John Hancock Funds II NCSR Certified annual shareholder report (management investment company)

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 811-21779

JOHN HANCOCK FUNDS II
---------------------------------------------------------
(Exact name of registrant as specified in charter)

601 CONGRESS STREET, BOSTON, MA 02210-2805
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(Address of principal executive offices) (Zip code)

GORDON M. SHONE, 601 CONGRESS STREET, BOSTON, MA 02210-2805
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(Name and address of agent for service)

Registrant's telephone number, including area code: (617) 663-3000
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Date of fiscal year end: 8/31
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Date of reporting period: 8/31/06
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ITEM 1. REPORTS TO STOCKHOLDERS.

The first report applies to Lifestyle Aggressive Portfolio, the second report applies to Lifestyle Balanced Portfolio, the third report applies to Lifestyle Conservative Portfolio, the fourth report applies to Lifestyle Growth Portfolio, the fifth report applies to Lifestyle Moderate Portfolio and the sixth report applies to 56 of the Registrant’s portfolios

CEO corner

TABLE OF CONTENTS

Managers' report

page 2

A look at performance

page 6

Your expenses

page 8

Portfolio’s investments

page 10

Financial statements

page 12

Trustees and officers

page 31

For more information

page 36

To Our Shareholders,

The future has arrived at John Hancock Funds.

We have always been firm believers in the powerful role the Internet can play in providing fund information to our shareholders and prospective investors. Recently, we launched a redesigned, completely overhauled Web site that is more visually pleasing, easier to navigate and, most importantly, provides more fund information and learning tools without overwhelming the user.

Not long after we embarked on this major project, a study was released by the Investment Company Institute, the mutual fund industry’s main trade group, which found that an overwhelming majority of shareholders consider the Internet the “wave of the future” for accessing fund information.

The new site also has more educational tools and interactive modules to educate and assist investors with their financial goals, from college savings to retirement planning. A new “I want to…” feature allows investors to check performance, invest more money, update personal information or download prospectuses and forms quickly and easily.

In another of our ongoing efforts to provide our shareholders with top-notch service, we also redesigned our shareholder reports, as you may have noticed with this report. We hope the larger size, more colorful cover and redesigned presentation of the commentary and data tables will draw you in and make them easier to read.

After you’ve read your shareholder report, we encourage you to visit our new Web site — www.jhfunds.com — and take a tour. It’s easy, fast and fun and allows you to be in control of what you see and do. In short, it’s the wave of the future!

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of August 31, 2006. They are subject to change at any time.

Your portfolio at a glance

The Portfolio seeks long-term growth of capital. Current income is not a consideration. To pursue this goal, the Portfolio, which is a fund-of-funds, normally invests 100% of its assets in underlying funds that invest primarily in equity securities.

Since inception*

► Across all asset classes, financial markets gained ground during the period, with nearly all of the Portfolio’s underlying funds performing positively.

► The Portfolio’s allocation to international and natural resources funds was a big positive, while U.S. large-cap growth and core funds lagged the S&P 500 Index.

► While there were relatively few management changes to the Portfolio, we did add a new international small-cap stock fund to broaden our exposure to that asset class.

Target Asset Allocation
Equity	% of Total

U.S. Large Cap	38.0

International	24.0

U.S. Small Cap	14.0

U.S. Mid Cap	13.0

International Small Cap	6.0

Natural Resources	5.0

Managers’ report

John Hancock

Lifestyle Aggressive Portfolio

The Portfolio’s broad diversification across multiple asset classes and fund managers was very valuable during a volatile market environment. Just about every investment type ended the reporting period in positive territory for the period beginning October 15, 2005 (the Portfolio’s inception date), through August 31, 2006.

Continuing the trend of the past several years, large-capitalization U.S. stocks again lagged their mid-cap counterparts, which in turn underperformed small caps — although the performance gap between large and small stocks finally began to narrow during the period. Once again, one trend that remained the same across all U.S. market-capitalization ranges: value stocks continued to outshine growth stocks, despite several brief periods during which growth took the lead.

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE... AND WHAT’S BEHIND THE NUMBERS
Natural Resources	▲	Continued to benefit from steadily rising commodity prices.
(Wellington)
International	▲	Strong international stock performance and favorable currency
Opportunities (Marsico)		movements added to results.
U.S. Multi-Sector	▼	Emphasis on certain higher-quality, large-cap growth stocks
(GMO)		detracted from performance.

From the MFC Global Investment Management (U.S.A.), LLC’s Portfolio Management Team

“One big reason for the
Portfolio’s solid relative
performance was our large
weighting in international
equities, approximately 30%
of assets.”

International stocks were particularly strong performers during the period, as indicated by the 23.02% return of the MSCI EAFE Index. Equities abroad benefited from continued relative weakness in the U.S. dollar and greater uncertainty about the direction of interest rates in the United States. Another asset class that did very well was natural resources, which was helped by continued economic expansion boosting demand for commodities, coupled with relatively tight supplies. Energy stocks did particularly well, as oil prices rose further. Excellent supply/demand fundamentals also helped companies in the metals and mining and the paper and forest products industries.

Performance results

John Hancock Lifestyle Aggressive Portfolio’s Class A, Class B, Class C, Class R3, Class R4 and Class R5, which began operations on October 18, 2005, producd total returns of 11.85%, 11.22%, 11.22%, 11.81%, 11.94% and 12.16%, respectively, at net asset value through August 31, 2006. Class 1 shares returned 12.27% at net asset value since beginning operation October 15, 2005. In comparison, the Portfolio’s benchmark, the S&P 500 Index, returned 11.44% and Morningstar’s average large blend fund returned 11.41% .¹ Keep in mind that your net asset value return will be different from the Portfolio’s performance if you were not invested in the Portfolio for the entire period and did not reinvest all distributions. Please see pages six and seven for historical performance information.

Lifestyle Aggressive Portfolio

International gains

One big reason for the Portfolio’s solid relative performance was our large weighting in international equities, approximately 30% of assets. Particularly strong results came from International Core (+22.19%, GMO), one of our two largest allocations at 8% of the Portfolio at period end. Another big help was our position in International Opportunities (+23.51%, Marsico), in which we held a 4% stake.

In addition, we benefited significantly from our exposure to the natural resources asset class through a 5% position in Natural Resources (+24.62%, Wellington). The Portfolio’s overweighting in natural resources has declined somewhat relative to our benchmark, as these stocks have performed well and grown to occupy a larger portion of the index.

On the Portfolio’s domestic equity side, we were most helped by a number of our large-cap value-oriented investments. For example, Quantitative Value (+17.98%, MFC Global Investment Management (U.S.A.), LLC) enjoyed very strong results, while Large Cap Value (+13.43%, Mercury) and Equity Income (+13.54%, T. Rowe Price) also generated solid gains. By contrast, the Portfolio’s large-cap core and growth-oriented investments tended to lag in a market environment that continued to favor value and small-cap stocks. Capital Appreciation, managed by Jennison, turned in a modestly positive return of 2.72%, while the GMO-managed U.S. Multi-Sector — at 8% our other largest weighting — gained 4.25% . Core Equity (+3.63%, Legg Mason) also failed to keep pace with the S&P 500 Index.

Broader small-cap exposure

We initiated relatively few meaningful asset allocation shifts during the period. In May, we did establish a new position in a new international small-cap fund, International Small Company, managed by Dimensional Fund Advisors (DFA). This fund was added to complement our existing holdings in International Small Cap, managed by Templeton. The DFA offering provides us with two important benefits — added exposure to the smaller end of the international small-cap spectrum, and enough capacity to maintain our desired exposure to this important asset class.

Lifestyle Aggressive Portfolio

Outlook

We have maintained the Portfolio’s relatively neutral weighting in international markets. On the positive side, there are some good pockets of growth around the world, particularly in Japan. However, higher valuations in many markets along with the potential for rising interest rates are some reasons to be cautious.

“On the Portfolio’s domestic equity
side, we were most helped by a
number of our large-cap value-
oriented investments.”

We believe the stage may be set for high-quality, large-cap stocks to finally take the lead over their mid- and small-cap counterparts. We have positioned the Portfolio to benefit from such a scenario, maintaining a slight overweight in funds that own high-quality, large-cap stocks, such as T. Rowe Price’s Blue Chip Growth. Added exposure to this group comes from funds such as U.S. Multi Sector, whose management team also has prepared for a high-quality large-cap shift and has tilted its portfolio accordingly. Although we are expecting large caps to take the lead, we can’t predict when such a reversal will take place. If, however, investors continue their preference for higher-risk, lower-quality asset classes, we believe our broadly diversified Portfolio can help capture these performance gains while effectively managing volatility for our shareholders.

This commentary reflects the views of the portfolio managers through the end of the Portfolio’s period discussed in this report. The managers’ statements reflect their own opinions. As such, they are in no way guarantees of future events and are not intended to be used as investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant.

International investing involves special risks such as political, economic and currency risks and differences in accounting standards and financial reporting. See the prospectus for the risks of investing in small-cap stocks. See the prospectus for the risks of investing in high-yield bonds.

¹ Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

² As a percentage of net assets on August 31, 2006.

Lifestyle Aggressive Portfolio

A look at performance

For the period ending August 31, 2006

		Cumulative total returns
		with maximum sales charge (POP)

	Inception	Since
Class	date	Inception^a

A	10-18-05	6.30%

B	10-18-05	6.22

C	10-18-05	10.22

R3^b	10-18-05	11.81

R4^b	10-18-05	11.94

R5^b	10-18-05	12.16

1^b	10-15-05	12.27

Performance figures assume all distributions are reinvested. Returns with maximum sales charge reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R3, Class R4, Class R5 and Class 1 shares.

The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, the Portfolio’s current performance may be higher or lower than the performance shown. For performance data current to the most recent month-end, please call 1-800-225-5291 or visit the Portfolio’s Web site at www.jhfunds.com.

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Portfolio’s performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable.

Since inception performance is calculated with an opening price (prior day’s close) on inception date.

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05 and Class 1 shares began operation on 10-15-05.

^b For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5 and Class 1 share prospectuses.

Lifestyle Aggressive Portfolio

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in two separate indexes.

		Without sales	With maximum
Class	Period beginning	charge	sales charge	Index 1	Index 2

B¹	10-18-05	$11,122	$10,622	$11,144	$12,302

C¹	10-18-05	11,122	11,022	11,144	12,302

R3^1,3	10-18-05	11,181	11,181	11,144	12,302

R4^1,3	10-18-05	11,194	11,194	11,144	12,302

R5^1,3	10-18-05	11,216	11,216	11,144	12,302

1^2,3	10-15-05	11,227	11,227	11,177	11,944

Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Portfolio’s Class B, Class C, Class R3, Class R4, Class R5 and Class 1 shares, respectively, as of August 31, 2006. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

Index 1 — Standard & Poor’s 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — MSCI EAFE Gross Total Return Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. As of June 2006 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

¹ Index 2 figure from 10/31/05.

²Index 2 figure from 9/30/05.

³ For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5 and Class 1 share prospectuses.

Lifestyle Aggressive Portfolio

Your expenses

These examples are intended to help you understand your ongoing operating expenses.

Understanding portfolio expenses

As a shareholder of the Portfolio, you incur two types of costs:

■ Transaction costs which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.

■ Ongoing operating expenses including management fees, distribution and service fees (if applicable) and other Portfolio expenses.

In addition to the operating expenses which the Portfolio bears directly, the Portfolio indirectly bears a pro rata share of the operating expenses of the underlying funds in which the Portfolio invests. Because the underlying funds have varied operating expenses and transaction costs and the Portfolio may own different proportions of the underlying funds at different times, the amount of expenses incurred indirectly by the Portfolio will vary. If these indirect expenses were included, your expenses paid during the period would have been higher.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

This example is intended to provide information about your portfolio’s actual ongoing operating expenses, and is based on your portfolio’s actual return. It assumes an account value of $1,000.00 on March 1, 2006, with the same investment held until August 31, 2006.

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06 ^a

Class A	$1,000.00	$1,004.30	$3.28

Class B	1,000.00	1,000.70	6.81

Class C	1,000.00	1,000.70	6.81

Class R3	1,000.00	1,005.00	3.44

Class R4	1,000.00	1,005.00	2.48

Class R5	1,000.00	1,006.40	0.96

Class 1	1,000.00	1,007.20	0.56

Lifestyle Aggressive Portfolio

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at August 31, 2006 by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Hypothetical example for comparison purposes

This table allows you to compare your portfolio’s ongoing operating expenses with those of any other fund. It provides an example of the Portfolio’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annual return before expenses (which is not your portfolio’s actual return). It assumes an account value of $1,000.00 on March 1, 2006, with the same investment held until August 31, 2006. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06 ^a

Class A	$1,000.00	$1,021.93	$3.31

Class B	1,000.00	1,018.40	6.87

Class C	1,000.00	1,018.40	6.87

Class R3	1,000.00	1,021.78	3.47

Class R4	1,000.00	1,022.74	2.50

Class R5	1,000.00	1,024.25	0.97

Class 1	1,000.00	1,024.65	0.56

Remember, these examples do not include any transaction costs, such as sales charges; therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.

^aExpenses are equal to the Portfolio's annualized expense ratio of 0.65%, 1.35%, 1.35%, 0.68%, 0.49%, 0.19% and 0.11% for Class A, Class B, Class C, Class R3, Class R4, Class R5 and Class 1, respectively, multiplied by the average account value over the period, multiplied by the number of days in the period /365 or 366 (to reflect the one-half year period). The expense ratios do not include fees and expenses incurred by the Portfolio from the underlying funds.

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Portfolio’s investments

Securities owned by the Portfolio on 8-31-06

Portfolio of investments, showing all underlying funds.

Issuer	Shares	Value

Investment companies 99.97%		$2,493,325,747
(Cost $2,332,750,384)
John Hancock Funds II

All Cap Growth Fund Class NAV	3,022,333	$49,717,383

All Cap Value Fund Class NAV	3,136,053	49,549,643

Blue Chip Growth Fund Class NAV	6,985,892	124,348,875

Capital Appreciation Fund Class NAV	10,532,521	99,532,325

Core Equity Fund Class NAV	5,286,718	75,441,459

Emerging Growth Fund Class NAV	2,789,800	51,164,930

Equity-Income Fund Class NAV	2,736,026	49,549,424

Fundamental Value Fund Class NAV	6,280,209	99,415,710

International Equity Index Fund Class NAV	6,555,210	124,352,333

International Opportunities Fund Class NAV	6,182,381	99,907,280

International Small Cap Fund Class NAV	3,557,189	74,523,111

International Small Company Fund Class NAV	7,989,553	74,542,530

International Value Fund Class NAV	9,755,233	174,423,566

Large Cap Fund Class NAV	3,379,099	49,571,376

Large Cap Value Fund Class NAV	1,069,803	24,616,172

Mid Cap Core Fund Class NAV	4,327,223	74,687,869

Mid Cap Index Fund Class NAV	1,361,218	25,005,575

Mid Cap Stock Fund Class NAV	3,170,730	50,192,653

Mid Cap Value Equity Fund Class NAV	2,578,332	24,880,903

Mid Cap Value Fund Class NAV	2,635,211	49,700,071

Natural Resources Fund Class NAV	3,492,935	124,348,487

Quantitative Mid Cap Fund Class NAV	3,479,128	49,821,116

Quantitative Value Fund Class NAV	4,497,753	74,482,795

Small Cap Fund Class NAV	5,402,799	75,855,305

Small Cap Index Fund Class NAV	3,174,474	50,632,853

Small Company Fund Class NAV	3,224,770	49,790,455

Small Company Value Fund Class NAV	3,199,392	75,601,641

Special Value Fund Class NAV	2,441,971	50,109,240

U.S. Global Leaders Growth Fund Class NAV	1,958,976	24,839,817

U.S. Multi Sector Fund Class NAV	19,130,584	199,149,379

Value & Restructuring Fund Class NAV	2,239,676	24,815,609

Vista Fund Class NAV	4,636,102	49,606,288

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Issuer	Shares	Value

John Hancock Funds III

International Core Fund Class NAV	5,057,125	$199,149,574

Total investments 99.97%		$2,493,325,747

Other assets in excess of liabilities 0.03%		$631,006

Total net assets 100.00%		$2,493,956,753

Percentages are stated as a percent of net assets of the Portfolio.

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial statements

Statement of assets and liabilities 8-31-06

This Statement of Assets and Liabilities is the Portfolio’s balance sheet. It shows the value of what the Portfolio owns, is due and owes. You’ll also find the net asset value and the maximum offering price per share.

Assets

Investments in affiliated funds, at value (cost $2,332,750,384)	$2,493,325,747
Receivable for fund shares sold	2,917,687
Other assets	7,767
Total assets	2,496,251,201

Liabilities

Payable for investments purchased	1,954,062
Payable for fund shares repurchased	68,176
Payable to affiliates
Fund administration fees	46,274
Transfer agent fees	36,857
Trustees’ fees	515
Due to adviser	22,540
Other payables and accrued expenses	166,024
Total liabilities	2,294,448

Net assets

Capital paid-in	2,274,094,924
Accumulated net realized gain on investments	54,811,392
Net unrealized appreciation on investments	160,575,363
Accumulated net investment income	4,475,074
Net assets	$2,493,956,753

Net asset value per share

Based on net asset values and shares outstanding
— the Portfolio has an unlimited number of shares authorized with no par value
Class A ($35,037,913 ÷ 2,492,440 shares)	$14.06
Class B ($8,453,392 ÷ 603,673 shares)	$14.00
Class C ($25,269,023 ÷ 1,804,306 shares)	$14.00
Class R3 ($1,087,135 ÷ 77,333 shares)	$14.06
Class R4 ($1,579,009 ÷ 112,222 shares)	$14.07
Class R5 ($468,879 ÷ 33,274 shares)	$14.09
Class 1 ($2,422,061,402 ÷ 172,137,524 shares)	$14.07

Maximum offering price per share

Class A¹($14.06 ÷ 95%)	$14.80

¹ 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

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of operations For the period ended 8-31-06^a

This Statement of Operations summarizes the Portfolio’s investment income earned and expenses incurred in operating the Portfolio. It also shows net gains (losses) for the period stated.

Investment income

Income distributions received from affiliated underlying funds	11,032,304
Total investment income	11,032,304

Expenses

Investment management fees (Note 3)	793,633
Distribution and service fees (Note 3)	1,087,115
Transfer agent fees (Note 3)	52,221
Blue sky fees (Note 3)	99,466
Printing and postage fees (Note 3)	51,472
Fund administration fees (Note 3)	166,487
Audit and legal fees	85,026
Custodian fees	10,944
Trustees’ fees (Note 3)	21,991
Registration and filing fees	70,700
Miscellaneous	17,551
Total expenses	2,456,606
Less expense reductions (Note 3)	(122,636)
Net expenses	2,333,970
Net investment income	8,698,334

Realized and unrealized gain

Net realized gain on investments	54,792,008
Capital gain distributions received from affiliated underlying funds	6,427,198
Change in net unrealized appreciation of investments	160,575,363
Net realized and unrealized gain	221,794,569
Increase in net assets from operations	$230,492,903

^a Period from 10-15-06 (commencement of operatons) to 8-31-06.

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of changes in net assets

This Statement of Changes in Net Assets shows how the value of the Portfolio’s net assets has changed during the period. It reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Portfolio share transactions.

	Period
	ended _a
	8-31-06

Increase (decrease) in net assets

From operations
Net investment income	$8,698,334
Net realized gain	61,219,206
Change in net unrealized appreciation	160,575,363
Increase in net assets resulting from operations	230,492,903
Distributions to shareholders
From net investment income
Class A	(10,791)
Class B	(2,807)
Class C	(4,862)
Class R3	(460)
Class R4	(513)
Class R5	(565)
Class 1	(10,836,557)
	(10,856,555)
From Fund share transactions	2,274,320,405

Net assets

End of period	$2,493,956,753
Accumulated net investment income	$4,475,074

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

The Financial highlights show how the Portfolio’s net asset value for a share has changed since the beginning of the period.

CLASS A SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.63
Net investment loss ^h,v	(0.07)
Net realized and unrealized
gain on investments	1.56
Total from investment operations	1.49
Less distributions
From net investment income	(0.06)
	(0.06)
Net asset value, end of period	$14.06
Total return ^k,l(%)	11.85 ^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$35
Ratio of net expenses
to average net assets ^q(%)	0.65 ^r
Ratio of gross expenses
to average net assets ^p,q(%)	0.84 ^r
Ratio of net investment loss
to average net assets ^v(%)	(0.59) ^r
Portfolio turnover (%)	23 ^m

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.63
Net investment loss ^h,v	(0.15)
Net realized and unrealized
gain on investments	1.56
Total from investment operations	1.41
Less distributions
From net investment income	(0.04)
	(0.04)
Net asset value, end of period	$14.00
Total return ^k,l(%)	11.22^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$8
Ratio of net expenses
to average net assets ^q(%)	1.34^r
Ratio of gross expenses
to average net assets ^p,q(%)	2.00^r
Ratio of net investment loss
to average net assets ^v(%)	(1.23)^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.63
Net investment loss ^h,v	(0.15)
Net realized and unrealized
gain on investments	1.57
Total from investment operations	1.42
Less distributions
From net investment income	(0.05)
	(0.05)
Net asset value, end of period	$14.00
Total return ^k,l(%)	11.22^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$25
Ratio of net expenses
to average net assets ^q(%)	1.34^r
Ratio of gross expenses
to average net assets ^p,q(%)	1.60^r
Ratio of net investment loss
to average net assets ^v(%)	(1.27)^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights




CLASS R3 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.63
Net investment loss ^h,v	(0.05)
Net realized and unrealized
gain on investments	1.54
Total from investment operations	1.49
Less distributions
From net investment income	(0.06)
	(0.06)
Net asset value, end of period	$14.06
Total return ^k,l(%)	11.81^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses
to average net assets ^q(%)	0.69^r
Ratio of gross expenses
to average net assets ^p,q(%)	8.07^r
Ratio of net investment loss
to average net assets ^v(%)	(0.47)^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R4 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.63
Net investment loss ^h,v	(0.05)
Net realized and unrealized
gain on investments	1.55
Total from investment operations	1.50
Less distributions
From net investment income	(0.06)
	(0.06)
Net asset value, end of period	$14.07
Total return ^k,l(%)	11.94^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$2
Ratio of net expenses
to average net assets ^q(%)	0.49^r
Ratio of gross expenses
to average net assets ^p,q(%)	4.08^r
Ratio of net investment loss
to average net assets ^v(%)	(0.38)^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R5 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.63
Net investment income ^h,v	0.01
Net realized and unrealized
gain on investments	1.52
Total from investment operations	1.53
Less distributions
From net investment income	(0.07)
	(0.07)
Net asset value, end of period	$14.09
Total return ^k,l(%)	12.16^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$—ⁱ
Ratio of net expenses
to average net assets ^q(%)	0.20^r
Ratio of gross expenses
to average net assets ^p,q(%)	8.26^r
Ratio of net investment income
to average net assets ^v(%)	0.05^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Aggressive Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 1 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.60
Net investment income ^h,v	0.06
Net realized and unrealized
gain on investments	1.48
Total from investment operations	1.54
Less distributions
From net investment income	(0.07)
	(0.07)
Net asset value, end of period	$14.07
Total return ^k(%)	12.27^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$2,422
Ratio of net expenses
to average net assets ^q(%)	0.11^r
Ratio of net investment income
to average net assets ^v(%)	0.48^r
Portfolio turnover (%)	23^m

^aClass A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, and Class 1 shares began operation on 10-15-05.

^hBased on the average of the shares outstanding.

ⁱLess than $500,000.

^kAssumes dividend reinvestment and does not reflect the effect of sales charges.

^lTotal returns would have been lower had certain expenses not been reduced during the period shown.

^mNot annualized.

^pDoes not take into consideration expense reductions during the period shown.

^qDoes not include expenses of the investment companies in which the Portfolio invests.

^rAnnualized.

^vRecognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

See notes to financial statements

Lifestyle Aggressive Portfolio

Notes to financial statements

1. Organization

The John Hancock Lifestyle Aggressive Portfolio (the “Portfolio”) is a newly organized non-diversified series of John Hancock Funds II (the “Trust”). The Trust was established as a Massachusetts business trust on June 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment management company.

The Portfolio operates as a “fund of funds”, investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III and in other permitted investments.

John Hancock Investment Management Services, LLC (the “Adviser”), a Delaware limited liability company controlled by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”) serves as investment adviser for the Trust and John Hancock Funds, LLC (the “Distributor”), an affiliate of the Adviser, serves as principal underwriter. John Hancock Life Insurance Company of New York (“John Hancock New York”) is a wholly owned subsidiary of John Hancock USA. John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufactures Life Insurance Company (“Manulife”), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

The Portfolio commenced operations after certain separate accounts of John Hancock USA redeemed their interests in portfolios of John Hancock Trust and certain unaffiliated mutual funds of approximately $350 million at the close of business on October 14, 2005, with additional redemption proceeds of approximately $1.5 billion received on October 28, 2005, and invested such proceeds in Class 1 shares of the Portfolio, which in turn invested the proceeds in underlying funds of the Trust.

The Board of Trustees has authorized the issuance of multiple classes of shares of the Portfolio, including classes designated as Class A, Class B, Class C, Class R3, Class R4, Class R5 and Class 1 shares.

Class A, B, and C shares are open to all retail investors. Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class R3, R4 and R5 shares are available only to certain retirement plans.

The shares of each class represent an interest in the same portfolio of investments of the Portfolio, and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the SEC and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Class B shares will convert to Class A shares eight years after purchase.

2. Significant accounting policies

In the preparation of the financial statements, the Portfolio follows the policies described below. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.

Lifestyle Aggressive Portfolio

Securities valuation

The net asset value of the shares of the Portfolio is determined daily as of the close of the New York Stock Exchange, normally at 4:00 p.m. Eastern Time. Investments in underlying funds are valued at their respective net asset values each business day, or at fair value as determined in good faith in accordance with procedures approved by the Trustees. Securities in the underlying funds’ portfolios are valued in accordance with their respective valuation polices, as outlined in the underlying funds’ financial statements. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost.

Security transactions and related investment income

Investment security transactions in the underlying funds are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income and capital gain distributions are recorded on the ex-dividend date.

Gains and losses on securities sold are determined on the basis of specific identi-fied cost for both financial and federal income tax reporting purposes.

Multi-class operations

All income, expenses (except for class-specific expenses) and realized and unrealized gains (losses) are allocated to each class of shares based upon the relative net assets of each class. Dividends to shareholders from net investment income are determined at a class level and distributions from capital gains are determined at a Portfolio level.

Expense allocation

Expenses not directly attributable to a particular Portfolio or class of shares are allocated based on the relative share of net assets of the Portfolio at the time the expense was incurred. Class-specific expenses, such as transfer agency fees, blue sky fees, printing and postage fees and distribution and service fees, are accrued daily and charged directly to the respective share classes. Expenses in the Portfolio’s Statement of Operations reflect the expenses of the Portfolio and do not include any indirect expenses related to the underlying funds. Because the underlying funds have varied expense levels and the Portfolio may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the Portfolio will vary.

Federal income taxes

The Portfolio qualifies as a “regulated investment company” by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

New accounting pronouncement

In June 2006, Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”) was issued and is effective for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. This Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return, and requires certain expanded disclosures. Management is currently evaluating the application of the Interpretation to the Portfolio and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on the Portfolio’s financial statements.

In September 2006, FASB Standard No. 157, Fair Value Measurements (“FAS 157”) was issued, and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishing a framework for measuring fair value and expands disclosure about fair value measurements. Management is currently evaluating the application of FAS 157 to the Portfolio, and its impact, if any, resulting from the adoption of FAS 157 on the Portfolio’s financial statements.

Distribution of income and gains

The Portfolio records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date.

Lifestyle Aggressive Portfolio

During the period ended August 31, 2006, the tax character of distributions paid was as follows: ordinary income $10,856,555. Distributions paid by the Portfolio with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Portfolio’s financial statements as a return of capital. As of August 31, 2006, the components of distributable earnings on a tax basis included $59,267,085 of undistributed ordinary income and $19,381 of undistributed long-term gain.

Capital accounts

The Portfolio reports the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carry-forward is available). Accordingly, the Portfolio may periodically make reclassifications among certain capital accounts, without affecting its net asset value.

3. Investment advisory and
other agreements

Advisory fees

The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvisers to handle the investment and reinvestment of the assets of the Portfolio, subject to the supervision of the Board of Trustees. Under the Advisory Agreement, the Portfolio pays a monthly management fee to the Adviser equivalent, on an annual basis, to its pro rata portion of the sum of: (a) 0.05% of the first $7,500,000,000 of the aggregate daily net assets and (b) 0.04% of the aggregate daily net assets in excess of $7,500,000,000 of the five Lifestyle Portfolios of the Trust (Lifestyle Aggressive, Lifestyle Growth, Lifestyle Balanced, Lifestyle Moderate and Lifestyle Conservative) and the five Lifestyle Portfolios of John Hancock Trust (Lifestyle Aggressive, Lifestyle Growth, Lifestyle Balanced, Lifestyle Moderate and Lifestyle Co nservative). The Portfolio is not responsible for payment of the subadvisory fees.

Expense reimbursements

The Adviser has contractually agreed to waive advisory fees or reimburse the Portfolio’s expenses for Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares to the extent that blue sky fees and printing and postage expenses attributable to each class exceed 0.09% of the average annual net assets attributable to the classes, at least until November 1, 2006, and may thereafter be terminated by the Adviser at any time. Accordingly, the expense reductions related to this expense limitation amounted to $24,863, $22,518, $21,975, $17,405, $17,026 and $17,584 for Class A, Class B, Class C, Class R3, Class R4 and Class R5, respectively, for the period ended August 31, 2006.

Administration fees

The Portfolio has an agreement with the Adviser that requires the Portfolio to reimburse the Adviser for all expenses associated with providing the administrative, financial, accounting and recordkeeping services of the Portfolio, including the preparation of all tax returns, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports.

Distribution plans

Lifestyle Aggressive Portfolio

average daily net assets of Class A, Class B, Class C, Class R3, Class R4 and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

The Portfolio has also adopted a Service Plan with respect to Class R3, Class R4 and Class R5 shares (the “Service Plan”). Under the Service Plan, the Portfolio pays up to 0.15%, 0.10% and 0.05% of the average daily net assets of Class R3, Class R4 and Class R5 shares, respectively, for certain other services.

Sales charges

Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the period ended August 31, 2006, the Portfolio was informed that the Distributor received net up-front sales charges of $800,789 with regard to sales of Class A shares. Of this amount, $128,706 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $664,228 was paid as sales commissions to unrelated broker-dealers and $7,855 was paid as sales commissions to sales personnel of Signator Investors, Inc. (“Signator Investors”), a related broker-dealer, an indirect subsidiary of MFC.

Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolio in connection with the sale of Class B and Class C shares. During the period ended August 31, 2006, the Portfolio was informed that CDSCs received by the Distributor amounted to $5,977 for Class B shares and $3,815 for Class C shares.

Transfer agent fees

The Portfolio has a Transfer Agency Agreement with John Hancock Signature Services, Inc. (“Signature Services”), an indirect subsidiary of MFC. For Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares, the Portfolio pays a monthly transfer agent fee at an annual rate of 0.05% of each class’s average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value.

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of each of Class A, Class B, Class C, Class R3, Class R4 and Class R5 share average daily net assets. This agreement is effective until December 31, 2006. Signature Services reserves the right to terminate this limitation in the future. In addition, Signature Services has voluntarily agreed to further limit transfer agent fees for Class R3, Class R4 and Class R5 shares so that such fees do not exceed 0.05% annually of each class’s average daily net assets. Accordingly, the transfer agent fees reductions amounted to $304, $638 and $323 for Class R3, Class R4 and Class R5 shares, respectively, during the period ended August 31, 2006. Signature Services reserves the right to terminate this limitation at any time.

Lifestyle Aggressive Portfolio

Expenses under the agreements described above for the period ended August 31, 2006, were as follows:

	Distribution and	Transfer		Printing and
Share Class	service fees	agent	Blue sky	postage


Class A	$39,384	$26,457	$17,638	$19,040
Class B	34,257	6,917	16,149	9,452
Class C	84,676	17,156	17,423	12,174
Class R3	1,226	397	15,925	1,698
Class R4	1,455	877	15,925	1,550
Class R5	7	417	16,406	1,379
Class 1	926,110	—	—	6,179
Total	$1,087,115	$52,221	$99,466	$51,472

Trustees’ fees

The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. Total Trustees’ expenses are allocated based on each portfolio’s average daily net asset value.

4. Guarantees and Indemnifications

Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

5. Capital shares

Share activities for the Portfolio for the period ended August 31, 2006 were as follows:

	Period ended 8-31-06^a
	Shares	Amount

Class A shares

Sold	2,656,426	$37,105,900
Distributions reinvested	739	9,867
Repurchased	(164,725)	(2,284,281)
Net increase	2,492,440	$34,831,486


Class B shares

Sold	641,314	$8,963,149
Distributions reinvested	161	2,152
Repurchased	(37,802)	(520,561)
Net increase	603,673	$8,444,740



Class C shares

Sold	1,853,043	$25,877,041
Distributions reinvested	283	3,786
Repurchased	(49,020)	(685,074)
Net increase	1,804,306	$25,195,753

Lifestyle Aggressive Portfolio

	Period ended 8-31-06^a
	Shares	Amount

Class R3 shares

Sold	78,517	$1,063,860
Repurchased	(1,184)	(16,116)
Net increase	77,333	$1,047,744


Class R4 shares

Sold	125,577	$1,762,808
Repurchased	(13,355)	(183,449)
Net increase	112,222	$1,579,359


Class R5 shares

Sold	38,324	$533,868
Repurchased	(5,050)	(73,349)
Net increase	33,274	$460,519


Class 1 shares

Sold	173,760,521	$2,225,676,778
Distributions reinvested	812,945	10,836,557
Repurchased	(2,435,942)	(33,752,531)
Net increase	172,137,524	$2,202,760,804


Net increase	177,260,772	$2,274,320,405

^aClass A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, and Class 1 shares began operation on 10-15-05.

6. Investment transactions

Purchases and sales of the underlying funds during the period ended August 31, 2006, aggregated $2,782,373,375 and $504,414,999, respectively.

The cost of investments owned on August 31, 2006, including short-term investments, for federal income tax purposes, was $2,332,750,384. Gross unrealized appreciation and depreciation of investments aggregated $173,885,053 and $13,309,690, respectively, resulting in net unrealized appreciation of $160,575,363.

7. Investment in affiliated underlying funds

The Portfolio invests primarily in the underlying funds that are managed by affiliates of the Adviser. The Portfolio does not invest in the underlying funds for the purpose of exercising management or control.

A summary of the Portfolio’s transactions in the securities of affiliated issuers in which the Portfolio’s holdings represent 5% or more of the outstanding voting securities of the issuer, during the period ended August 31, 2006 is set forth below.

Lifestyle Aggressive Portfolio

Affiliate —	Shares	Shares	Ending Share		Ending
Class NAV	Purchased	Sold	Amount	Proceeds	Value

All Cap Growth	3,022,915	582	3,022,333	$9,704	$49,717,383
All Cap Value	3,136,588	535	3,136,053	8,328	49,549,643
Blue Chip Growth	6,993,440	7,548	6,985,892	132,497	124,348,875
Capital Appreciation	10,634,630	102,109	10,532,521	980,546	99,532,325
Core Equity	5,379,463	92,745	5,286,718	1,395,241	75,441,459
Emerging Growth	2,849,165	59,365	2,789,800	1,092,545	51,164,930
Emerging Small Company	252,226	252,226	—	7,052,232	—
Equity-Income	4,051,280	1,315,254	2,736,026	23,659,779	49,549,424
Fundamental Value	6,326,518	46,309	6,280,209	730,650	99,415,710
International Core *	5,057,125	—	5,057,125	—	199,149,574
International Equity Index	6,643,725	88,515	6,555,210	1,653,856	124,352,333
International
Opportunities	6,500,950	318,569	6,182,381	4,890,687	99,907,280
International Small Cap	6,972,659	3,415,470	3,557,189	74,920,265	74,523,111
International Small Company	8,003,632	14,079	7,989,553	130,062	74,542,530
International Stock	15,376,049	15,376,049	—	210,898,404	—
International Value	11,382,320	1,627,087	9,755,233	28,832,080	174,423,566
Large Cap	3,379,943	844	3,379,099	12,124	49,571,376
Large Cap Value	1,070,611	808	1,069,803	17,033	24,616,172
Mid Cap Core	5,625,095	1,297,872	4,327,223	23,244,140	74,687,869
Mid Cap Index	1,361,298	80	1,361,218	1,452	25,005,575
Mid Cap Stock	3,186,155	15,425	3,170,730	231,280	50,192,653
Mid Cap Value Equity	2,578,534	202	2,578,332	1,916	24,880,903
Mid Cap Value	3,849,395	1,214,184	2,635,211	23,542,159	49,700,071
Natural Resources	4,622,763	1,129,828	3,492,935	36,288,093	124,348,487
Quantitative Mid Cap	3,479,631	503	3,479,128	7,484	49,821,116
Quantitative Value	4,584,366	86,613	4,497,753	1,426,897	74,482,795
Small Cap	5,465,472	62,673	5,402,799	976,051	75,855,305
Small Cap Index	3,174,671	197	3,174,474	3,049	50,632,853
Small Cap Opportunities	1,890,213	1,890,213	—	48,025,547	—
Small Company	3,230,032	5,262	3,224,770	81,705	49,790,455
Small Company Value	3,243,700	44,308	3,199,392	1,106,036	75,601,641
Special Value	2,461,043	19,072	2,441,971	406,574	50,109,240
U.S. Global Leaders
Growth	2,789,786	830,810	1,958,976	10,875,171	24,839,817
U.S. Multi Sector	19,227,030	96,446	19,130,584	986,469	199,149,379
Value & Restructuring	2,239,885	209	2,239,676	2,274	24,815,609
Vista	4,703,770	67,668	4,636,102	792,670	49,606,288

*Represents the Portfolio’s investment in John Hancock Funds III International Core Fund

8. Reclassification of accounts

During the period ended August 31, 2006, the Portfolio reclassified amounts to reflect a decrease in accumulated net realized gain on investments of $6,407,814, an increase in accumulated net investment income of $6,633,295 and a decrease in capital paid-in of $225,481. This represents the amounts necessary to report these balances on a tax basis, excluding certain temporary differences, as of August 31, 2006. Additional adjustments may be needed in subsequent reporting periods. These reclassifications, which have no impact on the net asset value of the Portfolio, are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America and book and tax differences in accounting for non-deductible organizational costs. The calculation of net investment income per share in the Portfolio’s Financial Highlights excludes these adjustments.

Lifestyle Aggressive Portfolio

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of John Hancock Lifestyle Aggressive Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of securities owned, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of John Hancock Lifestyle Aggressive Portfolio (the “Portfolio”) at August 31, 2006, and the results of its operations, the changes in its net assets, and the financial highlights for the period October 15, 2005 (commencement of operations) through August 31, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Portfolio’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2006, by correspondence with the transfer agent, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolio, if any, paid during its taxable year ended August 31, 2006.

With respect to the ordinary dividends paid by the Portfolio for the fiscal period ended August 31, 2006, 24.82% of the dividends qualify for the corporate dividends-received deduction.

The Portfolio hereby designates the maximum amount allowable of its net taxable income as qualified diviend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2006.

Shareholders will be mailed a 2006 U.S. Treasury Department Form 1099-DIV in January 2007. This will reflect the total of all distributions that are taxable for calendar year 2006.

Trustees and Officers

This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the Portfolio and execute policies formulated by the Trustees.

Independent Trustees

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Bardelis, Born: 1941	2005	209

President and Executive Officer, Island Commuter Corp. (Marine Transport).
Trustee of John Hancock Trust (since 1988) and John Hancock Funds III (since 2005).


Peter S. Burgess, Born: 1942	2005	209

Consultant (financial, accounting and auditing matters (since 1999);
Certified Public Accountant; Partner, Arthur Andersen (prior to 1999).
Director of the following publicly traded companies: PMA Capital Corporation
(since 2004) and Lincoln Educational Services Corporation (since 2004).
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


Elizabeth G. Cook, Born: 1937	2005	209

Expressive Arts Therapist, Massachusetts General Hospital (September 2001
to present); Expressive Arts Therapist, Dana Farber Cancer Institute
(September 2000 to January 2004); President, The Advertising Club of Greater Boston.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


William H. Cunningham, Born: 1944	2005	160

Former Chancellor, University of Texas System and former President of the
University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies
(until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting,
Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing)
(since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods
Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation
(insurance) (since 2006), Jefferson-Pilot Corporation (diversified life insurance
company) (until 2006), New Century Equity Holdings (formerly Billing Concepts)
(until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures
(until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems
Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive
Bridge, Inc. (college fundraising) (until 2001); Advisory Director, Q Investments
(until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce
Bank - Austin), LIN Television (since 2002), WilTel Communications (until 2003)
and Hayes Lemmerz International, Inc. (diversified automotive parts supply
company) (since 2003). Trustee of John Hancock Funds (since 2005) and
John Hancock Funds III (since 2005).

Independent Trustees (continued)

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Ladner, Born: 1938	2005	160

Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003);
Senior Vice President and Chief Financial Officer, UGI Corporation (public utility
holding company) (retired 1998); Vice President and Director for AmeriGas, Inc.
(retired 1998); Director of AmeriGas Partners, L.P. (until 1997)(gas distribution);
Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association
(since 2007). Trustee of John Hancock Funds (since 2004) and John Hancock
Funds III (since 2005).


Hassell H. McClellan, Born: 1945	2005	209

Associate Professor, The Wallace E. Carroll School of Management, Boston College.
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


James. M. Oates, Born: 1946	2005	209

Managing Director, Wydown Group (financial consulting firm)(since 1994);
Chairman, Emerson Investment Management, Inc. (since 2000); Chairman,
Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services
company) (since 1997). Director of the following publicly traded companies:
Stifel Financial (since 1996); Investor Financial Services Corporation (since 1995);
and Connecticut River Bancorp, Director (since 1998). Director, Phoenix Mutual
Funds (since 1988; overseeing 20 portfolios). Trustee of John Hancock Trust
(since 2004) and John Hancock Funds III (since 2005).

¹Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his/her successor is duly elected and qualified or until he/she dies, retires, resigns, is removed or becomes disqualified.

Non-Independent Trustee³

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

James R. Boyle, Born: 1959	2005	262

Chairman and Director, John Hancock Advisers, LLC (the “Adviser”), The Berkeley Financial Group, LLC
(“The Berkeley Group”) (holding company) and John Hancock Funds, LLC (since 2005); President, John
Hancock Annuities; Executive Vice President, John Hancock Life Insurance Company (since June, 2004);
President U.S. Annuities; Senior Vice President, The Manufacturers Life Insurance Company (U.S.A) (prior
to 2004).


Principal officers who are not Trustees

Name, age
*Position(s) held with Portfolio*		Officer of
Principal occupation(s) and		Portfolio
directorships during past 5 years		since

Keith Hartstein², Born: 1956		2005

President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief
Executive Officer, the Adviser and The Berkeley Group, John Hancock Funds, LLC (since 2005);
Director, MFC Global Investment Management (U.S.), LLC (“MFC Global (U.S.)”) (since 2005);
Director, John Hancock Signature Services, Inc. (since 2005); President and Chief Executive
Officer, John Hancock Investment Management Services, LLC (since 2006); President and Chief
Executive Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John
Hancock Trust,; Director, Chairman and President, NM Capital Management, Inc. (since 2005);
Chairman, Investment Company Institute Sales Force Marketing Committee (since 2003);
Director, President and Chief Executive Officer, MFC Global (U.S.) (2005-2006); Executive Vice
President, John Hancock Funds, LLC (until 2005).


John Vrysen², Born: 1955		2005

Chief Financial Officer
Director, Executive Vice President and Chief Financial Officer, the Adviser, The Berkeley Group and
John Hancock Funds, LLC (since 2005); Executive Vice President and Chief Financial Officer, John
Hancock Investment Management Services, LLC (since 2005), Vice President and Chief Financial
Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since
2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III,
John Hancock Trust (since 2005); Vice President and General Manager, Fixed Annuities, U.S. Wealth
Management (until 2005); Vice President, Operations Manulife Wood Logan (2000-2004).


Francis V. Knox², Jr., Born: 1947		2005

Vice President and Chief Compliance Officer, John Hancock Investment Management Services,
LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock
Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice
President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics
& Compliance Officer, Fidelity Investments (until 2001).

Principal officers who are not Trustees (continued)

Name, age
*Position(s) held with Portfolio*	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since

Gordon Shone², Born: 1956	2005

Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and John
Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003-2005);
Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President, John
Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC (since 2006), The
Manufacturers Life Insurance Company (U.S.A.) (1998 to 2000).


Thomas M. Kinzler², Born: 1955	2006

Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006);
Secretary and Chief Legal Officer, John Hancock Funds, John Hancock Funds II, John Hancock
Funds III and John Hancock Trust (since 2006); Vice President and Associate General Counsel for
Massachusetts Mutual Life Insurance Company (1999-2006); Secretary and Chief Legal Counsel
for MML Series Investment Fund (2000-2006); Secretary and Chief Legal Counsel for MassMutual
Institutional Funds (2000-2004); Secretary and Chief Legal Counsel for MassMutual Select Funds
and MassMutual Premier Funds (2004-2006).

¹Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his successor is duly elected and qualified or until he dies, retires, resigns, is removed or becomes disqualified.

²Affiliated with the investment adviser.

³Non-Independent Trustee: holds positions with the Fund’s investment adviser, underwriter, and/ or certain other affiliates.

For more information

The Portfolio’s proxy voting policies, procedures and records are available without charge, upon request:

By phone	On the Portfolio’s Web site	On the SEC’s Web site
1-800-225-5291	www.jhfunds.com/proxy	www.sec.gov


Investment adviser	Custodian	Legal counsel
John Hancock Investment	State Street Bank & Trust Co.	Kirkpatrick & Lockhart
Management Services, LLC	2 Avenue de Lafayette	Nicholson Graham LLP
601 Congress Street	Boston, MA 02111	1 Lincoln Street
Boston, MA 02210-2805		Boston, MA 02111
	Transfer agent
Principal distributor	John Hancock Signature	Independent registered
John Hancock Funds, LLC	Services, Inc.	public accounting firm
601 Congress Street	1 John Hancock Way,	PricewaterhouseCoopers LLP
Boston, MA 02210-2805	Suite 1000	125 High Street
	Boston, MA 02217-1000	Boston, MA 02110

Each underlying fund’s accounting policies are outlined in the underlying fund’s shareholder report, available without charge by calling 1-800-344-1029 or on the Securities and Exchange Commission (“SEC”) Web site at www.sec.gov, File # 811-21779, CIK 0001331971.

The Portfolio’s investment objective, risks, charges and expenses are included in the prospectus and should be considered carefully before investing. For a prospectus, call your financial professional, call John Hancock Funds at 1-800-225-5291 or visit the Portfolio’s Web site at www.jhfunds.com. Please read the prospectus carefully before investing or sending money.

How to contact us


Internet	www.jhfunds.com


Mail	Regular mail:	Express mail:
	John Hancock	John Hancock
	Signature Services, Inc.	Signature Services, Inc.
	1 John Hancock Way, Suite 1000	Mutual Fund Image Operations
	Boston, MA 02217-1000	380 Stuart Street
		Boston, MA 02116
Phone	Customer service representatives	1-888-225-5291
	24-hour automated information	1-800-338-8080
	TDD line	1-800-554-6713

A listing of month-end portfolio holdings is available on our Web site, www.jhfunds.com. A more detailed portfolio holdings summary is available on a quarterly basis 60 days after the fiscal quarter on our Web site or upon request by calling 1-800-225-5291, or on the Securities and Exchange Commission’s Web site, www.sec.gov.

J O H N H A N C O C K F A M I L Y O F F U N D S

EQUITY	INTERNATIONAL
Balanced Fund	Greater China Opportunities Fund
Classic Value Fund	International Classic Value Fund
Classic Value Fund II	International Core Fund
Core Equity Fund	International Fund
Focused Equity Fund	International Growth Fund
Growth Fund
Growth Opportunities Fund	INCOME
Growth Trends Fund	Bond Fund
Intrinsic Value Fund	Government Income Fund
Large Cap Equity Fund	High Yield Fund
Large Cap Select Fund	Investment Grade Bond Fund
Mid Cap Equity Fund	Strategic Income Fund
Mid Cap Growth Fund
Multi Cap Growth Fund	TAX-FREE INCOME
Small Cap Equity Fund	California Tax-Free Income Fund
Small Cap Fund	High Yield Municipal Bond Fund
Small Cap Intrinsic Value Fund	Massachusetts Tax-Free Income Fund
Sovereign Investors Fund	New York Tax-Free Income Fund
U.S. Core Fund	Tax-Free Bond Fund
U.S. Global Leaders Growth Fund
Value Opportunities Fund	MONEY MARKET
	Money Market Fund
ASSET ALLOCATION & LIFESTYLE	U.S. Government Cash Reserve
Allocation Core Portfolio
Allocation Growth + Value Portfolio	CLOSED-END
Lifestyle Aggressive Portfolio	Bank & Thrift Opportunity
Lifestyle Balanced Portfolio	Financial Trends
Lifestyle Conservative Portfolio	Income Securities
Lifestyle Growth Portfolio	Investors Trust
Lifestyle Moderate Portfolio	Patriot Global Dividend
	Patriot Preferred Dividend
SECTOR	Patriot Premium Dividend I
Financial Industries Fund	Patriot Premium Dividend II
Health Sciences Fund	Patriot Select Dividend
Real Estate Fund	Preferred Income
Regional Bank Fund	Preferred Income II
Technology Fund	Preferred Income III
Technology Leaders Fund	Tax-Advantaged Dividend

For more complete information on any John Hancock Fund and a prospectus, which includes charges and expenses, call your financial professional, or John Hancock Funds at 1-800-225-5291. Please read the prospectus carefully before investing or sending money.

1-800-225-5291
1-800-554-6713 (TDD)
1-800-338-8080 EASI-Line

www.jhfunds.com

Now available: electronic delivery
www.jhfunds.com/edelivery

This report is for the information of the shareholders of John Hancock Lifestyle Agressive Portfolio.

9600A 8/06
10/06

TABLE OF CONTENTS

Managers' report

page 2

A look at performance

page 6

Your expenses

page 8

Portfolio’s investments

page 10

Financial statements

page 12

Trustees and officers

page 33

For more information

page 40

CEO corner

To Our Shareholders,

The future has arrived at John Hancock Funds.

Our new site sports fresher and faster ways to access account information. New innovations allow investors to view funds by risk level, track the performance of the John Hancock funds of their choice or sort funds by Morningstar, Inc.’s star ratings. Investors who own a John Hancock fund through a qualified retirement plan and don’t pay sales charges when making a purchase have the option of sorting by a “Load Waived” Morningstar Rating, thereby creating an apples-to-apples comparison with no-load funds that may also be available in their retirement plan.

The new site also has more educational tools and interactive modules to educate and assist investors with their financial goals, from college savings to retirement planning. A new “I want to…” feature allows investors to check performance, invest more money, update personal information or download prospectuses and forms quickly and easily.

In another of our ongoing efforts to provide our shareholders with top-notch service, we also redesigned our shareholder reports, as you may have noticed with this report. We hope the larger size, more colorful cover and redesigned presentation of the commentary and data tables will draw you in and make them easier to read.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of August 31, 2006. They are subject to change
at any time.

Your portfolio at a glance

The Portfolio seeks a balance between a high level of current income and growth of capital, with greater emphasis on growth of capital. To pursue this goal, the Portfolio, which is a fund-of-funds, normally invests approximately 40% of its assets in underlying funds that invest primarily in fixed-income securities and approximately 60% of its assets in underlying funds that invest primarily in equity securities.

Since inception*

► Across all asset classes, financial markets gained ground during the period, with nearly
all of the Portfolio’s underlying funds performing positively.

► The Portfolio’s allocation to international and natural resources funds was a big
positive, while U.S. large-cap growth and core funds lagged the S&P 500 Index.

► We initiated several allocation shifts to increase the Portfolio’s diversification, establishing
new positions in the high-yield bond and global real estate securities asset classes.

Target asset allocation
Equity	% of Total	Fixed Income	% of Total

U.S. Large Cap	36.0	High Yield Bond	13.0

International	10.0	Intermediate Term Bond	9.0

Real Estate	5.0	Multi-Sector Bond	9.0

Natural Resources	4.0	Treasury Inflation Protected Securities	5.0

U.S. Small Cap	3.0	Global Bond	3.0

International Small Cap	2.0

U.S. Mid Cap	1.0

Managers’ report

John Hancock

Lifestyle Balanced Portfolio

The broad U.S. equity market turned in a respectable performance during the reporting period, as the S&P 500 Index gained 11.44% . These results came despite a sharp May/June downturn, which resulted from worries about slowing corporate earnings, fears of rising inflation and the expectation for further rate hikes from the U.S. Federal Reserve. Large-capitalization U.S. stocks again lagged their mid-cap counterparts, which in turn underperformed small caps — although the performance gap between large and small stocks finally began to narrow during the period. Once again, one trend that remained the same across all U.S. market-capitalization ranges: value stocks continued to outshine growth stocks, despite several brief periods during which growth took the lead.

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE. . . AND WHAT’S BEHIND THE NUMBERS

International Core (GMO)	▲	Strong international stock performance and favorable currency
		movements added to results.
Non-traditional	▲	The Portfolio benefited greatly from our investments in
asset classes		natural resources and real estate securities funds.
U.S. Multi-Sector (GMO)	▼	Emphasis on certain higher-quality large-cap growth stocks detracted
		from performance.

From The MFC Global Investment Management (U.S.A.), LLC’s
Portfolio Management Team

demand for commodities, coupled with relatively tight supplies. Real estate securities also gained ground, helped by continued strong fundamentals and investors’ demand for yield.

Fixed-income securities — which make up approximately 40% of the Portfolio’s assets — generally gained ground but produced mediocre results, with the broad bond market returning 3.33%, as measured by the Lehman Brothers Aggregate Bond Index. A steady stream of interest rate increases from the Federal Reserve Board weighed on bonds’ results. On August 31, 2006, the federal funds rate stood at 5.25%, up from 3.75% the previous October. Once again, the strongest performers in the fixed-income market were lower-rated, higher-yielding bonds, which benefited as credit spreads — the difference in yield among bonds of various credit quality — continued to narrow.

“Particularly strong results came
from the Portfolio’s international
investments...”

Performance results

John Hancock Lifestyle Balanced Portfolio’s Class A, Class B, Class C, Class R3, Class R4 and Class R5, which began operations on October 18, 2005, producd total returns of 9.08%, 8.47%, 8.55%, 8.92%, 9.19% and 9.39%, respectively, at net asset value through August 31, 2006. Class 1 shares returned 9.47% at net asset value since beginning operation October 15, 2005 and Class 5 shares returned 2.23% at net asset value since beginning operation July 3, 2006. In comparison, the Portfolio’s benchmark, the 60% S&P 500/40% Lehman Brothers Aggregate Bond combined index, returned 7.34%, and Morningstar’s average moderate allocation fund returned 9.42% .¹ Keep in mind that your net asset value return will be different from the Portfolio’s performance if you were not invested in the Portfolio for the entire period and did not reinvest all distributions. Please see pages six and seven f or historical performance information.

Lifestyle Balanced Portfolio

International gains

Particularly strong results came from the Portfolio’s international investments, with International Core (+22.19%, GMO) and International Opportunities (+23.51%, Marsico) performing especially well. In addition, we benefited significantly from our exposure to the natural resources asset class through a 4% position in Natural Resources (+24.62%, Wellington). The Portfolio’s weighting in natural resources has declined somewhat relative to our benchmark, as these stocks have performed well and grown to occupy a larger portion of the index.

On the Portfolio’s domestic equity side, we were most helped by a number of our large-cap value-oriented investments. For example, Fundamental Value (+10.87%, Davis) enjoyed very strong results, while Equity Income (+13.54%, T. Rowe Price) also generated solid gains. By contrast, the Portfolio’s large-cap core and growth-oriented investments tended to lag in a market environment that continued to favor value and small-cap stocks. The GMO-managed U.S. Multi-Sector — at 6% our third-largest weighting — gained 4.25% . Core Equity (+3.63%, Legg Mason) also failed to keep pace with the S&P 500.

Portfolio changes

In the fixed-income portion of the Portfolio, we sought to further diversify our high-yield bond exposure. We reduced our exposure to the High Yield fund, which was formerly managed by Salomon Brothers Asset Management and is now managed by Western Asset Management. We reallocated part of these assets to a new fund, High Income, managed by MFC Global Investment Management (U.S.), LLC. We also added to our weighting in U.S. High Yield Bond, managed by Wells Capital Management.

Within the real estate asset class, we increased diversification by adding exposure to non-U.S. real estate securities. Because the real estate market outside the United States is less well developed, we believe it offers greater inefficiency and therefore greater return potential. We established a new allocation to Global Real Estate, managed by Deutsche Asset Management. At period end, the Portfolio maintained a 5% overall allocation to real estate securities.

Lifestyle Balanced Portfolio

Outlook

We believe the stage may be set for high-quality large-cap stocks to finally take the lead over their mid- and small-cap counterparts. Accordingly, we have positioned the Portfolio to benefit from such a potential scenario, maintaining a slight overweight in funds that own high-quality, large-cap stocks. If, however, investors continue their preference for higher-risk, lower-quality asset classes, we believe our broadly diversified Portfolio can help capture these performance gains while effectively managing volatility for our shareholders.

“On the Portfolio’s domestic equity side,
we were most helped by a number
of our large-cap value-oriented
investments.”

On the fixed-income side of the Portfolio, bonds have encountered some difficulty, although our exposure to the strong-performing high yield category helped make up for some of the sluggish results turned in by investment-grade offerings. This is a great example of why diversification works. When certain types of investments are performing poorly, others may help pick up the slack — improving results and reducing volatility at the same time. These important diversification benefits are one of the prime advantages provided by the Portfolio — and a key reason why we believe it can be an important component of a balanced investor’s portfolio.

¹ Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

² As a percentage of net assets on August 31, 2006.

Lifestyle Balanced Portfolio

A look at performance

For the period ending August 31, 2006

		Cumulative total returns
		with maximum sales charge (POP)

	Inception	Since
Class	date	inception^a

A	10-18-05	3.65%

B	10-18-05	3.47

C	10-18-05	7.55

R3 ^b	10-18-05	8.92

R4 ^b	10-18-05	9.19

R5 ^b	10-18-05	9.39

1 ^b	10-15-05	9.47

5 ^b	7-3-06	2.23

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Portfolio’s performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable.

Since inception performance is calculated with an opening price (prior day’s close) on the inception date.

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05 and Class 5 shares began operation on 7-3-06.

^b For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5, Class 1 and Class 5 share prospectuses.

Lifestyle Balanced Portfolio

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in a blended index.

Class	Period beginning	Without sales charge	With maximum sales charge	Index

B ²	10-18-05	$10,847	$10,347	$10,734

C ²	10-18-05	10,855	10,755	10,734

R3 ^1,2	10-18-05	10,892	10,892	10,734

R4 ^1,2	10-18-05	10,919	10,919	10,734

R5 ^1,2	10-18-05	10,939	10,939	10,734

1 ^1,3	10-15-05	10,947	10,947	10,393

5 ^1,4	7-03-06	10,223	10,223	10,297

Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Portfolio’s Class B, Class C, Class R3, Class R4, Class R5, Class 1 and Class 5 shares, respectively, as of August 31, 2006. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

A blended index is used combining 60% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 40% of the Lehman Brothers Aggregate Bond Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

¹ For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5, Class 1 and Class 5 share prospectuses.

² Index figure from 10-31-05. ³ Index figure from 9-30-05. ⁴ Index figure from 6-30-06.

Lifestyle Balanced Portfolio

Your expenses

These examples are intended to help you understand your ongoing operating expenses.

Understanding Portfolio expenses

As a shareholder of the Portfolio, you incur two types of costs:

▪ Transaction costs which include sales charges (loads) on purchases or redemptions
(varies by share class), minimum account fee charge, etc.

▪ Ongoing operating expenses including management fees, distribution and service
fees (if applicable) and other Portfolio expenses.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

This example is intended to provide information about your Portfolio’s actual ongoing operating expenses, and is based on your Portfolio’s actual return. It assumes an account value of $1,000.00 on March 1, 2006, with the same investment held until August 31, 2006.

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06^a

Class A	$1,000.00	$1,015.70	$2.90

Class B	1,000.00	1,012.10	6.80

Class C	1,000.00	1,012.10	6.54

Class R3	1,000.00	1,015.30	3.45

Class R4	1,000.00	1,016.60	2.39

Class R5	1,000.00	1,017.90	0.86

Class 1	1,000.00	1,018.40	0.56

Class 5^b	1,000.00	1,022.30	0.02

Lifestyle Balanced Portfolio

Hypothetical example for comparison purposes

This table allows you to compare your Portfolio’s ongoing operating expenses with those of any other fund. It provides an example of the Portfolio’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annual return before expenses (which is not your Portfolio’s actual return). It assumes an account value of $1,000.00 on March 1, 2006, with the same investment held until August 31, 2006. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06^a

Class A	$1,000.00	$1,022.33	$2.91

Class B	1,000.00	1,018.45	6.82

Class C	1,000.00	1,018.70	6.56

Class R3	1,000.00	1,021.78	3.47

Class R4	1,000.00	1,022.84	2.40

Class R5	1,000.00	1,024.35	0.87

Class 1	1,000.00	1,024.65	0.56

Class 5^b	1,000.00	1,008.20	0.02

^a Expenses are equal to the Portfolio's annualized expense ratio of 0.57%, 1.34%, 1.29%, 0.68%, 0.47%, 0.17%, 0.11% and 0.01% for Class A, Class B, Class C, Class R3, Class R4, Class R5, Class 1 and Class 5, respectively, multiplied by the average account value over the period, multiplied by the number of days in the period /365 or 366 (to reflect the one-half year period). The expense ratios do not include fees and expenses incurred by the Portfolio from the underlying funds.

^b Class 5 shares began operation on 7-3-06.

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Portfolio’s investments

Securities owned by the Portfolio on 8-31-06

Portfolio of investments, showing all underlying funds.

Issuer	Shares	Value

Investment Companies 99.97%		$6,927,396,432

(Cost $6,631,187,391)
John Hancock Funds II

Active Bond Fund Class NAV	14,348,698	$137,747,499

All Cap Core Fund Class NAV	13,949,346	138,377,511

Blue Chip Growth Fund Class NAV	31,187,742	555,141,800

Core Bond Fund Class NAV	11,009,165	137,724,650

Core Equity Fund Class NAV	14,775,230	210,842,537

Equity-Income Fund Class NAV	11,450,490	207,368,378

Fundamental Value Fund Class NAV	13,044,559	206,495,371

Global Bond Fund Class NAV	13,973,572	206,669,135

Global Real Estate Fund Class NAV	20,365,152	209,761,062

High Income Fund Class NAV	13,960,804	137,793,132

High Yield Fund Class NAV	61,755,028	622,490,683

International Opportunities Fund Class NAV	8,635,136	139,543,804

International Small Cap Fund Class NAV	6,612,982	138,541,979

International Value Fund Class NAV	15,561,937	278,247,438

Large Cap Fund Class NAV	4,716,545	69,191,713

Large Cap Value Fund Class NAV	5,962,792	137,203,834

Mid Cap Stock Fund Class NAV	4,428,541	70,103,806

Natural Resources Fund Class NAV	7,738,262	275,482,140

Quantitative Value Fund Class NAV	4,173,449	69,112,316

Real Estate Equity Fund Class NAV	12,751,108	140,134,673

Real Return Bond Fund Class NAV	25,973,686	345,969,503

Small Cap Fund Class NAV	5,025,819	70,562,505

Small Cap Opportunities Fund Class NAV	3,014,427	69,753,843

Small Company Value Fund Class NAV	2,978,978	70,393,247

Spectrum Income Fund Class NAV	33,620,812	345,285,740

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Issuer	Shares	Value
John Hancock Funds II — continued

Strategic Bond Fund Class NAV	11,694,497	$137,644,230

Strategic Income Fund Class NAV	13,690,046	137,721,862

Strategic Value Fund Class NAV	12,711,120	138,551,204

Total Return Fund Class NAV	25,123,452	345,447,469

U.S. Global Leaders Growth Fund Class NAV	16,419,986	208,205,417

U.S. High Yield Bond Fund Class NAV	10,536,141	137,496,640

U.S. Multi Sector Fund Class NAV	40,079,468	417,227,265

Value & Restructuring Fund Class NAV	12,513,767	138,652,533
John Hancock Funds III

International Core Fund Class NAV	7,021,623	276,511,513


Total investments 99.97%		$6,927,396,432


Other assets in excess of liabilities 0.03%		$1,754,554


Total net assets 100.00%		$6,929,150,986

Percentages are stated as a percent of net assets of the Portfolio.

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial statements

Statement of assets and liabilities 8-31-06

This Statement of Assets and Liabilities is the Portfolio’s balance sheet. It shows the value
of what the Portfolio owns, is due and owes. You’ll also find the net asset value and the
maximum offering price per share.

Assets
Investments in affiliated funds, at value (cost $6,631,187,391)	$6,927,396,432
Cash	757
Receivable for fund shares sold	4,465,161
Other assets	24,443
Total assets	6,931,886,793

Liabilities

Payable for investments purchased	1,897,476
Payable for fund shares repurchased	131,436
Payable to affiliates
Fund administration fees	115,694
Transfer agent fees	68,377
Trustees’ fees	1,427
Due to adviser	124,205
Other payables and accrued expenses	397,192
Total liabilities	2,735,807

Net assets

Capital paid-in	6,508,086,961
Accumulated net realized gain on investments	116,596,537
Net unrealized appreciation on investments	296,209,041
Accumulated net investment income	8,258,447
Net assets	$6,929,150,986

Net asset value per share

Based on net asset values and shares outstanding
— the Portfolio has an unlimited number of shares authorized with no par value
Class A ($81,185,685 ÷ 5,644,101 shares)	$14.38
Class B ($20,096,137 ÷ 1,398,616 shares)	$14.37
Class C ($79,060,371 ÷ 5,496,929 shares)	$14.38
Class R3 ($2,708,241 ÷ 188,421 shares)	$14.37
Class R4 ($7,180,835 ÷ 499,386 shares)	$14.38
Class R5 ($1,422,097 ÷ 98,876 shares)	$14.38
Class 1 ($6,736,347,049 ÷ 469,674,868 shares)	$14.34
Class 5 ($1,150,571 ÷ 80,205 shares)	$14.35

Maximum offering price per share

Class A¹($14.38 ÷ 95%)	$15.14

¹ 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

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of operations For the period ended 8-31-06^a

This Statement of Operations summarizes the Portfolio’s investment income earned and
expenses incurred in operating the Portfolio. It also shows net gains (losses) for the
period stated.

Investment income
Income distributions received from affiliated underlying funds	$100,574,302

Total investment income	100,574,302

Expenses

Investment management fees (Note 3)	2,203,879
Distribution and service fees (Note 3)	3,010,082
Transfer agent fees (Note 3)	96,586
Blue sky fees (Note 3)	108,068
Printing and postage fees (Note 3)	114,386
Fund administration fees (Note 3)	452,525
Audit and legal fees	175,565
Custodian fees	12,619
Trustees’ fees (Note 3)	62,341
Registration and filing fees	197,349
Miscellaneous	49,624

Total expenses	6,483,024
Less expense reductions (Note 3)	(153,974)

Net expenses	6,329,050

Net investment income	94,245,252

Realized and unrealized gain

Net realized gain on investments	117,969,301
Capital gain distributions received from affiliated underlying funds	9,368,289
Change in net unrealized appreciation of investments	296,209,041
Net realized and unrealized gain	423,546,631
Increase in net assets from operations	$517,791,883

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of changes in net assets

This Statement of Changes in Net Assets shows how the value of the Portfolio’s net
assets has changed during the period. It reflects earnings less expenses, any investment
gains and losses, distributions, if any, paid to shareholders and the net of Portfolio
share transactions.

	Period
	ended_a
	8-31-06

Increase (decrease) in net assets

From operations
Net investment income	$94,245,252
Net realized gain	127,337,590
Change in net unrealized appreciation	296,209,041

Increase in net assets resulting from operations	517,791,883

Distributions to shareholders
From net investment income
Class A	(428,612)
Class B	(57,145)
Class C	(203,872)
Class R3	(15,304)
Class R4	(26,987)
Class R5	(15,130)
Class 1	(95,206,787)
Class 5	(347)
From net realized gain
Class A	(1,728)
Class B	(612)
Class C	(1,299)
Class R3	(26)
Class R4	(26)
Class R5	(123)
Class 1	(1,411,319)
	(97,369,317)
From Fund share transactions	6,508,728,420

Net assets
End of period	$6,929,150,986

Accumulated net investment income	$8,258,447

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

The Financial Highlights show how the Portfolio’s net asset value for a share has changed since the beginning of the period.

CLASS A SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.19
Net realized and unrealized
gain on investments	1.01

Total from investment operations	1.20

Less distributions
From net investment income	(0.17)
From net realized gain	—^j
	(0.17)
Net asset value, end of period	$14.38
Total return ^k,l(%)	9.08^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$81
Ratio of net expenses to average
net assets ^q(%)	0.58^r
Ratio of gross expenses to average
net assets ^p,q(%)	0.70^r
Ratio of net investment income
to average net assets ^v(%)	1.60^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.10
Net realized and unrealized
gain on investments	1.02

Total from investment operations	1.12

Less distributions
From net investment income	(0.10)
From net realized gain	—^j
	(0.10)
Net asset value, end of period	$14.37
Total return ^k,l(%)	8.47^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$20
Ratio of net expenses to average
net assets ^q(%)	1.34^r
Ratio of gross expenses to average
net assets ^p,q(%)	1.73^r
Ratio of net investment income
to average net assets ^v(%)	0.84^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.12
Net realized and unrealized
gain on investments	1.01

Total from investment operations	1.13

Less distributions
From net investment income	(0.10)
From net realized gain	—^j
	(0.10)
Net asset value, end of period	$14.38
Total return ^k,l(%)	8.55^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$79
Ratio of net expenses to average
net assets ^q(%)	1.29^r
Ratio of gross expenses to average
net assets ^p,q(%)	1.41^r
Ratio of net investment income
to average net assets ^v(%)	0.97^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R3 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.36
Net realized and unrealized
gain on investments	0.82

Total from investment operations	1.18

Less distributions
From net investment income	(0.16)
From net realized gain	—^j
	(0.16)
Net asset value, end of period	$14.37
Total return ^k,l(%)	8.92^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$3
Ratio of net expenses to average
net assets ^q(%)	0.69^r
Ratio of gross expenses to average
net assets ^p,q(%)	3.70^r
Ratio of net investment income
to average net assets ^v(%)	3.10^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R4

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.16
Net realized and unrealized
gain on investments	1.06

Total from investment operations	1.22

Less distributions
From net investment income	(0.19)
From net realized gain	—^j
	(0.19)
Net asset value, end of period	$14.38
Total return ^k,l(%)	9.19^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$7
Ratio of net expenses to average
net assets ^q(%)	0.48^r
Ratio of gross expenses to average
net assets ^p,q(%)	1.46^r
Ratio of net investment income
to average net assets ^v(%)	1.37^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R5

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.18
Net realized and unrealized
gain on investments	1.06

Total from investment operations	1.24

Less distributions
From net investment income	(0.21)
From net realized gain	—^j
	(0.21)
Net asset value, end of period	$14.38
Total return ^k,l(%)	9.39^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.19^r
Ratio of gross expenses to average
net assets ^p,q(%)	2.58^r
Ratio of net investment income
to average net assets ^v(%)	1.48^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 1 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.31
Net investment income ^h,v	0.22
Net realized and unrealized
gain on investments	1.03

Total from investment operations	1.25

Less distributions
From net investment income	(0.22)
From net realized gain	—^j
	(0.22)
Net asset value, end of period	$14.34
Total return ^k(%)	9.47^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$6,736
Ratio of net expenses to average
net assets ^q(%)	0.11^r
Ratio of net investment income
to average net assets ^v(%)	1.81^r
Portfolio turnover (%)	23^m

See notes to financial statements

Lifestyle Balanced Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 5 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$14.17
Net investment loss ^h,v	—^j
Net realized and unrealized
gain on investments	0.31

Total from investment operations	0.31

Less distributions
From net investment income	(0.13)
	(0.13)
Net asset value, end of period	$14.35
Total return ^k(%)	2.23^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.01^r
Ratio of net investment loss
to average net assets ^v(%)	(0.01)^r
Portfolio turnover (%)	23^m

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05, and Class 5 shares began operation on 7-3-06.

^h Based on the average of the shares outstanding.

^j Less than $0.01 per share.

^k Assumes dividend reinvestment and does not reflect the effect of sales charges.

^l Total returns would have been lower had certain expenses not been reduced during the period shown.

^m Not annualized.

^p Does not take into consideration expense reductions during the period shown.

^q Does not include expenses of the investment companies in which the Portfolio invests.

^r Annualized.

^v Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

See notes to financial statements

Lifestyle Balanced Portfolio

Notes to financial statements

1. Organization

The John Hancock Lifestyle Balanced Portfolio (the “Portfolio”) is a newly organized non-diversified series of John Hancock Funds II (the “Trust”). The Trust was established as a Massachusetts business trust on June 28, 2005. The Trust is registered under the Investment Company Act of 1940 as amended (the “1940 Act”), as an open-end investment management company.

The Portfolio operates as a “fund of funds”, investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III and in other permitted investments.

John Hancock Investment Management Services, LLC (the “Adviser”), a Delaware limited liability company controlled by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”), serves as investment adviser for the Trust and John Hancock Funds, LLC, (the “Distributor”), an affiliate of the Adviser, serves as the principal underwriter. John Hancock Life Insurance Company of New York (“John Hancock New York”) is a wholly owned subsidiary of John Hancock USA. John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (“Manulife”), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

The Portfolio commenced operations after certain separate accounts of John Hancock USA redeemed their interests in portfolios of John Hancock Trust and certain unaffiliated mutual funds of approximately $1.2 billion at the close of business on October 14, 2005, with additional redemption proceeds of approximately $4.2 billion received on October 28, 2005, and invested such proceeds in Class 1 shares of the Portfolio, which in turn invested the proceeds in underlying funds of the Trust.

2. Significant accounting policies

Lifestyle Balanced Portfolio

Securities valuation

Security transactions and related
investment income

Investment security transactions in the underlying funds are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income and captial gain distributions are recorded on the ex-dividend date.

Gains and losses on securities sold are determined on the basis of specific identified cost for both financial and federal income tax reporting purposes.

Multi-class operations

Expense allocation

Federal income taxes

New accounting pronouncement

In June 2006, Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”) was issued and is effective for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. This Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return, and requires certain expanded disclosures. Management is currently evaluating the application of the Interpretation to the Portfolio, and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on the Portfolio’s financial statements.

Distribution of income and gains

The Portfolio records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date.

Lifestyle Balanced Portfolio

During the period ended August 31, 2006, the tax character of distributions paid was as follows: ordinary income $97,369,317. Distributions paid by the Portfolio with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Portfolio’s financial statements as a return of capital. As of August 31, 2006, the components of distributable earnings on a tax basis included $124,812,862 of undistributed ordinary income and $42,122 of undistributed long-term gain.

Capital accounts

The Portfolio reports the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carryforward is available). Accordingly, the Portfolio may periodically make reclassifications among certain capital accounts, without affecting its net asset value.

3. Investment advisory and
other agreements

Advisory fees

Expense reimbursements

The Adviser has contractually agreed to waive advisory fees or reimburse the Portfolio’s expenses for Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares to the extent that blue sky fees and printing and postage expenses attributable to each class exceed 0.09% of the average annual net assets attributable to the classes, at least until November 1, 2006, and may thereafter be terminated by the Adviser at any time. Accordingly, the expense reductions related to this expense limitation amounted to $33,969, $29,026, $32,959, $18,307, $17,531 and $19,684 for Class A, Class B, Class C, Class R3, Class R4 and Class R5, respectively, for the period ended August 31, 2006.

The Adviser has contractually agreed to waive advisory fees or reimburse Portfolio expenses for Class 5 shares to the extent that total Portfolio operating expenses attributable to Class 5 exceed 0.07% of the average annual net assets attributable to Class 5. There were no expense reductions related to this expense limitation during the period ended August 31, 2006. This agreement remains in effect until June 30, 2007 and may thereafter be terminated by the Adviser at any time.

Administration fees

Distribution plans

Lifestyle Balanced Portfolio

1940 Act to reimburse the Distributor for the services it provides as distributor of shares of the Portfolio. Accordingly, the Portfolio makes monthly payments to the Distributor at an annual rate not to exceed 0.30%, 1.00%, 1.00%, 0.50%, 0.25% and 0.05% of the average daily net assets of Class A, Class B, Class C, Class R3, Class R4 and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

Sales charges

Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the period ended August 31, 2006, the Portfolio was informed that the Distributor received net up-front sales charges of $1,896,086 with regard to sales of Class A shares. Of this amount, $311,121 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $1,560,918 was paid as sales commissions to unrelated broker-dealers and $24,047 was paid as sales commissions to sales personnel of Signator Investors, Inc. (“Signator Investors”), a related broker-dealer, an indirect subsidiary of MFC.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolio in connection with the sale of Class B and Class C shares. During the period ended August 31, 2006, the Portfolio was informed that CDSCs received by the Distributor amounted to $7,025 for Class B shares and $10,157 for Class C shares.

Transfer agent fees

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of each of Class A, Class B, Class C, Class R3, Class R4 and Class R5 share average daily net assets. This agreement is effective until December 31, 2006. Signature Services reserves the right to terminate this limitation in the future. In addition, Signature Services has voluntarily agreed to further limit transfer agent fees for Class R3, Class R4 and Class R5 shares so that such fees do not exceed 0.05% annually of each class’s average daily net assets. Accordingly, the transfer agent fees reductions amounted to $501, $1,060 and $937 for Class R3, Class R4 and Class R5 shares, respectively, during the period ended August 31, 2006. Signature Services reserves the right to terminate this limitation at any time.

Lifestyle Balanced Portfolio

Expenses under the agreements described above for the period ended August 31, 2006, were as follows:

	Distribution	Transfer		Printing and
Share Class	and service fees	agent	Blue sky	postage


Class A	$83,686	$38,106	$20,586	$38,489
Class B	74,189	14,872	16,689	19,014
Class C	268,990	39,526	20,807	36,361
Class R3	3,157	809	16,074	2,802
Class R4	5,410	2,006	16,244	3,005
Class R5	5	1,267	17,668	2,798
Class 1	2,574,645	—	—	11,917
Class 5	—	—	—	—
Total	$3,010,082	$96,586	$108,068	$114,386

Trustees’ fees

The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. Total Trustees’ expenses are allocated based on each Portfolio’s average daily net asset value.

4. Guarantees and Indemnifications

5. Capital shares

Share activities for the Portfolio for the period ended August 31, 2006 were as follows:

		Period ended 8-31-06 ^a
	Shares	Amount

Class A shares

Sold	6,009,152	$85,302,501
Distributions reinvested	27,765	389,529
Repurchased	(392,816)	(5,635,273)
Net increase	5,644,101	$80,056,757


Class B shares

Sold	1,452,791	$20,544,736
Distributions reinvested	3,722	52,170
Repurchased	(57,897)	(818,019)
Net increase	1,398,616	$19,778,887


Class C shares

Sold	5,676,144	$80,561,010
Distributions reinvested	13,319	187,092
Repurchased	(192,534)	(2,732,138)
Net increase	5,496,929	$78,015,964

Lifestyle Balanced Portfolio

		Period ended 8-31-06 ^a
	Shares	Amount

Class R3 shares

Sold	246,488	$3,431,004
Distributions reinvested	1,003	14,088
Repurchased	(59,070)	(818,494)
Net increase	188,421	$2,626,598


Class R4 shares

Sold	532,830	$7,589,789
Distributions reinvested	1,821	25,583
Repurchased	(35,265)	(504,224)
Net increase	499,386	$7,111,148


Class R5 shares

Sold	102,605	$1,431,987
Distributions reinvested	974	13,638
Repurchased	(4,703)	(65,769)
Net increase	98,876	$1,379,856


Class 1 shares

Sold	468,643,365	$6,306,035,420
Distributions reinvested	6,945,128	96,618,106
Repurchased	(5,913,625)	(84,025,930)
Net increase	469,674,868	$6,318,627,596


Class 5 shares

Sold	80,813	$1,140,151
Distributions reinvested	25	347
Repurchased	(633)	(8,884)
Net increase	80,205	$1,131,614


Net increase	483,081,402	$6,508,728,420

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05, and Class 5 shares began operation on 7-3-06.

Lifestyle Balanced Portfolio

6. Investment transactions

Purchases and sales of the underlying funds, during the period ended August 31, 2006, aggregated $7,937,698,651 and $1,424,480,561, respectively.

The cost of investments owned on August 31, 2006, including short-term investments, for federal income tax purposes, was $6,631,187,391. Gross unrealized appreciation and depreciation of investments aggregated $307,249,905 and $11,040,864, respectively, resulting in net unrealized appreciation of $296,209,041.

7. Investment in affiliated
underlying funds

Affiliate —	Shares	Shares	Ending Share		Ending
Class NAV	Purchased	Sold	Amount	Proceeds	Value

500 Index	11,314,738	11,314,738	—	$128,316,617	—
Active Bond	14,355,063	6,365	14,348,698	60,699	$137,747,499
All Cap Core	13,955,620	6,274	13,949,346	61,864	138,377,511
All Cap Growth	2,334,710	2,334,710	—	36,724,984	—
All Cap Value	1,749,344	1,749,344	—	24,333,378	—
Blue Chip Growth	31,487,653	299,911	31,187,742	5,360,615	555,141,800
Capital Appreciation	2,624,011	2,624,011	—	24,613,225	—
Core Bond	11,014,021	4,856	11,009,165	60,203	137,724,650
Core Equity	14,900,468	125,238	14,775,230	1,834,740	210,842,537
Equity-Income	18,646,262	7,195,772	11,450,490	129,449,894	207,368,378
Fundamental Value	13,051,080	6,521	13,044,559	102,603	206,495,371
Global Bond	14,088,637	115,065	13,973,572	1,678,019	206,669,135
Global Real Estate	20,796,111	430,959	20,365,152	4,347,800	209,761,062
High Income	13,966,765	5,961	13,960,804	59,174	137,793,132
High Yield	80,953,018	19,197,990	61,755,028	200,427,268	622,490,683
International Core*	7,021,623	—	7,021,623	—	276,511,513
International Opportunities	9,261,503	626,367	8,635,136	10,228,004	139,543,804
International Small Cap	6,844,750	231,768	6,612,982	5,008,979	138,541,979
International Stock	21,517,914	21,517,914	—	295,831,965	—
International Value	16,080,181	518,244	15,561,937	9,153,387	278,247,438
Large Cap	4,719,052	2,507	4,716,545	35,997	69,191,713
Large Cap Value	5,966,269	3,477	5,962,792	80,451	137,203,834
Mid Cap Stock	4,430,636	2,095	4,428,541	34,891	70,103,806
Natural Resources	10,983,040	3,244,778	7,738,262	104,659,552	275,482,140
Quantitative Value	5,888,730	1,715,281	4,173,449	24,412,287	69,112,316
Real Estate Equity	13,349,729	598,621	12,751,108	6,339,202	140,134,673
Real Estate Securities	12,598,713	12,598,713	—	342,300,631	—
Real Return Bond	26,133,209	159,523	25,973,686	2,062,517	345,969,503
Small Cap	5,028,298	2,479	5,025,819	36,877	70,562,505
Small Cap Opportunities	3,040,577	26,150	3,014,427	662,156	69,753,843
Small Company Value	3,002,720	23,742	2,978,978	599,692	70,393,247
Spectrum Income	33,637,189	16,377	33,620,812	167,599	345,285,740
Strategic Bond	16,944,840	5,250,343	11,694,497	62,425,790	137,644,230
Strategic Income	13,696,275	6,229	13,690,046	62,132	137,721,862
Strategic Value	12,717,074	5,954	12,711,120	65,626	138,551,204
Total Return	25,141,548	18,096	25,123,452	245,350	345,447,469

Lifestyle Balanced Portfolio

Affiliate —	Shares	Shares	Ending Share		Ending
Class NAV	Purchased	Sold	Amount	Proceeds	Value

U.S. Global
Leaders Growth	16,427,292	7,306	16,419,986	$94,186	$208,205,417
U.S. High Yield Bond	10,540,640	4,499	10,536,141	59,061	137,496,640
U.S. Multi Sector	40,097,561	18,093	40,079,468	188,647	417,227,265
Value & Restructuring	12,709,102	195,335	12,513,767	2,294,499	138,652,533

*Represents the Portfolio’s investment in John Hancock Funds III International Core Fund

8. Reclassification of accounts

During the period ended August 31, 2006, the Portfolio reclassified amounts to reflect a decrease in accumulated net realized gain on investments of $9,325,920, an increase in accumulated net investment income of $9,967,379 and a decrease in capital paid-in of $641,459. This represents the amounts necessary to report these balances on a tax basis, excluding certain temporary differences, as of August 31, 2006. Additional adjustments may be needed in subsequent reporting periods.These reclassifications, which have no impact on the net asset value of the Portfolio, are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America and book and tax differences in accounting for non-deductible organizational costs. The calculation of net investment income per share in the Portfolio’s Financial Highlights excludes these adjus tments.

Lifestyle Balanced Portfolio

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of John Hancock Lifestyle
Balanced Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of securities owned, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of John Hancock Lifestyle Balanced Portfolio (the “Portfolio”) at August 31, 2006, and the results of its operations, the changes in its net assets, and the financial highlights for the period October 15, 2005 (commencement of operations) through August 31, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Portfolio’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2006, by correspondence with the transfer agent, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolio, if any, paid during its taxable year ended August 31, 2006.

With respect to the ordinary dividends paid by the Portfolio for the fiscal period ended August 31, 2006, 49.43% of the dividends qualify for the corporate dividends-received deduction.

The Portfolio hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2006.

Shareholders will be mailed a 2006 U.S. Treasury Department Form 1099-DIV in January 2007. This will reflect the total of all distributions that are taxable for calendar year 2006.

Trustees and Officers

This chart provides information about the Trustees and Officers who oversee your John
Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the
Portfolio and execute policies formulated by the Trustees.

Independent Trustees

Name, age		Number of
*Position(s) held with Portfolio*	Trustee	John Hancock
Principal occupation(s) and other	of Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Bardelis, Born: 1941	2005	209

President and Executive Officer, Island Commuter Corp. (Marine Transport).
Trustee of John Hancock Trust (since 1988) and John Hancock Funds III (since 2005).


Peter S. Burgess, Born: 1942	2005	209

Consultant (financial, accounting and auditing matters (since 1999);
Certified Public Accountant; Partner, Arthur Andersen (prior to 1999).
Director of the following publicly traded companies: PMA Capital Corporation
(since 2004) and Lincoln Educational Services Corporation (since 2004).
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


Elizabeth G. Cook, Born: 1937	2005	209

Expressive Arts Therapist, Massachusetts General Hospital (September 2001
to present); Expressive Arts Therapist, Dana Farber Cancer Institute
(September 2000 to January 2004); President, The Advertising Club of Greater Boston.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


William H. Cunningham, Born: 1944	2005	160

Former Chancellor, University of Texas System and former President of the
University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies
(until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting,
Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing)
(since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods
Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation
(insurance) (since 2006), Jefferson-Pilot Corporation (diversified life insurance
company) (until 2006), New Century Equity Holdings (formerly Billing Concepts)
(until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures
(until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems
Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive
Bridge, Inc. (college fundraising) (until 2001); Advisory Director, Q Investments
(until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce
Bank - Austin), LIN Television (since 2002), WilTel Communications (until 2003)
and Hayes Lemmerz International, Inc. (diversified automotive parts supply
company) (since 2003). Trustee of John Hancock Funds (since 2005) and
John Hancock Funds III (since 2005).

Independent Trustees (continued)

Name, age		Number of
*Position(s) held with Portfolio*	Trustee	John Hancock
Principal occupation(s) and other	of Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Ladner, Born: 1938	2005	160

Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003);
Senior Vice President and Chief Financial Officer, UGI Corporation (public utility
holding company) (retired 1998); Vice President and Director for AmeriGas, Inc.
(retired 1998); Director of AmeriGas Partners, L.P. (until 1997)(gas distribution);
Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association
(since 2007). Trustee of John Hancock Funds (since 2004) and John Hancock
Funds III (since 2005).


Hassell H. McClellan, Born: 1945	2005	209

Associate Professor, The Wallace E. Carroll School of Management, Boston College.
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


James. M. Oates, Born: 1946	2005	209

Managing Director, Wydown Group (financial consulting firm)(since 1994);
Chairman, Emerson Investment Management, Inc. (since 2000); Chairman,
Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services
company) (since 1997). Director of the following publicly traded companies:
Stifel Financial (since 1996); Investor Financial Services Corporation (since 1995);
and Connecticut River Bancorp, Director (since 1998). Director, Phoenix Mutual
Funds (since 1988; overseeing 20 portfolios). Trustee of John Hancock Trust
(since 2004) and John Hancock Funds III (since 2005).

Non-Independent Trustee³

Name, age		Number of
*Position(s) held with Portfolio*	Trustee	John Hancock
Principal occupation(s) and other	of Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

James R. Boyle, Born: 1959	2005	262

Chairman and Director, John Hancock Advisers, LLC (the “Adviser”), The Berkeley Financial Group, LLC
(“The Berkeley Group”) (holding company) and John Hancock Funds, LLC (since 2005); President,
John Hancock Annuities; Executive Vice President, John Hancock Life Insurance Company
(since June, 2004); President U.S. Annuities; Senior Vice President, The Manufacturers Life Insurance
Company (U.S.A) (prior to 2004).


Principal officers who are not Trustees

Name, age
*Position(s) held with Portfolio*		Officer
Principal occupation(s) and		of Portfolio
directorships during past 5 years		since

Keith Hartstein², Born: 1956		2005

President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive
Officer, the Adviser and The Berkeley Group, John Hancock Funds, LLC (since 2005); Director, MFC Global
Investment Management (U.S.), LLC (“MFC Global (U.S.)”) (since 2005); Director, John Hancock Signature
Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock Investment Management
Services, LLC (since 2006); President and Chief Executive Officer, John Hancock Funds, John Hancock
Funds II, John Hancock Funds III, John Hancock Trust,; Director, Chairman and President, NM Capital
Management, Inc. (since 2005); Chairman, Investment Company Institute Sales Force Marketing
Committee (since 2003); Director, President and Chief Executive Officer, MFC Global (U.S.) (2005-2006);
Executive Vice President, John Hancock Funds, LLC (until 2005).


John Vrysen², Born: 1955		2005

Chief Financial Officer
Director, Executive Vice President and Chief Financial Officer, the Adviser, The Berkeley Group and
John Hancock Funds, LLC (since 2005); Executive Vice President and Chief Financial Officer, John Hancock
Investment Management Services, LLC (since 2005), Vice President and Chief Financial Officer, MFC
Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial
Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust (since
2005); Vice President and General Manager, Fixed Annuities, U.S. Wealth Management (until 2005);
Vice President, Operations Manulife Wood Logan (2000-2004).


Francis V. Knox, Jr.², Born: 1947		2005

Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC,
the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock Funds, John
Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and
Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics & Compliance Officer,
Fidelity Investments (until 2001).

Principal officers who are not Trustees (continued)

Name, age
*Position(s) held with Portfolio*	Officer
Principal occupation(s) and	of Portfolio
directorships during past 5 years	since

Gordon Shone², Born: 1956	2005

Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and
John Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust
(2003-2005); Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001);
Vice President, John Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC
(since 2006), The Manufacturers Life Insurance Company (U.S.A.) (1998 to 2000).


Thomas M. Kinzler², Born: 1955	2006

Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and
Chief Legal Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock
Trust (since 2006); Vice President and Associate General Counsel for Massachusetts Mutual Life Insurance
Company (1999-2006); Secretary and Chief Legal Counsel for MML Series Investment Fund (2000-2006);
Secretary and Chief Legal Counsel for MassMutual Institutional Funds (2000-2004); Secretary and Chief
Legal Counsel for MassMutual Select Funds and MassMutual Premier Funds (2004-2006).

²Affiliated with the investment adviser.

³Non-Independent Trustee: holds positions with the Fund’s investment adviser, underwriter, and/ or certain other affiliates.

For more information

The Portfolio’s proxy voting policies, procedures and records are available without charge,
upon request:

By phone	On the Portfolio’s Web site	On the SEC’s Web site
1-800-225-5291	www.jhfunds.com/proxy	www.sec.gov


Investment adviser	Custodian	Legal counsel
John Hancock Investment	State Street Bank & Trust Co.	Kirkpatrick & Lockhart
Management Services, LLC	2 Avenue de Lafayette	Nicholson Graham LLP
601 Congress Street	Boston, MA 02111	1 Lincoln Street
Boston, MA 02210-2805		Boston, MA 02111
	Transfer agent
Principal distributor	John Hancock Signature	Independent registered
John Hancock Funds, LLC	Services, Inc.	public accounting firm
601 Congress Street	1 John Hancock Way,	PricewaterhouseCoopers LLP
Boston, MA 02210-2805	Suite 1000	125 High Street
	Boston, MA 02217-1000	Boston, MA 02110

How to contact us


Internet	www.jhfunds.com


Mail	Regular mail:	Express mail:
	John Hancock	John Hancock
	Signature Services, Inc.	Signature Services, Inc.
	1 John Hancock Way, Suite 1000	Mutual Fund Imaging Operations
	Boston, MA 02217-1000	380 Stuart Street
		Boston, MA 02116


Phone	Customer service representatives	1-800-225-5291
	24-hour automated information	1-800-338-8080
	TDD line	1-800-554-6713

J O H N H A N C O C K F A M I L Y O F F U N D S

EQUITY	INTERNATIONAL
Balanced Fund	Greater China Opportunities Fund
Classic Value Fund	International Classic Value Fund
Classic Value Fund II	International Core Fund
Core Equity Fund	International Fund
Focused Equity Fund	International Growth Fund
Growth Fund
Growth Opportunities Fund	INCOME
Growth Trends Fund	Bond Fund
Intrinsic Value Fund	Government Income Fund
Large Cap Equity Fund	High Yield Fund
Large Cap Select Fund	Investment Grade Bond Fund
Mid Cap Equity Fund	Strategic Income Fund
Mid Cap Growth Fund
Multi Cap Growth Fund	TAX-FREE INCOME
Small Cap Equity Fund	California Tax-Free Income Fund
Small Cap Fund	High Yield Municipal Bond Fund
Small Cap Intrinsic Value Fund	Massachusetts Tax-Free Income Fund
Sovereign Investors Fund	New York Tax-Free Income Fund
U.S. Core Fund	Tax-Free Bond Fund
U.S. Global Leaders Growth Fund
Value Opportunities Fund	MONEY MARKET
	Money Market Fund
ASSET ALLOCATION & LIFESTYLE	U.S. Government Cash Reserve
Allocation Core Portfolio
Allocation Growth + Value Portfolio	CLOSED-END
Lifestyle Aggressive Portfolio	Bank & Thrift Opportunity
Lifestyle Balanced Portfolio	Financial Trends
Lifestyle Conservative Portfolio	Income Securities
Lifestyle Growth Portfolio	Investors Trust
Lifestyle Moderate Portfolio	Patriot Global Dividend
	Patriot Preferred Dividend
SECTOR	Patriot Premium Dividend I
Financial Industries Fund	Patriot Premium Dividend II
Health Sciences Fund	Patriot Select Dividend
Real Estate Fund	Preferred Income
Regional Bank Fund	Preferred Income II
Technology Fund	Preferred Income III
Technology Leaders Fund	Tax-Advantaged Dividend

1-800-225-5291
1-800-554-6713 (TDD)
1-800-338-8080 EASI-Line

www.jhfunds. com

Now available: electronic delivery
www.jhfunds. com/edelivery

This report is for the information of the shareholders of John Hancock Lifestyle Balanced Portfolio.

0700A 8/06
10/06

TABLE OF CONTENTS

Managers' report

page 2

A look at performance

page 6

Your expenses

page 8

Portfolio’s investments

page 10

Financial statements

page 12

Trustees and officers

page 31

For more information

page 36

CEO corner

To Our Shareholders,

The future has arrived at John Hancock Funds.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of August 31, 2006. They are subject to change
at any time.

Your portfolio at a glance

The Portfolio seeks a balance between a high level of current income and growth of capital, with a greater emphasis on income. To pursue this goal, the Portfolio, which is a fund-of-funds, normally invests approximately 80% of its assets in underlying funds that invest primarily in fixed-income securities and approximately 20% of its assets in underlying funds that invest primarily in equity securities.

Since inception*

► Most fixed-income funds turned in low single-digit gains as investors continued to
worry about rising inflation and higher interest rates.

►The high yield asset class continued to provide strong performance, thanks to investors’
willingness to take on extra credit risk in exchange for higher levels of income relative
to other fixed-income investments.

► The Portfolio’s international equity and domestic large-cap value stock funds helped
boost returns for our shareholders.

Target asset allocation
Equity	% of Total	Fixed Income	% of Total

U.S. Large Cap	10.0	Long-Term Bond	5.0

International	5.0	Intermediate-Term Bond	28.0

Real Estate	5.0	Short-Term Bond	11.0

		Multi-Sector Bond	16.0

		High Yield Bond	8.0

		Global Bond	8.0

		Treasury Inflation-Protected Securities	4.0

Managers’ report

John Hancock

Lifestyle Conservative Portfolio

Fixed-income securities — which make up approximately 80% of the Portfolio’s assets — generally gained ground but produced mediocre results, with the broad bond market returning 3.33%, as measured by the Lehman Brothers Aggregate Bond Index. A steady stream of interest rate increases from the Federal Reserve Board (the Fed) weighed on bonds’ results. Although investors had long been hoping for a pause in the Fed’s series of rate hikes — a pause that did not come until August 2006 — inflation remained higher than expected and the U.S. central bank raised rates at five of its six meetings during the period. On August 31, 2006, the federal funds rate stood at 5.25%, up from 3.75% the previous October. Once again, the strongest performers in the fixed-income market were lower-rated, higher-yielding bonds. Against a backdrop of low default rates and continued strong fundamentals from bond issuers, credit spreads — the difference in yiel d among bonds of various credit quality — continued to narrow, but ended the period at historically very tight levels.

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE. . . AND WHAT’S BEHIND THE NUMBERS

High Yield (Western)	▲	High yield bonds continued to benefit in an environment of
		narrowing credit spreads.
Real estate securities	▲	Benefited from continued fundamental strengthening and demand for
		the securities’ high dividend yields.
U.S. Multi-Sector (GMO)	▼	An emphasis on certain higher-quality large-cap growth stocks
		detracted from performance in an environment favoring smaller,
		more-speculative names.

Lifestyle Conservative Portfolio

From The MFC Global Investment Management (U.S.A.), LLC’s Portfolio
Management Team

On the Portfolio’s equity side, results were better, as the Standard & Poor’s 500 Index returned 11.44% during the period. Large-capitalization U.S. stocks again lagged their mid-cap counterparts, which in turn underperformed small caps — although the performance gap between large and small stocks finally began to narrow during the period. Value stocks also continued to outshine growth stocks, despite several brief periods during which growth took the lead. International stocks were particularly strong performers, benefiting from continued relative weakness in the U.S. dollar and greater uncertainty about the direction of interest rates in the United States. Real estate securities also gained ground, helped by continued strong fundamentals and investors’ demand for yield.

“Diversification also helped
within the fixed-income portion
of the Portfolio...”

Performance summary

John Hancock Lifestyle Conservative Portfolio’s Class A, Class B, Class C, Class R3, Class R4 and Class R5, which began operations on October 18, 2006, produced total returns of 5.53%, 4.99%, 4.91%, 5.55%, 5.66% and 5.94%, respectively, at net asset value through August 31, 2006. Class 1 shares returned 6.01% at net asset value since beginning operation October 15, 2005. In comparison, the Portfolio’s benchmark — a 20/80 blend of the S&P 500 Index and the Lehman Brothers Aggregate Bond Index — returned 4.84% and Morningstar’s average conservative allocation portfolio returned 6.35% .¹ Keep in mind that your net asset value return will differ from the Portfolio’s performance if you were not invested in the Portfolio for the entire period and did not reinvest all distributions. See pages six and seven for historical performance information.

Benefits of diversification

During the period, we were successful in developing a portfolio of funds to outperform the overall bond market without exposing our

Lifestyle Conservative Portfolio

shareholders to excess levels of volatility. Much of these diversification benefits came from our approximately 20% stake in equity offerings — both domestic and international — including from our exposure to the strong-performing real estate securities market.

On the domestic equity side, for example, we were helped by a number of our large-cap value-oriented investments, such as Equity Income (+13.54%, T. Rowe Price), Value & Restructuring (+11.07%, Excelsior) and Fundamental Value (+10.87%, Davis). On the negative side, U.S. Multi-Sector, managed by GMO, was a relative laggard, gaining just 4.25% during a positive equity market environment. Our international stock investments were significant contributors, as their returns were well in excess of the overall bond market. In particular, the Fund benefited from its positions in International Core (+22.19%, GMO) and International Value (18.22%, Franklin/Templeton). In the real estate sector, our holdings in Real Estate Securities (+30.96%, Deutsche Asset Management) provided particularly strong results and we trimmed this position and reallocated to Global Real Estate.

Diversification also helped within the fixed-income portion of the Portfolio, especially with our high yield bond investments, which continued to enjoy strong gains. High Yield (+6.49%, Western) was one particularly favorable contributor to performance during the reporting period. The diversification theme also extended to individual fixed-income funds in the Portfolio, such as Spectrum Income (+5.47%, T. Rowe Price) whose managers have the flexibility to invest in multiple sectors of the bond market. At 11% of the Portfolio’s assets, Spectrum Income is one of our largest allocations. Other large Portfolio holdings generally performed in line with their benchmarks, including Total Return (+3.18%, PIMCO), at 16% of assets; U.S. Government Securities (+2.91%, Western), at 11%; and Active Bond (+2.98%, MFC Global Investment Management (U.S.) LLC/Declaration) at 10%.

Portfolio changes

Lifestyle Conservative Portfolio

this sale to establish a new Portfolio holding, High Income, managed by MFC Global. We also added to our weighting in U.S. High Yield Bond, managed by Wells Capital Management. Meanwhile, within our multi-sector bond allocation, we trimmed our Strategic Bond (Western) holding while slightly increasing our Spectrum Income weighting and initiating a position in Strategic Income (MFC Global).

“Lifestyle Conservative Portfolio is
well diversified across a wide range
of asset classes and investment styles,
including non-traditional asset classes.”

We also increased our diversification within the real estate asset class by adding exposure to non-U.S. real estate securities. Because the real estate market outside the United States is less well developed, we believe it offers greater inefficiency and therefore greater return potential. We established a new allocation in Global Real Estate, managed by Deutsche Asset Management.

Outlook

As interest rates have risen, bonds have encountered some difficulty. However, we note that the diversification provided by the Portfolio worked exactly as expected during the period. Although it may seem like a contradiction, maintaining a small allocation to more aggressive assets such as stocks, global bonds and real estate actually reduced risk and improved returns in a predominantly fixed-income portfolio. This is an excellent example of the power of diversification and asset allocation — and why we believe the Portfolio can be an important component of a conservative investor’s portfolio.

¹ Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

² As a percentage of net assets on August 31, 2006.

Lifestyle Conservative Portfolio

A look at performance

For the period ending August 31, 2006

		Cumulative total returns
		with maximum sales charge (POP)

	Inception	Since
Class	date	Inception^a

A	10-18-05	0.27%

B	10-18-05	–0.01

C	10-18-05	3.91

R3 ^b	10-18-05	5.55

R4^b	10-18-05	5.66

R5^b	10-18-05	5.94

1 ^b	10-15-05	6.01

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Portfolio’s performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable.

Since inception performance is calculated with an opening price (prior day’s close) on the inception date.

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05 and Class 1 shares began operation on 10-15-05.

b For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5 and Class 1 share prospectuses.

Lifestyle Conservative Portfolio

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in a blended index.

Class	Period beginning	Without sales charge	With maximum sales charge	Index

B³	10-18-05	$10,499	$9,999	$10,484

C³	10-18-05	10,491	10,391	10,484

R3^1,3	10-18-05	10,555	10,555	10,484

R4^1,3	10-18-05	10,566	10,566	10,484

R5^1,3	10-18-05	10,594	10,594	10,484

1^1,2	10-15-05	10,601	10,601	10,383

A blended index is used combining 20% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 80% of the Lehman Brothers Aggregate Bond Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

³ Index figure from 10-31-05.

Lifestyle Conservative Portfolio

Your expenses

These examples are intended to help you understand your ongoing
operating expenses.

Understanding Portfolio expenses

As a shareholder of the Portfolio, you incur two types of costs:

▪ Transaction costs which include sales charges (loads) on purchases or redemptions
(varies by share class), minimum account fee charge, etc.

▪ Ongoing operating expenses including management fees, distribution and service
fees (if applicable) and other Portfolio expenses.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06 ^a

Class A	$1,000.00	$1,019.40	$2.70

Class B	1,000.00	1,016.60	6.66

Class C	1,000.00	1,016.50	6.61

Class R3	1,000.00	1,021.00	3.51

Class R4	1,000.00	1,020.80	2.29

Class R5	1,000.00	1,022.90	0.87

Class 1	1,000.00	1,022.60	0.56

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at

Lifestyle Conservative Portfolio

August 31, 2006 by $1,000.00, then multiply it by the “expenses paid” for your share class from the table above. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:

Hypothetical example for comparison purposes

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06 ^a

Class A	$1,000.00	$1,022.53	$2.70

Class B	1,000.00	1,018.60	6.67

Class C	1,000.00	1,018.65	6.61

Class R3	1,000.00	1,021.73	3.52

Class R4	1,000.00	1,022.94	2.29

Class R5	1,000.00	1,024.35	0.87

Class 1	1,000.00	1,024.65	0.56

^aExpenses are equal to the Portfolio’s annualized expense ratio of 0.53%, 1.31%, 1.30%, 0.69%, 0.45%, 0.17% and 0.11% for Class A, Class B, Class C, Class R3, Class R4, Class R5 and Class 1, respectively, multiplied by the average account value over the period, multiplied by the number of days in the period /365 or 366 (to reflect the one-half year period). The expense ratios do not include fees and expenses incurred by the Portfolio from the underlying funds.

Lifestyle Conservative Portfolio

Portfolio’s investments

Securities owned by the Portfolio on 8-31-06

Portfolio of investments, showing all underlying funds.

Issuer	Shares	Value

Investment companies 99.99%		$1,122,093,692
(Cost $1,097,601,204)
John Hancock Funds II

Active Bond Fund Class NAV	11,676,853	$112,097,784

Blue Chip Growth Fund Class NAV	1,266,323	22,540,556

Core Bond Fund Class NAV	1,787,816	22,365,576

Equity-Income Fund Class NAV	1,240,334	22,462,455

Fundamental Value Fund Class NAV	1,410,630	22,330,275

Global Bond Fund Class NAV	6,061,926	89,655,892

Global Real Estate Fund Class NAV	3,307,474	34,066,978

High Income Fund Class NAV	2,267,633	22,381,534

High Yield Fund Class NAV	4,442,772	44,783,146

International Value Fund Class NAV	1,896,422	33,908,026

Investment Quality Bond Fund Class NAV	4,765,388	55,993,309

Real Estate Equity Fund Class NAV	2,072,821	22,780,304

Real Return Bond Fund Class NAV	3,368,735	44,871,555

Spectrum Income Fund Class NAV	12,007,658	123,318,649

Strategic Bond Fund Class NAV	1,900,350	22,367,119

Strategic Income Fund Class NAV	3,339,826	33,598,645

Total Return Fund Class NAV	13,052,538	179,472,399

U.S. Government Securities Fund Class NAV	9,094,286	123,318,512

U.S. High Yield Bond Fund Class NAV	1,712,137	22,343,387

U.S. Multi Sector Fund Class NAV	2,170,038	22,590,100

Value & Restructuring Fund Class NAV	2,032,200	22,516,772

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Issuer	Shares	Value
John Hancock Funds III

International Core Fund Class NAV	567,057	$22,330,719

Total investments 99.99%		$1,122,093,692

Other assets in excess of liabilities 0.01%		$151,984

Total net assets 100.00%		$1,122,245,676

Percentages are stated as a percent of net assets of the Portfolio.

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial statements

Statement of assets and liabilities 8-31-06

This Statement of Assets and Liabilities is the Portfolio’s balance sheet. It shows the value
of what the Portfolio owns, is due and owes. You’ll also find the net asset value and the
maximum offering price per share.

Assets

Investments in affiliated funds, at value (cost $1,097,601,204)	$1,122,093,692
Receivable for investments sold	16,521
Receivable for fund shares sold	594,102
Other assets	3,199
Total assets	1,122,707,514

Liabilities

Payable for investments purchased	323,376
Payable for fund shares repurchased	22,957
Payable to affiliates
Fund administration fees	19,885
Transfer agent fees	8,061
Trustees’ fees	236
Due to adviser	1,144
Other payables and accrued expenses	86,179
Total liabilities	461,838

Net assets

Capital paid-in	1,084,398,395
Accumulated net realized gain on investments	12,734,242
Net unrealized appreciation on investments	24,492,488
Accumulated net investment income	620,551
Net assets	$1,122,245,676

Net asset value per share

Based on net asset values and shares outstanding
— the Portfolio has an unlimited number of shares authorized with no par value
Class A ($12,359,401 ÷ 906,463 shares)	$13.63
Class B ($2,960,262 ÷ 217,223 shares)	$13.63
Class C ($8,305,380 ÷ 609,807 shares)	$13.62
Class R3 ($297,906 ÷ 21,827 shares)	$13.65
Class R4 ($703,562 ÷ 51,572 shares)	$13.64
Class R5 ($295,346 ÷ 21,635 shares)	$13.65
Class 1 ($1,097,323,819 ÷ 80,478,108 shares)	$13.64

Maximum offering price per share

Class A¹($13.63 ÷ 95%)	$14.35

¹ 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

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of operations For the period ended 8-31-06^a

This Statement of Operations summarizes the Portfolio’s investment income earned and
expenses incurred in operating the Portfolio. It also shows net gains (losses) for the
period stated.

Investment income
Income distributions received from affiliated underlying funds	$23,080,110
Total investment income	23,080,110

Expenses
Investment management fees (Note 3)	365,900
Distribution and service fees (Note 3)	477,073
Transfer agent fees (Note 3)	11,912
Blue sky fees (Note 3)	95,830
Printing and postage fees (Note 3)	22,906
Fund administration fees (Note 3)	77,124
Audit and legal fees	58,980
Custodian fees	10,438
Trustees’ fees (Note 3)	10,734
Registration and filing fees	32,664
Miscellaneous	7,906

Total expenses	1,171,467
Less expense reductions (Note 3)	(108,345)

Net expenses	1,063,122

Net investment income	22,016,988

Realized and unrealized gain

Net realized gain on investments	12,725,793
Capital gain distributions received from affiliated underlying funds	838,352
Change in net unrealized appreciation of investments	24,492,488
Net realized and unrealized gain	38,056,633
Increase in net assets from operations	$60,073,621

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of changes in net assets

This Statement of Changes in Net Assets shows how the value of the Portfolio’s net
assets has changed during the period. It reflects earnings less expenses, any investment
gains and losses, distributions, if any, paid to shareholders and the net of Portfolio
share transactions.

	Period
	ended _a
	8-31-06

Increase (decrease) in net assets

From operations
Net investment income	$22,016,988
Net realized gain	13,564,145
Change in net unrealized appreciation	24,492,488

Increase in net assets resulting from operations	60,073,621

Distributions to shareholders
From net investment income
Class A	(125,005)
Class B	(20,839)
Class C	(56,558)
Class R3	(3,046)
Class R4	(6,698)
Class R5	(5,036)
Class 1	(22,120,363)
	(22,337,545)

From Fund share transactions	1,084,509,600

Net assets
End of period	$1,122,245,676

Accumulated net investment income	$620,551

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

The Financial Highlights show how the Portfolio’s net asset value for a share has changed
since the beginning of the period.

CLASS A SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.16
Net investment income ^h,v	0.31
Net realized and unrealized
gain on investments	0.41

Total from investment operations	0.72

Less distributions
From net investment income	(0.25)
	(0.25)
Net asset value, end of period	$13.63
Total return ^k,l(%)	5.53^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$12
Ratio of net expenses to average
net assets ^q(%)	0.57^r
Ratio of gross expenses to average
net assets ^p,q(%)	1.02^r
Ratio of net investment income
to average net assets ^v(%)	2.75^r
Portfolio turnover (%)	20^m

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.16
Net investment income ^h,v	0.24
Net realized and unrealized
gain on investments	0.41

Total from investment operations	0.65
Less distributions
From net investment income	(0.18)
	(0.18)
Net asset value, end of period	$13.63
Total return ^k,l(%)	4.99^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$3
Ratio of net expenses to average
net assets ^q(%)	1.33^r
Ratio of gross expenses to average
net assets ^p,q(%)	3.12^r
Ratio of net investment income
to average net assets ^v(%)	2.08^r
Portfolio turnover (%)	20^m

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.16
Net investment income ^h,v	0.29
Net realized and unrealized
gain on investments	0.35

Total from investment operations	0.64

Less distributions
From net investment income	(0.18)
	(0.18)
Net asset value, end of period	$13.62
Total return ^k,l(%)	4.91^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$8
Ratio of net expenses to average
net assets ^q(%)	1.31^r
Ratio of gross expenses to average
net assets ^p,q(%)	2.05^r
Ratio of net investment income
to average net assets ^v(%)	2.54^r
Portfolio turnover (%)	20^m

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R3 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.16
Net investment income ^h,v	0.28
Net realized and unrealized
gain on investments	0.44

Total from investment operations	0.72

Less distributions
From net investment income	(0.23)
	(0.23)
Net asset value, end of period	$13.65
Total return ^k,l(%)	5.55^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$—ⁱ
Ratio of net expenses to average
net assets ^q(%)	0.68^r
Ratio of gross expenses to average
net assets ^p,q(%)	14.72^r
Ratio of net investment income
to average net assets ^v(%)	2.46^r
Portfolio turnover (%)	20^m

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R4 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.16
Net investment income ^h,v	0.44
Net realized and unrealized
gain on investments	0.30

Total from investment operations	0.74

Less distributions
From net investment income	(0.26)
	(0.26)
Net asset value, end of period	$13.64
Total return ^k,l(%)	5.66^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.45^r
Ratio of gross expenses to average
net assets ^p,q(%)	10.01^r
Ratio of net investment income
to average net assets ^v(%)	3.89^r
Portfolio turnover (%)	20^m

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R5 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.16
Net investment income ^h,v	0.28
Net realized and unrealized
gain on investments	0.49

Total from investment operations	0.77

Less distributions
From net investment income	(0.28)
	(0.28)
Net asset value, end of period	$13.65
Total return ^k,l(%)	5.94^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$—ⁱ
Ratio of net expenses to average
net assets ^q(%)	0.19^r
Ratio of gross expenses to average
net assets ^p,q(%)	9.18^r
Ratio of net investment income
to average net assets ^v(%)	2.44^r
Portfolio turnover (%)	20^m

See notes to financial statements

Lifestyle Conservative Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 1 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.15
Net investment income ^h,v	0.30
Net realized and unrealized
gain on investments	0.48

Total from investment operations	0.78

Less distributions
From net investment income	(0.29)
	(0.29)
Net asset value, end of period	$13.64
Total return ^k(%)	6.01^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1,097
Ratio of net expenses to average
net assets ^q(%)	0.12^r
Ratio of net investment income
to average net assets ^v(%)	2.54^r
Portfolio turnover (%)	20^m

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, and Class 1 shares began operation on 10-15-05.

^h Based on the average of the shares outstanding.

ⁱ Less than $500,000.

^k Assumes dividend reinvestment and does not reflect the effect of sales charges.

^l Total returns would have been lower had certain expenses not been reduced during the period shown.

^m Not annualized.

^p Does not take into consideration expense reductions during the period shown.

^q Does not include expenses of the investment companies in which the Portfolio invests.

^r Annualized.

^v Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

See notes to financial statements

Lifestyle Conservative Portfolio

Notes to financial statements

1. Organization

The John Hancock Lifestyle Conservative Portfolio (the “Portfolio”) is a newly organized non-diversified series of John Hancock Funds II (the “Trust”). The Trust was established as a Massachusetts business trust on June 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment management company.

The Portfolio operates as a “fund of funds”, investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III and in other permitted investments.

John Hancock Investment Management Services, LLC (the “Adviser”), a Delaware limited liability company controlled by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”), serves as investment adviser for the Trust and John Hancock Funds, LLC, (the “Distributor”), an affiliate of the Adviser, serves as principal underwriter. John Hancock Life Insurance Company of New York (“John Hancock New York”) is a wholly owned subsidiary of John Hancock USA. John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (“Manulife”), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

The Portfolio commenced operations after certain separate accounts of John Hancock USA redeemed their interests in portfolios of John Hancock Trust and certain unaffiliated mutual funds of approximately $214 million at the close of business on October 14, 2005, with additional redemption proceeds of approximately $741 million received on October 28, 2005, and invested such proceeds in Class 1 shares of the Portfolio, which in turn invested the proceeds in underlying funds of the Trust.

Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class R3, R4 and R5 shares are available only to certain retirement plans.

2. Significant accounting policies

Lifestyle Conservative Portfolio

Securities valuation

Security transactions and related
investment income

Gains and losses on securities sold are determined on the basis of specific identified cost for both financial and federal income tax reporting purposes.

Multi-class operations

Expense allocation

Federal income taxes

New accounting pronouncement

Distribution of income and gains

The Portfolio records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date.

Lifestyle Conservative Portfolio

During the period ended August 31, 2006, the tax character of distributions paid was as follows: ordinary income $22,337,545. Distributions paid by the Portfolio with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Portfolio’s financial statements as a return of capital. As of August 31, 2006, the components of distributable earnings on a tax basis included $13,346,451 of undistributed ordinary income and $8,342 of undistributed long-term gain.

Capital accounts

The Portfolio reports the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carryforward is available). Accordingly, the Portfolio may periodically make reclassifications among certain capital accounts, without affecting its net asset value.

3. Investment advisory and
other agreements

Advisory fees

Expense reimbursements

The Adviser has contractually agreed to waive advisory fees or reimburse the Portfolio’s expenses for Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares to the extent that blue sky fees and printing and postage expenses attributable to each class exceed 0.09% of the average annual net assets attributable to the classes, at least until November 1, 2006, and may thereafter be terminated by the Adviser at any time. Accordingly, the expense reductions related to this expense limitation amounted to $19,988, $18,459, $17,947, $17,104, $16,789 and $17,356 for Class A, Class B, Class C, Class R3, Class R4 and Class R5, respectively, for the period ended August 31, 2006.

Administration fees

Distribution plans

Lifestyle Conservative Portfolio

Class R3, Class R4 and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

Sales charges

Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the period ended August 31, 2006, the Portfolio was informed that the Distributor received net up-front sales charges of $203,967 with regard to sales of Class A shares. Of this amount, $37,633 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $165,887 was paid as sales commissions to unrelated broker-dealers and $447 was paid as sales commissions to sales personnel of Signator Investors, Inc. (“Signator Investors”), a related broker-dealer, an indirect subsidiary of MFC.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolio in connection with the sale of Class B and Class C shares. During the period ended August 31, 2006, the Portfolio was informed that CDSCs received by the Distributor amounted to $1,755 for Class B shares and $420 for Class C shares.

Transfer agent fees

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of each of Class A, Class B, Class C, Class R3, Class R4 and Class R5 share average daily net assets. This agreement is effective until December 31, 2006. Signature Services reserves the right to terminate this limitation in the future. In addition, Signature Services has voluntarily agreed to further limit transfer agent fees for Class R3, Class R4 and Class R5 shares so that such fees do not exceed 0.05% annually of each class’s average daily net assets. Accordingly, the transfer agent fees reductions amounted to $166, $244 and $292 for Class R3, Class R4 and Class R5 shares, respectively, during the period ended August 31, 2006. Signature Services reserves the right to terminate this limitation at any time.

Lifestyle Conservative Portfolio

Expenses under the agreements described above for the period ended August 31, 2006, were as follows:

	Distribution	Transfer		Printing and
Share Class	and service fees	agent	Blue sky	postage


Class A	$13,027	$5,061	$16,139	$7,758
Class B	10,235	1,954	15,948	3,432
Class C	24,052	4,006	16,089	4,023
Class R3	621	211	15,774	1,441
Class R4	460	319	15,774	1,176
Class R5	1	361	16,106	1,429
Class 1	428,677	—	—	3,647
Total	$477,073	$11,912	$95,830	$22,906

Trustees’ fees

The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. Total Trustees’ expenses are allocated based on each Portfolio’s average daily net asset value.

4. Guarantees and Indemnifications

5. Capital shares

Share activities for the Portfolio for the period ended August 31, 2006 were as follows:

	Period ended 8-31-06^a
	Shares	Amount

Class A shares

Sold	970,480	$13,042,633
Distributions reinvested	8,061	106,760
Repurchased	(72,078)	(970,334)
Net increase	906,463	$12,179,059

Class B shares

Sold	227,435	$3,046,846
Distributions reinvested	1,215	16,097
Repurchased	(11,427)	(153,081)
Net increase	217,223	$2,909,862

Class C shares

Sold	621,340	$8,332,624
Distributions reinvested	3,508	46,442
Repurchased	(15,041)	(203,312)
Net increase	609,807	$8,175,754

Lifestyle Conservative Portfolio

	Period ended 8-31-06^a
	Shares	Amount

Class R3 shares

Sold	21,755	$290,487
Distributions reinvested	96	1,277
Repurchased	(24)	(327)
Net increase	21,827	$291,437


Class R4 shares

Sold	51,727	$693,385
Distributions reinvested	359	4,751
Repurchased	(514)	(6,839)
Net increase	51,572	$691,297


Class R5 shares

Sold	22,121	$294,449
Distributions reinvested	219	2,896
Repurchased	(705)	(9,504)
Net increase	21,635	$287,841


Class 1 shares

Sold	82,605,957	$1,088,806,246
Distributions reinvested	1,669,737	22,120,363
Repurchased	(3,797,586)	(50,952,259)
Net increase	80,478,108	$1,059,974,350


Net increase	82,306,635	$1,084,509,600

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, and Class 1 shares began operation on 10-15-05.

6. Investment transactions

Purchases and sales of the underlying funds during the period ended August 31, 2006, aggregated $1,295,924,477 and $211,049,066, respectively.

The cost of investments owned on August 31, 2006, including short-term investments, for federal income tax purposes, was $1,097,601,204. Gross unrealized appreciation and depreciation of investments aggregated $25,040,986 and $548,498, respectively, resulting in net unrealized appreciation of $24,492,488.

7. Investment in affiliated
underlying funds

Lifestyle Conservative Portfolio

Affiliate —	Shares	Shares	Ending Share		Ending
Class NAV	Purchased	Sold	Amount	Proceeds	Value

Active Bond	11,802,252	125,399	11,676,853	$1,206,024	$112,097,784
Blue Chip Growth	1,364,197	97,874	1,266,323	1,737,077	22,540,556
Core Bond	1,793,949	6,133	1,787,816	76,768	22,365,576
Equity-Income	1,324,589	84,255	1,240,334	1,452,194	22,462,455
Fundamental Value	1,489,354	78,724	1,410,630	1,205,982	22,330,275
Global Bond	6,400,164	338,238	6,061,926	4,886,884	89,655,892
Global Real Estate	3,534,808	227,334	3,307,474	2,206,835	34,066,978
High Income	2,268,231	598	2,267,633	5,902	22,381,534
High Yield	7,625,047	3,182,275	4,442,772	33,212,442	44,783,146
International Core*	567,063	6	567,057	243	22,330,719
International Stock	2,096,544	2,096,544	—	28,695,699	—
International Value	2,306,371	409,949	1,896,422	6,957,524	33,908,026
Investment Quality Bond	4,823,671	58,283	4,765,388	689,386	55,993,309
Real Estate Equity	2,219,693	146,872	2,072,821	1,524,383	22,780,304
Real Estate Securities	2,297,538	2,297,538	—	62,052,189	—
Real Return Bond	3,421,010	52,275	3,368,735	695,294	44,871,555
Spectrum Income	12,118,904	111,246	12,007,658	1,128,399	123,318,649
Strategic Bond	6,312,683	4,412,333	1,900,350	52,461,152	22,367,119
Strategic Income	3,340,661	835	3,339,826	8,295	33,598,645
Total Return	13,287,977	235,439	13,052,538	3,220,507	179,472,399
U.S. Government
Securities	9,246,831	152,545	9,094,286	2,059,959	123,318,512
U.S. High Yield Bond	1,714,291	2,154	1,712,137	28,000	22,343,387
U.S. Multi Sector	2,279,765	109,727	2,170,038	1,144,986	22,590,100
Value & Restructuring	2,427,471	395,271	2,032,200	4,392,942	22,516,772

*Represents the Portfolio’s investment in John Hancock Funds III International Core Fund

8. Reclassification of accounts

During the period ended August 31, 2006, the Portfolio reclassified amounts to reflect a decrease in accumulated net realized gain on investments of $829,903, an increase in accumulated net investment income of $941,108 and a decrease in capital paid-in of $111,205. This represents the amounts necessary to report these balances on a tax basis, excluding certain temporary differences, as of August 31, 2006. Additional adjustments may be needed in subsequent reporting periods.These reclassifications, which have no impact on the net asset value of the Portfolio, are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America and book and tax differences in accounting for non-deductible organizational costs. The calculation of net investment income per share in the Portfolio’s Financial Highlights excludes these adjustments.

Lifestyle Conservative Portfolio

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of John Hancock
Lifestyle Conservative Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of securities owned, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of John Hancock Lifestyle Conservative Portfolio (the “Portfolio”) at August 31, 2006, and the results of its operations, the changes in its net assets, and the financial highlights for the period October 15, 2005 (commencement of operations) through August 31, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Portfolio’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2006, by correspondence with the transfer agent, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolio, if any, paid during its taxable year ended August 31, 2006.

With respect to the ordinary dividends paid by the Portfolio for the fiscal period ended August 31, 2006, 67.19% of the dividends qualify for the corporate dividends-received deduction.

Shareholders will be mailed a 2006 U.S. Treasury Department Form 1099-DIV in January 2007. This will reflect the total of all distributions that are taxable for calendar year 2006.

Trustees and Officers

Independent Trustees

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Bardelis, Born: 1941	2005	209

President and Executive Officer, Island Commuter Corp. (Marine Transport).
Trustee of John Hancock Trust (since 1988) and John Hancock Funds III (since 2005).


Peter S. Burgess, Born: 1942	2005	209

Consultant (financial, accounting and auditing matters (since 1999);
Certified Public Accountant; Partner, Arthur Andersen (prior to 1999).
Director of the following publicly traded companies: PMA Capital Corporation
(since 2004) and Lincoln Educational Services Corporation (since 2004).
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


Elizabeth G. Cook, Born: 1937	2005	209

Expressive Arts Therapist, Massachusetts General Hospital (September 2001
to present); Expressive Arts Therapist, Dana Farber Cancer Institute
(September 2000 to January 2004); President, The Advertising Club of Greater Boston.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


William H. Cunningham, Born: 1944	2005	160

Former Chancellor, University of Texas System and former President of the
University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies
(until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting,
Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing)
(since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods
Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation
(insurance) (since 2006), Jefferson-Pilot Corporation (diversified life insurance
company) (until 2006), New Century Equity Holdings (formerly Billing Concepts)
(until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures
(until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems
Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive
Bridge, Inc. (college fundraising) (until 2001); Advisory Director, Q Investments
(until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce
Bank - Austin), LIN Television (since 2002), WilTel Communications (until 2003)
and Hayes Lemmerz International, Inc. (diversified automotive parts supply
company) (since 2003). Trustee of John Hancock Funds (since 2005) and
John Hancock Funds III (since 2005).

Independent Trustees (continued)

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Ladner, Born: 1938	2005	160

Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003);
Senior Vice President and Chief Financial Officer, UGI Corporation (public utility
holding company) (retired 1998); Vice President and Director for AmeriGas, Inc.
(retired 1998); Director of AmeriGas Partners, L.P. (until 1997)(gas distribution);
Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association
(since 2007). Trustee of John Hancock Funds (since 2004) and John Hancock
Funds III (since 2005).


Hassell H. McClellan, Born: 1945	2005	209

Associate Professor, The Wallace E. Carroll School of Management, Boston College.
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


James. M. Oates, Born: 1946	2005	209

Managing Director, Wydown Group (financial consulting firm)(since 1994);
Chairman, Emerson Investment Management, Inc. (since 2000); Chairman,
Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services
company) (since 1997). Director of the following publicly traded companies:
Stifel Financial (since 1996); Investor Financial Services Corporation (since 1995);
and Connecticut River Bancorp, Director (since 1998). Director, Phoenix Mutual
Funds (since 1988; overseeing 20 portfolios). Trustee of John Hancock Trust
(since 2004) and John Hancock Funds III (since 2005).

Non-Independent Trustee³

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

James R. Boyle, Born: 1959	2005	262

Chairman and Director, John Hancock Advisers, LLC (the “Adviser”), The
Berkeley Financial Group, LLC (“The Berkeley Group”) (holding company)
and John Hancock Funds, LLC (since 2005); President, John Hancock
Annuities; Executive Vice President, John Hancock Life Insurance Company
(since June, 2004); President U.S. Annuities; Senior Vice President, The
Manufacturers Life Insurance Company (U.S.A) (prior to 2004).

Principal officers who are not Trustees

Name, age
*Position(s) held with Portfolio*		Officer of
Principal occupation(s) and		Portfolio
directorships during past 5 years		since

Keith Hartstein², Born: 1956		2005

President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004);
Director, President and Chief Executive Officer, the Adviser and The
Berkeley Group, John Hancock Funds, LLC (since 2005); Director, MFC
Global Investment Management (U.S.), LLC (“MFC Global (U.S.)”)
(since 2005); Director, John Hancock Signature Services, Inc. (since
2005); President and Chief Executive Officer, John Hancock Investment
Management Services, LLC (since 2006); President and Chief Executive
Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds
III, John Hancock Trust,; Director, Chairman and President, NM Capital
Management, Inc. (since 2005); Chairman, Investment Company Institute
Sales Force Marketing Committee (since 2003); Director, President and
Chief Executive Officer, MFC Global (U.S.) (2005-2006); Executive Vice
President, John Hancock Funds, LLC (until 2005).


John Vrysen², Born: 1955		2005

Chief Financial Officer
Director, Executive Vice President and Chief Financial Officer, the Adviser,
The Berkeley Group and John Hancock Funds, LLC (since 2005); Executive
Vice President and Chief Financial Officer, John Hancock Investment
Management Services, LLC (since 2005), Vice President and Chief Financial
Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature
Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds,
John Hancock Funds II, John Hancock Funds III, John Hancock Trust (since
2005); Vice President and General Manager, Fixed Annuities, U.S. Wealth
Management (until 2005); Vice President, Operations Manulife Wood
Logan (2000-2004).

Principal officers who are not Trustees (continued)

Name, age
*Position(s) held with Portfolio*	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since

Francis V. Knox, Jr.², Born: 1947	2005

Vice President and Chief Compliance Officer, John Hancock Investment
Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005);
Chief Compliance Officer, John Hancock Funds, John Hancock Funds II,
John Hancock Funds III and John Hancock Trust (since 2005); Vice President
and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President
and Ethics & Compliance Officer, Fidelity Investments (until 2001).


Gordon Shone², Born: 1956	2005

Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John
Hancock Funds III and John Hancock Trust (since 2005); Vice President
and Chief Financial Officer, John Hancock Trust (2003-2005); Senior Vice
President, John Hancock Life Insurance Company (U.S.A.) (since 2001);
Vice President, John Hancock Investment Management Services, Inc. and
John Hancock Advisers, LLC (since 2006), The Manufacturers Life Insurance
Company (U.S.A.) (1998 to 2000).


Thomas M. Kinzler², Born: 1955	2006

Vice President and Counsel for John Hancock Life Insurance Company
(U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock
Funds, John Hancock Funds II, John Hancock Funds III and John Hancock
Trust (since 2006); Vice President and Associate General Counsel for
Massachusetts Mutual Life Insurance Company (1999-2006); Secretary
and Chief Legal Counsel for MML Series Investment Fund (2000-2006);
Secretary and Chief Legal Counsel for MassMutual Institutional Funds
(2000-2004); Secretary and Chief Legal Counsel for MassMutual Select
Funds and MassMutual Premier Funds (2004-2006).

²Affiliated with the investment adviser.

³Non-Independent Trustee: holds positions with the Fund’s investment adviser, underwriter, and/ or certain other affiliates.

For more information

The Portfolio’s proxy voting policies, procedures and records are available without charge,
upon request:

By phone	On the Portfolio’s Web site	On the SEC’s Web site
1-800-225-5291	www.jhfunds.com/proxy	www.sec.gov


Investment adviser	Custodian	Legal counsel
John Hancock Investment	State Street Bank & Trust Co.	Kirkpatrick & Lockhart
Management Services, LLC	2 Avenue de Lafayette	Nicholson Graham LLP
601 Congress Street	Boston, MA 02111	1 Lincoln Street
Boston, MA 02210-2805		Boston, MA 02111
	Transfer agent
Principal distributor	John Hancock Signature	Independent registered
John Hancock Funds, LLC	Services, Inc.	public accounting firm
601 Congress Street	1 John Hancock Way,	PricewaterhouseCoopers LLP
Boston, MA 02210-2805	Suite 1000	125 High Street
	Boston, MA 02217-1000	Boston, MA 02110

How to contact us


Internet	www.jhfunds.com


Mail	Regular mail:	Express mail:
	John Hancock	John Hancock
	Signature Services, Inc.	Signature Services, Inc.
	1 John Hancock Way, Suite 1000	Mutual Fund Imaging Operations
	Boston, MA 02217-1000	380 Stuart Street
		Boston, MA 02116


Phone	Customer service representatives	1-800-225-5291
	24-hour automated information	1-800-338-8080
	TDD line	1-800-554-6713

J O H N H A N C O C K F A M I L Y O F F U N D S

EQUTIY	INTERNATIONAL
Balanced Fund	Greater China Opportunities Fund
Classic Value Fund	International Classic Value Fund
Classic Value Fund II	International Core Fund
Core Equity Fund	International Fund
Focused Equity Fund	International Growth Fund
Growth Fund
Growth Opportunities Fund	INCOME
Growth Trends Fund	Bond Fund
Intrinsic Value Fund	Government Income Fund
Large Cap Equity Fund	High Yield Fund
Large Cap Select Fund	Investment Grade Bond Fund
Mid Cap Equity Fund	Strategic Income Fund
Mid Cap Growth Fund
Multi Cap Growth Fund	TAX-FREE INCOME
Small Cap Equity Fund	California Tax-Free Income Fund
Small Cap Fund	High Yield Municipal Bond Fund
Small Cap Intrinsic Value Fund	Massachusetts Tax-Free Income Fund
Sovereign Investors Fund	New York Tax-Free Income Fund
U.S. Core Fund	Tax-Free Bond Fund
U.S. Global Leaders Growth Fund
Value Opportunities Fund	MONEY MARKET
	Money Market Fund
ASSET ALLOCATION & LIFESTYLE	U.S. Government Cash Reserve
Allocation Core Portfolio
Allocation Growth + Value Portfolio	CLOSED-END
Lifestyle Aggressive Portfolio	Bank & Thrift Opportunity
Lifestyle Balanced Portfolio	Financial Trends
Lifestyle Conservative Portfolio	Income Securities
Lifestyle Growth Portfolio	Investors Trust
Lifestyle Moderate Portfolio	Patriot Global Dividend
	Patriot Preferred Dividend
SECTOR	Patriot Premium Dividend I
Financial Industries Fund	Patriot Premium Dividend II
Health Sciences Fund	Patriot Select Dividend
Real Estate Fund	Preferred Income
Regional Bank Fund	Preferred Income II
Technology Fund	Preferred Income III
Technology Leaders Fund	Tax-Advantaged Dividend

1-800-225-5291
1-800-554-6713 (TDD)
1-800-338-8080 EASI-Line

www.jhfunds. com

Now available: electronic delivery www.jhfunds. com/edelivery

This report is for the information of the shareholders of John Hancock Lifestyle Conservative Portfolio.

9800A 8/06
10/06

TABLE OF CONTENTS

Managers' report

page 2

A look at performance

page 6

Your expenses

page 8

Portfolio’s investments

page 10

Financial statements

page 12

Trustees and officers

page 33

For more information

page 40

CEO corner

To Our Shareholders,
The future has arrived at John Hancock Funds.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of August 31, 2006. They are subject to change at any time.

Your portfolio at a glance

The Portfolio seeks long-term growth of capital. Current income is also a consideration. To pursue this goal, the Portfolio, which is a fund-of-funds, normally invests approximately 20% of its assets in underlying funds that invest primarily in fixed-income securities and approximately 80% of its assets in underlying funds that invest primarily in equity securities.

Since inception*

► Across all asset classes, financial markets gained ground during the period, with nearly all of the Portfolio’s underlying funds performing positively.

► The Portfolio’s allocation to international, natural resources and real estate securities funds was a big positive, while U.S. large-cap growth and core funds lagged the S&P 500 Index.

► For further diversification, we add a new international small-cap stock fund to broaden our exposure to that asset class.

Target asset allocation
Equity	% of Total	Fixed Income	% of Total

U.S. Large Cap	39.0	High Yield Bond	7.0

International	16.0	Intermediate Term Bond	4.0

U.S. Mid Cap	8.0	Multi-Sector Bond	4.0

U.S. Small Cap	7.0	Treasury Inflation-Protected Securities	3.0

International Small Cap	4.0	Global Bond	2.0

Natural Resources	4.0

Real Estate	2.0

Managers’ report

John Hancock

Lifestyle Growth Portfolio

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE... AND WHAT’S BEHIND THE NUMBERS
Natural Resources	▲	Continued to benefit from steadily rising commodity prices.
(Wellington)
International	▲	Strong international stock performance and favorable
Opportunities (Marsico)		currency movements added to results.
U.S. Multi-Sector (GMO)	▼	Emphasis on certain higher-quality large-cap growth stocks detracted
		from performance.

From the MFC Global Investment Management (U.S.A.), LLC’s
Portfolio Management Team

resources, which was helped by continued economic expansion boosting demand for commodities, coupled with relatively tight supplies. Real estate securities also gained ground, helped by continued strong fundamentals and investors’ demand for yield.

Fixed-income securities — which make up approximately 20% of the Portfolio’s assets — generally gained ground but produced mediocre results, with the broad bond market returning 3.33%, as measured by the Lehman Brothers Aggregate Bond Index. A steady stream of interest rate increases from the Federal Reserve Board weighed on bonds’ results. Once again, the strongest performers in the fixed-income market were lower-rated, higher-yielding bonds, which benefited as credit spreads — the difference in yield among bonds of various credit quality — continued to narrow.

“On the Portfolio’s domestic

equity side, we were most helped

by a number of our large-cap

value-oriented investments.”

Performance results

John Hancock Lifestyle Growth Portfolio’s Class A, Class B, Class C, Class R3, Class R4 and Class R5, which began operations on October 18, 2005, producd total returns of 10.18%, 9.57%, 9.57%, 9.98%, 10.26% and 10.47%, respectively, at net asset value through August 31, 2006. Class 1 shares returned 10.58% at net asset value since beginning operation October 15, 2005 and Class 5 shares returned 1.53% at net asset value since beginning operation July 3, 2006. In comparison, the Portfolio’s benchmark, the 80% S&P 500/20% Lehman Brothers Aggregate Bond combined index, returned 8.59%, and Morningstar’s average large blend fund returned 11.41% .¹ Keep in mind that your net asset value return will be different from the Portfolio’s performance if you were not invested in the Portfolio for the entire period and did not reinvest all distributions. Please see pages six and seven for historical performance information.

Lifestyle Growth Portfolio

International gains

Particularly strong results came from the Portfolio’s international investments. International Core (+22.19%, GMO), our second-largest position at period end at 6% of assets, performed very well. Another big help was our position in International Opportunities (+23.51%, Marsico), in which we held a 4% stake. In addition, we benefited significantly from our exposure to the natural resources asset class through a 4% position in Natural Resources (+24.62%, Wellington). The Portfolio’s weighting in natural resources has declined somewhat relative to our benchmark, as these stocks have performed well and grown to occupy a larger portion of the index.

On the Portfolio’s domestic equity side, we were most helped by a number of our large-cap value-oriented investments. For example, Quantitative Value (+17.98%, MFC Global Investment Management (U.S.A.), LLC) enjoyed very strong results, while Large Cap Value (+13.43%, Mercury) and Equity Income (+13.54%, T. Rowe Price) also generated solid gains. By contrast, the Portfolio’s large-cap core and growth-oriented investments tended to lag in a market environment that continued to favor value and small-cap stocks. Capital Appreciation, managed by Jennison, turned in a modestly positive return of 2.72%, while the GMO-managed U.S. Multi-Sector — at 7% our largest weighting — gained 4.25% .. Core Equity (+3.63%, Legg Mason) also failed to keep pace with the S&P 500.

Broader small-cap exposure

We made a handful of allocation shifts during the period. In May, for example, we established a position in a new international small-cap fund, International Small Company, managed by Dimensional Fund Advisors (DFA). This fund was added to complement our existing holdings in International Small Cap, managed by Templeton. The DFA offering provides us with two important benefits — added exposure to the smaller end of the international small-cap spectrum, and enough capacity to maintain our desired exposure to this important asset class.

In the fixed-income portion of the Portfolio, we sought to further diversify our high yield bond exposure. We reduced our weighting in the High Yield fund (+6.49%), which was formerly managed by Salomon Brothers Asset Management and is now managed by Western Asset Management. We reallocated part of these assets to a new fund, High Income, managed by MFC Global and we also added to our weighting in U.S. High Yield Bond, managed by Wells Capital Management.

Lifestyle Growth Portfolio

We also increased diversification within the real estate asset class by adding exposure to non-U.S. real estate securities. Because the real estate market outside the United States is less well developed, we believe it offers greater inefficiency and therefore return potential. We established a new allocation to Global Real Estate, managed by Deutsche Asset Management. At period end, the Portfolio maintained a 2% overall allocation in real estate securities.

“Particularly strong results came

from the Portfolio’s international

investments.”

Outlook

We have maintained the Portfolio’s relatively neutral weighting in international markets. On the positive side, there are some good pockets of growth around the world. However, higher valuations in many markets along with the potential for rising interest rates are some reasons to be cautious.

We believe the stage may be set for high-quality, large-cap stocks to finally take the lead over their mid- and small-cap counterparts. We believe we have positioned the Portfolio to benefit from such a scenario, maintaining a slight overweight in funds that own high-quality large caps. Although we are expecting large caps to take the lead, we can’t predict when such a reversal will take place. If, however, investors continue their preference for higher-risk, lower-quality asset classes, we believe our broadly diversified Portfolio can help capture these potential performance gains while seeking to effectively manage volatility for our shareholders.

¹ Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

² As a percentage of net assets on August 31, 2006.

Lifestyle Growth Portfolio

A look at performance

For the period ending August 31, 2006

		Cumulative total returns
		with maximum sales charge (POP)
	Inception	Since
Class	date	Inception^a

A	10-18-05	4.69%

B	10-18-05	4.57

C	10-18-05	8.57

R3^b	10-18-05	9.98

R4^b	10-18-05	10.26

R5^b	10-18-05	10.47

1^b	10-15-05	10.58

5^b	7-03-06	1.53

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Portfolio’s performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable.

Since inception performance is calculated with an opening (prior day’s close) on the inception date.

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05 and Class 5 shares began operation on 7-3-06.

^b For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5, Class 1 and Class 5 share prospectuses.

Lifestyle Growth Portfolio

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in a blended Index.

Class	Period beginning	Without sales charge	With maximum sales charge	Index

B⁴	10-18-05	$10,957	$10,457	$10,859

C ⁴	10-18-05	10,957	10,857	10,859

R3^1,4	10-18-05	10,998	10,998	10,859

R4^1,4	10-18-05	11,026	11,026	10,859

R5^1,4	10-18-05	11,047	11,047	10,859

1^1,2	10-15-05	11,058	11,058	10,697

5^1,3	07-03-06	10,153	10,153	10,299

Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Portfolio’s Class B, Class C, Class R3, Class R4, Class R5, Class 1 and Class 5 shares, respectively, as of August 31, 2006. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

A blended index is used combining 80% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 20% of the Lehman Brothers Aggregate Bond Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did. ¹ For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5, Class 1 and Class 5 share prospectuses.

² Index figure from 9-30-05.

³ Index figure from 6-30-06.

⁴ Index figure from 10-31-05.

Lifestyle Growth Portfolio

Your expenses

These examples are intended to help you understand your ongoing operating expenses.

Understanding portfolio expenses

As a shareholder of the Portfolio, you incur two types of costs:

■ Transaction costs which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.

■ Ongoing operating expenses including management fees, distribution and service fees (if applicable) and other Portfolio expenses.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06^a

Class A	$1,000.00	$1,009.70	$3.09

Class B	1,000.00	1,006.20	6.83

Class C	1,000.00	1,006.20	6.78

Class R3	1,000.00	1,009.00	3.39

Class R4	1,000.00	1,010.40	2.48

Class R5	1,000.00	1,011.70	0.96

Class 1	1,000.00	1,012.50	0.56

Class 5 ^b	1,000.00	1,015.30	0.03

Lifestyle Growth Portfolio

Hypothetical example for comparison purposes

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06^a

Class A	$1,000.00	$1,022.13	$3.11

Class B	1,000.00	1,018.40	6.87

Class C	1,000.00	1,018.45	6.82

Class R3	1,000.00	1,021.83	3.41

Class R4	1,000.00	1,022.74	2.50

Class R5	1,000.00	1,024.25	0.97

Class 1	1,000.00	1,024.65	0.56

Class 5 ^b	1,000.00	1,008.19	0.03

^a Expenses are equal to the Portfolio's annualized expense ratio of 0.61%, 1.35%, 1.34%, 0.67%, 0.49%, 0.19%, 0.11% and 0.02% for Class A, Class B, Class C, Class R3, Class R4, Class R5, Class 1 and Class 5, respectively, multiplied by the average account value over the period, multiplied by the number of days in the period /365 or 366 (to reflect the one-half year period). The expense ratios do not include fees and expenses incurred by the Portfolio from the underlying funds.

^b Class 5 shares began operation on 7-3-06.

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Portfolio’s investments

Securities owned by the Portfolio on 8-31-06

Portfolio of investments, showing all underlying funds.

Issuer	Shares	Value

Investment companies 99.97%		$7,310,803,568
(Cost $6,954,050,007)
John Hancock Funds II

All Cap Core Fund Class NAV	14,681,919	$145,644,635

All Cap Growth Fund Class NAV	4,441,115	73,056,348

All Cap Value Fund Class NAV	9,211,950	145,548,808

Blue Chip Growth Fund Class NAV	16,408,692	292,074,718

Capital Appreciation Fund Class NAV	30,983,896	292,797,818

Core Equity Fund Class NAV	15,550,538	221,906,172

Equity-Income Fund Class NAV	12,065,362	218,503,714

Fundamental Value Fund Class NAV	18,421,529	291,612,803

Global Bond Fund Class NAV	9,830,446	145,392,303

Global Real Estate Fund Class NAV	7,148,278	73,627,263

High Income Fund Class NAV	7,347,765	72,522,440

High Yield Fund Class NAV	36,182,183	364,716,402

International Equity Index Fund Class NAV	7,696,629	146,005,059

International Opportunities Fund Class NAV	18,186,292	293,890,478

International Small Cap Fund Class NAV	6,963,951	145,894,773

International Small Company Fund Class NAV	15,667,344	146,176,323

International Value Fund Class NAV	16,379,362	292,862,991

Large Cap Fund Class NAV	4,966,896	72,864,364

Large Cap Value Fund Class NAV	3,141,475	72,285,344

Mid Cap Core Fund Class NAV	12,729,621	219,713,260

Mid Cap Index Fund Class NAV	8,008,519	147,116,485

Mid Cap Stock Fund Class NAV	4,663,342	73,820,697

Mid Cap Value Equity Fund Class NAV	7,584,913	73,194,409

Natural Resources Fund Class NAV	8,191,364	291,612,553

Quantitative Value Fund Class NAV	13,197,327	218,547,736

Real Estate Equity Fund Class NAV	6,709,222	73,734,347

Real Return Bond Fund Class NAV	16,403,954	218,500,667

Small Cap Fund Class NAV	5,288,773	74,254,376

Small Cap Index Fund Class NAV	4,668,215	74,458,026

Small Cap Opportunities Fund Class NAV	6,348,995	146,915,745

Small Company Growth Fund Class NAV	6,665,328	73,918,490

Small Company Value Fund Class NAV	3,136,883	74,124,541

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Issuer	Shares	Value
John Hancock Funds II (continued)

Special Value Fund Class NAV	3,591,654	$73,700,746

Spectrum Income Fund Class NAV	14,156,989	145,392,276

Strategic Bond Fund Class NAV	6,157,718	72,476,340

Strategic Income Fund Class NAV	7,208,455	72,517,058

Total Return Fund Class NAV	21,207,881	291,608,367

U.S. Global Leaders Growth Fund Class NAV	17,289,398	219,229,572

U.S. High Yield Bond Fund Class NAV	5,547,813	72,398,961

U.S. Multi Sector Fund Class NAV	49,218,806	512,367,776

Value & Restructuring Fund Class NAV	6,588,884	73,004,837

Vista Fund Class NAV	6,819,209	72,965,538
John Hancock Funds III

International Core Fund Class NAV	11,118,538	437,848,009


Total investment companies 99.97%		$7,310,803,568


Other assets in excess of liabilities 0.03%		$1,939,429


Total net assets 100.00%		$7,312,742,997

Percentages are stated as a percent of net assets of the Portfolio.

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial statements

Statement of assets and liabilities 8-31-06

Assets
Investments in affiliated funds, at value (cost $6,954,050,007)	$7,310,803,568
Receivable for fund shares sold	9,005,920
Other assets	25,408
Total assets	7,319,834,896

Liabilities
Payable for investments purchased	6,174,523
Payable for fund shares repurchased	124,831
Payable to affiliates
Fund administration fees	123,524
Transfer agent fees	104,151
Trustees’ fees	1,507
Due to advisor	132,199
Other payables and accrued expenses	431,164
Total liabilities	7,091,899

Net assets
Capital paid-in	6,754,160,151
Accumulated net realized gain on investments	158,942,423
Net unrealized appreciation on investments	356,753,561
Accumulated net investment income	42,886,862
Net assets	$7,312,742,997

Net asset value per share
Based on net asset values and shares outstanding
— the Portfolio has an unlimited number of shares authorized with no par value
Class A ($103,206,294 ÷ 7,055,607 shares)	$14.63
Class B ($24,126,195 ÷ 1,655,812 shares)	$14.57
Class C ($93,229,755 ÷ 6,399,461 shares)	$14.57
Class R3 ($2,224,344 ÷ 152,219 shares)	$14.61
Class R4 ($4,600,962 ÷ 314,372 shares)	$14.64
Class R5 ($1,541,424 ÷ 105,122 shares)	$14.66
Class 1 ($7,080,518,761 ÷ 484,032,948 shares)	$14.63
Class 5 ($3,295,262 ÷ 225,361 shares)	$14.62

Maximum offering price per share
Class A^a($14.63 ÷ 95%)	$15.40

^a 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

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of operations For the period ended 8-31-06^a

This Statement of Operations summarizes the Portfolio’s investment income earned and expenses incurred in operating the Portfolio. It also shows net gains (losses) for the period stated.

Investment income
Income distributions received from affiliated underlying funds	$70,403,278
Total investment income	70,403,278

Expenses
Investment management fees (Note 3)	2,324,445
Distribution and service fees (Note 3)	3,231,975
Transfer agent fees (Note 3)	144,604
Blue sky fees (Note 3)	110,195
Printing and postage fees (Note 3)	135,707
Fund administration fees (Note 3)	477,403
Audit and legal fees	182,437
Custodian fees	12,763
Trustees’ fees (Note 3)	65,233
Registration and filing fees	206,837
Miscellaneous	53,195
Total expenses	6,944,794
Less expense reductions (Note 3)	(162,750)
Net expenses	6,782,044
Net investment income	63,621,234

Realized and unrealized gain
Net realized gain on investments	158,888,831
Capital gain distributions received from affiliated underlying funds	14,311,942
Change in net unrealized appreciation of investments	356,753,561
Net realized and unrealized gain	529,954,334
Increase in net assets from operations	$593,575,568

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of changes in net assets

	Period ended
	8-31-06^a

Increase (decrease) in net assets

From operations
Net investment income	$63,621,234
Net realized gain	173,200,773
Change in net unrealized appreciation	356,753,561
Increase in net assets resulting from operations	593,575,568
Distributions to shareholders
From net investment income
Class A	(46,836)
Class B	(6,890)
Class C	(19,011)
Class R3	(519)
Class R4	(571)
Class R5	(2,527)
Class 1	(35,586,379)
	(35,662,733)
From Fund share transactions	6,754,830,162

Net assets
End of period	$7,312,742,997
Accumulated net investment income	$42,886,862

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

The Financial highlights show how the Portfolio’s net asset value for a share has changed since the beginning of the period.

CLASS A SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.07
Net realized and unrealized
gain on investments	1.28
Total from investment operations	1.35
Less distributions
From net investment income	(0.07)
	(0.07)
Net asset value, end of period	$14.63
Total return ^k,l(%)	10.18^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$103
Ratio of net expenses
to average net assets ^q(%)	0.61^r
Ratio of gross expenses
to average net assets ^p,q(%)	0.72^r
Ratio of net investment income
to average net assets ^v(%)	0.55^r
Portfolio turnover (%)	26^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.35
Net investment loss ^h,v	(0.02)
Net realized and unrealized
gain on investments	1.30
Total from investment operations	1.28
Less distributions
From net investment income	(0.06)
	(0.06)
Net asset value, end of period	$14.57
Total return ^k,l(%)	9.57^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$24
Ratio of net expenses
to average net assets ^q(%)	1.34^r
Ratio of gross expenses
to average net assets ^p,q(%)	1.69^r
Ratio of net investment loss
to average net assets ^v(%)	(0.19)^r
Portfolio turnover (%)	26^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.35
Net investment loss ^h,v	(0.02)
Net realized and unrealized
gain on investments	1.30
Total from investment operations	1.28
Less distributions
From net investment income	(0.06)
	(0.06)
Net asset value, end of period	$14.57
Total return ^k,l(%)	9.57^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$93
Ratio of net expenses
to average net assets ^q(%)	1.33^r
Ratio of gross expenses
to average net assets ^p,q(%)	1.44^r
Ratio of net investment loss
to average net assets ^v(%)	(0.14)^r
Portfolio turnover (%)	26 ^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R3 SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.07
Net realized and unrealized
gain on investments	1.26
Total from investment operations	1.33
Less distributions
From net investment income	(0.07)
	(0.07)
Net asset value, end of period	$14.61
Total return ^k,l(%)	9.98^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$2
Ratio of net expenses
to average net assets ^q(%)	0.68^r
Ratio of gross expenses
to average net assets ^p,q(%)	5.07^r
Ratio of net investment income
to average net assets ^v(%)	0.62^r
Portfolio turnover (%)	26^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R4 SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.08
Net realized and unrealized
gain on investments	1.29
Total from investment operations	1.37
Less distributions
From net investment income	(0.08)
	(0.08)
Net asset value, end of period	$14.64
Total return ^k,l(%)	10.26^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$5
Ratio of net expenses
to average net assets ^q(%)	0.49^r
Ratio of gross expenses
to average net assets ^p,q(%)	1.78^r
Ratio of net investment income
to average net assets ^v(%)	0.69^r
Portfolio turnover (%)	26^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R5 SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.35
Net investment income ^h,v	0.09
Net realized and unrealized
gain on investments	1.30
Total from investment operations	1.39
Less distributions
From net investment income	(0.08)
	(0.08)
Net asset value, end of period	$14.66
Total return ^k,l(%)	10.47^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$2
Ratio of net expenses
to average net assets ^q(%)	0.19^r
Ratio of gross expenses
to average net assets ^p,q(%)	2.52^r
Ratio of net investment income
to average net assets ^v(%)	0.70^r
Portfolio turnover (%)	26^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 1 SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$13.31
Net investment income ^h,v	0.15
Net realized and unrealized
gain on investments	1.25
Total from investment operations	1.40
Less distributions
From net investment income	(0.08)
	(0.08)
Net asset value, end of period	$14.63
Total return ^k(%)	10.58^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$7,081
Ratio of net expenses
to average net assets ^q(%)	0.11^r
Ratio of net investment income
to average net assets ^v(%)	1.17^r
Portfolio turnover (%)	26^m

See notes to financial statements

Lifestyle Growth Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 5 SHARES

Period ended	8-31-06^a

Per share operating performance
Net asset value, beginning of period	$14.40
Net investment loss ^h,v	—^j
Net realized and unrealized
gain on investments	0.22
Total from investment operations	0.22
Net asset value, end of period	$14.62
Total return ^k(%)	1.53^m

Ratios and supplemental data
Net assets, end of period
(in millions)	$3
Ratio of net expenses
to average net assets ^q(%)	0.02^r
Ratio of net investment loss
to average net assets ^v(%)	(0.02)^r
Portfolio turnover (%)	26^m

^aClass A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05, and Class 5 shares began operation on 7-3-06.
^hBased on the average of the shares outstanding.
j Less than $0.01 per share.
^kAssumes dividend reinvestment and does not reflect the effect of sales charges.
l Total returns would have been lower had certain expenses not been reduced during the period shown.
^mNot annualized.
^pDoes not take into consideration expense reductions during the period shown.
^qDoes not include expenses of the investment companies in which the Portfolio invests.
^rAnnualized.
^vRecognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

See notes to financial statements

Lifestyle Growth Portfolio

Notes to financial statements

1. Organization

The John Hancock Lifestyle Growth Portfolio (the “Portfolio”) is a newly organized non-diversified series of John Hancock Funds II (the “Trust”). The Trust was established as a Massachusetts business trust on June 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment management company.

The Portfolio operates as a “fund of funds”, investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III and in other permitted investments.

John Hancock Investment Management Services, LLC (the “Adviser”), a Delaware limited liability company controlled by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”), serves as investment adviser for the Trust and John Hancock Funds, LLC (the “Distributor”), an affiliate of the Adviser serves as the principal underwriter. John Hancock Life Insurance Company of New York (“John Hancock New York”) is a wholly owned subsidiary of John Hancock USA. John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (“Manulife”), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

The Portfolio commenced operations after certain separate accounts of John Hancock USA redeemed their interests in portfolios of John Hancock Trust and certain unaffiliated mutual funds of approximately $1.2 billion at the close of business on October 14, 2005, with additional redemption proceeds of approximately $4.4 billion received on October 28, 2005, and invested such proceeds in Class 1 shares of the Portfolio, which in turn invested the proceeds in underlying funds of the Trust.

Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class R3, R4 and R5 shares are available only to certain retirement plans. Class 5 shares currently are available only to the John Hancock Freedom 529 Plan.

2. Significant accounting policies

Lifestyle Growth Portfolio

23

Securities valuation

The net asset value of the shares of the Portfolio is determined daily as of the close of the New York Stock Exchange, normally at 4:00 P.M. Eastern Time. Investments in underlying funds are valued at their respective net asset values each business day, or at fair value as determined in good faith in accordance with procedures approved by the Trustees. Securities in the underlying funds’ portfolios are valued in accordance with their respective valuation polices, as outlined in the underlying funds’ financial statements. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost.

Security transactions and related investment income

Gains and losses on securities sold are determined on the basis of specific identified cost for both financial and federal income tax reporting purposes.

Multi-class operations

Expense allocation

Federal income taxes

New accounting pronouncement

In June 2006, Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”) was issued and is effective for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. This Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return, and requires certain expanded disclosures. Management is currently evaluating the application of the Interpretation to the Portfolio, and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on the Portfolio’s financial statements.

Lifestyle Growth Portfolio

24

Distribution of income and gains

The Portfolio records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date.

During the period ended August 31, 2006, the tax character of distributions paid was as follows: ordinary income $35,662,733. Distributions paid by the Portfolio with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Portfolio’s financial statements as a return of capital. As of August 31, 2006, the components of distributable earnings on a tax basis included $201,775,956 of undistributed ordinary income and $53,329 of undistributed long-term gain.

Capital accounts

The Portfolio reports the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carryforward is available). Accordingly, the Portfolio may periodically make reclassifica-tions among certain capital accounts, without affecting its net asset value.

3. Investment advisory and other agreements

Advisory fees

Expense reimbursements

The Adviser has contractually agreed to waive advisory fees or reimburse the Portfolio’s expenses for Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares to the extent that blue sky fees and printing and postage expenses attributable to each class exceed 0.09% of the average annual net assets attributable to the classes, at least until November 1, 2006, and may thereafter be terminated by the Adviser at any time. Accordingly, the expense reductions related to this expense limitation amounted to $41,134, $30,659, $33,679, $17,776, $17,357 and $19,973 for Class A, Class B, Class C, Class R3, Class R4 and Class R5, respectively, for the period ended August 31, 2006.

Administration fees

Lifestyle Growth Portfolio

25

Distribution plans

The Trust has a Distribution Agreement with the Distributor. The Portfolio has adopted Distribution Plans with respect to Class A, Class B, Class C, Class R3, Class R4 and Class 1, pursuant to Rule 12b-1 under the 1940 Act, to reimburse the Distributor for the services it provides as distributor of shares of the Portfolio. Accordingly, the Portfolio makes monthly payments to the Distributor at an annual rate not to exceed 0.30%, 1.00%, 1.00%, 0.50%, 0.25% and 0.05% of the average daily net assets of Class A, Class B, Class C, Class R3, Class R4 and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

Sales charges

Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the period ended August 31, 2006, the Portfolio was informed that the Distributor received net up-front sales charges of $2,719,165 with regard to sales of Class A shares. Of this amount, $441,963 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $2,258,586 was paid as sales commissions to unrelated broker-dealers and $18,616 was paid as sales commissions to sales personnel of Signator Investors, Inc. (“Signator Investors”), a related broker-dealer, an indirect subsidiary of MFC.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolio in connection with the sale of Class B and Class C shares. During the period ended August 31, 2006, the Portfolio was informed that CDSCs received by the Distributor amounted to $9,636 for Class B shares and $3,756 for Class C shares.

Transfer agent fees

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of each of Class A, Class B, Class C, Class R3, Class R4 and Class R5 share average daily net assets. This agreement is effective until December 31, 2006. Signature Services reserves the right to terminate this limitation in the future. In addition, Signature Services has voluntarily agreed to further limit transfer agent fees for Class R3, Class R4 and Class R5 shares so that such fees do not exceed 0.05% annually of each class’s average daily net assets. Accordingly, the transfer agent fees reductions amounted to $457, $797 and $918 for Class R3, Class R4 and Class R5 shares, respectively, during the period ended August 31, 2006. Signature Services reserves the right to terminate this limitation at any time.

Lifestyle Growth Portfolio

Expenses under the agreements described above for the period ended August 31, 2006, were as follows:

	Distribution and	Transfer		Printing and
Share Class	service fees	agent	Blue sky	postage


Class A	$114,180	$62,773	$22,848	$52,540
Class B	86,746	17,572	17,171	21,296
Class C	314,958	60,828	20,105	41,921
Class R3	2,098	644	16,055	2,098
Class R4	4,260	1,510	16,055	2,587
Class R5	28	1,277	17,961	2,828
Class 1	2,709,705	—	—	12,437
Class 5	—	—	—	—
Total	$3,231,975	$144,604	$110,195	$135,707

Trustees’ fees

The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. Total Trustees’ expenses are allocated based on each portfolio’s average daily net asset value.

4. Guarantees and Indemnifications

5. Capital shares

Share activities for the Portfolio for the period ended August 31, 2006 were as follows:

		Period ended 8-31-06^a
	Shares	Amount

Class A shares

Sold	7,413,437	$107,056,385
Distributions reinvested	3,180	44,453
Repurchased	(361,010)	(5,177,905)
Net increase	7,055,607	$101,922,933


Class B shares

Sold	1,720,077	$24,839,956
Distributions reinvested	435	6,092
Repurchased	(64,700)	(923,569)
Net increase	1,655,812	$23,922,479


Class C shares

Sold	6,576,277	$95,022,521
Distributions reinvested	1,182	16,531
Repurchased	(177,998)	(2,523,827)
Net increase	6,399,461	$92,515,225

Lifestyle Growth Portfolio

		Period ended 8-31-06^a
	Shares	Amount

Class R3 shares

Sold	152,570	$2,166,010
Repurchased	(351)	(5,030)
Net increase	152,219	$2,160,980


Class R4 shares

Sold	330,719	$4,841,734
Repurchased	(16,347)	(238,184)
Net increase	314,372	$4,603,550


Class R5 shares

Sold	113,625	$1,616,476
Distributions reinvested	136	1,904
Repurchased	(8,639)	(122,977)
Net increase	105,122	$1,495,403


Class 1 shares

Sold	486,658,311	$6,563,462,581
Distributions reinvested	2,554,657	35,586,379
Repurchased	(5,180,020)	(74,075,698)
Net increase	484,032,948	$6,524,973,262


Class 5 shares

Sold	225,361	$3,236,330
Net increase	225,361	$3,236,330


Net increase	499,940,902	$6,754,830,162

^aClass A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05, and Class 5 shares began operation on 7-3-06.

6. Investment transactions

Purchases and sales of the underlying funds during the period ended August 31, 2006, aggregated $8,524,500,996 and $1,729,339,820, respectively.

The cost of investments owned on August 31, 2006, including short-term investments, for federal income tax purposes, was $6,954,050,007. Gross unrealized appreciation and depreciation of investments aggregated $388,487,932 and $31,734,371, respectively, resulting in net unrealized appreciation of $356,753,561.

7. Investment in affiliated underlying funds

Lifestyle Growth Portfolio

Affiliate —	Shares	Shares	Ending Share		Ending
Class NAV	Purchased	Sold	Amount	Proceeds	Value

500 Index	12,089,572	12,089,572	—	$137,103,780	—
All Cap Core	14,682,279	360	14,681,919	3,516	$145,644,635
All Cap Growth	4,441,618	503	4,441,115	8,105	73,056,348
All Cap Value	9,212,669	719	9,211,950	10,557	145,548,808
Blue Chip Growth	20,040,836	3,632,144	16,408,692	66,335,476	292,074,718
Capital Appreciation	31,369,562	385,666	30,983,896	3,704,776	292,797,818
Core Bond	1,906,404	1,906,404	—	23,791,925	—
Core Equity	15,887,788	337,250	15,550,538	5,077,283	221,906,172
Emerging Small Company	847,802	847,802	—	23,704,534	—
Equity-Income	15,842,260	3,776,898	12,065,362	67,945,556	218,503,714
Fundamental Value	18,435,574	14,045	18,421,529	221,150	291,612,803
Global Bond	9,868,480	38,034	9,830,446	554,512	145,392,303
Global Real Estate	7,310,055	161,777	7,148,278	1,633,881	73,627,263
High Income	7,347,987	222	7,347,765	2,193	72,522,440
High Yield	49,487,268	13,305,085	36,182,183	138,978,920	364,716,402
International Core *	11,118,538	—	11,118,538	—	437,848,009
International Equity Index	7,708,246	11,617	7,696,629	218,015	146,005,059
International Opportunities	18,855,465	669,173	18,186,292	10,114,025	293,890,478
International Small Cap	13,640,102	6,676,151	6,963,951	146,611,771	145,894,773
International Small Company	15,667,855	511	15,667,344	4,841	146,176,323
International Stock	34,060,140	34,060,140	—	467,417,437	—
International Value	24,836,223	8,456,861	16,379,362	150,231,854	292,862,991
Large Cap	4,967,046	150	4,966,896	2,178	72,864,364
Large Cap Value	3,141,865	390	3,141,475	8,235	72,285,344
Mid Cap Core	16,461,476	3,731,855	12,729,621	66,837,266	219,713,260
Mid Cap Index	8,008,706	187	8,008,519	3,557	147,116,485
Mid Cap Stock	4,663,898	556	4,663,342	8,113	73,820,697
Mid Cap Value Equity	7,585,038	125	7,584,913	1,249	73,194,409
Mid Cap Value	3,495,079	3,495,079	—	67,769,033	—
Natural Resources	11,432,617	3,241,253	8,191,364	103,589,110	291,612,553
Quantitative Value	13,222,684	25,357	13,197,327	401,451	218,547,736
Real Estate Equity	7,095,201	385,979	6,709,222	4,152,945	73,734,347
Real Estate Securities	5,204,204	5,204,204	—	141,368,436	—
Real Return Bond	16,768,155	364,201	16,403,954	4,831,760	218,500,667
Small Cap	5,289,400	627	5,288,773	8,668	74,254,376
Small Cap Index	4,668,371	156	4,668,215	2,528	74,458,026
Small Cap Opportunities	6,372,833	23,838	6,348,995	605,478	146,915,745
Small Company Growth	6,665,521	193	6,665,328	2,237	73,918,490
Small Company Value	3,137,535	652	3,136,883	14,139	74,124,541
Special Value	3,591,766	112	3,591,654	2,347	73,700,746
Spectrum Income	14,158,647	1,658	14,156,989	16,730	145,392,276
Strategic Bond	11,801,069	5,643,351	6,157,718	67,098,154	72,476,340
Strategic Income	7,208,792	337	7,208,455	3,351	72,517,058
Total Return	21,489,547	281,666	21,207,881	3,826,406	291,608,367
U.S. Global
Leaders Growth	17,290,244	846	17,289,398	10,907	219,229,572
U.S. High Yield Bond	7,404,354	1,856,541	5,547,813	23,726,652	72,398,961
U.S. Multi Sector	49,220,942	2,136	49,218,806	22,115	512,367,776
Value & Restructuring	6,588,998	114	6,588,884	1,323	73,004,837
Vista	6,931,735	112,526	6,819,209	1,351,345	72,965,538

*Represents the Portfolio’s investment in John Hancock Funds III International Core Fund

Lifestyle Growth Portfolio

29

8. Reclassification of accounts

During the period ended August 31, 2006, the Portfolio reclassified amounts to reflect a decrease in accumulated net realized gain on investments of $14,258,350, an increase in accumulated net investment income of $14,928,361 and a decrease in capital paid-in of $670,011. This represents the amounts necessary to report these balances on a tax basis, excluding certain temporary differences, as of August 31, 2006. Additional adjustments may be needed in subsequent reporting periods. These reclassifications, which have no impact on the net asset value of the Portfolio, are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America and book and tax differences in accounting for non-deductible organizational costs. The calculation of net investment income per share in the Portfolio’s Financial Highlights excludes these ad justments.

Lifestyle Growth Portfolio

30

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of John Hancock Lifestyle Growth Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of securities owned, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of John Hancock Lifestyle Growth Portfolio (the “Portfolio”) at August 31, 2006, and the results of its operations, the changes in its net assets, and the financial highlights for the period October 15, 2005 (commencement of operations) through August 31, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Portfolio’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2006, by correspondence with the transfer agent, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolio, if any, paid during its taxable year ended August 31, 2006.

With respect to the ordinary dividends paid by the Portfolio for the fiscal period ended August 31, 2006, 35.60% of the dividends qualify for the corporate dividends-received deduction.

The Portfolio hereby designates the maximum amount allowable of its net taxable income as quali-fied dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2006.

Shareholders will be mailed a 2006 U.S. Treasury Department Form 1099-DIV in January 2007. This will reflect the total of all distributions that are taxable for calendar year 2006.

Trustees and Officers

Independent Trustees

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Bardelis, Born: 1941	2005	209
President and Executive Officer, Island Commuter Corp. (Marine Transport).
Trustee of John Hancock Trust (since 1988) and John Hancock Funds III (since 2005).


Peter S. Burgess, Born: 1942	2005	209
Consultant (financial, accounting and auditing matters (since 1999);
Certified Public Accountant; Partner, Arthur Andersen (prior to 1999).
Director of the following publicly traded companies: PMA Capital Corporation
(since 2004) and Lincoln Educational Services Corporation (since 2004).
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


Elizabeth G. Cook, Born: 1937	2005	209
Expressive Arts Therapist, Massachusetts General Hospital (September 2001
to present); Expressive Arts Therapist, Dana Farber Cancer Institute
(September 2000 to January 2004); President, The Advertising Club of Greater Boston.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


William H. Cunningham, Born: 1944	2005	160
Former Chancellor, University of Texas System and former President of the
University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies
(until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting,
Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing)
(since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods
Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation
(insurance) (since 2006), Jefferson-Pilot Corporation (diversified life insurance
company) (until 2006), New Century Equity Holdings (formerly Billing Concepts)
(until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures
(until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems
Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive
Bridge, Inc. (college fundraising) (until 2001); Advisory Director, Q Investments
(until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce
Bank - Austin), LIN Television (since 2002), WilTel Communications (until 2003)
and Hayes Lemmerz International, Inc. (diversified automotive parts supply
company) (since 2003). Trustee of John Hancock Funds (since 2005) and
John Hancock Funds III (since 2005).

Independent Trustees (continued)

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Ladner, Born: 1938	2005	160
Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003);
Senior Vice President and Chief Financial Officer, UGI Corporation (public utility
holding company) (retired 1998); Vice President and Director for AmeriGas, Inc.
(retired 1998); Director of AmeriGas Partners, L.P. (until 1997)(gas distribution);
Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association
(since 2007). Trustee of John Hancock Funds (since 2004) and John Hancock
Funds III (since 2005).


Hassell H. McClellan, Born: 1945	2005	209
Associate Professor, The Wallace E. Carroll School of Management, Boston College.
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).


James. M. Oates, Born: 1946	2005	209
Managing Director, Wydown Group (financial consulting firm)(since 1994);
Chairman, Emerson Investment Management, Inc. (since 2000); Chairman,
Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services
company) (since 1997). Director of the following publicly traded companies:
Stifel Financial (since 1996); Investor Financial Services Corporation (since 1995);
and Connecticut River Bancorp, Director (since 1998). Director, Phoenix Mutual
Funds (since 1988; overseeing 20 portfolios). Trustee of John Hancock Trust
(since 2004) and John Hancock Funds III (since 2005).

Non-Independent Trustee³

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

James R. Boyle, Born: 1959	2005	262
Chairman and Director, John Hancock Advisers, LLC (the “Adviser”),
The Berkeley Financial Group, LLC (“The Berkeley Group”) (hold-
ing company) and John Hancock Funds, LLC (since 2005); President,
John Hancock Annuities; Executive Vice President, John Hancock
Life Insurance Company (since June, 2004); President U.S. Annuities;
Senior Vice President, The Manufacturers Life Insurance Company
(U.S.A) (prior to 2004).


Principal officers who are not Trustees

Name, age
*Position(s) held with Portfolio*		Officer of
Principal occupation(s) and		Portfolio
directorships during past 5 years		since

Keith Hartstein², Born: 1956		2005
President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director,
President and Chief Executive Officer, the Adviser and The Berkeley Group, John
Hancock Funds, LLC (since 2005); Director, MFC Global Investment Management
(U.S.), LLC (“MFC Global (U.S.)”) (since 2005); Director, John Hancock Signature
Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock
Investment Management Services, LLC (since 2006); President and Chief Executive
Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III,
John Hancock Trust,; Director, Chairman and President, NM Capital Management,
Inc. (since 2005); Chairman, Investment Company Institute Sales Force Marketing
Committee (since 2003); Director, President and Chief Executive Officer, MFC
Global (U.S.) (2005-2006); Executive Vice President, John Hancock Funds, LLC
(until 2005).


John Vrysen², Born: 1955		2005
Chief Financial Officer
Director, Executive Vice President and Chief Financial Officer, the Adviser, The
Berkeley Group and John Hancock Funds, LLC (since 2005); Executive Vice
President and Chief Financial Officer, John Hancock Investment Management
Services, LLC (since 2005), Vice President and Chief Financial Officer, MFC
Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since
2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John
Hancock Funds III, John Hancock Trust (since 2005); Vice President and General
Manager, Fixed Annuities, U.S. Wealth Management (until 2005); Vice President,
Operations Manulife Wood Logan (2000-2004).

Principal officers who are not Trustees (continued)

Name, age
*Position(s) held with Portfolio*	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since

Francis V. Knox, Jr.², Born: 1947	2005
Vice President and Chief Compliance Officer, John Hancock Investment
Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief
Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock
Funds III and John Hancock Trust (since 2005); Vice President and Assistant
Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics &
Compliance Officer, Fidelity Investments (until 2001).


Gordon Shone², Born: 1956	2005
Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock
Funds III and John Hancock Trust (since 2005); Vice President and Chief Financial
Officer, John Hancock Trust (2003-2005); Senior Vice President, John Hancock
Life Insurance Company (U.S.A.) (since 2001); Vice President, John Hancock
Investment Management Services, Inc. and John Hancock Advisers, LLC (since
2006), The Manufacturers Life Insurance Company (U.S.A.) (1998 to 2000).


Thomas M. Kinzler², Born: 1955	2006
Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.)
(since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John
Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006);
Vice President and Associate General Counsel for Massachusetts Mutual Life
Insurance Company (1999-2006); Secretary and Chief Legal Counsel for MML
Series Investment Fund (2000-2006); Secretary and Chief Legal Counsel for
MassMutual Institutional Funds (2000-2004); Secretary and Chief Legal Counsel
for MassMutual Select Funds and MassMutual Premier Funds (2004-2006).

²Affiliated with the investment adviser.

³Non-Independent Trustee: holds positions with the Fund’s investment adviser, underwriter, and/ or certain other affiliates.

For more information

The Portfolio’s proxy voting policies, procedures and records are available without charge, upon request:

By phone	On the Portfolio’s Web site	On the SEC’s Web site
1-800-225-5291	www.jhfunds.com/proxy	www.sec.gov


Investment adviser	Custodian	Legal counsel
John Hancock Investment	State Street Bank & Trust Co.	Kirkpatrick & Lockhart
Management Services, LLC	2 Avenue de Lafayette	Nicholson Graham LLP
601 Congress Street	Boston, MA 02111	1 Lincoln Street
Boston, MA 02210-2805		Boston, MA 02111
	Transfer agent
Principal distributor	John Hancock Signature	Independent registered
John Hancock Funds, LLC	Services, Inc.	public accounting firm
601 Congress Street	1 John Hancock Way,	PricewaterhouseCoopers LLP
Boston, MA 02210-2805	Suite 1000	125 High Street
	Boston, MA 02217-1000	Boston, MA 02110

carefully before investing or sending money.

How to contact us


Internet	www.jhfunds.com


Mail	Regular mail:	Express mail:
	John Hancock	John Hancock
	Signature Services, Inc.	Signature Services, Inc.
	1 John Hancock Way, Suite 1000	Mutual Fund Image Operations
	Boston, MA 02217-1000	380 Stuart Street
		Boston, MA 02116
Phone	Customer service representatives	1-888-225-5291
	24-hour automated information	1-800-338-8080
	TDD line	1-800-554-6713

J O H N H A N C O C K F A M I L Y O F F U N D S

Equity
Balanced Fund
Classic Value Fund
Classic Value Fund II
Core Equity Fund
Focused Equity Fund
Growth Fund
Growth Opportunities Fund
Growth Trends Fund
Intrinsic Value Fund
Large Cap Equity Fund
Large Cap Select Fund
Mid Cap Equity Fund
Mid Cap Growth Fund
Multi Cap Growth Fund
Small Cap Equity Fund
Small Cap Fund
Small Cap Intrinsic Value Fund
Sovereign Investors Fund
U.S. Core Fund
U.S. Global Leaders Growth Fund
Value Opportunities Fund

ASSET ALLOCATION & LIFESTYLE
Allocation Core Portfolio
Allocation Growth + Value Portfolio
Lifestyle Aggressive Portfolio
Lifestyle Balanced Portfolio
Lifestyle Conservative Portfolio
Lifestyle Growth Portfolio
Lifestyle Moderate Portfolio

SECTOR
Financial Industries Fund
Health Sciences Fund
Real Estate Fund
Regional Bank Fund
Technology Fund
Technology Leaders Fund

INTERNATIONAL
Greater China Opportunities Fund
International Classic Value Fund
International Core Fund
International Fund
International Growth Fund

INCOME
Bond Fund
Government Income Fund
High Yield Fund
Investment Grade Bond Fund
Strategic Income Fund

TAX-FREE INCOME
California Tax-Free Income Fund
High Yield Municipal Bond Fund
Massachusetts Tax-Free Income Fund
New York Tax-Free Income Fund
Tax-Free Bond Fund

MONEY MARKET
Money Market Fund
U.S. Government Cash Reserve

CLOSED-END
Bank & Thrift Opportunity
Financial Trends
Income Securities
Investors Trust
Patriot Global Dividend
Patriot Preferred Dividend
Patriot Premium Dividend I
Patriot Premium Dividend II
Patriot Select Dividend
Preferred Income
Preferred Income II
Preferred Income III
Tax-Advantaged Dividend

1-800-225-5291
1-800-554-6713 (TDD)
1-800-338-8080 EASI-Line

www.jhfunds. com

Now available: electronic delivery
www.jhfunds. com/edelivery

This report is for the information of the shareholders of John Hancock Lifestyle Growth Portfolio.

0400A 8/06
10/06

TABLE OF CONTENTS

Managers' report

page 2

A look at performance

page 6

Your expenses

page 8

Portfolio’s investments

page 10

Financial statements

page 12

Trustees and officers

page 33

For more information

page 40

CEO corner

To Our Shareholders,

The future has arrived at John Hancock Funds.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of August 31, 2006. They are subject to change at any time.

Your portfolio at a glance

The Portfolio seeks a balance between a high level of current income and growth of capital, with a greater emphasis on income. To pursue this goal, the Portfolio, which is a fund-of-funds, normally invests approximately 60% of its assets in underlying funds that invest primarily in fixed-income securities and approximately 40% of its assets in underlying funds that invest primarily in equity securities.

Since inception*

► Most fixed-income funds turned in low single-digit gains as investors continued to worry about rising inflation and higher interest rates.

► The high yield asset class continued to provide strong performance, thanks to investors’ willingness to take on extra credit risk in exchange for higher levels of income relative to other fixed-income investments.

► The Portfolio’s international equity, domestic equity large-cap value and real estate securities funds helped boost returns for our shareholders.

Target asset allocation

Equity	% of Total	Fixed Income	% of Total

U.S. Large Cap	21.0	Intermediate Term Bond	22.0

International	11.0	High Yield Bond	12.0

Real Estate	4.0	Multi-Sector Bond	12.0

U.S. Small Cap	4.0	Global Bond	6.0

		Treasury Inflation- Protected Securities	4.0

		Long-Term Bond	2.0

		Short-Term Bond	2.0

Managers’ report

John Hancock
Lifestyle Moderate Portfolio

Fixed-income securities — which make up approximately 60% of the Portfolio’s assets — generally gained ground but produced mediocre results, with the broad bond market returning 3.33%, as measured by the Lehman Brothers Aggregate Bond Index. A steady stream of interest rate increases from the Federal Reserve Board (the Fed) weighed on bonds’ results. On August 31, 2006, the federal funds rate stood at 5.25%, up from 3.75% the previous October. Once again, the strongest performers in the fixed-income market were lower-rated, higher-yielding bonds. Against a backdrop of low default rates and continued strong fundamentals from bond issuers, credit spreads — the difference in yield among bonds of various credit quality — continued to narrow but ended the period at historically very tight levels.

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE...AND WHAT’S BEHIND THE NUMBERS

High Yield (Western)	▲	Continued to benefit in an environment of narrowing credit spreads.
Real estate securities	▲	Benefited from continued fundamental strengthening and demand
		for the securities’ high dividend yields.
U.S. Multi-Sector (GMO)	▼	Emphasis on certain higher-quality large-cap growth stocks
		detracted from performance in an environment favoring smaller,
		more-speculative names.

From The MFC Global Investment Management (U.S.A.) LLC’s
Portfolio Management Team

which growth took the lead. International stocks were particularly strong performers, benefiting from continued relative weakness in the U.S. dollar and greater uncertainty about the direction of interest rates in the United States.

“During the period, we were
successful in developing a
portfolio of funds to outperform
the overall bond market without
exposing our shareholders to
excess levels of volatility.”

Performance summary

John Hancock Lifestyle Moderate Portfolio’s Class A, Class B, Class C, Class R3, Class R4 and Class R5, which began operations on October 18, 2005, produced total returns of 7.10%, 6.42%, 6.49%, 7.10%, 7.14% and 7.40%, respectively, at net asset value through August 31, 2006. Class 1 shares returned 7.47% at net asset value since beginning operation October 15, 2005 and Class 5 shares returned 2.27% at net asset value since beginning operation July 3, 2006. In comparison, the Portfolio’s benchmark — a 40/60 blend of the S&P 500 Index and the Lehman Brothers Aggregate Bond Index — returned 6.09%, and Morningstar’s average moderate allocation portfolio returned 6.35% .¹ Keep in mind that your net asset value return will be different from the Portfolio’s performance if you were not invested in the Portfolio for the entire period and did n ot reinvest all distributions. Please see pages six and seven for historical performance information.

Benefits of diversification

During the period, we were successful in developing a portfolio of funds to outperform the overall bond market without exposing our shareholders to excess levels of volatility. Much of these diversification benefits came from our approximately 40% stake in equity offerings — both domestic and international — including our exposure to the strong-performing real estate securities market.

Lifestyle Moderate Portfolio

On the domestic equity side, for example, we were helped by a number of our large-cap value-oriented investments, such as Equity Income (+13.54%, T. Rowe Price) and Fundamental Value (+10.87%, Davis). Those strong results were offset somewhat by relative weakness in Core Equity (+3.63%, Legg Mason) and U.S. Multi-Sector (4.25%, GMO), both of which trailed the S&P 500. Our international stock investments were significant contributors, as their returns were well in excess of the overall bond market. In particular, the Fund benefited from its positions in International Core (+22.19%, GMO) and International Opportunities (+23.51%, Marsico). In the real estate sector, our holdings in Real Estate Securities (+30.96%, Deutsche Asset Management) provided particularly strong results and we trimmed this position and reallocated to Global Real Estate.

Diversification also helped within the fixed-income portion of the Portfolio, especially with our high-yield bond investments, which continued to enjoy strong gains. High Yield (+6.49%, Western) was one particularly favorable contributor to performance during the reporting period. The diversification theme also extended to individual fixed-income funds in the Portfolio, such as Spectrum Income (+5.47%, T. Rowe Price), whose managers have the flexibility to invest in multiple sectors of the bond market. At 8% of the Portfolio’s assets, Spectrum Income is one of our largest allocations. Other large Portfolio holdings generally performed in line with their benchmarks, including Total Return (+3.18%, PIMCO), at 12% of assets, and Active Bond (+2.98%, MFC Global Investment Management (U.S.) LLC/Declaration), at 8%.

Portfolio changes

To improve the Portfolio’s diversification within the high yield bond asset class, during the second quarter of 2006 we reduced our exposure to the High Yield fund, which was formerly managed by Salomon Brothers Asset Management and is now managed by Western Asset Management. For further diversification, we used the proceeds of this sale to establish a new Portfolio holding, High Income, managed by MFC Global. We also added to our weighting in U.S. High Yield Bond, managed by Wells Capital Management. Meanwhile, within our multi-sector bond allocation, we trimmed our Strategic Bond (Western) holding while slightly increasing our Spectrum Income weighting and initiating a position in Strategic Income (MFC Global).

Lifestyle Moderate Portfolio

We also increased our diversification within the real estate asset class by adding exposure to non-U.S. real estate securities. Because the real estate market outside the United States is less well developed, we believe it offers greater inefficiency and therefore greater return potential. We established a new allocation to Global Real Estate, managed by Deutsche Asset Management.

“On the domestic equity side, for
example, we were helped
by a number of our large-cap
value-oriented investments...”

Outlook

We believe the stage may be set for high-quality, large-cap stocks to finally take the lead over their mid- and small-cap counterparts. Accordingly, we have positioned the Portfolio to benefit from such a potential scenario, maintaining a slight overweight in funds that own high-quality, large-cap stocks. If, however, investors continue their preference for higher-risk, lower-quality asset classes, we believe our broadly diversified Portfolio can help capture these performance gains while effectively managing volatility for our shareholders.

As interest rates have risen, bonds have encountered some difficulty. However, we note that the diversification provided by the Portfolio worked exactly as expected during the period. Although it may seem like a contradiction, maintaining a moderate allocation to more aggressive assets such as stocks, global bonds and real estate actually reduced risk and improved returns in a majority fixed-income portfolio. This is an excellent example of the power of diversification and asset allocation — and why we believe the Portfolio can be an important component of a moderate investor’s portfolio.

Lifestyle Moderate Portfolio

A look at performance

For the period ending August 31, 2006

		Cumulative total returns
		with maximum sales charge (POP)

	Inception	Since
Class	date	Inception^a

A	10-18-05	1.75%

B	10-18-05	1.42

C	10-18-05	5.49

R3^b	10-18-05	7.10

R4^b	10-18-05	7.14

R5^b	10-18-05	7.40

1^b	10-15-05	7.47

5^b	7-3-06	2.27

The performance table above and the chart on the next page do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

The Portfolio’s performance results reflect any applicable expense reductions, without which the expenses would increase and results would have been less favorable.

Since inception performance is calculated with an opening price (prior day’s close) on the inception date.

^aClass A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05 and Class 5 shares began operation on 7-3-06.

^b For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5, Class 1 and Class 5 share prospectuses.

Lifestyle Moderate Portfolio

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in a blended index.

Class	Period beginning	Without sales charge	With maximum sales charge	Index

B ⁴	10-18-05	$10,642	$10,142	$10,609

C ⁴	10-18-05	10,649	10,549	10,609

R3^1,4	10-18-05	10,710	10,710	10,609

R4^1,4	10-18-05	10,714	10,714	10,609

R5^1,4	10-18-05	10,740	10,740	10,609

1^1,2	10-15-05	10,747	10,747	10,488

5^1,3	7-3-06	10,227	10,227	10,295

Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the Portfolio’s Class B, Class C, Class R3, Class R4, Class R5, Class 1 and Class 5 shares, respectively, as of August 31, 2006. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

A blended index is used when combining 40% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 60% of the Lehman Brothers Aggregate Bond Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

¹ For certain types of investors as described in the Portfolio’s Class R3, Class R4, Class R5, Class 1 and Class 5 share prospectuses.

² Index figure from 9-30-05.

³ Index figure from 6-30-06.

⁴ Index figure from 10-31-05.

Lifestyle Moderate Portfolio

Your expenses

These examples are intended to help you understand your ongoing operating expenses.

Understanding Portfolio expenses

As a shareholder of the Portfolio, you incur two types of costs:

■ Transaction costs which include sales charges (loads) on purchases or redemptions (varies by share class), minimum account fee charge, etc.

■ Ongoing operating expenses including management fees, distribution and service fees (if applicable) and other Portfolio expenses.

We are going to present only your ongoing operating expenses here.

Actual expenses/actual returns

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06 ^a

Class A	$1,000.00	$1,015.90	$2.90

Class B	1,000.00	1,011.60	6.84

Class C	1,000.00	1,012.30	6.54

Class R3	1,000.00	1,017.10	3.46

Class R4	1,000.00	1,016.10	2.49

Class R5	1,000.00	1,017.40	0.92

Class 1	1,000.00	1,018.60	0.56

Class 5 ^b	1,000.00	1,022.70	0.02

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at

Lifestyle Moderate Portfolio

Hypothetical example for comparison purposes

	Account value	Ending value	Expenses paid during period
	on 3-1-06	on 8-31-06	ended 8-31-06 ^a

Class A	$1,000.00	$1,022.33	$2.91

Class B	1,000.00	1,018.40	6.87

Class C	1,000.00	1,018.70	6.56

Class R3	1,000.00	1,021.78	3.47

Class R4	1,000.00	1,022.74	2.50

Class R5	1,000.00	1,024.30	0.92

Class 1	1,000.00	1,024.65	0.56

Class 5 ^b	1,000.00	1,008.20	0.02

^aExpenses are equal to the Portfolio’s annualized expense ratio of 0.57%, 1.35%, 1.29%, 0.68%, 0.49%, 0.18%, 0.11% and 0.01% for Class A, Class B, Class C, Class R3, Class R4, Class R5, Class 1 and Class 5, respectively, multiplied by the average account value over the period, multiplied by the number of days in the period /365 or 366 (to reflect the one-half year period). The expense ratios do not include fees and expenses incurred by the Portfolio from the underlying funds.

^b Class 5 shares began operation on 7-3-06.

Lifestyle Moderate Portfolio

Portfolio’s investments

Securities owned by the Portfolio on 8-31-06
Portfolio of investments, showing all underlying funds.

Issuer	Shares	Value

Investment companies 99.97%		$1,871,324,713

(Cost $1,817,133,945)

John Hancock Funds II

Active Bond Fund Class NAV	15,570,987	$149,481,471

Blue Chip Growth Fund Class NAV	5,262,463	93,671,836

Core Bond Fund Class NAV	2,973,803	37,202,272

Core Equity Fund Class NAV	5,321,191	75,933,397

Equity-Income Fund Class NAV	2,060,856	37,322,101

Fundamental Value Fund Class NAV	4,714,343	74,628,043

Global Bond Fund Class NAV	7,576,371	112,054,531

Global Real Estate Fund Class NAV	3,666,366	37,763,573

High Income Fund Class NAV	5,665,191	55,915,434

High Yield Fund Class NAV	11,116,571	112,055,038

International Equity Index Fund Class NAV	1,974,971	37,465,196

International Opportunities Fund Class NAV	1,165,892	18,840,809

International Value Fund Class NAV	3,151,314	56,345,489

Investment Quality Bond Fund Class NAV	3,166,140	37,202,151

Real Estate Equity Fund Class NAV	3,443,977	37,849,311

Real Return Bond Fund Class NAV	5,602,786	74,629,115

Small Cap Fund Class NAV	1,357,954	19,065,668

Small Company Fund Class NAV	2,434,385	37,586,907

Small Company Value Fund Class NAV	804,498	19,010,298

Spectrum Income Fund Class NAV	14,555,152	149,481,407

Strategic Bond Fund Class NAV	3,160,762	37,202,169

Strategic Income Fund Class NAV	3,699,314	37,215,095

Total Return Fund Class NAV	16,315,260	224,334,826

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Issuer	Shares	Value

John Hancock Funds II — continued

U.S. Government Securities Fund Class NAV	2,743,515	$37,202,058

U.S. High Yield Bond Fund Class NAV	4,284,689	55,915,191

U.S. Multi Sector Fund Class NAV	7,213,778	75,095,428

Value & Restructuring Fund Class NAV	3,378,940	37,438,660

John Hancock Funds III

International Core Fund Class NAV	2,372,200	93,417,239


Total investments 99.97%		$1,871,324,713


Other assets in excess of liabilities 0.03%		$542,121


Total net assets 100.00%		$1,871,866,834

Percentages are stated as a percent of net assets of the Portfolio

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial statements

Statement of assets and liabilities 8-31-06

Assets

Investments in affiliated funds, at value (cost $1,817,133,945)	$1,871,324,713
Receivable for fund shares sold	2,776,322
Other assets	5,512
Total assets	1,874,106,547

Liabilities

Payable for investments purchased	1,994,394
Payable for fund shares repurchased	55,364
Payable to affiliates
Fund administration fees	35,928
Transfer agent fees	16,409
Trustees’ fees	391
Due to adviser	9,267
Other payables and accrued expenses	127,960
Total liabilities	2,239,713

Net assets

Capital paid-in	1,785,340,876
Accumulated net realized gain on investments	29,534,707
Net unrealized appreciation on investments	54,190,768
Accumulated net investment income	2,800,483
Net assets	$1,871,866,834

Net asset value per share

Based on net asset values and shares outstanding
— the Portfolio has an unlimited number of shares authorized with no par value
Class A ($25,494,946 ÷ 1,869,382 shares)	$13.64
Class B ($4,974,279 ÷ 365,228 shares)	$13.62
Class C ($17,552,052 ÷ 1,287,959 shares)	$13.63
Class R3 ($767,362 ÷ 56,236 shares)	$13.65
Class R4 ($1,096,530 ÷ 80,450 shares)	$13.63
Class R5 ($644,004 ÷ 47,199 shares)	$13.64
Class 1 ($1,820,059,336 ÷ 133,544,957 shares)	$13.63
Class 5 ($1,278,325 ÷ 93,854 shares)	$13.62

Maximum offering price per share

Class A¹($13.64 ÷ 95%)	$14.36

¹ 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

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of operations For the period ended 8-31-06^a

This Statement of Operations summarizes the Portfolio’s investment income earned and expenses incurred in operating the Portfolio. It also shows net gains (losses) for the period stated.

Investment income

Income distributions received from affiliated underlying funds	$33,550,119

Total investment income	33,550,119

Expenses

Investment management fees (Note 3)	603,786
Distribution and service fees (Note 3)	806,941
Transfer agent fees (Note 3)	24,255
Blue sky fees (Note 3)	98,749
Printing and postage fees (Note 3)	36,479
Fund administration fees (Note 3)	129,402
Audit and legal fees	74,078
Custodian fees	10,722
Trustees’ fees (Note 3)	17,410
Registration and filing fees	53,994
Miscellaneous	13,541

Total expenses	1,869,357
Less expense reductions (Note 3)	(116,541)

Net expenses	1,752,816

Net investment income	31,797,303

Realized and unrealized gain

Net realized gain on Investments	29,511,991
Capital gain distributions received from affiliated underlying funds	3,107,989
Change in net unrealized appreciation of Investments	54,190,768

Net realized and unrealized gain	86,810,748

Increase in net assets from operations	$118,608,051

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Statement of changes in net assets

	Period
	ended
	8-31-06^a

Increase (decrease) in net assets

From operations
Net investment income	$31,797,303
Net realized gain	32,619,980
Change in net unrealized appreciation	54,190,768

Increase in net assets resulting from operations	118,608,051

Distributions to shareholders
From net investment income
Class A	(171,868)
Class B	(22,967)
Class C	(77,475)
Class R3	(6,081)
Class R4	(10,781)
Class R5	(8,339)
Class 1	(31,963,702)
Class 5	(490)
	(32,261,703)
From Fund share transactions	1,785,520,486

Net assets

End of period	$1,871,866,834

Accumulated net investment income	$2,800,483

^a Period from 10-15-05 (commencement of operations) to 8-31-06.

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

The Financial Highlights show how the Portfolio’s net asset value for a share has changed since the beginning of the period.

CLASS A SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.94
Net investment income ^h,v	0.25
Net realized and unrealized
gain on investments	0.66
Total from investment operations	0.91
Less distributions
From net investment income	(0.21)
	(0.21)
Net asset value, end of period	$13.64
Total return ^k,l(%)	7.10^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$25
Ratio of net expenses to average
net assets ^q(%)	0.57^r
Ratio of gross expenses to average
net assets ^p,q(%)	0.83^r
Ratio of net investment income
to average net assets ^v(%)	2.21^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS B SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.94
Net investment income ^h,v	0.15
Net realized and unrealized
gain on investments	0.68
Total from investment operations	0.83
Less distributions
From net investment income	(0.15)
	(0.15)
Net asset value, end of period	$13.62
Total return ^k,l(%)	6.42^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$5
Ratio of net expenses to average
net assets ^q(%)	1.34^r
Ratio of gross expenses to average
net assets ^p,q(%)	2.43^r
Ratio of net investment income
to average net assets ^v(%)	1.28^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS C SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.94
Net investment income ^h,v	0.17
Net realized and unrealized
gain on investments	0.67
Total from investment operations	0.84
Less distributions
From net investment income	(0.15)
	(0.15)
Net asset value, end of period	$13.63
Total return ^k,l(%)	6.49^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$18
Ratio of net expenses to average
net assets ^q(%)	1.29^r
Ratio of gross expenses to average
net assets ^p,q(%)	1.67^r
Ratio of net investment income
to average net assets ^v(%)	1.51^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R3 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.94
Net investment income ^h,v	0.33
Net realized and unrealized
gain on investments	0.58
Total from investment operations	0.91
Less distributions
From net investment income	(0.20)
	(0.20)
Net asset value, end of period	$13.65
Total return ^k,l(%)	7.10^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.69^r
Ratio of gross expenses to average
net assets ^p,q(%)	8.44^r
Ratio of net investment income
to average net assets ^v(%)	2.93^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R4 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.94
Net investment income ^h,v	0.30
Net realized and unrealized
gain on investments	0.62
Total from investment operations	0.92
Less distributions
From net investment income	(0.23)
	(0.23)
Net asset value, end of period	$13.63
Total return ^k,l(%)	7.14^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.49^r
Ratio of gross expenses to average
net assets ^p,q(%)	4.65^r
Ratio of net investment income
to average net assets ^v(%)	2.59^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS R5 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.94
Net investment income ^h,v	0.22
Net realized and unrealized
gain on investments	0.73
Total from investment operations	0.95
Less distributions
From net investment income	(0.25)
	(0.25)
Net asset value, end of period	$13.64
Total return ^k,l(%)	7.40^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.19^r
Ratio of gross expenses to average
net assets ^p,q(%)	4.86^r
Ratio of net investment income
to average net assets ^v(%)	1.92^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 1 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$12.93
Net investment income ^h,v	0.26
Net realized and unrealized
gain on investments	0.70
Total from investment operations	0.96
Less distributions
From net investment income	(0.26)
	(0.26)
Net asset value, end of period	$13.63
Total return ^k(%)	7.47^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1,820
Ratio of net expenses to average
net assets ^q(%)	0.11^r
Ratio of net investment income
to average net assets ^v(%)	2.23^r
Portfolio turnover (%)	24^m

See notes to financial statements

Lifestyle Moderate Portfolio

F I N A N C I A L S T A T E M E N T S

Financial highlights

CLASS 5 SHARES

Period ended	8-31-06^a

Per share operating performance

Net asset value, beginning of period	$13.48
Net investment loss ^h,v	—^j
Net realized and unrealized
gain on investments	0.30
Total from investment operations	0.30
Less distributions
From net investment income	(0.16)
	(0.16)
Net asset value, end of period	$13.62
Total return ^k(%)	2.27^m

Ratios and supplemental data

Net assets, end of period
(in millions)	$1
Ratio of net expenses to average
net assets ^q(%)	0.01^r
Ratio of net investment loss
to average net assets ^v(%)	(0.01)^r
Portfolio turnover (%)	24^m

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05, and Class 5 shares began operation on 7-3-06.

^h Based on the average of the shares outstanding.

^j Less than $0.01 per share.

^k Assumes dividend reinvestment and does not reflect the effect of sales charges.

^l Total returns would have been lower had certain expenses not been reduced during the period shown.

^m Not annualized.

^p Does not take into consideration expense reductions during the period shown.

^q Does not include expenses of the investment companies in which the Portfolio invests.

^r Annualized.

^v Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

See notes to financial statements

Lifestyle Moderate Portfolio

Notes to financial statements

1. Organization
The John Hancock Lifestyle Moderate Portfolio (the “Portfolio”) is a newly organized non-diversified series of John Hancock Funds II (the “Trust”). The Trust was established as a Massachusetts business trust on June 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end investment management company.

The Portfolio operates as a “fund of funds”, investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III and in other permitted investments.

John Hancock Investment Management Services, LLC (the “Adviser”), a Delaware limited liability company controlled by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”), serves as investment adviser for the Trust and John Hancock Funds, LLC (the “Distributor), an affiliate of the Adviser, serves as principal underwriter. John Hancock Life Insurance Company of New York (“John Hancock New York”) is a wholly owned subsidiary of John Hancock USA. John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (“Manulife”), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

The Portfolio commenced operations after certain separate accounts of John Hancock USA redeemed their interests in portfolios of John Hancock Trust and certain unaffiliated mutual funds of approximately $340 million at the close of business on October 14, 2005, with additional redemption proceeds of approximately $1.2 billion received on October 28, 2005, and invested such proceeds in Class 1 shares of the Portfolio, which in turn invested the proceeds in underlying funds of the Trust.

2. Significant accounting policies
In the preparation of the financial statements, the Portfolio follows the policies described below. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.

Lifestyle Moderate Portfolio

Securities valuation
The net asset value of the shares of the Portfolio is determined daily as of the close of the New York Stock Exchange, normally at 4:00 p.m. Eastern Time. Investments in underlying funds are valued at their respective net asset values each business day, or at fair value as determined in good faith in accordance with procedures approved by the Trustees. Securities in the underlying funds’ portfolios are valued in accordance with their respective valuation polices, as outlined in the underlying funds’ financial statements. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost.

Security transactions and related
investment income
Investment security transactions in the underlying funds are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income and capital gain distributions are recorded on the ex-dividend date.

Gains and losses on securities sold are determined on the basis of specific identified cost for both financial and federal income tax reporting purposes.

Multi-class operations
All income, expenses (except for class-specific expenses) and realized and unrealized gains (losses) are allocated to each class of shares based upon the relative net assets of each class. Dividends to shareholders from net investment income are determined at a class level and distributions from capital gains are determined at a Portfolio level.

Expense allocation
Expenses not directly attributable to a particular Portfolio or class of shares are allocated based on the relative share of net assets of the Portfolio at the time the expense was incurred. Class-specific expenses, such as transfer agency fees, blue sky fees, printing and postage fees and distribution and service fees, are accrued daily and charged directly to the respective share classes. Expenses in the Portfolio’s Statement of Operations reflect the expenses of the Portfolio and do not include any indirect expenses related to the underlying funds. Because the underlying funds have varied expense levels and the Portfolio may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the Portfolio will vary.

Federal income taxes
The Portfolio qualifies as a “regulated investment company” by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

New accounting pronouncement
In June 2006, Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”) was issued and is effective for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. This Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return, and requires certain expanded disclosures. Management is currently evaluating the application of the Interpretation to the Portfolio and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on the Portfolio’s financial statements.

Distribution of income and gains
The Portfolio records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date.

Lifestyle Moderate Portfolio

During the period ended August 31, 2006, the tax character of distributions paid was as follows: ordinary income $32,261,703. Distributions paid by the Portfolio with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Portfolio’s financial statements as a return of capital. As of August 31, 2006, the components of distributable earnings on a tax basis included $32,312,560 of undistributed ordinary income and $22,630 of undistributed long-term gain.

Capital accounts
The Portfolio reports the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carryforward is available). Accordingly, the Portfolio may periodically make reclassifications among certain capital accounts, without affecting its net asset value.

3. Investment advisory and
other agreements

Advisory fees
The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvisers to handle the investment and reinvestment of the assets of the Portfolio, subject to the supervision of the Board of Trustees. Under the Advisory Agreement, the Portfolio pays a monthly management fee to the Adviser equivalent, on an annual basis, to its pro rata portion of the sum of: (a) 0.05% of the first $7,500,000,000 of the aggregate daily net assets and (b) 0.04% of the aggregate daily net assets in excess of $7,500,000,000 of the five Lifestyle Portfolios of the Trust (Lifestyle Aggressive, Lifestyle Growth, Lifestyle Balanced, Lifestyle Moderate and Lifestyle Conservative) and the five Lifestyle Portfolios of John Hancock Trust (Lifestyle Aggressive, Lifestyle Growth, Lifestyle Balanced, Lifestyle Moderate and Lifestyle Conse rvative). The Portfolio is not responsible for payment of the subadvisory fees.

Expense reimbursements
The Adviser has contractually agreed to waive advisory fees or reimburse the Portfolio’s expenses for Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares to the extent that blue sky fees and printing and postage expenses attributable to each class exceed 0.09% of the average annual net assets attributable to the classes, at least until November 1, 2006, and may thereafter be terminated by the Adviser at any time. Accordingly, the expense reductions related to this expense limitation amounted to $21,158, $19,954, $21,099, $17,474, $17,021 and $18,272 for Class A, Class B, Class C, Class R3, Class R4 and Class R5, respectively, for the period ended August 31, 2006.

Administration fees
The Portfolio has an agreement with the Adviser that requires the Portfolio to reimburse the Adviser for all expenses associated with providing the administrative, financial, accounting and recordkeeping services of the Portfolio, including the preparation of all tax returns, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports.

Lifestyle Moderate Portfolio

Distribution plans
The Trust has a Distribution Agreement with the Distributor. The Portfolio has adopted Distribution Plans with respect to Class A, Class B, Class C, Class R3, Class R4 and Class 1, pursuant to Rule 12b-1 under the 1940 Act, to reimburse the Distributor for the services it provides as distributor of shares of the Portfolio. Accordingly, the Portfolio makes monthly payments to the Distributor at an annual rate not to exceed 0.30%, 1.00%, 1.00%, 0.50%, 0.25% and 0.05% of the average daily net assets of Class A, Class B, Class C, Class R3, Class R4 and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

Sales charges
Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the period ended August 31, 2006, the Portfolio was informed that the Distributor received net up-front sales charges of $488,042 with regard to sales of Class A shares. Of this amount, $79,302 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $402,557 was paid as sales commissions to unrelated broker-dealers and $6,183 was paid as sales commissions to sales personnel of Signator Investors, Inc. (“Signator Investors”), a related broker-dealer, an indirect subsidiary of MFC.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolio in connection with the sale of Class B and Class C shares. During the period ended August 31, 2006, the Portfolio was informed that CDSCs received by the Distributor amounted to $292 for Class B shares and $726 for Class C shares.

Transfer agent fees
The Portfolio has a Transfer Agency Agreement with John Hancock Signature Services, Inc. (“Signature Services”), an indirect subsidiary of MFC. For Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares, the Portfolio pays a monthly transfer agent fee at an annual rate of 0.05% of each class’s average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value.

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of each of Class A, Class B, Class C, Class R3, Class R4 and Class R5 share average daily net assets. This agreement is effective until December 31, 2006. Signature Services reserves the right to terminate this limitation in the future. In addition, Signature Services has voluntarily agreed to further limit transfer agent fees for Class R3, Class R4 and Class R5 shares so that such fees do not exceed 0.05% annually of each class’s average daily net assets. Accordingly, the transfer agent fees reductions amounted to $327, $615 and $621 for Class R3, Class R4 and Class R5 shares, respectively, during the period ended August 31, 2006. Signature Services reserves the right to terminate this limitation at any time.

Lifestyle Moderate Portfolio

Expenses under the agreements described above for the period ended August 31, 2006, were as follows:

	Distribution	Transfer		Printing and
Share Class	and service fees	agent	Blue sky	postage


Class A	$24,411	$10,212	$16,557	$11,925
Class B	18,261	3,658	16,196	5,402
Class C	55,889	8,369	17,409	8,720
Class R3	1,158	427	15,925	1,757
Class R4	1,256	817	15,925	1,481
Class R5	2	772	16,737	1,903
Class 1	705,964	—	—	5,291
Class 5	—	—	—	—
Total	$806,941	$24,255	$98,749	$36,479

Trustees’ fees
The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. Total Trustees’ expenses are allocated based on each Portfolio’s average daily net asset value.

4. Guarantees and Indemnifications

5. Capital shares

Share activities for the Portfolio for the period ended August 31, 2006 were as follows:

	Period ended 8-31-06 ^a
	Shares	Amount

Class A shares

Sold	1,906,772	$25,643,938
Distributions reinvested	11,786	156,721
Repurchased	(49,176)	(660,565)
Net increase	1,869,382	$25,140,094

Class B shares

Sold	394,049	$5,293,647
Distributions reinvested	1,374	18,275
Repurchased	(30,195)	(405,623)
Net increase	365,228	$4,906,299

Class C shares

Sold	1,313,617	$17,670,307
Distributions reinvested	5,335	70,936
Repurchased	(30,993)	(417,164)
Net increase	1,287,959	$17,324,079

Lifestyle Moderate Portfolio

	Period ended 8-31-06 ^a
	Shares	Amount

Class R3 shares

Sold	61,803	$824,287
Distributions reinvested	339	4,515
Repurchased	(5,906)	(79,750)
Net increase	56,236	$749,052

Class R4 shares

Sold	81,786	$1,104,574
Distributions reinvested	680	9,033
Repurchased	(2,016)	(27,039)
Net increase	80,450	$1,086,568

Class R5 shares

Sold	48,649	$647,657
Distributions reinvested	482	6,410
Repurchased	(1,932)	(26,226)
Net increase	47,199	$627,841

Class 1 shares

Sold	134,937,718	$1,753,494,793
Distributions reinvested	2,410,929	31,963,702
Repurchased	(3,803,690)	(51,025,836)
Net increase	133,544,957	$1,734,432,659

Class 5 shares

Sold	93,828	$1,253,556
Distributions reinvested	37	490
Repurchased	(11)	(152)
Net increase	93,854	$1,253,894

Net increase	137,345,265	$1,785,520,486

^a Class A, Class B, Class C, Class R3, Class R4 and Class R5 shares began operations on 10-18-05, Class 1 shares began operation on 10-15-05, and Class 5 shares began operation on 7-3-06 .

6. Investment transactions

Purchases and sales of the underlying funds during the period ended August 31, 2006, aggregated $2,196,540,459 and $408,918,505, respectively.

The cost of investments owned on August 31, 2006, including short-term investments, for federal income tax purposes, was $1,817,133,945. Gross unrealized appreciation and depreciation of investments aggregated $55,136,252 and $945,484, respectively, resulting in net unrealized appreciation of $54,190,768.

7. Investment in affiliated underlying funds

Lifestyle Moderate Portfolio

Affiliate —	Shares	Shares	Ending Share		Ending
Class NAV	Purchased	Sold	Amount	Proceeds	Value

500 Index	3,089,655	3,089,655	—	$35,037,957	—
Active Bond	15,858,658	287,671	15,570,987	2,733,917	$149,481,471
All Cap Value	503,231	503,231	—	6,999,944	—
Blue Chip Growth	5,383,508	121,045	5,262,463	2,150,429	93,671,836
Core Bond	2,986,459	12,656	2,973,803	156,371	37,202,272
Core Equity	5,511,368	190,177	5,321,191	2,822,430	75,933,397
Equity-Income	2,070,645	9,789	2,060,856	175,970	37,322,101
Fundamental Value	4,728,089	13,746	4,714,343	214,770	74,628,043
Global Bond	7,761,491	185,120	7,576,371	2,690,729	112,054,531
Global Real Estate	3,748,449	82,083	3,666,366	824,336	37,763,573
High Income	5,665,883	692	5,665,191	6,852	55,915,434
High Yield	17,895,000	6,778,429	11,116,571	70,799,045	112,055,038
International Core*	2,372,200	—	2,372,200	—	93,417,239
International
Equity Index	2,208,675	233,704	1,974,971	4,249,483	37,465,196
International Opportunities	1,318,086	152,194	1,165,892	2,357,729	18,840,809
International Stock	8,159,849	8,159,849	—	111,811,735	—
International Value	3,404,665	253,351	3,151,314	4,346,029	56,345,489
Investment
Quality Bond	3,180,337	14,197	3,166,140	165,519	37,202,151
Large Cap Value	344,547	344,547	—	7,042,538	—
Real Estate Equity	3,625,046	181,069	3,443,977	1,858,988	37,849,311
Real Estate Securities	2,818,512	2,818,512	—	76,532,112	—
Real Return Bond	5,676,884	74,098	5,602,786	968,317	74,629,115
Small Cap	1,400,539	42,585	1,357,954	654,632	19,065,668
Small Company	2,554,687	120,302	2,434,385	2,065,167	37,586,907
Small Company Value	837,191	32,693	804,498	813,661	19,010,298
Spectrum Income	14,602,734	47,582	14,555,152	480,643	149,481,407
Strategic Bond	7,510,463	4,349,701	3,160,762	51,717,798	37,202,169
Strategic Income	3,699,702	388	3,699,314	3,885	37,215,095
Total Return	16,703,568	388,308	16,315,260	5,266,408	224,334,826
U.S. Global
Leaders Growth	536,019	536,019	—	7,016,491	—
U.S. Government
Securities	3,071,150	327,635	2,743,515	4,412,627	37,202,058
U.S. High Yield Bond	4,289,540	4,851	4,284,689	62,016	55,915,191
U.S. Multi Sector	7,215,384	1,606	7,213,778	16,587	75,095,428
Value & Restructuring	3,595,802	216,862	3,378,940	2,463,390	37,438,660

*Represents the Portfolio’s investment in John Hancock Funds III International Core Fund

Lifestyle Moderate Portfolio

8. Reclassification of accounts

During the period ended August 31, 2006, the Portfolio reclassified amounts to reflect a decrease in accumulated net realized gain on investments of $3,085,273, an increase in accumulated net investment income of $3,264,883 and a decrease in capital paid-in of $179,610. This represents the amounts necessary to report these balances on a tax basis, excluding certain temporary differences, as of August 31, 2006. Additional adjustments may be needed in subsequent reporting periods.These reclassifications, which have no impact on the net asset value of the Portfolio, are primarily attributable to certain differences in the computation of distributable income and capital gains under federal tax rules versus accounting principles generally accepted in the United States of America and book and tax differences in accounting for non-deductible organizational costs. The calculation of net investment income per share in the Portfolio’s Financial Highlights excludes these adjustments.

Lifestyle Moderate Portfolio

Auditors’ report
Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of
John Hancock Lifestyle Moderate Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of securities owned, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of John Hancock Lifestyle Moderate Portfolio (the “Portfolio”) at August 31, 2006, and the results of its operations, the changes in its net assets, and the financial highlights for the period October 15, 2005 (commencement of operations) through August 31, 2006, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Portfolio’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2006, by correspondence with the transfer agent, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 26, 2006

Tax information
Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolio, if any, paid during its taxable year ended August 31, 2006.

With respect to the ordinary dividends paid by the Portfolio for the fiscal period ended August 31, 2006, 56.66% of the dividends qualify for the corporate dividends-received deduction.

Shareholders will be mailed a 2006 U.S. Treasury Department Form 1099-DIV in January 2007. This will reflect the total of all distributions that are taxable for calendar year 2006.

Trustees and Officers

Independent Trustees

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Bardelis, Born: 1941	2005	209

President and Executive Officer, Island Commuter Corp. (Marine Transport).
Trustee of John Hancock Trust (since 1988) and John Hancock Funds III (since 2005).

Peter S. Burgess, Born: 1942	2005	209

Consultant (financial, accounting and auditing matters (since 1999);
Certified Public Accountant; Partner, Arthur Andersen (prior to 1999).
Director of the following publicly traded companies: PMA Capital Corporation
(since 2004) and Lincoln Educational Services Corporation (since 2004).
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).

Elizabeth G. Cook, Born: 1937	2005	209

Expressive Arts Therapist, Massachusetts General Hospital (September 2001
to present); Expressive Arts Therapist, Dana Farber Cancer Institute
(September 2000 to January 2004); President, The Advertising Club of Greater Boston.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).

William H. Cunningham, Born: 1944	2005	160

Former Chancellor, University of Texas System and former President of the
University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies
(until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting,
Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing)
(since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods
Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation
(insurance) (since 2006), Jefferson-Pilot Corporation (diversified life insurance
company) (until 2006), New Century Equity Holdings (formerly Billing Concepts)
(until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures
(until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems
Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive
Bridge, Inc. (college fundraising) (until 2001); Advisory Director, Q Investments
(until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce
Bank - Austin), LIN Television (since 2002), WilTel Communications (until 2003)
and Hayes Lemmerz International, Inc. (diversified automotive parts supply
company) (since 2003). Trustee of John Hancock Funds (since 2005) and
John Hancock Funds III (since 2005).

Independent Trustees (continued)

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Ladner, Born: 1938	2005	160

Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003);
Senior Vice President and Chief Financial Officer, UGI Corporation (public utility
holding company) (retired 1998); Vice President and Director for AmeriGas, Inc.
(retired 1998); Director of AmeriGas Partners, L.P. (until 1997) (gas distribution);
Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association
(since 2007). Trustee of John Hancock Funds (since 2004) and John Hancock
Funds III (since 2005).

Hassell H. McClellan, Born: 1945	2005	209

Associate Professor, The Wallace E. Carroll School of Management, Boston College.
Trustee of John Hancock Trust (since 2005), John Hancock Funds III (since 2005).

James. M. Oates, Born: 1946	2005	209

Managing Director, Wydown Group (financial consulting firm) (since 1994);
Chairman, Emerson Investment Management, Inc. (since 2000); Chairman,
Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services
company) (since 1997). Director of the following publicly traded companies:
Stifel Financial (since 1996); Investor Financial Services Corporation (since 1995);
and Connecticut River Bancorp, Director (since 1998). Director, Phoenix Mutual
Funds (since 1988; overseeing 20 portfolios). Trustee of John Hancock Trust
(since 2004) and John Hancock Funds III (since 2005).

¹Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an
indefinite term until his/her successor is duly elected and qualified or until he/she dies, retires, resigns, is removed
or becomes disqualified.

Non-Independent Trustee³

Name, age		Number of
*Position(s) held with Portfolio*	Trustee of	John Hancock
Principal occupation(s) and other	Portfolio	funds overseen
directorships during past 5 years	since¹	by Trustee

James R. Boyle, Born: 1959	2005	262

Chairman and Director, John Hancock Advisers, LLC (the “Adviser”),
The Berkeley Financial Group, LLC (“The Berkeley Group”) (holding
company) and John Hancock Funds, LLC (since 2005); President,
John Hancock Annuities; Executive Vice President, John Hancock Life
Insurance Company (since June, 2004); President U.S. Annuities; Senior
Vice President, The Manufacturers Life Insurance Company (U.S.A)
(prior to 2004).

Principal officers who are not Trustees

Name, age
*Position(s) held with Portfolio*	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since

Keith Hartstein², Born: 1956	2005

President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director,
President and Chief Executive Officer, the Adviser and The Berkeley Group,
John Hancock Funds, LLC (since 2005); Director, MFC Global Investment
Management (U.S.), LLC (“MFC Global (U.S.)”) (since 2005); Director,
John Hancock Signature Services, Inc. (since 2005); President and Chief
Executive Officer, John Hancock Investment Management Services, LLC
(since 2006); President and Chief Executive Officer, John Hancock Funds,
John Hancock Funds II, John Hancock Funds III, John Hancock Trust,; Director,
Chairman and President, NM Capital Management, Inc. (since 2005);
Chairman, Investment Company Institute Sales Force Marketing Committee
(since 2003); Director, President and Chief Executive Officer, MFC Global (U.S.)
(2005-2006); Executive Vice President, John Hancock Funds, LLC (until 2005).

John Vrysen², Born: 1955	2005

Chief Financial Officer
Director, Executive Vice President and Chief Financial Officer, the Adviser,
The Berkeley Group and John Hancock Funds, LLC (since 2005); Executive
Vice President and Chief Financial Officer, John Hancock Investment
Management Services, LLC (since 2005), Vice President and Chief Financial
Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature
Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds,
John Hancock Funds II, John Hancock Funds III, John Hancock Trust
(since 2005); Vice President and General Manager, Fixed Annuities,
U.S. Wealth Management (until 2005); Vice President, Operations Manulife
Wood Logan (2000–2004).

Francis V. Knox, Jr.², Born: 1947	2005

Vice President and Chief Compliance Officer, John Hancock Investment
Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005);
Chief Compliance Officer, John Hancock Funds, John Hancock Funds II,
John Hancock Funds III and John Hancock Trust (since 2005); Vice President
and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President
and Ethics & Compliance Officer, Fidelity Investments (until 2001).

Principal officers who are not Trustees (continued)

Name, age
*Position(s) held with Portfolio*	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since

Gordon Shone², Born: 1956	2005

Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John
Hancock Funds III and John Hancock Trust (since 2005); Vice President and
Chief Financial Officer, John Hancock Trust (2003-2005); Senior Vice President,
John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President,
John Hancock Investment Management Services, Inc. and John Hancock
Advisers, LLC (since 2006), The Manufacturers Life Insurance Company (U.S.A.)
(1998 to 2000).

Thomas M. Kinzler², Born: 1955	2006

Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.)
(since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John
Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006);
Vice President and Associate General Counsel for Massachusetts Mutual Life
Insurance Company (1999–2006); Secretary and Chief Legal Counsel for
MML Series Investment Fund (2000–2006); Secretary and Chief Legal Counsel
for MassMutual Institutional Funds (2000–2004); Secretary and Chief Legal
Counsel for MassMutual Select Funds and MassMutual Premier Funds
(2004–2006).

²Affiliated with the investment adviser.

³Non-Independent Trustee: holds positions with the Fund’s investment adviser, underwriter, and/ or certain other affiliates.

For more information

The Portfolio’s proxy voting policies, procedures and records are available without charge, upon request:

By phone	On the Portfolio’s Web site	On the SEC’s Web site
1-800-225-5291	www.jhfunds.com/proxy	www.sec.gov

Investment adviser	Custodian	Legal counsel
John Hancock Investment	State Street Bank & Trust Co.	Kirkpatrick & Lockhart
Management Services, LLC	2 Avenue de Lafayette	Nicholson Graham LLP
601 Congress Street	Boston, MA 02111	1 Lincoln Street
Boston, MA 02210-2805		Boston, MA 02111
	Transfer agent
Principal distributor	John Hancock Signature	Independent registered
John Hancock Funds, LLC	Services, Inc.	public accounting firm
601 Congress Street	1 John Hancock Way,	PricewaterhouseCoopers LLP
Boston, MA 02210-2805	Suite 1000	125 High Street
	Boston, MA 02217-1000	Boston, MA 02110

How to contact us


Internet	www.jhfunds.com

Mail	Regular mail:	Express mail:
	John Hancock	John Hancock
	Signature Services, Inc.	Signature Services, Inc.
	1 John Hancock Way, Suite 1000	Mutual Fund Imaging Operations
	Boston, MA 02217-1000	380 Stuart Street
		Boston, MA 02116

Phone	Customer service representatives	1-800-225-5291
	24-hour automated information	1-800-338-8080
	TDD line	1-800-554-6713

J O H N H A N C O C K F A M I L Y O F F U N D S

EQUITY	INTERNATIONAL
Balanced Fund	Greater China Opportunities Fund
Classic Value Fund	International Classic Value Fund
Classic Value Fund II	International Core Fund
Core Equity Fund	International Fund
Focused Equity Fund	International Growth Fund
Growth Fund
Growth Opportunities Fund	INCOME
Growth Trends Fund	Bond Fund
Intrinsic Value Fund	Government Income Fund
Large Cap Equity Fund	High Yield Fund
Large Cap Select Fund	Investment Grade Bond Fund
Mid Cap Equity Fund	Strategic Income Fund
Mid Cap Growth Fund
Multi Cap Growth Fund	TAX-FREE INCOME
Small Cap Equity Fund	California Tax-Free Income Fund
Small Cap Fund	High Yield Municipal Bond Fund
Small Cap Intrinsic Value Fund	Massachusetts Tax-Free Income Fund
Sovereign Investors Fund	New York Tax-Free Income Fund
U.S. Core Fund	Tax-Free Bond Fund
U.S. Global Leaders Growth Fund
Value Opportunities Fund	MONEY MARKET
	Money Market Fund
ASSET ALLOCATION & LIFESTYLE	U.S. Government Cash Reserve
Allocation Core Portfolio
Allocation Growth + Value Portfolio	CLOSED-END
Lifestyle Aggressive Portfolio	Bank & Thrift Opportunity
Lifestyle Balanced Portfolio	Financial Trends
Lifestyle Conservative Portfolio	Income Securities
Lifestyle Growth Portfolio	Investors Trust
Lifestyle Moderate Portfolio	Patriot Global Dividend
	Patriot Preferred Dividend
SECTOR	Patriot Premium Dividend I
Financial Industries Fund	Patriot Premium Dividend II
Health Sciences Fund	Patriot Select Dividend
Real Estate Fund	Preferred Income
Regional Bank Fund	Preferred Income II
Technology Fund	Preferred Income III
Technology Leaders Fund	Tax-Advantaged Dividend

1-800-225-5291
1-800-554-6713 (TDD)
1-800-338-8080 EASI-Line

www.jhfunds.com

Now available: electronic delivery
www.jhfunds.com/edelivery

This report is for the information of the shareholders of John Hancock Lifestyle Moderate Portfolio.

9700A 8/06
10/06

John Hancock Funds II
President’s Message

August 31, 2006

To our shareholders,

The future has arrived at John Hancock Funds.

The new site also has more educational tools and interactive modules to educate and assist investors with their financial goals, from college savings to retirement planning. A new “I want to...” feature allows investors to check performance, invest more money, update personal information or download prospectuses and forms quickly and easily.

We encourage you to visit our new Website — www.jhfunds.com — and take a tour. It’s easy, fast and fun and allows you to be in control of what you see and do. In short, it’s the wave of the future!

Sincerely,

Keith F. Hartstein
President and Chief Executive Officer

John Hancock Funds II
Annual Report — Table of Contents

Manager’s Commentary and Fund Performance (See below for each Fund’s page #)	4
Understanding Your Fund’s Expenses	61
Statements of Assets and Liabilities	80
Statements of Operations	94
Statements of Changes in Net Assets	108
Financial Highlights	117
Portfolio of Investments (See below for each Fund’s page #)	173
Notes to Financial Statements	427
Report of Independent Registered Public Accounting Firm	464
Federal Income Tax Information	465
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees	466
Appendix A	470
Trustees and Officers Information	473

	Manager’s Commentary &	Portfolio of		Manager’s Commentary &	Portfolio of
Fund	Portfolio Performance	Investments	Fund	Portfolio Performance	Investments

Absolute Return Fund	5	173	Mid Cap Stock Fund	33	309
Active Bond Fund	6	173	Mid Cap Value Fund	34	311
All Cap Core Fund	7	188	Mid Cap Value Equity Fund	35	312
All Cap Growth Fund	8	190	Natural Resources Fund	36	315
All Cap Value Fund	9	192	Quantitative All Cap Fund	37	316
Blue Chip Growth Fund	10	194	Quantitative Mid Cap Fund	38	318
Capital Appreciation Fund	11	196	Quantitative Value Fund	39	320
Core Bond Fund	12	198	Real Estate Equity Fund	40	322
Core Equity Fund	13	206	Real Estate Securities Fund	41	322
Emerging Growth Fund	14	207	Real Return Bond Fund	42	323
Emerging Small Company Fund	15	209	Small Cap Fund	43	325
Equity-Income Fund	16	211	Small Cap Index Fund	44	326
Fundamental Value Fund	17	213	Small Cap Opportunities Fund	45	345
Global Bond Fund	18	215	Small Company Fund	46	348
Global Real Estate Fund	19	220	Small Company Growth Fund	47	352
High Income Fund	20	222	Small Company Value Fund	48	354
High Yield Fund	21	225	Special Value Fund	49	356
International Equity Index Fund	22	234	Spectrum Income Fund	50	359
International Opportunities Fund	23	255	Strategic Bond Fund	51	386
International Small Cap Fund	24	256	Strategic Income Fund	52	396
International Small Company Fund	25	258	Strategic Value Fund	53	400
International Stock Fund	26	281	Total Return Fund	54	401
International Value Fund	27	285	U.S. Global Leaders Growth Fund	55	405
Investment Quality Bond Fund	28	287	U.S. Government Securities Fund	56	406
Large Cap Fund	29	298	U.S. High Yield Bond Fund	57	408
Large Cap Value Fund	30	300	U.S. Multi Sector Fund	58	414
Mid Cap Core Fund	31	302	Value & Restructuring Fund	59	421
Mid Cap Index Fund	32	303	Vista Fund	60	423

John Hancock Funds II
Manager’s Commentary and Fund Performance

Fund Performance

In the following pages we have set forth information regarding the performance of each Fund of the John Hancock Funds II (the “trust”). There are several ways to evaluate a Fund’s historical performance. One can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. With respect to all performance information presented, it is important to understand that past performance does not guarantee future results. Return and principal fluctuate, and shares, when redeemed, may be worth more or less than their original cost. The Funds are still in their first year of operation so a full year of past performance is not available.

Performance Tables

The Performance Tables show two types of total return information: cumulative and average annual total returns. A cumulative total return is an expression of a Fund’s total change in share value in percentage terms over a set period of time — one, five and ten years (or since the Fund’s inception if less than the applicable period). An average annual total return takes the Fund’s cumulative total return for a time period greater than one year and shows what would have happened if the Fund had performed at a constant rate each year. The tables show all cumulative and average annual total returns, net of fees and expenses of the Trust, but do not reflect the insurance (separate account) expenses (including a possible contingent deferred sales charge) that invest in the Fund. If these were included, performance would be lower.

Graph — Change in Value of $10,000 Investment and Comparative Indices

The performance graph for each Fund shows the change in value of a $10,000 investment over the life or ten-year period of each Fund, whichever is shorter. Each Fund’s performance is compared with the performance of one or more broad-based securities indices as a “benchmark.” All performance information includes the reinvestment of dividends and capital gain distributions, as well as the deduction of ongoing management fees and Fund operating expenses. The benchmarks used for comparison are unmanaged and include reinvestment of dividends and capital gains distributions, if any, but do not reflect any fees or expenses. Funds that invest in multiple asset classes are compared with a customized benchmark. This benchmark is comprised of a set percentage allocation from each of the asset classes in which the Fund invests.

Portfolio Manager’s Commentary

Finally, we have provided a commentary by each portfolio manager regarding each Fund’s performance during the period ended August 31, 2006. The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions. Information about a Fund’s holdings, asset allocation or country diversification is historical and is no indication of future fund composition, which will vary. Information provided in this report should not be considered a recommendation to purchase or sell securities. The Funds are not insured by the FDIC, are not a deposit or other obligation of, or guaranteed by banks and are subject to investment risks including loss of principal amount invested. For a more detailed discussion of the risks associated with the Funds, see the Fund prospectus.

“Standard & Poor’s,” “Standard & Poor’s 500,” “S&P 500,” and “S&P MidCap 400 Index” are trademarks of The McGraw-Hill Companies, Inc. “Russell 1000,” “Russell 2000,” “Russell 3000,” and “Russell Midcap” are trademarks of Frank Russell Company. “Wilshire 5000” is a trademark of Wilshire Associates. “Morgan Stanley European Australian Far East Free”, “EAFE” and “MSCI” are trademarks of Morgan Stanley & Co. Incorporated.” “Lehman Brothers” is a registered trademark of Lehman Brothers Inc. “Lipper” is a registered trademark of Reuters S.A. None of the Trusts are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the Trust.

Absolute Return Fund

Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and James Robertson

INVESTMENT OBJECTIVE & POLICIES ^- To seek maximum real return, consistent with preservation of real capital and prudent investment management.

Target Asset Allocation	% of Total

Fixed Income
Multi-Sector Bond	13.00
High Yield Bond	10.00
Treasury Inflation Protected Securities	10.00
Intermediate-Term Bond	10.00
Cash	8.00
Long-Term Bond	3.00
Global Bond	2.00
Short-Term Bond	2.00

Equity
U. S. Large Cap	15.00
Real Estate	9.00
U.S. Small Cap	5.00
Natural Resources	4.00
International	4.00
International Small Cap	3.00
Commodities	2.00

PORTFOLIO MANAGER’S COMMENTARY

Performance ^- Since its inception in June 2006, the Absolute Return Fund returned + 4.20%, outperforming the +3.15% return of the Lehman Brothers U.S. TIPS 1-10 Year Index and the +1.33% return of the CPI +5%.

Environment ^- We started the Fund with the goal of establishing a mix that would achieve the objectives of CPI+ and avoid an initial downturn in performance. To this end, we started with an underweight to the commodities market. The move in commodities had become almost parabolic and we felt it would not be prudent to go to full weight under those conditions. The market has subsequently retraced, providing us the opportunity to move to an equal weight at a more attractive level. In fixed income, the flat yield curve and Fed tightening prompted us to again underweight the asset class. We did, however, feel that the high yield market was extremely attractive. The high running yield and a credit environment that we believe will remain friendly for some time to come points to the best fixed income asset. An almost 70% yield pick-up over treasurie s was compelling. In the equity portion, we were positive, but felt a short term correction could occur. As such, we tilted away from small cap in favor of large cap. The correction materialized to a certain degree, but the portfolio was protected.

Outlook ^- Looking forward, we remain comfortable with our current stance. Interest rates are still not compelling but the argument in favor of high yield remains valid. The Fed appears to have halted its relentless tightening campaign, and the softening housing market is leading to a slightly lower level of GDP growth. Add in a correcting commodity market, and we expect inflation concerns to moderate, and the overall economy to continue to move forward at a reasonable clip. We remain well positioned, although we are looking at selling calls against our equity exposure to earn income and crystallize gains.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

	Cumulative Total Return					Cumulative Total Return
PERFORMANCE TABLE^1,4	Without Maximum Sales Charge (NAV)					With Maximum Sales Charge (POP)

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Absolute Return Class A (began 6/26/06)	—	—	—	4.20%	—	—	—	–1.04%
Absolute Return Class B (began 6/26/06)	—	—	—	4.00%	—	—	—	–1.00%
Absolute Return Class C (began 6/26/06)	—	—	—	4.00%	—	—	—	3.00%
Absolute Return Class 1 (began 6/26/06)	—	—	—	4.20%	—	—	—	4.20%
Lehman Brothers U.S. TIPS 1-10 Year Index^3,5,7	—	—	—	3.15%	—	—	—	3.15%
CPI +5%^3,6,7	—	—	—	1.33%	—	—	—	1.33%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since June 26, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Absolute Return Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Lehman Brothers U.S. TIPS 1-10 Year Index is an unmanaged index which consists of Inflation-Protection securities issued by the U.S. Treasury. The stocks in this index must have at least one year to final maturity, have at least $250 million par amount outstanding and be rated investment-grade (Baa3/BBB– or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch.

6 The CPI + 5% benchmark is created by adding 5% to the annual percentage change in the Consumer Price Index. This index reflects non-seasonably adjusted returns. The Consumer Price Index (CPI) is an unmanaged index representing the rate of inflation in U.S. consumer prices as determined by the U.S. Department of Labor Statistics. There can be no guarantee that the CPI or other indices will reflect the exact level of inflation at any given time. It is not possible to invest directly in an index.

7 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Active Bond Fund

Subadviser: Declaration Management & Research LLC, Sovereign Asset Management LLC
Portfolio Managers: James E. Shallcross and Peter Farley

INVESTMENT OBJECTIVE & POLICIES ^-To seek income and capital appreciation. The Fund normally invests at least 80% of its assets in a diversified mix of debt securities and instruments.

Sector Weighting*	% of Total

Mortgage Securities	38.98
Government	15.27
Financial	7.67
Communications	3.03
Utilities	2.40
Asset Backed Securities	2.32
Energy	1.79
Consumer, Non-cyclical	1.37
Consumer, Cyclical	1.00
Industrial	0.89

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Active Bond Fund returned +3.09%, underperforming the +3.72% return of the LB Aggregate Bond Index.

Environment ^-Interest rates moved higher during the period as the Federal Reserve continued its restrictive monetary policy. The economy shifted back into momentum in the first quarter of 2006, after falling behind because of the impact of the Gulf Coast hurricanes in 2005. Inflation began to elevate, as both wages and surging energy prices raised the prospects for higher interest rates. The yield curve flattened as short-term interest rates increased by nearly a full percentage point, while long-term rates climbed 0.20% . The market was positioned for slower economic growth as indications for the Fed to pause were coming to fruition after its long series of interest rate hikes. The Fund remained short in duration against the benchmark and was positioned for a yield curve-flattening move in the market. Most fixed-income sectors performed well, with high yield and emerging mark ets leading the pack. The fund benefited from having positions in both. Mortgages also contributed to performance as commercial mortgage-backed securities outperformed on the heels of improving sector fundamentals.

Outlook ^-Economic growth is expected to slow as higher interest rates, a softening residential real estate market, and elevated energy prices stall consumer consumption. Inflation remains a concern for the Fed, but is expected to taper off with evidence of economic weakness. Historically, the Fed has been unable to engineer a soft landing for the economy. This time, the Fed is better positioned. However, the fallout from a weaker housing market has yet to filter through the economy. Interest rates will remain range-bound in the high 4% area as the market wrestles with inflation and slower growth. Fixed-income sectors are approaching rich levels and caution is warranted, especially in credit, as the economy transitions.

Sovereign Asset Management LLC

Environment ^-Early during the past year, a combination of longer and shorter-dated bonds positioned the Fund for a flatter yield curve. Portfolio duration was generally kept below the benchmark. We structured the Fund this way believing economic growth would remain above 3% and inflation pressures would mount, causing interest rates to increase. The Federal Reserve continued to tighten monetary policy, taking the federal funds rate from 3.50% to 5.25% before pausing in August. Interest rates for the U.S. Treasury market increased and the curve flattened. More recently, we shifted the maturity position to benefit from an eventual steepening. The portfolio’s largest sector weightings were in corporate bonds and mortgage-backed securities. We took a cautious approach among the more cyclical sectors within corporate bonds. Corporate spreads remained near historically tight le vels, and with the Fed removing liquidity from the financial system, we believed spreads would widen. This scenario did not play out, as high yield corporate bonds continued to outperform other sectors. In the mortgage market, we remained defensive as well, holding adjustable-rate mortgages in place of many fixed-rate 30-year mortgages. This position worked out well, as changes in prepayment rates led 30-year mortgages to underperform adjustable-rate mortgages.

Outlook ^-Recent indicators show the housing market weakening much faster than predicted, with many areas of the country experiencing decreasing home prices. Combined with higher energy prices and interest rates over the past year, we believe that this will have a moderating effect for the U.S. and global economies. Inflation pressures should begin to ease as growth slows. Most recently, commodity prices have started to decline. We expect the federal funds rate to ease in 2007. While the economy will likely slow and interest rates fall, we do not expect a significant widening in corporate bond spreads, as we doubt the U.S. economy will enter a recession. Likewise, there should be little negative effect on mortgage-backed security spreads.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Active Bond Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.68%
Active Bond Class NAV (began 10/27/05)	—	—	—	—	—	—	—	3.09%
Lehman Brothers Aggregate Bond Index (10/15/05)^3,4,5	—	—	—	—	—	—	—	3.37%
Lehman Brothers Aggregate Bond Index (10/27/05)^3,4,5	—	—	—	—	—	—	—	3.72%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadvisers have managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

All Cap Core Fund

Subadviser: Deutsche Asset Management
Portfolio Managers: Julie Abbett, Janet Campagna and Robert Wang

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term growth of capital by investing in stocks within all assets classes (small-, mid- and large-cap) primarily those within the Russell 3000 Index.

Sector Weighting*	% of Total

Consumer, Non-cyclical	18.94
Financial	15.69
Technology	9.85
Consumer, Cyclical	9.35
Communications	8.51
Industrial	7.99
Energy	7.96
Basic Materials	3.65
Utilities	2.92

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in April 2005, the All Cap Core Fund returned –0.80%, underper-forming the –0.75% return of the Russell 3000 Total Index.

Environment ^-The US stock market has remained choppy on worries about economic growth, energy prices and rising interest rates. In August 2006, markets responded positively to news on all three factors. Economic releases such as slightly higher jobless claims, lower new home and auto sales, as well as lower consumer confidence, supported slowing growth. In response, on August 8, the Federal Reserve paused at a 5.25% Federal Funds level; this is a change from increases over the last 18 months. The Federal Reserve noted the slowing economy outweighed inflation concerns but it left a door open for more hikes in the future.

The All Cap Core strategy outperformed its benchmark during the period. Stocks within the energy, capital goods, and retailing industry groups contributed most to relative performance. Stocks within the energy industry group returned a positive 3.86% while those in the benchmark 0.03% . The largest detractor from relative performance was the food & staples retailing industry group. Stocks within the Index in this industry group returned 4.13% versus a return of -4.58% in the portfolio.

Outlook ^-Over the next several quarters, US economic data should continue to show lower levels of growth than 1st quarter 2006. The Federal Reserve paused on their cycle of raising interest rates, with the economy forecast to slow to a pace at or slightly below trend. We believe this should encourage a gradual transition back to high quality stocks, and therefore our disciplined approach to portfolio management will continue to be rewarded. As the profit cycle decelerates and margin growth slows through competitive pressures, we believe owning companies with high quality earnings and strong cash flow will leave the portfolio well positioned for continued success.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

All Cap Core Class NAV (began 4/28/06)	—	—	—	—	—	—	—	–0.80%
Russell 3000 Total Index^3,4,5	—	—	—	—	—	—	—	–0.75%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 3000 Total Index is an unmanaged index of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

All Cap Growth Fund

Subadviser: AIM Capital Management, Inc.
Portfolio Managers: Lanny H. Sachnowitz, Kirk L. Anderson, Robert J. Lloyd and James G. Birdsall

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term capital appreciation by investing principally in common stocks of companies that are likely to benefit from new or innovative products, services or processes, as well as those that have experienced above-average, long-term growth in earnings and have excellent prospects for future growth.

Sector Weighting*	% of Total

Consumer, Non-cyclical	19.06
Industrial	13.96
Technology	13.95
Consumer, Cyclical	12.85
Communications	11.37
Financial	10.48
Energy	5.46
Basic Materials	3.54

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the All Cap Growth Fund returned +6.11%, underperforming the +6.61% return of the Russell 3000 Growth Index.

Environment ^-Despite widespread concern about the impact of rising short-term interest rates, high energy prices, a housing bubble and the long-term economic effects of the Gulf Coast hurricanes of 2005, the equity markets generated positive returns for the fiscal year. Under new chairman Ben Bernanke, the Federal Reserve continued raising the federal funds rate, to 5.25% . Positive performance in the Russell 3000 Growth Index was broad-based, with the highest returns in the Utilities, Telecommunications and Materials sectors.

The Fund outperformed the benchmark by a wide margin in Industrials, Materials and Financials. In Industrials, the Fund had strong stock selection across several industries that benefited from global economic expansion. In Materials, we gained from stock selection and an overweight, as the sector was a top Index performer. Metals and mining stocks made key contributions, as commodity prices remained high generally, and the fund benefited from an overweight position. In Financials, our performance was driven by stock selection in insurance and commercial bank holdings and overweight positions in capital market and diversified financial services holdings.

The Fund underperformed by a wide margin versus its benchmark in the Health Care, Consumer Staples and Energy sectors. Stock selection and an overweight in the health care providers and services industry detracted from performance. In the Consumer Staples sector, stock selection and an underweight in beverages and in food and staples retailing detracted from performance. Underperformance in Energy was driven largely by an overweight position, as many Energy stocks began to fade late in the period.

Outlook ^-We believe growth stocks are poised to outperform. Many growth stocks continue to trade at reasonable valuations relative to value stocks, as well as to expected growth rates, and the current economic environment is favorable for the stock prices of companies that can deliver above-average earnings growth. This environment has created an opportunity to buy companies with superior growth prospects at unusually modest prices.

The portfolio is positioned to benefit from global economic growth, although we maintain significant positions in relatively defensive growth stocks as the economic cycle shows signs of maturing.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-Year	5-Year	10-year	inception	1-year	5-Year	10-year	inception²

All Cap Growth Class 1 (began 10/15/05)	—	—	—	—	—	—	—	6.05%
All Cap Growth Class NAV (began 10/15/05)	—	—	—	—	—	—	—	6.11%
Russell 3000 Growth Index^3,4,5	—	—	—	—	—	—	—	6.61%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 3000 Growth Index is an unmnaged index that measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

All Cap Value Fund

Subadviser: Lord, Abbett & Co. LLC
Portfolio Managers: David G. Builder, Robert P. Fetch, Daniel H. Frascarelli, Howard E. Hansen, Gerard E. Heffernan Jr. and Robert G. Morris

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve capital appreciation, the Fund will invest primarily in equity securities of U.S. and multinational companies that Lord, Abbett & Co. LLC (Lord Abbett) believes are undervalued in all capitalization ranges. Under normal circumstances, the Fund will invest at least 50% of its net assets in equity securities of large, seasoned companies with market capitalizations of at least $5 billion at the time of purchase.

Sector Weighting*	% of Total

Industrial	23.20
Consumer, Non-cyclical	17.56
Financial	10.48
Energy	9.62
Communications	6.95
Basic Materials	5.89
Consumer, Cyclical	5.50
Utilities	4.47
Technology	3.36

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the All Cap Value Fund returned +14.69%, underperforming the +17.54% return of the Russell 3000 Value Index.

Environment ^-After outperforming the Index for the first half of the year, the portfolio underperformed significantly in July. This coincided with the market’s reaction to the perceived slowing U.S. economy, which hurt our cyclical stocks. The largest detractor from relative performance was Technology stock selection. The relative overweight within this sector also hurt performance because Technology was the portfolio’s second worst performing sector. Within Financial Services, stock selection and our relative underweight also detracted from performance. The Fund either did not own or held a relative underweight in several very strong performers in this sector. Stock selection within the Health Care sector was also a detractor, as product recalls affected one of our holdings.

A relative sector overweight within the Materials and Processing sector was the largest contributor to the portfolio’s performance versus the Russell 3000 Value Index. Within this sector, which posted the highest returns in the Index, the Fund’s average weighting was almost three times higher than the Index. Stock selection in Materials and Processing also was positive. The Other Energy sector provided our highest returns, led by strong stock selection. Lastly, the Fund’s relative overweight within the Consumer Staples sector benefited performance as cyclical stocks performed well.

Outlook ^-We are focused on finding companies that meet certain valuation hurdles and that have identifiable catalysts to drive their stock prices higher. We have found many such companies within the Materials and Processing and Technology sectors, which led the portfolio to a relative overweight in both of these sectors, as of the end of August. In contrast, we continue to be concerned about earnings and valuations within the Financial Services sector, which is by far the portfolio’s largest underweight. We will continue to build the portfolio from the bottom up and respond to opportunities that exist in every market environment.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

All Cap Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	14.64%
All Cap Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	14.69%
Russell 3000 Value Index^3,4,5	—	—	—	—	—	—	—	17.54%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 3000 Value Index is an unmanaged index that measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or Russell 2000 Value indexes.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Blue Chip Growth Fund

Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Larry J. Puglia

INVESTMENT OBJECTIVE & POLICIES ^-To seek to provide long-term growth of capital by investing at least 80% of the Fund’s total assets in the common stocks of large and medium sized blue chip growth companies as defined by T. Rowe Price Associates, Inc. These are firms that the managers believe are well established in their industries and have the potential for above-average earnings growth. Current income is a secondary objective.

Sector Weighting*	% of Total

Consumer, Non-cyclical	22.48
Financial	20.14
Technology	13.34
Communications	12.61
Industrial	9.69
Consumer, Cyclical	9.11
Energy	6.98
Basic Materials	1.19

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Blue Chip Growth Fund returned +7.90%, underperforming the +11.77% return of the S&P 500 Index.

Environment ^-U.S. stocks rose over the past 10-plus-month period. Within the S&P 500, the materials and telecommunications services sectors posted the strongest returns: the IT and consumer discretionary sectors were weakest but generated positive returns for the period. Investors seemed pleased that the Federal Reserve refrained from raising the Fed funds target rate on August 8, and stocks rallied at the end of the period.

A significant overweight and stock selection in the information technology sector was the fund’s largest relative performance detractor. Although Google, Nokia, and Intuit were strong gainers, an overweight in Dell and semiconductor holdings Maxim Integrated Products and Marvell Technology Group detracted from the sector’s results. Currently, our largest overweights are in the semiconductors and semiconductor equipment and Internet software and services industries because we believe in the multi-year growth potential of the companies we own.

Stock selection in the health care sector was the next-largest detractor. Nevertheless, we believe in the long-term prospects for our providers and services holdings given their exceptional cash flow generation ability. The financials sector also detracted due to stock selection — although the sector was the strongest absolute contributor. We’ve maintained an overweight in capital markets because of the positive economic backdrop, healthy investment banking activity, and the ability to leverage fee-for-service business models that should generate strong free cash flow and earnings growth.

Despite our underweight allocation, the energy sector was the best relative performer thanks to oil equipment and services companies Baker Hughes, Smith International, and Schlumberger. We like the prospects for our oil services holdings as they continue to benefit from increased spending by energy producers on infrastructure, equipment, technology, and specialized services.

Outlook ^-We continue to anticipate solid GDP growth, modest increases in inflation and interest rates, and stable unemployment and consumer confidence for the remainder of 2006. In addition, we expect good corporate profits that could lead to increased business spending. Valuations are reasonable, particularly for large-cap growth companies generating consistent earnings and cash-flow growth. However, with a moderation in average earnings growth rates, stock selection should become increasingly important. We remain optimistic on the prospects for equities and remain vigilant in finding companies with durable long-term growth characteristics, regardless of the economic environment.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Blue Chip Growth Class 1 (began 10/15/05)	—	—	—	—	—	—	—	7.88%
Blue Chip Growth Class NAV (began 10/15/05)	—	—	—	—	—	—	—	7.90%
Standard & Poors 500 Index^3,5,6	—	—	—	—	—	—	—	11.77%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Blue Chip Growth Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Standard & Poors 500 Index is an unmanaged index that includes 500 widely traded common stocks.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Capital Appreciation Fund

Subadviser: Jennison Associates, LLC
Portfolio Managers: Michael Del Balso, Kathleen McCarragher and Spiros Seagalas

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term growth of capital by investing at least 65% of the Fund’s total assets in equity-related securities of companies that exceed $1 billion in market capitalization and that Jennison Associates believes have above-average growth prospects.

Sector Weighting*	% of Total

Consumer, Non-cyclical	30.80
Communications	17.92
Financial	12.52
Technology	12.28
Consumer, Cyclical	9.71
Industrial	6.96
Energy	4.08

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Capital Appreciation Fund returned +2.72%, underperforming the +6.16% return of the Russell 1000 Growth Index.

Environment ^-The September quarter of 2005 was marked by a series of disruptive events, most notably Hurricanes Katrina and Rita and the London train bombings. The economic fallout from the Gulf coast storms produced real and lingering economic effects in fourth-quarter 2005, reflected most immediately in sharply higher refined products and natural gas prices. The economy rebounded strongly during first-quarter 2006, posting solid and balanced growth across almost all fronts. Higher commodity prices and inflation concerns combined with rising interest rates to produce a difficult second-quarter 2006 for many asset classes and markets. Despite these headwinds, the US economy maintained positive momentum, although growth cooled from the first quarter’s 5.6% rate to 2.5% . From May through the end of the Fund’s fiscal year in August, stocks had a difficult time as perceptions of where growth, inflation, and interest rates were headed changed rapidly. A struggle ensued between those with their hopes pinned on sustained growth worrying about the likelihood of higher interest rates and those who felt that signs of economic moderation were already foreshadowing a slowdown and that recession was now the greater risk.

The Fund underperformed the Russell 1000^®Growth Index in large part because of adverse stock selection in the Information Technology sector. Stock selection detracted materially from relative performance in Consumer Discretionary as well. In Industrials, an underweight position hurt return. Stock selection in the Financials sector was a chief contributor to positive relative performance, as was an overweight allocation to Health Care.

Outlook ^-Economic activity is likely to moderate during the remainder of 2006, as the consumer sector confronts the effects of higher interest rates and energy prices. Weaker year-over-year sales gains are probable, but normal seasonality is likely. The tone in the corporate sector is more favorable because of sustained positive sales growth and the above-average profitability associated with the current cycle. We believe the profit outlook for companies in the Fund remains strong. Despite inflation fears and uncertainty of future monetary policy, we believe the current interest rate cycle is peaking. In our view, the economy remains durable, with growth outside the US more supportive than at any point in the current decade.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Capital Appreciation Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.61%
Capital Appreciation Class NAV (began 10/15/05)	—	—	—	—	—	—	—	2.72%
Russell 1000 Growth Index^3,4,5	—	—	—	—	—	—	—	6.16%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 1000 Growth Index is an unmanaged index composed of the Russell 1000 securities that have a greater-than-average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Core Bond Fund

Subadviser: Wells Capital Management, Inc.
Portfolio Managers: William Stevens, Marie Chandoha and Thomas O'Connor

INVESTMENT OBJECTIVE & POLICIES ^-Seeks total return consisting of income and capital appreciation by investing in a broad range of investment-grade debt securities, including US Government obligations, corporate bonds, mortgage- and other asset-backed securities and money market instruments.

Sector Weighting*	% of Total

Mortgage Securities	55.80
Government	15.70
Asset Backed Securities	8.45
Financial	8.20
Communications	3.34
Energy	1.65
Utilities	1.64
Consumer, Non-cyclical	1.23
Consumer, Cyclical	0.72
Industrial	0.53

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Core Bond Fund returned +2.90%, underperforming the +3.37% return of the LB Aggregate Bond Index.

Environment ^-Due to the effects of the twin hurricanes and spiking energy prices, it became evident to investors late last year that the economy was slowing. Longer-term Treasury yields moved downward until mid-January of 2006. The slowdown proved temporary, as the economy rebounded during the first quarter of 2006, sending Treasury yields upward, peaking in June. The Federal Reserve continued its tightening regime, lifting the federal funds rate from 4.00% in November 2005 to the current rate of 5.25% . Investment grade corporate bond spreads remained stable over the period and at historically tight levels, as the credit fundamentals remained positive. Mortgage spreads also remained fairly stable during the period, as volatility has been historically low.

Outlook ^-The Federal Reserve held rates steady at its August meeting and the market’s reaction seems to imply “the Fed is done.” The market was probably too jubilant and Treasury rates, which have dropped by close to 0.5% since early July, are biased to move up modestly from here. The rapid deceleration of all aspects of the housing sector continues to shadow the outlook for economic growth as weaker than expected housing data dominated August’s economic releases. But inflation is also edging up. The Fed could face the unsavory prospect of slower growth and higher prices. We think the Fed will leave rates unchanged for now, giving more time for economic data to reveal how much the economy is slowing and whether inflation is really an issue.

Our largest sector overweight continues to be in Commercial Mortgage-Backed Securities (CMBS). We particularly like the older CMBS issues with better underwriting. In Mortgage-Backed Securities, we have moved to more defensive positioning, adding to our holdings of 15-year mortgages. In August, we pared back our corporate positioning to neutral relative to the Lehman Brothers Aggregate Bond Index, as many of our holdings have outperformed. Given the very heavy new issue calendar in September, we believe we can add corporate bonds at more attractive levels. In all sectors, we continue to focus our efforts on finding good relative value opportunities through our bottom-up research.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Core Bond Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.86%
Core Bond Class NAV (began 10/15/05)	—	—	—	—	—	—	—	2.90%
Lehman Brothers Aggregate Bond Index^3,4,5	—	—	—	—	—	—	—	3.37%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Core Equity Fund

Subadviser: Legg Mason Funds Management, Inc.
Portfolio Manager: Mary Chris Gay and Bill Miller

INVESTMENT OBJECTIVE & POLICIES ^-To seek long term capital growth by investing, under normal market conditions, primarily in large capitalization equity securities that, in the subadviser’s opinion, offer the potential for capital growth.

Sector Weighting*	% of Total

Communications	36.21
Financial	14.80
Consumer, Non-cyclical	12.11
Consumer, Cyclical	10.52
Industrial	10.13
Technology	8.45
Utilities	5.32

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Core Equity Fund returned +3.63%, underperforming the +11.77% return of the S&P 500 Index.

Environment ^-The ten-month period began strongly for the U.S. equity market, which was buoyed by the moderation in oil prices that followed hurricanes Katrina and Rita and economic reports indicating robust productivity. Despite lingering concerns that new Fed Chairman Ben Bernanke would raise interest rates too far in an effort to establish his inflation-fighting credentials, the S&P 500’s total return of 4.21% in the first quarter of 2006 marked its best first quarter showing since 1999. Small-cap stocks continued their leadership as the year began, but large caps began to show relative strength in the second quarter amid simultaneous tightening efforts from the U.S. Federal Reserve, Bank of Japan, and European Central Bank. After 17 consecutive hikes, the Fed left short-term rates unchanged at its August meeting, setting the stag e for the equity markets as the historically weak fall season gets underway.

From a sector perspective, consolidation in Telecommunication, particularly the $67 billion mega-merger between AT&T and BellSouth, led the group to the strongest performance in the S&P 500. Due to its substantial overweight, it was also the top-contributing sector in the John Hancock Core Equity Trust portfolio. Energy displayed continued strength, gaining 17.4% as oil prices rose amid geopolitical tensions, a move that hindered the relative performance of the portfolio due to our absence from the sector. Versus the S&P 500 benchmark, the primary cause for portfolio underperformance was a significantly overweight position in the index-lagging Consumer Discretionary sector, which was exacerbated by the poor returns of our individual securities, especially Internet-related businesses and home-builders. In addition, a pullback from our managed care holdings detracted from our performance in Health Care.

Outlook ^-We believe the economy remains healthy overall, recently softening oil prices should help consumers, and the Fed will likely keep rates at their current level for the time being. While the Fed’s actions will impact equity results, we continue to see ample reason to be positive on the prospects for equities, particularly U.S. mega caps, whether the Fed stands pat in September or not. Corporate balance sheets are flush with cash, share buybacks are on the rise, earnings growth is solid, M&A and private equity activity is robust, and, most importantly, valuations for large-cap stocks are among the best they have been in many years. In short, we expect U.S. equity investors will be rewarded for staying the course in coming months.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Core Equity Class 1 (began 10/15/05)	—	—	—	—	—	—	—	3.56%
Core Equity Class NAV (began 10/15/05)	—	—	—	—	—	—	—	3.63%
Standard & Poors 500 Index^3,4,5	—	—	—	—	—	—	—	11.77%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Standard & Poors 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Emerging Growth Fund

Subadviser: Sovereign Asset Management LLC
Portfolio Managers: Alan E. Norton and Henry E. Mehlman

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks long-term capital appreciation by investing at least 80% of the Fund’s total assets in equity securities of small capitalization companies.

Sector Weighting*	% of Total

Consumer, Non-cyclical	23.19
Technology	14.62
Industrial	11.79
Consumer, Cyclical	9.77
Financial	8.21
Communications	6.39
Energy	5.96
Funds	1.48
Basic Materials	0.37

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Emerging Growth Fund returned +12.17%, outperforming the +11.27% return of the Russell 2000 Growth Index.

Environment ^-The equity markets have been tumultuous over the past four months. Most indices reached their yearly highs in mid-May, only to give back double-digits gains and set yearly lows two months later. Most concerns centered on the extent to which the U.S. Federal Reserve would ultimately raise interest rates, and fears of Mid East unrest and global terrorism. A vigilant Fed has monitored a strong economy and rising commodity prices. The federal funds rate was raised to 5.25% in June, 2.25% higher than June 2005. The equity markets were not able to support valuations in the face of higher interest rates and rising commodity prices.

The concern shifted to the Fed possibly tightening too much; the market took on a decidedly defensive tone. The Energy and Materials sectors were strong performers before May’s high point, and then defensive strategies began to outperform. Value stocks continued to outperform growth stocks. The portfolio was positioned all year for a healthy economy. It will benefit if growth begins outperforming value and defensive strategies, which we expect.

Outlook ^-We believe our focus on high-quality growth names should position the Fund well for an environment where economic growth may decelerate modestly, but will not spiral into a recession. While it appears at the moment that the current Fed tightening cycle is at or near the end, we are encouraged that corporate profits remain robust, margins are healthy and unemployment is very low.

We continue to believe business investment will drive economic growth and we are encouraged by the opportunities we see in the Health Care sector, where favorable long-term demographic tailwinds exist, and new technologies and products continue to emerge that should be able to grow in any environment. Regarding consumer-dependant stocks, we feel that a lot of pessimism is reflected in current stock prices and opportunities exist to invest in high-quality consumer brands that are attractively valued. In general, the Fund is positioned to benefit from a market that ascribes a higher value for quality growth stocks with visible earnings prospects.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Emerging Growth Class 1 (began 10/15/05)	—	—	—	—	—	—	—	12.17%
Emerging Growth Class NAV (began 10/15/05)	—	—	—	—	—	—	—	12.17%
Russell 2000 Growth Index^3,4,5	—	—	—	—	—	—	—	11.27%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Emerging Small Company Fund

Subadviser: RCM Capital Management, LLC
Portfolio Managers: Thomas J. Ross

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term capital appreciation by primarily investing in the common stocks of small capitalization companies.

Sector Weighting*	% of Total

Consumer, Non-cyclical	22.93
Financial	17.30
Consumer, Cyclical	14.97
Industrial	13.32
Technology	10.28
Energy	6.25
Communications	5.77
Funds	3.35
Basic Materials	1.09

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in June 2006, the Emerging Small Company Fund returned –1.46%, underperforming the +2.58% return of the Russell 2000 Growth Index.

Environment ^-After reaching an all-time high on May 5, the Russell 2000 Index has corrected substantially. Strong gains in equities over the first four months of 2006 began to erode after the U.S. Federal Reserve’s early May policy meeting. The increasingly hawkish tone concerned investors that the Fed may raise rates too far, given a tendency to overshoot in prior cycles.

From May through August, the Russell 2000 Index lost 5.4%, while the Russell 2000 Growth Index fell by 9.2% . While all sectors in the growth index posted negative returns during this period, Consumer Staples, Financials and Energy held up the best, outperforming on a relative basis.

The decision-making process is always focused on individual stock selection over an intermediate time horizon. During the period under review, the portfolio was positioned to gain advantage in a market environment characterized by increasing volatility, profit taking, and potentially a corrective phase. For this reason, we underweighted the Technology sector and focused on companies that were positioned to benefit from increased spending in the Telecommunications and Financial sectors.

Within Health Care, we focused on companies whose businesses were biased towards services and existing medical technology products, while we underweighted biotechnology. We overweighted very high quality companies in transportations, which, despite having proven to be excellent long-term investments, corrected sharply as the market declined.

Outlook ^-Because we believe the Fed is at or near the end of its tightening cycle, we recently increased positions in selected Financial companies with solid growth attributes that we believe will benefit from an improving interest rate environment. We anticipate adding to selected Technology holdings while remaining cognizant of valuations. We are particularly focused on the possible peak in earnings in various Industrial names and we will take actions appropriately.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Emerging Small Company Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.84%
Emerging Small Company Class NAV (began 6/26/06)	—	—	—	—	—	—	—	-1.46%
Russell 2000 Growth Index (10/15/05)^3,5,6	—	—	—	—	—	—	—	11.27%
Russell 2000 Growth Index (6/26/06)^3,5,6	—	—	—	—	—	—	—	2.58%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Emerging Small Company Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Equity-Income Fund

Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Brian C. Rogers

INVESTMENT OBJECTIVE & POLICIES ^-To seek to provide substantial dividend income and long-term capital appreciation by investing primarily in common stocks of well-established companies. The Fund will normally invest in companies that are paying above-average dividends. T. Rowe Price Associates, Inc. (T. Rowe Price) seeks to select stocks that appear to be undervalued or temporarily out of favor, but that have good prospects for capital appreciation and dividend growth.

Sector Weighting*	% of Total

Consumer, Non-cyclical	18.48
Financial	16.54
Communications	15.31
Industrial	11.72
Energy	9.85
Consumer, Cyclical	5.46
Basic Materials	4.32
Technology	4.28
Utilities	4.12
Mortgage Securities	0.44

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Equity-Income Fund returned +13.54%, underperforming the +17.45% return of the Russell 1000 Value Index.

Environment ^-All sectors of the Russell 1000 Value Index registered positive results during the period, led by telecommunication services, materials, and consumer staples. Lagging sectors included consumer discretionary, industrials and business services, and information technology.

The consumer discretionary sector was the largest detractor from relative performance due to a combination of stock selection-especially in specialty retail and media-and our large overweight in this segment. Stock selection in the consumer staples sector also weighed on relative performance, driven by weakness in our food and staples retailing and household products holdings. Information technology detracted from relative performance on stock selection in the computers and peripherals and semiconductor and semiconductor equipment industries. Technology stocks have tumbled recently, and we took advantage of the opportunity to invest in quality companies at attractive valuations.

Industrial and business services was the largest positive contributor to relative performance, aided by good stock selection, especially in commercial services and supplies and in aerospace and defense companies. Both industries benefited from a robust economy and strong business spending. The Fund’s underweight in the energy and utilities sectors also aided performance versus the benchmark. As interest rates rise, dividends of utilities stocks tend to look less attractive.

Outlook ^-It remains to be seen whether the Fed’s recent decision not to raise short-term rates means that interest rates have finally peaked. We don’t expect a particularly strong stock market environment until the Fed makes it clear to investors that further monetary tightening is unnecessary.

We have gradually increased the Fund’s holdings in several high-quality growth companies, since our analysis suggests that’s where the true value is at the moment. Companies falling into this category often provide good dividend yields, a history of dividend increases, and opportunistic stock repurchases. In the past, many stocks of this type have performed relatively well during periods of decelerating economic growth. While it is virtually impossible to predict short-term movements in the market, let alone long-term performance, we remain generally constructive about the environment for stocks during the next few years. We will continue to employ the discipline that has served investors well over the years, seeking out reasonably valued stocks of high-quality companies while monitoring general economic conditions.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Equity Income Class 1 (began 10/15/05)	—	—	—	—	—	—	—	13.52%
Equity Income Class NAV (began 10/15/05)	—	—	—	—	—	—	—	13.54%
Russell 1000 Value Index^3,5,6	—	—	—	—	—	—	—	17.45%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Equity-Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Fundamental Value Fund

Subadviser: Davis Selected Advisers, L.P.
Portfolio Managers: Christopher C. Davis and Kenneth C. Feinberg

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve growth of capital by investing primarily in common stocks of U.S. companies with market capitalizations of at least $10 billion.

Sector Weighting*	% of Total

Financial	35.53
Consumer, Non-cyclical	15.73
Energy	11.24
Communications	9.55
Consumer, Cyclical	8.47
Industrial	7.75
Technology	3.39
Diversified	0.50
Basic Materials	0.40

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Fundamental Value Fund returned +10.87%, underperforming the +11.77% return of the S&P 500 Index.

Environment ^-During the period ended August 31, 2006, large cap stocks, as measured by the Standard & Poor’s 500® Index, increased by 11.4% . U.S. economic activity, as measured by the gross domestic product (“GDP”), increased between 1.8% and 5.6% over the last three calendar quarters ended June 30, 2006. Interest rates, as measured by the 10-year Treasury bond, began October 2005 at about 4.2%, slowly increased, and ended August 2006 at about 4.9% .

The Fund has made substantial investments in insurance, diversified financial, and consumer staple companies. The Fund’s diversified financial holdings out-performed the Index, while holdings in the other two sectors trailed the Index, but made positive contributions to performance. Telecommunication service companies turned in the strongest performance of any sector in the Index. Our holdings in this sector did not perform as well, reducing the Fund’s overall performance. We worked to carefully invest its cash after beginning operations in October. These cash balances reduced the Fund’s relative returns as the Index turned in a strong performance over the period.

Outlook ^-While we believe that a ten and a half month period is too short to provide meaningful insight into a Fund’s future long-term performance, we are building a portfolio which is quite different in composition from the Standard & Poor’s 500® Index. Our investment strategy is to perform extensive research to buy durable companies at a discount to their intrinsic values and hold them for the long term.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Fundamental Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	10.83%
Fundamental Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	10.87%
Standard & Poors 500 Index^3,4,5	—	—	—	—	—	—	—	11.77%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Standard & Poors 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Global Bond Fund

Subadviser: Pacific Investment Management Company
Portfolio Managers: Sudi Mariappa

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve maximum total return, consistent with preservation of capital and prudent investment management, by investing primarily in U.S. and non-U.S. fixed income securities. The Fund will normally hold these securities on a currency unhedged basis.

Sector Weighting*	% of Total

Government	37.93
Mortgage Securities	21.18
Asset Backed Securities	14.81
Financial	6.54
Utilities	2.85
Communications	0.84
Industrial	0.23
Consumer, Cyclical	0.23
Energy	0.23
Technology	0.20

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Global Bond Fund returned +2.48%, outperforming the +2.45% return of the JPM Global Gov Bond Unhedged USD Index.

Environment ^-Global growth was firm through much of 2006, boosting inflation and prompting global central bank tightening. In the U.S., the Federal Reserve acknowledged that economic growth had moderated as shown by declining home sales, mortgage applications, and consumer confidence. Euroland showed strength on surging exports and a pickup in domestic consumption. Likewise, the United Kingdom defied expectations of a slowdown, as housing activity remained robust. Japan posted strong economic data, and the Bank of Japan joined the Fed and the European Central Bank (ECB) in tightening global liquidity.

Developed global bonds have been challenged in the face of monetary tightening by central banks.

Above-index duration in the U.S. hurt performance, as interest rates rose across the curve. Short-to-intermediate yield curve exposure was costly, as the yield curve flattened as the Fed continued to raise the Fed Funds rate. An underweight to Euroland duration helped relative returns, as Euroland yields increased amid stronger-than-expected economic data and ECB rate hikes. Short-term maturity exposure in the U.K. held back performance, as longer maturities outperformed, and the Bank of England surprised the market with an August rate increase. An underweight to Japanese bonds was positive, as yields rose on fears that the central bank would move away from zero interest rates, which it did in July. Emerging markets were positive, reflecting attractive yields and improving credit fundamentals. A long Euro position boosted relative returns, slightly offset by exposure to a depreciating Yen. In the U.S., an emphasis on mortgage-backed securities helped, as this sector outperformed like-duration Treasuries due to higher yields, low implied volatility, and a decreased supply.

Outlook ^-Our outlook for global growth remains favorable, although key risks could derail the pace of growth. While the U.S. economy has been resilient, the severity of a consumer slowdown remains a wildcard. Japan’s economic prospects remain bright with improvements in corporate investment and hiring, along with household consumption. In Euroland, the corporate sector is leading the recovery on strong exports and a pickup in capital spending, but consumers have yet to fully participate. Meanwhile, Chinese and Asian growth has been robust and should remain strong as exports, investment and spending on infrastructure boost incomes and domestic demand.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Global Bond Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.46%
Global Bond Class NAV (began 10/15/05)	—	—	—	—	—	—	—	2.48%
JP Morgan Global Government Bond Unhedged Index^3,4,5	—	—	—	—	—	—	—	2.45%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 JP Morgan Global Government Bond Unhedged Index is an unmanaged index which measures the performance of leading government bond markets based on total return in U.S. currency. By including only traded issues, the Index provides a realistic measure of market performance for international investors. It is calculated by J.P. Morgan, and reflects reinvestment of all applicable dividends, capital gains and interest.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Global Real Estate Fund

Subadviser: Deutsche Asset Management
Portfolio Managers: John F. Robertson, John W. Vojticek, John Hammond, Danny Ekins and William Leung

INVESTMENT OBJECTIVE & POLICIES ^-To achieve a combination of long-term capital appreciation and current income. At least 80% of assets will be invested in equity securities of U.S. REITs, foreign entities with tax-transparent structures similar to REITs and U.S. and foreign real estate operating companies. The Fund will be invested in issuers located in at least three different countries, including the United States.

Sector Weighting*	% of Total

Financial	81.91
Consumer, Non-cyclical	3.72
Consumer, Cyclical	1.68
Industrial	0.60

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in April 2006, the Global Real Estate Fund returned +3.00%, underperforming the +7.35% return of the EPRA NAREIT Global Unhedged U.S. Index.

Environment ^-Global uncertainty surrounding interest rates and global economic growth impacted global real estate securities. Europe and Asia in particular sold off in May on fears that higher inflation in the U.S and elsewhere would push central banks to get aggressive with rate increases that would result in an economic slowdown. The more mature real estate markets of Australia and North America performed better than European and Asian markets even as many companies in Europe reported earnings figures that either exceeded consensus expectations or were at the top of the range. Performance in the U.S. was driven in part by merger and acquisition news, and in Australia, the REIT sector yield spread over the current Australia 10-year bond rate has helped REIT performance. Toward the end of the period investors reacted favorably to encouraging inflation reports, partly because they suggested that the US Federal Reserve’s attempt to guide the economy to a soft landing is more likely to succeed; also due to that yields on REITs will remain attractive. Australia and North America were the top performing regions posting total returns of 11.01% and 10.39% respectively while Europe, with a total return of 4.75%, and Asia, with a total return of 1.94%, lagged. Our overweight Asia and Europe combined with our underweight North America detracted form performance. Conversely, positive stock selection in each region contributed favorable to performance.

Outlook ^-In North America demand for real estate is high, capital flows into the sector are strong and we believe private market pricing of commercial real estate will drive performance in the public real estate sector. Even as economic growth slows, real estate fundamentals are staying strong, and we expect this growth, combined with demand for the asset class, to drive returns for REITs over the next 12 months. Upside may be limited, but downside risk is minimal. The Australian market continues to provide reasonable yields and includes companies with good earnings growth prospects. Britain still looks more attractive than mainland Europe on a discount to NAV basis. We expect higher returns in the UK over the next 12 months, partly due to the introduction of REITs as well as to favorable valuations. We still have a positive long-term view o n Asian property stocks, backed by the compelling fundamentals. In the near term, the direction of US interest rates is likely to be the main influence on Asian property stocks.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Global Real Estate Class NAV (began 4/28/06)	—	—	—	—	—	—	—	3.00%
EPRA NAREIT Global Unhedged U.S. Index^3,4,5	—	—	—	—	—	—	—	7.35%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 EPRA NAREIT Global Unhedged U.S. Index is an unmanaged index. Designed to track the performance of listed real estate companies and REITs worldwide, the series acts as a performance measure of the overall market and is also suitable for use as the basis for investment products such as derivatives and Exchange Traded Funds (ETFs).

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

High Income Fund

Subadviser: Sovereign Asset Management LLC
Portfolio Managers: Arthur N. Calavritinos

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks high current income, with capital appreciation as a secondary goal, by investing primarily in U.S. and foreign high yield bonds rated BB/Ba or lower and unrated equivalents. The Fund may invest up to 20% of assets in common stock and preferreds of high yield issuers both inside and outside of the United States.

Sector Weighting*	% of Total

Communications	23.97
Consumer, Cyclical	22.48
Industrial	7.86
Basic Materials	7.81
Consumer, Non-cyclical	7.61
Financial	3.88
Energy	3.63
Funds	3.04
Diversified	1.80
Asset Backed Securities	0.45

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in April 2006, the High Income Fund returned -0.14%, underperforming the +1.73% return of the Merrill Lynch High Yield Master II Constrained Index.

Environment ^-From the Fund’s inception at the end of April through August 31, 2006, high-yield bonds had modest returns because of concern over slower economic growth, rising inflation and higher interest rates. Since the Fund’s inception, we have positioned the portfolio more defensively, consistent with our expectation for slower economic growth, deteriorating credit quality, and higher default rates going forward. In addition, we looked for securities that we believe have more attractive risk/reward characteristics. For example, we reduced the Fund’s position in bonds trading at or above par where we thought the upside was limited. And in terms of sector exposure, we avoided Energy, as we believe these securities are priced for perfection at a time when oil prices are far ahead of supply and demand fundamentals.

At the same time, we added bonds of larger, more established businesses in defensive areas of the economy, such as Cable and Media. In addition, we overweighted airline securities, where we believe industry restructuring signals a secular change is underway in the investment climate for these securities. However, returns in this space were limited in recent months by worry that rising energy prices will pinch profitability.

Outlook ^-We remain cautious about the near-term prospects for the high-yield sector. After several years of strong performance, we believe high-yield bonds remain fairly richly valued, despite a modest pull-back in the second quarter of 2006. That’s because the spread, or difference in yield, between these riskier, lower-rated securities and the highest credit quality Treasury bonds is only 2% to 3%. That puts the incremental yield offered by high-yield bonds at near historic lows. In other words, investors are not being well compensated for taking on the additional credit risk that high-yield bonds entail. In this environment, we will maintain a conservative stance and collect our coupon payments as we continue to look for opportunities that we believe offer good value with an attractive risk-reward trade-off.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

High Income Class NAV (began 4/28/06)	—	—	—	—	—	—	—	–0.14%
Merrill Lynch High Yield Master II Constrained Index^3,4,5	—	—	—	—	—	—	—	1.73%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Merrill Lynch High Yield Master II Constrained Index is an unmanaged index composed of U.S. currency high-yield bonds issued by U.S. and non-U.S. issuers.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

High Yield Fund

Subadviser: Western Asset Management Company
Portfolio Manager: Ken Leech, Steve Walsh, Mike Buchanon, T.J. Settel and Ian Edmonds

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve maximum current income by investing primarily in high yield bonds issued by U.S. and foreign corporations and foreign governments and their agencies and instrumentalities. This Fund invests, under normal circumstances, at least 80% of its assets in high yield bonds and related investments.

Sector Weighting*	% of Total

Communications	15.33
Consumer, Cyclical	14.05
Energy	8.98
Government	8.62
Financial	8.51
Industrial	7.43
Consumer, Non-cyclical	6.59
Utilities	3.18
Basic Materials	2.55
Technology	2.03

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the High Yield Fund returned +6.49%, outperforming the +6.13% return of the Citigroup High Yield Index.

Environment ^-Interest rates moved broadly higher across the yield curve, driven by a tighter-than-expected Federal Reserve, stronger-than-expected economy, and a modest increase in inflation expectations. Short-term rates rose much more than long-term rates, leaving the yield curve substantially flat, but mildly inverted in the short end. The Fed raised its target funds rate by 0.25% at seven of its eight meetings, exceeding market expectations. The Fed paused at its August meeting, as it adopted a wait-and-see attitude to judge the extent to which the housing slowdown would affect the rest of the economy. Ben Bernanke replaced Alan Greenspan as Fed Chairman, but he gave no indication of any significant shift in monetary policy.

The economy bounced back strongly from its weak showing in the fourth quarter of 2005, with growth of more than 5% in the first quarter, but slowed to 2.9% growth in the second quarter. Headline inflation rose to the 3.5 -4.5% range, core inflation drifted higher to the 2.5 -3.0% range. Inflation concerns were fueled by gains in gold, industrial commodity and energy prices, and a decline in the dollar against most major currencies. The economy displayed some very solid fundamentals, as corporate profits exceeded expectations, and federal and state revenues registered some of the strongest gains in real terms (adjusting for inflation) in history. Nevertheless, the housing market showed signs of a spreading slowdown, which gave rise to the widely held perception that the overall economy would likely slow enough to reduce inflation pressures and allow the Fed to end its tightening cycle.

Outlook ^-Our outlook calls for continued moderate growth and relatively contained inflation. We are positioned with the expectation that there will be no significant changes in key macro-economic variables, but we also have strategies in place that are designed to hedge against unexpected economic weakness and higher-than-expected inflation.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

High Yield Class 1 (began 10/15/05)	—	—	—	—	—	—	—	6.41%
High Yield Class NAV (began 10/15/05)	—	—	—	—	—	—	—	6.49%
Citigroup High Yield Index^3,4,5	—	—	—	—	—	—	—	6.13%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Citigroup High Yield Index is an unmanaged index which measures the performance of below-investment grade debt issued by corporations domiciled in the U.S. or Canada.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

International Equity Index Fund

Subadviser: SSgA Funds Management, Inc. Portfolio Managers: Jeffrey Beach and James Francis

INVESTMENT OBJECTIVE & POLICIES ^-To seek to track the performance of a broad-based equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging market countries. Invests, under normal market conditions, at least 80% of its assets in securities listed in the Morgan Stanley Capital International All Country World Excluding U.S. Index.

Sector Weighting*	% of Total

Financial	23.14
Consumer, Non-cyclical	11.74
Energy	8.42
Industrial	8.41
Consumer, Cyclical	8.03
Communications	7.06
Basic Materials	6.74
Utilities	3.98
Technology	2.65
Funds	0.83

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the International Equity Index Fund returned +23.16%, underperforming the +23.79% return of the MSCI AC World Index Ex U.S. Gross Index.

Environment ^-The Fund was positioned during 2006 to replicate the return of the MSCI ACWI ex U.S. Index by owning most of the stocks in the index in the same proportion. A small portion of the Fund also used futures, exchange traded funds (ETF)s, American depository receipts (ADRs) and global depository receipts (GDRs), where owning local equities was less desirable. The Fund’s broad-based diversification allowed investors to take full advantage of the double-digit equity returns achieved by most non-U.S. markets during the year.

Early in the year, solid economic news, vigorous earnings growth and retreating bond yields caused investor confidence to surge worldwide. This uptrend continued through April and into early May, as corporate profits and economic activity stayed strong against a backdrop of stable inflation. Global equity markets traveled a bumpier road during May and June. Rising commodity and energy prices led to increased inflationary concerns and higher market volatility. Central banks around the world responded by continuing to raise interest rates. As the year ended, markets rebounded as investors realized that most economies were performing well, earnings appeared resilient and the future profit picture remained bright. Exchange rates also were a positive for the Fund. The U.S. dollar strengthened early in the year but then fell significantly against most major currencies.

Outlook ^-The combination of healthy economic growth, benign financial conditions, and valuations that remain remarkably compelling on a relative basis, suggests that non U.S. equities should be able to maintain their advantage over U.S. shares. Seasonal tendencies that often bring market dislocations in the autumn, and a potential rebound in volatility levels from their impressive recent declines, might temporarily benefit the U.S. dollar as a safe haven. But profits in the U.S. appear more vulnerable than earnings in non-U.S. markets, and the latter remain available on broadly cheaper terms.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

International Equity Index Fund Class NAV (began 10/29/05)	—	—	—	—	—	—	—	23.16%
MSCI ACWI (All Country World Index) Ex U.S. Gross Index^3,4,5	—	—	—	—	—	—	—	23.79%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 MSCI ACWI (All Country World Index) Ex U.S. Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets excluding U.S. As of June 2006 the MSCI ACWI consisted of the following 47 developed and emerging market country indices: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Korea, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Russia, Singapore Free, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, and the United Kingdom.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

International Opportunities Fund

Subadviser: Marsico Capital Management, LLC Portfolio Manager: James G.Gendelman

INVESTMENT OBJECTIVE & POLICIES ^-To seek long-term growth of capital. The Fund invests, under normal market conditions, at least 65% of its assets in common stocks of foreign companies that are selected for their long-term growth potential. The Fund may invest in companies of any size throughout the world. The Fund normally invests in issuers from at least three different countries not including the U.S. The Fund may invest in common stocks of companies operating in emerging markets.

Sector Weighting*	% of Total

Financial	21.33
Consumer, Cyclical	16.31
Consumer, Non-cyclical	12.55
Industrial	10.44
Basic Materials	5.57
Communications	4.58
Energy	4.40
Utilities	3.04
Technology	2.31
Diversified	1.96

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the International Opportunities Fund returned +23.51%, outperforming the +19.44% return of the MSCI EAFE Gross Index.

Environment ^-International equities, spanning both developed and emerging markets, posted solid gains for the period. The overall strong performance masked considerable underlying volatility as international equities were saddled by concerns regarding the potential for decelerating global growth, central bank interest rate tightenings, and higher inflation expectations.

Gains in developed markets, as measured by the MSCI EAFE Index, were widespread. Telecommunications was the only Index sector to post a modest decline. The Fund benefited by having little exposure to the weak-performing sector. Stock selection within the Telecommunications sector further aided our results. During the period, the Fund maintained, on average, an overweighted posture in the Consumer Discretionary sector and it benefited from stock selection within the sector. Stock selection in Industrials was an additional area of strength. The portfolio’s underweight in Financials and Utilities presented an opportunity cost, as the sectors were among the Index’s best performing areas. Stock selection in the Materials sector was another detractor, as our Materials-related investment results lagged those of the benchmark. Currency fluctuations may at times affect the Fund’s investment results because its foreign holdin gs are denominated in foreign currencies whose value may rise or fall against the dollar. These fluctuations had a modest, negative impact on the Fund’s performance during the period.

Outlook ^-We believe there are a substantial number of positive factors that – all else being equal – could be expected to provide a favorable backdrop for equity prices. These include continued low interest rates globally, overall constrained inflation worldwide, solid corporate profits, and – on balance – relatively attractive international equity market valuations.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

International Opportunities Class 1 (began 10/15/05)	—	—	—	—	—	—	—	23.36%
International Opportunities Class NAV (began 10/15/05)	—	—	—	—	—	—	—	23.51%
MSCI EAFE Gross Index^3,4,5	—	—	—	—				19.44%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 MSCI EAFE Gross Total Return Index (Europe, Australia, Far East) is a free-float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. As of June 2006, the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

International Small Cap Fund

Subadviser: Franklin Templeton Investment Counsel, Inc.
Portfolio Managers: Tucker Scott and Cindy L. Sweeting

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term capital appreciation. Under normal market conditions, at least 80% of the Fund’s net assets (plus borrowings for investment purposes) are invested in securities issued by foreign companies which have total stock market capitalizations or annual revenues of $4 billion or less (“small company securities”).

Sector Weighting*	% of Total

Industrial	19.05
Consumer, Cyclical	17.52
Consumer, Non-cyclical	16.77
Financial	7.56
Technology	5.04
Communications	4.94
Basic Materials	4.03
Energy	3.30
Utilities	2.71
Diversified	1.62

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the International Small Cap Fund returned +13.80%, underperforming the +21.13% return of the S&P/Citigroup Global ex US <$2 billion Index.

Environment ^-Global economic growth remained strong during the 12-month period. However, signs of moderation appeared toward the end of the period primarily due to three factors. First, many central banks, including those of the world’s three largest economies, continued to tighten monetary policy, thereby reducing the immense liquidity that helped fuel the current recovery. Second, oil prices remained elevated and reached a historical high during the period. Third, the U.S. housing market showed evidence of cooling.

When compared with the benchmark index, the Fund’s overweighted position and stock selection in the Netherlands benefited relative results, as did stock selection in Switzerland. By sector, the Fund’s relative performance was aided by stock selection in the energy and financials sectors. The underweighted position in Japan also helped relative performance; however, much of the positive impact was offset by stock selection among Japanese equities.

Stock selection in Hong Kong, South Korea and Canada hurt relative performance during the period. By sector, stock selection among health care stocks worked against the Fund’s results versus the index. An overweighted position and stock selection in the consumer discretionary sector negatively affected relative performance, as did an underweighted position and stock selection in the materials sector.

Outlook ^-The current global economic expansion — lasting just over three years by period-end — is maturing, but the timing of a potential slowing or retrenchment in growth is elusive. Robust economic growth could continue to be underpinned by ongoing high levels of liquidity (despite the tightening of monetary policy by central banks of the world’s three largest economies), productivity gains, a solid labor market, and strong, albeit expected slower, corporate profit growth. However, the negative effect of rising interest rates, expensive energy and other raw materials costs on corporate profitability, and a cooling in the U.S. housing market and consumer spending late in the period could presage a global economic slowdown. Corporate profitability and cash flow are at historically high levels; however, costs pressures are beco ming more visible.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

International Small Cap Class 1 (began 10/15/05)	—	—	—	—	—	—	—	13.58%
International Small Cap Class NAV (began 10/15/05)	—	—	—	—	—	—	—	13.80%
S&P/Citigroup Global ex U.S. <$2 Billion Index^3,4,5	—	—	—	—	—	—	—	21.13%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 S&P/Citigroup Global ex U.S. <$2 Billion Index is an unmanaged index which follows an objective, free float-weighted, rules based methodology, capturing the broad investable opportunity set.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

International Small Company Fund

Subadviser: Dimensional Fund Advisors, Inc.
Portfolio Managers: Karen E. Umland

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks to achieve long-term capital appreciation.

Sector Weighting*	% of Total

Industrial	22.27
Consumer, Cyclical	14.79
Consumer, Non-cyclical	13.64
Financial	10.65
Basic Materials	9.09
Technology	3.98
Energy	3.64
Communications	3.45
Diversified	1.62
Utilities	0.75

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in April 2006, the International Small Company Fund returned –6.70%, outperforming the –7.51% return of the combined Index (80% MSCI EAFE Small Cap Gross Index and 20% MSCI Emerging Markets Index Blend).

Environment ^-Returns in May 2006 were sharply negative across all US and international asset classes. Since then, global equity markets by and large stabilized and began recovering some of the ground lost. During the period from May to August 2006, dollar-denominated returns on international equities benefited from currency effects, as the US dollar depreciated against most major currencies except the yen. Dollar-denominated asset class returns on developed-market equities ranged from 0.8% for large cap value stocks to –7.9% for small cap stocks. Using the EAFE indices (Net Dividends) as proxies, small cap (EAFE Small) underperformed large cap (EAFE) by 7.5% .

Outlook ^-Between mid-May and mid-June, emerging market equities experienced a decline in value the likes of which had not been seen since 1998. Although emerging market equities performed well in July and August, those two months were not enough to offset the poor showing in May and June. Consequently, the dollar-denominated returns for emerging markets from May to August 2006, as measured by the MSCI Emerging Markets Index (Net Dividends), were -7.1% . Furthermore, the US dollar generally appreciated against emerging-market currencies, exacerbating the poor returns on emerging market equities from May to August 2006.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

International Small Company Class NAV (began 4/28/06)	—	—	—	—	—	—	—	–6.70%
80% MSCI EAFE Small Cap Gross Index/
20% MSCI Emerging Markets Index Blend^3,4,5	—	—	—	—	—	—	—	–7.51%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 MSCI EAFE Small Cap Gross Index/MSCI Emerging Markets Index Blend - A blended index is used combining 80% of the MSCI EAFE(r) Small Cap Index (Europe, Australia, Far East), an unmanaged index that is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. As of June 2006 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom and 20% of the MSCI Emerging Markets Index, an unmanaged index that is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. As of June 2006 the MSCI Emerging Markets Index consisted of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

International Stock Fund

Subadviser: Grantham, Mayo, Van Otterloo & Co. LLC
Portfolio Manager: Thomas Hancock and Anthony Hene

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks high total return by typically investing in a diversified fund of equity investments from a number of developed markets outside the U.S. The subadviser evaluates and selects individual stocks, countries and currencies based on several factors which may include valuation, improving fundamentals, GDP trends, industrial competitiveness and interest rate differentials.

Sector Weighting*	% of Total

Financial	28.13
Consumer, Cyclical	16.65
Consumer, Non-cyclical	14.94
Energy	10.09
Basic Materials	8.30
Industrial	7.95
Utilities	4.78
Communications	4.77
Technology	2.10
Diversified	0.45

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the International Stock Fund returned +22.19%, outperforming the +19.44% return of the MSCI EAFE Gross Total Return Index.

Environment ^-Early in the period, international stocks were generally strong, aided by the surging Japanese market and declining oil prices. As time passed, reality set in as oil supply concerns intensified and oil demand remained robust, Japan lost some of its luster, Middle East tensions rose, and the ultimate extent of the U.S. interest rate hikes became more uncertain. We. have favored higher quality and more defensive companies throughout the year on valuation grounds. Despite this mix of positive and negative news, international stocks have generally performed well, with returns to U.S. investors helped by a weak U.S. dollar. In this environment, we favored more defensive stocks and higher quality companies based on their valuation characteristics. Furthermore, we favored Germany and Japan over the United Kingdom. Health Care shares we re attractive due to their higher quality and lower valuations. Energy stocks have exhibited good momentum.

Outlook ^-International equity markets are not particularly cheap at current prices. Attractive returns depend on solid economic fundamentals that would lead to robust earnings growth. While this is within the realm of possibility, particularly in regions where profit margins are relatively depressed, the market declines of May and June should serve as a warning for investors who have been taking on more risk in the last few years, and, up until recently, have been handsomely rewarded for it. A much more judicious approach to risk and a healthy appreciation of the merit of higher quality and more defensive names are now appropriate. We remain overweight higher quality and more defensive companies. We still favor Japan and Germany over the UK and are overweight Health Care and Energy.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

International Stock Class 1 (began 10/15/05)	—	—	—	—	—	—	—	22.19%
MSCI EAFE Gross Total Return Index^3,4,5	—	—	—	—	—	—	—	19.44%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

International Value Fund

Subadviser: Franklin Templeton Investment Counsel, Inc.
Portfolio Managers: Antonio C. Docal, Tucker Scott and Cindy L. Sweeting

INVESTMENT OBJECTIVE & POLICIES ^-To achieve long-term growth of capital by investing primarily in equity securities of companies located outside the United States, including those in emerging markets.

Sector Weighting*	% of Total

Communications	19.50
Financial	18.77
Consumer, Non-cyclical	11.53
Industrial	11.52
Consumer, Cyclical	8.18
Energy	6.67
Basic Materials	4.28
Technology	4.15
Utilities	2.09
Diversified	1.52

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the International Value Fund returned +18.35%, underperforming the +19.44% return of the MSCI EAFE Gross Index.

When compared with the benchmark index, the Fund’s overweighted allocation and stock selection in the Netherlands and Norway benefited relative results, as did an underweighted position and stock selection in Japan. By sector, the Fund’s relative performance was supported by stock selection in the industrials and consumer discretionary sectors. Although the financials sector delivered the greatest contribution to the Fund’s return, the underweighted allocation versus the benchmark proved detrimental to relative performance.

Stock selection in the U.K., Germany and France hurt relative performance during the period, as did an underweighted position and stock selection in Switzerland. By sector, stock selection among energy and materials stocks worked against the Fund’s results versus the index, as did an overweighted position and stock selection in the information technology sector. Of the Fund’s stock holdings, Israeli network security software provider Check Point Software Technologies, which is not an index component, declined in value during the period and was the largest detractor from the Fund’s relative results. The amount of cash in the portfolio was also a drag on performance.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

International Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	18.22%
International Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	18.35%
MSCI EAFE Gross Index^3,5,6	—	—	—	—	—	—	—	19.44%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the International Value Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 MSCI EAFE Gross Total Return Index (Europe, Australia, Far East) is a free-float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. As of June 2006, the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Investment Quality Bond Fund

Subadviser: Wellington Management Company, LLP
Portfolio Manager: Thomas L. Pappas

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve a high level of current income consistent with the maintenance of principal and liquidity by investing, under normal market conditions, at least 80% of the Fund’s net assets in investment grade bonds. The Fund will invest primarily in corporate bonds and U.S. government bonds with intermediate to longer-term maturities.

Sector Weighting*	% of Total

Government	20.49
Mortgage Securities	16.03
Financial	15.73
Asset Backed Securities	5.52
Communications	4.48
Consumer, Non-cyclical	3.19
Consumer, Cyclical	2.44
Utilities	2.43
Basic Materials	1.71
Energy	1.56

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Investment Quality Bond Fund returned +2.68%, outperforming the +2.32% return of the 50% Lehman Brother Gov’t Bond/50% Lehman Bros Credit Bond Index Blend.

Environment ^-There was greater uncertainty about the direction of US monetary policy during the first half of 2006 due to the appointment of the new Federal Reserve Chairman. The Federal Reserve maintained measured rate increases to the Federal Funds target rate throughout the period until its last meeting during the period on August 8, 2006. The six Fed rate hikes during the period brought the federal funds rate to 5.25%, up 150 basis points. US bond yields have risen over the latter part of the period in reaction to the rate hikes and the stronger economic data.

During the period, performance was primarily driven by our shorter duration posture and our yield curve positioning as rates increased throughout the period. We were underweight the short end of the curve and overweight the 10-Year portion. Our opportunistic allocation to high yield and structured sectors, Asset Backed Securities (“ABS”) and Commercial Mortgage Backed Securities (“CMBS”), and our positive security selection within our allocation to investment-grade corporate bonds also added to the Fund’s outperformance relative to the benchmark.

Outlook ^-US economic growth has slowed over the period due to the slowing housing market and increasing energy prices and interest rates. As a result, we have moved from a short duration posture to neutral, balancing meager yield valuations with anticipation of further economic slowdown. Without an impetus on the immediate horizon for the curve to steepen, we are also neutral on the yield curve. We continue to underweight the government sector as Treasury yields just over 5% are not attractive. ABS and CMBS yield spreads continue to grind tighter across all sub sectors; however CMBS remains attractive on a relative value basis to corporate bonds. We continue to reduce Mortgage-Backed Securities and prefer the stability of other structured sectors, namely ABS and CMBS.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Investment Quality Bond Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.64%
Investment Quality Bond Class NAV (began 10/15/05)	—	—	—	—	—	—	—	2.68%
Lehman Brothers Gov’t Bond/Lehman Brothers Credit
Bond Index Blend^3,4,5	—	—	—	—	—	—	—	2.32%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Government Bond Index and Lehman Brothers Credit Bond Index Blend-A blended index is used combining 50% of the Lehman Brothers Government Bond Index which is an unmanaged index that represents securities issued by the U.S. Government (i.e. securities in the Treasury and Agency indices); and 50% Lehman Brothers Credit Bond Index, which is an unmanaged index of publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC registered.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Large Cap Fund

Subadviser: UBS Global Asset Management
Portfolio Manager: Thomas J. Digenan, John C. Leonard and Thomas Cole

INVESTMENT OBJECTIVE & POLICIES ^-To seek to maximize total return, consisting of capital appreciation and current income by investing at least 80% of its net assets in equity securities of U.S. large capitalization companies.

Sector Weighting*	% of Total

Financial	23.39
Consumer, Non-cyclical	21.54
Communications	10.40
Technology	10.21
Industrial	8.87
Consumer, Cyclical	7.76
Utilities	6.01
Energy	5.31
Mortgage Securities	1.50
Government	0.05

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Large Cap Fund returned +10.79%, underperforming the +11.65% return of the Russell 1000 Index.

Environment ^-Above-average earnings growth came from the energy sector, as crude oil prices hit record highs during the reporting period. Marathon Oil, one of our select holdings in the oil industry, returned delivered strong returns over the period. Despite the recent spike in oil prices and subsequently in oil stocks, we continue to underweight this sector. Our view is that crude oil prices at current levels are not sustainable and are not supported by current fundamentals.

In our other main underweight, hardware and semiconductors, we are seeing better coordination along the semiconductor chip value chain, leading to improved inventory management. However, the semiconductor cycle should continue to be muted, and warrants less attention than in prior years.

The financials sector continues to be our top overweight, with Morgan Stanley our top holding. Our position performed solidly over the reporting period.

We maintain an overweight to the health care sector, where we are seeing meaningful changes in the competitive dynamics of large cap pharmaceutical companies. We believe the 2006 Medicare prescription drug benefit program rollout creates both significant pricing pressure and opportunities, and we would like to maintain exposure to companies with unique or non-commodity product concentrations, such as in vaccines, anti-infectives and biologics. Specialty pharmaceutical maker Allergan was one of the top contributors to portfolio returns over the period.

Outlook ^-Looking ahead, we believe a number of factors will determine the strength of the economy. As the Federal Reserve Board continues its efforts to fight inflation, it will be forced to strike a difficult balance between maintaining price stability and not raising short-term interest rates so high as to put the brakes on what has been a period of robust economic expansion.

Meanwhile, although a cooling housing market is an issue of potential concern, other economic indicators remain solid—job growth and corporate profitability are both stable, and we anticipate they should remain so over the months ahead. Ultimately, we believe the equity markets will reward those companies that are leaders within their industries, generate free cash flow over time on behalf of their investors, and are able to best navigate an ever-changing economic landscape. We continue to seek out those companies through extensive bottom-up research, and to position the portfolio accordingly.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Large Cap Class 1 (began 10/15/05)	—	—	—	—	—	—	—	10.73%
Large Cap Class NAV (began 10/15/05)	—	—	—	—	—	—	—	10.79%
Russell 1000 Index^3,4,5	—	—	—	—	—	—	—	11.65%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 1000 Index is an unmanaged index which measures the performance of the 1,000 largest companies in the Russell 3000 Index.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Large Cap Value Fund

Subadviser: Mercury Advisers
Portfolio Manager: Bob Doll

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks long-term growth of capital through investment primarily in a diversified portfolio of equity securities of large-cap companies located in the United States. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets in common stocks of large cap companies the subadviser selects from among those that are, at the time of purchase, included in the Russell 1000 Value Index.

Sector Weighting*	% of Total

Financial	25.42
Energy	22.01
Consumer, Non-cyclical	15.94
Technology	8.18
Industrial	6.74
Consumer, Cyclical	6.34
Basic Materials	4.86
Communications	4.55
Utilities	1.75

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Large Cap Value Fund returned +13.43%, underperforming the +17.45% return of the Russell 1000 Value Index.

Environment ^-Shares of large-cap value companies significantly outperformed their large-cap growth counterparts during the past 12 months. The Russell 1000 Value Index advanced 10.98% while the Russell 1000 Growth Index posted a small gain of 0.22% .

We maintained the Fund’s pro-cyclical stance during the period. Despite weakness in the U.S. equity market early in the third quarter, we retained the portfolio’s overweight in sectors that are benefiting from global economic growth, as we believe the pause will be temporary. The Federal Reserve ended its rate-tightening campaign pausing at their August meeting, although the central bank will likely continue its anti- inflation rhetoric. We expect that as fears of slowing growth overtake inflation concerns, the Fed will begin easing monetary policy in the first half of next year.

Regarding corporate earnings, we continue to believe that given the slowing economy, current earnings expectations are too high and that disappointments are likely for the next couple of quarters. We believe that the stock correction earlier this year probably saw its lows a couple of months ago. The rally in August can likely be attributed to lower oil prices and the growing perception that the Fed’s tightening has finally ended. We foresee some turbulent times ahead as growth cools and earnings disappoint, but we are sticking with our forecast for a soft economic landing. We believe that the Fed will begin easing before economic growth becomes too weak.

At period end, the Fund was overweight (versus the Russell 1000 Value Index) to Energy, Information Technology and Health Care, and was underweight to Financials, Utilities, Telecommunication Services, Consumer Staples and Consumer Discretionary sectors.

Outlook ^-One factor that points to stronger equity market performance going forward is that over the past few years, strong earnings growth combined with little upward movement in stocks caused stock valuations to contract significantly. These decent valuation levels should provide some protection from slowing earnings growth and may allow stock prices to move higher, but perhaps not before a growth scare related to earnings disappointments takes the market somewhat lower.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	Inception	1-year	5-year	10-year	Inception²

Large Cap Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	13.33%
Large Cap Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	13.43%
Russell 1000 Value Index^3,4,5	—	—	—	—	—	—	—	17.45%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Mid Cap Core Fund

Subadviser: AIM Capital Management, Inc.
Portfolio Manager: Ronald S. Sloan

INVESTMENT OBJECTIVE & POLICIES ^-To achieve long-term growth of capital. The Fund seeks to achieve its objective by investing, normally, at least 80% of its assets in equity securities, including convertible securities, of mid-capitalization companies.

Sector Weighting*	% of Total

Consumer, Non-cyclical	22.25
Industrial	11.29
Basic Materials	9.19
Technology	7.92
Communications	7.24
Financial	6.52
Consumer, Cyclical	5.54
Energy	3.37
Utilities	2.83
Diversified	1.10

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Mid Cap Core Fund returned +8.68%, underperforming the +13.32% return of the Russell Midcap Index.

Environment ^-Since last fall, market sentiment has been growing more cautious. The U.S. market has switched from a focus on the benefits of economic growth to a concern about the economic impact of higher interests rates and inflation.

During the period, the Federal Reserve continued its tightening policy, raising the federal funds target rate to 5.25% as Ben Bernanke settled into his role as Fed chairman. The Fed raised short-term interest rates 17 times since June 2004 before pausing in August. Although the current level of interest rates is low by historical standards, a five-fold increase in two years could affect the economy, especially industries that have benefited from low rates, such as housing-related industries. Builders now view sales conditions as poor, a major shift in just one year.

The Fund delivered strong absolute performance, largely due to investments in the Energy and Materials sectors. Relative underperformance versus the benchmark was mostly attributable to a significant underweight position in Financials as well as stock selection within Industrials.

Currently, we are focused on industry-leading companies that are less sensitive to interest rates, have flexible cash and stable growth profiles. The portfolio is well diversified across most sectors. However, it is still positioned more defensively than the Index. The only noticeable overweight is in Consumer Staples stocks. We are underweight in Financials and Consumer Discretionary stocks due to the risk of higher rates and a softening housing market. We actively took profits in Energy stocks as they became more fairly valued early in 2006, and shifted toward more compelling opportunities in Consumer Staples, Health Care, Information Technology, and specialized Industrials and Materials businesses.

Outlook ^-We are constructive yet cautious. Our more conservative portfolio seeks to participate well in growth cycles and preserve capital in less robust credit conditions, when earnings growth is more difficult to maintain and higher quality businesses demand a premium. We believe our emphasis on fair valuations and fundamentally sound companies will prevail.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Mid Cap Core Class 1 (began 10/15/05)	—	—	—	—	—	—	—	8.67%
Mid Cap Core Class NAV (began 10/15/05)	—	—	—	—	—	—	—	8.68%
Russell Midcap Index^3,4,5	—	—	—	—	—	—	—	13.32%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell Midcap Index is an unmanaged index that measures the performance of the 800 smallest companies in the Russell 1000 index, which represents approximately 30% of the total market capitalization of the Russell 1000 Index.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Mid Cap Index Fund

Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES ^-To seek to approximate the aggregate total return of a mid cap U.S. domestic equity market index. Invests, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in (a) the common stocks that are included in the S&P 400 Index and (b) securities (which may or may not be included in the S&P 400 Index) that MFC Global (U.S.A.) believes as a group will behave in a manner similar to the index.

Sector Weighting*	% of Total

Financial	13.71
Consumer, Non-cyclical	12.96
Industrial	11.94
Consumer, Cyclical	10.93
Energy	8.68
Technology	8.01
Utilities	5.68
Government	4.41
Communications	3.73
Basic Materials	3.16

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Mid Cap Index Fund returned +9.20%, outperforming the +8.17% return of the S&P MidCap 400 Index.

Environment ^-The U.S. economy seems to be slowing down, with growth in the gross domestic product (GDP) declining from a 5.6% gain in the first quarter of 2006 to just 2.5% in the second quarter. Recent data show inflation to be at an 11-year high. Core inflation has risen 2.4% in the past 12 months.

After 17 consecutive interest rate increases, the Federal Reserve paused and kept the benchmark rate at 5.25% in August. However, Board Chairman Ben Bernanke did not rule out further increases in 2006.

Job growth picked up in August and the unemployment rate approached a five-year low at 4.7%, down from 4.8% in July, and U.S. employers added 128,000 workers to their payrolls, up from a revised 121,000 in July. The Conference Board’s Consumer Confidence Index dropped to 99.6 in August from 107.0 in July. The index is at its lowest level this year.

For the period, Financials and Information Technology were the best performing sectors, returning 13.54% and 11.72%, respectively. Consumer Discretionary and Energy were the worst performers, returning –6.47% and -0.20%, respectively.

Outlook ^-The economy continues to grow modestly, with growth expectations around 2.6% for the second half of this year and 2.7% in 2007. In the short term, consumer spending is expected to slow down in the face of higher gasoline prices and higher interest rates. It appears that the Fed is at the end of its current tightening cycle, with fewer signs of price pressures and a cooling economy.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Mid Cap Index Fund Class NAV (began 10/29/05)	—	—	—	—	—	—	—	9.20%
Standard & Poors MidCap 400 Index^3,5,6	—	—	—	—	—	—	—	8.17%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Mid Cap Index Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Standard & Poors MidCap 400 Index is an unmanaged index of 400 domestic stocks of medium-sized companies.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Mid Cap Stock Fund

Subadviser: Wellington Management Company, LLP
Portfolio Manager: Michael Carmen

INVESTMENT OBJECTIVE & POLICIES ^-To achieve growth of capital by investing at least 80% of the Fund’s net assets in equity securities of mid-sized companies with significant capital appreciation potential.

Sector Weighting*	% of Total

Consumer, Non-cyclical	18.19
Technology	17.48
Industrial	11.04
Communications	8.78
Consumer, Cyclical	8.63
Financial	4.79
Basic Materials	4.52
Energy	3.71

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Mid Cap Stock Fund returned +14.27%, outperforming the +9.91% return of the Russell Mid Cap Growth Index.

Environment ^-Despite volatile energy prices, rising interest rates and concerns of a slowing U.S. economy, the equity markets experienced positive returns during the period. Overall, mid-cap stocks underperformed small-cap stocks and generally outperformed large-caps. However, all market capitalization segments provided strong absolute returns. Within the Index, Telecommunications was the best performing sector while Consumer Discretionary delivered the weakest returns.

The Fund outperformed its benchmark Index as a result of positive stock selection. The greatest contributors to positive relative performance from stock selection were Information Technology, Health Care and Materials. While Utilities are a small component of the Index, the portfolio’s zero weight in Utilities detracted from relative performance during the period.

Outlook ^-As a result of our bottom-up decision-making process, the Portfolio has the largest exposures to Industrials and Information Technology. In addition, the Portfolio continues to have no allocation to the Utilities sector. We do see the potential for rising costs, particularly from raw materials, labor and energy. However, we are confident in our ability to find companies with improving margins, growing profits and higher returns on investment.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Mid Cap Stock Class 1 (began 10/15/05)	—	—	—	—	—	—	—	14.20%
Mid Cap Stock Class NAV (began 10/15/05)	—	—	—	—	—	—	—	14.27%
Russell Mid Cap Growth Index^3,4,5	—	—	—	—	—	—	—	9.91%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell Mid Cap Growth Index is an unmanaged index that contains those stocks from the Russell Mid Cap Index with a greater than average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Mid Cap Value Fund

Subadviser: Lord, Abbett & Co. LLC
Portfolio Managers: Eileen K. Banko, David G. Builder, Howard Hansen and Edward K. von der Linde

INVESTMENT OBJECTIVE & POLICIES ^-To seek capital appreciation. The Fund invests primarily in equity securities which it believes to be undervalued in the marketplace. Under normal market conditions, at least 80% of the Fund’s net assets (plus any borrowings for investment purposes) will consist of investments in mid-sized companies, with market capitalizations of approximately $500 million to $10 billion.

Sector Weighting*	% of Total

Communications	15.98
Consumer, Cyclical	12.12
Consumer, Non-cyclical	11.55
Financial	10.53
Industrial	10.38
Basic Materials	8.25
Utilities	7.67
Energy	4.35
Technology	2.87

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Mid Cap Value Fund returned +7.18%, underperforming the +17.01% return of the Russell Midcap Value Index.

Environment ^-Stock selection within the Consumer Discretionary sector along with poor performance from some stocks within the Auto & Transportation and Health Care sectors were the Fund’s primary detractors.

Within the Auto & Transportation sector, shares of an auto parts supplier detracted from portfolio performance after it reported lower-than-expected quarterly earnings. The company experienced higher steel costs and production inefficiencies in its heavy truck division.

Within Health Care, performance of an eye health care company hurt portfolio returns as its shares fell following the announcement that an increase in cases of a rare eye infection could be related to the use of its contact lens solution. Annual revenue and earning estimates were lowered.

On the positive side, stock selection within the Utilities and Producer Durables sectors and a forestry holding in the Materials & Processing sector contributed to performance. Within the telecommunications industry of the Utilities sector, shares of a telecommunications services provider rose following the announcement that it was acquiring a metropolitan fiber and wide area network company.

Outlook ^-Despite the overall market correction during the second quarter of 2006, the market’s leadership remains dominated by short-term earnings expectations and share price momentum strategies. This is classically a late economic cycle trading pattern.

For the last 18 months, we have been turning the portfolio toward the stocks of companies that we expect will improve their profitability over the next two to four years. This longer-term focus has put us at odds with the current market preoccupation with short-term trends, and is reflected in our relative performance. We continue to execute on our investment discipline, which is grounded in the longer-term improving performance of high-quality companies. We believe our current investments will generate longer-term gains that will more than offset any near term relative underperformance.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Mid Cap Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	7.11%
Mid Cap Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	7.18%
Russell Midcap Value Index^3,4,5	—	—	—	—	—	—	—	17.01%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Mid Cap Value Equity Fund

Subadviser: Riversource Investments, LLC
Portfolio Managers: Stephen Shroll, Laton Spahr and Warren Spitz

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks long-term growth of capital by investing at least 80% of net assets in equity securities of medium-sized companies.

Sector Weighting*	% of Total

Financial	16.20
Industrial	12.77
Utilities	9.85
Energy	9.33
Consumer, Cyclical	8.30
Consumer, Non-cyclical	7.92
Communications	6.47
Technology	5.23
Basic Materials	4.95

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in April 2006, the Mid Cap Value Equity Fund returned –3.50%, underperforming the +0.68% return of the Russell Midcap Value Index.

Environment ^-The equity market was strong and accelerating in April and early May, with companies beating their estimates and multiples expanding. The Russell MidCap® Value Index, the portfolio’s benchmark index, peaked on May 10. Then, the market began responding to investors’ concerns about the strength of the economy and experienced a significant reassessment of risk across all segments. This volatile market correction was based in uncertainty stemming from rising interest rates, higher inflation and slower economic growth. Some market pundits, however, attribute the timing of the correction to an off-the-record comment by Chairman Bernanke.

In the marketplace, sectors that lagged most since we took over management of the portfolio on May 1 were technology, consumer discretionary and integrated oils. Conversely, the best performing sectors were consumer staples and utilities—historically defensive sectors.

In late August, we made changes to the portfolio so it could better adapt to the weaker economic environment. We reduced some positions in the following sectors: other energy, producer durables and basic materials, although we are still overweight in these sectors compared to the Russell MidCap® Value Index. Alternately, we increased our positions in the utilities, financials, and health care sectors. Health care and financials, although underperforming in the Russell MidCap® Value Index, were beneficial within the portfolio. Strong stock selection within these sectors benefited the portfolio’s performance.

Outlook ^-Over the long term, we expect to reduce some cyclical themes in the portfolio. We have invested broadly in some industries with long-term potential to outperform and continue to watch for opportunities.

Regardless of market conditions, we continue to find a wide variety of deep value, contrarian ideas and — when appropriate — incorporate the best ideas into the portfolio. Mid cap stocks have outperformed for an extended period, and we expect continued acquisition activities to buoy up the potential outperformance of the asset class. We expect the rapid slow down of residential real estate to continue and will be watchful of opportunities there, as well.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Mid Cap Value Equity Class NAV (began 4/28/06)	—	—	—	—	—	—	—	–3.50%
Russell Midcap Value Index^3,4,5	—	—	—	—	—	—	—	0.68%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Natural Resources Fund

Subadviser: Wellington Management Company, LLP
Portfolio Manager: James A. Bevilacqua

INVESTMENT OBJECTIVE & POLICIES ^-To achieve long-term total return. Under normal market conditions, the Fund will invest at least 80% of its net assets in equity and equity-related securities of natural resources-related companies worldwide. Natural resources-related companies include companies that own or develop energy, metals, forest products and other natural resources, or supply goods and services to such companies. The Fund seeks to invest in companies that are expected to benefit from rising demand for natural resources and natural resource-based products and services.

Sector Weighting*	% of Total

Energy	54.37
Basic Materials	32.74

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Natural Resources Fund returned +24.62%, outperforming the +14.96% return of the Combined⁴Index.

Environment ^-2005 was a year of natural disasters, with hurricanes Katrina and Rita having an adverse effect on the oil & gas industry. Late in the year, the price of oil ranged in the low $60s and declined during an unusually warm winter season, but then advanced sharply to $75 in mid-April 2006, due to concerns of supply disruption. By the end of the August, oil prices declined to around $70, curbing the industry’s concerns of overly inflated prices. The price of natural gas plunged from $14 per thousand cubic feet to roughly $6. Following unfounded concerns of supply shortages, a relatively mild winter season, and consistent inventory levels, natural gas prices declined while oil prices leveled off in the high range.

Base metals experienced growth throughout the period, led by nickel, tin and copper, due to strong demand and lower inventory levels. The U.S. dollar price of an ounce of gold rose during the period, from $470 per ounce to $626 per ounce. This upward trajectory was caused by the weakened U.S. dollar, fears of inflation and slowing demand.

For the period from inception to August 31, 2006, the Fund slightly underperformed its benchmark. Industry allocation was negative, but stock selection overall was positive. In the Energy Equipment & Services industry, the Fund benefited from its underweight position, but was hurt by weak stock selection. The underweight position in the strong performing Metals & Mining industry and the overweight in the weaker performing Oil & Gas industry also contributed to the Fund’s underperformance. However, strong stock selection in both industries helped to offset the impact.

Outlook ^-At period end, the Fund had an underweight position relative to the benchmark in Paper & Forest Products, Energy Equipment & Services, and Metals & Mining. The Fund had an overweight position relative to the benchmark in Oil & Gas, which remains the largest bet for the portfolio. The Fund is still positioned to take advantage of the rising demand for oil, as we are overweight oil and gas companies.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Natural Resources Class 1 (began 10/15/05)	—	—	—	—	—	—	—	24.55%
Natural Resources Class NAV (began 10/15/05)	—	—	—	—	—	—	—	24.62%
MSCI World Energy Index, MSCI World Metals,
MSCI World Paper and Forest Products Index Blend^3,4,5	—	—	—	—	—	—	—	14.96%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 The Combined Index is comprised of 60% MSCI World Energy Index, 30% MSCI World Metals & Mining Index, and 10% MSCI World Paper & Forest Products Index.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Quantitative All Cap Fund

Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Brett Hryb and Harpreet Singh

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term growth of capital. The Fund seeks to achieve its objective by investing, under normal circumstances, primarily in equity securities of U.S. companies. The Fund will generally focus on equity securities of U.S. companies across the three market capitalization ranges of large, mid and small.

Sector Weighting*	% of Total

Financial	22.27
Consumer, Non-cyclical	19.03
Consumer, Cyclical	14.28
Technology	10.09
Communications	9.55
Industrial	9.09
Energy	8.20
Utilities	4.43
Basic Materials	2.70
Mortgage Securities	0.36

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in July 2006, the Quantitative All Cap Fund returned +1.10%, underperforming the +2.35% return of the Russell 3000 Index.

Environment ^-The Russell 3000 Index finished up 2.4% for July and August. The market moved higher in anticipation of a hiatus on interest rate increases, lower oil prices and in response to better-than-expected second quarter earnings results. Economic data released during the period point towards a gradual slowdown in economic growth. The biggest contributor to the slower growth is the housing sector. New and existing home sales were down double-digits from last year’s levels and home price increases declined substantially. The pace of job growth eased slightly over the last two months and second quarter economic growth came in at 2.9% .

Oil sold off, after reaching record highs of around $78 a barrel, once the conflict between Israel and Lebanon eased. Second quarter earnings results were outstanding. Nearly 70% of the companies that reported exceeded expectations. Earnings grew by 14%, marking the sixteenth consecutive quarter of double-digit earnings growth. The best performing sectors were Health Care, Power Utilities and Consumer Staples. The worst performing sectors were Industrials, Basic Materials and Consumer Discretionary. Large-cap stocks outperformed small-cap stocks.

The Fund underperformed the Russell 3000 Index during the period. Stock selection within Financial Services and Capital Goods took away from the Fund’s performance. The underperformance of small-cap stocks versus large-caps detracted from performance, as the Fund was overweight small-caps.

Outlook ^-We like what we see on a number of key fronts for U.S. markets. Strong earnings growth and good overall economic growth should bode well for the rest of the year and into 2007. Although interest rates and energy costs are a concern, the Fed appears poised to leave interest rates unchanged for now, while energy prices, a key cause of inflation concerns, appear to be moderating and could fall further as new supply comes on line. Market valuations still appear relatively attractive. We feel the U.S. market could return double digits by the end of the year. The Fund is focused on generating above-average returns across most economic environments while maintaining a diverse risk profile that seeks to minimize economic as well as factor risk.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

	Cumulative Total Return					Cumulative Total Return
PERFORMANCE TABLE^1,4	Without Maximum Sales Charge (NAV)					With Maximum Sales Charge (POP)

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Quantitative All Cap Class A (began 7/28/06)	—	—	—	1.10%	—	—	—	–3.99%
Quantitative All Cap Class B (began 7/28/06)	—	—	—	1.10%	—	—	—	–3.90%
Quantitative All Cap Class C (began 7/28/06)	—	—	—	1.10%	—	—	—	0.10%
Quantitative All Cap Class I (began 7/28/06)	—	—	—	1.20%	—	—	—	1.20%
Russell 3000 Index^3,5,6	—	—	—	2.35%	—	—	—	2.35%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since July 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Quantitative All Cap Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Quantitative Mid Cap Fund

Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Rhonda Chang and Noman Ali

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term capital growth by investing at least 80% of the Fund’s total assets in U.S. mid cap stocks, convertible preferred stocks, convertible bonds and warrants.

Sector Weighting*	% of Total

Financial	14.52
Consumer, Non-cyclical	13.66
Industrial	12.10
Consumer, Cyclical	10.09
Energy	9.16
Technology	5.55
Communications	5.32
Funds	3.89
Utilities	3.74
Basic Materials	1.24

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Quantitative Mid Cap Fund returned +4.51%, underperforming the +8.17% return of the S&P MidCap 400 Index.

Environment ^-This period was characterized by continued interest rate hikes by the Federal Reserve to fight inflation. Investors, concerned by the Fed’s hawkish stance and slowing economy, took profits, selling off high-growth and momentum stocks. Increased uncertainty from geopolitical tensions in the Middle East and the risk of oil supply disruptions, which kept the price of oil close to $70, further contributed to investors’ concerns. Against this backdrop, Technology and Industrials were the best performing sectors in the Index, although both sold off sharply in the second quarter of 2006. Consumer Discretionary was the worst performing sector as slowing consumer spending hurt retail stocks, due to a weak housing market and record gasoline prices. The second quarter of 2006 was the Fund’s worst period of performance, with Industrials and Technology sectors among the top detractors. In Industrials, the sell-off was led by commodities and mining-related equipment stocks due to fears of a slowing economy. Reduced earnings guidance coupled with the negative sentiment on the options backdating issue were the main factors for weakness in the Technology sector.

Outlook ^-We feel that the current market sell-off is a short-term correction, and that over the next 12 to 18 months the markets should move higher. There are many positives to bring stocks higher. The economy is expected to continue expanding, and inflation should remain under control. The Fed is nearing the end of its tightening policy, which has historically been good for the market. Another plus is strong corporate earnings growth. Finally, corporations have historically high cash on their balance sheets. This should fuel more share buybacks, increased dividends and more merger & acquisition activity. The latter should provide downside protection to valuations of small- and mid-cap companies, while the first two should increase shareholder returns.

Given the above scenario, we believe investors should take advantage of this downturn to add to positions that are down on profit taking. Stocks with strong earnings momentum, predictability, consistency and reasonable valuations should bounce back, because stocks with these characteristics tend to outperform over the long run.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Quantitative Mid Cap Class 1 (began 10/15/05)	—	—	—	—	—	—	—	5.74%
Quantitative Mid Cap Class NAV (began 10/27/05)	—	—	—	—	—	—	—	4.51%
Standard & Poors MidCap 400 Index (10/15/05)^3,4,5	—	—	—	—	—	—	—	5.85%
Standard & Poors MidCap 400 Index (10/27/05)^3,4,5	—	—	—	—	—	—	—	8.17%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Standard & Poors MidCap 400 Index is an unmanaged index of 400 domestic stocks of medium-sized companies.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Quantitative Value Fund

Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Brett Hryb, Chris Benson and Harpreet Singh

INVESTMENT OBJECTIVE & POLICIES ^-Seeks long-term capital appreciation by investing primarily in large-cap U.S. securities with the potential for long-term growth of capital. The subadviser uses both qualitative and quantitative analysis to determine the best investment values, emphasizing securities that may have been undervalued by the market.

Sector Weighting*	% of Total

Financial	33.31
Energy	13.31
Consumer, Non-cyclical	12.54
Communications	9.76
Consumer, Cyclical	9.16
Utilities	4.60
Industrial	4.31
Technology	3.36
Basic Materials	3.05
Mortgage Securities	0.75

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Quantitative Value Fund returned +17.98%, outperforming the +17.45% return of the Russell 1000 Value Index.

Environment ^-The market has been strong for value-oriented investors since last October. During that period, the Russell 1000 Value Index outperformed its Growth counterpart by more than 9%: 12.4% versus 3.2% . Growth investing has been hurt by concerns over high energy costs, inflation and the falling housing market.

Energy prices have been high for several years. Over the past year, the aftermath of Hurricane Katrina and tensions in the Middle East pushed prices into record territory. Inflation also rose, causing investor concern over a prolonged Federal Reserve monetary tightening cycle. The U.S. housing market, long a bastion of wealth for consumers, began to slow. Key coastal areas saw fairly dramatic price declines from the peak, as overall inventories of unsold homes rose meaningfully. Despite these risks, however, the U.S. economy continued to show stable growth.

The strongest sectors included classic value sectors, such as Financials, Telecommunications, Consumer Staples and Materials. The more momentum-based sectors, such as Technology and Consumer Cyclicals have underperformed by a wide margin. Although the Fund underperformed the benchmark Russell 1000 Value Total Return Index during the period, it strongly outperformed its peer group. Stock selection remains the top contributor to performance, as the Fund remains essentially sector neutral. We generated strong returns in the Financial, Information Technology, Utility and Industrials sectors. Our stock selection among Utilities was particularly strong. Stock selection in the Consumer Discretionary and Staples sectors detracted from performance.

Outlook ^-We like what we see on a number of key fronts. Strong earnings growth and good overall economic growth should bode well for the rest of the year and into 2007. Although interest rates and energy costs are a concern, the Fed seems ready to leave interest rates unchanged for now, while energy prices, a key cause of inflation concerns, appear to be moderating and could fall further as new supply comes on line. In addition, market valuations still appear relatively attractive. We feel the U.S. market could return double digits by the end of the year.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Quantitative Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	17.98%
Quantitative Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	17.98%
Russell 1000 Value Index^3,4,5	—	—	—	—	—	—	—	17.45%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Real Estate Equity Fund

Subadviser: T. Rowe Price Associates, Inc.
Portfolio Managers: David M. Lee

INVESTMENT OBJECTIVE & POLICIES ^-To seek to provide long-term capital growth through a combination of appreciation and current income by investing in real estate companies, including real estate investment trusts.

Sector Weighting*	% of Total

Financial	85.91
Consumer, Cyclical	1.15
Basic Materials	1.08

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in April 2006, the Real Estate Equity Fund returned +9.90%, underperforming the +10.05% return of the DJ Wilshire REIT Index.

Environment ^-In recent months, investors appear to have grown increasingly more risk-averse, wary of rising interest rates, heightened inflation fears, and the potential for slowing economic growth. Against this backdrop, the real estate sector managed to outperform the broader market, and some of the best-performing segments within real estate were industrials, office, and apartments.

The U.S. economy continued to show healthy growth, despite the continuing effects of the Federal Reserve’s restrictive monetary policy. Industrial stocks benefited from the steady GDP growth, and office stocks also performed well as non-farm payroll growth fueled demand for office space. This demand, reflected in positive net absorption, resulted in higher occupancies in several markets and increased the potential for higher rental rates.

Apartments also performed well during this period as the cost of home ownership increased with rising interest rates. In many cases, investors are assuming that the housing slowdown will lead to an increased demand for rental units, which in turn should lead to rising occupancy rates and higher rents for apartments. The rental expense component of the consumer price index has been increasing, demonstrating strength in this area.

Outlook ^-Our fundamental outlook remains optimistic as we expect continued job growth to have a beneficial impact on commercial real estate. However, recent slowing in the pace of job creation has emerged as another risk we are monitoring, as the impact of the Fed’s monetary tightening could slow the economy to the point that it negatively affects fundamental demand for our commercial real estate properties. Fortunately, job growth appears to remain sufficiently positive in our view, and we are optimistic that the Fed can begin to curtail its restrictive policies while maintaining a steady-growth economy.

We are projecting continued demand for commercial real estate space, and expect further gains in occupancy and market rental rates. We continue to believe that the greatest risk we face is the threat of compression in earnings multiples in the sector, since it could outweigh the fundamental benefits mentioned. That said, we cannot predict if this type of compression will occur, and we consider public market valuations to be in line with valuations in the private marketplace. In other words, we see no obvious disconnect between the valuations of the stocks in our portfolio and the valuations found in private real estate transactions. Continued demand through job growth, combined with reasonable supply, leaves us optimistic about the fundamentals that drive long-term performance in our sectors.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Real Estate Equity Class NAV (began 4/28/06)	—	—	—	—	—	—	—	9.90%
DJ Wilshire REIT Index^3,5,6	—	—	—	—	—	—	—	10.05%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Real Estate Equity Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 DJ Wilshire REIT Index is an unmanaged index consisting of actively traded real estate investment trusts.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Real Estate Securities Fund

Subadviser: Deutsche Asset Management
Portfolio Managers: John F. Robertson, John W. Vojticek, Jerry W. Ehlinger and Asad Kazim

INVESTMENT OBJECTIVE & POLICIES ^-To achieve a combination of long-term capital appreciation and current income, the Fund invests, under normal market conditions, at least 80% of net assets (plus any borrowings for investment purposes) in equity securities of real estate investment trusts (“REITS”) and real estate companies. Equity securities include common stock, preferred stock and securities convertible into common stock.

Sector Weighting*	% of Total

Financial	93.91
Consumer, Cyclical	2.33

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Real Estate Securities Fund returned +30.96%, underperforming the +31.40% return of the Morgan Stanley REIT Index.

Environment ^-The solid performance of REITs during the fiscal year was driven by privatization and merger activity occurring at premiums; continued strong demand for high dividend yields; stability of earnings; and positive U.S. economic views. The Fund underperformed the Morgan Stanley REIT Index this year due to slightly negative stock and sector selection. From a stock selection perspective, individual holdings in hotel, office, healthcare, mall, and specialty sectors performed particularly well on a relative basis, while holdings within retail, self storage, apartment, and industrial sectors served as a drag on the portfolio. From a sector perspective, the apartment, hotels, office, self storage, and industrial sectors outperformed the benchmark and the other property types during the year, while healthcare, retail, mall, and specialty s ectors lagged. As such, relative sector performance for the Fund was helped by an overweight position in the apartment and self storage sectors and underweight position in the specialty sector. However, an overweight position in the underperforming regional mall sector and underweight position in the outperforming industrial sector detracted from performance for the year.

Outlook ^-Demand for real estate remains high and capital flows into the sector remain strong. We believe private market pricing of commercial real estate will continue to drive performance in the public real estate sector. Also, private equity capital has been abundant and continues to provide a floor to overall real estate valuations. We are maintaining positions in the highest quality assets in the best fundamental markets and have a slight bias toward the larger capitalization stocks in the REIT universe at this time. Even as economic growth slows, real estate fundamentals remain strong and we expect this growth combined with demand for the asset class will drive REIT returns over the next 12 months.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Real Estate Securities Class 1 (began 10/15/05)	—	—	—	—	—	—	—	30.96%
Morgan Stanley REIT Index^3,4,5	—	—	—	—	—	—	—	31.40%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Morgan Stanley REIT Index is an unmanaged index consisting of the most actively traded real estate investment trusts.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Real Return Bond Fund

Subadviser: Pacific Investment Management Company
Portfolio Manager: John B. Brynjolfsson

INVESTMENT OBJECTIVE & POLICIES ^-To seek maximum real return, consistent with preservation of real capital and prudent investment management. The Fund seeks to achieve its objective by investing under normal circumstances, at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations.

Sector Weighting*	% of Total

Government	92.92
Mortgage Securities	3.87
Financial	0.33
Consumer, Cyclical	0.17
Communications	0.15
Basic Materials	0.11
Asset Backed Securities	0.07
Energy	0.06

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Real Return Bond Fund returned +2.32%, underperforming the +2.99% return of the Lehman Brothers Global Real U.S. TIPS Index.

Environment ^-For most of the period, the bond market was focused on the Federal Reserve’s tightening cycle. Market expectations of continued Fed tightening drove short-term rates higher and led to a significant flattening of the yield curve. The U.S. central bank raised the federal funds rate in quarter-point increments through June to 5.25% . In July, U.S. Treasury yields started to decline, based on evidence of a slowing U.S. economy. Treasury yields continued their descent in August on reports of a housing slowdown, weaker inflation and rising unemployment. The Fed kept rates unchanged in August after 17 consecutive rate hikes in two years. Ten-year real yields ended August at 2.26%, 0.29 percentage points higher for the year. The difference in yield between two- and 10-year TIPS increased from a 0.73 percentage point carry on Octobe r 14, 2005 to a 0.42 percentage point inversion by August 31, 2006.

Prudent diversification and active management protected the portfolio in a volatile market. The Fund benefited from tactical adjustments and holdings in non-Index securities, such as mortgages, corporate bonds and emerging markets bonds. Above-benchmark duration detracted from performance as interest rates rose. A flattening of the U.S. Treasury yield curve hurt the portfolio. Overall, TIPS outperformed nominal U.S. Treasuries due to strong inflation prints driven by rising energy prices. A small allocation to corporate bonds was positive as their relatively higher coupons offset the impact of rising interest rates. Exposure to mortgage-backed securities added value from coupon selection and yield advantage. Emerging market bonds helped performance as credit premiums narrowed.

Outlook ^-Global economic growth appears strong but vulnerable. Robust U.S. consumption, massive Chinese investment spending and positive developments in Japan and emerging economies produced growth over the last year. This expansion prompted tightening by central banks to contain mild but accelerating inflation. Major central banks are embarked on an uncertain path of interest rate hikes that could, if pursued too aggressively, derail the global expansion. Inflation expectations should ease and the nominal yield curve should revert to a positive slope, as markets anticipate Fed easing. Risk premiums and volatility should expand to more normal levels as central banks withdraw liquidity from markets.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Real Return Bond Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.27%
Real Return Bond Class NAV (began 10/15/05)	—	—	—	—	—	—	—	2.32%
Lehman Brothers Global Real U.S. TIPS Index^3,4,5	—	—	—	—	—	—	—	2.99%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Global Real U.S. TIPS Index is an unmanaged index that consists of Inflation-Protection securities issued by the U.S. Treasury.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Small Cap Fund

Subadviser: Independence Investment LLC
Portfolio Manager: Charles S. Glovsky

INVESTMENT OBJECTIVE & POLICIES ^-To seek maximum capital appreciation consistent with reasonable risk to principal. The Fund invests, under normal market conditions, at least 80% of its net assets in equity securities of small cap companies.

Sector Weighting*	% of Total

Consumer, Non-cyclical	15.92
Consumer, Cyclical	14.08
Industrial	11.68
Financial	9.98
Communications	8.76
Technology	7.15
Energy	6.96
Basic Materials	4.01
Utilities	1.26

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Small Cap Fund returned +3.16%, underperforming the +14.94% return of the Russell 2000 Index.

Environment ^-Market volatility and strong economic crosscurrents characterized the markets for the 10 months since this Fund was started. Overall, demand for small-cap stocks was strong, with the Russell 2000 Index up almost 15% for the period. Significant funds flowed into the small-cap sector earlier in the period, driving small-cap share prices higher. A large amount of those funds were invested in Exchange Traded Funds, which created higher demand for the illiquid, low-quality, speculative stocks in the Index. This made it difficult for active managers to outperform the Index as those poorer quality stocks drove the Index. Our portfolio, which is focused on high-quality stocks, tends to lag in that type of environment.

Also affecting performance was sector selection, which was slightly negative during the period, and stock selection, which accounted for most of the Fund’s relative underperformance. Among the stocks that contributed positively to performance were a digital sign manufacturer that continues to benefit from growing demand for digital billboards and a wire company benefiting from growth in commercial construction and new building regulation. In addition, both a GPS company that focuses on the commercial market and an off-price retailer that recently brought in new management reported strong quarters and added to the Fund’s performance. Stocks that hurt performance included a company that was under investigation by Spanish authorities and a coal producer that has suffered from higher labor costs and missed earnings several quarters in a row.

Outlook ^-We expect market conditions to remain fairly stable in the coming months. The spread of inflation from Energy and Commodity sectors to the broader economy continues to be a risk, but the containment of wage inflation due to global competition and technology serves as an important counterbalance. We expect economic growth to moderate to a more sustainable pace, which should also relieve some inflationary pressure. Small-cap relative valuations remain high, but growth appears more attractive than value. We will continue to seek companies with strong growth prospects that are underappreciated by the market. We have confidence that our disciplined strategy of bottom-up, fundamentally-driven stock picking will outperform over a full market cycle.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Small Cap Class 1 (began 10/15/05)	—	—	—	—	—	—	—	3.09%
Small Cap Class NAV (began 10/15/05)	—	—	—	—	—	—	—	3.16%
Russell 2000 Index^3,4,5	—	—	—	—	—	—	—	14.94%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 2000 Index is an unmanaged index composed of 2,000 U.S. small capitalization stocks.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Small Cap Index Fund

Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES ^-To seek to approximate the aggregate total return of a small cap U.S. domestic equity market index. Invests, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in (a) the common stocks that are included in the Russell 2000 Index and (b) securities (which may or may not be included in the Russell 2000 Index) that MFC Global (U.S.A.) believes as a group will behave in a manner similar to the index.

Sector Weighting*	% of Total

Financial	21.30
Consumer, Non-cyclical	18.50
Consumer, Cyclical	13.04
Industrial	12.59
Technology	9.54
Communications	9.26
Energy	5.17
Basic Materials	3.45
Utilities	2.92
Government	2.63

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Small Cap Index Fund returned +13.69%, underperforming the +14.51% return of the Russell 2000 Index.

For the year, Materials & Processing and Other were the best performing sectors, returning 19.0% and 17.7%, respectively; Other Energy and Consumer Discretionary were the worst performers, returning 2.2% and 2.6%, respectively.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Small Cap Index Fund Class NAV (began 10/29/05)	—	—	—	—	—	—	—	13.69%
Russell 2000 Index^3,5,6	—	—	—	—	—	—	—	14.51%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Small Cap Index Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Russell 2000 Index is an unmanaged index composed of 2,000 U.S. small capitalization stocks.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Small Cap Opportunities Fund

Subadviser: Munder Capital Management
Portfolio Managers: Robert E. Crosby, Julie R. Hollinshead and John P. Richardson

INVESTMENT OBJECTIVE & POLICIES ^-To achieve long-term capital appreciation by investing, under normal circumstances, at least 80% of its net assets in smaller-capitalization companies that the managers believe are undervalued but have stable or improving earnings records and sound finances. Small-capitalization companies generally have a market capitalization below $1.5 billion at the time of purchase.

Sector Weighting*	% of Total

Financial	24.56
Industrial	14.19
Consumer, Cyclical	14.16
Energy	6.69
Consumer, Non-cyclical	4.81
Technology	4.20
Communications	2.61
Basic Materials	2.37
Utilities	0.93

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Small Cap Opportunities Fund returned +9.09%, underperforming the +18.63% return of the Russell 2000 Value Index.

Environment ^-The stock market rallied during the last two months of 2005, reflecting increased consumer confidence and continued good earnings growth, and the Fund participated in this rebound. Good stock selection in the Financial, Industrials, Consumer Discretionary and Utilities sectors offset weak stock selection in Information Technology.

The portfolio had good absolute returns for the first quarter of 2006, but lagged the strong performance of the Russell 2000 Value Index. The portfolio’s focus is driven by stock selection, with an emphasis on stocks with high profitability levels and below-average valuations. Unfortunately, these characteristics were not rewarded during the first quarter of the year, as more volatile stocks with low profitability and a lack of earnings were the top performers. During the second quarter, the portfolio bettered its benchmark. The period was a volatile one for small-cap stocks, with leadership changing as small-cap stocks corrected following several quarters of strong relative performance. For July and August, the largest detractors to relative performance were in the Industrials, Information Technology and Consumer Discretionary sectors. Building products, auto parts & equipment and Internet software & services stocks were the main laggards.

Overall, most of the Fund’s relative underperformance from November 2005 through August 2006 was due to the decline in our positions in home-builders and their suppliers. While we anticipated some negative investor sentiment towards these stocks, we were surprised by how quickly and dramatically performance of these stocks shifted.

The Fund remains overweighted in homebuilder and homebuilder supplier stocks. However, our exposure is smaller than six months ago. These companies are still executing well, but appear to be suffering from continued negative news flow and investor sentiment. We believe that over the next six months stock prices will better reflect the solid fundamentals of these stocks.

While we remain overweight, we have reduced reduced our exposure in mortgage companies and mortgage REITs (real estate investment trusts). Most of our mortgage REIT holdings are commercial mortgage REITs, and are not exposed to the residential side. We also reduced our residential mortgage REIT exposure, and we believe we own the best companies in the group.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Small Cap Opportunities Class 1 (began 10/15/05)	—	—	—	—	—	—	—	9.04%
Small Cap Opportunities Class NAV (began 10/15/05)	—	—	—	—	—	—	—	9.09%
Russell 2000 Value Index^3,4,5	—	—	—	—	—	—	—	18.63%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Small Company Fund

Subadviser: American Century Investment Management, Inc.
Portfolio Managers: Matti Von Turk, William Martin and Thomas Vaiana

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term capital growth by investing primarily in the common stock of U.S. small companies. The Fund manages risk by broadly diversifying its investments based on the S&P SmallCap 600 Index.

Sector Weighting*	% of Total

Consumer, Non-cyclical	16.01
Consumer, Cyclical	14.03
Industrial	12.64
Financial	12.35
Technology	8.34
Basic Materials	5.24
Energy	5.01
Communications	3.49
Utilities	2.51

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Small Company Fund returned +1.85%, underperforming the +6.20% return of the S&P SmallCap 600 Index.

Environment ^-The U.S. stock market rallied during the reporting period. Although rising commodity prices and higher interest rates weighed on investor confidence, stocks enjoyed a boost from the healthy U.S. economy and continued strength in corporate earnings growth. Small-cap stocks posted solid gains that were in line with the broader market. Within the portfolio, the most economically-sensitive sectors — Energy, Industrials and Utilities — contributed the most to absolute performance. Information Technology stocks and consumer-oriented issues were the only segments of the portfolio to decline. The Fund underperformed its benchmark index because of disappointing stock selection in every market sector, most notably Information Technology and Financials. Stock choices among electronic equipment manufacturers and software makers de tracted the most in the Technology sector, while real estate investment trusts and commercial banks weighed on results in the Financial sector. On the positive side, stock selection proved more favorable in the Telecommunications Services sector, particularly among wireless providers, and among oil producers in the Energy sector.

Outlook ^-As always, we will remain true to our disciplined investment approach, building a portfolio of smaller companies that we believe provides an optimal balance between risk and expected return.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Small Company Class 1 (began 10/15/05)	—	—	—	—	—	—	—	1.78%
Small Company Class NAV (began 10/15/05)	—	—	—	—	—	—	—	1.85%
Standard & Poors Small Cap 600 Index^3,4,5	—	—	—	—	—	—	—	6.20%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Standard & Poors Small Cap 600 Index is an unmanaged index composed of 600 U.S. small-sized companies.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Small Company Growth Fund

Subadviser: AIM Capital Management, Inc.
Portfolio Managers: Juliet S. Ellis

INVESTMENT OBJECTIVE & POLICIES ^-To seek long-term growth of capital. To pursue this goal, the Fund normally invests at least 80% of its assets in securities of small-capitalization companies. The Fund considers a company to be a small-capitalization company if it has a market capitalization, at the time of purchase, no larger than the largest capitalized company included in the Russell 2000 Index during the most recent 11-month period (based on month-end data) plus the most recent data during the current month.

Sector Weighting*	% of Total

Consumer, Non-cyclical	23.70
Technology	17.32
Industrial	15.30
Consumer, Cyclical	13.84
Energy	9.31
Financial	8.71
Communications	8.20
Basic Materials	0.89
Utilities	0.78

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Small Company Growth Fund returned +10.90%, outperforming the +9.09% return of the Russell 2000 Growth Index.

Environment ^-Despite widespread concern about the impact of rising short-term interest rates, high energy prices, a housing bubble and the long-term economic effects of the Gulf Coast hurricanes of 2005, the equity markets generated positive returns. Under its new chairman Ben Bernanke, the Federal Reserve continued raising the federal funds rate, to 5.25%; however, in August, the Fed paused for the first time in 2 years. Positive performance in the Russell 2000 Growth Index was broad-based, with the highest returns in the Utilities, Consumer Staples and Materials sectors.

The Fund outperformed the benchmark in Industrials, Consumer Discretionary and Energy. Outperformance in Industrials was driven by strong stock selection across several industries that benefited from global economic expansion. In the Consumer Discretionary sector, strong stock selection and an underweight position helped, as many consumer-related stocks struggled due to concerns about the impact of higher interest rates and energy prices. However, some holdings held up in this environment, including those in household durables and hotels/restaurants/leisure. The Energy sector experienced wide swings, but finished the period with gains. The Fund benefited from strong selection in energy equipment and services stocks.

The Fund underperformed its benchmark index in the Information Technology and Health Care sectors. In Information Technology, the portfolio had poor stock selection in communications equipment, computers and peripherals, and IT services stocks. In Health Care, underperformance was due largely to poor selection in biotechnology stocks and an overweight in health care technology stocks, a weak performing area.

Outlook ^-We believe that growth stocks are poised to outperform. Many of them continue to trade at reasonable valuations relative to value stocks, as well as to expected growth rates, and the current economic environment is favorable for the stock prices of companies that can deliver above-average earnings growth. This environment has created an opportunity to buy companies with superior growth prospects at unusually modest prices.

The fund is positioned to benefit from global economic growth, although we maintain significant positions in relatively defensive growth stocks as the economic cycle shows signs of maturing.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Small Company Growth Class NAV (began 10/29/05)	—	—	—	—	—	—	—	10.90%
Russell 2000 Growth Index^3,4,5	—	—	—	—	—	—	—	9.09%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Small Company Value Fund

Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Preston G. Athey

INVESTMENT OBJECTIVE & POLICIES ^-To seek long-term growth of capital by investing at least 80% of its net assets in companies with market capitalizations that do not exceed the maximum market capitalization of any security in the Russell 2000 Index at the time of purchase. Portfolio securities are also selected by what T. Rowe Price believes to be undervalued companies that have good prospects for capital appreciation.

Sector Weighting*	% of Total

Industrial	19.07
Financial	16.43
Consumer, Non-cyclical	10.48
Consumer, Cyclical	8.51
Energy	7.65
Basic Materials	6.67
Technology	3.46
Utilities	2.95
Communications	2.65
Funds	0.57

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Small Company Value Fund returned +12.44%, underperforming the +18.63% return of the Russell 2000 Value Index.

Environment ^-The Fund’s significant underweight in financials, combined with stock selection, helped relative performance as the sector was pressured by rising interest rates. Stock selection in real estate and commercial banks was the primary reason for outperformance.

Good stock selection in health care, particularly in biotechnology and health care equipment and supplies, also helped relative returns. We have marginal overweight positions in every health care industry except pharmaceuticals (where we currently have no holdings) and biotechnology (where we maintain a large overweight). While we are only slightly overweight in the health care sector as a whole, most of this overweight is concentrated in the biotechnology industry, which was helpful during the period.

Stock selection in industrials and business services was the biggest detractor from relative performance by some margin as many strong performers in recent years pulled back in response to signs of slowing economic growth. Machinery holding JLG Industries, a maker of aerial lifts and construction equipment, was a particularly large detractor. Shares were sold off despite the company’s announcement of earnings that beat estimates and offering higher guidance for future results. Stock selection in air freight and logistics also hurt. UTi Worldwide, a provider of air and ocean freight and logistics services, lowered guidance for the year due to a large information technology project and increased staffing costs and expenses related to a recent acquisition.

Stock selection in materials also detracted, although this was mitigated by the positive contribution of our large overweight position. Holdings in construction materials companies detracted due to the slowdown in the residential housing market. Florida Rock Industries, a cement and concrete company, announced earnings that came in below estimates and suffered from concern that the housing slowdown will be particularly steep in its home state. We remain overweight in all industries within materials as the sector is poised to benefit from the strong global economy.

Outlook ^-While we expect investor sentiment to remain negative for some time toward home-builders, restaurants, and other areas tied to the consumer, we are finding what we perceive to be bargains in these areas. In the meantime, we are optimistic that the longer-term favorable performance of our industrials and business services, energy, and materials holdings will continue as the capital goods cycle progresses and companies expand production capacity.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Small Company Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	12.41%
Small Company Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	12.44%
Russell 2000 Value Index^3,5,6	—	—	—	—	—	—	—	18.63%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Small Company Value expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Special Value Fund

Subadviser: Salomon Brothers Asset Management Inc.
Portfolio Manager: Peter J. Hable

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve long-term growth of capital by investing in the common stock and other equity securities of smaller-capitalized U.S. companies believed to be undervalued.

Sector Weighting*	% of Total

Financial	17.72
Industrial	17.04
Consumer, Cyclical	8.49
Consumer, Non-cyclical	8.43
Funds	4.62
Technology	4.23
Energy	3.66
Communications	2.86
Basic Materials	1.09
Utilities	0.98

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Special Value Fund returned +10.06%, underperforming the +18.63% return of the Russell 2000 Value Index.

Environment ^-The market for small-capitalization stocks this year was characterized by speculative performance from companies with the poorest balance sheets and no earnings. This was concentrated in three sectors: Technology, Basic Materials and Health Care. Given our focus on companies with high returns on invested capital, healthy balance sheets and strong free cash flow, this speculative rally left the Fund trailing its benchmark in 2006.

With the twin taxes of rising short-term interest rates and higher energy prices slowing the economy, we positioned the portfolio defensively. The Fund was underweighted in Technology, Consumer Discretionary and Basic Materials stocks, which tend to suffer the most as the economy slows. Except for the speculative move in poor-quality Technology and Basic Materials companies mentioned above, this positioning served the Fund well.

The portfolio’s five largest sectors as of August 31, 2006, were Financials (31.23%), Industrials (25.71%), Consumer Discretionary (12.86%), Information Technology (12.40%) and Health Care (6.70%) .

Outlook ^-We have had a defensive stance with our Financials sector weighting. Our concern with Financials was driven by a flatter yield curve compressing net interest margins and lowering earnings for banks, increased real estate loan exposure with decreased loan loss reserves in a speculative real estate market and rich valuations for small bank stocks in general. Currently, there is an unprecedented $1 trillion-dollar inventory of unsold homes. That leads us to believe we are entering the difficult part of the credit cycle. In time, the Federal Reserve will ride to the rescue, but it may be after many small banks experience a hard landing.

The outperformance of small stocks relative to large stocks over the last six years has eliminated the valuation gap that existed between capitalizations and it has left most small-cap stocks trading at a premium. Selectively, attractive small-cap valuations have appeared as rising short-term interest rates and rising energy prices slowed the economy. As better valuations present themselves, we will move away from our defensive stance.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Special Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	9.91%
Special Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	10.06%
Russell 2000 Value Index^3,4,5	—	—	—	—	—	—	—	18.63%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Spectrum Income Fund

Subadviser: T. Rowe Price Associates, Inc.
Portfolio Managers: Edmund N. Notzon, III

INVESTMENT OBJECTIVE & POLICIES ^-The Spectrum Income Fund seeks a high level of current income with moderate share price fluctuation. The Fund normally invests in a diversified portfolio of domestic and international government, corporate and mortgage-backed bonds. The Fund will also seek equity income through investments in dividend-paying stocks.

Sector Weighting*	% of Total

Mortgage Securities	22.22
Government	17.75
Financial	8.31
Communications	7.71
Consumer, Non-cyclical	5.62
Energy	4.71
Industrial	4.51
Consumer, Cyclical	4.16
Utilities	2.81
Asset Backed Securities	2.04

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Spectrum Income Fund returned +5.47%, outperforming the +3.05% return of the LB Aggregate Bond Index.

Environment ^-All major segments of the fixed-income markets posted positive total returns for the period beginning October 31, 2005 and ending August 31, 2006, despite a rise in the general level of interest rates. The period began with the Federal Reserve raising the targeted fed funds rate an expected 0.25% to 4.00% on November 1. Five more rate hikes would follow, causing a corresponding rise in short-term rates. The three-month Treasury bill ended the period with a yield of 5.04%, according to Bloomberg, compared to a 3.88% yield on October 31. Long-term yields rose at a more-modest pace on investor confidence that the Fed would keep inflation in check. The differing yield increase between the short-term and long-term parts of the Treasury curve resulted in a rare yield curve inversion in December 2005, with two-year Treasuries yielding more than 10-year Treasuries. The yield curve flattened in early 2006 and then inverted again in the summer.

The fixed-income markets rallied strongly in August, as the Federal Reserve held the targeted fed funds rate steady after its August 8th meeting amid evidence that economic growth was moderating. The Fed’s decision to pause in its tightening campaign after seventeen consecutive quarter-point rate increases indicates that the regime of Fed Chairman Ben Bernanke is willing to set policy based on the expectation of continued inflationary pressures subsiding in the future due to the lagged cumulative effect of past monetary policy actions. The rally pushed the 10-year Treasury yield to 4.73%, its lowest level since March 2006.

The Lehman Brothers U.S. Aggregate Bond Index returned 3.59% for the period, aided by strong returns for mortgage-backed securities. Among non-index markets, both high-yield bonds and emerging-market bonds outperformed the Lehman Aggregate sectors, though investors’ risk tolerance varied sharply during the period, as rising geopolitical risk and rate uncertainty caused a sell-off of riskier assets in the latter half of the second quarter. By July, however, the increasing probability of a Fed pause led to a softening of the previous risk-averse sentiment.

Outlook ^-The economic expansion has continued at a somewhat milder pace and is likely to be restrained through the second half of 2006. We believe the Fund’s broad diversification will serve our shareholders well in the coming months.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE^1,4	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Spectrum Income Class NAV (began 10/29/05)	—	—	—	—	—	—	—	5.47%
Lehman Brothers Aggregate Bond Index^3,5,6	—	—	—	—	—	—	—	3.05%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Since inception, a portion of the Spectrum Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5 Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

6 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Strategic Bond Fund

Subadviser: Western Asset Management Company
Portfolio Managers: Ken Leech, Steve Walsh, Keith Gardner, Matt Duda and Mike Buchanon

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve a high level of total return, consistent with preservation of capital, by investing the Fund’s assets in five segments of the fixed-income market: (i) U.S. government obligations, (ii) investment-grade domestic corporate fixed-income securities, (iii) high yield corporate fixed-income securities, (iv) mortgage-backed and asset-backed securities and (v) investment-grade and high yield international fixed-income securities.

Sector Weighting*	% of Total

Mortgage Securities	30.95
Government	11.50
Financial	10.04
Asset Backed Securities	7.76
Energy	4.77
Communications	4.32
Utilities	4.10
Industrial	4.04
Consumer, Cyclical	2.50
Consumer, Non-cyclical	1.59

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Strategic Bond Fund returned +4.22%, outperforming the +3.37% return of the LB Aggregate Bond Index.

The economy bounced back strongly from its weak showing in the fourth quarter of 2005, with growth of more than 5% in the first quarter, but slowed to 2.9% growth in the second quarter. Headline inflation rose to the 3.5 –4.5% range, core inflation drifted higher to the 2.5 –3.0% range. Inflation concerns were fueled by gains in gold, industrial commodity and energy prices, and a decline in the dollar against most major currencies. The economy displayed some very solid fundamentals, as corporate profits exceeded expectations, and federal and state revenues registered some of the strongest gains in real terms (adjusting for inflation) in history.

Nevertheless, the housing market showed signs of a spreading slowdown, which gave rise to the widely held perception that the overall economy would likely slow enough to reduce inflation pressures and allow the Fed to end its tightening cycle.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Strategic Bond Class 1 (began 10/15/05)	—	—	—	—	—	—	—	4.18%
Strategic Bond Class NAV (began 10/15/05)	—	—	—	—	—	—	—	4.22%
Lehman Brothers Aggregate Bond Index^3,4,5	—	—	—	—	—	—	—	3.37%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Strategic Income Fund

Subadviser: Sovereign Asset Management LLC
Portfolio Managers: Barry Evans, Daniel Samuel Janis and John Iles

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks high current income through investing, under normal market conditions, primarily in foreign government and corporate debt securities from developed and emerging markets; U.S. Government and agency securities; and U.S. high yield bonds.

Sector Weighting*	% of Total

Government	49.51
Financial	5.39
Funds	5.26
Mortgage Securities	4.43
Communications	2.86
Energy	2.78
Consumer, Cyclical	2.76
Basic Materials	2.23
Consumer, Non-cyclical	2.18
Industrial	2.14

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Strategic Income Fund returned +1.37%, underperforming the +3.01% return of the LB Aggregate Bond Index.

Environment ^-U.S. dollar-bloc government bonds generally posted gains during the period amid soft economic data and a growing sense that the Federal Reserve would pause in its more than two-year-long campaign to raise interest rates. European government bonds also finished higher, in part due to a reinforced sense that the Fed would pause and also to reports suggesting a slowing economy in Europe. Elsewhere, continued strong investor demand helped buoy high-yield bonds.

Since the Fund’s inception, we have worked to fully invest the assets based on our tri-sector model, targeting investments in the U.S. government, foreign and high-yield bond sectors. With the Fed continuing on a tightening path and credit spreads near historic lows, we maintained a lower-than-benchmark duration in our U.S. government allocation, and kept a reduced exposure to the U.S. high-yield sector. Bolstered by our belief that the U.S. dollar is in the midst of a multi-year decline relative to the major global currencies, we sought to add value to the portfolio via our exposure to the euro, the Canadian dollar and, to a lesser extent, the Japanese yen. We also concentrated on high-yield names with predictable cash flow that we believe can outperform in a variety of economic conditions, particularly those in the gaming, media and packaging industries.

Outlook ^-We’re comfortable with our emphasis on non-dollar denominated foreign government bonds, given our negative view of the U.S. dollar. We believe the American trade and current account deficits will remain large, which likely will prompt a resumption in a multi-year cyclical decline in the U.S. dollar. We are concerned that U.S. economic growth may be weaker going forward. Prior interest rate hikes, a weakening housing market and high energy prices are likely to put the brakes on the global economy at large. With yield spreads close to historic lows, we plan to maintain an underweight in high-yield and emerging market bonds. We plan to opportunistically add to our high-yield and emerging market holdings, but only when valuations warrant.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Strategic Income Class NAV (began 4/28/06)	—	—	—	—	—	—	—	1.37%
Lehman Brothers Aggregate Bond Index^3,4,5	—	—	—	—	—	—	—	3.01%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Strategic Value Fund

Subadviser: MFS Investment Management
Portfolio Managers: Kenneth J. Enright and Alan Langsner

INVESTMENT OBJECTIVE & POLICIES ^-To seek capital appreciation. The Fund invests, under normal market conditions, at least 65% of its net assets in common stocks and related securities, such as preferred stock, convertible securities and depositary receipts, of companies which MFS believes are undervalued in the market relative to their long term potential.

Sector Weighting*	% of Total

Communications	20.91
Financial	18.23
Consumer, Non-cyclical	11.18
Industrial	10.94
Technology	8.06
Energy	8.04
Consumer, Cyclical	7.14
Utilities	2.96
Basic Materials	1.39

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Strategic Value Fund returned +6.52%, underperforming the +17.45% return of the Russell 1000 Value Index.

Environment ^-Stock selection in the Technology, Utilities & Communications, Basic Materials and Industrial Goods & Services sectors held back performance relative to the Russell 1000 Value Index. In Technology, a telecommunications equipment maker, a security software company and a computer manufacturer detracted from relative results. In the Utilities & Communications sector, an independent power producer and a telecommunications service provider were a drag on performance. Within the Basic Materials sector, a package manufacturer and a newsprint maker hindered results. An industrial conglomerate was also among the Fund’s top relative detractors. Stocks in other sectors that hurt results included a health services provider and a home improvement products company.

Relative to the Fund’s benchmark, the Leisure sector was the top contributing sector to relative performance, bolstered by the Fund’s avoidance of a poor-performing media giant. Stock selection in the Financial Services sector also aided relative returns. Within this sector, holdings in several banking firms boosted results. Elsewhere, the fund’s positions in a pharmaceutical company, an office supply retailer, a consumer electronics retailer, an enterprise software company, and an electric power distributor helped results.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Strategic Value Class 1 (began 10/15/05)	—	—	—	—	—	—	—	6.47%
Strategic Value Class NAV (began 10/15/05)	—	—	—	—	—	—	—	6.52%
Russell 1000 Value Index^3,4,5	—	—	—	—	—	—	—	17.45%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Total Return Fund

Subadviser: Pacific Investment Management Company
Portfolio Manager: William H. Gross

INVESTMENT OBJECTIVE & POLICIES ^-To seek to achieve maximum total return, consistent with preservation of capital and prudent investment management by investing primarily in a diversified portfolio of fixed income securities of varying maturities. The average portfolio duration will normally vary within a 3- to 6-year time frame based on PIMCO’s forecast for interest rates.

Sector Weighting*	% of Total

Mortgage Securities	42.44
Government	18.01
Financial	12.53
Asset Backed Securities	4.19
Communications	1.39
Consumer, Cyclical	0.68
Consumer, Non-cyclical	0.29
Utilities	0.24
Energy	0.21
Technology	0.17

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Total Return Fund returned +3.18%, underperforming the +3.37% return of the LB Aggregate Bond Index.

Environment ^-For most of the period, the bond market was focused on the Federal Reserve’s tightening cycle. Market expectations of continued Fed tightening drove short-term rates higher and led to a significant flattening of the yield curve. The U.S. central bank raised the federal funds rate in quarter-point increments through June to 5.25% . In July, U.S. Treasury yields started to decline, based on evidence the U.S. economy was beginning to slow. Treasury yields continued their descent in August on reports of a housing slowdown, weaker inflation and rising unemployment. The Fed kept rates unchanged in August after 17 consecutive rate hikes since the tightening cycle began in June 2004.

The benchmark 10-year Treasury yield ended the period at 4.73%, 0.52% lower than the federal funds rate.

Broad diversification helped returns during a challenging environment. Above-index duration detracted from performance for most of the year, as interest rates rose. However, late in the period, above-index duration was a positive as interest rates fell due to weaker economic data. An overweight to shorter maturities hurt returns early in the period, but was a positive in July and August. An overweight to mortgages and coupon selection helped performance — and an underweight to corporate bonds hurt — as both sectors outperformed like-duration Treasuries. Exposure to emerging market bonds aided performance as credit premiums narrowed. Municipal securities helped returns, as they usually outperform when rates rise.

Outlook ^-Global economic growth appears strong but vulnerable. Robust U.S. consumption, massive Chinese investment spending and positive developments in Japan and emerging economies produced growth over the last year. This expansion prompted tightening by central banks to contain mild but accelerating inflation. Major central banks are embarked on an uncertain path of interest rate hikes that could, if pursued too aggressively, derail the global expansion. Inflation expectations should ease and the nominal yield curve should revert to a positive slope, as markets begin to anticipate Fed easing. Risk premiums and volatility should expand to more normal levels as central banks withdraw liquidity from markets.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Total Return Class 1 (began 10/15/05)	—	—	—	—	—	—	—	3.14%
Total Return Class NAV (began 10/15/05)	—	—	—	—	—	—	—	3.18%
Lehman Brothers Aggregate Bond Index^3,4,5	—	—	—	—	—	—	—	3.37%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

U.S. Global Leaders Growth Fund

Subadviser: Sustainable Growth Advisers, LP
Portfolio Managers: George P. Fraise, Gordon M. Marchand and Robert L. Rohn

INVESTMENT OBJECTIVE & POLICIES ^-The Fund seeks long-term growth of capital. To pursue this goal, the Fund normally invests at least 80% of its assets in common stocks that managers regard as “U.S. Global Leaders.” The managers consider U.S. Global Leaders to typically exhibit the following characteristics: pricing flexibility, recurring revenues and global reach.

Sector Weighting*	% of Total

Consumer, Non-cyclical	43.49
Technology	17.19
Consumer, Cyclical	16.18
Industrial	7.75
Financial	7.37
Communications	6.31

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the U.S. Global Leaders Growth Fund returned –0.88%, underperforming the +11.77% return of the S&P 500 Index.

Environment ^-U.S. stocks rallied in the first half of 2006. A healthy economy and strong profit growth provided support for the market, but gains were muted by a sell-off late in the six-month period caused by higher inflation and rising interest rates. In the end, the major stock indexes posted gains of about 3%. Small-cap stocks led the market’s advance, while value shares outperformed growth-oriented issues.

The first half of 2006 was a challenging period for the Fund, which lagged the S&P 500 Index and its Morningstar peer group by a wide margin. The high-quality, large-cap growth stocks in which the portfolio invests remained out of favor: small-cap stocks outpaced large-company issues, value stocks continued to outperform growth, and lower-quality stocks posted better returns than high-quality names.

Sector allocation was also a drag on performance as investors continued to favor deep cyclical sectors, such as Energy and Utilities, which we avoid because they do not meet our investment criteria. In contrast, growth-oriented sectors that are well represented in the portfolio, such as Health Care and Information Technology, were the only market sectors to decline. The best performers in the portfolio were consumer-oriented stocks.

Outlook ^-Although the Fund’s recent performance has been frustrating, the long-term outlook is promising. We face an unprecedented opportunity in many high-quality, sustainable-growth companies. We believe the portfolio looks more attractive now than at any other time in its history.

If the Fund was a public company that owned each of the individual businesses, it would have more than a decade of double-digit earnings growth (twice the overall market’s growth rate), a free cash flow yield of 5%, and a lower valuation than the broader market on a cash basis. That is why we are extremely comfortable with the portfolio and very excited about its future prospects.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

U.S. Global Leaders Growth Class 1 (began 10/15/05)	—	—	—	—	—	—	—	-0.97%
U.S. Global Leaders Growth Class NAV (began 10/15/05)	—	—	—	—	—	—	—	-0.88%
Standard & Poors 500 Index^3,4,5	—	—	—	—	—	—	—	11.77%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Standard & Poors 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

U.S. Government Securities Fund

Subadviser: Western Asset Management Company
Portfolio Manager: Ken Leech, Steve Walsh, Mark Lindbloom, Ron Mass and Fred Marki

INVESTMENT OBJECTIVE & POLICIES ^-To achieve a high level of current income consistent with the preservation of capital and maintenance of liquidity. The Fund invests a substantial portion of its assets in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or instrumentalities and derivative securities.

Sector Weighting*	% of Total

Mortgage Securities	60.97
Asset Backed Securities	12.45
Government	11.92

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the U.S. Government Securities Fund returned +2.91%, outperforming the +2.64% return of the Citigroup 1-10 Year Treasury Bond Index.

The economy bounced back strongly from its weak showing in the fourth quarter of 2005, with growth of more than 5% in the first quarter, but slowed to 2.9% growth in the second quarter. Headline inflation rose to the 3.5 –4.5% range, core inflation drifted higher to the 2.5 –3.0% range. Inflation concerns were fueled by gains in gold, industrial commodity and energy prices, and a decline in the dollar against most major currencies. The economy displayed some very solid fundamentals, as corporate profits exceeded expectations, and federal and state revenues registered some of the strongest gains in real terms (adjusting for inflation) in history.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

U.S. Government Securities Class 1 (began 10/15/05)	—	—	—	—	—	—	—	2.87%
U.S. Government Securities Class NAV (began 10/15/05)	—	—	—	—	—	—	—	2.91%
Citigroup 1-10 Year Treasury Bond Index^3,4,5	—	—	—	—	—	—	—	2.64%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since April 28, 2006.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Citigroup 1-10 Year Treasury Bond Index is a broad measure of the performance of the short-term and medium-term U.S. Treasury securities.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

U.S. High Yield Bond Fund

Subadviser: Wells Capital Management, Inc.
Portfolio Managers: Roger Wittlin, Niklas Nordonfelt, Chris Lee, Sean Lynch, and Phil Susser

INVESTMENT OBJECTIVE & POLICIES ^-To seek total return with a high level of current income. The Fund invests, under normal market conditions, primarily in below investment-grade debt securities (sometimes referred to as “junk bonds” or high yield securities). The Fund also invests in corporate debt securities and may buy preferred and other convertible securities and bank loans.

Sector Weighting*	% of Total

Communications	22.16
Consumer, Cyclical	13.48
Financial	11.94
Consumer, Non-cyclical	11.38
Energy	7.92
Industrial	6.08
Technology	3.56
Basic Materials	2.75
Utilities	1.48

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the U.S. High Yield Bond Fund returned +6.58%, outperforming the +5.82% return of the Merrill Lynch US High Yield Master II Constrained Index.

Environment ^-Due to the effects of the twin hurricanes and spiking energy prices, it became evident to investors late last year that the economy was slowing. Longer-term Treasury yields moved downward until mid-January of 2006. The slowdown proved temporary, as the economy rebounded during the first quarter of 2006, sending Treasury yields upward, peaking in June. During this time, the Federal Reserve continued its tightening regime, lifting the federal funds rate from 4.00% in November 2005 to the current rate of 5.25% . High-yield spreads were relatively stable and historically low during the period. The credit environment has remained healthy, with lower quality bonds significantly outperforming higher quality bonds so far in 2006. With the Fed holding rates steady at its August meeting amid indications of a slowing housing market, Treasu ry yields have fallen by a half percent since early July.

Outlook ^-While the economy remains strong, the Fed is entering a difficult period. Growth appears to be slowing, led by a weaker housing market and lower consumer spending, yet wage-price pressures and core price inflation continue rising. The challenge for the Fed will be to combat the inflationary pressures while not squeezing liquidity and thereby exacerbating an economic slowdown. We feel the default environment will continue to be supportive of credit spreads, as corporate fundamentals remain positive. Because spreads are especially tight by historical measures, we will continue to lower risk by moving up in quality and in the capital structure.

We will continue to be mindful of opportunities that are likely to present themselves should segments of the market weaken beyond their fundamentals. The new issue market, particularly in high yield bonds, is likely to affect spreads. Should the market see large, sponsor-driven deals, such as leveraged buyouts (LBOs), high yield spreads are likely to widen. As part of our strategy and credit diligence, we will continue to be skeptical of sponsor-driven deals, whether they are LBO-related or motivated to pay outsized dividends. In addition, we are keenly monitoring the increasing amount of “covenant-lite” loans coming to market.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ending August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

U.S. High Yield Bond Class Class 1 (began 10/15/05)	—	—	—	—	—	—	—	6.55%
U.S. High Yield Bond Class Class NAV (began 10/15/05)	—	—	—	—	—	—	—	6.58%
Merrill Lynch U.S. High Yield Master II Constrained Index^3,4,5	—	—	—	—	—	—	—	5.82%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 15, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index composed of U.S. currency high-yield bonds issued by U.S. and non-U.S. issuers.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

U.S. Multi Sector Fund

Subadviser: Grantham, Mayo, Van Otterloo & Co. LLC
Portfolio Managers: Robert Soucy, Sam Wilderman and Donna Murphy

INVESTMENT OBJECTIVE & POLICIES ^-To seek long term capital appreciation. The Fund seeks total return greater than its benchmark. To pursue this goal, the Fund normally invests in securities in the Wilshire 5000 Stock Index, an independently maintained and published equity securities (with readily available price data) of issuers with headquarters in the U.S. The Fund normally invests at least 80% of its assets in investments tied economically to the U.S.

Sector Weighting*	% of Total

Consumer, Non-cyclical	29.13
Consumer, Cyclical	19.02
Financial	14.50
Industrial	9.00
Technology	6.58
Communications	5.97
Energy	3.31
Mortgage Securities	2.18
Basic Materials	1.09
Utilities	0.24

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the GMO U.S. Multi Sector Fund returned +4.25%, underperforming the +10.49% return of the Russell 3000 Index.

Environment ^-Early in the period, the U.S. witnessed a market that managed to stay afloat in spite of additional federal funds rate increases, rising health care and energy costs, and mixed reports pertaining to economic growth. During the first quarter of 2006, U.S. markets produced modest gains amid an array of uncertain economic factors. Despite another hike in the federal funds rate and the upsurge in energy and construction costs, major market indices rose during the quarter. This positive performance completely reversed itself in the second quarter, due in large part to the malaise among Technology stocks. During its roughly 10-month period since its inception, the portfolio was positioned to favor higher quality companies based on their valuation characteristics. Quality equities traditionally have traded at an 18% premium to the mark et, and now trade at a discount, which makes them the cheapest stocks relative to the market. In this environment, the portfolio favored several higher quality companies, all of which exceeded market returns. Health Care was an attractive sector to find high-quality, undervalued securities, while the Fund’s selection among retail stocks hindered overall performance.

Outlook ^-The majority of U.S. equity market indices posted negative returns in the second quarter of 2006, with the exception of the Dow Jones Industrial Average, which rose 0.9% . The spread between high- and low-quality stocks was considerable, although both types were down during the quarter. Although lower quality stocks once again outpaced high-quality stocks, we continue to believe that a tilt towards higher quality stocks is worthwhile for U.S. investors, as these stocks have remained cheap relative to their historical averages. Our market outlook for 2006 is for a moderate, yet sustained bear market. Investors are encouraged to focus on quality and avoid risk when possible. The portfolio remains overweight high-quality companies and defensive stocks, while maintaining an underweight position in U.S. small-/mid-cap stocks, as their va luations have remained unattractive throughout the year.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

U.S. Multi Sector Class NAV (began 10/29/05)	—	—	—	—	—	—	—	4.25%
Russell 3000 Index^3,4,5	—	—	—	—	—	—	—	10.49%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Value & Restructuring Fund

Subadviser: United States Trust Company
Portfolio Managers: David J. Williams

INVESTMENT OBJECTIVE & POLICIES ^-To seek long-term capital appreciation. To pursue this goal, the Fund invests primarily (at least 65% of its assets) in common stocks of U.S. and foreign companies whose share prices, in the opinion of the subadviser, do not reflect the economic value of company assets, but where the subadviser believes restructuring efforts or industry consolidation will serve to highlight the true value of the company.

Sector Weighting*	% of Total

Financial	19.29
Energy	17.87
Industrial	11.12
Consumer, Non-cyclical	9.92
Communications	9.76
Consumer, Cyclical	9.07
Basic Materials	5.57
Technology	1.38
Mortgage Securities	1.25
Utilities	0.46

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Value & Restructuring Fund returned +11.07%, outperforming the +10.56% return of the S&P 500 Index.

Environment ^-The best performing stocks in the portfolio during the last few months of 2005 and the first few months of 2006 were typically associated with an expanding economy. While many of these holdings were in the energy and materials sector, it was our bottom-up stock selection process focused on companies undergoing change that led to these opportunities. The portfolio advanced nicely in this period aided by restructuring success and the perceived economic tailwind. Conversely, in May and June, fear of a slowing economy turned many of these leaders into laggards and the portfolio declined. Summer months brought recovery as investors anticipated an end to Fed rate hikes and the portfolio recovered. These swings in investor sentiment provide a useful backdrop to understanding our restructuring focus and short and long term influences on portfolio results.

Cyclical influences play an obvious role in determining portfolio success and our approach tends to perform a bit better in times of expansion than during contraction. However, swings in investor sentiment play a more dominant role in our restructuring focused portfolio over the short term while over the long-term the success of our companies in successfully implementing change determines results. In exuberant times, investors expand their investment horizons and embrace change which benefits our portfolio as our companies sell at lower than average prices but display above average fundamentals. On the other hand, when investors favor defensive investments, our portfolio often trails the broader market due to the inherent uncertainty of restructuring companies and the lack of near term predictability.

The first eight months of 2006 witnessed a bit of everything as investor expectations swung widely in both directions. It is our way to make only minor portfolio adjustments due to short-term influences focusing instead on multi-year transformations underway at our portfolio holdings and the revaluation that can take place when change is successful in improving the quality and durability of company fundamentals. Portfolio turnover has been and remains low and diversification remains paramount with investments distributed among our restructuring themes such as cost-cutting, industry consolidation, break-up value and others and along the restructuring life-cycle of early, mid and late stage restructuring companies.

Outlook ^-Proper diversification goes a long way toward mitigating the impact of short-term market swings and emphasizing longer-term determinants of portfolio results. Along these lines there are many reasons to be optimistic. Stock prices of restructuring companies seem unusually low to us relative to underlying fundamentals and the generally benign economic backdrop. Evidence of these low prices can be found in the dramatic increase in mergers and acquisitions particularly cash deals at significant premiums, a development that has aided the portfolio nicely in the last year and one we expect to continue to boost returns. We expect stock prices to rise as investors focus on the longer-term drivers of equity returns but in periods of investor uncertainty which we will surely face, continued deal making should help steady results.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Value & Restructuring Class NAV (began 10/29/05)	—	—	—	—	—	—	—	11.07%
S&P 500 Index^3,4,5	—	—	—	—	—	—	—	10.56%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Standard & Poors 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

Vista Fund

Subadviser: American Century Investment Management, Inc.
Portfolio Managers: Glenn A. Fogle

INVESTMENT OBJECTIVE & POLICIES ^-To seek long-term capital growth. To pursue this goal, the Fund normally invests in common stocks of U.S. and foreign companies that are medium-sized and smaller at the time of purchase, but the portfolio may purchase other types of securities as well. For purposes of the description of the Vista Fund, medium-sized and smaller companies are defined as companies in the Russell MidCap Growth Index which has a market cap range between $1.23 billion and $15.8 billion as of August 31, 2005.

Sector Weighting*	% of Total

Consumer, Non-cyclical	20.58
Communications	16.28
Industrial	14.72
Financial	8.39
Energy	7.83
Consumer, Cyclical	6.12
Technology	4.53
Basic Materials	3.95
Utilities	1.73

*Top Sectors as a percentage of market value. Does not include short-term securities and investments in the State Street Navigator Securities Lending Prime Portfolio.

PORTFOLIO MANAGER’S COMMENTARY

Performance ^-Since its inception in October 2005, the Vista Fund returned +7.00%, underperforming the +8.00% return of the Russell Midcap Growth Index.

Environment ^-Early in the 10-month period, small- and mid-cap stocks continued outperforming large-cap stocks, as they have since the technology bubble burst in 2000. But investors increasingly steered toward large-cap stocks as the economy cooled in mid-2006. Value stocks continued their string of outperformance versus growth stocks in the period, though growth gained increasing favor as the period closed. Within the mid-cap space, for the 10-month time frame as a whole, the Russell Midcap Value Index gained 14.36%, compared with 7.82% for the Russell Midcap Growth Index.

The Fund’s overweight in Materials stocks reflected one of its key 2006 investment themes: finding areas of the market that would benefit from rising capital expenditures. The sector, which performed particularly well as commodity prices soared early in the period, led all others in contributions to the portfolio’s relative performance. An overweight stake in Industrials, centered on construction and engineering firms, produced similar results. The portfolio also benefited from an overweight in Telecommunication Services, led by investments in growing wireless providers serving the Latin American market. Recognizing the impact that high gasoline prices and rising interest rates have on consumers, we maintained an underweight stake in Consumer Discretionary stocks, which further aided relative returns.

From a relative standpoint, however, the portfolio couldn’t overcome weak security selection in Technology and Health Care stocks, which accounted for the vast majority of its underperformance. Stock selection in Technology suffered in a number of industries; in Health Care, an overweight in providers and services proved detrimental as reimbursement issues and rising costs crimped profit margins for most health insurers and provider networks.

Outlook ^-The Federal Reserve’s rate hike pause and at least a temporary respite from high gas prices boosted both investors’ and consumers’ confidence heading into the final months of 2006. In that climate, we will continue focusing on areas of the market and individual stocks that offer the best fits for our investment process.

The views expressed are those of the portfolio manager as of August 31, 2006, and are subject to change based on market and other conditions.

PERFORMANCE TABLE¹	Average Annual Total Return					Cumulative Total Return

				Since				Since
Periods Ended August 31, 2006	1-year	5-year	10-year	inception	1-year	5-year	10-year	inception²

Vista Class NAV (began 10/29/05)	—	—	—	—	—	—	—	7.00%
Russell Midcap Growth Index^3,4,5	—	—	—	—	—	—	—	8.00%

1 Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2 Current subadviser has managed the fund since October 29, 2005.

3 Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4 Russell Midcap Growth Index is an unmanaged index that contains those stocks from the Russell Mid Cap Index with a greater than average growth orientation.

5 It is not possible to invest directly in an index. Index figures do not reflect sales charges and would be lower if they did.

John Hancock Funds II

Understanding Your Fund’s Expenses

As a shareholder of John Hancock Funds II, you pay ongoing expenses, such as management fees, distribution fees (12b-1) and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds. This example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Actual Expenses

The first table for each Fund shows the actual account values and actual Fund expenses you would have paid on a $1,000 investment in the Fund held from March 1, 2006 through August 31, 2006. It also shows how much a $1,000 investment would be at the close of the period, assuming actual Fund returns and expenses. To estimate the expenses that you paid over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6) and multiply the result by the number in the “Expenses Paid During Period” row as shown below for your Classes.

Hypothetical Example for Comparison Purposes

The second table for each Fund provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid on your investment for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges. Therefore, the second table for each Fund is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different Funds. In addition, if these transactional costs were included, your costs would have been higher.

Absolute Return

Actual Portfolio Return	Class A	Class B	Class C	Class 1

Beginning Account Value 6/26/2006	$1,000.00	$1,000.00	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,042.00	1,040.00	1,040.00	1,042.00
Expenses Paid During Period*	1.03	2.34	2.34	0.56

Hypothetical 5% Portfolio Return	Class A	Class B	Class C	Class 1

Beginning Account Value 6/26/2006	$1,000.00	$1,000.00	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,008.17	1,006.88	1,006.88	1,008.63
Expenses Paid During Period*	1.01	2.30	2.30	0.55

Annualized Expense Ratios	Class A	Class B	Class C	Class 1

	0.55%	1.25%	1.25%	0.30%

Active Bond

Actual Portfolio Return			Class 1	Class NAV

Beginning Account Value 3/1/2006			$1,000.00	$1,000.00
Ending Account Value 8/31/2006			1,014.30	1,014.60
Expenses Paid During Period*			3.81	3.55

Hypothetical 5% Portfolio Return			Class 1	Class NAV

Beginning Account Value 3/1/2006			$1,000.00	$1,000.00
Ending Account Value 8/31/2006			1,021.42	1,021.68
Expenses Paid During Period*			3.82	3.57

Annualized Expense Ratios			Class 1	Class NAV

			0.75%	0.70%

John Hancock Funds II

Understanding Your Fund’s Expenses

All Cap Core

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		992.00
Expenses Paid During Period*		2.89

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,014.36
Expenses Paid During Period*		2.92

Annualized Expense Ratios		Class NAV

		0.84%

All Cap Growth

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	954.10	954.20
Expenses Paid During Period*	4.88	4.63

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.21	1,020.47
Expenses Paid During Period*	5.04	4.79

Annualized Expense Ratios	Class 1	Class NAV

	0.99%	0.94%

All Cap Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,025.20	1,025.30
Expenses Paid During Period*	4.80	4.54

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.47	1,020.72
Expenses Paid During Period*	4.79	4.53

Annualized Expense Ratios	Class 1	Class NAV

	0.94%	0.89%

John Hancock Funds II

Understanding Your Fund’s Expenses

Blue Chip Growth

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	984.50	984.50
Expenses Paid During Period*	4.40	4.15

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.77	1,021.02
Expenses Paid During Period*	4.48	4.23

Annualized Expense Ratios	Class 1	Class NAV

	0.88%	0.83%

Capital Appreciation

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	931.00	931.00
Expenses Paid During Period*	4.19	3.94

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.87	1,021.12
Expenses Paid During Period*	4.38	4.13

Annualized Expense Ratios	Class 1	Class NAV

	0.86%	0.81%

Core Bond

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,015.80	1,016.10
Expenses Paid During Period*	4.47	4.22

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.77	1,021.02
Expenses Paid During Period*	4.48	4.23

Annualized Expense Ratios	Class 1	Class NAV

	0.88%	0.83%

John Hancock Funds II

Understanding Your Fund’s Expenses

Core Equity

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	955.10	955.20
Expenses Paid During Period*	4.34	4.09

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.77	1,021.02
Expenses Paid During Period*	4.48	4.23

Annualized Expense Ratios	Class 1	Class NAV

	0.88%	0.83%

Emerging Growth

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	954.70	954.70
Expenses Paid During Period*	5.03	4.78

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.06	1,020.32
Expenses Paid During Period*	5.19	4.94

Annualized Expense Ratios	Class 1	Class NAV

	1.02%	0.97%

Emerging Small Company

Actual Portfolio Return	Class 1	Class ^{NAV #}

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	880.00	985.40
Expenses Paid During Period*	5.17	1.94

Hypothetical 5% Portfolio Return	Class 1	Class ^{NAV #}

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.71	1,007.09
Expenses Paid During Period*	5.55	1.96

Annualized Expense Ratios	Class 1	Class ^{NAV #}

	1.09%	1.08%

# Period from 6/26/2006 (commencement of operations) to 8/31/2006.

John Hancock Funds II

Understanding Your Fund’s Expenses

Equity-Income

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,040.80	1,040.80
Expenses Paid During Period*	4.53	4.27

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.77	1,021.02
Expenses Paid During Period*	4.48	4.23

Annualized Expense Ratios	Class 1	Class NAV

	0.88%	0.83%

Fundamental Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,034.60	1,034.60
Expenses Paid During Period*	4.41	4.15

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.87	1,021.12
Expenses Paid During Period*	4.38	4.13

Annualized Expense Ratios	Class 1	Class NAV

	0.86%	0.81%

Global Bond

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,032.00	1,031.40
Expenses Paid During Period*	4.30	4.04

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.97	1,021.22
Expenses Paid During Period*	4.28	4.02

Annualized Expense Ratios	Class 1	Class NAV

	0.84%	0.79%

John Hancock Funds II

Understanding Your Fund’s Expenses

Global Real Estate

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,030.00
Expenses Paid During Period*		3.82

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,013.50
Expenses Paid During Period*		3.79

Annualized Expense Ratios		Class NAV

		1.09%

High Income

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		998.60
Expenses Paid During Period*		2.66

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,014.60
Expenses Paid During Period*		2.68

Annualized Expense Ratios		Class NAV

		0.77%

High Yield

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,017.70	1,019.00
Expenses Paid During Period*	3.87	3.61

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,021.37	1,021.63
Expenses Paid During Period*	3.87	3.62

Annualized Expense Ratios	Class 1	Class NAV

	0.76%	0.71%

John Hancock Funds II

Understanding Your Fund’s Expenses

International Equity Index

Actual Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,074.80
Expenses Paid During Period*		3.01

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,022.31
Expenses Paid During Period*		2.93

Annualized Expense Ratios		Class NAV

		0.58%

International Opportunities

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,034.00	1,034.60
Expenses Paid During Period*	5.49	5.23

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.81	1,020.06
Expenses Paid During Period*	5.45	5.19

Annualized Expense Ratios	Class 1	Class NAV

	1.07%	1.02%

International Small Cap

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,025.50	1,026.00
Expenses Paid During Period*	6.02	5.77

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.26	1,019.51
Expenses Paid During Period*	6.01	5.75

Annualized Expense Ratios	Class 1	Class NAV

	1.18%	1.13%

John Hancock Funds II

Understanding Your Fund’s Expenses

International Small Company

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		933.00
Expenses Paid During Period*		3.80

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,013.32
Expenses Paid During Period*		3.96

Annualized Expense Ratios		Class NAV

		1.14%

International Stock

Actual Portfolio Return		Class 1

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,079.10
Expenses Paid During Period*		5.82

Hypothetical 5% Portfolio Return		Class 1

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,019.61
Expenses Paid During Period*		5.65

Annualized Expense Ratios		Class 1

		1.11%

International Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,083.50	1,084.30
Expenses Paid During Period*	5.15	4.89

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.27	1,020.52
Expenses Paid During Period*	4.99	4.74

Annualized Expense Ratios	Class 1	Class NAV

	0.98%	0.93%

John Hancock Funds II

Understanding Your Fund’s Expenses

Investment Quality Bond

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,012.60	1,012.80
Expenses Paid During Period*	4.31	4.06

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.92	1,021.17
Expenses Paid During Period*	4.33	4.08

Annualized Expense Ratios	Class 1	Class NAV

	0.85%	0.80%

Large Cap

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,014.50	1,015.20
Expenses Paid During Period*	4.67	4.42

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.57	1,020.82
Expenses Paid During Period*	4.69	4.43

Annualized Expense Ratios	Class 1	Class NAV

	0.92%	0.87%

Large Cap Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,026.80	1,027.20
Expenses Paid During Period*	4.80	4.55

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.47	1,020.72
Expenses Paid During Period*	4.79	4.53

Annualized Expense Ratios	Class 1	Class NAV

	0.94%	0.89%

John Hancock Funds II

Understanding Your Fund’s Expenses

Mid Cap Core

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	983.50	983.50
Expenses Paid During Period*	4.80	4.55

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.37	1,020.62
Expenses Paid During Period*	4.89	4.63

Annualized Expense Ratios	Class 1	Class NAV

	0.96%	0.91%

Mid Cap Index

Actual Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		972.00
Expenses Paid During Period*		2.76

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,022.41
Expenses Paid During Period*		2.83

Annualized Expense Ratios		Class NAV

		0.56%

Mid Cap Stock

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	967.00	967.00
Expenses Paid During Period*	4.81	4.56

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.32	1,020.57
Expenses Paid During Period*	4.94	4.69

Annualized Expense Ratios	Class 1	Class NAV

	0.97%	0.92%

John Hancock Funds II

Understanding Your Fund’s Expenses

Mid Cap Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	985.90	986.40
Expenses Paid During Period*	4.86	4.61

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.32	1,020.57
Expenses Paid During Period*	4.94	4.69

Annualized Expense Ratios	Class 1	Class NAV

	0.97%	0.92%

Mid Cap Value Equity

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		965.00
Expenses Paid During Period*		3.46

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,013.74
Expenses Paid During Period*		3.55

Annualized Expense Ratios		Class NAV

		1.02%

Natural Resources

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,073.70	1,073.90
Expenses Paid During Period*	5.80	5.54

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.61	1,019.86
Expenses Paid During Period*	5.65	5.40

Annualized Expense Ratios	Class 1	Class NAV

	1.11%	1.06%

John Hancock Funds II

Understanding Your Fund’s Expenses

Quantitative All Cap

Actual Portfolio Return	Class A	Class B	Class C	Class I

Beginning Account Value 7/28/2006	$1,000.00	$1,000.00	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,011.00	1,011.00	1,011.00	1,012.00
Expenses Paid During Period*	1.03	1.69	1.69	0.75

Hypothetical 5% Portfolio Return	Class A	Class B	Class C	Class I

Beginning Account Value 7/28/2006	$1,000.00	$1,000.00	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,003.77	1,003.12	1,003.12	1,004.05
Expenses Paid During Period*	1.03	1.68	1.68	0.75

Annualized Expense Ratios	Class A	Class B	Class C	Class I

	1.07%	1.75%	1.75%	0.78%

Quantitative Mid Cap	��

Actual Portfolio Return			Class 1	Class NAV

Beginning Account Value 3/1/2006			$1,000.00	$1,000.00
Ending Account Value 8/31/2006			926.90	927.50
Expenses Paid During Period*			4.13	3.89

Hypothetical 5% Portfolio Return			Class 1	Class NAV

Beginning Account Value 3/1/2006			$1,000.00	$1,000.00
Ending Account Value 8/31/2006			1,020.92	1,021.17
Expenses Paid During Period*			4.33	4.08

Annualized Expense Ratios			Class 1	Class NAV

			0.85%	0.80%

Quantitative Value

Actual Portfolio Return			Class 1	Class NAV

Beginning Account Value 3/1/2006			$1,000.00	$1,000.00
Ending Account Value 8/31/2006			1,050.80	1,050.80
Expenses Paid During Period*			4.08	3.83

Hypothetical 5% Portfolio Return			Class 1	Class NAV

Beginning Account Value 3/1/2006			$1,000.00	$1,000.00
Ending Account Value 8/31/2006			1,021.22	1,021.48
Expenses Paid During Period*			4.02	3.77

Annualized Expense Ratios			Class 1	Class NAV

			0.79%	0.74%

John Hancock Funds II

Understanding Your Fund’s Expenses

Real Estate Equity

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,099.00
Expenses Paid During Period*		3.26

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,014.15
Expenses Paid During Period*		3.13

Annualized Expense Ratios		Class NAV

		0.90%

Real Estate Securities

Actual Portfolio Return		Class 1

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,117.20
Expenses Paid During Period*		4.48

Hypothetical 5% Portfolio Return		Class 1

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,020.97
Expenses Paid During Period*		4.28

Annualized Expense Ratios		Class 1

		0.84%

Real Return Bond

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,014.00	1,014.30
Expenses Paid During Period*	4.06	3.81

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,021.17	1,021.42
Expenses Paid During Period*	4.08	3.82

Annualized Expense Ratios	Class 1	Class NAV

	0.80%	0.75%

John Hancock Funds II

Understanding Your Fund’s Expenses

Small Cap

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	918.10	918.20
Expenses Paid During Period*	4.64	4.40

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.37	1,020.62
Expenses Paid During Period*	4.89	4.63

Annualized Expense Ratios	Class 1	Class NAV

	0.96%	0.91%

Small Cap Index

Actual Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		988.80
Expenses Paid During Period*		2.86

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,022.33
Expenses Paid During Period*		2.91

Annualized Expense Ratios		Class NAV

		0.57%

Small Cap Opportunities

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	963.10	963.40
Expenses Paid During Period*	5.44	5.20

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.66	1,019.91
Expenses Paid During Period*	5.60	5.35

Annualized Expense Ratios	Class 1	Class NAV

	1.10%	1.05%

John Hancock Funds II

Understanding Your Fund’s Expenses

Small Company

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	906.00	906.10
Expenses Paid During Period*	6.39	6.15

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,018.50	1,018.75
Expenses Paid During Period*	6.77	6.51

Annualized Expense Ratios	Class 1	Class NAV

	1.33%	1.28%

Small Company Growth

Actual Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		972.80
Expenses Paid During Period*		5.87

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,019.26
Expenses Paid During Period*		6.01

Annualized Expense Ratios		Class NAV

		1.18%

Small Company Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	978.50	978.50
Expenses Paid During Period*	5.49	5.24

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.66	1,019.91
Expenses Paid During Period*	5.60	5.35

Annualized Expense Ratios	Class 1	Class NAV

	1.10%	1.05%

John Hancock Funds II

Understanding Your Fund’s Expenses

Special Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	988.00	988.40
Expenses Paid During Period*	5.61	5.36

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,019.56	1,019.81
Expenses Paid During Period*	5.70	5.45

Annualized Expense Ratios	Class 1	Class NAV

	1.12%	1.07%

Spectrum Income

Actual Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,022.10
Expenses Paid During Period*		4.59

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 3/1/2006		$1,000.00
Ending Account Value 8/31/2006		1,020.67
Expenses Paid During Period*		4.58

Annualized Expense Ratios		Class NAV

		0.90%

Strategic Bond

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,018.00	1,018.40
Expenses Paid During Period*	4.22	3.97

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,021.02	1,021.27
Expenses Paid During Period*	4.23	3.97

Annualized Expense Ratios	Class 1	Class NAV

	0.83%	0.78%

John Hancock Funds II

Understanding Your Fund’s Expenses

Strategic Income

Actual Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,013.70
Expenses Paid During Period*		2.99

Hypothetical 5% Portfolio Return		Class NAV

Beginning Account Value 4/28/2006		$1,000.00
Ending Account Value 8/31/2006		1,014.29
Expenses Paid During Period*		2.99

Annualized Expense Ratios		Class NAV

		0.86%

Strategic Value

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,001.80	1,001.80
Expenses Paid During Period*	4.94	4.69

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.27	1,020.52
Expenses Paid During Period*	4.99	4.74

Annualized Expense Ratios	Class 1	Class NAV

	0.98%	0.93%

Total Return

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,017.90	1,018.20
Expenses Paid During Period*	4.12	3.87

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,021.12	1,021.37
Expenses Paid During Period*	4.13	3.87

Annualized Expense Ratios	Class 1	Class NAV

	0.81%	0.76%

John Hancock Funds II

Understanding Your Fund’s Expenses

U.S. Global Leaders Growth

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	947.60	948.40
Expenses Paid During Period*	3.88	3.63

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,021.22	1,021.48
Expenses Paid During Period*	4.02	3.77

Annualized Expense Ratios	Class 1	Class NAV

	0.79%	0.74%

U.S. Government Securities

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,014.80	1,015.10
Expenses Paid During Period*	4.01	3.76

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,021.22	1,021.48
Expenses Paid During Period*	4.02	3.77

Annualized Expense Ratios	Class 1	Class NAV

	0.79%	0.74%

U.S. High Yield Bond

Actual Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,023.10	1,023.30
Expenses Paid During Period*	4.44	4.18

Hypothetical 5% Portfolio Return	Class 1	Class NAV

Beginning Account Value 3/1/2006	$1,000.00	$1,000.00
Ending Account Value 8/31/2006	1,020.82	1,021.07
Expenses Paid During Period*	4.43	4.18

Annualized Expense Ratios	Class 1	Class NAV

	0.87%	0.82%

John Hancock Funds II

Understanding Your Fund’s Expenses

U.S. Multi Sector

Actual Portfolio Return	Class NAV

Beginning Account Value 3/1/2006	$1,000.00
Ending Account Value 8/31/2006	978.40
Expenses Paid During Period*	4.04

Hypothetical 5% Portfolio Return	Class NAV

Beginning Account Value 3/1/2006	$1,000.00
Ending Account Value 8/31/2006	1,021.12
Expenses Paid During Period*	4.13

Annualized Expense Ratios	Class NAV

	0.81%

Value & Restructuring

Actual Portfolio Return	Class NAV

Beginning Account Value 3/1/2006	$1,000.00
Ending Account Value 8/31/2006	991.10
Expenses Paid During Period*	4.62

Hypothetical 5% Portfolio Return	Class NAV

Beginning Account Value 3/1/2006	$1,000.00
Ending Account Value 8/31/2006	1,020.57
Expenses Paid During Period*	4.69

Annualized Expense Ratios	Class NAV

	0.92%

Vista

Actual Portfolio Return	Class NAV

Beginning Account Value 3/1/2006	$1,000.00
Ending Account Value 8/31/2006	948.60
Expenses Paid During Period*	5.16

Hypothetical 5% Portfolio Return	Class NAV

Beginning Account Value 3/1/2006	$1,000.00
Ending Account Value 8/31/2006	1,019.91
Expenses Paid During Period*	5.35

Annualized Expense Ratios	Class NAV

	1.05%

* Expenses are equal to the Fund’s annualized expense ratio for each respective class, multiplied by the average account value over the period, multiplied by [number of days in most recent fiscal half-year or inception, whichever is shorter/365 or 366] (to reflect the one-half year period).

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



Assets	Absolute Return	Active Bond	All Cap Core	All Cap Growth

Investments, at value	$469,634	$504,391,750	$253,455,597	$146,390,352
Investments in affiliated funds, at value	4,708,363	—	—	—
Securities loaned, at value (Note 2)	—	81,697,633	12,028,205	6,928,300
Repurchase agreements, at value	—	6,881,000	30,627,000	7,953,000
Cash	18,202	854,726	7,906	904
Foreign currency, at value	—	3,849	—	29
Receivable for investments sold	—	1,134,871	33,114,322	1,572,629
Receivable for shares sold	—	314,730	68,368	9,646
Dividends and interest receivable	—	3,288,237	479,790	142,300
Receivable due from adviser	32,257	—	—	—
Other assets	—	4,098	3,176	1,562
Total assets	5,228,456	598,570,894	329,784,364	162,998,722

Liabilities

Payable for investments purchased	—	3,848,695	33,377,015	874,386
Payable for delayed delivery securities purchased	—	74,683,222	—	—
Payable for shares repurchased	—	7,487	—	3,121
Payable upon return of securities loaned (Note 2)	—	83,363,396	12,324,387	7,097,453
Payable for futures variation margin	—	—	1,415	—
Payable to affiliates
Fund administration fees	122	9,170	6,393	5,742
Other payables and accrued expenses	22,560	103,881	51,713	47,133
Total liabilities	22,682	162,015,851	45,760,923	8,027,835

Net assets

Capital paid-in	4,994,565	435,610,733	285,676,890	148,381,582
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, foreign currency transactions and
forward foreign currency contracts	—	(3,319,079)	(8,213,574)	(3,002,765)
Unrealized appreciation (depreciation) on investments,
futures contracts, and translation of assets and
liabilities in foreign currencies	160,534	670,385	5,270,609	9,501,316
Undistributed net investment income (loss)	50,675	3,593,004	1,289,516	90,754
Net assets	$5,205,774	$436,555,043	$284,023,441	$154,970,887
Investments, including repurchase agreements, at cost	$5,017,463	$592,300,056	$291,452,968	$151,769,476
Foreign currency, at cost	—	$3,823	—	$29

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class A
Net assets	$1,302,120	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value and redemption price (Note 3) per share
(net assets ÷ shares outstanding)	$10.42	—	—	—
Class B^a
Net assets	$1,300,473	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value and offering price (Note 3) per share
(net assets ÷ shares outstanding)	$10.40	—	—	—
Class C^a
Net assets	$1,300,473	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value and offering price (Note 3) per share
(net assets ÷ shares outstanding)	$10.40	—	—	—
Class 1
Net assets	$1,302,708	$37,283,742	—	$32,229,101
Shares outstanding	125,000	3,882,410	—	1,961,825
Net asset value per share (net assets ÷ shares outstanding)	$10.42	$9.60	—	$16.43
Class NAV
Net assets	—	$399,271,301	$284,023,441	$122,741,786
Shares outstanding	—	41,596,537	28,631,265	7,463,449
Net asset value per share (net assets ÷ shares outstanding)	—	$9.60	$9.92	$16.45

Maximum offering price per share

Class A¹($10.42 ÷ 95%)	$10.97	—	—	—

¹On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.
^aRedemption price is equal to net asset value less any applicable contingent deferred sales charges (Note 3).

The accompanying notes are an integral part of the financial statements. 80

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


Assets	All Cap Value	Blue Chip Growth	Capital Appreciation	Core Bond

Investments, at value	$204,008,294	$1,268,309,434	$461,535,163	$217,232,500
Securities loaned, at value (Note 2)	16,658,524	47,949,100	18,108,656	18,991,238
Repurchase agreements, at value	13,275,000	2,041,000	—	1,896,000
Cash	634	—	496	417,813
Receivable for investments sold	1,005,094	4,625,284	1,923,239	9,727,764
Receivable for delayed delivery securities sold	—	—	—	50,661,921
Receivable for shares sold	53,321	462,618	93,061	38,606
Dividends and interest receivable	377,249	1,255,585	242,960	1,447,724
Other assets	2,019	12,034	3,138	1,841
Total assets	235,380,135	1,324,655,055	481,906,713	300,415,407

Liabilities

Payable for investments purchased	2,002,877	2,524,969	2,956,393	21,997,053
Payable for delayed delivery securities purchased	—	—	—	60,559,772
Payable for shares repurchased	95,219	143,421	101,011	—
Payable upon return of securities loaned (Note 2)	17,067,785	48,982,997	18,532,002	19,381,094
Payable to affiliates
Fund administration expenses	4,265	22,293	7,270	7,910
Other payables and accrued expenses	48,188	130,587	65,168	79,782
Total liabilities	19,218,334	51,804,267	21,661,844	102,025,611

Net assets

Capital paid-in	192,470,269	1,201,032,427	468,587,781	197,819,645
Accumulated undistributed net realized gain (loss) on investments,
foreign currency transactions and forward foreign currency contracts	5,826,940	(3,928,748)	(17,467,941)	(1,956,868)
Unrealized appreciation (depreciation) on investments and
translation of assets and liabilities in foreign currencies	16,725,292	70,971,019	8,657,847	869,346
Undistributed net investment income (loss)	1,139,300	4,776,090	467,182	1,657,673
Net assets	$216,161,801	$1,272,850,788	$460,244,869	$198,389,796
Investments, including repurchase agreements, at cost	$217,216,526	$1,247,331,996	$470,985,984	$237,250,392

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$21,054,323	$184,779,132	$67,703,887	$962,817
Shares outstanding	1,329,231	10,369,260	7,168,783	76,931
Net asset value per share (net assets ÷ shares outstanding)	$15.84	$17.82	$9.44	$12.52
Class NAV
Net assets	$195,107,478	$1,088,071,656	$392,540,982	$197,426,979
Shares outstanding	12,348,003	61,111,112	41,538,087	15,783,183
Net asset value per share (net assets ÷ shares outstanding)	$15.80	$17.80	$9.45	$12.51

The accompanying notes are an integral part of the financial statements. 81

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



			Emerging
Assets	Core Equity	Emerging Growth	Small Company	Equity-Income

Investments, at value	$584,435,089	$172,844,838	$50,180,125	$713,281,169
Securities loaned, at value (Note 2)	—	37,271,615	—	40,404,082
Repurchase agreements, at value	14,737,000	—	2,495,000	3,515,000
Cash	958	915	828	795
Receivable for investments sold	1,904,609	289,262	963,857	1,550,534
Receivable for shares sold	65,434	70	—	420,870
Dividends and interest receivable	225,727	37,181	5,824	2,056,152
Receivable due from adviser	—	—	61,435	—
Other assets	5,276	1,825	680	8,941
Total assets	601,374,093	210,445,706	53,707,749	761,237,543

Liabilities

Payable for investments purchased	5,141,144	102,716	1,765,728	678,437
Payable for shares repurchased	—	295,691	49,466	276,909
Payable upon return of securities loaned (Note 2)	—	38,275,542	—	41,370,005
Payable to affiliates
Fund administration expenses	17,166	30,700	30,013	24,710
Other payables and accrued expenses	76,332	86,370	43,757	90,489
Total liabilities	5,234,642	38,791,019	1,888,964	42,440,550

Net assets

Capital paid-in	586,021,098	155,912,789	50,734,807	622,841,119
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, foreign currency transactions and
forward foreign currency contracts	3,447,577	31,090,358	5,058,902	31,315,187
Unrealized appreciation (depreciation) on investments and
translation of assets and liabilities in foreign currencies	6,670,679	(15,348,460)	(3,974,924)	56,205,455
Undistributed net investment income (loss)	97	—	—	8,435,232
Net assets	$596,139,451	$171,654,687	$51,818,785	$718,796,993
Investments, including repurchase agreements, at cost	$592,501,706	$225,464,913	$56,650,049	$700,994,796

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$12,113,145	$120,481,278	$51,720,247	$183,451,590
Shares outstanding	850,013	6,568,281	1,785,370	10,119,372
Net asset value per share (net assets ÷ shares outstanding)	$14.25	$18.34	$28.97	$18.13
Class NAV
Net assets	$584,026,306	$51,173,409	$98,538	$535,345,403
Shares outstanding	40,933,677	2,789,800	3,401	29,558,876
Net asset value per share (net assets ÷ shares outstanding)	$14.27	$18.34	$28.97	$18.11

The accompanying notes are an integral part of the financial statements. 82

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


Assets	Fundamental Value	Global Bond	Global Real Estate	High Income

Investments, at value	$761,694,064	$632,977,657	$350,030,574	$287,672,560
Securities loaned, at value (Note 2)	22,455,397	9,124,648	41,422,785	59,127,174
Repurchase agreements, at value	—	11,868,000	4,680,000	—
Cash	595	384	74	—
Foreign currency, at value	6,382	12,875,304	891,977	—
Receivable for investments sold	728,599	508,414	3,374,344	1,124,025
Receivable for shares sold	1,395,888	915,540	3,692	95,471
Receivable for forward foreign currency exchange contracts (Note 2)	—	1,477,322	430,756	—
Dividends and interest receivable	1,068,234	3,299,547	360,760	4,781,678
Receivable for swap contracts	—	141,725	—	—
Receivable for futures variation margin	—	932,938	—	—
Other assets	6,854	5,586	3,859	3,322
Total assets	787,356,013	674,127,065	401,198,821	352,804,230

Liabilities

Due to custodian	—	—	—	994,927
Payable for investments purchased	2,899,183	37,045,599	1,566,880	1,558,829
Payable for delayed delivery securities pruchased	—	26,846,148	—	—
Payable upon return of securities loaned (Note 2)	22,927,961	9,309,000	43,240,359	60,455,958
Payable for options written, at value	—	2,994,704	—	476,050
Payable for swap contracts	—	562,329	—	—
Unrealized depreciation of swap contracts (Note 2)	—	58,762	—	—
Unrealized depreciation on forward volatility options (Note 2)	—	31,951	—	—
Payable for forward foreign currency exchange contracts (Note 2)	—	2,136,719	1,048,158	184,378
Payable to affiliates
Fund administration expenses	13,421	13,777	7,964	6,628
Other payables and accrued expenses	91,695	130,139	110,982	68,225
Total liabilities	25,932,260	79,129,128	45,974,343	63,744,995

Net assets

Capital paid-in	706,520,373	579,998,011	343,735,965	292,151,701
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, options written, interest rate swaps,
foreign currency transactions and forward foreign currency contracts	4,881,179	(1,979,215)	(8,654,114)	(602,478)
Unrealized appreciation (depreciation) on investments,
futures contracts, options written, interest rate swaps and
translation of assets and liabilities in foreign currencies	45,751,068	7,486,259	15,126,084	(5,980,048)
Undistributed net investment income (loss)	4,271,133	9,492,882	5,016,543	3,490,060
Net assets	$761,423,753	$594,997,937	$355,224,478	$289,059,235
Investments, including repurchase agreements, at cost	$738,398,686	$648,911,321	$380,386,125	$352,637,235
Foreign currency, at cost	$6,226	$12,835,350	$892,085	—
Premium received on written options	—	$2,493,828	—	$517,604

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$66,919,554	$41,070,045	—	—
Shares outstanding	4,220,517	2,769,848	—	—
Net asset value per share (net assets ÷ shares outstanding)	$15.86	$14.83	—	—
Class NAV
Net assets	$694,504,199	$553,927,892	$355,224,478	$289,059,235
Shares outstanding	43,877,857	37,449,290	34,487,270	29,282,645
Net asset value per share (net assets ÷ shares outstanding)	$15.83	$14.79	$10.30	$9.87

The accompanying notes are an integral part of the financial statements. 83

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



		International	International	International
Assets	High Yield	Equity Index	Opportunities	Small Cap

Investments, at value	$1,123,646,335	$307,468,597	$555,952,487	$361,988,214
Securities loaned, at value (Note 2)	279,406,317	56,232,027	102,487,713	46,558,890
Repurchase agreements, at value	33,200,000	—	9,470,000	26,833,000
Cash	408,654	—	637	162
Foreign currency, at value	544,387	627,297	107,624	9,566,132
Receivable for investments sold	16,719,970	1,647,951	11,007,822	—
Receivable for shares sold	748,390	114,112	141,410	64,217
Receivable for forward foreign currency exchange contracts (Note 2)	—	94,029	—	—
Dividends and interest receivable	23,074,909	677,634	441,907	1,040,507
Receivable for futures variation margin	—	1,471,057	—	—
Other assets	15,194	4,469	4,434	5,687
Total assets	1,477,764,156	368,337,173	679,614,034	446,056,809

Liabilities

Capital gains withholding tax	—	—	—	242,277
Payable for investments purchased	4,223,441	1,436,595	10,822,189	559,756
Payable for shares repurchased	82,000	—	—	—
Payable upon return of securities loaned (Note 2)	285,165,979	59,053,314	107,481,210	49,186,127
Payable for futures variation margin	—	28,229	—	—
Payable for forward foreign currency exchange contracts (Note 2)	—	11,084	—	—
Payable to affiliates
Fund administration expenses	27,386	4,624	10,546	9,719
Other payables and accrued expenses	169,850	44,310	139,379	193,840
Total liabilities	289,668,656	60,578,156	118,453,324	50,191,719

Net assets

Capital paid-in	1,172,248,792	272,434,870	490,996,985	310,729,239
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, foreign currency transactions and
forward foreign currency contracts	8,020,849	2,605,976	2,598,649	51,813,331
Unrealized appreciation (depreciation) on investments,
futures contracts and translation of assets and
liabilities in foreign currencies	(7,794,032)	29,836,925	67,545,351	28,663,284^a
Undistributed net investment income (loss)	15,619,891	2,881,246	19,725	4,659,236
Net assets	$1,188,095,500	$307,759,017	$561,160,710	$395,865,090
Investments, including repurchase agreements, at cost	$1,444,087,968	$334,559,078	$600,366,904	$406,360,101
Foreign currency, at cost	$515,353	$625,747	$107,320	$9,683,288

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$43,950,157	—	$8,942,696	$36,951,053
Shares outstanding	4,342,243	—	554,477	1,763,618
Net asset value per share (net assets ÷ shares outstanding)	$10.12	—	$16.13	$20.95
Class NAV
Net assets	$1,144,145,343	$307,759,017	$552,218,014	$358,914,037
Shares outstanding	113,506,841	16,226,810	34,176,390	17,134,122
Net asset value per share (net assets ÷ shares outstanding)	$10.08	$18.97	$16.16	$20.95

^aNet of $242,277 in deferred foreign withholding taxes for International Small Cap.

The accompanying notes are an integral part of the financial statements. 84

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


	International	International	International	Investment
Assets	Small Company	Stock	Value	Quality Bond

Investments, at value	$219,549,301	$75,669,401	$937,781,846	$120,862,841
Securities loaned, at value (Note 2)	37,750,230	978,177	100,205,333	30,020,994
Repurchase agreements, at value	2,107,000	393,000	19,803,000	9,703,000
Cash	480	297	546	786
Foreign currency, at value	1,202,491	265,720	14,778,109	—
Cash segregated for futures contracts	—	550,000	—	—
Receivable for investments sold	145,960	5,238	—	—
Receivable for shares sold	27,999	—	201,925	44,685
Receivable for forward foreign currency exchange contracts (Note 2)	—	39,266	—	—
Dividends and interest receivable	205,705	2,795,334	2,726,540	1,333,347
Receivable for futures variation margin	—	29,861	—	—
Receivable due from adviser	—	—	13,409	70
Other assets	2,488	9,803	10,492	1,263
Total assets	260,991,654	80,736,097	1,075,521,200	161,966,986

Liabilities

Capital gains withholding tax	1,892	—	—	—
Payable for investments purchased	290,391	—	182,038	819,364
Payable for delayed delivery securities purchased	—	—	—	2,052,548
Payable for shares repurchased	—	13,107	—	119,172
Payable upon return of securities loaned (Note 2)	39,707,208	1,028,026	104,966,722	30,637,942
Payable for futures variation margin	—	11,249	—	16,953
Payable for forward foreign currency exchange contracts (Note 2)	—	68,321	—	—
Payable to affiliates
Fund administration expenses	4,904	20,140	24,198	3,862
Other payables and accrued expenses	76,269	275,413	257,131	69,710
Total liabilities	40,080,664	1,416,256	105,430,089	33,719,551

Net assets

Capital paid-in	234,373,406	62,987,912	791,293,144	128,278,583
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, foreign currency transactions and
forward foreign currency contracts	(7,554,175)	(208)	49,679,104	(366,488)
Unrealized appreciation (depreciation) on investments,
futures contracts and translation of assets and
liabilities in foreign currencies	(6,753,919)^a	13,665,641	105,464,902	(862,651)
Undistributed net investment income (loss)	845,678	2,666,496	23,653,961	1,197,991
Net assets	$220,910,990	$79,319,841	$970,091,111	$128,247,435
Investments, including repurchase agreements, at cost	$266,159,932	$63,483,062	$952,362,733	$161,398,588
Foreign currency, at cost	$1,201,488	$267,421	$14,749,579	—

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	—	$79,319,841	$134,429,163	$34,859,138
Shares outstanding	—	5,740,707	7,506,850	2,963,182
Net asset value per share (net assets ÷ shares outstanding)	—	$13.82	$17.91	$11.76
Class NAV
Net assets	$220,910,990	—	$835,661,948	$93,388,297
Shares outstanding	23,673,770	—	46,750,287	7,944,725
Net asset value per share (net assets ÷ shares outstanding)	$9.33	—	$17.88	$11.75

^aNet of deferred foreign withholding taxes of $1,892 for International Small Company.

The accompanying notes are an integral part of the financial statements. 85

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



Assets	Large Cap	Large Cap Value	Mid Cap Core	Mid Cap Index

Investments, at value	$190,136,057	$339,005,203	$248,261,725	$172,177,954
Securities loaned, at value (Note 2)	6,464,141	14,553,765	19,407,625	30,056,185
Repurchase agreements, at value	3,326,000	—	53,132,000	541,000
Cash	684	—	791	659
Foreign currency, at value	—	—	5,675,617	—
Receivable for investments sold	481,414	—	3,750,244	—
Receivable for shares sold	31,029	371,800	38,237	16,866
Dividends and interest receivable	319,436	632,241	332,314	159,334
Receivable for futures variation margin	—	—	—	49,600
Other assets	1,782	1,683	3,664	693
Total assets	200,760,543	354,564,692	330,602,217	203,002,291

Liabilities

Due to custodian	—	96,574	—	—
Payable for investments purchased	305,473	—	4,965,274	—
Payable for shares repurchased	—	—	27,487	—
Payable upon return of securities loaned (Note 2)	6,601,703	14,896,485	19,867,086	30,804,574
Payable to affiliates
Fund administration expenses	4,437	7,807	8,866	2,206
Due to adviser	—	—	—	1,666
Other payables and accrued expenses	45,868	50,057	62,409	38,352
Total liabilities	6,957,481	15,050,923	24,931,122	30,846,798

Net assets

Capital paid-in	179,904,511	321,849,283	278,211,895	173,066,721
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, foreign currency transactions and
forward foreign currency contracts	3,114,081	(1,478,897)	11,819,064	132,501
Unrealized appreciation (depreciation) on investments,
futures contracts and translation of assets and
liabilities in foreign currencies	9,634,421	17,901,225	13,277,221	(1,868,848)
Undistributed net investment income (loss)	1,150,049	1,242,158	2,362,915	825,119
Net assets	$193,803,062	$339,513,769	$305,671,095	$172,155,493
Investments, including repurchase agreements, at cost	$190,291,777	$335,657,743	$307,523,543	$204,876,370
Foreign currency, at cost	—	—	$5,684,105	—

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$2,060,522	$105,323,658	$11,243,766	—
Shares outstanding	140,472	4,584,811	651,471	—
Net asset value per share (net assets ÷ shares outstanding)	$14.67	$22.97	$17.26	—
Class NAV
Net assets	$191,742,540	$234,190,111	$294,427,329	$172,155,493
Shares outstanding	13,073,261	10,178,577	17,056,845	9,369,737
Net asset value per share (net assets ÷ shares outstanding)	$14.67	$23.01	$17.26	$18.37

The accompanying notes are an integral part of the financial statements. 86

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


			Mid Cap
Assets	Mid Cap Stock	Mid Cap Value	Value Equity	Natural Resources

Investments, at value	$291,415,707	$137,780,116	$99,750,567	$733,911,348
Securities loaned, at value (Note 2)	71,681,651	20,377,144	16,791,394	71,298,145
Repurchase agreements, at value	12,377,000	5,820,000	—	35,462,000
Cash	97	939	25,510	404
Foreign currency, at value	—	—	—	486,481
Receivable for investments sold	1,548,815	274,977	2,807,672	—
Receivable for shares sold	21,740	15,723	8,605	3,631,256
Dividends and interest receivable	78,472	178,651	146,771	1,459,595
Other assets	2,883	2,316	1,102	7,369
Total assets	377,126,365	164,449,866	119,531,621	846,256,598

Liabilities

Due to custodian	1,548,815	—	—	—
Payable for investments purchased	1,140,921	306,528	4,135,327	88,153
Payable for shares repurchased	45,023	—	—	206,549
Payable upon return of securities loaned (Note 2)	73,452,448	20,909,218	17,229,156	72,883,888
Fund administration expenses	8,351	4,392	2,206	14,744
Other payables and accrued expenses	61,029	45,085	41,152	119,213
Total liabilities	76,256,587	21,265,223	21,407,841	73,312,547

Net assets

Capital paid-in	270,197,904	128,418,339	101,230,202	619,960,625
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, foreign currency transactions and
forward foreign currency contracts	14,254,231	5,190,077	(871,916)	32,945,984
Unrealized appreciation (depreciation) on investments and
translation of assets and liabilities in foreign currencies	16,417,643	8,839,164	(2,464,971)	114,034,956
Undistributed net investment income (loss)	—	737,063	230,465	6,002,486
Net assets	$300,869,778	$143,184,643	$98,123,780	$772,944,051
Investments, including repurchase agreements, at cost	$359,056,883	$155,138,096	$119,006,979	$726,632,531
Foreign currency, at cost	—	—	—	$489,746

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$106,749,566	$93,479,668	—	$81,381,839
Shares outstanding	6,751,092	4,953,645	—	2,278,995
Net asset value per share (net assets ÷ shares outstanding)	$15.81	$18.87	—	$35.71
Class NAV
Net assets	$194,120,212	$49,704,975	$98,123,780	$691,562,212
Shares outstanding	12,262,613	2,635,211	10,163,245	19,428,491
Net asset value per share (net assets ÷ shares outstanding)	$15.83	$18.86	$9.65	$35.60

The accompanying notes are an integral part of the financial statements. 87

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



	Quantitative	Quantitative	Quantitative	Real
Assets	All Cap	Mid Cap	Value	Estate Equity

Investments, at value	$5,023,003	$183,523,168	$457,775,981	$273,802,292
Securities loaned, at value (Note 2)	—	41,490,539	24,016,341	33,658,317
Repurchase agreement, at value	—	—	—	2,297,000
Cash	14,243	8,283	4,546	583
Receivable for investments sold	21,611	3,382,316	—	—
Receivable for shares sold	—	45,337	203,974	21,425
Dividends and interest receivable	7,653	64,182	773,767	228,569
Receivable due from adviser	23,320	—	—	—
Other assets	—	1,999	3,695	3,041
Total assets	5,089,830	228,515,824	482,778,304	310,011,227

Liabilities

Payable for investments purchased	11,250	2,847,903	—	613,222
Payable upon return of securities loaned (Note 2)	—	42,435,825	24,592,740	34,447,109
Payable to affiliates
Fund administration fees	54	4,076	8,194	6,296
Other payables and accrued expenses	23,689	43,757	60,190	50,134
Total liabilities	34,993	45,331,561	24,661,124	35,116,761

Net assets

Capital paid-in	4,997,328	175,790,348	403,894,233	249,457,958
Accumulated undistributed net realized gain (loss) on investments	6,261	(2,784,557)	20,826,320	1,890,278
Unrealized appreciation (depreciation) on investments	41,732	9,969,387	29,110,362	22,030,725
Undistributed net investment income (loss)	9,516	209,085	4,286,265	1,515,505
Net assets	$5,054,837	$183,184,263	$458,117,180	$274,894,466
Investments, including repurchase agreements, at cost	$4,981,271	$215,044,320	$452,681,960	$287,726,884

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class A
Net assets	$1,264,033	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value and redemption price (Note 3) per share
(net assets ÷ shares outstanding)	$10.11	—	—	—
Class B^a
Net assets	$1,263,209	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value and offering price (Note 3) per share
(net assets ÷ shares outstanding)	$10.11	—	—	—
Class C^a
Net assets	$1,263,209	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value and offering price (Note 3) per share
(net assets ÷ shares outstanding)	$10.11	—	—	—
Class I
Net assets	$1,264,386	—	—	—
Shares outstanding	125,000	—	—	—
Net asset value per share (net assets ÷ shares outstanding)	$10.12	—	—	—
Class 1
Net assets	—	$133,373,231	$95,796,140	—
Shares outstanding	—	9,315,002	5,785,667	—
Net asset value per share (net assets ÷ shares outstanding)	—	$14.32	$16.56	—
Class NAV
Net assets	—	$49,811,032	$362,321,040	$274,894,466
Shares outstanding	—	3,479,128	21,874,998	25,023,046
Net asset value per share (net assets ÷ shares outstanding)	—	$14.32	$16.56	$10.99

Maximum offering price per share

Class A¹($10.11 ÷ 95%)	$10.64	—	—	—

¹On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.
a Redemption price is equal to net asset value less any applicable contingent deferred sales charges (Note 3).

The accompanying notes are an integral part of the financial statements. 88

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


Assets	Real Estate Securities	Real Return Bond	Small Cap	Small Cap Index

Investments, at value	$166,466,109	$899,667,896	$237,735,274	$125,940,654
Securities loaned, at value (Note 2)	1,539,498	11,000,333	54,437,362	31,219,839
Repurchase agreements, at value	4,925,000	8,637,000	3,866,000	—
Cash	830	16,633	312	37,280
Foreign currency, at value	—	315,751	—	—
Receivable for investments sold	369,054	—	2,183,514	5,574
Receivable for delayed delivery securities sold	—	5,850,000	—	—
Receivable for shares sold	105,238	106,898	8,855	4,357
Dividends and interest receivable	118,719	3,908,784	62,775	79,557
Receivable for swap contracts	—	152,467	—	—
Unrealized appreciation of swap contracts (Note 2)	—	1,808,198	—	—
Receivable for futures variation margin	—	148,721	—	—
Receivable due from adviser	—	—	—	7,878
Other assets	7,367	6,475	2,183	697
Total assets	173,531,815	931,619,156	298,296,275	157,295,836

Liabilities

Payable for investments purchased	1,326,937	—	1,732,657	—
Payable for delayed delivery securities purchased	—	217,385,149	—	—
Payable upon return of securities loaned (Note 2)	1,572,850	11,227,436	55,917,662	32,157,578
Payable for options written, at value	—	381,726	—	—
Payable for futures variation margin	—	—	—	2,800
Payable for forward foreign currency exchange contracts (Note 2)	—	671,182	—	—
Payable for swap contracts	—	26,201	—	—
Payable to affiliates
Fund administration expenses	10,683	12,188	6,215	2,535
Other payables and accrued expenses	59,710	117,868	48,502	36,485
Total liabilities	2,970,180	229,821,750	57,705,036	32,199,398

Net assets

Capital paid-in	54,158,965	695,365,310	233,850,347	119,963,061
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, options written, interest rate swaps,
foreign currency transactions and forward foreign currency contracts	79,575,928	3,166,159	(1,290,852)	3,381,304
Unrealized appreciation (depreciation) on investments,
futures contracts, options written, interest rate swaps and
translation of assets and liabilities in foreign currencies	32,841,754	(73,149)	8,031,744	1,215,440
Undistributed net investment income (loss)	3,984,988	3,339,086	—	536,633
Net assets	$170,561,635	$701,797,406	$240,591,239	$125,096,438
Investments, including repurchase agreements, at cost	$140,088,853	$919,767,932	$288,006,892	$156,144,205
Foreign currency, at cost	—	$315,264	—	—
Premium received on written options	—	$331,920	—	—

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$170,561,635	$17,347,250	$795,786	—
Shares outstanding	5,696,344	1,293,505	56,749	—
Net asset value per share (net assets ÷ shares outstanding)	$29.94	$13.41	$14.02	—
Class NAV
Net assets	—	$684,450,156	$239,795,453	$125,096,438
Shares outstanding	—	51,388,376	17,075,346	7,842,689
Net asset value per share (net assets ÷ shares outstanding)	—	$13.32	$14.04	$15.95

The accompanying notes are an integral part of the financial statements. 89

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



	Small Cap	Small	Small Company	Small Company
Assets	Opportunities	Company	Growth	Value

Investments, at value	$233,914,732	$93,890,854	$72,288,345	$386,961,652
Securities loaned, at value (Note 2)	61,872,659	22,846,131	—	93,113,462
Repurchase agreements, at value	15,996,000	481,000	1,437,000	3,343,000
Cash	8	195	383	—
Receivable for investments sold	596,809	2,090,688	329,312	397,293
Receivable for shares sold	—	10,638	18,424	13,134
Dividends and interest receivable	69,541	65,438	8,759	284,042
Other assets	2,775	910	686	3,733
Total assets	312,452,524	119,385,854	74,082,909	484,116,316

Liabilities

Payable for investments purchased	1,785,462	2,483,518	139,210	469,267
Payable for shares repurchased	21,989	3,105	—	186,251
Payable upon return of securities loaned (Note 2)	63,456,325	23,408,260	—	95,479,263
Payable to affiliates
Fund administration expenses	6,491	3,237	2,006	8,738
Other payables and accrued expenses	50,732	62,168	40,898	57,703
Total liabilities	65,320,999	25,960,288	182,114	96,201,222

Net assets

Capital paid-in	223,688,468	92,469,697	67,787,488	351,900,983
Accumulated undistributed net realized gain (loss) on investments,
foreign currency transactions and forward foreign currency contracts	6,716,360	(365,945)	1,232,409	3,010,994
Unrealized appreciation (depreciation) on investments	15,182,294	1,321,814	4,880,900	32,157,056
Undistributed net investment income (loss)	1,544,403	—	(2)	846,061
Net assets	$247,131,525	$93,425,566	$73,900,795	$387,915,094
Investments, including repurchase agreements, at cost	$296,601,097	$115,896,171	$68,844,445	$451,261,058

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$30,450,106	$6,070,937	—	$148,620,194
Shares outstanding	1,310,076	393,818	—	6,282,031
Net asset value per share (net assets ÷ shares outstanding)	$23.24	$15.42	—	$23.66
Class NAV
Net assets	$216,681,419	$87,354,629	$73,900,795	$239,294,900
Shares outstanding	9,363,422	5,659,156	6,665,329	10,126,170
Net asset value per share (net assets ÷ shares outstanding)	$23.14	$15.44	$11.09	$23.63

The accompanying notes are an integral part of the financial statements. 90

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


Assets	Special Value	Spectrum Income	Strategic Bond	Strategic Income

Investments, at value	$110,816,995	$738,380,952	$376,484,610	$281,755,083
Securities loaned, at value (Note 2)	30,324,584	81,569,665	48,170,381	69,120,975
Repurchase agreements, at value	18,053,000	26,772,000	28,200,000	—
Cash	220	40,393	356,621	112
Foreign currency, at value	—	175,017	—	82,190
Receivable for investments sold	28,875	7,845,458	19,656	1,411,865
Receivable for delayed delivery securities sold	—	—	76,618,406	—
Receivable for shares sold	20,663	764,782	79,624	35,861
Receivable for forward foreign currency exchange contracts (Note 2)	—	151,173	—	204,021
Dividends and interest receivable	72,889	7,822,386	3,433,864	3,887,822
Receivable for futures variation margin	—	3,179	—	—
Other assets	1,195	6,832	5,309	3,226
Total assets	159,318,421	863,531,837	533,368,471	356,501,155

Liabilities

Payable for investments purchased	496,717	15,917,580	281,060	1,043,534
Payable for delayed delivery securities purchased	—	—	171,479,014	1,302,361
Payable for shares repurchased	—	—	28,671	—
Payable upon return of securities loaned (Note 2)	31,115,018	83,287,899	49,146,472	70,775,414
Payable for options written, at value	—	—	247,456	—
Payable for futures variation margin	—	—	306,653	—
Payable for forward foreign currency exchange contracts (Note 2)	—	311,816	—	2,193,109
Payable to affiliates
Fund administration expenses	2,875	13,716	9,008	6,479
Other payables and accrued expenses	42,018	269,854	100,897	86,825
Total liabilities	31,656,628	99,800,865	221,599,231	75,407,722

Net assets

Capital paid-in	118,997,783	745,816,154	311,445,518	278,957,842
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, options written, foreign currency transactions and
forward foreign currency contracts	947,156	(160,269)	(5,369,848)	(507,126)
Unrealized appreciation (depreciation) on investments,
futures contracts, options written and translation of assets and
liabilities in foreign currencies	7,424,159	11,651,117	2,577,393	(1,112,323)
Undistributed net investment income (loss)	292,695	6,423,970	3,116,177	3,755,040
Net assets	$127,661,793	$763,730,972	$311,769,240	$281,093,433
Investments, including repurchase agreements, at cost	$151,770,420	$834,918,505	$448,998,871	$350,014,222
Foreign currency, at cost	—	$175,092	—	$82,189
Premium received on written options	—	—	$233,474	—

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$3,862,125	—	$41,781,486	—
Shares outstanding	188,388	—	3,542,433	—
Net asset value per share (net assets ÷ shares outstanding)	$20.50	—	$11.79	—
Class NAV
Net assets	$123,799,668	$763,730,972	$269,987,754	$281,093,433
Shares outstanding	6,033,625	74,370,852	22,931,151	27,952,938
Net asset value per share (net assets ÷ shares outstanding)	$20.52	$10.27	$11.77	$10.06

The accompanying notes are an integral part of the financial statements. 91

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006



			U.S. Global	U.S. Government
Assets	Strategic Value	Total Return	Leaders Growth	Securities

Investments, at value	$154,192,576	$1,428,143,449	$472,758,114	$302,813,146
Securities loaned, at value (Note 2)	13,033,306	27,645,085	2,766,722	—
Repurchase agreements, at value	—	46,743,000	5,402,000	52,000,000
Cash	—	60	482	347,884
Foreign currency, at value	—	1,355,922	—	—
Receivable for investments sold	1,749,803	—	957,718	—
Receivable for delayed delivery securities sold	—	1,955,008	—	42,961,195
Receivable for shares sold	33,904	655,454	130,796	136,619
Receivable for forward foreign currency exchange contracts (Note 2)	—	207,275	—	—
Dividends and interest receivable	300,693	3,334,674	383,645	585,403
Receivable for swap contracts	—	25,941	—	—
Unrealized appreciation of swap contracts (Note 2)	—	102,020	—	—
Receivable for futures variation margin	—	1,152,184	—	8,313
Other assets	1,409	10,881	4,260	2,070
Total assets	169,311,691	1,511,330,953	482,403,737	398,854,630

Liabilities

Due to custodian	1,220,775	—	—	—
Payable for investments purchased	2,326,245	11,700,000	2,486,968	1,899,480
Payable for delayed delivery securities purchased	—	303,866,901	—	193,217,087
Payable for shares repurchased	—	57,647	—	98,419
Payable upon return of securities loaned (Note 2)	13,329,847	28,221,891	2,825,622	—
Payable for options written, at value	—	6,278,640	—	—
Payable for futures variation margin	—	—	—	2,578
Payable for forward foreign currency exchange contracts (Note 2)	—	1,729,083	—	—
Payable to affiliates
Fund administration expenses	3,477	20,280	12,877	3,995
Other payables and accrued expenses	43,846	181,819	64,444	68,302
Total liabilities	16,924,190	352,056,261	5,389,911	195,289,861

Net assets

Capital paid-in	144,752,358	1,149,215,011	495,814,764	202,432,297
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, options written, interest rate swaps,
foreign currency transactions and forward foreign currency contracts	2,312,021	(430,977)	(5,771,575)	(1,303,388)
Unrealized appreciation (depreciation) on investments,
futures contracts, options written, interest rate swaps and
translation of assets and liabilities in foreign currencies	4,274,310	468,988	(14,622,516)	629,379
Undistributed net investment income (loss)	1,048,812	10,021,670	1,593,153	1,806,481
Net assets	$152,387,501	$1,159,274,692	$477,013,826	$203,564,769
Investments, including repurchase agreements, at cost	$162,951,572	$1,496,888,257	$495,549,352	$354,172,681
Foreign currency, at cost	—	$1,350,210	—	—
Premium received on written options	—	$4,098,858	—	—

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$13,776,342	$117,807,255	$24,793,838	$42,904,461
Shares outstanding	1,259,130	8,547,580	1,957,750	3,156,386
Net asset value per share (net assets ÷ shares outstanding)	$10.94	$13.78	$12.66	$13.59
Class NAV
Net assets	$138,611,159	$1,041,467,437	$452,219,988	$160,660,308
Shares outstanding	12,711,120	75,725,529	35,668,361	11,845,409
Net asset value per share (net assets ÷ shares outstanding)	$10.90	$13.75	$12.68	$13.56

The accompanying notes are an integral part of the financial statements. 92

John Hancock Funds II

Statements of Assets and Liabilities — August 31, 2006


	U.S. High		Value &
Assets	Yield Bond	U.S. Multi Sector	Restructuring	Vista

Investments, at value	$269,178,034	$1,167,133,786	$292,724,205	$116,774,839
Securities loaned, at value (Note 2)	35,968,218	57,531,004	41,400,946	13,612,271
Repurchase agreements, at value	17,711,000	56,038,000	6,201,000	8,038,000
Cash	507	303	307	476
Cash segregated for futures contracts	—	1,956,096	—	—
Receivable for investments sold	4,870,725	—	—	4,169,056
Receivable for shares sold	222,729	214,373	29,539	26,082
Receivable for forward foreign currency exchange contracts (Note 2)	—	—	—	1,979
Dividends and interest receivable	5,343,194	2,299,789	381,527	19,878
Receivable for futures variation margin	—	13,750	—	—
Due from broker	—	993,904	—	—
Other assets	1,727	11,496	1,889	1,163
Total assets	333,296,134	1,286,192,501	340,739,413	142,643,744

Liabilities

Due to custodian	—	—	—	959,243
Payable for investments purchased	6,495,861	—	1,689,012	5,088,018
Payable for shares repurchased	1,398	—	—	—
Payable upon return of securities loaned (Note 2)	36,710,913	59,044,947	42,492,506	13,929,842
Payable for forward foreign currency exchange contracts (Note 2)	—	—	—	1,496
Payable to affiliates
Fund administration expenses	4,269	22,040	8,996	5,118
Other payables and accrued expenses	70,166	159,621	54,192	50,324
Total liabilities	43,282,607	59,226,608	44,244,706	20,034,041

Net assets

Capital paid-in	287,221,622	1,188,817,440	284,218,800	115,833,181
Accumulated undistributed net realized gain (loss) on investments,
futures contracts, options written, foreign currency transactions and
forward foreign currency contracts	(285,372)	4,358,689	1,103,581	(3,974,440)
Unrealized appreciation (depreciation) on investments,
futures contracts and translation of assets and
liabilities in foreign currencies	(747,561)	26,125,188	9,209,793	10,751,445
Undistributed net investment income (loss)	3,824,838	7,664,576	1,962,533	(483)
Net assets	$290,013,527	$1,226,965,893	$296,494,707	$122,609,703
Investments, including repurchase agreements, at cost	$323,604,813	$1,255,571,506	$331,116,707	$127,673,023

Net asset value per share

Based on net asset values and shares outstanding — The Funds have an unlimited number of shares authorized with no par value.
Class 1
Net assets	$1,814,164	—	—	—
Shares outstanding	138,976	—	—	—
Net asset value per share (net assets ÷ shares outstanding)	$13.05	—	—	—
Class NAV
Net assets	$288,199,363	$1,226,965,893	$296,494,707	$122,609,703
Shares outstanding	22,080,780	117,812,675	26,753,467	11,455,311
Net asset value per share (net assets ÷ shares outstanding)	$13.05	$10.41	$11.08	$10.70

The accompanying notes are an integral part of the financial statements. 93

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



Investment income	Absolute Return^a	Active Bond^b	All Cap Core^c	All Cap Growth^b

Dividends	—	$10,000	$1,545,874	$1,167,776
Interest	$3,520	16,552,387	505,346	175,694
Securities lending	—	107,981	8,336	21,611
Income distributions received from affiliated underlying funds	49,469	—	—	—
Less foreign taxes withheld	—	(1,006)	—	(18,323)
Total investment income	52,989	16,669,362	2,059,556	1,346,758

Expenses

Investment management fees (Note 3)	1,851	1,993,572	696,524	1,067,591
Class A distribution and service fees (Note 3)	694	—	—	—
Class B distribution and service fees (Note 3)	2,313	—	—	—
Class C distribution and service fees (Note 3)	2,313	—	—	—
Class 1 distribution and service fees (Note 3)	115	15,760	—	15,173
Fund administration fees (Note 3)	160	30,692	10,677	14,312
Audit and legal fees	27,650	62,483	28,742	42,355
Printing and postage fees	32	5,314	1,592	2,919
Custodian fees	2,013	190,654	13,386	44,829
Trustees’ fees (Note 3)	1	3,938	692	1,729
Registration and filing fees	2,777	13,222	10,049	2,522
Miscellaneous	87	30,887	1,825	2,769
Total expenses	40,006	2,346,522	763,487	1,194,199
Less expense reductions (Note 3)	(32,257)	—	—	—
Net expenses	7,749	2,346,522	763,487	1,194,199
Net investment income (loss)	45,240	14,322,840	1,296,069	152,559

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	—	(3,179,487)	(5,196,991)	(3,002,765)
Futures contracts	—	—	(3,023,136)	—
Foreign currency transactions	—	4,013	—	(1,144)
Change in net unrealized appreciation (depreciation) of
Investments	160,534	670,327	4,657,834	9,502,176
Futures contracts	—	—	612,775	—
Translation of assets and liabilities in foreign currencies	—	58	—	(860)
Net realized and unrealized gain (loss)	160,534	(2,505,089)	(2,949,518)	6,497,407

Increase (decrease) in net assets from operations	$205,774	$11,817,751	($1,653,449)	$6,649,966

^aPeriod from 6-26-06 (commencement of operations) to 8-31-06.
^bPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^cPeriod from 4-28-06 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 94

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006


		Blue Chip	Capital
Investment income	All Cap Value^a	Growth^a	Appreciation^a	Core Bond^a

Dividends	$2,716,701	$13,150,034	$2,497,681	—
Interest	200,149	476,983	438,358	7,639,517
Securities lending	6,836	165,539	52,155	3,903
Less foreign taxes withheld	(11,352)	(162,787)	(89,083)	(1,857)
Total investment income	2,912,334	13,629,769	2,899,111	7,641,563

Expenses

Investment management fees (Note 3)	1,361,949	7,797,684	2,309,140	1,009,020
Class 1 distribution and service fees (Note 3)	8,264	57,505	15,920	197
Fund administration fees (Note 3)	15,225	86,664	24,419	17,770
Audit and legal fees	43,302	65,591	45,900	52,200
Printing and postage fees	3,354	17,602	4,681	2,801
Custodian fees	35,470	151,219	42,881	137,254
Trustees’ fees	2,127	12,159	3,174	1,872
Registration and filing fees	4,274	37,849	14,031	5,243
Miscellaneous	3,297	23,686	10,745	21,720
Total expenses	1,477,262	8,249,959	2,470,891	1,248,077
Less expense reductions (Note 3)	—	(158,836)	—	—
Net expenses	1,477,262	8,091,123	2,470,891	1,248,077
Net investment income (loss)	1,435,072	5,538,646	428,220	6,393,486

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments (Note 5)	5,826,940	(3,928,748)	(17,467,941)	(1,818,731)
Foreign currency transactions	—	112,639	36,980	—
Change in net unrealized appreciation (depreciation) of
Investments	16,725,292	70,967,538	8,657,835	869,346
Translation of assets and liabilities in foreign currencies	—	3,481	12	—
Net realized and unrealized gain (loss)	22,552,232	67,154,910	(8,773,114)	(949,385)

Increase (decrease) in net assets from operations	$23,987,304	$72,693,556	($8,344,894)	$5,444,101

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 95

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



		Emerging	Emerging Small
Investment income	Core Equity^a	Growth^a	Company^a	Equity-Income^a

Dividends	$3,356,972	$386,874	$233,358	$15,596,385
Interest	248,262	476,927	37,029	1,436,031
Securities lending	—	204,166	—	44,266
Less foreign taxes withheld	—	—	(284)	(97,551)
Total investment income	3,605,234	1,067,967	270,103	16,979,131

Expenses

Investment management fees (Note 3)	3,425,926	1,183,968	492,869	5,312,140
Class 1 distribution and service fees (Note 3)	3,825	55,258	24,196	74,395
Fund administration fees (Note 3)	45,375	41,450	33,603	72,128
Audit and legal fees	50,482	56,223	40,705	58,573
Printing and postage fees	7,774	44,665	1,606	13,746
Custodian fees	66,660	29,182	33,968	103,359
Trustees’ fees (Note 3)	5,326	2,361	778	9,161
Registration and filing fees	16,620	1,959	688	14,517
Miscellaneous	8,912	14,937	1,336	17,745
Total expenses	3,630,900	1,430,003	629,749	5,675,764
Less expense reductions (Note 3)	—	—	(82,214)	(108,998)
Net expenses	3,630,900	1,430,003	547,535	5,566,766
Net investment income (loss)	(25,666)	(362,036)	(277,432)	11,412,365

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments (Note 5)	3,465,352	32,077,945	5,329,331	31,298,726
Futures contracts	—	(642,616)	—	—
Foreign currency transactions	6,994	—	—	2,088
Change in net unrealized appreciation (depreciation) of
Investments	6,670,383	(15,348,460)	(3,974,924)	56,205,455
Translation of assets and liabilities in foreign currencies	296	—	—	—
Net realized and unrealized gain (loss)	10,143,025	16,086,869	1,354,407	87,506,269

Increase (decrease) in net assets from operations	$10,117,359	$15,724,833	$1,076,975	$98,918,634

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 96

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



Investment income	Fundamental Value^a	Global Bond^a	Global Real Estate^b	High Income^b

Dividends	$8,463,367	—	$3,319,177	$427,568
Interest	1,884,463	$19,923,339	123,347	6,629,800
Securities lending	18,469	2,534	17,432	68,316
Less foreign taxes withheld	(62,142)	(45,201)	(323,940)	(60,706)
Total investment income	10,304,157	19,880,672	3,136,016	7,064,978

Expenses

Investment management fees (Note 3)	4,358,268	3,204,729	1,054,022	630,943
Class 1 distribution and service fees (Note 3)	25,295	17,044	—	—
Fund administration fees (Note 3)	50,116	43,907	13,254	11,080
Audit and legal fees	54,115	68,598	29,349	38,270
Printing and postage fees	10,229	8,642	1,988	1,650
Custodian fees	104,635	240,278	126,904	27,673
Trustees’ fees (Note 3)	6,915	5,745	856	719
Registration and filing fees	19,571	15,432	12,520	10,207
Miscellaneous	10,736	42,231	3,998	3,895
Total expenses	4,639,880	3,646,606	1,242,891	724,437

Net investment income (loss)	5,664,277	16,234,066	1,893,125	6,340,541

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	4,881,179	(2,207,560)	(8,966,008)	(552,367)
Futures contracts	—	(6,435,817)	—	—
Options written	—	996,504	—	—
Interest rate swap contracts	—	1,328,766	—	—
Foreign currency transactions	(63,448)	(152,556)	3,435,312	(1,620)
Change in net unrealized appreciation (depreciation) of
Investments	45,750,775	5,058,984	15,747,234	(5,837,501)
Futures contracts	—	3,616,049	—	—
Options written	—	(532,827)	—	41,554
Interest rate swap contracts	—	(58,762)	—	—
Translation of assets and liabilities in foreign currencies	293	(597,185)	(621,150)	(184,101)
Net realized and unrealized gain (loss)	50,568,799	1,015,596	9,595,388	(6,534,035)

Increase (decrease) in net assets from operations	$56,233,076	$17,249,662	$11,488,513	($193,494)

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 4-28-06 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 97

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



		International	International	International
Investment income	High Yield^a	Equity Index^b	Opportunities^a	Small Cap^a

Dividends	$126,778	$6,352,470	$6,675,683	$10,363,425
Interest	88,328,640	294,063	503,829	840,943
Securities lending	778,067	158,328	202,615	199,324
Less foreign taxes withheld	(60,152)	(473,961)	(583,263)	(1,168,386)
Total investment income	89,173,333	6,330,900	6,798,864	10,235,306

Expenses

Investment management fees (Note 3)	7,302,813	1,006,407	3,501,613	3,650,938
Class 1 distribution and service fees (Note 3)	17,540	—	1,474	15,239
Fund administration fees (Note 3)	106,194	15,960	34,520	39,001
Audit and legal fees	80,425	41,867	49,963	51,894
Printing and postage fees	20,303	2,691	6,303	7,578
Custodian fees	301,217	13,515	356,092	684,294
Trustees’ fees (Note 3)	14,709	2,089	4,407	5,467
Registration and filing fees	34,740	9,369	15,114	8,805
Miscellaneous	24,144	3,075	8,047	38,702
Total expenses	7,902,085	1,094,973	3,977,533	4,501,918

Net investment income (loss)	81,271,248	5,235,927	2,821,331	5,733,388

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments (Note 5)	9,379,053	2,145,902	18,650,706	51,813,331
Futures contracts	—	460,074	—	—
Foreign currency transactions	(40,075)	(274,000)	(229,471)	4,172
Change in net unrealized appreciation (depreciation) of
Investments	(7,835,316)	29,141,546	67,543,296	28,777,726^c
Futures contracts	—	608,774	—	—
Translation of assets and liabilities in foreign currencies	41,284	86,605	2,055	(114,442)
Net realized and unrealized gain (loss)	1,544,946	32,168,901	85,966,586	80,480,787

Increase (decrease) in net assets from operations	$82,816,194	$37,404,828	$88,787,917	$86,214,175

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.
^cNet of $242,277 in deferred foreign withholding taxes for International Small Cap.

The accompanying notes are an integral part of the financial statements. 98

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006


	International	International	International	Investment
Investment income	Small Company^a	Stock^d	Value^d	Quality Bond^d

Dividends	$1,747,584	$27,244,272	$34,053,340	—
Interest	77,125	1,260,117	1,175,015	5,353,505
Securities lending	37,146	710,004	660,210	4,245
Less foreign taxes withheld	(72,224)	(2,099,182)	(2,256,320)	(1,750)
Total investment income	1,789,631	27,115,211	33,632,245	5,356,000

Expenses

Investment management fees (Note 3)	691,238	7,178,612	6,610,387	606,718
Class 1 distribution and service fees (Note 3)	—	15,716	51,118	14,495
Fund administration fees (Note 3)	9,592	72,282	79,742	10,766
Audit and legal fees	29,817	61,570	63,197	51,008
Printing and postage fees	1,244	13,368	15,385	2,192
Custodian fees	70,411	913,267	936,296	119,870
Trustees’ fees (Note 3)	550	9,595	10,508	1,367
Registration and filing fees	8,388	29,650	21,159	5,490
Miscellaneous	3,392	17,580	19,929	2,965
Total expenses	814,632	8,311,640	7,807,721	814,871
Less expense reductions (Note 3)	—	—	(136,471)	—
Net expenses	814,632	8,311,640	7,671,250	814,871
Net investment income (loss)	974,999	18,803,571	25,960,995	4,541,129

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	(7,585,481)^b	157,552,267^e	49,679,104	(247,736)
Futures contracts	—	3,407,262	—	(41,598)
Foreign currency transactions	(199,688)	1,191,895	907,753	—
Change in net unrealized appreciation (depreciation) of
Investments	(6,755,293)^c	13,557,516	105,427,446	(811,753)
Futures contracts	—	126,403	—	(50,898)
Translation of assets and liabilities in foreign currencies	1,374	(18,278)	37,456	—
Net realized and unrealized gain (loss)	(14,539,088)	175,817,065	156,051,759	(1,151,985)

Increase (decrease) in net assets from operations	($13,564,089)	$194,620,636	$182,012,754	$3,389,144

^aPeriod from 4-28-06 (commencement of operations) to 8-31-06.
^bNet of foreign taxes of $31,306 for International Small Company.
^cNet of $1,892 in deferred foreign withholding taxes for International Small Company.
^dPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^eRefer to Merger of International Stock Fund footnote 1.

The accompanying notes are an integral part of the financial statements. 99

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



Investment income	Large Cap^a	Large Cap Value^a	Mid Cap Core^a	Mid Cap Index^b

Dividends	$2,466,959	$2,969,910	$3,311,697	$1,175,635
Interest	164,509	81,193	1,761,752	259,100
Securities lending	2,206	4,811	11,951	2,780
Less foreign taxes withheld	—	—	(28,729)	—
Total investment income	2,633,674	3,055,914	5,056,671	1,437,515

Expenses

Investment management fees (Note 3)	1,179,335	1,388,690	2,330,858	407,633
Class 1 distribution and service fees (Note 3)	618	9,860	3,797	—
Fund administration fees (Note 3)	13,699	17,045	27,652	6,413
Audit and legal fees	42,435	42,565	46,231	38,989
Printing and postage fees	2,393	2,645	4,578	1,054
Custodian fees	21,737	22,020	66,477	10,148
Trustees’ fees (Note 3)	1,710	1,733	3,446	770
Registration and filing fees	5,305	10,417	8,823	5,506
Miscellaneous	3,045	4,210	6,017	2,191
Total expenses	1,270,277	1,499,185	2,497,879	472,704
Less expense reductions (Note 3)	—	—	—	(1,219)
Net expenses	1,270,277	1,499,185	2,497,879	471,485
Net investment income (loss)	1,363,397	1,556,729	2,558,792	966,030

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	2,932,504	(1,478,897)	11,819,064	806,547
Futures contracts	181,577	—	—	(716,035)
Foreign currency transactions	—	—	185,522	—
Change in net unrealized appreciation (depreciation) of
Investments	9,634,421	17,901,225	13,277,807	(2,101,231)
Futures contracts	—	—	—	232,383
Translation of assets and liabilities in foreign currencies	—	—	(586)	—
Net realized and unrealized gain (loss)	12,748,502	16,422,328	25,281,807	(1,778,336)

Increase (decrease) in net assets from operations	$14,111,899	$17,979,057	$27,840,599	($812,306)

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 100

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006


	Mid Cap	Mid Cap	Mid Cap	Natural
Investment income	Stock^a	Value^a	Value Equity^b	Resources^a

Dividends	$928,914	$2,233,833	$514,772	$11,835,732
Interest	536,027	300,008	49,758	1,188,447
Securities lending	80,684	10,130	3,863	456,566
Less foreign taxes withheld	(18,988)	(3,393)	(1,907)	(407,464)
Total investment income	1,526,637	2,540,578	566,486	13,073,281

Expenses

Investment management fees (Note 3)	1,961,977	1,341,196	267,535	5,990,651
Class 1 distribution and service fees (Note 3)	44,627	38,297	—	27,442
Fund administration fees (Note 3)	24,039	16,600	3,693	53,977
Audit and legal fees	45,319	43,771	27,128	55,065
Printing and postage fees	4,758	3,800	549	10,674
Custodian fees	71,702	37,938	16,084	234,927
Trustees’ fees (Note 3)	3,035	2,422	240	7,417
Registration and filing fees	6,097	1,797	3,667	17,435
Miscellaneous	5,482	3,820	761	13,698
Total expenses	2,167,036	1,489,641	319,657	6,411,286

Net investment income (loss)	(640,399)	1,050,937	246,829	6,661,995

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments (Note 5)	15,207,277	5,252,528	(888,295)	28,671,223
Futures contracts	—	—	—	4,274,761
Foreign currency transactions	(18,742)	—	15	76,604
Change in net unrealized appreciation (depreciation) of
Investments	16,417,475	8,839,164	(2,465,018)	114,038,962
Translation of assets and liabilities in foreign currencies	168	—	47	(4,006)
Net realized and unrealized gain (loss)	31,606,178	14,091,692	(3,353,251)	147,057,544

Increase (decrease) in net assets from operations	$30,965,779	$15,142,629	($3,106,422)	$153,719,539

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 4-28-06 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 101

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



	Quantitative	Quantitative	Quantitative	Real Estate
Investment income	All Cap^a	Mid Cap^b	Value^b	Equity^c

Dividends	9,729	$1,350,721	$7,669,457	$2,738,339
Interest	3,536	171,349	194,843	130,659
Securities lending	—	18,066	50,556	2,714
Less foreign taxes withheld	(10)	(767)	(2,832)	(3,930)
Total investment income	13,255	1,539,369	7,912,024	2,867,782

Expenses

Investment management fees (Note 3)	3,295	1,165,041	2,222,866	755,255
Class A distribution and service fees (Note 3)	348	—	—	—
Class B distribution and service fees (Note 3)	1,162	—	—	—
Class C distribution and service fees (Note 3)	1,162	—	—	—
Class 1 distribution and service fees (Note 3)	—	60,479	39,356	—
Fund administration fees (Note 3)	54	15,065	28,833	10,478
Audit and legal fees	22,465	43,409	47,706	28,706
Printing and postage fees	31	3,675	6,875	1,571
Custodian fees	1,013	21,300	48,166	12,212
Trustees’ fees (Note 3)	1	2,200	4,101	677
Registration and filing fees	176	3,268	8,471	9,309
Miscellaneous	24	4,763	12,522	4,908
Total expenses	29,731	1,319,200	2,418,896	823,116
Less expense reductions (Note 3)	(23,320)	—	—	(16,911)
Net expenses	6,411	1,319,200	2,418,896	806,205
Net investment income	6,844	220,169	5,493,128	2,061,577

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	6,261	(2,725,612)	20,841,210	1,344,206
Change in net unrealized appreciation of
Investments	41,732	9,969,387	29,110,362	22,030,725
Net realized and unrealized gain	47,993	7,243,775	49,951,572	23,374,931

Increase in net assets from operations	$54,837	$7,463,944	$55,444,700	$25,436,508

^aPeriod from 7-28-06 (commencement of operations) to 8-31-06.
^bPeriod from 10-15-05 (commencement of operations) to 8-31-06
^cPeriod from 4-28-06 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 102

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006


Investment income	Real Estate Securities^a	Real Return Bond^a	Small Cap^a	Small Cap Index^b

Dividends	$14,621,746	—	$621,417	$790,818
Interest	228,107	$29,340,391	178,399	225,363
Securities lending	12,260	13,990	338,319	16,423
Less foreign taxes withheld	(3,481)	—	—	(341)
Total investment income	14,858,632	29,354,381	1,138,135	1,032,263

Expenses

Investment management fees (Note 3)	2,822,723	3,735,458	1,508,791	337,795
Class 1 distribution and service fees (Note 3)	63,532	6,833	199	—
Fund administration fees (Note 3)	38,102	46,528	17,824	6,532
Audit and legal fees	52,320	70,153	44,122	38,847
Printing and postage fees	10,075	9,039	3,143	963
Custodian fees	49,089	104,129	25,735	10,145
Trustees’ fees (Note 3)	6,220	6,371	2,173	740
Registration and filing fees	26,147	24,813	6,314	4,364
Miscellaneous	18,608	25,054	3,895	1,570
Total expenses	3,086,816	4,028,378	1,612,196	400,956
Less expense reductions (Note 3)	—	—	—	(10,729)
Net expenses	3,086,816	4,028,378	1,612,196	390,227
Net investment income (loss)	11,771,816	25,326,003	(474,061)	642,036

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	76,579,811	(4,987,783)	(1,290,852)	3,299,512
Futures contracts	—	2,251,463	—	62,562
Options written	—	503,409	—	—
Interest rate swap contracts	—	(2,585,201)	—	—
Foreign currency transactions	—	(1,516,472)	—	—
Change in net unrealized appreciation (depreciation) of
Investments	32,841,754	(462,703)	8,031,744	1,016,288
Futures contracts	—	(698,331)	—	199,152
Options written	—	(49,806)	—	—
Interest rate swap contracts	—	1,808,198	—	—
Translation of assets and liabilities in foreign currencies	—	(670,507)	—	—
Net realized and unrealized gain (loss)	109,421,565	(6,407,733)	6,740,892	4,577,514

Increase (decrease) in net assets from operations	$121,193,381	$18,918,270	$6,266,831	$5,219,550

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 103

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



	Small Cap	Small	Small Company	Small Company
Investment income	Opportunities^a	Company^a	Growth^b	Value^a

Dividends	$3,976,479	$655,539	$104,403	$4,169,110
Interest	273,516	23,887	72,406	498,122
Securities lending	105,912	19,661	—	80,852
Less foreign taxes withheld	(6,487)	(215)	(49)	—
Total investment income	4,349,420	698,872	176,760	4,748,084

Expenses

Investment management fees (Note 3)	2,050,099	740,735	538,487	3,103,883
Class 1 distribution and service fees (Note 3)	12,006	2,597	—	62,990
Fund administration fees (Note 3)	20,850	7,866	5,665	29,050
Audit and legal fees	44,596	40,506	39,150	47,328
Printing and postage fees	3,979	1,210	842	6,221
Custodian fees	31,966	124,366	27,149	40,643
Trustees’ fees (Note 3)	2,720	857	679	3,950
Registration and filing fees	17,776	2,828	2,256	11,948
Miscellaneous	4,581	1,780	1,617	8,460
Total expenses	2,188,573	922,745	615,845	3,314,473
Less expense reductions (Note 3)	—	—	—	(80,667)
Net expenses	2,188,573	922,745	615,845	3,233,806
Net investment income (loss)	2,160,847	(223,873)	(439,085)	1,514,278

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	6,633,553	(349,401)	1,671,495	2,995,867
Foreign currency transactions	(156)	—	(3)	—
Change in net unrealized appreciation (depreciation) of
Investments	15,182,294	1,321,814	4,880,900	32,157,056
Net realized and unrealized gain (loss)	21,815,691	972,413	6,552,392	35,152,923

Increase (decrease) in net assets from operations	$23,976,538	$748,540	$6,113,307	$36,667,201

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 104

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006


Investment income	Special Value^a	Spectrum Income^b	Strategic Bond^a	Strategic Income^c

Dividends	$1,048,002	$2,644,133	$2,671	$15,991
Interest	314,193	25,140,578	19,940,540	4,645,244
Securities lending	56,650	42,961	99,253	14,209
Less foreign taxes withheld	—	(35,012)	(1,023)	(36,627)
Total investment income	1,418,845	27,792,660	20,041,441	4,638,817

Expenses

Investment management fees (Note 3)	925,399	4,104,485	2,413,625	642,275
Class 1 distribution and service fees (Note 3)	1,342	—	17,194	—
Fund administration fees (Note 3)	8,882	50,517	36,765	10,827
Audit and legal fees	41,053	62,116	59,657	38,212
Printing and postage fees	1,473	8,510	8,161	1,613
Custodian fees	23,416	870,671	180,376	64,923
Trustees’ fees (Note 3)	1,092	6,796	5,420	702
Registration and filing fees	3,918	28,134	6,325	9,840
Miscellaneous	1,649	14,181	17,001	21,673
Total expenses	1,008,224	5,145,410	2,744,524	790,065
Less expense reductions (Note 3)	—	(74,483)	—	—
Net expenses	1,008,224	5,070,927	2,744,524	790,065
Net investment income (loss)	410,621	22,721,733	17,296,917	3,848,752

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	910,254	(7,800)	(4,573,911)	(460,785)
Futures contracts	—	60,265	(585,829)	—
Options written	—	—	278,216	—
Foreign currency transactions	—	584,992	(5,869)	1,370,260
Change in net unrealized appreciation (depreciation) of
Investments	7,424,159	11,804,112	3,856,120	861,836
Futures contracts	—	(18,082)	(1,264,739)	—
Options written	—	—	(13,982)	—
Translation of assets and liabilities in foreign currencies	—	(134,913)	(6)	(1,974,159)
Net realized and unrealized gain (loss)	8,334,413	12,288,574	(2,310,000)	(202,848)

Increase (decrease) in net assets from operations	$8,745,034	$35,010,307	$14,986,917	$3,645,904

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.
^cPeriod from 4-28-06 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 105

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006



			U.S. Global	U.S. Government
Investment income	Strategic Value^a	Total Return^a	Leaders Growth^a	Securities^a

Dividends	$2,190,396	—	$4,194,238	—
Interest	120,331	$41,945,745	220,338	$7,423,824
Securities lending	3,142	311	5,160	—
Less foreign taxes withheld	—	—	(14,064)	—
Total investment income	2,313,869	41,946,056	4,405,672	7,423,824

Expenses

Investment management fees (Note 3)	973,699	6,231,441	2,448,474	1,032,998
Class 1 distribution and service fees (Note 3)	5,768	49,340	10,226	19,925
Fund administration fees (Note 3)	10,975	78,340	35,135	15,580
Audit and legal fees	41,728	80,155	47,934	53,107
Printing and postage fees	2,040	15,628	5,911	3,917
Custodian fees	23,341	295,682	33,136	88,713
Trustees’ fees (Note 3)	1,408	10,879	4,031	2,348
Registration and filing fees	3,997	33,609	14,619	5,504
Miscellaneous	2,220	67,545	6,990	13,267
Total expenses	1,065,176	6,862,619	2,606,456	1,235,359

Net investment income (loss)	1,248,693	35,083,437	1,799,216	6,188,465

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	2,312,021	(26,541)	(5,771,575)	(1,112,306)
Futures contracts	—	(1,372,617)	—	111,400
Options written	—	985,044	—	—
Interest rate swap contracts	—	285,222	—	—
Foreign currency transactions	—	1,419,640	—	—
Change in net unrealized appreciation (depreciation) of
Investments	4,274,310	5,643,277	(14,622,516)	640,465
Futures contracts	—	(1,580,431)	—	(11,086)
Options written	—	(2,179,782)	—	—
Interest rate swap contracts	—	102,020	—	—
Translation of assets and liabilities in foreign currencies	—	(1,516,096)	—	—
Net realized and unrealized gain (loss)	6,586,331	1,759,736	(20,394,091)	(371,527)

Increase (decrease) in net assets from operations	$7,835,024	$36,843,173	($18,594,875)	$5,816,938

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 106

John Hancock Funds II

Statements of Operations — for the period ended August 31, 2006


	U.S. High	U.S. Multi	Value &
Investment income	Yield Bond^a	Sector^b	Restructuring^b	Vista^b

Dividends	—	$15,001,116	$3,807,276	$708,929
Interest	$13,764,385	1,459,617	167,296	77,663
Securities lending	46,404	40,452	36,421	21,795
Less foreign taxes withheld	(11,278)		(34,605)	(3,478)
Total investment income	13,799,511	16,501,185	3,976,388	804,909

Expenses

Investment management fees (Note 3)	1,287,281	6,923,232	1,514,336	821,661
Class 1 distribution and service fees (Note 3)	349		—	—
Fund administration fees (Note 3)	14,022	83,451	19,535	11,299
Audit and legal fees	52,261	65,147	42,058	40,174
Printing and postage fees	2,824	14,118	2,510	1,416
Custodian fees	61,836	240,474	31,845	57,504
Trustees’ fees (Note 3)	1,825	11,333	1,933	1,138
Registration and filing fees	8,155	41,693	14,344	3,866
Miscellaneous	7,733	19,541	3,130	3,030
Total expenses	1,436,286	7,398,989	1,629,691	940,088

Net investment income (loss)	12,363,225	9,102,196	2,346,697	(135,179)

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	(96,841)	3,873,645	958,144	(3,989,289)
Futures contracts	—	485,293	—	—
Options written	—	—	144,796	—
Foreign currency transactions	—	(16,742)	17,551	(154,069)
Change in net unrealized appreciation (depreciation) of
Investments	(747,561)	25,131,284	9,209,444	10,752,087
Futures contracts	—	993,904	—	—
Translation of assets and liabilities in foreign currencies	—	—	349	(642)
Net realized and unrealized gain (loss)	(844,402)	30,467,384	10,330,284	6,608,087

Increase (decrease) in net assets from operations	$11,518,823	$39,569,580	$12,676,981	$6,472,908

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 107

John Hancock Funds II

Statements of Changes in Net Assets



	Absolute Return	Active Bond	All Cap Core
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06^a	8-31-06^b	8-31-06^c

From operations
Net investment income (loss)	$45,240	$14,322,840	$1,296,069
Net realized gain (loss)	—	(3,175,474)	(8,220,127)
Change in net unrealized appreciation (depreciation)	160,534	670,385	5,270,609
Increase (decrease) in net assets resulting from operations	205,774	11,817,751	(1,653,449)
Distributions to shareholders
From net investment income
Class A	—	—	—
Class B	—	—	—
Class C	—	—	—
Class 1	—	(954,551)	—
Class NAV	—	(10,220,932)	—
	—	(11,175,483)	—
From Fund share transactions	5,000,000	435,912,775	285,676,890

Net assets

Beginning of period	—	—	—
End of period	$5,205,774	$436,555,043	$284,023,441
Undistributed net investment income (loss)	$50,675	$3,593,004	$1,289,516

	All Cap Growth	All Cap Value	Blue Chip Growth
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^d	8-31-06 ^d	8-31-06 ^d

From operations
Net investment income (loss)	$152,559	$1,435,072	$5,538,646
Net realized gain (loss)	(3,003,909)	5,826,940	(3,816,109)
Change in net unrealized appreciation (depreciation)	9,501,316	16,725,292	70,971,019
Increase (decrease) in net assets resulting from operations	6,649,966	23,987,304	72,693,556
Distributions to shareholders
From net investment income
Class 1	(15,666)	(29,388)	(96,099)
Class NAV	(49,558)	(268,692)	(798,874)
	(65,224)	(298,080)	(894,973)
From Fund share transactions	148,386,145	192,472,577	1,201,052,205

Net assets

Beginning of period	—	—	—
End of period	$154,970,887	$216,161,801	$1,272,850,788
Undistributed net investment income (loss)	$90,754	$1,139,300	$4,776,090

^aPeriod from 6-26-06 (commencement of operations) to 8-31-06.
^bClass 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.
^cPeriod from 4-28-06 (commencement of operations) to 8-31-06.
^dPeriod from 10-15-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 108

John Hancock Funds II

Statements of Changes in Net Assets


	Capital Appreciation	Core Bond	Core Equity
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$428,220	$6,393,486	($25,666)
Net realized gain (loss)	(17,430,961)	(1,818,731)	3,472,346
Change in net unrealized appreciation (depreciation)	8,657,847	869,346	6,670,679
Increase (decrease) in net assets resulting from operations	(8,344,894)	5,444,101	10,117,359
Distributions to shareholders
From net investment income
Class 1	—	(16,947)	—
Class NAV	—	(4,956,804)	—
	—	(4,973,751)	—
From Fund share transactions	468,589,763	197,919,446	586,022,092

Net assets

Beginning of period	—	—	—
End of period	$460,244,869	$198,389,796	$596,139,451
Undistributed net investment income (loss)	$467,182	$1,657,673	$97

	Emerging Growth	Emerging Small Company	Equity-Income
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	($362,036)	($277,432)	$11,412,365
Net realized gain (loss)	31,435,329	5,329,331	31,300,814
Change in net unrealized appreciation (depreciation)	(15,348,460)	(3,974,924)	56,205,455
Increase (decrease) in net assets resulting from operations	15,724,833	1,076,975	98,918,634
Distributions to shareholders
From net investment income
Class 1	—	—	(612,671)
Class NAV	—	—	(2,371,194)
	—	—	(2,983,865)
From Fund share transactions	155,929,854	50,741,810	622,862,224

Net assets

Beginning of period	—	—	—
End of period	$171,654,687	$51,818,785	$718,796,993
Undistributed net investment income (loss)	—	—	$8,435,232

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 109

John Hancock Funds II

Statements of Changes in Net Assets



	Fundamental Value	Global Bond	Global Real Estate
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^b

From operations
Net investment income (loss)	$5,664,277	$16,234,066	$1,893,125
Net realized gain (loss)	4,817,731	(6,470,663)	(5,530,696)
Change in net unrealized appreciation (depreciation)	45,751,068	7,486,259	15,126,084
Increase (decrease) in net assets resulting from operations	56,233,076	17,249,662	11,488,513
Distributions to shareholders
From net investment income
Class 1	(109,544)	(227,540)	—
Class NAV	(1,226,769)	(2,800,652)	—
	(1,336,313)	(3,028,192)	—
From Fund share transactions	706,526,990	580,776,467	343,735,965

Net assets

Beginning of period	—	—	—
End of period	$761,423,753	$594,997,937	$355,224,478
Undistributed net investment income (loss)	$4,271,133	$9,492,882	$5,016,543

	High Income	High Yield	International Equity Index
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^b	8-31-06 ^a	8-31-06 ^c

From operations
Net investment income (loss)	$6,340,541	$81,271,248	$5,235,927
Net realized gain (loss)	(553,987)	9,338,978	2,331,976
Change in net unrealized appreciation (depreciation)	(5,980,048)	(7,794,032)	29,836,925
Increase (decrease) in net assets resulting from operations	(193,494)	82,816,194	37,404,828
Distributions to shareholders
From net investment income
Class 1	—	(2,373,236)	—
Class NAV	(3,127,218)	(67,041,478)	(2,080,681)
	(3,127,218)	(69,414,714)	(2,080,681)
From Fund share transactions	292,379,947	1,174,694,020	272,434,870

Net assets

Beginning of period	—	—	—
End of period	$289,059,235	$1,188,095,500	$307,759,017
Undistributed net investment income (loss)	$3,490,060	$15,619,891	$2,881,246

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 4-28-06 (commencement of operations) to 8-31-06.
^cPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 110

John Hancock Funds II

Statements of Changes in Net Assets


	International Opportunities	International Small Cap	International Small Company
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^b

From operations
Net investment income (loss)	$2,821,331	$5,733,388	$974,999
Net realized gain (loss)	18,421,235	51,817,503	(7,785,169)
Change in net unrealized appreciation (depreciation)	67,545,351	28,663,284	(6,753,919)
Increase (decrease) in net assets resulting from operations	88,787,917	86,214,175	(13,564,089)
Distributions to shareholders
From net investment income
Class 1	(42,136)	(59,757)	—
Class NAV	(18,582,164)	(1,022,670)	—
	(18,624,300)	(1,082,427)	—
From Fund share transactions	490,997,093	310,733,342	234,475,079

Net assets

Beginning of period	—	—	—
End of period	$561,160,710	$395,865,090	$220,910,990
Undistributed net investment income (loss)	$19,725	$4,659,236	$845,678

	International Stock	International Value	Investment Quality Bond
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$18,803,571	$25,960,995	$4,541,129
Net realized gain (loss)	162,151,424	50,586,857	(289,334)
Change in net unrealized appreciation (depreciation)	13,665,641	105,464,902	(862,651)
Increase (decrease) in net assets resulting from operations	194,620,636	182,012,754	3,389,144
Distributions to shareholders
From net investment income
Class 1	(619,551)	(353,039)	(1,074,307)
Class NAV ^c	(19,349,670)	(2,875,449)	(2,811,572)
From net realized gain
Class 1	(2,530,723)	—	—
Class NAV ^c	(32,850,704)	—	—
	(55,350,648)	(3,228,488)	(3,885,879)
From Fund share transactions	(59,950,147)	791,306,845	128,744,170

Net assets

Beginning of period	—	—	—
End of period	$79,319,841	$970,091,111	$128,247,435
Undistributed net investment income (loss)	$2,666,496	$23,653,961	$1,197,991

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 4-28-06 (commencement of operations) to 8-31-06.
^cClass NAV shares of International Stock were terminated on 8-29-06.

The accompanying notes are an integral part of the financial statements. 111

John Hancock Funds II

Statements of Changes in Net Assets



	Large Cap	Large Cap Value	Mid Cap Core
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$1,363,397	$1,556,729	$2,558,792
Net realized gain (loss)	3,114,081	(1,478,897)	12,004,586
Change in net unrealized appreciation (depreciation)	9,634,421	17,901,225	13,277,221
Increase (decrease) in net assets resulting from operations	14,111,899	17,979,057	27,840,599
Distributions to shareholders
From net investment income
Class 1	(1,427)	(24,236)	(8,276)
Class NAV	(212,012)	(293,006)	(374,238)
	(213,439)	(317,242)	(382,514)
From Fund share transactions	179,904,602	321,851,954	278,213,010

Net assets

Beginning of period	—	—	—
End of period	$193,803,062	$339,513,769	$305,671,095
Undistributed net investment income (loss)	$1,150,049	$1,242,158	$2,362,915

	Mid Cap Index	Mid Cap Stock	Mid Cap Value
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^b	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$966,030	($640,399)	$1,050,937
Net realized gain (loss)	90,512	15,188,535	5,252,528
Change in net unrealized appreciation (depreciation)	(1,868,848)	16,417,643	8,839,164
Increase (decrease) in net assets resulting from operations	(812,306)	30,965,779	15,142,629
Distributions to shareholders
From net investment income
Class 1	—	—	(129,841)
Class NAV	(98,937)	(8,555)	(193,677)
From net realized gain
Class 1	—	(110,835)	(26,180)
Class NAV	—	(186,450)	(37,303)
	(98,937)	(305,840)	(387,001)
From Fund share transactions	173,066,736	270,209,839	128,429,015

Net assets

Beginning of period	—	—	—
End of period	$172,155,493	$300,869,778	$143,184,643
Undistributed net investment income (loss)	$825,119	—	$737,063

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 112

John Hancock Funds II

Statements of Changes in Net Assets


	Mid Cap Value Equity	Natural Resources	Quantitative All Cap
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^b	8-31-06 ^c

From operations
Net investment income (loss)	$246,829	$6,661,995	$6,844
Net realized gain (loss)	(888,280)	33,022,588	6,261
Change in net unrealized appreciation (depreciation)	(2,464,971)	114,034,956	41,732
Increase (decrease) in net assets resulting from operations	(3,106,422)	153,719,539	54,837
Distributions to shareholders
From net investment income
Class 1	—	(51,094)	—
Class NAV	—	(691,085)	—
	—	(742,179)	—
From Fund share transactions	101,230,202	619,966,691	5,000,000

Net assets

Beginning of period	—	—	—
End of period	$98,123,780	$772,944,051	$5,054,837
Undistributed net investment income (loss)	$230,465	$6,002,486	$9,516

	Quantitative Mid Cap	Quantitative Value	Real Estate Equity
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^d	8-31-06 ^b	8-31-06 ^a

From operations
Net investment income (loss)	$220,169	$5,493,128	$2,061,577
Net realized gain (loss)	(2,725,612)	20,841,210	1,344,206
Change in net unrealized appreciation (depreciation)	9,969,387	29,110,362	22,030,725
Increase (decrease) in net assets resulting from operations	7,463,944	55,444,700	25,436,508
Distributions to shareholders
From net investment income
Class 1	(19,536)	(305,249)	—
Class NAV	(8,107)	(884,370)	—
From net realized gain
Class 1	(47,665)	(11,546)	—
Class NAV	(14,289)	(33,123)	—
	(89,597)	(1,234,288)	—
From Fund share transactions	175,809,916	403,906,768	249,457,958

Net assets

Beginning of period	—	—	—
End of period	$183,184,263	$458,117,180	$274,894,466
Undistributed net investment income (loss)	$209,085	$4,286,265	$1,515,505

^aPeriod from 4-28-06 (commencement of operations) to 8-31-06.
^bPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^cPeriod from 7-28-06 (commencement of operations) to 8-31-06.
^dClass 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.

The accompanying notes are an integral part of the financial statements. 113

John Hancock Funds II

Statements of Changes in Net Assets



	Real Estate Securities	Real Return Bond	Small Cap
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$11,771,816	$25,326,003	($474,061)
Net realized gain (loss)	76,579,811	(6,334,584)	(1,290,852)
Change in net unrealized appreciation (depreciation)	32,841,754	(73,149)	8,031,744
Increase (decrease) in net assets resulting from operations	121,193,381	18,918,270	6,266,831
Distributions to shareholders
From net investment income
Class 1	(836,666)	(463,414)	—
Class NAV ^b	(3,237,864)	(19,110,091)	—
From net realized gain
Class 1	(156,925)	(3,746)	—
Class NAV ^b	(598,547)	(140,598)	—
	(4,830,002)	(19,717,849)	—
From Fund share transactions	54,198,256	702,596,985	234,324,408

Net assets

Beginning of period	—	—	—
End of period	$170,561,635	$701,797,406	$240,591,239
Undistributed net investment income (loss)	$3,984,988	$3,339,086	—

	Small Cap Index	Small Cap Opportunities	Small Company
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^c	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$642,036	$2,160,847	($223,873)
Net realized gain (loss)	3,362,074	6,633,397	(349,401)
Change in net unrealized appreciation (depreciation)	1,215,440	15,182,294	1,321,814
Increase (decrease) in net assets resulting from operations	5,219,550	23,976,538	748,540
Distributions to shareholders
From net investment income
Class 1	—	(48,845)	—
Class NAV	(86,672)	(462,991)	—
From net realized gain
Class 1	—	(3,697)	—
Class NAV	—	(33,252)	—
	(86,672)	(548,785)	—
From Fund share transactions	119,963,560	223,703,772	92,677,026

Net assets

Beginning of period	—	—	—
End of period	$125,096,438	$247,131,525	$93,425,566
Undistributed net investment income (loss)	$536,633	$1,544,403	—

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bClass NAV shares of Real Estate Securities Fund were terminated on 5-1-06.
^cPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 114

John Hancock Funds II

Statements of Changes in Net Assets


	Small Company Growth	Small Company Value	Special Value
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^b	8-31-06 ^b

From operations
Net investment income (loss)	($439,085)	$1,514,278	$410,621
Net realized gain (loss)	1,671,492	2,995,867	910,254
Change in net unrealized appreciation (depreciation)	4,880,900	32,157,056	7,424,159
Increase (decrease) in net assets resulting from operations	6,113,307	36,667,201	8,745,034
Distributions to shareholders
From net investment income
Class 1	—	(272,671)	(1,203)
Class NAV	—	(401,689)	(80,457)
	—	(674,360)	(81,660)
From Fund share transactions	67,787,488	351,922,253	118,998,419

Net assets

Beginning of period	—	—	—
End of period	$73,900,795	$387,915,094	$127,661,793
Undistributed net investment income (loss)	($2)	$846,061	$292,695

	Spectrum Income	Strategic Bond	Strategic Income
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^b	8-31-06 ^c

From operations
Net investment income (loss)	$22,721,733	$17,296,917	$3,848,752
Net realized gain (loss)	637,457	(4,887,393)	909,475
Change in net unrealized appreciation (depreciation)	11,651,117	2,577,393	(1,112,323)
Increase (decrease) in net assets resulting from operations	35,010,307	14,986,917	3,645,904
Distributions to shareholders
From net investment income
Class 1	—	(1,747,753)	—
Class NAV	(18,140,475)	(13,039,773)	(2,008,968)
From net realized gain
Class 1	—	(10,065)	—
Class NAV	—	(114,768)	—
	(18,140,475)	(14,912,359)	(2,008,968)
From Fund share transactions	746,861,140	311,694,682	279,456,497

Net assets

Beginning of period	—	—	—
End of period	$763,730,972	$311,769,240	$281,093,433
Undistributed net investment income (loss)	$6,423,970	$3,116,177	$3,755,040

^aPeriod from 10-29-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^cPeriod from 4-28-06 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 115

John Hancock Funds II

Statements of Changes in Net Assets



	Strategic Value	Total Return	U.S. Global Leaders Growth
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^a

From operations
Net investment income (loss)	$1,248,693	$35,083,437	$1,799,216
Net realized gain (loss)	2,312,021	1,290,748	(5,771,575)
Change in net unrealized appreciation (depreciation)	4,274,310	468,988	(14,622,516)
Increase (decrease) in net assets resulting from operations	7,835,024	36,843,173	(18,594,875)
Distributions to shareholders
From net investment income
Class 1	(18,908)	(2,773,005)	(10,881)
Class NAV	(182,609)	(24,067,715)	(198,525)
	(201,517)	(26,840,720)	(209,406)
From Fund share transactions	144,753,994	1,149,272,239	495,818,107

Net assets

Beginning of period	—	—	—
End of period	$152,387,501	$1,159,274,692	$477,013,826
Undistributed net investment income (loss)	$1,048,812	$10,021,670	$1,593,153

	U.S. Government Securities	U.S. High Yield Bond	U.S. Multi Sector
	Period ended	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^a	8-31-06 ^a	8-31-06 ^b

From operations
Net investment income (loss)	$6,188,465	$12,363,225	$9,102,196
Net realized gain (loss)	(1,000,906)	(96,841)	4,342,196
Change in net unrealized appreciation (depreciation)	629,379	(747,561)	26,125,188
Increase (decrease) in net assets resulting from operations	5,816,938	11,518,823	39,569,580
Distributions to shareholders
From net investment income
Class 1	(1,060,319)	(38,635)	—
Class NAV	(3,604,130)	(9,044,306)	(1,421,127)
From net realized gain
Class 1	(15,290)	—	—
Class NAV	(44,735)	—	—
	(4,724,474)	(9,082,941)	(1,421,127)
From Fund share transactions	202,472,305	287,577,645	1,188,817,440

Net assets

Beginning of period	—	—	—
End of period	$203,564,769	$290,013,527	$1,226,965,893
Undistributed net investment income (loss)	$1,806,481	$3,824,838	$7,664,576

	Value & Restructuring	Vista
	Period ended	Period ended
Increase (decrease) in net assets	8-31-06 ^b	8-31-06 ^b

From operations
Net investment income (loss)	$2,346,697	($135,179)
Net realized gain (loss)	1,120,491	(4,143,358)
Change in net unrealized appreciation (depreciation)	9,209,793	10,751,445
Increase (decrease) in net assets resulting from operations	12,676,981	6,472,908
Distributions to shareholders
From net investment income
Class NAV	(406,118)	—
	(406,118)	—
From Fund share transactions	284,223,844	116,136,795

Net assets

Beginning of period	—	—
End of period	$296,494,707	$122,609,703
Undistributed net investment income (loss)	$1,962,533	($483)

^aPeriod from 10-15-05 (commencement of operations) to 8-31-06.
^bPeriod from 10-29-05 (commencement of operations) to 8-31-06.

The accompanying notes are an integral part of the financial statements. 116

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Absolute Return

	Class A		Class B
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00		$10.00
Net investment income (loss)^h,v		0.10		0.08
Net realized and unrealized gain (loss) on investments		0.32		0.32
Total from investment operations		0.42		0.40
Net asset value, end of period		$10.42		$10.40
Total return^k,l(%)		4.20^m		4.00^m

Ratios and supplemental data

Net assets, end of period (in millions)		$1		$1
Ratio of net expenses to average net assets^q(%)		0.55^r		1.25^r
Ratio of gross expenses to average net assets^p,q(%)		4.04^r		4.73^r
Ratio of net investment income (loss) to
average net assets^v(%)		5.17^r		4.48^r
Portfolio turnover (%)		—^m		—^m


	Class C		Class 1
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00		$10.00
Net investment income (loss)^h,v		0.08		0.10
Net realized and unrealized gain (loss) on investments		0.32		0.32
Total from investment operations		0.40		0.42
Net asset value, end of period		$10.40		$10.42
Total return^k,l(%)		4.00^m		4.20^m

Ratios and supplemental data

Net assets, end of period (in millions)		$1		$1
Ratio of net expenses to average net assets^q(%)		1.25^r		0.30^r
Ratio of gross expenses to average net assets^p,q(%)		4.73^r		3.79^r
Ratio of net investment income (loss) to
average net assets^v(%)		4.48^r		5.42^r
Portfolio turnover (%)		—^m		—^m

a Class A, Class B, Class C and Class 1 shares began operations on 6-26-06.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment and does not reflect the effect of sales charges.
l Total returns would have been lower had certain expenses not been reduced during the period shown.
m Not annualized.
p Does not take into consideration expense reductions during the period shown.
q Does not include expenses of the investment companies in which the Fund invests.
r Annualized.
v Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

The accompanying notes are an integral part of the financial statements. 117

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Active Bond

	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$9.61		$9.58
Net investment income (loss)^h		0.36		0.35
Net realized and unrealized gain (loss) on investments		(0.11)		(0.06)
Total from investment operations		0.25		0.29
Less distributions
From net investment income		(0.26)		(0.27)
		(0.26)		(0.27)
Net asset value, end of period		$9.60		$9.60
Total return^k(%)		2.68^m		3.09^m

Ratios and supplemental data

Net assets, end of period (in millions)		$37		$399
Ratio of net expenses to average net assets (%)		0.79^r		0.70^r
Ratio of net investment income (loss) to
average net assets (%)		4.27^r		4.30^r
Portfolio turnover (%)		406^m		406^m

a Class 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 118

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



All Cap Core

	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.05
Net realized and unrealized gain (loss) on investments		(0.13)
Total from investment operations		(0.08)
Net asset value, end of period		$9.92
Total return (%)		(0.80)^m

Ratios and supplemental data

Net assets, end of period (in millions)		$284
Ratio of net expenses to average net assets (%)		0.84^r
Ratio of net investment income (loss) to
average net assets (%)		1.42^r
Portfolio turnover (%)		86^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 119

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



All Cap Growth
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$15.50		$15.51
Net investment income (loss)^h		0.01		0.02
Net realized and unrealized gain (loss) on investments		0.93		0.93
Total from investment operations		0.94		0.95
Less distributions
From net investment income		(0.01)		(0.01)
		(0.01)		(0.01)
Net asset value, end of period		$16.43		$16.45
Total return^k(%)		6.05^m		6.11^m
Ratios and supplemental data

Net assets, end of period (in millions)		$32		$123
Ratio of net expenses to average net assets (%)		1.00^r		0.95^r
Ratio of net investment income (loss) to
average net assets (%)		0.08^r		0.14^r
Portfolio turnover (%)		106^m		106^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 120

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



All Cap Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.84		$13.80
Net investment income (loss)^h		0.11		0.12
Net realized and unrealized gain (loss) on investments		1.91		1.91
Total from investment operations		2.02		2.03
Less distributions
From net investment income		(0.02)		(0.03)
		(0.02)		(0.03)
Net asset value, end of period		$15.84		$15.80
Total return^k,l(%)		14.64^m		14.69^m
Ratios and supplemental data

Net assets, end of period (in millions)		$21		$195
Ratio of net expenses to average net assets (%)		0.94^r		0.89^r
Ratio of net investment income (loss) to
average net assets (%)		0.80^r		0.88^r
Portfolio turnover (%)		48^m		48^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
l The Adviser/Subadviser voluntarily paid Class 1 and Class NAV $46,991 and $410,290, respectively, for a potential lost investment opportunity. Excluding these payments, the total return would
have been 14.38% for Class 1 and 14.45% for Class NAV.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 121

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Blue Chip Growth
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$16.53		$16.51
Net investment income (loss)^h		0.08		0.09
Net realized and unrealized gain (loss) on investments		1.22		1.22
Total from investment operations		1.30		1.31
Less distributions
From net investment income		(0.01)		(0.02)
		(0.01)		(0.02)
Net asset value, end of period		$17.82		$17.80
Total return^k,l(%)		7.88^m		7.90^m
Ratios and supplemental data

Net assets, end of period (in millions)		$185		$1,088
Ratio of net expenses to average net assets (%)		0.88^r		0.83^r
Ratio of gross expenses to average net assets^p(%)		0.90^r		0.85^r
Ratio of net investment income (loss) to
average net assets (%)		0.51^r		0.58^r
Portfolio turnover (%)		28^m		28^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
l Total returns would have been lower had certain expenses not been reduced during the period shown.
m Not annualized.
p Does not take into consideration expense reductions during the period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements. 122

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Capital Appreciation
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$9.20		$9.20
Net investment income (loss)^h		0.01		0.01
Net realized and unrealized gain (loss) on investments		0.23		0.24
Total from investment operations		0.24		0.25
Net asset value, end of period		$9.44		$9.45
Total return (%)		2.61^m		2.72^m
Ratios and supplemental data

Net assets, end of period (in millions)		$68		$393
Ratio of net expenses to average net assets (%)		0.88^r		0.83^r
Ratio of net investment income (loss) to
average net assets (%)		0.10^r		0.15^r
Portfolio turnover (%)		57^m		57^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 123

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Core Bond
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$12.51		$12.50
Net investment income (loss)^h		0.47		0.46
Net realized and unrealized gain (loss) on investments		(0.12)		(0.11)
Total from investment operations		0.35		0.35
Less distributions
From net investment income		(0.34)		(0.34)
		(0.34)		(0.34)
Net asset value, end of period		$12.52		$12.51
Total return^k(%)		2.86^m		2.90^m
Ratios and supplemental data

Net assets, end of period (in millions)		$1		$197
Ratio of net expenses to average net assets (%)		0.88^r		0.83^r
Ratio of net investment income (loss) to
average net assets (%)		4.39^r		4.24^r
Portfolio turnover (%)		436^m		436^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 124

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Core Equity
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.76		$13.77
Net investment income (loss)^h		(0.01)		—^j
Net realized and unrealized gain (loss) on investments		0.50		0.50
Total from investment operations		0.49		0.50
Net asset value, end of period		$14.25		$14.27
Total return (%)		3.56^m		3.63^m
Ratios and supplemental data

Net assets, end of period (in millions)		$12		$584
Ratio of net expenses to average net assets (%)		0.88^r		0.83^r
Ratio of net investment income (loss) to
average net assets (%)		(0.04)^r		(0.01)^r
Portfolio turnover (%)		13^m		13^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
j Less than $0.01 per share.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 125

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Emerging Growth
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$16.35		$16.35
Net investment income (loss)^h		(0.04)		(0.03)
Net realized and unrealized gain (loss) on investments		2.03		2.02
Total from investment operations		1.99		1.99
Net asset value, end of period		$18.34		$18.34
Total return (%)		12.17^m		12.17^m
Ratios and supplemental data

Net assets, end of period (in millions)		$120		$51
Ratio of net expenses to average net assets (%)		0.98^r		0.93^r
Ratio of net investment income (loss) to
average net assets (%)		(0.26)^r		(0.20)^r
Portfolio turnover (%)		206^m		206^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 126

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Emerging Small Company
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$28.17		$29.40
Net investment income (loss)^h		(0.16)		(0.04)
Net realized and unrealized gain (loss) on investments		0.96		(0.39)
Total from investment operations		0.80		(0.43)
Net asset value, end of period		$28.97		$28.97
Total return^l(%)		2.84^m		(1.46)^m
Ratios and supplemental data

Net assets, end of period (in millions)		$52		—ⁿ
Ratio of net expenses to average net assets (%)		1.13^r		1.08^r
Ratio of gross expenses to average net assets^p(%)		1.30^r		1.76^r
Ratio of net investment income (loss) to
average net assets (%)		(0.57)^r		(0.71)^r
Portfolio turnover (%)		207^m		207^m

a Class 1 and Class NAV shares began operations on 10-15-05 and 6-26-06, respectively.
h Based on the average of the shares outstanding.
l Total returns would have been lower had certain expenses not been reduced during the period shown.
m Not annualized.
n Less than $500,000.
p Does not take into consideration expense reductions during the period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements. 127

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Equity-Income
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$16.03		$16.01
Net investment income (loss)^h		0.26		0.27
Net realized and unrealized gain (loss) on investments		1.90		1.89
Total from investment operations		2.16		2.16
Less distributions
From net investment income		(0.06)		(0.06)
		(0.06)		(0.06)
Net asset value, end of period		$18.13		$18.11
Total return^k,l(%)		13.52^m		13.54^m
Ratios and supplemental data

Net assets, end of period (in millions)		$183		$535
Ratio of net expenses to average net assets (%)		0.89^r		0.84^r
Ratio of gross expenses to average net assets^p(%)		0.90^r		0.85^r
Ratio of net investment income (loss) to
average net assets (%)		1.68^r		1.75^r
Portfolio turnover (%)		39^m		39^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
l Total returns would have been lowered had certain expenses not been reduced during the period shown.
m Not annualized.
p Does not take into consideration expense reductions during the period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements.

128

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Fundamental Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$14.34		$14.31
Net investment income (loss)^h		0.13		0.13
Net realized and unrealized gain (loss) on investments		1.42		1.42
Total from investment operations		1.55		1.55
Less distributions
From net investment income		(0.03)		(0.03)
		(0.03)		(0.03)
Net asset value, end of period		$15.86		$15.83
Total return^k(%)		10.83^m		10.87^m
Ratios and supplemental data

Net assets, end of period (in millions)		$67		$695
Ratio of net expenses to average net assets (%)		0.86^r		0.81^r
Ratio of net investment income (loss) to
average net assets (%)		0.93^r		1.00^r
Portfolio turnover (%)		8^m		8^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 129

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Global Bond
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$14.56		$14.52
Net investment income (loss)^h		0.44		0.45
Net realized and unrealized gain (loss) on investments		(0.08)		(0.09)
Total from investment operations		0.36		0.36
Less distributions
From net investment income		(0.09)		(0.09)
		(0.09)		(0.09)
Net asset value, end of period		$14.83		$14.79
Total return^k(%)		2.46^m		2.48^m
Ratios and supplemental data

Net assets, end of period (in millions)		$41		$554
Ratio of net expenses to average net assets (%)		0.84^r		0.79^r
Ratio of net investment income (loss) to
average net assets (%)		3.42^r		3.56^r
Portfolio turnover (%)		248^m		248^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 130

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Global Real Estate
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.06
Net realized and unrealized gain (loss) on investments		0.24
Total from investment operations		0.30
Net asset value, end of period		$10.30
Total return (%)		3.00^m
Ratios and supplemental data

Net assets, end of period (in millions)		$355
Ratio of net expenses to average net assets (%)		1.09^r
Ratio of net investment income (loss) to
average net assets (%)		1.65^r
Portfolio turnover (%)		87^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 131

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



High Income
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.23
Net realized and unrealized gain (loss) on investments		(0.25)
Total from investment operations		(0.02)
Less distributions
From net investment income		(0.11)
		(0.11)
Net asset value, end of period		$9.87
Total return^k(%)		(0.14)^m
Ratios and supplemental data

Net assets, end of period (in millions)		$289
Ratio of net expenses to average net assets (%)		0.77^r
Ratio of net investment income (loss) to
average net assets (%)		6.73^r
Portfolio turnover (%)		76^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 132

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



High Yield
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.10		$10.06
Net investment income (loss)^h		0.65		0.66
Net realized and unrealized gain (loss) on investments		(0.03)		(0.03)
Total from investment operations		0.62		0.63
Less distributions
From net investment income		(0.60)		(0.61)
		(0.60)		(0.61)
Net asset value, end of period		$10.12		$10.08
Total return^k(%)		6.41^m		6.49^m
Ratios and supplemental data

Net assets, end of period (in millions)		$44		$1,144
Ratio of net expenses to average net assets (%)		0.76^r		0.71^r
Ratio of net investment income (loss) to
average net assets (%)		7.22^r		7.36^r
Portfolio turnover (%)		83^m		83^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 133

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



International Equity Index
	Class NAV
Period ended		8-31-06^b

Per share operating performance

Net asset value, beginning of period		$15.59
Net investment income (loss)^h		0.41
Net realized and unrealized gain (loss) on investments		3.17
Total from investment operations		3.58
Less distributions
From net investment income		(0.20)
		(0.20)
Net asset value, end of period		$18.97
Total return^k(%)		23.16^m
Ratios and supplemental data

Net assets, end of period (in millions)		$308
Ratio of net expenses to average net assets (%)		0.58^r
Ratio of net investment income (loss) to
average net assets (%)		2.78^r
Portfolio turnover (%)		11^m

b Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 134

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



International Opportunities
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.71		$13.72
Net investment income (loss)^h		0.11		0.10
Net realized and unrealized gain (loss) on investments		3.01		3.04
Total from investment operations		3.12		3.14
Less distributions
From net investment income		(0.70)		(0.70)
		(0.70)		(0.70)
Net asset value, end of period		$16.13		$16.16
Total return^k,l(%)		23.36^m		23.51^m
Ratios and supplemental data

Net assets, end of period (in millions)		$9		$552
Ratio of net expenses to average net assets (%)		1.07^r		1.02^r
Ratio of net investment income (loss) to
average net assets (%)		0.78^r		0.73^r
Portfolio turnover (%)		99^m		99^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
l The Adviser/Subadviser voluntarily reimbursed Class 1 and Class NAV $11,316 and $3,937,220, respectively, for a potential lost investment opportunity. Excluding these reimbursements, the total
return would have been 23.19% for Class 1 and 22.62% for Class NAV.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 135

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



International Small Cap
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$18.48		$18.45
Net investment income (loss)^h		0.27		0.25
Net realized and unrealized gain (loss) on investments		2.24		2.29
Total from investment operations		2.51		2.54
Less distributions
From net investment income		(0.04)		(0.04)
		(0.04)		(0.04)
Net asset value, end of period		$20.95		$20.95
Total return^k(%)		13.58^m		13.80^m
Ratios and supplemental data

Net assets, end of period (in millions)		$37		$359
Ratio of net expenses to average net assets (%)		1.18^r		1.13^r
Ratio of net investment income (loss) to
average net assets (%)		1.55^r		1.43^r
Portfolio turnover (%)		89^m		89^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 136

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



International Small Company
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.04
Net realized and unrealized gain (loss) on investments		(0.71)
Total from investment operations		(0.67)
Net asset value, end of period		$9.33
Total return (%)		(6.70)^m
Ratios and supplemental data

Net assets, end of period (in millions)		$221
Ratio of net expenses to average net assets (%)		1.14^r
Ratio of net investment income (loss) to
average net assets (%)		1.37^r
Portfolio turnover (%)		57^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 137

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



International Stock
	Class 1
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$11.95
Net investment income (loss)^h		0.28
Net realized and unrealized gain (loss) on investments		2.32
Total from investment operations		2.60
Less distributions
From net investment income		(0.28)
From net realized gain		(0.45)
		(0.73)
Net asset value, end of period		$13.82
Total return^k(%)		22.19^m
Ratios and supplemental data

Net assets, end of period (in millions)		$79
Ratio of net expenses to average net assets (%)		1.12^r
Ratio of net investment income (loss) to
average net assets (%)		2.44^r
Portfolio turnover (%)		196^m,x

a Class 1 shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.
x Includes redemption-in-kind activity. Refer to Merger of International Stock footnote 1.

The accompanying notes are an integral part of the financial statements. 138

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



International Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$15.20		$15.16
Net investment income (loss)^h		0.46		0.47
Net realized and unrealized gain (loss) on investments		2.30		2.30
Total from investment operations		2.76		2.77
Less distributions
From net investment income		(0.05)		(0.05)
		(0.05)		(0.05)
Net asset value, end of period		$17.91		$17.88
Total return^k,l(%)		18.22^m		18.35^m
Ratios and supplemental data

Net assets, end of period (in millions)		$134		$836
Ratio of net expenses to average net assets (%)		0.99^r		0.94^r
Ratio of gross expenses to average net assets^p(%)		1.01^r		0.96^r
Ratio of net investment income (loss) to
average net assets (%)		3.17^r		3.21^r
Portfolio turnover (%)		59^m		59^m

The accompanying notes are an integral part of the financial statements. 139

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Investment Quality Bond
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$11.84		$11.83
Net investment income (loss)^h		0.46		0.46
Net realized and unrealized gain (loss) on investments		(0.16)		(0.16)
Total from investment operations		0.30		0.30
Less distributions
From net investment income		(0.38)		(0.38)
		(0.38)		(0.38)
Net asset value, end of period		$11.76		$11.75
Total return^k(%)		2.64^m		2.68^m
Ratios and supplemental data

Net assets, end of period (in millions)		$35		$93
Ratio of net expenses to average net assets (%)		0.84^r		0.79^r
Ratio of net investment income (loss) to
average net assets (%)		4.42^r		4.51^r
Portfolio turnover (%)		35^m		35^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 140

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Large Cap
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.26		$13.26
Net investment income (loss)^h		0.11		0.12
Net realized and unrealized gain (loss) on investments		1.31		1.31
Total from investment operations		1.42		1.43
Less distributions
From net investment income		(0.01)		(0.02)
		(0.01)		(0.02)
Net asset value, end of period		$14.67		$14.67
Total return^k(%)		10.73^m		10.79^m
Ratios and supplemental data

Net assets, end of period (in millions)		$2		$192
Ratio of net expenses to average net assets (%)		0.93^r		0.88^r
Ratio of net investment income (loss) to
average net assets (%)		0.86^r		0.95^r
Portfolio turnover (%)		24^m		24^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 141

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Large Cap Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$20.31		$20.33
Net investment income (loss)^h		0.23		0.17
Net realized and unrealized gain (loss) on investments		2.48		2.56
Total from investment operations		2.71		2.73
Less distributions
From net investment income		(0.05)		(0.05)
		(0.05)		(0.05)
Net asset value, end of period		$22.97		$23.01
Total return^k(%)		13.33^m		13.43^m
Ratios and supplemental data

Net assets, end of period (in millions)		$105		$234
Ratio of net expenses to average net assets (%)		0.98^r		0.89^r
Ratio of net investment income (loss) to
average net assets (%)		1.24^r		0.89^r
Portfolio turnover (%)		54^m		54^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 142

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Mid Cap Core
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$15.90		$15.90
Net investment income (loss)^h		0.13		0.14
Net realized and unrealized gain (loss) on investments		1.25		1.24
Total from investment operations		1.38		1.38
Less distributions
From net investment income		(0.02)		(0.02)
		(0.02)		(0.02)
Net asset value, end of period		$17.26		$17.26
Total return^k(%)		8.67^m		8.68^m
Ratios and supplemental data

Net assets, end of period (in millions)		$11		$294
Ratio of net expenses to average net assets (%)		0.98^r		0.93^r
Ratio of net investment income (loss) to
average net assets (%)		0.88^r		0.95^r
Portfolio turnover (%)		115^m		115^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 143

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Mid Cap Index
	Class NAV
Period ended		8-31-06^b

Per share operating performance

Net asset value, beginning of period		$16.85
Net investment income (loss)^h		0.17
Net realized and unrealized gain (loss) on investments		1.38
Total from investment operations		1.55
Less distributions
From net investment income		(0.03)
		(0.03)
Net asset value, end of period		$18.37
Total return^k,l(%)		9.20^m
Ratios and supplemental data

Net assets, end of period (in millions)		$172
Ratio of net expenses to average net assets (%)		0.56^r
Ratio of gross expenses to average net assets^p(%)		0.56^r
Ratio of net investment income (loss) to
average net assets (%)		1.14^r
Portfolio turnover (%)		10^m

b Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
l Total returns would have been lower had certain expenses not been reduced during the period shown.
m Not annualized.
p Does not take into consideration expense reductions during the period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements. 144

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Mid Cap Stock
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.86		$13.87
Net investment income (loss)^h		(0.04)		(0.04)
Net realized and unrealized gain (loss) on investments		2.01		2.02
Total from investment operations		1.97		1.98
Less distributions
From net investment income		—		—^j
From net realized gain		(0.02)		(0.02)
		(0.02)		(0.02)
Net asset value, end of period		$15.81		$15.83
Total return^k,l(%)		14.20^m		14.27^m
Ratios and supplemental data

Net assets, end of period (in millions)		$107		$194
Ratio of net expenses to average net assets (%)		0.96^r		0.91^r
Ratio of net investment income (loss) to
average net assets (%)		(0.30)^r		(0.26)^r
Portfolio turnover (%)		104^m		104^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
j Less than $0.01 per share.
k Assumes dividend reinvestment.
l The Adviser/Subadviser voluntarily paid Class 1 and Class NAV $510,149 and $847,342, respectively, for a potential lost investment opportunity. Excluding these payments, the total return would
have been 13.67% for Class 1 and 13.77% for Class NAV.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 145

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Mid Cap Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$17.65		$17.63
Net investment income (loss)^h		0.11		0.12
Net realized and unrealized gain (loss) on investments		1.15		1.15
Total from investment operations		1.26		1.27
Less distributions
From net investment income		(0.03)		(0.03)
From net realized gain		(0.01)		(0.01)
		(0.04)		(0.04)
Net asset value, end of period		$18.87		$18.86
Total return^k(%)		7.11^m		7.18^m
Ratios and supplemental data

Net assets, end of period (in millions)		$93		$50
Ratio of net expenses to average net assets (%)		0.97^r		0.92^r
Ratio of net investment income (loss) to
average net assets (%)		0.63^r		0.70^r
Portfolio turnover (%)		74^m		74^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 146

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Mid Cap Value Equity
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.03
Net realized and unrealized gain (loss) on investments		(0.38)
Total from investment operations		(0.35)
Net asset value, end of period		$9.65
Total return (%)		(3.50)^m
Ratios and supplemental data

Net assets, end of period (in millions)		$98
Ratio of net expenses to average net assets (%)		1.02^r
Ratio of net investment income (loss) to
average net assets (%)		0.79^r
Portfolio turnover (%)		24^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 147

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Natural Resources
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$28.70		$28.60
Net investment income (loss)^h		0.34		0.33
Net realized and unrealized gain (loss) on investments		6.70		6.71
Total from investment operations		7.04		7.04
Less distributions
From net investment income		(0.03)		(0.04)
		(0.03)		(0.04)
Net asset value, end of period		$35.71		$35.60
Total return^k(%)		24.55^m		24.62^m
Ratios and supplemental data

Net assets, end of period (in millions)		$81		$692
Ratio of net expenses to average net assets (%)		1.12^r		1.07^r
Ratio of net investment income (loss) to
average net assets (%)		1.13^r		1.11^r
Portfolio turnover (%)		71^m		71^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 148

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Quantitative All Cap
	Class A		Class B
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00		$10.00
Net investment income (loss)^h		0.02		0.01
Net realized and unrealized gain (loss) on investments		0.09		0.10
Total from investment operations		0.11		0.11
Net asset value, end of period		$10.11		$10.11
Total return^k(%)		1.10^l,m		1.10^l,m
Ratios and supplemental data

Net assets, end of period (in millions)		$1		$1
Ratio of net expenses to average net assets (%)		1.07^r		1.75^r
Ratio of gross expenses to average net assets^p(%)		5.94^r		6.63^r
Ratio of net investment income (loss) to
average net assets (%)		1.70^r		1.02^r
Portfolio turnover (%)		21^m		21^m


	Class C		Class I
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00		$10.00
Net investment income (loss)^h		0.01		0.02
Net realized and unrealized gain (loss) on investments		0.10		0.10
Total from investment operations		0.11		0.12
Net asset value, end of period		$10.11		$10.12
Total return^k(%)		1.10^l,m		1.20^l,m
Ratios and supplemental data

Net assets, end of period (in millions)		$1		$1
Ratio of net expenses to average net assets (%)		1.75^r		0.78^r
Ratio of gross expenses to average net assets^p(%)		6.63^r		5.66^r
Ratio of net investment income (loss) to
average net assets (%)		1.02^r		1.99^r
Portfolio turnover (%)		21^m		21^m

a Class A, Class B, Class C, and Class I shares began operations on 7-28-06.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment and does not reflect the effect of sales charges.
l Total returns would have been lower had certain expenses not been reduced during the period shown.
m Not annualized.
p Does not take into consideration expense reductions during the period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements. 149

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Quantitative Mid Cap
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.55		$13.71
Net investment income (loss)^h		0.02		0.03
Net realized and unrealized gain (loss) on investments		0.76		0.59
Total from investment operations		0.78		0.62
Less distributions
From net investment income		—^j		—^j
From net realized gain		(0.01)		(0.01)
		(0.01)		(0.01)
Net asset value, end of period		$14.32		$14.32
Total return^k(%)		5.74^m		4.51^m
Ratios and supplemental data

Net assets, end of period (in millions)		$133		$50
Ratio of net expenses to average net assets (%)		0.85^r		0.80^r
Ratio of net investment income (loss) to
average net assets (%)		0.12^r		0.20^r
Portfolio turnover (%)		119^m		119^m

a Class 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.
h Based on the average of the shares outstanding.
j Less than $0.01 per share.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 150

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Quantitative Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$14.09		$14.09
Net investment income (loss)^h		0.22		0.24
Net realized and unrealized gain (loss) on investments		2.31		2.29
Total from investment operations		2.53		2.53
Less distributions
From net investment income		(0.06)		(0.06)
From net realized gain		—^j		—^j
		(0.06)		(0.06)
Net asset value, end of period		$16.56		$16.56
Total return^k(%)		17.98^m		17.98^m
Ratios and supplemental data

Net assets, end of period (in millions)		$96		$362
Ratio of net expenses to average net assets (%)		0.79^r		0.74^r
Ratio of net investment income (loss) to
average net assets (%)		1.62^r		1.73^r
Portfolio turnover (%)		127^m		127^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
j Less than $0.01 per share.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 151

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Real Estate Equity
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.08
Net realized and unrealized gain (loss) on investments		0.91
Total from investment operations		0.99
Net asset value, end of period		$10.99
Total return (%)^l		9.90^m
Ratios and supplemental data

Net assets, end of period (in millions)		$275
Ratio of net expenses to average net assets (%)		0.90^r
Ratio of gross expenses to average net assets^p(%)		0.92^r
Ratio of net investment income (loss) to
average net assets (%)		2.29^r
Portfolio turnover (%)		50^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
l Total returns would have been lower had certain expenses not been reduced during period shown.
m Not annualized.
p Does not take into consideration expense reductions during period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements. 152

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Real Estate Securities
	Class 1
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$23.03
Net investment income (loss)^h		0.64
Net realized and unrealized gain (loss) on investments		6.46
Total from investment operations		7.10
Less distributions
From net investment income		(0.16)
From net realized gain		(0.03)
		(0.19)
Net asset value, end of period		$29.94
Total return^k(%)		30.96^m
Ratios and supplemental data

Net assets, end of period (in millions)		$171
Ratio of net expenses to average net assets (%)		0.82^r
Ratio of net investment income (loss) to
average net assets (%)		2.76^r
Portfolio turnover (%)		199^m

a Class 1 shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 153

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Real Return Bond
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.52		$13.43
Net investment income (loss)^h		0.53		0.55
Net realized and unrealized gain (loss) on investments		(0.24)		(0.26)
Total from investment operations		0.29		0.29
Less distributions
From net investment income		(0.40)		(0.40)
From net realized gain		—^j		—^j
		(0.40)		(0.40)
Net asset value, end of period		$13.41		$13.32
Total return^k(%)		2.27^m		2.32^m
Ratios and supplemental data

Net assets, end of period (in millions)		$17		$684
Ratio of net expenses to average net assets (%)		0.80^r		0.75^r
Ratio of net investment income (loss) to
average net assets (%)		4.52^r		4.75^r
Portfolio turnover (%)		216^m		216^m

The accompanying notes are an integral part of the financial statements. 154

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Small Cap
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.60		$13.61
Net investment income (loss)^h		(0.03)		(0.03)
Net realized and unrealized gain (loss) on investments		0.45		0.46
Total from investment operations		0.42		0.43
Net asset value, end of period		$14.02		$14.04
Total return (%)		3.09^m		3.16^m
Ratios and supplemental data

Net assets, end of period (in millions)		$1		$240
Ratio of net expenses to average net assets (%)		0.96^r		0.91^r
Ratio of net investment income (loss) to
average net assets (%)		(0.27)^r		(0.27)^r
Portfolio turnover (%)		53^m		53^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 155

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Small Cap Index
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$14.05
Net investment income (loss)^h		0.12
Net realized and unrealized gain (loss) on investments		1.80
Total from investment operations		1.92
Less distributions
From net investment income		(0.02)
		(0.02)
Net asset value, end of period		$15.95
Total return^k,l(%)		13.69^m
Ratios and supplemental data

Net assets, end of period (in millions)		$125
Ratio of net expenses to average net assets (%)		0.56^r
Ratio of gross expenses to average net assets^p(%)		0.58^r
Ratio of net investment income (loss) to
average net assets (%)		0.92^r
Portfolio turnover (%)		40^m

a Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
l Total returns would have been lower had certain expenses not been reduced during the periods shown.
m Not annualized.
p Does not take into consideration expense reductions during the period shown.
r Annualized.

The accompanying notes are an integral part of the financial statements. 156

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Small Cap Opportunities
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$21.36		$21.26
Net investment income (loss)^h		0.21		0.22
Net realized and unrealized gain (loss) on investments		1.72		1.71
Total from investment operations		1.93		1.93
Less distributions
From net investment income		(0.05)		(0.05)
From net realized gain		—^j		—^j
		(0.05)		(0.05)
Net asset value, end of period		$23.24		$23.14
Total return^k(%)		9.04^m		9.09^m
Ratios and supplemental data

Net assets, end of period (in millions)		$30		$217
Ratio of net expenses to average net assets (%)		1.10^r		1.05^r
Ratio of net investment income (loss) to
average net assets (%)		1.01^r		1.05^r
Portfolio turnover (%)		59^m		59^m

The accompanying notes are an integral part of the financial statements. 157

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Small Company
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$15.15		$15.16
Net investment income (loss)^h		(0.06)		(0.04)
Net realized and unrealized gain (loss) on investments		0.33		0.32
Total from investment operations		0.27		0.28
Net asset value, end of period		$15.42		$15.44
Total return (%)		1.78^m		1.85^m
Ratios and supplemental data

Net assets, end of period (in millions)		$6		$87
Ratio of net expenses to average net assets (%)		1.34^r		1.29^r
Ratio of net investment income (loss) to
average net assets (%)		(0.40)^r		(0.31)^r
Portfolio turnover (%)		110^m		110^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 158

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Small Company Growth
	Class NAV		Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		(0.08)
Net realized and unrealized gain (loss) on investments		1.17
Total from investment operations		1.09
Net asset value, end of period		$11.09
Total return (%)		10.90^m
Ratios and supplemental data

Net assets, end of period (in millions)		$74
Ratio net of expenses to average net assets (%)		1.16^r
Ratio of net investment income (loss) to
average net assets (%)		(0.83)^r
Portfolio turnover (%)		49^m

a Class 1 and Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 159

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Small Company Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$21.09		$21.06
Net investment income (loss)^h		0.10		0.11
Net realized and unrealized gain (loss) on investments		2.52		2.51
Total from investment operations		2.62		2.62
Less distributions
From net investment income		(0.05)		(0.05)
		(0.05)		(0.05)
Net asset value, end of period		$23.66		$23.63
Total return^k,l(%)		12.41^m		12.44^m
Ratios and supplemental data

Net assets, end of period (in millions)		$149		$239
Ratio of net expenses to average net assets (%)		1.10^r		1.05^r
Ratio of gross expenses to average net assets^p(%)		1.12^r		1.07^r
Ratio of net investment income (loss) to
average net assets (%)		0.46^r		0.53^r
Portfolio turnover (%)		12^m		12^m

The accompanying notes are an integral part of the financial statements. 160

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Special Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$18.66		$18.66
Net investment income (loss)^h		0.06		0.08
Net realized and unrealized gain (loss) on investments		1.79		1.80
Total from investment operations		1.85		1.88
Less distributions
From net investment income		(0.01)		(0.02)
		(0.01)		(0.02)
Net asset value, end of period		$20.50		$20.52
Total return (%)^k		9.91^m		10.06^m
Ratios and supplemental data

Net assets, end of period (in millions)		$4		$124
Ratio of net expenses to average net assets (%)		1.12^r		1.07^r
Ratio of net investment income (loss) to
average net assets (%)		0.35^r		0.44^r
Portfolio turnover (%)		26^m		26^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 161

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Spectrum Income
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.35
Net realized and unrealized gain (loss) on investments		0.19
Total from investment operations		0.54
Less distributions
From net investment income		(0.27)
		(0.27)
Net asset value, end of period		$10.27
Total return^k,l(%)		5.47^m
Ratios and supplemental data

Net assets, end of period (in millions)		$764
Ratio of net expenses to average net assets (%)		0.93^r
Ratio of gross expenses to average net assets^p(%)		0.94^r
Ratio of net investment income (loss) to
average net assets (%)		4.15^r
Portfolio turnover (%)		123^m

The accompanying notes are an integral part of the financial statements. 162

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Strategic Bond
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$11.85		$11.83
Net investment income (loss)^h		0.51		0.51
Net realized and unrealized gain (loss) on investments		(0.04)		(0.04)
Total from investment operations		0.47		0.47
Less distributions
From net investment income		(0.53)		(0.53)
From net realized gain		—^j		—^j
		(0.53)		(0.53)
Net asset value, end of period		$11.79		$11.77
Total return^k(%)		4.18^m		4.22^m
Ratios and supplemental data

Net assets, end of period (in millions)		$42		$270
Ratio of net expenses to average net assets (%)		0.82^r		0.77^r
Ratio of net investment income (loss) to
average net assets (%)		4.88^r		4.88^r
Portfolio turnover (%)		192^m		192^m

The accompanying notes are an integral part of the financial statements. 163

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Strategic Income
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.14
Net realized and unrealized gain (loss) on investments		(0.01)
Total from investment operations		0.13
Less distributions
From net investment income		(0.07)
		(0.07)
Net asset value, end of period		$10.06
Total return^k(%)		1.37^m
Ratios and supplemental data

Net assets, end of period (in millions)		$281
Ratio of net expenses to average net assets (%)		0.86^r
Ratio of net investment income (loss) to
average net assets (%)		4.18^r
Portfolio turnover (%)		65^m

a Class NAV shares began operations on 4-28-06.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 164

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Strategic Value
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.29		$10.25
Net investment income (loss)^h		0.09		0.10
Net realized and unrealized gain (loss) on investments		0.58		0.57
Total from investment operations		0.67		0.67
Less distributions
From net investment income		(0.02)		(0.02)
		(0.02)		(0.02)
Net asset value, end of period		$10.94		$10.90
Total return^k(%)		6.47^m		6.52^m
Ratios and supplemental data

Net assets, end of period (in millions)		$14		$139
Ratio of net expenses to average net assets (%)		0.97^r		0.92^r
Ratio of net investment income (loss) to average net assets (%)		0.98^r		1.10^r
Portfolio turnover (%)		42^m		42^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 165

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Total Return
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.70		$13.67
Net investment income (loss)^h		0.46		0.47
Net realized and unrealized gain (loss) on investments		(0.04)		(0.05)
Total from investment operations		0.42		0.42
Less distributions
From net investment income		(0.34)		(0.34)
		(0.34)		(0.34)
Net asset value, end of period		$13.78		$13.75
Total return^k(%)		3.14^m		3.18^m
Ratios and supplemental data

Net assets, end of period (in millions)		$118		$1,041
Ratio of net expenses to average net assets (%)		0.82^r		0.77^r
Ratio of net investment income (loss) to
average net assets (%)		3.85^r		3.95^r
Portfolio turnover (%)		398^m		398^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 166

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



U.S. Global Leaders Growth
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$12.79		$12.80
Net investment income (loss)^h		0.05		0.06
Net realized and unrealized gain (loss) on investments		(0.17)		(0.17)
Total from investment operations		(0.12)		(0.11)
Less distributions
From net investment income		(0.01)		(0.01)
		(0.01)		(0.01)
Net asset value, end of period		$12.66		$12.68
Total return^k(%)		(0.97)^m		(0.88)^m
Ratios and supplemental data

Net assets, end of period (in millions)		$25		$452
Ratio of net expenses to average net assets (%)		0.79^r		0.74^r
Ratio of net investment income (loss) to
average net assets (%)		0.44^r		0.52^r
Portfolio turnover (%)		17^m		17^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 167

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



U.S. Government Securities
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$13.54		$13.51
Net investment income (loss)^h		0.44		0.44
Net realized and unrealized gain (loss) on investments		(0.07)		(0.06)
Total from investment operations		0.37		0.38
Less distributions
From net investment income		(0.32)		(0.33)
From net realized gain		—^j		—^j
		(0.32)		(0.33)
Net asset value, end of period		$13.59		$13.56
Total return (%)^k		2.87^m		2.91^m
Ratios and supplemental data

Net assets, end of period (in millions)		$43		$161
Ratio of net expenses to average net assets (%)		0.78^r		0.73^r
Ratio of net investment income (loss) to
average net assets (%)		3.67^r		3.75^r
Portfolio turnover (%)		100^m		100^m

The accompanying notes are an integral part of the financial statements. 168

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



U.S. High Yield Bond
	Class 1		Class NAV
Period ended		8-31-06^a		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$12.74		$12.74
Net investment income (loss)^h		0.80		0.80
Net realized and unrealized gain (loss) on investments		0.02		0.02
Total from investment operations		0.82		0.82
Less distributions
From net investment income		(0.51)		(0.51)
		(0.51)		(0.51)
Net asset value, end of period		$13.05		$13.05
Total return^k(%)		6.55^m		6.58^m
Ratios and supplemental data

Net assets, end of period (in millions)		$2		$288
Ratio of net expenses to average net assets (%)		0.87^r		0.82^r
Ratio of net investment income (loss) to
average net assets (%)		7.12^r		7.06^r
Portfolio turnover (%)		108^m		108^m

a Class 1 and Class NAV shares began operations on 10-15-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 169

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



U.S. Multi Sector
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.09
Net realized and unrealized gain (loss) on investments		0.33
Total from investment operations		0.42
Less distributions
From net investment income		(0.01)
		(0.01)
Net asset value, end of period		$10.41
Total return^k(%)		4.25^m
Ratios and supplemental data

Net assets, end of period (in millions)		$1,227
Ratio of net expenses to average net assets (%)		0.82^r
Ratio of net investment income (loss) to
average net assets (%)		1.01^r
Portfolio turnover (%)		116^m

a Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 170

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Value & Restructuring
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		0.12
Net realized and unrealized gain (loss) on investments		0.99
Total from investment operations		1.11
Less distributions
From net investment income		(0.03)
		(0.03)
Net asset value, end of period		$11.08
Total return^k(%)		11.07^m
Ratios and supplemental data

Net assets, end of period (in millions)		$296
Ratio of net expenses to average net assets (%)		0.92^r
Ratio of net investment income (loss) to
average net assets (%)		1.33^r
Portfolio turnover (%)		17^m

a Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
k Assumes dividend reinvestment.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 171

John Hancock Funds II

Financial Highlights (For a share outstanding throughout the period)



Vista
	Class NAV
Period ended		8-31-06^a

Per share operating performance

Net asset value, beginning of period		$10.00
Net investment income (loss)^h		(0.01)
Net realized and unrealized gain (loss) on investments		0.71
Total from investment operations		0.70
Net asset value, end of period		$10.70
Total return (%)		7.00^m
Ratios and supplemental data

Net assets, end of period (in millions)		$123
Ratio of net expenses to average net assets (%)		1.04^r
Ratio of net investment income (loss) to
average net assets (%)		(0.15)^r
Portfolio turnover (%)		205^m

a Class NAV shares began operations on 10-29-05.
h Based on the average of the shares outstanding.
m Not annualized.
r Annualized.

The accompanying notes are an integral part of the financial statements. 172

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Absolute Return Fund
		Shares or
		Principal
		Amount		Value


INVESTMENT COMPANIES - 92.37%
Mutual Funds - 92.37%
Capital Appreciation Fund Class NAV		21,668	$	204,767
Core Bond Fund Class NAV		12,400		155,123
Emerging Small Company Fund Class NAV		3,401		98,537
Equity-Income Fund Class NAV		5,807		105,168
Fundamental Value Fund Class NAV		6,588		104,282
Global Bond Fund Class NAV		6,974		103,138
High Income Fund Class NAV		41,253		407,164
High Yield Fund Class NAV		10,288		103,699
International Opportunities Fund Class NAV		6,689		108,094
International Small Company Fund Class NAV		16,873		157,424
International Value Fund Class NAV		6,020		107,646
Investment Quality Bond Fund Class NAV		13,196		155,055
Large Cap Fund Class NAV		10,722		157,291
Large Cap Value Fund Class NAV		4,507		103,695
Natural Resources Fund Class NAV		5,929		211,088
PowerShares DB Commodity
Index Tracking Fund		4,000		100,000
Quantitative Value Fund Class NAV		6,468		107,115
Real Estate Equity Fund Class NAV		45,918		504,643
Real Return Bond Fund Class NAV		39,215		522,338
Small Company Value Fund Class NAV		6,418		151,669
Spectrum Income Fund Class NAV		30,242		310,583
Strategic Bond Fund Class NAV		17,824		209,793
Strategic Income Fund Class NAV		15,298		153,899
Total Return Fund Class NAV		26,398		362,971
U.S. Government Securities Fund Class NAV		7,609		103,181

				4,808,363

TOTAL INVESTMENT COMPANIES (Cost $4,647,830)			$	4,808,363


SHORT TERM INVESTMENTS - 7.10%
United States Treasury Bill
zero coupon due 09/28/2006	$	371,000	$	369,634

TOTAL SHORT TERM INVESTMENTS
(Cost $369,633)			$	369,634

Total Investments (Absolute Return Fund)
(Cost $5,017,463) - 99.47%			$	5,177,997
Other Assets in Excess of Liabilities - 0.53%				27,777

TOTAL NET ASSETS - 100.00%			$	5,205,774



Active Bond Fund
		Shares or
		Principal
		Amount		Value


PREFERRED STOCKS - 0.06%
Food & Beverages - 0.06%
Ocean Spray Cranberries, Inc. *		3,200	$	254,900

TOTAL PREFERRED STOCKS (Cost $262,400)			$	254,900

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 17.35%
U.S. Treasury Bonds - 2.97%
4.50% due 02/15/2036	$	7,868,000	$	7,405,141
5.375% due 02/15/2031 (a)		650,000		691,539
6.875% due 08/15/2025 (a)		2,080,000		2,567,176
8.75% due 08/15/2020 (a)		1,663,000		2,299,616

				12,963,472
U.S. Treasury Notes - 14.38%
4.25% due 11/15/2013 (a)		7,620,000		7,400,331
4.50% due 11/15/2015 (a)		1,925,000		1,889,959
4.75% due 08/31/2011		9,140,000		9,110,010
4.875% due 08/15/2016		8,480,000		8,576,061
4.875% due 08/15/2009 to 07/31/2011 (a)		17,104,000		17,198,090
5.00% due 07/31/2008 (a)		12,020,000		12,063,200
5.125% due 05/15/2016 (a)		6,355,000		6,535,469

				62,773,120

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $75,006,322)			$	75,736,592


U.S. GOVERNMENT AGENCY OBLIGATIONS - 34.00%
Federal Home Loan Bank - 0.03%
5.80% due 09/02/2008		135,000		136,574
Federal Home Loan Mortgage Corp. - 1.42%
3.952% due 06/01/2034		150,029		145,889
4.50% due 03/01/2019		1,657,130		1,592,532
5.00% due 10/18/2010 (a)		1,330,000		1,325,368
5.168% due 11/01/2035		1,117,575		1,090,942
5.287% due 12/01/2035		1,077,095		1,058,703
5.875% due 03/21/2011 (a)		81,000		83,138
6.00% due 12/01/2035		884,350		886,054

				6,182,626
Federal National Mortgage
Association - 32.45%
2.50% due 06/15/2008		3,039,000		2,904,494
3.765% due 07/01/2033 (b)		7,639		7,538
4.375% due 03/15/2013 (a)		20,000		19,233
4.50% TBA *		6,000,000		5,765,628
5.00% due 05/01/2018 to 04/01/2036		9,217,121		8,986,376
5.00% TBA **		30,000,000		28,840,610
5.057% due 05/01/2035		5,078,666		5,058,651
5.50% due 02/01/2018 to 01/01/2036		11,403,068		11,226,469
5.50% due 03/15/2011 (a)		5,086,000		5,180,701
5.50% TBA **		30,000,000		29,437,500
5.75% due 05/01/2013		755,000		756,773
6.00% due 05/01/2035 to 08/01/2036		17,334,858		17,360,035
6.00% due 05/15/2008 (a)		3,548,000		3,597,949
6.00% TBA **		11,000,000		11,010,318
6.25% due 05/15/2029		157,000		177,669
6.50% due 02/01/2036 to 06/01/2036		5,829,437		5,918,457
6.625% due 09/15/2009 (a)		5,046,000		5,272,823
7.00% due 09/01/2010 to 10/25/2041		137,184		140,115
7.50% due 09/01/2029 to 08/01/2031		8,664		8,972

				141,670,311

The accompanying notes are an integral part of the financial statements. 173

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Government National Mortgage
Association - 0.08%
5.00% due 04/15/2035	$	130,054	$	126,026
5.50% due 03/15/2035		125,142		123,970
6.00% due 03/15/2033 to 06/15/2033		58,903		59,521
6.50% due 09/15/2028 to 08/15/2031		11,220		11,493
7.00% due 04/15/2029		3,341		3,448
8.00% due 10/15/2026		3,324		3,528

				327,986
The Financing Corp. - 0.02%
10.35% due 08/03/2018		75,000		109,438

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $148,030,603)			$	148,426,935


FOREIGN GOVERNMENT OBLIGATIONS - 0.16%
Argentina - 0.02%
Republic of Argentina
zero coupon, Step up to 1.18% on
03/31/2009 due 12/31/2038 (b)	ARS	177,218		28,354
0.275% due 12/15/2035 (b)		393,449		10,924
5.83% due 12/31/2033 (b)		72,870		29,736

				69,014
Canada - 0.00%
Government of Canada
5.50% due 06/01/2010	CAD	5,000		4,753
Chile - 0.05%
Republic of Chile
5.90% due 01/28/2008 (b)	$	223,000		223,781
Colombia - 0.01%
Republic of Colombia
10.00% due 01/23/2012		20,000		23,280
11.75% due 03/01/2010	COP	16,000,000		7,191

				30,471
Japan - 0.01%
Government of Japan
0.90% due 12/22/2008	JPY	550,000		4,712
1.50% due 09/20/2014		1,350,000		11,493
1.80% due 03/22/2010		2,650,000		23,302

				39,507
Mexico - 0.06%
Government of Mexico
8.00% due 12/07/2023	MXN	238,900		20,993
8.00% due 12/19/2013		167,800		15,268
9.875% due 02/01/2010	$	205,000		233,495

				269,756
Panama - 0.00%
Republic of Panama
8.875% due 09/30/2027		6,000		7,320
9.375% due 07/23/2012		2,000		2,315

				9,635

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Peru - 0.00%
Republic of Peru
9.125% due 02/21/2012	$	3,000	$	3,420
9.875% due 02/06/2015		2,000		2,460

				5,880

Philippines - 0.00%
Republic of Philippines
9.125% due 02/22/2010	EUR	2,000		2,872
10.625% due 03/16/2025	$	1,000		1,311

				4,183

Sweden - 0.00%
Kingdom of Sweden
5.00% due 01/28/2009	SEK	30,000		4,290
5.25% due 03/15/2011		30,000		4,424

				8,714

Turkey - 0.01%
Republic of Turkey
20.00% due 10/17/2007	TRY	23,700		17,413

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $685,492)			$	683,107


CORPORATE BONDS - 24.45%
Aerospace - 0.01%
Systems 2001 Asset Trust LLC
6.664% due 09/15/2013	$	45,073		47,212
Air Travel - 0.07%
Continental Airlines Inc., Series 991A
6.545% due 02/02/2019		107,963		109,233
Continental Airlines, Inc., Series 00-2
8.307% due 04/02/2018		178,160		177,066
Delta Air Lines, Inc.
8.00% due 12/15/2007		4,000		950

				287,249

Amusement & Theme Parks - 0.03%
HRP Myrtle Beach Operations LLC
9.8181% due 04/01/2012 (b)		140,000		139,300
Auto Parts - 0.00%
Delphi Trust II
6.197% due 11/15/2033 (b)		2,000		1,280
Auto Services - 0.05%
Erac USA Finance Company
6.70% due 06/01/2034		205,000		211,417
7.95% due 12/15/2009		10,000		10,713

				222,130

Automobiles - 0.14%
DaimlerChrysler N.A. Holding Corp.
4.05% due 06/04/2008		234,000		228,136
5.875% due 03/15/2011		395,000		396,624

				624,760

Banking - 1.57%
Allied Irish Banks PLC
7.50% due 12/29/2049 (b)	EUR	1,000		1,446

The accompanying notes are an integral part of the financial statements. 174

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Banking (continued)
BAC Capital Trust XI
6.625% due 05/23/2036	$	555,000	$	579,181
Banco Santander Chile
5.375% due 12/09/2014		5,000		4,887
5.6325% due 12/09/2009 (b)		18,000		18,090
Bank of Ireland
6.45% due 02/10/2010	EUR	1,000		1,382
BankAmerica Institutional Capital B
7.70% due 12/31/2026	$	125,000		130,310
BNP Paribas Capital Trust
9.003% due 12/29/2049 (b)		350,000		393,434
Chuo Mitsui Trust & Banking Company
5.506% due 04/15/2049 (b)		350,000		333,276
HBOS PLC
3.125% due 01/12/2007		17,000		16,856
5.375% due 11/29/2049 (b)		22,000		21,444
6.413% due 09/29/2049 (b)		450,000		428,130
Independence Community Bank Corp.
3.75% due 04/01/2014 (b)		5,000		4,790
Landsbanki Islands HF
1.00% due 08/25/2009 (b)		490,000		489,883
6.10% due 08/25/2011		295,000		295,580
NB Capital Trust IV
8.25% due 04/15/2027		50,000		52,501
Rabobank Capital Funding II
5.26% due 12/29/2049 (b)		560,000		542,797
RBS Capital Trust IV
6.2988% due 09/29/2049 (b)		18,000		18,065
Royal Bank of Scotland Group PLC
7.648% due 08/31/2049 (b)		580,000		657,292
Sovereign Capital Trust I
9.00% due 04/01/2027		370,000		387,901
TuranAlem Finance BV
7.875% due 06/02/2010		12,000		12,299
USB Capital IX
6.189% due 04/15/2042 (b)		520,000		522,175
Wachovia Capital Trust II
6.0069% due 01/15/2027 (b)		385,000		369,140
Wachovia Capital Trust III
5.80% due 03/15/2042 (b)		700,000		696,885
Washington Mutual Bank, Series BKNT
6.75% due 05/20/2036		400,000		420,656
Washington Mutual, Inc.
4.20% due 01/15/2010		222,000		214,168
5.7369% due 03/22/2012 (b)		7,000		6,980
Wells Fargo Company
3.50% due 04/04/2008 (a)		219,000		213,290

				6,832,838
Broadcasting - 0.62%
Clear Channel Communications, Inc.
5.50% due 09/15/2014 (a)		245,000		226,671
6.00% due 11/01/2006		9,000		9,004
7.65% due 09/15/2010		214,000		225,109
Liberty Media Corp.
6.8294% due 09/17/2006 (b)		32,000		32,011

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Broadcasting (continued)
News America Holdings, Inc.
6.75% due 01/09/2038	$	2,000	$	2,081
7.75% due 12/01/2045		9,000		9,881
8.25% due 08/10/2018		345,000		403,206
Viacom, Inc.
5.75% due 04/30/2011		1,000,000		991,770
6.875% due 04/30/2036		525,000		514,979
XM Satellite Radio Holdings, Inc.
9.75% due 05/01/2014 (a)		330,000		310,200

				2,724,912
Building Materials & Construction - 0.05%
Hanson PLC
6.125% due 08/15/2016		200,000		201,977
Business Services - 0.07%
Electronic Data Systems Corp.
7.125% due 10/15/2009		2,000		2,085
Xerox Corp.
6.75% due 02/01/2017		300,000		300,750

				302,835
Cable and Television - 0.82%
Comcast Corp.
5.90% due 03/15/2016		240,000		237,913
6.50% due 11/15/2035		530,000		522,570
Comcast Corp., Class A
5.30% due 01/15/2014		219,000		211,344
7.05% due 03/15/2033		11,000		11,547
Cox Communications, Inc.
4.625% due 01/15/2010		22,000		21,313
5.45% due 12/15/2014		218,000		207,382
6.75% due 03/15/2011		209,000		216,715
7.125% due 10/01/2012		315,000		333,250
7.75% due 11/01/2010		207,000		222,710
Shaw Communications, Inc.
8.25% due 04/11/2010		275,000		289,094
TCI Communications, Inc.
9.80% due 02/01/2012 (a)		275,000		323,903
Time Warner Companies, Inc.
7.57% due 02/01/2024		34,000		36,435
Time Warner Entertainment Company LP
8.375% due 03/15/2023		280,000		315,043
Time Warner Entertainment Company, LP
8.375% due 07/15/2033		535,000		613,540
Time Warner, Inc.
6.15% due 05/01/2007		13,000		13,051
7.625% due 04/15/2031		9,000		9,746

				3,585,556
Cellular Communications - 0.34%
America Movil S.A. de CV
5.75% due 01/15/2015		275,000		270,668
American Tower Corp.
7.50% due 05/01/2012 (a)		12,000		12,210
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		211,000		230,218
8.75% due 03/01/2031		209,000		264,162

The accompanying notes are an integral part of the financial statements. 175

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cellular Communications (continued)
Cingular Wireless Services, Inc.
8.125% due 05/01/2012	$	240,000	$	268,708
Nextel Communications, Inc.
7.375% due 08/01/2015		2,000		2,058
Nextel Partners, Inc.
8.125% due 07/01/2011		405,000		425,250
Rogers Wireless, Inc.
9.625% due 05/01/2011		8,000		8,940
Verizon Wireless Capital LLC
5.375% due 12/15/2006		22,000		21,992

				1,504,206

Chemicals - 0.11%
Cytec Industries, Inc.
6.75% due 03/15/2008		13,000		13,156
ICI Wilmington, Inc.
4.375% due 12/01/2008		218,000		212,578
Lyondell Chemical Company
10.875% due 05/01/2009 (a)		25,000		25,500
Nova Chemicals Ltd.
7.875% due 09/15/2025		265,000		238,169

				489,403

Computers & Business Equipment - 0.12%
Cisco Systems, Inc.
5.50% due 02/22/2016		510,000		507,759
Construction & Mining Equipment - 0.16%
Caterpillar, Inc.
6.05% due 08/15/2036		305,000		313,988
Kennametal, Inc.
7.20% due 06/15/2012		365,000		385,156

				699,144

Containers & Glass - 0.07%
BWAY Corp.
10.00% due 10/15/2010		290,000		303,775
Crude Petroleum & Natural Gas - 0.00%
Premcor Refining Group, Inc.
7.50% due 06/15/2015		4,000		4,178
Diversified Financial Services - 0.32%
Ford Motor Credit Company
9.75% due 09/15/2010		468,000		484,429
Kinder Morgan Finance Company ULC
6.40% due 01/05/2036		700,000		611,457
Quebecor World Capital Corp.
8.75% due 03/15/2016		115,000		107,525
Tate & Lyle International Finance PLC
5.00% due 11/15/2014		208,000		194,918

				1,398,329

Domestic Oil - 0.25%
Devon Financing Corp., ULC
6.875% due 09/30/2011 (a)		205,000		217,400
Enterprise Products Operating LP
6.375% due 02/01/2013		645,000		658,394

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Domestic Oil (continued)
Hess Corp.
7.30% due 08/15/2031	$	212,000	$	235,890

				1,111,684
Drugs & Health Care - 0.10%
Allegiance Corp.
7.00% due 10/15/2026		205,000		218,785
Wyeth
4.375% due 03/01/2008		210,000		207,110

				425,895
Electrical Equipment - 0.02%
Ametek, Inc.
7.20% due 07/15/2008		90,000		92,246
Electrical Utilities - 2.95%
AES Eastern Energy LP, Series 99-A
9.00% due 01/02/2017		488,603		537,464
AES Gener SA
7.50% due 03/25/2014 (a)		218,000		226,482
American Electric Power Company, Inc.
5.25% due 06/01/2015		210,000		202,276
Appalachian Power Company
5.80% due 10/01/2035		39,000		36,276
Arizona Public Service Company
5.50% due 09/01/2035		222,000		192,212
Beaver Valley Funding Corp.
9.00% due 06/01/2017		395,000		445,509
CenterPoint Energy Houston Electric LLC, Series K2
6.95% due 03/15/2033		10,000		11,028
CenterPoint Energy Resources Corp.
7.875% due 04/01/2013		235,000		259,141
Constellation Energy Group Inc.
7.60% due 04/01/2032		360,000		412,095
CSFB (Empresa Electrica Guacolda SA)
8.625% due 04/30/2013		197,500		217,372
Dominion Resources, Inc.
5.70% due 09/17/2012		207,000		207,382
7.50% due 06/30/2066 (b)		820,000		846,818
Empresa Nacional De Electricidad
8.35% due 08/01/2013		220,000		244,379
8.50% due 04/01/2009		8,000		8,518
Enersis SA
7.375% due 01/15/2014		12,000		12,640
Entergy (Waterford 3 Funding)
8.09% due 01/02/2017		474,148		490,421
Entergy Gulf States, Inc.
5.70% due 06/01/2015		175,000		169,461
FirstEnergy Corp.
6.45% due 11/15/2011		209,000		216,763
7.375% due 11/15/2031		226,000		255,578
HQI Transelec Chile SA
7.875% due 04/15/2011 (a)		325,000		341,951
Indiantown Cogeneration LP, Series A-9
9.26% due 12/15/2010		101,663		106,931
Ipalco Enterprises, Inc.
8.625% due 11/14/2011		285,000		305,662

The accompanying notes are an integral part of the financial statements. 176

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Electrical Utilities (continued)
Monterrey Power SA De CV
9.625% due 11/15/2009	$	157,906	$	172,710
National Grid PLC
6.30% due 08/01/2016		745,000		763,632
Nevada Power Company
6.50% due 05/15/2018		345,000		352,873
6.65% due 04/01/2036		530,000		534,220
Pacific Gas & Electric Company
4.20% due 03/01/2011		246,000		234,630
4.80% due 03/01/2014		212,000		202,728
6.05% due 03/01/2034		834,000		824,302
PSEG Power LLC
5.00% due 04/01/2014		214,000		202,981
8.625% due 04/15/2031		214,000		274,245
Scottish Power PLC
4.91% due 03/15/2010		225,000		220,492
Sierra Pacific Power Company
6.00% due 05/15/2016		840,000		833,771
System Energy Resources, Inc.
5.129% due 01/15/2014		466,355		454,682
Texas-New Mexico Power Company
6.125% due 06/01/2008		440,000		441,753
TransAlta Corp.
5.75% due 12/15/2013		485,000		478,698
TXU Corp., Series R
6.55% due 11/15/2034		715,000		660,915
United Energy Distribution Property, Ltd.
4.70% due 04/15/2011		6,000		5,841
Virginia Electric and Power Company
6.00% due 01/15/2036		500,000		484,060

				12,888,892
Electronics - 0.00%
Jabil Circuit, Inc.
5.875% due 07/15/2010		17,000		17,099
Energy - 0.67%
Duke Capital LLC
6.25% due 02/15/2013 (a)		470,000		476,411
6.75% due 02/15/2032 (a)		511,000		525,823
Enterprise Products Operating LP
4.95% due 06/01/2010		210,000		205,058
Enterprise Products Operating LP, Series B
5.00% due 03/01/2015 (a)		211,000		196,992
6.875% due 03/01/2033		209,000		213,503
Kansas City Power & Light Company, Series B
6.00% due 03/15/2007		11,000		11,031
KN Capital Trust I, Series B
8.56% due 04/15/2027		125,000		122,500
Nexen, Inc.
5.875% due 03/10/2035		212,000		198,333
Northern Border Pipeline Company
6.25% due 05/01/2007		12,000		12,040
Salton Sea Funding Corp., Series E
8.30% due 05/30/2011		176,610		186,365
Salton Sea Funding Corp., Series F
7.475% due 11/30/2018		326,061		341,203

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Energy (continued)
Sempra Energy
4.75% due 05/15/2009	$	208,000	$	204,751
TXU Energy Company, LLC
7.00% due 03/15/2013		217,000		226,420

				2,920,430
Financial Services - 4.29%
American Express Company
6.80% due 09/01/2066		305,000		316,837
American General Finance Corp., Series MTNI
4.875% due 07/15/2012		500,000		483,344
Astoria Depositor Corp.
8.144% due 05/01/2021		500,000		545,215
AXA Financial, Inc.
7.75% due 08/01/2010		210,000		227,205
Bank of New York Institutional Capital Trust A
7.78% due 12/01/2026		60,000		62,568
Bear Stearns Companies, Inc.
5.70% due 11/15/2014		219,000		220,796
Bosphorus Financial Services Ltd
7.205% due 02/15/2012 (b)		375,000		372,186
Capital One Capital III
7.686% due 08/15/2036 (a)		610,000		636,767
Caterpillar Financial Services Corp.
4.50% due 06/15/2009		210,000		206,206
CIT Group, Inc.
5.60% due 04/27/2011		380,000		382,357
5.63% due 05/18/2007 (b)		8,000		8,014
Citigroup, Inc.
5.00% due 09/15/2014		218,000		210,922
5.625% due 08/27/2012		219,000		221,708
CNOOC Finance 2003 Ltd.
5.50% due 05/21/2033		10,000		9,203
Credit Suisse First Boston USA, Inc.
4.625% due 01/15/2008		208,000		206,236
6.50% due 01/15/2012		209,000		219,235
Dresdner Bank-New York
7.25% due 09/15/2015		211,000		234,709
E*Trade Financial Corp.
7.375% due 09/15/2013		310,000		313,100
ERP Operating LP
4.75% due 06/15/2009		13,000		12,793
ESI Tractebel Acquisition Corp., Series B
7.99% due 12/30/2011		550,000		569,353
FleetBoston Financial Corp.
4.875% due 12/01/2006		14,000		13,981
Ford Motor Credit Company
9.875% due 08/10/2011		165,000		172,392
Fund American Companies, Inc.
5.875% due 05/15/2013		214,000		210,095
General Electric Capital Corp.
5.45% due 01/15/2013		261,000		262,668
General Motors Acceptance Corp.
6.75% due 12/01/2014 (a)		315,000		301,986
6.875% due 09/15/2011		232,000		228,492
7.75% due 01/19/2010		42,000		42,691

The accompanying notes are an integral part of the financial statements. 177

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
Goldman Sachs Group, Inc.
5.25% due 04/01/2013	$	224,000	$	220,222
Household Finance Corp.
6.375% due 10/15/2011 (a)		200,000		208,109
6.40% due 06/17/2008		237,000		241,326
HSBC Finance Capital Trust IX
5.911% due 11/30/2035 (b)		300,000		297,447
HSBC Finance Corp.
4.625% due 01/15/2008		213,000		211,222
6.75% due 05/15/2011		520,000		548,969
HVB Funding Trust III
9.00% due 10/22/2031		10,000		12,620
International Lease Finance Corp.
3.50% due 04/01/2009		213,000		203,634
4.55% due 10/15/2009		7,000		6,838
4.75% due 07/01/2009		30,000		29,530
5.00% due 04/15/2010		211,000		207,520
5.875% due 05/01/2013		215,000		219,104
International Lease Finance Corp., Series P
5.9069% due 01/15/2010 (b)		13,000		13,088
International Lease Finance Corp., Series MTN
5.45% due 03/24/2011		1,200,000		1,201,121
Jefferies Group, Inc.
6.25% due 01/15/2036		300,000		286,052
John Deere Capital Corp., Series D
4.125% due 01/15/2010		39,000		37,628
JPMorgan Chase & Company
5.35% due 03/01/2007		9,000		8,995
6.75% due 02/01/2011		218,000		229,867
JSG Funding PLC
9.625% due 10/01/2012		285,000		297,469
Lehman Brothers Holdings, Inc., Series N
4.25% due 01/27/2010		285,000		275,683
MBNA Capital, Series B
6.2888% due 02/01/2027 (b)		23,000		22,712
Merrill Lynch & Company, Inc.
6.05% due 05/16/2016		340,000		350,686
Metallurg Holdings, Inc.
10.50% due 10/01/2010 (a)		355,000		351,450
Mizuho Financial Group (Cayman), Ltd.
8.375% due 12/29/2049		420,000		444,528
Morgan Stanley
4.25% due 05/15/2010		232,000		223,615
MUFG Capital Finance 1, Ltd.
6.346% due 07/29/2049 (b)		540,000		540,544
Nisource Finance Corp.
5.25% due 09/15/2017		640,000		589,542
6.15% due 03/01/2013		219,000		220,509
7.875% due 11/15/2010		216,000		232,124
Nissan Motor Acceptance Corp.
5.625% due 03/14/2011		370,000		370,135
Nuveen Investments, Inc., Class A
5.50% due 09/15/2015		29,000		27,942
Popular North America, Inc.
4.70% due 06/30/2009		12,000		11,738

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
Popular North America, Inc., Series E
6.125% due 10/15/2006	$	14,000	$	14,009
Reliastar Financial Corp.
6.50% due 11/15/2008		14,000		14,321
Residential Capital Corp.
6.00% due 02/22/2011		630,000		626,583
7.3369% due 04/17/2009 (b)		700,000		703,114
Skandinaviska Enskilda Banken AB
5.471% due 03/29/2049 (b)		400,000		377,796
SLM Corp., Series A
5.00% due 04/15/2015		27,000		25,718
St. George Funding Company LLC
zero coupon, Step up to 8.985% on
06/30/2017 due 12/31/2049		495,000		522,582
State Street Institutional Capital A
7.94% due 12/30/2026 (c)		160,000		167,150
The Goldman Sachs Group, Inc.
5.125% due 01/15/2015		247,000		238,896
Trinity Industries Leasing Companies
7.755% due 02/15/2009		310,089		307,763
Ucar Finance, Inc.
10.25% due 02/15/2012		270,000		283,500
Waddell & Reed Financial, Inc.
5.60% due 01/15/2011		400,000		395,263
Westfield Capital Corp, Ltd.
4.375% due 11/15/2010		214,000		205,444

				18,715,167

Food & Beverages - 0.34%
ASG Consolidated LLC/ASG Finance, Inc.
zero coupon, Step up to 11.5% on
11/01/2008 due 11/01/2011		395,000		342,662
Kellogg Company, Series B
6.60% due 04/01/2011		209,000		219,026
Kraft Foods, Inc.
5.625% due 11/01/2011		219,000		220,391
Nabisco, Inc.
7.05% due 07/15/2007		8,000		8,074
7.55% due 06/15/2015		229,000		259,089
Panamerican Beverages, Inc.
7.25% due 07/01/2009		95,000		98,040
Smithfield Foods., Inc.
7.00% due 08/01/2011		18,000		18,067
Tyson Foods, Inc.
6.60% due 04/01/2016		330,000		334,865

				1,500,214

Forest Products - 0.00%
Weyerhaeuser Company
6.125% due 03/15/2007		5,000		5,006
Gas & Pipeline Utilities - 0.51%
CenterPoint Energy Resources Corp.
6.15% due 05/01/2016		530,000		536,446
Dynegy-Roseton Danskammer
7.67% due 11/08/2016		225,000		221,625
Energy Transfer Partners LP
5.95% due 02/01/2015		435,000		432,702

The accompanying notes are an integral part of the financial statements. 178

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
Kinder Morgan Energy Partners LP
5.80% due 03/15/2035	$	208,000	$	186,739
7.30% due 08/15/2033		212,000		227,478
Magellan Midstream Partners LP
6.45% due 06/01/2014		340,000		350,856
MarkWest Energy Partners LP
8.50% due 07/15/2016		260,000		263,250
Michigan Consolidated Gas Company
5.70% due 03/15/2033		14,000		13,080

				2,232,176
Healthcare Products - 0.09%
Boston Scientific Corp.
6.40% due 06/15/2016		395,000		399,806
Healthcare Services - 0.18%
Coventry Health Care, Inc.
5.875% due 01/15/2012		225,000		222,332
UnitedHealth Group, Inc.
5.375% due 03/15/2016		240,000		235,358
5.80% due 03/15/2036		115,000		111,063
WellPoint, Inc.
3.50% due 09/01/2007		14,000		13,685
3.75% due 12/14/2007		10,000		9,792
5.00% due 12/15/2014		208,000		199,408

				791,638
Holdings Companies/Conglomerates - 0.38%
General Electric Company
5.00% due 02/01/2013		1,037,000		1,017,974
Siemens Financierings NV
6.125% due 08/17/2026		600,000		612,989
SPI Electricity & Gas Australia Holdings Party Ltd.
6.15% due 11/15/2013		16,000		16,532

				1,647,495
Homebuilders - 0.05%
Pulte Homes, Inc.
6.25% due 02/15/2013		210,000		210,134
Hotels & Restaurants - 0.22%
Hilton Hotels Corp.
8.25% due 02/15/2011		9,000		9,672
Hyatt Equities LLC
6.875% due 06/15/2007		185,000		186,255
Marriott International, Inc.
4.625% due 06/15/2012		26,000		24,604
Starwood Hotels & Resorts Worldwide, Inc.
7.875% due 05/01/2012		680,000		736,100

				956,631
Industrial Machinery - 0.19%
Caterpillar, Inc.
7.25% due 09/15/2009		213,000		225,475
Weatherford International, Ltd.
6.50% due 08/01/2036		600,000		611,145

				836,620

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Insurance - 2.56%
Ace INA Holdings, Inc.
6.70% due 05/15/2036	$	420,000	$	429,265
Allied World Assurance Holdings Ltd.
7.50% due 08/01/2016		855,000		874,994
American International Group, Inc.
5.05% due 10/01/2015		350,000		338,489
AmerUs Group Company
6.583% due 05/16/2011		255,000		264,293
AON Capital Trust A
8.205% due 01/01/2027		390,000		442,882
Assurant, Inc.
5.625% due 02/15/2014		209,000		206,473
6.75% due 02/15/2034		550,000		568,904
Cincinnati Financial Corp.
6.92% due 05/15/2028		960,000		1,037,259
CNA Financial Corp.
5.85% due 12/15/2014		333,000		326,431
6.00% due 08/15/2011		280,000		281,871
Endurance Specialty Holdings Ltd.
7.00% due 07/15/2034		300,000		284,917
First American Corp.
7.55% due 04/01/2028 (a)		290,000		313,712
Hartford Financial Services Group, Inc.
4.625% due 07/15/2013		8,000		7,593
Horace Mann Educators Corp.
6.85% due 04/15/2016		230,000		232,882
Liberty Mutual Group, Inc.
6.50% due 03/15/2035		683,000		625,407
7.50% due 08/15/2036		200,000		206,565
Liberty Mutual Insurance Company
7.697% due 10/15/2097		300,000		297,147
Markel Corp.
6.80% due 02/15/2013		325,000		334,672
7.35% due 08/15/2034		325,000		330,890
Marsh & McLennan Companies, Inc.
5.375% due 03/15/2007		16,000		15,985
5.375% due 07/15/2014		206,000		196,784
5.75% due 09/15/2015		238,000		231,797
MetLife, Inc.
5.70% due 06/15/2035		255,000		242,389
Odyssey Re Holdings Corp.
7.65% due 11/01/2013		15,000		14,530
Ohio Casualty Corp.
7.30% due 06/15/2014		320,000		337,908
Prudential Financial, Inc.
4.75% due 04/01/2014		227,000		215,520
RenaissanceRe Holdings, Ltd.
7.00% due 07/15/2008		400,000		408,803
Symetra Financial Corp.
6.125% due 04/01/2016		350,000		350,389
The Phoenix Companies, Inc.
6.675% due 02/16/2008		230,000		231,432
Travelers Property Casualty Corp.
6.375% due 03/15/2033		21,000		21,093
W.R. Berkley Corp.
5.125% due 09/30/2010		900,000		886,670

The accompanying notes are an integral part of the financial statements. 179

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Insurance (continued)
W.R. Berkley Corp. (continued)
6.15% due 08/15/2019	$	14,000	$	13,832
XL Capital, Ltd.
5.25% due 09/15/2014		214,000		204,810
Zurich Capital Trust I
8.376% due 06/01/2037		375,000		396,066

				11,172,654
International Oil - 0.41%
Delek & Avner-Yam Tethys Ltd.
5.326% due 08/01/2013		20,540		20,006
Pemex Project Funding Master Trust
6.125% due 08/15/2008		13,000		13,052
6.6294% due 06/15/2010 (b)		18,000		18,414
9.125% due 10/13/2010		320,000		356,800
Pioneer Natural Resources Company
5.875% due 07/15/2016		207,000		193,091
6.875% due 05/01/2018		500,000		493,699
Ras Laffan Liquefied Natural Gas
3.437% due 09/15/2009		17,766		17,168
Ras Laffan LNG III
5.838% due 09/30/2027		250,000		243,120
Vintage Petroleum, Inc.
8.25% due 05/01/2012		400,000		422,000

				1,777,350
Investment Companies - 0.17%
Allied Capital Corp.
6.625% due 07/15/2011		750,000		761,251
Leisure Time - 0.60%
AMC Entertainment, Inc.
9.50% due 02/01/2011 (a)		245,000		244,388
Caesars Entertainment, Inc.
7.00% due 04/15/2013		319,000		329,284
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		180,000		179,775
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014		235,000		233,825
Majestic Star Casino LLC
9.75% due 01/15/2011		295,000		288,363
MGM Mirage, Inc.
6.00% due 10/01/2009		16,000		15,640
6.375% due 12/15/2011 (a)		212,000		204,050
6.75% due 04/01/2013		255,000		246,075
Mohegan Tribal Gaming Authority
6.375% due 07/15/2009		208,000		205,400
8.00% due 04/01/2012		150,000		154,687
MTR Gaming Group, Inc.
9.00% due 06/01/2012		60,000		60,450
MTR Gaming Group, Inc., Series B
9.75% due 04/01/2010		220,000		231,275
Pokagon Gaming Authority
10.375% due 06/15/2014		100,000		105,750
Waterford Gaming, LLC
8.625% due 09/15/2012		100,000		105,375

				2,604,337

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Liquor - 0.00%
Anheuser-Busch Companies, Inc.
6.50% due 02/01/2043	$	10,000	$	10,751
Manufacturing - 0.26%
Tyco International Group SA
6.875% due 01/15/2029		1,000,000		1,116,112
Medical-Hospitals - 0.43%
Alliance Imaging, Inc.
7.25% due 12/15/2012 (a)		275,000		255,750
HCA, Inc.
6.375% due 01/15/2015		226,000		179,670
6.50% due 02/15/2016 (a)		200,000		157,500
7.875% due 02/01/2011		208,000		198,120
Health Management Associates, Inc.
6.125% due 04/15/2016		495,000		472,339
HealthSouth Corp.
11.4181% due 06/15/2014 (a)(b)		230,000		236,325
Manor Care, Inc.
6.25% due 05/01/2013		355,000		356,239

				1,855,943

Metal & Metal Products - 0.10%
Alcan, Inc.
5.00% due 06/01/2015		6,000		5,694
Inco Ltd.
7.75% due 05/15/2012		234,000		254,524
Vedanta Resources PLC
6.625% due 02/22/2010 (a)		160,000		157,000

				417,218

Mining - 0.09%
Corporacion Nacional del Cobre
5.50% due 10/15/2013 (a)		209,000		206,679
Drummond Company, Inc.
7.375% due 02/15/2016		195,000		183,300

				389,979

Paper - 0.17%
Abitibi-Consolidated, Inc.
6.00% due 06/20/2013		195,000		160,875
Plum Creek Timberlands LP
5.875% due 11/15/2015		295,000		290,148
Verso Paper Holdings LLC and Verso Paper, Inc.
9.125% due 08/01/2014		310,000		308,450

				759,473

Petroleum Services - 0.26%
Enterprise Products Operating LP
8.375% due 08/01/2066 (b)		700,000		729,729
Premcor Refining Group, Inc.
9.50% due 02/01/2013		150,000		163,835
Valero Logistics Operations LP
6.05% due 03/15/2013		248,000		249,975

				1,143,539

Pharmaceuticals - 0.36%
Allergan, Inc.
5.75% due 04/01/2016		400,000		402,029

The accompanying notes are an integral part of the financial statements. 180

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Pharmaceuticals (continued)
AmerisourceBergen Corp.
5.875% due 09/15/2015	$	39,000	$	37,791
Caremark Rx, Inc.
7.375% due 10/01/2006		255,000		255,280
Hospira, Inc.
5.90% due 06/15/2014		8,000		8,045
Medco Health Solutions, Inc.
7.25% due 08/15/2013		295,000		319,159
Schering Plough Corp.
5.55% due 12/01/2013		218,000		217,581
Teva Pharmaceutical Finance LLC
5.55% due 02/01/2016		170,000		165,134
6.15% due 02/01/2036		170,000		160,575

				1,565,594
Real Estate - 1.78%
Boston Properties, Ltd., REIT
6.25% due 01/15/2013		215,000		221,746
Camden Property Trust, REIT
5.00% due 06/15/2015		216,000		204,917
Colonial Properties Trust, REIT
6.25% due 06/15/2014 (a)		211,000		214,353
Colonial Realty LP
5.50% due 10/01/2015		231,000		223,324
Developers Diversified Realty Corp., REIT
4.625% due 08/01/2010		22,000		21,246
Duke Realty Corp., REIT
5.6969% due 12/22/2006 (b)		8,000		8,006
Duke Realty LP
5.95% due 02/15/2017		975,000		981,489
Equity One, Inc., REIT
6.25% due 01/15/2017		260,000		264,293
Health Care Property Investors, Inc.,
Series MTN, REIT
4.875% due 09/15/2010		229,000		222,513
5.625% due 02/28/2013		520,000		509,919
Health Care REIT, Inc.
6.00% due 11/15/2013		215,000		212,854
6.20% due 06/01/2016		540,000		538,860
Healthcare Realty Trust, Inc., REIT
8.125% due 05/01/2011		360,000		390,909
Hospitality Properties Trust, REIT
6.75% due 02/15/2013		612,000		639,617
iStar Financial, Inc., REIT
6.05% due 04/15/2015		20,000		20,065
Nationwide Health Properties, Inc., REIT
6.50% due 07/15/2011		250,000		254,663
Price, Inc., REIT
7.50% due 11/05/2006		9,000		9,024
Rouse Company LP, REIT
6.75% due 05/01/2013		420,000		418,155
Rouse Company, REIT
3.625% due 03/15/2009		645,000		608,385
5.375% due 11/26/2013		209,000		191,296
Simon Property Group LP, REIT
5.75% due 12/01/2015		530,000		530,224

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Real Estate (continued)
Socgen Real Estate Company LLC
7.64% due 12/29/2049 (b)	$	274,000	$	280,112
Vornado Realty, LP
5.60% due 02/15/2011		800,000		799,241

				7,765,211
Retail - 0.16%
CVS Corp.
6.125% due 08/15/2016		515,000		523,986
JC Penney Corp., Inc.
8.125% due 04/01/2027		185,000		190,958

				714,944
Retail Grocery - 0.05%
Delhaize America, Inc.
9.00% due 04/15/2031		200,000		233,994
Telecommunications Equipment &
Services - 0.88%
Citizens Communications Company
6.25% due 01/15/2013		255,000		246,394
9.00% due 08/15/2031		160,000		168,800
Deutsche Telekom International Finance BV
5.75% due 03/23/2016 (a)		1,000,000		972,734
6.625% due 07/11/2011	EUR	1,000		1,420
8.00% due 06/15/2010	$	222,000		241,423
8.25% due 06/15/2030 (b)		227,000		273,841
Embarq Corp.
7.082% due 06/01/2016		1,250,000		1,275,422
France Telecom SA
7.75 due 03/01/2011		20,000		21,839
8.50% due 03/01/2031 (b)		220,000		280,722
Intelsat Ltd.
10.4844% due 01/15/2012 (b)		100,000		101,500
SBC Communications, Inc.
4.125% due 09/15/2009		207,000		199,788
5.10% due 09/15/2014		16,000		15,259
5.625% due 06/15/2016		12,000		11,747
Singapore Telecommunications, Ltd.
6.375% due 12/01/2011		9,000		9,377

				3,820,266
Telephone - 1.18%
AT&T Corp.
8.00% due 11/15/2031 (b)		435,000		519,706
AT&T, Inc.
6.80% due 05/15/2036		400,000		413,604
BellSouth Corp.
4.20% due 09/15/2009		212,000		204,938
6.00% due 11/15/2034 (a)		820,000		752,624
Sprint Capital Corp.
6.125% due 11/15/2008		216,000		218,869
6.375% due 05/01/2009		212,000		216,879
6.875% due 11/15/2028		642,000		648,270
8.375% due 03/15/2012		207,000		231,338
8.75% due 03/15/2032		317,000		384,384
Telecom Italia Capital SA
4.00% due 01/15/2010		215,000		204,286

The accompanying notes are an integral part of the financial statements. 181

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Telephone (continued)
Telecom Italia Capital SA (continued)
4.00% due 11/15/2008	$	169,000	$	163,758
7.20% due 07/18/2036		845,000		882,521
Verizon Communications, Inc.
5.55% due 02/15/2016		300,000		292,236
Verizon, New York, Inc.
6.875% due 04/01/2012 (a)		15,000		15,575

				5,148,988

Tobacco - 0.06%
Altria Group, Inc.
7.00% due 11/04/2013		6,000		6,527
Reynolds American, Inc.
7.25% due 06/01/2013		235,000		240,719

				247,246

Transportation - 0.10%
CMA CGM SA
7.25% due 02/01/2013		455,000		429,975
Overseas Shipholding Group, Inc.
8.25% due 03/15/2013		2,000		2,060

				432,035

Travel Services - 0.04%
TDS Investor Corp.
9.875% due 09/01/2014		165,000		161,700
Utility Service - 0.00%
Public Service Company of New Mexico
4.40% due 09/15/2008		13,000		12,718

TOTAL CORPORATE BONDS (Cost $107,597,740)			$	106,739,279


COLLATERALIZED MORTGAGE
OBLIGATIONS - 19.38%
American Home Mortgage Investment Trust,
Series 2004-4, Class 5A
4.44% due 02/25/2045		1,069,708		1,045,539
Banc of America Commercial Mortgage, Inc.,
Series 2004-4, Class A3
4.128% due 07/10/2042		32,284		31,332
Banc of America Commercial Mortgage, Inc.,
Series 2005-2, Class AJ
4.953% due 07/10/2043 (b)		50,846		48,866
Banc of America Commercial Mortgage, Inc.,
Series 2005-4, Class A5A
4.933% due 07/10/2045		245,000		235,830
Banc of America Commercial Mortgage, Inc.,
Series 2005-6, Class A4
5.3539% due 09/10/2047 (b)		470,000		463,009
Banc of America Commercial Mortgage, Inc.,
Series 2005-6, Class H
5.3539% due 09/10/2047 (b)		350,000		333,481
Banc of America Commercial Mortgage, Inc.,
Series 2006-1, Class AM
5.421% due 09/10/2045 (b)		1,600,000		1,585,897
Banc of America Commercial Mortgage, Inc.,
Series 2006-1, Class XC
5.421% due 09/10/2045 (b)		52,752,102		381,398

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Banc of America Commercial Mortgage, Inc.,
Series 2006-2, Class A3
5.9024% due 05/10/2045 (b)	$	1,365,000	$	1,392,049
Banc of America Commercial Mortgage, Inc.,
Series 2006-3, Class A4
5.889% due 07/10/2044		775,000		797,460
Banc of America Commercial Mortgage, Inc.,
Series 2006-4, Class A3A
5.60% due 08/10/2013		750,000		753,756
Banc of America Commercial Mortgage, Inc.,
Series 2006-4, Class XC
1.00% due 07/10/2046		63,999,741		789,981
Banc of America Funding Corp., Series 2006-B,
Class 6A1
5.9003% due 03/20/2036 (b)		588,959		591,291
Banc of America Funding Corp., Series 2006-D,
Class 6B1
5.9793% due 05/20/2036 (b)		324,879		324,474
Banc of America Large Loan,
Series 2005-MIB1, Class B
5.59% due 03/15/2022 (b)		895,000		895,561
Banc of America Large Loan, Series 2006-LAQ,
Class H
6.0481% due 02/09/2021 (b)		525,000		526,980
Bank of America Commercial Mortgage, Inc.,
Series 2001-3, Class A1
4.89% due 04/11/2037		11,140		11,063
Bear Stearns Alt-A Trust, Series 2005-3, Class B2
5.3298% due 04/25/2035 (b)		194,551		192,868
Bear Stearns Alt-A Trust, Series 2006-1, Class 23A1
5.6447% due 02/25/2036 (b)		532,832		531,711
Bear Stearns Alt-A Trust, Series 2006-3, Class 34A1
6.2201% due 05/25/2036 (b)		644,107		650,386
Bear Stearns Asset Backed Securities, Inc., Series
2003-AC4, Class A
5.00% due 09/25/2033		13,351		13,080
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2004-PWR5, Class X1
0.076% IO due 07/11/2042 (b)		489,672		10,227
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2004-T16, Class X1
0.1769% IO due 02/13/2046 (b)		589,452		11,501
Bear Stearns Commercial Mortgage Securities,
Series 2005-PWR8, Class AJ
4.75% due 06/11/2041		47,292		44,667
Bear Stearns Commercial Mortgage Securities,
Series 2005-T20, Class A4A
5.3028% due 10/12/2042 (b)		260,000		255,787
Bear Stearns Commercial Mortgage Securities,
Series 2006-BBA7, Class G
5.77% due 03/15/2019 (b)		700,000		699,996
Bear Stearns Commercial Mortgage Securities,
Series 2002-TOP8, Class A2
4.83% due 08/15/2038		870,000		846,804
Chase Commercial Mortgage Securities Corp.,
Series 2000-2, Class C
7.928% due 07/15/2032		29,619		32,282

The accompanying notes are an integral part of the financial statements. 182

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Chaseflex Trust, Series 2005-2, Class 4A1
5.00% due 05/25/2020	$	363,450	$	353,115
Citigroup Commercial Mortgage Trust,
Series 2006-C4, Class A3
5.9111% due 03/15/2049 (b)		575,000		588,903
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-10, Class 1A5A
5.8871% due 12/25/2035 (b)		505,110		506,224
Citigroup Mortgage Loan Trust, Inc., Series 2005-5,
Class 2A3
5.00% due 08/25/2035		343,673		334,759
Citigroup Mortgage Loan Trust, Inc.,
Series 2006-AR1, Class 1A1
4.90% due 10/25/2035 (b)		1,387,242		1,369,806
Citigroup Mortgage Loan Trust, Inc.,
Series 2006-WF2, Class A2C
5.852% due 05/25/2036		2,000,000		2,009,316
Citigroup/Deutsche Bank Commercial Mortgage
Trust, Series 2005-CD1, Class C
5.3997% due 07/15/2044 (b)		190,000		186,298
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2005-CD1, Class A4
5.3997% due 07/15/2044 (b)		360,000		355,671
Citigroup/Deutsche Bank Commercial Mortgage,
Series 2006-CD2, Class AM
5.5915% due 01/15/2046 (b)		1,000,000		998,035
Citigroup/Deutsche Bank Commercial Mortgage,
Series 2006-CD2, Class X
0.1294% IO due 01/15/2046 (b)		110,577,392		647,829
Commercial Mortgage Pass-Through Certificates,
Series 2005-C6, Class XC1
0.04% IO due 06/10/2044 (b)		6,827,298		46,611
Commercial Mortgage Pass-Through Certificates,
Series 2006-C7, Class A3
5.9003% due 06/10/2046 (b)		540,000		551,288
Commercial Mortgage Pass-Through Certificates,
Series 2006-CN2A, Class H
5.7556% due 02/05/2019 (b)		380,000		379,483
Commercial Mortgage, Series 2003-LB1A, Class A2
4.084% due 06/10/2038		49,859		46,280
Commercial Mortgage, Series 2005-C6, Class B
5.3994% due 06/10/2044 (b)		49,365		48,415
Commercial Mortgage, Series 2005-C6, Class G
5.459% due 06/10/2044		25,000		23,886
Commercial Mortgage, Series 2005-FL11, Class AJ
5.53% due 11/15/2017 (b)		595,000		595,182
Countrywide Alternative Loan Trust,
Series 2004-24CB, Class 1A1
6.00% due 11/25/2034		269,906		268,388
Countrywide Alternative Loan Trust,
Series 2005-2, Class 1A1
5.1009% due 03/25/2035 (b)		1,998,417		1,992,681
Countrywide Alternative Loan Trust,
Series 2005-J1, Class 3A1
6.50% due 08/25/2032		153,724		154,829

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Countrywide Alternative Loan Trust,
Series 2006-11CB, Class 3A1
6.50% due 05/25/2036	$	933,143	$	939,308
Countrywide Home Loan Mortgage Pass Through
Trust, Series 2004-HYB2, Class 4A
4.5341% due 07/20/2034 (b)		1,693,565		1,669,882
Countrywide Home Loan Trust, Series 2005-HYB5
4.9162% due 09/20/2035 (b)		786,932		776,439
Countrywide Home Loan Trust, Series 2005-HYB6,
Class 1A1
5.0516% due 10/20/2035 (b)		1,302,810		1,295,344
Countrywide Home Loans, Series 2005-6, Class 2A1
5.50% due 04/25/2035		300,910		291,130
Credit Suisse Mortgage Capital Certificates,
Series 2006-TFLA, Class B
5.56% due 04/15/2021 (b)		870,000		870,268
Crown Castle Towers LLC,
Series 2005-1A, Class AFX
4.643% due 06/15/2035		305,000		298,179
Crown Castle Towers LLC, Series 2005-1A, Class D
5.612% due 06/15/2035		511,000		509,356
CS First Boston Mortgage Securities Corp.,
Series 2001-CF2, Class A3
6.238% due 02/15/2034		17,860		18,000
CS First Boston Mortgage Securities Corp.,
Series 2001-CKN5, Class A4
5.435% due 09/15/2034		34,555		34,726
CS First Boston Mortgage Securities Corp.,
Series 2001-CP4, Class A4
6.18% due 12/15/2035		32,087		33,207
CS First Boston Mortgage Securities Corp.,
Series 2002-CKN2, Class A3
6.133% due 04/15/2037		19,746		20,483
CS First Boston Mortgage Securities Corp.,
Series 2004-C4, Class A4
4.283% due 10/15/2039		10,860		10,358
CS First Boston Mortgage Securities Corp.,
Series 2005-C1, Class AX
0.1002% IO due 02/15/2038 (b)		1,186,173		14,080
CS First Boston Mortgage Securities Corp.,
Series 2005-C1, Class F
4.821% due 02/15/2038		20,000		18,609
CS First Boston Mortgage Securities Corp.,
Series 2005-C2, Class B
5.016% due 04/15/2037 (b)		58,053		55,891
CS First Boston Mortgage Securities Corp.,
Series 2005-C4, Class F
5.5716% due 08/15/2038 (b)		50,000		48,378
CS First Boston Mortgage Securities Corp.,
Series 2005-C4, Class G
5.5716% due 08/15/2038 (b)		40,000		38,439
Federal Home Loan Mortgage Corp., Series 24989,
Class PE
6.00% due 08/15/2032		405,000		409,718
Federal Home Loan Mortgage Corp.,
Series 2003-2640, Class WA
3.50% due 03/15/2033		107,642		103,235

The accompanying notes are an integral part of the financial statements. 183

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp.,
Series 2005-3019, Class MD
4.75% due 01/15/2031	$	2,518,412	$	2,481,590
Federal Home Loan Mortgage Corp.,
Series 2006-3153, Class NE
5.50% due 05/15/2034		795,000		778,254
Federal Home Loan Mortgage Corp.,
Series 2006-3154, Class PM
5.50% due 05/15/2034		680,000		663,624
Federal Home Loan Mortgage Corp.,
Series 2006-3184, Class PD
5.50% due 07/15/2034		2,320,000		2,273,948
Federal National Mortgage Association Whole
Loan, Series 2002-W3, Class A5
7.50% due 01/25/2028		10,664		11,047
Federal National Mortgage Association,
Series 2003-18, Class EX
4.00% due 06/25/2017		2,093,910		2,015,108
Federal National Mortgage Association,
Series 2003-33, Class AC
4.25% due 03/25/2033		93,077		88,725
Federal National Mortgage Association,
Series 2003-49, Class JE
3.00% due 04/25/2033		413,591		365,681
Federal National Mortgage Association,
Series 2003-58, Class AD
3.25% due 07/25/2033		270,184		245,112
Federal National Mortgage Association,
Series 2003-63, Class PE
3.50% due 07/25/2033		214,652		193,865
Federal National Mortgage Association,
Series 2006-57, Class PD
5.50% due 01/25/2035		885,000		863,722
Federal National Mortgage Association,
Series 2006-64, Class PC
5.50% due 10/25/2034		690,000		673,332
Federal National Mortgage Association,
Series 2006-65, Class HE
5.50% due 02/25/2035		995,000		969,387
Federal National Mortgage Association,
Series 2006-67, Class PD
5.50% due 12/25/2034		720,000		702,620
FHLMC Structured Pass Through Securities,
Series T-41, Class 3A
7.50% due 07/25/2032		5,513		5,706
First Horizon Alternative Mortgage Securities,
Series 2004-AA2, Class 2A1
5.0044% due 08/25/2034 (b)		1,760,693		1,747,201
First Horizon Alternative Mortgage Securities,
Series 2004-AA5, Class B1
5.2331% due 12/25/2034 (b)		152,507		150,657
First Horizon Alternative Mortgage Securities,
Series 2006-AA2, Class B1
6.239% due 05/25/2036 (b)		199,901		201,763
First Union National Bank Commercial Mortgage
Trust, Series 2001-C2, Class A1
6.204% due 01/12/2043		30,385		30,664

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
First Union National Bank Commercial Mortgage
Trust, Series 2002-C1, Class A1
5.585% due 02/12/2034	$	12,385	$	12,455
GE Capital Commercial Mortgage Corp.,
Series 2001-3, Class A2
6.07% due 06/10/2038		22,214		22,980
GE Capital Commercial Mortgage Corp.,
Series 2002-2A, Class A3
5.349% due 08/11/2036		14,809		14,818
GE Capital Commercial Mortgage Corp.,
Series 2005-C1, Class XC
0.0939% IO due 06/10/2048 (b)		1,728,308		22,590
GE Capital Commercial Mortgage Corp.,
Series 2005-C2, Class C
5.133% due 05/10/2043 (b)		43,737		42,488
GE Capital Commercial Mortgage Corp.,
Series 2005-C4, Class H
5.5114% due 11/10/2045 (b)		450,000		430,610
Global Signal Trust, Series 2004-2A, Class D
5.093% due 12/15/2014		295,000		290,969
Global Signal Trust, Series 2006-1, Class E
6.495% due 02/15/2036		367,000		371,257
GMAC Commercial Mortgage Securities, Inc.,
Series 2001-C1, Class A1
5.988% due 04/15/2034		38,878		38,889
GMAC Commercial Mortgage Securities, Inc.,
Series 2002-C1, Class A1
5.785% due 11/15/2039		244,333		246,513
GMAC Commercial Mortgage Securities, Inc.,
Series 2006-C1, Class AJ
5.349% due 11/10/2045 (b)		945,000		927,097
GMAC Mortgage Corp. Loan Trust,
Series 2006-AR1, Class 2A1
5.6532% due 04/19/2036 (b)		347,899		347,408
Government National Mortgage Association,
Series 2003-42, Class XA
3.75% due 05/16/2033		5,152		4,797
Greenwich Capital Commercial Funding Corp.,
Series 2002-C1, Class A2
4.112% due 01/11/2017		43,890		42,762
Greenwich Capital Commercial Funding Corp.,
Series 2003-C2, Class A2
4.022% due 01/05/2036		50,000		48,550
Greenwich Capital Commercial Funding Corp.,
Series 2005-GG5, Class A2
5.117% due 04/10/2037		705,000		701,052
Greenwich Capital Commercial Funding Corp.,
Series 2006-GG7, Class A4
6.1101% due 07/10/2038 (b)		735,000		762,402
GS Mortgage Securities Corp. II, Series 2005-GG4,
Class E
5.078% due 07/10/2039 (b)		52,919		50,645
GS Mortgage Securities Corp. II, Series 2005-GG4,
Class XC
0.1089% IO due 07/10/2039 (b)		2,091,132		41,349

The accompanying notes are an integral part of the financial statements. 184

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
GS Mortgage Securities Corp. II, Series 2006-GG6,
Class AM
5.622% due 04/10/2038 (b)	$	1,350,000	$	1,360,777
GSR Mortgage Loan Trust, Series 2004-14,
Class 3A2
4.58% due 12/25/2034 (b)		1,483,643		1,465,967
GSR Mortgage Loan Trust, Series 2004-9, Class B1
4.5716% due 08/25/2034 (b)		374,731		367,525
GSR Mortgage Loan Trust, Series 2006-AR1,
Class 3A1
5.4193% due 01/25/2036 (b)		895,946		887,851
Harborview NIM Corp., Series 2006-BU1, Class N1
5.93% due 02/20/2046		366,073		366,101
IndyMac Index Mortgage Loan Trust,
Series 2004-AR13, Class B1
5.296% due 01/25/2035		269,174		268,307
IndyMac Index Mortgage Loan Trust,
Series 2005-AR5, Class B1
5.399% due 05/25/2035 (b)		134,409		135,851
IndyMac Index Mortgage Loan Trust,
Series 2006-AR19, Class 1B1
6.4484% due 08/25/2036 (b)		299,491		299,246
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2006-LDP7, Class A4
6.0658% due 04/15/2045 (b)		490,000		507,258
JPMorgan Chase Commercial Mortgage Securities
Corp., Series 2002-C1, Class A3
5.376% due 07/12/2037		51,734		51,846
JPMorgan Chase Commercial Mortgage Securities
Corp., Series 2004-CBX, Class A2
3.89% due 01/12/2037		14,809		14,422
JPMorgan Chase Commercial Mortgage Securities
Corp., Series 2005-LDP3, Class A4B
4.996% due 08/15/2042 (b)		515,000		496,566
JPMorgan Chase Commercial Mortgage Securities
Corp., Series 2005-LDP4, Class B
5.129% due 10/15/2042 (b)		145,000		140,524
JPMorgan Chase Commercial Mortgage Securities
Corp., Series 2006-LDP6, Class X1
0.0400% IO due 04/15/2043 (b)		82,143,403		439,755
JPMorgan Mortgage Trust, Series 2005-S2,
Class 2A16
6.50% due 09/25/2035		281,153		285,665
JPMorgan Mortgage Trust, Series 2005-S3,
Class 2A2
5.50% due 01/25/2021		571,361		565,290
LB-UBS Commercial Mortgage Trust,
Series 2002-C1,Class A4
6.462% due 03/15/2031		29,619		31,183
LB-UBS Commercial Mortgage Trust,
Series 2005-C1, Class XCL
0.1548% IO due 02/15/2040 (b)		743,616		15,888
LB-UBS Commercial Mortgage Trust,
Series 2005-C3, Class AJ
4.843% due 07/15/2040		40,874		38,969

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
LB-UBS Commercial Mortgage Trust,
Series 2005-C3, Class G
5.111% due 07/15/2040 (b)	$	25,472	$	24,411
LB-UBS Commercial Mortgage Trust,
Series 2005-C5, Class A2
4.885% due 09/15/2040		58,053		57,404
LB-UBS Commercial Mortgage Trust,
Series 2006-C4, Class A4
6.0977% due 06/15/2038 (b)		575,000		593,751
Mastr Adjustable Rate Mortgages Trust,
Series 2004-13, Class 2A1
3.817% due 04/21/2034 (b)		1,962,460		1,909,427
Mastr Adjustable Rate Mortgages Trust,
Series 2004-8, Class 5A1
4.664% due 08/25/2034 (b)		1,029,143		1,014,603
Mastr Adjustable Rate Mortgages Trust,
Series 2005-2, Class 2A1
5.1333% due 03/25/2035 (b)		2,227,021		2,217,889
Mastr Adjustable Rate Mortgages Trust,
Series 2006-2, Class 4A1
4.9891% due 02/25/2036 (b)		755,390		745,151
Merrill Lynch Mortgage Trust, Series 2006-C2,
Class X
5.87% IO due 08/12/2026		15,784,187		495,000
Merrill Lynch Mortgage Trust, Series 2004-BPB1,
Class XC
0.058% IO due 09/12/2041		491,045		9,733
Merrill Lynch Mortgage Trust,
Series 2004-KEY2, Class A4
4.864% due 08/12/2039 (b)		31,988		30,654
Merrill Lynch Mortgage Trust, Series 2005-CIP1,
Class XC
0.041% IO due 07/12/2038		5,570,641		36,220
Merrill Lynch Mortgage Trust, Series 2005-CKI1,
Class A6
5.4172% due 11/12/2037 (b)		435,000		430,079
Merrill Lynch Mortgage Trust, Series 2006-C1,
Class AM
5.8442% due 05/12/2039 (b)		1,000,000		1,016,880
Merrill Lynch/Countrywide Commercial Mortgage
Trust, Series 2006-2, Class A4
6.105% due 06/12/2046 (b)		785,000		813,602
Morgan Stanley Capital I, Series 2004-T13, Class A2
3.94% due 09/13/2045		27,150		26,090
Morgan Stanley Capital I, Series 2005-HQ7,
Class A2
5.3752% due 11/14/2042 (b)		415,000		412,193
Morgan Stanley Capital I, Series 2005-HQ7,
Class A4
5.3752% due 11/14/2042 (b)		415,000		409,355
Morgan Stanley Capital I, Series 2005-IQ10,
Class A4A
5.23% due 09/15/2042 (b)		675,000		663,282
Morgan Stanley Capital I, Series 2005-IQ9, Class X1
0.123% IO due 07/15/2056 (b)		690,081		19,983
Morgan Stanley Capital I, Series 2005-T17, Class X1
0.1012% IO due 12/13/2041 (b)		1,482,541		22,458

The accompanying notes are an integral part of the financial statements. 185

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Morgan Stanley Capital I, Series 2006-HQ8, Class X
0.1081% IO due 03/12/2044 (b)	$	113,000,000	$	582,594
Morgan Stanley Capital I, Series 2006-HQ9, Class X
0.395% IO due 07/20/2044 (b)		53,857,143		1,001,312
Morgan Stanley Capital I, Series 2006-T21, Class X
0.2748% IO due 10/12/2052 (b)		20,476,520		291,921
Morgan Stanley Capital I, Series 2006-T23, Class A4
5.983% due 08/12/2041		455,000		469,483
Nomura Asset Acceptance Corp.,
Series 2006-AF1, Class CB1
6.539% due 06/25/2036 (b)		304,943		311,440
Nomura Asset Acceptance Corp.,
Series 2006-AF2, Class 4A
6.7384% due 08/25/2036 (b)		675,400		685,109
Provident Funding Mortgage Loan Trust,
Series 2005-1, Class B1
4.3636% due 05/25/2035 (b)		317,694		309,381
Residential Accredit Loans, Inc.,
Series 2005-QA12, Class NB5
5.9897% due 12/25/2035 (b)		512,035		518,170
Residential Accredit Loans, Inc., Series 2006-QA1,
Class A31
6.2832% due 01/25/2036 (b)		20,091		20,327
Residential Asset Securitization Trust,
Series 2006-A7CB, Class 2A1
6.50% due 07/25/2036		724,439		729,327
Salomon Brothers Mortgage Securities VII,
Series 2000-C3, Class A2
6.592% due 12/18/2033		12,045		12,553
Salomon Brothers Mortgage Securities VII,
Series 2001-C1, Class A2
6.226% due 12/18/2035		7,796		7,836
Salomon Brothers Mortgage Securities VII,
Series 2001-C1, Class A3
6.428% due 12/18/2035		24,682		25,661
SBA CMBS Trust, Series 2005-1A, Class A
5.369% due 11/15/2035		200,000		199,736
SBA CMBS Trust, Series 2005-1A, Class B
5.565% due 11/15/2035		200,000		200,336
SBA CMBS Trust, Series 2005-1A, Class C
5.731% due 11/15/2035		397,000		398,104
SBA CMBS Trust, Series 2005-1A, Class D
6.219% due 11/15/2035		100,000		100,790
SBA CMBS Trust, Series 2005-1A, Class E
6.706% due 11/15/2035		110,000		111,868
Sequoia Mortgage Trust, Series 2005-3, Class A1
5.525% due 05/20/2035 (b)		13,032		13,036
Wachovia Bank Commercial Mortgage Trust,
Series 2006-C27, Class XC
0.061% IO due 07/15/2045 (b)		51,503,486		508,499
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C10, Class A3
4.39% due 02/15/2041		39,492		37,855
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C17, Class XC
0.0635% IO due 03/15/2042 (b)		998,401		9,141

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C19, Class A5
4.661% due 05/15/2044	$	66,742	$	64,252
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C19, Class AJ
4.793% due 05/15/2044		37,517		35,538
Wachovia Bank Commercial Mortgage Trust,
Series 2006-C24, Class XC
0.0476% IO due 03/15/2045 (b)		158,190,235		871,154
Washington Mutual Alternative Mortgage
Pass-Through Certificates, Series 2006-7, Class
A3
6.081% due 09/25/2036		1,350,000		1,344,938
Washington Mutual Alternative Mortgage
Pass-Through Certificates, Series 2005-6,
Class 1CB
6.50% due 08/25/2035		365,388		367,900
Washington Mutual, Inc., Series 2005-1, Class 6A1
6.50% due 03/25/2035		20,715		20,882
Washington Mutual, Inc., Series 2005-AR12,
Class 1A8
4.8398% due 10/25/2035 (b)		1,436,978		1,416,797
Wells Fargo Mortgage Backed Securities Trust,
Series 2004-7, Class 2A2
5.00% due 07/25/2019		351,225		342,335
Wells Fargo Mortgage Backed Securities Trust,
Series 2005-AR16, Class 2A1
4.9454% due 10/25/2035 (b)		3,637,682		3,617,094

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $84,484,596)			$	84,603,467


ASSET BACKED SECURITIES - 3.04%
Amresco Residential Securities Mortgage Loan
Trust, Series 1998-1, Class A6
6.51% due 08/25/2027		3,043		3,049
Argent Securities, Inc., Series 2004-W1, Class M3
6.7744% due 03/25/2034 (b)		31,593		31,941
California Infrastructure Development PG&E-1,
Series 1997-1, Class A7
6.42% due 09/25/2008		1,076		1,077
Capital Trust Re CDO, Ltd., Series 2005-1A, Class B
5.795% due 03/20/2050 (b)		400,000		400,422
Countrywide Asset-Backed Certificates,
Series 2004-10, Class AF3
3.842% due 10/25/2030 (b)		17,620		17,482
Countrywide Asset-Backed Certificates,
Series 2004-12, Class 2AV2
5.6044% due 09/25/2033 (b)		9,073		9,078
Credit-Based Asset Servicing and Securitization,
Series 2006-MH1, Class B1
6.25% due 09/25/2036		460,000		408,510
Credit-Based Asset Servicing and Securitization,
Series 2005-CB8, Class AF2
5.303% due 12/25/2035		1,000,000		993,438
Credit-Based Asset Servicing and Securitization,
Series 2006-CB2, Class AF2
5.501% due 12/25/2036		1,250,000		1,245,704

The accompanying notes are an integral part of the financial statements. 186

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
DB Master Finance LLC, Series 2006-1, Class-A2
5.779% due 06/20/2031	$	1,205,000	$	1,218,970
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031		125,000		127,249
Equity One ABS, Inc., Series 2004-2, Class AV2
5.5744% due 07/25/2034 (b)		1,874		1,877
GSAA Home Equity Trust, Series 2006-10,
Class AF3
5.9846% due 06/25/2036 (b)		1,000,000		1,009,375
Home Equity Asset Trust, Series 2006-3N, Class A
5.50% due 08/27/2036		924,829		918,502
Home Equity Mortgage Trust,
Series 2005-3, Class A1
5.5644% due 11/25/2035 (b)		32,358		32,375
LNR CDO Ltd, Series 2006-1A, Class BFL
5.8781% due 05/28/2043 (b)		700,000		700,000
Morgan Stanley ABS Capital I,
Series 2004-OP1, Class A2B
5.6144% due 11/25/2034 (b)		13,932		13,941
Newcastle CDO, Ltd., Series 2005-7A, Class 2FL
4.72% due 12/25/2050		570,000		570,228
N-Star Real Estate CDO, Ltd.
5.7044% due 06/22/2051 (b)		900,000		900,000
Ownit Mortgage Loan, Series 2006-1, Class AF2
5.29 due 12/25/2036		1,050,000		1,043,110
Ownit Mortgage Loan, Series 2006-2, Class A2B
5.6329 due 01/25/2037 (b)		1,000,000		1,000,313
Popular ABS Mortgage Pass-Through Trust,
Series 2005-4, Class AF3
4.982% due 09/25/2035 (b)		65,162		64,451
Popular ABS Mortgage Pass-Through Trust,
Series 2005-6, Class A2
5.35% due 01/25/2036 (b)		900,000		897,059
Renaissance Home Equity Loan Trust,
Series 2005-2, Class AF3
4.499% due 08/25/2035		210,000		206,514
Renaissance Home Equity Loan Trust,
Series 2005-2, Class AF4
4.934% due 08/25/2035		230,000		225,169
Renaissance Home Equity Loan Trust,
Series 2005-4, Class A2
5.399% due 02/25/2036		1,000,000		994,060
Residential Accredit Loans, Inc.,
Series 2004-QS16, Class 1A1
5.50% due 12/25/2034		27,019		26,769
Sail Net Interest Margin Notes, Series 2005-6A,
Class A
4.75% due 07/27/2035		94,404		94,048
Specialty Underwriting & Residential Finance,
Series 2003-BC4, Class A3B
4.788% due 11/25/2034		23,608		23,377
Specialty Underwriting & Residential Finance,
Series 2004-BC4, Class A2B
5.6344% due 10/25/2035 (b)		25,684		25,728
Structured Asset Investment Loan Trust,
Series 2004-8, Class A13
5.6244% due 09/25/2034 (b)		2,836		2,836

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Structured Asset Investment Loan Trust,
Series 2004-8, Class A7
5.6244% due 09/25/2034 (b)	$	8,095	$	8,098
Wells Fargo Home Equity Trust,
Series 2004-2, Class AI5
4.89% due 11/25/2028 (b)		49,000		47,819

TOTAL ASSET BACKED SECURITIES
(Cost $13,259,441)			$	13,262,569


SUPRANATIONAL OBLIGATIONS - 0.05%
Honduras - 0.00%
Central American Bank for Economic Integration
6.75% due 04/15/2013		12,000		12,497
Venezuela - 0.05%
Corporacion Andina de Fomento
5.20% due 05/21/2013		214,000		208,421
Corporacion Andina de Fomento, Series EXCH
6.875% due 03/15/2012		20,000		21,117

				229,538


TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $249,239)			$	242,035


SHORT TERM INVESTMENTS - 35.77%
Federal National Mortgage Association
Discount Notes
zero coupon due 09/13/2006 to
09/18/2006	$	71,000,000	$	70,872,311
State Street Global Advisers Funds (c)		1,904,792		1,904,792
State Street Navigator Securities Lending
Prime Portfolio (c)		83,363,396		83,363,396

TOTAL SHORT TERM INVESTMENTS
(Cost $155,843,223)			$	156,140,499


REPURCHASE AGREEMENTS - 1.57%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$6,881,755 on 9/1/2006,
collateralized by $7,210,000
Federal National Mortgage
Association, 4.25% due
08/15/2010 (valued at $7,020,738,
including interest) (c)	$	6,881,000	$	6,881,000

TOTAL REPURCHASE AGREEMENTS
(Cost $6,881,000)			$	6,881,000

Total Investments (Active Bond Fund)
(Cost $592,300,056) - 135.83%			$	592,970,383
Liabilities in Excess of Other Assets - (35.83)%				(156,415,340)

TOTAL NET ASSETS - 100.00%			$	436,555,043

The accompanying notes are an integral part of the financial statements. 187

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Core Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 88.47%
Aerospace - 3.22%
Boeing Company	56,400	$	4,224,360
Lockheed Martin Corp.	50,500		4,171,300
Raytheon Company	16,000		755,360

			9,151,020
Air Travel - 0.48%
Continental Airlines, Inc., Class B * (a)	54,500		1,367,405
Apparel & Textiles - 0.96%
Jones Apparel Group, Inc.	49,300		1,543,090
Kellwood Company (a)	21,200		581,092
The Gymboree Corp. *	18,300		613,965

			2,738,147
Automobiles - 1.03%
PACCAR, Inc. (a)	53,550		2,927,579
Banking - 5.31%
Bank of America Corp.	152,600		7,854,322
KeyCorp	23,600		868,244
National City Corp.	200		6,916
US Bancorp	46,900		1,504,083
Wells Fargo Company	139,200		4,837,200

			15,070,765
Biotechnology - 0.34%
Abraxis BioScience, Inc. * (a)	28,000		696,640
Digene Corp. *	6,700		279,055

			975,695
Broadcasting - 0.53%
Clear Channel Communications, Inc.	51,500		1,495,560
Business Services - 1.89%
Acxiom Corp.	17,600		427,504
Computer Sciences Corp. *	55,800		2,643,804
Robert Half International, Inc.	74,200		2,295,748

			5,367,056
Cable and Television - 1.32%
DIRECTV Group, Inc. *	199,500		3,748,605
Cellular Communications - 0.25%
Telephone & Data Systems, Inc.	17,100		725,211
Chemicals - 1.51%
Celanese Corp., Series A	84,600		1,564,254
Lyondell Chemical Company	105,200		2,733,096

			4,297,350
Computers & Business Equipment - 4.19%
Cisco Systems, Inc. *	74,400		1,636,056
Dell, Inc. *	83,500		1,882,925
Hewlett-Packard Company	115,800		4,233,648
Lexmark International, Inc. *	40,800		2,287,656
Plexus Corp. *	8,100		160,542
Western Digital Corp. *	92,200		1,687,260

			11,888,087
Cosmetics & Toiletries - 0.97%
Colgate-Palmolive Company	44,600		2,669,756

All Cap Core Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Cosmetics & Toiletries (continued)
Procter & Gamble Company	1,200	$	74,280

			2,744,036
Crude Petroleum & Natural Gas - 1.45%
Penn Virginia Corp.	2,800		198,772
Unit Corp. *	39,300		2,071,503
XTO Energy, Inc.	40,300		1,844,531

			4,114,806
Electrical Equipment - 0.36%
Wesco International, Inc. *	17,500		1,023,750
Electrical Utilities - 3.05%
Entergy Corp.	13,200		1,024,980
Exelon Corp.	71,500		4,360,070
FirstEnergy Corp.	57,300		3,269,538

			8,654,588
Electronics - 0.32%
Zoran Corp. *	51,800		923,076
Financial Services - 6.51%
Bear Stearns Companies, Inc.	7,600		990,660
Capital One Financial Corp.	31,700		2,317,270
Citigroup, Inc.	72,800		3,592,680
Goldman Sachs Group, Inc.	27,900		4,147,335
JPMorgan Chase & Company	141,000		6,438,060
Lehman Brothers Holdings, Inc.	15,700		1,001,817

			18,487,822
Food & Beverages - 4.98%
General Mills, Inc.	58,800		3,188,724
H.J. Heinz Company	3,800		158,992
Pepsi Bottling Group, Inc.	91,000		3,185,910
PepsiCo, Inc.	85,800		5,601,024
Starbucks Corp. *	64,600		2,003,246

			14,137,896
Furniture & Fixtures - 0.63%
Leggett & Platt, Inc.	77,200		1,779,460
Healthcare Products - 0.71%
Dade Behring Holdings, Inc.	5,500		222,695
Johnson & Johnson	2,200		142,252
Kyphon, Inc. * (a)	26,900		974,049
LCA-Vision, Inc. (a)	15,300		673,659

			2,012,655
Healthcare Services - 4.25%
Coventry Health Care, Inc. *	47,600		2,581,824
Humana, Inc. *	42,400		2,583,432
McKesson Corp.	60,500		3,073,400
Odyssey Healthcare, Inc. *	11,000		176,440
Wellpoint, Inc. *	47,100		3,646,011

			12,061,107
Holdings Companies/Conglomerates - 1.00%
General Electric Company	83,500		2,844,010

The accompanying notes are an integral part of the financial statements. 188

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Core Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Homebuilders - 0.16%
Meritage Homes Corp. * (a)	10,900	$	446,355
Hotels & Restaurants - 0.83%
Brinker International, Inc.	26,200		1,007,914
Darden Restaurants, Inc.	14,700		520,380
Yum! Brands, Inc.	17,100		835,848

			2,364,142
Household Appliances - 0.45%
The Toro Company	31,800		1,272,318
Industrial Machinery - 1.06%
Caterpillar, Inc.	45,200		2,999,020
Insurance - 2.77%
AFLAC, Inc.	10,500		473,235
American Financial Group, Inc.	20,300		948,416
CNA Financial Corp. *	52,800		1,830,576
HCC Insurance Holdings, Inc.	16,000		519,840
MetLife, Inc.	6,000		330,180
Philadelphia Consolidated Holding Corp. *	30,500		1,102,880
W.R. Berkley Corp.	76,100		2,663,500

			7,868,627
International Oil - 2.31%
Anadarko Petroleum Corp.	64,000		3,002,240
ChevronTexaco Corp.	46,600		3,001,040
Hess Corp.	12,500		572,250

			6,575,530
Internet Retail - 0.31%
eBay, Inc. *	31,600		880,376
Internet Service Provider - 0.60%
Google, Inc., Class A *	2,800		1,059,884
Yahoo!, Inc. *	22,500		648,450

			1,708,334
Internet Software - 0.31%
Symantec Corp. *	47,300		881,672
Leisure Time - 1.36%
Walt Disney Company	130,700		3,875,255
Manufacturing - 0.31%
Danaher Corp.	13,400		888,286
Medical-Hospitals - 0.06%
Manor Care, Inc.	3,200		167,040
Metal & Metal Products - 1.12%
Reliance Steel & Aluminum Company	62,900		2,061,233
Southern Copper Corp. (a)	12,100		1,117,072

			3,178,305
Mining - 0.22%
Compass Minerals International, Inc. (a)	11,900		318,087
Stillwater Mining Company * (a)	31,600		297,988

			616,075
Office Furnishings & Supplies - 0.90%
Office Depot, Inc. *	69,700		2,567,748

All Cap Core Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Petroleum Services - 4.53%
Exxon Mobil Corp.	153,000	$	10,353,510
Valero Energy Corp.	44,000		2,525,600

			12,879,110
Pharmaceuticals - 8.16%
Abbott Laboratories	92,300		4,495,010
Alkermes, Inc. *	58,700		959,745
AmerisourceBergen Corp.	65,100		2,874,816
Endo Pharmaceutical Holdings, Inc. *	35,600		1,175,868
Hospira, Inc. *	57,600		2,109,888
Merck & Company, Inc.	45,600		1,849,080
Mylan Laboratories, Inc.	114,000		2,316,480
Pfizer, Inc.	236,400		6,515,184
Valeant Pharmaceuticals International (a)	44,200		868,972

			23,165,043
Publishing - 0.65%
McGraw-Hill Companies, Inc.	33,000		1,845,030
Real Estate - 1.77%
Equity Office Properties Trust, REIT	18,700		693,583
Equity Residential, REIT	15,200		758,024
Health Care REIT, Inc.	11,200		447,328
Healthcare Realty Trust, Inc., REIT (a)	4,000		144,640
Hospitality Properties Trust, REIT	11,800		546,576
Liberty Property Trust, REIT	10,000		478,700
ProLogis, REIT	4,200		237,132
Regency Centers Corp., REIT	8,400		565,068
Simon Property Group, Inc., REIT	9,400		797,026
Thornburg Mortgage, Inc., REIT (a)	15,200		349,144

			5,017,221
Retail Grocery - 0.19%
The Kroger Company	22,700		540,487
Retail Trade - 3.72%
American Eagle Outfitters, Inc.	20,200		780,326
Childrens Place Retail Stores, Inc. *	13,500		782,595
Costco Wholesale Corp.	70,900		3,317,411
J.C. Penney Company, Inc. (a)	43,300		2,729,632
Kohl's Corp. *	47,200		2,950,472

			10,560,436
Sanitary Services - 1.06%
Waste Management, Inc.	87,600		3,002,928
Semiconductors - 3.48%
Advanced Micro Devices, Inc. *	69,900		1,746,801
Freescale Semiconductor, Inc., Class B *	65,000		2,009,150
Lam Research Corp. *	45,100		1,929,829
Micron Technology, Inc. *	121,700		2,102,976
National Semiconductor Corp.	85,900		2,086,511

			9,875,267
Software - 1.84%
BMC Software, Inc. *	100,800		2,683,296
Microsoft Corp.	31,200		801,528

The accompanying notes are an integral part of the financial statements. 189

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Core Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Software (continued)
MicroStrategy, Inc., Class A * (a)		19,000	$	1,732,800

				5,217,624

Steel - 0.96%
Nucor Corp.		46,300		2,262,681
Steel Dynamics, Inc.		8,600		453,994

				2,716,675

Telecommunications Equipment &
Services - 1.00%
Alaska Communications Systems Group, Inc. (a)		20,500		282,695
Citizens Communications Company		39,400		543,326
Corning, Inc. *		56,300		1,252,112
InterDigital Communication Corp. * (a)		23,400		777,582

				2,855,715

Telephone - 1.95%
U.S. Cellular Corp. * (a)		9,200		551,540
Verizon Communications, Inc.		141,600		4,981,488

				5,533,028

Tires & Rubber - 0.14%
Goodyear Tire & Rubber Company *		30,400		413,440
Trucking & Freight - 0.99%
Fedex Corp.		8,300		838,549
Ryder Systems, Inc.		40,200		1,986,684

				2,825,233


TOTAL COMMON STOCKS (Cost $246,614,172)			$	251,272,006


SHORT TERM INVESTMENTS - 5.01%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	12,324,387	$	12,324,387
United States Treasury Bills
zero coupon due 10/19/2006		1,900,000		1,887,409

TOTAL SHORT TERM INVESTMENTS
(Cost $14,211,796)			$	14,211,796


REPURCHASE AGREEMENTS - 10.78%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$30,630,360 on 9/1/2006,
collateralized by $25,055,000
Federal National Mortgage
Association, 5.55% due
07/10/2028 (valued at
$23,366,969, including interest)
and $8,480,000 Federal National
Mortgage Association, 5.57% due
07/14/2028 (valued at $7,874,494,
including interest) (c)	$	30,627,000	$	30,627,000

TOTAL REPURCHASE AGREEMENTS
(Cost $30,627,000)			$	30,627,000

Total Investments (All Cap Core Fund)
(Cost $291,452,968) - 104.26%		$	296,110,802
Liabilities in Excess of Other Assets - (4.26)%			(12,087,361)

TOTAL NET ASSETS - 100.00%		$	284,023,441



All Cap Growth Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 94.36%
Aerospace - 4.12%
Boeing Company	30,431	$	2,279,282
General Dynamics Corp.	27,715		1,872,148
Rockwell Collins, Inc.	14,913		781,889
United Technologies Corp.	23,230		1,456,753

			6,390,072
Agriculture - 1.18%
Archer-Daniels-Midland Company	16,620		684,246
Monsanto Company	24,080		1,142,355

			1,826,601
Apparel & Textiles - 0.50%
Carter's, Inc. * (a)	33,544		774,866
Banking - 0.61%
Kookmin Bank, ADR	11,692		942,141
Biotechnology - 0.50%
Amgen, Inc. *	11,414		775,353
Broadcasting - 1.19%
News Corp.	97,000		1,845,910
Computers & Business Equipment - 7.66%
Apple Computer, Inc. *	45,099		3,059,967
Cisco Systems, Inc. *	203,434		4,473,514
Hewlett-Packard Company	62,907		2,299,880
Seagate Technology * (a)	73,276		1,630,391
Western Digital Corp. *	22,221		406,644

			11,870,396
Construction & Mining Equipment - 0.96%
National Oilwell, Inc. *	22,722		1,483,747
Cosmetics & Toiletries - 0.93%
Colgate-Palmolive Company	24,205		1,448,911
Crude Petroleum & Natural Gas - 1.39%
Occidental Petroleum Corp.	42,370		2,160,446
Drugs & Health Care - 1.08%
Wyeth	34,384		1,674,501
Electrical Equipment - 2.63%
Cooper Industries, Ltd., Class A	14,709		1,204,373
Emerson Electric Company	19,169		1,574,733
Fanuc, Ltd.	7,750		614,823
Wesco International, Inc. *	11,610		679,185

			4,073,114
Electronics - 1.65%
Amphenol Corp., Class A	22,111		1,270,719
KDDI Corp.	194		1,281,156

			2,551,875

The accompanying notes are an integral part of the financial statements. 190

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Financial Services - 7.97%
Charles Schwab Corp.	98,926	$	1,613,483
Goldman Sachs Group, Inc.	18,531		2,754,633
Janus Capital Group, Inc.	71,701		1,274,844
JPMorgan Chase & Company	65,139		2,974,247
Merrill Lynch & Company, Inc.	30,508		2,243,253
Morgan Stanley	22,587		1,485,999

			12,346,459
Food & Beverages - 1.88%
Burger King Holdings, Inc. * (a)	54,942		798,857
Campbell Soup Company	6,888		258,782
PepsiCo, Inc.	28,447		1,857,020

			2,914,659
Healthcare Products - 2.75%
Becton, Dickinson & Company	26,074		1,817,358
Johnson & Johnson	13,966		903,041
Varian Medical Systems, Inc. *	28,813		1,535,733

			4,256,132
Healthcare Services - 4.39%
Cardinal Health, Inc.	28,498		1,921,335
Caremark Rx, Inc.	23,035		1,334,648
Health Net, Inc. *	33,754		1,411,255
IMS Health, Inc.	19,349		528,034
Omnicare, Inc. (a)	14,690		665,604
Quest Diagnostics, Inc.	14,733		947,037

			6,807,913
Holdings Companies/Conglomerates - 0.87%
Textron, Inc.	16,096		1,349,811
Hotels & Restaurants - 1.25%
Darden Restaurants, Inc.	31,335		1,109,259
Ruby Tuesday, Inc. (a)	32,068		827,996

			1,937,255
Industrial Machinery - 1.72%
Joy Global, Inc.	23,485		1,022,537
Komatsu, Ltd.	52,030		950,998
Terex Corp. *	15,736		691,282

			2,664,817
Industrials - 1.16%
ABB, Ltd.	59,167		784,130
Mitsui O.S.K. Lines, Ltd.	133,440		1,017,671

			1,801,801
Insurance - 2.33%
Assurant, Inc.	34,713		1,785,984
Chubb Corp.	15,662		785,606
HCC Insurance Holdings, Inc.	31,838		1,034,416

			3,606,006
Internet Service Provider - 1.13%
Google, Inc., Class A *	4,635		1,754,486
Leisure Time - 1.02%
Electronic Arts, Inc. *	31,102		1,585,269

All Cap Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Medical-Hospitals - 0.99%
Manor Care, Inc. (a)	21,962	$	1,146,417
VCA Antech, Inc. *	11,120		393,870

			1,540,287
Metal & Metal Products - 1.25%
Companhia Vale Do Rio Doce, ADR	54,668		1,172,082
Precision Castparts Corp.	13,175		769,947

			1,942,029
Mining - 2.19%
BHP Billiton, Ltd.	65,740		1,389,239
Phelps Dodge Corp.	6,548		586,046
Rio Tinto PLC	28,019		1,416,159

			3,391,444
Office Furnishings & Supplies - 1.40%
Office Depot, Inc. *	58,836		2,167,518
Petroleum Services - 4.31%
Baker Hughes, Inc.	23,708		1,687,535
ENSCO International, Inc.	24,653		1,101,743
GlobalSantaFe Corp.	18,481		909,635
McDermott International, Inc. *	31,764		1,531,025
Valero Energy Corp.	25,355		1,455,377

			6,685,315
Pharmaceuticals - 7.73%
Abbott Laboratories	5,299		258,061
Allergan, Inc. (a)	16,825		1,927,472
AstraZeneca PLC, SADR	30,959		2,016,669
Barr Pharmaceuticals, Inc. *	14,656		828,064
Gilead Sciences, Inc. *	33,191		2,104,309
Novartis AG, ADR	30,523		1,743,474
Roche Holdings AG NPV	16,822		3,093,874

			11,971,923
Railroads & Equipment - 1.35%
Burlington Northern Santa Fe Corp.	16,854		1,128,375
CSX Corp.	31,676		957,249

			2,085,624
Retail Trade - 8.78%
Aeropostale, Inc. *	30,557		776,148
AnnTaylor Stores Corp. *	19,309		768,498
Best Buy Company, Inc.	40,878		1,921,266
Costco Wholesale Corp.	33,036		1,545,754
DSW, Inc., Class A * (a)	20,260		567,077
Family Dollar Stores, Inc.	60,491		1,546,755
Federated Department Stores, Inc.	29,871		1,134,501
J.C. Penney Company, Inc.	32,772		2,065,947
Limited Brands, Inc.	43,090		1,108,706
Nordstrom, Inc.	24,336		908,950
PETsMART, Inc.	50,192		1,259,819

			13,603,421
Sanitary Services - 0.81%
Waste Management, Inc.	36,427		1,248,718

The accompanying notes are an integral part of the financial statements. 191

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Growth Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Semiconductors - 3.74%
Analog Devices, Inc.		69,835	$	2,139,744
Freescale Semiconductor, Inc., Class B *		66,383		2,051,899
Microchip Technology, Inc.		46,982		1,604,905

				5,796,548
Software - 4.64%
BEA Systems, Inc. *		130,279		1,788,731
Citrix Systems, Inc. *		43,819		1,344,367
Microsoft Corp.		91,968		2,362,658
Red Hat, Inc. * (a)		51,719		1,201,949
VeriFone Holdings, Inc. * (a)		21,391		495,202

				7,192,907
Telecommunications Equipment &
Services - 5.28%
Amdocs, Ltd. *		96,367		3,657,127
Nokia Oyj, SADR		75,476		1,575,939
QUALCOMM, Inc.		61,348		2,310,979
Tellabs, Inc. *		62,814		640,075

				8,184,120
Telephone - 0.52%
Harris Corp.		18,232		800,749
Trucking & Freight - 0.50%
Oshkosh Truck Corp.		14,856		768,055

TOTAL COMMON STOCKS (Cost $136,719,023)			$	146,221,199


SHORT TERM INVESTMENTS - 4.58%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	7,097,453	$	7,097,453

TOTAL SHORT TERM INVESTMENTS
(Cost $7,097,453)			$	7,097,453


REPURCHASE AGREEMENTS - 5.13%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
4.95% to be repurchased at
$7,954,094 on 9/1/2006,
collateralized by $8,225,000
Federal Home Loan Bank, 4.125%
due 02/15/2008 (valued at
$8,116,701, including interest) (c)	$	7,953,000	$	7,953,000

TOTAL REPURCHASE AGREEMENTS
(Cost $7,953,000)			$	7,953,000

Total Investments (All Cap Growth Fund)
(Cost $151,769,476) - 104.07%			$	161,271,652
Liabilities in Excess of Other Assets - (4.07)%				(6,300,765)

TOTAL NET ASSETS - 100.00%			$	154,970,887

All Cap Value Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 94.19%
Aerospace - 1.30%
Curtiss Wright Corp.	3,500	$	108,815
General Dynamics Corp.	30,100		2,033,255
Moog, Inc., Class A *	14,187		463,206
Woodward Governor Company	6,333		213,232

			2,818,508
Apparel & Textiles - 0.97%
VF Corp.	29,881		2,088,383
Banking - 5.83%
Bank of America Corp.	34,057		1,752,914
Bank of New York Company, Inc.	38,009		1,282,804
Cullen Frost Bankers, Inc.	66,635		3,928,800
Marshall & Ilsley Corp.	61,264		2,856,740
Popular, Inc.	500		9,525
SunTrust Banks, Inc.	20,600		1,573,840
Webster Financial Corp.	25,335		1,196,825

			12,601,448
Business Services - 3.25%
Automatic Data Processing, Inc.	47,700		2,251,440
Cadence Design Systems, Inc. *	180,430		2,964,465
R.R. Donnelley & Sons Company	55,915		1,812,764

			7,028,669
Cable and Television - 1.79%
Comcast Corp.-Special Class A *	110,537		3,858,847
Chemicals - 1.91%
Eastman Chemical Company	16,370		858,607
Praxair, Inc.	57,018		3,273,403

			4,132,010
Commercial Services - 0.63%
Shaw Group, Inc. *	53,979		1,358,112
Computers & Business Equipment - 1.22%
Henry, Jack & Associates, Inc.	34,700		664,852
Sun Microsystems, Inc. *	396,500		1,978,535

			2,643,387
Containers & Glass - 1.17%
Ball Corp.	34,431		1,388,946
Sonoco Products Company	33,900		1,134,972

			2,523,918
Cosmetics & Toiletries - 1.33%
Procter & Gamble Company	46,294		2,865,599
Domestic Oil - 0.09%
Range Resources Corp.	7,000		195,860
Drugs & Health Care - 1.55%
Wyeth	68,691		3,345,252
Electrical Equipment - 4.73%
AMETEK, Inc.	4,700		201,536
Anixter International, Inc. * (a)	39,189		2,135,408
Cooper Industries, Ltd., Class A	32,100		2,628,348
Emerson Electric Company	34,599		2,842,308
Hubbell, Inc., Class B	37,062		1,723,383

The accompanying notes are an integral part of the financial statements. 192

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electrical Equipment (continued)
Symbol Technologies, Inc.	56,900	$	683,369

			10,214,352
Electrical Utilities - 3.42%
Ameren Corp. (a)	18,340		982,107
Avista Corp. (a)	11,100		269,064
CMS Energy Corp. * (a)	50,960		746,054
FPL Group, Inc.	31,500		1,400,175
PNM Resources, Inc.	29,700		851,499
The Southern Company (a)	91,700		3,142,559

			7,391,458
Electronics - 3.42%
AVX Corp. (a)	132,174		2,195,410
Harman International Industries, Inc.	6,900		559,728
Rogers Corp. *	8,476		491,777
Vishay Intertechnology, Inc. *	102,478		1,435,717
Zebra Technologies Corp., Class A *	80,000		2,707,200

			7,389,832
Financial Services - 0.62%
Citigroup, Inc.	27,278		1,346,169
Food & Beverages - 4.96%
Campbell Soup Company	69,514		2,611,641
Diageo PLC, SADR	40,500		2,895,750
Kraft Foods, Inc., Class A	6,600		223,806
PepsiCo, Inc.	76,479		4,992,550

			10,723,747
Furniture & Fixtures - 0.72%
Ethan Allen Interiors, Inc. (a)	45,791		1,545,446
Gas & Pipeline Utilities - 2.46%
AGL Resources, Inc.	17,100		622,269
El Paso Corp. (a)	153,800		2,233,176
Nicor, Inc. (a)	13,758		600,674
NiSource, Inc.	33,481		708,793
UGI Corp.	46,100		1,143,280

			5,308,192
Gold - 1.81%
Barrick Gold Corp.	116,697		3,907,016
Healthcare Products - 0.55%
Zimmer Holdings, Inc. *	17,600		1,196,800
Holdings Companies/Conglomerates - 4.73%
Berkshire Hathaway, Inc., Class B *	845		2,706,957
General Electric Company	220,979		7,526,545

			10,233,502
Hotels & Restaurants - 0.81%
Brinker International, Inc.	25,737		990,102
OSI Restaurant Partners, Inc.	17,400		538,878
Ruby Tuesday, Inc. (a)	8,900		229,798

			1,758,778
Industrial Machinery - 4.16%
Deere & Company	5,745		448,685

All Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Industrial Machinery (continued)
Dover Corp.	51,900	$	2,523,378
Grant Prideco, Inc. *	30,100		1,250,053
IDEX Corp.	15,878		666,717
Kennametal, Inc.	10,500		553,770
Parker-Hannifin Corp.	40,404		2,991,916
W.W. Grainger, Inc.	8,240		550,432

			8,984,951
Insurance - 2.92%
AFLAC, Inc.	41,662		1,877,707
Allstate Corp.	16,100		932,834
American International Group, Inc.	4,900		312,718
Everest Re Group, Ltd.	1,400		131,572
Genworth Financial, Inc.	67,796		2,334,216
Markel Corp. * (a)	2,000		726,660

			6,315,707
International Oil - 2.18%
ChevronTexaco Corp.	42,000		2,704,800
EnCana Corp.	38,100		2,009,394

			4,714,194
Internet Software - 1.08%
McAfee, Inc. *	102,399		2,330,601
Liquor - 1.03%
Anheuser-Busch Companies, Inc.	44,900		2,217,162
Manufacturing - 3.31%
Carlisle Companies, Inc.	35,177		3,007,634
Eaton Corp.	17,990		1,196,335
Hexcel Corp. * (a)	23,900		358,978
Trinity Industries, Inc. (a)	78,015		2,602,580

			7,165,527
Metal & Metal Products - 1.74%
Crown Holdings, Inc. *	94,629		1,740,227
Quanex Corp. (a)	56,185		1,928,831
Timken Company	2,613		83,721

			3,752,779
Mining - 2.61%
Newmont Mining Corp.	109,971		5,636,014
Petroleum Services - 6.53%
BP PLC, SADR	10,000		680,500
Exxon Mobil Corp.	148,091		10,021,318
Halliburton Company	54,458		1,776,420
Schlumberger, Ltd.	14,836		909,447
Superior Energy Services, Inc. *	22,600		721,618

			14,109,303
Pharmaceuticals - 6.96%
Abbott Laboratories	63,100		3,072,970
GlaxoSmithKline PLC, ADR	44,052		2,501,273
Mylan Laboratories, Inc.	139,798		2,840,695
Novartis AG, ADR	77,570		4,430,798
Pfizer, Inc.	12,944		356,737

The accompanying notes are an integral part of the financial statements. 193

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

All Cap Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Pharmaceuticals (continued)
Schering-Plough Corp.		39,704	$	831,799
Teva Pharmaceutical Industries, Ltd., SADR		29,200		1,014,992

				15,049,264
Railroads & Equipment - 0.83%
GATX Corp. (a)		36,900		1,369,359
Union Pacific Corp.		5,324		427,783

				1,797,142
Real Estate - 0.71%
Host Hotels & Resorts, Inc., REIT		68,502		1,544,035
Retail Grocery - 1.79%
The Kroger Company		162,334		3,865,172
Retail Trade - 2.42%
Federated Department Stores, Inc.		89,914		3,414,934
Foot Locker, Inc.		53,659		1,293,182
Wal-Mart Stores, Inc.		11,717		523,984

				5,232,100
Sanitary Services - 0.81%
Waste Management, Inc.		51,300		1,758,564
Steel - 0.05%
Steel Dynamics, Inc.		2,190		115,610
Telecommunications Equipment &
Services - 0.92%
Avaya, Inc. *		27,353		285,839
Tellabs, Inc. *		167,402		1,705,826

				1,991,665
Telephone - 2.74%
AT&T, Inc.		75,300		2,344,089
BellSouth Corp.		12,400		504,928
Qwest Communications International, Inc. *		67,300		592,913
Verizon Communications, Inc.		70,806		2,490,955

				5,932,885
Travel Services - 0.52%
Sabre Holdings Corp.		51,455		1,127,894
Trucking & Freight - 1.61%
Heartland Express, Inc. (a)		83,422		1,341,426
Werner Enterprises, Inc. (a)		115,583		2,141,753

				3,483,179

TOTAL COMMON STOCKS (Cost $186,873,741)			$	203,599,033


SHORT TERM INVESTMENTS - 7.90%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	17,067,785	$	17,067,785

TOTAL SHORT TERM INVESTMENTS
(Cost $17,067,785)			$	17,067,785

All Cap Value Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 6.14%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$13,276,457 on 09/01/2006,
collateralized by $13,360,000
Federal National Mortgage
Association, 6.125% due
08/17/2026 (valued at
$13,543,700, including interest) (c)	$	13,275,000	$	13,275,000

TOTAL REPURCHASE AGREEMENTS
(Cost $13,275,000)			$	13,275,000

Total Investments (All Cap Value Fund)
(Cost $217,216,526) - 108.23%			$	233,941,818
Liabilities in Excess of Other Assets - (8.23)%				(17,780,017)

TOTAL NET ASSETS - 100.00%			$	216,161,801



Blue Chip Growth Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 98.94%
Advertising - 0.29%
Monster Worldwide, Inc. *		91,500	$	3,727,710
Aerospace - 1.51%
General Dynamics Corp.		157,026		10,607,106
Rockwell Collins, Inc.		80,801		4,236,397
United Technologies Corp.		70,200		4,402,242

				19,245,745
Agriculture - 0.89%
Monsanto Company		237,496		11,266,810
Banking - 1.69%
Northern Trust Corp.		178,111		9,972,435
Wells Fargo Company		331,508		11,519,903

				21,492,338
Biotechnology - 2.86%
Amgen, Inc. *		280,455		19,051,308
Genentech, Inc. *		183,678		15,157,109
Genzyme Corp. *		32,300		2,139,229

				36,347,646
Broadcasting - 0.27%
Grupo Televisa SA, SADR		182,600		3,476,704
Business Services - 2.05%
Automatic Data Processing, Inc.		329,719		15,562,737
First Data Corp.		205,636		8,836,179
Paychex, Inc. (a)		47,657		1,711,363

				26,110,279
Cable and Television - 1.55%
E.W. Scripps Company, Class A		20,950		952,597
Rogers Communications, Inc.		107,716		5,553,837
Time Warner, Inc.		349,586		5,810,119

The accompanying notes are an integral part of the financial statements. 194

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Blue Chip Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Cable and Television (continued)
Viacom, Inc. *	203,781	$	7,397,250

			19,713,803
Cellular Communications - 2.02%
America Movil S.A. de C.V., Series L	280,949		10,482,207
American Tower Corp., Class A *	425,062		15,242,723

			25,724,930
Coal - 0.33%
CONSOL Energy, Inc. (a)	114,600		4,179,462
Computers & Business Equipment - 3.37%
Apple Computer, Inc. *	172,700		11,717,695
Cisco Systems, Inc. *	983,282		21,622,371
Dell, Inc. *	141,127		3,182,414
EMC Corp. *	545,648		6,356,799

			42,879,279
Cosmetics & Toiletries - 1.54%
Procter & Gamble Company	316,968		19,620,319
Crude Petroleum & Natural Gas - 0.08%
EOG Resources, Inc.	16,000		1,037,120
Domestic Oil - 0.42%
Murphy Oil Corp. (a)	109,442		5,352,808
Drugs & Health Care - 1.38%
Novartis AG	160,000		9,110,805
Wyeth	173,546		8,451,690

			17,562,495
Electronics - 1.38%
Garmin, Ltd. (a)	181,900		8,505,644
Harman International Industries, Inc.	111,740		9,064,349

			17,569,993
Financial Services - 14.69%
Ameriprise Financial, Inc. (a)	14,589		667,155
Charles Schwab Corp.	646,114		10,538,119
Chicago Merchantile Exchange Holdings, Inc.	7,000		3,080,000
Citigroup, Inc.	480,379		23,706,704
Countrywide Financial Corp.	115,000		3,887,000
ETRADE Financial Corp.	450,771		10,633,688
Franklin Resources, Inc.	175,335		17,254,717
Goldman Sachs Group, Inc.	97,424		14,482,078
Legg Mason, Inc.	138,180		12,610,307
Mellon Financial Corp.	85,239		3,173,448
Merrill Lynch & Company, Inc.	181,210		13,324,371
Morgan Stanley	141,800		9,329,022
SLM Corp.	308,008		14,947,628
State Street Corp. (c)	385,665		23,834,097
TD Ameritrade Holding Corp. *	486,026		8,515,175
UBS AG *	301,440		17,018,154

			187,001,663
Food & Beverages - 1.59%
PepsiCo, Inc.	234,166		15,286,356

Blue Chip Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Food & Beverages (continued)
Sysco Corp.	159,105	$	4,994,306

			20,280,662
Healthcare Products - 3.35%
Alcon, Inc.	21,200		2,497,148
Johnson & Johnson	131,501		8,502,855
Medtronic, Inc.	308,564		14,471,651
St. Jude Medical, Inc. *	210,364		7,659,353
Stryker Corp.	199,121		9,563,782

			42,694,789
Healthcare Services - 7.57%
Cardinal Health, Inc.	68,605		4,625,349
Caremark Rx, Inc.	344,997		19,989,126
DaVita, Inc. *	23,700		1,383,132
Humana, Inc. *	161,300		9,828,009
Medco Health Solutions, Inc. *	96,200		6,096,194
Quest Diagnostics, Inc.	108,978		7,005,106
UnitedHealth Group, Inc.	615,641		31,982,550
Wellpoint, Inc. *	199,128		15,414,499

			96,323,965
Holdings Companies/Conglomerates - 3.85%
General Electric Company	1,439,999		49,046,367
Hotels & Restaurants - 1.52%
Marriott International, Inc., Class A	194,912		7,340,386
Wynn Resorts, Ltd. * (a)	155,873		12,066,129

			19,406,515
Household Products - 0.23%
Fortune Brands, Inc.	40,162		2,915,761
Industrial Machinery - 0.11%
Deere & Company	18,513		1,445,865
Insurance - 3.53%
Aetna, Inc.	172,952		6,445,921
AFLAC, Inc.	2,389		107,672
American International Group, Inc.	329,153		21,006,544
Hartford Financial Services Group, Inc.	112,716		9,677,796
Prudential Financial, Inc.	105,200		7,722,732

			44,960,665
Internet Retail - 0.93%
Amazon.com, Inc. * (a)	242,211		7,467,365
eBay, Inc. *	156,065		4,347,971

			11,815,336
Internet Service Provider - 3.05%
Google, Inc., Class A *	60,734		22,989,641
Yahoo!, Inc. *	550,468		15,864,488

			38,854,129
Internet Software - 0.52%
Juniper Networks, Inc. *	452,919		6,644,322
Leisure Time - 1.25%
Harrah's Entertainment, Inc.	65,448		4,081,337

The accompanying notes are an integral part of the financial statements. 195

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Blue Chip Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Leisure Time (continued)
International Game Technology, Inc.	304,598	$	11,781,851

			15,863,188
Manufacturing - 3.61%
Danaher Corp.	468,437		31,052,689
Honeywell International, Inc.	153,595		5,947,199
Illinois Tool Works, Inc.	203,326		8,926,011

			45,925,899
Mining - 0.34%
BHP Billiton, Ltd.	207,400		4,382,845
Petroleum Services - 6.40%
Baker Hughes, Inc.	196,641		13,996,906
Exxon Mobil Corp.	237,962		16,102,889
Schlumberger, Ltd.	420,708		25,789,400
Smith International, Inc.	443,428		18,610,673
Total SA, ADR	102,392		6,904,293

			81,404,161
Pharmaceuticals - 4.13%
Allergan, Inc.	50,000		5,728,000
Celgene Corp. *	109,300		4,447,417
Gilead Sciences, Inc. *	241,219		15,293,284
GlaxoSmithKline PLC, ADR	14,700		834,666
Pfizer, Inc.	343,696		9,472,262
Roche Holdings AG NPV	50,000		9,195,915
Sepracor, Inc. * (a)	160,488		7,544,541

			52,516,085
Publishing - 0.06%
McGraw-Hill Companies, Inc.	13,748		768,651
Railroads & Equipment - 0.28%
Union Pacific Corp.	44,006		3,535,882
Retail Trade - 5.95%
Best Buy Company, Inc.	74,810		3,516,070
CVS Corp.	238,398		7,998,253
Home Depot, Inc.	342,252		11,735,821
Kohl's Corp. *	338,070		21,132,756
Target Corp.	269,978		13,064,235
Wal-Mart Stores, Inc.	409,336		18,305,506

			75,752,641
Semiconductors - 5.84%
Analog Devices, Inc. (a)	259,457		7,949,763
Applied Materials, Inc.	368,300		6,216,904
Intel Corp.	277,908		5,430,322
Linear Technology Corp. (a)	266,410		9,060,604
Marvell Technology Group, Ltd. *	586,990		10,278,195
Maxim Integrated Products, Inc.	486,628		14,160,875
Texas Instruments, Inc.	308,482		10,053,428
Xilinx, Inc.	486,675		11,130,257

			74,280,348
Software - 4.39%
Adobe Systems, Inc. *	234,325		7,601,503

Blue Chip Growth Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Software (continued)
Intuit, Inc. *		144,678	$	4,372,169
Microsoft Corp.		1,213,060		31,163,511
Oracle Corp. *		813,438		12,730,305

				55,867,488
Telecommunications Equipment &
Services - 2.66%
Corning, Inc. *		302,685		6,731,714
Nokia Oyj, SADR		628,272		13,118,319
QUALCOMM, Inc.		42,623		1,605,609
Telefonaktiebolaget LM Ericsson, SADR (a)		151,600		5,063,440
Telus Corp., Non Voting Shares		154,882		7,363,090

				33,882,172
Travel Services - 1.46%
American Express Company		352,948		18,543,888

TOTAL COMMON STOCKS (Cost $1,188,453,190)			$	1,259,420,728


SHORT TERM INVESTMENTS - 4.47%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	48,982,997	$	48,982,997
T. Rowe Price Reserve Investment Fund (c)		7,854,809		7,854,809

TOTAL SHORT TERM INVESTMENTS
(Cost $56,837,806)			$	56,837,806


REPURCHASE AGREEMENTS - 0.16%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$2,041,224 on 9/1/2006,
collateralized by $1,720,000 U.S.
Treasury Bond, 6.50% due
11/26/2015 (valued at $2,083,350,
including interest) (c)	$	2,041,000	$	2,041,000

TOTAL REPURCHASE AGREEMENTS
(Cost $2,041,000)			$	2,041,000

Total Investments (Blue Chip Growth Fund)
(Cost $1,247,331,996) - 103.57%			$	1,318,299,534
Liabilities in Excess of Other Assets - (3.57)%				(45,448,746)

TOTAL NET ASSETS - 100.00%			$	1,272,850,788



Capital Appreciation Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 98.24%
Aerospace - 3.77%
Boeing Company		110,400	$	8,268,960
United Technologies Corp.		144,500		9,061,595

				17,330,555
Apparel & Textiles - 3.11%
Coach, Inc. * (a)		251,756		7,600,514

The accompanying notes are an integral part of the financial statements. 196

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Capital Appreciation Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
Apparel & Textiles (continued)
NIKE, Inc., Class B	82,946 $	6,698,719

		14,299,233
Biotechnology - 3.77%
Amgen, Inc. *	98,425	6,686,010
Genentech, Inc. *	129,131	10,655,890

		17,341,900
Broadcasting - 1.18%
News Corp.	285,600	5,434,968
Cellular Communications - 3.50%
Motorola, Inc.	436,900	10,214,722
NII Holdings, Inc. * (a)	110,600	5,900,510

		16,115,232
Computers & Business Equipment - 4.62%
Apple Computer, Inc. *	152,156	10,323,784
Cisco Systems, Inc. *	497,630	10,942,884

		21,266,668
Cosmetics & Toiletries - 2.13%
Procter & Gamble Company	158,484	9,810,160
Crude Petroleum & Natural Gas - 1.45%
Occidental Petroleum Corp.	131,200	6,689,888
Drugs & Health Care - 1.07%
Wyeth	101,400	4,938,180
Electronics - 1.49%
Agilent Technologies, Inc. *	213,159	6,855,193
Financial Services - 8.87%
Charles Schwab Corp.	441,831	7,206,264
Goldman Sachs Group, Inc.	39,710	5,902,892
KKR Private Equity Investors, LP *	161,600	3,692,560
Merrill Lynch & Company, Inc.	89,982	6,616,376
NYSE Group, Inc. * (a)	98,300	5,829,190
UBS AG	204,300	11,598,111

		40,845,393
Food & Beverages - 3.76%
PepsiCo, Inc.	204,435	13,345,517
Starbucks Corp. *	127,200	3,944,472

		17,289,989
Healthcare Products - 3.74%
Alcon, Inc.	92,019	10,838,918
St. Jude Medical, Inc. *	175,474	6,389,008

		17,227,926
Healthcare Services - 4.81%
Caremark Rx, Inc.	124,989	7,241,863
UnitedHealth Group, Inc.	91,300	4,743,035
Wellpoint, Inc. *	131,308	10,164,552

		22,149,450
Holdings Companies/Conglomerates - 2.00%
General Electric Company	270,388	9,209,415

Capital Appreciation Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Hotels & Restaurants - 1.65%
Chipotle Mexican Grill, Inc., Class A * (a)	16,800	$	828,912
Marriott International, Inc., Class A	179,600		6,763,736

			7,592,648
Insurance - 2.07%
American International Group, Inc.	149,208		9,522,455
Internet Service Provider - 4.69%
Google, Inc., Class A *	37,793		14,305,784
Yahoo!, Inc. *	252,092		7,265,292

			21,571,076
Leisure Time - 3.93%
Electronic Arts, Inc. *	145,608		7,421,640
Walt Disney Company	360,100		10,676,965

			18,098,605
Petroleum Services - 2.80%
Schlumberger, Ltd.	129,394		7,931,852
Suncor Energy, Inc.	63,952		4,961,396

			12,893,248
Pharmaceuticals - 11.88%
Abbott Laboratories	143,100		6,968,970
Gilead Sciences, Inc. *	182,686		11,582,293
Novartis AG, ADR	200,476		11,451,189
Pfizer, Inc.	176,000		4,850,560
Roche Holdings, Ltd., SADR	153,311		14,106,927
Sanofi-Aventis, ADR	127,173		5,716,426

			54,676,365
Retail Grocery - 1.79%
Whole Foods Market, Inc. (a)	153,534		8,232,493
Retail Trade - 4.51%
Federated Department Stores, Inc.	252,390		9,585,772
Kohl's Corp. *	36,000		2,250,360
Target Corp.	134,993		6,532,311
Williams-Sonoma, Inc. (a)	80,880		2,382,725

			20,751,168
Semiconductors - 4.77%
Broadcom Corp., Class A *	234,550		6,905,152
Marvell Technology Group, Ltd. *	449,050		7,862,866
Texas Instruments, Inc.	220,050		7,171,429

			21,939,447
Software - 4.17%
Adobe Systems, Inc. *	333,615		10,822,471
Microsoft Corp.	99,541		2,557,208
SAP AG, SADR	121,688		5,809,385

			19,189,064
Telecommunications Equipment &
Services - 4.61%
Corning, Inc. *	290,300		6,456,272
Nokia Oyj, SADR	261,631		5,462,855
QUALCOMM, Inc.	246,900		9,300,723

			21,219,850

The accompanying notes are an integral part of the financial statements. 197

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Capital Appreciation Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Travel Services - 2.10%
American Express Company		184,074	$	9,671,248

TOTAL COMMON STOCKS (Cost $443,503,982)			$	452,161,817


SHORT TERM INVESTMENTS - 5.97%
General Electric Capital Corp.
5.18% due 09/01/2006	$	8,950,000	$	8,950,000
State Street Navigator Securities Lending
Prime Portfolio (c)		18,532,002		18,532,002

TOTAL SHORT TERM INVESTMENTS
(Cost $27,482,002)			$	27,482,002

Total Investments (Capital Appreciation Fund)
(Cost $470,985,984) - 104.21%			$	479,643,819
Liabilities in Excess of Other Assets - (4.21)%				(19,398,950)

TOTAL NET ASSETS - 100.00%			$	460,244,869



Core Bond Fund
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 12.72%
U.S. Treasury Bonds - 6.20%
4.50% due 02/15/2036 (a)***	$	2,450,000	$	2,305,871
5.375% due 02/15/2031 (a)		876,000		931,982
6.25% due 08/15/2023 to
05/15/2030 (a)***		6,664,000		7,711,557
8.875% due 02/15/2019 ***		991,000		1,357,282

				12,306,692
U.S. Treasury Notes - 6.52%
4.50% due 02/15/2016 (a)		104,000		102,062
4.50% due 11/15/2015 (a)***		1,220,000		1,197,792
4.875% due 08/15/2016		205,000		207,322
4.875% due 05/31/2008 to 07/31/2011 (a)		5,485,000		5,507,328
5.00% due 07/31/2008 (a)		390,000		391,402
5.125% due 06/30/2008 to 05/15/2016 (a)		5,377,000		5,529,581

				12,935,487

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $25,201,312)			$	25,242,179


U.S. GOVERNMENT AGENCY OBLIGATIONS - 38.92%
Federal Home Loan Bank - 2.97%
4.625% due 07/18/2007		3,525,000		3,504,626
5.46% due 11/30/2015 ***		2,397,790		2,384,088

				5,888,714
Federal Home Loan Mortgage Corp. - 18.74%
3.50% due 05/15/2026		193,289		188,225
3.57% due 06/15/2029 ***		849,387		823,410
3.90% due 01/15/2023		1,105,179		1,070,676
4.00% due 04/15/2025		609,757		596,974
4.50% due 02/01/2019 to 08/01/2035		5,338,718		5,151,494
4.50% due 08/01/2020 to 07/01/2035 ***		3,095,292		2,925,071
5.00% due 10/01/2020 to 03/15/2025		4,879,981		4,791,305

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp.
(continued)
5.00% due 07/01/2035 ***	$	1,156,666	$	1,109,578
5.095% due 02/01/2036 ***		1,351,194		1,329,715
5.50% due 01/01/2018 to 05/15/2026		3,739,274		3,735,325
5.50% due 11/01/2018 ***		756,310		754,591
5.601% due 05/01/2036 ***		1,747,596		1,747,475
6.00% due 07/01/2036		785,105		786,405
6.00% TBA **		10,724,000		10,832,915
6.625% due 09/15/2009 ***		1,279,000		1,335,426

				37,178,585
Federal National Mortgage
Association - 14.38%
4.33% due 11/01/2011		192,710		185,011
4.50% due 02/01/2035		94,872		89,404
4.653% due 10/01/2012		151,533		148,169
4.868% due 09/01/2035		203,983		199,165
5.00% due 03/01/2034 to 12/01/2034		2,844,564		2,733,595
5.00% due 07/01/2033 ***		854,558		821,855
5.068% due 07/01/2035		423,574		418,011
5.298% due 04/01/2036		335,251		334,026
5.504% due 01/01/2033 to 06/01/2036		7,028,123		6,925,762
5.50% TBA **		11,682,000		11,462,963
5.662% due 06/01/2036		282,295		283,503
5.67% due 03/01/2009		430,076		432,678
5.829% due 07/01/2036		1,236,323		1,246,718
5.921% due 09/21/2008		1,053,000		1,056,291
6.00% due 07/01/2036		1,135,721		1,136,939
6.00% TBA **		457,000		457,429
6.44% due 06/01/2036		597,471		610,251

				28,541,770
Government National Mortgage
Association - 2.83%
5.50% due 10/20/2034 to 06/15/2035		1,609,883		1,592,501
6.00% TBA **		1,127,000		1,135,100
6.50% TBA **		2,825,000		2,882,383

				5,609,984

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $76,838,741)			$	77,219,053


FOREIGN GOVERNMENT OBLIGATIONS - 0.61%
Canada - 0.09%
Province of Quebec Canada
7.50% due 09/15/2029 (a)		140,000		175,069
Chile - 0.11%
Republic of Chile
5.50% due 01/15/2013		210,000		210,777
Mexico - 0.34%
Government of Mexico
5.625% due 01/15/2017 (a)		370,000		364,820
5.875% due 01/15/2014 (a)		174,000		177,045
6.75% due 09/27/2034 (a)		125,000		132,625

				674,490

The accompanying notes are an integral part of the financial statements. 198

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Russia - 0.07%
Russian Federation
5.00% due 03/31/2030	$	125,000	$	138,975

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $1,162,210)			$	1,199,311


CORPORATE BONDS - 19.54%
Aerospace - 0.02%
Lockheed Martin Corp.
6.15% due 09/01/2036		30,000		30,839
Apparel & Textiles - 0.22%
Mohawk Industries, Inc.
5.75% due 01/15/2011		430,000		426,542
Automobiles - 0.43%
DaimlerChrysler N.A. Holding Corp.
5.75% due 05/18/2009		285,000		286,216
6.50% due 11/15/2013 (a)		395,000		406,771
8.50% due 01/18/2031		141,000		169,319

				862,306
Banking - 1.27%
Bank of America Corp.
4.25% due 10/01/2010		360,000		347,435
5.375% due 08/15/2011		355,000		356,514
5.375% due 06/15/2014 (a)		120,000		119,670
Credit Suisse USA, Inc.
5.85% due 08/16/2016 (a)		115,000		117,277
HSBC Holdings PLC
6.50% due 05/02/2036		240,000		252,723
PNC Funding Corp.
5.25% due 11/15/2015		339,000		330,962
Royal Bank of Scotland Group PLC
5.00% due 10/01/2014		280,000		270,888
Wachovia Corp.
4.875% due 02/15/2014		280,000		268,368
Washington Mutual Bank FA
5.65% due 08/15/2014		255,000		253,870
Zions Bancorporation
5.50% due 11/16/2015		215,000		211,263

				2,528,970
Broadcasting - 0.10%
Viacom, Inc.
5.75% due 04/30/2011		130,000		128,930
6.25% due 04/30/2016		60,000		59,222

				188,152
Business Services - 0.15%
Xerox Corp.
6.40% due 03/15/2016		305,000		301,979
Cable and Television - 0.70%
AOL Time Warner, Inc.
6.875% due 05/01/2012		310,000		324,575
Comcast Corp.
5.65% due 06/15/2035		146,000		129,440
5.90% due 03/15/2016		335,000		332,087

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cable and Television (continued)
News America, Inc.
6.40% due 12/15/2035	$	225,000	$	215,607
Rogers Cable, Inc.
5.50% due 03/15/2014		265,000		245,456
Time Warner Entertainment Company, LP
8.375% due 07/15/2033		126,000		144,497

				1,391,662

Cellular Communications - 0.69%
America Movil SA de CV
6.375% due 03/01/2035		139,000		132,812
AT&T Broadband Corp.
8.375% due 03/15/2013		237,000		268,643
Cingular Wireless Services, Inc.
8.125% due 05/01/2012		235,000		263,110
Verizon Wireless Capital LLC
5.375% due 12/15/2006		375,000		374,858
Vodafone Group PLC
5.50% due 06/15/2011		325,000		323,987

				1,363,410

Computers & Business Equipment - 0.15%
Cisco Systems, Inc.
5.50% due 02/22/2016		295,000		293,704
Construction & Mining Equipment - 0.11%
Caterpillar, Inc.
6.05% due 08/15/2036		210,000		216,188
Crude Petroleum & Natural Gas - 0.13%
EnCana Corp.
6.50% due 08/15/2034		126,000		130,676
XTO Energy Inc.
6.10% due 04/01/2036		125,000		122,314

				252,990

Domestic Oil - 0.76%
Anadarko Finance Company, Series B
6.75% due 05/01/2011		350,000		366,544
ConocoPhillips
5.90% due 10/15/2032 (a)		310,000		312,870
Devon Financing Corp., ULC
6.875% due 09/30/2011		435,000		461,312
Hess Corp.
6.65% due 08/15/2011		350,000		366,272

				1,506,998

Drugs & Health Care - 0.27%
Wyeth
5.50% due 02/15/2016		540,000		534,892
Electrical Equipment - 0.07%
Exelon Generation Company LLC
5.35% due 01/15/2014		145,000		141,540
Electrical Utilities - 1.74%
Allegheny Energy Supply Company LLC
8.25% due 04/15/2012		195,000		210,600
American Electric Power Company, Inc., Series C
5.375% due 03/15/2010 (a)		210,000		209,611

The accompanying notes are an integral part of the financial statements. 199

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Electrical Utilities (continued)
Dominion Resources, Inc.
5.95% due 06/15/2035 (a)	$	136,000	$	128,870
DPL, Inc.
6.875% due 09/01/2011		405,000		424,452
Empresa Nacional de Electricidad SA
8.625% due 08/01/2015 (a)		160,000		183,499
FirstEnergy Corp.
6.45% due 11/15/2011		185,000		191,871
Kansas Gas & Electric
5.647% due 03/29/2021		339,000		331,576
MidAmerican Energy Holdings Company
6.125% due 04/01/2036		145,000		143,178
Nevada Power Company
5.95% due 03/15/2016		300,000		296,757
Ohio Edison Company
6.40% due 07/15/2016		115,000		119,668
Progress Energy, Inc.
6.85% due 04/15/2012		560,000		593,168
PSEG Power LLC
5.00% due 04/01/2014		140,000		132,791
Public Service Company of Colorado
7.875% due 10/01/2012		297,000		334,056
TXU Electric Delivery Company
6.375% due 01/15/2015		145,000		149,181

				3,449,278
Financial Services - 6.30%
AMBAC Financial Group, Inc.
5.95% due 12/05/2035		120,000		117,705
Capital One Bank
4.875% due 05/15/2008		445,000		441,740
Capital One Financial Corp.
5.50% due 06/01/2015		295,000		287,152
6.15% due 09/01/2016		215,000		215,945
8.75% due 02/01/2007		470,000		475,837
CIT Group, Inc., Series MTN
4.75% due 08/15/2008		364,000		360,323
Citigroup, Inc.
3.625% due 02/09/2009		715,000		689,841
5.125% due 02/14/2011 (a)		285,000		283,710
5.85% due 08/02/2016		285,000		292,037
Credit Suisse USA, Inc.
5.50% due 08/16/2011		495,000		497,061
General Electric Capital Corp.
4.875% due 03/04/2015 (a)		193,000		186,541
6.75% due 03/15/2032		140,000		158,005
General Electric Capital Corp., Series A, MTN
3.75% due 12/15/2009 (a)		456,000		436,615
6.00% due 06/15/2012		578,000		597,342
General Motors Acceptance Corp.
6.75% due 12/01/2014		100,000		95,869
HSBC Finance Corp.
4.75% due 04/15/2010		907,000		890,464
International Lease Finance Corp., Series MTN
5.45% due 03/24/2011		445,000		445,416
5.62% due 05/24/2010 (b)		215,000		215,271

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
JP Morgan Chase & Company
5.125% due 09/15/2014	$	170,000	$	165,583
5.60% due 06/01/2011		995,000		1,005,684
Lazard Group, LLC
7.125% due 05/15/2015		300,000		313,679
Lehman Brothers Holdings, Inc., Series MTN
5.75% due 05/17/2013		420,000		424,649
Merrill Lynch & Company, Inc.
6.05% due 05/16/2016		355,000		366,158
Merrill Lynch & Company, Inc., Series MTN
5.77% due 07/25/2011		350,000		356,352
Merrill Lynch & Company, Inc., Series MTNC
4.25% due 02/08/2010		255,000		246,788
Morgan Stanley
5.375% due 10/15/2015		325,000		317,983
Morgan Stanley, Series MTN
5.625% due 01/09/2012		355,000		357,991
6.25% due 08/09/2026		140,000		142,596
Residential Capital Corp.
6.125% due 11/21/2008		475,000		476,034
6.50% due 04/17/2013		130,000		131,150
6.875% due 06/29/2007 (b)		220,000		221,217
SLM Corp., Series MTN
5.6647% due 07/26/2010 (b)		490,000		489,952
The Goldman Sachs Group, Inc.
5.125% due 01/15/2015		513,000		496,168
6.45% due 05/01/2036		145,000		146,755
Washington Mutual, Inc.
4.00% due 01/15/2009		167,000		162,148

				12,507,761
Food & Beverages - 0.54%
Kraft Foods, Inc.
5.25% due 10/01/2013		400,000		392,795
5.625% due 11/01/2011		353,000		355,243
SABMiller PLC
5.78% due 07/01/2009 (b)		155,000		155,007
6.50% due 07/01/2016		155,000		161,608

				1,064,653
Gas & Pipeline Utilities - 0.51%
Duke Capital LLC
7.50% due 10/01/2009		256,000		271,506
8.00% due 10/01/2019		80,000		91,367
Energy Transfer Partners LP
5.65% due 08/01/2012		210,000		207,402
Kinder Morgan Energy Partners LP
5.80% due 03/15/2035		145,000		130,179
Kinder Morgan Finance Company, ULC
5.70% due 01/05/2016		115,000		104,642
Kinder Morgan, Inc.
6.50% due 09/01/2012		215,000		210,836

				1,015,932
Healthcare Products - 0.33%
Baxter International, Inc.
5.90% due 09/01/2016		210,000		212,981

The accompanying notes are an integral part of the financial statements. 200

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Healthcare Products (continued)
Boston Scientific Corp.
6.00% due 06/15/2011	$	215,000	$	216,923
6.25% due 11/15/2035		145,000		146,244
6.40% due 06/15/2016		75,000		75,913

				652,061

Healthcare Services - 0.16%
Aetna, Inc.
6.625% due 06/15/2036		100,000		104,279
WellPoint, Inc.
5.85% due 01/15/2036		220,000		209,914

				314,193

Insurance - 0.41%
American International Group, Inc.
4.70% due 10/01/2010		368,000		360,315
GE Global Insurance Holding Corp.
7.00% due 02/15/2026		160,000		173,127
Liberty Mutual Insurance Company
7.875% due 10/15/2026		90,000		100,403
XL Capital, Ltd.
6.375% due 11/15/2024 (a)		185,000		182,920

				816,765

International Oil - 0.20%
Pemex Project Funding Master Trust
6.625% due 06/15/2035 (a)		120,000		117,840
7.375% due 12/15/2014		124,000		134,354
Petro-Canada
5.95% due 05/15/2035		155,000		147,274

				399,468

Investment Companies - 0.29%
Allied Capital Corp.
6.625% due 07/15/2011		565,000		573,476
Leisure Time - 0.14%
Harrah's Operating Company, Inc.
6.50% due 06/01/2016		285,000		282,744
Manufacturing - 0.20%
Tyco International Group SA
6.375% due 10/15/2011		389,000		405,709
Paper - 0.31%
Celulosa Arauco y Constitucion SA
5.625% due 04/20/2015		165,000		159,460
International Paper Company
5.85% due 10/30/2012		440,000		446,914

				606,374

Petroleum Services - 0.21%
Halliburton Company
5.50% due 10/15/2010		167,000		167,659
8.75% due 02/15/2021 (a)		203,000		256,866

				424,525

Pharmaceuticals - 0.07%
Teva Pharmaceutical Finance LLC
6.15% due 02/01/2036		140,000		132,238

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Real Estate - 0.76%
Developers Diversified Realty Corp., REIT
5.375% due 10/15/2012	$	336,000	$	330,285
Duke Realty LP
5.625% due 08/15/2011		140,000		140,199
5.95% due 02/15/2017		140,000		140,932
ProLogis, REIT
5.25% due 11/15/2010		105,000		103,892
5.50% due 04/01/2012		290,000		288,138
Simon Property Group LP, REIT
5.60% due 09/01/2011		170,000		170,434
6.10% due 05/01/2016		330,000		338,686

				1,512,566
Telecommunications Equipment &
Services - 0.68%
Corning, Inc.
7.25% due 08/15/2036		155,000		161,405
Deutsche Telekom International Finance BV
5.75% due 03/23/2016		275,000		267,502
8.25% due 06/15/2030 (b)		70,000		84,444
Embarq Corp.
7.082% due 06/01/2016		210,000		214,271
SBC Communications, Inc.
5.10% due 09/15/2014		455,000		433,915
6.15% due 09/15/2034		190,000		181,046

				1,342,583
Telephone - 1.37%
AT&T Corp.
7.30% due 11/15/2011 (b)		165,000		178,137
AT&T, Inc.
6.80% due 05/15/2036 (a)		145,000		149,932
BellSouth Corp.
6.00% due 11/15/2034		100,000		91,783
British Telecommunications PLC
zero coupon, Step up to 9.125% on
12/15/2006 due 12/15/2030 (b)		119,000		153,596
Sprint Capital Corp.
6.00% due 01/15/2007		579,000		579,719
6.125% due 11/15/2008		336,000		340,462
8.375% due 03/15/2012		170,000		189,988
Telecom Italia Capital SA
6.00% due 09/30/2034		155,000		139,939
7.20% due 07/18/2036		70,000		73,108
Telefonica Emisones SAU
5.984% due 06/20/2011		340,000		345,056
Verizon Communications, Inc.
5.35% due 02/15/2011		220,000		219,023
5.55% due 02/15/2016		270,000		263,013

				2,723,756
Transportation - 0.25%
Canadian National Railway Company
6.20% due 06/01/2036		225,000		236,735

The accompanying notes are an integral part of the financial statements. 201

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Transportation (continued)
Norfolk Southern Corp.
7.05% due 05/01/2037	$	228,000	$	261,429

				498,164


TOTAL CORPORATE BONDS (Cost $38,632,445)			$	38,762,418


MUNICIPAL BONDS - 0.34%
Texas - 0.34%
Brazos Texas Higher Education Authority, Inc.
5.03% due 12/01/2041		685,000		682,390

TOTAL MUNICIPAL BONDS (Cost $682,014)			$	682,390


COLLATERALIZED MORTGAGE
OBLIGATIONS - 24.91%
Banc of America Commercial Mortgage, Inc.,
Series 2002-PB2, Class B
6.309% due 06/11/2035		143,000		149,051
Banc of America Commercial Mortgage, Inc.,
Series 2004-1, Class A4
4.76% due 11/10/2039		178,000		170,896
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2003-T10, Class A2
4.74% due 03/13/2040		114,000		110,244
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2004-ESA, Class B
4.888% due 05/14/2016		78,000		77,181
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2004-ESA, Class C
4.937% due 05/14/2016		584,000		579,940
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2005-PWR8, Class AAB
4.581% due 06/11/2041		610,000		583,593
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2006-T22, Class AM
5.6336% due 04/12/2038 (b)		344,000		345,943
Commercial Mortgage Pass Through Certificates,
Series 1999-1, Class E
7.2244% due 05/15/2032 (b)		443,000		459,068
Commercial Mortgage Pass Through Certificates,
Series 2000-C1, Class C
7.706% due 08/15/2033		74,000		79,881
Countrywide Alternative Loan Trust,
Series 2005-J4, Class 2A1B
5.4444% due 07/25/2035 (b)		78,184		78,167
CS First Boston Mortgage Securities Corp.,
Series 2001-CP4, Class A4
6.18% due 12/15/2035		606,000		627,152
CS First Boston Mortgage Securities Corp.,
Series 2002-CKN2, Class A3
6.133% due 04/15/2037		819,000		849,581
CS First Boston Mortgage Securities Corp.,
Series 2002-CKP1, Class A3
6.439% due 12/15/2035		282,000		295,728
CS First Boston Mortgage Securities Corp.,
Series 2002-CKS4, Class A2
5.183% due 11/15/2036		431,000		428,106

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
CS First Boston Mortgage Securities Corp.,
Series 2002-CP3, Class A3
5.603% due 07/15/2035	$	342,000	$	346,357
CS First Boston Mortgage Securities Corp.,
Series 2003-C4, Class A4
5.137% due 08/15/2036 (b)		238,000		234,450
CS First Boston Mortgage Securities Corp.,
Series 2004-C2, Class A2
5.416% due 05/15/2036 (b)		871,000		868,328
Federal Home Loan Mortgage Corp.,
Series 2003-2682, Class LC
4.50% due 07/15/2032		567,000		531,552
Federal Home Loan Mortgage Corp.,
Series 2004-2727, Class PE
4.50% due 07/15/2032		989,000		924,531
Federal Home Loan Mortgage Corp.,
Series 2004-2904, Class CM
5.00% due 01/15/2018		638,912		632,960
Federal Home Loan Mortgage Corp.,
Series 2005-2941, Class WA
5.00% due 11/15/2024		420,188		417,527
Federal Home Loan Mortgage Corp.,
Series 2005-2948, Class QA
5.00% due 10/15/2025		633,770		629,773
Federal Home Loan Mortgage Corp.,
Series 2005-3017, Class TA
4.50% due 08/15/2035		460,000		441,895
Federal Home Loan Mortgage Corp.,
Series 2005-3020, Class MA
5.50% due 04/15/2027		657,139		658,770
Federal Home Loan Mortgage Corp.,
Series 2005-3026, Class GJ
4.50% due 02/15/2029		584,876		574,016
Federal Home Loan Mortgage Corp.,
Series 2005-3026, Class PC
4.50% due 01/15/2034		315,000		290,435
Federal Home Loan Mortgage Corp.,
Series 2005-3057, Class MD
4.50% due 08/15/2034		386,000		356,826
Federal Home Loan Mortgage Corp.,
Series 2006-3117, Class PN
5.00% due 11/15/2021		1,310,332		1,303,030
Federal Home Loan Mortgage Corp.,
Series 2006-3135, Class JA
6.00% due 09/15/2027		819,396		829,876
Federal Home Loan Mortgage Corp.,
Series 2006-3147, Class PC
5.50% due 04/15/2033		170,000		167,924
Federal Home Loan Mortgage Corp.,
Series 2006-3151, Class LA
6.00% due 11/15/2027		865,066		875,115
Federal Home Loan Mortgage Corp.,
Series 2006-3167, Class QA
6.00% due 10/15/2026		2,028,000		2,048,009
Federal Home Loan Mortgage Corp.,
Series 2006-3176, Class HA
6.00% due 02/15/2028		1,425,008		1,444,232

The accompanying notes are an integral part of the financial statements. 202

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp.,
Series 2006-3178, Class MA
6.00% due 10/15/2026	$	470,606	$	476,459
Federal Home Loan Mortgage Corp.,
Series 2006-3184, Class LA
6.00% due 03/15/2028		1,402,579		1,419,042
Federal Home Loan Mortgage Corp.,
Series 2006-3192, Class GA
6.00% due 03/15/2027		696,726		704,442
Federal National Mortgage Association,
Series 2002-T11, Class A
4.768% due 04/25/2012		50,376		49,924
Federal National Mortgage Association,
Series 2003-34, Class QJ
4.50% due 01/25/2016		1,555,609		1,527,121
Federal National Mortgage Association,
Series 2003-76, Class DE
4.00% due 09/25/2031 ***		1,405,061		1,325,394
Federal National Mortgage Association,
Series 2003-92, Class KQ
3.50% due 06/25/2023		471,336		460,516
Federal National Mortgage Association,
Series 2003-T1, Class A
3.807% due 11/25/2012		153,339		147,412
Federal National Mortgage Association,
Series 2004-69, Class CT
4.50% due 06/25/2018		219,429		213,537
Federal National Mortgage Association,
Series 2005-38, Class CD
5.00% due 06/25/2019		398,829		394,042
Federal National Mortgage Association,
Series 2005-45, Class BA
4.50% due 11/25/2014		1,268,577		1,254,920
Federal National Mortgage Association,
Series 2005-63, Class HA
5.00% due 04/25/2023		738,327		727,267
Federal National Mortgage Association,
Series 2005-65, Class WG
4.50% due 08/25/2026		984,551		969,946
Federal National Mortgage Association,
Series 2005-77, Class BX
4.50% due 07/25/2028		204,212		200,968
Federal National Mortgage Association,
Series 2006-18, Class PA
5.50% due 01/25/2026		472,000		472,322
Federal National Mortgage Association,
Series 2006-29, Class PA
5.50% due 08/25/2026		1,045,000		1,046,707
Federal National Mortgage Association,
Series 2006-31, Class PA
5.50% due 11/25/2026		465,000		465,804
Federal National Mortgage Association,
Series 2006-41, Class MA
5.50% due 04/25/2024		415,000		415,684
Federal National Mortgage Association,
Series 2006-81, Class NA
6.00% due 02/25/2027		1,178,000		1,191,189

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
First Union National Bank Commercial Mortgage,
Series 2001-C4, Class B
6.417% due 12/12/2033	$	188,000	$	197,436
GE Capital Commercial Mortgage Corp.,
Series 2001-3, Class A2
6.07% due 06/10/2038		1,004,000		1,038,639
GE Capital Commercial Mortgage Corp.,
Series 2002-2A, Class A3
5.349% due 08/11/2036		586,000		586,350
GE Capital Commercial Mortgage Corp.,
Series 2002-3A, Class A2
4.996% due 12/10/2037		442,000		435,163
GE Capital Commercial Mortgage Corp.,
Series 2003-C2, Class A4
5.145% due 07/10/2037		835,000		824,268
GE Capital Commercial Mortgage Corp.,
Series 2004-C3, Class A4
5.189% due 07/10/2039 (b)		552,000		540,117
GMAC Commercial Mortgage Securities, Inc.,
Series 2002-C3, Class A2
4.93% due 07/10/2039		127,000		124,412
GMAC Commercial Mortgage Securities, Inc.,
Series 2003-C2, Class B
5.4729% due 05/10/2040 (b)		308,000		310,202
GMAC Commercial Mortgage Securities, Inc.,
Series 2003-C3, Class A4
5.023% due 04/10/2040		1,041,000		1,017,538
GMAC Commercial Mortgage Securities, Inc.,
Series 2004-C1, Class A1
3.118% due 03/10/2038		261,321		253,988
Government National Mortgage Association,
Series 2006-3, Class A
4.212% due 01/16/2028		121,231		118,095
Government National Mortgage Association,
Series 2006-32, Class A
5.079% due 01/16/2030		326,405		324,488
Government National Mortgage Association,
Series 2006-8, Class A
3.942% due 08/16/2025		192,693		187,230
Greenwich Capital Commercial Funding Corp.,
Series 2006-GG7, Class A4
6.1101% due 07/10/2038 (b)		429,000		445,166
GS Mortgage Securities Corp. II,
Series 1998-C1, Class B
6.97% due 10/18/2030		109,000		112,163
GS Mortgage Securities Corp. II,
Series 1998-GLII, Class A2
6.562% due 04/13/2031		728,000		739,305
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2003-CB7, Class A4
4.879% due 01/12/2038 (b)		270,000		262,043
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2003-ML1A, Class A2
4.767% due 03/12/2039		525,000		508,014
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2004-C3, Class A1
3.765% due 01/15/2042		952,519		928,941

The accompanying notes are an integral part of the financial statements. 203

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
LB Commercial Conduit Mortgage Trust,
Series 1999-C2, Class A1
7.105% due 10/15/2032	$	29,694	$	29,790
LB-UBS Commercial Mortgage Trust,
Series 2003-C7, Class A4
4.931% due 09/15/2035 (b)		801,000		781,092
Merrill Lynch Mortgage Trust,
Series 2002-MW1, Class A4
5.619% due 07/12/2034		568,000		575,666
Merrill Lynch Mortgage Trust,
Series 2004-KEY2, Class A4
4.864% due 08/12/2039 (b)		414,000		396,732
Morgan Stanley Capital I, Series 2003-T11, Class A4
5.15% due 06/13/2041		590,000		582,989
Morgan Stanley Capital I,
Series 2004-HQ4, Class A2
3.92% due 04/14/2040		283,979		277,693
Morgan Stanley Capital I,
Series 2005-HQ5, Class AAB
5.037% due 01/14/2042		176,000		172,906
Morgan Stanley Capital I,
Series 2006-HQ9, Class A4
5.731% due 07/20/2044 (b)		395,000		401,992
Morgan Stanley Dean Witter Capital I,
Series 2002-IQ3, Class A4
5.08% due 09/15/2037		682,000		672,196
Salomon Brothers Mortgage Securities VII,
Series 2001-C2, Class A3
6.499% due 10/13/2011		340,000		356,703
Wachovia Bank Commercial Mortgage Trust,
Series 2002-C1, Class A4
6.287% due 04/15/2034		347,000		362,644
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C6, Class A3
4.957% due 08/15/2035		588,000		579,477
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C6, Class A4
5.125% due 08/15/2035		281,000		276,884
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C8, Class A3
4.445% due 11/15/2035		186,000		180,502
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C9, Class A4
5.012% due 12/15/2035		131,000		128,042
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C10, Class A4
4.748% due 02/15/2041		494,000		473,303
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C14, Class A4
5.088% due 08/15/2041 (b)		497,000		486,250
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C15, Class A4
4.803% due 10/15/2041		347,000		331,824
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C20, Class APB
5.09% due 07/15/2042 (b)		703,000		690,765

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Wachovia Bank Commercial Mortgage Trust,
Series 2006-C26, Class APB
5.997% due 06/15/2045	$	497,000	$	513,246
Wachovia Mortgage Loan Trust LLC,
Series 2006-AMN1, Class A1
5.3744% due 08/25/2036 (b)		314,029		313,459

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $49,144,297)			$	49,410,546


ASSET BACKED SECURITIES - 9.32%
American Express Credit Account Master Trust,
Series 2006-2, Class A
5.35% due 01/15/2014		361,000		365,174
AmeriCredit Automobile Receivables Trust,
Series 2003-DM, Class A4
2.84% due 08/06/2010		395,420		389,343
Ameriquest Mortgage Securities Inc.,
Series 2004-R12, Class A3
4.6588% due 01/25/2035		241,173		241,383
Capital Auto Receivables Asset Trust,
Series 2004-1, Class A3
2.00% due 11/15/2007		88,678		88,109
Capital Auto Receivables Asset Trust,
Series 2006-1, Class A3
5.03% due 10/15/2009		265,000		264,255
Capital One Multi-Asset Execution Trust,
Series 2003-C4, Class C4
6.00% due 08/15/2013		364,000		371,430
Capital One Multi-Asset Execution Trust,
Series 2006-A10, Class A10
5.15% due 06/15/2014		282,000		282,661
Capital One Prime Auto Receivables Trust,
Series 2006-1, Class A3
5.04% due 09/15/2010		342,000		341,130
Carrington Mortgage Loan Trust,
Series 2005-NC3, Class A1B
5.4844% due 06/25/2035 (b)		322,224		322,303
Chase Credit Card Master Trust,
Series 2003-3, Class A
5.44% due 10/15/2010 (b)		355,000		355,673
Chase Issuance Trust, Series 2004-A9, Class A9
3.22% due 06/15/2010		435,000		425,492
Chase Issuance Trust, Series 2006-A3, Class A3
5.32% due 07/15/2011 (b)		845,000		845,265
Citibank Credit Card Issuance Trust,
Series 2000-A3, Class A3
6.875% due 11/16/2009		184,000		187,414
Citibank Credit Card Issuance Trust,
Series 2004-A4, Class A4
3.20% due 08/24/2009		510,000		499,651
Citibank Credit Card Issuance Trust,
Series 2005-B1, Class B1
4.40% due 09/15/2010		256,000		251,581
Citibank Credit Card Issuance Trust,
Series 2006-A4, Class A4
5.45% due 05/10/2013		412,000		417,408

The accompanying notes are an integral part of the financial statements. 204

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Citicorp Residential Mortgage Securities Inc,
Series 2006-1, Class A2
5.682% due 07/25/2036	$	282,000	$	281,994
Countrywide Asset-Backed Certificates,
Series 2005-12, Class 1A1
5.4744% due 02/25/2036 (b)		142,043		142,067
Countrywide Asset-Backed Certificates,
Series 2005-BC4, Class 2A1
5.4444% due 08/25/2035 (b)		82,361		82,377
Countrywide Asset-Backed Certificates,
Series 2006-11, Class 3AV1
5.3844% due 09/25/2046 (b)		401,836		401,836
Countrywide Asset-Backed Certificates,
Series 2006-13, Class 3AV2
5.4744% due 01/25/2037 (b)		351,000		350,835
Countrywide Asset-Backed Certificates,
Series 2006-ABC1, Class A1
5.3544% due 05/25/2036 (b)		325,802		325,700
Countrywide Asset-Backed Certificates,
Series 2006-S1, Class A2
5.549% due 08/25/2021		544,000		542,470
Drive Auto Receivables Trust, Series 2006-1, Class
A3
5.49% due 05/15/2011		311,000		312,847
Encore Credit Receivables Trust,
Series 2005-3, Class 2A1
5.4444% due 10/25/2035 (b)		72,153		72,159
Ford Credit Auto Owner Trust,
Series 2005-A, Class A3
3.48% due 11/15/2008		479,443		475,271
Ford Credit Auto Owner Trust,
Series 2005-B, Class A3
4.17% due 01/15/2009		333,000		330,671
Ford Credit Auto Owner Trust,
Series 2006-B, Class A4
5.25% due 09/15/2011		476,000		476,112
Ford Credit Floorplan Master Owner Trust,
Series 2006-3, Class A
5.51% due 06/15/2011 (b)		426,000		426,622
Franklin Auto Trust, Series 2005-1, Class A2
4.84% due 09/22/2008		69,872		69,785
Harley-Davidson Motorcycle Trust, Series
2006-2, Class A2
5.35% due 03/15/2013		140,000		140,875
Honda Auto Receivables Owner Trust,
Series 2004-2, Class A3
3.30% due 06/16/2008		449,676		446,137
Hyundai Auto Receivables Trust,
Series 2005-A, Class A4
4.18% due 02/15/2012		275,000		268,160
M.A.S.Transactions Asset Backed Securities Trust,
Series 2004-OPT2, Class A2
5.6744% due 09/25/2034 (b)		38,289		38,347
M.A.S.Transactions Asset Backed Securities Trust,
Series 2005-AB1, Class A1B
5.143% due 11/25/2035 (b)		184,011		182,918

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
MBNA Master Credit Card Trust USA,
Series 2000-L, Class A
6.50% due 04/15/2010	$	285,000	$	289,515
Merrill Lynch Mortgage Investors Inc.,
Series 2005-SD1, Class A1
5.5044% due 05/25/2046 (b)		113,863		113,883
Morgan Stanley ABS Capital I,
Series 2004-WMC2, Class A2
5.6844% due 07/25/2034 (b)		75,646		75,645
Morgan Stanley ABS Capital I,
Series 2006-NC1, Class A1
5.4044% due 12/25/2035 (b)		328,101		328,116
Morgan Stanley Home Equity Loans,
Series 2006-2, Class A2
5.4344% due 02/25/2036 (b)		210,000		210,066
Nissan Auto Lease Trust, Series 2005-A, Class A2
4.61% due 01/15/2008		124,730		124,496
Nissan Auto Receivables Owner Trust,
Series 2005-B, Class A2
3.75% due 09/17/2007		31,547		31,506
Nissan Auto Receivables Owner Trust,
Series 2006-B, Class A3
5.16% due 02/15/2010		152,000		151,953
Nomura Home Equity Loan Inc.,
Series 2006-WF1, Class A1
5.45% due 03/25/2036 (b)		330,516		330,516
Northstar Education Finance, Inc.,
Series 2005-1, Class A5
3.98% due 10/28/2045		207,000		204,419
Novastar Home Equity Loan,
Series 2005-2, Class A2B
5.4744% due 10/25/2035 (b)		301,537		301,607
Option One Mortgage Loan Trust,
Series 2006-1, Class 2A1
5.3944% due 01/25/2036 (b)		241,436		241,479
Ownit Mortgage Loan Asset-Backed Certificates,
Series 2006-1, Class AF1
5.424% due 12/25/2036		154,426		153,582
Peco Energy Transition Trust,
Series 2001-A, Class A1
6.52% due 12/31/2010		168,000		175,566
PG&E Energy Recovery Funding LLC,
Series 2005-2, Class A2
5.03% due 03/25/2014		400,000		398,702
Providian Gateway Master Trust,
Series 2004-DA, Class A
3.35% due 09/15/2011		622,000		609,990
SLM Student Loan Trust, Series 2004-1, Class A2
5.625% due 07/25/2018 (b)		282,000		283,238
SLM Student Loan Trust, Series 2004-1, Class A6
3.46% due 07/25/2039		250,000		239,218
Structured Asset Investment Loan Trust,
Series 2005-11, Class A4
5.4144% due 01/25/2036 (b)		236,380		236,409
Triad Auto Receivables Owner Trust,
Series 2003-B, Class A4
3.20% due 12/13/2010		128,774		126,407

The accompanying notes are an integral part of the financial statements. 205

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
USAA Auto Owner Trust, Series 2004-3, Class A3
3.16% due 02/17/2009	$	150,633	$	149,144
USAA Auto Owner Trust, Series 2005-1, Class A3
3.90% due 07/15/2009		82,412		81,625
USAA Auto Owner Trust, Series 2005-3, Class A2
4.52% due 06/16/2008		149,093		148,697
USAA Auto Owner Trust, Series 2006-3, Class A4
5.36% due 06/15/2012		238,000		240,045
Volkswagen Auto Lease Trust,
Series 2006-A, Class A2
5.55% due 11/20/2008		295,000		295,738
Wachovia Auto Owner Trust, Series 2004-A, Class
A4
3.66% due 07/20/2010		562,000		552,903
Wachovia Auto Owner Trust, Series 2005-B, Class
A2
4.82% due 02/20/2009		277,113		276,420
Washington Mutual Master Note Trust,
Series 2006-M1A, Class M1
5.42% due 08/15/2013 (b)		540,000		540,000
WFS Financial Owner Trust,
Series 2003-1, Class A4
2.74% due 09/20/2010		44,360		44,006
WFS Financial Owner Trust,
Series 2003-3, Class A4
3.25% due 05/20/2011		193,575		190,672
WFS Financial Owner Trust,
Series 2003-4, Class A4
3.15% due 05/20/2011		72,434		71,314
WFS Financial Owner Trust,
Series 2004-1, Class A4
2.81% due 08/22/2011		141,584		138,495
WFS Financial Owner Trust,
Series 2005-3, Class A3A
4.25% due 06/17/2010		116,000		114,915

TOTAL ASSET BACKED SECURITIES
(Cost $18,471,274)			$	18,485,742


SHORT TERM INVESTMENTS - 12.71%
Federal Home Loan Mortgage Corp. Discount Notes
zero coupon due 06/26/2007	$	2,782,000	$	2,660,005
Rabobank USA Finance Corp.
5.27% due 09/01/2006		3,181,000		3,181,000
State Street Navigator Securities Lending
Prime Portfolio (c)		19,381,094		19,381,094

TOTAL SHORT TERM INVESTMENTS
(Cost $25,222,099)			$	25,222,099

Core Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 0.96%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$1,896,208 on 09/01/2006,
collateralized by $2,015,000
Federal Home Loan Mortgage
Corp., 4.125% due 02/24/2011
(valued at $1,934,400, including
interest) (c)***	$	1,896,000	$	1,896,000

TOTAL REPURCHASE AGREEMENTS
(Cost $1,896,000)			$	1,896,000

Total Investments (Core Bond Fund)
(Cost $237,250,392) - 120.03%			$	238,119,738
Liabilities in Excess of Other Assets - (20.03)%				(39,729,942)

TOTAL NET ASSETS - 100.00%			$	198,389,796



Core Equity Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 98.04%
Advertising - 1.76%
WPP Group PLC		861,400	$	10,487,033
Apparel & Textiles - 0.45%
NIKE, Inc., Class B		33,000		2,665,080
Building Materials & Construction - 0.56%
Masco Corp.		122,914		3,369,073
Cable and Television - 5.02%
DIRECTV Group, Inc. *		916,302		17,217,315
Time Warner, Inc.		764,900		12,712,638

				29,929,953
Computers & Business Equipment - 7.44%
Cisco Systems, Inc. *		381,500		8,389,185
Dell, Inc. *		423,100		9,540,905
Hewlett-Packard Company		269,900		9,867,544
International Business Machines Corp.		95,100		7,700,247
Seagate Technology *		397,726		8,849,403

				44,347,284
Electrical Utilities - 5.35%
The AES Corp. *		1,500,700		31,874,868
Financial Services - 12.02%
Capital One Financial Corp.		141,100		10,314,410
Citigroup, Inc.		335,500		16,556,925
Countrywide Financial Corp.		519,900		17,572,620
JPMorgan Chase & Company		596,200		27,222,492

				71,666,447
Healthcare Services - 7.20%
Health Net, Inc. *		315,144		13,176,171
UnitedHealth Group, Inc.		572,900		29,762,155

				42,938,326

The accompanying notes are an integral part of the financial statements. 206

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Core Equity Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Holdings Companies/Conglomerates - 1.18%
General Electric Company	206,600	$	7,036,796
Homebuilders - 4.25%
Beazer Homes USA, Inc.	66,808		2,692,362
Centex Corp.	190,210		9,691,200
Pulte Homes, Inc.	332,600		9,868,242
Ryland Group, Inc.	72,408		3,089,649

			25,341,453
Insurance - 5.94%
Aetna, Inc.	494,900		18,444,923
American International Group, Inc.	168,300		10,740,906
St. Paul Travelers Companies, Inc.	142,400		6,251,360

			35,437,189
Internet Retail - 10.97%
Amazon.com, Inc. *	748,600		23,079,338
eBay, Inc. *	573,900		15,988,854
Expedia, Inc. *	608,500		9,930,720
IAC/InterActiveCorp. *	575,400		16,387,392

			65,386,304
Internet Service Provider - 6.82%
Google, Inc., Class A *	63,800		24,150,214
Yahoo!, Inc. *	571,900		16,482,158

			40,632,372
Internet Software - 0.27%
Symantec Corp. *	86,000		1,603,040
Leisure Time - 1.68%
Electronic Arts, Inc. *	196,800		10,030,896
Manufacturing - 5.04%
Tyco International, Ltd.	1,148,300		30,028,045
Pharmaceuticals - 1.88%
Pfizer, Inc.	405,785		11,183,435
Photography - 2.61%
Eastman Kodak Company	730,848		15,545,137
Retail Trade - 5.88%
Home Depot, Inc.	365,300		12,526,137
Sears Holdings Corp. *	156,300		22,524,393

			35,050,530
Sanitary Services - 0.79%
Waste Management, Inc.	136,800		4,689,504
Software - 0.78%
CA, Inc.	197,300		4,650,361
Telephone - 10.15%
Qwest Communications International, Inc. *	3,503,900		30,869,359
Sprint Nextel Corp.	1,753,700		29,672,604

			60,541,963

TOTAL COMMON STOCKS (Cost $577,764,706)		$	584,435,089

Core Equity Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 2.47%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$14,738,617 on 9/1/2006,
collateralized by $14,980,000
Federal Home Loan Mortgage
Corp., 2.75% due 12/28/2006
(valued at $15,036,175, including
interest)	$	14,737,000	$	14,737,000

TOTAL REPURCHASE AGREEMENTS
(Cost $14,737,000)			$	14,737,000

Total Investments (Core Equity Fund)
(Cost $592,501,706) - 100.51%			$	599,172,089
Liabilities in Excess of Other Assets - (0.51)%				(3,032,638)

TOTAL NET ASSETS - 100.00%			$	596,139,451



Emerging Growth Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 98.30%
Advertising - 1.65%
Aquantive, Inc. *		114,300 $		2,834,640
Aerospace - 1.45%
ARGON ST, Inc. * (a)		96,800		2,489,696
Automobiles - 0.83%
Force Protection, Inc. *		223,600		1,419,860
Banking - 5.87%
Boston Private Financial Holdings, Inc. (a)		69,700		1,739,712
IBERIABANK Corp.		32,700		1,906,410
UCBH Holdings, Inc.		68,300		1,238,962
Umpqua Holdings Corp. (a)		108,190		2,961,160
Wintrust Financial Corp. (a)		44,295		2,228,482

				10,074,726
Biotechnology - 2.04%
Martek Biosciences Corp. * (a)		116,600		3,506,162
Building Materials & Construction - 1.71%
Corrections Corp. of America *		46,750		2,937,770
Buildings - 0.67%
Modtech Holdings, Inc. * (a)		214,700		1,155,086
Business Services - 5.73%
Access Integrated Technologies, Inc. * (a)		146,750		1,326,620
Barrett Business Services, Inc. *		97,150		1,971,173
Euronet Worldwide, Inc. * (a)		153,500		3,730,050
FTI Consulting, Inc. *		125,500		2,803,670

				9,831,513
Chemicals - 0.46%
American Vanguard Corp. (a)		52,000		782,600
Commercial Services - 2.20%
Color Kinetics, Inc. * (a)		115,750		1,927,238

The accompanying notes are an integral part of the financial statements. 207

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Emerging Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Commercial Services (continued)
Stantec, Inc. *	102,250	$	1,846,635

			3,773,873
Computers & Business Equipment - 4.59%
Lasercard Corp. * (a)	151,100		1,501,934
Stratasys, Inc. * (a)	92,550		2,211,020
Trident Microsystems, Inc. *	201,700		4,161,071

			7,874,025
Construction Materials - 1.16%
Simpson Manufacturing, Inc. (a)	75,750		1,996,013
Crude Petroleum & Natural Gas - 0.69%
Toreador Resources Corp. * (a)	56,050		1,183,216
Domestic Oil - 0.51%
Delta Petroleum Corp. * (a)	41,450		866,305
Drugs & Health Care - 2.01%
Healthextras, Inc. *	61,850		1,900,650
Matrixx Initiatives, Inc. * (a)	91,150		1,555,931

			3,456,581
Electronics - 4.34%
Measurement Specialties, Inc. *	96,200		1,937,468
Medis Technologies, Ltd. * (a)	160,350		3,211,810
Supertex, Inc. *	65,000		2,299,050

			7,448,328
Energy - 3.90%
Headwaters, Inc. * (a)	99,200		2,194,304
InterOil Corp. * (a)	108,000		1,715,040
KFx, Inc. * (a)	174,200		2,790,684

			6,700,028
Financial Services - 1.20%
Waddell & Reed Financial, Inc., Class A	88,650		2,058,453
Food & Beverages - 0.88%
Buffalo Wild Wings, Inc. * (a)	43,450		1,514,232
Healthcare Products - 12.91%
Adeza Biomedical Corp. *	157,950		2,680,412
Caliper Life Sciences, Inc. * (a)	210,350		1,098,027
Cyberonics, Inc. * (a)	101,800		1,657,304
Intralase Corp. * (a)	175,000		3,291,750
Kyphon, Inc. *	70,600		2,556,426
Nuvasive, Inc. *	118,200		2,430,192
ResMed, Inc. *	88,350		3,594,078
Somanetics Corp. * (a)	108,800		1,834,368
SonoSite, Inc. * (a)	95,350		3,025,455

			22,168,012
Healthcare Services - 0.26%
Nitromed, Inc. * (a)	150,300		438,876
Hotels & Restaurants - 2.14%
McCormick & Schmick's Seafood
Restaurants, Inc. *	101,550		2,012,721
Texas Roadhouse, Inc., Class A * (a)	137,500		1,661,000

			3,673,721

Emerging Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Household Products - 2.26%
iRobot Corp. * (a)	125,000	$	2,212,500
Select Comfort Corp. * (a)	84,325		1,673,851

			3,886,351
Industrial Machinery - 0.73%
Quixote Corp.	74,000		1,252,080
Insurance - 2.98%
Infinity Property & Casualty Corp.	70,200		2,664,090
ProAssurance Corp. *	28,700		1,443,610
United Fire & Casualty Company	35,900		1,004,482

			5,112,182
International Oil - 0.15%
ATP Oil & Gas Corp. *	6,600		258,060
Leisure Time - 4.01%
Bally Technologies, Inc. * (a)	146,700		2,309,058
Imax Corp. * (a)	352,050		1,605,348
Pinnacle Entertainment, Inc. *	55,000		1,417,900
Progressive Gaming International Corp. * (a)	210,050		1,552,269

			6,884,575
Manufacturing - 1.98%
Radyne Corp. *	67,150		820,573
Raven Industries, Inc. (a)	92,400		2,580,732

			3,401,305
Medical-Hospitals - 0.76%
EV3, Inc. * (a)	85,400		1,298,934
Office Furnishings & Supplies - 1.60%
Global Imaging Systems, Inc. *	125,200		2,745,636
Petroleum Services - 2.05%
Superior Energy Services, Inc. *	52,700		1,682,711
TETRA Technologies, Inc. *	66,250		1,842,413

			3,525,124
Pharmaceuticals - 2.66%
Atherogenics, Inc. *	84,850		1,187,900
Medicis Pharmaceutical Corp., Class A (a)	115,164		3,373,154

			4,561,054
Retail Trade - 2.22%
A.C. Moore Arts & Crafts, Inc. * (a)	115,050		2,045,589
Hibbett Sporting Goods, Inc. *	72,050		1,767,386

			3,812,975
Semiconductors - 6.09%
Actel Corp. *	129,000		2,002,080
FormFactor, Inc. *	102,650		4,953,888
Mattson Technology, Inc. *	238,000		1,863,540
Microsemi Corp. *	59,000		1,638,430

			10,457,938
Software - 7.55%
Allscripts Healthcare Solution, Inc. * (a)	118,100		2,404,516
Concur Technologies, Inc. * (a)	177,550		2,473,271
Faro Technologies, Inc. * (a)	138,800		2,444,268
Opsware, Inc. * (a)	450,200		3,173,910

The accompanying notes are an integral part of the financial statements. 208

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Emerging Growth Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Software (continued)
Progress Software Corp. *		96,974	$	2,455,382

				12,951,347
Telecommunications Equipment &
Services - 1.63%
Comtech Telecommunications Corp. * (a)		85,200		2,788,596
Trucking & Freight - 4.43%
Celadon Group, Inc. *		168,475		3,121,842
ID Systems, Inc. * (a)		112,100		2,490,862
Oshkosh Truck Corp.		38,600		1,995,620

				7,608,324

TOTAL COMMON STOCKS (Cost $184,076,657)			$	168,728,197


SHORT TERM INVESTMENTS - 24.11%
State Street Global Advisers Funds (c)	$	3,112,714	$	3,112,714
State Street Navigator Securities Lending
Prime Portfolio (c)		38,275,542		38,275,542

TOTAL SHORT TERM INVESTMENTS
(Cost $41,388,256)			$	41,388,256

Total Investments (Emerging Growth Fund)
(Cost $225,464,913) - 122.41%			$	210,116,453
Liabilities in Excess of Other Assets - (22.41)%				(38,461,766)

TOTAL NET ASSETS - 100.00%			$	171,654,687



Emerging Small Company Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 96.84%
Advertising - 1.74%
inVentiv Health, Inc. *		18,300	$	569,679
ValueClick, Inc. *		18,800		331,820

				901,499
Aerospace - 2.14%
BE Aerospace, Inc. *		31,300		746,818
HEICO Corp., Class A		13,400		362,872

				1,109,690
Apparel & Textiles - 2.10%
Carter's, Inc. *		19,100		441,210
Crocs, Inc. *		16,600		448,532
Volcom, Inc. *		8,500		198,815

				1,088,557
Auto Parts - 1.44%
LKQ Corp. *		36,000		747,720
Automobiles - 0.78%
Monro Muffler Brake, Inc.		12,500		402,875
Banking - 7.74%
BankAtlantic Bancorp, Inc., Class A		20,200		284,214
Capitol Bancorp, Ltd.		11,500		484,955

Emerging Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
Digital Insight Corp. *	14,000	$	364,140
East West Bancorp, Inc.	9,716		393,498
PrivateBancorp, Inc.	4,500		199,800
Signature Bank *	11,125		365,456
Sterling Financial Corp., Spokane	10,800		357,048
United Community Banks, Inc.	24,000		753,600
Virginia Commerce Bancorp, Inc. *	20,600		456,496
Wintrust Financial Corp.	7,000		352,170

			4,011,377
Biotechnology - 0.76%
Integra LifeSciences Holdings Corp. *	10,200		392,292
Building Materials & Construction - 1.28%
Beacon Roofing Supply, Inc. *	18,450		339,111
Williams Scotsman International, Inc. *	15,400		323,246

			662,357
Business Services - 2.55%
Euronet Worldwide, Inc. *	19,000		461,700
Labor Ready, Inc. *	28,500		488,205
Sotheby's Holdings, Inc., Class A	13,400		372,520

			1,322,425
Cable and Television - 0.79%
Central European Media Enterprises-A, Ltd. *	6,600		409,101
Chemicals - 0.76%
Airgas, Inc.	11,000		394,020
Coal - 0.87%
Foundation Coal Holdings, Inc.	12,500		449,000
Commercial Services - 0.76%
Pool Corp.	10,400		395,928
Computers & Business Equipment - 4.49%
Electronics for Imaging, Inc. *	17,800		410,112
Henry, Jack & Associates, Inc.	9,600		183,936
Micros Systems, Inc. *	12,987		621,558
Rackable Systems, Inc. *	14,800		410,848
Trident Microsystems, Inc. *	18,700		385,781
Witness Systems, Inc. *	19,200		312,000

			2,324,235
Crude Petroleum & Natural Gas - 1.61%
Arena Resources, Inc. *	11,400		440,040
GMX Resources, Inc. *	12,300		391,878

			831,918
Drugs & Health Care - 3.38%
Conor Medsystems, Inc. *	15,000		405,000
Healthextras, Inc. *	18,700		574,651
Illumina, Inc. *	7,000		235,760
Immucor, Inc. *	25,800		535,866

			1,751,277
Electrical Equipment - 1.00%
W.H. Brady Company, Class A	13,600		519,520

The accompanying notes are an integral part of the financial statements. 209

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Emerging Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electronics - 0.91%
Measurement Specialties, Inc. *	10,174	$	204,904
Supertex, Inc. *	7,500		265,275

			470,179
Energy - 0.51%
Evergreen Solar, Inc. *	26,000		264,680
Financial Services - 5.44%
Affiliated Managers Group, Inc. *	10,500		971,565
GFI Group, Inc. *	9,999		464,953
Heartland Payment Systems, Inc.	9,700		261,997
optionsXpress Holdings, Inc.	14,900		389,188
Portfolio Recovery Associates, Inc. *	6,500		258,180
SWS Group, Inc.	12,200		300,120
United Panam Financial Corp. *	10,000		170,700

			2,816,703
Food & Beverages - 1.43%
Hansen Natural Corp. *	17,600		484,352
Ruth's Chris Steak House, Inc. *	13,000		258,440

			742,792
Healthcare Products - 5.40%
American Medical Systems Holdings, Inc. *	26,500		465,340
Arthrocare Corp. *	8,000		364,880
DJO, Inc. *	2,650		102,211
Haemonetics Corp. *	13,900		647,462
PSS World Medical, Inc. *	23,500		455,900
Viasys Healthcare, Inc. *	23,000		609,960
Visicu, Inc. *	12,600		152,838

			2,798,591
Healthcare Services - 1.98%
Horizon Health Corp. *	12,000		164,280
The Advisory Board Company *	10,800		548,856
United Surgical Partners International, Inc. *	11,000		310,420

			1,023,556
Hotels & Restaurants - 2.05%
McCormick & Schmick's Seafood
Restaurants, Inc. *	15,800		313,156
Orient Express Hotels, Ltd.	9,631		322,446
Red Robin Gourmet Burgers, Inc. *	10,100		426,321

			1,061,923
Household Products - 1.27%
Central Garden & Pet Company *	15,000		657,450
Industrial Machinery - 3.49%
Actuant Corp., Class A	8,800		396,880
Energy Conversion Devices, Inc. *	9,100		318,955
Gardner Denver, Inc. *	16,700		600,699
H&E Equipment Services, Inc. *	8,600		224,202
Presstek, Inc. *	32,800		269,288

			1,810,024
Industrials - 1.29%
Harsco Corp.	8,400		668,304

Emerging Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance - 0.25%
Hub International, Ltd.	4,600	$	131,744
Internet Content - 0.90%
RightNow Technologies, Inc. *	30,533		468,987
Leisure Time - 1.14%
Life Time Fitness, Inc. *	13,200		593,076
Liquor - 1.23%
Central European Distribution Corp. *	27,750		639,083
Manufacturing - 1.05%
Coherent, Inc. *	12,039		436,534
Mettler-Toledo International, Inc. *	1,809		110,241

			546,775
Medical-Hospitals - 2.57%
Lifepoint Hospitals, Inc. *	7,600		258,780
Psychiatric Solutions, Inc. *	21,212		678,996
VCA Antech, Inc. *	11,182		396,067

			1,333,843
Metal & Metal Products - 0.69%
RBC Bearings, Inc. *	16,700		355,209
Mining - 0.34%
RTI International Metals, Inc. *	4,100		177,817
Mutual Funds - 3.41%
iShares Russell 2000 Growth Index Fund	24,500		1,765,225
Office Furnishings & Supplies - 0.76%
Knoll, Inc.	22,000		392,260
Petroleum Services - 4.29%
Basic Energy Services, Inc. *	13,600		388,960
Superior Energy Services, Inc. *	16,959		541,501
Superior Well Services, Inc. *	13,474		290,095
Universal Compression Holdings, Inc. *	9,700		527,971
World Fuel Services Corp.	13,100		472,124

			2,220,651
Pharmaceuticals - 1.85%
Adams Respiratory Therapeutics, Inc. *	8,600		350,880
Adolor Corp. *	12,800		319,360
Alkermes, Inc. *	17,500		286,125

			956,365
Real Estate - 5.37%
BioMed Realty Trust, Inc., REIT	16,900		526,266
Innkeepers USA Trust, REIT	38,219		632,906
Jones Lang LaSalle, Inc., REIT	6,684		556,510
Sunstone Hotel Investors, Inc., REIT	24,000		717,600
Trammell Crow Company, REIT *	10,100		347,642

			2,780,924
Retail Grocery - 0.91%
United Natural Foods, Inc. *	16,200		470,610
Retail Trade - 3.04%
Childrens Place Retail Stores, Inc. *	8,900		515,933
Guitar Center, Inc. *	9,600		363,840

The accompanying notes are an integral part of the financial statements. 210

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Emerging Small Company Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Retail Trade (continued)
Hibbett Sporting Goods, Inc. *		16,000	$	392,480
The Men's Wearhouse, Inc.		8,500		301,325

				1,573,578
Semiconductors - 2.99%
Advanced Analogic Technologies, Inc. *		22,000		209,440
Microsemi Corp. *		5,500		152,735
ON Semiconductor Corp. *		34,500		207,345
PMC-Sierra, Inc. *		67,500		461,700
Varian Semiconductor Equipment Associates,
Inc. *		14,643		517,044

				1,548,264
Software - 2.46%
Eclipsys Corp. *		11,000		188,100
Transaction Systems Architects, Inc., Class A *		24,000		796,080
Ultimate Software Group, Inc. *		12,900		291,540

				1,275,720
Telecommunications Equipment &
Services - 1.72%
Aeroflex, Inc. *		40,000		416,800
Finisar Corp. *		63,000		233,730
NeuStar, Inc., Class A *		8,600		242,692

				893,222
Transportation - 0.92%
UTI Worldwide, Inc.		20,800		479,440
Trucking & Freight - 2.99%
Knight Transportation, Inc.		24,981		429,423
Landstar Systems, Inc.		11,800		503,860
Old Dominion Freight Lines, Inc. *		19,300		616,056

				1,549,339

TOTAL COMMON STOCKS (Cost $54,155,049)			$	50,180,125


REPURCHASE AGREEMENTS - 4.81%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$2,495,274 on 09/01/2006,
collateralized by $2,485,000
Federal Home Loan Mortgage
Corp., 6.065% due 05/16/2016
(valued at $2,547,721, including
interest) (c)	$	2,495,000	$	2,495,000

TOTAL REPURCHASE AGREEMENTS
(Cost $2,495,000)			$	2,495,000

Total Investments (Emerging Small Company Fund)
(Cost $56,650,049) - 101.65%			$	52,675,125
Liabilities in Excess of Other Assets - (1.65)%				(856,340)

TOTAL NET ASSETS - 100.00%			$	51,818,785

Equity-Income Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 95.02%
Aerospace - 1.11%
Lockheed Martin Corp.	27,000	$	2,230,200
Raytheon Company	121,200		5,721,852

			7,952,052
Aluminum - 0.54%
Alcoa, Inc.	136,500		3,902,535
Auto Parts - 0.51%
Genuine Parts Company	88,350		3,651,506
Automobiles - 0.23%
Ford Motor Company (a)	194,500		1,627,965
Banking - 4.01%
Bank of America Corp.	118,546		6,101,563
Bank of Ireland	39,800		753,529
Fifth Third Bancorp.	210,562		8,283,509
Mercantile Bankshares Corp.	59,425		2,194,565
National City Corp.	75,500		2,610,790
Northern Trust Corp.	3,000		167,970
SunTrust Banks, Inc.	76,300		5,829,320
Wells Fargo Company	82,000		2,849,500

			28,790,746
Biotechnology - 0.37%
MedImmune, Inc. *	96,300		2,661,732
Broadcasting - 0.74%
CBS Corp., Class B	186,800		5,333,140
Business Services - 0.55%
H & R Block, Inc.	188,300		3,959,949
Cable and Television - 2.85%
Comcast Corp., Class A *	141,161		4,940,635
EchoStar Communications Corp., Class A *	80,300		2,549,525
Time Warner, Inc.	501,700		8,338,254
Viacom, Inc. *	128,400		4,660,920

			20,489,334
Cellular Communications - 0.54%
Motorola, Inc.	165,700		3,874,066
Chemicals - 1.23%
Chemtura Corp.	149,624		1,300,233
E.I. Du Pont De Nemours & Company	171,400		6,850,858
Hercules, Inc. *	46,200		720,720

			8,871,811
Computers & Business Equipment - 2.57%
Cisco Systems, Inc. *	267,500		5,882,325
Dell, Inc. *	201,200		4,537,060
International Business Machines Corp.	99,900		8,088,903

			18,508,288
Construction Materials - 0.60%
Vulcan Materials Company (a)	55,200		4,339,272
Cosmetics & Toiletries - 3.42%
Avon Products, Inc.	191,800		5,506,578
Colgate-Palmolive Company	149,500		8,949,070
International Flavors & Fragrances, Inc.	144,700		5,754,719

The accompanying notes are an integral part of the financial statements. 211

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Equity-Income Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Cosmetics & Toiletries (continued)
Kimberly-Clark Corp.	69,400	$	4,406,900

			24,617,267
Domestic Oil - 0.63%
Murphy Oil Corp.	92,300		4,514,393
Drugs & Health Care - 1.12%
Wyeth	166,000		8,084,200
Electrical Equipment - 0.47%
Cooper Industries, Ltd., Class A	41,200		3,373,456
Electrical Utilities - 2.13%
Entergy Corp.	86,700		6,732,255
FirstEnergy Corp.	75,675		4,318,016
Pinnacle West Capital Corp. (a)	60,300		2,770,182
TECO Energy, Inc.	94,900		1,496,573

			15,317,026
Electronics - 0.63%
Sony Corp.	104,400		4,519,211
Energy - 2.29%
Duke Energy Corp.	243,800		7,314,000
Progress Energy, Inc.	110,300		4,889,599
Xcel Energy, Inc.	204,900		4,261,920

			16,465,519
Financial Services - 8.00%
Charles Schwab Corp.	401,400		6,546,834
Citigroup, Inc.	70,596		3,483,913
Federal National Mortgage Association	63,000		3,316,950
Janus Capital Group, Inc.	59,200		1,052,576
JPMorgan Chase & Company	398,714		18,205,281
Mellon Financial Corp.	215,400		8,019,342
Morgan Stanley	163,600		10,763,244
State Street Corp. (c)	98,800		6,105,840

			57,493,980
Food & Beverages - 3.58%
Campbell Soup Company	115,200		4,328,064
General Mills, Inc.	120,800		6,550,984
McCormick & Company, Inc.	88,300		3,215,886
Sara Lee Corp.	81,300		1,352,019
Sysco Corp.	63,200		1,983,848
The Coca-Cola Company	184,600		8,271,926

			25,702,727
Gas & Pipeline Utilities - 0.93%
NiSource, Inc.	316,400		6,698,188
Healthcare Products - 2.19%
Baxter International, Inc.	102,400		4,544,512
Boston Scientific Corp. *	174,300		3,039,792
Johnson & Johnson	126,300		8,166,558

			15,750,862
Holdings Companies/Conglomerates - 2.84%
General Electric Company	599,300		20,412,158

Equity-Income Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Homebuilders - 0.33%
D.R. Horton, Inc. (a)	108,600	$	2,381,598
Household Products - 1.54%
Fortune Brands, Inc.	56,400		4,094,640
Newell Rubbermaid, Inc.	259,100		6,993,109

			11,087,749
Industrial Machinery - 1.13%
Deere & Company	54,500		4,256,450
Pall Corp.	141,800		3,859,796

			8,116,246
Insurance - 5.50%
American International Group, Inc.	143,265		9,143,172
Chubb Corp.	64,200		3,220,272
Lincoln National Corp.	108,798		6,604,039
Marsh & McLennan Companies, Inc.	399,700		10,456,152
St. Paul Travelers Companies, Inc.	135,449		5,946,211
UnumProvident Corp.	220,600		4,180,370

			39,550,216
International Oil - 5.17%
Anadarko Petroleum Corp.	110,400		5,178,864
ChevronTexaco Corp.	209,260		13,476,344
Hess Corp.	164,000		7,507,920
Royal Dutch Shell PLC, ADR	159,300		10,982,142

			37,145,270
Leisure Time - 0.92%
Walt Disney Company	222,800		6,606,020
Liquor - 1.20%
Anheuser-Busch Companies, Inc.	174,600		8,621,748
Manufacturing - 3.15%
3M Company	82,400		5,908,080
Eaton Corp.	38,500		2,560,250
Honeywell International, Inc.	231,800		8,975,296
Tyco International, Ltd.	200,000		5,230,000

			22,673,626
Newspapers - 1.61%
Dow Jones & Company, Inc. (a)	143,700		5,176,074
The New York Times Company, Class A (a)	283,800		6,391,176

			11,567,250
Office Furnishings & Supplies - 0.88%
Avery Dennison Corp.	101,600		6,293,104
Paper - 1.98%
International Paper Company	325,925		11,332,412
MeadWestvaco Corp.	112,400		2,871,820

			14,204,232
Petroleum Services - 3.56%
BP PLC, SADR	94,892		6,457,401
Exxon Mobil Corp.	205,424		13,901,042
Schlumberger, Ltd.	85,600		5,247,280

			25,605,723

The accompanying notes are an integral part of the financial statements. 212

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Equity-Income Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Pharmaceuticals - 5.89%
Abbott Laboratories	129,400	$	6,301,780
Bristol-Myers Squibb Company	176,600		3,841,050
Eli Lilly & Company	151,600		8,478,988
Merck & Company, Inc.	279,000		11,313,450
Pfizer, Inc.	333,100		9,180,236
Schering-Plough Corp.	152,500		3,194,875

			42,310,379
Photography - 0.62%
Eastman Kodak Company (a)	208,400		4,432,668
Publishing - 1.28%
Tribune Company (a)	294,400		9,188,224
Railroads & Equipment - 1.66%
Norfolk Southern Corp.	72,300		3,089,379
Union Pacific Corp.	110,300		8,862,605

			11,951,984
Real Estate - 0.38%
Simon Property Group, Inc., REIT	32,100		2,721,759
Retail Trade - 2.16%
Home Depot, Inc.	183,300		6,285,357
RadioShack Corp. (a)	115,600		2,087,736
Wal-Mart Stores, Inc.	160,600		7,182,032

			15,555,125
Sanitary Services - 0.77%
Waste Management, Inc.	160,522		5,502,694
Semiconductors - 1.08%
Analog Devices, Inc.	142,400		4,363,136
Intel Corp.	175,600		3,431,224

			7,794,360
Software - 1.66%
Microsoft Corp.	465,400		11,956,126
Telecommunications Equipment &
Services - 1.55%
Lucent Technologies, Inc. * (a)	883,600		2,058,788
Nokia Oyj, SADR	296,500		6,190,920
Telus Corp., Non Voting Shares	34,400		1,635,376
Telus Corp.	25,400		1,245,154

			11,130,238
Telephone - 5.50%
ALLTEL Corp.	109,300		5,925,153
AT&T, Inc.	401,873		12,510,306
Qwest Communications International, Inc. *	901,700		7,943,977
Sprint Nextel Corp.	283,700		4,800,204
Verizon Communications, Inc.	194,752		6,851,375
Windstream Corp. *	113,008		1,491,706

			39,522,721
Tobacco - 0.50%
UST, Inc. (a)	67,400		3,562,764

Equity-Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Toys, Amusements & Sporting Goods - 0.92%
Mattel, Inc.		352,200	$	6,635,448

TOTAL COMMON STOCKS (Cost $626,745,392)			$	683,028,655


CORPORATE BONDS - 0.33%
Telecommunications Equipment &
Services - 0.33%
Lucent Technologies, Inc.
8.00% due 08/01/2031 (a)	$	2,366,000		2,366,686

TOTAL CORPORATE BONDS (Cost $2,444,494)			$	2,366,686


SHORT TERM INVESTMENTS - 9.50%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	41,370,005	$	41,370,005
T. Rowe Price Reserve Investment Fund (c)		26,919,905		26,919,905

TOTAL SHORT TERM INVESTMENTS
(Cost $68,289,910)			$	68,289,910


REPURCHASE AGREEMENTS - 0.49%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$3,515,386 on 9/1/2006,
collateralized by $3,530,000
Federal Home Loan Bank, 5.125%
due 06/13/2008 (valued at
$3,587,363, including interest) (c)	$	3,515,000	$	3,515,000

TOTAL REPURCHASE AGREEMENTS
(Cost $3,515,000)			$	3,515,000

Total Investments (Equity-Income Fund)
(Cost $700,994,796) - 105.34%			$	757,200,251
Liabilities in Excess of Other Assets - (5.34)%				(38,403,258)

TOTAL NET ASSETS - 100.00%			$	718,796,993



Fundamental Value Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 95.31%
Advertising - 0.25%
WPP Group PLC, SADR		30,951	$	1,879,035
Banking - 6.50%
Commerce Bancorp, Inc. (a)		139,300		4,640,083
Golden West Financial Corp.		325,999		24,609,665
Wells Fargo Company		582,266		20,233,743

				49,483,491
Broadcasting - 1.94%
Liberty Media Holding Corp.-Capital, Series A *		24,505		2,115,517
News Corp.		667,300		12,698,719

				14,814,236

The accompanying notes are an integral part of the financial statements. 213

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Fundamental Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Business Services - 3.79%
Dun & Bradstreet Corp. *	17,095	$	1,201,949
H & R Block, Inc.	373,623		7,857,292
Iron Mountain, Inc. * (a)	244,742		10,031,975
Moody's Corp.	159,801		9,776,625

			28,867,841
Cable and Television - 3.65%
Comcast Corp.-Special Class A * (a)	677,657		23,657,006
NTL, Inc.	155,877		4,129,182

			27,786,188
Colleges & Universities - 0.36%
Apollo Group, Inc., Class A * (a)	54,600		2,741,466
Computers & Business Equipment - 1.25%
Dell, Inc. *	209,500		4,724,225
Hewlett-Packard Company	130,984		4,788,775

			9,513,000
Construction Materials - 1.38%
Martin Marietta Materials, Inc.	65,479		5,392,850
Vulcan Materials Company (a)	65,170		5,123,014

			10,515,864
Containers & Glass - 1.81%
Sealed Air Corp. (a)	265,604		13,776,879
Cosmetics & Toiletries - 1.48%
Avon Products, Inc.	98,312		2,822,537
Procter & Gamble Company	136,500		8,449,350

			11,271,887
Crude Petroleum & Natural Gas - 6.60%
Devon Energy Corp.	268,409		16,772,879
EOG Resources, Inc.	224,788		14,570,758
Occidental Petroleum Corp.	370,382		18,885,778

			50,229,415
Financial Services - 11.33%
Ameriprise Financial, Inc.	175,913		8,044,502
Citigroup, Inc.	337,119		16,636,823
HSBC Holdings PLC	1,243,991		22,551,630
JPMorgan Chase & Company	717,282		32,751,096
Morgan Stanley	74,475		4,899,710
State Street Corp. (c)	22,175		1,370,415

			86,254,176
Food & Beverages - 1.88%
Diageo PLC, SADR	130,581		9,336,541
Hershey Company (a)	92,083		4,968,799

			14,305,340
Healthcare Services - 2.91%
Cardinal Health, Inc.	113,552		7,655,676
Caremark Rx, Inc.	186,471		10,804,130
HCA, Inc.	75,451		3,721,243

			22,181,049
Holdings Companies/Conglomerates - 5.93%
Berkshire Hathaway, Inc., Class A * (a)	262		25,177,414

Fundamental Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Holdings Companies/Conglomerates
(continued)
China Merchants Holdings
International Company, Ltd.	1,361,506	$	3,956,569
Loews Corp. (a)	415,911		16,004,255

			45,138,238
Household Products - 0.20%
Hunter Douglas NV	21,840		1,522,666
Industrials - 0.24%
Cosco Pacific, Ltd.	833,715		1,867,482
Insurance - 9.11%
American International Group, Inc.	519,643		33,163,616
Aon Corp.	148,808		5,144,293
Chubb Corp.	42,104		2,111,937
Markel Corp. *	1,247		453,072
Principal Financial Group, Inc.	43,042		2,291,556
Progressive Corp.	731,796		17,994,864
Sun Life Financial, Inc.	28,271		1,165,048
Transatlantic Holdings, Inc. (a)	114,212		7,014,901

			69,339,287
International Oil - 4.24%
ConocoPhillips	508,850		32,276,355
Internet Retail - 0.87%
Amazon.com, Inc. * (a)	140,200		4,322,366
Expedia, Inc. * (a)	51,077		833,577
IAC/InterActiveCorp. * (a)	51,777		1,474,609

			6,630,552
Internet Service Provider - 0.31%
Liberty Media Holding Corp.-Interactive A *	124,125		2,365,822
Liquor - 0.73%
Heineken Holding NV	138,125		5,534,132
Manufacturing - 5.83%
Harley-Davidson, Inc. (a)	234,232		13,704,914
Tyco International, Ltd.	1,174,788		30,720,706

			44,425,620
Mining - 0.41%
BHP Billiton PLC	85,117		1,620,758
Rio Tinto PLC	30,200		1,526,393

			3,147,151
Petroleum Services - 0.73%
Transocean, Inc. *	83,775		5,591,981
Publishing - 1.03%
Gannett Company, Inc.	34,618		1,968,034
Lagardere S.C.A.	80,087		5,860,214

			7,828,248
Retail Trade - 6.73%
Bed Bath & Beyond, Inc. *	115,500		3,895,815
CarMax, Inc. * (a)	45,800		1,726,202
Costco Wholesale Corp.	580,848		27,177,878
Lowe's Companies, Inc.	133,300		3,607,098

The accompanying notes are an integral part of the financial statements. 214

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Fundamental Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Retail Trade (continued)
Wal-Mart Stores, Inc.		331,195	$	14,811,040

				51,218,033
Software - 2.08%
Microsoft Corp.		617,026		15,851,398
Telecommunications Equipment &
Services - 0.70%
Nokia Oyj, SADR		94,986		1,983,308
SK Telecom Company, Ltd., ADR		152,339		3,336,224

				5,319,532
Telephone - 1.08%
Sprint Nextel Corp.		486,800		8,236,656
Tobacco - 4.96%
Altria Group, Inc.		451,903		37,747,458
Travel Services - 4.25%
American Express Company		616,065		32,368,055
Trucking & Freight - 0.75%
Kuehne & Nagel International AG		32,750		2,297,570
United Parcel Service, Inc., Class B		49,142		3,442,397

				5,739,967

TOTAL COMMON STOCKS (Cost $680,017,725)			$	725,768,500


SHORT TERM INVESTMENTS - 7.67%
Rabobank USA Finance Corp.
5.27% due 09/01/2006	$	35,453,000	$	35,453,000
State Street Navigator Securities Lending
Prime Portfolio (c)		22,927,961		22,927,961

TOTAL SHORT TERM INVESTMENTS
(Cost $58,380,961)			$	58,380,961

Total Investments (Fundamental Value Fund)
(Cost $738,398,686) - 102.98%			$	784,149,461
Liabilities in Excess of Other Assets - (2.98)%				(22,725,708)

TOTAL NET ASSETS - 100.00%			$	761,423,753



Global Bond Fund
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 1.94%
Treasury Inflation Protected
Securities (d) - 0.74%
0.875% due 04/15/2010	$	750,162	$	712,654
2.00% due 01/15/2026 (a)		102,222		98,473
3.375% due 01/15/2007 ***		3,585,596		3,584,054

				4,395,181
U.S. Treasury Bonds - 1.20%
7.875% due 02/15/2021 (a)***		5,500,000		7,156,875

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $11,526,420)			$	11,552,056

Global Bond Fund (continued)
			Shares or
			Principal
			Amount		Value


U.S. GOVERNMENT AGENCY OBLIGATIONS - 5.15%
Federal National Mortgage
Association - 5.15%
5.482% due 10/01/2044 (b)***		$	1,916,062	$	1,935,852
5.50% TBA **			27,600,000		27,082,500
6.232% due 11/01/2035 (b)***			1,550,554		1,597,306

					30,615,658

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $30,343,208)				$	30,615,658


FOREIGN GOVERNMENT OBLIGATIONS - 26.87%
France - 3.16%
Government of France
5.50% due 04/25/2010 ***	EUR		13,800,000		18,807,281
Germany - 16.74%
Federal Republic of Germany
zero coupon due 11/23/2006			1,000,000		12,793
2.50% due 03/23/2007			15,000,000		19,096,606
4.25% due 01/04/2014 ***			4,800,000		6,355,241
5.00% due 01/04/2012 ***			5,100,000		6,953,322
5.25% due 07/04/2010 ***			13,400,000		18,156,154
5.50% due 01/04/2031 ***			18,200,000		28,521,835
6.50% due 07/04/2027 ***			11,900,000		20,509,197

					99,605,148
Japan - 6.28%
Government of Japan
1.00% due 06/10/2016 ***	JPY		562,800,000		4,805,105
1.50% due 03/20/2015 ***			900,000,000		7,634,827
1.50% due 03/20/2011 ***			980,000,000		8,519,741
2.40% due 03/20/2034 ***			600,000,000		5,099,226
2.50% due 09/20/2035 ***			1,300,000,000		11,293,799

					37,352,698
Netherlands - 0.69%
Kingdom of Netherlands
3.75% due 07/15/2014 ***	EUR		3,200,000		4,102,909

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $157,618,841)				$	159,868,036


CORPORATE BONDS - 9.95%
Cayman Islands - 1.05%
MUFG Capital Finance 1, Ltd.
6.346% due 07/29/2049 (b)***		$	1,700,000		1,701,712
MUFG Capital Finance 2
4.85% due 12/31/2049 (b)***	EUR		2,500,000		3,128,995
Transocean, Inc.
5.5906% due 09/05/2008		$	1,400,000		1,399,689

					6,230,396
Japan - 0.70%
Bank of Tokyo-Mitsubishi UFJ, Ltd., Series EMTN
3.50% due 12/16/2015 (b)***	EUR		600,000		748,225
Sumitomo Mitsui Banking Corp., Series EMTN
1.245% due 12/01/2049 (b)	JPY		300,000,000		2,576,030
1.266% due 12/31/2049			100,000,000		858,719

					4,182,974

The accompanying notes are an integral part of the financial statements. 215

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Luxembourg - 0.10%
VTB Capital SA for Vneshtorgbank, Series 144A
6.1744% due 09/21/2007 (b)***	$	600,000	$	600,150
Netherlands - 0.50%
Rabobank Nederland
5.5269% due 01/15/2009 (b)***		2,500,000		2,500,147
Siemens Financieringsmaatschappij NV ,
Series 144A
5.466% due 08/14/2009 (b)***		500,000		499,471

				2,999,618

Spain - 0.42%
Santander US Debt SA Unipersonal, Series 144A
5.54% due 02/06/2009 (b)***		2,500,000		2,502,022
United Kingdom - 0.44%
Royal Bank of Scotland Group PLC, Series 144A
5.4244% due 12/21/2007 (b)***		1,200,000		1,200,786
Vodafone Group, PLC
5.56% due 06/29/2007 (b)***		1,400,000		1,399,885

				2,600,671

United States - 6.74%
American Express Credit Corp., Series MTN
5.39% due 05/18/2009 (b)***		1,400,000		1,399,992
Atlantic & Western Re, Ltd., Series A
11.5081% due 01/09/2007 (b)		1,200,000		1,180,475
BellSouth Corp.
5.58% due 08/15/2008 (b)***		1,400,000		1,400,053
Charter One Bank N.A., Series BKNT
5.54% due 04/24/2009 (b)***		3,250,000		3,251,196
Cisco Systems, Inc.
5.4794% due 02/20/2009 (b)***		2,600,000		2,604,238
CIT Group, Inc., Series MTN
5.4625% due 02/21/2008 (b)***		1,100,000		1,100,878
Citigroup, Inc.
5.52% due 12/26/2008 (b)***		1,500,000		1,500,702
5.525% due 01/30/2009 (b)***		3,000,000		3,000,834
CMS Energy Corp.
7.50% due 01/15/2009 (a)***		800,000		822,000
8.90% due 07/15/2008 ***		400,000		418,000
9.875% due 10/15/2007 ***		1,340,000		1,395,275
Countrywide Bank N.A., Series CD
5.36% due 08/16/2007 (b)***		2,600,000		2,599,740
DaimlerChrysler N.A. Holding Corp.
5.87% due 09/10/2007 (b)***		1,500,000		1,504,469
Dominion Resources, Inc., Series D
5.79% due 09/28/2007 (b)***		1,500,000		1,501,275
Echostar DBS Corp.
5.75% due 10/01/2008 ***		100,000		99,000
El Paso Corp.
7.625% due 08/16/2007 (a)***		100,000		101,250
General Electric Capital Corp., Series MTN
5.57% due 01/20/2010 (b)***		2,600,000		2,600,988
Genworth Global Funding Trusts
5.3894% due 02/10/2009 (b)***		2,600,000		2,601,596
Georgia Pacific Corp.
7.345% due 12/20/2012 (b)*** (f)		995,000		996,641

Global Bond Fund (continued)
			Shares or
			Principal
			Amount		Value


CORPORATE BONDS (continued)
United States (continued)
HSBC Finance Corp., Series MTN
5.5038% due 06/19/2009 (a)(b)***		$	2,800,000	$	2,801,756
Merrill Lynch & Company, Inc., Series MTN
5.4919% due 08/14/2009 (b)***			300,000		299,941
Oracle Corp. and Ozark Holding, Inc.
5.73% due 01/13/2009 (b)***			1,300,000		1,301,507
Reynolds American, Inc.
7.3125% due 05/11/2012 (b)(f)			1,000,000		1,005,469
Shackleton B Event Linked Loan
13.467% due 08/01/2008 (b)(f)			1,000,000		1,002,197
Shackleton C Event Linked Loan
12.967% due 08/01/2008 (b)(f)			1,000,000		992,175
Shackleton Re Ltd., Series 144A
13.488% due 02/07/2008 (b)			1,000,000		1,001,350
US Bancorp
5.3581% due 04/28/2009 (b)***			1,600,000		1,600,141

					40,083,138


TOTAL CORPORATE BONDS (Cost $59,057,313)				$	59,198,969


MUNICIPAL BONDS - 0.07%
Illinois - 0.05%
City of Chicago, Illinois
4.75% due 01/01/2030 ***			300,000		305,412
New York - 0.02%
New York City Municipal Water Finance Authority
4.75% due 06/15/2038 ***			130,000		135,767

TOTAL MUNICIPAL BONDS (Cost $437,379)				$	441,179


COLLATERALIZED MORTGAGE
OBLIGATIONS - 18.13%
Ireland - 0.17%
Paris Residential Funding PLC, Series 1X , Class A
2.51% due 07/25/2011 (b)***	EUR		770,975		987,551
Netherlands - 1.25%
Atomium Mortgage Finance BV,
Series 2003-I , Class A
2.314% due 07/01/2034 (b)***			1,107,700		1,418,442
Delphinus BV, Series 2001-II, Class A1
3.545% due 11/28/2031 (b)***			2,000,000		2,697,427
Delphinus BV, Series 2003-I, Class A1
2.41% due 04/25/2093 (b)***			1,000,000		1,286,286
Dutch Mortgage Portfolio Loans, BV,
Series III, Class A
3.484% due 11/20/2035 (b)***			1,602,204		2,058,673

					7,460,828

United States - 16.71%
American Home Mortgage Investment Trust,
Series 2004-3 , Class 5A
4.29% due 10/25/2034 (b)***		$	887,602		868,441
Banc of America Commercial Mortgage, Inc.,
Series 2002-2 , Class A2
4.772% due 07/11/2043 ***			2,500,000		2,470,402

The accompanying notes are an integral part of the financial statements. 216

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
United States (continued)
Banc of America Funding Corp.,
Series 2006-A, Class 1A1
4.6202% due 02/20/2036 (b)***	$	2,344,057	$	2,325,666
Banc of America Mortgage Securities,
Series 2004-4 , Class 1A9
5.00% due 05/25/2034 ***		2,041,367		2,006,094
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-9 , Class A1
4.625% due 10/25/2035 (b)***		4,125,880		4,010,113
Bear Stearns ALT-A Trust
5.84% due 10/25/2036		2,900,000		2,902,266
Bella Vista Mortgage Trust,
Series 2005-2, Class 2A1
5.575% due 05/20/2045 (b)***		2,138,881		2,145,962
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-11, Class 1A1
4.90% due 12/25/2035 (b)***		799,834		804,475
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-11, Class A2A
4.70% due 12/25/2035 ***		2,877,613		2,823,459
Commercial Mortgage Pass Through
Certificates, Series 2006-CN2A, Class A2FL
5.278% due 02/05/2019 (b)***		2,600,000		2,605,147
Countrywide Alternative Loan Trust,
Series 2005-11CB, Class 2A8
4.50% due 06/25/2035 ***		2,145,171		2,111,552
Countrywide Alternative Loan Trust,
Series 2005-81, Class A1
5.6044% due 02/25/2037 (b)***		5,968,869		5,992,804
Countrywide Alternative Loan Trust,
Series 2006-OA1, Class 2A1
5.535% due 03/20/2046 (b)***		2,412,163		2,413,409
Countrywide Home Loan Mortgage
Pass Through Trust, Series 2005-HYB9 ,
Class 5A1
5.25% due 02/20/2036 (b)***		963,447		959,380
Countrywide Home Loan Mortgage
Pass Through Trust, Series 2005-R2,
Class 1AF1
5.6644% due 06/25/2035 (b)***		227,229		226,906
Countrywide Home Loans,
Series 2004-12, Class 14A2
5.6044% due 08/25/2034 (b)***		302,495		302,574
Countrywide Home Loans,
Series 2004-25, Class 1A1
5.6544% due 02/25/2035 (b)***		693,333		695,925
Countrywide Home Loans,
Series 2004-25, Class 2A1
5.6644% due 02/25/2035 (b)***		810,920		814,259
Countrywide Home Loans,
Series 2005-HYB9, Class 3A2A
5.25% due 02/20/2036 (b)***		985,749		980,043
Credit Suisse First Boston Mortgage
Securities Corp., Series 2005-CN2A , Class A1S
5.55% due 11/15/2019 (b)***		520,543		520,857

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
United States (continued)
CSAB Mortgage Backed Trust,
Series 2006-1, Class A1A
5.4244% due 06/25/2036 (b)***	$	1,155,832	$	1,156,394
Fannie Mae REMICS, Series 2006-16, Class FC
5.685% due 03/25/2036 (b)***		2,846,182		2,846,772
Federal Home Loan Mortgage Corp.,
Series 2004-2770 , Class YW
4.00% due 06/15/2022 ***		1,971,179		1,942,083
Federal Home Loan Mortgage Corp.,
Series 2004-2895 , Class F
5.68% due 06/15/2031 (b)***		903,802		904,508
Federal Home Loan Mortgage Corp.,
Series 2844 , Class PR
5.00% due 09/15/2017 ***		457,540		455,509
Federal Home Loan Mortgage Corp.,
Series T-63, Class 1A1
5.482% due 02/25/2045 (b)***		746,847		742,849
Federal National Mortgage Association
Grantor Trust, Series 2005-T4, Class A1B
5.4144% due 09/25/2035 (b)***		1,200,000		1,200,470
Federal National Mortgage Association,
Series 2003-W6, Class F
5.6744% due 09/25/2042 (b)***		1,081,455		1,086,784
Federal National Mortgage Association,
Series 2004-W2 , Class 5AF
5.6744% due 03/25/2044 (b)***		952,676		953,266
Federal National Mortgage Association,
Series 2005-120, Class NF
5.4244% due 01/25/2021 (b)***		1,108,424		1,105,646
Federal National Mortgage Association,
Series 2006-15, Class FC
5.4544% due 03/25/2036 (b)***		2,567,184		2,569,862
Federal National Mortgage Association,
Series 2006-5, Class 3A2
4.6798% due 05/25/2035 (b)***		1,200,000		1,178,218
First Republic Mortgage Loan Trust,
Series 2001-FRB1 , Class A
5.68% due 11/15/2031 (b)***		682,364		685,298
Fremont Home Loan Trust,
Series 2006-1 , Class 2A1
5.3844% due 04/25/2036 (b)***		1,687,897		1,688,534
GMAC Mortgage Corp Loan Trust,
Series 2004-J4 , Class A1
5.50% due 09/25/2034 ***		1,332,210		1,319,458
GS Mortgage Securities Corp.,
Series 2003-1 , Class A2
6.0244% due 01/25/2032 (b)***		836,704		844,835
Harborview Mortgage Loan Trust,
Series 2006-1, Class 2A1A
5.565% due 03/19/2037 (b)***		2,456,026		2,459,373
LB-UBS Commercial Mortgage Trust,
Series 2003-C1 , Class A2
3.323% due 03/15/2027 ***		4,420,000		4,294,461
Lehman Brothers Floating Rate Commercial
Mortgage Trust, Series 2006-LLFA , Class A1
5.4056% due 09/15/2021 (b)***		3,000,000		3,004,707

The accompanying notes are an integral part of the financial statements. 217

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
United States (continued)
Lehman XS Trust, Series 2006-4N, Class A1A
5.4044% due 04/25/2046 (b)***	$	2,427,435	$	2,427,152
Mellon Residential Funding Corp.,
Series 2000-TBC3, Class A1
5.77% due 12/15/2030 (b)***		1,633,751		1,639,006
Merrill Lynch Mortgage Trust,
Series 2004-BPC1 , Class A1
3.585% due 10/12/2041 ***		1,006,275		982,263
MLCC Mortgage Investors, Inc.,
Series 2003-C , Class A1
5.6544% due 06/25/2028 (b)***		1,680,347		1,687,625
Residential Accredit Loans, Inc.,
Series 2006-QO3 , Class A1
5.5344% due 04/25/2046 (b)***		2,660,904		2,660,276
Sequoia Mortgage Trust, Series 5, Class A
5.675% due 10/19/2026 (b)***		539,713		540,366
Structured Adjustable Rate Mortgage Loan Trust,
Series 2004-1, Class 4A2
4.58% due 02/25/2034 (b)***		1,727,073		1,709,182
Structured Adjustable Rate Mortgage Loan Trust,
Series 2004-19, Class 2A1
5.8317% due 01/25/2035 (b)***		2,238,811		2,247,206
Structured Asset Mortgage Investments, Inc.,
Series 2006-AR3 , Class 12A1
5.5444% due 05/25/2036 (b)***		2,667,269		2,670,218
Thornburg Mortgage Securities Trust,
Series 2006-5, Class A1
5.45% due 08/25/2036 (b)***		2,900,000		2,900,454
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C16 , Class A1
4.061% due 10/15/2041 ***		2,161,163		2,117,822
Washington Mutual Mortgage Securities Corp.,
Series 2003-R1 , Class A1
5.5944% due 12/25/2027 (b)***		1,697,297		1,696,367
Washington Mutual Mortgage Securities Corp.,
Series 2005-AR13 , Class A1A1
5.6144% due 10/25/2045 (b)***		458,533		461,432
Washington Mutual Mortgage Securities Corp.,
Series 2005-AR2 , Class 2A1A
5.6344% due 01/25/2045 (b)***		867,672		872,807
Washington Mutual Mortgage Securities Corp.,
Series 2005-AR6 , Class 2A1A
5.615% due 04/25/2045 (b)***		1,472,123		1,475,522
Washington Mutual Mortgage Securities Corp.,
Series 2006-AR3 , Class A1A
5.432% due 02/25/2046 (b)***		2,398,400		2,402,917
Wells Fargo Mortgage Backed Securities Trust,
Series 2006-AR2 , Class 2A1
4.95% due 03/25/2036 (b)***		2,544,984		2,513,365

				99,422,741


TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $107,286,281)			$	107,871,120

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES - 16.28%
United States - 16.28%
ACE Securities Corp.,
Series 2006-ASP4 , Class A2A
5.45% due 08/25/2036 (b)***	$	2,743,004	$	2,742,577
ACE Securities Corp., Series 2006-HE1 , Class A2A
5.4044% due 02/25/2036 (b)***		1,784,794		1,785,225
ACE Securities Corp., Series 2006-NC1 , Class A2A
5.3944% due 12/25/2035 (b)***		1,691,534		1,691,928
ACE Securities Corp., Series 2006-NC1 , Class A2B
5.4744% due 12/25/2035 (b)***		2,500,000		2,501,173
Argent Securities, Inc.,
Series 2005-W4 , Class A1A1
5.4444% due 02/25/2036 (b)***		1,861,516		1,861,781
Argent Securities, Inc., Series 2005-W4, Class A2A
5.4644% due 02/25/2036 (b)***		1,451,826		1,452,009
Argent Securities, Inc., Series 2006-M2 , Class A2A
5.3781% due 09/25/2036 (b)***		2,900,000		2,902,273
Asset Backed Funding Certificates,
Series 2006-OPT1 , Class A3A
5.408% due 09/25/2036 (b)***		892,135		891,996
Asset Backed Securities Corp., Home Equity
Series 2006-HE3 , Class A3
5.3844% due 03/25/2036 (b)***		2,003,158		2,003,987
Bear Stearns Asset Backed Securities, Inc.
5.75% due 12/15/2046		3,500,000		3,511,013
Countrywide Asset-Backed Certificates,
Series 2006-1, Class AF1
5.4544% due 07/25/2036 (b)***		2,196,247		2,196,372
Countrywide Asset-Backed Certificates,
Series 2006-3, Class 2A1
5.3944% due 06/25/2036 (b)***		2,166,310		2,166,879
Countrywide Asset-Backed Certificates,
Series 2006-4, Class 2A1
5.3944% due 07/25/2036 (b)***		2,365,684		2,365,684
FBR Securitization Trust, Series 2005-5, Class AV21
5.444% due 11/25/2035 (b)***		532,387		532,450
First NLC Trust, Series 2005-3, Class AV1
5.4344% due 12/25/2035 (b)***		315,733		315,754
First NLC Trust, Series 2005-4, Class A1
5.4444% due 02/25/2036 (b)***		321,986		322,012
GE-WMC Mortgage Securities LLC,
Series 2005-2, Class A2A
5.4244% due 12/25/2035 (b)***		246,307		246,345
GSAMP Trust, Series 2006-NC1 , Class A1
5.3944% due 02/25/2036 (b)***		1,946,237		1,946,540
GSAMP Trust, Series 2006-S1 , Class A2A
5.4144% due 11/25/2035 (b)***		2,002,649		2,003,276
GSAMP Trust, Series 2006-SD1 , Class A1
5.4444% due 12/25/2035 (b)***		1,695,377		1,695,908
GSR Mortgage Loan Trust,
Series 2005-HEL1, Class A2A
5.4244% due 11/25/2030 (b)***		1,549,261		1,549,330
Home Equity Asset Trust, Series 2005-8, Class 2A1
5.4344% due 02/25/2036 (b)***		665,626		665,796
Home Equity Mortgage Trust,
Series 2006-1, Class A1A1
5.4144% due 05/25/2036 (b)***		1,550,575		1,550,817

The accompanying notes are an integral part of the financial statements. 218

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
United States (continued)
Honda Auto Receivables Owner Trust,
Series 2006-2 , Class A2
5.42% due 12/22/2008 ***	$	2,500,000	$	2,501,953
JP Morgan Mortgage Acquisition Corp.,
Series 2006-FRE1, Class A2
5.3944% due 05/25/2035 (b)***		1,276,161		1,276,388
JP Morgan Mortgage Acquisition Corp.,
Series 2006-WMC3, Class A2
5.38% due 08/25/2036 (b)		2,800,000		2,801,316
Long Beach Mortgage Loan Trust,
Series 2004-4 , Class 1A1
5.6044% due 10/25/2034 (b)***		2,472,174		2,477,400
Long Beach Mortgage Loan Trust,
Series 2005-3 , Class 2A1
5.4444% due 09/25/2035 (b)***		60,423		60,431
Long Beach Mortgage Loan Trust,
Series 2006-2, Class 2A1
5.3944% due 03/25/2036 (b)***		1,862,109		1,862,411
Long Beach Mortgage Loan Trust,
Series 2006-WL1 , Class 2A1
5.4144% due 01/25/2036 (b)***		4,649,960		4,651,507
Mastr Asset Backed Securities Trust,
Series 2005-NC2 , Class A1
5.4344% due 11/25/2035 (b)***		1,754,453		1,754,704
Mastr Asset Backed Securities Trust,
Series 2006-HE1 , Class A1
5.4044% due 01/25/2036 (b)***		1,853,850		1,854,176
Mastr Asset Backed Securities Trust,
Series 2006-NC1 , Class A1
5.4044% due 01/25/2036 (b)***		1,832,083		1,832,501
Morgan Stanley Capital I,
Series 2006-NC2 , Class A2A
5.3944% due 02/25/2036 (b)***		3,940,327		3,940,757
Nelnet Student Loan Trust, Series 2006-1 , Class A1
5.3781% due 08/23/2011 (b)***		2,413,731		2,413,731
New Century Home Equity Loan Trust,
Series 2005-B, Class A2A
5.4444% due 10/25/2035 (b)***		739,889		739,999
Newcastle Mortgage Securities Trust,
Series 2006-1, Class A1
5.3944% due 03/25/2036 (b)***		1,771,122		1,771,486
Nomura Asset Acceptance Corp.,
Series 2006-S1, Class A1
5.4644% due 01/25/2036 (b)***		638,545		638,844
Park Place Securities, Inc.,
Series 2005-WHQ4, Class A2A
5.4344% due 09/25/2035 (b)***		490,686		490,740
Popular ABS Mortgage Pass-Through Trust,
Series 2005-4, Class AV1
5.4344% due 09/25/2035 (b)***		733,158		733,123
Residential Asset Mortgage Products, Inc.,
Series 2006-NC1, Class A1
5.4044% due 01/25/2036 (b)***		1,649,832		1,649,832
Residential Asset Mortgage Products, Inc.,
Series 2006-NC2 , Class A1
5.4044% due 02/25/2036 (b)***		3,872,055		3,872,055

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
United States (continued)
Residential Asset Mortgage Products, Inc.,
Series 2006-RS1 , Class AI1
5.4044% due 01/25/2036 (b)***	$	1,864,837	$	1,865,017
Residential Asset Securities Corp.,
Series 2005-EMX1, Class AI1
5.4244% due 03/25/2035 (b)***		316,067		316,094
Residential Asset Securities Corp.,
Series 2005-KS12 , Class A1
5.4144% due 01/25/2036 (b)***		472,225		472,315
Residential Asset Securities Corp.,
Series 2006-EMX1, Class A1
5.4044% due 01/25/2036 (b)***		1,900,904		1,901,204
Residential Asset Securities Corp.,
Series 2006-KS2, Class A1
5.3944% due 03/25/2036 (b)***		882,014		882,014
Residential Asset Securities Corp.,
Series 2006-KS6 , Class A1
5.44% due 08/25/2036 (b)***		2,771,709		2,771,277
Residential Asset Securities Corp.,
Series 2006-KS7 , Class A1
5.38% due 09/25/2036 (b)***		2,800,000		2,799,563
Securitized Asset Backed Receivables LLC Trust,
Series 2005-FR4, Class A2A
5.4444% due 01/25/2036 (b)***		564,115		564,208
Soundview Home Equity Loan Trust,
Series 2005-A , Class A
5.4944% due 04/25/2035 (b)***		282,469		282,530
Soundview Home Equity Loan Trust,
Series 2005-B, Class A1
5.4344% due 05/25/2035 (b)***		105,489		105,488
Soundview Home Equity Loan Trust,
Series 2006-EQ1, Class A1
5.458% due 10/25/2036 (b)		2,900,000		2,900,909
Specialty Underwriting & Residential Finance,
Series 2006-BC1, Class A2A
5.4044% due 12/25/2036 (b)***		2,158,499		2,159,467
Structured Asset Investment Loan Trust,
Series 2005-6, Class A7
5.4144% due 07/25/2035 (b)***		524,805		524,895
Structured Asset Securities Corp.,
Series 2005-S6 , Class A1
5.4344% due 11/25/2035 (b)***		936,461		936,495
Structured Asset Securities Corp.,
Series 2005-S7, Class A1
5.4544% due 12/25/2035 (b)***		2,184,554		2,184,741

				96,890,696


TOTAL ASSET BACKED SECURITIES
(Cost $96,844,214)			$	96,890,696


OPTIONS - 0.39%
United States - 0.39%
Chicago Board of Trades American Purchase
Put United States Treasury Notes 10 yrs Futures
Expiration 11/21/2006 at $101.00		40,000		625

The accompanying notes are an integral part of the financial statements. 219

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Bond Fund (continued)
			Shares or
			Principal
			Amount		Value


OPTIONS (continued)
United States (continued)
Chicago Board of Trades American Purchase
Put United States Treasury Notes 5 yrs Futures
Expiration 11/21/2006 at $101.00			712,000	$	11,125
Chicago Mercantile Exchange American Purchase
Put on Eurodollar
Expiration 09/17/2007 at $90.75			272,500		681
Expiration 12/18/2006 at $92.50			137,500		344
Expiration 09/18/2006 at $92.75			812,500		2,031
Expiration 03/19/2007 at $92.75			500,000		1,250
Expiration 12/18/2006 at $94.125			812,500		2,031
EuroDollar Futures
Expiration 09/17/2007 at $90.25			1,132,500		2,831
Over The Counter European Style Call
Expiration 12/22/2006 at $4.80			18,200,000		10,574
Expiration 03/08/2007 at $5.00			28,000,000		81,116
Expiration 03/08/2007 at $5.00			65,000,000		188,305
Expiration 03/08/2007 at $5.00			7,000,000		20,279
Expiration 05/17/2007 at $5.00			10,300,000		48,631
Expiration 05/11/2007 at $5.00			14,000,000		64,608
Expiration 06/15/2007 at $5.00			8,600,000		45,070
Expiration 06/15/2007 at $5.00			8,700,000		45,594
Expiration 05/08/2007 at $5.15			33,000,000		174,834
Expiration 05/23/2007 at $5.20			78,100,000		474,770
Expiration 05/09/2007 at $5.20			190,600,000		1,151,903
Over The Counter European Style Put
Expiration 09/06/2006 at $5.50			2,600,000		0

					2,326,602

TOTAL OPTIONS (Cost $2,041,182)				$	2,326,602


SHORT TERM INVESTMENTS - 29.13%
Bank of America Corp.
5.40% due 11/09/2006 ***		$	1,500,000	$	1,484,475
Barclays U.S. Funding LLC
5.275% due 11/21/2006 ***			2,200,000		2,173,889
5.385% due 10/26/2006 ***			15,600,000		15,471,657
Kingdom Of Belgium
3.03% due 12/14/2006 ***	EUR		57,000,000		72,288,944
Danske Corp.
5.27% due 12/27/2006 ***		$	14,200,000		13,956,790
Dexia Delaware LLC
5.36% due 10/16/2006 to 10/27/2006 ***			17,300,000		17,181,142
General Electric Capital Corp.
5.35% due 10/26/2006 ***			14,600,000		14,480,665
State Street Navigator Securities Lending
Prime Portfolio (c)			9,309,000		9,309,000
Time Warner, Inc.
5.24% due 09/19/2006 ***			1,400,000		1,396,332
UBS Finance (Delaware) LLC
5.37% due 10/10/2006 ***			4,800,000		4,772,076
UniCredito Italiano SpA
5.226% due 12/03/2007 ***			1,400,000		1,399,487
United States Treasury Bills
zero coupon due 09/14/2006 (a)* **			20,000		19,964
zero coupon due 09/14/2006 * **			3,915,000		3,908,185

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


SHORT TERM INVESTMENTS (continued)
Westpac Banking Corp.
5.365% due 10/16/2006 ***	$	15,600,000	$	15,495,383

TOTAL SHORT TERM INVESTMENTS
(Cost $171,888,483)			$	173,337,989


REPURCHASE AGREEMENTS - 2.00%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$11,869,302 on 09/01/2006,
collateralized by $12,080,000
Federal Home Loan Mortgage
Corp., 5.50% due 11/16/2015
(valued at $12,110,200, including
interest) (c)	$	11,868,000	$	11,868,000

TOTAL REPURCHASE AGREEMENTS
(Cost $11,868,000)			$	11,868,000

Total Investments (Global Bond Fund)
(Cost $648,911,321) - 109.91%			$	653,970,305
Liabilities in Excess of Other Assets - (9.91)%				(58,972,368)

TOTAL NET ASSETS - 100.00%			$	594,997,937



Global Real Estate Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 98.03%
Australia - 10.31%
Abacus Property Group		1,703,594	$	2,007,993
Aspen Group		1,012,889		1,205,463
Centro Properties Group, Ltd.		900,453		5,262,077
Centro Retail Group		1,152,633		1,472,900
CFS Retail Property Trust *		36,216		55,259
Charter Hall Group *		1,634,381		1,845,366
Galileo Shopping America Trust		102,037		88,742
General Property Trust, Ltd. (a)		1,297,526		4,523,763
Lend Lease Corp.		160,405		1,922,479
Macquarie DDR Trust (a)		1,961,882		1,751,162
Macquarie Goodman Group, Ltd.		1,163,763		5,628,874
Stockland Company, Ltd.		1,020,106		5,634,448
Valad Property Group		40,947		48,419
Westfield Group (a)		371,070		5,172,041

				36,618,986
Canada - 4.83%
Brookfield Properties Corp.		157,480		5,519,674
Canadian Apartment Properties, REIT		51,900		832,445
Canadian Real Estate Investment Trust		160,050		3,685,062
RioCan Real Estate Investment Trust		201,950		4,178,968
Summit Real Estate Investment Trust		108,750		2,928,432

				17,144,581
Cayman Islands - 0.36%
China Resources Land, Ltd.		2,097,000		1,267,322

The accompanying notes are an integral part of the financial statements. 220

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Real Estate Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
China - 0.39%
China Overseas Land & Investment, Ltd.	1,996,000	$	1,380,809
Denmark - 0.66%
Sjaelso Gruppen AS	8,000		2,359,639
Finland - 0.71%
Technopolis Oyj	350,000		2,529,717
France - 3.39%
Fonciere Des Regions	12,500		1,695,006
Klepierre SA	22,000		3,087,342
Orco Property Group (a)	20,000		2,394,756
Unibail	25,000		4,873,943

			12,051,047
Germany - 1.14%
Colonia Real Estate AG * (a)	44,800		1,718,166
Patrizia Immobilien AG *	50,000		1,354,726
Vivacon AG *	40,000		979,905

			4,052,797
Greece - 0.27%
Eurobank Properties Real Estate Investment
Company	49,650		947,640
Hong Kong - 5.10%
Link, REIT *	1,470,000		3,054,565
Sun Hung Kai Properties, Ltd.	1,380,000		15,047,544

			18,102,109
Italy - 1.60%
Beni Stabili SpA	772,848		793,899
Pirelli & C Real Estate SpA	12,500		724,375
Risanamento SpA	540,000		4,179,310

			5,697,584
Japan - 14.21%
Aeon Mall Company, Ltd. * (a)	71,000		3,575,561
Diamond City Company, Ltd. (a)	56,000		2,681,778
Mitsubishi Estate Company, Ltd.	725,000		15,629,926
Mitsui Fudosan Company, Ltd.	657,000		14,723,787
Nippon Building Fund, Inc.	595		5,830,600
Sumitomo Realty &
Development Company, Ltd. (a)	272,000		8,019,428

			50,461,080
Netherlands - 0.48%
Eurocommercial Properties NV	40,000		1,703,961
Norway - 0.36%
NorGani Hotels ASA *	129,436		1,269,462
Philippines - 0.24%
Megaworld Corp.	26,093,000		862,494
Singapore - 4.89%
CapitaLand, Ltd.	1,064,000		3,219,119
CapitaMall Trust * (a)	1,096,000		1,644,035
CDL Hospitality Trusts, REIT *	2,687,000		1,596,863
City Developments, Ltd.	255,000		1,596,485
Hongkong Land Holdings, Ltd. (a)	1,935,000		7,778,700

Global Real Estate Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Singapore (continued)
The Ascott Group, Ltd.	2,350,000	$	1,553,423

			17,388,625
Spain - 0.54%
Renta Corp Real Estate SA * (a)	30,000		1,080,327
Riofisa SA *	25,000		826,715

			1,907,042
Sweden - 1.66%
Castellum AB	300,000		3,229,858
Kungsleden AB	90,000		872,683
Lennart Wallenstam Byggnads AB	135,000		1,779,528

			5,882,069
United Kingdom - 14.06%
Big Yellow Group PLC	260,000		2,256,545
British Land Company PLC	344,000		8,932,210
Dawnay Day Treveria PLC *	1,000,000		1,432,760
Derwent Valley Holdings PLC	76,750		2,636,720
Develica Deutschland, Ltd. *	2,700,000		3,557,594
Great Portland Estates PLC	275,000		2,955,622
Hammerson PLC	223,000		5,395,849
Land Securities Group PLC	295,000		10,628,447
London Merchant Securities PLC	170,000		702,549
Macau Property Opp. Fund, Ltd. *	428,500		788,623
Minerva PLC	400,000		2,159,055
Slough Estates PLC	390,000		4,874,138
Terrace Hill Group PLC	662,605		869,704
Unite Group PLC	350,000		2,773,006

			49,962,822
United States - 32.83%
AMB Property Corp., REIT	57,880		3,231,440
Apartment Investment & Management
Company, Class A, REIT	74,380		3,811,231
Archstone-Smith Trust, REIT (a)	119,050		6,331,079
Avalon Bay Communities, Inc., REIT	71,060		8,598,260
BioMed Realty Trust, Inc., REIT	36,540		1,137,856
Boston Properties, Inc., REIT	59,740		6,071,376
Digital Realty Trust, Inc., REIT	67,400		2,015,934
Equity Lifestyle Properties, Inc., REIT	41,830		1,875,239
Equity Office Properties Trust, REIT	184,450		6,841,250
Equity Residential, REIT	40,610		2,025,221
Essex Property Trust, Inc., REIT (a)	30,470		3,823,071
Federal Realty Investment Trust, REIT	47,490		3,517,584
FelCor Lodging Trust, Inc., REIT	59,600		1,278,420
Host Hotels & Resorts, Inc., REIT	304,510		6,863,655
Innkeepers USA Trust, REIT	31,900		528,264
Kilroy Realty Corp., REIT	32,310		2,554,752
LaSalle Hotel Properties, REIT	22,840		1,003,590
LTC Properties, Inc., REIT (a)	30,130		717,697
Nationwide Health Properties, Inc., REIT	57,020		1,485,941
ProLogis, REIT	76,390		4,312,979
Public Storage, Inc., REIT (a)	69,950		6,061,168
Regency Centers Corp., REIT	66,480		4,472,110

The accompanying notes are an integral part of the financial statements. 221

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Global Real Estate Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
United States (continued)
Simon Property Group, Inc., REIT		132,390	$	11,225,348
SL Green Realty Corp., REIT		38,200		4,261,592
Sovran Self Storage, Inc., REIT		2,950		159,536
Starwood Hotels & Resorts Worldwide, Inc.		58,989		3,141,754
Tanger Factory Outlet Centers, Inc., REIT		38,750		1,387,250
The Macerich Company, REIT		75,000		5,599,500
Ventas, Inc., REIT		87,830		3,517,592
Vornado Realty Trust, REIT		82,830		8,772,525

				116,623,214

TOTAL COMMON STOCKS (Cost $332,465,766)			$	348,213,000


SHORT TERM INVESTMENTS - 12.17%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	43,240,359	$	43,240,359

TOTAL SHORT TERM INVESTMENTS
(Cost $43,240,359)			$	43,240,359


REPURCHASE AGREEMENTS - 1.32%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$4,680,514 on 9/1/2006,
collateralized by $4,710,000
Federal National Mortgage
Association, 6.125% due
08/17/2026 (valued at $4,774,763,
including interest) (c)	$	4,680,000	$	4,680,000

TOTAL REPURCHASE AGREEMENTS
(Cost $4,680,000)			$	4,680,000

Total Investments (Global Real Estate Fund)
(Cost $380,386,125) - 111.52%			$	396,133,359
Liabilities in Excess of Other Assets - (11.52)%				(40,908,881)

TOTAL NET ASSETS - 100.00%			$	355,224,478


The portfolio had the following five top industry concentrations as of
August 31, 2006 (as a percentage of total net assets):
Real Estate		91.75%
Commercial Services		4.14%
Hotels & Restaurants		1.24%
Building Materials & Construction		0.66%
Investment Companies		0.22%


High Income Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 14.29%
Air Travel - 0.72%
AMR Corp. * (a)		100,600	$	2,077,390

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Broadcasting - 2.50%
Canadian Satellite Radio Holdings, Inc. *		376,845	$	2,519,905
XM Satellite Radio Holdings, Inc., Class A * (a)		362,650		4,699,944

				7,219,849
Cable and Television - 3.03%
Comcast Corp.-Special Class A *		250,650		8,750,191
Cellular Communications - 0.24%
Dobson Communications Corp., Class A *	��	99,650		684,596
Leisure Time - 1.56%
Isle of Capri Casinos, Inc. * (a)		221,850		4,521,303
Mining - 2.01%
Freeport-McMoran Copper & Gold, Inc.,
Class B		100,000		5,821,000
Sanitary Services - 1.13%
Allied Waste Industries, Inc. *		317,050		3,278,297
Telecommunications Equipment &
Services - 1.22%
Chunghwa Telecom Company, Ltd., ADR (a)		202,910		3,512,366
Telephone - 1.88%
Sprint Nextel Corp.		321,650		5,442,318

TOTAL COMMON STOCKS (Cost $44,699,138)			$	41,307,310


PREFERRED STOCKS - 0.31%
Auto Parts - 0.21%
Delphi Trust I * (a)		40,000		620,000
Containers & Glass - 0.10%
Pliant Corp., Series AA *		685		274,000

TOTAL PREFERRED STOCKS (Cost $750,323)			$	894,000


CORPORATE BONDS - 77.55%
Advertising - 1.61%
Vertis, Inc.
9.75% due 04/01/2009	$	3,108,000		3,146,850
10.875% due 06/15/2009 (a)		1,500,000		1,515,000

				4,661,850
Aerospace - 0.43%
Argo-Tech Corp.
9.25% due 06/01/2011		1,195,000		1,233,838
Air Travel - 11.62%
American Airlines Inc, Series 91B2
10.32% due 07/30/2014		980,000		931,000
American Airlines Inc., Series 90-K
9.93% due 06/15/2010		512,000		478,080
AMR Corp.
4.25% due 09/23/2023		4,500,000		6,136,875
9.00% due 08/01/2012 (a)		1,250,000		1,234,375
AMR Corp., Series MTNB
10.40% due 03/10/2011		4,500,000		4,235,625
Delta Airlines
12.7725% due 03/16/2008 (f)		1,500,000		1,548,750

The accompanying notes are an integral part of the financial statements. 222

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Air Travel (continued)
Northwest Airlines Corp.
6.625% due 05/15/2023 ^ (a)	$	12,850,000	$	5,943,125
7.625% due 11/15/2023 ^ (a)		5,745,000		2,642,700
10.00% due 02/01/2009 ^ (a)		3,800,000		1,800,250
Northwest Airlines Inc.
7.626% due 04/01/2010 ^		1,851,177		1,751,677
United AirLines Inc., Series 00-2
7.762% due 10/01/2049 ^		8,339,361		6,878,972

				33,581,429
Broadcasting - 4.36%
Canadian Satellite Radio Holdings, Inc., ADR
12.75% due 02/15/2014		3,500,000		3,456,250
XM Satellite Radio Holdings, Inc.
1.75% due 12/01/2009 (a)		3,000,000		2,373,750
9.75% due 05/01/2014 (a)		2,665,000		2,505,100
9.9888% due 05/01/2013 (b)		4,575,000		4,266,188

				12,601,288
Building Materials & Construction - 0.34%
Brand Services, Inc.
12.00% due 10/15/2012		864,000		972,588
Business Services - 0.32%
Allied Security Escrow Corp.
11.375% due 07/15/2011		276,000		272,550
Buhrmann US, Inc.
7.875% due 03/01/2015		130,000		126,100
CB Richard Ellis Services, Inc.
9.75% due 05/15/2010		496,000		529,480

				928,130
Cable and Television - 6.71%
Adelphia Communications Corp., Series B
7.75% due 01/15/2009 ^		3,000,000		1,785,000
Atlantic Broadband Finance LLC
9.375% due 01/15/2014		1,986,000		1,916,490
Century Communications
8.375% due 12/15/2007 ^ (a)		1,000,000		1,065,000
Charter Communications Holdings I LLC
11.75 due 05/15/2014		4,340,000		2,951,200
Charter Communications Inc.
5.875% due 11/16/2009 (a)		4,600,000		4,030,750
Charter Communications Operating LLC
8.00% due 04/30/2012		3,440,000		3,448,600
DirecTV Holdings LLC
8.375% due 03/15/2013		1,195,000		1,254,750
Insight Communications, Inc.
12.25 due 02/15/2011		74,000		78,625
Shaw Communications, Inc.
8.25% due 04/11/2010		18,000		18,922
Young Broadcasting, Inc.
8.75% due 01/15/2014		37,000		31,450
10.00% due 03/01/2011 (a)		3,034,000		2,806,450

				19,387,237
Cellular Communications - 6.49%
American Cellular Corp.
10.00% due 08/01/2011		3,500,000		3,640,000

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cellular Communications (continued)
American Tower Corp.
5.00% due 02/15/2010	$	441,000	$	439,346
Centennial Communications Corp.
10.00% due 01/01/2013		815,000		812,963
10.75% due 12/15/2008		92,000		92,920
Dobson Cellular Systems, Inc.
8.375% due 11/01/2011		441,000		456,435
8.875% due 10/01/2013 (a)		6,250,000		6,171,875
Nextel Communications, Inc.
6.875% due 10/31/2013		662,000		670,309
Rural Cellular Corp.
9.75% due 01/15/2010 (a)		6,500,000		6,467,500

				18,751,348
Chemicals - 2.20%
Ethyl Corp.
8.875% due 05/01/2010		2,446,000		2,519,380
FMC Corp.
7.00% due 05/15/2008		423,000		432,022
7.75% due 07/01/2011		901,000		964,093
Huntsman ICI Chemicals
10.125% due 07/01/2009		1,673,000		1,706,460
Johnson Diversey, Inc., Series B
9.625% due 05/15/2012		18,000		17,730
Rhodia SA
10.25% due 06/01/2010		644,000		706,790

				6,346,475
Containers & Glass - 3.25%
BWAY Corp.
10.00% due 10/15/2010		675,000		708,750
Graphic Packaging International Corp.
9.50% due 08/15/2013 (a)		2,750,000		2,763,750
Pliant Corp.
11.125% due 09/01/2009 ^ (a)		552,000		532,680
11.625% due 06/15/2009 ^		761,850		841,844
13.00% due 07/15/2010 ^ (a)		90,000		54,000
Stone Container Corp.
9.75% due 02/01/2011		2,998,000		3,080,445
Stone Container Finance
7.375% due 07/15/2014		18,000		16,200
Tekni Plex, Inc., Series B
12.75% due 06/15/2010 (a)		1,949,000		1,403,280

				9,400,949
Cosmetics & Toiletries - 0.49%
Jafra Cosmetics International, Inc.
10.75% due 05/15/2011		1,324,000		1,429,920
Electrical Utilities - 0.01%
CMS Energy Corp.
8.50% due 04/15/2011		37,000		39,682
Electronics - 0.85%
Muzak LLC/Muzak Finance Corp.
9.875% due 03/15/2009 (a)		919,000		551,400
10.00% due 02/15/2009 (a)		2,170,000		1,909,600

				2,461,000

The accompanying notes are an integral part of the financial statements. 223

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Energy - 0.49%
Exide Technologies
10.50% due 03/15/2013 (a)	$	1,600,000	$	1,408,000
Financial Services - 4.79%
BCP Crystal Holdings Corp.
9.625% due 06/15/2014		2,832,000		3,069,180
JSG Funding PLC
9.625% due 10/01/2012		820,000		855,875
Metallurg Holdings, Inc.
10.50% due 10/01/2010 (a)		3,500,000		3,465,000
Nexstar Finance Holdings LLC
zero coupon, Step up to 11.375% on
04/01/2008 due 04/01/2013		1,122,000		925,650
Nexstar Finance, Inc.
7.00% due 01/15/2014 (a)		221,000		197,795
Ucar Finance, Inc.
10.25% due 02/15/2012		5,092,000		5,346,600

				13,860,100

Food & Beverages - 3.53%
ASG Consolidated LLC/ASG Finance, Inc.
zero coupon, Step up to 11.5% on
11/01/2008 due 11/01/2011		4,360,000		3,782,300
Constellation Brands, Inc., Series B
8.125% due 01/15/2012		55,000		57,062
Del Monte Corp.
8.625% due 12/15/2012		2,262,000		2,366,618
Dole Food, Inc.
7.25% due 06/15/2010		1,100,000		1,031,250
Pinnacle Foods Holding Corp.
8.25% due 12/01/2013		3,016,000		2,963,220

				10,200,450

Gas & Pipeline Utilities - 0.77%
Atlas Pipeline Partners LP
8.125% due 12/15/2015		2,170,000		2,213,400
Healthcare Products - 0.15%
Sybron Dental Specialties, Inc.
8.125% due 06/15/2012		423,000		439,920
Healthcare Services - 1.51%
Ameripath, Inc.
10.50% due 04/01/2013		3,016,000		3,189,420
Insight Health Services Corp.
9.875% due 11/01/2011		405,000		187,312
Psychiatric Solutions, Inc.
10.625% due 06/15/2013		938,000		1,001,315

				4,378,047

Holdings Companies/Conglomerates - 2.59%
UAL Corp.
5.00% due 02/01/2021 (a)		8,260,000		7,476,952
Homebuilders - 0.02%
Meritage Homes Corp.
7.00% due 05/01/2014		18,000		16,020
Standard Pacific Corp.
6.50% due 10/01/2008 (a)		37,000		36,445

				52,465

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Hotels & Restaurants - 1.45%
Buffets, Inc.
11.25% due 07/15/2010	$	460,000	$	485,300
CCM Merger, Inc.
8.00% due 08/01/2013		2,023,000		1,937,022
Turning Stone Casino Resort
9.125% due 12/15/2010		1,563,000		1,570,815
Vicorp Restaurants, Inc.
10.50% due 04/15/2011		221,000		196,690

				4,189,827

Industrials - 0.19%
Doe Run Resources Corp., Series AI
11.75% due 11/01/2008		591,000		559,973
Leisure Time - 6.90%
AMC Entertainment, Inc.
9.50% due 02/01/2011		3,500,000		3,491,250
AMC Entertainment, Inc., Series B
8.625% due 08/15/2012		18,000		18,450
AMF Bowling Worldwide, Inc.
10.00% due 03/01/2010		460,000		471,500
Chukchansi Economic Development Authority
8.00% due 11/15/2013		2,262,000		2,284,620
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		1,800,000		1,797,750
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014		2,150,000		2,139,250
Majestic Star Casino LLC
9.75% due 01/15/2011		2,750,000		2,688,125
MTR Gaming Group, Inc.
9.00% due 06/01/2012		750,000		755,625
Trump Entertainment Resorts, Inc.
8.50% due 06/01/2015 (a)		6,500,000		6,288,750

				19,935,320

Manufacturing - 0.49%
Blount, Inc.
8.875% due 08/01/2012		257,000		257,321
Park-Ohio Industries, Inc.
8.375% due 11/15/2014		1,287,000		1,164,735

				1,422,056

Medical-Hospitals - 2.42%
Alliance Imaging, Inc.
7.25% due 12/15/2012		2,000,000		1,860,000
HealthSouth Corp.
11.4181% due 06/15/2014 (b)		5,000,000		5,137,500

				6,997,500

Metal & Metal Products - 0.69%
Mueller Group, Inc.
10.00% due 05/01/2012		1,124,000		1,225,160
Mueller Holdings, Inc.
zero coupon, Step up to 14.75% on
04/15/2009 due 04/15/2014		872,000		767,360

				1,992,520

The accompanying notes are an integral part of the financial statements. 224

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Mining - 1.63%
Freeport-McMoran Copper & Gold, Inc.
10.125% due 02/01/2010	$	4,440,000	$	4,721,940
Paper - 3.33%
Abitibi-Consolidated, Inc.
7.50% due 04/01/2028		347,000		272,395
7.75% due 06/15/2011 (a)		846,000		780,435
Boise Cascade LLC
7.125% due 10/15/2014		2,813,000		2,616,090
Bowater Canada Finance Corp.
7.95% due 11/15/2011		55,000		52,800
Bowater, Inc.
9.50% due 10/15/2012		1,269,000		1,281,690
Buckeye Technologies, Inc.
9.25% due 09/15/2008		1,030,000		1,030,000
Newark Group, Inc.
9.75% due 03/15/2014		1,581,000		1,509,855
Norske Skog Canada, Ltd.
7.375% due 03/01/2014		441,000		402,412
Pope & Talbot, Inc.
8.375% due 06/01/2013		2,100,000		1,680,000

				9,625,677

Petroleum Services - 0.89%
Hanover Compressor Company
8.625% due 12/15/2010		846,000		879,840
Hanover Equipment Trust
8.75% due 09/01/2011		1,600,000		1,664,000
Premcor Refining Group, Inc.
9.50% due 02/01/2013		37,000		40,413

				2,584,253

Plastics - 0.92%
Berry Plastics Corp.
10.75% due 07/15/2012		2,446,000		2,666,140
Publishing - 0.75%
Block Communications, Inc.
8.25% due 12/15/2015		2,243,000		2,172,906
Retail - 0.57%
Eye Care Centers of America
10.75% due 02/15/2015		1,545,000		1,657,013
Retail Grocery - 0.10%
CA FM Lease Trust
8.50% due 07/15/2017		264,056		284,671
Retail Trade - 0.99%
Jo-Ann Stores, Inc.
7.50% due 03/01/2012		3,177,000		2,779,875
PETCO Animal Supplies, Inc.
10.75% due 11/01/2011		74,000		77,885

				2,857,760

Sanitary Services - 1.57%
Allied Waste North America, Inc.
4.25% due 04/15/2034 (a)		5,000,000		4,525,000
Steel - 0.01%
United States Steel LLC
10.75% due 08/01/2008		18,000		19,395

High Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Telecommunications Equipment &
Services - 0.25%
Mobile Satellite Ventures LP
zero coupon, Step up to 14% on
04/01/2010 due 04/01/2013	$	1,190,000	$	737,800
Tobacco - 1.09%
Alliance One International, Inc.
11.00% due 05/15/2012 (a)		1,275,000		1,275,000
North Atlantic Trading Company
9.25% due 03/01/2012		2,265,000		1,868,625

				3,143,625
Travel Services - 0.78%
TDS Investor Corp.
9.875% due 09/01/2014		2,290,000		2,244,200

TOTAL CORPORATE BONDS (Cost $227,328,122)			$	224,162,644


ASSET BACKED SECURITIES - 0.54%
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031		1,525,000		1,552,442

TOTAL ASSET BACKED SECURITIES
(Cost $1,539,942)			$	1,552,442


OPTIONS - 0.04%
Put Options - 0.04%
Tesoro Corp.
Expiration 01/20/2007 at $50.00 *		101,600		106,680

TOTAL OPTIONS (Cost $194,569)			$	106,680


SHORT TERM INVESTMENTS - 27.25%
Great Lakes Carbon Income Fund	$	838,891	$	7,769,966
State Street Global Advisers Funds (c)		10,550,734		10,550,734
State Street Navigator Securities Lending
Prime Portfolio (c)		60,455,958		60,455,958

TOTAL SHORT TERM INVESTMENTS
(Cost $78,125,141)			$	78,776,658

Total Investments (High Income Fund)
(Cost $352,637,235) - 119.98%			$	346,799,734
Liabilities in Excess of Other Assets - (19.98)%				(57,740,499)

TOTAL NET ASSETS - 100.00%			$	289,059,235



High Yield Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 0.33%
Cellular Communications - 0.31%
American Tower Corp., Class A * (a)		103,281	$	3,703,657
Household Products - 0.01%
Home Interiors *		9,260,656		92,606
Internet Content - 0.01%
Globix Corp. *		15,039		72,488

The accompanying notes are an integral part of the financial statements. 225

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
			Shares or
			Principal
			Amount		Value


COMMON STOCKS (continued)
Telecommunications Equipment &
Services - 0.00%
XO Holdings, Inc. * (a)			821	$	3,793

TOTAL COMMON STOCKS (Cost $4,876,118)				$	3,872,544


PREFERRED STOCKS - 0.23%
Broadcasting - 0.09%
Spanish Broadcasting System, Series B *			1,000		1,085,000
Crude Petroleum & Natural Gas - 0.14%
Chesapeake Energy Corp. (a)			5,993		1,609,121

TOTAL PREFERRED STOCKS (Cost $2,578,474)				$	2,694,121


WARRANTS - 0.02%
Government of Mexico - 0.02%
United Mexican States
(Expiration Date 10/10/2006; strike
price $25.00)			22,500		85,500
(Expiration date 11/09/2006; strike
price $22.50)			28,000		100,800

					186,300

TOTAL WARRANTS (Cost $119,250)				$	186,300


FOREIGN GOVERNMENT OBLIGATIONS - 10.53%
Argentina - 0.55%
Republic of Argentina, Series GDP
zero coupon due 12/15/2035 (b)	EUR		587,000		69,836
0.275% due 12/15/2035 (b)	ARS		5,863,355		162,792
2.00% due 01/03/2010 (b)			1,870,000		1,004,028
4.50% due 12/15/2035 (b)		$	48,000		4,560
5.59% due 08/03/2012 (b)			1,000,700		702,992
5.83% due 12/31/2033 (b)	ARS		858,956		350,515
7.00% due 03/18/2049	EUR		6,100,000,000		1,137,271
7.00% due 03/18/2004 ^			625,000		239,460
7.625 due 08/11/2007			505,000,000		94,913
8.00% due 02/26/2008			304,137		118,471
8.00% due 10/30/2009			175,000,000		31,713
8.125% due 04/21/2008			625,000		233,351
8.125% due 10/04/2049			375,000		138,639
8.50% due 02/23/2049			2,400,000		475,640
9.00% due 05/26/2009			100,000		37,242
9.00% due 06/20/2049			600,000		226,504
9.25% due 10/21/2049			225,000		82,751
9.50% due 03/04/2049			456,000		178,210
9.75% due 11/26/2049			425,000		155,765
10.00% due 02/22/2007			775,000		297,326
11.75% due 05/20/2011 (a)			2,425,000		478,215
11.75% due 11/13/2026			1,800,000		337,304

					6,557,498
Brazil - 1.84%
Federative Republic of Brazil
7.125% due 01/20/2037		$	1,875,000		1,919,063
8.00% due 01/15/2018 (a)			6,325,000		6,944,850
8.25% due 01/20/2034 (a)			5,850,000		6,727,500

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Brazil (continued)
Federative Republic of Brazil (continued)
8.75% due 02/04/2025	$	1,395,000	$	1,657,957
8.875% due 10/14/2019		500,000		591,750
10.50% due 07/14/2014		225,000		282,487
11.00% due 08/17/2040 (a)		2,878,000		3,760,107

				21,883,714
Colombia - 0.63%
Republic of Colombia
8.125% due 05/21/2024 (a)		500,000		550,000
10.375% due 01/28/2033 (a)		1,180,000		1,598,900
10.75% due 01/15/2013 (a)		3,725,000		4,551,950
11.75% due 02/25/2020		575,000		802,125

				7,502,975
Ecuador - 0.31%
Republic of Ecuador
4.00% coupon, Step up to 10.00% on
08/15/2007 due 08/15/2030 (a)(b)		3,095,000		3,085,715
9.375% due 12/15/2015		600,000		613,500

				3,699,215
El Salvador - 0.13%
Republic of El Salvador
7.75% due 01/24/2023		975,000		1,078,350
8.25% due 04/10/2032		390,000		435,435

				1,513,785
Mexico - 1.71%
Government of Mexico
5.875% due 01/15/2014 (a)		4,900,000		4,985,750
6.375% due 01/16/2013		4,405,000		4,581,200
6.625% due 03/03/2015 (a)		1,274,000		1,351,714
8.00% due 09/24/2022		3,550,000		4,277,750
8.125% due 12/30/2019		800,000		964,000
8.30% due 08/15/2031		525,000		659,662
8.375% due 01/14/2011 (a)		500,000		556,500
11.375% due 09/15/2016		2,075,000		2,971,400

				20,347,976
Panama - 0.24%
Republic of Panama
9.375% due 04/01/2029		2,150,000		2,725,125
9.625% due 02/08/2011		150,000		170,475

				2,895,600
Peru - 0.58%
Republic of Peru
4.00% coupon, Step up to 5.00% on
03/07/2007 due 03/07/2017 (b)		421,860		415,532
4.00% coupon, Step up to 5.00% on
03/07/2007 due 03/07/2017 (b)		3,341,700		3,274,866
7.35% due 07/21/2025 (a)		77,000		81,235
8.375% due 05/03/2016 (a)		290,000		329,875
8.75% due 11/21/2033 (a)		2,300,000		2,771,500
9.875% due 02/06/2015		25,000		30,750

				6,903,758

The accompanying notes are an integral part of the financial statements. 226

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
			Shares or
			Principal
			Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Philippines - 0.40%
Republic of Philippines
9.50% due 02/02/2030 (a)		$	570,000	$	695,400
10.625% due 03/16/2025 (a)			3,050,000		3,999,313

					4,694,713
Russia - 2.08%
Gazprom OAO, Series A6
6.95 due 08/06/2009	RUB		37,840,000		1,424,991
Russian Federation, Series REGS
5.00% due 03/31/2030		$	15,870,000		17,661,723
8.25% due 03/31/2010			928,895		971,253
11.00% due 07/24/2018			1,160,000		1,664,368
12.75% due 06/24/2028			1,680,000		2,996,280

					24,718,615
South Africa - 0.23%
Republic of South Africa
6.50% due 06/02/2014			1,075,000		1,122,031
7.375% due 04/25/2012 (a)			835,000		897,625
9.125% due 05/19/2009			675,000		734,907

					2,754,563
Turkey - 1.13%
Republic of Turkey
7.00% due 06/05/2020			146,000		143,810
7.25% due 03/15/2015			2,400,000		2,439,000
7.375% due 02/05/2025			1,929,000		1,924,178
8.00% due 02/14/2034			783,000		819,214
9.50% due 01/15/2014 (a)			2,709,000		3,101,805
11.00% due 01/14/2013			782,000		942,310
11.50% due 01/23/2012			1,352,000		1,637,610
11.75% due 06/15/2010			450,000		526,500
11.875% due 01/15/2030 (a)			1,225,000		1,828,312

					13,362,739
Uruguay - 0.09%
Republic of Uruguay
7.25% due 02/15/2011			650,000		663,000
7.50% due 03/15/2015			325,000		336,375

					999,375
Venezuela - 0.61%
Republic of Venezuela
zero coupon due 04/15/2020			305,000		109,037
5.375% due 08/07/2010			375,000		364,500
5.75% due 02/26/2016			2,241,000		2,095,335
7.65% due 04/21/2025			949,000		1,008,313
10.75% due 09/19/2013			3,000,000		3,675,000

					7,252,185

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $122,103,726)				$	125,086,711


CORPORATE BONDS - 82.99%
Advertising - 1.57%
Lamar Media Corp.
6.625% due 08/15/2015			4,275,000		4,007,813

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Advertising (continued)
R.H. Donnelley Corp., Series A-1
6.875% due 01/15/2013	$	1,650,000	$	1,480,875
R.H. Donnelley Corp., Series A-2
6.875% due 01/15/2013		3,200,000		2,872,000
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016		7,900,000		7,781,500
R.H. Donnelley Finance Corp., Series I
10.875% due 12/15/2012		2,300,000		2,518,500

				18,660,688
Aerospace - 1.01%
Alliant Techsystems, Inc.
6.75% due 04/01/2016 (a)		1,875,000		1,823,437
DRS Technologies, Inc.
6.625% due 02/01/2016		145,000		141,012
6.875% due 11/01/2013		4,925,000		4,777,250
Sequa Corp.
9.00% due 08/01/2009		2,300,000		2,426,500
TransDigm, Inc.
7.75% due 07/15/2014 (a)		2,845,000		2,823,663

				11,991,862
Air Travel - 0.31%
Continental Airlines, Inc.
6.541% due 09/15/2008		386,819		369,821
6.80% due 07/02/2007		493,330		471,635
Continental Airlines, Inc., Series D
7.568% due 12/01/2006		2,840,000		2,835,509

				3,676,965
Apparel & Textiles - 0.80%
Levi Strauss & Company
9.75% due 01/15/2015		7,275,000		7,529,625
Oxford Industries, Inc.
8.875% due 06/01/2011		1,925,000		1,944,250

				9,473,875
Auto Parts - 0.84%
Commercial Vehicle Group, Inc.
8.00% due 07/01/2013		715,000		681,038
Keystone Automotive Operations
9.75% due 11/01/2013 (a)		3,600,000		3,420,000
TRW Automotive, Inc.
9.375% due 02/15/2013		615,000		656,513
11.00% due 02/15/2013		125,000		135,937
Visteon Corp.
7.00% due 03/10/2014 (a)		1,340,000		1,189,250
8.25% due 08/01/2010 (a)		4,020,000		3,939,600

				10,022,338
Auto Services - 1.44%
Avis Budget Car Rental LLC
7.625% due 05/15/2014		960,000		912,000
Hertz Corp., Class A
8.875% due 01/01/2014		3,750,000		3,890,625
10.50% due 01/01/2016 (a)		7,435,000		8,011,213

The accompanying notes are an integral part of the financial statements. 227

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Auto Services (continued)
Penhall International Corp.
12.00% due 08/01/2014 (a)	$	4,245,000	$	4,329,900

				17,143,738
Automobiles - 4.25%
AutoNation, Inc.
7.00% due 04/15/2014		1,510,000		1,489,238
7.5069% due 04/15/2013 (b)		1,210,000		1,216,050
Ford Motor Company
7.45% due 07/16/2031 (a)		34,730,000		27,263,050
8.875% due 01/15/2022		2,555,000		2,171,750
8.90% due 01/15/2032 (a)		1,425,000		1,278,937
General Motors Corp.
7.20% due 01/15/2011		2,655,000		2,379,544
8.375% due 07/15/2033 (a)		17,475,000		14,635,312

				50,433,881
Banking - 0.21%
RSHB Capital SA for OJSC Russian Agricultural
Bank
7.175% due 05/16/2013 (a)		2,370,000		2,447,025
Broadcasting - 1.27%
Barrington Broadcasting
10.50% due 08/15/2014		915,000		896,700
CMP Susquehanna Corp.
9.875% due 05/15/2014		895,000		834,588
CSC Holdings, Inc.
7.00% due 04/15/2012		2,550,000		2,505,375
7.625% due 07/15/2018 (a)		300,000		302,625
7.875% due 02/15/2018		645,000		659,513
8.125% due 08/15/2009		2,575,000		2,658,687
CSC Holdings, Inc., Series B
7.625% due 04/01/2011		700,000		715,750
8.125% due 07/15/2009 (a)		50,000		51,687
Hughes Network Systems LLC/HNS Finance Corp.
9.50% due 04/15/2014		2,410,000		2,446,150
Radio One, Inc.
6.375% due 02/15/2013		843,000		762,915
XM Satellite Radio Holdings, Inc.
9.75% due 05/01/2014 (a)		2,470,000		2,321,800
9.9888% due 05/01/2013 (b)		1,010,000		941,825

				15,097,615
Building Materials & Construction - 0.89%
Associated Materials, Inc.
zero coupon, Step up to 11.25% on
03/01/2009 due 03/01/2014		4,040,000		2,201,800
9.75% due 04/15/2012 (a)		3,540,000		3,469,200
NTK Holdings, Inc.
zero coupon, Step up to 10.75% on
09/01/2009 due 03/01/2014		7,230,000		4,844,100

				10,515,100
Business Services - 1.94%
Activant Solutions, Inc.
9.50% due 05/01/2016		1,775,000		1,664,062
Affinion Group, Inc.
10.125% due 10/15/2013 (a)		3,715,000		3,854,313

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Business Services (continued)
Invensys PLC
9.875% due 03/15/2011	$	2,340,000	$	2,527,200
Sungard Data Systems, Inc.
9.125% due 08/15/2013		4,075,000		4,207,438
10.25% due 08/15/2015		3,385,000		3,456,931
Xerox Corp.
6.40% due 03/15/2016		7,265,000		7,193,047
9.75% due 01/15/2009		100,000		108,000

				23,010,991
Cable and Television - 5.10%
Charter Communications Holdings I LLC
11.00% due 10/01/2015		5,660,000		5,023,250
11.75 due 05/15/2014		4,000,000		2,720,000
Charter Communications Holdings II LLC/Charter
Communications Holdings II Capital Corp.
10.25% due 09/15/2010		4,940,000		5,001,750
Charter Communications Holdings LLC
8.625% due 04/01/2009 (a)		1,590,000		1,450,875
10.75% due 10/01/2009		1,000,000		915,000
Charter Communications Holdings LLC/Charter
Communications Holdings Capital Corp.
9.625% due 11/15/2009 (a)		1,600,000		1,456,000
Charter Communications Operating LLC
8.375% due 04/30/2014		1,525,000		1,540,250
CSC Holdings, Inc.
7.25% due 07/15/2008		550,000		556,187
DirecTV Holdings LLC
6.375% due 06/15/2015		6,185,000		5,782,975
Echostar DBS Corp.
6.625% due 10/01/2014		10,075,000		9,684,594
7.125% due 02/01/2016		4,085,000		3,977,769
Kabel Deutschland GMBH
10.625% due 07/01/2014		2,855,000		3,054,850
Lodgenet Entertainment Corp.
9.50% due 06/15/2013		4,435,000		4,756,537
Mediacom Broadband LLC
8.50% due 10/15/2015		375,000		371,250
Quebecor Media, Inc.
7.75% due 03/15/2016		955,000		945,450
Rainbow National Services LLC
8.75% due 09/01/2012		1,385,000		1,461,175
10.375% due 09/01/2014		3,000,000		3,341,250
Rogers Cable, Inc.
5.50% due 03/15/2014		790,000		731,737
6.25% due 06/15/2013		705,000		686,494
8.75% due 05/01/2032		750,000		851,250
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		4,920,000		4,981,500
Videotron Ltee
6.375% due 12/15/2015		1,375,000		1,287,344

				60,577,487
Cellular Communications - 1.89%
Alamosa Delaware, Inc.
11.00% due 07/31/2010		1,575,000		1,720,687

The accompanying notes are an integral part of the financial statements. 228

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
			Shares or
			Principal
			Amount		Value


CORPORATE BONDS (continued)
Cellular Communications (continued)
Centennial Communications Corp.
10.125% due 06/15/2013		$	3,280,000	$	3,460,400
Rogers Wireless, Inc.
7.25% due 12/15/2012			270,000		278,438
7.50% due 03/15/2015			2,725,000		2,847,625
8.00% due 12/15/2012 (a)			5,005,000		5,230,225
9.625% due 05/01/2011			100,000		111,750
Rural Cellular Corp.
9.875% due 02/01/2010 (a)			4,335,000		4,475,888
UbiquiTel Operating Company
9.875% due 03/01/2011			4,025,000		4,377,187

					22,502,200
Chemicals - 1.18%
Equistar Chemicals LP
10.625% due 05/01/2011			3,300,000		3,547,500
Huntsman ICI Chemicals
10.125% due 07/01/2009	EUR		125,000		163,104
Huntsman International LLC
7.375% due 01/01/2015		$	605,000		600,463
9.875% due 03/01/2009 (a)			904,000		940,160
IMC Global, Inc.
7.30% due 01/15/2028			25,000		22,250
10.875% due 08/01/2013 (a)			875,000		980,000
Lyondell Chemical Company
9.50% due 12/15/2008			839,000		864,170
11.125% due 07/15/2012 (a)			375,000		408,750
Lyondell Chemical Company, Series A
9.625% due 05/01/2007			425,000		433,500
Methanex Corp.
8.75% due 08/15/2012			1,200,000		1,275,000
Montell Finance Company BV
8.10% due 03/15/2027			1,970,000		1,827,175
Westlake Chemical Corp.
6.625% due 01/15/2016 (a)			3,150,000		2,992,500

					14,054,572
Coal - 0.41%
International Coal Group, Inc.
10.25% due 07/15/2014 (a)			2,470,000		2,550,275
Massey Energy Company
6.625% due 11/15/2010			2,360,000		2,324,600

					4,874,875
Commercial Services - 0.40%
DI Finance/DynCorp International LLC, Series B
9.50% due 02/15/2013			4,654,000		4,805,255
Computers & Business Equipment - 0.15%
Seagate Technology Holdings
8.00% due 05/15/2009			1,755,000		1,803,263
Construction & Mining Equipment - 0.09%
Terex Corp.
7.375% due 01/15/2014			1,100,000		1,100,000
Construction Materials - 0.36%
Nortek, Inc.
8.50% due 09/01/2014			4,565,000		4,245,450

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Containers & Glass - 1.91%
Graham Packaging Company, Inc.
9.875% due 10/15/2014 (a)	$	5,095,000	$	4,903,938
Graphic Packaging International Corp.
8.50% due 08/15/2011		3,050,000		3,095,750
9.50% due 08/15/2013 (a)		2,950,000		2,964,750
Owens-Brockway Glass Container, Inc.
6.75% due 12/01/2014 (a)		1,053,000		979,290
7.75% due 05/15/2011		3,350,000		3,425,375
8.25% due 05/15/2013 (a)		550,000		556,875
8.75% due 11/15/2012 (a)		250,000		265,625
Owens-Illinois, Inc.
7.35% due 05/15/2008		200,000		200,000
Owens-Illinois, Inc., Series 2010
7.50% due 05/15/2010 (a)		850,000		841,500
Plastipak Holdings, Inc.
8.50% due 12/15/2015		1,790,000		1,781,050
Radnor Holdings Corp.
11.00% due 03/15/2010		2,350,000		564,000
Stone Container Corp.
8.375% due 07/01/2012		1,505,000		1,433,512
9.75% due 02/01/2011		1,653,000		1,698,457

				22,710,122
Correctional Facilities - 0.52%
Corrections Corp. of America
6.25% due 03/15/2013		5,575,000		5,386,844
6.75% due 01/31/2014		750,000		740,625

				6,127,469
Cosmetics & Toiletries - 0.21%
Playtex Products, Inc.
8.00% due 03/01/2011		2,410,000		2,506,400
Crude Petroleum & Natural Gas - 2.50%
Chaparral Energy, Inc.
8.50% due 12/01/2015		5,150,000		5,188,625
Chesapeake Energy Corp.
6.25% due 01/15/2018		3,225,000		2,975,062
6.375% due 06/15/2015		815,000		774,250
6.50% due 08/15/2017		3,295,000		3,056,112
6.625% due 01/15/2016		1,980,000		1,900,800
6.875% due 01/15/2016		2,080,000		2,017,600
7.00% due 08/15/2014		425,000		420,750
Mariner Energy, Inc.
7.50% due 04/15/2013		1,820,000		1,769,950
PetroHawk Energy Corp.
9.125% due 07/15/2013		2,400,000		2,442,000
Plains Exploration & Production Company
8.75% due 07/01/2012 (a)		1,500,000		1,575,000
Pogo Producing Company
6.875% due 10/01/2017		1,725,000		1,643,063
7.875% due 05/01/2013		1,330,000		1,356,600
8.25% due 04/15/2011 (a)		925,000		952,750
Quicksilver Resources, Inc.
7.125% due 04/01/2016		3,800,000		3,629,000

				29,701,562

The accompanying notes are an integral part of the financial statements. 229

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Domestic Oil - 2.60%
Exco Resources, Inc.
7.25% due 01/15/2011	$	5,650,000	$	5,494,625
Forest Oil Corp.
8.00% due 12/15/2011		2,800,000		2,891,000
Magnum Hunter Resources, Inc.
9.60% due 03/15/2012		4,800,000		5,088,000
Stone Energy Corp.
6.75% due 12/15/2014		3,855,000		3,720,075
8.25% due 12/15/2011		2,550,000		2,562,750
Swift Energy Company
7.625% due 07/15/2011		1,550,000		1,565,500
9.375% due 05/01/2012		3,175,000		3,349,625
Whiting Petroleum Corp.
7.00% due 02/01/2014		1,165,000		1,147,525
7.25% due 05/01/2012		5,185,000		5,120,187

				30,939,287
Educational Services - 0.20%
Education Management LLC
8.75% due 06/01/2014		2,365,000		2,335,438
Electrical Utilities - 2.55%
AES China Generating Company
8.25% due 06/26/2010		655,000		649,229
AES Corp.
7.75% due 03/01/2014 (a)		2,325,000		2,394,750
8.75% due 06/15/2008 (a)		850,000		884,000
8.75% due 05/15/2013		100,000		107,000
8.875% due 02/15/2011		2,520,000		2,696,400
9.00% due 05/15/2015		180,000		194,175
9.375% due 09/15/2010		5,000,000		5,400,000
9.50% due 06/01/2009 (a)		1,775,000		1,890,375
Edison Mission Energy
7.50% due 06/15/2013		540,000		540,000
7.73% due 06/15/2009		2,700,000		2,760,750
7.75% due 06/15/2016		3,140,000		3,140,000
Midwest Generation LLC, Series B
8.56% due 01/02/2016		1,360,724		1,445,769
Mirant Americas Generation LLC
8.30% due 05/01/2011 ^		6,204,000		6,204,000
8.50% due 10/01/2021 ^		407,000		394,790
Orion Power Holdings, Inc.
12.00% due 05/01/2010		1,370,000		1,554,950

				30,256,188
Electronics - 1.13%
L-3 Communications Corp.
7.625% due 06/15/2012		2,575,000		2,639,375
L-3 Communications Corp., Series B
6.375% due 10/15/2015		8,173,000		7,866,512
Spectrum Brands, Inc.
7.375% due 02/01/2015		997,000		772,675
8.50% due 10/01/2013 (a)		2,620,000		2,177,875

				13,456,437
Energy - 1.55%
Inergy, LP
6.875% due 12/15/2014		3,150,000		2,984,625

High Yield Fund (continued)
			Shares or
			Principal
			Amount		Value


CORPORATE BONDS (continued)
Energy (continued)
NRG Energy, Inc.
7.25% due 02/01/2014 (a)		$	2,350,000	$	2,320,625
7.375% due 02/01/2016			10,300,000		10,145,500
Peabody Energy Corp.
6.875% due 03/15/2013			50,000		49,500
Sonat, Inc.
7.625% due 07/15/2011			2,900,000		2,965,250

					18,465,500
Financial Services - 7.04%
BCP Crystal Holdings Corp.
9.625% due 06/15/2014			385,000		417,244
Dow Jones CDX HY, Series 6-T3
8.125% due 06/29/2011			8,820,000		8,814,488
E*Trade Financial Corp.
7.375% due 09/15/2013			2,345,000		2,368,450
7.875% due 12/01/2015			1,005,000		1,045,200
El Paso Performance-Linked Trust
7.75% due 07/15/2011			1,430,000		1,456,813
Ford Motor Credit Company
7.00% due 10/01/2013 (a)			6,770,000		6,318,427
7.875% due 06/15/2010			925,000		909,108
10.4863% due 06/15/2011 (b)			7,400,000		7,825,485
General Motors Acceptance Corp.
6.875% due 08/28/2012			3,730,000		3,611,575
8.00% due 11/01/2031 (a)			22,565,000		22,806,220
Global Cash Access LLC
8.75% due 03/15/2012			4,250,000		4,446,562
Hexion US Finance Corp/Hexion Nova Scotia
Finance ULC
9.00% due 07/15/2014			5,800,000		5,829,000
iPCS, Inc.
11.50% due 05/01/2012			1,275,000		1,434,375
JSG Funding PLC
9.625% due 10/01/2012			3,500,000		3,653,125
10.125% due 10/01/2012	EUR		475,000		663,091
Nell AF SARL
8.375% due 08/15/2015 (a)		$	3,700,000		3,704,625
TNK-BP Finance SA
7.50% due 07/18/2016 (a)			1,220,000		1,266,222
TRAINS HY-1-2006
7.548% due 05/01/2016 (a)			5,360,000		5,315,137
Ucar Finance, Inc.
10.25% due 02/15/2012			1,670,000		1,753,500

					83,638,647
Food & Beverages - 0.57%
Ahold Lease USA, Inc., Series A-1
7.82% due 01/02/2020			0		0
Dole Food, Inc.
8.625% due 05/01/2009			1,700,000		1,674,500
8.75% due 07/15/2013 (a)			425,000		401,625
8.875% due 03/15/2011 (a)			2,625,000		2,559,375
Nutro Products, Inc.
9.23% due 10/15/2013 (b)			540,000		556,200
10.75% due 04/15/2014			1,485,000		1,566,675

					6,758,375

The accompanying notes are an integral part of the financial statements. 230

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Furniture & Fixtures - 0.66%
Norcraft Companies LP
9.00% due 11/01/2011	$	2,450,000	$	2,462,250
Norcraft Holdings Capital
zero coupon, Step up to 9.75% on
09/01/2008 due 09/01/2012		695,000		562,950
Sealy Mattress Company
8.25% due 06/15/2014 (a)		4,775,000		4,822,750

				7,847,950
Gas & Pipeline Utilities - 3.02%
Colorado Interstate Gas Company
6.80% due 11/15/2015		350,000		346,873
Dynegy Holdings, Inc.
7.625% due 10/15/2026		2,700,000		2,382,750
El Paso Corp.
7.75% due 01/15/2032 (a)		3,725,000		3,743,625
7.80% due 08/01/2031		6,775,000		6,791,937
7.875% due 06/15/2012 (a)		5,675,000		5,859,437
El Paso Corp., Series MTN
7.375% due 12/15/2012 (a)		225,000		226,969
El Paso Natural Gas, Series A
7.625% due 08/01/2010		25,000		25,688
Northwest Pipeline Corp.
8.125% due 03/01/2010		75,000		78,000
Transcontinental Gas Pipe Line Corp.
8.875% due 07/15/2012		2,935,000		3,254,181
Williams Companies, Inc.
7.125% due 09/01/2011		50,000		50,750
7.625% due 07/15/2019 (a)		3,050,000		3,095,750
7.875% due 09/01/2021		4,500,000		4,578,750
8.125% due 03/15/2012 (a)		125,000		131,875
8.75% due 03/15/2032		4,975,000		5,360,563

				35,927,148
Healthcare Products - 0.38%
Angiotech Pharmaceuticals, Inc.
7.75% due 04/01/2014		360,000		351,000
Leiner Health Products, Inc.
11.00% due 06/01/2012		4,400,000		4,180,000

				4,531,000
Healthcare Services - 2.01%
DaVita, Inc.
7.25% due 03/15/2015 (a)		6,375,000		6,247,500
Extendicare Health Services, Inc.
6.875% due 05/01/2014		3,200,000		3,344,000
Psychiatric Solutions, Inc.
7.75% due 07/15/2015 (a)		4,850,000		4,680,250
Vanguard Health Holding Company I LLC
zero coupon, Step up to 11.25% on
10/01/2009 due 10/01/2015 (a)		1,915,000		1,378,800
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		8,470,000		8,215,900

				23,866,450
Holdings Companies/Conglomerates - 0.14%
Ashtead Capital, Inc.
9.00% due 08/15/2016		1,647,000		1,679,940

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Homebuilders - 0.91%
Beazer Homes USA, Inc.
6.875% due 07/15/2015	$	300,000	$	267,000
8.125% due 06/15/2016 (a)		3,445,000		3,289,975
8.625% due 05/15/2011		50,000		50,187
K Hovnanian Enterprises, Inc.
6.25% due 01/15/2016 (a)		1,290,000		1,119,075
8.625% due 01/15/2017 (a)		6,230,000		6,082,038

				10,808,275
Hotels & Restaurants - 1.44%
CCM Merger, Inc.
8.00% due 08/01/2013		2,505,000		2,398,538
El Pollo Loco, Inc.
11.75% due 11/15/2013		730,000		815,775
Hilton Hotels Corp.
7.625% due 12/01/2012 (a)		5,350,000		5,656,576
Park Place Entertainment Corp.
7.875% due 03/15/2010		525,000		547,312
8.125% due 05/15/2011		2,250,000		2,368,125
8.875% due 09/15/2008		2,525,000		2,648,094
9.375% due 02/15/2007		700,000		708,750
Starwood Hotels & Resorts Worldwide, Inc.
7.375% due 05/01/2007		175,000		176,531
7.875% due 05/01/2012		1,625,000		1,759,063

				17,078,764
Industrial Machinery - 0.42%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		4,900,000		4,973,500
Industrials - 0.49%
Dynegy Holdings, Inc.
7.125% due 05/15/2018		6,650,000		5,868,625
Insurance - 0.45%
Crum & Forster Holdings Corp.
10.375% due 06/15/2013 (a)		5,400,000		5,373,000
International Oil - 0.03%
Newfield Exploration Company
6.625% due 09/01/2014 (a)		25,000		24,438
Pemex Project Funding Master Trust
9.125% due 10/13/2010		250,000		278,750

				303,188
Internet Content - 0.00%
PSINet, Inc.
11.00% due 08/01/2009 ^		193,291		1,933
PSINet, Inc., Series B
10.00% due 02/15/2005 ^		494,555		4,945

				6,878
Leisure Time - 6.46%
AMC Entertainment, Inc.
11.00% due 02/01/2016 (a)		7,075,000		7,685,219
Boyd Gaming Corp.
6.75% due 04/15/2014 (a)		5,900,000		5,560,750
7.75% due 12/15/2012 (a)		25,000		25,062
Caesars Entertainment, Inc.
7.00% due 04/15/2013		2,475,000		2,554,792

The accompanying notes are an integral part of the financial statements. 231

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Leisure Time (continued)
Choctaw Resort Development Enterprise
7.25% due 11/15/2019	$	675,000	$	661,500
Herbst Gaming, Inc.
7.00% due 11/15/2014 (a)		3,750,000		3,609,375
8.125% due 06/01/2012		800,000		812,000
Inn of the Mountain Gods Resort & Casino
12.00% due 11/15/2010 (a)		4,665,000		4,711,650
Isle of Capri Casinos
7.00% due 03/01/2014		6,575,000		6,246,250
Las Vegas Sands Corp.
6.375% due 02/15/2015		4,050,000		3,766,500
MGM Mirage, Inc.
5.875% due 02/27/2014		1,100,000		1,003,750
6.625% due 07/15/2015		1,550,000		1,458,938
6.75% due 09/01/2012		4,100,000		3,987,250
7.25% due 08/01/2017		825,000		794,062
8.375% due 02/01/2011 (a)		2,800,000		2,880,500
9.75% due 06/01/2007		1,500,000		1,537,500
Mohegan Tribal Gaming Authority
6.875% due 02/15/2015		2,625,000		2,506,875
7.125% due 08/15/2014		3,300,000		3,217,500
Penn National Gaming, Inc.
6.75% due 03/01/2015		5,200,000		5,005,000
6.875% due 12/01/2011		825,000		820,875
Pinnacle Entertainment, Inc.
8.25% due 03/15/2012		2,550,000		2,562,750
8.75% due 10/01/2013 (a)		3,050,000		3,202,500
River Rock Entertainment Authority
9.75% due 11/01/2011		375,000		397,031
Seneca Gaming Corp.
7.25% due 05/01/2012		1,825,000		1,793,062
Station Casinos, Inc.
6.50% due 02/01/2014		500,000		466,250
6.625% due 03/15/2018 (a)		2,500,000		2,231,250
7.75% due 08/15/2016		2,675,000		2,758,594
Warner Music Group
7.375% due 04/15/2014		2,200,000		2,117,500
Wynn Las Vegas LLC
6.625% due 12/01/2014 (a)		2,500,000		2,387,500

				76,761,785
Manufacturing - 0.43%
Jacuzzi Brands, Inc.
9.625% due 07/01/2010		2,390,000		2,533,400
Koppers, Inc.
9.875% due 10/15/2013		2,418,000		2,617,485

				5,150,885
Medical-Hospitals - 2.09%
Genesis Healthcare Corp.
8.00% due 10/15/2013		2,400,000		2,490,000
HCA, Inc, Series MTN
7.75% due 07/15/2036		655,000		487,822
HCA, Inc.
5.50% due 12/01/2009		25,000		24,656
6.30% due 10/01/2012		150,000		125,625
6.375% due 01/15/2015		3,875,000		3,080,625

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Medical-Hospitals (continued)
HCA, Inc. (continued)
6.50% due 02/15/2016 (a)	$	2,100,000	$	1,653,750
7.50% due 12/15/2023		3,050,000		2,330,929
7.69% due 06/15/2025		925,000		714,826
8.36% due 04/15/2024		150,000		120,628
8.75% due 09/01/2010 (a)		600,000		604,500
Tenet Healthcare Corp.
6.875% due 11/15/2031		2,025,000		1,533,937
7.375% due 02/01/2013 (a)		5,125,000		4,561,250
9.25% due 02/01/2015 (b)		1,200,000		1,131,000
9.875% due 07/01/2014 (a)		6,175,000		6,020,625

				24,880,173
Metal & Metal Products - 1.12%
Corporacion Nacional Del Cobre de Chile, Inc.
5.50% due 10/15/2013		575,000		566,375
Metals USA, Inc.
11.125% due 12/01/2015		6,540,000		7,210,350
Mueller Group, Inc.
10.00% due 05/01/2012		1,810,000		1,972,900
Mueller Holdings, Inc.
zero coupon, Step up to 14.75% on
04/15/2009 due 04/15/2014		1,450,000		1,276,000
Novelis, Inc.
7.25% due 02/15/2015 (a)		1,730,000		1,643,500
PNA Group, Inc.
10.75% due 09/01/2016		640,000		654,400

				13,323,525
Mining - 0.10%
Vale Overseas Ltd.
8.25% due 01/17/2034		1,021,000		1,175,682
Office Furnishings & Supplies - 0.36%
Interface, Inc.
9.50% due 02/01/2014		3,075,000		3,159,563
10.375% due 02/01/2010		1,075,000		1,170,406

				4,329,969
Paper - 0.99%
Abitibi-Consolidated, Inc.
8.55% due 08/01/2010 (a)		450,000		444,375
Appleton Papers, Inc.
8.125% due 06/15/2011		1,525,000		1,509,750
Appleton Papers, Inc., Series B
9.75% due 06/15/2014		3,465,000		3,421,687
NewPage Corp.
11.7388% due 05/01/2012 (b)		985,000		1,063,800
12.00% due 05/01/2013 (a)		1,210,000		1,249,325
P.H. Glatfelter
7.125% due 05/01/2016 (a)		940,000		926,641
Smurfit Capital Funding PLC
7.50% due 11/20/2025		750,000		682,500
Verso Paper Holdings LLC and Verso Paper, Inc.
9.125% due 08/01/2014		1,210,000		1,203,950
11.375% due 08/01/2016 (a)		1,295,000		1,282,050

				11,784,078

The accompanying notes are an integral part of the financial statements. 232

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Petroleum Services - 1.28%
Belden & Blake Corp.
8.75% due 07/15/2012	$	5,215,000	$	5,345,375
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015 (a)		1,140,000		1,134,300
Dresser-Rand Group, Inc.
7.375% due 11/01/2014		4,375,000		4,210,938
Enterprise Products Operating LP
8.375% due 08/01/2066 (b)		2,480,000		2,585,326
Grant Prideco, Inc., Series B
6.125% due 08/15/2015		1,250,000		1,187,500
Pride International, Inc.
7.375% due 07/15/2014		595,000		605,412
SESI LLC
6.875% due 06/01/2014		195,000		191,100

				15,259,951

Pharmaceuticals - 0.69%
Omnicare, Inc.
6.875% due 12/15/2015 (a)		2,900,000		2,773,125
Valeant Pharmaceuticals International
7.00% due 12/15/2011		5,825,000		5,475,500

				8,248,625

Publishing - 1.64%
CBD Media Holdings, LLC
9.25% due 07/15/2012		2,625,000		2,572,500
CBD Media, Inc.
8.625% due 06/01/2011		1,750,000		1,715,000
Dex Media East LLC
12.125% due 11/15/2012 (a)		575,000		641,125
Dex Media West LLC
8.50% due 08/15/2010		50,000		51,250
9.875% due 08/15/2013		1,700,000		1,825,375
Dex Media, Inc.
zero coupon, Step up to 9.00% on
11/15/2008 due 11/15/2013 (a)		4,975,000		4,141,687
zero coupon, Step up to 9.00% on
11/15/2008 due 11/15/2013 (a)		3,425,000		2,851,313
8.00% due 11/15/2013		25,000		24,875
Houghton Mifflin Company
zero coupon, Step up to 11.5% on
10/15/2008 due 10/15/2013		3,180,000		2,663,250
Primedia, Inc.
8.875% due 05/15/2011 (a)		3,035,000		2,943,950

				19,430,325

Railroads & Equipment - 0.41%
Grupo Transportacion Ferroviaria Mexicana,
S.A. de C.V.
9.375% due 05/01/2012 (a)		3,765,000		3,986,194
10.25% due 06/15/2007		580,000		591,600
12.50% due 06/15/2012		205,000		227,550

				4,805,344

Real Estate - 1.63%
Felcor Lodging LP, REIT
9.00% due 06/01/2011		3,925,000		4,150,687

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Real Estate (continued)
Forest City Enterprises
7.625% due 06/01/2015	$	145,000		146,087
7.625% due 06/01/2015	$	145,000	$	146,087
Host Marriott LP, REIT
6.375% due 03/15/2015		2,125,000		2,040,000
7.125% due 11/01/2013		5,550,000		5,605,500
9.50% due 01/15/2007		1,475,000		1,491,594
Host Marriott LP, Series Q, REIT
6.75% due 06/01/2016 (a)		3,675,000		3,564,750
Kimball Hill, Inc.
10.50% due 12/15/2012		1,885,000		1,616,388
Ventas Realty LP/ Capital Corp.
6.50% due 06/01/2016		800,000		788,000

				19,403,006
Retail - 0.35%
Brookstone Company, Inc.
12.00% due 10/15/2012		620,000		564,200
NationsRent, Inc.
9.50% due 05/01/2015 (a)		150,000		176,208
Suburban Propane Partners LP
6.875% due 12/15/2013		3,515,000		3,365,613

				4,106,021
Retail Trade - 1.04%
American Greetings Corp.
7.375% due 06/01/2016		375,000		377,344
Blockbuster, Inc.
9.00% due 09/01/2012 (a)		2,335,000		2,159,875
FTD, Inc.
7.75% due 02/15/2014		2,394,000		2,334,150
Neiman Marcus Group, Inc.
10.375% due 10/15/2015 (a)		5,625,000		6,018,750
Saks, Inc.
9.875% due 10/01/2011		1,375,000		1,488,437

				12,378,556
Sanitary Services - 0.93%
Allied Waste North America, Inc.
6.375% due 04/15/2011 (a)		1,725,000		1,673,250
7.25% due 03/15/2015 (a)		3,000,000		2,947,500
7.875% due 04/15/2013		325,000		329,062
8.50% due 12/01/2008		950,000		988,000
Allied Waste North America, Inc., Series B
7.375% due 04/15/2014 (a)		810,000		791,775
9.25% due 09/01/2012		4,025,000		4,306,750

				11,036,337
Semiconductors - 0.43%
Amkor Technology, Inc.
2.50% due 05/15/2011		2,660,000		2,257,675
MagnaChip Semiconductor SA
8.00% due 12/15/2014 (a)		4,435,000		2,838,400

				5,096,075
Software - 0.48%
UGS Capital Corp. II
10.38% due 06/01/2011 (b)		3,410,000		3,435,575

The accompanying notes are an integral part of the financial statements. 233

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

High Yield Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Software (continued)
UGS Corp.
10.00% due 06/01/2012	$	2,075,000	$	2,230,625

				5,666,200
Steel - 0.77%
CitiSteel USA, Inc.
12.49% due 09/01/2010 (b)		1,235,000		1,268,963
15.00% due 10/01/2010 (b)		980,000		1,048,600
International Steel Group, Inc.
6.50% due 04/15/2014		2,275,000		2,161,250
IPSCO, Inc.
8.75% due 06/01/2013		1,260,000		1,345,050
RathGibson, Inc.
11.25% due 02/15/2014		3,200,000		3,296,000

				9,119,863
Telecommunications Equipment &
Services - 4.50%
Cincinnati Bell Telephone Company
6.30% due 12/01/2028		255,000		218,025
Citizens Communications Company
9.00% due 08/15/2031 (a)		2,940,000		3,101,700
9.25% due 05/15/2011		100,000		109,375
Hawaiian Telcom Communications, Inc., Series B
12.50% due 05/01/2015 (a)		4,330,000		4,427,425
Insight Midwest LP
9.75% due 10/01/2009		1,400,000		1,424,500
10.50% due 11/01/2010		2,650,000		2,749,375
Intelsat Bermuda Ltd.
9.25% due 06/15/2016		3,835,000		3,988,400
11.25% due 06/15/2016		6,980,000		7,233,025
Intelsat Ltd.
7.625% due 04/15/2012 (a)		3,910,000		3,391,925
Lucent Technologies, Inc.
6.45% due 03/15/2029 (a)		12,975,000		11,061,187
PanAmSat Corp.
9.00% due 08/15/2014		1,425,000		1,449,938
United States West Communications, Inc.
6.875% due 09/15/2033 (a)		15,086,000		13,501,970
Wind Acquisition Finance SA
10.75% due 12/01/2015		700,000		760,375

				53,417,220
Telephone - 2.06%
Cincinnati Bell, Inc.
7.00% due 02/15/2015		4,210,000		4,104,750
8.375% due 01/15/2014 (a)		615,000		617,306
Nordic Telephone Company Holdings
8.875% due 05/01/2016		2,220,000		2,319,900
NTL Cable PLC
9.125% due 08/15/2016 (a)		2,730,000		2,825,550
Qwest Communications International, Inc.
7.25% due 02/15/2011		25,000		24,781
7.50% due 02/15/2014 (a)		1,196,000		1,185,535
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014 (a)		4,333,000		4,295,086
Qwest Corp.
8.875% due 03/15/2012		2,105,000		2,278,663

High Yield Fund (continued)
			Shares or
			Principal
			Amount		Value


CORPORATE BONDS (continued)
Telephone (continued)
Telefonos de Mexico SA de CV
8.75% due 01/31/2016	MXN		9,000,000	$	816,345
Windstream Corp.
8.625% due 08/01/2016		$	5,685,000		6,011,888

					24,479,804
Transportation - 0.39%
Gulfmark Offshore, Inc.
7.75% due 07/15/2014 (b)			750,000		746,250
OMI Corp.
7.625% due 12/01/2013			3,850,000		3,850,000

					4,596,250

TOTAL CORPORATE BONDS (Cost $996,044,421)				$	986,046,997


SHORT TERM INVESTMENTS - 24.00%
State Street Navigator Securities
Lending Prime Portfolio (c)		$	285,165,979 $		285,165,979

TOTAL SHORT TERM INVESTMENTS
(Cost $285,165,979)				$	285,165,979


REPURCHASE AGREEMENTS - 2.79%
Merrill Lynch Tri-Party Repurchase
Agreement dated 08/31/2006 at
5.23% to be repurchased at
$33,204,823 on 9/1/2006,
collateralized by $34,420,000 U.S.
Treasury Notes, 2.00% due
01/15/2026 (valued at
$33,955,173, including interest)		$	33,200,000	$	33,200,000

TOTAL REPURCHASE AGREEMENTS
(Cost $33,200,000)				$	33,200,000

Total Investments (High Yield Fund)
(Cost $1,444,087,968) - 120.89%				$	1,436,252,652
Liabilities in Excess of Other Assets - (20.89)%					(248,157,152)

TOTAL NET ASSETS - 100.00%				$	1,188,095,500



International Equity Index Fund
			Shares or
			Principal
			Amount		Value


COMMON STOCKS - 94.67%
Argentina - 0.03%
Petrobras Energia Participaciones SA, ADR,
B Shares *			2,810	$	29,421
Siderar SA, Class A Shares, ADR			603		33,645
Telecom Argentina SA, ADR, B Shares * (a)			2,416		33,220

					96,286
Australia - 4.16%
ABC Learning Centres, Ltd. (a)			7,100		35,154
Alinta, Ltd. (a)			5,481		46,080
Alumina, Ltd.			23,651		114,575
Amcor, Ltd.			19,226		98,419

The accompanying notes are an integral part of the financial statements. 234

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Australia (continued)
AMP, Ltd. (a)	38,484	$	265,703
Ansell, Ltd. (a)	3,841		27,603
APN News & Media, Ltd. (a)	5,322		20,260
Aristocrat Leisure, Ltd. (a)	7,498		74,935
Australia and New Zealand Bank Group, Ltd. (a)	37,891		787,717
Australia Gas & Light Company, Ltd. (a)	9,352		143,906
Australian Stock Exchange, Ltd. (a)	3,611		90,920
Axa Asia Pacific Holdings, Ltd. (a)	17,831		89,101
Babcock & Brown, Ltd. (a)	4,314		66,152
BHP Billiton, Ltd. (a)	72,419		1,530,382
Billabong International, Ltd. (a)	3,737		42,194
Bluescope Steel, Ltd. (a)	14,575		75,500
Boral, Ltd.	12,060		62,564
Brambles Industries, Ltd. (a)	20,757		189,234
Caltex Australia, Ltd.	2,589		45,211
Centro Properties Group, Ltd.	16,936		98,972
CFS Gandel Retail Trust	28,971		41,994
CFS Retail Property Trust *	61		93
Challenger Financial Services Group, Ltd. (a)	7,777		20,825
Coca-Cola Amatil, Ltd. (a)	11,100		55,467
Cochlear, Ltd. (a)	1,084		41,597
Coles Myer, Ltd. (a)	25,099		267,881
Commonwealth Bank of Australia, Ltd. (a)	26,701		931,325
Commonwealth Property Office Fund, Ltd.	28,338		30,699
Computershare, Ltd.	9,855		58,643
CSL, Ltd. (a)	3,762		145,941
CSR, Ltd.	19,679		47,291
DB RREEF Trust	51,702		61,729
DCA Group, Ltd. (a)	7,794		15,043
Downer EDI, Ltd. (a)	6,788		29,155
Foster's Group, Ltd.	41,237		187,185
Futuris Corp., Ltd.	10,913		17,817
General Property Trust, Ltd.	41,020		143,014
Goodman Fielder, Ltd. *	23,651		38,252
Harvey Norman Holding, Ltd. (a)	10,391		27,270
Iluka Resources, Ltd. (a)	4,497		25,079
ING Industrial Fund (a)	14,827		28,845
Investa Property Group, Ltd.	31,699		57,314
James Hardie Industries, Ltd.	9,513		48,625
John Fairfax Holdings, Ltd. (a)	20,471		63,094
Leighton Holdings, Ltd. (a)	2,745		41,485
Lend Lease Corp.	7,477		89,613
Lion Nathan, Ltd.	6,742		41,045
Macquarie Airports, Ltd.	15,284		34,748
Macquarie Bank, Ltd. (a)	4,996		246,982
Macquarie Communications
Infrastructure Group, Ltd. (a)	6,747		31,040
Macquarie Goodman Group, Ltd. (a)	28,352		137,132
Macquarie Infrastructure Group, Ltd.	52,459		126,065
Macquarie Office Trust (a)	41,584		45,366
Mayne Nickless, Ltd. (a)	12,345		30,609
Mayne Pharma, Ltd. * (a)	12,243		28,674

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Australia (continued)
Mirvac Group, Ltd.	19,609	$	68,366
Multiplex Group, Ltd. (a)	11,609		29,935
National Australia Bank, Ltd. (a)	33,202		919,966
Newcrest Mining, Ltd.	7,166		106,605
NRMA Insurance Group, Ltd. (a)	33,091		135,566
OneSteel, Ltd. (a)	10,874		35,340
Orica, Ltd.	6,427		110,174
Origin Energy, Ltd. (a)	17,331		88,190
Pacific Brands, Ltd. (a)	9,227		17,035
Paladin Resources, Ltd. *	9,622		38,905
PaperlinX, Ltd. (a)	8,216		21,562
Perpetual Trust of Australia, Ltd. (a)	843		46,832
Publishing & Broadcasting, Ltd.	2,590		36,278
Qantas Airways, Ltd., ADR	20,871		54,773
QBE Insurance Group, Ltd.	16,562		301,475
Rinker Group, Ltd.	18,800		197,927
Rio Tinto, Ltd. (a)	6,009		334,422
Santos, Ltd.	12,295		104,961
Sonic Healthcare, Ltd. (a)	5,460		50,360
Stockland Company, Ltd.	28,490		157,362
Suncorp-Metway, Ltd. (a)	11,334		177,258
Sydney Roads Group *	17,413		13,749
TABCORP Holdings, Ltd. (a)	11,112		128,347
Telstra Corp., Ltd. (a)	43,155		118,523
Toll Holdings, Ltd.	11,111		121,130
Transurban Group, Ltd. * (a)	16,296		86,903
UNiTAB, Ltd.	2,327		24,943
Wesfarmers, Ltd. (a)	7,810		200,138
Westfield Group (a)	30,727		428,275
Westpac Banking Corp., Ltd.	37,902		675,754
Woodside Petroleum, Ltd.	9,827		316,824
Woolworths, Ltd. (a)	24,018		379,293
WorleyParsons, Ltd.	3,104		42,814
Zinifex, Ltd.	10,616		96,377

			12,807,881
Austria - 0.42%
Andritz AG	192		30,245
BetandWin.com Interactive
Entertainment AG * (a)	440		16,351
Bohler Uddeholm AG	860		46,206
Erste Bank der Oesterreichischen
Sparkassen AG	3,778		228,118
Flughafen Wien AG (a)	200		16,193
Immoeast Immobilien Anlagen AG *	5,431		63,918
Immofinanz Immobilien Anlage AG *	9,003		104,230
Mayr-Melnhof Karton AG	80		14,020
Meinl European Land, Ltd. *	3,030		65,313
Oesterreichische Elektrizitaets AG, Class A	1,630		81,989
OMV AG	3,491		185,869
Raiffeisen International Bank Holding AG (a)	747		67,274
RHI AG *	486		16,668
Telekom Austria AG	7,407		181,170

The accompanying notes are an integral part of the financial statements. 235

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Austria (continued)
Voestalpine AG	1,664	$	62,966
Wiener Staedtische Allgemeine Versicherung
AG	661		40,453
Wienerberger Baustoffindustrie AG	1,326		63,560

			1,284,543
Belgium - 1.00%
Agfa Gevaert NV (a)	2,039		47,760
Barco N.V.	216		19,038
Bekaert SA	272		26,653
Belgacom SA	3,526		124,358
Cofinimmo SA	142		24,777
Colruyt SA (a)	349		59,245
Compagnie Maritime Belge SA (a)	338		11,428
Delhaize Group (a)	1,645		125,105
Dexia	11,945		306,377
Euronav NV (a)	320		11,085
Fortis Group SA (a)	25,210		979,752
Groupe Bruxelles Lambert SA	1,595		167,211
Interbrew	3,929		203,711
KBC Bancassurance Holding NV	3,949		424,600
Mobistar SA	691		56,750
Omega Pharma SA	422		24,288
SA D'Ieteren Trading NV (a)	53		17,662
Solvay SA	1,373		166,069
Suez SA (a)	2,066		88,089
UCB SA	1,898		111,106
Union Miniere SA	512		74,340

			3,069,404
Bermuda - 0.24%
Brilliance China Automotive Holdings, Ltd. *	37,709		5,722
Central European Media Enterprises, Ltd. *	542		33,120
Cheung Kong Infrastructure Holdings, Ltd.	9,000		28,584
Cosco Pacific, Ltd.	22,855		51,194
Credicorp, Ltd., ADR	967		35,972
Esprit Holdings, Ltd.	20,500		170,549
Frontline, Ltd. (a)	1,050		42,853
Giordano International, Ltd.	28,000		15,878
Hopson Development Holdings, Ltd., GDR	12,000		26,293
Johnson Electronic Holdings, Ltd.	27,500		20,509
Kerry Properties, Ltd.	9,613		36,279
Li & Fung, Ltd.	41,600		99,173
Noble Group, Ltd. (a)	17,000		11,670
Orient Overseas International, Ltd.	4,000		16,150
SeaDrill, Ltd., GDR *	4,308		54,348
Sinochem Hong Kong Holding, Ltd., GDR	32,000		11,727
Texwinca Holdings, Ltd.	12,000		7,869
TPV Technology, Ltd.	25,211		26,907
Yue Yuen Industrial Holdings, Ltd.	9,500		27,485

			722,282
Brazil - 0.93%
All America Latina Logistica SA	700		58,855

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Brazil (continued)
Aracruz Celulose SA, ADR (a)	845	$	43,881
Banco Nossa Caixa SA	732		14,710
Brasil Telecom Participacoes SA, ADR	905		27,331
Brasil Telecom Participacoes SA *	1,400,000		13,694
Centrais Eletricas Brasileiras SA, ADR, B
Shares (a)	2,071		20,841
Centrais Eletricas Brasileiras SA, ADR	3,447		37,915
Centrais Eletricas Brasileiras SA	700,000		15,303
Cia Brasileira De Distribuicao Grupo Pao de
Acucar, ADR (a)	436		12,016
Cia de Bebidas das Americas, ADR	900		35,280
Cia de Concessoes Rodoviarias, ADR	2,900		28,299
Cia de Saneamento Basico do Estado de Sao
Paulo *	310,000		34,033
Cia Energetica De Minas Gerais, ADR (a)	1,976		81,984
Cia Vale do Rio Doce	4,500		96,695
Companhia Siderurgica Nacional SA, ADR (a)	2,542		74,531
Companhia Vale Do Rio Doce, ADR	9,634		206,553
Companhia Vale Do Rio Doce, SADR	13,682		246,276
Cosan SA Industria e Comercio *	1,129		59,595
Cyrela Brazil Realty SA	2,000		35,315
Diagnosticos da America SA *	800		15,359
EDP - Energias do Brasil SA	1,100		13,925
Empresa Brasileira de Aeronautica SA *	2,300		22,551
Empresa Brasileira de Aeronautica SA, ADR	1,575		60,795
Gafisa SA *	1,380		18,050
Gerdau SA, SADR (a)	6,241		90,619
Gerdau SA	1,308		15,526
Lojas Renner SA	400		23,840
Natura Cosmeticos SA	1,700		21,775
Perdigao SA	1,500		15,765
Petroleo Brasileiro SA, ADR, Petro	5,916		476,948
Petroleo Brasileiro SA, ADR	4,276		383,386
Petroleo Brasileiro SA	6,800		150,945
Souza Cruz SA	1,200		19,647
Submarino SA *	1,035		21,176
Tele Norte Leste Participacoes SA, ADR	5,457		70,341
Tele Norte Leste Participacoes SA	1,400		35,249
Tractebel Energia SA	2,100		18,933
Unibanco - Uniao de Bancos Brasileiros SA *	5,400		38,745
Unibanco - Uniao De Bancos
Brasileiros SA, ADR *	1,717		124,225
Usinas Siderurgicas de Minas Gerais SA,
ADR * (a)	1,567		49,478
Vivo Participacoes SA, ADR * (a)	3,208		10,266
Votorantim Celulose e Papel SA, SADR (a)	1,189		19,179

			2,859,830
Canada - 6.24%
Aber Diamond Corp.	1,400		50,426
Abitibi Consolidated, Inc.	7,100		19,247
ACE Aviation Holdings, Inc. *	1,500		40,257
Agnico-Eagle Mines, Ltd.	2,400		91,042

The accompanying notes are an integral part of the financial statements. 236

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Canada (continued)
Agrium, Inc.	2,600	$	60,310
Alcan Aluminum, Ltd. USD	7,700		345,879
Algoma Steel, Inc. *	800		26,639
Alimentation Couche Tard, Inc., ADR	2,800		59,079
Angiotech Pharmaceuticals, Inc. *	1,700		20,201
ARC Energy Trust, ADR	2,000		52,609
Astral Media. Inc.	1,200		41,281
ATI Technologies, Inc. *	5,700		122,020
Ballard Power Systems, Inc. *	200		1,225
Bank Nova Scotia Halifax	20,500		875,647
Bank of Montreal	10,400		628,896
Barrick Gold Corp.	17,708		592,053
BCE, Inc.	5,673		141,332
Bema Gold Corp. *	9,100		49,256
Biovail Corp.	3,200		52,107
Bombardier, Inc. *	32,100		97,462
Brookfield Asset Management, Inc.	7,450		332,562
Brookfield Properties Corp.	2,600		91,182
CAE, Inc.	4,900		41,931
Cameco Corp.	7,500		306,601
Canadian Imperial Bank of Commerce	7,000		508,119
Canadian National Railway Company	11,100		472,927
Canadian Natural Resources, Ltd.	11,100		582,057
Canadian Oil Sands Trust, ADR	4,900		149,659
Canadian Pacific Railway, Ltd.	3,400		166,828
Canadian Tire Corp., Ltd.	1,600		100,194
Canetic Resources Trust	4,000		82,158
Canfor Corp. *	1,800		18,494
Celestica, Inc. *	3,800		36,398
CGI Group, Inc. *	5,300		33,525
Cognos, Inc. *	1,700		54,534
Cott Corp. *	1,900		32,140
Domtar, Inc. *	3,900		24,845
Duvernay Oil Corp, ADR *	1,000		37,248
Eldorado Gold Corp. *	7,900		39,048
Enbridge, Inc.	7,200		236,758
EnCana Corp. - CAD	17,500		917,183
Ensign Energy Services, Inc., ADR	2,600		53,685
Fairfax Financial Holdings, Ltd.	400		48,127
Finning International, Inc.	1,700		61,032
First Calgary Petroleums, Ltd., ADR *	4,400		39,680
First Quantum Minerals, Ltd., ADR	1,300		70,600
Fortis, Inc.	2,100		47,668
Four Seasons Hotels, Inc.	500		31,541
George Weston, Ltd.	1,100		77,929
Gildan Activewear, Inc. *	1,200		60,214
Glamis Gold, Ltd. *	3,400		155,767
Goldcorp, Inc.	7,600		209,804
Great-West Lifeco, Inc.	5,500		145,471
Harvest Energy Trust	1,900		58,804
Husky Energy, Inc.	2,700		186,596
IGM Financial, Inc.	2,600		116,767

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Canada (continued)
Imperial Oil, Ltd.	7,200	$	270,590
Inco, Ltd.	4,000		311,535
Intrawest Corp.	900		31,140
Ipsco, Inc.	1,000		92,025
Ivanhoe Mines, Ltd. *	4,300		26,927
Jean Coutu Group, Inc.	2,800		30,590
Kinross Gold Corp. *	7,700		107,848
Loblaw Companies, Ltd.	2,400		111,363
Magna International, Inc.	2,300		164,854
Manulife Financial Corp.	32,800		1,067,597
MDS, Inc.	2,800		56,397
Meridian Gold, Inc. *	2,100		62,033
Methanex Corp.	2,200		52,403
MI Developments, Inc.	900		30,855
National Bank of Canada	3,400		184,248
Nexen, Inc.	5,500		320,015
Niko Resources, Ltd.	800		45,716
Nortel Networks Corp. *	89,400		186,612
Nova Chemicals Corp.	1,600		50,965
Novelis, Inc.	1,500		31,284
Onex Corp.	2,300		51,210
Open Text Corp. *	800		13,027
OPTI Canada, Inc. *	3,200		58,786
Pan American Silver Corp *	1,400		32,133
Penn West Energy Trust, ADR	1,600		66,608
Penn West Energy Trust	4,980		206,778
Petro-Canada	10,600		452,103
Potash Corp. of Saskatchewan, Inc.	2,200		216,074
Power Corporation Of Canada	6,900		202,514
Power Financial Corp.	5,100		159,316
Precision Drilling Trust, ADR	1,200		43,634
PrimeWest Energy Trust	1,600		48,738
Provident Energy Trust *	3,800		49,790
QLT, Inc. *	1,600		12,232
Quebecor World, Inc.	1,600		17,812
Research In Motion, Ltd. *	3,500		288,659
Ritchie Bros. Auctioneers, Inc.	700		34,284
Rogers Communications, Inc., Class B	4,700		242,082
RONA, Inc. *	2,200		43,239
Royal Bank of Canada	26,800		1,186,160
Saputo, Inc.	900		30,701
Shaw Communications, Inc.	3,600		108,002
Shell Canada, Ltd.	4,200		136,249
Shoppers Drug Mart Corp.	4,200		176,972
SNC-Lavalin Group, Inc.	3,000		82,655
Sun Life Financial, Inc.	12,000		493,598
Suncor Energy, Inc.	9,500		735,260
Talisman Energy, Inc.	23,200		406,705
Teck Cominco, Ltd.	4,200		279,330
Telus Corp. - Non Voting Shares	3,600		171,371
Telus Corp.	1,200		58,826
Thomson Corp.	4,700		188,994

The accompanying notes are an integral part of the financial statements. 237

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Canada (continued)
TransAlta Corp.	4,200	$	92,148
Trans-Canada Corp.	10,200		331,259
Trican Well Service, Ltd.	2,300		46,825
TSX Group, Inc.	1,300		58,266
UTS Energy Corp., ADR *	8,500		36,484
Western Oil Sands, Inc. *	2,900		77,305
Yamana Gold, Inc. *	5,100		52,168

			19,218,338
Cayman Islands - 0.09%
Agile Property Holdings, Ltd.	21,211		15,328
ASM Pacific Technology, Ltd.	3,500		18,137
China Resources Land, Ltd.	21,211		12,819
Foxconn International Holdings, Ltd. *	45,000		119,488
Hutchison Telecommunications
International, Ltd. *	29,000		51,310
Kingboard Chemical Holdings, Ltd.	12,000		38,730
Xinao Gas Holdings, Ltd., GDR	12,000		11,418

			267,230
Chile - 0.23%
Banco Santander Chile SA, ADR (a)	2,667		116,175
Cia Cervecerias Unidas SA, ADR	457		11,361
Compania de Telecomunicaciones de Chile
SA, ADR (a)	7,734		56,768
Distribucion y Servicio D&S SA, ADR (a)	966		15,340
Embotelladora Andina SA, ADR, Series A	915		11,941
Embotelladora Andina SA, ADR, Series B	1,006		14,627
Empresa Nacional de Electricidad SA, ADR	6,419		183,776
Enersis SA, ADR	15,435		190,777
Sociedad Quimica y Minera de
Chile SA, ADR, B Shares (a)	717		78,870
Vina Concha Y Toro SA, ADR (a)	911		26,191

			705,826
China - 0.72%
Air China, Ltd., Class H	52,066		18,612
Aluminum Corp. of China, Ltd.	66,780		47,743
Angang New Steel Company, Ltd. Class H	20,141		16,523
Bank of China, Ltd., H Shares *	467,500		203,184
Bank of Communications Company, Ltd.,
Class H	121,879		76,949
Beijing Capital International Airport Company,
Ltd., Class H	25,211		16,468
Beijing Datang Power Generation
Company , Ltd., Class H	31,568		21,108
BYD Company, Ltd., H Shares *	2,446		5,536
Chaoda Modern Agriculture Holdings, Ltd.	31,925		16,092
China Construction Bank	519,118		224,950
China Life Insurance Company, Ltd.	148,376		263,289
China Mengniu Dairy Company, Ltd.	19,498		24,971
China Overseas Land & Investment, Ltd.	68,921		47,679
China Petroleum & Chemical Corp., Class H	352,030		209,128
China Shipping Container Lines Company, Ltd.	38,888		8,751

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
China (continued)
China Shipping Development Company, Ltd.,
Class H	29,568	$	26,310
China Telecom Corp., Ltd.	294,396		98,801
China Travel International Investment Hong
Kong, Ltd.	57,709		14,099
COSCO Holdings	29,460		13,334
Dongfeng Motor Group Company, Ltd. *	52,780		19,342
Guangdong Investment, Ltd.	52,780		20,360
Guangshen Railway Company, Ltd., Class H	33,211		13,537
Guangzhou R&F Properties Company, Ltd.	3,400		17,050
Huadian Power International Corp., Ltd.,
Class H	21,211		5,264
Huaneng Power International, Inc., Class H	64,564		42,921
Hunan Non-Ferrous Metal Corp., Ltd *	26,000		9,428
Jiangsu Expressway, Ltd.	22,855		13,342
Jiangxi Copper Company, Ltd., Class H	29,925		28,398
Lenovo Group, Ltd.	74,564		31,160
Maanshan Iron & Steel Company, Ltd., Class
H	31,925		9,934
PetroChina Company, Ltd., Class H	397,739		448,527
PICC Property & Casualty Company, Ltd.,
Class H	44,780		15,316
Qingling Motors Co.	855		119
Shanghai Electric Group Company, Ltd.	63,136		20,702
Shanghai Forte Land Company	15,211		4,909
Shenzhen Expressway Company, Ltd.	12,141		6,276
Sinopec Shanghai Petrochemical
Company, Ltd., H Shares	50,066		23,562
Sinopec Yizheng Chemical Fibre
Company, Ltd. *	21,925		4,370
Sinotrans, Ltd., Class H	35,390		11,195
Solomon Systech International, Ltd.	34,000		7,214
Tsingtao Brewery Company, Ltd., Series H	5,070		6,063
Weichai Power Company, Ltd.	2,357		5,783
Yanzhou Coal Mining Company, Ltd., Class H	43,210		30,503
Zhejiang Expressway Company, Ltd., Class H	32,282		20,755
Zijin Mining Group, Ltd.	70,149		33,194
ZTE Corp., Class H	2,557		8,746

			2,211,497
Colombia - 0.03%
BanColombia SA, ADR (a)	3,207		93,324
Czech Republic - 0.10%
Cesky Telecom AS *	2,268		49,790
CEZ AS	4,171		155,474
Komercni Banka AS	306		45,431
Philip Morris CR AS	14		5,887
Unipetrol AS *	1,460		13,495
Zentiva NV	460		24,444

			294,521
Denmark - 0.58%
A P Moller- Maersk A/S, Series B (a)	23		191,292
AS Det Ostasiatiske Kompagni	375		16,029

The accompanying notes are an integral part of the financial statements. 238

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Denmark (continued)
Bang & Olufsen AS - B Series (a)	225	$	23,035
Carlsberg AS, B Shares	700		54,318
Codan AS	300		21,607
Coloplast AS (a)	507		38,429
Dampskibsselskabet Torm AS (a)	300		15,665
Danisco AS (a)	1,000		74,253
Danske Bank AS	8,600		330,350
DSV AS	400		64,753
FLS Industries AS, B Shares	900		38,893
GN Store Nord AS (a)	4,500		66,172
H. Lundbeck AS (a)	1,100		25,324
Jyske Bank *	1,246		71,793
NKT Holdings AS	400		26,237
Novo Nordisk AS, Class B	200		14,765
Novo Nordisk AS	4,800		354,357
Novozymes AS, B Shares (a)	1,050		73,735
Sydbank AS	1,320		49,347
Topdanmark AS *	400		57,276
TrygVesta AS (a)	544		33,397
Vestas Wind Systems AS *	3,800		106,218
William Demant Holdings AS * (a)	500		36,912

			1,784,157
Finland - 1.18%
Amer Sports Oyj	1,550		34,402
Cargotec Corp. Oyj, B Shares	736		31,871
Elisa Oyj, A Shares	3,300		66,827
Fortum Corp. Oyj	9,400		252,524
KCI Konecranes Oyj	1,150		22,803
Kesko Oyj	1,400		59,173
Kone Corp. Oyj	1,592		72,135
Metra Oyj, B Shares	1,300		53,649
Metso Oyj	2,700		100,303
Neste Oil OYJ	2,676		84,213
Nokia AB Oyj	87,900		1,838,493
Nokian Renkaat Oyj (a)	2,100		36,723
OKO Bank - A	2,000		32,442
Oriola-KD OYJ *	1,700		4,089
Orion Oyj * (a)	1,700		30,946
Outokumpu Oyj	2,200		55,865
Rautaruukki Oyj	1,800		52,500
Sampo Oyj, A Shares	9,100		188,005
SanomaWSOY Oyj (a)	1,320		32,725
Stora Enso Oyj, R Shares	12,900		195,718
TietoEnator Oyj (a)	1,660		47,695
UPM-Kymmene Oyj	11,100		262,694
Uponor Oyj	1,200		32,606
YIT Oyj	2,596		56,290

			3,644,691
France - 7.50%
Accor SA (a)	4,169		266,393
Air France KLM	2,241		61,063

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
France (continued)
Alcatel SA * (a)	28,635	$	358,621
Alstom RGPT * (a)	2,207		207,795
Arkema * (a)	1,122		43,677
Atos Origin SA *	1,390		72,887
AXA Group	34,471		1,278,814
BNP Paribas SA (a)	17,233		1,828,659
Bouygues SA (a)	4,249		223,400
Business Objects SA *	2,146		59,819
Cap Gemini SA (a)	2,571		140,636
Carrefour SA (a)	12,385		763,024
Casino Guich-Perrachon SA (a)	953		81,620
CNP Assurances SA (a)	907		93,577
Compagnie De Saint Gobain SA (a)	6,543		485,049
Compagnie Generale des Etablissements
Michelin, Class B	2,871		194,655
Credit Agricole S.A. (a)	12,609		511,484
Dassault Systemes SA	1,091		60,320
Essilor International SA (a)	2,084		215,409
European Aeronautic Defence &
Space Company (a)	6,902		207,844
France Telecom SA	35,454		751,525
Gaz de France (a)	3,979		147,818
Gecina SA	184		23,962
Groupe Danone SA	4,926		676,790
Hermes International SA (a)	1,314		111,278
Imerys SA	610		46,352
Klepierre SA	445		62,448
Lafarge SA (a)	3,114		400,350
Lagardere S.C.A. (a)	2,472		180,884
L'Air Liquide SA (a)	2,502		527,153
L'Oreal SA (a)	5,944		621,236
LVMH Moet Hennessy SA	5,154		529,768
M6-Metropole Television (a)	1,462		45,653
Neopost SA	613		71,556
PagesJaunes Groupe SA	2,409		69,000
Pernod-Ricard SA (a)	1,532		333,756
Peugeot SA (a)	3,126		176,233
Pinault-Printemps-Redoute SA (a)	1,331		183,549
Publicis Groupe SA (a)	2,807		110,670
Renault Regie Nationale SA (a)	3,903		453,856
Safran SA (a)	3,386		73,766
Sanofi-Aventis	21,037		1,885,156
Schneider Electric SA (a)	4,760		506,928
SCOR (a)	16,126		38,577
Societe BIC SA	609		37,816
Societe Des Autoroutes Paris-Rhin-Rhone	436		31,764
Societe Generale	7,177		1,156,828
Societe Television Francaise 1 (a)	2,191		69,987
Sodexho Alliance (a)	1,829		97,357
STMicroelectronics NV (a)	14,132		232,307
Suez SA Strip VVPR *	1,452		19
Suez SA (a)	19,246		821,830

The accompanying notes are an integral part of the financial statements. 239

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
France (continued)
Technip SA (a)	2,146	$	123,647
Thales SA (a)	1,884		81,751
Thomson SA * (a)	5,367		85,753
Total SA (a)	45,794		3,087,270
Unibail	916		178,581
Valeo SA (a)	1,584		57,872
Vallourec SA (a)	780		174,618
Veolia Environnement SA	5,958		333,452
Vinci SA (a)	4,406		476,274
Vivendi Universal SA	23,849		819,162
Zodiac SA	739		44,839

			23,094,137
Germany - 5.31%
Adidas-Salomon AG (a)	4,168		198,347
Allianz AG	8,498		1,439,003
Altana AG	1,539		90,760
BASF AG	10,729		882,934
Bayer AG	15,166		750,241
Beiersdorf AG (a)	990		54,711
Bilfinger Berger AG	835		45,718
Celesio AG	1,790		90,678
Commerzbank AG	13,261		463,121
Continental AG	2,792		298,234
DaimlerChrysler AG	19,058		1,004,454
Deutsche Bank AG	10,764		1,227,582
Deutsche Boerse AG (a)	2,135		323,565
Deutsche Lufthansa AG	5,009		99,064
Deutsche Post AG, GDR	1,460		36,799
Deutsche Post AG	13,149		332,885
Deutsche Postbank AG	1,171		91,258
Deutsche Telekom AG	59,323		864,375
Douglas Holding AG	661		29,460
E.ON AG	13,039		1,654,003
Fresenius Medical Care AG	1,277		168,228
Heidelberger Druckmaschinen AG	1,353		54,210
Hochtief AG	949		53,938
Hypo Real Estate Holding AG	2,772		171,630
Infineon Technologies AG *	15,740		184,642
IVG Immobilien AG	1,868		60,410
KarstadtQuelle AG * (a)	1,238		27,398
Linde AG	2,214		195,114
MAN AG	2,608		199,210
Merck & Company AG	1,067		105,771
Metro AG	3,134		183,941
MLP AG (a)	1,068		18,308
Muenchener Rueckversicherungs-
Gesellschaft AG	4,144		623,317
Premiere AG * (a)	1,468		18,441
ProSieben Sat.1 Media AG	1,600		42,901
Puma AG	240		83,120
Qiagen AG * (a)	2,757		39,431
Rheinmetall AG	788		52,822

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Germany (continued)
RWE AG	9,426	$	862,644
Salzgitter AG	883		78,991
SAP AG	4,688		894,111
Siemens AG	17,719		1,500,104
Solarworld AG (a)	804		47,507
Suedzucker AG	1,309		32,570
Thyssen Krupp AG	7,693		261,581
Tui AG (a)	4,369		85,177
Volkswagen AG (a)	3,489		278,287
Wincor Nixdorf AG	312		43,401

			16,344,397
Greece - 0.50%
Alpha Bank SA	8,194		217,610
Athens Stock Exchange SA (ASE) *	930		14,990
Bank of Piraeus SA	4,556		119,013
Coca Cola Hellenic Bottling Company SA	2,200		72,329
Cosmote Mobile Communications SA	2,130		49,537
EFG Eurobank Ergas SA	4,874		147,148
Folli-Follie SA	340		9,090
Germanos SA	1,160		27,779
Greek Organization of Football Prognostics	4,730		167,972
Hellenic Petroleum SA	2,190		28,520
Hellenic Technodomiki Tev SA	2,430		25,863
Hellenic Telecommunications Organization SA *	6,750		155,429
Intracom SA *	1,750		10,835
Motor Oil Hellas Corinth Refineries SA	910		24,074
National Bank Of Greece SA	8,097		335,602
Public Power Corp.	2,140		51,084
Techniki Olympiaki SA	1,630		6,506
Titan Cement Company SA	1,180		58,569
Viohalco SA	2,250		23,890

			1,545,840
Hong Kong - 1.61%
Anhui Conch Cement Company, Ltd., Series H	9,070		17,051
Bank of East Asia, Ltd.	30,600		136,141
Beijing Enterprises Holdings, Ltd.	4,714		7,601
BOC Hong Kong Holdings, Ltd.	79,000		173,299
Cathay Pacific Airways, Ltd.	21,000		39,208
Cheung Kong Holdings, Ltd.	32,000		353,661
China Eastern Airlines Corp., Ltd. *	24,639		3,327
China Everbright, Ltd. *	11,784		7,470
China Merchants Holdings
International Company, Ltd.	21,157		61,483
China Mobile, Ltd.	103,970		699,198
China Pharmaceutical Group, Ltd. *	498		64
China Resource Power Holdings, Ltd.	25,211		22,303
China Resources Enterprises, Ltd.	22,855		52,193
China Southern Airlines Company, Ltd. *	18,855		4,170
Citic Pacific, Ltd.	23,033		73,598
CLP Holdings, Ltd.	38,500		243,566
CNOOC, Ltd.	318,720		278,272

The accompanying notes are an integral part of the financial statements. 240

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Hong Kong (continued)
COFCO International, Ltd.	9,784	$	6,580
Denway Motors, Ltd.	105,559		33,662
FU JI Food & Catering Services Holdings, Ltd.	4,000		6,285
Global Bio-Chem Technology Group Company	22,855		7,612
Gome Electrical Appliances Holdings, Ltd.	15,427		11,882
Guangzhou Investment Company, Ltd.	75,493		14,076
Hang Lung Properties, Ltd.	40,000		85,586
Hang Seng Bank, Ltd.	16,300		206,450
Henderson Land Development Company, Ltd.	16,000		90,421
Hong Kong & China Gas Company, Ltd.	76,000		176,882
Hong Kong Electric Holdings, Ltd.	29,500		141,109
Hong Kong Exchange & Clearing, Ltd.	22,000		149,930
Hopewell Holdings, Ltd.	13,000		37,110
Hutchison Whampoa, Ltd.	45,000		408,804
Hysan Development Company, Ltd.	13,195		35,800
Li Ning Company, Ltd.	12,249		13,404
Link, REIT *	45,554		94,658
Melco International Development	16,000		38,555
MTR Corp.	29,799		76,251
New World Development Company, Ltd.	54,999		98,727
Nine Dragons Paper Holdings, Ltd. *	21,600		19,803
PCCW, Ltd.	75,000		46,869
Ping An Insurance Group Company of China,
Ltd.	21,855		71,520
Semiconductor Manufacturing
International Corp. *	256,912		32,374
Shanghai Industrial Holdings, Ltd.	10,070		19,656
Shangri-La Asia, Ltd.	26,000		51,485
Shenzhen Investment, Ltd.	17,568		6,235
Shun Tak Holdings, Ltd.	20,000		24,277
Sino Land Company, Ltd.	28,415		47,937
Sun Hung Kai Properties, Ltd.	29,000		316,217
Swire Pacific, Ltd., Class A	20,000		219,623
TCL Multimedia Technology Holdings, Ltd. *	21,925		1,663
Techtronic Industries Company, Ltd.	21,500		31,682
Television Broadcasting Company, Ltd.	6,000		34,062
Travelsky Technology, Ltd.	4,714		5,510
Weiqiao Textile Company, Ltd.	8,249		9,154
Wharf Holdings, Ltd.	26,000		87,927
Wing Hang Bank, Ltd.	3,500		33,529

			4,965,912
Hungary - 0.13%
BorsodChem Rt.	928		12,218
Gedeon Richter Rt.	284		60,484
Magyar Telekom Rt. *	9,529		38,827
MOL Magyar Olaj - es Gazipari Rt.	1,439		145,589
OTP Bank Rt.	5,117		147,747

			404,865
India - 0.84%
Bajaj Auto, Ltd., ADR	987		57,542
Dr Reddy's Laboratories, Ltd., ADR (a)	2,251		69,353

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
India (continued)
Grasim Industries, Ltd., ADR	1,533	$	73,967
Hindalco Industries, Ltd., ADR	2,729		9,961
ICICI Bank, Ltd., SADR	11,779		314,382
Infosys Technologies, Ltd., ADR (a)	15,600		699,660
Larsen & Toubro, Ltd., ADR	558		28,823
Mahindra & Mahindra, Ltd., ADR	800		11,320
Ranbaxy Laboratories, Ltd., ADR	6,577		57,549
Reliance Industries, Ltd., GDR	15,116		723,301
Satyam Computer Services, Ltd., ADR (a)	5,572		212,683
State Bank of India, Ltd., ADR (a)	1,019		49,931
Tata Motors, Ltd., ADR (a)	7,719		142,416
Videsh Sanchar Nigam, Ltd., ADR (a)	1,097		19,603
Wipro, Ltd., ADR (a)	8,936		113,308

			2,583,799
Indonesia - 0.21%
Aneka Tambang Tbk PT	14,000		8,292
Astra Agro Lestari Tbk PT	8,500		8,577
Astra International Tbk PT	42,000		51,135
Bank Central Asia Tbk PT	126,500		63,132
Bank Danamon Indonesia Tbk PT	35,500		19,080
Bank Internasional Indonesia Tbk PT	402,500		8,168
Bank Mandiri Tbk PT	125,500		28,908
Bank Pan Indonesia Tbk PT *	128,750		6,496
Bank Rakyat Indonesia Tbk PT	112,000		53,439
Berlian Laju Tanker Tbk PT	48,500		10,586
Bumi Resources Tbk PT	343,500		28,258
Energi Mega Persada Tbk PT *	91,500		5,520
Gudang Garam Tbk PT	12,000		13,294
Indocement Tunggal Prakarsa Tbk PT	19,500		9,785
Indofood Sukses Makmur Tbk PT	90,000		11,747
International Nickel Indonesia Tbk PT	4,000		9,652
Kalbe Farma Tbk PT *	96,000		11,793
Perusahaan Gas Negara Tbk PT	37,500		52,032
PT Indonesian Satellite Corp.	50,500		24,372
PT Telekomunikiasi Indonesia, ADR	4,500		157,455
Ramayana Lestari Sentosa Tbk PT	53,000		4,534
Semen Gresik Persero Tbk PT	3,000		8,342
Telekomunikasi Indonesia Tbk PT	23,500		20,363
Unilever Indonesia Tbk PT	32,000		15,707
United Tractors Tbk PT	27,000		17,029

			647,696
Ireland - 0.71%
Allied Irish Banks PLC - Dublin	18,778		490,044
Bank of Ireland	20,898		395,660
Blackrock International Land PLC *	5,978		2,982
C&C Group PLC	6,770		75,524
CRH PLC	11,485		397,718
DCC PLC	1,627		40,794
Depfa Bank PLC	7,425		137,917
Elan Corp. - Dublin *	9,186		152,765
Fyffes PLC - Dublin	5,978		12,542

The accompanying notes are an integral part of the financial statements. 241

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Ireland (continued)
Grafton Group PLC *	4,878	$	66,645
Greencore Group PLC - Dublin	2,954		15,456
Iaws Group PLC, ADR	2,146		43,348
Independent News & Media PLC	11,543		36,916
Irish Life & Permanent PLC - Dublin	5,853		150,498
Kerry Group PLC	2,634		58,630
Kingspan Group PLC - Dublin	2,757		49,306
Paddy Power PLC	795		14,492
Ryanair Holdings PLC, SADR * (a)	608		33,361

			2,174,598
Israel - 0.35%
Africa-Israel Investments, Ltd.	239		12,853
Aladdin Knowledge Systems, ADR * (a)	1,030		16,377
Alvarion, Ltd., ADR * (a)	1,224		8,617
Audio Codes, Ltd., ADR * (a)	664		6,600
Bank Hapoalim, Ltd.	19,985		87,858
Bank Leumi Le-Israel	17,834		63,546
Bezek Israeli Telecommunications Corp., Ltd.	21,059		25,407
Check Point Software Technologies, Ltd., ADR *	3,884		72,204
Clal Industries & Investments, Ltd.	277		1,401
Clal Insurance Enterprise Holdings, Ltd.	69		1,252
Discount Investment Corp.	110		2,418
ECI Telecom, Ltd., ADR *	1,069		7,643
Ectel, Ltd., ADR *	70		295
Elbit Systems, Ltd.	417		11,976
Given Imaging Corp., ADR * (a)	288		5,550
Harel Insurance Investments, Ltd.	33		1,344
ICL Israel Chemicals, Ltd.	10,207		48,726
IDB Development Corp., Ltd.	409		10,698
Israel Corporation, Ltd.	46		18,338
Israel Discount Bank, Ltd. *	8,946		14,593
Koor Industries, Ltd. *	61		3,073
Lipman Electronic Engineering, Ltd., ADR *	391		9,810
Makhteshim-Agam Industries, Ltd.	6,312		32,256
Migdal Insurance Holdings, Ltd.	919		1,012
M-Systems Flash Disk Pioneers, Ltd., ADR * (a)	697		30,933
Nice Systems, Ltd. *	976		24,480
Orbotech, Ltd. *	634		15,222
Partner Communications, Ltd.	1,398		13,021
RADWARE, Ltd. ADR *	1,054		13,944
Retalix, Ltd. *	65		1,184
Strauss-Elite, Ltd.	156		1,502
Super-Sol, Ltd. *	430		1,291
Syneron Medical, Ltd., ADR * (a)	327		7,750
Tadiran Communications Industries, Ltd.	35		1,097
Teva Pharmaceutical Industries, Ltd.	14,486		503,232
United Mizrahi Bank, Ltd.	2,438		13,586

			1,091,089
Italy - 3.03%
Alleanza Assicuraz SpA (a)	9,015		109,039
Assicurazioni Generali SpA	19,985		751,890

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Italy (continued)
Autogrill SpA (a)	2,441	$	36,941
Autostrade SpA (a)	5,934		167,763
Banca Fideuram SpA (a)	6,100		39,095
Banca Intesa SpA - Non convertible	18,949		120,536
Banca Intesa SpA (a)	81,335		544,170
Banca Monte dei Paschi Siena SpA (a)	23,866		144,944
Banca Popolare di Milano SpA (a)	8,829		122,884
Banche Popolari Unite SpA	7,410		208,828
Banco Popolare Di Verona e Novara SpA	7,741		229,742
Benetton Group SpA	1,203		17,975
Bulgari SpA (a)	3,076		38,504
Capitalia SpA	35,221		306,834
Enel SpA	90,023		802,679
Eni SpA	54,441		1,664,483
Fiat SpA * (a)	11,272		161,212
Finmeccanica SpA	6,422		141,961
Fondiaria-Sai SpA (a)	1,471		62,174
Gruppo Editoriale L'Espresso SpA (a)	3,249		17,259
Italcementi SpA (a)	1,507		37,130
Lottomatica SpA (a)	1,178		45,510
Luxottica Group SpA (a)	3,020		87,350
Mediaset SpA	16,547		190,933
Mediobanca SpA (a)	10,073		219,318
Mediolanum SpA (a)	5,322		38,262
Mondadori (Arnoldo) Editore SpA (a)	2,181		21,079
Pirelli & Company SpA	58,148		50,619
San Paolo-IMI SpA (a)	23,157		484,642
Seat Pagine Gialle SpA (a)	83,914		39,128
Snam Rete Gas SpA (a)	21,368		99,909
T.E.R.N.A SpA	23,850		67,809
Telecom Italia SpA	223,414		617,333
Telecom Italia SpA-RNC	125,409		308,025
Tiscali SpA * (a)	4,438		12,973
UniCredito Italiano SpA	163,338		1,299,670

			9,308,603
Japan - 18.83%
Access Company, Ltd. * (a)	5		33,531
Acom Company, Ltd. (a)	1,400		62,630
Aderans Company, Ltd. (a)	900		23,314
Advantest Corp. (a)	1,700		161,808
AEON Company, Ltd. (a)	12,000		302,160
AEON Credit Service Company, Ltd.	1,600		38,311
Aiful Corp. (a)	1,700		68,084
Aisin Seiki Company	4,000		121,341
Ajinomoto Company, Inc.	13,000		141,017
Alfresa Holdings Corp. (a)	500		33,659
All Nippon Airways Company, Ltd.	12,000		46,935
Alps Electric Company (a)	3,400		38,156
Amada Company, Ltd.	7,000		73,129
Amano Corp. (a)	1,600		22,278
Aoyama Trading Company, Ltd.	1,100		35,806

The accompanying notes are an integral part of the financial statements. 242

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Arrk Corp. *	1,400	$	16,880
Asahi Breweries, Ltd.	7,600		111,518
Asahi Glass Company, Ltd.	19,000		249,329
Asahi Kasei Corp. (a)	26,000		171,923
ASATSU-DK, Inc.	600		19,377
Asics Corp.	4,000		50,002
Astellas Pharmaceuticals, Inc.	11,000		446,168
Autobacs Seven Company, Ltd. (a)	600		24,797
Bank of Fukuoka, Ltd. (a)	11,000		84,641
Bank of Kyoto, Ltd.	5,000		52,022
Benesse Corp.	1,300		48,409
Bridgestone Corp.	12,600		268,416
Canon Sales Company, Inc.	1,800		42,717
Canon, Inc.	22,050		1,097,286
Casio Computer Company, Ltd. (a)	5,100		97,998
Central Glass Company, Ltd. (a)	5,000		27,864
Central Japan Railway Company, Ltd. (a)	33		357,122
Chiba Bank, Ltd.	16,000		149,018
Chiyoda Corp. (a)	3,000		65,826
Chubu Electric Power Company, Inc. (a)	12,900		349,555
Chugai Pharmaceutical Company, Ltd.	6,100		135,146
Circle K Sunkus Company, Ltd. (a)	700		14,166
Citizen Watch Company, Ltd. (a)	7,100		58,685
Coca-Cola West Japan Company, Ltd.	1,100		21,418
COMSYS Holdings Corp.	3,000		35,124
Credit Saison Company, Ltd.	3,300		148,754
CSK Corp.	1,300		55,831
Dai Nippon Printing Company, Ltd. (a)	13,000		193,635
Daicel Chemical Industries, Ltd.	5,000		37,919
Daido Steel Company, Ltd.	7,000		53,803
Daifuku Co Ltd	2,000		25,171
Daiichi Sankyo Company, Ltd. (a)	15,500		427,932
Daikin Industries, Ltd. (a)	5,100		156,014
Daimaru, Inc. (a)	4,000		49,389
Dainippon Ink & Chemicals, Inc. (a)	12,000		44,685
Dainippon Screen Manufacturing Company,
Ltd. (a)	5,000		42,052
Daito Trust Construction Company, Ltd.	1,700		88,364
Daiwa House Industry Company, Ltd.	10,000		162,924
Daiwa Securities Group, Inc. (a)	26,000		309,948
Denki Kagaku Kogyo Kabushiki Kaisha (a)	8,000		30,676
Denso Corp.	10,900		379,882
Dentsu, Inc. (a)	40		116,229
Dowa Mining Company, Ltd. (a)	5,000		45,588
E-Access, Ltd. (a)	37		22,101
East Japan Railway Company	71		524,537
Ebara Corp. (a)	6,000		24,081
EDION Corp. * (a)	1,800		32,057
Eisai Company, Ltd.	5,400		257,220
Electric Power Development Company, Ltd. (a)	3,500		130,629
Elpida Memory, Inc. *	1,400		61,915
Familymart Company, Ltd. (a)	1,300		36,777

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Fanuc, Ltd.	3,800	$	301,461
Fast Retailing Company, Ltd. (a)	1,100		102,637
Fuji Electric Holdings (a)	11,000		55,865
Fuji Photo Film Company, Ltd.	10,200		373,738
Fuji Software ABC, Inc. (a)	900		26,535
Fuji Television Network, Inc.	11		24,652
Fujikura, Ltd. (a)	8,000		94,551
Fujitsu, Ltd. (a)	38,000		304,699
Furukawa Electric Company, Ltd.	13,000		90,060
Glory, Ltd. (a)	1,100		20,434
Goodwill Group, Inc.	17		12,052
Gunma Bank	7,000		53,803
Gunze, Ltd.	4,000		23,518
Hakuhodo DY Holdings, Inc.	430		28,800
Hankyu Department Stores	2,000		15,918
Hanshin Electric Railway Company, Ltd. * (a)	3,000		23,288
Haseko Corp. * (a)	17,000		60,841
Hikari Tsushin, Inc. (a)	500		27,609
Hino Motors, Ltd.	6,000		32,312
Hirose Electric Company, Ltd. (a)	600		77,815
Hitachi Cable, Ltd. (a)	5,000		23,987
Hitachi Capital Corp.	900		17,179
Hitachi Chemical, Ltd.	2,100		50,820
Hitachi Construction Machinery Company, Ltd.	1,800		39,726
(a)
Hitachi High-Technologies Corp *	1,400		36,982
Hitachi, Ltd. (a)	69,000		438,030
Hokkaido Electric Power Company, Inc.	4,000		98,845
Hokugin Financial Group, Inc. (a)	26,000		102,356
Honda Motor Company, Ltd.	32,200		1,094,781
House Food Corp. (a)	1,500		24,464
Hoya Corp. (a)	8,800		320,191
Ibiden Company, Ltd.	2,700		138,273
Index Corp. (a)	26		20,272
Inpex Holdings Inc. *	17		147,818
Isetan Company, Ltd. (a)	4,200		70,862
Ishikawajima-Harima Heavy Industries
Company, Ltd.	22,000		64,113
ITO EN, Ltd.	1,200		39,981
Itochu Corp.	31,000		260,193
Itochu Techno-Science Corp. (a)	500		24,157
JAFCO Company, Ltd. (a)	600		30,983
Japan Airlines System Corp.	13,000		24,703
Japan Prime Realty Investment Corp.	8		23,723
Japan Real Estate Investment Corp. (a)	6		51,638
Japan Retail Fund (a)	5		36,087
Japan Tobacco, Inc.	92		350,424
JFE Holdings, Inc. (a)	11,800		480,627
JGC Corp.	4,000		71,919
Joyo Bank, Ltd.	13,000		78,650
JS Group Corporation	5,400		113,425
JSR Corp. (a)	3,500		83,358

The accompanying notes are an integral part of the financial statements. 243

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Kajima Corp. (a)	18,000	$	83,439
Kaken Pharmaceutical Company, Ltd.	2,000		14,639
Kamigumi Company, Ltd.	5,000		40,049
Kaneka Corp.	6,000		54,604
Kansai Electric Power Company, Ltd. (a)	15,700		376,597
Kansai Paint Company, Ltd.	4,000		31,460
Kao Corp.	10,000		266,712
Katokichi Company, Ltd. (a)	3,500		30,092
Kawasaki Heavy Industries, Ltd. (a)	28,000		88,518
Kawasaki Kisen Kaisha, Ltd. (a)	11,000		71,518
KDDI Corp.	51		336,799
Keihin Electric Express Railway
Company, Ltd. (a)	8,000		55,081
Keio Electric Railway Company, Ltd. (a)	11,000		71,612
Keisei Electric Railway Company, Ltd. (a)	4,000		24,268
Keyence Corp. (a)	800		184,670
Kikkoman Corp. (a)	3,000		36,556
Kinden Corp. (a)	2,000		16,173
Kintetsu Corp. (a)	35,000		113,033
Kirin Brewery Company, Ltd.	17,000		236,266
KK DaVinci Advisors * (a)	26		23,484
Kobe Steel Company, Ltd.	59,000		188,531
Kokuyo Company, Ltd. (a)	1,700		26,683
Komatsu, Ltd.	19,000		347,280
Komori Corp.	1,000		20,493
Konami Corp. (a)	1,700		43,313
Konica Minolta Holdings, Inc.	10,500		137,340
Kose Corp. (a)	600		18,968
Koyo Seiko Company, Ltd.	3,900		77,764
Kubota Corp. (a)	24,000		197,554
Kuraray Company, Ltd. (a)	7,500		85,893
Kurita Water Industries, Ltd. (a)	2,200		39,087
Kyocera Corp.	3,300		285,135
KYOWA HAKKO KOGYO COMPANY, LTD.	6,000		43,969
Kyushu Electric Power (a)	7,800		186,102
Lawson, Inc. (a)	1,200		41,924
LeoPalace21 Corp. (a)	2,800		99,254
Mabuchi Motor Company, Ltd. (a)	600		38,192
Makita Corp.	2,200		64,676
Marubeni Corp.	30,000		160,283
Marui Company, Ltd. (a)	6,100		90,859
Matsui Securities Company, Ltd. (a)	2,000		17,775
Matsumotokiyoshi Company, Ltd. (a)	800		19,428
Matsushita Electric Industrial Company, Ltd.	41,000		876,912
Matsushita Electric Works, Ltd.	7,000		74,679
Mediceo Holdings Company, Ltd.	3,800		70,751
Meiji Dairies Corp.	5,000		31,400
Meiji Seika Kaisha, Ltd. (a)	5,000		25,180
Meitec Corp. (a)	800		25,836
Millea Holdings, Inc. (a)	30		552,171
Minebea Company, Ltd.	7,000		39,547
Mitsubishi Chemical Holdings Corp, ADR	24,500		160,752

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Mitsubishi Corp.	28,000	$	570,236
Mitsubishi Electric Corp.	41,000		338,188
Mitsubishi Estate Company, Ltd.	23,000		495,846
Mitsubishi Gas & Chemicals Company, Inc.	8,000		87,325
Mitsubishi Heavy Industries, Ltd. (a)	66,000		276,699
Mitsubishi Logistc Corp. (a)	3,000		48,315
Mitsubishi Materials Corp. (a)	20,000		87,086
Mitsubishi Rayon Company, Ltd.	12,000		82,826
Mitsubishi Securities Company, Ltd. (a)	6,000		80,525
Mitsubishi UFJ Financial Group, Inc.	179		2,440,458
Mitsui & Company, Ltd.	32,000		463,278
Mitsui Chemicals, Inc.	12,000		84,359
Mitsui Engineering & Shipbuilding
Company, Ltd. * (a)	13,000		39,768
Mitsui Fudosan Company, Ltd.	17,000		380,981
Mitsui Mining & Smelting Company, Ltd.	12,000		67,488
Mitsui O.S.K. Lines, Ltd. (a)	22,000		167,782
Mitsui Sumitomo Insurance Company, Ltd.	25,000		305,057
Mitsui Trust Holdings, Inc.	11,000		128,789
Mitsukoshi, Ltd. (a)	8,000		37,698
Mitsumi Electric Company, Ltd. (a)	2,100		28,452
Mizuho Financial Group, Inc.	199		1,609,228
Murata Manufacturing Company, Ltd.	4,300		296,059
Namco Bandai Holdings, Inc. (a)	4,100		64,598
NEC Corp. (a)	42,000		244,438
NEC Electronics Corp. (a)	700		23,621
Net One Systems Company, Ltd. (a)	10		15,082
NGK Insulators, Ltd.	5,000		68,254
NGK Spark Plug Company, Ltd. (a)	4,000		81,462
NHK Spring Company, Ltd. (a)	3,000		33,386
NICHIREI Corp.	5,000		28,035
Nidec Corp. (a)	2,300		166,785
Nikko Cordial Corp.	17,500		222,189
Nikon Corp. (a)	6,000		108,645
Nintendo Company, Ltd.	2,100		430,898
Nippon Building Fund, Inc.	9		88,194
Nippon Electric Glass Company, Ltd. (a)	5,000		121,426
Nippon Express Company, Ltd.	16,000		86,848
Nippon Kayaku Company, Ltd.	3,000		25,972
Nippon Light Metal Company, Ltd. (a)	10,000		25,734
NIPPON MEAT PACKERS, Inc.	3,000		33,565
Nippon Mining Holdings, Inc. (a)	16,000		117,251
Nippon Oil Corp. (a)	27,000		205,223
Nippon Paper Group, Inc. (a)	19		70,589
Nippon Sheet Glass Company, Ltd. (a)	8,000		38,652
Nippon Shokubai Company, Ltd.	3,000		36,070
Nippon Steel Corp. (a)	129,000		538,622
Nippon Telegraph & Telephone Corp.	108		545,729
Nippon Yusen Kabushiki Kaisha (a)	21,000		130,092
Nippon Zeon Company (a)	3,000		34,536
Nishimatsu Construction Company, Ltd. (a)	5,000		18,661
Nishi-Nippon City Bank, Ltd.	12,000		58,285

The accompanying notes are an integral part of the financial statements. 244

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Nissan Chemical Industries, Ltd. (a)	3,000	$	38,933
Nissan Motor Company, Ltd. (a)	47,400		538,806
Nisshin Seifun Group, Inc.	3,500		37,399
Nisshin Steel Company (a)	17,000		50,991
Nisshinbo Industries, Inc. (a)	3,000		32,721
Nissin Food Products Company, Ltd.	1,800		60,739
Nitori Company, Ltd.	750		34,958
Nitto Denko Corp. (a)	3,500		251,417
NOK Corp. (a)	2,100		55,115
Nomura Real Estate Office Fund, Inc.	6		46,781
Nomura Research Institute, Ltd.	500		66,593
Nomura Securities Company, Ltd. (a)	36,500		706,020
NSK, Ltd. (a)	9,000		72,012
NTN Corp.	9,000		68,945
NTT Data Corp.	28		129,317
NTT DoCoMo, Inc. (a)	392		607,933
NTT Urban Development Corp. (a)	4		31,187
Obayashi Corp. (a)	14,000		96,988
OBIC Company, Ltd. (a)	150		30,152
Odakyu Electric Railway Company (a)	12,000		76,179
Oji Paper Company, Ltd. (a)	16,000		90,801
Oki Electric Industry Company, Ltd. (a)	10,000		22,070
Okuma Holdings, Inc. *	3,000		29,679
Okumura Corp. (a)	4,000		21,916
Olympus Optical Company, Ltd.	5,000		148,268
Omron Corp.	4,800		111,661
Onward Kashiyama Company, Ltd. (a)	3,000		41,950
Oracle Corp. - Japan (a)	600		26,381
Oriental Land Company, Ltd.	1,000		57,262
Orix Corp.	1,780		472,472
Osaka Gas Company, Ltd. (a)	44,000		161,970
OSG Corp. * (a)	1,900		30,599
Otsuka Corp. *	400		39,095
Park24 Company, Ltd. * (a)	1,100		33,744
Pioneer Electronic Corp. (a)	3,000		57,390
Promise Company, Ltd.	1,700		76,051
Q.P. Corp.	2,700		24,848
Rakuten, Inc. (a)	134		58,119
Resona Holdings, Inc. *	97		305,824
Ricoh Company, Ltd.	14,000		274,978
Rinnai Corp. (a)	1,000		27,779
Rohm Company, Ltd. (a)	2,300		213,429
Round One Corp	8		32,040
Ryohin Keikaku Company, Ltd. (a)	500		36,428
Sanken Electric Company (a)	3,000		39,623
SANKYO Company, Ltd.	1,000		54,109
Santen Pharmaceutical Company, Ltd.	1,300		32,069
Sanwa Shutter Corp. (a)	3,000		17,128
Sanyo Electric Company, Ltd. * (a)	30,000		62,886
Sapporo Hokuyo Holdings, Inc.	7		76,946
Sapporo Holdings (a)	6,000		30,012
SBI E*Trade Securities Compnay, Ltd. (a)	36		43,867

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
SBI Holdings, Inc.	161	$	61,393
Secom Company, Ltd.	4,500		223,552
Sega Sammy Holdings, Inc.	3,900		133,262
Seiko Epson Corp. (a)	3,000		82,570
Seino Transportation Company, Ltd.	3,000		34,383
Sekisui Chemical Company, Ltd.	9,000		78,991
Sekisui House, Ltd.	11,000		163,282
Seven & I Holdings Company, Ltd. (a)	16,800		594,095
SFCG Company, Ltd. (a)	100		19,803
Sharp Corp. (a)	21,000		375,783
Shimachu Company, Ltd. (a)	900		25,385
Shimamura Company, Ltd. (a)	400		39,470
Shimano, Inc.	1,500		42,180
Shimizu Corp. (a)	12,000		71,169
Shin-Etsu Chemical Company, Ltd.	8,200		467,453
Shinko Electric Industries Company, Ltd.	1,600		46,491
Shinko Securities Company, Ltd.	10,000		40,475
Shinsei Bank, Ltd.	28,000		172,502
Shionogi & Company, Ltd.	6,000		107,878
Shiseido Company, Ltd. (a)	8,000		158,834
Shizuoka Bank, Ltd. (a)	12,000		137,429
Showa Denko K.K. (a)	20,000		85,893
Showa Shell Sekiyu K.K.	4,400		49,153
SMC Corp.	1,100		147,067
SOFTBANK Corp. (a)	15,400		267,701
Sojitz Holdings Corp. * (a)	7,400		26,105
Sompo Japan Insurance, Inc.	18,000		237,894
Sony Corp.	20,700		896,050
Stanley Electric Corp. (a)	2,900		63,385
Sumco Corp (a)	1,100		73,112
Sumitomo Bakelite Company, Ltd.	3,000		24,132
Sumitomo Chemical Company, Ltd.	32,000		251,953
Sumitomo Corp.	22,000		297,508
Sumitomo Electric Industries, Ltd.	15,500		200,098
Sumitomo Heavy Industries, Ltd.	13,000		112,326
Sumitomo Metal Industries, Ltd.	87,000		358,067
Sumitomo Metal Mining Company, Ltd.	11,000		155,128
Sumitomo Mitsui Financial Group, Inc.	127		1,428,486
Sumitomo Osaka Cement Company, Ltd.	8,000		22,700
Sumitomo Realty &
Development Company, Ltd.	8,000		235,866
Sumitomo Rubber Industries, Inc. (a)	4,000		42,606
Sumitomo Titanium Corp. * (a)	200		40,816
Sumitomo Trust & Banking Company, Ltd. (a)	26,000		277,159
Suruga Bank, Ltd. (a)	4,000		50,718
Suzuken Company, Ltd.	1,600		59,716
T&D Holdings, Inc.	4,900		363,674
TAIHEIYO CEMENT CORP. (a)	17,000		64,028
Taisei Corp.	18,000		64,727
Taisho Pharmaceuticals Company, Ltd. (a)	3,000		58,668
Taiyo Nippon Sanso Corp. (a)	6,000		52,303
Taiyo Yuden Company, Ltd. (a)	2,000		27,182

The accompanying notes are an integral part of the financial statements. 245

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Takara Holdings (a)	3,000	$	18,227
Takashimaya Company, Ltd. (a)	6,000		75,668
Takeda Pharmaceutical Company, Ltd. (a)	18,400		1,218,252
Takefuji Corp. (a)	2,360		127,296
Tanabe Seiyaku Company, Ltd. (a)	5,000		63,738
TDK Corp.	2,700		209,135
Teijin, Ltd.	18,000		96,630
Terumo Corp. (a)	3,600		134,975
The 77th Bank, Ltd. (a)	6,000		43,969
The Bank of Yokohama, Ltd.	25,000		197,691
The Japan Steel Works, Ltd. (a)	8,000		56,785
The Tokyo Electric Power Company, Ltd. (a)	25,000		713,647
THK Company, Ltd.	2,600		63,142
TIS, Inc. (a)	1,100		23,199
Tobu Railway Company, Ltd.	17,000		87,495
Toda Corp.	4,000		19,224
Toho Company, Ltd.	2,800		56,427
Toho Titanium Company, Ltd. *	600		37,220
Tohoku Electric Power Company, Inc. (a)	8,900		201,730
Tokai Rika Company, Ltd.	1,400		27,378
Tokuyama Corp. (a)	5,000		69,320
Tokyo Broadcasting Company, Ltd.	600		13,472
Tokyo Electron, Ltd. (a)	3,400		223,663
Tokyo Gas Company, Ltd. (a)	46,000		244,983
Tokyo Seimitsu Company, Ltd. (a)	800		38,652
Tokyo Steel Manufacturing Company, Ltd. (a)	2,200		35,768
Tokyo Style Company, Ltd.	2,000		23,587
Tokyo Tatemono Company, Ltd.	6,000		64,931
Tokyu Corp.	22,000		146,410
Tokyu Land Corp. (a)	8,000		69,805
TonenGeneral Sekiyu K.K. (a)	6,000		54,195
Toppan Printing Company, Ltd. (a)	12,000		135,793
Toray Industries, Inc.	27,000		215,347
Toshiba Corp. (a)	61,000		434,545
Tosoh Corp. (a)	9,000		34,357
Toto, Ltd.	5,000		50,914
Toyo Seikan Kaisha, Ltd.	3,000		61,097
Toyo Suisan Kaisha, Ltd. (a)	2,000		30,489
Toyobo Company, Ltd.	12,000		31,903
Toyoda Gosei Company, Ltd.	1,400		29,824
Toyota Industries Corp.	4,200		175,007
Toyota Motor Corp. (a)	59,900		3,251,357
Toyota Tsusho Corp. (a)	4,000		105,321
Trend Micro, Inc. (a)	2,000		57,603
Ube Industries, Ltd. (a)	18,000		49,235
UNI Charm Corp.	900		50,386
Uniden Corp.	1,000		10,063
UNY Company, Ltd. (a)	3,000		42,665
Ushio, Inc.	2,000		44,992
USS Company, Ltd.	500		33,914
Wacoal Corp. (a)	2,000		26,177
West Japan Railway Company, Ltd. (a)	37		157,957

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Yahoo Japan Corp.	316	$	118,613
Yakult Honsha Company, Ltd.	1,900		51,809
Yamada Denki Company, Ltd.	1,800		193,260
Yamaha Corp. (a)	3,400		70,547
Yamaha Motor Company, Ltd.	3,700		98,683
Yamato Transport Company, Ltd. (a)	8,000		124,613
Yamazaki Baking Company, Ltd. (a)	3,000		31,034
YASKAWA Electric Corp. (a)	4,000		46,116
Yokogawa Electric Corp. (a)	4,000		56,921

			57,959,757
Korea - 0.01%
LG Philips LCD Company, Ltd., ADR * (a)	2,120		42,124
Luxembourg - 0.08%
Metro International SA, A Shares, GDR *	734		927
Metro International SA, B Shares, GDR * (a)	1,469		1,896
Tenaris SA, ADR	6,960		255,501

			258,324
Malaysia - 0.34%
AirAsia BHD *	17,100		6,271
AMMB Holdings BHD	28,000		18,636
Berjaya Sports Toto BHD *	13,700		16,748
British American Tobacco Malaysia Berhad	2,600		29,313
Bursa Malaysia BHD	6,300		10,098
Commerce Asset Holdings	44,000		76,501
DRB-Hicom Berhad	12,700		5,141
Gamuda BHD	11,600		12,794
Genting Berhad	7,100		47,449
Golden Hope Plantations BHD	8,800		11,475
Guinness Anchor BHD	2,900		4,451
Hong Leong Bank BHD	9,700		14,098
Hong Leong Credit BHD	4,400		5,427
IGB Corp. BHD	13,900		5,400
IJM Corp. BHD	6,900		11,153
IOI Corporation Berhad	12,700		58,307
IOI Properties BHD	1,800		4,108
KLCC Property Holdings BHD	8,900		5,319
Kuala Lumpur Kepong Berhad	5,100		15,795
Lafarge Malayan Cement BHD	24,600		5,380
Magnum Corp BHD	17,700		10,338
Malakoff BHD	10,900		28,723
Malayan Bank Berhad	37,800		115,012
Malaysian Airline System BHD	5,400		4,430
Malaysian Pacific Industries	1,800		4,939
Maxis Communications Berhard	17,600		42,075
Media Prima BHD	10,300		4,813
MISC BHD	22,400		51,421
MMC Corp BHD	6,400		5,564
Mulpha International Berhad *	16,000		5,303
OYL Industries BHD	14,100		21,451
Petronas Dagangan BHD	5,200		5,961
Petronas Gas Berhad *	8,000		19,343

The accompanying notes are an integral part of the financial statements. 246

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Malaysia (continued)
PLUS Expressways BHD	30,300	$	23,213
POS Malaysia & Services Holdings BHD	6,400		7,928
PPB Group BHD	9,700		12,069
Proton Holdings BHD *	5,100		6,844
Public Bank Berhad	21,000		38,509
Resorts World Berhad	9,900		32,005
RHB Capital BHD	13,100		9,751
Road Builder M Holdings BHD	8,300		5,186
Scomi Group BHD	12,900		3,049
Shell Refining Company Federation of Malaya
BHD *	3,100		9,180
Sime Darby Berhard	29,700		48,007
SP Setia BHD	9,900		10,166
Star Publications Malaysia BHD	9,200		8,648
Tanjong PLC	4,500		16,137
Telekom Malaysia BHD	17,000		42,027
Tenaga Nasional BHD	20,200		50,212
Transmile Group BHD	2,600		8,547
UMW Holdings Berhad	4,200		8,500
YTL Corp. BHD	12,700		18,113

			1,041,328
Mexico - 0.82%
Alfa SA de CV	6,600		32,049
America Movil S.A. de C.V., Series L	13,200		492,492
America Movil SA de CV	134,000		250,088
Carso Infraestructura y Construccion SA de
CV *	16,600		12,152
Cemex SA de CV *	40,104		115,596
Cemex SA, ADR *	9,908		286,242
Coca-Cola Femsa SA de CV	6,100		17,823
Consorcio ARA SA de CV	3,700		17,221
Controladora Comercial Mexicana SA de CV	7,800		14,650
Corp GEO SA de CV *	8,900		35,879
Desarrolladora Homex SA de CV *	3,400		20,946
Empresas ICA Sociedad
Controladora SA de CV *	7,600		25,764
Fomento Economico Mexicano SA de CV	15,400		145,047
Grupo Aeroportuario del Pacifico SA de CV	8,900		30,000
Grupo Aeroportuario del Sureste SA de CV	5,400		18,860
Grupo Bimbo SA de CV	6,600		21,588
Grupo Carso SA de CV	12,467		37,123
Grupo Financiero Banorte SA de CV	28,548		83,542
Grupo Mexico SA	21,349		68,089
Grupo Modelo SA	10,800		45,498
Grupo Televisa SA, SADR	7,240		137,850
Grupo Televisa SA	14,200		53,927
Industrias Penoles SA de CV	2,200		18,544
Kimberly-Clark de Mexico SA de CV	10,000		37,656
Telefonos de Mexico SA de CV, Class L, ADR	6,500		156,910
Telefonos de Mexico SA de CV	78,800		95,445
TV Azteca SA de CV *	26,400		17,415
Urbi Desarrollos Urbanos SA de CV *	6,100		16,186

International Equity Index Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Mexico (continued)
Wal-Mart de Mexico SA		66,900	$	228,016

				2,532,598
Netherland Antilles - 0.12%
Mittal Steel Company NV *		11,099		369,860
Netherlands - 4.35%
ABN AMRO Holdings NV		38,853		1,106,378
Aegon NV		29,986		534,733
Akzo Nobel NV		5,653		325,133
ASML Holding NV *		10,164		221,819
Buhrmann NV (a)		2,261		30,717
Corio NV		894		60,099
DSM NV		3,111		122,895
Euronext NV (a)		1,755		157,605
Euronext		146		13,018
Fugro NV		1,227		54,152
Getronics NV (a)		2,318		15,924
Hagemeyer N.V. * (a)		9,873		49,889
Heineken NV (a)		5,260		243,652
ING Groep NV		39,131		1,689,469
Koninklijke (Royal) KPN NV		40,338		496,931
Koninklijke (Royal) Philips Electronics NV		26,085		888,289
Koninklijke Ahold NV *		32,560		311,976
Mittal Steel Company NV *		3,253		108,363
Oce-Van Der Grinten NV		1,518		26,313
Randstad Holdings NV		1,023		54,899
Reed Elsevier NV		14,786		236,816
Rodamco Europe NV		1,109		119,666
Royal Dutch Shell PLC, A Shares	GBP (a)	79,860		2,764,830
Royal Dutch Shell PLC, B Shares	GBP	57,277		2,048,358
Royal Numico NV		3,686		170,977
SBM Offshore NV		2,956		80,961
TNT Post Group NV		8,856		332,507
Unilever NV		35,771		852,052
Vedior NV		3,467		64,044
Wereldhave NV		395		41,435
Wolters Kluwer NV		5,954		150,353

				13,374,253
New Zealand - 0.12%
Auckland International Airport, Ltd.		21,664		27,364
Contact Energy, Ltd.		6,386		28,628
Fisher & Paykel Appliances Holdings, Ltd.		5,572		13,128
Fisher & Paykel Healthcare Corp.		10,678		28,372
Fletcher Building, Ltd.		10,519		59,686
Kiwi Income Property Trust		16,706		15,306
Sky City Entertainment Group, Ltd.		9,523		32,408
Sky Network Television, Ltd.		4,317		15,793
Telecom Corp. of New Zealand, Ltd. (a)		43,131		117,989
Tower, Ltd. *		5,738		12,392
Vector, Ltd.		5,002		7,202
Warehouse Group, Ltd. (a)		2,751		9,002

				367,270

The accompanying notes are an integral part of the financial statements. 247

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Norway - 0.68%
Acergy SA * (a)	4,168	$	73,515
Aker Kvaerner ASA	596		57,039
Den Norske Bank ASA	14,400		186,219
DET Norske Oljeselskap * (a)	17,500		30,451
Norsk Hydro ASA	15,263		393,550
Norske Skogindustrier ASA	3,700		56,335
Ocean RIG ASA * (a)	3,683		22,955
Orkla ASA	4,100		201,057
PAN Fish ASA *	55,600		53,915
Petrojarl ASA * (a)	1,231		13,242
Petroleum Geo-Services ASA *	1,231		64,066
Prosafe ASA (a)	850		56,675
Schibsted ASA	1,000		29,344
Statoil ASA	14,100		380,291
Stolt-Nielsen SA	800		19,679
Storebrand ASA	5,000		52,004
Tandberg ASA (a)	2,600		26,631
Tandberg Television ASA *	1,800		24,843
Telenor ASA	16,400		207,542
TGS Nopec Geophysical Company ASA *	2,300		40,749
Tomra Systems ASA (a)	3,800		24,585
Yara International ASA	4,200		61,954

			2,076,641
Peru - 0.03%
Cia de Minas Buenaventura SA	404		11,164
Compania de Minas Buenaventura SA, ADR	1,366		38,180
Minsur SA	6,938		10,491
Southern Peru Copper Corp.	134		12,383
Volcan Compania Minera SA, CMN Series B *	6,579		11,572

			83,790
Philippines - 0.08%
ABS-CBN Broadcasting Corp. *	70		23
Ayala Corp.	2,676		23,167
Ayala Land, Inc.	113,000		30,015
Banco De Oro *	7,314		5,325
Bank of the Philippine Islands	27,840		29,031
Equitable PCI Bank Corp. *	7,567		11,762
Filinvest Land, Inc. *	101,057		2,704
First Philippine Holdings Corp.	5,924		4,895
Globe Telecommunications, Inc.	690		13,372
Jollibee Foods Corp.	9,000		5,666
Manila Electric Company *	8,311		4,415
Megaworld Corp.	152,823		5,051
Metropolitan Bank & Trust Company	12,800		9,696
Petron Corp.	48,152		3,790
Philippine Long Distance Telephone Company	1,120		42,090
San Miguel Corp.	9,600		13,411
SM Investments Corp.	3,447		15,056
SM Prime Holdings, Ltd.	91,000		14,145

			233,614

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Poland - 0.22%
Agora SA	628	$	6,435
Bank BPH SA	173		44,765
Bank Pekao SA	1,674		106,389
Bank Zachodni WBK SA	440		27,036
Boryszew SA *	550		4,583
BRE Bank SA *	174		13,315
Budimex SA *	231		5,468
Computerland SA	124		3,900
Debica SA	125		2,278
Globe Trade Centre SA *	1,200		10,506
Grupa Kety SA	176		9,017
KGHM Polska Miedz SA	2,213		76,781
Mondi Packaging Paper Swiecie SA	251		6,348
Orbis SA	510		7,756
Polish Oil & Gas Company	23,489		24,296
Polska Grupa Farmaceutyczna SA	198		4,045
Polski Koncern Naftowy Orlen SA	6,022		100,367
Powszechna Kasa Oszczednosci Bank Polski
SA	8,046		96,792
Prokom Software SA	210		8,988
Softbank SA	228		2,780
Telekomunikacja Polska SA	14,080		92,223
TVN SA *	515		17,868

			671,936
Portugal - 0.25%
Banco BPI, SA	6,404		47,925
Banco Comercial dos Acores, SA	41,088		126,148
Banco Espirito Santo SA	4,397		67,442
Brisa Auto Estrada, SA	6,945		71,430
Cimpor-Cimentos De Portugal, SA	4,257		28,863
Electricidade De Portugal, SA	38,429		154,363
Jeronimo Martins, SGPS, SA	715		12,769
Portugal Telecom, SGPS, SA	16,420		206,062
PT Multimedia.com, SGPS, SA	1,659		20,480
Sonae Industria SGPS SA New *	1,154		9,832
Sonae, SGPS, SA	18,991		31,583

			776,897
Russia - 1.26%
AFK Sistema, Reg. S, Spons. GDR	2,162		56,212
Comstar United Telesystems, ADR	3,812		24,282
Gazprom, ADR	39,199		1,846,273
JSC MMC Norilsk Nickel, ADR	1,254		171,171
Lukoil Oil Company, ADR	7,805		653,278
Mechel Steel Group, ADR (a)	588		12,407
Mobile Telesystems, ADR	3,298		120,707
NovaTek OAO, ADR	1,696		81,171
Novolipetsk Steel, ADR	2,495		48,029
Polyus Gold Company ZAO, ADR *	1,080		45,900
RAO Unified Energy System, ADR (a)	1,348		99,280
Rostelecom, ADR (a)	1,362		39,294
Sberbank of Russian Federation, ADR	732		158,844

The accompanying notes are an integral part of the financial statements. 248

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Russia (continued)
Sibirtelecom, ADR *	106	$	7,250
Surgutneftegaz, ADR for PFD Shares	1,139		111,052
Surgutneftegaz, ADR (a)	2,415		183,540
Tatneft, ADR (a)	1,082		112,409
UralsvyAzinform, ADR (a)	991		7,433
VolgaTelecom, ADR *	612		4,725
Vympel Communicatii, ADR *	1,525		82,838
Wimm-Bill-Dann Foods OJSC, ADR (a)	311		14,390

			3,880,485
Singapore - 0.65%
Allgreen Properties, Ltd.	9,000		8,352
Ascendas Real Estate Investment Trust * (a)	20,000		26,187
CapitaLand, Ltd. *	27,000		81,688
CapitaMall Trust * (a)	17,000		25,501
Chartered Semiconductor
Manufacturing, Ltd. * (a)	19,000		15,458
City Developments, Ltd.	11,000		68,868
ComfortDelGro Corp., Ltd.	38,000		36,230
Cosco Corp. Singapore, Ltd. (a)	15,000		14,587
Creative Technology, Ltd. (a)	1,050		6,874
DBS Group Holdings, Ltd.	24,000		274,582
Fraser and Neave, Ltd.	17,000		43,005
Haw Par Corp., Ltd.	2,000		7,500
Jardine Cycle and Carriage, Ltd.	3,061		21,788
Keppel Corp., Ltd. (a)	12,000		114,409
Keppel Land, Ltd.	7,000		19,755
K-REIT Asia *	1,000		941
Neptune Orient Lines, Ltd.	10,000		12,267
Olam International, Ltd.	12,000		12,204
Oversea-Chinese Banking Corp., Ltd.	53,000		217,282
Parkway Holdings, Ltd.	11,000		16,780
SembCorp Industries, Ltd.	17,000		37,602
SembCorp Marine, Ltd. (a)	10,000		21,992
Singapore Airlines, Ltd.	12,000		100,680
Singapore Exchange, Ltd.	17,000		43,005
Singapore Land, Ltd.	3,000		13,348
Singapore Petroleum Company, Ltd.	3,000		9,229
Singapore Post, Ltd.	26,000		16,856
Singapore Press Holdings, Ltd.	32,000		80,951
Singapore Technologies Engineering, Ltd.	29,000		53,823
Singapore Telecommunications, Ltd., ADR *	152,950		242,068
SMRT Corporation, Ltd.	12,000		8,161
ST Assembly Test Services, Ltd. * (a)	25,000		16,049
Suntec Real Estate Investment Trust *	16,000		13,221
United Overseas Bank, Ltd. (a)	25,000		247,887
United Overseas Land, Ltd.	10,000		19,958
Venture Corp., Ltd.	5,000		36,865
Want Want Holdings Company, Ltd.	10,000		15,000
Wing Tai Holdings, Ltd.	9,000		10,411

			2,011,364

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Africa - 0.31%
African Bank Investments, Ltd.	2,638	$	9,317
Alexander Forbes, Ltd. *	1,992		3,906
Allan Gray Property Trust	6,248		4,608
Anglo Platinum, Ltd.	374		41,968
AngloGold Ashanti, Ltd.	863		39,179
Aspen Pharmacare Holdings, Ltd.	1,234		5,712
Aveng, Ltd.	2,354		8,729
AVI, Ltd.	1,907		4,240
Barloworld, Ltd.	1,249		23,547
Bidvest Group, Ltd. *	1,479		22,409
Consol, Ltd.	2,028		4,337
Edgars Consolidated Stores, Ltd.	2,803		11,032
Ellerine Holdings, Ltd.	499		4,643
FirstRand, Ltd.	15,996		39,654
Foschini, Ltd.	984		6,150
Gold Fields, Ltd.	2,807		54,577
Grindrod, Ltd.	1,467		2,622
Harmony Gold Mining Company, Ltd. *	1,917		26,091
Impala Platinum Holdings, Ltd.	362		67,116
Imperial Holdings, Ltd. *	1,071		21,195
Investec, Ltd.	159		7,773
JD Group, Ltd.	973		9,000
Kumba Resources, Ltd.	377		7,616
Lewis Group, Ltd.	574		3,966
Liberty Group, Ltd.	531		5,235
Massmart Holdings, Ltd.	1,110		8,496
Metropolitan Holdings, Ltd.	2,671		4,477
Mittal Steel South Africa, Ltd.	1,164		12,334
MTN Group, Ltd.	7,574		60,167
Murray & Roberts Holdings, Ltd.	1,779		7,202
Nampak, Ltd.	2,496		5,948
Naspers, Ltd.	1,705		29,480
Nedbank Group, Ltd.	1,145		17,563
Network Healthcare Holdings, Ltd. *	7,009		11,389
Pick'n Pay Stores, Ltd.	1,360		5,742
Pretoria Portland Cement Company, Ltd.	61		3,295
Reunert, Ltd.	1,017		10,198
Sanlam, Ltd.	13,077		27,514
Sappi, Ltd.	1,177		14,998
Sasol, Ltd.	3,282		113,950
Shoprite Holdings, Ltd.	2,089		7,166
Spar Group, Ltd.	1,061		5,511
Standard Bank Group, Ltd.	6,915		74,744
Steinhoff International Holdings, Ltd. *	5,224		17,071
Super Group, Ltd. *	1,290		1,951
Telkom SA, Ltd. *	1,711		32,317
Tiger Brands, Ltd.	925		19,591
Tongaat-Hulett Group, Ltd.	315		4,101
Truworths International, Ltd.	2,706		8,614
Woolworths Holdings, Ltd.	4,605		8,461

			946,902

The accompanying notes are an integral part of the financial statements. 249

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Korea - 2.22%
Asiana Airlines *	1,534	$	9,686
Cheil Communications, Inc.	60		12,077
Cheil Industries, Inc.	990		38,000
CJ Corp.	400		42,024
Daeduck Electronics Company, Ltd.	990		8,516
Daegu Bank	2,730		45,720
Daelim Industrial Company	580		37,164
Daewoo Engineering & Construction
Company, Ltd.	3,310		60,598
Daewoo International Corp.	940		36,667
Daewoo Securities Company, Ltd.	2,500		43,559
Daewoo Shipbuilding & Marine Engineering
Company, Ltd.	2,050		63,333
Daishin Securities Company, Ltd.	710		14,402
Daum Communications Corp. *	259		13,444
Dongbu Insurance Company, Ltd.	580		13,062
Dongkuk Steel Mill Company, Ltd.	690		11,986
Doosan Infracore Company, Ltd.	960		16,577
GS Engineering & Construction Corp.	780		53,387
Hana Financial Group, Inc.	2,400		103,479
Hanjin Heavy Industries & Construction
Company, Ltd.	720		19,622
Hanjin Shipping Company, Ltd.	1,200		27,461
Hanmi Pharm Company, Ltd.	110		12,930
Hanwha Chem Corp.	1,010		10,243
Hite Brewery Company, Ltd.	150		17,007
Honam Petrochemical Corp.	250		12,977
Hyosung Corp. *	610		11,072
Hyundai Autonet Company, Ltd. *	1,500		17,007
Hyundai Department Store Company, Ltd.	240		18,674
Hyundai Development Company	1,380		56,558
Hyundai Engineering & Construction
Company, Ltd. *	840		44,388
Hyundai Heavy Industries	960		121,829
Hyundai Marine & Fire
Insurance Company, Ltd.	1,160		15,445
Hyundai Mipo Dockyard	190		19,566
Hyundai Mobis	1,180		108,138
Hyundai Motor Company	3,200		269,621
Hyundai Securities Company, Ltd.	2,490		32,506
Kangwon Land, Inc.	2,340		44,300
KCC Corp.	80		20,305
Kia Motors Corp.	4,080		64,934
Kookmin Bank, ADR	5,064		408,057
Kookmin Bank	2,070		167,521
Korea Electric Power Corp., ADR	7,816		151,787
Korea Electric Power Corp.	1,530		58,568
Korea Exchange Bank *	1,540		18,662
Korea Investment Holdings Company, Ltd.	590		23,874
Korea Zinc Company, Ltd.	200		17,267
Korean Air Lines Company, Ltd.	790		24,899
Korean Reinsurance Company	1,210		14,349

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Korea (continued)
KT & G Corp.	2,390	$	140,215
KT Corp., Sponsored ADR	4,271		94,389
KT Corp.	770		33,600
KT Freetel Company, Ltd.	2,110		61,126
LG Chem, Ltd.	1,000		40,724
LG Electronics, Inc.	1,980		132,638
LG Household & Health Care, Ltd.	190		14,605
LG International Corp.	860		19,278
LG Petrochemical Company, Ltd.	500		10,870
LG Philips LCD Company, Ltd. *	890		35,643
Lotte Chilsung Beverage Company, Ltd.	10		13,315
Lotte Confectionery Company, Ltd.	20		25,111
Lotte Shopping Company	180		61,320
LS Cable, Ltd.	340		11,388
Mirae Asset Securities Company, Ltd.	240		15,104
NCSoft Corp. *	240		13,306
NHN Corp. *	792		74,805
Nong Shim Company, Ltd.	50		12,040
Orion Corp.	60		13,231
Pacific Corp.	110		14,246
Poongsan Corp.	570		12,422
POSCO, SADR	4,537		281,793
POSCO	440		110,532
Pusan Bank	2,740		35,199
S1 Corp.	330		13,473
Samsung Corp.	2,830		80,071
Samsung Electro-Mechanics Company *	1,300		49,966
Samsung Electronics Company, Ltd.,
GDR-London	770		261,800
Samsung Electronics Company, Ltd.	2,080		1,406,356
Samsung Engineering Company, Ltd.	710		32,976
Samsung Fine Chemicals Company, Ltd.	430		10,735
Samsung Fire & Marine
Insurance Company, Ltd.	780		109,533
Samsung Heavy Industries Company, Ltd.	3,680		88,043
Samsung SDI Company, Ltd.	740		61,272
Samsung Securities Company, Ltd.	1,150		67,109
Samsung Techwin Company, Ltd.	1,030		36,107
Shinhan Financial Group Company, Ltd.	4,650		209,682
Shinsegae Company, Ltd.	300		148,853
SK Corp.	2,300		148,094
SK Telecom Company, Ltd., ADR	5,517		120,822
SK Telecom Company, Ltd.	250		48,630
S-Oil Corp.	960		65,608
The Hancook Tire Company, Ltd.	2,360		31,422
Tong Yang Investment Bank *	1,310		18,055
Woongjin Coway Company, Ltd.	670		15,333
Woori Investment & Securities Company, Ltd.	2,020		44,125
Yuhan Corp.	120		18,661

			6,816,874
Spain - 3.07%
Abertis Infraestructuras SA (a)	4,968		121,069

The accompanying notes are an integral part of the financial statements. 250

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Spain (continued)
Acciona SA (a)	581	$	88,669
Acerinox SA (a)	4,014		75,483
ACS Actividades SA	5,194		232,621
Aguas De Barcelona SA-Class A	1,156		32,386
Altadis SA, Series A	5,776		273,391
Antena 3 de Television SA (a)	1,504		34,555
Banco Bilbao Vizcaya Argentaria SA	70,844		1,616,789
Banco Popular Espanol SA	18,256		286,086
Banco Santander Central Hispano SA (a)	124,174		1,923,669
Cintra Concesiones de Infraestructuras de
Transporte SA (a)	4,383		58,144
Corporacion Mapfre SA	2,065		41,315
Ebro Puleva SA (a)	1,639		35,120
Endesa SA	19,863		690,129
Fadesa Inmobiliaria SA (a)	1,095		35,272
Fomento de Construcciones SA	934		72,764
Gamesa Corporation Tecno SA (a)	3,488		73,400
Gas Natural SDG SA	3,678		122,944
Grupo Ferrovial SA (a)	1,293		100,402
Iberdrola SA	17,005		630,421
Iberia Lineas Aereas de Espana SA (a)	9,151		22,828
Indra Sistemas SA	2,538		52,695
Industria de Diseno Textil SA (a)	4,698		211,609
Inmobiliaria Colonial SA	714		57,315
Metrovacesa SA (a)	978		92,457
NH Hoteles SA (a)	1,516		32,891
Promotora de Informaciones SA (a)	1,493		24,657
Repsol SA (a)	19,068		547,373
Sacyr Vallehermoso SA (a)	2,013		77,563
Sogecable SA * (a)	829		27,223
Telefonica SA	93,189		1,597,441
Union Fenosa SA (a)	2,913		127,109
Zeltia SA * (a)	3,133		23,406

			9,439,196
Sweden - 1.79%
Alfa Laval AB	1,900		62,810
Assa Abloy AB, Series B	6,400		112,189
Atlas Copco AB, Series A	6,900		177,622
Atlas Copco AB, Series B	4,200		101,451
Axfood AB	600		18,344
Billerud Aktibolag AB (a)	1,000		15,459
Boliden AB (a)	6,000		112,631
Capio AB *	1,920		32,464
Castellum AB	3,000		32,299
D. Carnegie & Company AB	1,400		24,928
Electrolux AB, Series B (a)	5,600		86,571
Elekta AB, Series B	1,687		29,805
Eniro AB	3,600		42,112
Ericsson LM, Series B	304,000		1,011,249
Fabege AB	1,500		29,814
Getinge AB, Series B	3,600		65,591
Hennes & Mauritz AB, Series B	9,750		378,835

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Sweden (continued)
Hoganas AG, B Shares (a)	600	$	15,404
Holmen AB, Series B	1,000		41,892
Husqvarna AB, B Shares *	5,200		56,164
Kungsleden AB	2,802		27,170
Lundin Petroleum AB, Series A * (a)	4,553		50,432
Modern Times Group AB, Series B * (a)	1,050		54,783
Nobia AB	1,000		31,056
Nordea Bank AB	42,500		533,824
OMX AB (a)	1,400		21,256
Oriflame Cosmetics AB	865		29,849
Sandvik AB	20,731		226,771
SAS AB * (a)	1,500		18,323
Scania AB, Series B	2,100		99,712
Securitas AB, B Shares	6,400		112,631
Skandinaviska Enskilda Banken AB, Series A	9,600		248,451
Skanska AB, Series B	7,500		118,014
SKF AB, Series B	8,200		117,144
Ssab Svenskt Stal AB, Series A	3,000		57,765
Ssab Svenskt Stal AB, Series B	1,800		32,795
Svenska Cellulosa AB, Series B	3,900		167,145
Svenska Handelsbanken AB, Series A	10,500		273,917
Swedish Match AB	6,500		109,905
Tele2 AB, Series B	6,354		62,927
Telelogic AB * (a)	4,000		7,564
Teliasonera AB	38,000		234,979
Trelleborg AB, Series B (a)	1,600		31,139
Volvo AB, Series A	2,000		116,082
Volvo AB, Series B	4,400		250,217
Wihlborgs Fastigheter AB	582		9,238
WM Data AB, Series B	6,000		21,036

			5,511,759
Switzerland - 5.52%
ABB, Ltd.	41,048		544,002
Adecco SA	2,803		163,472
Ciba Specialty Chemicals Holding AG (a)	1,529		85,454
Clariant AG * (a)	4,992		60,696
Compagnie Financiere
Richemont AG, Series A (a)	10,854		515,558
Credit Suisse Group AG (a)	24,751		1,377,285
Geberit AG	84		97,638
Givaudan AG (a)	135		108,606
Holcim, Ltd. (a)	4,221		341,115
Kudelski SA (a)	688		20,104
Kuehne & Nagel International AG	1,115		78,223
Kuoni Reisen Holding AG, Series B *	55		28,755
Logitech International SA *	3,486		75,162
Lonza Group AG	825		53,698
Micronas Semiconductor Holding AG * (a)	604		13,904
Nestle SA	8,437		2,894,513
Nobel Biocare Holding AG, Series BR	498		121,099
Novartis AG	48,678		2,771,849
Phonak Holding AG	1,039		61,900

The accompanying notes are an integral part of the financial statements. 251

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Switzerland (continued)
PSP Swiss Property AG *	1,046	$	54,220
Rieter Holdings AG	90		38,664
Roche Holdings AG NPV	14,688		2,701,392
Schindler Holding AG	1,109		57,711
Serono AG, Series B (a)	97		67,461
SIG Holding AG *	121		28,737
Societe Generale de Surveillance Holdings AG	91		82,982
Straumann Holding AG (a)	146		30,237
Sulzer AG	70		56,570
Swatch Group AG, BR shares (a)	685		133,369
Swatch Group AG (a)	1,007		39,669
Swiss Re	7,009		533,473
Swisscom AG (a)	396		132,487
Syngenta AG *	2,252		329,850
Synthes AG	988		107,633
UBS AG	43,237		2,440,996
Unaxis Holding AG * (a)	141		41,487
Zurich Financial Services AG	3,038		690,734

			16,980,705
Thailand - 0.20%
Advanced Info Service Company, Ltd.	18,000		43,353
Airports of Thailand PCL	8,700		12,966
Aromatics Thailand PCL	4,700		3,784
Bangkok Bank PCL, Foreign Shares	19,100		55,915
Bangkok Bank PCL	2,100		5,868
Bangkok Bank, Public Company, Ltd., NVDR	4,900		13,693
Bangkok Expressway PCL	7,100		4,025
Banpu PCL, Reg.	2,600		10,241
BEC World PCL	18,400		8,961
C.P. Seven Eleven PCL	31,600		5,298
Charoen Pokphand Foods PCL	61,300		8,125
Delta Electronics Thailand PCL	7,300		3,206
Electricity Generating, Public Company, Ltd.,
NVDR	1,900		3,868
Electricity Generating, Public Company, Ltd.	800		1,629
Hana Microelectronics PCL	11,500		8,034
Italian-Thai Development PCL	27,400		3,792
Kasikornbank PCL	2,200		3,659
Kasikornbank PCL	23,700		40,998
Kasikornbank, Public Company, Ltd., NVDR	7,000		11,643
Kiatnakin Finance PCL	4,500		3,413
Kim Eng Securities Thailand PCL	3,900		2,086
Krung Thai Bank PCL	57,000		17,294
Land & Houses PCL, Alien MKT REG	42,300		8,556
Land & Houses PCL	9,300		1,782
Land & Houses, Public Company, Ltd., NVDR	21,200		4,062
National Finance PCL	13,300		5,026
Precious Shipping PCL	4,200		4,471
PTT Chemical PCL	5,500		11,344
PTT Exploration & Production PCL	26,700		76,032
PTT PCL	17,500		110,845
Ratchaburi Electricity Generating Holding PCL	5,900		5,221

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Thailand (continued)
Sahaviriya Steel Industries PCL *	106,900	$	3,414
Siam Cement PCL, Foreign Shares	6,100		37,988
Siam Cement PCL	800		4,641
Siam Cement, Public Company, Ltd., NVDR	1,900		11,023
Siam City Cement PCL	1,300		8,096
Siam Commercial Bank PCL	16,500		25,469
Siam Makro PCL	2,000		3,726
Sino Thai Engineering & Construction PCL	11,800		1,407
Thai Airways International PCL	10,400		12,178
Thai Union Frozen Products PCL	1,900		1,163
Thai Union Frozen Products, Public
Company, Ltd., NVDR	4,300		2,632
Tisco Bank PCL	4,200		2,258
Tisco Finance PLC	1,200		664
True Corp. PCL *	33,900		8,165

			622,014
Turkey - 0.20%
Akbank AS	15,797		86,293
Akcansa Cimento AS	982		5,297
Aksigorta AS	2,511		9,173
Anadolu Efes Biracilik Ve Malt Sanayii AS	1,158		30,838
Arcelik AS	2,051		13,235
Aygaz AS *	1,469		3,431
Cimsa Cimento Sanayi VE Tica AS	747		4,387
Dogan Sirketler Grubu Holdings AS	5,280		22,533
Dogan Yayin Holding AS *	4,369		14,379
Dogus Otomotiv Servis ve Ticaret AS	790		3,291
Eregli Demir ve Celik Fabrikalari TAS	4,004		19,548
Ford Otomotiv Sanayi AS	1,440		10,324
HACI Omer Sabanci Holdings, AS	9,232		34,986
Hurriyet Gazetecilik AS	3,847		9,141
Is Gayrimenkul Yatirim Ortakligi AS	3,046		5,533
KOC Holdings AS *	5,189		19,310
Migros Turk TAS *	1,623		15,626
Petkim Petrokimya Holding AS *	1,680		6,023
Tofas Turk Otomobil Fabrik AS	2,564		7,003
Trakya Cam Sanayi AS	2,105		5,146
Tupras Turkiye Petrol Rafine AS	2,467		45,061
Turk Sise ve Cam Fabrikalari AS *	3,041		9,303
Turkcell Iletisim Hizmetleri AS - ADR	3,371		40,452
Turkiye Garanti Bankasi AS	19,387		56,658
Turkiye Is Bankasi AS	14,137		81,569
Turkiye Vakiflar Bankasi Tao	7,872		36,283
Ulker Gida Sanayi ve Ticaret AS	1,484		3,790
Vestel Elektronik Sanayi AS *	1,632		4,301
Yapi ve Kredi Bankasi AS *	13,081		25,546

			628,460
United Kingdom - 17.36%
3i Group PLC	9,994		180,891
Aegis Group PLC	19,151		46,539
Aggreko PLC	6,402		34,343

The accompanying notes are an integral part of the financial statements. 252

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
AMEC PLC	6,569	$	40,362
Amvescap PLC	14,973		154,375
Anglo American PLC	29,422		1,271,594
ARM Holdings PLC	26,923		60,817
Arriva PLC	3,852		43,598
AstraZeneca Group PLC	32,720		2,118,706
Astro All Asia Networks PLC, GDR	9,800		12,673
Aviva PLC	52,528		737,420
BAE Systems PLC	67,742		477,435
Barclays PLC	134,626		1,683,808
Barratt Developments PLC	5,310		100,353
BBA Group PLC	9,142		46,345
Bellway PLC	2,214		51,171
Berkeley Group Holdings PLC *	1,981		48,310
BG Group PLC	72,301		944,175
BHP Billiton PLC	50,646		964,377
BICC PLC	9,818		69,709
BOC Group PLC	10,751		330,285
Boots Group PLC	17,506		256,752
Bovis Homes Group PLC	2,613		41,629
BP PLC	414,151		4,703,280
Brambles Industries, Ltd.	15,637		136,829
Britannic Group PLC	13,836		156,601
British Airways PLC *	12,165		95,051
British American Tobacco Australasia, Ltd.	32,521		890,829
British Land Company PLC	11,032		286,454
British Sky Broadcasting Group PLC	24,787		264,282
Brixton PLC	5,015		50,227
BT Group PLC	175,127		821,179
Bunzl PLC	6,926		85,967
Burberry Group PLC	9,066		82,521
Cadbury Schweppes PLC	44,071		468,633
Capita Group PLC	14,192		147,672
Carnival PLC	3,450		147,859
Carphone Warehouse	8,921		47,728
Cattles PLC	7,748		48,416
Centrica PLC	74,743		419,431
Charter Plc *	3,680		53,692
Close Brothers Group PLC	2,373		41,258
Cobham PLC	22,160		72,399
Collins Stewart Tullett PLC	4,719		70,063
Compass Group PLC	44,063		213,948
Cookson Group PLC	4,568		47,488
Corus Group PLC	18,434		137,547
CSR PLC * (a)	2,781		62,001
Daily Mail and General Trust PLC	6,226		68,218
Davis Service Group PLC	4,197		38,661
De La Rue PLC	3,325		33,965
Diageo PLC	59,050		1,050,266
Dixons Group PLC	39,705		154,834
Electrocomponents PLC	8,643		39,294
EMAP PLC	5,016		68,319

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
EMI Group PLC	15,447	$	78,676
Enterprise Inns PLC	6,717		130,841
First Choice Holidays PLC	11,680		47,158
FirstGroup PLC	7,722		68,598
FKI PLC	9,466		17,422
Friends Provident Ethical Investment
Trust PLC	33,279		117,747
Gallaher Group PLC	13,488		232,971
George Wimpey PLC	7,900		75,289
GKN PLC	14,104		81,830
GlaxoSmithKline PLC	120,927		3,422,898
Great Portland Estates PLC	3,281		35,263
Group 4 Securicor PLC	22,508		74,500
GUS PLC	18,580		344,779
Hammerson PLC	5,810		140,582
Hanson PLC	14,827		186,715
Hays PLC	29,667		76,891
HBOS PLC	79,424		1,515,376
HMV Group PLC	6,714		19,413
HSBC Holdings PLC	238,273		4,319,521
ICAP PLC	10,561		92,965
IMI PLC	6,793		65,353
Imperial Chemical Industries PLC	24,504		173,516
Imperial Tobacco Group PLC	14,211		489,295
Inchcape Plc	8,832		83,415
Intercontinental Hotels Group PLC	8,198		143,315
International Power PLC	30,333		183,201
Intertek Group PLC	3,065		40,288
Invensys PLC *	14,917		57,603
Investec PLC	1,458		74,274
ITV PLC	83,385		167,740
J Sainsbury PLC	31,197		211,563
Johnson Matthey PLC	4,753		119,437
Kesa Electricals PLC	10,401		61,236
Kingfisher PLC	50,398		226,252
Ladbrokes PLC	11,390		82,821
Land Securities Group PLC	9,982		359,638
Legal & General Group PLC	137,575		344,138
Liberty International PLC	5,498		118,914
Lloyds TSB Group PLC	116,032		1,151,065
Logicacmg PLC	25,682		76,090
London Stock Exchange Group PLC	3,108		68,168
Man Group PLC	37,602		302,029
Marks & Spencer Group PLC	34,908		393,442
Meggitt PLC	8,498		50,800
MFI Furniture Group PLC	9,729		15,638
Michael Page International PLC	7,525		49,421
Misys PLC	9,647		45,373
National Express Group PLC	2,690		42,190
National Grid PLC ADR	56,016		679,830
Next Group PLC	5,240		166,163
Old Mutual PLC	106,406		331,448

The accompanying notes are an integral part of the financial statements. 253

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
Pearson PLC	17,178	$	244,096
Persimmon PLC (a)	5,618		133,051
Premier Farnell PLC	6,379		22,782
Provident Financial PLC	5,072		63,196
Prudential Corp. PLC	49,448		554,498
Punch Taverns PLC	5,573		98,009
Rank Group PLC	12,301		49,958
Reckitt Benckiser PLC	12,793		530,514
Reed Elsevier PLC	27,064		290,104
Rentokil Initial PLC	39,643		113,305
Reuters Group PLC	28,199		216,712
Rexam PLC	11,508		118,869
Rio Tinto PLC	21,796		1,101,631
Rolls-Royce Group PLC *	36,219		300,566
Royal & Sun Alliance PLC	63,688		167,794
Royal Bank of Scotland Group PLC	66,069		2,239,614
SAB Miller PLC	18,509		364,235
Schroders PLC	2,444		42,260
Scottish & Newcastle PLC	17,139		179,478
Scottish & Southern Energy PLC	17,987		411,958
Scottish Power PLC *	30,492		359,911
Serco Group PLC	9,062		60,678
Severn Trent PLC	7,147		178,779
Signet Group PLC	36,125		73,529
Slough Estates PLC	9,210		115,105
Smith & Nephew PLC	19,062		165,077
Smiths Group PLC	12,146		198,701
Sportingbet PLC	8,330		40,129
SSL International PLC	3,083		17,037
Stagecoach Group PLC	17,628		38,898
Standard Life PLC *	45,492		227,593
Tate & Lyle PLC	10,562		147,171
Taylor Woodrow PLC	11,561		75,432
Tesco PLC	162,736		1,167,833
The Sage Group PLC	26,621		121,156
Tomkins PLC	17,228		93,236
Travis Perkins PLC	2,254		72,290
Trinity Mirror PLC	5,754		49,912
Unilever PLC	25,897		618,738
United Business Media PLC	5,512		64,694
United Utilities PLC	18,612		243,053
Vodafone Group PLC *	1,096,764		2,373,189
Whitbread PLC *	4,560		106,173
William Hill PLC	7,627		92,201
Wolseley PLC	12,519		272,674
WPP Group PLC	25,177		306,515
Xstrata PLC	9,703		435,229
Yell Group PLC	16,291		164,245
Yorkshire Water PLC	8,139		127,730

			53,423,208

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
United States - 0.02%
Southern Copper Corp. (a)	700	$	64,624

TOTAL COMMON STOCKS (Cost $262,450,713)		$	291,334,729


PREFERRED STOCKS - 0.76%
Brazil - 0.48%
Aracruz Celulose SA	1,300		6,710
Banco Bradesco SA	9,700		314,958
Banco Itau Holding Financeira SA *	11,000		331,477
Braskem SA, A Shares	2,500		16,291
Centrais Eletricas Brasileiras SA	900,000		17,994
Cia de Bebidas das Americas, ADR	2,916		130,812
Cia de Bebidas das Americas	50,000		22,492
Cia de Gas de Sao Paulo	50,000		7,170
Cia de Tecidos do Norte de Minas - Coteminas	90,000		8,155
Cia Paranaense de Energia *	1,700,000		18,304
Cia Vale do Rio Doce	6,500		120,906
Duratex SA *	1,500		15,065
Eletropaulo Metropolitana de Sao Paulo SA *	160,000		7,099
Embratel Participacoes SA	5,800,000		18,261
Gol Linhas Aereas Inteligentes SA	1,100		38,029
Klabin SA, ADR	12,000		23,880
Lojas Americanas SA	500,000		22,189
Petroleo Brasileiro SA	9,200		184,795
Sadia SA, ADR	9,000		24,174
Tam SA	1,440		44,725
Telemig Celular Participacoes SA	5,300,000		8,839
Telesp Celular Participacoes SA *	7,300		22,915
Tim Participacoes SA	13,200,000		37,983
Usinas Siderurgicas de Minas Gerais SA	800		25,120
Votorantim Celulose e Papel SA *	600		9,768
Weg SA	3,400		14,453

			1,492,564
Germany - 0.17%
Henkel KGaA-Vorzug, Non-Voting (a)	1,204		153,544
Porsche AG, Non-Voting	161		164,811
RWE AG, Non-Voting	766		63,224
Volkswagen AG, Non-Voting	2,291		129,950

			511,529
Italy - 0.02%
Unipol SpA	18,278		55,123
South Africa - 0.00%
Lereko Mobility Proprietary, Ltd.	64		355
South Korea - 0.09%
Hyundai Motor Company	820		41,027
LG Electronics, Inc.	310		12,012
Samsung Electronics Company, Ltd.	450		234,046

			287,085

TOTAL PREFERRED STOCKS (Cost $2,090,045)		$	2,346,656

The accompanying notes are an integral part of the financial statements. 254

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Equity Index Fund (continued)
		Shares or
		Principal
		Amount		Value


WARRANTS - 0.00%
Hong Kong - 0.00%
China Overseas Land & Investment, Ltd.
(Expiration Date 07/18/07, strike price
HKD$4.5)		7,365	$	1,089
Indonesia - 0.00%
Bank Pan Indonesia Tbk PT
(Expiration Date 10/07/2009, strike
price IDR$400.00)		25,750		494
Switzerland - 0.00%
Swisscom AG
(Expiration Date 09/13/06, strike price
CHF$450.00)		396		1,005

TOTAL WARRANTS (Cost $1,149)			$	2,588


RIGHTS - 0.00%
Italy - 0.00%
Autostrade (Expiration Date 09/08/06, price
EUR$21.31)		5,934		7

TOTAL RIGHTS (Cost $0)			$	7


SHORT TERM INVESTMENTS - 22.75%
AIM Short-Term Investment Trust,
STIC Prime Portfolio, Institutional
Class	$	7,686,963	$	7,686,963
Canfor Pulp Income Fund		180		1,960
CI Financial Income Fund		1,500		40,867
Enerplus Resources Fund	CAD	2,600		150,951
Federated Prime Obligations Fund	$	3,019,133		3,019,133
State Street Navigator Securities Lending
Prime Portfolio (c)		59,053,314		59,053,314
Yellow Pages Income Fund	CAD	4,800		63,456

TOTAL SHORT TERM INVESTMENTS
(Cost $70,017,171)			$	70,016,644

Total Investments (International Equity Index Fund)
(Cost $334,559,078) - 118.18%			$	363,700,624
Liabilities in Excess of Other Assets - (18.18)%				(55,941,607)

TOTAL NET ASSETS - 100.00%			$	307,759,017



International Opportunities Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 98.18%
Australia - 1.08%
CSL, Ltd. (a)		155,965	$	6,050,422
Austria - 1.00%
Erste Bank der Oesterreichischen
Sparkassen AG		93,292		5,633,027
Bermuda - 2.05%
Esprit Holdings, Ltd.		1,381,000		11,489,170

International Opportunities Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Brazil - 2.08%
Gafisa SA *	251,932	$	3,295,152
Unibanco - Uniao De Bancos
Brasileiros SA, ADR	115,595		8,363,298

			11,658,450
Canada - 3.11%
Canadian National Railway Company	135,653		5,800,522
Shoppers Drug Mart Corp.	277,186		11,679,558

			17,480,080
China - 1.27%
CNOOC, Ltd., ADR (a)	81,882		7,137,654
France - 9.55%
JC Decaux SA (a)	211,496		5,857,543
LVMH Moet Hennessy SA (a)	127,355		13,090,533
Vallourec SA (a)	64,182		14,368,345
Veolia Environnement SA (a)	362,533		20,289,953

			53,606,374
Germany - 6.36%
Continental AG	227,658		24,317,831
Hypo Real Estate Holding AG	183,335		11,351,315

			35,669,146��
Hong Kong - 1.42%
Shangri-La Asia, Ltd.	4,035,778		7,991,691
India - 0.90%
ICICI Bank, Ltd., SADR (a)	188,393		5,028,209
Italy - 1.22%
Banca Intesa SpA	421,250		2,818,363
San Paolo-IMI SpA	192,547		4,029,726

			6,848,089
Japan - 18.12%
Credit Saison Company, Ltd.	247,476		11,155,452
Daikin Industries, Ltd. (a)	114,205		3,493,638
Marubeni Corp. (a)	2,332,000		12,459,324
Mitsubishi UFJ Financial Group, Inc.	802		10,934,344
Mitsui Trust Holdings, Inc.	484,000		5,666,704
Nippon Electric Glass Company, Ltd. (a)	413,305		10,037,231
Nomura Securities Company, Ltd.	145,000		2,804,738
Sega Sammy Holdings, Inc.	336,518		11,498,762
Seiyu, Ltd. * (a)	1,355,000		2,609,433
Sumitomo Realty &
Development Company, Ltd. (a)	320,958		9,462,866
Toyota Motor Corp. (a)	224,335		12,176,848
Yamada Denki Company, Ltd. (a)	87,428		9,386,842

			101,686,182
Mexico - 4.82%
America Movil S.A. de C.V., Series L	445,113		16,607,166
Cemex SA, ADR *	360,693		10,420,421

			27,027,587
Netherlands - 1.53%
ING Groep NV	198,992		8,591,418

The accompanying notes are an integral part of the financial statements. 255

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Opportunities Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Norway - 1.45%
Acergy SA * (a)		462,291	$	8,153,861
Singapore - 3.50%
CapitaLand, Ltd. (a)		1,782,587		5,393,195
DBS Group Holdings, Ltd.		1,245,000		14,243,946

				19,637,141
South Korea - 2.75%
Samsung Electronics Company, Ltd.,
GDR-London		45,465		15,458,100
Sweden - 1.45%
Telefonaktiebolaget LM Ericsson, SADR (a)		243,395		8,129,393
Switzerland - 19.27%
ABB, Ltd.		817,740		10,837,358
Lonza Group AG		212,711		13,845,095
Nestle SA		40,676		13,954,865
Roche Holdings AG NPV (a)		122,604		22,549,119
Syngenta AG *		159,607		23,377,632
UBS AG (a)		417,353		23,562,160

				108,126,229
United Kingdom - 15.25%
BAE Systems PLC		2,099,139		14,794,395
BP PLC		1,241,209		14,095,713
Carphone Warehouse		989,562		5,294,237
Diageo PLC		965,296		17,168,799
Man Group PLC		1,259,573		10,117,211
Reckitt Benckiser PLC		343,106		14,228,287
Tesco PLC		1,373,717		9,858,125

				85,556,767

TOTAL COMMON STOCKS (Cost $483,415,694)			$	550,958,990


SHORT TERM INVESTMENTS - 19.15%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	107,481,210	$	107,481,210

TOTAL SHORT TERM INVESTMENTS
(Cost $107,481,210)			$	107,481,210


REPURCHASE AGREEMENTS - 1.69%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$9,471,039 on 9/1/2006,
collateralized by $9,625,000
Federal Home Loan Mortgage
Corp., 2.75% due 12/28/2006
(valued at $9,661,094, including
interest) (c)	$	9,470,000	$	9,470,000

TOTAL REPURCHASE AGREEMENTS
(Cost $9,470,000)			$	9,470,000

Total Investments (International Opportunities Fund)
(Cost $600,366,904) - 119.02%			$	667,910,200
Liabilities in Excess of Other Assets - (19.02)%				(106,749,490)

TOTAL NET ASSETS - 100.00%			$	561,160,710

The portfolio had the following five top industry concentrations as of
August 31, 2006 (as a percentage of total net assets):
Financial Services	10.22%
Banking	8.38%
Chemicals	6.63%
Electronics	5.49%
Liquor	5.39%


International Small Cap Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 90.78%
Australia - 3.52%
Billabong International, Ltd. (a)	324,316	$	3,661,826
Downer EDI, Ltd. (a)	347,100		1,490,838
PaperlinX, Ltd. (a)	2,195,958		5,763,019
Repco Corp., Ltd. (a)	3,310,055		3,005,036

			13,920,719
Belgium - 1.20%
Barco N.V.	53,950		4,755,171
Bermuda - 5.37%
Bio-Treat Technology, Ltd. (a)	4,517,612		2,426,354
Giordano International, Ltd.	6,390,365		3,623,723
Ngai Lik Industrial Holding, Ltd.	18,284,513		1,669,292
People's Food Holdings, Ltd. (a)	10,481,174		7,194,857
Texwinca Holdings, Ltd.	5,486,907		3,598,226
Yue Yuen Industrial Holdings, Ltd.	953,833		2,759,596

			21,272,048
Brazil - 0.58%
Companhia de Saneamento de Minas Gerais *	244,500		2,284,246
Canada - 9.65%
ATS Automation Tooling Systems, Inc. *	331,900		3,559,981
Domtar, Inc. *	431,222		2,747,133
Dorel Industries, Inc., Class B *	164,900		3,875,705
Legacy Hotels Real Estate Investment, REIT	624,001		4,877,430
Linamar Corp.	98,217		1,202,585
MDS, Inc.	332,277		6,692,680
North West Company	155,533		6,240,153
Open Text Corp. *	357,953		5,828,684
Quebecor World, Inc.	285,346		3,176,671

			38,201,022
Cayman Islands - 0.33%
TCL Communication Technology Holdings,
Ltd. *	37,286,192		1,294,501
China - 2.14%
BYD Company, Ltd., H Shares *	993,269		2,247,865
China Oilfield Services Ltd., H shares	8,017,031		4,494,597
Sinotrans, Ltd., Class H	5,482,000		1,734,063

			8,476,525
Denmark - 2.45%
Vestas Wind Systems AS *	347,110		9,702,461
Finland - 2.34%
Amer Sports Oyj (a)	237,854		5,279,167

The accompanying notes are an integral part of the financial statements. 256

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Finland (continued)
Huhtamaki Oyj (a)	227,926	$	3,997,484

			9,276,651
Germany - 3.05%
Jenoptik AG * (a)	737,145		6,534,940
Vossloh AG (a)	110,805		5,557,912

			12,092,852
Hong Kong - 5.02%
China Pharmaceutical Group, Ltd. *	8,402,384		1,080,422
China Resource Power Holdings, Ltd.	4,873,273		4,311,217
Chitaly Holdings, Ltd.	9,456,729		1,532,153
Dah Sing Financial Group	463,574		3,975,901
Fountain Set Holdings, Ltd.	11,313,425		2,836,739
Lerado Group Holdings	12,649,682		1,089,796
Travelsky Technology, Ltd.	2,277,566		2,662,107
Weiqiao Textile Company, Ltd.	2,136,106		2,370,414

			19,858,749
Indonesia - 0.48%
Astra International Tbk PT	1,560,881		1,900,382
Japan - 4.96%
Meitec Corp. (a)	114,611		3,701,382
Nichii Gakkan Company, Ltd. (a)	373,866		5,903,231
Sohgo Security Services Company, Ltd. (a)	462,573		8,513,977
Tokyo Individualized Educational Institute, Inc. (a)	509,085		1,509,621

			19,628,211
Luxembourg - 0.55%
Thiel Logistik AG *	577,341		2,178,762
Mexico - 0.51%
Promotora Ambiental SA de CV *	2,307,500		2,008,452
Netherlands - 6.96%
Aalberts Industries NV	46,833		3,858,276
Draka Holdings * (a)	216,668		3,927,535
Imtech NV	44,668		2,407,373
OPG Groep NV	68,477		6,447,301
Pyaterochka Holding NV, GDR-USD *	31,845		566,841
Pyaterochka Holding NV-GBP *	108,308		1,917,052
SBM Offshore NV	117,904		3,229,242
Vedior NV	280,804		5,187,116

			27,540,736
Norway - 0.80%
Prosafe ASA (a)	47,544		3,170,051
Singapore - 2.87%
Huan Hsin Holdings, Ltd.	3,335,298		1,112,967
Osim International (a)	4,045,008		4,499,310
Venture Corp., Ltd. (a)	777,229		5,730,539

			11,342,816
South Korea - 7.87%
Daeduck Electronics Company, Ltd.	448,800		3,860,796
Daegu Bank	405,850		6,796,885
Halla Climate Control Company, Ltd.	600,100		6,710,433

International Small Cap Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
South Korea (continued)
Pusan Bank		495,420	$	6,364,422
Sindo Ricoh Company, Ltd.		78,430		4,111,793
Youngone Corp.		747,110		3,322,302

				31,166,631
Sweden - 1.21%
D. Carnegie & Company AB		270,066		4,808,695
Switzerland - 2.14%
Kuoni Reisen Holding AG, Series B *		4,610		2,410,189
Verwaltungs-und Privat-Bank AG		25,155		6,076,185

				8,486,374
Taiwan - 9.04%
Acbel Polytech, Inc.		5,100,000		1,305,268
D-Link Corp.		9,796,599		9,618,230
Fu Sheng Industrial Company, Ltd.		4,922,320		4,323,993
Giant Manufacturing Company, Ltd.		850,000		1,202,696
KYE System Corp.		3,118,087		2,355,222
Pihsiang Machinery Mfg. Company, Ltd.		1,900,000		3,817,441
Taiwan Fu Hsing		2,886,000		2,693,097
Taiwan Green Point Enterprises Company, Ltd.		2,441,796		6,345,895
Test-Rite International Company, Ltd.		7,155,672		4,132,581

				35,794,423
Thailand - 3.43%
BEC World PCL		5,959,479		2,902,421
Glow Energy PCL		6,865,525		5,207,384
Total Access Communication PCL * (a)		1,366,012		5,464,048

				13,573,853
United Kingdom - 12.05%
Bodycote International		1,043,903		4,636,762
Burberry Group PLC		336,989		3,067,365
DS Smith PLC		1,108,462		3,310,459
DX Services PLC		1,343,454		10,592,907
Future PLC		3,705,200		2,237,810
Game Group PLC		6,340,196		11,095,792
iSOFT Group PLC (a)		3,586,009		3,530,121
John Wood Group PLC		801,703		3,496,155
Yule Catto & Company PLC		1,287,994		5,727,080

				47,694,451
United States - 2.26%
GSI Group, Inc. *		381,584		3,438,072
Quebecor World, Inc. (a)		146,526		1,636,695
Steiner Leisure, Ltd. *		100,245		3,857,428

				8,932,195

TOTAL COMMON STOCKS (Cost $330,340,974)			$	359,360,977


SHORT TERM INVESTMENTS - 12.42%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	49,186,127	$	49,186,127

TOTAL SHORT TERM INVESTMENTS
(Cost $49,186,127)			$	49,186,127

The accompanying notes are an integral part of the financial statements. 257

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Cap Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 6.78%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$26,835,944 on 09/01/2006,
collateralized by $27,200,000
Federal National Mortgage
Association, 5.125% due
12/15/2008 (valued at
$27,370,000, including interest) (c)	$	26,833,000	$	26,833,000

TOTAL REPURCHASE AGREEMENTS
(Cost $26,833,000)			$	26,833,000

Total Investments (International Small Cap Fund)
(Cost $406,360,101) - 109.98%			$	435,380,104
Liabilities in Excess of Other Assets - (9.98)%				(39,515,014)

TOTAL NET ASSETS - 100.00%			$	395,865,090

The portfolio had the following five top industry concentrations as of August 31, 2006 (as a percentage of total net assets):

Electrical Equipment	5.84%
Banking	4.86%
Apparel & Textiles	4.76%
Business Services	4.40%
Software	4.03%

International Small Company Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 98.09%
Australia - 5.79%
ABB Grain, Ltd.	31,091	$	158,446
Adelaide Bank, Ltd. (a)	21,763		225,635
Adelaide Brighton, Ltd. (a)	105,031		189,102
Adsteam Marine, Ltd. (a)	56,048		108,608
Alesco Corp., Ltd. (a)	17,181		118,620
Allegiance Mining NL *	149,191		35,853
Amadeus Energy, Ltd. *	46,767		38,890
Amalgamated Holdings, Ltd.	10,448		40,173
Ansell, Ltd. (a)	30,331		217,974
Aquila Resources, Ltd. *	8,911		45,752
ARB Corp., Ltd.	16,596		43,048
ARC Energy, Ltd. *	36,745		43,170
Aspen Group (a)	36,202		43,084
Ausdrill, Ltd. *	39,839		47,869
Auspine, Ltd.	13,590		43,545
Austal, Ltd. *	37,191		90,794
Austar United Communications, Ltd. * (a)	85,750		76,213
Austereo Group, Ltd. (a)	68,999		98,172
Australian Agricultural Company, Ltd.	54,556		76,582
Australian Infrastructure Fund (a)	68,600		113,043
Australian Pipeline Trust (a)	53,406		196,383

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Australia (continued)
Australian Worldwide Exploration, Ltd. * (a)	74,302	$	185,360
AVJennings, Ltd.	46,840		38,771
Babcock & Brown Environmental
Investments, Ltd. *	19,026		32,223
Ballarat Goldfields NL *	289,292		51,865
Bank of Queensland, Ltd. (a)	19,912		232,268
BayCorp Advantage, Ltd. (a)	39,472		88,232
Beach Petroleum, Ltd.	90,933		116,546
Bendigo Mining, Ltd. * (a)	31,918		38,595
Biota Holdings, Ltd. *	39,986		37,674
Bolnisi Gold NL	53,676		100,326
Boom Logistics, Ltd.	25,797		82,265
Bradken, Ltd.	22,400		99,800
Cabcharge Australia, Ltd.	19,412		111,071
Campbell Brothers, Ltd.	10,068		142,864
Candle Australia, Ltd. *	16,055		42,869
CBH Resources, Ltd. * (a)	158,181		54,304
Cellestis, Ltd. *	15,855		38,465
Citigold Corp, Ltd. *	151,498		60,100
City Pacific, Ltd. (a)	14,563		50,773
Commander Communications, Ltd. * (a)	51,087		76,779
Compass Resources NL *	15,577		49,674
ConnectEast Group *	204,500		180,195
Consolidated Rutile, Ltd.	52,500		24,632
Corporate Express Australia, Ltd. (a)	17,731		68,311
Count Financial, Ltd. (a)	24,455		41,791
Crane Group, Ltd. (a)	14,788		124,099
David Jones, Ltd. (a)	90,909		244,821
Downer EDI, Ltd. (a)	186,934		802,905
Duet Group	70,700		145,630
Energy Developments, Ltd.	25,952		88,105
Envestra, Ltd.	141,700		124,318
Equigold NL	27,470		30,597
FKP Property Group	36,437		148,718
Fleetwood Corp., Ltd.	7,891		41,779
Flight Centre, Ltd. * (a)	15,759		138,379
Forest Enterprises Australia, Ltd. *	81,488		36,679
Funtastic, Ltd. (a)	32,287		37,687
Futuris Corp., Ltd. (a)	80,039		130,672
Gindalbie Metals, Ltd. *	112,045		41,457
GrainCorp., Ltd.	3,774		23,321
GRD, Ltd. *	30,341		51,850
Great Southern Plantations, Ltd. (a)	42,877		89,955
GUD Holdings, Ltd. (a)	13,336		71,930
Gunns, Ltd. (a)	55,706		117,295
GWA International, Ltd. (a)	49,659		117,443
Hardman Resources, Ltd. * (a)	123,098		135,702
Herald Resources, Ltd. *	17,198		14,826
Hills Industries, Ltd. (a)	35,500		135,415
Horizon Oil, Ltd. *	153,662		40,444
Housewares International, Ltd.	38,553		45,295
HPAL, Ltd. (a)	31,154		38,266

The accompanying notes are an integral part of the financial statements. 258

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Australia (continued)
IBA Health, Ltd.	60,537	$	40,180
IBT Education, Ltd.	26,000		34,910
Incitec Pivot, Ltd.	11,723		228,059
Independence Group NL *	19,208		50,702
Indophil Resources NL *	72,190		45,436
Infomedia, Ltd.	87,333		49,304
Integrated Group, Ltd. *	18,608		29,812
Invocare, Ltd. (a)	11,197		44,419
IOOF Holdings, Ltd.	13,384		86,586
Iress Market Technology, Ltd. (a)	19,452		86,072
IWL, Ltd.	11,971		41,371
JB Hi-Fi, Ltd. (a)	21,677		82,522
Jubilee Mines NL (a)	15,147		106,081
Just Group, Ltd.	31,400		82,405
Kingsgate Consolidated, Ltd. (a)	11,709		47,522
MacArthur Coal, Ltd.	24,217		92,191
Macmahon Holdings, Ltd.	112,511		70,384
Miller's Retail, Ltd. *	64,163		79,788
Minara Resources, Ltd. (a)	21,175		57,833
Mincor Resources NL	54,880		51,079
Mineral Deposits, Ltd. *	39,608		43,059
Monadelphous Group, Ltd. (a)	15,546		82,072
Mortgage Choice, Ltd.	74		148
Mount Gibson Iron, Ltd. * (a)	64,184		35,990
New Hope Corp., Ltd.	144,455		148,776
Nido Petroleum, Ltd. *	256,103		40,053
Oakton, Ltd.	15,760		43,885
OAMPs, Ltd.	31,615		88,999
Oceana Gold, Ltd. * (a)	73,000		43,996
Pacifica Group, Ltd. (a)	44,486		50,908
Pan Australian Resources, Ltd. * (a)	123,891		26,465
PaperlinX, Ltd. (a)	191,164		501,686
Peet & Company, Ltd.	16,000		45,164
Peptech, Ltd. *	37,842		35,798
Perilya, Ltd. (a)	22,014		51,727
Perseverance Corp., Ltd. *	143,419		37,201
Petsec Energy, Ltd. *	36,147		72,251
Pharmaxis, Ltd. *	50,510		84,775
PMP, Ltd. *	52,337		60,690
Primary Health Care, Ltd. (a)	21,521		193,080
Prime Television, Ltd. *	3,886		11,562
Programmed Maintenance Services, Ltd.	14,398		49,319
pSivida, Ltd. *	95,189		27,232
RCR Tomlinson, Ltd.	22,598		37,238
Rebel Sport, Ltd.	25,251		64,342
Resolute Mining, Ltd. *	36,122		43,265
Ridley Corp., Ltd. *	45,977		41,565
Roc Oil Company, Ltd. * (a)	41,843		122,900
Rural Press, Ltd.	22,812		192,480
S8, Ltd.	12,095		32,665
SAI Global, Ltd.	16,292		42,259
Sally Malay Mining, Ltd. *	43,373		37,391

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Australia (continued)
Select Harvests, Ltd.	5,918	$	61,853
ServCorp, Ltd. (a)	13,939		62,635
Silex Systems, Ltd. *	13,874		40,962
Sino Gold, Ltd. * (a)	25,236		92,027
Sino Strategic International, Ltd. *	11,948		27,254
Skilled Group, Ltd.	12,505		51,516
Smorgon Steel Group, Ltd. (a)	39,905		53,581
SMS Management & Technology, Ltd. *	12,633		35,660
Southern Cross Broadcasting Australia, Ltd.	5,074		44,903
Spotless Group, Ltd. (a)	44,521		146,050
St. Barbara, Ltd. *	100,516		38,725
Straits Resources, Ltd.	31,023		95,616
STW Communications Group, Ltd. (a)	36,346		75,421
Summit Resources, Ltd. *	45,100		51,438
Sunland Group, Ltd.	50,746		89,043
Ten Network Holdings, Ltd. *	85,802		177,392
Thakral Holdings Group	137,513		86,025
The Reject Shop, Ltd.	8,900		48,276
TimberCorp., Ltd. (a)	49,460		103,766
Transfield Services, Ltd.	27,997		178,561
UXC, Ltd. *	52,216		46,209
Vision Group Holdings, Ltd.	10,200		30,504
Vision Systems, Ltd. (a)	61,645		99,231
Western Areas NL *	27,319		62,525
WHK Group, Ltd.	18,862		84,180

			12,793,247
Austria - 1.00%
Palfinger AG	437		43,046
RHI AG *	2,744		94,110
Wienerberger Baustoffindustrie AG	43,216		2,071,494

			2,208,650
Belgium - 0.75%
Barco N.V.	1,899		167,378
Bekaert SA	500		48,995
CFE (CIE Francois D'enter)	75		72,150
Deceuninck NV	4,147		108,860
Duvel Moortgat SA	873		43,610
Econocom Group	5,040		38,684
Euronav NV (a)	3,000		103,926
Exmar NV	1,797		56,781
Icos Vision Systems NV *	922		35,372
Innogenetics *	3,366		40,175
Ion Beam Applications *	2,557		39,024
Melexis NV	4,995		82,685
Nord-Sumatra Investissements *	47		40,284
Omega Pharma SA	5,762		331,623
Option NV * (a)	3,580		93,564
Quick Restaurants SA	2,405		88,144
Recticel SA	3,266		38,480
SA D'Ieteren Trading NV	569		189,616

The accompanying notes are an integral part of the financial statements. 259

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Belgium (continued)
Van De Velde NV	870	$	38,007

			1,657,358
Bermuda - 0.51%
Cafe de Coral Holdings, Ltd.	58,000		88,451
China Oriental Group Company, Ltd.	134,000		27,568
Digital China Holdings, Ltd.	141,000		49,134
Giordano International, Ltd.	1,113,708		631,540
South China Morning Post, Ltd.	146,000		54,443
Texwinca Holdings, Ltd.	423,961		278,027

			1,129,163
Brazil - 2.17%
Aracruz Celulose SA, ADR (a)	92,153		4,785,505
Canada - 5.67%
Aastra Technologies, Ltd. *	4,100		107,441
Agricore United	5,400		38,061
Algoma Steel, Inc. *	5,400		179,813
Angiotech Pharmaceuticals, Inc. *	3,200		38,025
ATS Automation Tooling Systems, Inc. *	2,800		30,033
Ballard Power Systems, Inc. *	21,400		131,109
BPO Properties, Ltd.	1,050		47,915
CAE, Inc.	298,402		2,553,533
Calfrac Well Services, Ltd.	1,600		36,593
Canadian Western Bank	5,517		219,653
Cardiome Pharma Corp. *	11,800		163,141
Cascades, Inc.	17,950		197,886
Catalyst Paper Corp. *	43,000		123,562
Centurion Energy International, Inc. *	5,700		37,857
CHUM, Ltd., Class B	1,200		50,802
Cogeco Cable Inc.	1,500		34,211
Denison Mines, Inc. *	3,200		42,940
Domtar, Inc. *	381,188		2,428,388
Dorel Industries, Inc., Class B *	1,800		42,306
Dundee Corp., Class A *	1,300		52,451
Dundee Wealth Management, Inc.	21,542		214,125
Emergis, Inc. *	20,420		97,981
Enerflex Systems, Ltd.	10,300		306,119
Forzani Group, Ltd. *	8,400		127,824
Galleon Energy, Inc. *	9,650		165,680
High River Gold Mines, Ltd. *	48,300		104,749
Hummingbird, Ltd. *	1,800		49,869
Imax Corp. *	9,300		42,019
Kingsway Financial Services, Inc.	15,200		312,612
Labopharm Inc. *	12,200		88,966
Laurentian Bank of Canada	6,400		169,448
Leon's Furniture, Ltd.	811		31,842
Linamar Corp.	39,306		481,269
LionOre Mining International, Ltd. *	44,138		277,595
Martinrea International, Inc. *	14,200		96,236
MEGA Brands, Inc. *	2,100		43,835
MOSAID Technologies, Inc.	1,600		41,914
North American Palladium, Ltd. *	10,150		77,410

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Canada (continued)
Northern Orion Resources, Inc. *	37,700	$	175,785
Open Text Corp. *	71,989		1,172,224
Pason Systems, Inc.	1,500		22,392
Patheon, Inc. *	21,400		99,395
Petrobank Energy & Resources, Ltd. *	12,700		175,584
QLT, Inc. *	24,600		188,059
Quebecor World, Inc.	55,545		618,366
Reitman's Canada, Ltd., Class A	400		7,551
Saskatchewan Wheat Pool *	20,300		141,246
ShawCor, Ltd.	2,500		42,245
Sierra Wireless, Inc. *	6,250		72,290
Stantec, Inc. *	10,100		182,442
Tesco Corp. *	7,300		118,671
Tundra Semiconductor Corp. *	2,300		24,691
Uni-Select, Inc.	4,200		117,235
Zarlink Semiconductor, Inc. *	33,700		72,781

			12,516,170
China - 0.03%
Solomon Systech International, Ltd.	320,000		67,893
Denmark - 1.02%
Alm. Brand Skadesforsikring A/S *	3,700		200,818
Amagerbanken A/S	1,350		91,908
AS Det Ostasiatiske Kompagni	4,300		183,794
Bang & Olufsen AS - B Series (a)	2,100		214,991
Bavarian Nordic A/S *	1,050		69,323
Dalhoff Larsen & Horneman A/S	2,500		43,943
DFDS A/S	550		46,215
DiBa Bank A/S	110		35,086
EDB Gruppen	700		38,053
Fionia Bank A/S	125		29,624
Fluegger A/S	300		33,851
Forstaedernes Bank A/S	700		87,629
Genmab AS * (a)	5,200		193,504
Nordjyske Bank A/S	1,190		35,712
Pharmexa A/S *	10,600		31,083
Ringkjoebing Landbobank A/S (a)	535		86,974
Royal UNIBREW A/S	875		94,531
Satair A/S	1,000		39,099
Schouw & Company	2,450		128,353
SimCorp. A/S	1,150		190,503
Spar Nord Bank AS	12,250		270,990
TK Development Corp. *	6,500		66,322
Vestjysk Bank A/S	700		34,451

			2,246,757
Finland - 1.51%
Aldata Solution Oyj *	13,900		33,074
Amer Sports Oyj (a)	41,993		932,034
Aspo Oyj	4,950		37,930
eQ Oyj	3,000		12,703
Finnair OYJ	400		6,002
Finnlines OYJ	6,400		130,995

The accompanying notes are an integral part of the financial statements. 260

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Finland (continued)
F-Secure Oyj	13,850	$	39,688
Huhtamaki Oyj (a)	45,417		796,547
KCI Konecranes Oyj	51,234		1,015,887
Olvi Oyj	2,000		42,855
Poyry Oyj	7,200		92,106
Ramirent Oyj	1,600		65,907
Uponor Oyj	3,000		81,514
Vaisala Oyj	1,800		59,869

			3,347,111
France - 3.32%
Ales Groupe	1,081		22,555
Alten *	3,914		119,266
Altran Technologies SA * (a)	16,346		156,411
April Group	2,848		141,724
Archos *	1,721		88,064
Assystem	4,109		101,239
Audika	1,625		38,457
Avanquest Software *	1,218		22,203
Bacou Dalloz	1,599		192,586
Beneteau SA	2,321		192,994
Bonduelle S.C.A. (a)	961		84,826
Bongrain SA	588		40,619
Bull SA * (a)	11,140		75,672
Canal Plus	16,823		173,888
Carbone Lorraine	2,556		133,668
Cegid (a)	1,808		76,302
CFF Recycling	3,722		140,175
Club Mediterranee * (a)	2,334		124,208
Compagnie Plastic-Omnium SA	915		39,680
Delachaux SA	1,765		99,347
Electricite de Strasbourg	1,094		224,060
Etam Developpement SA	1,713		128,194
Faurecia *	1,503		93,232
Fleury Michon SA	344		20,507
Foncia Groupe	1,152		55,986
Generale de Sante (a)	3,037		107,151
Geodis	799		135,124
GFI Informatique	9,954		69,780
GL Events	1,835		82,160
Groupe Crit	1,884		84,354
Groupe Go Sport *	364		31,850
Groupe Open *	2,447		43,668
Groupe Steria SCA (a)	2,803		140,131
Guerbet	558		88,871
Guyenne et Gascogne SA	1,445		176,071
IMS-Intl Metal Service	1,512		36,944
Ingenico *	4,381		99,254
IPSOS	1,456		53,680
Kaufman & Broad SA	2,353		132,443
Lafuma SA	416		34,910
Laurent-Perrier	1,018		75,076

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
France (continued)
Lectra	6,134	$	38,136
LISI (a)	610		42,919
LVL Medical Groupe SA *	3,125		39,897
Manitou BF SA	3,693		158,027
Manutan (Societe)	1,304		83,407
Mr Bricolage	1,756		35,740
Nexans SA	4,405		366,281
Norbert Dentressangle	1,107		79,303
Orpea * (a)	2,098		144,929
Penauille Polyservices *	2,528		37,126
Petit Forestier	643		41,087
Pierre & Vacances	1,327		145,821
Pinguely-Haulotte	1,656		48,745
Provimi SA	2,418		86,301
Radiall SA	349		35,717
Rallye SA	5,515		268,092
Robertet SA	258		40,266
Rubis	1,582		125,170
SEB SA (a)	1,821		217,810
Sopra Group SA	2,126		153,934
Spir Communication	493		72,905
SR Teleperformance (a)	6,339		223,489
Stallergenes	2,320		88,145
STEF-TFE	799		44,156
Sucriere de Pithiviers-Le-Vieil	73		66,303
Synergie SA	816		35,178
Tessi SA	206		11,888
Toupargel-Agrigel	936		53,176
Trigano SA	2,853		141,243
Ubi Soft Entertainment SA *	2,883		153,572
Union Financiere de France BQE SA	725		44,054
Viel et Compagnie	7,076		38,290
Vilmorin et Compagnie	901		72,383
Virbac SA	1,389		78,094
Vranken - Pommery Monopole	721		41,505

			7,330,419
Germany - 3.68%
Aareal Bank AG *	5,955		265,714
Adlink Internet Media AG *	4,151		82,308
ADVA AG Optical Networking *	4,237		31,274
Aixtron AG *	20,549		77,022
Augusta Technologie AG *	2,266		35,510
AWD Holding AG (a)	4,069		129,611
Baader Wertpapierhandelsbank AG	6,179		68,927
Balda AG	3,189		32,391
Beate Uhse AG	5,482		33,662
Bechtle AG	3,518		74,347
Bilfinger Berger AG	2,926		160,204
Biotest AG	1,095		43,592
Boewe Systec AG (a)	1,342		77,494
CENTROTEC Sustainable AG *	1,081		32,166

The accompanying notes are an integral part of the financial statements. 261

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Germany (continued)
Comdirect Bank AG	8,396	$	82,810
Conergy AG (a)	1,100		57,807
CTS Eventim AG	2,979		92,033
Curanum AG	4,385		39,715
Douglas Holding AG	8,523		379,862
Drillisch AG *	6,749		39,456
Duerr AG *	2,766		70,768
DVB Bank AG	11		2,842
EM.TV AG *	9,200		34,837
Epcos AG * (a)	17,467		242,440
Escada AG *	2,739		85,494
Evotec AG * (a)	8,820		38,926
Fielmann AG	1,902		99,272
Fuchs Petrolub AG	1,810		93,775
Gerry Weber International AG (a)	3,420		72,232
Gesco AG	829		42,314
GFK AG	2,880		121,248
GPC Biotech AG * (a)	5,604		81,296
Grenkeleasing AG	1,687		101,452
Hawesko Holding AG	716		40,485
Indus Holding AG (a)	2,245		75,474
IWKA AG * (a)	6,306		118,987
Jenoptik AG *	20,577		182,419
Kloeckner-Werke AG (a)	12,754		190,076
Kontron AG (a)	7,100		82,017
Krones AG	1,956		244,216
KSB AG *	139		42,854
KWS Saat AG	415		37,375
Leoni AG	5,350		186,772
Mania Technologie AG *	6,080		30,334
MasterFlex AG	1,234		35,155
Mediclin AG *	8,648		43,035
Medion AG (a)	5,908		70,288
Mobilcom AG * (a)	10,782		229,100
Morphosys AG *	835		46,882
MTU Aero Engines Holding AG	6,500		224,508
MVV Energie AG	7,457		214,636
Nemetschek AG	1,701		44,934
Norddeutsche Affinerie AG (a)	6,383		149,999
Pfeiffer Vacuum Technology AG	2,709		168,804
Pfleiderer AG	5,794		131,637
Qiagen AG * (a)	23,319		333,509
QSC AG * (a)	22,823		125,252
R Stahl AG	1,092		39,114
Rational AG	513		92,539
REpower Systems AG *	800		52,398
Rhoen-Klinikum AG	2,456		100,256
Sartorius AG	997		41,757
SGL Carbon AG * (a)	12,140		226,273
SHB Stuttgarter Finanz- und Beteiligungs AG	951		41,984
Singulus Technologies * (a)	6,859		89,411
Sixt AG (a)	2,811		137,510

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Germany (continued)
Software AG	5,638	$	326,650
Strabag AG	320		43,351
Suess MicroTec AG *	4,728		44,878
Takkt AG	4,283		61,913
Techem AG	3,577		163,405
Vossloh AG (a)	7,123		357,285
Wincor Nixdorf AG	1,125		156,494
Wire Card AG *	12,980		84,186
Wuerttembergische Lebensversicherung AG	1,865		94,120

			8,125,073
Greece - 1.29%
Aspis Bank SA *	7,900		37,797
Astir Palace Hotel SA *	6,080		45,423
Athens Medical Center SA	8,110		42,121
Attica Holdings SA	16,150		74,376
Autohellas SA	8,930		43,638
Bank of Attica *	5,325		36,240
Bank of Greece	1,980		235,941
Blue Star Maritime SA	12,260		49,560
C. Rokas SA	3,530		78,303
Delta Holdings SA	5,900		92,533
Egnatia Bank SA	10,650		77,657
Ethniki General Insurance Company *	10,740		82,435
Forthnet SA *	3,580		32,974
Fourlis SA	2,950		43,625
Frigoglass SA	5,740		104,416
GEK Group of Companies, SA	4,450		39,279
Geniki Bank *	7,120		85,982
Halcor SA	19,210		88,468
Hellenic Technodomiki Tev SA	25,060		266,723
Heracles General Cement Company	4,800		88,422
Iaso SA	11,020		83,738
Intracom SA *	20,200		125,070
J&P-Avax SA	12,040		85,020
Lamda Detergent SA	6,403		40,791
Marfin Financial Group SA Holdings	3,000		100,933
Maritime Company of Lesvos *	23,670		39,061
Metka SA	4,120		39,423
Michaniki SA	17,800		71,955
Minoan Lines Shipping SA *	16,450		75,336
Mytilineos Holdings SA	3,990		102,084
Neochimiki Lv Lavrentiadis	2,640		44,039
Pantechniki SA	9,420		38,562
S&B Industrial Minerals SA	3,540		40,213
Sarantis SA	3,820		37,530
Terna SA	6,110		81,289
Viohalco SA	18,430		195,686

			2,846,643
Hong Kong - 2.37%
Allied Group, Ltd.	34,000		87,088
Allied Properties HK, Ltd.	56,000		61,063

The accompanying notes are an integral part of the financial statements. 262

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Hong Kong (continued)
Asia Financial Holdings, Ltd.	98,000	$	52,044
Asia Satellite Telecom Holdings Company, Ltd.	331,720		567,302
Asia Standard International Group	1,150,000		35,342
Champion Technology Holdings, Ltd.	248,000		40,818
Chen Hsong Holdings	74,000		41,011
Chevalier International Holdings, Ltd.	32,000		38,349
China Aerospace International Holdings, Ltd. *	509,400		41,921
China Gas Holdings, Ltd.	248,000		41,137
China Green Holdings, Ltd.	93,000		40,898
China Insurance International Holdings
Company, Ltd. *	132,000		105,234
China Metal International Holdings, Inc.	108,000		40,273
China Pharmaceutical Group, Ltd. *	346,000		44,490
China Rare Earth Holdings, Ltd.	212,000		43,071
China Resources Logic, Ltd.	390,000		36,107
China Solar Energy Holdings, Ltd. *	540,000		34,718
Chinese People Gas Holdings Company, Ltd. *	654,000		29,013
Chow Sang Sang Holdings	108,000		48,189
CITIC 21CN Company, Ltd. *	296,000		35,016
CITIC Resources Holdings, Ltd. *	364,000		69,739
Clear Media, Ltd. *	37,000		41,867
COFCO International, Ltd.	106,000		71,285
Comba Telecom Systems Holdings, Ltd.	160,000		47,731
Cosco International Holdings, Ltd.	176,000		49,109
Dickson Concepts International, Ltd.	37,000		39,346
EganaGoldpfeil Holdings, Ltd.	130,000		59,342
Emperor Entertainment Hotel, Ltd.	165,000		38,402
Far East Consortium International, Ltd.	175,000		74,258
Fong's Industries Company, Ltd.	66,000		43,706
FU JI Food & Catering Services Holdings, Ltd.	45,000		70,709
Fubon Bank (Hong Kong), Ltd.	110,000		40,877
Fushan International Energy Group, Ltd. *	84,000		13,933
Global Bio-Chem Technology Group Company	236,000		78,596
Glorious Sun Enterprises, Ltd.	88,000		42,433
Golden Resorts Group, Ltd. *	100,000		24,303
GZI Transportation, Ltd. *	100,000		44,233
Harbour Centre Development, Ltd.	25,000		39,540
Heng Tai Consumables Group, Ltd.	325,000		30,089
HKR International, Ltd.	135,200		68,148
Hongkong Chinese, Ltd.	298,000		40,617
Hung Hing Printing Group, Ltd.	134,216		78,697
Hutchison Harbour Ring, Ltd.	494,000		35,572
I-CABLE Communications, Ltd.	179,000		33,374
Imagi International Holdings, Ltd. *	28,000		35,860
Integrated Distribution Services Group, Ltd.	24,000		41,106
K Wah International Holdings, Ltd.	210,000		68,317
Kingway Brewery Holdings, Ltd.	106,000		41,980
Kowloon Development Company, Ltd.	8,000		15,348
Lai Sun Development *	1,283,000		58,566
Li Ning Company, Ltd.	99,000		108,332
Liu Chong Hing Bank, Ltd.	43,000		93,443
Liu Chong Hing Investment	40,000		46,805

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Hong Kong (continued)
Lung Kee (Bermuda) Holdings	76,000	$	34,692
Midland Holdings, Ltd.	98,000		43,601
Mingyuan Medicare Development
Company, Ltd. *	430,000		37,598
Minmetals Resources, Ltd. *	140,000		40,144
Nan Hai Corp., Ltd. *	6,250,000		37,772
Neo-China Group Holdings, Ltd.	420,000		34,564
Next Media, Ltd.	150,000		82,937
Oriental Press Group	202,000		36,364
Pacific Andes International Holdings	198,000		38,699
Pacific Basin Shipping, Ltd.	173,000		93,430
Pacific Century Premium Developments, Ltd.	195,000		54,411
Peace Mark Holdings, Ltd.	90,000		54,970
Pico Far East Holdings, Ltd.	200,000		42,433
Playmates Holdings, Ltd.	384,000		40,489
Ports Design, Ltd.	52,000		80,371
Prime Success International Group	122,000		67,142
Public Financial Holdings, Ltd.	52,000		40,185
PYI Corp., Ltd.	162,000		45,619
Regal Hotels International Holdings, Ltd.	838,000		66,808
Road King Infrastructure, Ltd.	56,000		65,527
SA SA International Holdings, Ltd.	112,000		34,708
Shanghai Real Estate, Ltd.	222,000		48,243
Shell Electric Manufacturing Company	102,000		36,330
Shenzhen International Holdings	1,002,500		45,762
Shougang Concord International Enterprises
Company, Ltd.	528,000		36,662
Shui On Construction and Materials, Ltd.	22,000		38,020
Silver Grant International	182,000		47,507
Singamas Container Holdings, Ltd.	60,000		30,783
Sino-I Technology, Ltd. *	2,940,000		40,072
Sinolink Worldwide Holdings	262,000		48,849
Sinopec Kantons Holdings, Ltd.	122,000		38,905
Symphony Holdings, Ltd.	296,000		38,061
TAI Cheung Holdings	76,000		37,624
TCL Multimedia Technology Holdings, Ltd. *	390,000		29,587
Tian An China Investment *	120,000		69,436
Tianjin Development Holdings	68,000		43,107
Titan Petrochemicals Group, Ltd.	600,000		40,119
Top Form International Ltd	226,000		40,975
Truly International Holdings	34,000		42,364
Varitronix International, Ltd.	68,000		41,096
Victory City International Holdings	128,000		40,818
Vision Grande Group Holdings, Ltd. *	54,000		42,078
Vitasoy International Holdings, Ltd. *	114,000		47,348
Wai Kee Holdings, Ltd.	130,000		40,119
Wing On Company International, Ltd.	7,000		11,593
Yip's Chemical Holdings, Ltd.	112,000		44,933

			5,241,602
Hungary - 0.04%
EGIS Nyrt.	672		96,814

The accompanying notes are an integral part of the financial statements. 263

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Indonesia - 0.19%
Bakrie and Brothers Tbk PT *	2,361,500	$	42,739
Bank Niaga Tbk PT	749,500		57,546
Bank Pan Indonesia Tbk PT *	915,000		46,167
Berlian Laju Tanker Tbk PT	306,500		66,901
Indofood Sukses Makmur Tbk PT	687,500		89,736
Lippo Karawaci Tbk PT *	431,000		41,601
Ramayana Lestari Sentosa Tbk PT	475,500		40,681
Tempo Scan Pacific Tbk PT	54,000		40,276

			425,647
Ireland - 0.95%
Abbey PLC	6,015		68,867
DCC PLC- London	1,967		49,571
DCC PLC	13,674		342,852
Dragon Oil PLC *	34,938		114,418
FBD Holdings PLC - Dublin *	3,299		164,168
FBD Holdings PLC - London *	1,517		75,490
Greencore Group PLC - Dublin	44,221		231,370
Iaws Group PLC, ADR	18,171		367,042
IFG Group PLC	17,394		45,838
Independent News & Media PLC	41,836		133,797
Irish Continental Group PLC *	2,933		40,522
Irish Continental Group PLC *	2,896		40,122
Kenmare Resources PLC *	66,301		50,889
McInerney Holdings PLC	5,541		85,060
Paddy Power PLC	7,635		139,181
United Drug PLC	34,029		158,020

			2,107,207
Israel - 0.72%
AudioCodes, Ltd. *	3,202		32,191
Azorim-Investment Development &
Construction Company, Ltd.	2,942		40,888
Blue Square-Israel, Ltd.	3,465		40,798
Direct Insurance Financial Investments, Ltd. *	11,285		40,159
Electra (Israel), Ltd. *	392		48,873
Elron Electronic Industries	3,817		40,592
Formula Systems, Ltd. *	3,301		34,470
Israel Salt Industries, Ltd.	6,825		41,812
Ituran Location and Control, Ltd.	2,562		36,228
Orbotech, Ltd. *	45,156		1,084,195
Super-Sol, Ltd. *	13,963		41,924
Tadiran Communications Industries, Ltd.	2,432��		76,249
Union Bank of Israel *	7,661		32,592

			1,590,971
Italy - 1.99%
Actelios SpA *	8,203		96,962
AEM Torino SpA (a)	16,049		45,014
Amplifon SpA	31,967		287,483
Astaldi SpA	11,817		78,306
Banca Intermobiliare SpA	17,737		193,660
Banca Popolare dell'Etruria e del Lazio	11,446		239,255
Banca Profilo SpA	11,108		35,241

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Italy (continued)
Banco di Desio e della Brianza SpA	11,958	$	105,551
Biesse SpA	3,083		46,696
Bonifica Ferraresi e Imprese Agricole SpA	918		40,151
Brembo SpA	12,719		136,349
Caltagirone Editore SpA (a)	9,281		80,319
Caltagirone SpA	6,678		72,742
Cementir SpA	24,008		184,888
Credito Artigiano SpA	21,622		94,597
Credito Bergamasco SpA	1,294		47,922
Cremonini SpA	9,400		26,455
Danieli & Company SpA	7,817		79,549
De Longhi SpA	23,047		83,879
Esprinet SpA	4,770		81,340
Gemina SpA *	37,070		128,395
Gewiss SpA	4,550		35,040
GranitiFiandre SpA	7,189		71,917
IMMSI SpA	35,724		91,400
Impregilo SpA *	70,148		259,115
Indesit Company SpA (a)	7,439		86,504
Industria Macchine Automatiche SpA	5,896		84,476
Interpump SpA	16,266		141,288
Mariella Burani SpA	3,142		76,529
Meliorbanca SpA	17,273		84,630
Mirato SpA	3,489		39,857
Navigazione Montanari SpA	17,762		81,799
Permasteelisa SpA	4,223		73,633
Piccolo Credito Valtellinese Scarl	13,365		200,550
Premafin Finanziaria SpA	50,691		152,389
Recordati SpA (a)	13,404		97,481
SAES Getters SpA	2,559		79,090
Societa Partecipazioni Finanziarie SpA *	121,974		120,927
Socotherm SpA (a)	2,703		41,390
Sogefi SpA	6,285		43,577
Sol SpA	10,699		62,959
Stefanel	8,571		39,965
Targetti Sankey SpA	4,115		34,664
Telecom Italia Media SpA (a)	87,213		42,396
Trevi Finanziaria SpA	5,462		43,810
Vianini Lavori SpA	2,862		34,928
Vittoria Assicurazioni SpA	5,949		81,125

			4,386,193
Japan - 26.22%
A&A Material Corp. * (a)	19,000		30,923
ABILIT Corp.	3,000		16,540
Achilles Corp.	29,000		56,342
Aderans Company, Ltd. (a)	6,100		158,016
Advan Company, Ltd.	2,200		27,670
Advanex, Inc.	12,000		32,414
Aeon Fantasy Company, Ltd. *	1,400		56,069
Ahresty Corp. *	1,800		51,536
Aica Kogyo Company, Ltd. *	6,000		80,678

The accompanying notes are an integral part of the financial statements. 264

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Aichi Corp. (a)	10,600	$	100,079
Aichi Machine Industry Company, Ltd. *	12,000		33,948
Aichi Tokei Denki Company, Ltd.	10,000		30,847
Aigan Company, Ltd.	4,600		35,748
Aiphone Company, Ltd.	2,800		47,718
Airport Facilities Company, Ltd.	7,000		46,048
Aisan Industry Company, Ltd.	9,300		87,885
Akebono Brake Industry Company, Ltd. (a)	17,000		142,976
Akindo Sushiro Company, Ltd.	1,000		28,290
Akita Bank, Ltd. (a)	27,000		143,794
Aloka Company, Ltd. (a)	5,000		48,997
Alpha Corp.	1,000		34,681
Alpha Systems, Inc. * (a)	1,700		47,369
Alpine Electronics, Inc.	7,400		102,656
Alps Logistics Company, Ltd. *	2,000		37,493
Amano Corp. (a)	10,000		139,236
Amuse, Inc.	2,000		32,500
Ando Corp. *	14,000		31,852
Anest Iwata Corp.	6,000		30,369
Anritsu Corp. (a)	20,000		102,254
AOI Electronic Company, Ltd.	1,700		36,794
AOKI Holdings, Inc.	4,800		85,484
Aomori Bank, Ltd.	29,000		121,580
Arakawa Chemical Industries, Ltd.	3,500		37,817
Araya Industrial Company, Ltd.	14,000		33,999
Ariake Japan Company, Ltd. (a)	2,500		53,044
Arisawa Manufacturing Company, Ltd. * (a)	8,200		124,165
Aronkasei Company, Ltd.	7,000		37,041
Art Corp. (a)	2,000		59,989
As One Corp.	1,800		44,634
Asahi Diamond Industrial Company, Ltd. (a)	12,000		96,221
Asahi Kogyosha Company, Ltd.	8,000		34,971
Asahi Organic Chemicals
Industry Company, Ltd.	20,000		79,076
Asahi Pretec Corp. (a)	3,400		128,635
Asahi Soft Drinks Company, Ltd.	5,000		70,044
Asahi TEC Corp. *	15,000		32,849
Asanuma Corp.	17,000		33,463
Ashimori Industry Company, Ltd.	13,000		34,119
Asia Securities Printing Company, Ltd.	4,000		39,947
ASKA Pharmaceutical Company, Ltd.	5,000		43,756
Asunaro Aoki Construction Company, Ltd. *	11,000		78,454
Atsugi Company, Ltd. * (a)	27,000		38,652
Aucnet, Inc.	2,700		40,032
Avex Group Holdings, Inc. (a)	3,600		79,144
Azel Corp. *	17,000		34,766
Bando Chemical Industries, Ltd.	10,000		44,310
Bank of Ikeda, Ltd. *	3,300		165,344
Bank of Iwate, Ltd. *	3,200		175,331
Bank of Okinawa, Ltd.	3,200		140,974
Bank of Saga, Ltd.	33,000		121,759
Bank of the Ryukyus, Ltd. *	5,500		128,882

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Belluna Company, Ltd. * (a)	3,400	$	59,103
Best Denki Company, Ltd. * (a)	7,000		37,698
Bookoff Corp. * (a)	3,000		60,585
BSL Corp. * (a)	27,000		29,219
Bunka Shutter Company, Ltd.	7,000		41,813
C.I. Kasei Company, Ltd.	4,000		15,236
Cabin Company, Ltd. * (a)	6,000		30,676
CAC Corp. (a)	3,400		32,883
Calpis Company, Ltd.	9,000		68,638
Canon Electronics, Inc.	3,000		102,765
Canon Finetech, Inc.	6,000		102,509
Capcom Company, Ltd. (a)	5,300		76,911
Cawachi, Ltd. *	3,000		100,209
Cecile Company, Ltd. *	6,400		26,013
Central Finance Company, Ltd.	13,000		80,866
Central Glass Company, Ltd.	7,000		39,010
Century Leasing System, Inc.	7,600		100,638
CFS Corp.	6,000		33,744
Chiba Kogyo Bank, Ltd. *	5,800		97,709
Chino Corp.	11,000		36,931
Chiyoda Company, Ltd. (a)	3,800		90,665
Chori Company, Ltd. * (a)	19,000		35,133
Chudenko Corp. (a)	5,600		85,893
Chuetsu Pulp & Paper Company, Ltd.	15,000		33,999
Chugai Mining Company, Ltd. *	34,900		27,062
Chugai Ro Company, Ltd. *	9,000		29,679
Chugoku Marine Paints, Ltd. *	7,000		39,069
Chukyo Bank, Ltd.	49,000		148,225
Chuo Gyorui Company, Ltd.	12,000		36,811
Chuo Spring Company, Ltd.	9,000		45,784
CKD Corp. (a)	8,000		107,094
Clarion Company, Ltd. * (a)	52,000		81,530
Cleanup Corp.	5,000		40,475
CMK Corp. (a)	8,000		87,666
Coca-Cola Central Japan Company, Ltd.	15		120,020
Colowide Company, Ltd. *	5,500		41,852
Columbia Music Entertainment, Inc. *	29,000		28,665
Commuture Corp.	4,000		34,425
Computer Engineering & Consulting, Ltd.	2,900		36,350
Corona Corp.	4,900		87,474
Cosel Company, Ltd. (a)	5,600		99,254
Cosmo Securities Company, Ltd. (a)	22,000		41,055
Cross Plus, Inc.	2,000		47,378
Cybozu, Inc. *	45		42,563
D&M Holdings, Inc. * (a)	12,000		36,811
D.G. Roland Corp.	1,700		52,294
Dai Nippon Toryo Company, Ltd. *	22,000		34,306
Dai-Dan Company, Ltd.	6,000		34,102
Daido Kogyo Company, Ltd. *	11,000		31,026
Daido Metal Company, Ltd. (a)	5,000		28,759
Daidoh, Ltd. * (a)	4,000		62,784
Daihen Corp. *	20,000		101,061

The accompanying notes are an integral part of the financial statements. 265

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Daiho Corp. * (a)	14,000	$	33,522
Daiichi Jitsugyo Company, Ltd. *	7,000		34,357
Daiken Corp.	11,000		39,087
Daiki Company, Ltd.	3,600		39,358
Daiko Clearing Services Corp.	3,000		47,037
Daikoku Denki Company, Ltd. (a)	1,400		39,129
Daimei Telecom Engineering Corp. *	8,000		90,256
Dainichi Company, Ltd. *	3,800		32,478
Dainichiseika Color & Chemicals
Manufacturing Company, Ltd.	15,000		81,931
Daio Paper Corp. (a)	4,000		37,357
Daisan Bank, Ltd.	30,000		103,788
Daiseki Company, Ltd. (a)	2,700		61,429
Daiso Company, Ltd.	11,000		34,962
Daisyo Corp. (a)	2,800		40,441
Daito Bank, Ltd. *	19,000		31,247
Daiwa Industries, Ltd.	4,000		28,972
Daiwa Seiko, Inc. * (a)	18,000		40,799
Daiwabo Company, Ltd. * (a)	24,000		91,824
Daiwabo Information System Company, Ltd. (a)	3,000		41,566
DC Company, Ltd. *	8,000		36,130
Denki Kogyo Company, Ltd. (a)	8,000		72,191
Densei-Lambda KK	2,400		37,364
Denyo Company, Ltd.	3,000		36,684
Descente, Ltd. *	15,000		66,593
DIA Kensetsu Company, Ltd. * (a)	15,300		25,423
Dodwell BMS, Ltd. (a)	5,900		37,053
Doshisha Company, Ltd. (a)	1,800		32,363
Doutor Coffee Company, Ltd. * (a)	4,700		84,104
DTS Corp.	2,400		84,257
Dydo Drinco, Inc. (a)	3,300		125,133
Dynic Corp. *	13,000		34,894
Eagle Industry Company, Ltd.	5,000		45,034
Ehime Bank, Ltd.	24,000		102,049
Eighteenth Bank, Ltd.	30,000		155,170
Eiken Chemical Company, Ltd.	4,000		41,515
Eizo Nanao Corp.	2,900		80,312
Eneserve Corp. * (a)	4,800		30,226
Enplas Corp.	4,400		74,986
Epson Toyocom Corp. *	7,000		48,315
ESPEC Corp.	3,000		41,847
Fancl Corp. (a)	9,400		135,047
FDC Products, Inc. (a)	1,900		36,185
FDK Corp. * (a)	21,000		35,610
Foster Electric Company, Ltd. (a)	3,000		46,909
FP Corp.	2,900		94,644
France Bed Holdings Company, Ltd. (a)	42,000		90,188
Fudo Construction Company, Ltd. *	27,000		26,458
Fuji Company, Ltd. (a)	5,700		90,924
Fuji Corp., Ltd.	5,000		30,122
Fuji Kiko Company, Ltd. *	11,000		32,057
Fuji Kosan Company, Ltd. *	21,000		31,136

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Fuji Kyuko Company, Ltd. * (a)	10,000	$	52,831
Fuji Oil Company, Ltd.	12,400		114,221
Fuji Software ABC, Inc. (a)	5,400		159,209
Fujibo Holdings, Inc. * (a)	15,000		35,278
Fujicco Company, Ltd.	7,000		79,332
Fujikura Kasei Company, Ltd. *	3,000		26,791
Fujikura Rubber, Ltd.	5,000		37,791
Fujita Corp. *	5,400		24,388
Fujita Kanko, Inc.	7,000		52,610
Fujitec Company, Ltd. (a)	13,000		82,306
Fujitsu Access, Ltd. *	5,800		31,828
Fujitsu Business Systems, Ltd.	5,100		81,744
Fujitsu Devices, Inc.	3,000		39,623
Fujitsu Frontech, Ltd.	4,000		34,425
Fujitsu General, Ltd. *	14,000		35,312
Fujiya Company, Ltd. * (a)	19,000		35,133
Fukuda Corp.	8,000		31,903
Fukui Bank, Ltd.	41,000		142,542
Fukushima Bank, Ltd. *	25,000		37,493
Fukushima Industries Corp. *	3,000		35,278
Fukuyama Transporting Company, Ltd. (a)	32,000		107,435
Funai Consulting Company, Ltd.	5,000		32,338
Furukawa Company, Ltd. * (a)	50,000		121,426
Furusato Industries, Ltd.	2,000		32,074
Fuso Lexel, Inc. *	3,800		33,676
Fuso Pharmaceutical Industries, Ltd. (a)	13,000		41,762
Futaba Corp. (a)	5,900		155,852
Future System Consulting Corp. (a)	36		32,517
Fuyo General Lease Company, Ltd. (a)	3,000		91,262
Gakken Company, Ltd. *	13,000		31,571
Gecoss Corp.	5,500		32,338
Gigas K's Denki Corp. *	4,600		114,456
GMO internet, Inc. * (a)	6,000		64,931
Godo Steel, Ltd. (a)	11,000		62,895
Goldwin, Inc. *	12,000		33,642
Gourmet Kineya Company, Ltd.	5,000		40,646
GS Yuasa Corp. * (a)	72,000		168,719
Gulliver International Company, Ltd. (a)	1,130		91,956
Gun-Ei Chemical Industry Company, Ltd.	11,000		33,181
H.I.S. Company, Ltd.	3,700		96,792
Hakuto Company, Ltd.	2,700		38,652
Hakuyosha Company, Ltd.	5,000		16,190
Hanwa Company, Ltd.	49,000		186,639
Happinet Corp. (a)	1,600		32,789
Harashin Narus Holdings Company, Ltd.	3,000		39,138
Harima Chemicals, Inc.	5,000		37,152
Haruyama Trading Company, Ltd. *	2,700		37,249
Hayashikane Sangyo Company, Ltd. * (a)	28,000		37,936
Hazama Corp. *	18,700		34,737
Heiwado Company, Ltd.	9,000		165,268
Hibiya Engineering, Ltd. *	6,000		54,961
Higashi-Nippon Bank, Ltd. *	35,000		160,752

The accompanying notes are an integral part of the financial statements. 266

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Hitachi Information Systems, Ltd.	8,500	$	178,539
Hitachi Kokusai Electric, Inc. (a)	11,000		123,446
Hitachi Medical Corp. *	6,000		66,976
Hitachi Plant Technologies, Ltd. * (a)	25,000		143,155
Hitachi Software Engineering Company, Ltd. (a)	300		5,368
Hitachi Systems & Services, Ltd.	4,000		84,189
Hitachi Tool Engineering, Ltd.	4,000		69,362
Hitachi Transport System, Ltd. (a)	15,000		148,524
Hitachi Zosen Corp. *	87,500		97,674
Hochiki Corp. *	7,000		39,069
Hodogaya Chemical Company, Ltd. *	8,000		27,677
Hogy Medical Company, Ltd.	2,300		103,677
Hokkaido Gas Company, Ltd. *	14,000		36,505
Hokkan Holdings, Ltd.	11,000		40,493
Hokuetsu Bank, Ltd.	52,000		132,044
Hokuetsu Paper Mills, Ltd. (a)	24,000		148,268
Hokuriku Electric Industry Compnay, Ltd. (a)	12,000		40,595
Hokuto Corp.	2,800		46,549
Homac Corp. (a)	6,500		97,870
Horipro, Inc.	3,300		34,109
Hosiden Corp. (a)	12,100		126,305
Hosokawa Micron Corp.	4,000		30,369
Howa Machinery, Ltd. * (a)	20,000		30,335
IBJ Leasing Company, Ltd.	4,000		99,527
Ichikoh Industries, Ltd. (a)	12,000		37,834
Ichiyoshi Securities Company, Ltd.	5,000		74,688
ICOM, Inc.	3,000		84,359
IDEC Corp. (a)	3,500		56,546
Ihara Chemical Industry Company, Ltd.	10,000		33,232
Iino Kaiun Kaisha, Ltd. (a)	15,000		136,381
Ikegami Tsushinki Company, Ltd. *	13,000		23,374
Impact 21 Company, Ltd. (a)	1,600		29,381
Impress Holdings, Inc. * (a)	105		37,444
Inaba Denki Sangyo Company, Ltd. *	3,400		108,065
Inaba Seisakusho Company, Ltd.	2,400		37,568
Inabata & Company, Ltd.	11,000		84,641
Inageya Company, Ltd.	6,000		43,662
Ines Corp. *	6,600		45,779
Information Services International -
Dentsu, Ltd.	3,400		35,751
Intec, Inc. (a)	5,000		65,442
Invoice, Inc. * (a)	2,047		70,818
Iseki & Company, Ltd. * (a)	30,000		91,773
Ishihara Sangyo	58,000		85,995
Ishii Hyoki Company, Ltd. *	1,600		37,970
Itochu Enex Company, Ltd.	13,200		84,247
Itochu-Shokuhin Company, Ltd.	2,400		86,916
Itoham Foods, Inc. * (a)	29,000		112,437
Itoki Corp.	8,000		93,937
Iwasaki Electric Company, Ltd. *	11,000		27,839
Iwatani International Corp. * (a)	33,000		98,419
Iwatsu Electric Company, Ltd. *	17,000		31,000

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Izumiya Company, Ltd.	15,000	$	108,645
J. Bridge Corp. * (a)	7,000		23,263
Jalux, Inc. * (a)	2,200		40,961
Jamco Corp. *	3,000		31,571
Janome Sewing Machine Company, Ltd. *	19,000		32,218
Japan Airport Terminal Company, Ltd. (a)	12,000		147,041
Japan Cash Machine Company, Ltd. * (a)	2,600		41,098
Japan Digital Laboratory Company, Ltd.	2,900		43,047
Japan Foundation Engineering Company, Ltd. *	7,000		28,154
Japan General Estate Company, Ltd. * (a)	4,400		98,232
Japan Kenzai Company, Ltd. *	5,700		40,168
Japan Maintenance Company, Ltd. *	2,000		43,287
Japan Pulp & Paper Company, Ltd. (a)	23,000		91,526
Japan Radio Company, Ltd. * (a)	29,000		75,864
Japan Transcity Corp. (a)	9,000		43,944
Japan Vilene Company, Ltd.	12,000		73,418
Japan Wool Textile Company, Ltd.	13,000		112,880
JBCC Holdings, Inc.	4,200		37,328
Jeans Mate Corp. *	2,300		23,891
Jeol, Ltd. (a)	8,000		52,967
JFE Shoji Holdings, Inc. *	27,000		120,557
JMS Company, Ltd.	9,000		30,906
J-Oil Mills, Inc.	11,000		48,366
Joshin Denki Company, Ltd. * (a)	12,000		78,429
JSAT Corp.	32		77,986
JSP Corp.	3,800		34,064
Juki Corp.	23,000		125,627
Kabuki-Za Company, Ltd. *	1,000		42,009
Kadokawa Holdings, Inc. * (a)	3,300		128,226
Kaga Electronics Company, Ltd. (a)	6,800		137,906
Kagawa Bank, Ltd.	15,000		86,788
Kagome Company, Ltd. * (a)	11,800		167,214
Kahma Company, Ltd. (a)	3,100		73,964
Kaken Pharmaceutical Company, Ltd. (a)	17,000		124,434
Kameda Seika Company, Ltd.	4,000		42,163
Kamei Corp.	5,000		35,746
Kanaden Corp.	6,000		40,748
Kanagawa Chuo Kotsu Company, Ltd.	8,000		35,516
Kanamoto Company, Ltd.	5,000		45,333
Kanematsu Corp. *	62,000		101,436
Kanto Auto Works, Ltd.	9,800		116,159
Kanto Denka Kogyo Company, Ltd. * (a)	5,000		37,237
Kanto Natural Gas Development, Ltd.	5,000		38,260
Kanto Tsukuba Bank, Ltd. *	6,500		51,344
Kasai Kogyo Company, Ltd. *	8,000		32,380
Kasumi Company, Ltd.	6,000		35,431
Katakura Industries Company, Ltd. (a)	5,000		79,375
Kato Sangyo Company, Ltd.	7,000		101,402
Kato Works Company, Ltd.	10,000		42,521
Katokichi Company, Ltd. (a)	16,400		141,005
Kawada Industries, Inc. *	16,000		40,356

The accompanying notes are an integral part of the financial statements. 267

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Kawai Musical Instruments Manufacturing
Company, Ltd. *	16,000	$	30,540
Kawashima Selkon Textiles Company, Ltd. * (a)	17,000		29,696
Kayaba Industry Company, Ltd. (a)	29,000		128,005
Keihanshin Real Estate Company, Ltd.	6,000		41,259
Keihin Company, Ltd. * (a)	10,000		38,771
Keiiyu Company, Ltd.	4,400		33,781
Kentucky Fried Chicken Japan, Ltd.	3,000		56,112
Kenwood Corp. *	61,000		110,196
KEY Coffee, Inc.	3,100		44,642
Kibun Food Chemifa Company, Ltd. * (a)	4,000		44,821
Kinki Nippon Tourist Company, Ltd.	9,000		33,207
Kinki Sharyo Company, Ltd. * (a)	7,000		30,003
Kintetsu World Express, Inc.	3,800		93,256
Kioritz Corp.	10,000		30,250
Kishu Paper Company, Ltd. * (a)	17,000		28,103
Kisoji Company, Ltd.	2,200		41,524
Kissei Pharmaceutical Company, Ltd. * (a)	8,000		139,747
Kitagawa Iron Works Company, Ltd. *	12,000		29,756
Kita-Nippon Bank, Ltd.	1,400		71,816
Kitano Construction Corp. *	12,000		30,267
Kitz Corp.	15,000		126,667
Koa Corp.	8,000		117,319
Koatsu Gas Kogyo Company, Ltd.	7,000		42,768
Kohnan Shoji Company, Ltd. (a)	5,800		59,950
Koike Sanso Kogyo Company, Ltd. *	9,000		32,593
Kojima Company, Ltd. (a)	3,100		39,729
Kokusai Kogyo Company, Ltd. *	12,000		37,220
Komatsu Electronic Metals Company, Ltd.	4,800		170,968
Komatsu Seiren Company, Ltd.	9,000		36,658
Komatsu Wall Industry Company, Ltd. (a)	2,100		35,127
Konaka Company, Ltd. (a)	4,620		62,870
Kondotec, Inc. *	3,000		27,992
Konishi Company, Ltd. *	3,900		38,948
Kosaido Company, Ltd. *	3,800		28,721
Kosei Securities Company, Ltd. (a)	18,000		33,744
Krosaki Harima Corp.	15,000		56,751
KRS Corp. *	2,700		37,571
Kumagai Gumi Company, Ltd. * (a)	11,000		26,245
Kumiai Chemical Industry Company, Ltd.	15,000		34,894
Kurabo Industries, Ltd. * (a)	39,000		109,667
KUREHA Corp.	24,000		110,230
Kurimoto, Ltd. (a)	28,000		75,157
Kuroda Electric Company, Ltd. (a)	6,200		66,831
Kyoden Company, Ltd. *	7,000		29,407
Kyodo Printing Company, Ltd. *	14,000		54,518
Kyodo Shiryo Company, Ltd. *	24,000		37,834
Kyokuto Kaihatsu Kogyo Company, Ltd.	5,300		41,820
Kyokuyo Company, Ltd. *	16,000		38,720
Kyoritsu Maintenance Company, Ltd. (a)	1,700		51,425
Kyosan Electric Manufacturing Company, Ltd.	11,000		38,993
Kyoto Kimono Yuzen Company, Ltd.	24		35,380

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Kyowa Leather Cloth Company, Ltd.	5,200	$	34,340
Kyudenko Corp. *	7,000		38,055
Kyushu-Shinwa Holdings, Inc. * (a)	60,000		82,826
Laox Company, Ltd. * (a)	10,000		27,694
Life Corp. (a)	11,000		155,128
Livedoor Auto Company, Ltd. *	29,500		34,438
Macnica, Inc. *	3,400		94,738
Maeda Corp. * (a)	33,000		152,972
Maeda Road Construction Company, Ltd. *	14,000		102,118
Maezawa Industries, Inc.	5,100		31,550
Maezawa Kasei Industries Company, Ltd.	2,000		30,472
Maezawa Kyuso Industries Company, Ltd.	2,400		37,875
Mandom Corp. (a)	4,200		108,798
Mars Engineering Corp. (a)	1,600		39,674
Marubun Corp.	3,000		38,090
Marudai Food Company, Ltd. *	18,000		48,162
Maruetsu, Inc. * (a)	13,000		66,797
Maruha Group, Inc. * (a)	27,000		72,933
Marusan Securities Company, Ltd. *	8,000		120,455
Maruwa Company, Ltd.	1,400		33,701
Maruyama Manufacturing Company, Inc.	10,000		30,421
Maruzen Company, Ltd. *	23,000		39,393
Maruzen Company, Ltd.	4,000		23,757
Maruzen Showa Unyu Company, Ltd.	12,000		41,413
Maspro Denkoh Corp.	4,000		35,312
Matsuda Sangyo Company, Ltd. * (a)	2,000		38,175
Matsui Construction Company, Ltd.	8,000		34,630
Matsuya Company, Ltd. (a)	5,000		79,247
Matsuya Foods Company, Ltd.	4,300		63,022
Matsuzakaya Company, Ltd. (a)	10,000		71,578
Max Company, Ltd. *	7,000		97,525
Maxvalu Tokai Company, Ltd. *	3,000		55,217
MEC Company, Ltd.	2,400		31,187
Megachips Corp. * (a)	2,400		41,822
Meidensha Corp. * (a)	17,000		56,061
Meitec Corp. (a)	9,982		322,370
Meito Sangyo Company, Ltd. *	2,900		52,635
Meiwa Corp. * (a)	8,000		20,519
Meiwa Estate Company, Ltd. *	5,000		78,352
Mercian Corp.	31,000		73,964
Michinoku Bank, Ltd.	25,000		103,106
Mikuni Coca-Cola Bottling Company, Ltd.	9,000		96,246
Milbon Company, Ltd.	1,200		43,969
Minato Bank, Ltd. *	77,000		200,775
Ministop Company, Ltd. *	2,500		48,677
Mito Securities Company, Ltd.	8,000		46,832
Mitsuba Corp. * (a)	8,000		75,122
Mitsubishi Cable Industries, Ltd. * (a)	19,000		30,438
Mitsubishi Kakoki Kaisha, Ltd. * (a)	11,000		31,775
Mitsubishi Paper Mills, Ltd. * (a)	47,000		99,723
Mitsubishi Pencil Company, Ltd.	4,000		45,844
Mitsubishi Plastics, Inc.	31,000		92,455

The accompanying notes are an integral part of the financial statements. 268

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Mitsubishi Steel Manufacturing Company, Ltd. (a)	18,000	$	98,164
Mitsuboshi Belting Company, Ltd. (a)	14,000		87,325
Mitsui High-Tec, Inc.	7,100		80,526
Mitsui Home Company, Ltd.	12,000		94,380
Mitsui Knowledge Industry Company, Ltd. *	2,600		33,676
Mitsui Mining Company, Ltd. *	38,000		67,999
Mitsui Sugar Company, Ltd. * (a)	14,000		50,939
Mitsui-Soko Company, Ltd. (a)	12,000		70,146
Mitsumi Electric Company, Ltd. (a)	12,100		163,938
Mitsumura Printing Company, Ltd. *	7,000		32,747
Mitsuuroko Company, Ltd. *	13,000		93,494
Miura Company, Ltd.	4,700		115,543
Miyazaki, Bank Ltd.	23,000		121,120
Miyoshi Oil & Fat Company, Ltd.	14,000		28,750
Miyuki Holdings Company, Ltd.	8,000		31,562
Mizuno Corp.	18,000		129,453
Mochida Pharmaceutical Company, Ltd.	16,000		140,565
Modec, Inc. (a)	7,400		166,154
Morinaga & Company, Ltd. *	41,000		103,762
Morinaga Milk Industry Company, Ltd. *	36,000		130,987
Morita Corp.	6,000		39,368
Mory Industries, Inc.	11,000		35,243
MOS Food Services, Inc.	7,000		101,461
Moshi Moshi Hotline, Inc.	1,100		42,180
Mr Max Corp.	7,300		39,313
Myojo Foods Company, Ltd.	7,000		40,262
Nagano Bank, Ltd.	13,000		47,079
Nagatanien Company, Ltd.	5,000		38,345
Nakabayashi Company, Ltd.	14,000		34,357
Nakamuraya Company, Ltd.	6,000		31,954
Nakayama Steel Works, Ltd.	22,000		84,922
NEC Fielding, Ltd. (a)	8,400		107,295
NEC Mobiling, Ltd.	2,000		37,067
NEC Networks & System Integration Corp.	7,700		82,344
NEC Tokin Corp. * (a)	11,000		57,271
Net One Systems Company, Ltd. (a)	66		99,544
Netmarks, Inc. (a)	29		29,654
Neturen Company, Ltd.	8,000		88,620
Nice Corp. *	22,000		88,484
Nichia Steel Works, Ltd.	8,000		31,971
Nichias Corp.	15,000		111,201
Nichiban Company, Ltd.	10,000		41,328
Nichicon Corp.	12,000		153,279
Nichiha Corp. * (a)	4,200		61,986
Nichimo Corp.	29,000		29,654
Nichiro Corp. *	23,000		46,449
NIDEC COPAL CORP. (a)	2,700		31,750
Nidec Tosok Corp. (a)	2,800		32,019
Nifco, Inc. (a)	9,000		202,079
Nihon Dempa Kogyo Company, Ltd. (a)	3,500		132,419
Nihon Eslead Corp. (a)	2,000		61,182
Nihon Inter Electronics Corp.	5,000		37,877

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Nihon Kagaku Sangyo Company, Ltd.	5,000	$	36,471
Nihon Kohden Corp.	5,000		89,259
Nihon Nohyaku Company, Ltd. (a)	10,000		42,009
Nihon Parkerizing Company, Ltd.	7,000		119,594
Nihon Tokushu Toryo Company, Ltd.	6,000		39,368
Nihon Yamamura Glass Company, Ltd.	26,000		79,758
Nikkiso Company, Ltd. *	8,000		82,348
Nippei Toyama Corp. *	4,000		34,085
Nippo Corp. *	11,000		94,483
Nippon Beet Sugar
Manufacturing Company, Ltd. *	30,000		93,051
Nippon Carbide Industries Company, Inc. *	16,000		37,629
Nippon Carbon Company, Ltd. *	12,000		45,094
Nippon Ceramic Company, Ltd.	3,000		38,294
Nippon Chemical Industrial Company, Ltd. *	13,000		36,223
Nippon Chemi-Con Corp. (a)	22,000		157,471
Nippon Chemiphar Company, Ltd. *	5,000		27,949
Nippon Concrete Industries Company, Ltd.	15,000		41,413
Nippon Denko Company, Ltd.	14,000		44,736
Nippon Densetsu Kogyo Company, Ltd. *	12,000		75,463
Nippon Denwa Shisetsu Company, Ltd.	10,000		38,004
Nippon Felt Company, Ltd.	5,000		33,872
Nippon Fine Chemical Company, Ltd.	6,000		37,323
Nippon Flour Mills Company, Ltd. (a)	25,000		118,444
Nippon Gas Company, Ltd.	5,000		40,348
Nippon Jogesuido Sekkei Company, Ltd.	28		34,357
Nippon Kanzai Company, Ltd.	3,600		81,445
Nippon Kasei Chemical Company, Ltd. *	16,000		29,449
Nippon Kinzoku Company, Ltd.	16,000		33,403
Nippon Koei Company, Ltd. * (a)	11,000		31,400
Nippon Konpo Unyu Soko Company, Ltd.	10,000		136,083
Nippon Koshuha Steel Company, Ltd. * (a)	17,000		33,318
Nippon Metal Industry Company, Ltd.	17,000		38,098
Nippon Paint Company, Ltd. (a)	33,000		161,689
Nippon Parking Development Company, Ltd. (a)	293		51,856
Nippon Pillar Packing Company, Ltd. (a)	4,000		46,696
Nippon Piston Ring Company, Ltd. *	13,000		32,457
Nippon Restaurant System, Inc.	1,300		43,645
Nippon Road Company, Ltd. *	15,000		35,150
Nippon Seiki Company, Ltd.	6,000		131,396
Nippon Sharyo, Ltd.	20,000		50,104
Nippon Shinyaku Company, Ltd.	12,000		102,152
Nippon Signal Company, Ltd.	9,000		63,193
Nippon Soda Company, Ltd. *	26,000		131,601
Nippon Synthetic Chemical Industry
Company, Ltd.	20,000		72,089
Nippon System Development Company, Ltd. (a)	3,600		137,736
Nippon Thompson Company, Ltd.	12,000		114,422
Nippon Valqua Industries, Ltd. (a)	11,000		38,618
Nippon Yakin Kogyo Company, Ltd. (a)	8,500		36,287
Nippon Yusoki Company, Ltd. *	5,000		25,691
Nipro Corp.	9,000		172,553

The accompanying notes are an integral part of the financial statements. 269

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Nishimatsu Construction Company, Ltd. (a)	55,000	$	205,275
Nissan Shatai Company, Ltd.	17,000		95,028
Nissei Corp.	2,900		32,545
Nissei Plastic Industrial Company, Ltd.	4,000		33,778
Nissen Company, Ltd.	5,300		41,188
Nisshin Fire & Marine Ins. Company,Ltd. * (a)	21,000		97,346
Nisshin Fudosan Company *	3,000		40,390
Nisshin Oillio Group, Ltd. (a)	20,000		123,727
Nissin Corp.	11,000		41,617
Nissin Electric Company, Ltd. * (a)	19,000		69,942
Nissin Kogyo Company, Ltd.	6,900		145,226
Nissin Sugar Manufacturing Company, Ltd. *	12,000		31,699
Nitta Corp.	4,500		81,675
Nittan Valve Company, Ltd.	4,000		34,357
Nittetsu Mining Company, Ltd. (a)	12,000		96,834
Nitto Boseki Company, Ltd. *	44,000		153,347
Nitto Fuji Flour Milling Company, Ltd.	11,000		39,087
Nitto Kogyo Corp.	5,700		111,712
Nitto Kohki Company, Ltd. *	3,700		82,131
NIWS Company HQ, Ltd. * (a)	124		93,194
NOF Corp.	18,000		109,974
Nohmi Bosai, Ltd.	6,000		43,100
Nomura Company, Ltd.	6,000		28,324
Noritake Company, Ltd.	21,000		113,987
Noritsu Koki Company, Ltd.	3,800		74,799
Noritz Corp. (a)	7,400		135,256
Nosan Corp. * (a)	11,000		33,275
NS Solutions Corp. (a)	5,000		129,095
Odakyu Real Estate Company, Ltd.	11,000		43,679
Oenon Holdings, Inc.	9,000		35,661
Oiles Corp.	4,100		87,866
Oita Bank, Ltd.	21,000		161,945
Okabe Company, Ltd. *	9,000		36,735
Okamoto Industries, Inc. (a)	11,000		41,336
Okamoto Machine Tool Works, Ltd. *	7,000		32,747
Okamura Corp.	13,000		134,702
Okinawa Electric Power Company, Inc.	3,100		183,852
OKK Corp.	10,000		33,062
Okumura Corp. (a)	23,000		126,019
Okura Industrial Company, Ltd.	8,000		38,993
Okuwa Company, Ltd.	7,000		90,248
Olympic Corp. *	4,600		35,866
O-M, Ltd.	8,000		32,176
ONO Sokki Company, Ltd.	5,000		32,125
Onoken Company, Ltd.	3,000		39,674
Organo Corp. (a)	5,000		41,839
Oriental Yeast Company, Ltd.	6,000		36,863
Origin Electric Company, Ltd.	6,000		36,965
Osaka Steel Company, Ltd.	4,100		83,324
Osaki Electric Comany, Ltd.	4,000		34,732
Oyo Corp.	3,300		35,909
Pacific Industrial Company, Ltd.	7,000		42,112

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Pacific Metals Company, Ltd.	16,000	$	121,205
Paramount Bed Company, Ltd. (a)	5,000		93,307
Parco Company, Ltd. (a)	6,000		65,494
Paris Miki, Inc. (a)	5,300		99,808
Pasona, Inc. (a)	34		67,794
Patlite Corp.	3,700		35,942
PCA Corp. *	1,500		27,417
Penta-Ocean Construction Company, Ltd. * (a)	76,000		103,617
Pentax Corp. * (a)	13,000		68,459
PIA Corp * (a)	2,600		39,790
Pigeon Corp. * (a)	2,800		46,693
Piolax, Inc.	1,800		35,814
Press Kogyo Company, Ltd.	12,000		55,422
Prima Meat Packers, Ltd. * (a)	30,000		38,090
Q'Sai Company, Ltd.	3,200		45,046
Raito Kogyo Company, Ltd. *	9,900		33,406
Rasa Industries, Ltd. * (a)	10,000		39,794
RENOWN, Inc. * (a)	8,000		108,457
Resort Solution Company, Ltd. *	9,000		36,965
Resorttrust, Inc. *	5,500		154,659
Rhythm Watch Company, Ltd. *	20,000		36,471
Ricoh Elemex Corp. *	4,000		36,300
Ricoh Leasing Company, Ltd. *	4,800		129,658
Right On Company, Ltd.	3,900		126,284
Riken Corp. (a)	16,000		107,026
Riken Keiki Company, Ltd.	4,000		36,539
Riken Technos Corp.	8,000		32,653
Riken Vitamin Company, Ltd. *	2,000		50,530
Ringer Hut Company, Ltd. (a)	3,000		38,473
Rock Field Company, Ltd.	1,800		34,587
Roland Corp.	4,200		97,704
Royal Holdings Company, Ltd.	6,000		88,552
Ryobi, Ltd. *	22,000		163,470
Ryoden Trading Company, Ltd.	10,000		76,605
Ryosan Company, Ltd.	9,200		240,671
Ryoshoku, Ltd. (a)	4,000		101,231
Ryoyo Electro Corp.	6,600		88,015
S Foods, Inc.	4,500		39,457
S Science Company, Ltd.	102,000		34,766
Sagami Chain Company, Ltd.	4,000		37,357
Saibu Gas Company, Ltd.	54,000		132,061
Saizeriya Company, Ltd. (a)	6,400		97,673
Sakai Chemical Industry Company, Ltd. *	18,000		91,262
Sakata INX Corp.	8,000		42,265
Sakata Seed Corp. (a)	8,000		101,299
Sala Corp.	8,000		39,947
San-Ai Oil Company, Ltd.	10,000		41,839
Sanden Corp. (a)	24,000		101,436
Sanei-International Company, Ltd.	1,300		41,208
Sankei Building Company, Ltd.	11,000		84,922
Sanki Engineering Company, Ltd.	12,000		75,668
Sankyo Seiko Company, Ltd. *	7,000		35,013

The accompanying notes are an integral part of the financial statements. 270

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Sankyo-Tateyama Holdings, Inc. (a)	47,000	$	100,524
Sanoh Industrial Company, Ltd.	5,000		35,661
Sanrio Company, Ltd. * (a)	6,100		75,785
Sanshin Electronics Company, Ltd.	5,000		53,939
Sanyo Chemical Industries, Ltd.	16,000		112,888
Sanyo Denki Company, Ltd.	6,000		41,822
Sanyo Electric Credit Company, Ltd.	4,100		74,939
Sanyo Shokai, Ltd.	18,000		117,336
Sasebo Heavy Industries Company, Ltd. * (a)	18,000		49,082
Sato Corp. (a)	2,500		53,151
Sato Shoji Corp.	3,000		30,830
Satori Electric Company, Ltd.	2,400		35,564
Secom Techno Service Compnay, Ltd.	2,000		91,176
Seijo Corp.	1,300		31,349
Seika Corp. *	16,000		37,084
Seikagaku Corp.	7,600		82,764
Seiko Corp. (a)	10,000		80,184
Seiren Company, Ltd.	6,000		76,332
Sekisui Plastics Company, Ltd.	21,000		64,420
Senko Company, Ltd.	12,000		37,323
Senshu Electric Company, Ltd.	1,500		38,345
Senshukai Company, Ltd. (a)	8,000		85,757
Shaddy Company, Ltd. (a)	2,400		34,337
Shibaura Mechatronics Corp. (a)	4,000		22,291
Shibusawa Warehouse Company, Ltd.	10,000		43,032
Shibuya Kogyo Company, Ltd.	3,300		30,144
Shikibo, Ltd. *	20,000		30,335
Shikoku Bank, Ltd.	35,000		162,243
Shikoku Chemicals Corp.	6,000		40,850
Shikoku Coca-Cola Bottling Company, Ltd.	3,300		38,074
Shima Seiki Manufacturing, Ltd. (a)	6,700		161,570
Shimizu Bank, Ltd.	1,800		77,304
Shin Nippon Air Technologies Company, Ltd.	4,500		31,750
Shinagawa Refractories Company, Ltd.	8,000		29,585
Shindengen Electric Manufacturing
Company, Ltd.	15,000		75,157
Shin-Etsu Polymer Company, Ltd.	7,000		107,367
Shinkawa, Ltd. (a)	3,500		78,437
Shin-Keisei Electric Railway Company, Ltd.	10,000		37,408
Shinki Company, Ltd.	10,500		67,015
Shinko Electric Company, Ltd. * (a)	12,000		46,219
Shinko Plantech Company, Ltd. *	6,000		40,902
Shinko Shoji Company, Ltd.	3,000		37,706
Shin-Kobe Electric Machinery Company, Ltd.	7,000		36,445
Shinmaywa Industries, Ltd.	18,000		87,734
Shinsho Corp. *	13,000		35,226
Shinwa Kaiun Kaisha, Ltd.	14,000		41,038
Shiroki Corp. *	12,000		36,607
Shizuki Electric Company, Inc.	8,000		35,243
Shizuoka Gas Company, Ltd.	7,000		52,789
Sho-Bond Corp. (a)	4,200		38,187
Shobunsha Publications, Inc. *	2,400		29,408

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Shochiku Company, Ltd. * (a)	18,000	$	145,252
Shoko Company, Ltd. (a)	20,000		35,789
Showa Aircraft Industry Company, Ltd. *	3,000		42,282
Showa Highpolymer Company, Ltd.	11,000		41,430
Showa KDE Company, Ltd. *	10,000		24,711
Showa Sangyo Company, Ltd. *	33,000		85,765
Siix Corp.	2,000		31,528
Silver Seiko, Ltd. * (a)	70,000		39,964
Sinanen Company, Ltd. *	7,000		36,147
Sintokogio, Ltd.	9,000		105,526
SMK Corp.	14,000		95,676
Snow Brand Milk * (a)	41,000		135,205
SNT Corp. *	7,000		36,743
Sodick Company, Ltd.	4,000		35,278
Software Research Associates, Inc.	3,300		48,985
Sogo Medical Company, Ltd.	1,400		32,091
Sohgo Security Services Company, Ltd.	17,540		322,836
Sorun Corp. *	4,700		44,415
Space Company, Ltd.	4,200		34,071
SSP Company, Ltd. * (a)	16,000		91,483
ST Chemical Company, Ltd. (a)	6,000		82,928
St. Marc Holdings Company, Ltd. (a)	1,000		66,465
Star Micronics Company, Ltd. (a)	5,000		97,993
Starzen Company, Ltd. *	14,000		36,147
STB Leasing Company, Ltd.	2,000		27,336
Stella Chemifa Corp. (a)	1,000		39,368
Sugi Pharmacy Company, Ltd.	6,100		120,331
Sugimoto & Company, Ltd.	2,000		32,466
Sumida Corp. (a)	1,800		36,581
Suminoe Textile Company, Ltd.	11,000		40,118
Sumisho Computer Systems Corp.	5,400		101,922
Sumitomo Coal Mining Company, Ltd. *	20,000		30,165
Sumitomo Light Metal Industries, Ltd. (a)	47,000		103,328
Sumitomo Mitsui Company, Ltd. * (a)	9,000		34,357
Sumitomo Pipe & Tube Company, Ltd.	6,000		32,108
Sumitomo Precision Products Company, Ltd.	6,000		32,210
Sumitomo Seika Chemicals Company, Ltd.	8,000		49,627
Sun Wave Corp. *	11,000		33,931
Suntelephone Company, Ltd.	5,000		38,345
Suruga Corp.	1,300		94,713
SWCC Showa Holdings Company, Ltd. *	29,000		42,998
SxL Corp. * (a)	25,000		28,333
T. Hasegawa Company, Ltd. (a)	6,900		108,596
Tachibana Eletech Company, Ltd.	4,000		41,822
Tachihi Enterprise Company, Ltd. *	2,400		91,824
Tachikawa Corp.	4,600		30,143
Tachi-S Company, Ltd. *	4,300		31,841
Tadano, Ltd.	18,000		171,326
Taihei Dengyo Kaisha, Ltd. *	6,000		42,640
Taihei Kogyo Company, Ltd. *	12,000		32,823
Taiho Kogyo Company, Ltd.	3,400		39,460
Taikisha, Ltd.	3,000		34,766

The accompanying notes are an integral part of the financial statements. 271

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Taisei Rotec Corp. *	18,000	$	34,664
Takagi Securities Company, Ltd.	6,000		29,142
Takamatsu Corp. *	6,200		109,360
Takano Company, Ltd. *	2,000		36,982
Takaoka Electric Manufacturing Company, Ltd. *	18,000		36,198
Takara Printing Company, Ltd.	3,300		35,628
Takara Standard Company, Ltd. *	26,000		156,857
Takasago International Corp. (a)	16,000		79,894
Takasago Thermal Engineering Company, Ltd.	12,000		98,368
Takiron Company, Ltd.	10,000		39,453
Takuma Company, Ltd. (a)	14,000		75,992
Tamura Corp.	11,000		40,024
Tamura Taiko Holdings, Inc. * (a)	9,000		37,425
Tasaki Shinju Company, Ltd.	7,000		33,284
Tatsuta Electric Wire & Cable Company, Ltd.	12,000		34,562
Tayca Corp. *	11,000		31,682
TCM Corp.	12,000		40,288
Teac Corp. * (a)	26,000		31,460
Techno Ryowa, Ltd.	6,400		38,447
Tecmo, Ltd.	5,300		39,788
Teikoku Piston Ring Company, Ltd.	3,000		31,571
Teikoku Sen-I Company, Ltd.	8,000		41,174
Teikoku Tsushin Kogyo Company, Ltd.	7,000		36,684
Tekken Corp. * (a)	19,000		36,428
Tenma Corp.	5,000		90,111
TIS, Inc. (a)	6,500		137,084
TKC Corp.	2,900		57,454
Toa Corp/Tokyo	29,000		35,090
Toa Oil Company, Ltd.	22,000		36,181
TOA ROAD Corp. *	15,000		33,105
Toagosei Company, Ltd.	33,000		133,007
Tobishima Corp. * (a)	38,500		32,478
Tobu Store Company, Ltd. *	14,000		38,771
TOC Company, Ltd.	22,000		122,790
Tocalo Company, Ltd.	2,000		65,954
Tochigi Bank, Ltd.	19,000		129,198
Toda Kogyo Corp.	9,000		37,118
Toei Company, Ltd. (a)	16,000		122,568
Toenec Corp.	18,000		77,151
Tohcello Company, Ltd.	4,000		50,820
Toho Bank, Ltd.	48,000		219,641
Toho Company, Ltd.	6,000		41,924
Toho Real Estate Company, Ltd.	6,000		36,300
Toho Tenax Company, Ltd. * (a)	12,000		82,110
Toho Zinc Company, Ltd. *	17,000		132,112
Tohoku Bank, Ltd.	15,000		31,571
Tohoku Pioneer Corp.	2,700		42,218
Tokai Carbon Company, Ltd. (a)	34,000		233,224
Tokai Corp.	15,000		65,187
Tokai Pulp & Paper Company, Ltd.	11,000		36,181
Tokimec, Inc. *	13,000		29,355
Toko Electric Corp.	8,000		37,970

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Toko, Inc. *	16,000	$	51,945
Tokushima Bank, Ltd.	19,000		135,188
Tokushu Paper Manufacturing Company, Ltd.	7,000		35,848
Tokyo Dome Corp. * (a)	21,000		118,461
Tokyo Energy & Systems, Inc.	5,000		47,591
Tokyo Kikai Seisakusho, Ltd. (a)	10,000		30,506
Tokyo Leasing Company, Ltd. (a)	8,000		97,687
Tokyo Rakutenchi Company, Ltd.	9,000		42,717
Tokyo Rope Manufacturing Company, Ltd. *	34,000		73,589
Tokyo Style Company, Ltd.	8,000		94,346
Tokyo Tekko Company, Ltd. *	4,000		36,027
Tokyo Theatres Company, Inc. *	12,000		34,255
Tokyotokeiba Company, Ltd. (a)	33,000		107,136
Tokyu Community Corp.	1,300		36,002
Tokyu Livable, Inc. *	800		65,170
Tokyu Recreation Company, Ltd.	6,000		34,920
Tokyu Store Chain Company, Ltd.	8,000		53,581
Toli Corp. *	10,000		31,273
Tomato Bank, Ltd.	16,000		39,538
Tomen Electronics Corp.	2,200		41,711
Tomoe Corp. *	8,000		28,836
Tomoku Company, Ltd.	16,000		39,538
Tomy Company, Ltd. (a)	5,600		40,227
Tonami Transportation Company, Ltd.	11,000		30,182
Topre Corp.	9,000		81,982
Topy Industries, Ltd. (a)	29,000		114,908
Tori Holdings Company, Ltd. *	73,000		36,079
Torigoe Company, Ltd.	5,000		37,323
Torii Pharmaceutical Company, Ltd.	5,100		90,175
Torishima Pump Manufacturing Company, Ltd.	5,000		41,498
Toshiba Ceramics Company, Ltd.	22,000		102,356
Toshiba Plant Systems & Services Corp. *	16,000		84,666
Tosho Printing Company, Ltd.	9,000		34,587
Totetsu Kogyo Company, Ltd. *	6,000		36,760
Tottori Bank, Ltd. (a)	13,000		36,777
Touei Housing Corp.	4,800		94,074
Towa Bank, Ltd. *	24,000		57,467
Towa Corp. * (a)	4,900		33,361
Towa Pharmaceutical Company, Ltd. (a)	1,600		40,629
Towa Real Estate Development
Company, Ltd. * (a)	15,000		82,059
Toyo Construction Company, Ltd. * (a)	26,000		24,371
Toyo Corp. (a)	3,400		46,442
Toyo Electric Manufacturing Company, Ltd. (a)	6,000		36,454
Toyo Engineering Corp. * (a)	18,000		77,764
Toyo Kanetsu K K *	14,000		34,715
Toyo Kohan Company, Ltd.	22,000		89,983
Toyo Machinery & Metal Company, Ltd. (a)	4,000		34,357
Toyo Securities Company, Ltd.	9,000		48,392
Toyo Tire & Rubber Company, Ltd. (a)	30,000		132,930
Toyo Wharf & Warehouse Company, Ltd.	17,000		35,491
TRAD Company, Ltd.	11,000		44,617

The accompanying notes are an integral part of the financial statements. 272

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Trans Cosmos, Inc. * (a)	3,900	$	79,924
Trusco Nakayama Corp. (a)	3,700		74,722
Tsubaki Nakashima Company, Ltd.	6,500		102,301
Tsubakimoto Chain Company (a)	23,000		114,064
Tsubakimoto Kogyo Company, Ltd.	10,000		37,493
Tsudakoma Corp.	20,000		38,856
Tsugami Corp. (a)	14,000		83,269
Tsukishima Kikai Company, Ltd. (a)	7,000		87,683
Tsurumi Manufacturing Company, Ltd.	4,000		41,549
Tsutsumi Jewelry Company, Ltd.	3,000		95,607
Tsutsunaka Plastic Industry Company, Ltd.	10,000		39,283
TTK Company, Ltd.	6,000		39,368
Ube Material Industries, Ltd.	12,000		35,789
Uchida Yoko Company, Ltd.	8,000		46,014
UFJ Central Leasing Company, Ltd. *	1,000		46,440
Unicharm Petcare Corp.	2,000		83,337
Uniden Corp. (a)	12,000		120,762
Unimat Life Corp. *	2,800		37,220
Union Tool Company *	1,700		88,944
Unitika, Ltd. *	73,000		103,881
U-Shin, Ltd. (a)	5,000		35,448
Valor Company, Ltd.	6,000		112,735
Venture Link Company, Ltd. * (a)	9,800		29,228
VITAL-Net, Inc. *	6,500		38,439
Wakachiku Construction Company, Ltd. *	17,000		27,668
Warabeya Nichiyo Company, Ltd. *	2,500		34,532
Watabe Wedding Corp.	2,000		31,886
WATAMI Company, Ltd. (a)	3,000		43,177
Wood One Company, Ltd.	6,000		56,137
Yahagi Construction Company, Ltd.	8,000		33,880
Yaizu Suisankagaku Industry Company, Ltd.	2,700		33,337
Yamagata Bank, Ltd.	27,000		142,184
Yamaichi Electronics Company, Ltd.	3,100		34,763
Yamatane Corp. *	20,000		31,869
Yamazen Corp. *	6,000		35,380
Yaoko Company, Ltd.	1,900		45,333
Yasuda Warehouse Company, Ltd.	4,000		39,845
Yellow Hat, Ltd.	3,600		40,861
Yodogawa Steel Works, Ltd.	30,000		160,794
Yokohama Reito Company, Ltd.	10,000		82,911
Yokowo Company, Ltd.	2,800		34,405
Yomeishu Seizo Company, Ltd. * (a)	2,000		21,081
Yomiuri Land Company, Ltd. (a)	6,000		38,294
Yondenko Corp.	7,000		37,757
Yonekyu Corp. *	3,500		37,519
Yorozu Corp.	3,000		32,389
Yoshimoto Kogyo Company, Ltd. (a)	4,000		82,996
Yoshinoya D&C Company, Ltd. (a)	48		85,075
Yuasa Trading Company, Ltd. *	35,000		64,420
Yuken Kogyo Company, Ltd. *	14,000		37,459
Yukiguni Maitake Company, Ltd. *	8,500		35,708
Yuraku Real Estate Company, Ltd. *	13,000		88,731

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Yurtec Corp.	15,000	$	73,751
Yushiro Chemical Industry Company, Ltd. (a)	2,000		40,390
Zenrin Company, Ltd. (a)	5,000		118,018
ZERIA Pharmaceutical Company, Ltd.	5,000		46,653
Zuken, Inc.	3,800		36,914

			57,928,479
Luxembourg - 0.25%
Thiel Logistik AG *	145,482		549,018
Malaysia - 0.10%
Affin Holdings Berhad	118,000		53,855
DRB-Hicom Berhad	53,000		21,453
Island & Peninsular Berhad	54,600		19,431
KFC Holdings Malaysia Berhad	35,800		46,878
Malaysian Bulk Carriers Berhad	53,700		34,720
Mulpha International Berhad *	108,000		35,795

			212,132
Mexico - 0.46%
Consorcio ARA SA de CV	21,700		100,999
Controladora Comercial Mexicana SA de CV	47,700		89,592
Corp GEO SA de CV *	42,900		172,944
Embotelladoras Arca SA de CV	38,516		111,513
Empresas ICA Sociedad
Controladora SA de CV *	25,600		86,784
Gruma SA de CV	17,000		51,321
Grupo Aeroportuario del Sureste SA de CV	27,200		94,999
Grupo Cementos de Chihuahua SA de CV *	5,000		17,967
Industrias CH SA *	29,700		90,669
Industrias Penoles SA de CV	7,300		61,533
Organizacion Soriana SA de CV	12,900		61,448
TV Azteca SA de CV *	113,500		74,873

			1,014,642
Netherlands - 2.99%
Aalberts Industries NV	16,192		1,333,957
Arcadis NV	2,012		96,802
Beter Bed Holdings NV	1,579		31,713
Brunel International NV	1,093		28,104
Eriks Group NV	490		26,565
Fornix Biosciences NV	1,231		34,172
Grolsch NV	1,634		62,270
Heijmans NV	3,315		163,098
ICT Automatisering NV	1,167		24,334
Imtech NV	15,998		862,209
Macintosh Retail Group NV (a)	3,032		90,490
OPG Groep NV	5,986		563,599
SBM Offshore NV	65,252		1,787,170
Smit Internationale NV	882		73,791
Stork NV	4,004		197,150
Telegraaf Media Groep NV (a)	3,526		82,094
Unit 4 Agresso NV *	1,972		38,471
Univar NV	1,440		59,556
USG People NV	840		57,704

The accompanying notes are an integral part of the financial statements. 273

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Netherlands (continued)
Vedior NV	54,074	$	998,875

			6,612,124
New Zealand - 0.31%
Air New Zealand, Ltd. (a)	56,772		42,727
Freightways, Ltd.	20,218		48,957
Infratil, Ltd. (a)	32,979		89,786
Mainfreight, Ltd.	12,437		50,139
New Zealand Oil & Gas, Ltd. *	63,937		36,822
Nuplex Industries, Ltd. (a)	14,959		62,460
PGG Wrightson, Ltd.	34,036		40,540
Port of Tauranga, Ltd.	12,311		39,076
Pumpkin Patch, Ltd.	30,500		79,843
Ryman Healthcare, Ltd.	24,524		141,559
Tower, Ltd. *	22,320		48,204

			680,113
Norway - 1.42%
Acta Holding ASA (a)	30,000		116,743
Aktiv Kapital ASA (a)	5,600		81,498
Altinex ASA *	180,000		33,314
DOF ASA	5,500		50,462
EDB Business Partner ASA	4,400		36,541
Ekornes ASA	3,800		76,341
Expert ASA	2,800		34,105
Farstad Shipping ASA	4,000		81,625
Ganger Rolf ASA *	2,300		68,946
Leroy Seafood Group ASA	4,400		76,911
Norse Energy Corp., ASA *	62,000		38,544
Ocean RIG ASA * (a)	28,500		177,629
Petrolia Drilling ASA *	90,000		46,555
Prosafe ASA (a)	23,433		1,562,422
Sinvest ASA * (a)	7,500		126,946
Solstad Offshore ASA	2,200		41,066
Sparebanken Midt-Norge	2,200		25,318
Tandberg ASA (a)	9,400		96,281
Tandberg Television ASA * (a)	17,000		234,632
Tomra Systems ASA	7,921		51,248
Veidekke ASA	2,100		70,924

			3,128,051
Philippines - 0.07%
Filinvest Land, Inc. *	1,631,000		43,643
First Philippine Holdings Corp.	44,800		37,021
Jollibee Foods Corp.	59,300		37,336
Megaworld Corp.	1,412,000		46,673

			164,673
Poland - 0.04%
Fabryka Kotlow Rafako SA *	4,029		41,022
Impexmetal SA *	893		46,040

			87,062
Portugal - 0.24%
Gescartao SGPS SA *	1,894		42,376

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Portugal (continued)
Impresa SGPS *	6,950	$	42,231
Jeronimo Martins, SGPS, SA	2,533		45,235
Mota Engil SGPS SA	15,218		87,020
Semapa-Sociedade de Investimento e Gestao	7,734		82,514
Sonae Industria SGPS SA New *	10,400		88,606
SONAECOM - SGPS SA *	22,954		145,058

			533,040
Singapore - 0.66%
Allgreen Properties, Ltd.	50,000		46,399
Bukit Sembawang Estates, Ltd.	4,000		47,035
Cerebos Pacific, Ltd.	22,000		42,230
Chuan Hup Holdings, Ltd.	192,000		40,882
Creative Technology, Ltd. (a)	15,150		99,183
GES International, Ltd.	72,000		55,374
Hi-P International, Ltd. (a)	80,000		35,594
Hong Leong Asia, Ltd.	43,000		40,723
HTL International Holdings, Ltd.	57,000		43,113
Hyflux, Ltd.	31,000		42,166
Jaya Holdings, Ltd.	56,000		49,120
Jurong Technologies Industrial Corp., Ltd. (a)	64,000		45,967
K1 Ventures, Ltd. *	374,000		89,144
Keppel Telecommunications & Transportation
Company, Ltd.	47,000		48,395
Kim Eng Holdings, Ltd.	51,000		42,465
MediaRing, Ltd. *	145,000		33,179
Metro Holdings, Ltd.	81,000		39,643
MFS Technology, Ltd. *	56,000		30,967
Midas Holdings, Ltd.	77,000		44,292
MMI Holding, Ltd.	88,000		50,060
Petra Foods, Ltd.	46,000		41,226
Robinson & Company, Ltd. *	13,000		52,469
SBS Transit, Ltd.	29,500		40,313
Singapore Food Industries, Ltd.	68,000		39,331
Sinomem Technology, Ltd.	76,000		40,577
Straits Trading Company, Ltd.	39,000		70,648
United Test and Assembly Center, Ltd. * (a)	215,000		102,492
UOB-Kay Hian Holdings, Ltd.	75,000		58,635
WBL Corp., Ltd.	17,000		49,056

			1,460,678
South Africa - 2.28%
Adcorp Holdings, Ltd.	10,327		33,704
Aeci, Ltd.	19,328		150,318
Afgri, Ltd. *	105,073		87,701
African Oxygen, Ltd.	29,934		129,289
African Rainbow Minerals, Ltd. *	20,963		174,825
Allied Technologies, Ltd.	11,687		89,919
Amalgamated Appliance Holding Company	46,719		35,231
Argent Industrial, Ltd.	20,036		39,374
Astral Foods, Ltd.	8,106		96,252
Aveng, Ltd.	68,362		253,492
Bytes Technology Group, Ltd.	35,480		64,303

The accompanying notes are an integral part of the financial statements. 274

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Africa (continued)
Capitec Bank Holdings, Ltd.	8,290	$	35,115
Ceramic Industries, Ltd.	1,781		33,144
City Lodge Hotels, Ltd.	5,411		39,836
DataTec, Ltd. *	22,638		89,445
Dimension Data Holdings PLC *	260,585		180,587
Distell Group, Ltd.	3,600		20,499
Distribution & Warehousing Network, Ltd. *	29,007		38,472
Ellerine Holdings, Ltd.	26,382		245,482
Famous Brands, Ltd.	21,997		37,117
Grindrod, Ltd.	23,622		42,221
Group Five, Ltd.	19,505		84,380
Highveld Steel & Vanadium Corp., Ltd.	3,483		29,749
Iliad Africa, Ltd.	18,612		31,819
Illovo Sugar, Ltd.	15,751		39,156
Johnnic Communications, Ltd.	29,319		264,667
Medi-Clinic Corp., Ltd.	45,472		132,554
Metorex, Ltd. *	54,859		89,140
Metropolitan Holdings, Ltd.	136,971		229,601
Mr. Price Group, Ltd. *	28,241		76,481
Murray & Roberts Holdings, Ltd.	64,770		262,210
Mustek, Ltd.	25,208		33,258
Mvelaphanda Group, Ltd.	40,873		47,966
Nampak, Ltd.	97,095		231,394
New Clicks Holdings, Ltd. *	39,503		56,782
Northam Platinum, Ltd.	43,977		225,977
Omnia Holdings, Ltd.	5,039		36,467
Peregrine Holdings, Ltd.	62,815		71,534
Primedia, Ltd. *	25,101		54,730
PSG Group, Ltd.	21,133		64,569
Rainbow Chicken, Ltd.	59,705		83,664
Santam, Ltd.	15,918		187,886
Sun International, Ltd.	23,458		309,494
Tongaat-Hulett Group, Ltd.	13,561		176,563
Trencor, Ltd.	19,947		72,026
Western Areas, Ltd. *	29,160		177,945
Wilson Bayly Holmes-Ovcon, Ltd.	5,031		40,804

			5,027,142
South Korea - 4.87%
Binggrae Company, Ltd.	990		38,206
Bukwang Pharmaceutical Company, Ltd.	2,450		45,618
Byucksan Engineering & Construction
Company, Ltd.	4,400		29,750
Cheil Communications, Inc.	590		118,755
Chong Kun Dang Pharm Corp.	1,240		45,983
Choongwae Pharma Corp.	990		41,707
CJ CGV Company, Ltd.	2,000		53,362
Crown Confectionery Company, Ltd.	310		32,408
Dacom Corp.	7,910		173,200
Dae Han Flour Mills Company, Ltd.	230		31,820
Daeduck Electronics Company, Ltd.	6,110		52,561
Daeduck GDS Company, Ltd.	3,600		32,017
Daehan City Gas Company, Ltd.	1,530		37,082

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Korea (continued)
Daekyo Company, Ltd.	1,000	$	75,311
Daerim Corp. *	1,180		23,321
Daesang Corp. *	3,090		42,589
Daesung Industrial Company, Ltd.	550		39,190
Daewoo Motor Sales	4,910		107,255
Daewoong Pharmaceutical Company, Ltd.	960		42,241
Daishin Securities Company, Ltd.	9,110		184,787
Daou Technology, Inc. *	5,570		34,474
DC Chemical Company, Ltd.	1,720		77,202
Dong Su Industrial Company, Ltd.	1,490		30,998
Dong Wha Pharmaceutical Industrial
Company, Ltd.	1,460		47,991
Dong-A Pharmaceutical Company, Ltd.	1,180		86,289
Dongbu Corp.	3,980		62,514
Dongbu Hannong Chemicals Company, Ltd.	2,060		38,571
Dongbu Securities Company, Ltd.	3,240		30,939
Dongbu Steel Company, Ltd.	3,980		33,534
DongbuElectronics Company, Ltd. *	17,000		41,733
Dongkuk Steel Mill Company, Ltd.	8,030		139,492
Dongwon F&B Company, Ltd.	640		34,551
Dongwon Systems Corp.	16,920		36,961
Doosan Corp. *	1,300		48,817
Doosan Industrial Development Company, Ltd. *	12,990		133,096
E1 Corp.	890		37,957
Firstec Company, Ltd. *	31,110		35,920
FnC Kolon Corp.	2,670		40,271
Fursys, Inc.	2,920		87,781
Gwangju Shinsegae Company, Ltd.	260		33,536
Halla Climate Control Company, Ltd.	14,530		162,477
Halla Engineering & Construction Corp.	1,480		33,715
Hana Securities Company, Ltd.	2,370		25,392
Handok Pharmaceuticals Company, Ltd.	2,770		39,763
Handsome Company, Ltd.	3,160		48,155
Hanil Cement Manufacturing Company, Ltd.	1,310		97,703
Hanjin Heavy Industries & Construction
Company, Ltd.	2,120		57,777
Hanjin Transportation Company, Ltd.	2,640		67,830
Hankuk Paper Manufacturing Company, Ltd.	1,070		29,996
Hanmi Pharm Company, Ltd.	1,450		170,437
Hansol CSN	8,980		26,248
Hansol LCD, Inc.	910		50,737
Hansol Paper Company	8,310		108,051
Hanwha Chem Corp.	11,170		113,286
Hanwha Securities Company	3,850		37,845
Honam Petrochemical Corp.	1,170		60,730
Hotel Shilla Company, Ltd.	5,200		77,620
Huchems Fine Chemical Corp.	4,460		36,187
Hwa Sung Industrial Company, Ltd.	2,440		31,726
Hyosung Corp. *	6,370		115,625
Hyundai Cement Company	960		26,762
Hyundai Corp. *	1,900		48,323
Hyundai Elevator Company, Ltd.	1,160		88,205

The accompanying notes are an integral part of the financial statements. 275

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Korea (continued)
Hyundai H&S Company, Ltd.	1,210	$	85,588
Hyundai Hysco	10,230		103,220
Hyundai Marine & Fire
Insurance Company, Ltd.	12,070		160,707
Hyundai Securities Company, Ltd.	8,890		116,055
Ilsung Pharmaceutical Company, Ltd.	650		36,714
Ilyang Pharmaceutical Company, Ltd.	2,380		43,943
Jeonbuk Bank	4,050		29,490
KISWIRE, Ltd.	1,480		34,870
Kolon Engineering &
Construction Company, Ltd.	2,190		34,512
Kolon Industries, Inc. *	3,240		41,454
Korea Development Corp.	1,290		30,192
Korea Development Financing Corp.	710		32,053
Korea Iron & Steel Company, Ltd.	2,550		89,125
Korea Kumho Petrochemical	4,530		118,274
Korea Polyol Company, Ltd.	580		22,021
Korea Zinc Company, Ltd.	2,060		177,854
Korean Petrochemical Ind. Company, Ltd.	1,280		34,352
Korean Reinsurance Company	10,350		122,734
KP Chemical Corp. *	18,980		84,796
KTBNetwork *	6,720		33,658
Kumho Electric Company, Ltd.	700		33,640
Kumho Industrial Company, Ltd.	5,250		101,303
Kwang Dong Pharmaceutical Company, Ltd.	10,360		32,437
Kyeryong Construction
Industrial Company, Ltd.	2,160		67,855
Kyobo Securities Company	3,590		34,356
LG Household & Health Care, Ltd.	2,200		169,116
LG International Corp.	9,430		211,387
LG Life Sciences, Ltd. *	1,060		50,169
LG Petrochemical Company, Ltd.	7,470		162,400
LIG Non-Life Insurance Company, Ltd.	8,940		130,192
Lotte Chilsung Beverage Company, Ltd.	160		213,034
Lotte Midopa Company, Ltd. *	9,850		180,330
Lotte Samkang Company, Ltd.	190		27,867
LS Cable, Ltd.	4,270		143,022
LS Industrial Systems Company, Ltd.	3,710		129,475
Meritz Securities Company, Ltd.	5,270		37,057
Moorim Paper Company, Ltd.	3,770		30,745
Namyang Dairy Products Company, Ltd.	80		58,168
NH Investment & Securities Company, Ltd.	2,440		34,264
Nong Shim Company, Ltd.	150		36,121
Nong Shim Holdings Company, Ltd.	490		36,138
Orion Corp.	620		136,724
Ottogi Corp.	350		34,259
Pantech & Curitel Communications, Inc. *	26,460		35,093
Pantech Company, Ltd. *	22,250		85,288
Poonglim Industrial Company, Ltd.	4,740		40,924
Poongsan Corp.	5,650		123,126
Pulmuone Company, Ltd.	1,020		31,406
Pusan City Gas Company, Ltd.	1,820		36,254

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
South Korea (continued)
S&T Corp.	1,460	$	35,841
S&T Dynamics Company, Ltd.	6,810		44,486
S1 Corp.	3,100		126,567
Saehan Industries, Inc. *	6,020		21,917
Sam Young Electronics Company, Ltd.	4,150		34,535
Sambu Construction Company, Ltd.	1,580		40,266
Samchully Company, Ltd.	770		82,899
Samjin Pharmaceutical Company, Ltd.	630		36,502
Samsung Fine Chemicals Company, Ltd.	4,250		106,101
Samwhan Corp.	1,500		33,625
Samyang Corp.	1,580		85,299
Samyang Genex Company, Ltd.	400		29,958
SeAH Holdings Corp.	560		39,028
Seoul Securities Company, Ltd.	26,110		38,024
Serim Paper Manufacturing Company, Ltd. *	2,700		46,622
Shinyoung Securities Company, Ltd.	1,270		41,283
Sindo Ricoh Company, Ltd.	1,960		102,756
SK Chemicals Company, Ltd.	3,110		121,152
SK Gas Company, Ltd.	1,000		40,568
SK Securities Company, Ltd.	68,860		82,373
SKC Company, Ltd.	5,200		111,697
Solomon Mutual Savings Bank	1,530		27,772
Ssangyong Cement Industrial Company, Ltd. *	12,410		150,389
Ssangyong Motor Company *	20,950		99,155
STX Corp.	2,730		38,053
STX Engine Company, Ltd.	3,000		56,639
Sudo Pharmaceutical Industry Company, Ltd. *	14,770		34,799
Sungshin Cement Company, Ltd.	2,140		27,046
Sungwon Corp. *	9,330		41,053
Tae Young Corp.	1,420		70,383
Taegu Department Store Company	2,330		36,113
Taekwang Industrial Company, Ltd.	70		51,480
Taihan Electric Wire Company, Ltd.	5,070		108,377
Tong Yang Investment Bank *	17,520		241,473
Tong Yang Major Corp. *	5,140		31,224
Union Steel	1,390		27,400
Woongjin Coway Company, Ltd.	3,040		69,569
Woongjin Thinkbig Company, Ltd.	5,790		106,904
YESCO Company, Ltd.	1,580		41,910
Youlchon Chemical Company, Ltd.	3,520		32,478
Young Poong Corp.	376		88,001
Youngone Corp.	8,130		36,153
Yuhan Corp.	1,360		211,494
Yungjin Pharmaceutical Company, Ltd. *	11,000		35,643

			10,753,149
Spain - 1.06%
Adolfo Dominguez	1,505		86,637
Amper SA	3,877		46,968
Baron de Ley *	714		37,513
Campofrio Alimentacion SA	2,352		44,079
Construcciones y Auxiliar de Ferrocarriles SA	288		38,316

The accompanying notes are an integral part of the financial statements. 276

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Spain (continued)
Duro Felguera SA (a)	7,697	$	42,733
Electrificaciones del Norte	5,639		183,949
FAES FARMA SA (a)	6,203		169,813
Grupo Empresarial Ence SA	4,932		217,354
La Seda de Barcelona SA * (a)	84,819		195,309
Mecalux SA *	3,078		109,725
Natra SA	4,190		44,971
Obrascon Huarte Lain SA	7,972		150,117
Sociedad Nacional Inds., Aplicaciones
Celulosa Espanola * (a)	8,538		45,546
Sol Melia SA (a)	21,413		383,222
SOS Cuetara SA	3,473		52,870
Tecnocom Telecomunicaciones y Energia SA *	3,269		43,826
Tubacex SA (a)	31,018		184,114
Tubos Reunidos SA	5,645		113,014
Viscofan SA * (a)	11,089		162,141

			2,352,217
Sweden - 2.06%
Acando AB *	14,000		23,962
Active Biotech AB *	4,200		36,522
AddTech AB	3,800		56,122
Angpanneforeningen AB, B Shares	2,000		32,023
Axfood AB	5,750		175,796
Axis Communications AB	9,900		83,355
Bergman & Beving AB	5,500		108,180
Billerud Aktibolag AB (a)	11,500		177,780
Bong Ljungdahl AB *	4,000		38,096
Capio AB * (a)	2,800		47,344
Cardo AB	5,000		148,380
Clas Ohlson AB	2,250		48,603
Concordia Maritime AB	6,500		41,270
D. Carnegie & Company AB (a)	52,789		939,941
Elekta AB, Series B (a)	6,000		106,006
Gunnebo AB	5,274		53,869
Haldex AB (a)	3,300		62,630
Hoganas AG, B Shares	7,400		189,982
IBS AB * (a)	17,000		58,193
Industrial & Financial Systems Corp. * (a)	56,000		71,885
JM AB	14,400		224,599
Lindex AB * (a)	10,000		129,747
Micronic Laser Systems AB *	7,700		82,368
Munters AB	1,650		64,566
Narkes Elektriska AB	600		10,766
New Wave Group AB, B Shares (a)	6,000		65,011
Nibe Industrier AB, B Shares	10,200		114,039
Nobia AB (a)	9,700		301,246
Nolato AB	3,400		37,309
Obsever AB *	18,200		79,634
OEM International AB	900		20,000
Peab AB	8,800		143,329
Pergo AB *	9,800		65,334
Proffice AB *	10,000		23,051

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Sweden (continued)
Protect Data AB	5,000	$	76,261
Q-Med AB	14,300		196,887
Rederi AB Transatlantic	9,000		51,305
Skanditek Industriforvaltning AB	9,500		51,140
SkiStar AB	5,100		83,769
Studsvik AB	1,200		33,044
Sweco AB *	2,600		72,851
Teleca AB *	14,200		63,308
WM Data AB, Series B	20,000		70,118

			4,559,621
Switzerland - 5.35%
Actelion, Ltd. *	1,985		265,160
AFG Arbonia-Forster Holdings	351		123,762
Agie Charmilles Holding AG	386		46,869
Allreal Holding AG	553		58,048
Also Holding AG	779		39,086
Ascom Holding AG *	5,820		63,215
Bank Coop AG	1,189		77,776
Bank Sarasin & Compagnie AG	41		114,987
Banque Cantonale Vaudoise	530		200,302
Barry Callebaut AG *	617		274,317
Belimo Holding AG	55		44,136
Berner Kantonalbank	1,072		179,000
Bucher Industries AG	1,062		92,883
Charles Voegele Holding AG *	553		43,726
Clariant AG *	5,086		61,838
Converium Holding AG	9,789		115,449
Conzzeta Holding AG	51		88,879
Daetwyler Holding AG	21		89,365
Emmi AG	663		85,448
EMS-Chemie Holding AG	993		111,478
Energiedienst Holding AG *	222		90,333
Flughafen Zuerich AG	524		125,723
Forbo Holding AG *	319		91,534
Georg Fischer AG *	439		206,209
Gurit Heberlein	475		293,386
Helvetia Patria Holding	609		181,658
Hiestand Holding AG	37		38,958
Jelmoli Holding AG	51		94,046
Kudelski SA (a)	1,673		48,887
Kuoni Reisen Holding AG, Series B *	3,158		1,651,058
LEM Holding SA	350		39,292
Lonza Group AG	4,035		262,633
Luzerner Kantonalbank *	435		92,469
Medisize Holding AG *	3,598		250,813
Mobilezone Holding AG	8,109		42,592
Phoenix Mecano AG	185		74,978
PubliGroupe SA *	373		119,123
Rieter Holdings AG	1,205		517,670
Saurer AG *	3,870		326,238
SEZ Holding AG *	2,074		49,509

The accompanying notes are an integral part of the financial statements. 277

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Switzerland (continued)
SIG Holding AG *	3,911	$	928,851
Sika AG *	225		281,410
St. Galler Kantonalbank	320		121,910
Sulzer AG	551		445,284
Swiss Prime Site AG *	1,559		77,843
Swissfirst AG	465		28,344
Swisslog Holding AG *	37,946		39,985
Swissquote Group Holding SA *	166		43,057
Tamedia AG	447		48,733
Tecan Group AG	2,047		107,850
Temenos Group AG *	3,887		45,370
Valiant Holding *	5,783		636,566
Valora Holding AG	858		192,819
Verwaltungs-und Privat-Bank AG	5,047		1,219,102
Von Roll Holding AG *	20,062		40,492
Vontobel Holdings AG	17,200		681,754
Zuger Kantonalbank AG	35		103,267

			11,815,470
Thailand - 0.12%
Cal-Comp Electronics Thailand PCL	304,200		30,926
Kiatnakin Finance PCL	49,600		37,621
Major Cineplex Group PCL	90,000		37,605
Thai Plastic & Chemical PLC	98,800		40,493
Thoresen Thai Agencies PLC	80,100		51,161
Ticon Industrial Connection PLC	88,400		39,289
Vinythai PCL	100,000		23,287

			260,382
Turkey - 0.04%
Eczacibasi Ilac Sanayi *	17,155		41,936
Mardin Cimento Sanayii ve Ticaret	7,907		44,003

			85,939
United Kingdom - 15.64%
A.G. Barr	2,441		52,261
Abacus Group PLC	13,889		42,206
Abbot Group PLC	30,745		173,992
Aberdeen Asset Management PLC	72,297		216,949
Acal PLC	5,883		39,840
AEA Technology PLC *	18,852		37,654
Aga Foodservice Group PLC	25,077		182,224
Aggreko PLC	98,123		526,366
Alfred McAlpine PLC	15,100		138,091
Alizyme PLC *	58,896		131,081
Amstrad PLC	11,470		41,401
Anite Group PLC *	41,216		57,626
Antisoma PLC *	137,552		37,940
Arena Leisure PLC	50,686		38,326
Arla Foods UK PLC	85,263		78,257
Arriva PLC	9,180		103,903
Ashtead Group PLC	42,119		105,559
Autonomy Corp. PLC *	34,951		258,961
Aveva Group PLC	7,896		56,175

International Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
Avis Europe PLC * (a)	65,846	$	81,416
Axis-Shield PLC *	6,029		36,126
Axon Group PLC	6,844		52,239
Babcock International Group	32,683		216,045
Bespak PLC	7,040		89,993
Blacks Leisure Group PLC	5,193		40,156
Bloomsbury Publishing PLC	15,244		93,663
Bodycote International	295,612		1,313,036
Bovis Homes Group PLC	21,300		339,338
BPP Holdings PLC	5,823		47,907
Brewin Dolphin Holdings PLC	36,061		104,953
Brit Insurance Holdings PLC	50,995		262,884
BSS Group PLC	6,945		45,083
Burberry Group PLC	127,914		1,164,308
Business Post Group PLC (a)	6,109		50,696
Capital & Regional PLC	10,569		202,456
Care UK PLC	6,169		61,022
Carillion PLC	19,053		115,073
Carpetright PLC	6,062		133,419
Charles Stanley Group PLC	5,789		37,001
Chemring Group PLC	7,531		211,020
Chloride Group	46,548		98,729
Chrysalis Group PLC	18,683		41,848
COLT Telecom Group SA * (a)	15,623		38,041
Communisis PLC	29,820		33,468
Computacenter PLC *	15,727		78,455
Cookson Group PLC	28,626		297,590
Costain Group PLC *	84,259		74,932
Countrywide PLC	25,160		195,032
Cranswick PLC	9,285		121,517
Crest Nicholson	18,269		184,187
Croda International	16,938		139,756
Dairy Crest Group PLC	18,208		193,616
Dana Petroleum PLC *	3,885		90,087
Datamonitor PLC	12,585		95,101
Davis Service Group PLC	30,431		280,320
De La Rue PLC	24,603		251,322
Delta PLC	17,178		42,153
Detica Group PLC	13,225		75,975
Development Securities PLC	9,003		94,535
Devro PLC	33,835		74,661
Dicom Group PLC	14,754		70,936
Diploma PLC	2,919		40,590
Domestic & General Group	4,202		78,294
Domino Printing Sciences	29,115		165,321
DS Smith PLC	179,314		535,527
DTZ Holdings PLC	19,551		228,166
DX Services PLC	58,376		460,285
Electrocomponents PLC	121,262		551,303
Elementis PLC	72,963		123,527
Emerald Energy PLC *	6,316		24,420
Ennstone PLC	39,739		37,041

The accompanying notes are an integral part of the financial statements. 278

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
United Kingdom (continued)
Enodis PLC	17,849 $	58,739
Enterprise PLC	12,951	109,877
Entertainment Rights PLC *	57,976	34,464
Erinaceous Group PLC	12,246	66,449
Euromoney Institutional Investor PLC	19,007	165,956
European Motor Holdings PLC	11,169	88,172
Evolution Group PLC	41,382	106,271
Expro International Group	8,613	113,787
F&C Asset Management PLC	110,863	425,996
Fenner PLC	16,871	66,914
Filtrona PLC	35,950	184,813
Findel PLC	15,671	168,726
First Choice Holidays PLC	37,488	151,359
FKI PLC	45,272	83,320
Forth Ports PLC	6,238	217,983
Fuller Smith & Turner	1,929	47,739
Galliford Try PLC	63,253	140,778
Game Group PLC	182,118	318,719
Go-Ahead Group PLC	4,821	169,200
Greene King PLC	11,999	192,644
Gyrus Group PLC *	30,914	221,258
Halfords Group PLC	12,850	81,154
Halma PLC	70,303	254,763
Headlam Group PLC	15,591	156,298
Helical Bar PLC	17,052	125,370
Helphire PLC	16,744	122,548
Henderson Group PLC	179,841	312,169
Henry Boot PLC	2,686	41,897
Highway Insurance Holdings PLC	55,651	74,633
Hill & Smith Holdings PLC	17,785	80,181
Hiscox PLC	54,162	246,241
HMV Group PLC	34,396	99,453
Holidaybreak PLC	5,473	76,313
Homeserve PLC	57,619	1,841,377
Homestyle Group PLC *	47,841	106,704
Hunting PLC	12,824	109,287
IG Group Holdings PLC	22,657	101,714
Intec Telecom Systems PLC *	40,144	28,255
Interserve PLC	6,095	33,565
Intertek Group PLC	24,314	319,597
iSOFT Group PLC	219,087	215,672
Isotron PLC	3,348	38,531
ITE Group PLC	44,002	100,653
J.D. Wetherspoon PLC	24,171	205,987
James Fisher & Sons PLC	11,043	106,083
JJB Sports PLC	34,953	117,852
JKX Oil & Gas PLC	56,800	326,305
John Laing PLC	9,595	49,281
John Wood Group PLC	186,846	814,819
Johnson Service Group PLC	10,919	80,954
Keller Group PLC	10,102	131,249
Kensington Group PLC	18,377	290,498

International Small Company Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
United Kingdom (continued)
Kier Group PLC	2,616 $	80,118
Kiln PLC	63,629	111,355
London Clubs International PLC *	29,221	73,651
Lookers PLC *	35,795	111,669
Luminar PLC	12,952	135,139
M.J. Gleeson Group PLC	11,305	82,633
Marshalls PLC	22,799	136,288
Marylebone Warwick Balfour Group PLC *	24,660	96,164
Matalan PLC	36,694	121,629
Mcbride PLC	26,220	82,297
McCarthy & Stone PLC	6,438	132,877
Melrose Resources PLC	17,369	123,904
Metal Bulletin PLC	7,120	55,056
Metalrax Group PLC	29,412	37,346
MFI Furniture Group PLC	112,844	181,386
MICE Group PLC	64,572	40,842
Michael Page International PLC	21,914	143,921
Minerva PLC	8,952	48,320
Misys PLC	32,278	151,814
Mitie Group	39,512	145,814
Morgan Crucible Company	40,098	208,997
Morgan Sindall PLC	13,744	283,930
Morse PLC	21,375	38,221
Mothercare PLC	12,706	82,963
Mouchel Parkman PLC	22,298	148,882
MyTravel Group PLC *	74,690	282,737
N Brown Group PLC	40,552	173,565
Northgate Information Solutions PLC *	34,647	48,112
Northgate PLC	8,733	162,635
NSB Retail Systems PLC *	64,125	35,680
Oxford Biomedica PLC *	90,000	47,081
Pace Micro Technology PLC *	44,430	47,330
Pendragon PLC	16,443	162,180
Premier Farnell PLC	52,563	187,727
Premier Foods PLC	16,880	84,851
Premier Oil PLC *	16,835	329,851
Protherics PLC *	31,033	47,226
Psion PLC	17,318	38,708
PZ Cussons PLC	3,268	88,835
QXL Ricardo PLC *	202	38,525
Rathbone Brothers	2,600	57,026
Redrow PLC	28,869	276,502
Regus Group PLC *	122,300	229,156
Renishaw PLC	9,048	136,316
Rensburg Sheppards PLC	4,945	63,965
Restaurant Group PLC	25,822	97,257
Retail Decisions PLC *	14,432	46,121
RM PLC	11,530	39,534
Robert Walters PLC	17,416	80,174
Robert Wiseman Dairies PLC	9,457	76,995
ROK PLC	4,096	49,711
Rotork PLC	11,244	155,711

The accompanying notes are an integral part of the financial statements. 279

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
United Kingdom (continued)
Royalblue Group PLC	3,727 $	61,999
RPC Group PLC	19,627	87,272
RPS Group PLC	47,731	206,335
Sanctuary Group PLC *	41,903	14,946
Savills PLC	18,273	181,620
SDL PLC *	10,149	39,577
Senior PLC	36,311	42,480
Severfield-Rowen PLC	1,973	55,922
Shanks Group PLC	30,880	110,434
Shore Capital Group PLC	82,607	88,784
SIG PLC	12,946	229,889
Skyepharma PLC *	127,235	63,534
Smiths News PLC *	27,259	246,304
Soco International PLC * (a)	9,700	239,505
Sondex PLC	6,737	40,977
Speedy Hire PLC	4,678	77,730
Spirax-Sarco Engineering PLC	28,330	499,029
Spirent Communications PLC *	74,246	64,615
SSL International PLC	22,790	125,938
St. Modwen Properties PLC	19,129	170,297
Stagecoach Group PLC	36,547	80,645
Stanley Leisure PLC	3,615	45,145
Surfcontrol PLC *	4,312	34,184
Taylor Nelson Sofres PLC	52,452	187,580
TDG PLC	11,424	46,505
Ted Baker PLC	4,286	39,787
Telent PLC * (a)	12,810	121,595
The Weir Group PLC	30,479	260,324
THUS Group PLC *	17,980	40,615
Topps Tiles PLC	25,010	115,249
Town Centre Securities PLC	11,969	128,639
TT electronics PLC	25,281	85,602
UK Coal PLC *	32,311	129,074
Ultra Electronics Holdings	4,987	96,810
Vanco PLC *	9,115	73,691
Venture Production PLC *	16,210	249,459
Vernalis PLC *	62,378	73,272
Victrex PLC	29,565	427,987
Viridian Group PLC	7,576	144,403
Vitec Group PLC	8,660	77,467
VT Group PLC	12,096	113,035
W.S. Atkins PLC	10,919	176,655
Wagon PLC	23,762	91,872
Wellington Underwriting PLC	31,932	56,339
Whatman PLC	50,013	292,547
Wincanton PLC	9,755	61,144
Wolfson Microelectronics PLC *	17,835	162,339
Wolverhampton & Dudley Brew PLC	14,018	360,788
Woolworths Group PLC	94,167	58,217
WSP Group PLC	6,248	54,167
Xaar PLC	8,223	20,257
Xansa PLC	21,636	32,000

International Small Company Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
Yule Catto & Company PLC		83,739	$	372,346

				34,551,601
United States - 0.91%
Akita Drilling, Ltd.		2,100		39,850
Bow Valley Energy, Ltd. *		12,900		71,689
Cangene Corp. *		4,700		35,888
GSI Group Inc. *		61,283		552,160
International Uranium Corp. *		8,500		47,928
Quest Capital Corp.		31,000		86,839
Savanna Energy Services Corp. *		5,500		121,018
Steiner Leisure, Ltd. *		25,841		994,362
Stratos Global Corp. *		6,300		19,583
Van Houtte, Inc.		2,200		36,261

				2,005,578

TOTAL COMMON STOCKS (Cost $223,386,132)			$	216,683,534


PREFERRED STOCKS - 0.40%
Brazil - 0.14%
Klabin SA, ADR		48,000		95,518
Sadia SA, ADR		36,000		96,695
Suzano Bahia Sul Papel e Celulose SA *		10,000		60,960
Weg SA		15,000		63,763

				316,936
Germany - 0.26%
Hugo Boss AG (a)		13,247		566,004

TOTAL PREFERRED STOCKS (Cost $940,641)			$	882,940


RIGHTS - 0.01%
United Kingdom - 0.01%
Premier Foods PLC		16,880		25,849

TOTAL RIGHTS (Cost $18,951)			$	25,849


SHORT TERM INVESTMENTS - 17.98%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	39,707,208	$	39,707,208

TOTAL SHORT TERM INVESTMENTS
(Cost $39,707,208)			$	39,707,208


REPURCHASE AGREEMENTS - 0.95%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$2,107,231 on 09/01/2006,
collateralized by $2,210,000
Federal National Mortgage
Association, 4.25% due
08/15/2010 (valued at $2,151,988,
including interest) (c)	$	2,107,000	$	2,107,000

TOTAL REPURCHASE AGREEMENTS
(Cost $2,107,000)			$	2,107,000

The accompanying notes are an integral part of the financial statements. 280

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Total Investments (International Small Company Fund)
(Cost $266,159,932) - 117.43%	$	259,406,531
Liabilities in Excess of Other Assets - (17.43)%		(38,495,541)

TOTAL NET ASSETS - 100.00%	$	220,910,990

The portfolio had the following five top industry concentrations as of August 31, 2006 (as a percentage of total net assets):

Building Materials & Construction	7.05%
Banking	4.66%
Paper	4.54%
Food & Beverages	4.23%
Business Services	3.89%

International Stock Fund

	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 94.95%
Australia - 2.18%
Amcor, Ltd.	13,592	$	69,578
Australia and New Zealand Bank Group, Ltd.	9,602		199,616
BHP Billiton, Ltd.	18,361		388,011
Commonwealth Bank of Australia, Ltd.	3,796		132,404
Foster's Group, Ltd.	13,710		62,233
Investa Property Group, Ltd.	40,193		72,672
Mirvac Group, Ltd.	26,244		91,499
Qantas Airways, Ltd., ADR	21,055		55,256
Rio Tinto, Ltd.	3,603		200,520
Stockland Company, Ltd.	9,430		52,086
Telstra Corp., Ltd.	45,633		125,328
Woodside Petroleum, Ltd.	1,774		57,194
Woolworths, Ltd.	7,634		120,556
Zinifex, Ltd.	11,402		103,513

			1,730,466
Austria - 0.41%
Bohler Uddeholm AG	997		53,567
Oesterreichische Elektrizitaets AG, Class A	910		45,773
OMV AG	1,897		101,001
Voestalpine AG	3,352		126,841

			327,182
Belgium - 0.84%
Colruyt SA	207		35,139
Delhaize Group	1,004		76,356
Dexia	6,480		166,205
Fortis Group SA	7,068		274,688
UCB SA	1,983		116,082

			668,470
Bermuda - 0.09%
Frontline, Ltd.	513		20,937
Noble Group, Ltd.	3,361		2,307
Ship Finance International, Ltd. (a)	380		7,668
Yue Yuen Industrial Holdings, Ltd.	13,718		39,689

			70,601
Canada - 2.08%
Alcan Aluminum, Ltd. USD	3,500		157,218
BCE, Inc.	2,988		74,447

International Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Canada (continued)
Canadian Imperial Bank of Commerce	2,870	$	208,329
Canadian Natural Resources, Ltd.	6,837		358,515
EnCana Corp. - CAD	1,897		99,422
Goldcorp, Inc.	3,500		96,620
Magna International, Inc.	800		57,341
National Bank of Canada	2,165		117,323
Nexen, Inc.	1,039		60,454
Petro-Canada	7,267		309,947
Royal Bank of Canada	2,574		113,924

			1,653,540
Denmark - 0.25%
A P Moller- Maersk A/S, Series A	8		65,027
Danske Bank AS	1,819		69,873
DSV AS	378		61,191

			196,091
Finland - 2.39%
Amer Sports Oyj	1,750		38,841
Elcoteq SE	1,050		19,006
Fortum Corp. Oyj	10,489		281,779
Kesko Oyj	2,767		116,951
Metso Oyj	4,017		149,229
Neste Oil OYJ	2,150		67,660
Nokia AB Oyj	22,035		460,878
OKO Bank - A	2,300		37,308
Oriola-KD OYJ *	1,300		3,127
Outokumpu Oyj	6,504		165,157
Rautaruukki Oyj	5,609		163,597
Sampo Oyj, A Shares	14,358		296,635
YIT Oyj	4,316		93,585

			1,893,753
France - 10.52%
Alstom RGPT *	1,637		154,128
Assurances Generales de France	490		61,430
AXA Group	4,290		159,151
BNP Paribas SA	16,170		1,715,860
Cap Gemini SA	2,839		155,295
Carrefour SA	3,325		204,849
Casino Guich-Perrachon SA	2,367		202,724
Compagnie De Saint Gobain SA	3,360		249,085
Compagnie Generale des Etablissements
Michelin, Class B	2,099		142,313
Credit Agricole S.A.	9,737		394,982
Lafarge SA	916		117,765
L'Oreal SA	1,290		134,824
LVMH Moet Hennessy SA	897		92,201
Peugeot SA	6,551		369,323
Pinault-Printemps-Redoute SA	458		63,160
Publicis Groupe SA	2,978		117,412
Renault Regie Nationale SA	6,094		708,634
Sanofi-Aventis	1,267		113,538
Schneider Electric SA	987		105,113

The accompanying notes are an integral part of the financial statements. 281

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
France (continued)
Societe Generale	2,709	$	436,651
Suez SA	2,631		112,347
Total SA	33,996		2,291,890
Vallourec SA	895		200,362
Zodiac SA	662		40,167

			8,343,204
Germany - 7.89%
Adidas-Salomon AG	866		41,211
Allianz AG	1,203		203,709
Altana AG	3,746		220,915
Bayerische Motoren Werke (BMW) AG	6,139		317,588
Commerzbank AG	10,614		370,678
DaimlerChrysler AG	6,111		322,081
Deutsche Bank AG	6,413		731,372
Deutsche Boerse AG	1,645		249,304
Deutsche Post AG	7,361		186,354
Deutsche Postbank AG	817		63,670
E.ON AG	4,458		565,499
Fresenius AG	559		95,952
Henkel KGaA	378		43,037
Hochtief AG	1,810		102,875
KarstadtQuelle AG * (a)	1,693		37,468
MAN AG	2,440		186,377
Merck & Company AG	576		57,098
Muenchener Rueckversicherungs-
Gesellschaft AG	4,906		737,932
Puma AG	334		115,675
Salzgitter AG	1,859		166,302
SAP AG	779		148,574
Solarworld AG	946		55,898
Suedzucker AG	4,929		122,641
Thyssen Krupp AG	16,327		555,158
Tui AG	7,782		151,716
Volkswagen AG (a)	5,192		414,120

			6,263,204
Hong Kong - 0.39%
CLP Holdings, Ltd.	15,904		100,615
Hong Kong Electric Holdings, Ltd.	17,854		85,402
Hong Kong Exchange & Clearing, Ltd.	12,500		85,188
MTR Corp.	14,000		35,824

			307,029
Ireland - 0.74%
CRH PLC	6,325		219,030
DCC PLC	2,105		52,779
Depfa Bank PLC	14,242		264,541
Kerry Group PLC	2,405		53,533

			589,883
Italy - 2.78%
Banca Monte dei Paschi Siena SpA	25,201		153,052
Banco Popolare Di Verona e Novara SpA	4,422		131,239
Benetton Group SpA	3,397		50,757

International Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Italy (continued)
Eni SpA	44,489	$	1,360,210
Fiat SpA - RNC *	2,766		36,799
Fiat SpA * (a)	8,205		117,348
Fondiaria-Sai SpA	1,442		46,209
Impregilo SpA *	12,118		44,762
Italcementi SpA	2,572		40,535
UniCredito Italiano SpA	27,821		221,370

			2,202,281
Japan - 24.87%
Aderans Company, Ltd.	865		22,407
AEON Company, Ltd.	5,289		133,177
Alps Electric Company	2,946		33,061
Amada Company, Ltd.	7,487		78,216
Asics Corp.	4,000		50,002
Canon, Inc.	7,250		360,786
Chubu Electric Power Company, Inc.	11,199		303,462
Cosmo Oil Company, Ltd.	10,000		44,054
Daido Steel Company, Ltd.	9,040		69,482
Daiei Inc. *	6,208		120,081
Daiichi Sankyo Company, Ltd.	4,831		133,377
Daikyo, Inc. *	16,888		86,919
Daiwa Securities Group, Inc. (a)	24,000		286,106
East Japan Railway Company	21		155,145
Eisai Company, Ltd.	3,880		184,817
Elpida Memory, Inc. *	1,000		44,225
Fuji Electric Holdings	11,000		55,865
Fuji Heavy Industries, Ltd.	23,116		133,746
Fujikura, Ltd.	9,000		106,370
Fujitsu, Ltd.	12,000		96,221
Haseko Corp. *	53,347		190,923
Hokkaido Electric Power Company, Inc.	3,599		88,936
Honda Motor Company, Ltd.	50,712		1,724,178
Ibiden Company, Ltd.	2,036		104,268
Isetan Company, Ltd.	3,403		57,415
Ishikawajima-Harima Heavy Industries
Company, Ltd.	32,769		95,497
Isuzu Motors, Ltd.	30,542		99,156
Itochu Corp.	44,047		369,701
Kansai Electric Power Company, Ltd. (a)	11,600		278,250
Kao Corp.	6,050		161,361
Kawasaki Heavy Industries, Ltd.	20,438		64,612
Kawasaki Kisen Kaisha, Ltd.	19,000		123,531
Keisei Electric Railway Company, Ltd.	4,458		27,047
Kenedix, Inc.	16		77,168
Kirin Brewery Company, Ltd.	5,000		69,490
KK DaVinci Advisors *	68		61,420
Kobe Steel Company, Ltd.	21,744		69,481
Komatsu, Ltd.	16,949		309,792
Konami Corp.	3,523		89,760
Kubota Corp.	18,000		148,166
Kyushu Electric Power	5,980		142,678
LeoPalace21 Corp.	2,590		91,810

The accompanying notes are an integral part of the financial statements. 282

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Marubeni Corp.	36,824	$	196,742
Mazda Motor Corp.	27,488		176,141
Mediceo Holdings Company, Ltd.	2,400		44,685
Mitsubishi Corp.	26,895		547,732
Mitsubishi Estate Company, Ltd.	10,404		224,295
Mitsubishi Heavy Industries, Ltd.	38,000		159,311
Mitsubishi Materials Corp.	23,130		100,715
Mitsubishi Rayon Company, Ltd.	14,920		102,980
Mitsubishi UFJ Financial Group, Inc.	71		968,003
Mitsui & Company, Ltd.	14,560		210,791
Mitsui Trust Holdings, Inc.	29,553		346,008
Mizuho Financial Group, Inc.	72		582,233
Mizuho Trust & Banking Company, Ltd. *	31,000		73,171
NGK Spark Plug Company, Ltd.	3,000		61,097
Nikko Cordial Corp.	7,000		88,876
Nikon Corp.	5,227		94,648
Nintendo Company, Ltd.	700		143,633
Nippon Sheet Glass Company, Ltd.	10,000		48,315
Nippon Telegraph & Telephone Corp.	87		439,615
Nippon Yusen Kabushiki Kaisha	10,000		61,949
Nissan Chemical Industries, Ltd.	4,992		64,785
Nissan Motor Company, Ltd.	77,500		880,959
Nomura Securities Company, Ltd.	13,400		259,196
NTT DoCoMo, Inc.	238		369,102
Orix Corp.	1,117		296,490
Osaka Gas Company, Ltd.	49,120		180,817
Resona Holdings, Inc. *	138		435,090
Ricoh Company, Ltd.	18,000		353,543
Seven & I Holdings Company, Ltd.	2,100		74,262
Shinko Electric Industries Company, Ltd.	2,767		80,401
Shinko Securities Company, Ltd.	14,000		56,666
Showa Shell Sekiyu K.K.	3,600		40,216
Sony Corp.	4,200		181,807
Sumitomo Chemical Company, Ltd.	12,000		94,483
Sumitomo Corp.	15,596		210,906
Sumitomo Light Metal Industries, Ltd.	15,000		32,977
Sumitomo Metal Industries, Ltd.	17,334		71,342
Sumitomo Metal Mining Company, Ltd.	14,000		197,435
Sumitomo Mitsui Financial Group, Inc.	7		78,735
Sumitomo Realty &
Development Company, Ltd.	8,000		235,866
Sumitomo Trust & Banking Company, Ltd.	12,448		132,695
TAIHEIYO CEMENT CORP.	16,097		60,627
Taisho Pharmaceuticals Company, Ltd.	2,790		54,561
Takashimaya Company, Ltd.	4,436		55,944
Takeda Pharmaceutical Company, Ltd.	22,089		1,462,499
The Japan Steel Works, Ltd.	6,000		42,589
The Tokyo Electric Power Company, Ltd.	3,539		101,024
Toho Zinc Company, Ltd. *	7,000		54,399
Tohoku Electric Power Company, Inc.	5,400		122,398
Tokyo Electron, Ltd.	1,900		124,988
Tokyo Gas Company, Ltd.	32,397		172,537

International Stock Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Japan (continued)
Tokyo Seimitsu Company, Ltd.		1,001	$	48,363
TonenGeneral Sekiyu K.K.		8,133		73,461
Toray Industries, Inc.		14,000		111,661
Toshiba Corp.		15,000		106,855
Toyo Tire & Rubber Company, Ltd.		3,812		16,891
Toyota Motor Corp.		19,300		1,047,599
Ube Industries, Ltd.		2,282		6,242
Yamada Denki Company, Ltd.		410		44,020
YASKAWA Electric Corp.		6,696		77,199

				19,724,729
Netherland Antilles - 0.23%
Mittal Steel Company NV		5,489		182,918
Netherlands - 8.77%
ABN AMRO Holdings NV		41,066		1,169,400
Aegon NV		32,696		583,059
Akzo Nobel NV		2,672		153,680
Buhrmann NV		4,622		62,793
Corio NV		173		11,630
CSM NV		2,183		66,576
DSM NV		2,381		94,057
Euronext NV		1,786		160,389
Hagemeyer N.V. *		12,736		64,355
Heineken Holding NV		1,950		78,129
Heineken NV		8,304		384,655
ING Groep NV		42,407		1,830,909
Koninklijke Ahold NV *		10,160		97,349
Oce-Van Der Grinten NV		2,593		44,947
Reed Elsevier NV		12,647		202,557
Royal Dutch Shell PLC, A Shares	GBP	9,009		311,900
Royal Dutch Shell PLC, A Shares	NLG	22,563		779,032
Royal Dutch Shell PLC, B Shares GBP		14,878		532,072
Stork NV *		840		41,360
TNT Post Group NV		4,127		154,952
Vedior NV		4,650		85,897
Wereldhave NV		431		45,211

				6,954,909
Norway - 0.44%
Norsk Hydro ASA		9,137		235,594
Statoil ASA		4,318		116,461

				352,055
Singapore - 1.00%
Ascendas Real Estate Investment Trust *		16,000		20,950
CapitaLand, Ltd.		29,203		88,353
Cosco Corp. Singapore, Ltd.		63,600		61,850
DBS Group Holdings, Ltd.		23,231		265,784
Keppel Corp., Ltd.		3,072		29,289
Keppel Land, Ltd.		16,538		46,672
K-REIT Asia *		2,908		2,735
Neptune Orient Lines, Ltd. (a)		27,488		33,720
SembCorp Industries, Ltd.		27,802		61,496
SembCorp Marine, Ltd.		8,267		18,181

The accompanying notes are an integral part of the financial statements. 283

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Singapore (continued)
Singapore Technologies Engineering, Ltd.	13,683	$	25,395
Singapore Telecommunications, Ltd., ADR *	54,700		86,571
StarHub Ltd.	37,290		57,121

			798,117
Spain - 1.19%
ACS Actividades SA	1,013		45,369
Fomento de Construcciones SA	981		76,426
Gas Natural SDG SA	2,753		92,024
Iberdrola SA	8,232		305,182
Repsol SA	14,721		422,587

			941,588
Sweden - 1.44%
Alfa Laval AB	1,400		46,281
Atlas Copco AB, Series A	6,000		154,454
Boliden AB	6,150		115,447
Electrolux AB, Series B	9,073		140,261
Nordea Bank AB	4,300		54,010
Sandvik AB	9,500		103,918
Skandinaviska Enskilda Banken AB, Series A	5,000		129,401
Svenska Cellulosa AB, Series B	2,494		106,887
Svenska Handelsbanken AB, Series A	2,600		67,827
Tele2 AB, Series B	10,120		100,224
Teliasonera AB	19,500		120,581

			1,139,291
Switzerland - 4.94%
ABB, Ltd.	36,294		480,998
Compagnie Financiere
Richemont AG, Series A	2,735		129,911
Credit Suisse Group AG	2,682		149,241
Nestle SA	1,163		398,995
Novartis AG	2,683		152,777
Roche Holdings AG NPV	3,797		698,338
Serono AG, Series B	101		70,242
Swiss Life Holding *	209		50,441
Swiss Re	2,957		225,065
UBS AG *	12,175		687,354
Unaxis Holding AG *	146		42,959
Zurich Financial Services AG	3,655		831,018

			3,917,339
United Kingdom - 21.51%
Alliance & Leicester PLC	6,632		129,437
Anglo American PLC	22,505		972,647
Arriva PLC	4,900		55,460
AstraZeneca Group PLC	27,578		1,785,748
Aviva PLC	16,489		231,483
BAE Systems PLC	13,849		97,605
Barclays PLC	10,871		135,967
Barratt Developments PLC	11,219		212,026
BBA Group PLC	13,245		67,145
Berkeley Group Holdings PLC *	1,545		37,678
BG Group PLC	34,684		452,937

International Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
BHP Billiton PLC	6,604	$	125,750
Boots Group PLC	15,067		220,978
British American Tobacco Australasia, Ltd.	7,674		210,209
BT Group PLC	150,090		703,779
Cable & Wireless PLC	48,672		113,650
Cadbury Schweppes PLC	20,967		222,954
Centrica PLC	68,555		384,706
Cobham PLC	30,847		100,781
Compass Group PLC	26,837		130,307
CSR PLC *	3,264		72,769
Dixons Group PLC	54,293		211,722
EMI Group PLC	15,430		78,589
George Wimpey PLC	26,259		250,256
GlaxoSmithKline PLC	78,680		2,227,076
GUS PLC	12,691		235,500
Hanson PLC	9,587		120,728
HBOS PLC	27,761		529,668
IMI PLC	7,442		71,597
Imperial Chemical Industries PLC	19,542		138,379
Imperial Tobacco Group PLC	15,687		540,115
J Sainsbury PLC	26,035		176,557
Johnson Matthey PLC	2,317		58,223
Kingfisher PLC	35,206		158,051
Ladbrokes PLC	9,350		67,988
Lloyds TSB Group PLC	22,850		226,677
Man Group PLC	23,109		185,617
Marks & Spencer Group PLC	22,894		258,035
Next Group PLC	7,043		223,337
Northern Rock	2,831		60,046
Rank Group PLC	10,497		42,632
Rio Tinto PLC	26,560		1,342,417
Rolls-Royce Group PLC *	5,984		49,659
Royal & Sun Alliance PLC	80,565		212,258
Royal Bank of Scotland Group PLC	35,272		1,195,654
Scottish & Newcastle PLC	9,048		94,750
Scottish Power PLC *	15,926		187,982
Standard Chartered PLC	2,845		71,167
Tate & Lyle PLC	8,813		122,800
Taylor Woodrow PLC	36,076		235,386
Tomkins PLC	24,410		132,105
United Utilities PLC	10,288		134,350
Vodafone Group PLC *	316,370		684,565
Wolseley PLC	2,259		49,203
Xstrata PLC	4,971		222,975

			17,060,080

TOTAL COMMON STOCKS (Cost $61,852,191)		$	75,316,730


PREFERRED STOCKS - 0.38%
Germany - 0.21%
Bayerische Motoren Werke (BMW) AG	728		36,963
Henkel KGaA-Vorzug, Non-Voting	597		76,135

The accompanying notes are an integral part of the financial statements. 284

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Stock Fund (continued)
		Shares or
		Principal
		Amount		Value


PREFERRED STOCKS (continued)
Germany (continued)
Volkswagen AG, Non-Voting		939	$	53,262

				166,360

Italy - 0.17%
IFI-Istituto Finanziario Industriale SPA *		1,715		41,026
Unipol SpA		31,645		95,436

				136,462


TOTAL PREFERRED STOCKS (Cost $209,845)			$	302,822


SHORT TERM INVESTMENTS - 1.30%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	1,028,026	$	1,028,026

TOTAL SHORT TERM INVESTMENTS
(Cost $1,028,026)			$	1,028,026


REPURCHASE AGREEMENTS - 0.50%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$393,043 on 9/1/2006,
collateralized by $420,000 Federal
Home Loan Mortgage Corp.,
4.125% due 02/24/2011 (valued at
$403,200, including interest) (c)	$	393,000	$	393,000

TOTAL REPURCHASE AGREEMENTS
(Cost $393,000)			$	393,000

Total Investments (International Stock Fund)
(Cost $63,483,062) - 97.13%			$	77,040,578
Other Assets in Excess of Liabilities - 2.87%				2,279,263

TOTAL NET ASSETS - 100.00%			$	79,319,841

The portfolio had the following five top industry concentrations as of August 31, 2006 (as a percentage of total net assets):

Banking	13.05%
Automobiles	8.12%
International Oil	7.57%
Insurance	6.89%
Pharmaceuticals	6.07%

International Value Fund
	Shares or
	Principal
	Amount	Value


COMMON STOCKS - 96.18%
Australia - 2.17%
National Australia Bank, Ltd. (a)	448,016 $	12,413,862
Qantas Airways, Ltd., ADR	3,299,924	8,660,240

		21,074,102
Belgium - 1.92%
Agfa Gevaert NV (a)	419,030	9,814,968

International Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Belgium (continued)
Belgacom SA	250,420	$	8,832,044

			18,647,012
Canada - 1.42%
Domtar, Inc.	1,139,444		7,258,917
Quebecor World, Inc.	583,900		6,500,382

			13,759,299
Cayman Islands - 1.30%
ACE, Ltd.	162,056		8,728,336
XL Capital, Ltd., Class A (a)	58,833		3,861,798

			12,590,134
China - 0.89%
China Telecom Corp., Ltd.	25,805,589		8,660,540
Denmark - 1.75%
Vestas Wind Systems AS * (a)	607,927		16,992,849
Finland - 2.60%
Stora Enso Oyj, R Shares - EUR (a)	720,110		10,925,441
UPM-Kymmene Oyj	605,431		14,328,206

			25,253,647
France - 7.86%
Arkema * (a)	4,627		180,118
AXA Group (a)	394,136		14,621,756
France Telecom SA (a)	952,161		20,183,122
Sanofi-Aventis (a)	152,966		13,707,507
Thomson SA * (a)	835,850		13,355,072
Total SA (a)	210,352		14,181,191

			76,228,766
Germany - 5.43%
Bayerische Motoren Werke (BMW) AG	191,764		9,920,503
Deutsche Post AG	419,401		10,617,706
E.ON AG	35,799		4,541,119
Muenchener Rueckversicherungs-
Gesellschaft AG	101,256		15,230,342
Siemens AG	146,169		12,374,780

			52,684,450
Hong Kong - 1.65%
Hutchison Whampoa, Ltd.	1,765,620		16,039,842
Israel - 1.52%
Check Point Software Technologies, Ltd., ADR *	794,420		14,768,268
Italy - 3.33%
Eni SpA	479,819		14,670,023
Mediaset SpA (a)	751,433		8,670,662
UniCredito Italiano SpA (a)	1,129,147		8,984,549

			32,325,234
Japan - 5.25%
KDDI Corp.	1,803		11,906,821
Konica Minolta Holdings, Inc.	1,108,462		14,498,651
Sony Corp.	313,714		13,579,883
Takeda Pharmaceutical Company, Ltd. (a)	165,186		10,936,860

			50,922,215

The accompanying notes are an integral part of the financial statements. 285

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

International Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Mexico - 0.77%
Telefonos de Mexico SA de CV, Class L, ADR	310,165	$	7,487,383
Netherlands - 6.86%
ING Groep NV	457,832		19,766,754
Koninklijke (Royal) Philips Electronics NV	372,296		12,678,033
Reed Elsevier NV (a)	1,342,355		21,499,441
Royal Dutch Shell PLC, B Shares GBP	352,313		12,599,529

			66,543,757
Norway - 3.21%
Norske Skogindustrier ASA (a)	828,524		12,614,755
Telenor ASA	1,462,611		18,509,377

			31,124,132
Portugal - 0.47%
Portugal Telecom, SGPS, SA	361,056		4,531,052
Singapore - 2.22%
Flextronics International, Ltd. *	670,540		7,912,372
Venture Corp., Ltd.	1,842,840		13,587,329

			21,499,701
South Korea - 4.13%
Kookmin Bank, ADR	94,451		7,610,862
KT Corp., Sponsored ADR	181,994		4,022,067
Samsung Electronics Company, Ltd., GDR	64		21,760
Samsung Electronics Company, Ltd.,
GDR-London	57,800		19,652,000
SK Telecom Company, Ltd., ADR	399,323		8,745,174

			40,051,863
Spain - 4.75%
Banco Santander Central Hispano SA (a)	315,890		4,893,679
Gamesa Corporation Tecno SA	573,283		12,063,974
Iberdrola SA	140,164		5,196,253
Repsol SA (a)	542,822		15,582,450
Telefonica SA - EUR	484,300		8,301,847

			46,038,203
Sweden - 0.84%
Securitas AB, B Shares	463,848		8,163,069
Switzerland - 3.25%
Nestle SA (a)	36,727		12,600,067
Swiss Re	177,723		13,526,943
UBS AG	94,648		5,343,466

			31,470,476
Taiwan - 5.29%
Chunghwa Telecom Company, Ltd., ADR (a)	487,947		8,446,355
Compal Electronics, Inc., GDR	1,842,304		8,198,254
Compal Electronics, Inc.	6,314,240		5,527,527
Lite-On Technology Corp.	842,580		10,455,491
Mega Financial Holding Company, Ltd.	28,130,000		18,682,650

			51,310,277
United Kingdom - 27.30%
Amvescap PLC	382,002		3,938,517
Aviva PLC	481,740		6,762,961

International Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
United Kingdom (continued)
BAE Systems PLC		610,443	$	4,302,304
BBA Group PLC		1,374,220		6,966,607
Boots Group PLC		907,312		13,306,960
BP PLC		1,186,062		13,469,440
British Sky Broadcasting Group PLC		1,900,376		20,262,030
Centrica PLC		2,211,102		12,407,909
Compass Group PLC		5,709,487		27,722,389
GlaxoSmithKline PLC		482,985		13,671,129
Group 4 Securicor PLC		3,286,910		10,879,398
HSBC Holdings PLC		971,360		17,609,253
Morrison W Supermarket		3,649,277		15,358,822
Old Mutual PLC		3,172,102		9,880,894
Pearson PLC		808,116		11,483,178
Reed Elsevier PLC		89,874		963,376
Rentokil Initial PLC		3,336,007		9,534,748
Royal Bank of Scotland Group PLC		706,882		23,961,965
Standard Life PLC *		555,060		2,776,921
Tesco PLC		1,174,590		8,429,142
Unilever PLC		511,051		12,210,169
Vodafone Group PLC		8,760,506		18,956,074

				264,854,186

TOTAL COMMON STOCKS (Cost $827,593,011)			$	933,020,457


SHORT TERM INVESTMENTS - 10.82%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	104,966,722	$	104,966,722

TOTAL SHORT TERM INVESTMENTS
(Cost $104,966,722)			$	104,966,722


REPURCHASE AGREEMENTS - 2.04%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$19,805,173 on 09/01/2006,
collateralized by $20,075,000
Federal National Mortgage
Association, 5.125% due
12/15/2008 (valued at
$20,200,469, including interest) (c)	$	19,803,000	$	19,803,000

TOTAL REPURCHASE AGREEMENTS
(Cost $19,803,000)			$	19,803,000

Total Investments (International Value Fund)
(Cost $952,362,733) - 109.04%			$ 1,057,790,179
Liabilities in Excess of Other Assets - (9.04)%				(87,699,068)

TOTAL NET ASSETS - 100.00%			$	970,091,111

The accompanying notes are an integral part of the financial statements. 286

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

The portfolio had the following five top industry concentrations as of August 31, 2006 (as a percentage of total net assets):

Telecommunications Equipment & Services	11.26%
Insurance	9.81%
Electronics	9.56%
Banking	5.96%
International Oil	4.27%

Investment Quality Bond Fund
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 22.00%
Treasury Inflation Protected
Securities (d) - 4.48%
1.875% due 07/15/2013	$	2,098,987	$	2,047,004
2.375% due 04/15/2011 (a)		3,679,560		3,694,506

				5,741,510
U.S. Treasury Bonds - 8.46%
6.25% due 08/15/2023 (a)		2,000,000		2,293,750
7.875% due 02/15/2021 (a)		2,339,000		3,043,624
8.125% due 08/15/2019 (a)****		885,000		1,156,930
8.75% due 08/15/2020 (a)		1,535,000		2,122,616
8.875% due 08/15/2017 to 02/15/2019 (a)		1,655,000		2,239,163

				10,856,083
U.S. Treasury Notes - 9.06%
4.25% due 08/15/2013 (a)		9,775,000		9,504,661
6.50% due 02/15/2010 (a)		2,000,000		2,112,656

				11,617,317

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $27,908,856)			$	28,214,910


U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.76%
Federal Home Loan Bank - 1.66%
5.80% due 09/02/2008 (a)		2,105,000		2,129,540
Federal Home Loan Mortgage Corp. - 2.48%
4.00% due 11/15/2019		135,265		120,907
5.00% due 03/01/2019 to 12/01/2019		900,751		882,925
6.30% due 03/15/2023		6,572		6,586
6.50% due 04/01/2029 to 08/01/2034		35,196		35,812
6.625% due 09/15/2009 (a)		2,030,000		2,119,557
7.50% due 06/01/2010 to 05/01/2028		12,264		12,687

				3,178,474
Federal National Mortgage
Association - 8.22%
3.125% due 12/15/2007 (a)		541,000		527,225
4.682% due 05/01/2013		215,961		209,621
4.86% due 01/01/2015		3,013,405		2,927,729
4.874% due 02/01/2013		359,910		352,561
5.00% due 03/01/2019 to 06/01/2019		1,774,188		1,740,144
5.25% due 04/15/2007 (a)		676,000		675,545
5.50% due 08/01/2035 to 11/01/2035		1,430,943		1,404,983
5.636% due 12/01/2011		225,987		228,729
5.885% due 11/01/2011		238,262		243,500
6.051% due 03/01/2012 to 05/01/2012		282,761		290,853
6.085% due 10/01/2011		155,578		159,579

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount	Value


U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal National Mortgage
Association (continued)
6.28% due 04/01/2011	$	135,265 $	140,347
6.34% due 01/01/2008		33,083	33,180
6.43% due 01/01/2008		38,355	38,500
6.44% due 02/01/2011		471,273	490,404
6.46% due 06/01/2009		185,288	189,089
6.50% due 09/01/2031		153	156
6.625% due 09/15/2009 (a)		850,000	888,208
6.80% due 10/01/2007		5,254	5,273
7.00% due 06/01/2029		588	606

			10,546,232
Government National Mortgage
Association - 0.33%
6.00% due 08/15/2008 to 04/15/2035		125,644	126,733
6.50% due 06/15/2028 to 08/15/2034		74,038	75,803
7.00% due 11/15/2031 to 05/15/2033		215,479	222,264
8.00% due 07/15/2030 to 10/15/2030		3,677	3,901

			428,701
Housing & Urban Development - 0.07%
7.498% due 08/01/2011		81,000	86,241

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $16,522,261)		$	16,369,188


FOREIGN GOVERNMENT OBLIGATIONS - 0.27%
Mexico - 0.03%
Government of Mexico
6.75% due 09/27/2034		30,000	31,830
South Africa - 0.12%
Republic of South Africa
7.375% due 04/25/2012 (a)		143,000	153,725
Trinidad and Tobago - 0.12%
Republic of Trinidad & Tobago
9.75% due 07/01/2020		117,000	157,449

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $352,807)		$	343,004


CORPORATE BONDS - 41.12%
Advertising - 0.01%
R.H. Donnelley Corp., Series A-2
6.875% due 01/15/2013		10,000	8,975
Aerospace - 0.40%
Argo-Tech Corp.
9.25% due 06/01/2011		5,000	5,162
DRS Technologies, Inc.
6.625% due 02/01/2016		5,000	4,863
7.625% due 02/01/2018		5,000	5,000
Goodrich Corp.
7.10% due 11/15/2027		240,000	262,503
Moog, Inc.
6.25% due 01/15/2015		1,000	943
Northrop Grumman Corp.
7.875% due 03/01/2026		15,000	18,344

The accompanying notes are an integral part of the financial statements. 287

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount	Value


CORPORATE BONDS (continued)
Aerospace (continued)
Raytheon Company
4.85% due 01/15/2011	$	208,000 $	203,793
Sequa Corp.
9.00% due 08/01/2009		6,000	6,330

			506,938
Agriculture - 0.38%
Archer-Daniels-Midland Company
6.75% due 12/15/2027		135,000	148,788
Bunge Limited Finance Corp.
5.10% due 07/15/2015		79,000	72,665
Case New Holland, Inc.
7.125% due 03/01/2014		10,000	9,875
9.25% due 08/01/2011		12,000	12,720
Monsanto Co.
5.50% due 07/30/2035		125,000	114,106
5.50% due 08/15/2025		135,000	125,899

			484,053
Air Travel - 0.57%
American Airlines
3.857% due 07/09/2010		24,257	22,981
Continental Airlines, Inc., Series 974A
6.90% due 01/02/2018		125,059	128,077
Continental Airlines, Inc., Series 981A
6.648% due 09/15/2017		296,606	295,266
Continental Airlines, Inc., Series ERJ1
9.798% due 04/01/2021		14,523	15,213
Southwest Airlines Company
5.125% due 03/01/2017		200,000	187,782
5.25% due 10/01/2014		84,000	81,318

			730,637
Aluminum - 0.33%
Alcan Aluminum, Ltd.
6.125% due 12/15/2033		27,000	26,558
6.45% due 03/15/2011		159,000	164,911
Alcoa, Inc.
6.75% due 01/15/2028		208,000	229,829

			421,298
Auto Parts - 0.01%
Tenneco Automotive, Inc., Series B
10.25% due 07/15/2013		1,000	1,089
TRW Automotive, Inc.
11.00% due 02/15/2013		2,000	2,175
United Rentals North America, Inc.
6.50% due 02/15/2012		10,000	9,475
Visteon Corp.
7.00% due 03/10/2014		3,000	2,662

			15,401
Auto Services - 0.02%
Avis Budget Car Rental LLC
7.625% due 05/15/2014		15,000	14,250
Hertz Corp., Class A
8.875% due 01/01/2014		5,000	5,187

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount	Value


CORPORATE BONDS (continued)
Auto Services (continued)
Hertz Corp., Class A (continued)
10.50% due 01/01/2016	$	5,000 $	5,388

			24,825
Automobiles - 0.49%
Chrysler Corp.
7.45% due 02/01/2097		135,000	137,944
DaimlerChrysler N.A. Holding Corp.
4.75% due 01/15/2008		305,000	301,749
8.50% due 01/18/2031		150,000	180,127
Ford Motor Company
7.45% due 07/16/2031 (a)		10,000	7,850
General Motors Corp.
8.375% due 07/15/2033		4,000	3,350

			631,020
Banking - 4.31%
American Express Centurion Bank
4.375% due 07/30/2009		250,000	244,888
Bank of America Corp.
4.375% due 12/01/2010		436,000	421,558
7.40% due 01/15/2011		402,000	433,825
BB & T Corp.
4.90% due 06/30/2017		192,000	180,845
Chase Manhattan Corp.
7.00% due 11/15/2009		135,000	141,361
Chevy Chase Bank
6.875% due 12/01/2013		5,000	4,975
China Development Bank
5.00% due 10/15/2015		175,000	168,532
Citicorp
6.375% due 11/15/2008		231,000	236,526
First Republic Bank of San Francisco
7.75% due 09/15/2012		111,000	121,733
First Union National Bank
7.80% due 08/18/2010		350,000	379,998
Frost National Bank
6.875% due 08/01/2011		135,000	143,468
HBOS PLC
6.00% due 11/01/2033		210,000	212,863
Huntington National Bank
4.90% due 01/15/2014 (a)		250,000	238,062
National Australia Bank Ltd.
8.60% due 05/19/2010		23,000	25,471
National City Corp.
6.875% due 05/15/2019		260,000	285,664
NBD Bancorp
8.25% due 11/01/2024		270,000	330,173
Regions Financial Corp.
7.00% due 03/01/2011		12,000	12,754
Republic New York Corp.
9.50% due 04/15/2014		135,000	166,269
Royal Bank of Scotland Group PLC
6.40% due 04/01/2009		696,000	720,663
Sanwa Bank Ltd., New York Branch
7.40% due 06/15/2011 (a)		300,000	323,123

The accompanying notes are an integral part of the financial statements. 288

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Banking (continued)
Sovereign Bancorp, Inc.
4.80% due 09/01/2010	$	30,000	$	29,202
VTB Capital SA
6.25% due 07/02/2035		150,000		149,625
Wachovia Corp.
5.50% due 08/01/2035 (a)		250,000		232,924
Wells Fargo Bank NA
7.55% due 06/21/2010		300,000		323,695

				5,528,197
Broadcasting - 1.34%
BSkyB Finance UK Ltd.
5.625% due 10/15/2015		300,000		291,538
CanWest Media, Inc.
8.00% due 09/15/2012		10,000		9,675
Comcast Cable Communications
8.50% due 05/01/2027		189,000		228,955
CSC Holdings, Inc.
7.625% due 07/15/2018 (a)		21,000		21,184
Grupo Televisa S.A.
6.625% due 03/18/2025 (a)		250,000		250,707
Liberty Media Corp.
5.70% due 05/15/2013 (a)		4,000		3,758
7.875% due 07/15/2009		9,000		9,407
8.25% due 02/01/2030		2,000		1,990
News America Holdings, Inc.
7.75% due 01/20/2024 (a)		328,000		357,659
Viacom, Inc.
6.25% due 04/30/2016		277,000		273,408
7.875% due 07/30/2030		250,000		271,806

				1,720,087
Building Materials & Construction - 0.46%
American Standard, Inc.
7.375% due 02/01/2008		135,000		137,701
Lowe's Companies, Inc.
6.50% due 03/15/2029		273,000		295,964
SCL Terminal Aereo Santiago
6.95% due 07/01/2012		148,237		150,843

				584,508
Business Services - 0.21%
CB Richard Ellis Services, Inc.
9.75% due 05/15/2010		1,000		1,067
FedEx Corp., Series 981A
6.72% due 01/15/2022		157,637		168,491
GTECH Holdings Corp.
4.75% due 10/15/2010		45,000		44,981
Invensys PLC
9.875% due 03/15/2011		6,000		6,480
Sungard Data Systems, Inc.
9.125% due 08/15/2013		23,000		23,748
10.25% due 08/15/2015		4,000		4,085
Xerox Corp.
6.40% due 03/15/2016		10,000		9,901
7.20% due 04/01/2016		15,000		15,600

				274,353

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cable and Television - 1.30%
Cablevision Systems Corp., Series B
8.00% due 04/15/2012	$	13,000	$	13,065
Charter Communications Holdings I LLC
11.00% due 10/01/2015		25,000		22,188
Coleman Cable, Inc.
9.875% due 10/01/2012		15,000		14,606
Comcast Corp.
5.85% due 11/15/2015		350,000		345,786
6.50% due 11/15/2035		175,000		172,547
Cox Communications, Inc.
7.125% due 10/01/2012		208,000		220,051
Cox Enterprises, Inc.
4.375% due 05/01/2008		64,000		62,666
Echostar DBS Corp.
6.375% due 10/01/2011		6,000		5,842
LIN Television Corp.
6.50% due 05/15/2013		5,000		4,613
LIN Television Corp., Series B
6.50% due 05/15/2013		7,000		6,458
Mediacom Broadband LLC
8.50% due 10/15/2015		17,000		16,830
Mediacom LLC/Mediacom Capital Corp.
7.875% due 02/15/2011 (a)		5,000		4,912
9.50% due 01/15/2013		4,000		4,110
Quebecor Media, Inc.
7.75% due 03/15/2016		10,000		9,900
Rogers Cable, Inc.
6.25% due 06/15/2013		10,000		9,737
Shaw Communications, Inc.
8.25% due 04/11/2010		4,000		4,205
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		6,000		6,075
TCI Communications, Inc.
8.75% due 08/01/2015		183,000		214,292
Time Warner, Inc.
7.25% due 10/15/2017		60,000		63,951
7.70% due 05/01/2032		427,000		466,775

				1,668,609
Cellular Communications - 0.62%
American Cellular Corp.
10.00% due 08/01/2011		6,000		6,240
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		94,000		102,562
8.75% due 03/01/2031		217,000		274,274
Cingular Wireless LLC
7.125% due 12/15/2031		67,000		72,434
Cingular Wireless Services, Inc.
8.125% due 05/01/2012		56,000		62,698
Dobson Cellular Systems, Inc.
8.375% due 11/01/2011 (a)		15,000		15,525
Rogers Wireless, Inc.
9.625% due 05/01/2011		27,000		30,173
Vodafone Group PLC
7.75% due 02/15/2010		211,000		225,603

				789,509

The accompanying notes are an integral part of the financial statements. 289

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Chemicals - 0.77%
Agrium Inc.
7.125% due 05/23/2036	$	225,000	$	235,193
Cytec Industries, Inc.
4.60% due 07/01/2013		135,000		123,711
5.50% due 10/01/2010		90,000		88,966
Dow Chemical Company
5.75% due 12/15/2008		54,000		54,561
6.00% due 10/01/2012		154,000		158,306
Equistar Chemicals LP
10.625% due 05/01/2011		8,000		8,600
IMC Global, Inc.
7.30% due 01/15/2028		3,000		2,670
IMC Global, Inc., Series B
10.875% due 06/01/2008		43,000		45,903
11.25% due 06/01/2011		4,000		4,225
Lyondell Chemical Company, Series A
9.625% due 05/01/2007		9,000		9,180
Methanex Corp.
8.75% due 08/15/2012		4,000		4,250
Millennium America, Inc.
9.25% due 06/15/2008		4,000		4,070
Nalco Company
7.75% due 11/15/2011		4,000		4,070
Potash Corp.
4.875% due 03/01/2013		250,000		240,919

				984,624
Coal - 0.00%
Massey Energy Company
6.625% due 11/15/2010		2,000		1,970
Containers & Glass - 0.02%
Ball Corp.
6.625% due 03/15/2018		5,000		4,812
Crown Americas LLC
7.625% due 11/15/2013		5,000		5,025
7.75% due 11/15/2015		5,000		5,025
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		16,000		16,200

				31,062
Correctional Facilities - 0.00%
Corrections Corp. of America
6.25% due 03/15/2013		2,000		1,933
Crude Petroleum & Natural Gas - 0.19%
Burlington Resources Finance Company
7.40% due 12/01/2031		159,000		189,847
Chesapeake Energy Corp.
6.50% due 08/15/2017		10,000		9,275
6.625% due 01/15/2016		12,000		11,520
7.50% due 09/15/2013		3,000		3,030
7.625% due 07/15/2013		10,000		10,200
PetroHawk Energy Corp.
9.125% due 07/15/2013		15,000		15,262
Premcor Refining Group, Inc.
6.75% due 05/01/2014		4,000		4,103

				243,237

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Domestic Oil - 0.56%
Delta Petroleum Corp.
7.00% due 04/01/2015	$	25,000	$	23,625
Devon Financing Corp., ULC
6.875% due 09/30/2011		305,000		323,449
Exco Resources, Inc.
7.25% due 01/15/2011		4,000		3,890
Hess Corp.
7.30% due 08/15/2031		2,000		2,225
Magnum Hunter Resources, Inc.
9.60% due 03/15/2012		2,000		2,120
Motiva Enterprises LLC
5.20% due 09/15/2012		148,000		147,076
Valero Energy Corp.
8.75% due 06/15/2030		162,000		208,154
Whiting Petroleum Corp.
7.00% due 02/01/2014		3,000		2,955
7.25% due 05/01/2013		3,000		2,963

				716,457

Drugs & Health Care - 0.03%
Allegiance Corp.
7.00% due 10/15/2026		13,000		13,874
Biovail Corp.
7.875% due 04/01/2010		10,000		9,975
Rite Aid Corp.
8.125% due 05/01/2010		18,000		18,068

				41,917

Electrical Equipment - 0.31%
Exelon Generation Company LLC
5.35% due 01/15/2014		187,000		182,538
Nisource Finance Corp.
3.20% due 11/01/2006		81,000		80,698
Northern States Power Co.
6.25% due 06/01/2036		125,000		130,760

				393,996

Electrical Utilities - 2.36%
AES Corp.
9.00% due 05/15/2015		14,000		15,102
Alabama Power Company
5.875% due 12/01/2022		63,000		63,105
Arizona Public Service Company
6.375% due 10/15/2011		135,000		138,361
Avista Corp.
9.75% due 06/01/2008		17,000		18,015
Carolina Power & Light Company
6.50% due 07/15/2012		371,000		388,145
CMS Energy Corp.
8.50% due 04/15/2011		4,000		4,290
Commonwealth Edison Company
6.15% due 03/15/2012		92,000		94,011
Duke Energy Corp.
5.375% due 01/01/2009		135,000		134,922
Edison Mission Energy
7.75% due 06/15/2016		20,000		20,000
Georgia Power Company
5.25% due 12/15/2015		150,000		147,494

The accompanying notes are an integral part of the financial statements. 290

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Electrical Utilities (continued)
Midwest Generation LLC
8.75% due 05/01/2034	$	6,000	$	6,390
Nevada Power Company
9.00% due 08/15/2013		3,000		3,270
New York State Electric & Gas Corp.
5.75% due 05/01/2023		74,000		70,359
Northern States Power Co.
6.50% due 03/01/2028		67,000		71,791
NSTAR
8.00% due 02/15/2010		270,000		291,302
Ohio Edison Company
4.00% due 05/01/2008		312,000		304,736
Old Dominion Electric Coop.
6.25% due 06/01/2011		141,000		146,532
Oncor Electric Delivery Company
6.375% due 05/01/2012		158,000		162,364
Pacificorp
6.375% due 05/15/2008		135,000		137,220
Pacificorp Australia LLC
6.15% due 01/15/2008		111,000		112,038
PSEG Power LLC
8.625% due 04/15/2031		154,000		197,354
Puget Sound Energy, Inc.
7.00% due 03/09/2029		54,000		59,038
Reliant Energy, Inc.
6.75% due 12/15/2014		15,000		14,138
Southern California Edison Company
6.00% due 01/15/2034		201,000		202,115
TXU Corp., Series O
4.80% due 11/15/2009		74,000		71,515
TXU Corp., Series P
5.55% due 11/15/2014		26,000		24,243
Wisconsin Electric Power Company
6.50% due 06/01/2028		94,000		100,751
Wisconsin Energy Corp.
6.20% due 04/01/2033		33,000		33,178

				3,031,779
Energy - 0.47%
Aquila, Inc.
9.95 due 02/01/2011		10,000		11,058
Midamerican Funding LLC
6.75% due 03/01/2011		260,000		273,397
Mirant North America LLC
7.375% due 12/31/2013		20,000		19,800
NRG Energy, Inc.
7.25% due 02/01/2014		5,000		4,938
7.375% due 02/01/2016		20,000		19,700
Peabody Energy Corp.
6.875% due 03/15/2013		11,000		10,890
PPL Energy Supply LLC
6.20% due 05/15/2016 (a)		250,000		255,802
TECO Energy, Inc.
6.75% due 05/01/2015		2,000		1,992

				597,577

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services - 7.66%
Aiful Corp.
5.00% due 08/10/2010	$	225,000	$	216,513
AMBAC Financial Group, Inc.
5.95% due 12/05/2035		185,000		181,462
American Financial Group, Inc.
7.125% due 04/15/2009		245,000		246,576
American General Finance Corp.
5.375% due 10/01/2012		154,000		152,495
Ameriprise Financial, Inc.
5.65% due 11/15/2015		275,000		274,423
Amerus Capital I
8.85% due 02/01/2027		101,000		106,143
Arch Western Finance LLC
6.75% due 07/01/2013		16,000		15,440
Associates Corp. of North America
8.55% due 07/15/2009		81,000		87,960
Beneficial Corp.
8.40% due 05/15/2008		47,000		49,296
CIT Group, Inc.
5.00% due 02/01/2015 (a)		300,000		286,804
Citigroup, Inc.
4.875% due 05/07/2015		586,000		559,591
Credit Suisse First Boston USA, Inc.
6.125% due 11/15/2011		450,000		464,712
E*Trade Financial Corp.
7.375% due 09/15/2013		2,000		2,020
8.00% due 06/15/2011		3,000		3,112
Equitable Companies, Inc.
7.00% due 04/01/2028		235,000		258,074
Erac USA Finance Company
8.00% due 01/15/2011		534,000		583,924
Farmers Exchange Capital
7.05% due 07/15/2028		350,000		351,570
Ford Motor Credit Company
6.625% due 06/16/2008		20,000		19,668
7.00% due 10/01/2013 (a)		6,000		5,600
General Electric Capital Corp.
6.125% due 02/22/2011		67,000		69,290
6.75% due 03/15/2032		634,000		715,536
General Motors Acceptance Corp.
6.875% due 09/15/2011		135,000		132,959
8.00% due 11/01/2031 (a)		30,000		30,321
Goldman Sachs Group, Inc.
6.125% due 02/15/2033		304,000		299,308
6.875% due 01/15/2011		208,000		219,621
Hartford Financial Services Group, Inc.
7.90% due 06/15/2010		27,000		29,222
Household Finance Corp.
6.375% due 11/27/2012		410,000		427,722
7.00% due 05/15/2012		283,000		304,416
International Lease Finance Corp.
5.75% due 10/15/2006		94,000		94,008
5.875% due 05/01/2013		150,000		152,863
John Deere Capital Corp.
7.00% due 03/15/2012		104,000		111,611

The accompanying notes are an integral part of the financial statements. 291

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
JP Morgan Chase Capital XV
5.875% due 03/15/2035	$	467,000	$	442,744
JSG Funding PLC
9.625% due 10/01/2012		2,000		2,087
Lehman Brothers Holdings, Inc.
4.375% due 11/30/2010 (a)		117,000		112,883
Mizuho Financial Group, Cayman
5.79% due 04/15/2014		246,000		247,053
Morgan Stanley
4.75% due 04/01/2014		401,000		378,949
6.75% due 04/15/2011		106,000		111,659
Morgan Stanley Dean Witter
6.60% due 04/01/2012		135,000		142,396
Nationwide Financial Services, Inc.
6.25% due 11/15/2011		196,000		202,602
Pemex Finance, Ltd.
8.875% due 11/15/2010		162,000		173,839
Sun Canada Financial Company
7.25% due 12/15/2015		229,000		247,796
Sunamerica, Inc.
8.125% due 04/28/2023		135,000		166,604
TIAA Global Markets
4.125% due 11/15/2007		200,000		196,348
UFJ Finance Aruba AEC
6.75% due 07/15/2013		111,000		118,129
United States Bancorp Oregon
7.50% due 06/01/2026		700,000		826,929

				9,822,278
Food & Beverages - 1.32%
Cia Brasileira de Bebidas
8.75% due 09/15/2013		371,000		426,650
Conagra, Inc.
6.75% due 09/15/2011		275,000		289,048
Constellation Brands, Inc.
7.25% due 09/01/2016		15,000		15,075
General Mills, Inc.
6.00% due 02/15/2012		86,000		88,036
Kraft Foods, Inc.
5.625% due 11/01/2011		160,000		161,016
6.50% due 11/01/2031		266,000		282,053
Molson Coors Capital Financial
4.85% due 09/22/2010		117,000		114,521
Pepsi Bottling Group, Inc., Series B
7.00% due 03/01/2029		142,000		160,927
Tricon Global Restaurants, Inc.
7.65% due 05/15/2008		147,000		151,918

				1,689,244
Forest Products - 0.29%
Weyerhaeuser Company
6.75% due 03/15/2012		308,000		322,112
7.95% due 03/15/2025		40,000		43,580

				365,692
Funeral Services - 0.01%
Service Corp. International
7.00% due 06/15/2017		20,000		19,150

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Gas & Pipeline Utilities - 0.58%
Duke Energy Field Services
5.75% due 11/15/2006	$	33,000	$	33,006
El Paso Production Holding Company
7.75% due 06/01/2013		10,000		10,150
Kinder Morgan Energy Partners LP
7.125% due 03/15/2012		208,000		219,361
National Gas Company
6.05% due 01/15/2036		250,000		237,569
Northern Border Partners, LP
7.10% due 03/15/2011		135,000		142,993
Praxair, Inc.
6.50% due 03/01/2008		81,000		82,463
Tennessee Gas Pipeline Company
8.375% due 06/15/2032		5,000		5,633
Williams Companies, Inc.
7.125% due 09/01/2011		13,000		13,195
7.875% due 09/01/2021		1,000		1,018
8.125% due 03/15/2012		1,000		1,055

				746,443
Healthcare Products - 0.02%
Angiotech Pharmaceuticals, Inc.
7.75% due 04/01/2014		4,000		3,900
CDRV Investors, Inc.
zero coupon, Step up to 9.625% on
01/01/2010 due 01/01/2015		28,000		20,160

				24,060
Healthcare Services - 0.16%
DaVita, Inc.
6.625% due 03/15/2013		2,000		1,950
7.25% due 03/15/2015		2,000		1,960
Insight Health Services Corp.
9.174% due 11/01/2011		20,000		18,300
WellPoint, Inc.
5.00% due 01/15/2011		185,000		181,866

				204,076
Homebuilders - 0.62%
Beazer Homes USA, Inc.
8.625% due 05/15/2011		12,000		12,045
Centex Corp.
7.875% due 02/01/2011		260,000		279,115
D.R. Horton, Inc.
7.875% due 08/15/2011		225,000		239,444
9.75% due 09/15/2010 (a)		14,000		15,495
KB Home
6.25% due 06/15/2015 (a)		5,000		4,507
Pulte Homes, Inc.
7.875% due 08/01/2011		100,000		107,437
8.125% due 03/01/2011		125,000		134,197

				792,240
Hotels & Restaurants - 0.20%
Aztar Corp.
9.00% due 08/15/2011		4,000		4,180
Marriott International, Inc.
4.625% due 06/15/2012		228,000		215,762

The accompanying notes are an integral part of the financial statements. 292

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Hotels & Restaurants (continued)
Park Place Entertainment Corp.
8.125% due 05/15/2011	$	24,000	$	25,260
Riviera Holdings Corp.
11.00% due 06/15/2010		10,000		10,525

				255,727

Household Products - 0.29%
Procter & Gamble, Series A
9.36% due 01/01/2021		295,386		371,850
Industrial Machinery - 0.01%
The Manitowoc Company, Inc.
10.50% due 08/01/2012		7,000		7,525
Industrials - 0.02%
Dynegy Holdings, Inc.
7.125% due 05/15/2018		15,000		13,237
Goodman Global Holding Company, Inc.
7.875% due 12/15/2012 (a)		10,000		9,375

				22,612

Insurance - 4.70%
AAG Holding Company, Inc.
6.875% due 06/01/2008		231,000		231,232
ACE Capital Trust II
9.70% due 04/01/2030		198,000		257,645
ACE INA Holdings, Inc.
5.875% due 06/15/2014		125,000		124,802
Aetna Inc.
6.00% due 06/15/2016		250,000		254,572
AIG SunAmerica Global Financing X
6.90% due 03/15/2032		100,000		110,700
Allied World Assurance Holdings Ltd.
7.50% due 08/01/2016		145,000		148,391
Allstate Corp.
5.55% due 05/09/2035		294,000		272,430
Cigna Corp.
7.875% due 05/15/2027		11,000		12,738
Citizens Property Insurance Corp.
7.125% due 02/25/2019		503,000		562,553
Dai Ichi Mutual Life Insurance Company
5.73% due 03/17/2014		200,000		198,778
Equitable Life Assurance Society
7.70% due 12/01/2015		250,000		285,082
Everest Reinsurance Holdings, Inc.
8.75% due 03/15/2010		394,000		431,340
Fidelity National Title Group, Inc.
7.30% due 08/15/2011		81,000		84,233
Jackson National Life Insurance Company
8.15% due 03/15/2027		377,000		456,306
Liberty Mutual Insurance Company
7.697% due 10/15/2097		429,000		424,920
Metlife, Inc.
5.375% due 12/15/2012		150,000		149,458
5.70% due 06/15/2035		208,000		197,714
Nationwide Mutual Insurance Company
8.25% due 12/01/2031		260,000		311,966
Navigators Group, Inc.
7.00% due 05/01/2016 (a)		59,000		59,858

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Insurance (continued)
New York Life Insurance Company
5.875% due 05/15/2033	$	100,000	$	100,191
Ohio National Life Insurance Company
8.50% due 05/15/2026		155,000		181,316
Premium Asset Trust
4.125% due 03/12/2009		87,000		81,874
Principal Life Global Funding I
6.125% due 10/15/2033		108,000		110,520
Prudential Financial
7.65% due 07/01/2007		200,000		203,878
Reinsurance Group of America, Inc.
6.75% due 12/15/2011		135,000		140,022
Safeco Corp.
4.875% due 02/01/2010		132,000		130,120
7.25% due 09/01/2012		18,000		19,597
The St. Paul Companies, Inc.
5.50% due 12/01/2015		55,000		54,068
5.75% due 03/15/2007		127,000		127,223
W.R. Berkley Corp.
5.125% due 09/30/2010		54,000		53,200
5.60% due 05/15/2015 (a)		263,000		255,410

				6,032,137
International Oil - 0.31%
Canadian Natural Resources, Ltd.
6.45% due 06/30/2033		37,000		37,768
Canadian Oil Sands
7.90% due 09/01/2021		135,000		157,218
Kerr-McGee Corp.
7.125% due 10/15/2027		15,000		15,963
Newfield Exploration Co.
6.625% due 04/15/2016		10,000		9,725
Pemex Project Funding Master Trust
9.125% due 10/13/2010		150,000		167,250
Pioneer Natural Resources Company
6.875% due 05/01/2018		15,000		14,814

				402,738
Leisure Time - 0.09%
AMC Entertainment, Inc.
11.00% due 02/01/2016 (a)		15,000		16,294
Majestic Star Casino LLC
9.75% due 01/15/2011		15,000		14,663
Mandalay Resort Group
10.25% due 08/01/2007		7,000		7,245
MGM Mirage, Inc.
6.00% due 10/01/2009		20,000		19,550
Movie Gallery, Inc.
11.00% due 05/01/2012		2,000		1,335
MTR Gaming Group, Inc.
9.00% due 06/01/2012		10,000		10,075
OED Corp./ Diamond Jo
8.75% due 04/15/2012		15,000		14,962
Seneca Gaming Corp.
7.25% due 05/01/2012		1,000		982
Station Casinos, Inc.
6.00% due 04/01/2012		5,000		4,781

The accompanying notes are an integral part of the financial statements. 293

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Leisure Time (continued)
Station Casinos, Inc. (continued)
6.625% due 03/15/2018	$	5,000	$	4,463
6.875% due 03/01/2016		11,000		10,189
Wynn Las Vegas LLC
6.625% due 12/01/2014		9,000		8,595

				113,134

Life Sciences - 0.00%
Fisher Scientific International, Inc.
6.125% due 07/01/2015		4,000		3,955
6.75% due 08/15/2014		1,000		1,014

				4,969

Manufacturing - 0.50%
Koppers, Inc.
9.875% due 10/15/2013		1,000		1,083
Siemens Financierings NV
5.75% due 10/17/2016		300,000		303,626
Tyco International Group SA
6.75% due 02/15/2011		325,000		342,370

				647,079

Medical-Hospitals - 0.38%
HCA, Inc.
6.375% due 01/15/2015		20,000		15,900
7.875% due 02/01/2011		20,000		19,050
Laboratory Corp. of America Holdings
5.625% due 12/15/2015		200,000		197,074
Quest Diagnostics, Inc.
5.45% due 11/01/2015		125,000		121,399
7.50% due 07/12/2011		100,000		108,270
Tenet Healthcare Corp.
9.875% due 07/01/2014		25,000		24,375
Triad Hospitals, Inc.
7.00% due 05/15/2012		4,000		3,930

				489,998

Metal & Metal Products - 0.19%
FastenTech, Inc.
11.50% due 05/01/2011		10,000		10,200
Hawk Corp.
8.75% due 11/01/2014		2,000		2,000
Inco, Ltd.
5.70% due 10/15/2015		233,000		226,069
Novelis, Inc.
7.25% due 02/15/2015		3,000		2,850

				241,119

Mining - 0.16%
Corporacion Nacional Del Cobre de Chile -
CODELCO
6.375% due 11/30/2012 (a)		200,000		207,582
Newspapers - 0.10%
News America Holdings, Inc.
9.25% due 02/01/2013 (a)		109,000		128,340
Office Furnishings & Supplies - 0.00%
IKON Office Solutions, Inc.
7.75% due 09/15/2015		5,000		5,025

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Paper - 0.24%
Abitibi-Consolidated, Inc.
8.55% due 08/01/2010 (a)	$	9,000	$	8,887
Bowater Canada Finance Corp.
7.95% due 11/15/2011 (a)		16,000		15,360
Georgia-Pacific Corp.
8.00% due 01/15/2024		7,000		6,895
Norske Skog Canada, Ltd.
8.625% due 06/15/2011		5,000		4,913
Temple-Inland, Inc.
6.375% due 01/15/2016		100,000		102,600
6.625% due 01/15/2018		125,000		129,428
Willamette Industries, Inc.
7.00% due 02/01/2018		40,000		41,786

				309,869
Petroleum Services - 0.66%
Baker Hughes, Inc.
6.875% due 01/15/2029		27,000		30,243
Halliburton Company
5.50% due 10/15/2010		192,000		192,757
Hornbeck Offshore Services, Inc.
6.125% due 12/01/2014		3,000		2,797
Noram Energy Corp.
6.50% due 02/01/2008		263,000		265,960
Petroleum Export, Ltd.
5.265% due 06/15/2011		113,800		111,731
Pride International, Inc.
7.375% due 07/15/2014		5,000		5,087
XTO Energy, Inc.
4.90% due 02/01/2014		250,000		236,827

				845,402
Pharmaceuticals - 0.37%
AmerisourceBergen Corp.
5.625% due 09/15/2012		3,000		2,919
5.875% due 09/15/2015		3,000		2,907
Athena Neurosciences, Inc.
7.25% due 02/21/2008		3,000		2,978
Mylan Laboratories, Inc.
6.375% due 08/15/2015		4,000		3,855
Omnicare, Inc.
6.75% due 12/15/2013		5,000		4,800
6.875% due 12/15/2015		5,000		4,781
Schering Plough Corp.
5.55% due 12/01/2013		85,000		84,837
6.75% due 12/01/2033 (b)		344,000		373,574

				480,651
Publishing - 0.10%
Dex Media East LLC
12.125% due 11/15/2012		4,000		4,460
Dex Media, Inc.
zero coupon, Step up to 9.00% on
11/15/2008 due 11/15/2013		7,000		5,827
8.00% due 11/15/2013		15,000		14,925
E.W. Scripps Company
6.625% due 10/15/2007		67,000		67,343

The accompanying notes are an integral part of the financial statements. 294

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Publishing (continued)
Scholastic Corp.
5.00% due 04/15/2013	$	35,000	$	30,918

				123,473
Railroads & Equipment - 0.13%
Canadian National Railway Company
7.375% due 10/15/2031		142,000		170,771
Greenbrier Companies, Inc.
8.375% due 05/15/2015		2,000		2,015

				172,786
Real Estate - 3.37%
AMB Property LP, REIT
5.45% due 12/01/2010		80,000		80,367
7.50% due 06/30/2018		106,000		117,317
Archstone-Smith Trust, REIT
5.75% due 03/15/2016		300,000		299,843
Developers Diversified Realty Corp., REIT
5.375% due 10/15/2012		228,000		224,122
Duke Realty Corp. LP, REIT
5.25% due 01/15/2010		275,000		271,946
EOP Operating LP, REIT
4.65% due 10/01/2010		175,000		169,114
ERP Operating LP, REIT
5.125% due 03/15/2016		201,000		192,208
5.375% due 08/01/2016		125,000		121,441
Federal Realty Investment Trust, REIT
5.65% due 06/01/2016		55,000		54,427
Health Care Property Investors, Inc., REIT
6.00% due 03/01/2015		175,000		174,196
7.072 due 06/08/2015 (b)		67,000		71,894
Healthcare Realty Trust, Inc., REIT
8.125% due 05/01/2011		377,000		409,368
Host Marriott LP, REIT
9.50% due 01/15/2007		16,000		16,180
Kimco Realty Corp. - REIT
5.584% due 11/23/2015		125,000		123,411
Liberty Property LP, REIT
7.25% due 03/15/2011		377,000		400,474
Prologis, REIT
5.625% due 11/15/2015		175,000		172,332
Realty Income Corp., REIT
5.375% due 09/15/2017		135,000		129,418
Reckson Operating Partnership, REIT
6.00% due 03/31/2016		235,000		234,522
Regency Centers LP, REIT
7.95% due 01/15/2011		169,000		183,873
Rouse Company LP, REIT
6.75% due 05/01/2013		15,000		14,934
Simon Property Group LP, REIT
5.10% due 06/15/2015		129,000		123,314
5.75% due 12/01/2015		225,000		225,095
Spieker Properties LP, REIT
7.25% due 05/01/2009		60,000		62,970
United Dominion Realty Trust, Inc., REIT
5.25% due 01/15/2016 (a)		142,000		136,002
6.05% due 06/01/2013		300,000		302,815

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Real Estate (continued)
Ventas Realty LP, REIT
6.75% due 06/01/2010	$	2,000	$	2,037
7.125% due 06/01/2015		3,000		3,071

				4,316,691

Retail - 0.28%
CVS Corp.
5.88% due 01/10/2028		360,597		354,930
Retail Grocery - 0.16%
Delhaize America, Inc.
9.00% due 04/15/2031		2,000		2,340
Kroger Co.
6.75% due 04/15/2012		179,000		187,464
Pathmark Stores, Inc.
8.75% due 02/01/2012		18,000		17,415

				207,219

Retail Trade - 0.60%
Federated Department Stores, Inc.
6.90% due 04/01/2029 (a)		156,000		159,594
Fortune Brands, Inc.
5.125% due 01/15/2011		245,000		240,167
Lazy Days RV Center, Inc.
11.75% due 05/15/2012		9,000		8,460
Neff Corp.
11.25% due 06/15/2012		5,000		5,375
Target Corp.
6.35% due 01/15/2011		142,000		147,898
Wal-Mart Stores, Inc.
4.125% due 02/15/2011		218,000		208,700

				770,194

Sanitary Services - 0.02%
Allied Waste North America, Inc.
8.50% due 12/01/2008		22,000		22,880
Semiconductors - 0.00%
MagnaChip Semiconductor SA
6.875% due 12/15/2011		2,000		1,630
8.00% due 12/15/2014		3,000		1,920

				3,550

Steel - 0.02%
International Steel Group, Inc.
6.50% due 04/15/2014		15,000		14,250
United States Steel LLC
10.75% due 08/01/2008		9,000		9,697

				23,947

Telecommunications Equipment &
Services - 0.82%
Bellsouth Corp.
4.75% due 11/15/2012		302,000		286,082
Citizens Communications Company
9.25% due 05/15/2011		12,000		13,125
France Telecom SA
7.75 due 03/01/2011		267,000		291,557
GCI, Inc.
7.25% due 02/15/2014		15,000		14,362

The accompanying notes are an integral part of the financial statements. 295

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Telecommunications Equipment &
Services (continued)
Insight Midwest LP
10.50% due 11/01/2010	$	12,000	$	12,450
Insight Midwest LP/ Insight Capital, Inc.
9.75% due 10/01/2009		4,000		4,070
Intelsat Bermuda Ltd.
9.25% due 06/15/2016		10,000		10,400
Intelsat Subsidiary Holding Co., Ltd.
8.25% due 01/15/2013		17,000		16,958
8.63% due 01/15/2015		2,000		2,020
PanAmSat Corp.
9.00% due 08/15/2014		1,000		1,018
SBC Communications, Inc.
5.875% due 08/15/2012		150,000		151,504
Singapore Telecommunications, Ltd.
7.375% due 12/01/2031		208,000		245,586
Syniverse Technologies Inc., Series B
7.75% due 08/15/2013		6,000		5,835
United States West Communications, Inc.
6.875% due 09/15/2033		3,000		2,685

				1,057,652

Telephone - 1.33%
Alltel Corp.
7.875% due 07/01/2032		40,000		45,578
Ameritech Capital Funding Corp.
6.45% due 01/15/2018		148,000		149,825
AT&T Corp.
7.30% due 11/15/2011 (b)		9,000		9,717
8.00% due 11/15/2031 (b)		2,000		2,389
British Telecommunications PLC
8.375%, Step up to 8.625% on 12/15/2006
due 12/15/2010 (b)		156,000		174,007
Qwest Capital Funding, Inc.
7.25% due 02/15/2011 (a)		5,000		4,950
Qwest Communications International, Inc.
7.25% due 02/15/2011		13,000		12,886
Sprint Capital Corp.
6.875% due 11/15/2028		402,000		405,926
Telecom Italia Capital SA
6.00% due 09/30/2034		409,000		369,260
Telefonica Emisones SAU
7.045% due 06/20/2036		175,000		183,001
Verizon Communications, Inc.
8.75% due 11/01/2021		285,000		339,093
Windstream Corp.
8.625% due 08/01/2016		10,000		10,575

				1,707,207

Tobacco - 0.25%
Alliance One International, Inc.
11.00% due 05/15/2012		2,000		2,000
Altria Group, Inc.
7.00% due 11/04/2013		269,000		292,639
Reynolds American, Inc.
7.25% due 06/01/2013		15,000		15,365

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Tobacco (continued)
Reynolds American, Inc. (continued)
7.30% due 07/15/2015	$	6,000	$	6,156

				316,160


TOTAL CORPORATE BONDS (Cost $53,612,872)			$	52,738,591


MUNICIPAL BONDS - 0.73%
Arizona - 0.11%
Phoenix Arizona Civic Improvement Corp.
6.30% due 07/01/2008		135,000		137,537
California - 0.25%
San Bernardino County California, Series A
5.15% due 08/01/2011		120,000		119,379
Southern California Public Power Authority Project,
Series B
6.93% due 05/15/2017		175,000		197,447

				316,826

Florida - 0.12%
Miami Beach Florida Redevelopment Agency Tax
Increment Revenue
8.95% due 12/01/2022		135,000		158,372
Indiana - 0.01%
Indiana Bond Bank Revenue
5.02% due 01/15/2016		15,000		14,574
Maryland - 0.03%
Maryland State Transportation Authority, Ltd.
5.84% due 07/01/2011		40,000		41,164
Michigan - 0.14%
Detroit Michigan Downtown Development Authority
6.20% due 07/01/2008		180,000		183,071
New Jersey - 0.02%
Jersey City, NJ, Municipal Utilities Authority
4.55% due 05/15/2012		20,000		19,298
New York - 0.05%
Sales Tax Asset Receivable Corp., Series B
4.25% due 10/15/2011		65,000		62,202

TOTAL MUNICIPAL BONDS (Cost $955,787)			$	933,044


COLLATERALIZED MORTGAGE
OBLIGATIONS - 9.97%
Asset Securitization Corp.,
Series 1997-D5, Class A1B
6.66% due 02/14/2043		26,290		26,320
Asset Securitization Corp.,
Series 1997-D5, Class A1D
6.85% due 02/14/2043		500,000		525,587
Banc of America Commercial Mortgage, Inc, Series
2006-2, Class A4
5.93% due 05/10/2045 (b)		500,000		513,083
Banc of America Commercial Mortgage, Inc.,
Series 2002-PB2 Class A4
6.186% due 06/11/2035		405,797		421,655

The accompanying notes are an integral part of the financial statements. 296

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2003-T12, Class A4
4.68% due 08/13/2039	$	405,797	$	389,876
Bear Stearns Commercial Mortgage Securities,
Series 2006-PW12, Class AM
5.93% due 09/11/2038 (b)		500,000		512,452
Bear Stearns Commercial Mortgage Securities,
Series 2005-T20, Class A4A
5.3028% due 10/12/2042 (b)		500,000		491,899
Chase Commercial Mortgage Securities Corp.,
Series 1998-1, Class A2
6.56% due 05/18/2030		429,031		434,705
Chase Commercial Mortgage Securities Corp.,
Series 1998-2, Class A2
6.39% due 11/18/2030		317,199		323,062
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2005-CD1, Class A4
5.3997% due 07/15/2044 (b)		500,000		493,988
Commercial Mortgage Asset Trust, Series
1999-C1, Class A3
6.64% due 01/17/2032		405,797		418,177
Commercial Mortgage Pass Through Certificates,
Series 2005-C6, Class A5A
5.116% due 06/10/2044 (b)		500,000		487,461
Commercial Mortgage Pass Through Certificates,
Series 2006-C7, Class A4
5.96% due 06/10/2046 (b)		500,000		513,311
CS First Boston Mortgage Securities Corp, Series
2003-C3, Class A5
3.936% due 05/15/2038		500,000		460,555
First Union - Chase Commercial Mortgage,
Series 1999-C2, Class A2
6.645% due 06/15/2031		363,674		373,606
General Electric Capital Assurance Company,
Series 2003-1, Class A5
5.7426% due 05/12/2035		89,275		90,888
Government National Mortgage Association, Series
2006-38, Class XS
1.92% IO due 09/16/2035 (b)		111,000		5,585
Greenwich Capital Commercial Funding Corp.,
Series 2005-GG5, Class A5
5.224% due 04/10/2037 (b)		500,000		491,577
GS Mortgage Securities Corp. II, Series 2006-GG6,
Class A4
5.553% due 04/10/2038 (b)		500,000		502,985
JP Morgan Chase Commercial Mortgage Securities
Corp, Series 2004-CBX, Class A6
4.899% due 01/12/2037		315,000		303,470
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2006-LDP7, Class A4
6.0658% due 04/15/2045 (b)		500,000		517,610
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2005-LDP4, Class A4
4.918% due 10/15/2042 (b)		500,000		480,465
LB-UBS Commercial Mortgage Trust,
Series 2001-C7, Class A3
5.642% due 12/15/2025		266,206		268,190

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
LB-UBS Commercial Mortgage Trust,
Series 2002-C1,Class A4
6.462% due 03/15/2031	$	202,898	$	213,614
LB-UBS Commercial Mortgage Trust,
Series 2006-C4, Class A4
6.0977% due 06/15/2038 (b)		500,000		518,747
Merrill Lynch Mortgage Trust, Series 2005-CIP1,
Class A4
5.047% due 07/12/2038 (b)		500,000		485,412
Merrill Lynch Mortgage Trust, Series 2006-C1,
Class A4
5.8442% due 05/12/2039 (b)		500,000		509,666
Morgan Stanley Capital I, Inc., Series 1998-WF2,
Class A2
6.54% due 07/15/2030		129,036		130,974
Morgan Stanley Capital I, Inc., Series 1999-WF1,
Class A2
6.21% due 11/15/2031		374,437		379,568
Morgan Stanley Dean Witter Capital I, Series
2001-TOP5, Class A4
6.39% due 10/15/2035		270,531		282,681
Morgan Stanley Dean Witter Capital I,
Series 2001, Class A4
6.39% due 07/15/2033		113,623		118,685
Morgan Stanley Dean Witter
Capital I, Series 2002-TOP7, Class A2
5.98% due 01/15/2039		40,579		41,779
Nomura Asset Securities Corp.,
Series 1998-D6, Class A1B
6.59% due 03/15/2030		385,507		392,015
Prudential Commercial Mortgage Trust, Series
2003-PWR1, Class A1
3.669% due 02/11/2036		290,506		278,271
Prudential Commercial Mortgage Trust,
Series 2003-PWR1, Class A2
4.493% due 02/11/2036		405,797		385,984

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $12,815,286)			$	12,783,903


ASSET BACKED SECURITIES - 6.91%
Advanta Business Card Master Trust,
Series 2005-A4, Class A4
4.75% due 01/20/2011		370,000		368,030
AESOP Funding II LLC, Series 2003-4, Class A
2.86% due 08/20/2009		235,000		225,555
AmeriCredit Automobile Receivables Trust,
Series 2005-AX, Class A4
3.93% due 10/06/2011		700,000		686,898
Bank One Auto Securitization Trust,
Series 2003-1, Class A4
2.43% due 03/22/2010		510,301		501,846
Capital One Multi-Asset Execution Trust,
Series 2003-A4, Class A4
3.65% due 07/15/2011		415,000		403,305
Carmax Auto Owner Trust, Series 2004-2, Class A4
3.46% due 09/15/2011		405,000		394,333

The accompanying notes are an integral part of the financial statements. 297

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Chase Manhattan Auto Owner Trust,
Series 2005-B, Class A4
4.88% due 06/15/2012	$	700,000	$	696,469
Ford Credit Auto Owner Trust, Series 2005-C,
Class A4
4.36% due 06/15/2010		279,000		273,998
Harley-Davidson Motorcycle Trust,
Series 2005-1, Class A2
3.76% due 12/17/2012		405,000		395,532
Honda Auto Receivables Owner Trust,
Series 2005-1, Class A4
3.82% due 05/21/2010		606,000		592,005
M&I Auto Loan Trust, Series 2005-1, Class A4
4.86% due 03/21/2011		700,000		695,472
Massachusetts RRB Special Purpose Trust,
Series 1999-1, Class A5
7.03% due 03/15/2012		600,000		626,842
Massachusetts RRB Special Purpose Trust,
Series 2001-1, Class A
6.53% due 06/01/2015		91,887		95,961
Peco Energy Transition Trust,
Series 2001-A, Class A1
6.52% due 12/31/2010		33,000		34,486
Providian Gateway Master Trust,
Series 2004-DA, Class A
3.35% due 09/15/2011		405,000		397,180
USAA Auto Owner Trust, Series 2004-1, Class A4
2.67% due 10/15/2010		112,000		109,806
USAA Auto Owner Trust, Series 2005-4, Class A4
4.89% due 08/15/2012		700,000		696,401
Wachovia Auto Owner Trust,
Series 2005-B, Class A5
4.93% due 11/20/2012		700,000		699,016
WFS Financial Owner Trust,
Series 2005-2, Class A4
4.39% due 11/19/2012		290,000		286,716
World Omni Auto Receivables Trust,
Series 2005-A, Class A4
3.82% due 11/12/2011		700,000		683,402

TOTAL ASSET BACKED SECURITIES
(Cost $8,889,777)			$	8,863,253


SHORT TERM INVESTMENTS - 23.89%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	30,637,942	$	30,637,942

TOTAL SHORT TERM INVESTMENTS
(Cost $30,637,942)			$	30,637,942

Investment Quality Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 7.57%
Repurchase Agreement with Banc of
America dated 08/31/2006 at
5.22% to be repurchased at
$9,704,407 on 9/1/2006,
collateralized by $9,230,000 U.S.
Treasury Notes, 5.50% due
08/15/2026 (valued at $9,899,828,
including interest)	$	9,703,000	$	9,703,000

TOTAL REPURCHASE AGREEMENTS
(Cost $9,703,000)			$	9,703,000

Total Investments (Investment Quality Bond Fund)
(Cost $161,398,588) - 125.22%			$	160,586,835
Liabilities in Excess of Other Assets - (25.22)%				(32,339,400)

TOTAL NET ASSETS - 100.00%			$	128,247,435



Large Cap Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 97.99%
Advertising - 2.16%
Omnicom Group, Inc.		47,875	$	4,185,233
Aerospace - 0.91%
Northrop Grumman Corp.		26,465		1,768,127
Auto Parts - 2.70%
BorgWarner, Inc.		26,669		1,512,399
Johnson Controls, Inc.		51,627		3,713,530

				5,225,929
Banking - 5.58%
City National Corp.		8,500		559,300
Fifth Third Bancorp.		97,495		3,835,453
Wells Fargo Company		184,978		6,427,986

				10,822,739
Biotechnology - 2.57%
Cephalon, Inc. * (a)		18,403		1,049,339
Genzyme Corp. *		48,002		3,179,173
Millennium Pharmaceuticals, Inc. *		69,500		754,770

				4,983,282
Broadcasting - 1.12%
News Corp.		78,300		1,490,049
Univision Communications, Inc., Class A *		19,555		675,821

				2,165,870
Building Materials & Construction - 2.08%
Masco Corp.		147,078		4,031,408
Business Services - 2.10%
Accenture, Ltd., Class A		51,970		1,541,430
H & R Block, Inc.		43,100		906,393
R.H. Donnelley Corp. * (a)		29,824		1,620,040

				4,067,863

The accompanying notes are an integral part of the financial statements. 298

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Large Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Cable and Television - 1.42%
DIRECTV Group, Inc. *	146,909	$	2,760,420
Computers & Business Equipment - 1.03%
Dell, Inc. *	88,400		1,993,420
Crude Petroleum & Natural Gas - 1.79%
EOG Resources, Inc.	27,300		1,769,586
Marathon Oil Corp.	20,369		1,700,811

			3,470,397
Drugs & Health Care - 3.36%
Wyeth	133,718		6,512,067
Electrical Utilities - 4.50%
American Electric Power Company, Inc.	45,443		1,657,761
Exelon Corp.	92,113		5,617,051
Northeast Utilities	23,600		538,316
Pepco Holdings, Inc.	35,481		900,862

			8,713,990
Energy - 1.11%
Sempra Energy	43,114		2,143,628
Financial Services - 15.27%
Citigroup, Inc.	178,634		8,815,588
Federal Home Loan Mortgage Corp.	47,045		2,992,062
JPMorgan Chase & Company	86,899		3,967,808
Mellon Financial Corp.	99,432		3,701,854
Morgan Stanley	107,313		7,060,122
PNC Financial Services Group, Inc.	43,304		3,065,490

			29,602,924
Food & Beverages - 0.96%
Sysco Corp.	59,500		1,867,705
Gas & Pipeline Utilities - 0.59%
NiSource, Inc.	54,198		1,147,372
Healthcare Products - 3.47%
Johnson & Johnson	70,608		4,565,513
Medtronic, Inc.	45,934		2,154,305

			6,719,818
Healthcare Services - 4.98%
Caremark Rx, Inc.	34,913		2,022,859
Medco Health Solutions, Inc. *	43,750		2,772,438
UnitedHealth Group, Inc.	93,343		4,849,169

			9,644,466
Hotels & Restaurants - 0.24%
Wyndham Worldwide Corp. *	16,003		468,242
Insurance - 4.52%
Allstate Corp.	35,600		2,062,664
American International Group, Inc.	71,868		4,586,616
Hartford Financial Services Group, Inc.	24,538		2,106,832

			8,756,112
Internet Service Provider - 0.65%
Salesforce.Com, Inc. * (a)	36,600		1,261,968

Large Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Internet Software - 1.42%
Symantec Corp. * (a)	148,188	$	2,762,224
Leisure Time - 1.61%
Carnival Corp.	74,299		3,113,128
Life Sciences - 0.89%
Waters Corp. *	40,545		1,729,244
Liquor - 0.81%
Anheuser-Busch Companies, Inc.	31,800		1,570,284
Manufacturing - 2.92%
Harley-Davidson, Inc.	32,800		1,919,128
Illinois Tool Works, Inc.	85,048		3,733,607

			5,652,735
Petroleum Services - 3.69%
Baker Hughes, Inc.	1,928		137,235
ENSCO International, Inc.	40,200		1,796,538
Exxon Mobil Corp.	29,869		2,021,235
GlobalSantaFe Corp.	39,100		1,924,502
Halliburton Company	38,800		1,265,656

			7,145,166
Pharmaceuticals - 3.65%
Allergan, Inc.	42,463		4,864,562
Bristol-Myers Squibb Company	101,299		2,203,253

			7,067,815
Railroads & Equipment - 1.85%
Burlington Northern Santa Fe Corp.	53,450		3,578,477
Real Estate - 0.30%
Realogy Corp., REIT *	26,904		575,735
Retail Grocery - 1.16%
The Kroger Company	94,598		2,252,378
Retail Trade - 2.47%
Costco Wholesale Corp.	56,290		2,633,809
Kohl's Corp. *	34,505		2,156,908

			4,790,717
Semiconductors - 3.58%
Analog Devices, Inc.	62,300		1,908,872
Intel Corp.	186,700		3,648,118
Xilinx, Inc.	60,091		1,374,281

			6,931,271
Software - 5.27%
Microsoft Corp.	288,089		7,401,007
Oracle Corp. *	180,285		2,821,460

			10,222,467
Telecommunications Equipment &
Services - 0.28%
Embarq Corp. *	11,666		550,052
Telephone - 3.49%
AT&T, Inc.	90,374		2,813,342
Sprint Nextel Corp.	233,127		3,944,509

			6,757,851

The accompanying notes are an integral part of the financial statements. 299

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Large Cap Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Trucking & Freight - 1.49%
Fedex Corp.		28,583	$	2,887,740

TOTAL COMMON STOCKS (Cost $180,265,843)			$	189,900,264


SHORT TERM INVESTMENTS - 3.46%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	6,601,703	$	6,601,703
United States Treasury Bill
zero coupon due 01/04/2007		100,000		98,231

TOTAL SHORT TERM INVESTMENTS
(Cost $6,699,934)			$	6,699,934


REPURCHASE AGREEMENTS - 1.71%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$3,326,365 on 09/01/2006,
collateralized by $3,375,000
Federal National Mortgage
Association, 5.125% due
12/15/2008 (valued at $3,396,094,
including interest) (c)	$	3,326,000	$	3,326,000

TOTAL REPURCHASE AGREEMENTS
(Cost $3,326,000)			$	3,326,000

Total Investments (Large Cap Fund)
(Cost $190,291,777) - 103.16%			$	199,926,198
Liabilities in Excess of Other Assets - (3.16)%				(6,123,136)

TOTAL NET ASSETS - 100.00%			$	193,803,062

Large Cap Value Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 99.75%
Aerospace - 1.76%
Lockheed Martin Corp.	6,520	$	538,552
Northrop Grumman Corp.	49,000		3,273,690
Raytheon Company	46,000		2,171,660

			5,983,902
Agriculture - 1.41%
Archer-Daniels-Midland Company	116,000		4,775,720
Apparel & Textiles - 0.30%
Jones Apparel Group, Inc.	33,000		1,032,900
Auto Parts - 0.73%
Autoliv, Inc.	44,000		2,486,880
Auto Services - 0.46%
AutoNation, Inc. *	80,000		1,554,400
Automobiles - 1.20%
General Motors Corp.	140,000		4,085,200
Banking - 1.64%
Bank of America Corp.	108,000		5,558,760

Large Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Business Services - 2.00%
Cadence Design Systems, Inc. *	51,000	$	837,930
Computer Sciences Corp. *	33,000		1,563,540
Convergys Corp. *	112,000		2,337,440
NCR Corp. *	11,454		398,485
Reynolds & Reynolds Company, Class A	43,000		1,649,480

			6,786,875
Cellular Communications - 1.22%
Motorola, Inc.	177,000		4,138,260
Chemicals - 0.41%
Albemarle Corp.	25,000		1,372,500
Computers & Business Equipment - 2.93%
Hewlett-Packard Company	161,000		5,886,160
International Business Machines Corp.	50,000		4,048,500

			9,934,660
Cosmetics & Toiletries - 0.46%
Procter & Gamble Company	25,000		1,547,500
Crude Petroleum & Natural Gas - 5.78%
Apache Corp.	30,000		1,958,400
Devon Energy Corp.	77,000		4,811,730
Marathon Oil Corp.	58,000		4,843,000
Occidental Petroleum Corp.	109,000		5,557,910
Sunoco, Inc.	34,000		2,444,940

			19,615,980
Domestic Oil - 0.98%
Frontier Oil Corp.	102,000		3,335,400
Electrical Utilities - 1.02%
Alliant Corp.	95,000		3,476,050
Electronics - 0.84%
Agilent Technologies, Inc. *	46,000		1,479,360
Synopsys, Inc. *	72,000		1,365,120

			2,844,480
Financial Services - 16.24%
Bear Stearns Companies, Inc.	31,000		4,040,850
CIT Group, Inc.	84,000		3,785,040
Citigroup, Inc.	327,000		16,137,450
Countrywide Financial Corp.	123,000		4,157,400
Goldman Sachs Group, Inc.	27,000		4,013,550
JPMorgan Chase & Company	256,000		11,688,960
Lehman Brothers Holdings, Inc.	74,000		4,721,940
Morgan Stanley	100,000		6,579,000

			55,124,190
Food & Beverages - 2.62%
Campbell Soup Company	96,000		3,606,720
Del Monte Foods Company	151,000		1,676,100
H.J. Heinz Company	86,000		3,598,240

			8,881,060
Gas & Pipeline Utilities - 0.80%
ONEOK, Inc.	71,000		2,717,170

The accompanying notes are an integral part of the financial statements. 300

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Large Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Services - 5.30%
Cardinal Health, Inc.	26,000	$	1,752,920
Caremark Rx, Inc.	63,000		3,650,220
Humana, Inc. *	45,000		2,741,850
IMS Health, Inc.	124,000		3,383,960
Laboratory Corp. of America Holdings *	25,000		1,710,500
McKesson Corp.	10,926		555,041
Medco Health Solutions, Inc. *	15,000		950,550
Wellpoint, Inc. *	42,000		3,251,220

			17,996,261
Holdings Companies/Conglomerates - 0.79%
General Electric Company	79,000		2,690,740
Industrial Machinery - 1.50%
AGCO Corp. *	135,000		3,354,750
Cummins, Inc.	15,000		1,722,300

			5,077,050
Insurance - 9.77%
Aetna, Inc.	106,000		3,950,620
Ambac Financial Group, Inc.	45,000		3,896,550
American Financial Group, Inc.	1,586		74,098
Chubb Corp.	91,000		4,564,560
Hartford Financial Services Group, Inc.	23,000		1,974,780
MGIC Investment Corp. (a)	63,000		3,645,810
PMI Group, Inc.	54,000		2,334,960
Principal Financial Group, Inc. (a)	40,000		2,129,600
Prudential Financial, Inc.	64,000		4,698,240
SAFECO Corp.	67,000		3,866,570
St. Paul Travelers Companies, Inc.	46,000		2,019,400

			33,155,188
International Oil - 7.34%
Anadarko Petroleum Corp.	96,000		4,503,360
ChevronTexaco Corp.	166,000		10,690,400
ConocoPhillips	97,000		6,152,710
Hess Corp.	78,000		3,570,840

			24,917,310
Internet Software - 0.32%
Checkfree Corp. *	30,000		1,074,000
Leisure Time - 1.67%
Walt Disney Company	191,000		5,663,150
Manufacturing - 2.31%
Honeywell International, Inc.	76,000		2,942,720
Illinois Tool Works, Inc.	48,000		2,107,200
Rockwell Automation, Inc.	8,282		466,939
SPX Corp. (a)	44,000		2,323,200

			7,840,059
Metal & Metal Products - 0.22%
Commercial Metals Company	35,000		755,650
Mining - 1.94%
Freeport-McMoran Copper & Gold, Inc.,
Class B (a)	64,000		3,725,440

Large Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Mining (continued)
Phelps Dodge Corp. (a)	32,000	$	2,864,000

			6,589,440
Office Furnishings & Supplies - 0.20%
Steelcase, Inc. Class A (a)	47,000		681,500
Paper - 0.41%
MeadWestvaco Corp. (a)	55,000		1,405,250
Petroleum Services - 8.82%
Exxon Mobil Corp.	346,000		23,413,820
Tesoro Petroleum Corp. (a)	24,000		1,550,640
Valero Energy Corp.	87,000		4,993,800

			29,958,260
Pharmaceuticals - 4.72%
AmerisourceBergen Corp.	14,450		638,112
Merck & Company, Inc.	165,000		6,690,750
Pfizer, Inc.	316,000		8,708,960

			16,037,822
Retail Grocery - 1.24%
Safeway, Inc.	136,000		4,206,480
Retail Trade - 1.83%
AnnTaylor Stores Corp. *	56,000		2,228,800
Circuit City Stores, Inc.	67,000		1,581,870
J.C. Penney Company, Inc.	31,000		1,954,240
Nordstrom, Inc.	12,159		454,138

			6,219,048
Semiconductors - 2.39%
Fairchild Semiconductor International, Inc. *	194,000		3,497,820
Intersil Corp., Class A	3,172		80,410
Micron Technology, Inc. *	232,000		4,008,960
Novellus Systems, Inc. * (a)	19,000		530,480

			8,117,670
Software - 0.49%
BMC Software, Inc. *	12,335		328,358
Compuware Corp. *	175,000		1,330,000

			1,658,358
Steel - 2.30%
Nucor Corp.	85,000		4,153,950
United States Steel Corp.	63,000		3,664,710

			7,818,660
Telecommunications Equipment &
Services - 0.78%
Avaya, Inc. *	203,000		2,121,350
Citizens Communications Company (a)	39,000		537,810

			2,659,160
Telephone - 0.75%
Qwest Communications International, Inc. * (a)	290,000		2,554,900
Tires & Rubber - 0.47%
Goodyear Tire & Rubber Company * (a)	118,000		1,604,800
Toys, Amusements & Sporting Goods - 1.09%
Hasbro, Inc.	108,000		2,192,400

The accompanying notes are an integral part of the financial statements. 301

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Large Cap Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Toys, Amusements & Sporting Goods
(continued)
Mattel, Inc.		80,000	$	1,507,200

				3,699,600
Travel Services - 0.30%
Sabre Holdings Corp.		47,000		1,030,240

TOTAL COMMON STOCKS (Cost $320,761,258)			$	338,662,483


SHORT TERM INVESTMENTS - 4.39%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	14,896,485	$	14,896,485

TOTAL SHORT TERM INVESTMENTS
(Cost $14,896,485)			$	14,896,485

Total Investments (Large Cap Value Fund)
(Cost $335,657,743) - 104.14%			$	353,558,968
Liabilities in Excess of Other Assets - (4.14)%				(14,045,199)

TOTAL NET ASSETS - 100.00%			$	339,513,769



Mid Cap Core Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 79.47%
Advertising - 1.20%
Omnicom Group, Inc.		41,795	$	3,653,719
Aerospace - 1.32%
Goodrich Corp.		103,730		4,040,284
Auto Parts - 1.18%
Genuine Parts Company		87,330		3,609,349
Banking - 1.65%
Marshall & Ilsley Corp.		72,520		3,381,607
SVB Financial Group * (a)		36,578		1,652,960

				5,034,567
Biotechnology - 1.08%
Techne Corp. *		64,764		3,296,488
Business Services - 6.24%
Cadence Design Systems, Inc. *		302,123		4,963,881
H & R Block, Inc.		197,815		4,160,049
Pitney Bowes, Inc.		84,083		3,665,178
Rentokil Initial PLC		1,040,143		2,972,866
The ServiceMaster Company		287,163		3,299,503

				19,061,477
Cable and Television - 1.48%
E.W. Scripps Company, Class A		99,468		4,522,810
Chemicals - 3.96%
Rohm & Haas Company		99,350		4,381,335
Sigma-Aldrich Corp. (a)		106,226		7,715,194

				12,096,529

Mid Cap Core Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Computers & Business Equipment - 1.82%
Xerox Corp. *	375,146	$	5,555,912
Construction Materials - 1.38%
Sherwin-Williams Company	81,816		4,224,978
Containers & Glass - 0.98%
Pactiv Corp. *	112,445		3,005,655
Cosmetics & Toiletries - 6.21%
Avon Products, Inc.	194,229		5,576,314
Estee Lauder Companies, Inc., Class A	181,781		6,700,448
International Flavors & Fragrances, Inc.	168,278		6,692,416

			18,969,178
Drugs & Health Care - 0.49%
ImClone Systems, Inc. * (a)	50,037		1,496,106
Electrical Utilities - 1.53%
Wisconsin Energy Corp.	108,687		4,673,541
Food & Beverages - 2.74%
Cadbury Schweppes PLC	786,949		8,368,087
Funeral Services - 1.96%
Service Corp. International	713,201		5,990,888
Gas & Pipeline Utilities - 1.44%
UGI Corp.	177,506		4,402,149
Healthcare Products - 0.94%
Kinetic Concepts, Inc. *	91,187		2,881,509
Holdings Companies/Conglomerates - 1.16%
Groupe Bruxelles Lambert SA	33,734		3,536,488
Industrial Machinery - 5.89%
Atlas Copco AB, Series A	58,600		1,508,495
Dover Corp.	93,037		4,523,459
FMC Technologies, Inc. *	49,776		2,927,824
ITT Corp.	30,759		1,505,653
Pall Corp.	151,744		4,130,472
Parker-Hannifin Corp.	28,256		2,092,357
W.W. Grainger, Inc.	19,795		1,322,306

			18,010,566
Insurance - 5.19%
Axis Capital Holdings, Ltd.	113,506		3,681,000
Genworth Financial, Inc.	114,615		3,946,194
Marsh & McLennan Companies, Inc.	120,697		3,157,434
XL Capital, Ltd., Class A (a)	77,382		5,079,354

			15,863,982
International Oil - 0.76%
Noble Corp.	35,512		2,322,130
Internet Software - 1.40%
Juniper Networks, Inc. *	95,590		1,402,305
McAfee, Inc. *	126,187		2,872,016

			4,274,321
Life Sciences - 2.68%
PerkinElmer, Inc.	188,422		3,472,618

The accompanying notes are an integral part of the financial statements. 302

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Core Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Life Sciences (continued)
Waters Corp. *	110,436 $		4,710,095

			8,182,713
Liquor - 1.31%
Heineken NV	86,779		4,019,746
Manufacturing - 0.97%
Mettler-Toledo International, Inc. *	48,704		2,968,022
Medical-Hospitals - 1.13%
Health Management Associates, Inc., Class A	165,727		3,465,352
Paper - 0.96%
MeadWestvaco Corp.	114,600		2,928,030
Petroleum Services - 1.82%
Japan Petroleum Exploration Company, Ltd. *	31,100		2,040,561
Smith International, Inc.	84,101		3,529,719

			5,570,280
Pharmaceuticals - 2.36%
Forest Laboratories, Inc. *	82,618		4,129,248
Hospira, Inc. *	83,986		3,076,407

			7,205,655
Publishing - 1.04%
Mcclatchy Company, Class A	78,699		3,192,819
Retail Grocery - 2.31%
SUPERVALU, Inc.	108,844		3,108,585
The Kroger Company	166,556		3,965,698

			7,074,283
Retail Trade - 3.16%
99 Cents Only Stores * (a)	190,446		2,163,467
Gap, Inc.	233,124		3,918,814
RadioShack Corp. (a)	198,949		3,593,019

			9,675,300
Sanitary Services - 1.39%
Republic Services, Inc.	109,937		4,263,357
Semiconductors - 2.24%
Analog Devices, Inc.	93,142		2,853,871
Linear Technology Corp.	117,674		4,002,093

			6,855,964
Software - 1.43%
Business Objects, SADR * (a)	156,946		4,372,516
Steel - 1.16%
Tenaris SA, ADR	96,500		3,542,515
Telecommunications Equipment &
Services - 2.48%
ADTRAN, Inc.	151,709		3,773,003
SK Telecom Company, Ltd., ADR	173,308		3,795,445

			7,568,448
Travel Services - 1.03%
Sabre Holdings Corp.	143,512		3,145,783

TOTAL COMMON STOCKS (Cost $230,199,317)		$	242,921,496

Mid Cap Core Fund (continued)
		Shares or
		Principal
		Amount		Value


PREFERRED STOCKS - 1.60%
Household Products - 1.60%
Henkel KGaA-Vorzug, Non-Voting		38,272	$	4,880,768

TOTAL PREFERRED STOCKS (Cost $4,325,140)			$	4,880,768


SHORT TERM INVESTMENTS - 6.50%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	19,867,086	$	19,867,086

TOTAL SHORT TERM INVESTMENTS
(Cost $19,867,086)			$	19,867,086


REPURCHASE AGREEMENTS - 17.38%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
4.95% to be repurchased at
$53,139,305 on 9/1/2006,
collateralized by $16,705,000
Federal Home Loan Bank, 4.00%
due 10/29/2009 (valued at
$16,391,781, including interest)
and $38,530,000 Federal Home
Loan Bank, 4.16% due 02/01/2010
(valued at $37,807,563, including
interest) (c)	$	53,132,000	$	53,132,000

TOTAL REPURCHASE AGREEMENTS
(Cost $53,132,000)			$	53,132,000

Total Investments (Mid Cap Core Fund)
(Cost $307,523,543) - 104.95%			$	320,801,350
Liabilities in Excess of Other Assets - (4.95)%				(15,130,255)

TOTAL NET ASSETS - 100.00%			$	305,671,095



Mid Cap Index Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 93.17%
Aerospace - 0.29%
Alliant Techsystems, Inc. *		5,281	$	403,944
Sequa Corp., Class A *		1,012		92,901

				496,845
Air Travel - 0.36%
Airtran Holdings, Inc. * (a)		13,607		155,800
Alaska Air Group, Inc. *		5,888		222,979
JetBlue Airways Corp. * (a)		23,177		237,332

				616,111
Apparel & Textiles - 0.77%
Mohawk Industries, Inc. * (a)		8,017		568,245
Polo Ralph Lauren Corp., Class A		9,123		538,166
Timberland Company, Class A *		7,951		225,888

				1,332,299
Auto Parts - 1.11%
ArvinMeritor, Inc. (a)		10,564		156,875
BorgWarner, Inc.		8,581		486,629

The accompanying notes are an integral part of the financial statements. 303

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Auto Parts (continued)
Federal Signal Corp.	7,234	$	112,923
Gentex Corp. (a)	23,051		333,778
Lear Corp. (a)	10,095		205,332
Modine Manufacturing Company	5,033		117,219
O'Reilly Automotive, Inc. *	16,970		503,839

			1,916,595
Auto Services - 0.34%
ADESA, Inc.	13,472		297,597
Copart, Inc. *	10,433		292,854

			590,451
Banking - 4.58%
Associated Banc-Corp.	19,825		625,280
Astoria Financial Corp.	12,707		390,105
Bank of Hawaii Corp.	7,624		372,204
Cathay General Bancorp, Inc. (a)	7,720		287,879
City National Corp. (a)	6,222		409,408
Colonial Bancgroup, Inc.	23,176		567,580
Cullen Frost Bankers, Inc.	7,187		423,745
First Niagara Financial Group, Inc.	16,661		249,249
FirstMerit Corp.	11,959		275,177
Greater Bay Bancorp	7,549		214,920
Investors Financial Services Corp. (a)	9,858		457,017
Mercantile Bankshares Corp.	18,472		682,171
New York Community Bancorp, Inc. (a)	39,349		645,717
SVB Financial Group *	5,327		240,727
TCF Financial Corp.	16,807		438,158
Texas Regional Bancshares, Inc., Class A	6,815		260,810
Washington Federal, Inc.	13,076		290,549
Webster Financial Corp.	7,913		373,810
Westamerica Bancorp (a)	4,712		225,375
Wilmington Trust Corp.	10,226		450,455

			7,880,336
Biotechnology - 1.52%
Affymetrix, Inc. * (a)	10,113		215,508
Cephalon, Inc. * (a)	9,106		519,224
Charles River Laboratories International, Inc. *	10,813		439,440
Invitrogen Corp. *	7,977		485,401
Martek Biosciences Corp. * (a)	4,818		144,877
Millennium Pharmaceuticals, Inc. *	47,193		512,516
Techne Corp. *	5,902		300,412

			2,617,378
Broadcasting - 0.28%
Belo Corp., Class A	13,522		220,409
Emmis Communications Corp., Class A *	5,575		68,182
Entercom Communications Corp. (a)	4,991		126,821
Westwood One, Inc.	9,600		70,368

			485,780
Building Materials & Construction - 0.27%
Dycom Industries, Inc. * (a)	6,044		122,391

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Building Materials & Construction
(continued)
RPM International, Inc.	17,773	$	334,310

			456,701
Business Services - 5.47%
Acxiom Corp.	11,571		281,060
Alliance Data Systems Corp. *	10,105		510,707
Banta Corp.	3,599		169,333
Brinks Company	7,248		412,918
Cadence Design Systems, Inc. *	42,352		695,843
Catalina Marketing Corp.	5,675		162,589
Cendant Corp.	149,900		289,307
Ceridian Corp. *	20,838		497,403
ChoicePoint, Inc. *	12,904		466,480
Corporate Executive Board Company	6,000		525,840
CSG Systems International, Inc. *	7,152		192,532
Deluxe Corp. (a)	7,691		137,823
DST Systems, Inc. *	9,196		542,840
Dun & Bradstreet Corp. *	9,422		662,461
Fair Isaac Corp.	9,785		342,573
Gartner Group, Inc., Class A * (a)	8,725		136,023
Harte-Hanks, Inc.	8,360		221,540
Jacobs Engineering Group, Inc. *	8,786		765,173
Kelly Services, Inc., Class A	2,908		79,417
Korn/Ferry International * (a)	6,353		129,728
Manpower, Inc.	13,141		776,764
MPS Group, Inc. *	15,467		217,466
Navigant Consulting Company * (a)	7,841		154,389
Reynolds & Reynolds Company, Class A	7,834		300,512
Rollins, Inc.	4,413		93,732
Sotheby's Holdings, Inc., Class A	7,068		196,490
SRA International, Inc., Class A * (a)	5,684		159,209
The BISYS Group, Inc. *	18,056		185,796
Wind River Systems, Inc. *	11,323		115,155

			9,421,103
Cellular Communications - 0.49%
RF Micro Devices, Inc. * (a)	28,526		188,842
Telephone & Data Systems, Inc.	15,409		653,496

			842,338
Chemicals - 2.68%
Airgas, Inc.	10,093		361,531
Albemarle Corp.	5,817		319,353
Cabot Corp. (a)	9,508		315,951
Cabot Microelectronics Corp. * (a)	3,629		114,096
Chemtura Corp. (a)	36,022		313,031
Cytec Industries, Inc.	6,077		324,208
Ferro Corp.	6,373		108,851
FMC Corp.	5,863		358,347
Lubrizol Corp.	10,250		445,772
Lyondell Chemical Company	30,773		799,483
Minerals Technologies, Inc.	2,981		154,982
Olin Corp.	10,840		162,925

The accompanying notes are an integral part of the financial statements. 304

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Chemicals (continued)
Sensient Technologies Corp.	6,948	$	139,794
The Scotts Company, Class A (a)	6,761		290,182
Valspar Corp.	15,281		406,475

			4,614,981
Coal - 1.42%
Arch Coal, Inc. (a)	21,438		702,095
Peabody Energy Corp.	39,688		1,749,050

			2,451,145
Colleges & Universities - 0.57%
Career Education Corp. *	14,640		280,356
Corinthian Colleges, Inc. *	12,914		156,517
DeVry, Inc. * (a)	8,802		196,725
ITT Educational Services, Inc. *	5,378		355,432

			989,030
Computers & Business Equipment - 3.04%
3Com Corp. *	58,676		259,935
Avocent Corp. *	7,343		221,979
CDW Corp.	9,285		541,315
Cognizant Technology Solutions Corp.,
Class A *	21,048		1,471,466
Diebold, Inc. (a)	10,098		423,207
Henry, Jack & Associates, Inc.	11,393		218,290
Ingram Micro, Inc., Class A *	17,770		319,860
National Instruments Corp.	8,356		231,962
Palm, Inc. * (a)	13,739		200,040
Plexus Corp. *	6,858		135,926
Sybase, Inc. *	13,492		311,260
Tech Data Corp. *	8,327		290,529
Western Digital Corp. *	33,086		605,474

			5,231,243
Construction Materials - 0.64%
Florida Rock Industries, Inc. (a)	7,099		264,012
Granite Construction, Inc.	4,955		265,835
Martin Marietta Materials, Inc.	6,855		564,578

			1,094,425
Containers & Glass - 0.55%
Longview Fibre Company	11,720		244,245
Packaging Corp. of America	9,026		208,862
Sonoco Products Company	14,848		497,111

			950,218
Crude Petroleum & Natural Gas - 2.33%
Helmerich & Payne, Inc.	15,721		385,636
Newfield Exploration Company *	19,281		833,710
Patterson-UTI Energy, Inc.	25,710		704,454
Pioneer Natural Resources Company	19,384		808,507
Plains Exploration & Production Company *	11,798		519,230
Pogo Producing Company	8,690		385,923
Quicksilver Resources, Inc. * (a)	10,150		381,843

			4,019,303

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Domestic Oil - 1.25%
Denbury Resources, Inc. *	17,848	$	553,466
Forest Oil Corp. * (a)	8,285		280,613
Noble Energy, Inc.	26,557		1,312,447

			2,146,526
Drugs & Health Care - 0.42%
Hillenbrand Industries, Inc.	9,198		524,930
Perrigo Company	12,548		202,525

			727,455
Educational Services - 0.21%
Laureate Education, Inc. *	7,692		369,370
Electrical Equipment - 0.64%
AMETEK, Inc.	10,627		455,686
Hubbell, Inc., Class B (a)	9,114		423,801
Varian, Inc. *	4,632		216,222

			1,095,709
Electrical Utilities - 4.43%
Alliant Corp.	17,621		644,752
Black Hills Corp. (a)	4,984		173,493
DPL, Inc. (a)	17,113		475,742
Duquesne Light Holdings, Inc. (a)	11,748		231,318
Great Plains Energy, Inc. (a)	11,914		363,615
Hawaiian Electric Industries, Inc. (a)	12,161		333,455
IDACORP, Inc.	6,415		246,464
Northeast Utilities	23,022		525,132
NSTAR	16,012		527,275
OGE Energy Corp. (a)	13,608		506,762
Pepco Holdings, Inc.	28,539		724,605
PNM Resources, Inc.	10,317		295,788
Puget Energy, Inc.	17,395		393,649
Quanta Services, Inc. * (a)	17,767		315,009
Sierra Pacific Resources *	33,050		487,488
Westar Energy, Inc.	13,062		318,582
Wisconsin Energy Corp.	17,537		754,091
WPS Resources Corp.	6,042		310,438

			7,627,658
Electronics - 2.50%
Amphenol Corp., Class A	13,431		771,880
Arrow Electronics, Inc. *	18,264		509,566
Avnet, Inc. *	21,957		429,479
DRS Technologies, Inc. (a)	5,986		247,641
Imation Corp.	5,229		207,225
Kemet Corp. *	13,008		107,056
Mentor Graphics Corp. *	12,035		174,507
Synopsys, Inc. *	21,514		407,905
Teleflex, Inc.	6,035		336,813
Thomas & Betts Corp. *	8,141		367,648
Vishay Intertechnology, Inc. * (a)	27,648		387,348
Zebra Technologies Corp., Class A *	10,609		359,009

			4,306,077

The accompanying notes are an integral part of the financial statements. 305

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Energy - 1.76%
Energy East Corp. (a)	22,139	$	536,871
Hanover Compressor Company * (a)	13,806		259,829
MDU Resources Group, Inc.	26,409		647,020
SCANA Corp.	17,312		715,851
Southwestern Energy Company *	25,133		863,319

			3,022,890
Financial Services - 2.92%
A.G. Edwards, Inc.	11,332		598,556
AmeriCredit Corp. *	19,553		459,300
Eaton Vance Corp.	19,178		509,943
Fidelity National Information Services, Inc.	14,139		518,053
IndyMac Bancorp, Inc.	9,823		384,079
Jefferies Group, Inc.	15,104		376,392
Leucadia National Corp. (a)	24,631		633,755
Moneygram International, Inc.	12,702		398,843
Raymond James Financial, Inc.	13,358		370,284
SEI Investments Company	9,449		482,277
Waddell & Reed Financial, Inc., Class A	12,705		295,010

			5,026,492
Food & Beverages - 1.01%
Bob Evans Farms, Inc. (a)	5,375		152,328
Hormel Foods Corp.	10,953		401,427
PepsiAmericas, Inc.	8,985		206,565
Smithfield Foods, Inc. *	14,831		445,375
The J.M. Smucker Company	8,726		424,345
Tootsie Roll Industries, Inc. (a)	3,849		111,660

			1,741,700
Forest Products - 0.26%
Rayonier, Inc.	11,472		453,144
Furniture & Fixtures - 0.08%
Furniture Brands International, Inc. (a)	7,343		140,618
Gas & Pipeline Utilities - 2.39%
AGL Resources, Inc.	11,683		425,144
Aquila, Inc. *	56,043		256,677
Equitable Resources, Inc.	18,076		666,281
National Fuel Gas Company (a)	12,589		480,522
ONEOK, Inc.	16,480		630,690
Questar Corp.	12,826		1,109,962
Vectren Corp.	11,421		314,763
WGL Holdings, Inc.	7,310		227,122

			4,111,161
Healthcare Products - 3.16%
Advanced Medical Optics, Inc. * (a)	10,296		495,752
Beckman Coulter, Inc.	9,464		518,343
Cytyc Corp. *	17,141		409,499
DENTSPLY International, Inc.	23,671		771,201
Edwards Lifesciences Corp. *	8,837		412,600
Gen-Probe, Inc. *	7,734		375,950
Henry Schein, Inc. *	13,240		660,279
Intuitive Surgical, Inc. *	5,481		517,406

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Products (continued)
STERIS Corp.	9,868	$	234,661
Varian Medical Systems, Inc. *	19,697		1,049,850

			5,445,541
Healthcare Services - 1.63%
Apria Healthcare Group, Inc. * (a)	6,357		129,619
Covance, Inc. *	9,528		599,026
Health Net, Inc. *	17,289		722,853
Lincare Holdings, Inc. *	14,335		530,825
Omnicare, Inc. (a)	18,161		822,875

			2,805,198
Homebuilders - 0.79%
Beazer Homes USA, Inc. (a)	6,054		243,976
Hovnanian Enterprises, Inc., Class A * (a)	5,367		142,172
M.D.C. Holdings, Inc. (a)	4,917		210,398
Ryland Group, Inc. (a)	6,836		291,692
Toll Brothers, Inc. * (a)	17,526		463,037

			1,351,275
Hotels & Restaurants - 1.14%
Applebee's International, Inc. (a)	11,135		231,051
Boyd Gaming Corp. (a)	6,577		237,824
Brinker International, Inc.	12,714		489,108
CBRL Group, Inc. (a)	4,635		175,388
OSI Restaurant Partners, Inc. (a)	9,882		306,046
Ruby Tuesday, Inc. (a)	8,849		228,481
The Cheesecake Factory, Inc. * (a)	11,856		295,096

			1,962,994
Household Products - 0.68%
Blyth, Inc.	3,943		84,696
Church & Dwight, Inc. (a)	9,692		373,142
Energizer Holdings, Inc. *	8,584		573,926
Tupperware Brands Corp.	8,091		145,719

			1,177,483
Industrial Machinery - 2.37%
AGCO Corp. *	13,573		337,289
Donaldson Company, Inc.	10,177		339,708
Flowserve Corp. *	8,428		431,008
FMC Technologies, Inc. *	10,249		602,846
Graco, Inc.	10,258		387,752
Grant Prideco, Inc. *	19,628		815,151
Joy Global, Inc.	18,531		806,840
Kennametal, Inc.	5,935		313,012
Tecumseh Products Company, Class A * (a)	2,770		41,135

			4,074,741
Industrials - 0.86%
Crane Company	7,562		302,329
Fastenal Company (a)	18,569		681,111
Harsco Corp.	6,289		500,353

			1,483,793
Insurance - 5.68%
American Financial Group, Inc.	7,065		330,077

The accompanying notes are an integral part of the financial statements. 306

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
Amerus Group Company	5,818	$	394,460
Arthur J. Gallagher & Company (a)	14,497		388,520
Brown & Brown, Inc.	16,735		501,046
Everest Re Group, Ltd.	9,732		914,613
Fidelity National Financial, Inc.	26,200		1,054,026
First American Corp.	14,489		588,543
Hanover Insurance Group, Inc.	7,614		338,823
HCC Insurance Holdings, Inc.	16,671		541,641
Horace Mann Educators Corp.	6,446		118,349
Mercury General Corp. (a)	5,324		267,638
Ohio Casualty Corp.	9,532		247,355
Old Republic International Corp.	34,457		720,151
PMI Group, Inc.	13,401		579,459
Protective Life Corp.	10,477		482,256
Radian Group, Inc. (a)	12,354		739,758
Stancorp Financial Group, Inc.	8,200		381,874
Unitrin, Inc.	6,786		297,770
W.R. Berkley Corp.	25,377		888,195

			9,774,554
Internet Software - 0.96%
Checkfree Corp. *	13,700		490,460
F5 Networks, Inc. *	6,079		304,497
McAfee, Inc. *	23,915		544,305
RSA Security, Inc. *	11,316		315,151

			1,654,413
Leisure Time - 0.39%
Callaway Golf Company	9,757		130,841
International Speedway Corp., Class A	5,276		255,358
Scientific Games Corp., Class A * (a)	9,838		285,991

			672,190
Life Sciences - 0.34%
Pharmaceutical Product Development, Inc.	15,211		579,843
Manufacturing - 2.10%
Cameron International Corp. *	17,315		829,562
Carlisle Companies, Inc.	4,609		394,069
Lancaster Colony Corp. (a)	3,684		162,612
Mine Safety Appliances Company (a)	3,945		139,850
Nordson Corp.	5,059		202,562
Pentair, Inc.	15,242		455,736
Roper Industries, Inc.	13,020		603,868
SPX Corp.	8,961		473,141
Trinity Industries, Inc.	10,622		354,350

			3,615,750
Medical-Hospitals - 1.36%
Community Health Systems, Inc. *	14,736		571,167
Lifepoint Hospitals, Inc. *	8,618		293,443
Triad Hospitals, Inc. *	13,124		578,243
Universal Health Services, Inc., Class B	8,122		459,868
VCA Antech, Inc. *	12,456		441,192

			2,343,913

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Metal & Metal Products - 1.32%
Commercial Metals Company	18,038	$	389,440
Precision Castparts Corp.	20,097		1,174,469
Reliance Steel & Aluminum Company	9,481		310,692
Timken Company	12,622		404,409

			2,279,010
Mining - 0.20%
Lincoln Electric Holding, Inc.	6,361		350,046
Mobile Homes - 0.13%
Thor Industries, Inc. (a)	5,184		218,661
Newspapers - 0.49%
Lee Enterprises, Inc. (a)	6,857		169,779
Washington Post Company, Class B	878		674,102

			843,881
Office Furnishings & Supplies - 0.34%
Herman Miller, Inc.	9,945		280,847
HNI Corp. (a)	7,767		309,903

			590,750
Paper - 0.30%
Bowater, Inc. (a)	8,384		190,568
P.H. Glatfelter Company	6,664		95,629
Potlatch Corp. (a)	5,791		221,853

			508,050
Petroleum Services - 1.95%
ENSCO International, Inc.	23,053		1,030,239
Pride International, Inc. *	24,276		629,477
Smith International, Inc.	30,052		1,261,282
Tidewater, Inc.	9,041		430,442

			3,351,440
Pharmaceuticals - 1.32%
Medicis Pharmaceutical Corp., Class A (a)	8,160		239,007
Par Pharmaceutical Companies, Inc. * (a)	5,254		94,309
PDL BioPharma, Inc. * (a)	17,160		338,052
Sepracor, Inc. * (a)	16,303		766,404
Valeant Pharmaceuticals International (a)	13,912		273,510
Vertex Pharmaceuticals, Inc. *	16,516		568,976

			2,280,258
Publishing - 0.49%
American Greetings Corp., Class A (a)	8,631		211,632
Media General, Inc., Class A	3,607		141,827
Readers Digest Association, Inc., Class A (a)	14,447		185,066
Scholastic Corp. *	5,398		162,264
Valassis Communications, Inc. *	7,164		141,274

			842,063
Railroads & Equipment - 0.16%
GATX Corp.	7,631		283,186
Real Estate - 3.85%
AMB Property Corp., REIT	13,193		736,565
Developers Diversified Realty Corp., REIT	16,444		889,620
Highwoods Properties, Inc., REIT	8,116		306,298

The accompanying notes are an integral part of the financial statements. 307

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Real Estate (continued)
Hospitality Properties Trust, REIT	10,787	$	499,654
Liberty Property Trust, REIT	13,373		640,166
Mack-California Realty Corp., REIT	9,342		496,527
New Plan Realty Trust, Inc., REIT	15,682		432,666
Regency Centers Corp., REIT	10,281		691,603
The Macerich Company, REIT	10,762		803,491
United Dominion Realty Trust, Inc., REIT (a)	20,131		614,197
Weingarten Realty Investors, REIT	12,092		512,943

			6,623,730
Retail Grocery - 0.08%
Ruddick Corp.	5,191		133,876
Retail Trade - 6.52%
99 Cents Only Stores * (a)	7,197		81,758
Abercrombie & Fitch Company, Class A	13,192		851,280
Advance Auto Parts, Inc.	16,199		487,914
Aeropostale, Inc. *	8,173		207,594
American Eagle Outfitters, Inc.	19,758		763,252
AnnTaylor Stores Corp. *	10,999		437,760
Barnes & Noble, Inc.	7,925		288,153
BJ's Wholesale Club, Inc. *	9,991		263,263
Borders Group, Inc.	9,620		184,031
CarMax, Inc. *	15,749		593,580
Chico's FAS, Inc. *	27,286		503,154
Claire's Stores, Inc.	14,699		401,724
Coldwater Creek, Inc. * (a)	9,012		247,560
Dollar Tree Stores, Inc. *	15,675		451,126
Foot Locker, Inc.	23,287		561,217
GameStop Corp., Class A * (a)	8,892		388,403
Michael's Stores, Inc.	19,809		852,777
MSC Industrial Direct Company, Inc., Class A	8,169		321,532
Pacific Sunwear of California, Inc. *	10,800		144,288
Payless ShoeSource, Inc. *	10,099		236,922
PETsMART, Inc.	21,003		527,175
Pier 1 Imports, Inc. (a)	13,055		83,421
Regis Corp. (a)	6,845		251,143
Rent-A-Center, Inc. *	10,409		282,084
Ross Stores, Inc.	21,419		524,551
Saks, Inc. *	20,524		296,161
United Rentals, Inc. * (a)	10,228		221,538
Urban Outfitters, Inc. * (a)	16,599		260,438
Williams-Sonoma, Inc. (a)	17,267		508,686

			11,222,485
Sanitary Services - 0.93%
Aqua America, Inc. (a)	19,416		459,965
Republic Services, Inc.	18,039		699,553
Stericycle, Inc. * (a)	6,635		442,488

			1,602,006
Semiconductors - 3.69%
Atmel Corp. *	64,221		370,555
Cree, Inc. * (a)	11,552		215,098
Cypress Semiconductor Corp. * (a)	20,939		327,486

Mid Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Semiconductors (continued)
Fairchild Semiconductor International, Inc. *	18,229	$	328,669
Integrated Device Technology, Inc. *	30,021		517,262
International Rectifier Corp. * (a)	10,725		378,592
Intersil Corp., Class A	21,248		538,637
Lam Research Corp. *	21,083		902,142
Lattice Semiconductor Corp. *	17,108		125,231
MEMC Electronic Materials, Inc. *	24,760		957,717
Micrel, Inc. *	9,515		95,340
Microchip Technology, Inc.	32,139		1,097,868
Semtech Corp. *	10,920		142,724
Silicon Laboratories, Inc. *	6,917		243,963
Triquint Semiconductor, Inc. *	20,940		103,234

			6,344,518
Software - 0.63%
Activision, Inc. *	41,658		537,388
Advent Software, Inc. * (a)	2,355		77,126
Macrovision Corp. *	7,752		180,467
McDATA Corp., Class A * (a)	23,841		102,278
Transaction Systems Architects, Inc., Class A *	5,606		185,951

			1,083,210
Steel - 0.32%
Steel Dynamics, Inc.	6,495		342,871
Worthington Industries, Inc. (a)	10,757		205,566

			548,437
Telecommunications Equipment &
Services - 0.76%
ADTRAN, Inc.	10,242		254,719
Commscope, Inc. * (a)	8,697		254,039
Newport Corp. *	6,091		107,384
Plantronics, Inc. (a)	7,129		127,752
Polycom, Inc. *	13,079		311,149
Powerwave Technologies, Inc. * (a)	16,810		127,420
UTStarcom, Inc. * (a)	15,756		129,357

			1,311,820
Telephone - 0.62%
Cincinnati Bell, Inc. *	37,017		186,936
Harris Corp.	20,129		884,066

			1,071,002
Tires & Rubber - 0.04%
Bandag, Inc. (a)	1,754		66,757
Tobacco - 0.09%
Universal Corp.	3,856		148,957
Transportation - 1.98%
Alexander & Baldwin, Inc. (a)	6,632		290,880
C.H. Robinson Worldwide, Inc.	26,041		1,193,199
Con-way, Inc.	7,193		344,185
Expeditors International of Washington, Inc.	31,986		1,275,282
Overseas Shipholding Group, Inc. (a)	4,445		296,481

			3,400,027

The accompanying notes are an integral part of the financial statements. 308

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Trucking & Freight - 0.92%
J.B. Hunt Transport Services, Inc. (a)		18,518	$	363,879
Oshkosh Truck Corp.		11,037		570,613
Swift Transportation, Inc. *		8,061		186,934
Werner Enterprises, Inc. (a)		7,645		141,662
YRC Worldwide, Inc. * (a)		8,613		316,786

				1,579,874


TOTAL COMMON STOCKS (Cost $162,502,045)			$	160,400,814


SHORT TERM INVESTMENTS - 24.30%
Federal Home Loan Bank Discount Notes
zero coupon due 10/04/2006	$	2,000,000	$	1,990,485
Federal Home Loan Mortgage Corp. Discount Notes
zero coupon due 10/10/2006		2,000,000		1,988,853
Federal National Mortgage Association
Discount Notes
zero coupon due 10/04/2006 to
10/16/2006		5,000,000		4,973,054
Rabobank USA Finance Corp.
5.27% due 09/01/2006		1,530,000		1,530,000
State Street Navigator Securities Lending
Prime Portfolio (c)		30,804,574		30,804,574
United States Treasury Bills
zero coupon due 10/19/2006		550,000		546,359

TOTAL SHORT TERM INVESTMENTS
(Cost $41,833,325)			$	41,833,325


REPURCHASE AGREEMENTS - 0.32%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
4.96% to be repurchased at
$541,075 on 09/01/2006,
collateralized by $590,000 United
States Treasury Bonds, 4.50% due
02/15/2036 (valued at $553,863,
including interest) (c)	$	541,000	$	541,000

TOTAL REPURCHASE AGREEMENTS
(Cost $541,000)			$	541,000

Total Investments (Mid Cap Index Fund)
(Cost $204,876,370) - 117.79%			$	202,775,139
Liabilities in Excess of Other Assets - (17.79)%				(30,619,646)

TOTAL NET ASSETS - 100.00%			$	172,155,493



Mid Cap Stock Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 96.27%
Advertising - 0.80%
Focus Media Holding Ltd., ADR * (a)		40,800	$	2,407,200
Aerospace - 2.66%
Alliant Techsystems, Inc. * (a)		72,415		5,539,023

Mid Cap Stock Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
Aerospace (continued)
Rockwell Collins, Inc.	47,092 $	2,469,034

		8,008,057
Air Travel - 2.33%
Gol Linhas Aereas Inteligentes SA, ADR (a)	113,740	3,970,663
Southwest Airlines Company	176,025	3,048,753

		7,019,416
Auto Parts - 0.97%
LKQ Corp. *	141,000	2,928,570
Biotechnology - 2.37%
Cephalon, Inc. * (a)	58,777	3,351,465
ICOS Corp. * (a)	78,812	1,937,199
Millennium Pharmaceuticals, Inc. *	170,583	1,852,531

		7,141,195
Broadcasting - 0.72%
Sirius Satellite Radio, Inc. * (a)	531,075	2,172,097
Business Services - 7.07%
Corporate Executive Board Company	27,615	2,420,179
DST Systems, Inc. * (a)	49,000	2,892,470
Equifax, Inc.	125,100	3,976,929
Fluor Corp.	31,800	2,748,156
Foster Wheeler, Ltd. * (a)	58,000	2,521,260
Resources Connection, Inc. *	186,700	4,555,480
URS Corp. *	52,900	2,145,095

		21,259,569
Cable and Television - 0.98%
Gemstar-TV Guide International, Inc. *	918,500	2,948,385
Cellular Communications - 3.13%
American Tower Corp., Class A *	105,749	3,792,159
Crown Castle International Corp. * (a)	76,220	2,618,919
Leap Wireless International, Inc. *	64,800	2,997,648

		9,408,726
Chemicals - 2.24%
Kingboard Chemical Holdings, Ltd.	984,000	3,175,847
Wacker Chemie AG *	29,681	3,578,618

		6,754,465
Commercial Services - 0.85%
Live Nation, Inc. *	121,200	2,542,776
Computers & Business Equipment - 3.70%
Cognizant Technology Solutions Corp.,
Class A *	43,367	3,031,787
Network Appliance, Inc. * (a)	237,000	8,114,880

		11,146,667
Containers & Glass - 2.51%
Ball Corp.	91,500	3,691,110
Jarden Corp. * (a)	132,068	3,872,234

		7,563,344
Cosmetics & Toiletries - 1.95%
Alberto-Culver Company, Class B	58,100	2,860,263

The accompanying notes are an integral part of the financial statements. 309

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Stock Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
Cosmetics & Toiletries (continued)
Nu Skin Enterprises, Inc., Class A	173,800 $	3,010,216

		5,870,479
Crude Petroleum & Natural Gas - 0.95%
Chesapeake Energy Corp.	90,628	2,861,126
Drugs & Health Care - 2.05%
Shionogi & Company, Ltd.	263,347	4,734,883
Zymogenetics, Inc. * (a)	73,500	1,421,490

		6,156,373
Electrical Equipment - 0.77%
Tektronix, Inc.	82,146	2,328,018
Electronics - 1.87%
Barco N.V.	29,312	2,583,569
Garmin, Ltd. (a)	65,000	3,039,400

		5,622,969
Energy - 2.21%
Suntech Power Holdings Co., Ltd., ADR *	185,500	5,379,500
VeraSun Energy Corp. * (a)	57,900	1,274,958

		6,654,458
Financial Services - 5.98%
ETRADE Financial Corp.	119,695	2,823,605
Julius Baer Holding, Ltd.	35,851	3,437,767
Nasdaq Stock Market, Inc. * (a)	124,816	3,558,504
Nuveen Investments, Class A (a)	81,700	3,900,358
State Street Corp. (c)	69,276	4,281,257

		18,001,491
Healthcare Products - 3.19%
Hologic, Inc. * (a)	78,300	3,380,994
Kyphon, Inc. * (a)	123,500	4,471,935
The Medicines Company * (a)	77,239	1,742,512

		9,595,441
Healthcare Services - 2.19%
Covance, Inc. *	42,435	2,667,888
IMS Health, Inc.	143,200	3,907,928

		6,575,816
Industrial Machinery - 1.64%
Energy Conversion Devices, Inc. * (a)	84,900	2,975,745
Joy Global, Inc.	44,800	1,950,592

		4,926,337
International Oil - 0.77%
Nabors Industries, Ltd. *	70,900	2,331,192
Internet Service Provider - 0.70%
Redback Networks, Inc. * (a)	112,800	2,102,592
Internet Software - 0.52%
Tencent Holdings, Ltd.	719,300	1,572,352
Leisure Time - 1.57%
DreamWorks Animation SKG, Class A *	114,239	2,420,724
Harrah's Entertainment, Inc.	36,775	2,293,289

		4,714,013

Mid Cap Stock Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Life Sciences - 1.21%
Pharmaceutical Product Development, Inc.	95,120	$	3,625,974
Manufacturing - 1.92%
Roper Industries, Inc. (a)	48,500		2,249,430
Vallourec SA	15,700		3,514,740

			5,764,170
Medical-Hospitals - 0.13%
Health Management Associates, Inc., Class A	18,200		380,562
Metal & Metal Products - 1.12%
Cameco Corp.	82,252		3,368,219
Mining - 2.27%
Phelps Dodge Corp.	35,500		3,177,250
Teck Cominco, Ltd., Class B	54,700		3,655,054

			6,832,304
Petroleum Services - 0.69%
BJ Services Company	60,784		2,085,499
Pharmaceuticals - 5.14%
Alkermes, Inc. * (a)	83,101		1,358,701
Amylin Pharmaceuticals, Inc. * (a)	84,467		3,828,889
Elan Corp. PLC, ADR * (a)	161,900		2,676,207
Forest Laboratories, Inc. *	106,262		5,310,975
Herbalife, Ltd. *	22,400		731,808
Vertex Pharmaceuticals, Inc. * (a)	44,876		1,545,978

			15,452,558
Retail Trade - 5.91%
Fossil, Inc. * (a)	162,100		3,050,722
GameStop Corp., Class A * (a)	31,400		1,371,552
Kohl's Corp. *	95,300		5,957,203
Tiffany & Company	123,107		3,890,181
Williams-Sonoma, Inc.	119,607		3,523,622

			17,793,280
Sanitary Services - 1.23%
Stericycle, Inc. * (a)	55,304		3,688,224
Semiconductors - 4.34%
Fairchild Semiconductor International, Inc. *	160,300		2,890,209
Integrated Device Technology, Inc. *	232,400		4,004,252
International Rectifier Corp. *	78,500		2,771,050
Silicon-On-Insulator Technologies *	110,900		3,377,897

			13,043,408
Software - 11.51%
Activision, Inc. *	397,800		5,131,620
Adobe Systems, Inc. *	156,100		5,063,884
American Reprographics Company *	60,700		1,852,564
Autodesk, Inc. *	89,800		3,121,448
Cognos, Inc. * (a)	101,611		3,304,390
Red Hat, Inc. * (a)	144,000		3,346,560
TomTom NV *	56,548		2,303,275
Transaction Systems Architects, Inc., Class A *	74,200		2,461,214
VeriFone Holdings, Inc. * (a)	198,494		4,595,136

The accompanying notes are an integral part of the financial statements. 310

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Stock Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Software (continued)
Verint Systems, Inc. *		104,600	$	3,457,030

				34,637,121
Telecommunications Equipment &
Services - 3.06%
Amdocs, Ltd. *		72,300		2,743,785
NeuStar, Inc., Class A *		103,900		2,932,058
Polycom, Inc. * (a)		148,600		3,535,194

				9,211,037
Travel Services - 1.05%
Ctrip.com International Ltd., ADR (a)		61,000		3,149,430

TOTAL COMMON STOCKS (Cost $273,227,435)			$	289,644,910


SHORT TERM INVESTMENTS - 24.41%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	73,452,448	$	73,452,448

TOTAL SHORT TERM INVESTMENTS
(Cost $73,452,448)			$	73,452,448


REPURCHASE AGREEMENTS - 4.12%
Repurchase Agreement with Banc of
America dated 08/31/2006 at
5.22% to be repurchased at
$12,378,795 on 9/1/2006,
collateralized by $11,775,000 U.S.
Treasury Notes, 5.50% due
08/15/2028 (valued at
$12,629,521, including interest)	$	12,377,000	$	12,377,000

TOTAL REPURCHASE AGREEMENTS
(Cost $12,377,000)			$	12,377,000

Total Investments (Mid Cap Stock Fund)
(Cost $359,056,883) - 124.80%			$	375,474,358
Liabilities in Excess of Other Assets - (24.80)%				(74,604,580)

TOTAL NET ASSETS - 100.00%			$	300,869,778



Mid Cap Value Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 95.85%
Advertising - 2.30%
The Interpublic Group of Companies, Inc. * (a)		359,006	$	3,295,675
Agriculture - 2.86%
Monsanto Company		30,096		1,427,754
Mosaic Company * (a)		164,129		2,665,455

				4,093,209
Auto Parts - 1.79%
Genuine Parts Company		61,893		2,558,038
Broadcasting - 1.97%
Clear Channel Communications, Inc.		97,200		2,822,688

Mid Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Business Services - 6.54%
Cadence Design Systems, Inc. *	170,829	$	2,806,720
R.H. Donnelley Corp. *	58,853		3,196,895
R.R. Donnelley & Sons Company	103,676		3,361,176

			9,364,791
Chemicals - 3.33%
Chemtura Corp.	176,631		1,534,923
Eastman Chemical Company	61,762		3,239,417

			4,774,340
Computers & Business Equipment - 1.33%
Sybase, Inc. * (a)	82,556		1,904,567
Containers & Glass - 4.38%
Ball Corp.	78,122		3,151,442
Pactiv Corp. *	116,473		3,113,323

			6,264,765
Crude Petroleum & Natural Gas - 1.65%
EOG Resources, Inc.	36,415		2,360,420
Electrical Equipment - 1.70%
Hubbell, Inc., Class B	52,437		2,438,321
Electrical Utilities - 6.39%
Ameren Corp. (a)	52,742		2,824,334
CMS Energy Corp. *	178,223		2,609,185
Northeast Utilities	116,321		2,653,282
Puget Energy, Inc.	46,757		1,058,111

			9,144,912
Gas & Pipeline Utilities - 2.40%
NiSource, Inc.	124,651		2,638,862
Southwest Gas Corp.	23,545		793,466

			3,432,328
Healthcare Products - 1.16%
Bausch & Lomb, Inc. (a)	34,445		1,667,482
Hotels & Restaurants - 2.18%
Brinker International, Inc.	43,532		1,674,676
OSI Restaurant Partners, Inc.	46,800		1,449,396

			3,124,072
Household Products - 1.69%
Newell Rubbermaid, Inc. (a)	52,279		1,411,010
Tupperware Brands Corp. (a)	56,161		1,011,460

			2,422,470
Industrial Machinery - 2.97%
CNH Global NV	21,008		461,966
Cummins, Inc. (a)	13,617		1,563,504
W.W. Grainger, Inc.	33,388		2,230,318

			4,255,788
Insurance - 11.10%
ACE, Ltd.	22,063		1,188,313
Aetna, Inc.	37,028		1,380,034
Conseco, Inc. *	108,263		2,241,044
Everest Re Group, Ltd.	14,970		1,406,881
Genworth Financial, Inc.	51,317		1,766,844

The accompanying notes are an integral part of the financial statements. 311

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
PartnerRe, Ltd.	44,415	$	2,855,884
PMI Group, Inc.	17,654		763,359
SAFECO Corp.	27,400		1,581,254
XL Capital, Ltd., Class A (a)	41,186		2,703,449

			15,887,062
Internet Software - 1.99%
McAfee, Inc. *	125,054		2,846,229
Manufacturing - 1.76%
Snap-on, Inc.	57,534		2,514,236
Metal & Metal Products - 1.69%
Timken Company	75,444		2,417,226
Mining - 0.52%
Potash Corp. of Saskatchewan, Inc.	7,639		748,393
Office Furnishings & Supplies - 1.83%
OfficeMax, Inc.	62,945		2,614,106
Paper - 2.73%
Bowater, Inc. (a)	74,565		1,694,862
MeadWestvaco Corp.	86,879		2,219,759

			3,914,621
Petroleum Services - 3.33%
GlobalSantaFe Corp.	49,566		2,439,639
Halliburton Company	71,586		2,335,135

			4,774,774
Pharmaceuticals - 3.92%
King Pharmaceuticals, Inc. *	172,029		2,790,311
Mylan Laboratories, Inc. (a)	138,988		2,824,236

			5,614,547
Publishing - 1.37%
American Greetings Corp., Class A (a)	79,974		1,960,962
Real Estate - 1.93%
Host Hotels & Resorts, Inc., REIT (a)	122,622		2,763,900
Retail Grocery - 2.75%
Safeway, Inc.	66,173		2,046,731
The Kroger Company	79,600		1,895,276

			3,942,007
Retail Trade - 3.08%
Federated Department Stores, Inc.	60,866		2,311,691
Foot Locker, Inc.	87,326		2,104,556

			4,416,247
Sanitary Services - 0.95%
Allied Waste Industries, Inc. *	131,300		1,357,642
Telecommunications Equipment &
Services - 6.25%
ADC Telecommunications, Inc. *	126,949		1,732,854
Avaya, Inc. *	226,644		2,368,430
Embarq Corp. *	31,100		1,466,365
JDS Uniphase Corp. * (a)	616,600		1,399,682
Level 3 Communications, Inc. * (a)	36,800		163,024

Mid Cap Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Telecommunications Equipment &
Services (continued)
Tellabs, Inc. *		178,011	$	1,813,932

				8,944,287

Telephone - 3.55%
CenturyTel, Inc.		45,953		1,829,848
Qwest Communications International, Inc. *		369,700		3,257,057

				5,086,905

Travel Services - 2.46%
Sabre Holdings Corp.		160,631		3,521,032

TOTAL COMMON STOCKS (Cost $128,408,878)			$	137,248,042


SHORT TERM INVESTMENTS - 14.60%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	20,909,218	$	20,909,218

TOTAL SHORT TERM INVESTMENTS
(Cost $20,909,218)			$	20,909,218


REPURCHASE AGREEMENTS - 4.07%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$5,820,639 on 09/01/2006,
collateralized by $6,060,000
Federal National Mortgage
Association, 5.80% due
02/09/2026 (valued at $5,938,800,
including interest) (c)	$	5,820,000	$	5,820,000

TOTAL REPURCHASE AGREEMENTS
(Cost $5,820,000)			$	5,820,000

Total Investments (Mid Cap Value Fund)
(Cost $155,138,096) - 114.52%			$	163,977,260
Liabilities in Excess of Other Assets - (14.52)%				(20,792,617)

TOTAL NET ASSETS - 100.00%			$	143,184,643



Mid Cap Value Equity Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 95.58%
Advertising - 0.55%
The Interpublic Group of Companies, Inc. * (a)		58,593	$	537,884
Aerospace - 0.45%
Goodrich Corp.		11,411		444,458
Agriculture - 0.86%
Archer-Daniels-Midland Company		9,265		381,440
Monsanto Company		2,843		134,872
Mosaic Company * (a)		20,388		331,101

				847,413

Air Travel - 0.72%
AMR Corp. * (a)		9,675		199,789

The accompanying notes are an integral part of the financial statements. 312

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Air Travel (continued)
Continental Airlines, Inc., Class B * (a)	12,469	$	312,847
US Airways Group, Inc. * (a)	4,500		190,125

			702,761
Apparel & Textiles - 2.29%
Liz Claiborne, Inc.	26,840		1,003,011
Mohawk Industries, Inc. * (a)	3,906		276,857
VF Corp.	13,790		963,783

			2,243,651
Auto Parts - 0.57%
Genuine Parts Company	5,433		224,546
Johnson Controls, Inc.	4,670		335,913

			560,459
Automobiles - 0.88%
Ford Motor Company (a)	103,200		863,784
Banking - 2.16%
AmSouth Bancorp.	32,746		938,173
Comerica, Inc.	14,688		840,888
Huntington Bancshares, Inc.	14,093		337,104

			2,116,165
Building Materials & Construction - 2.00%
American Standard Companies, Inc.	36,077		1,506,936
Chicago Bridge & Iron Company NV	16,709		451,310

			1,958,246
Business Services - 4.52%
Computer Sciences Corp. * (a)	16,659		789,303
Dun & Bradstreet Corp. *	3,758		264,225
Electronic Data Systems Corp.	46,912		1,117,913
Fluor Corp.	8,215		709,940
Pitney Bowes, Inc.	6,384		278,279
R.H. Donnelley Corp. * (a)	18,245		991,068
R.R. Donnelley & Sons Company	8,844		286,723

			4,437,451
Chemicals - 2.56%
Cabot Corp.	7,319		243,211
Eastman Chemical Company	16,174		848,326
Imperial Chemical Industries PLC (a)	10,564		299,384
Lubrizol Corp.	5,724		248,937
PPG Industries, Inc.	13,812		875,128

			2,514,986
Computers & Business Equipment - 0.27%
Diebold, Inc.	5,938		248,861
Xerox Corp. *	1,339		19,831

			268,692
Construction & Mining Equipment - 0.36%
National Oilwell, Inc. *	5,483		358,040
Construction Materials - 0.53%
USG Corp. * (a)	10,106		515,406
Crude Petroleum & Natural Gas - 2.22%
Newfield Exploration Company *	9,565		413,591

Mid Cap Value Equity Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Crude Petroleum & Natural Gas
(continued)
Pioneer Natural Resources Company	22,056	$	919,956
Sunoco, Inc.	11,709		841,994

			2,175,541
Electrical Equipment - 0.93%
Ballard Power Systems, Inc. * (a)	14,405		88,879
Cooper Industries, Ltd., Class A	9,488		776,877
Plug Power, Inc. * (a)	10,061		47,689

			913,445
Electrical Utilities - 7.71%
American Electric Power Company, Inc.	16,307		594,879
CMS Energy Corp. *	13,397		196,132
Consolidated Edison, Inc. (a)	15,752		727,743
Constellation Energy Group, Inc.	9,544		573,499
DPL, Inc. (a)	21,556		599,257
DTE Energy Company (a)	16,764		699,729
Edison International	23,850		1,040,814
Mirant Corp. *	13,857		401,437
Pinnacle West Capital Corp.	32,423		1,489,513
PPL Corp.	17,142		599,456
Reliant Energy, Inc. *	25,716		346,137
TECO Energy, Inc.	18,600		293,322

			7,561,918
Electronics - 0.42%
Solectron Corp. *	131,248		412,119
Energy - 3.07%
Energy East Corp.	38,092		923,731
Fuelcell Energy, Inc. * (a)	7,513		73,177
MDU Resources Group, Inc.	13,300		325,850
SCANA Corp.	6,800		281,180
Sempra Energy	14,654		728,597
Southwestern Energy Company *	8,566		294,242
Xcel Energy, Inc.	18,467		384,113

			3,010,890
Financial Services - 0.26%
Amvescap PLC	24,805		255,745
Food & Beverages - 1.17%
Del Monte Foods Company	38,807		430,758
Tyson Foods, Inc., Class A (a)	48,733		717,837

			1,148,595
Forest Products - 0.81%
Rayonier, Inc.	20,037		791,462
Gas & Pipeline Utilities - 3.36%
El Paso Corp.	51,726		751,061
Enbridge, Inc.	24,374		803,855
NiSource, Inc.	60,072		1,271,724
Questar Corp.	5,431		469,999

			3,296,639

The accompanying notes are an integral part of the financial statements. 313

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Services - 2.60%
Health Net, Inc. *	11,431	$	477,930
Humana, Inc. *	23,973		1,460,675
McKesson Corp.	4,619		234,645
Omnicare, Inc.	8,402		380,695

			2,553,945
Holdings Companies/Conglomerates - 1.89%
Loews Corp.	36,153		1,391,167
Textron, Inc.	5,581		468,023

			1,859,190
Hotels & Restaurants - 0.74%
Hilton Hotels Corp.	28,456		724,774
Household Appliances - 0.86%
Whirlpool Corp. (a)	10,450		845,510
Industrial Machinery - 3.61%
AGCO Corp. * (a)	45,820		1,138,627
Dover Corp.	10,136		492,812
Energy Conversion Devices, Inc. * (a)	2,973		104,204
Ingersoll-Rand Company, Class A	29,895		1,136,608
Manitowoc, Inc.	7,026		310,549
Terex Corp. *	8,100		355,833

			3,538,633
Insurance - 13.63%
ACE, Ltd.	34,277		1,846,159
Aon Corp.	57,245		1,978,960
Axis Capital Holdings, Ltd.	24,072		780,655
Conseco, Inc. *	9,808		203,025
Everest Re Group, Ltd.	23,617		2,219,526
Lincoln National Corp.	17,483		1,061,218
PartnerRe, Ltd. (a)	23,300		1,498,190
Torchmark Corp.	10,889		677,405
Willis Group Holdings, Ltd.	17,052		617,623
XL Capital, Ltd., Class A	37,911		2,488,478

			13,371,239
International Oil - 1.91%
Hess Corp.	15,409		705,424
Nabors Industries, Ltd. * (a)	14,783		486,065
Weatherford International, Ltd. *	15,821		680,303

			1,871,792
Internet Software - 0.46%
McAfee, Inc. *	19,994		455,063
Leisure Time - 1.89%
Regal Entertainment Group, Class A (a)	43,600		860,228
Royal Caribbean Cruises, Ltd. (a)	27,195		992,074

			1,852,302
Manufacturing - 3.71%
Cameron International Corp. *	15,484		741,839
Eaton Corp.	14,156		941,374
Reddy Ice Holdings, Inc.	13,060		309,783
Rockwell Automation, Inc.	14,287		805,501

Mid Cap Value Equity Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Manufacturing (continued)
Stanley Works	17,765	$	839,041

			3,637,538
Medical-Hospitals - 0.47%
Health Management Associates, Inc., Class A	22,245		465,143
Mining - 0.94%
Freeport-McMoran Copper & Gold, Inc.,
Class B (a)	8,478		493,504
Phelps Dodge Corp.	4,843		433,449

			926,953
Paper - 0.78%
Bowater, Inc. (a)	11,884		270,123
MeadWestvaco Corp.	9,227		235,750
Temple-Inland, Inc.	5,849		260,398

			766,271
Petroleum Services - 4.78%
BJ Services Company	20,200		693,062
ENSCO International, Inc.	8,189		365,966
GlobalSantaFe Corp.	25,478		1,254,027
McDermott International, Inc. *	31,078		1,497,960
Smith International, Inc.	12,924		542,420
Suncor Energy, Inc.	4,338		336,542

			4,689,977
Pharmaceuticals - 2.24%
AmerisourceBergen Corp.	17,592		776,863
Hospira, Inc. *	6,072		222,417
King Pharmaceuticals, Inc. *	20,371		330,418
Mylan Laboratories, Inc.	32,575		661,924
Watson Pharmaceuticals, Inc. *	8,079		207,145

			2,198,767
Photography - 0.62%
Eastman Kodak Company (a)	28,605		608,428
Publishing - 0.87%
Tribune Company (a)	27,234		849,973
Railroads & Equipment - 0.97%
CSX Corp.	31,536		953,018
Real Estate - 1.78%
Boston Properties, Inc., REIT	2,873		291,983
Crescent Real Estate Equities Company, REIT (a)	21,845		472,944
Equity Residential, REIT	19,585		976,704

			1,741,631
Retail Trade - 1.96%
Family Dollar Stores, Inc.	28,016		716,369
Federated Department Stores, Inc.	23,040		875,059
Ritchie Brothers Auctioneers, Inc. (a)	6,770		331,392

			1,922,820
Sanitary Services - 0.11%
Insituform Technologies, Inc., Class A *	4,682		107,452
Semiconductors - 2.48%
Intersil Corp., Class A	32,954		835,384

The accompanying notes are an integral part of the financial statements. 314

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Semiconductors (continued)
Microchip Technology, Inc.		15,008	$	512,673
National Semiconductor Corp.		44,641		1,084,330

				2,432,387
Software - 0.96%
BMC Software, Inc. *		35,551		946,368
Steel - 0.30%
Nucor Corp.		6,089		297,569
Telecommunications Equipment &
Services - 1.45%
Citizens Communications Company		36,179		498,908
Tellabs, Inc. *		90,356		920,728

				1,419,636
Telephone - 2.71%
CenturyTel, Inc.		25,614		1,019,949
Qwest Communications International, Inc. * (a)		95,895		844,835
Windstream Corp. *		60,295		795,894

				2,660,678
Tobacco - 1.90%
Loews Corp. - Carolina Group		20,400		1,168,104
Reynolds American, Inc. (a)		10,710		696,900

				1,865,004
Toys, Amusements & Sporting Goods - 0.29%
Hasbro, Inc.		14,176		287,773

TOTAL COMMON STOCKS (Cost $96,362,520)			$	93,785,584


CORPORATE BONDS - 0.64%
Telephone - 0.64%
Qwest Communications International, Inc.
3.50% due 11/15/2025	$	381,000		627,221

TOTAL CORPORATE BONDS (Cost $515,303)			$	627,221


SHORT TERM INVESTMENTS - 22.55%
Chesham Finance LLC
5.28% due 09/01/2006	$	3,000,000	$	3,000,000
Sheffield Receivables Corp.
5.28% due 09/01/2006		1,900,000		1,900,000
State Street Navigator Securities Lending
Prime Portfolio (c)		17,229,156		17,229,156

TOTAL SHORT TERM INVESTMENTS
(Cost $22,129,156)			$	22,129,156

Total Investments (Mid Cap Value Equity Fund)
(Cost $119,006,979) - 118.77%			$	116,541,961
Liabilities in Excess of Other Assets - (18.77)%				(18,418,181)

TOTAL NET ASSETS - 100.00%			$	98,123,780

Natural Resources Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 94.51%
Aluminum - 1.81%
Alcoa, Inc.	490,225	$	14,015,533
Chemicals - 0.04%
Arkema, ADR *	7,769		302,617
Coal - 1.50%
CONSOL Energy, Inc. (a)	211,586		7,716,541
Massey Energy Company (a)	154,223		3,892,589

			11,609,130
Crude Petroleum & Natural Gas - 7.14%
EOG Resources, Inc.	307,269		19,917,177
Newfield Exploration Company * (a)	163,752		7,080,636
Surgutneftegaz, ADR (a)	111,145		8,447,020
XTO Energy, Inc.	430,786		19,717,075

			55,161,908
Domestic Oil - 5.82%
Noble Energy, Inc.	167,364		8,271,129
Suncor Energy, Inc.	289,307		22,391,131
Western Oil Sands, Inc. *	539,011		14,368,431

			45,030,691
Gas & Pipeline Utilities - 0.76%
Equitable Resources, Inc.	160,260		5,907,184
Gold - 2.24%
Barrick Gold Corp.	200,256		6,704,571
Gold Fields, Ltd.	545,149		10,599,383

			17,303,954
International Oil - 23.98%
Canadian Natural Resources, Ltd.	752,933		39,481,952
China Petroleum and Chemical Corp., ADR (a)	129,165		7,631,068
ConocoPhillips	241,428		15,313,778
EnCana Corp. - CAD	692,754		36,307,534
Lukoil Oil Company, ADR	203,227		17,010,100
Petroleo Brasileiro SA, ADR	203,249		18,223,305
Royal Dutch Shell PLC, ADR, Class B shares	119,249		8,533,458
Royal Dutch Shell PLC, ADR	156,669		10,800,761
Talisman Energy, Inc.	1,830,498		32,089,334

			185,391,290
Metal & Metal Products - 14.06%
Alumina, Ltd.	2,125,111		10,294,918
Cameco Corp.	753,222		30,844,441
Companhia Siderurgica Nacional SA, ADR (a)	234,297		6,869,588
Companhia Vale Do Rio Doce, ADR	481,478		10,322,888
Companhia Vale Do Rio Doce, SADR	1,530,352		27,546,336
Vedanta Resources PLC	880,673		22,800,303

			108,678,474
Mining - 13.02%
Aluminum Corp. China, Ltd., ADR (a)	117,172		8,213,757
Anglo American PLC	179,843		7,772,660
Anglo Platinum, Ltd.	210,463		23,616,985
Freeport-McMoran Copper & Gold, Inc.,
Class B (a)	211,630		12,318,982
Impala Platinum Holdings, Ltd.	37,912		7,029,029

The accompanying notes are an integral part of the financial statements. 315

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Natural Resources Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Mining (continued)
Newmont Mining Corp.		298,900	$	15,318,625
Xstrata PLC		587,211		26,339,395

				100,609,433
Paper - 2.41%
Abitibi-Consolidated, Inc.		286,519		773,602
International Paper Company		512,965		17,835,793

				18,609,395
Petroleum Services - 19.93%
BP PLC, SADR (a)		356,327		24,248,052
Exxon Mobil Corp.		499,805		33,821,804
GlobalSantaFe Corp.		120,723		5,941,986
Halliburton Company		374,202		12,206,469
Petro-Canada		248,731		10,608,687
Repsol YPF SA, ADR		190,076		5,458,983
Total SA, ADR		319,262		21,527,837
Transocean, Inc. *		101,585		6,780,799
Valero Energy Corp.		582,266		33,422,068

				154,016,685
Steel - 1.80%
Mittal Steel Company, NV (a)		406,625		13,926,906

TOTAL COMMON STOCKS (Cost $617,090,119)			$	730,563,200


PREFERRED STOCKS - 0.23%
Mining - 0.23%
Anglo American Platinum Corp., Ltd.- ZAR *		42,800		1,762,405

TOTAL PREFERRED STOCKS (Cost $1,196,524)			$	1,762,405


SHORT TERM INVESTMENTS - 9.43%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	72,883,888	$	72,883,888

TOTAL SHORT TERM INVESTMENTS
(Cost $72,883,888)			$	72,883,888


REPURCHASE AGREEMENTS - 4.59%
Repurchase Agreement with Banc of
America dated 08/31/2006 at
5.22% to be repurchased at
$35,467,142 on 9/1/2006,
collateralized by $33,730,000 U.S.
Treasury Notes, 5.50% due
08/15/2028 (valued at			��
$36,177,812, including interest)	$	35,462,000	$	35,462,000

TOTAL REPURCHASE AGREEMENTS
(Cost $35,462,000)			$	35,462,000

Total Investments (Natural Resources Fund)
(Cost $726,632,531) - 108.76%			$	840,671,493
Liabilities in Excess of Other Assets - (8.76)%				(67,727,442)

TOTAL NET ASSETS - 100.00%			$	772,944,051

Quantitative All Cap Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 99.37%
Advertising - 0.32%
24/7 Real Media, Inc. *	1,792	$	16,271
Air Travel - 0.51%
Continental Airlines, Inc., Class B *	1,023		25,667
Aluminum - 0.99%
Alcan Aluminum, Ltd.	338		15,251
Century Aluminum Company *	1,002		34,779

			50,030
Apparel & Textiles - 4.26%
Coach, Inc. *	3,121		94,223
Guess?, Inc. *	799		32,599
Movado Group, Inc.	1,789		40,235
Phillips-Van Heusen Corp.	823		31,801
Wolverine World Wide, Inc.	658		16,601

			215,459
Automobiles - 1.68%
General Motors Corp.	2,104		61,395
Rush Enterprises, Inc., Class A *	1,342		23,485

			84,880
Banking - 6.10%
Bank of America Corp.	3,259		167,741
Corus Bankshares, Inc.	2,724		59,410
FirstFed Financial Corp. *	667		33,924
Unibanco - Uniao De Bancos
Brasileiros SA, ADR *	656		47,461

			308,536
Building Materials & Construction - 0.39%
Builders FirstSource, Inc. *	1,297		19,714
Business Services - 3.27%
Alliance Data Systems Corp. *	935		47,255
Cadence Design Systems, Inc. *	2,906		47,745
Compucredit Corp. *	692		20,172
Healthcare Services Group, Inc.	785		17,812
Labor Ready, Inc. *	1,015		17,387
Syntel, Inc.	671		14,702

			165,073
Chemicals - 0.74%
Celanese Corp., Series A	809		14,958
Georgia Gulf Corp.	837		22,214

			37,172
Computers & Business Equipment - 5.18%
Brocade Communications Systems, Inc. *	7,843		48,627
Cisco Systems, Inc. *	5,672		124,727
Cognizant Technology Solutions Corp.,
Class A *	215		15,031
Sybase, Inc. *	2,091		48,239
Witness Systems, Inc. *	1,557		25,301

			261,925
Cosmetics & Toiletries - 1.92%
Alberto-Culver Company, Class B	546		26,880

The accompanying notes are an integral part of the financial statements. 316

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Quantitative All Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Cosmetics & Toiletries (continued)
Colgate-Palmolive Company	1,171	$	70,096

			96,976
Crude Petroleum & Natural Gas - 1.78%
Patterson-UTI Energy, Inc.	3,288		90,091
Domestic Oil - 0.28%
Oil States International, Inc. *	449		14,350
Drugs & Health Care - 0.21%
Candela Corp. *	1,031		10,753
Electrical Equipment - 0.67%
Littelfuse, Inc. *	414		14,950
Wesco International, Inc. *	328		19,188

			34,138
Electrical Utilities - 0.80%
FirstEnergy Corp.	709		40,456
Electronics - 1.02%
Amphenol Corp., Class A	209		12,011
Sycamore Networks, Inc. *	5,725		21,011
Thomas & Betts Corp. *	409		18,470

			51,492
Energy - 3.60%
Energen Corp.	640		27,930
Ormat Technologies, Inc.	421		15,320
Sempra Energy	667		33,163
TXU Corp.	1,594		105,539

			181,952
Financial Services - 9.59%
AmeriCredit Corp. *	943		22,151
Barclays PLC, SADR	521		26,363
Bear Stearns Companies, Inc.	646		84,206
Countrywide Financial Corp.	2,119		71,622
Federal National Mortgage Association	343		18,059
Fremont General Corp.	3,369		48,109
Goldman Sachs Group, Inc.	870		129,326
Lehman Brothers Holdings, Inc.	1,332		84,995

			484,831
Food & Beverages - 4.39%
Domino's Pizza, Inc.	945		23,105
Pepsi Bottling Group, Inc.	664		23,247
PepsiCo, Inc.	2,226		145,313
Starbucks Corp. *	983		30,483

			222,148
Healthcare Products - 4.00%
Bruker BioSciences Corp. *	1,904		13,442
ICU Medical, Inc. *	395		17,384
Johnson & Johnson	2,401		155,249
Varian Medical Systems, Inc. *	302		16,097

			202,172
Healthcare Services - 5.09%
Caremark Rx, Inc.	978		56,665

Quantitative All Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Services (continued)
Covance, Inc. *	585	$	36,779
Emdeon Corp. *	2,439		28,902
Phase Forward, Inc. *	1,154		13,606
UnitedHealth Group, Inc.	2,334		121,251

			257,203
Holdings Companies/Conglomerates - 1.28%
General Electric Company	1,898		64,646
Hotels & Restaurants - 3.19%
Brinker International, Inc.	678		26,083
McDonald's Corp.	3,767		135,235

			161,318
Industrial Machinery - 4.39%
Caterpillar, Inc.	918		60,909
Ceradyne, Inc. *	1,024		45,128
Cummins, Inc.	556		63,840
Ingersoll-Rand Company, Class A	651		24,751
Terex Corp. *	623		27,368

			221,996
Insurance - 3.99%
Endurance Specialty Holdings, Ltd.	1,372		44,274
IPC Holdings, Ltd.	930		25,994
RenaissanceRe Holdings, Ltd.	2,063		106,244
Zenith National Insurance Corp.	661		24,986

			201,498
International Oil - 2.19%
Callon Petroleum Company *	1,615		24,984
ConocoPhillips	1,349		85,567

			110,551
Internet Software - 1.34%
Akamai Technologies, Inc. *	1,722		67,502
Liquor - 0.96%
Central European Distribution Corp. *	2,097		48,294
Manufacturing - 0.57%
Illinois Tool Works, Inc.	657		28,842
Metal & Metal Products - 0.49%
Southern Copper Corp.	270		24,926
Petroleum Services - 3.43%
ENSCO International, Inc.	529		23,641
Exxon Mobil Corp.	968		65,504
Pioneer Drilling Company *	1,745		24,587
Repsol YPF SA, ADR	701		20,133
Todco, Class A *	1,065		39,437

			173,302
Pharmaceuticals - 2.37%
Abbott Laboratories	457		22,256
Eli Lilly & Company	290		16,220
Pfizer, Inc.	2,948		81,247

			119,723

The accompanying notes are an integral part of the financial statements. 317

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Quantitative All Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Railroads & Equipment - 0.67%
Burlington Northern Santa Fe Corp.	505	$	33,810
Real Estate - 2.41%
First Industrial Realty Trust, Inc., REIT	1,268		54,930
Hospitality Properties Trust, REIT	1,446		66,979

			121,909
Retail Trade - 2.64%
CVS Corp.	1,590		53,344
J. Crew Group, Inc. *	414		10,487
Kohl's Corp. *	504		31,505
Staples, Inc.	612		13,807
United Rentals, Inc. *	1,130		24,476

			133,619
Semiconductors - 1.73%
Applied Micro Circuits Corp. *	9,394		25,645
DSP Group, Inc. *	991		24,250
Marvell Technology Group, Ltd. *	2,151		37,664

			87,559
Software - 4.08%
BEA Systems, Inc. *	5,062		69,501
Blackbaud, Inc.	1,514		34,989
Microsoft Corp.	1,648		42,337
VeriFone Holdings, Inc. *	2,559		59,241

			206,068
Steel - 0.46%
POSCO, SADR	376		23,353
Telecommunications Equipment &
Services - 1.80%
Ciena Corp. *	8,108		32,027
NICE Systems, Ltd. *	1,222		30,501
SK Telecom Company, Ltd., ADR	1,300		28,470

			90,998
Telephone - 2.58%
AT&T, Inc.	3,075		95,725
Cincinnati Bell, Inc. *	6,854		34,613

			130,338
Tobacco - 0.71%
Altria Group, Inc.	429		35,834
Trucking & Freight - 1.30%
Plains All American Pipeline LP	512		23,552
YRC Worldwide, Inc. *	1,144		42,076

			65,628

TOTAL COMMON STOCKS (Cost $4,981,271)		$	5,023,003

Total Investments (Quantitative All Cap Fund)
(Cost $4,981,271) - 99.37%		$	5,023,003
Other Assets in Excess of Liabilities - 0.63%			31,834

TOTAL NET ASSETS - 100.00%		$	5,054,837

Quantitative Mid Cap Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 97.37%
Aerospace - 0.85%
Moog, Inc., Class A *	47,900	$	1,563,935
Apparel & Textiles - 2.44%
Gildan Activewear, Inc. * (a)	19,000		949,240
Guess?, Inc. * (a)	39,200		1,599,360
Polo Ralph Lauren Corp., Class A	32,600		1,923,074

			4,471,674
Automobiles - 0.46%
United Auto Group, Inc. (a)	41,700		851,514
Banking - 5.01%
Colonial Bancgroup, Inc.	151,700		3,715,133
Compass Bancshares, Inc.	31,700		1,838,600
Cullen Frost Bankers, Inc.	30,200		1,780,592
Zions Bancorp.	23,440		1,851,526

			9,185,851
Business Services - 4.65%
Alliance Data Systems Corp. *	53,350		2,696,309
Ceridian Corp. *	39,100		933,317
Corporate Executive Board Company	20,193		1,769,714
MPS Group, Inc. *	106,500		1,497,390
URS Corp. *	40,200		1,630,110

			8,526,840
Cellular Communications - 0.91%
American Tower Corp., Class A *	46,600		1,671,076
Chemicals - 1.52%
Airgas, Inc.	77,861		2,788,981
Coal - 0.91%
Peabody Energy Corp.	37,900		1,670,253
Commercial Services - 2.98%
CB Richard Ellis Group, Inc. *	127,600		2,934,800
Pool Corp. (a)	66,504		2,531,807

			5,466,607
Computers & Business Equipment - 2.33%
Cognizant Technology Solutions Corp.,
Class A *	45,679		3,193,419
Logitech International S.A., ADR * (a)	49,500		1,079,100

			4,272,519
Containers & Glass - 1.87%
Pactiv Corp. *	61,700		1,649,241
Silgan Holdings, Inc.	50,359		1,782,709

			3,431,950
Crude Petroleum & Natural Gas - 2.91%
Patterson-UTI Energy, Inc.	95,650		2,620,810
XTO Energy, Inc.	59,174		2,708,394

			5,329,204
Domestic Oil - 2.46%
Oil States International, Inc. *	65,900		2,106,164
St. Mary Land & Exploration Company (a)	58,960		2,405,568

			4,511,732

The accompanying notes are an integral part of the financial statements. 318

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Quantitative Mid Cap Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
Electrical Equipment - 3.49%
AMETEK, Inc.	69,442 $	2,977,673
Anixter International, Inc. *	45,700	2,490,193
Wesco International, Inc. *	15,700	918,450

		6,386,316
Electrical Utilities - 1.43%
Allegheny Energy, Inc. * (a)	62,600	2,612,924
Electronics - 3.87%
Amphenol Corp., Class A (a)	31,371	1,802,891
Arrow Electronics, Inc. *	32,600	909,540
AVX Corp. (a)	58,200	966,702
Thomas & Betts Corp. *	56,250	2,540,250
Trimble Navigation, Ltd. *	17,600	861,872

		7,081,255
Energy - 1.79%
NRG Energy, Inc. * (a)	64,650	3,273,876
Financial Services - 3.54%
AllianceBernstein Holding LP * (a)	30,109	2,008,270
ETRADE Financial Corp.	58,100	1,370,579
Moneygram International, Inc.	44,600	1,400,440
The First Marblehead Corp. (a)	32,600	1,711,500

		6,490,789
Food & Beverages - 2.31%
Constellation Brands, Inc., Class A *	86,186	2,352,016
Hormel Foods Corp. (a)	51,110	1,873,181

		4,225,197
Gas & Pipeline Utilities - 3.12%
Magellan Midstream Partners LP (a)	64,553	2,378,778
Questar Corp.	38,562	3,337,156

		5,715,934
Healthcare Products - 3.63%
Hologic, Inc. *	44,500	1,921,510
Intuitive Surgical, Inc. * (a)	26,300	2,482,720
ResMed, Inc. * (a)	55,100	2,241,468

		6,645,698
Healthcare Services - 2.41%
Laboratory Corp. of America Holdings *	28,200	1,929,444
Sierra Health Services, Inc. *	57,800	2,479,620

		4,409,064
Hotels & Restaurants - 1.84%
Choice Hotels, Inc.	21,300	807,483
Darden Restaurants, Inc.	72,600	2,570,040

		3,377,523
Household Appliances - 0.74%
The Toro Company	33,800	1,352,338
Industrials - 2.32%
Crane Company	25,800	1,031,484
Harsco Corp.	40,366	3,211,519

		4,243,003

Quantitative Mid Cap Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance - 6.60%
American Financial Group, Inc.	30,700	$	1,434,304
Arch Capital Group, Ltd. *	44,500		2,652,200
CNA Financial Corp. *	32,600		1,130,242
Radian Group, Inc.	29,000		1,736,520
RenaissanceRe Holdings, Ltd.	30,400		1,565,600
W.R. Berkley Corp.	102,247		3,578,645

			12,097,511
Internet Software - 1.06%
Akamai Technologies, Inc. *	49,400		1,936,480
Leisure Time - 0.66%
Scientific Games Corp., Class A * (a)	41,510		1,206,696
Life Sciences - 1.01%
Pharmaceutical Product Development, Inc.	48,700		1,856,444
Medical-Hospitals - 0.98%
VCA Antech, Inc. *	50,500		1,788,710
Mutual Funds - 4.78%
Midcap SPDR Trust, Series 1 (a)	64,000		8,759,680
Petroleum Services - 1.85%
Superior Energy Services, Inc. *	54,500		1,740,185
Tesoro Petroleum Corp.	25,600		1,654,016

			3,394,201
Pharmaceuticals - 2.47%
Celgene Corp. * (a)	60,078		2,444,574
Elan Corp. PLC, ADR * (a)	125,800		2,079,474

			4,524,048
Publishing - 0.50%
McGraw-Hill Companies, Inc.	16,300		911,333
Real Estate - 1.84%
Host Hotels & Resorts, Inc., REIT	64,200		1,447,068
SL Green Realty Corp., REIT	17,200		1,918,832

			3,365,900
Retail Trade - 5.08%
American Eagle Outfitters, Inc.	53,600		2,070,568
Circuit City Stores, Inc.	80,400		1,898,244
Coldwater Creek, Inc. * (a)	146,100		4,013,367
Rent-A-Center, Inc. *	48,500		1,314,350

			9,296,529
Sanitary Services - 3.41%
Aqua America, Inc. (a)	106,481		2,522,535
Republic Services, Inc.	96,000		3,722,880

			6,245,415
Semiconductors - 2.48%
Integrated Device Technology, Inc. *	90,400		1,557,592
Intersil Corp., Class A	52,900		1,341,015
MEMC Electronic Materials, Inc. *	42,450		1,641,966

			4,540,573
Software - 0.74%
ANSYS, Inc. *	28,900		1,350,786

The accompanying notes are an integral part of the financial statements. 319

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Quantitative Mid Cap Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Telecommunications Equipment &
Services - 2.71%
Amdocs, Ltd. *		60,600	$	2,299,770
Polycom, Inc. *		111,900		2,662,101

				4,961,871
Transportation - 0.92%
Con-way, Inc.		35,100		1,679,535
Trucking & Freight - 0.49%
Werner Enterprises, Inc. (a)		48,900		906,117

TOTAL COMMON STOCKS (Cost $168,408,495)			$	178,377,882


SHORT TERM INVESTMENTS - 25.46%
Rabobank USA Finance Corp.
5.27% due 09/01/2006	$	4,200,000	$	4,200,000
State Street Navigator Securities Lending
Prime Portfolio (c)		42,435,825		42,435,825

TOTAL SHORT TERM INVESTMENTS
(Cost $46,635,825)			$	46,635,825

Total Investments (Quantitative Mid Cap Fund)
(Cost $215,044,320) - 122.83%			$	225,013,707
Liabilities in Excess of Other Assets - (22.83)%				(41,829,444)

TOTAL NET ASSETS - 100.00%			$	183,184,263



Quantitative Value Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 99.01%
Aerospace - 0.92%
Northrop Grumman Corp.		63,200	$	4,222,392
Air Travel - 1.48%
Continental Airlines, Inc., Class B * (a)		270,800		6,794,372
Apparel & Textiles - 1.43%
Coach, Inc. *		217,100		6,554,249
Automobiles - 0.47%
General Motors Corp.		73,700		2,150,566
Banking - 9.22%
Bank of America Corp.		306,000		15,749,820
KeyCorp (a)		199,900		7,354,321
US Bancorp		333,600		10,698,552
Wachovia Corp.		154,300		8,429,409

				42,232,102
Business Services - 1.70%
Cadence Design Systems, Inc. *		191,600		3,147,988
MPS Group, Inc. *		330,700		4,649,642

				7,797,630
Cable and Television - 0.35%
Time Warner, Inc.		98,000		1,628,760

Quantitative Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Chemicals - 0.71%
Dow Chemical Company	85,500	$	3,260,115
Coal - 0.23%
CONSOL Energy, Inc. (a)	28,700		1,046,689
Computers & Business Equipment - 1.18%
Cisco Systems, Inc. *	76,500		1,682,235
Cognizant Technology Solutions Corp.,
Class A *	26,100		1,824,651
Sybase, Inc. *	82,100		1,894,047

			5,400,933
Construction Materials - 0.40%
Sherwin-Williams Company	35,800		1,848,712
Cosmetics & Toiletries - 1.71%
Colgate-Palmolive Company	83,600		5,004,296
Procter & Gamble Company	46,000		2,847,400

			7,851,696
Crude Petroleum & Natural Gas - 1.99%
Patterson-UTI Energy, Inc.	246,500		6,754,100
W&T Offshore, Inc.	73,400		2,355,406

			9,109,506
Electrical Utilities - 1.36%
PPL Corp.	178,400		6,238,648
Electronics - 1.14%
Arrow Electronics, Inc. *	121,700		3,395,430
Dolby Laboratories, Inc. *	85,300		1,850,157

			5,245,587
Energy - 3.48%
Energen Corp.	147,200��		6,423,808
Sempra Energy	191,300		9,511,436

			15,935,244
Financial Services - 17.18%
AmeriCredit Corp. *	170,000		3,993,300
Bear Stearns Companies, Inc.	47,000		6,126,450
Citigroup, Inc.	398,800		19,680,780
Countrywide Financial Corp.	338,300		11,434,540
Federal National Mortgage Association	68,400		3,601,260
Goldman Sachs Group, Inc.	47,400		7,046,010
JPMorgan Chase & Company	74,400		3,397,104
Lehman Brothers Holdings, Inc.	177,100		11,300,751
Morgan Stanley	184,400		12,131,676

			78,711,871
Food & Beverages - 3.61%
Constellation Brands, Inc., Class A *	122,700		3,348,483
Pepsi Bottling Group, Inc.	192,900		6,753,429
PepsiCo, Inc.	98,700		6,443,136

			16,545,048
Gas & Pipeline Utilities - 0.78%
Questar Corp.	41,100		3,556,794
Healthcare Products - 0.84%
Advanced Medical Optics, Inc. * (a)	27,800		1,338,570

The accompanying notes are an integral part of the financial statements. 320

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Quantitative Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Products (continued)
Johnson & Johnson	38,600	$	2,495,876

			3,834,446
Healthcare Services - 2.69%
Caremark Rx, Inc.	91,500		5,301,510
Emdeon Corp. * (a)	255,400		3,026,490
UnitedHealth Group, Inc.	77,000		4,000,150

			12,328,150
Holdings Companies/Conglomerates - 1.29%
General Electric Company	173,000		5,892,380
Hotels & Restaurants - 3.01%
Brinker International, Inc.	65,000		2,500,550
McDonald's Corp.	314,000		11,272,600

			13,773,150
Household Products - 0.55%
Newell Rubbermaid, Inc.	93,100		2,512,769
Industrial Machinery - 1.18%
Terex Corp. *	123,100		5,407,783
Insurance - 6.96%
Axis Capital Holdings, Ltd.	188,200		6,103,326
Endurance Specialty Holdings, Ltd. (a)	182,500		5,889,275
MGIC Investment Corp.	80,600		4,664,322
RenaissanceRe Holdings, Ltd.	6,600		339,900
W.R. Berkley Corp.	121,000		4,235,000
XL Capital, Ltd., Class A (a)	162,000		10,633,680

			31,865,503
International Oil - 6.13%
ChevronTexaco Corp.	123,700		7,966,280
ConocoPhillips	257,900		16,358,597
Hess Corp.	81,800		3,744,804

			28,069,681
Internet Software - 1.29%
Akamai Technologies, Inc. *	103,400		4,053,280
Symantec Corp. *	99,200		1,849,088

			5,902,368
Leisure Time - 0.71%
Walt Disney Company	110,100		3,264,465
Medical-Hospitals - 0.49%
VCA Antech, Inc. *	63,900		2,263,338
Metal & Metal Products - 0.87%
Reliance Steel & Aluminum Company	57,500		1,884,275
Southern Copper Corp. (a)	22,600		2,086,432

			3,970,707
Mining - 0.48%
Alliance Resource Partners LP (a)	59,800		2,194,062
Petroleum Services - 4.40%
Exxon Mobil Corp.	297,700		20,145,359
Pharmaceuticals - 2.29%
Eli Lilly & Company	84,300		4,714,899

Quantitative Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Pharmaceuticals (continued)
Pfizer, Inc.		208,900	$	5,757,284

				10,472,183
Real Estate - 2.46%
Hospitality Properties Trust, REIT (a)		115,700		5,359,224
Host Hotels & Resorts, Inc., REIT		51,900		1,169,826
iStar Financial, Inc., REIT		113,500		4,757,920

				11,286,970
Retail Trade - 2.70%
CVS Corp.		256,400		8,602,220
Staples, Inc.		166,200		3,749,472

				12,351,692
Semiconductors - 0.48%
Applied Micro Circuits Corp. *		807,200		2,203,656
Software - 1.55%
BEA Systems, Inc. *		262,800		3,608,244
Microsoft Corp.		75,000		1,926,750
VeriFone Holdings, Inc. * (a)		67,600		1,564,940

				7,099,934
Steel - 1.22%
Mittal Steel Company, NV (a)		113,400		3,883,950
United States Steel Corp.		29,500		1,716,015

				5,599,965
Telecommunications Equipment &
Services - 2.58%
Amdocs, Ltd. *		123,400		4,683,030
Ciena Corp. *		844,100		3,334,195
Citizens Communications Company		185,100		2,552,529
SK Telecom Company, Ltd., ADR		57,800		1,265,820

				11,835,574
Telephone - 4.30%
AT&T, Inc.		632,400		19,686,612
Tobacco - 1.20%
Altria Group, Inc.		65,700		5,487,921

TOTAL COMMON STOCKS (Cost $424,469,220)			$	453,579,582


SHORT TERM INVESTMENTS - 6.16%
Rabobank USA Finance Corp.
5.27% due 09/01/2006	$	3,620,000	$	3,620,000
State Street Navigator Securities Lending
Prime Portfolio (c)		24,592,740		24,592,740

TOTAL SHORT TERM INVESTMENTS
(Cost $28,212,740)			$	28,212,740

Total Investments (Quantitative Value Fund)
(Cost $452,681,960) - 105.17%			$	481,792,322
Liabilities in Excess of Other Assets - (5.17)%				(23,675,142)

TOTAL NET ASSETS - 100.00%			$	458,117,180

The accompanying notes are an integral part of the financial statements. 321

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Real Estate Equity Fund
	Shares or
	Principal
	Amount		Value

��
COMMON STOCKS - 93.65%
Construction Materials - 1.24%
Forest City Enterprises, Inc.	63,100	$	3,393,518
Hotels & Restaurants - 1.29%
Hilton Hotels Corp. (a)	139,700		3,558,159
Paper - 1.21%
Plum Creek Timber Company, Inc.	95,600		3,329,748
Real Estate - 89.91%
Alexandria Real Estate Equities, Inc., REIT	29,700		2,911,194
AMB Property Corp., REIT	155,630		8,688,823
Archstone-Smith Trust, REIT	202,890		10,789,690
Avalon Bay Communities, Inc., REIT	40,790		4,935,590
Boston Properties, Inc., REIT	99,750		10,137,592
BRE Properties, Inc., Class A, REIT (a)	65,840		3,890,486
Brookfield Properties Corp.	141,600		4,963,080
Camden Property Trust, REIT	83,100		6,447,729
CBL & Associates Properties, Inc., REIT (a)	81,200		3,308,088
Cousins Properties, Inc., REIT (a)	105,800		3,636,346
Developers Diversified Realty Corp., REIT	96,300		5,209,830
Duke Realty Corp., REIT	148,810		5,651,804
EastGroup Properties, Inc., REIT (a)	128,300		6,544,583
Equity Residential, REIT	225,850		11,263,139
Essex Property Trust, Inc., REIT (a)	25,700		3,224,579
Federal Realty Investment Trust, REIT	65,380		4,842,697
General Growth Properties, Inc., REIT	157,060		7,119,530
Host Hotels & Resorts, Inc., REIT	421,850		9,508,499
Kilroy Realty Corp., REIT	71,430		5,647,970
Kimco Realty Corp., REIT	146,000		6,066,300
LaSalle Hotel Properties, REIT	117,920		5,181,405
Mack-California Realty Corp., REIT (a)	125,310		6,660,227
Maguire Properties, Inc., REIT (a)	123,400		4,924,894
New Plan Realty Trust, Inc., REIT	232,800		6,422,952
Post Properties, Inc., REIT (a)	82,900		3,995,780
ProLogis, REIT	185,170		10,454,698
PS Business Parks, Inc., REIT (a)	51,570		3,151,958
Public Storage, Inc., REIT (a)	55,000		4,765,750
Reckson Associates Realty Corp., REIT	205,210		8,780,936
Regency Centers Corp., REIT	85,550		5,754,949
Simon Property Group, Inc., REIT	173,680		14,726,327
SL Green Realty Corp., REIT	70,370		7,850,477
Strategic Hotel Cap, Inc., REIT (a)	142,500		2,907,000
The Macerich Company, REIT	134,920		10,073,127
United Dominion Realty Trust, Inc., REIT (a)	128,600		3,923,586
Vornado Realty Trust, REIT	103,100		10,919,321
Washington Real Estate Investment Trust,
REIT (a)	162,880		6,616,186
Weingarten Realty Investors, REIT	123,900		5,255,838

			247,152,960

TOTAL COMMON STOCKS (Cost $235,882,314)		$	257,434,385

Real Estate Equity Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS - 5.67%
Real Estate - 5.67%
BRE Properties Inc, Series 144A
4.125% due 08/15/2026	$	2,775,000	$	2,836,050
EOP Operating LP
4.00% due 07/15/2026		11,060,000		11,450,639
Weingarten Realty Investors, Series 144A
3.95% due 08/01/2026 (a)		1,273,000		1,292,426

				15,579,115

TOTAL CORPORATE BONDS (Cost $15,100,461)			$	15,579,115


SHORT TERM INVESTMENTS - 12.53%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	34,447,109	$	34,447,109

TOTAL SHORT TERM INVESTMENTS
(Cost $34,447,109)			$	34,447,109


REPURCHASE AGREEMENTS - 0.83%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$2,297,252 on 9/1/2006,
collateralized by $2,330,000
Federal National Mortgage
Association, 5.125% due
12/15/2008 (valued at $2,344,563,
including interest) (c)	$	2,297,000	$	2,297,000

TOTAL REPURCHASE AGREEMENTS
(Cost $2,297,000)			$	2,297,000

Total Investments (Real Estate Equity Fund)
(Cost $287,726,884) - 112.68%			$	309,757,609
Liabilities in Excess of Other Assets - (12.68)%				(34,863,143)

TOTAL NET ASSETS - 100.00%			$	274,894,466



Real Estate Securities Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 97.58%
Hotels & Restaurants - 2.37%
Starwood Hotels & Resorts Worldwide, Inc.		75,832	$	4,038,812
Real Estate - 95.21%
AMB Property Corp., REIT		91,640		5,116,261
Apartment Investment & Management
Company, Class A, REIT		85,363		4,374,000
Archstone-Smith Trust, REIT		179,880		9,566,018
Avalon Bay Communities, Inc., REIT		72,124		8,727,004
BioMed Realty Trust, Inc., REIT		45,730		1,424,032
Boston Properties, Inc., REIT		83,742		8,510,699
BRE Properties, Inc., Class A, REIT		33,630		1,987,197
Brookfield Properties Corp.		75,100		2,632,255
Digital Realty Trust, Inc., REIT		63,468		1,898,328
Entertainment Properties Trust, REIT		25,843		1,288,532
Equity Lifestyle Properties, Inc., REIT		30,161		1,352,118

The accompanying notes are an integral part of the financial statements. 322

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Real Estate Securities Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Real Estate (continued)
Equity Office Properties Trust, REIT		247,850	$	9,192,757
Equity Residential, REIT		154,910		7,725,362
Essex Property Trust, Inc., REIT		26,624		3,340,513
Federal Realty Investment Trust, REIT		57,446		4,255,025
FelCor Lodging Trust, Inc., REIT		81,050		1,738,523
General Growth Properties, Inc., REIT		100,104		4,537,714
Highwoods Properties, Inc., REIT		33,540		1,265,800
Host Hotels & Resorts, Inc., REIT		419,300		9,451,022
Innkeepers USA Trust, REIT		40,200		665,712
Kilroy Realty Corp., REIT		25,360		2,005,215
LaSalle Hotel Properties, REIT		27,762		1,219,862
LTC Properties, Inc., REIT		27,581		656,979
Mack-California Realty Corp., REIT		47,997		2,551,041
Nationwide Health Properties, Inc., REIT		70,164		1,828,474
ProLogis, REIT		116,292		6,565,846
Public Storage, Inc., REIT		81,430		7,055,910
Regency Centers Corp., REIT		77,020		5,181,135
Simon Property Group, Inc., REIT		170,293		14,439,143
SL Green Realty Corp., REIT		52,430		5,849,091
Sovran Self Storage, Inc., REIT		21,522		1,163,910
Tanger Factory Outlet Centers, Inc., REIT		23,100		826,980
The Macerich Company, REIT		78,924		5,892,466
Ventas, Inc., REIT		129,816		5,199,131
Vornado Realty Trust, REIT		107,359		11,370,392
Washington Real Estate Investment Trust,
REIT (a)		37,900		1,539,498

				162,393,945

TOTAL COMMON STOCKS (Cost $133,591,003)			$	166,432,757


SHORT TERM INVESTMENTS - 0.92%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	1,572,850	$	1,572,850

TOTAL SHORT TERM INVESTMENTS
(Cost $1,572,850)			$	1,572,850


REPURCHASE AGREEMENTS - 2.89%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$4,925,540 on 9/1/2006,
collateralized by $4,960,000
Federal National Mortgage
Association, 6.125% due
08/17/2026 (valued at $5,028,200,
including interest) (c)	$	4,925,000	$	4,925,000

TOTAL REPURCHASE AGREEMENTS
(Cost $4,925,000)			$	4,925,000

Total Investments (Real Estate Securities Fund)
(Cost $140,088,853) - 101.39%			$	172,930,607
Liabilities in Excess of Other Assets - (1.39)%				(2,368,972)

TOTAL NET ASSETS - 100.00%			$	170,561,635

Real Return Bond Fund
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 104.72%
Treasury Inflation Protected
Securities (d) - 104.15%
0.875% due 04/15/2010	$	81,928,651	$	77,832,218
1.875% due 07/15/2013 to 07/15/2015 ***		127,367,340		123,904,893
2.00% due 07/15/2014 to 01/15/2026 ***		160,950,546		157,188,235
2.375% due 04/15/2011 to 01/15/2025 ***		71,021,483		72,452,718
2.50% due 07/15/2016 (a)***		2,009,260		2,054,703
3.00% due 07/15/2012 ***		31,369,520		32,650,024
3.375% due 01/15/2007 ***		24,843,058		24,832,375
3.50% due 01/15/2011 ***		49,631,840		52,165,794
3.625% due 01/15/2008 (a)***		53,369,716		54,068,112
3.625% due 04/15/2028 ***		3,763,200		4,687,683
3.875% due 01/15/2009		28,403,201		29,348,488
3.875% due 04/15/2029 ***		76,764,752		99,758,175

				730,943,418
U.S. Treasury Bonds - 0.47%
4.50% due 02/15/2036 (a)***		3,500,000		3,294,102
U.S. Treasury Notes - 0.10%
4.50% due 02/28/2011 (a)***		700,000		694,532

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $739,265,272)			$	734,932,052


U.S. GOVERNMENT AGENCY OBLIGATIONS - 5.14%
Federal National Mortgage
Association - 4.48%
5.482% due 10/01/2044 (b)***		239,508		241,982
5.50% due 03/01/2034 to 09/01/2035 ***		10,679,170		10,489,027
5.50% TBA **		14,700,000		14,424,375
6.00% TBA **		6,300,000		6,305,909

				31,461,293
Small Business Administration - 0.66%
4.504% due 02/01/2014 ***		1,634,331		1,575,998
4.88% due 11/01/2024 ***		3,141,621		3,060,709

				4,636,707

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $35,271,697)			$	36,098,000


FOREIGN GOVERNMENT OBLIGATIONS - 8.19%
Canada - 0.07%
Government of Canada
3.00% due 12/01/2036 ***	CAD	425,608		509,614
France - 3.08%
Government of France
zero coupon due 09/21/2006 ***	EUR	9,370,000		11,967,901
zero coupon due 12/07/2006 ***		7,620,000		9,670,344

				21,638,245
Netherlands - 4.83%
Kingdom of Netherlands
zero coupon due 10/31/2006 ***		26,590,000		33,850,572

The accompanying notes are an integral part of the financial statements. 323

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Real Return Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Russia - 0.21%
Russian Federation, Series REGS
5.00% due 03/31/2030 ***	$	1,300,000	$	1,446,770

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $57,091,363)			$	57,445,201


CORPORATE BONDS - 1.07%
Banking - 0.20%
Wachovia Bank NA, Series BKNT
5.3081% due 12/02/2010 (b)***		1,400,000		1,400,255
Cable and Television - 0.20%
CSC Holdings, Inc.
7.875% due 12/15/2007 ***		1,400,000		1,426,250
Crude Petroleum & Natural Gas - 0.06%
Pemex Project Funding Master Trust
9.25% due 03/30/2018 ***		350,000		430,500
Financial Services - 0.23%
Citigroup, Inc.
5.525% due 01/30/2009 (b)***		600,000		600,167
General Electric Capital Corp., MTN
5.34% due 12/12/2008 (b)***		500,000		500,322
Rabobank Nederland
5.5269% due 01/15/2009 (b)***		500,000		500,030

				1,600,519

Gas & Pipeline Utilities - 0.02%
El Paso Corp.
7.625% due 08/16/2007 ***		100,000		101,250
Hotels & Restaurants - 0.22%
Park Place Entertainment Corp.
8.875% due 09/15/2008 (a)***		1,500,000		1,573,125
Paper - 0.14%
Georgia Pacific Corp.
7.345% due 12/20/2012 (b)*** (f)		995,000		996,640

TOTAL CORPORATE BONDS (Cost $7,557,094)			$	7,528,539


MUNICIPAL BONDS - 0.03%
New York - 0.03%
New York City Municipal Finance Authority Water &
Sewer System Revenue, Series D
4.75% due 06/15/2038 ***		200,000		202,958

TOTAL MUNICIPAL BONDS (Cost $202,086)			$	202,958


COLLATERALIZED MORTGAGE
OBLIGATIONS - 0.15%
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-11, Class 1A1
4.90% due 12/25/2035 (b)***		177,741		178,772
Lehman XS Trust, Series 2006-10N, Class 1A1A
5.4044% due 07/25/2046 (b)***		880,341		872,617

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $1,057,131)			$	1,051,389

Real Return Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES - 0.10%
Merrill Lynch Mortgage Investors, Inc.,
Series 2006-WMC1, Class A2A
5.4044% due 01/25/2037 (b)***	$	348,101	$	348,119
Residential Asset Securities Corp.,
Series 2006-KS3, Class AI1
5.3944% due 04/25/2036 (b)***		164,186		164,241
Soundview Home Equity Loan Trust,
Series 2006-1, Class A1
5.3944% due 02/25/2036 (b)***		106,472		106,492
Soundview Home Equity Loan Trust,
Series 2006-2, Class A1
5.3944% due 03/25/2036 (b)***		65,154		65,165

TOTAL ASSET BACKED SECURITIES
(Cost $683,913)			$	684,017


OPTIONS - 0.03%
Call Options - 0.03%
Over The Counter European Style Call
Expiration 06/07/2007 at $5.25		25,000,000		177,011
Expiration 06/07/2007 at $5.25		6,000,000		42,483

				219,494


TOTAL OPTIONS (Cost $132,078)			$	219,494


SHORT TERM INVESTMENTS - 10.33%
Government of France
zero coupon due 09/28/2006 ***	EUR	46,240,000	$	59,029,491
State Street Navigator Securities
Lending Prime Portfolio (c)	$	11,227,436		11,227,436
Total SA
5.26% due 09/01/2006 ***		1,200,000		1,200,000
United States Treasury Bills
zero coupon due 09/14/2006 to
11/30/2006 * **		1,055,000		1,049,652

TOTAL SHORT TERM INVESTMENTS
(Cost $69,870,298)			$	72,506,579


REPURCHASE AGREEMENTS - 1.23%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$8,637,948 on 09/01/2006,
collateralized by $9,050,000
Federal National Mortgage
Association, 4.25% due
08/15/2010 (valued at $8,812,438,
including interest) (c)	$	8,637,000	$	8,637,000

TOTAL REPURCHASE AGREEMENTS
(Cost $8,637,000)			$	8,637,000

Total Investments (Real Return Bond Fund)
(Cost $919,767,932) - 130.99%			$	919,305,229
Liabilities in Excess of Other Assets - (30.99)%				(217,507,823)

TOTAL NET ASSETS - 100.00%			$	701,797,406

The accompanying notes are an integral part of the financial statements. 324

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 98.20%
Advertising - 2.29%
inVentiv Health, Inc. *	177,190	$	5,515,925
Apparel & Textiles - 3.81%
Hartmarx Corp. * (a)	323,290		1,930,041
Warnaco Group, Inc. * (a)	360,050		7,247,807

			9,177,848
Auto Parts - 2.66%
LKQ Corp. * (a)	307,690		6,390,721
Banking - 6.80%
Boston Private Financial Holdings, Inc. (a)	212,060		5,293,018
First Community Bancorp	86,880		4,657,637
Placer Sierra Bancshares	133,340		3,168,158
Tierone Corp.	95,160		3,245,908

			16,364,721
Chemicals - 4.94%
Arch Chemicals, Inc. (a)	149,300		4,141,582
Cytec Industries, Inc. (a)	145,150		7,743,753

			11,885,335
Coal - 0.78%
James River Coal Company * (a)	127,780		1,882,199
Computers & Business Equipment - 5.07%
Avocent Corp. * (a)	271,170		8,197,469
Parametric Technology Corp. * (a)	248,700		4,006,557

			12,204,026
Construction Materials - 1.98%
Clarcor, Inc. (a)	158,860		4,757,857
Cosmetics & Toiletries - 4.53%
Intermediate Parfums, Inc. (a)	194,010		3,148,782
Playtex Products, Inc. * (a)	588,900		7,744,035

			10,892,817
Crude Petroleum & Natural Gas - 3.12%
Petroquest Energy, Inc. * (a)	624,820		7,516,585
Domestic Oil - 2.81%
Forest Oil Corp. * (a)	87,120		2,950,755
Mariner Energy, Inc. *	201,520		3,808,728

			6,759,483
Electronics - 7.63%
Daktronics, Inc. (a)	367,400		7,667,638
Trimble Navigation, Ltd. *	218,270		10,688,682

			18,356,320
Healthcare Products - 10.78%
Cantel Medical Corp. * (a)	300,920		4,252,000
Hologic, Inc. * (a)	138,530		5,981,725
Inverness Medical Innovations, Inc. * (a)	219,390		7,408,800
Kensey Nash Corp. * (a)	165,970		4,494,468
SurModics, Inc. * (a)	108,510		3,795,680

			25,932,673
Healthcare Services - 1.65%
Air Methods Corp. * (a)	170,650		3,976,145

Small Cap Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Industrial Machinery - 2.82%
Presstek, Inc. * (a)		304,730	$	2,501,834
Watts Water Technologies, Inc., Class A (a)		138,430		4,292,714

				6,794,548
Insurance - 5.48%
James River Group, Inc. *		48,820		1,376,236
National Interstate Corp.		137,590		3,820,874
Philadelphia Consolidated Holding Corp. * (a)		220,930		7,988,829

				13,185,939
Internet Software - 1.95%
Lionbridge Technologies, Inc. * (a)		658,270		4,686,882
Leisure Time - 3.47%
Gaylord Entertainment Company * (a)		190,770		8,340,464
Medical-Hospitals - 2.63%
IRIS International, Inc. *		180,000		1,765,800
Lifepoint Hospitals, Inc. *		133,970		4,561,679

				6,327,479
Petroleum Services - 1.85%
Hercules Offshore, Inc. * (a)		98,110		3,131,671
Metretek Technologies, Inc. * (a)		114,810		1,309,982

				4,441,653
Publishing - 1.46%
Courier Corp.		95,510		3,518,588
Railroads & Equipment - 1.94%
Genesee & Wyoming, Inc., Class A * (a)		187,480		4,666,377
Retail Trade - 7.39%
Big Lots, Inc. * (a)		257,730		4,729,346
Build A Bear Workshop, Inc. * (a)		178,720		3,901,458
Cost Plus, Inc. * (a)		287,230		2,924,001
New York & Company, Inc. * (a)		357,810		4,086,190
Tractor Supply Company *		50,000		2,129,000

				17,769,995
Sanitary Services - 1.55%
Aqua America, Inc. (a)		157,560		3,732,596
Semiconductors - 2.03%
Silicon Image, Inc. *		419,630		4,871,904
Software - 6.78%
Emageon, Inc. * (a)		157,460		2,426,459
Secure Computing Corp. *		633,450		4,022,407
Take-Two Interactive Software, Inc. * (a)		277,070		3,380,254
Transaction Systems Architects, Inc., Class A *		195,260		6,476,774

				16,305,894

TOTAL COMMON STOCKS (Cost $228,223,230)			$	236,254,974


SHORT TERM INVESTMENTS - 23.24%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	55,917,662	$	55,917,662

TOTAL SHORT TERM INVESTMENTS
(Cost $55,917,662)			$	55,917,662

The accompanying notes are an integral part of the financial statements. 325

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 1.61%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$3,866,424 on 09/01/2006,
collateralized by $4,050,000
Federal National Mortgage
Association, 4.25% due
08/15/2010 (valued at $3,943,688,
including interest) (c)	$	3,866,000	$	3,866,000

TOTAL REPURCHASE AGREEMENTS
(Cost $3,866,000)			$	3,866,000

Total Investments (Small Cap Fund)
(Cost $288,006,892) - 123.05%			$	296,038,636
Liabilities in Excess of Other Assets - (23.05)%				(55,447,397)

TOTAL NET ASSETS - 100.00%			$	240,591,239



Small Cap Index Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 95.73%
Advertising - 0.41%
24/7 Real Media, Inc. * (a)		4,713	$	42,794
Aquantive, Inc. *		7,189		178,287
inVentiv Health, Inc. *		2,777		86,448
Marchex, Inc., Class B * (a)		2,218		36,420
ValueClick, Inc. *		9,682		170,887

				514,836
Aerospace - 1.22%
AAR Corp. * (a)		3,427		76,456
ARGON ST, Inc. * (a)		1,340		34,465
Aviall, Inc. *		3,236		154,551
BE Aerospace, Inc. *		7,320		174,655
Curtiss Wright Corp. (a)		4,172		129,708
EDO Corp. (a)		1,667		38,891
Esterline Technologies Corp. *		2,391		83,757
GenCorp, Inc. * (a)		5,283		72,747
HEICO Corp. (a)		2,077		68,811
Innovative Solutions & Support, Inc. * (a)		1,380		20,231
Integral Systems, Inc. (a)		1,160		36,470
K&F Industries Holdings, Inc. *		1,836		34,480
Moog, Inc., Class A *		3,514		114,732
MTC Technologies, Inc. *		1,086		22,806
Orbital Sciences Corp., Class A *		5,215		94,339
Sequa Corp., Class A *		654		60,037
Teledyne Technologies, Inc. *		3,249		124,567
TransDigm Group, Inc. *		1,092		24,712
Triumph Group, Inc.		1,517		66,687
Woodward Governor Company		2,886		97,172

				1,530,274
Agriculture - 0.19%
Delta & Pine Land Company		3,411		138,009

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Agriculture (continued)
Tejon Ranch Company * (a)	1,047	$	45,429
The Andersons, Inc. (a)	1,197		49,089

			232,527
Air Freight - 0.05%
ABX Air, Inc. *	5,919		32,850
ExpressJet Holdings, Inc. * (a)	4,852		33,916

			66,766
Air Travel - 0.52%
Airtran Holdings, Inc. *	8,455		96,810
Alaska Air Group, Inc. *	3,665		138,794
Frontier Airlines Holdings, Inc. * (a)	3,693		25,629
JetBlue Airways Corp. * (a)	16,143		165,304
Mesa Air Group, Inc. * (a)	3,637		28,732
Republic Airways Holdings, Inc. *	3,122		49,765
SkyWest, Inc.	5,944		143,667

			648,701
Aluminum - 0.18%
Aleris International, Inc. *	2,970		152,272
Century Aluminum Company *	2,181		75,702

			227,974
Amusement & Theme Parks - 0.03%
Great Wolf Resorts, Inc. *	2,794		33,835
Apparel & Textiles - 1.74%
Bebe Stores, Inc. (a)	2,258		50,308
Brown Shoe, Inc.	2,708		86,521
Carter's, Inc. * (a)	4,603		106,329
Cherokee, Inc.	955		35,163
Columbia Sportswear Company * (a)	1,284		62,685
Crocs, Inc. * (a)	980		26,479
Deckers Outdoor Corp. * (a)	1,067		43,758
G & K Services, Class A	2,120		70,342
Guess?, Inc. *	1,986		81,029
Hartmarx Corp. *	3,678		21,958
Iconix Brand Group, Inc. * (a)	3,389		50,225
Interface, Inc., Class A *	4,585		58,275
Joseph A. Bank Clothiers, Inc. * (a)	1,734		41,495
Kellwood Company (a)	2,495		68,388
K-Swiss, Inc., Class A	2,549		70,123
Maidenform Brands, Inc. *	1,525		27,130
Movado Group, Inc.	1,816		40,842
Oakley, Inc. (a)	2,416		39,743
Oxford Industries, Inc. (a)	1,494		61,373
Phillips-Van Heusen Corp.	5,241		202,512
Quiksilver, Inc. *	11,587		162,218
Skechers United States of America, Inc.,
Class A *	1,067		24,157
Stage Stores, Inc.	2,580		68,009
Stride Rite Corp.	3,984		54,780
The Gymboree Corp. *	3,179		106,655
Timberland Company, Class A *	4,776		135,686

The accompanying notes are an integral part of the financial statements. 326

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Apparel & Textiles (continued)
True Religion Apparel, Inc. * (a)	1,339	$	27,182
Under Armour, Inc., Class A * (a)	1,975		68,019
Unifirst Corp.	986		30,605
Volcom, Inc. * (a)	1,356		31,717
Warnaco Group, Inc. *	4,545		91,491
Wolverine World Wide, Inc.	5,365		135,359

			2,180,556
Auto Parts - 0.83%
Accuride Corp. *	2,482		27,079
Aftermarket Technology Corp. *	2,223		44,860
American Axle & Manufacturing Holdings, Inc. (a)	4,899		81,764
ArvinMeritor, Inc. (a)	6,689		99,332
Commercial Vehicle Group, Inc. *	2,139		41,967
CSK Auto Corp. *	4,256		48,816
Federal Signal Corp.	4,636		72,368
Fuel Systems Solutions, Inc. *	1,223		16,853
Keystone Automotive Industries, Inc. *	1,612		55,437
Lear Corp. (a)	6,351		129,179
LKQ Corp. *	4,273		88,750
Miller Industries, Inc. *	1,082		19,411
Modine Manufacturing Company	3,240		75,460
Pep Boys - Manny, Moe & Jack	5,243		67,320
Superior Industries International, Inc. (a)	2,288		38,690
Titan International, Inc. (a)	1,653		29,126
Visteon Corp. *	12,106		103,749

			1,040,161
Auto Services - 0.14%
Dollar Thrifty Automotive Group, Inc. *	2,371		101,194
Lithia Motors, Inc., Class A	1,637		41,776
Midas, Inc. *	1,672		32,705

			175,675
Automobiles - 0.27%
Americas Car Mart, Inc. * (a)	1,069		16,869
Group 1 Automotive, Inc.	2,360		106,908
Monaco Coach Corp.	2,723		28,755
Monro Muffler Brake, Inc.	1,254		40,416
Rush Enterprises, Inc., Class A *	2,286		40,005
Tenneco, Inc. *	4,316		98,189

			331,142
Banking - 9.27%
1st Source Corp.	1,317		39,444
Alabama National BanCorp	1,522		103,207
Amcore Financial, Inc.	2,220		66,711
Americanwest BanCorp	1,559		34,485
Ameris Bancorp (a)	1,535		40,340
Anchor BanCorp Wisconsin, Inc.	2,043		59,696
Arrow Financial Corp.	1,474		39,769
Bancorp, Inc. *	1,273		29,674
Bank Granite Corp.	1,819		39,581
Bank Mutual Corp.	6,099		75,079
Bank of the Ozarks, Inc. (a)	1,316		42,007

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
BankAtlantic Bancorp, Inc., Class A	4,556	$	64,103
BankFinancial Corp. (a)	2,697		47,036
BankUnited Financial Corp., Class A	3,061		78,882
Banner Corp.	1,325		54,881
Berkshire Hill Bancorp, Inc.	1,160		43,291
Boston Private Financial Holdings, Inc.	3,393		84,689
Brookline Bancorp, Inc.	6,224		83,090
Camden National Corp. (a)	913		39,716
Capital City Bank Group, Inc. (a)	1,373		44,142
Capital Corp of the West	1,204		40,707
Capitol Bancorp, Ltd.	1,349		56,887
Cardinal Financial Corp.	2,746		30,508
Cascade Bancorp (a)	2,191		77,868
Cathay General Bancorp, Inc. (a)	4,899		182,684
Centennial Bank Holdings, Inc. * (a)	5,792		57,688
Center Financial Corp.	1,414		34,502
Central Pacific Financial Corp.	2,945		106,580
Chemical Financial Corp. (a)	2,599		76,722
Chittenden Corp.	4,460		128,671
Citizens Banking Corp.	4,160		104,832
Citizens First Bancorp, Inc.	1,063		25,140
City Bank Lynnwood WA	945		48,072
CoBiz, Inc. (a)	1,661		37,838
Columbia Bankcorp Oregon (a)	1,399		34,625
Columbia Banking System, Inc.	1,634		51,112
Community Bank Systems, Inc.	2,956		64,648
Community Banks, Inc. (a)	2,467		64,438
Community Trust Bancorp, Inc.	1,591		61,126
Corus Bankshares, Inc. (a)	3,688		80,435
CVB Financial Corp.	5,977		89,296
Digital Insight Corp. *	3,278		85,261
Dime Community Bancorp, Inc.	2,884		41,212
Doral Financial Corp. (a)	8,497		42,570
Downey Financial Corp. (a)	1,949		119,649
F.N.B. Corp. (a)	5,662		92,687
Fidelity Bankshares, Inc. (a)	2,445		92,641
First BanCorp Puerto Rico	6,621		60,847
First Charter Corp.	3,137		76,198
First Commonwealth Financial Corp. (a)	7,031		90,419
First Community Bancorp	1,870		100,251
First Community Bancshares, Inc.	1,239		42,188
First Financial BanCorp.	3,492		54,126
First Financial Bankshares, Inc. (a)	2,092		81,274
First Financial Corp. (a)	1,624		53,657
First Financial Holdings, Inc.	1,457		50,325
First Merchants Corp.	2,065		50,324
First Midwest BanCorp, Inc., Illinois	4,771		178,197
First Niagara Financial Group, Inc.	10,664		159,533
First Place Financial Corp.	1,996		46,966
First Republic Bank	2,077		88,522
First State BanCorp.	1,938		49,593
FirstFed Financial Corp. * (a)	1,589		80,817

The accompanying notes are an integral part of the financial statements. 327

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
FirstMerit Corp.	7,503	$	172,644
Flag Financial Corp.	1,544		38,538
Flagstar Bancorp, Inc. (a)	4,039		58,727
Flushing Financial Corp.	2,249		39,425
FNB Corp. of Virginia (a)	1,076		38,069
Franklin Bank Corp. * (a)	2,481		49,322
Frontier Financial Corp. (a)	2,604		106,478
GB&T Bancshares, Inc. (a)	1,726		36,350
Glacier Bancorp, Inc. (a)	3,214		104,391
Great Southern Bancorp, Inc. (a)	1,243		34,642
Greater Bay Bancorp	4,790		136,371
Greenhill & Company, Inc. (a)	1,667		91,735
Hancock Holding Company	2,580		133,747
Hanmi Financial Corp.	3,920		76,518
Harleysville National Corp. (a)	2,911		60,162
Heartland Financial USA, Inc. (a)	1,646		44,327
Heritage Commerce Corp. (a)	1,576		36,926
Horizon Financial Corp. (a)	1,222		36,587
IBERIABANK Corp.	1,056		61,565
Independent Bank Corp. - MA	799		27,286
Independent Bank Corp. - MI	2,419		60,722
Integra Bank Corp.	1,941		50,117
Interchange Financial Services Corp. (a)	2,090		47,380
International Bancshares Corp.	4,465		127,297
Irwin Financial Corp. (a)	2,031		38,670
ITLA Capital Corp.	736		38,603
KNBT Bancorp, Inc.	3,171		51,370
Lakeland Bancorp, Inc. (a)	2,295		33,970
Lakeland Financial Corp.	1,625		40,056
Macatawa Bank Corp. (a)	1,617		37,628
MAF Bancorp, Inc.	3,319		136,975
MainSource Financial Group, Inc.	2,228		37,765
MB Financial, Inc.	2,329		85,940
Mercantile Bank Corp.	1,031		41,776
Mid-State Bancshares	2,295		62,126
Midwest Banc Holdings, Inc. (a)	1,885		45,183
Nara Bancorp, Inc.	2,220		41,070
National Penn Bancshares, Inc. (a)	4,522		92,475
Netbank, Inc.	4,655		28,582
Newalliance Bancshares, Inc.	10,437		152,171
Northwest Bancorp, Inc. (a)	1,918		51,019
Old National Bancorp (a)	6,458		120,829
Old Second Bancorp, Inc.	1,637		49,699
Omega Financial Corp. (a)	1,488		45,726
Oriental Financial Group, Inc.	2,507		30,736
Pacific Capital Bancorp	4,489		125,512
Park National Corp. (a)	1,161		120,291
Partners Trust Financial Group, Inc.	4,906		53,770
Peoples Bancorp, Inc.	1,378		41,671
PFF Bancorp, Inc.	2,374		85,678
Pinnacle Financial Partners, Inc. * (a)	1,623		57,373
Placer Sierra Bancshares	1,232		29,272

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
PremierWest Bancorp (a)	1,875	$	28,950
PrivateBancorp, Inc. (a)	1,708		75,835
Prosperity Bancshares, Inc.	2,506		88,412
Provident Bankshares Corp.	3,249		121,773
Provident Financial Services, Inc.	6,531		121,803
Provident New York Bancorp (a)	4,385		61,171
R & G Financial Corp., Class B	3,021		21,751
Renasant Corp. (a)	1,719		52,481
Republic Bancorp, Inc.	7,256		93,820
S & T Bancorp, Inc. (a)	2,661		82,677
S.Y. Bancorp, Inc. (a)	1,457		41,029
Sandy Spring Bancorp, Inc.	1,628		59,406
SCBT Financial Corp.	1,178		45,848
Seacoast Banking Corp. of Florida	1,461		44,955
Security Bank Corp.	1,727		38,685
Shore Bancshares, Inc. (a)	1,209		34,324
Signature Bank *	2,796		91,849
Simmons First National Corp., Class A (a)	1,632		47,034
Smithtown Bancorp, Inc. (a)	1,055		29,424
Southwest Bancorp, Inc.	1,651		43,834
State National Bancshares, Inc. (a)	1,136		43,168
Sterling Bancorp	2,028		39,404
Sterling Bancshares, Inc.	4,405		91,360
Sterling Financial Corp., Pennsylvania (a)	2,661		59,580
Sterling Financial Corp., Spokane	3,403		112,503
Suffolk Bancorp (a)	1,266		44,107
Susquehanna Bancshares, Inc.	4,544		111,192
SVB Financial Group *	3,339		150,889
Texas Capital Bancshares, Inc. *	2,287		45,397
Texas Regional Bancshares, Inc., Class A	4,352		166,551
Texas United Bancshares, Inc. (a)	1,004		33,303
Tierone Corp.	1,864		63,581
Tompkins Trustco, Inc.	856		38,400
Trico Bancshares	677		16,675
TrustCo Bank Corp. (a)	7,595		83,545
Trustmark Corp.	4,458		140,739
UCBH Holdings, Inc. (a)	8,956		162,462
Umpqua Holdings Corp. (a)	5,355		146,566
Union Bankshares Corp.	1,026		43,420
United Bankshares, Inc.	3,594		133,948
United Community Banks, Inc. (a)	3,297		103,526
Univest Corp. of Pennsylvania (a)	1,420		42,401
Vineyard National Bancorp Company (a)	1,193		32,485
Virginia Commerce Bancorp, Inc. * (a)	1,681		37,251
Virginia Financial Group, Inc.	979		42,645
W Holding Company, Inc. (a)	10,369		52,363
Washington Trust Bancorp, Inc.	1,450		38,266
Wesbanco, Inc.	2,223		67,424
West Bancorp. (a)	2,126		36,957
West Coast Bancorp	1,708		52,162
Westamerica Bancorp (a)	3,009		143,920
Western Alliance Bancorp * (a)	1,243		45,879

The accompanying notes are an integral part of the financial statements. 328

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
Willow Grove Bancorp, Inc.	2,097	$	34,433
Wintrust Financial Corp.	2,458		123,662
Yardville National Bancorp	1,207		43,609

			11,595,555
Biotechnology - 1.99%
Affymetrix, Inc. * (a)	6,334		134,978
Alnylam Pharmaceuticals, Inc. * (a)	3,036		39,529
Applera Corp. - Celera Genomics Group *	7,208		100,335
Arena Pharmaceuticals, Inc. * (a)	4,444		54,528
Bio Reference Labs, Inc. *	1,097		24,759
Bio-Rad Laboratories, Inc., Class A *	1,771		130,009
Coley Pharmaceutical Group, Inc. * (a)	1,880		19,496
Combinatorx, Inc. * (a)(e)	2,729		20,604
Cotherix, Inc. * (a)	1,785		12,192
Cytokinetics, Inc. *	2,468		16,832
deCODE genetics, Inc. * (a)	5,910		33,332
Digene Corp. *	1,642		68,389
Exelixis, Inc. *	7,897		76,838
Genitope Corp. * (a)	2,518		7,327
Genomic Health, Inc. *	1,386		19,626
Genta, Inc. * (a)	13,804		21,120
Geron Corp. * (a)	6,197		43,503
Human Genome Sciences, Inc. * (a)	12,311		138,252
ICOS Corp. * (a)	6,163		151,486
Integra LifeSciences Holdings Corp. *	1,840		70,766
Intermune, Inc. * (a)	2,462		42,445
Keryx Biopharmaceuticals, Inc. * (a)	4,090		56,156
Lexicon Genetics, Inc. * (a)	6,564		27,437
Martek Biosciences Corp. * (a)	3,009		90,481
Medarex, Inc. *	11,502		123,531
Metabasis Therapeutics, Inc. *	2,432		14,324
MGI Pharma, Inc. * (a)	7,368		111,478
Momenta Pharmaceuticals, Inc. *	2,063		32,740
Monogram Biosciences, Inc. * (a)	13,591		24,464
Myogen, Inc. * (a)	3,987		138,748
Myriad Genetics, Inc. * (a)	3,716		93,978
Nabi Biopharmaceuticals * (a)	5,784		34,299
Nektar Therapeutics * (a)	8,435		147,781
Neurocrine Biosciences, Inc. *	3,541		41,040
Panacos Pharmaceuticals, Inc. *	5,100		28,815
PRA International * (a)	1,704		44,270
Progenics Pharmaceuticals, Inc. *	2,108		47,725
Sangamo Biosciences, Inc. * (a)	2,747		15,191
Sirna Therapeutics, Inc. * (a)	4,089		23,103
Solexa, Inc. *	2,438		21,211
Tanox, Inc. * (a)	2,313		34,718
Telik, Inc. * (a)	4,922		87,759
Trimeris, Inc. *	2,008		18,735

			2,484,330
Broadcasting - 0.66%
Acacia Research - Acacia Technologies *	2,765		29,751

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Broadcasting (continued)
Belo Corp., Class A	8,560	$	139,528
Citadel Broadcasting Corp.	3,509		32,248
CKX, Inc. * (a)	4,789		47,746
Cox Radio, Inc., Class A *	4,433		70,307
Cumulus Media, Inc., Class A * (a)	3,792		38,072
Emmis Communications Corp., Class A *	3,180		38,891
Entercom Communications Corp.	3,037		77,170
Entravision Communications Corp., Class A *	6,516		48,414
Gray Television, Inc.	4,582		29,279
Journal Communications, Inc.	4,385		48,103
Mediacom Communications Corp., Class A *	5,472		37,429
Radio One, Inc., Class D *	7,328		44,994
Sinclair Broadcast Group, Inc., Class A	4,741		36,601
Spanish Broadcasting System, Inc., Class A * (a)	5,083		22,111
Westwood One, Inc.	6,689		49,030
World Wrestling Entertainment, Inc., Class A	2,270		39,226

			828,900
Building Materials & Construction - 0.83%
Apogee Enterprises, Inc.	2,909		43,664
Beacon Roofing Supply, Inc. * (a)	4,172		76,681
Builders FirstSource, Inc. *	1,514		23,013
Dycom Industries, Inc. *	3,809		77,132
ElkCorp (a)	1,974		55,608
EMCOR Group, Inc. *	2,967		164,491
Griffon Corp. * (a)	2,838		67,147
Home Solutions of America, Inc. * (a)	3,815		20,181
Infrasource Services, Inc. * (a)	2,535		43,830
Interline Brands, Inc. *	2,629		65,830
Levitt Corp., Class A (a)	1,732		21,425
LSI Industries, Inc.	2,116		38,786
NCI Building Systems, Inc. * (a)	1,933		105,039
Perini Corp. *	2,113		50,649
Sterling Construction Company, Inc. *	921		18,190
Trex Company, Inc. * (a)	1,165		31,373
U.S. Concrete, Inc. *	3,485		21,363
WCI Commmunities, Inc. * (a)	3,144		48,543
Williams Scotsman International, Inc. * (a)	2,842		59,654

			1,032,599
Business Services - 4.85%
ABM Industries, Inc. (a)	4,293		77,231
Administaff, Inc.	2,163		74,732
ADVO, Inc.	2,995		85,627
AMERCO, Inc. * (a)	979		69,382
Arbitron, Inc.	2,857		107,195
Banta Corp.	2,306		108,497
BearingPoint, Inc. * (a)	17,391		145,389
Black Box Corp.	1,659		63,938
Bowne & Company, Inc.	3,251		50,130
Bright Horizons Family Solutions, Inc. *	2,664		106,294
Catalina Marketing Corp.	4,365		125,057
CDI Corp. (a)	1,308		27,403

The accompanying notes are an integral part of the financial statements. 329

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Business Services (continued)
Clark, Inc.	2,002	$	25,846
Coinstar, Inc. *	2,667		70,009
Compass Diversified Trust (a)	1,577		23,198
Compucredit Corp. * (a)	1,982		57,775
COMSYS IT Partners, Inc. * (a)	1,693		31,236
Cornell Corrections, Inc. * (a)	1,355		23,902
CoStar Group, Inc. *	1,602		64,529
CRA International, Inc. *	1,135		51,064
CSG Systems International, Inc. *	4,517		121,598
Deluxe Corp.	4,857		87,037
Diamond Management & Technology
Consultants, Inc. *	3,001		27,939
eFunds Corp. *	4,435		102,981
Electro Rent Corp. *	2,036		32,800
Ennis Business Forms, Inc.	2,734		56,457
Euronet Worldwide, Inc. * (a)	3,325		80,798
Exponent, Inc. *	1,858		28,539
Ezcorp, Inc., Class A *	1,142		44,846
First Consulting Group *	2,533		22,746
Forrester Research, Inc. *	1,366		40,324
FTI Consulting, Inc. *	3,782		84,490
Gartner Group, Inc., Class A *	5,342		83,282
Geo Group, Inc. *	1,260		56,284
Gevity HR, Inc. (a)	2,519		64,763
Global Cash Access, Inc. *	3,184		49,129
GSI Commerce, Inc. * (a)	3,764		49,384
Healthcare Services Group, Inc.	2,761		62,647
Heidrick & Struggles International, Inc. *	1,784		63,439
Hudson Highland Group, Inc. * (a)	2,479		24,840
Huron Consulting Group, Inc. *	1,681		63,475
ICT Group, Inc. *	729		21,105
Infocrossing, Inc. * (a)	1,998		23,936
Informatica Corp. *	8,147		119,272
Insight Enterprises, Inc. *	4,674		84,179
Intervoice Brite, Inc. *	4,082		29,023
Jackson Hewitt Tax Service, Inc.	3,370		106,492
John H. Harland Company	2,596		96,987
Kanbay International, Inc. *	3,195		59,139
Kelly Services, Inc., Class A	2,037		55,630
Kendle International, Inc. *	1,193		31,519
Kenexa Corp. *	1,515		38,723
Kforce, Inc. *	2,870		35,330
Korn/Ferry International *	4,031		82,313
Labor Ready, Inc. *	5,165		88,476
LECG Corp. *	2,436		41,290
Lightbridge, Inc. *	2,746		32,677
MAXIMUS, Inc.	2,024		53,879
McGrath Rentcorp	2,160		49,248
MPS Group, Inc. *	9,740		136,944
Navigant Consulting Company *	4,031		79,370
NCO Group, Inc. *	3,067		80,355
Net 1 UEPS Technologies, Inc. * (a)	4,566		110,862

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Business Services (continued)
On Assignment, Inc. *	2,764	$	26,341
Paxar Corp. *	4,008		78,036
Perot Systems Corp., Class A *	8,139		116,876
PHH Corp. *	5,022		126,102
Pre-Paid Legal Services, Inc. (a)	990		37,184
Quest Software, Inc. *	6,295		87,689
Resource America, Inc.	1,741		35,865
Resources Connection, Inc. *	4,557		111,191
Rewards Network, Inc. * (a)	2,773		12,063
Rollins, Inc.	2,869		60,938
Scansource, Inc. *	2,458		76,296
Sirva, Inc. * (a)	5,092		15,429
SITEL Corp. *	6,592		19,776
Sonicwall, Inc. *	6,131		62,904
Sotheby's Holdings, Inc., Class A	5,736		159,461
Source Interlink Companies * (a)	3,347		36,984
Spherion Corp. *	5,555		41,496
SRA International, Inc., Class A *	3,610		101,116
StarTek, Inc.	1,334		15,168
TALX Corp.	3,044		75,187
Teletech Holdings, Inc. *	3,120		47,112
Tetra Tech, Inc. *	5,452		90,503
The BISYS Group, Inc. *	11,379		117,090
Tyler Technologies, Inc. * (a)	3,878		50,724
Viad Corp.	2,115		74,934
Volt Information Sciences, Inc. * (a)	821		35,007
Watson Wyatt Worldwide, Inc., Class A	4,010		159,037
Wind River Systems, Inc. *	7,144		72,654
Wireless Facilities, Inc. * (a)	6,656		14,577
Zhone Technologies, Inc. * (a)	11,755		19,043

			6,069,764
Cable and Television - 0.35%
Charter Communications, Inc., Class A * (a)	37,503		52,129
Gemstar-TV Guide International, Inc. *	23,479		75,367
Lin TV Corp. *	3,216		23,477
LodgeNet Entertainment Corp. *	1,739		33,058
Superior Essex, Inc. *	1,931		68,956
Time Warner Telecom, Inc., Class A * (a)	7,211		129,582
TiVo, Inc. * (a)	7,283		60,085

			442,654
Cellular Communications - 0.41%		��
Brightpoint, Inc. *	4,778		79,506
Dobson Communications Corp., Class A *	14,071		96,668
iPCS, Inc. *	1,603		83,228
Novatel Wireless, Inc * (a)	2,866		31,956
RF Micro Devices, Inc. * (a)	18,017		119,272
Syniverse Holdings, Inc. *	2,260		37,855
USA Mobility, Inc. * (a)	2,682		61,284

			509,769
Chemicals - 1.60%
A. Schulman, Inc.	2,526		59,588

The accompanying notes are an integral part of the financial statements. 330

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Chemicals (continued)
Albany Molecular Research, Inc. *	2,635	$	25,823
American Vanguard Corp. (a)	1,791		26,955
Arch Chemicals, Inc.	2,294		63,636
Balchem Corp.	1,380		27,476
Cabot Microelectronics Corp. *	2,328		73,192
Calgon Carbon Corp. * (a)	4,334		20,240
Cambrex Corp.	2,558		57,683
CF Industries Holdings, Inc.	5,144		81,584
Ferro Corp.	4,050		69,174
Georgia Gulf Corp.	3,238		85,937
H.B. Fuller Company	5,554		106,803
Hercules, Inc. *	10,743		167,591
Innospec, Inc.	1,313		36,016
MacDermid, Inc.	2,692		77,126
Minerals Technologies, Inc.	1,886		98,053
Newmarket Corp.	1,630		100,946
Olin Corp.	6,850		102,955
OM Group, Inc. *	2,774		110,960
Omnova Solutions, Inc. *	4,637		26,060
Pioneer Companies, Inc. *	1,246		30,353
PolyOne Corp. *	8,799		76,287
Rockwood Holdings, Inc. *	3,339		70,052
Sensient Technologies Corp.	4,546		91,465
Terra Industries, Inc. * (a)	8,953		65,715
Tronox, Inc.	3,995		51,535
UAP Holding Corp.	4,854		101,109
W. R. Grace & Company * (a)	6,424		65,525
Zoltek Companies, Inc. * (a)	1,366		34,901

			2,004,740
Coal - 0.09%
International Coal Group, Inc. * (a)	10,739		67,011
James River Coal Company * (a)	1,637		24,113
Westmoreland Coal Company * (a)	847		19,261

			110,385
Colleges & Universities - 0.18%
Corinthian Colleges, Inc. *	8,245		99,930
DeVry, Inc. *	5,786		129,317

			229,247
Commercial Services - 0.65%
CBIZ, Inc. * (a)	5,936		46,301
Cenveo, Inc. *	5,062		106,302
Chemed Corp.	2,482		97,816
Coinmach Service Corp.	3,000		29,700
Color Kinetics, Inc. * (a)	1,387		23,094
DynCorp International, Inc. *	2,508		27,287
Live Nation, Inc. *	5,987		125,607
Medifast, Inc. * (a)	1,276		15,159
Morningstar, Inc. * (a)	1,341		51,307
PeopleSupport, Inc. *	1,970		33,470
Perficient, Inc. * (a)	1,837		24,799
Providence Service Corp. * (a)	1,344		32,014

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Commercial Services (continued)
TNS, Inc. * (a)	2,349	$	37,255
Vertrue, Inc. * (a)	784		33,234
Waste Services, Inc. * (a)	2,831		27,404
Wright Express Corp. *	3,862		103,888

			814,637
Computers & Business Equipment - 3.37%
3Com Corp. *	36,857		163,277
3D Systems Corp. * (a)	1,443		23,261
ADE Corp. *	1,013		32,588
Agilysys, Inc.	2,931		39,627
Avanex Corp. * (a)	16,012		28,181
Avocent Corp. *	4,629		139,935
Benchmark Electronics, Inc. *	6,008		149,840
Blue Coat Systems, Inc. * (a)	1,497		25,464
Brocade Communications Systems, Inc. *	25,767		159,755
CACI International, Inc., Class A *	2,863		151,911
CalAmp Corp. *	2,208		14,860
Cogent, Inc. * (a)	4,051		57,848
Digi International, Inc. *	2,429		32,209
Echelon Corp. * (a)	3,208		28,262
Electronics for Imaging, Inc. *	5,477		126,190
EMS Technologies, Inc. *	1,642		30,016
Extreme Networks, Inc. *	11,444		42,228
Falconstor Software, Inc. * (a)	3,861		27,336
FileNET Corp. *	3,998		139,690
Foundry Networks, Inc. *	13,766		167,532
Gateway, Inc. * (a)	26,478		52,956
Gerber Scientific, Inc. *	2,299		35,451
Henry, Jack & Associates, Inc.	7,505		143,796
Hypercom Corp. *	5,123		47,849
IHS, Inc., Class A *	2,192		65,782
InPhonic, Inc. * (a)	2,709		19,180
Intergraph Corp. *	2,781		103,898
Intermec, Inc. * (a)	4,750		142,310
Internap Network Services Corp. * (a)	2,929		35,002
Ixia *	4,066		40,863
Komag, Inc. * (a)	2,906		104,500
Kronos, Inc. *	3,029		92,445
L-1 Identity Solutions, Inc. * (a)	6,268		94,587
Merge Technologies, Inc. * (a)	2,201		16,309
Micros Systems, Inc. *	3,687		176,460
Mindspeed Technologies, Inc. * (a)	11,362		21,701
Mobility Electronics, Inc. * (a)	2,711		17,594
MTS Systems Corp.	1,776		59,620
Ness Technologies, Inc. *	2,782		32,160
Netscout Systems, Inc. *	2,849		20,142
Palm, Inc. * (a)	8,602		125,245
Parametric Technology Corp. *	10,515		169,397
Pegasus Wireless Corp. *	5,195		17,819
Plexus Corp. *	4,314		85,503
Quantum Corp. *	18,195		40,211

The accompanying notes are an integral part of the financial statements. 331

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Computers & Business Equipment
(continued)
Rackable Systems, Inc. * (a)	2,618	$	72,676
Radiant Systems, Inc. *	2,721		30,094
RadiSys Corp. * (a)	2,065		48,879
SI International, Inc. *	1,294		37,384
Sigma Designs * (a)	2,377		33,207
Silicon Storage Technology, Inc. *	8,714		36,599
Sonic Solutions * (a)	2,492		37,405
Standard Microsystems Corp. *	2,104		59,059
Stratasys, Inc. * (a)	1,066		25,467
Sybase, Inc. *	8,495		195,980
Sykes Enterprises, Inc. *	2,809		56,489
Synaptics, Inc. * (a)	2,411		60,974
Transmeta Corp. * (a)	19,612		23,142
Trident Microsystems, Inc. * (a)	5,396		111,319
Witness Systems, Inc. *	3,205		52,081

			4,221,545
Construction & Mining Equipment - 0.45%
A.S.V., Inc. * (a)	1,995		30,663
Astec Industries, Inc. *	1,608		37,933
Bucyrus International, Inc., Class A	2,964		153,031
Carbo Ceramics, Inc. (a)	1,912		76,365
Kaman Corp., Class A	2,400		42,984
Layne Christensen Company * (a)	1,207		36,596
Matrix Service Company * (a)	2,250		29,678
Washington Group International, Inc. *	2,727		161,466

			568,716
Construction Materials - 0.72%
Ameron International Corp.	851		59,689
Applied Industrial Technologies, Inc.	4,258		96,273
Clarcor, Inc.	4,917		147,264
Columbus McKinnon Corp. *	1,781		32,931
Comfort Systems USA, Inc.	3,872		50,452
Granite Construction, Inc.	3,262		175,006
Regal-Beloit Corp.	2,916		125,855
Simpson Manufacturing, Inc. (a)	3,489		91,935
Standex International Corp.	1,348		39,699
Universal Forest Products, Inc.	1,587		77,382

			896,486
Containers & Glass - 0.38%
Graphic Packaging Corp. * (a)	7,244		28,107
Greif, Inc., Class A	1,567		111,022
Interpool, Inc.	1,283		27,841
Longview Fibre Company	4,833		100,720
Mobile Mini, Inc. *	3,383		91,070
Silgan Holdings, Inc.	2,256		79,862
TAL International Group, Inc. *	1,584		37,161

			475,783
Cosmetics & Toiletries - 0.23%
Chattem, Inc. * (a)	1,664		57,708
Elizabeth Arden, Inc. *	2,594		37,691

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Cosmetics & Toiletries (continued)
Nu Skin Enterprises, Inc., Class A	5,519	$	95,589
Playtex Products, Inc. *	5,434		71,457
Revlon, Inc., Class A * (a)	16,035		20,845

			283,290
Crude Petroleum & Natural Gas - 0.93%
Allis-Chalmers Energy, Inc. *	1,306		24,096
Arena Resources, Inc. * (a)	1,100		42,460
Bill Barrett Corp. * (a)	2,682		77,563
Bois d'Arc Energy, Inc. * (a)	1,717		28,142
Complete Production Services, Inc. *	2,507		55,655
Edge Petroleum Corp. *	1,824		34,419
EXCO Resources, Inc. *	4,972		66,426
Gasco Energy, Inc. * (a)	7,679		22,423
GMX Resources, Inc. * (a)	820		26,125
Goodrich Petroleum Corp. * (a)	1,241		39,315
Harvest Natural Resources, Inc. * (a)	3,754		48,014
Hydril *	1,713		112,116
Parallel Petroleum Corp. * (a)	3,366		80,717
Penn Virginia Corp.	1,807		128,279
Petroquest Energy, Inc. *	4,016		48,312
Quest Resource Corp. * (a)	2,194		25,867
SulphCo, Inc. * (a)	3,473		23,165
Swift Energy Company *	2,776		121,478
Toreador Resources Corp. * (a)	1,276		26,936
Transmeridian Exploration, Inc. * (a)	6,885		35,113
Vaalco Energy, Inc. * (a)	5,613		46,139
Western Refining, Inc.	2,225		52,443

			1,165,203
Domestic Oil - 1.45%
Atlas America, Inc. *	1,700		78,183
Berry Petroleum Company, Class A (a)	3,415		106,651
Brigham Exploration Company *	4,630		32,549
Carrizo Oil & Gas, Inc. * (a)	2,043		56,918
Comstock Resources, Inc. *	4,123		118,578
Delta Petroleum Corp. * (a)	5,086		106,297
Encore Aquisition Company *	5,026		135,953
Energy Partners, Ltd. * (a)	3,675		91,691
Exploration Company * (a)	2,947		34,568
GeoGlobal Resources, Inc. * (a)	3,324		17,983
Giant Industries, Inc. *	1,405		114,789
Houston Exploration Company *	2,763		177,247
Mariner Energy, Inc. *	6,992		132,149
McMoran Exploration Company * (a)	2,493		46,370
Meridian Resource Corp. *	8,901		29,907
Oil States International, Inc. *	4,689		149,860
Stone Energy Corp. *	2,594		114,577
Syntroleum Corp. * (a)	4,148		19,827
Union Drilling, Inc. *	1,576		22,458
Warren Resources, Inc. * (a)	5,123		74,130
Whiting Petroleum Corp. *	3,506		157,770

			1,818,455

The accompanying notes are an integral part of the financial statements. 332

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Drugs & Health Care - 2.18%
Abaxis, Inc. * (a)	1,930	$	46,359
Abiomed, Inc. * (a)	2,367		35,316
Acadia Pharmaceuticals, Inc. * (a)	2,574		22,291
Alpharma Inc., Class A	3,994		83,634
Ariad Pharmaceuticals, Inc. * (a)	6,239		29,635
Arrow International, Inc.	2,177		70,339
Bioenvision, Inc. * (a)	3,838		23,220
Biomarin Pharmaceutical, Inc. *	8,097		134,734
Candela Corp. *	2,325		24,250
Cell Genesys, Inc. * (a)	4,809		23,997
CNS, Inc.	1,328		37,450
Conmed Corp. *	2,704		55,405
Conor Medsystems, Inc. * (a)	2,574		69,498
CV Therapeutics, Inc. * (a)	4,229		47,576
Datascope Corp.	1,313		43,237
Dendreon Corp. * (a)	6,971		33,670
Depome, Inc. * (a)	4,204		20,305
Diversa Corp. *	2,997		27,572
Durect Corp. *	5,760		20,966
Emisphere Technologies, Inc. * (a)	2,513		20,783
Enzon Pharmaceuticals, Inc. * (a)	4,290		35,092
Gentiva Health Services, Inc. *	2,734		49,403
Healthextras, Inc. *	2,619		80,482
I-Flow Corp. * (a)	2,431		29,318
Illumina, Inc. *	3,939		132,666
Immucor, Inc. *	6,448		133,925
Invacare Corp.	2,946		68,377
K-V Pharmaceutical Company, Class A *	3,663		81,795
Landauer, Inc.	969		46,434
Luminex Corp. * (a)	3,063		58,228
Mannatech, Inc. (a)	1,655		23,964
Matria Healthcare, Inc. * (a)	1,993		53,811
Maxygen, Inc. * (a)	3,205		26,473
Medical Action, Inc. *	1,150		28,106
Mentor Corp. (a)	3,397		164,890
Meridian Bioscience, Inc.	2,026		48,340
Molina Healthcare, Inc. *	1,186		43,929
New River Pharmaceuticals, Inc. * (a)	1,515		39,511
Northfield Laboratories, Inc. * (a)	2,633		28,542
Option Care, Inc. (a)	2,722		35,985
OraSure Technologies, Inc. * (a)	4,439		30,452
Pain Therapeutics, Inc. * (a)	3,498		28,334
Parexel International Corp. *	2,588		85,663
Perrigo Company	7,358		118,758
Quidel Corp. * (a)	2,990		34,206
Res-Care, Inc. *	2,230		44,711
Savient Pharmaceuticals, Inc. *	6,125		39,690
Vital Signs, Inc.	701		38,029
West Pharmaceutical Services, Inc.	3,067		122,404
Xenoport, Inc. *	1,930		42,344
Zymogenetics, Inc. * (a)	3,502		67,729

			2,731,828

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Educational Services - 0.22%
eCollege.com * (a)	1,827	$	22,691
INVESTools, Inc. *	4,435		39,915
Leapfrog Enterprises, Inc., Class A *	3,454		26,458
Strayer Education, Inc.	1,370		144,398
Universal Technical Institute, Inc. *	2,236		41,254

			274,716
Electrical Equipment - 1.69%
A.O. Smith Corp.	1,935		77,613
Aaon, Inc.	1,073		26,085
American Science & Engineering, Inc. * (a)	874		40,169
Anaren, Inc. *	1,741		39,277
Anixter International, Inc. *	3,098		168,810
Audiovox Corp., Class A *	1,834		27,162
Baldor Electric Company	3,092		91,554
Capstone Turbine Corp. * (a)	10,486		20,028
China BAK Battery, Inc. * (a)	2,937		18,797
Cohu, Inc.	2,229		37,380
DTS, Inc. *	1,792		32,937
Encore Wire Corp. * (a)	2,207		82,895
Excel Technology, Inc. *	1,288		37,713
FLIR Systems, Inc. * (a)	6,520		180,604
General Cable Corp. *	4,763		183,518
Genlyte Group, Inc. *	2,352		154,127
Greatbatch, Inc. * (a)	2,089		51,097
Lamson & Sessions Company *	1,346		34,013
Littelfuse, Inc. *	2,137		77,167
Methode Electronics, Inc., Class A	3,778		29,997
Metrologic Instruments, Inc. * (a)	1,425		22,999
Plug Power, Inc. * (a)	7,063		33,479
Power-One, Inc. * (a)	6,732		45,710
Sirf Technology Holdings, Inc. * (a)	4,836		127,332
Universal Electronics, Inc. *	1,677		30,169
Varian, Inc. *	2,932		136,866
Vicor Corp. (a)	1,953		24,530
W.H. Brady Company, Class A	4,256		162,579
Watsco, Inc.	2,631		115,606

			2,110,213
Electrical Utilities - 1.56%
Allete, Inc.	2,395		110,026
Avista Corp.	4,669		113,177
Black Hills Corp.	3,196		111,253
CH Energy Group, Inc. (a)	1,612		79,181
Cleco Corp.	4,811		120,083
Duquesne Light Holdings, Inc.	7,338		144,485
El Paso Electric Company *	4,668		111,612
Empire District Electric Company	3,004		67,890
IDACORP, Inc.	4,040		155,217
ITC Holdings Corp. (a)	1,434		48,856
MGE Energy, Inc.	2,119		71,220
NorthWestern Corp.	3,427		119,397
Otter Tail Corp.	2,864		86,350

The accompanying notes are an integral part of the financial statements. 333

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electrical Utilities (continued)
Pike Electric Corp. *	1,603	$	28,117
PNM Resources, Inc.	6,444		184,749
UIL Holding Corp.	2,373		86,709
Unisource Energy Corp.	3,377		116,540
Westar Energy, Inc.	8,176		199,413

			1,954,275
Electronics - 1.98%
Adaptec, Inc. *	10,847		44,690
Anadigics, Inc. * (a)	4,662		34,778
Analogic Corp.	1,327		75,413
Ansoft Corp. *	1,627		39,113
Bel Fuse, Inc., Class B (a)	1,068		39,484
Belden CDT, Inc.	4,003		143,067
Bookham, Inc * (a)	5,955		18,937
Checkpoint Systems, Inc. *	3,713		67,391
Comtech Group, Inc. * (a)	1,511		16,848
CTS Corp.	3,463		50,906
Cubic Corp.	1,582		31,846
Daktronics, Inc. (a)	3,699		77,198
Electro Scientific Industries, Inc. *	2,808		55,907
Enersys * (a)	4,445		78,988
FEI Company * (a)	2,235		46,399
Franklin Electric, Inc.	2,171		104,664
Hutchinson Technology, Inc. * (a)	2,455		50,671
Identix, Inc. * (a)	0		0
II-VI, Inc. *	2,322		48,925
Imation Corp.	3,275		129,788
Integrated Electrical Services, Inc. * (a)	1,613		26,421
Itron, Inc. *	2,391		133,848
Kemet Corp. *	8,106		66,712
LoJack Corp. *	1,866		38,962
Maxwell Technologies, Inc. * (a)	1,506		29,728
Measurement Specialties, Inc. * (a)	1,479		29,787
Medis Technologies, Ltd. * (a)	1,949		39,038
Mentor Graphics Corp. *	7,618		110,461
Mercury Computer Systems, Inc. *	2,129		26,442
MoSys, Inc. * (a)	2,706		18,374
Multi-Fineline Electronix, Inc. * (a)	859		19,396
OSI Systems, Inc. * (a)	1,547		30,460
Park Electrochemical Corp.	1,937		50,556
Photon Dynamics, Inc. *	1,826		24,523
Portalplayer, Inc. *	2,420		29,427
Portland General Electric Company	2,504		63,852
RAE Systems, Inc. * (a)	4,641		14,016
Rogers Corp. *	1,651		95,791
Supertex, Inc. * (a)	1,167		41,277
Sycamore Networks, Inc. *	17,160		62,977
Taser International, Inc. * (a)	6,000		46,620
Technitrol, Inc.	3,839		108,682
TTM Technologies, Inc. *	3,996		51,389
Universal Display Corp. * (a)	2,378		25,231

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electronics (continued)
X-Rite, Inc.	3,045	$	27,070
Zoran Corp. *	4,618		82,293
Zygo Corp. *	1,854		24,677

			2,473,023
Energy - 0.70%
Alon USA Energy, Inc.	1,167		40,927
Evergreen Solar, Inc. * (a)	6,288		64,012
Fuelcell Energy, Inc. * (a)	5,021		48,904
Hanover Compressor Company * (a)	9,662		181,839
Headwaters, Inc. * (a)	3,972		87,861
KFx, Inc. * (a)	6,711		107,510
New Jersey Resources Corp.	2,749		136,515
Ormat Technologies, Inc. (a)	780		28,384
Pacific Ethanol, Inc. * (a)	2,386		44,213
Quantum Fuel Systems Technologies
Worldwide, Inc. * (a)	5,093		15,126
Rosetta Resources, Inc. * (a)	4,847		89,718
SunPower Corp., Class A. *	1,000		32,060

			877,069
Financial Services - 2.46%
Accredited Home Lenders Holding Company *	1,713		54,696
Ace Cash Express, Inc. *	1,228		36,361
Advance America Cash Advance Centers, Inc. (a)	6,444		100,140
Advanta Corp., Class B	1,899		64,300
Asset Acceptance Capital Corp. *	1,671		24,714
Asta Funding, Inc. (a)	1,175		38,834
Bankrate, Inc. * (a)	981		27,880
Calamos Asset Management, Inc.	2,234		58,575
Cass Information Systems, Inc. (a)	486		25,797
CharterMac (a)	5,204		104,757
City Holding Company	1,840		72,459
Cohen & Steers, Inc. (a)	1,296		37,079
Commercial Capital Bancorp, Inc.	4,726		75,096
Credit Acceptance Corp. *	980		27,871
Delphi Financial Group, Inc.	3,999		155,481
Dollar Financial Corp. *	1,206		23,023
Federal Agricultural Mortgage Corp., Class C (a)	1,215		34,081
Financial Federal Corp.	2,648		69,378
Fremont General Corp.	6,280		89,678
Friedman, Billings, Ramsey Group, Inc.	13,830		114,098
GFI Group, Inc. * (a)	1,135		52,778
Harbor Florida Bancshares, Inc.	2,053		90,927
Heartland Payment Systems, Inc. (a)	1,304		35,221
Interactive Data Corp. *	3,344		65,342
International Securities Exchange, Inc.	3,613		153,733
Investors Bancorp, Inc. *	5,127		73,675
Investors Real Estate Trust, SBI (a)	5,543		53,047
Knight Capital Group, Inc. *	9,917		173,151
LaBranche & Company, Inc. * (a)	5,030		41,749
MarketAxess Holdings, Inc. *	3,378		31,821
Marlin Business Services Corp. *	1,471		32,877

The accompanying notes are an integral part of the financial statements. 334

John Hancock Funds II

Portfolio of investments �� August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Financial Services (continued)
National Financial Partners Corp.	3,535	$	130,159
NBT Bancorp, Inc. (a)	3,409		79,702
Ocwen Financial Corp. * (a)	3,339		49,250
optionsXpress Holdings, Inc.	1,953		51,012
Piper Jaffray Companies, Inc. *	1,974		115,637
Portfolio Recovery Associates, Inc. * (a)	1,549		61,526
Stifel Financial Corp. * (a)	1,251		39,994
SWS Group, Inc.	1,615		39,729
UMB Financial Corp.	3,062		106,772
United Community Financial Corp.	3,231		41,066
United Panam Financial Corp. *	1,105		18,862
Waddell & Reed Financial, Inc., Class A	8,053		186,991
World Acceptance Corp. *	1,787		71,426
WSFS Financial Corp.	745		47,121

			3,077,866
Food & Beverages - 1.38%
Bob Evans Farms, Inc.	3,437		97,405
Buffalo Wild Wings, Inc. * (a)	773		26,939
Chiquita Brands International, Inc.	4,010		67,809
Coca-Cola Bottling Company	558		32,699
Cosi, Inc. * (a)	3,750		19,650
Denny's Corp. *	9,368		31,476
Diamond Foods, Inc. (a)	1,691		25,247
Domino's Pizza, Inc.	3,559		87,018
Fisher Communications, Inc. *	915		39,253
Flowers Foods, Inc.	4,969		134,908
Gold Kist, Inc. *	4,934		99,469
Hain Celestial Group, Inc. *	2,987		70,344
Imperial Sugar Company (a)	1,158		35,620
J & J Snack Foods Corp.	1,413		44,750
Jones Soda Company * (a)	2,601		19,794
Lance, Inc.	2,995		68,316
MGP Ingredients, Inc.	983		23,680
Nuco2, Inc. * (a)	1,583		43,137
Peets Coffee & Tea, Inc. * (a)	1,457		36,731
Performance Food Group Company * (a)	3,338		82,148
Pilgrim's Pride Corp.	3,800		92,568
Premium Standard Farms, Inc.	1,513		25,600
Ralcorp Holdings, Inc. *	2,556		126,445
Ruth's Chris Steak House, Inc. * (a)	1,758		34,949
Sanderson Farms, Inc. (a)	1,645		51,423
Seabord Corp. (a)	34		47,600
Spartan Stores, Inc.	2,274		41,000
The Steak & Shake Company *	2,793		44,884
Tootsie Roll Industries, Inc.	3,445		99,939
TreeHouse Foods, Inc. *	3,017		76,934

			1,727,735
Forest Products - 0.06%
Caraustar Industries, Inc. *	3,166		23,967
Deltic Timber Corp.	1,003		47,572

			71,539

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Funeral Services - 0.11%
Alderwoods Group, Inc. *	3,974	$	78,645
Stewart Enterprises, Inc., Class A	10,241		59,193

			137,838
Furniture & Fixtures - 0.31%
American Woodmark Corp. (a)	1,165		36,732
Ethan Allen Interiors, Inc. (a)	3,090		104,288
Furniture Brands International, Inc. (a)	4,152		79,511
Kimball International, Inc., Class B	2,509		44,259
La-Z-Boy, Inc. (a)	4,860		67,797
Sealy Corp.	1,680		23,150
Stanley Furniture Company, Inc.	1,351		33,694

			389,431
Gas & Pipeline Utilities - 1.42%
American States Water Company (a)	1,687		64,831
Aquila, Inc. *	35,092		160,721
Aurora Oil & Gas Corp. *	6,791		30,967
California Water Service Group	1,729		65,840
Crosstex Energy, Inc. (a)	872		80,398
Maverick Tube Corp. *	3,488		224,174
Nicor, Inc. (a)	4,133		180,447
Northwest Natural Gas Company	2,803		107,215
Peoples Energy Corp. (a)	3,598		152,483
Piedmont Natural Gas, Inc. (a)	7,252		189,060
South Jersey Industries, Inc.	2,892		83,839
Southwest Gas Corp.	3,882		130,823
Southwest Water Company (a)	2,482		32,192
The Laclede Group, Inc.	2,200		71,698
Transmontaigne, Inc. *	4,340		49,216
WGL Holdings, Inc.	4,693		145,812

			1,769,716
Gold - 0.04%
Royal Gold, Inc. (a)	1,855		55,260
Healthcare Products - 2.58%
Adeza Biomedical Corp. *	1,573		26,694
Align Technology, Inc. * (a)	5,471		34,194
American Medical Systems Holdings, Inc. *	6,574		115,439
Angiodynamics, Inc. *	1,237		22,414
Arthrocare Corp. * (a)	2,483		113,250
Aspect Medical Systems, Inc. * (a)	1,610		31,105
Biosite, Inc. * (a)	1,636		71,984
Bruker BioSciences Corp. *	3,837		27,089
Cerus Corp. *	3,017		19,550
Computer Programs & Systems, Inc.	966		32,863
Conceptus, Inc. * (a)	2,218		38,261
Cyberonics, Inc. * (a)	2,053		33,423
Cypress Biosciences, Inc. *	3,425		24,660
DJO, Inc. *	2,160		83,311
Encore Medical Corp. *	5,896		37,675
Foxhollow Technologies, Inc. *	1,760		55,141
Haemonetics Corp. *	2,510		116,916
Health Tronics, Inc. *	3,697		24,326

The accompanying notes are an integral part of the financial statements. 335

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Products (continued)
Hologic, Inc. *	4,310	$	186,106
ICU Medical, Inc. * (a)	1,396		61,438
Intralase Corp. * (a)	2,045		38,466
Inverness Medical Innovations, Inc. * (a)	2,606		88,005
Kensey Nash Corp. * (a)	1,188		32,171
Kyphon, Inc. *	4,174		151,141
LCA-Vision, Inc. (a)	1,971		86,783
LifeCell Corp. * (a)	3,138		94,705
Mannkind Corp. * (a)	2,089		38,479
Merit Medical Systems, Inc. * (a)	2,786		39,060
Molecular Devices Corp. *	1,644		39,472
Natus Medical, Inc. * (a)	1,985		25,964
Nuvasive, Inc. * (a)	3,156		64,887
Owens & Minor, Inc.	3,813		122,664
PetMed Express, Inc. *	1,986		24,825
Polymedica Corp.	2,198		89,217
PSS World Medical, Inc. *	6,408		124,315
Sirona Dental Systems, Inc. * (a)	1,656		50,376
SonoSite, Inc. * (a)	1,568		49,753
Spectranetics Corp. *	3,051		33,256
Stereotaxis, Inc. * (a)	2,409		26,812
STERIS Corp.	6,392		152,002
SurModics, Inc. * (a)	1,526		53,379
Symmetry Medical, Inc. *	3,281		45,507
The Medicines Company * (a)	4,715		106,370
Thermogenesis Corp. * (a)	5,974		25,091
Thoratec Corp. * (a)	5,012		73,476
Tripath Imaging, Inc. *	3,338		29,274
USANA Health Sciences, Inc. * (a)	902		40,374
Ventana Medical Systems, Inc. *	2,726		127,141
Viasys Healthcare, Inc. *	3,063		81,231
Wright Medical Group, Inc. *	3,251		74,350
Zoll Medical Corp. *	1,004		38,062

			3,222,447
Healthcare Services - 1.48%
Air Methods Corp. * (a)	1,072		24,978
Amedisys, Inc. * (a)	1,546		62,567
Amerigroup Corp. *	4,890		154,231
AMN Healthcare Services, Inc. *	3,106		74,544
Apria Healthcare Group, Inc. *	4,069		82,967
Capital Senior Living Corp. *	2,622		25,145
Cross Country Healthcare, Inc. *	3,169		52,035
Enzo Biochem, Inc. * (a)	2,685		34,314
Five Star Quality Care, Inc. *	3,141		32,195
Genesis HealthCare Corp. *	1,879		85,570
Healthspring, Inc. *	1,828		36,395
Healthways, Inc. *	3,284		169,520
Horizon Health Corp. * (a)	1,631		22,328
Intermagnetics General Corp. * (a)	4,020		109,465
Kindred Healthcare, Inc. *	3,174		98,838
LHC Group, Inc. *	1,304		31,296

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Services (continued)
Magellan Health Services, Inc. *	3,526	$	169,495
National Healthcare Corp. (a)	721		35,307
Odyssey Healthcare, Inc. *	3,380		54,215
Palomar Medical Technologies, Inc. * (a)	1,660		65,902
Per-Se Technologies, Inc. * (a)	3,167		72,176
Phase Forward, Inc. *	3,291		38,801
Radiation Therapy Services, Inc. * (a)	1,219		35,254
Sun Healthcare Group, Inc. *	2,484		26,256
Symbion, Inc. *	1,827		42,240
The Advisory Board Company *	1,769		89,901
United Surgical Partners International, Inc. *	4,229		119,342

			1,845,277
Holdings Companies/Conglomerates - 0.07%
PICO Holdings, Inc. *	1,002		33,958
United Industrial Corp.	903		48,644

			82,602
Homebuilders - 0.24%
Champion Enterprises, Inc. *	7,224		49,267
Hovnanian Enterprises, Inc., Class A * (a)	4,673		123,788
M/I Homes, Inc. (a)	1,153		37,311
Meritage Homes Corp. * (a)	2,126		87,060

			297,426
Hotels & Restaurants - 1.89%
AFC Enterprises, Inc. * (a)	2,653		39,689
Ameristar Casinos, Inc. (a)	2,444		50,908
Applebee's International, Inc.	6,993		145,105
Aztar Corp. *	3,406		178,713
BJ's Restaurants, Inc. * (a)	1,426		26,281
California Pizza Kitchen, Inc. *	1,924		54,949
CBRL Group, Inc.	2,919		110,455
CEC Entertainment, Inc. *	3,143		100,199
Century Casinos, Inc. *	2,410		24,702
Chipotle Mexican Grill, Inc., Class A * (a)	734		36,216
CKE Restaurants, Inc.	5,675		88,133
IHOP Corp.	1,777		82,968
Jack In the Box, Inc. *	3,326		159,581
Krispy Kreme Doughnuts, Inc. * (a)	5,247		43,288
Landry's Restaurants, Inc.	1,546		42,283
Lodgian, Inc. *	2,179		27,259
Lone Star Steakhouse & Saloon, Inc.	1,761		48,040
Luby's Cafeterias, Inc. *	2,337		22,225
Magna Entertainment Corp., Class A * (a)	4,521		19,712
Marcus Corp.	2,126		43,732
McCormick & Schmick's Seafood
Restaurants, Inc. *	1,278		25,330
Morgans Hotel Group Company * (a)	1,839		24,459
MTR Gaming Group, Inc. *	2,734		21,872
O'Charley's, Inc. *	2,409		44,542
P.F. Chang's China Bistro, Inc. * (a)	2,488		87,702
Papa Johns International, Inc. * (a)	2,360		80,240
RARE Hospitality International, Inc. *	3,237		92,708

The accompanying notes are an integral part of the financial statements. 336

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Hotels & Restaurants (continued)
Red Robin Gourmet Burgers, Inc. * (a)	1,588	$	67,029
Ruby Tuesday, Inc.	5,515		142,397
Ryan's Restaurant Group, Inc. *	4,047		63,781
Sonic Corp. *	8,118		178,028
Texas Roadhouse, Inc., Class A * (a)	4,934		59,603
Triarc Companies, Inc.	5,847		85,191
Trump Entertainment Resorts, Inc. * (a)	2,707		48,915

			2,366,235
Household Appliances - 0.19%
Consolidated Tomoka Land Company (a)	607		40,450
Drew Industries, Inc. * (a)	1,790		46,737
Jacuzzi Brands, Inc. *	7,392		73,329
Lifetime Brands, Inc.	1,261		25,170
National Presto Industries, Inc.	555		30,192
Technical Olympic USA, Inc. (a)	1,952		23,736

			239,614
Household Products - 0.48%
Blyth, Inc.	2,562		55,032
Central Garden & Pet Company * (a)	2,088		91,517
iRobot Corp. * (a)	1,160		20,532
Martha Stewart Living
Omnimedia, Inc., Class A * (a)	2,444		46,241
Select Comfort Corp. * (a)	5,061		100,461
Smith & Wesson Holding Corp. * (a)	2,767		27,393
Tempur-Pedic International, Inc. * (a)	4,685		75,194
Tupperware Brands Corp.	5,833		105,052
TurboChef Technologies, Inc. * (a)	1,281		12,925
WD-40 Company	1,810		62,898

			597,245
Housing & Urban Development - 0.02%
Cavco Industries, Inc. *	750		25,515
Industrial Machinery - 1.54%
Actuant Corp., Class A (a)	2,590		116,809
Albany International Corp., Class A	2,593		90,548
Badger Meter, Inc. (a)	1,449		37,920
Briggs & Stratton Corp.	4,807		135,317
Cascade Corp.	1,208		45,904
Ceradyne, Inc. * (a)	2,541		111,982
Circor International, Inc.	1,692		48,543
Cognex Corp.	4,392		112,128
Dionex Corp. *	1,937		97,663
Energy Conversion Devices, Inc. * (a)	3,655		128,108
EnPro Industries, Inc. *	2,037		64,043
Flow International Corp. * (a)	3,611		47,521
Gehl Company *	1,050		27,405
Gorman Rupp Company (a)	1,068		31,773
H&E Equipment Services, Inc. *	1,108		28,886
Kadant, Inc. *	1,468		38,726
Lindsay Manufacturing Company	1,255		35,793
Lufkin Industries, Inc.	1,408		88,704
NACCO Industries, Inc., Class A	518		69,168

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Industrial Machinery (continued)
NATCO Group, Inc. *	1,437	$	52,494
OYO Geospace Corp. *	444		26,724
Presstek, Inc. * (a)	3,088		25,352
Raser Technologies, Inc. * (a)	2,127		7,657
Robbins & Myers, Inc.	1,305		37,584
Rofin Sinar Technologies, Inc. *	1,482		81,154
Tecumseh Products Company, Class A * (a)	1,735		25,765
Tennant Company	1,610		43,567
The Middleby Corp. *	659		51,758
Tredegar Industries, Inc.	3,296		54,384
Valmont Industries, Inc.	1,724		89,924
Watts Water Technologies, Inc., Class A (a)	2,410		74,734

			1,928,038
Industrials - 0.14%
Brookfield Homes Corp. (a)	1,189		28,060
Clean Harbors, Inc. *	1,497		62,560
GrafTech International, Ltd. *	9,433		51,410
Intevac, Inc. *	2,025		34,020

			176,050
Insurance - 2.31%
21st Century Insurance Group	3,307		49,704
Alfa Corp.	3,388		57,257
American Equity Investment Life Holding
Company (a)	5,465		63,230
American Physicians Capital, Inc. *	795		39,217
Argonaut Group, Inc. *	3,052		93,849
Capital Title Group, Inc. *	3,223		25,043
CNA Surety Corp. *	1,688		33,591
Commerce Group, Inc.	5,297		157,798
Direct General Corp.	1,806		24,056
Donegal Group, Inc.	1,606		29,856
Enstar Group, Inc. * (a)	391		37,106
FBL Financial Group, Inc., Class A	1,464		48,546
FPIC Insurance Group, Inc. *	1,153		47,550
Harleysville Group, Inc.	1,421		51,142
Hilb, Rogal and Hamilton Company	3,460		149,714
Horace Mann Educators Corp.	4,279		78,563
Infinity Property & Casualty Corp.	2,073		78,670
James River Group, Inc. *	1,053		29,684
LandAmerica Financial Group, Inc. (a)	1,658		104,852
Meadowbrook Insurance Group, Inc. *	2,672		27,629
Midland Company	1,206		49,928
National Interstate Corp.	1,599		44,404
National Western Life Insurance Company,
Class A *	259		59,648
Navigators Group, Inc. *	1,312		60,457
Ohio Casualty Corp.	6,135		159,203
Phoenix Companies, Inc.	10,711		158,094
PMA Capital Corp., Class A *	3,561		33,295
Presidential Life Corp.	2,164		51,006
ProAssurance Corp. *	3,040		152,912

The accompanying notes are an integral part of the financial statements. 337

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
RLI Corp.	2,219	$	108,509
Safety Insurance Group, Inc.	1,438		73,942
SCPIE Holdings, Inc. *	1,254		29,858
SeaBright Insurance Holdings, Inc. *	1,838		23,269
Selective Insurance Group, Inc.	2,693		140,090
State Auto Financial Corp.	1,471		46,101
Stewart Information Services Corp.	1,693		57,748
Tower Group, Inc.	1,691		49,310
Triad Guaranty, Inc. *	1,159		58,263
U.S.I. Holdings Corp. * (a)	4,492		60,058
United Fire & Casualty Company	2,055		57,499
Universal American Financial Corp. *	3,724		57,089
Zenith National Insurance Corp.	3,538		133,736

			2,891,476
International Oil - 0.15%
ATP Oil & Gas Corp. *	1,956		76,480
Callon Petroleum Company *	2,097		32,441
Parker Drilling Company *	10,404		73,868

			182,789
Internet Content - 0.62%
Audible, Inc. * (a)	2,587		20,541
CMGI, Inc. * (a)	43,851		48,675
CNET Networks, Inc. * (a)	14,137		133,312
Digitas, Inc. *	8,532		76,276
Harris Interactive, Inc. *	5,574		30,824
InfoSpace, Inc. *	2,966		65,934
Internet Cap Group, Inc. *	3,874		34,866
Jupitermedia Corp. * (a)	2,293		16,372
Move, Inc. * (a)	9,450		43,281
NetFlix, Inc. * (a)	3,728		74,597
ProQuest Company *	2,506		33,605
RightNow Technologies, Inc. * (a)	1,527		23,455
Safeguard Scientifics, Inc. * (a)	12,315		24,261
Schawk, Inc., Class A (a)	1,582		30,279
Sohu.com, Inc. *	2,458		53,609
The Knot, Inc. *	1,509		26,287
TheStreet.com, Inc.	1,951		20,993
WebSideStory, Inc. * (a)	1,869		23,680

			780,847
Internet Retail - 0.22%
Ariba, Inc. * (a)	7,108		58,854
Blue Nile, Inc. * (a)	1,394		47,842
Drugstore.com, Inc. * (a)	8,274		26,229
Overstock.com, Inc. * (a)	1,150		21,747
Priceline.com, Inc. *	2,405		80,303
Stamps.com, Inc. * (a)	1,785		33,986

			268,961
Internet Service Provider - 0.42%
C-COR.net Corp. *	4,667		37,103
Cogent Communications Group, Inc. *	2,186		20,286
Covad Communications Group, Inc. * (a)	27,923		42,443

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Internet Service Provider
(continued)
Earthlink, Inc. *	12,569	$	92,382
NETGEAR, Inc. *	3,134		61,646
Online Resources Corp. *	2,437		25,905
Redback Networks, Inc. * (a)	5,231		97,506
Terremark Worldwide, Inc. * (a)	3,736		20,025
TriZetto Group, Inc. *	4,104		56,307
United Online, Inc.	6,101		69,978

			523,581
Internet Software - 1.22%
Agile Software Corp. *	5,739		33,114
Art Technology Group, Inc. *	10,820		29,647
Chordiant Software, Inc. *	8,444		22,546
Click Commerce, Inc. * (a)	1,113		20,379
Cybersource Corp. *	3,013		32,992
DealerTrack Holdings, Inc. *	1,044		22,707
Digital River, Inc. * (a)	3,736		181,345
eResearch Technology, Inc. * (a)	4,736		41,251
Internet Security Systems, Inc. *	3,719		102,868
Interwoven, Inc. *	4,166		45,701
Lionbridge Technologies, Inc. *	5,759		41,004
NIC, Inc. * (a)	4,074		21,307
Openwave Systems, Inc. * (a)	8,893		71,944
RealNetworks, Inc. *	10,104		111,447
RSA Security, Inc. *	7,139		198,821
S1 Corp. *	7,041		35,839
Safenet, Inc. * (a)	2,433		45,740
Sapient Corp. *	7,714		37,567
Stellent, Inc.	2,942		31,509
TIBCO Software, Inc. *	19,847		155,997
VASCO Data Security International, Inc. * (a)	2,587		23,283
Vignette Corp. *	2,894		40,024
WebEx Communications, Inc. *	3,950		141,015
WebMethods, Inc. *	5,185		40,910

			1,528,957
Investment Companies - 0.44%
Apollo Investment Corp.	7,753		154,828
Ares Cap Corp.	3,853		65,694
Capital Southwest Corp. (a)	331		36,182
GAMCO Investors, Inc. (a)	670		25,681
Gladstone Capital Corp. (a)	1,758		39,801
Harris & Harris Group, Inc. * (a)	2,268		26,626
MCG Capital Corp. (a)	5,169		82,911
Medallion Financial Corp.	1,909		22,316
MVC Capital, Inc. *	1,979		27,033
NGP Capital Resources Company (a)	2,263		32,044
Technology Investment Capital Corp.	2,494		37,310

			550,426
Leisure Time - 1.40%
Ambassadors International, Inc. (a)	877		29,344
Arctic Cat, Inc.	1,444		24,014

The accompanying notes are an integral part of the financial statements. 338

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Leisure Time (continued)
Bally Technologies, Inc. * (a)	4,969	$	78,212
Bally Total Fitness Holding Corp. * (a)	4,402		13,206
Blockbuster, Inc., Class A * (a)	18,122		72,307
Bluegreen Corp. * (a)	2,214		25,350
Callaway Golf Company	7,231		96,968
Carmike Cinemas, Inc. (a)	1,369		25,587
Churchill Downs, Inc.	923		37,308
Dover Downs Gaming & Entertainment, Inc.	1,606		21,087
Gaylord Entertainment Company *	3,810		166,573
Isle of Capri Casinos, Inc. * (a)	1,536		31,304
K2, Inc. *	4,615		53,765
Lakes Gaming, Inc. * (a)	2,473		24,037
Life Time Fitness, Inc. *	2,909		130,701
Monarch Casino & Resort, Inc. *	1,110		21,057
Multimedia Games, Inc. * (a)	2,769		26,527
Parkervision, Inc. * (a)	1,823		11,248
Pinnacle Entertainment, Inc. *	4,520		116,526
Polaris Industries, Inc. (a)	3,914		149,123
Progressive Gaming International Corp. * (a)	3,518		25,998
RC2 Corp. *	2,021		67,966
Riviera Holdings Corp. *	1,210		24,018
Shuffle Master, Inc. * (a)	3,325		92,535
Six Flags, Inc. *	6,635		34,635
Speedway Motorsports, Inc.	1,533		57,135
Steinway Musical Instruments, Inc. *	931		23,852
The Nautilus Group, Inc. (a)	3,131		38,762
Topps, Inc.	3,859		33,689
Vail Resorts, Inc. *	2,885		108,534
West Marine, Inc. * (a)	1,637		22,378
WMS Industries, Inc. * (a)	2,577		69,063

			1,752,809
Life Sciences - 0.21%
American Ecology Corp.	1,552		30,155
Dawson Geophysical Company * (a)	921		25,171
Incyte Corp. * (a)	8,015		40,957
Ionatron, Inc. * (a)	3,129		19,181
Pharmanet Development Group, Inc. *	1,781		34,854
Senomyx, Inc. *	2,815		43,632
Symyx Technologies, Inc. *	3,203		73,349

			267,299
Liquor - 0.08%
Boston Beer Company, Inc. *	1,078		34,625
Central European Distribution Corp. * (a)	3,024		69,643

			104,268
Manufacturing - 1.25%
Acuity Brands, Inc.	4,236		181,004
American Railcar Industries, Inc.	908		27,503
AptarGroup, Inc.	3,332		171,598
Barnes Group, Inc.	3,554		58,357
Blout International, Inc. *	3,730		33,756
Coherent, Inc. *	2,939		106,568

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Manufacturing (continued)
ESCO Technologies, Inc. *	2,424	$	123,721
Freightcar America, Inc. (a)	689		40,100
Gen Tek, Inc. *	1,125		33,626
Goodman Global, Inc. *	2,292		28,856
Hexcel Corp. * (a)	8,796		132,116
Input/Output, Inc. * (a)	6,643		66,231
Insteel Industries, Inc.	1,363		28,405
Kaydon Corp.	2,688		102,440
Lancaster Colony Corp.	2,409		106,333
Mine Safety Appliances Company (a)	2,948		104,507
Nordson Corp.	2,813		112,633
Radyne Corp. *	1,966		24,025
Raven Industries, Inc. (a)	1,582		44,185
Reddy Ice Holdings, Inc.	1,757		41,676

			1,567,640
Medical-Hospitals - 0.59%
Advanced Magnetics, Inc. * (a)	801		29,357
AmSurg Corp. *	2,910		70,044
Centene Corp. * (a)	4,081		63,051
Cepheid, Inc. * (a)	5,235		42,665
DexCom, Inc. * (a)	1,710		21,956
EV3, Inc. * (a)	1,437		21,857
Hana Biosciences, Inc. *	2,949		21,823
Hythiam, Inc. * (a)	2,917		16,364
IRIS International, Inc. *	1,884		18,482
MWI Veterinary Supply, Inc. *	559		19,403
Neurometrix, Inc. * (a)	1,210		32,803
Novavax, Inc. * (a)	6,230		26,353
Psychiatric Solutions, Inc. *	5,041		161,362
RehabCare Group, Inc. *	1,797		26,380
Sunrise Senior Living, Inc. * (a)	4,197		123,854
Vital Images, Inc. *	1,306		38,344

			734,098
Metal & Metal Products - 0.61%
A. M. Castle & Company	985		27,836
Ampco-Pittsburgh Corp.	776		22,380
Dynamic Materials Corp. (a)	1,128		41,251
Gibraltar Industries, Inc.	2,318		56,096
L.B. Foster Company * (a)	1,121		25,054
Ladish Company, Inc. *	1,352		47,279
Matthews International Corp., Class A	3,113		110,823
Metal Management, Inc.	2,523		64,538
Mueller Industries, Inc.	3,499		134,082
Mueller Water Products, Inc. *	2,494		42,398
NN, Inc.	2,248		28,235
Quanex Corp.	3,551		121,906
RBC Bearings, Inc. *	2,041		43,412

			765,290
Mining - 0.68%
Alpha Natural Resources, Inc. * (a)	4,858		88,076
AMCOL International Corp. (a)	2,093		48,599

The accompanying notes are an integral part of the financial statements. 339

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Mining (continued)
Brush Engineered Materials, Inc. *	1,870	$	49,966
Cleveland-Cliffs, Inc. (a)	4,162		151,788
Coeur d'Alene Mines Corp. * (a)	26,160		142,049
Compass Minerals International, Inc.	3,099		82,836
Hecla Mining Company * (a)	11,270		73,368
RTI International Metals, Inc. * (a)	2,151		93,289
Stillwater Mining Company *	3,858		36,381
USEC, Inc.	8,198		82,882

			849,234
Mobile Homes - 0.13%
Fleetwood Enterprises, Inc. * (a)	6,081		42,749
Skyline Corp.	771		30,077
Winnebago Industries, Inc. (a)	3,095		90,374

			163,200
Newspapers - 0.11%
Journal Register Company	4,070		29,711
Lee Enterprises, Inc.	4,365		108,077

			137,788
Office Furnishings & Supplies - 0.57%
Acco Brands Corp. *	4,262		92,315
Global Imaging Systems, Inc. *	5,064		111,053
Herman Miller, Inc.	6,210		175,370
IKON Office Solutions, Inc.	10,415		148,414
Knoll, Inc.	3,142		56,022
United Stationers, Inc. *	2,949		135,153

			718,327
Paper - 0.46%
Bowater, Inc. (a)	5,172		117,560
Buckeye Technologies, Inc. *	4,027		32,739
Chesapeake Corp.	2,141		31,044
Mercer International, Inc. * (a)	3,052		28,841
Neenah Paper, Inc.	1,526		51,228
P.H. Glatfelter Company	4,256		61,074
Potlatch Corp.	3,621		138,720
Rock-Tenn Company, Class A	3,086		59,622
Wausau-Mosinee Paper Corp.	4,370		59,476

			580,304
Petroleum Services - 1.44%
Atwood Oceanics, Inc. *	2,553		109,779
Basic Energy Services, Inc. *	1,209		34,577
Bronco Drilling Company, Inc. * (a)	1,377		26,728
Dril-Quip, Inc. *	1,048		80,476
Grey Wolf, Inc. * (a)	18,349		134,131
Gulfmark Offshore, Inc. *	1,596		48,439
Hercules Offshore, Inc. *	1,960		62,563
Hornbeck Offshore Services, Inc. *	2,339		78,614
Lone Star Technologies, Inc. *	2,909		131,865
Metretek Technologies, Inc. * (a)	1,688		19,260
Newpark Resources, Inc. *	8,499		47,084
PetroHawk Energy Corp. *	13,457		150,046

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Petroleum Services (continued)
Petroleum Development Corp. *	1,591	$	67,936
Pioneer Drilling Company *	3,959		55,782
Rentech, Inc. *	13,145		68,880
RPC, Inc. (a)	2,034		41,575
Superior Well Services, Inc. * (a)	1,157		24,910
Universal Compression Holdings, Inc. *	2,867		156,051
Veritas DGC, Inc. *	3,367		200,572
Warrior Energy Service Corp. *	1,109		21,182
W-H Energy Services, Inc. *	2,794		141,013
World Fuel Services Corp.	2,630		94,785

			1,796,248
Pharmaceuticals - 2.20%
Adams Respiratory Therapeutics, Inc. * (a)	2,881		117,545
Adolor Corp. *	4,269		106,512
ADVENTRX Pharmaceuticals, Inc. * (a)	5,876		21,447
Akorn, Inc. * (a)	4,808		18,751
Alexion Pharmaceuticals, Inc. * (a)	2,978		111,824
Alkermes, Inc. *	8,286		135,476
American Oriental Bioengineering, Inc. *	4,554		24,182
Andrx Corp. *	6,968		166,117
Array BioPharma, Inc. *	3,947		33,471
Atherogenics, Inc. *	3,734		52,276
Auxilium Pharmaceuticals, Inc. * (a)	2,103		18,233
AVANIR Pharmaceuticals * (a)	3,276		23,161
AVI BioPharma, Inc. * (a)	5,376		22,203
Bentley Pharmaceuticals, Inc. * (a)	2,017		22,631
Biocryst Pharmaceuticals, Inc. * (a)	2,308		23,588
Bradley Pharmaceuticals, Inc., Class A * (a)	1,597		23,652
Connetics Corp. *	3,310		35,880
Cubist Pharmaceuticals, Inc. *	5,107		119,810
Encysive Pharmaceuticals, Inc. * (a)	5,812		25,631
Hi-Tech Pharmacal Company, Inc. *	976		16,699
Idenix Pharmaceuticals, Inc. * (a)	2,431		24,577
Indevus Pharmaceuticals, Inc. * (a)	5,349		33,806
Isis Pharmaceuticals, Inc. * (a)	6,964		53,205
Medicis Pharmaceutical Corp., Class A (a)	5,113		149,760
Nastech Pharmaceutical Company, Inc. * (a)	2,124		32,242
Noven Pharmaceuticals, Inc. * (a)	2,304		57,508
NPS Pharmaceuticals, Inc. *	4,801		21,412
Nuvelo, Inc. *	4,877		101,003
Onyx Pharmaceuticals, Inc. * (a)	3,875		58,551
OSI Pharmaceuticals, Inc. * (a)	5,356		199,618
Par Pharmaceutical Companies, Inc. * (a)	3,327		59,720
Penwest Pharmaceuticals Company *	2,184		39,094
Peregrine Pharmaceuticals, Inc. * (a)	18,361		25,338
Pharmion Corp. *	2,292		42,585
Pozen, Inc. * (a)	2,549		31,633
Prestige Brands Holdings, Inc. *	3,251		32,575
Regeneron Pharmaceuticals, Inc. *	4,287		68,078
Renovis, Inc. * (a)	2,098		30,924
Rigel Pharmaceuticals, Inc. * (a)	2,504		24,840

The accompanying notes are an integral part of the financial statements. 340

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Pharmaceuticals (continued)
Salix Pharmaceuticals, Ltd. *	4,400	$	59,004
Santarus, Inc. * (a)	4,534		36,363
Sciele Pharma, Inc. * (a)	2,761		48,317
Supergen, Inc. * (a)	4,675		22,767
United Therapeutics Corp. *	2,214		120,862
Valeant Pharmaceuticals International	8,751		172,045
ViroPharma, Inc. *	6,491		81,202

			2,746,118
Plastics - 0.11%
AEP Industries, Inc. *	762		33,376
PW Eagle, Inc. (a)	1,029		35,881
Spartech Corp.	3,080		69,392

			138,649
Publishing - 0.58%
American Greetings Corp., Class A (a)	5,013		122,919
Consolidated Graphics, Inc. *	1,109		68,958
Courier Corp.	1,063		39,161
Media General, Inc., Class A	2,098		82,493
Playboy Enterprises, Inc., Class B * (a)	2,328		22,163
PRIMEDIA, Inc. * (a)	19,214		32,664
Readers Digest Association, Inc., Class A (a)	9,124		116,878
Scholastic Corp. *	3,365		101,152
Sun-Times Media Group, Inc.	7,440		55,874
Valassis Communications, Inc. *	4,496		88,661

			730,923
Railroads & Equipment - 0.38%
Florida East Coast Indiana, Inc. (a)	3,318		180,566
Genesee & Wyoming, Inc., Class A *	3,418		85,074
Greenbrier Company, Inc. (a)	1,326		36,836
RailAmerica, Inc. *	3,963		39,987
Wabtec Corp.	4,553		128,440

			470,903
Real Estate - 7.01%
Aames Investment Corp., REIT (a)	5,037		20,198
Acadia Realty Trust, REIT	3,176		78,257
Affordable Residential Communities, REIT *	3,421		35,510
Alexander's, Inc., REIT *	198		56,974
Alexandria Real Estate Equities, Inc., REIT	2,133		209,077
American Campus Communities, Inc., REIT	1,847		47,967
American Financial Realty Trust, REIT	12,082		138,581
American Home Mortgage Investment Corp.,
REIT (a)	4,137		131,143
Anthracite Capital, Inc., REIT	5,737		73,720
Anworth Mortgage Asset Corp., REIT	4,874		38,163
Ashford Hospitality Trust, Inc., REIT	5,657		67,714
Avatar Holdings, Inc., REIT * (a)	627		34,560
BioMed Realty Trust, Inc., REIT	5,256		163,672
California Coastal Communities, Inc., REIT *	1,135		34,788
Capital Lease Funding, Inc., REIT	3,557		40,656
Cedar Shopping Centers, Inc., REIT	3,202		49,247
Corporate Office Properties Trust, REIT	3,142		147,580

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Real Estate (continued)
Cousins Properties, Inc., REIT	3,627	$	124,660
Crescent Real Estate Equities Company, REIT	7,298		158,002
Deerfield Triarc Capital Corp., REIT	5,174		68,607
DiamondRock Hospitality Company, REIT	6,186		103,925
Digital Realty Trust, Inc., REIT	1,727		51,655
EastGroup Properties, Inc., REIT	2,215		112,987
Education Realty Trust, Inc., REIT (a)	2,660		37,692
Entertainment Properties Trust, REIT	2,588		129,038
Equity Inns, Inc., REIT	5,215		80,207
Equity Lifestyle Properties, Inc., REIT	1,910		85,625
Equity One, Inc., REIT	3,622		91,093
Extra Space Storage, Inc., REIT	4,404		77,070
FelCor Lodging Trust, Inc., REIT	5,656		121,321
Fieldstone Investment Corp., REIT	4,830		41,490
First Industrial Realty Trust, Inc., REIT (a)	4,195		181,727
First Potomac Realty Trust, REIT	2,317		71,850
Franklin Street Properties Corp., REIT (a)	4,683		88,040
Getty Realty Corp., REIT (a)	1,809		54,451
Glenborough Realty Trust, Inc., REIT (a)	3,152		81,353
Glimcher Realty Trust, REIT (a)	3,619		88,304
GMH Communities Trust, REIT	3,861		49,382
Gramercy Captial Corp., REIT	1,907		51,680
Healthcare Realty Trust, Inc., REIT (a)	4,498		162,648
Heritage Property Investment Trust, REIT	2,563		93,191
Hersha Hospitality Trust, REIT (a)	4,052		40,804
Highland Hospitality Corp., REIT	5,688		78,324
Highwoods Properties, Inc., REIT	5,043		190,323
Home Properties, Inc., REIT	3,227		183,552
HomeBanc Corp., Georgia, REIT (a)	5,757		38,572
Impac Mortgage Holdings, Inc., REIT (a)	7,216		65,593
Inland Real Estate Corp., REIT (a)	6,616		106,848
Innkeepers USA Trust, REIT	4,126		68,327
Jer Investors Trust, Inc., REIT	2,922		48,768
Kite Realty Group Trust, REIT	3,067		49,961
KKR Financial Corp., REIT	7,503		179,397
LaSalle Hotel Properties, REIT	3,751		164,819
Lexington Corporate Property Trust, REIT	5,064		106,445
LTC Properties, Inc., REIT	2,467		58,764
Luminent Mortgage Capital, Inc., REIT	4,001		40,530
Maguire Properties, Inc., REIT	3,545		141,481
Medical Properties Trust, Inc., REIT	4,081		54,645
MFA Mortgage Investments, Inc., REIT	7,732		54,356
Mid-America Apartment Communities, Inc.,
REIT	2,270		137,108
MortgageIT Holdings, Inc., REIT (a)	2,851		41,282
National Health Investments, Inc., REIT	2,337		63,894
National Retail Properties, Inc., REIT	5,593		124,388
Nationwide Health Properties, Inc., REIT	7,047		183,645
Newcastle Investment Corp., REIT	4,273		117,337
Newkirk Realty Trust, Inc., REIT	2,180		36,624
NorthStar Realty Finance Corp., REIT	4,252		50,981
Novastar Financial, Inc., REIT (a)	3,106		91,503

The accompanying notes are an integral part of the financial statements. 341

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Real Estate (continued)
Omega Healthcare Investors, REIT	5,580	$	82,417
Parkway Properties, Inc., REIT	1,406		68,922
Pennsylvania Real Estate
Investment Trust, REIT (a)	3,454		146,173
Post Properties, Inc., REIT	3,975		191,595
PS Business Parks, Inc., REIT	1,545		94,430
RAIT Investment Trust, REIT	2,707		75,742
Ramco-Gershenson Properties Trust, REIT (a)	1,884		60,288
Realty Income Corp., REIT (a)	7,788		191,507
Redwood Trust, Inc., REIT	1,885		91,686
Republic Property Trust, REIT	3,083		33,820
Saul Centers, Inc., REIT	1,134		49,510
Saxon Capital, Inc., REIT	4,927		68,535
Senior Housing Properties Trust, REIT	6,092		123,972
Sovran Self Storage, Inc., REIT	1,725		93,288
Spirit Finance Corp., REIT	9,200		104,420
Strategic Hotel Cap, Inc., REIT	6,822		139,169
Sun Communities, Inc., REIT	1,931		62,159
Sunstone Hotel Investors, Inc., REIT	5,436		162,536
Tanger Factory Outlet Centers, Inc., REIT	3,049		109,154
The Mills Corp., REIT (a)	5,185		93,226
Trammell Crow Company, REIT *	3,417		117,613
Trustreet Properties, Inc., REIT (a)	6,499		79,093
Universal Health Realty Income Trust, REIT	1,588		57,628
Urstadt Biddle Properties, Inc., REIT	2,776		47,803
U-Store-It Trust, REIT	4,418		88,007
Washington Real Estate Investment Trust,
REIT (a)	4,263		173,163
Windrose Medical Properties Trust, REIT	2,611		39,531
Winston Hotels, Inc., REIT	3,143		37,433

			8,774,896
Retail - 0.14%
Books-A-Million, Inc. (a)	1,667		26,589
Core-Mark Holding Company, Inc. * (a)	1,050		32,823
Tween Brands, Inc. *	3,214		109,469

			168,881
Retail Grocery - 0.39%
Ingles Markets, Inc.	1,447		37,043
Nash-Finch Company (a)	1,376		31,442
Pathmark Stores, Inc. *	5,107		49,589
Ruddick Corp.	3,882		100,117
Smart & Final, Inc. *	1,510		25,021
The Great Atlantic & Pacific Tea Company,
Inc. * (a)	1,796		41,182
United Natural Foods, Inc. *	4,045		117,507
Weis Markets, Inc. (a)	978		38,641
Wild Oats Markets, Inc. * (a)	2,791		45,605

			486,147
Retail Trade - 3.66%
99 Cents Only Stores * (a)	4,527		51,427
A.C. Moore Arts & Crafts, Inc. * (a)	1,630		28,981

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Retail Trade (continued)
Aaron Rents, Inc., Class B	4,192	$	98,135
Aeropostale, Inc. *	5,172		131,369
Big 5 Sporting Goods Corp.	2,274		44,639
Big Lots, Inc. * (a)	10,677		195,923
Borders Group, Inc.	6,142		117,497
Build A Bear Workshop, Inc. *	1,463		31,937
Building Materials Holding Corp. (a)	2,742		71,621
Cabela's, Inc. * (a)	3,076		61,766
Cache, Inc. *	1,511		23,919
Casey's General Stores, Inc.	4,814		113,803
Cash America International, Inc.	2,817		103,863
Casual Male Retail Group, Inc. * (a)	3,119		35,089
Cato Corp., Class A	2,983		69,295
Charlotte Russe Holding, Inc. * (a)	1,499		40,023
Charming Shoppes, Inc. *	11,706		154,051
Childrens Place Retail Stores, Inc. *	2,152		124,751
Christopher & Banks Corp.	3,497		85,152
Citi Trends, Inc. * (a)	650		20,430
Conn's, Inc. * (a)	844		16,838
Cost Plus, Inc. * (a)	2,254		22,946
DSW, Inc., Class A * (a)	1,586		44,392
Finish Line, Inc.	4,242		47,214
First Cash Financial Services, Inc. *	2,769		57,678
Fossil, Inc. * (a)	4,146		78,028
Fred's, Inc., Class A	3,892		51,024
Gaiam, Inc., Class A * (a)	1,765		20,333
Genesco, Inc. *	2,224		61,116
Guitar Center, Inc. *	2,516		95,356
Haverty Furniture Companies, Inc. (a)	2,408		33,832
Hibbett Sporting Goods, Inc. *	3,474		85,217
Hot Topic, Inc. * (a)	4,273		42,217
Jo Ann Stores, Inc. * (a)	2,342		34,685
Longs Drug Stores Corp.	3,024		137,380
Marinemax, Inc. * (a)	1,612		36,641
NBTY, Inc. *	5,216		166,182
New York & Company, Inc. *	2,108		24,073
Pacific Sunwear of California, Inc. *	6,941		92,732
Pantry, Inc. *	2,171		101,733
Payless ShoeSource, Inc. *	6,311		148,056
PETCO Animal Supplies, Inc. *	5,493		154,628
Pier 1 Imports, Inc. (a)	8,242		52,666
Regis Corp.	4,335		159,051
Rent-A-Center, Inc. *	6,608		179,077
Restoration Hardware, Inc. * (a)	3,247		22,826
Retail Ventures, Inc. * (a)	1,987		28,474
School Specialty, Inc. * (a)	2,266		80,964
Shoe Carnival, Inc. *	960		21,946
Sonic Automotive, Inc. (a)	2,904		61,420
Spectrum Brands, Inc. * (a)	3,539		28,170
Stein Mart, Inc.	2,712		32,246
Steven Madden, Ltd. *	2,019		74,400
Talbots, Inc. (a)	2,125		46,771

The accompanying notes are an integral part of the financial statements. 342

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Retail Trade (continued)
The Buckle, Inc.	1,017	$	34,476
The Dress Barn, Inc. *	4,411		77,854
The Men's Wearhouse, Inc.	4,525		160,411
The Wet Seal, Inc., Class A * (a)	6,723		38,388
The Yankee Candle, Inc.	3,875		100,169
Tuesday Morning Corp. (a)	2,889		38,944
ValueVision Media, Inc., Class A *	3,194		35,262
Zale Corp. *	4,565		122,114
Zumiez, Inc. * (a)	1,398		31,161

			4,582,762
Sanitary Services - 0.24%
Casella Waste Systems, Inc., Class A *	2,343		27,577
Darling International, Inc. *	7,050		29,117
Insituform Technologies, Inc., Class A *	2,596		59,578
Synagro Technologies, Inc. (a)	6,455		25,755
Waste Connections, Inc. *	4,147		152,485

			294,512
Semiconductors - 2.91%
Actel Corp. *	2,677		41,547
Advanced Analogic Technologies, Inc. *	3,588		34,158
Advanced Energy Industries, Inc. *	3,376		48,513
American Superconductor Corp. * (a)	3,323		33,130
Amis Holdings, Inc. *	4,184		38,116
Amkor Technology, Inc. *	9,657		54,755
Applied Micro Circuits Corp. *	27,649		75,482
Asyst Technologies, Inc. *	4,680		35,053
ATMI, Inc. *	3,540		102,200
Axcelis Technologies, Inc. *	9,586		60,296
Brooks Automation, Inc. *	7,068		98,245
Cirrus Logic, Inc. *	8,305		60,793
Conexant Systems, Inc. * (a)	45,275		93,266
Credence Systems Corp. * (a)	10,004		25,310
Cymer, Inc. *	3,638		149,704
Diodes, Inc. *	1,876		70,237
DSP Group, Inc. *	2,944		72,040
Emcore Corp. * (a)	3,959		29,890
Emulex Corp. *	7,934		137,417
Entegris, Inc. *	12,983		140,995
Exar Corp. *	3,103		43,380
FormFactor, Inc. *	4,329		208,918
Genesis Microchip, Inc. * (a)	3,339		43,140
Hittite Microwave Corp. *	1,245		56,249
Ikanos Communications, Inc. *	2,101		26,809
International Displayworks, Inc. * (a)	4,761		27,852
IXYS Corp. *	2,873		25,225
Kopin Corp. * (a)	6,967		26,126
Kulicke & Soffa Industries, Inc. * (a)	5,417		42,632
Lattice Semiconductor Corp. *	10,842		79,363
LTX Corp. * (a)	5,898		29,903
Mattson Technology, Inc. *	5,026		39,354
Micrel, Inc. *	6,870		68,837

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Semiconductors (continued)
Microsemi Corp. *	6,714	$	186,448
Microtune, Inc. *	5,231		31,491
MIPS Technologies, Inc., Class A *	4,396		30,596
MKS Instruments, Inc. *	3,425		71,548
Netlogic Microsystems, Inc. * (a)	1,512		44,619
OmniVision Technologies, Inc. * (a)	5,031		83,515
ON Semiconductor Corp. * (a)	14,368		86,352
Pericom Semiconductor Corp. *	3,127		29,081
Photronics, Inc. *	3,933		57,068
PLX Technology, Inc. * (a)	2,527		27,089
Power Integrations, Inc. *	44		810
Rudolph Technologies, Inc. *	2,353		42,119
Semitool, Inc. * (a)	2,384		26,033
Semtech Corp. *	6,834		89,320
Silicon Image, Inc. *	7,724		89,676
Skyworks Solutions, Inc. * (a)	15,053		69,695
Tessera Technologies, Inc. * (a)	4,361		143,477
TranSwitch Corp. * (a)	13,020		23,176
Triquint Semiconductor, Inc. *	13,253		65,337
Ultratech, Inc. * (a)	2,304		33,708
Varian Semiconductor Equipment Associates,
Inc. *	5,392		190,391
Veeco Instruments, Inc. *	2,872		70,249
Volterra Semiconductor Corp. * (a)	1,890		28,501

			3,639,234
Shipbuilding - 0.03%
Maritrans, Inc. (a)	1,389		34,378
Software - 2.98%
Actuate Corp. *	5,955		22,510
Advent Software, Inc. *	2,071		67,825
Allscripts Healthcare Solution, Inc. * (a)	4,362		88,810
Altiris, Inc. *	2,254		50,940
American Reprographics Company *	2,500		76,300
ANSYS, Inc. *	3,122		145,922
Aspen Technology, Inc. *	4,646		51,849
Avid Technology, Inc. * (a)	3,988		158,842
Blackbaud, Inc.	4,151		95,930
Blackboard, Inc. * (a)	2,639		70,329
Borland Software Corp. *	7,515		44,188
Bottomline Technologies, Inc. *	2,100		21,189
CIBER, Inc. *	5,402		35,707
Concur Technologies, Inc. * (a)	3,103		43,225
Convera Corp. * (a)	2,935		18,285
Covansys Corp. *	2,985		51,223
Dendrite International, Inc. *	3,623		36,303
Eclipsys Corp. *	4,283		73,239
Emageon, Inc. * (a)	2,104		32,423
Epicor Software Corp. *	5,242		64,896
EPIQ Systems, Inc. * (a)	1,688		25,117
Equinix, Inc. * (a)	2,705		155,997
Hyperion Solutions Corp. *	5,578		184,743

The accompanying notes are an integral part of the financial statements. 343

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Software (continued)
i2 Technologies, Inc. * (a)	1,492	$	24,320
Igate Corp. *	2,714		12,864
InfoUSA, Inc. *	3,328		27,489
Intermediate Telephone, Inc.	2,060		45,402
iPass, Inc. * (a)	6,304		28,746
JDA Software Group, Inc. *	2,839		47,099
Keane, Inc. * (a)	4,069		62,988
Lawson Software, Inc. *	11,755		78,288
Macrovision Corp. *	4,901		114,095
Magma Design Automation, Inc. * (a)	3,696		28,016
Manhattan Associates, Inc. *	2,638		61,228
Mantech International Corp. *	1,724		52,479
MapInfo Corp. *	2,286		28,346
McDATA Corp., Class A *	14,607		62,664
MicroStrategy, Inc., Class A * (a)	954		87,005
Midway Games, Inc. * (a)	3,423		31,492
Monolithic Power Systems, Inc. *	2,308		20,911
MRO Software, Inc. *	1,943		49,916
Neoware Systems, Inc. * (a)	1,973		25,452
Nuance Communications, Inc. * (a)	11,868		93,164
Omnicell, Inc. * (a)	2,645		47,398
Open Solutions, Inc. *	1,963		57,987
Opnet Technologies, Inc. *	1,513		20,637
Opsware, Inc. * (a)	7,774		54,807
Packeteer, Inc. *	3,357		33,738
PDF Solutions, Inc. * (a)	2,158		27,968
Progress Software Corp. *	3,929		99,482
Quality Systems, Inc. *	1,565		62,757
Secure Computing Corp. * (a)	4,357		27,667
Smith Micro Software, Inc. * (a)	2,032		27,351
SPSS, Inc. *	1,865		47,315
Take-Two Interactive Software, Inc. * (a)	6,729		82,094
Taleo Corp. * (a)	1,432		15,050
THQ, Inc. *	5,999		154,774
Tradestation Group, Inc. * (a)	2,494		36,537
Transaction Systems Architects, Inc., Class A *	3,547		117,654
Ultimate Software Group, Inc. *	2,323		52,500
VA Software Corp. * (a)	6,269		23,446
Verint Systems, Inc. *	1,271		42,007
Websense, Inc. *	4,535		93,739

			3,722,664
Steel - 0.77%
AK Steel Holding Corp. *	10,382		130,917
Chaparral Steel Company *	2,187		156,196
NS Group, Inc. *	2,124		96,684
Olympic Steel, Inc.	854		23,613
Oregon Steel Mills, Inc. *	3,380		162,815
Ryerson, Inc. (a)	2,444		51,764
Schnitzer Steel Industries, Inc.	2,145		68,104
Steel Technologies, Inc.	1,214		26,999
Texas Industries, Inc.	2,164		101,578

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Steel (continued)
Wheeling-Pittsburgh Corp. * (a)	1,113	$	19,611
Worthington Industries, Inc. (a)	6,828		130,483

			968,764
Telecommunications Equipment &
Services - 2.63%
ADTRAN, Inc.	6,433		159,989
Aeroflex, Inc. *	7,129		74,284
Alaska Communications Systems Group, Inc. (a)	4,244		58,525
Andrew Corp. *	14,987		138,630
Arris Group, Inc. *	10,094		115,677
At Road, Inc. * (a)	6,180		29,231
Atheros Communications, Inc. * (a)	4,875		79,316
Broadwing Corp. * (a)	7,217		82,635
Carrier Access Corp. *	2,267		20,448
Commonwealth Telephone Enterprises, Inc.	2,192		77,290
Commscope, Inc. *	5,444		159,019
Comtech Telecommunications Corp. *	2,174		71,155
Consolidated Communications Holdings, Inc.	2,487		42,652
CT Communications, Inc. (a)	1,981		45,642
Ditech Networks, Inc. *	3,269		28,800
Essex Corp. *	1,917		28,525
Fairpoint Communications, Inc.	2,816		46,042
FiberTower Corp. *	5,238		40,699
Finisar Corp. * (a)	21,503		79,776
First Avenue Networks, Inc. * (a)	0		0
General Communication, Inc. *	5,289		67,223
Golden Telecom, Inc.	2,104		64,172
Harmonic, Inc. *	7,129		44,271
InterDigital Communication Corp. * (a)	5,155		171,301
Iowa Telecommunications Services, Inc.	3,311		64,300
J2 Global Communications, Inc. * (a)	4,687		117,784
Loral Space & Communications, Inc. * (a)	1,167		29,992
Mastec, Inc. * (a)	3,828		44,367
MRV Communications, Inc. * (a)	12,120		30,179
Newport Corp. *	3,854		67,946
NTELOS Holdings Corp. *	1,582		21,721
Oplink Communications, Inc. *	1,629		31,977
Plantronics, Inc. (a)	4,422		79,242
Polycom, Inc. *	8,214		195,411
Powerwave Technologies, Inc. * (a)	10,505		79,628
Premiere Global Services, Inc. *	6,922		53,992
Price Communications Corp. *	4,417		80,743
RCN Corp. * (a)	2,785		72,048
SAVVIS, Inc. * (a)	3,099		77,506
Shenandoah Telecommunications Company	838		36,838
Sirenza Microdevices, Inc. * (a)	2,482		23,008
Sonus Networks, Inc. * (a)	23,770		115,522
Stratex Networks, Inc. * (a)	9,281		33,876
SureWest Communications (a)	1,601		30,387
Symmetricom, Inc. * (a)	4,544		33,898
Tekelec, Inc. * (a)	5,463		72,658
UTStarcom, Inc. * (a)	11,357		93,241

The accompanying notes are an integral part of the financial statements. 344

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Telecommunications Equipment &
Services (continued)
Viasat, Inc. *	2,123	$	57,427
Vonage Holdings Corp. * (a)	2,941		25,028

			3,294,021
Telephone - 0.23%
Cbeyond Communications, Inc. * (a)	1,621		38,483
Cincinnati Bell, Inc. *	23,409		118,215
IDT Corp. * (a)	5,032		71,857
North Pittsburgh Systems, Inc. (a)	1,625		40,592
TALK America Holdings, Inc. * (a)	3,510		20,358

			289,505
Tires & Rubber - 0.12%
Bandag, Inc. (a)	1,181		44,949
Cooper Tire & Rubber Company (a)	5,844		57,446
Myers Indiana, Inc.	2,634		43,277

			145,672
Tobacco - 0.18%
Alliance One International, Inc.	9,111		36,717
Schweitzer Mauduit International, Inc.	1,661		31,559
Universal Corp.	2,429		93,832
Vector Group, Ltd. (a)	3,572		61,689

			223,797
Toys, Amusements & Sporting Goods - 0.11%
Jakks Pacific, Inc. * (a)	2,673		43,677
Marvel Entertainment, Inc. * (a)	4,462		95,665

			139,342
Transportation - 0.49%
American Commercial Lines, Inc. *	2,939		154,298
Atlas Air Worldwide Holdings, Inc. *	1,955		85,883
Bristow Group, Inc. *	2,271		84,731
Dynamex, Inc. * (a)	1,584		33,818
Marten Transport, Ltd. *	1,625		27,072
Pacer International, Inc.	3,684		101,421
PHI, Inc. *	1,369		42,781
Saia, Inc. *	1,517		46,648
U. S. Xpress Enterprises, Inc., Class A *	1,040		21,663
USA Truck, Inc. *	1,058		17,637

			615,952
Travel Services - 0.05%
Ambassadors Group, Inc.	2,048		57,610
Trucking & Freight - 0.84%
Arkansas Best Corp.	2,448		108,079
Celadon Group, Inc. *	2,306		42,730
EGL, Inc. *	3,016		92,199
Forward Air Corp.	3,049		97,995
Heartland Express, Inc.	5,866		94,325
Hub Group, Inc., Class A *	3,889		90,614
ID Systems, Inc. * (a)	1,234		27,420
Knight Transportation, Inc.	5,486		94,304
Navistar International Corp. *	5,871		134,681

Small Cap Index Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Trucking & Freight (continued)
Old Dominion Freight Lines, Inc. *		2,736	$	87,333
Trico Marine Services, Inc. *		1,279		45,878
Wabash National Corp. (a)		3,078		42,446
Werner Enterprises, Inc. (a)		4,989		92,446

				1,050,450
Utility Service - 0.04%
SJW Corp.		1,619		49,137

TOTAL COMMON STOCKS (Cost $118,737,034)			$	119,753,322


SHORT TERM INVESTMENTS - 29.90%
Federal Home Loan Mortgage Corp. Discount Notes
zero coupon due 10/10/2006	$	1,800,000	$	1,789,967
Federal National Mortgage Association
Discount Notes
zero coupon due 10/04/2006		1,500,000		1,492,939
Rabobank USA Finance Corp.
5.27% due 09/01/2006		1,470,000		1,470,000
State Street Navigator Securities Lending
Prime Portfolio (c)		32,157,578		32,157,578
United States Treasury Bills
zero coupon due 10/19/2006 ****		500,000		496,687

TOTAL SHORT TERM INVESTMENTS
(Cost $37,407,171)			$	37,407,171

Total Investments (Small Cap Index Fund)
(Cost $156,144,205) - 125.63%			$	157,160,493
Liabilities in Excess of Other Assets - (25.63)%				(32,064,055)

TOTAL NET ASSETS - 100.00%			$	125,096,438



Small Cap Opportunities Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 94.01%
Aluminum - 0.85%
Century Aluminum Company * (a)		60,508	$	2,100,233
Apparel & Textiles - 0.77%
Wolverine World Wide, Inc. (a)		75,014		1,892,603
Auto Parts - 3.55%
American Axle & Manufacturing Holdings, Inc. (a)		68,357		1,140,878
BorgWarner, Inc.		73,010		4,140,397
Commercial Vehicle Group, Inc. *		121,712		2,387,990
Noble International, Ltd. (a)		84,702		1,094,350

				8,763,615
Auto Services - 0.59%
Lithia Motors, Inc., Class A		22,680		578,794
Spartan Motors, Inc. *		51,271		881,861

				1,460,655
Automobiles - 1.28%
Rush Enterprises, Inc., Class A *		19,628		343,490

The accompanying notes are an integral part of the financial statements. 345

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Automobiles (continued)
United Auto Group, Inc. (a)	138,014	$	2,818,246

			3,161,736
Banking - 3.65%
Bank of the Ozarks, Inc. (a)	39,745		1,268,660
Capitol Bancorp, Ltd.	13,700		577,729
First Midwest BanCorp, Inc., Illinois	33,000		1,232,550
IBERIABANK Corp.	23,000		1,340,900
Mercantile Bank Corp.	28,900		1,171,028
Sterling Financial Corp., Spokane	36,500		1,206,690
SVB Financial Group *	23,100		1,043,889
UCBH Holdings, Inc.	40,000		725,600
Wintrust Financial Corp.	8,800		442,728

			9,009,774
Biotechnology - 0.54%
Techne Corp. *	26,200		1,333,580
Building Materials & Construction - 1.70%
Builders FirstSource, Inc. * (a)	196,149		2,981,465
Eagle Materials, Inc.	34,240		1,227,504

			4,208,969
Business Services - 0.84%
SRA International, Inc., Class A * (a)	73,700		2,064,337
Computers & Business Equipment - 3.96%
CACI International, Inc., Class A *	46,592		2,472,171
Digi International, Inc. *	239,402		3,174,471
Komag, Inc. * (a)	45,100		1,621,796
Sonic Solutions * (a)	168,105		2,523,256

			9,791,694
Construction & Mining Equipment - 1.48%
Pason Systems, Inc.	245,672		3,667,376
Construction Materials - 0.71%
Universal Forest Products, Inc. (a)	35,818		1,746,486
Crude Petroleum & Natural Gas - 1.08%
Cimarex Energy Company (a)	41,400		1,585,620
Unit Corp. *	20,631		1,087,460

			2,673,080
Domestic Oil - 1.22%
Brigham Exploration Company * (a)	130,157		915,004
Oil States International, Inc. * (a)	65,876		2,105,397

			3,020,401
Drugs & Health Care - 1.31%
Qiagen NV * (a)	124,400		1,798,824
West Pharmaceutical Services, Inc.	36,300		1,448,733

			3,247,557
Electrical Equipment - 2.83%
AMETEK, Inc.	99,295		4,257,770
FLIR Systems, Inc. * (a)	98,700		2,733,990

			6,991,760
Electrical Utilities - 0.60%
Allete, Inc.	24,041		1,104,443

Small Cap Opportunities Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electrical Utilities (continued)
Pike Electric Corp. *	21,400	$	375,356

			1,479,799
Electronics - 0.95%
NAM TAI Electronics, Inc.	64,200		962,358
TTM Technologies, Inc. *	108,732		1,398,293

			2,360,651
Energy - 2.68%
Headwaters, Inc. * (a)	50,318		1,113,034
New Jersey Resources Corp.	28,445		1,412,579
Southwestern Energy Company *	119,146		4,092,665

			6,618,278
Financial Services - 4.08%
Accredited Home Lenders Holding Company * (a)	82,840		2,645,081
Affiliated Managers Group, Inc. * (a)	48,320		4,471,050
Commercial Capital Bancorp, Inc.	100,280		1,593,449
Harbor Florida Bancshares, Inc.	31,100		1,377,419

			10,086,999
Gas & Pipeline Utilities - 0.15%
Atlas Pipeline Partners, L.P.	8,700		378,450
Healthcare Products - 2.45%
American Medical Systems Holdings, Inc. * (a)	82,600		1,450,456
Orthofix International NV *	24,734		971,799
Polymedica Corp. (a)	55,716		2,261,512
Respironics, Inc. *	37,176		1,372,166

			6,055,933
Homebuilders - 2.82%
Beazer Homes USA, Inc. (a)	23,200		934,960
Meritage Homes Corp. * (a)	66,300		2,714,985
Ryland Group, Inc. (a)	77,712		3,315,971

			6,965,916
Household Appliances - 1.16%
Drew Industries, Inc. * (a)	109,344		2,854,972
Household Products - 1.04%
Tempur-Pedic International, Inc. * (a)	160,348		2,573,585
Industrial Machinery - 4.60%
Actuant Corp., Class A (a)	52,257		2,356,791
Ceradyne, Inc. * (a)	89,612		3,949,201
FMC Technologies, Inc. *	20,983		1,234,220
Rush Enterprises, Inc., Class B *	94,165		1,541,481
The Middleby Corp. * (a)	29,256		2,297,766

			11,379,459
Insurance - 3.42%
American Equity Investment Life Holding
Company (a)	64,700		748,579
Aspen Insurance Holdings, Ltd.	86,610		2,141,865
Assured Guaranty, Ltd. (a)	54,153		1,448,593
Hub International, Ltd.	53,023		1,518,579
Max Re Capital, Ltd.	44,200		1,025,882

The accompanying notes are an integral part of the financial statements. 346

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
Triad Guaranty, Inc. * (a)	31,143	$	1,565,558

			8,449,056
Internet Service Provider - 1.34%
NETGEAR, Inc. * (a)	126,748		2,493,133
Tom Online, Inc., ADR * (a)	61,100		823,017

			3,316,150
Leisure Time - 1.18%
Penn National Gaming, Inc. *	87,949		2,912,871
Manufacturing - 2.11%
Carlisle Companies, Inc.	40,655		3,476,003
Raven Industries, Inc. (a)	62,526		1,746,351

			5,222,354
Medical-Hospitals - 0.73%
VCA Antech, Inc. *	50,868		1,801,745
Metal & Metal Products - 1.66%
Quanex Corp. (a)	62,950		2,161,073
Reliance Steel & Aluminum Company	59,484		1,949,291

			4,110,364
Mining - 1.35%
AMCOL International Corp. (a)	143,710		3,336,946
Mobile Homes - 2.14%
Thor Industries, Inc. (a)	79,078		3,335,510
Winnebago Industries, Inc. (a)	66,573		1,943,932

			5,279,442
Petroleum Services - 1.89%
Core Laboratories N.V. *	34,466		2,528,770
TETRA Technologies, Inc. *	77,360		2,151,382

			4,680,152
Real Estate - 19.84%
Aames Investment Corp., REIT (a)	332,447		1,333,113
American Home Mortgage Investment Corp.,
REIT (a)	171,543		5,437,913
Anthracite Capital, Inc., REIT	92,756		1,191,915
Ashford Hospitality Trust, Inc., REIT	261,889		3,134,811
BioMed Realty Trust, Inc., REIT	41,000		1,276,740
Corporate Office Properties Trust, REIT	59,547		2,796,923
Equity One, Inc., REIT (a)	94,073		2,365,936
FBR Capital Markets Corp., REIT *	89,200		1,338,000
First Potomac Realty Trust, REIT	58,800		1,823,388
Gramercy Captial Corp., REIT	69,604		1,886,268
HomeBanc Corp., Georgia, REIT (a)	143,700		962,790
Jer Investors Trust, Inc., REIT	167,548		2,796,376
KKR Financial Corp., REIT	185,137		4,426,626
LaSalle Hotel Properties, REIT	79,180		3,479,169
Luminent Mortgage Capital, Inc., REIT	118,611		1,201,529
New Century Financial Corp., REIT (a)	64,102		2,481,388
Newcastle Investment Corp., REIT	156,565		4,299,275
RAIT Investment Trust, REIT	114,143		3,193,721
Redwood Trust, Inc., REIT	53,846		2,619,070

Small Cap Opportunities Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Real Estate (continued)
Saxon Capital, Inc., REIT (a)		70,100	$	975,091

				49,020,042
Retail Grocery - 1.04%
Ruddick Corp. (a)		47,871		1,234,593
United Natural Foods, Inc. * (a)		45,745		1,328,892

				2,563,485
Retail Trade - 2.39%
Cabela's, Inc. * (a)		88,340		1,773,867
First Cash Financial Services, Inc. *		137,972		2,873,957
Tractor Supply Company *		29,600		1,260,368

				5,908,192
Semiconductors - 1.51%
Diodes, Inc. * (a)		96,396		3,609,066
Silicon Motion Technology Corp. *		9,100		134,680

				3,743,746
Software - 0.54%
Websense, Inc. *		64,034		1,323,583
Steel - 0.50%
NS Group, Inc. *		27,400		1,247,248
Telecommunications Equipment &
Services - 1.42%
DataPath, Inc. *		100,900		1,109,900
J2 Global Communications, Inc. * (a)		95,200		2,392,376

				3,502,276
Trucking & Freight - 4.06%
Landstar Systems, Inc.		61,968		2,646,033
Old Dominion Freight Lines, Inc. *		115,487		3,686,345
Oshkosh Truck Corp.		71,434		3,693,138

				10,025,516

TOTAL COMMON STOCKS (Cost $217,148,772)			$	232,331,066


SHORT TERM INVESTMENTS - 25.68%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	63,456,325	$	63,456,325

TOTAL SHORT TERM INVESTMENTS
(Cost $63,456,325)			$	63,456,325


REPURCHASE AGREEMENTS - 6.47%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$15,997,755 on 9/1/2006,
collateralized by $16,780,000
Federal National Mortgage
Association, 5.70% due
03/27/2023 (valued at
$16,318,550, including interest) (c)	$	15,996,000	$	15,996,000

TOTAL REPURCHASE AGREEMENTS
(Cost $15,996,000)			$	15,996,000

The accompanying notes are an integral part of the financial statements. 347

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Total Investments (Small Cap Opportunities Fund)
(Cost $296,601,097) - 126.16%		$	311,783,391
Liabilities in Excess of Other Assets - (26.16)%			(64,651,866

TOTAL NET ASSETS - 100.00%		$	247,131,525



Small Company Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 99.90%
Aerospace - 0.51%
Alliant Techsystems, Inc. * (a)	2,927	$	223,886
Armor Holdings, Inc. * (a)	2,779		146,926
Teledyne Technologies, Inc. *	2,714		104,055

			474,867
Agriculture - 0.89%
Delta & Pine Land Company	20,541		831,089
Air Travel - 0.36%
Frontier Airlines Holdings, Inc. * (a)	6,954		48,261
Mesa Air Group, Inc. * (a)	5,537		43,742
SkyWest, Inc. (a)	9,915		239,646

			331,649
Apparel & Textiles - 3.01%
Brown Shoe, Inc. (a)	33,408		1,067,386
DHB Industries, Inc. * (a)	17,669		48,590
Kellwood Company (a)	20,674		566,674
Mothers Work, Inc. *	2,206		84,291
Perry Ellis International, Inc. * (a)	1,531		41,276
The Gymboree Corp. *	30,024		1,007,305

			2,815,522
Auto Parts - 1.14%
Accuride Corp. * (a)	11,298		123,261
ArvinMeritor, Inc. (a)	63,580		944,163

			1,067,424
Automobiles - 1.21%
Group 1 Automotive, Inc. (a)	24,872		1,126,702
Banking - 6.44%
BancFirst Corp.	3,110		147,321
Bank of Hawaii Corp.	18,791		917,377
BankUnited Financial Corp., Class A	3,776		97,307
Center Financial Corp. (a)	4,417		107,775
City Bank Lynnwood WA	356		18,110
City National Corp.	8,606		566,275
Columbia Banking System, Inc. (a)	506		15,828
Commerce Bancshares, Inc.	7,168		359,260
Community Trust Bancorp, Inc. (a)	488		18,749
Corus Bankshares, Inc. (a)	43,518		949,128
Cullen Frost Bankers, Inc. (a)	3,947		232,715
Downey Financial Corp. (a)	14,985		919,929
Financial Institutions, Inc.	957		23,906
First Citizens Bancshares, Inc.	733		143,521
First Regional Bancorp *	2,652		74,919
FirstFed Financial Corp. * (a)	14,472		736,046
Greater Bay Bancorp	1,076		30,634
Hancock Holding Company (a)	934		48,418
Intervest Bancshares Corp. * (a)	3,863		162,323

Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
ITLA Capital Corp.	349	$	18,305
Nara Bancorp, Inc. (a)	930		17,205
Pacific Capital Bancorp	6,407		179,140
Preferred Bank, Los Angeles, CA	751		42,093
Trustmark Corp. (a)	2,373		74,916
Whitney Holding Corp.	1,574		55,357
Wilmington Trust Corp. (a)	1,424		62,727

			6,019,284
Biotechnology - 0.02%
Cephalon, Inc. * (a)	352		20,071
Broadcasting - 0.18%
New Frontier Media, Inc. *	2,419		20,295
Sinclair Broadcast Group, Inc., Class A (a)	18,544		143,160

			163,455
Building Materials & Construction - 1.47%
BlueLinx Holdings, Inc. (a)	25,205		266,417
EMCOR Group, Inc. * (a)	19,952		1,106,139

			1,372,556
Business Services - 5.22%
Acxiom Corp.	41,582		1,010,027
Arbinet-Thexchange, Inc. *	6,693		34,067
Convergys Corp. *	4,155		86,715
CSG Systems International, Inc. *	1,697		45,683
Dun & Bradstreet Corp. *	561		39,444
Ezcorp, Inc., Class A * (a)	542		21,284
Global Payments, Inc.	34,637		1,317,938
ICT Group, Inc. * (a)	3,265		94,522
John H. Harland Company (a)	26,396		986,154
Kforce, Inc. *	6,881		84,705
Labor Ready, Inc. * (a)	7,276		124,638
Rewards Network, Inc. * (a)	29,456		128,134
Sotheby's Holdings, Inc., Class A	1,243		34,555
Spherion Corp. * (a)	12,310		91,956
Standard Parking Corp. * (a)	2,403		81,462
Volt Information Sciences, Inc. * (a)	16,329		696,269

			4,877,553
Cable and Television - 0.20%
LodgeNet Entertainment Corp. * (a)	9,812		186,526
Cellular Communications - 0.34%
Tessco Technologies, Inc. *	6,235		145,899
USA Mobility, Inc. * (a)	7,453		170,301

			316,200
Chemicals - 3.69%
Celanese Corp., Series A	49,097		907,803
FMC Corp.	5,172		316,113
Georgia Gulf Corp. (a)	6,351		168,556
OM Group, Inc. * (a)	17,441		697,640
Pioneer Companies, Inc. * (a)	9,145		222,772
PolyOne Corp. *	3,315		28,741
Sensient Technologies Corp.	15,644		314,757

The accompanying notes are an integral part of the financial statements. 348

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Chemicals (continued)
Westlake Chemical Corp. (a)	26,524	$	794,659

			3,451,041
Coal - 0.29%
Massey Energy Company (a)	10,613		267,872
Commercial Services - 0.30%
Vertrue, Inc. * (a)	6,582		279,011
Computers & Business Equipment - 4.24%
Agilysys, Inc. (a)	29,405		397,556
Brocade Communications Systems, Inc. * (a)	39,403		244,298
Gerber Scientific, Inc. *	1,257		19,383
Komag, Inc. * (a)	31,325		1,126,447
MTS Systems Corp. (a)	9,375		314,719
Plexus Corp. *	45,212		896,102
Sybase, Inc. * (a)	29,822		687,993
Sykes Enterprises, Inc. *	13,781		277,136

			3,963,634
Construction & Mining Equipment - 0.04%
Matrix Service Company *	2,945		38,845
Construction Materials - 1.08%
Applied Industrial Technologies, Inc. (a)	11,733		265,283
Regal-Beloit Corp.	1,607		69,358
Universal Forest Products, Inc. (a)	12,328		601,113
USG Corp. * (a)	1,470		74,970

			1,010,724
Crude Petroleum & Natural Gas - 1.13%
Harvest Natural Resources, Inc. * (a)	52,550		672,115
Penn Virginia Corp. (a)	300		21,297
Pogo Producing Company (a)	5,640		250,472
Swift Energy Company * (a)	2,596		113,601

			1,057,485
Domestic Oil - 2.73%
Frontier Oil Corp.	48,241		1,577,481
Holly Corp.	1,603		73,449
St. Mary Land & Exploration Company	22,106		901,925

			2,552,855
Drugs & Health Care - 2.63%
Alliance Imaging, Inc. * (a)	12,453		80,695
Alpharma Inc., Class A (a)	15,041		314,959
Candela Corp. * (a)	12,854		134,067
ImClone Systems, Inc. * (a)	22,258		665,514
Molina Healthcare, Inc. *	10,694		396,106
Nutraceutical International Corp. *	9,367		131,325
Pain Therapeutics, Inc. * (a)	10,243		82,968
Savient Pharmaceuticals, Inc. *	2,860		18,533
Vital Signs, Inc.	1,322		71,719
West Pharmaceutical Services, Inc.	14,163		565,245

			2,461,131
Electrical Equipment - 1.95%
A.O. Smith Corp.	25,912		1,039,330

Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electrical Equipment (continued)
American Science & Engineering, Inc. * (a)	4,173	$	191,791
Littelfuse, Inc. *	4,232		152,818
Wesco International, Inc. * (a)	7,544		441,324

			1,825,263
Electrical Utilities - 0.45%
Pepco Holdings, Inc. (a)	4,119		104,581
Unisource Energy Corp.	9,192		317,216

			421,797
Electronics - 2.48%
Ansoft Corp. *	4,074		97,939
Arrow Electronics, Inc. * (a)	16,418		458,062
AVX Corp. (a)	5,359		89,013
Mentor Graphics Corp. *	1,272		18,444
Merix Corp. *	8,714		105,701
Planar Systems, Inc. * (a)	17,755		174,532
Teleflex, Inc.	10,041		560,388
TTM Technologies, Inc. * (a)	16,342		210,158
Zoran Corp. *	25,950		462,429
Zygo Corp. *	10,528		140,128

			2,316,794
Energy - 1.62%
Energen Corp.	30,975		1,351,749
New Jersey Resources Corp.	3,271		162,438

			1,514,187
Financial Services - 2.75%
Calamos Asset Management, Inc. (a)	7,947		208,370
City Holding Company (a)	4,346		171,146
IndyMac Bancorp, Inc.	19,462		760,964
Ocwen Financial Corp. * (a)	62,208		917,568
SWS Group, Inc. (a)	11,809		290,502
Taylor Capital Group, Inc. (a)	866		25,469
World Acceptance Corp. * (a)	4,955		198,051

			2,572,070
Food & Beverages - 2.93%
Coca-Cola Bottling Company	326		19,104
Del Monte Foods Company	78,755		874,180
Domino's Pizza, Inc.	37,933		927,462
M & F Worldwide Corp. *	9,911		158,477
Seabord Corp. (a)	445		623,000
Spartan Stores, Inc.	7,496		135,153

			2,737,376
Furniture & Fixtures - 0.07%
American Woodmark Corp. (a)	1,999		63,028
Gas & Pipeline Utilities - 1.03%
UGI Corp.	35,579		882,359
Vectren Corp.	2,825		77,857

			960,216
Healthcare Products - 3.54%
Bruker BioSciences Corp. *	6,016		42,473
Cantel Medical Corp. * (a)	11,181		157,988

The accompanying notes are an integral part of the financial statements. 349

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Products (continued)
Dade Behring Holdings, Inc.	23,556	$	953,782
Edwards Lifesciences Corp. *	405		18,909
Haemonetics Corp. *	1,487		69,264
Health Tronics, Inc. * (a)	6,502		42,783
Henry Schein, Inc. *	451		22,491
ICU Medical, Inc. * (a)	3,488		153,507
IDEXX Laboratories, Inc. * (a)	1,636		150,528
Kinetic Concepts, Inc. *	15,651		494,572
Molecular Devices Corp. * (a)	8,683		208,479
PSS World Medical, Inc. * (a)	19,599		380,221
SurModics, Inc. * (a)	3,814		133,414
USANA Health Sciences, Inc. * (a)	1,721		77,032
Zoll Medical Corp. * (a)	10,704		405,789

			3,311,232
Healthcare Services - 4.04%
Air Methods Corp. * (a)	1,326		30,896
Magellan Health Services, Inc. *	10,271		493,727
Palomar Medical Technologies, Inc. * (a)	8,043		319,307
Sierra Health Services, Inc. * (a)	40,015		1,716,644
Wellcare Health Plans, Inc. * (a)	21,553		1,208,692

			3,769,266
Holdings Companies/Conglomerates - 0.09%
PICO Holdings, Inc. *	1,386		46,971
United Industrial Corp. (a)	742		39,972

			86,943
Homebuilders - 0.90%
NVR, Inc. * (a)	1,642		843,413
Hotels & Restaurants - 2.20%
Interstate Hotels & Resorts, Inc. *	58,066		603,306
Luby's Cafeterias, Inc. *	17,008		161,746
Marcus Corp.	8,786		180,728
Papa Johns International, Inc. * (a)	32,578		1,107,652

			2,053,432
Industrial Machinery - 2.92%
Cummins, Inc. (a)	12,820		1,471,993
EnPro Industries, Inc. * (a)	4,507		141,700
Flow International Corp. * (a)	30,221		397,708
Gardner Denver, Inc. *	8,868		318,982
Manitowoc, Inc. (a)	5,475		241,995
The Middleby Corp. *	1,959		153,860

			2,726,238
Industrials - 0.69%
Crane Company	16,065		642,279
Insurance - 3.17%
American Financial Group, Inc. (a)	12,877		601,614
FPIC Insurance Group, Inc. * (a)	1,803		74,356
Harleysville Group, Inc.	3,281		118,083
LandAmerica Financial Group, Inc. (a)	20,852		1,318,681
Philadelphia Consolidated Holding Corp. *	2,796		101,103
Protective Life Corp.	5,767		265,455

Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
Safety Insurance Group, Inc. (a)	6,829	$	351,147
Selective Insurance Group, Inc. (a)	2,564		133,379

			2,963,818
Internet Content - 0.27%
TheStreet.com, Inc. (a)	23,810		256,196
Internet Service Provider - 0.48%
TriZetto Group, Inc. * (a)	11,849		162,568
United Online, Inc. (a)	24,545		281,531

			444,099
Internet Software - 0.81%
RealNetworks, Inc. * (a)	68,425		754,728
Leisure Time - 0.28%
Handleman Company (a)	4,555		31,748
Monarch Casino & Resort, Inc. * (a)	1,899		36,024
Regal Entertainment Group, Class A	3,155		62,248
Steinway Musical Instruments, Inc. * (a)	4,953		126,896

			256,916
Manufacturing - 0.71%
Mettler-Toledo International, Inc. *	10,813		658,944
Metal & Metal Products - 0.43%
Metal Management, Inc.	13,671		349,704
Quanex Corp.	1		17
Shiloh Industries, Inc *	4,016		55,582

			405,303
Office Furnishings & Supplies - 0.28%
CompX International, Inc. (a)	1,227		19,693
Global Imaging Systems, Inc. *	5,005		109,760
OfficeMax, Inc. (a)	3,084		128,078

			257,531
Petroleum Services - 3.41%
Core Laboratories N.V. *	254		18,636
Grey Wolf, Inc. * (a)	67,973		496,883
Lone Star Technologies, Inc. *	3,940		178,600
McDermott International, Inc. *	25,444		1,226,401
SEACOR SMIT, Inc. * (a)	3,663		318,791
Seitel, Inc. *	113,586		445,257
Tesoro Petroleum Corp.	7,776		502,407

			3,186,975
Pharmaceuticals - 1.97%
Alkermes, Inc. * (a)	50,569		826,803
Bradley Pharmaceuticals, Inc., Class A *	2,989		44,267
King Pharmaceuticals, Inc. * (a)	58,109		942,528
Watson Pharmaceuticals, Inc. *	864		22,153

			1,835,751
Photography - 0.20%
CPI Corp.	4,611		181,812
Plastics - 0.21%
Spartech Corp.	8,854		199,481

The accompanying notes are an integral part of the financial statements. 350

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Publishing - 1.60%
Consolidated Graphics, Inc. *	10,971	$	682,177
John Wiley & Sons, Inc., Class A	5,954		205,413
Warner Music Group Corp.	24,223		604,121

			1,491,711
Railroads & Equipment - 0.40%
Kansas City Southern * (a)	14,007		369,084
Real Estate - 3.12%
CBL & Associates Properties, Inc., REIT (a)	17,813		725,702
FelCor Lodging Trust, Inc., REIT (a)	6,110		131,060
Mission West Properties, Inc., REIT	6,206		67,335
New Century Financial Corp., REIT (a)	5,220		202,066
NorthStar Realty Finance Corp., REIT	51,779		620,830
Saul Centers, Inc., REIT (a)	1,632		71,253
Taubman Centers, Inc., REIT	27,286		1,099,353

			2,917,599
Retail Trade - 5.36%
Big Lots, Inc. * (a)	16,334		299,729
Bon-Ton Stores, Inc. (a)	13,699		375,489
Building Materials Holding Corp. (a)	34,190		893,043
Dollar Tree Stores, Inc. *	37,331		1,074,386
FTD Group, Inc. * (a)	2,372		37,596
NBTY, Inc. *	5,264		167,711
Pantry, Inc. * (a)	19,199		899,665
Payless ShoeSource, Inc. *	9,643		226,225
The Dress Barn, Inc. * (a)	58,672		1,035,561

			5,009,405
Semiconductors - 1.92%
Amkor Technology, Inc. *	18,364		104,124
Kulicke & Soffa Industries, Inc. * (a)	29,979		235,934
MKS Instruments, Inc. *	23,681		494,696
OmniVision Technologies, Inc. *	1,293		21,464
ON Semiconductor Corp. * (a)	155,577		935,018

			1,791,236
Software - 1.96%
Actuate Corp. * (a)	9,658		36,507
American Reprographics Company * (a)	966		29,482
Aspen Technology, Inc. * (a)	50,374		562,174
DucoCorp, Inc. *	2,500		20,000
InfoUSA, Inc. *	1,432		11,828
Interactive Intelligence, Inc. *	1,517		17,582
MicroStrategy, Inc., Class A * (a)	12,016		1,095,859
SPSS, Inc. *	1,243		31,535
VeriFone Holdings, Inc. *	1,151		26,646

			1,831,613
Steel - 2.61%
AK Steel Holding Corp. *	19,281		243,133
Chaparral Steel Company * (a)	4,697		335,460
Novamerican Steel, Inc *	2,209		71,704
Olympic Steel, Inc. (a)	15,376		425,146
Ryerson, Inc. (a)	16,408		347,522

Small Company Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Steel (continued)
Steel Dynamics, Inc. (a)		19,267	$	1,017,105

				2,440,070
Telecommunications Equipment &
Services - 1.28%
CT Communications, Inc. (a)		22,208		511,673
InterDigital Communication Corp. * (a)		18,336		609,305
Sirenza Microdevices, Inc. * (a)		8,226		76,255

				1,197,233
Telephone - 0.53%
CenturyTel, Inc.		12,417		494,445
Tobacco - 1.24%
Loews Corp. - Carolina Group		20,299		1,162,321
Toys, Amusements & Sporting Goods - 0.78%
Jakks Pacific, Inc. * (a)		44,569		728,257
Transportation - 0.46%
Bristow Group, Inc. *		4,105		153,157
Kirby Corp. * (a)		9,411		276,025

				429,182
Trucking & Freight - 1.64%
Arkansas Best Corp. (a)		4,626		204,238
EGL, Inc. * (a)		5,671		173,362
Forward Air Corp. (a)		5,869		188,630
Heartland Express, Inc. (a)		11,106		178,590
Knight Transportation, Inc. (a)		10,340		177,745
Landstar Systems, Inc. (a)		10,433		445,489
Old Dominion Freight Lines, Inc. * (a)		5,261		167,931

				1,535,985

TOTAL COMMON STOCKS (Cost $92,006,911)			$	93,328,725


SHORT TERM INVESTMENTS - 25.06%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	23,408,260	$	23,408,260

TOTAL SHORT TERM INVESTMENTS
(Cost $23,408,260)			$	23,408,260


REPURCHASE AGREEMENTS - 0.51%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$481,053 on 9/1/2006,
collateralized by $480,000 Federal
Home Loan Mortgage Corp.,
6.065% due 05/16/2016 (valued at
$492,115, including interest) (c)	$	481,000	$	481,000

TOTAL REPURCHASE AGREEMENTS
(Cost $481,000)			$	481,000

Total Investments (Small Company Fund)
(Cost $115,896,171) - 125.47%			$	117,217,985
Liabilities in Excess of Other Assets - (25.47)%				(23,792,419)

TOTAL NET ASSETS - 100.00%			$	93,425,566

The accompanying notes are an integral part of the financial statements. 351

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Growth Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 97.82%
Advertising - 1.48%
Aquantive, Inc. *	24,830	$	615,784
ValueClick, Inc. *	27,057		477,556

			1,093,340
Aerospace - 0.52%
TransDigm Group, Inc. *	16,852		381,361
Agriculture - 0.76%
Delta & Pine Land Company	13,828		559,481
Apparel & Textiles - 0.99%
Joseph A. Bank Clothiers, Inc. *	10,671		255,357
Warnaco Group, Inc. *	23,505		473,156

			728,513
Banking - 4.86%
East West Bancorp, Inc.	18,956		767,718
Greenhill & Company, Inc.	6,101		335,738
PrivateBancorp, Inc.	9,055		402,042
SVB Financial Group *	12,407		560,672
Texas Capital Bancshares, Inc. *	15,342		304,539
Texas Regional Bancshares, Inc., Class A	10,044		384,384
UCBH Holdings, Inc.	32,151		583,219
Virginia Commerce Bancorp, Inc. *	11,286		250,098

			3,588,410
Biotechnology - 3.44%
Human Genome Sciences, Inc. *	27,250		306,017
Integra LifeSciences Holdings Corp. *	14,941		574,631
Millipore Corp. *	6,486		416,271
Myogen, Inc. *	8,912		310,138
Myriad Genetics, Inc. *	19,726		498,871
Nektar Therapeutics *	24,872		435,757

			2,541,685
Building Materials & Construction - 0.66%
Eagle Materials, Inc.	13,688		490,715
Business Services - 4.73%
CoStar Group, Inc. *	12,651		509,582
Euronet Worldwide, Inc. *	19,677		478,151
Global Payments, Inc.	9,359		356,110
Informatica Corp. *	40,881		598,498
Jackson Hewitt Tax Service, Inc.	12,963		409,631
Korn/Ferry International *	31,341		639,983
MPS Group, Inc. *	35,784		503,123

			3,495,078
Computers & Business Equipment - 1.77%
Cogent, Inc. *	21,099		301,294
Kronos, Inc. *	13,314		406,343
Micros Systems, Inc. *	12,541		600,212

			1,307,849
Construction & Mining Equipment - 0.90%
Bucyrus International, Inc., Class A	12,855		663,704
Construction Materials - 1.37%
JLG Industries, Inc.	26,253		458,378

Small Company Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Construction Materials (continued)
Regal-Beloit Corp.	12,920	$	557,627

			1,016,005
Crude Petroleum & Natural Gas - 2.30%
Bill Barrett Corp. *	16,291		471,136
Hydril *	8,586		561,954
Unit Corp. *	12,650		666,781

			1,699,871
Domestic Oil - 2.00%
Encore Aquisition Company *	20,431		552,658
Range Resources Corp.	19,152		535,873
Whiting Petroleum Corp. *	8,667		390,015

			1,478,546
Drugs & Health Care - 1.15%
CV Therapeutics, Inc. *	13,537		152,291
Mentor Corp.	14,401		699,025

			851,316
Electrical Equipment - 3.81%
General Cable Corp. *	19,363		746,056
Sirf Technology Holdings, Inc. *	21,940		577,680
Varian, Inc. *	17,250		805,230
Wesco International, Inc. *	11,723		685,796

			2,814,762
Electrical Utilities - 0.78%
Pike Electric Corp. *	32,943		577,820
Electronics - 2.22%
Thomas & Betts Corp. *	17,243		778,694
Trimble Navigation, Ltd. *	17,634		863,536

			1,642,230
Financial Services - 1.36%
Affiliated Managers Group, Inc. *	7,820		723,585
National Financial Partners Corp.	7,643		281,415

			1,005,000
Food & Beverages - 0.66%
Performance Food Group Company *	19,729		485,531
Healthcare Products - 4.76%
American Medical Systems Holdings, Inc. *	32,808		576,109
Cyberonics, Inc. *	18,544		301,896
Gen-Probe, Inc. *	11,329		550,703
Kyphon, Inc. *	10,794		390,851
Nuvasive, Inc. *	27,705		569,615
The Medicines Company *	21,108		476,196
Wright Medical Group, Inc. *	28,483		651,406

			3,516,776
Healthcare Services - 4.39%
Genesis HealthCare Corp. *	13,149		598,806
Magellan Health Services, Inc. *	11,628		558,958
Palomar Medical Technologies, Inc. *	2,608		103,538
Pediatrix Medical Group, Inc. *	15,193		695,839
Per-Se Technologies, Inc. *	26,984		614,965

The accompanying notes are an integral part of the financial statements. 352

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Services (continued)
The Advisory Board Company *	13,277	$	674,737

			3,246,843
Holdings Companies/Conglomerates - 0.79%
United Industrial Corp.	10,811		582,388
Hotels & Restaurants - 4.07%
Applebee's International, Inc.	18,946		393,129
Choice Hotels, Inc.	12,361		468,605
Four Seasons Hotels, Inc.	7,960		502,356
Jack In the Box, Inc. *	12,911		619,470
P.F. Chang's China Bistro, Inc. *	14,515		511,654
RARE Hospitality International, Inc. *	18,029		516,351

			3,011,565
Household Products - 1.84%
Church & Dwight, Inc.	15,559		599,021
Tempur-Pedic International, Inc. *	47,498		762,343

			1,361,364
Industrial Machinery - 2.45%
Actuant Corp., Class A	10,628		479,323
Ceradyne, Inc. *	13,111		577,802
FMC Technologies, Inc. *	12,857		756,248

			1,813,373
Insurance - 1.69%
HCC Insurance Holdings, Inc.	19,135		621,696
ProAssurance Corp. *	12,436		625,531

			1,247,227
Internet Content - 0.53%
Digitas, Inc. *	43,498		388,872
Internet Service Provider - 0.82%
NETGEAR, Inc. *	30,682		603,515
Internet Software - 0.86%
F5 Networks, Inc. *	12,682		635,241
Manufacturing - 1.76%
Acuity Brands, Inc.	14,992		640,608
Coherent, Inc. *	18,221		660,694

			1,301,302
Medical-Hospitals - 1.99%
Lifepoint Hospitals, Inc. *	17,507		596,113
VCA Antech, Inc. *	24,648		873,032

			1,469,145
Mining - 0.69%
Lincoln Electric Holding, Inc.	9,253		509,193
Petroleum Services - 3.97%
Core Laboratories N.V. *	11,167		819,323
Grey Wolf, Inc. *	70,695		516,780
Superior Energy Services, Inc. *	23,372		746,268
Veritas DGC, Inc. *	14,249		848,813

			2,931,184

Small Company Growth Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Pharmaceuticals - 2.56%
Alkermes, Inc. *	24,301	$	397,321
Medicis Pharmaceutical Corp., Class A	16,575		485,482
Sciele Pharma, Inc. *	27,125		474,688
United Therapeutics Corp. *	9,795		534,709

			1,892,200
Real Estate - 0.79%
BioMed Realty Trust, Inc., REIT	18,749		583,844
Retail Trade - 6.46%
Charlotte Russe Holding, Inc. *	19,538		521,665
Childrens Place Retail Stores, Inc. *	10,308		597,555
Coldwater Creek, Inc. *	27,739		761,990
Dick's Sporting Goods, Inc. *	15,540		642,268
DSW, Inc., Class A *	13,674		382,735
Hot Topic, Inc. *	45,687		451,388
Longs Drug Stores Corp.	13,293		603,901
Regis Corp.	11,724		430,154
United Rentals, Inc. *	17,846		386,544

			4,778,200
Semiconductors - 7.16%
Cirrus Logic, Inc. *	73,299		536,549
Emulex Corp. *	46,690		808,671
FormFactor, Inc. *	11,806		569,757
Microsemi Corp. *	30,039		834,183
Power Integrations, Inc. *	35,512		653,421
Silicon Laboratories, Inc. *	14,917		526,122
Tessera Technologies, Inc. *	20,542		675,832
Varian Semiconductor Equipment Associates,
Inc. *	19,412		685,438

			5,289,973
Software - 6.35%
Allscripts Healthcare Solution, Inc. *	26,677		543,144
ANSYS, Inc. *	13,012		608,181
Blackboard, Inc. *	22,572		601,544
Eclipsys Corp. *	30,779		526,321
Epicor Software Corp. *	40,236		498,121
MicroStrategy, Inc., Class A *	6,639		605,477
Orbotech, Ltd. *	15,259		366,368
THQ, Inc. *	36,489		941,416

			4,690,572
Steel - 0.89%
Carpenter Technology Corp.	6,873		658,708
Telecommunications Equipment &
Services - 4.49%
Aeroflex, Inc. *	47,837		498,462
NeuStar, Inc., Class A *	18,913		533,725
NICE Systems, Ltd. *	26,320		656,947
Polycom, Inc. *	34,079		810,739
SBA Communications Corp. *	31,894		820,952

			3,320,825

The accompanying notes are an integral part of the financial statements. 353

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Growth Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Toys, Amusements & Sporting Goods - 0.84%
Marvel Entertainment, Inc. *		29,002	$	621,803
Trucking & Freight - 1.91%
Forward Air Corp.		16,244		522,082
Hub Group, Inc., Class A *		17,887		416,767
Swift Transportation, Inc. *		20,447		474,166

				1,413,015

TOTAL COMMON STOCKS (Cost $67,407,445)			$	72,288,345


REPURCHASE AGREEMENTS - 1.94%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
4.95% to be repurchased at
$1,437,198 on 9/1/2006,
collateralized by $1,490,000
Federal Home Loan Bank, 4.125%
due 02/15/2008 (valued at
$1,470,381, including interest) (c)	$	1,437,000	$	1,437,000

TOTAL REPURCHASE AGREEMENTS
(Cost $1,437,000)			$	1,437,000

Total Investments (Small Company Growth Fund)
(Cost $68,844,445) - 99.76%			$	73,725,345
Other Assets in Excess of Liabilities - 0.24%				175,450

TOTAL NET ASSETS - 100.00%			$	73,900,795



Small Company Value Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 97.76%
Aerospace - 1.13%
EDO Corp. (a)		59,200 $		1,381,136
Woodward Governor Company		89,200		3,003,364

				4,384,500
Apparel & Textiles - 0.81%
Culp, Inc. *		40,000		203,600
G & K Services, Class A		88,200		2,926,476

				3,130,076
Auto Parts - 0.24%
Accuride Corp. * (a)		85,000		927,350
Auto Services - 1.13%
Dollar Thrifty Automotive Group, Inc. * (a)		102,500		4,374,700
Banking - 7.68%
Boston Private Financial Holdings, Inc. (a)		73,500		1,834,560
East West Bancorp, Inc.		155,700		6,305,850
First Republic Bank (a)		159,700		6,806,414
Home Bancshares, Inc.		14,300		302,445
Netbank, Inc.		147,200		903,808
SVB Financial Group * (a)		121,000		5,467,990
Texas Regional Bancshares, Inc., Class A (a)		191,469		7,327,519

Small Company Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Banking (continued)
Wintrust Financial Corp.	16,776	$	844,000

			29,792,586
Biotechnology - 1.34%
Exelixis, Inc. * (a)	155,700		1,514,961
Myriad Genetics, Inc. * (a)	145,600		3,682,224

			5,197,185
Broadcasting - 0.28%
Saga Communications, Inc., Class A *	136,500		1,086,540
Building Materials & Construction - 0.43%
ElkCorp (a)	58,800		1,656,396
Business Services - 3.85%
Electro Rent Corp. *	139,000		2,239,290
FTI Consulting, Inc. * (a)	126,000		2,814,840
McGrath Rentcorp (a)	158,500		3,613,800
MPS Group, Inc. *	312,500		4,393,750
StarTek, Inc. (a)	113,900		1,295,043
Wireless Facilities, Inc. * (a)	269,700		590,643

			14,947,366
Chemicals - 3.24%
Airgas, Inc.	117,300		4,201,686
Arch Chemicals, Inc.	100,000		2,774,000
Innospec, Inc. (a)	86,000		2,358,980
MacDermid, Inc.	113,400		3,248,910

			12,583,576
Commercial Services - 1.45%
Live Nation, Inc. * (a)	48,700		1,021,726
Pool Corp. (a)	121,100		4,610,277

			5,632,003
Construction & Mining Equipment - 0.48%
Carbo Ceramics, Inc. (a)	46,700		1,865,198
Construction Materials - 3.55%
Ameron International Corp. (a)	43,500		3,051,090
Florida Rock Industries, Inc. (a)	93,337		3,471,203
JLG Industries, Inc.	321,300		5,609,898
Universal Forest Products, Inc.	33,900		1,652,964

			13,785,155
Crude Petroleum & Natural Gas - 1.76%
Penn Virginia Corp.	96,300		6,836,337
Domestic Oil - 2.50%
Forest Oil Corp. * (a)	108,700		3,681,669
Mariner Energy, Inc. * (a)	86,002		1,625,438
Union Drilling, Inc. * (a)	39,000		555,750
Whiting Petroleum Corp. * (a)	85,200		3,834,000

			9,696,857
Drugs & Health Care - 2.42%
Arrow International, Inc. (a)	65,200		2,106,612
Diversa Corp. * (a)	190,700		1,754,440
Landauer, Inc. (a)	37,800		1,811,376

The accompanying notes are an integral part of the financial statements. 354

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Drugs & Health Care (continued)
West Pharmaceutical Services, Inc. (a)	93,100	$	3,715,621

			9,388,049
Electrical Equipment - 2.08%
C & D Technologies, Inc. (a)	118,000		938,100
Genlyte Group, Inc. *	55,200		3,617,256
Littelfuse, Inc. *	84,044		3,034,829
Methode Electronics, Inc., Class A	61,800		490,692

			8,080,877
Electrical Utilities - 2.45%
Black Hills Corp. (a)	96,000		3,341,760
Cleco Corp. (a)	122,900		3,067,584
El Paso Electric Company *	128,700		3,077,217

			9,486,561
Electronics - 2.98%
Analogic Corp. (a)	26,600		1,511,678
Belden CDT, Inc. (a)	123,950		4,429,973
Franklin Electric, Inc. (a)	116,700		5,626,107

			11,567,758
Energy - 0.04%
GeoMet, Inc. *	12,600		135,450
Financial Services - 0.35%
American Capital Strategies, Ltd. (a)	34,900		1,351,677
Food & Beverages - 0.06%
Centerplate, Inc. (a)	14,600		216,956
Forest Products - 0.81%
Deltic Timber Corp. (a)	66,000		3,130,380
Furniture & Fixtures - 0.64%
Stanley Furniture Company, Inc. (a)	99,400		2,479,036
Gas & Pipeline Utilities - 1.48%
Southwest Gas Corp.	90,000		3,033,000
Valley National Gases, Inc. (a)	31,000		966,580
Vectren Corp.	63,500		1,750,060

			5,749,640
Gold - 0.69%
Meridian Gold, Inc. * (a)	90,500		2,691,470
Healthcare Products - 1.31%
Owens & Minor, Inc.	157,600		5,069,992
Homebuilders - 0.11%
M/I Homes, Inc.	12,500		404,500
Hotels & Restaurants - 1.55%
RARE Hospitality International, Inc. *	147,000		4,210,080
Ruby Tuesday, Inc. (a)	69,900		1,804,818

			6,014,898
Industrial Machinery - 1.04%
IDEX Corp.	96,250		4,041,538
Insurance - 4.17%
Markel Corp. * (a)	9,600		3,487,968
Max Re Capital, Ltd.	119,100		2,764,311

Small Company Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
Midland Company (a)	78,500	$	3,249,900
ProAssurance Corp. * (a)	132,700		6,674,810

			16,176,989
Internet Software - 1.05%
RSA Security, Inc. *	145,700		4,057,745
Investment Companies - 1.69%
Allied Capital Corp. (a)	93,800		2,869,342
First Financial Fund, Inc. * (a)	185,500		3,183,180
Hercules Technology Growth Capital, Inc. (a)	43,999		519,188

			6,571,710
Life Sciences - 0.47%
Symyx Technologies, Inc. * (a)	79,500		1,820,550
Manufacturing - 2.01%
AptarGroup, Inc.	76,900		3,960,350
Nordson Corp.	96,200		3,851,848

			7,812,198
Metal & Metal Products - 2.83%
Gibraltar Industries, Inc.	130,300		3,153,260
Matthews International Corp., Class A	137,600		4,898,560
Metal Management, Inc.	114,300		2,923,794

			10,975,614
Mobile Homes - 1.25%
Skyline Corp. (a)	53,200		2,075,332
Winnebago Industries, Inc. (a)	94,600		2,762,320

			4,837,652
Mutual Funds - 0.71%
iShares Russell 2000 Index Fund (a)	15,000		1,076,550
iShares Russell 2000 Value Index Fund (a)	23,000		1,692,340

			2,768,890
Newspapers - 0.23%
Journal Register Company	123,500		901,550
Paper - 1.25%
Chesapeake Corp. (a)	36,700		532,150
Potlatch Corp. (a)	55,400		2,122,374
Wausau-Mosinee Paper Corp. (a)	161,000		2,191,210

			4,845,734
Petroleum Services - 4.76%
Atwood Oceanics, Inc. * (a)	59,200		2,545,600
Lone Star Technologies, Inc. *	41,900		1,899,327
TETRA Technologies, Inc. *	245,900		6,838,479
Todco, Class A * (a)	106,800		3,954,804
W-H Energy Services, Inc. *	63,800		3,219,986

			18,458,196
Pharmaceuticals - 0.39%
Pharmion Corp. * (a)	80,300		1,491,974
Publishing - 0.07%
Courier Corp. (a)	7,700		283,668

The accompanying notes are an integral part of the financial statements. 355

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Small Company Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Railroads & Equipment - 0.93%
Genesee & Wyoming, Inc., Class A * (a)	144,150	$	3,587,893
Real Estate - 6.81%
Columbia Equity Trust, Inc., REIT (a)	61,000		921,100
First Potomac Realty Trust, REIT	103,200		3,200,232
Glenborough Realty Trust, Inc., REIT (a)	61,500		1,587,315
Innkeepers USA Trust, REIT	90,600		1,500,336
Kilroy Realty Corp., REIT	100,800		7,970,256
LaSalle Hotel Properties, REIT (a)	99,500		4,372,030
Strategic Hotel Cap, Inc., REIT (a)	159,000		3,243,600
Washington Real Estate Investment Trust,
REIT (a)	89,100		3,619,242

			26,414,111
Retail Grocery - 0.59%
Nash-Finch Company (a)	45,100		1,030,535
Wild Oats Markets, Inc. * (a)	78,000		1,274,520

			2,305,055
Retail Trade - 5.44%
Aaron Rents, Inc., Class A	5,350		115,239
Aaron Rents, Inc., Class B (a)	267,500		6,262,175
Building Materials Holding Corp. (a)	78,500		2,050,420
Casey's General Stores, Inc. (a)	136,600		3,229,224
CSS Industries, Inc.	75,500		2,249,145
Fred's, Inc., Class A (a)	115,400		1,512,894
Hancock Fabrics, Inc. (a)	93,100		276,507
Haverty Furniture Companies, Inc. (a)	179,100		2,516,355
Stein Mart, Inc.	244,000		2,901,160

			21,113,119
Sanitary Services - 2.37%
Casella Waste Systems, Inc., Class A * (a)	170,600		2,007,962
Insituform Technologies, Inc., Class A * (a)	173,700		3,986,415
Synagro Technologies, Inc. (a)	101,900		406,581
Waste Connections, Inc. *	76,200		2,801,874

			9,202,832
Semiconductors - 2.33%
ATMI, Inc. * (a)	70,200		2,026,674
Brooks Automation, Inc. *	311,000		4,322,900
Entegris, Inc. * (a)	248,537		2,699,112

			9,048,686
Software - 2.76%
Packeteer, Inc. * (a)	149,300		1,500,465
Progress Software Corp. *	135,000		3,418,200
SPSS, Inc. *	109,100		2,767,867
Websense, Inc. *	146,000		3,017,820

			10,704,352
Steel - 1.17%
Carpenter Technology Corp. (a)	47,400		4,542,816
Telecommunications Equipment &
Services - 0.51%
Premiere Global Services, Inc. * (a)	253,500		1,977,300

Small Company Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Tires & Rubber - 0.55%
Myers Indiana, Inc.		129,000	$	2,119,470
Tobacco - 0.19%
Alliance One International, Inc. (a)		183,000		737,490
Transportation - 3.09%
Kirby Corp. * (a)		163,400		4,792,522
Macquarie Infrastructure Company Trust (a)		97,300		3,162,250
UTI Worldwide, Inc. (a)		174,300		4,017,615

				11,972,387
Trucking & Freight - 2.26%
Landstar Systems, Inc. (a)		205,500		8,774,850

TOTAL COMMON STOCKS (Cost $347,050,382)			$	379,207,438


SHORT TERM INVESTMENTS - 26.00%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	95,479,263	$	95,479,263
T. Rowe Price Reserve Investment Fund (c)		5,388,413		5,388,413

TOTAL SHORT TERM INVESTMENTS
(Cost $100,867,676)			$	100,867,676


REPURCHASE AGREEMENTS - 0.86%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$3,343,367 on 9/1/2006,
collateralized by $3,390,000
Federal National Mortgage
Association, 5.125% due
12/15/2008 (valued at $3,411,188,
including interest) (c)	$	3,343,000	$	3,343,000

TOTAL REPURCHASE AGREEMENTS
(Cost $3,343,000)			$	3,343,000

Total Investments (Small Company Value Fund)
(Cost $451,261,058) - 124.62%			$	483,418,114
Liabilities in Excess of Other Assets - (24.62)%				(95,503,020)

TOTAL NET ASSETS - 100.00%			$	387,915,094



Special Value Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 86.19%
Aerospace - 1.85%
HEICO Corp., Class A (a)		39,601	$	1,072,395
Orbital Sciences Corp., Class A *		71,205		1,288,099

				2,360,494
Air Travel - 1.21%
Airtran Holdings, Inc. * (a)		95,300		1,091,185
SkyWest, Inc.		18,753		453,260

				1,544,445

The accompanying notes are an integral part of the financial statements. 356

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Special Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Apparel & Textiles - 0.80%
Timberland Company, Class A *	36,004	$	1,022,874
Auto Parts - 0.77%
Lear Corp. (a)	48,078		977,907
Banking - 10.62%
BancTrust Financial Group, Inc. (a)	32,511		863,167
Cascade Financial Corp.	40,186		642,976
Central Pacific Financial Corp. (a)	39,133		1,416,223
City Bank Lynnwood WA (a)	4,493		228,559
City National Corp. (a)	9,400		618,520
Cullen Frost Bankers, Inc.	20,380		1,201,605
First Security Group, Inc. (a)	70,461		799,732
First State BanCorp. (a)	42,275		1,081,817
IBERIABANK Corp. (a)	7,952		463,602
Investors Financial Services Corp. (a)	14,400		667,584
Midwest Banc Holdings, Inc. (a)	44,910		1,076,493
Tompkins Trustco, Inc. (a)	7,506		336,719
UCBH Holdings, Inc. (a)	113,800		2,064,332
Umpqua Holdings Corp. (a)	49,225		1,347,288
Webster Financial Corp.	15,753		744,172

			13,552,789
Building Materials & Construction - 0.99%
EMCOR Group, Inc. *	22,834		1,265,917
Business Services - 4.62%
Black Box Corp.	24,544		945,926
John H. Harland Company (a)	20,747		775,108
Korn/Ferry International * (a)	10,963		223,865
Labor Ready, Inc. *	57,864		991,210
Perot Systems Corp., Class A * (a)	85,054		1,221,375
Watson Wyatt Worldwide, Inc., Class A (a)	43,773		1,736,037

			5,893,521
Chemicals - 0.41%
Cabot Microelectronics Corp. * (a)	16,510		519,074
Computers & Business Equipment - 1.81%
Foundry Networks, Inc. *	113,500		1,381,295
Rimage Corp. * (a)	16,590		389,201
Tech Data Corp. *	15,509		541,109

			2,311,605
Construction & Mining Equipment - 1.62%
National Oilwell, Inc. *	31,667		2,067,855
Construction Materials - 0.47%
Patrick Industries, Inc. * (a)	47,053		598,985
Cosmetics & Toiletries - 0.65%
Steiner Leisure, Ltd. *	21,428		824,549
Crude Petroleum & Natural Gas - 1.11%
XTO Energy, Inc. (a)	30,968		1,417,405
Domestic Oil - 1.32%
Denbury Resources, Inc. *	54,230		1,681,672
Electrical Equipment - 1.04%
Tektronix, Inc.	47,067		1,333,879

Special Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electrical Utilities - 0.20%
MGE Energy, Inc. (a)	7,705	$	258,965
Electronics - 3.11%
ATI Technologies, Inc. *	62,855		1,350,754
Bel Fuse, Inc., Class B (a)	10,456		386,559
DRS Technologies, Inc. (a)	35,622		1,473,682
Mercury Computer Systems, Inc. * (a)	60,715		754,080

			3,965,075
Energy - 0.52%
New Jersey Resources Corp. (a)	13,302		660,577
Financial Services - 1.77%
Financial Federal Corp. (a)	28,615		749,713
Portfolio Recovery Associates, Inc. * (a)	38,058		1,511,664

			2,261,377
Food & Beverages - 1.56%
Del Monte Foods Company	154,961		1,720,067
Pilgrim's Pride Corp. (a)	11,200		272,832

			1,992,899
Furniture & Fixtures - 0.57%
Furniture Brands International, Inc. (a)	37,769		723,276
Gas & Pipeline Utilities - 0.50%
Northwest Natural Gas Company (a)	16,589		634,529
Gold - 0.36%
Meridian Gold, Inc. *	15,470		460,078
Healthcare Services - 3.77%
Amerigroup Corp. * (a)	37,040		1,168,242
Apria Healthcare Group, Inc. * (a)	34,881		711,223
Cross Country Healthcare, Inc. * (a)	64,305		1,055,888
Enzo Biochem, Inc. * (a)	35,300		451,134
MedQuist, Inc. *	50,225		502,250
National Dentex Corp. * (a)	43,827		931,324

			4,820,061
Hotels & Restaurants - 1.31%
O'Charley's, Inc. * (a)	72,791		1,345,906
OSI Restaurant Partners, Inc. (a)	10,600		328,282

			1,674,188
Household Products - 0.49%
Tupperware Brands Corp.	34,800		626,748
Industrial Machinery - 3.96%
Albany International Corp., Class A (a)	35,283		1,232,082
IDEX Corp.	35,062		1,472,254
Kennametal, Inc.	21,087		1,112,128
Sauer-Danfoss, Inc. (a)	55,071		1,241,851

			5,058,315
Industrials - 1.91%
Crane Company	43,484		1,738,490
Harsco Corp.	8,777		698,298

			2,436,788

The accompanying notes are an integral part of the financial statements. 357

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Special Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance - 4.54%
CNA Surety Corp. *	49,026	$	975,617
Midland Company (a)	33,942		1,405,199
PMI Group, Inc. (a)	37,333		1,614,279
Triad Guaranty, Inc. * (a)	35,824		1,800,873

			5,795,968
Internet Service Provider - 0.98%
NETGEAR, Inc. * (a)	63,600		1,251,012
Internet Software - 0.76%
McAfee, Inc. *	42,662		970,987
Leisure Time - 0.96%
Callaway Golf Company (a)	50,600		678,546
K2, Inc. * (a)	46,532		542,098

			1,220,644
Manufacturing - 5.22%
AptarGroup, Inc.	21,527		1,108,640
Goodman Global, Inc. *	14,720		185,325
Input/Output, Inc. * (a)	36,900		367,893
Kaydon Corp.	40,127		1,529,240
Pentair, Inc. (a)	42,840		1,280,916
Roper Industries, Inc.	28,768		1,334,260
Snap-on, Inc.	19,755		863,294

			6,669,568
Medical-Hospitals - 0.53%
RehabCare Group, Inc. * (a)	46,567		683,604
Metal & Metal Products - 2.97%
Gibraltar Industries, Inc.	52,399		1,268,056
Mueller Industries, Inc.	26,802		1,027,053
RBC Bearings, Inc. *	14,700		312,669
Timken Company (a)	37,139		1,189,933

			3,797,711
Mutual Funds - 5.76%
iShares Nasdaq Biotechnology Index Fund * (a)	16,150		1,190,901
iShares Russell 2000 Value Index Fund (a)	83,723		6,160,338

			7,351,239
Office Furnishings & Supplies - 0.65%
United Stationers, Inc. *	18,171		832,777
Petroleum Services - 0.23%
Superior Well Services, Inc. * (a)	13,665		294,207
Pharmaceuticals - 0.59%
Bentley Pharmaceuticals, Inc. * (a)	67,083		752,671
Railroads & Equipment - 0.91%
Wabtec Corp.	41,079		1,158,839
Real Estate - 5.17%
American Land Lease, Inc., REIT	19,998		478,552
Cousins Properties, Inc., REIT (a)	33,547		1,153,010
Duke Realty Corp., REIT	14,009		532,062
Host Hotels & Resorts, Inc., REIT	44,695		1,007,425
LaSalle Hotel Properties, REIT	27,320		1,200,441
Liberty Property Trust, REIT	12,496		598,184

Special Value Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Real Estate (continued)
Pan Pacific Retail Properties, Inc., REIT (a)		23,337	$	1,629,389

				6,599,063
Retail Trade - 2.92%
Cato Corp., Class A		49,598		1,152,162
Deb Shops, Inc. (a)		37,695		888,848
Dillard's, Inc., Class A (a)		32,771		1,021,800
The Buckle, Inc. (a)		19,777		670,440

				3,733,250
Semiconductors - 1.09%
Exar Corp. *		58,833		822,485
OmniVision Technologies, Inc. * (a)		34,300		569,380

				1,391,865
Software - 0.87%
Dendrite International, Inc. *		43,037		431,231
EPIQ Systems, Inc. * (a)		45,517		677,293

				1,108,524
Tires & Rubber - 0.98%
Cooper Tire & Rubber Company (a)		126,790		1,246,346
Transportation - 0.88%
Kirby Corp. *		38,438		1,127,387
Trucking & Freight - 0.86%
Arkansas Best Corp. (a)		24,803		1,095,052

TOTAL COMMON STOCKS (Cost $102,602,402)			$	110,026,561


SHORT TERM INVESTMENTS - 24.37%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	31,115,018	$	31,115,018

TOTAL SHORT TERM INVESTMENTS
(Cost $31,115,018)			$	31,115,018


REPURCHASE AGREEMENTS - 14.14%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$18,054,981 on 09/01/2006,
collateralized by $19,745,000
Federal National Mortgage
Association, 5.55% due
07/10/2028 (valued at
$18,414,720, including interest) (c)	$	18,053,000	$	18,053,000

TOTAL REPURCHASE AGREEMENTS
(Cost $18,053,000)			$	18,053,000

Total Investments (Special Value Fund)
(Cost $151,770,420) - 124.70%			$	159,194,579
Liabilities in Excess of Other Assets - (24.70)%				(31,532,786)

TOTAL NET ASSETS - 100.00%			$	127,661,793

The accompanying notes are an integral part of the financial statements. 358

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund
	Shares or
	Principal
	Amount		Value


COMMON STOCKS - 17.46%
Aerospace - 0.20%
Lockheed Martin Corp.	5,200	$	429,520
Raytheon Company	22,500		1,062,225

			1,491,745
Aluminum - 0.10%
Alcoa, Inc.	26,500		757,635
Auto Parts - 0.10%
Genuine Parts Company	17,700		731,541
Automobiles - 0.04%
Ford Motor Company (a)	40,500		338,985
Banking - 0.74%
AmSouth Bancorp.	390		11,174
Bank of America Corp.	22,340		1,149,840
Bank of Ireland	10,400		196,902
Citizens Banking Corp.	300		7,560
Fifth Third Bancorp.	39,600		1,557,864
Mercantile Bankshares Corp.	11,400		421,002
National City Corp.	14,800		511,784
Northern Trust Corp.	400		22,396
Regions Financial Corp.	660		23,753
SunTrust Banks, Inc.	13,900		1,061,960
US Bancorp	2,830		90,758
Wells Fargo Company	16,600		576,850

			5,631,843
Biotechnology - 0.08%
MedImmune, Inc. *	20,800		574,912
Broadcasting - 0.14%
CBS Corp., Class B	36,950		1,054,923
Business Services - 0.09%
H & R Block, Inc.	33,200		698,196
Cable and Television - 0.55%
Comcast Corp., Class A * (a)	25,200		882,000
EchoStar Communications Corp., Class A *	14,100		447,675
Rogers Communications, Inc.	5,875		302,915
Time Warner, Inc.	97,500		1,620,450
Viacom, Inc. *	25,650		931,095

			4,184,135
Cellular Communications - 0.10%
Motorola, Inc.	31,800		743,484
Chemicals - 0.24%
Chemtura Corp.	32,500		282,425
E.I. Du Pont De Nemours & Company	34,590		1,382,562
Hercules, Inc. *	10,400		162,240

			1,827,227
Computers & Business Equipment - 0.46%
Cisco Systems, Inc. *	50,400		1,108,296
Dell, Inc. *	38,000		856,900
International Business Machines Corp.	19,600		1,587,012

			3,552,208

Spectrum Income Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Construction Materials - 0.11%
Vulcan Materials Company	11,100	$	872,571
Cosmetics & Toiletries - 0.62%
Avon Products, Inc.	36,200		1,039,302
Colgate-Palmolive Company	29,200		1,747,912
International Flavors & Fragrances, Inc.	26,200		1,041,974
Kimberly-Clark Corp.	13,900		882,650


			4,711,838
Domestic Oil - 0.11%
Murphy Oil Corp. (a)	17,700		865,707
Drugs & Health Care - 0.20%
Wyeth	31,300		1,524,310
Electrical Equipment - 0.09%
Cooper Industries, Ltd., Class A	8,300		679,604
Electrical Utilities - 0.38%
Entergy Corp.	16,000		1,242,400
FirstEnergy Corp.	15,500		884,430
Pinnacle West Capital Corp.	11,700		537,498
TECO Energy, Inc.	16,000		252,320


			2,916,648
Electronics - 0.12%
Sony Corp.	20,500		887,393
Energy - 0.43%
Duke Energy Corp.	48,840		1,465,200
Progress Energy, Inc.	21,700		961,961
Xcel Energy, Inc.	42,330		880,464


			3,307,625
Financial Services - 1.47%
Charles Schwab Corp.	76,400		1,246,084
Citigroup, Inc.	14,240		702,744
Federal National Mortgage Association	12,500		658,125
Janus Capital Group, Inc.	11,300		200,914
JPMorgan Chase & Company	77,900		3,556,914
Mellon Financial Corp.	41,200		1,533,876
Morgan Stanley	32,000		2,105,280
State Street Corp. (c)	19,600		1,211,280
Washington Mutual, Inc.	240		10,054


			11,225,271
Food & Beverages - 0.62%
Campbell Soup Company	20,400		766,428
General Mills, Inc.	22,500		1,220,175
McCormick & Company, Inc.	16,800		611,856
Sara Lee Corp.	14,900		247,787
Sysco Corp.	11,200		351,568
The Coca-Cola Company	35,100		1,572,831


			4,770,645
Gas & Pipeline Utilities - 0.21%
NiSource, Inc.	65,460		1,385,788
Williams Companies, Inc.	9,695		238,788


			1,624,576

The accompanying notes are an integral part of the financial statements. 359

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Healthcare Products - 0.37%
Baxter International, Inc.	18,800	$	834,344
Boston Scientific Corp. *	30,200		526,688
Johnson & Johnson	23,200		1,500,112

			2,861,144
Holdings Companies/Conglomerates - 0.50%
General Electric Company	112,700		3,838,562
Homebuilders - 0.06%
D.R. Horton, Inc. (a)	20,700		453,951
Household Products - 0.28%
Fortune Brands, Inc.	11,000		798,600
Newell Rubbermaid, Inc.	48,400		1,306,316

			2,104,916
Industrial Machinery - 0.21%
Deere & Company	11,200		874,720
Pall Corp.	27,300		743,106

			1,617,826
Insurance - 1.00%
American International Group, Inc.	27,800		1,774,196
Chubb Corp.	12,600		632,016
Lincoln National Corp.	21,300		1,292,910
Marsh & McLennan Companies, Inc.	77,100		2,016,936
St. Paul Travelers Companies, Inc.	24,800		1,088,720
UnumProvident Corp. (a)	44,200		837,590

			7,642,368
International Oil - 0.95%
Anadarko Petroleum Corp.	21,600		1,013,256
ChevronTexaco Corp.	41,850		2,695,140
Hess Corp.	31,780		1,454,888
Royal Dutch Shell PLC, ADR	30,800		2,123,352

			7,286,636
Investment Companies - 0.01%
Allied Capital Corp. (a)	2,300		70,357
Leisure Time - 0.22%
Lakes Gaming, Inc. * (a)	18,850		183,222
Regal Entertainment Group, Class A (a)	12,425		245,145
Walt Disney Company	42,000		1,245,300

			1,673,667
Liquor - 0.22%
Anheuser-Busch Companies, Inc.	33,300		1,644,354
Manufacturing - 0.55%
3M Company	14,400		1,032,480
Eaton Corp.	7,300		485,450
Honeywell International, Inc.	44,200		1,711,424
Tyco International, Ltd.	36,400		951,860

			4,181,214
Newspapers - 0.29%
Dow Jones & Company, Inc. (a)	28,200		1,015,764
The New York Times Company, Class A (a)	52,300		1,177,796

			2,193,560

Spectrum Income Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Office Furnishings & Supplies - 0.16%
Avery Dennison Corp. (a)	19,200	$	1,189,248
Paper - 0.37%
International Paper Company	64,670		2,248,576
MeadWestvaco Corp.	23,220		593,271

			2,841,847
Petroleum Services - 0.63%
BP PLC, SADR	17,500		1,190,875
Exxon Mobil Corp.	39,700		2,686,499
Schlumberger, Ltd.	15,800		968,540

			4,845,914
Pharmaceuticals - 1.09%
Abbott Laboratories	23,800		1,159,060
Bristol-Myers Squibb Company	36,700		798,225
Eli Lilly & Company	28,400		1,588,412
Merck & Company, Inc.	57,540		2,333,247
Pfizer, Inc.	69,315		1,910,322
Schering-Plough Corp.	27,300		571,935

			8,361,201
Photography - 0.12%
Eastman Kodak Company (a)	42,900		912,483
Publishing - 0.23%
Tribune Company (a)	55,400		1,729,034
Railroads & Equipment - 0.30%
Norfolk Southern Corp.	15,100		645,223
Union Pacific Corp.	20,900		1,679,315

			2,324,538
Real Estate - 0.08%
Simon Property Group, Inc., REIT	6,300		534,177
Weingarten Realty Investors, REIT	2,585		109,656

			643,833
Retail Trade - 0.39%
Home Depot, Inc.	35,000		1,200,150
RadioShack Corp. (a)	22,600		408,156
Wal-Mart Stores, Inc.	31,400		1,404,208

			3,012,514
Sanitary Services - 0.15%
Synagro Technologies, Inc. (a)	26,900		107,331
Waste Management, Inc.	30,000		1,028,400

			1,135,731
Semiconductors - 0.18%
Analog Devices, Inc.	23,700		726,168
Intel Corp.	33,400		652,636

			1,378,804
Software - 0.31%
Microsoft Corp.	91,100		2,340,359
Telecommunications Equipment &
Services - 0.34%
Lucent Technologies, Inc. * (a)	154,600		360,218
Nokia Oyj, SADR	56,100		1,171,368

The accompanying notes are an integral part of the financial statements. 360

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Telecommunications Equipment &
Services (continued)
Telus Corp., Non Voting Shares		16,805	$	798,910
Telus Corp.		5,800		284,326

				2,614,822
Telephone - 0.99%
ALLTEL Corp.		20,000		1,084,200
AT&T, Inc.		75,835		2,360,743
Qwest Communications International, Inc. * (a)		175,600		1,547,036
Sprint Nextel Corp.		58,400		988,128
Verizon Communications, Inc.		36,700		1,291,106
Windstream Corp. *		20,678		272,950

				7,544,163
Tobacco - 0.09%
UST, Inc. (a)		12,820		677,665
Toys, Amusements & Sporting Goods - 0.17%
Mattel, Inc.		68,500		1,290,540

TOTAL COMMON STOCKS (Cost $122,773,152)			$	133,384,273


PREFERRED STOCKS - 0.30%
Broadcasting - 0.04%
Spanish Broadcasting System, Series B *		300		325,500
Building Materials & Construction - 0.07%
General Motors Corp., Series B * (a)		27,700		523,530
Energy - 0.04%
NRG Energy, Inc., Series 4 *		100		137,137
NRG Energy, Inc. * (a)		150		205,728

				342,865
Financial Services - 0.09%
Ford Motor Company Capital Trust II *		19,275		656,121
Telecommunications Equipment &
Services - 0.06%
Lucent Technologies Capital Trust I *		475		471,200

TOTAL PREFERRED STOCKS (Cost $2,262,011)			$	2,319,216


U.S. TREASURY OBLIGATIONS - 6.05%
Treasury Inflation Protected
Securities (d) - 0.24%
1.875% due 07/15/2013	$	276,148		269,308
2.00% due 07/15/2014 to 01/15/2026 (a)		1,309,230		1,281,744
3.625% due 01/15/2008 (a)		269,988		273,522

				1,824,574
U.S. Treasury Bonds - 3.20%
4.50% due 02/15/2036 (a)		1,215,000		1,143,524
5.375% due 02/15/2031 (a)		1,365,000		1,452,232
5.50% due 08/15/2028 (a)		477,000		512,663
6.00% due 02/15/2026 (a)		2,561,000		2,892,529
6.125% due 08/15/2029 (a)		877,000		1,019,512
6.25% due 08/15/2023 to 05/15/2030 (a)		4,798,000		5,610,594
6.375% due 08/15/2027 (a)		370,000		438,479
6.50% due 11/15/2026 (a)		800,000		956,875

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount	Value


U.S. TREASURY OBLIGATIONS
(continued)
U.S. Treasury Bonds (continued)
7.125% due 02/15/2023 (a)	$	2,006,000 $	2,490,573
7.50% due 11/15/2016 (a)		980,000	1,192,001
7.625% due 02/15/2025 (a)		1,311,000	1,730,418
7.875% due 02/15/2021 (a)		976,000	1,270,020
8.00% due 11/15/2021 (a)		270,000	357,476
8.875% due 08/15/2017 to 02/15/2019 (a)		2,490,000	3,384,534

			24,451,430
U.S. Treasury Notes - 2.53%
3.50% due 05/31/2007 (a)		235,000	232,347
3.625% due 06/30/2007 (a)		460,000	454,682
3.875% due 09/15/2010 (a)		2,215,000	2,148,377
4.00% due 03/15/2010		100,000	97,738
4.00% due 04/15/2010 to 02/15/2015 (a)		385,000	369,000
4.25% due 08/15/2013 to 11/15/2014 (a)		8,775,000	8,505,293
4.50% due 11/15/2015 (a)		960,000	942,525
4.75% due 03/31/2011 (a)		330,000	330,593
4.875% due 02/15/2012 (a)****		4,010,000	4,046,026
5.125% due 05/15/2016 (a)		2,085,000	2,144,210

			19,270,791
U.S. Treasury Strips - 0.08%
zero coupon due 05/15/2020		1,250,000	632,725

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $44,992,629)		$	46,179,520


U.S. GOVERNMENT AGENCY OBLIGATIONS - 19.89%
Federal Agricultural Mortgage Corp. - 0.05%
6.00% due 07/01/2021 to 08/01/2021		357,075	360,771
Federal Farm Credit Bank - 0.08%
1.875% due 01/16/2007		640,000	631,748
Federal Home Loan Bank - 0.20%
3.00% due 04/15/2009		600,000	571,643
3.875% due 08/22/2008		350,000	342,281
5.25% due 06/18/2014 (a)		590,000	596,119

			1,510,043
Federal Home Loan Mortgage Corp. - 2.19%
1.00% due 03/01/2036		630,895	620,161
3.55% due 11/15/2007		600,000	587,999
4.00% due 12/15/2009		425,000	411,731
4.50% due 10/01/2007 to 09/01/2035		1,362,602	1,305,196
4.522% due 09/01/2032		58,663	58,354
4.545% due 09/01/2035		340,192	328,737
4.625% due 02/21/2008		650,000	645,589
4.72% due 08/01/2035		488,920	476,578
4.788% due 07/01/2035		96,104	95,262
5.00% due 01/01/2009 to 11/01/2035		6,255,010	6,029,057
5.055% due 11/01/2035		267,935	263,115
5.125% due 02/27/2009 to 07/15/2012		2,395,000	2,398,377
5.428% due 01/01/2036		138,829	137,754
5.50% due 03/01/2018 to 04/01/2029		1,574,726	1,571,776
5.75% due 05/23/2011		465,000	467,278
6.00% due 11/01/2011 to 12/01/2033		301,074	303,279

The accompanying notes are an integral part of the financial statements. 361

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp.
(continued)
6.50% due 05/01/2017 to 01/01/2036	$	928,489	$	944,244
7.00% due 02/01/2024 to 06/01/2032		71,907		74,037
7.50% due 05/01/2024 to 06/01/2024		6,061		6,304
10.50% due 05/01/2019		947		962

				16,725,790
Federal National Mortgage
Association - 6.43%
1.00% due 10/01/2035 to 08/01/2036		2,421,870		2,398,129
3.25% due 08/15/2008 (a)		675,000		651,883
3.825% due 10/01/2033		209,552		203,826
3.875% due 07/15/2008		350,000		342,328
4.026% due 07/01/2027		2,427		2,435
4.375% due 09/15/2012 (a)		410,000		395,930
4.50% due 02/15/2011 to 09/01/2035		5,870,930		5,598,293
4.625% due 10/15/2014		780,000		756,516
4.694% due 09/01/2035		569,539		556,273
4.793% due 11/01/2035		356,273		353,798
4.836% due 06/01/2035		217,848		216,100
5.00% due 01/01/2009 to 10/01/2035		2,509,090		2,444,792
5.00% TBA **		585,000		560,320
5.3067% due 02/17/2009 (a)(b)		260,000		252,850
5.319% due 12/01/2035		231,601		229,187
5.375% due 07/15/2016 to 12/01/2035		732,646		739,253
5.455% due 01/01/2019		1,712		1,708
5.50% due 07/01/2013 to 01/01/2036		14,067,567		13,891,844
5.544% due 12/01/2035		420,395		418,829
5.685% due 12/01/2035		139,628		138,788
5.715% due 01/01/2036		957,562		954,303
5.75% due 02/15/2008 (a)		580,000		584,873
6.00% due 05/15/2011 to 01/01/2036		10,101,866		10,211,487
6.00% TBA **		818,000		825,028
6.50% due 06/01/2013 to 09/01/2036		3,697,395		3,757,381
7.00% due 12/01/2029 to 02/01/2030		3,336		3,438
7.00% TBA **		515,000		528,679
7.125% due 06/15/2010		1,400,000		1,500,103
7.125% due 01/15/2030 (a)		440,000		548,920

				49,067,294
Government National Mortgage
Association - 10.94%
4.00% due 09/15/2018		808,631		762,866
4.50% due 09/15/2018 to 01/20/2035		2,022,706		1,911,565
5.00% due 02/15/2018 to 05/15/2036		19,442,135		18,844,573
5.50% due 02/15/2018 to 04/20/2036		18,037,086		17,864,829
5.50% TBA **		3,777,770		3,738,114
6.00% due 12/20/2008 to 02/15/2036		14,184,245		14,329,772
6.00% TBA **		7,123,903		7,187,547
6.50% due 07/15/2009 to 07/20/2035		11,921,265		12,183,722
6.50% TBA **		804,413		820,970
7.00% due 09/15/2012 to 08/20/2036		4,412,620		4,543,891
7.50% due 09/15/2012 to 06/15/2032		506,476		527,274
8.00% due 08/15/2007 to 06/20/2029		412,303		436,091

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Government National Mortgage
Association (continued)
8.50% due 07/15/2008 to 02/15/2027	$	104,601	$	111,699
9.00% due 03/15/2009 to 05/15/2024		59,936		63,964
9.25% due 10/15/2016 to 12/15/2019		6,180		6,670
9.50% due 06/15/2009 to 12/15/2024		20,145		21,709
9.75% due 07/15/2017 to 02/15/2021		4,606		5,054
10.00% due 02/15/2016 to 03/15/2026		80,706		89,088
10.25% due 05/15/2020 to 11/15/2020		4,834		5,348
10.50% due 09/15/2015 to 07/15/2019		10,934		12,139
11.00% due 12/15/2009 to 07/20/2020		35,943		39,484
11.50% due 03/15/2010 to 11/15/2019		20,108		22,264
11.75% due 08/15/2013		1,649		1,833
12.00% due 10/15/2010 to 06/15/2015		18,485		20,684
12.25% due 03/15/2014 to 07/20/2015		1,594		1,755
12.50% due 04/15/2010 to 07/15/2015		7,242		7,948
12.75% due 12/20/2013 to 12/20/2014		1,532		1,691
13.00% due 01/15/2011 to 09/20/2015		6,154		6,853
13.50% due 05/15/2010 to 01/15/2015		4,282		4,781

				83,574,178

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $152,609,459)			$	151,869,824


FOREIGN GOVERNMENT OBLIGATIONS - 12.61%
Argentina - 0.19%
Republic of Argentina
zero coupon, Step up to 2.5% on
03/31/2009 due 12/31/2038 (a)		225,000		97,875
zero coupon, Step up to 1.18% on
03/31/2009 due 12/31/2038 (b)	ARS	700,000		111,997
0.275% due 12/15/2035 (b)		1,499,445		41,631
4.50% due 12/15/2035 (a)(b)	$	425,000		40,375
5.59% due 08/03/2012 (b)		725,000		509,313
5.83% due 12/31/2033 (b)	ARS	600,000		244,843
7.00% due 03/28/2011	$	75,000		74,550
City of Buenos Aires
7.875% due 04/11/2011		300,000		300,750

				1,421,334
Austria - 0.11%
Republic of Austria
5.50% due 01/15/2010	EUR	568,000		770,055
6.25% due 07/15/2027		49,000		82,109

				852,164
Belgium - 0.48%
Kingdom of Belgium
4.25% due 09/28/2013		484,000		641,001
5.00% due 03/28/2035		610,000		902,123
6.25% due 03/28/2007		1,621,000		2,104,976

				3,648,100
Brazil - 0.80%
Federative Republic of Brazil
6.00% due 05/15/2009	BRL	200,000		133,568
6.00% due 05/15/2015		1,782,000		1,123,286

The accompanying notes are an integral part of the financial statements. 362

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Brazil (continued)
Federative Republic of Brazil (continued)
6.00% due 05/15/2011	BRL	813,000	$	570,649
7.875% due 03/07/2015 (a)	$	50,000		54,950
8.00% due 01/15/2018 (a)		1,795,000		1,970,910
8.75% due 02/04/2025		375,000		445,687
8.875% due 10/14/2019		150,000		177,525
10.00% due 01/01/2014	BRL	2,014,000		773,127
10.00% due 01/01/2012		907,000		364,059
11.00% due 08/17/2040	$	370,000		483,405

				6,097,166
Canada - 0.19%
Government of Canada
4.00% due 09/01/2010 (a)	CAD	335,000		302,818
5.75% due 06/01/2033		225,000		254,044
Province of Quebec
9.375% due 01/16/2023		246,000		339,823
Province of Ontario
5.00% due 03/08/2014		552,000		521,473

				1,418,158
Colombia - 0.08%
Republic of Colombia
7.375% due 01/27/2017	$	250,000		260,000
10.75% due 01/15/2013		165,000		201,630
11.75% due 02/25/2020 (a)		125,000		174,375

				636,005
Denmark - 0.09%
Kingdom of Denmark
5.00% due 11/15/2013	DKK	3,277,000		606,697
7.00% due 11/10/2024		364,000		86,140

				692,837
Ecuador - 0.03%
Republic of Ecuador
4.00% coupon, Step up to 10.00% on
08/15/2007 due 08/15/2030 (b)	$	200,000		199,400
Finland - 0.02%
Republic of Finland
5.00% due 07/04/2007	EUR	136,000		176,150
France - 1.35%
Government of France
4.00% due 10/25/2014		640,000		834,321
4.00% due 04/25/2009		1,400,000		1,810,915
4.75% due 10/25/2012		585,000		792,927
5.00% due 07/16/2014		50,000		65,848
5.00% due 10/25/2016		227,000		320,059
5.50% due 04/25/2029		637,000		990,489
5.50% due 04/25/2010		2,470,000		3,366,231
5.75% due 10/25/2032		1,005,000		1,635,342
6.50% due 10/25/2006		400,000		513,859

				10,329,991

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Germany - 2.04%
Federal Republic of Germany
2.25% due 12/15/2006	EUR	3,000,000	$	3,826,532
3.25% due 07/04/2015		1,522,000		1,878,096
4.00% due 01/04/2037		850,000		1,083,399
4.00% due 02/16/2007		600,000		769,584
4.50% due 01/04/2013		121,000		162,017
4.75% due 07/04/2028		302,000		426,852
4.75% due 07/04/2034		625,000		894,693
5.50% due 01/04/2031		595,000		932,445
6.00% due 07/04/2007		1,308,000		1,706,977
6.00% due 01/04/2007		3,000,000		3,869,926

				15,550,521
Greece - 0.01%
Republic of Greece
4.60% due 05/20/2013		70,000		93,364
Indonesia - 0.09%
Republic of Indonesia
6.875% due 03/09/2017 (a)	$	700,000		703,884
Iraq - 0.11%
Republic of Iraq, Series REGS
5.80% due 01/15/2028 (a)		1,250,000		803,125
Ireland - 0.05%
Republic of Ireland
4.00% due 04/18/2010	EUR	96,000		124,513
5.00% due 04/18/2013		185,000		255,216

				379,729
Italy - 0.34%
Republic of Italy
4.25% due 08/01/2014		187,000		245,433
5.00% due 10/15/2007		332,000		431,458
6.00% due 11/01/2007		1,025,000		1,347,269
6.00% due 05/01/2031		271,000		432,688
7.25% due 11/01/2026		75,000		133,995

				2,590,843
Jamaica - 0.08%
Government of Jamaica
9.00% due 06/02/2015	$	215,000		223,600
10.625% due 06/20/2017 (a)		350,000		403,900

				627,500
Japan - 1.49%
Government of Japan
1.00% due 12/20/2012	JPY	179,450,000		1,502,404
1.00% due 06/10/2016		216,900,000		1,851,861
1.10% due 09/20/2012		67,450,000		569,482
1.30% due 12/20/2013		138,400,000		1,170,211
1.40% due 03/21/2011		244,300,000		2,114,630
1.50% due 03/20/2015		131,400,000		1,114,685
1.90% due 03/20/2025		183,000,000		1,511,174
1.90% due 12/20/2010		24,600,000		217,387
1.90% due 06/20/2016		32,800,000		286,162
2.00% due 06/20/2022		55,200,000		471,089

The accompanying notes are an integral part of the financial statements. 363

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Japan (continued)
Government of Japan (continued)
2.00% due 12/20/2033	JPY	53,200,000	$	417,364
2.20% due 06/22/2020		18,000,000		159,163

				11,385,612
Lebanon - 0.01%
Government of Lebanon
8.25% due 04/12/2021 (a)	$	100,000		96,500
Malaysia - 0.08%
Malaysia Government Bond
3.756% due 04/28/2011	MYR	781,000		209,206
6.812% due 11/29/2006		196,000		53,722
6.90% due 03/15/2007		1,182,000		326,786

				589,714
Mexico - 0.98%
Government of Mexico
4.625% due 10/08/2008	$	365,000		359,525
5.625% due 01/15/2017 (a)		200,000		197,200
6.625% due 03/03/2015 (a)		120,000		127,320
6.75% due 09/27/2034		100,000		106,100
7.50% due 04/08/2033		65,000		75,237
8.00% due 12/24/2008	MXN	11,150,000		1,030,465
8.00% due 12/28/2006		1,750,000		160,786
8.00% due 12/17/2015		3,680,000		330,794
8.00% due 12/19/2013		8,500,000		773,407
8.125% due 12/30/2019	$	265,000		319,325
9.00% due 12/22/2011	MXN	27,065,000		2,586,853
9.00% due 12/20/2012		3,350,000		320,436
9.50% due 12/18/2014		6,070,000		597,240
10.00% due 12/05/2024		5,090,000		533,320

				7,518,008
Netherlands - 0.51%
Kingdom of Netherlands
5.00% due 07/15/2011	EUR	188,000		255,321
5.50% due 01/15/2028		137,000		212,046
5.75% due 02/15/2007		2,650,000		3,424,120

				3,891,487
Panama - 0.02%
Republic of Panama
6.70% due 01/26/2036	$	163,000		159,740
Peru - 0.06%
Republic of Peru
8.375% due 05/03/2016		400,000		455,000
Philippines - 0.08%
Republic of Philippines
9.50% due 02/02/2030		200,000		244,000
9.875% due 01/15/2019		100,000		121,375
10.625% due 03/16/2025		175,000		229,469

				594,844
Poland - 0.73%
Republic of Poland
5.00% due 10/24/2013	PLN	5,100,000		1,602,460

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Poland (continued)
Republic of Poland, Series 0509 (continued)
6.00% due 05/24/2009	PLN	3,890,000	$	1,288,488
6.00% due 11/24/2010		7,995,000		2,653,080

				5,544,028
Portugal - 0.02%
Republic of Portugal
5.15% due 06/15/2011	EUR	118,000		160,346
Russia - 0.23%
Russian Federation, Series REGS
5.00% due 03/31/2030	$	1,600,000		1,780,640
Serbia - 0.11%
Republic of Serbia
zero coupon, Step up to 6.75% on
11/01/2009 due 11/01/2024		900,000		801,720
South Africa - 0.19%
Republic of South Africa
6.50% due 06/02/2014		485,000		506,219
8.50% due 06/23/2017		250,000		299,687
Republic of South Africa
13.00% due 08/31/2010	ZAR	3,451,000		547,425
13.50% due 09/15/2015		500,000		89,871

				1,443,202
Spain - 0.51%
Kingdom of Spain
4.00% due 01/31/2010	EUR	46,000		59,661
5.50% due 03/08/2011	AUD	560,000		416,954
5.75% due 07/30/2032	EUR	127,000		205,827
6.00% due 01/31/2008		2,427,000		3,206,510

				3,888,952
Sweden - 0.18%
Kingdom of Sweden
5.00% due 01/28/2009	SEK	9,800,000		1,401,372
Turkey - 0.30%
Republic of Turkey
6.875% due 03/17/2036 (a)	$	850,000		792,625
7.25% due 03/15/2015		50,000		50,812
7.375% due 02/05/2025		40,000		39,900
11.50% due 01/23/2012 (a)		100,000		121,125
14.00% due 01/19/2011	TRY	1,465,000		900,307
15.00% due 02/10/2010		320,000		202,117
20.00% due 10/17/2007		300,000		220,417

				2,327,303
Ukraine - 0.01%
Republic of Ukraine
7.65% due 06/11/2013	$	100,000		106,670
United Kingdom - 0.95%
Government of United Kingdom
4.25% due 03/07/2011	GBP	2,525,000		4,714,363
4.25% due 06/07/2032		1,305,000		2,512,475

				7,226,838

The accompanying notes are an integral part of the financial statements. 364

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Uruguay - 0.03%
Republic of Uruguay
7.625% due 03/21/2036	$	100,000	$	99,500
8.00% due 11/18/2022		150,000		157,125

				256,625
Vietnam - 0.06%
Socialist Republic of Vietnam
6.875% due 01/15/2016 (a)		425,000		440,284

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $94,918,947)		$		96,289,156


CORPORATE BONDS - 28.09%
Advertising - 0.42%
Advanstar Communications, Inc.
10.75% due 08/15/2010		425,000		459,000
Advanstar Communications, Inc., Series B
15.00% due 10/15/2011		200,000		208,500
Lamar Advertising Company
2.875% due 12/31/2010 (a)		425,000		495,350
Lamar Media Corp.
6.625% due 08/15/2015		325,000		304,688
R.H. Donnelley Corp.
10.875% due 12/15/2012		350,000		383,250
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016		1,350,000		1,329,750

				3,180,538
Aerospace - 0.36%
Aviall, Inc.
7.625% due 07/01/2011 (a)		225,000		236,531
BE Aerospace, Inc., Series B
8.875% due 05/01/2011		250,000		260,625
Boeing Company
8.75% due 08/15/2021		55,000		72,048
GenCorp, Inc.
9.50% due 08/15/2013		550,000		572,000
Moog, Inc.
6.25% due 01/15/2015		275,000		259,188
Northrop Grumman Corp.
7.125% due 02/15/2011		355,000		379,046
7.75% due 03/01/2016		35,000		40,563
Raytheon Company
6.15% due 11/01/2008		170,000		172,891
Rolls-Royce Group PLC, EMTN
4.50% due 03/16/2011	EUR	26,000		33,866
Sequa Corp.
9.00% due 08/01/2009	$	25,000		26,375
TransDigm, Inc.
7.75% due 07/15/2014		475,000		471,438
United Technologies Corp.
5.40% due 05/01/2035		110,000		104,467
Vought Aircraft Industries, Inc.
8.00% due 07/15/2011		125,000		112,500

				2,741,538

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Agriculture - 0.17%
Bunge, Ltd.
4.375% due 12/15/2008	$	475,000	$	463,205
Case New Holland, Inc.
9.25% due 08/01/2011		325,000		344,500
Phosphate Resource Partners LP
7.00% due 02/15/2008		100,000		99,750
Terra Capital, Inc.
11.50% due 06/01/2010		375,000		407,813

				1,315,268

Air Travel - 0.01%
Air Jamaica, Ltd., Series REGS
9.375% due 07/08/2015		75,000		78,000
Aluminum - 0.05%
Alcoa, Inc.
4.25% due 08/15/2007		55,000		54,208
Century Aluminum Company
7.50% due 08/15/2014		300,000		298,500

				352,708

Amusement & Theme Parks - 0.05%
Universal City Development Partners
11.75% due 04/01/2010		375,000		405,938
Apparel & Textiles - 0.20%
Broder Brothers, Series B
11.25% due 10/15/2010		225,000		212,062
Collins & Aikman Floorcoverings, Inc.
9.75% due 02/15/2010		300,000		294,750
INVISTA
9.25% due 05/01/2012		675,000		708,750
Rafaella Apparel Group, Inc.
11.25% due 06/15/2011		300,000		289,500

				1,505,062

Auto Parts - 0.11%
Accuride Corp.
8.50% due 02/01/2015		250,000		233,125
Commercial Vehicle Group, Inc.
8.00% due 07/01/2013		50,000		47,625
Lear Corp., Series B
8.11% due 05/15/2009 (a)		150,000		144,750
Tenneco Automotive, Inc.
8.625% due 11/15/2014 (a)		400,000		399,000

				824,500

Auto Services - 0.21%
Adesa, Inc.
7.625% due 06/15/2012		250,000		246,250
Avis Budget Car Rental LLC
7.625% due 05/15/2014		175,000		166,250
7.905% due 05/15/2014 (b)		50,000		47,500
Erac USA Finance Company
7.95% due 12/15/2009		115,000		123,198
Hertz Corp., Class A
8.875% due 01/01/2014		625,000		648,437
10.50% due 01/01/2016 (a)		350,000		377,125

				1,608,760

The accompanying notes are an integral part of the financial statements. 365

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Automobiles - 0.25%
AutoNation, Inc.
7.00% due 04/15/2014	$	550,000	$	542,438
7.5069% due 04/15/2013 (b)		100,000		100,500
DaimlerChrysler N.A. Holding Corp.
6.50% due 11/15/2013 (a)		460,000		473,708
8.50% due 01/18/2031 (a)		60,000		72,051
DaimlerChrysler N.A. Holding Corp., Series MTN
5.9175% due 08/03/2009 (b)		470,000		470,788
ERAC USA Finance Company
5.60% due 05/01/2015		240,000		234,367

				1,893,852
Banking - 1.36%
Australia & New Zealand Banking Group,
Ltd., EMTN
4.45% due 02/05/2015 (b)	EUR	39,000		50,765
BAC Capital Trust VI
5.625% due 03/08/2035	$	395,000		361,590
Banca Intesa SpA, EMTN
5.85% due 05/08/2014 (b)	EUR	67,000		89,551
Banca Monte dei Paschi di Siena SpA, EMTN
4.50% due 09/24/2015 (b)		75,000		97,337
Bank Nederlandse Gemeenten, EMTN
4.00% due 07/15/2014		105,000		135,339
Bank of America Corp.
5.25% due 02/01/2007	$	150,000		149,853
5.75% due 08/15/2016		210,000		213,045
Bank of Ireland
6.45% due 02/10/2010	EUR	49,000		67,715
Bank One Corp.
5.25% due 01/30/2013 (a)	$	200,000		197,763
Banknorth Capital Trust I, Series B
10.52% due 05/01/2027		25,000		26,920
Banque du Liban, Series ECD
10.00% due 04/25/2015		300,000		326,250
Barclays Bank PLC, EMTN
5.75% due 03/08/2011	EUR	36,000		49,467
BB&T Capital Trust II
6.75% due 06/07/2036	$	405,000		428,853
BNP Paribas, EMTN
5.25% due 12/17/2012	EUR	36,000		49,281
Colonial Bank, N.A.
9.375% due 06/01/2011	$	185,000		209,142
Credit Agricole SA, Series TSDI
zero coupon, Step up to 6% on
06/20/2018 due 06/20/2049 (b)	GBP	100,000		180,949
Credit Suisse Group Finance Guernsey, Ltd.
6.375% due 06/07/2013	EUR	51,000		73,538
Deutsche Bank AG
5.125% due 01/31/2013		72,000		97,206
Greenpoint Capital Trust I
9.10% due 06/01/2027	$	25,000		26,627
HBOS PLC
3.125% due 01/12/2007		170,000		168,564
6.00% due 11/01/2033		420,000		425,726
HBOS PLC, EMTN
4.375% due 10/30/2019 (b)	EUR	54,000		69,649

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Banking (continued)
HSBC Bank PLC, EMTN
4.25% due 03/18/2016 (b)	EUR	61,000	$	78,754
HSBC Holdings PLC
6.50% due 05/02/2036	$	175,000		184,277
9.875% due 04/08/2018	GBP	60,000		142,593
Huntington National Bank, Series BKNT
4.375% due 01/15/2010	$	220,000		213,408
Independence Community Bank Corp.
3.75% due 04/01/2014 (b)		15,000		14,371
ING Bank NV, EMTN
5.50% due 01/04/2012	EUR	36,000		49,343
Islandsbanki HF
5.6669% due 10/15/2008 (b)	$	200,000		198,677
Keybank NA
5.80% due 07/01/2014		40,000		40,556
Keybank NA, Series BKNT
4.412% due 03/18/2008		55,000		54,271
KeyCorp, MTN, Series G
4.70% due 05/21/2009		45,000		44,306
KfW Bankengruppe, EMTN
4.75% due 12/07/2010	GBP	524,000		986,029
Kreditanstalt fuer Wiederaufbau
4.70% due 06/02/2037	CAD	275,000		247,861
Kreditanstalt fuer Wiederaufbau, Series EXCH
5.50% due 12/07/2015	GBP	390,000		777,169
Landwirtschaftliche Rentenbank, Series 7
3.75% due 06/15/2009	$	110,000		106,513
Marshall & Ilsley Bank, Series BKNT
3.80% due 02/08/2008		110,000		107,743
4.125% due 09/04/2007		50,000		49,401
Mizuho Capital Investment EUR 1, Ltd.
5.02% due 06/29/2049 (b)	EUR	50,000		63,973
Nordea Bank Finland PLC, EMTN
5.75% due 03/26/2014 (b)		52,000		69,591
Northern Rock PLC, EMTN
5.75% due 02/28/2017	GBP	99,000		191,666
Northern Trust Company, Series BKNT
4.60% due 02/01/2013	$	120,000		114,858
Northern Trust Corp.
5.30% due 08/29/2011		144,000		144,375
Rabobank Nederland, EMTN
3.125% due 07/19/2010	EUR	75,000		94,073
Regions Bank, Series BKNT
2.90% due 12/15/2006	$	120,000		119,174
Royal Bank of Scotland PLC, EMTN
zero coupon, Step up to 6.935% on
09/08/2014 due 06/29/2049 (b)	GBP	104,000		204,495
Sanpaolo IMI SpA, EMTN
3.75% due 06/09/2015 (b)	EUR	64,000		80,841
Standard Chartered Bank, EMTN
3.625% due 02/03/2017 (b)		64,000		79,708
Sumitomo Mitsui Banking Corp, Series REGS
4.375% due 07/29/2049 (b)		50,000		61,602
Sumitomo Mitsui Banking Corp.
5.625% due 07/29/2049 (b)	$	200,000		193,279

The accompanying notes are an integral part of the financial statements. 366

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Banking (continued)
Suncorp-Metway, Ltd.
4.625% due 06/15/2013	$	30,000	$	28,608
Svensk Exportkredit AB
2.875% due 01/26/2007		130,000		128,883
Svenska Handelsbanken, EMTN
6.125% due 03/29/2049 (b)	GBP	49,000		94,636
US Bancorp, MTN, Series P
4.50% due 07/29/2010 (a)	$	190,000		185,568
US Bank NA
6.50% due 02/01/2008		260,000		263,965
Wachovia Bank NA, Series BKNT
4.875% due 02/01/2015		360,000		343,605
Wachovia Corp.
5.4156% due 07/20/2007 (b)		65,000		65,069
5.50% due 08/01/2035 (a)		110,000		102,487
6.40% due 04/01/2008		90,000		91,648
Webster Capital Trust II, Series B
10.00% due 04/01/2027		35,000		37,309
Webster Financial Corp.
5.125% due 04/15/2014		200,000		191,083
Wells Fargo Company
4.20% due 01/15/2010		205,000		198,639
4.875% due 01/12/2011		225,000		221,858
Westpac Banking Corp.
2.875% due 06/25/2008	EUR	21,000		26,492
World Savings Bank FSB, Series BKNT
4.125% due 12/15/2009 (a)	$	195,000		188,649

				10,376,536
Biotechnology - 0.06%
Amgen, Inc.
4.00% due 11/18/2009		130,000		125,441
Genentech, Inc.
4.40% due 07/15/2010		125,000		121,526
4.75% due 07/15/2015		205,000		194,595

				441,562
Broadcasting - 0.48%
Allbritton Communications Company
7.75% due 12/15/2012		800,000		791,000
Canadian Satellite Radio Holdings, Inc., ADR
12.75% due 02/15/2014		250,000		246,875
CanWest Media, Inc.
8.00% due 09/15/2012		400,000		387,000
Fisher Communications, Inc.
8.625% due 09/15/2014		225,000		231,187
Gray Television, Inc.
9.25% due 12/15/2011		375,000		390,000
Liberty Media Corp.
4.00% due 11/15/2029		600,000		395,250
6.8294% due 09/17/2006 (b)		35,000		35,012
LIN Television Corp.
2.50% due 05/15/2033		72,000		65,700
News America, Inc.
6.20% due 12/15/2034		190,000		177,542
7.375% due 10/17/2008		125,000		129,899

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Broadcasting (continued)
Sirius Satellite Radio, Inc.
9.625% due 08/01/2013 (a)	$	425,000	$	403,750
Viacom, Inc.
5.75% due 04/30/2011		335,000		332,243
XM Satellite Radio Holdings, Inc.
9.75% due 05/01/2014		50,000		47,000

				3,632,458
Building Materials & Construction - 0.35%
Brand Services, Inc.
12.00% due 10/15/2012		350,000		393,988
Building Materials Corporation of America
7.75% due 08/01/2014 (a)		625,000		565,625
Columbus McKinnon Corp.
8.875% due 11/01/2013 (a)		300,000		306,000
CRH America, Inc.
6.40% due 10/15/2033		65,000		64,008
Interline Brands, Inc.
8.125% due 06/15/2014		475,000		478,563
Lafarge SA
6.15% due 07/15/2011 (a)		140,000		142,492
Texas Industries, Inc.
7.25% due 07/15/2013		500,000		500,625
U.S. Concrete, Inc.
8.375% due 04/01/2014		250,000		239,375

				2,690,676
Buildings - 0.04%
D.R. Horton, Inc.
4.875% due 01/15/2010		70,000		67,652
5.625% due 09/15/2014		285,000		267,220

				334,872
Business Services - 0.68%
Affinity Group, Inc.
9.00% due 02/15/2012		350,000		350,000
10.875% due 02/15/2012		111,170		105,612
Dun & Bradstreet Corp.
5.50% due 03/15/2011		120,000		120,331
FTI Consulting, Inc.
7.625% due 06/15/2013		375,000		377,812
GTECH Holdings Corp.
4.50% due 12/01/2009		250,000		249,945
4.75% due 10/15/2010		30,000		29,987
Insurance Auto Auctions, Inc.
11.00% due 04/01/2013		250,000		248,750
Invensys PLC
9.875% due 03/15/2011 (a)		344,000		371,520
iPayment, Inc.
9.75% due 05/15/2014		425,000		430,313
Nebraska Book Company, Inc.
8.625% due 03/15/2012		425,000		387,812
Sungard Data Systems, Inc.
9.125% due 08/15/2013		1,073,000		1,107,873
Universal Compression, Inc.
7.25% due 05/15/2010		200,000		202,000
Xerox Corp.
6.40% due 03/15/2016		326,000		322,771

The accompanying notes are an integral part of the financial statements. 367

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Business Services (continued)
Xerox Corp. (continued)
6.75% due 02/01/2017	$	780,000	$	781,950
7.625% due 06/15/2013		125,000		129,219

				5,215,895
Cable and Television - 1.08%
Charter Communications Operating LLC
8.00% due 04/30/2012		1,200,000		1,203,000
Comcast Cable Communications, Inc.
8.375% due 05/01/2007		120,000		122,239
Comcast Corp.
4.95% due 06/15/2016		307,000		283,157
Cox Communications, Inc.
7.125% due 10/01/2012 (a)		266,000		281,411
7.75% due 11/01/2010		115,000		123,728
Cox Enterprises, Inc.
4.375% due 05/01/2008		135,000		132,187
CSC Holdings, Inc.
7.25% due 07/15/2008		775,000		783,719
DirecTV Holdings LLC
6.375% due 06/15/2015		1,000,000		935,000
8.375% due 03/15/2013		150,000		157,500
E.W. Scripps Company
4.30% due 06/30/2010		50,000		47,917
EchoStar Communications Corp.
5.75% due 05/15/2008 (a)		150,000		150,000
Echostar DBS Corp.
5.75% due 10/01/2008		15,000		14,850
6.625% due 10/01/2014		425,000		408,531
Kabel Deutschland GMBH
10.625% due 07/01/2014		300,000		321,000
News America, Inc.
6.40% due 12/15/2035		220,000		210,816
Rainbow National Services LLC
8.75% due 09/01/2012		100,000		105,500
Rogers Cable, Inc.
5.50% due 03/15/2014		160,000		148,200
6.75% due 03/15/2015		400,000		397,000
Shaw Communications, Inc.
7.40% due 10/17/2007	CAD	45,000		41,786
8.25% due 04/11/2010	$	125,000		131,406
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		625,000		632,812
8.75% due 12/15/2011		125,000		130,469
Superior Essex Communications &
Essex Group, Inc.
9.00% due 04/15/2012		225,000		228,375
Time Warner Entertainment Company LP
7.25% due 09/01/2008		355,000		366,541
8.375% due 03/15/2023		406,000		456,812
Videotron Ltee
6.375% due 12/15/2015		100,000		93,625
6.875% due 01/15/2014		315,000		309,094

				8,216,675

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cellular Communications - 1.18%
Alamosa Delaware, Inc.
11.00% due 07/31/2010	$	400,000	$	437,000
America Movil SA de CV
6.375% due 03/01/2035		175,000		167,210
American Cellular Corp.
10.00% due 08/01/2011		200,000		208,000
American Tower Corp.
3.00% due 08/15/2012 (a)		275,000		508,063
7.125% due 10/15/2012		250,000		253,125
7.25% due 12/01/2011		50,000		51,375
7.50% due 05/01/2012 (a)		50,000		50,875
AT&T Broadband Corp.
8.375% due 03/15/2013		409,000		463,608
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		120,000		130,930
Centennial Communications Corp.
10.00% due 01/01/2013 (a)		150,000		149,625
10.125% due 06/15/2013		525,000		553,875
Cingular Wireless Services, Inc.
8.125% due 05/01/2012		10,000		11,196
Digicel, Ltd.
9.25% due 09/01/2012		500,000		521,250
Dobson Cellular Systems, Inc.
8.875% due 10/01/2013 (a)		200,000		197,500
9.875% due 11/01/2012 (a)		225,000		240,187
Horizon PCS, Inc.
11.375% due 07/15/2012		125,000		140,938
mmO2 PLC, EMTN
6.375% due 01/25/2007	EUR	33,000		42,656
Motorola, Inc.
7.50% due 05/15/2025	$	65,000		74,204
Nextel Communications, Inc.
6.875% due 10/31/2013		1,290,000		1,306,191
7.375% due 08/01/2015		370,000		380,707
Nextel Partners, Inc.
8.125% due 07/01/2011		200,000		210,000
Rogers Wireless, Inc.
6.375% due 03/01/2014		575,000		563,500
7.50% due 03/15/2015		50,000		52,250
8.00% due 12/15/2012		975,000		1,018,875
9.625% due 05/01/2011		200,000		223,500
Rural Cellular Corp.
9.875% due 02/01/2010		150,000		154,875
10.898% due 11/01/2012		100,000		103,000
UbiquiTel Operating Company
9.875% due 03/01/2011		300,000		326,250
US Unwired, Inc., Series B
10.00% due 06/15/2012		250,000		275,000
Verizon Wireless Capital LLC
5.375% due 12/15/2006		165,000		164,937

				8,980,702
Chemicals - 0.35%
Arco Chemical Company
10.25% due 11/01/2010		100,000		109,750

The accompanying notes are an integral part of the financial statements. 368

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Chemicals (continued)
Crystal US Holdings 3
LLC/Crystal US Sub 3 Corp., Series A
zero coupon, Step up to 10% on
10/01/2009 due 10/01/2014	$	250,000	$	202,500
Crystal US Holdings 3
LLC/Crystal US Sub 3 Corp., Series B
zero coupon, Step up to 10.5% on
10/01/2009 due 10/01/2014		375,000		299,063
Domtar, Inc.
7.875% due 10/15/2011		150,000		148,875
Dow Chemical Company
6.125% due 02/01/2011 (a)		120,000		123,314
Dow Chemical Company, EMTN
4.375% due 06/25/2010	EUR	38,000		49,244
Equistar Chemicals LP
8.75% due 02/15/2009	$	25,000		25,937
Hercules, Inc.
6.75% due 10/15/2029		200,000		188,500
Huntsman LLC
11.625% due 10/15/2010		150,000		166,500
IMC Global, Inc.
10.875% due 08/01/2013		25,000		28,000
IMC Global, Inc., Series B
10.875% due 06/01/2008		100,000		106,750
11.25% due 06/01/2011		25,000		26,406
Lubrizol Corp.
4.625% due 10/01/2009		60,000		58,684
5.875% due 12/01/2008		195,000		196,461
Lyondell Chemical Company
10.50% due 06/01/2013		325,000		357,500
11.125% due 07/15/2012		100,000		109,000
Praxair, Inc.
4.75% due 07/15/2007		85,000		84,528
Rockwood Specialties Group, Inc.
7.50% due 11/15/2014		150,000		147,375
10.625% due 05/15/2011		225,000		241,313

				2,669,700

Coal - 0.10%
Alpha Natural Resources LLC
10.00% due 06/01/2012		225,000		240,750
Foundation PA Coal Company
7.25% due 08/01/2014		475,000		461,937
Massey Energy Company
6.625% due 11/15/2010		50,000		49,250

				751,937

Commercial Services - 0.09%
Brickman Group, Ltd., Series B
11.75% due 12/15/2009		450,000		481,500
Mac-Gray Corp.
7.625% due 08/15/2015		225,000		228,375

				709,875

Computers & Business Equipment - 0.19%
Broadview Networks Holdings, Inc.
11.375% due 09/01/2012		175,000		177,844

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Computers & Business Equipment
(continued)
Cisco Systems, Inc.
5.25% due 02/22/2011	$	290,000	$	289,993
Hewlett-Packard Company
5.50% due 07/01/2007		200,000		200,078
International Business Machines Corp., MTN
2.375% due 11/01/2006		120,000		119,456
3.80% due 02/01/2008		180,000		176,281
Unisys Corp.
6.875% due 03/15/2010 (a)		225,000		210,375
7.875% due 04/01/2008		175,000		174,781
8.00% due 10/15/2012		75,000		69,469

				1,418,277
Construction & Mining Equipment - 0.04%
JLG Industries, Inc.
8.375% due 06/15/2012 (a)		200,000		208,000
Terex Corp.
7.375% due 01/15/2014		100,000		100,000

				308,000
Containers & Glass - 0.47%
Ball Corp.
6.875% due 12/15/2012		575,000		575,000
BWAY Corp.
10.00% due 10/15/2010		400,000		419,000
Graham Packaging Company
8.50% due 10/15/2012		75,000		72,563
Graphic Packaging International Corp.
8.50% due 08/15/2011		275,000		279,125
9.50% due 08/15/2013 (a)		75,000		75,375
Greif, Inc.
8.875% due 08/01/2012		225,000		236,250
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		525,000		531,562
8.75% due 11/15/2012		355,000		377,187
8.875% due 02/15/2009		350,000		359,625
Owens-Illinois, Inc.
7.35% due 05/15/2008 (a)		75,000		75,000
Sealed Air Corp.
5.375% due 04/15/2008		230,000		229,382
Silgan Holdings, Inc.
6.75% due 11/15/2013		175,000		171,063
Stone Container Corp.
9.75% due 02/01/2011		64,000		65,760
Stone Container Finance
7.375% due 07/15/2014		125,000		112,500

				3,579,392
Cosmetics & Toiletries - 0.04%
Chattem, Inc.
7.00% due 03/01/2014		350,000		334,250
Crude Petroleum & Natural Gas - 1.14%
Amerada Hess Corp.
7.375% due 10/01/2009		75,000		79,202
7.875% due 10/01/2029		298,000		347,398

The accompanying notes are an integral part of the financial statements. 369

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas
(continued)
AmeriGas Partners LP
7.25% due 05/20/2015	$	1,175,000	$	1,154,437
Atlantic Richfield Corp.
9.125% due 03/01/2011 (a)		105,000		121,301
Chaparral Energy, Inc.
8.50% due 12/01/2015		325,000		327,438
Chesapeake Energy Corp.
6.375% due 06/15/2015		450,000		427,500
6.50% due 08/15/2017		1,055,000		978,512
6.625% due 01/15/2016		375,000		360,000
Clayton Williams Energy, Inc.
7.75% due 08/01/2013		275,000		257,125
Compton Petroleum Finance Corp.
7.625% due 12/01/2013		575,000		560,625
Denbury Resources, Inc.
7.50% due 04/01/2013		300,000		303,000
7.50% due 12/15/2015		375,000		378,750
EnCana Corp.
4.60% due 08/15/2009		190,000		185,971
6.50% due 08/15/2034		45,000		46,670
EnCana Holdings Finance Corp.
5.80% due 05/01/2014		400,000		402,887
Encore Acquisition Company
7.25% due 12/01/2017		350,000		342,125
Hilcorp Energy I LP
7.75% due 11/01/2015		400,000		393,000
10.50% due 09/01/2010		375,000		406,875
Massey Energy Company
6.875% due 12/15/2013		200,000		185,500
PetroHawk Energy Corp.
9.125% due 07/15/2013		525,000		534,188
Plains Exploration & Production Company
8.75% due 07/01/2012		275,000		288,750
Range Resources Corp.
7.50% due 05/15/2016		425,000		428,187
Sempra Energy
5.8625% due 05/21/2008 (b)		180,000		180,214

				8,689,655
Domestic Oil - 0.43%
ConocoPhillips
5.90% due 10/15/2032 (a)		180,000		181,666
Devon Financing Corp., ULC
6.875% due 09/30/2011		545,000		577,966
7.875% due 09/30/2031		185,000		221,202
Diamond Offshore Drilling, Inc.
4.875% due 07/01/2015		240,000		225,137
5.15% due 09/01/2014		395,000		380,478
Forest Oil Corp.
8.00% due 12/15/2011		375,000		387,188
Magnum Hunter Resources, Inc.
9.60% due 03/15/2012		200,000		212,000
Range Resources Corp.
6.375% due 03/15/2015		700,000		668,500

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Domestic Oil (continued)
Swift Energy Company
7.625% due 07/15/2011	$	50,000	$	50,500
9.375% due 05/01/2012 (a)		50,000		52,750
Valero Energy Corp.
3.50% due 04/01/2009		320,000		305,572
4.75% due 04/01/2014 (a)		65,000		60,974

				3,323,933
Drugs & Health Care - 0.06%
Biovail Corp.
7.875% due 04/01/2010		200,000		199,500
CVS Corp.
3.875% due 11/01/2007		240,000		235,624

				435,124
Educational Services - 0.19%
AAC Group Holding Corp.
zero coupon, Step up to 10.25% on
10/01/2008 due 10/01/2012		200,000		160,500
Education Management Corp.
10.25% due 06/01/2016		1,300,000		1,287,000

				1,447,500
Electrical Equipment - 0.11%
Exelon Generation Company LLC
5.35% due 01/15/2014		170,000		165,943
General Cable Corp.
9.50% due 11/15/2010		275,000		294,250
Telex Communications Holdings, Inc.
11.50% due 10/15/2008		325,000		346,125

				806,318
Electrical Utilities - 1.45%
AES Corp.
7.75% due 03/01/2014		135,000		139,050
8.875% due 02/15/2011		275,000		294,250
9.00% due 05/15/2015		930,000		1,003,238
9.375% due 09/15/2010		300,000		324,000
Alabama Power Company
3.50% due 11/15/2007		150,000		146,746
5.59% due 08/25/2009 (b)		160,000		160,573
Allegheny Energy Supply Company LLC
7.80% due 03/15/2011		250,000		263,438
8.25% due 04/15/2012		50,000		54,000
Appalachian Power Company
5.83% due 06/29/2007 (b)		70,000		70,107
6.375% due 04/01/2036		170,000		170,373
Black Hills Corp.
6.50% due 05/15/2013		235,000		236,751
CE Electric UK Funding Company
6.995% due 12/30/2007		200,000		203,500
CenterPoint Energy Transition Bond Co., LLC,
Series A-2
4.97% due 08/01/2014		175,000		173,833
Centerpoint Energy, Inc., Series B
5.875% due 06/01/2008		110,000		110,394
7.25% due 09/01/2010		205,000		216,163

The accompanying notes are an integral part of the financial statements. 370

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Electrical Utilities (continued)
CMS Energy Corp.
8.50% due 04/15/2011	$	50,000	$	53,625
9.875% due 10/15/2007		475,000		494,594
Consumers Energy Co.
5.80% due 09/15/2035 (a)		100,000		93,903
Dominion Resources, Inc.
4.125% due 02/15/2008		65,000		63,838
Edison SpA, EMTN
5.125% due 12/10/2010	EUR	30,000		40,009
El Paso Electric Company
6.00% due 05/15/2035	$	245,000		234,399
Elia System Operator SA
4.75% due 05/13/2014	EUR	68,000		90,243
Enbw International Finance BV, EMTN
5.875% due 02/28/2012		36,000		50,076
Energy East Corp.
5.75% due 11/15/2006	$	125,000		125,095
Entergy Louisiana LLC
5.83% due 11/01/2010		35,000		34,795
FirstEnergy Corp.
6.45% due 11/15/2011		245,000		254,100
FirstEnergy Corp., Series A
5.50% due 11/15/2006		42,000		41,993
MidAmerican Energy Holdings Company
6.125% due 04/01/2036		220,000		217,235
Midwest Generation LLC
8.75% due 05/01/2034		950,000		1,011,750
Mirant Americas Generation LLC
8.30% due 05/01/2011 ^		400,000		400,000
Mission Energy Holding Co.
13.50% due 07/15/2008		400,000		447,500
National Grid PLC, EMTN
5.00% due 07/02/2018	EUR	22,000		28,646
National Power Corp.
9.6481% due 08/23/2011 (b)	$	200,000		219,814
Nevada Power Company
5.875% due 01/15/2015		45,000		44,482
Orion Power Holdings, Inc.
12.00% due 05/01/2010		350,000		397,250
Pacific Gas & Electric Company
4.80% due 03/01/2014		235,000		224,723
6.05% due 03/01/2034		50,000		49,419
Pepco Holdings, Inc.
5.50% due 08/15/2007		110,000		109,947
PPL Capital Funding, Inc.
4.33% due 03/01/2009		285,000		276,705
RWE Finance BV, EMTN
5.375% due 04/18/2008	EUR	33,000		43,292
6.375% due 06/03/2013	GBP	49,000		98,659
San Diego Gas & Electric Company
5.35% due 05/15/2035 (a)	$	60,000		56,020
Scottish Power UK PLC
8.375% due 02/20/2017	GBP	39,000		91,799
Sierra Pacific Resources
7.803% due 06/15/2012	$	125,000		130,306
8.625% due 03/15/2014		850,000		913,673

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Electrical Utilities (continued)
Southern California Edison Company
4.65% due 04/01/2015 (a)	$	275,000	$	258,273
Tri-State Generation & Transmission Association
6.04% due 01/31/2018		110,000		110,070
Vattenfall Treasury AB, EMTN
6.00% due 04/03/2009	EUR	35,000		47,133
Virginia Electric and Power Company
4.50% due 12/15/2010	$	35,000		33,676
6.00% due 01/15/2036		310,000		300,117
Westar Energy, Inc.
5.10% due 07/15/2020		185,000		169,777
Western Power Distribution Holdings, Ltd.
6.875% due 12/15/2007		160,000		161,416
Wisconsin Electric Power Company
3.50% due 12/01/2007 (a)		120,000		117,443

				11,102,211
Electronics - 0.10%
Celestica, Inc.
7.875% due 07/01/2011		250,000		249,375
L-3 Communications Corp., Series B
6.375% due 10/15/2015		550,000		529,375

				778,750
Energy - 0.86%
Copano Energy LLC
8.125% due 03/01/2016		250,000		253,125
Duke Capital LLC
6.25% due 02/15/2013 (a)		450,000		456,138
Duke Capital LLC, Series B
6.75% due 07/15/2018		90,000		94,069
Enterprise Products Operating LP
4.95% due 06/01/2010		175,000		170,882
Enterprise Products Operating LP, Series B
4.00% due 10/15/2007		80,000		78,662
5.60% due 10/15/2014		120,000		116,945
Ferrellgas Partners LP
8.75% due 06/15/2012		250,000		258,750
Florida Power & Light Company
6.20% due 06/01/2036		110,000		114,937
Mirant North America LLC
7.375% due 12/31/2013		1,725,000		1,707,750
Niagara Mohawk Power Corp., Series G
7.75% due 10/01/2008		50,000		52,190
NRG Energy, Inc.
7.25% due 02/01/2014		400,000		395,000
7.375% due 02/01/2016		1,830,000		1,802,550
Peabody Energy Corp.
6.875% due 03/15/2013		200,000		198,000
Progress Energy, Inc.
5.625% due 01/15/2016		400,000		393,806
Stone Energy Corp.
8.24% due 07/15/2010 (b)		400,000		396,000
TXU Energy Company LLC
6.125% due 03/15/2008 (a)		45,000		45,341

The accompanying notes are an integral part of the financial statements. 371

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Energy (continued)
Xcel Energy, Inc.
7.00% due 12/01/2010	$	30,000	$	31,673

				6,565,818
Financial Services - 3.39%
AAC Group Holding Corp.
12.75% due 10/01/2012 (a)		225,000		227,812
AIG SunAmerica Global Financing XII
5.30% due 05/30/2007		75,000		74,919
Altria Finance Cayman Islands, Ltd.
5.625% due 06/24/2008	EUR	61,000		80,211
American Commercial Lines, Inc.
9.50% due 02/15/2015	$	350,000		381,500
American Express Credit Corp.
5.30% due 12/02/2015		50,000		49,617
American Express Credit Corp., EMTN
3.625% due 10/13/2009	EUR	55,000		69,854
American General Finance Corp., Series I, MTN
5.40% due 12/01/2015 (a)	$	250,000		245,921
American Honda Finance Corp.
4.50% due 05/26/2009		365,000		358,353
Arch Western Finance LLC
6.75% due 07/01/2013		275,000		265,375
BCP Crystal Holdings Corp.
9.625% due 06/15/2014		550,000		596,062
Bear Stearns Companies, Inc.
4.00% due 01/31/2008		150,000		147,427
5.50% due 08/15/2011		275,000		276,234
BHP Billiton Finance USA, Ltd.
4.80% due 04/15/2013		340,000		328,030
Boeing Capital Corp., MTN, Series X
6.35% due 11/15/2007 (a)		160,000		161,727
Capital One Bank
6.50% due 06/13/2013		330,000		343,001
Capital One Financial Corp.
4.738% due 05/17/2007		160,000		159,072
6.15% due 09/01/2016		215,000		215,945
Caterpillar Financial Services Corp., MTN, Series F
4.50% due 09/01/2008		140,000		137,813
CIT Group, Inc.
5.50% due 11/30/2007		65,000		64,989
6.00% due 04/01/2036		165,000		159,334
CIT Group, Inc., GMTN
4.25% due 09/22/2011	EUR	50,000		64,354
CIT Group, Inc., MTN
5.555% due 08/15/2008 (a)(b)	$	115,000		115,287
Citigroup, Inc.
3.625% due 02/09/2009		130,000		125,426
3.875% due 05/21/2010	EUR	35,000		44,868
4.75% due 02/10/2019 (b)		100,000		132,243
5.00% due 09/15/2014	$	175,000		169,318
5.30% due 01/07/2016 (a)		285,000		281,160
Countrywide Financial Corp.
6.25% due 05/15/2016		455,000		459,422
Countrywide Home Loans, Inc., MTN
4.125% due 09/15/2009		150,000		144,813

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
Credit Suisse USA, Inc.
5.50% due 08/16/2011	$	170,000	$	170,708
Dollar Financial Group, Inc.
9.75% due 11/15/2011		148,000		159,100
Erac USA Finance Co.
6.75% due 05/15/2007		150,000		150,776
ERP Operating LP
3.85% due 08/15/2026		15,000		15,130
Ford Motor Credit Company
5.372% due 04/15/2012 (b)		1,350,000		1,427,166
5.80% due 01/12/2009		330,000		316,125
6.3744% due 03/21/2007 (b)		50,000		49,921
6.3663% due 11/16/2006 (b)		110,000		110,035
6.50% due 01/25/2007 (a)		60,000		60,093
7.0769% due 01/15/2010 (b)		100,000		94,456
7.375% due 10/28/2009		960,000		941,578
9.875% due 08/10/2011		775,000		809,722
Franklin Resources, Inc.
3.70% due 04/15/2008		60,000		58,443
Fund American Companies, Inc.
5.875% due 05/15/2013		205,000		201,259
GE Capital European Funding, Series EMTN
3.50% due 02/14/2013	EUR	110,000		137,596
GE Capital UK Funding, EMTN
5.625% due 12/12/2014	GBP	75,000		146,798
General Electric Capital Corp.
6.125% due 02/22/2011	$	220,000		227,518
General Electric Capital Corp., Series A, MTN
5.00% due 06/15/2007		130,000		129,679
6.00% due 06/15/2012		50,000		51,673
General Motors Acceptance Corp.
5.625% due 05/15/2009 (a)		290,000		280,505
6.00% due 10/16/2006	EUR	63,000		80,670
6.4569% due 07/16/2007 (b)	$	180,000		178,892
6.75% due 12/01/2014 (a)		425,000		407,442
6.875% due 08/28/2012		1,000,000		968,251
7.75% due 01/19/2010 (a)		625,000		635,283
GIE Suez Alliance, EMTN
5.125% due 06/24/2015	EUR	47,000		64,032
Global Cash Access LLC
8.75% due 03/15/2012	$	500,000		523,125
Goldman Sachs Capital, Inc.
6.345% due 02/15/2034 (a)		666,000		657,478
Goldman Sachs Group, Inc.
4.25% due 08/04/2010	EUR	48,000		62,125
5.6331% due 07/02/2007 (b)	$	65,000		65,094
6.60% due 01/15/2012		150,000		157,333
HSBC Finance Corp.
5.00% due 06/30/2015 (a)		430,000		412,802
5.50% due 01/19/2016		440,000		436,817
5.75% due 01/30/2007		95,000		95,130
HSBC USA, Inc.
4.625% due 04/01/2014		100,000		94,747
International Lease Finance Corp.
3.75% due 08/01/2007		160,000		157,450

The accompanying notes are an integral part of the financial statements. 372

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
International Lease Finance Corp., EMTN
4.125% due 10/09/2008	EUR	70,000	$	89,987
International Lease Finance Corp., Series MTN
5.45% due 03/24/2011	$	325,000		325,304
iPCS, Inc.
11.50% due 05/01/2012		150,000		168,750
Jefferies Group, Inc.
6.25% due 01/15/2036		260,000		247,911
John Deere Capital Corp.
3.90% due 01/15/2008		85,000		83,395
7.00% due 03/15/2012		400,000		429,275
JP Morgan Chase Capital XVIII, Series R
6.95% due 08/17/2036		115,000		121,029
JPMorgan Chase & Company
3.125% due 12/11/2006		125,000		124,252
JPMorgan Chase & Company, EMTN
4.25% due 06/09/2011	EUR	39,000		50,600
4.375% due 11/12/2019 (b)		50,000		64,216
JSG Funding PLC
7.75% due 04/01/2015	$	275,000		250,250
9.625% due 10/01/2012		425,000		443,594
Legg Mason, Inc.
6.75% due 07/02/2008		165,000		169,021
Lehman Brothers Holdings, Inc.
3.50% due 08/07/2008		290,000		280,355
Lehman Brothers Holdings, Inc., Series MTNG
3.95% due 11/10/2009		325,000		312,471
4.80% due 03/13/2014		200,000		190,709
Mangrove Bay Pass Through Trust
6.102% due 07/15/2033 (b)		200,000		190,640
MBNA America Bank NA, EMTN
4.625% due 08/03/2009		300,000		295,282
MBNA Europe Funding Plc, EMTN
4.50% due 01/23/2009	EUR	33,000		42,907
Mellon Funding Corp.
6.375% due 11/08/2011	GBP	49,000		97,995
Merrill Lynch & Company, Inc.
6.05% due 05/16/2016	$	575,000		593,073
Merrill Lynch & Company, Inc., EMTN
4.625% due 10/02/2013	EUR	68,000		89,377
Merrill Lynch & Company, Inc., Series CPI
4.33% due 03/02/2009 (b)	$	150,000		145,398
Mizuho Capital Investment 1, Ltd.
6.686% due 03/29/2049 (b)		126,000		126,208
Morgan Stanley, Series GMTN
5.125% due 11/30/2015	GBP	100,000		186,723
Morgan Stanley, Series MTN
6.25% due 08/09/2026	$	100,000		101,854
MUFG Capital Finance 1, Ltd.
6.346% due 07/29/2049 (b)		200,000		200,201
National Rural Utilities Cooperative Finance Corp.
3.875% due 02/15/2008		200,000		196,173
4.375% due 10/01/2010		100,000		96,639
Nationwide Building Society, EMTN
3.375% due 08/17/2015 (b)	EUR	55,000		68,857

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
Nell AF SARL
8.375% due 08/15/2015 (a)	$	625,000	$	625,781
8.375% due 08/15/2015	EUR	50,000		66,361
Nexstar Finance Holdings LLC
zero coupon, Step up to 11.375% on
04/01/2008 due 04/01/2013	$	450,000		371,250
Nexstar Finance, Inc.
7.00% due 01/15/2014 (a)		275,000		246,125
Nisource Finance Corp.
5.9681% due 11/23/2009 (b)		140,000		140,073
Nissan Motor Acceptance Corp.
4.625% due 03/08/2010		120,000		116,395
Residential Capital Corp.
6.125% due 11/21/2008		151,000		151,329
6.6069% due 04/17/2009 (b)		170,000		170,724
7.3369% due 04/17/2009 (b)		125,000		125,556
SLM Corp., MTN
5.625% due 08/01/2033		45,000		42,090
SLM Corp., MTN, Series A
5.685% due 01/26/2009 (b)		220,000		220,755
SLM Corp., Series CPI
4.30% due 04/01/2009 (b)		365,000		351,422
Stripes Acquisition LLC
10.625% due 12/15/2013		200,000		210,000
Sun Life Canada US Capital Trust
8.526% due 05/29/2049		270,000		285,630
Torchmark Corp.
6.375% due 06/15/2016		230,000		237,354
Toyota Motor Credit Corp.
2.875% due 08/01/2008		235,000		225,108
UBS AG
4.50% due 09/16/2019	EUR	62,000		80,973

				25,864,411
Food & Beverages - 0.70%
B&G Foods Holding Corp.
8.00% due 10/01/2011	$	500,000		507,500
Birds Eye Foods, Inc.
11.875% due 11/01/2008		75,000		75,563
Cott Beverages USA, Inc.
8.00% due 12/15/2011		265,000		268,313
Del Monte Corp.
8.625% due 12/15/2012		325,000		340,031
Dole Food, Inc.
8.625% due 05/01/2009		175,000		172,375
8.875% due 03/15/2011 (a)		225,000		219,375
General Mills, Inc.
3.875% due 11/30/2007		215,000		210,396
6.449% due 10/15/2006		150,000		150,142
Kraft Foods, Inc.
4.625% due 11/01/2006		105,000		104,845
Le*Nature's, Inc.
10.00% due 06/15/2013		200,000		209,000
Level 3 Financing, Inc.
10.75% due 10/15/2011		500,000		520,625

The accompanying notes are an integral part of the financial statements. 373

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Food & Beverages (continued)
McCormick & Company, Inc.
5.20% due 12/15/2015	$	430,000	$	421,862
5.80% due 07/15/2011		130,000		132,117
McCormick & Company, Inc., MTN
3.35% due 04/15/2009		110,000		105,931
Nutro Products, Inc.
9.23% due 10/15/2013 (b)		150,000		154,500
10.75% due 04/15/2014		375,000		395,625
Panamerican Beverages, Inc.
7.25% due 07/01/2009		35,000		36,120
PepsiAmericas, Inc.
4.875% due 01/15/2015		55,000		52,624
SABMiller PLC
6.20% due 07/01/2011		485,000		497,513
Sysco Corp.
5.375% due 09/21/2035 (a)		100,000		94,196
Tate & Lyle International Finance PlC
6.125% due 06/15/2011		200,000		203,464
The Wornick Company
10.875% due 07/15/2011		200,000		190,000
Tricon Global Restaurants, Inc.
7.65% due 05/15/2008		185,000		191,190
William Wrigley Jr. Company
4.65% due 07/15/2015		60,000		56,699

				5,310,006
Forest Products - 0.02%
Weyerhaeuser Company
7.375% due 03/15/2032		115,000		120,353
Furniture & Fixtures - 0.13%
Norcraft Companies LP
9.00% due 11/01/2011		275,000		276,375
Norcraft Holdings Capital
zero coupon, Step up to 9.75% on
09/01/2008 due 09/01/2012		225,000		182,250
Sealy Mattress Company
8.25% due 06/15/2014 (a)		500,000		505,000

				963,625
Gas & Pipeline Utilities - 0.82%
ANR Pipeline Company
8.875% due 03/15/2010		110,000		115,395
Aquila Canada Finance Corp.
7.75% due 06/15/2011		200,000		209,500
Atlas Pipeline Partners LP
8.125% due 12/15/2015		50,000		51,000
8.125% due 12/15/2015		175,000		178,500
Atmos Energy Corp.
4.00% due 10/15/2009		230,000		219,572
5.95% due 10/15/2034		40,000		37,525
Boardwalk Pipelines LLC
5.50% due 02/01/2017		90,000		86,684
Colorado Interstate Gas Company
5.95% due 03/15/2015		300,000		282,203
6.80% due 11/15/2015		400,000		396,426
Duke Capital LLC
7.50% due 10/01/2009		130,000		137,874

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
El Paso Natural Gas, Series A
7.625% due 08/01/2010	$	15,000	$	15,413
El Paso Production Holding Company
7.75% due 06/01/2013		575,000		583,625
Kinder Morgan Finance Company, ULC
5.35% due 01/05/2011 (a)		130,000		124,597
5.70% due 01/05/2016		480,000		436,766
National Gas Company
6.05% due 01/15/2036		105,000		99,779
National Gas Co of Trinidad & Tobago Ltd,
Series REGS
6.05% due 01/15/2036		100,000		95,639
Panhandle Eastern Pipe Line Company
4.80% due 08/15/2008		155,000		152,467
Panhandle Eastern Pipe Line Company, Series B
2.75% due 03/15/2007		130,000		128,096
Piedmont Natural Gas Company
6.00% due 12/19/2033		15,000		15,079
Roseton/Danskammer, Series A
7.27% due 11/08/2010		200,000		199,000
Southern California Gas Co.
5.75% due 11/15/2035		265,000		262,091
Southern Natural Gas Company
8.875% due 03/15/2010		460,000		482,562
Sunoco, Inc.
4.875% due 10/15/2014		30,000		28,316
Williams Companies, Inc.
7.625% due 07/15/2019 (a)		50,000		50,750
7.75% due 06/15/2031		100,000		97,750
8.125% due 03/15/2012		1,550,000		1,635,250
8.75% due 03/15/2032		25,000		26,937
Williams Companies, Inc., Series A
7.50% due 01/15/2031		125,000		120,313

				6,269,109
Gold - 0.02%
Newmont Mining Corp.
5.875% due 04/01/2035		130,000		120,492
Healthcare Products - 0.12%
Fresenius Medical Care Capital Trust
7.875% due 02/01/2008		280		284,200
7.875% due 06/15/2011		25,000		25,500
Medtronic, Inc., Series B
4.375% due 09/15/2010		145,000		140,346
4.75% due 09/15/2015		330,000		310,780
VWR International, Inc.
6.875% due 04/15/2012		50,000		48,750
8.00% due 04/15/2014 (a)		100,000		99,000

				908,576
Healthcare Services - 0.26%
Concentra Operating Corp.
9.125% due 06/01/2012		200,000		208,250
9.50% due 08/15/2010		75,000		78,000
DaVita, Inc.
6.625% due 03/15/2013		275,000		268,125
7.25% due 03/15/2015		200,000		196,000

The accompanying notes are an integral part of the financial statements. 374

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Healthcare Services (continued)
Team Health, Inc.
11.25% due 12/01/2013	$	225,000	$	232,875
UnitedHealth Group, Inc.
5.25% due 03/15/2011		235,000		233,690
US Oncology, Inc.
9.00% due 08/15/2012		150,000		155,250
10.75% due 08/15/2014		75,000		81,562
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		250,000		242,500
WellPoint, Inc.
4.25% due 12/15/2009		40,000		38,681
5.00% due 01/15/2011		280,000		275,257

				2,010,190
Holdings Companies/Conglomerates - 0.24%
Hutchison Whampoa Finance, Ltd.
5.875% due 07/08/2013	EUR	62,000		85,912
6.95% due 08/01/2007	$	100,000		101,303
Hutchison Whampoa International, Ltd.
6.25% due 01/24/2014		420,000		432,178
Leucadia National Corp.
7.00% due 08/15/2013		415,000		408,775
Visant Corp.
7.625% due 10/01/2012		325,000		318,500
Visant Holding Corp.
zero coupon, Step up to 10.25% on
12/01/2008 due 12/01/2013		600,000		484,500

				1,831,168
Homebuilders - 0.17%
Centex Corp.
4.55% due 11/01/2010		75,000		71,499
5.45% due 08/15/2012		260,000		251,797
KB Home
6.25% due 06/15/2015 (a)		190,000		171,273
Lennar Corp.
5.95% due 10/17/2011		25,000		24,832
Lennar Corp., Series B
5.60% due 05/31/2015		205,000		193,336
6.1456% due 03/19/2009 (b)		70,000		69,957
MDC Holdings, Inc., MTN
5.375% due 12/15/2014		60,000		54,332
NVR, Inc.
5.00% due 06/15/2010		115,000		111,215
Pulte Homes, Inc.
4.875% due 07/15/2009 (a)		70,000		68,494
5.20% due 02/15/2015 (a)		325,000		299,704
Ryland Group, Inc.
5.375% due 01/15/2015		20,000		18,084

				1,334,523
Hotels & Restaurants - 0.29%
American Casino & Entertainment Properties LLC
7.85% due 02/01/2012		400,000		405,000
Harrah's Operating Company, Inc.
5.50% due 07/01/2010		505,000		498,586

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Hotels & Restaurants (continued)
Majestic Holding Company LLC
zero coupon, Step up to 12.5% on
10/15/2008 due 10/15/2011	$	125,000	$	91,875
O'Charleys, Inc.
9.00% due 11/01/2013		250,000		255,000
Poster Financial Group, Inc.
8.75% due 12/01/2011		400,000		418,000
Real Mex Restaurants, Inc.
10.00% due 04/01/2010		165,000		171,600
Resorts International Hotel and Casino, Inc.
11.50% due 03/15/2009		25,000		26,156
Restaurant Company
10.00% due 10/01/2013		275,000		245,438
Yum! Brands, Inc.
7.70% due 07/01/2012		130,000		142,305

				2,253,960

Household Appliances - 0.04%
Gregg Appliances, Inc.
9.00% due 02/01/2013		150,000		135,375
Whirlpool Corp.
6.125% due 06/15/2011		140,000		141,977

				277,352

Household Products - 0.06%
Simmons Bedding Company
zero coupon, Step up to 10.00% on
12/15/2009 due 12/15/2014		350,000		244,125
7.875% due 01/15/2014 (a)		250,000		241,250

				485,375

Industrial Machinery - 0.05%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		400,000		406,000
Insurance - 0.56%
ACE INA Holdings, Inc.
5.875% due 06/15/2014		150,000		149,763
Allstate Financial Global Funding
5.25% due 02/01/2007		100,000		99,929
Allstate Life Funding LLC, EMTN
6.375% due 01/17/2011	GBP	49,000		96,789
ASIF II, EMTN
5.625% due 02/01/2012		49,000		94,730
Cigna Corp.
7.40% due 05/15/2007	$	80,000		80,937
Cincinnati Financial Corp.
6.92% due 05/15/2028		150,000		162,072
Genworth Financial, Inc.
5.75% due 06/15/2014		380,000		385,176
Highmark, Inc.
6.80% due 08/15/2013		225,000		235,786
ING Security Life Institutional Funding
2.70% due 02/15/2007		195,000		192,269
Jefferson-Pilot Capital Trust A
8.14% due 01/15/2046		120,000		125,449
Marsh & McLennan Companies, Inc.
5.375% due 07/15/2014		465,000		444,197

The accompanying notes are an integral part of the financial statements. 375

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Insurance (continued)
MassMutual Global Funding II
3.25% due 06/15/2007	$	140,000	$	137,717
Monumental Global Funding, Ltd., EMTN
5.375% due 03/13/2009	EUR	39,000		51,674
Nationwide Financial Services, Inc.
5.90% due 07/01/2012	$	200,000		203,189
Nationwide Mutual Insurance Company
6.60% due 04/15/2034		135,000		132,302
New York Life Global Funding
4.625% due 08/16/2010		235,000		229,650
NLV Financial Corp.
7.50% due 08/15/2033		160,000		169,242
Ohio National Financial Services, Inc.
6.35% due 04/01/2013		15,000		15,438
Pacific Life Funding LLC, EMTN
5.125% due 01/20/2015	GBP	89,000		168,785
5.50% due 05/14/2009	EUR	39,000		51,876
Principal Life Global Funding I
5.25% due 01/15/2013	$	190,000		187,892
Principal Life Income Funding Trusts
5.20% due 11/15/2010 (a)		40,000		39,811
Principal Financial Global Funding LLC, EMTN
4.50% due 01/22/2009	EUR	39,000		50,439
Prudential Funding LLC, MTN
6.60% due 05/15/2008	$	150,000		153,016
RLI Corp.
5.95% due 01/15/2014		35,000		34,169
Security Benefit Life Insurance Company
7.45% due 10/01/2033		95,000		105,662
The St. Paul Companies, Inc.
5.75% due 03/15/2007		55,000		55,097
Transamerica Capital II
7.65% due 12/01/2026		135,000		149,749
Transatlantic Holdings, Inc.
5.75% due 12/14/2015		170,000		166,757
Travelers Insurance Company Institutional
Funding, Ltd.
5.75% due 12/06/2011	GBP	49,000		95,194
Travelers Property Casualty Corp.
3.75% due 03/15/2008	$	40,000		38,948

				4,303,704
International Oil - 0.44%
Canadian Natural Resources, Ltd.
6.45% due 06/30/2033		75,000		76,556
Newfield Exploration Company
6.625% due 09/01/2014		35,000		34,213
OAO Gazprom, Series REGS
9.625% due 03/01/2013		200,000		236,120
Pemex Project Funding Master Trust
5.75% due 12/15/2015		665,000		647,045
6.625% due 06/15/2035		335,000		328,970
6.6294% due 06/15/2010 (b)		395,000		404,085
7.75% due 09/28/2049		344,000		350,536
8.625% due 02/01/2022		175,000		210,875

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
International Oil (continued)
Pemex Project Funding Master Trust, Series REGS
6.25% due 08/05/2013	EUR	65,000	$	90,171
6.625% due 06/15/2035	$	200,000		196,400
Petro-Canada
5.95% due 05/15/2035		265,000		251,791
PF Export Receivables Master Trust
6.436% due 06/01/2015		72,624		73,350
XTO Energy, Inc.
5.65% due 04/01/2016		200,000		197,666
YPF SA, MTN, Series C
10.00% due 11/02/2028		220,000		264,550

				3,362,328
Investment Companies - 0.01%
BES Finance, Ltd., EMTN
6.25% due 05/17/2011	EUR	66,000		92,109
Leisure Time - 1.00%
AMC Entertainment, Inc.
8.00% due 03/01/2014	$	325,000		303,875
11.00% due 02/01/2016		650,000		706,063
AMF Bowling Worldwide, Inc.
10.00% due 03/01/2010		200,000		205,000
Boyd Gaming Corp.
8.75% due 04/15/2012		200,000		209,750
Chukchansi Economic Development Authority
8.06% due 11/15/2012		150,000		154,500
Cinemark, Inc.
zero coupon, Step up to 9.75% on
03/15/2009 due 03/15/2014		725,000		565,500
9.00% due 02/01/2013		250,000		258,750
Festival Fun Parks LLC
10.875% due 04/15/2014		100,000		98,250
Herbst Gaming, Inc.
8.125% due 06/01/2012		75,000		76,125
International Speedway Corp.
4.20% due 04/15/2009		90,000		86,429
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014		175,000		174,125
Lottomatica SpA
4.80% due 12/22/2008	EUR	30,000		38,769
Majestic Star Casino LLC
9.50% due 10/15/2010	$	225,000		231,469
Mandalay Resort Group
10.25% due 08/01/2007		75,000		77,625
MGM Mirage, Inc.
6.00% due 10/01/2009		180,000		175,950
6.625% due 07/15/2015		325,000		305,906
6.75% due 09/01/2012		15,000		14,587
8.50% due 09/15/2010		450,000		473,625
9.75% due 06/01/2007		100,000		102,500
MTR Gaming Group, Inc.
9.00% due 06/01/2012		100,000		100,750
Penn National Gaming, Inc.
6.75% due 03/01/2015		525,000		505,313
Pinnacle Entertainment, Inc.
8.25% due 03/15/2012		125,000		125,625

The accompanying notes are an integral part of the financial statements. 376

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Leisure Time (continued)
Pokagon Gaming Authority
10.375% due 06/15/2014	$	375,000	$	396,563
Royal Caribbean Cruises, Ltd.
7.00% due 06/15/2013 (a)		100,000		100,407
Speedway Motorsports, Inc.
6.75% due 06/01/2013		335,000		329,137
Station Casinos, Inc.
6.00% due 04/01/2012		65,000		62,156
6.50% due 02/01/2014		150,000		139,875
6.875% due 03/01/2016		150,000		138,937
7.75% due 08/15/2016		580,000		598,125
Town Sports International, Inc.
9.625% due 04/15/2011		112,000		117,880
Trump Entertainment Resorts, Inc.
8.50% due 06/01/2015		525,000		507,937
Tunica-Biloxi Gaming Authority
9.00% due 11/15/2015		225,000		231,188

				7,612,691
Life Sciences - 0.07%
Fisher Scientific International, Inc.
6.125% due 07/01/2015		525,000		519,094
Manufacturing - 0.23%
Koppers, Inc.
9.875% due 10/15/2013		256,000		277,120
RBS Global & Rexnord Corp.
9.50% due 08/01/2014		700,000		703,500
11.75% due 08/01/2016		100,000		103,000
Stewart & Stevenson LLC
10.00% due 07/15/2014		275,000		281,875
Tyco International Group SA
6.375% due 10/15/2011		390,000		406,752
Tyco International Group SA, EMTN
5.50% due 11/19/2008	EUR	10,000		13,129

				1,785,376
Medical-Hospitals - 0.24%
Community Health Systems, Inc.
6.50% due 12/15/2012	$	200,000		187,000
CRC Health Corp.
10.75% due 02/01/2016		225,000		229,500
Genesis Healthcare Corp.
8.00% due 10/15/2013		400,000		415,000
HCA, Inc.
8.75% due 09/01/2010		650,000		654,875
Triad Hospitals, Inc.
7.00% due 11/15/2013		400,000		382,000

				1,868,375
Metal & Metal Products - 0.30%
Earle M. Jorgensen Company
9.75% due 06/01/2012		450,000		478,125
Gibraltar Industries, Inc.
8.00% due 12/01/2015		675,000		668,250
Hawk Corp.
8.75% due 11/01/2014		181,000		181,000

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Metal & Metal Products (continued)
Indalex Holding Corp.
11.50% due 02/01/2014	$	175,000	$	186,375
Metals USA, Inc.
11.125% due 12/01/2015		100,000		110,250
Mobile Mini, Inc.
9.50% due 07/01/2013		124,000		132,680
Neenah Foundary Company
11.00% due 09/30/2010		150,000		162,000
Novelis, Inc.
7.25% due 02/15/2015		325,000		308,750
Rio Tinto Finance PLC, EMTN
5.125% due 05/10/2007	EUR	27,000		34,879

				2,262,309
Mining - 0.02%
Barrick Gold Finance Company
4.875% due 11/15/2014	$	30,000		28,447
Placer Dome, Inc.
6.45% due 10/15/2035		25,000		25,469
Rio Tinto Finance USA, Ltd.
2.625% due 09/30/2008		140,000		132,237

				186,153
Office Furnishings & Supplies - 0.13%
ACCO Brands Corp.
7.625% due 08/15/2015		200,000		189,500
IKON Office Solutions, Inc.
7.75% due 09/15/2015 (a)		275,000		276,375
Interface, Inc.
9.50% due 02/01/2014		25,000		25,687
10.375% due 02/01/2010		300,000		326,625
Staples, Inc.
7.125% due 08/15/2007		200,000		202,403

				1,020,590
Paper - 0.33%
Abitibi-Consolidated, Inc.
5.25% due 06/20/2008		175,000		167,563
6.95% due 12/15/2006		10,000		10,050
8.55% due 08/01/2010 (a)		125,000		123,437
Boise Cascade LLC
7.125% due 10/15/2014		485,000		451,050
Celulosa Arauco y Constitucion SA
5.125% due 07/09/2013 (a)		80,000		75,979
8.625% due 08/15/2010		220,000		242,395
Domtar, Inc.
5.375% due 12/01/2013		175,000		149,625
Georgia-Pacific Corp.
7.70% due 06/15/2015		100,000		99,125
8.125% due 05/15/2011		150,000		153,375
Jefferson Smurfit Corp.
8.25% due 10/01/2012		200,000		189,500
NewPage Corp.
10.00% due 05/01/2012 (a)		25,000		26,031
11.7388% due 05/01/2012 (b)		175,000		189,000
12.00% due 05/01/2013 (a)		175,000		180,688

The accompanying notes are an integral part of the financial statements. 377

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Paper (continued)
Norske Skog Canada, Ltd.
7.375% due 03/01/2014	$	200,000	$	182,500
Verso Paper Holdings LLC and Verso Paper, Inc.
9.125% due 08/01/2014		175,000		174,125
Verso Paper Holdings LLC and Verso Paper, Inc.
9.25% due 08/01/2014		75,000		75,563

				2,490,006
Petroleum Services - 0.48%
BP Canada Finance Company
3.375% due 10/31/2007		60,000		58,687
Dresser-Rand Group, Inc.
7.375% due 11/01/2014		454,000		436,975
Gaz Capital for Gazprom, Series EMTN
4.56% due 12/09/2012	EUR	100,000		126,262
Gaz Capital for Gazprom, Series REGS
8.625% due 04/28/2034 (a)	$	1,030,000		1,281,320
Halliburton Company
5.50% due 10/15/2010		375,000		376,479
Hanover Compressor Company
7.50% due 04/15/2013		300,000		299,250
9.00% due 06/01/2014		100,000		106,000
Hanover Equipment Trust
8.75% due 09/01/2011		350,000		364,000
Premcor Refining Group, Inc.
6.75% due 02/01/2011		120,000		125,534
Pride International, Inc.
7.375% due 07/15/2014		50,000		50,875
SESI LLC
6.875% due 06/01/2014		450,000		441,000

				3,666,382
Pharmaceuticals - 0.22%
AmerisourceBergen Corp.
5.625% due 09/15/2012		400,000		389,238
Aventis SA, EMTN
4.25% due 09/15/2010	EUR	65,000		84,180
Hospira, Inc.
4.95% due 06/15/2009	$	80,000		78,989
Merck & Company, Inc.
2.50% due 03/30/2007		100,000		98,407
Mylan Laboratories, Inc.
5.75% due 08/15/2010 (a)		150,000		145,875
Omnicare, Inc.
6.75% due 12/15/2013		350,000		336,000
6.875% due 12/15/2015		125,000		119,531
Teva Pharmaceutical Finance LLC
5.55% due 02/01/2016		200,000		194,275
Warner Chilcott Corp.
8.75% due 02/01/2015		200,000		200,000

				1,646,495
Photography - 0.08%
Eastman Kodak Company
7.25% due 11/15/2013 (a)		640,000		616,349

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Plastics - 0.03%
Covalence Specialty Materials Corp.
10.25% due 03/01/2016	$	250,000	$	240,000
Publishing - 0.28%
Dex Media East LLC
9.875% due 11/15/2009		150,000		158,250
12.125% due 11/15/2012		250,000		278,750
Dex Media West LLC
8.50% due 08/15/2010		25,000		25,625
9.875% due 08/15/2013		225,000		241,593
Haights Cross Communications, Inc.
12.50% due 08/15/2011 (a)		175,000		106,969
Haights Cross Operating Company
11.75% due 08/15/2011		300,000		309,375
Houghton Mifflin Company
8.25% due 02/01/2011		300,000		303,000
Medianews Group, Inc.
6.375% due 04/01/2014		75,000		66,375
6.875% due 10/01/2013		375,000		343,125
Morris Publishing Group LLC
7.00% due 08/01/2013		300,000		285,000

				2,118,062
Railroads & Equipment - 0.13%
Canadian National Railway Company
6.25% due 08/01/2034		204,000		215,784
Grupo Transportacion Ferroviaria Mexicana,
S.A. de C.V.
9.375% due 05/01/2012		125,000		132,344
Norfolk Southern Corp.
5.59% due 05/17/2025		30,000		28,985
6.00% due 04/30/2008		240,000		242,223
7.25% due 02/15/2031		35,000		40,597
7.35% due 05/15/2007		240,000		242,878
Union Pacific Corp.
5.75% due 10/15/2007 (a)		85,000		85,127

				987,938
Real Estate - 0.57%
AMB Property LP, Series MTN
5.90% due 08/15/2013		45,000		45,383
Archstone-Smith Operating Trust, REIT
5.25% due 05/01/2015		180,000		174,556
5.625% due 08/15/2014		15,000		14,981
Arden Realty LP, REIT
5.20% due 09/01/2011		60,000		59,740
AvalonBay Communities, Inc., REIT
4.95% due 03/15/2013		60,000		57,728
6.125% due 11/01/2012		185,000		190,398
AvalonBay Communities, Inc., Series MTN
6.625% due 09/15/2011		265,000		277,810
BF Saul, REIT
7.50% due 03/01/2014		150,000		152,250
Camden Property Trust, REIT
4.375% due 01/15/2010		90,000		87,289
Developers Diversified Realty Corp., REIT
3.875% due 01/30/2009 (a)		30,000		28,925

The accompanying notes are an integral part of the financial statements. 378

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Real Estate (continued)
EOP Operating LP
4.00% due 07/15/2026	$	125,000	$	129,415
Federal Realty Investment Trust
6.00% due 07/15/2012		135,000		137,455
Felcor Lodging LP, REIT
9.00% due 06/01/2011		75,000		79,313
9.5703% due 06/01/2011 (b)		225,000		230,625
Host Marriott LP, REIT
6.375% due 03/15/2015		75,000		72,000
7.125% due 11/01/2013		250,000		252,500
Host Marriott LP, Series Q, REIT
6.75% due 06/01/2016		1,100,000		1,067,000
iStar Financial, Inc.
5.80% due 03/15/2011		45,000		45,112
iStar Financial, Inc., REIT
6.05% due 04/15/2015		45,000		45,146
iStar Financial, Inc., Series B, REIT
4.875% due 01/15/2009		90,000		88,659
Kimco Realty Corp., MTN, REIT
4.904% due 02/18/2015		60,000		56,722
Reckson Operating Partnership, REIT
6.00% due 03/31/2016		210,000		209,573
Simon Property Group LP, REIT
4.60% due 06/15/2010		235,000		228,532
5.375% due 06/01/2011		55,000		54,807
Simon Property Group, LP, REIT
3.75% due 01/30/2009		180,000		173,273
Ventas Realty LP, REIT
6.75% due 06/01/2010		200,000		203,750
Ventas Realty LP/ Capital Corp.
6.50% due 06/01/2016		150,000		147,750
Vornado Realty LP, REIT
4.50% due 08/15/2009		80,000		77,869

				4,388,561
Retail - 0.16%
Home Depot, Inc.
5.40% due 03/01/2016		280,000		277,338
JC Penney Company, Inc.
7.375% due 08/15/2008		355,000		366,769
Leslie's Poolmart
7.75% due 02/01/2013		350,000		344,750
Sunstate Equipment Company LLC
10.50% due 04/01/2013		225,000		234,562

				1,223,419
Retail Grocery - 0.17%
Couche-Tard US LP
7.50% due 12/15/2013		450,000		454,500
Delhaize America, Inc.
8.125% due 04/15/2011		45,000		48,223
Pathmark Stores, Inc.
8.75% due 02/01/2012		325,000		314,438
Safeway, Inc.
4.125% due 11/01/2008		65,000		63,187
The Kroger Company
7.80% due 08/15/2007		110,000		111,790

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Retail Grocery (continued)
The Kroger Company (continued)
8.05% due 02/01/2010	$	290,000	$	311,228

				1,303,366
Retail Trade - 0.46%
American Greetings Corp.
7.375% due 06/01/2016		100,000		100,625
Fortune Brands, Inc.
5.125% due 01/15/2011		70,000		68,619
FTD, Inc.
7.75% due 02/15/2014		525,000		511,875
GSC Holdings Corp.
8.00% due 10/01/2012 (a)		1,125,000		1,148,906
Home Depot, Inc.
3.75% due 09/15/2009 (a)		115,000		110,715
J.C. Penney Company, Inc.
9.00% due 08/01/2012		155,000		179,480
May Department Stores Company
3.95% due 07/15/2007		125,000		123,180
Neff Corp.
11.25% due 06/15/2012		350,000		376,250
The Pantry, Inc.
7.75% due 02/15/2014		375,000		369,375
Wal-Mart Stores, Inc.
4.75% due 01/29/2013	GBP	68,000		126,947
5.25% due 09/01/2035	$	235,000		216,345
6.875% due 08/10/2009		155,000		162,073

				3,494,390
Sanitary Services - 0.16%
Allied Waste North America, Inc.
8.50% due 12/01/2008		225,000		234,000
Allied Waste North America, Inc., Series B
9.25% due 09/01/2012		175,000		187,250
Casella Waste Systems, Inc.
9.75% due 02/01/2013		750,000		785,625
Oakmont Asset Trust
4.514% due 12/22/2008		20,000		19,473
Waste Management, Inc.
7.375% due 05/15/2029		15,000		16,951

				1,243,299
Semiconductors - 0.23%
Flextronics International, Ltd.
6.25% due 11/15/2014		175,000		167,344
Freescale Semiconductor, Inc.
6.875% due 07/15/2011		435,000		443,700
Intel Corp.
2.95% due 12/15/2035		250,000		219,062
2.95% due 12/15/2035 (a)		125,000		109,531
Spansion LLC
11.25% due 01/15/2016		225,000		230,344
STATS ChipPAC, Ltd.
6.75% due 11/15/2011		100,000		96,000
7.50% due 07/19/2010		500,000		501,250

				1,767,231

The accompanying notes are an integral part of the financial statements. 379

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Software - 0.22%
Oracle Corp.
5.00% due 01/15/2011	$	580,000	$	571,058
Serena Software, Inc.
10.375% due 03/15/2016		125,000		127,031
SS&C Technologies, Inc.
11.75% due 12/01/2013		100,000		104,500
UGS Capital Corp. II
10.38% due 06/01/2011 (b)		475,000		478,562
UGS Corp.
10.00% due 06/01/2012		400,000		430,000

				1,711,151
Steel - 0.05%
Gerdau Ameristeel Corp.
10.375% due 07/15/2011		350,000		377,125
Telecommunications Equipment &
Services - 0.78%
Citizens Communications Company
6.25% due 01/15/2013		200,000		193,250
9.00% due 08/15/2031		400,000		422,000
Deutsche Telekom International Finance BV
3.875% due 07/22/2008		85,000		82,874
6.625% due 07/11/2011	EUR	60,000		85,176
7.50% due 05/29/2007		26,000		34,125
Dycom Industries, Inc.
8.125% due 10/15/2015	$	275,000		277,750
France Telecom SA
7.75 due 03/01/2011		520,000		567,826
France Telecom SA, EMTN
7.00% due 12/23/2009	EUR	65,000		90,637
8.125% due 01/28/2033 (a)		10,000		17,274
Insight Midwest LP
9.75% due 10/01/2009	$	100,000		101,750
Intelsat Ltd.
10.4844% due 01/15/2012 (b)		400,000		406,000
Intelsat Subsidiary Holding Co., Ltd.
8.25% due 01/15/2013		225,000		224,438
Lucent Technologies, Inc.
6.50% due 01/15/2028		275,000		231,688
8.00% due 08/01/2031 (a)		236,000		236,068
Nortel Networks, Ltd.
9.73% due 07/15/2011 (b)		550,000		555,500
PanAmSat Corp.
9.00% due 08/15/2014		400,000		407,000
SBC Communications, Inc.
5.10% due 09/15/2014		80,000		76,293
6.45% due 06/15/2034 (a)		405,000		399,389
Syniverse Technologies Inc., Series B
7.75% due 08/15/2013		300,000		291,750
Telus Corp.
7.50% due 06/01/2007		110,000		111,529
8.00% due 06/01/2011		170,000		186,946
Verizon Global Funding Corp.
7.25% due 12/01/2010		110,000		117,374
7.75% due 12/01/2030		285,000		320,279

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Telecommunications Equipment &
Services (continued)
Wind Acquisition Finance SA
10.75% due 12/01/2015	$	450,000	$	488,812
Zeus Special Subsidiary, Ltd.
zero coupon, Step up to 9.25% on
02/01/2010 due 02/01/2015		100,000		68,500

				5,994,228
Telephone - 1.11%
AT&T Corp.
7.30% due 11/15/2011 (b)		50,000		53,981
AT&T, Inc.
5.30% due 11/15/2010		340,000		337,293
5.6119% due 11/14/2008 (b)		100,000		100,265
BellSouth Corp.
5.53% due 11/15/2007 (b)		110,000		110,126
Nordic Telephone Company Holdings
8.25% due 05/01/2016	EUR	100,000		135,121
8.875% due 05/01/2016	$	1,150,000		1,201,750
Qwest Corp.
7.50% due 10/01/2014		850,000		864,875
7.875% due 09/01/2011		350,000		364,875
8.5794% due 06/15/2013 (b)		125,000		134,531
8.875% due 03/15/2012		575,000		622,437
Sprint Capital Corp.
6.875% due 11/15/2028		380,000		383,711
7.625% due 01/30/2011		295,000		316,530
Telecom Italia Capital SA
4.00% due 01/15/2010		150,000		142,525
5.25% due 11/15/2013		325,000		309,606
7.20% due 07/18/2036		280,000		292,433
Telecom Italia Finance SA, EMTN
5.875% due 01/24/2008	EUR	14,000		18,390
6.875% due 01/24/2013		52,000		74,740
7.75% due 01/24/2033		11,000		17,258
Telefonica Emisones SAU
5.984% due 06/20/2011	$	185,000		187,751
6.421% due 06/20/2016		345,000		352,752
Telefonica Europe BV, Series EMTN
5.125% due 02/14/2013	EUR	30,000		39,800
Telefonos de Mexico SA de CV
4.50% due 11/19/2008	$	120,000		117,221
4.75% due 01/27/2010		155,000		150,819
5.50% due 01/27/2015		350,000		339,443
US LEC Corp.
13.62% due 10/01/2009 (b)		375,000		396,094
Valor Telecommunications Enterprise
7.75% due 02/15/2015		225,000		237,375
Windstream Corp.
8.625% due 08/01/2016		1,085,000		1,147,387

				8,449,089
Tires & Rubber - 0.04%
Goodyear Tire & Rubber Company
7.857% due 08/15/2011 (a)		325,000		313,625

The accompanying notes are an integral part of the financial statements. 380

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Tobacco - 0.16%
Altria Group, Inc.
7.20% due 02/01/2007	$	130,000	$	130,566
BAT International Finance PLC, EMTN
5.125% due 07/09/2013	EUR	61,000		81,013
Imperial Tobacco Finance PLC, EMTN
6.875% due 06/13/2012	GBP	49,000		99,599
Reynolds American, Inc.
6.50% due 07/15/2010	$	45,000		45,364
7.25% due 06/01/2013		675,000		691,426
7.625% due 06/01/2016		175,000		182,587

				1,230,555
Toys, Amusements & Sporting Goods - 0.05%
K2, Inc.
7.375% due 07/01/2014		410,000		397,700
Transportation - 0.35%
Bombardier, Inc.
6.30% due 05/01/2014		375,000		333,750
6.75% due 05/01/2012		875,000		821,406
Bristow Group, Inc.
6.125% due 06/15/2013		425,000		397,375
CHC Helicopter Corp.
7.375% due 05/01/2014		450,000		423,000
Evergreen International Aviation, Inc.
12.00% due 05/15/2010		150,000		160,500
FedEx Corp.
2.65% due 04/01/2007		200,000		196,571
5.50% due 08/15/2009		75,000		75,385
Mobile Services Group, Inc.
9.75% due 08/01/2014		300,000		304,125

				2,712,112
Utility Service - 0.04%
Public Service Company of New Mexico
4.40% due 09/15/2008		210,000		205,451
Veolia Environnement, EMTN
5.875% due 02/01/2012	EUR	30,000		41,380
Veolia Environnement, Series EMTN
4.875% due 05/28/2013		50,000		66,251

				313,082

TOTAL CORPORATE BONDS (Cost $215,286,341)		$		214,568,314


CONVERTIBLE BONDS - 0.10%
Insurance - 0.01%
Fortis Insurance NV
7.75% due 01/26/2008	$	25,000		33,660
Internet Retail - 0.04%
Amazon.com, Inc.
4.75% due 02/01/2009		350,000		339,062
Telecommunications Equipment &
Services - 0.05%
Juniper Networks, Inc.
zero coupon due 06/15/2008		400,000		400,000

TOTAL CONVERTIBLE BONDS (Cost $783,476)		$		772,722

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


MUNICIPAL BONDS - 0.10%
California - 0.06%
California State Public Works Board
5.00% due 01/01/2021	$	225,000	$	237,861
State of California
5.25% due 04/01/2034		100,000		106,055
5.50% due 11/01/2033		100,000		108,469

				452,385

Kansas - 0.01%
Kansas Development Finance Authority
5.501% due 05/01/2034		120,000		119,531
New York - 0.02%
New York City Housing Development Corp.
6.42% due 11/01/2027		160,000		164,325
Oregon - 0.01%
State of Oregon
5.892% due 06/01/2027		60,000		61,833

TOTAL MUNICIPAL BONDS (Cost $788,262)		$		798,074


COLLATERALIZED MORTGAGE
OBLIGATIONS - 5.54%
Banc of America Commercial Mortgage, Inc.,
Series 2003-1, Class A1
3.878% due 09/11/2036		88,185		84,939
Banc of America Commercial Mortgage, Inc.,
Series 2003-1, Class A2
4.648% due 09/11/2036		796,000		766,672
Banc of America Mortgage Securities,
Series 2003-L, Class 2A2
4.2611% due 01/25/2034 (b)		533,994		523,884
Banc of America Mortgage Securities,
Series 2004-A, Class 2A2
4.1179% due 02/25/2034 (b)		291,527		285,639
Banc of America Mortgage Securities,
Series 2004-D, Class 2A2
4.198% due 05/25/2034 (b)		131,650		128,933
Banc of America Mortgage Securities,
Series 2004-H, Class 2A2
4.7489% due 09/25/2034 (b)		302,250		298,573
Banc of America Mortgage Securities,
Series 2004-I, Class 3A2
4.9159% due 10/25/2034 (b)		148,550		146,380
Banc of America Mortgage Securities,
Series 2005-A, Class 2A2
4.459% due 02/25/2035 (b)		1,101,688		1,078,220
Banc of America Mortgage Securities,
Series 2005-J, Class 2A1
5.0996% due 11/25/2035 (b)		530,611		526,174
Banc of America Mortgage Securities,
Series 2005-J, Class 3A1
5.2714% due 11/25/2035 (b)		257,684		254,198
Bear Stearns Commercial Mortgage Securities,
Series 1998-C1, Class A2
6.44% due 06/16/2030		100,000		101,639
Bear Stearns Commercial Mortgage Securities,
Series 2005-PW10, Class A1
5.085% due 12/11/2040		947,675		943,662

The accompanying notes are an integral part of the financial statements. 381

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Bear Stearns Commercial Mortgage Securities,
Series 2005-PWR8, Class A4
4.674% due 06/11/2041	$	578,000	$	546,028
Bear Stearns Commercial Mortgage Securities,
Series 2005-PWR9, Class A1
4.498% due 09/15/2042		145,323		142,927
Bear Stearns Commercial Mortgage Securities,
Series 2005-PWR9, Class AAB
4.804% due 09/11/2042		462,000		448,111
Bear Stearns Commercial Mortgage Securities,
Series 2005-T18, Class A1
4.274% due 02/13/2042 (b)		499,519		489,656
Bear Stearns Commercial Mortgage Securities,
Series 2005-T20, Class A1
4.94% due 10/12/2042		40,628		40,323
Bear Stearns Commercial Mortgage Securities,
Series 2006-PW12, Class A1
5.546% due 09/11/2038 (b)		206,392		207,860
Bear Stearns Commercial Mortgage Securities,
Series 2006-PW12, Class A4
5.8955% due 09/11/2038 (b)		1,400,000		1,432,171
Bear Stearns Commercial Mortgage Securities,
Series 2002-TOP8, Class A2
4.83% due 08/15/2038		320,000		311,468
Citigroup Mortgage Loan Trust, Inc.
4.70% due 02/25/2036		926,924		909,610
Citigroup Mortgage Loan Trust, Inc.,
Series 2006-AR2, Class 1AB
5.591% due 03/25/2036		500,703		503,561
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2005-CD1, Class A4
5.3997% due 07/15/2044 (b)		950,000		938,577
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2005-CD1, Class AJ
5.3997% due 07/15/2044 (b)		75,000		73,759
Commercial Mortgage Pass Through Certificates,
Series 2005-LP5, Class A1
4.235% due 05/10/2043		454,369		446,462
CS First Boston Mortgage Securities Corp.,
Series 2005-C1, Class A2
4.609% due 02/15/2038		149,000		146,065
DLJ Commercial Mortgage Corp.,
Series 1999-CG2,Class A1B
7.30% due 06/10/2032		629,000		657,720
Federal Home Loan Mortgage Corp. Stated Final,
Series 2004-SF4, Class B
2.37% due 12/15/2009		86,732		84,298
Federal Home Loan Mortgage Corp. Stated Final,
Series 2004-SF4, Class C
3.32% due 12/15/2011		64,000		60,965
Federal Home Loan Mortgage Corp. Strips, Series
1998-199, Class PO
zero coupon PO due 08/01/2028		12,549		10,104
Federal Home Loan Mortgage Corp., Series
1993-1633, Class PL
6.50% due 03/15/2023		56,334		56,284

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp., Series
1994-1671, Class G
6.50% due 08/15/2023	$	10,053	$	10,054
Federal Home Loan Mortgage Corp., Series
2003-2586, Class NJ
4.50% due 08/15/2016		395,276		386,778
Federal Home Loan Mortgage Corp., Series
2003-2614, Class IH
4.50% IO due 05/15/2016		267,000		31,849
Federal Home Loan Mortgage Corp., Series
2003-2627, Class IE
4.50% IO due 04/15/2018		92,908		9,284
Federal Home Loan Mortgage Corp., Series
2003-2631, Class KI
4.50% IO due 01/15/2015		254,158		15,162
Federal Home Loan Mortgage Corp., Series
2003-2631, Class LI
4.50% IO due 06/15/2011		78,013		1,570
Federal Home Loan Mortgage Corp., Series
2003-2631, Class MV
4.00% due 01/15/2022		191,000		189,005
Federal Home Loan Mortgage Corp., Series
2003-2631, Class PC
4.50% due 03/15/2016		1,224,000		1,192,762
Federal Home Loan Mortgage Corp., Series
2003-2681, Class PC
5.00% due 01/15/2019		255,000		252,530
Federal Home Loan Mortgage Corp., Series
2003-2686, Class JG
5.50% due 04/15/2028		847,000		845,508
Federal Home Loan Mortgage Corp., Series
2003-41, Class YV
5.50% due 04/25/2014		301,377		301,945
Federal Home Loan Mortgage Corp., Series
2004-2844, Class PQ
5.00% due 05/15/2023		149,000		148,410
Federal Home Loan Mortgage Corp., Series
2004-2872, Class YB
5.00% due 06/15/2023		318,000		316,099
Federal Home Loan Mortgage Corp., Series
2004-2882, Class YB
5.00% due 10/15/2027		400,000		393,691
Federal Home Loan Mortgage Corp., Series
2004-2890, Class PB
5.00% due 11/15/2027		798,000		785,412
Federal Home Loan Mortgage Corp., Series
2005-2934, Class NB
5.00% due 01/15/2028		106,000		104,179
Federal Home Loan Mortgage Corp., Series
2005-46, Class CN
5.00% due 01/25/2020		313,000		309,407
Federal Home Loan Mortgage Corp., Series
2005-R003, Class VA
5.50% due 08/15/2016		541,564		541,157
Federal Home Loan Mortgage Corp., Series
2006-3123, Class VB
6.00% due 09/15/2013		276,923		282,548

The accompanying notes are an integral part of the financial statements. 382

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp., Series
2006-3152, Class DA
6.00% due 09/15/2025	$	200,000	$	202,586
Federal Home Loan Mortgage Corp., Series
2006-3162, Class OD
6.00% due 06/15/2035		375,000		378,500
Federal Home Loan Mortgage Corp., Series
2006-3177, Class PA
6.00% due 12/15/2026		415,738		420,986
Federal Home Loan Mortgage Corp., Series
2006-3195, Class PN
6.50% due 08/15/2030		1,219,597		1,248,927
Federal Home Loan Mortgage Corp., Series
2006-R007, Class VA
6.00% due 09/15/2016		1,276,868		1,299,742
Federal National Mortgage Association Interest
Strip, Series 2002-319, Class 2
6.50% IO due 02/01/2032		47,206		11,036
Federal National Mortgage Association, Series
1993-8, Class L
9.00% due 01/25/2008		5,058		5,122
Federal National Mortgage Association, Series
2002-43, Class A
6.00% due 06/25/2016		624		623
Federal National Mortgage Association, Series
2002-74, Class PJ
5.00% due 03/25/2015		615,000		610,377
Federal National Mortgage Association, Series
2002-84, Class VA
5.50% due 11/25/2013		219,344		219,752
Federal National Mortgage Association, Series
2003-40, Class NI
5.50% IO due 11/25/2028		81,693		5,840
Federal National Mortgage Association, Series
2003-92, Class NM
3.50% due 04/25/2013		455,157		445,701
Federal National Mortgage Association, Series
2004-21, Class AC
4.00% due 05/25/2016		97,463		94,668
Federal National Mortgage Association, Series
2006-3136, Class PB
6.00% due 01/15/2030		411,000		418,070
Federal National Mortgage Association, Series
2006-35, Class GK
6.00% due 08/25/2032		445,705		451,507
Federal National Mortgage Association, Series
2006-49, Class CA
6.00% due 02/25/2031		430,378		436,032
GE Capital Commercial Mortgage Corp.,
Series 2001-1, Class A2
6.531% due 05/15/2033		465,000		486,610
GE Capital Commercial Mortgage Corp.,
Series 2005-C4, Class A1
5.082% due 11/10/2045		525,732		523,761
Government National Mortgage Association, Series
1997-16, Class PL
6.50% due 10/20/2027		322,000		331,078

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Government National Mortgage Association, Series
1998-12, Class Z
6.50% due 05/20/2028	$	62,143	$	63,485
Government National Mortgage Association, Series
1998-6, Class EA
zero coupon PO due 03/16/2028		46,659		38,347
Government National Mortgage Association, Series
1999-15, Class PB
5.00% due 08/16/2028		13,823		13,782
Government National Mortgage Association, Series
2001-48, Class PC
6.50% due 10/20/2031		410,870		421,508
Government National Mortgage Association, Series
2003-3, Class LM
5.50% due 02/20/2032		401,000		399,289
Government National Mortgage Association, Series
2003-49, Class C
4.485% due 10/16/2033 (b)		67,000		62,013
Government National Mortgage Association, Series
2003-70, Class TD
5.50% due 10/20/2030		908,000		904,938
Government National Mortgage Association, Series
2004-43, Class D
4.994% due 03/16/2030 (b)		56,000		54,270
Government National Mortgage Association, Series
2004-44, Class PC
5.50% due 05/20/2031		928,000		932,539
Government National Mortgage Association, Series
2005-94, Class PB
5.50% due 12/20/2035		135,000		131,485
Greenwich Capital Commercial Funding Corp.,
Series 2004-GG1, Class A2
3.835% due 06/10/2036		134,156		132,764
Greenwich Capital Commercial Funding Corp.,
Series 2005-GG3, Class AAB
4.619% due 08/10/2042 (b)		146,000		140,386
GSR Mortgage Loan Trust,
Series 2005-AR6, Class 3A1
4.5607% due 09/25/2035 (b)		1,154,474		1,131,511

JP Morgan Chase Commercial Mortgage Securities Corp.,
Series 2001-CIB2, Class A2
6.244% due 04/15/2035		1,269,946		1,289,001

JP Morgan Chase Commercial Mortgage Securities Corp.,
Series 2001-CIBC, Class A3
6.26% due 03/15/2033		283,000		292,304

JP Morgan Chase Commercial Mortgage Securities Corp.,
Series 2005-LDP4, Class A1
4.613% due 10/15/2042		41,193		40,681

JP Morgan Chase Commercial Mortgage Securities Corp.,
Series 2005-LDP4, Class ASB
4.824% due 10/15/2042 (b)		621,000		600,822

The accompanying notes are an integral part of the financial statements. 383

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)

JP Morgan Chase Commercial Mortgage Securities Corp.,
Series 2006-CB14, Class A4
5.481% due 12/12/2044 (b)	$	1,740,000	$	1,738,980
LB-UBS Commercial Mortgage Trust,
Series 2003-C8, Class A1
3.636% due 11/15/2027		822,613		801,504
LB-UBS Commercial Mortgage Trust,
Series 2004-C2, Class A2
3.246% due 03/15/2029		633,000		604,799
LB-UBS Commercial Mortgage Trust,
Series 2004-C4, Class A2
4.567% due 06/15/2029 (b)		457,000		450,309
LB-UBS Commercial Mortgage Trust,
Series 2005-C1, Class A4
4.742% due 02/15/2030		133,000		126,856
LB-UBS Commercial Mortgage Trust,
Series 2006-C1, Class A1
5.018% due 02/15/2031		242,214		241,240
LB-UBS Commercial Mortgage Trust,
Series 2006-C1, Class A4
5.156% due 02/15/2031		2,017,500		1,970,767
Morgan Stanley Dean Witter
Capita I, Series 2002-TOP7, Class A1
5.38% due 01/15/2039		66,278		66,478
Morgan Stanley Dean Witter
Capital I, Series 2002-TOP7, Class A2
5.98% due 01/15/2039		366,000		376,827
Morgan Stanley Capital I, Series 2006-T23, Class A1
5.682% due 08/12/2041		235,000		237,640
Morgan Stanley Capital I, Series 2006-T23, Class A4
5.983% due 08/12/2041		485,000		500,438
Vendee Mortgage Trust, Series 1996-3, Class 4
9.6146% due 03/15/2025 (b)		17,109		18,209
Washington Mutual, Inc., Series 2005-AR3, Class
A2
4.6429% due 03/25/2035 (b)		494,820		485,030
Washington Mutual, Inc., Series 2004-AR1, Class A
4.229% due 03/25/2034 (b)		225,947		221,894
Wells Fargo Mortgage Backed Securities Trust,
Series 2003-O, Class 5A1
4.811% due 01/25/2034 (b)		680,791		662,520
Wells Fargo Mortgage Backed Securities Trust,
Series 2005-AR2, Class 2A2
4.5459% due 03/25/2035 (b)		496,775		489,256
Wells Fargo Mortgage Backed Securities Trust,
Series 2005-AR2, Class 3A1
4.941% due 03/25/2035 (b)		293,802		288,884

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $42,296,081)		$		42,283,886


ASSET BACKED SECURITIES - 2.27%
AmeriCredit Automobile Receivables Trust,
Series 2006-RM, Class A3
5.53% due 01/06/2014		795,000		803,214

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
BankBoston Home Equity Loan Trust,
Series 1998-2, Class A6
6.64% due 12/25/2028	$	70,925	$	71,298
Bay View Auto Trust, Series 2005-3, Class A4
5.01% due 06/25/2014		342,000		339,748
Cabela's Master Credit Card Trust, Series 2005-1A,
Class A1
4.97% due 10/15/2013		140,000		139,497
Capital Auto Receivables Asset Trust,
Series 2004-1, Class A4
2.64% due 11/17/2008		191,000		187,231
Capital Auto Receivables Asset Trust,
Series 2004-1, Class CTFS
2.84% due 09/15/2010		149,000		145,601
Capital Auto Receivables Asset Trust,
Series 2006-SN1A, Class B
5.50% due 04/20/2010		275,000		274,939
Capital Auto Receivables Asset Trust,
Series 2006-SN1A, Class A4A
5.46% due 03/20/2010		1,575,000		1,574,941
Capital Auto Receivables Asset Trust,
Series 2006-SN1A, Class A4B
5.435% due 03/20/2010 (b)		325,000		325,000
Capital One Multi-Asset Execution Trust,
Series 2004-A8, Class A8
5.46% due 08/15/2014 (b)		624,000		627,103
Capital One Prime Auto Receivables Trust,
Series 2006-1, Class A4
5.01% due 11/15/2011		260,000		259,481
Chase Funding Mortgage Loan
Asset-Backed Certificates,
Series 2002-2, Class 1M1
5.599% due 09/25/2031		33,273		33,012
Chase Funding Mortgage Loan
Asset-Backed Certificates,
Series 2002-4, Class 2A1
5.6944% due 10/25/2032 (b)		21,613		21,657
Chase Funding Mortgage Loan
Asset-Backed Certificates,
Series 2003-3, Class 1A6
3.717% due 10/25/2014		246,608		234,949
CNH Equipment Trust, Series 2003-B, Class A4B
3.38% due 02/15/2011		250,000		245,998
Credit-Based Asset Servicing and Securitization,
Series 2005-CB5, Class AF2
4.831% due 08/25/2035		293,000		289,032
Credit-Based Asset Servicing and Securitization,
Series 2006-CB3, Class AV3
5.4944% due 03/25/2036 (b)		865,000		865,397
Detroit Edison Securitization Funding LLC,
Series 2001-1, Class A5
6.42% due 03/01/2015		450,000		475,817
GE Equipment Small Ticket LLC,
Series 2005-1A, Class A4
4.51% due 12/22/2014		337,000		331,446
GS Auto Loan Trust, Series 2004-1, Class A3
2.13% due 11/15/2007		8,393		8,368

The accompanying notes are an integral part of the financial statements. 384

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Harley-Davidson Motorcycle Trust,
Series 2003-3, Class A2
2.76% due 05/15/2011	$	70,851	$	69,682
Harley-Davidson Motorcycle Trust,
Series 2003-4, Class A2
2.69% due 04/15/2011		84,535		82,433
Hertz Vehicle Financing LLC,
Series 2004-1A, Class A2
2.38% due 05/25/2008		265,000		261,134
Honda Auto Receivables Owner Trust,
Series 2003-5, Class A4
2.96% due 04/20/2009		194,000		190,710
Household Affinity Credit Card Master Note Trust I,
Series 2003-1, Class A
5.45% due 02/15/2010 (b)		106,000		106,180
Household Automotive Trust,
Series 2006-2, Class A4
5.67% due 05/17/2013		220,000		225,749
Hyundai Auto Receivables Trust,
Series 2003-A, Class A4
3.02% due 10/15/2010		149,953		146,979
Hyundai Auto Receivables Trust,
Series 2006-A, Class A4
5.26% due 06/25/2014		515,000		516,851
John Deere Owner Trust, Series 2005-A, Class A4
4.16% due 05/15/2012		50,000		48,947
John Deere Owner Trust, Series 2006-A, Class A4
5.39% due 06/17/2013		250,000		250,274
M&I Auto Loan Trust, Series 2005-1, Class A4
4.86% due 03/21/2011		140,000		139,094
Marriott Vacation Club Owner Trust,
Series 2006-1A, Class A
5.737% due 04/20/2028		422,956		427,214
Marriott Vacation Club Owner Trust,
Series 2006-1A, Class B
5.827% due 04/20/2028		35,617		35,976
MBNA Credit Card Master Note Trust,
Series 2005-A3, Class A3
4.10% due 10/15/2012		1,150,000		1,112,450
MBNA Master Credit Card Trust USA,
Series 2000-D, Class A
5.53% due 09/15/2009 (b)		225,000		225,307
Morgan Stanley ABS Capital I,
Series 2006-HE4, Class A3
5.23% due 06/25/2036		475,000		476,155
Navistar Financial Corp., Owner Trust,
Series 2003-B, Class A3
5.53% due 04/15/2008 (b)		65,619		65,655
New Century Home Equity Loan
Trust, Series 2005-A, Class A6
4.954% due 08/25/2035		895,000		863,397
New Century Home Equity Loan
Trust, Series 2005-A, Class M2
5.344% due 08/25/2035		215,000		209,612
Nissan Auto Receivables Owner Trust,
Series 2004-A, Class A4
2.76% due 07/15/2009		316,000		308,512

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Onyx Acceptance Owner
Trust, Series 2005-A, ClassA4
3.91% due 09/15/2011	$	250,000	$	244,740
Peco Energy Transition Trust,
Series 2001-A, Class A1
6.52% due 12/31/2010		447,000		467,131
PP&L Transition Bond Company LLC,
Series 1999-1, Class A8
7.15% due 06/25/2009		111,000		114,518
PSE&G Transition Funding LLC,
Series 2001-1, Class A6
6.61% due 06/15/2015		281,000		300,301
Reliant Energy Transport Bond Company,
Series 2001-1, Class A4
5.63% due 09/15/2015		334,000		340,566
Residential Asset Mortgage Products, Inc.,
Series 2003-RZ2, Class A1
3.60% due 04/25/2033		39,062		38,080
Residential Asset Mortgage Products, Inc.,
Series 2003-RZ4, Class M1
5.27% due 10/25/2033		50,000		49,139
Residential Asset Mortgage Products, Inc.,
Series 2004-RZ3, Class AI2
3.42% due 10/25/2027 (b)		9,193		9,155
Residential Asset Mortgage Products, Inc.,
Series 2005-RZ4, Class A3
5.7244% due 12/25/2034 (b)		253,000		255,399
Residential Asset Securities Corp,
Series 2005-KS10, Class 1A2
5.5744% due 11/25/2035 (b)		224,000		224,391
Residential Asset Securities Corp,
Series 2006-KS3, Class AI3
5.4944% due 04/25/2036 (b)		600,000		600,990
Sovereign Bank Home Equity Loan Trust,
Series 2000-1, Class A6
7.25% due 02/25/2015		8,179		8,363
Susquehanna Auto Lease Trust,
Series 2006-1, Class A3
5.21% due 03/16/2009		200,000		199,906
Triad Auto Receivables Owner Trust,
Series 2006-B, Class A3
5.41% due 08/12/2011		300,000		301,594
Triad Auto Receivables Owner Trust,
Series 2006-B, Class A4
5.52% due 11/12/2012		500,000		506,551
USAA Auto Owner Trust, Series 2005-2, Class A4
4.17% due 02/15/2011		150,000		147,176
Volkswagen Auto Lease Trust,
Series 2006-A, Class A4
5.54% due 04/20/2011		245,000		247,527
Wachovia Auto Owner Trust,
Series 2006-A, Class A4
5.38% due 03/20/2013		225,000		227,074

TOTAL ASSET BACKED SECURITIES
(Cost $17,253,484)			$	17,298,641

The accompanying notes are an integral part of the financial statements. 385

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or
		Principal
		Amount		Value


SUPRANATIONAL OBLIGATIONS - 0.03%
Supranational - 0.03%
Eurofima, EMTN
6.50% due 08/22/2011	AUD	325,000	$	251,592

TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $248,457)			$	251,592


SHORT TERM INVESTMENTS - 14.92%
Malaysia Government Bond, Series 182
0.01% due 01/12/2007	MYR	1,182,000 $		316,774
State Street Navigator Securities
Lending Prime Portfolio (c)	$	83,287,899		83,287,899
T. Rowe Price Reserve Investment Fund (c)		30,330,726		30,330,726

TOTAL SHORT TERM INVESTMENTS
(Cost $113,934,206)			$	113,935,399


REPURCHASE AGREEMENTS - 3.51%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$26,774,937 on 9/1/2006,
collateralized by $27,380,000
Federal Home Loan Mortgage
Corp., 0.00% due 09/15/2006
(valued at $27,311,550, including
interest) (c)***	$	26,772,000	$	26,772,000

TOTAL REPURCHASE AGREEMENTS
(Cost $26,772,000)			$	26,772,000

Total Investments (Spectrum Income Fund)
(Cost $834,918,505) - 110.87%			$	846,722,617
Liabilities in Excess of Other Assets - (10.87)%				(82,991,645)

TOTAL NET ASSETS - 100.00%			$	763,730,972



Strategic Bond Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 0.18%
Cellular Communications - 0.18%
American Tower Corp., Class A *		15,666 $		561,783
Household Products - 0.00%
Home Interiors *		674,617		6,746

TOTAL COMMON STOCKS (Cost $551,187)		$		568,529


PREFERRED STOCKS - 0.02%
Crude Petroleum & Natural Gas - 0.02%
Chesapeake Energy Corp. * (a)		266		71,421

TOTAL PREFERRED STOCKS (Cost $66,834)		$		71,421

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


WARRANTS - 0.01%
Government of Mexico - 0.01%
United Mexican States
(Expiration Date 10/10/2006; strike
price $25.00)		5,000	$	19,000

TOTAL WARRANTS (Cost $12,500)			$	19,000


U.S. TREASURY OBLIGATIONS - 4.50%
Treasury Inflation Protected
Securities (d) - 0.41%
2.00% due 01/15/2016 to
01/15/2026 (a)	$	1,328,886		1,288,008
U.S. Treasury Bonds - 1.05%
4.50% due 02/15/2036 (a)		2,570,000		2,418,812
6.125% due 08/15/2029 (a)****		440,000		511,500
6.25% due 08/15/2023 (a)		290,000		332,526

				3,262,838
U.S. Treasury Notes - 3.04%
4.00% due 02/15/2014 (a)		1,610,000		1,536,167
4.25% due 11/15/2014 (a)		1,425,000		1,378,354
5.125% due 05/15/2016 (a)		6,370,000		6,550,895

				9,465,416

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $13,765,502)			$	14,016,262


U.S. GOVERNMENT AGENCY OBLIGATIONS - 31.55%
Federal Home Loan Mortgage Corp. - 0.10%
5.125% due 04/18/2011		280,000		280,998
8.00% due 05/01/2010		8,606		8,795
8.50% due 05/01/2008		4,416		4,486

				294,279
Federal National Mortgage
Association - 26.66%
5.00% TBA **		17,400,000		16,789,872
5.50% TBA **		43,000,000		42,354,374
5.625% due 05/19/2011		1,220,000		1,232,267
5.916% due 11/01/2035		377,983		390,374
6.00% TBA **		16,000,000		16,003,471
6.50% due 10/01/2032		793,623		808,183
6.50% TBA **		5,300,000		5,379,500
7.50% due 07/01/2030 to 02/01/2031		54,802		56,691
8.00% due 07/01/2027 to 08/01/2027		50,788		53,832
8.80% due 01/25/2019		34,237		36,584
10.40% due 04/25/2019		11,658		12,534

				83,117,682
Government National Mortgage
Association - 4.79%
5.00% TBA **		5,000,000		4,842,190
6.00% TBA **		10,000,000		10,081,250
7.50% due 04/15/2022 to 10/15/2027		21,227		22,155

				14,945,595

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $97,815,228)			$	98,357,556

The accompanying notes are an integral part of the financial statements. 386

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS - 10.62%
Brazil - 3.68%
Federative Republic of Brazil
8.00% due 01/15/2018 (a)	$	1,015,000	$	1,114,470
8.25% due 01/20/2034 ***		3,500,000		4,025,000
8.75% due 02/04/2025		815,000		968,628
11.00% due 08/17/2040 (a)		4,115,000		5,376,247

				11,484,345
Colombia - 0.21%
Republic of Colombia
8.125% due 05/21/2024		195,000		214,500
10.00% due 01/23/2012 (a)		140,000		162,960
10.75% due 01/15/2013		235,000		287,170

				664,630
Italy - 0.14%
Republic of Italy
5.804% due 10/25/2032		440,000		443,276
Mexico - 1.32%
Government of Mexico
5.625% due 01/15/2017 (a)		1,424,000		1,404,064
5.875% due 01/15/2014 (a)		675,000		686,813
6.375% due 01/16/2013 (a)		616,000		640,640
7.50% due 04/08/2033		624,000		722,280
8.125% due 12/30/2019		440,000		530,200
10.375% due 02/17/2009		104,000		115,648

				4,099,645
Panama - 0.74%
Republic of Panama
6.70% due 01/26/2036		148,000		145,040
7.25% due 03/15/2015		150,000		158,250
9.375% due 04/01/2029 ***		1,574,000		1,995,045

				2,298,335
Russia - 4.53%
Russian Federation, Series REGS
5.00% due 03/31/2030		12,681,000		14,112,685

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $31,698,327)			$	33,102,916


CORPORATE BONDS - 46.17%
Advertising - 0.39%
Lamar Media Corp.
6.625% due 08/15/2015		150,000		140,625
R.H. Donnelley Corp., Series A-1
6.875% due 01/15/2013		100,000		89,750
R.H. Donnelley Corp., Series A-2
6.875% due 01/15/2013		175,000		157,062
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016		500,000		492,500
R.H. Donnelley Finance Corp., Series I
10.875% due 12/15/2012		300,000		328,500

				1,208,437
Aerospace - 0.20%
Alliant Techsystems, Inc.
6.75% due 04/01/2016		85,000		82,662

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Aerospace (continued)
DRS Technologies, Inc.
6.875% due 11/01/2013	$	400,000	$	388,000
7.625% due 02/01/2018		25,000		25,000
TransDigm, Inc.
7.75% due 07/15/2014		130,000		129,025

				624,687
Air Travel - 0.05%
Continental Airlines, Inc.
6.541% due 09/15/2008		28,867		27,598
Continental Airlines, Inc., Series D
7.568% due 12/01/2006		140,000		139,779

				167,377
Apparel & Textiles - 0.16%
Levi Strauss & Company
9.75% due 01/15/2015		475,000		491,625
Auto Parts - 0.17%
Commercial Vehicle Group, Inc.
8.00% due 07/01/2013		75,000		71,437
Keystone Automotive Operations
9.75% due 11/01/2013		150,000		142,500
TRW Automotive, Inc.
9.375% due 02/15/2013		70,000		74,725
Visteon Corp.
7.00% due 03/10/2014		70,000		62,125
8.25% due 08/01/2010 (a)		175,000		171,500

				522,287
Auto Services - 0.24%
Hertz Corp., Class A
8.875% due 01/01/2014		250,000		259,375
10.50% due 01/01/2016 (a)		260,000		280,150
Penhall International Corp.
12.00% due 08/01/2014		190,000		193,800

				733,325
Automobiles - 1.82%
DaimlerChrysler N.A. Holding Corp.
4.05% due 06/04/2008		910,000		887,196
Ford Motor Company
6.625% due 10/01/2028		150,000		112,500
7.45% due 07/16/2031 (a)		1,235,000		969,475
8.875% due 01/15/2022		90,000		76,500
8.90% due 01/15/2032		100,000		89,750
General Motors Corp.
8.25% due 07/15/2023		100,000		83,000
8.375% due 07/15/2033 (a)		4,125,000		3,454,688

				5,673,109
Banking - 2.69%
Bank of America Corp.
7.40% due 01/15/2011 ***		1,160,000		1,251,833
Glitnir Banki HF
6.33% due 07/28/2011		440,000		445,248
6.693% due 06/15/2016 (b)		620,000		631,034
Kaupthing Bank
5.758% due 04/12/2011 ***		1,080,000		1,078,329

The accompanying notes are an integral part of the financial statements. 387

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Banking (continued)
Kaupthing Bank (continued)
7.125% due 05/19/2016	$	230,000	$	236,019
Resona Preferred Global Securities (Cayman), Ltd.
7.191% due 12/29/2049 (b)		440,000		456,390
Standard Chartered Bank
8.00% due 05/30/2031		1,075,000		1,321,162
Wachovia Corp.
5.25% due 08/01/2014		1,740,000		1,708,228
Wells Fargo Company
5.30% due 08/26/2011		1,250,000		1,251,837

				8,380,080
Broadcasting - 0.50%
Barrington Broadcasting
10.50% due 08/15/2014		40,000		39,200
CMP Susquehanna Corp.
9.875% due 05/15/2014		35,000		32,637
CSC Holdings, Inc.
7.00% due 04/15/2012		250,000		245,625
7.625% due 07/15/2018		25,000		25,219
8.125% due 08/15/2009		325,000		335,562
CSC Holdings, Inc., Series B
8.125% due 07/15/2009		25,000		25,844
Hughes Network Systems LLC/HNS Finance Corp.
9.50% due 04/15/2014		110,000		111,650
News America, Inc.
5.30% due 12/15/2014 (a)		605,000		588,917
XM Satellite Radio Holdings, Inc.
9.75% due 05/01/2014		80,000		75,200
9.9888% due 05/01/2013 (b)		80,000		74,600

				1,554,454
Building Materials & Construction - 0.15%
Associated Materials, Inc.
zero coupon, Step up to 11.25% on
03/01/2009 due 03/01/2014		575,000		313,375
NTK Holdings, Inc.
zero coupon, Step up to 10.75% on
09/01/2009 due 03/01/2014		240,000		160,800

				474,175
Business Services - 0.66%
Activant Solutions, Inc.
9.50% due 05/01/2016		130,000		121,875
Affinion Group, Inc.
10.125% due 10/15/2013		245,000		254,187
Electronic Data Systems Corp.
7.125% due 10/15/2009		720,000		750,661
Invensys PLC
9.875% due 03/15/2011		114,000		123,120
Sungard Data Systems, Inc.
9.125% due 08/15/2013		275,000		283,938
10.25% due 08/15/2015		60,000		61,275
Xerox Corp.
6.40% due 03/15/2016		475,000		470,296

				2,065,352

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cable and Television - 1.84%
Charter Communications Holdings I LLC
11.00% due 10/01/2015	$	250,000	$	221,875
11.75 due 05/15/2014		75,000		51,000
13.50% due 01/15/2014		95,000		70,063
Charter Communications Holdings II LLC/Charter
Communications Holdings II Capital Corp.
10.25% due 09/15/2010		220,000		222,750
Charter Communications Holdings LLC
8.625% due 04/01/2009 (a)		60,000		54,750
10.75% due 10/01/2009		50,000		45,750
Charter Communications Holdings LLC/Charter
Communications Holdings Capital Corp.
9.625% due 11/15/2009		80,000		72,800
Charter Communications Operating LLC
8.375% due 04/30/2014		225,000		227,250
Comcast Corp.
6.50% due 01/15/2015		460,000		474,871
6.50% due 01/15/2017		230,000		237,661
DirecTV Holdings LLC
6.375% due 06/15/2015		285,000		266,475
Echostar DBS Corp.
6.625% due 10/01/2014		825,000		793,031
7.125% due 02/01/2016		110,000		107,112
Kabel Deutschland GMBH
10.625% due 07/01/2014		100,000		107,000
Lodgenet Entertainment Corp.
9.50% due 06/15/2013		315,000		337,837
Rainbow National Services LLC
8.75% due 09/01/2012		40,000		42,200
10.375% due 09/01/2014		25,000		27,844
Rogers Cable, Inc.
6.25% due 06/15/2013		25,000		24,344
8.75% due 05/01/2032		350,000		397,250
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		240,000		243,000
Time Warner Entertainment Company, LP
8.375% due 07/15/2033		430,000		493,126
Time Warner, Inc.
7.625% due 04/15/2031		955,000		1,034,187
Videotron Ltee
6.375% due 12/15/2015		200,000		187,250

				5,739,426
Cellular Communications - 0.61%
Alamosa Delaware, Inc.
11.00% due 07/31/2010		125,000		136,562
American Tower Corp.
7.125% due 10/15/2012		250,000		253,125
AT&T Broadband Corp.
8.375% due 03/15/2013		785,000		889,810
Rogers Wireless, Inc.
7.25% due 12/15/2012		30,000		30,938
8.00% due 12/15/2012		20,000		20,900
Rural Cellular Corp.
9.875% due 02/01/2010		290,000		299,425

The accompanying notes are an integral part of the financial statements. 388

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cellular Communications (continued)
UbiquiTel Operating Company
9.875% due 03/01/2011	$	250,000	$	271,875

				1,902,635

Chemicals - 0.34%
Arco Chemical Company
9.80% due 02/01/2020		75,000		85,687
Equistar Chemicals LP
10.625% due 05/01/2011		200,000		215,000
Huntsman International LLC
9.875% due 03/01/2009 (a)		172,000		178,880
IMC Global, Inc.
10.875% due 08/01/2013		25,000		28,000
Lyondell Chemical Company
11.125% due 07/15/2012		225,000		245,250
Methanex Corp.
8.75% due 08/15/2012		110,000		116,875
Westlake Chemical Corp.
6.625% due 01/15/2016		200,000		190,000

				1,059,692

Coal - 0.04%
International Coal Group, Inc.
10.25% due 07/15/2014		110,000		113,575
Commercial Services - 0.07%
DI Finance/DynCorp International LLC, Series B
9.50% due 02/15/2013		210,000		216,825
Computers & Business Equipment - 0.03%
Seagate Technology Holdings
8.00% due 05/15/2009		80,000		82,200
Construction Materials - 0.08%
Nortek, Inc.
8.50% due 09/01/2014		270,000		251,100
Containers & Glass - 0.42%
Graham Packaging Company, Inc.
9.875% due 10/15/2014 (a)		215,000		206,937
Graphic Packaging International Corp.
8.50% due 08/15/2011		400,000		406,000
Owens-Brockway Glass Container, Inc.
7.75% due 05/15/2011		200,000		204,500
8.25% due 05/15/2013		50,000		50,625
Owens-Illinois, Inc.
7.35% due 05/15/2008		325,000		325,000
Plastipak Holdings, Inc.
8.50% due 12/15/2015		95,000		94,525
Radnor Holdings Corp.
11.00% due 03/15/2010		125,000		30,000

				1,317,587

Cosmetics & Toiletries - 0.04%
Playtex Products, Inc.
8.00% due 03/01/2011		110,000		114,400
Crude Petroleum & Natural Gas - 1.55%
Anadarko Finance Company, Series B
7.50% due 05/01/2031		730,000		824,880

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas
(continued)
Chaparral Energy, Inc.
8.50% due 12/01/2015	$	350,000	$	352,625
Chesapeake Energy Corp.
6.25% due 01/15/2018		325,000		299,813
6.50% due 08/15/2017		100,000		92,750
7.00% due 08/15/2014		200,000		198,000
Conoco, Inc.
6.95% due 04/15/2029		1,250,000		1,421,110
Mariner Energy, Inc.
7.50% due 04/15/2013		80,000		77,800
PetroHawk Energy Corp.
9.125% due 07/15/2013		110,000		111,925
Plains Exploration & Production Company
7.125% due 06/15/2014		250,000		256,250
Pogo Producing Company
6.875% due 10/01/2017		200,000		190,500
7.875% due 05/01/2013		20,000		20,400
Quicksilver Resources, Inc.
7.125% due 04/01/2016		250,000		238,750
XTO Energy, Inc.
6.25% due 04/15/2013		730,000		750,083

				4,834,886
Domestic Oil - 0.70%
Exco Resources, Inc.
7.25% due 01/15/2011		425,000		413,313
Forest Oil Corp.
8.00% due 12/15/2011		325,000		335,562
Magnum Hunter Resources, Inc.
9.60% due 03/15/2012		250,000		265,000
Stone Energy Corp.
8.25% due 12/15/2011		400,000		402,000
Swift Energy Company
7.625% due 07/15/2011		400,000		404,000
Whiting Petroleum Corp.
7.00% due 02/01/2014		375,000		369,375

				2,189,250
Drugs & Health Care - 0.34%
Humana, Inc.
6.30% due 08/01/2018		1,065,000		1,067,570
Educational Services - 0.03%
Education Management LLC
8.75% due 06/01/2014		105,000		103,688
Electrical Utilities - 5.28%
AES Corp.
7.75% due 03/01/2014		3,345,000		3,445,350
8.75% due 06/15/2008		1,150,000		1,196,000
8.875% due 02/15/2011		645,000		690,150
9.375% due 09/15/2010		1,100,000		1,188,000
9.50% due 06/01/2009 (a)		880,000		941,600
Dominion Resources, Inc.
5.70% due 09/17/2012 (a)		730,000		731,347
Edison Mission Energy
7.75% due 06/15/2016		140,000		140,000

The accompanying notes are an integral part of the financial statements. 389

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Electrical Utilities (continued)
Exelon Corp.
5.625% due 06/15/2035 (a)	$	590,000	$	540,392
FirstEnergy Corp.
6.45% due 11/15/2011		430,000		445,971
7.375% due 11/15/2031		770,000		870,775
Midwest Generation LLC, Series B
8.56% due 01/02/2016		129,394		137,481
Mirant Americas Generation LLC
8.30% due 05/01/2011 ^		395,000		395,000
Orion Power Holdings, Inc.
12.00% due 05/01/2010		60,000		68,100
Pacific Gas & Electric Company
6.05% due 03/01/2034		490,000		484,302
TXU Corp., Series P
5.55% due 11/15/2014		240,000		223,778
TXU Corp., Series R
6.55% due 11/15/2034 (a)		5,300,000		4,899,087
TXU Electric Delivery Company
6.375% due 01/15/2015		50,000		51,442

				16,448,775
Electronics - 0.23%
L-3 Communications Corp.
7.625% due 06/15/2012		550,000		563,750
L-3 Communications Corp., Series B
6.375% due 10/15/2015		75,000		72,187
Spectrum Brands, Inc.
7.375% due 02/01/2015		87,000		67,425

				703,362
Energy - 0.68%
Duke Energy Company
4.20% due 10/01/2008		1,131,000		1,103,451
Inergy, LP
6.875% due 12/15/2014		200,000		189,500
NRG Energy, Inc.
7.25% due 02/01/2014		150,000		148,125
7.375% due 02/01/2016		700,000		689,500

				2,130,576
Financial Services - 10.16%
Aiful Corp.
5.00% due 08/10/2010		440,000		423,403
Credit Suisse USA, Inc.
5.50% due 08/16/2011		270,000		271,124
Dow Jones CDX HY, Series 6-T1
8.625% due 06/29/2011 ***		9,000,000		8,988,750
E*Trade Financial Corp.
7.375% due 09/15/2013		105,000		106,050
7.875% due 12/01/2015		45,000		46,800
El Paso Performance-Linked Trust
7.75% due 07/15/2011		980,000		998,375
Ford Motor Credit Company
7.00% due 10/01/2013 (a)		80,000		74,664
7.375% due 10/28/2009		430,000		421,748
7.875% due 06/15/2010		1,875,000		1,842,785
9.875% due 08/10/2011		225,000		234,250

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
Ford Motor Credit Company (continued)
10.4863% due 06/15/2011 (b)	$	836,000	$	884,068
General Motors Acceptance Corp.
4.375% due 12/10/2007		350,000		340,392
5.125% due 05/09/2008		250,000		243,069
5.85% due 01/14/2009		350,000		339,685
6.125% due 08/28/2007 (a)		330,000		327,941
6.75% due 12/01/2014 (a)		675,000		647,114
6.875% due 09/15/2011		1,600,000		1,575,806
7.25% due 03/02/2011		25,000		24,943
8.00% due 11/01/2031 (a)		3,675,000		3,714,286
Global Cash Access LLC
8.75% due 03/15/2012		250,000		261,562
Goldman Sachs Group LP
4.50% due 06/15/2010		580,000		563,610
Hexion US Finance Corp/Hexion Nova Scotia
Finance ULC
9.00% due 07/15/2014		260,000		261,300
HSBC Finance Capital Trust IX
5.911% due 11/30/2035 (b)		1,650,000		1,635,957
International Lease Finance Corp.
5.875% due 05/01/2013		815,000		830,557
iPCS, Inc.
11.50% due 05/01/2012		250,000		281,250
J.P. Morgan Chase & Company
6.625% due 03/15/2012		970,000		1,024,493
JSG Funding PLC
9.625% due 10/01/2012		225,000		234,844
Lehman Brothers Holdings, Inc.
4.50% due 07/26/2010		775,000		751,700
Morgan Stanley
4.75% due 04/01/2014		1,470,000		1,389,163
Nell AF SARL
8.375% due 08/15/2015 (a)		222,000		222,277
Residential Capital Corp.
6.00% due 02/22/2011		720,000		716,095
Shinsei Finance Cayman Ltd.
6.418% due 01/29/2049 (b)		550,000		543,156
TNK-BP Finance SA
7.50% due 07/18/2016 (a)		1,330,000		1,380,390
Ucar Finance, Inc.
10.25% due 02/15/2012		80,000		84,000

				31,685,607
Food & Beverages - 0.04%
Nutro Products, Inc.
9.23% due 10/15/2013 (b)		40,000		41,200
10.75% due 04/15/2014		90,000		94,950

				136,150
Forest Products - 0.44%
Weyerhaeuser Company
6.75% due 03/15/2012		1,300,000		1,359,565
Furniture & Fixtures - 0.16%
Norcraft Companies LP
9.00% due 11/01/2011		125,000		125,625

The accompanying notes are an integral part of the financial statements. 390

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Furniture & Fixtures (continued)
Norcraft Holdings Capital
zero coupon, Step up to 9.75% on
09/01/2008 due 09/01/2012	$	15,000	$	12,150
Sealy Mattress Company
8.25% due 06/15/2014 (a)		350,000		353,500

				491,275
Gas & Pipeline Utilities - 3.91%
Dynegy Holdings, Inc.
8.375% due 05/01/2016 ***		830,000		817,550
El Paso Corp.
7.75% due 01/15/2032 (a)		5,800,000		5,829,000
7.80% due 08/01/2031 ***		3,280,000		3,288,200
7.875% due 06/15/2012 (a)		500,000		516,250
El Paso Corp., Series MTN
7.375% due 12/15/2012 (a)		475,000		479,156
Kinder Morgan Energy Partners LP
5.00% due 12/15/2013 (a)		140,000		132,440
6.30% due 02/01/2009		100,000		101,302
6.75% due 03/15/2011		100,000		103,852
7.125% due 03/15/2012		20,000		21,092
Williams Companies, Inc.
7.625% due 07/15/2019 (a)		25,000		25,375
7.875% due 09/01/2021		375,000		381,563
8.75% due 03/15/2032		450,000		484,875

				12,180,655
Healthcare Products - 0.06%
Angiotech Pharmaceuticals, Inc.
7.75% due 04/01/2014		15,000		14,625
Leiner Health Products, Inc.
11.00% due 06/01/2012		195,000		185,250

				199,875
Healthcare Services - 0.36%
DaVita, Inc.
7.25% due 03/15/2015		420,000		411,600
Extendicare Health Services, Inc.
6.875% due 05/01/2014		25,000		26,125
9.50% due 07/01/2010		65,000		67,925
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		640,000		620,800

				1,126,450
Holdings Companies/Conglomerates - 0.02%
Ashtead Capital, Inc.
9.00% due 08/15/2016		73,000		74,460
Homebuilders - 0.15%
Beazer Homes USA, Inc.
6.875% due 07/15/2015		15,000		13,350
8.125% due 06/15/2016 (a)		150,000		143,250
K Hovnanian Enterprises, Inc.
6.25% due 01/15/2016		60,000		52,050
8.625% due 01/15/2017 (a)		280,000		273,350

				482,000

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Hotels & Restaurants - 0.13%
CCM Merger, Inc.
8.00% due 08/01/2013	$	105,000	$	100,537
El Pollo Loco, Inc.
11.75% due 11/15/2013		55,000		61,463
Park Place Entertainment Corp.
9.375% due 02/15/2007		250,000		253,125

				415,125

Industrial Machinery - 0.02%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		75,000		76,125
Insurance - 0.08%
Crum & Forster Holdings Corp.
10.375% due 06/15/2013 (a)		250,000		248,750
International Oil - 0.13%
OAO Gazprom, Series REGS
9.625% due 03/01/2013		150,000		177,090
Pemex Project Funding Master Trust
5.75% due 12/15/2015		170,000		165,410
6.625% due 06/15/2035		80,000		78,560

				421,060

Leisure Time - 0.76%
AMC Entertainment, Inc.
11.00% due 02/01/2016		285,000		309,581
Boyd Gaming Corp.
6.75% due 04/15/2014		400,000		377,000
Caesars Entertainment, Inc.
7.00% due 04/15/2013		140,000		144,513
Herbst Gaming, Inc.
8.125% due 06/01/2012		250,000		253,750
Inn of the Mountain Gods Resort & Casino
12.00% due 11/15/2010		190,000		191,900
Isle of Capri Casinos
7.00% due 03/01/2014		50,000		47,500
Las Vegas Sands Corp.
6.375% due 02/15/2015		250,000		232,500
MGM Mirage, Inc.
6.625% due 07/15/2015		150,000		141,188
Mohegan Tribal Gaming Authority
6.875% due 02/15/2015		150,000		143,250
7.125% due 08/15/2014		150,000		146,250
River Rock Entertainment Authority
9.75% due 11/01/2011		15,000		15,881
Station Casinos, Inc.
7.75% due 08/15/2016		250,000		257,813
Warner Music Group
7.375% due 04/15/2014		100,000		96,250

				2,357,376

Manufacturing - 1.66%
Jacuzzi Brands, Inc.
9.625% due 07/01/2010		105,000		111,300
Tyco International Group SA
6.00% due 11/15/2013		1,040,000		1,072,806
6.125% due 11/01/2008		890,000		902,161

The accompanying notes are an integral part of the financial statements. 391

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Manufacturing (continued)
Tyco International Group SA (continued)
6.875% due 01/15/2029	$	2,760,000	$	3,080,469

				5,166,736
Medical-Hospitals - 0.80%
Genesis Healthcare Corp.
8.00% due 10/15/2013		175,000		181,562
HCA, Inc.
6.30% due 10/01/2012		21,000		17,588
6.375% due 01/15/2015		265,000		210,675
6.50% due 02/15/2016 (a)		331,000		260,663
7.50% due 12/15/2023		25,000		19,106
7.69% due 06/15/2025		25,000		19,320
Tenet Healthcare Corp.
6.875% due 11/15/2031		1,125,000		852,187
7.375% due 02/01/2013 (a)		125,000		111,250
9.25% due 02/01/2015 (b)		200,000		188,500
9.875% due 07/01/2014		640,000		624,000

				2,484,851
Metal & Metal Products - 0.13%
Metals USA, Inc.
11.125% due 12/01/2015		195,000		214,988
Mueller Group, Inc.
10.00% due 05/01/2012		85,000		92,650
Mueller Holdings, Inc.
zero coupon, Step up to 14.75% on
04/15/2009 due 04/15/2014		65,000		57,200
PNA Group, Inc.
10.75% due 09/01/2016		30,000		30,675

				395,513
Office Furnishings & Supplies - 0.09%
Interface, Inc.
9.50% due 02/01/2014		100,000		102,750
10.375% due 02/01/2010		150,000		163,312

				266,062
Paper - 0.25%
Appleton Papers, Inc., Series B
9.75% due 06/15/2014		305,000		301,187
NewPage Corp.
11.7388% due 05/01/2012 (b)		65,000		70,200
12.00% due 05/01/2013 (a)		45,000		46,463
P.H. Glatfelter
7.125% due 05/01/2016		75,000		73,934
Smurfit Capital Funding PLC
7.50% due 11/20/2025		200,000		182,000
Verso Paper Holdings LLC and Verso Paper, Inc.
9.125% due 08/01/2014		50,000		49,750
11.375% due 08/01/2016		45,000		44,550

				768,084
Petroleum Services - 0.58%
Belden & Blake Corp.
8.75% due 07/15/2012		235,000		240,875
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015		50,000		49,750

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Petroleum Services (continued)
Dresser-Rand Group, Inc.
7.375% due 11/01/2014	$	300,000	$	288,750
Enterprise Products Operating LP
8.375% due 08/01/2066 (b)		110,000		114,672
Gaz Capital for Gazprom, Series REGS
8.625% due 04/28/2034 (a)		800,000		995,200
Grant Prideco, Inc., Series B
6.125% due 08/15/2015		75,000		71,250
Pride International, Inc.
7.375% due 07/15/2014		25,000		25,437
SESI LLC
6.875% due 06/01/2014		10,000		9,800

				1,795,734

Pharmaceuticals - 0.20%
Omnicare, Inc.
6.875% due 12/15/2015		200,000		191,250
Valeant Pharmaceuticals International
7.00% due 12/15/2011		450,000		423,000

				614,250

Photography - 2.38%
Eastman Kodak Company
3.375% due 10/15/2033 (a)***		4,210,000		4,041,600
7.25% due 11/15/2013 ***		3,500,000		3,370,661

				7,412,261

Pollution Control - 0.00%
Safety-Kleen Services, Inc.
9.25% due 06/01/2008 ^		175,000		175
Publishing - 0.28%
Dex Media East LLC
12.125% due 11/15/2012		125,000		139,375
Dex Media West LLC
8.50% due 08/15/2010		150,000		153,750
9.875% due 08/15/2013		75,000		80,531
Dex Media, Inc.
zero coupon, Step up to 9.00% on
11/15/2008 due 11/15/2013		100,000		83,250
zero coupon, Step up to 9.00% on
11/15/2008 due 11/15/2013		200,000		166,500
Houghton Mifflin Company
zero coupon, Step up to 11.5% on
10/15/2008 due 10/15/2013		150,000		125,625
Primedia, Inc.
8.875% due 05/15/2011		140,000		135,800

				884,831

Railroads & Equipment - 0.08%
Grupo Transportacion Ferroviaria Mexicana,
S.A. de C.V.
9.375% due 05/01/2012		110,000		116,462
10.25% due 06/15/2007		100,000		102,000
12.50% due 06/15/2012		40,000		44,400

				262,862

The accompanying notes are an integral part of the financial statements. 392

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Real Estate - 0.42%
Felcor Lodging LP, REIT
9.00% due 06/01/2011	$	300,000	$	317,250
Forest City Enterprises
7.625% due 06/01/2015		5,000		5,037
Host Marriott LP, REIT
6.375% due 03/15/2015		200,000		192,000
7.125% due 11/01/2013		500,000		505,000
Host Marriott LP, Series Q, REIT
6.75% due 06/01/2016		175,000		169,750
Kimball Hill, Inc.
10.50% due 12/15/2012		85,000		72,888
Ventas Realty LP/ Capital Corp.
6.50% due 06/01/2016		35,000		34,475

				1,296,400
Retail - 0.08%
Brookstone Company, Inc.
12.00% due 10/15/2012		35,000		31,850
NationsRent, Inc.
9.50% due 05/01/2015 (a)		65,000		76,357
Suburban Propane Partners LP
6.875% due 12/15/2013		160,000		153,200

				261,407
Retail Trade - 0.19%
American Greetings Corp.
7.375% due 06/01/2016		15,000		15,094
Blockbuster, Inc.
9.00% due 09/01/2012 (a)		105,000		97,125
FTD, Inc.
7.75% due 02/15/2014		225,000		219,375
Neiman Marcus Group, Inc.
10.375% due 10/15/2015 (a)		255,000		272,850

				604,444
Sanitary Services - 0.40%
Allied Waste North America, Inc.
6.375% due 04/15/2011		125,000		121,250
7.25% due 03/15/2015		250,000		245,625
8.50% due 12/01/2008		125,000		130,000
Waste Management, Inc.
6.375% due 11/15/2012		730,000		758,250

				1,255,125
Semiconductors - 0.07%
Amkor Technology, Inc.
2.50% due 05/15/2011		100,000		84,875
MagnaChip Semiconductor SA
8.00% due 12/15/2014		200,000		128,000

				212,875
Software - 0.08%
UGS Capital Corp. II
10.38% due 06/01/2011 (b)		155,000		156,163
UGS Corp.
10.00% due 06/01/2012		90,000		96,750

				252,913

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Steel - 0.10%
CitiSteel USA, Inc.
12.49% due 09/01/2010 (b)	$	100,000	$	102,750
International Steel Group, Inc.
6.50% due 04/15/2014		100,000		95,000
RathGibson, Inc.
11.25% due 02/15/2014		110,000		113,300

				311,050

Telecommunications Equipment &
Services - 1.24%
Cincinnati Bell Telephone Company
6.30% due 12/01/2028		5,000		4,275
Citizens Communications Company
9.00% due 08/15/2031		175,000		184,625
Deutsche Telekom International Finance BV
5.75% due 03/23/2016 (a)		430,000		418,276
Hawaiian Telcom Communications, Inc., Series B
12.50% due 05/01/2015 (a)		150,000		153,375
Intelsat Bermuda Ltd.
9.25% due 06/15/2016		170,000		176,800
11.25% due 06/15/2016		305,000		316,056
Intelsat Ltd.
7.625% due 04/15/2012		210,000		182,175
Lucent Technologies, Inc.
6.45% due 03/15/2029		825,000		703,312
PanAmSat Corp.
9.00% due 08/15/2014		75,000		76,313
Royal KPN NV
8.00% due 10/01/2010		580,000		624,261
United States West Communications, Inc.
6.875% due 09/15/2033		1,147,000		1,026,565

				3,866,033

Telephone - 1.06%
Cincinnati Bell, Inc.
7.00% due 02/15/2015		85,000		82,875
8.375% due 01/15/2014 (a)		140,000		140,525
Nordic Telephone Company Holdings
8.875% due 05/01/2016		180,000		188,100
NTL Cable PLC
9.125% due 08/15/2016		100,000		103,500
Qwest Communications International, Inc.
7.50% due 02/15/2014		87,000		86,239
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		306,000		303,322
Qwest Corp.
8.875% due 03/15/2012		125,000		135,312
Sprint Capital Corp.
8.375% due 03/15/2012		940,000		1,050,520
Telecom Italia Capital SA
5.25% due 10/01/2015		500,000		467,366
Telefonos de Mexico SA de CV
8.75% due 01/31/2016	MXN	2,000,000		181,410
Verizon Florida, Inc., Series F
6.125% due 01/15/2013 (a)	$	295,000		296,420

The accompanying notes are an integral part of the financial statements. 393

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Telephone (continued)
Windstream Corp.
8.625% due 08/01/2016	$	255,000	$	269,663

				3,305,252

Tobacco - 0.30%
Altria Group, Inc.
7.00% due 11/04/2013		870,000		946,454
Transportation - 0.05%
Gulfmark Offshore, Inc.
7.75% due 07/15/2014 (b)		20,000		19,900
Horizon Lines LLC
9.00% due 11/01/2012		122,000		125,203
OMI Corp.
7.625% due 12/01/2013		25,000		25,000

				170,103


TOTAL CORPORATE BONDS (Cost $143,387,684)			$	143,958,343


COLLATERALIZED MORTGAGE
OBLIGATIONS - 13.31%
Banc of America Commercial Mortgage Inc., Series
2006-1, Class A4
5.372% due 09/10/2045 (b)		340,000		337,735
Commercial Mortgage Asset Trust,
Series 1999-C1, Class C
7.35% due 01/17/2032		295,000		327,930
Commercial Mortgage Pass-Through Certificates,
Series 2001-J2A, Class A1
5.447% due 07/16/2034		323,208		325,008
Commercial Mortgage Pass-Through Certificates,
Series 2003-FL9, Class E
6.33% due 11/15/2015 (b)***		137,810		137,856
Countrywide Alternative Loan Trust, Series
2006-OA9, Class 1A1
5.525% due 07/20/2046 (b)***		2,886,937		2,887,630
Countrywide Alternative Loan Trust, Series
2006-OA9, Class 2A1B
5.525% due 07/20/2046 (b)***		1,875,576		1,875,604
Countrywide Home Loans, Series 2006-HYB3,
Class 2A1A
5.7863% due 05/20/2036 (b)		167,535		168,905
Credit Suisse Mortgage Capital Certificates, Series
2006-C1, Class A4
5.609% due 02/15/2039 (b)		1,675,000		1,684,731
First Boston Mortgage Securities Corp. STRIP,
Series D, IO
10.965% due 05/25/2017 ***		16,985		4,211
First Union National Bank Commercial Mortgage,
Series 2000-C1
0.7777% IO due 05/17/2032 (b)		13,343,514		322,439
Green Tree Financial Corp., Series 1997-6, Class A8
7.07% due 01/15/2029		641,175		658,483
GSRPM Mortgage Loan Trust, Series 2003-1,
Class A3
5.8244% due 01/25/2032 (b)		192,309		193,659
Impac CMB Trust, Series 2003-4, Class 1A1
5.6444% due 10/25/2033 (b)***		150,440		150,495

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Indymac Index Mortgage Loan Trust, Series
2006-AR6, Class 2A1A
5.5244% due 06/25/2047 (b)***	$	5,033,360	$	5,024,953
J.P. Morgan Chase Commercial Mortgage
Securities Corp, Series 2006-CB15, Class A4
5.814% due 06/12/2043 (b)		2,370,000		2,428,356
J.P. Morgan Mortgage Trust, Series 2005-A6,
Class 7A1
4.9827% due 08/25/2035 (b)		125,267		123,502
Luminent Mortgage Trust, Series 2006-4, Class A1A
5.5144% due 05/25/2046 (b)***		2,741,675		2,737,773
Master Adjustable Rate Mortgages Trust.,
Series 2006-2, Class 3A1
4.8496% due 01/25/2036 (b)		168,579		166,258
Master Adjustable Rate Mortgages Trust.,
Series 2006-OA1, Class 1A1
5.5344% due 04/25/2046 (b)***		4,743,552		4,747,101
Merit Securities Corp., Series 11PA, Class B2
6.8281% due 09/28/2032 (b)***		885,099		759,251
Merrill Lynch Mortgage Trust, Series 2006-C1,
Class A4
5.8442% due 05/12/2039 (b)		970,000		988,753
Morgan Stanley Mortgage Loan Trust, Series
2004-8AR, Class 4A1
5.3722% due 10/25/2034 (b)		908,360		909,493
Novastar Mortgage-Backed Notes, Series
2006-MTA1, Class 2A1A
5.5144% due 09/25/2046 (b)***		2,815,441		2,815,710
Structured Asset Mortgage Investments Inc.,
Series 2005-AR3, Class 2A1
6.6178% due 08/25/2035 (b)		553,301		564,854
Structured Asset Mortgage Investments, Inc.,
Series 2006-AR6, Class 1A3
5.585% due 07/25/2036 (b)***		2,889,638		2,888,609
Thornburg Mortgage Securities Trust, Series
2006-3, Class A2
5.4294% due 06/25/2036 (b)		2,847,532		2,841,991
Thornburg Mortgage Securities Trust, Series
2006-3, Class A3
5.4344% due 06/25/2036 (b)		2,853,438		2,858,392
Washington Mutual, Inc., Series 2005-AR17, Class
A1A1
5.5944% due 12/25/2045 (b)***		2,574,961		2,583,205

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $41,539,990)			$	41,512,887


ASSET BACKED SECURITIES - 11.27%
ACE Securities Corp., Series 2006-GP1, Class A
5.4544% due 02/25/2031 (b)***		2,655,200		2,655,176
Ameriquest Mortgage Securities, Inc.,
Series 2004-R11, Class M5
6.5244% due 11/25/2034 (b)***		315,000		319,786
Amortizing Residential Corp. Trust,
Series 2002-BC6, Class M2
6.5244% due 08/25/2032 (b)***		104,695		105,521

The accompanying notes are an integral part of the financial statements. 394

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Asset Backed Securities Corp.,
Series 2003-HE2, Class M2
7.23% due 04/15/2033 (b)***	$	354,482	$	355,065
Bear Stearns Asset Backed Securities Inc, Series
2003-ABF1, Class A
5.6944% due 01/25/2034 (b)***		64,448		64,662
Countrywide Asset-Backed Certificates,
Series 2004-5, Class M4
6.5744% due 06/25/2034 (b)***		420,000		426,328
Countrywide Home Equity Loan Trust, Series
2002-B, Class A1
5.58% due 04/15/2028 (b)***		97,744		97,867
EMC Mortgage Loan Trust, Series 2003-B, Class A1
5.8744% due 11/25/2041 (b)***		441,610		443,599
GSAMP Trust, Series 2006-S4, Class A1
5.475% due 05/25/2036 (b)***		2,550,812		2,550,947
IndyMac Seconds Asset Backed Trust, Series
2006-A, Class A
5.4544% due 06/25/2036 (b)***		2,653,061		2,653,040
IXIS Real Estate Capital Trust, Series 2006-HE2,
Class A1
5.445% due 08/25/2036 ***		4,528,502		4,528,470
Merrill Lynch Mortgage Investors, Inc. Series
2005-WM1N, Class N1
5.00% due 09/25/2035 ***		15,678		15,573
Mid State Trust, Series 6, Class A1
7.34% due 07/01/2035 ***		688,440		725,246
Morgan Stanley Mortgage Loan Trust, Series
2006-4SL, Class A1
5.4744% due 03/25/2036 (b)***		2,368,623		2,369,284
Novastar Home Equity Loan,
Series 2004-1, Class M4
6.2994% due 06/25/2034 (b)***		315,000		317,491
RAAC Series, Series 2006-RP2, Class A
5.5744% due 02/25/2037 (b)***		2,591,436		2,596,295
Residential Asset Mortgage Products Inc, Series
2003-RS4, Class AIIB
5.6544% due 05/25/2033 (b)		96,355		97,412
Residential Asset Securities Corp.,
Series 2002-KS2, Class MII2
6.9744% due 04/25/2032 (b)***		52,479		52,511
SACO I Trust, Inc., Series 2006-5, Class 1A
5.4744% due 04/25/2036 (b)***		4,512,316		4,515,443
SACO I Trust, Inc., Series 2006-5, Class 2A3
5.5044% due 05/25/2036 (b)***		2,040,000		2,039,980
SACO I Trust, Inc., Series 2006-6, Class A
5.4544% due 06/25/2036 (b)***		2,599,575		2,599,554
Sail Net Interest Margin Notes, Series 2004-BN2A,
Class A
5.00% due 12/27/2034 ***		27,351		27,295
Sail Net Interest Margin Notes, Series 2004-2A,
Class A
5.50% due 03/27/2034 ***		23,442		8,386
SLM Student Loan Trust, Series 2006-5, Class A2
5.429% due 07/25/2017 (b)***		2,900,000		2,899,548

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Structured Asset Securities Corp., Series
2006-ARS1, Class A1
5.4344% due 02/25/2036 (b)***	$	2,675,980	$	2,676,818

TOTAL ASSET BACKED SECURITIES
(Cost $35,144,313)			$	35,141,297


SUPRANATIONAL OBLIGATIONS - 0.31%
Venezuela - 0.31%
Corporacion Andina de Fomento, Series EXCH
6.875% due 03/15/2012		916,000		967,137

TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $984,820)			$	967,137


OPTIONS - 2.30%
Call Options - 2.30%
Eurodollar Futures
Expiration 09/18/2006 at $94.00		3,975,000		2,404,875
Expiration 12/18/2006 at $94.00		245,000		160,475
Eurodollar Midcurve 1 yr. Futures
Expiration 09/15/2006 at $94.75		32,500		9,750
U.S Treasury Bond
Expiration 11/21/2006 at $110.00		160,000		302,500
U.S. Treasury Notes 5 year Futures
Expiration 11/21/2006 at $102.00		61,000		189,672
U.S. Treasury Notes 5 yr. Futures
Expiration 11/21/2006 at $100.00		801,000		4,092,609

				7,159,881

Put Options - 0.00%
Eurodollar Futures
Expiration 03/19/2007 at $93.00		30,000		75

TOTAL OPTIONS (Cost $6,052,798)			$	7,159,956


SHORT TERM INVESTMENTS - 15.97%
Canadian Treasury Bill
4.78% due 09/20/2006	$	350,000	$	349,102
Federal National Mortgage Association
zero coupon due 09/20/2006 to
09/25/2006 ****		285,000		284,113
State Street Navigator Securities Lending
Prime Portfolio (c)		49,146,472		49,146,472

TOTAL SHORT TERM INVESTMENTS
(Cost $49,779,688)			$	49,779,687

The accompanying notes are an integral part of the financial statements. 395

John Hancock Funds II

Portfolio of investments — August 31, 2006

(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 9.04%
Merrill Lynch Tri-Party Repurchase
Agreement dated 08/31/2006 at
5.23% to be repurchased at
$28,204,097 on 9/1/2006,
collateralized by $14,000,000
Federal Home Loan Bank, 5.125%
due 08/15/2019 (valued at
$13,961,889, including interest)
and $14,000,000 Federal Home
Loan Mortgage Corp., 4.00% due
08/17/2007 (valued at
$13,881,778, including interest)
and $980,000 Federal Home Loan
Mortgage Corp., 5.40% due
02/28/2011 (valued at $976,766,
including interest) ***	$	28,200,000	$	28,200,000

TOTAL REPURCHASE AGREEMENTS
(Cost $28,200,000)			$	28,200,000

Total Investments (Strategic Bond Fund)
(Cost $448,998,871) - 145.25%			$	452,854,991
Liabilities in Excess of Other Assets - (45.25)%				(141,085,751)

TOTAL NET ASSETS - 100.00%			$	311,769,240



Strategic Income Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 1.37%
Mining - 1.17%
Newmont Mining Corp.		40,000	$	2,050,000
Silver Standard Resources, Inc., ADR * (a)		50,000		1,237,000

				3,287,000

Paper - 0.20%
Abitibi-Consolidated, Inc. (a)		212,000		572,400

TOTAL COMMON STOCKS (Cost $3,768,346)			$	3,859,400


U.S. TREASURY OBLIGATIONS - 12.74%
U.S. Treasury Bonds - 1.21%
8.125% due 08/15/2019 (a)****	$	930,000		1,215,757
9.25% due 02/15/2016 (a)		1,635,000		2,188,026

				3,403,783

U.S. Treasury Notes - 11.53%
4.25% due 08/15/2013 (a)		8,035,000		7,812,784
4.625% due 03/31/2008 (a)		1,585,000		1,579,242
4.875% due 07/31/2011 to 08/15/2016 (a)		13,060,000		13,193,531
6.125% due 08/15/2007 (a)		9,720,000		9,818,337

				32,403,894


TOTAL U.S. TREASURY OBLIGATIONS
(Cost $35,663,805)			$	35,807,677

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.47%
Federal National Mortgage
Association - 0.47%
5.50% TBA **	$	1,330,000	$	1,305,063

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,302,361)			$	1,305,063


FOREIGN GOVERNMENT OBLIGATIONS - 45.67%
Australia - 3.58%
Commonwealth of Australia
7.50% due 09/15/2009	AUD	12,600,000		10,059,358
Austria - 0.23%
Republic of Austria, Series EMTN
6.00% due 09/26/2008	NZD	1,000,000		640,341
Canada - 20.48%
Government of Canada
4.00% due 09/01/2010 (a)	CAD	4,100,000		3,706,135
4.50% due 09/01/2007		5,500,000		4,988,343
4.50% due 06/01/2015 (a)		4,800,000		4,471,701
5.50% due 06/01/2009		11,000,000		10,326,869
5.50% due 06/01/2010		6,000,000		5,703,755
6.00% due 06/01/2008		4,250,000		3,967,806
6.00% due 06/01/2011		13,500,000		13,239,064
Province of Ontario
5.00% due 03/08/2014		3,800,000		3,589,852
5.70% due 12/01/2008		5,500,000		5,135,454
5.75% due 03/03/2008	NZD	1,800,000		1,152,612
6.25% due 06/16/2015	CAD	2,000,000		1,277,486

				57,559,077
Colombia - 1.47%
Republic of Colombia
10.00% due 01/23/2012	$	110,000		128,040
10.75% due 01/15/2013		3,290,000		4,020,380

				4,148,420
Germany - 2.14%
Federal Republic of Germany
5.00% due 01/04/2012	EUR	1,300,000		1,772,415
5.00% due 07/04/2012		3,100,000		4,241,246

				6,013,661
Ireland - 0.82%
Republic of Ireland
4.60% due 04/18/2016		1,700,000		2,319,888
Italy - 2.74%
Italy Buoni Poliennali Del Tesoro
4.25% due 08/01/2013		2,373,000		3,116,901
4.75% due 02/01/2013		1,000,000		1,350,299
6.75% due 02/01/2007		2,500,000		3,242,528

				7,709,728
Mexico - 0.75%
Government of Mexico
5.625% due 01/15/2017	$	520,000		512,720
5.875% due 01/15/2014 (a)		550,000		559,625
6.375% due 01/16/2013		490,000		509,600
8.125% due 12/30/2019		360,000		433,800

The accompanying notes are an integral part of the financial statements. 396

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Mexico (continued)
Government of Mexico, Series XW (continued)
10.375% due 02/17/2009 (a)	$	80,000	$	88,960

				2,104,705

New Zealand - 0.28%
New Zealand Government Bond, Series 708
6.00% due 07/15/2008	NZD	1,200,000		776,621
Norway - 5.95%
Kingdom of Norway
5.00% due 05/15/2015	NOK	28,200,000		4,754,869
6.00% due 05/16/2011		47,800,000		8,222,967
6.75% due 01/15/2007		23,400,000		3,744,552

				16,722,388

Panama - 0.29%
Republic of Panama
7.25% due 03/15/2015 (a)	$	780,000		822,900
Spain - 4.33%
Kingdom of Spain
4.20% due 07/30/2013	EUR	3,700,000		4,878,095
5.00% due 07/30/2012		1,800,000		2,464,077
5.35% due 10/31/2011		3,500,000		4,831,124

				12,173,296

United Kingdom - 2.61%
United Kingdom Gilt
4.50% due 03/07/2007	GBP	1,650,000		3,132,672
5.00% due 03/07/2008		2,200,000		4,193,322

				7,325,994


TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $127,382,689)			$	128,376,377


CORPORATE BONDS - 23.46%
Advertising - 0.11%
Vertis, Inc.
9.75% due 04/01/2009	$	300,000		303,750
Aerospace - 0.26%
Argo-Tech Corp.
9.25% due 06/01/2011		225,000		232,313
Sequa Corp.
9.00% due 08/01/2009		475,000		501,125

				733,438

Apparel & Textiles - 0.09%
Collins & Aikman Floorcoverings, Inc.
9.75% due 02/15/2010 (a)		250,000		245,625
Banking - 2.37%
Kreditanstalt fuer Wiederaufbau, Series EMTN
5.73% due 08/20/2007	NZD	1,000,000		643,997
Kreditanstalt fuer Wiederaufbau, Series INTL
1.85% due 09/20/2010	JPY	263,000,000		2,317,343
Landwirtschaftliche Rentenbank, Series EMTN
6.50% due 09/17/2009	NZD	1,000,000		644,129
Oesterreichische Kontrollbank AG
1.80% due 03/22/2010	JPY	263,000,000		2,311,401

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Banking (continued)
Rabobank Nederland, Series EMTN
0.20% due 06/20/2008	JPY	88,000,000	$	743,713

				6,660,583

Broadcasting - 0.62%
Allbritton Communications Company
7.75% due 12/15/2012	$	1,245,000		1,230,994
Radio One, Inc.
6.375% due 02/15/2013		225,000		203,625
8.875% due 07/01/2011		200,000		203,000
Salem Communications Corp.
7.75% due 12/15/2010		100,000		99,625

				1,737,244

Building Materials & Construction - 0.05%
Brand Services, Inc.
12.00% due 10/15/2012		125,000		140,710
Business Services - 0.07%
Allied Security Escrow Corp.
11.375% due 07/15/2011		200,000		197,500
Cable and Television - 0.89%
Atlantic Broadband Finance LLC
9.375% due 01/15/2014		300,000		289,500
DirecTV Holdings LLC
8.375% due 03/15/2013		175,000		183,750
Mediacom Broadband LLC
8.50% due 10/15/2015		75,000		74,250
Mediacom LLC/Mediacom Capital Corp.
9.50% due 01/15/2013		125,000		128,437
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		1,581,000		1,600,763
Young Broadcasting, Inc.
10.00% due 03/01/2011 (a)		250,000		231,250

				2,507,950

Cellular Communications - 1.46%
America Movil SA de CV
9.00% due 01/15/2016	MXN	12,000,000		1,126,831
Centennial Communications Corp.
10.00% due 01/01/2013	$	1,000,000		997,500
Dobson Cellular Systems, Inc.
8.875% due 10/01/2013		1,000,000		987,500
Rural Cellular Corp.
9.75% due 01/15/2010		1,000,000		995,000

				4,106,831

Chemicals - 0.13%
Ethyl Corp.
8.875% due 05/01/2010		200,000		206,000
Huntsman ICI Chemicals
10.125% due 07/01/2009		50,000		51,000
Nova Chemicals Corp.
6.50% due 01/15/2012 (a)		125,000		115,937

				372,937

Coal - 0.07%
Massey Energy Company
6.625% due 11/15/2010		200,000		197,000

The accompanying notes are an integral part of the financial statements. 397

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Containers & Glass - 1.91%
Graphic Packaging International Corp.
8.50% due 08/15/2011	$	1,000,000	$	1,015,000
9.50% due 08/15/2013 (a)		1,000,000		1,005,000
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		1,450,000		1,468,125
Stone Container Corp.
8.375% due 07/01/2012		925,000		881,063
9.75% due 02/01/2011		967,000		993,592

				5,362,780
Diversified Financial Services - 2.70%
General Electric Capital Corp.
6.625% due 02/04/2010	NZD	4,600,000		2,968,458
General Electric Capital Corp., Series EMTN
8.75% due 10/05/2015	MXN	21,000,000		1,878,927
9.50% due 12/11/2014		5,500,000		514,373
Toyota Motor Credit Corp.
0.75% due 06/09/2008	JPY	262,000,000		2,236,981

				7,598,739
Financial Services - 0.36%
BCP Crystal Holdings Corp.
9.625% due 06/15/2014	$	250,000		270,937
JSG Funding PLC
9.625% due 10/01/2012		700,000		730,625

				1,001,562
Food & Beverages - 0.16%
Del Monte Corp.
8.625% due 12/15/2012 (a)		200,000		209,250
Pinnacle Foods Holding Corp.
8.25% due 12/01/2013 (a)		250,000		245,625

				454,875
Gas & Pipeline Utilities - 0.49%
Atlas Pipeline Partners LP
8.125% due 12/15/2015		200,000		204,000
MarkWest Energy Partners LP
8.50% due 07/15/2016		1,000,000		1,012,500
Targa Resources, Inc.
8.50% due 11/01/2013		175,000		174,563

				1,391,063
Healthcare Products - 0.79%
Hanger Orthopedic Group, Inc.
10.25% due 06/01/2014		650,000		651,625
Pfizer Inc, Series INTL
0.80% due 03/18/2008	JPY	183,000,000		1,561,673

				2,213,298
Healthcare Services - 0.47%
Ameripath, Inc.
10.50% due 04/01/2013	$	275,000		290,812
Healthsouth Corp.
10.75% due 06/15/2016 (a)		1,000,000		1,022,500

				1,313,312
Hotels & Restaurants - 0.86%
CCM Merger, Inc.
8.00% due 08/01/2013		1,365,000		1,306,988

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Hotels & Restaurants (continued)
Hilton Hotels Corp.
7.625% due 12/01/2012	$	250,000	$	264,326
Landry's Restaurants, Inc., Series B
7.50% due 12/15/2014		390,000		368,550
Starwood Hotels & Resorts Worldwide, Inc.
7.875% due 05/01/2012		175,000		189,437
Turning Stone Casino Resort
9.125% due 12/15/2010		300,000		301,500

				2,430,801
Industrial Machinery - 0.17%
Manitowoc, Inc.
7.125% due 11/01/2013		485,000		477,725
International Oil - 2.30%
Pan American Energy LLC
7.75% due 02/09/2012		1,500,000		1,509,375
Pemex Project Funding Master Trust
5.75% due 12/15/2015 (a)		130,000		126,490
7.375% due 12/15/2014		710,000		769,285
8.50% due 02/15/2008		3,095,000		3,215,705
9.125% due 10/13/2010		750,000		836,250

				6,457,105
Leisure Time - 2.91%
AMF Bowling Worldwide, Inc.
10.00% due 03/01/2010		250,000		256,250
Caesars Entertainment, Inc.
7.00% due 04/15/2013		110,000		113,546
Choctaw Resort Development Enterprise
7.25% due 11/15/2019		250,000		245,000
Chukchansi Economic Development Authority
8.00% due 11/15/2013		200,000		202,000
Cinemark, Inc.
zero coupon, Step up to 9.75% on
03/15/2009 due 03/15/2014		350,000		273,000
Isle of Capri Casinos
7.00% due 03/01/2014		1,100,000		1,045,000
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		1,500,000		1,498,125
MGM Mirage, Inc.
6.75% due 09/01/2012		475,000		461,937
Mohegan Tribal Gaming Authority
7.125% due 08/15/2014		1,375,000		1,340,625
MTR Gaming Group, Inc.
9.00% due 06/01/2012		1,000,000		1,007,500
Penn National Gaming, Inc.
6.75% due 03/01/2015		300,000		288,750
6.875% due 12/01/2011		100,000		99,500
Pokagon Gaming Authority
10.375% due 06/15/2014		500,000		528,750
Station Casinos, Inc.
6.50% due 02/01/2014		400,000		373,000
6.625% due 03/15/2018		325,000		290,063
6.875% due 03/01/2016 (a)		175,000		162,094

				8,185,140

The accompanying notes are an integral part of the financial statements. 398

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Manufacturing - 0.11%
Blount, Inc.
8.875% due 08/01/2012	$	150,000	$	150,188
Park-Ohio Industries, Inc.
8.375% due 11/15/2014		175,000		158,375

				308,563

Medical-Hospitals - 0.88%
Alliance Imaging, Inc.
7.25% due 12/15/2012 (a)		1,000,000		930,000
HealthSouth Corp.
11.4181% due 06/15/2014 (a)(b)		1,500,000		1,541,250

				2,471,250

Metal & Metal Products - 0.47%
Mueller Group, Inc.
10.00% due 05/01/2012		130,000		141,700
Mueller Holdings, Inc.
zero coupon, Step up to 14.75% on
04/15/2009 due 04/15/2014		39,000		34,320
Novelis, Inc.
7.25% due 02/15/2015		215,000		204,250
PNA Group, Inc.
10.75% due 09/01/2016		920,000		940,700

				1,320,970

Mining - 0.33%
Drummond Company, Inc.
7.375% due 02/15/2016		1,000,000		940,000
Paper - 0.87%
Abitibi-Consolidated, Inc.
7.75% due 06/15/2011 (a)		75,000		69,187
8.375% due 04/01/2015 (a)		340,000		309,400
8.55% due 08/01/2010 (a)		50,000		49,375
8.85% due 08/01/2030		210,000		179,025
Boise Cascade LLC
7.125% due 10/15/2014		350,000		325,500
Buckeye Technologies, Inc.
9.25% due 09/15/2008		100,000		100,000
Newark Group, Inc.
9.75% due 03/15/2014		225,000		214,875
Pope & Talbot, Inc.
8.375% due 06/01/2013		1,500,000		1,200,000

				2,447,362

Petroleum Services - 0.37%
Allis-Chalmers Energy, Inc.
9.00% due 01/15/2014		920,000		936,100
Hanover Equipment Trust
8.75% due 09/01/2011		100,000		104,000

				1,040,100

Plastics - 0.12%
Berry Plastics Corp.
10.75% due 07/15/2012		300,000		327,000
Publishing - 0.16%
Block Communications, Inc.
8.25% due 12/15/2015		200,000		193,750

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Publishing (continued)
CBD Media Holdings, LLC
9.25% due 07/15/2012 (a)	$	250,000	$	245,000

				438,750

Retail Trade - 0.06%
PETCO Animal Supplies, Inc.
10.75% due 11/01/2011		175,000		184,188
Sanitary Services - 0.05%
Allied Waste North America, Inc., Series B
9.25% due 09/01/2012		125,000		133,750
Telecommunications Equipment &
Services - 0.08%
Insight Midwest LP
10.50% due 11/01/2010		225,000		233,437
Telephone - 0.36%
Cincinnati Bell, Inc.
8.375% due 01/15/2014 (a)		1,000,000		1,003,750
Tobacco - 0.30%
Alliance One International, Inc.
11.00% due 05/15/2012		845,000		845,000
Transportation - 0.06%
Mobile Services Group, Inc.
9.75% due 08/01/2014		160,000		162,200

TOTAL CORPORATE BONDS (Cost $66,473,354)			$	65,946,288


COLLATERALIZED MORTGAGE
OBLIGATIONS - 5.06%
Bank of America Alternative Loan Trust,
Series 2006-1, Class 4CB1
6.50% due 02/25/2036		3,245,148		3,276,409
Countrywide Home Loan Mortgage Pass Through
Trust, Series 2005-27, Class 2A1
5.50% due 12/25/2035		7,707,789		7,505,459
Wamu Alternative Mortgage Pass-Through
Certificates, Series 2006-3, Class 4CB
6.50% due 03/25/2036		3,409,939		3,441,899

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $14,206,926)			$	14,223,767


SUPRANATIONAL OBLIGATIONS - 0.69%
Supranational - 0.42%
European Investment Bank
6.75% due 11/17/2008	NZD	1,800,000		1,169,646
Venezuela - 0.27%
Corporacion Andina de Fomento, Series EXCH
6.875% due 03/15/2012	$	730,000		770,753

TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $1,921,208)			$	1,940,399


SHORT TERM INVESTMENTS - 35.37%
Canadian Treasury Bill
zero coupon due 04/19/2007	CAD	4,400,000	$	3,873,642
4.78% due 09/20/2006	$	290,000		289,256
Great Lakes Carbon Income Fund		72,855		674,797

The accompanying notes are an integral part of the financial statements. 399

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Income Fund (continued)
		Shares or
		Principal
		Amount		Value


SHORT TERM INVESTMENTS (continued)
Mexico Cetes, Series BI
zero coupon due 01/04/2007	MXN	60,000,000	$	5,362,577
State Street Global Advisers Funds (c)	$	18,441,401		18,441,401
State Street Navigator Securities Lending
Prime Portfolio (c)		70,775,414		70,775,414

TOTAL SHORT TERM INVESTMENTS
(Cost $99,295,533)			$	99,417,087

Total Investments (Strategic Income Fund)
(Cost $350,014,222) - 124.83%			$	350,876,058
Liabilities in Excess of Other Assets - (24.83)%				(69,782,625)

TOTAL NET ASSETS - 100.00%			$	281,093,433



Strategic Value Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 97.50%
Banking - 3.66%
Bank of America Corp.		108,461	$	5,582,488
Broadcasting - 3.23%
CBS Corp., Class B		172,233		4,917,252
Building Materials & Construction - 3.14%
Masco Corp.		174,779		4,790,692
Cable and Television - 1.03%
E.W. Scripps Company, Class A		34,400		1,564,168
Computers & Business Equipment - 4.47%
Dell, Inc. *		156,450		3,527,948
Diebold, Inc.		18,800		787,908
Sun Microsystems, Inc. *		500,758		2,498,782

				6,814,638
Containers & Glass - 3.22%
Owens-Illinois, Inc. *		323,219		4,900,000
Cosmetics & Toiletries - 2.33%
Alberto-Culver Company, Class B		17,160		844,787
Estee Lauder Companies, Inc., Class A		73,381		2,704,824

				3,549,611
Crude Petroleum & Natural Gas - 5.13%
Apache Corp.		56,680		3,700,070
Devon Energy Corp.		65,894		4,117,716

				7,817,786
Drugs & Health Care - 4.17%
Wyeth		130,400		6,350,480
Electrical Utilities - 3.24%
FPL Group, Inc. (a)		111,240		4,944,618
Financial Services - 8.72%
JPMorgan Chase & Company		151,226		6,904,979
Mellon Financial Corp.		131,147		4,882,603
Merrill Lynch & Company, Inc.		20,392		1,499,424

				13,287,006

Strategic Value Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Industrial Machinery - 1.78%
Pall Corp.	99,760	$	2,715,467
Insurance - 7.63%
Allstate Corp.	68,575		3,973,235
Conseco, Inc. * (a)	211,151		4,370,826
St. Paul Travelers Companies, Inc.	74,700		3,279,330

			11,623,391
International Oil - 1.97%
Noble Corp.	45,995		3,007,613
Internet Software - 5.64%
Symantec Corp. *	461,204		8,596,843
Liquor - 0.58%
Molson Coors Brewing Company, Class B	12,643		888,803
Manufacturing - 3.87%
Tyco International, Ltd.	225,473		5,896,119
Medical-Hospitals - 1.32%
Tenet Healthcare Corp. *	254,602		2,006,264
Newspapers - 2.67%
The New York Times Company, Class A (a)	180,510		4,065,085
Office Furnishings & Supplies - 2.30%
OfficeMax, Inc.	84,465		3,507,831
Paper - 1.52%
Bowater, Inc. (a)	101,895		2,316,073
Petroleum Services - 1.71%
GlobalSantaFe Corp.	53,092		2,613,188
Pharmaceuticals - 3.87%
Merck & Company, Inc.	145,527		5,901,120
Retail Trade - 3.78%
Saks, Inc. * (a)	233,910		3,375,321
Wal-Mart Stores, Inc.	53,270		2,382,235

			5,757,556
Software - 4.38%
Compuware Corp. *	470,045		3,572,342
Oracle Corp. *	197,881		3,096,838

			6,669,180
Telecommunications Equipment &
Services - 4.21%
Embarq Corp. *	13,458		634,545
Nortel Networks Corp. *	2,763,769		5,776,277

			6,410,822
Telephone - 6.18%
Sprint Nextel Corp.	91,312		1,544,999
Verizon Communications, Inc.	223,700		7,869,766

			9,414,765
Toys, Amusements & Sporting Goods - 1.75%
Mattel, Inc.	141,676		2,669,176

TOTAL COMMON STOCKS (Cost $144,303,725)		$	148,578,035

The accompanying notes are an integral part of the financial statements. 400

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Strategic Value Fund (continued)
		Shares or
		Principal
		Amount		Value


SHORT TERM INVESTMENTS - 12.24%
Citigroup Funding, Inc.
zero coupon due 09/01/2006	$	5,318,000	$	5,318,000
State Street Navigator Securities Lending
Prime Portfolio (c)		13,329,847		13,329,847

TOTAL SHORT TERM INVESTMENTS
(Cost $18,647,847)			$	18,647,847

Total Investments (Strategic Value Fund)
(Cost $162,951,572) - 109.74%			$	167,225,882
Liabilities in Excess of Other Assets - (9.74)%				(14,838,381)

TOTAL NET ASSETS - 100.00%			$	152,387,501



Total Return Fund
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 1.24%
Treasury Inflation Protected
Securities (d) - 1.24%
2.00% due 01/15/2026 (a)***	$	12,062,196 $		11,619,755
2.375% due 01/15/2025 (a)***		2,045,046		2,087,385
3.625% due 04/15/2028 (a)***		501,760		625,024

				14,332,164

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $14,163,544)			$	14,332,164


U.S. GOVERNMENT AGENCY OBLIGATIONS - 44.43%
Federal National Mortgage
Association - 44.43%
3.719% due 07/01/2034 ***		911,514		905,434
4.347% due 11/01/2034 to
03/01/2035 (b)***		2,713,026		2,696,735
4.463% due 05/01/2035 (b)***		2,136,996		2,118,846
4.460% due 01/01/2035 ***		749,603		733,589
4.84% due 06/01/2035 ***		2,226,883		2,191,902
5.50% due 06/01/2035 (b)***		1,028,801		1,010,137
5.50% due 12/01/2034 to 05/01/2036 ***		203,345,207		199,834,594
5.50% TBA **		310,000,000		304,187,500
6.232% due 11/01/2035 (b)***		1,317,971		1,357,710

				515,036,447

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $513,856,006)			$	515,036,447


FOREIGN GOVERNMENT OBLIGATIONS - 5.67%
Belgium - 0.32%
Kingdom of Belgium
zero coupon due 09/14/2006 ***	EUR	2,920,000		3,731,689
Germany - 2.16%
Federal Republic of Germany, Series 0606
zero coupon due 12/13/2006 ***		19,700,000		24,989,287

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Netherlands - 3.19%
Kingdom of Netherlands
zero coupon due 10/31/2006 ***	EUR	29,100,000	$	37,045,291

TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $64,974,548)			$	65,766,267


CORPORATE BONDS - 19.78%
Automobiles - 0.86%
DaimlerChrysler N.A. Holding Corp.
5.4863% due 03/07/2007 (b)***	$	10,000,000		10,005,280
Banking - 4.45%
ANZ National International Ltd., Series 144A
5.5394% due 08/07/2009 (b)		2,600,000		2,596,901
Bank of America Corp.
5.4056% due 06/19/2009 (b)***		11,100,000		11,100,477
BNP Paribas
5.186% due 06/29/2049 (b)***		6,000,000		5,635,260
HSBC Bank USA
5.4944% due 09/21/2007 (b)***		5,000,000		5,005,275
HSBC Bank USA, Series BKNT
5.53% due 06/10/2009 (b)***		900,000		900,219
HSBC Finance Corp.
5.4594% due 09/15/2008 (b)***		4,300,000		4,310,316
Royal Bank of Scotland Group PLC
7.648% due 08/31/2049 (b)***		5,000,000		5,666,310
Sumitomo Mitsui Banking Corp.
5.625% due 07/29/2049 (b)***		5,200,000		5,025,254
USB Capital IX
6.189% due 04/15/2042 (a)(b)***		300,000		301,255
Wachovia Bank NA, Series BKNT
5.46% due 05/25/2010 (b)***		11,000,000		10,999,186

				51,540,453

Cable and Television - 0.09%
Cablevision
6.87% due 03/23/2013 (b)*** (f)		997,500		993,951
Diversified Financial Services - 1.89%
General Electric Capital Corp., Series MTNA
5.4494% due 12/15/2009 (b)***		11,000,000		11,030,635
Wells Fargo & Company
5.4294% due 09/15/2009 (a)(b)***		10,900,000		10,917,484

				21,948,119

Electrical Utilities - 0.15%
FirstEnergy Corp., Series A
5.50% due 11/15/2006 ***		1,800,000		1,799,685
Financial Services - 9.60%
American Express Credit Corp.
5.35% due 12/12/2007 (b)***		2,100,000		2,101,033
American Express Credit Corp., Series MTN
5.082% due 03/02/2009 (b)***		2,300,000		2,300,529
Atlantic & Western Re, Ltd., Series A
11.5081% due 01/09/2007 (b)		250,000		245,932
Bear Stearns Companies, Inc.
5.635% due 04/29/2008 (b)***		5,300,000		5,313,923

The accompanying notes are an integral part of the financial statements. 401

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
Bear Stearns Companies, Inc., Series MTN
5.4894% due 08/21/2009 (b)***	$	1,800,000	$	1,800,567
Bear Stearns Companies, Inc., Series MTNB
5.5888% due 03/30/2009 (b)***		2,500,000		2,501,548
CIT Group Holdings, Inc.
5.635% due 01/30/2009 (b)***		1,300,000		1,302,711
CIT Group, Inc.
5.4656% due 12/19/2007 (b)***		5,000,000		5,004,970
5.78% due 07/28/2011 (b)***		2,700,000		2,701,739
CIT Group, Inc., Series MTN
5.5463% due 08/17/2009 (b)***		2,300,000		2,299,000
Citigroup Global Markets Holdings, Inc., Series
MTNA
5.4956% due 03/17/2009 (b)***		2,400,000		2,401,886
Citigroup, Inc.
5.52% due 12/26/2008 (b)***		1,400,000		1,400,655
5.5156% due 05/02/2008 (b)***		5,000,000		5,005,910
5.525% due 01/30/2009 (b)***		1,500,000		1,500,417
6.125% due 08/25/2036 ***		3,500,000		3,548,098
Goldman Sachs Group, Inc.
5.5388% due 06/23/2009 (b)***		1,700,000		1,700,165
Goldman Sachs Group, Inc., Series B MTN
5.8406% due 07/23/2009 (b)***		1,100,000		1,107,309
Goldman Sachs Group, Inc., Series MTN
5.5359% due 11/10/2008 (b)***		5,700,000		5,706,253
Goldman Sachs Group, Inc., Series MTNB
5.5269% due 12/22/2008 (b)***		2,800,000		2,802,321
HBOS Treasury Services PLC, Series MTN
5.5469% due 07/17/2009 (b)***		3,900,000		3,900,294
International Lease Finance Corp., Series MTN
5.62% due 05/24/2010 (b)***		18,700,000		18,723,599
John Deere Capital Corp., Series MTN
5.3993% due 07/15/2008 (b)***		2,400,000		2,399,064
Lehman Brothers Holdings, Inc., Series MTN
5.3781% due 11/24/2008 (b)***		1,200,000		1,199,816
5.6588% due 12/23/2010 (a)(b)***		10,000,000		10,015,580
Merrill Lynch & Company, Inc., Series MTN
5.4919% due 08/14/2009 (b)***		2,300,000		2,299,549
5.685% due 07/25/2011 (b)***		3,200,000		3,202,096
Merrill Lynch & Company, Inc., Series MTNB
5.575% due 01/30/2009 (b)***		3,200,000		3,202,557
Morgan Stanley, Series GMTN
5.55% due 02/09/2009 (b)***		5,100,000		5,108,884
SLM Corp., Series MTNA
5.625% due 07/27/2009 (b)***		10,500,000		10,508,516

				111,304,921
International Oil - 0.27%
Pemex Project Funding Master Trust
5.75% due 12/15/2015 ***		800,000		778,400
Transocean, Inc.
5.5906% due 09/05/2008		2,300,000		2,299,489

				3,077,889
Software - 0.22%
Oracle Corp. and Ozark Holding, Inc.
5.73% due 01/13/2009 (b)***		2,500,000		2,502,898

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Telecommunications Equipment &
Services - 0.52%
Embarq Corp.
6.738% due 06/01/2013 ***	$	2,600,000	$	2,652,689
7.082% due 06/01/2016 ***		3,300,000		3,367,115

				6,019,804

Telephone - 1.16%
AT&T, Inc.
5.495% due 05/15/2008 (b)***		1,700,000		1,699,978
5.6119% due 11/14/2008 (b)***		1,600,000		1,604,234
AT&T, Inc., Series 144A
4.214% due 06/05/2007 ***		3,200,000		3,168,672
BellSouth Corp.
5.58% due 08/15/2008 (b)***		3,800,000		3,800,144
Telecom Italia Capital SA
6.1081% due 07/18/2011 (b)***		3,200,000		3,205,094

				13,478,122

Tobacco - 0.37%
Philip Morris Companies, Inc.
7.75% due 01/15/2027 ***		3,600,000		4,350,089
Transportation - 0.20%
FedEx Corp.
5.5794% due 08/08/2007 (b)***		2,300,000		2,300,108

TOTAL CORPORATE BONDS (Cost $229,364,940)			$	229,321,319


MUNICIPAL BONDS - 0.58%
Iowa - 0.10%
Tobacco Settlement Authority of Iowa, Series A
6.50% due 06/01/2023 ***		1,185,000		1,173,600
Nevada - 0.01%
Truckee Meadows Water Authority
5.00% due 07/01/2036 (b)***		67,000		76,174
Pennsylvania - 0.13%
Pennsylvania Higher Educational Facilties Authority
4.75% due 07/15/2013 ***		1,500,000		1,564,740
Texas - 0.04%
Eagle Mountain & Saginaw Independent School
District
4.75% due 08/15/2033 ***		500,000		509,845
Virginia - 0.04%
Tobacco Settlement Financing Corp.
5.625% due 06/01/2037 ***		400,000		418,172
Wisconsin - 0.26%
Badger Tobacco Asset Securitization Corp.
6.125% due 06/01/2027 ***		2,795,000		2,983,690

TOTAL MUNICIPAL BONDS (Cost $6,661,651)			$	6,726,221


COLLATERALIZED MORTGAGE
OBLIGATIONS - 9.54%
American Home Mortgage Investment Trust, Series
2004-4, Class 4A
4.39% due 02/25/2045 ***		424,216		416,093

The accompanying notes are an integral part of the financial statements. 402

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-11, Class 1A1
4.90% due 12/25/2035 (b)***	$	1,866,280	$	1,877,108
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-11, Class A2A
4.70% due 12/25/2035 ***		649,784		637,555
Countrywide Alternative Loan Trust,
Series 2005-81, Class A1
5.6044% due 02/25/2037 (b)***		9,284,908		9,322,140
Countrywide Home Loans,
Series 2005-HYB9, Class 3A2A
5.25% due 02/20/2036 (b)***		806,522		801,853
CS First Boston Mortgage Securities Corp.,
Series 2005-C6, Class A1
4.938% due 12/15/2040 ***		1,564,836		1,554,193
Federal Home Loan Mortgage Corp., Series 2637,
Class F
5.73% due 06/15/2018 (b)***		489,432		489,698
Federal Home Loan Mortgage Corp., Series 3036,
Class NA
5.00% due 07/15/2024 ***		4,600,000		4,572,511
Federal Home Loan Mortgage Corp., Series 3149,
Class LF
5.63% due 05/15/2036 (b)***		1,900,000		1,900,105
Federal Home Loan Mortgage Corp.,
Series 2844 , Class PR
5.00% due 09/15/2017 ***		2,630,856		2,619,179
Federal Home Loan Mortgage Corp.,
Series T-63, Class 1A1
5.482% due 02/25/2045 (b)***		474,547		472,007
Federal National Mortgage Association, Series
2005-33, Class QA
5.00% due 06/25/2027 ***		3,365,689		3,340,759
Federal National Mortgage Association,
Series 2003-W6, Class F
5.6744% due 09/25/2042 (b)***		2,926,290		2,940,709
Federal National Mortgage Association,
Series 2005-120, Class NF
5.4244% due 01/25/2021 (b)***		35,469,554		35,380,689
Federal National Mortgage Association,
Series 2006-5, Class 3A2
4.6798% due 05/25/2035 (b)***		500,000		490,924
GE Capital Commercial Mortgage Corp.,
Series 2002-3A, Class A1
4.229% due 12/10/2037 (b)***		7,254,025		7,089,873
Government National Mortgage Association, Series
2003-4, Class LA
4.00% due 07/16/2027 ***		532,956		526,863
LB-UBS Commercial Mortgage Trust, Series
2005-C7, Class A1
4.99% due 11/15/2030 ***		1,925,239		1,916,327
Lehman Brothers Floating Rate Commercial
Mortgage Trust, Series 2006-LLFA , Class A1
5.4056% due 09/15/2021 (b)***		2,600,000		2,604,079
Mellon Residential Funding Corp.,
Series 2000-TBC3, Class A1
5.77% due 12/15/2030 (b)***		7,509,520		7,533,678

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Structured Asset Mortgage Investments, Inc.,
Series 2005-AR8, Class A1A
5.6044% due 02/25/2036 (b)***	$	947,093	$	947,555
Structured Asset Securities Corp., Series
2005-AR1, Class A3
5.4244% due 09/25/2035 (b)***		4,830,078		4,830,569
Thornburg Mortgage Securities Trust,
Series 2006-5, Class A1
5.45% due 08/25/2036 (b)***		6,100,000		6,100,956
Washington Mutual Inc., Series 2001-7, Class A
5.628% due 05/25/2041 (b)***		846,448		854,623
Washington Mutual Inc., Series 2005-AR19, Class
A1A1
5.5944% due 12/25/2045 (b)***		8,207,446		8,231,336
Wells Fargo Mortgage Backed Securities Trust,
Series 2006-AR2 , Class 2A1
4.95% due 03/25/2036 (b)***		3,204,795		3,164,978

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $110,645,557)			$	110,616,360


ASSET BACKED SECURITIES - 5.32%
Argent Securities, Inc., Series 2005-W4, Class A2A
5.4644% due 02/25/2036 (b)***		2,737,728		2,738,074
Argent Securities, Inc., Series 2006-M2 , Class A2A
5.3781% due 09/25/2036 (b)***		1,600,000		1,601,254
Countrywide Asset-Backed Certificates, Series
2006-16, Class 2A1
5.375% due 10/25/2036		1,500,000		1,500,705
Countrywide Asset-Backed Certificates, Series
2006-15, Class A1
5.434% due 10/25/2036		3,200,000		3,201,003
First NLC Trust, Series 2005-3, Class AV1
5.4344% due 12/25/2035 (b)***		564,995		565,033
Fremont Home Loan Trust,
Series 2005-E, Class 2A1
5.4144% due 01/25/2036 (b)***		1,063,023		1,063,015
GE-WMC Mortgage Securities LLC,
Series 2005-2, Class A2A
5.4244% due 12/25/2035 (b)***		21,613,419		21,616,790
GSR Mortgage Loan Trust,
Series 2005-HEL1, Class A2A
5.4244% due 11/25/2030 (b)***		1,363,349		1,363,411
Home Equity Mortgage Trust, Series 2005-HF1,
Class A2A
5.4344% due 02/25/2036 (b)***		1,028,799		1,028,894
Indymac Residential Asset Backed Trust,
Series 2005-D, Class AII1
5.4244% due 03/25/2036 (b)***		1,386,934		1,387,151
JP Morgan Mortgage Acquisition Corp.,
Series 2006-WMC3, Class A2
5.38% due 08/25/2036 (b)		1,700,000		1,700,799
Long Beach Mortgage Loan Trust,
Series 2004-4 , Class 1A1
5.6044% due 10/25/2034 (b)***		1,079,800		1,082,083
Merrill Lynch Mortgage Investors, Inc., Series
2005-SL1, Class A
5.5244% due 06/25/2035 (b)***		2,106,527		2,106,740

The accompanying notes are an integral part of the financial statements. 403

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Newcastle Mortgage Securities Trust,
Series 2006-1, Class A1
5.3944% due 03/25/2036 (b)***	$	4,312,297	$	4,313,183
Nissan Auto Lease Trust, Series 2004-A, Class A3
2.90% due 08/15/2007 ***		91,621		91,518
Option One Mortgage Loan Trust, Series 2005-4,
Class A2
5.4244% due 11/25/2035 (b)***		2,744,462		2,744,882
Residential Asset Securities Corp.,
Series 2006-KS6 , Class A1
5.44% due 08/25/2036 (b)***		1,979,792		1,979,483
SLM Student Loan Trust, Series 2004-8, Class A2
5.505% due 07/25/2013 (b)***		39,722		39,732
SLM Student Loan Trust, Series 2005-1, Class A1
5.495% due 01/26/2015 (b)***		1,486,237		1,486,501
SLM Student Loan Trust, Series 2005-2, Class A2
5.495% due 01/25/2013 (b)***		2,009,892		2,010,236
Soundview Home Equity Loan Trust,
Series 2005-B, Class A1
5.4344% due 05/25/2035 (b)***		189,880		189,879
Soundview Home Equity Loan Trust,
Series 2006-EQ1, Class A1
5.458% due 10/25/2036 (b)		3,000,000		3,000,940
Structured Asset Securities Corp.,
Series 2005-S7, Class A1
5.4544% due 12/25/2035 (b)***		2,586,971		2,587,193
Wachovia Auto Owner Trust, Series 2005-B, Class
A2
4.82% due 02/20/2009 ***		2,330,856		2,325,029

TOTAL ASSET BACKED SECURITIES
(Cost $61,716,918)			$	61,723,528


OPTIONS - 0.41%
Call Options - 0.40%
Over The Counter European Style Call
Expiration 07/02/2007 at $3.96 *		33,000,000		241,015
Expiration 07/02/2007 at $3.96 *		10,000,000		73,035
Expiration 07/02/2007 at $3.96 *		21,000,000		153,373
Expiration 07/02/2007 at $4.10 *		22,000,000		197,226
Expiration 12/22/2006 at $4.80 *		29,000,000		16,849
Expiration 03/08/2007 at $5.00 *		30,000,000		86,910
Expiration 03/08/2007 at $5.00 *		16,000,000		46,352
Expiration 02/01/2007 at $5.17 *		27,500,000		109,246
Expiration 05/23/2007 at $5.20 *		52,000,000		316,108
Expiration 05/09/2007 at $5.20 *		61,300,000		370,470
Expiration 06/07/2007 at $5.25 *		53,000,000		375,264
Expiration 06/07/2007 at $5.25 *		10,000,000		70,804
Expiration 07/02/2007 at $5.25 *		142,000,000		1,058,958
Expiration 07/02/2007 at $5.37 *		110,700,000		984,426
Expiration 06/30/2007 at $5.50 *		52,000,000		549,951

				4,649,987
Put Options - 0.01%
Chicago Mercantile Exchange American Purchase
Put on Eurodollar
Expiration 09/17/2007 at $90.75 *		1,030,000		2,575

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


OPTIONS (continued)
Put Options (continued)
Chicago Mercantile Exchange American Purchase
Put on Eurodollar (continued)
Expiration 06/18/2007 at $91.00 *		1,915,000	$	4,788
Expiration 06/18/2007 at $91.25 *		3,637,500		9,094
Expiration 09/17/2007 at $91.25 *		1,642,500		4,106
Expiration 12/18/2006 at $92.00 *		2,650,000		6,625
Expiration 03/19/2007 at $92.00 *		680,000		1,700
Expiration 12/18/2006 at $92.25 *		1,737,500		4,344
Expiration 09/18/2006 at $92.50 *		2,290,000		5,725
Expiration 12/18/2006 at $92.75 *		635,000		1,587
Expiration 12/18/2006 at $93.375 *		222,500		556
Expiration 09/18/2006 at $94.00 *		635,000		1,587
Expiration 12/18/2006 at $94.125 *		1,025,000		2,563

				45,250

TOTAL OPTIONS (Cost $3,143,545)			$	4,695,237


SHORT TERM INVESTMENTS - 38.61%
Bank of America Corp.
5.275% due 12/01/2006 ***	$	23,400,000	$	23,087,984
Barclays Bank PLC NY
5.491% due 01/29/2007 ***		10,200,000		10,199,315
Barclays U.S. Funding LLC
5.405% due 10/20/2006 ***		23,200,000		23,029,322
Cox Communications, Inc.
4.00% due 01/16/2007 ***		2,000,000		2,000,000
Danske Corp.
5.265% due 12/27/2006 ***		600,000		589,733
5.34% due 09/05/2006 ***		3,600,000		3,597,864
5.37% due 10/30/2006 ***		30,700,000		30,429,814
Government of France
zero coupon due 09/28/2006 to
12/21/2006 ***	EUR	25,230,000		32,087,651
Federal Republic of Germany, Series 0506
zero coupon due 09/13/2006 to
11/15/2006 ***		65,360,000		83,388,763
Government of France
zero coupon due 09/14/2006 ***		38,340,000		48,998,688
Ixis Corp.
5.26% due 09/07/2006 ***	$	31,200,000		31,172,648
Kingdom of Belgium
zero coupon due 10/12/2006 ***	EUR	840,000		1,071,202
Rabobank USA Finance Corp.
5.27% due 09/01/2006 ***	$	16,300,000		16,300,000
Societe Generale North America, Inc.
5.26% due 12/01/2006 ***		31,700,000		31,278,513
5.38% due 10/12/2006 ***		600,000		596,324
Spain Letras del Tesoro
zero coupon due 12/22/2006 ***	EUR	4,300,000		5,451,313
State Street Navigator Securities
Lending Prime Portfolio (c)	$	28,221,891		28,221,891
Total SA
5.26% due 09/01/2006 ***		31,800,000		31,800,000
UBS Finance (Delaware) LLC
5.26% due 09/01/2006 ***		8,800,000		8,800,000
5.28% due 11/16/2006 ***		2,800,000		2,768,789

The accompanying notes are an integral part of the financial statements. 404

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Total Return Fund (continued)
		Shares or
		Principal
		Amount		Value


SHORT TERM INVESTMENTS (continued)
UBS Finance (Delaware) LLC (continued)
5.375% due 10/11/2006 to
10/26/2006 ***	$	23,400,000	$	23,236,286
United States Treasury Bills
zero coupon due 09/14/2006 to
11/30/2006 * **		7,825,000		7,764,891
Viacom, Inc.
5.594% due 05/29/2007 ***		1,700,000		1,700,000

TOTAL SHORT TERM INVESTMENTS
(Cost $445,618,548)			$	447,570,991


REPURCHASE AGREEMENTS - 4.03%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$46,748,129 on 09/01/2006,
collateralized by $47,500,000
Federal Home Loan Mortgage
Corp., 2.75% due 12/28/2006
(valued at $47,678,125, including
interest) (c)	$	46,743,000	$	46,743,000

TOTAL REPURCHASE AGREEMENTS
(Cost $46,743,000)			$	46,743,000

Total Investments (Total Return Fund)
(Cost $1,496,888,257) - 129.61%			$	1,502,531,534
Liabilities in Excess of Other Assets - (29.61)%				(343,256,842)

TOTAL NET ASSETS - 100.00%			$	1,159,274,692



U.S. Global Leaders Growth Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 99.10%
Biotechnology - 9.98%
Amgen, Inc. *		348,840	$	23,696,701
Genzyme Corp. *		360,907		23,902,871

				47,599,572

Business Services - 5.04%
Automatic Data Processing, Inc.		508,848		24,017,626
Computers & Business Equipment - 2.93%
Dell, Inc. *		620,270		13,987,089
Cosmetics & Toiletries - 8.27%
Colgate-Palmolive Company		309,167		18,506,737
Procter & Gamble Company		338,360		20,944,484

				39,451,221

Financial Services - 3.95%
State Street Corp. (c)		305,164		18,859,135
Food & Beverages - 15.51%
PepsiCo, Inc.		363,400		23,722,752
Starbucks Corp. *		540,712		16,767,479
Sysco Corp.		495,743		15,561,373

U.S. Global Leaders Growth Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Food & Beverages (continued)
The Coca-Cola Company		400,625	$	17,952,006

				74,003,610
Healthcare Products - 8.45%
Johnson & Johnson		222,344		14,376,763
Medtronic, Inc.		298,582		14,003,496
Stryker Corp.		248,000		11,911,440

				40,291,699
Holdings Companies/Conglomerates - 4.89%
General Electric Company		684,799		23,324,254
Insurance - 3.48%
American International Group, Inc.		259,914		16,587,712
Internet Retail - 3.38%
eBay, Inc. *		578,697		16,122,498
Leisure Time - 2.28%
Electronic Arts, Inc. *		213,796		10,897,182
Pharmaceuticals - 4.16%
Teva Pharmaceutical Industries, Ltd., SADR (a)		571,073		19,850,497
Retail Grocery - 0.99%
Whole Foods Market, Inc.		88,000		4,718,560
Retail Trade - 12.79%
Costco Wholesale Corp.		347,119		16,241,698
Home Depot, Inc.		506,143		17,355,643
Staples, Inc.		1,018,921		22,986,858
Wal-Mart Stores, Inc.		99,214		4,436,850

				61,021,049
Software - 7.08%
Microsoft Corp.		942,806		24,220,686
SAP AG, SADR		200,000		9,548,000

				33,768,686
Telecommunications Equipment &
Services - 2.99%
QUALCOMM, Inc.		378,000		14,239,260
Trucking & Freight - 2.93%
United Parcel Service, Inc., Class B		199,280		13,959,564

TOTAL COMMON STOCKS (Cost $487,321,730)			$	472,699,214


SHORT TERM INVESTMENTS - 0.59%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	2,825,622	$	2,825,622

TOTAL SHORT TERM INVESTMENTS
(Cost $2,825,622)			$	2,825,622

The accompanying notes are an integral part of the financial statements. 405

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Global Leaders Growth Fund (continued)
		Shares or
		Principal
		Amount		Value


REPURCHASE AGREEMENTS - 1.13%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$5,402,593 on 09/01/2006,
collateralized by $5,910,000
Federal National Mortgage
Association, 5.55% due
07/10/2028 (valued at $5,511,826,
including interest) (c)	$	5,402,000	$	5,402,000

TOTAL REPURCHASE AGREEMENTS
(Cost $5,402,000)			$	5,402,000

Total Investments (U.S. Global Leaders Growth Fund)
(Cost $495,549,352) - 100.82%			$	480,926,836
Liabilities in Excess of Other Assets - (0.82)%				(3,913,010)

TOTAL NET ASSETS - 100.00%			$	477,013,826



U.S. Government Securities Fund
		Shares or
		Principal
		Amount		Value


U.S. TREASURY OBLIGATIONS - 19.71%
U.S. Treasury Bonds - 0.08%
6.625% due 02/15/2027 ****	$	128,000	$	155,410
U.S. Treasury Notes - 19.63%
3.375% due 10/15/2009		2,574,000		2,475,465
3.375% due 11/15/2008 ****		926,000		899,414
3.50% due 05/31/2007 ***		10,171,000		10,056,179
4.00% due 04/15/2010 to 02/15/2014 ***		8,220,000		7,963,235
4.25% due 08/15/2015		445,000		429,216
4.875% due 07/31/2011		18,000,000		18,133,596

				39,957,105

TOTAL U.S. TREASURY OBLIGATIONS
(Cost $40,146,621)			$	40,112,515


U.S. GOVERNMENT AGENCY OBLIGATIONS - 81.34%
Federal Home Loan Bank - 1.06%
5.80% due 09/02/2008 ***		2,145,000		2,170,007
Federal Home Loan Mortgage Corp. - 2.92%
5.00% due 08/01/2033		1,687,722		1,624,610
5.00% TBA **		3,000,000		2,875,314
6.00% due 10/01/2010 to 12/01/2028		538,416		542,287
6.50% due 12/01/2010 ***		36,872		37,021
7.00% due 02/01/2011 to 06/01/2032		779,150		800,049
7.50% due 05/01/2007 ***		3,360		3,377
9.00% due 10/01/2017		12,113		12,388
9.50% due 08/01/2020		27,112		29,544
11.75% due 12/01/2013		1,396		1,539
12.00% due 07/01/2020		9,341		10,131

				5,936,260
Federal National Mortgage
Association - 65.26%
5.00% TBA **		45,300,000		43,548,577

U.S. Government Securities Fund (continued)
		Shares or
		Principal
		Amount		Value


U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal National Mortgage
Association (continued)
5.3067% due 02/17/2009 (b)***	$	1,544,000	$	1,501,540
5.50% due 04/01/2018		657,327		656,230
5.50% due 05/01/2018 ***		1,508,484		1,505,967
5.50% TBA **		43,000,000		42,388,750
6.00% TBA **		33,560,000		33,584,162
6.50% due 02/01/2026 to 06/01/2029		322,914		329,545
6.50% due 07/01/2032 ***		1,540,009		1,581,451
6.50% TBA **		5,000,000		5,075,000
6.527% due 05/25/2030 (b)		676,296		679,311
7.00% due 07/01/2022 to 01/01/2034		944,122		971,525
7.50% due 09/01/2029 to 02/01/2031		153,153		158,644
8.00% due 06/01/2017 to 03/01/2033		423,067		447,778
8.25% due 09/01/2008 ***		1,274		1,288
8.50% due 08/01/2019		152,214		162,112
8.50% due 02/01/2009 ***		545		555
8.75% due 08/01/2009 to 12/01/2009		27,489		27,894
8.75% due 10/01/2011 ***		98		98
9.00% due 05/01/2021		8,070		8,688
11.50% due 09/15/2013 to 09/01/2019		32,012		35,147
12.00% due 01/01/2013 to 04/20/2016		90,503		101,622
12.50% due 01/01/2013 to 09/20/2015		44,010		48,308
13.50% due 11/15/2014		23,695		26,398

				132,840,590
Government National Mortgage
Association - 12.10%
5.50% TBA **		8,100,000		8,021,527
6.00% TBA **		15,600,000		15,741,367
6.50% due 02/15/2034 to 09/15/2034		452,426		462,726
7.50% due 03/15/2026 to 12/15/2027		208,520		217,669
7.50% due 08/15/2027 ***		37		39
8.50% due 06/15/2025		180,394		194,854
11.00% due 09/15/2015		673		745

				24,638,927

TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $164,950,965)			$	165,585,784


COLLATERALIZED MORTGAGE
OBLIGATIONS - 26.00%
American Home Mortgage Assets, Series 2006-3,
Class 3A12
5.5144% due 10/25/2046 (b)***		1,902,892		1,902,446
American Home Mortgage Investment Trust, Series
2006-2, Class 1A1
5.4044% due 06/25/2046 (b)***		1,864,194		1,865,346
Bear Stearns Alt-A Trust, Series 2004-11, Class 2A2
4.951% due 11/25/2034 (b)***		1,873,617		1,894,110
Countrywide Alternative Loan Trust, Series
2005-17, Class 2A1
5.5644% due 07/25/2035 (b)***		786,239		788,501
Countrywide Alternative Loan Trust, Series
2005-59, Class 1A1
5.655% due 11/20/2035 (b)***		564,541		566,411

The accompanying notes are an integral part of the financial statements. 406

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Government Securities Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Countrywide Alternative Loan Trust, Series
2006-OA10, Class 4A1
5.5144% due 08/25/2046 (b)***	$	1,890,157	$	1,889,641
Countrywide Alternative Loan Trust, Series
2006-OA11, Class A4
5.5144% due 09/25/2046 (b)***		1,876,198		1,876,611
Countrywide Alternative Loan Trust, Series
2006-OA7, Class 3A1
5.595% due 06/25/2046 (b)***		1,639,672		1,639,672
Countrywide Alternative Loan Trust, Series
2006-OA9, Class 1A1
5.525% due 07/20/2046 (b)***		1,891,442		1,891,896
Countrywide Alternative Loan Trust, Series
2006-OA9, Class 2A1B
5.525% due 07/20/2046 (b)***		1,875,576		1,875,604
Countrywide Alternative Loan Trust, Series
2006-OC2, Class 2A3
5.6144% due 02/25/2036 (b)***		1,000,000		1,001,100
Countrywide Home Loans, Series 2006-OA5, Class
1A1
5.5244% due 04/25/2046 (b)***		1,166,426		1,167,019
Federal Home Loan Mortgage Corp.,
Series 2525, Class AM
4.50% due 04/15/2032		240,246		216,202
Federal Home Loan Mortgage Corp.,
Series 2686, Class QI
5.50% due 01/15/2023 ***		2,666,057		70,675
Federal National Mortgage Association Whole
Loan, Series 2005-W3, Class 2AF
5.5444% due 03/25/2045 (b)		755,994		757,269
Federal National Mortgage Association Whole
Loan, Series 2003-W14, Class 2A
5.4707% due 01/25/2043 (b)***		1,296,042		1,322,363
Harborview Mortgage Loan Trust, Series 2005-7,
Class 1A1
5.734% due 06/19/2045 (b)***		849,897		849,897
Impac CMB Trust, Series 2004-5, Class 1A1
5.6844% due 10/25/2034 (b)***		1,630,207		1,632,157
Impac Secured Assets Corp., Series 2005-2, Class
A1
5.6444% due 03/25/2036 (b)***		1,671,434		1,674,543
Lehman XS Trust, Series 2006-2N, Class 1A1
5.5844% due 02/25/2046 (b)***		1,806,442		1,809,935
Lehman XS Trust, Series 2006-GP3, Class 3A1A
5.3944% due 06/25/2046 (b)***		1,865,232		1,863,832
Lehman XS Trust, Series 2006-GP4, Class 3A1A
5.3944% due 08/25/2046 (b)***		1,900,756		1,899,983
Luminent Mortgage Trust, Series 2006-4, Class A1A
5.5144% due 05/25/2046 (b)***		1,796,270		1,793,713
Master Adjustable Rate Mortgages Trust, Series
2004-15, Class 1A1
4.6079% due 12/25/2034 (b)		328,529		330,247
Morgan Stanley Mortgage Loan Trust, Series
2006-8AR, Class 1A2
5.3944% due 06/25/2036 (b)***		1,730,560		1,731,264

U.S. Government Securities Fund (continued)
		Shares or
		Principal
		Amount		Value


COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Novastar Mortgage-Backed Notes, Series
2006-MTA1, Class 2A1A
5.5144% due 09/25/2046 (b)***	$	1,844,599	$	1,844,775
RAAC Series, Series 2006-RP3, Class A
5.5944% due 05/25/2036 (b)		2,072,598		2,077,455
Structured Asset Mortgage Investments, Inc.,
Series 2006-AR6, Class 1A1
5.5044% due 07/25/2036 (b)		1,893,211		1,893,665
Structured Asset Mortgage Investments, Inc.,
Series 2006-AR7, Class A1A
5.54% due 08/25/2036 (b)		1,900,000		1,899,480
Thornburg Mortgage Securities Trust, Series
2005-3, Class A3
5.5844% due 10/25/2035 (b)		1,755,610		1,757,755
Thornburg Mortgage Securities Trust, Series
2005-4, Class A4
5.524% due 12/25/2035 (b)		1,925,043		1,928,164
Thornburg Mortgage Securities Trust, Series
2006-3, Class A2
5.4294% due 06/25/2036 (b)		1,865,624		1,861,994
Thornburg Mortgage Securities Trust, Series
2006-3, Class A3
5.4344% due 06/25/2036 (b)		1,869,494		1,872,740
Washington Mutual, Inc., Series 2005-AR17, Class
A1A1
5.5944% due 12/25/2045 (b)***		1,687,043		1,692,445
Zuni Mortgage Loan Trust, Series 2006-OA1, Class
A1
5.615% due 08/25/2036 (b)		1,792,568		1,790,326

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $52,896,576)			$	52,929,236


ASSET BACKED SECURITIES - 21.71%
ACE Securities Corp., Series 2006-GP1, Class A
5.4544% due 02/25/2031 (b)***		1,739,614		1,739,598
ACE Securities Corp., Series 2006-SL3, Class A1
5.4244% due 06/25/2036 (b)***		1,746,127		1,746,277
Aegis Asset Backed Securities Trust, Series
2004-2, Class A3
5.8044% due 06/25/2034 (b)***		1,061,774		1,062,770
AmeriCredit Automobile Receivables Trust, Series
2003-BX, Class A4B
5.8762% due 01/06/2010 (b)***		567,223		567,849
Amortizing Residential Collateral Trust, Series
2001-BC6, Class A
5.6744% due 10/25/2031 (b)***		988,032		989,136
Carrington Mortgage Loan Trust, Series 2005-NC5,
Class A1
5.4444% due 10/25/2035 (b)***		1,111,993		1,112,184
CIT Equipment Collateral, Series 2006-VT1, Class
A2
5.13% due 03/20/2008		1,000,000		997,909
Countrywide Asset-Backed Certificates, Series
2002-BC2, Class A
5.8644% due 04/25/2032 (b)***		631,711		631,956

The accompanying notes are an integral part of the financial statements. 407

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Government Securities Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Countrywide Home Equity Loan Trust, Series
2004-I, Class A
5.62% due 02/15/2034 (b)***	$	1,601,133	$	1,605,870
Countrywide Home Equity Loan Trust, Series
2005-E, Class 2A
5.55% due 11/15/2035 (b)***		579,712		580,799
Countrywide Home Equity Loan Trust, Series
2006-E, Class 2A
5.47% due 07/15/2036 (b)***		1,803,385		1,803,889
Countrywide Home Equity Loan Trust, Series
2006-RES, Class 4E1B
5.59% due 06/15/2029 (b)***		1,811,057		1,813,320
Countrywide Home Equity Loan Trust, Series
2006-RES, Class 4F1B
5.59% due 05/15/2034 (b)***		1,815,648		1,817,917
Credit Suisse Mortgage Capital Certificates, Series
2006-CF2, Class A1
5.5844% due 05/25/2036 (b)***		1,646,551		1,650,154
GMAC Mortgage Corp. Loan Trust, Series
2006-HE1, Class A
5.5344% due 11/25/2036 (b)***		1,900,000		1,900,402
GSAA Home Equity Trust, Series 2005-5, Class A4
5.5944% due 02/25/2035 (b)***		1,900,000		1,905,641
GSAMP Trust, Series 2006-S4, Class A1
5.475% due 05/25/2036 (b)***		2,550,812		2,550,947
IndyMac Seconds Asset Backed Trust, Series
2006-A, Class A
5.4544% due 06/25/2036 (b)***		1,738,212		1,738,199
Long Beach Mortgage Loan Trust, Series 2005-3,
Class 2A2
5.6044% due 09/25/2035 (b)***		1,900,000		1,903,812
Morgan Stanley ABS Capital I, Series 2005-WMC2,
Class A1MZ
5.5744% due 02/25/2035 (b)***		1,221,976		1,222,548
Morgan Stanley ABS Capital I, Series 2005-WMC3,
Class A1MZ
5.5844% due 03/25/2035 (b)***		1,142,300		1,142,644
Morgan Stanley ABS Capital I, Series 2005-WMC4,
Class A1MZ
5.5844% due 04/25/2035 (b)***		1,400,942		1,404,129
Morgan Stanley IXIS Real Estate Capital Trust,
Series 2006-1, Class A1
5.3544% due 07/25/2036 (b)***		1,756,576		1,756,563
Morgan Stanley Mortgage Loan Trust, Series
2006-4SL, Class A1
5.4744% due 03/25/2036 (b)***		1,551,856		1,552,290
SACO I Trust, Inc., Series 2006-6, Class A
5.4544% due 06/25/2036 (b)***		1,703,170		1,703,156
SACO I Trust, Inc., Series 2006-7, Class A1
5.515% due 07/25/2036 (b)		1,783,277		1,783,262
SLM Student Loan Trust, Series 2006-5, Class A2
5.429% due 07/25/2017 (b)***		1,900,000		1,899,704
Structured Asset Securities Corp., Series
2006-ARS1, Class A1
5.4344% due 02/25/2036 (b)***		1,753,229		1,753,777

U.S. Government Securities Fund (continued)
		Shares or
		Principal
		Amount		Value


ASSET BACKED SECURITIES
(continued)
Truman Capital Mortgage Loan Trust, Series
2006-1, Class A
5.66% due 03/25/2036 (b)	$	1,848,780	$	1,848,909

TOTAL ASSET BACKED SECURITIES
(Cost $44,178,519)			$	44,185,611


REPURCHASE AGREEMENTS - 25.54%
Merrill Lynch Tri-Party Repurchase
Agreement dated 08/31/2006 at
5.23% to be repurchased at
$52,007,555 on 09/01/2006,
collateralized by $51,995,000 U.S.
Treasury Notes, 0.875% due
04/15/2010 (valued at
$53,211,837, including interest) ***	$	52,000,000	$	52,000,000

TOTAL REPURCHASE AGREEMENTS
(Cost $52,000,000)			$	52,000,000

Total Investments (U.S. Government Securities Fund)
(Cost $354,172,681) - 174.30%			$	354,813,146
Liabilities in Excess of Other Assets - (74.30)%				(151,248,377)

TOTAL NET ASSETS - 100.00%			$	203,564,769



U.S. High Yield Bond Fund
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS - 92.12%
Advertising - 1.43%
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016	$	900,000	$	886,500
Sheridan Group, Inc.
10.25% due 08/15/2011		1,500,000		1,511,250
Vertis, Inc.
9.75% due 04/01/2009		1,717,000		1,738,463

				4,136,213

Aerospace - 0.21%
Sequa Corp., Series B
8.875% due 04/01/2008		600,000		624,000
Apparel & Textiles - 0.40%
Levi Strauss & Company
12.25% due 12/15/2012		750,000		840,000
Phillips-Van Heusen
7.25% due 02/15/2011		325,000		324,188

				1,164,188

Auto Parts - 0.81%
ArvinMeritor, Inc.
8.75% due 03/01/2012 (a)		450,000		438,750
Delphi Corp.
13.250% due 06/14/2011 (b)(f)		1,000,000		1,034,690
TRW Automotive, Inc.
9.375% due 02/15/2013		600,000		640,500

The accompanying notes are an integral part of the financial statements. 408

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Auto Parts (continued)
Visteon Corp.
8.61% due 06/12/2013 (b)(f)	$	250,000	$	249,062

				2,363,002

Auto Services - 0.82%
Hertz Corp., Class A
8.875% due 01/01/2014		500,000		518,750
10.50% due 01/01/2016 (a)		225,000		242,438
Penhall International Corp.
12.00% due 08/01/2014 (a)		1,600,000		1,632,000

				2,393,188

Automobiles - 2.11%
Asbury Automotive Group, Inc.
9.00% due 06/15/2012		900,000		911,250
AutoNation, Inc.
7.5069% due 04/15/2013 (b)		200,000		201,000
Avis Budget Car Rental LLC
6.750% due 04/17/2012 (b)(f)		978,571		971,722
CSK Automotive, Inc.
8.542% due 06/30/2012 (b)(f)		500,000		502,190
Dana Corp.
7.220% due 03/03/2008 (b)(f)		170,000		169,716
Ford Motor Company
7.45% due 07/16/2031 (a)		575,000		451,375
General Motors Corp.
8.375% due 07/15/2033		1,900,000		1,591,250
Group 1 Automotive, Inc.
8.25% due 08/15/2013		85,000		85,956
Sonic Automotive, Inc., Series B
8.625% due 08/15/2013		1,258,000		1,248,565

				6,133,024

Banking - 0.31%
Chevy Chase Bank
6.875% due 12/01/2013		900,000		895,500
Broadcasting - 1.14%
Barrington Broadcasting
10.50% due 08/15/2014		2,000,000		1,960,000
Fisher Communications, Inc.
8.625% due 09/15/2014		1,300,000		1,335,750

				3,295,750

Building Materials & Construction - 0.83%
Atrium Company, Inc.
8.08% due 05/31/2012 (b)(f)		534,353		515,651
Atrium Company, Inc., Tranche DD VA
8.25% due 05/31/2012 (b)(f)		65,647		65,647
Brand Services, Inc.
12.00% due 10/15/2012		311,000		350,086
Masonite International
7.49% due 04/06/2013 (b)(f)		992,462		974,350
Quality Home Brands Holdings Corp., Tranche 2nd
Lien
11.939% due 06/16/2013 (b)(f)		500,000		504,375

				2,410,109

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Business Services - 2.88%
Cornell Companies, Inc.
10.75% due 07/01/2012	$	600,000	$	637,500
Education Management Corp., Tranche C
8.063% due 05/24/2013 (b)(f)		1,000,000		1,004,380
Rural/Metro Corp.
9.875% due 03/15/2015		1,550,000		1,588,750
SunGard Data Systems, Inc.
3.75% due 01/15/2009 (a)		125,000		116,250
4.875% due 01/15/2014		600,000		517,500
9.125% due 08/15/2013		1,600,000		1,652,000
10.25% due 08/15/2015		1,750,000		1,787,188
Williams Scotsman International, Inc.
8.50% due 10/01/2015		1,045,000		1,060,675

				8,364,243
Cable and Television - 7.24%
Charter Communications Holdings LLC
8.75% due 11/15/2013 (a)		600,000		600,000
Charter Communications Operating LLC
8.00% due 04/30/2012		1,925,000		1,929,812
8.375% due 04/30/2014		5,650,000		5,706,500
9.4544% due 12/15/2010		600,000		615,000
CSC Holdings, Inc.
7.218% due 03/23/2013 (b)(f)		2,497,500		2,484,738
7.25% due 07/15/2008		600,000		606,750
7.875% due 12/15/2007		1,200,000		1,222,500
DirecTV Holdings LLC
6.375% due 06/15/2015		3,900,000		3,646,500
8.375% due 03/15/2013		430,000		451,500
EchoStar DBS Corp.
7.125% due 02/01/2016		2,000,000		1,947,500
Videotron Ltee
6.375% due 12/15/2015		950,000		889,438
6.875% due 01/15/2014		915,000		897,844

				20,998,082
Cellular Communications - 5.68%
Alamosa Delaware, Inc.
8.50% due 01/31/2012		2,830,000		2,999,800
Centennial Communications Corp.
8.125% due 02/01/2014		403,000		391,917
10.00% due 01/01/2013 (a)		2,025,000		2,019,937
10.75% due 12/15/2008 (a)		33,000		33,330
Dobson Cellular Systems, Inc.
8.375% due 11/01/2011 (a)		759,000		785,565
8.375% due 11/01/2011		1,500,000		1,552,500
8.875% due 10/01/2013 (a)		3,350,000		3,308,125
9.875% due 11/01/2012 (a)		800,000		854,000
Rural Cellular Corp.
8.25% due 03/15/2012		400,000		410,000
8.25% due 03/15/2012		1,100,000		1,127,500
9.875% due 02/01/2010 (a)		1,750,000		1,806,875
Telcordia Technologies, Inc.
10.00% due 03/15/2013		725,000		578,188

The accompanying notes are an integral part of the financial statements. 409

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Cellular Communications (continued)
UbiquiTel Operating Company
9.875% due 03/01/2011	$	550,000	$	598,125

				16,465,862
Chemicals - 0.62%
Chemtura Corp.
6.875% due 06/01/2016		725,000		701,438
Equistar Chemicals LP
10.125% due 09/01/2008		250,000		263,750
Huntsman International LLC
7.375% due 01/01/2015		325,000		322,562
Lyondell Chemical Company, Series A
9.625% due 05/01/2007		500,000		510,000

				1,797,750
Commercial Services - 1.05%
Mac-Gray Corp.
7.625% due 08/15/2015		2,250,000		2,283,750
Safety-Kleen, Inc., Letter of Credit
7.938% due 07/27/2013 (b)(f)		165,254		165,461
Safety-Kleen, Inc., Tranche B
7.938% due 07/27/2013 (b)(f)		584,746		585,476

				3,034,687
Containers & Glass - 1.00%
Crown Holdings, Inc.
7.00% due 12/15/2006		125,000		125,000
8.00% due 04/15/2023		1,025,000		968,625
Graham Packaging Company
8.50% due 10/15/2012		600,000		580,500
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		1,200,000		1,215,000

				2,889,125
Correctional Facilities - 0.31%
Corrections Corp. of America
6.25% due 03/15/2013		600,000		579,750
6.75% due 01/31/2014		335,000		330,813

				910,563
Crude Petroleum & Natural Gas - 2.16%
AmeriGas Partners LP
7.125% due 05/20/2016		770,000		748,825
7.25% due 05/20/2015		75,000		73,687
Chesapeake Energy Corp.
6.50% due 08/15/2017		500,000		463,750
6.625% due 01/15/2016		400,000		384,000
6.875% due 01/15/2016		600,000		582,000
6.875% due 11/15/2020		250,000		235,625
7.50% due 09/15/2013 (a)		800,000		808,000
7.75% due 01/15/2015 (a)		140,000		142,800
Hanover Equipment Trust, Series A
8.50% due 09/01/2008		500,000		508,750
Massey Energy Company
6.875% due 12/15/2013 (a)		670,000		621,425
PetroHawk Energy Corp.
9.125% due 07/15/2013		800,000		814,000

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas
(continued)
Tesoro Corp.
6.625% due 11/01/2015	$	900,000	$	868,500

				6,251,362
Domestic Oil - 1.04%
ALON USA LP
7.906% due 06/07/2013 (b)(f)		1,000,000		1,008,750
Eagle Rock Energy, Inc.
7.490% due 12/01/2012 (b)(f)		370,064		370,064
Petroleum Geo-Services, Tranche B
8.000% due 12/16/2012 (b)(f)		375,662		378,479
Petroquest Energy Inc
10.375% due 05/15/2012		1,200,000		1,248,000

				3,005,293
Electrical Utilities - 0.53%
Nevada Power Company
5.95% due 03/15/2016		250,000		247,298
Sierra Pacific Power Company
6.00% due 05/15/2016		375,000		372,219
Sierra Pacific Resources
8.625% due 03/15/2014		850,000		913,673

				1,533,190
Electronics - 0.69%
Communications & Power Industries, Inc.
8.00% due 02/01/2012		710,000		715,325
L-3 Communications Corp.
5.875% due 01/15/2015		600,000		567,000
6.125% due 07/15/2013		7,000		6,738
L-3 Communications Corp., Series B
6.375% due 10/15/2015		750,000		721,875

				2,010,938
Energy - 2.95%
Chesapeake Energy Corp.
7.50% due 06/15/2014		1,355,000		1,365,162
Covanta Energy Corp., 1st Lien
8.081% due 06/24/2012 (b)(f)		626,180		629,311
Covanta Energy Corp., Letter of Credit
4.960% due 06/24/2012 (b)(f)		873,820		878,189
NRG Energy, Inc.
7.17% due 02/02/2013 (b)(f)		1,496,250		1,502,205
7.25% due 02/01/2014		500,000		493,750
7.375% due 02/01/2016		2,800,000		2,758,000
Plum Point Energy Associates LLC, Letter of Credit
7.167% due 03/15/2014 (b)(f)		194,286		195,743
Plum Point Energy Associates LLC, Tranche 1
8.749% due 03/15/2014 (b)(f)		715,677		719,255

				8,541,615
Financial Services - 8.42%
BLB Hold-Wembley Term Loan
7.83% due 06/30/2011 (b)(f)		275,000		277,923
Consolidated Communications Holdings
9.75% due 04/01/2012		96,000		100,560
Dow Jones CDX HY, Series 6-T1
8.625% due 06/29/2011		7,000,000		6,991,250

The accompanying notes are an integral part of the financial statements. 410

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Financial Services (continued)
El Paso Performance-Linked Trust
7.75% due 07/15/2011	$	850,000	$	865,937
Ford Motor Credit Company
7.00% due 10/01/2013 (a)		1,775,000		1,656,604
7.25% due 10/25/2011		430,000		410,950
General Motors Acceptance Corp.
6.75% due 12/01/2014 (a)		800,000		766,950
8.00% due 11/01/2031 (a)		4,210,000		4,255,005
Linsco Private Ledger Holding
8.746% due 06/27/2013 (b)(f)		1,741,250		1,758,662
NASDAQ Stock Market, Inc., Tranche B
7.249% due 04/18/2012 (b)(f)		623,240		622,854
NASDAQ Stock Market, Inc., Tranche C
7.249% due 04/18/2012 (b)(f)		361,278		361,278
PCA LLC
11.875% due 08/01/2009 ^		95,000		19,475
Stripes Acquisition LLC
10.625% due 12/15/2013		160,000		168,000
Thornburg Mortgage, Inc.
8.00% due 05/15/2013		500,000		490,000
TRAINS HY-1-2006
7.548% due 05/01/2016		1,200,000		1,189,956
VNU, Inc., Tranche B
8.19% due 08/07/2013 (b)(f)		4,500,000		4,476,105

				24,411,509
Food & Beverages - 2.32%
Del Monte Corp.
8.625% due 12/15/2012		1,413,000		1,478,351
Dole Food Company
6.341% due 04/11/2013 (b)(f)		997,733		981,160
Dole Food, Inc.
7.25% due 06/15/2010 (a)		1,440,000		1,350,000
8.875% due 03/15/2011 (a)		950,000		926,250
SUPERVALU, Inc., Tranche B
7.063% due 05/30/2012 (b)(f)		1,995,000		1,990,851

				6,726,612
Funeral Services - 0.55%
Service Corp. International
6.50% due 03/15/2008		600,000		600,000
7.00% due 06/15/2017		1,025,000		981,438
7.70% due 04/15/2009 (a)		25,000		25,562

				1,607,000
Gas & Pipeline Utilities - 3.38%
Colorado Interstate Gas Company
6.80% due 11/15/2015		375,000		371,650
El Paso Corp.
6.75% due 05/15/2009 (a)		425,000		425,000
7.42% due 02/15/2037		250,000		236,250
7.625% due 08/16/2007 (a)		200,000		202,500
7.75% due 01/15/2032 (a)		2,525,000		2,537,625
7.875% due 06/15/2012 (a)		1,950,000		2,013,375
El Paso Corp., Series MTN
7.375% due 12/15/2012		550,000		554,812

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
Northwest Pipeline Corp.
7.00% due 06/15/2016	$	250,000	$	252,813
Pacific Energy Partners LP
6.25% due 09/15/2015		300,000		293,250
Targa Resources, Inc.
7.750% due 10/31/2012 (b)(f)		476,240		477,283
Transmontaigne, Inc.
9.125% due 06/01/2010		750,000		801,345
Williams Companies, Inc.
7.5081% due 10/01/2010 (b)		500,000		505,000
8.75% due 03/15/2032		1,050,000		1,131,375

				9,802,278

Healthcare Products - 0.46%
Accellent, Inc.
10.50% due 12/01/2013		1,299,000		1,341,218
Healthcare Services - 1.56%
Ameripath, Inc.
10.50% due 04/01/2013		1,084,000		1,146,330
DaVita, Inc.
6.625% due 03/15/2013		475,000		463,125
Healthsouth Corp.
10.75% due 06/15/2016 (a)		1,125,000		1,150,313
Healthsouth Corp., Tranche B
8.520% due 03/10/2013 (b)(f)		1,750,000		1,751,977

				4,511,745

Hotels & Restaurants - 2.81%
Aztar Corp.
9.00% due 08/15/2011 (a)		75,000		78,375
Buffets, Inc.
11.25% due 07/15/2010		1,390,000		1,466,450
Denny's Corp.
10.00% due 10/01/2012 (a)		975,000		982,312
Gaylord Entertainment Company
6.75% due 11/15/2014		1,005,000		954,750
O'Charleys, Inc.
9.00% due 11/01/2013		2,550,000		2,601,000
Real Mex Restaurants, Inc.
10.00% due 04/01/2010		2,000,000		2,080,000

				8,162,887

Household Appliances - 0.51%
ALH Finance LLC
8.50% due 01/15/2013 (a)		1,400,000		1,368,500
Fedders North America, Inc.
9.875% due 03/01/2014 (a)		175,000		120,750

				1,489,250

Industrial Machinery - 1.01%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		1,250,000		1,268,750
JLG Industries, Inc.
8.25% due 05/01/2008		1,600,000		1,648,000

				2,916,750

The accompanying notes are an integral part of the financial statements. 411

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Leisure Time - 7.29%
AMC Entertainment, Inc., Series B
8.625% due 08/15/2012	$	1,057,000	$	1,083,425
Aztar Corp.
7.875% due 06/15/2014		575,000		621,000
Bombardier Recreational Products, Inc., Tranche B
8.24% due 06/26/2013 (b)(f)		850,000		848,411
Chukchansi Economic Development Authority
8.00% due 11/15/2013		1,203,000		1,215,030
8.06% due 11/15/2012		125,000		128,750
Cinemark, Inc.
9.00% due 02/01/2013		1,000,000		1,035,000
Hard Rock Hotel, Inc.
8.875% due 06/01/2013		495,000		531,506
Majestic Star Casino LLC
9.50% due 10/15/2010		750,000		771,563
Mandalay Resort Group
6.50% due 07/31/2009 (a)		350,000		346,938
MGM Mirage, Inc.
5.875% due 02/27/2014		275,000		250,937
6.00% due 10/01/2009		1,500,000		1,466,250
6.625% due 07/15/2015		250,000		235,313
8.50% due 09/15/2010		1,250,000		1,315,625
Mohegan Tribal Gaming Authority
6.125% due 02/15/2013 (a)		670,000		639,013
MTR Gaming Group, Inc.
9.00% due 06/01/2012		500,000		503,750
MTR Gaming Group, Inc., Series B
9.75% due 04/01/2010		250,000		262,812
Penn National Gaming, Inc.
6.875% due 12/01/2011		750,000		746,250
River Rock Entertainment Authority
9.75% due 11/01/2011		1,050,000		1,111,687
San Pasqual Casino Development Group
8.00% due 09/15/2013		975,000		981,094
Speedway Motorsports, Inc.
6.75% due 06/01/2013		900,000		884,250
Station Casinos, Inc.
6.00% due 04/01/2012		1,750,000		1,673,437
6.50% due 02/01/2014		250,000		233,125
6.625% due 03/15/2018		800,000		714,000
6.875% due 03/01/2016 (a)		2,006,000		1,858,057
True Temper Sports, Inc.
8.375% due 09/15/2011		600,000		534,000
Wynn Las Vegas LLC
6.625% due 12/01/2014		1,215,000		1,160,325

				21,151,548
Manufacturing - 0.22%
Bombardier, Inc.
7.45% due 05/01/2034 (a)		750,000		648,750
Medical-Hospitals - 1.60%
Fresenius Medical Care, Inc. - Tranche B
6.387% due 03/22/2013 (b)(f)		500,000		496,875
HCA, Inc.
5.50% due 12/01/2009		300,000		295,875
7.875% due 02/01/2011		885,000		842,963

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Medical-Hospitals (continued)
Multiplan, Inc.
10.375% due 04/15/2016	$	1,950,000	$	1,964,625
Skilled Healthcare Group, Inc.
11.00% due 01/15/2014		515,000		543,325
X-Rite, Inc., Tranche 2nd Lien
10.346% due 06/30/2013 (b)(f)		500,000		500,000

				4,643,663
Office Furnishings & Supplies - 0.12%
IKON Office Solutions, Inc.
7.75% due 09/15/2015 (a)		350,000		351,750
Paper - 2.44%
Abitibi-Consolidated, Inc.
5.25% due 06/20/2008		450,000		429,750
6.95% due 04/01/2008 (a)		1,293,000		1,283,302
Georgia-Pacific Corp.
7.485% due 02/14/2013 (b)(f)		1,701,475		1,702,122
Georgia-Pacific Corp., Tranche C
8.30% due 02/14/2011 (b)(f)		2,180,000		2,197,811
Neenah Paper, Inc.
7.375% due 11/15/2014		800,000		745,000
P.H. Glatfelter
7.125% due 05/01/2016		725,000		714,696

				7,072,681
Petroleum Services - 0.43%
Hanover Compressor Company
8.625% due 12/15/2010		304,000		316,160
9.00% due 06/01/2014		324,000		343,440
Hanover Equipment Trust
8.75% due 09/01/2011		575,000		598,000

				1,257,600
Pharmaceuticals - 0.17%
Omnicare, Inc.
6.875% due 12/15/2015 (a)		505,000		482,906
Publishing - 2.46%
American Media Operations, Inc.
8.875% due 01/15/2011		330,000		287,100
Dex Media East LLC
12.125% due 11/15/2012		300,000		334,500
Dex Media West LLC
9.875% due 08/15/2013		400,000		429,500
Houghton Mifflin Company
zero coupon, Step up to 11.5% on
10/15/2008 due 10/15/2013		767,000		642,362
8.25% due 02/01/2011		3,100,000		3,131,000
9.875% due 02/01/2013		600,000		621,000
Medianews Group, Inc.
6.875% due 10/01/2013		400,000		366,000
Nielsen Finance LLC
zero coupon, Step up to 12.5% on
08/01/2011 due 08/01/2016 (a)		850,000		486,625
Primedia, Inc.
8.00% due 05/15/2013		830,000		740,775
8.875% due 05/15/2011 (a)		100,000		97,000

				7,135,862

The accompanying notes are an integral part of the financial statements. 412

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Railroads & Equipment - 0.59%
Greenbrier Companies, Inc.
8.375% due 05/15/2015	$	1,700,000	$	1,712,750
Real Estate - 4.43%
Ashton Woods USA
9.50% due 10/01/2015		440,000		381,700
BF Saul, REIT
7.50% due 03/01/2014		1,800,000		1,827,000
Capital Automotive LP REIT
7.160% due 12/16/2010 (b)(f)		703,286		704,067
Felcor Suites LP, REIT
7.625% due 10/01/2007 (a)		2,000,000		2,020,000
Host Marriott LP, REIT
7.125% due 11/01/2013		250,000		252,500
9.50% due 01/15/2007		250,000		252,812
Host Marriott LP, Series M, REIT
7.00% due 08/15/2012		1,100,000		1,108,250
Host Marriott LP, Series Q, REIT
6.75% due 06/01/2016		2,800,000		2,716,000
Rouse Company LP, REIT
6.75% due 05/01/2013		2,905,000		2,892,235
Trizec Properties, Inc.
6.525% due 03/31/2007 (b)(f)		700,000		698,544

				12,853,108
Retail - 1.29%
Ferrellgas Escrow LLC
6.75% due 05/01/2014		650,000		625,625
Suburban Propane Partners LP
6.875% due 12/15/2013		340,000		325,550
Sunstate Equipment Company LLC
10.50% due 04/01/2013		500,000		521,250
Toys R Us, Inc., Tranche B
8.402% due 12/09/2008 (b)(f)		2,250,000		2,258,438

				3,730,863
Retail Trade - 1.47%
American Greetings Corp.
7.375% due 06/01/2016		400,000		402,500
Neff Corp.
11.25% due 06/15/2012		2,250,000		2,418,750
Payless Shoesource, Inc.
8.25% due 08/01/2013		1,400,000		1,435,000

				4,256,250
Sanitary Services - 1.19%
Allied Waste North America, Inc.
6.50% due 11/15/2010		800,000		786,000
7.125% due 05/15/2016		1,600,000		1,560,000
7.875% due 04/15/2013 (a)		800,000		810,000
Allied Waste North America, Inc., Series B
5.75% due 02/15/2011 (a)		300,000		285,000

				3,441,000
Semiconductors - 2.34%
Amkor Technology, Inc.
7.75% due 05/15/2013		20,000		18,800
9.25% due 06/01/2016 (a)		825,000		785,812

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Semiconductors (continued)
Avago Technologies Financial Services
10.125% due 12/01/2013	$	2,300,000	$	2,406,375
11.875% due 12/01/2015 (a)		1,375,000		1,483,281
Sensata Technologies BV
8.00% due 05/01/2014 (a)		850,000		833,000
Spansion LLC
11.25% due 01/15/2016		1,225,000		1,254,094

				6,781,362
Software - 0.10%
UGS Capital Corp. II
10.38% due 06/01/2011 (b)		300,000		302,250
Telecommunications Equipment &
Services - 4.45%
Citizens Communications Company
7.05% due 10/01/2046		1,100,000		946,000
7.625% due 08/15/2008 (a)		725,000		746,750
Eschelon Operating Company
8.375% due 03/15/2010		700,000		675,500
Intelsat Bermuda Ltd.
11.25% due 06/15/2016		3,265,000		3,383,356
Intelsat Ltd.
5.25% due 11/01/2008		1,750,000		1,666,875
Level 3 Communications, Inc., Tranche 1st Lien
8.413% due 12/01/2011 (b)(f)		1,000,000		1,005,000
PanAmSat Corp.
9.00% due 08/15/2014		2,450,000		2,492,875
9.00% due 06/15/2016		805,000		817,075
Time Warner Telecom Holdings, Inc.
9.25% due 02/15/2014		1,125,000		1,170,000

				12,903,431
Telephone - 4.18%
Cincinnati Bell, Inc.
7.00% due 02/15/2015		720,000		702,000
7.25% due 07/15/2013		600,000		609,750
GTE Hawaiian Telephone Company, Series B
7.375% due 09/01/2006		600,000		600,000
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		500,000		495,625
Qwest Corp.
7.50% due 10/01/2014		500,000		508,750
7.625% due 06/15/2015		300,000		307,875
7.875% due 09/01/2011		2,900,000		3,023,250
8.875% due 03/15/2012		2,700,000		2,922,750
Valor Telecommunications Enterprise
7.75% due 02/15/2015		1,450,000		1,529,750
Windstream Corp.
8.125% due 08/01/2013		550,000		580,250
8.625% due 08/01/2016		800,000		846,000

				12,126,000
Tobacco - 0.81%
Reynolds American, Inc.
6.50% due 07/15/2010		250,000		252,020
7.625% due 06/01/2016		2,000,000		2,086,712

				2,338,732

The accompanying notes are an integral part of the financial statements. 413

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or
		Principal
		Amount		Value


CORPORATE BONDS (continued)
Transportation - 1.31%
AWAS Aviation Corp., Tranche 2nd Lien
11.50% due 03/20/2013 (b)(f)	$	294,016	$	294,751
Bombardier, Inc.
6.75% due 05/01/2012		650,000		610,188
Continental Airlines Inc., Series 00-1
8.499% due 05/01/2011		474,943		470,592
Gulfmark Offshore, Inc.
7.75% due 07/15/2014 (b)		900,000		895,500
Laidlaw International, Inc., Tranche B
9.00% due 07/31/2013 (b)(f)		500,000		503,125
Trailer Bridge, Inc.
9.25% due 11/15/2011		500,000		508,750
US Airways Group, Inc.
8.999% due 03/31/2011 (b)(f)		500,000		502,500

				3,785,406


TOTAL CORPORATE BONDS (Cost $267,932,926)			$	267,162,845


ASSET BACKED SECURITIES - 0.44%
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031		1,250,000		1,272,494

TOTAL ASSET BACKED SECURITIES
(Cost $1,249,974)			$	1,272,494


SHORT TERM INVESTMENTS - 12.66%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	36,710,913	$	36,710,913

TOTAL SHORT TERM INVESTMENTS
(Cost $36,710,913)			$	36,710,913


REPURCHASE AGREEMENTS - 6.10%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$17,712,943 on 09/01/2006,
collateralized by $18,820,000
Federal Home Loan Mortgage
Corp., 4.125% due 02/24/2011
(valued at $18,067,200, including
interest) (c)	$	17,711,000	$	17,711,000

TOTAL REPURCHASE AGREEMENTS
(Cost $17,711,000)			$	17,711,000

Total Investments (U.S. High Yield Bond Fund)
(Cost $323,604,813) - 111.32%			$	322,857,252
Liabilities in Excess of Other Assets - (11.32)%				(32,843,725)

TOTAL NET ASSETS - 100.00%			$	290,013,527



U.S. Multi Sector Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 95.00%
Aerospace - 1.41%
Armor Holdings, Inc. *		2,000	$	105,740

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Aerospace (continued)
Boeing Company	23,900	$	1,790,110
General Dynamics Corp.	51,400		3,472,070
Goodrich Corp.	14,700		572,565
Lockheed Martin Corp.	19,900		1,643,740
Northrop Grumman Corp.	77,400		5,171,094
Raytheon Company	16,200		764,802
United Technologies Corp.	61,100		3,831,581

			17,351,702
Agriculture - 0.31%
Archer-Daniels-Midland Company	93,200		3,837,044
Air Freight - 0.02%
ExpressJet Holdings, Inc. * (a)	30,800		215,292
Air Travel - 0.06%
SkyWest, Inc.	29,100		703,347
Aluminum - 0.27%
Alcoa, Inc.	117,500		3,359,325
Apparel & Textiles - 0.83%
Columbia Sportswear Company * (a)	12,800		624,896
Deckers Outdoor Corp. * (a)	7,400		303,474
Jones Apparel Group, Inc.	43,000		1,345,900
Kellwood Company	5,900		161,719
K-Swiss, Inc., Class A (a)	14,800		407,148
Liz Claiborne, Inc.	49,100		1,834,867
Mohawk Industries, Inc. * (a)	28,700		2,034,256
Oakley, Inc. (a)	29,900		491,855
Oxford Industries, Inc. (a)	14,400		591,552
Polo Ralph Lauren Corp., Class A	3,800		224,162
Skechers United States of America, Inc.,
Class A *	4,900		110,936
Timberland Company, Class A *	23,100		656,271
VF Corp.	18,600		1,299,954
Weyco Group, Inc. (a)	2,000		42,580

			10,129,570
Auto Parts - 0.77%
Aftermarket Technology Corp. *	6,300		127,134
American Axle & Manufacturing Holdings, Inc. (a)	16,400		273,716
ArvinMeritor, Inc. (a)	20,800		308,880
AutoZone, Inc. *	28,100		2,537,430
Genuine Parts Company	44,700		1,847,451
Johnson Controls, Inc.	37,300		2,682,989
Keystone Automotive Industries, Inc. * (a)	4,900		168,511
O'Reilly Automotive, Inc. *	25,500		757,095
TRW Automotive Holdings Corp. *	31,300		771,858

			9,475,064
Auto Services - 0.26%
AutoNation, Inc. *	161,800		3,143,774
Lithia Motors, Inc., Class A	3,700		94,424

			3,238,198
Automobiles - 0.67%
Ford Motor Company (a)	576,900		4,828,653

The accompanying notes are an integral part of the financial statements. 414

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Automobiles (continued)
PACCAR, Inc. (a)	56,400	$	3,083,388
Tenneco, Inc. *	14,900		338,975

			8,251,016
Banking - 1.23%
1st Source Corp. (a)	660		19,767
Anchor BanCorp Wisconsin, Inc. (a)	5,800		169,476
BancFirst Corp.	700		33,159
Bank of America Corp.	56,800		2,923,496
BB&T Corp. (a)	27,500		1,177,000
BOK Financial Corp.	900		46,800
Camden National Corp. (a)	300		13,050
City Bank Lynnwood WA (a)	1,100		55,957
Comerica, Inc.	31,300		1,791,925
First Community Bancorp	3,800		203,718
First Indiana Corp. (a)	8,200		200,490
Frontier Financial Corp. (a)	700		28,623
Hancock Holding Company (a)	4,600		238,464
Harleysville National Corp. (a)	1,260		26,044
ITLA Capital Corp.	2,200		115,390
Macatawa Bank Corp. (a)	1,065		24,783
MainSource Financial Group, Inc.	700		11,865
National City Corp.	183,900		6,359,262
Northern Trust Corp.	12,000		671,880
Old Second Bancorp, Inc. (a)	1,900		57,684
Park National Corp. (a)	400		41,444
United Bankshares, Inc.	2,900		108,083
Virginia Commerce Bancorp, Inc. * (a)	1,350		29,916
Wilmington Trust Corp.	16,600		731,230

			15,079,506
Biotechnology - 0.18%
Applera Corp.	53,700		1,645,905
Genentech, Inc. *	5,000		412,600
Techne Corp. *	3,200		162,880

			2,221,385
Broadcasting - 0.08%
CBS Corp., Class B	4,400		125,620
News Corp.	40,100		763,103
Sinclair Broadcast Group, Inc., Class A (a)	17,500		135,100

			1,023,823
Building Materials & Construction - 0.62%
American Standard Companies, Inc.	60,500		2,527,085
Dycom Industries, Inc. * (a)	15,800		319,950
Eagle Materials, Inc.	18,700		670,395
EMCOR Group, Inc. *	29,900		1,657,656
Lennox International, Inc.	25,900		609,686
LSI Industries, Inc.	13,600		249,288
Masco Corp.	48,400		1,326,644
NCI Building Systems, Inc. * (a)	2,200		119,548
Perini Corp. *	6,100		146,217

			7,626,469

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Business Services - 2.73%
Affiliated Computer Services, Inc., Class A * (a)	52,800	$	2,710,752
CDI Corp. (a)	4,100		85,895
Cendant Corp.	42,000		81,060
Compucredit Corp. * (a)	16,400		478,060
Computer Sciences Corp. *	44,600		2,113,148
CSG Systems International, Inc. *	26,400		710,688
Deluxe Corp. (a)	16,700		299,264
DST Systems, Inc. *	10,400		613,912
Electronic Data Systems Corp.	36,700		874,561
Equifax, Inc.	18,400		584,936
FactSet Research Systems, Inc.	16,900		745,290
Fair Isaac Corp.	29,000		1,015,290
First Data Corp.	125,200		5,379,844
Fluor Corp.	3,700		319,754
Forrester Research, Inc. *	5,000		147,600
Global Payments, Inc.	7,000		266,350
H & R Block, Inc.	21,700		456,351
Hudson Highland Group, Inc. * (a)	7,100		71,142
Jacobs Engineering Group, Inc. *	11,200		975,408
Lightbridge, Inc. *	10,600		126,140
Manpower, Inc.	35,300		2,086,583
MAXIMUS, Inc.	8,100		215,622
Moody's Corp.	101,300		6,197,534
MPS Group, Inc. *	24,300		341,658
On Assignment, Inc. *	13,400		127,702
Paxar Corp. *	3,700		72,039
Paychex, Inc.	38,200		1,371,762
Pitney Bowes, Inc.	69,900		3,046,941
Pre-Paid Legal Services, Inc. (a)	9,200		345,552
Robert Half International, Inc.	39,900		1,234,506
Sirva, Inc. * (a)	7,500		22,725
Spherion Corp. *	33,800		252,486
StarTek, Inc.	4,200		47,754
Tyler Technologies, Inc. *	3,300		43,164

			33,461,473
Cellular Communications - 0.27%
Motorola, Inc.	141,400		3,305,932
Chemicals - 0.24%
A. Schulman, Inc.	4,300		101,437
Airgas, Inc.	3,100		111,042
Albany Molecular Research, Inc. *	9,500		93,100
Cabot Corp.	8,400		279,132
E.I. Du Pont De Nemours & Company	45,900		1,834,623
H.B. Fuller Company	8,400		161,532
PolyOne Corp. *	20,600		178,602
Sensient Technologies Corp.	9,300		187,116

			2,946,584
Colleges & Universities - 0.11%
Career Education Corp. *	3,300		63,195
ITT Educational Services, Inc. *	19,100		1,262,319

			1,325,514

The accompanying notes are an integral part of the financial statements. 415

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Commercial Services - 0.00%
Vertrue, Inc. * (a)	1,000	$	42,390
Computers & Business Equipment - 3.36%
Benchmark Electronics, Inc. *	4,700		117,218
CalAmp Corp. * (a)	5,900		39,707
CDW Corp.	14,300		833,690
Dell, Inc. *	560,300		12,634,765
Diebold, Inc.	11,400		477,774
Hewlett-Packard Company	404,300		14,781,208
Ingram Micro, Inc., Class A *	54,100		973,800
International Business Machines Corp.	78,300		6,339,951
Lexmark International, Inc. *	52,900		2,966,103
Plexus Corp. *	3,100		61,442
Rimage Corp. * (a)	2,100		49,266
Sykes Enterprises, Inc. *	14,900		299,639
Tech Data Corp. *	28,600		997,854
Western Digital Corp. *	36,000		658,800

			41,231,217
Construction & Mining Equipment - 0.01%
Kaman Corp., Class A	8,100		145,071
Construction Materials - 0.34%
Ameron International Corp.	3,700		259,518
Columbus McKinnon Corp. *	6,400		118,336
Comfort Systems USA, Inc.	6,100		79,483
Florida Rock Industries, Inc.	2,800		104,132
Granite Construction, Inc.	8,400		450,660
Martin Marietta Materials, Inc.	22,100		1,820,156
Simpson Manufacturing, Inc. (a)	13,800		363,630
Standex International Corp.	800		23,560
Universal Forest Products, Inc. (a)	9,400		458,344
USG Corp. * (a)	8,600		438,600

			4,116,419
Containers & Glass - 0.05%
Greif, Inc., Class A	400		28,340
Pactiv Corp. *	18,200		486,486
Smurfit-Stone Container Corp. *	10,200		116,178

			631,004
Cosmetics & Toiletries - 0.30%
Avon Products, Inc.	20,100		577,071
Colgate-Palmolive Company	45,300		2,711,658
Playtex Products, Inc. * (a)	29,400		386,610

			3,675,339
Crude Petroleum & Natural Gas - 1.17%
Apache Corp.	25,900		1,690,752
Devon Energy Corp.	25,800		1,612,242
Marathon Oil Corp.	25,300		2,112,550
Newfield Exploration Company *	2,300		99,452
Occidental Petroleum Corp.	115,200		5,874,048
Pogo Producing Company (a)	2,600		115,466
Sunoco, Inc.	40,300		2,897,973

			14,402,483

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Domestic Oil - 0.08%
St. Mary Land & Exploration Company (a)	23,600	$	962,880
Drugs & Health Care - 0.23%
Wyeth	57,900		2,819,730
Educational Services - 0.01%
Renaissance Learning, Inc. (a)	4,800		62,208
Electrical Equipment - 0.97%
A.O. Smith Corp. (a)	11,300		453,243
Anaren, Inc. *	6,400		144,384
Baldor Electric Company	3,700		109,557
Cohu, Inc.	7,700		129,129
Emerson Electric Company	101,400		8,330,010
Genlyte Group, Inc. *	9,600		629,088
Greatbatch, Inc. * (a)	6,900		168,774
Molex, Inc.	24,800		904,456
Tektronix, Inc.	16,900		478,946
Watsco, Inc. (a)	9,400		413,036
Wesco International, Inc. *	1,900		111,150

			11,871,773
Electrical Utilities - 0.26%
Black Hills Corp. (a)	7,100		247,151
CenterPoint Energy, Inc. (a)	43,900		634,355
Edison International	20,200		881,528
FirstEnergy Corp.	24,000		1,369,440

			3,132,474
Electronics - 0.66%
Agilent Technologies, Inc. *	76,700		2,466,672
Amphenol Corp., Class A	4,600		264,362
Arrow Electronics, Inc. *	16,900		471,510
Avnet, Inc. *	32,400		633,744
AVX Corp. (a)	11,100		184,371
Cubic Corp. (a)	2,300		46,299
Daktronics, Inc. (a)	13,200		275,484
Harman International Industries, Inc.	1,300		105,456
Imation Corp.	14,100		558,783
Planar Systems, Inc. * (a)	3,700		36,371
Rogers Corp. *	2,600		150,852
Supertex, Inc. * (a)	7,100		251,127
Synopsys, Inc. *	44,700		847,512
Technitrol, Inc.	9,500		268,945
Teleflex, Inc.	15,400		859,474
Thermo Electron Corp. *	16,500		646,800

			8,067,762
Financial Services - 7.83%
Advanta Corp., Class B	1,600		54,176
Asset Acceptance Capital Corp. *	6,200		91,698
Bear Stearns Companies, Inc.	14,500		1,890,075
Charles Schwab Corp.	195,400		3,186,974
CIT Group, Inc.	27,900		1,257,174
Citigroup, Inc.	151,700		7,486,395
Credit Acceptance Corp. * (a)	800		22,752

The accompanying notes are an integral part of the financial statements. 416

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Financial Services (continued)
ETRADE Financial Corp.	87,300	$	2,059,407
Federal Agricultural Mortgage Corp., Class C (a)	5,600		157,080
Federal Home Loan Mortgage Corp.	67,500		4,293,000
Federal National Mortgage Association	448,700		23,624,055
Federated Investors, Inc., Class B	28,100		940,788
Fiserv, Inc. *	32,200		1,422,274
Goldman Sachs Group, Inc.	52,800		7,848,720
Investment Technology Group, Inc. *	7,600		351,196
Janus Capital Group, Inc.	10,900		193,802
Jefferies Group, Inc.	20,300		505,876
JPMorgan Chase & Company	210,000		9,588,600
Lehman Brothers Holdings, Inc.	48,600		3,101,166
Mellon Financial Corp.	69,300		2,580,039
Merrill Lynch & Company, Inc.	89,100		6,551,523
Moneygram International, Inc.	32,600		1,023,640
Morgan Stanley	55,900		3,677,661
PNC Financial Services Group, Inc.	40,400		2,859,916
Raymond James Financial, Inc.	32,500		900,900
State Street Corp. (c)	41,600		2,570,880
Stifel Financial Corp. * (a)	600		19,182
Student Loan Corp. (a)	3,000		551,400
SWS Group, Inc.	2,700		66,420
T. Rowe Price Group, Inc.	3,100		136,586
TD Ameritrade Holding Corp. *	47,700		835,704
United Panam Financial Corp. *	2,000		34,140
Waddell & Reed Financial, Inc., Class A	10,400		241,488
Washington Mutual, Inc.	141,800		5,940,002

			96,064,689
Food & Beverages - 4.02%
Dean Foods Company *	56,300		2,230,606
Flowers Foods, Inc.	16,400		445,260
H.J. Heinz Company	25,000		1,046,000
Hormel Foods Corp.	4,500		164,925
Kraft Foods, Inc., Class A (a)	55,100		1,868,441
National Beverage Corp. * (a)	1,400		19,684
Pepsi Bottling Group, Inc.	61,200		2,142,612
PepsiCo, Inc.	13,300		868,224
Performance Food Group Company * (a)	16,200		398,682
Sanderson Farms, Inc. (a)	11,800		368,868
Sara Lee Corp.	87,500		1,455,125
Starbucks Corp. *	338,800		10,506,188
Sysco Corp.	108,300		3,399,537
The Coca-Cola Company	498,700		22,346,747
Tyson Foods, Inc., Class A (a)	136,100		2,004,753

			49,265,652
Furniture & Fixtures - 0.16%
Ethan Allen Interiors, Inc. (a)	19,700		664,875
Furniture Brands International, Inc. (a)	35,600		681,740
Kimball International, Inc., Class B	2,200		38,808
La-Z-Boy, Inc. (a)	20,800		290,160

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Furniture & Fixtures (continued)
Leggett & Platt, Inc.	14,600	$	336,530

			2,012,113
Gas & Pipeline Utilities - 0.05%
Maverick Tube Corp. * (a)	10,400		668,408
Healthcare Products - 2.73%
Baxter International, Inc.	53,400		2,369,892
Becton, Dickinson & Company	4,800		334,560
Biomet, Inc.	13,200		431,772
Computer Programs & Systems, Inc. (a)	7,400		251,748
IDEXX Laboratories, Inc. *	3,600		331,236
Johnson & Johnson	438,100		28,327,546
Owens & Minor, Inc.	8,900		286,313
PSS World Medical, Inc. *	6,500		126,100
Respironics, Inc. *	3,300		121,803
St. Jude Medical, Inc. *	3,100		112,871
Varian Medical Systems, Inc. *	15,500		826,150

			33,519,991
Healthcare Services - 6.41%
AMN Healthcare Services, Inc. *	9,300		223,200
Cardinal Health, Inc.	190,000		12,809,800
Caremark Rx, Inc.	72,500		4,200,650
CorVel Corp. *	500		15,500
Express Scripts, Inc. *	132,000		11,098,560
Health Net, Inc. *	49,400		2,065,414
Lincare Holdings, Inc. *	58,000		2,147,740
McKesson Corp.	274,900		13,964,920
National Healthcare Corp. (a)	700		34,279
Odyssey Healthcare, Inc. *	5,700		91,428
Quest Diagnostics, Inc.	48,800		3,136,864
UnitedHealth Group, Inc.	540,900		28,099,755
Weight Watchers International, Inc.	18,000		764,280

			78,652,390
Holdings Companies/Conglomerates - 0.34%
Loews Corp.	76,700		2,951,416
Textron, Inc.	10,900		914,074
United Industrial Corp. (a)	6,100		328,607

			4,194,097
Homebuilders - 0.94%
Beazer Homes USA, Inc. (a)	11,300		455,390
Centex Corp.	31,800		1,620,210
D.R. Horton, Inc. (a)	55,600		1,219,308
Hovnanian Enterprises, Inc., Class A * (a)	5,600		148,344
KB Home	24,200		1,034,792
Lennar Corp., Class A	34,100		1,529,044
M.D.C. Holdings, Inc. (a)	7,000		299,530
M/I Homes, Inc. (a)	17,800		576,008
Meritage Homes Corp. * (a)	1,700		69,615
NVR, Inc. * (a)	2,200		1,130,030
Pulte Homes, Inc.	70,100		2,079,867
Ryland Group, Inc. (a)	20,000		853,400

The accompanying notes are an integral part of the financial statements. 417

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Homebuilders (continued)
Standard Pacific Corp. (a)	22,600	$	540,818

			11,556,356
Hotels & Restaurants - 1.15%
Applebee's International, Inc.	54,900		1,139,175
Brinker International, Inc.	39,300		1,511,871
CBRL Group, Inc. (a)	23,000		870,320
Choice Hotels, Inc.	8,500		322,235
Darden Restaurants, Inc.	74,500		2,637,300
IHOP Corp. (a)	3,900		182,091
Jack In the Box, Inc. *	18,900		906,822
Papa Johns International, Inc. * (a)	39,800		1,353,200
Ruby Tuesday, Inc. (a)	15,000		387,300
Ryan's Restaurant Group, Inc. *	26,100		411,336
Sonic Corp. * (a)	19,400		425,442
Wendy's International, Inc.	42,000		2,683,800
Wyndham Worldwide Corp. *	8,400		245,784
Yum! Brands, Inc.	20,000		977,600

			14,054,276
Household Appliances - 0.48%
Drew Industries, Inc. * (a)	2,700		70,497
Whirlpool Corp. (a)	72,100		5,833,611

			5,904,108
Household Products - 0.42%
Blyth, Inc.	18,300		393,084
Energizer Holdings, Inc. *	12,000		802,320
Newell Rubbermaid, Inc.	122,100		3,295,479
Select Comfort Corp. * (a)	17,650		350,352
Tupperware Brands Corp.	18,200		327,782

			5,169,017
Housing & Urban Development - 0.00%
Cavco Industries, Inc. *	700		23,814
Industrial Machinery - 1.11%
Caterpillar, Inc.	55,900		3,708,965
Cummins, Inc.	8,700		998,934
Deere & Company	22,500		1,757,250
Flowserve Corp. *	13,700		700,618
Graco, Inc.	2,900		109,620
ITT Corp.	18,000		881,100
NACCO Industries, Inc., Class A	2,300		307,119
Parker-Hannifin Corp.	18,000		1,332,900
Tennant Company	5,600		151,536
Terex Corp. *	20,400		896,172
Valmont Industries, Inc.	6,600		344,256
W.W. Grainger, Inc.	36,300		2,424,840

			13,613,310
Industrials - 0.15%
Crane Company	17,100		683,658
Fastenal Company (a)	24,200		887,656
Harsco Corp.	1,500		119,340
Lawson Products, Inc.	1,700		65,620

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Industrials (continued)
Michael Baker Corp. *	1,000	$	22,000

			1,778,274
Insurance - 8.25%
21st Century Insurance Group (a)	11,100		166,833
AFLAC, Inc.	283,500		12,777,345
Allstate Corp.	36,900		2,137,986
Ambac Financial Group, Inc.	43,800		3,792,642
American Financial Group, Inc.	15,900		742,848
American International Group, Inc.	208,800		13,325,616
American National Insurance Company	100		11,504
Amerus Group Company	15,800		1,071,240
Aon Corp.	118,300		4,089,631
Brown & Brown, Inc.	38,400		1,149,696
Chubb Corp.	70,600		3,541,296
CIGNA Corp.	19,000		2,148,330
Cincinnati Financial Corp.	2,400		111,984
CNA Surety Corp. *	1,500		29,850
Commerce Group, Inc. (a)	11,500		342,585
Conseco, Inc. *	26,700		552,690
Donegal Group, Inc.	5,900		109,681
Erie Indemnity Company, Class A (a)	10,300		525,712
FBL Financial Group, Inc., Class A	4,000		132,640
Fidelity National Financial, Inc.	64,900		2,610,927
First American Corp.	38,700		1,571,994
Hanover Insurance Group, Inc.	26,000		1,157,000
Harleysville Group, Inc.	3,700		133,163
HCC Insurance Holdings, Inc.	25,600		831,744
LandAmerica Financial Group, Inc. (a)	12,900		815,796
Lincoln National Corp.	65,183		3,956,608
Marsh & McLennan Companies, Inc.	9,500		248,520
MBIA, Inc.	40,400		2,489,852
MetLife, Inc.	48,900		2,690,967
MGIC Investment Corp.	50,600		2,928,222
National Western Life Insurance Company,
Class A *	900		207,270
Nationwide Financial Services, Inc., Class A	6,800		329,188
Old Republic International Corp.	144,575		3,021,618
PMI Group, Inc.	62,500		2,702,500
Presidential Life Corp. (a)	10,100		238,057
Principal Financial Group, Inc.	20,100		1,070,124
Progressive Corp.	344,200		8,463,878
Protective Life Corp.	20,300		934,409
Prudential Financial, Inc.	22,900		1,681,089
Radian Group, Inc.	24,000		1,437,120
Reinsurance Group of America, Inc.	6,900		356,592
St. Paul Travelers Companies, Inc.	89,900		3,946,610
Stancorp Financial Group, Inc.	14,800		689,236
State Auto Financial Corp.	2,700		84,618
Stewart Information Services Corp.	12,200		416,142
Torchmark Corp.	61,200		3,807,252
Transatlantic Holdings, Inc. (a)	6,800		417,656
Triad Guaranty, Inc. * (a)	2,400		120,648

The accompanying notes are an integral part of the financial statements. 418

John Hancock Funds II

Portfolio of investments — August 31, 2006

(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Insurance (continued)
Universal American Financial Corp. *	26,000	$	398,580
UnumProvident Corp. (a)	119,900		2,272,105
W.R. Berkley Corp.	70,000		2,450,000

			101,239,594
International Oil - 0.98%
Anadarko Petroleum Corp.	198,000		9,288,180
ConocoPhillips	18,077		1,146,624
Hess Corp.	34,300		1,570,254

			12,005,058
Internet Service Provider - 0.05%
Earthlink, Inc. *	67,600		496,860
United Online, Inc.	12,100		138,787

			635,647
Internet Software - 0.02%
WebMethods, Inc. *	33,900		267,471
Leisure Time - 0.32%
Bally Total Fitness Holding Corp. * (a)	16,600		49,800
Bluegreen Corp. * (a)	9,100		104,195
International Game Technology, Inc.	84,600		3,272,328
Marine Products Corp. (a)	1,300		11,492
Walt Disney Company	15,100		447,715

			3,885,530
Life Sciences - 0.05%
Pharmaceutical Product Development, Inc.	15,400		587,048
Liquor - 0.44%
Anheuser-Busch Companies, Inc.	78,900		3,896,082
Brown Forman Corp., Class B	19,200		1,478,016

			5,374,098
Manufacturing - 1.43%
Acuity Brands, Inc.	14,600		623,858
Barnes Group, Inc.	12,000		197,040
Danaher Corp.	69,200		4,587,268
Eaton Corp.	29,500		1,961,750
Harley-Davidson, Inc. (a)	55,900		3,270,709
Illinois Tool Works, Inc.	126,900		5,570,910
Kaydon Corp.	5,800		221,038
Nordson Corp.	8,200		328,328
Rockwell Automation, Inc.	12,800		721,664
SPX Corp.	2,100		110,880

			17,593,445
Medical-Hospitals - 0.01%
Health Management Associates, Inc., Class A	5,400		112,914
Metal & Metal Products - 0.16%
Commercial Metals Company	5,100		110,109
Metal Management, Inc.	6,500		166,270
Mueller Industries, Inc.	5,500		210,760
Reliance Steel & Aluminum Company	41,200		1,350,124
Timken Company	3,700		118,548

			1,955,811

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Mining - 0.10%
Lincoln Electric Holding, Inc. (a)	21,900	$	1,205,157
Mobile Homes - 0.17%
Thor Industries, Inc. (a)	36,900		1,556,442
Winnebago Industries, Inc. (a)	19,300		563,560

			2,120,002
Office Furnishings & Supplies - 0.41%
HNI Corp. (a)	14,500		578,550
IKON Office Solutions, Inc.	24,200		344,850
Office Depot, Inc. *	109,300		4,026,612
The Standard Register Company (a)	7,500		96,225

			5,046,237
Paper - 0.09%
International Paper Company	17,400		604,998
Temple-Inland, Inc.	10,200		454,104

			1,059,102
Petroleum Services - 1.17%
Baker Hughes, Inc.	31,700		2,256,406
BJ Services Company	28,900		991,559
Exxon Mobil Corp.	146,100		9,886,587
Tesoro Petroleum Corp. (a)	9,500		613,795
Valero Energy Corp.	11,000		631,400

			14,379,747
Pharmaceuticals - 12.52%
Abbott Laboratories	73,300		3,569,710
Allergan, Inc.	19,400		2,222,464
AmerisourceBergen Corp.	175,900		7,767,744
Barr Pharmaceuticals, Inc. *	41,300		2,333,450
Bristol-Myers Squibb Company	81,600		1,774,800
Forest Laboratories, Inc. *	263,000		13,144,740
King Pharmaceuticals, Inc. *	58,000		940,760
Merck & Company, Inc.	1,061,000		43,023,550
Pfizer, Inc.	2,858,900		78,791,284

			153,568,502
Photography - 0.10%
Eastman Kodak Company (a)	59,000		1,254,930
Plastics - 0.01%
Spartech Corp.	6,400		144,192
Publishing - 0.26%
Cadmus Communications Corp.	600		9,840
Gannett Company, Inc.	49,600		2,819,760
Valassis Communications, Inc. *	18,000		354,960

			3,184,560
Railroads & Equipment - 0.57%
Burlington Northern Santa Fe Corp.	54,900		3,675,555
CSX Corp.	16,400		495,608
Norfolk Southern Corp.	11,100		474,303
Union Pacific Corp.	28,300		2,273,905
Wabtec Corp.	3,200		90,272

			7,009,643

The accompanying notes are an integral part of the financial statements. 419

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Real Estate - 0.02%
Realogy Corp., REIT *	10,500	$	224,700
Retail - 0.00%
Rex Stores Corp. *	900		12,249
Retail Grocery - 1.70%
Ingles Markets, Inc. (a)	7,600		194,560
Nash-Finch Company (a)	22,900		523,265
Ruddick Corp.	6,400		165,056
Safeway, Inc.	192,900		5,966,397
Smart & Final, Inc. *	3,300		54,681
SUPERVALU, Inc.	82,990		2,370,194
The Kroger Company	482,600		11,490,706
Wild Oats Markets, Inc. * (a)	4,100		66,994

			20,831,853
Retail Trade - 11.66%
Bed Bath & Beyond, Inc. *	130,400		4,398,392
Best Buy Company, Inc.	32,600		1,532,200
Casey's General Stores, Inc.	7,700		182,028
Cato Corp., Class A	13,400		311,282
Charlotte Russe Holding, Inc. * (a)	10,200		272,340
Costco Wholesale Corp.	75,000		3,509,250
Dollar General Corp.	53,800		691,868
Family Dollar Stores, Inc. (a)	29,500		754,315
First Cash Financial Services, Inc. *	16,400		341,612
Home Depot, Inc.	1,373,500		47,097,315
Longs Drug Stores Corp.	2,200		99,946
Lowe's Companies, Inc.	1,377,400		37,272,444
NBTY, Inc. *	4,800		152,928
Pantry, Inc. * (a)	6,700		313,962
Payless ShoeSource, Inc. *	4,100		96,186
Ross Stores, Inc.	21,000		514,290
Sonic Automotive, Inc. (a)	8,700		184,005
Staples, Inc.	125,100		2,822,256
Steven Madden, Ltd. *	17,600		648,560
Talbots, Inc. (a)	9,300		204,693
The Buckle, Inc.	5,300		179,670
The TJX Companies, Inc.	53,100		1,420,425
United Rentals, Inc. * (a)	20,300		439,698
Walgreen Company	219,200		10,841,632
Wal-Mart Stores, Inc.	643,700		28,786,264

			143,067,561
Sanitary Services - 0.23%
Allied Waste Industries, Inc. *	7,800		80,652
Ecolab, Inc.	14,200		633,036
Waste Management, Inc.	60,700		2,080,796

			2,794,484
Semiconductors - 1.38%
Applied Materials, Inc.	91,400		1,542,832
Intel Corp.	386,500		7,552,210
Intersil Corp., Class A	3,800		96,330
Micrel, Inc. *	36,500		365,730

U.S. Multi Sector Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Semiconductors (continued)
Microchip Technology, Inc.	17,600	$	601,216
National Semiconductor Corp.	47,500		1,153,775
NVIDIA Corp. *	50,600		1,472,966
QLogic Corp. *	25,900		476,042
Texas Instruments, Inc.	114,300		3,725,037

			16,986,138
Software - 0.54%
BEA Systems, Inc. *	97,000		1,331,810
BMC Software, Inc. *	40,700		1,083,434
Citrix Systems, Inc. *	38,700		1,187,316
Compuware Corp. *	12,600		95,760
EPIQ Systems, Inc. * (a)	2,700		40,176
Intuit, Inc. *	86,200		2,604,964
JDA Software Group, Inc. * (a)	2,100		34,839
Transaction Systems Architects, Inc., Class A *	8,500		281,945

			6,660,244
Steel - 0.36%
Nucor Corp.	80,100		3,914,487
Olympic Steel, Inc. (a)	10,100		279,265
Ryerson, Inc. (a)	11,900		252,042

			4,445,794
Telecommunications Equipment &
Services - 1.06%
ADTRAN, Inc.	27,600		686,412
Commscope, Inc. *	8,900		259,969
Corning, Inc. *	33,300		740,592
Polycom, Inc. *	13,400		318,786
QUALCOMM, Inc.	292,700		11,026,009
SureWest Communications (a)	1,100		20,878

			13,052,646
Telephone - 4.45%
ALLTEL Corp.	38,900		2,108,769
AT&T, Inc.	613,400		19,095,142
BellSouth Corp.	251,400		10,237,008
CenturyTel, Inc.	37,800		1,505,196
Harris Corp.	16,600		729,072
Qwest Communications International, Inc. * (a)	189,300		1,667,733
TALK America Holdings, Inc. * (a)	14,600		84,680
Verizon Communications, Inc.	543,400		19,116,812

			54,544,412
Tires & Rubber - 0.04%
Goodyear Tire & Rubber Company * (a)	37,900		515,440
Tobacco - 1.12%
Altria Group, Inc.	136,400		11,393,492
Reynolds American, Inc. (a)	7,600		494,532
UST, Inc. (a)	34,000		1,797,240

			13,685,264
Transportation - 0.71%
C.H. Robinson Worldwide, Inc.	100,000		4,582,000
Expeditors International of Washington, Inc.	89,100		3,552,417

The accompanying notes are an integral part of the financial statements. 420

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Transportation (continued)
Kirby Corp. *		6,400	$	187,712
Pacer International, Inc.		6,600		181,698
Saia, Inc. *		4,700		144,525

				8,648,352
Travel Services - 0.06%
Sabre Holdings Corp.		33,000		723,360
Trucking & Freight - 1.27%
Arkansas Best Corp.		14,800		653,420
Celadon Group, Inc. *		9,800		181,594
EGL, Inc. *		5,200		158,964
Fedex Corp.		105,200		10,628,356
Forward Air Corp.		18,500		594,590
J.B. Hunt Transport Services, Inc.		27,100		532,515
Landstar Systems, Inc.		20,800		888,160
Old Dominion Freight Lines, Inc. *		3,700		118,104
Oshkosh Truck Corp.		9,200		475,640
Ryder Systems, Inc.		21,800		1,077,356
Swift Transportation, Inc. * (a)		13,000		301,470

				15,610,169

TOTAL COMMON STOCKS (Cost $1,140,488,559)			$ 1,165,619,843


SHORT TERM INVESTMENTS - 4.81%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	59,044,947	$	59,044,947

TOTAL SHORT TERM INVESTMENTS
(Cost $59,044,947)			$	59,044,947


REPURCHASE AGREEMENTS - 4.57%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$56,044,149 on 9/1/2006,
collateralized by $56,245,000
Federal Home Loan Bank, 5.125%
due 06/13/2008 (valued at
$57,158,981, including interest) (c)	$	56,038,000	$	56,038,000

TOTAL REPURCHASE AGREEMENTS
(Cost $56,038,000)			$	56,038,000

Total Investments (U.S. Multi Sector Fund)
(Cost $1,255,571,506) - 104.38%			$ 1,280,702,790
Liabilities in Excess of Other Assets - (4.38)%				(53,736,897)

TOTAL NET ASSETS - 100.00%			$ 1,226,965,893



Value & Restructuring Fund
		Shares or
		Principal
		Amount		Value


COMMON STOCKS - 96.98%
Aerospace - 2.75%
Empresa Brasileira de Aeronautica SA, ADR		102,704	$	3,964,375

Value & Restructuring Fund (continued)
	Shares or
	Principal
	Amount	Value


COMMON STOCKS (continued)
Aerospace (continued)
United Technologies Corp.	66,906 $	4,195,675

		8,160,050
Air Travel - 2.56%
Copa Holdings SA, Class A	86,725	2,542,777
Gol Linhas Aereas Inteligentes SA, ADR (a)	144,449	5,042,715

		7,585,492
Broadcasting - 2.09%
CBS Corp., Class B	105,256	3,005,059
XM Satellite Radio Holdings, Inc., Class A * (a)	247,105	3,202,481

		6,207,540
Building Materials & Construction - 0.48%
Eagle Materials, Inc.	39,381	1,411,809
Business Services - 0.61%
Cendant Corp.	148,749	287,086
MasterCard, Inc. * (a)	27,480	1,536,132

		1,823,218
Cable and Television - 0.83%
EchoStar Communications Corp., Class A *	77,160	2,449,830
Cellular Communications - 2.86%
America Movil S.A. de C.V., Series L	227,243	8,478,437
Chemicals - 3.66%
Celanese Corp., Series A	176,314	3,260,046
CF Industries Holdings, Inc.	46,000	729,560
Lanxess AG *	51,722	2,119,277
PPG Industries, Inc.	56,552	3,583,135
Tronox, Inc. (a)	91,139	1,166,579

		10,858,597
Coal - 3.50%
CONSOL Energy, Inc.	183,294	6,684,732
Foundation Coal Holdings, Inc.	64,590	2,320,073
International Coal Group, Inc. * (a)	221,524	1,382,310

		10,387,115
Commercial Services - 0.23%
Castlepoint Holdings, Ltd. *	61,100	672,100
Computers & Business Equipment - 1.06%
International Business Machines Corp.	38,872	3,147,466
Containers & Glass - 0.60%
Smurfit-Stone Container Corp. *	156,401	1,781,407
Cosmetics & Toiletries - 0.92%
Avon Products, Inc.	94,953	2,726,101
Crude Petroleum & Natural Gas - 3.53%
Devon Energy Corp.	100,660	6,290,243
Mariner Energy LLC *	37,240	703,836
Pinnacle Gas Resources, Inc. *	28,500	313,500
W&T Offshore, Inc. (a)	98,828	3,171,391

		10,478,970
Domestic Oil - 2.51%
Mariner Energy, Inc. *	7,268	137,365

The accompanying notes are an integral part of the financial statements. 421

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Value & Restructuring Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Domestic Oil (continued)
Murphy Oil Corp.	59,500	$	2,910,145
Noble Energy, Inc.	89,138		4,405,200

			7,452,710
Drugs & Health Care - 0.72%
Wyeth	44,144		2,149,813
Electrical Utilities - 0.53%
Enel SpA	176,602		1,574,649
Electronics - 1.01%
Harman International Industries, Inc.	36,889		2,992,436
Energy - 1.30%
Duke Energy Corp.	61,220		1,836,600
Rosetta Resources, Inc. * (a)	109,285		2,022,865

			3,859,465
Financial Services - 13.20%
Amvescap PLC (a)	148,484		3,100,346
Capital One Financial Corp.	29,140		2,130,134
CIT Group, Inc.	75,430		3,398,876
Citigroup, Inc.	99,265		4,898,728
Federal Home Loan Mortgage Corp.	66,737		4,244,473
Friedman, Billings, Ramsey Group, Inc. (a)	129,610		1,069,283
JPMorgan Chase & Company	84,346		3,851,238
Lehman Brothers Holdings, Inc.	65,303		4,166,984
Morgan Stanley	92,059		6,056,562
PNC Financial Services Group, Inc.	49,442		3,499,999
Washington Mutual, Inc.	65,123		2,728,002

			39,144,625
Food & Beverages - 2.67%
ConAgra Foods, Inc.	76,771		1,827,150
Dean Foods Company *	103,148		4,086,724
Kraft Foods, Inc., Class A (a)	44,065		1,494,244
Vintage Wine Trust, Inc.	58,161		523,449

			7,931,567
Furniture & Fixtures - 0.88%
Leggett & Platt, Inc.	113,160		2,608,338
Gas & Pipeline Utilities - 1.14%
El Paso Corp.	233,390		3,388,823
Healthcare Products - 1.37%
Baxter International, Inc.	91,368		4,054,912
Healthcare Services - 0.96%
HCA, Inc.	57,419		2,831,905
Holdings Companies/Conglomerates - 1.45%
Loews Corp.	111,754		4,300,294
Homebuilders - 2.13%
Centex Corp. (a)	123,694		6,302,209
Hotels & Restaurants - 0.29%
Wyndham Worldwide Corp. *	29,750		870,479
Household Appliances - 2.67%
Black & Decker Corp.	107,351		7,905,328

Value & Restructuring Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Household Products - 1.04%
Newell Rubbermaid, Inc.	113,813	$	3,071,813
Industrial Machinery - 1.01%
AGCO Corp. * (a)	119,926		2,980,161
Insurance - 4.75%
ACE, Ltd.	101,751		5,480,309
Marsh & McLennan Companies, Inc.	96,252		2,517,952
MetLife, Inc.	75,658		4,163,460
People's Choice *	116,874		350,622
Primus Guaranty, Ltd. * (a)	134,114		1,557,063

			14,069,406
International Oil - 5.90%
Anadarko Petroleum Corp.	66,256		3,108,069
ConocoPhillips	115,250		7,310,308
Petroleo Brasileiro SA, ADR	78,902		7,074,353

			17,492,730
Investment Companies - 1.51%
Apollo Investment Corp.	107,152		2,139,825
MCG Capital Corp. (a)	146,652		2,352,298

			4,492,123
Manufacturing - 1.20%
Tyco International, Ltd.	135,550		3,544,632
Metal & Metal Products - 1.20%
Southern Copper Corp. (a)	38,561		3,559,951
Mining - 0.63%
Alpha Natural Resources, Inc. * (a)	103,805		1,881,985
Petroleum Services - 1.98%
PetroHawk Energy Corp. *	163,260		1,820,349
Todco, Class A * (a)	109,649		4,060,302

			5,880,651
Pharmaceuticals - 1.70%
AmerisourceBergen Corp.	78,122		3,449,868
Bristol-Myers Squibb Company	72,871		1,584,944

			5,034,812
Railroads & Equipment - 1.96%
Union Pacific Corp.	72,372		5,815,090
Real Estate - 2.49%
DiamondRock Hospitality Company, REIT	149,230		2,507,064
FBR Capital Markets Corp., REIT *	41,000		615,000
Host Hotels & Resorts, Inc., REIT	80,423		1,812,734
Realogy Corp., REIT *	37,187		795,807
Taberna Realty Finance Trust, REIT	13,311		191,678
Ventas, Inc., REIT	36,331		1,455,057

			7,377,340
Retail Trade - 3.46%
The TJX Companies, Inc.	132,379		3,541,138
United Rentals, Inc. * (a)	170,528		3,693,636
Zale Corp. * (a)	112,562		3,011,034

			10,245,808

The accompanying notes are an integral part of the financial statements. 422

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

Value & Restructuring Fund (continued)
		Shares or
		Principal
		Amount		Value


COMMON STOCKS (continued)
Steel - 0.73%
Schnitzer Steel Industries, Inc. (a)		67,976	$	2,158,238
Telecommunications Equipment &
Services - 1.81%
DataPath, Inc. *		80,000		880,000
Nokia Oyj, SADR		147,838		3,086,858
Plantronics, Inc. (a)		77,422		1,387,402

				5,354,260
Telephone - 3.62%
Harris Corp.		164,512		7,225,367
Sprint Nextel Corp.		109,204		1,847,732
Windstream Corp.		125,152		1,652,006

				10,725,105
Tobacco - 1.65%
Loews Corp. - Carolina Group		85,650		4,904,319
Transportation - 0.68%
Aries Maritime Transport, Ltd. (a)		37,194		407,646
Arlington Tankers, Ltd. (a)		43,132		995,918
Omega Navigation Enterprises, Inc.		41,469		607,521

				2,011,085
Trucking & Freight - 1.15%
Ryder Systems, Inc.		68,746		3,397,427

TOTAL COMMON STOCKS (Cost $278,714,078)			$	287,532,621


PREFERRED STOCKS - 1.38%
Chemicals - 0.20%
Celanese Corp. * (a)		22,031		605,852
Financial Services - 1.18%
Ford Motor Company Capital Trust II *		102,649		3,494,172

TOTAL PREFERRED STOCKS (Cost $3,709,123)			$	4,100,024


SHORT TERM INVESTMENTS - 14.33%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	42,492,506	$	42,492,506

TOTAL SHORT TERM INVESTMENTS
(Cost $42,492,506)			$	42,492,506


REPURCHASE AGREEMENTS - 2.09%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$6,201,680 on 09/01/2006,
collateralized by $6,290,000
Federal National Mortgage
Association, 5.125% due
12/15/2008 (valued at $6,329,313,
including interest) (c)	$	6,201,000	$	6,201,000

TOTAL REPURCHASE AGREEMENTS
(Cost $6,201,000)			$	6,201,000

Total Investments (Value & Restructuring Fund)
(Cost $331,116,707) - 114.78%	$	340,326,151
Liabilities in Excess of Other Assets - (14.78)%		(43,831,444)

TOTAL NET ASSETS - 100.00%	$	296,494,707



Vista Fund
	Shares or
	Principal
	Amount	Value


COMMON STOCKS - 94.98%
Advertising - 0.58%
Focus Media Holding Ltd., ADR * (a)	12,100 $	713,900
Aerospace - 2.08%
BE Aerospace, Inc. *	106,935	2,551,469
Agriculture - 4.32%
Archer-Daniels-Midland Company	44,808	1,844,746
Delta & Pine Land Company	10,283	416,050
Monsanto Company	64,100	3,040,904

		5,301,700
Banking - 2.02%
Colonial Bancgroup, Inc.	5,469	133,936
Compass Bancshares, Inc. (a)	40,400	2,343,200

		2,477,136
Building Materials & Construction - 0.48%
Corrections Corp. of America *	9,300	584,412
Business Services - 3.99%
Alliance Data Systems Corp. *	66,900	3,381,126
Foster Wheeler, Ltd. *	34,628	1,505,279

		4,886,405
Cable and Television - 0.51%
Rogers Communications, Inc., Class B	12,200	628,383
Cellular Communications - 12.15%
America Movil S.A. de C.V., Series L	81,522	3,041,586
American Tower Corp., Class A * (a)	87,712	3,145,352
Crown Castle International Corp. * (a)	16,400	563,504
Leap Wireless International, Inc. * (a)	53,990	2,497,577
NII Holdings, Inc. *	105,900	5,649,765

		14,897,784
Chemicals - 0.51%
OM Group, Inc. *	15,500	620,000
Computers & Business Equipment - 0.50%
Cognizant Technology Solutions Corp.,
Class A *	8,700	608,217
Drugs & Health Care - 0.46%
Illumina, Inc. * (a)	16,600	559,088
Electrical Equipment - 0.98%
Anixter International, Inc. *	10,700	583,043
Molex, Inc.	17,000	619,990

		1,203,033
Electrical Utilities - 2.43%
Allegheny Energy, Inc. * (a)	57,500	2,400,050
Quanta Services, Inc. * (a)	32,781	581,207

		2,981,257
Electronics - 4.10%
Amphenol Corp., Class A	10,200	586,194

The accompanying notes are an integral part of the financial statements. 423

John Hancock Funds II

Portfolio of investments — August 31, 2006

(showing percentage of total net assets)

Vista Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Electronics (continued)
Mentor Graphics Corp. *	40,800	$	591,600
Thermo Electron Corp. *	98,200		3,849,440

			5,027,234
Energy - 0.94%
Southwestern Energy Company * (a)	33,500		1,150,725
Financial Services - 2.44%
Bear Stearns Companies, Inc.	4,300		560,505
Investment Technology Group, Inc. *	26,870		1,241,663
SEI Investments Company	23,400		1,194,336

			2,996,504
Food & Beverages - 1.68%
Campbell Soup Company	23,600		886,652
H.J. Heinz Company	20,700		866,088
Hershey Company	5,600		302,176

			2,054,916
Healthcare Products - 1.46%
Advanced Medical Optics, Inc. * (a)	24,700		1,189,305
Hologic, Inc. * (a)	13,900		600,202

			1,789,507
Healthcare Services - 7.19%
Caremark Rx, Inc.	10,300		596,782
Covance, Inc. *	38,000		2,389,060
Emdeon Corp. * (a)	49,400		585,390
Express Scripts, Inc. *	7,200		605,376
Humana, Inc. *	24,600		1,498,878
Laboratory Corp. of America Holdings *	18,600		1,272,612
Quest Diagnostics, Inc.	29,000		1,864,120

			8,812,218
Industrial Machinery - 1.13%
Alstom RGPT *	14,700		1,384,046
Industrials - 0.57%
ABB, Ltd.	52,500		695,773
Insurance - 2.47%
American Financial Group, Inc.	13,000		607,360
Arch Capital Group, Ltd. *	10,700		637,720
Radian Group, Inc.	9,400		562,872
Torchmark Corp. (a)	19,700		1,225,537

			3,033,489
Internet Software - 0.98%
Akamai Technologies, Inc. *	30,512		1,196,070
Leisure Time - 2.92%
International Game Technology, Inc.	39,800		1,539,464
Las Vegas Sands Corp. *	29,200		2,038,452

			3,577,916
Life Sciences - 2.38%
Pharmaceutical Product Development, Inc.	76,614		2,920,526
Medical-Hospitals - 1.21%
Manor Care, Inc. (a)	28,400		1,482,480

Vista Fund (continued)
	Shares or
	Principal
	Amount		Value


COMMON STOCKS (continued)
Metal & Metal Products - 2.03%
Precision Castparts Corp.	42,645	$	2,492,174
Office Furnishings & Supplies - 0.50%
Office Depot, Inc. *	16,600		611,544
Petroleum Services - 12.16%
Core Laboratories N.V. *	18,295		1,342,304
Diamond Offshore Drilling, Inc. (a)	8,300		601,584
Dril-Quip, Inc. * (a)	11,500		883,085
McDermott International, Inc. *	108,500		5,229,700
Oceaneering International, Inc. *	41,600		1,496,352
Superior Energy Services, Inc. *	55,200		1,762,536
TETRA Technologies, Inc. *	129,300		3,595,833

			14,911,394
Pharmaceuticals - 1.59%
Amylin Pharmaceuticals, Inc. * (a)	12,300		557,559
Celgene Corp. * (a)	34,300		1,395,667

			1,953,226
Real Estate - 3.51%
Archstone-Smith Trust, REIT	28,400		1,510,312
Camden Property Trust, REIT	23,400		1,815,606
Jones Lang LaSalle, Inc., REIT	11,800		982,468

			4,308,386
Retail Grocery - 1.24%
Safeway, Inc.	49,100		1,518,663
Retail Trade - 4.44%
American Eagle Outfitters, Inc.	48,000		1,854,240
AnnTaylor Stores Corp. *	15,000		597,000
Kohl's Corp. *	29,200		1,825,292
Rent-A-Center, Inc. *	43,300		1,173,430

			5,449,962
Semiconductors - 2.65%
MEMC Electronic Materials, Inc. *	50,100		1,937,868
Micron Technology, Inc. *	37,400		646,272
NVIDIA Corp. *	23,000		669,530

			3,253,670
Software - 0.50%
BEA Systems, Inc. *	45,000		617,850
Steel - 1.48%
Oregon Steel Mills, Inc. *	37,600		1,811,192
Telecommunications Equipment &
Services - 3.20%
Commscope, Inc. *	20,900		610,489
SBA Communications Corp. *	128,788		3,315,003

			3,925,492
Transportation - 1.20%
American Commercial Lines, Inc. * (a)	27,991		1,469,527

TOTAL COMMON STOCKS (Cost $105,705,181)		$	116,457,268

The accompanying notes are an integral part of the financial statements. 424

John Hancock Funds II

Portfolio of investments — August 31, 2006

(showing percentage of total net assets)

Vista Fund (continued)
		Shares or
		Principal
		Amount		Value


SHORT TERM INVESTMENTS - 11.36%
State Street Navigator Securities
Lending Prime Portfolio (c)	$	13,929,842	$	13,929,842

TOTAL SHORT TERM INVESTMENTS
(Cost $13,929,842)			$	13,929,842


REPURCHASE AGREEMENTS - 6.56%
Repurchase Agreement with State
Street Corp. dated 08/31/2006 at
3.95% to be repurchased at
$8,038,882 on 9/1/2006,
collateralized by $8,000,000
Federal Home Loan Mortgage
Corp., 6.065% due 05/16/2016
(valued at $8,201,920, including
interest)	$	8,038,000 $		8,038,000

TOTAL REPURCHASE AGREEMENTS
(Cost $8,038,000)			$	8,038,000

Total Investments (Vista Fund)
(Cost $127,673,023) - 112.90%			$	138,425,110
Liabilities in Excess of Other Assets - (12.90)%				(15,815,407)

TOTAL NET ASSETS - 100.00%			$	122,609,703



Footnotes
Percentages are stated as a percent of net assets.

Key to Currency Abbreviations
ARS	- Argentine Peso
AUD	- Australian Dollar
BRL	- Brazilian Real
CAD	- Canadian Dollar
CHF	- Swiss Franc
COP	- Colombian Peso
CZK	- Czech Koruna
DKK	- Danish Krone
EUR	- European Currency
FIM	- Finnish Markka
FRF	- French Franc
DEM	- German Deutsche Mark
GBP	- British Pound
GRD	- Greek Drachma
HKD	- Hong Kong Dollar
HUF	- Hungarian Forint
IDR	- Indonesian Rupiah
ILS	- Israeli Shekel
INR	- Indian Rupee
ITL	- Italian Lira
IEP	- Irish Punt
JPY	- Japanese Yen
KRW	- South Korean Won
MXN	- Mexican Peso
MYR	- Malaysian Ringgit
NLG	- Netherlands Guilder
NZD	- New Zealand Dollar
NOK	- Norwegian Krone
PHP	- Philippines Peso
PLN	- Polish Zloty
SEK	- Swedish Krona
SGD	- Singapore Dollar
THB	- Thai Baht
TRY	- Turkish Lira
TWD	- Taiwan Dollar
USD	- US Dollar
ZAR	- South African Rand

Key to Security Abbreviations and Legend
ADR	- American Depositary Receipts
ADS	- American Depositary Shares
BKNT	- Bank Note
CDO	- Collateralized Debt Obligation
ESOP	- Employee Stock Ownership Program
EMTN	- European Medium Term Note
EWCO	- European Written Call Option
GDR	- Global Depositary Receipts
GMTN	- Global Medium Term Note
GTD	- Guaranteed
IO	- Interest Only (Carries notional principal amount)
MTN	- Medium Term Note
NIM	- Net Interest Margin
OTC	- Over The Counter
PCL	- Public Company Limited
PIK	- Paid In Kind
PO	- Principal Only
REIT	- Real Estate Investment Trust
REMIC	- Real Estate Mortgage Investment Conduit
SBI	- Shares Beneficial Interest
SADR	- Sponsored American Depositary Receipts
SPDR	- Standard & Poor's Depositary Receipts
TBA	- To Be Announced
TIPS	- Treasury Inflation Protected Security

The accompanying notes are an integral part of the financial statements. 425

John Hancock Funds II

Portfolio of investments — August 31, 2006
(showing percentage of total net assets)

^ Non-Income Producing, issuer is in bankruptcy and is in default of
interest payments
* Non-Income Producing
(a) All or a portion of this security was out on loan
(b) Floating Rate Note
(c) Investment is an affiliate of the Trust's subadvisor or custodian bank
(d) Principal amount of security is adjusted for inflation
(e) Security Fair Valued on August 31, 2006
(f) Term Loan
** Purchased on a forward commitment
*** At August 31, 2006, all or a portion of this security was pledged to cover
forward commitments purchased.
**** At August 31, 2006, all or a portion of this security was pledged to cover
margin requirements for open futures contracts.

The accompanying notes are an integral part of the financial statements. 426

John Hancock Funds II

Notes to Financial Statements

1. ORGANIZATION The John Hancock Funds II (the “Trust”) is a newly organized Trust that was established as a Massachusetts business trust on June 28, 2005. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. It is a series company, which means it has multiple Funds, each with a stated investment objective that it pursues through separate investment policies.

The Trust currently offers sixty-one separate investment funds, fifty-six of which are as follows. The other five funds, the Lifestyle Portfolios are covered in separate reports.

Absolute Return	International Equity Index	Quantitative Value	U.S. Government Securities
Active Bond	International Opportunities	Real Estate Equity	U.S. High Yield Bond
All Cap Core	International Small Cap	Real Estate Securities	U.S. Multi Sector
All Cap Growth	International Small Company	Real Return Bond	Value & Restructuring
All Cap Value	International Stock	Small Cap	Vista
Blue Chip Growth	International Value	Small Cap Index
Capital Appreciation	Investment Quality Bond	Small Cap Opportunities
Core Bond	Large Cap	Small Company
Core Equity	Large Cap Value	Small Company Growth
Emerging Growth	Mid Cap Core	Small Company Value
Emerging Small Company	Mid Cap Index	Special Value
Equity-Income	Mid Cap Stock	Spectrum Income
Fundamental Value	Mid Cap Value	Strategic Bond
Global Bond	Mid Cap Value Equity	Strategic Income
Global Real Estate	Natural Resources	Strategic Value
High Income	Quantitative All Cap	Total Return
High Yield	Quantitative Mid Cap	U.S. Global Leaders Growth

Each of the Funds, with the exception of Absolute Return, Core Equity, Global Bond, Global Real Estate, Natural Resources, Real Estate Equity, Real Estate Securities, Real Return Bond, U.S. Global Leaders Growth, and U.S. Multi Sector, is diversified for purposes of the 1940 Act.

The Absolute Return Portfolio operates as a “Fund of Funds”, investing in Class NAV shares of underlying funds of the Trust, and in shares of John Hancock Funds III and in other permitted investments.

John Hancock Investment Management Services, LLC (“JHIMS” or the “Adviser”), a Delaware limited liability company controlled by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”), serves as investment adviser for the Trust and John Hancock Funds, LLC, an affiliate of the Adviser serves as principal underwriter. John Hancock Life Insurance Company of New York (“John Hancock New York”) is a wholly owned subsidiary of John Hancock USA. John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (“Manulife”), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a publicly traded company. Manulife Financial Corporation and its subsidiaries are known collectively as “Manulife Financial.”

At August 31, 2006 John Hancock USA owned 500,000 shares of beneficial interest of Absolute Return and Quantitative All Cap.

The Trust offers six classes of shares. Class A, Class B and Class C shares are offered by the Absolute Return Portfolio and Quantitative All Cap, Class I shares are offered by Quantitative All Cap, Class 1 shares are offered by all Funds with the exception of All Cap Core, Global Real Estate, High Income, International Equity Index, International Small Company, Mid Cap Index, Mid Cap Value Equity, Quantitative All Cap, Real Estate Equity, Small Cap Index, Small Company Growth, Spectrum Income, Strategic Income, U.S. Multi Sector, Value & Restructuring, and Vista. Class NAV shares are offered by each Fund except the Absolute Return Portfolio, International Stock, Quantitative All Cap and Real Estate Securities. Class A, B, and C shares are open to all retail investors. Class I shares are offered without any sales charge to various institutional and certain individual investors. Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class NAV shares are sold to Absolute Return Portfolio, Lifestyle Portfolios and to certain institutional investors. The shares of each class represent an interest in the same portfolio of investments of the Fund, and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan.

TRANSACTIONS WITH AFFILIATES In accordance with the provisions of Rule 17a-7 under the Investment Company Act of 1940, the following Funds had transactions with other investment companies managed by the Adviser during the period ended August 31, 2006:

	Securities		Securities
Fund	Purchased	Fund	Purchased

Active Bond	$30,301,592	Large Cap Value	$51,521,227
All Cap Growth	98,798,769	Mid Cap Core	38,570,448
All Cap Value	86,922,640	Mid Cap Stock	124,413,857
Blue Chip Growth	316,533,066	Mid Cap Value	110,022,338
Capital Appreciation	73,055,233	Natural Resources	175,862,266
Core Bond	54,735,339	Quantitative Mid Cap	119,725,249
Core Equity	137,955,468	Quantitative Value	218,234,113
Emerging Growth	220,368,575	Real Estate Securities	231,747,990
Emerging Small Company	80,407,901	Real Return Bond	30,716,184
Equity-Income	314,487,283	Small Cap	52,695,271
Fundamental Value	181,255,872	Small Cap Opportunities	72,118,864
Global Bond	144,533,513	Small Company	17,136,629
High Yield	243,144,865	Small Company Value	164,993,124
International Opportunities	84,657,804	Special Value	11,223,102
International Small Cap	93,201,858	Strategic Bond	106,952,521
International Stock	160,507,420	Strategic Value	35,432,428
International Value	279,045,705	Total Return	214,557,112
Investment Quality Bond	59,092,020	U.S. Global Leaders Growth	100,184,303
Large Cap	30,397,391	U.S. Government Securities	33,508,063
		U.S. High Yield Bond	41,274,193

427

John Hancock Funds II

Notes to Financial Statements

ORGANIZATION, CONTINUED

The trades were executed at the last sale price at the end of the day on October 14, 2005. All transactions were executed in accordance with Rule 17a-7 policies and in accordance with the Trust’s Rule 17a-7 procedures.

Effective October 28, 2005, approximately $12 billion of assets held in separate accounts of John Hancock Life Insurance Company (U.S.A.) and invested in certain unaffiliated mutual funds were transferred into the Funds of John Hancock Funds II. All costs associated with the transfer of these assets were borne by the Adviser. In addition, the Adviser or the sub-adviser to the following Funds made payments to the Funds during the period: All Cap Value in the amount of $457,281 effective December 20, 2005; International Opportunities in the amount of $3,948,536 effective December 30, 2005; and Mid Cap Stock in the amount of $1,357,491 effective January 27, 2006. These payments were made to reimburse the Funds for any lost investment opportunity that may have resulted from the timing of the investment of these assets that was effective October 28, 2005. These amounts are included in realized gains in these respective funds.

Merger of International Stock Fund The Board of Trustees voted to transfer on August 30, 2006, substantially all of the value of International Stock Class NAV into the John Hancock Funds III — International Core Fund. Securities with a value of $999,328,193 and unrealized appreciation of $122,941,560 were redeemed in-kind from Class NAV. As part of this tax free merger, $122,941,560 will not be taxable to the remaining shareholders of the International Stock Fund and is included in realized gains in the Fund’s Statement of Operations.

2. SIGNIFICANT ACCOUNTING POLICIES In the preparation of the financial statements, the Funds follow the policies described below. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.

Security Valuation The net asset value of the shares of each Fund is determined daily as of the close of the New York Stock Exchange, normally at 4:00 P.M. Eastern time. Investments in underlying funds of the Fund of Funds Portfolios are valued at their respective net asset values each business day and securities in the underlying funds are valued in accordance with their respective valuation policies, as outlined in the underlying funds’ financial statements. Short-term debt instruments with remaining maturities of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. Investments in State Street Navigator Securities Lending Prime Portfolio are valued at their net asset value each business day. All other securities held by the Funds are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on a principal securities exchange (domestic or foreign) or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Fund securities for which there are no such quotations, principally debt securities, are valued based on the valuation provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques.

Other assets and securities for which no such quotations are readily available are valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange. The values of such securities used in computing the net asset value of a Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the New York Stock Exchange. In such events, these securities will then be valued at their fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

In deciding whether to make a fair value adjustment to the price of a security, the Board of Trustees or their designee may review a variety of factors, including, developments in foreign markets, the performance of U.S. securities markets and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed, but the Fund is calculating the net asset value. In view of these factors, it is likely that Funds investing significant amounts of assets in securities in foreign markets will be fair valued more frequently than Funds investing significant amounts of assets in frequently traded, U.S. exchange listed securities of large capitalization U.S. issuers.

For purposes of determining when fair value adjustments may be appropriate with respect to Funds that invest in securities in foreign markets that close prior to the New York Stock Exchange, the Funds will, on an ongoing basis, monitor for “significant market events.” A “significant market event” may be a certain percentage change in the value of an index or of certain Exchange Traded Funds that track foreign markets in which Funds have significant investments. If a significant market event occurs due to a change in the value of the index or of Exchange Traded Funds, the pricing for all Funds that invest in foreign markets that have closed prior to the New York Stock Exchange will promptly be reviewed and potential adjustments to the net asset value of such Funds will be recommended to the Trust’s Pricing Committee where applicable.

Fair value pricing of securities is intended to help ensure that the net asset value of a Fund’s shares reflects the value of the Fund’s securities as of the close of the New York Stock Exchange (as opposed to a value which is no longer accurate as of such close), thus limiting the opportunity for aggressive traders to purchase shares of a Fund at deflated prices, reflecting stale security valuations, and to promptly sell such shares at a gain. However, a security’s valuation may differ depending on the method used for determining value and no assurance can be given that fair value pricing of securities will successfully eliminate all potential opportunities for such trading gains.

Repurchase Agreements Each Fund may enter into repurchase agreements. When a Fund enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is generally at least 102% of the repurchase amount. Each Fund will take constructive receipt of all securities underlying the repurchase agreements it has entered into until such agreements expire. If the seller defaults, a Fund would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. Each Fund may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser. Collateral for certain tri-party repurchase agreements is held at the custodian bank in a segregated account for the benefit of the Fund and the counterparty.

428

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Foreign Currency Transactions The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of securities, other assets and other liabilities at the current rate of exchange at period end of such currencies against U.S. dollars; and

(ii) purchases and sales of securities, income and expenses at the rate of exchange quoted on the respective dates of such transactions.

Net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of foreign currency contracts, disposition of foreign currencies, the difference between the amount of net investment income accrued and the U.S. dollar amount actually received, and gains and losses between trade and settlement date on purchases and sales of securities. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities.

Certain Funds may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based upon income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation.

Investing in securities of foreign companies and foreign governments involves special risks and consideration not typically associated with investing in securities of domestic companies and the U. S. Government. These risks include revaluation of currencies and future adverse political and economic developments. Moreover, securities of foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of the United States.

Security Transactions and Related Investment Income Investment security and underlying funds transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. Foreign dividends are recorded on the ex-date or as soon after the ex-date that the Fund becomes aware of such dividends, net of all taxes. Discounts/premiums are accreted/amortized for financial reporting purposes. Non-cash dividends are recorded at the fair market value of the securities received. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful, based upon consistently applied procedures. The fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, commitment fees, consent fees, and prepayment fees. These fees are recorded as income in the accompanying financial statements.

Inflation indexed securities are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. Interest is accrued based upon the principal value, which is adjusted for inflation. Principal of inflation index protected securities is increased or decreased by the rate of change in the Consumer Price Index. Interest income includes accretion of discounts and amortization of premiums as well as accretion or amortization of principal of inflation index protected securities.

From time to time, certain of the Funds may invest in Real Estate Investment Trusts (“REITs”) and as a result, will estimate the components of distributions from these securities. Distributions from REITs received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain.

The Funds use specific identification method for determining realized gain or loss on investments for both financial and federal income tax reporting purposes.

Multi-class Operations All income, expenses (except for class-specific expenses) and realized and unrealized gains (losses) are allocated to each class of shares based upon the relative net assets of each class. Dividends to shareholders from net investment income are determined at a class level and distributions from capital gains are determined at a Fund level.

Expense Allocation Expenses not directly attributable to a particular Fund are allocated based on the relative share of net assets of each Fund at the time the expense was incurred. Class-specific expenses, such as Distribution (Rule 12b-1) fees, are accrued daily and charged directly to the respective share classes.

Purchased and Written Options All Funds may purchase and sell put and call options on securities (whether or not it holds the securities in its Fund), securities indices, currencies and futures contracts.

When a Fund writes a put or call option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently “marked-to-market” to reflect the current market value of the option written. If an option expires or if the Fund enters into an offsetting purchase option, the Fund realizes a gain (or loss if the cost of an offsetting purchase option exceeds the premium received when the option was written). If a written call option is exercised, the Fund realizes a gain or loss from the sale of the underlying security with the proceeds of the sale increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security that the Fund purchases upon exercise of the option.

When a Fund purchases a put or call option, the premium paid by the Fund is included in the Portfolio of Investments and subsequently “marked-to-market” to reflect the current market value of the option. If the purchased option expires, the Fund realizes a loss for the cost of the option. If a Fund enters into a closing sale transaction, the Fund realizes a gain or loss, depending on whether proceeds from the closing sale transaction are greater or less than the original cost of the option. If a Fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If a Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid.

The Funds may use options to manage exposure to fluctuations in currency values. Writing puts and buying calls may increase the Fund’s exposure to the underlying instrument. Buying puts and writing calls may decrease the Fund’s exposure to the underlying instrument. Losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts or if the counterparties do not perform under the terms of the contract.

429

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Written options for the period ended August 31, 2006 were as follows:

	Number of Contracts	Premiums Received

Global Bond
Outstanding, beginning of period	—	—
Options written	2,919,402,503	$3,973,008
Option closed	(15,200,000)	(212,346)
Options expired	(76,402,049)	(1,266,834)
Outstanding, end of period	2,827,800,454	$2,493,828


High Income
Outstanding, beginning of period	—	—
Options written	1,000	$517,604
Option closed	—	—
Options expired	—	—
Option exercised	—	—
Outstanding, end of period	1,000	$517,604


Real Return Bond
Outstanding, beginning of period	—	—
Options written	54,802,178	$834,390
Options expired	(13,802,178)	(502,470)
Outstanding, end of period	41,000,000	$331,920


Spectrum Income
Outstanding, beginning of period	—	—
Options written	1	$652
Option closed	—	—
Options exercised	(1)	(652)
Outstanding, end of period	—	$ —


Strategic Bond
Outstanding, beginning of period	—	—
Options written	2,285	$1,261,882
Option closed	(1,110)	(842,233)
Options expired	(434)	(186,175)
Outstanding, end of period	741	$233,474


Total Return
Outstanding, beginning of period	—	—
Options written	295,504,926	$5,082,025
Option closed	(11,000,192)	(234,438)
Options expired	(7,503,180)	(748,729)
Outstanding, end of period	277,001,554	$4,098,858


Value & Restructuring
Outstanding, beginning of period	—	—
Options written	656	$429,163
Option closed	(379)	(304,390)
Options expired	(139)	(54,805)
Option exercised	(138)	(69,968)
Outstanding, end of period	—	$—

The following is a summary of open written options outstanding at August 31, 2006:

Fund	Name of Issuer	Number of Contracts	Exercise Price	Expiration Date	Value

Global Bond	Calls

	Interest Rate Swap 3 Month USD LIBOR	7,800,000	4.85%	Dec 2006	($12,090)
	Interest Rate Swap 3 Month USD LIBOR	28,000,000	5.04%	Mar 2007	(172,928)
	Interest Rate Swap 3 Month USD LIBOR	12,000,000	5.04%	Mar 2007	(74,112)
	Interest Rate Swap 3 Month USD LIBOR	3,000,000	5.04%	Mar 2007	(18,528)
	Interest Rate Swap 3 Month USD LIBOR	14,300,000	5.28%	May 2007	(186,257)
	Interest Rate Swap 3 Month USD LIBOR	81,600,000	5.315%	May 2007	(1,175,532)
	Interest Rate Swap 3 Month USD LIBOR	4,800,000	5.25%	May 2007	(76,258)
	Interest Rate Swap 3 Month USD LIBOR	6,600,000	5.25%	May 2007	(104,854)
	Interest Rate Swap 3 Month USD LIBOR	35,500,000	5.30%	May 2007	(493,308)
	Interest Rate Swap 6 Month GBP LIBOR	2,600,000	4.85%	Jun 2007	(55,668)
	Interest Rate Swap 6 Month GBP LIBOR	2,600,000	4.85%	Jun 2007	(56,141)
	Interest Rate Swap 6 Month JPY LIBOR	1,300,000,000	1.98%	Sep 2006	(182,991)

430

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fund	Name of Issuer	Number of Contracts	Exercise Price	Expiration Date	Value

Global Bond	Calls

	Japanese Yen	24,000,000	JPY 120	May 2007	(183,120)
	British Telecom	5,000,000	$0.20	Jun 2008	(26,524)
	U.S.Treasury 10-Year Note Futures	170	107.00	Nov 2006	(162,031)

		1,527,800,170			($2,980,342)

Global Bond	Puts

	Interest Rate Swap 6 Month JPY LIBOR	1,300,000,000	1.98%	Sep 2006	($5,425)
	U.S.Treasury 10-Year Note Futures	141	$103.00	Nov 2006	(4,406)
	U.S.Treasury 30-Year Bonds Futures	141	104.00	Nov 2006	(4,406)
	U.S.Treasury 30-Year Bonds Futures	2	105.00	Nov 2006	(125)

		1,300,000,284			($14,362)

High Income	Calls

	Freeport McMoran Copper and Gold	55	$55.00	Nov 2006	($31,900)
	Freeport McMoran Copper and Gold	945	60.00	Jan 2007	(444,150)

		1,000			($476,050)

Real Return Bond	Calls

	Interest Rate Swap 3 Month USD LIBOR	14,000,000	5.30%	Jan 2007	($169,301)
	Interest Rate Swap 3 Month USD LIBOR	11,000,000	5.34%	Jun 2007	(173,034)
	Interest Rate Swap 3 Month USD LIBOR	2,000,000	5.325%	Jun 2007	(30,682)

		27,000,000			($373,017)

	Puts

	Interest Rate Swap 3 Month USD LIBOR	8,000,000	5.90%	Jan 2007	($6,842)
	Interest Rate Swap 3 Month USD LIBOR	6,000,000	6.10%	Jan 2007	(1,867)

		14,000,000			($8,709)

Strategic Bond	Calls

	Eurodollar Futures	27	$94.375	Sep 2006	($15,525)
	Eurodollar Futures	38	94.50	Sep 2006	(10,212)
	Eurodollar Futures	188	94.75	Sep 2006	(1,175)
	Eurodollar Futures	11	94.875	Sep 2006	(69)
	U.S.Treasury 5-Year Note Futures	45	104.50	Nov 2006	(40,781)
	U.S.Treasury 10-Year Note Futures	119	107.00	Nov 2006	(113,422)
	U.S.Treasury 10-Year Note Futures	85	108.00	Nov 2006	(45,156)
	U.S.Treasury 10-Year Note Futures	27	109.00	Nov 2006	(7,172)
	U.S.Treasury 30-Year Bonds Futures	2	111.00	Nov 2006	(2,656)

		542			($236,168)

	Puts

	Eurodollar Futures	16	$94.50	Sep 2006	($200)
	Eurodollar Futures	54	94.625	Sep 2006	(3,712)
	Eurodollar Futures	10	94.50	Dec 2006	(875)
	U.S.Treasury 10-Year Note Futures	5	104.00	Nov 2006	(313)
	U.S.Treasury 10-Year Note Futures	27	105.00	Nov 2006	(3,797)
	U.S.Treasury 30-Year Bonds Futures	54	100.00	Nov 2006	(844)
	U.S.Treasury 30-Year Bonds Futures	27	103.00	Nov 2006	(422)
	U.S.Treasury 30-Year Bonds Futures	6	107.00	Nov 2006	(1,125)

		199			($11,288)

431

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED
Fund	Name of Issuer	Number of Contracts	Exercise Price	Expiration Date	Value

Total Return	Calls

	Eurodollar Futures	38	$95.50	Sep 2006	($237)
	Interest Rate Swap 3 Month USD LIBOR	12,000,000	4.85%	Dec 2006	(18,600)
	Interest Rate Swap 3 Month USD LIBOR	11,900,000	5.24%	Feb 2007	(116,555)
	Interest Rate Swap 3 Month USD LIBOR	13,000,000	5.04%	Mar 2007	(80,288)
	Interest Rate Swap 3 Month USD LIBOR	7,000,000	5.04%	Mar 2007	(43,232)
	Interest Rate Swap 3 Month USD LIBOR	26,800,000	5.315%	May 2007	(386,082)
	Interest Rate Swap 3 Month USD LIBOR	22,000,000	5.30%	May 2007	(305,712)
	Interest Rate Swap 3 Month USD LIBOR	4,000,000	5.325%	Jun 2007	(61,365)
	Interest Rate Swap 3 Month USD LIBOR	23,000,000	5.34%	Jun 2007	(361,798)
	Interest Rate Swap 3 Month USD LIBOR	23,000,000	5.60%	Jun 2007	(543,095)
	Interest Rate Swap 3 Month USD LIBOR	36,300,000	5.50%	Jul 2007	(900,867)
	Interest Rate Swap 3 Month USD LIBOR	62,000,000	5.37%	Jul 2007	(1,056,378)
	Interest Rate Swap 6 Month EURIBOR	4,000,000	4.10%	Jul 2007	(80,387)
	Interest Rate Swap 6 Month EURIBOR	9,000,000	4.23%	Jul 2007	(218,780)
	Interest Rate Swap 6 Month EURIBOR	14,000,000	4.10%	Jul 2007	(281,353)
	Interest Rate Swap 6 Month EURIBOR	9,000,000	4.10%	Jul 2007	(180,870)
	U.S.Treasury 30-Year Bonds Futures	321	111.00	Nov 2006	(426,328)

		277,000,359			($5,061,927)

	Puts

	Eurodollar Futures	50	$95.00	Sep 2006	($49,375)
	Eurodollar Futures	627	95.25	Dec 2006	(936,581)
	Eurodollar Futures	88	95.00	Dec 2006	(79,200)
	Eurodollar Futures	34	95.50	Dec 2006	(71,825)
	Eurodollar Futures	40	95.25	Mar 2007	(50,500)
	Eurodollar Futures	36	94.75	Mar 2007	(13,950)
	U.S.Treasury 30-Year Bonds Futures	169	105.00	Nov 2006	(10,563)
	U.S.Treasury 30-Year Bonds Futures	151	104.00	Nov 2006	(4,719)

		1,195			($1,216,713)


The following is a summary of forward volatility options with premiums to be determined on a future date outstanding at August 31, 2006:
			Notional	Unrealized
Fund	Name of Issuer		Amount	Depreciation

Global Bond	Call & Put

	U.S. Dollar Forward Delta/Neutral Straddle vs. Japanese Yen
	Strike and premium determined on 2/13/2007,
	based upon implied volatility parament of 8.80%		$17,900,000	($22,769)

	U.S. Dollar Forward Delta/Neutral Straddle vs. Japanese Yen
	Strike and premium determined on 1/17/2007,
	based upon implied volatility parament of 8.75%		$10,500,000	(9,182)

				($31,951)

Securities Lending All Funds, with the exception of Absolute Return, may lend securities in amounts up to 33¹/₃% of each Fund’s total non-cash assets to brokers, dealers and other financial institutions, provided such loans are callable at any time and are at all times fully secured by cash, cash equivalents or securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, marked to market to the value of the loaned securities on a daily basis. The Funds may bear the risk of delay in recovery of, or even of rights in, the securities loaned should the borrower of the securities fail financially. Consequently, loans of Fund securities will only be made to firms deemed by the subadvisers to be creditworthy. The Funds receive compensation for lending their securities either in the form of fees or by retaining a portion of interest on the investment of any cash received as collateral. Cash collateral is invested in the State Street Navigator Securities Lending Prime Portfolio.

432

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

All collateral received will be in an amount equal to at least 100% of the market value of the loaned securities and is intended to be maintained at that level during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund the next business day. During the loan period, the Fund continues to retain rights of ownership, including dividends and interest of the loaned securities. As of August 31, 2006 the values of securities loaned, cash and securities collateral were as follows:

Fund	Value of Securities Loaned	Value of Cash Collateral	Value of Securities Collateral

Active Bond	$81,697,633	$83,363,396	—
All Cap Core	12,028,205	12,324,387	—
All Cap Growth	6,928,300	7,097,453	—
All Cap Value	16,658,524	17,067,785	—
Blue Chip Growth	47,949,100	48,982,997	—
Capital Appreciation	18,108,656	18,532,002	—
Core Bond	18,991,238	19,381,094	—
Emerging Growth	37,271,615	38,275,542	—
Equity-Income	40,404,082	41,370,005	—
Fundamental Value	22,455,397	22,927,961	—
Global Bond	9,124,648	9,309,000	—
Global Real Estate	41,422,785	43,240,359	—
High Income	59,127,174	60,455,958	—
High Yield	279,406,317	285,165,979	—
International Equity Index	56,232,027	59,053,314	—
International Opportunities	102,487,713	107,481,210	—
International Small Cap	46,558,890	49,186,127	—
International Small Company	37,750,230	39,707,208	$7,162
International Stock	978,177	1,028,026	—
International Value	100,205,333	104,966,722	—
Investment Quality Bond	30,020,994	30,637,942	—
Large Cap	6,464,141	6,601,703	—
Large Cap Value	14,553,765	14,896,485	—
Mid Cap Core	19,407,625	19,867,086	—
Mid Cap Index	30,056,185	30,804,574	—
Mid Cap Stock	71,681,651	73,452,448	—
Mid Cap Value	20,377,144	20,909,218	—
Mid Cap Value Equity	16,791,394	17,229,156	—
Natural Resources	71,298,145	72,883,888	—
Quantitative Mid Cap	41,490,539	42,435,825	—
Quantitative Value	24,016,341	24,592,740	—
Real Estate Equity	33,658,317	34,447,109	—
Real Return Bond	11,000,333	11,227,436	—
Small Cap	54,437,362	55,917,662	—
Small Cap Index	31,219,839	32,156,326	6,563
Small Cap Opportunities	61,872,659	63,456,325	—
Small Company	22,846,131	23,408,260	—
Small Company Value	93,113,462	95,479,263	—
Special Value	30,324,584	31,115,018	—
Spectrum Income	81,569,665	83,287,899	—
Strategic Bond	48,170,381	49,146,472	—
Strategic Income	69,120,975	70,775,414	—
Strategic Value	13,033,306	13,329,847	—
Total Return	27,645,085	28,221,891	—
U.S. Global Leaders Growth	2,766,722	2,825,622	—
U.S. High Yield Bond	35,968,218	36,710,913	—
U.S. Multi Sector	57,531,004	59,044,947	—
Value & Restructuring	41,400,946	42,492,506	—
Vista	13,612,271	13,929,842	—

Dollar Rolls All Funds, with the exception of Absolute Return, may enter into mortgage dollar rolls in which they sell debt securities for delivery currently and simultaneously contract to repurchase similar, but not identical, securities at the same price or a lower price on an agreed upon date. The Funds receive compensation as consideration for entering into the commitment to repurchase. The compensation is the difference between the current sale price and the forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. A Fund may also be compensated by the receipt of a commitment fee. As the holder, the counterparty receives all principal and interest payments, including prepayments, made with respect to the similar security. Dollar rolls may be renewed with a new sale and repurchase price with a cash settlement made at renewal without physical delivery of the securities subject to the contract.

433

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Futures All Funds may purchase and sell financial futures contracts and options on those contracts. The Funds invest in contracts based on financial instruments such as U.S. Treasury Bonds or Notes on securities indices such as the S&P 500 Index, in order to hedge against a decline in the value of securities owned by the Funds.

Upon entering into futures contracts, a Fund is required to deposit with a broker an amount, termed the initial margin, which typically represents a certain percentage of the purchase price indicated in the futures contract. Payments to and from the broker, known as variation margin, are required to be made on a daily basis as the price of the futures contract fluctuates, making the long or short positions in the contract more or less valuable. If the position is closed out by taking an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made, cash is required to be paid to or released by the broker, and the Fund realizes a gain or loss.

When a Fund sells a futures contract based on a financial instrument, the Fund becomes obligated to deliver that kind of instrument at an agreed upon date for a specified price. The Fund realizes a gain or loss depending on whether the price of an offsetting purchase is less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase. The Fund could be exposed to risks if it could not close out futures positions because of an illiquid secondary market or the inability of counterparties to meet the terms of their contracts. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.

The following is a summary of open futures contracts at August 31, 2006:

						Unrealized
Fund	Open Contracts	Number of Contracts		Position	Expiration Date	Appreciation (Depreciation)

Global Bond	5 Year German Euro-BOBL		666	Long	Sep 2006	$1,040,236
	5 Year German Euro-BOBL		334	Long	Dec 2006	68,363
	10 Year German Euro-BUND		190	Long	Sep 2006	507,748
	10 Year German Euro-BUND		36	Long	Dec 2006	6,668
	Canadian Bankers' Acceptance		230	Long	Dec 2006	135,635
	Eurodollar		275	Long	Sep 2006	(337,963)
	Eurodollar		88	Long	Dec 2006	18,700
	Eurodollar		417	Long	Jun 2007	182,437
	Eurodollar		222	Long	Sep 2007	188,700
	Eurodollar		35	Long	Sep 2008	24,500
	Eurodollar		35	Long	Dec 2008	24,500
	Eurodollar		35	Long	Mar 2009	24,063
	Eurodollar		35	Long	Jun 2009	24,062
	Japan 10 Year Government Bonds		46	Long	Sep 2006	1,190,405
	Japan 10 Year Government Bonds		31	Long	Dec 2006	59,052
	U.S. Treasury 5-Year Note		1,278	Long	Dec 2006	313,756
	U.S. Treasury 10-Year Note		172	Long	Dec 2006	75,250
	U.S. Treasury 30-Year Bonds		90	Long	Sep 2006	241,875
	Canadian Bankers' Acceptance		230	Short	Jun 2007	(171,938)

						$3,616,049

International Equity Index	All Share Index		95	Long	Sep 2006	$429,475
	CAC 40 10 Euro Index		6	Long	Sep 2006	11,002
	DAX Index		1	Long	Sep 2006	1,421
	FTSE 100 Index		9	Long	Sep 2006	19,157
	IBEX 35 Index		1	Long	Sep 2006	1,479
	MSCI Taiwan Stock Index		193	Long	Sep 2006	112,839
	OMX 30 Index		9	Long	Sep 2006	1,917
	S&P/Canada 60 Index		2	Long	Sep 2006	4,240
	SPI 200 Future		2	Long	Sep 2006	3,772
	TOPIX Index		7	Long	Sep 2006	23,472

						$608,774

International Stock	DAX Index		13	Long	Sep 2006	$66,503
	MSCI Singapore Stock Index		13	Long	Sep 2006	7,382
	TOPIX Index		9	Long	Sep 2006	93,467
	CAC 40 10 Euro Index		4	Short	Sep 2006	(2,368)
	EOE Dutch Stock Index		1	Short	Sep 2006	(1,237)
	FTSE 100 Index		12	Short	Sep 2006	(6,485)
	OMX 30 Index		3	Short	Sep 2006	(840)
	S&P/Toronto Stock Exchange 60 Index		12	Short	Sep 2006	(14,631)
	SPI 200 Index		5	Short	Sep 2006	(15,388)

						$126,403

434

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

						Unrealized
Fund	Open Contracts	Number of Contracts		Position	Expiration Date	Appreciation (Depreciation)

Investment Quality Bond	U.S. Treasury 5-Year Note		26	Short	Dec 2006	($6,579)
	U.S. Treasury 10-Year Note		55	Short	Dec 2006	(44,319)

						($50,898)

Mid Cap Index	S&P Mid Cap 400 Index		31	Long	Sep 2006	$232,383

						$232,383

Real Return Bond	Eurodollar		141	Long	Dec 2006	($205,075)
	Eurodollar		249	Long	Mar 2007	(308,375)
	Eurodollar		120	Long	Jun 2007	(116,325)
	Eurodollar		249	Long	Sep 2007	(150,013)
	Eurodollar		108	Long	Dec 2007	(57,950)
	Eurodollar		65	Long	Sep 2008	12,187
	Eurodollar		65	Long	Dec 2008	12,188
	Eurodollar		65	Long	Mar 2009	11,375
	Eurodollar		65	Long	Jun 2009	13,000
	U.S. Treasury 5-Year Note		50	Long	Dec 2006	11,719
	U.S. Treasury 10-Year Note		201	Long	Dec 2006	87,938
	U.S. Treasury 30-Year Bonds		72	Short	Dec 2006	(9,000)

						($698,331)

Small Cap Index	Russell 2000 Index		14	Long	Sep 2006	$199,152

						$199,152

Spectrum Income	U.S. Treasury 5-Year Note		21	Long	Dec 2006	$6,478
	U.S. Treasury 10-Year Note		33	Long	Dec 2006	13,531
	U.S. Treasury 30-Year Bonds		7	Long	Dec 2006	5,003
	10 Year Mini Japan Government Bond		10	Short	Sep 2006	(33,017)
	U.S. Treasury 10-Year Note		17	Short	Dec 2006	(4,295)
	U.S. Treasury 30-Year Bonds		8	Short	Dec 2006	(5,782)

						($18,082)

Strategic Bond	Eurodollar		10	Long	Sep 2006	$2,637
	Eurodollar		33	Long	Dec 2006	11,210
	Eurodollar		13	Long	Mar 2007	8,523
	Eurodollar		9	Long	Mar 2008	6,930
	Japanese Yen		225	Long	Sep 2006	(664,788)
	U.S. Treasury 30-Year Bonds		4	Long	Sep 2006	4,980
	Euro Currency		100	Short	Sep 2006	89,500
	Eurodollar		16	Short	Sep 2007	(4,230)
	U.S. Treasury 5-Year Note		307	Short	Dec 2006	(55,816)
	U.S. Treasury 10-Year Note		243	Short	Sep 2006	(166,136)
	U.S. Treasury 10-Year Note		352	Short	Dec 2006	(171,689)
	U.S. Treasury 30-Year Bonds		247	Short	Dec 2006	(325,860)

						($1,264,739)

435

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

					Unrealized
Fund	Open Contracts	Number of Contracts	Position	Expiration Date	Appreciation (Depreciation)

Total Return	5 Year German Euro-BOBL	35	Long	Sep 2006	$40,296
	5 Year German Euro-BOBL	18	Long	Dec 2006	3,684
	10 Year German Euro-BUND	22	Long	Sep 2006	48,923
	10 Year German Euro-BUND	4	Long	Dec 2006	662
	Eurodollar	1,872	Long	Dec 2006	(823,550)
	Eurodollar	1,563	Long	Mar 2007	(1,261,775)
	Eurodollar	1,818	Long	Jun 2007	(730,525)
	Eurodollar	1,655	Long	Sep 2007	(81,116)
	Eurodollar	907	Long	Dec 2007	476,450
	Eurodollar	178	Long	Mar 2008	144,725
	Eurodollar	39	Long	Jun 2008	26,813
	LIBOR	43	Long	Jun 2007	3,067
	LIBOR	76	Long	Sep 2007	11,391
	LIBOR	48	Long	Dec 2007	8,744
	U.S. Treasury 5-Year Note	344	Long	Dec 2006	80,627
	U.S. Treasury 10-Year Note	621	Long	Dec 2006	213,622
	U.S. Treasury 30-Year Bonds	93	Long	Sep 2006	257,531

					($1,580,431)

U.S. Government Securities	U.S. Treasury 2-Year Note	11	Long	Dec 2006	$2,867
	U.S. Treasury 5-Year Note	102	Long	Dec 2006	35,803
	U.S. Treasury 30-Year Bonds	15	Long	Dec 2006	11,175
	U.S. Treasury 10-Year Note	20	Short	Sep 2006	(35,881)
	U.S. Treasury 10-Year Note	49	Short	Dec 2006	(25,050)

					($11,086)

U.S. Multi Sector	S&P 500 Index	110	Long	Sep 2006	$993,904

					$993,904

Swap Contracts All Funds may enter into interest rate swaps. Interest rate swaps involve the exchange of commitments to pay or receive interest of one instrument for that of another instrument (for example, an exchange of floating rate payments for fixed rate payments with respect to a notional principal amount). The Funds settle accrued net receivable or payable balances under the swap contracts on a periodic basis. Accrued interest receivable or payable on the swap contracts is recorded as realized gain or loss. The Funds record changes in the value of the swaps as unrealized gains or losses on swap contracts.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as “guarantor” receiving periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. Certain Funds may enter into credit default swaps in which either they or their counterparties act as guarantors. By acting as the guarantor of a swap, a Fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value.

Swap contracts are subject to risks related to the counterparty’s ability to perform under the contract, and may decline in value if the counterparty’s creditworthiness deteriorates. The risks may arise from unanticipated movement in interest rates. The Funds may also suffer losses if it is unable to terminate outstanding swap contracts or reduce its exposure through offsetting transactions.

The Funds had the following interest rate swap contracts open at August 31, 2006:

						Unrealized
	Notional		Payments Made	Payments Received	Termination	Appreciation
Fund	Amount	Currency	by Fund	by Fund	Date	(Depreciation)

Global Bond
	$6,000,000	AUD	6 Month BBR-BBSW	Fixed 6.00%	Jun 2009	($19,789)
	18,200,000	AUD	6 Month BBA-BBSW	Fixed 6.00%	Dec 2011	(126,981)
	10,500,000	AUD	Fixed 6.00%	6 Month BBA-BBSW	Dec 2016	84,426
	1,500,000	EUR	Fixed 4.00%	6 Month EURIBOR	Dec 2011	(13,669)
	14,600,000	EUR	Fixed 4.00%	6 Month EURIBOR	Dec 2011	(133,045)
	27,600,000	EUR	Fixed 4.00%	6 Month EURIBOR	Dec 2011	(251,509)
	13,400,000	EUR	Fixed 4.00%	6 Month EURIBOR	Dec 2014	(51,875)
	15,900,000	EUR	Fixed 4.00%	6 Month EURIBOR	Dec 2014	(61,553)
	18,500,000	EUR	Fixed 4.00%	6 Month EURIBOR	Dec 2014	(71,618)
	400,000	EUR	6 Month EURIBOR	Fixed 6.00%	Jun 2034	72,833
	500,000	EUR	6 Month EURIBOR	Fixed 6.00%	Jun 2034	92,199
	13,600,000	EUR	6 Month EURIBOR	Fixed 6.00%	Jun 2034	2,476,314
	80,000,000	GBP	6 Month LIBOR	Fixed 5.00%	Jun 2009	(438,661)
	5,300,000	GBP	6 Month LIBOR	Fixed 5.00%	Sep 2010	(43,478)
	9,400,000	GBP	6 Month LIBOR	Fixed 5.00%	Sep 2010	(77,113)

436

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

						Unrealized
	Notional		Payments Made	Payments Received	Termination	Appreciation
Fund	Amount	Currency	by Fund	by Fund	Date	(Depreciation)

Global Bond
	18,700,000	GBP	6 Month LIBOR	Fixed 5.00%	Sep 2010	(153,405)
	200,000	GBP	6 Month LIBOR	Fixed 5.00%	Sep 2015	1,529
	2,100,000	GBP	6 Month LIBOR	Fixed 5.00%	Sep 2015	16,051
	12,700,000	GBP	Fixed 4.50%	6 Month LIBOR	Sep 2017	10,376
	2,300,000	GBP	Fixed 4.10%	6 Month LIBOR	Jun 2036	258,950
	23,400,000,000	JPY	6 Month LIBOR	Fixed 1.00%	Mar 2008	469,921
	2,700,000,000	JPY	6 Month LIBOR	Fixed 1.00%	Sep 2008	23,663
	5,900,000,000	JPY	Fixed 1.50%	6 Month LIBOR	Dec 2010	(626,753)
	4,100,000,000	JPY	Fixed 2.00%	6 Month LIBOR	Dec 2013	(1,095,952)
	4,200,000	USD	3 Month LIBOR	Fixed 5.00%	Dec 2011	(30,665)
	30,600,000	USD	Fixed 5.00%	3 Month LIBOR	Dec 2011	223,827
	71,100,000	USD	3 Month LIBOR	Fixed 5.00%	Dec 2011	520,068
	20,300,000	USD	Fixed 5.00%	3 Month LIBOR	Dec 2016	448,707
	2,300,000	USD	3 Month LIBOR	Fixed 5.00%	Dec 2036	(139,331)
	5,100,000	USD	3 Month LIBOR	Fixed 5.00%	Dec 2036	(308,952)
	5,100,000	USD	3 Month LIBOR	Fixed 5.00%	Dec 2036	(308,952)
	13,100,000	USD	3 Month LIBOR	Fixed 5.00%	Dec 2036	(793,583)

						($48,020)

Real Return Bond
	$2,200,000	EUR	FRCPXTOB	Fixed 2.04%	Feb 2011	($10,817)
	5,500,000	EUR	FRCPXTOB	Fixed 2.1375%	Jan 2016	(42,234)
	1,500,000	GBP	Fixed 4.25%	6 Month LIBOR-BBA	Jun 2036	100,227
	2,300,000	USD	3 Month LIBOR-BBA	Fixed 5.00%	Dec 2008	(6,714)
	2,400,000	USD	3 Month LIBOR-BBA	Fixed 5.00%	Dec 2008	(7,006)
	126,000,000	USD	3 Month LIBOR-BBA	Fixed 5.00%	Jun 2009	21,189
	3,100,000	USD	Fixed 5.00%	3 Month LIBOR-BBA	Dec 2013	40,286
	1,400,000	USD	Fixed 5.00%	3 Month LIBOR-BBA	Dec 2016	30,945
	6,700,000	USD	Fixed 5.00%	3 Month LIBOR-BBA	Dec 2021	250,562
	7,100,000	USD	Fixed 5.00%	3 Month LIBOR-BBA	Dec 2026	347,399
	11,500,000	USD	Fixed 5.00%	3 Month LIBOR-BBA	Dec 2036	696,656
	6,400,000	USD	Fixed 5.00%	3 Month LIBOR-BBA	Dec 2036	387,705

						$1,808,198

Total Return
	$5,500,000	EUR	6 Month EURIBOR	Fixed 6.00%	Jun 2034	$1,001,450
	400,000	GBP	Fixed 4.00%	6 Month LIBOR BBA	Dec 2035	5,891
	20,400,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2008	(59,548)
	20,000,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2011	(146,292)
	2,600,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2013	(37,448)
	16,500,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2016	(364,713)
	1,300,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2035	(53,418)
	2,700,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2036	(163,563)
	1,700,000	USD	3 Month LIBOR BBA	Fixed 5.00%	Dec 2036	(102,984)

						$79,375

437

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

The Funds had the following credit default swap contracts open on August 31, 2006:
							Unrealized
				Buy/Sell	(Pay)/Receive	Termination	Appreciation
Fund	Default Amount	Issuer	Notional Amount	Protection†	Fixed Rate	Date	(Depreciation)

Global Bond
	$10,000,000	Federative Republic of Brazil	$4,100,000	Sell	1.38%	Aug 2011	$14,677
	10,000,000	Federative Republic of Brazil	2,300,000	Buy	(2.18)	Aug 2016	(18,120)
	10,000,000	Federative Republic of Brazil	2,000,000	Sell	1.37	Aug 2011	6,302
	10,000,000	Federative Republic of Brazil	1,100,000	Buy	(2.16)	Aug 2016	(7,105)
	10,000,000	Federative Republic of Brazil	1,500,000	Buy	(2.135)	Aug 2016	(7,028)
	10,000,000	Federative Republic of Brazil	2,700,000	Sell	1.345	Aug 2011	5,617
	10,000,000	Federative Republic of Brazil	4,000,000	Sell	1.34	Aug 2011	7,465
	10,000,000	Federative Republic of Brazil	2,200,000	Buy	(2.13)	Aug 2016	(9,527)
	10,000,000	Federative Republic of Brazil	5,000,000	Sell	1.28	Aug 2011	(3,524)
	10,000,000	Federative Republic of Brazil	2,800,000	Buy	(2.06)	Aug 2016	1,784
	10,000,000	Federative Republic of Brazil	3,100,000	Sell	1.35	Aug 2011	7,113
	10,000,000	Federative Republic of Brazil	1,700,000	Buy	(2.14)	Aug 2016	(8,568)
	10,000,000	Russian Federation	1,800,000	Sell	0.30	Sep 2006	172

							($10,742)
Total Return
	$10,000,000	General Motors Acceptance Corp.	$4,600,000	Sell	2.10%	Dec 2006	$21,484
	10,000,000	Federative Republic of Brazil	900,000	Sell	1.66	Mar 2013	1,116
	10,000,000	Russian Federation	300,000	Sell	0.39	Sep 2006	45

							$22,645
† If the fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the fund will pay to the buyer of the protection an amount up to the
notional value of the swap and in certain instances, take delivery of the security.

BBA — British Bankers Association
BBSW — Bank Bill Swap Rates
BBR — Bank Bill Rate
CDOR — Canadian Dollar Offered Rate
CBK — Canada Bankers Acceptance
FRCPXTOB — French CPI Ex Tobacco

Currency symbols are defined as follows:

AUD Australian Dollar
EUR European Currency
GBP British Pound
JPY Japanese Yen

Forward Foreign Currency Contracts All Funds, with the exception of U.S. Government Securities, may purchase and sell forward foreign currency contracts in order to hedge a specific transaction or Fund position. Forward foreign currency contracts are valued at forward foreign currency exchange rates and marked to market daily. Net realized gains (losses) on foreign currency and forward foreign currency contracts shown in the Statements of Operations include net gains or losses realized by a Fund on contracts that have matured.

The net U.S. dollar value of foreign currency underlying all contractual commitments held at the end of the period, the resulting net unrealized appreciation (depreciation) and related net receivable or payable amount are determined using forward foreign currency exchange rates supplied by a quotation service. The Funds could be exposed to risks in excess of amounts recognized on the Statements of Assets and Liabilities if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the forward foreign currency contract changes unfavorably.

At August 31, 2006 certain Funds entered into forward foreign currency contracts, which contractually obligate the Funds to deliver currencies at future dates. Open forward foreign currency contracts at August 31, 2006 were as follows:

				Unrealized
		Principal Amount	Settlement	Appreciation
Fund	Currency	Covered by Contract	Date	(Depreciation)

Global Bond	Buys

	Australian Dollar	1,295,800	Sep 2006	$1,114
	Australian Dollar	2,650,000	Sep 2006	12,684
	Australian Dollar	6,471,000	Sep 2006	3,221
	Australian Dollar	1,958,000	Sep 2006	(813)
	Australian Dollar	1,213,000	Sep 2006	4,249
	Canadian Dollar	13,836,000	Sep 2006	372,783
	Chilean Peso	56,050,000	Sep 2006	879

438

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

				Unrealized
		Principal Amount	Settlement	Appreciation
Fund	Currency	Covered by Contract	Date	(Depreciation)

Global Bond	Buys

	Chilean Peso	56,050,000	Sep 2006	$614
	Chinese Yuan Renminbi	2,375,000	Mar 2007	(4,576)
	Chinese Yuan Renminbi	1,662,000	Mar 2007	(3,119)
	Chinese Yuan Renminbi	20,396,936	May 2007	(41,869)
	Chinese Yuan Renminbi	12,748,556	May 2007	(25,816)
	Chinese Yuan Renminbi	2,974,000	May 2007	(6,485)
	Chinese Yuan Renminbi	14,957,092	Aug 2007	(7,875)
	Chinese Yuan Renminbi	13,844,137	Aug 2007	(5,661)
	Danish Krone	27,028,000	Sep 2006	(30,854)
	Euro	38,081,000	Sep 2006	(85,603)
	Euro	520,000	Sep 2006	(5,561)
	Indian Rupee	7,958,000	Feb 2007	674
	Japanese Yen	19,263,992,000	Sep 2006	(1,418,685)
	Japanese Yen	51,600,000	Sep 2006	(4,295)
	Japanese Yen	62,000,000	Sep 2006	(7,462)
	Mexican Peso	1,503,150	Dec 2006	305
	Mexican Peso	1,526,850	Dec 2006	340
	New Taiwan Dollar	31,798,000	Feb 2007	(9,960)
	New Taiwan Dollar	23,926,000	Feb 2007	(6,258)
	Polish Zloty	33,770	Nov 2006	25
	Polish Zloty	46,230	Nov 2006	26
	Pound Sterling	18,387,000	Sep 2006	803,571
	Pound Sterling	298,000	Sep 2006	3,499
	Pound Sterling	688,000	Sep 2006	(6,076)
	Singapore Dollar	1,829,000	Sep 2006	(1,488)
	South African Rand	379,000	Oct 2006	(2,219)
	South Korean Won	1,446,869,000	Feb 2007	1,489
	Swedish Krona	33,619,000	Sep 2006	(42,552)

				($511,754)

	Sells

	Canadian Dollar	1,944,651	Sep 2006	($41,938)
	Euro	22,426,598	Sep 2006	(227,115)
	Japanese Yen	8,535,656	Sep 2006	18,229
	Japanese Yen	12,506,803	Sep 2006	232,833
	New Taiwan Dollar	546,207	Sep 2006	17,608
	New Zealand Dollar	2,008,568	Sep 2006	(50,532)
	New Zealand Dollar	4,932,448	Sep 2006	(99,907)
	New Zealand Dollar	1,493,758	Sep 2006	3,179

				($147,643)

High Income	Sells

	Canadian Dollar	9,944,578	Sep 2006	($184,378)

				($184,378)

International Equity Index	Buys

	Australian Dollar	125,000	Sep 2006	$4,098
	Australian Dollar	125,000	Sep 2006	526
	Canadian Dollar	127,000	Sep 2006	1,535
	Canadian Dollar	137,000	Sep 2006	502
	Euro	97,000	Sep 2006	1,771
	Euro	490,000	Sep 2006	229
	Japanese Yen	65,000,000	Sep 2006	(4,182)
	Japanese Yen	46,200,000	Sep 2006	(6,902)
	Pound Sterling	228,000	Sep 2006	18,258
	Pound Sterling	294,000	Sep 2006	1,541
	South African Rand	17,940,000	Sep 2006	64,808
	Swedish Krona	838,000	Sep 2006	761

				$82,945

439

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

				Unrealized
		Principal Amount	Settlement	Appreciation
Fund	Currency	Covered by Contract	Date	(Depreciation)

International Stock	Buys

	Japanese Yen	386,100,000	Nov 2006	($7,466)
	Norwegian Krone	11,200,000	Nov 2006	(12,832)
	Swedish Krona	18,560,000	Nov 2006	(15,425)
	Swiss Franc	5,383,000	Nov 2006	($32,598)

				($68,321)

	Sells

	Australian Dollar	1,068,362	Nov 2006	$2,064
	Euro	5,116,637	Nov 2006	26,278
	Pound Sterling	4,010,084	Nov 2006	10,924

				$39,266

Global Real Estate	Buys

	Australian Dollar	3,179,000	Sep 2006	$9,886
	Hong Kong Dollar	19,371,000	Sep 2006	238

				$10,124

	Sells

	Australian Dollar	38,615,916	Sep 2006	($46,635)
	Canadian Dollar	10,935,782	Sep 2006	(39,235)
	Danish Krone	1,897,759	Sep 2006	(531,303)
	Euro	35,150,529	Sep 2006	(84,024)
	Hong Kong Dollar	23,573,185	Sep 2006	2,301
	Japanese Yen	50,751,729	Sep 2006	387,502
	Pound Sterling	44,895,287	Sep 2006	(311,123)
	Singapore Dollar	9,924,211	Sep 2006	(35,838)
	Swedish Krona	5,991,407	Sep 2006	30,830

				($627,525)

Real Return Bond	Buys

	Japanese Yen	1,190,106,000	Nov 2006	($200,724)
	Japanese Yen	1,190,106,000	Nov 2006	(227,858)

				($428,582)

	Sells

	Canadian Dollar	482,281	Sep 2006	($14,818)
	Euro	106,073,073	Sep 2006	(227,782)

				($242,600)

Spectrum Income	Buys

	Australian Dollar	280,351	Nov 2006	($120)
	Brazilian Real	541,200	Jan 2007	(1,398)
	Canadian Dollar	2,180,884	Nov 2006	1,608
	Chinese Yuan Renminbi	5,099,277	Oct 2006	(9,953)
	Czech Koruna	3,360,168	Nov 2006	(1,243)
	Danish Krone	267,039	Nov 2006	5
	Euro	2,751,646	Nov 2006	(6,912)
	Hungarian Forint	36,861,000	Nov 2006	(79)
	Japanese Yen	1,778,637,396	Nov 2006	(184,184)
	Malaysian Ringgit	223,328	Nov 2006	(61)
	Norwegian Krone	930,000	Nov 2006	(1,305)
	Philippine Peso	25,857,740	Sep 2006	$9,023
	Philippine Peso	21,929,860	Oct 2006	13,367
	Polish Zloty	241,230	Nov 2006	(553)
	Pound Sterling	295,255	Nov 2006	273
	Singapore Dollar	336,775	Nov 2006	17
	South Korean Won	2,036,867,000	Nov 2006	6,447
	Swedish Krona	9,831,847	Nov 2006	(20,849)
	Thailand Baht	6,977,928	Nov 2006	(120)

				($196,037)

440

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

				Unrealized
		Principal Amount	Settlement	Appreciation
Fund	Currency	Covered by Contract	Date	(Depreciation)

Spectrum Income	Sells

	Brazilian Real	599,102	Sep 2006	($25,722)
	Brazilian Real	1,061,000	Nov 2006	82
	Brazilian Real	882,000	Jan 2007	3,855
	Chinese Yuan Renminbi	652,081	Oct 2006	9,034
	Danish Krone	42,391	Nov 2006	157
	Euro	3,260,572	Nov 2006	31,481
	Japanese Yen	88,305	Nov 2006	763
	Mexican Peso	849,422	Sep 2006	$7,085
	Mexican Peso	554,995	Sep 2006	5,796
	Mexican Peso	741,361	Sep 2006	214
	Mexican Peso	416,531	Oct 2006	(4,083)
	Mexican Peso	669,633	Nov 2006	3,224
	Mexican Peso	2,640,080	Nov 2006	24,881
	Polish Zloty	860,423	Oct 2006	181
	Polish Zloty	2,787,033	Nov 2006	14,721
	Polish Zloty	827,579	Nov 2006	14,535
	Pound Sterling	2,536,992	Nov 2006	(8,008)
	South African Rand	250,086	Nov 2006	2,123
	Turkish Lira	449,138	Oct 2006	(47,226)
	Turkish Lira	835,528	Nov 2006	2,301

				$35,394

Strategic Income	Buys

	Australian Dollar	3,400,000	Sep 2006	($6,767)
	Canadian Dollar	19,500,753	Sep 2006	136,679
	Canadian Dollar	1,510,299	Sep 2006	15,930
	Canadian Dollar	1,086,682	Sep 2006	12,806
	Canadian Dollar	2,557,233	Sep 2006	12,788
	Euro	3,000,000	Sep 2006	1,177
	Euro	3,500,000	Sep 2006	175
	Euro	2,900,000	Sep 2006	(34,246)
	Euro	1,300,000	Sep 2006	(11,731)
	Euro	700,000	Sep 2006	(1,956)
	New Zealand Dollar	1,400,000	Sep 2006	19,603

				$144,458

	Sells

	Australian Dollar	9,592,925	Sep 2006	($433,552)
	Canadian Dollar	29,459,359	Sep 2006	(160,047)
	Canadian Dollar	300,000	Sep 2006	(3,019)
	Canadian Dollar	8,579,195	Sep 2006	(56,036)
	Canadian Dollar	600,000	Sep 2006	(226)
	Canadian Dollar	5,800,000	Sep 2006	(10,727)
	Canadian Dollar	1,400,000	Sep 2006	(1,022)
	Euro	29,145,963	Sep 2006	(457,520)
	Euro	1,799,014	Sep 2006	4,863
	New Zealand Dollar	9,340,530	Sep 2006	(851,921)
	Pound Sterling	4,359,650	Sep 2006	(17,312)
	Pound Sterling	2,992,968	Sep 2006	(147,027)

				($2,133,546)

441

John Hancock Funds II

Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

				Unrealized
		Principal Amount	Settlement	Appreciation
Fund	Currency	Covered by Contract	Date	(Depreciation)

Total Return	Buys

	Canadian Dollar	3,612,000	Sep 2006	$97,318
	Chinese Yuan Renminbi	4,959,738	Mar 2007	(7,711)
	Chinese Yuan Renminbi	3,088,200	Mar 2007	(5,448)
	Japanese Yen	1,660,686,000	Nov 2006	(317,956)
	Japanese Yen	1,660,687,000	Nov 2006	(280,092)
	New Taiwan Dollar	12,518,000	Feb 2007	(3,392)
	Pound Sterling	2,516,000	Sep 2006	109,957
	Singapore Dollar	629,000	Sep 2006	(512)
	South Korean Won	310,339,000	May 2007	(5,561)
	South Korean Won	542,457,000	May 2007	(10,399)
	South Korean Won	192,597,000	May 2007	(4,717)
	South Korean Won	502,659,000	May 2007	(10,493)

				($439,006)

	Sells

	Euro	92,507,555	Sep 2006	($77,019)
	Euro	46,239,768	Sep 2006	(99,295)
	Euro	88,030,454	Sep 2006	(891,490)
	Pound Sterling	3,462,363	Sep 2006	($9,587)
	Pound Sterling	755,564	Sep 2006	(5,411)

				($1,082,802)

Vista	Sells

	Canadian Dollar	311,742	Sep 2006	($735)
	Euro	677,813	Sep 2006	1,979
	Swiss Franc	348,175	Sep 2006	(761)

				$483

Forward Commitments All Funds may purchase or sell debt securities on a when issued or forward delivery basis, which means that the obligations will be delivered to the Funds at a future date, which may be a month or more after the date of commitment. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated.

The Fund may receive compensation for interest forgone in the purchase of forward delivery securities. With respect to purchase commitments, each Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic or other factors. The value of the securities underlying a forward commitment to purchase securities, and the subsequent fluctuations in their value, are taken into account when determining the Fund’s net asset value starting on the day the Fund agrees to purchase the securities. The market values of the securities purchased on a forward delivery basis are identified in the Portfolio of Investments.

Federal Income Taxes Each Fund qualifies as a “regulated investment company” by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

New Accounting Pronouncement In June 2006, Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (the “Interpretation”) was issued, and is effective for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. This Interpretation prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return, and requires certain expanded disclosures. Management is currently evaluating the application of the Interpretation to the Fund, and has not at this time quantified the impact, if any, resulting from the adoption of this Interpretation on the Fund’s financial statements.

In September 2006, FASB Standard No. 157, Fair Value Measurements (“FAS 157”) was issued, and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishing a framework for measuring fair value and expands disclosure about fair value measurements. Management is currently evaluating the application of FAS 157 to the Fund, and its impact, if any, resulting from the adoption of FAS 157 on the Fund’s financial statements.

Distribution of Income and Gains The Funds record distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. Distributions paid by the Funds with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in each Fund’s financial statements as a return of capital.

Capital Accounts The Funds report the undistributed net investment income and accumulated undistributed net realized gain (loss) accounts on a basis approximating amounts available for future tax distributions (or to offset future taxable realized gains when a capital loss carryforward is available). Accordingly, each Fund may periodically make reclassifications among certain capital accounts without affecting its net asset value.

442

John Hancock Funds II

Notes to Financial Statements (Unaudited)

3. INVESTMENT ADVISORY AND OTHER AGREEMENTS

Advisory Fees The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvisers to handle the investment and reinvestment of the assets of each Fund, subject to the supervision of the Trust’s Board of Trustees. As compensation for its services, the Adviser receives an advisory fee from the Trust. Advisory fees charged to each Fund are as follows:

Fund	Average Net Assets — All Asset Levels

Active Bond	0.600%
Emerging Growth	0.800
Global Bond	0.700
Real Estate Securities	0.700
Real Return Bond	0.700
Small Cap	0.850
Special Value¹	0.950
Total Return	0.700

1 Until June 1, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of : (a) 1.000% of the of the Fund’s average net assets and (b) 0.950% of the Fund’s average net assets in excess of $500 million.

		Between
	First	$500 million	Excess
	$500 million	and $1 billion	Over $1 billion
	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets

All Cap Core	0.800%	0.750%	0.750%
All Cap Growth¹	0.850	0.825	0.800
Blue Chip Growth	0.825	0.825	0.800
Emerging Small Company²	0.970	0.900	0.900
Equity-Income	0.825	0.825	0.800
Large Cap Value³	0.825	0.800	0.775
Mid Cap Core⁴	0.850	0.825	0.825
Quantitative Value	0.700	0.650	0.600
U.S. Global Leaders Growth	0.7125	0.675	0.675
Value & Restructuring	0.850	0.800	0.800

1 Until January 1, 2006 the Fund paid monthly advisory fees equivalent, on an annual basis to the sum of (a) 0.90% of the first $500 million of the Fund’s average net assets and (b) 0.85% of the Fund’s average net assets in excess of $500 million.

2 Until April 28, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 1.000% of the first $500 million of the Fund’s average net assets, (b) 0.970% of the next $500 million of the Fund’s average net assets and (c) 0.950% of the Fund’s average net assets in excess of $1 billion.

3 Until June 1, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.850% of the first $300 million of the Fund’s average net assets, (b) 0.825% of the next $200 million of the Fund’s average net assets and (c) 0.800% of the Fund’s average net assets in excess of $500 million.

4 Until June 1, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.950% of the first $10 million of the Fund’s average net assets, (b) 0.900% of the next $40 million of the Fund’s average net assets, (c) 0.875% of the next $150 million of the Fund’s average net assets, (d) 0.850% of the next $300 million of the Fund’s average net assets and (e) 0.825% of the Fund’s average net assets in excess of $500 million.

		Between	Between	Between
	First	$50 million	$200 million	$500 million	Excess
	$50 million	and $200 million	and $500 million	and $1 billion	Over $1 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets	Net Assets

Absolute Return	0.200%	0.200%	0.175%	0.150%	0.150%
International Small Cap	1.050	1.050	0.950	0.850	0.850
International Value	0.950	0.950	0.850	0.800	0.800
Mid Cap Stock	0.875	0.875	0.850	0.825	0.825
Mid Cap Value	0.900	0.900	0.850	0.825	0.825
Natural Resources	1.050	1.000	1.000	1.000	1.000
Quantitative All Cap	0.750	0.700	0.700	0.700	0.700
Quantitative Mid Cap	0.750	0.750	0.650	0.650	0.650
Small Cap Opportunities	1.000	1.000	1.000	0.950	0.950
Small Company Value	1.050	1.050	1.050	1.000	1.000

		Between	Between
	First	$50 million	$250 million	Excess
	$50 million	and $250 million	and $500 million	Over $500 million
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

All Cap Value	0.850%	0.850%	0.800%	0.750%
Fundamental Value	0.850	0.800	0.800	0.750

443

John Hancock Funds II

Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

		Between	Between
	First	$200 million	$400 million	Excess
	$200 million	and $400 million	and $1 billion	Over $1 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

Vista¹	0.900%	0.850%	0.825%	0.800%

1 Until June 1, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.900% of the first $250 million of the Fund’s average net assets, (b) 0.850% of the next $250 million of the Fund’s average net assets, (c) 0.825% of the next $500 million of the Fund’s average net assets and (d) 0.800% of the Fund’s average net assets in excess of $1 billion.

	First	Between $300 million	Between $500 million	Excess over
	$300 million	and $500 million	and $1 billion	$1 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

Capital Appreciation¹	0.850%	0.800%	0.700%	0.670%
1 Until April 28, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.850% of the first $300 million of the Fund’s average net assets and (b) 0.800% of the
Fund’s average net assets in excess of $300 million.

	First	Excess
	$350 million	Over $350 million
	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets

Core Equity	0.850%	0.750%
	First	Between $500 million	Between $1 billion	Excess over
	$500 million	and $1 billion	and $2.5 billion	$2.5 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

U.S. Multi Sector	0.780%	0.760%	0.750%	0.740%
	First	Between $100 million	Excess
	$100 million	and $1 billion	Over $1 billion
	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets

International Stock¹	0.920%	0.895%	0.880%
International Small Company	1.030	0.980	0.980

1 For the purposes of determining Aggregate Net Assets, the assets of the International Stock and the International Core Trust, a series of John Hancock Trust and the International Core Fund, a series of John Hancock Funds III are included. John Hancock Funds III is a retail mutual funds advised by JHIMS and distributed by an affiliate of JHIMS, John Hancock Funds, LLC.

	First	Between $750 million	Excess
	$750 million	and $1.5 billion	Over $1.5 billion
	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets

International Opportunities¹	0.900%	0.850%	0.800%

1 Until January 1, 2006 the Fund paid monthly advisory fees equivalent, on an annual basis to the sum of (a) 1.00% of the first $250 million of the Fund’s average net assets, (b) 0.95% of the next $250 million of the Fund’s average net assets and (c) 0.90% of the Fund’s average net assets in excess of $500 million.

	First	Excess
	$125 million	Over $125 million
	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets

Small Company	1.050%	1.000%
	First	Excess
Fund	$250 million	Over $250 million

Small Company Growth¹	1.050%	1.000%

1 When Aggregate Net Assets exceed $1 billion, the advisory fee for Small Company Growth is 1.00% on all assets.

	First	Between $250 million	Between $500 million	Excess over
	$250 million	and $500 million	and $1 billion	$1 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

Mid Cap Value Equity	0.875%	0.850%	0.825%	0.800%
Real Estate Equity	0.875	0.850	0.825	0.825
Spectrum Income	0.800	0.725	0.725	0.725

444

John Hancock Funds II

Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

	First	Between $250 million	Between $500 million	Excess over
	$250 million	and $500 million	and $750 million	$750 million
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

Global Real Estate	0.950%	0.950%	0.925%	0.900%
Large Cap¹	0.780	0.730	0.680	0.650

1 Until June 1, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.850% of the first $250 million of the Fund’s average net assets, (b) 0.800% of the next $250 million of the Fund’s average net assets and (c) 0.750% of the Fund’s average net assets in excess of $500 million.

	First	Between $300 million	Between $600 million	Between $900 million	Excess over
	$300 million	and $600 million	and $900 million	and $1.5 billion	$1.5 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets	Net Assets

Strategic Value	0.850%	0.825%	0.800%	0.775%	0.700%
	First	Excess
	$100 million	Over $100 million
	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets

International Equity Index	0.550%	0.530%
	First	Between $250 million	Excess over
	$250 million	and $500 million	$500 million
	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets

Mid Cap Index	0.490%	0.480%	0.460%
Small Cap Index	0.490	0.480	0.460
	First	Excess
	$500 million	Over $500 million
	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets

High Yield¹	0.700%	0.650%
Investment Quality Bond	0.600	0.550
Strategic Bond²	0.700	0.650
Strategic Income	0.725	0.650
U.S. Government Securities³	0.620	0.550

1 Until April 28, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.725% of the first $500 million of the Fund’s average net assets and (b) 0.650% of the Fund’s average net assets in excess of $500 million.

2 Until April 28, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.725% of the first $500 million of the Fund’s average net assets and (b) 0.650% of the Fund’s average net assets in excess of $500 million.

3 Until April 28, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.650% of the first $500 million of the Fund’s average net assets and (b) 0.550% of the Fund’s average net assets in excess of $500 million.

	First	Excess
	$200 million	Over $200 million
	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets

U.S. High Yield Bond	0.750%	0.720%
	First	Between $200 million
	$200 million	and $400 million	Excess Over $400 million
	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets

Core Bond¹	0.690%	0.640%	0.570%

1 Until June 1, 2006, the Fund paid monthly advisory fees equivalent, on an annual basis, to the sum of: (a) 0.690% of the first $200 million of the Fund’s average net assets, (b) 0.640% of the next $200 million of the Fund’s average net assets and (c) 0.600% of the Fund’s average net assets in excess of $400 million.

445

John Hancock Funds II

Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

		Between	Between
	First	$150 million	$500 million	Excess
	$150 million	and $500 million	and $2.5 billion	Over $2.5 billion
	of Aggregate	of Aggregate	of Aggregate	of Aggregate
Fund	Net Assets	Net Assets	Net Assets	Net Assets

High Income	0.725%	0.675%	0.650%	0.600%

For purposes of determining Aggregate Net Assets, the net assets of this series of the Trust and a similar series of John Hancock Trust are included.

John Hancock Trust is an open-end investment company advised by JHIMS and distributed by an affiliate of JHIMS, John Hancock Distributors, LLC.

Expense Reimbursement The Adviser has contractually agreed to waive advisory fees or reimburse each Fund if the total of all expenses (excluding taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses, extraordinary expenses not incurred in the ordinary course of the Funds’ business, advisory fees, Rule 12b-1 fees, transfer agent fees, blue sky fees, printing and postage and fees under any agreements or plans of the Funds dealing with services for shareholders and others with beneficial interests in shares of the Funds) exceed the following:

- 0.05% of average daily net assets of Absolute Return and International Equity Index;

- 0.06% of average daily net assets of Emerging Small Company; and

- 0.075% of average daily net assets of Mid Cap Index and Small Cap Index;

- 0.75% of average daily net assets of Global Bond, Global Real Estate, International Stock, International Opportunities, International Small Cap, International Small Company, and International Value; and

- 0.50% of average daily net assets in the case of all other Funds with the exception of Quantitative All Cap.

The Adviser reserves the right to terminate this limitation in the future.

In the case of Quantitative All Cap, the Adviser has contractually agreed to waive advisory fees or reimburse for certain other fund expenses so that total fund operating expenses do not exceed 1.30% for Class A, 2.00% for Class B, 2.00% for Class C and 0.85% for Class I of the average annual net assets attributable to the respective classes. This expense reimbursement shall continue in effect until July 31, 2007 and thereafter until termination by the Adviser on notice to the Trust.

In addition, the Adviser voluntarily agreed to waive a portion of its advisory fee for Blue Chip Growth, Emerging Small Company, Equity-Income, International Value, Mid Cap Index, Quantitative All Cap, Real Estate Equity, Small Cap Index, Small Company Value and Spectrum Income in the amount of $158,836, $82,214, $108,998, $136,471, $1,216, $23,320, $16,911, $10,729, $80,667 and $74,483, respectively.

Administration Fees The Funds have an agreement with the Adviser that requires the Funds to reimburse the Adviser for all expenses associated with providing the administrative, financial, accounting and recordkeeping services of the Funds, including the preparation of all tax returns, annual, semi-annual and periodic reports to shareholders and the preparation of all regulatory reports.

Distribution Plan The Trust has a Distribution Agreement with John Hancock Funds, LLC (the “Distributor”), a wholly owned subsidiary of the Adviser. The Funds have adopted a Distribution Plan with respect to Class A, Class B, Class C and Class 1, pursuant to Rule 12b-1 under the Investment Company Act of 1940, to reimburse the Distributor for the services it provides as distributor of shares of the Funds. Accordingly, the Funds make monthly payments to the Distributor at an annual rate not to exceed 0.30% of Class A average daily net asset value, 1.00% of Class B average daily net asset value, 1.00% of Class C average daily net asset value and 0.05% of Class 1 average daily net asset value. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the National Association of Securities Dealers. Under the Conduct Rules, curtailment of a portion of the Fund’s 12b-1 payments could oc cur under certain circumstances.

Sales Charges Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the period ended August 31, 2006, there were no up-front sales charges received by JH Funds with regard to sales of Class A shares.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Fund in connection with the sale of Class B and Class C shares. During the period ended August 31, 2006, there were no CDSCs received by the Distributor.

Transfer Agent Fees The Funds have a Transfer Agency Agreement with John Hancock Signature Services, Inc. (“Signature Services”), an indirect subsidiary of MFC. For Class A, Class B and Class C shares, the Funds pay a monthly transfer agent fee at an annual rate of 0.05% of each class’ average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value.

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of Class A, Class B and Class C share average daily net assets for all funds except International Stock, cap at 0.30% annually. This agreement is effective until December 31, 2006. Signature Services reserves the right to terminate this limitation in the future.

Trustees’ Fees The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. Total Trustees’ expenses are allocated to each Fund based on its average daily net asset value.

446

John Hancock Funds II

Notes to Financial Statements

4. GUARANTEES AND INDEMNIFICATIONS Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

5. LINE OF CREDIT All Funds have entered into an agreement which enables them to participate in a $100 million unsecured committed line of credit with State Street Corporation. Borrowings will be made solely to temporarily finance the repurchase of capital shares. Interest is charged to each participating Fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50% . In addition, a commitment fee of 0.07% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit, is charged to each participating Fund on a prorated basis based on average net assets. For the period ended August 31, 2006 there was no borrowings under the line of credit.

6. CAPITAL SHARES Share activities for the Funds for period ended August 31, 2006 were as follows:

Absolute Return Fund	Period ended 8-31-06^a
	Shares	Amount

Class A shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Class B shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Class C shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Class 1 shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Net increase (decrease)	500,000	$5,000,000
a Period from 6-26-06 (commencement of operations) to 8-31-06.

Active Bond Fund	Period ended 8-31-06^b
	Shares	Amount

Class 1 shares
Sold	4,410,359	$42,335,086
Distributions reinvested	101,841	954,551
Repurchased	(629,790)	(6,032,748)
Net increase (decrease)	3,882,410	$37,256,889

Class NAV shares
Sold	40,800,418	$391,259,642
Distributions reinvested	1,092,312	10,220,932
Repurchased	(296,193)	(2,824,688)
Net increase (decrease)	41,596,537	$398,655,886

Net increase (decrease)	45,478,947	$435,912,775
b Class 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.

All Cap Core Fund	Period ended 8-31-06^c
	Shares	Amount

Class NAV shares
Sold	28,631,304	$285,677,276
Repurchased	(39)	(386)

Net increase (decrease)	28,631,265	$285,676,890
c Period from 4-28-06 (commencement of operations) to 8-31-06.

All Cap Growth Fund	Period ended 8-31-06^d
	Shares	Amount

Class 1 shares
Sold	2,255,731	$35,128,332
Distributions reinvested	923	15,666
Repurchased	(294,829)	(4,975,207)
Net increase (decrease)	1,961,825	$30,168,791

Class NAV shares
Sold	7,460,531	$118,167,808
Distributions reinvested	2,919	49,558
Repurchased	(1)	(12)
Net increase (decrease)	7,463,449	$118,217,354

Net increase (decrease)	9,425,274	$148,386,145
d Period from 10-15-05 (commencement of operations) to 8-31-06.

447

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

All Cap Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	1,534,041	$21,741,293
Distributions reinvested	1,978	29,388
Repurchased	(206,788)	(3,153,743)
Net increase (decrease)	1,329,231	$18,616,938

Class NAV shares
Sold	12,329,873	$173,586,947
Distributions reinvested	18,130	268,692
Net increase (decrease)	12,348,003	$173,855,639

Net increase (decrease)	13,677,234	$192,472,577
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Blue Chip Growth Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	11,420,290	$192,142,629
Distributions reinvested	5,306	96,099
Repurchased	(1,056,336)	(18,624,249)
Net increase (decrease)	10,369,260	$173,614,479

Class NAV shares
Sold	64,643,103	$1,091,778,066
Distributions reinvested	44,161	798,874
Repurchased	(3,576,152)	(65,139,214)
Net increase (decrease)	61,111,112	$1,027,437,726

Net increase (decrease)	71,480,372	$1,201,052,205
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Capital Appreciation Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	7,646,975	$75,934,658
Repurchased	(478,192)	(4,595,575)
Net increase (decrease)	7,168,783	$71,339,083

Class NAV shares
Sold	42,013,807	$401,821,454
Repurchased	(475,720)	(4,570,774)
Net increase (decrease)	41,538,087	$397,250,680

Net increase (decrease)	48,706,870	$468,589,763
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Core Bond Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	79,232	$988,911
Distributions reinvested	1,398	16,947
Repurchased	(3,699)	(45,815)
Net increase (decrease)	76,931	$960,043

Class NAV shares
Sold	15,383,056	$192,087,432
Distributions reinvested	406,966	4,956,804
Repurchased	(6,839)	(84,833)
Net increase (decrease)	15,783,183	$196,959,403

Net increase (decrease)	15,860,114	$197,919,446
a Period from 10-15-05 (commencement of operations) to 8-31-06.

448

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Core Equity Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	916,332	$12,817,352
Repurchased	(66,319)	(967,554)
Net increase (decrease)	850,013	$11,849,798

Class NAV shares
Sold	41,574,157	$583,783,533
Repurchased	(640,480)	(9,611,239)
Net increase (decrease)	40,933,677	$574,172,294

Net increase (decrease)	41,783,690	$586,022,092
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Emerging Growth Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	14,616,000	$242,600,553
Repurchased	(8,047,719)	(133,391,250)
Net increase (decrease)	6,568,281	$109,209,303

Class NAV shares
Sold	2,848,551	$47,801,605
Repurchased	(58,751)	(1,081,054)
Net increase (decrease)	2,789,800	$46,720,551

Net increase (decrease)	9,358,081	$155,929,854
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Emerging Small Company Fund	Period ended 8-31-06^b
	Shares	Amount

Class 1 shares
Sold	2,017,391	$57,714,464
Repurchased	(232,021)	(7,072,654)
Net increase (decrease)	1,785,370	$50,641,810

Class NAV shares
Sold	3,401	$100,000
Net increase (decrease)	3,401	$100,000

Net increase (decrease)	1,788,771	$50,741,810
b Class 1 and Class NAV shares began operations on 10-15-05 and 6-26-06, respectively.

Equity-Income Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	10,841,153	$175,415,443
Distributions reinvested	35,892	612,671
Repurchased	(757,673)	(13,117,365)
Net increase (decrease)	10,119,372	$162,910,749

Class NAV shares
Sold	41,740,567	$679,203,718
Distributions reinvested	139,155	2,371,194
Repurchased	(12,320,846)	(221,623,437)
Net increase (decrease)	29,558,876	$459,951,475

Net increase (decrease)	39,678,248	$622,862,224
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Fundamental Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	4,406,006	$64,352,852
Distributions reinvested	7,132	109,544
Repurchased	(192,621)	(2,947,427)
Net increase (decrease)	4,220,517	$61,514,969

Class NAV shares
Sold	43,805,878	$643,905,194
Distributions reinvested	80,076	1,226,769
Repurchased	(8,097)	(119,942)
Net increase (decrease)	43,877,857	$645,012,021

Net increase (decrease)	48,098,374	$706,526,990
a Period from 10-15-05 (commencement of operations) to 8-31-06.

449

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Global Bond Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	3,319,111	$48,301,151
Distributions reinvested	15,790	227,540
Repurchased	(565,053)	(8,153,979)
Net increase (decrease)	2,769,848	$40,374,712

Class NAV shares
Sold	37,810,358	$545,663,651
Distributions reinvested	194,896	2,800,652
Repurchased	(555,964)	(8,062,548)
Net increase (decrease)	37,449,290	$540,401,755

Net increase (decrease)	40,219,138	$580,776,467
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Global Real Estate Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	35,315,465	$352,026,731
Repurchased	(828,195)	(8,290,766)

Net increase (decrease)	34,487,270	$343,735,965
b Period from 4-28-06 (commencement of operations) to 8-31-06.

High Income Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	28,959,651	$289,253,392
Distributions reinvested	323,060	3,127,218
Repurchased	(66)	(663)

Net increase (decrease)	29,282,645	$292,379,947
b Period from 4-28-06 (commencement of operations) to 8-31-06.

High Yield Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	4,684,483	$47,431,727
Distributions reinvested	241,386	2,373,236
Repurchased	(583,626)	(5,964,590)
Net increase (decrease)	4,342,243	$43,840,373

Class NAV shares
Sold	148,852,350	$1,504,335,643
Distributions reinvested	6,834,498	67,041,478
Repurchased	(42,180,007)	(440,523,474)
Net increase (decrease)	113,506,841	$1,130,853,647

Net increase (decrease)	117,849,084	$1,174,694,020
a Period from 10-15-05 (commencement of operations) to 8-31-06.

International Equity Index Fund	Period ended 8-31-06^c
	Shares	Amount

Class NAV shares
Sold	16,356,516	$274,978,009
Distributions reinvested	125,191	2,080,681
Repurchased	(254,897)	(4,623,820)

Net increase (decrease)	16,226,810	$272,434,870

450

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

International Opportunities Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	601,742	$9,273,103
Distributions reinvested	2,943	42,136
Repurchased	(50,208)	(778,720)
Net increase (decrease)	554,477	$8,536,519

Class NAV shares
Sold	34,334,780	$486,232,885
Distributions reinvested	1,294,925	18,582,164
Repurchased	(1,453,315)	(22,354,475)
Net increase (decrease)	34,176,390	$482,460,574

Net increase (decrease)	34,730,867	$490,997,093
a Period from 10-15-05 (commencement of operations) to 8-31-06.

International Small Cap Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	2,219,040	$42,103,836
Distributions reinvested	3,177	59,757
Repurchased	(458,599)	(9,035,256)
Net increase (decrease)	1,763,618	$33,128,337

Class NAV shares
Sold	27,389,877	$502,849,801
Distributions reinvested	54,397	1,022,670
Repurchased	(10,310,152)	(226,267,466)
Net increase (decrease)	17,134,122	$277,605,005

Net increase (decrease)	18,897,740	$310,733,342
a Period from 10-15-05 (commencement of operations) to 8-31-06.

International Small Company Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	23,673,770	$234,475,079

Net increase (decrease)	23,673,770	$234,475,079
b Period from 4-28-06 (commencement of operations) to 8-31-06.

International Stock Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	6,153,666	$81,216,450
Distributions reinvested	234,224	3,150,274
Repurchased	(647,183)	(8,791,237)
Net increase (decrease)	5,740,707	$75,575,487

Class NAV shares^c
Sold	76,895,091	$921,835,178
Distributions reinvested	3,946,080	52,200,374
In kind redemption^d	(72,837,332)	(999,328,193)
Repurchased	(8,003,839)	(110,232,993)
Net increase (decrease)	—	($135,525,634)

Net increase (decrease)	5,740,707	($59,950,147)

a Period from 10-15-05 (commencement of operations) to 8-31-06.

c Class NAV shares of International Stock were terminated on 8-29-06.

d Refer to merger of International Stock Fund footnote 1.

451

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

International Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	7,948,556	$122,657,545
Distributions reinvested	22,472	353,039
Repurchased	(464,178)	(7,536,803)
Net increase (decrease)	7,506,850	$115,473,781

Class NAV shares
Sold	57,595,544	$868,428,490
Distributions reinvested	183,500	2,875,449
Repurchased	(11,028,757)	(195,470,875)
Net increase (decrease)	46,750,287	$675,833,064

Net increase (decrease)	54,257,137	$791,306,845
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Investment Quality Bond Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	3,270,289	$38,683,682
Distributions reinvested	93,593	1,074,307
Repurchased	(400,700)	(4,711,127)
Net increase (decrease)	2,963,182	$35,046,862

Class NAV shares
Sold	7,735,080	$91,307,476
Distributions reinvested	245,235	2,811,572
Repurchased	(35,590)	(421,740)
Net increase (decrease)	7,944,725	$93,697,308

Net increase (decrease)	10,907,907	$128,744,170
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Large Cap Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	302,458	$4,282,728
Distributions reinvested	100	1,427
Repurchased	(162,086)	(2,317,240)
Net increase (decrease)	140,472	$1,966,915

Class NAV shares
Sold	13,058,478	$177,726,453
Distributions reinvested	14,836	212,011
Repurchased	(53)	(777)
Net increase (decrease)	13,073,261	$177,937,687

Net increase (decrease)	13,213,733	$179,904,602
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Large Cap Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	4,869,615	$109,652,824
Distributions reinvested	1,106	24,237
Repurchased	(285,910)	(6,490,215)
Net increase (decrease)	4,584,811	$103,186,846

Class NAV shares
Sold	10,165,283	$218,373,407
Distributions reinvested	13,349	293,006
Repurchased	(55)	(1,305)
Net increase (decrease)	10,178,577	$218,665,108

Net increase (decrease)	14,763,388	$321,851,954
a Period from 10-15-05 (commencement of operations) to 8-31-06.

452

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Mid Cap Core Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	718,564	$11,713,771
Distributions reinvested	480	8,276
Repurchased	(67,573)	(1,161,767)
Net increase (decrease)	651,471	$10,560,280

Class NAV shares
Sold	22,063,224	$357,331,711
Distributions reinvested	21,720	374,238
Repurchased	(5,028,099)	(90,053,219)
Net increase (decrease)	17,056,845	$267,652,730

Net increase (decrease)	17,708,316	$278,213,010
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Mid Cap Index Fund	Period ended 8-31-06^a
	Shares	Amount

Class NAV shares
Sold	9,364,334	$172,967,966
Distributions reinvested	5,412	98,937
Repurchased	(9)	(167)

Net increase (decrease)	9,369,737	$173,066,736
a Period from 10-29-05 (commencement of operations) to 8-31-06.

Mid Cap Stock Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	7,177,859	$101,765,405
Distributions reinvested	7,197	110,835
Repurchased	(433,964)	(6,723,460)
Net increase (decrease)	6,751,092	$95,152,780

Class NAV shares
Sold	12,263,280	$175,063,032
Distributions reinvested	12,654	195,005
Repurchased	(13,321)	(200,978)
Net increase (decrease)	12,262,613	$175,057,059

Net increase (decrease)	19,013,705	$270,209,839
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Mid Cap Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	5,216,018	$93,070,872
Distributions reinvested	8,173	156,021
Repurchased	(270,546)	(5,091,481)
Net increase (decrease)	4,953,645	$88,135,412

Class NAV shares
Sold	7,331,183	$131,352,458
Distributions reinvested	12,119	230,981
Repurchased	(4,708,091)	(91,289,836)
Net increase (decrease)	2,635,211	$40,293,603

Net increase (decrease)	7,588,856	$128,429,015
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Mid Cap Value Equity Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	10,163,245	$101,230,202

Net increase (decrease)	10,163,245	$101,230,202
b Period from 4-28-06 (commencement of operations) to 8-31-06.

453

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Natural Resources Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	2,667,622	$84,051,737
Distributions reinvested	1,596	51,094
Repurchased	(390,223)	(12,861,630)
Net increase (decrease)	2,278,995	$71,241,201

Class NAV shares
Sold	26,990,316	$791,451,774
Distributions reinvested	21,664	691,085
Repurchased	(7,583,489)	(243,417,369)
Net increase (decrease)	19,428,491	$548,725,490

Net increase (decrease)	21,707,486	$619,966,691
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Quantitative All Cap Fund	Period ended 8-31-06^c
	Shares	Amount

Class A shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Class B shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Class C shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Class I shares
Sold	125,000	$1,250,000
Net increase (decrease)	125,000	$1,250,000

Net increase (decrease)	500,000	$5,000,000
c Period from 7-28-06 (commencement of operations) to 8-31-06.

Quantitative Mid Cap Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	10,131,602	$139,050,728
Distributions reinvested	4,513	67,201
Repurchased	(821,113)	(12,018,583)
Net increase (decrease)	9,315,002	$127,099,346

Class NAV shares
Sold	3,477,624	$48,688,174
Distributions reinvested	1,504	22,396
Net increase (decrease)	3,479,128	$48,710,570

Net increase (decrease)	12,794,130	$175,809,916
a Class 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.

Quantitative Value Fund	Period ended 8-31-06^b
	Shares	Amount

Class 1 shares
Sold	12,177,329	$172,995,129
Distributions reinvested	20,598	316,796
Repurchased	(6,412,260)	(91,864,606)
Net increase (decrease)	5,785,667	$81,447,319

Class NAV shares
Sold	21,861,897	$322,294,660
Distributions reinvested	59,655	917,492
Repurchased	(46,554)	(752,703)
Net increase (decrease)	21,874,998	$322,459,449

Net increase (decrease)	27,660,665	$403,906,768
b Period from 10-15-05 (commencement of operations) to 8-31-06.

Real Estate Equity Fund	Period ended 8-31-06^c
	Shares	Amount

Class NAV shares
Sold	26,299,462	$262,958,482
Repurchased	(1,276,416)	(13,500,524)

Net increase (decrease)	25,023,046	$249,457,958
c Period from 4-28-06 (commencement of operations) to 8-31-06.

454

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Real Estate Securities Fund	Period ended 8-31-06^b
	Shares	Amount

Class 1 shares
Sold	6,284,572	$148,199,995
Distributions reinvested	39,680	993,592
Repurchased	(627,908)	(16,050,282)
Net increase (decrease)	5,696,344	$133,143,305

Class NAV shares^d
Sold	22,695,411	$537,633,578
Distributions reinvested	153,457	3,836,410
Repurchased	(22,848,868)	(620,415,037)
Net increase (decrease)	—	($78,945,049)

Net increase (decrease)	5,696,344	$54,198,256
b Period from 10-15-05 (commencement of operations) to 8-31-06.
d Class NAV shares of Real Estate Securities Fund were terminated on 5-1-06.

Real Return Bond Fund	Period ended 8-31-06^b
	Shares	Amount

Class 1 shares
Sold	1,454,328	$19,581,447
Distributions reinvested	36,073	467,161
Repurchased	(196,896)	(2,628,853)
Net increase (decrease)	1,293,505	$17,419,755

Class NAV shares
Sold	50,304,888	$671,385,157
Distributions reinvested	1,498,244	19,250,689
Repurchased	(414,756)	(5,458,616)
Net increase (decrease)	51,388,376	$685,177,230

Net increase (decrease)	52,681,881	$702,596,985
b Period from 10-15-05 (commencement of operations) to 8-31-06.

Small Cap Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	71,459	$1,051,472
Repurchased	(14,710)	(218,414)
Net increase (decrease)	56,749	$833,058

Class NAV shares
Sold	17,159,599	$234,797,473
Repurchased	(84,253)	(1,306,123)
Net increase (decrease)	17,075,346	$233,491,350

Net increase (decrease)	17,132,095	$234,324,408
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Small Cap Index Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	7,837,004	$119,876,928
Distributions reinvested	5,687	86,672
Repurchased	(2)	(40)

Net increase (decrease)	7,842,689	$119,963,560
b Period from 10-29-05 (commencement of operations) to 8-31-06.

Small Cap Opportunities Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	1,423,438	$31,374,556
Distributions reinvested	2,275	52,542
Repurchased	(115,637)	(2,690,949)
Net increase (decrease)	1,310,076	$28,736,149

Class NAV shares
Sold	11,275,084	$243,592,568
Distributions reinvested	21,585	496,243
Repurchased	(1,933,247)	(49,121,188)
Net increase (decrease)	9,363,422	$194,967,623

Net increase (decrease)	10,673,498	$223,703,772
a Period from 10-15-05 (commencement of operations) to 8-31-06.

455

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Small Company Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	444,470	$6,952,364
Repurchased	(50,652)	(835,677)
Net increase (decrease)	393,818	$6,116,687

Class NAV shares
Sold	5,775,746	$88,554,245
Repurchased	(116,590)	(1,993,906)
Net increase (decrease)	5,659,156	$86,560,339

Net increase (decrease)	6,052,974	$92,677,026
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Small Company Growth Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	6,665,333	$67,787,539
Repurchased	(4)	(51)

Net increase (decrease)	6,665,329	$67,787,488
b Period from 10-29-05 (commencement of operations) to 8-31-06.

Small Company Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	6,651,337	$142,249,964
Distributions reinvested	11,964	272,671
Repurchased	(381,270)	(8,873,772)
Net increase (decrease)	6,282,031	$133,648,863

Class NAV shares
Sold	10,194,775	$220,030,278
Distributions reinvested	17,657	401,689
Repurchased	(86,262)	(2,158,577)
Net increase (decrease)	10,126,170	$218,273,390

Net increase (decrease)	16,408,201	$351,922,253
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Special Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	208,064	$4,049,944
Distributions reinvested	60	1,203
Repurchased	(19,736)	(404,619)
Net increase (decrease)	188,388	$3,646,528

Class NAV shares
Sold	6,047,081	$115,644,477
Distributions reinvested	3,993	80,458
Repurchased	(17,449)	(373,044)
Net increase (decrease)	6,033,625	$115,351,891

Net increase (decrease)	6,222,013	$118,998,419
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Spectrum Income Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	72,620,367	$729,434,258
Distributions reinvested	1,821,119	18,140,475
Repurchased	(70,634)	(713,593)

Net increase (decrease)	74,370,852	$746,861,140
b Period from 10-29-05 (commencement of operations) to 8-31-06.

456

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

Strategic Bond Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	3,816,438	$45,216,126
Distributions reinvested	154,844	1,757,818
Repurchased	(428,849)	(5,062,957)
Net increase (decrease)	3,542,433	$41,910,987

Class NAV shares
Sold	41,372,661	$489,625,288
Distributions reinvested	1,154,531	13,154,541
Repurchased	(19,596,041)	(232,996,134)
Net increase (decrease)	22,931,151	$269,783,695

Net increase (decrease)	26,473,584	$311,694,682
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Strategic Income Fund	Period ended 8-31-06^c
	Shares	Amount

Class NAV shares
Sold	27,748,210	$277,448,128
Distributions reinvested	204,788	2,008,968
Repurchased	(60)	(599)

Net increase (decrease)	27,952,938	$279,456,497
c Period from 4-28-06 (commencement of operations) to 8-31-06.

Strategic Value Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	1,404,164	$14,582,944
Distributions reinvested	1,752	18,908
Repurchased	(146,786)	(1,583,780)
Net increase (decrease)	1,259,130	$13,018,072

Class NAV shares
Sold	12,695,614	$131,570,173
Distributions reinvested	16,987	182,609
Repurchased	(1,481)	(16,860)
Net increase (decrease)	12,711,120	$131,735,922

Net increase (decrease)	13,970,250	$144,753,994
a Period from 10-15-05 (commencement of operations) to 8-31-06.

Total Return Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	9,048,783	$123,937,034
Distributions reinvested	207,106	2,773,005
Repurchased	(708,309)	(9,688,915)
Net increase (decrease)	8,547,580	$117,021,124

Class NAV shares
Sold	74,491,595	$1,015,920,334
Distributions reinvested	1,802,766	24,067,715
Repurchased	(568,832)	(7,736,934)
Net increase (decrease)	75,725,529	$1,032,251,115

Net increase (decrease)	84,273,109	$1,149,272,239
a Period from 10-15-05 (commencement of operations) to 8-31-06.

U.S. Global Leaders Growth Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	2,202,160	$28,041,942
Distributions reinvested	798	10,881
Repurchased	(245,208)	(3,204,861)
Net increase (decrease)	1,957,750	$24,847,962

Class NAV shares
Sold	35,653,852	$470,772,227
Distributions reinvested	14,555	198,524
Repurchased	(46)	(606)
Net increase (decrease)	35,668,361	$470,970,145

Net increase (decrease)	37,626,111	$495,818,107
a Period from 10-15-05 (commencement of operations) to 8-31-06.

457

John Hancock Funds II

Notes to Financial Statements

CAPITAL SHARES, CONTINUED

U.S. Government Securities Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	3,851,037	$52,131,775
Distributions reinvested	81,104	1,075,609
Repurchased	(775,755)	(10,473,685)
Net increase (decrease)	3,156,386	$42,733,699

Class NAV shares
Sold	11,671,805	$157,472,769
Distributions reinvested	276,030	3,648,865
Repurchased	(102,426)	(1,383,028)
Net increase (decrease)	11,845,409	$159,738,606

Net increase (decrease)	15,001,795	$202,472,305
a Period from 10-15-05 (commencement of operations) to 8-31-06.

U.S. High Yield Bond Fund	Period ended 8-31-06^a
	Shares	Amount

Class 1 shares
Sold	168,182	$2,186,988
Distributions reinvested	3,037	38,635
Repurchased	(32,243)	(416,648)
Net increase (decrease)	138,976	$1,808,975

Class NAV shares
Sold	21,370,555	$276,725,027
Distributions reinvested	710,275	9,044,306
Repurchased	(50)	(663)
Net increase (decrease)	22,080,780	$285,768,670

Net increase (decrease)	22,219,756	$287,577,645
a Period from 10-15-05 (commencement of operations) to 8-31-06.

U.S. Multi Sector Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	117,752,970	$1,188,168,264
Distributions reinvested	134,960	1,421,127
Repurchased	(75,255)	(771,951)

Net increase (decrease)	117,812,675	$1,188,817,440
b Period from 10-29-05 (commencement of operations) to 8-31-06.

Value & Restructuring Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	27,215,074	$289,386,759
Distributions reinvested	37,778	406,118
Repurchased	(499,385)	(5,569,033)

Net increase (decrease)	26,753,467	$284,223,844
b Period from 10-29-05 (commencement of operations) to 8-31-06.

Vista Fund	Period ended 8-31-06^b
	Shares	Amount

Class NAV shares
Sold	11,612,583	$118,006,782
Repurchased	(157,272)	(1,869,987)

Net increase (decrease)	11,455,311	$116,136,795
b Period from 10-29-05 (commencement of operations) to 8-31-06.

458

John Hancock Funds II

Notes to Financial Statements

8. INVESTMENT TRANSACTIONS The following summarizes the securities transactions (except for short-term investments and any transactions with affiliates in October 2005) for the Funds for the period ended August 31, 2006:

		Purchases	Sales and Maturities
Fund	U.S. Government	Other Issuers	U.S. Government	Other Issuers
Absolute Return	—	$4,647,829	—	—
Active Bond	$1,729,781,252	258,695,888	$1,497,000,577	$59,807,271
All Cap Core	—	454,534,934	—	202,718,533
All Cap Growth	—	283,790,820	—	144,058,732
All Cap Value	—	271,866,093	—	90,362,010
Blue Chip Growth	—	1,509,303,489	—	316,921,611
Capital Appreciation	—	655,709,494	—	194,738,911
Core Bond	820,085,919	188,596,418	720,128,994	103,765,159
Core Equity	—	637,814,132	—	63,409,603
Emerging Growth	2,970,144	478,032,222	2,995,623	326,024,049
Emerging Small Company	—	160,580,449	—	111,748,136
Equity-Income	—	884,217,458	—	285,559,298
Fundamental Value	—	722,582,888	—	47,432,730
Global Bond	217,414,591	1,301,637,227	291,241,240	795,832,949
Global Real Estate	—	628,507,046	—	286,968,800
High Income	—	482,050,819	6,691	200,156,946
High Yield	—	2,135,505,954	—	1,017,171,224
International Equity Index	—	286,573,589	—	23,913,847
International Opportunities	—	887,779,171	—	419,065,648
International Small Cap	—	652,649,473	—	374,133,375
International Small Company	—	350,086,823	—	118,186,977
International Stock	3,532,201	1,642,107,593	3,575,000	1,621,480,615^x
International Value	—	1,302,068,112	—	524,155,724
Investment Quality Bond	75,318,390	84,711,506	29,224,347	7,351,078
Large Cap	—	217,030,123	—	39,696,784
Large Cap Value	—	427,145,997	—	104,905,842
Mid Cap Core	—	529,764,242	—	307,058,850
Mid Cap Index	—	171,049,621	—	9,339,365
Mid Cap Stock	—	523,329,418	—	263,951,769
Mid Cap Value Equity	—	117,100,407	—	19,319,099
Mid Cap Value	—	247,887,074	—	124,695,657
Natural Resources	—	1,077,650,839	—	488,035,419
Quantitative All Cap	—	6,039,576	—	1,064,566
Quantitative Mid Cap	—	383,976,753	—	212,842,732
Quantitative Value	—	871,707,946	—	468,012,000
Real Estate Equity	—	381,114,648	—	131,211,427
Real Estate Securities	—	918,763,439	—	860,737,608
Real Return Bond	2,230,596,995	255,579,978	1,497,282,522	46,863,911
Small Cap	—	338,970,956	—	109,456,875
Small Cap Index	—	146,313,850	—	30,831,039
Small Cap Opportunities	—	349,771,943	—	139,084,382
Small Company	—	184,997,867	—	92,620,256
Small Company Growth	—	96,245,155	—	30,509,752
Small Company Value	—	383,984,642	—	39,821,079
Special Value	—	128,155,203	—	26,434,718
Spectrum Income	875,645,751	613,710,702	640,871,573	104,680,572
Strategic Bond	711,619,464	476,261,417	548,782,954	212,970,435
Strategic Income	81,477,422	302,654,648	43,503,879	88,412,949
Strategic Value	—	196,147,126	—	54,155,314
Total Return	3,561,880,103	618,405,617	3,176,253,093	67,764,249
U.S. Global Leaders Growth	—	562,491,070	—	69,397,765
U.S. Government Securities	393,449,755	99,860,287	210,338,582	1,899,777
U.S. High Yield Bond	—	484,965,339	—	215,451,136
U.S. Multi Sector	—	2,339,280,006	—	1,202,753,894
Value & Restructuring	—	316,135,888	—	34,670,831
Vista	—	326,857,111	—	217,162,641

^xIncludes redemption-in-kind activity. Refer to Merger of International Stock footnote 1.

459

John Hancock Funds II

Notes to Financial Statements

INVESTMENT TRANSACTIONS, CONTINUED

The cost of investments owned on August 31, 2006, including short-term investments, for federal income tax purposes, was as follows:

				Net Unrealized
	Aggregate	Unrealized	Unrealized	Appreciation/
Fund	Cost	Appreciation	(Depreciation)	(Depreciation)

Absolute Return Portfolio	$5,017,463	$162,999	($2,465)	$160,534
Active Bond Fund	592,597,327	2,726,441	(2,353,385)	373,056
All Cap Core Fund	291,452,968	10,629,691	(5,971,857)	4,657,834
All Cap Growth Fund	151,769,476	12,849,634	(3,347,458)	9,502,176
All Cap Value Fund	217,216,526	18,724,163	(1,998,871)	16,725,292
Blue Chip Growth Fund	1,247,331,996	113,057,905	(42,090,367)	70,967,538
Capital Appreciation Fund	470,985,984	26,299,283	(17,641,448)	8,657,835
Core Bond Fund	237,554,879	1,351,849	(786,990)	564,859
Core Equity Fund	592,501,706	48,251,655	(41,581,272)	6,670,383
Emerging Growth Fund	225,518,309	5,755,905	(21,157,761)	(15,401,856)
Emerging Small Company Fund	56,650,049	1,591,452	(5,566,376)	(3,974,924)
Equity-Income Fund	701,399,023	67,526,848	(11,725,620)	55,801,228
Fundamental Value Fund	738,398,726	60,897,872	(15,147,137)	45,750,735
Global Bond Fund	651,984,384	5,413,974	(3,428,053)	1,985,921
Global Real Estate Fund	385,654,943	15,995,432	(5,517,016)	10,478,416
High Income Fund	352,868,511	4,435,137	(10,503,914)	(6,068,777)
High Yield Fund	1,446,599,922	16,808,484	(27,155,754)	(10,347,270)
International Equity Index Fund	335,370,969	33,127,550	(4,797,895)	28,329,655
International Opportunities Fund	600,366,904	69,734,370	(2,191,074)	67,543,296
International Small Cap Fund	407,541,127	52,285,013	(24,446,036)	27,838,977
International Small Company Fund	266,167,785	8,029,152	(14,790,406)	(6,761,254)
International Stock Fund	63,590,525	13,830,262	(380,209)	13,450,053
International Value Fund	952,362,733	121,092,968	(15,665,522)	105,427,446
Investment Quality Bond Fund	161,897,617	386,834	(1,697,616)	(1,310,782)
Large Cap Fund	190,291,777	14,496,258	(4,861,837)	9,634,421
Large Cap Value Fund	335,657,743	21,347,014	(3,445,789)	17,901,225
Mid Cap Core Fund	307,523,543	19,165,010	(5,887,203)	13,277,807
Mid Cap Index Fund	204,876,370	7,804,406	(9,905,637)	(2,101,231)
Mid Cap Stock Fund	359,056,883	26,819,082	(10,401,607)	16,417,475
Mid Cap Value Equity Fund	119,006,979	3,027,824	(5,492,842)	(2,465,018)
Mid Cap Value Fund	155,138,096	12,901,711	(4,062,547)	8,839,164
Natural Resources Fund	726,632,531	120,645,282	(6,606,320)	114,038,962
Quantitative Mid Cap Fund	215,044,320	14,094,108	(4,124,721)	9,969,387
Quantitative All Cap Fund	4,981,271	151,824	(110,092)	41,732
Quantitative Value Fund	452,694,576	35,078,763	(5,981,017)	29,097,746
Real Estate Equity Fund	287,726,884	22,622,487	(591,762)	22,030,725
Real Estate Securities Fund	140,088,853	32,842,510	(756)	32,841,754
Real Return Bond Fund	925,995,473	3,867,722	(10,557,966)	(6,690,244)
Small Cap Fund	288,006,892	24,392,040	(16,360,296)	8,031,744
Small Cap Index Fund	156,144,205	8,310,381	(7,294,093)	1,016,288
Small Cap Opportunities Fund	296,601,097	25,294,255	(10,111,961)	15,182,294
Small Company Fund	115,896,171	6,133,749	(4,811,935)	1,321,814
Small Company Growth Fund	68,844,445	8,009,768	(3,128,868)	4,880,900
Small Company Value Fund	451,261,058	48,188,768	(16,031,712)	32,157,056
Special Value Fund	151,796,321	11,194,448	(3,796,190)	7,398,258
Spectrum Income Fund	836,228,546	17,676,401	(7,182,330)	10,494,071
Strategic Bond Fund	449,274,693	6,177,027	(2,596,729)	3,580,298
Strategic Income Fund	350,512,877	2,214,219	(1,851,038)	363,181
Strategic Value Fund	162,951,572	11,700,337	(7,426,027)	4,274,310
Total Return Fund	1,496,933,252	7,874,718	(2,276,436)	5,598,282
U.S. Global Leaders Growth Fund	495,549,352	12,650,288	(27,272,804)	(14,622,516)
U.S. Government Securities Fund	354,204,855	1,055,909	(447,618)	608,291
U.S. High Yield Bond Fund	323,960,705	1,953,126	(3,056,579)	(1,103,453)
U.S. Multi Sector Fund	1,256,427,871	76,516,171	(52,241,252)	24,274,919
Value & Restructuring Fund	331,116,707	22,412,186	(13,202,742)	9,209,444
Vista Fund	127,673,023	11,702,469	(950,382)	10,752,087

460

John Hancock Funds II

Notes to Financial Statements

9. FEDERAL INCOME TAX INFORMATION Federal income tax regulations may differ from generally accepted accounting principles and income and capital gain distributions determined in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Accordingly, the composition of net assets for tax purposes differs from amounts reflected in the accompanying financial statements. These differences are primarily due to differing treatment for futures and options transactions, foreign currency transactions, paydowns, market discount on debt securities, losses deferred with respect to wash sales, investments in passive foreign investment companies, equalization debits, and excise tax regulations.

The tax basis components of distributable earnings at August 31, 2006 were as follows:

	Undistributed	Undistributed Long	Capital Loss	Post-October
Fund	Ordinary Income	Term Capital Gains	Carryforward	Deferral

Absolute Return	$50,675	—	—	—
Active Bond	3,596,353	—	—	$3,153,615
All Cap Core	1,289,516	—	—	7,600,798
All Cap Growth	92,702	—	$188,525	2,814,240
All Cap Value	6,966,240	—	—	—
Blue Chip Growth	4,776,090	—	271,560	3,657,188
Capital Appreciation	467,182	—	21,055	17,446,886
Core Bond	1,678,000	—	—	1,763,916
Core Equity	3,447,577	—	—	—
Emerging Growth	31,143,754	—	—	—
Emerging Small Company	5,058,738	$164	—	—
Equity-Income	40,111,905	16,461	—	—
Fundamental Value	9,152,352	—	—	—
Global Bond	12,115,806	—	—	2,283,829
Global Real Estate	10,231,492	—	—	8,654,114
High Income	3,305,682	—	—	968,818
High Yield	23,712,400	—	—	—
International Equity Index	6,381,891	—	—	—
International Opportunities	2,598,649	—	—	—
International Small Cap	57,653,593	—	—	—
International Small Company	873,524	—	—	7,554,175
International Stock	2,744,696	—	—	—
International Value	73,333,065	—	—	—
Investment Quality Bond	1,200,498	2,499	—	382,383
Large Cap	4,155,184	108,946	—	—
Large Cap Value	1,242,158	—	43,455	1,435,442
Mid Cap Core	14,188,063	—	—	—
Mid Cap Index	1,438,205	1,920	—	250,122
Mid Cap Stock	14,234,633	19,598	—	—
Mid Cap Value Equity	230,465	16,379	—	888,294
Mid Cap Value	5,926,108	1,032	—	—
Natural Resources	36,383,734	2,564,857	—	—
Quantitative Mid Cap	209,090	3,009	—	2,787,571
Quantitative All Cap	15,777	—	—	—
Quantitative Value	25,095,422	29,779	—	—
Real Estate Equity	2,859,711	546,072	—	—
Real Estate Securities	80,631,044	2,929,872	—	—
Real Return Bond	3,268,662	1,566,656	—	—
Small Cap	—	—	74,789	1,216,063
Small Cap Index	3,940,833	176,258	—	—
Small Cap Opportunities	8,141,007	119,756	—	—
Small Company	—	—	—	365,945
Small Company Growth	1,232,409	—	—	—
Small Company Value	3,841,928	15,127	—	—
Special Value	1,228,849	36,902	—	—
Spectrum Income	6,345,492	59,929	—	—
Strategic Bond	3,123,030	141	—	5,510,107
Strategic Income	1,779,783	—	—	507,126
Strategic Value	3,360,833	—	—	—
Total Return	8,545,753	—	470,118	2,293,342
U.S. Global Leaders Growth	1,593,153	—	—	5,771,575
U.S. Government Securities	1,806,527	—	—	1,314,336
U.S. High Yield Bond	3,837,060	—	—	266,583
U.S. Multi Sector	13,002,758	887,518	—	—
Value & Restructuring	2,978,595	87,519	—	—
Vista	—	—	—	3,974,440

461

John Hancock Funds II

Notes to Financial Statements

FEDERAL INCOME TAX INFORMATION, CONTINUED

The tax character of distributions paid during the period ended August 31, 2006 was as follows:

		2006 Distributions

	Ordinary	Long Term
Fund	Income	Capital Gains

Active Bond	$11,175,483	—
All Cap Growth	65,224	—
All Cap Value	298,080	—
Blue Chip Growth	894,973	—
Core Bond	4,973,751	—
Equity-Income	2,983,865	—
Fundamental Value	1,336,313	—
Global Bond	3,028,192	—
High Income	3,127,218	—
High Yield	69,414,714	—
International Equity Index	2,080,681	—
International Opportunities	18,624,300	—
International Small Cap	1,082,427	—
International Stock	55,245,573	$105,075
International Value	3,228,488	—
Investment Quality Bond	3,885,879	—
Large Cap	213,439	—
Large Cap Value	317,242	—
Mid Cap Core	382,514	—
Mid Cap Index	98,937	—
Mid Cap Stock	305,840	—
Mid Cap Value	387,001	—
Natural Resources	742,179	—
Quantitative Mid Cap	89,597	—
Quantitative Value	1,234,288	—
Real Estate Securities	4,074,530	755,472
Real Return Bond	19,717,849	—
Small Cap Index	86,672	—
Small Cap Opportunities	548,785	—
Small Company Value	674,360	—
Special Value	81,660	—
Spectrum Income	18,140,475	—
Strategic Bond	14,870,223	42,136
Strategic Income	2,008,968	—
Strategic Value	201,517	—
Total Return	26,840,720	—
U.S. Global Leaders Growth	209,406	—
U.S. Government Securities	4,688,432	36,042
U.S. High Yield Bond	9,082,941	—
U.S. Multi Sector	1,421,127	—
Value & Restructuring	406,118	—

At August 31, 2006 capital loss carryforwards available to offset future realized gains were approximately:

		Capital Loss Carryforward
Fund		Expiring at August 31, 2014

All Cap Growth		$188,525
Blue Chip Growth		271,560
Capital Appreciation		21,055
Large Cap Value		43,455
Small Cap		74,789
Total Return		470,118

462

John Hancock Funds II

Notes to Financial Statements

10. INVESTMENT IN AFFILIATED UNDERLYING FUNDS Absolute Return invests primarily in the underlying funds that are managed by affiliates of the Adviser. The Fund does not invest in the underlying funds for the purpose of exercising management or control.

A summary of the Fund’s transactions in the securities of affiliated issuers in which the Fund’s holdings represent 5% or more of the outstanding voting securities of the issuer, during the period ended August 31, 2006 is set forth below.

Affiliate — Class NAV	Shares Purchased	Ending Share Amount	Ending Value

Capital Appreciation Fund	21,668	21,668	$204,767
Core Bond Fund	12,400	12,400	155,123
Emerging Small Company Fund	3,401	3,401	98,537
Equity-Income Fund	5,807	5,807	105,168
Fundamental Value Fund	6,588	6,588	104,282
Global Bond Fund	6,974	6,974	103,138
High Income Fund	41,253	41,253	407,164
High Yield Fund	10,288	10,288	103,699
International Opportunities Fund	6,689	6,689	108,094
International Small Company	16,873	16,873	157,424
International Value Fund	6,020	6,020	107,646
Investment Quality Bond Fund	13,196	13,196	155,055
Large Cap Fund	10,722	10,722	157,291
Large Cap Value Fund	4,507	4,507	103,695
Natural Resources Fund	5,929	5,929	211,088
Quantitative Value Fund	6,468	6,468	107,115
Real Estate Equity Fund	45,918	45,918	504,643
Real Return Bond Fund	39,215	39,215	522,338
Small Company Value Fund	6,418	6,418	151,669
Spectrum Income Fund	30,242	30,242	310,583
Strategic Bond Fund	17,824	17,824	209,793
Strategic Income Fund	15,298	15,298	153,899
Total Return Fund	26,398	26,398	362,971
U.S. Government Securities Fund	7,609	7,609	103,181

463

PricewaterhouseCoopers LLP

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of John Hancock Funds II:

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Funds (identified in Note 1) comprising John Hancock Funds II (the “Trust”) at August 31, 2006, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of investments owned at August 31, 2006 by correspondence with the custodian, transfer agents and brokers, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Boston, Massachusetts

October 26, 2006

464

John Hancock Funds II

Federal Income Tax Information (Unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions of the Fund, if any, paid during its taxable year ended August 31, 2006.

DIVIDEND RECEIVED DEDUCTION Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the Fund’s fiscal 2006 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.

Fund	August 2006

Absolute Return	97.62%
Active Bond	0.07%
All Cap Core	96.84%
All Cap Growth	100.00%
All Cap Value	34.83%
Blue Chip Growth	100.00%
Capital Appreciation	100.00%
Core Bond	0.00%
Core Equity	84.76%
Emerging Growth	1.44%
Emerging Small Company	2.48%
Equity-Income	32.40%
Fundamental Value	69.35%
Global Bond	0.00%
Global Real Estate	5.96%
High Income	3.57%
High Yield	0.16%
International Equity Index	1.16%
International Opportunities	0.00%
International Small Cap	0.52%
International Small Company	0.00%
International Stock	0.45%
International Value	0.00%
Investment Quality Bond	0.00%
Large Cap	54.23%
Large Cap Value	100.00%
Mid Cap Core	17.30%
Mid Cap Index	47.68%
Mid Cap Stock	3.52%
Mid Cap Value Equity	100.00%
Mid Cap Value	30.08%
Natural Resources	9.18%
Quantitative Mid Cap	100.00%
Quantitative All Cap	61.67%
Quantitative Value	35.28%
Real Estate Equity	100.00%
Real Estate Securities	0.03%
Real Return Bond	0.00%
Small Cap	0.00%
Small Cap Index	13.37%
Small Cap Opportunities	8.52%
Small Company	0.00%
Small Company Growth	7.49%
Small Company Value	75.28%
Special Value	64.75%
Spectrum Income	9.66%
Strategic Bond	0.01%
Strategic Income	0.36%
Strategic Value	58.10%
Total Return	0.00%
U.S. Global Leaders Growth	98.67%
U.S. Government Securities	0.00%
U.S. High Yield Bond	0.00%
U.S. Multi Sector	69.62%
Value & Restructuring	100.00%
Vista	0.00%

QUALIFIED DIVIDEND INCOME The Fund hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2006.

Shareholders will be mailed a 2006 U.S. Treasury Department Form 1099-DIV in January 2007. This will reflect the total of all distributions that are taxable for calendar year 2006.

465

John Hancock Funds II

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (Unaudited)

This section describes the evaluation by the Board of Trustees of the Advisory Agreement and each of the Subadvisory Agreements.

EVALUATION BY THE BOARD OF TRUSTEES

The Board of Trustees of John Hancock Funds II (the “Trust”), including all the Trustees who are not “interested persons” as defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), is responsible for selecting the adviser, John Hancock Investment Management Services, LLC (the “Adviser” or “JHIMS”), approving the Adviser’s selection of subadvisers for each of the funds of the Trust (the “Funds”) and approving the Trust’s advisory and subadvisory agreements (and any sub-subadvisory agreements), their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory (and any sub-subadvisory) arrangements, including consideration of the factors listed below. The Board may also consider other factors (including conditions and trends prevailing generally in the economy, the securities markets and the in dustry) and does not treat any single factor as determinative, and each Trustee may attribute different weights to different factors. The Board is furnished with an analysis of its fiduciary obligations in connection with its evaluation and, throughout the evaluation process, the Board is assisted by counsel for the Trust and the Independent Trustees are also separately assisted by independent legal counsel. The factors regularly considered by the Board are:

1. the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;

2. the investment performance of the Funds and their subadvisers;

3. the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;

4. the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and

5. comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all these factors is relevant to its evaluation of the Trust’s advisory agreements. With respect to its evaluation of subadvisory agreements (including sub-subadvisory agreements) with subadvisers not affiliated with the Adviser, the Board believes that, in view of the Trust’s “manager-of-managers” advisory structure, the cost of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor to the Board’s consideration of subadvisory agreements because such fees are paid to subadvisers by the Adviser and not by the Funds and because the Board relies on the ability of the Adviser to negotiate such subadvisory fees at arms-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

BOARD EVALUATION OF AMENDMENTS TO ADVISORY AND SUBADVISORY AGREEMENTS AND OF NEW SUBADVISORY AGREEMENTS

This section describes the evaluation by the Board of Trustees of:

(a) an amendment to the advisory agreement between the Trust and the Adviser to add the following new portfolios:

1. International Small Company Fund

2. Global Real Estate Fund

3. Real Estate Equity Fund

4. Mid Cap Value Equity Fund

5. Absolute Return Portfolio

6. High Income Fund (collectively, the “New Funds”)

(b) the amendment to the advisory agreements between the Trust and the Adviser to decrease the advisory fee for the Emerging Small Company Fund

1. T. Rowe Price Associates, Inc.

(to add the Real Estate Equity Fund)

2. MFC Global Investment Management (U.S.A.) Limited

(to add the Absolute Return Portfolio)

3. Deutsche Asset Management, Inc.

(to add the Global Real Estate Fund)

4. Sovereign Asset Management, LLC

(to add the High Income Fund)

(Each of the subadvisers listed above are collectively referred to as the “Existing Subadvisers.”)

(d) the new subadvisory agreements (the “New Subadvisory Agreements”) between the Adviser and each of the subadvisers listed below:

1. Dimensional Fund Advisers Inc.

(relating to the International Small Company Fund)

2. RiverSource Investments, LLC

(relating to the Mid Cap Value Equity Fund)

3. RCM Capital Management LLC (“RCM”)

(relating to the Emerging Small Company Fund, an existing portfolio of the Trust)

4. RREEF America L.L.C.

RREEF Global Advisers Limited Deutsche Investments Australia Limited

Deutsche Asset Management (Hong Kong) Limited Deutsche Asset Management International GMBH

(sub-subadvisory agreements each relating to the Global Real Estate Fund and in the case of RREEF America L.L.C. also relating to the Real Estate Securities Fund, an existing portfolio of the Trust)

5. Western Asset Management Company

(relating to the U.S. Government Securities Fund, High Yield Fund and the Strategic Bond Fund, each existing portfolios of the Trust)

6. Western Asset Management Company Limited

(sub-subadvisory agreement relating to the Strategic Bond Fund and High Yield Fund, existing portfolios of the Trust)

466

John Hancock Funds II

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (Unaudited) — continued

(Each of the subadvisers above are collectively referred to as the “New Subadvisers.”)

(The Existing Subadvisers and the New Subadvisers are collectively referred to as the “Subadvisers.”)

APPROVAL OF ADVISORY AGREEMENT

At its meeting on March 30-31, 2006, the Board, including all the Independent Trustees, approved an amendment to the Advisory Agreement between the Trust and JHIMS with respect to the New Funds and the Emerging Small Company Fund.

In approving the amendment to the Advisory Agreement, and with reference to the factors which it regularly considers, the Board:

1 (a) considered the high value to the Trust of continuing its relationship with JHIMS as the Trust’s Adviser, the skills and competency with which JHIMS has in the past managed the Trust’s affairs and its subadvisory relationships, JHIMS’s oversight and monitoring of subadvisers’ investment performance and compliance programs including its timeliness in responding to performance issues, and the qualifications of JHIMS’s personnel,

(b) considered JHIMS’s compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments, and

(c) JHIMS’s administrative capabilities, including its ability to supervise the other service providers for the Funds and concluded that JHIMS may reasonably be expected to ably perform its services under the Advisory Agreement with respect to the New Funds and may reasonably be expected to continue to ably perform its services under the Advisory Agreement with respect to the Emerging Small Company Fund.

2 (a) in the case of each New Portfolio (except the Absolute Return Portfolio), reviewed the investment performance of portfolios of the Subadviser that are managed comparably to New Portfolio as set forth in the chart below; the comparative performance of their respective benchmarks; and JHIMS’ analysis of such performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally and with respect to the New Portfolio; and concluded that the portfolios of the Subadviser that are managed comparably to the New Portfolio have performed well or within a range that the Board deemed competitive, and that JHIMS may reasonably be expected to ably monitor the performance of the New Portfolio and its Subadviser.

(b) because there are no funds managed by the Subadviser that have comparable investment objectives and policies to those of the Absolute Return Portfolio, the Board considered the Subadviser’s performance in managing other funds in the Trust and that JHIMS may reasonably be expected to ably monitor the performance of the Absolute Return Portfolio and its Subadviser.

(c) in the case of the Emerging Small Company Fund, an existing portfolio of the Trust, reviewed the investment performance of portfolios of RCM Capital Management LLC (“RCM”) that are managed comparably to Emerging Small Company Fund as set forth in Appendix A below; the comparative performance of their respective benchmarks; and JHIMS’s analysis of such performance and its plans and recommendations regarding the Fund’s subadvisory arrangements generally and with respect to the Emerging Small Company Fund; and concluded that the portfolios of RCM that are managed comparably to the Emerging Small Company Fund have performed well or within a range that the Board deemed competitive, and that JHIMS may reasonably be expected to ably monitor the performance of the Emerging Small Company Fund and RCM.

3 reviewed the advisory fee structure for the New Funds and the Emerging Small Company Fund and the incorporation therein of any subadvisory fee breakpoints in the advisory fees charged and concluded (i) that to the extent that the New Funds and the Emerging Small Company Fund have subadvisory fees with breakpoints, those breakpoints are reflected as breakpoints in the advisory fees for these funds, (ii) that the Emerging Small Company Fund and each New Fund with a subadviser that is not affiliated with the Adviser have subadvisory fees which are the product of arms-length negotiations between the Adviser and the subadviser and which in all cases contain breakpoints, and (iii) that, although economies of scale cannot be measured with precision, these arrangements permit shareholders of these funds to benefit from economies of scale if the fund grows.

4 (a) reviewed the financial statements of JHIMS and John Hancock Life Insurance Company (U.S.A.) (“JHLICO (U.S.A.)”),

(b) reviewed the anticipated profitability of JHIMS’ relationship to the New Funds in terms of the fees it expects to receive with respect to New Funds and whether JHIMS has the financial ability to provide a high level of services to the New Funds,

(c) reviewed the anticipated profitability of JHIMS’ relationship to the Emerging Small Company Trust in terms of the fees it has received and expects to receive with respect to the Emerging Small Company Trust and whether JHIMS has the financial ability to continue to provide a high level of services to the Emerging Small Company Fund,

(d) considered that JHIMS derives reputational and other indirect benefits from providing advisory services to the Emerging Small Company Fund,

(e) considered that JHIMS will derive reputational and other indirect benefits from providing advisory services to the New Funds, and

(f) noted that JHIMS will pay the subadvisory fees out of the advisory fees JHIMS receives from the New Funds and the Emerging Small Company Fund and concluded that the advisory fees to be paid by the New Funds and the Emerging Small Company Fund will not be unreasonable in light of such information; and

5 reviewed comparative information with respect to the advisory fee rates and concluded that the anticipated advisory fees for the New Funds and the Emerging Small Company Fund are within the range of those incurred by other comparable funds and that the advisory structure for the New Funds and the Emerging Small Company Fund is thus competitive within the industry (see Appendix A below for additional information on advisory fees for the New Funds and the Emerging Small Company Fund). The Board also took into account the level and quality of services to be provided by JHIMS with respect to the Funds as well as the other factors considered.

467

John Hancock Funds II

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (Unaudited) — continued

APPROVAL OF SUBADVISORY AGREEMENTS

At its meeting on March 30-31, 2006, the Board, including all the Independent Trustees, approved the Amendments and the New Subadvisory Agreements.

In making its determination with reference to these respective factors, the Board reviewed:

(i) information relating to each Subadviser’s business which included information such as: business performance, assets under management, financial stability and personnel;

(ii) except in the case of the Absolute Return Fund, the investment performance of the Subadviser’s portfolios managed comparably to the portfolio to be managed by the Subadviser and comparative performance information relating to the benchmark;

(iii) in the case of the Absolute Return Fund, investment performance of other portfolios managed by the Subadviser;

(iv) the proposed subadvisory fee for the portfolio to be managed by the Subadviser and comparative fee information; and

(v) information relating to the nature and scope of Material Relationships (as described below) and their significance to the Adviser and the Subadvisers.

The Board noted that in the case of the RREEF America L.L.C., RREEF Global Advisers Limited, Deutsche Investments Australia Limited, Deutsche Asset Management (Hong Kong) Limited and Deutsche Asset Management International GMBH sub-subadvisory agreements that the sub-subadvisory fee would be paid by Deutsche Asset Management, Inc. out of the subadvisory fee and would not be an expense of the Real Estate Equity Fund or Real Estate Securities Fund.

The Board noted that in the case of the Western Asset Management Company Limited sub-subadvisory agreement, that the sub-subadvisory fee would be paid by Western Asset Management Company out of the subadvisory fee and would not be an expense of the Strategic Bond Fund or the High Yield Fund.

The Board’s decision to approve the Amendments and the New Subadvisory Agreements was based on a number of determinations, including the following:

(1) Each Subadviser has extensive experience and demonstrated skills as a manager and may be expected to provide a high quality of investment personnel to each portfolio;

(2) In the case of the Real Estate Securities Fund, RREEF will operate under the ongoing supervision of DeAM which has been the subadviser to the Fund since the Fund’s inception and which retains ultimate responsibility for portfolio management as subadviser;

(3) In the case of each portfolio to be managed by a Subadviser, except the Absolute Return Portfolio, although not without variation, the current and historical performance of the portfolios of the Subadviser managed comparably to the fund of the Trust to be managed by the Subadviser has been within a competitive range of the current and historical performance these portfolios’ respective benchmark (see Appendix A for further information on performance);

(4) In the case of the Absolute Return Portfolio, although not without variation, the current and historical performance of the other funds of the Trust managed by the Subadviser has been within a competitive range of the current and historical performance these funds’ respective benchmark;

(5) The subadvisory fees are within industry norms and, with respect to the new funds with unaffiliated subadvisers, are the product of arms-length negotiations between the Adviser and the Subadvisers (see Appendix A for further information on subadvisory fees).

(6) The Material Relationships consist of arrangements in which certain unaffiliated subadvisers or their affiliates provide advisory, distribution or management services in connection with financial products sponsored by the Trust’s adviser or its affiliates, which may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans, and which in no case contained elements which would cause the Board to conclude that approval of the subadvisory agreement with the subadviser would be inappropriate.

BOARD EVALUATION OF NEW SUBADVISORY AGREEMENT FOR THE SMALL CAP FUND

At its meeting held on March 30-31, 2006, the Board of Trustees, including all of the Independent Trustees, approved a new subadvisory agreement appointing Independence Investments LLC (“New Independence”) to replace Independence Investment LLC (“Old Independence”) as the subadviser to the Small Cap Fund.

The Adviser requested the Board to approve a new subadvisory agreement with New Independence for the Small Cap Fund since the subadvisory agreement with Old Independence terminated as a result of New Independence, a newly formed subsidiary of Convergent Capital Management LLC (“Convergent”), succeeding to the business operations of Old Independence, an indirect wholly-owned subsidiary of Manulife Financial Corporation (“MFC”) on May 31, 2006 (the “Transaction”). Information regarding the Board’s approval of the subadvisory agreement with New Independence is set forth below.

In making its determination with respect to subadvisory agreements, and with reference to the factors which it considers, the Board reviews (1) information relating to the subadviser’s business; which may include information such as business performance, representative clients, assets under management, financial stability, personnel and, if applicable, past subadvisory services to Funds or affiliated funds of the Trust; (2) the investment performance of comparatively managed funds of the Fund and comparative performance information relating to the comparatively managed fund’s benchmark and comparable funds; (3) the proposed subadvisory fee for each Fund and comparative fee information; and (4) information relating to the nature and scope of other material business relationships which unaffiliated subadvisers may have with the Adviser or its affiliates, including the involvement by certain affiliates of certain sub-advisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser.

Particular considerations of the Board in approving the new subadvisory agreement with New Independence for the Small Cap Fund include the following:

1. New Independence will continue the business operations of Old Independence, the Old Independence portfolio manager is expected to continue to manage the assets of the Fund as an employee of New Independence and New Independence may generally be expected to provide at least the same level and quality of management services as Old Independence;

2. Although the limited performance history of the Fund, which commenced operations on October 17, 2005, was not considered

468

John Hancock Funds II

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (Unaudited) — continued

significant, the Trustees noted that the current and historical performance of comparatively managed mutual funds and other accounts managed by the subadviser, although not without variation, has generally been within the range of or exceeded the performance of their benchmarks; and

3. The subadvisory fee with respect to the Fund under the new subadvisory agreement with New Independence is within industry norms, is the same as under the old subadvisory agreement with Old Independence, is paid by the Adviser and not by the Fund and will not result in any advisory fee increases with respect to the Fund.

In addition, the Board considered the potential conflicts of interest related to the arrangements between MFC and Convergent in connection with the transfer of Old Independence to New Independence. Under these arrangements, MFC will receive additional consideration for the Transaction on certain anniversary dates of the closing thereof to the extent the revenue received by New Independence from the management of proprietary accounts of MFC and its affiliates or accounts for which MFC or its affiliates act as investment adviser, including the Fund, meet certain revenue targets. The Board considered in particular the potential conflict of interest between the Adviser’s fiduciary duties in managing subadvisory arrangements to act in the best interests of the Fund and its shareholders and the financial incentives of MFC to influ-ence the Adviser to support the continuation of the subadvisory agreement with New Independence for the periods for which contingent payments may be made to MFC. The Board concluded that, notwithstanding the potential conflicts of interest, approval of the subadvisory agreement was in the best interests of shareholders in view of the bene-fits to shareholders expected from the continuity in subadvisory services that will be afforded by New Independence, the lack of any limitations in the arrangement between MFC and Convergent upon the rights of the Adviser to recommend termination of the subadvisory agreement with New Independence, the Adviser’s fiduciary duties to act in the best interests of the Fund and Fund shareholders and the Board’s ability to monitor conflicts of interest.

RELATED ARRANGEMENTS BETWEEN MFC AND CONVERGENT

In consideration for the transfer of assets and liabilities of Old Independence to New Independence in the Transaction as described above, Convergent paid MFC a specified amount at closing. MFC will also receive additional consideration on certain anniversary dates of the closing to the extent the revenue received by New Independence from the management of proprietary accounts of MFC and its affiliates or accounts for which MFC or its affiliates act as investment adviser, including the Small Cap Fund, meet certain revenue targets. Consequently, while these contingent payments are not dependent upon the approval or continuation of the subadvisory agreement with respect to the Fund, the revenues earned by New Independence as a result of its subadvisory relationship with the Fund would count towards the revenue target necessary for MFC to earn the contingent payments. Nothing in the arrangements between MFC and Convergent imposes any limitations upon the rights of the Adviser to recommend termination of the subadvisory agreement with New Independence. However, these arrangements present certain conflicts of interest because MFC, as the ultimate parent entity of the Adviser, has a financial incentive to influence the Adviser to support the continuation of the subadvisory agreement with New Independence for the periods for which contingent payments may be made to MFC. As discussed above, in approving the new subadvisory agreement with New Independence, the Board of Trustees, including the Independent Trustees, was aware of and considered these potential conflicts of interest.

BOARD EVALUATION OF NEW SUBADVISORY AGREEMENT FOR THE EMERGING GROWTH FUND

At its meeting on March 31, 2006, the Board, including the Independent Trustees, approved entering into a new subadvisory agreement between the Adviser and Sovereign Asset Management LLC (“Sovereign”) to replace MFC Global Investment Management (U.S.A.) LLC (“MFC Global”) as the subadviser for the Emerging Growth Fund.

At its meeting on December 12-13, 2005, the Board of Trustees discussed with the Adviser the performance of the John Hancock Trust Emerging Growth Trust, the Fund’s corresponding portfolio, having lagged behind that of its peer group and benchmark index since inception to September 2005 and the fact that the then current MFC Global portfolio manager for the Emerging Growth Fund was being reassigned and would no longer manage the portfolio. At the Board’s meeting, the Adviser recommended to the Board that the subadviser to the Emerging Growth Fund be replaced with Sovereign, another subadviser affiliated with the Adviser. The Adviser made this recommendation following a review of the capabilities of several affiliated and non-affiliated investment managers to manage the portfolio.

In making its determination with respect to the new subadvisory agreement with Sovereign with respect to the Emerging Growth Fund, and with reference to the factors described above that the Board generally considers in reviewing subadvisory agreements, the Board reviewed: (i) information relating to the subadviser’s business which included information such as: business performance, representative clients, assets under management, financial stability and personnel; (ii) the investment performance of comparatively managed funds and their respective benchmarks; and (iii) the subadvisory fee for the Fund.

The Board’s decision to approve the subadvisory agreement with Sovereign was based on a number of determinations, including the following:

(1) The performance of the John Hancock Trust Emerging Growth Trust, the Fund’s corresponding portfolio, lagged that of its peer group and benchmark index since inception to September 2005.

(2) The portfolio managers in the Sovereign investment management team have been with Sovereign since 2002, have almost 50 years of combined experience and are responsible for managing over 31 accounts with assets of approximately $467 million. Sovereign has extensive experience and demonstrated skills as a manager with respect to equity securities and in using a variety of investment strategies and may be expected to provide a high quality of investment management services and personnel to the Fund;

(3) Although not without variation, the current and historical performance of comparable funds and other client accounts managed by Sovereign have generally been within the range of or exceeded the performance of the fund and its benchmark index;

(4) The subadvisory fee rates for the fund under Sovereign would be the same as the subadvisory fee rates charged by MFC Global and is within industry norms; and

(5) There would be no change in the advisory fee rates for the fund as a result of the new subadvisory agreement.

469

John Hancock Funds II

Appendix A

Portfolio	Performance of Comparable
And Subadviser	Funds as of December 31, 2005	Estimated Fees and Expenses	Comments

Absolute Return	No comparable funds managed	Advisory fees for this Fund were
	by subadviser.	higher than its peer group median.
(MFC Global Investment
Management (U.S.A.) Limited)		Total expenses for this Fund were
		higher than its peer group median.

Emerging Small Company	Performance of RCM Capital	Subadvisory fees for this Trust were	The Board noted that advisory and
	Management’s U.S. Small Cap Core	higher than its peer group median.	subadvisory fees for the portfolio
(RCM Capital Management)	Growth composite outperformed		would decrease as a result of the
	its benchmark index over the one	Advisory fees for this Trust were	change of subadviser from Franklin
	and three year periods and	higher than its peer group median.	Adviser, Inc. to RCM Capital
	underperformed its benchmark		Management.
	index over the five year period.	Total expenses for this Trust were
		in line with its peer group median.
	Performance of the composite
	outperformed its peer group
	average over the one and three
	year periods and underperformed
	over the five year period.

Global Real Estate	Comparable performance is	Subadvisory fees for this Fund were	The Board noted that the peer
	not available.	higher than its peer group median.	group is primarily comprised of
(Subadviser: Deutsche Asset			US-centric strategies, as compared
Management, Inc.		Advisory fees for this Fund were	to the fund.
		higher than its peer group median.
sub-subadvisers:
RREEF America L.L.C.		Total expenses for this Fund were
RREEF Global Advisers Limited		lower than its peer group median.
Deutsche Investments
Australia Limited
Deutsche Asset Management
(Hong Kong) Limited
Deutsche Asset Management
International GMBH)

High Income	Performance of the High Yield	Subadvisory fees for this Trust were
	Fund of John Hancock Funds has	lower than its peer group median.
(Sovereign Asset	outperformed its benchmark
Management, LLC)	index over the one, three and five	Advisory fees for this Trust were
	year periods.	higher than its peer group median.

	Performance of the fund has	Total expenses for this Trust were
	outperformed its peer group	higher than its peer group median.
	average over the one, three and
	five year periods.

High Yield	Performance of the WAMCO High	Subadvisory fees for this Fund were	The Board noted that advisory and
	Yield Composite has outperformed	lower than its peer group median.	subadvisory fees for the portfolio
(Subadviser:	its benchmark index over the one		would decrease as a result of the
Western Asset Management	year period and has underperformed	Advisory fees for this Fund were	change of subadviser from Salomon
Company Limited)	its benchmark index over the three	higher than its peer group median.	Brother Asset Management Inc. to
	and five year periods.		Western Asset Management Company.
		Total expenses for this Fund were
	Performance of the WAMCO High	lower than its peer group median.
	Yield Composite has outperformed
	its peer group average over the one,
	three and five year periods.

470

John Hancock Funds II

Appendix A — continued

Portfolio	Performance of Comparable
and Subadviser	Funds as of December 31, 2005	Estimated Fees and Expenses	Comments

International Small Company	Comparable performance is	Subadvisory fees for this Fund were	The Board noted that the peer group
	not available.	higher than its peer group median.	for this portfolio only included
(Dimensional Fund			two funds.
Advisers, Inc.)		Advisory fees for this Fund were
		higher than its peer group median.

		Total expenses for this Fund were
		higher than its peer group median.

Mid Cap Value Equity	Performance of the RiverSource	Subadvisory fees for this Fund were
	Mid Cap Value Mutual Fund has	lower than its peer group median.
(RiverSource Investments, LLC)	outperformed its benchmark index
	over the one and three year periods.	Advisory fees for this Fund were
		higher than its peer group median.
	Performance of the RiverSource
	Mid Cap Value Mutual Fund has	Total expenses for this Fund were
	outperformed its peer group average	slightly higher than its peer
	over the one and three year periods.	group median.

Real Estate Equity	Performance of the Real Estate	Subadvisory fees for this Fund were
	Fund of T. Rowe Price has	lower than its peer group median.
(T. Rowe Price Associates, Inc.)	outperformed its benchmark
	index over the one, three and five	Advisory fees for this Fund were
	year periods.	higher than its peer group median.

	Performance of the Real Estate	Total expenses for this Fund were
	Fund of T. Rowe Price has	lower than its peer group median.
	outperformed its peer group
	average over the one, three and
	five year periods.

Real Estate Securities	Performance of the DWS RREEF	Subadvisory fees for this Fund were	The Board noted that advisory and
	Real Estate Securities Fund,	lower than its peer group median.	subadvisory fees for the portfolio
(Subadviser:	the model for the Trust, has		would not change as a result of the
Deutsche Asset	outperformed its benchmark	Advisory fees for this Fund were	addition of RREEF America L.L.C. as a
Management, Inc.	index over the one, three and five	lower than its peer group median.	sub-subadviser to the portfolio.
	year periods.
sub-subadviser:		Total expenses for this Fund were
RREEF America L.L.C.)	Performance of the Fund has	lower than its peer group median.
	outperformed its peer group
	average over the one, three and
	five year periods.

Strategic Bond	Performance of the Western Asset	Subadvisory fees for this Fund were	The Board noted that advisory and
	Core Plus Bond Institutional	lower than its peer group median.	subadvisory fees for the portfolio
(Subadviser:	Mutual Fund underperformed its		would decrease as a result of the
Western Asset	benchmark over the one year	Advisory fees for this Fund were	change of subadviser from Salomon
Management Company	period and has outperformed its	higher than its peer group median.	Brother Asset Management Inc. to
	benchmark index over the three		Western Asset Management Company.
Sub-subadviser:	and five year periods.	Total expenses for this Fund were
Western Asset Management		lower than its peer group median.
Company Limited)	Performance of the Western Asset
	Core Plus Bond Institutional
	Mutual Fund has outperformed
	its peer group average over the one,
	three and five year periods.

471

John Hancock Funds II

Appendix A — continued

Portfolio	Performance of Comparable
And Subadviser	Funds as of December 31, 2005	Estimated Fees and Expenses	Comments

U.S. Government Securities	Performance of a blended group	Subadvisory fees for this Fund were	The Board noted that the peer group
	of U.S. Government accounts	in line with its peer group median.	for this portfolio consisted only of
(Western Asset	managed by Western Asset		two funds.
Management Company)	Management has outperformed	Advisory fees for this Fund were in
	its blended benchmark of U.S.	line with its peer group median.	The Board noted that advisory and
	Government indexes and the Short		subadvisory fees for the portfolio
	Government Bond peer group	Total expenses for this Fund were	would decrease as a result of the
	average over the one, three and	lower than its peer group median.	change of subadviser from Salomon
	five year periods.		Brother Asset Management Inc. to
			Western Asset Management Company.

472

John Hancock Funds II

Trustees and Officers (Unaudited)

This chart provides information about the Trustees and Officers who oversee your John Hancock fund. Officers elected by the Trustees manage the day-to-day operations of the Fund and execute policies formulated by the Trustees.

Independent Trustees

Name, age		Number of
*Position(s) held with Trust*	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since¹	by Trustee

Charles L. Bardelis, Born: 1941	2005	209

President and Executive Officer, Island Commuter Corp. (Marine Transport).
Trustee of John Hancock Trust (since 1988) and John Hancock Funds III (since 2005).


Peter S. Burgess, Born: 1942	2005	209

Consultant (financial, accounting and auditing matters (since 1999); Certified Public Accountant; Partner,
Arthur Andersen (prior to 1999).
Director of the following publicly traded companies: PMA Capital Corporation (since 2004) and Lincoln Educational
Services Corporation (since 2004).
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


Elizabeth G. Cook, Born: 1937	2005	209

Expressive Arts Therapist, Massachusetts General Hospital (September 2001 to present); Expressive Arts Therapist,
Dana Farber Cancer Institute (September 2000 to January 2004); President, The Advertising Club of Greater Boston.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


William H. Cunningham, Born: 1944	2005	160

Former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman
and CEO, IBT Technologies (until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting, Inc. and
Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing) (since 2001), Adorno/Rogers Technology, Inc.
(until 2004), Pinnacle Foods Corporation (until 2003), rate Genius (until 2003), Lincoln National Corporation (insurance)
(since 2006), Jefferson-Pilot Corporation (diversified life insurance company) (until 2006), New Century Equity Holdings
(formerly Billing Concepts) (until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures (until 2001),
AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems Group, Inc. (electronic manufacturer) (until 2003);
Advisory Director, Interactive Bridge, Inc. (college fundraising) (until 2001); Advisory Director, Q Investments (until 2003);
Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce Bank - Austin), LIN Television (since 2002), WilTel
Communications (until 2003) and Hayes Lemmerz International, Inc. (diversified automotive parts supply company)
(since 2003).
Trustee of John Hancock Funds (since 2005) and John Hancock Funds III (since 2005).


Charles L. Ladner, Born: 1938	2005	160

Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003); Senior Vice President and Chief Financial
Officer, UGI Corporation (public utility holding company) (retired 1998); Vice President and Director for AmeriGas, Inc.
(retired 1998); Director of AmeriGas Partners, L.P. (gas distribution) (until 1997); Director, EnergyNorth, Inc. (until 1995);
Director, Parks and History Association (since 2007).
Trustee of John Hancock Funds (since 2004) and John Hancock Funds III (since 2005).


Hassell H. McClellan, Born: 1945	2005	209

Associate Professor, The Wallace E. Carroll School of Management, Boston College.
Trustee of John Hancock Trust (since 2005) and John Hancock Funds III (since 2005).


James. M. Oates, Born: 1946	2005	209

Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman, Emerson Investment Management,
Inc. (since 2000); Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company)
(since 1997).
Director of the following publicly traded companies: Stifel Financial (since 1996); Investor Financial Services Corporation
(since 1995); and Connecticut River Bancorp, Director (since 1998). Director, Phoenix Mutual Funds (since 1988;
overseeing 20 portfolios).
Trustee of John Hancock Trust (since 2004) and John Hancock Funds III (since 2005).

¹Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his/her successor is duly
elected and qualified or until he/she dies, retires, resigns, is removed or becomes disqualified.

473

John Hancock Funds II

Trustees and Officers (Unaudited) — continued

Non-Independent Trustees³

Name, age		Number of
*Position(s) held with Trust*	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since¹	by Trustee

James R. Boyle, Born: 1959	2005	262

Chairman and Director, John Hancock Advisers, LLC (the “Adviser”), The Berkeley Financial Group, LLC (“The Berkeley Group”) (holding company)
and John Hancock Funds, LLC (since 2005); President, John Hancock Annuities; Executive Vice President, John Hancock Life Insurance Company
(since June, 2004); President U.S. Annuities; Senior Vice President, The Manufacturers Life Insurance Company (U.S.A) (prior to 2004).

Principal officers who are not Trustees


Name, age
*Position(s) held with Trust*		Officer
Principal occupation(s) and		of Fund
directorships during past 5 years		since

Keith Hartstein², Born: 1956		2005

President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser and The Berkeley Group,
John Hancock Funds, LLC (since 2005); Director, MFC Global Investment Management (U.S.), LLC (“MFC Global (U.S.)”) (since 2005); Director,
John Hancock Signature Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock Investment Management Services, LLC
(since 2006); President and Chief Executive Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust,;
Director, Chairman and President, NM Capital Management, Inc. (since 2005); Chairman, Investment Company Institute Sales Force Marketing
Committee (since 2003); Director, President and Chief Executive Officer, MFC Global (U.S.) (2005-2006); Executive Vice President, John Hancock
Funds, LLC (until 2005).


John Vrysen², Born: 1955		2005

Chief Financial Officer
Director, Executive Vice President and Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since 2005); Executive
Vice President and Chief Financial Officer, John Hancock Investment Management Services, LLC (since 2005), Vice President and Chief Financial
Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds,
John Hancock Funds II, John Hancock Funds III, John Hancock Trust (since 2005); Vice President and General Manager, Fixed Annuities, U.S. Wealth
Management (until 2005); Vice President, Operations Manulife Wood Logan (2000-2004).


Francis V. Knox, Jr.², Born: 1947		2005

Chief Compliance Officer
Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005);
Chief Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and
Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics & Compliance Officer, Fidelity Investments (until 2001).


Gordon Shone², Born: 1956		2005

Treasurer
Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and
Chief Financial Officer, John Hancock Trust (2003-2005); Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001);
Vice President, John Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC (since 2006), The Manufacturers Life Insurance
Company (U.S.A.) (1998 to 2000).


Thomas M. Kinzler², Born: 1955		2006

Secretary and Chief Legal Officer
Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock Funds,
John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006); Vice President and Associate General Counsel for Massachusetts
Mutual Life Insurance Company (1999-2006); Secretary and Chief Legal Counsel for MML Series Investment Fund (2000-2006); Secretary and Chief
Legal Counsel for MassMutual Institutional Funds (2000-2004); Secretary and Chief Legal Counsel for MassMutual Select Funds and MassMutual
Premier Funds (2004-2006).

¹Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his successor is duly elected
and qualified or until he dies, retires, resigns, is removed or becomes disqualified.
²Affiliated with the investment adviser.
³Non-Independent Trustee: holds positions with the Fund’s investment adviser, underwriter, and/ or certain other affiliates.

474

John Hancock Funds II

Trustees and Officers (Unaudited) — continued

The business address for all Trustees and Officers is 601 Congress Street, Boston, Massachusetts 02210-2805.

The Statement of Additional Information, a separate document with supplemental information not contained in the Prospectus, includes additional information on the Board of Trustees and can be obtained without charge by calling 1-800-344-1029 or on the Securities and Exchange Commission (“SEC”) Web site at www.sec.gov.

PROXY VOTING POLICY A description of the Trust’s proxy voting policies and procedures and information regarding how the Trust voted proxies relating to fund securities during the most recent twelve-month period ended August 31 is available without charge, upon request, by calling 1-800-344-1029 or on the Trust’s website at www.jhfunds.com or on the SEC internet website at www.sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE The fund files a complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q.The fund’s Form N-Q is available electronically on the SEC’s Web site (www.sec.gov); hard copies may be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth St., N.W., Washington, DC 20549. For more information on the Public Reference Room, call 1-800-SEC-0330.

475

Management of the Trust

Trustees
Charles L. Bardelis
Peter S. Burgess
Elizabeth G. Cook
William H. Cunningham
Charles L. Ladner
Hassell H. McLellan
James M. Oates
James R. Boyle

Officers
Keith F. Hartstein, President
John G. Vrysen, Chief Financial Officer
Francis V. Knox, Vice President and Chief Compliance Officer
Gordon M. Shone, Treasurer
Thomas M. Kinzler, Secretary and Chief Legal Officer
George M. Boyd, Assistant Secretary

Investment Adviser
John Hancock Investment Management Services, LLC
Boston, Massachusetts

601 Congress Street
Boston MA 02210-2805

JHF2AN 8/06

ITEM 2. CODE OF ETHICS.

(a) As of the end of the period, August 31, 2006, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer and Chief Financial Officer (respectively, the principal executive officer and the principal financial officer, the “Covered Officers”). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(b)Not Applicable

(c)Not Applicable

(d)Not Applicable

(e)Not Applicable

(f)(1) A copy of the Code of Ethics is attached hereto.

JOHN HANCOCK FUNDS II
JOHN HANCOCK FUNDS III

SARBANES-OXLEY CODE OF ETHICS
FOR
PRINCIPAL EXECUTIVE AND
PRINCIPAL FINANCIAL OFFICERS

I. Covered Officers/Purpose of the Code

This code of ethics (this “Code”) for John Hancock Funds II and John Hancock Funds III, each a registered management investment company under the Investment Company Act of 1940, as amended (“1940 Act”), which may issue shares in separate and distinct series (each investment company and series thereunder to be hereinafter referred to as a “Fund”), applies to each Fund’s Principal Executive Officer (“President”) and Principal Financial Officer (“Chief Financial Officer”) (the “Covered Officers,” as set forth in Exhibit A) for the purpose of promoting:

* honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

* full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Fund;

* compliance with applicable laws and governmental rules and regulations;

* the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

* accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview. A “conflict of interest” occurs when a Covered Officer’s private interest interferes with the interests of, or his service to, the Fund. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fund. Certain conflicts of interest arise out of the relationships between Covered Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the “Investment Company Act”) and the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as “affiliated persons” of the Fund. Each Covered Officer is an officer or employee of the investment adviser or a service provider (“Service Provider”) to the Fund. The Fund’s, the investment adviser’s and the Service Provider’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the investment adviser and the Service Provider of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fund, for the investment adviser or for the Service Provider), be involved in establishing policies and implementing decisions which will have different effects on the investment adviser, the Service Provider and the Fund. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser and the Service Provider and is consistent with the performance by the Covered Officers of their duties as officers of the Fund. Thus, if such participation is performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, it will be deemed to have been handled ethically. In addition, it is recognized by the Fund’s Board of Directors (the “Board”) that the Covered Officers may also be officers or employees of one or more other investment companies covered by other Codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Fund.

* * *

Each Covered Officer must:

* not use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;

* not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than for the benefit of the Fund; and

* not use material non-public knowledge of portfolio transactions made or contemplated for the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

Additionally, conflicts of interest may arise in other situations, the propriety of which may be discussed, if material, with the Fund’s Chief Compliance Officer (“CCO”). Examples of these include:

* service as a director/trustee on the board of any public or private company;

* the receipt of any non-nominal gifts;

* the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety (or other formulation as the Fund already uses in another code of conduct);

* any ownership interest in, or any consulting or employment relationship with, any of the Fund’s service providers, other than its investment adviser, any sub-adviser, principal underwriter, administrator or any affiliated person thereof; and

* a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment, such as compensation or equity ownership.

III. Disclosure & Compliance

* Each Covered Officer should familiarize him- or herself with the disclosure requirements generally applicable to the Fund;

* Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund’s directors and auditors, and to governmental regulators and self-regulatory organizations;

* Each Covered Officer should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Fund and the

Fund’s adviser or any sub-adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and

* It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV. Reporting and Accountability

Each Covered Officer must:

* upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he/she has received, read, and understands the Code;

* annually thereafter affirm to the Board that he/she has complied with the requirements of the Code;

* not retaliate against any employee or Covered Officer or their affiliated persons for reports of potential violations that are made in good faith;

* notify the Fund’s CCO promptly if he/she knows of any violation of this Code (Note: failure to do so is itself a violation of this Code); and

* report at least annually any change in his/her affiliations from the prior year.

The Fund’s CCO is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers sought by the Principal Executive Officer will be considered by the Fund’s Board or a designated committee thereof (the “Committee”).

The Fund will follow these procedures in investigating and enforcing this Code:

* the Fund’s CCO will take all appropriate action to investigate any potential violations reported to him/her;

* if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take any further action;

* any matter that the CCO believes is a violation will be reported to the Board or, if applicable, Committee;

* if the Board or, if applicable, Committee concurs that a violation has occurred, the Board, either upon its determination of a violation or upon recommendation of the Committee, if applicable, will consider appropriate action, which may include review of, and appropriate modifications to,

applicable policies and procedures; notification to appropriate personnel of the Service Provider or the investment adviser or its board; or a recommendation to dismiss the Covered Officer;

* the Committee will be responsible for granting waivers, as appropriate; and

* any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Fund, the Fund’s adviser, any sub-adviser, principal underwriter or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Fund’s and its investment adviser’s codes of ethics under Rule 204A-1 under the Investment Advisers Act and Rule 17j-1 under the Investment Company Act, respectively, are separate requirements applying to the Covered Officers and others, and are not part of this Code.

VI. Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Fund’s Board, including a majority of independent directors.

VII. Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fund’s Board and its counsel, the investment adviser and the relevant Service Providers.

VIII. Internal Use

The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of the Fund, as to any fact, circumstance, or legal conclusion.

Exhibit A
Persons Covered by this Code of Ethics
(As of August__, 2005)

John Hancock Funds II
Principal Executive Officer and President
Principal Financial Officer and Chief Financial Officer

John Hancock Funds III
Principal Executive Officer and President
Principal Financial Officer and Chief Financial Officer

(f)(2) The Registrant will provide a copy of the Code of Ethics to any person without charge, upon request by calling the following toll free number (800) 344-1029.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the Registrant has determined that it has one “audit committee financial expert” as that term is defined in Item 3(b) of Form N-CSR: Peter S. Burgess, who is “independent” as that term is defined in Item 3(a) (2) of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) AUDIT FEES:

2006: $1,346,000

These fees represent aggregate fees billed for the period from commencement of operations (10/15/05) to fiscal year end (8/31/06) (the “Reporting Period”) for professional services rendered by the principal accountant, PricewaterhouseCoopers LLP (“PWC”), for the audits of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filing or engagements for such period.

(b) AUDIT RELATED FEES:

2006: $629,000

These fees represent the aggregate fees billed for the Reporting Period for assurance and related services by PWC that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item. Such fees relate to professional services rendered by PWC for separate audit reports in connection with 17f-2 security counts and fund merger audit services.

2006: $374,000

These fees represent aggregate fees billed for the Reporting Period for professional services rendered by PWC for tax compliance, tax advice and tax planning. The tax services provided by PWC related to the review of the Registrant’s federal and state income tax returns, excise tax calculations and returns and a review of the Registrant’s calculations of capital gain and income distributions.

(d) ALL OTHER FEES; None.

(e) (1) The audit committee’s pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X are attached.

September 2005

John Hancock Funds II
Audit Committee
Audit and Non-Audit Services Pre-Approval Policy

I. Statement of Principles

Under the Sarbanes-Oxley Act of 2002 (the “Act”), the Audit Committee of the Board of Trustees is responsible for the appointment, compensation and oversight of the services provided by the independent auditor to John Hancock Funds II (the “Trust”). As part of this responsibility, the Audit Committee is required to pre-approve the audit and non-audit services performed by the Trust’s independent auditor (the “Auditor”) in order to assure that these services do not impair the Auditor’s independence. In addition, these procedures also require the Audit Committee to pre-approve non-audit services provided by the Auditor to Manulife Financial Corporation (or any subsidiary thereof) where such services provided have a direct impact on the operations or financial reporting of the Trust as further assurance that such services do not impair the Auditor’s independence.

This Policy follows two different approaches to pre-approving services: (1) proposed services may be pre-approved (“general pre-approval”), or (2) proposed services will require specific pre-approval (“specific pre-approval”). Unless a type of service provided by the Auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee.

Exhibit I to this Policy describes the Audit, Audit-related, Tax and All Other Services that have been pre-approved by the Audit Committee. The Audit Committee will annually review these services. It is expected that such review will occur at the regularly scheduled April Audit Committee meeting.

II. Delegation

The Audit Committee may delegate pre-approval authority to its chairperson or any other member or members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next meeting following the pre-approval. If pre-approval of any services to be provided by the Auditors is required before the next regularly scheduled Audit Committee meeting, the Audit Committee hereby authorizes its chairman to provide such pre-approval.

III. Audit Services

The Trust’s annual audit services engagement scope and terms will be subject to the general pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures required to be performed by the independent auditor in order to be able to form an opinion on the Trust’s financial statements. The Audit services that are pre-approved are set forth in Exhibit I.

IV. Audit-related Services

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Trust’s financial statements or that are traditionally performed by the independent auditor.

The audit-related services that are pre-approved are set forth in Exhibit I.

V. Tax Services

The SEC has stated generally that an independent auditor may provide tax services to a mutual fund, such as tax compliance, tax planning and tax advice, since such services do not impair the auditor’s independence.

The tax services that are pre-approved are listed in Exhibit I.

VI. All Other Services

The Audit Committee believes that other types of non-audit services are also permitted and that it may grant general pre-approval to non-audit services that it believes (a) are routine and recurring services, (b) would not impair the independence of the auditor and (c) are consistent with the Act and the rules relating thereto.

The non-audit services for which the Audit Committee has granted general pre-approval are set forth in Exhibit I.

The Auditor is permitted to assist management with internal investigations and fact-finding into alleged improprieties; however, these services are subject to specific pre-approval and engagement by the Audit Committee.

VII. Prohibited Services

Services which result in the auditor losing independence status under the rule include (1) Bookkeeping or other services related to the accounting records or financial statements of the Trust; (2) Financial information systems design and implementation; (3) Appraisal or valuation services, fairness opinions, or contribution-in-kind reports; (4) Actuarial services (i.e., setting actuarial reserves versus actuarial audit work); (5) Internal audit outsourcing services; (6) Management functions or human resources; (7) Broker or dealer, investment advisor, or investment banking services; (8) Legal services and expert services unrelated to the audit; (9) Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

VIII. Procedures

At least annually, the Trust’s Chief Financial Officer and the Auditor shall jointly submit to the Audit Committee for approval a revised EXHIBIT I. If any of the fee amounts listed on EXHIBIT I change materially subsequent to the Audit Committees approval, an updated EXHIBIT I will be presented to the Audit Committee at the next regularly scheduled meeting.

EXHIBIT I
John Hancock Funds II
Schedule of Audit, Audit-Related, Tax and Other Non-Audit Services
Subject to General Pre-Approval

Service		Summary of Services	Projected Fees/ Fee Cap

*Audit Services*

Audit	Recurring audit of financial statements of the Trust in		JHF II as of 8/31/2006
	accordance with generally accepted auditing standards
	including, but not limited to:		$1,529,584 plus $139,650 out-of-pocket
			expenses including non-recurring fees of
	•	Annual letter regarding the Trust’s internal control to be	$570,000 based on 49 funds approved on August
		included in the annual report to the SEC on Form N-	23, 2005.
		SAR;
	•	Review of the annual poet-effective amendment to the	Actual number of funds is 59, an increase of 10.
		Trust’s registration statement on SEC Form N-1A, and	Fee increase due to scope change is $195,833
		consent to the incorporation by reference of our report	plus out-of-pocket of $28,500 (average of
		on the Trust’s financial statements in such SEC filing;	$28,500/fund for both audit and tax). There is a
	•	Review of each Trust portfolio’s tax provision and RIC	corresponding increase in non-recurring fees of
		qualification calculation	$35,000 as well.
	•	Accounting consultations and tax services required to
		perform an audit in accordance with Generally
		Accepted Auditing Standards.





	Other audit and special reports including, but not limited to:		Up to but not to exceed $30,000 per instance.
			(was$15k)
	•	All services relating to any subsequent filings of
		registration statements (including amendments thereto)
		for the Trust with the SEC, including issuance of
		auditor consents.

Service		Summary of Services	Projected Fees/ Fee Cap

*Audit-Related Services*

Consultations	Includes consultations relating to new regulatory rules and		Up to but not to exceed $25,000 per instance
concerning accounting	guidance, unusual or non-recurring transactions and other		(was $10k)
and financial reporting	regulatory or financial reporting matters which are generally
standards	non-recurring.

Other auditing	Auditing procedures and special reports, including those		$24,500 including expenses for the required 17f-
procedures and	needed for:		2 security counts
issuance of special	•	Separate audit reports in connection with 17f-2 security
purpose reports		counts

	•	Various government agencies tax authorities and Fund	Up to but not to exceed $25,000 per instance
		mergers	(was $10k)

*Tax Services*


Tax Services	Recurring tax services including, but not limited to:		John Hancock Funds II as of 8/31/2006
	•	Review of each Trust portfolio’s federal, and if
		applicable, state tax returns	$267,540 plus $29,726 out-of-pocket expenses
	•	Review required Trust portfolio distributions to avoid	based on 49 funds approved on August 23, 2005.
		excise tax and review related excise tax returns
			Actual number of funds is 59, an increase of 10.
			Fee increase due to scope change is $54,600 plus
			out-of-pocket of $6,067 (average of
			$28,500/fund for both audit and tax).

Consultations on various	Consultation on U.S. tax matters, such as, funs
tax matters	reorganizations; tax basis earnings and profits		Up to but not to exceed $30,000 per instance
	computations, evaluating the tax characteristics if certain		(was $10k)
	expenses and income items; advice on accounting methods,
	timing issues, compliance matters and characterization
	issues.

*Other Non-Audit*	Training and industry updates		Up to but not to exceed $25,000 per instance
*Services*			(was $5k)
*Overall Cap*	In addition to the per instance caps, this reflect an overall		Up to but not to exceed $50,000
	cap on the Trust.

NOTE: Fees included above have been approved by the audit committee at the August 23, 2005 and March 30, 2006 Board of Trustee meetings for JHF II with a fiscal year end of August 31, 2006.

(2) Amount approved by the Audit Committee pursuant paragraph (c) (7) ((i) (7) of Rule 2-01 of Regulation S-X: None.

(f) Not Applicable.

(g) Aggregate non-audit fees billed by PWC for non-audit services rendered to Registrant for Reporting Period was $0. Aggregate non-audit fees billed by PWC for non-audit service rendered to the Registrant’s investment adviser and service affiliates for the Reporting Period was $0. These amounts include fees for non-audit services required to be pre-approved and fees for non-audit services that did not require pre-approval since they did not relate to the Registrant’s operations and financial reporting.

(h) The Registrant’s audit committee of the Board of Trustees has considered the provision of non-audit services that were rendered to the Registrant’s investment adviser and service affiliates that were not pre-approved pursuant to paragraph (c) (7) of Rule 2-01 of Regulation S-X, to be compatible with maintaining PWC’s independence

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS Not Applicable.

ITEM 6. SCHEDULE OF INVESTMENTS. Included with Item 1.

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. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANIES AND AFFILIATED PURCHASERS. Not Applicable.

ITEM 10. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. Not Applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such disclosure controls and procedures include controls and procedures designed to ensure that such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Within 90 days prior to the filing date of this Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures relating to information required to be disclosed on Form N-CSR. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are operating effectively to ensure that:

(i) information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission, and (ii) information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) CHANGE IN REGISTRANT’S INTERNAL CONTROL: Not Applicable.

ITEM 12. EXHIBITS.

(a)(1) SEE ATTACHED CODE OF ETHICS.

(a)(2)(i) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER.

(a)(2)(ii) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER.

(b) CERTIFICATION PURSUANT TO Rule 30a-2(b) OF THE INVESTMENT COMPANY ACT OF 1940

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 II

_______________________________
/S/ Keith F. Hartstein
President and
Chief Executive Officer
Date October 27, 2006

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.

________________________________
/S/ Keith F. Hartstein
President and
Chief Executive Officer
Date October 27, 2006

_________________________________
/S/ John G. Vrysen
Chief Financial Officer
Date October 27, 2006

John Hancock Funds II N-CSRCertified annual shareholder report (management investment company)