John Hancock Funds II NCSRS Certified semi-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)

MICHAEL J. LEARY, 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) 663-4490
--------------
Date of fiscal year end: 8/31
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Date of reporting period: 2/28/11
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ITEM 1. REPORTS TO STOCKHOLDERS.

The Registrant prepared six semiannual reports to shareholders for the period ended February 28, 2011. The first report applies to the Floating Rate Income Fund, the second report applies to the Natural Resources Fund, the third report applies to the Strategic Income Opportunities Fund, the fourth report applies to the Alternative Asset Allocation Fund, the fifth report applies to the 8 Lifecycle Portfolios and the sixth report applies to 68 of the Registrant’s Funds.

A look at performance

For the period ended February 28, 2011


										SEC 30-day	SEC 30-day
	Average annual total returns (%)				Cumulative total returns (%)					yield (%)	yield (%)
	with maximum sales charge (POP)				with maximum sales charge (POP)					subsidized	unsubsidized¹

				Since					Since	as of	as of
	1-year	5-year	10-year	inception²	6-months	1-year	5-year	10-year	inception²	2-28-11	2-28-11

Class A	7.22	—	—	4.83	4.84	7.22	—	—	16.09	3.19	3.16

Class B	4.83	—	—	4.24	2.79	4.83	—	—	14.02	2.52	2.42

Class C	8.84	—	—	5.16	6.78	8.84	—	—	17.23	2.53	2.52

Class I³	11.10	—	—	6.28	8.41	11.10	—	—	21.24	3.74	3.74

Class 1³	11.13	—	—	6.31	8.43	11.13	—	—	21.33	3.73	3.72

Class NAV ³	11.18	—	—	6.37	8.45	11.18	—	—	21.56	3.78	3.78

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charges on Class A shares of 3%, and the applicable contingent deferred sales charge (CDSC) on Class B shares and Class C shares. The Class B shares’ CDSC declines annually between years 1 to 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 charges are not applicable for Class I, Class 1 and Class NAV shares.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The net expenses are as follows: Class A — 1.20%, Class B — 1.95% and Class C — 1.95%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.29%, Class B — 2.10% and Class C — 1.99%. For the other classes, the net expenses equal the gross expenses and are as follows: Class I — 0.81%, Class 1 — 0.78%, Class NAV — 0.73%.

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 Fund’s current performance may be higher or lower than the performance shown. For current to the most recent month end performance data, please call 1–800–225–5291 or visit the Fund’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 Fund’s performance results reflect any applicable expense reductions, without which the expenses increase and results would have been less favorable.

¹Unsubsidized yields reflect what the yields would have been without the effect of reimbursements and waivers.

²From 1-2-08.

³For certain types of investors, as described in the Fund’s Class I, Class 1 and Class NAV shares prospectuses.


6	Floating Rate Income Fund \| Semiannual report


	Period	Without	With maximum
	beginning	sales charge	sales charge	Index

Class B	1-2-08	$11,692	$11,402	$12,193

Class C²	1-2-08	11,723	11,723	12,193

Class I³	1-2-08	12,124	12,124	12,193

Class 1³	1-2-08	12,133	12,133	12,193

Class NAV³	1-2-08	12,156	12,156	12,193

Assuming all distributions were reinvested for the period indicated, the table above shows the value of a $10,000 investment in the fund’s Class B, Class C, Class I, Class 1 and Class NAV shares, respectively, as of 2-28-11. 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.

S&P/LSTA Performing Loan Index is a subset of the S&P/LSTA Leveraged Loan Index tracking returns in the leveraged loan market and capturing a broad cross-section of the U.S. leveraged loan market, including dollar-denominated, U.S.-syndicated loans to overseas issuers and excluding those in default.

It is not possible to invest directly in an index. Index figures do not reflect sales charges, which would have resulted in lower values if they did.

¹NAV represents net asset value and POP represents public offering price.

²The contingent deferred sales charge, if any, is not applicable.

³For certain types of investors, as described in the Fund’s Class I, Class 1 and Class NAV shares prospectuses.


	Semiannual report \| Floating Rate Income Fund	7

Your expenses

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

Understanding fund expenses

As a shareholder of the Fund, 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 fund expenses.

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

Actual expenses/actual returns

This example is intended to provide information about the Fund’s actual ongoing operating expenses, and is based on the Fund’s actual return. It assumes an account value of $1,000.00 on September 1, 2010 with the same investment held until February 28, 2011.


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11¹

Class A	$1,000.00	$1,080.80	$6.19

Class B	1,000.00	1,077.90	10.05

Class C	1,000.00	1,077.80	9.94

Class I	1,000.00	1,084.10	4.08

Class 1	1,000.00	1,084.30	3.98

Class NAV	1,000.00	1,084.50	3.72

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 February 28, 2011, 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:


8	Floating Rate Income Fund \| Semiannual report

Hypothetical example for comparison purposes

This table allows you to compare the Fund’s ongoing operating expenses with those of any other fund. It provides an example of the Fund’s hypothetical account values and hypothetical expenses based on each class’s actual expense ratio and an assumed 5% annualized return before expenses (which is not the Fund’s actual return). It assumes an account value of $1,000.00 on September 1, 2010, with the same investment held until February 28, 2011. 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
	on 9-1-10	on 2-28-11	period ended 2-28-11¹

Class A	$1,000.00	$1,018.80	$6.01

Class B	1,000.00	1,015.10	9.74

Class C	1,000.00	1,015.20	9.64

Class I	1,000.00	1,020.90	3.96

Class 1	1,000.00	1,021.00	3.86

Class NAV	1,000.00	1,021.20	3.61

Remember, these examples do not include any transaction costs, 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.

¹Expenses are equal to the Fund’s annualized expense ratio of 1.20%, 1.95%, 1.93%, 0.79%, 0.77% and 0.72% for Class A, Class B, Class C, Class I, Class 1 and Class NAV shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).


	Semiannual report \| Floating Rate Income Fund	9

Portfolio summary


Top 10 Issuers¹

Visant Corp.	2.7%	Freescale Semiconductor, Inc.	1.9%

Texas Competitive Electric Holdings		First Data Corp.	1.9%
Company LLC	2.6%
		Charter Communications
Harrah’s Operating Company, Inc.	2.5%	Operating LLC	1.6%

Community Health Systems, Inc.	2.2%	Cengage Learning, Inc.	1.6%

Univision Communications, Inc.	2.0%	Intelsat Jackson Holdings SA	1.6%


Sector Composition^2,3

Consumer Discretionary	33%	Financials	6%

Health Care	14%	Consumer Staples	5%

Industrials	9%	Telecommunication Services	5%

Information Technology	7%	Energy	2%

Materials	6%	Short-Term Investments & Other	7%

Utilities	6%


Quality Composition^2,4

A	1%	CCC & Below	7%

BBB	3%	Equity	2%

BB	27%	Not Rated	3%

B	50%	Short-Term Investments & Other	7%

¹As a percentage of net assets on 2-28-11. Cash and cash equivalents are not included in Top 10 Issuers.

²As a percentage of net assets on 2-28-11.

³Sector investing is subject to greater risks than the market as a whole. Because the Fund may focus on particular sectors of the economy, its performance may depend on the performance of those sectors.

⁴Ratings are from Moody’s Investor Services, Inc. If not available, we have used S&P ratings. In the absence of ratings from these agencies, we have used Fitch, Inc. ratings. “Not Rated” securities are those with no ratings available. They may have internal ratings similar to those shown. All are as of 2-28-11 and do not reflect subsequent downgrades, if any.


10	Floating Rate Income Fund \| Semiannual report

Fund’s investments

As of 2-28-11 (unaudited)


		Maturity
	Rate (%)	date	Par value	Value
Term Loans (M) 81.10%			$1,635,913,820

(Cost $1,591,269,266)

Consumer Discretionary 31.54%				636,312,477

Auto Components 1.49%

Allison Transmission, Inc.	3.020	08-07-14	$25,125,728	25,031,506

UCI International, Inc.	5.500	07-26-17	5,000,000	5,017,190

Automobiles 0.25%

Ford Motor Company	3.020	12-16-13	5,105,461	5,103,307

Diversified Consumer Services 1.58%

Cengage Learning, Inc.	2.550	07-03-14	33,041,906	31,794,574

Hotels, Restaurants & Leisure 10.19%

Burger King Corp.	4.500	10-19-16	9,500,000	9,543,539

CCM Merger, Inc.	8.500	07-13-12	19,264,376	19,384,778

CCM Merger, Inc. (T)	—	02-11-17	2,844,839	2,879,512

CityCenter Holdings LLC (T)	—	01-13-15	17,540,778	17,719,834

Denny’s, Inc.	6.500	09-20-16	7,200,000	7,258,320

DineEquity, Inc. (T)	—	10-19-17	18,500,000	18,638,750

Dunkin Brands, Inc.	4.250	11-23-17	15,000,000	15,093,750

Golden Nugget, Inc.	3.270	06-30-14	1,725,726	1,489,876

Harrah’s Operating Company, Inc.	9.500	10-31-16	21,273,659	22,544,165

Harrah’s Operating Company, Inc.	3.303	01-28-15	29,119,753	26,977,384

Las Vegas Sands LLC	3.040	11-23-16	17,259,183	17,175,977

Quiznos Corp.	5.010	05-05-13	18,010,747	17,050,180

Sugarhouse HSP Gaming Prop. Mezz. LP	11.250	09-23-14	9,027,375	9,170,305

VML US Finance LLC	4.790	05-25-12	2,292,777	2,295,629

VML US Finance LLC	4.790	05-27-13	5,934,425	5,941,807

Wynn Las Vegas LLC	3.270	08-17-15	12,500,000	12,427,088

Leisure Equipment & Products 1.00%

Amscan Holdings, Inc.	6.750	12-04-17	19,950,000	20,134,338

Media 12.80%

Acosta, Inc. (T)	—	02-15-18	7,500,000	7,556,250

Advantage Sales & Marketing LLC	5.250	12-18-17	5,500,000	5,534,337

Affinion Group, Inc.	5.000	10-09-16	5,000,000	5,025,000

AMC Entertainment Holdings, Inc.	3.510	12-16-16	13,000,000	13,077,194

Carmike Cinemas, Inc.	5.500	01-27-16	12,198,571	12,310,395

Charter Communications Operating LLC	3.560	09-06-16	30,189,254	30,260,017

Charter Communications Operating LLC	2.270	03-06-14	2,440,273	2,460,405


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	11


		Maturity
	Rate (%)	date	Par value	Value
Media (continued)

Citadel Broadcasting Corp.	4.250	12-30-16	$6,930,000	$6,951,656

Dex Media West, Inc.	7.000	10-24-14	10,699,117	9,801,150

Getty Images, Inc.	5.250	11-07-16	7,980,000	8,077,260

Insight Midwest Holdings LLC	2.024	04-07-14	2,068,519	2,060,089

Newsday LLC	10.500	08-01-13	10,000,000	10,631,250

Nielsen Finance LLC	3.764	05-02-16	14,536,565	14,575,930

Regal Cinemas Corp. (T)	—	08-23-17	15,000,000	15,075,000

Sinclair Television Group, Inc.	5.500	10-29-15	11,904,620	12,033,583

Tribune Company (H)	3.230	06-07-11	2,462,857	1,728,106

Tribune Company (H)	3.460	06-04-14	10,000,000	7,142,860

Univision Communications, Inc.	4.512	03-31-17	36,699,189	35,797,012

UPC Broadband Holding BV	2.010	12-31-14	3,565,583	3,538,841

Visant Corp.	7.000	12-22-16	54,190,625	54,675,631

Multiline Retail 2.29%

Michaels Stores, Inc.	4.834	07-31-16	24,317,193	24,514,770

Savers, Inc.	5.750	03-11-16	2,481,250	2,493,656

The Neiman Marcus Group, Inc.	4.303	04-06-16	19,135,439	19,223,041

Specialty Retail 1.94%

Bass Pro Group LLC	5.006	04-09-15	6,942,563	6,979,449

General Nutrition Centers, Inc.	3.296	09-16-13	5,868,534	5,839,191

Gymboree Corp.	5.000	02-23-18	26,200,000	26,278,595

Consumer Staples 5.19%				104,655,494

Food Products 2.98%

Bolthouse Farms, Inc.	7.500	08-11-16	17,500,000	17,718,750

Bolthouse Farms, Inc.	5.501	02-11-16	2,937,370	2,955,728

Brickman Group Holdings, Inc.	7.250	10-14-16	6,500,000	6,635,415

Del Monte Corp. (T)	—	02-26-18	25,000,000	25,156,250

Dole Food Company, Inc.	5.059	03-02-17	2,193,953	2,208,433

Dole Food Company, Inc.	5.039	03-02-17	5,449,231	5,485,196

Household Products 1.77%

Reynolds Group Holdings, Inc.	4.250	02-09-18	27,000,000	27,140,616

Spectrum Brands, Inc.	5.013	06-17-16	8,434,953	8,515,786

Personal Products 0.44%

NBTY, Inc.	6.250	10-02-17	8,750,000	8,839,320

Energy 0.60%				12,101,470

Energy Equipment & Services 0.46%

Cie Generale de Geophysique-Veritas	4.500	01-12-14	1,065,222	1,058,565

Hercules Offshore, Inc.	6.000	07-11-13	8,227,563	8,164,145

Oil, Gas & Consumable Fuels 0.14%

SemGroup Corp.	0.572	11-30-12	2,866,814	2,878,760

Financials 3.92%				78,959,415

Capital Markets 0.60%

Pinafore LLC	4.250	09-29-15	4,933,107	4,933,107

Pinafore LLC	4.250	09-26-16	7,029,678	7,056,039


12	Floating Rate Income Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Diversified Financial Services 1.42%

BLB Management Services, Inc. (T)	—	11-05-15	$6,004,660	$6,039,685

Fifth Third Processing Solutions	5.500	11-03-16	16,000,000	16,124,000

International Lease Finance Corp.	6.750	03-17-15	6,409,615	6,449,675

Insurance 0.85%

Asurion Corp.	6.750	03-31-15	5,000,000	5,063,395

Asurion Corp.	3.271	07-03-14	8,421,237	8,283,079

First American Corp.	4.750	04-12-16	3,731,250	3,754,570

Real Estate Management & Development 1.05%

Realogy Corp.	4.562	10-10-16	20,267,348	19,442,183

Realogy Corp.	3.260	10-10-16	1,890,658	1,813,682

Health Care 14.20%				286,498,420

Biotechnology - 0.95%

Grifols SA (T)	—	11-23-16	19,000,000	19,221,673

Health Care Equipment & Supplies 1.64%

Bausch & Lomb, Inc.	3.543	04-24-15	11,710,771	11,630,259

Bausch & Lomb, Inc.	3.512	04-24-15	16,364,886	16,385,342

ConvaTec, Ltd.	5.750	12-22-16	5,000,000	5,022,915

Health Care Providers & Services 9.50%

Alliance Healthcare Services, Inc.	5.500	06-01-16	4,950,000	4,974,750

Cardinal Health, Inc.	2.512	04-10-14	10,382,281	10,252,502

Community Health Systems, Inc.	3.810	01-25-17	15,323,984	15,357,405

Community Health Systems, Inc.	2.560	07-25-14	28,432,461	28,201,448

CRC Health Corp.	4.803	11-16-15	22,168,928	22,113,506

Hanger Orthopedic Group, Inc.	5.250	11-17-16	8,400,000	8,494,500

HCA, Inc.	2.553	11-18-13	18,207,967	18,147,280

Health Management Associates, Inc.	2.053	02-28-14	4,377,000	4,342,956

IASIS Healthcare LLC	2.266	03-14-14	477,216	474,979

IASIS Healthcare LLC	2.262	03-14-14	9,725,664	9,680,079

Manor Care, Inc.	2.762	12-22-14	4,920,010	4,901,511

MultiPlan, Inc.	4.750	07-16-17	19,962,132	20,055,715

National Mentor Holdings, Inc.	7.000	01-18-17	14,000,000	13,784,162

Renal Advantage Holdings, Inc.	5.750	12-16-16	3,000,000	3,041,250

Universal Health Services, Inc.	5.500	11-15-16	16,000,000	16,140,000

Vanguard Health Holding Company I LLC	5.000	01-29-16	11,562,843	11,638,002

Health Care Technology 0.91%

MedAssets, Inc.	5.250	11-16-16	18,200,000	18,336,500

Pharmaceuticals 1.20%

Warner Chilcott Company LLC	6.500	02-22-16	2,489,804	2,508,089

Warner Chilcott Company LLC	6.250	04-30-15	14,090,452	14,174,468

Warner Chilcott Company LLC	6.000	10-30-14	7,615,954	7,619,129

Industrials 7.89%				159,159,739

Aerospace & Defense 2.38%

DAE Aviation Holdings, Inc.	5.310	07-31-14	16,450,066	16,573,442

Delos Aircraft, Inc.	7.000	03-17-16	22,700,385	22,894,950


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	13


		Maturity
	Rate (%)	date	Par value	Value
Aerospace & Defense (continued)

Hawker Beechcraft Acquisition Company LLC	2.303	03-26-14	$434,187	$387,987

Hawker Beechcraft Acquisition Company LLC	2.273	03-26-14	5,243,689	4,685,729

Transdigm, Inc.	5.250	02-14-17	3,500,000	3,519,250

Airlines 0.55%

Delta Air Lines, Inc.	8.750	09-27-13	9,137,757	9,170,388

Delta Air Lines, Inc.	2.254	04-30-12	2,075,698	2,060,130

Building Products 1.05%

Goodman Global, Inc.	5.750	10-28-16	20,967,425	21,121,410

Commercial Services & Supplies 2.25%

Affinion Group, Inc.	5.000	10-10-16	4,950,031	4,974,782

ARAMARK Corp.	3.553	07-26-16	8,766,291	8,788,207

ARAMARK Corp.	3.511	07-26-16	576,513	577,954

ARAMARK Corp.	2.178	01-27-14	1,171,857	1,170,027

ARAMARK Corp.	2.136	01-27-14	64,096	63,996

Brand Energy Services	2.563	02-07-14	2,503,880	2,452,758

Language Line LLC	6.250	06-20-16	8,000,000	8,095,000

U.S. Investigations Services, Inc.	7.750	02-21-15	5,970,000	6,089,400

U.S. Investigations Services, Inc.	3.054	02-21-15	13,296,906	13,163,937

Machinery 0.59%

Intelligrated, Inc.	7.500	02-16-17	12,000,000	11,880,000

Marine 0.04%

Trico Shipping AS	13.500	09-21-11	763,841	763,841

Professional Services 1.03%

Fenwal, Inc.	2.544	02-28-14	22,049,523	20,726,551

Information Technology 6.22%				125,439,984

Communications Equipment 0.15%

CommScope, Inc.	5.000	01-14-18	3,000,000	3,043,749

IT Services 0.61%

Fidelity National Information Services, Inc.	5.250	07-18-16	8,948,163	9,024,517

Global Cash Access Holdings, Inc. (T)	—	02-17-16	3,250,000	3,274,375

Semiconductors & Semiconductor Equipment 2.01%

Freescale Semiconductor, Inc.	4.510	12-01-16	38,586,797	38,510,742

Sensata Technologies	2.054	04-26-13	1,962,205	1,956,687

Software 3.45%

Aspect Software, Inc.	6.250	04-19-16	7,940,000	7,979,700

Dealer Computer Services, Inc.	5.250	04-21-17	10,434,066	10,494,062

First Data Corp.	3.012	09-24-14	40,302,578	38,159,206

SunGard Data Systems, Inc.	3.933	02-26-16	12,971,470	12,996,946

Materials 3.01%				60,763,263

Chemicals 0.30%

Nalco Company	4.500	10-05-17	5,985,000	6,037,369

Containers & Packaging 1.22%

Berry Plastics Corp.	2.314	04-03-15	12,551,593	12,201,190

Graham Packaging Company LP	6.750	04-05-14	8,489,524	8,542,584

Graham Packaging Company LP	6.000	09-23-16	1,995,000	2,010,320

Graphic Packaging International Corp.	2.303	05-16-14	1,917,389	1,912,862


14	Floating Rate Income Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Metals & Mining 1.48%

Fairmount Minerals, Ltd.	6.253	08-05-16	$13,312,075	$13,456,285

Global Brass and Copper, Inc.	10.251	07-29-15	7,979,048	8,298,210

Novelis, Inc.	5.250	12-19-16	8,000,000	8,094,288

Paper & Forest Products 0.01%

Georgia-Pacific Corp.	2.302	12-21-12	210,107	210,155

Telecommunication Services 3.82%				77,127,775

Diversified Telecommunication Services 3.38%

FairPoint Communications, Inc.	6.500	01-22-16	15,000,000	14,802,090

Intelsat Jackson Holdings SA	5.250	04-02-18	31,000,000	31,208,289

Level 3 Financing, Inc.	11.500	03-13-14	4,000,000	4,290,000

Level 3 Financing, Inc.	2.553	03-13-14	13,000,000	12,675,000

Telesat Canada	3.270	10-31-14	5,337,193	5,327,187

Wireless Telecommunication Services 0.44%

MetroPCS Wireless, Inc.	3.813	11-04-16	6,687,364	6,713,833

MetroPCS Wireless, Inc.	2.563	11-04-13	90,818	90,542

Syniverse Technologies, Inc.	5.250	12-21-17	2,000,000	2,020,834

Utilities 4.71%				94,895,783

Electric Utilities 2.95%

EquiPower Resources Corp.	5.750	01-26-18	7,000,000	7,052,500

Texas Competitive Electric Holdings
Company LLC	3.787	10-10-14	18,428,090	15,530,273

Texas Competitive Electric Holdings
Company LLC	3.766	10-10-14	43,890,314	36,900,782

Independent Power Producers & Energy Traders 1.76%

GenOn Energy, Inc.	6.000	09-08-17	11,221,875	11,352,801

New Development Holdings, Inc.	7.000	07-03-17	11,376,775	11,483,432

NRG Energy, Inc.	3.553	08-31-15	10,841,515	10,909,275

NRG Energy, Inc.	2.053	02-01-13	1,103	1,098

NRG Energy, Inc.	2.039	02-01-13	1,672,792	1,665,622

Corporate Bonds 9.70%				$195,749,890

(Cost $181,588,403)

Consumer Discretionary 0.96%				19,422,082

Hotels, Restaurants & Leisure 0.08%

Caesars Entertainment Operating
Company, Inc.	11.250	06-01-17	$1,500,000	1,702,500

Media 0.83%

CCO Holdings LLC/CCO Holdings Capital Corp.	8.125	04-30-20	2,300,000	2,481,125

CCO Holdings LLC/CCO Holdings Capital Corp.	7.875	04-30-18	2,970,000	3,170,475

CCO Holdings LLC/CCO Holdings Capital Corp.	7.000	01-15-19	6,000,000	6,105,000

Univision Communications, Inc. (S)	7.875	11-01-20	4,720,000	5,062,200

Multiline Retail 0.05%

The Neiman Marcus Group, Inc., PIK	9.000	10-15-15	859,935	900,782

Consumer Staples 0.05%				1,011,850

Tobacco 0.05%

Alliance One International, Inc.	10.000	07-15-16	980,000	1,011,850


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	15


		Maturity
	Rate (%)	date	Par value	Value
Energy 1.03%				$20,814,018

Energy Equipment & Services 0.30%

Hercules Offshore, Inc. (S)	10.500	10-15-17	$6,151,000	6,104,868

Oil, Gas & Consumable Fuels 0.73%

Murray Energy Corp. (S)	10.250	10-15-15	8,580,000	9,159,150

SandRidge Energy, Inc. (S)	9.875	05-15-16	5,000,000	5,550,000

Financials 1.53%				30,892,256

Consumer Finance 0.59%

SLM Corp.	8.000	03-25-20	11,210,000	11,896,613

Diversified Financial Services 0.59%

Citigroup, Inc.	6.375	08-12-14	7,500,000	8,368,268

International Lease Finance Corp. (S)	7.125	09-01-18	3,300,000	3,601,125

Real Estate Management & Development 0.35%

Realogy Corp. (S)	7.875	02-15-19	7,000,000	7,026,250

Industrials 1.57%				31,723,642

Airlines 0.45%

Continental Airlines, Inc.	9.250	05-10-17	2,374,652	2,517,132

Continental Airlines, Inc.	6.900	01-02-18	1,053,027	1,121,474

Continental Airlines, Inc.	6.545	02-02-19	304,417	321,160

Continental Airlines, Inc.	6.503	06-15-11	1,030,000	1,040,300

United Air Lines, Inc.	9.750	01-15-17	3,534,522	4,073,536

Electrical Equipment 0.62%

NXP BV/NXP Funding LLC (P)	3.053	10-15-13	12,655,000	12,591,725

Road & Rail 0.50%

RailAmerica, Inc.	9.250	07-01-17	9,082,000	10,058,315

Information Technology 0.29%				5,878,800

Software 0.29%

Aspect Software, Inc. (S)	10.625	05-15-17	5,520,000	5,878,800

Materials 2.22%				44,761,987

Chemicals 1.04%

Georgia Gulf Corp. (S)	9.000	01-15-17	5,000,000	5,562,500

Lyondell Chemical Company	11.000	05-01-18	7,730,049	8,870,231

Lyondell Chemical Company (S)	8.000	11-01-17	5,850,000	6,584,906

Containers & Packaging 0.16%

Ardagh Packaging Finance PLC (S)	7.375	10-15-17	3,000,000	3,195,000

Metals & Mining 0.36%

Midwest Vanadium Pty, Ltd. (S)	11.500	02-15-18	7,000,000	7,210,000

Paper & Forest Products 0.66%

Appleton Papers, Inc. (S)	10.500	06-15-15	5,660,000	5,858,100

NewPage Corp.	11.375	12-31-14	7,500,000	7,481,250

Telecommunication Services 0.77%				15,430,625

Diversified Telecommunication Services 0.42%

Wind Acquisition Finance SA (S)	7.250	02-15-18	8,250,000	8,518,125

Wireless Telecommunication Services 0.35%

iPCS, Inc. (P)	2.429	05-01-13	7,000,000	6,912,500


16	Floating Rate Income Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Utilities 1.28%				$25,814,630

Independent Power Producers & Energy Traders 1.28%

Calpine Construction Finance Company LP (S)	8.000	06-01-16	$7,000,000	7,595,000

Calpine Corp. (S)	7.875	07-31-20	3,000,000	3,172,500

Calpine Corp. (S)	7.500	02-15-21	6,000,000	6,135,000

Calpine Corp. (S)	7.250	10-15-17	8,508,000	8,912,130

			Shares	Value


Common Stocks 1.92%		$38,700,157

(Cost $17,773,402)

Consumer Discretionary 0.72%		14,576,450

Hotels, Restaurants & Leisure 0.06%

Tropicana Entertainment, Inc. (I)	72,338	1,220,704

Media 0.66%

Citadel Broadcasting Corp., Class A (I)	53,412	1,856,067

Citadel Broadcasting Corp., Class B (I)	330,926	11,499,679

Energy 0.14%		2,884,018

Oil, Gas & Consumable Fuels 0.14%

Express Energy Services LLC (I)	117,715	2,884,018

Industrials 0.01%		111,250

Building Products 0.01%

Nortek, Inc. (I)	2,500	111,250

Materials 1.05%		21,128,439

Chemicals 1.05%

Georgia Gulf Corp. (I)	74,111	2,365,623

LyondellBasell Industries, Class A (I)	492,721	18,762,816

Preferred Securities 0.39%		$7,936,775

(Cost $7,460,535)

Financials 0.39%		7,936,775

Diversified Financial Services 0.39%

Citigroup Capital XII (8.500% to 03-30-15, then 3 month LIBOR + 5.870%)	298,375	7,936,775

	Par value	Value

Short-Term Investments 15.54%		$313,469,994

(Cost $313,469,994)

Repurchase Agreement 15.54%		$313,469,994
Bank of America Tri-Party Repurchase Agreement dated 2-28-11 at
0.150% to be repurchased at $136,229,568 on 3-1-11, collateralized
by $132,242,000 U.S. Treasury Notes, 3.375% due 11-15-19 (valued at
$51,777,344, including interest) and U.S. Treasury Notes, 4.875% due
6-30-12 (valued at $87,176,653, including interest)	$136,229,000	136,229,000

Deutsche Bank Tri-Party Repurchase Agreement dated 2-28-11 at
0.160% to be repurchased at $84,708,376 on 3-1-11,
collateralized by $89,330,000 Federal Home Loan Mortgage Corp.,
3.500% due 8-17-20 (valued at $86,402,156, including interest)	84,708,000	84,708,000


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	17


	Par value	Value
Repurchase Agreement (continued)
Goldman Sachs Tri-Party Repurchase Agreement dated 2-28-11 at
0.180% to be repurchased at $91,963,460 on 3-1-11, collateralized by
$93,945,000 Federal Home Loan Mortgage Corp., 0.850% due 2-8-13
(valued at $93,827,569, including interest)	$91,963,000	$91,963,000

Repurchase Agreement with State Street Corp. dated 2-28-11 at 0.010%
to be repurchased at $569,994 on 3-1-11, collateralized by $575,000
U.S. Treasury Notes, 1.375% due 5-15-13 (valued at $582,504,
including interest)	569,994	569,994

Total investments (Cost $2,111,561,600)† 108.65%	$2,191,770,636


Other assets and liabilities, net (8.65%)		($174,543,014)


Total net assets 100.00%	$2,017,227,622

The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund.

LIBOR London Interbank Offered Rate

PIK Paid in Kind

(H) Non-income producing — Issuer is in default.

(I) Non-income producing security.

(M) Term loans are variable rate obligations. The coupon rate shown represents the rate at period end unless the investment is unsettled.

(P) Variable rate obligation. The coupon rate shown represents the rate at period end.

(T) All or a portion of this position represents unsettled loan commitment. The coupon rate will be determined at time of settlement.

† At 2-28-11, the aggregate cost of investment securities for federal income tax purposes was $2,114,966,497. Net unrealized appreciation aggregated $76,804,139, of which $81,605,429 related to appreciated investment securities and $4,801,290 related to depreciated investment securities.


18	Floating Rate Income Fund \| Semiannual report	See notes to financial statements

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 2-28-11 (unaudited)

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


Assets

Investments, at value (Cost $1,798,091,606)	$1,878,300,642
Repurchase agreements, at value (Cost $313,469,994) (Note 2)	313,469,994

Total investments, at value (Cost $2,111,561,600)	2,191,770,636
Cash	36,384,480
Receivable for investments sold	101,155,823
Receivable for fund shares sold	16,774,724
Interest receivable	9,892,811
Receivable for securities lending income	149
Receivable due from adviser	412
Other receivables and prepaid expenses	93,997

Total assets	2,356,073,032

Liabilities

Payable for investments purchased	336,552,873
Payable for fund shares repurchased	1,379,705
Distributions payable	496,763
Payable to affiliates
Accounting and legal services fees	41,905
Transfer agent fees	188,346
Trustees’ fees	1,919
Other liabilities and accrued expenses	183,899

Total liabilities	338,845,410

Net assets

Capital paid-in	$1,924,420,958
Undistributed net investment income	(3,191,217)
Accumulated net realized gain (loss) on investments and investments	15,788,845
Net unrealized appreciation (depreciation) on investments	80,209,036

Net assets	$2,017,227,622


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	19

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

Statement of assets and liabilities (continued)


Net asset value per share

Based on net asset values and shares outstanding — the Fund has an
unlimited number of shares authorized with no par value
Class A ($481,568,254 ÷ 49,940,727 shares)	$9.64
Class B ($15,677,587 ÷ 1,625,887 shares)¹	$9.64
Class C ($164,514,587 ÷ 16,995,790 shares)¹	$9.68
Class I ($188,430,504 ÷ 19,552,875 shares)	$9.64
Class 1 ($121,330 ÷ 12,603 shares)	$9.63
Class NAV ($1,166,915,360 ÷ 121,064,557 shares)	$9.64

Maximum offering price per share

Class A (net asset value per share ÷ 97%)²	$9.94

¹Redemption price is equal to net asset value less any applicable contingent deferred sales charge.

²On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced.


20	Floating Rate Income Fund \| Semiannual report	See notes to financial statements

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

Statement of operations For the six-month period ended 2-28-11 (unaudited)

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


Investment income

Interest	$53,042,454
Dividends	317,023
Securities lending	1,392

Total investment income	53,360,869

Expenses

Investment management fees (Note 4)	5,830,012
Distribution and service fees (Note 4)	1,128,091
Accounting and legal services fees (Note 4)	121,821
Transfer agent fees (Note 4)	440,978
Trustees’ fees (Note 4)	7,880
State registration fees (Note 4)	53,258
Printing and postage (Note 4)	16,346
Professional fees	36,015
Custodian fees	104,048
Registration and filing fees	17,665
Other	9,314

Total expenses	7,765,428
Less expense reductions (Note 4)	(62,049)

Net expenses	7,703,379

Net investment income	45,657,490

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments in unaffiliated issuers	36,782,693
Investments in affiliated issuers	(886)
	36,781,807
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers	51,967,708
Investments in affiliated issuers	(65)
	51,967,643

Net realized and unrealized gain	88,749,450

Increase in net assets from operations	$134,406,940


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	21

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

Statements of changes in net assets

These Statements of Changes in Net Assets show how the value of the Fund’s net assets has changed during the last two periods. The difference reflects earnings less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Fund share transactions.


	Six months
	ended	Year
	2-28-11	ended
	(unaudited)	8-31-10


Increase (decrease) in net assets

From operations
Net investment income	$45,657,490	$85,484,540
Net realized gain	36,781,807	45,380,345
Change in net unrealized appreciation (depreciation)	51,967,643	(9,389,879)

Increase in net assets resulting from operations	134,406,940	121,475,006

Distributions to shareholders
From net investment income
Class A	(9,508,274)	(10,427,556)
Class B	(274,651)	(274,644)
Class C	(2,870,117)	(2,665,145)
Class I	(3,332,837)	(4,335,325)
Class 1	(3,579)	(6,792)
Class NAV	(34,860,569)	(69,768,491)
From net realized gain
Class A	(9,189,596)	—
Class B	(301,900)	—
Class C	(3,109,546)	—
Class I	(2,717,408)	—
Class 1	(3,165)	—
Class NAV	(30,510,487)	—
Total distributions	(96,682,129)	(87,477,953)

From Fund share transactions (Note 6)	403,677,792	403,913,148

Total increase	441,402,603	437,910,201

Net assets

Beginning of period	1,575,825,019	1,137,914,818

End of period	$2,017,227,622	$1,575,825,019

Undistributed net investment income	($3,191,217)	$2,001,320


22	Floating Rate Income Fund \| Semiannual report	See notes to financial statements

Financial highlights

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


CLASS A SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08²

Per share operating performance

Net asset value, beginning of period	$9.43	$9.13	$9.79	$10.00
Net investment income³	0.25	0.52	0.56	0.37
Net realized and unrealized gain (loss) on investments	0.50	0.33	(0.66)	(0.25)
Total from investment operations	0.75	0.85	(0.10)	0.12
Less distributions
From net investment income	(0.28)	(0.55)	(0.56)	(0.33)
From net realized gain	(0.26)	—	—⁴	—
Total distributions	(0.54)	(0.55)	(0.56)	(0.33)
Net asset value, end of period	$9.64	$9.43	$9.13	$9.79
Total return (%)^5,6	8.08⁷	9.47	(0.07)	1.23⁷

Ratios and supplemental data

Net assets, end of period (in millions)	$482	$267	$110	$11
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	1.23⁸	1.20	1.23	1.52⁸
Expenses including reductions and amounts recaptured	1.20⁸	1.20⁹	1.20	1.18⁸
Net investment income	5.21⁸	5.58	6.16	5.70⁸
Portfolio turnover (%)	44	57	36	11

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.

²The inception date for Class A shares is 1-2-08.

³Based on the average daily shares outstanding.

⁴Less than ($0.005) per share.

⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.

⁶Does not reflect the effect of sales charges, if any.

⁷Not annualized.

⁸Annualized.

⁹Includes the impact of expense recapture which amounted to 0.01% of average net assets. See Note 4.


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	23


CLASS B SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08²

Per share operating performance

Net asset value, beginning of period	$9.42	$9.13	$9.79	$10.00
Net investment income³	0.21	0.45	0.49	0.31
Net realized and unrealized gain (loss) on investments	0.51	0.32	(0.65)	(0.24)
Total from investment operations	0.72	0.77	(0.16)	0.07
Less distributions
From net investment income	(0.24)	(0.48)	(0.50)	(0.28)
From net realized gain	(0.26)	—	—⁴	—
Total distributions	(0.50)	(0.48)	(0.50)	(0.28)
Net asset value, end of period	$9.64	$9.42	$9.13	$9.79
Total return (%)^5,6	7.79⁷	8.52	(0.80)	0.76⁷

Ratios and supplemental data

Net assets, end of period (in millions)	$16	$9	$3	$1
Ratios (as a percentage of average net assets):
Expense before reductions and amounts recaptured	2.07⁸	2.08	3.86	4.76⁸
Expenses including reductions and amounts recaptured	1.95⁸	1.95⁹	1.95	1.93⁸
Net investment income	4.43⁸	4.77	5.53	4.78⁸
Portfolio turnover (%)	44	57	36	11

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class B shares is 1-2-08.
³Based on the average daily shares outstanding.
⁴Less than ($0.005) per share.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Does not reflect the effect of sales charges, if any.
⁷Not annualized.
⁸Annualized.
⁹Includes the impact of expense recapture which amounted to less than 0.005% of average net assets. See Note 4.


CLASS C SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08²

Per share operating performance

Net asset value, beginning of period	$9.46	$9.16	$9.80	$10.00
Net investment income³	0.21	0.45	0.47	0.32
Net realized and unrealized gain (loss) on investments	0.51	0.33	(0.62)	(0.24)
Total from investment operations	0.72	0.78	(0.15)	0.08
Less distributions
From net investment income	(0.24)	(0.48)	(0.49)	(0.28)
From net realized gain	(0.26)	—	—⁴	—
Total distributions	(0.50)	(0.48)	(0.49)	(0.28)
Net asset value, end of period	$9.68	$9.46	$9.16	$9.80
Total return (%)^5,6	7.78⁷	8.65	(0.69)	0.81⁷

Ratios and supplemental data

Net assets, end of period (in millions)	$165	$95	$23	$2
Ratios (as a percentage of average net assets):
Expenses before reductions	1.93⁸	1.91	2.09	2.32⁸
Expenses net of fee waivers and credits	1.93⁸	1.93⁹	1.95	1.95⁸
Net investment income	4.46⁸	4.77	5.39	4.96⁸
Portfolio turnover (%)	44	57	36	11

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class C shares is 1-2-08.
³Based on the average daily shares outstanding.
⁴Less than ($0.005) per share.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Does not reflect the effect of sales charges, if any.
⁷Not annualized.
⁸Annualized.
⁹Includes the impact of expense recapture which amounted to 0.02% of average net assets. See Note 4.


24	Floating Rate Income Fund \| Semiannual report	See notes to financial statements


CLASS I SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08²

Per share operating performance

Net asset value, beginning of period	$9.42	$9.12	$9.79	$10.00
Net investment income³	0.27	0.56	0.60	0.37
Net realized and unrealized gain (loss) on investments	0.51	0.32	(0.68)	(0.22)
Total from investment operations	0.78	0.88	(0.08)	0.15
Less distributions
From net investment income	(0.30)	(0.58)	(0.59)	(0.36)
From net realized gain	(0.26)	—	—⁴	—
Total distributions	(0.56)	(0.58)	(0.59)	(0.36)
Net asset value, end of period	$9.64	$9.42	$9.12	$9.79
Total return (%)^5,6	8.41⁷	9.88	0.25	1.52⁷

Ratios and supplemental data

Net assets, end of period (in millions)	$188	$86	$40	$1
Ratios (as a percentage of average net assets):
Expenses before reductions	0.79⁸	0.81	0.95	4.48⁸
Expenses net of fee waivers and credits	0.79⁸	0.82⁹	0.85	0.82⁸
Net investment income	5.73⁸	5.94	6.36	5.78⁸
Portfolio turnover (%)	44	57	36	11

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class I shares is 1-2-08.
³Based on the average daily shares outstanding.
⁴Less than ($0.005) per share.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Assumes dividend reinvestment (if applicable).
⁷Not annualized.
⁸Annualized.
⁹Includes the impact of expense recapture which amounted to 0.01% of average net assets. See Note 4.


CLASS 1 SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08²

Per share operating performance

Net asset value, beginning of period	$9.41	$9.12	$9.78	$10.00
Net investment income³	0.26	0.57	0.59	0.38
Net realized and unrealized gain (loss) on investments	0.52	0.31	(0.65)	(0.23)
Total from investment operations	0.78	0.88	(0.06)	(0.15)
Less distributions
From net investment income	(0.30)	(0.59)	(0.60)	(0.37)
From net realized gain	(0.26)	—	—⁴	—
Total distributions	(0.56)	(0.59)	(0.60)	(0.37)
Net asset value, end of period	$9.63	$9.41	$9.12	$9.78
Total return (%)⁵	8.43^6,7	9.82⁷	0.40	1.48⁶

Ratios and supplemental data

Net assets, end of period (in thousands)	$121	$112	$102	$102
Ratios (as a percentage of average net assets):
Expenses before reductions	0.77⁸	0.78	0.80	0.78⁸
Expenses net of all fee waivers and credits	0.77⁸	0.78	0.80	0.78⁸
Net investment income	5.50⁸	6.11	7.13	5.83⁸
Portfolio turnover (%)	44	57	36	11

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class I shares is 1-2-08.
³Based on the average daily shares outstanding.
⁴Less than ($0.005) per share.
⁵Assumes dividend reinvestment (if applicable).
⁶Not annualized.
⁷Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁸Annualized.


See notes to financial statements	Semiannual report \| Floating Rate Income Fund	25


CLASS NAV SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08²

Per share operating performance

Net asset value, beginning of period	$9.42	$9.12	$9.79	$10.00
Net investment income³	0.26	0.58	0.60	0.40
Net realized and unrealized gain (loss) on investments	0.52	0.31	(0.67)	(0.24)
Total from investment operations	0.78	0.89	(0.07)	0.16
Less distributions
From net investment income	(0.30)	(0.59)	(0.60)	(0.37)
From net realized gain	(0.26)	—	—⁴	—
Total distributions	(0.56)	(0.59)	(0.60)	(0.37)
Net asset value, end of period	$9.64	$9.42	$9.12	$9.79
Total return (%)	8.45^5,6	9.99⁶	0.31	1.59⁵

Ratios and supplemental data

Net assets, end of period (in millions)	$1,167	$1,119	$962	$510
Ratios (as a percentage of average net assets):
Expenses before reductions	0.72⁷	0.73	0.75	0.75⁷
Expenses net of fee waivers and credits	0.72⁷	0.73	0.75	0.75⁷
Net investment income	5.54⁷	6.16	7.08	6.16⁷
Portfolio turnover (%)	44	57	36	11

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class NAV shares is 1-2-08.
³Based on the average daily shares outstanding.
⁴Less than $0.005 per share.
⁵Not annualized.
⁶Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁷Annualized.


26	Floating Rate Income Fund \| Semiannual report	See notes to financial statements

Notes to financial statements

(unaudited)

Note 1 — Organization

John Hancock Floating Rate Income Fund (the Fund) is a non-diversified series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the Fund is to seek a high level of current income.

The Fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of Assets and Liabilities. Class A, Class B and Class C shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class 1 shares are offered only to certain affiliates of Manulife Financial Corporation (MFC). Class NAV shares are offered to the John Hancock Lifestyle and Lifecycle Funds, and other affiliated John Hancock funds. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, transfer agent fees, printing and postage and state registration fees for each class may differ. Class B shares convert to Class A shares eight years after purchase.

Note 2 — Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. The Fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.


	Semiannual report \| Floating Rate Income Fund	27

The following is a summary of the values by input classification of the Fund’s investments as of February 28, 2011, by major security category or type:


				LEVEL 3
			LEVEL 2	SIGNIFICANT
	TOTAL MARKET	LEVEL 1	SIGNIFICANT	UNOBSERVABLE
	VALUE AT 2-28-11	QUOTED PRICE	OBSERVABLE INPUTS	INPUTS

Term Loans
Consumer Discretionary	$636,312,477	—	$636,312,477	—
Consumer Staples	104,655,494	—	104,655,494	—
Energy	12,101,470	—	12,101,470	—
Financials	78,959,415	—	78,959,415	—
Health Care	286,498,420	—	286,498,420	—
Industrials	159,159,739	—	159,159,739	—
Information Technology	125,439,984	—	125,439,984	—
Materials	60,763,263	—	60,763,263	—
Telecommunication
Services	77,127,775	—	77,127,775	—
Utilities	94,895,783	—	94,895,783	—
Corporate Bonds
Consumer Discretionary	19,422,082	—	19,422,082	—
Consumer Staples	1,011,850	—	1,011,850	—
Energy	20,814,018	—	20,814,018	—
Financials	30,892,256	—	30,892,256	—
Industrials	31,723,642	—	31,723,642	—
Information Technology	5,878,800	—	5,878,800	—
Materials	44,761,987	—	44,761,987	—
Telecommunication
Services	15,430,625	—	15,430,625	—
Utilities	25,814,630	—	25,814,630	—
Common Stocks
Consumer Discretionary	14,576,450	—	14,576,450	—
Energy	2,884,018	—	2,884,018	—
Industrials	111,250	$111,250	—	—
Materials	21,128,439	21,128,439	—	—
Preferred Securities
Financials	7,936,775	7,936,775	—	—
Short-Term Investments
Repurchase Agreement	313,469,994	—	313,469,994	—

Total Investments in
Securities	$2,191,770,636	$29,176,464	$2,162,594,172	—

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the six months ended February 28, 2011, there were no significant transfers in or out of Level 1 or Level 2 assets.

In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, taking into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Investments in open-end mutual funds, including John Hancock Collateral Investment Trust (JHCIT), are valued at their


28	Floating Rate Income Fund \| Semiannual report

closing net asset values each day. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain 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. Certain short-term securities are valued at amortized cost.

Repurchase agreements. The Fund may enter into repurchase agreements. When a Fund enters into a repurchase agreement, it receives collateral which is held in a segregated account by the Fund’s custodian. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline. Collateral for certain tri-party repurchase agreements is held at a third-party custodian bank in a segregated account for the benefit of the Fund.

Term loans (Floating rate loans). The Fund may invest in term loans, which often include debt securities that are rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual restrictions on resale. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During periods of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.

A Fund’s ability to receive payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. A Fund’s failure to receive scheduled payments on a term loan due to a default, bankruptcy or other reason, would adversely affect the Fund’s income and would likely reduce the value of its assets. Because many term loans are not rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively on the subadviser’s credit analysis of the borrower and/or term loan agents. A Fund may have limited rights to enforce the terms of an underlying loan.

Security transactions and related investment income. Investment security 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. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income is recorded when the Fund becomes aware of the dividends. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful.


	Semiannual report \| Floating Rate Income Fund	29

securities or if collateral investments decline in value. The Fund may receive compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Income received from JHCIT is a component of securities lending income as recorded on the Statement of Operations.

Line of credit. The Fund may borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the custodian agreement, the custodian may loan money to a Fund to make properly authorized payments. The Fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian has a lien, security interest or security entitlement in any Fund property that is not segregated, to the maximum extent permitted by law for any overdraft.

In addition, the Fund and other affiliated funds have entered into an agreement with State Street Bank and Trust Company (SSBT) which enables them to participate in a $200 million unsecured committed line of credit. Prior to March 31, 2010, the amount of the line of credit was $300 million. A commitment fee, 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 pro rata basis and is reflected in other expenses on the Statement of Operations. For the six months ended February 28, 2011, the Fund had no borrowings under the line of credit.

Effective March 30, 2011, the line of credit with SSBT expired, and a similar arrangement was established with Citibank N.A.

Expenses. The majority of expenses are directly attributable to an individual fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund’s relative assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net asset value of the class. Class-specific expenses, such as distribution and service fees, if any, transfer agent fees, state registration fees and printing and postage, for all classes, are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rates applicable to each class.

Federal income taxes. The Fund intends to continue to qualify 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.

As of August 31, 2010, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Fund’s federal tax return is subject to examination by the Internal Revenue Service for a period of three years.

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The Fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are paid annually.

Distributions paid by the Fund 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.


30	Floating Rate Income Fund \| Semiannual report

Note 3 — Guarantees and indemnifications

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

Note 4 — Fees and transactions with affiliates

John Hancock Investment Management Services, LLC (the Adviser), serves as investment adviser for the Funds. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Funds. The Adviser and the Distributor are indirect wholly owned subsidiaries of Manulife Financial Corporation (MFC).

Management fee. The Fund has an investment management contract with the Adviser under which the Fund pays a daily management fee to the Adviser equivalent, on an annual basis, to the sum of: (a) 0.70% of the first $1,100,000,000 of the Fund’s aggregate daily net assets, (b) 0.675% of the next $900,000,000 and (c) 0.65% of the Fund’s aggregate net assets in excess of $2,000,000,000. Aggregate net assets include the net assets of the Fund and Floating Rate Income Trust, a series of John Hancock Trust. The Adviser has a subadvisory agreement with Western Asset Management Company. The Fund is not responsible for payment of the subadvisory fees.

The investment management fees incurred for the six months ended February 28, 2011 were equivalent to an annual effective rate of 0.69% of the Fund’s average daily net assets.

Expense reimbursements. The Adviser has voluntarily agreed to waive a portion of its management fee if certain expenses of the Fund exceed 0.15% of average net assets. Expenses excluded from this waiver are taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses, and extraordinary expenses not incurred in the ordinary course of the Fund’s business, advisory fees, Rule 12b-1 fees, service fees, transfer agency fees, blue sky fees, printing and postage and fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund. This expense reduction will continue in effect until terminated by the Adviser.

The Adviser has contractually agreed to limit the Fund’s total expenses, excluding interest and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, to 1.20% for Class A, 1.95% for Class B, 1.95% for Class C and 0.85% for Class I shares of the Fund’s average daily net asset value, on an annual basis. Accordingly, these expense reductions amounted to $40,969 and $6,219 for Class A and Class B shares, respectively, for the period ended February 28, 2011. The expense reimbursements and limits will continue in effect until December 31, 2011, and thereafter until terminated by the Adviser on notice to the Trust.

The Adviser has voluntarily agreed to waive a portion of its management fee for certain Funds of the Trust and JHT (the Participating Funds), including Floating Rate Income Fund. The waiver equals, on an annualized basis, 0.01% of that portion of the aggregate net assets of all the Participating Funds that exceeds $85 billion. The amount of the reimbursement is calculated daily and allocated among all the Participating Funds in proportion to the daily net assets of each Fund. Accordingly, the expense reduction related to this agreement was $17,750.


	Semiannual report \| Floating Rate Income Fund	31

Expense recapture. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursements or waivers originally occurred. The table below outlines the amounts recovered during the six months ended February 28, 2011, and the amount of waived or reimbursed expenses subject to potential recovery and the respective expiration dates. Certain reimbursements or waivers are not subject to recapture.


AMOUNTS ELIGIBLE	AMOUNTS ELIGIBLE	AMOUNTS ELIGIBLE	AMOUNT RECOVERED
FOR RECOVERY	FOR RECOVERY	FOR RECOVERY	DURING THE PERIOD
THROUGH 8-1-12	THROUGH 8-1-13	THROUGH 2-1-14	ENDED 2-28-11

$14,199	$7,453	$47,188	$2,889

Accounting and legal services. Pursuant to a service agreement, the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended February 28, 2011 amounted to an annual rate of 0.01% of the Fund’s average daily net assets.

Distribution and service plans. The Fund has a distribution agreement with the Distributor. The Fund has adopted distribution and service plans with respect to Class A, Class B, Class C and Class 1 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the Fund. The Fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the Fund’s shares.


CLASS	12b–1 FEE

Class A	0.30%
Class B	1.00%
Class C	1.00%
Class 1	0.05%

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $482,780 for the six months ended February 28, 2011. Of this amount, $91,694 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $387,650 was paid as sales commissions to broker-dealers and $3,436 was paid as sales commissions to sales personnel of Signator Investors, Inc. (Signator Investors), a broker-dealer affiliate of the Adviser.

Class B and Class C shares are subject to contingent deferred sales charges (CDSC). Class B shares that are redeemed within six years of purchase are subject to 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 1.00% CDSC on the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended February 28, 2011, CDSCs received by the Distributor amounted to $13,693 and $24,709 for Class B and Class C shares, respectively.


32	Floating Rate Income Fund \| Semiannual report

Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain revenues that Signature Services receives in connection with the service it provides to the funds. Signature Services Cost is calculated monthly and allocated, as applicable, to four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets. Additionally, Class 1 and Class NAV shares do not pay transfer agent fees.

Class level expenses. Class level expenses for the six months ended February 28, 2011 were:


	DISTRIBUTION	TRANSFER	STATE	PRINTING AND
CLASS	AND SERVICE FEES	AGENT FEES	REGISTRATION FEES	POSTAGE

Class A	$496,511	$298,741	$22,479	$8,677
Class B	55,005	9,923	8,308	469
Class C	576,546	103,888	12,503	3,366
Class I	—	28,426	9,968	3,834
Class 1	29	—	—	—
Total	$1,128,091	$440,978	$53,258	$16,346

Trustee expenses. The Trust compensates each Trustee who is not an employee of the Adviser or its affiliates. The costs of paying Trustee compensation and expenses are allocated to each Fund based on its average daily net assets.

Note 5 — Fund share transactions

Transactions in Fund shares for the six months ended February 28, 2011 and for the year ended August 31, 2010 were as follows:


	Six months ended 2-28-11		Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	25,522,065	$246,112,122	23,743,723	$225,255,985
Distributions reinvested	1,734,274	16,537,287	966,159	9,120,106
Repurchased	(5,677,616)	(54,664,246)	(8,376,626)	(79,041,571)

Net increase	21,578,723	$207,985,163	16,333,256	$155,334,520

Class B shares

Sold	775,554	$7,471,298	823,756	$7,798,559
Distributions reinvested	43,011	409,781	19,662	185,396
Repurchased	(143,290)	(1,380,944)	(175,670)	(1,656,948)

Net increase	675,275	$6,500,135	667,748	$6,327,007

Class C shares

Sold	7,479,028	$72,305,045	8,204,079	$78,184,629
Distributions reinvested	463,637	4,432,691	203,854	1,930,673
Repurchased	(982,306)	(9,488,296)	(909,045)	(8,586,389)

Net increase	6,960,359	$67,249,440	7,498,888	$71,528,913


	Semiannual report \| Floating Rate Income Fund	33


	Six months ended 2-28-11		Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class I shares

Sold	12,287,669	$117,944,275	10,084,734	$95,565,532
Distributions reinvested	443,071	4,225,604	338,995	3,201,997
Repurchased	(2,262,387)	(21,753,684)	(5,756,424)	(54,676,611)

Net increase	10,468,353	$100,416,195	4,667,305	$44,090,918

Class 1 shares

Distributions reinvested	708	$6,743	722	$6,792

Net increase	708	$6,743	722	$6,792

Class NAV shares

Sold	3,499,425	$33,694,781	17,453,696	$163,858,535
Distributions reinvested	6,858,107	65,371,057	7,405,238	69,762,722
Repurchased	(8,116,840)	(77,545,722)	(11,442,754)	(106,996,259)

Net increase	2,240,692	$21,520,116	13,416,180	$126,624,998

Net increase	41,924,110	$403,677,792	42,584,099	$403,913,148

Affiliates of the Fund owned 100% of shares of beneficial interest of Class 1 and Class NAV on February 28, 2011.

Note 6 — Purchase and sale of securities

Purchases and sales of securities, other than short-term securities, aggregate $1,258,903,294 and $718,938,050, respectively, for the six months ended February 28, 2011.

Note 7 — Investment by affiliated funds

Certain investors in the Fund are affiliated funds and are managed by the Adviser and its affiliates. The affiliated funds do not invest in the Fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the Fund’s net assets. At February 28, 2011, the following funds had an affiliate ownership concentration of 5% or more of the Fund’s net assets:


	AFFILIATE
FUND	CONCENTRATION

Lifestyle Balanced Portfolio	19.4%

Lifestyle Conservative Portfolio	7.2%

Lifestyle Growth Portfolio	16.7%

Lifestyle Moderate Portfolio	8.9%


34	Floating Rate Income Fund \| Semiannual report

More information


Trustees	Investment adviser
James M. Oates, Chairman	John Hancock Investment Management
James R. Boyle†	Services, LLC
Charles L. Bardelis*
Peter S. Burgess*	Subadviser
Grace K. Fey	Western Asset Management Company
Theron S. Hoffman
Hassell H. McClellan	Principal distributor
Steven M. Roberts*	John Hancock Funds, LLC

Officers	Custodian
Hugh McHaffie	State Street Bank and Trust Company
President
	Transfer agent
Thomas M. Kinzler	John Hancock Signature Services, Inc.
Secretary and Chief Legal Officer
	Legal counsel
Francis V. Knox, Jr.	K&L Gates LLP
Chief Compliance Officer

Michael J. Leary	The report is certified under the Sarbanes-Oxley
Treasurer	Act, which requires mutual funds and other public
	companies to affirm that, to the best of their
Charles A. Rizzo	knowledge, the information in their financial reports
Chief Financial Officer	is fairly and accurately stated in all material respects.

John G. Vrysen
Chief Operating Officer

*Member of the Audit Committee
†Non-Independent Trustee

The Fund’s proxy voting policies and procedures, as well as the Fund’s proxy voting record for the most recent twelve-month period ended June 30, are available free of charge on the Securities and Exchange Commission (SEC) Web site at www.sec.gov or on our Web site.

The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form N-Q. The Fund’s Form N-Q is available on our Web site and the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-800-SEC-0330 to receive information on the operation of the SEC’s Public Reference Room.

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site www.jhfunds.com or by calling 1-800-225-5291.


You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 55913	Mutual Fund Image Operations
	Boston, MA 02205-5913	30 Dan Road
		Canton, MA 02021


	Semiannual report \| Floating Rate Income Fund	35

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 Floating Rate Income Fund.	328SA 2/11
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	4/11

A look at performance

For the period ended February 28, 2011


	Average annual total returns (%)				Cumulative total returns (%)
	with maximum sales charge (POP)				with maximum sales charge (POP)

				Since					Since
	1-year	5-year	10-year	inception¹	6-months	1-year	5-year	10-year	inception¹

Class A²	24.15	7.09	—	9.50	31.61	24.15	40.84	—	62.85

Class I^2,3	31.03	8.91	—	11.29	38.81	31.03	53.21	—	77.73

Class 1³	31.30	8.99	—	11.37	38.96	31.30	53.80	—	78.42

Class NAV ³	31.36	9.04	—	11.42	39.00	31.36	54.13	—	78.86

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charges on Class A shares of 5%. Sales charges are not applicable for Class I, Class 1 and Class NAV shares.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The net expenses are as follows: Class A — 1.60% and Class I — 1.30%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.70% and Class I — 1.43%. The net expenses equal the gross expenses and are as follows: Class 1 — 1.11%, Class NAV — 1.06%.

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

¹From 10-15-05.

²10-15-05 is the inception date for the oldest class of shares, Class NAV shares. The inception date for Class A shares and Class I shares is 1-4-10. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A and Class I shares.

³For certain types of investors, as described in the Fund’s Class I, Class 1 and Class NAV share prospectuses.


6	Natural Resources Fund \| Semiannual report


			With
	Period	Without	maximum
	beginning	sales charge	sales charge	Index 1⁴	Index 2⁴	Index 3⁴	Index 4⁴

Class A³	10-15-05	$17,145	$16,285	$16,382	$14,544	$21,417	$10,518

Class I^2,3	10-15-05	17,773	17,773	16,382	14,544	21,417	10,518

Class 1²	10-15-05	17,842	17,842	16,382	14,544	21,417	10,518

Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 5%. Sales charges are not applicable for Class I, Class 1 and Class NAV shares.

60% MSCI World Energy/30% MSCI World Metals & Mining/10% MSCI Paper & Forest Products Combined Index (gross of foreign withholding tax on dividends) — Index 1 — is comprised of 60% MSCI World Energy Index, 30% MSCI World Metals & Mining Index and 10% MSCI World Paper & Forest Products Index.

MSCI World Energy Index (gross of foreign withholding tax on dividends) — Index 2 — consists of all the companies in the Energy sector of the MSCI World Index.

MSCI World Metals & Mining Index (gross of foreign withholding tax on dividends) — Index 3 — consists of all the companies in the Metals & Mining industry of the MSCI World Index.

MSCI World Paper & Forest Products Index (gross of foreign withholding tax on dividends) — Index 4 —consists of all the companies in the Paper & Forest industry of the MSCI World Index.

It is not possible to invest directly in an index. Index figures do not reflect sales charges or foreign currency impact, which would have resulted in different values if they did.

¹NAV represents net asset value.

²For certain types of investors, as described in the Fund’s Class I, Class 1 and Class NAV share prospectuses.

³10-15-05 is the inception date for the oldest class of shares, Class NAV shares. The inception date for Class A shares and Class I shares is 1-4-10. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A and Class I shares.

⁴Since inception returns for the index begin on the month end closest to the actual inception date of the fund.


Semiannual report \| Natural Resources Fund	7

Your expenses

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

Understanding fund expenses

As a shareholder of the Fund, 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 fund expenses.

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

Actual expenses/actual returns


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11¹

Class A	$1,000.00	$1,385.70	$9.46

Class I	1,000.00	1,388.10	7.70

Class 1	1,000.00	1,389.60	6.58

Class NAV	1,000.00	1,390.00	6.28


8	Natural Resources Fund \| Semiannual report

Hypothetical example for comparison purposes


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11¹

Class A	$1,000.00	$1,016.90	$8.00

Class I	1,000.00	1,018.30	6.51

Class 1	1,000.00	1,019.30	5.56

Class NAV	1,000.00	1,019.50	5.31

¹Expenses are equal to the Fund’s annualized expense ratio of 1.60%, 1.30%, 1.11% and 1.06% for Class A, Class I, Class 1 and Class NAV, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).


Semiannual report \| Natural Resources Fund	9

Portfolio summary


Top 10 Holdings¹

BG Group PLC	4.1%	Chesapeake Energy Corp.	3.2%

EOG Resources, Inc.	4.0%	Canadian Natural Resources, Ltd.	3.1%

ENI SpA	3.8%	Suncor Energy, Inc.	3.0%

Anglo American PLC	3.6%	Vedanta Resources PLC	3.0%

Exxon Mobil Corp.	3.3%	BHP Billiton PLC	2.9%



Sector Composition^2,3

Energy	61%	Industrials	1%

Materials	36%	Short-Term Investments & Other	2%


Country Concentration^2,4

United States	39%	Italy	4%

United Kingdom	18%	Russia	3%

Canada	18%	Japan	3%

South Africa	5%	Other Countries	3%

Brazil	5%	Short-Term Investments & Other	2%

¹As a percentage of net assets on 2-28-11. Cash and cash equivalents are not included in the Top 10 Holdings.

²As a percentage of net assets on 2-28-11.

⁴International investing involves special risks, such as political, economic and currency and differences in accounting standards and financial reporting.


10	Natural Resources Fund \| Semiannual report

Fund’s investments

As of 2-28-11 (unaudited)


	Shares	Value

Common Stocks 96.75%		$939,934,687

(Cost $744,407,461)

Energy 61.35%		596,020,468

Energy Equipment & Services 2.20%

Tidewater, Inc.	105,300	6,550,713

Transocean, Ltd. (I)(L)	175,400	14,844,102

Oil, Gas & Consumable Fuels 59.15%

BG Group PLC	1,639,825	40,006,727

BP PLC, SADR	572,127	27,730,996

Bumi Resources Tbk PT	38,525,000	13,194,849

Cameco Corp. (Toronto Stock Exchange)	538,922	21,955,682

Canadian Natural Resources, Ltd.	606,966	30,568,521

Chesapeake Energy Corp. (L)	871,400	31,030,554

China Shenhua Energy Company, Ltd., Class H	2,228,500	9,271,717

CONSOL Energy, Inc.	485,286	24,608,853

Devon Energy Corp.	186,100	17,016,984

EnCana Corp.	576,154	18,727,748

ENI SpA, SADR (L)	746,500	36,466,525

EOG Resources, Inc. (L)	349,069	39,203,939

EQT Corp. (L)	98,160	4,839,288

Exxon Mobil Corp.	375,505	32,116,943

Gazprom OAO, SADR	649,186	19,034,134

Imperial Oil, Ltd.	472,600	24,546,844

Oil Search, Ltd.	1,377,570	9,849,470

PetroChina Company, Ltd., ADR (L)	87,600	11,942,508

Petroleo Brasileiro SA, ADR	680,896	27,120,088

Reliance Industries, Ltd.	536,785	11,462,501

Reliance Industries, Ltd., GDR (S)	22,144	943,113

Reliance Industries, Ltd., GDR	247,949	10,554,371

Rosneft Oil Company, GDR	26,673	251,145

Rosneft Oil Company, GDR (London Exchange)	1,482,889	14,027,841

Sasol, Ltd., SADR (L)	177,300	9,728,451

Southwestern Energy Company (I)(L)	637,200	25,156,656

StatoilHydro ASA, SADR (L)	510,200	13,464,178

Suncor Energy, Inc.	622,141	29,238,802

Ultra Petroleum Corp. (I)(L)	453,500	20,566,225


See notes to financial statements	Semiannual report \| Natural Resources Fund	11


		Shares	Value
Industrials 0.25%			$2,452,617

Industrial Conglomerates 0.25%

Beijing Enterprises Holdings, Ltd.		441,500	2,452,617

Materials 35.15%			341,461,602

Chemicals 1.51%

Sumitomo Chemical Company, Ltd. (L)		2,716,000	14,664,071

Construction Materials 1.58%

CRH PLC (London Exchange)		666,408	15,388,267

Metals & Mining 32.06%

Alumina, Ltd.		8,549,291	20,918,028

Anglo American PLC		649,083	35,156,731

Anglo Platinum, Ltd.		231,399	22,500,035

AngloGold Ashanti, Ltd., SADR (L)		210,041	10,258,402

ArcelorMittal (L)		506,100	18,558,687

BHP Billiton PLC		702,935	27,849,352

Compania de Minas Buenaventura SA, ADR		271,100	12,652,237

First Quantum Minerals, Ltd.		135,500	17,642,684

Gold Fields, Ltd.		515,204	9,237,740

Kazakhmys PLC		554,147	13,000,498

Kinross Gold Corp.		873,800	13,858,468

Lundin Mining Corp. (I)(L)		1,835,500	14,452,756

Mongolian Mining Corp. (I)		10,129,500	12,904,184

Nucor Corp. (L)		309,300	14,834,028

Sumitomo Metal Industries, Ltd.		6,607,000	16,781,432

Vale SA, SADR (L)		732,304	21,947,151

Vedanta Resources PLC (L)		737,146	28,856,851


Warrants 1.09%			$10,609,331

(Cost $12,054,327)

Materials 1.09%			10,609,331
NMDC, Ltd. (Expiration date: 03-25-15, Strike Price: INR 0.00001) (I)		1,825,930	10,609,331

	Yield	Shares	Value
Securities Lending Collateral 17.09%			$165,998,459

(Cost $165,999,864)
John Hancock Collateral Investment Trust (W)	0.2855% (Y)	16,587,571	165,998,459


12	Natural Resources Fund \| Semiannual report	See notes to financial statements


Short-Term Investments 4.07%		$39,500,000

(Cost $39,500,000)
	Par value	Value
Repurchase Agreement 4.07%		39,500,000
Bank of New York Tri-Party Repurchase Agreement dated 2-28-11 at
0.200% to be repurchased at $39,500,219 on 3-1-11, collateralized
by $17,102,613 U.S. Treasury Notes, 2.000% due 1-15-14 (valued at
$17,140,868, including interest) and $23,115,080 U.S. Treasury Notes,
1.250% due 7-15-20 (valued at $23,149,170, including interest)	$39,500,000	39,500,000

Total investments (Cost $961,961,652)† 119.00%	$1,156,042,477


Other assets and liabilities, net (19.00%)		($184,580,200)


Total net assets 100.00%		$971,462,277

The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the Fund.

ADR American Depositary Receipts

GDR Global Depositary Receipt

INR Indian Rupee

SADR Sponsored American Depositary Receipts

(I) Non-income producing security.

(L) All or a portion of this security is on loan as of 2-28-11.

(W) Investment is an affiliate of the Fund, the adviser and/or subadviser. Also, it represents the investment of securities lending collateral received.

(Y) The rate shown is the annualized seven-day yield as of 2-28-11.

† At 2-28-11, the aggregate cost of investment securities for federal income tax purposes was $972,777,259. Net unrealized appreciation aggregated $183,265,218, of which $186,860,231 related to appreciated investment securities and $3,595,013 related to depreciated investment securities.


The Fund had the following country concentration as a percentage of net assets on 2-28-11:
United States	39%
United Kingdom	18%
Canada	18%
South Africa	5%
Brazil	5%
Italy	4%
Russia	3%
Japan	3%
Other Countries	3%
Short-Term Investments & Other	2%


See notes to financial statements	Semiannual report \| Natural Resources Fund	13

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 2-28-11 (unaudited)


Assets

Investments in unaffiliated issuers, at value (Cost $795,961,788) including
$164,179,070 of securities loaned (Note 2)	$990,044,018
Investments in affiliated issuers, at value (Cost $165,999,864) (Note 2)	165,998,459

Total investments, at value (Cost $961,961,652)	1,156,042,477
Cash	58,946
Foreign currency, at value (Cost $17)	17
Receivable for fund shares sold	125,131
Dividends and interest receivable	1,051,443
Receivable for securities lending income	26,706
Receivable due from adviser	1,196
Other receivables and prepaid expenses	25,984

Total assets	1,157,331,900

Liabilities

Payable for investments purchased	6,747,644
Payable for fund shares repurchased	12,903,427
Payable upon return of securities loaned (Note 2)	165,998,358
Payable to affiliates
Accounting and legal services fees	20,900
Transfer agent fees	2,819
Trustees’ fees	958
Other liabilities and accrued expenses	195,517

Total liabilities	185,869,623

Net assets

Capital paid-in	$731,864,703
Accumulated distributions in excess of net investment income	(736,343)
Accumulated net realized gain on investments and foreign
currency transactions	46,246,702
Net unrealized appreciation (depreciation) on investments and translation
of assets and liabilities in foreign currencies	194,087,215

Net assets	$971,462,277

Net asset value per share

Based on net asset values and shares outstanding — the Fund has an
unlimited number of shares authorized with no par value
Class A ($10,216,461 ÷ 402,630 shares)	$25.37
Class I ($2,363,209 ÷ 93,070 shares)	$25.39
Class 1 ($243,491,825 ÷ 9,522,888 shares)	$25.57
Class NAV ($715,390,782 ÷ 28,163,016 shares)	$25.40

Maximum offering price per share

Class A (net asset value per share ÷ 95%)	$26.71


14	Natural Resources Fund \| Semiannual report	See notes to financial statements

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

Statement of operations For the six-month period ended 2-28-11
(unaudited)

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


Investment income

Dividends	$4,992,604
Securities lending	214,009
Interest	25,500
Less foreign taxes withheld	(350,407)

Total investment income	4,881,706

Expenses

Investment management fees (Note 4)	4,203,311
Distribution and service fees (Note 4)	57,503
Accounting and legal services fees (Note 4)	60,436
Transfer agent fees (Note 4)	5,886
Trustees’ fees (Note 4)	3,919
State registration fees (Note 4)	10,509
Printing and postage (Note 4)	1,783
Professional fees	23,017
Custodian fees	183,035
Registration and filing fees	6,361
Other	5,303

Total expenses	4,561,063
Less expense reductions and amount recaptured (Note 4)	(18,031)

Net expenses	4,543,032

Net investment income	338,674

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments in unaffiliated issuers	71,957,778
Investments in affiliated issuers	(32,738)
Foreign currency transactions	(51,175)
	71,873,865
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers	200,767,767
Investments in affiliated issuers	(344)
Translation of assets and liabilities in foreign currencies	17,843
	200,785,266
Net realized and unrealized gain	272,659,131

Increase in net assets from operations	$272,997,805


See notes to financial statements	Semiannual report \| Natural Resources Fund	15

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

Statements of changes in net assets


	Six months
	ended	Year
	2-28-11	ended
	(unaudited)	8-31-10
Increase (decrease) in net assets

From operations
Net investment income	$338,674	$4,376,194
Net realized gain	71,873,865	20,688,948
Change in net unrealized appreciation (depreciation)	200,785,266	11,532,946

Increase in net assets resulting from operations	272,997,805	36,598,088

Distributions to shareholders
From net investment income
Class I	(4,520)	—
Class 1	(861,433)	(998,904)
Class NAV	(3,098,884)	(3,812,968)
From net realized gain
Class A	(12,086)	—
Class I	(3,001)	—
Class 1	(347,749)	—
Class NAV	(1,133,433)	—

Total distributions	(5,461,106)	(4,811,872)

From Fund share transactions (Note 5)	(2,357,925)	6,008,992

Total increase	265,178,774	37,795,208

Net assets

Beginning of period	706,283,503	668,488,295

End of period	$971,462,277	$706,283,503

Undistributed (accumulated distribution in excess of)
net investment income	($736,343)	$2,889,820


16	Natural Resources Fund \| Semiannual report	See notes to financial statements

Financial highlights

The Financial Highlights show how the Fund’s net asset value for a share has changed during the period.


CLASS A SHARES Period ended	2-28-11¹	8-31-10²

Per share operating performance

Net asset value, beginning of period	$18.34	$20.70
Net investment income (loss)³	(0.06)	0.05
Net realized and unrealized gain (loss) on investments	7.13	(2.41)
Total from investment operations	7.07	(2.36)
Less distributions
From net realized gain	(0.04)	—
Net asset value, end of period	$25.37	$18.34
Total return (%)⁴	38.57^5,6	(11.40)^5,6

Ratios and supplemental data

Net assets, end of period (in millions)	$10	$3
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	1.78⁷	1.81⁷
Expenses including reductions and amounts recaptured	1.60⁷	1.60⁷
Net investment income (loss)	(0.53)⁷	0.41⁷
Portfolio turnover (%)	50	70⁸

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class A shares is 1-4-10.
³Based on the average daily shares outstanding.
⁴Does not reflect the effect of sales charges, if any.
⁵Not annualized.
⁶Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁷Annualized.
⁸Portfolio turnover is shown for the period from 9-1-09 to 8-31-10.


See notes to financial statements	Semiannual report \| Natural Resources Fund	17


CLASS I SHARES Period ended	2-28-11¹	8-31-10²

Per share operating performance

Net asset value, beginning of period	$18.37	$20.70
Net investment income (loss)³	(0.02)	0.10
Net realized and unrealized gain (loss) on investments	7.14	(2.43)
Total from investment operations	7.12	(2.33)
Less distributions
From net investment income	(0.06)	—
From net realized gain	(0.04)	—
Total distributions	(0.10)	—
Net asset value, end of period	$25.39	$18.37
Total return (%)	38.81^4,5	(11.26)^4,5

Ratios and supplemental data

Net assets, end of period (in millions)	$2	$1
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	1.78⁶	1.54⁶
Expenses including reductions and amounts recaptured	1.30⁶	1.30⁶
Net investment income (loss)	(0.18)⁶	0.82⁶
Portfolio turnover (%)	50	70⁷

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class I shares is 1-4-10.
³Based on the average daily shares outstanding.
⁴Not annualized.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Annualized.
⁷Portfolio turnover is shown for the period from 9-1-09 to 8-31-10.


CLASS 1 SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08	8-31-07	8-31-06²

Per share operating performance

Net asset value, beginning of period	$18.51	$17.66	$35.15	$42.52	$35.71	$28.70
Net investment income³	—⁴	0.10	0.18	0.18	0.22	0.34
Net realized and unrealized gain (loss)
on investments	7.20	0.87	(11.42)	3.88	8.52	6.70
Total from investment operations	7.20	0.97	(11.24)	4.06	8.74	7.04
Less distributions
From net investment income	(0.10)	(0.12)	(0.19)	(0.23)	(0.34)	(0.03)
From net realized gain	(0.04)	—	(6.06)	(11.20)	(1.59)	—
Total distributions	(0.14)	(0.12)	(6.25)	(11.43)	(1.93)	(0.03)
Net asset value, end of period	$25.57	$18.51	$17.66	$35.15	$42.52	$35.71
Total return (%)	38.96^5,6	5.43⁵	(27.25)	7.02	25.57	24.55⁶

Ratios and supplemental data

Net assets, end of period (in millions)	$243	$154	$139	$171	$111	$81
Ratios (as a percentage of average net assets):
Expenses before reductions and
amounts recaptured	1.11⁷	1.11	1.11	1.11	1.14	1.12⁷
Expenses including reductions and
amounts recaptured	1.11⁷	1.11	1.11	1.11	1.14	1.12⁷
Net investment income	0.03⁷	0.52	1.06	0.44	0.58	1.13⁷
Portfolio turnover (%)	50	70	22	34	54	71

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class 1 shares is 10-15-05.
³Based on the average daily shares outstanding.
⁴Less than $0.005 per share.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.


18	Natural Resources Fund \| Semiannual report	See notes to financial statements


CLASS NAV SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08	8-31-07	8-31-06²

Per share operating performance

Net asset value, beginning of period	$18.39	$17.55	$35.01	$42.39	$35.60	$28.60
Net investment income³	0.01	0.11	0.18	0.19	0.24	0.33
Net realized and unrealized gain (loss)
on investments	7.15	0.86	(11.37)	3.88	8.48	6.71
Total from investment operations	7.16	0.97	(11.19)	4.07	8.72	7.04
Less distributions
From net investment income	(0.11)	(0.13)	(0.21)	(0.25)	(0.34)	(0.04)
From net realized gain	(0.04)	—	(6.06)	(11.20)	(1.59)	—
Total distributions	(0.15)	(0.13)	(6.27)	(11.45)	(1.93)	(0.04)
Net asset value, end of period	$25.40	$18.39	$17.55	$35.01	$42.39	$35.60
Total return (%)	39.00^4,5	5.45⁴	(27.20)	7.08	25.61	24.62⁵

Ratios and supplemental data

Net assets, end of period (in millions)	$715	$548	$529	$500	$731	$692
Ratios (as a percentage of average net assets):
Expenses before reductions and
amounts recaptured	1.06⁶	1.06	1.06	1.06	1.09	1.07⁶
Expenses including reductions and
amounts recaptured	1.06⁶	1.06	1.06	1.06	1.09	1.07⁶
Net investment income	0.10⁶	0.58	1.10	0.45	0.64	1.11⁶
Portfolio turnover (%)	50	70	22	34	54	71

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class NAV shares is 10-15-05.
³Based on the average daily shares outstanding.
⁴Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁵Not annualized.
⁶Annualized.


See notes to financial statements	Semiannual report \| Natural Resources Fund	19

Notes to financial statements
(unaudited)

Note 1 — Organization

John Hancock Natural Resources Fund (the Fund) is a diversified series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the Fund is to seek long-term total return.

The Fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of Assets and Liabilities. Class A shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class 1 shares are offered only to certain affiliates of Manulife Financial Corporation (MFC). Class NAV shares are sold to John Hancock affiliated funds of funds. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, printing and postage, state registration and transfer agent fees for each class may differ.

Note 2 — Significant accounting policies

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. The Fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Fund’s own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.


20	Natural Resources Fund \| Semiannual report

The following is a summary of the values by input classification of the Fund’s investments as of February 28, 2011, by major security category or type:


				LEVEL 3
			LEVEL 2	SIGNIFICANT
	TOTAL MARKET	LEVEL 1	SIGNIFICANT	UNOBSERVABLE
	VALUE AT 2-28-11	QUOTED PRICE	OBSERVABLE INPUTS	INPUTS

Common Stocks
Energy	$596,020,468	$487,401,847	$108,618,621	—
Industrials	2,452,617	—	2,452,617	—
Materials	341,461,602	124,204,413	217,257,189	—
Warrants	10,609,331	—	10,609,331	—
Securities Lending
Collateral	165,998,459	165,998,459	—	—
Short-Term Investments	39,500,000	—	39,500,000	—
Total Investments in
Securities	$1,156,042,477	$777,604,719	$378,437,758	—

In order to value the securities, the Fund uses the following valuation techniques. Equity securities held by the Fund are valued at the last sale price or official closing price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Investments in open-end mutual funds, including John Hancock Collateral Investment Trust (JHCIT), are valued at their closing net asset values each day. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain 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. Certain short-term securities are valued at amortized cost.

Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Fund’s Pricing Committee, following procedures established by 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 NYSE. Significant market events that affect the values of non-U.S. securities may occur between the time when the valuation of the securities is generally determined and the close of the NYSE. During significant market events, these securities will be valued at fair value, as determined in good faith, following procedures established by the Board of Trustees. The Fund may use a fair valuation model to value non-U.S. securities in order to adjust for events which may occur between the close of foreign exchanges and the close of the NYSE.


Semiannual report \| Natural Resources Fund	21

Securities lending. The Fund may lend its securities to earn additional income. It receives and maintains cash collateral received from the borrower in an amount not less than the market value of the loaned securities. The Fund will invest its collateral in JHCIT, an affiliate of the Fund, and as a result, the Fund will receive the benefit of any gains and bear any losses generated by JHCIT. Although risk of the loss of the securities lent is mitigated by holding the collateral, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities or if collateral investments decline in value. The Fund may receive compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Income received from JHCIT is a component of securities lending income as recorded on the Statement of Operations.

Foreign currency translation. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on securities is reflected as a component of the realized and unrealized gains (losses) on investments.

Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs) and accounting standards. Foreign investments are also subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.

The Fund may be subject to capital gains and repatriation taxes as imposed by certain countries in which it invests. 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.

In addition, the Fund and other affiliated funds have entered into an agreement with State Street Bank and Trust Company (SSBT) which enables them to participate in a $200 million unsecured committed line of credit. A commitment fee, 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 pro rata basis and is reflected in other expenses on the Statement of Operations. For the six months ended February 28, 2011, the Fund had no borrowings under the line of credit.

Effective March 30, 2011, the line of credit with SSBT expired and a similar arrangement was established with Citibank N.A.


22	Natural Resources Fund \| Semiannual report

For federal income tax purposes, the Fund has a capital loss carryforward of $10,883,164 available to offset future net realized capital gains as of August 31, 2010. The loss carryforward expires as follows: August 31, 2017 — $3,213,814 and August 31, 2018 — $7,669,350.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The Fund generally declares and pays dividends and capital gain distributions, if any, annually.

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.

Note 3 — Guarantees and indemnifications


Semiannual report \| Natural Resources Fund	23

general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. The risk of material loss from such claims is considered remote.

Note 4 — Fees and transactions with affiliates

John Hancock Investment Management Services, LLC (the Adviser) serves as investment adviser for the Fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Trust. The Adviser and the Distributor are indirect wholly owned subsidiaries of MFC.

Management fee. The Fund has an investment management contract with the Adviser under which the Fund pays a daily management fee to the Adviser equivalent, on an annual basis, to the sum of: (a) 1.000% of the first $1,000,000,000 of the Fund’s aggregate net assets; (b) 0.975% of the next $1,000,000,000; and (c) 0.950% of the Fund’s aggregate net assets in excess of $2,000,000,000. Aggregate net assets include the net assets of the Fund and the Natural Resources Trust, a series of John Hancock Trust, an affiliate of the Trust. The Adviser has a subadvisory agreement with Wellington Management Company, LLP. The Fund is not responsible for payment of the subadvisory fees.

The investment management fees incurred for the six months ended February 28, 2011 were equivalent to an annual effective rate of 1.00% of the Fund’s average daily net assets.

The Adviser has voluntarily agreed to waive a portion of its management fee if certain expenses of the Fund exceed 0.20% of average net assets. Expenses excluded from this waiver are taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses and extraordinary expenses not incurred in the ordinary course of the Fund’s business, advisory fees, Rule 12b-1 fees, service fees, transfer agency fees, blue sky fees, printing and postage, and fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund. This expense reduction will continue in effect until terminated by the Adviser.

The Adviser contractually has agreed to waive a portion of the management fee for certain funds of the Trust. The waiver equals, on an annualized basis 0.01% of that portion of the aggregate net assets of all the participating funds that exceeds $85 billion. The amount of the reimbursement is calculated daily and allocated among all the funds in proportion of the daily net assets of each Fund. This expense reduction will continue in effect until terminated by the Adviser.

The Adviser has contractually agreed to waive fees and/or reimburse certain expenses for Class A and Class I shares. This agreement excluded taxes, portfolio brokerage commissions, interest, overdraft, litigation and other extraordinary expenses not incurred in the ordinary course of the Fund’s business. The fee waivers and/or reimbursements are such that these expenses will not exceed 1.60% and 1.30% for Class A and Class I shares, respectively. The fee waivers and/or reimbursements will continue in effect until December 31, 2011.

Accordingly, these expense reductions amounted to $5,306, $3,935, $2,050 and $6,740 for Class A, Class I, Class 1 and Class NAV shares, respectively, for the six months ended February 28, 2011.

Expense recapture. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements for a period of three years following the beginning of the month in which such reimbursements or waivers originally occurred. The table below outlines the amounts recovered during the six months ended February 28, 2011, and the amount of waived or reimbursed expenses subject to potential recovery and the respective expiration dates. Certain reimbursements or waivers are not subject to recapture.


24	Natural Resources Fund \| Semiannual report


AMOUNT ELIGIBLE FOR	AMOUNT ELIGIBLE	AMOUNT RECOVERED DURING
RECOVERY THROUGH	FOR RECOVERY THROUGH	THE SIX MONTHS ENDED
AUGUST 1, 2013	FEBRUARY 1, 2014	FEBRUARY 28, 2011


$3,278	$9,160	—

Accounting and legal services. Pursuant to the service agreement, the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. The accounting and legal services fees incurred for the six months ended February 28, 2011 amounted to an annual rate of 0.01% of the Fund’s average daily net assets.

Distribution and service plans. The Fund has a distribution agreement with the Distributor. The Fund has adopted distribution and service plans with respect to Class A and Class 1 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the Fund. The Fund may pay up to 0.30% and 0.05% for Class A and Class 1 shares, respectively, for distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets.

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $50,140 for the six months ended February 28, 2011. Of this amount, $6,457 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $43,278 was paid as sales commissions to broker-dealers and $405 was paid as sales commissions to sales personnel of Signator Investors, Inc. (Signator Investors), a broker-dealer affiliate of the Adviser.

Transfer agent fees. The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services or Transfer Agent), an affiliate of the Adviser. Class 1 and Class NAV shares do not pay transfer agent fees. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain revenues that Signature Services receive in connection with the service they provide to the funds. Signature Services Cost is calculated monthly and allocated, as applicable, to four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.

Class level expenses. Class level expenses for the six months ended February 28, 2011 were:


	DISTRIBUTION	TRANSFER	STATE	PRINTING AND
CLASS	AND SERVICE FEES	AGENT FEES	REGISTRATION FEES	POSTAGE

Class A	$8,914	$5,465	$5,434	$1,327

Class I	—	421	5,075	456
Class 1	48,589	—	—	—
Total	$57,503	$5,886	$10,509	$1,783


Semiannual report \| Natural Resources Fund	25

Note 5 — Fund share transactions

Transactions in Fund shares for the six months ended February 28, 2011 and for the year ended
August 31, 2010 were as follows:


	Six months ended 2-28-11		Year ended 8-31-10¹
	Shares	Amount	Shares	Amount
Class A shares

Sold	289,739	$6,588,246	187,368	$3,755,265
Distributions reinvested	499	11,642	—	—
Repurchased	(55,608)	(1,183,813)	(19,368)	(367,536)
Net increase	234,630	$5,416,075	168,000	$3,387,729

Class I shares

Sold	37,687	$847,867	58,426	$1,216,167
Distributions reinvested	323	7,521	—	—
Repurchased	(3,366)	(72,079)	—	(8)
Net increase	34,644	$783,309	58,426	$1,216,159

Class 1 shares

Sold	1,436,520	$33,734,672	1,591,445	$32,465,155
Distributions reinvested	51,520	1,209,182	48,775	998,904
Repurchased	(266,681)	(5,806,510)	(1,211,785)	(23,348,764)
Net increase	1,221,359	$29,137,344	428,435	$10,115,295

Class NAV shares

Sold	1,232,720	$27,715,826	5,546,181	$106,543,381
Distributions reinvested	181,489	4,232,317	187,461	3,812,968
Repurchased	(3,074,410)	(69,642,796)	(6,072,363)	(119,066,540)
Net decrease	(1,660,201)	($37,694,653)	(338,721)	($8,710,191)

Net increase (decrease)	(169,568)	($2,357,925)	316,140	$6,008,992

¹The inception date for Class A and Class I shares is 1-4-10.

Affiliates of the Fund owned 100% of shares of beneficial interest of Class 1 and Class NAV shares on February 28, 2011.

Note 6 — Purchase and sale of securities

Purchases and sales of securities, other than short-term securities, aggregated $405,250,664 and $407,803,491, respectively, for the six months ended February 28, 2011.

Note 7 — Investment by affiliated funds


	AFFILIATE
FUND	CONCENTRATION

Lifestyle Aggressive Portfolio	12.6%
Lifestyle Balanced Portfolio	19.8%
Lifestyle Growth Portfolio	26.3%


26	Natural Resources Fund \| Semiannual report

More information


Trustees	Investment adviser
James M. Oates, Chairman	John Hancock Investment Management
James R. Boyle†	Services, LLC
Charles L. Bardelis*
Peter S. Burgess*	Subadviser
Grace K. Fey	Wellington Management Company, LLP
Theron S. Hoffman
Hassell H. McClellan	Principal distributor
Steven M. Roberts*	John Hancock Funds, LLC

Officers	Custodian
Hugh McHaffie	State Street Bank and Trust Company
President
	Transfer agent
Thomas M. Kinzler	John Hancock Signature Services, Inc.
Secretary and Chief Legal Officer
	Legal counsel
Francis V. Knox, Jr.	K&L Gates LLP
Chief Compliance Officer

Michael J. Leary	The report is certified under the Sarbanes-Oxley
Treasurer	Act, which requires mutual funds and other public
	companies to affirm that, to the best of their
Charles A. Rizzo	knowledge, the information in their financial reports
Chief Financial Officer	is fairly and accurately stated in all material respects.

John G. Vrysen
Chief Operating Officer

*Member of the Audit Committee
†Non-Independent Trustee

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site www.jhfunds.com or by calling 1-800-225-5291.


You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 55913	Mutual Fund Image Operations
	Boston, MA 02205-5913	30 Dan Road
		Canton, MA 02021


Semiannual report \| Natural Resources Fund	27

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 Natural Resources Fund.	354SA 2/11
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	4/11

A look at performance

For the period ended February 28, 2011


										SEC 30-day	SEC 30-day
	Average annual total returns (%)				Cumulative total returns (%)					yield (%)	yield (%)
	with maximum sales charge (POP)				with maximum sales charge (POP)					subsidized	unsubsidized¹

				Since					Since	as of	as of
	1-year	5-year	10-year	inception²	6-months	1-year	5-year	10-year	inception²	2-28-11	2-28-11

Class A³	9.51	—	—	7.44	3.83	9.51	—	—	41.54	4.53	4.44

Class C³	12.96	—	—	7.14	7.34	12.96	—	—	39.58	4.03	3.91

Class I^3,4	15.05	—	—	9.20	8.81	15.05	—	—	53.06	5.12	5.12

Class NAV ⁴	15.18	—	—	9.26	8.86	15.18	—	—	53.47	5.19	5.19

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charges on Class A shares of 4.5%, and the applicable contingent deferred sales charge (CDSC) on Class C shares. Sales charges are not applicable for Class I and Class NAV shares.

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The net expenses are as follows: Class A — 1.19% and Class C — 1.89%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.23% and Class C — 1.94%. For all other classes, the net expenses equal the gross expenses and are as follows: Class I — 0.83% and Class NAV — 0.77%.

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

¹Unsubsidized yields reflect what the yields would have been without the effect of reimbursements and waivers.

²From 4-28-06.

³4-28-06 is the inception date for the oldest class of shares, Class NAV shares. The inception date for Class A shares, Class C shares and Class I shares is 1-4-10. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A, Class C and Class I shares, respectively.

⁴For certain types of investors, as described in the Fund’s Class I and Class NAV shares prospectuses.


6	Strategic Income Opportunities Fund \| Semiannual report


	Period	Without	With maximum
	beginning	sales charge	sales charge	Index

Class A²	4-28-06	$14,821	$14,154	$13,415

Class C²	4-28-06	13,958	13,958	13,415

Class I^2,3	4-28-06	15,306	15,306	13,415

Assuming all distributions were reinvested for the period indicated, the table above shows the value of $10,000 investment in the Fund’s Class A, Class C and Class I shares, respectively, as of 2-28-11. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in different classes and the fee structure of those classes.

Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issue.

It is not possible to invest directly in an index. Index figures do not reflect sales charges or foreign currency impact, which would have resulted in different values if they did.

¹NAV represents net asset value.

²4-28-06 is the inception date for the oldest class of shares, Class NAV shares. The inception date for Class A shares, Class C shares and Class I shares is 1-4-10. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A, Class C and Class I shares, respectively.

³For certain types of investors, as described in the Fund’s Class I and Class NAV shares prospectuses.


Semiannual report \| Strategic Income Opportunities Fund	7

Your expenses

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

Understanding fund expenses

As a shareholder of the Fund, 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 fund expenses.

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

Actual expenses/actual returns


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11¹

Class A	$1,000.00	$1,086.20	$6.05

Class C	1,000.00	1,082.40	9.66

Class I	1,000.00	1,087.10	4.14

Class NAV	1,000.00	1,088.60	3.83


8	Strategic Income Opportunities Fund \| Semiannual report

Hypothetical example for comparison purposes


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11¹

Class A	$1,000.00	$1,019.00	$5.86

Class C	1,000.00	1,015.50	9.35

Class I	1,000.00	1,020.80	4.01

Class NAV	1,000.00	1,021.10	3.71

¹Expenses are equal to the Fund’s annualized expense ratio of 1.17%, 1.87%, 0.80% and 0.74% for Class A, Class C, Class I and Class NAV shares, respectively, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).


Semiannual report \| Strategic Income Opportunities Fund	9

Portfolio summary


Portfolio Composition¹

Corporate Bonds	46%	Collateralized Mortgage Obligations	3%

Foreign Government Obligations	26%	Common Stocks	2%

Term Loans	4%	Capital Preferred Securities	2%

Municipal Bonds	4%	Asset-Backed Securities	1%

Convertible Bonds	4%	Short-Term Investments & Other	5%

Preferred Securities	3%


Sector Composition^1,2

Foreign Government Obligations	26%	Collateralized Mortgage Obligations	3%

Financials	23%	Consumer Staples	2%

Consumer Discretionary	13%	Health Care	2%

Materials	6%	Information Technology	1%

Industrials	5%	Utilities	1%

Telecommunication Services	4%	Asset-Backed Securities	1%

Energy	4%	Short-Term Investments & Other	5%

Municipal Bonds	4%


Quality Composition^1,3

AAA	25%	B	18%

AA	7%	CCC & Below	5%

A	7%	Not Rated	7%

BBB	8%	Equity	2%

BB	16%	Short-Term Investments & Other	5%

¹As a percentage of net assets on 2-28-11.

²Sector investing is subject to greater risks than the market as a whole. Because the Fund may focus on particular sectors of the economy, its performance may depend on the performance of these sectors. International investing involves special risks such as political, economic and currency risks and differences in accounting standards and financial reporting.

³Ratings are from Moody’s Investor Services, Inc. If not available, we have used S&P ratings. In the absence of ratings from these agencies, we have used Fitch, Inc. ratings. “Not Rated” securities are those with no ratings available. They may have internal ratings similar to those shown. All are as of 2-28-11 and do not reflect subsequent downgrades, if any.


10	Strategic Income Opportunities Fund \| Semiannual report

Fund’s investments

As of 2-28-11 (unaudited)


		Maturity
	Rate (%)	date	Par value	Value
Corporate Bonds 46.83%				$737,267,699

(Cost $693,445,686)

Consumer Discretionary 8.88%				139,861,755

Auto Components 1.27%

Allison Transmission, Inc. (S)	11.000	11-01-15	$6,340,000	6,894,794

Allison Transmission, Inc., PIK (S)	11.250	11-01-15	5,140,400	5,603,036

Exide Technologies (S)	8.625	02-01-18	2,200,000	2,345,750

Lear Corp.	8.125	03-15-20	2,500,000	2,800,000

Lear Corp., Series B, Escrow Certificates (I)	8.750	12-01-16	940,000	21,150

Tenneco, Inc. (S)	6.875	12-15-20	1,600,000	1,660,000

The Goodyear Tire & Rubber Company	10.500	05-15-16	325,000	370,500

TRW Automotive, Inc. (S)	8.875	12-01-17	340,000	384,625

Auto Manufacturers 0.06%

Volvo Treasury AB (S)	5.950	04-01-15	850,000	928,708

Automobiles 0.06%

Hyundai Capital America (S)	3.750	04-06-16	955,000	938,332

Food Products 0.19%

Simmons Foods, Inc. (S)	10.500	11-01-17	2,735,000	2,946,963

Hotels, Restaurants & Leisure 2.76%

Choctaw Resort Development Enterprise (S)	7.250	11-15-19	218,000	164,590

Fontainebleau Las Vegas Holdings LLC (H)(S)	10.250	06-15-15	1,295,000	6,475

Great Canadian Gaming Corp. (S)	7.250	02-15-15	1,570,000	1,605,325

HRP Myrtle Beach Operations LLC (H)(S)	Zero	04-01-12	1,685,000	0

Jacobs Entertainment, Inc.	9.750	06-15-14	5,110,000	5,186,650

Landry’s Restaurants, Inc. (S)	11.625	12-01-15	620,000	672,700

Landry’s Restaurants, Inc.	11.625	12-01-15	1,385,000	1,502,725

Little Traverse Bay Bands of Odawa Indians (S)	9.000	08-31-20	464,000	417,600

Majestic Star Casino LLC (H)	9.500	10-15-10	1,360,000	725,900

Mandalay Resort Group	6.375	12-15-11	1,595,000	1,610,950

Mashantucket Western Pequot Tribe, Series A
(H)(S)	8.500	11-15-15	2,015,000	201,500

MGM Resorts International (S)	9.000	03-15-20	540,000	589,950

Midwest Gaming Borrower LLC/Midwest
Finance Corp. (S)	11.625	04-15-16	205,000	218,325

Mohegan Tribal Gaming Authority (S)	11.500	11-01-17	255,000	258,188

Mohegan Tribal Gaming Authority	8.000	04-01-12	3,355,000	2,876,913

Mohegan Tribal Gaming Authority	7.125	08-15-14	6,100,000	4,468,250

MTR Gaming Group, Inc.	12.625	07-15-14	4,565,000	4,861,725


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	11


		Maturity
	Rate (%)	date	Par value	Value
Hotels, Restaurants & Leisure (continued)

MTR Gaming Group, Inc., Series B	9.000	06-01-12	$4,745,000	$4,400,988

Pokagon Gaming Authority (S)	10.375	06-15-14	1,934,000	2,016,195

Seminole Indian Tribe of Florida (S)	7.750	10-01-17	635,000	673,894

Snoqualmie Entertainment Authority (S)	9.125	02-01-15	2,985,000	2,985,000

Turning Stone Resort Casino Enterprises (S)	9.125	09-15-14	5,365,000	5,512,538

Waterford Gaming LLC (S)	8.625	09-15-14	1,876,000	877,030

Yonkers Racing Corp. (S)	11.375	07-15-16	1,524,000	1,710,690

Household Durables 0.09%

Beazer Homes USA, Inc. (S)	9.125	05-15-19	980,000	1,010,625

Standard Pacific Corp.	8.375	05-15-18	385,000	408,100

Household Products 0.19%

Reynolds Group Issuer, Inc. (S)	8.500	05-15-18	2,070,000	2,142,450

Reynolds Group Issuer, Inc. (S)	8.250	02-15-21	870,000	872,175

Media 3.53%

AMC Entertainment Holdings, Inc. (S)	9.750	12-01-20	3,290,000	3,528,525

AMC Entertainment, Inc.	8.750	06-01-19	1,465,000	1,573,044

AMC Entertainment, Inc.	8.000	03-01-14	5,255,000	5,333,825

Cablevision Systems Corp.	8.625	09-15-17	1,630,000	1,825,600

Cablevision Systems Corp.	8.000	04-15-20	1,300,000	1,417,000

Canadian Satellite Radio Holdings, Inc. (P)	1.500	02-14-16	132,650	115,708

CCH II LLC/CCH II Capital Corp.	13.500	11-30-16	5,418,017	6,562,573

CCO Holdings LLC/CCO Holdings Capital
Corp. (S)	7.000	01-15-19	780,000	791,700

CCO Holdings LLC/CCO Holdings Capital Corp.	7.000	01-15-19	1,235,000	1,256,613

Cinemark USA, Inc.	8.625	06-15-19	500,000	545,000

Citadel Broadcasting Corp. (S)	7.750	12-15-18	335,000	359,288

Clear Channel Communications, Inc.	10.750	08-01-16	5,305,000	5,172,375

Clear Channel Communications, Inc. (S)	9.000	03-01-21	1,690,000	1,717,463

Clear Channel Communications, Inc., PIK	11.000	08-01-16	2,759,203	2,641,937

Comcast Corp.	4.950	06-15-16	805,000	859,896

CSC Holdings LLC	8.500	06-15-15	1,450,000	1,587,750

Nexstar Broadcasting, Inc.	7.000	01-15-14	230,000	224,250

Nexstar Broadcasting, Inc., PIK	7.000	01-15-14	699,997	678,997

Radio One, Inc., PIK (S)	12.500	05-24-16	422,128	440,068

Regal Cinemas Corp.	8.625	07-15-19	295,000	316,388

Regal Entertainment Group	9.125	08-15-18	1,210,000	1,294,700

Shaw Communications, Inc. (CAD)(D)	6.500	06-02-14	1,110,000	1,249,694

Shaw Communications, Inc. (CAD)(D)	5.700	03-02-17	610,000	671,217

Shaw Communications, Inc. (CAD)(D)	5.500	12-07-20	1,580,000	1,644,807

Sirius XM Radio, Inc. (S)	8.750	04-01-15	$5,055,000	5,604,731

SuperMedia, Inc., Escrow Certificates (I)	8.000	11-15-16	2,015,000	0

Videotron Ltee (CAD)(D)(S)	7.125	01-15-20	1,475,000	1,602,164

XM Satellite Radio, Inc. (S)	13.000	08-01-13	$5,495,000	6,552,788

Young Broadcasting, Inc. (H)	10.000	03-01-11	680,000	7

Multiline Retail 0.15%

Michaels Stores, Inc.	11.375	11-01-16	2,100,000	2,294,250


12	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Personal Products 0.06%

Diversey, Inc.	8.250	11-15-19	$440,000	$479,050

Revlon Consumer Products Corp.	9.750	11-15-15	400,000	434,000

Specialty Retail 0.43%

Empire Today LLC/Empire Today
Finance Corp. (S)	11.375	02-01-17	2,565,000	2,680,425

Giraffe Acquisition Corp. (S)	9.125	12-01-18	1,265,000	1,290,300

Hillman Group, Inc.	10.875	06-01-18	1,770,000	1,947,000

Sonic Automotive, Inc.	9.000	03-15-18	350,000	374,500

Toys R Us Property Company LLC	8.500	12-01-17	495,000	538,313

Textiles, Apparel & Luxury Goods 0.09%

Phillips-Van Heusen Corp.	7.375	05-15-20	1,300,000	1,384,500

Consumer Staples 2.04%				32,101,564

Beverages 0.19%

Anheuser-Busch InBev Worldwide, Inc. (BRL)(D)	9.750	11-17-15	4,848,000	2,979,373

Commercial Services & Supplies 0.19%

ARAMARK Corp.	8.500	02-01-15	$2,855,000	2,983,475

Food Products 1.34%

Arcor (S)	7.250	11-09-17	785,000	821,503

B&G Foods, Inc.	7.625	01-15-18	1,345,000	1,435,788

Blue Merger Sub, Inc. (S)	7.625	02-15-19	1,265,000	1,277,650

Corp. Pesquera Inca SAC (S)	9.000	02-10-17	2,070,000	2,189,025

Cosan SA Industria e Comercio (S)	8.250	— (Q)	5,230,000	5,230,000

Grupo Bimbo SAB de CV (S)	4.875	06-30-20	1,765,000	1,741,100

JBS Finance II, Ltd. (S)	8.250	01-29-18	3,370,000	3,403,700

TreeHouse Foods, Inc.	7.750	03-01-18	1,000,000	1,082,500

Viterra, Inc. (CAD)(D)	8.500	07-07-14	3,460,000	3,903,206

Household Products 0.32%

Yankee Candle Company, Inc.	8.500	02-15-15	$3,515,000	3,677,569

Yankee Candle Company, Inc., Series B	9.750	02-15-17	730,000	779,275

YCC Holdings LLC/Yankee Finance, Inc., PIK (S)	10.250	02-15-16	580,000	597,400

Energy 3.61%				56,909,425

Energy Equipment & Services 0.51%

Calfrac Holdings LP (S)	7.500	12-01-20	2,405,000	2,465,125

PHI, Inc.	8.625	10-15-18	3,150,000	3,299,625

Trinidad Drilling, Ltd. (S)	7.875	01-15-19	1,250,000	1,307,813

Weatherford International, Ltd.	9.625	03-01-19	800,000	1,047,556

Oil, Gas & Consumable Fuels 3.10%

Anadarko Petroleum Corp.	6.375	09-15-17	1,030,000	1,148,032

Arch Coal, Inc.	8.750	08-01-16	2,000,000	2,232,500

Atlas Pipeline Partners LP	8.125	12-15-15	1,120,000	1,169,000

Bumi Investment Pte, Ltd. (S)	10.750	10-06-17	1,110,000	1,222,388

Drummond Company, Inc.	7.375	02-15-16	5,610,000	5,806,350

Ecopetrol SA	7.625	07-23-19	1,165,000	1,348,488

Energy Partners, Ltd. (S)	8.250	02-15-18	1,325,000	1,318,375

Enterprise Products Operating LLC, Series G	5.600	10-15-14	980,000	1,086,765

Gibson Energy ULC/GEP Midstream
Finance Corp.	10.000	01-15-18	930,000	971,850


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	13


		Maturity
	Rate (%)	date	Par value	Value
Oil, Gas & Consumable Fuels (continued)

Harvest Operations Corp. (S)	6.875	10-01-17	$240,000	$249,600

Linn Energy LLC/Linn Energy Finance Corp. (S)	8.625	04-15-20	1,875,000	2,090,625

MarkWest Energy Partners LP/MarkWest
Energy Finance Corp.	6.500	08-15-21	1,745,000	1,742,819

MarkWest Energy Partners LP/MarkWest
Energy Finance Corp., Series B	8.750	04-15-18	520,000	569,400

McMoRan Exploration Company	11.875	11-15-14	4,545,000	4,988,138

Niska Gas Storage US LLC/Niska Gas Storage
Canada ULC (S)	8.875	03-15-18	1,350,000	1,471,500

Overseas Shipholding Group, Inc.	8.125	03-30-18	1,820,000	1,820,000

Pan American Energy LLC (S)	7.875	05-07-21	2,895,000	3,083,175

Petrobras International Finance Company	5.375	01-27-21	2,660,000	2,669,371

Petroleos Mexicanos	6.000	03-05-20	850,000	888,250

RDS Ultra-Deepwater, Ltd. (S)	11.875	03-15-17	3,905,000	4,324,788

Regency Energy Partners LP/Regency Energy
Finance Corp.	9.375	06-01-16	2,510,000	2,808,063

Reliance Holdings USA, Inc. (S)	4.500	10-19-20	840,000	794,638

Targa Resources Partners LP	8.250	07-01-16	760,000	805,600

Valero Energy Corp.	6.125	02-01-20	485,000	522,900

Valero Energy Corp.	4.500	02-01-15	485,000	512,773

Westmoreland Coal Company/
Westmoreland Partners (S)	10.750	02-01-18	2,660,000	2,606,800

Williams Partners LP	7.250	02-01-17	460,000	537,118

Financials 16.91%				266,217,234

Capital Markets 1.91%

Ameriprise Financial, Inc. (7.518% to 6-1-16,
then 3 month LIBOR + 2.905%)	7.518	06-01-66	355,000	376,300

Hongkong Land Treasury Services (Singapore)
Pte, Ltd. (SGD)(D)	3.860	12-29-17	2,500,000	1,999,120

Macquarie Group, Ltd. (S)	7.300	08-01-14	$595,000	663,753

Morgan Stanley (BRL)(D)(S)	10.090	05-03-17	19,600,000	11,250,150

Morgan Stanley & Company, Inc. (BRL)(D)(S)	11.500	10-22-20	5,006,000	3,023,819

Offshore Group Investments, Ltd. (S)	11.500	08-01-15	$7,705,000	8,629,600

Temasek Financial I, Ltd. (SGD)(D)	3.265	02-19-20	5,250,000	4,176,516

Commercial Banks 2.14%

ANZ National International, Ltd. (SGD)(D)	2.950	07-27-15	2,750,000	2,186,094

BOM Capital PLC (S)	6.699	03-11-15	$860,000	896,550

Citizens Republic Bancorp, Inc.	5.750	02-01-13	3,500,000	3,041,724

First Tennessee Bank NA	5.050	01-15-15	508,000	519,690

Huntington Bancshares, Inc.	7.000	12-15-20	740,000	810,042

M&I Marshall & Ilsley Bank	5.000	01-17-17	5,754,000	5,997,227

Regions Financial Corp.	7.375	12-10-37	2,885,000	2,798,450

Royal Bank of Scotland PLC (SGD)(D)(P)	2.049	03-31-14	7,500,000	5,767,947

Santander Issuances SA (6.500% to 11-15-14,
then 3 month LIBOR + 3.920%) (S)	6.500	08-11-19	$1,000,000	1,019,500

Standard Chartered Bank (SGD)(D)	2.220	07-05-13	6,000,000	4,742,467

State Bank of India/London (S)	4.500	07-27-15	$1,400,000	1,419,302

Synovus Financial Corp.	5.125	06-15-17	760,000	718,202

The South Financial Group, Inc. (P)	1.715	09-01-37	490,000	387,100


14	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Commercial Banks (continued)

Western Alliance Bancorp	10.000	09-01-15	$2,155,000	$2,262,750

Wilmington Trust Corp.	8.500	04-02-18	938,000	1,086,614

Consumer Finance 0.08%

Ford Motor Credit Company LLC	8.700	10-01-14	1,100,000	1,254,524

Diversified Financial Services 9.15%

CCM Merger, Inc. (S)	8.000	08-01-13	4,765,000	4,812,650

Continental Trustees Cayman, Ltd. (7.375% to
10-7-20, then 3 month LIBOR + 6.802%) (S)	7.375	10-07-40	1,625,000	1,661,563

Corp. Andina de Fomento	3.750	01-15-16	2,010,000	1,992,025

Council of Europe Development Bank (AUD)(D)	5.250	05-27-13	2,760,000	2,794,589

Crown Castle Towers LLC (S)	4.883	08-15-20	$2,200,000	2,205,823

Eurofima (AUD)(D)	6.000	01-28-14	3,190,000	3,270,080

European Bank for Reconstruction
& Development (BRL)(D)	9.250	09-10-12	14,910,000	8,953,348

European Investment Bank (NZD)(D)	7.000	01-18-12	2,550,000	1,980,106

European Investment Bank (AUD)(D)	5.375	05-20-14	6,465,000	6,528,539

European Investment Bank (NOK)(D)	4.250	02-04-15	60,300,000	10,941,540

Export-Import Bank of Korea (INR)(D)(S)	6.500	01-25-12	111,800,000	2,462,984

General Electric Capital Australia Funding
Pty, Ltd. (AUD)(D)	7.000	10-08-15	5,300,000	5,473,957

General Electric Capital Australia Funding
Pty, Ltd. (AUD)(D)	6.500	11-15-11	2,870,000	2,937,965

General Electric Capital Corp., Series A (NZD)(D)	7.625	12-10-14	14,055,000	11,456,181

Inter-American Development Bank (AUD)(D)	5.375	05-27-14	5,000,000	5,064,530

Inter-American Development Bank (INR)(D)	4.750	01-10-14	166,600,000	3,608,409

Inter-American Development Bank, Series INTL
(NZD)(D)	7.250	05-24-12	9,930,000	7,819,094

Inter-American Development Bank, Series MPLE
(CAD)(D)	4.250	12-02-12	495,000	529,309

International Bank for Reconstruction
& Development (NZD)(D)	5.375	12-15-14	7,930,000	6,167,616

International Finance Corp. (AUD)(D)	7.500	02-28-13	2,515,000	2,664,311

Kreditanstalt fuer Wiederaufbau (IDR)(D)	7.000	10-22-12	47,700,000,000	5,371,497

Kreditanstalt fuer Wiederaufbau (AUD)(D)	6.000	08-20-20	18,700,000	18,413,857

Kreditanstalt fuer Wiederaufbau (AUD)(D)	5.750	05-13-15	15,350,000	15,560,283

Kreditanstalt fuer Wiederaufbau (NOK)(D)	4.000	12-15-14	13,000,000	2,344,694

Lancer Finance Company SPV, Ltd. (S)	5.850	12-12-16	$489,576	476,841

Landry’s Holdings, Inc. (S)	11.500	06-01-14	3,945,000	3,915,413

Local TV Finance LLC, PIK (S)	9.250	06-15-15	291,721	282,969

Nationstar Mortgage/Nationstar Capital Corp. (S)	10.875	04-01-15	925,000	952,750

Odebrecht Finance, Ltd. (S)	7.500	10-18-17	970,000	1,052,450

Ono Finance II PLC (S)	10.875	07-15-19	395,000	424,625

Orascom Telecom Finance SCA (S)	7.875	02-08-14	755,000	728,575

TAM Capital, Inc.	7.375	04-25-17	1,205,000	1,223,075

Insurance 2.06%

American International Group, Inc. (8.175% to
5-15-38, then 3 month LIBOR + 4.195%)	8.175	05-15-58	12,370,000	13,576,075

Chubb Corp. (6.375% until 4-15-17, then
3 month LIBOR + 2.250%)	6.375	03-29-67	2,235,000	2,363,513


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	15


		Maturity
	Rate (%)	date	Par value	Value
Insurance (continued)

CNO Financial Group, Inc. (S)	9.000	01-15-18	$2,930,000	$3,120,450

Glen Meadow Pass-through Trust (6.505% to
2-15-17, then 3 month LIBOR +2.125%) (S)	6.505	02-12-67	6,530,000	5,795,375

Liberty Mutual Group, Inc. (10.750% to
6-15-38, then 3 month LIBOR + 7.120%) (S)	10.750	06-15-58	1,930,000	2,513,825

MetLife, Inc.	6.400	12-15-36	4,300,000	4,110,370

Symetra Financial Corp. (8.300% to 10-15-17,
then 3 month LIBOR + 4.177%) (S)	8.300	10-15-37	905,000	895,950

Real Estate Investment Trusts 0.05%

Dupont Fabros Technology LP	8.500	12-15-17	790,000	870,975

Real Estate Management & Development 1.52%

CapitaMalls Asia Treasury, Ltd. (SGD)(D)	3.950	08-24-17	7,750,000	6,193,394

Country Garden Holdings Company (S)	11.125	02-23-18	$1,190,000	1,187,620

Realogy Corp. (S)	12.000	04-15-17	6,051,484	6,414,573

Realogy Corp. (S)	11.500	04-15-17	5,955,000	6,342,075

Realogy Corp. (S)	7.875	02-15-19	3,720,000	3,733,950

Health Care 1.08%				16,948,440

Biotechnology 0.07%

Giant Funding Corp. (S)	8.250	02-01-18	1,005,000	1,032,638

Health Care Equipment & Supplies 0.15%

Alere, Inc.	8.625	10-01-18	2,160,000	2,289,600

Health Care Providers & Services 0.57%

BioScrip, Inc.	10.250	10-01-15	700,000	738,500

Community Health Systems, Inc.	8.875	07-15-15	2,240,000	2,374,400

HCA, Inc.	9.125	11-15-14	460,000	482,425

HCA, Inc.	8.500	04-15-19	3,500,000	3,920,000

LifePoint Hospitals, Inc. (S)	6.625	10-01-20	480,000	491,400

Vanguard Health Systems, Inc. (S)	Zero	02-01-16	1,550,000	999,750

Pharmaceuticals 0.29%

Catalent Pharma Solutions, Inc., PIK	9.500	04-15-15	2,908,018	2,987,989

PharmaNet Development Group, Inc. (S)	10.875	04-15-17	1,255,000	1,383,638

Valeant Pharmaceuticals International (S)	7.000	10-01-20	240,000	248,100

Industrials 4.03%				63,419,876

Aerospace & Defense 0.48%

Bombardier, Inc. (S)	7.750	03-15-20	730,000	792,050

Colt Defense LLC/Colt Finance Corp. (S)	8.750	11-15-17	425,000	337,875

Hawker Beechcraft Acquisition Company LLC	8.500	04-01-15	2,025,000	1,625,063

Kratos Defense & Security Solutions, Inc.	10.000	06-01-17	2,010,000	2,266,275

TransDigm, Inc. (S)	7.750	12-15-18	2,315,000	2,494,413

Airlines 0.96%

Delta Air Lines, Inc. (S)	12.250	03-15-15	1,595,000	1,826,275

Delta Air Lines, Inc. (S)	9.500	09-15-14	1,967,000	2,144,030

Delta Air Lines, Inc.	6.821	08-10-22	1,279,382	1,349,748

Global Aviation Holdings, Inc.	14.000	08-15-13	3,015,000	3,474,788

United Air Lines, Inc.	12.750	07-15-12	726,739	812,131

United Air Lines, Inc. (S)	12.000	11-01-13	2,400,000	2,646,000


16	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Airlines (continued)

United Air Lines, Inc.	10.400	11-01-16	$741,281	$859,886

United Air Lines, Inc. (S)	9.875	08-01-13	347,000	377,363

United Air Lines, Inc.	9.750	01-15-17	1,444,263	1,664,513

Building Materials 0.05%

Rearden G Holdings EINS GmbH (S)	7.875	03-30-20	490,000	516,950

Voto-Votorantim Overseas Trading
Operations NV (S)	6.625	09-25-19	330,000	344,025

Building Products 0.17%

Nortek, Inc. (S)	10.000	12-01-18	2,535,000	2,706,113

Commercial Services & Supplies 0.44%

Avis Budget Car Rental LLC	9.625	03-15-18	825,000	921,938

Covanta Holding Corp.	7.250	12-01-20	3,780,000	3,969,049

Garda World Security Corp. (S)	9.750	03-15-17	1,820,000	1,956,500

Construction & Engineering 0.28%

Aeropuertos Argentina 2000 SA (S)	10.750	12-01-20	2,230,550	2,397,841

Tutor Perini Corp. (S)	7.625	11-01-18	1,960,000	2,031,050

Electrical Equipment 0.41%

Coleman Cable, Inc.	9.000	02-15-18	1,700,000	1,772,250

WPE International Cooperatief UA (S)	10.375	09-30-20	4,495,000	4,629,850

Industrial Conglomerates 0.42%

Grupo KUO SAB de CV (S)	9.750	10-17-17	3,315,000	3,613,350

Hutchison Whampoa International, Ltd. (S)	4.625	09-11-15	850,000	901,240

Odebrecht Finance, Ltd. (S)	7.500	09-14-15	1,815,000	1,837,688

Smiths Group PLC (S)	7.200	05-15-19	190,000	210,830

Machinery 0.15%

American Railcar Industries, Inc.	7.500	03-01-14	1,125,000	1,153,125

Thermadyne Holdings Corp. (S)	9.000	12-15-17	1,195,000	1,262,219

Marine 0.13%

Navios Maritime Holdings, Inc./Navios Maritime
Finance II U.S., Inc. (S)	8.125	02-15-19	2,075,000	2,075,000

Road & Rail 0.48%

Kansas City Southern de Mexico SA de CV	8.000	02-01-18	945,000	1,032,413

RailAmerica, Inc.	9.250	07-01-17	972,000	1,076,490

Swift Services Holdings, Inc. (S)	10.000	11-15-18	2,205,000	2,414,475

Western Express, Inc. (S)	12.500	04-15-15	3,145,000	3,050,650

Transportation Infrastructure 0.06%

SCF Capital, Ltd. (S)	5.375	10-27-17	900,000	876,420

Information Technology 0.67%				10,592,438

Communications Equipment 0.07%

CommScope, Inc. (S)	8.250	01-15-19	995,000	1,032,313

Electronic Equipment, Instruments & Components 0.12%

Freescale Semiconductor, Inc. (S)	9.250	04-15-18	1,745,000	1,945,675

IT Services 0.20%

Brightstar Corp. (S)	9.500	12-01-16	2,415,000	2,584,050

Equinix, Inc.	8.125	03-01-18	555,000	602,175


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	17


		Maturity
	Rate (%)	date	Par value	Value
Software 0.28%

First Data Corp. (S)	8.875	08-15-20	$2,175,000	$2,381,625

Vangent, Inc.	9.625	02-15-15	2,160,000	2,046,600

Materials 5.33%				83,833,181

Chemicals 0.53%

American Pacific Corp.	9.000	02-01-15	2,340,000	2,299,050

Braskem Finance, Ltd. (S)	7.375	— (Q)	1,220,000	1,210,843

Braskem Finance, Ltd. (S)	7.000	05-07-20	1,605,000	1,657,163

Ferro Corp.	7.875	08-15-18	1,665,000	1,773,225

Nova Chemicals Corp.	6.500	01-15-12	125,000	128,750

Rhodia SA (S)	6.875	09-15-20	1,245,000	1,274,569

Containers & Packaging 1.27%

Ball Corp.	6.750	09-15-20	580,000	607,550

Ball Corp.	6.625	03-15-18	195,000	201,094

Berry Plastics Corp. (S)	9.750	01-15-21	1,255,000	1,258,138

Berry Plastics Corp.	8.250	11-15-15	2,680,000	2,870,950

Cascades, Inc.	7.875	01-15-20	545,000	568,844

Graham Packaging Company LP/GPC Capital
Corp. I	9.875	10-15-14	375,000	388,125

Graham Packaging Company LP/GPC Capital
Corp. I	8.250	01-01-17	1,455,000	1,556,850

Graham Packaging Company LP/GPC Capital
Corp. I	8.250	10-01-18	490,000	527,975

Graphic Packaging International, Inc.	9.500	06-15-17	1,505,000	1,670,550

Graphic Packaging International, Inc.	7.875	10-01-18	283,000	304,225

Owens-Brockway Glass Container, Inc.	7.375	05-15-16	4,700,000	5,123,000

Packaging Dynamics Corp. (S)	8.750	02-01-16	1,320,000	1,351,350

Polymer Group, Inc. (S)	7.750	02-01-19	480,000	499,800

Sealed Air Corp.	7.875	06-15-17	2,065,000	2,298,808

U.S. Corrugated, Inc.	10.000	06-12-13	715,000	700,700

Metals & Mining 2.08%

China Oriental Group Company, Ltd. (S)	7.000	11-17-17	1,750,000	1,706,250

CSN Islands XI Corp. (S)	6.875	09-21-19	510,000	561,000

CSN Islands XII Corp. (S)	7.000	— (Q)	1,950,000	1,906,125

Essar Steel Algoma, Inc. (S)	9.375	03-15-15	1,935,000	1,935,000

Gerdau Holdings, Inc. (S)	7.000	01-20-20	790,000	872,950

Gerdau Trade, Inc. (S)	5.750	01-30-21	3,615,000	3,615,000

Metinvest BV (S)	8.750	02-14-18	3,315,000	3,381,300

Midwest Vanadium Pty, Ltd. (S)	11.500	02-15-18	5,400,000	5,562,000

Rain CII Carbon LLC (S)	8.000	12-01-18	7,890,000	8,422,575

Rio Tinto Finance USA, Ltd.	9.000	05-01-19	1,150,000	1,519,724

Rio Tinto Finance USA, Ltd.	7.125	07-15-28	1,465,000	1,788,447

Teck Resources, Ltd.	10.750	05-15-19	505,000	650,592

Vale Overseas, Ltd.	4.625	09-15-20	855,000	839,289

Paper & Forest Products 1.45%

ABI Escrow Corp. (S)	10.250	10-15-18	2,300,000	2,576,000

Celulosa Arauco y Constitucion SA (S)	5.000	01-21-21	1,110,000	1,066,578

Clearwater Paper Corp.	10.625	06-15-16	195,000	222,788

Grupo Papelero Scribe SA (S)	8.875	04-07-20	940,000	907,100


18	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Paper & Forest Products (continued)

Mercer International, Inc. (S)	9.500	12-01-17	$1,605,000	$1,733,400

NewPage Corp.	11.375	12-31-14	5,995,000	5,980,013

PE Paper Escrow GmbH (S)	12.000	08-01-14	515,000	594,825

Pope & Talbot, Inc. (H)	8.375	06-01-13	1,000,000	100

Pope & Talbot, Inc. (H)	8.375	06-01-13	500,000	50

Sappi Papier Holding AG (S)	7.500	06-15-32	3,280,000	2,960,633

Suzano Trading, Ltd. (S)	5.875	01-23-21	3,645,000	3,511,958

Verso Paper Holdings LLC/Verso Paper, Inc.	11.500	07-01-14	510,000	562,275

Verso Paper Holdings LLC/Verso Paper, Inc. (S)	8.750	02-01-19	2,570,000	2,685,650

Telecommunication Services 3.77%				59,283,936

Communications Equipment 0.09%

Sable International Finance, Ltd. (S)	7.750	02-15-17	585,000	623,025

SingTel Group Treasury Pte, Ltd. (SGD)(D)	3.488	04-08-20	1,000,000	791,707

Diversified Telecommunication Services 2.01%

Affinion Group Holdings, Inc. (S)	11.625	11-15-15	$3,125,000	3,242,188

AT&T, Inc.	6.700	11-15-13	1,240,000	1,403,320

Axtel SAB de CV (S)	9.000	09-22-19	3,000,000	2,887,500

Axtel SAB de CV (S)	7.625	02-01-17	2,715,000	2,579,250

Broadview Networks Holdings, Inc.	11.375	09-01-12	2,345,000	2,336,206

Cincinnati Bell, Inc.	8.750	03-15-18	2,305,000	2,209,919

Frontier Communications Corp.	8.500	04-15-20	1,245,000	1,381,950

Frontier Communications Corp.	7.125	03-15-19	710,000	738,400

GXS Worldwide, Inc.	9.750	06-15-15	2,345,000	2,386,038

Intelsat Bermuda, Ltd.	11.250	02-04-17	4,060,000	4,491,375

Level 3 Financing, Inc.	10.000	02-01-18	280,000	285,250

Virgin Media Secured Finance PLC (S)	5.250	01-15-21	1,260,000	1,274,625

West Corp.	11.000	10-15-16	4,895,000	5,329,431

Wind Acquisition Finance SA (S)	7.250	02-15-18	1,060,000	1,094,450

Wireless Telecommunication Services 1.67%

American Tower Corp.	7.000	10-15-17	1,310,000	1,478,598

Bakrie Telecom Pte, Ltd. (S)	11.500	05-07-15	3,160,000	3,428,600

CC Holdings GS V LLC/Crown Castle
GS III Corp. (S)	7.750	05-01-17	870,000	960,263

Digicel Group, Ltd. (S)	8.875	01-15-15	1,680,000	1,747,200

Digicel, Ltd. (S)	8.250	09-01-17	3,180,000	3,323,100

Nextel Communications, Inc., Series D	7.375	08-01-15	4,940,000	4,952,350

NII Capital Corp.	10.000	08-15-16	695,000	787,088

NII Capital Corp.	8.875	12-15-19	910,000	1,005,550

SBA Tower Trust (S)	5.101	04-15-17	1,495,000	1,581,122

Sprint Capital Corp.	8.750	03-15-32	3,325,000	3,458,000

Sprint Capital Corp.	8.375	03-15-12	3,305,000	3,507,431

Utilities 0.51%				8,099,850

Electric Utilities 0.24%

Appalachian Power Company	5.000	06-01-17	900,000	943,513

Dubai Electricity & Water Authority (S)	7.375	10-21-20	1,910,000	1,785,850

United Maritime Group LLC	11.750	06-15-15	1,100,000	1,133,000


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	19


		Maturity
	Rate (%)	date	Par value	Value
Independent Power Producers & Energy Traders 0.17%

AES Andres Dominicana/Itabo Dominicana (S)	9.500	11-12-20	$1,985,000	$2,128,913

Listrindo Capital BV (S)	9.250	01-29-15	455,000	509,586

Water Utilities 0.10%

Cia de Saneamento Basico do Estado de
Sao Paulo (S)	6.250	12-16-20	1,595,000	1,598,988

Foreign Government Obligations 26.05%				$410,196,420

(Cost $398,229,573)

Argentina 0.71%				11,197,677

Provincia de Buenos Aires (S)	11.750	10-05-15	$2,960,000	3,041,400

Provincia de Buenos Aires (S)	10.875	01-26-21	2,095,000	1,958,289

Provincia de Cordoba (S)	12.375	08-17-17	2,245,000	2,329,188

Republic of Argentina	8.750	06-02-17	3,840,000	3,868,800

Australia 1.01%				15,947,282

New South Wales Treasury Corp. (AUD)(D)	6.000	04-01-16	4,915,000	5,064,956

New South Wales Treasury Corp., Series 12
(AUD)(D)	6.000	05-01-12	10,571,000	10,882,326

Brazil 0.37%				5,799,693

Federative Republic of Brazil (BRL)(D)	10.250	01-10-28	9,405,000	5,799,693

Canada 5.01%				78,936,254

Canada Housing Trust (CAD)(D)	4.600	09-15-11	5,545,000	5,810,621

Government of Canada (CAD)(D)	4.000	06-01-16	12,390,000	13,553,057

Government of Canada (CAD)(D)	3.000	12-01-15	14,455,000	15,131,218

Government of Canada (CAD)(D)	2.500	06-01-15	11,710,000	12,053,267

Ontario School Boards Financing Corp.,
Series 01A2 (CAD)(D)	6.250	10-19-16	3,815,000	4,464,871

Province of Ontario (NZD)(D)	6.250	06-16-15	12,870,000	10,229,119

Province of Ontario (CAD)(D)	4.750	06-02-13	4,610,000	5,017,643

Province of Ontario (CAD)(D)	4.500	03-08-15	6,000,000	6,586,074

Province of Ontario	3.150	12-15-17	$3,495,000	3,468,931

Province of Quebec (CAD)(D)	5.250	10-01-13	2,370,000	2,621,453

Chile 0.07%				1,092,938

Republic of Chile	3.875	08-05-20	$1,125,000	1,092,938

Colombia 0.01%				118,085

Republic of Colombia	10.000	01-23-12	110,000	118,085

Indonesia 1.53%				24,029,500

Republic of Indonesia (IDR)(D)	14.250	06-15-13	12,500,000,000	1,623,205

Republic of Indonesia (IDR)(D)	12.500	03-15-13	23,855,000,000	2,981,741

Republic of Indonesia (IDR)(D)	10.000	07-15-17	36,360,000,000	4,430,512

Republic of Indonesia (IDR)(D)	9.500	06-15-15	92,970,000,000	11,047,174

Republic of Indonesia (IDR)(D)	9.500	07-15-31	22,900,000,000	2,484,612

Republic of Indonesia (S)	5.875	03-13-20	$1,365,000	1,462,256

Malaysia 0.53%				8,406,748

Government of Malaysia (MYR)(D)	3.835	08-12-15	25,250,000	8,406,748


20	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Mexico 0.60%				$9,422,742

Government of Mexico	8.125	12-30-19	$360,000	462,600

Government of Mexico (MXN)(D)	7.500	06-21-12	84,827,300	7,245,292

Government of Mexico	5.875	02-17-14	$550,000	605,000

Government of Mexico	5.625	01-15-17	520,000	573,300

Government of Mexico, Series A	6.375	01-16-13	490,000	536,550

New Zealand 2.16%				34,008,423

Government of New Zealand, Series 1217
(NZD)(D)	6.000	12-15-17	42,960,000	34,008,423

Norway 1.16%				18,197,579

Government of Norway (NOK)(D)	5.000	05-15-15	53,377,000	10,231,672

Government of Norway (NOK)(D)	4.500	05-22-19	42,073,000	7,965,907

Philippines 1.98%				31,159,502

Republic of Philippines (PHP)(D)	8.125	12-16-35	653,520,160	14,999,734

Republic of Philippines (PHP)(D)	6.250	01-14-36	72,000,000	1,486,662

Republic of Philippines (PHP)(D)	5.875	12-16-20	321,278,240	6,968,495

Republic of Philippines (PHP)(D)	4.950	01-15-21	342,000,000	7,704,611

Singapore 1.69%				26,607,731

Republic of Singapore (SGD)(D)	3.250	09-01-20	17,560,000	14,551,231

Republic of Singapore (SGD)(D)	1.375	10-01-14	14,975,000	12,056,500

South Korea 2.60%				40,984,652

Korea Development Bank	4.375	08-10-15	$485,000	497,810

Korea Development Bank (SGD)(D)	2.440	05-25-12	2,500,000	1,991,313

Republic of Korea (KRW)(D)	5.000	06-10-20	14,205,000,000	12,900,403

Republic of Korea, Series 1212 (KRW)(D)	4.250	12-10-12	6,535,000,000	5,847,802

Republic of Korea, Series 1809 (KRW)(D)	5.750	09-10-18	20,780,000,000	19,747,324

Sweden 2.43%				38,292,232

Kingdom of Sweden (SEK)(D)	3.750	08-12-17	120,075,000	19,553,706

Kingdom of Sweden, Series 1047 (SEK)(D)	5.000	12-01-20	67,615,000	12,127,485

Swedish Export Credit Company (NZD)(D)	7.625	06-30-14	8,075,000	6,611,041

Turkey 0.09%				1,435,000

Republic of Turkey	6.750	05-30-40	$1,435,000	1,435,000

Ukraine 0.18%				2,855,890

Government of Ukraine (S)	7.950	02-23-21	1,365,000	1,366,937

Government of Ukraine (S)	7.750	09-23-20	980,000	982,450

Government of Ukraine (S)	6.580	11-21-16	515,000	506,503

United Kingdom 3.92%				61,704,492

Government of United Kingdom (GBP)(D)	4.750	03-07-20	30,035,000	53,095,252

Government of United Kingdom (GBP)(D)	3.750	09-07-20	5,271,000	8,609,240


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	21


		Maturity
	Rate (%)	date	Par value	Value
Capital Preferred Securities 1.75%				$27,610,863

(Cost $26,028,997)

Financials 1.75%				27,610,863

Commercial Banks 1.72%

Banponce Trust I, Series A	8.327	02-01-27	$750,000	544,276

BB&T Capital Trust IV (6.820% to 6-12-37
then 3 month LIBOR + 2.110% quarterly or
1 month LIBOR + 2.108%)	6.820	06-12-57	1,175,000	1,195,082

Fifth Third Capital Trust IV (6.500% to 4-15-17
then 3 month LIBOR + 1.368%)	6.500	04-15-37	3,345,000	3,261,375

First Midwest Capital Trust I, Series B	6.950	12-01-33	1,155,000	975,975

Keycorp Capital VII	5.700	06-15-35	2,515,000	2,145,589

SunTrust Capital VIII (6.100% to 12-15-36,
then 1 month LIBOR + 1.965%)	6.100	12-01-66	4,070,000	3,892,141

Wachovia Capital Trust III (5.800% to 3-15-11,
then greater of 3 month LIBOR + 0.93% or
5.570% quarterly)	5.800	03-29-49	16,635,000	15,137,850

Diversified Financial Services 0.03%

Susquehanna Capital II	11.000	03-23-40	415,000	458,575

Convertible Bonds 3.64%				$57,369,268

(Cost $46,829,780)

Consumer Discretionary 1.42%				22,395,888

Automobiles 0.71%

Ford Motor Company	4.250	11-15-16	$6,125,000	11,193,438

Household Durables 0.23%

D.R. Horton, Inc.	2.000	05-15-14	660,000	754,050

Lennar Corp. (S)	2.750	12-15-20	2,500,000	2,887,500

Media 0.48%

XM Satellite Radio, Inc. (S)	7.000	12-01-14	5,580,000	7,560,900

Consumer Staples 0.07%				1,152,200

Tobacco 0.07%

Alliance One International, Inc.	5.500	07-15-14	1,120,000	1,152,200

Energy 0.16%				2,453,325

Energy Equipment & Services 0.05%

Newpark Resources, Inc.	4.000	10-01-17	750,000	757,500

Oil, Gas & Consumable Fuels 0.11%

Chesapeake Energy Corp.	2.500	05-15-37	660,000	735,075

Chesapeake Energy Corp.	2.250	12-15-38	1,050,000	960,750

Financials 0.69%				10,911,301

Capital Markets 0.37%

Ares Capital Corp. (S)	5.750	02-01-16	3,550,000	3,816,250

Janus Capital Group, Inc.	3.250	07-15-14	955,000	1,166,294

MF Global Holdings, Ltd.	1.875	02-01-16	775,000	814,719

Real Estate Investment Trusts 0.32%

Annaly Capital Management, Inc.	4.000	02-15-15	1,440,000	1,677,600

Developers Diversified Realty Corp.	1.750	11-15-40	2,500,000	2,675,000

ProLogis	3.250	03-15-15	600,000	700,500


22	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Thrifts & Mortgage Finance 0.00%

The PMI Group, Inc.	4.500	04-15-20	$75,000	$60,938

Health Care 0.27%				4,263,723

Biotechnology 0.22%

Dendreon Corp.	2.875	01-15-16	3,029,000	3,007,191

Gilead Sciences, Inc. (S)	1.000	05-01-14	455,000	482,869

Health Care Equipment & Supplies 0.05%

Teleflex, Inc.	3.875	08-01-17	690,000	773,663

Industrials 0.47%				7,293,905

Airlines 0.32%

Continental Airlines, Inc.	4.500	01-15-15	910,000	1,351,350

UAL Corp.	4.500	06-30-21	3,465,000	3,564,792

Trading Companies & Distributors 0.15%

United Rentals, Inc.	4.000	11-15-15	815,000	2,377,763

Information Technology 0.24%				3,805,338

Internet Software & Services 0.24%

Equinix, Inc.	4.750	06-15-16	2,930,000	3,805,338

Materials 0.06%				970,188

Containers & Packaging 0.06%

Owens-Brockway Glass Container, Inc. (S)	3.000	06-01-15	950,000	970,188

Telecommunication Services 0.26%				4,123,400

Wireless Telecommunication Services 0.26%

Clearwire Communications LLC/Clearwire
Finance, Inc. (S)	8.250	12-01-40	3,890,000	4,123,400

Municipal Bonds 3.70%				$58,216,981

(Cost $58,159,276)

California 1.02%				16,098,295

Bay Area Toll Authority	7.043	04-01-50	$1,110,000	1,148,217

California State Public Works Board, Series G2	8.361	10-01-34	1,965,000	2,085,906

City of Long Beach	7.282	11-01-30	480,000	456,970

County of Siskiyou	6.100	06-01-37	760,000	710,805

Los Angeles County Public Works
Financing Authority	7.488	08-01-33	1,880,000	1,839,542

Los Angeles Department of Water & Power	6.603	07-01-50	2,030,000	2,134,241

Los Angeles Department of Water & Power	5.516	07-01-27	3,000,000	2,825,730

Modesto Irrigation District Financing Authority	7.204	10-01-40	1,220,000	1,246,169

Palo Alto Unified School District	5.862	07-01-27	500,000	514,475

San Diego County Regional Airport Authority	6.628	07-01-40	480,000	473,712

State of California	7.300	10-01-39	1,690,000	1,778,100

State of California	6.200	10-01-19	845,000	884,428

District of Columbia 0.22%				3,471,341

District of Columbia Water & Sewer Authority	5.522	10-01-44	2,035,000	2,014,019

Metropolitan Washington Airports Authority,
Series D	8.000	10-01-47	1,505,000	1,457,322


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	23


		Maturity
	Rate (%)	date	Par value	Value
Florida 0.28%				$4,377,260

County of Sarasota	7.401	10-01-40	$3,130,000	3,389,070

Florida Governmental Utility Authority	7.084	10-01-40	1,000,000	988,190

Georgia 0.14%				2,212,945

Municipal Electric Authority of Georgia	7.055	04-01-57	2,280,000	2,212,945

Hawaii 0.04%				677,902

University of Hawaii	6.034	10-01-40	720,000	677,902

Illinois 0.21%				3,312,550

City of Chicago	7.168	01-01-41	1,275,000	1,257,533

Northern Illinois Municipal Power Agency	7.820	01-01-40	1,850,000	2,055,017

Massachusetts 0.03%				509,977

Commonwealth of Massachusetts	5.731	06-01-40	490,000	509,977

Michigan 0.08%				1,298,634

County of Wayne	10.000	12-01-40	1,230,000	1,298,634

Nevada 0.03%				518,780

County of Clark	6.000	07-01-28	530,000	518,780

New Jersey 0.16%				2,493,868

New Jersey Transportation Trust
Fund Authority	6.104	12-15-28	2,520,000	2,493,868

New York 0.34%				5,310,782

City of New York	6.271	12-01-37	1,230,000	1,287,478

City of New York	5.517	10-01-37	1,995,000	1,887,849

City of New York	5.206	10-01-31	990,000	925,175

Port Authority of New York & New Jersey	5.647	11-01-40	1,260,000	1,210,280

Ohio 0.31%				4,853,113

American Municipal Power-Ohio, Inc.	8.084	02-15-50	2,450,000	2,774,209

American Municipal Power-Ohio, Inc.	5.939	02-15-47	2,400,000	2,078,904

Oklahoma 0.13%				2,073,863

Grand River Dam Authority	7.155	06-01-40	2,025,000	2,073,863

Pennsylvania 0.10%				1,569,136

Pennsylvania Turnpike Commission	5.511	12-01-45	1,775,000	1,569,136

Texas 0.29%				4,475,874

City of San Antonio	5.808	02-01-41	2,140,000	2,210,492

Dallas Area Rapid Transit	5.022	12-01-48	1,390,000	1,249,276

Dallas-Fort Worth International Airport
Facilities Improvement	7.000	01-01-16	1,015,000	1,016,106

Virginia 0.14%				2,176,327

Virginia Resources Authority	6.290	11-01-40	2,175,000	2,176,327

Washington 0.18%				2,786,334

King County Public Hospital District No. 1	8.000	06-15-40	2,250,000	2,290,838

Washington State Convention Center Public
Facilities District	6.790	07-01-40	505,000	495,496


24	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Term Loans (M) 4.29%				$67,459,690

(Cost $65,683,047)

Consumer Discretionary 1.35%				21,220,492

Hotels, Restaurants & Leisure 0.83%

CCM Merger, Inc. (T)	—	02-11-17	$985,000	997,005

Harrah’s Operating Company, Inc.	3.303	01-28-15	6,775,000	6,276,556

Kalispel Tribal Economic Authority (T)	—	02-22-17	3,900,000	3,822,000

Las Vegas Sands LLC (T)	—	11-23-16	1,623,666	1,615,838

Las Vegas Sands LLC (T)	—	11-23-16	332,991	331,386

Media 0.40%

Clear Channel Communications, Inc. (T)	—	01-28-16	4,635,000	4,243,343

Dex Media West, Inc.	7.000	10-24-14	589,693	540,201

Vertis, Inc.	12.000	12-31-15	1,585,000	1,585,000

Multiline Retail 0.12%

Michaels Stores, Inc.	2.584	10-31-13	1,815,129	1,809,163

Consumer Staples 0.32%				4,925,000

Food Products 0.32%

Del Monte Foods Company (T)	—	03-01-12	4,925,000	4,925,000

Financials 0.27%				4,239,328

Real Estate Management & Development 0.27%

Realogy Corp.	13.500	10-15-17	365,000	402,184

Realogy Corp. (T)	—	10-10-13	3,552,539	3,407,901

Realogy Corp. (T)	—	10-10-13	447,461	429,243

Health Care 0.35%				5,549,902

Health Care Equipment & Supplies 0.03%

Bausch & Lomb, Inc. (EUR)(D)	4.122	04-24-15	397,700	547,434

Health Care Providers & Services 0.32%

Cardinal Health, Inc.	2.512	04-10-14	$3,106,455	3,067,624

Community Health Systems, Inc.	2.560	07-25-14	1,832,483	1,817,594

Community Health Systems, Inc.	2.560	07-25-14	118,211	117,250

Industrials 0.79%				12,437,888

Aerospace & Defense 0.25%

Hawker Beechcraft Acquisition Company LLC	2.303	03-26-14	247,421	221,094

Hawker Beechcraft Acquisition Company LLC	2.273	03-26-14	4,127,815	3,688,590

Airlines 0.45%

Delta Airlines, Inc.	3.514	04-30-14	3,409,875	3,353,043

US Airways Group, Inc.	2.762	03-21-14	4,120,000	3,791,871

Trading Companies & Distributors 0.09%

Bourland & Leverich Supply Company LLC	11.000	08-13-15	1,343,000	1,383,290

Information Technology 0.25%				3,881,954

Software 0.25%

First Data Corp.	3.012	09-24-14	4,100,000	3,881,954

Materials 0.25%				3,977,188

Containers & Packaging 0.25%

Consolidated Container Company LLC (T)	—	09-28-14	4,450,000	3,977,188


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	25


		Maturity
	Rate (%)	date	Par value	Value
Telecommunication Services 0.41%				$6,487,469

Diversified Telecommunication Services 0.41%

Intelsat Jackson Holdings SA	5.250	04-02-18	$2,600,000	2,617,469

Intelsat Jackson Holdings SA	3.303	02-02-14	4,000,000	3,870,000

Utilities 0.30%				4,740,469

Electric Utilities 0.30%

Texas Competitive Electric Holdings
Company LLC (T)	—	10-10-14	5,625,000	4,740,469

Collateralized Mortgage Obligations 2.74%				$43,159,308

(Cost $36,216,833)

Commercial & Residential 2.48%				39,108,393

American Home Mortgage Assets
Series 2006-6, Class XP IO	2.372	12-25-46	$14,294,906	930,901

American Tower Trust
Series 2007-1A, Class C (S)	5.615	04-15-37	430,000	456,219

Countrywide Alternative Loan Trust
Series 2006-OA12, Class X IO	2.828	09-20-46	8,757,417	583,765

Downey Savings & Loan Association Mortgage
Loan Trust
Series 2005-AR2, Class X2 IO	2.418	03-19-45	29,081,198	1,224,301

Global Tower Partners Acquisition Partners LLC
Series 2007-1A, Class G (S)	7.873	05-15-37	3,130,000	3,235,367

Greenwich Capital Commercial Funding Corp.
Series 2006-GG7, Class A4 (P)	5.882	07-10-38	3,310,000	3,635,230

GSR Mortgage Loan Trust
Series 2005-AR6, Class 3A1 (P)	2.762	09-25-35	3,524,526	3,227,416

Harborview Mortgage Loan Trust
Series 2005-8, Class 1X IO	2.345	09-19-35	9,197,250	488,280

Harborview Mortgage Loan Trust
Series 2007-3, Class ES IO	0.349	05-19-47	18,831,143	123,344

Harborview Mortgage Loan Trust
Series 2007-4, Class ES IO	0.350	07-19-47	22,573,771	122,124

Harborview Mortgage Loan Trust
Series 2007-6, Class ES IO (S)	0.342	08-19-37	15,634,991	98,500

IndyMac Index Mortgage Loan Trust
Series 2005-AR18, Class 1X IO	2.217	10-25-36	24,807,787	1,116,350

IndyMac Index Mortgage Loan Trust
Series 2005-AR18, Class 2X IO	1.917	10-25-36	25,805,470	1,161,246

JPMorgan Chase Commercial Mortgage
Securities Corp.
Series 2006-LDP7, Class AM (P)	5.875	04-15-45	4,461,000	4,749,212

LB–UBS Commercial Mortgage Trust
Series 2006-C6, Class AM	5.413	09-15-39	2,925,000	3,062,194

Morgan Stanley Capital I
Series 2007-IQ13, Class A4	5.364	03-15-44	2,725,000	2,844,401

Morgan Stanley Mortgage Loan Trust
Series 2004-8AR, Class 4A1 (P)	2.705	10-25-34	2,360,691	2,220,955

Morgan Stanley Mortgage Loan Trust
Series 2004-9, Class 1A (P)	5.994	11-25-34	1,722,112	1,759,708

Washington Mutual, Inc.
Series 2005-AR13, Class X IO	1.561	10-25-45	93,709,236	4,662,972


26	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


		Maturity
	Rate (%)	date	Par value	Value
Commercial & Residential (continued)

Washington Mutual, Inc.
Series 2005-AR13, Class B1 (P)	0.861	10-25-45	$1,879,815	$330,810

Washington Mutual, Inc.
Series 2005-AR6, Class B1 (P)	0.861	04-25-45	3,055,076	510,925

Wells Fargo Mortgage Backed Securities Trust
Series 2005-AR5, Class 1A1 (P)	5.089	04-25-35	2,672,121	2,564,173

U.S. Government Agency 0.26%				4,050,915

Federal National Mortgage Association
Series 398, Class C3 IO	4.500	05-25-39	3,733,516	851,183

Federal National Mortgage Association
Series 402, Class 3 IO	4.000	11-25-39	2,822,044	628,059

Federal National Mortgage Association
Series 402, Class 4 IO	4.000	10-25-39	4,916,372	1,045,886

Federal National Mortgage Association
Series 402, Class 7 IO	4.500	11-25-39	6,816,506	1,525,787

Asset Backed Securities 0.70%				$10,972,041

(Cost $9,881,744)

Asset Backed Securities 0.70%				10,972,041

Dominos Pizza Master Issuer LLC
Series 2007-1, Class M1 (S)	7.629	04-25-37	$3,545,000	3,655,781

Dominos Pizza Master Issuer LLC
Series 2007-1, Class A2 (S)	5.261	04-25-37	4,818,000	4,962,540

Ford Auto Securitization Trust
Series 2010-R3A, Class A1 (CAD)(D)(S)	1.926	06-15-13	2,285,728	2,353,720

			Shares	Value
Preferred Securities 3.32%				$52,252,408

(Cost $49,292,549)

Consumer Discretionary 0.45%				7,062,625

Automobiles 0.08%

General Motors Company, Series B, 4.750%			24,778	1,260,705

Hotels, Restaurants & Leisure 0.37%

Greektown Superholdings, Inc. (I)			58,712	5,801,920

Energy 0.09%				1,479,703

Oil, Gas & Consumable Fuels 0.09%

Apache Corp., Series D, 6.000%			21,722	1,479,703

Financials 2.78%				43,710,080

Commercial Banks 1.31%

Wells Fargo & Company, Series L, 7.500%			7,435	7,658,050

Zions Bancorporation, Series C, 9.500%			498,200	12,998,038

Diversified Financial Services 1.28%

Bank of America Corp., Series L, 7.250%			5,062	5,082,248

Citigroup Capital XIII (7.875% to 10-30-15,
then 3 month LIBOR + 6.370%)			257,710	6,971,056

Citigroup, Inc., 7.500%			60,480	8,134,560


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	27


	Shares	Value
Insurance 0.14%

Hartford Financial Services Group, Inc., Series F, 7.250%	75,800	$2,097,386

Real Estate Investment Trusts 0.05%

FelCor Lodging Trust, Inc., Series A, 1.950%	29,108	768,742

Common Stocks 2.09%		$32,950,871

(Cost $27,734,634)

Consumer Discretionary 0.48%		7,525,196

Auto Components 0.00%

Lear Corp.	15	1,587

Hotels, Restaurants & Leisure 0.02%

Greektown Superholdings, Inc. (I)	3,048	301,203

Media 0.46%

Charter Communications, Inc., Class A (I)	84,100	3,849,257

Citadel Broadcasting Corp., Class A (I)	3,927	136,463

Citadel Broadcasting Corp., Class B (I)	26,708	928,103

Dex One Corp. (I)	5,821	30,677

SuperMedia, Inc. (I)	11,050	93,041

Vertis Holdings, Inc. (I)	110,794	2,184,865

Financials 1.11%		17,451,089

Capital Markets 0.23%

Apollo Investment Corp.	82,797	1,024,199

Ares Capital Corp.	146,967	2,620,422

Commercial Banks 0.16%

Ameris Bancorp (I)	45,098	455,039

First Michigan Bank (I)(R)	372,222	2,050,922

Real Estate Investment Trusts 0.68%

Chimera Investment Corp.	285,470	1,230,376

Homburg Invest, Inc., Class A	294,126	3,454,251

Invesco Mortgage Capital, Inc.	78,817	1,839,589

MFA Financial, Inc.	141,850	1,201,470

Plum Creek Timber Company, Inc.	31,969	1,341,419

Weyerhaeuser Company	65,914	1,608,961

Thrifts & Mortgage Finance 0.04%

Capitol Federal Financial, Inc.	49,402	624,441

Health Care 0.18%		2,906,961

Health Care Providers & Services 0.03%

Laboratory Corp. of America Holdings (I)	4,863	438,302

Pharmaceuticals 0.15%

Johnson & Johnson	40,180	2,468,659

Materials 0.31%		4,930,108

Chemicals 0.15%

LyondellBasell Industries, Class A (I)	62,290	2,372,003

Containers & Packaging 0.16%

Smurfit-Stone Container Corp. (I)	66,548	2,558,105


28	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements


			Shares	Value
Telecommunication Services 0.01%				$137,517

Diversified Telecommunication Services 0.01%

Chunghwa Telecom Company, Ltd., ADR			4,660	137,517

Warrants 0.11%				$1,747,300

(Cost $1,156,486)
Citadel Broadcasting Corp. (Expiration Date: 6-3-30; Strike Price $0.001) (I)			50,282	1,747,300

			Notional Par	Value

Options Purchased 0.17%				$2,728,315

(Cost $5,239,701)

Call Options 0.10%				1,605,113

Over the Counter Purchase Call on the AUD vs. USD
(Expiration Date: 7-7-11; Strike Price $1.05; Counterparty:
Royal Bank of Scotland) (I)			150,000,000	1,605,113

Put Options 0.07%				1,123,202

Over the Counter Purchase Put on the EUR vs. USD
(Expiration Date: 5-19-11; Strike Price $1.10; Counterparty:
RBC Dominion Securities) (I)			27,500,000	21,972

Over the Counter Purchase Put on the GBP vs. USD
(Expiration Date: 4-7-11; Strike Price $1.49; Counterparty:
UBS Securities, Inc.) (I)			75,000,000	76,934

Over the Counter Purchase Put on the USD vs. CAD
(Expiration Date: 9-30-11; Strike Price $0.94; Counterparty:
Goldman Sachs & Company) (I)			78,000,000	1,024,296

		Maturity
	Yield (%)*	date	Par value	Value
Short-Term Investments 7.88%				$124,100,000

(Cost $124,100,000)

Short-Term Securities 7.88%				124,100,000

Federal Home Loan Bank Discount Notes	0.070	03-01-11	$124,100,000	124,100,000

Total investments (Cost $1,541,998,306)† 103.27%			$1,626,031,164


Other assets and liabilities, net (3.27%)				($51,529,125)


Total net assets 100.00%			$1,574,502,039

The percentage shown for each investment category is the total value of that category as a percentage of the net assets of the Fund. All par values are denominated in U.S. Dollars unless otherwise indicated.


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	29

Notes to Schedule of Investments


Currency abbreviations
AUD — Australian Dollar	MYR — Malaysian Ringgit
BRL — Brazilian Real	MXN — Mexican Peso
CAD — Canadian Dollar	NOK — Norwegian Krone
EUR — Euro	NZD — New Zealand Dollar
GBP — Pound Sterling	PHP — Philippino Peso
IDR — Indonesian Rupiah	SEK — Swedish Krona
INR — Indian Rupee	SGD — Singapore Dollar
KRW — Korean Won

ADR American Depositary Receipts

IO Interest Only Security — Interest Tranche of Stripped Mortgage Pool

LIBOR London Interbank Offered Rate

PIK Payment-in-kind

(D) Par value of foreign bonds is expressed in local currency as shown parenthetically in security description.

(H) Non-income producing — Issuer is in default.

(I) Non-income producing security.

(M) Term loans are variable rate obligations. The coupon rate shown represents the rate at period end unless the investment is unsettled.

(P) Variable rate obligation. The coupon rate shown represents the rate at period end.

(Q) Perpetual bonds have no stated maturity date.

(R) Direct placement securities are restricted to resale and the Fund has limited rights to registration under the Securities Act of 1933.


			Value as a percentage	Value as of
Issuer, description	Acquisition date	Acquisition cost	of Fund’s net assets	2-28-11

First Michigan Bank	4-30-10	$2,233,332	0.13%	$2,050,922

(S) These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $360,089,770 or 22.87% of the Fund’s net assets as of 02-28-11.

(T) All or a portion of this position represents unsettled loan commitment. The coupon rate will be determined at time of settlement.

* Yield represents the annualized yield at the date of purchase.

† At 2-28-11, the aggregate cost of investment securities for federal income tax purposes was $1,544,910,647. Net unrealized appreciation aggregated $81,120,517, of which $102,463,259 related to appreciated investment securities and $21,342,742 related to depreciated investment securities.

The Fund had the following country concentration as a percentage of net assets on 2-28-11:


United States	50%
Canada	7%
United Kingdom	5%
Australia	3%
New Zealand	3%
Singapore	3%
Germany	3%
South Korea	3%
Sweden	2%
Brazil	2%
Cayman Islands	2%
Philippines	2%
Norway	2%
Indonesia	2%
Other Countries	6%
Short-Term Investments & Other	5%


30	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements

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 2-28-11 (unaudited)


Assets

Investments, at value (Cost $1,541,998,306)	$1,626,031,164
Cash	63,112
Foreign currency, at value (Cost $2,727,836)	2,770,189
Cash held at broker for futures contracts	3,266,400
Receivable for forward foreign currency exchange contracts (Note 3)	10,996,169
Receivable for fund shares sold	19,498,327
Dividends and interest receivable	23,805,810
Receivable due from adviser	5,315
Other receivables and prepaid expenses	70,746

Total assets	1,686,507,232

Liabilities

Payable for investments purchased	93,616,041
Payable for forward foreign currency exchange contracts (Note 3)	15,381,003
Payable for fund shares repurchased	2,137,798
Payable for futures variation margin (Note 3)	148,866
Distributions payable	249,168
Payable to affiliates
Accounting and legal services fees	30,969
Transfer agent fees	114,808
Trustees’ fees	784
Other liabilities and accrued expenses	325,756

Total liabilities	112,005,193

Net assets

Capital paid-in	$1,504,081,135
Accumulated distributions in excess of net investment income	(2,344,824)
Accumulated net realized loss on investments, futures contracts and
foreign currency transactions	(6,464,079)
Net unrealized appreciation on investments, futures contracts and
translation of assets and liabilities in foreign currencies	79,229,807

Net assets	$1,574,502,039


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	31

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

Statement of assets and liabilities (continued)


Net asset value per share

Based on net asset values and shares outstanding — the Fund has an
unlimited number of shares authorized with no par value
Class A ($320,906,722 ÷ 29,144,862 shares)	$11.01
Class C ($80,360,371 ÷ 7,298,291 shares)¹	$11.01
Class I ($191,493,037 ÷ 17,389,320 shares)	$11.01
Class NAV ($981,741,909 ÷ 89,199,640 shares)	$11.01

Maximum offering price per share

Class A (net asset value per share ÷ 95.5%)²	$11.53

¹Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

²On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced.


32	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements

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

Statement of operations For the six-month period ended 2-28-11
(unaudited)

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


Investment income

Interest	$39,151,785
Dividends	1,787,631
Less foreign taxes withheld	(281,919)

Total investment income	40,657,497

Expenses

Investment management fees (Note 5)	3,925,567
Distribution and service fees (Note 5)	573,585
Accounting and legal services fees (Note 5)	83,968
Transfer agent fees (Note 5)	251,896
Trustees’ fees (Note 5)	4,660
State registration fees (Note 5)	27,136
Printing and postage (Note 5)	10,093
Professional fees	41,592
Custodian fees	289,794
Registration and filing fees	24,187
Other	5,439

Total expenses before reductions and amounts recaptured	5,237,917
Net expense reductions and amounts recaptured (Note 5)	(108,384)

Total expenses	5,129,533

Net investment income	35,527,964

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments	9,989,990
Futures contracts (Note 3)	2,939,536
Foreign currency transactions	(12,480,478)

	449,048
Change in net unrealized appreciation (depreciation) of
Investments	56,361,993
Futures contracts (Note 3)	(561,565)
Translation of assets and liabilities in foreign currencies	1,116,808

	56,917,236

Net realized and unrealized gain	57,366,284

Increase in net assets from operations	$92,894,248


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	33

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

Statements of changes in net assets


	Six months
	ended	Year
	2-28-11	ended
	(Unaudited)	8-31-10

Increase (decrease) in net assets

From operations
Net investment income	$35,527,964	$44,265,017
Net realized gain	449,048	7,084,957
Change in net unrealized appreciation (depreciation)	56,917,236	30,914,245

Increase in net assets resulting from operations	92,894,248	82,264,219

Distributions to shareholders
From net investment income
Class A	(7,538,605)	(1,559,010)
Class C	(1,985,084)	(463,422)
Class I	(3,522,156)	(767,957)
Class NAV	(34,040,573)	(41,644,611)

Total distributions	(47,086,418)	(44,435,000)

From Fund share transactions (Note 6)	698,780,909	341,592,467

Total increase	744,588,739	379,421,686

Net assets

Beginning of period	829,913,300	450,491,614

End of period	$1,574,502,039	$829,913,300

Undistributed (accumulated distributions in excess of)
net investment income	($2,344,824)	$9,213,630


34	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements

Financial highlights

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


CLASS A SHARES Period ended	2-28-11¹	8-31-10²

Per share operating performance

Net asset value, beginning of period	$10.53	$10.25
Net investment income³	0.31	0.43
Net realized and unrealized gain on investments	0.59	0.33
Total from investment operations	0.90	0.76
Less distributions
From net investment income	(0.42)	(0.48)
Net asset value, end of period	$11.01	$10.53
Total return (%)⁴	8.62^5,6	7.53^5,6

Ratios and supplemental data

Net assets, end of period (in millions)	$321	$120
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	1.25⁷	1.26⁷
Expenses including reductions and amounts recaptured	1.17⁷	1.17⁷
Net investment income	5.70⁷	6.33⁷
Portfolio turnover (%)	16	49⁸

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class A shares is 1-4-10.
³Based on the average daily shares outstanding.
⁴Does not reflect the effect of sales charges, if any.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Portfolio turnover is shown for the period from 9-1-09 to 8-31-10.


CLASS C SHARES Period ended	2-28-11¹	8-31-10²

Per share operating performance

Net asset value, beginning of period	$10.53	$10.25
Net investment income³	0.27	0.38
Net realized and unrealized gain on investments	0.59	0.33
Total from investment operations	0.86	0.71
Less distributions
From net investment income	(0.38)	(0.43)
Net asset value, end of period	$11.01	$10.53
Total return (%)⁴	8.24^5,6	6.99^5,6

Ratios and supplemental data

Net assets, end of period (in millions)	$80	$38
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	1.96⁷	1.99⁷
Expenses including reductions and amounts recaptured	1.87⁷	1.87⁷
Net investment income	4.99⁷	5.63⁷
Portfolio turnover (%)	16	49⁸

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class C shares is 1-4-10.
³Based on the average daily shares outstanding.
⁴Does not reflect the effect of sales charges, if any.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Portfolio turnover is shown for the period from 9-1-09 to 8-31-10.


See notes to financial statements	Semiannual report \| Strategic Income Opportunities Fund	35


CLASS I SHARES Period ended	2-28-11¹	8-31-10²

Per share operating performance

Net asset value, beginning of period	$10.54	$10.25
Net investment income³	0.32	0.46
Net realized and unrealized gain on investments	0.59	0.33
Total from investment operations	0.91	0.79
Less distributions
From net investment income	(0.44)	(0.50)
Net asset value, end of period	$11.01	$10.54
Total return (%)	8.71^4,5	7.83^4,5

Ratios and supplemental data

Net assets, end of period (in millions)	$191	$40
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	0.81⁶	0.85⁶
Expenses including reductions and amounts recaptured	0.80⁶	0.85⁶
Net investment income	5.99⁶	6.69⁶
Portfolio turnover (%)	16	49⁷

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class I shares is 1-4-10.
³Based on the average daily shares outstanding.
⁴Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁵Not annualized.
⁶Annualized.
⁷Portfolio turnover is shown for the period from 9-1-09 to 8-31-10.


CLASS NAV SHARES Period ended	2-28-11¹	8-31-10	8-31-09	8-31-08	8-31-07	8-31-06²

Per share operating performance

Net asset value, beginning of period	$10.53	$9.76	$10.02	$10.06	$10.06	$10.00
Net investment income³	0.33	0.80	0.69⁴	0.62	0.51	0.14
Net realized and unrealized gain (loss)
on investments	0.59	0.77	0.17	(0.25)	(0.12)	(0.01)
Total from investment operations	0.92	1.57	0.86	0.37	0.39	0.13
Less distributions
From net investment income	(0.44)	(0.80)	(1.04)	(0.41)	(0.39)	(0.07)
From net realized gain	—	—	(0.08)	—	—	—
Total distributions	(0.44)	(0.80)	(1.12)	(0.41)	(0.39)	(0.07)
Net asset value, end of period	$11.01	$10.53	$9.76	$10.02	$10.06	$10.06
Total return (%)	8.86^5,6	16.55⁵	10.67	3.67	4.01	1.37⁶

Ratios and supplemental data

Net assets, end of period (in millions)	$982	$633	$450	$463	$423	$281
Ratios (as a percentage of average net assets):
Expenses before reductions and
amounts recaptured	0.75⁷	0.79	0.83⁴	0.76	0.78	0.86⁷
Expenses including reductions and
amounts recaptured	0.74⁷	0.79	0.83⁴	0.76	0.78	0.86⁷
Net investment income	6.21⁷	7.75	7.81⁴	6.03	5.15	4.18⁷
Portfolio turnover (%)	16	49	55	55⁸	97⁸	65⁸

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class NAV shares is 4-28-06.
³Based on the average daily shares outstanding.
⁴Includes tax expense, which was 0.07% of average net assets. This expense decreased the net investment income by $0.01 per share and the net investment income ratio by 0.07%.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows: 61% for the year ended 8-31-08 and 106% for the year ended 8-31-07. The year ended 8-31-06 includes the effect of TBA transactions.


36	Strategic Income Opportunities Fund \| Semiannual report	See notes to financial statements

Notes to financial statements
(unaudited)

Note 1 — Organization

John Hancock Strategic Income Opportunities Fund (the Fund) is a diversified series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the Fund is to seek to maximize total return consisting of current income and capital appreciation.

The Fund may offer multiple classes of shares. The shares currently offered are detailed in the Statements of Assets and Liabilities. Class A and Class C shares are open to all investors. Class I shares are offered to institutions and certain investors. Class NAV shares are offered to the John Hancock Lifestyle and Lifecycle Portfolios, and other affiliated John Hancock funds. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, transfer agent fees, state registration fees and printing and postage for each class may differ.

Note 2 — Significant accounting policies

The following is a summary of the values by input classification of the Fund’s investments as of February 28, 2011, by major security category or type:


Semiannual report \| Strategic Income Opportunities Fund	37


				LEVEL 3
			LEVEL 2	SIGNIFICANT
	TOTAL MARKET	LEVEL 1	SIGNIFICANT	UNOBSERVABLE
INVESTMENTS IN SECURITIES	VALUE AT 2-28-11	QUOTED PRICE	OBSERVABLE INPUTS	INPUTS

Corporate Bonds	$737,267,699	—	$718,325,342	$18,942,357
Foreign Government
Obligations	410,196,420	—	410,196,420	—
Capital Preferred Securities	27,610,863	—	27,610,863	—
Convertible Bonds	57,369,268	—	57,369,268	—
Municipal Bonds	58,216,981	—	58,216,981	—
Term Loans	67,459,690	—	62,534,690	4,925,000
Collateralized Mortgage
Obligations	43,159,308	—	40,758,368	2,400,940
Asset Backed Securities	10,972,041	—	10,972,041	—
Preferred Securities	52,252,408	$46,450,488	—	5,801,920
Common Stocks	32,950,871	27,349,315	1,064,566	4,536,990
Warrants	1,747,300	1,747,300	—	—
Options Purchased	2,728,315	—	2,728,315	—
Short-Term Investments	124,100,000	—	124,100,000	—

Total Investments in
Securities	$1,626,031,164	$75,547,103	$1,513,876,854	$36,607,207
Other Financial Instruments
Futures	($660,692)	($660,692)	—	—
Forward Foreign Currency
Contracts	($4,384,834)	—	($4,384,834)	—

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. Transfers in or out of Level 3 represent the beginning value of any security or instrument where a change in the level has occurred from the beginning to the end of the period.


			COLLATERALIZED
	CORPORATE		MORTGAGE	PREFERRED	COMMON
	BONDS	TERM LOANS	OBLIGATIONS	SECURITIES	STOCK	TOTALS

Balance as of 8-31-10	$10,694,981	—	$2,257,307	$9,326,879	$337,044	$22,616,211
Accrued discounts/premiums	24,691	—	12,037	—	—	36,728
Realized gain (loss)	3,095	—	(12,037)	—	—	(8,942)
Change in unrealized
appreciation (depreciation)	426,871	—	525,810	(428,281)	660,058	1,184,458
Net purchases (sales)	7,792,726	$4,925,000	(12,284)	(3,096,678)	3,539,888	13,148,652
Net transfers in and/out of
Level 3	(7)	—	(369,893)	—	—	(369,900)
Balance as of 2–28–11	$18,942,357	$4,925,000	$2,400,940	$5,801,920	$4,536,990	$36,607,207
Change in unrealized at
period end*	$426,871	—	$525,810	(690,378)	$660,058	$922,361

*Change in unrealized appreciation (depreciation) attributable to level 3 securities held at the period end.

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the six-month period ended February 28, 2011, there were no significant transfers in or out of Level 1 or Level 2 assets.


38	Strategic Income Opportunities Fund \| Semiannual report

factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain securities and forward foreign currency contracts 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. Certain short-term securities are valued at amortized cost.

Term loans (Floating rate loans). The Fund may invest in term loans, which often include debt securities that are rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual restrictions on resale. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During years of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.

The Fund’s ability to receive payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. The Fund’s failure to receive scheduled payments on a term loan due to a default, bankruptcy or other reason, would adversely affect the Fund’s income and would likely reduce the value of its assets. Because many term loans are not rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively on the subadviser’s credit analysis of the borrower and/or term loan agents. The Fund may have limited rights to enforce the terms of an underlying loan.

Foreign currency translation. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income, and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on securities is reflected as a component of the realized and unrealized gains (losses) on investments.


Semiannual report \| Strategic Income Opportunities Fund	39

Stripped securities. Stripped mortgage backed securities are financial instruments structured to separate principal and interest cash flows so that one class receives the entire principal from the underlying mortgage assets (PO or principal only), while the other class receives the interest cash flows (IO or interest only). Both PO and IO investments represent an interest in the cash flows of an underlying stripped mortgage backed security. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully receive its initial investment in an IO security. The market value of these securities can be extremely volatile in response to changes in interest rates. In addition, these securities present additional credit risk such that the Fund may not receive all or part of its principal or interest payments because the borrower or issuer has defaulted on its obligation.

Line of credit. The Fund may borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the custodian agreement, the custodian may loan money to the Fund to make properly authorized payments. The Fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian has a lien, security interest or security entitlement in any Fund property that is not segregated, to the maximum extent permitted by law for any overdraft.

In addition, the Fund and other affiliated funds have entered into an agreement with State Street Bank and Trust Company (SSBT) which enables them to participate in a $200 million unsecured committed line of credit. A commitment fee, 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 pro rata basis and is reflected in other expenses on the Statement of Operations. For the six-month period ended February 28, 2011, the Fund had no significant borrowings under the line of credit.

Effective March 30, 2011, the line of credit with SSBT expired and a similar arrangement was established with Citibank N.A.

Class allocations. Income, common expenses, and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net asset value of the class. Class-specific expenses, such as distribution and service fees, if any, transfer agent fees, state registration fees and printing and postage, for all classes, are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rates applicable to each class.

Federal income taxes. The Fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject


40	Strategic Income Opportunities Fund \| Semiannual report

to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.

For federal income tax purposes, the Fund has a capital loss carryforward of $7,801,949 available to offset future net realized capital gains. The following table details the capital loss carryforward available as of August 31, 2010.


CAPITAL LOSS CARRYFORWARD EXPIRING AT AUGUST 31:
2015	2016	2017	2018

$570,632	$1,198,513	$3,209,592	$2,823,212

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.

Note 3 — Derivative instruments

The Fund may invest in derivatives in order to meet its investment objectives. The use of derivatives may involve risks different from, or potentially greater than, the risks associated with investing directly in securities. Specifically, derivatives expose the Fund to the risk that the counterparty to an over-the-counter (OTC) derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction. If the counterparty defaults, the Fund will have contractual remedies, but there is no assurance that the counterparty will meet its contractual obligations or that the Fund will succeed in enforcing them.

Futures. A futures contract is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets, contract prices that can be highly volatile and imperfectly correlated to movements in hedged security values and/or


Semiannual report \| Strategic Income Opportunities Fund	41

interest rates and potential losses in excess of the amounts recognized on the Statement of Assets and Liabilities.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is generally based on a percentage of the contract value; this amount is the initial margin for the trade. The margin deposit must then be maintained at the established level over the life of the contract. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (variation margin) is recorded by the Fund.

During the six-month period ended February 28, 2011, the Fund used futures contracts to manage duration. The following table summarizes the contracts held at February 28, 2011. During the six-month period ended February 28, 2011, the Fund held futures contracts with total absolute values ranging from $50.9 million to $162.0 million, as measured at each quarter end.


OPEN	NUMBER OF				UNREALIZED
CONTRACTS	CONTRACTS	POSITION	EXPIRATION DATE	VALUE	DEPRECIATION

U.S. Treasury 10-Year	1,361	Short	Jun 2011	($162,022,797)	($660,692)
Note Futures

Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell a specific currency at a price that is set on the date of the contract. The forward contract calls for delivery of the currency on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the risk that currency movements will not occur thereby reducing the Fund’s total return, and the potential for losses in excess of the amounts recognized on the Statement of Assets and Liabilities.

The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.

During the six-month period ended February 28, 2011, the Fund used forward foreign currency contracts to manage against anticipated currency exchange rate changes. The following table summarizes the contracts held at February 28, 2011. During the six-month period ended February 28, 2011, the Fund held forward foreign currency contracts with total USD notional absolute values ranging from $1.5 billion to $2.8 billion, as measured at each quarter end.


		PRINCIPAL
	PRINCIPAL	AMOUNT			UNREALIZED
	AMOUNT COVERED	COVERED BY		SETTLEMENT	APPRECIATION
CURRENCY	BY CONTRACT	CONTRACT (USD)	COUNTERPARTY	DATE	(DEPRECIATION)

Buys
AUD	10,953,080	$10,757,019	Bank of Montreal	3-31-11	$355,081
AUD	15,000,000	15,076,500	Royal Bank of Scotland PLC	3-31-11	141,275
CAD	42,242,663	42,590,308	Bank of Montreal	3-31-11	864,246
CAD	75,920,025	76,526,048	Royal Bank of Canada	3-31-11	1,572,032
CAD	157,121,148	158,597,693	Toronto Dominion Bank	3-31-11	3,031,073
CHF	14,259,750	15,347,917	Royal Bank of Canada	3-31-11	3,921
EUR	7,400,000	9,825,942	Bank of Montreal	3-31-11	381,915
EUR	7,400,000	9,827,200	Royal Bank of Canada	3-31-11	380,657
EUR	15,400,000	20,863,458	Royal Bank of Scotland PLC	3-31-11	379,920


42	Strategic Income Opportunities Fund \| Semiannual report


		PRINCIPAL
	PRINCIPAL	AMOUNT			UNREALIZED
	AMOUNT COVERED	COVERED BY		SETTLEMENT	APPRECIATION
CURRENCY	BY CONTRACT	CONTRACT (USD)	COUNTERPARTY	DATE	(DEPRECIATION)

EUR	7,400,000	$9,825,128	State Street Bank & Trust	3-31-11	$382,729
			Company
EUR	7,500,000	10,267,868	UBS AG	3-31-11	77,933
GBP	15,000,000	24,000,000	Bank of Montreal	3-31-11	378,932
GBP	7,700,000	12,255,859	Canadian Imperial Bank	3-31-11	258,660
			of Commerce
GBP	16,200,000	26,008,857	Morgan Stanley &	3-31-11	320,390
			Company, Inc.
GBP	30,000,000	48,197,627	Royal Bank of Canada	3-31-11	560,237
GBP	18,750,000	30,078,750	Royal Bank of Scotland PLC	3-31-11	394,916
GBP	7,700,000	12,168,110	State Street Bank & Trust	3-31-11	346,409
			Company
NOK	90,000,000	15,755,199	State Street Bank & Trust	3-31-11	291,558
			Company
NZD	31,200,000	23,421,060	Canadian Imperial Bank of	3-31-11	4,806
			Commerce
SEK	117,028,125	18,230,526	Royal Bank of Canada	3-31-11	221,271
SEK	169,514,850	26,116,912	State Street Bank & Trust	3-31-11	610,453
			Company
Total		$615,737,981			$10,958,414
Sells
AUD	25,953,000	$26,245,548	Royal Bank of Scotland PLC	3-31-11	($84,247)
CAD	23,575,800	24,000,000	Bank of Montreal	3-31-11	(252,162)
CAD	52,016,625	52,847,917	Royal Bank of Canada	3-31-11	(661,002)
CHF	14,201,250	15,326,453	Royal Bank of Canada	3-31-11	37,596
EUR	7,600,000	10,167,280	Bank of Montreal	3-31-11	(316,465)
EUR	14,630,000	19,992,130	Canadian Imperial Bank of	3-31-11	(189,080)
			Commerce
EUR	15,400,000	20,923,364	Royal Bank of Scotland PLC	3-31-11	(320,014)
EUR	15,100,000	20,292,430	State Street Bank & Trust	3-31-11	(537,117)
			Company
EUR	76,489,255	102,016,014	UBS AG	3-31-11	(3,496,336)
GBP	15,000,000	23,840,308	Bank of Montreal	3-31-11	(538,624)
GBP	7,900,000	12,613,022	Bank of Nova Scotia	3-31-11	(226,550)
GBP	16,200,000	26,137,728	Morgan Stanley &	3-31-11	(191,519)
			Company, Inc.
GBP	45,000,000	72,111,901	Royal Bank of Canada	3-31-11	(1,024,896)
GBP	176,190,957	281,641,710	Royal Bank of Scotland PLC	3-31-11	(4,714,785)
GBP	23,100,000	36,630,594	Standard Chartered Bank	3-31-11	(912,962)
GBP	39,500,000	63,321,172	State Street Bank & Trust	3-31-11	(876,683)
			Company
GBP	7,700,000	12,217,590	UBS AG	3-31-11	(296,929)
NOK	90,000,000	16,019,502	State Street Bank & Trust	3-31-11	(27,254)
			Company
SEK	615,000	97,126	Bank of Montreal	3-31-11	159
SEK	117,028,125	18,243,813	Royal Bank of Canada	3-31-11	(207,983)
SEK	101,617,200	15,755,199	State Street Bank & Trust	3-31-11	(266,760)
			Company
SEK	67,282,650	10,368,805	UBS AG	3-31-11	(239,635)
Total		$880,809,606			($15,343,248)


Semiannual report \| Strategic Income Opportunities Fund	43


Currency Abbreviations
AUD	Australian Dollar
CAD	Canadian Dollar
CHF	Swiss Franc
EUR	Euro
GBP	Pound Sterling
NOK	Norwegian Krone
NZD	New Zealand Dollar
SEK	Swedish Krona

Options. There are two types of options, a put option and a call option. Options are traded either over-the-counter or on an exchange. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price. Writing puts and buying calls may increase the Fund’s exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the Fund’s exposure to such changes. Risks related to the use of options include the loss of the premium, possible illiquidity of the options markets, trading restrictions imposed by an exchange, movements in underlying security values, and for written options, potential losses in excess of the amounts recognized on the Statement of Assets and Liabilities.

During the six-month period ended February 28, 2011, the Fund used purchased options to manage against anticipated currency exchange rate changes. During the six-month period ended February 28, 2011, the Fund held purchased options with markets values ranging from approximately $250,000 to $2.7 million, as measured at each quarter end.

Fair value of derivative instruments by risk category

The table below summarizes the fair value of derivatives held by the Fund at February 28, 2011 by risk category:


		FINANCIAL	ASSET	LIABILITY
	STATEMENT OF ASSETS AND	INSTRUMENTS	DERIVATIVES	DERIVATIVES
RISK	LIABILITIES LOCATION	LOCATION	FAIR VALUE	FAIR VALUE

Interest rate contracts	Receivable/payable for	Futures	—	($660,692)†
	futures

Foreign exchange	Receivable/payable for	Forward foreign	$13,724,484	(15,381,003)
contracts	forward foreign cur-	currency contracts/
	rency exchange contracts;	Purchased options
	Investments at value*
Total			$13,724,484	($16,041,695)

* Purchased options are included in the Fund’s investments.

† Reflects cumulative appreciation/depreciation of futures as disclosed in Note 3. Only the period end variation margin is separately disclosed in the Statement of Assets and Liabilities.


44	Strategic Income Opportunities Fund \| Semiannual report

Effect of derivative instruments on the Statement of Operations

The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six-month period ended February 28, 2011:


				FOREIGN
	STATEMENT OF		FUTURES	CURRENCY
RISK	OPERATIONS LOCATION	INVESTMENTS¹	CONTRACTS	TRANSACTIONS²	TOTAL


Interest rate	Net realized	—	$2,939,536	—	$2,939,536
contracts	gain (loss)
Foreign currency Net realized		$694,135	—	($15,469,098)	(14,774,963)
contracts	gain (loss)
Total		$694,135	$2,939,536	($15,469,098)	($11,835,427)

¹Realized gain/loss associated with purchased options is included in this caption on the Statement of Operations.

²Realized gain/loss associated with forward foreign currency contracts is included in this caption on the Statement of Operations.

The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six-month period ended February 28, 2011:


				TRANSLATION
				OF ASSETS
				AND LIABILITIES
	STATEMENT OF		FUTURES	IN FOREIGN
RISK	OPERATIONS LOCATION	INVESTMENTS¹	CONTRACTS	CURRENCIES²	TOTAL


Interest rate	Change in unreal-	—	($561,565)	—	($561,565)
contracts	ized appreciation
	(depreciation)
Foreign currency	Change in unreal-	$299,186	—	($814,205)	(515,019)
contracts	ized appreciation
	(depreciation)
Total		$299,186	($561,565)	($814,205)	($1,076,584)

¹Change in unrealized appreciation/depreciation associated with purchased options is included in this caption on the Statement of Operations.

²Change in unrealized appreciation/depreciation associated with forward foreign currency contracts is included in this caption on the Statement of Operations.

Note 4 — Guarantees and indemnifications

Note 5 — Fees and transactions with affiliates

John Hancock Investment Management Services, LLC (the Adviser), serves as investment adviser for the Fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Fund. The Adviser and the Distributor are indirect wholly owned subsidiaries of Manulife Financial Corporation (MFC).


Semiannual report \| Strategic Income Opportunities Fund	45

(b) 0.650% of the Fund’s aggregate net assets in excess of $500,000,000. Prior to November 6, 2010, the advisory fees were as follows: a) 0.725% of the first $500 million of the Fund’s aggregate daily net assets and b) 0.65% of the excess over $500 million of the Fund’s aggregate daily net assets. Aggregate net assets include the net assets of the Fund and Strategic Income Opportunities Trust, a series of John Hancock Trust (JHT). The Adviser has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC (formerly, MFC Global Investment Management (U.S.), LLC), an indirectly owned subsidiary of MFC and an affiliate of the Adviser. Manulife Asset Management (U.S.) is doing business as John Hancock Asset Management. The Fund is not responsible for payment of the subadvisory fees.

The investment management fees incurred for the six-month period ended February 28, 2011 were equivalent to an annual effective rate of 0.67% of the Fund’s average daily net assets.

Expense reimbursements. The Adviser has voluntarily agreed to waive a portion of its management fee if certain expenses of the Fund exceed 0.15% of average net assets. Expenses excluded from this waiver are taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses, extraordinary expenses not incurred in the ordinary course of the Fund’s business, advisory fees, Rule 12b-1 fees, service fees, transfer agency fees, blue sky fees, printing and postage, and fees under any agreements or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund. This expense reduction will continue in effect until terminated by the Adviser.

The Adviser has contractually agreed to limit the Fund’s total expenses, excluding brokerage commissions, interest and other extraordinary expenses not incurred in the ordinary course of the Fund’s business, to 1.17% for Class A shares, 1.87% for Class C shares and 0.90% for Class I shares, of the Fund’s average daily net asset value, on an annual basis. Accordingly, these expense reductions amounted to $71,688 and $24,214 for Class A shares and Class C shares, respectively, for the six-month period ended February 28, 2011. The expense reimbursements and limits will continue in effect until December 31, 2011, and thereafter until terminated by the Adviser.

The Adviser has voluntarily agreed to waive a portion of its management fee for certain funds of the Trust and JHT (the Participating Funds), including Strategic Income Opportunities Fund. The waiver equals, on an annualized basis, 0.01% of that portion of the aggregate net assets of all the Participating Funds that exceeds $85 billion. The amount of the reimbursement is calculated daily and allocated among all the Participating Funds in proportion to the daily net assets of each Fund. Accordingly, the expense reduction related to this agreement was $12,482.

Expense recapture. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursements or waivers originally occurred. The table below outlines the amounts recovered during the six-month period ended February 28, 2011, and the amount of waived or reimbursed expenses subject to potential recovery and the respective expiration dates. Certain reimbursements or waivers are not subject to recapture.


AMOUNTS ELIGIBLE	AMOUNTS ELIGIBLE	AMOUNTS ELIGIBLE	AMOUNT RECOVERED
FOR RECOVERY	FOR RECOVERY	FOR RECOVERY	DURING THE PERIOD
THROUGH 8-1-12	THROUGH 8-1-13	THROUGH 2-1-14	ENDED 2-28-11


—	$32,298	$95,902	—


46	Strategic Income Opportunities Fund \| Semiannual report

share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six-month period ended February 28, 2011, amounted to an annual rate of 0.01% of the Fund’s average daily net assets.

Distribution plans. The Fund has a distribution agreement with the Distributor. The Fund has adopted distribution plans with respect to Class A and Class C shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the Fund. The Fund may pay up to the following contractual rates of distribution fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the Fund’s shares: 0.30% for Class A shares and 1.00% for Class C shares.

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $735,905 for the six-month period ended February 28, 2011. Of this amount, $90,599 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $642,031 was paid as sales commissions to broker-dealers and $3,275 was paid as sales commissions to sales personnel of Signator Investors, Inc. (Signator Investors), a broker-dealer affiliate of the Adviser.

Class C shares are subject to contingent deferred sales charges (CDSC). Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC on the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six-month period ended February 28, 2011, CDSCs received by the Distributor amounted to $13,505 for Class C shares.

Transfer agent fees. The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services or Transfer Agent), an affiliate of the Adviser. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain revenues that Signature Services receive in connection with the service they provide to the funds. Signature Services Cost is calculated monthly and allocated, as applicable, to four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.

Class level expenses. Class level expenses for the six-month period ended February 28, 2011 were:


	DISTRIBUTION	TRANSFER	STATE	PRINTING AND
CLASS	AND SERVICE FEES	AGENT FEES	REGISTRATION FEES	POSTAGE

Class A	$292,471	$177,975	$11,491	$5,792
Class C	281,114	51,120	7,086	1,791
Class I	—	22,801	8,559	2,510
Total	$573,585	$251,896	$27,136	$10,093


Semiannual report \| Strategic Income Opportunities Fund	47

Note 6 — Fund share transactions

Transactions in Fund shares for the six-month period ended February 28, 2011, and for the year ended August 31, 2010, were as follows:


	Six months ended 2-28-11		Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares¹

Sold	19,334,848	$210,846,055	11,884,462	$124,922,370
Distributions reinvested	598,987	6,536,720	122,745	1,289,419
Repurchased	(2,172,255)	(23,691,599)	(623,925)	(6,586,345)

Net increase	17,761,580	$193,691,176	11,383,282	$119,625,444

Class C shares¹

Sold	4,121,696	$44,915,058	3,719,926	$39,098,609
Distributions reinvested	161,791	1,764,993	39,240	412,276
Repurchased	(570,806)	(6,223,457)	(173,556)	(1,827,161)

Net increase	3,712,681	$40,456,594	3,585,610	$37,683,724

Class I shares¹

Sold	15,163,447	$165,598,947	4,503,364	$47,506,161
Distributions reinvested	274,956	3,002,668	65,422	686,826
Repurchased	(1,811,794)	(19,738,407)	(806,075)	(8,446,399)

Net increase	13,626,609	$148,863,208	3,762,711	$39,746,588

Class NAV shares

Sold	26,175,776	$283,580,980	11,439,481	$118,864,611
Distributions reinvested	3,123,544	34,040,573	4,025,102	41,644,611
Repurchased	(170,507)	(1,851,622)	(1,565,272)	(15,972,511)

Net increase	29,128,813	$315,769,931	13,899,311	$144,536,711

Net increase	64,229,683	$698,780,909	32,630,914	$341,592,467

¹The inception date for Class A, Class C and Class I shares is 1-4-10.

Affiliates of the Fund owned 100% of shares of beneficial interest of Class NAV shares on February 28, 2011.

Note 7 — Purchase and sale of securities

Purchases and sales of securities, other than short-term securities, aggregated $823,095,703 and $180,167,106, respectively, for the six-month period ended February 28, 2011.

Note 8 — Investment by affiliated funds

Certain investors in the Fund are affiliated funds and are managed by the Adviser and its affiliates. The affiliated funds do not invest in the Fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the Fund’s net assets. For the six-month period ended February 28, 2011, the following funds had an affiliate ownership concentration of 5% or more of the Fund’s net assets:


	AFFILIATE
FUND	CONCENTRATION

Lifestyle Conservative Portfolio	10.26%
Lifestyle Moderate Portfolio	11.37%
Lifestyle Growth Portfolio	11.45%
Lifestyle Balanced Portfolio	23.86%


48	Strategic Income Opportunities Fund \| Semiannual report

More information


Trustees	Investment adviser
James M. Oates, Chairman	John Hancock Investment Management
James R. Boyle†	Services, LLC
Charles L. Bardelis*
Peter S. Burgess*	Subadviser
Grace K. Fey	John Hancock Asset Management
Theron S. Hoffman
Hassell H. McClellan	Principal distributor
Steven M. Roberts*	John Hancock Funds, LLC

Officers	Custodian
Hugh McHaffie	State Street Bank and Trust Company
President
	Transfer agent
Thomas M. Kinzler	John Hancock Signature Services, Inc.
Secretary and Chief Legal Officer
	Legal counsel
Francis V. Knox, Jr.	K&L Gates LLP
Chief Compliance Officer

Michael J. Leary	The report is certified under the Sarbanes-Oxley
Treasurer	Act, which requires mutual funds and other public
	companies to affirm that, to the best of their
Charles A. Rizzo	knowledge, the information in their financial reports
Chief Financial Officer	is fairly and accurately stated in all material respects.

John G. Vrysen
Chief Operating Officer

*Member of the Audit Committee
†Non-Independent Trustee

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site www.jhfunds.com or by calling 1-800-225-5291.


You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 55913	Mutual Fund Image Operations
	Boston, MA 02205-5913	30 Dan Road
		Canton, MA 02021


Semiannual report \| Strategic Income Opportunities Fund	49

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 Strategic Income Opportunities Fund.	356SA 2/11
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	4/11

A look at performance

For the period ended February 28, 2011


	Average annual total returns (%)				Cumulative total returns (%)
	with maximum sales charge (POP)				with maximum sales charge (POP)

				Since					Since
	1-year	5-year	10-year	inception¹	6-months	1-year	5-year	10-year	inception¹

Class A⁴	11.37	—	—	22.50	7.88	11.37	—	—	55.06

Class I^2,3,4	16.74	—	—	24.99	13.43	16.74	—	—	61.95

The expense ratios of the Fund, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The net expenses are as follows: Class A — 1.73% and Class I — 1.25%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 6.12% and Class I — 5.64%.

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

¹From 1-2-09.

²1-2-09 is the inception date for the oldest class of shares, Class A shares. The inception date for Class I shares is 12-31-10. The returns prior to this date are those of Class A shares that have been recalculated to apply the gross fees and expenses of Class I shares.

³For certain types of investors, as described in the Fund’s Class I share prospectus.

⁴Performance information prior to 12-20-10 reflects an allocation to a different mix of underlying funds, and would have been different if the Fund’s investments had been allocated to its current mix of underlying funds.


6	Alternative Asset Allocation Fund \| Semiannual report


			With
	Period	Without	maximum
	beginning	sales charge	sales charge	Index 1	Index 2	Index 3

Class I^2,3	1-2-09	$16,195	$16,195	$15,561	$11,327	$13,645

Assuming all distributions were reinvested for the period indicated, the table above shows the value of $10,000 investment in the Fund’s Class A, and Class I shares, respectively, as of 2-28-11. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in different classes and the fee structure of those classes.

MSCI World Index (gross of foreign withholding tax on dividends) — Index 1 — is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

Barclays Capital U.S. Aggregate Bond Index — Index 2 — is an unmanaged index of dollar-denominated and non-convertible investment grade debt issue.

55% MSCI World/45% Barclays Capital U.S. Aggregate Bond Index — Index 3 — is comprised of 55% MSCI World Index and 45% Barclays Capital U.S. Aggregate Bond Index.

The fund has added the returns of separate indexes to show the individual returns of broad-based securities market indexes.

It is not possible to invest directly in an index. Index figures do not reflect sales charges or foreign currency impact, which would have resulted in different values if they did.

¹NAV represents net asset value and POP represents public offering price.

³For certain types of investors, as described in the Fund’s Class I share prospectus.


Semiannual report \| Alternative Asset Allocation Fund	7

Your expenses

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

Understanding fund expenses

As a shareholder of the Fund, 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 fund expenses.

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

Actual expenses/actual returns


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11¹


Class A	$1,000.00	$1,135.60	$3.81

For the class noted below, the example assumes an account value of $1,000 on December 31, 2010 (inception date for Class I) with the same investment held until February 28, 2011.


	Account value	Ending value	Expenses paid during
	on 12-31-10	on 2-28-11	period ended 2-28-11²


Class I	$1,000.00	$1,036.60	$0.32


8	Alternative Asset Allocation Fund \| Semiannual report

Hypothetical example for comparison purposes


	Account value	Ending value	Expenses paid during
	on 9-1-10	on 2-28-11	period ended 2-28-11³

Class A	$1,000.00	$1,021.20	$3.61

Class I	1,000.00	1,023.90	0.95

¹Expenses are equal to the Fund’s annualized expense ratio of 0.72% for Class A shares, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

²Expenses are equal to the Fund’s annualized expense ratio of 0.19% for Class I shares, multiplied by the average account value over the period, multiplied by 60/365 (to reflect the period).

³Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).


Semiannual report \| Alternative Asset Allocation Fund	9

Asset allocation


Asset Allocation¹

Fixed Income	39%	Currency	23%

Equity	33%	Other Assets	5%

¹As a percentage of net assets on 2-28-11.


10	Alternative Asset Allocation Fund \| Semiannual report

Fund’s investments


Investment companies

Underlying Funds’ Subadvisers

Deutsche Asset Management		(Deutsche)
Dimensional Fund Advisors, Inc.		(DFA)
First Quadrant L.P.		(First Quadrant)
John Hancock Asset Management*		(John Hancock)
Pacific Investment Management Company		(PIMCO)
Stone Harbor Investment Partners, LP		(Stone Harbor)
Wellington Management Company, LLP		(Wellington)
*Manulife Asset Management (US) LLC and Manulife Asset Management (North America) Limited are doing business as
John Hancock Asset Management.

As of 2-28-11 (unaudited)


	Shares	Value

Affiliated Investment Companies 90.33%		$2,968,745

(Cost $2,813,683)

EQUITY 28.52%

John Hancock Funds II (G)

Emerging Markets, Class NAV (DFA)	13,424	$156,250

Global Real Estate, Class NAV (Deutsche)	20,084	156,250

Natural Resources, Class NAV (Wellington)	6,152	156,250

Technical Opportunities, Class NAV (Wellington) (I)	39,524	468,749

FIXED INCOME 61.81%

John Hancock Funds II (G)

Currency Strategies, Class NAV (First Quadrant) (I)	80,791	781,249

Global High Yield, Class NAV (Stone Harbor)	29,621	312,499

Multi-Sector Bond, Class NAV (Stone Harbor)	29,933	312,499

Real Return Bond, Class NAV (PIMCO)	25,263	312,499

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	28,383	312,500

Unaffiliated Investment Companies 4.66%		$153,058

(Cost $127,135)

EQUITY 4.66%

PowerShares DB Commodity Index Tracking Fund (I)	5,150	153,058

Total Investments (Cost $2,940,818)† 94.99%		$3,121,803


Other assets and liabilities, net 5.01%		164,668


Total net assets 100.00%		$3,286,471


See notes to financial statements	Semiannual report \| Alternative Asset Allocation Fund	11

Notes to Schedule of Investments

Percentages are based upon net assets.

(A) The subadviser is an affiliate of the adviser.

(G) The underlying fund’s subadviser is shown parenthetically.

(I) Non-income producing

¹Manulife Asset Management (US) LLC and Manulife Asset Management (North America) Limited are doing business as John Hancock Asset Management.

† At 2-28-11, the aggregate cost of investment securities for federal income tax purposes was $2,957,718. Net unrealized appreciation aggregated $164,085, of which $181,674 related to appreciated investment securities and $17,589 related to depreciated investment securities.


12	Alternative Asset Allocation Fund \| Semiannual report	See notes to financial statements

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 2-28-11 (unaudited)


Assets

Investments, at value (Cost $127,135)	$153,058
Investments in affiliated funds, at value (Cost $2,813,683) (Note 9)	2,968,745

Total investments, at value (Cost $2,940,818)	3,121,803
Cash	35,453
Receivable for fund shares sold	231,130
Dividends receivable	3,075
Receivable due from adviser	902
Other receivables and prepaid expenses	148

Total assets	3,392,511

Liabilities

Payable for investments purchased	71,365
Payable to affiliates
Accounting and legal services fees	48
Transfer agent fees	600
Trustees’ fees	10
Other liabilities and accrued expenses	34,017

Total liabilities	106,040

Net assets

Capital paid-in	$2,789,401
Undistributed net investment income	4,047
Accumulated net realized gain on investments	312,038
Net unrealized appreciation on investments	180,985

Net assets	$3,286,471

Net asset value per share

Based on net asset values and shares outstanding — the Fund has an
unlimited number of shares authorized with no par value
Class A ($2,884,830 ÷ 195,945 shares)	$14.72
Class I ($401,641 ÷ 27,264 shares)	$14.73

Maximum offering price per share

Class A (net asset value per share ÷ 95%)¹	$15.49

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.


See notes to financial statements	Semiannual report \| Alternative Asset Allocation Fund	13

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

Statement of operations For the six-month period ended 2-28-11
(unaudited)

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


Investment income

Income distributions received from affiliated underlying funds	$22,590

Expenses

Investment management fees (Note 4)	1,590
Distribution and service fees (Note 4)	2,455
Accounting and legal services fees (Note 4)	124
Transfer agent fees (Note 4)	1,490
Trustees’ fees (Note 4)	6
State registration fees (Note 4)	226
Printing and postage (Note 4)	182
Professional fees	23,173
Custodian fees	5,970
Registration and filing fees	2,318
Other	599

Total expenses before reductions and amounts recaptured	38,133
Less expense reductions and amounts recaptured (Note 4)	(32,192)

Net expenses	5,941

Net investment income	16,649

Realized and unrealized gain (loss)

Net realized gain on
Investments in unaffiliated issuers	10,581
Investments in affiliated issuers	315,068
Capital gain distributions received from underlying funds	14,562
	340,211
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers	23,328
Investments in affiliated issuers	(171,110)
	(147,782)
Net realized and unrealized gain	192,429

Increase in net assets from operations	$209,078


14	Alternative Asset Allocation Fund \| Semiannual report	See notes to financial statements

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

Statements of changes in net assets


	Six months
	ended	Year
	2-28-11	ended
	(unaudited)	8-31-10
Increase (decrease) in net assets

From operations
Net investment income	$16,649	$45,455
Net realized gain	340,211	48,894
Change in net unrealized appreciation (depreciation)	(147,782)	61,092

Increase in net assets resulting from operations	209,078	155,441

Distributions to shareholders
From net investment income
Class A	(20,910)	(47,301)
From net realized gain
Class A	(65,750)	(16,354)

Total distributions	(86,660)	(63,655)

From Fund share transactions (Note 5)	1,727,064	63,655

Total increase	1,849,482	155,441

Net assets

Beginning of period	1,436,989	1,281,548

End of period	$3,286,471	$1,436,989

Undistributed net investment income	$4,047	$8,308


See notes to financial statements	Semiannual report \| Alternative Asset Allocation Fund	15

Financial highlights

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


CLASS A SHARES Period ended	2-28-11¹	8-31-10	8-31-09²

Per share operating performance

Net asset value, beginning of period	$13.72	$12.82	$10.00
Net investment income^3,4	0.14	0.44⁵	0.10
Net realized and unrealized gain on investments	1.69	1.10	2.72
Total from investment operations	1.83	1.54	2.82
Less distributions
From net investment income	(0.20)	(0.47)	—
From net realized gain	(0.63)	(0.17)	—
Total distributions	(0.83)	(0.64)	—
Net asset value, end of period	$14.72	$13.72	$12.82
Total return (%)^6,7	13.56⁸	12.12	28.20⁸

Ratios and supplemental data

Net assets, end of period (in millions)	$3	$1	$1
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	4.42⁹	5.03	6.78⁹
Expenses including reductions and amounts recaptured¹⁰	0.72⁹	0.71	0.55⁹
Net investment income⁴	1.96⁹	3.25⁵	1.33⁹
Portfolio turnover (%)	59	9	1

¹Semiannual period from 9-1-10 to 2-28-11. Unaudited.
²The inception date for Class A shares is 1-2-09.
³Based on the average daily shares outstanding.
⁴Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.
⁵All expenses have been annualized except Tax expense, which was 0.01% of average net assets. This expense decreased the net investment income (loss) by $0.01 and the net investment income (loss) ratio by 0.05%.
⁶Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁷Does not reflect the effect of sales charges, if any.
⁸Not annualized.
⁹Annualized.
¹⁰Ratios do not include expense indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Fund. The range of expense ratios of the underlying funds held by the Fund was as follows: 0.74% to 1.38% for 2-28-11, 0.70% to 1.17% for 8-31-10 and 0.71% to 1.18% for 8-31-09.


16	Alternative Asset Allocation Fund \| Semiannual report	See notes to financial statements


CLASS I SHARES Period ended	2-28-11^1,2

Per share operating performance

Net asset value, beginning of period	$14.21
Net investment income	0.03^3,4
Net realized and unrealized gain on investments	0.49
Total from investment operations	0.52
Net asset value, end of period	$14.73
Total return (%)	3.66^5,6

Ratios and supplemental data

Net assets, end of period (in thousands)	402
Ratios (as a percentage of average net assets):
Expenses before reductions and amounts recaptured	4.35⁷
Expenses including reductions and amounts recaptured⁸	0.19⁷
Net investment income	1.39^4,7
Portfolio turnover (%)	59

¹Period from 12-31-10 to 2-28-11. Unaudited.
²The inception date for Class I shares is 12-31-10.
³Based on the average daily shares outstanding.
⁴Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests.
⁵Not annualized.
⁶Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁷Annualized.
⁸Ratios do not include expense indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Fund. The range of expense ratios of the underlying funds held by the Fund was as follows: 0.74% to 1.38% for 2-28-11.


See notes to financial statements	Semiannual report \| Alternative Asset Allocation Fund	17

Notes to financial statements
(unaudited)

Note 1 — Organization

John Hancock Alternative Asset Allocation Fund (the Fund) is a diversified series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the Fund is to seek long term growth of capital.

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

The Funds may offer multiple classes of shares. The shares currently offered are detailed in the Statements of Assets and Liabilities. Class A shares are open to all investors. Class I shares are offered to institutions and certain investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, transfer agent fees, state registration fees and printing and postage for each class may differ.

The accounting policies of the underlying funds of the Fund are outlined in the underlying funds’ shareholder reports, available without charge by calling 1-800-344-1029 and jhfunds.com, on the Securities and Exchange Commission (SEC) Web site at www.sec.gov or at the SEC’s public reference room in Washington, D.C. The underlying funds are not covered by this report.

Note 2 — Significant accounting policies

As of February 28, 2011, all investments are categorized as Level 1 under the hierarchy described above. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the six months ended February 28, 2011, there were no significant transfers in or out of Level 1 and Level 2 assets.

In order to value the securities, the Fund uses the following valuation techniques. Equity securities, including exchange-traded funds, held by the Fund are valued at the last sale price or official closing


18	Alternative Asset Allocation Fund \| Semiannual report

price on the principal securities exchange on which they trade. In the event there were no sales during the day or closing prices are not available, then securities are valued using the last quoted bid or evaluated price. Investments by the fund in underlying affiliated funds and/or other investment companies are valued at their respective net asset values each business day. Certain 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. Other portfolio securities and assets, where market quotations are not readily available, are valued at fair value, as determined in good faith by the Fund’s Pricing Committee, following procedures established by the Board of Trustees.

In addition, the Fund and other affiliated funds have entered into an agreement with State Street Bank and Trust Company (SSBT) which enables them to participate in a $200 million unsecured committed line of credit. A commitment fee, 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 pro rata basis and is reflected in other expenses on the Statement of Operations. For the six months ended February 28, 2011, the Fund had no significant borrowings under the line of credit.

Effective March 30, 2011, the line of credit with SSBT expired and a similar arrangement was established with Citibank N.A.


Semiannual report \| Alternative Asset Allocation Fund	19

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The Fund generally declares and pays dividends and capital gain distributions, if any, at least annually.

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.

Note 3 — Guarantees and indemnifications

Note 4 — Fees and transactions with affiliates

Management fee. The Fund has an investment management contract with the Adviser under which the Fund pays a monthly management fee to the Adviser. The management fee has two components: (a) a fee on assets invested in a fund of the Trust, John Hancock Trust (JHT) or John Hancock Funds III (JHF III) excluding John Hancock Money Market Trust B, John Hancock 500 Index Trust B, John Hancock International Equity Index Trust B and John Hancock Total Bond Market Trust B (affiliated assets); and (b) a fee on assets invested in investments other than a fund of the Trust or JHF III (other assets). The fee on affiliated assets is 0.150% on an annual basis of the current value of the net assets of the fund (together with the assets of any other applicable fund identified in the advisory agreement) (aggregate net assets). The fee on other assets is 0.600% on an annual basis of aggregate net assets. The Adviser has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC (formerly, MFC Global Investment Management (U.S.), LLC) and John Hancock Asset Management a division of Manulife Asset Management (North America) Limited (formerly, MFC Global Investment Management (U.S.A.) Limited), an indirectly owned subsidiaries of MFC and affiliates of the Adviser. Manulife Asset Management (US), LLC and Manulife Asset Management (North America) Limited are doing business as John Hancock Asset Management. The Fund is not responsible for payment of the subadvisory fees.

The investment management fees incurred for the six months ended February 28, 2011 were equivalent to an annual effective rate of 0.18% of the Fund’s average daily net assets.

Expense reimbursements. The Adviser has contractually agreed to reimburse the Fund for certain Fund expenses that exceed 0.04% of the Fund’s average net assets. Expenses excluded from this


20	Alternative Asset Allocation Fund \| Semiannual report

waiver are advisory, transfer agent fee, Rule 12b-1 fees, portfolio brokerage commissions, interest, blue sky, printing and postage, service fees, acquired fees and other extraordinary expenses not incurred in the ordinary course of the Fund’s business. The Adviser has contractually agreed to waive 0.10% of the Fund’s average net assets. The current expense limitation agreements expire on December 31, 2011 unless renewed by mutual agreement of the Fund and the Adviser based upon a determination that this is appropriate under the circumstances at that time.

Effective January 1, 2011, the Adviser has contractually agreed to waive fees and/or reimburse certain class specific expenses, including 12b-1 fees, transfer agent fees, service fees, state registration fees and printing and postage for Class A and Class I shares, to the extent that the above expenses for each class exceed 0.66% and 0.20%, of the average daily net assets attributable to the classes. This expense fee waiver and/or reimbursement will continue in effect until December 31, 2011.

Accordingly, the expense reduction related to the agreement above amounted to $30,301 and $1,891 for Class A and Class I shares, respectively, for the six months ended February 28, 2011.

Expense recapture. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements for a period of three years following the beginning of the month in which such reimbursements or waivers originally occurred. The table below outlines the amounts of waived or reimbursed expenses subject to potential recovery and the respective expiration dates. Certain reimbursements or waivers are not subject to recapture.


AMOUNTS ELIGIBLE	AMOUNTS ELIGIBLE	AMOUNTS ELIGIBLE	AMOUNT RECOVERED
FOR RECOVERY THROUGH	FOR RECOVERY THROUGH	FOR RECOVERY THROUGH	DURING PERIOD ENDED
AUGUST 1, 2012	AUGUST 1, 2013	FEBRUARY 1, 2014	FEBRUARY 28, 2011


$44,590	$60,119	$31,846	—

Accounting and legal services. Pursuant to a service agreement the Fund reimburses the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended February 28, 2011, amounted to an annual rate of 0.01% of the Fund’s average daily net assets.

Distribution plans. The Fund has a distribution agreement with the Distributor. The Fund has adopted distribution plans with respect to Class A shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the Fund. The Fund may pay up to the following contractual rates of distribution fees under these arrangements, expressed as an annual percentage of average daily net assets of 0.30% for Class A shares.

Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $28,660 for the six months ended February 28, 2011. Of this amount, $4,716 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $23,944 was paid as sales commissions to broker-dealers.

Transfer agent fees. The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services or Transfer Agent), an affiliate of the Adviser. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Fund and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may


Semiannual report \| Alternative Asset Allocation Fund	21

be reduced by certain revenues that Signature Services receive in connection with the service they provide to the funds. Signature Services Cost is calculated monthly and allocated, as applicable, to four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.

Class level expenses. Class level expenses for the six months ended February 28, 2011 were:


	DISTRIBUTION	TRANSFER	STATE	PRINTING AND
CLASS	AND SERVICE FEES	AGENT FEES	REGISTRATION FEES	POSTAGE

Class A	$2,455	$1,467	$226	$170
Class I	—	23	—	12
Total	$2,455	$1,490	$226	$182

Note 5 — Fund share transactions

Transactions in Fund shares for the six months ended February 28, 2011, and for the year ended August 31, 2010, were as follows:


	Six months ended 2-28-11		Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	105,244	$1,536,522	—	—
Distributions reinvested	6,124	86,659	4,761	$63,655
Repurchased	(20,184)	(287,717)	—	—
Net increase	91,184	$1,335,464	4,761	$63,655

Class I shares¹

Sold	27,264	$391,600	—	—
Net increase	27,264	$391,600	—	—

Net increase	118,448	$1,727,064	—	—

¹Period from 12-31-10 (inception date) to 2-28-11.

Note 6 — Purchase and sale of securities

Purchases and sales of securities, other than short-term securities, aggregated $2,609,791 and $1,054,967, respectively, for the six months ended February 28, 2011.

Note 7 – Investment in affiliated underlying funds

Alternative Asset Allocation Fund invests primarily in affiliated underlying funds that are managed by the Adviser and affiliates. The Fund does not invest in the affiliated underlying funds for the purpose of exercising management or control; however, the Fund’s investment may represent a significant portion of each underlying Fund’s net assets. For the six months ended February 28, 2011, the Fund does not hold 5% or more of an underlying Funds’ net assets.


22	Alternative Asset Allocation Fund \| Semiannual report

Evaluation of Subadvisory Agreement by the Board of Trustees

At its meeting on December 17, 2010, the Board of Trustees (the Board) of John Hancock Funds II (the Trust), including all of the Independent Trustees, approved the appointment of John Hancock Asset Management a division of Manulife Asset Management (US) LLC (John Hancock Asset Management or the Subadviser) as an additional subadviser to the Alternative Asset Allocation Fund (the Portfolio), a series of the Trust.

This section describes the evaluation by the Board of Trustees of the amendment to the subadvisory agreement between John Hancock Investment Management Services, LLC (the Adviser), the adviser to the Portfolio, and the Subadviser relating to the Portfolio (the Subadvisory Agreement Amendment).

Evaluation of Subadvisory Agreement by the Board of Trustees

The Board, including the Independent Trustees, is responsible for approving the Adviser’s selection of fund subadvisers and approving the funds’ subadvisory agreements, their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s 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 industry) 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 considered by the Board with respect to each fund are:

1. the nature, extent and quality of the services to be provided by the subadviser to the fund;

2. the investment performance of the fund and its subadviser;

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 fund shareholders;

4. the costs of the services to be provided and the profits to be realized by the subadviser and its affiliates (including the Adviser with respect to affiliated subadvisers) from the relationship with the Trust; and

5. comparative services rendered and comparative subadvisory fee rates.

In making its determination and with reference to the factors that it considers, the Board reviews:

1. information relating to the subadviser’s business, including current subadvisory services to the Trust (and other funds in the John Hancock family of funds);

2. the performance of the fund and the performance of other John Hancock funds managed by the subadviser; and

3. the subadvisory fee for the fund, including any breakpoints.

The Board approved the Subadvisory Agreement Amendment with the Subadviser for the Portfolio at its meeting on December 17, 2010. Particular considerations of the Board in approving the Subadvisory Agreement Amendment included the following:

1. The subadvisory fees for the Portfolio are paid by the Adviser, not the Portfolio, and are reasonable, and approval of the Subadvisory Agreement Amendment will not result in any change in the advisory fees for the Portfolio.


Semiannual report \| Alternative Asset Allocation Fund	23

2. Approval of the Subadvisory Agreement Amendment reflects the re-allocation of subadvisory services between the Subadviser and John Hancock Asset Management a division of Manulife Asset Management (North America) Limited (John Hancock Asset Management (North America)), the current subadviser to the Portfolio, each of which is affiliated with the Adviser.

3. The personnel of John Hancock Asset Management (North America) and the Adviser who have currently and previously managed the assets of the Portfolio, with John Hancock Asset Management (North America) and the Subadviser, are expected to continue to manage the Portfolios and the Board is generally satisfied with their skill and experience and with the performance of the Portfolio.

4. The performance of the Portfolio as noted below and management’s discussion of the same:

a. The Alternative Asset Allocation Fund has outperformed its peer group and benchmark index for the one year and since inception periods ended September 30, 2010.

5. John Hancock Asset Management has demonstrated skill as a manager, is currently the subadviser to multiple funds of the Trust and John Hancock Trust and may be expected to provide a high quality of investment management services and personnel to the Portfolio.

In addition, the Board reviewed the subadvisory fees to be paid to the Subadviser with respect to the Portfolio, which operates as a fund of funds and invests in underlying funds. The Board concluded, with respect to the Portfolio, that the subadvisory fee is based on services provided that are in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying funds. The Board also concluded that the additional services are necessary because of the differences between the investment policies, strategies and techniques of the Portfolio and those of its underlying funds.


24	Alternative Asset Allocation Fund \| Semiannual report

More information


Trustees	Investment adviser
James M. Oates, Chairman	John Hancock Investment Management
James R. Boyle†	Services, LLC
Charles L. Bardelis*
Peter S. Burgess*	Subadviser
Grace K. Fey	John Hancock Asset Management
Theron S. Hoffman
Hassell H. McClellan	Principal distributor
Steven M. Roberts*	John Hancock Funds, LLC

Officers	Custodian
Hugh McHaffie	State Street Bank and Trust Company
President
	Transfer agent
Thomas M. Kinzler	John Hancock Signature Services, Inc.
Secretary and Chief Legal Officer
	Legal counsel
Francis V. Knox, Jr.	K&L Gates LLP
Chief Compliance Officer

Michael J. Leary	The report is certified under the Sarbanes-Oxley
Treasurer	companies to affirm that, to the best of their
	knowledge, the information in their financial reports
Charles A. Rizzo	is fairly and accurately stated in all material respects.
Chief Financial Officer

John G. Vrysen
Chief Operating Officer

*Member of the Audit Committee
†Non-Independent Trustee

We make this information on your fund, as well as monthly portfolio holdings, and other fund details available on our Web site www.jhfunds.com or by calling 1-800-225-5291.


You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 55913	Mutual Fund Image Operations
	Boston, MA 02205-5913	30 Dan Road
		Canton, MA 02021


Semiannual report \| Alternative Asset Allocation Fund	25

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 Alternative Asset Allocation.	345SA 2/11
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	4/11

John Hancock

Lifecycle 2045 Portfolio

Goal and strategy

To seek high total return until the Portfolio’s target retirement date. Under normal market conditions, the Portfolio invests substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire around the year 2045.


Asset Allocation

Equity	93% of Total

U.S. Large Cap	46%

International Large Cap	11%

Emerging Markets	9%

U.S. Mid Cap	9%

U.S. Small Cap	5%

International Small Cap	4%

Large Blend	3%

Natural Resources	3%

Real Estate	1%

Small Growth	1%

Small Value	1%

Fixed Income	7% of Total

Currency	2%

Bank Loan	1%

Global Bond	1%

High-Yield Bond	1%

Intermediate Bond	1%

Multi-Sector Bond	1%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2045 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 25.63%, 25.49%, 25.73%, 25.79%, 25.91%, and 26.01%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 26.17%.¹The Morningstar, Inc. Target-Date 2041–2045 category average returned 24.62%.²

Performance review

The Portfolio outperformed the Morningstar average (based on Class A shares), but modestly underperformed the blended benchmark. Asset allocation detracted slightly from relative performance, with positive results from allocations in sectors such as small- and mid-cap equities, global natural resources, bank loans, multi-sector and high-yield bonds outweighed by underperformance principally in emerging and international developed equities and currency.

Manager selection also hurt performance slightly relative to the blended benchmark. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, selection in sectors such as consumer discretionary, and its overweight position to Hong Kong. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

Conversely, there were a number of bright spots among manager performance. Value & Restructuring Fund (Columbia) had success with overweight positions and strong stock selection in industrials and materials. Blue Chip Growth Fund (T. Rowe Price) contributed positively, buoyed by overweight positions and good stock selection in technology, while underweighting the consumer staples sector. Alpha Opportunities Fund (Wellington) had strong stock selection in the technology and financials sectors.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. The Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap value managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price), which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.

This commentary reflects the views of the portfolio management team through the end of the Portfolio’s period discussed in this report. The team’s 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.


4	Lifecycle 2045 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$10,991	$11,039	$11,172	$11,315	$11,315

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	10,738	10,738	10,738	10,738	10,738

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 R1, Class R3, Class R4, Class R5 and Class 1 shares, respectively, as of 2-28-11. 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 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 100% Index 1 / 0% Index 2, and from 12-1-07 to 2-28-11 blend is 95% Index 1 / 5% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	16.04%	21.88%	22.11%	22.33%	22.75%	22.70%

Average annual total returns — Since inception³	1.20%	2.20%	2.30%	2.59%	2.89%	2.89%

Cumulative returns — 6 months	19.30%	25.49%	25.73%	25.79%	25.91%	26.01%

Cumulative returns — 1 year	16.04%	21.88%	22.11%	22.33%	22.75%	22.70%

Cumulative returns — Since inception³	5.31%	9.91%	10.39%	11.72%	13.15%	13.15%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charges are not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.35%, Class R1 — 1.50%, Class R3 — 1.40%, Class R4 — 1.15% and Class R5 — 0.85%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.46%, Class R1 — 2.22%, Class R3 — 3.07%, Class R4 — 4.38% and Class R5 —4.06%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.90%.

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 and chart do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2045 Portfolio	5

John Hancock

Lifecycle 2040 Portfolio

Goal and strategy


Asset Allocation

Equity	93% of Total

U.S. Large Cap	46%

International Large Cap	11%

Emerging Markets	9%

U.S. Mid Cap	9%

U.S. Small Cap	5%

International Small Cap	4%

Large Blend	3%

Natural Resources	3%

Real Estate	1%

Small Growth	1%

Small Value	1%

Fixed Income	7% of Total

Currency	2%

Bank Loan	1%

Global Bond	1%

High-Yield Bond	1%

Intermediate Bond	1%

Multi-Sector Bond	1%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2040 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 25.60%, 25.61%, 25.60%, 25.67%, 25.91%, and 25.89%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 26.17%.¹The Morningstar, Inc. Target-Date 2036–2040 category average returned 22.50%.²

Performance review

The Portfolio handily outperformed the Morningstar average (based on Class A shares), but modestly underperformed the blended benchmark. Asset allocation detracted slightly from relative performance, with positive results from allocations in sectors such as small- and mid-cap equities, global natural resources, banks loans and multi-sector and high-yield bonds outweighed by underperformance principally in emerging and international developed equities, and currency.

Manager selection also hurt performance slightly relative to the blended benchmark. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, and stock selection in sectors such as consumer discretionary. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price,) which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


6	Lifecycle 2040 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$11,014	$11,041	$11,173	$11,327	$11,316

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	10,738	10,738	10,738	10,738	10,738

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 100% Index 1 / 0% Index 2, and from 12-1-07 to 2-28-11 blend is 95% Index 1 / 5% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	16.03%	22.00%	22.14%	22.36%	22.75%	22.58%

Average annual total returns — Since inception³	1.25%	2.25%	2.31%	2.59%	2.91%	2.89%

Cumulative returns — 6 months	19.28%	25.61%	25.60%	25.67%	25.91%	25.89%

Cumulative returns — 1 year	16.03%	22.00%	22.14%	22.36%	22.75%	22.58%

Cumulative returns — Since inception³	5.53%	10.14%	10.41%	11.73%	13.27%	13.16%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.35%, Class R1 — 1.50%, Class R3 — 1.40%, Class R4 — 1.15% and Class R5 — 0.85%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.44%, Class R1 — 1.98%, Class R3 — 1.96%, Class R4 — 7.01% and Class R5 — 2.19%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.90%.

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 and chart do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2040 Portfolio	7

John Hancock

Lifecycle 2035 Portfolio

Goal and strategy


Asset Allocation

Equity	93% of Total

U.S. Large Cap	46%

International Large Cap	11%

Emerging Markets	9%

U.S. Mid Cap	9%

U.S. Small Cap	5%

International Small Cap	4%

Large Blend	3%

Natural Resources	3%

Real Estate	1%

Small Growth	1%

Small Value	1%

Fixed Income	7% of Total

Currency	2%

Bank Loan	1%

Global Bond	1%

High-Yield Bond	1%

Intermediate Bond	1%

Multi-Sector Bond	1%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2035 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 25.67%, 25.53%, 25.56%, 25.77%, 25.96%, and 26.06%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 26.17%.¹The Morningstar, Inc. Target-Date 2031–2035 category average returned 23.28%.²

Performance review

The Portfolio outperformed the Morningstar average (based on Class A shares), but modestly underperformed the blended benchmark. Asset allocation detracted slightly from relative performance, with positive results from allocations in sectors such as small- and mid-cap equities, global natural resources, bank loans and multi-sector and high-yield bonds outweighed by underperformance principally in emerging and international developed equities, and currency.

Manager selection also hurt performance slightly relative to the blended benchmark. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, and stock selection in sectors such as consumer discretionary. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

Conversely, there were a number of bright spots among manager performance. Value & Restructuring Fund (Columbia) had success with overweight positions and strong stock selection in industrials and materials. Blue Chip Growth Fund (T. Rowe Price) contributed positively, buoyed by overweight positions and good stock selection in technology. Alpha Opportunities Fund (Wellington) had strong stock selection in the technology and financials sectors. All Cap Value Fund (Lord Abbett) was boosted by selections in consumer staples, industrials and consumer discretionary.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price), which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


8	Lifecycle 2035 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$11,003	$11,041	$11,205	$11,327	$11,328

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	10,735	10,735	10,735	10,735	10,735

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 98% Index 1 / 2% Index 2, and from 12-1-07 to 2-28-11 blend is 95% Index 1 / 5% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	15.98%	21.93%	21.96%	22.63%	22.81%	22.76%

Average annual total returns — Since inception³	1.23%	2.23%	2.31%	2.66%	2.91%	2.91%

Cumulative returns — 6 months	19.37%	25.53%	25.56%	25.77%	25.96%	26.06%

Cumulative returns — 1 year	15.98%	21.93%	21.96%	22.63%	22.81%	22.76%

Cumulative returns — Since inception³	5.44%	10.03%	10.41%	12.05%	13.27%	13.28%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.35%, Class R1 — 1.50%, Class R3 — 1.45%, Class R4 — 1.15% and Class R5 — 0.85%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.42%, Class R1 — 1.97%, Class R3 — 2.21%, Class R4 — 3.30% and Class R5 — 3.15%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.90%.

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 and chart above do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2035 Portfolio	9

John Hancock

Lifecycle 2030 Portfolio

Goal and strategy


Asset Allocation

Equity	89% of Total

U.S. Large Cap	44%

International Large Cap	11%

U.S. Mid Cap	9%

Emerging Markets	8%

International Small Cap	4%

U.S. Small Cap	4%

Large Blend	3%

Natural Resources	3%

Real Estate	2%

Small Value	1%

Fixed Income	11% of Total

Intermediate Bond	3%

Multi-Sector Bond	2%

Currency	2%

Treasury Inflation-
Protected Securities	1%

High-Yield Bond	1%

Global Bond	1%

Bank Loan	1%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2030 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 24.71%, 24.63%, 24.66%, 24.84%, 25.03%, and 25.00%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 25.08%.¹The Morningstar, Inc. Target-Date 2026–2030 category average returned 19.76%.²

Performance review

The Portfolio outperformed the Morningstar average (based on Class A shares), but modestly underperformed the blended benchmark. Asset allocation detracted slightly from relative performance, with positive results from allocations in sectors such as small- and mid-cap equities, global natural resources, bank loans, and multi-sector and high-yield bonds outweighed by underperformance principally in emerging and international developed equities, and REITs.

Manager selection also hurt performance slightly relative to the blended benchmark. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, and stock selection in sectors such as consumer discretionary. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

Conversely, there were a number of bright spots among manager performance. Value & Restructuring Fund (Columbia) had success with overweight positions and strong stock selection in industrials and materials. Blue Chip Growth Fund (T. Rowe Price) contributed positively, buoyed by overweight positions and good stock selection in technology. Alpha Opportunities Fund (Wellington) had strong stock selection in the technology and financials sectors. All Cap Value Fund (Lord Abbett) was boosted by selections in consumer staples, industrials and consumer discretionary.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price), which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

¹The blended index is comprised of the S&P 500 Index (S&P) and the Barclays Capital U.S. Aggregate Bond Index (BarCap) and it adjusts over time: from inception to 11-30-07 blend was 95% S&P/5% BarCap, from 12-1-07 to 11-30-08, blend was 94% S&P/6% BarCap, from 12-1-08 to 11-30-09, blend was 93% S&P/7% BarCap, from 12-1-09 to 11-30-10, blend was 92% S&P/8% BarCap and from 12-1-10 to 2-28-11, blend is 91% S&P/9% BarCap.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


10	Lifecycle 2030 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$10,910	$10,948	$11,087	$11,228	$11,220

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	10,705	10,705	10,705	10,705	10,705

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 95% Index 1 / 5% Index 2, from 12-1-07 to 11-30-08 blend is 94% Index 1 / 6% Index 2, from 12-1-08 to 11-30-09 blend is 93% Index 1 / 7% Index 2, from 12-1-09 to 11-30-10 blend is 92% Index 1 / 8% Index 2 and from 12-1-10 to 2-28-11 blend is 91% Index 1 / 9% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	15.48%	21.34%	21.51%	21.84%	22.17%	22.00%

Average annual total returns — Since inception³	1.09%	2.03%	2.11%	2.41%	2.71%	2.69%

Cumulative returns — 6 months	18.45%	24.63%	24.66%	24.84%	25.03%	25.00%

Cumulative returns — 1 year	15.48%	21.34%	21.51%	21.84%	22.17%	22.00%

Cumulative returns — Since inception³	4.80%	9.10%	9.48%	10.87%	12.28%	12.20%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.33%, Class R1 — 1.48%, Class R3 — 1.43%, Class R4 — 1.13% and Class R5 — 0.83%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.41%, Class R1 — 1.84%, Class R3 — 2.06%, Class R4 — 5.59% and Class R5 — 1.66%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.88%.

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 and chart above do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2030 Portfolio	11

John Hancock

Lifecycle 2025 Portfolio

Goal and strategy


Asset Allocation

Equity	81% of Total

U.S. Large Cap	42%

International Large Cap	9%

U.S. Mid Cap	8%

Emerging Markets	7%

International Small Cap	4%

Large Blend	3%

U.S. Small Cap	3%

Natural Resources	2%

Real Estate	2%

Small Value	1%

Fixed Income	19% of Total

Intermediate Bond	5%

Multi-Sector Bond	4%

Bank Loan	3%

High-Yield Bond	3%

Currency	2%

Global Bond	1%

Treasury Inflation-
Protected Securities	1%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2025 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 22.58%, 22.50%, 22.67%, 22.83%, 22.92%, and 22.87%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 22.78%.¹The Morningstar, Inc. Target-Date 2021–2025 category average returned 19.72%.²

Performance review

The Portfolio outperformed the Morningstar average (based on Class A shares), and slightly trailed the blended benchmark. Asset allocation contributed modestly to relative performance, with positive results from allocations in sectors such as small- and mid-cap equities, global natural resources, bank loans and multi-sector and high-yield bonds outweighing underperformance principally in emerging and international developed equities.

Manager selection hurt performance slightly relative to the blended benchmark. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, stock selection in sectors such as consumer discretionary and its overweight position to Hong Kong. We remain fully confident in these fine managers who we believe have enjoyed long-term success with excellent risk-adjusted performance.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price), which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

¹The blended index is comprised of the S&P 500 Index (S&P) and the Barclays Capital U.S. Aggregate Bond Index (BarCap) and it adjusts over time: from inception to 11-30-07 blend was 89% S&P/11% BarCap from 12-1-07 to 11-30-08, blend was 88% S&P/12% BarCap, from 12-1-08 to 11-30-09, blend was 86% S&P/14% BarCap, from 12-1-09 to 11-30-10, blend was 85% S&P/15% BarCap and from 12-1-10 to 2-28-11, blend is 83% S&P/17% BarCap.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


12	Lifecycle 2025 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$10,995	$11,033	$11,184	$11,304	$11,308

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	10,832	10,832	10,832	10,832	10,832

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 89% Index 1 / 11% Index 2, from 12-1-07 to 11-30-08 blend is 88% Index 1 / 12% Index 2, from 12-1-08 to 11-30-09 blend is 86% Index 1 / 14% Index 2, from 12-1-09 to 11-30-10 blend is 85% Index 1 / 15% Index 2 and from 12-1-10 to 2-28-11 blend is 83% Index 1 / 17% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	14.30%	20.17%	20.20%	20.65%	20.88%	20.82%

Average annual total returns — Since inception³	1.27%	2.21%	2.29%	2.61%	2.86%	2.87%

Cumulative returns — 6 months	16.39%	22.50%	22.67%	22.83%	22.92%	22.87%

Cumulative returns — 1 year	14.30%	20.17%	20.20%	20.65%	20.88%	20.82%

Cumulative returns — Since inception³	5.62%	9.95%	10.33%	11.84%	13.04%	13.08%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.32%, Class R1 — 1.47%, Class R3 — 1.42%, Class R4 — 1.12% and Class R5 — 0.82%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.39%, Class R1 — 1.87%, Class R3 — 1.92%, Class R4 — 2.75% and Class R5 — 1.88%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.87%.

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 and chart above do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2025 Portfolio	13

John Hancock

Lifecycle 2020 Portfolio

Goal and strategy


Asset Allocation

Equity	70% of Total

U.S. Large Cap	38%

International Large Cap	8%

Emerging Markets	6%

U.S. Mid Cap	6%

International Small Cap	3%

U.S. Small Cap	3%

Large Blend	2%

Natural Resources	2%

Real Estate	2%

Fixed Income	30% of Total

Intermediate Bond	9%

Multi-Sector Bond	7%

High-Yield Bond	5%

Bank Loan	3%

Currency	2%

Global Bond	2%

Treasury Inflation-
Protected Securities	2%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2020 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 19.96%, 19.82%, 19.88%, 20.09%, 20.37%, and 20.20%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 19.47%.¹The Morningstar, Inc Target-Date 2016–2020 category average returned 15.53%.²

Performance review

The Portfolio outperformed the Morningstar average and the blended benchmark (based on Class A shares). Asset allocation drove most of the positive relative performance, with strong results from allocations in sectors such as small- and mid-cap equities, global natural resources, bank loans and multi-sector and high-yield bonds outweighing underperformance principally in emerging and international developed equities and REITs.

Manager selection also added to positive performance relative to the blended benchmark. Value & Restructuring Fund (Columbia) had success with overweight positions and strong stock selection in industrials and materials. Blue Chip Growth Fund (T. Rowe Price) contributed positively, buoyed by overweight positions, and good stock selection, in technology, while underweighting the consumer staples sector. Alpha Opportunities Fund (Wellington) had strong stock selection in the technology and financials sectors. Strategic Income Opportunities Fund (John Hancock) added value through its overweighting of high-yield bonds and exposure to the Canadian dollar.

Conversely, there were a few managers who detracted from relative performance. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, stock selection in sectors such as consumer discretionary, and its overweight position to Hong Kong. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price), which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

¹The blended index is comprised of the S&P 500 Index (S&P) and the Barclays Capital U.S. Aggregate Bond Index (BarCap) and it adjusts over time: from inception to 11-30-07 blend was 81% S&P/19% BarCap from 12-1-07 to 11-30-08, blend was 79% S&P/21% BarCap, from 12-1-08 to 11-30-09, blend was 77% S&P/23% BarCap, from 12-1-09 to 11-30-10, blend was 74% S&P/26% BarCap and from 12-1-10 to 2-28-11, blend is 72% S&P/28% BarCap.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


14	Lifecycle 2020 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$11,209	$11,236	$11,367	$11,533	$11,525

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	11,042	11,042	11,042	11,042	11,042

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 81% Index 1 / 19% Index 2, from 12-1-07 to 11-30-08 blend is 79% Index 1 / 21% Index 2, from 12-1-08 to 11-30-09 blend is 77% Index 1 / 23% Index 2, from 12-1-09 to 11-30-10 blend is 74% Index 1 / 26% Index 2 and from 12-1-10 to 2-28-11 blend is 72% Index 1 / 28% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	12.81%	18.57%	18.62%	18.97%	19.39%	19.22%

Average annual total returns — Since inception³	1.67%	2.66%	2.72%	3.00%	3.34%	3.33%

Cumulative returns — 6 months	13.94%	19.82%	19.88%	20.09%	20.37%	20.20%

Cumulative returns — 1 year	12.81%	18.57%	18.62%	18.97%	19.39%	19.22%

Cumulative returns — Since inception³	7.46%	12.09%	12.36%	13.67%	15.33%	15.25%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The follow ing expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.31%, Class R1 — 1.46%, Class R3 — 1.41%, Class R4 — 1.11% and Class R5 — 0.81%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.38%, Class R1 — 1.79%, Class R3 — 1.84%, Class R4 — 5.77% and Class R5 — 1.62%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.86%.

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 and chart above do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2020 Portfolio	15

John Hancock

Lifecycle 2015 Portfolio

Goal and strategy


Asset Allocation

Equity	58% of Total

U.S. Large Cap	34%

International Large Cap	6%

Emerging Markets	5%

U.S. Mid Cap	4%

International Small Cap	2%

Large Blend	2%

Natural Resources	2%

Real Estate	2%

U.S. Small Cap	1%

Fixed Income	42% of Total

Intermediate Bond	13%

Multi-Sector Bond	10%

High-Yield Bond	7%

Bank Loan	4%

Global Bond	3%

Treasury Inflation-
Protected Securities	3%

Currency	2%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2015 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 17.00%, 16.88%, 16.93%, 17.12%, 17.29%, and 17.24%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 15.93%.¹The Morningstar, Inc. Target-Date 2011–2015 category average returned 14.60%.²

Performance review

The Portfolio outperformed the Morningstar average and the blended benchmark (based on Class A shares). Asset allocation drove most of the positive relative performance, with strong results from allocations in sectors such as mid- and small-cap equities, global natural resources, bank loans, and multi-sector and high-yield bonds outweighing underperformance principally in emerging and international developed equities, and REITs.

Manager selection also added to positive performance relative to the blended benchmark. Strategic Income Opportunities Fund (John Hancock) added value through its overweighting of high-yield bonds and exposure to the Canadian dollar. Value & Restructuring Fund (Columbia) had success with overweight positions and strong stock selection in industrials and materials. Alpha Opportunities Fund (Wellington) had strong stock selection in the technology and financials sectors. High Yield Fund (Western Asset Management) gained through its overweighting in lower quality issues, and strong selection in that sector.

Conversely, there were a few managers who detracted from relative performance. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. U.S. High Yield Fund (Wells Capital) lost ground due to overweighting higher-quality securities. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. International Small Cap Fund (Franklin) detracted from performance, hurt by its positions in cash, stock selection in sectors such as consumer discretionary, and its overweight position to Hong Kong. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of the Portfolio’s assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value (T. Rowe Price), which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

¹The blended index is comprised of the S&P 500 Index (S&P) and the Barclays Capital U.S. Aggregate Bond Index (BarCap) and it adjusts over time: from inception to 11-30-07 blend was 70% S&P/30% BarCap from 12-1-07 to 11-30-08, blend was 67% S&P/33% BarCap, from 12-1-08 to 11-30-09, blend was 65% S&P/35% BarCap, from 12-1-09 to 11-30-10, blend was 62% S&P/38% BarCap and from 12-1-10 to 2-28-11, blend is 60% S&P/40% BarCap.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


16	Lifecycle 2015 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$11,295	$11,322	$11,465	$11,621	$11,622

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	11,351	11,351	11,351	11,351	11,351

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 70% Index 1 / 30% Index 2, from 12-1-07 to 11-30-08 blend is 67% Index 1 / 33% Index 2, from 12-1-08 to 11-30-09 blend is 65% Index 1 / 35% Index 2, from 12-1-09 to 11-30-10 blend is 62% Index 1 / 38% Index 2 and from 12-1-10 to 2-28-11 blend is 60% Index 1 / 40% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	11.22%	16.88%	16.93%	17.39%	17.70%	17.65%

Average annual total returns — Since inception³	1.87%	2.85%	2.90%	3.20%	3.52%	3.52%

Cumulative returns — 6 months	11.10%	16.88%	16.93%	17.12%	17.29%	17.24%

Cumulative returns — 1 year	11.22%	16.88%	16.93%	17.39%	17.70%	17.65%

Cumulative returns — Since inception³	8.38%	12.95%	13.22%	14.65%	16.21%	16.22%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.30%, Class R1 — 1.45%, Class R3 — 1.40%, Class R4 — 1.10% and Class R5 — 0.80%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.38%, Class R1 — 1.96%, Class R3 — 1.95%, Class R4 — 7.52% and Class R5 — 3.96%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.85%.

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 and chart above do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2015 Portfolio	17

John Hancock

Lifecycle 2010 Portfolio

Goal and strategy


Asset Allocation

Equity	47% of Total

U.S. Large Cap	28%

International Large Cap	5%

Emerging Markets	3%

Real Estate	3%

U.S. Mid Cap	3%

Large Blend	2%

International Small Cap	1%

Natural Resources	1%

U.S. Small Cap	1%

Fixed Income	53% of Total

Intermediate Bond	19%

Multi-Sector Bond	13%

High-Yield Bond	8%

Bank Loan	4%

Global Bond	4%

Treasury Inflation-
Protected Securities	3%

Currency	2%

As a percentage of net assets on 2-28-11.

Portfolio results

For the six months ended February 28, 2011, John Hancock Lifecycle 2010 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned 14.35%, 14.35%, 14.39%, 14.57%, 14.64%, and 14.71%, respectively, at net asset value. In comparison, the S&P 500 Index returned 27.73% over the same period and the Barclays Capital U.S. Aggregate Bond Index returned –0.83%. A blended index, which rolls down in its equities weighting to match the Portfolio’s glidepath, returned 13.05%.¹The Morningstar, Inc. Target-Date 2000–2010 category average returned 11.59%.²

Performance review

The Portfolio outperformed the Morningstar average (based on Class A shares) and the blended benchmark. Asset allocation drove most of the positive relative performance, with strong results from allocations in sectors such as mid- and small-cap equities, global natural resources, bank loans, and multi-sector and high-yield bonds outweighing underperformance principally in emerging and international developed equities and REITs.

Conversely, there were a few managers who detracted from relative performance. Fundamental Value Fund (Davis), for example, was hindered by weak stock selection in the energy and industrials sectors. U.S. High Yield Fund (Wells Capital) lost ground due to overweighting higher-quality securities. Mutual Shares Fund (Franklin) was hurt by an underweight position in energy and poor stock selection in the tech sector. We remain fully confident in these fine managers, who we believe have enjoyed long-term success with excellent risk-adjusted performance.

The Portfolio had a number of important additions during the period. We continued to increase our allocation to Currency Strategies Fund (First Quadrant), which now stands at 2.0% of Portfolio assets, up from less than 0.5% six months ago. Currency Strategies Fund seeks consistent returns in all market environments, through long/short positions in the currency markets. With the addition of Mutual Shares Fund, the Portfolio gains one of the most well-respected large-cap managers in the industry. We also established a new position in Capital Appreciation Value Fund (T. Rowe Price,) which has a more conservative and flexible mandate that seeks to outperform the broad equity market with less risk over a full market cycle.

¹The blended index is comprised of the S&P 500 Index (S&P) and the Barclays Capital U.S. Aggregate Bond Index (BarCap) and it adjusts over time: from inception to 11-30-07 blend was 58% S&P/42% BarCap from 12-1-07 to 11-30-08, blend was 56% S&P/44% BarCap, from 12-1-08 to 11-30-09, blend was 54% S&P/46% BarCap, from 12-1-09 to 11-30-10, blend was 52% S&P/48% BarCap and from 12-1-10 to 2-28-11, blend is 50% S&P/50% BarCap.

²Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.

Past performance is no guarantee of future results.


18	Lifecycle 2010 Portfolio \| Semiannual report


	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Ending balance	$11,433	$11,471	$11,627	$11,761	$11,771

Index 1	10,586	10,586	10,586	10,586	10,586

Index 2	12,872	12,872	12,872	12,872	12,872

Index 3	11,634	11,634	11,634	11,634	11,634

Index 1 — S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Index 2 — Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment grade debt issues.

Index 3 — Blend of Index 1 & 2 that adjusts over time: from inception to 11-30-07 blend is 58% Index 1 / 42% Index 2, from 12-1-07 to 11-30-08 blend is 56% Index 1 / 44% Index 2, from 12-1-08 to 11-30-09 blend is 54% Index 1 / 46% Index 2, from 12-1-09 to 11-30-10 blend is 52% Index 1 / 48% Index 2 and from 12-1-10 to 2-28-11 blend is 50% Index 1 / 50% Index 2.

Performance chart

Total returns with maximum sales charge for the period ended February 28, 2011.


	Class A	Class R1²	Class R3²	Class R4²	Class R5²	Class 1²

Inception	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06

Average annual total returns — 1 year	9.83%	15.38%	15.55%	15.86%	16.19%	16.13%

Average annual total returns — Since inception³	2.15%	3.13%	3.21%	3.54%	3.81%	3.83%

Cumulative returns — 6 months	8.66%	14.35%	14.39%	14.57%	14.64%	14.71%

Cumulative returns — 1 year	9.83%	15.38%	15.55%	15.86%	16.19%	16.13%

Cumulative returns — Since inception³	9.65%	14.33%	14.71%	16.27%	17.61%	17.71%

The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until 12-31-11. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A —1.28%, Class R1 — 1.43%, Class R3 — 1.38%, Class R4 — 1.08% and Class R5 — 0.78%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.35%, Class R1 — 2.30%, Class R3 — 1.96%, Class R4 — 8.90% and Class R5 — 3.68%. For Class 1, the net expenses equal the gross expenses and are as follows: Class 1 — 0.83%.

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 and chart above do not reflect the deduction of taxes that a shareholder may pay on Portfolio distributions or the redemption of Portfolio shares.

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

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

¹NAV represents net asset value and POP represents public offering price.

²For certain types of investors as described in the Portfolio’s Class R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

³From 10-30-06.


	Semiannual report \| Lifecycle 2010 Portfolio	19

Your expenses

As a shareholder of a John Hancock Funds II Lifecycle Portfolio, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase and redemption fees on certain exchanges and redemptions, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees 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 affiliated underlying funds in which the Portfolio invests. Because the affiliated 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. Had these indirect expenses been reflected in the following analysis, total expenses would have been higher than the amounts shown.

This example is intended to help you understand your ongoing costs (in dollars) of investing in the Portfolio so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 at the beginning of the period and held for the entire period (September 1, 2010 through February 28, 2011).

Actual expenses:

The first line of each share class in the table below and on the following pages provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, 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), then multiply the result by the number in the first line under the heading entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the following pages provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed annualized rate of return of 5% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio 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 table are meant to highlight your ongoing costs only and do not reflect any transactional costs and insurance-related charges. Therefore, the second line of each share class in the table 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.


20	Lifecycle Portfolios \| Semiannual report

Shareholder expense example chart


		Beginning	Ending	Expenses Paid
		Account Value	Account Value	During Period¹	Annualized
		9-1-10	2-28-11	9-1-10–2-28-11	Expense Ratio²
Lifecycle 2045 Portfolio

Class A	Actual	$1,000.00	$1,256.30	$3.30	0.59%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.96	0.59%

Class R1	Actual	1,000.00	1,254.90	4.14	0.74%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.10	3.71	0.74%

Class R3	Actual	1,000.00	1,257.30	3.58	0.64%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.60	3.21	0.64%

Class R4	Actual	1,000.00	1,257.90	2.18	0.39%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.96	0.39%

Class R5	Actual	1,000.00	1,259.10	0.50	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,260.10	0.78	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.70	0.14%
Lifecycle 2040 Portfolio

Class A	Actual	$1,000.00	$1,256.00	$3.30	0.59%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.96	0.59%

Class R1	Actual	1,000.00	1,256.10	4.14	0.74%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.10	3.71	0.74%

Class R3	Actual	1,000.00	1,256.00	3.58	0.64%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.60	3.21	0.64%

Class R4	Actual	1,000.00	1,256.70	2.18	0.39%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.96	0.39%

Class R5	Actual	1,000.00	1,259.10	0.50	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,258.90	0.78	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.70	0.14%
Lifecycle 2035 Portfolio

Class A	Actual	$1,000.00	$1,256.70	$3.30	0.59%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.96	0.59%

Class R1	Actual	1,000.00	1,255.30	4.14	0.74%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.10	3.71	0.74%

Class R3	Actual	1,000.00	1,255.60	3.86	0.69%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.46	0.69%

Class R4	Actual	1,000.00	1,257.70	2.18	0.39%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.96	0.39%

Class R5	Actual	1,000.00	1,259.60	0.50	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,260.60	0.78	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.70	0.14%


	Semiannual report \| Lifecycle Portfolios	21

Shareholder expense example chart, continued


		Beginning	Ending	Expenses Paid
		Account Value	Account Value	During Period¹	Annualized
		9-1-10	2-28-11	9-1-10–2-28-11	Expense Ratio²
Lifecycle 2030 Portfolio

Class A	Actual	$1,000.00	$1,247.10	$3.29	0.59%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.96	0.59%

Class R1	Actual	1,000.00	1,246.30	4.12	0.74%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.10	3.71	0.74%

Class R3	Actual	1,000.00	1,246.60	3.84	0.69%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.46	0.69%

Class R4	Actual	1,000.00	1,248.40	2.17	0.39%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.96	0.39%

Class R5	Actual	1,000.00	1,250.30	0.50	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,250.00	0.78	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.70	0.14%
Lifecycle 2025 Portfolio

Class A	Actual	$1,000.00	$1,225.80	$3.20	0.58%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.91	0.58%

Class R1	Actual	1,000.00	1,225.00	4.03	0.73%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.20	3.66	0.73%

Class R3	Actual	1,000.00	1,226.70	3.75	0.68%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.41	0.68%

Class R4	Actual	1,000.00	1,228.30	2.10	0.38%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.91	0.38%

Class R5	Actual	1,000.00	1,229.20	0.50	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,228.70	0.72	0.13%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.65	0.13%
Lifecycle 2020 Portfolio

Class A	Actual	$1,000.00	$1,199.60	$3.16	0.58%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.91	0.58%

Class R1	Actual	1,000.00	1,198.20	3.98	0.73%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.20	3.66	0.73%

Class R3	Actual	1,000.00	1,198.80	3.71	0.68%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.41	0.68%

Class R4	Actual	1,000.00	1,200.90	2.13	0.39%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.96	0.39%

Class R5	Actual	1,000.00	1,203.70	0.49	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,202.00	0.71	0.13%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.65	0.13%


22	Lifecycle Portfolios \| Semiannual report

Shareholder expense example chart, continued


		Beginning	Ending	Expenses Paid
		Account Value	Account Value	During Period¹	Annualized
		9-1-10	2-28-11	9-1-10–2-28-11	Expense Ratio²
Lifecycle 2015 Portfolio

Class A	Actual	$1,000.00	$1,170.00	$3.17	0.59%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.96	0.59%

Class R1	Actual	1,000.00	1,168.80	3.98	0.74%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.10	3.71	0.74%

Class R3	Actual	1,000.00	1,169.30	3.71	0.69%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.46	0.69%

Class R4	Actual	1,000.00	1,171.20	2.05	0.38%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.91	0.38%

Class R5	Actual	1,000.00	1,172.90	0.48	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,172.40	0.75	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.70	0.14%
Lifecycle 2010 Portfolio

Class A	Actual	$1,000.00	$1,143.50	$3.14	0.59%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.90	2.96	0.59%

Class R1	Actual	1,000.00	1,143.50	3.93	0.74%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.10	3.71	0.74%

Class R3	Actual	1,000.00	1,143.90	3.67	0.69%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.46	0.69%

Class R4	Actual	1,000.00	1,145.70	2.07	0.39%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	1.96	0.39%

Class R5	Actual	1,000.00	1,146.40	0.48	0.09%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.45	0.09%

Class 1	Actual	1,000.00	1,147.10	0.75	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.10	0.70	0.14%

¹Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (181) and divided by 365 (to reflect the one-half year period)

²The Portfolios’ expense ratios do not include fees and expenses indirectly incurred by the underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolios. The range of expense ratios of the underlying funds held by the Portfolios was as follows:


Period	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle
ended	2045	2040	2035	2030	2025	2020	2015	2010

2-28-11	0.48%–1.14%	0.48%–1.14%	0.48%–1.14%	0.48%–1.14%	0.48%–1.14%	0.48%–1.14%	0.48%–1.14%	0.48%–1.11%


	Semiannual report \| Lifecycle Portfolios	23

Portfolios’ investments


Investment companies

Underlying Funds’ Subadvisers
American Century Management, Inc.	(American Century)
Columbia Management Investment
Advisers, LLC	(Columbia)
Davis Selected Advisors, L.P.	(Davis)
Declaration Management &	(Declaration)
Research LLC
Deutsche Asset Management	(Deutsche)
Dimensional Fund Advisors, Inc.	(DFA)
First Quadrant L.P.	(First Quadrant)
Franklin Mutual Advisers
Franklin Templeton Investment Corp.	(Franklin)
Templeton Investment Counsel, LLC
Frontier Capital Management Company	(Frontier)
Grantham, Mayo, Van Otterloo & Co. LLC	(GMO)
Invesco Advisers, Inc.	(Invesco)
Jennison Associates LLC	(Jennison)
John Hancock Asset Management*	(John Hancock)
Lord Abbett	(Lord Abbett)
Marsico Capital Management, LLC	(Marsico)
Pacific Investment Management Company LLC	(PIMCO)
Perimeter Capital Management LLC	(Perimeter)
SSgA Funds Management, Inc.	(SSgA)
Stone Harbor Investment Partners LP	(Stone Harbor)
T. Rowe Price Associates, Inc.	(T. Rowe Price)
Wellington Management Company, LLP	(Wellington)
Wells Capital Management, Incorporated	(Wells Capital)
Western Asset Management Company	(WAMCO)

*Manulife Asset Management (US) LLC and Manulife Asset Management
(North America) Limited are doing business as John Hancock Asset Management.

Lifecycle 2045 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.00%

EQUITY 92.90%

John Hancock Funds II (G) 90.90%

All Cap Value, Class NAV (Lord Abbett)	368,714	$4,516,749

Alpha Opportunities, Class NAV (Wellington)	1,053,456	13,073,392

Blue Chip Growth, Class NAV (T. Rowe Price)	1,006,110	21,862,779

Capital Appreciation, Class NAV (Jennison)	1,855,923	21,862,782

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	847,706	8,790,712

Emerging Markets, Class NAV (DFA)	3,446,677	40,119,326

Equity-Income, Class NAV (T. Rowe Price)	585,232	8,790,189

Fundamental Value, Class NAV (Davis)	834,243	13,072,589

Global Real Estate, Class NAV (Deutsche)	442,484	3,442,525

Heritage, Class NAV (American Century) (I)	468,099	4,507,789

Index 500, Class NAV (John Hancock²) (A)	11,728,515	115,174,019

International Equity Index, Class NAV (SSgA)	1,856,781	34,146,196

International Growth Stock , Class NAV (Invesco)	201,367	2,261,349

International Opportunities, Class NAV (Marsico)	236,327	3,388,924

International Small Cap, Class NAV (Franklin)	299,793	4,958,568

International Small Company, Class NAV (DFA)	553,869	4,979,285

International Value, Class NAV (Franklin)	364,814	5,665,560

Mid Cap Growth Index, Class NAV (SSgA)	558,192	6,765,292

Mid Cap Stock, Class NAV (Wellington) (I)	506,427	9,495,515

Mid Cap Value Equity, Class NAV (Columbia)	348,444	3,609,880

Mid Cap Value Index, Class NAV (SSgA)	615,722	6,779,099

Mid Value, Class NAV (T. Rowe Price)	438,998	6,764,962

Mutual Shares, Class NAV (Franklin) (I)	774,466	8,790,189

Natural Resources, Class NAV (Wellington)	503,742	12,795,042

Real Estate Equity, Class NAV (T. Rowe Price)	331,220	2,775,627

Small Cap Growth, Class NAV (Wellington) (I)	282,806	3,201,360

Small Cap Index, Class NAV (John Hancock²) (A)	516,796	7,276,481

Small Cap Value, Class NAV (Wellington)	239,686	4,057,892

Small Company Growth, Class NAV (Invesco) (I)	223,235	3,219,043

Small Company Value, Class NAV (T. Rowe Price)	202,328	5,462,857

Smaller Company Growth, Class NAV
(Frontier/John Hancock²(A)/Perimeter) (I)	266,564	3,166,778

Value & Restructuring, Class NAV (Columbia)	1,076,882	12,868,739

Value, Class NAV (Invesco)	343,130	3,613,156

John Hancock Funds III (G) 1.25%

International Core, Class NAV (GMO)	182,560	5,655,722

John Hancock Investment Trust (G) 0.75%

Small Cap Intrinsic Value, Class NAV
(John Hancock¹) (A)	240,458	3,380,842

FIXED INCOME 7.10%

John Hancock Funds II (G) 7.10%

Active Bond, Class NAV
(John Hancock¹/Declaration) (A)	163,069	1,673,084

Currency Strategies, Class NAV (First Quadrant) (I)	960,632	9,289,309

Floating Rate Income, Class NAV (WAMCO)	353,547	3,408,194

Global Bond, Class NAV (PIMCO)	186,794	2,291,965

Global High Yield, Class NAV (Stone Harbor)	94,269	994,537

High Yield, Class NAV (WAMCO)	154,692	1,447,921

Multi Sector Bond, Class NAV (Stone Harbor)	156,085	1,629,525

Real Return Bond, Class NAV (PIMCO)	130,434	1,613,470

Spectrum Income, Class NAV (T. Rowe Price)	172,568	1,868,911

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	169,674	1,868,111

Total Bond Market, Class NAV (Declaration) (A)	81,411	836,901

Total Return, Class NAV (PIMCO)	302,253	4,195,273

U.S. High Yield Bond, Class NAV (Wells Capital)	78,365	1,023,448

Total investments
(Cost $362,838,386) 100.00%		$452,431,858

Other assets and liabilities, net 0.00%		8,226

TOTAL NET ASSETS 100.00%		$452,440,084
Percentages are based upon net assets.


24	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Lifecycle 2040 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.00%

EQUITY 92.93%

John Hancock Funds II (G) 90.94%

All Cap Value, Class NAV (Lord Abbett)	364,079	$4,459,967

Alpha Opportunities, Class NAV (Wellington)	1,043,726	12,952,645

Blue Chip Growth, Class NAV (T. Rowe Price)	995,805	21,638,833

Capital Appreciation, Class NAV (Jennison)	1,836,299	21,631,596

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	838,766	8,698,007

Emerging Markets, Class NAV (DFA)	3,410,112	39,693,706

Equity-Income, Class NAV (T. Rowe Price)	579,024	8,696,936

Fundamental Value, Class NAV (Davis)	825,393	12,933,904

Global Real Estate, Class NAV (Deutsche)	437,818	3,406,221

Heritage, Class NAV (American Century) (I)	463,827	4,466,659

Index 500, Class NAV (John Hancock²) (A)	11,604,089	113,952,156

International Equity Index, Class NAV (SSgA)	1,834,416	33,734,914

International Growth Stock , Class NAV (Invesco)	199,243	2,237,501

International Opportunities, Class NAV (Marsico)	233,339	3,346,078

International Small Cap, Class NAV (Franklin)	296,612	4,905,964

International Small Company, Class NAV (DFA)	546,799	4,915,725

International Value, Class NAV (Franklin)	359,663	5,585,573

Mid Cap Growth Index, Class NAV (SSgA)	553,906	6,713,346

Mid Cap Stock, Class NAV (Wellington) (I)	502,213	9,416,498

Mid Cap Value Equity, Class NAV (Columbia)	344,399	3,567,974

Mid Cap Value Index, Class NAV (SSgA)	607,967	6,693,715

Mid Value, Class NAV (T. Rowe Price)	435,070	6,704,422

Mutual Shares, Class NAV (Franklin) (I)	766,250	8,696,936

Natural Resources, Class NAV (Wellington)	498,429	12,660,107

Real Estate Equity, Class NAV (T. Rowe Price)	328,453	2,752,436

Small Cap Growth, Class NAV (Wellington) (I)	280,656	3,177,031

Small Cap Index, Class NAV (John Hancock²) (A)	511,941	7,208,135

Small Cap Value, Class NAV (Wellington)	237,092	4,013,970

Small Company Growth, Class NAV (Invesco) (I)	221,879	3,199,490

Small Company Value, Class NAV (T. Rowe Price)	200,638	5,417,215

Smaller Company Growth, Class NAV
(Frontier/John Hancock²(A)/Perimeter) (I)	264,346	3,140,426

Value & Restructuring, Class NAV (Columbia)	1,063,674	12,710,906

Value, Class NAV (Invesco)	340,050	3,580,732

John Hancock Funds III (G) 1.25%

International Core, Class NAV (GMO)	180,369	5,587,846

John Hancock Investment Trust (G) 0.74%

Small Cap Intrinsic Value, Class NAV
(John Hancock¹) (A)	237,907	3,344,975

FIXED INCOME 7.07%

John Hancock Funds II (G) 7.07%

Active Bond, Class NAV
(John Hancock¹/Declaration) (A)	161,928	1,661,378

Currency Strategies, Class NAV (First Quadrant) (I)	952,377	9,209,482

Floating Rate Income, Class NAV (WAMCO)	349,819	3,372,252

Global Bond, Class NAV (PIMCO)	185,506	2,276,163

Global High Yield, Class NAV (Stone Harbor)	94,130	993,074

High Yield, Class NAV (WAMCO)	154,701	1,448,000

Multi Sector Bond, Class NAV (Stone Harbor)	154,744	1,615,522

Real Return Bond, Class NAV (PIMCO)	128,592	1,590,679

Spectrum Income, Class NAV (T. Rowe Price)	171,057	1,852,548

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	168,216	1,852,058

Total Bond Market, Class NAV (Declaration) (A)	71,501	735,034

Total Return, Class NAV (PIMCO)	287,326	3,988,082

U.S. High Yield Bond, Class NAV (Wells Capital)	78,173	1,020,945

Total investments
(Cost $361,191,245) 100.00%		$447,457,762

Other assets and liabilities, net (0.00%)		(4,685)

TOTAL NET ASSETS 100.00%		$447,453,077

Percentages are based upon net assets.

Lifecycle 2035 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.00%

EQUITY 92.93%

John Hancock Funds II (G) 90.93%

All Cap Value, Class NAV (Lord Abbett)	484,342	$5,933,188

Alpha Opportunities, Class NAV (Wellington)	1,385,591	17,195,187

Blue Chip Growth, Class NAV (T. Rowe Price)	1,323,099	28,750,935

Capital Appreciation, Class NAV (Jennison)	2,439,960	28,742,727

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	1,114,859	11,561,092

Emerging Markets, Class NAV (DFA)	4,531,304	52,744,379

Equity-Income, Class NAV (T. Rowe Price)	769,677	11,560,545

Fundamental Value, Class NAV (Davis)	1,097,567	17,198,873

Global Real Estate, Class NAV (Deutsche)	581,932	4,527,432

Heritage, Class NAV (American Century) (I)	615,751	5,929,679

Index 500, Class NAV (John Hancock²) (A)	15,419,333	151,417,853

International Equity Index, Class NAV (SSgA)	2,442,051	44,909,323

International Growth Stock , Class NAV (Invesco)	265,209	2,978,299

International Opportunities, Class NAV (Marsico)	310,602	4,454,033

International Small Cap, Class NAV (Franklin)	394,134	6,518,968

International Small Company, Class NAV (DFA)	727,856	6,543,422

International Value, Class NAV (Franklin)	480,254	7,458,347

Mid Cap Growth Index, Class NAV (SSgA)	734,844	8,906,314

Mid Cap Stock, Class NAV (Wellington) (I)	666,709	12,500,801

Mid Cap Value Equity, Class NAV (Columbia)	457,715	4,741,927

Mid Cap Value Index, Class NAV (SSgA)	808,810	8,905,003

Mid Value, Class NAV (T. Rowe Price)	578,908	8,920,973

Mutual Shares, Class NAV (Franklin) (I)	1,018,181	11,556,353

Natural Resources, Class NAV (Wellington)	662,495	16,827,380

Real Estate Equity, Class NAV (T. Rowe Price)	436,602	3,658,726

Small Cap Growth, Class NAV (Wellington) (I)	369,115	4,178,377

Small Cap Index, Class NAV (John Hancock²) (A)	678,902	9,558,945

Small Cap Value, Class NAV (Wellington)	315,044	5,333,701

Small Company Growth, Class NAV (Invesco) (I)	292,053	4,211,399

Small Company Value, Class NAV (T. Rowe Price)	266,454	7,194,254

Smaller Company Growth, Class NAV
(Frontier/John Hancock²(A)/Perimeter) (I)	350,930	4,169,048

Value & Restructuring, Class NAV (Columbia)	1,414,589	16,904,335

Value, Class NAV (Invesco)	453,413	4,774,435

John Hancock Funds III (G) 1.25%

International Core, Class NAV (GMO)	240,094	7,438,097

John Hancock Investment Trust (G) 0.75%

Small Cap Intrinsic Value, Class NAV
(John Hancock¹) (A)	316,127	4,444,751

FIXED INCOME 7.07%

John Hancock Funds II (G) 7.07

Active Bond, Class NAV
(John Hancock¹/Declaration) (A)	215,913	2,215,271

Currency Strategies, Class NAV (First Quadrant) (I)	1,268,013	12,261,682

Floating Rate Income, Class NAV (WAMCO)	464,967	4,482,281

Global Bond, Class NAV (PIMCO)	245,662	3,014,274

Global High Yield, Class NAV (Stone Harbor)	124,960	1,318,325

High Yield, Class NAV (WAMCO)	203,984	1,909,291

Multi Sector Bond, Class NAV (Stone Harbor)	206,028	2,150,937

Real Return Bond, Class NAV (PIMCO)	171,540	2,121,953

Spectrum Income, Class NAV (T. Rowe Price)	227,749	2,466,518

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	223,966	2,465,866

Total Bond Market, Class NAV (Declaration) (A)	98,516	1,012,749

Total Return, Class NAV (PIMCO)	380,965	5,287,792

U.S. High Yield Bond, Class NAV (Wells Capital)	102,978	1,344,893

Total investments
(Cost $481,906,323) 100.00%		$594,700,933

Other assets and liabilities, net (0.00%)		(8,358)

TOTAL NET ASSETS 100.00%		$594,692,575

Percentages are based upon net assets.


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	25

Lifecycle 2030 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.00%

EQUITY 88.90%

John Hancock Funds II (G) 87.02%

All Cap Value, Class NAV (Lord Abbett)	611,889	$7,495,644

Alpha Opportunities, Class NAV (Wellington)	1,716,512	21,301,910

Blue Chip Growth, Class NAV (T. Rowe Price)	1,640,193	35,641,397

Capital Appreciation, Class NAV (Jennison)	3,013,853	35,503,183

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	1,409,217	14,613,583

Emerging Markets, Class NAV (DFA)	5,467,150	63,637,623

Equity-Income, Class NAV (T. Rowe Price)	972,942	14,613,584

Fundamental Value, Class NAV (Davis)	1,363,132	21,360,275

Global Real Estate, Class NAV (Deutsche)	881,934	6,861,448

Heritage, Class NAV (American Century) (I)	776,566	7,478,330

Index 500, Class NAV (John Hancock²) (A)	19,050,088	187,071,861

International Equity Index, Class NAV (SSgA)	3,004,601	55,254,607

International Growth Stock , Class NAV (Invesco)	331,454	3,722,234

International Opportunities, Class NAV (Marsico)	338,516	4,854,314

International Small Cap, Class NAV (Franklin)	475,228	7,860,268

International Small Company, Class NAV (DFA)	878,904	7,901,351

International Value, Class NAV (Franklin)	559,834	8,694,230

Mid Cap Growth Index, Class NAV (SSgA)	864,124	10,473,185

Mid Cap Stock, Class NAV (Wellington) (I)	801,574	15,029,511

Mid Cap Value Equity, Class NAV (Columbia)	539,562	5,589,863

Mid Cap Value Index, Class NAV (SSgA)	947,037	10,426,875

Mid Value, Class NAV (T. Rowe Price)	733,357	11,301,033

Mutual Shares, Class NAV (Franklin) (I)	1,284,627	14,580,521

Natural Resources, Class NAV (Wellington)	784,303	19,921,289

Real Estate Equity, Class NAV (T. Rowe Price)	640,963	5,371,269

Small Cap Growth, Class NAV (Wellington) (I)	400,409	4,532,627

Small Cap Index, Class NAV (John Hancock²) (A)	832,564	11,722,507

Small Cap Value, Class NAV (Wellington)	352,484	5,967,556

Small Company Growth, Class NAV (Invesco) (I)	315,318	4,546,890

Small Company Value, Class NAV (T. Rowe Price)	280,885	7,583,886

Smaller Company Growth, Class NAV
(Frontier/John Hancock²(A)/Perimeter) (I)	378,566	4,497,370

Value & Restructuring, Class NAV (Columbia)	1,660,156	19,838,864

Value, Class NAV (Invesco)	533,825	5,621,176

John Hancock Funds III (G) 0.74%

International Core, Class NAV (GMO)	279,660	8,663,880

John Hancock Investment Trust (G)

Small Cap Intrinsic Value, Class NAV
(John Hancock¹) (A)	397,572	5,589,863

FIXED INCOME 11.10%

John Hancock Funds II (G) 11.10%

Active Bond, Class NAV
(John Hancock¹/Declaration)(A)	483,735	4,963,118

Currency Strategies, Class NAV (First Quadrant) (I)	1,632,497	15,786,245

Floating Rate Income, Class NAV (WAMCO)	1,057,855	10,197,723

Global Bond, Class NAV (PIMCO)	418,633	5,136,631

Global High Yield, Class NAV (Stone Harbor)	297,804	3,141,833

High Yield, Class NAV (WAMCO)	523,015	4,895,417

Multi Sector Bond, Class NAV (Stone Harbor)	506,411	5,286,932

Real Return Bond, Class NAV (PIMCO)	415,249	5,136,631

Spectrum Income, Class NAV (T. Rowe Price)	535,388	5,798,247

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	524,400	5,773,649

Total Bond Market, Class NAV (Declaration) (A)	223,269	2,295,204

Total Return, Class NAV (PIMCO)	915,092	12,701,480

U.S. High Yield Bond, Class NAV (Wells Capital)	244,560	3,193,953

Total investments
(Cost $617,859,766) 100.00%		$759,431,070

Other assets and liabilities, net (0.00%)		(8,159)

TOTAL NET ASSETS 100.00%		$759,422,911

Percentages are based upon net assets.

Lifecycle 2025 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.00%
EQUITY 80.94%


John Hancock Funds II (G) 79.34%

All Cap Value, Class NAV (Lord Abbett)	703,577	$8,618,816

Alpha Opportunities, Class NAV (Wellington)	1,859,753	23,079,537

Blue Chip Growth, Class NAV (T. Rowe Price)	1,780,694	38,694,476

Capital Appreciation, Class NAV (Jennison)	3,262,333	38,430,285

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	1,521,193	15,774,770

Emerging Markets, Class NAV (DFA)	5,545,484	64,549,430

Equity-Income, Class NAV (T. Rowe Price)	1,050,836	15,783,563

Fundamental Value, Class NAV (Davis)	1,461,555	22,902,560

Global Real Estate, Class NAV (Deutsche)	1,382,511	10,755,933

Heritage, Class NAV (American Century) (I)	751,263	7,234,664

Index 500, Class NAV (John Hancock²) (A)	20,717,543	203,446,275

International Equity Index, Class NAV (SSgA)	3,114,651	57,278,436

International Growth Stock , Class NAV (Invesco)	380,347	4,271,295

International Opportunities, Class NAV (Marsico)	297,965	4,272,819

International Small Cap, Class NAV (Franklin)	446,538	7,385,731

International Small Company, Class NAV (DFA)	825,844	7,424,334

International Value, Class NAV (Franklin)	551,194	8,560,039

Mid Cap Growth Index, Class NAV (SSgA)	894,727	10,844,096

Mid Cap Stock, Class NAV (Wellington) (I)	806,237	15,116,940

Mid Cap Value Equity, Class NAV (Columbia)	537,624	5,569,787

Mid Cap Value Index, Class NAV (SSgA)	977,295	10,760,015

Mid Value, Class NAV (T. Rowe Price)	728,955	11,233,190

Mutual Shares, Class NAV (Franklin) (I)	1,385,408	15,724,376

Natural Resources, Class NAV (Wellington)	763,620	19,395,944

Real Estate Equity, Class NAV (T. Rowe Price)	925,821	7,758,378

Small Cap Growth, Class NAV (Wellington) (I)	333,691	3,777,378

Small Cap Index, Class NAV (John Hancock²) (A)	726,346	10,226,952

Small Cap Value, Class NAV (Wellington)	273,699	4,633,729

Small Company Growth, Class NAV (Invesco) (I)	262,901	3,791,025

Small Company Value, Class NAV (T. Rowe Price)	251,429	6,788,580

Smaller Company Growth, Class NAV
(Frontier/John Hancock²(A)/Perimeter) (I)	319,110	3,791,025

Value & Restructuring, Class NAV (Columbia)	1,741,069	20,805,779

Value, Class NAV (Invesco)	535,703	5,640,948

John Hancock Funds III (G) 0.98%

International Core, Class NAV (GMO)	276,390	8,562,572

John Hancock Investment Trust (G) 0.62%

Small Cap Intrinsic Value, Class NAV
(John Hancock¹) (A)	387,283	5,445,206

FIXED INCOME 19.06%

John Hancock Funds II (G) 19.06%

Active Bond, Class NAV
(John Hancock¹/Declaration) (A)	966,058	9,911,758

Currency Strategies, Class NAV (First Quadrant) (I)	1,856,909	17,956,314

Floating Rate Income, Class NAV (WAMCO)	2,305,785	22,227,764

Global Bond, Class NAV (PIMCO)	925,867	11,360,384

Global High Yield, Class NAV (Stone Harbor)	656,132	6,922,193

High Yield, Class NAV (WAMCO)	1,124,200	10,522,513

Multi Sector Bond, Class NAV (Stone Harbor)	1,120,649	11,699,578

Real Return Bond, Class NAV (PIMCO)	916,863	11,341,597

Spectrum Income, Class NAV (T. Rowe Price)	1,133,971	12,280,906

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	1,115,137	12,277,656

Total Bond Market, Class NAV (Declaration) (A)	390,165	4,010,898

Total Return, Class NAV (PIMCO)	2,103,429	29,195,595

U.S. High Yield Bond, Class NAV (Wells Capital)	540,293	7,056,221

Total investments
(Cost $720,877,990) 100.00%		$875,092,260

Other assets and liabilities, net (0.00%)		(26,661)

TOTAL NET ASSETS 100.00%		$875,065,599

Percentages are based upon net assets.


26	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Lifecycle 2020 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.02%

EQUITY 69.98%

John Hancock Funds II (G) 68.72%

All Cap Value, Class NAV (Lord Abbett)	679,788	$8,327,409

Alpha Opportunities, Class NAV (Wellington)	1,592,713	19,765,574

Blue Chip Growth, Class NAV (T. Rowe Price)	1,537,407	33,407,845

Capital Appreciation, Class NAV (Jennison)	2,830,552	33,343,905

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	1,304,408	13,526,708

Emerging Markets Class NAV (DFA)	4,445,371	51,744,113

Equity-Income, Class NAV (T. Rowe Price)	903,802	13,575,110

Fundamental Value, Class NAV (Davis)	1,255,126	19,667,828

Global Real Estate, Class NAV (Deutsche)	1,605,228	12,488,678

Heritage, Class NAV (American Century) (I)	604,816	5,824,378

Index 500, Class NAV (John Hancock²) (A)	18,253,203	179,246,451

International Equity Index, Class NAV (SSgA)	2,547,245	46,843,829

International Opportunities, Class NAV (Marsico)	459,618	6,590,926

International Small Cap, Class NAV (Franklin)	296,001	4,895,854

International Small Company, Class NAV (DFA)	544,589	4,895,854

International Value, Class NAV (Franklin)	424,979	6,599,930

Mid Cap Growth Index, Class NAV (SSgA)	683,715	8,286,621

Mid Cap Stock, Class NAV (Wellington) (I)	594,333	11,143,742

Mid Cap Value Equity, Class NAV (Columbia)	399,677	4,140,652

Mid Cap Value Index, Class NAV (SSgA)	756,079	8,324,425

Mid Value, Class NAV (T. Rowe Price)	568,128	8,754,859

Mutual Shares, Class NAV (Franklin) (I)	1,190,492	13,512,087

Natural Resources, Class NAV (Wellington)	606,629	15,408,380

Real Estate Equity, Class NAV (T. Rowe Price)	1,000,252	8,382,109

Small Cap Growth, Class NAV (Wellington) (I)	499,607	5,655,556

Small Cap Index, Class NAV (John Hancock²) (A)	776,363	10,931,191

Small Company Value, Class NAV (T. Rowe Price)	210,451	5,682,179

Value & Restructuring, Class NAV (Columbia)	1,476,314	17,641,957

Value, Class NAV (Invesco)	394,977	4,159,110

John Hancock Funds III (G) 0.78%

International Core, Class NAV (GMO)	212,823	6,593,255

John Hancock Investment Trust (G) 0.48%

Small Cap Intrinsic Value, Class NAV
(John Hancock¹) (A)	288,175	4,051,741

FIXED INCOME 30.04%

John Hancock Funds II (G) 30.04%

Active Bond, Class NAV
(John Hancock¹/Declaration) (A)	2,431,403	24,946,192

Currency Strategies, Class NAV (First Quadrant) (I)	1,782,759	17,239,283

Floating Rate Income, Class NAV (WAMCO)	2,968,405	28,615,423

Global Bond, Class NAV (PIMCO)	1,554,764	19,076,949

Global High Yield, Class NAV (Stone Harbor)	1,105,748	11,665,645

High Yield, Class NAV (WAMCO)	1,899,989	17,783,893

Multi Sector Bond, Class NAV (Stone Harbor)	1,845,582	19,267,871

Real Return Bond, Class NAV (PIMCO)	1,433,013	17,726,368

Spectrum Income, Class NAV (T. Rowe Price)	1,785,130	19,332,962

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	1,755,481	19,327,844

Total Bond Market, Class NAV (Declaration) (A)	450,018	4,626,184

Total Return, Class NAV (PIMCO)	3,118,922	43,290,633

U.S. High Yield Bond, Class NAV (Wells Capital)	908,126	11,860,125

Total investments
(Cost $704,077,853) 100.02%		$848,171,628

Other assets and liabilities, net (0.02%)		(185,613)


TOTAL NET ASSETS 100.00%		$847,986,015

Percentages are based upon net assets.

Lifecycle 2015 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value

Affiliated Investment Companies — 100.01%

EQUITY 57.99%

John Hancock Funds II (G) 57.41%

All Cap Value, Class NAV (Lord Abbett)	455,923	$5,585,054

Alpha Opportunities, Class NAV (Wellington)	962,935	11,950,025

Blue Chip Growth, Class NAV (T. Rowe Price)	895,559	19,460,490

Capital Appreciation, Class NAV (Jennison)	1,645,619	19,385,391

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	769,774	7,982,560

Emerging Markets, Class NAV (DFA)	2,264,962	26,364,161

Equity-Income, Class NAV (T. Rowe Price)	533,491	8,013,039

Fundamental Value, Class NAV (Davis)	756,403	11,852,833

Global Real Estate, Class NAV (Deutsche)	1,078,957	8,394,288

Heritage, Class NAV (American Century) (I)	285,299	2,747,430

Index 500, Class NAV (John Hancock²) (A)	10,630,337	104,389,912

International Equity Index, Class NAV (SSgA)	1,386,700	25,501,418

International Opportunities, Class NAV (Marsico)	231,937	3,325,976

International Small Cap, Class NAV (Franklin)	99,813	1,650,902

International Small Company, Class NAV (DFA)	184,525	1,658,881

International Value, Class NAV (Franklin)	214,295	3,328,003

Mid Cap Growth Index, Class NAV (SSgA)	341,088	4,133,984

Mid Cap Stock, Class NAV (Wellington) (I)	281,273	5,273,874

Mid Cap Value Equity, Class NAV (Columbia)	188,205	1,949,804

Mid Cap Value Index, Class NAV (SSgA)	375,381	4,132,950

Mid Value, Class NAV (T. Rowe Price)	272,183	4,194,343

Mutual Shares, Class NAV (Franklin) (I)	702,743	7,976,131

Natural Resources, Class NAV (Wellington)	341,880	8,683,746

Real Estate Equity, Class NAV (T. Rowe Price)	670,106	5,615,489

Small Cap Growth, Class NAV (Wellington) (I)	293,664	3,324,280

Small Cap Index, Class NAV (John Hancock²) (A)	551,688	7,767,770

Small Company Value, Class NAV (T. Rowe Price)	123,706	3,340,050

Value & Restructuring, Class NAV (Columbia)	766,373	9,158,159

Value, Class NAV (Invesco)	185,838	1,956,873

John Hancock Funds III (G) 0.58%

International Core, Class NAV (GMO)	107,336	3,325,263

FIXED INCOME 42.02%

John Hancock Funds II (G) 42.02

Active Bond, Class NAV
(John Hancock¹/Declaration)(A)	3,005,611	30,837,565

Currency Strategies, Class NAV (First Quadrant) (I)	1,205,469	11,656,882

Floating Rate Income, Class NAV (WAMCO)	2,131,851	20,551,046

Global Bond, Class NAV (PIMCO)	1,602,310	19,660,348

Global High Yield, Class NAV (Stone Harbor)	1,084,334	11,439,722

High Yield, Class NAV (WAMCO)	1,893,150	17,719,883

Multi Sector Bond, Class NAV (Stone Harbor)	1,771,109	18,490,377

Real Return Bond, Class NAV (PIMCO)	1,369,268	16,937,850

Spectrum Income, Class NAV (T. Rowe Price)	1,712,877	18,550,453

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	1,683,174	18,531,745

Total Bond Market, Class NAV (Declaration) (A)	627,879	6,454,591

Total Return, Class NAV (PIMCO)	2,764,222	38,367,407

U.S. High Yield Bond, Class NAV (Wells Capital)	893,422	11,668,096

Total investments
(Cost $483,583,959) 100.01%		$573,289,044

Other assets and liabilities, net (0.01%)		(34,315)

TOTAL NET ASSETS 100.00%		$573,254,729

Percentages are based upon net assets.


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	27

Lifecycle 2010 Portfolio

As of 2-28-11 (Unaudited)


	Shares	Value
Affiliated Investment Companies — 100.01%

EQUITY 47.56%

John Hancock Funds II (G) 47.13%

All Cap Value, Class NAV (Lord Abbett)	386,130	$4,730,094

Alpha Opportunities, Class NAV (Wellington)	685,713	8,509,702

Blue Chip Growth, Class NAV (T. Rowe Price)	637,848	13,860,436

Capital Appreciation, Class NAV (Jennison)	1,176,549	13,859,743

Capital Appreciation Value, Class NAV
(T.Rowe Price) (I)	544,994	5,651,592

Emerging Markets, Class NAV (DFA)	1,433,775	16,689,137

Equity-Income, Class NAV (T. Rowe Price)	377,916	5,676,297

Fundamental Value, Class NAV (Davis)	544,982	8,539,869

Global Real Estate, Class NAV (Deutsche)	915,729	7,124,375

Index 500, Class NAV (John Hancock²) (A)	7,766,509	76,267,118

International Equity Index, Class NAV (SSgA)	1,008,028	18,537,635

International Opportunities, Class NAV (Marsico)	148,264	2,126,102

International Small Company, Class NAV (DFA)	159,596	1,434,770

International Value, Class NAV (Franklin)	136,726	2,123,351

Mid Cap Growth Index, Class NAV (SSgA)	505,677	6,128,810

Mid Cap Stock, Class NAV (Wellington) (I)	125,318	2,349,704

Mid Cap Value Index, Class NAV (SSgA)	559,154	6,156,280

Mid Value, Class NAV (T. Rowe Price)	153,520	2,365,745

Mutual Shares, Class NAV (Franklin) (I)	498,983	5,663,455

Natural Resources, Class NAV (Wellington)	214,261	5,442,231

Real Estate Equity, Class NAV (T. Rowe Price)	566,776	4,749,583

Small Cap Growth, Class NAV (Wellington) (I)	207,536	2,349,312

Small Cap Index, Class NAV (John Hancock²) (A)	383,869	5,404,869

Small Company Value, Class NAV (T. Rowe Price)	87,424	2,360,457

Value & Restructuring, Class NAV (Columbia)	516,328	6,170,117

John Hancock Funds III (G) 0.43%

International Core, Class NAV (GMO)	68,671	2,127,418

FIXED INCOME 52.45%

John Hancock Funds II (G) 52.45%

Active Bond, Class NAV
(John Hancock¹/Declaration)(A)	3,746,362	38,437,669

Currency Strategies, Class NAV (First Quadrant) (I)	1,113,216	10,764,803

Floating Rate Income, Class NAV (WAMCO)	2,132,019	20,552,664

Global Bond, Class NAV (PIMCO)	1,537,169	18,861,065

Global High Yield, Class NAV (Stone Harbor)	1,036,414	10,934,167

High Yield, Class NAV (WAMCO)	1,735,250	16,241,937

Multi Sector Bond, Class NAV (Stone Harbor)	1,970,677	20,573,870

Real Return Bond, Class NAV (PIMCO)	1,380,972	17,082,626

Spectrum Income, Class NAV (T. Rowe Price)	1,917,206	20,763,341

Strategic Income Opportunities, Class NAV
(John Hancock¹) (A)	1,911,038	21,040,533

Total Bond Market, Class NAV (Declaration) (A)	960,647	9,875,446

Total Return, Class NAV (PIMCO)	3,215,705	44,633,980

U.S. High Yield Bond, Class NAV (Wells Capital)	836,055	10,918,883

Total investments
(Cost $434,738,096) 100.01%		$497,079,186

Other assets and liabilities, net (0.01%)		(38,795)

TOTAL NET ASSETS 100.00%		$497,040,391

Percentages are based upon net assets.


	Footnote Legend:
(A)	The subadviser is an affiliate of the adviser.

(G)	The underlying fund’s subadviser is shown parenthetically.

(I)	Non-income producing.

¹	Manulife Asset Management (US) LLC is doing business as John Hancock
	Asset Management.

²	Manulife Asset Management (North America) Limited is doing business as
	John Hancock Asset Management.


28	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Financial statements

Statements of assets and liabilities 2-28-11 (Unaudited)

These Statements of Assets and Liabilities are the Portfolios’ balance sheets. They show the value of what each Portfolio owns, is due and owes. You’ll also find the net asset value and the maximum public offering price per share for each Portfolio. Net asset value is calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.


	Lifecycle	Lifecycle	Lifecycle
	2045 Portfolio	2040 Portfolio	2035 Portfolio
Assets

Investments in affiliated funds, at value (Note 7)	$452,431,858	$447,457,762	$594,700,933
Receivable for investments sold	750,000	750,000	1,000,000
Receivable for fund shares sold	313,599	430,216	145,030
Dividends and interest receivable	29,080	28,868	38,380
Receivable due from adviser	775	835	899
Other assets	44,865	45,224	44,921
Total assets	453,570,177	448,712,905	595,930,163

Liabilities

Payable for investments purchased	1,077,306	1,203,225	1,176,765
Payable for fund shares repurchased	2,998	7,256	3,035
Payable to affiliates (Note 4)
Accounting and legal services fees	9,830	9,746	12,962
Transfer agent fees	2,806	3,176	4,237
Trustees’ fees	329	341	447
Distribution and service fees	1,378	1,787	2,798
Other liabilities and accrued expenses	35,446	34,297	37,344
Total liabilities	1,130,093	1,259,828	1,237,588

Net assets

Capital paid-in	$379,312,613	$378,080,320	$506,870,079
Accumulated distributions in excess of net investment income	(36,041)	(35,529)	(44,324)
Accumulated net realized loss on investments	(16,429,960)	(16,858,231)	(24,927,790)
Net unrealized appreciation (depreciation) on investments	89,593,472	86,266,517	112,794,610
Net assets	$452,440,084	$447,453,077	$594,692,575
Investments in affiliated funds, at cost	$362,838,386	$361,191,245	$481,906,323

Net asset value per share

The Portfolios have an unlimited number of shares authorized with no par value.
Net asset value is calculated by dividing the net assets of each class of shares by the
number of outstanding shares in the class.
Class A: Net assets	$9,008,086	$10,024,160	$13,480,996
Shares outstanding	896,949	997,491	1,337,105
Net asset value and redemption price per share	$10.04	$10.05	$10.08
Class R1: Net assets	$1,011,239	$1,183,118	$1,991,995
Shares outstanding	100,779	117,847	197,723
Net asset value, offering price and redemption price per share	$10.03	$10.04	$10.07
Class R3: Net assets	$731,353	$2,166,030	$1,719,294
Shares outstanding	72,867	215,966	170,553
Net asset value, offering price and redemption price per share	$10.04	$10.03	$10.08
Class R4: Net assets	$370,791	$200,742	$984,061
Shares outstanding	36,865	19,965	97,282
Net asset value, offering price and redemption price per share	$10.06	$10.05	$10.12
Class R5: Net assets	$629,813	$885,104	$1,128,234
Shares outstanding	62,453	87,767	111,512
Net asset value, offering price and redemption price per share	$10.08	$10.08	$10.12
Class 1: Net assets	$440,688,802	$432,993,923	$575,387,995
Shares outstanding	43,734,862	42,981,163	56,873,622
Net asset value, offering price and redemption price per share	$10.08	$10.07	$10.12

Maximum public offering price per share

Class A (net asset value per share ÷ 95%)¹	$10.57	$10.58	$10.61

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.


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	29

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

Statements of assets and liabilities 2-28-11 (Unaudited)

Continued


	Lifecycle	Lifecycle	Lifecycle
	2030 Portfolio	2025 Portfolio	2020 Portfolio
Assets

Investments in affiliated funds, at value (Note 7)	$759,431,070	$875,092,260	$848,171,628
Receivable for investments sold	2,360,000	4,625,763	4,670,000
Receivable for fund shares sold	311,048	24,901	857,645
Dividends and interest receivable	90,273	195,827	293,430
Receivable due from adviser	1,059	1,041	1,194
Other assets	45,477	46,733	48,664
Total assets	762,238,927	879,986,525	854,042,561

Liabilities

Payable for investments purchased	2,715,052	4,299,472	5,832,342
Payable for fund shares repurchased	33,281	548,404	150,720
Payable to affiliates (Note 4)
Accounting and legal services fees	16,627	19,207	18,709
Transfer agent fees	6,775	6,750	8,456
Trustees’ fees	588	682	692
Distribution and service fees	3,102	4,302	3,707
Other liabilities and accrued expenses	40,591	42,109	41,920
Total liabilities	2,816,016	4,920,926	6,056,546

Net assets

Capital paid-in	$653,924,579	$768,602,281	$752,768,921
Undistributed net investment income	39,820	271,240	509,915
Accumulated net realized loss on investments	(36,112,792)	(48,022,192)	(49,386,596)
Net unrealized appreciation (depreciation) on investments	141,571,304	154,214,270	144,093,775
Net assets	$759,422,911	$875,065,599	$847,986,015
Investments in affiliated funds, at cost	$617,859,766	$720,877,990	$704,077,853

Net asset value per share

The Portfolios have an unlimited number of shares authorized with no par value.
Net asset value is calculated by dividing the net assets of each class of shares by the
number of outstanding shares in the class.
Class A: Net assets	$21,521,529	$21,141,515	$25,822,236
Shares outstanding	2,156,069	2,121,601	2,586,594
Net asset value and redemption price per share	$9.98	$9.96	$9.98
Class R1: Net assets	$2,282,329	$2,123,372	$2,257,179
Shares outstanding	229,306	213,732	226,475
Net asset value, offering price and redemption price per share	$9.95	$9.93	$9.97
Class R3: Net assets	$2,360,852	$2,688,155	$3,818,025
Shares outstanding	237,093	270,475	382,918
Net asset value, offering price and redemption price per share	$9.96	$9.94	$9.97
Class R4: Net assets	$211,947	$1,029,170	$176,068
Shares outstanding	21,289	103,486	17,674
Net asset value, offering price and redemption price per share	$9.96	$9.95	$9.96
Class R5: Net assets	$2,141,819	$3,574,401	$3,258,944
Shares outstanding	215,081	359,784	326,613
Net asset value, offering price and redemption price per share	$9.96	$9.93	$9.98
Class 1: Net assets	$730,904,435	$844,508,986	$812,653,563
Shares outstanding	73,430,876	85,007,781	81,512,169
Net asset value, offering price and redemption price per share	$9.95	$9.93	$9.97

Maximum public offering price per share

Class A (net asset value per share ÷ 95%)¹	$10.51	$10.48	$10.51

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.


30	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

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

Statements of assets and liabilities 2-28-11 (Unaudited)


Continued
	Lifecycle	Lifecycle
	2015 Portfolio	2010 Portfolio
Assets

Investments in affiliated funds, at value (Note 7)	$573,289,044	$497,079,186
Receivable for investments sold	6,714,267	10,189,438
Receivable for fund shares sold	14,058	116,106
Dividends and interest receivable	260,180	278,555
Receivable due from adviser	945	855
Other assets	46,099	47,122
Total assets	580,324,593	507,711,262

Liabilities

Payable for investments purchased	6,861,653	10,321,735
Payable for fund shares repurchased	148,700	290,255
Payable to affiliates (Note 4)
Accounting and legal services fees	12,670	11,564
Transfer agent fees	5,919	4,344
Trustees’ fees	475	533
Distribution and service fees	3,413	1,905
Other liabilities and accrued expenses	37,034	40,535
Total liabilities	7,069,864	10,670,871

Net assets

Capital paid-in	$524,910,256	$452,839,331
Undistributed net investment income	493,707	569,366
Accumulated net realized loss on investments	(41,854,319)	(18,709,396)
Net unrealized appreciation (depreciation) on investments	89,705,085	62,341,090
Net assets	$573,254,729	$497,040,391
Investments in affiliated funds, at cost	$483,583,959	$434,738,096

Net asset value per share

The Portfolios have an unlimited number of shares authorized with no par value.
Net asset value is calculated by dividing the net assets of each class of shares by the
number of outstanding shares in the class.
Class A: Net assets	$18,754,390	$14,057,908
Shares outstanding	1,904,749	1,413,935
Net asset value and redemption price per share	$9.85	$9.94
Class R1: Net assets	$1,599,332	$466,483
Shares outstanding	162,624	47,018
Net asset value, offering price and redemption price per share	$9.83	$9.92
Class R3: Net assets	$2,429,118	$1,738,463
Shares outstanding	247,051	175,066
Net asset value, offering price and redemption price per share	$9.83	$9.93
Class R4: Net assets	$82,206	$82,674
Shares outstanding	8,362	8,319
Net asset value, offering price and redemption price per share	$9.83	$9.94
Class R5: Net assets	$1,589,725	$2,953,085
Shares outstanding	161,520	297,260
Net asset value, offering price and redemption price per share	$9.84	$9.93
Class 1: Net assets	$548,799,958	$477,741,778
Shares outstanding	55,784,937	48,061,210
Net asset value, offering price and redemption price per share	$9.84	$9.94

Maximum public offering price per share

Class A (net asset value per share ÷ 95%)¹	$10.37	$10.46

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.


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	31

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

Statements of operations For the six months ended 2-28-11 (Unaudited)

These Statements of Operations summarize the Portfolios’ investment income earned and expenses directly incurred in operating each Portfolio. They also show net gains (losses) for the period stated.


	Lifecycle	Lifecycle	Lifecycle
	2045 Portfolio	2040 Portfolio	2035 Portfolio
Investment income

Income distributions received from affiliated underlying funds	$4,673,344	$4,641,555	$6,181,844

Expenses

Investment management fees (Note 4)	124,818	124,601	165,522
Distribution and service fees (Note 4)	113,202	118,305	155,341
Transfer agent fees (Note 4)	7,220	8,221	10,969
Accounting and legal services fees (Note 4)	28,293	28,201	37,441
State registration fees (Note 4)	32,883	33,213	32,875
Professional fees	16,711	16,700	17,841
Printing and postage (Note 4)	1,063	1,223	1,402
Custodian fees	5,970	5,970	5,970
Trustees’ fees (Note 4)	1,751	1,770	2,347
Registration and filing fees	5,537	6,122	5,790
Other	2,591	2,606	2,892
Total expenses before reductions and amounts recaptured	340,039	346,932	438,390

Net expense reductions and amounts recaptured (Note 4)	(41,463)	(42,818)	(44,454)
Total expenses	298,576	304,114	393,936

Net investment income	4,374,768	4,337,441	5,787,908

Realized and unrealized gain (loss)

Net realized gain on
Investments in affiliated underlying funds	530,219	355,505	194,854
Capital gain distributions received from affiliated underlying funds	5,631,736	5,614,275	7,458,665
	6,161,955	5,969,780	7,653,519
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds	75,719,453	76,062,865	101,308,225
Net realized and unrealized gain	81,881,408	82,032,645	108,961,744

Increase in net assets from operations	$86,256,176	$86,370,086	$114,749,652


32	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

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

Statements of operations For the six months ended 2-28-11 (Unaudited)

Continued


	Lifecycle	Lifecycle	Lifecycle
	2030 Portfolio	2025 Portfolio	2020 Portfolio
Investment income

Income distributions received from affiliated underlying funds	$8,453,624	$11,166,259	$12,994,605

Expenses

Investment management fees (Note 4)	212,749	244,360	238,001
Distribution and service fees (Note 4)	203,507	231,220	236,035
Transfer agent fees (Note 4)	17,446	17,513	21,519
Accounting and legal services fees (Note 4)	48,278	55,802	55,011
State registration fees (Note 4)	33,123	33,278	33,447
Professional fees	19,175	20,102	19,963
Printing and postage (Note 4)	2,044	2,097	2,583
Custodian fees	5,970	5,970	5,970
Trustees’ fees (Note 4)	3,052	3,543	3,539
Registration and filing fees	6,486	7,150	6,844
Other	3,464	3,767	3,767

Total expenses before reductions and amounts recaptured	555,294	624,802	626,679
Net expense reductions and amounts recaptured (Note 4)	(47,163)	(48,449)	(45,538)

Total expenses	508,131	576,353	581,141

Net investment income	7,945,493	10,589,906	12,413,464

Realized and unrealized gain (loss)

Net realized gain (loss) on
Investments in affiliated underlying funds	(301,983)	(339,939)	1,812,566
Capital gain distributions received from affiliated underlying funds	9,349,693	10,509,796	9,849,905
	9,047,710	10,169,857	11,662,471
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds	126,534,165	133,486,084	111,965,288
Net realized and unrealized gain	135,581,875	143,655,941	123,627,759

Increase in net assets from operations	$143,527,368	$154,245,847	$136,041,223


	Semiannual report \| Lifecycle Portfolios	33
See notes to financial statements

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

Statements of operations For the six months ended 2-28-11 (Unaudited)

Continued


	Lifecycle	Lifecycle
	2015 Portfolio	2010 Portfolio
Investment income

Income distributions received from affiliated underlying funds	$10,042,276	$10,345,163

Expenses

Investment management fees (Note 4)	156,464	148,195
Distribution and service fees (Note 4)	162,029	143,833
Transfer agent fees (Note 4)	15,080	10,784
Accounting and legal services fees (Note 4)	37,546	35,716
State registration fees (Note 4)	33,167	33,273
Professional fees	17,800	17,607
Printing and postage (Note 4)	1,757	1,155
Custodian fees	5,970	5,970
Trustees’ fees (Note 4)	2,437	2,441
Registration and filing fees	5,780	4,812
Other	3,206	2,814

Total expenses before reductions and amounts recaptured	441,236	406,600

Net expense reductions and amounts recaptured (Note 4)	(35,728)	(34,970)
Total expenses	405,508	371,630

Net investment income	9,636,768	9,973,533

Realized and unrealized gain (loss)

Net realized gain on
Investments in affiliated underlying funds	474,967	5,148,285
Capital gain distributions received from affiliated underlying funds	6,328,340	5,551,082
	6,803,307	10,699,367
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds	64,131,966	46,242,058
Net realized and unrealized gain	70,935,273	56,941,425

Increase in net assets from operations	$80,572,041	$66,914,958


34	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

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

Statements of changes in net assets

These Statements of Changes in Net Assets show how the value of the Portfolios’ net assets have changed during the last two periods. They reflect income less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Portfolio share transactions.


	Lifecycle 2045 Portfolio		Lifecycle 2040 Portfolio
	Six months ended		Six months ended
	2-28-11 (Unaudited)	Year ended 8-31-10	2-28-11 (Unaudited)	Year ended 8-31-10
Increase (decrease) in net assets

From operations

Net investment income	$4,374,768	$3,536,133	$4,337,441	$3,709,414
Net realized gain (loss)	6,161,955	(2,291,284)	5,969,780	(2,941,995)
Change in net unrealized appreciation	75,719,453	7,646,002	76,062,865	9,004,898
(depreciation)
Increase in net assets resulting
from operations	86,256,176	8,890,851	86,370,086	9,772,317

Distributions to shareholders

From net investment income
Class A	(55,685)	(46,943)	(62,031)	(61,244)
Class R1	(5,093)	(5,561)	(6,192)	(9,129)
Class R3	(4,419)	(3,590)	(12,677)	(13,716)
Class R4	(2,925)	(1,521)	(1,673)	(518)
Class R5	(5,796)	(2,586)	(8,720)	(7,740)
Class 1	(4,453,329)	(3,415,896)	(4,398,789)	(3,556,663)
From net realized gain
Class A	(59,552)	(16,183)	(66,473)	(21,053)
Class R1	(6,741)	(2,179)	(8,213)	(3,564)
Class R3	(5,045)	(1,290)	(14,514)	(4,910)
Class R4	(2,487)	(451)	(1,428)	(153)
Class R5	(3,787)	(635)	(5,700)	(1,903)
Class 1	(3,021,240)	(865,520)	(2,991,844)	(900,289)

Total distributions	(7,626,099)	(4,362,355)	(7,578,254)	(4,580,882)

From Portfolio share transactions
(Note 5)	56,205,673	117,893,478	47,294,027	111,915,589

Total increase	134,835,750	122,421,974	126,085,859	117,107,024

Net assets

Beginning of period	317,604,334	195,182,360	321,367,218	204,260,194

End of period	$452,440,084	$317,604,334	$447,453,077	$321,367,218

Undistributed (accumulated
distributions in excess of) net
investment income	($36,041)	$116,438	($35,529)	$117,112


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	35

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

Statements of changes in net assets

Continued


	Lifecycle 2035 Portfolio		Lifecycle 2030 Portfolio
	Six months ended		Six months ended
	2-28-11 (Unaudited)	Year ended 8-31-10	2-28-11 (Unaudited)	Year ended 8-31-10
Increase (decrease) in net assets

From operations

Net investment income	$5,787,908	$5,075,830	$7,945,493	$7,196,632
Net realized gain (loss)	7,653,519	(4,994,913)	9,047,710	(7,251,391)
Change in net unrealized appreciation
(depreciation)	101,308,225	13,677,597	126,534,165	19,429,008

Increase in net assets resulting
from operations	114,749,652	13,758,514	143,527,368	19,374,249

Distributions to shareholders

From net investment income
Class A	(85,254)	(77,692)	(158,609)	(131,642)
Class R1	(10,397)	(9,922)	(14,893)	(14,717)
Class R3	(8,973)	(6,502)	(14,386)	(7,729)
Class R4	(7,363)	(1,545)	(1,523)	(816)
Class R5	(11,729)	(5,264)	(24,341)	(14,368)
Class 1	(5,881,665)	(4,898,225)	(8,400,670)	(6,495,521)
From net realized gain
Class A	(90,510)	(26,515)	(139,995)	(44,054)
Class R1	(13,634)	(3,841)	(15,683)	(5,562)
Class R3	(10,910)	(2,409)	(14,235)	(2,799)
Class R4	(6,235)	(455)	(1,106)	(236)
Class R5	(7,618)	(1,287)	(13,958)	(3,476)
Class 1	(3,974,505)	(1,233,609)	(4,992,230)	(1,616,531)

Total distributions	(10,108,793)	(6,267,266)	(13,791,629)	(8,337,451)

From Portfolio share transactions
(Note 5)	64,405,133	137,948,628	72,762,239	182,686,736

Total increase	169,045,992	145,439,876	202,497,978	193,723,534

Net assets

Beginning of period	425,646,583	280,206,707	556,924,933	363,201,399

End of period	$594,692,575	$425,646,583	$759,422,911	$556,924,933

Undistributed (accumulated
distributions in excess of) net
investment income	($44,324)	$173,149	$39,820	$708,749


36	Lifecycle Portfolios \| Semiannual report
		See notes to financial statements

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

Statements of changes in net assets

Continued


	Lifecycle 2025 Portfolio		Lifecycle 2020 Portfolio
	Six months ended		Six months ended
	2-28-11 (Unaudited)	Year ended 8-31-10	2-28-11 (Unaudited)	Year ended 8-31-10
Increase (decrease) in net assets

From operations

Net investment income	$10,589,906	$10,596,589	$12,413,464	$13,170,918
Net realized gain (loss)	10,169,857	(7,995,101)	11,662,471	(12,571,924)
Change in net unrealized appreciation
(depreciation)	133,486,084	26,121,187	111,965,288	34,423,179

Increase in net assets resulting
from operations	154,245,847	28,722,675	136,041,223	35,022,173

Distributions to shareholders

From net investment income
Class A	(217,659)	(167,876)	(382,737)	(265,885)
Class R1	(20,104)	(19,923)	(32,194)	(35,124)
Class R3	(24,331)	(12,254)	(51,036)	(16,382)
Class R4	(10,866)	(4,099)	(3,004)	(1,576)
Class R5	(51,292)	(11,407)	(63,619)	(18,259)
Class 1	(12,082,965)	(9,127,164)	(15,220,906)	(10,678,662)
From net realized gain
Class A	(141,903)	(46,480)	(184,096)	(57,599)
Class R1	(14,892)	(6,092)	(16,948)	(8,230)
Class R3	(17,241)	(3,619)	(26,047)	(3,738)
Class R4	(6,108)	(1,008)	(1,296)	(310)
Class R5	(23,891)	(2,401)	(23,761)	(3,165)
Class 1	(5,793,623)	(1,968,640)	(5,814,859)	(1,887,701)

Total distributions	(18,404,875)	(11,370,963)	(21,820,503)	(12,976,631)

From Portfolio share transactions
(Note 5)	88,191,876	192,468,570	78,071,379	196,721,121

Total increase	224,032,848	209,820,282	192,292,099	218,766,663

Net assets

Beginning of period	651,032,751	441,212,469	655,693,916	436,927,253

End of period	$875,065,599	$651,032,751	$847,986,015	$655,693,916

Undistributed net investment
income	$271,240	$2,088,551	$509,915	$3,849,947


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	37

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

Statements of changes in net assets

Continued


	Lifecycle 2015 Portfolio		Lifecycle 2010 Portfolio
	Six months ended		Six months ended
	2-28-11 (Unaudited)	Year ended 8-31-10	2-28-11 (Unaudited)	Year ended 8-31-10
Increase (decrease) in net assets

From operations

Net investment income	$9,636,768	$11,546,411	$9,973,533	$14,138,979
Net realized gain (loss)	6,803,307	(10,908,815)	10,699,367	(6,466,504)
Change in net unrealized appreciation
(depreciation)	64,131,966	28,937,745	46,242,058	18,381,694

Increase in net assets resulting
from operations	80,572,041	29,575,341	66,914,958	26,054,169

Distributions to shareholders

From net investment income
Class A	(351,388)	(244,190)	(289,292)	(140,404)
Class R1	(29,776)	(20,263)	(10,254)	(8,771)
Class R3	(46,495)	(28,413)	(41,261)	(20,105)
Class R4	(1,727)	(860)	(2,183)	(1,430)
Class R5	(28,645)	(4,495)	(59,950)	(4,780)
Class 1	(12,767,901)	(9,397,695)	(14,508,343)	(9,970,848)
From net realized gain
Class A	(122,542)	(47,258)	(73,096)	(24,119)
Class R1	(11,132)	(4,166)	(2,740)	(1,619)
Class R3	(16,975)	(5,723)	(10,819)	(3,621)
Class R4	(553)	(154)	(513)	(225)
Class R5	(8,163)	(727)	(12,848)	(667)
Class 1	(3,705,993)	(1,546,352)	(3,148,858)	(1,415,580)

Total distributions	(17,091,290)	(11,300,296)	(18,160,157)	(11,592,169)

From Portfolio share transactions
(Note 5)	53,140,458	122,608,205	(10,730,652)	286,012,763

Total increase	116,621,209	140,883,250	38,024,149	300,474,763

Net assets

Beginning of period	456,633,520	315,750,270	459,016,242	158,541,479

End of period	$573,254,729	$456,633,520	$497,040,391	$459,016,242

Undistributed net investment
income	$493,707	$4,082,871	$569,366	$5,507,116


38	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Financial highlights

These Financial Highlights show how each Portfolio’s net asset value for a share has changed since the end of the previous period.


Lifecycle 2045 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses
			realized	Total							before	Expenses		Net
	Net asset	Net	and	from	From net						reduc-	including		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	reductions	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	and amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.11	0.08	1.99	2.07	(0.07)	(0.07)	—	(0.14)	10.04	25.63^5,6	0.80^7,8	0.59^7,8	1.76⁷	9,008	9
08-31-2010	7.76	0.07	0.40	0.47	(0.09)	(0.03)	—	(0.12)	8.11	6.00⁵	0.85⁸	0.60^8,9	0.87	6,026	19
08-31-2009	9.56	0.06	(1.69)	(1.63)	(0.08)	(0.09)	—	(0.17)	7.76	(16.60)⁵	1.90⁸	0.63⁸	0.86	3,488	22
08-31-2008	10.94	0.05	(1.21)	(1.16)	(0.06)	(0.16)	—	(0.22)	9.56	(10.83)⁵	1.61⁸	0.66^8,10	0.44	1,874	16
08-31-2007¹¹	10.00	(0.04)	1.22	1.18	(0.06)	(0.18)	—	(0.24)	10.94	11.97^5,6	1.94^7,12	0.62^7,12	(0.45)⁷	1,348	5

CLASS R1

02-28-2011⁴	8.10	0.07	1.99	2.06	(0.06)	(0.07)	—	(0.13)	10.03	25.49^5,6	2.36^7,8	0.74^7,8	1.55⁷	1,011	9
08-31-2010	7.75	0.07	0.39	0.46	(0.08)	(0.03)	—	(0.11)	8.10	5.88⁵	1.65⁸	0.75^8,13	0.78	721	19
08-31-2009	9.52	0.06	(1.69)	(1.63)	(0.05)	(0.09)	—	(0.14)	7.75	(16.72)⁵	5.27⁸	0.86⁸	0.87	616	22
08-31-2008	10.92	0.01	(1.19)	(1.18)	(0.06)	(0.16)	—	(0.22)	9.52	(11.05)⁵	12.47⁸	0.89^8,10	0.08	181	16
08-31-2007¹¹	10.00	(0.01)	1.16	1.15	(0.05)	(0.18)	—	(0.23)	10.92	11.68^5,6	16.68^7,12	0.87^7,12	(0.09)⁷	113	5

CLASS R3

02-28-2011⁴	8.10	0.08	2.00	2.08	(0.07)	(0.07)	—	(0.14)	10.04	25.73^5,6	2.71^7,8	0.64^7,8	1.68⁷	731	9
08-31-2010	7.76	0.07	0.39	0.46	(0.09)	(0.03)	—	(0.12)	8.10	5.83⁵	2.47⁸	0.65^8,13	0.84	570	19
08-31-2009	9.53	0.06	(1.68)	(1.62)	(0.06)	(0.09)	—	(0.15)	7.76	(16.58)⁵	6.51⁸	0.76⁸	0.95	259	22
08-31-2008	10.93	0.03	(1.21)	(1.18)	(0.06)	(0.16)	—	(0.22)	9.53	(11.04)⁵	10.48⁸	0.81^8,10	0.28	283	16
08-31-2007¹¹	10.00	—¹⁴	1.16	1.16	(0.05)	(0.18)	—	(0.23)	10.93	11.80^5,6	16.45^7,12	0.80^7,12	(0.03)⁷	118	5

CLASS R4

02-28-2011⁴	8.13	0.09	2.00	2.09	(0.09)	(0.07)	—	(0.16)	10.06	25.79^5,6	4.44^7,8	0.39^7,8	1.98⁷	371	9
08-31-2010	7.78	0.07	0.42	0.49	(0.11)	(0.03)	—	(0.14)	8.13	6.17⁵	3.79⁸	0.40^8,13	0.82	283	19
08-31-2009	9.57	0.08	(1.70)	(1.62)	(0.08)	(0.09)	—	(0.17)	7.78	(16.35)⁵	6.09⁸	0.48⁸	1.10	324	22
08-31-2008	10.95	0.06	(1.21)	(1.15)	(0.07)	(0.16)	—	(0.23)	9.57	(10.76)⁵	14.15⁸	0.52^8,10	0.55	142	16
08-31-2007¹¹	10.00	0.02	1.17	1.19	(0.06)	(0.18)	—	(0.24)	10.95	12.06^5,6	16.32^7,12	0.52^7,12	0.26⁷	112	5

CLASS R5

02-28-2011⁴	8.16	0.12	1.99	2.11	(0.12)	(0.07)	—	(0.19)	10.08	25.91^5,6	3.12^7,8	0.09^7,8	2.51⁷	630	9
08-31-2010	7.80	0.13	0.39	0.52	(0.13)	(0.03)	—	(0.16)	8.16	6.55⁵	3.49⁸	0.10^8,13	1.50	218	19
08-31-2009	9.61	0.11	(1.72)	(1.61)	(0.11)	(0.09)	—	(0.20)	7.80	(16.12)⁵	7.40⁸	0.19⁸	1.60	216	22
08-31-2008	10.97	0.08	(1.20)	(1.12)	(0.08)	(0.16)	—	(0.24)	9.61	(10.47)⁵	12.02⁸	0.24^8,10	0.72	161	16
08-31-2007¹¹	10.00	0.05	1.16	1.21	(0.06)	(0.18)	—	(0.24)	10.97	12.32^5,6	16.02^7,12	0.23^7,12	0.55⁷	112	5

CLASS 1

02-28-2011⁴	8.15	0.11	2.00	2.11	(0.11)	(0.07)	—	(0.18)	10.08	26.01^5,6	0.14^7,8	0.14^7,8	2.24⁷	440,689	9
08-31-2010	7.80	0.11	0.39	0.50	(0.12)	(0.03)	—	(0.15)	8.15	6.38⁵	0.16⁸	0.15⁸	1.32	309,787	19
08-31-2009	9.61	0.10	(1.70)	(1.60)	(0.12)	(0.09)	—	(0.21)	7.80	(16.06)⁵	0.19⁸	0.19⁸	1.40	190,278	22
08-31-2008	10.97	0.06	(1.18)	(1.12)	(0.08)	(0.16)	—	(0.24)	9.61	(10.47)⁵	0.24⁸	0.20⁸	0.59	97,667	16
08-31-2007¹¹	10.00	(0.01)	1.23	1.22	(0.07)	(0.18)	—	(0.25)	10.97	12.32^5,6	0.64^7,12	0.20^7,12	(0.15)⁷	23,187	5


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	39

Financial highlights

Continued

Lifecycle 2045 Portfolio continued
¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The
range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.14%, 0.48%–1.17%, 0.49%–1.31% and 0.49%–1.13% for the peri-
ods ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes small account fee credits of 0.02% of average net assets.
¹⁰Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹¹The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹²Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
¹³Includes the impact of expense recapture for the following period ended 8-31-10: 0.08%, 0.07%, 0.17% and 0.17% of average net assets for Class R1, Class R3,
Class R4 and Class R5 shares, respectively. See Note 4.
¹⁴Less than ($0.005) per share.


Lifecycle 2040 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.12	0.08	1.99	2.07	(0.07)	(0.07)	—	(0.14)	10.05	25.60^5,6	0.78^7,8	0.59^7,8	1.77⁷	10,024	9
08-31-2010	7.77	0.08	0.39	0.47	(0.09)	(0.03)	—	(0.12)	8.12	6.00⁵	0.74⁸	0.60^8,9,10	0.91	6,843	20
08-31-2009	9.56	0.06	(1.67)	(1.61)	(0.08)	(0.10)	—	(0.18)	7.77	(16.33)⁵	1.61⁸	0.63⁸	0.90	4,434	20
08-31-2008	10.96	0.05	(1.22)	(1.17)	(0.07)	(0.16)	—	(0.23)	9.56	(10.92)⁵	2.15⁸	0.65^8,11	0.49	1,257	16
08-31-2007¹²	10.00	(0.02)	1.20	1.18	(0.05)	(0.17)	—	(0.22)	10.96	11.99^5,6	3.15^7,13	0.62^7,13	(0.18)⁷	584	3

CLASS R1

02-28-2011⁴	8.10	0.06	2.01	2.07	(0.06)	(0.07)	—	(0.13)	10.04	25.61^5,6	1.98^7,8	0.74^7,8	1.33⁷	1,183	9
08-31-2010	7.76	0.06	0.39	0.45	(0.08)	(0.03)	—	(0.11)	8.10	5.75	1.34⁸	0.75^8,9	0.70	1,190	20
08-31-2009	9.53	0.07	(1.69)	(1.62)	(0.05)	(0.10)	—	(0.15)	7.76	(16.54)⁵	4.57⁸	0.85⁸	0.98	728	20
08-31-2008	10.94	0.01	(1.20)	(1.19)	(0.06)	(0.16)	—	(0.22)	9.53	(11.05)⁵	9.48⁸	0.89^8,11	0.09	200	16
08-31-2007¹²	10.00	(0.01)	1.17	1.16	(0.05)	(0.17)	—	(0.22)	10.94	11.70^5,6	16.61^7,13	0.87^7,13	(0.09)⁷	112	3

CLASS R3

02-28-2011⁴	8.10	0.08	1.99	2.07	(0.07)	(0.07)	—	(0.14)	10.03	25.60^5,6	1.46^7,8	0.64^7,8	1.71⁷	2,166	9
08-31-2010	7.75	0.08	0.39	0.47	(0.09)	(0.03)	—	(0.12)	8.10	5.97⁵	1.25⁸	0.65^8,9	0.90	1,547	20
08-31-2009	9.53	0.08	(1.70)	(1.62)	(0.06)	(0.10)	—	(0.16)	7.75	(16.52)⁵	1.96⁸	0.76⁸	1.14	1,271	20
08-31-2008	10.95	0.01	(1.21)	(1.20)	(0.06)	(0.16)	—	(0.22)	9.53	(11.14)⁵	5.48⁸	0.83^8,11	0.06	1,181	16
08-31-2007¹²	10.00	(0.01)	1.18	1.17	(0.05)	(0.17)	—	(0.22)	10.95	11.82^5,6	15.59^7,13	0.80^7,13	(0.07)⁷	141	3

CLASS R4

02-28-2011⁴	8.13	0.09	1.99	2.08	(0.09)	(0.07)	—	(0.16)	10.05	25.67^5,6	7.23^7,8	0.39^7,8	1.91⁷	201	9
08-31-2010	7.78	0.04	0.45	0.49	(0.11)	(0.03)	—	(0.14)	8.13	6.18⁵	6.62⁸	0.40^8,9	0.53	156	20
08-31-2009	9.58	0.08	(1.69)	(1.61)	(0.09)	(0.10)	—	(0.19)	7.78	(16.28)⁵	6.79⁸	0.48⁸	1.21	253	20
08-31-2008	10.97	0.04	(1.20)	(1.16)	(0.07)	(0.16)	—	(0.23)	9.58	(10.76)⁵	11.68⁸	0.53^8,11	0.40	173	16
08-31-2007¹²	10.00	0.02	1.17	1.19	(0.05)	(0.17)	—	(0.22)	10.97	12.07^5,6	16.23^7,13	0.52^7,13	0.26⁷	112	3


40	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Financial highlights

Continued


Lifecycle 2040 Portfolio continued
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total	value, end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS R5

02-28-2011⁴	8.16	0.11	2.00	2.11	(0.12)	(0.07)	—	(0.19)	10.08	25.91^5,6	2.06^7,8	0.09^7,8	2.42⁷	885	9
08-31-2010	7.80	0.14	0.38	0.52	(0.13)	(0.03)	—	(0.16)	8.16	6.56⁵	1.52⁸	0.10^8,9	1.64	456	20
08-31-2009	9.62	0.12	(1.73)	(1.61)	(0.11)	(0.10)	—	(0.21)	7.80	(16.05)⁵	2.54⁸	0.19⁸	1.80	561	20
08-31-2008	10.99	0.05	(1.18)	(1.13)	(0.08)	(0.16)	—	(0.24)	9.62	(10.48)⁵	7.95⁸	0.24^8,11	0.48	633	16
08-31-2007¹²	10.00	0.05	1.17	1.22	(0.06)	(0.17)	—	(0.23)	10.99	12.33^5,6	15.71^7,13	0.23^7,13	0.53⁷	115	3

CLASS 1

02-28-2011⁴	8.15	0.10	2.00	2.10	(0.11)	(0.07)	—	(0.18)	10.07	25.89^5,6	0.14^7,8	0.14^7,8	2.23⁷	432,994	9
08-31-2010	7.79	0.11	0.40	0.51	(0.12)	(0.03)	—	(0.15)	8.15	6.52⁵	0.16⁸	0.15⁸	1.34	311,176	20
08-31-2009	9.62	0.10	(1.71)	(1.61)	(0.12)	(0.10)	—	(0.22)	7.79	(16.09)⁵	0.18⁸	0.18⁸	1.46	197,012	20
08-31-2008	10.99	0.06	(1.19)	(1.13)	(0.08)	(0.16)	—	(0.24)	9.62	(10.48)⁵	0.22⁸	0.20⁸	0.61	111,814	16
08-31-2007¹²	10.00	(0.01)	1.23	1.22	(0.06)	(0.17)	—	(0.23)	10.99	12.34^5,6	0.62^7,13	0.20^7,13	(0.16)⁷	25,954	3

¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The
range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.14%, 0.48%–1.17%, 0.49%–1.31% and 0.49%–1.13% for the peri-
ods ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes the impact of expense recapture for the following period ended 8-31-10: 0.01%, 0.03%, less than 0.005%, 0.31% and 0.05% of average net assets for
Class A, Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹⁰Includes small account fee credits of 0.01% of average net assets.
¹¹Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹²The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹³Does not include expenses of the underlying affiliated funds in which the Portfolio invests.


Lifecycle 2035 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses
			realized	Total							before	Expenses		Net
	Net asset	Net	and	from	From net						reduc-	including		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	reductions	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	and amounts	investment	period (in	Portfolio
	of period	come (loss) on	invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.14	0.09	1.99	2.08	(0.07)	(0.07)	—	(0.14)	10.08	25.67^5,6	0.73^7,8	0.59^7,8	1.81⁷	13,481	9
08-31-2010	7.79	0.07	0.40	0.47	(0.09)	(0.03)	—	(0.12)	8.14	6.00⁶	0.70⁸	0.60^8,9	0.88	8,883	20
08-31-2009	9.61	0.07	(1.70)	(1.63)	(0.08)	(0.11)	—	(0.19)	7.79	(16.39)⁶	1.29⁸	0.62⁸	1.06	5,950	20
08-31-2008	11.02	0.02	(1.20)	(1.18)	(0.08)	(0.15)	—	(0.23)	9.61	(10.93)⁶	1.80⁸	0.64^8,10	0.20	2,132	14
08-31-2007¹¹	10.00	(0.02)	1.20	1.18	(0.04)	(0.12)	—	(0.16)	11.02	11.92^6,5	2.47^7,12	0.62^7,12	(0.20)⁷	610	4


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	41

Financial highlights

Continued


Lifecycle 2035 Portfolio continued
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses
			realized	Total							before	Expenses		Net
	Net asset	Net	and	from	From net						reduc-	including		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	reductions	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	and amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS R1

02-28-2011⁴	8.13	0.07	2.00	2.07	(0.06)	(0.07)	—	(0.13)	10.07	25.53^5,6	1.62^7,8	0.74^7,8	1.55⁷	1,992	9
08-31-2010	7.79	0.06	0.39	0.45	(0.08)	(0.03)	—	(0.11)	8.13	5.74⁶	1.32⁸	0.75^8,9	0.75	1,453	20
08-31-2009	9.58	0.08	(1.71)	(1.63)	(0.05)	(0.11)	—	(0.16)	7.79	(16.50)⁶	4.49⁸	0.84⁸	1.13	647	20
08-31-2008	11.00	—¹³	(1.19)	(1.19)	(0.08)	(0.15)	—	(0.23)	9.58	(11.06)⁶	10.40⁸	0.88^8,10	(0.02)	177	14
08-31-2007¹¹	10.00	—¹³	1.15	1.15	(0.03)	(0.12)	—	(0.15)	11.00	11.62^6,5	16.29^7,12	0.86^7,12	0.01⁷	112	4

CLASS R3

02-28-2011⁴	8.14	0.08	1.99	2.07	(0.06)	(0.07)	—	(0.13)	10.08	25.56^5,6	1.65^7,8	0.69^7,8	1.68⁷	1,719	9
08-31-2010	7.79	0.05	0.42	0.47	(0.09)	(0.03)	—	(0.12)	8.14	5.91⁶	1.53⁸	0.70^8,9	0.59	1,167	20
08-31-2009	9.59	0.06	(1.69)	(1.63)	(0.06)	(0.11)	—	(0.17)	7.79	(16.47)⁶	4.47⁸	0.77⁸	0.84	451	20
08-31-2008	11.01	0.02	(1.21)	(1.19)	(0.08)	(0.15)	—	(0.23)	9.59	(11.05)⁶	9.94⁸	0.81^8,10	0.24	278	14
08-31-2007¹¹	10.00	0.01	1.15	1.16	(0.03)	(0.12)	—	(0.15)	11.01	11.74^6,5	16.22^7,12	0.79^7,12	0.08⁷	112	4

CLASS R4

02-28-2011⁴	8.18	0.10	2.00	2.10	(0.09)	(0.07)	—	(0.16)	10.12	25.77^5,6	2.05^7,8	0.39^7,8	2.02⁷	984	9
08-31-2010	7.81	0.04	0.47	0.51	(0.11)	(0.03)	—	(0.14)	8.18	6.43⁶	2.65⁸	0.40^8,9	0.47	574	20
08-31-2009	9.63	0.07	(1.69)	(1.62)	(0.09)	(0.11)	—	(0.20)	7.81	(16.24)⁶	9.27⁸	0.47⁸	1.06	182	20
08-31-2008	11.03	0.04	(1.20)	(1.16)	(0.09)	(0.15)	—	(0.24)	9.63	(10.77)⁶	11.02⁸	0.52^8,10	0.41	219	14
08-31-2007¹¹	10.00	0.03	1.16	1.19	(0.04)	(0.12)	—	(0.16)	11.03	12.00^6,5	15.92^7,12	0.50^7,12	0.36⁷	112	4

CLASS R5

02-28-2011⁴	8.19	0.13	1.99	2.12	(0.12)	(0.07)	—	(0.19)	10.12	25.96^5,6	1.76^7,8	0.09^7,8	2.72⁷	1,128	9
08-31-2010	7.83	0.16	0.36	0.52	(0.13)	(0.03)	—	(0.16)	8.19	6.55⁶	2.52⁸	0.10^8,9	1.93	281	20
08-31-2009	9.67	0.11	(1.72)	(1.61)	(0.12)	(0.11)	—	(0.23)	7.83	(16.01)⁶	7.18⁸	0.17⁸	1.61	199	20
08-31-2008	11.05	0.08	(1.21)	(1.13)	(0.10)	(0.15)	—	(0.25)	9.67	(10.49)⁶	11.07⁸	0.23^8,10	0.78	149	14
08-31-2007¹¹	10.00	0.06	1.15	1.21	(0.04)	(0.12)	—	(0.16)	11.05	12.26^6,5	15.08^7,12	0.22^7,12	0.62⁷	119	4

CLASS 1

02-28-2011⁴	8.18	0.11	2.01	2.12	(0.11)	(0.07)	—	(0.18)	10.12	26.06^5,6	0.14^7,8	0.14^7,8	2.24⁷	575,388	9
08-31-2010	7.83	0.12	0.39	0.51	(0.13)	(0.03)	—	(0.16)	8.18	6.38⁶	0.15⁸	0.15^8,9	1.36	413,289	20
08-31-2009	9.68	0.10	(1.72)	(1.62)	(0.12)	(0.11)	—	(0.23)	7.83	(16.02)⁶	0.17⁸	0.17⁸	1.49	272,778	20
08-31-2008	11.05	0.07	(1.19)	(1.12)	(0.10)	(0.15)	—	(0.25)	9.68	(10.40)⁶	0.19⁸	0.19⁸	0.66	161,263	14
08-31-2007¹¹	10.00	(0.01)	1.23	1.22	(0.05)	(0.12)	—	(0.17)	11.05	12.27^6,5	0.45^7,12	0.20^7,12	(0.06)⁷	39,674	4

¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Not annualized.
⁶Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The
range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.14%, 0.48%–1.17%, 0.49%–1.31% and 0.49%–1.13% for the peri-
ods ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes the impact of expense recapture for the following period ended 8-31-10: 0.01%, 0.03%, 0.03%, 0.12% and 0.12% of average net assets for Class A,
Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹⁰Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹¹The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹²Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
¹³Less than $0.005 per share.


42	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Financial highlights

Continued


Lifecycle 2030 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.13	0.09	1.91	2.00	(0.08)	(0.07)	—	(0.15)	9.98	24.71^5,6	0.67^7,8	0.59^7,8	1.91⁷	21,522	11
08-31-2010	7.76	0.09	0.40	0.49	(0.09)	(0.03)	—	(0.12)	8.13	6.31⁵	0.66⁸	0.59^8,12	1.04	14,723	21
08-31-2009	9.57	0.08	(1.70)	(1.62)	(0.08)	(0.11)	—	(0.19)	7.76	(16.36)⁵	1.06⁸	0.61⁸	1.13	9,351	23
08-31-2008	10.91	0.04	(1.18)	(1.14)	(0.07)	(0.13)	—	(0.20)	9.57	(10.66)⁵	1.33⁸	0.63^8,9	0.43	3,345	10
08-31-2007¹⁰	10.00	(0.02)	1.14	1.12	(0.06)	(0.15)	—	(0.21)	10.91	11.38^5,6	2.02^7,11	0.63^7,11	(0.23)⁷	1,135	3

CLASS R1

02-28-2011⁴	8.10	0.08	1.91	1.99	(0.07)	(0.07)	—	(0.14)	9.95	24.63^5,6	1.50^7,8	0.74^7,8	1.68⁷	2,282	11
08-31-2010	7.74	0.07	0.40	0.47	(0.08)	(0.03)	—	(0.11)	8.10	6.06⁵	1.16⁸	0.74^8,12	0.81	1,812	21
08-31-2009	9.52	0.07	(1.69)	(1.62)	(0.05)	(0.11)	—	(0.16)	7.74	(16.52)⁵	3.04⁸	0.83⁸	1.04	1,245	23
08-31-2008	10.88	—¹³	(1.17)	(1.17)	(0.06)	(0.13)	—	(0.19)	9.52	(10.92)⁵	8.40⁸	0.88^8,9	0.02	320	10
08-31-2007¹⁰	10.00	0.01	1.08	1.09	(0.06)	(0.15)	—	(0.21)	10.88	10.98^5,6	16.24^7,11	0.86^7,11	0.12⁷	112	3

CLASS R3

02-28-2011⁴	8.11	0.08	1.91	1.99	(0.07)	(0.07)	—	(0.14)	9.96	24.66^5,6	1.40^7,8	0.69^7,8	1.78⁷	2,361	11
08-31-2010	7.75	0.06	0.42	0.48	(0.09)	(0.03)	—	(0.12)	8.11	6.10⁵	1.39⁸	0.69^8,12	0.67	1,615	21
08-31-2009	9.53	0.08	(1.69)	(1.61)	(0.06)	(0.11)	—	(0.17)	7.75	(16.38)⁵	3.09⁸	0.76⁸	1.12	609	23
08-31-2008	10.88	0.08	(1.24)	(1.16)	(0.06)	(0.13)	—	(0.19)	9.53	(10.83)⁵	4.24⁸	0.78^8,9	0.76	676	10
08-31-2007¹⁰	10.00	0.02	1.07	1.09	(0.06)	(0.15)	—	(0.21)	10.88	11.00^5,6,14	16.18^7,11	0.79^7,11	0.19⁷	112	3

CLASS R4

02-28-2011⁴	8.12	0.10	1.91	2.01	(0.10)	(0.07)	—	(0.17)	9.96	24.84^5,6	8.92^7,8	0.39^7,8	2.04⁷	212	11
08-31-2010	7.76	0.06	0.44	0.50	(0.11)	(0.03)	—	(0.14)	8.12	6.37⁵	5.08⁸	0.39^8,12	0.76	106	21
08-31-2009	9.55	0.10	(1.69)	(1.59)	(0.09)	(0.11)	—	(0.20)	7.76	(16.08)⁵	5.43⁸	0.45⁸	1.52	360	23
08-31-2008	10.91	0.08	(1.22)	(1.14)	(0.09)	(0.13)	—	(0.22)	9.55	(10.66)⁵	14.83⁸	0.49^8,9	0.79	115	10
08-31-2007¹⁰	10.00	0.04	1.08	1.12	(0.06)	(0.15)	—	(0.21)	10.91	11.36^5,6,14	15.88^7,11	0.50^7,11	0.47⁷	111	3

CLASS R5

02-28-2011⁴	8.13	0.13	1.90	2.03	(0.13)	(0.07)	—	(0.20)	9.96	25.03^5,6	1.00^7,8	0.09^7,8	2.75⁷	2,142	11
08-31-2010	7.76	0.15	0.38	0.53	(0.13)	(0.03)	—	(0.16)	8.13	6.76⁵	0.96⁸	0.09^8,12	1.82	724	21
08-31-2009	9.57	0.12	(1.71)	(1.59)	(0.11)	(0.11)	—	(0.22)	7.76	(15.88)⁵	1.61⁸	0.17⁸	1.77	979	23
08-31-2008	10.93	0.04	(1.15)	(1.11)	(0.12)	(0.13)	—	(0.25)	9.57	(10.41)⁵	6.18⁸	0.24^8,9	0.42	1,002	10
08-31-2007¹⁰	10.00	0.07	1.08	1.15	(0.07)	(0.15)	—	(0.22)	10.93	11.62^5,6,14	15.57^7,11	0.22^7,11	0.76⁷	112	3

CLASS 1

02-28-2011⁴	8.12	0.11	1.91	2.02	(0.12)	(0.07)	—	(0.19)	9.95	25.00^5,6	0.14^7,8	0.14^7,8	2.38⁷	730,904	11
08-31-2010	7.75	0.12	0.41	0.53	(0.13)	(0.03)	—	(0.16)	8.12	6.72⁵	0.15⁸	0.14⁸	1.48	537,945	21
08-31-2009	9.57	0.11	(1.70)	(1.59)	(0.12)	(0.11)	—	(0.23)	7.75	(15.90)	0.16⁸	0.16⁸	1.58	350,658	23
08-31-2008	10.93	0.08	(1.19)	(1.11)	(0.12)	(0.13)	—	(0.25)	9.57	(10.41)	0.18⁸	0.18⁸	0.75	219,711	10
08-31-2007¹⁰	10.00	0.01	1.14	1.15	(0.07)	(0.15)	—	(0.22)	10.93	11.63^5,6	0.38^7,11	0.20^7,11	0.12⁷	50,070	3


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	43

Financial highlights

Continued

Lifecycle 2030 Portfolio continued
¹¹Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
¹²Includes the impact of expense recapture for the following period ended 8-31-10: 0.01%, 0.01%, 0.02%, 0.22% and 0.02% of average net assets for Class A,
Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹³Less than $0.005 per share.
¹⁴The Adviser made a payment to the Portfolio of $1,696. Excluding this payment, total returns would have been 11.00%, 11.26% and 11.52% for Class R3, Class R4
and Class R5, respectively. There was no effect to the total returns for Class A, Class R1 and Class 1.


Lifecycle 2025 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses
			realized	Total							before	Expenses		Net
	Net asset	Net	and	from	From net						reduc-	including re-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	ductions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.28	0.11	1.75	1.86	(0.11)	(0.07)	—	(0.18)	9.96	22.58^5,6	0.67⁷	0.58^7,8	2.30⁷	21,142	13
08-31-2010	7.87	0.12	0.44	0.56	(0.12)	(0.03)	—	(0.15)	8.28	7.02⁶	0.64	0.59^8,9	1.37	14,515	22
08-31-2009	9.57	0.11	(1.58)	(1.47)	(0.12)	(0.11)	—	(0.23)	7.87	(14.74)⁶	0.98	0.61⁸	1.59	9,419	25
08-31-2008	10.85	0.05	(1.12)	(1.07)	(0.08)	(0.13)	—	(0.21)	9.57	(10.08)⁶	1.49	0.62^8,10	0.52	3,604	9
08-31-2007¹¹	10.00	0.02	1.03	1.05	(0.07)	(0.13)	—	(0.20)	10.85	10.57^6,5	2.25^7,12	0.63^7,12	0.19⁷	661	3

CLASS R1

02-28-2011⁴	8.25	0.10	1.75	1.85	(0.10)	(0.07)	—	(0.17)	9.93	22.50^5,6	1.56⁷	0.73^7,8	2.09⁷	2,123	13
08-31-2010	7.84	0.11	0.44	0.55	(0.11)	(0.03)	—	(0.14)	8.25	6.91⁶	1.21	0.74^8,9	1.33	1,771	22
08-31-2009	9.52	0.09	(1.57)	(1.48)	(0.09)	(0.11)	—	(0.20)	7.84	(15.01)⁶	3.27	0.82⁸	1.40	1,197	25
08-31-2008	10.83	0.03	(1.14)	(1.11)	(0.07)	(0.13)	—	(0.20)	9.52	(10.42)⁶	8.37	0.87^8,10	0.27	285	9
08-31-2007¹¹	10.00	0.03	0.99	1.02	(0.06)	(0.13)	—	(0.19)	10.83	10.28^6,5	16.14^7,12	0.87^7,12	0.35⁷	111	3

CLASS R3

02-28-2011⁴	8.25	0.10	1.76	1.86	(0.10)	(0.07)	—	(0.17)	9.94	22.67^5,6	1.33⁷	0.68^7,8	2.13⁷	2,688	13
08-31-2010	7.85	0.08	0.46	0.54	(0.11)	(0.03)	—	(0.14)	8.25	6.82⁶	1.26	0.69^8,9	0.97	1,937	22
08-31-2009	9.53	0.06	(1.53)	(1.47)	(0.10)	(0.11)	—	(0.21)	7.85	(14.87)⁶	2.11	0.75⁸	0.87	1,381	25
08-31-2008	10.84	0.13	(1.24)	(1.11)	(0.07)	(0.13)	—	(0.20)	9.53	(10.41)⁶	5.37	0.78^8,10	1.22	456	9
08-31-2007¹¹	10.00	0.03	1.00	1.03	(0.06)	(0.13)	—	(0.19)	10.84	10.40^6,5	14.43^7,12	0.81^7,12	0.34⁷	186	3

CLASS R4

02-28-2011⁴	8.27	0.11	1.77	1.88	(0.13)	(0.07)	—	(0.20)	9.95	22.83^5,6	2.01⁷	0.38^7,8	2.42⁷	1,029	13
08-31-2010	7.85	0.11	0.47	0.58	(0.13)	(0.03)	—	(0.16)	8.27	7.35⁶	2.10	0.39^8,9	1.32	660	22
08-31-2009	9.55	0.11	(1.58)	(1.47)	(0.12)	(0.11)	—	(0.23)	7.85	(14.68)⁶	7.64	0.45⁸	1.56	260	25
08-31-2008	10.86	0.09	(1.17)	(1.08)	(0.10)	(0.13)	—	(0.23)	9.55	(10.16)⁶	11.76	0.49^8,10	0.90	207	9
08-31-2007¹¹	10.00	0.06	0.99	1.05	(0.06)	(0.13)	—	(0.19)	10.86	10.65^6,5	15.77^7,12	0.52^7,12	0.70⁷	111	3

CLASS R5

02-28-2011⁴	8.27	0.15	1.74	1.89	(0.16)	(0.07)	—	(0.23)	9.93	22.92^5,6	0.71⁷	0.09^7,8	3.18⁷	3,574	13
08-31-2010	7.86	0.17	0.42	0.59	(0.15)	(0.03)	—	(0.18)	8.27	7.48⁶	1.20	0.09^8,9	1.97	831	22
08-31-2009	9.57	0.14	(1.59)	(1.45)	(0.15)	(0.11)	—	(0.26)	7.86	(14.38)⁶	4.27	0.16⁸	2.08	339	25
08-31-2008	10.88	0.09	(1.14)	(1.05)	(0.13)	(0.13)	—	(0.26)	9.57	(9.91)⁶	7.87	0.21^8,10	0.92	285	9
08-31-2007¹¹	10.00	0.09	0.99	1.08	(0.07)	(0.13)	—	(0.20)	10.88	10.91^6,5,13	15.34^7,12	0.23^7,12	0.98⁷	113	3

CLASS 1

02-28-2011⁴	8.27	0.13	1.75	1.88	(0.15)	(0.07)	—	(0.22)	9.93	22.87^5,6	0.14⁷	0.13^7,8	2.74⁷	844,509	13
08-31-2010	7.86	0.16	0.43	0.59	(0.15)	(0.03)	—	(0.18)	8.27	7.44⁶	0.14	0.14⁸	1.83	631,319	22
08-31-2009	9.58	0.14	(1.59)	(1.45)	(0.16)	(0.11)	—	(0.27)	7.86	(14.37)⁶	0.16	0.16⁸	2.08	428,618	25
08-31-2008	10.88	0.11	(1.15)	(1.04)	(0.13)	(0.13)	—	(0.26)	9.58	(9.81)⁶	0.17	0.17^8,10	1.08	280,532	9
08-31-2007¹¹	10.00	0.04	1.04	1.08	(0.07)	(0.13)	—	(0.20)	10.88	10.93^5,6	0.31^7,12	0.20^7,12	0.39⁷	67,149	3


44	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Financial highlights

Continued

Lifecycle 2025 Portfolio continued
¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Not annualized.
⁶Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The
range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.14%, 0.48%–1.17%, 0.49%–1.31% and 0.49%–1.13% for the peri-
ods ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes the impact of expense recapture for the following period ended 8-31-10: 0.01%, 0.01%, 0.01%, 0.08% and 0.04% of average net assets for Class A,
Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹⁰Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹¹The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹²Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
¹³The Adviser made a payment to the Portfolio of $2,707. Excluding this payment, total returns would have been 10.91% for Class R5. There was no effect to the total
returns for Class A, Class R1, Class R3, Class R4 and Class 1.


Lifecycle 2020 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.52	0.14	1.55	1.69	(0.15)	(0.08)	—	(0.23)	9.98	19.96^5,6	0.66^7,8	0.58^7,8	2.87⁷	25,822	15
08-31-2010	8.06	0.17	0.47	0.64	(0.15)	(0.03)	—	(0.18)	8.52	7.91⁵	0.63⁸	0.59^8,9	1.92	18,528	23
08-31-2009	9.65	0.14	(1.45)	(1.31)	(0.16)	(0.12)	—	(0.28)	8.06	(12.75)⁵	0.86⁸	0.61⁸	2.06	13,067	26
08-31-2008	10.80	0.12	(1.05)	(0.93)	(0.11)	(0.11)	—	(0.22)	9.65	(8.82)⁵	1.15⁸	0.62^8,10	1.18	4,285	10
08-31-2007¹¹	10.00	0.04	0.94	0.98	(0.07)	(0.11)	—	(0.18)	10.80	9.87^5,6,12	1.59^7,13	0.64^7,13	0.49⁷	1,491	7

CLASS R1

02-28-2011⁴	8.51	0.13	1.55	1.68	(0.14)	(0.08)	—	(0.22)	9.97	19.82^5,6	1.50^7,8	0.73⁷	2.65⁷	2,257	15
08-31-2010	8.04	0.15	0.49	0.64	(0.14)	(0.03)	—	(0.17)	8.51	7.92⁵	1.12⁸	0.74^8,9	1.77	1,859	23
08-31-2009	9.61	0.15	(1.47)	(1.32)	(0.13)	(0.12)	—	(0.25)	8.04	(13.00)⁵	2.11⁸	0.83⁸	2.14	1,675	26
08-31-2008	10.78	0.08	(1.04)	(0.96)	(0.10)	(0.11)	—	(0.21)	9.61	(9.07)⁵	9.71⁸	0.86^8,10	0.77	250	10
08-31-2007¹¹	10.00	0.07	0.88	0.95	(0.06)	(0.11)	—	(0.17)	10.78	9.58^5,6,12	16.14^7,13	0.87^7,13	0.74⁷	110	7

CLASS R3

02-28-2011⁴	8.51	0.13	1.55	1.68	(0.14)	(0.08)	—	(0.22)	9.97	19.88^5,6	1.12^7,8	0.68^7,8	2.66⁷	3,818	15
08-31-2010	8.04	0.12	0.52	0.64	(0.14)	(0.03)	—	(0.17)	8.51	7.96⁵	1.17⁸	0.69^8,9	1.38	2,817	23
08-31-2009	9.62	0.16	(1.48)	(1.32)	(0.14)	(0.12)	—	(0.26)	8.04	(12.97)⁵	2.29⁸	0.76⁸	2.37	895	26
08-31-2008	10.78	0.15	(1.10)	(0.95)	(0.10)	(0.11)	—	(0.21)	9.62	(8.98)⁵	3.97⁸	0.78^8,10	1.48	825	10
08-31-2007¹¹	10.00	0.07	0.88	0.95	(0.06)	(0.11)	—	(0.17)	10.78	9.59^5,6,12	15.58^7,13	0.80^7,13	0.80⁷	126	7

CLASS R4

02-28-2011⁴	8.51	0.15	1.55	1.70	(0.17)	(0.08)	—	(0.25)	9.96	20.09^5,6	8.23^7,8	0.38^7,8	3.07⁷	176	15
08-31-2010	8.05	0.16	0.50	0.66	(0.17)	(0.03)	—	(0.20)	8.51	8.11⁵	5.26⁸	0.39^8,9	1.90	151	23
08-31-2009	9.64	0.16	(1.46)	(1.30)	(0.17)	(0.12)	—	(0.29)	8.05	(12.68)⁵	7.25⁸	0.45⁸	2.24	255	26
08-31-2008	10.80	0.16	(1.08)	(0.92)	(0.13)	(0.11)	—	(0.24)	9.64	(8.72)⁵	13.87⁸	0.48^8,10	1.50	138	10
08-31-2007¹¹	10.00	0.10	0.88	0.98	(0.07)	(0.11)	—	(0.18)	10.80	9.85^5,6,12	15.75^7,13	0.52^7,13	1.09⁷	110	7


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	45

Financial highlights

Continued


Lifecycle 2020 Portfolio continued
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss) on	invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS R5

02-28-2011⁴	8.53	0.18	1.55	1.73	(0.20)	(0.08)	—	(0.28)	9.98	20.37^5,6	0.75^7,8	0.09^7,8	3.71⁷	3,259	15
08-31-2010	8.06	0.21	0.48	0.69	(0.19)	(0.03)	—	(0.22)	8.53	8.50⁵	0.93⁸	0.09^8,9	2.44	668	23
08-31-2009	9.66	0.20	(1.48)	(1.28)	(0.20)	(0.12)	—	(0.32)	8.06	(12.38)⁵	1.96⁸	0.16⁸	2.92	759	26
08-31-2008	10.82	0.19	(1.08)	(0.89)	(0.16)	(0.11)	—	(0.27)	9.66	(8.47)⁵	6.46⁸	0.21^8,10	1.83	758	10
08-31-2007¹¹	10.00	0.10	0.90	1.00	(0.07)	(0.11)	—	(0.18)	10.82	10.11^5,6,12	8.22^7,13	0.23^7,13	1.08⁷	272	7

CLASS 1

02-28-2011⁴	8.53	0.15	1.56	1.71	(0.19)	(0.08)	—	(0.27)	9.97	20.20^5,6	0.14^7,8	0.13^7,8	3.26⁷	812,654	15
08-31-2010	8.06	0.20	0.49	0.69	(0.19)	(0.03)	—	(0.22)	8.53	8.45⁵	0.14⁸	0.14⁸	2.30	631,670	23
08-31-2009	9.67	0.19	(1.48)	(1.29)	(0.20)	(0.12)	—	(0.32)	8.06	(12.38)⁵	0.16⁸	0.16⁸	2.67	420,276	26
08-31-2008	10.82	0.15	(1.03)	(0.88)	(0.16)	(0.11)	—	(0.27)	9.67	(8.38)⁵	0.17⁸	0.17^8,10	1.49	276,252	10
08-31-2007¹¹	10.00	0.07	0.93	1.00	(0.07)	(0.11)	—	(0.18)	10.82	10.22^5,6,12	0.32^7,13	0.20^7,13	0.78⁷	64,901	7

¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The
range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.14%, 0.48%–1.17%, 0.49%–1.25% and 0.49%–1.13% for the peri-
ods ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes the impact of expense recapture for the following period ended 8-31-10: 0.02%, less than 0.005%, 0.01%, 0.28% and 0.02% of average net assets for
Class A, Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹⁰Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹¹The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹²The Adviser made a payment to the Portfolio of $2,881. Excluding this payment, total returns would have been 9.48% for Class R1 shares. There was no effect to the
total returns for Class A, Class R3, Class R4, Class R5 and Class 1.
¹³Does not include expenses of the underlying affiliated funds in which the Portfolio invests.


Lifecycle 2015 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%) (loss)	(%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.66	0.15	1.31	1.46	(0.20)	(0.07)	—	(0.27)	9.85	17.00^5,6	0.69^7,8	0.59^7,8	3.25⁷	18,754	19
08-31-2010	8.17	0.22	0.50	0.72	(0.19)	(0.04)	—	(0.23)	8.66	8.82⁵	0.64⁸	0.59^8,12	2.49	13,255	26
08-31-2009	9.66	0.21	(1.36)	(1.15)	(0.21)	(0.13)	—	(0.34)	8.17	(10.91)⁵	1.03⁸	0.61⁸	2.96	8,596	28
08-31-2008	10.65	0.18	(0.92)	(0.74)	(0.14)	(0.11)	—	(0.25)	9.66	(7.16)⁵	1.43⁸	0.63^8,9	1.74	2,776	10
08-31-2007¹⁰	10.00	0.07	0.76	0.83	(0.09)	(0.09)	—	(0.18)	10.65	8.37^5,6	2.19^7,11	0.63^7,11	0.86⁷	836	9


46	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Financial highlights

Continued


Lifecycle 2015 Portfolio continued
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS R1

02-28-2011⁴	8.64	0.15	1.30	1.45	(0.19)	(0.07)	—	(0.26)	9.83	16.88^5,6	1.78^7,8	0.74^7,8	3.16⁷	1,599	19
08-31-2010	8.15	0.20	0.51	0.71	(0.18)	(0.04)	—	(0.22)	8.64	8.69⁵	1.36⁸	0.74^8,12	2.32	1,267	26
08-31-2009	9.62	0.20	(1.35)	(1.15)	(0.19)	(0.13)	—	(0.32)	8.15	(11.15)⁵	5.13⁸	0.83⁸	2.79	762	28
08-31-2008	10.63	0.16	(0.93)	(0.77)	(0.13)	(0.11)	—	(0.24)	9.62	(7.41)⁵	8.84⁸	0.86^8,9	1.61	207	10
08-31-2007¹⁰	10.00	0.11	0.69	0.80	(0.08)	(0.09)	—	(0.17)	10.63	8.08^5,6,13	16.47^7,11	0.87^7,11	1.21⁷	108	9

CLASS R3

02-28-2011⁴	8.64	0.15	1.30	1.45	(0.19)	(0.07)	—	(0.26)	9.83	16.93^5,6	1.35^7,8	0.69^7,8	3.27⁷	2,429	19
08-31-2010	8.15	0.21	0.50	0.71	(0.18)	(0.04)	—	(0.22)	8.64	8.74⁵	1.29⁸	0.69^8,12	2.40	1,780	26
08-31-2009	9.63	0.20	(1.36)	(1.16)	(0.19)	(0.13)	—	(0.32)	8.15	(11.12)⁵	2.59⁸	0.77⁸	2.81	763	28
08-31-2008	10.63	0.15	(0.91)	(0.76)	(0.13)	(0.11)	—	(0.24)	9.63	(7.32)⁵	6.20⁸	0.81^8,9	1.48	693	10
08-31-2007¹⁰	10.00	0.11	0.69	0.80	(0.08)	(0.09)	—	(0.17)	10.63	8.10^5,6	16.38^7,11	0.80^7,11	1.28⁷	108	9

CLASS R4

02-28-2011⁴	8.65	0.16	1.31	1.47	(0.22)	(0.07)	—	(0.29)	9.83	17.12^5,6	17.39^7,8	0.39^7,8	3.49⁷	82	19
08-31-2010	8.16	0.24	0.50	0.74	(0.21)	(0.04)	—	(0.25)	8.65	9.01⁵	7.11⁸	0.39^8,12	2.74	64	26
08-31-2009	9.65	0.21	(1.35)	(1.14)	(0.22)	(0.13)	—	(0.35)	8.16	(10.83)⁵	5.34⁸	0.46⁸	3.00	355	28
08-31-2008	10.65	0.21	(0.94)	(0.73)	(0.16)	(0.11)	—	(0.27)	9.65	(7.06)⁵	12.64⁸	0.50^8,9	2.02	172	10
08-31-2007¹⁰	10.00	0.14	0.69	0.83	(0.09)	(0.09)	—	(0.18)	10.65	8.35^5,6	16.08^7,11	0.52^7,11	1.56⁷	108	9

CLASS R5

02-28-2011⁴	8.67	0.17	1.32	1.49	(0.25)	(0.07)	—	(0.32)	9.84	17.29^5,6	1.49^7,8	0.09^7,8	3.61⁷	1,590	19
08-31-2010	8.17	0.25	0.52	0.77	(0.23)	(0.04)	—	(0.27)	8.67	9.41⁵	3.42⁸	0.09^8,12	2.81	273	26
08-31-2009	9.67	0.36	(1.48)	(1.12)	(0.25)	(0.13)	—	(0.38)	8.17	(10.53)⁵	5.04⁸	0.20⁸	4.98	103	28
08-31-2008	10.67	0.18	(0.88)	(0.70)	(0.19)	(0.11)	—	(0.30)	9.67	(6.81)⁵	5.09⁸	0.22^8,9	1.81	464	10
08-31-2007¹⁰	10.00	0.16	0.69	0.85	(0.09)	(0.09)	—	(0.18)	10.67	8.61^5,6	15.77^7,11	0.23^7,11	1.84⁷	109	9

CLASS 1

02-28-2011⁴	8.67	0.18	1.30	1.48	(0.24)	(0.07)	—	(0.31)	9.84	17.24⁶	0.14^7,8	0.14^7,8	3.71⁷	548,800	19
08-31-2010	8.17	0.25	0.52	0.77	(0.23)	(0.04)	—	(0.27)	8.67	9.36⁵	0.14⁸	0.14⁸	2.88	439,994	26
08-31-2009	9.68	0.25	(1.37)	(1.12)	(0.26)	(0.13)	—	(0.39)	8.17	(10.54)⁵	0.16⁸	0.16⁸	3.51	305,171	28
08-31-2008	10.68	0.21	(0.91)	(0.70)	(0.19)	(0.11)	—	(0.30)	9.68	(6.80)⁵	0.18⁸	0.18⁸	2.12	216,679	10
08-31-2007¹⁰	10.00	0.10	0.76	0.86	(0.09)	(0.09)	—	(0.18)	10.68	8.72^5,6	0.36^7,11	0.20^7,11	1.19⁷	55,723	9

¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio.
The range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.14%, 0.48%–1.17%, 0.49%–1.18% and 0.49%–1.13% for the
periods ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹⁰The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹¹Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
¹²Includes the impact of expense recapture for the following period ended 8-31-10: 0.02%, 0.03%, 0.02%, 0.34% and 0.17% of average net assets for Class A,
Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹³The Adviser made a payment to the Portfolio of $6,640. Excluding this payment, total return would have been 7.98% for Class R1. There was no effect to the total
returns for Class A, Class R3, Class R4, Class R5 and Class 1.


See notes to financial statements	Semiannual report \| Lifecycle Portfolios	47

Financial highlights

Continued


Lifecycle 2010 Portfolio
Per share operating performance for a share outstanding throughout each period											Ratios and supplemental data

		Income (loss) from
		investment operations				Less distributions					Ratios to average net assets


			Net								Expenses	Expenses
			realized	Total							before	including		Net
	Net asset	Net	and	from	From net						reduc-	reduc-		assets,
	value,	invest-	unrealized	invest-	invest-				Net asset		tions and	tions and	Net	end of
	beginning	ment in-	gain (loss)	ment	ment	From net	From	Total value,	end	Total	amounts	amounts	investment	period (in	Portfolio
	of period	come (loss)	on invest-	operations	income	realized	capital	distribu-	of period	return	recaptured	recaptured	income	thousands)	turnover
Period ended	($)	($)^1,2	ments ($)	($)	($)	gain ($)	paid-in ($)	tions ($)	($)	(%)³	(%)	(%)	(loss) (%)¹	($)	(%)

CLASS A

02-28-2011⁴	8.98	0.17	1.11	1.28	(0.26)	(0.06)	—	(0.32)	9.94	14.35^5,6	0.72^7,8	0.59^7,8	3.44⁷	14,058	31
08-31-2010	8.38	0.26	0.54	0.80	(0.17)	(0.03)	—	(0.20)	8.98	9.60⁵	0.63⁸	0.60^8,9	2.89	9,538	48
08-31-2009	9.69	0.28	(1.20)	(0.92)	(0.26)	(0.13)	—	(0.39)	8.38	(8.53)⁵	1.22⁸	0.64⁸	3.75	5,637	31
08-31-2008	10.54	0.23	(0.83)	(0.60)	(0.16)	(0.09)	—	(0.25)	9.69	(5.87)⁵	1.61⁸	0.65^8,10	2.28	2,050	14
08-31-2007¹¹	10.00	0.12	0.57	0.69	(0.09)	(0.06)	—	(0.15)	10.54	6.99^5,6	2.45^7,12	0.63^7,12	1.42⁷	665	17

CLASS R1

02-28-2011⁴	8.95	0.18	1.09	1.27	(0.24)	(0.06)	—	(0.30)	9.92	14.35^5,6	4.34^7,8	0.74^7,8	3.83⁷	466	31
08-31-2010	8.36	0.26	0.52	0.78	(0.16)	(0.03)	—	(0.19)	8.95	9.36⁵	1.80⁸	0.75^8,9	2.95	411	48
08-31-2009	9.66	0.25	(1.19)	(0.94)	(0.23)	(0.13)	—	(0.36)	8.36	(8.82)⁵	9.94⁸	0.87⁸	3.39	286	31
08-31-2008	10.52	0.23	(0.85)	(0.62)	(0.15)	(0.09)	—	(0.24)	9.66	(6.02)⁵	14.92⁸	0.87^8,10	2.30	126	14
08-31-2007¹¹	10.00	0.15	0.52	0.67	(0.09)	(0.06)	—	(0.15)	10.52	6.70^5,6	16.89^7,12	0.87^7,12	1.70⁷	107	17

CLASS R3

02-28-2011⁴	8.96	0.17	1.11	1.28	(0.25)	(0.06)	—	(0.31)	9.93	14.39^5,6	1.57^7,8	0.69^7,8	3.51⁷	1,738	31
08-31-2010	8.37	0.25	0.54	0.79	(0.17)	(0.03)	—	(0.20)	8.96	9.39⁵	1.32⁸	0.70^8,9	2.79	1,441	48
08-31-2009	9.67	0.26	(1.19)	(0.93)	(0.24)	(0.13)	—	(0.37)	8.37	(8.69)⁵	2.34⁸	0.79⁸	3.48	1,260	31
08-31-2008	10.53	0.26	(0.88)	(0.62)	(0.15)	(0.09)	—	(0.24)	9.67	(6.02)⁵	3.95⁸	0.82^8,10	2.64	795	14
08-31-2007¹¹	10.00	0.16	0.52	0.68	(0.09)	(0.06)	—	(0.15)	10.53	6.82^5,6,13	16.81^7,12	0.80^7,12	1.77⁷	107	17

CLASS R4

02-28-2011⁴	8.98	0.18	1.12	1.30	(0.28)	(0.06)	—	(0.34)	9.94	14.57^5,6	16.65^7,8	0.39^7,8	3.79⁷	83	31
08-31-2010	8.38	0.30	0.52	0.82	(0.19)	(0.03)	—	(0.22)	8.98	9.79⁵	8.52⁸	0.39^8,9	3.31	71	48
08-31-2009	9.69	0.29	(1.20)	(0.91)	(0.27)	(0.13)	—	(0.40)	8.38	(8.40)⁵	11.93⁸	0.49⁸	3.82	116	31
08-31-2008	10.55	0.26	(0.85)	(0.59)	(0.18)	(0.09)	—	(0.27)	9.69	(5.76)⁵	12.38⁸	0.53^8,10	2.56	205	14
08-31-2007¹¹	10.00	0.18	0.52	0.70	(0.09)	(0.06)	—	(0.15)	10.55	7.08^5,6,13	16.51^7,12	0.52^7,12	2.06⁷	107	17

CLASS R5

02-28-2011⁴	8.99	0.18	1.12	1.30	(0.30)	(0.06)	—	(0.36)	9.93	14.64^5,6	0.96^7,8	0.09^7,8	3.74⁷	2,953	31
08-31-2010	8.39	0.32	0.52	0.84	(0.21)	(0.03)	—	(0.24)	8.99	10.08⁵	3.13⁸	0.09^8,9	3.54	261	48
08-31-2009	9.71	0.31	(1.20)	(0.89)	(0.30)	(0.13)	—	(0.43)	8.39	(8.11)⁵	5.86⁸	0.20⁸	4.12	207	31
08-31-2008	10.57	0.24	(0.80)	(0.56)	(0.21)	(0.09)	—	(0.30)	9.71	(5.51)⁵	10.30⁸	0.25^8,10	2.41	498	14
08-31-2007¹¹	10.00	0.21	0.52	0.73	(0.10)	(0.06)	—	(0.16)	10.57	7.33^5,6,13	16.20^7,12	0.23^7,12	2.34⁷	107	17

CLASS 1

02-28-2011⁴	8.99	0.20	1.11	1.31	(0.30)	(0.06)	—	(0.36)	9.94	14.71⁶	0.14^7,8	0.14^7,8	4.06⁷	477,742	31
08-31-2010	8.39	0.31	0.53	0.84	(0.21)	(0.03)	—	(0.24)	8.99	10.04⁵	0.15⁸	0.15⁸	3.45	447,295	48
08-31-2009	9.72	0.30	(1.20)	(0.90)	(0.30)	(0.13)	—	(0.43)	8.39	(8.15)⁵	0.19⁸	0.19⁸	4.10	151,035	31
08-31-2008	10.57	0.26	(0.81)	(0.55)	(0.21)	(0.09)	—	(0.30)	9.72	(5.41)⁵	0.21⁸	0.20⁸	2.61	121,337	14
08-31-2007¹¹	10.00	0.16	0.57	0.73	(0.10)	(0.06)	—	(0.16)	10.57	7.34^5,6	0.56^7,12	0.20^7,12	1.78⁷	25,428	17

¹Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying funds in which the Portfolio invests.
²Based on the average daily shares outstanding.
³Does not reflect the effect of sales charges, if any.
⁴Unaudited.
⁵Total returns would have been lower had certain expenses not been reduced during the periods shown.
⁶Not annualized.
⁷Annualized.
⁸Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The
range of expense ratios of the underlying funds held by the Portfolio was as follows: 0.48%–1.11%, 0.48%–1.13%, 0.49%–1.09% and 0.49%–1.13% for the periods
ended 2-28-11, 8-31-10, 8-31-09 and 8-31-08, respectively.
⁹Includes the impact of expense recapture for the following period ended 8-31-10: 0.02%, 0.14%, 0.02%, 0.46% and 0.16% of average net assets for Class A,
Class R1, Class R3, Class R4 and Class R5 shares, respectively. See Note 4.
¹⁰Includes transfer agent fee earned credits of less than 0.01% of average net assets.
¹¹The inception date for Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares is 10-30-06.
¹²Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
¹³The Adviser made a payment to the Portfolio of $4,286. Excluding this payment, total returns would have been 6.72%, 6.97% and 7.23% for Class R3, Class R4 and
Class R5, respectively. There was no effect to the total returns for Class A, Class R1 and Class 1.


48	Lifecycle Portfolios \| Semiannual report	See notes to financial statements

Notes to financial statements

(Unaudited)

Note 1 — Organization

John Hancock Funds II (the Trust) is an open-end management investment company organized as a Massachusetts business trust. The Trust is a series company which means it has several funds, each with a stated investment objective that it pursues through separate investment policies. The Trust currently offers multiple investment funds, eight of which (collectively, Lifecycle Portfolios or the Portfolios, and individually the Portfolio) are presented in this report. The Lifecycle Portfolios are series of the Trust and operate as “funds of funds” that invest in shares of underlying funds of the Trust, John Hancock Funds III (JHF III) and also in other affiliated funds of the John Hancock funds complex. Each Portfolio is diversified for purposes of the Investment Company Act of 1940, as amended (1940 Act).

The Portfolios may offer multiple classes of shares. The shares currently offered by the Trust are detailed in the Statements of Assets and Liabilities. Class A shares are open to all investors. Class R1, Class R3, Class R4 and Class R5 shares are available only to certain retirement plans. Class 1 shares are offered only to certain affiliates of Manulife Financial Corporation (MFC). Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.

The accounting policies of the underlying funds of the Portfolios are outlined in the underlying funds’ shareholder reports, available without charge by calling 1-800-344-1029, at jhfunds.com and on the Securities and Exchange Commission (SEC) Web site at www.sec.gov or at the SEC’s public reference room in Washington, D.C. The underlying funds are not covered by this report.

Note 2 — Significant accounting policies

Security valuation. Investments are stated at value as of the close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. The Portfolios use a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the Portfolios’ own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 28, 2011, all investments for the Portfolios are categorized as Level 1 under the hierarchy discussed above. Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. During the six months ended February 28, 2011, there were no significant transfers in or out of Level 1 assets.

Investments by the Portfolios in underlying affiliated funds and/or other investment companies are valued at their respective net asset values each business day.

Line of credit. The Portfolios may borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the custodian agreement, the custodian may loan money to a Portfolio to make properly authorized payments. The Portfolios are obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian has a lien, security interest or security entitlement in any Portfolio property that is not segregated, to the maximum extent permitted by law for any overdraft.

In addition, the Portfolios and other affiliated funds have entered into an agreement with State Street Bank and Trust Company (SSBT) which enables them to participate in a $200 million unsecured committed line of credit. A commitment fee, 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 pro


	Semiannual report \| Lifecycle Portfolios	49

rata basis and is reflected in other expenses on the Statements of Operations. For the six months ended February 28, 2011, the Portfolios had no borrowings under the line of credit.

Effective March 30, 2011, the line of credit with SSBT expired and a similar arrangement was established with Citibank N.A.

Expenses. The majority of expenses are directly attributable to an individual portfolio. Expenses that are not readily attributable to a specific portfolio are allocated among all portfolios in an equitable manner, taking into consideration, among other things, the nature and type of expense and the portfolio’s relative assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the Portfolio level and allocated daily to each class of shares based on the net asset value of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, are calculated daily for each class, based on the net asset value and the specific expense rates applicable to each class.

Federal income taxes. The Portfolios intend to continue to qualify as regulated investment companies 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 provisions are required.

For federal income tax purposes, the Portfolios had capital loss carryforwards available to offset future net realized capital gains. The following table details the capital loss carryforwards available as of August 31, 2010:


Capital Loss Carryforwards
Expiring at August 31

Portfolio	2017	2018

Lifecycle 2045	$699,374	$4,989,470
Lifecycle 2040	825,392	5,318,488
Lifecycle 2035	1,230,606	8,731,058
Lifecycle 2030	1,619,728	14,237,264
Lifecycle 2025	1,882,836	22,990,976
Lifecycle 2020	1,054,048	23,229,183
Lifecycle 2015	562,494	22,163,126
Lifecycle 2010	176,244	10,481,813

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Portfolios will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

As of August 31, 2010, the Portfolios had no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. The Portfolios’ federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.

The cost of investments owned on February 28, 2011, including short-term investments, for federal income tax purposes, was as follows:


		Unrealized	Unrealized	Net Unrealized
Portfolio	Aggregate Cost	Appreciation	Depreciation	Appreciation

Lifecycle 2045	$374,909,997	$77,599,309	($77,448)	$77,521,861
Lifecycle 2040	372,495,879	75,037,928	(76,045)	74,961,883
Lifecycle 2035	496,655,514	98,138,015	(92,596)	98,045,419
Lifecycle 2030	638,490,261	121,161,650	(220,841)	120,940,809
Lifecycle 2025	743,786,641	131,443,055	(137,436)	131,305,619
Lifecycle 2020	729,387,580	118,993,351	(209,303)	118,784,048
Lifecycle 2015	500,778,390	72,576,650	(65,996)	72,510,654
Lifecycle 2010	447,121,689	50,036,325	(78,828)	49,957,497

Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The Portfolios generally declare and pay dividends and capital gain distributions, if any, at least annually.

Distributions paid by the Portfolios 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. Short term gains from underlying funds are treated as ordinary income for tax purposes.


50	Lifecycle Portfolios \| Semiannual report

Note 3 — Guarantees and indemnifications

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

Note 4 — Fees and transactions with affiliates

John Hancock Investment Management Services, LLC (the Adviser) serves as investment adviser for the Trust. John Hancock Funds, LLC (the Distributor), an affiliate of the Adviser, serves as principal underwriter of the Trust. The Adviser and the Distributor are indirect wholly owned subsidiaries of MFC.

Management fee. The Portfolios pay the Adviser a management fee for its services to the Portfolios. The management fee has two components: (a) a fee on net assets invested in affiliated funds (Affiliated Fund Assets) and (b) a fee on net assets not invested in affiliated funds (Other Assets). Affiliated funds are any funds of the Trust, JHF III and John Hancock Trust (JHT), excluding John Hancock Money Market Trust B, John Hancock 500 Index Trust B, John Hancock International Equity Index Trust B and John Hancock Total Bond Market Trust B. The fee on assets invested in Affiliated Fund Assets is stated as an annual percentage of the current value of the aggregate net assets of all the Portfolios and is equivalent to the sum of: (a) 0.06% of the first $7.5 billion of aggregate net assets and (b) 0.05% of the excess over $7.5 billion of aggregate net assets. The fee on Other Assets is stated as an annual percentage of the current value of the aggregate net assets of all the Portfolios and is equivalent to the sum of: (a) 0.51% of the first $7.5 billion of aggregate net assets and (b) 0.50% of the excess over $7.5 billion of aggregate net assets and is applied to the Other Assets of the Portfolios.

John Hancock Asset Management a division of Manulife Asset Management (North America) Limited (formerly MFC Global Investment Management (U.S.A.) Limited), an indirect owned subsidiary of MFC and an affiliate of the Adviser, John Hancock Asset Management a division of Manulife Asset Management (US) LLC (formerly MFC Global Investment Management (U.S.) LLC), an indirect owned subsidiary of MFC and an affiliate of the Adviser and QS Investors, LLC act as subadvisers to the Lifecycle Portfolios. The Portfolios are not responsible for the payment of subadvisory fees. The investment management fees incurred for the six months ended February 28, 2011 were equivalent to an annual effective rate of 0.06% each Portfolio’s average daily net assets.

Expense reimbursements. The Adviser voluntarily agreed to waive a portion of its management fee if certain expenses of the Lifecycle Portfolios exceed 0.10% of average net assets. Expenses excluded from this waiver are taxes, brokerage commissions, interest, litigation and indemnification expenses, advisory fees, Rule 12b-1 fees, printing and postage, transfer agent fees, state registration fees, service fees, underlying fund expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolios’ business. This expense reduction will continue in effect until terminated by the Adviser.

The Adviser has voluntarily agreed to waive its advisory fee or reimburse the Portfolios so that the aggregate advisory fee retained by the Adviser with respect to both the Portfolios and the underlying investments does not exceed 0.51% of the Lifecycle Portfolios’ first $7.5 billion of average daily net assets and 0.50% of the Portfolios’ average daily net assets in excess of $7.5 billion. This voluntary waiver may terminate at any time.

The Adviser has contractually agreed to waive fees and/or reimburse certain class specific expenses, including 12b-1 fees, transfer agent fees, service fees, state registration fees, and printing and postage for Class A, Class R1, Class R3, Class R4 and Class R5, to the extent that the above expenses for each class exceed 0.50%, 0.65%, 0.60% (0.55% for Lifecycle 2045 and Lifecycle 2040), 0.30% and 0.00%, respectively, of the average daily net assets attributable to the classes. This expense fee waiver and/or reimbursement will continue in effect until at least December 31, 2011.

Prior to December 31, 2010, the Adviser waived class specific fees over 0.05% on Class 1.

For the six months ended February 28, 2011, the expense reductions related to these plans amounted to the following and are reflected as a reduction of total expenses in the Statements of Operations:


			Expense Reimbursement by Class


Portfolio	Class A	Class R1	Class R3	Class R4	Class R5	Class 1	Total

Lifecycle 2045	$7,896	$7,147	$6,764	$6,404	$6,494	$6,758	$41,463
Lifecycle 2040	7,909	7,517	7,539	6,413	6,669	6,771	42,818
Lifecycle 2035	7,841	7,863	6,650	6,475	6,627	8,998	44,454
Lifecycle 2030	7,979	8,124	6,758	6,324	7,057	10,921	47,163
Lifecycle 2025	7,765	8,000	7,315	6,597	7,749	11,023	48,449
Lifecycle 2020	7,890	8,170	7,223	6,364	7,608	8,283	45,538
Lifecycle 2015	7,748	7,586	7,364	6,279	6,751	—	35,728
Lifecycle 2010	7,511	6,809	7,110	6,322	7,218	—	34,970


	Semiannual report \| Lifecycle Portfolios	51

Expense recapture. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursements or waivers originally occurred. The table below outlines the amounts recovered during the six months ended February 28, 2011 and the amount of waived or reimbursed expenses subject to potential recovery and the respective expiration dates. Certain reimbursements or waivers are not subject to recapture.


	Amounts eligible for	Amounts eligible for	Amounts eligible for	Amount recovered
	recovery through	recovery through	recovery through	during the six months
Portfolio	August 1, 2012	August 1, 2013	February 1, 2014	ended February 28, 2011

Lifecycle 2045	$39,472	$38,266	$34,531	—
Lifecycle 2040	40,457	37,444	35,829	—
Lifecycle 2035	39,028	36,422	35,171	—
Lifecycle 2030	40,527	38,713	35,837	—
Lifecycle 2025	38,568	38,062	37,052	—
Lifecycle 2020	36,400	39,458	36,913	—
Lifecycle 2015	36,659	35,135	35,728	—
Lifecycle 2010	34,858	31,092	34,970	—

Accounting and legal services. Pursuant to the service agreement, the Portfolios reimburse the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Portfolios, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. The accounting and legal services fees incurred for the six months ended February 28, 2011 amounted to an annual rate of 0.01% of each Portfolio’s average daily net assets.

Distribution and service plans. The Trust has a distribution agreement with the Distributor. The Portfolios have adopted distribution and service plans with respect Class A, Class R1, Class R3, Class R4 and Class 1 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the Portfolios. In addition, under a service plan for Class R1, Class R3, Class R4 and Class R5 shares, the Portfolios pay for certain other services. The Portfolios may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the Portfolios’ shares:


Class	12b-1 Fee	Service Fee

A	0.30%	—
R1	0.50%	0.25%
R3	0.50%	0.15%
R4	0.25%	0.10%
R5	—	0.05%
1	0.05%	—

Sales charges. Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. The following summarizes the net up-front sales charges received by the Distributor during the six months ended February 28, 2011:


	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle
	2045	2040	2035	2030	2025	2020	2015	2010

Net sales charges	$16,202	$11,135	$12,622	$24,343	$13,557	$47,503	$10,550	$6,471
Retained for printing
prospectuses, advertising
and sales literature	2,232	1,416	1,837	3,442	1,969	7,919	1,476	854
Sales commission to
unrelated broker-dealers	12,974	9,436	10,761	20,774	11,475	39,516	9,050	5,617
Sales commission to
affiliated sales personnel	996	283	24	127	113	68	24	—

Transfer agent fees. The Portfolios have a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services or Transfer Agent), an affiliate of the Adviser. Class 1 shares do not pay transfer agent fees. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. The Signature Services Cost includes a component of allocated John Hancock corporate overhead for providing transfer agent services to the Portfolios and to all other John Hancock affiliated funds. It also includes out-of-pocket expenses that are comprised of payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain revenues that Signature Services receive in connection with the service they provide to the funds. Signature Services Cost is calculated monthly and allocated, as applicable, to four categories of share classes: Institutional Share Classes, Retirement Share Classes, Municipal Bond Classes and all other Retail Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.


52	Lifecycle Portfolios \| Semiannual report


Class level expenses. Class level expenses for the six months ended February 28, 2011 were:

		Distribution and	Transfer	State registration	Printing and
Portfolio	Class	service fees	agent fees	fees	postage


Lifecycle 2045	A	$11,352	$6,807	$7,651	$872
	R1	3,313	160	6,451	80
	R3	2,120	119	6,249	58
	R4	534	57	6,249	33
	R5	107	77	6,283	20
	1	95,776	—	—	—
	Total	$113,202	$7,220	$32,883	$1,063


Lifecycle 2040	A	$12,541	$7,512	$7,712	$896
	R1	4,567	221	6,526	140
	R3	5,770	332	6,325	132
	R4	318	34	6,325	13
	R5	169	122	6,325	42
	1	94,940	—	—	—
	Total	$118,305	$8,221	$33,213	$1,223


Lifecycle 2035	A	$16,862	$10,115	$7,673	$1,095
	R1	6,699	324	6,451	163
	R3	4,156	249	6,251	106
	R4	1,220	140	6,250	16
	R5	198	141	6,250	22
	1	126,206	—	—	—
	Total	$155,341	$10,969	$32,875	$1,402


Lifecycle 2030	A	$27,377	$16,415	$7,866	$1,640
	R1	7,959	385	6,450	192
	R3	5,662	342	6,249	145
	R4	259	27	6,249	9
	R5	387	277	6,309	58
	1	161,863	—	—	—
	Total	$203,507	$17,446	$33,123	$2,044


Lifecycle 2025	A	$26,948	$16,160	$7,700	$1,607
	R1	7,283	352	6,464	193
	R3	7,271	412	6,264	172
	R4	1,333	146	6,264	61
	R5	620	443	6,586	64
	1	187,765	—	—	—
	Total	$231,220	$17,513	$33,278	$2,097


Lifecycle 2020	A	$33,530	$20,095	$7,865	$2,031
	R1	8,003	386	6,496	224
	R3	10,070	603	6,280	235
	R4	284	30	6,279	13
	R5	570	405	6,527	80
	1	183,578	—	—	—
	Total	$236,035	$21,519	$33,447	$2,583


Lifecycle 2015	A	$23,726	$14,229	$7,910	$1,426
	R1	5,461	264	6,448	146
	R3	7,220	403	6,247	159
	R4	128	13	6,247	2
	R5	240	171	6,315	24
	1	125,254	—	—	—
	Total	$162,029	$15,080	$33,167	$1,757


Lifecycle 2010	A	$16,896	$10,117	$7,692	$965
	R1	1,418	68	6,491	61
	R3	5,222	291	6,293	124
	R4	133	14	6,290	2
	R5	414	294	6,507	3
	1	119,750	—	—	—
	Total	$143,833	$10,784	$33,273	$1,155


	Semiannual report \| Lifecycle Portfolios	53

Note 5 — Portfolio share transactions

Transactions in Portfolio shares for the six months ended February 28, 2011 and year ended August 31, 2010 were as follows:


Lifecycle 2045 Portfolio		��
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	304,516	$2,868,311	615,309	$5,200,175
Distributions reinvested	11,744	112,738	6,800	57,727
Repurchased	(162,253)	(1,515,435)	(328,646)	(2,768,708)

Net increase	154,007	$1,465,614	293,463	$2,489,194

Class R1 shares

Sold	22,962	$217,198	47,140	$399,030
Distributions reinvested	1,071	10,273	851	7,224
Repurchased	(12,282)	(117,649)	(38,444)	(322,049)

Net increase	11,751	$109,822	9,547	$84,205

Class R3 shares

Sold	9,740	$92,889	48,669	$410,489
Distributions reinvested	987	9,464	575	4,880
Repurchased	(8,147)	(76,179)	(12,379)	(105,218)

Net increase	2,580	$26,174	36,865	$310,151

Class R4 shares

Sold	9,644	$92,508	34,149	$285,691
Distributions reinvested	563	5,412	232	1,972
Repurchased	(8,194)	(75,677)	(41,238)	(350,111)

Net increase (decrease)	2,013	$22,243	(6,857)	($62,448)

Class R5 shares

Sold	39,845	$376,349	15,636	$132,820
Distributions reinvested	995	9,583	378	3,221
Repurchased	(5,069)	(46,645)	(17,088)	(145,151)

Net increase (decrease)	35,771	$339,287	(1,074)	($9,110)

Class 1 shares

Sold	5,428,102	$51,277,479	13,333,976	$112,872,892
Distributions reinvested	776,982	7,474,569	503,104	4,281,416
Repurchased	(468,830)	(4,509,515)	(243,726)	(2,072,822)

Net increase	5,736,254	$54,242,533	13,593,354	$115,081,486

Net increase	5,942,376	$56,205,673	13,925,298	$117,893,478


Lifecycle 2040 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	317,890	$3,025,597	553,478	$4,696,018
Distributions reinvested	13,043	125,209	9,078	77,167
Repurchased	(176,550)	(1,652,541)	(290,352)	(2,444,233)

Net increase	154,383	$1,498,265	272,204	$2,328,952

Class R1 shares

Sold	13,899	$131,294	84,668	$710,905
Distributions reinvested	1,426	13,685	1,204	10,222
Repurchased	(44,310)	(415,603)	(32,932)	(280,281)

Net increase (decrease)	(28,985)	($270,624)	52,940	$440,846

Class R3 shares

Sold	47,654	$457,429	64,175	$548,337
Distributions reinvested	2,835	27,191	2,197	18,626
Repurchased	(25,480)	(238,070)	(39,426)	(333,861)

Net increase	25,009	$246,550	26,946	$233,102

Class R4 shares

Sold	2,890	$27,243	19,356	$161,950
Distributions reinvested	321	3,086	79	671
Repurchased	(2,477)	(24,232)	(32,682)	(278,122)

Net increase (decrease)	734	$6,097	(13,247)	($115,501)


54	Lifecycle Portfolios \| Semiannual report


Lifecycle 2040 Portfolio continued
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class R5 shares

Sold	36,822	$349,075	16,133	$136,205
Distributions reinvested	1,497	14,420	1,133	9,643
Repurchased	(6,441)	(61,298)	(33,309)	(284,648)

Net increase (decrease)	31,878	$302,197	(16,043)	($138,800)

Class 1 shares

Sold	4,412,861	$41,750,679	12,737,782	$107,770,765
Distributions reinvested	768,257	7,390,633	523,731	4,456,952
Repurchased	(378,213)	(3,629,770)	(358,387)	(3,060,727)

Net increase	4,802,905	$45,511,542	12,903,126	$109,166,990

Net increase	4,985,924	$47,294,027	13,225,926	$111,915,589


Lifecycle 2035 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	455,047	$4,323,610	682,001	$5,784,280
Distributions reinvested	17,912	172,676	11,496	97,951
Repurchased	(226,818)	(2,155,700)	(366,084)	(3,082,871)

Net increase	246,141	$2,340,586	327,413	$2,799,360

Class R1 shares

Sold	40,712	$377,697	115,678	$974,919
Distributions reinvested	1,932	18,603	1,208	10,295
Repurchased	(23,657)	(224,064)	(21,235)	(180,033)

Net increase	18,987	$172,236	95,651	$805,181

Class R3 shares

Sold	37,984	$372,087	103,934	$920,694
Distributions reinvested	2,063	19,883	1,046	8,911
Repurchased	(12,853)	(119,257)	(19,511)	(161,512)

Net increase	27,194	$272,713	85,469	$768,093

Class R4 shares

Sold	32,040	$305,424	64,666	$543,914
Distributions reinvested	1,408	13,598	234	2,000
Repurchased	(6,329)	(57,957)	(18,081)	(154,540)

Net increase	27,119	$261,065	46,819	$391,374

Class R5 shares

Sold	87,939	$823,580	21,746	$184,911
Distributions reinvested	2,003	19,347	767	6,551
Repurchased	(12,772)	(122,082)	(13,528)	(117,952)

Net increase	77,170	$720,845	8,985	$73,510

Class 1 shares

Sold	6,026,467	$57,193,190	15,642,153	$132,953,340
Distributions reinvested	1,020,307	9,856,170	718,013	6,131,834
Repurchased	(667,874)	(6,411,672)	(709,259)	(5,974,064)

Net increase	6,378,900	$60,637,688	15,650,907	$133,111,110

Net increase	6,775,511	$64,405,133	16,215,244	$137,948,628


	Semiannual report \| Lifecycle Portfolios	55


Lifecycle 2030 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	554,419	$5,227,314	1,039,354	$8,780,466
Distributions reinvested	30,161	288,034	19,967	169,321
Repurchased	(239,305)	(2,242,263)	(452,839)	(3,801,415)

Net increase	345,275	$3,273,085	606,482	$5,148,372

Class R1 shares

Sold	63,825	$606,394	138,227	$1,167,552
Distributions reinvested	2,689	25,602	2,364	19,999
Repurchased	(60,819)	(582,724)	(77,739)	(647,135)

Net increase	5,695	$49,272	62,852	$540,416

Class R3 shares

Sold	52,325	$503,884	144,501	$1,289,717
Distributions reinvested	3,003	28,621	1,244	10,528
Repurchased	(17,449)	(158,322)	(25,209)	(209,507)

Net increase	37,879	$374,183	120,536	$1,090,738

Class R4 shares

Sold	8,623	$82,556	24,351	$200,278
Distributions reinvested	276	2,629	125	1,052
Repurchased	(697)	(6,706)	(57,773)	(490,394)

Net increase (decrease)	8,202	$78,479	(33,297)	($289,064)

Class R5 shares

Sold	130,346	$1,213,209	18,700	$158,417
Distributions reinvested	4,023	38,299	2,112	17,844
Repurchased	(8,344)	(78,529)	(57,940)	(482,361)

Net increase (decrease)	126,025	$1,172,979	(37,128)	($306,100)

Class 1 shares

Sold	6,876,136	$64,673,405	20,763,933	$174,430,494
Distributions reinvested	1,408,297	13,392,900	960,006	8,112,052
Repurchased	(1,078,919)	(10,252,064)	(719,662)	(6,040,172)

Net increase	7,205,514	$67,814,241	21,004,277	$176,502,374

Net increase	7,728,590	$72,762,239	21,723,722	$182,686,736


Lifecycle 2025 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	551,810	$5,241,204	1,031,898	$8,786,408
Distributions reinvested	36,662	350,121	24,161	206,578
Repurchased	(220,745)	(2,097,235)	(499,056)	(4,254,465)

Net increase	367,727	$3,494,090	557,003	$4,738,521

Class R1 shares

Sold	43,993	$412,083	121,272	$1,013,931
Distributions reinvested	2,922	27,817	2,426	20,696
Repurchased	(47,993)	(441,176)	(61,427)	(514,339)

Net increase (decrease)	(1,078)	($1,276)	62,271	$520,288

Class R3 shares

Sold	53,008	$504,672	153,167	$1,372,116
Distributions reinvested	4,367	41,572	1,861	15,873
Repurchased	(21,632)	(198,224)	(96,177)	(806,005)

Net increase	35,743	$348,020	58,851	$581,984

Class R4 shares

Sold	23,696	$227,442	74,305	$623,508
Distributions reinvested	1,783	16,974	599	5,107
Repurchased	(1,886)	(16,935)	(28,067)	(240,673)

Net increase	23,593	$227,481	46,837	$387,942


56	Lifecycle Portfolios \| Semiannual report


Lifecycle 2025 Portfolio continued
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class R5 shares

Sold	288,974	$2,709,281	65,484	$562,114
Distributions reinvested	7,901	75,136	1,621	13,808
Repurchased	(37,533)	(353,701)	(9,738)	(84,129)

Net increase	259,342	$2,430,716	57,367	$491,793

Class 1 shares

Sold	8,036,083	$75,932,887	21,764,113	$185,303,827
Distributions reinvested	1,879,767	17,876,588	1,302,324	11,095,804
Repurchased	(1,280,223)	(12,116,630)	(1,253,189)	(10,651,589)

Net increase	8,635,627	$81,692,845	21,813,248	$185,748,042

Net increase	9,320,954	$88,191,876	22,595,577	$192,468,570


Lifecycle 2020 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	608,394	$5,854,753	1,106,502	$9,631,140
Distributions reinvested	55,990	536,381	36,016	313,343
Repurchased	(251,252)	(2,414,063)	(591,138)	(5,166,543)

Net increase	413,132	$3,977,071	551,380	$4,777,940

Class R1 shares

Sold	43,476	$413,419	149,086	$1,297,068
Distributions reinvested	4,330	41,438	4,412	38,336
Repurchased	(39,935)	(382,393)	(143,206)	(1,235,213)

Net increase	7,871	$72,464	10,292	$100,191

Class R3 shares

Sold	76,017	$732,971	242,749	$2,189,044
Distributions reinvested	8,055	77,082	2,315	20,120
Repurchased	(32,203)	(316,153)	(25,340)	(222,329)

Net increase	51,869	$493,900	219,724	$1,986,835

Class R4 shares

Sold	3,458	$33,307	15,427	$131,350
Distributions reinvested	450	4,300	218	1,886
Repurchased	(4,006)	(38,119)	(29,567)	(257,564)

Net decrease	(98)	($512)	(13,922)	($124,328)

Class R5 shares

Sold	329,904	$3,171,523	19,493	$170,180
Distributions reinvested	9,131	87,380	2,468	21,424
Repurchased	(90,692)	(877,881)	(37,846)	(323,919)

Net increase (decrease)	248,343	$2,381,022	(15,885)	($132,315)

Class 1 shares

Sold	7,172,458	$68,453,593	21,928,840	$190,462,834
Distributions reinvested	2,200,394	21,035,765	1,447,738	12,566,363
Repurchased	(1,915,263)	(18,341,924)	(1,489,992)	(12,916,399)

Net increase	7,457,589	$71,147,434	21,886,586	$190,112,798

Net increase	8,178,706	$78,071,379	22,638,175	$196,721,121


	Semiannual report \| Lifecycle Portfolios	57


Lifecycle 2015 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	570,100	$5,462,086	982,395	$8,620,078
Distributions reinvested	48,943	463,976	32,236	280,452
Repurchased	(245,019)	(2,319,327)	(536,500)	(4,704,780)

Net increase	374,024	$3,606,735	478,131	$4,195,750

Class R1 shares

Sold	37,291	$355,096	73,160	$637,498
Distributions reinvested	3,848	36,442	2,544	22,131
Repurchased	(25,091)	(239,391)	(22,528)	(200,099)

Net increase	16,048	$152,147	53,176	$459,530

Class R3 shares

Sold	78,015	$724,469	152,720	$1,340,981
Distributions reinvested	6,702	63,470	3,928	34,136
Repurchased	(43,589)	(411,751)	(44,318)	(392,219)

Net increase	41,128	$376,188	112,330	$982,898

Class R4 shares
Sold	904	$8,561	10,366	$88,218
Distributions reinvested	241	2,280	117	1,014
Repurchased	(230)	(2,130)	(46,506)	(408,668)
Net increase (decrease)	915	$8,711	(36,023)	($319,436)

Class R5 shares

Sold	146,729	$1,399,041	41,145	$358,609
Distributions reinvested	3,887	36,808	601	5,222
Repurchased	(20,522)	(195,987)	(22,979)	(195,788)

Net increase	130,094	$1,239,862	18,767	$168,043

Class 1 shares

Sold	4,788,203	$45,622,987	14,323,995	$125,315,257
Distributions reinvested	1,741,426	16,473,894	1,259,384	10,944,047
Repurchased	(1,496,505)	(14,340,066)	(2,179,027)	(19,137,884)

Net increase	5,033,124	$47,756,815	13,404,352	$117,121,420

Net increase	5,595,333	$53,140,458	14,030,733	$122,608,205



Lifecycle 2010 Portfolio
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class A shares

Sold	519,369	$5,033,238	750,166	$6,743,177
Distributions reinvested	36,743	352,730	17,738	158,050
Repurchased	(204,513)	(1,976,176)	(378,130)	(3,410,476)

Net increase	351,599	$3,409,792	389,774	$3,490,751

Class R1 shares

Sold	18,450	$179,814	38,909	$339,193
Distributions reinvested	1,012	9,693	1,166	10,364
Repurchased	(18,319)	(173,566)	(28,389)	(259,365)

Net increase	1,143	$15,941	11,686	$90,192

Class R3 shares

Sold	20,171	$195,978	61,960	$554,425
Distributions reinvested	5,431	52,080	2,666	23,726
Repurchased	(11,300)	(109,738)	(54,421)	(474,078)

Net increase	14,302	$138,320	10,205	$104,073


58	Lifecycle Portfolios \| Semiannual report


Lifecycle 2010 Portfolio continued
	Six months ended 2-28-11			Year ended 8-31-10
	Shares	Amount	Shares	Amount
Class R4 shares

Sold	172	$1,653	1,389	$11,991
Distributions reinvested	281	2,696	186	1,655
Repurchased	(50)	(480)	(7,488)	(67,079)

Net increase (decrease)	403	$3,869	(5,913)	($53,433)

Class R5 shares

Sold	459,894	$4,438,044	14,502	$130,065
Distributions reinvested	7,599	72,798	613	5,447
Repurchased	(199,278)	(1,915,864)	(10,749)	(96,077)

Net increase	268,215	$2,594,978	4,366	$39,435

Class 1 shares

Sold	3,372,134	$32,443,921	40,808,353	$364,072,860
Distributions reinvested	1,841,210	17,657,201	1,280,813	11,386,428
Repurchased	(6,883,937)	(66,994,674)	(10,356,889)	(93,117,543)

Net increase (decrease)	(1,670,593)	($16,893,552)	31,732,277	$282,341,745

Net increase (decrease)	(1,034,931)	($10,730,652)	32,142,395	$286,012,763

Note 6 — Purchase and sale of securities

The following summarizes the purchases and sales of the affiliated underlying funds for the six months ended February 28, 2011:


	Purchases	Sales and Maturities

Portfolio	Other Issuers	Other Issuers
Lifecycle 2045	$94,103,082	$35,508,336
Lifecycle 2040	84,113,381	34,484,114
Lifecycle 2035	115,000,777	47,487,880
Lifecycle 2030	151,037,096	74,805,376
Lifecycle 2025	194,463,482	103,598,407
Lifecycle 2020	194,039,875	115,395,801
Lifecycle 2015	151,541,580	99,540,521
Lifecycle 2010	154,521,829	167,998,724

Note 7 — Investment in affiliated underlying funds

The Portfolios invest primarily in affiliated underlying funds that are managed by the Adviser and affiliates. The Portfolios do not invest in the affiliated underlying funds for the purpose of exercising management or control; however, the Portfolios’ investments may represent a significant portion of each underlying fund’s net assets. For the six months ended February 28, 2011, the following Portfolios held 5% or more of an affiliated underlying fund’s net assets:


		Percent of Underlying
Portfolio	Affiliate-Class NAV	Funds’ Net Assets

Lifecycle 2045	John Hancock Funds II Index 500	5.07%
	John Hancock Funds II International Equity Index	7.04%
	John Hancock Funds II Mid Cap Growth Index	10.52%
	John Hancock Funds II Mid Cap Value Index	10.44%
	John Hancock Funds II Small Cap Index	7.76%
Lifecycle 2040	John Hancock Funds II Index 500	5.02%
	John Hancock Funds II International Equity Index	6.96%
	John Hancock Funds II Mid Cap Growth Index	10.44%
	John Hancock Funds II Mid Cap Value Index	10.30%
	John Hancock Funds II Small Cap Index	7.69%
Lifecycle 2035	John Hancock Funds II Index 500	6.67%
	John Hancock Funds II International Equity Index	9.26%
	John Hancock Funds II Mid Cap Growth Index	13.85%
	John Hancock Funds II Mid Cap Value Index	13.71%
	John Hancock Funds II Small Cap Index	10.19%
Lifecycle 2030	John Hancock Funds II Index 500	8.24%
	John Hancock Funds II International Equity Index	11.40%
	John Hancock Funds II Mid Cap Growth Index	16.28%
	John Hancock Funds II Mid Cap Value Index	16.05%
	John Hancock Funds II Small Cap Index	12.50%


	Semiannual report \| Lifecycle Portfolios	59


		Percent of Underlying
Portfolio	Affiliate-Class NAV	Funds’ Net Assets

Lifecycle 2025	John Hancock Funds II Index 500	8.96%
	John Hancock Funds II International Equity Index	11.81%
	John Hancock Funds II Mid Cap Growth Index	16.86%
	John Hancock Funds II Mid Cap Value Index	16.56%
	John Hancock Funds II Small Cap Index	10.90%
Lifecycle 2020	John Hancock Funds II Index 500	7.90%
	John Hancock Funds II International Equity Index	9.66%
	John Hancock Funds II Mid Cap Growth Index	12.88%
	John Hancock Funds II Mid Cap Value Index	12.82%
	John Hancock Funds II Small Cap Index	11.66%
Lifecycle 2015	John Hancock Funds II International Equity Index	5.26%
	John Hancock Funds II Mid Cap Growth Index	6.43%
	John Hancock Funds II Mid Cap Value Index	6.36%
	John Hancock Funds II Small Cap Index	8.28%
Lifecycle 2010	John Hancock Funds II Mid Cap Growth Index	9.53%
	John Hancock Funds II Mid Cap Value Index	9.48%
	John Hancock Funds II Small Cap Index	5.76%

60	Lifecycle Portfolios \| Semiannual report

Evaluation of Subadvisory Agreement by the Board of Trustees

At its meeting on December 17, 2010, the Board of Trustees (the “Board”) of John Hancock Funds II (the “Trust”), including all of the Independent Trustees, approved the appointment of John Hancock Asset Management a division of Manulife Asset Management (US) LLC (“John Hancock Asset Management” or the “Subadviser”) as an additional subadviser to the following funds (the “Portfolios”), each a series of the Trust.

Portfolios

a. Lifecycle 2045 Portfolio

b. Lifecycle 2040 Portfolio

c. Lifecycle 2035 Portfolio

d. Lifecycle 2030 Portfolio

e. Lifecycle 2025 Portfolio

f. Lifecycle 2020 Portfolio

g. Lifecycle 2015 Portfolio

h. Lifecycle 2010 Portfolio

This section describes the evaluation by the Board of Trustees of the amendment to the subadvisory agreement between John Hancock Investment Management Services, LLC (the “Adviser”), the adviser to the Portfolios, and the Subadviser relating to each of the Portfolios (the “Subadvisory Agreement Amendment”).