John Hancock Funds II N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21779

JOHN HANCOCK FUNDS II

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(Exact name of registrant as specified in charter)

601 CONGRESS STREET, BOSTON, MA  02210-2805

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(Address of principal executive offices)   (Zip code)

GORDON M. SHONE, 601 CONGRESS STREET, BOSTON, MA  02210-2805

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(Name and address of agent for service)

Registrant's telephone number, including area code: (617) 663-3000

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Date of fiscal year end: 8/31

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Date of reporting period: 8/31/08

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ITEM 1. REPORTS TO STOCKHOLDERS.

The Registrant prepared four annual reports to shareholders for the year ended August 31, 2008 for series of John Hancock Funds with August 31 fiscal year end.  The first report applies to the Floating Rate Income Fund, the second report applies to the Optimized Value Fund, the third report applies to 9 Lifecycle Portfolios and the fourth report applies to 57 of the Registrant’s Funds.

John Hancock

Floating Rate Income Fund

Annual Report

8.31.08

CEO corner

TABLE OF CONTENTS
Your fund at a glance	page 1
Managers’ report	page 2
ANNUAL REPORT
Discussion of Fund performance	page 6
A look at performance	page 7
Your expenses	page 9
Portfolio summary	page 11
Fund’s investments	page 12
Financial statements	page 20
Notes to financial statements	page 30
Trustees and Officers	page 41
More information	page 45

To Our Shareholders,

The financial markets battled a laundry list of ills and produced negative results in a volatile 12 months ended August 31, 2008. The worst U.S. housing slump since the Great Depression, combined with a subprime mortgage-induced credit crunch, an anemic economy bordering on recession and skyrocketing oil prices for much of the period, sent the markets tumbling into bear market territory in early July. For the year ended August 31, 2008, the Standard & Poor’s 500 Index returned –11.14%, led down by financial stocks, which were the most severely impacted by the credit crisis. The pain was felt in financial markets around the world, amid inflation fears and concerns about the spillover effects of the widening U.S. credit woes.

Bonds held up much better in the 12-month period, as the Federal Reserve Board cut interest rates seven times between September 2007 and April 2008 to help bolster the economy and made other efforts to provide liquidity to the credit markets. For the 12 months ended August 31, 2008, the Lehman Brothers U.S. Aggregate Index — a broad measure of bond market performance — returned 5.86%. It’s worth noting that the10-year return for bonds, including Treasuries, has now eclipsed the 10-year return of stocks, a very rare occurrence. In every instance when this has happened in the past, stocks went on to outperform both bonds and Treasuries over the ensuing 10-year period. Of course, there’s no guarantee that that will occur this time.

Just weeks after the Fund’s reporting period ended, volatility spiked even further, as the credit markets virtually ground to a halt amid investors’ growing concerns about the extent and duration of financial companies’ mortgage losses — and about their ability to carry on. The fears mounted in a period of extraordinary volatility starting in mid-September in response to the sale, bankruptcy, takeover or reorganization of numerous renowned financial institutions. Top among them was the U.S. government’s takeover of mortgage giants Fannie Mae and Freddie Mac and insurance giant AIG. In reaction, the Dow Jones Industrial Average experienced wild swings — up and down days of several hundred points a day.

Even a much-anticipated $700 billion rescue package approved in early October by the U.S. government to shore up the financial system and restore investor confidence did little to calm the markets. The contagion spread overseas, where markets worldwide plunged as European and other foreign governments began taking dramatic steps to bolster their ailing banks and avoid a global recession.

Recent events, as trying as they have been, are a vivid example of the importance of keeping a long-term perspective and sticking to your investment goals. With negative sentiment abounding and the prospect for continued volatility quite real, the impulse to flee is understandable. But we urge you to stay the course and keep a well-diversified portfolio, along with a longer-term investment perspective. Leaving the market can mean missing out on the inevitable moves up. Working with your investment professional on your long-term plan is especially critical in turbulent times to avoid making emotional decisions.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of October 21, 2008. They are subject to change at any time.

Not part of the annual report

Your fund at a glance

The Fund seeks a high level of current income by under normal market conditions investing at least 80% of its net assets (plus any borrowings for investment purposes) in floating rate loans, which often include debt securities of domestic and foreign issuers that are rated below investment grade at the time of purchase, and other floating rate securities.

	Since inception
Ø	Bank loans declined in value as a massive supply-and-demand imbalance and a weak economic backdrop weighed on the market.
Ø	The Fund advanced, outperforming its benchmark index and peer group average.
Ø	Favorable sector allocation and a conservative approach early in the period contributed to the portfolio’s outperformance.

                  John Hancock Floating Rate Income Fund

                  Fund performance from inception January 2, 2008 through August 31, 2008.

Total returns for the Fund are at net asset value with all distributions reinvested. These returns do not reflect the deduction of the maximum sales charge, which would reduce the performance shown above.

Past performance is no guarantee of future results.

Top 10 holdings
Community Health Systems, Inc., 7.51% due 7-2-14	1.8	%
Panamsat Corp., 8.00% due 6-30-13	1.8	%
Sunguard Homes, 6.15% due 8-15-12	1.7	%
ALLTEL Communications, Inc., 5.08% due 5-15-15	1.7	%
HCA, Inc., 8.15% due 11-01-13	1.7	%
Calpine Corp., 8.60% due 3-29-09	1.7	%
Direct TV Holdings, Inc., 5.25% due 4-13-13	1.5	%
Cablevision Systems Corp., 6.45% due 3-30-13	1.5	%
Energy Future Holdings Corp., 8.50% due 10-10-14	1.5	%
First Data Corp., 7.98% due 10-15-14	1.4	%

As a percentage of net assets on August 31, 2008.

Not part of the annual report 1

Managers’ report

John Hancock
Floating Rate Income Fund

Bank-loan prices fell during the first eight months of 2008 as the bank-loan market continued to struggle with a massive supply-and-demand imbalance and a weak economic backdrop. For the period from the inception of John Hancock Floating Rate Income Fund on January 2 through August 31, 2008, the S&P/LSTA Leveraged Performing Loan Index, a broad benchmark for the bank-loan market, returned –2.00%.

At the beginning of the period, the bank-loan market faced a backlog of new issues that represented 30%–40% of the entire market’s value. At the same time, the main buyers of bank loans — managers of collateralized loan obligations (CLOs), who purchased 60% of all primary loan issuance in 2007 — had disappeared in the wake of the credit crunch. Nonetheless, approximately 90% of the backlog was whittled away by the end of the reporting period, but the cost was a sharp rise in bank-loan yields and a steep decline in bank-loan prices.

Most of the decline occurred in the first three months of the year, when the supply overhang was at its peak. In the second quarter, bank-loan prices began to stabilize as the backlog eased, leading to a spate of positive performance. But loan prices resumed their downward trajectory late in the period as economic data began to show signs of further weakness.

Reflecting the sluggish economic environment, default rates on bank loans increased to 3.3% during the period, just above the 10-year average

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE … AND WHAT’S BEHIND THE NUMBERS
Forest products	▲	Declining energy prices at the end of the period helped reduce production costs, boosting earnings
Telecommunications	▲	Industry consolidation and relative stability contributed favorably to results
Automotive	▼	Industry continued to struggle with depressed sales and heavy losses

2 Not part of the annual report

From the Portfolio Management Team

Western Asset Management Company

of 3.0%. However, the default rate overstates the degree of fundamental weakness as defaults have been mostly confined to smaller issuers.

“Bank-loan prices fell during the first eight months of 2008 as the bank-loan market continued to struggle with a massive supply-and-demand imbalance and a weak economic backdrop.”

Fund performance

For the period from the Fund’s inception on January 2, 2008, through August 31, 2008, John Hancock Floating Rate Income Fund’s Class A, Class B, Class C, Class I, Class 1 and Class NAV shares posted total returns of 1.23%, 0.76% 0.81%, 1.52%, 1.48% and 1.59%, respectively, at net asset value. The Fund outperformed both the –2.00% return of the S&P/LSTA Leveraged Performing Loan Index and the –2.63% average return of Morningstar, Inc.’s bank loan category.¹ Keep in mind that your net asset value return will differ from the Fund’s performance if you were not invested in the Fund for the entire period or did not reinvest all distributions.

Sector allocation added value

While the bank-loan market declined during the period, the Fund posted a positive return, outperforming its benchmark index and Morningstar peer group. Sector weightings were primarily responsible for the portfolio’s outperformance. The portfolio held overweight positions in the loans of forest products makers and telecommunications companies, both of which were among the top performers in the bank-loan market. In addition, the portfolio was underweight the automotive and publishing industries, which suffered substantial losses during the period.

Not part of the annual report 3

“While the bank-loan market declined during the period, the Fund posted a positive return, outperforming its benchmark index and Morningstar peer group.”

The portfolio also benefited from a conservative approach early in the period, when the bank-loan market was suffering the brunt of its decline. We maintained a larger cash position, which aided performance in the first quarter and gave us the liquidity to purchase attractively valued assets at a deeper discount in the second quarter of the year.

New opportunities

More recently, we have been examining investment opportunities in several of the more beaten-down segments of the market. For example, we remain concerned with the credit fundamentals in the automotive and airline sectors, but bank-loan yields in these sectors have reached a level where we are intrigued by the risk/reward trade-off being offered. In particular, the airline industry appears to have a firm grasp on its current situation and is taking early and decisive action to remain operational.

Another area we have been exploring is the consumer cyclical sector, which continues to face a challenging economic environment. However, we have been able to find value in companies with abundant liquidity and less economic sensitivity.

SECTOR DISTRIBUTION²

Consumer cyclical	41%
Communications	20%
Consumer, Non-cyclical	13%
Basic Materials	9%
Energy	8%
Industrial	3%
Financial	2%
Technology	1%
Other	3%

Outlook

Volatility in the loan market has been extremely high in 2008, and we expect that to continue given the evident weakness in the broader economy. But this volatility has not changed our optimistic long-term view toward bank loans. Although the market’s fundamentals have softened somewhat, we continue to think that the worst deterioration will remain isolated to a handful of sectors, not the broad impact that is currently priced into the market.

At the end of the period, bank loans were yielding approximately 650 basis points (6.5 percentage points) over the London Interbank Offered Rate (LIBOR, a common interest rate benchmark) — more than twice the historical average. At this level, the market could withstand a default rate of more

4 Not part of the annual report

than 12% (assuming recovery rates of around 70 cents on the dollar) and still generate returns in line with historical averages. This is not only well above the current default rate, but also 50% higher than the market’s all-time high of 8.2% in 2000.

Consequently, we believe that the current environment — where the market has priced in a severe recession even though earnings remain supportive for credit, and default rates have not gapped higher — reflects an extreme level of pessimism, and therefore an attractive long-term investment opportunity.

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

Past performance is no guarantee of future results.

Sector 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.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
2	As a percentage of net assets on August 31, 2008.
	Not part of the annual report	5

Discussion of Fund performance

By Western Asset Management Company

“Bank-loan prices fell during the first eight months of 2008...”

Bank-loan prices fell during the first eight months of 2008 as the bank-loan market continued to struggle with a massive supply-and-demand imbalance and a weak economic backdrop. Much of the decline occurred in the first quarter of the year, when the bank-loan market faced a huge backlog of new issues. Although nearly all of the supply was absorbed by the end of the period, the cost was a sharp rise in bank-loan yields and a steep decline in bank-loan prices. Reflecting the sluggish economic environment, default rates on bank loans increased to 3.3% during the period, just above the 10-year average of 3.0%. However, defaults have been mostly confined to smaller issuers.

Fund performance

For the period from the Fund’s inception on January 2, 2008, to August 31, 2008, John Hancock Floating Rate Income Fund’s Class A, Class B, Class C, Class I, Class 1 and Class NAV shares posted total returns of 1.23%, 0.76% 0.81%, 1.52%, 1.48% and 1.59%, respectively, at net asset value. The Fund outperformed both the –2.00% return of the S&P/ LSTA Leveraged Performing Loan Index and the –2.63% average return of the Morningstar bank loan category.

The Fund posted a positive return, outperforming the declines of its benchmark index and Morningstar peer group. Sector weightings were primarily responsible for the portfolio’s outperformance, particularly overweight positions in forest products and telecommunications, as well as underweights in the automotive and publishing industries.

More recently, we have been examining investment opportunities in several of the more beaten-down segments of the market. For example, we remain concerned with the credit fundamentals in the automotive and airline sectors, but bank-loan yields in these sectors have reached a level where we are intrigued by the risk/reward trade-off being offered. We have also been able to find value in consumer companies with abundant liquidity and less economic sensitivity.

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

Past performance is no guarantee of future results.

Sector 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.

6 Floating Rate Income Fund | Annual report

A look at performance

For the periods ended August 31, 2008

		Average annual returns % with maximum sales charge (POP)				Cumulative total returns % with maximum sales charge (POP)				SEC 30-day yield (%) as of 8-31-08
Class	Inception date	One year	Five years	Ten years	Since inception	1-year	5-year	10-year	Since inception
A	1-2-08	—	—	—	—	—	—	—	–1.81	6.01
B	1-2-08	—	—	—	—	—	—	—	–4.14	5.40
C	1-2-08	—	—	—	—	—	—	—	–0.17	5.26
I1	1-2-08	—	—	—	—	—	—	—	1.52	6.55
11	1-2-08	—	—	—	—	—	—	—	1.48	6.52
NAV1	1-2-08	—	—	—	—	—	—	—	1.59	6.57

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 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 charge is 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 December 31, 2008. The net expenses are as follows: Class A — 1.20%, Class B — 1.95%, Class C — 1.95%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.42%, Class B — 2.12%, Class C — 2.12%. For the other classes, the net expenses equal the gross expenses and are as follows: Class I — 0.82%, Class 1 — 0.82%, Class NAV — 0.77%.

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.

1	For certain types of investors as described in the Fund’s Class I, Class 1 and Class NAV share prospectuses.
	Annual report | Floating Rate Income Fund	7

A look at performance

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Floating Rate Income Fund Class A shares for the period indicated. For comparison, we’ve shown the same investment in the S&P/LSTA Leveraged Performing Loan Index.

Class	Period beginning	Without sales charge		With maximum sales charge		Index
B	1-2-08	$	10,076	$	9,586	$	9,800
C	1-2-08		10,081		9,983		9,800
I2	1-2-08		10,152		10,152		9,800
12	1-2-08		10,148		10,148		9,800
NAV2	1-2-08		10,159		10,159		9,800

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 August 31, 2008. 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 Leveraged 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.

1	NAV represents net asset value and POP represents public offering price.
2	For certain types of investors as described in the Fund’s Class I, Class 1 and Class NAV share prospectuses.
8	Floating Rate Income Fund | Annual report

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 your fund’s actual ongoing operating expenses, and is based on your fund’s actual return. It assumes an account value of $1,000.00 on March 1, 2008 with the same investment held until August 31, 2008.

	Account value on 3-1-08		Ending value on 8-31-08		Expenses paid during period ended 8-31-08		1
Class A	$	1,000.00	$	1,030.50	$	6.02
Class B		1,000.00		1,026.90		9.83
Class C		1,000.00		1,027.60		9.94
Class I		1,000.00		1,033.00		4.19
Class 1		1,000.00		1,032.50		4.04
Class NAV		1,000.00		1,033.50		3.83

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at August 31, 2008, 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:

Example

Annual report | Floating Rate Income Fund 9

Your expenses

Hypothetical example for comparison purposes

This table allows you to compare your 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 your fund’s actual return). It assumes an account value of $1,000.00 on March 1, 2008, with the same investment held until August 31, 2008. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

	Account value on 3-1-08		Ending value on 8-31-08		Expenses paid during period ended 8-31-08		1
Class A	$	1,000.00	$	1,019.20	$	5.99
Class B		1,000.00		1,015.40		9.78
Class C		1,000.00		1,015.30		9.88
Class I		1,000.00		1,021.00		4.17
Class 1		1,000.00		1,021.20		4.01
Class NAV		1,000.00		1,021.40		3.81

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

¹ Expenses are equal to the Fund’s annualized expense ratio of 1.18%, 1.93%, 1.95%, 0.82%, 0.79% and 0.75% for Class A, Class B, Class C, Class I, Class 1 and Class NAV respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/366 (to reflect the one-half year period).

10 Floating Rate Income Fund | Annual report

Portfolio summary

Top 10 holdings1
Community Health Systems, Inc., 7.51% due 7-2-14	1.8	%
Panamsat Corp., 8.00% due 6-30-13	1.8	%
Sunguard Homes, 6.15% due 8-15-12	1.7	%
ALLTEL Communications, Inc., 5.08% due 5-15-15	1.7	%
HCA, Inc., 8.15% due 11-01-13	1.7	%
Calpine Corp., 8.60% due 3-29-09	1.7	%
Direct TV Holdings, Inc., 5.25% due 4-13-13	1.5	%
Cablevision Systems Corp., 6.45% due 3-30-13	1.5	%
Energy Future Holdings Corp., 8.50% due 10-10-14	1.5	%
First Data Corp., 7.98% due 10-15-14	1.4	%

Sector distribution1,2
Consumer cyclical	41	%
Communications	20	%
Consumer, Non-cyclical	13	%
Basic Materials	9	%
Energy	8	%
Industrial	3	%
Financial	2	%
Technology	1	%
Other	3	%

1	As a percentage of net assets on August 31, 2008.
2	Sector 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.

Annual report | Floating Rate Income Fund 11

Fund’s investments

FINANCIAL STATEMENTS

Securities owned by the Fund on 8-31-08

This schedule is divided into three main categories: term loans, corporate bonds and repurchase agreements. Term loans and corporate bonds are further broken down by industry group. Repurchase agreements, which represent the Fund’s cash position, are listed last.

Issuer	Principal amount		Value
Term loans 94.17%			$	493,393,588
(Cost $500,485,541)
Aerospace 2.58%				13,519,321
Dubai Aerospace Enterprise, Term Loan Strip 8.45% due 07/31/2014 (b)	$	5,986,700		5,582,598
Transdigm, Term Loan B 4.685% due 07/01/2012 (b)		4,285,000		4,110,043
Wesco Aircraft Add On, Term Loan 7.65% due 09/29/2013 (b)		1,500,000		1,435,005
Wesco Aircraft Hardware, Term B 7.756% due 09/29/2013 (b)		2,500,000		2,391,675
Air Travel 0.69%				3,618,831
Hawker Beechcraft Corp., Inc. 7.40% due 03/26/2014 (b)		3,881,450		3,618,831
Airlines 1.57%				8,253,281
Delta Air Lines, Inc., Tranche A 4.671% due 04/30/2012 (b)		4,900,000		4,097,625
United Air Lines, Inc., Tranche B 7.35% due 01/12/2014 (b)		5,697,519		4,155,656
Amusement & Theme Parks 0.63%				3,289,840
Cedar Fair LP, Tranche B 8.00% due 06/13/2012 (b)		3,482,234		3,289,840
Apparel & Textiles 0.71%				3,705,067
Hanes Brands, Inc., Tranche B 7.65% due 10/15/2013 (b)		1,000,000		968,750
Iconix, Tranche B 7.60% due 05/01/2014 (b)		2,926,542		2,736,317
Auto Parts 0.82%				4,277,176
Allison Transmission, Inc., Tranche B 8.45% due 08/07/2014 (b)		4,771,450		4,277,176
Auto Services 1.80%				9,424,893
Hertz Corp. 6.75% due 01/21/2012 (b)		7,201,416		6,574,893
Visteon, Tranche B 8.30% due 06/20/2013 (b)		4,000,000		2,850,000

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Automobiles 1.61%			$	8,425,780
Adesa, Inc., Tranche B 7.60% due 09/22/2013 (b)	$	3,950,856		3,523,689
Ford Motor Company, Tranche B 8.35% due 11/29/2013 (b)		2,992,405		2,320,371
General Motors Corp., Tranche B 7.40% due 12/15/2013 (b)		3,482,317		2,581,720
Broadcasting 0.83%				4,353,995
Citadel Broadcasting Corp., Tranche B 6.86% due 06/12/2014 (b)		4,000,000		3,220,000
CMP Susquehanna Corp. 7.40% due 06/07/2013 (b)		1,492,099		1,133,995
Building Materials & Construction 1.69%				8,869,591
Sunguard Homes, Tranche B 6.15% due 08/15/2012 (b)		9,462,108		8,869,591
Business Services 0.31%				1,615,000
Rental Service Corp., 2nd Lien 8.90% due 12/01/2013 (b)		2,000,000		1,615,000
Cable & Television 8.06%				42,254,581
Cablevision Systems Corp., Tranche B 6.45% due 03/30/2013 (b)		8,336,186		7,932,381
Charter Communications, Inc., Tranche B 7.35% due 03/15/2014 (b)		7,375,000		6,442,063
Charter Communications, Inc., Tranche B2 7.8675% due 03/06/2014 (b)		3,530,462		3,472,351
Direct TV Holdings, Inc., Tranche C 5.25% due 04/13/2013 (b)		8,000,000		7,945,040
Insight Midwest Holdings LLC, Tranche B 7.65% due 04/10/2014 (b)		4,250,000		4,086,078
Lodgenet Entertainment Corp., Tranche B 7.35% due 04/04/2014 (b)		4,196,435		3,650,898
Univision Communications, Inc., Tranche B 7.60% due 09/15/2014 (b)		5,625,000		4,516,875
UPC Broadband Holding NV 7.10% due 03/30/2014 (b)		4,500,000		4,208,895
Cellular Communications 2.62%				13,754,136
ALLTEL Communications, Inc., Tranche B2 5.08% due 05/15/2015 (b)		8,967,652		8,864,704
Centennial Cellular, Tranche B 3.90% due 02/09/2011 (b)		2,556,722		2,499,732
Metropcs Wireless, Inc. Tranche B 5.035% due 02/20/2014 (b)		2,500,000		2,389,700
Chemicals 2.00%				10,468,644
Brenntag Term Loan B 7.00% due 12/23/2013 (b)		2,500,000		2,301,575
Lyondell Chemical Company 6.388% due 12/20/2014 (b)		2,743,125		2,247,305
Lyondell Chemical Company, Tranche B3 6.46% due 12/20/2014 (b)		7,236,875		5,919,764

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Commercial Services 5.86%			$	30,687,561
Acosta, Tranche B 8.25% due 08/15/2013 (b)	$	2,230,421		2,068,715
Affinion Group, Tranche B 6.75% due 10/17/2012 (b)		5,000,000		4,809,400
Allied Waste Industries, Inc., Tranche B 4.401% due 03/25/2012 (b)		6,919,359		6,755,025
Asurion Corp. Tranche B 8.35% due 07/02/2014 (b)		5,250,000		4,914,000
Sensata Technologies 6.85% due 04/27/2013 (b)		3,597,788		3,133,061
Ticketmaster, Term Loan 6.05% due 08/01/2014 (b)		3,000,000		3,015,000
US Investigations Services, Inc., Tranche B 8.20% due 02/21/2015 (b)		5,107,705		4,679,935
West Corp., Tranche B 8.15% due 10/01/2013 (b)		1,492,444		1,312,425
Computer Services 0.53%				2,797,697
Activant Solutions, Inc., Tranche B 7.10% due 05/02/2013 (b)		3,250,000		2,797,697
Containers & Glass 2.29%				12,014,236
Graham Packaging Company, Inc. 7.60% due 10/07/2011 (b)		4,724,852		4,489,696
Graphic Packaging, Inc., Tranche B 7.35% due 05/03/2014 (b)		3,150,000		2,966,355
Graphic Packaging, Inc., Tranche C 5.448% due 05/16/2014 (b)		4,726,250		4,558,185
Cosmetics & Toiletries 0.90%				4,711,983
Sally Holdings LLC, Tranche B 7.944% due 11/15/2013 (b)		4,982,903		4,711,983
Data Processing & Management 1.35%				7,077,575
First Data Corp., Tranche B2 7.98% due 10/15/2014 (b)		7,714,903		7,077,575
Educational Services 1.29%				6,736,151
Education Management, Tranche C 7.66% due 06/12/2013 (b)		3,589,791		3,273,889
Thomson Learning Holdings, Tranche B 8.50% due 11/05/2014 (b)		3,982,450		3,462,262
Electrical Utilities 4.91%				25,745,629
Calpine Corp. 8.60% due 03/29/2009 (b)		9,464,987		8,781,426
Energy Future Holdings Corp., Tranche B3 8.50% due 10/10/2014 (b)		8,494,975		7,896,079
Meg Energy, Tranche B 7.00% due 04/15/2013 (b)		3,984,720		3,804,173
NRG Energy, Inc., Tranche B 6.60% due 02/01/2013 (b)		984,524		932,837
7.10% due 02/01/2013 (b)		4,571,097		4,331,114

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Energy 2.06%			$	10,792,278
Brand Energy Services, Tranche B 7.65% due 02/07/2014 (b)	$	4,449,159		4,104,349
Express Energy Service, Term Loan 8.35% due 07/02/2013 (b)		4,000,000		3,940,000
TXU Energy, Tranche B2 8.50% due 10/10/2014 (b)		2,952,381		2,747,929
Financial Services 0.36%				1,887,703
Chrysler Financial, Tranche B 9.35% due 08/03/2012 (b)		1,741,228		1,386,453
Lender Processing Services, Tranche B 5.05% due 06/18/2014 (b)		500,000		501,250
Food & Beverages 3.05%				15,973,904
Aramark Corp. 7.475% due 01/31/2014 (b)		6,842,961		6,490,343
Bolthouse Farms, Inc., Tranche B 6.59% due 12/16/2012 (b)		5,227,667		5,070,837
Dole Food Company, Inc., Letter of Credit 6.75% due 04/12/2013 (b)(e)		4,802,965		4,412,724
Healthcare Products 4.50%				23,564,425
Bausch & Lomb, Inc., Tranche B 8.25% due 04/11/2015 (b)(d)		5,980,990		5,818,786
Biomet, Inc., Tranche B 5.75% due 03/25/2015 (b)		3,992,462		3,911,615
Fenwal, Inc. 7.61% due 03/01/2014 (b)		3,991,353		3,482,456
Hanger Orthopedic Group, Inc., Tranche B 7.70% due 07/15/2014 (b)		1,478,174		1,424,590
Pharmaceutical Health Technologies, Tranche B 7.60% due 04/15/2014 (b)		4,551,033		3,970,776
Royalty Pharma, Tranche B 6.85% due 05/15/2014 (b)		4,987,373		4,956,202
Healthcare Services 2.53%				13,250,854
DaVita, Tranche B1 6.80% due 03/15/2014 (b)		4,500,000		4,336,875
Manor Care, Tranche B 7.90% due 11/15/2014 (b)		5,486,119		4,992,368
Select Medical Corp., Tranche B 4.63% due 02/24/2012 (b)		4,220,553		3,921,611
Hotels & Restaurants 0.32%				1,660,575
QUIZNO’S Corp. 7.35% due 05/05/2012 (b)		1,974,924		1,660,575
Household Products 0.41%				2,129,314
Yankee Candle, Term Loan B 7.40% due 01/15/2014 (b)		2,461,634		2,129,314

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Leisure Time 7.95%			$	41,632,244
Carmike Cinemas, Inc., Term Loan 8.25% due 05/19/2012 (b)	$	3,000,000		2,921,250
CCM Merger, Inc., Tranche B 5.65% due 07/21/2012 (b)		4,194,970		3,738,767
Golden Nugget, Inc., Tranche B 7.35% due 06/14/2014 (b)(d)		3,750,000		3,150,000
Harrah’s Operating Company, Inc., Tranche B2 6.162% due 02/28/2015 (b)		7,982,500		7,001,610
Las Vegas Sands LLC, Tranche B 7.10% due 05/08/2014 (b)		6,233,244		5,307,982
Metro-Goldwyn-Mayer, Inc. Term Loan B 5.35% due 04/08/2011 (b)		2,500,000		1,871,875
Oceania Cruises, Inc., Tranche B 7.60% due 05/01/2014 (b)		1,491,643		1,245,522
Penn National Gaming, Inc., Term Loan B 5.30% due 10/03/2012 (b)		5,000,000		4,782,400
Regal Cinemas, Tranche B 3.92% due 10/19/2010 (b)		4,740,482		4,477,765
Tropicana Entertainment, Tranche B 7.86% due 12/15/2011 (b)		4,000,000		3,261,440
Venetian Macau, Tranche B 7.75% due 04/01/2013 (b)		3,655,000		3,539,721
Venetian Macau, Tranche Delayed Draw 1.375% due 04/01/2013 (b)		345,000		333,912
Medical-Hospitals 7.40%				38,777,672
Community Health Systems, Inc., Tranche B 7.51% due 07/02/2014 (b)(d)		9,870,914		9,326,632
HCA, Inc., Tranche A 7.71% due 11/16/2012 (b)		1,483,832		1,386,374
HCA, Inc., Tranche B 8.15% due 11/01/2013 (b)		9,455,798		8,861,880
Health Management Associates, Inc., Tranche B 7.15% due 01/16/2014 (b)		6,241,248		5,719,667
HVHC, Inc., Tranche B 7.75% due 08/15/2013 (b)		3,946,612		3,601,283
Iasis Healthcare Corp., Tranche B 7.35% due 05/01/2014 (b)		5,349,419		4,990,580
Vanguard Health Holdings, Tranche B 6.409% due 05/18/2011 (b)		5,062,102		4,891,256
Oil & Gas Drilling 2.41%				12,634,497
Ashmore Energy International, Tranche B 8.35% due 05/30/2014 (b)		4,509,717		4,103,842
Hercules Offshore LLC, Tranche B 7.10% due 07/11/2013 (b)		4,964,962		4,811,892
Quicksilver Resource, Inc., 2nd Lien 7.802% due 08/08/2013 (b)		3,750,000		3,718,763

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Paper 2.73%			$	14,329,135
Georgia Pacific LLC, Tranche B1 6.75% due 12/23/2013 (b)	$	7,215,554		6,813,431
Georgia Pacific LLC, Tranche B2 1.774% due 12/20/2012 (b)		1,778,867		1,680,585
NewPage Corp., Tranche B 8.90% due 11/05/2014 (b)		5,981,241		5,835,119
Pipelines 1.15%				6,000,348
Dynegy Holdings, Inc. 6.633% due 04/02/2013 (b)		6,498,947		6,000,348
Plastics 0.89%				4,679,644
Berry Plastics Holding Company 7.35% due 04/03/2015 (b)		5,478,586		4,679,644
Publishing 4.28%				22,438,436
Dex Media West LLC, Tranche B 7.00% due 10/13/2014 (b)		5,000,000		4,575,000
Idearc, Inc., Tranche B 7.38% due 11/01/2014 (b)		6,298,180		4,412,316
Newsday LLC 9.75% due 07/15/2013 (b)		4,000,000		4,000,000
Nielsen Finance, Tranche B 8.25% due 08/15/2013 (b)		5,982,282		5,519,912
Quebecor World, Inc., Tranche B 6.50% due 01/17/2013 (b)		2,407,653		2,311,347
Tribune Company 7.426% due 05/17/2009 (b)		1,692,857		1,619,861
Retail Trade 4.41%				23,100,974
Amscan Holdings, Inc., Tranche B 7.61% due 05/01/2013 (b)		3,485,509		3,067,248
Dollar General Corp., Tranche B 7.60% due 07/15/2014 (b)		4,000,000		3,672,720
General Nutrition Center, Tranche B 7.60% due 09/06/2013 (b)		3,233,628		2,942,601
Michaels Stores, Inc., Tranche B 7.60% due 10/31/2013 (b)		5,468,044		4,218,486
Neiman Marcus Group, Inc., Tranche B 6.475% due 03/13/2013 (b)		6,733,805		6,249,846
Petco Animal Supplies, Inc., Tranche B 8.15% due 11/15/2013 (b)		3,232,956		2,950,073
Semiconductors 1.02%				5,337,938
Freescale Semiconductor, Inc., Tranche B 7.37% due 12/01/2013 (b)		5,970,982		5,337,938
Software 0.60%				3,132,828
CGG, Tranche B 7.40% due 01/30/2014 (b)		3,240,845		3,132,828

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Telecommunications Equipment & Services 3.62%			$	18,977,581
Level 3 Communications, Inc., Tranche B 7.65% due 03/01/2014 (b)	$	5,000,000		4,522,500
Panamsat Corp., Tranche B 8.00% due 06/30/2013 (b)		9,703,884		9,259,155
Telesat Canada, Tranche D Delayed Draw 8.20% due 10/15/2014 (b)(d)		2,210,953		2,116,302
Virgin Media Tranche B4 7.50% due 01/15/2014 (b)		3,220,522		3,079,624
Telephone 0.60%				3,163,474
Windstream Corp., Tranche B 4.57% due 07/17/2013 (b)		3,283,417		3,163,474
Transportation 0.50%				2,607,500
Swift Transport, Term Loan B 8.35% due 05/15/2014 (b)		3,500,000		2,607,500
Trucking & Freight 0.33%				1,721,296
Oshkosh Truck Corp. Tranche B zero coupon due 12/06/2013		1,888,608		1,721,296
Corporate bonds 5.41%			$	28,354,943
(Cost $30,487,116)
Air Travel 0.38%				2,012,703
Continental Airlines, Inc., Series 01-1 6.503% due 06/15/2011		1,030,000		927,000
Continental Airlines, Inc., Series 974A 6.90% due 01/02/2018		1,233,754		1,085,703
Auto Services 0.08%				441,250
Hertz Corp. 10.50% due 01/01/2016		500,000		441,250
Building Materials & Construction 0.45%				2,337,500
Nortek, Inc. 10.00% due 12/01/2013 (f)		2,500,000		2,337,500
Chemicals 0.21%				1,102,500
Georgia Gulf Corp. 9.50% due 10/15/2014		1,500,000		1,102,500
Financial Services 2.01%				10,528,830
Countrywide Financial Corp. 0.5544% due 05/15/2037 (b)		2,600,000		2,441,060
Ford Motor Credit Company LLC 12.00% due 05/15/2015 (b)		5,400,000		4,567,822
GMAC LLC 4.0544% due 05/15/2009 (b)		4,000,000		3,519,948
Healthcare Products 0.20%				1,050,000
Biomet, Inc. 10.375% due 10/15/2017		1,000,000		1,050,000

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

FINANCIAL STATEMENTS

Issuer	Principal amount		Value
Leisure Time 0.21%			$	1,077,300
Station Casinos, Inc. 7.75% due 08/15/2016	$	1,596,000		1,077,300
Paper 0.15%				809,360
Abitibi-Consolidated Company of Canada 15.50% due 07/15/2010 (f)		1,072,000		809,360
Real Estate 0.09%				477,000
Forest City Enterprises, Inc. 7.625% due 06/01/2015		530,000		477,000
Retail Trade 0.15%				780,000
Neiman Marcus Group, Inc. 10.375% due 10/15/2015		800,000		780,000
Semiconductors 0.53%				2,785,000
NXP BV/NXP Funding LLC 5.5406% due 10/15/2013 (b)		2,000,000		1,555,000
7.875% due 10/15/2014		1,500,000		1,230,000
Telecommunications Equipment & Services 0.95%				4,953,500
Citizens Communications Company 7.875% due 01/15/2027		600,000		516,000
iPCS, Inc. 4.9256% due 05/01/2013 (b)		5,000,000		4,437,500
Issuer, description, maturity date	Principal amount		Value
Repurchase agreements 3.24%			$	17,000,000
(Cost $17,000,000)
Lehman Brothers Tri-Party Repurchase Agreement dated 8-29-08 at 1.98% to be repurchased at $17,003,740 on 9-2-08, collateralized by $17,410,000 Federal National Mortgage Association, zero coupon due 10/15/2008 (valued at $17,340,012, including interest)	$	17,000,000		17,000,000
Total investments (Cost $547,972,657)† 102.82%			$	538,748,531
Liabilities in excess of other assets (2.82%)			($	14,785,722	)
Total net assets 100.00%			$	523,962,809

	Percentages are stated as a percent of net assets.
(b)	Variable rate obligation. The coupon rate shown represents the rate at end of period.
(d)	All or a portion of this position represents an unfunded loan commitment. The coupon rate will be determined at time of settlement.
(e)	Security has a line of credit Deutsche Bank AG New York Branch for $1,000,000.
(f)	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 $3,146,860 or 0.6% of the Fund’s net assets as of August 31, 2008.
†	At August 31, 2008, the aggregate cost of investment securities for federal income tax purposes was $548,211,285. Net unrealized depreciation aggregated $9,462,754, of which $4,334,149 related to appreciated investment securities and $13,796,903 related to depreciated investment securities.

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

Financial statements

FINANCIAL STATEMENTS

Statement of assets and liabilities 8-31-08

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 in unaffiliated issuers, at value (Cost $547,972,657)	$	538,748,531
Cash		1,764,811
Receivable for investments sold		2,005,795
Receivable for fund shares sold		448,568
Dividends and interest receivable		3,589,359
Receivable due from adviser		2,394
Other assets		15,557
Total assets		546,575,015
Liabilities
Payable for investments purchased		22,375,381
Payable for fund shares repurchased		145,874
Distributions payable		7,445
Payable to affiliates
Fund administration fees		1,188
Transfer agent fees		5,423
Other payables and accrued expenses		76,895
Total liabilities		22,612,206
Net assets
Capital paid-in	$	532,978,871
Undistributed net investment income		430,271
Accumulated undistributed net realized loss on investments		(222,207	)
Net unrealized depreciation on investments		(9,224,126	)
Net assets	$	523,962,809

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

FINANCIAL STATEMENTS

Statement of assets and liabilities (continued)

Net asset value per share
The Funds 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	$	11,027,369
Shares outstanding		1,126,048
Net asset value and redemption price per share	$	9.79
Class B1
Net assets	$	523,455
Shares outstanding		53,467
Net asset value, offering price and redemption price per share	$	9.79
Class C1
Net assets	$	1,579,145
Shares outstanding		161,168
Net asset value, offering price and redemption price per share	$	9.80
Class I
Net assets	$	542,717
Shares outstanding		55,438
Net asset value, offering price and redemption price per share	$	9.79
Class 1
Net assets	$	101,517
Shares outstanding		10,377
Net asset value, offering price and redemption price per share	$	9.78
Class NAV
Net assets	$	510,188,606
Shares outstanding		52,129,152
Net asset value, offering price and redemption price per share	$	9.79
Maximum public offering price per share
Class A (9.79 ÷ 97%)2	$	10.09

1	Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.
2	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

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

FINANCIAL STATEMENTS

Statement of operations For the period ended 8-31-08¹

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	$	16,734,714
Total investment income		16,734,714
Expenses
Investment management fees (Note 4)		1,694,568
Distribution and service fees (Note 4)		20,397
Transfer agent fees (Note 4)		6,844
Fund administration fees (Note 4)		28,103
Blue sky fees		9,124
Audit and legal fees		43,037
Printing and postage fees (Note 4)		8,301
Custodian fees		19,976
Trustees’ fees (Note 5)		1,608
Registration and filing fees		27,247
Miscellaneous		3,445
Total expenses		1,862,650
Less expense reductions (Note 4)		(19,506	)
Less transfer agency credit (Note 4)		(5	)
Net expenses		1,843,139
Net investment income		14,891,575
Realized and unrealized loss
Net realized loss on investments		(239,677	)
Change in net unrealized appreciation (depreciation) of investments		(9,224,126	)
Net realized and unrealized loss		(9,463,803	)
Increase in net assets from operations	$	5,427,772

¹ Period from 1-2-08 (commencement of operations) to 8-31-08.

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

FINANCIAL STATEMENTS

Statement of changes in net assets

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

	Period ended 8-31-08		1
Increase in net assets
From operations
Net investment income	$	14,891,575
Net realized loss		(239,677	)
Change in net unrealized appreciation (depreciation)		(9,224,126	)
Increase in net assets resulting from operations		5,427,772
Distributions to shareholders
From net investment income
Class A		(110,475	)
Class B		(7,068	)
Class C		(66,351	)
Class I		(5,779	)
Class 1		(3,720	)
Class NAV		(14,251,483	)
Total distributions		(14,444,876	)
From Fund share transactions (Note 6)		532,979,913
Total increase		523,962,809
Net assets
Beginning of period		—
End of period	$	523,962,809
Undistributed net investment income	$	430,271

¹ Period from 1-2-08 (commencement of operations) to 8-31-08.

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

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	8-31-08		1
Per share operating performance
Net asset value, beginning of period		10.00
Net investment income2		0.37
Net realized and unrealized loss on investments		(0.25	)
Total from investment operations		0.12
Less distributions
From net investment income		(0.33	)
Total distributions		(0.33	)
Net asset value, end of period	$	9.79
Total return (%)3,4,5		1.23
Ratios and supplemental data
Net assets, end of period in millions)	$	11
Ratios (as a percentage of average net assets)
Expenses before reductions		1.52	6
Expenses net of fee waiver		1.18	6
Expenses net of all fee waivers and credits		1.18	6
Net investment income		5.70	6
Portfolio turnover (%)		11

1	Class A shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Assumes dividend reinvestment and does not reflect the effect of sales charges.
5	Not annualized.
6	Annualized.

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

Financial highlights

CLASS B SHARES
Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		10.00
Net investment income2		0.31
Net realized and unrealized loss on investments		(0.24	)
Total from investment operations		0.07
Less distributions
From net investment income		(0.28	)
Total distributions		(0.28	)
Net asset value, end of period	$	9.79
Total return (%)3,4,5		0.76
Ratios and supplemental data
Net assets, end of period (in millions)	$	1
Ratios (as a percentage of average net assets)
Expenses before reductions		4.76	6
Expenses net of fee waiver		1.93	6
Expenses net of all fee waivers and credits		1.93	6
Net investment income		4.78	6
Portfolio turnover (%)		11

1	Class B shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Assumes dividend reinvestment and does not reflect the effect of sales charges.
5	Not annualized.
6	Annualized.

Annual report | Floating Rate Income Fund 25

FINANCIAL STATEMENTS

Financial highlights

CLASS C SHARES
Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		10.00
Net investment income2		0.32
Net realized and unrealized loss on investments		(0.24	)
Total from investment operations		0.08
Less distributions
From net investment income		(0.28	)
Total distributions		(0.28	)
Net asset value, end of period	$	9.80
Total return (%)3,4,5		0.81
Ratios and supplemental data
Net assets, end of period (in millions)	$	2
Ratios (as a percentage of average net assets)
Expenses before reductions		2.32	6
Expenses net of fee waiver		1.95	6
Expenses net of all fee waivers and credits		1.95	6
Net investment income		4.96	6
Portfolio turnover (%)		11

1	Class C shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Assumes dividend reinvestment and does not reflect the effect of sales charges.
5	Not annualized.
6	Annualized.

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

FINANCIAL STATEMENTS

Financial highlights

CLASS I SHARES
Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		10.00
Net investment income2		0.37
Net realized and unrealized loss on investments		(0.22	)
Total from investment operations		0.15
Less distributions
From net investment income		(0.36	)
Total distributions		(0.36	)
Net asset value, end of period	$	9.79
Total return (%)3,4,5		1.52
Ratios and supplemental data
Net assets, end of period (in millions)	$	1
Ratios (as a percentage of average net assets)
Expenses before reductions		4.48	6
Expenses net of fee waiver		0.82	6
Expenses net of all fee waivers and credits		0.82	6
Net investment income		5.78	6
Portfolio turnover (%)		11

1	Class I shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Assumes dividend reinvestment and does not reflect the effect of sales charges.
5	Not annualized.
6	Annualized.

See notes to financial statements Annual report | Floating Rate Income Fund 27

FINANCIAL STATEMENTS

Financial highlights

CLASS 1 SHARES
Period ended		8-31-08	1
Per share operating performance
Net asset value, beginning of period		10.00
Net investment income2		0.38
Net realized and unrealized loss on investments		(0.23	)
Total from investment operations		0.15
Less distributions
From net investment income		(0.37	)
Total distributions		(0.37	)
Net asset value, end of period	$	9.78
Total return (%)3,4,5		1.48
Ratios and supplemental data
Net assets, end of period (in millions)		—	6
Ratios (as a percentage of average net assets)
Expenses before reductions		0.78	7
Expenses net of fee waiver		0.78	7
Expenses net of all fee waivers and credits		0.78	7
Net investment income		5.83	7
Portfolio turnover (%)		11

1	Class 1 shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Assumes dividend reinvestment and does not reflect the effect of sales charges.
5	Not annualized.
6	Less than $500,000.
7	Annualized.

28 Floating Rate Income Fund | Annual report See notes to financial statements

FINANCIAL STATEMENTS

Financial highlights

CLASS NAV SHARES
Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		10.00
Net investment income2		0.40
Net realized and unrealized loss on investments		(0.24	)
Total from investment operations		(0.16	)
Less distributions
From net investment income		(0.37	)
Total distributions		(0.37	)
Net asset value, end of period	$	9.79
Total return (%)3,4,5		1.59
Ratios and supplemental data
Net assets, end of period (in millions)	$	510
Ratios (as a percentage of average net assets)
Expenses before reductions		0.75	6
Expenses net of fee waiver		0.75	6
Expenses net of all fee waivers and credits		0.75	6
Net investment income		6.16	6
Portfolio turnover (%)		11

1	Class NAV shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Assumes dividend reinvestment and does not reflect the effect of sales charges.
5	Not annualized.
6	Annualized.

See notes to financial statements Annual report | Floating Rate Income Fund 29

Notes to financial statements

Note 1
Organization

John Hancock Floating Rate Income Fund (the Fund), is a series of John Hancock Funds II (the Trust or JHF II) that commenced operations on January 2, 2008. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end investment management company. The Fund is non-diversified, as defined in the 1940 Act. The investment objective of the Fund is to seek a high level of current income.

John Hancock Life Insurance Company of New York (John Hancock New York) is a wholly owned subsidiary of John Hancock Life Insurance Company (U.S.A.) (John Hancock USA). John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (Manulife), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (MFC), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

John Hancock Investment Management Services, LLC (the Adviser or JHIMS), a Delaware limited liability company controlled by John Hancock USA, serves as investment adviser for the Trust and John Hancock Funds, LLC (the Distributor), a Delaware limited liability company, an affiliate of the Adviser, serves as principal underwriter.

The Board of Trustees have authorized the issuance of multiple classes of shares of the Fund, including classes designated as Class A, Class B, Class C, Class I, Class 1 and Class NAV shares. Class A, Class B and Class C shares are open to all retail investors. Class I shares are offered without any sales charge to various institutional and certain individual investors. Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class NAV shares are sold to affiliated funds of funds, which are funds of funds within the John Hancock funds complex. The shares of each class represent an interest in the same portfolio of investments of the Fund, and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Board of Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission (SEC) and the Internal Revenue Service. Shareholders of a class that bear distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Class B shares will convert to Class A shares eight years after purchase.

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. The following summarizes the significant accounting policies of the Fund:

Security valuation

The net asset value of Class A, Class B, Class C, Class I, Class 1 and Class NAV shares is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M. Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any

30 Floating Rate Income Fund | Annual report

sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Securities for which there are no such quotations, principally debt securities, are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, which take 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.

Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity.

Repurchase agreements

The Fund may enter into repurchase agreements. When the Fund enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is generally at least 102% of the repurchase amount. The Fund will take constructive receipt of all securities underlying the repurchase agreements it has entered into until such agreements expire. If the seller defaults, the Fund would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. The Fund may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser. Collateral for certain tri-party repurchase agreements is held at the custodian bank in a segregated account for the benefit of the Fund and the counterparty.

Investment transactions

Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment security transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Discounts/ premiums are amortized/accreted for financial reporting purposes. Realized gains and losses from investment transactions are recorded on an identified cost basis.

The Fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, commitment fees, facility fees, consent fees and prepayment fees. These fees are recorded on an accrual basis as income in the accompanying financial statements.

The Fund uses a specific identification method for determining realized gain or loss on investments for both financial and federal income tax reporting purposes.

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 appropriate net asset value of the respective classes. Distribution and service fees, if any, and transfer agent fees for each class are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rate(s) applicable to each class.

Guarantees and indemnifications

Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liability 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.

Annual report | Floating Rate Income Fund 31

Expenses

The majority of expenses are directly identifi-able to an individual fund. Trust expenses that are not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of expense and the relative size of the funds.

Line of credit

The Fund has entered into an agreement which enables it to participate in a $150 million unsecured committed line of credit with State Street Corporation. Borrowings will be made solely to temporarily finance the repurchase of capital shares. Interest is charged to the Fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.05% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit, is charged to the Fund on a prorated basis based on average net assets. For the period ended August 31, 2008, there were no borrowings under the line of credit.

Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Fund to make properly authorized payments. When such payments result in an overdraft, the Fund is obligated to repay the Custodian for any overdraft, including any costs or expenses associated with the overdraft. The Custodian has a lien and security interest in any Fund property, to the extent of any overdraft.

Loan participations and assignments

The Fund’s ability to receive payments of principal and interest and other amounts in connection with loans (whether through participations, assignments, or otherwise) will depend primarily on the financial condition of the borrower. The failure by the Fund to receive scheduled interest or principal payments on a loan or a loan participation, because of a default, bankruptcy or any other reason, would adversely affect the income of the Fund and would likely reduce the value of its assets. Even with secured loans, there is no assurance that the collateral securing the loan will be sufficient to protect a Fund against losses in value or a decline in income in the event of a borrower’s non-payment of principal or interest. In the event of a bankruptcy of a borrower, the Fund could experience delays or limitations in its ability to realize the benefits of any collateral securing the loan. Furthermore, the value of any such collateral may decline and may be difficult to liquidate. Because a significant percent of loans and loan participations are not generally rated by independent credit rating agencies, a decision by the Fund to invest in a particular loan or loan participation could depend exclusively on the subadviser’s credit analysis of the borrower, and in the case of a loan participation, the intermediary. The Fund may have limited rights to enforce the terms of an underlying loan. At August 31, 2008, the Fund held positions in unfunded loan commitments. The total principal amount and market value of unfunded loan commitments totaled $2,142,851 and $1,919,559, respectively. The coupon rate for unfunded loan commitments will be determined at time of settlement.

Federal income taxes

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

The Fund has adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109 (FIN 48), as of the Fund’s inception. FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not have a material impact on the Fund’s financial statements.

New accounting pronouncements

In September 2006, FASB Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. As of August 31, 2008, management does not believe the adoption

32 Floating Rate Income Fund | Annual report

of FAS 157 will have a material impact on the amounts reported in the financial statements.

In March 2008, FASB No. 161 (FAS 161), Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (FAS 133), was issued and is effective for fiscal years and interim reporting periods beginning after November 15, 2008. FAS 161 amends and expands the disclosure requirements of FAS 133 in order to provide financial statement users an understanding of a company’s use of derivative instruments, how derivative instruments are accounted for under FAS 133 and related interpretations and how these instruments affect a company’s financial position, performance, and cash flows. FAS 161 requires companies to disclose information detailing the objectives and strategies for using derivative instruments, the level of derivative activity entered into by the company, and any credit risk-related contingent features of the agreements. Management is currently evaluating the adoption of FAS 161 on the Fund’s financial statement disclosures.

Distribution of income and gains

The Fund records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Fund generally declares dividends daily and pays them monthly. Capital gains, if any, are distributed annually. The Fund’s net investment income is declared daily as dividends to shareholders of record as of the close of business on the preceding day, and distributed monthly. During the period ended August 31, 2008, the tax character of distributions paid was as follows: ordinary income $14,444,876. 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.

As of August 31, 2008, the components of distributable earnings on a tax basis included $454,137 of undistributed ordinary income.

Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund’s financial statements as a return of capital.

Capital accounts within financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Note 3
Risks and uncertainties
Concentration risk

The Fund may concentrate investments in a comparatively narrow segment of the economy. Consequently, such Fund may tend to be more volatile than other funds and the value of investments may tend to rise and fall more rapidly.

Floating rate loan liquidity risk

Floating rate loans are generally subject to legal or contractual restrictions on resale. The liquidity of floating rate loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual floating rate loans. During periods of infrequent trading, valuing a floating rate loan can be more difficult, and buying and selling a floating rate loan at an acceptable price can be more difficult and delayed. Difficulty in selling a floating rate loan can result in a loss.

Note 4
Management fee and transactions with affiliates and others

The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvis-ers to handle the investment of the assets of the Fund, subject to the supervision of the Trust’s Board of Trustees. As compensation for its services, the Adviser receives an advisory fee from the Trust. Under the Advisory Agreement, the Fund pays a daily management fee to the Adviser equivalent at an annual rate of 0.700% of the Fund’s aggregate daily net assets. Aggregate net assets include the net

Annual report | Floating Rate Income Fund 33

assets of the Fund and Floating Rate Income Trust, a series of John Hancock Trust. John Hancock Trust is an open-end investment company advised by JHIMS and distributed by an affiliate of JHIMS, John Hancock Distributors, LLC.

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 period ended August 31, 2008, were equivalent to an annual effective rate of 0.700% of the Fund’s average daily net assets.

The Adviser has agreed contractually to reimburse for certain fund level expenses that exceed 0.25% of the average annual net assets, or to make a payment to a specific class of shares of the Fund in an amount equal to the amount by which the expenses attributable to such class of shares (excluding taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses, and other extraordinary expenses not incurred in the ordinary course of the Fund’s business and fees under any agreement or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund) exceed the percentage of average annual net assets (on an annualized basis) attributable as follows: 1.20% for Class A, 1.95% for Class B, 1.95% for Class C and 0.85% for Class I. Accordingly, the expense reductions related to this expense limitation amounted to $6,610, $4,250, $4,920 and $3,726 for Class A, Class B, Class C and Class I, respectively, for the year ended August 31, 2008. This expense reimbursement shall continue in effect until December 31, 2008, and thereafter until terminated by the Adviser on notice to the Trust.

Pursuant to the Advisory 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, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each class at the time the expense was incurred.

The fund administration fees incurred for the period ended August 31, 2008, were equivalent to an annual effective rate of less than 0.01% of the Fund’s average daily net assets.

The Fund has a Distribution Agreement with the Distributor. The Fund has adopted Distribution Plans with respect to Class A, Class B and Class C, pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for the services it provides as distributor of shares of the Fund. Accordingly, the Fund makes daily payments to the Distributor at an annual rate not to exceed 0.30%, 1.00% and 1.00% of average daily net asset value of Class A, Class B and Class C, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority (formerly the National Association of Securities Dealers). Under the Conduct Rules, curtailment of a portion of the Fund’s 12b-1 payments could occur under certain circumstances.

Class A shares are assessed up-front sales charges. During the period ended August 31, 2008, the Distributor received net up-front sales charges of $14,961 with regard to sales of Class A shares. Of this amount, $3,159 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $11,802 was paid as sales commissions to unrelated broker-dealers.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (CDSC) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Fund in connection with the sale of Class B

34 Floating Rate Income Fund | Annual report

and Class C shares. During the year ended August 31, 2008, CDSCs received by the Distributor amounted to $46 for Class B shares and $252 for Class C shares.

The Fund has a transfer agency agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. For Class A, Class B and Class C shares, the Fund pays a monthly transfer agent fee at an annual rate of 0.05% of each class’ average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value. The Fund pays a monthly fee which is based on an annual rate of $17.50 for each Class A, Class B, Class C and Class I shareholder account.

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of Class A, Class B and Class C share average daily net assets. This agreement is effective until December 31, 2008. Signature Services reserves the right to terminate this limitation in the future. There were no transfer agent fee reductions for Class A, Class B and Class C shares, respectively, during the period ended August 31, 2008.

The Fund receives earnings credits from its transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Fund’s transfer agent fees and out-of-pocket expenses. During the period ended August 31, 2008, the Fund’s transfer agent fees and out-of-pocket expenses were reduced by $5 for transfer agent credits earned.

Class level expenses including the allocation of the transfer agent fees for the period ended August 31, 2008, were as follows:

Share class	Distribution and service fees		Transfer agent fees		Printing and postage fees		Blue sky fees
Class A	$	5,793	$	3,864	$	2,654	$	2,281
Class B		1,507		302		1,947		2,281
Class C		13,097		2,616		2,238		2,281
Class I		—		62		1,462		2,281
Class 1		—		—		—		—
Class NAV		—		—		—		—
Total	$	20,397	$	6,844	$	8,301	$	9,124

The Adviser and other subsidiaries of John Hancock USA owned 10,238, 10,201, 10,199, 10,256 and 10,261 shares of beneficial interest of Class A, Class B, Class C, Class I and Class 1 on August 31, 2008.

Mr. James R. Boyle is Chairman of the Adviser, as well as affiliated Trustee of the Fund, and is compensated by the Adviser and/or its affiliates. The compensation of unaffiliated Trustees is borne by the Fund. The unaffiliated Trustees may elect to defer, for tax purposes, their receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan. The Fund makes investments into other John Hancock funds, as applicable, to cover its liability for the deferred compensation. Investments to cover the Fund’s deferred compensation liability are recorded on the Fund’s books as an other asset. The deferred compensation liability and the related other asset are always equal and are marked to market on a periodic basis to reflect any income earned by the investments, as well as any unrealized gains or losses. The Deferred Compensation Plan investments had no impact on the operations of the Fund.

Note 5
Trustees’ fees

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

Annual report | Floating Rate Income Fund 35

Note 6
Fund share transactions

This listing illustrates the number of Fund shares sold, reinvested and repurchased during the period ended August 31, 2008, along with the corresponding dollar value.

	Period ended 8-31-081
	Shares			Amount
Class A shares
Sold		1,329,899		$	13,206,325
Distributions reinvested		9,729			95,892
Repurchased		(213,580	)		(2,097,127	)
Net increase		1,126,048		$	11,205,090
Class B shares
Sold		58,075		$	577,247
Distributions reinvested		600			5,918
Repurchased		(5,208	)		(51,078	)
Net increase		53,467		$	532,087
Class C shares
Sold		754,582		$	7,603,991
Distributions reinvested		4,583			45,305
Repurchased		(597,997	)		(5,866,593	)
Net increase		161,168		$	1,782,703
Class I shares
Sold		54,851		$	541,500
Distributions reinvested		587			5,779
Net increase		55,438		$	547,279
Class 1 shares
Sold		10,000		$	100,000
Distributions reinvested		377			3,720
Net increase		10,377		$	103,720
Class NAV shares
Sold		51,467,289		$	512,243,892
Distributions reinvested		1,441,398			14,251,483
Repurchased		(779,535	)		(7,686,341	)
Net increase		52,129,152		$	518,809,034
Net increase		53,535,650		$	532,979,913

¹ Period from 1-2-08 (commencement of operations) to 8-31-08.

Note 7
Purchases and sales of securities

Purchases and proceeds from sales or maturities of securities, other than short-term securities and obligations of the U.S. government, during the period ended August 31, 2008, aggregated $570,108,558 and $41,165,873, respectively.

36 Floating Rate Income Fund | Annual report

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of John Hancock Funds II,

In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Floating Rate Income Fund, (the Fund) at August 31, 2008 and the results of its operations, the changes in its net assets and the financial highlights for the period from January 2, 2008 (commencement of operations) to August 31, 2008, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit of these finan-cial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at August 31, 2008 by correspondence with the custodian and brokers and the application of alternative auditing procedures where securities purchased had not been received, provides a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 30, 2008

Annual report | Floating Rate Income Fund 37

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Fund, if any, paid during its taxable year ended August 31, 2008.

The Fund hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2008.

Shareholders will be mailed a 2008 U.S. Treasury Department Form 1099-DIV in January 2009. This will reflect the total of all distributions that are taxable for calendar year 2008.

38 Floating Rate Income Fund | Annual report

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

At its meeting on June 27, 2008, the Board, including all of the Independent Trustees, approved the sub-subadvisory agreement (the Sub-Subadvisory Agreement) between Western Asset Management Company (the Subadviser) and Western Asset Management Company Limited (the Sub-Subadviser) relating to the Floating Rate Income Fund (the Fund), a series of John Hancock Funds II (the Trust).

This section describes the evaluation by the Board of Trustees of the Sub-Subadvisory Agreement.

Evaluation by the Board of Trustees

The Board, including the Independent Trustees, is responsible for selecting the Trust’s Adviser, approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust (the Funds) and approving the Trust’s advisory and subadvisory agreements (and any sub-subadvisory agreements), their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 are:

1.	the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;
2.	the investment performance of the Funds and their subadvisers;
3.	the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;
4.	the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and
5.	comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any sub-subadvisory agreements) with entities that are not affiliated with the Adviser, the Board believes that, in view of the Trust’s manager-of-managers advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds and the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (Material Relationships).

In making its determination with respect to the factors that it considers in evaluating the Sub-Subadvisory Agreement, the Board reviewed or considered:

(1)	that the Sub-Subadviser has extensive experience and demonstrated skills as a manager;
(2)	that the Sub-Subadviser is an affiliate of the Subadviser;

Annual report | Floating Rate Income Fund 39

(3)	that the Sub-Subadvisory Agreement between the Sub-Subadviser and the Subadviser is being effected in order to permit the Subadviser to trade certain non-dollar denominated foreign securities for the Fund;
(4)	the investment performance of other Trust or John Hancock Trust funds where the Sub-Subadviser also manages certain assets for these funds;
(5)	the proposed sub-subadvisory fee for the Fund; and
(6)	information relating to the nature and scope of Material Relationships and their significance to the Trust’s adviser and the Sub-Subadviser.
The Board’s decision to approve the Sub-Subadvisory Agreement was based on a number of determinations, including the following:
(1)	The Sub-Subadvisory Agreement will permit the Subadviser to trade certain non-dollar denominated foreign securities for the Fund, which may enhance the performance of the Fund;
(2)	The Sub-Subadviser may generally be expected to provide at least the same level and quality of management services under the Sub-Subadvisory Agreement as the Subadviser does under the Subadvisory Agreement; and
(3)	The subadvisory fee under the Sub-Subadvisory Agreement: (i) is paid by the Subadviser and not by the Fund; and (ii) will not result in any advisory fee increase with respect to the Fund.

40 Floating Rate Income Fund | Annual report

Trustees and Officers

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

Independent Trustees

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
Charles L. Bardelis,2 Born: 1941	2008	212

Director, Island Commuter Corp. (Marine Transport). Trustee of John Hancock Trust (since 1988) and former Trustee of John Hancock Funds III (2005–2006).

Peter S. Burgess,² Born: 1942 2008 212

Consultant (financial, accounting and auditing matters) (since 1999); Certified Public Accountant. Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director of the following publicly traded companies: PMA Capital Corporation (since 2004) and Lincoln Educational Services Corporation (since 2004). Trustee of John Hancock Trust (since 2005), and former Trustee of John Hancock Funds III (2005–2006).

Elizabeth G. Cook,³ Born: 1937 2008 212

Expressive Arts Therapist, Massachusetts General Hospital (September 2001 to June 2007); Expressive Arts Therapist, Dana Farber Cancer Institute (September 2000 to January 2004); Trustee of John Hancock Trust (since 2005) and former Trustee of John Hancock Funds III (2005–2006).

Theron S. Hoffman,⁶ Born: 1947 2008 212

Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, T. Hoffman Associates, LLC (since 2003); Director, The Todd Organization (since 2003); President, Westport Resources Management (2006–2008); Partner/Operating Head & Senior Managing Director, Putnam Investments (2000–2003).

Hassell H. McClellan,³ Born: 1945 2008 212

Associate Professor, The Graduate School of The Wallace E. Carroll School of Management, Boston College. Trustee of John Hancock Trust (since 2005), former Trustee of John Hancock Funds III (2005–2006) and Trustee of Phoenix Edge Series Fund (since 2008).

James M. Oates,² Born: 1946 2008 212

Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman, Emerson Investment Management, Inc. (since 2000); Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2006). Director of the following publicly traded companies: Stifel Financial (since 1996); Investor Financial Services Corporation (1995–2007); Investors Bank and Trust (since 1995) and Connecticut River Bancorp, Director (since 1998). Trustee of John Hancock Funds II (since 2005); and Former Trustee of John Hancock Funds III (2005–2006); Director, Phoenix Mutual Funds (since 1998).

Annual report | Floating Rate Income Fund 41

Independent Trustees (continued)

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
Steven M. Roberts,6 Born: 1944	2008	212

Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Deputy Director, Board of Governors of the Federal Reserve System (2005–2008); Principal, KPMG (1987–2004).

Trustee Emeritus

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
John D. Richardson,4,5 Born: 1938	2008	212

Trustee Emeritus⁵ (since December 2006); Trustee (prior to December 2006).

Former Trustee of JHT (Retired, December 14, 2006). Former Senior Executive Vice President, Office of the President, MFC, February 2000 to March 2002 (Retired, March, 2002); Executive Vice President and General Manager, U.S. Operations, Manulife Financial, January 1995 to January 2000.

1	Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his/her successor is duly elected and qualified or until he/she dies, retires, resigns, is removed or becomes disqualified.
2	Member of Audit Committee.
3	Member of Compliance Committee.
4	Prior to 1997, Mr. Richardson was a Trustee of Manulife Series Fund, Inc., which merged into JHT on December 31, 1996.
5	Mr. Richardson retired as Trustee effective December 14, 2006. On such date, Mr. Richardson became a non-voting Trustee Emeritus.
6	Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

42 Floating Rate Income Fund | Annual report

Non-Independent Trustees^1,2

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
James R. Boyle,3 Born: 1959	2008	267

Executive Vice President, Manulife Financial Corporation (since 1999); Director and President, John Hancock Variable Life Insurance Company (since 2007); Director and Executive Vice President, John Hancock Life Insurance Company (since 2004); Chairman and Director, John Hancock Advisers, LLC (the Adviser), John Hancock Funds, LLC (John Hancock Funds) and The Berkeley Financial Group, LLC (The Berkeley Group) (holding company) (since 2005); Chairman and Director, John Hancock Investment Management Services, LLC (since 2006); Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (until 2004).

Grace K. Fey,^4,5 Born: 1946 2008 212

Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, Grace Fey Advisors (since 2007); Director & Executive Vice President, Frontier Capital Management Company (1988–2007).

1	Each trustee serves until resignation, retirement age or until his or her successor is elected.
2	Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
3	Mr. Boyle is an “interested person” (as defined in the 1940 Act) due to his prior position with Manulife Financial Corporation (or its affiliates), the ultimate controlling parent of the Adviser.
4	Ms. Fey was appointed by the Board as Trustee on September 26, 2008.
5	Ms. Fey is an “interested person” (as defined by the 1940 Act) due to a deferred compensation arrangement with her former employer, Frontier Capital Management Company, which is a subadviser of certain funds of John Hancock Funds II and John Hancock Trust.

Principal officers who are not Trustees

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Officer of Fund since
Keith F. Hartstein, Born: 1956	2008

President and Chief Executive Officer

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

Thomas M. Kinzler, Born: 1955 2008

Secretary and Chief Legal Officer

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

Annual report | Floating Rate Income Fund 43

Principal officers who are not Trustees (continued)

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Officer of Fund since
Francis V. Knox, Jr., Born: 1947	2008

Chief Compliance Officer

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

Charles A. Rizzo, Born: 1957 2008

Chief Financial Officer

Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Assistant Treasurer, Goldman Sachs Mutual Fund Complex (registered investment companies) (2005–2007); Vice President, Goldman Sachs (2005–2007); Managing Director and Treasurer of Scudder Funds, Deutsche Asset Management (2003–2005); Director, Tax and Financial Reporting, Deutsche Asset Management (2002–2003); Vice President and Treasurer, Deutsche Global Fund Services (1999–2002).

Gordon M. Shone, Born: 1956 2008

Treasurer

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

John G. Vrysen, Born: 1955 2008

Chief Operating Officer

Senior Vice President, Manulife Financial Corporation (since 2006); Senior Vice President, John Hancock Life Insurance Company (since 2004); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since 2007); Director, Executive Vice President and Chief Operating Officer, John Hancock Investment Management Services, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Director, Executive Vice President and Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (2005–2007); Director, Executive Vice President and Chief Financial Officer, John Hancock Investment Management Services, LLC (2005–2007); Executive Vice President and Chief Financial Officer, MFC Global (U.S.) (2005–2007); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005–2007); Vice President and General Manager, John Hancock Fixed Annuities, U.S. Wealth Management (2004–2005); Vice President, Operations, Manulife Wood Logan (2000–2004).

The business address for all Trustees and Officers is 601 Congress Street, Boston, Massachusetts 02210-2805.

The Statement of Additional Information of the Fund includes additional information about members of the Board of Trustees of the Fund and is available without charge, upon request, by calling 1-800-225-5291.

44 Floating Rate Income Fund | Annual report

More information

Trustees

James R. Boyle†

Grace K. Fey†

Charles L. Bardelis*

Peter S. Burgess*

Elizabeth G. Cook**

Theron S. Hoffman

Hassell H. McClellan**

James M. Oates*

John D. Richardson, Trustee Emeritus

Steven M. Roberts

  *Members of the Audit Committee

**Members of the Compliance Committee

  †Non-Independent Trustees

Officers

Keith F. Hartstein

President and Chief Executive Officer

Thomas M. Kinzler

Secretary and Chief Legal Officer

Francis V. Knox, Jr.

Chief Compliance Officer

Charles A. Rizzo

Chief Financial Officer

Gordon M. Shone

Treasurer

John G. Vrysen

Chief Operating Officer

Investment adviser

John Hancock Investment Management

   Services, LLC

Subadviser

Western Asset Management Company

Sub-Subadviser

Western Asset Management Company Limited

Principal distributor

John Hancock Funds, LLC

Custodian

State Street Bank & Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

Independent registered

public accounting firm

PricewaterhouseCoopers LLP

Additional information about your fund is available without charge in several ways. As required by the SEC, you can access proxy voting information and quarterly portfolio information on your fund. The proxy voting information includes a description of proxy voting policies, procedures and information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30. The quarterly portfolio information that includes a complete list of the fund’s holdings for the first and third quarters of the fund’s fiscal period is filed on Form N-Q. You have access to this information:

By phone

1-800-225-5291

On the fund’s Website

www.jhfunds.com

At the SEC

www.sec.gov
1-800-SEC-0330
SEC Public Reference Room

You can also contact us:

Regular mail

John Hancock Signature Services, Inc.
P.O. Box 9510
Portsmouth, NH 03802-9510

Express mail

John Hancock Signature Services, Inc.
Mutual Fund Image Operations
164 Corporate Drive
Portsmouth, NH 03801

Month-end portfolio holdings are available at www.jhfunds.com.

Annual report | Floating Rate Income Fund 45

Why John Hancock Funds?

For more than three decades, John Hancock Funds has been helping individual, corporate and institutional clients reach their most important financial goals. With so many fund companies to choose from, why should you invest with us?

A name you know and trust

When you invest with John Hancock Funds, you are investing with one of the most recognized and respected names in the financial services industry. Our parent company has been helping individuals and institutions increase and protect wealth since 1862.

Solutions across the investing spectrum

We offer equity, income, international, sector and asset allocation investment solutions managed by leading institutional money managers. Each of our funds utilizes a disciplined, team approach to portfolio management and research, leveraging the expertise of seasoned investment professionals.

Committed to you

Our shareholders come first. We work hard to provide you with the products you need to build a solid financial foundation. We’re proud to offer you award-winning services and tools, like the www.jhfunds.com Web site, to help you every step of the way.

Not part of the annual report

For immediate insight and answers,
turn to www.jhfunds.com

Discover the new and improved www.jhfunds.com.

§	View accounts, statements and fund information.
§	Access college and retirement planning calculators and investment education.
§	Gain investment ideas, expand your knowledge and become a more informed investor.

This is just the beginning of how much you can do.

Now is the ideal time to experience our Web site that received the following recognition in 2006:

	“Best Innovation: Redesigned Web Site” by the Mutual Fund   Education Alliance.
	“Outstanding Web Site” by the Web Marketing Association.
	“Creative excellence on the Web, Silver Award winner” by W3.

Discover convenience and comprehensive resources at one easy-to-access location. Your financial professional can steer you to the tools that will help you the most and enable you to transform your knowledge into action.

See how far www.jhfunds.com can take you!

Not part of the annual report

At the heart of John Hancock Funds is
AWARD-WINNING SERVICE

How our exceptional customer service can benefit you:

1	We’re committed to providing you with answers, solving problems and saving you time.
2	We’re ready to go one step further by offering a range of resources so you can build your knowledge and expand your skills.
3	We’re determined to regularly exceed your expectations.

Experience award-winning, world-class service. Consider the recognition that we received in 2006.
§	John Hancock Signature Services, Inc. (JHSS) is the transfer and shareholder services agent for John Hancock Funds. JHSS was awarded “Best-In-Class” honors and “5-Star” performer status for telephone customer service for all of 2006 from the National Quality Review.
§	Winner of Source Media’s Fund Operations Awards in the category of Efficiencies/Streamlining.	Let us demonstrate the difference that world-class service can make.
§	One of four finalists for Best Customer Service Organization, Financial Services at The American Business Awards, “The Stevies.”™

Call our customer service representatives at 1-800-225-5291
Monday to Friday 8:00 A. M. – 7:00 P. M., ET

It will be our pleasure and privilege to help you.

Not part of the annual report

JOHN HANCOCK FAMILY OF FUNDS

DOMESTIC EQUITY

Balanced Fund

Classic Value Fund

Classic Value Fund II

Classic Value Mega Cap Fund

Growth Opportunities Fund

Large Cap Equity Fund

Large Cap Select Fund

Mid Cap Equity Fund

Optimized Value Fund

Rainier Growth Fund

Small Cap Fund

Small Cap Equity Fund

Small Cap Intrinsic Value Fund

Sovereign Investors Fund

U.S. Core Fund

U.S. Global Leaders Growth Fund

Value Opportunities Fund

ASSET ALLOCATION

TARGET RISK

Lifestyle Aggressive Portfolio

Lifestyle Balanced Portfolio

Lifestyle Conservative Portfolio

Lifestyle Growth Portfolio

Lifestyle Moderate Portfolio

TARGET DATE

Lifecycle 2045 Portfolio

Lifecycle 2040 Portfolio

Lifecycle 2035 Portfolio

Lifecycle 2030 Portfolio

Lifecycle 2025 Portfolio

Lifecycle 2020 Portfolio

Lifecycle 2015 Portfolio

Lifecycle 2010 Portfolio

RETIREMENT INCOME

Lifecycle Retirement Portfolio

Retirement Distribution Portfolio

Retirement Rising Distribution Portfolio

GLOBAL/INTERNATIONAL EQUITY

Global Opportunities Fund

Global Shareholder Yield Fund

Greater China Opportunities Fund

International Allocation Portfolio

International Classic Value Fund

International Core Fund

International Growth Fund

SPECIALTY

Financial Industries Fund

Global Real Estate Fund

Health Sciences Fund

Regional Bank Fund

INCOME

Bond Fund

Floating Rate Income Fund

Government Income Fund

High Yield Fund

Investment Grade Bond Fund

Strategic Income Fund

TAX-FREE INCOME

California Tax-Free Income Fund

High Yield Municipal Bond Fund

Massachusetts Tax-Free Income Fund

New York Tax-Free Income Fund

Tax-Free Bond Fund

MONEY MARKET

Money Market Fund

CLOSED-END

Bank and Thrift Opportunity Fund

Income Securities Trust

Investors Trust

Patriot Premium Dividend Fund II

Preferred Income Fund

Preferred Income II Fund

Preferred Income III Fund

Tax-Advantaged Dividend Income Fund

Tax-Advantaged Global Shareholder Yield Fund

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

Not part of the annual report

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.	3280A 8/08
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	10/08

John Hancock

Optimized Value Fund

Annual Report

8.31.08

CEO corner

TABLE OF CONTENTS
Your fund at a glance	page 1
Managers’ report	page 2
ANNUAL REPORT
Discussion of Fund performance	page 6
A look at performance	page 7
Your expenses	page 9
Portfolio summary	page 11
Fund’s investments	page 12
Financial statements	page 16
Notes to financial statements	page 26
Trustees and Officers	page 40
More information	page 44

To Our Shareholders,

The financial markets battled a laundry list of ills and produced negative results in a volatile 12 months ended August 31, 2008. The worst U.S. housing slump since the Great Depression, combined with a subprime mortgage-induced credit crunch, an anemic economy bordering on recession and skyrocketing oil prices for much of the period, sent the markets tumbling into bear market territory in early July. For the year ended August 31, 2008, the Standard & Poor’s 500 Index returned –11.14%, led down by financial stocks, which were the most severely impacted by the credit crisis. The pain was felt in financial markets around the world, amid infl ation fears and concerns about the spillover effects of the widening U.S. credit woes.

Bonds held up much better in the 12-month period, as the Federal Reserve Board cut interest rates seven times between September 2007 and April 2008 to help bolster the economy and made other efforts to provide liquidity to the credit markets. For the 12 months ended August 31, 2008, the Lehman Brothers U.S. Aggregate Index — a broad measure of bond market performance — returned 5.86%. It’s worth noting that the10-year return for bonds, including Treasuries, has now eclipsed the 10-year return of stocks, a very rare occurrence. In every instance when this has happened in the past, stocks went on to outperform both bonds and Treasuries over the ensuing 10-year period. Of course, there’s no guarantee that that will occur this time.

Just weeks after the Fund’s reporting period ended, volatility spiked even further, as the credit markets virtually ground to a halt amid investors’ growing concerns about the extent and duration of financial companies’ mortgage losses — and about their ability to carry on. The fears mounted in a period of extraordinary volatility starting in mid-September in response to the sale, bankruptcy, takeover or reorganization of numerous renowned financial institutions. Top among them was the U.S. government’s takeover of mortgage giants Fannie Mae and Freddie Mac and insurance giant AIG. In reaction, the Dow Jones Industrial Average experienced wild swings — up and down days of several hundred points a day.

Even a much-anticipated $700 billion rescue package approved in early October by the U.S. government to shore up the financial system and restore investor confidence did little to calm the markets. The contagion spread overseas, where markets worldwide plunged as European and other foreign governments began taking dramatic steps to bolster their ailing banks and avoid a global recession.

Recent events, as trying as they have been, are a vivid example of the importance of keeping a long-term perspective and sticking to your investment goals. With negative sentiment abounding and the prospect for continued volatility quite real, the impulse to flee is understandable. But we urge you to stay the course and keep a well-diversified portfolio, along with a longer-term investment perspective. Leaving the market can mean missing out on the inevitable moves up. Working with your investment professional on your long-term plan is especially critical in turbulent times to avoid making emotional decisions.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of October 21, 2008. They are subject to change at any time.

Not part of the annual report

Your fund at a glance

The Fund seeks long-term capital appreciation by normally investing at least 65% of its total assets in equity securities of U.S. companies with the potential for long-term growth of capital. These companies have a market capitalization range at the time of investment equal to the range of the Fund’s benchmark Russell 1000 Value Index. The subadviser uses both qualitative and quantitative analysis to determine the best investment values, emphasizing securities that may have been undervalued by the market.

          Over the last twelve months

Ø	The U.S. stock market slid sharply, as the economy slowed and credit problems mounted.
Ø	Financials, the largest sector in the Russell 1000 Value Index, took the hardest hit of all, but losses were also sizable in the durables, technology, telecommunications and consumer services sectors.
Ø	The Fund lagged the Russell Index, hurt by disappointing stock selection in financials, capital goods and energy.

          John Hancock Optimized Value Fund

          Fund performance for the year ended August 31, 2008.

	Total returns for the Fund are at net asset value with all distributions reinvested. These returns do not reflect the deduction of the maximum sales charge, which would re duce the performance shown above.
1	From inception December 31, 2007 through August 31, 2008.
	Past performance is no guarantee of future results.

Top 10 holdings
Exxon Mobil Corp.	3.7	%
ConocoPhillips	2.9	%
Williams Companies, Inc.	2.9	%
General Electric Company	2.6	%
Yum! Brands, Inc.	2.5	%
Embarq Corp.	2.4	%
CenturyTel, Inc.	2.2	%
State Street Corp.	2.0	%
AT&T, Inc.	1.9	%
Abbott Laboratories	1.7	%

As a percentage of net assets on August 31, 2008.

Not part of the annual report 1

Managers’ report

John Hancock
Optimized Value Fund

U.S. stocks were down sharply for the year ended August 31, 2008.

Losses were especially dramatic among financial services stocks, as well-publicized problems in the credit markets slashed earnings expectations for companies across the sector. Slowing U.S. economic growth also raised concerns about weakening trends for consumer and corporate spending, leading to sizable declines in consumer-related and technology stocks. Only a few sectors produced modest gains. Energy stocks benefited from rising oil and gas prices, while utilities gained as investors searched for defensive investments as the economy continued to slow. Companies with foreign exposure also held up well as the U.S. dollar weakened. The Standard & Poor’s 500 Index closed the 12-month period with a –11.14% return.

Review of performance

The Russell 1000 Value Index, which tracks the performance of large-cap stocks with value characteristics, returned –14.66% over the 12 months ended August 31, 2008. A sizable portion of these losses came from the financial services sector, which represented between 25% and 30% of the index’s assets and returned –37% for the year. During the same period, John Hancock Optimized Value Fund’s Class 1 and Class NAV shares returned –18.77% and –18.82%, respectively, at net asset value. The Morningstar, Inc. large value category average return was –14.62%.¹ The Fund’s Class A, Class B, Class C and Class I shares,

SCORECARD

INVESTMENT		PERIOD’S PERFORMANCE … AND WHAT’S BEHIND THE NUMBERS
XL Capital	▼	Exposure to beleaguered bond insurance business
Trinity Industries	▼	Pressure from slowing economy on orders
Embarq	▲	Improved free cash flows, increased dividend

2 Not part of the annual report

From the Portfolio Management Team

MFC Global Investment Management (U.S.A.) Limited

which were launched on December 31, 2007 returned –13.56%, –14.03%, –14.03% and –13.36%, respectively, for the eight months ended August 31, 2008. Over the same period, the Russell 1000 Value Index returned –12.42% and the Morningstar large value peer group returned –12.71%.

“U.S. stocks were down sharply for the year ended August 31, 2008.”

Disappointment from valuation factor

Stock selection was disappointing due to weak performance from the valuation factor in our quantitative model. We use this model, in combination with fundamental analysis, to help us find attractively priced stocks with strong long-term return prospects. The model ranks the 1,000 largest and most liquid stocks on the New York Stock Exchange, based on several key factors. One of the most important factors is valuation, which assesses stock prices relative to earnings and other measures based on consensus reports from analysts. The valuation factor, however, faltered in the financial services sector because analysts were slow to lower earnings estimates. The fact that financials were such a large weighting in both the index and the Fund further exacerbated the impact of the valuation-related problems.

Negative stock selection from financials

The market’s worst performers over the 12-month period were financials, including mortgage and bond insurers, brokerage firms, banks with sub-prime mortgage loan exposure and real estate investment trusts. Among the Fund’s biggest detractors were E*Trade Financial Corp., a retail discount broker; First Marblehead Corp., a student loan company; and XL Capital, Ltd., an insurer. E*Trade suffered from its exposure to the subprime mortgage market. As that market collapsed, the company was forced to raise capital by issuing new shares, diluting the value of existing

Not part of the annual report 3

shares. First Marblehead, which packages student loans and turns them into securities, found its business drying up as the credit markets began to tighten. XL Capital, an insurer, suffered from its stake in SCA Capital, a bond insurer that came under tremendous pressure as the mortgage-related products they insured declined in credit quality. We sold all three holdings before period end.

Further disappointments from capital goods and energy

Stock selection within capital goods and energy also detracted from 12-month returns. Among the weakest performers was Terex Corp., a construction equipment company hurt by the slowing global economy. Trinity Industries, Inc., which supplies railroad cars, fell dramatically in late 2007 as investors anticipated that the weak economy would hurt demand for its products. We exited the position. In the energy sector, we were underexposed on average to Occidental Petroleum Corp., a globally diversified exploration-and-production company, which benefited from rising commodity prices. Instead, our model directed us toward more attractively valued stocks, including refiners like Valero Energy Corp. and Western Refining, Inc. Unfortunately, crude oil prices rose faster than prices at the pumps, which hurt refiners’ profit margins. We sold both names. Some of these losses were offset by gains from natural gas drillers, including Unit Corp., whose land-based drilling business surged along with rising commodity prices.

SECTOR DISTRIBUTION2
Financial	25	%
Energy	18	%
Consumer Non-cyclical	17	%
Industrial	15	%
Communications	9	%
Consumer Cyclical	6	%
Technology	5	%
Utilities	4	%
Short-term investments & other	1	%

Leadership from telecom and health care

The Fund’s model worked well in telecom and health care, directing us toward positive performers and away from detractors. In telecom, not owning Sprint Nextel Corp., a well-known wireless company that is a large index component, helped as the stock plunged. The Fund further benefited from stakes in Embarq Corp. and CenturyTel, Inc., rural wireline carriers, which benefited as improved free cash flows led each company to increase its dividends. In health care, our underweight in large pharmaceuticals companies aided returns, as many were pressured by growing competition from generic drugs. We also did well by avoiding health insurers, which were hurt by slowing subscriber growth rates. Certain health care holdings also aided returns,

4 Not part of the annual report

“Stock selection was disappointing due to weak performance from the valuation factor in our quantitative model.”

including Baxter International, Inc., a pharmaceuticals and medical equipment company that generated strong earnings growth. Elsewhere, Herbalife, Ltd., a natural vitamin and supplement company that is not in the Russell index, rallied nicely, buoyed by successful new product releases as well as mounting global interest in health products.

Outlook

It is clear that the U.S. is going through a lengthy period of deleveraging. Wall Street is being forced to consolidate and sell assets. Capital requirements will rise and regulation will tighten. These steps over time will help restore global confidence in the U.S. financial sector, which will have broader positive implications to the economy as a whole.

In periods of extreme uncertainty, fear can run rampant, but these times can also provide opportunities. We are constructive on the U.S. markets in the long term; however, the events that caused the current credit crisis and the proscribed remedies will take time to work through the system. As a result, we do expect to face ongoing volatility in the near term. Our plan is to use our disciplined investment strategy to help us find companies that can generate earnings through a tough economic environment and weak credit markets.

This commentary reflects the views of the portfolio management team through the end of the Fund’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.

Past performance is no guarantee of future results.

Sector 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.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
2	As a percentage of net assets on August 31, 2008.

Not part of the annual report 5

Discussion of Fund performance

By MFC Global Investment Management (U.S.A.) Limited

U.S. stocks were down sharply for the year ended August 31, 2008. Losses were especially dramatic among financial services stocks, as well-publicized problems in the credit markets slashed earnings expectations for companies across the sector. Slowing U.S. economic growth also hurt consumer-related and technology stocks. Only a few sectors produced modest gains. Energy stocks benefited from rising oil and gas prices, while utilities gained as investors searched for defensive investments as the economy slowed. Companies with foreign exposure also held up well as the U.S. dollar weakened. The Standard & Poor’s 500 Index closed the 12-month period with a –11.14% return.

“U.S. stocks were down sharply for the year ended August 31, 2008.”

The Russell 1000 Value Index, which had between 25% and 30% of its assets in the beleaguered financial sector, returned –14.66% for the same year. The Morningstar, Inc. large value category average return was –14.62%. By comparison, John Hancock Optimized Value Fund’s Class 1 and Class NAV shares returned –18.77% and –18.82%, respectively, at net asset value. The Fund’s Class A, Class B, Class C and Class I shares, which were launched on December 31, 2007, returned –13.56%, –14.03%, –14.03% and –13.36%, respectively, at net asset value for the eight months ended August 31, 2008. For the 12-month period, the Fund was hurt by disappointing stock selection, especially in financials. Detractors included XL Capital Corp., an insurer, hurt by its exposure to a bond insurer. The Fund lost further ground versus the Russell 1000 Value Index from capital goods and energy. Trinity Industries, Inc., a rail car manufacturer, fell sharply as the economy slowed. We sold both names before period end. Stock selection in telecommunications and health care was positive. Winners included Embarq Corp., a rural wireline carrier, whose improved cash flows led to increased dividends, and Baxter International, Inc., a pharmaceuticals and medical equipment company that generated strong earnings growth.

This commentary reflects the views of the portfolio management team through the end of the Fund’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.

Sector 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.

6 Optimized Value Fund | Annual report

A look at performance

For the periods ended August 31, 2008

		Average annual returns (%) with maximum sales charge (POP)				Cumulative total returns (%) with maximum sales charge (POP)
Class	Inception date	1-year	5-year	10-year	Since inception	1-year	5-year	10-year	Since inception
A	12-31-07	—	—	—	—	—	—	—	–17.89
B	12-31-07	—	—	—	—	—	—	—	–18.33
C	12-31-07	—	—	—	—	—	—	—	–14.89
I1	12-31-07	—	—	—	—	—	—	—	–13.36
11	10-15-05	–18.77	—	—	2.53	–18.77	—	—	7.45
NAV1	10-15-05	–18.82	—	—	2.55	–18.82	—	—	7.52

Performance figures assume all distributions are reinvested. Public offering price (POP) figures reflect maximum sales charges on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1 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 charge is 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 December 31, 2008. The net expenses are as follows: Class A — 1.29%, Class B — 1.99%, Class C — 1.99%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.34%, Class B — 2.04%, Class C — 2.04%. For the other classes, the net expenses equal the gross expenses and are as follows: Class I — 0.74%, Class 1 — 0.74%, Class NAV — 0.69%.

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 Portfolio’s Web site at www.jhfunds.com.

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

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

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

Annual report | Optimized Value Fund 7

A look at performance

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Optimized Value Fund Class NAV² shares for the period indicated. For comparison, we’ve shown the same investment in the Russell 1000 Value Index.

Class	Period beginning		Without sales charge		With maximum sales charge		Index
A		12-31-07	$	8,644	$	8,211	$	8,758
B		12-31-07		8,597		8,167		8,758
C		12-31-07		8,597		8,511		8,758
I2		12-31-07		8,664		8,664		8,758
12		10-15-05		10,745		10,745		11,311

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 A, Class B, Class C, Class I and Class 1 shares, respectively, as of August 31, 2008. 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.

Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

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.

1	NAV represents net asset value.
2	For certain types of investors as described in the Fund’s Class NAV, Class I and Class 1 share prospectuses.
8	Optimized Value Fund | Annual report

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 your fund’s actual ongoing operating expenses, and is based on your fund’s actual return. It assumes an account value of $1,000.00 on March 1, 2008, with the same investment held until August 31, 2008.

	Account value on 3-1-08		Ending value on 8-31-08		Expenses paid during period ended 8-31-08		1
Class A	$	1,000.00	$	949.40	$	6.32
Class B		1,000.00		945.60		9.68
Class C		1,000.00		946.40		9.69
Class I		1,000.00		950.90		4.22
Class 1		1,000.00		952.30		3.63
Class NAV		1,000.00		951.60		3.38

Together with the value of your account, you may use this information to estimate the operating expenses that you paid over the period. Simply divide your account value at August 31, 2008, 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:

Example

Annual report | Optimized Value Fund 9

Your expenses

Hypothetical example for comparison purposes

This table allows you to compare your 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 your fund’s actual return). It assumes an account value of $1,000.00 on March 1, 2008, with the same investment held until August 31, 2008. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

	Account value on 3-1-08		Ending value on 8-31-08		Expenses paid during period ended 8-31-08		1
Class A	$	1,000.00	$	1,018.70	$	6.55
Class B		1,000.00		1,015.20		10.03
Class C		1,000.00		1,015.20		10.03
Class I		1,000.00		1,020.80		4.37
Class 1		1,000.00		1,021.40		3.76
Class NAV		1,000.00		1,021.70		3.51

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

¹ Expenses are equal to the Fund’s annualized expense ratio of 1.29%, 1.98%, 1.98%, 0.86%, 0.74% and 0.69% for Class A, Class B, Class C, Class I, Class 1 and Class NAV, respectively, multiplied by the average account value over the period, multiplied by number of days in the period, and divided by 366 (to reflect the one-half year period).

10 Optimized Value Fund | Annual report

Portfolio summary

Top 10 holdings1
Exxon Mobil Corp.	3.7	%
ConocoPhillips	2.9	%
Williams Companies, Inc.	2.9	%
General Electric Company	2.6	%
Yum! Brands, Inc.	2.5	%
Embarq Corp.	2.4	%
CenturyTel, Inc.	2.2	%
State Street Corp.	2.0	%
AT&T, Inc.	1.9	%
Abbott Laboratories	1.7	%

Sector distribution1
Financial	25	%
Energy	18	%
Consumer Non-cyclical	17	%
Industrial	15	%
Communications	9	%
Consumer Cyclical	6	%
Technology	5	%
Utilities	4	%
Short-term investments & other	1	%

¹ As a percentage of net assets on August 31, 2008.

Annual report | Optimized Value Fund 11

Fund’s investments

FINANCIAL STATEMENTS

Securities owned by the Fund on 8-31-08

This schedule is divided into two main categories: common stocks and short-term investments. Common stocks are further broken down by industry group. Short-term investments, which represent the Fund’s cash position, are listed last.

Issuer	Shares		Value
Common stocks 99.45%			$	758,927,271
(Cost $761,598,874)
Aerospace 2.12%				16,199,553
Goodrich Corp.		141,238	$	7,238,447
Lockheed Martin Corp.		76,959		8,961,106
Agriculture 1.57%				11,943,059
Bunge, Ltd.		85,980		7,683,173
The Mosaic Company		39,909		4,259,886
Air Travel 0.18%				1,328,515
Delta Air Lines, Inc. *		163,409		1,328,515
Banking 4.44%				33,884,170
Bank of America Corp.		333,082		10,372,173
Hudson City Bancorp, Inc.		283,663		5,230,746
Unibanco — Uniao De Bancos Brasileiros SA, ADR *		92,832		11,098,994
Washington Federal, Inc.		416,846		7,182,257
Buildings 0.38%				2,907,361
Desarrolladora Homex SA de CV *		57,401		2,907,361
Business Services 1.33%				10,166,301
Alliance Data Systems Corp. *		158,255		10,166,301
Chemicals 0.67%				5,098,876
OM Group, Inc. *		137,436		5,098,876
Computers & Business Equipment 1.85 %				14,108,145
Hewlett-Packard Company		153,631		7,208,367
International Business Machines Corp.		56,681		6,899,778
Cosmetics & Toiletries 2.91%				22,194,700
Colgate-Palmolive Company		119,527		9,087,638
Procter & Gamble Company		187,861		13,107,062
Crude Petroleum & Natural Gas 3.19%				24,369,528
Apache Corp.		75,228		8,604,579
Occidental Petroleum Corp.		98,721		7,834,498
XTO Energy, Inc.		157,319		7,930,451

12 Optimized Value Fund | Annual report See notes to financial statements

FINANCIAL STATEMENTS

Issuer	Shares		Value
Electrical Equipment 1.04%			$	7,935,824
Cooper Industries, Ltd., Class A		166,579		7,935,824
Electrical Utilities 3.98%				30,386,234
DPL, Inc.		375,402		9,317,478
Edison International		245,296		11,263,992
Mirant Corp. *		331,466		9,804,764
Electronics 1.32%				10,049,862
Amphenol Corp., Class A		211,487		10,049,862
Financial Services 11.74%				89,609,511
Bank of New York Mellon Corp.		283,782		9,821,695
Federated Investors, Inc., Class B		277,849		9,291,271
Goldman Sachs Group, Inc.		69,278		11,359,514
JP Morgan Chase & Company		257,841		9,924,300
MasterCard, Inc., Class A		36,101		8,756,297
State Street Corp.		223,726		15,139,538
TD Ameritrade Holding Corp. *		637,910		13,032,501
Visa, Inc.		65,903		5,002,038
Wells Fargo & Company		240,580		7,282,357
Gas & Pipeline Utilities 2.90%				22,112,823
Williams Companies, Inc.		715,857		22,112,823
Healthcare Products 4.95%				37,771,839
Baxter International, Inc.		162,168		10,988,504
Gen-Probe, Inc. *		155,151		9,270,272
Herbalife, Ltd.		266,903		12,571,131
Johnson & Johnson		70,168		4,941,932
Healthcare Services 1.51%				11,528,309
DaVita, Inc. *		89,462		5,134,224
Express Scripts, Inc. *		87,101		6,394,085
Holdings Companies/Conglomerates 2.61%				19,946,701
General Electric Company		709,847		19,946,701
Hotels & Restaurants 2.48%				18,918,107
Yum! Brands, Inc.		530,216		18,918,107
Household Products 1.08%				8,260,324
Jarden Corp. *		321,789		8,260,324
Industrial Machinery 1.39%				10,611,463
Flowserve Corp.		41,816		5,524,730
Terex Corp. *		101,148		5,086,733
Insurance 8.41%				64,205,201
ACE, Ltd. *		112,635		5,925,727
American Financial Group, Inc.		244,624		6,979,123
Arch Capital Group, Ltd. *		81,680		5,697,997
Endurance Specialty Holdings, Ltd.		190,562		6,216,133
Genworth Financial, Inc., Class A		437,959		7,029,242
ING Groep NV, SADR		245,601		7,650,471

See notes to financial statements Annual report | Optimized Value Fund 13

FINANCIAL STATEMENTS

Issuer	Shares		Value
Insurance (continued)
RenaissanceRe Holdings, Ltd.		157,910	$	8,007,616
The Travelers Companies, Inc.		94,552		4,175,416
Willis Group Holdings, Ltd.		363,843		12,523,476
International Oil 9.37%				71,510,883
Chevron Corp.		135,398		11,687,556
ConocoPhillips		270,612		22,328,196
Exxon Mobil Corp.		356,821		28,549,248
Sasol, Ltd., SADR		162,682		8,945,883
Internet Content 0.25%				1,924,970
Google, Inc., Class A *		4,155		1,924,970
Leisure Time 0.99%				7,555,989
Walt Disney Company		233,570		7,555,989
Life Sciences 1.45%				11,034,671
PerkinElmer, Inc.		388,408		11,034,671
Manufacturing 1.44%				10,992,749
Honeywell International, Inc.		219,110		10,992,749
Mining 0.73%				5,563,044
Anglo American PLC, ADR		209,137		5,563,044
Petroleum Services 2.37%				18,050,054
ENSCO International, Inc.		134,848		9,139,998
Petro-Canada		201,859		8,910,056
Pharmaceuticals 2.82%				21,525,003
Abbott Laboratories		231,953		13,321,061
Pfizer, Inc.		429,301		8,203,942
Real Estate 1.83%				13,980,759
Boston Properties, Inc., REIT		25,309		2,593,413
SL Green Realty Corp., REIT		132,411		11,387,346
Retail Trade 2.46%				18,738,771
CVS Caremark Corp.		223,304		8,172,926
The TJX Companies, Inc.		291,552		10,565,845
Sanitary Services 3.08%				23,502,339
Allied Waste Industries, Inc. *		931,824		12,523,715
Stericycle, Inc. *		185,137		10,978,624
Semiconductors 1.04%				7,938,702
PMC-Sierra, Inc. *		882,078		7,938,702
Software 0.73%				5,523,332
Nuance Communications, Inc. *		349,578		5,523,332
Steel 0.65%				4,984,270
United States Steel Corp.		37,456		4,984,270
Telecommunications Equipment & Services 3.56%				27,185,786
Amdocs, Ltd. *		299,413		9,039,278
Embarq Corp.		384,786		18,146,508

14 Optimized Value Fund | Annual report See notes to financial statements

FINANCIAL STATEMENTS

Issuer	Shares		Value
Telephone 4.04%			$	30,855,843
AT&T, Inc.		448,443		14,345,690
CenturyTel, Inc.		427,392		16,510,153
Tobacco 0.59%				4,523,700
Altria Group, Inc.		215,107		4,523,700

Issuer, description, maturity date	Principal amount		Value
Short term investments 0.42%			$	3,237,811
(Cost $3,237,811)
Societe Generale North America, Inc. 2.10% due 09/02/2008	$	3,238,000		3,237,811
Total investments (Cost $764,836,685)† 99.87%			$	762,165,082
Other assets in excess of liabilities 0.13%			$	988,972
Total net assets 100.00%			$	763,154,054

	Percentages are stated as a percent of net assets.
ADR	American Depositary Receipts
PLC	Public Limited Company
REIT	Real Estate Investment Trust
SADR	Sponsored American Depositary Receipts

*	Non-Income Producing
†	At August 31, 2008, the aggregate cost of investment securities for federal income tax purposes was $768,029,413. Net unrealized depreciation aggregated $5,864,331, of which $41,884,666 related to appreciated investment securities and $47,748,997 related to depreciated investment securities.

See notes to financial statements Annual report | Optimized Value Fund 15

Financial statements

FINANCIAL STATEMENTS

Statement of assets and liabilities 8-31-08

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 public offering price per share.

Assets
Investments at value (Cost $764,836,685)	$	762,165,082
Receivable for fund shares sold		9,720
Dividends and interest receivable (net of tax)		1,239,867
Receivable for security lending income		5,080
Receivable due from adviser		919
Other assets		13,363
Total assets		763,434,031
Liabilities
Due to custodian		3,231
Payable for fund shares repurchased		184,526
Payable to affiliates
Fund administration fees		14,288
Transfer agent fees		17
Trustees’ fees		93
Other payables and accrued expenses		77,822
Total liabilities		279,977
Net assets
Capital paid-in	$	921,688,219
Undistributed net investment income		8,653,707
Accumulated net realized loss on investments and foreign currency transactions		(164,516,210	)
Net unrealized depreciation on investments and translation of assets and liabilities in foreign currencies		(2,671,662	)
Net assets	$	763,154,054

16 Optimized Value Fund  |  Annual report See notes to financial statements

FINANCIAL STATEMENTS

Statement of assets and liabilities (continued)

Net asset value per share
The Funds 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	$	48,593
Shares outstanding		3,755
Net asset value and redemption price per share	$	12.94
Class B1
Net assets	$	10,134
Shares outstanding		787
Net asset value and offering price per share	$	12.87	2
Class C1
Net assets	$	8,601
Shares outstanding		668
Net asset value and offering price per share	$	12.87	2
Class I
Net assets	$	8,666
Shares outstanding		668
Net asset value, offering price and redemption price per share	$	12.97
Class 1
Net assets	$	69,346,376
Shares outstanding		5,344,591
Net asset value, offering price and redemption price per share	$	12.98
Class NAV
Net assets	$	693,731,684
Shares outstanding		53,426,909
Net asset value, offering price and redemption price per share	$	12.98
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)3	$	13.62

1	Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.
2	Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on August 31, 2008.
3	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

See notes to financial statements Annual report  |  Optimized Value Fund 17

FINANCIAL STATEMENTS

Statement of operations For the year ended 8-31-08

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	$	18,180,955
Interest		475,332
Securities lending		150,845
Income from affiliated issuers		34,054
Less foreign taxes withheld		(304,363	)
Total investment income		18,536,823
Expenses
Investment management fees (Note 4)		5,048,879
Distribution and service fees (Note 4)		42,857
Transfer agent fees (Note 4)		60
Fund administration fees (Note 4)		117,287
Blue sky fees (Note 4)		9,124
Audit and legal fees		54,837
Printing and postage fees (Note 4)		7,824
Custodian fees		82,265
Trustees’ fees (Note 5)		7,918
Registration and filing fees		28,956
Miscellaneous		8,104
Total expenses		5,408,111
Less expense reductions (Note 4)		(16,902	)
Less transfer agency credits (Note 4)		(2	)
Net expenses		5,391,207
Net investment income		13,145,616
Realized and unrealized loss
Net realized loss on
Investments in unaffiliated issuers		(160,141,668	)
Foreign currency transactions		(675	)
		(160,142,343	)
Change in net unrealized appreciation (depreciation) of
Investments		(16,763,846	)
Translation of assets and liabilities in foreign currencies		(59	)
		(16,763,905	)
Net realized and unrealized loss		(176,906,248	)
Decrease in net assets from operations	($	163,760,632	)

18 Optimized Value Fund  |  Annual report See notes to financial statements

FINANCIAL STATEMENTS

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.

	Year ended 8-31-07			Year ended 8-31-08
Increase (decrease) in net assets
From operations
Net investment income	$	11,755,356		$	13,145,616
Net realized gain (loss)		61,580,398			(160,142,343	)
Change in net unrealized appreciation (depreciation)		(15,018,119	)		(16,763,905	)
Increase (decrease) in net assets resulting from operations		58,317,635			(163,760,632	)
Distributions to shareholders
From net investment income
Class 1		(1,260,172	)		(1,551,400	)
Class NAV		(5,564,010	)		(12,179,658	)
From net realized gain
Class 1		(4,979,138	)		(6,958,131	)
Class NAV		(21,793,012	)		(52,962,770	)
Total distributions		(33,596,332	)		(73,651,959	)
From Fund share transactions (Note 6)		302,639,097			215,089,065
Total increase (decrease)		327,360,400			(22,323,526	)
Net assets
Beginning of year		458,117,180			785,477,580
End of year	$	785,477,580		$	763,154,054
Undistributed net investment income	$	9,223,883		$	8,653,707

See notes to financial statements Annual report  |  Optimized Value Fund 19

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	8-31-08		1
Per share operating performance
Net asset value, beginning of period		14.97
Net investment income		0.10	2
Net realized and unrealized loss on investments		(2.13	)
Total from investment operations		(2.03	)
Net asset value, end of period	$	12.94
Total return (%)		(13.56	)3,4
Ratios and supplemental data
Net assets, end of period (in millions)		—	5
Ratios (as a percentage of average net assets):
Expenses before reductions		28.82	6
Expenses net of all fee waivers		1.29	6
Expenses net of all fee waivers and credits		1.29	6
Net investment income		1.22	6
Portfolio turnover (%)		159

1	Class A shares began operations on 12-31-07.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Not annualized.
5	Less than $500,000.
6	Annualized.

20 Optimized Value Fund  |  Annual report See notes to financial statements

FINANCIAL STATEMENTS

Financial highlights

CLASS B SHARES

Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		14.97
Net investment income		0.03	2
Net realized and unrealized loss on investments		(2.13	)
Total from investment operations		(2.10	)
Net asset value, end of period	$	12.87
Total return (%)		(14.03	)3,4
Ratios and supplemental data
Net assets, end of period (in millions)		—	5
Ratios (as a percentage of average net assets):
Expenses before reductions		71.10	6
Expenses net of all fee waivers		1.99	6
Expenses net of all fee waivers and credits		1.99	6
Net investment income		0.43	6
Portfolio turnover (%)		159

1	Class B shares began operations on 12-31-07.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Not annualized.
5	Less than $500,000.
6	Annualized.

See notes to financial statements Annual report  |  Optimized Value Fund 21

FINANCIAL STATEMENTS

Financial highlights

CLASS C SHARES

Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		14.97
Net investment income		0.03	2
Net realized and unrealized loss on investments		(2.13	)
Total from investment operations		(2.10	)
Net asset value, end of period	$	12.87
Total return (%)		(14.03	)3,4
Ratios and supplemental data
Net assets, end of period (in millions)		—	5
Ratios (as a percentage of average net assets):
Expenses before reductions		72.97	6
Expenses net of all fee waivers		1.99	6
Expenses net of all fee waivers and credits		1.99	6
Net investment income		0.43	6
Portfolio turnover (%)		159

1	Class C shares began operations on 12-31-07.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Not annualized.
5	Less than $500,000.
6	Annualized.

22 Optimized Value Fund  |  Annual report See notes to financial statements

FINANCIAL STATEMENTS

Financial highlights

CLASS I SHARES

Period ended	8-31-08		1
Per share operating performance
Net asset value, beginning of period		14.97
Net investment income		0.14	2
Net realized and unrealized loss on investments		(2.14	)
Total from investment operations		(2.00	)
Net asset value, end of period	$	12.97
Total return (%)		(13.36	)3,4
Ratios and supplemental data
Net assets, end of period (in millions)		—	5
Ratios (as a percentage of average net assets):
Expenses before reductions		71.55	6
Expenses net of all fee waivers		0.84	6
Expenses net of all fee waivers and credits		0.84	6
Net investment income		1.59	6
Portfolio turnover (%)		159

1	Class I shares began operations on 12-31-07.
2	Based on the average of the shares outstanding.
3	Total returns would have been lower had certain expenses not been reduced during the period shown.
4	Not annualized.
5	Less than $500,000.
6	Annualized.

See notes to financial statements Annual report  |  Optimized Value Fund 23

FINANCIAL STATEMENTS

Financial highlights

CLASS 1 SHARES
Period ended	8-31-06		1	8-31-07			8-31-08
Per share operating performance
Net asset value, beginning of period	$	14.09		$	16.56		$	17.55
Net investment income2		0.22			0.31			0.24
Net realized and unrealized gain (loss) on investments		2.31			1.68			(3.32	)
Total from investment operations		2.53			1.99			(3.08	)
Less distributions
From net investment income		(0.06	)		(0.20	)		(0.27	)
From net realized gain		—	3		(0.80	)		(1.22	)
Total distributions		(0.06	)		(1.00	)		(1.49	)
Net asset value, end of period	$	16.56		$	17.55		$	12.98
Total return (%)4		17.98	5		12.12			(18.77	)
Ratios and supplemental data
Net assets, end of period (in millions)	$	96		$	106		$	69
Ratios (as a percentage of average net assets):
Expenses before reductions		0.79	6		0.74			0.73
Expenses net of all fee waivers		0.79	6		0.74			0.73
Expenses net of all fee waivers and credits		0.79	6		0.74			0.73
Net investment income		1.62	6		1.75			1.63
Portfolio turnover (%)		127			169			159

1	Class 1 shares began operations on 10-15-05.
2	Based on the average of the shares outstanding.
3	Less than $0.01 per share.
4	Assumes dividend reinvestment.
5	Not annualized.
6	Annualized.

24 Optimized Value Fund | Annual report See notes to financial statements

FINANCIAL STATEMENTS

Financial highlights

CLASS NAV SHARES
Period ended	8-31-06		1	8-31-07			8-31-08
Per share operating performance
Net asset value, beginning of period	$	14.09		$	16.56		$	17.57
Net investment income2		0.24			0.32			0.25
Net realized and unrealized gain (loss) on investments		2.29			1.69			(3.34	)
Total from investment operations		2.53			2.01			(3.09	)
Less distributions
From net investment income		(0.06	)		(0.20	)		(0.28	)
From net realized gain		—	3		(0.80	)		(1.22	)
Total distributions		(0.06	)		(1.00	)		(1.50	)
Net asset value, end of period	$	16.56		$	17.57		$	12.98
Total return (%)4		17.98	5		12.26			(18.82	)
Ratios and supplemental data
Net assets, end of period (in millions)	$	362		$	680		$	694
Ratios (as a percentage of average net assets):
Expenses before reductions		0.74	6		0.69			0.69
Expenses net of all fee waivers		0.74	6		0.69			0.69
Expenses net of all fee waivers and credits		0.74	6		0.69			0.69
Net investment income		1.73	6		1.81			1.69
Portfolio turnover (%)		127			169			159

1	Class NAV shares began operations on 10-15-05.
2	Based on the average of the shares outstanding.
3	Less than $0.01 per share.
4	Assumes dividend reinvestment.
5	Not annualized.
6	Annualized.

See notes to financial statements Annual report | Optimized Value Fund 25

Notes to financial statements

Note 1
Organization

John Hancock Optimized Value Fund (the Fund), formerly the Quantitative Value Fund, is a series of John Hancock Funds II (the Trust or JHF II). The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end investment management company. The investment objective of the Fund is to seek long-term capital appreciation.

John Hancock Life Insurance Company of New York (John Hancock New York) is a wholly owned subsidiary of John Hancock Life Insurance Company (U.S.A.) (John Hancock USA). John Hancock USA and John Hancock New York are indirect wholly owned subsidiaries of The Manufacturers Life Insurance Company (Manulife), which in turn is a wholly owned subsidiary of Manulife Financial Corporation (MFC), a publicly traded company. MFC and its subsidiaries are known collectively as “Manulife Financial.”

John Hancock Investment Management Services, LLC (the Adviser), a Delaware limited liability company controlled by John Hancock USA, serves as investment adviser for the Trust and John Hancock Funds, LLC (the Distributor), a Delaware limited liability company, an affiliate of the Adviser, serves as principal underwriter.

The Board of Trustees have authorized the issuance of multiple classes of shares of the Fund, including classes designated as Class A, Class B, Class C, Class I, Class 1 and Class NAV shares. Class A, Class B and Class C shares are open to all retail investors. Class I shares are offered without any sales charge to various institutional and certain individual investors. Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class NAV shares are sold to affiliated funds of funds, which are funds of funds within the John Hancock funds complex. The shares of each class represent an interest in the same portfolio of investments of the Fund, and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Board of Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission (SEC) and the Internal Revenue Service. Shareholders of a class that bear distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Class B shares will convert to Class A shares eight years after purchase.

Effective December 31, 2007, Class A, B, C and I, respectively, commenced operations.

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. The following summarizes the significant accounting policies of the Fund:

Security valuation

The net asset value of shares of the Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. Investments in John Hancock Cash Investment Trust (JHCIT), an affiliate of John Hancock Advisers, LLC (the Adviser), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (MFC), are

26 Optimized Value Fund | Annual report

valued at their net asset value each business day. All other securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading.

Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of the Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

In deciding whether to make a fair value adjustment to the price of a security, the Board of Trustees or their designee may review a variety of factors, including developments in foreign markets, the performance of U.S. securities markets and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. The Fund may also fair value securities in other situations, for example, when a particular foreign market is closed, but the Fund is calculating the net asset value. In view of these factors, it is likely that a Fund investing significant amounts of assets in securities in foreign markets will be fair valued more frequently than a Fund investing significant amounts of assets in frequently traded, U.S. exchange listed securities of large-capitalization U.S. issuers.

For purposes of determining when fair value adjustments may be appropriate with respect to investments in securities in foreign markets that close prior to the NYSE, the Fund will, on an ongoing basis, monitor for “significant market events.” A significant market event may be a certain percentage change in the value of an index that tracks foreign markets in which the Fund has significant investments. If a significant market event occurs due to a change in the value of the index, the pricing for investments in foreign markets that have closed prior to the NYSE will promptly be reviewed and potential adjustments to the net asset value will be recommended to the Fund’s Pricing Committee where applicable.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity.

Foreign currency translation

The books and records of the Fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.

Investment transactions

Investment transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial

Annual report | Optimized Value Fund 27

reporting purposes, investment security transactions are reported on trade date. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes. Realized gains and losses from investment transactions are recorded on an identified cost basis.

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 appropriate net asset value of the respective classes. Distribution and service fees, if any, and transfer agent fees for each class are calculated daily at the class level based on the appropriate net asset value of each class and the specific expense rate(s) applicable to each class.

Guarantees and indemnifications

Under the Fund’s organizational documents, its Officers and Trustees are indemnified against certain liability 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.

Expenses

The majority of expenses are directly identifiable to an individual fund. Trust expenses that are not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of expense and the relative size of the funds.

Line of credit

The Fund has entered into an agreement which enables them to participate in a $150 million unsecured committed line of credit with State Street Corporation. Borrowings will be made solely to temporarily finance the repurchase of capital shares. Interest is charged to the Fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.05% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit, is charged to the Fund on a prorated basis based on average net assets. For the year ended August 31, 2008, there were no borrowings under the line of credit.

Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Fund to make properly authorized payments. When such payments result in an overdraft, the Fund is obligated to repay the Custodian for any overdraft, including any costs or expenses associated with the overdraft. The Custodian has a lien and security interest in any Fund property to the extent of any overdraft.

Securities lending

The Fund may lend portfolio securities from time to time in order to earn additional income. The Fund retains beneficial ownership of the securities it has loaned and continues to receive interest and dividends paid by the issuer of securities and to participate in any changes in their value. On the settlement date of the loan, the Fund receives cash collateral against the loaned securities and maintains the cash collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required cash collateral is delivered to the Fund on the next business day. Cash collateral received is invested in the JHCIT. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. The Fund may receive compensation for lending their securities either in the form of fees, guarantees, and/or by retaining a portion of interest on the investment of any cash received as collateral.

The Fund has entered into an agreement with Morgan Stanley & Co., Inc. and MS Securities Services, Inc. (collectively, Morgan Stanley) which permits the Fund to lend securities to Morgan Stanley on a principal basis. Morgan Stanley is the primary borrower of securities of the Fund. The risk of having one primary

28 Optimized Value Fund | Annual report

borrower of Fund securities (as opposed to several borrowers in an agency relationship) is that should Morgan Stanley fail financially, all securities lent will be affected by the failure and by any delays in recovery of the securities (or loss of rights in the collateral).

Federal income taxes

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

For federal income tax purposes, the Fund has $6,372,104 of a capital loss carryforward available, to the extent provided by regulations, to offset future net realized capital gains. To the extent that such carryforward is used by the Fund, no capital gain distributions will be made. The loss carryforwards expire as follows: August 31, 2016 — $6,372,104. Net capital losses of $154,832,286 that are attributable to security transactions incurred after October 31, 2008, are treated as arising on September 1, 2008, the first day of the Fund’s next taxable year.

The Fund has adopted the provisions of Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109 (FIN 48), at the beginning of the Fund’s fiscal year. FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not have a material impact on the Fund’s financial statements. Each of the Fund’s federal tax returns for the prior three years remain subject to examination by the Internal Revenue Service.

New accounting pronouncements

In September 2006, FASB Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. As of July 31, 2008, management does not believe the adoption of FAS 157 will have a material impact on the amounts reported in the financial statements.

In March 2008, FASB No. 161 (FAS 161), Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (FAS 133), was issued and is effective for fiscal years and interim reporting periods beginning after November 15, 2008. FAS 161 amends and expands the disclosure requirements of FAS 133 in order to provide financial statement users an understanding of a company’s use of derivative instruments, how derivative instruments are accounted for under FAS 133 and related interpretations and how these instruments affect a company’s financial position, performance, and cash flows. FAS 161 requires companies to disclose information detailing the objectives and strategies for using derivative instruments, the level of derivative activity entered into by the company, and any credit risk-related contingent features of the agreements. Management is currently evaluating the adoption of FAS 161 on the Fund’s financial statement disclosures.

Distribution of income and gains

The Fund records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. During the year ended August 31, 2007, the tax character of distributions paid was as follows: ordinary income $33,554,334 and long-term capital gain $41,998. During the year ended August 31, 2008, the tax character of distributions paid was as follows: ordinary income $51,410,888 and long-term capital gain $22,241,071. 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.

As of August 31, 2008, the components of distributable earnings on a tax basis included $8,534,615 of undistributed ordinary income.

Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions

Annual report | Optimized Value Fund 29

in excess of tax basis earnings and profits, if any, are reported in the Fund’s financial statements as a return of capital.

Capital accounts within financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period. For the year ended August 31, 2008, there were no permanent book-tax differences.

Note 3
Risk and uncertainty
Concentration risk

The Fund may concentrate investments in a comparatively narrow segment of the economy. Consequently, such Fund may tend to be more volatile than other funds and the value of investments may tend to rise and fall more rapidly.

Note 4
Investment advisory and other agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvisers to handle the investment of the assets of the Fund, subject to the supervision of the Trust’s Board of Trustees. As compensation for its services, the Adviser receives an advisory fee from the Trust. Under the Advisory Agreement, 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 $500,000,000 of the Fund’s aggregate daily net assets; (b) 0.65% of the next $500,000,000 of the Fund’s aggregate daily net assets; and (c) 0.60% of the Fund’s aggregate daily net assets in excess of $1,000,000,000. Aggregate net assets include the net assets of the Fund and Optimized Value Trust, a series of John Hancock Trust. John Hancock Trust is an open-end investment company advised by the Adviser and distributed by an affiliate of the Adviser, John Hancock Distributors, LLC. The effective rate for the year ended August 31, 2008 is 0.65% of the Fund’s average daily net asset value. The Adviser has a subadvisory agreement with MFC Global Investment Management (U.S.A.) Limited, an affiliate of the Adviser. The Fund is not responsible for payment of the subadvisory fees.

The Adviser has agreed contractually to reimburse for certain fund level expenses that exceed 0.25% of the average annual net assets, or to make a payment to a specific class of shares of the Fund in an amount equal to the amount by which the expenses attributable to such class of shares (excluding taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Fund’s business and fees under any agreement or plans of the Fund dealing with services for shareholders and others with beneficial interests in shares of the Fund) exceed the percentage of average annual net assets (on an annualized basis) attributable as follows: 1.29% for Class A, 1.99% for Class B, 1.99% for Class C and 0.84% for Class I. Accordingly, the expense reductions related to this expense limitation amounted to $4,241, $4,221, $4,220 and $4,220 for Class A, Class B, Class C and Class I, respectively, for the year ended August 31, 2008. This expense reimbursement shall continue in effect until December 31, 2008 and thereafter until terminated by the Adviser on notice to the Trust.

Pursuant to the Advisory 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, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each class at the time the expense was incurred.

The fund administration fees incurred for the year ended August 31, 2008, were equivalent to an annual effective rate of 0.01% of the Fund’s average daily net assets.

The Trust has a Distribution Agreement with the Distributor. The Fund has adopted Distribution Plans with respect to Class A, Class B, Class C and Class 1, pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for the services it provides as distributor of shares of the Fund. Accordingly, the Fund makes daily

30 Optimized Value Fund | Annual report

payments to the Distributor at an annual rate not to exceed 0.30%, 1.00%, 1.00% and 0.05% of average daily net asset value of Class A, Class B, Class C and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of Financial Industry Regulatory Authority (formerly the National Association of Securities Dealers). Under the Conduct Rules, curtailment of a portion of the Fund’s 12b-1 payments could occur under certain circumstances.

Class A shares are assessed up-front sales charges. During the year ended August 31, 2008, there were no net up-front sales charges received by the Distributor with regard to sales of Class A shares.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (CDSC) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used in whole or in part to defray its expenses for providing distribution-related services to the Fund in connection with the sale of Class B and Class C shares. During the year ended August 31, 2008, there were no CDSCs received by Distributor for Class B shares and for Class C shares.

The Fund has a Transfer Agency Agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. For Class A, Class B and Class C shares, the Fund pays a monthly transfer agent fee at an annual rate of 0.05% of each class’ average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value. The Fund pays a monthly fee which is based on an annual rate of $16.50 for each Class A, Class B, Class C and Class I shareholder account.

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of Class A, Class B, Class C and Class I share average daily net assets. This agreement is effective until December 31, 2008. Signature Services reserves the right to terminate this limitation in the future. There were no transfer agent fee reductions for Class A, Class B, Class C and Class I shares, respectively, during the year ended August 31, 2008.

In January 2008, the Fund began receiving earnings credits from its transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Fund’s transfer agent fees and out-of-pocket expenses. During the year ended August 31, 2008, the Fund’s transfer agent fees and out-of-pocket expenses were reduced by $2 for transfer agent credits earned.

Class level expenses including the allocation of the transfer agent fees for the year ended August 31, 2008, were as follows:

Share class	Distribution and service fees		Transfer agent fees		Printing and postage fees		Blue sky fees
Class A	$	46	$	32	$	1,976	$	2,281
Class B		61		12		1,947		2,281
Class C		60		12		1,947		2,281
Class I		—		4		1,947		2,281
Class 1		42,690		—		—		—
Class NAV		—		—		7		—
Total	$	42,857	$	60	$	7,824	$	9,124

The Adviser and other subsidiaries of John Hancock USA owned 668, 668, 668 and 668 shares of beneficial interest of Class A, Class B, Class C and Class I, respectively, on August 31, 2008.

Annual report | Optimized Value Fund 31

Mr. James R. Boyle is Chairman of the Adviser, as well as affiliated Trustee of the Fund, and is compensated by the Adviser and/or its affiliates. The compensation of unaffiliated Trustees is borne by the Fund. The unaffiliated Trustees may elect to defer, for tax purposes, their receipt of this compensation under the John Hancock Group of Funds Deferred Compensation Plan. The Fund makes investments into other John Hancock funds, as applicable, to cover its liability for the deferred compensation. Investments to cover the Fund’s deferred compensation liability are recorded on the Fund’s books as an other asset. The deferred compensation liability and the related other asset are always equal and are marked to market on a periodic basis to reflect any income earned by the investments, as well as any unrealized gains or losses. The Deferred Compensation Plan investments had no impact on the operations of the Fund.

Note 5
Trustees’ fees

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

Note 6
Fund share transactions

Share activities for the Fund for the years ended August 31, 2007, and August 31, 2008, were as follows:

	Year ended 8-31-07						Year ended 8-31-08					1
	Shares			Amount			Shares			Amount
Class A shares
Sold		—			—			4,216		$	55,914
Repurchased		—			—			(461	)		(5,651	)
Net increase		—			—			3,755		$	50,263
Class B shares
Sold		—			—			787		$	11,485
Net increase		—			—			787		$	11,485
Class C shares
Sold		—			—			668		$	10,000
Net increase		—			—			668		$	10,000
Class I shares
Sold		—			—			668		$	10,000
Net increase		—			—			668		$	10,000
Class 1 shares
Sold		891,205		$	15,602,769			123,246		$	1,790,160
Distributions reinvested		362,329			6,239,310			560,206			8,509,531
Repurchased		(1,020,359	)		(18,082,760	)		(1,357,703	)		(19,836,628	)
Net increase (decrease)		233,175		$	3,759,319			(674,251	)	($	9,536,937	)
Class NAV shares
Sold		15,653,371		$	279,195,794			10,453,910		$	159,592,299
Distributions reinvested		1,587,755			27,357,022			4,288,507			65,142,428
Repurchased		(418,062	)		(7,673,038	)		(13,570	)		(190,473	)
Net increase		16,823,064		$	298,879,778			14,728,847		$	224,544,254
Net increase		17,056,239		$	302,639,097			14,060,474		$	215,089,065

¹Class A, Class B, Class C and Class I shares began operations on 12-31-07.

32 Optimized Value Fund | Annual report

Note 7

Purchases and sales of securities

Purchases and proceeds from sales or maturities of securities, other than short-term securities and obligations of the U.S. government, during the year ended August 31, 2008, aggregated $1,383,385,402 and $1,224,863,609, respectively.

Annual report | Optimized Value Fund 33

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of John Hancock Funds II,

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Optimized Value Fund, one of the Funds comprising John Hancock Funds II (the Trust) at August 31, 2008, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2008 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 30, 2008

34 Optimized Value Fund | Annual report

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Fund, if any, paid during its taxable year ended August 31, 2008.

The Fund has designated distributions to shareholders of $22,241,071 as a long-term capital gain dividend.

With respect to the ordinary dividends paid by the Fund for the fiscal year ended August 31, 2008, 98.10% of the dividends qualifies for the corporate dividends-received deduction.

The Fund hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2008.

Shareholders will be mailed a 2008 U.S. Treasury Department Form 1099-DIV in January 2009. This will reflect the total of all distributions that are taxable for calendar year 2008.

Annual report | Optimized Value Fund 35

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

This section describes the evaluation by the Board of Trustees of the Advisory Agreement (the Advisory Agreement) and each of the Subadvisory Agreements and the Sub-Subadvisory Agreements (collectively, the Subadvisory Agreements) for each of the portfolios (the Funds) of John Hancock Funds II (the Trust) discussed in this annual report.

The Board, including the Independent Trustees, is responsible for selecting the Trust’s adviser, John Hancock Investment Management Services, LLC (the Adviser or JHIMS), approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust and approving the Trust’s advisory and subadvisory (and any sub-subadvisory) agreements, their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 are:

1.	the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;
2.	the investment performance of the Funds and their subadvisers;
3.	the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;
4.	the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and
5.	comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any sub-subadvisory agreements) with subadvisers not affiliated with the Adviser, the Board believes that, in view of the Trust’s manager-of-managers advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds and the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (Material Relationships).

Approval of Advisory Agreement

At its meeting on May 30, 2008, the Board, including all the Independent Trustees, approved the Advisory Agreement.

In approving the renewal of the Advisory Agreement, and with reference to the factors that it regularly considers, the Board:

(1) (a) considered the high value to the Trust of continuing its relationship with JHIMS as the Trust’s adviser, the skills and competency with which JHIMS has in the past managed the Trust’s

36 Optimized Value Fund | Annual report

	affairs and its subadvisory relationships, JHIMS’s oversight and monitoring of the subadvisers’ investment performance and compliance programs including its timeliness in responding to performance issues and the qualifications of JHIMS’s personnel,
(b)	considered JHIMS’s compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments, and
(c)	considered JHIMS’s administrative capabilities, including its ability to supervise the other service providers for the Funds and concluded that JHIMS may reasonably be expected to continue to perform its services under the Advisory Agreement with respect to the Funds;

(2)

reviewed the investment performance of each of the Funds; the comparative performance of their respective benchmarks, comparable funds (i.e., funds having approximately the same investment objective), if any; and JHIMS’s analysis of such performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally and with respect to particular Funds; and concluded that each of the Funds has generally performed well or within a range that the Board deemed competitive except as discussed in Appendix A and in such cases, that appropriate action is being taken to address performance, if necessary, or that such performance is reasonable in light of all factors considered, and that JHIMS may reasonably be expected to continue ably to monitor the performance of the Funds and each of their subadvisers;

(3)

reviewed the Trust’s advisory fee structure and the incorporation therein of any subad-visory fee breakpoints in the advisory fees charged and concluded (i) that to the extent that Funds have subadvisory fees with breakpoints, those breakpoints are reflected as breakpoints in the advisory fees for Funds, (ii) that all Funds with a subadviser that is not affiliated with the Adviser have subadvisory fees which are the product of arm’s-length negotiations between the Adviser and the subadviser and which in many, but not all, cases contain breakpoints, and (iii) that, although economies of scale cannot be measured with precision, these arrangements permit shareholders of Funds with advisory fee breakpoints to benefit from economies of scale if those Funds grow;

(4) (a) reviewed the financial statements of JHIMS and considered (i) an analysis presented by JHIMS regarding the net profitability to JHIMS of each Fund,

(b)	reviewed the profitability of the JHIMS’s relationship with each Fund in terms of the total amount of annual advisory fees it received with respect to the Fund and whether JHIMS has the financial ability to continue to provide a high level of services to the Fund,
(c)	considered that JHIMS derives reputational and other indirect benefits from providing advisory services to the Funds, and
(d)	noted that JHIMS pays the subad-visory fees out of the advisory fees JHIMS receives from the Funds and concluded that the advisory fees paid by the Trust with respect to the Funds are not unreasonable in light of such information; and

(5) reviewed comparative information with respect to the advisory fee rates and concluded that the Trust’s advisory fees are generally within a competitive range of those incurred by other comparable funds. In this regard, the Board took into account management’s discussion with respect to the advisory fee structure. The Board also noted that JHIMS is currently waiving fees and/or reimbursing expenses with respect to certain of the Funds and that the Adviser pays the subadvisory fees of the Funds. The Board also took into account the level and quality of services provided by JHIMS with respect to the Funds, as well as the other factors considered.

Annual report | Optimized Value Fund 37

Additional information that the Board considered in approving the Advisory Agreement is set forth in Appendix A.

Approval of Subadvisory Agreements

At its meeting on May 30, 2008, the Board, including all the Independent Trustees, renewed and approved the Subadvisory Agreements.

In making its determination with respect to the factors that it considers, the Board reviewed:

(1)	information relating to each subadviser’s business, which may include information such as: business performance, assets under management and personnel;
(2)	the historical and current performance of the Fund and comparative performance information relating to the Fund’s benchmark and comparable funds;
(3)	the subadvisory fee for each Fund and comparative fee information; and
(4)	information relating to the nature and scope of Material Relationships and their significance to the Trust’s adviser and unaffiliated subadvisers.

The Board noted that in the case of each sub-subadvisory agreement, that the sub-subadvisory fee would be paid by the Subadviser out of the subadvisory fee and would not be an expense of the Fund.

The Board’s decision to approve each Sub-advisory Agreement was based on a number of determinations, including the following:

(1)	The subadviser has extensive experience and demonstrated skills as a manager;
(2)	Although not without variation, the current and historical performance of each Fund managed by a subadviser has generally been in line with or outperformed the current and historical performance of comparable funds and the Fund’s respective benchmarks with the exceptions noted in Appendix A (with respect to such exceptions, the Board concluded that appropriate action was being taken to address such Funds’ performance, if necessary, or that performance was reasonable in light of all factors considered);
(3)	The subadvisory fees are generally competitive within the range of industry norms and, with respect to each subadviser that is not affiliated with the Adviser, are a product of arm’s-length negotiation between the Adviser and the subadviser;
(4)	With respect to those Funds that have sub-advisory fees that contain breakpoints, such breakpoints are reflected as breakpoints in the advisory fees for the Funds in order to permit shareholders to benefit from economies of scale if those Funds grow; and
(5)	The Material Relationships consist of arrangements in which unaffiliated subad-visers or their affiliates provide advisory, distribution or management services in connection with financial products sponsored by the Trust’s adviser or its affili-ates, which may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans, and which in no case contained elements which would cause the Board to conclude that approval of the subadvisory agreement with the subadviser would be inappropriate.

Additional information that the Board considered for the Fund is set forth in Appendix A.

38 Optimized Value Fund | Annual report

Appendix A

Portfolio (Subadviser)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Optimized Value Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s quantitative investment style and the interaction of market conditions with the quantitative model. The Board also noted that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund.

Annual report | Optimized Value Fund 39

Trustees and Officers

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

Independent Trustees

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
Charles L. Bardelis,2 Born: 1941	2005	212
Director, Island Commuter Corp. (Marine Transport). Trustee of John Hancock Trust (since 1988) and former Trustee of John Hancock Funds III (2005–2006).
Peter S. Burgess,2 Born: 1942	2005	212
Consultant (financial, accounting and auditing matters) (since 1999); Certified Public Accountant. Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director of the following publicly traded companies: PMA Capital Corporation (since 2004) and Lincoln Educational Services Corporation (since 2004). Trustee of John Hancock Trust (since 2005), and former Trustee of John Hancock Funds III (2005–2006).
Elizabeth G. Cook,3 Born: 1937	2005	212
Expressive Arts Therapist, Massachusetts General Hospital (September 2001 to June 2007); Expressive Arts Therapist, Dana Farber Cancer Institute (September 2000 to January 2004); Trustee of John Hancock Trust (since 2005) and former Trustee of John Hancock Funds III (2005–2006).
Theron S. Hoffman,6 Born: 1947	2008	212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, T. Hoffman Associates, LLC (since 2003); Director, The Todd Organization (since 2003); President, Westport Resources Management (2006–2008); Partner/Operating Head & Senior Managing Director, Putnam Investments (2000–2003).
Hassell H. McClellan,3 Born: 1945	2005	212
Associate Professor, The Graduate School of The Wallace E. Carroll School of Management, Boston College. Trustee of John Hancock Trust (since 2005), former Trustee of John Hancock Funds III (2005–2006) and Trustee of Phoenix Edge Series Fund (since 2008).
James M. Oates,2 Born: 1946	2005	212
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman, Emerson Investment Management, Inc. (since 2000); Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2006). Director of the following publicly traded companies: Stifel Financial (since 1996); Investor Financial Services Corporation (1995–2007); Investors Bank and Trust (since 1995) and Connecticut River Bancorp, Director (since 1998). Trustee of John Hancock Funds II (since 2005); and Former Trustee of John Hancock Funds III (2005–2006); Director, Phoenix Mutual Funds (since 1998).

40 Optimized Value Fund | Annual report

Independent Trustees (continued)
Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
Steven M. Roberts,6 Born: 1944	2008	212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Deputy Director, Board of Governors of the Federal Reserve System (2005–2008); Principal, KPMG (1987–2004).
Trustee Emeritus
Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
John D. Richardson,4,5 Born: 1938	2006	212
Trustee Emeritus5 (since December 2006); Trustee (prior to December 2006). Former Trustee of JHT (Retired, December 14, 2006). Former Senior Executive Vice President, Office of the President, MFC, February 2000 to March 2002 (Retired, March, 2002); Executive Vice President and General Manager, U.S. Operations, Manulife Financial, January 1995 to January 2000.

1	Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his/her successor is duly elected and qualified or until he/she dies, retires, resigns, is removed or becomes disqualified.
2	Member of Audit Committee.
3	Member of Compliance Committee.
4	Prior to 1997, Mr. Richardson was a Trustee of Manulife Series Fund, Inc., which merged into JHT on December 31, 1996.
5	Mr. Richardson retired as Trustee effective December 14, 2006. On such date, Mr. Richardson became a non-voting Trustee Emeritus.
6	Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

Annual report | Optimized Value Fund 41

Non-Independent Trustees^1,2

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
James R. Boyle,3 Born: 1959	2005	267
Executive Vice President, Manulife Financial Corporation (since 1999); Director and President, John Hancock Variable Life Insurance Company (since 2007); Director and Executive Vice President, John Hancock Life Insurance Company (since 2004); Chairman and Director, John Hancock Advisers, LLC (the Adviser), John Hancock Funds, LLC (John Hancock Funds) and The Berkeley Financial Group, LLC (The Berkeley Group) (holding company) (since 2005); Chairman and Director, John Hancock Investment Management Services, LLC (since 2006); Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (until 2004).
Grace K. Fey,4,5 Born: 1946	2008	212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, Grace Fey Advisors (since 2007); Director & Executive Vice President, Frontier Capital Management Company (1988–2007).

1	Each trustee serves until resignation, retirement age or until his or her successor is elected.
2	Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
3	Mr. Boyle is an “interested person” (as defined in the 1940 Act) due to his prior position with Manulife Financial Corporation (or its affiliates), the ultimate controlling parent of the Adviser.
4	Ms. Fey was appointed by the Board as Trustee on September 26, 2008.
5	Ms. Fey is an “interested person” (as defined by the 1940 Act) due to a deferred compensation arrangement with her former employer, Frontier Capital Management Company, which is a subadviser of certain funds of John Hancock Funds II and John Hancock Trust.

Principal officers who are not Trustees

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Officer of Fund since
Keith F. Hartstein, Born: 1956	2005
President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since 2005); Director, MFC Global Investment Management (U.S.), LLC (MFC Global (U.S.)) (since 2005); Chairman and Director, John Hancock Signature Services, Inc. (since 2005); Director, President and Chief Executive Officer, John Hancock Investment Management Services, LLC (since 2006); President and Chief Executive Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Director, Chairman and President, NM Capital Management, Inc. (since 2005); Member and former Chairman, Investment Company Institute Sales Force Marketing Committee (since 2003); Director, President and Chief Executive Officer, MFC Global (U.S.) (2005–2006); Executive Vice President, John Hancock Funds, LLC (until 2005).
Thomas M. Kinzler, Born: 1955	2006
Secretary and Chief Legal Officer
Vice President and Counsel, John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John Hancock Funds II and John Hancock Trust (since 2006); Vice President and Associate General Counsel, Massachusetts Mutual Life Insurance Company (1999–2006); Secretary and Chief Legal Counsel, MML Series Investment Fund (2000–2006); Secretary and Chief Legal Counsel, MassMutual Institutional Funds (2000–2004); Secretary and Chief Legal Counsel, MassMutual Select Funds and MassMutual Premier Funds (2004–2006).

42 Optimized Value Fund | Annual report

Principal officers who are not Trustees (continued)

Name, Year of Birth Position(s) held with Fund Principal occupation(s) and other directorships during past 5 years	Officer of Fund since
Francis V. Knox, Jr., Born: 1947	2005
Chief Compliance Officer
Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics & Compliance Officer, Fidelity Investments (until 2001).
Charles A. Rizzo, Born: 1957	2007
Chief Financial Officer
Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Assistant Treasurer, Goldman Sachs Mutual Fund Complex (registered investment companies) (2005–2007); Vice President, Goldman Sachs (2005–2007); Managing Director and Treasurer of Scudder Funds, Deutsche Asset Management (2003–2005); Director, Tax and Financial Reporting, Deutsche Asset Management (2002–2003); Vice President and Treasurer, Deutsche Global Fund Services (1999–2002).
Gordon M. Shone, Born: 1956	2005
Treasurer
Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Treasurer, John Hancock Funds (since 2006), John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003–2005); Vice President, John Hancock Investment Management Services, LLC, John Hancock Advisers, LLC (since 2006) and The Manufacturers Life Insurance Company (U.S.A.) (1998–2000).
John G. Vrysen, Born: 1955	2007
Chief Operating Officer
Senior Vice President, Manulife Financial Corporation (since 2006); Senior Vice President, John Hancock Life Insurance Company (since 2004); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since 2007); Director, Executive Vice President and Chief Operating Officer, John Hancock Investment Management Services, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Director, Executive Vice President and Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (2005–2007); Director, Executive Vice President and Chief Financial Officer, John Hancock Investment Management Services, LLC (2005–2007); Executive Vice President and Chief Financial Officer, MFC Global (U.S.) (2005–2007); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005–2007); Vice President and General Manager, John Hancock Fixed Annuities, U.S. Wealth Management (2004–2005); Vice President, Operations, Manulife Wood Logan (2000–2004).
The business address for all Trustees and Officers is 601 Congress Street, Boston, Massachusetts 02210-2805. The Statement of Additional Information of the Fund includes additional information about members of the Board of Trustees of the Fund and is available without charge, upon request, by calling 1-800-225-5291.

Annual report | Optimized Value Fund 43

More information

Trustees

James R. Boyle†
Grace K. Fey†
Charles L. Bardelis*
Peter S. Burgess*
Elizabeth G. Cook**
Theron S. Hoffman
Hassell H. McClellan**
James M. Oates*
John D. Richardson, Trustee Emeritus
Steven M. Roberts

  *Members of the Audit Committee
**Members of the Compliance Committee
  †Non-Independent Trustees

Officers

Keith F. Hartstein
President and Chief Executive Officer
Thomas M. Kinzler
Secretary and Chief Legal Officer
Francis V. Knox, Jr.
Chief Compliance Officer
Charles A. Rizzo
Chief Financial Officer
Gordon M. Shone
Treasurer
John G. Vrysen
Chief Operating Officer

Investment adviser

John Hancock Investment Management
Services, LLC

Subadviser

MFC Global Investment Management
(U.S.A.) Limited

Principal distributor

John Hancock Funds, LLC

Custodian

State Street Bank & Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

Independent registered
public accounting firm

PricewaterhouseCoopers LLP

Additional information about your fund is available without charge in several ways. As required by the SEC, you can access proxy voting information and quarterly portfolio information on your fund. The proxy voting information includes a description of proxy voting policies, procedures and information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30. The quarterly portfolio information that includes a complete list of the fund’s holdings for the first and third quarters of the fund’s fiscal period is filed on Form N-Q. You have access to this information:

By phone

1-800-225-5291

On the fund’s Website

www.jhfunds.com

At the SEC

www.sec.gov
1-800-SEC-0330
SEC Public Reference Room

You can also contact us:

Regular mail

John Hancock Signature Services, Inc.
P.O. Box 9510
Portsmouth, NH 03802-9510

Express mail

John Hancock Signature Services, Inc.
Mutual Fund Image Operations
164 Corporate Drive
Portsmouth, NH 03801

Month-end portfolio holdings are available at www.jhfunds.com.

44 Optimized Value Fund | Annual report

JOHN HANCOCK FAMILY OF FUNDS

DOMESTIC EQUITY

Balanced Fund

Classic Value Fund

Classic Value Fund II

Classic Value Mega Cap Fund

Growth Opportunities Fund

Large Cap Equity Fund

Large Cap Select Fund

Mid Cap Equity Fund

Optimized Value Fund

Rainier Growth Fund

Small Cap Fund

Small Cap Equity Fund

Small Cap Intrinsic Value Fund

Sovereign Investors Fund

U.S. Core Fund

U.S. Global Leaders Growth Fund

Value Opportunities Fund

ASSET ALLOCATION

TARGET RISK

Lifestyle Aggressive Portfolio

Lifestyle Balanced Portfolio

Lifestyle Conservative Portfolio

Lifestyle Growth Portfolio

Lifestyle Moderate Portfolio

TARGET DATE

Lifecycle 2045 Portfolio

Lifecycle 2040 Portfolio

Lifecycle 2035 Portfolio

Lifecycle 2030 Portfolio

Lifecycle 2025 Portfolio

Lifecycle 2020 Portfolio

Lifecycle 2015 Portfolio

Lifecycle 2010 Portfolio

RETIREMENT INCOME

Lifecycle Retirement Portfolio

Retirement Distribution Portfolio

Retirement Rising Distribution Portfolio

GLOBAL /INTERNATIONAL EQUITY

Global Opportunities Fund

Global Shareholder Yield Fund

Greater China Opportunities Fund

International Allocation Portfolio

International Classic Value Fund

International Core Fund

International Growth Fund

SPECIALTY

Financial Industries Fund

Global Real Estate Fund

Health Sciences Fund

Regional Bank Fund

INCOME

Bond Fund

Floating Rate Income Fund

Government Income Fund

High Yield Fund

Investment Grade Bond Fund

Strategic Income Fund

TAX-FREE INCOME

California Tax-Free Income Fund

High Yield Municipal Bond Fund

Massachusetts Tax-Free Income Fund

New York Tax-Free Income Fund

Tax-Free Bond Fund

MONEY MARKET

Money Market Fund

CLOSED-END

Bank and Thrift Opportunity Fund

Income Securities Trust

Investors Trust

Patriot Premium Dividend Fund II

Preferred Income Fund

Preferred Income II Fund

Preferred Income III Fund

Tax-Advantaged Dividend Income Fund

Tax-Advantaged Global Shareholder Yield Fund

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

Not part of the annual report

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 Optimized Value Fund.	3260A 8/08
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	10/08

John Hancock

Lifecycle Portfolios

Annual Report

8.31.08

CEO corner

TABLE OF CONTENTS
Managers’ commentary Market review	page 2
ANNUAL REPORT
Lifecycle 2045 Portfolio	page 4
Lifecycle 2040 Portfolio	page 6
Lifecycle 2035 Portfolio	page 8
Lifecycle 2030 Portfolio	page 10
Lifecycle 2025 Portfolio	page 12
Lifecycle 2020 Portfolio	page 14
Lifecycle 2015 Portfolio	page 16
Lifecycle 2010 Portfolio	page 18
Lifecycle Retirement Portfolio	page 20
Your expenses	page 22
Portfolio’s investments	page 28
Financial statements	page 34
Financial highlights	page 45
Notes to financial statements	page 55
Evaluation of advisory and subadvisory agreements by the Board of Trustees	page 76
Trustees and Officers	page 82
More information	page 85

To Our Shareholders,

The financial markets battled a laundry list of ills and produced negative results in a volatile 12 months ended August 31, 2008. The worst U.S. housing slump since the Great Depression, combined with a subprime mortgage-induced credit crunch, an anemic economy bordering on recession and skyrocketing oil prices for much of the period, sent the markets tumbling into bear market territory in early July. For the year ended August 31, 2008, the Standard & Poor’s 500 Index returned –11.14%, led down by financial stocks, which were the most severely impacted by the credit crisis. The pain was felt in financial markets around the world, amid inflation fears and concerns about the spillover effects of the widening U.S. credit woes.

Bonds held up much better in the 12-month period, as the Federal Reserve Board cut interest rates seven times between September 2007 and April 2008 to help bolster the economy and made other efforts to provide liquidity to the credit markets. For the 12 months ended August 31, 2008, the Lehman Brothers U.S. Aggregate Index — a broad measure of bond market performance — returned 5.86%. It’s worth noting that the 10-year return for bonds, including Treasuries, has now eclipsed the 10-year return of stocks — a very rare occurrence. In every instance when this has happened in the past, stocks went on to outperform both bonds and Treasuries over the ensuing 10-year period. Of course, there’s no guarantee that that will occur this time.

Just weeks after the Portfolios’ reporting period ended, volatility spiked even further, as the credit markets virtually ground to a halt amid investors’ growing concerns about the extent and duration of financial companies’ mortgage losses — and about their ability to carry on. The fears mounted in a period of extraordinary volatility starting in mid-September in response to the sale, bankruptcy, takeover or reorganization of numerous renowned financial institutions. Top among them was the U.S. government’s takeover of mortgage giants Fannie Mae and Freddie Mac and insurance giant AIG. In reaction, the Dow Jones Industrial Average experienced wild swings — up and down days of several hundred points a day.

Even a much-anticipated $700 billion rescue package approved in early October by the U.S. government to shore up the financial system and restore investor confidence did little to calm the markets. The contagion spread overseas, where markets worldwide plunged as European and other foreign governments began taking dramatic steps to bolster some of their ailing banks and avoid a global recession.

Recent events, as trying as they have been, are a vivid example of the importance of keeping a long-term perspective and sticking to your investment goals. With negative sentiment abounding and the prospect for continued volatility quite real, the impulse to flee is understandable. But we urge you to stay the course and keep a well-diversified portfolio, along with a longer-term investment perspective. Leaving the market can mean missing out on the inevitable moves up. Working with your investment professional on your long-term plan is especially critical in turbulent times to avoid making emotional decisions.

Sincerely,

Keith F. Hartstein,
President and Chief Executive Officer

This commentary reflects the CEO’s views as of October 21, 2008. They are subject to change at any time.

Not part of the annual report

The Lifecycle strategy

With more people living longer in retirement, saving for the future has actually become a two-step process.

Step one starts as early as possible — while you’re still working. It involves establishing an investment plan based on the proven principles of diversification and asset allocation aimed at saving enough money to reach your retirement goals. Step two begins at retirement, when making your money last becomes the key to maintaining your lifestyle. Our view is that living in retirement should be as easy as saving for it. Our solution — Lifecycle Portfolios — is a combination of the two.

The goal of the Lifecycle Portfolios is to maintain appropriate allocations based on the number of years until you reach your retirement date. Each Portfolio is a “fund of funds” which invests in a number of underlying funds. The Portfolios with dates furthest away from retirement invest more aggressively in stock funds. Over time, their allocation will gradually migrate to invest more conservatively in fixed-income funds.

When your Lifecycle Portfolio reaches its target date, it will automatically move into the Lifecycle Retirement Portfolio. This Portfolio strives to provide a rate of return that will support annual withdrawals over a long time horizon of approximately 30 years. It seeks to achieve this goal by maintaining a neutral allocation of 50% fixed income and 50% equity, although this allocation can change based on the Portfolio’s asset allocation strategy.

30 or More
Years to
Retirement

20 Years to
Retirement

10 Years to
Retirement

Equity

Fixed Income

In Retirement

Allocations may vary as a result of market swings or cash allocations held during unusual market or economic conditions.

Not part of the annual report 1

Managers’ commentary

From the MFC Global Investment Management (U.S.A.) Limited, Portfolio Management Team

Market Review

The 12 months ended August 31, 2008, proved to be challenging for the U.S. stock market, as a worsening credit crisis and surging energy and food prices for most of the period threatened to tip the economy into a recession. The Standard & Poor’s 500 Index finished the period with a –11.14% return. Conversely, the weakening economic environment was generally helpful to bonds, enabling the Lehman Brothers U.S. Aggregate Index to post a gain of 5.86%.

The beginning of the period found the S&P 500 Index in the midst of a rally that carried it to a new record close above 1,565 by October 2007. Share prices were buoyed by a series of credit-easing moves undertaken by the Federal Reserve Board in response to a wave of bad news over the summer of 2007 from companies that either issued subprime mortgages or invested in securities backed by them. However, the market soon reversed course and headed lower, as subsequent quarters brought fresh news of massive asset write-downs by a veritable who’s who of blue-chip financial companies. Even more worrisome, reports on employment, industrial production and other economic yardsticks indicated that the slowdown was spreading beyond financial companies and the beleaguered housing industry to the broader economy.

Market Index Total Returns	For the year ended August 31, 2008
U.S. Stocks
S&P 500 Index		–11.14	%
Russell Midcap Index		–8.60
Russell 2000 Index		–5.48
FTSE NAREIT Equity REIT Index		–7.04
International Stocks
MSCI EAFE Gross Total Return Index		–9.80
MSCI Emerging Markets Index		–9.83
MSCI EAFE Small Cap Gross Index		–20.65
MSCI Global Natural Resources Index1		1.89
Fixed Income
Lehman Brothers U.S. Aggregate Index		5.86
Merrill Lynch High Yield Master II Index		–1.36
JPM Global Bond Unhedged Index		9.52

¹ A blended index comprised of three MSCI indexes according to the following weightings: 60% Energy/30% Minerals and Mining/10% Paper and Forest.

The pressure on the financial sector reached a flash point in mid-March with the near-failure of investment bank Bear Stearns. The Federal Reserve Board’s proactive resolution of that crisis contributed to the period’s best rally, which lasted about two months. As fears for the potential of further economic contractions increased despite the Fed’s interest rate cuts and other efforts to boost liquidity, the market resumed its downward path. As the period ended, stocks traded listlessly not far from their lows, and ailing mortgage securitizers Fannie Mae and Freddie Mac appeared headed for some kind of a federal government rescue (which occurred shortly after the Portfolios’ fiscal year ended).

The poor performance of large financial companies dragged down the results of large caps and value shares, which normally outperform in difficult market environments. As a result, some of the strongest performance in the U.S. market came from the small-cap growth segment. All 10 S&P 500 sectors sustained losses, with financials suffering the worst damage.

Overseas, a weak U.S. dollar aided the performance of foreign stocks, but a vigorous dollar rally near period-end erased much of that cushion. At the same time, other developed economies were slowing, which helped contribute to a –9.80% result for the MSCI EAFE Gross Total Return Index. Foreign small caps fared even worse, as reflected in the MSCI Small Cap Gross Index’s –20.65% return. Surprisingly, emerging markets, a more volatile asset class, outperformed during the period, with a –9.83% return for the MSCI Emerging Markets Index.

2 Lifecycle Portfolios | Not part of the annual report

Among alternative asset classes, natural resources stocks mirrored the roller-coaster volatility of commodity prices, with the MSCI Global Natural Resources Index finishing just above break-even, at 1.89%. Meanwhile, domestic and especially foreign real estate markets were once again in the red, the latter dragged down particularly by weak performance in Asia.

“The 12 months ended August 31, 2008, proved to be challenging for the U.S. stock market…”

In the bond market, a flight to quality aided investment-grade bonds but hurt high-yield paper. TIPS (Treasury Inflation Protected Securities) were the star performers, benefiting from both their high credit quality and their built-in protection against inflation. Consequently, the Lehman Brothers TIPS Index managed a solid gain of 11.90%. At the other end of the performance spectrum were high-yield bonds, as the Merrill Lynch U.S. High Yield Master II Index fell –1.36%. Although yields remain attractive and became even more attractive, concerns of future defaults weighed heavily on the asset class.

Against this challenging backdrop, performance exceeded our benchmarks in some cases and lagged in others. Returns for Class A shares ranged from –4.35% for the Lifecycle Retirement Portfolio to –10.93% for the Lifecycle 2035 Portfolio.

Outlook

In our view, the volatility evidenced during the period highlighted the strong argument for remaining well diversified across different styles and managers, in keeping with the approach provided by the Lifecycle Portfolios. When emerging from a bear market, history tells us that an asset class leadership change occurs; however, it is not clear where this leadership will come from. There are certain areas of the market that we believe hold particular promise and have taken relatively large stakes in asset classes that have been laggards during the market downturn. For example, we believe U.S. large-cap stocks hold particular promise and that growth will outperform value stocks. We may be early in this shift, so we have maintained exposures to all parts of the market, and any shifts in positioning will occur within the context of maintaining the Portfolios’ broad diversification.

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

Sector investing is subject to greater risks than the market as a whole. International investing involves special risks, such as political, economic and currency risks, and differences in accounting standards and financial reporting. See the prospectus for the risks of investing in small-cap stocks and high-yield bonds.

Lifecycle Portfolios Class A share returns for the year ended 8-31-08

Total returns for the Portfolio are at net asset value with all distributions reinvested. These returns do not reflect the deduction of the maximum sales charge, which would reduce the performance shown above.

Past performance is no guarantee of future results.

Not part of the annual report | Lifecycle Portfolios 3

John Hancock

Lifecycle 2045 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2045.

Asset Allocation
Equity	% of Total
U.S. Large Cap	42
U.S. Mid Cap	12
U.S. Small Cap	10
International Large Cap	21
International Small Cap	5
Natural Resources	3
Emerging Markets	2
Fixed Income	% of Total
Global Bond	1
High Yield Bond	1
Intermediate Bond	1
Multi-Sector Bond	1
Treasury Inflation-Protected Securities	1
As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2045 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –10.83%, –11.56%, –11.56%, –11.32%, –11.05%, –10.77%, –11.04%, –10.76%, –10.47% and –10.47%, respectively, at net asset value. In comparison, the Portfolio’s benchmark index, the Standard & Poor’s 500 Index, returned –11.14% over the same period and the average target-date 2030+ portfolio returned –10.51%, according to Morningstar, Inc.¹

Positive asset allocation was partially offset by negative manager selection during the period. Asset classes that were especially helpful included mid caps and small caps, as well as a 3% stake in global natural resources. Less successful were allocations to international small caps, emerging markets and international blend, which detracted from our results. In December 2007, we had a slight change to policy that resulted in a 5% position in fixed income being added to the Portfolio.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

Conversely, the Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. Emerging Small Company (RCM) also was a laggard due to poor stock picking in the industrials sector. Small Cap Intrinsic Value (MFC Global U.S.A.) was hampered by unfavorable stock selection in the health care and industrials sectors.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
4	Lifecycle 2045 Portfolio | Annual report

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in the S&P 500 Index.

	Class B	Class C	Class R	1	Class R1	1	Class R2	1	Class R3	1	Class R4	1	Class R5	1	Class 1	1
Period beginning	10-30-06	10-30-06	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Without sales charge	9,846	9,846	9,890		9,934		9,988		9,946		10,000		10,055		10,056
With maximum sales charge	9,468	9,846	9,890		9,934		9,988		9,946		10,000		10,055		10,056
Index	9,664	9,664	9,664		9,664		9,664		9,664		9,664		9,664		9,664

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R	1	Class R1	1	Class R2	1	Class R3	1	Class R4	1	Class R5	1	Class 1	1
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–15.32	%	–15.90	%	–12.43	%	–11.32	%	–11.05	%	–10.77	%	–11.04	%	–10.76	%	–10.47	%	–10.47	%
Average annual returns — Since inception	–2.84	%	–2.92	%	–0.84	%	–0.60	%	–0.36	%	–0.07	%	–0.30	%	0.00	%	0.30	%	0.30	%
Cumulative total returns — 1 year	–15.32	%	–15.90	%	–12.43	%	–11.32	%	–11.05	%	–10.77	%	–11.04	%	–10.76	%	–10.47	%	–10.47	%
Cumulative total returns — Since inception	–5.18	%	–5.32	%	–1.54	%	–1.10	%	–0.66	%	–0.12	%	–0.54	%	0.00	%	0.55	%	0.56	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.43%, Class B — 2.11%, Class C — 2.13%, Class R — 1.89%, Class R1 — 1.68%, Class R2 — 1.43%, Class R3 — 1.61%, Class R4 — 1.33%, Class R5 — 1.04%, Class 1 — 1.01%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.75%, Class B — 6.09%, Class C — 5.92%, Class R — 17.54%, Class R1 — 17.49%, Class R2 — 17.12%, Class R3 — 17.26%, Class R4 — 17.13%, Class R5 — 16.83%, Class 1 — 1.45%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

¹ For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

Annual report | Lifecycle 2045 Portfolio 5

John Hancock

Lifecycle 2040 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2040.

Asset Allocation
Equity	% of Total
U.S. Large Cap	42
U.S. Mid Cap	12
U.S. Small Cap	10
International Large Cap	21
International Small Cap	5
Natural Resources	3
Emerging Markets	2
Fixed Income	% of Total
Global Bond	1
High Yield Bond	1
Intermediate Bond	1
Multi-Sector Bond	1
Treasury Inflation-Protected Securities	1
As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2040 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –10.92%, –11.56%, –11.56%, –11.33%, –11.05%, –10.86%, –11.14%, –10.76%, –10.48% and –10.48%, respectively, at net asset value. In comparison, the Portfolio’s benchmark index, the Standard & Poor’s 500 Index, returned –11.14% and the average target-date 2030+ portfolio returned –10.51%, according to Morningstar, Inc.¹ over the same period.

Positive asset allocation was partially offset by negative manager selection during the period. Asset classes that were especially helpful included mid caps and small caps, as well as a 3% stake in global natural resources. Less successful were allocations to international small caps, emerging markets and international blend, which detracted from our results. In December 2007, we had a slight change to policy that resulted in a 5% position in fixed income being added to the Portfolio.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

Conversely, the Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. Emerging Small Company (RCM) also was a laggard due to poor stock picking in the industrials sector. Small Cap Intrinsic Value (MFC Global U.S.A.) was hampered by unfavorable stock selection in the health care and industrials sectors.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
6	Lifecycle 2040 Portfolio | Annual report

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in the S&P 500 Index.

	Class B	Class C	Class R1	Class R11	Class R21	Class R31	Class R41	Class R51	Class 11
Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06
Without sales charge	9,848	9,848	9,891	9,935	9,979	9,936	10,002	10,056	10,057
With maximum sales charge	9,469	9,848	9,891	9,935	9,979	9,936	10,002	10,056	10,057
Index	9,664	9,664	9,664	9,664	9,664	9,664	9,664	9,664	9,664

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R1		Class R11		Class R21		Class R31		Class R41		Class R51		Class 11
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–15.40	%	–15.90	%	–12.43	%	–11.33	%	–11.05	%	–10.86	%	–11.14	%	–10.76	%	–10.48	%	–10.48	%
Average annual returns — Since inception	–2.89	%	–2.92	%	–0.83	%	–0.59	%	–0.35	%	–0.12	%	–0.35	%	0.01	%	0.31	%	0.31	%
Cumulative total returns — 1 year	–15.40	%	–15.90	%	–12.43	%	–11.33	%	–11.05	%	–10.86	%	–11.14	%	–10.76	%	–10.48	%	–10.48	%
Cumulative total returns — Since inception	–5.26	%	–5.31	%	–1.52	%	–1.09	%	–0.65	%	–0.21	%	–0.64	%	0.02	%	0.56	%	0.57	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.43%, Class B — 2.11%, Class C — 2.12%, Class R — 1.89%, Class R1 — 1.68%, Class R2 — 1.44%, Class R3 — 1.61%, Class R4 — 1.33%, Class R5 — 1.04%, Class 1 — 1.01%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 3.96%, Class B — 5.98%, Class C — 6.12%, Class R — 17.59%, Class R1 — 17.42%, Class R2 — 15.52%, Class R3 — 16.40%, Class R4 — 17.04%, Class R5 — 16.52%, Class 1 — 1.43%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

¹ For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

Annual report | Lifecycle 2040 Portfolio 7

John Hancock

Lifecycle 2035 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2035.

Asset Allocation
Equity	% of Total
U.S. Large Cap	42
U.S. Mid Cap	12
U.S. Small Cap	10
International Large Cap	21
International Small Cap	5
Natural Resources	3
Emerging Markets	2
Fixed Income	% of Total
Global Bond	1
High Yield Bond	1
Intermediate Bond	1
Multi-Sector Bond	1
Treasury Inflation-Protected Securities	1
As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2035 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –10.93%, –11.48%, –11.48%, –11.33%, –11.06%, –10.87%, –11.05%, –10.77%, –10.49% and –10.40%, respectively, at net asset value. In comparison, the Portfolio’s benchmark index, the Standard & Poor’s 500 Index, returned –11.14% and the average target-date 2030+ portfolio returned –10.51%, according to Morningstar, Inc.¹ over the same period.

Positive asset allocation was partially offset by negative manager selection during the period. Asset classes that were especially helpful included mid caps and small caps, as well as a 3% stake in global natural resources. Less successful were allocations to international small caps, emerging markets and international blend, which detracted from our results. In December 2007, we had a slight change to policy that resulted in a 5% position in fixed income being added to the Portfolio.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

Conversely, the Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. Emerging Small Company (RCM) also was a laggard due to poor stock picking in the industrials sector. Small Cap Intrinsic Value (MFC Global U.S.A) was hampered by unfavorable stock selection in the health care and industrials sectors.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
8	Lifecycle 2035 Portfolio | Annual report

Growth of $10,000

This chart shows what happened to a hypothetical $10,000 investment in Class A shares for the period indicated. For comparison, we’ve shown the same investment in the S&P 500 Index.

	Class B	Class C	Class R	1	Class R1	1	Class R2	1	Class R3	1	Class R4	1	Class R5	1	Class 1	1
Period beginning	10-30-06	10-30-06	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Without sales charge	9,851	9,851	9,884		9,927		9,971		9,939		9,994		10,048		10,059
With maximum sales charge	9,470	9,851	9,884		9,927		9,971		9,939		9,994		10,048		10,059
Index	9,664	9,664	9,664		9,664		9,664		9,664		9,664		9,664		9,664

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R1		Class R11		Class R21		Class R31		Class R41		Class R51		Class 11
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–15.39	%	–15.82	%	–12.35	%	–11.33	%	–11.06	%	–10.87	%	–11.05	%	–10.77	%	–10.49	%	–10.40	%
Average annual returns — Since inception	–2.93	%	–2.91	%	–0.81	%	–0.63	%	–0.40	%	–0.16	%	–0.33	%	–0.03	%	0.26	%	0.32	%
Cumulative total returns — 1 year	–15.39	%	–15.82	%	–12.35	%	–11.33	%	–11.06	%	–10.87	%	–11.05	%	–10.77	%	–10.49	%	–10.40	%
Cumulative total returns — Since inception	–5.34	%	–5.30	%	–1.49	%	–1.16	%	–0.73	%	–0.29	%	–0.61	%	–0.06	%	0.48	%	0.59	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.42%, Class B — 2.10%, Class C — 2.11%, Class R — 1.87%, Class R1 — 1.66%, Class R2 — 1.41%, Class R3 — 1.59%, Class R4 — 1.30%, Class R5 — 1.02%, Class 1 — 1.00%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 3.27%, Class B — 5.07%, Class C — 4.93%, Class R — 17.28%, Class R1 — 17.09%, Class R2 — 16.49%, Class R3 — 17.02%, Class R4 — 16.72%, Class R5 — 15.88%, Class 1 — 1.25%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

¹ For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.

Annual report | Lifecycle 2035 Portfolio 9

John Hancock

Lifecycle 2030 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2030.

Asset Allocation
Equity	% of Total
U.S. Large Cap	42
U.S. Mid Cap	12
U.S. Small Cap	10
International Large Cap	20
International Small Cap	5
Natural Resources	3
Emerging Markets	2
Fixed Income	% of Total
High Yield Bond	2
Global Bond	1
Intermediate Bond	1
Multi-Sector Bond	1
Treasury Inflation-Protected Securities	1
As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2030 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –10.66%, –11.37%, –11.37%, –11.18%, –10.92%, –10.67%, –10.83%, –10.66%, –10.41% and –10.41%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –11.14%, the Lehman Brothers U.S. Aggregate Index returned 5.86% and the Portfolio’s blended benchmark — 90% S&P 500 Index/10% Lehman Brothers U.S. Aggregate Index — returned –9.49% over the same period. At the same time, the average target-date 2030+ portfolio returned –10.51%, according to Morningstar, Inc.¹

Positive asset allocation was roughly offset by negative manager selection during the period. The Portfolio benefited from its exposure to mid caps and small caps, as well as its 3% stake in global natural resources. Less successful were allocations to international small caps, emerging markets and international blend, which detracted from our results.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

Conversely, the Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. Emerging Small Company (RCM) also was a laggard due to poor stock picking in the industrials sector. Small Cap Intrinsic Value (MFC Global U.S.A.) was hampered by unfavorable stock selection in the health care and industrials sectors.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
10	Lifecycle 2030 Portfolio | Annual report

Growth of $10,000

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

	Class B	Class C	Class R	1	Class R1	1	Class R2	1	Class R3	1	Class R4	1	Class R5	1	Class 1	1
Period beginning	10-30-06	10-30-06	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Without sales charge	9,806	9,806	9,836		9,886		9,936		9,898		9,949		10,000		10,001
With maximum sales charge	9,426	9,806	9,836		9,886		9,936		9,898		9,949		10,000		10,001
Index2,3	9,794	9,794	9,794		9,794		9,794		9,794		9,794		9,794		9,794

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R1		Class R11		Class R21		Class R31		Class R41		Class R51		Class 11
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–15.10	%	–15.75	%	–12.25	%	–11.18	%	–10.92	%	–10.67	%	–10.83	%	–10.66	%	–10.41	%	–10.41	%
Average annual returns — Since inception	–3.02	%	–3.16	%	–1.06	%	–0.89	%	–0.62	%	–0.35	%	–0.56	%	–0.28	%	0.00	%	0.01	%
Cumulative total returns — 1 year	–15.10	%	–15.75	%	–12.25	%	–11.18	%	–10.92	%	–10.67	%	–10.83	%	–10.66	%	–10.41	%	–10.41	%
Cumulative total returns — Since inception	–5.50	%	–5.74	%	–1.94	%	–1.64	%	–1.14	%	–0.64	%	–1.02	%	–0.51	%	0.00	%	0.01	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.41%, Class B — 2.09%, Class C — 2.09%, Class R — 1.85%, Class R1 — 1.64%, Class R2 — 1.39%, Class R3 — 1.57%, Class R4 — 1.28%, Class R5 — 1.00%, Class 1 — 0.98%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.80%, Class B — 4.68%, Class C — 4.60%, Class R — 16.82%, Class R1 — 17.02%, Class R2 — 16.73%, Class R3 — 16.96%, Class R4 — 16.66%, Class R5 — 16.35%, Class 1 — 1.16%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

1	For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.
2	A blended index is used combining 90% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 10% of the Lehman Brothers U.S. Aggregate Index, an unmanaged index of dollar-denominated and nonconvertible investment- grade debt issues.
3	Since inception returns for the index begin on the month end closest to the actual inception date of the Portfolio.

Annual report | Lifecycle 2030 Portfolio 11

John Hancock

Lifecycle 2025 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2025.

Asset Allocation
Equity	% of Total
U.S. Large Cap		41
U.S. Mid Cap		10
U.S. Small Cap		8
International Large Cap		18
International Small Cap		5
Emerging Markets		2
Natural Resources		2
Real Estate		2
Fixed Income	% of Total
High Yield Bond		4
Intermediate Bond		3
Multi-Sector Bond		2
Treasury Inflation-Protected Securities		2
Global Bond		1

As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2025 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –10.08%, –10.87%, –10.87%, –10.66%, –10.42%, –10.26%,
–10.41%, –10.16%, –9.91% and –9.81%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –11.14%, the Lehman Brothers U.S. Aggregate Index returned 5.86% and the Portfolio’s blended benchmark — 90% S&P 500 Index/10% Lehman Brothers U.S. Aggregate Index — returned –9.49% over the same period. At the same time, the average target-date 2015–2029 portfolio returned –7.76%, according to Morningstar, Inc.¹

Manager selection was unrewarding during the period, a factor that was partially offset by favorable asset allocation. The Portfolio benefited from its roughly 2% stake in global natural resources, as well as from a presence in mid caps and small caps. Less successful were allocations to international small caps, emerging markets and international blend, which detracted from our results.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

Conversely, the Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. Emerging Small Company (RCM) also was a laggard due to poor stock picking in the industrials sector. Small Cap Intrinsic Value (MFC Global U.S.A.) was hampered by unfavorable stock selection in the health care and industrials sectors.

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

12 Lifecycle 2025 Portfolio | Annual report

Growth of $10,000

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

	Class B	Class C	Class R1	Class R11	Class R21	Class R31	Class R41	Class R51	Class 11
Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06
Without sales charge	9,799	9,799	9,838	9,878	9,918	9,890	9,941	9,992	10,004
With maximum sales charge	9,418	9,799	9,838	9,878	9,918	9,890	9,941	9,992	10,004
Index2,3	9,794	9,794	9,794	9,794	9,794	9,794	9,794	9,794	9,794

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R1		Class R11		Class R21		Class R31		Class R41		Class R51		Class 11
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–14.57	%	–15.27	%	–11.75	%	–10.66	%	–10.42	%	–10.26	%	–10.41	%	–10.16	%	–9.91	%	–9.81	%
Average annual returns — Since inception	–3.06	%	–3.20	%	–1.10	%	–0.88	%	–0.66	%	–0.44	%	–0.60	%	–0.32	%	–0.04	%	0.02	%
Cumulative total returns — 1 year	–14.57	%	–15.27	%	–11.75	%	–10.66	%	–10.42	%	–10.26	%	–10.41	%	–10.16	%	–9.91	%	–9.81	%
Cumulative total returns — Since inception	–5.58	%	–5.82	%	–2.01	%	–1.62	%	–1.22	%	–0.82	%	–1.10	%	–0.59	%	–0.08	%	0.04	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.40%, Class B — 2.08%, Class C — 2.09%, Class R — 1.85%, Class R1 — 1.64%, Class R2 — 1.39%, Class R3 — 1.58%, Class R4 — 1.29%, Class R5 — 1.00%, Class 1 — 0.97%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 3.02%, Class B — 4.59%, Class C — 4.58%, Class R — 17.08%, Class R1 — 16.91%, Class R2 — 16.47%, Class R3 — 15.20%, Class R4 — 16.54%, Class R5 — 16.11%, Class 1 — 1.08%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

1	For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.
2	A blended index is used combining 90% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 10% of the Lehman Brothers U.S. Aggregate Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.
3	Since inception returns for the index begin on the month end closest to the actual inception date of the Portfolio.

Annual report | Lifecycle 2025 Portfolio 13

John Hancock

Lifecycle 2020 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2020.

Asset Allocation
Equity	% of Total
U.S. Large Cap		41
International Large Cap		16
U.S. Mid Cap		7
U.S. Small Cap		6
International Small Cap		3
Emerging Markets		2
Natural Resources		2
Real Estate		2
Fixed Income	% of Total
High Yield Bond		7
Intermediate Bond		4
Multi-Sector Bond		4
Treasury Inflation-Protected Securities		3
Global Bond		2
Loan Participation		1

As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2020 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –8.82%, –9.52%, –9.52%, –9.32%, –9.07%, –8.73%, –8.98%, –8.72%, –8.47% and –8.38%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned
–11.14%, the Lehman Brothers U.S. Aggregate Index returned 5.86% and the Portfolio’s blended benchmark — 80% S&P 500 Index/20% Lehman Brothers U.S. Aggregate Index — returned –7.81% over the same period. At the same time, the average target-date 2015–2029 portfolio returned –7.76%, according to Morningstar, Inc.¹

Manager selection was unrewarding during the period, while asset allocation had a modest positive impact. The Portfolio benefited from its roughly 2% stake in global natural resources. To a lesser extent, a presence in mid caps and small caps was beneficial as well. Less successful were allocations to high-yield bonds, international small caps and emerging markets, which detracted from our results.

The Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. Emerging Small Company (RCM) also was a laggard due to poor stock picking in the industrials sector. On the fixed-income side, High Income (MFC Global U.S.A.) was a detractor, as investments in the airlines and gaming industries fared poorly.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

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

14 Lifecycle 2020 Portfolio | Annual report

Growth of $10,000

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

	Class B	Class C	Class R1	Class R11	Class R21	Class R31	Class R41	Class R51	Class 11
Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06
Without sales charge	9,884	9,884	9,914	9,964	10,014	9,976	10,027	10,078	10,090
With maximum sales charge	9,500	9,884	9,914	9,964	10,014	9,976	10,027	10,078	10,090
Index2,3	9,932	9,932	9,932	9,932	9,932	9,932	9,932	9,932	9,932

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R1		Class R11		Class R21		Class R31		Class R41		Class R51		Class 11
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–13.39	%	–13.98	%	–10.41	%	–9.32	%	–9.07	%	–8.73	%	–8.98	%	–8.72	%	–8.47	%	–8.38	%
Average annual returns — Since inception	–2.67	%	–2.74	%	–0.63	%	–0.47	%	–0.20	%	0.08	%	–0.13	%	0.15	%	0.42	%	0.49	%
Cumulative total returns — 1 year	–13.39	%	–13.98	%	–10.41	%	–9.32	%	–9.07	%	–8.73	%	–8.98	%	–8.72	%	–8.47	%	–8.38	%
Cumulative total returns — Since inception	–4.86	%	–5.00	%	–1.16	%	–0.86	%	–0.36	%	0.14	%	–0.24	%	0.27	%	0.78	%	0.90	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.39%, Class B — 2.07%, Class C — 2.07%, Class R — 1.83%, Class R1 — 1.62%, Class R2 — 1.37%, Class R3 — 1.55%, Class R4 — 1.27%, Class R5 — 0.98%, Class 1 — 0.95%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.34%, Class B — 4.04%, Class C — 4.27%, Class R — 17.00%, Class R1 — 16.89%, Class R2 — 15.98%, Class R3 — 16.33%, Class R4 — 16.50%, Class R5 — 8.97%, Class 1 — 1.07%.

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 reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

1	For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.
2	A blended index is used combining 80% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 20% of the Lehman Brothers U.S. Aggregate Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.
3	Since inception returns for the index begin on the month end closest to the actual inception date of the Portfolio.

Annual report | Lifecycle 2020 Portfolio 15

John Hancock

Lifecycle 2015 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2015.

Asset Allocation

Equity	% of Total
U.S. Large Cap		38
U.S. Mid Cap		5
U.S. Small Cap		3
International Large Cap		11
International Small Cap		3
Real Estate		4
Emerging Markets		2
Natural Resources		2
Fixed Income	% of Total
High Yield Bond		11
Intermediate Bond		7
Multi-Sector Bond		6
Global Bond		3
Treasury Inflation-Protected Securities		3
Loan Participation		2

As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2015 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –7.16%, –7.86%, –7.86%, –7.66%, –7.41%, –7.16%, –7.32%, –7.06%, –6.81% and –6.80%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –11.14%, the Lehman Brothers U.S. Aggregate Index returned 5.86% and the Portfolio’s blended benchmark — 70% S&P 500 Index/30% Lehman Brothers U.S. Aggregate Index — returned –6.10% over the same period. At the same time, the average target-date 2015–2029 portfolio returned –7.76%, according to Morningstar, Inc.¹

Both manager selection and asset allocation were unrewarding during the period. The asset classes having the most negative impact on performance were high-yield bonds, international small caps and emerging markets. On the other hand, the Portfolio benefited from its roughly 2% stake in global natural resources. To a lesser extent, a presence in mid caps, TIPS (Treasury Inflation Protected Securities) and domestic REITs (real estate investment trusts) was beneficial as well.

The Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. On the fixed-income side, High Income (MFC Global U.S.) was a detractor, as investments in the airlines and gaming industries fared poorly. In the case of Strategic Bond (WAMCO), positions in mortgage-backed securities, asset-backed securities and high-yield securities were counterproductive.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

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

16 Lifecycle 2015 Portfolio | Annual report

Growth of $10,000

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

	Class B		Class C		Class R		1	Class R1		1	Class R2		1	Class R3		1	Class R4		1	Class R5		1	Class 1		1
Period beginning		10-30-06		10-30-06		10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06
Without sales charge		9,926		9,926		9,967			10,007			10,057			10,019			10,070			10,121			10,132
With maximum sales charge		9,542		9,926		9,967			10,007			10,057			10,019			10,070			10,121			10,132
Index2,3		10,070		10,070		10,070			10,070			10,070			10,070			10,070			10,070			10,070

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A			Class B			Class C			Class R		1	Class R1		1	Class R2		1	Class R3		1	Class R4		1	Class R5		1	Class 1		1
Inception		10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06
Average annual returns — 1 year		–11.80	%		–12.40	%		–8.77	%		–7.66	%		–7.41	%		–7.16	%		–7.32	%		–7.06	%		–6.81	%		–6.80	%
Average annual returns — Since inception		–2.44	%		–2.51	%		–0.40	%		–0.18	%		0.04	%		0.31	%		0.10	%		0.38	%		0.66	%		0.72	%
Cumulative total returns — 1 year		–11.80	%		–12.40	%		–8.77	%		–7.66	%		–7.41	%		–7.16	%		–7.32	%		–7.06	%		–6.81	%		–6.80	%
Cumulative total returns — Since inception		–4.45	%		–4.58	%		–0.74	%		–0.33	%		0.07	%		0.57	%		0.19	%		0.70	%		1.21	%		1.32	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.40%, Class B — 2.09%, Class C — 2.09%, Class R — 1.85%, Class R1 — 1.64%, Class R2 — 1.39%, Class R3 — 1.57%, Class R4 — 1.29%, Class R5 — 1.00%, Class 1 — 0.97%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.96%, Class B — 4.05%, Class C — 4.78%, Class R — 17.40%, Class R1 — 17.24%, Class R2 — 16.08%, Class R3 — 17.15%, Class R4 — 16.85%, Class R5 — 16.54%, Class 1 — 1.13%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

1	For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.
2	A blended index is used combining 70% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 30% of the Lehman Brothers U.S. Aggregate Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.
3	Since inception returns for the index begin on the month end closest to the actual inception date of the Portfolio.

Annual report | Lifecycle 2015 Portfolio 17

John Hancock

Lifecycle 2010 Portfolio

Goal and strategy

The Portfolio seeks high total return until its target retirement date. To pursue this goal, the Portfolio, which is a fund of funds, invests under normal market conditions, substantially all of its assets in underlying funds using an asset allocation strategy designed for investors expected to retire in 2010.

Asset Allocation

Equity	% of Total
U.S. Large Cap		33
U.S. Mid Cap		2
U.S. Small Cap		2
International Large Cap		9
International Small Cap		2
Real Estate		5
Emerging Markets		2
Natural Resources		2
Fixed Income	% of Total
High Yield Bond		13
Intermediate Bond		12
Multi-Sector Bond		9
Treasury Inflation-Protected Securities		4
Global Bond		3
Loan Participation		2
As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle 2010 Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –5.87%, –6.48%, –6.47%, –6.27%, –6.02%, –5.77%, –6.02%, –5.76%, –5.51% and –5.41%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –11.14%, the Lehman Brothers U.S. Aggregate Index returned 5.86% and the Portfolio’s blended benchmark — 60% S&P 500 Index/40% Lehman Brothers U.S. Aggregate Index — returned –4.43% over the same period. At the same time, the average target-date 2000–2014 porfolio returned –4.07%, according to Morningstar, Inc.¹

Both manager selection and asset allocation were unrewarding during the period. The asset classes having the most negative impact on performance were high-yield bonds, international small caps and emerging markets. On the other hand, the Portfolio benefited from its roughly 2% stake in global natural resources. To a lesser extent, a presence in TIPS (Treasury Inflation Protected Securities), domestic REITs (real estate investment trusts) and small caps was beneficial as well.

The Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. On the fixed-income side, High Income (MFC Global U.S.) was a detractor, as investments in the airlines and gaming industries fared poorly. In the case of Strategic Bond (WAMCO), positions in mortgage-backed securities, asset-backed securities and high-yield securities were counterproductive.

Funds that boosted performance included one of our large-cap value holdings — Value & Restructuring (Columbia), which benefited from an overweighting in the strong-performing energy sector. Another fund that lifted our results was Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

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

18 Lifecycle 2010 Portfolio | Annual report

Growth of $10,000

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

	Class B		Class C		Class R		1	Class R1		1	Class R2		1	Class R3		1	Class R4		1	Class R5		1	Class 1		1
Period beginning		10-30-06		10-30-06		10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06
Without sales charge		9,947		9,957		9,987			10,027			10,078			10,039			10,091			10,142			10,153
With maximum sales charge		9,561		9,957		9,987			10,027			10,078			10,039			10,091			10,142			10,153
Index2,3		10,202		10,202		10,202			10,202			10,202			10,202			10,202			10,202			10,202

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A			Class B			Class C			Class R		1	Class R1		1	Class R2		1	Class R3		1	Class R4		1	Class R5		1	Class 1		1
Inception		10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06			10-30-06
Average annual returns — 1 year		–10.53	%		–11.08	%		–7.39	%		–6.27	%		–6.02	%		–5.77	%		–6.02	%		–5.76	%		–5.51	%		–5.41	%
Average annual returns — Since inception		–2.39	%		–2.40	%		–0.23	%		–0.07	%		0.15	%		0.42	%		0.21	%		0.49	%		0.77	%		0.83	%
Cumulative total returns — 1 year		–10.53	%		–11.08	%		–7.39	%		–6.27	%		–6.02	%		–5.77	%		–6.02	%		–5.76	%		–5.51	%		–5.41	%
Cumulative total returns — Since inception		–4.35	%		–4.39	%		–0.43	%		–0.13	%		0.27	%		0.78	%		0.39	%		0.91	%		1.42	%		1.53	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.38%, Class B — 2.05%, Class C — 2.07%, Class R — 1.84%, Class R1 — 1.62%, Class R2 — 1.37%, Class R3 — 1.55%, Class R4 — 1.27%, Class R5 — 0.98%, Class 1 — 0.95%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 3.20%, Class B — 5.88%, Class C — 4.95%, Class R — 17.87%, Class R1 — 17.64%, Class R2 — 17.37%, Class R3 — 17.56%, Class R4 — 17.26%, Class R5 — 16.95%, Class 1 — 1.31%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

1	For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.
2	A blended index is used combining 60% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 40% of the Lehman Brothers U.S. Aggregate Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.
3	Since inception returns for the index begin on the month end closest to the actual inception date of the Portfolio.

Annual report | Lifecycle 2010 Portfolio 19

John Hancock
Lifecycle Retirement Portfolio

Goal and strategy

The Portfolio seeks maximum real return, consistent with the preservation of capital and prudent investment management. To pursue this goal, the Portfolio, which is a fund of funds, may invest in various funds of the John Hancock Funds complex that as a group hold a wide variety of equity and fixed-income securities.

Asset Allocation
Equity	% of Total
U.S. Large Cap		19
U.S. Mid Cap		3
U.S. Small Cap		2
International Large Cap		4
International Small Cap		2
Emerging Markets		3
Real Estate		8
Commodities		3
Natural Resources		2

Fixed Income	% of Total
High Yield Bond		15
Intermediate Bond		11
Short-term Securities		10
Treasury Inflation-Protected Securities		9
Multi-Sector Bond		7
Global Bond		2

As a percentage of net assets on August 31, 2008.

Performance review

For the 12 months ended August 31, 2008, the Lifecycle Retirement Portfolio’s Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares returned –4.35%, –5.03%, –5.03%, –4.78%, –4.54%, –4.30%, –4.39%, –4.22%, –3.86% and –3.83%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –11.14%, the Lehman Brothers U.S. Aggregate Index returned 5.86% and the Portfolio’s blended benchmark — 50% S&P 500 Index/50% Lehman Brothers U.S. Aggregate Index — returned –2.74% over the same period. At the same time, the average target-date 2000-2014 porfolio returned –4.07%, according to Morningstar, Inc.¹

Positive asset allocation was overshadowed by negative manager selection during the period. The Portfolio benefited from a small exposure to the strong commodities markets and from a separate position in global natural resources. An allocation to TIPS (Treasury Inflation Protected Securities) was beneficial as well. On the other hand, high-yield bonds were a drag on performance, along with global REITs (real estate investment trusts) and emerging markets.

The Portfolio’s position in Core Equity (Legg Mason) was a significant drag on performance. This fund is run by Bill Miller, who earned the distinction of outperforming the S&P 500 for 15 consecutive years, from 1991 through 2005. Miller is a value manager, meaning he attempts to take positions in stocks with value that has yet to be discovered by other investors. His large stake in some beaten-down financials has been untimely to date, but might still be vindicated by subsequent market action. That said, we are in regular contact with Miller and are monitoring the situation closely. To a lesser extent, High Income (MFC Global U.S.) also was a detractor, as investments in the airlines and gaming industries fared poorly. In the case of Strategic Bond (WAMCO), positions in mortgage-backed securities, asset-backed securities and high-yield securities were counterproductive.

Also among our fixed-income holdings, Total Return (PIMCO) boosted performance. On the equities side, performance benefited from Natural Resources (Wellington). In that case, overweighting energy names and underweighting the weak-performing paper and forest products segment paid off.

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

20 Lifecycle Retirement Portfolio | Annual report

Growth of $10,000

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

	Class B	Class C	Class R1	Class R11	Class R21	Class R31	Class R41	Class R51	Class 1	1
Period beginning	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06	10-30-06
Without sales charge	10,017	10,017	10,051	10,093	10,135	10,113	10,160	10,217	10,222
With maximum sales charge	9,638	10,017	10,051	10,093	10,135	10,113	10,160	10,217	10,222
Index2,3	10,334	10,334	10,334	10,334	10,334	10,334	10,334	10,334	10,334

Performance chart

Total returns with maximum sales charge (POP) for the period ended August 31, 2008.

	Class A		Class B		Class C		Class R1		Class R11		Class R21		Class R31		Class R41		Class R51		Class 11
Inception	10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06		10-30-06
Average annual returns — 1 year	–9.10	%	–9.62	%	–5.95	%	–4.78	%	–4.54	%	–4.30	%	–4.39	%	–4.22	%	–3.86	%	–3.83	%
Average annual returns — Since inception	–1.94	%	–1.98	%	0.09	%	0.28	%	0.50	%	0.73	%	0.61	%	0.86	%	1.17	%	1.20	%
Cumulative total returns — 1 year	–9.10	%	–9.62	%	–5.95	%	–4.78	%	–4.54	%	–4.30	%	–4.39	%	–4.22	%	–3.86	%	–3.83	%
Cumulative total returns — Since inception	–3.55	%	–3.62	%	0.17	%	0.51	%	0.93	%	1.35	%	1.13	%	1.60	%	2.17	%	2.22	%

Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%, and the applicable contingent deferred sales charge (CDSC) on Class B and Class C shares. The Class B shares’ CDSC declines annually between years 1–6 according to the following schedule: 5, 4, 3, 3, 2, 1%. No sales charge will be assessed after the sixth year. Class C shares held for less than one year are subject to a 1% CDSC. Sales charge is not applicable for Class R, Class R1, Class R2, 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 December 31, 2008. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.38%, Class B — 2.06%, Class C — 2.08%, Class R — 1.82%, Class R1 — 1.61%, Class R2 — 1.36%, Class R3 — 1.54%, Class R4 — 1.25%, Class R5 — 0.97%, Class 1 — 0.95%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.94%, Class B — 3.87%, Class C — 3.29%, Class R — 17.02%, Class R1 — 16.79%, Class R2 — 16.47%, Class R3 — 16.71%, Class R4 — 16.41%, Class R5 — 16.11%, Class 1 — 1.08%.

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 would pay on fund distributions or the redemption of fund shares.

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

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

Since inception performance is calculated with an opening price on the inception date of the Portfolio.

1	For certain types of investors as described in the Portfolio’s Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 share prospectuses.
2	A blended index is used combining 50% of the Standard & Poor’s 500 Index, an unmanaged index that includes 500 widely traded common stocks, and 50% of the Lehman Brothers U.S. Aggregate Index, an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.
3	Since inception returns for the index begin on the month end closest to the actual inception date of the Portfolio.

Annual report | Lifecycle Retirement Portfolio 21

Your expenses

As a shareholder of John Hancock Funds II Lifecycle Portfolios, 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 underlying funds in which the Portfolio invests. Because the underlying funds have varied operating expenses and transaction costs and the Portfolio may own different proportions of the underlying funds at different times, the amount of expenses incurred indirectly by the Portfolio will vary. 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 portfolios 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 (March 1, 2008 through August 31, 2008).

Actual expenses:

The first line of each share class in the table 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.

22 Lifecycle Portfolios | Annual report

Shareholder expense example chart

		Beginning Account Value 3-1-08		Ending Account Value 8-31-08		Expenses Paid During Period 3-1-08–8-31-08		1	Annualized Expense Ratio		2,3
Lifecycle 2045 Portfolio
Class A	Actual	$	1,000.00	$	954.10	$	3.19			0.65	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.90		3.30			0.65	%
Class B	Actual		1,000.00		949.80		6.67			1.36	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.90			1.36	%
Class C	Actual		1,000.00		949.80		6.62			1.35	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.85			1.35	%
Class R	Actual		1,000.00		950.90		5.88			1.20	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.10		6.09			1.20	%
Class R1	Actual		1,000.00		952.00		4.66			0.95	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.40		4.82			0.95	%
Class R2	Actual		1,000.00		954.10		3.44			0.70	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.56			0.70	%
Class R3	Actual		1,000.00		952.00		4.17			0.85	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.32			0.85	%
Class R4	Actual		1,000.00		954.10		2.70			0.55	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.40		2.80			0.55	%
Class R5	Actual		1,000.00		956.20		1.23			0.25	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.90		1.27			0.25	%
Class 1	Actual		1,000.00		955.30		0.98			0.20	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.10		1.02			0.20	%
Lifecycle 2040 Portfolio
Class A	Actual	$	1,000.00	$	953.10	$	3.19			0.65	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.90		3.30			0.65	%
Class B	Actual		1,000.00		949.80		6.67			1.36	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.90			1.36	%
Class C	Actual		1,000.00		949.80		6.67			1.36	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.90			1.36	%
Class R	Actual		1,000.00		951.00		5.88			1.20	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.10		6.09			1.20	%
Class R1	Actual		1,000.00		952.00		4.66			0.95	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.40		4.82			0.95	%
Class R2	Actual		1,000.00		953.10		3.44			0.70	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.56			0.70	%
Class R3	Actual		1,000.00		952.00		4.17			0.85	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.32			0.85	%
Class R4	Actual		1,000.00		954.20		2.70			0.55	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.40		2.80			0.55	%
Class R5	Actual		1,000.00		956.30		1.23			0.25	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.90		1.27			0.25	%
Class 1	Actual		1,000.00		956.30		0.98			0.20	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.10		1.02			0.20	%

Annual report | Lifecycle Portfolios 23

Shareholder expense example chart, continued

		Beginning Account Value 3-1-08		Ending Account Value 8-31-08		Expenses Paid During Period 3-1-08–8-31-08		1	Annualized Expense Ratio		2,3
Lifecycle 2035 Portfolio
Class A	Actual	$	1,000.00	$	953.40	$	3.19			0.65	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.90		3.30			0.65	%
Class B	Actual		1,000.00		950.10		6.57			1.34	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.40		6.80			1.34	%
Class C	Actual		1,000.00		950.10		6.62			1.35	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.85			1.35	%
Class R	Actual		1,000.00		950.20		5.78			1.18	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.20		5.99			1.18	%
Class R1	Actual		1,000.00		951.30		4.61			0.94	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.40		4.77			0.94	%
Class R2	Actual		1,000.00		953.40		3.54			0.72	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.50		3.66			0.72	%
Class R3	Actual		1,000.00		952.30		4.17			0.85	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.32			0.85	%
Class R4	Actual		1,000.00		953.50		2.65			0.54	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.40		2.75			0.54	%
Class R5	Actual		1,000.00		955.50		1.18			0.24	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.90		1.22			0.24	%
Class 1	Actual		1,000.00		956.50		0.93			0.19	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.20		0.97			0.19	%
Lifecycle 2030 Portfolio
Class A	Actual	$	1,000.00	$	955.10	$	3.10			0.63	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.00		3.20			0.63	%
Class B	Actual		1,000.00		951.00		6.52			1.33	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.75			1.33	%
Class C	Actual		1,000.00		952.00		6.53			1.33	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.75			1.33	%
Class R	Actual		1,000.00		951.90		5.79			1.18	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.20		5.99			1.18	%
Class R1	Actual		1,000.00		953.90		4.57			0.93	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.72			0.93	%
Class R2	Actual		1,000.00		955.00		3.44			0.70	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.56			0.70	%
Class R3	Actual		1,000.00		954.00		4.08			0.83	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.22			0.83	%
Class R4	Actual		1,000.00		955.00		2.56			0.52	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.64			0.52	%
Class R5	Actual		1,000.00		957.00		1.28			0.26	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.80		1.32			0.26	%
Class 1	Actual		1,000.00		957.00		0.89			0.18	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.20		0.92			0.18	%

24 Lifecycle Portfolios | Annual report

Shareholder expense example chart, continued

		Beginning Account Value 3-1-08		Ending Account Value 8-31-08		Expenses Paid During Period 3-1-08–8-31-08		1	Annualized Expense Ratio		2,3
Lifecycle 2025 Portfolio
Class A	Actual	$	1,000.00	$	956.00	$	3.10			0.63	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.00		3.20			0.63	%
Class B	Actual		1,000.00		952.90		6.53			1.33	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.75			1.33	%
Class C	Actual		1,000.00		952.90		6.53			1.33	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.75			1.33	%
Class R	Actual		1,000.00		953.90		5.75			1.17	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.30		5.94			1.17	%
Class R1	Actual		1,000.00		954.90		4.52			0.92	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.67			0.92	%
Class R2	Actual		1,000.00		954.90		3.49			0.71	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.61			0.71	%
Class R3	Actual		1,000.00		954.90		4.03			0.82	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.17			0.82	%
Class R4	Actual		1,000.00		956.00		2.56			0.52	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.64			0.52	%
Class R5	Actual		1,000.00		958.00		1.08			0.22	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.00		1.12			0.22	%
Class 1	Actual		1,000.00		959.00		0.84			0.17	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.30		0.87			0.17	%
Lifecycle 2020 Portfolio
Class A	Actual	$	1,000.00	$	960.20	$	3.05			0.62	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.00		3.15			0.62	%
Class B	Actual		1,000.00		957.10		6.49			1.32	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.70			1.32	%
Class C	Actual		1,000.00		956.20		6.49			1.32	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.70			1.32	%
Class R	Actual		1,000.00		957.10		5.76			1.17	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.30		5.94			1.17	%
Class R1	Actual		1,000.00		959.10		4.53			0.92	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.67			0.92	%
Class R2	Actual		1,000.00		960.10		3.35			0.68	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.70		3.46			0.68	%
Class R3	Actual		1,000.00		959.10		4.04			0.82	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.17			0.82	%
Class R4	Actual		1,000.00		960.20		2.56			0.52	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.64			0.52	%
Class R5	Actual		1,000.00		962.20		1.18			0.24	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.90		1.22			0.24	%
Class 1	Actual		1,000.00		962.20		0.84			0.17	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.30		0.87			0.17	%

Annual report | Lifecycle Portfolios 25

Shareholder expense example chart, continued

		Beginning Account Value 3-1-08		Ending Account Value 8-31-08		Expenses Paid During Period 3-1-08–8-31-08		1	Annualized Expense Ratio		2,3
Lifecycle 2015 Portfolio
Class A	Actual	$	1,000.00	$	966.00	$	3.11			0.63	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.00		3.20			0.63	%
Class B	Actual		1,000.00		962.00		6.56			1.33	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.50		6.75			1.33	%
Class C	Actual		1,000.00		962.90		6.61			1.34	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.40		6.80			1.34	%
Class R	Actual		1,000.00		962.90		5.82			1.18	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.20		5.99			1.18	%
Class R1	Actual		1,000.00		963.90		4.54			0.92	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.67			0.92	%
Class R2	Actual		1,000.00		965.90		3.46			0.70	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.56			0.70	%
Class R3	Actual		1,000.00		964.90		4.15			0.84	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.27			0.84	%
Class R4	Actual		1,000.00		966.00		2.62			0.53	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.69			0.53	%
Class R5	Actual		1,000.00		968.00		1.09			0.22	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.00		1.12			0.22	%
Class 1	Actual		1,000.00		968.00		0.89			0.18	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.20		0.92			0.18	%
Lifecycle 2010 Portfolio
Class A	Actual	$	1,000.00	$	969.00	$	3.22			0.65	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.90		3.30			0.65	%
Class B	Actual		1,000.00		966.00		6.67			1.35	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.85			1.35	%
Class C	Actual		1,000.00		967.00		6.67			1.35	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.30		6.85			1.35	%
Class R	Actual		1,000.00		966.90		5.93			1.20	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.10		6.09			1.20	%
Class R1	Actual		1,000.00		967.90		4.70			0.95	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.40		4.82			0.95	%
Class R2	Actual		1,000.00		969.90		3.52			0.71	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.61			0.71	%
Class R3	Actual		1,000.00		968.90		4.21			0.85	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.32			0.85	%
Class R4	Actual		1,000.00		970.00		2.77			0.56	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.30		2.85			0.56	%
Class R5	Actual		1,000.00		971.00		1.34			0.27	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.80		1.37			0.27	%
Class 1	Actual		1,000.00		972.00		0.99			0.20	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.10		1.02			0.20	%

26 Lifecycle Portfolios | Annual report

FINANCIAL STATEMENTS

Shareholder expense example chart, continued

		Beginning Account Value 3-1-08		Ending Account Value 8-31-08		Expenses Paid During Period 3-1-08–8-31-08		1	Annualized Expense Ratio		2,3
Lifecycle Retirement Portfolio
Class A	Actual	$	1,000.00	$	956.50	$	3.34			0.68	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.70		3.46			0.68	%
Class B	Actual		1,000.00		949.70		6.76			1.38	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.20		7.00			1.38	%
Class C	Actual		1,000.00		949.70		6.76			1.38	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,018.20		7.00			1.38	%
Class R	Actual		1,000.00		952.20		5.99			1.22	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,019.00		6.19			1.22	%
Class R1	Actual		1,000.00		954.60		4.81			0.98	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.20		4.98			0.98	%
Class R2	Actual		1,000.00		957.00		3.59			0.73	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,021.50		3.71			0.73	%
Class R3	Actual		1,000.00		956.10		4.33			0.88	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,020.70		4.47			0.88	%
Class R4	Actual		1,000.00		957.80		2.85			0.58	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,022.20		2.95			0.58	%
Class R5	Actual		1,000.00		961.40		1.38			0.28	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,023.70		1.42			0.28	%
Class 1	Actual		1,000.00		961.70		1.13			0.23	%
	Hypothetical (5% annualized return before expenses)		1,000.00		1,024.00		1.17			0.23	%

1	Expenses 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 (184) and divided by 366 (to reflect the one-half year period).
2	Lifecycle Portfolios’ expense ratios do not include fees and expenses indirectly incurred by the underlying funds.
3	Ratios 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 Portfolios was as follows:

Lifecycle 2045

Lifecycle 2040

Lifecycle 2035

Lifecycle 2030

Lifecycle 2025

Lifecycle 2020

Lifecycle 2015

Lifecycle 2010

Lifecycle Retirement

8/31/08

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

0.49% – 1.13%

Annual report | Lifecycle Portfolios 27

Portfolio’s investments

FINANCIAL STATEMENTS

Investment companies
Underlying Funds’ Investment Manager
BlackRock Investment Management, LLC (formerly Mercury Advisors)	(BlackRock)
Columbia Management Advisors, LLC	(Columbia)
Davis Advisors	(Davis)
Declaration Management/ John Hancock Advisers	(Declaration)
Deutsche Asset Management	(Deutsche)
Dimensional Fund Advisors, Inc.	(DFA)
Franklin®Templeton®	(Templeton)
Grantham, Mayo, Van Otterloo & Co.	(GMO)
Jennison Associates LLC	(Jennison)
Legg Mason Funds Management, Inc.	(Legg Mason)
Marsico Capital Management, LLC	(Marsico)
MFC Global Investment Management (U.S.A.) Limited	(MFC Global U.S.A.)
MFC Global Investment Management (U.S.), LLC	(MFC Global U.S.)
Pacific Investment Management Company	(PIMCO)
RCM Capital Management, Inc.	(RCM)
RiverSource Investments, LLC	(RiverSource)
SSgA Funds Management, Inc.	(SSgA)
T. Rowe Price Associates, Inc.	(T. Rowe Price)
Van Kampen	(Van Kampen)
Wellington Management Company, LLP	(Wellington)
Wells Capital Management, Inc.	(Wells Capital)
Western Asset Management Company	(WAMCO)

Lifecycle 2045 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.05%
John Hancock Funds 1.00%
Small Cap Intrinsic Value (MFC Global U.S.) (c)(f)		87,950	$	1,017,582
John Hancock Funds II 96.04%
Blue Chip Growth (T. Rowe Price) (f)		271,147		5,168,064
Capital Appreciation (Jennison) (f)		406,934		4,134,451
Core Equity (Legg Mason) (f)		205,376		2,203,689
Emerging Markets Value (DFA) (f)		214,025		2,026,819
Emerging Small Company (RCM) (f)		134,049		3,546,933
Fundamental Value (Davis) (f)		202,009		3,100,839
Global Bond (PIMCO) (f)		67,471		1,013,410
High Yield (WAMCO) (f)		115,422		1,013,410
Index 500 (MFC Global U.S.A.) (c)(f)		2,353,344		22,286,170
International Equity Index (SSgA) (f)		656,282		12,160,914
International Opportunities (Marsico) (f)		200,015		3,040,228
International Small Cap (Templeton) (f)		161,424		2,537,593
International Small Company (DFA) (f)		299,761		2,544,970
International Value (Templeton) (f)		194,709		3,045,252
Large Cap Value (BlackRock) (f)		140,755		3,100,839
Mid Cap Index (MFC Global U.S.A.) (c)(f)		275,833		5,067,047
Mid Cap Stock (Wellington) (f)		239,435		4,053,638
Mid Cap Value Equity (RiverSource) (f)		102,780		1,013,409
Natural Resources (Wellington) (f)		85,080		2,978,635
Real Return Bond (PIMCO) (f)		72,129		1,013,409
Small Cap Index (MFC Global U.S.A.) (c)(f)		196,119		2,541,702
Small Company Value (T. Rowe Price) (f)		101,789		2,533,524
Strategic Bond (WAMCO) (f)		96,977		1,013,409
Total Bond Market (Declaration) (c)(f)		102,294		1,030,096
Value & Restructuring (Columbia) (f)		258,988		3,105,271
Value (Van Kampen) (f)		216,918		2,067,226
				97,340,947
John Hancock Funds III 3.01%
International Core (GMO) (f)		84,067		3,045,734
Total investment companies (Cost $110,892,005)			$	101,404,263
Total investments (Cost $110,892,005)† 100.05%			$	101,404,263
Liabilities in excess of other assets (0.05)%				(48,790	)
Total net assets 100.00%			$	101,355,473

Percentages are stated as a percent of net assets.

28 Lifecycle Portfolios | Annual report See notes to financial statements

Lifecycle 2040 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.05%
John Hancock Funds 1.01%
Small Cap Intrinsic Value (MFC Global U.S.) (c)(f)		101,143	$	1,170,228
John Hancock Funds II 96.04%
Blue Chip Growth (T. Rowe Price) (f)		311,759		5,942,129
Capital Appreciation (Jennison) (f)		467,884		4,753,703
Core Equity (Legg Mason) (f)		235,539		2,527,338
Emerging Markets Value (DFA) (f)		246,040		2,330,001
Emerging Small Company (RCM) (f)		154,101		4,077,502
Fundamental Value (Davis) (f)		233,623		3,586,119
Global Bond (PIMCO) (f)		77,753		1,167,851
High Yield (WAMCO) (f)		133,076		1,168,404
Index 500 (MFC Global U.S.A.) (c)(f)		2,705,777		25,623,708
International Equity Index (SSgA) (f)		754,453		13,980,007
International Opportunities (Marsico) (f)		229,934		3,495,002
International Small Cap (Templeton) (f)		185,587		2,917,432
International Small Company (DFA) (f)		344,631		2,925,913
International Value (Templeton) (f)		223,854		3,501,080
Large Cap Value (BlackRock) (f)		161,837		3,565,277
Mid Cap Index (MFC Global U.S.A.) (c)(f)		317,865		5,839,184
Mid Cap Stock (Wellington) (f)		275,251		4,660,002
Mid Cap Value Equity (RiverSource) (f)		118,154		1,165,000
Natural Resources (Wellington) (f)		97,884		3,426,931
Real Return Bond (PIMCO) (f)		82,918		1,165,001
Small Cap Index (MFC Global U.S.A.) (c)(f)		226,256		2,932,273
Small Company Value (T. Rowe Price) (f)		117,404		2,922,180
Strategic Bond (WAMCO) (f)		111,682		1,167,074
Total Bond Market (Declaration) (c)(f)		117,553		1,183,758
Value & Restructuring (Columbia) (f)		298,408		3,577,913
Value (Van Kampen) (f)		249,407		2,376,852
				111,977,634
John Hancock Funds III 3.00%
International Core (GMO) (f)		96,650		3,501,635
Total investment companies (Cost $127,351,837)			$	116,649,497
Total investments (Cost $127,351,837)† 100.05%			$	116,649,497
Liabilities in excess of other assets (0.05)%				(57,013	)
Total net assets 100.00%			$	116,592,484

Percentages are stated as a percent of net assets.

Lifecycle 2035 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.04%
John Hancock Funds 1.00%
Small Cap Intrinsic Value (MFC Global U.S.) (c)(f)	144,610	$	1,673,139
John Hancock Funds II 96.02%
Blue Chip Growth (T. Rowe Price) (f)	443,475		8,452,629
Capital Appreciation (Jennison) (f)	665,561		6,762,103
Core Equity (Legg Mason) (f)	349,519		3,750,337
Emerging Markets Value (DFA) (f)	351,962		3,333,076
Emerging Small Company (RCM) (f)	220,257		5,827,990
Fundamental Value (Davis) (f)	331,915		5,094,896
Global Bond (PIMCO) (f)	111,732		1,678,214
High Yield (WAMCO) (f)	191,231		1,679,009
Index 500 (MFC Global U.S.A.) (c)(f)	3,856,038		36,516,675
International Equity Index (SSgA) (f)	1,080,836		20,027,885
International Opportunities (Marsico) (f)	330,354		5,021,379
International Small Cap (Templeton) (f)	266,037		4,182,100
International Small Company (DFA) (f)	495,011		4,202,642
International Value (Templeton) (f)	320,279		5,009,161
Large Cap Value (BlackRock) (f)	230,212		5,071,577
Mid Cap Index (MFC Global U.S.A.) (c)(f)	452,556		8,313,461
Mid Cap Stock (Wellington) (f)	393,454		6,661,172
Mid Cap Value Equity (RiverSource) (f)	168,511		1,661,515
Natural Resources (Wellington) (f)	137,913		4,828,351
Real Return Bond (PIMCO) (f)	119,112		1,673,523
Small Cap Index (MFC Global U.S.A.) (c)(f)	322,465		4,179,141
Small Company Value (T. Rowe Price) (f)	167,216		4,162,018
Strategic Bond (WAMCO) (f)	160,488		1,677,097
Total Bond Market (Declaration) (c)(f)	167,477		1,686,494
Value & Restructuring (Columbia) (f)	424,662		5,091,695
Value (Van Kampen) (f)	354,780		3,381,051
			159,925,191
John Hancock Funds III 3.02%
International Core (GMO) (f)	138,718		5,025,741
Total investment companies (Cost $182,911,667)		$	166,624,071
Total investments (Cost $182,911,667)† 100.04%		$	166,624,071
Liabilities in excess of other assets (0.04)%			(61,187	)
Total net assets 100.00%		$	166,562,884

Percentages are stated as a percent of net assets.

See notes to financial statements Annual report | Lifecycle Portfolios 29

FINANCIAL STATEMENTS

Lifecycle 2030 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds 1.01%
Small Cap Intrinsic Value (MFC Global U.S.) (c)(f)	198,793	$	2,300,030
John Hancock Funds II 96.00%
Blue Chip Growth (T. Rowe Price) (f)	603,253		11,498,009
Capital Appreciation (Jennison) (f)	907,106		9,216,193
Core Equity (Legg Mason) (f)	460,879		4,945,232
Emerging Markets Value (DFA) (f)	480,599		4,551,274
Emerging Small Company (RCM) (f)	301,965		7,989,991
Fundamental Value (Davis) (f)	453,726		6,964,699
Global Bond (PIMCO) (f)	152,569		2,291,580
High Yield (WAMCO) (f)	522,247		4,585,332
Index 500 (MFC Global U.S.A.) (c)(f)	5,268,471		49,892,421
International Equity Index (SSgA) (f)	1,356,653		25,138,783
International Opportunities (Marsico) (f)	451,094		6,856,632
International Small Cap (Templeton) (f)	290,616		4,568,485
International Small Company (DFA) (f)	811,117		6,886,387
International Value (Templeton) (f)	438,559		6,859,058
Large Cap Value (BlackRock) (f)	314,847		6,936,080
Mid Cap Index (MFC Global U.S.A.) (c)(f)	622,121		11,428,357
Mid Cap Stock (Wellington) (f)	538,848		9,122,701
Mid Cap Value Equity (RiverSource) (f)	231,073		2,278,384
Natural Resources (Wellington) (f)	190,205		6,659,091
Real Return Bond (PIMCO) (f)	162,646		2,285,175
Small Cap Index (MFC Global U.S.A.) (c)(f)	443,286		5,744,981
Small Company Value (T. Rowe Price) (f)	229,798		5,719,674
Strategic Bond (WAMCO) (f)	219,144		2,290,055
Total Bond Market (Declaration) (c)(f)	229,484		2,310,908
Value & Restructuring (Columbia) (f)	580,876		6,964,699
Value (Van Kampen) (f)	487,212		4,643,132
			218,627,313
John Hancock Funds III 3.01%
International Core (GMO) (f)	189,417		6,862,588
Total investment companies (Cost $249,794,115)		$	227,789,931
Total investments (Cost $249,794,115)† 100.02%		$	227,789,931
Liabilities in excess of other assets (0.02)%			(46,392	)
Total net assets 100.00%		$	227,743,539

Percentages are stated as a percent of net assets.

Lifecycle 2025 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds 1.01%
Small Cap Intrinsic Value (MFC Global U.S.) (c)(f)	251,582	$	2,910,803
John Hancock Funds II 96.00%
Blue Chip Growth (T. Rowe Price) (f)	610,611		11,638,255
Capital Appreciation (Jennison) (f)	1,139,689		11,579,241
Core Equity (Legg Mason) (f)	590,324		6,334,178
Emerging Markets Value (DFA) (f)	607,341		5,751,517
Emerging Small Company (RCM) (f)	327,559		8,667,199
Fundamental Value (Davis) (f)	576,727		8,852,759
Global Bond (PIMCO) (f)	192,101		2,885,364
Global Real Estate (Deutsche) (f)	360,846		2,940,891
High Income (MFC Global U.S.) (c)(f)	363,692		2,898,624
High Yield (WAMCO) (f)	659,073		5,786,657
Index 500 (MFC Global U.S.A.) (c)(f)	6,976,058		66,063,273
International Equity Index (SSgA) (f)	1,718,194		31,838,141
International Opportunities (Marsico) (f)	380,401		5,782,101
International Small Cap (Templeton) (f)	368,256		5,788,980
International Small Company (DFA) (f)	1,028,576		8,732,614
International Value (Templeton) (f)	370,674		5,797,341
Large Cap Value (BlackRock) (f)	398,473		8,778,361
Mid Cap Index (MFC Global U.S.A.) (c)(f)	787,325		14,463,156
Mid Cap Stock (Wellington) (f)	511,454		8,658,924
Mid Cap Value Equity (RiverSource) (f)	292,817		2,887,178
Natural Resources (Wellington) (f)	161,197		5,643,499
Real Estate Equity (T. Rowe Price) (f)	346,352		2,950,920
Real Return Bond (PIMCO) (f)	412,510		5,795,761
Small Cap Index (MFC Global U.S.A.) (c)(f)	337,281		4,371,165
Small Company Value (T. Rowe Price) (f)	232,657		5,790,826
Strategic Bond (WAMCO) (f)	277,521		2,900,094
Strategic Income (MFC Global U.S.) (c)(f)	288,633		2,892,101
Total Bond Market (Declaration) (c)(f)	586,081		5,901,839
Total Return (PIMCO) (f)	206,402		2,906,147
U.S. High Yield Bond (Wells Capital) (f)	239,290		2,893,014
Value & Restructuring (Columbia) (f)	492,230		5,901,839
Value (Van Kampen) (f)	308,808		2,942,937
			277,014,896
John Hancock Funds III 3.01%
International Core (GMO) (f)	240,220		8,703,176
Total investment companies (Cost $316,196,726)		$	288,628,875
Total investments (Cost $316,196,726)† 100.02%		$	288,628,875
Liabilities in excess of other assets (0.02)%			(65,641	)
Total net assets 100.00%		$	288,563,234

Percentages are stated as a percent of net assets.

30 Lifecycle Portfolios | Annual report See notes to financial statements

Lifecycle 2020 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds 1.01%
Small Cap Intrinsic Value (MFC Global U.S.) (c)(f)		249,824	$	2,890,465
John Hancock Funds II 97.01%
Blue Chip Growth (T. Rowe Price) (f)		604,775		11,527,004
Capital Appreciation (Jennison) (f)		1,134,548		11,527,004
Core Equity (Legg Mason) (f)		391,804		4,204,056
Emerging Markets Value (DFA) (f)		603,684		5,716,886
Emerging Small Company (RCM) (f)		216,847		5,737,760
Floating Rate Income (WAMCO) (f)		293,994		2,878,201
Fundamental Value (Davis) (f)		571,376		8,770,621
Global Bond (PIMCO) (f)		383,285		5,756,940
Global Real Estate (Deutsche) (f)		357,137		2,910,669
High Income (MFC Global U.S.) (c)(f)		722,624		5,759,310
High Yield (WAMCO) (f)		983,998		8,639,500
Index 500 (MFC Global U.S.A.) (c)(f)		7,182,525		68,018,516
International Equity Index (SSgA) (f)		1,549,924		28,720,083
International Opportunities (Marsico) (f)		377,748		5,741,775
International Small Cap (Templeton) (f)		274,115		4,309,082
International Small Company (DFA) (f)		509,425		4,325,019
International Value (Templeton) (f)		367,427		5,746,552
Large Cap Value (BlackRock) (f)		392,913		8,655,883
Mid Cap Index (MFC Global U.S.A.) (c)(f)		626,251		11,504,230
Mid Cap Stock (Wellington) (f)		338,587		5,732,282
Natural Resources (Wellington) (f)		160,243		5,610,093
Real Estate Equity (T. Rowe Price) (f)		346,633		2,953,315
Real Return Bond (PIMCO) (f)		612,902		8,611,273
Small Cap Index (MFC Global U.S.A.) (c)(f)		334,323		4,332,824
Small Company Value (T. Rowe Price) (f)		115,653		2,878,607
Spectrum Income (T. Rowe Price) (f)		284,244		2,870,869
Strategic Bond (WAMCO) (f)		275,268		2,876,553
Strategic Income (MFC Global U.S.) (c)(f)		574,736		5,758,854
Total Bond Market (Declaration) (c)(f)		572,178		5,761,834
Total Return (PIMCO) (f)		408,601		5,753,107
U.S. High Yield Bond (Wells Capital) (f)		476,251		5,757,869
Value & Restructuring (Columbia) (f)		486,547		5,833,700
Value (Van Kampen) (f)		304,438		2,901,297
				278,081,568
John Hancock Funds III 2.00%
International Core (GMO) (f)		158,647		5,747,796
Total investment companies (Cost $311,938,552)			$	286,719,829
Total investments (Cost $311,938,552)† 100.02%			$	286,719,829
Liabilities in excess of other assets (0.02)%				(70,429	)
Total net assets 100.00%			$	286,649,400

Percentages are stated as a percent of net assets.

Lifecycle 2015 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds II 98.02%
Blue Chip Growth (T. Rowe Price) (f)		415,910	$	7,927,248
Capital Appreciation (Jennison) (f)		780,241		7,927,248
Core Equity (Legg Mason) (f)		314,917		3,379,063
Emerging Markets Value (DFA) (f)		472,044		4,470,260
Emerging Small Company (RCM) (f)		84,801		2,243,827
Floating Rate Income (WAMCO) (f)		456,615		4,470,260
Fundamental Value (Davis) (f)		445,016		6,830,994
Global Bond (PIMCO) (f)		446,431		6,705,390
Global Real Estate (Deutsche) (f)		556,225		4,533,232
High Income (MFC Global U.S.) (c)(f)		562,127		4,480,155
High Yield (WAMCO) (f)		1,781,994		15,645,911
Index 500 (MFC Global U.S.A.) (c)(f)		5,275,620		49,960,122
International Equity Index (SSgA) (f)		727,342		13,477,640
International Opportunities (Marsico) (f)		294,851		4,481,731
International Small Cap (Templeton) (f)		142,299		2,236,943
International Small Company (DFA) (f)		529,642		4,496,658
International Value (Templeton) (f)		143,687		2,247,265
Large Cap Value (BlackRock) (f)		205,622		4,529,856
Mid Cap Index (MFC Global U.S.A.) (c)(f)		366,891		6,739,786
Mid Cap Stock (Wellington) (f)		132,409		2,241,685
Natural Resources (Wellington) (f)		124,247		4,349,871
Real Estate Equity (T. Rowe Price) (f)		539,865		4,599,652
Real Return Bond (PIMCO) (f)		477,252		6,705,390
Small Cap Index (MFC Global U.S.A.) (c)(f)		174,283		2,258,706
Small Company Value (T. Rowe Price) (f)		90,348		2,248,756
Spectrum Income (T. Rowe Price) (f)		221,519		2,237,345
Strategic Bond (WAMCO) (f)		641,664		6,705,390
Strategic Income (MFC Global U.S.) (c)(f)		446,134		4,470,260
Total Bond Market (Declaration) (c)(f)		1,115,545		11,233,534
Total Return (PIMCO) (f)		317,490		4,470,260
U.S. High Yield Bond (Wells Capital) (f)		369,749		4,470,260
Value & Restructuring (Columbia) (f)		378,947		4,543,574
Value (Van Kampen) (f)		237,921		2,267,383
				219,585,655
John Hancock Funds III 2.00%
International Core (GMO) (f)		124,082		4,495,503
Total investment companies (Cost $242,705,208)			$	224,081,158
Total investments (Cost $242,705,208)† 100.02%			$	224,081,158
Liabilities in excess of other assets (0.02%)				(54,181	)
Total net assets 100.00%			$	224,026,977

Percentages are stated as a percent of net assets.

See notes to financial statements Annual report | Lifecycle Portfolios 31

FINANCIAL STATEMENTS

Lifecycle 2010 Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 100.05%
John Hancock Funds II 99.04%
Blue Chip Growth (T. Rowe Price) (f)		203,129	$	3,871,646
Capital Appreciation (Jennison) (f)		381,068		3,871,646
Core Equity (Legg Mason) (f)		88,690		951,643
Emerging Markets Value (DFA) (f)		272,452		2,580,118
Floating Rate Income (WAMCO) (f)		261,813		2,563,146
Fundamental Value (Davis) (f)		169,281		2,598,470
Global Bond (PIMCO) (f)		255,675		3,840,245
Global Real Estate (Deutsche) (f)		480,561		3,916,570
High Income (MFC Global U.S.) (c)(f)		487,542		3,885,711
High Yield (WAMCO) (f)		1,023,318		8,984,729
Index 500 (MFC Global U.S.A.) (c)(f)		2,733,189		25,883,304
International Equity Index (SSgA) (f)		420,111		7,784,650
International Opportunities (Marsico) (f)		85,153		1,294,318
International Small Cap (Templeton) (f)		82,196		1,292,116
International Small Company (DFA) (f)		153,160		1,300,329
International Value (Templeton) (f)		82,993		1,298,014
Large Cap Value (BlackRock) (f)		117,588		2,590,471
Mid Cap Index (MFC Global U.S.A.) (c)(f)		141,220		2,594,206
Natural Resources (Wellington) (f)		71,614		2,507,206
Real Estate Equity (T. Rowe Price) (f)		305,100		2,599,454
Real Return Bond (PIMCO) (f)		364,436		5,120,327
Small Cap Index (MFC Global U.S.A.) (c)(f)		200,295		2,595,821
Spectrum Income (T. Rowe Price) (f)		254,089		2,566,300
Strategic Bond (WAMCO) (f)		490,655		5,127,342
Strategic Income (MFC Global U.S.) (c)(f)		384,183		3,849,511
Total Bond Market (Declaration) (c)(f)		1,278,627		12,875,775
Total Return (PIMCO) (f)		182,034		2,563,038
U.S. High Yield Bond (Wells Capital) (f)		318,296		3,848,193
Value & Restructuring (Columbia) (f)		217,567		2,608,632
				127,362,931
John Hancock Funds III 1.01%
International Core (GMO) (f)		35,835		1,298,295
Total investment companies (Cost $137,739,425)			$	128,661,226
Total investments (Cost $137,739,425)† 100.05%			$	128,661,226
Liabilities in excess of other assets (0.05)%				(64,540	)
Total net assets 100.00%			$	128,596,686

Percentages are stated as a percent of net assets.

Lifecycle Retirement Portfolio

Securities owned by the Portfolio on 8-31-08

Issuer	Shares		Value
Investment companies 94.43%
Investment Companies 6.37%
Financial Select Sector SPDR Fund		115,000	$	2,463,300
iShares MSCI EAFE Index Fund		15,100		959,907
PowerShares DB Commodity Index Tracking Fund *		96,002		3,625,036
SPDR Lehman High Yield Bond ETF		75,000		3,200,250
SPDR Trust Series 1		35,000		4,507,650
				14,756,143
John Hancock Funds II 87.05%
Core Equity (Legg Mason) (f)		510,843		5,481,350
Emerging Markets Value (DFA) (f)		735,785		6,967,887
Floating Rate Income (WAMCO) (f)		471,249		4,613,524
Fundamental Value (Davis) (f)		463,511		7,114,899
Global Bond (PIMCO) (f)		306,723		4,606,986
Global Real Estate (Deutsche) (f)		1,158,453		9,441,393
High Income (MFC Global U.S.) (c)(f)		1,170,064		9,325,413
High Yield (WAMCO) (f)		1,578,785		13,861,736
Index 500 (MFC Global U.S.A.) (c)(f)		3,506,110		33,202,863
International Equity Index (SSgA) (f)		252,123		4,671,843
International Small Cap (Templeton) (f)		147,978		2,326,219
International Small Company (DFA) (f)		274,893		2,333,839
International Value (Templeton) (f)		149,422		2,336,953
Investment Quality Bond (Wellington) (f)		792,787		9,204,251
Mid Cap Index (MFC Global U.S.A.) (c)(f)		381,533		7,008,769
Natural Resources (Wellington) (f)		133,345		4,668,398
Real Estate Equity (T. Rowe Price) (f)		1,113,443		9,486,532
Real Return Bond (PIMCO) (f)		1,146,594		16,109,652
Small Cap Index (MFC Global U.S.A.) (c)(f)		362,477		4,697,699
Spectrum Income (T. Rowe Price) (f)		686,020		6,928,801
Strategic Bond (WAMCO) (f)		441,576		4,614,469
Strategic Income (MFC Global U.S.) (c)(f)		461,005		4,619,274
Total Bond Market (Declaration) (c)(f)		942,059		9,486,532
Total Return (PIMCO) (f)		491,477		6,919,995
U.S. High Yield Bond (Wells Capital) (f)		954,858		11,544,231
				201,573,508
John Hancock Funds III 1.01%
International Core (GMO) (f)		64,517		2,337,458
Total investment companies (Cost $228,479,873)			$	218,667,109
	Principal Amount		Value
Short-term investments 5.43%
Federal Home Loan Bank Discount Notes zero coupon due 09/02/2008	$	12,578,000	$	12,577,319
Total short-term investments (Cost $12,577,319)			$	12,577,319
Total investments (Cost $241,057,192)† 99.86%			$	231,244,428
Other assets in excess of liabilities 0.14%				320,038
Total net assets 100.00%			$	231,564,466

Percentages are stated as a percent of net assets.

32 Lifecycle Portfolios | Annual report See notes to financial statements

*	Non-Income Producing.
(c)	Investment is an affiliate of the Trust’s advisor or subadvisor.
(f)	The underlying fund’s subadviser.
†	At August 31, 2008, the aggregate cost of investment securities for federal income tax purposes was as follows:

Portfolio	Aggregate Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized (Depreciation)
LIFECYCLE 2045	$	111,566,482	$	69,726	($	10,231,945	)	($	10,162,219	)
LIFECYCLE 2040		128,203,936		96,332		(11,650,771	)		(11,554,439	)
LIFECYCLE 2035		183,935,870		126,975		(17,438,774	)		(17,311,799	)
LIFECYCLE 2030		250,485,652		184,808		(22,880,529	)		(22,695,721	)
LIFECYCLE 2025		316,862,299		294,538		(28,527,962	)		(28,233,424	)
LIFECYCLE 2020		312,687,789		357,378		(26,325,338	)		(25,967,960	)
LIFECYCLE 2015		243,578,349		323,317		(19,820,508	)		(19,497,191	)
LIFECYCLE 2010		138,584,373		193,811		(10,116,958	)		(9,923,147	)
LIFECYCLE RETIREMENT		247,942,144		2,765,131		(19,462,847	)		(16,697,716	)

See notes to financial statements Annual report | Lifecycle Portfolios 33

Financial statements

FINANCIAL STATEMENTS

Statements of assets and liabilities 8-31-08

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 2045 Portfolio			Lifecycle 2040 Portfolio			Lifecycle 2035 Portfolio
Assets
Investments in affiliated funds, at value (Note 9)	$	101,404,263		$	116,649,497		$	166,624,071
Total investments, at value		101,404,263			116,649,497			166,624,071
Cash		1			—			—
Receivable for fund shares sold		506,165			387,743			263,996
Total assets		101,910,429			117,037,240			166,888,067
Liabilities
Payable for investments purchased		465,180			356,386			228,807
Payable for fund shares repurchased		868			15			13
Payable to affiliates:
Fund administration fees		207			271			459
Transfer agent fees		1,246			830			1,149
Other payables and accrued expenses		87,455			87,254			94,755
Total liabilities		554,956			444,756			325,183
Net assets
Capital paid-in	$	110,454,354		$	126,827,060		$	181,742,558
Undistributed net investment income (loss)		51,234			60,308			37,462
Accumulated undistributed net realized gain (loss) on investments		337,627			407,456			1,070,460
Net unrealized appreciation (depreciation) on investments		(9,487,742	)		(10,702,340	)		(16,287,596	)
Net assets	$	101,355,473		$	116,592,484		$	166,562,884
Investments in affiliated funds, at cost	$	110,892,005		$	127,351,837		$	182,911,667
Net asset value per share
The Portfolios have an unlimited number of shares authorized with no par value.
Class A: Net assets	$	1,874,393		$	1,257,229		$	2,132,220
Shares outstanding		196,167			131,475			221,781
Net asset value and redemption price per share	$	9.56		$	9.56		$	9.61
Class B:1 Net assets	$	275,594		$	242,610		$	554,569
Shares outstanding		29,117			25,606			58,197
Net asset value, offering price and redemption price per share	$	9.46	2	$	9.47		$	9.53
Class C:1 Net assets	$	189,144		$	235,227		$	327,869
Shares outstanding		19,987			24,833			34,412
Net asset value, offering price and redemption price per share	$	9.46		$	9.47		$	9.53
Class R: Net assets	$	173,621		$	141,889		$	79,148
Shares outstanding		18,295			14,937			8,288
Net asset value, offering price and redemption price per share	$	9.49		$	9.50		$	9.55
Class R1: Net assets	$	180,661		$	200,004		$	177,167
Shares outstanding		18,978			20,990			18,485
Net asset value, offering price and redemption price per share	$	9.52		$	9.53		$	9.58
Class R2: Net assets	$	408,955		$	714,986		$	1,382,012
Shares outstanding		42,798			74,774			143,768
Net asset value, offering price and redemption price per share	$	9.56		$	9.56		$	9.61
Class R3: Net assets	$	283,358		$	1,180,523		$	278,310
Shares outstanding		29,734			123,862			29,006
Net asset value, offering price and redemption price per share	$	9.53		$	9.53		$	9.59
Class R4: Net assets	$	141,515		$	173,117		$	219,360
Shares outstanding		14,793			18,080			22,776
Net asset value, offering price and redemption price per share	$	9.57		$	9.58		$	9.63
Class R5: Net assets	$	161,062		$	633,194		$	149,224
Shares outstanding		16,767			65,828			15,435
Net asset value, offering price and redemption price per share	$	9.61		$	9.62		$	9.67
Class 1: Net assets	$	97,667,170		$	111,813,705		$	161,263,005
Shares outstanding		10,163,978			11,625,791			16,666,569
Net asset value, offering price and redemption price per share	$	9.61		$	9.62		$	9.68
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)3	$	10.06		$	10.06		$	10.12

1	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
2	Net assets and shares outstanding have been rounded for presentation purposes. The net asset value is as reported on August 31, 2008.
3	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

34 Lifecycle Portfolios | Annual report See notes to financial statements

Statements of assets and liabilities 8-31-08

Continued

	Lifecycle 2030 Portfolio			Lifecycle 2025 Portfolio			Lifecycle 2020 Portfolio
Assets
Investments in affiliated funds, at value (Note 9)	$	227,789,931		$	288,628,875		$	286,719,829
Total investments, at value		227,789,931			288,628,875			286,719,829
Cash		—			1			—
Receivable for investments sold		39,811			58,414			—
Receivable for fund shares sold		34,581			52,440			108,133
Dividends and interest receivable		—			—			15,760
Total assets		227,864,323			288,739,730			286,843,722
Liabilities
Payable for investments purchased		—			—			90,007
Payable for fund shares repurchased		21,757			75,396			23
Payable to affiliates:
Fund administration fees		496			2,022			2,004
Transfer agent fees		1,909			1,999			3,650
Other payables and accrued expenses		96,622			97,079			98,638
Total liabilities		120,784			176,496			194,322
Net assets
Capital paid-in	$	247,738,927		$	313,179,591		$	308,971,073
Undistributed net investment income (loss)		83,058			501,450			1,041,701
Accumulated undistributed net realized gain (loss) on investments		1,925,738			2,450,044			1,855,349
Net unrealized appreciation (depreciation) on investments		(22,004,184	)		(27,567,851	)		(25,218,723	)
Net assets	$	227,743,539		$	288,563,234		$	286,649,400
Investments in affiliated funds, at cost	$	249,794,115		$	316,196,726		$	311,938,552
Net asset value per share
The Portfolios have an unlimited number of shares authorized with no par value.
Class A: Net assets	$	3,344,574		$	3,603,833		$	4,285,125
Shares outstanding		349,629			376,432			444,165
Net asset value and redemption price per share	$	9.57		$	9.57		$	9.65
Class B:1 Net assets	$	523,208		$	665,685		$	1,277,736
Shares outstanding		55,023			69,990			133,111
Net asset value, offering price and redemption price per share	$	9.51		$	9.51		$	9.60
Class C:1 Net assets	$	489,643		$	685,099		$	1,131,920
Shares outstanding		51,501			72,037			117,920
Net asset value, offering price and redemption price per share	$	9.51		$	9.51		$	9.60
Class R: Net assets	$	228,988		$	140,326		$	211,480
Shares outstanding		24,093			14,756			22,046
Net asset value, offering price and redemption price per share	$	9.50		$	9.51		$	9.59
Class R1: Net assets	$	319,913		$	285,122		$	250,238
Shares outstanding		33,614			29,951			26,044
Net asset value, offering price and redemption price per share	$	9.52		$	9.52		$	9.61
Class R2: Net assets	$	1,334,193		$	1,702,783		$	1,519,551
Shares outstanding		139,910			178,605			157,829
Net asset value, offering price and redemption price per share	$	9.54		$	9.53		$	9.63
Class R3: Net assets	$	675,616		$	456,184		$	825,474
Shares outstanding		70,915			47,847			85,829
Net asset value, offering price and redemption price per share	$	9.53		$	9.53		$	9.62
Class R4: Net assets	$	114,589		$	206,916		$	138,310
Shares outstanding		12,002			21,661			14,350
Net asset value, offering price and redemption price per share	$	9.55		$	9.55		$	9.64
Class R5: Net assets	$	1,001,723		$	285,202		$	757,887
Shares outstanding		104,710			29,804			78,460
Net asset value, offering price and redemption price per share	$	9.57		$	9.57		$	9.66
Class 1: Net assets	$	219,711,092		$	280,532,084		$	276,251,679
Shares outstanding		22,951,807			29,292,780			28,578,464
Net asset value, offering price and redemption price per share	$	9.57		$	9.58		$	9.67
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)2	$	10.07		$	10.07		$	10.16

1	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
2	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

See notes to financial statements Annual report | Lifecycle Portfolios 35

FINANCIAL STATEMENTS

Statements of assets and liabilities 8-31-08

Continued

	Lifecycle 2015 Portfolio			Lifecycle 2010 Portfolio			Lifecycle Retirement Portfolio
Assets
Investments in unaffiliated issuers, at value		—			—		$	27,333,462
Investments in affiliated funds, at value (Note 9)	$	224,081,158		$	128,661,226			203,910,966
Total investments, at value		224,081,158			128,661,226			231,244,428
Cash		—			4			2,890
Cash collateral at broker for futures contracts		—			—			500,000
Receivable for investments sold		—			—			511,318
Receivable for fund shares sold		548,904			107,653			113,201
Dividends and interest receivable		24,593			14,186			25,830
Total assets		224,654,655			128,783,069			232,397,667
Liabilities
Payable for investments purchased		528,672			64,852			25,830
Payable for fund shares repurchased		—			28,810			613,671
Payable for futures variation margin		—			—			84,706
Payable to affiliates:
Fund administration fees		747			417			1,576
Transfer agent fees		2,007			2,039			8,914
Other payables and accrued expenses		96,252			90,265			98,504
Total liabilities		627,678			186,383			833,201
Net assets
Capital paid-in	$	240,027,900		$	136,408,841		$	247,344,603
Undistributed net investment income (loss)		1,526,791			1,155,750			—
Accumulated undistributed net realized gain (loss) on investments, futures contracts and options written		1,096,336			110,294			(5,368,850	)
Net unrealized appreciation (depreciation) on investments and futures		(18,624,050	)		(9,078,199	)		(10,411,287	)
Net assets	$	224,026,977		$	128,596,686		$	231,564,466
Investments in unaffiliated issuers, at cost		—			—		$	26,689,960
Investments in affiliated funds, at cost	$	242,705,208		$	137,739,425		$	214,367,232
Net asset value per share
The Portfolios have an unlimited number of shares authorized with no par value.
Class A: Net assets	$	2,776,071		$	2,050,388		$	10,639,599
Shares outstanding		287,491			211,524			1,121,280
Net asset value and redemption price per share	$	9.66		$	9.69		$	9.49
Class B:1 Net assets	$	902,461		$	223,569		$	431,113
Shares outstanding		93,900			23,166			45,525
Net asset value, offering price and redemption price per share	$	9.61		$	9.65		$	9.47
Class C:1 Net assets	$	762,007		$	985,159		$	6,374,480
Shares outstanding		79,293			101,982			672,798
Net asset value, offering price and redemption price per share	$	9.61		$	9.66		$	9.47
Class R: Net assets	$	169,351		$	101,510		$	100,616
Shares outstanding		17,627			10,524			10,625
Net asset value, offering price and redemption price per share	$	9.61		$	9.65		$	9.47
Class R1: Net assets	$	207,009		$	126,340		$	102,043
Shares outstanding		21,512			13,081			10,774
Net asset value, offering price and redemption price per share	$	9.62		$	9.66		$	9.47
Class R2: Net assets	$	1,201,793		$	2,273,583		$	156,683
Shares outstanding		124,726			234,869			16,538
Net asset value, offering price and redemption price per share	$	9.64		$	9.68		$	9.47
Class R3: Net assets	$	693,318		$	795,181		$	184,219
Shares outstanding		71,988			82,237			19,441
Net asset value, offering price and redemption price per share	$	9.63		$	9.67		$	9.48
Class R4: Net assets	$	171,894		$	205,020		$	102,521
Shares outstanding		17,809			21,157			10,815
Net asset value, offering price and redemption price per share	$	9.65		$	9.69		$	9.48
Class R5: Net assets	$	463,705		$	498,458		$	111,473
Shares outstanding		47,942			51,334			11,751
Net asset value, offering price and redemption price per share	$	9.67		$	9.71		$	9.49
Class 1: Net assets	$	216,679,368		$	121,337,478		$	213,361,719
Shares outstanding		22,379,227			12,484,821			22,493,193
Net asset value, offering price and redemption price per share	$	9.68		$	9.72		$	9.49
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)2	$	10.17		$	10.20		$	9.99

1	Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
2	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

36 Lifecycle Portfolios | Annual report See notes to financial statements

Statements of operations For the year ended 8-31-08

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 2045 Portfolio			Lifecycle 2040 Portfolio			Lifecycle 2035 Portfolio
Investment income
Income distributions received from affiliated underlying funds	$	488,709		$	574,746		$	891,222
Total investment income		488,709			574,746			891,222
Expenses
Investment management fees (Note 4)		36,407			42,149			62,182
Distribution and service fees (Note 4)		41,175			45,639			65,745
Transfer agent fees (Note 4)		5,078			4,179			5,295
Blue sky fees (Note 4)		137,597			137,978			137,938
Fund administration fees (Note 4)		7,727			8,940			13,323
Audit and legal fees		43,982			44,092			44,495
Printing and postage fees (Note 4)		1,886			1,927			2,169
Custodian fees		10,799			10,799			10,799
Trustees’ fees (Note 5)		505			590			882
Registration and filing fees		13,132			13,915			16,410
Miscellaneous		41			41			67
Total expenses		298,329			310,249			359,305
Less expense reductions (Note 4)		(160,496	)		(153,954	)		(139,143	)
Net expenses		137,833			156,295			220,162
Net investment income (loss)		350,876			418,451			671,060
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in affiliated underlying funds		(839,403	)		(994,970	)		(1,020,397	)
Capital gain distributions received from affiliated underlying funds		1,787,697			2,112,522			3,076,276
		948,294			1,117,552			2,055,879
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds		(9,467,968	)		(10,832,138	)		(16,625,789	)
		(9,467,968	)		(10,832,138	)		(16,625,789	)
Net realized and unrealized gain (loss)		(8,519,674	)		(9,714,586	)		(14,569,910	)
Increase (decrease) in net assets from operations	($	8,168,798	)	($	9,296,135	)	($	13,898,850	)

See notes to financial statements Annual report | Lifecycle Portfolios 37

FINANCIAL STATEMENTS

Statements of operations For the year ended 8-31-08

Continued

	Lifecycle 2030 Portfolio			Lifecycle 2025 Portfolio			Lifecycle 2020 Portfolio
Investment income
Income distributions received from affiliated underlying funds	$	1,276,027		$	2,239,075		$	2,968,839
Total investment income		1,276,027			2,239,075			2,968,839
Expenses
Investment management fees (Note 4)		82,324			107,130			106,550
Distribution and service fees (Note 4)		87,930			106,403			120,301
Transfer agent fees (Note 4)		7,762			6,898			11,852
Blue sky fees (Note 4)		137,893			138,398			138,980
Fund administration fees (Note 4)		17,442			24,161			24,024
Audit and legal fees		44,838			45,361			45,360
Printing and postage fees (Note 4)		3,301			2,630			4,738
Custodian fees		10,799			10,799			10,799
Trustees’ fees (Note 5)		1,156			1,522			1,513
Registration and filing fees		19,433			22,635			22,470
Miscellaneous		88			127			124
Total expenses		412,966			466,064			486,711
Less expense reductions (Note 4)		(139,886	)		(140,086	)		(142,233	)
Net expenses		273,080			325,978			344,478
Net investment income (loss)		1,002,947			1,913,097			2,624,361
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in affiliated underlying funds		(612,801	)		(449,214	)		(590,793	)
Capital gain distributions received from affiliated underlying funds		3,698,279			4,352,462			3,727,865
		3,085,478			3,903,248			3,137,072
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds		(22,188,549	)		(27,890,182	)		(25,424,932	)
		(22,188,549	)		(27,890,182	)		(25,424,932	)
Net realized and unrealized gain (loss)		(19,103,071	)		(23,986,934	)		(22,287,860	)
Increase (decrease) in net assets from operations	($	18,100,124	)	($	22,073,837	)	($	19,663,499	)

38 Lifecycle Portfolios | Annual report See notes to financial statements

Statements of operations For the year ended 8-31-08

Continued

	Lifecycle 2015 Portfolio			Lifecycle 2010 Portfolio			Lifecycle Retirement Portfolio
Investment income
Income distributions received from affiliated underlying funds	$	3,322,752		$	2,304,907		$	2,203,379
Dividends		—			—			2,600,907
Interest		—			—			395,278
Total investment income		3,322,752			2,304,907			5,199,564
Expenses
Investment management fees (Note 4)		86,789			48,950			193,306
Distribution and service fees (Note 4)		91,348			58,890			153,690
Transfer agent fees (Note 4)		7,517			6,706			20,238
Blue sky fees (Note 4)		137,672			138,212			138,287
Fund administration fees (Note 4)		18,772			10,496			22,786
Audit and legal fees		44,993			44,232			45,338
Printing and postage fees (Note 4)		3,100			2,614			6,988
Custodian fees		10,799			10,799			10,795
Trustees’ fees (Note 5)		1,240			701			1,499
Registration and filing fees		19,681			14,632			22,415
Miscellaneous		92			48			168
Total expenses		422,003			336,280			615,510
Less expense reductions (Note 4)		(139,733	)		(146,753	)		(138,232	)
Net expenses		282,270			189,527			477,278
Net investment income (loss)		3,040,482			2,115,380			4,722,286
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		—			—			(6,308,897	)
Investments in affiliated underlying funds		(632,425	)		(705,200	)		—
Capital gain distributions received from affiliated underlying funds		2,834,634			1,339,582			2,605,078
Futures contracts		—			—			(271,846	)
Options written		—			—			45,620
		2,202,209			634,382			(3,930,045	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		—			—			(9,843,891	)
Investments in affiliated underlying funds		(18,559,834	)		(9,068,976	)		(243,551	)
Futures contracts		—			—			(598,523	)
		(18,559,834	)		(9,068,976	)		(10,685,965	)
Net realized and unrealized gain (loss)		(16,357,625	)		(8,434,594	)		(14,616,010	)
Increase (decrease) in net assets from operations	($	13,317,143	)	($	6,319,214	)	($	9,893,724	)

See notes to financial statements Annual report | Lifecycle Portfolios 39

FINANCIAL STATEMENTS

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 earnings 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
	Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Period ended 8-31-071
Increase (decrease) in net assets
From operations
Net investment income (loss)	$	350,876		($	11,225	)	$	418,451		($	11,094	)
Net realized gain (loss)		948,294			9,700			1,117,552			13,286
Change in net unrealized appreciation (depreciation)		(9,467,968	)		(19,774	)		(10,832,138	)		129,798
Increase (decrease) in net assets resulting from operations		(8,168,798	)		(21,299	)		(9,296,135	)		131,990
Distributions to shareholders
From net investment income
Class A		(8,791	)		(577	)		(5,828	)		(533	)
Class B		(645	)		(457	)		(940	)		(413	)
Class C		(628	)		(457	)		(716	)		(413	)
Class R		(615	)		(449	)		(607	)		(405	)
Class R1		(644	)		(492	)		(902	)		(448	)
Class R2		(1,046	)		(535	)		(1,964	)		(491	)
Class R3		(885	)		(509	)		(1,498	)		(465	)
Class R4		(720	)		(560	)		(755	)		(516	)
Class R5		(815	)		(611	)		(875	)		(567	)
Class 1		(284,853	)		(2,876	)		(344,058	)		(2,999	)
From realized gain
Class A		(21,747	)		(1,833	)		(14,062	)		(1,707	)
Class B		(2,729	)		(1,833	)		(3,740	)		(1,708	)
Class C		(2,660	)		(1,833	)		(2,850	)		(1,708	)
Class R		(1,850	)		(1,833	)		(1,764	)		(1,707	)
Class R1		(1,642	)		(1,833	)		(2,239	)		(1,707	)
Class R2		(2,313	)		(1,833	)		(4,259	)		(1,707	)
Class R3		(2,259	)		(1,833	)		(3,720	)		(1,707	)
Class R4		(1,592	)		(1,833	)		(1,638	)		(1,707	)
Class R5		(1,593	)		(1,833	)		(1,686	)		(1,708	)
Class 1		(556,238	)		(8,505	)		(662,429	)		(8,883	)
Total distributions		(894,265	)		(32,525	)		(1,056,530	)		(31,499	)
From Fund share transactions (Note 7)		84,894,954			25,577,406			99,254,044			27,590,614
Total increase (decrease)		75,831,891			25,523,582			88,901,379			27,691,105
Net assets
Beginning of period		25,523,582			—			27,691,105			—
End of period	$	101,355,473		$	25,523,582		$	116,592,484		$	27,691,105
Undistributed net investment income (loss)	$	51,234			—		$	60,308			—

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

40 Lifecycle Portfolios | Annual report See notes to financial statements

Statements of changes in net assets

Continued

	Lifecycle 2035 Portfolio						Lifecycle 2030 Portfolio
	Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Period ended 8-31-071
Increase (decrease) in net assets
From operations
Net investment income (loss)	$	671,060		($	7,677	)	$	1,002,947		$	15,989
Net realized gain (loss)		2,055,879			15,261			3,085,478			17,076
Change in net unrealized appreciation(depreciation)		(16,625,789	)		338,193			(22,188,549	)		184,365
Increase (decrease) in net assets resulting from operations		(13,898,850	)		345,777			(18,100,124	)		217,430
Distributions to shareholders
From net investment income
Class A		(6,293	)		(392	)		(9,651	)		(601	)
Class B		(2,514	)		(273	)		—			(481	)
Class C		(1,812	)		(273	)		—			(481	)
Class R		(783	)		(264	)		(418	)		(472	)
Class R1		(825	)		(307	)		(669	)		(515	)
Class R2		(1,230	)		(350	)		(1,364	)		(558	)
Class R3		(1,062	)		(324	)		(2,951	)		(532	)
Class R4		(898	)		(375	)		(865	)		(584	)
Class R5		(1,071	)		(427	)		(1,168	)		(635	)
Class 1		(617,110	)		(6,091	)		(908,102	)		(10,215	)
From realized gain
Class A		(11,557	)		(1,216	)		(20,840	)		(1,543	)
Class B		(6,842	)		(1,215	)		(4,260	)		(1,543	)
Class C		(4,927	)		(1,215	)		(6,510	)		(1,543	)
Class R		(1,669	)		(1,216	)		(1,939	)		(1,544	)
Class R1		(1,550	)		(1,215	)		(1,585	)		(1,544	)
Class R2		(2,067	)		(1,215	)		(2,170	)		(1,544	)
Class R3		(1,996	)		(1,215	)		(6,994	)		(1,544	)
Class R4		(1,509	)		(1,216	)		(1,379	)		(1,543	)
Class R5		(1,627	)		(1,215	)		(1,399	)		(1,543	)
Class 1		(937,628	)		(16,976	)		(1,088,293	)		(24,425	)
Total distributions		(1,604,970	)		(36,990	)		(2,060,557	)		(53,390	)
From Fund share transactions (Note 7)		140,422,057			41,335,860			195,129,585			52,610,595
Total increase (decrease)		124,918,237			41,644,647			174,968,904			52,774,635
Net assets
Beginning of period		41,644,647			—			52,774,635			—
End of period	$	166,562,884		$	41,644,647		$	227,743,539		$	52,774,635
Undistributed net investment income (loss)	$	37,462			—		$	83,058		$	5,299

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

See notes to financial statements Annual report | Lifecycle Portfolios 41

FINANCIAL STATEMENTS

Statements of changes in net assets

Continued

	Lifecycle 2025 Portfolio						Lifecycle 2020 Portfolio
	Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Period ended 8-31-071
Increase (decrease) in net assets
From operations
Net investment income (loss)	$	1,913,097		$	79,915		$	2,624,361		$	159,782
Net realized gain (loss)		3,903,248			32,642			3,137,072			(15,173	)
Change in net unrealized appreciation (depreciation)		(27,890,182	)		322,331			(25,424,932	)		206,209
Increase (decrease) in net assets resulting from operations		(22,073,837	)		434,888			(19,663,499	)		350,818
Distributions to shareholders
From net investment income
Class A		(7,864	)		(611	)		(23,967	)		(681	)
Class B		(142	)		(491	)		(2,761	)		(561	)
Class C		(150	)		(491	)		(2,651	)		(561	)
Class R		(544	)		(483	)		(1,648	)		(552	)
Class R1		(924	)		(526	)		(1,048	)		(595	)
Class R2		(2,928	)		(568	)		(2,401	)		(638	)
Class R3		(3,411	)		(543	)		(6,178	)		(612	)
Class R4		(1,056	)		(594	)		(1,323	)		(664	)
Class R5		(1,375	)		(645	)		(3,967	)		(715	)
Class 1		(1,458,550	)		(16,425	)		(1,677,701	)		(19,382	)
From realized gain
Class A		(12,152	)		(1,347	)		(24,255	)		(1,094	)
Class B		(4,596	)		(1,347	)		(9,799	)		(1,094	)
Class C		(4,875	)		(1,347	)		(9,406	)		(1,094	)
Class R		(1,419	)		(1,347	)		(2,405	)		(1,095	)
Class R1		(1,532	)		(1,347	)		(1,117	)		(1,095	)
Class R2		(3,557	)		(1,347	)		(2,017	)		(1,094	)
Class R3		(5,656	)		(1,347	)		(6,589	)		(1,095	)
Class R4		(1,283	)		(1,347	)		(1,111	)		(1,094	)
Class R5		(1,319	)		(1,348	)		(2,751	)		(1,094	)
Class 1		(1,398,183	)		(33,718	)		(1,163,398	)		(29,261	)
Total distributions		(2,911,516	)		(67,219	)		(2,946,493	)		(64,071	)
From Fund share transactions (Note 7)		244,498,725			68,682,193			240,696,406			68,276,239
Total increase (decrease)		219,513,372			69,049,862			218,086,414			68,562,986
Net assets
Beginning of period		69,049,862			—			68,562,986			—
End of period	$	288,563,234		$	69,049,862		$	286,649,400		$	68,562,986
Undistributed net investment income (loss)	$	501,450		$	65,297		$	1,041,701		$	140,985

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

42 Lifecycle Portfolios | Annual report See notes to financial statements

Statements of changes in net assets

Continued

	Lifecycle 2015 Portfolio						Lifecycle 2010 Portfolio
	Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Period ended 8-31-071
Increase (decrease) in net assets
From operations
Net investment income (loss)	$	3,040,482		$	194,938		$	2,115,380		$	152,714
Net realized gain (loss)		2,202,209			(51,240	)		634,382			(24,971	)
Change in net unrealized appreciation (depreciation)		(18,559,834	)		(64,216	)		(9,068,976	)		(9,223	)
Increase (decrease) in net assets resulting from operations		(13,317,143	)		79,482			(6,319,214	)		118,520
Distributions to shareholders
From net investment income
Class A		(16,005	)		(852	)		(17,084	)		(902	)
Class B		(2,898	)		(733	)		(1,448	)		(783	)
Class C		(1,663	)		(733	)		(6,119	)		(783	)
Class R		(1,120	)		(724	)		(1,284	)		(774	)
Class R1		(2,220	)		(767	)		(1,558	)		(817	)
Class R2		(3,128	)		(810	)		(1,832	)		(859	)
Class R3		(1,818	)		(784	)		(6,924	)		(834	)
Class R4		(1,605	)		(835	)		(1,831	)		(885	)
Class R5		(1,882	)		(886	)		(2,106	)		(936	)
Class 1		(1,666,513	)		(12,819	)		(1,067,704	)		(5,871	)
From realized gain
Class A		(12,980	)		(942	)		(9,514	)		(638	)
Class B		(5,344	)		(941	)		(1,532	)		(638	)
Class C		(3,065	)		(941	)		(6,470	)		(638	)
Class R		(1,194	)		(942	)		(898	)		(639	)
Class R1		(1,875	)		(941	)		(898	)		(638	)
Class R2		(2,187	)		(941	)		(898	)		(639	)
Class R3		(1,535	)		(941	)		(3,990	)		(639	)
Class R4		(1,121	)		(942	)		(899	)		(638	)
Class R5		(1,122	)		(942	)		(899	)		(638	)
Class 1		(993,621	)		(13,443	)		(455,838	)		(3,972	)
Total distributions		(2,722,896	)		(41,859	)		(1,589,726	)		(23,161	)
From Fund share transactions (Note 7)		182,083,635			57,945,758			109,224,697			27,185,570
Total increase (decrease)		166,043,596			57,983,381			101,315,757			27,280,929
Net assets
Beginning of period		57,983,381			—			27,280,929			—
End of period	$	224,026,977		$	57,983,381		$	128,596,686		$	27,280,929
Undistributed net investment income (loss)	$	1,526,791		$	175,759		$	1,155,750		$	140,047

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

See notes to financial statements Annual report | Lifecycle Portfolios 43

FINANCIAL STATEMENTS

Statements of changes in net assets

Continued

	Lifecycle Retirement
	Year ended 8-31-08			Period ended 8-31-071
Increase (decrease) in net assets
From operations
Net investment income (loss)	$	4,722,286		$	577,184
Net realized gain (loss)		(3,930,045	)		(30,382	)
Change in net unrealized appreciation (depreciation)		(10,685,965	)		274,678
Increase (decrease) in net assets resulting from operations		(9,893,724	)		821,480
Distributions to shareholders
From net investment income
Class A		(216,722	)		(17,815	)
Class B		(10,644	)		(2,628	)
Class C		(84,790	)		(4,077	)
Class R		(2,788	)		(1,671	)
Class R1		(2,886	)		(1,846	)
Class R2		(4,035	)		(2,022	)
Class R3		(4,719	)		(1,890	)
Class R4		(3,242	)		(2,088	)
Class R5		(3,585	)		(2,285	)
Class 1		(4,449,111	)		(529,244	)
From realized gain
Class A		(75,404	)		(755	)
Class B		(5,857	)		(755	)
Class C		(36,870	)		(755	)
Class R		(1,175	)		(755	)
Class R1		(1,178	)		(755	)
Class R2		(1,286	)		(755	)
Class R3		(2,048	)		(755	)
Class R4		(1,184	)		(755	)
Class R5		(1,184	)		(755	)
Class 1		(1,194,092	)		(34,747	)
Total distributions		(6,102,800	)		(607,108	)
From Fund share transactions (Note 7)		175,256,332			72,090,286
Total increase (decrease)		159,259,808			72,304,658
Net assets
Beginning of period		72,304,658			—
End of period	$	231,564,466		$	72,304,658
Undistributed net investment income (loss)		—		$	10,828

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

44 Lifecycle Portfolios | Annual 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
		Income (loss) from investment operations						Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.94	0.05		(1.21	)	(1.16	)	(0.06	)	(0.16	)	—	(0.22	)	9.56	(10.83	)5
08-31-20079	10.00	(0.04	)	1.22		1.18		(0.06	)	(0.18	)	—	(0.24	)	10.94	11.97	5,10
CLASS B
08-31-2008	10.89	(0.04	)	(1.20	)	(1.24	)	(0.03	)	(0.16	)	—	(0.19	)	9.46	(11.56	)5
08-31-20079	10.00	(0.05	)	1.17		1.12		(0.05	)	(0.18	)	—	(0.23	)	10.89	11.33	5,10
CLASS C
08-31-2008	10.89	(0.02	)	(1.22	)	(1.24	)	(0.03	)	(0.16	)	—	(0.19	)	9.46	(11.56	)5
08-31-20079	10.00	(0.06	)	1.18		1.12		(0.05	)	(0.18	)	—	(0.23	)	10.89	11.33	5,10
CLASS R
08-31-2008	10.91	(0.01	)	(1.20	)	(1.21	)	(0.05	)	(0.16	)	—	(0.21	)	9.49	(11.32	)5
08-31-20079	10.00	(0.03	)	1.17		1.14		(0.05	)	(0.18	)	—	(0.23	)	10.91	11.53	5,10
CLASS R1
08-31-2008	10.92	0.01		(1.19	)	(1.18	)	(0.06	)	(0.16	)	—	(0.22	)	9.52	(11.05	)5
08-31-20079	10.00	(0.01	)	1.16		1.15		(0.05	)	(0.18	)	—	(0.23	)	10.92	11.68	5,10
CLASS R2
08-31-2008	10.94	0.04		(1.19	)	(1.15	)	(0.07	)	(0.16	)	—	(0.23	)	9.56	(10.77	)5
08-31-20079	10.00	0.01		1.17		1.18		(0.06	)	(0.18	)	—	(0.24	)	10.94	11.93	5,10
CLASS R3
08-31-2008	10.93	0.03		(1.21	)	(1.18	)	(0.06	)	(0.16	)	—	(0.22	)	9.53	(11.04	)5
08-31-20079	10.00	—12		1.16		1.16		(0.05	)	(0.18	)	—	(0.23	)	10.93	11.80	5,10
CLASS R4
08-31-2008	10.95	0.06		(1.21	)	(1.15	)	(0.07	)	(0.16	)	—	(0.23	)	9.57	(10.76	)5
08-31-20079	10.00	0.02		1.17		1.19		(0.06	)	(0.18	)	—	(0.24	)	10.95	12.06	5,10
CLASS R5
08-31-2008	10.97	0.08		(1.20	)	(1.12	)	(0.08	)	(0.16	)	—	(0.24	)	9.61	(10.47	)5
08-31-20079	10.00	0.05		1.16		1.21		(0.06	)	(0.18	)	—	(0.24	)	10.97	12.32	5,10
CLASS 1
08-31-2008	10.97	0.06		(1.18	)	(1.12	)	(0.08	)	(0.16	)	—	(0.24	)	9.61	(10.47	)5
08-31-20079	10.00	(0.01	)	1.23		1.22		(0.07	)	(0.18	)	—	(0.25	)	10.97	12.32	5,10

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.61	6	0.66	7,8	0.44		1,874	16
08-31-20079	1.94	6,11	0.62	11	(0.45	)11	1,348	5	10
CLASS B
08-31-2008	7.50	6	1.35	7,8	(0.35	)	276	16
08-31-20079	5.28	6,11	1.30	11	(0.57	)11	145	5	10
CLASS C
08-31-2008	8.75	6	1.35	7,8	(0.22	)	189	16
08-31-20079	5.11	6,11	1.32	11	(0.63	)11	152	5	10
CLASS R
08-31-2008	12.23	6	1.13	7,8	(0.10	)	174	16
08-31-20079	16.73	6,11	1.08	11	(0.31	)11	121	5	10
CLASS R1
08-31-2008	12.47	6	0.89	7,8	0.08		181	16
08-31-20079	16.68	6,11	0.87	11	(0.09	)11	113	5	10
CLASS R2
08-31-2008	9.32	6	0.64	7,8	0.38		409	16
08-31-20079	16.31	6,11	0.62	11	0.15	11	117	5	10
CLASS R3
08-31-2008	10.48	6	0.81	7,8	0.28		283	16
08-31-20079	16.45	6,11	0.80	11	(0.03	)11	118	5	10
CLASS R4
08-31-2008	14.15	6	0.52	7,8	0.55		142	16
08-31-20079	16.32	6,11	0.52	11	0.26	11	112	5	10
CLASS R5
08-31-2008	12.02	6	0.24	7,8	0.72		161	16
08-31-20079	16.02	6,11	0.23	11	0.55	11	112	5	10
CLASS 1
08-31-2008	0.24	6	0.20	7	0.59		97,667	16
08-31-20079	0.64	6,11	0.20	11	(0.15	)11	23,187	5	10

See notes to financial statements Annual report | Lifecycle Portfolios 45

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2040 Portfolio

Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations						Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.96	0.05		(1.22	)	(1.17	)	(0.07	)	(0.16	)	—	(0.23	)	9.56	(10.92	)5
08-31-20079	10.00	(0.02	)	1.20		1.18		(0.05	)	(0.17	)	—	(0.22	)	10.96	11.99	5,10
CLASS B
08-31-2008	10.91	(0.01	)	(1.23	)	(1.24	)	(0.04	)	(0.16	)	—	(0.20	)	9.47	(11.56	)5
08-31-20079	10.00	(0.05	)	1.17		1.12		(0.04	)	(0.17	)	—	(0.21	)	10.91	11.35	5,10
CLASS C
08-31-2008	10.91	(0.03	)	(1.21	)	(1.24	)	(0.04	)	(0.16	)	—	(0.20	)	9.47	(11.56	)5
08-31-20079	10.00	(0.05	)	1.17		1.12		(0.04	)	(0.17	)	—	(0.21	)	10.91	11.35	5,10
CLASS R
08-31-2008	10.93	—	12	(1.21	)	(1.21	)	(0.06	)	(0.16	)	—	(0.22	)	9.50	(11.33	)5
08-31-20079	10.00	(0.03	)	1.17		1.14		(0.04	)	(0.17	)	—	(0.21	)	10.93	11.55	5,10
CLASS R1
08-31-2008	10.94	0.01		(1.20	)	(1.19	)	(0.06	)	(0.16	)	—	(0.22	)	9.53	(11.05	)5
08-31-20079	10.00	(0.01	)	1.17		1.16		(0.05	)	(0.17	)	—	(0.22	)	10.94	11.70	5,10
CLASS R2
08-31-2008	10.96	0.03		(1.20	)	(1.17	)	(0.07	)	(0.16	)	—	(0.23	)	9.56	(10.86	)5
08-31-20079	10.00	0.01		1.17		1.18		(0.05	)	(0.17	)	—	(0.22	)	10.96	11.95	5,10
CLASS R3
08-31-2008	10.95	0.01		(1.21	)	(1.20	)	(0.06	)	(0.16	)	—	(0.22	)	9.53	(11.14	)5
08-31-20079	10.00	(0.01	)	1.18		1.17		(0.05	)	(0.17	)	—	(0.22	)	10.95	11.82	5,10
CLASS R4
08-31-2008	10.97	0.04		(1.20	)	(1.16	)	(0.07	)	(0.16	)	—	(0.23	)	9.58	(10.76	)5
08-31-20079	10.00	0.02		1.17		1.19		(0.05	)	(0.17	)	—	(0.22	)	10.97	12.07	5,10
CLASS R5
08-31-2008	10.99	0.05		(1.18	)	(1.13	)	(0.08	)	(0.16	)	—	(0.24	)	9.62	(10.48	)5
08-31-20079	10.00	0.05		1.17		1.22		(0.06	)	(0.17	)	—	(0.23	)	10.99	12.33	5,10
CLASS 1
08-31-2008	10.99	0.06		(1.19	)	(1.13	)	(0.08	)	(0.16	)	—	(0.24	)	9.62	(10.48	)5
08-31-20079	10.00	(0.01	)	1.23		1.22		(0.06	)	(0.17	)	—	(0.23	)	10.99	12.34	5,10

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	2.15	6	0.65	7,8	0.49		1,257	16
08-31-20079	3.15	6,11	0.62	11	(0.18	)11	584	3	10
CLASS B
08-31-2008	7.52	6	1.35	7,8	(0.09	)	243	16
08-31-20079	5.17	6,11	1.30	11	(0.58	)11	157	3	10
CLASS C
08-31-2008	8.88	6	1.35	7,8	(0.27	)	235	16
08-31-20079	5.31	6,11	1.31	11	(0.56	)11	127	3	10
CLASS R
08-31-2008	13.87	6	1.12	7,8	(0.05	)	142	16
08-31-20079	16.78	6,11	1.08	11	(0.30	)11	115	3	10
CLASS R1
08-31-2008	9.48	6	0.89	7,8	0.09		200	16
08-31-20079	16.61	6,11	0.87	11	(0.09	)11	112	3	10
CLASS R2
08-31-2008	5.18	6	0.64	7,8	0.33		715	16
08-31-20079	14.71	6,11	0.63	11	0.07	11	274	3	10
CLASS R3
08-31-2008	5.48	6	0.83	7,8	0.06		1,181	16
08-31-20079	15.59	6,11	0.80	11	(0.07	)11	141	3	10
CLASS R4
08-31-2008	11.68	6	0.53	7,8	0.40		173	16
08-31-20079	16.23	6,11	0.52	11	0.26	11	112	3	10
CLASS R5
08-31-2008	7.95	6	0.24	7,8	0.48		633	16
08-31-20079	15.71	6,11	0.23	11	0.53	11	115	3	10
CLASS 1
08-31-2008	0.22	6	0.20	7	0.61		111,814	16
08-31-20079	0.62	6,11	0.20	11	(0.16	)11	25,954	3	10

46 Lifecycle Portfolios | Annual report See notes to financial statements

Financial highlights

Continued

Lifecycle 2035 Portfolio
Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations						Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	11.02	0.02		(1.20	)	(1.18	)	(0.08	)	(0.15	)	—	(0.23	)	9.61	(10.93	)5
08-31-20079	10.00	(0.02	)	1.20		1.18		(0.04	)	(0.12	)	—	(0.16	)	11.02	11.92	5,10
CLASS B
08-31-2008	10.97	(0.01	)	(1.23	)	(1.24	)	(0.05	)	(0.15	)	—	(0.20	)	9.53	(11.48	)5
08-31-20079	10.00	(0.06	)	1.18		1.12		(0.03	)	(0.12	)	—	(0.15	)	10.97	11.28	5,10
CLASS C
08-31-2008	10.97	—	12	(1.24	)	(1.24	)	(0.05	)	(0.15	)	—	(0.20	)	9.53	(11.48	)5
08-31-20079	10.00	(0.06	)	1.18		1.12		(0.03	)	(0.12	)	—	(0.15	)	10.97	11.28	5,10
CLASS R
08-31-2008	10.99	0.02		(1.24	)	(1.22	)	(0.07	)	(0.15	)	—	(0.22	)	9.55	(11.33	)5
08-31-20079	10.00	(0.02	)	1.16		1.14		(0.03	)	(0.12	)	—	(0.15	)	10.99	11.47	5,10
CLASS R1
08-31-2008	11.00	—	12	(1.19	)	(1.19	)	(0.08	)	(0.15	)	—	(0.23	)	9.58	(11.06	)5
08-31-20079	10.00	—	12	1.15		1.15		(0.03	)	(0.12	)	—	(0.15	)	11.00	11.62	5,10
CLASS R2
08-31-2008	11.02	(0.01	)	(1.16	)	(1.17	)	(0.09	)	(0.15	)	—	(0.24	)	9.61	(10.87	)5
08-31-20079	10.00	0.02		1.16		1.18		(0.04	)	(0.12	)	—	(0.16	)	11.02	11.87	5,10
CLASS R3
08-31-2008	11.01	0.02		(1.21	)	(1.19	)	(0.08	)	(0.15	)	—	(0.23	)	9.59	(11.05	)5
08-31-20079	10.00	0.01		1.15		1.16		(0.03	)	(0.12	)	—	(0.15	)	11.01	11.74	5,10
CLASS R4
08-31-2008	11.03	0.04		(1.20	)	(1.16	)	(0.09	)	(0.15	)	—	(0.24	)	9.63	(10.77	)5
08-31-20079	10.00	0.03		1.16		1.19		(0.04	)	(0.12	)	—	(0.16	)	11.03	12.00	5,10
CLASS R5
08-31-2008	11.05	0.08		(1.21	)	(1.13	)	(0.10	)	(0.15	)	—	(0.25	)	9.67	(10.49	)5
08-31-20079	10.00	0.06		1.15		1.21		(0.04	)	(0.12	)	—	(0.16	)	11.05	12.26	5,10
CLASS 1
08-31-2008	11.05	0.07		(1.19	)	(1.12	)	(0.10	)	(0.15	)	—	(0.25	)	9.68	(10.40	)5
08-31-20079	10.00	(0.01	)	1.23		1.22		(0.05	)	(0.12	)	—	(0.17	)	11.05	12.27	5,10

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.80	6	0.64	7,8	0.20		2,132	14
08-31-20079	2.47	6,11	0.62	11	(0.20	)11	610	4	10
CLASS B
08-31-2008	4.24	6	1.34	7,8	(0.14	)	555	14
08-31-20079	4.27	6,11	1.30	11	(0.62	)11	396	4	10
CLASS C
08-31-2008	5.91	6	1.34	7,8	(0.02	)	328	14
08-31-20079	4.13	6,11	1.31	11	(0.66	)11	243	4	10
CLASS R
08-31-2008	15.30	6	1.10	7,8	0.19		79	14
08-31-20079	16.48	6,11	1.07	11	(0.20	)11	114	4	10
CLASS R1
08-31-2008	10.40	6	0.88	7,8	(0.02	)	177	14
08-31-20079	16.29	6,11	0.86	11	0.01	11	112	4	10
CLASS R2
08-31-2008	5.25	6	0.67	7,8	(0.07	)	1,382	14
08-31-20079	15.69	6,11	0.61	11	0.24	11	153	4	10
CLASS R3
08-31-2008	9.94	6	0.81	7,8	0.24		278	14
08-31-20079	16.22	6,11	0.79	11	0.08	11	112	4	10
CLASS R4		��
08-31-2008	11.02	6	0.52	7,8	0.41		219	14
08-31-20079	15.92	6,11	0.50	11	0.36	11	112	4	10
CLASS R5
08-31-2008	11.07	6	0.23	7,8	0.78		149	14
08-31-20079	15.08	6,11	0.22	11	0.62	11	119	4	10
CLASS 1
08-31-2008	0.19	6	0.19	7	0.66		161,263	14
08-31-20079	0.45	6,11	0.20	11	(0.06	)11	39,674	4	10

See notes to financial statements Annual report | Lifecycle Portfolios 47

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2030 Portfolio
Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations						Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.91	0.04		(1.18	)	(1.14	)	(0.07	)	(0.13	)	—	(0.20	)	9.57	(10.66	)5
08-31-20079	10.00	(0.02	)	1.14		1.12		(0.06	)	(0.15	)	—	(0.21	)	10.91	11.38	5,10,13
CLASS B
08-31-2008	10.85	(0.01	)	(1.21	)	(1.22	)	—		(0.12	)	—	(0.12	)	9.51	(11.37	)5
08-31-20079	10.00	(0.05	)	1.10		1.05		(0.05	)	(0.15	)	—	(0.20	)	10.85	10.64	5,10,13
CLASS C
08-31-2008	10.85	—	12	(1.22	)	(1.22	)	—		(0.12	)	—	(0.12	)	9.51	(11.37	)5
08-31-20079	10.00	(0.05	)	1.10		1.05		(0.05	)	(0.15	)	—	(0.20	)	10.85	10.64	5,10,13
CLASS R
08-31-2008	10.86	—	12	(1.20	)	(1.20	)	(0.03	)	(0.13	)	—	(0.16	)	9.50	(11.18	)5
08-31-20079	10.00	(0.01	)	1.07		1.06		(0.05	)	(0.15	)	—	(0.20	)	10.86	10.73	5,10,13
CLASS R1
08-31-2008	10.88	—	12	(1.17	)	(1.17	)	(0.06	)	(0.13	)	—	(0.19	)	9.52	(10.92	)5
08-31-20079	10.00	0.01		1.08		1.09		(0.06	)	(0.15	)	—	(0.21	)	10.88	10.98	5,10,13
CLASS R2
08-31-2008	10.90	0.02		(1.16	)	(1.14	)	(0.09	)	(0.13	)	—	(0.22	)	9.54	(10.67	)5
08-31-20079	10.00	0.03		1.08		1.11		(0.06	)	(0.15	)	—	(0.21	)	10.90	11.23	5,10,13
CLASS R3
08-31-2008	10.88	0.08		(1.24	)	(1.16	)	(0.06	)	(0.13	)	—	(0.19	)	9.53	(10.83	)5
08-31-20079	10.00	0.02		1.07		1.09		(0.06	)	(0.15	)	—	(0.21	)	10.88	11.00	5,10,13
CLASS R4
08-31-2008	10.91	0.08		(1.22	)	(1.14	)	(0.09	)	(0.13	)	—	(0.22	)	9.55	(10.66	)5
08-31-20079	10.00	0.04		1.08		1.12		(0.06	)	(0.15	)	—	(0.21	)	10.91	11.36	5,10,13
CLASS R5
08-31-2008	10.93	0.04		(1.15	)	(1.11	)	(0.12	)	(0.13	)	—	(0.25	)	9.57	(10.41	) 5
08-31-20079	10.00	0.07		1.08		1.15		(0.07	)	(0.15	)	—	(0.22	)	10.93	11.62	5,10,13
CLASS 1
08-31-2008	10.93	0.08		(1.19	)	(1.11	)	(0.12	)	(0.13	)	—	(0.25	)	9.57	(10.41	)
08-31-20079	10.00	0.01		1.14		1.15		(0.07	)	(0.15	)	—	(0.22	)	10.93	11.63	5,10,13

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.33	6	0.63	7,8	0.43		3,345	10
08-31-20079	2.02	6,11	0.63	11	(0.23	)11	1,135	3	10
CLASS B
08-31-2008	4.89	6	1.33	7,8	(0.09	)	523	10
08-31-20079	3.90	6,11	1.31	11	(0.57	)11	298	3	10
CLASS C
08-31-2008	3.96	6	1.33	7,8	0.04		490	10
08-31-20079	3.82	6,11	1.31	11	(0.59	)11	551	3	10
CLASS R
08-31-2008	10.12	6	1.11	7,8	0.03		229	10
08-31-20079	16.04	6,11	1.07	11	(0.11	)11	131	3	10
CLASS R1
08-31-2008	8.40	6	0.88	7,8	0.02		320	10
08-31-20079	16.24	6,11	0.86	11	0.12	11	112	3	10
CLASS R2
08-31-2008	5.58	6	0.65	7,8	0.15		1,334	10
08-31-20079	15.95	6,11	0.61	11	0.37	11	143	3	10
CLASS R3
08-31-2008	4.24	6	0.78	7,8	0.76		676	10
08-31-20079	16.18	6,11	0.79	11	0.19	11	112	3	10
CLASS R4
08-31-2008	14.83	6	0.49	7,8	0.79		115	10
08-31-20079	15.88	6,11	0.50	11	0.47	11	111	3	10
CLASS R5
08-31-2008	6.18	6	0.24	7,8	0.42		1,002	10
08-31-20079	15.57	6,11	0.22	11	0.76	11	112	3	10
CLASS 1
08-31-2008	0.18		0.18	7	0.75		219,711	10
08-31-20079	0.38	6,11	0.20	11	0.12	11	50,070	3	10

48 Lifecycle Portfolios | Annual report See notes to financial statements

Financial highlights

Continued

Lifecycle 2025 Portfolio

Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations						Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.85	0.05		(1.12	)	(1.07	)	(0.08	)	(0.13	)	—	(0.21	)	9.57	(10.08	)5
08-31-20079	10.00	0.02		1.03		1.05		(0.07	)	(0.13	)	—	(0.20	)	10.85	10.57	5,10,14
CLASS B
08-31-2008	10.80	0.02		(1.18	)	(1.16	)	—		(0.13	)	—	(0.13	)	9.51	(10.87	)5
08-31-20079	10.00	(0.03	)	1.01		0.98		(0.05	)	(0.13	)	—	(0.18	)	10.80	9.94	5,10,14
CLASS C
08-31-2008	10.80	0.02		(1.18	)	(1.16	)	—		(0.13	)	—	(0.13	)	9.51	(10.87	)5
08-31-20079	10.00	(0.03	)	1.01		0.98		(0.05	)	(0.13	)	—	(0.18	)	10.80	9.94	5,10,14
CLASS R
08-31-2008	10.82	0.05		(1.19	)	(1.14	)	(0.04	)	(0.13	)	—	(0.17	)	9.51	(10.66	)5
08-31-20079	10.00	0.01		0.99		1.00		(0.05	)	(0.13	)	—	(0.18	)	10.82	10.13	5,10,14
CLASS R1
08-31-2008	10.83	0.03		(1.14	)	(1.11	)	(0.07	)	(0.13	)	—	(0.20	)	9.52	(10.42	)5
08-31-20079	10.00	0.03		0.99		1.02		(0.06	)	(0.13	)	—	(0.19	)	10.83	10.28	5,10,14
CLASS R2
08-31-2008	10.85	0.08		(1.17	)	(1.09	)	(0.10	)	(0.13	)	—	(0.23	)	9.53	(10.26	)5
08-31-20079	10.00	0.05		0.99		1.04		(0.06	)	(0.13	)	—	(0.19	)	10.85	10.53	5,10,14
CLASS R3
08-31-2008	10.84	0.13		(1.24	)	(1.11	)	(0.07	)	(0.13	)	—	(0.20	)	9.53	(10.41	)5
08-31-20079	10.00	0.03		1.00		1.03		(0.06	)	(0.13	)	—	(0.19	)	10.84	10.40	5,10,14
CLASS R4
08-31-2008	10.86	0.09		(1.17	)	(1.08	)	(0.10	)	(0.13	)	—	(0.23	)	9.55	(10.16	)5
08-31-20079	10.00	0.06		0.99		1.05		(0.06	)	(0.13	)	—	(0.19	)	10.86	10.65	5,10,14
CLASS R5
08-31-2008	10.88	0.09		(1.14	)	(1.05	)	(0.13	)	(0.13	)	—	(0.26	)	9.57	(9.91	)5
08-31-20079	10.00	0.09		0.99		1.08		(0.07	)	(0.13	)	—	(0.20	)	10.88	10.91	5,10,14
CLASS 1
08-31-2008	10.88	0.11		(1.15	)	(1.04	)	(0.13	)	(0.13	)	—	(0.26	)	9.58	(9.81	)5
08-31-20079	10.00	0.04		1.04		1.08		(0.07	)	(0.13	)	—	(0.20	)	10.88	10.93	5,10,14

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.49	6	0.62	7,8	0.52		3,604	9
08-31-20079	2.25	11,6	0.63	11	0.19	11	661	3	10
CLASS B
08-31-2008	4.38	6	1.32	7,8	0.17		666	9
08-31-20079	3.82	11,6	1.31	11	(0.32	)11	257	3	10
CLASS C
08-31-2008	4.56	6	1.32	7,8	0.23		685	9
08-31-20079	3.81	11,6	1.32	11	(0.32	)11	232	3	10
CLASS R
08-31-2008	13.55	6	1.09	7,8	0.46		140	9
08-31-20079	16.31	11,6	1.08	11	0.14	11	113	3	10
CLASS R1
08-31-2008	8.37	6	0.87	7,8	0.27		285	9
08-31-20079	16.14	11,6	0.87	11	0.35	11	111	3	10
CLASS R2
08-31-2008	5.67	6	0.63	7,8	0.82		1,703	9
08-31-20079	15.70	11,6	0.62	11	0.59	11	117	3	10
CLASS R3
08-31-2008	5.37	6	0.78	7,8	1.22		456	9
08-31-20079	14.43	11,6	0.81	11	0.34	11	186	3	10
CLASS R4
08-31-2008	11.76	6	0.49	7,8	0.90		207	9
08-31-20079	15.77	11,6	0.52	11	0.70	11	111	3	10
CLASS R5
08-31-2008	7.87	6	0.21	7,8	0.92		285	9
08-31-20079	15.34	11,6	0.23	11	0.98	11	113	3	10
CLASS 1
08-31-2008	0.17	6	0.17	7,8	1.08		280,532	9
08-31-20079	0.31	11,6	0.20	11	0.39	11	67,149	3	10

See notes to financial statements Annual report | Lifecycle Portfolios 49

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2020 Portfolio

Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations					Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2	Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.80	0.12	(1.05	)	(0.93	)	(0.11	)	(0.11	)	—	(0.22	)	9.65	(8.82	)5
08-31-20079	10.00	0.04	0.94		0.98		(0.07	)	(0.11	)	—	(0.18	)	10.80	9.87	5,10,15
CLASS B
08-31-2008	10.75	0.07	(1.08	)	(1.01	)	(0.03	)	(0.11	)	—	(0.14	)	9.60	(9.52	)5
08-31-20079	10.00	0.01	0.91		0.92		(0.06	)	(0.11	)	—	(0.17	)	10.75	9.24	5,10,15
CLASS C
08-31-2008	10.75	0.08	(1.09	)	(1.01	)	(0.03	)	(0.11	)	—	(0.14	)	9.60	(9.52	)5
08-31-20079	10.00	—12	0.92		0.92		(0.06	)	(0.11	)	—	(0.17	)	10.75	9.24	5,10,15
CLASS R
08-31-2008	10.76	0.08	(1.07	)	(0.99	)	(0.07	)	(0.11	)	—	(0.18	)	9.59	(9.32	)5
08-31-20079	10.00	0.05	0.87		0.92		(0.05	)	(0.11	)	—	(0.16	)	10.76	9.33	5,10,15
CLASS R1
08-31-2008	10.78	0.08	(1.04	)	(0.96	)	(0.10	)	(0.11	)	—	(0.21	)	9.61	(9.07	)5
08-31-20079	10.00	0.07	0.88		0.95		(0.06	)	(0.11	)	—	(0.17	)	10.78	9.58	5,10,15
CLASS R2
08-31-2008	10.79	0.07	(0.99	)	(0.92	)	(0.13	)	(0.11	)	—	(0.24	)	9.63	(8.73	)5
08-31-20079	10.00	0.08	0.88		0.96		(0.06	)	(0.11	)	—	(0.17	)	10.79	9.72	5,10,15
CLASS R3
08-31-2008	10.78	0.15	(1.10	)	(0.95	)	(0.10	)	(0.11	)	—	(0.21	)	9.62	(8.98	)5
08-31-20079	10.00	0.07	0.88		0.95		(0.06	)	(0.11	)	—	(0.17	)	10.78	9.59	5,10,15
CLASS R4
08-31-2008	10.80	0.16	(1.08	)	(0.92	)	(0.13	)	(0.11	)	—	(0.24	)	9.64	(8.72	)5
08-31-20079	10.00	0.10	0.88		0.98		(0.07	)	(0.11	)	—	(0.18	)	10.80	9.85	5,10,15
CLASS R5
08-31-2008	10.82	0.19	(1.08	)	(0.89	)	(0.16	)	(0.11	)	—	(0.27	)	9.66	(8.47	)5
08-31-20079	10.00	0.10	0.90		1.00		(0.07	)	(0.11	)	—	(0.18	)	10.82	10.11	5,10,15
CLASS 1
08-31-2008	10.82	0.15	(1.03	)	(0.88	)	(0.16	)	(0.11	)	—	(0.27	)	9.67	(8.38	)5
08-31-20079	10.00	0.07	0.93		1.00		(0.07	)	(0.11	)	—	(0.18	)	10.82	10.12	5,10,15

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.15	6	0.62	7,8	1.18		4,285	10
08-31-20079	1.59	6,11	0.64	11	0.49	11	1,491	7	10
CLASS B
08-31-2008	2.72	6	1.32	7,8	0.68		1,278	10
08-31-20079	3.29	6,11	1.32	11	0.06	11	607	7	10
CLASS C
08-31-2008	2.94	6	1.32	7,8	0.76		1,132	10
08-31-20079	3.52	6,11	1.32	11	—	11,12	613	7	10
CLASS R
08-31-2008	10.14	6	1.10	7,8	0.81		211	10
08-31-20079	16.25	6,11	1.08	11	0.52	11	119	7	10
CLASS R1
08-31-2008	9.71	6	0.86	7,8	0.77		250	10
08-31-20079	16.14	6,11	0.87	11	0.74	11	110	7	10
CLASS R2
08-31-2008	3.70	6	0.64	7,8	0.74		1,520	10
08-31-20079	15.23	6,11	0.62	11	0.92	11	214	7	10
CLASS R3
08-31-2008	3.97	6	0.78	7,8	1.48		825	10
08-31-20079	15.58	6,11	0.80	11	0.80	11	126	7	10
CLASS R4
08-31-2008	13.87	6	0.48	7,8	1.50		138	10
08-31-20079	15.75	6,11	0.52	11	1.09	11	110	7	10
CLASS R5
08-31-2008	6.46	6	0.21	7,8	1.83		758	10
08-31-20079	8.22	6,11	0.23	11	1.08	11	272	7	10
CLASS 1
08-31-2008	0.17	6	0.17	7,8	1.49		276,252	10
08-31-20079	0.32	6,11	0.20	11	0.78	11	64,901	7	10

50 Lifecycle Portfolios | Annual report See notes to financial statements

Financial highlights

Continued

Lifecycle 2015 Portfolio

Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations					Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2	Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.65	0.18	(0.92	)	(0.74	)	(0.14	)	(0.11	)	—	(0.25	)	9.66	(7.16	)5
08-31-20079	10.00	0.07	0.76		0.83		(0.09	)	(0.09	)	—	(0.18	)	10.65	8.37	5,10,16
CLASS B
08-31-2008	10.60	0.13	(0.95	)	(0.82	)	(0.06	)	(0.11	)	—	(0.17	)	9.61	(7.86	)5
08-31-20079	10.00	0.04	0.73		0.77		(0.08	)	(0.09	)	—	(0.17	)	10.60	7.74	5,10,16
CLASS C
08-31-2008	10.60	0.12	(0.94	)	(0.82	)	(0.06	)	(0.11	)	—	(0.17	)	9.61	(7.86	)5
08-31-20079	10.00	0.06	0.71		0.77		(0.08	)	(0.09	)	—	(0.17	)	10.60	7.74	5,10,16
CLASS R
08-31-2008	10.62	0.14	(0.94	)	(0.80	)	(0.10	)	(0.11	)	—	(0.21	)	9.61	(7.66	)5
08-31-20079	10.00	0.09	0.70		0.79		(0.08	)	(0.09	)	—	(0.17	)	10.62	7.93	5,10,16
CLASS R1
08-31-2008	10.63	0.16	(0.93	)	(0.77	)	(0.13	)	(0.11	)	—	(0.24	)	9.62	(7.41	)5
08-31-20079	10.00	0.11	0.69		0.80		(0.08	)	(0.09	)	—	(0.17	)	10.63	8.08	5,10,16
CLASS R2
08-31-2008	10.65	0.16	(0.90	)	(0.74	)	(0.16	)	(0.11	)	—	(0.27	)	9.64	(7.16	)5
08-31-20079	10.00	0.12	0.71		0.83		(0.09	)	(0.09	)	—	(0.18	)	10.65	8.33	5,10,16
CLASS R3
08-31-2008	10.63	0.15	(0.91	)	(0.76	)	(0.13	)	(0.11	)	—	(0.24	)	9.63	(7.32	)5
08-31-20079	10.00	0.11	0.69		0.80		(0.08	)	(0.09	)	—	(0.17	)	10.63	8.10	5,10,16
CLASS R4
08-31-2008	10.65	0.21	(0.94	)	(0.73	)	(0.16	)	(0.11	)	—	(0.27	)	9.65	(7.06	)5
08-31-20079	10.00	0.14	0.69		0.83		(0.09	)	(0.09	)	—	(0.18	)	10.65	8.35	5,10,16
CLASS R5
08-31-2008	10.67	0.18	(0.88	)	(0.70	)	(0.19	)	(0.11	)	—	(0.30	)	9.67	(6.81	)5
08-31-20079	10.00	0.16	0.69		0.85		(0.09	)	(0.09	)	—	(0.18	)	10.67	8.61	5,10,16
CLASS 1
08-31-2008	10.68	0.21	(0.91	)	(0.70	)	(0.19	)	(0.11	)	—	(0.30	)	9.68	(6.80	)5
08-31-20079	10.00	0.10	0.76		0.86		(0.09	)	(0.09	)	—	(0.18	)	10.68	8.72	5,10,16

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.43	6	0.63	7,8	1.74		2,776	10
08-31-20079	2.19	6,11	0.63	11	0.86	11	836	9	10
CLASS B
08-31-2008	3.46	6	1.32	7,8	1.27		902	10
08-31-20079	3.28	6,11	1.32	11	0.46	11	458	9	10
CLASS C
08-31-2008	4.53	6	1.33	7,8	1.15		762	10
08-31-20079	4.01	6,11	1.32	11	0.65	11	261	9	10
CLASS R
08-31-2008	12.94	6	1.10	7,8	1.39		169	10
08-31-20079	16.63	6,11	1.08	11	0.99	11	110	9	10
CLASS R1
08-31-2008	8.84	6	0.86	7,8	1.61		207	10
08-31-20079	16.47	6,11	0.87	11	1.21	11	108	9	10
CLASS R2
08-31-2008	5.34	6	0.64	7,8	1.57		1,202	10
08-31-20079	15.31	6,11	0.62	11	1.34	11	161	9	10
CLASS R3
08-31-2008	6.20	6	0.81	7,8	1.48		693	10
08-31-20079	16.38	6,11	0.80	11	1.28	11	108	9	10
CLASS R4
08-31-2008	12.64	6	0.50	7,8	2.02		172	10
08-31-20079	16.08	6,11	0.52	11	1.56	11	108	9	10
CLASS R5
08-31-2008	5.09	6	0.22	7,8	1.81		464	10
08-31-20079	15.77	6,11	0.23	11	1.84	11	109	9	10
CLASS 1
08-31-2008	0.18	6	0.18	7	2.12		216,679	10
08-31-20079	0.36	6,11	0.20	11	1.19	11	55,723	9	10

See notes to financial statements Annual report | Lifecycle Portfolios 51

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2010 Portfolio

Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations					Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2	Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.54	0.23	(0.83	)	(0.60	)	(0.16	)	(0.09	)	—	(0.25	)	9.69	(5.87	)5
08-31-20079	10.00	0.12	0.57		0.69		(0.09	)	(0.06	)	—	(0.15	)	10.54	6.99	5,10,17
CLASS B
08-31-2008	10.49	0.20	(0.87	)	(0.67	)	(0.08	)	(0.09	)	—	(0.17	)	9.65	(6.48	)5
08-31-20079	10.00	0.11	0.52		0.63		(0.08	)	(0.06	)	—	(0.14	)	10.49	6.36	5,10,17
CLASS C
08-31-2008	10.50	0.19	(0.86	)	(0.67	)	(0.08	)	(0.09	)	—	(0.17	)	9.66	(6.47	)5
08-31-20079	10.00	0.10	0.54		0.64		(0.08	)	(0.06	)	—	(0.14	)	10.50	6.46	5,10,17
CLASS R
08-31-2008	10.51	0.22	(0.86	)	(0.64	)	(0.13	)	(0.09	)	—	(0.22	)	9.65	(6.27	)5
08-31-20079	10.00	0.13	0.52		0.65		(0.08	)	(0.06	)	—	(0.14	)	10.51	6.56	5,10,17
CLASS R1
08-31-2008	10.52	0.23	(0.85	)	(0.62	)	(0.15	)	(0.09	)	—	(0.24	)	9.66	(6.02	)5
08-31-20079	10.00	0.15	0.52		0.67		(0.09	)	(0.06	)	—	(0.15	)	10.52	6.70	5,10,17
CLASS R2
08-31-2008	10.54	0.18	(0.77	)	(0.59	)	(0.18	)	(0.09	)	—	(0.27	)	9.68	(5.77	)5
08-31-20079	10.00	0.17	0.52		0.69		(0.09	)	(0.06	)	—	(0.15	)	10.54	6.95	5,10,17
CLASS R3
08-31-2008	10.53	0.26	(0.88	)	(0.62	)	(0.15	)	(0.09	)	—	(0.24	)	9.67	(6.02	)5
08-31-20079	10.00	0.16	0.52		0.68		(0.09	)	(0.06	)	—	(0.15	)	10.53	6.82	5,10,17
CLASS R4
08-31-2008	10.55	0.26	(0.85	)	(0.59	)	(0.18	)	(0.09	)	—	(0.27	)	9.69	(5.76	)5
08-31-20079	10.00	0.18	0.52		0.70		(0.09	)	(0.06	)	—	(0.15	)	10.55	7.08	5,10,17
CLASS R5
08-31-2008	10.57	0.24	(0.80	)	(0.56	)	(0.21	)	(0.09	)	—	(0.30	)	9.71	(5.51	)5
08-31-20079	10.00	0.21	0.52		0.73		(0.10	)	(0.06	)	—	(0.16	)	10.57	7.33	5,10,17
CLASS 1
08-31-2008	10.57	0.26	(0.81	)	(0.55	)	(0.21	)	(0.09	)	—	(0.30	)	9.72	(5.41	)5
08-31-20079	10.00	0.16	0.57		0.73		(0.10	)	(0.06	)	—	(0.16	)	10.57	7.34	5,10,17

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	1.61	6	0.65	7,8	2.28		2,050	14
08-31-20079	2.45	6,11	0.63	11	1.42	11	665	17	10
CLASS B
08-31-2008	8.12	6	1.35	7,8	1.96		224	14
08-31-20079	5.13	6,11	1.30	11	1.23	11	131	17	10
CLASS C
08-31-2008	3.21	6	1.35	7,8	1.85		985	14
08-31-20079	4.20	6,11	1.32	11	1.15	11	415	17	10
CLASS R
08-31-2008	16.36	6	1.12	7,8	2.16		102	14
08-31-20079	17.12	6,11	1.09	11	1.49	11	107	17	10
CLASS R1
08-31-2008	14.92	6	0.87	7,8	2.30		126	14
08-31-20079	16.89	6,11	0.87	11	1.70	11	107	17	10
CLASS R2
08-31-2008	3.54	6	0.69	7,8	1.87		2,274	14
08-31-20079	16.62	6,11	0.62	11	1.95	11	107	17	10
CLASS R3
08-31-2008	3.95	6	0.82	7,8	2.64		795	14
08-31-20079	16.81	6,11	0.80	11	1.77	11	107	17	10
CLASS R4
08-31-2008	12.38	6	0.53	7,8	2.56		205	14
08-31-20079	16.51	6,11	0.52	11	2.06	11	107	17	10
CLASS R5
08-31-2008	10.30	6	0.25	7,8	2.41		498	14
08-31-20079	16.20	6,11	0.23	11	2.34	11	107	17	10
CLASS 1
08-31-2008	0.21	6	0.20	7	2.61		121,337	14
08-31-20079	0.56	6,11	0.20	11	1.78	11	25,428	17	10

52 Lifecycle Portfolios | Annual report See notes to financial statements

Financial highlights

Continued

Lifecycle Retirement Portfolio

Per share operating performance for a share outstanding throughout each period
		Income (loss) from investment operations					Less distributions
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2	Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3
CLASS A
08-31-2008	10.33	0.27	(0.70	)	(0.43	)	(0.30	)	(0.11	)	—	(0.41	)	9.49	(4.35	)
08-31-20079	10.00	0.15	0.46		0.61		(0.20	)	(0.08	)	—	(0.28	)	10.33	6.19	5,10,18
CLASS B
08-31-2008	10.31	0.24	(0.74	)	(0.50	)	(0.23	)	(0.11	)	—	(0.34	)	9.47	(5.03	)
08-31-20079	10.00	0.15	0.39		0.54		(0.15	)	(0.08	)	—	(0.23	)	10.31	5.47	5,10,18
CLASS C
08-31-2008	10.31	0.18	(0.68	)	(0.50	)	(0.23	)	(0.11	)	—	(0.34	)	9.47	(5.03	)
08-31-20079	10.00	0.11	0.43		0.54		(0.15	)	(0.08	)	—	(0.23	)	10.31	5.48	5,10,18
CLASS R
08-31-2008	10.31	0.25	(0.72	)	(0.47	)	(0.26	)	(0.11	)	—	(0.37	)	9.47	(4.78	)
08-31-20079	10.00	0.18	0.37		0.55		(0.16	)	(0.08	)	—	(0.24	)	10.31	5.55	5,10,18
CLASS R1
08-31-2008	10.31	0.27	(0.72	)	(0.45	)	(0.28	)	(0.11	)	—	(0.39	)	9.47	(4.54	)
08-31-20079	10.00	0.19	0.38		0.57		(0.18	)	(0.08	)	—	(0.26	)	10.31	5.73	5,10,18
CLASS R2
08-31-2008	10.31	0.26	(0.68	)	(0.42	)	(0.31	)	(0.11	)	—	(0.42	)	9.47	(4.30	)
08-31-20079	10.00	0.22	0.37		0.59		(0.20	)	(0.08	)	—	(0.28	)	10.31	5.90	5,10,18
CLASS R3
08-31-2008	10.31	0.29	(0.72	)	(0.43	)	(0.29	)	(0.11	)	—	(0.40	)	9.48	(4.39	)
08-31-20079	10.00	0.20	0.37		0.57		(0.18	)	(0.08	)	—	(0.26	)	10.31	5.77	5,10,18
CLASS R4
08-31-2008	10.32	0.31	(0.73	)	(0.42	)	(0.31	)	(0.11	)	—	(0.42	)	9.48	(4.22	)
08-31-20079	10.00	0.23	0.37		0.60		(0.20	)	(0.08	)	—	(0.28	)	10.32	6.07	5,10,18
CLASS R5
08-31-2008	10.32	0.33	(0.71	)	(0.38	)	(0.34	)	(0.11	)	—	(0.45	)	9.49	(3.86	)
08-31-20079	10.00	0.25	0.37		0.62		(0.22	)	(0.08	)	—	(0.30	)	10.32	6.27	5,10,18
CLASS 1
08-31-2008	10.32	0.28	(0.66	)	(0.38	)	(0.34	)	(0.11	)	—	(0.45	)	9.49	(3.83	)
08-31-20079	10.00	0.19	0.43		0.62		(0.22	)	(0.08	)	—	(0.30	)	10.32	6.29	5,10,18

Ratios and supplemental data
	Ratios to average net assets
Period ended	Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%)1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2008	0.86	6	0.68	7,8	2.69		10,640	59
08-31-20079	1.24	6,11	0.68	11	1.82	11	4,270	56	10
CLASS B
08-31-2008	4.50	6	1.37	7,8	2.37		431	59
08-31-20079	3.17	6,11	1.36	11	1.69	11	387	56	10
CLASS C
08-31-2008	1.66	6	1.38	7,8	1.80		6,374	59
08-31-20079	2.59	6,11	1.38	11	1.26	11	1,358	56	10
CLASS R
08-31-2008	15.33	6	1.14	7,8	2.49		101	59
08-31-20079	16.32	6,11	1.12	11	2.04	11	106	56	10
CLASS R1
08-31-2008	16.11	6	0.89	7,8	2.73		102	59
08-31-20079	16.09	6,11	0.91	11	2.25	11	106	56	10
CLASS R2
08-31-2008	11.61	6	0.66	7,8	2.67		157	59
08-31-20079	15.77	6,11	0.66	11	2.49	11	110	56	10
CLASS R3
08-31-2008	10.74	6	0.84	7,8	2.89		184	59
08-31-20079	16.01	6,11	0.84	11	2.32	11	106	56	10
CLASS R4
08-31-2008	15.77	6	0.54	7,8	3.08		103	59
08-31-20079	15.71	6,11	0.55	11	2.60	11	106	56	10
CLASS R5
08-31-2008	15.17	6	0.25	7,8	3.33		111	59
08-31-20079	15.41	6,11	0.27	11	2.89	11	106	56	10
CLASS 1
08-31-2008	0.23	6	0.23	7	2.87		213,362	59
08-31-20079	0.38	6,11	0.25	11	2.24	11	65,651	56	10

See notes to financial statements Annual report | Lifecycle Portfolios 53

FINANCIAL STATEMENTS

Financial highlights

Continued

Notes to Financial Highlights

1	Recognition 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.
2	Based on the average of the shares outstanding.
3	Assumes dividend reinvestment and does not reflect the effect of sales charges.
4	Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
5	Total returns would have been lower had certain expenses not been reduced during the periods shown.
6	Does not take into consideration expense reductions during the periods shown.
7	Ratios 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 Portfolios was as follows:

	Lifecycle 2045	Lifecycle 2040	Lifecycle 2035	Lifecycle 2030	Lifecycle 2025	Lifecycle 2020	Lifecycle 2015	Lifecycle 2010	Lifecycle Retirement
8/31/08	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%	0.49%–1.13%

8	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
9	Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
10	Not annualized.
11	Annualized.
12	Less than $0.01 per share.
13	The 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 B, Class C, Class R, Class R1, Class R2 and Class 1.
14	The Adviser made a payment to the Portfolio of $2,707. Excluding this payment, total returns would have been 10.03% and 10.91% for Class R and Class R5, respectively. There was no effect to the total returns for Class A, Class B, Class C, Class R1, Class R2, Class R3, Class R4 and Class 1.
15	The Adviser made a payment to the Portfolio of $2,881. Excluding this payment, total returns would have been 9.48% for Class R1. There was no effect to the total returns for Class A, Class B, Class C, Class R, Class R2, Class R3, Class R4, Class R5 and Class 1.
16	The Adviser made a payment to the Portfolio of $6,640. Excluding this payment, total returns would have been 7.83%, 7.98% and 8.22% for Class R, Class R1 and Class R2, respectively. There was no effect to the total returns for Class A, Class B, Class C, Class R3, Class R4, Class R5 and Class 1.
17	The Adviser made a payment to the Portfolio of $4,286. Excluding this payment, total returns would have been 6.45%, 6.85%, 6.72%, 6.97% and 7.23% for Class R, Class R2, Class R3, Class R4 and Class R5, respectively. There was no effect to the total returns for Class A, Class B, Class C, Class R1 and Class 1.
18	The Adviser made a payment to the Portfolio of $21,459. Excluding this payment, total returns would have been 5.45%, 5.63%, 5.90%, 5.67%, 5.97% and 6.17% for Class R, Class R1, Class R2, Class R3, Class R4 and Class R5, respectively. There was no effect to the total returns for Class A, Class B, Class C and Class 1.

54 Lifecycle Portfolios | Annual report See notes to financial statements

Notes to financial statements

1. Organization of the Trust

The John Hancock Funds II (the Trust or JHF II) is an open-end management investment company organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (the 1940 Act) as amended. It is a series company, which means that it has several funds, each with a stated investment objective that it pursues through separate investment policies. The Trust currently offers seventy-five separate investment funds, nine of which are covered by this report: Lifecycle 2045, Lifecycle 2040, Lifecycle 2035, Lifecycle 2030, Lifecycle 2025, Lifecycle 2020, Lifecycle 2015, Lifecycle 2010 and Lifecycle Retirement (collectively, Lifecycle Portfolios or the Portfolios).

Each of the Lifecycle Portfolios is non-diversified for purposes of the 1940 Act.

The Lifecycle Portfolios operate as “fund of funds”, investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III (JHF III), and also in other affiliated funds of the John Hancock funds complex. It may also invest in unaffiliated underlying funds and other permitted security investments.

The JHF III funds are retail mutual funds advised by John Hancock Investment Management Services, LLC (JHIMS or the Adviser) and distributed by John Hancock Funds, LLC (the Distributor).

The accounting policies of the affiliated underlying funds of the Trust are outlined in the shareholder reports for such funds, available without charge by calling 1-800-225-5291 or on the Securities and Exchange Commission (SEC) Web site at www.sec.gov, or at the Commission’s public reference room in Washington, D.C. The affiliated underlying funds are not covered by this report.

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

The Board of Trustees has authorized the issuance of multiple classes of shares of the Portfolios, including classes designated as Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4, Class R5 and Class 1 shares. Class A, Class B and Class C shares are open to all retail investors. Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares are available only to certain retirement plans. Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. The shares of each class represent an interest in the same portfolio of investments of the Portfolios, and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the SEC and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan. Class B shares will convert to Class A shares eight years after purchase.

At August 31, 2008, John Hancock USA owned shares of beneficial interest for the following Portfolios:

Portfolio	Class C	Class R	Class R1	Class R2	Class R3	Class R4	Class R5
Lifecycle 2045	10,408	10,422	10,435	—	10,436	10,450	10,463
Lifecycle 2040	—	10,412	—	—	—	10,440	—
Lifecycle 2035	—	—	—	—	—	10,378	—
Lifecycle 2030	—	10,353	—	—	—	10,418	—
Lifecycle 2025	—	10,345	—	—	—	10,410	—
Lifecycle 2020	—	—	—	—	—	10,402	—
Lifecycle 2015	—	10,371	—	—	—	10,435	—
Lifecycle 2010	—	10,350	10,380	—	—	10,413	10,445
Lifecycle Retirement	—	10,575	10,612	10,649	10,619	10,660	10,701

2. Significant accounting policies

The Financial Statements have been prepared in conformity with accounting policies generally accepted in the United States of America, which require estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. The following summarizes the significant accounting policies of the Funds.

Annual report | Lifecycle Portfolios 55

Securities valuation

The net asset value of the shares of each Portfolio is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. Investments by the Lifecycle Portfolios in underlying funds are valued at their respective net asset values each business day and securities in the underlying funds are valued in accordance with their respective valuation polices, as outlined in the underlying funds’ financial statements. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. All other securities held by the Portfolios and by the underlying affiliated funds are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity.

New accounting pronouncements

In September 2006, Financial Accounting Standards Board (FASB) Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. As of August 31, 2008, management does not believe the adoption of FAS 157 will have a material impact on the amounts reported in the financial statements.

In March 2008, FASB No. 161 (FAS 161), Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (FAS 133), was issued and is effective for fiscal years or interim periods beginning after November 15, 2008. FAS 161 amends and expands the disclosure requirements of FAS 133 in order to provide financial statement users an understanding of a company’s use of derivative instruments, how derivative instruments are accounted for under FAS 133 and related interpretations and how these instruments affect a company’s financial position, performance and cash flows. FAS 161 requires companies to disclose information detailing the objectives and strategies for using derivative instruments, the level of derivative activity entered into by the company, and any credit risk-related contingent features of the agreements. Management is currently evaluating the adoption of FAS 161 on the Portfolio’s financial statement disclosures.

Security transactions and related investment income

Investment security and underlying affiliated funds transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded by the underlying affiliated funds on the ex-dividend date. Distributions from the underlying affiliated funds are recorded on the ex-dividend date. Distributions to shareholders are recorded on the ex-dividend date. Distributions from the underlying unaffiliated Funds and securities are recorded on the ex-dividend date. Dividend income and distributions to shareholders are recorded on the ex-dividend date.

The Portfolios use the specific identification method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.

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 Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

Allocations of income and expenses

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

Expenses not directly attributable to a particular Portfolio or share class are allocated based on the relative share of net assets of each Portfolio or share class at the time the expense was incurred. Class-specific expenses, such as Distribution (Rule 12b-1) fees, transfer agency fees, blue sky fees, and printing and postage fees, are accrued daily and charged directly to the respective share classes. Expenses in the Lifecycle Portfolios’ Statements of Operations reflect the expenses of the Portfolios and do not include any indirect expenses related to the underlying affiliated funds. Because the underlying funds have varied expense levels and the Lifecycle Portfolios may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the Lifecycle Portfolios will vary.

Options

Lifecycle Retirement may purchase and sell put and call options on securities (whether or not it holds the securities in its portfolio), securities indices, currencies and futures contracts.

When the Portfolio writes a put or call option, an amount equal to the premium received by the Portfolio is recorded as a liability and is subsequently marked-to-market to reflect the current market value of the option written. If an option expires or if the Portfolio enters into an offsetting purchase option, the Portfolio realizes a gain (or loss if the cost of an offsetting purchase option exceeds the premium received when the option was written). If a written call option is exercised, the Portfolio realizes a gain or loss from the sale of the underlying security with the proceeds of the sale increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security that the Portfolio purchases upon exercise of the option.

56 Lifecycle Portfolios | Annual report

When the Portfolio purchases a put or call option, the premium paid by the Portfolio is included in the Portfolio of Investments and subsequently “marked-to-market” to reflect the current market value of the option. If the purchased option expires, the Portfolio realizes a loss for the cost of the option. If the Portfolio enters into a closing sale transaction, the Portfolio realizes a gain or loss, depending on whether proceeds from the closing sale transaction are greater or less than the original cost of the option. If the Portfolio exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the Portfolio exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid.

The Portfolio may use options to manage exposure to fluctuations in currency values. Writing puts and buying calls may increase the Portfolio’s exposure to the underlying instrument. Buying puts and writing calls may decrease the Portfolio’s exposure to the underlying instrument. Losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts or if the counterparties do not perform under the terms of the contract.

Written options for the year ended August 31, 2008, were as follows:

Lifecycle Retirement	Number of Contracts			Premiums Received
Outstanding, beginning of period		—			—
Options written		10			$             53,470
Option closed		(10	)		(53,470	)
Options expired		—			—
Outstanding, end of period		—			—

There were no open written options outstanding as of August 31, 2008.

Futures

Lifecycle Retirement may purchase and sell financial futures contracts and options on those contracts. The Portfolio may invest in contracts based on financial instruments such as U.S. Treasury Bonds or Notes, or on securities indices such as the S&P 500 Index, in order to hedge against a decline in the value of securities owned by the Portfolio.

Initial margin deposits required upon entering into futures contracts are satisfied by the delivery of specific securities or cash as collateral to the broker (the Portfolios’ agent in acquiring the futures position). If the position is closed out by taking an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made, cash is required to be paid to or released by the broker and the Portfolio realizes a gain or loss.

When the Portfolio sells a futures contract based on a financial instrument, the Portfolio becomes obligated to deliver that kind of instrument at an agreed upon date for a specified price. The Portfolio realizes a gain or loss depending on whether the price of an offsetting purchase is less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase. The Portfolio could be exposed to risks if it could not close out futures positions because of an illiquid secondary market or the inability of counterparties to meet the terms of their contracts. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.

The following is a summary of open futures contracts at August 31, 2008:

Portfolio	Open Contracts	Number of Contracts	Position	Expiration Date	Notional Value		Unrealized Appreciation (Depreciation)
Lifecycle Retirement	S&P 500 Index Futures	139	Long	Sep 2008	$ 8,914,070		($543,650	)
	Russell E Mini 2000 Index Futures	41	Short	Sep 2008	(3,033,590	)	(14,924	)
	U.S. Treasury 10-Year Note Futures	15	Short	Sep 2008	(1,750,313	)	(39,949	)
							($598,523	)

Federal income taxes

Each Portfolio seeks 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.

Each Portfolio adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109 (FIN 48), at the beginning of the Fund’s fiscal year. FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not have a material impact on the accompanying financial statements. Each of the Funds’ federal tax returns for the prior fiscal year remain subject to examination by the Internal Revenue Service.

Annual report | Lifecycle Portfolios 57

Distribution of income and gains

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

The tax character of distributions paid during 2008 and 2007 was as follows:

	Year Ended August 31, 2008 Distributions				Period Ended August 31, 2007 Distributions
Portfolio	Ordinary Income	Long Term Capital Gains	Return of Capital	Total	Ordinary Income	Long Term Capital Gains	Return of Capital	Total
Lifecycle 2045	$     830,254	$   64,011	—	$    894,265	$   31,888	$     637	—	$    32,525
Lifecycle 2040	984,508	72,022	—	1,056,530	30,881	618	—	31,499
Lifecycle 2035	1,559,943	45,027	—	1,604,970	36,296	694	—	36,990
Lifecycle 2030	2,060,557	—	—	2,060,557	52,233	1,157	—	53,390
Lifecycle 2025	2,911,516	—	—	2,911,516	65,770	1,449	—	67,219
Lifecycle 2020	2,946,493	—	—	2,946,493	62,687	1,384	—	64,071
Lifecycle 2015	2,722,896	—	—	2,722,896	40,828	1,031	—	41,859
Lifecycle 2010	1,589,726	—	—	1,589,726	22,506	655	—	23,161
Lifecycle Retirement	5,993,973	108,827	—	6,102,800	607,108	—	—	607,108

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 share class.

As of August 31, 2008, the components of distributable earnings on a tax basis, were as follows:

Portfolio	Undistributed Ordinary Income	Undistributed Long Term Capital Gains	Capital Loss Carryforward	Post- October Deferral
Lifecycle 2045	$       51,657	$   1,011,681	—	—
Lifecycle 2040	60,618	1,259,245	—	—
Lifecycle 2035	37,463	2,094,662	—	—
Lifecycle 2030	139,417	2,560,916	—	—
Lifecycle 2025	699,455	2,917,612	—	—
Lifecycle 2020	1,137,499	2,508,788	—	—
Lifecycle 2015	1,685,708	1,810,560	—	—
Lifecycle 2010	1,248,048	862,944	—	—
Lifecycle Retirement	—	917,579	—	—

Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund’s financial statements as a return of capital.

Capital accounts within financial statements are adjusted for permanent book/tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book/tax differences will reverse in a subsequent period.

3. Risk and uncertainty

Investment risk

Certain underlying funds may invest a portion of their assets in securities of issuers that hold mortgage securities, including subprime mortgage securities. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

Derivatives and counterparty risk

The use of derivative instruments may involve risks different from, or potentially greater than, the risks associated with investing directly in securities. Specifically, derivative instruments exposes a 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 to 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, in the event of default, the fund will succeed in enforcing them.

4. Investment advisory and other agreements

Advisory fees

The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating sub-advisers to handle the investment of the assets of the Portfolios, subject to the supervision of the Board of Trustees. The advisory fee has two components: (a) a fee on assets invested in affiliated Funds (“Affiliated Fund Assets”) and (b) a fee on assets not invested in affiliated funds (“Other Assets”). Affiliated Funds are any Fund of JHF II and JHF III. Under the Advisory Agreement, the Portfolios pay a daily management fee to the Adviser as stated below:

58 Lifecycle Portfolios | Annual report

The fee on Affiliated Fund Assets is stated as an annual percentage of the current value of the aggregate net assets of all the Portfolios determined in accordance with the following schedule, and that rate is applied to the Affiliated Fund Assets of each Portfolio.

Portfolio	First $7.5 billion of Aggregate Net Assets	Excess over $7.5 billion of Aggregate Net Assets
Lifecycle Portfolios	0.06%	0.05%

The fee on Other Assets is stated as an annual percentage of the current value of the aggregate net assets of all the Portfolios determined in accordance with the following schedule, and that rate is applied to the Other Assets of each Portfolio.

Portfolio	First $7.5 billion of Aggregate Net Assets	Excess over $7.5 billion of Aggregate Net Assets
Lifecycle Portfolios	0.51%	0.50%

The Portfolios are not responsible for the payment of sub-advisory fees.

MFC Global Investment Management (U.S.A.) Limited acts as Sub-adviser to the Lifecycle Portfolios.

The investment management fees incurred for the year ended August 31, 2008, were equivalent to an annual effective rate of the Portfolio’s average daily net assets as follows:

Portfolio	Annual Effective Rate	Portfolio	Annual Effective Rate
Lifecycle 2045	0.06%	Lifecycle 2020	0.06%
Lifecycle 2040	0.06%	Lifecycle 2015	0.06%
Lifecycle 2035	0.06%	Lifecycle 2010	0.06%
Lifecycle 2030	0.06%	Lifecycle Retirement	0.11%
Lifecycle 2025	0.06%

Expense reimbursements

The Adviser has contractually agreed to reimburse for certain Portfolio level expenses for the period January 1, 2008 to December 31, 2008 (excluding management fees, underlying fund expenses, Rule 12b-1 fees, transfer agency fees, service plan fees, blue sky fees, printing and postage fees, taxes, Portfolio brokerage commissions, interest, litigation and indemnification expenses, other expenses not incurred in the ordinary course of the Portfolios’ business, and fees under any agreement or plans of the Portfolios dealing with services for shareholders and others with beneficial interests in shares of the Portfolio) that exceed 0.09% of the average annual net assets. Also, the Adviser has agreed to reimburse or to make a payment to a specific class of shares of the Portfolios in an amount equal to the amount by which the expenses attributable to such class of shares exceed the percentage of average annual net assets (on an annualized basis) attributable as follows: 0.50% for Class A, 1.20% for Class B, 1.20% for Class C, 1.05% for Class R, 0.80% for Class R1, 0.55% for Class R2, 0.70% for Class R3, 0.40% for Class R4 and 0.10% for Class R5, and 0.05% for Class 1 for the Lifecycle funds. These expense reimbursements shall continue in effect until December 31, 2008, and thereafter until terminated by the Adviser on notice to JHF II.

For the period September 1, 2007 to December 31, 2007, the Adviser had agreed to reimburse or to make a payment to a specific class of shares of the Portfolios in an amount equal to the amount by which the expenses attributable to such class of shares exceed the percentage of average annual net assets (on an annualized basis) attributable as follows: 0.65% for Class A, 1.35% for Class B, 1.35% for Class C, 1.20% for Class R, 0.95% for Class R1, 0.70% for Class R2, 0.85% for Class R3, 0.55% for Class R4 and 0.25% for Class R5, for Lifecycle 2045, Lifecycle 2040, Lifecycle 2035, Lifecycle 2030, Lifecycle 2025, Lifecycle 2020, Lifecycle 2015 and Lifecycle 2010 and 0.69% for Class A, 1.39% for Class B, 1.39% for Class C, 1.24% for Class R, 0.99% for Class R1, 0.74% for Class R2, 0.89% for Class R3, 0.59% for Class R4, 0.29% for Class R5 for Lifecycle Retirement.

For the year ended August 31, 2008, the expense reductions 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 B		Class C		Class R		Class R1		Class R2		Class R3		Class R4		Class R5		Class 1
Lifecycle 2045	$	15,123	$	13,854	$	13,746	$	16,066	$	16,031	$	16,025	$	16,106	$	16,160	$	16,212	$	20,657
Lifecycle 2040		14,475		13,959		13,971		16,071		15,946		15,930		16,107		16,147		16,291		14,487
Lifecycle 2035		14,437		14,065		13,922		16,081		15,964		15,726		16,058		16,146		16,204		—
Lifecycle 2030		15,141		13,909		14,301		15,994		15,895		15,763		15,970		16,129		16,193		—
Lifecycle 2025		15,372		13,962		13,960		16,041		15,885		15,898		16,029		16,145		16,232		—
Lifecycle 2020		16,099		14,651		14,564		16,087		15,999		15,660		16,066		16,214		16,250		—
Lifecycle 2015		14,809		14,215		13,916		16,029		15,918		15,819		15,995		16,144		16,301		—
Lifecycle 2010		14,708		13,839		14,555		16,073		16,025		15,477		16,009		16,160		16,382		7,093
Lifecycle Retirement		14,694		14,010		12,690		16,056		16,034		15,991		16,054		16,143		16,173		—

Annual report | Lifecycle Portfolios 59

Fund administration fees

Pursuant to the Advisory 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, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each Portfolio at the time the expense was incurred.

The fund administration fees incurred for the year ended August 31, 2008, were equivalent to an annual effective 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 Plans with respect to Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4 and Class 1, pursuant to Rule 12b-1 under the 1940 Act, to reimburse the Distributor for the services it provides as distributor of shares of the Portfolios. Accordingly, the Portfolios make daily payments to the Distributor at an annual rate up to 0.30%, 1.00%, 1.00%, 0.75%, 0.50%, 0.25%, 0.50%, 0.25% and 0.05% of the average daily net assets of Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4 and Class 1, respectively. A maximum of 0.25% of average daily net assets may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority (formerly, National Association of Securities Dealers). Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

The Portfolios have also adopted a Service Plan with respect to Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares (the “Service Plan”). Under the Service Plan, the Portfolios pay up to 0.25%, 0.25%, 0.25%, 0.15%, 0.10% and 0.05% of average daily net assets of Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares.

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 year ended August 31, 2008:

	Lifecycle 2045		Lifecycle 2040		Lifecycle 2035		Lifecycle 2030		Lifecycle 2025		Lifecycle 2020		Lifecycle 2015		Lifecycle 2010		Lifecycle Retirement
Net sales charges	$	18,555	$	17,244	$	22,278	$	33,914	$	66,083	$	71,324	$	49,329	$	26,693	$	186,434
Retained for printing prospectuses, advertising and sales literature		2,760		2,761		3,413		5,263		10,855		11,519		8,359		4,248		32,051
Sales commission to unrelated broker-dealers		15,408		14,483		18,567		28,607		53,231		59,704		40,970		22,399		152,801
Sales commission to affiliated sales personnel		387		—		298		44		1,997		101		—		46		1,582

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolios in connection with the sale of Class B and Class C shares. During the year ended August 31, 2008, CDSCs received by the Distributor amounted to $32, $718, $1,643, $139, $1,287, $1,256, $479 and $53 for Lifecycle 2045, Lifecycle 2040, Lifecycle 2035, Lifecycle 2030, Lifecycle 2025, Lifecycle 2020, Lifecycle 2015 and Lifecycle Retirement, respectively, for Class B shares. There were no CDSCs received by the Distributor for Lifecycle 2010 and Lifecycle Retirement for Class B shares. CDSCs received by the Distributor amounted to $148, $372, $1,195, $246, $167, $525, $530 and $1,526 for Lifecycle 2040, Lifecycle 2035, Lifecycle 2030, Lifecycle 2025, Lifecycle 2020, Lifecycle 2015, Lifecycle 2010 and Lifecycle Retirement, respectively, for Class C shares. There were no CDSCs received by the Distributor for Lifecycle 2045 for Class C shares.

Transfer agent fees

The Portfolios have a Transfer Agency Agreement with John Hancock Signature Services, Inc. (“Signature Services”), an indirect subsidiary of MFC. For Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares, the Portfolio pays a monthly transfer agent fee at an annual rate of 0.05% of each class’s average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value. Lifecycle Portfolios pay a monthly fee which is based on an annual rate of $15.00 for each Class A shareholder account, $17.50 for each class B shareholder account, $16.50 for each Class C shareholder account and $15.00 for each Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shareholder account.

60 Lifecycle Portfolios | Annual report

Signature Services has contractually agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of Class A, Class B, Class C, Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares average daily net assets. This agreement is effective until December 31, 2008.

In addition, Signature Services has voluntarily agreed to further limit transfer agent fees for Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares so that such fees do not exceed 0.05% annually of each class’s average daily net assets. This voluntary agreement was terminated on June 1, 2008. For period ended June 30, 2008, the transfer agent voluntary fee reductions amounted to the following and are reflected as a reductions of total expenses in the Statement of Operations:

	Transfer agent fee reduction by class
Portfolio	Class R	Class R1	Class R2	Class R3	Class R4	Class R5
Lifecycle 2045	$    91	$    98	$    106	$    95	$    23	$    51
Lifecycle 2040	108	92	91	130	31	65
Lifecycle 2035	83	108	113	90	25	63
Lifecycle 2030	132	106	84	121	22	50
Lifecycle 2025	97	102	104	91	31	68
Lifecycle 2020	117	107	97	134	25	71
Lifecycle 2015	94	114	104	101	34	73
Lifecycle 2010	55	70	56	136	30	44
Lifecycle Retirement	34	55	65	58	31	35

Signature Services reserves the right to terminate this limitation at any time.

In August 2007, the Fund began receiving earnings credits from its transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Fund’s transfer agent fees and out of pocket expenses. During the year ended August 31, 2008, the Fund’s transfer agent fees and out of pocket expenses were reduced by the following amount for transfer agent credits earned.

	Lifecycle 2045		Lifecycle 2040		Lifecycle 2035		Lifecycle 2030		Lifecycle 2025		Lifecycle 2020		Lifecycle 2015		Lifecycle 2010		Lifecycle Retirement
Transfer agent earning credit	$	52	$	53	$	58	$	76	$	69	$	92	$	67	$	41	$	109

Class level expenses for the year ended August 31, 2008, were as follows:

Portfolio	Share class	Distribution and service fees		Transfer agent fees		Blue sky fees		Printing and postage fees
Lifecycle 2045	Class A	$	4,784	$	3,213	$	13,727	$	906
	Class B		2,254		460		13,587		194
	Class C		1,861		379		13,587		108
	Class R		1,092		182		16,116		147
	Class R1		696		192		16,116		103
	Class R2		465		232		16,116		155
	Class R3		838		203		16,116		92
	Class R4		297		87		16,116		86
	Class R5		—		130		16,116		95
	Class 1		28,888		—		—		—
	Total	$	41,175	$	5,078	$	137,597	$	1,886
Lifecycle 2040	Class A	$	2,894		1,949	$	13,727	$	563
	Class B		2,262		463		13,727		187
	Class C		1,857		378		13,828		109
	Class R		952		195		16,116		131
	Class R1		934		201		16,116		147
	Class R2		881		291		16,116		346
	Class R3		1,745		387		16,116		185
	Class R4		363		111		16,116		111
	Class R5		—		204		16,116		148
	Class 1		33,751		—		—		—
	Total	$	45,639	$	4,179	$	137,978	$	1,927

Annual report | Lifecycle Portfolios 61

Portfolio	Share class	Distribution and service fees		Transfer agent fees		Blue sky fees		Printing and postage fees
Lifecycle 2035	Class A	$	3,759	$	2,529	$	13,749	$	687
	Class B		4,864		984		13,609		455
	Class C		3,047		619		13,749		172
	Class R		854		150		16,139		119
	Class R1		844		213		16,139		133
	Class R2		866		341		16,139		273
	Class R3		885		203		16,138		100
	Class R4		385		108		16,138		118
	Class R5		—		148		16,138		112
	Class 1		50,241		—		—		—
	Total	$	65,745	$	5,295	$	137,938	$	2,169
Lifecycle 2030	Class A	$	6,494	$	4,360	$	13,727	$	1,414
	Class B		3,910		798		13,588		322
	Class C		5,435		1,101		13,882		419
	Class R		1,342		236		16,116		192
	Class R1		1,063		259		16,116		165
	Class R2		803		318		16,116		235
	Class R3		2,330		381		16,116		314
	Class R4		282		85		16,116		82
	Class R5		—		224		16,116		158
	Class 1		66,271		—		—		—
	Total	$	87,930	$	7,762	$	137,893	$	3,301
Lifecycle 2025	Class A	$	5,331	$	3,583	$	14,388	$	984
	Class B		4,559		925		13,587		375
	Class C		4,310		874		13,727		233
	Class R		971		184		16,116		130
	Class R1		1,065		248		16,116		168
	Class R2		793		410		16,116		229
	Class R3		1,756		328		16,116		239
	Class R4		359		131		16,116		107
	Class R5		—		215		16,116		165
	Class 1		87,259		—		—		—
	Total	$	106,403	$	6,898	$	138,398	$	2,630
Lifecycle 2020	Class A	$	9,011	$	6,043	$	14,240	$	1,860
	Class B		10,449		2,112		13,699		952
	Class C		9,018		1,823		13,907		657
	Class R		1,345		238		16,189		195
	Class R1		911		234		16,189		138
	Class R2		1,289		510		16,189		442
	Class R3		2,543		499		16,189		341
	Class R4		303		105		16,189		90
	Class R5		—		288		16,189		63
	Class 1		85,432		—		—		—
	Total	$	120,301	$	11,852	$	138,980	$	4,738
Lifecycle 2015	Class A	$	5,502	$	3,703	$	13,659	$	1,150
	Class B		6,662		1,345		13,659		557
	Class C		4,347		875		13,658		258
	Class R		1,022		183		16,116		139
	Class R1		1,005		245		16,116		165
	Class R2		848		390		16,116		282
	Class R3		1,496		347		16,116		176
	Class R4		333		124		16,116		101
	Class R5		—		305		16,116		272
	Class 1		70,133		—		—		—
	Total	$	91,348	$	7,517	$	137,672	$	3,100

62 Lifecycle Portfolios | Annual report

Portfolio	Share class	Distribution and service fees		Transfer agent fees		Blue sky fees		Printing and postage fees
Lifecycle 2010	Class A	$	4,611	$	3,090	$	13,758	$	832
	Class B		2,045		413		13,658		168
	Class C		7,845		1,578		13,958		532
	Class R		793		121		16,116		112
	Class R1		573		147		16,116		79
	Class R2		1,363		530		16,116		346
	Class R3		2,580		510		16,116		346
	Class R4		342		129		16,116		101
	Class R5		—		188		16,258		98
	Class 1		38,738		—		—		—
	Total	$	58,890	$	6,706	$	138,212	$	2,614
Lifecycle Retirement	Class A	$	24,114	$	11,373	$	14,107	$	5,348
	Class B		4,483		905		13,648		362
	Class C		45,036		7,261		13,768		703
	Class R		851		97		16,128		118
	Class R1		529		117		16,128		74
	Class R2		367		151		16,127		123
	Class R3		813		150		16,127		101
	Class R4		265		89		16,127		82
	Class R5		—		95		16,127		77
	Class 1		77,232		—		—		—
	Total	$	153,690	$	20,238	$	138,287	$	6,988

5. Trustees’ fees

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

6. Custody overdraft

Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Fund to make properly authorized payments. When such payments result in an overdraft, the Fund is obligated to repay the Custodian for any overdraft, including any costs or expenses associated with the overdraft. The Custodian has a lien and security interest in any Fund property to the extent of any overdraft.

Annual report | Lifecycle Portfolios 63

7. Portfolio share transactions

Share activities for the Portfolios for the periods ended August 31, 2008, and August 31, 2007, were as follows:

Lifecycle 2045 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		98,037		$	1,018,036			124,259		$	1,386,752
Distributions reinvested		2,858			30,538			235			2,410
Repurchased		(27,860	)		(285,948	)		(1,362	)		(15,519	)
Net increase		73,035		$	762,626			123,132		$	1,373,643
Class B shares
Sold		28,315		$	293,920			13,076		$	134,159
Distributions reinvested		316			3,363			223			2,290
Repurchased		(12,813	)		(127,822	)		—			—
Net increase		15,818		$	169,461			13,299		$	136,449
Class C shares
Sold		6,278		$	66,271			13,755		$	139,477
Distributions reinvested		292			3,103			224			2,290
Repurchased		(560	)		(5,554	)		(2	)		(20	)
Net increase		6,010		$	63,820			13,977		$	141,747
Class R shares
Sold		7,021		$	71,102			10,833		$	109,197
Distributions reinvested		232			2,465			222			2,282
Repurchased		(11	)		(109	)		(2	)		(21	)
Net increase (decrease)		7,242		$	73,458			11,053		$	111,458
Class R1 shares
Sold		8,488		$	85,788			10,116		$	101,285
Distributions reinvested		214			2,286			227			2,325
Repurchased		(65	)		(633	)		(2	)		(20	)
Net increase		8,637		$	87,441			10,341		$	103,590
Class R2 shares
Sold		43,295		$	431,933			10,429		$	104,746
Distributions reinvested		314			3,359			231			2,368
Repurchased		(11,469	)		(114,671	)		(2	)		(22	)
Net increase		32,140		$	320,621			10,658		$	107,092
Class R3 shares
Sold		21,803		$	217,375			10,529		$	105,905
Distributions reinvested		295			3,144			229			2,342
Repurchased		(3,120	)		(31,851	)		(2	)		(22	)
Net increase		18,978		$	188,668			10,756		$	108,225
Class R4 shares
Sold		5,216		$	52,001			10,000		$	100,000
Distributions reinvested		216			2,312			233			2,393
Repurchased		(872	)		(8,736	)		—			—
Net increase		4,560		$	45,577			10,233		$	102,393
Class R5 shares
Sold		6,695		$	68,210			10,000		$	100,000
Distributions reinvested		225			2,408			238			2,444
Repurchased		(391	)		(3,782	)		—			—
Net increase		6,529		$	66,836			10,238		$	102,444
Class 1 shares
Sold		7,983,512		$	82,402,161			2,141,873		$	23,604,482
Distributions reinvested		78,533			841,091			1,110			11,381
Repurchased		(11,424	)		(126,806	)		(29,626	)		(325,498	)
Net increase		8,050,621		$	83,116,446			2,113,357		$	23,290,365
Net increase		8,223,570		$	84,894,954			2,327,044		$	25,577,406

¹         Period from 10-30-06 (commencement of operations) to 8-31-07.

64 Lifecycle Portfolios | Annual report

Lifecycle 2040 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		118,633		$	1,239,743			53,068		$	571,474
Distributions reinvested		1,861			19,890			218			2,240
Repurchased		(42,305	)		(422,298	)		—			—
Net increase		78,189		$	837,335			53,286		$	573,714
Class B shares
Sold		23,684		$	251,706			14,639		$	150,579
Distributions reinvested		439			4,680			206			2,121
Repurchased		(12,894	)		(129,491	)		(468	)		(4,938	)
Net increase		11,229		$	126,895			14,377		$	147,762
Class C shares
Sold		25,422		$	260,996			11,420		$	115,887
Distributions reinvested		323			3,444			206			2,121
Repurchased		(12,536	)		(125,786	)		(2	)		(21	)
Net increase		13,209		$	138,654			11,624		$	117,987
Class R shares
Sold		4,253		$	43,142			10,337		$	103,722
Distributions reinvested		222			2,371			206			2,112
Repurchased		(79	)		(750	)		(2	)		(21	)
Net increase (decrease)		4,396		$	44,763			10,541		$	105,813
Class R1 shares
Sold		20,931		$	215,989			10,032		$	100,352
Distributions reinvested		294			3,141			210			2,155
Repurchased		(10,475	)		(99,534	)		(2	)		(21	)
Net increase		10,750		$	119,596			10,240		$	102,486
Class R2 shares
Sold		62,292		$	616,164			24,799		$	261,681
Distributions reinvested		582			6,223			214			2,198
Repurchased		(13,108	)		(131,647	)		(5	)		(53	)
Net increase		49,766		$	490,740			25,008		$	263,826
Class R3 shares
Sold		128,579		$	1,248,512			12,679		$	130,104
Distributions reinvested		489			5,218			211			2,172
Repurchased		(18,094	)		(178,830	)		(2	)		(22	)
Net increase		110,974		$	1,074,900			12,888		$	132,254
Class R4 shares
Sold		11,713		$	118,813			10,002		$	100,020
Distributions reinvested		224			2,393			216			2,223
Repurchased		(4,073	)		(42,234	)		(2	)		(22	)
Net increase		7,864		$	78,972			10,216		$	102,221
Class R5 shares
Sold		85,659		$	842,514			10,269		$	102,858
Distributions reinvested		239			2,561			221			2,275
Repurchased		(30,558	)		(297,549	)		(2	)		(22	)
Net increase		55,340		$	547,526			10,488		$	105,111
Class 1 shares
Sold		9,191,245		$	95,022,350			2,375,526		$	26,086,277
Distributions reinvested		93,889			1,006,487			1,157			11,882
Repurchased		(20,936	)		(234,174	)		(15,090	)		(158,719	)
Net increase		9,264,198		$	95,794,663			2,361,593		$	25,939,440
Net increase		9,605,915		$	99,254,044			2,520,261		$	27,590,614

¹         Period from 10-30-06 (commencement of operations) to 8-31-07.

Annual report | Lifecycle Portfolios 65

Lifecycle 2035 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		196,006		$	2,041,324			61,634		$	679,752
Distributions reinvested		1,672			17,849			156			1,608
Repurchased		(31,220	)		(324,132	)		(6,467	)		(69,755	)
Net increase		166,458		$	1,735,041			55,323		$	611,605
Class B shares
Sold		40,058		$	425,469			35,972		$	385,605
Distributions reinvested		874			9,356			144			1,488
Repurchased		(18,788	)		(199,268	)		(63	)		(665	)
Net increase		22,144		$	235,557			36,053		$	386,428
Class C shares
Sold		25,658		$	279,939			22,044		$	230,444
Distributions reinvested		536			5,740			144			1,488
Repurchased		(13,968	)		(150,848	)		(2	)		(21	)
Net increase		12,226		$	134,831			22,186		$	231,911
Class R shares
Sold		19,880		$	201,125			10,258		$	102,858
Distributions reinvested		229			2,452			143			1,480
Repurchased		(22,220	)		(227,053	)		(2	)		(21	)
Net increase (decrease)		(2,111	)	$	(23,476	)		10,399		$	104,317
Class R1 shares
Sold		18,677		$	191,534			10,056		$	100,617
Distributions reinvested		217			2,332			147			1,522
Repurchased		(10,610	)		(101,427	)		(2	)		(21	)
Net increase		8,284		$	92,439			10,201		$	102,118
Class R2 shares
Sold		142,396		$	1,398,517			13,697		$	141,109
Distributions reinvested		306			3,297			152			1,565
Repurchased		(12,781	)		(129,019	)		(2	)		(22	)
Net increase		129,921		$	1,272,795			13,847		$	142,652
Class R3 shares
Sold		29,045		$	298,140			10,002		$	100,021
Distributions reinvested		285			3,058			149			1,539
Repurchased		(10,473	)		(100,269	)		(2	)		(22	)
Net increase		18,857		$	200,929			10,149		$	101,538
Class R4 shares
Sold		18,345		$	182,548			10,000		$	100,000
Distributions reinvested		224			2,407			154			1,591
Repurchased		(5,947	)		(56,797	)		—			—
Net increase		12,622		$	128,158			10,154		$	101,591
Class R5 shares
Sold		15,402		$	159,749			10,622		$	106,656
Distributions reinvested		250			2,698			159			1,642
Repurchased		(10,996	)		(110,754	)		(2	)		(22	)
Net increase		4,656		$	51,693			10,779		$	108,276
Class 1 shares
Sold		13,037,246		$	136,162,654			3,619,334		$	39,775,763
Distributions reinvested		144,091			1,554,738			2,233			23,067
Repurchased		(104,135	)		(1,123,302	)		(32,200	)		(353,406	)
Net increase		13,077,202		$	136,594,090			3,589,367		$	39,445,424
Net increase		13,450,259		$	140,422,057			3,768,458		$	41,335,860

¹         Period from 10-30-06 (commencement of operations) to 8-31-07.

66 Lifecycle Portfolios | Annual report

Lifecycle 2030 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		289,702		$	3,012,936			104,649		$	1,154,412
Distributions reinvested		2,865			30,623			209			2,144
Repurchased		(47,030	)		(492,880	)		(766	)		(8,094	)
Net increase		245,537		$	2,550,679			104,092		$	1,148,462
Class B shares
Sold		47,041		$	478,082			27,333		$	287,630
Distributions reinvested		396			4,233			197			2,024
Repurchased		(19,905	)		(208,883	)		(39	)		(437	)
Net increase		27,532		$	273,432			27,491		$	289,217
Class C shares
Sold		31,099		$	324,051			50,632		$	529,920
Distributions reinvested		578			6,169			197			2,024
Repurchased		(31,005	)		(323,375	)		—			—
Net increase		672		$	6,845			50,829		$	531,944
Class R shares
Sold		12,120		$	122,761			11,832		$	120,346
Distributions reinvested		221			2,357			196			2,016
Repurchased		(274	)		(2,721	)		(2	)		(21	)
Net increase (decrease)		12,067		$	122,397			12,026		$	122,341
Class R1 shares
Sold		34,528		$	347,211			10,080		$	100,887
Distributions reinvested		208			2,217			201			2,059
Repurchased		(11,401	)		(112,864	)		(2	)		(21	)
Net increase		23,335		$	236,564			10,279		$	102,925
Class R2 shares
Sold		144,745		$	1,413,285			12,892		$	131,544
Distributions reinvested		331			3,534			205			2,102
Repurchased		(18,261	)		(179,343	)		(2	)		(22	)
Net increase		126,815		$	1,237,476			13,095		$	133,624
Class R3 shares
Sold		78,378		$	829,159			10,079		$	100,857
Distributions reinvested		932			9,945			202			2,076
Repurchased		(18,674	)		(198,780	)		(2	)		(22	)
Net increase		60,636		$	640,324			10,279		$	102,911
Class R4 shares
Sold		2,214		$	22,031			10,002		$	100,020
Distributions reinvested		210			2,244			207			2,127
Repurchased		(629	)		(6,325	)		(2	)		(22	)
Net increase		1,795		$	17,950			10,207		$	102,125
Class R5 shares
Sold		149,048		$	1,451,436			10,000		$	100,000
Distributions reinvested		241			2,567			212			2,178
Repurchased		(54,791	)		(530,702	)		—			—
Net increase		94,498		$	923,301			10,212		$	102,178
Class 1 shares
Sold		18,232,119		$	187,652,703			4,625,239		$	50,428,286
Distributions reinvested		187,107			1,996,434			3,380			34,640
Repurchased		(49,768	)		(528,520	)		(46,270	)		(488,058	)
Net increase		18,369,458		$	189,120,617			4,582,349		$	49,974,868
Net increase		18,962,345		$	195,129,585			4,830,859		$	52,610,595

¹         Period from 10-30-06 (commencement of operations) to 8-31-07.

Annual report | Lifecycle Portfolios 67

Lifecycle 2025 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		361,450		$	3,703,251			60,756		$	647,664
Distributions reinvested		1,640			17,449			191			1,958
Repurchased		(47,605	)		(488,900	)		—			—
Net increase		315,485		$	3,231,800			60,947		$	649,622
Class B shares
Sold		60,998		$	632,404			23,983		$	250,457
Distributions reinvested		322			3,416			179			1,838
Repurchased		(15,122	)		(157,598	)		(370	)		(3,914	)
Net increase		46,198		$	478,222			23,792		$	248,381
Class C shares
Sold		63,029		$	658,808			21,270		$	220,502
Distributions reinvested		344			3,655			179			1,838
Repurchased		(12,783	)		(133,371	)		(2	)		(21	)
Net increase		50,590		$	529,092			21,447		$	222,319
Class R shares
Sold		4,088		$	41,973			10,312		$	103,398
Distributions reinvested		185			1,963			178			1,830
Repurchased		(7	)		(66	)		—			—
Net increase (decrease)		4,266		$	43,870			10,490		$	105,228
Class R1 shares
Sold		32,763		$	329,022			10,040		$	100,442
Distributions reinvested		232			2,456			183			1,873
Repurchased		(13,265	)		(126,697	)		(2	)		(21	)
Net increase		19,730		$	204,781			10,221		$	102,294
Class R2 shares
Sold		178,139		$	1,738,279			10,622		$	106,772
Distributions reinvested		391			4,146			187			1,915
Repurchased		(10,732	)		(113,356	)		(2	)		(22	)
Net increase		167,798		$	1,629,069			10,807		$	108,665
Class R3 shares
Sold		54,594		$	577,342			16,965		$	178,186
Distributions reinvested		855			9,067			184			1,890
Repurchased		(24,749	)		(248,136	)		(2	)		(22	)
Net increase		30,700		$	338,273			17,147		$	180,054
Class R4 shares
Sold		11,846		$	119,032			10,002		$	100,021
Distributions reinvested		220			2,339			189			1,941
Repurchased		(594	)		(6,004	)		(2	)		(22	)
Net increase		11,472		$	115,367			10,189		$	101,940
Class R5 shares
Sold		30,069		$	309,143			10,190		$	102,021
Distributions reinvested		254			2,694			194			1,993
Repurchased		(10,901	)		(108,814	)		(2	)		(22	)
Net increase		19,422		$	203,023			10,382		$	103,992
Class 1 shares
Sold		22,895,610		$	235,338,535			6,225,701		$	67,419,547
Distributions reinvested		269,249			2,856,733			4,892			50,143
Repurchased		(45,102	)		(470,040	)		(57,570	)		(609,992	)
Net increase		23,119,757		$	237,725,228			6,173,023		$	66,859,698
Net increase		23,785,418		$	244,498,725			6,348,445		$	68,682,193

¹        Period from 10-30-06 (commencement of operations) to 8-31-07.

68 Lifecycle Portfolios | Annual report

Lifecycle 2020 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		346,873		$	3,614,886			142,559		$	1,542,872
Distributions reinvested		4,411			46,760			173			1,775
Repurchased		(45,096	)		(464,080	)		(4,755	)		(51,607	)
Net increase		306,188		$	3,197,566			137,977		$	1,493,040
Class B shares
Sold		101,666		$	1,062,506			57,441		$	611,012
Distributions reinvested		1,050			11,135			161			1,655
Repurchased		(26,115	)		(267,174	)		(1,092	)		(11,726	)
Net increase		76,601		$	806,467			56,510		$	600,941
Class C shares
Sold		79,442		$	833,142			56,913		$	602,495
Distributions reinvested		837			8,877			161			1,655
Repurchased		(19,431	)		(201,977	)		(2	)		(21	)
Net increase		60,848		$	640,042			57,072		$	604,129
Class R shares
Sold		20,925		$	221,867			10,928		$	110,016
Distributions reinvested		383			4,053			161			1,647
Repurchased		(10,349	)		(103,704	)		(2	)		(21	)
Net increase (decrease)		10,959		$	122,216			11,087		$	111,642
Class R1 shares
Sold		30,910		$	311,811			10,000		$	100,000
Distributions reinvested		205			2,165			165			1,690
Repurchased		(15,236	)		(146,814	)		—			—
Net increase		15,879		$	167,162			10,165		$	101,690
Class R2 shares
Sold		156,560		$	1,552,843			19,640		$	202,008
Distributions reinvested		418			4,418			169			1,732
Repurchased		(18,955	)		(192,751	)		(3	)		(37	)
Net increase		138,023		$	1,364,510			19,806		$	203,703
Class R3 shares
Sold		102,114		$	1,086,512			11,529		$	116,807
Distributions reinvested		1,002			10,614			167			1,707
Repurchased		(28,981	)		(303,910	)		(2	)		(22	)
Net increase		74,135		$	793,216			11,694		$	118,492
Class R4 shares
Sold		4,387		$	44,331			10,002		$	100,021
Distributions reinvested		230			2,435			172			1,758
Repurchased		(439	)		(4,410	)		(2	)		(22	)
Net increase		4,178		$	42,356			10,172		$	101,757
Class R5 shares
Sold		64,772		$	632,997			24,951		$	257,900
Distributions reinvested		378			4,002			177			1,809
Repurchased		(11,818	)		(123,740	)		—			—
Net increase		53,332		$	513,259			25,128		$	259,709
Class 1 shares
Sold		22,479,297		$	232,024,606			6,122,505		$	66,015,343
Distributions reinvested		268,281			2,841,099			4,746			48,643
Repurchased		(164,608	)		(1,816,093	)		(131,757	)		(1,382,850	)
Net increase		22,582,970		$	233,049,612			5,995,494		$	64,681,136
Net increase		23,323,113		$	240,696,406			6,335,105		$	68,276,239

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

Annual report | Lifecycle Portfolios 69

Lifecycle 2015 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		256,050		$	2,615,937			78,279		$	826,395
Distributions reinvested		2,745			28,683			176			1,794
Repurchased		(49,748	)		(505,001	)		(11	)		(114	)
Net increase		209,047		$	2,139,619			78,444		$	828,075
Class B shares
Sold		69,878		$	711,535			43,663		$	461,767
Distributions reinvested		783			8,177			164			1,674
Repurchased		(19,999	)		(206,216	)		(589	)		(6,260	)
Net increase		50,662		$	513,496			43,238		$	457,181
Class C shares
Sold		72,676		$	739,069			24,475		$	255,866
Distributions reinvested		452			4,728			164			1,674
Repurchased		(18,472	)		(192,134	)		(2	)		(22	)
Net increase		54,656		$	551,663			24,637		$	257,518
Class R shares
Sold		7,380		$	75,071			10,245		$	102,635
Distributions reinvested		222			2,314			163			1,666
Repurchased		(383	)		(3,724	)		—			—
Net increase (decrease)		7,219		$	73,661			10,408		$	104,301
Class R1 shares
Sold		21,618		$	223,188			10,006		$	100,060
Distributions reinvested		391			4,081			167			1,708
Repurchased		(10,670	)		(102,139	)		—			—
Net increase		11,339		$	125,130			10,173		$	101,768
Class R2 shares
Sold		121,562		$	1,195,474			15,897		$	162,466
Distributions reinvested		510			5,315			171			1,751
Repurchased		(12,505	)		(124,199	)		(909	)		(9,417	)
Net increase		109,567		$	1,076,590			15,159		$	154,800
Class R3 shares
Sold		71,912		$	731,743			10,000		$	100,000
Distributions reinvested		321			3,353			169			1,725
Repurchased		(10,414	)		(99,769	)		—			—
Net increase		61,819		$	635,327			10,169		$	101,725
Class R4 shares
Sold		8,080		$	80,771			10,000		$	100,000
Distributions reinvested		261			2,726			174			1,777
Repurchased		(706	)		(7,076	)		—			—
Net increase		7,635		$	76,421			10,174		$	101,777
Class R5 shares
Sold		61,469		$	625,889			10,000		$	100,000
Distributions reinvested		288			3,004			179			1,828
Repurchased		(23,994	)		(240,340	)		—			—
Net increase		37,763		$	388,553			10,179		$	101,828
Class 1 shares
Sold		17,158,243		$	176,378,050			5,361,809		$	57,250,879
Distributions reinvested		254,558			2,660,134			2,570			26,262
Repurchased		(251,331	)		(2,535,009	)		(146,622	)		(1,540,356	)
Net increase		17,161,470		$	176,503,175			5,217,757		$	55,736,785
Net increase		17,711,177		$	182,083,635			5,430,338		$	57,945,758

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

70 Lifecycle Portfolios | Annual report

Lifecycle 2010 Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		206,150		$	2,112,391			92,090		$	965,714
Distributions reinvested		2,495			25,819			151			1,540
Repurchased		(60,209	)		(603,338	)		(29,153	)		(309,869	)
Net increase		148,436		$	1,534,872			63,088		$	657,385
Class B shares
Sold		23,018		$	235,563			12,327		$	124,735
Distributions reinvested		280			2,904			139			1,421
Repurchased		(12,596	)		(126,151	)		(2	)		(21	)
Net increase		10,702		$	112,316			12,464		$	126,135
Class C shares
Sold		100,254		$	1,040,588			39,409		$	405,423
Distributions reinvested		1,147			11,884			139			1,421
Repurchased		(38,965	)		(403,306	)		(2	)		(22	)
Net increase		62,436		$	649,166			39,546		$	406,822
Class R shares
Sold		174		$	1,776			10,000		$	100,000
Distributions reinvested		211			2,182			139			1,413
Repurchased		—			—			—			—
Net increase (decrease)		385		$	3,958			10,139		$	101,413
Class R1 shares
Sold		2,725		$	27,217			10,000		$	100,000
Distributions reinvested		238			2,456			143			1,455
Repurchased		(25	)		(258	)		—			—
Net increase		2,938		$	29,415			10,143		$	101,455
Class R2 shares
Sold		311,738		$	3,064,593			10,000		$	100,000
Distributions reinvested		264			2,730			147			1,498
Repurchased		(87,280	)		(881,776	)		—			—
Net increase		224,722		$	2,185,547			10,147		$	101,498
Class R3 shares
Sold		97,370		$	1,016,704			10,027		$	100,273
Distributions reinvested		1,055			10,914			144			1,473
Repurchased		(26,359	)		(266,281	)		—			—
Net increase		72,066		$	761,337			10,171		$	101,746
Class R4 shares
Sold		16,708		$	166,308			10,000		$	100,000
Distributions reinvested		264			2,730			149			1,523
Repurchased		(5,964	)		(57,706	)		—			—
Net increase		11,008		$	111,332			10,149		$	101,523
Class R5 shares
Sold		57,081		$	557,654			10,000		$	100,000
Distributions reinvested		290			3,005			154			1,574
Repurchased		(16,191	)		(158,353	)		—			—
Net increase		41,180		$	402,306			10,154		$	101,574
Class 1 shares
Sold		10,300,472		$	105,648,006			2,520,127		$	26,611,731
Distributions reinvested		147,202			1,523,542			965			9,843
Repurchased		(368,067	)		(3,737,100	)		(115,877	)		(1,235,555	)
Net increase		10,079,607		$	103,434,448			2,405,215		$	25,386,019
Net increase		10,653,480		$	109,224,697			2,581,216		$	27,185,570

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

Annual report | Lifecycle Portfolios 71

Lifecycle Retirement Portfolio

	Shares			Year ended 8-31-08 Amount			Shares			Period ended 8-31-07 Amount		1
Class A shares
Sold		823,146		$	8,271,824			426,231		$	4,425,214
Distributions reinvested		26,078			261,289			1,672			17,355
Repurchased		(141,454	)		(1,376,430	)		(14,393	)		(150,201	)
Net increase		707,770		$	7,156,683			413,510		$	4,292,368
Class B shares
Sold		27,292		$	280,517			38,650		$	399,558
Distributions reinvested		1,270			12,810			313			3,206
Repurchased		(20,551	)		(201,914	)		(1,449	)		(15,078	)
Net increase		8,011		$	91,413			37,514		$	387,686
Class C shares
Sold		665,373		$	6,704,880			133,397		$	1,381,684
Distributions reinvested		11,420			114,105			456			4,700
Repurchased		(135,683	)		(1,322,073	)		(2,165	)		(22,143	)
Net increase		541,110		$	5,496,912			131,688		$	1,364,241
Class R shares
Sold		4,734		$	45,493			10,002		$	100,020
Distributions reinvested		394			3,963			238			2,426
Repurchased		(4,741	)		(45,064	)		(2	)		(20	)
Net increase (decrease)		387		$	4,392			10,238		$	102,426
Class R1 shares
Sold		115		$	1,135			10,002		$	100,020
Distributions reinvested		404			4,064			255			2,601
Repurchased		—			—			(2	)		(20	)
Net increase		519		$	5,199			10,255		$	102,601
Class R2 shares
Sold		10,844		$	108,356			10,360		$	103,687
Distributions reinvested		531			5,321			272			2,777
Repurchased		(5,468	)		(52,471	)		(1	)		(14	)
Net increase		5,907		$	61,206			10,631		$	106,450
Class R3 shares
Sold		9,187		$	95,388			10,007		$	100,073
Distributions reinvested		674			6,767			259			2,645
Repurchased		(684	)		(6,788	)		(2	)		(21	)
Net increase		9,177		$	95,367			10,264		$	102,697
Class R4 shares
Sold		97		$	946			10,002		$	100,020
Distributions reinvested		440			4,426			278			2,843
Repurchased		—			—			(2	)		(21	)
Net increase		537		$	5,372			10,278		$	102,842
Class R5 shares
Sold		980		$	9,618			10,002		$	100,020
Distributions reinvested		474			4,769			298			3,040
Repurchased		(1	)		(8	)		(2	)		(21	)
Net increase		1,453		$	14,379			10,298		$	103,039
Class 1 shares
Sold		22,765,338		$	228,178,574			7,847,983		$	80,813,062
Distributions reinvested		565,986			5,643,203			54,521			563,991
Repurchased		(7,198,772	)		(71,496,368	)		(1,541,863	)		(15,951,117	)
Net increase		16,132,552		$	162,325,409			6,360,641		$	65,425,936
Net increase		17,407,423		$	175,256,332			7,005,317		$	72,090,286

¹ Period from 10-30-06 (commencement of operations) to 8-31-07.

72 Lifecycle Portfolios | Annual report

8. Purchases and sales of securities

The following summarizes the Portfolios’ purchases and sales of the affiliated and unaffiliated underlying funds for the year ended August 31, 2008:

	Purchases			Sales and Maturities
Portfolio	U.S. Government	Other Issuers		U.S. Government	Other Issuers
Lifecycle 2045	—	$	96,134,388	—	$	9,945,437
Lifecycle 2040	—		112,315,925	—		11,529,931
Lifecycle 2035	—		157,485,206	—		14,863,856
Lifecycle 2030	—		211,886,773	—		14,060,967
Lifecycle 2025	—		264,877,062	—		16,957,704
Lifecycle 2020	—		262,473,426	—		18,124,090
Lifecycle 2015	—		200,156,586	—		14,860,078
Lifecycle 2010	—		122,325,229	—		11,165,401
Lifecycle Retirement	—		258,604,955	—		89,047,328

9. Investment in affiliated underlying funds

The Portfolios invest primarily in affiliated underlying funds that are managed by affiliates of the Adviser. The Portfolios do not invest in affiliated underlying funds for the purpose of exercising management or control; however, the Portfolios’ investments may represent a significant portion of each underlying funds’ net assets. As of August 31, 2008, the following Portfolios held 5% or more of the underlying funds’ net assets:

Portfolio	Affiliate—Class NAV	Percent of Underlying Funds’ Net Assets
Lifecycle 2045	Value	7.99%
Lifecycle 2040	Emerging Small Company	5.43%
	Value	9.18%
Lifecycle 2035	Emerging Small Company	7.76%
	Value	13.06%
Lifecycle 2030	Emerging Small Company	10.64%
	Index 500	5.19%
	International Equity Index	5.09%
	Value	17.94%
Lifecycle 2025	Emerging Small Company	11.54%
	Index 500	6.88%
	International Equity Index	6.45%
	Total Bond Market	9.89%
	Value	11.37%
Lifecycle 2020	Emerging Small Company	7.64%
	Index 500	7.08%
	International Equity Index	5.82%
	Total Bond Market	9.66%
	Value	11.21%
Lifecycle 2015	Index 500	5.20%
	Total Bond Market	18.83%
	Value	8.76%
Lifecycle 2010	Total Bond Market	21.59%
Lifecycle Retirement	Total Bond Market	15.90%

Annual report | Lifecycle Portfolios 73

Auditors report

Report of Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP

To the Board of Trustees and Shareholders of John Hancock Funds II,

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Funds (identified in Note 1) which are part of John Hancock Funds II (the “Trust”) at August 31, 2008, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2008 by correspondence with the custodian, transfer agent, and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 30, 2008

74 Lifecycle Portfolios | Annual report

Tax information

Unaudited

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolios, if any, paid during its taxable year ended August 31, 2008.

Long Term Capital Gains The Portfolios below have designated the following amounts as capital gain dividends paid during the year.

Portfolio	Capital Gain
Lifecycle 2045	$	64,011
Lifecycle 2040		72,022
Lifecycle 2035		45,027
Lifecycle 2030		—
Lifecycle 2025		—
Lifecycle 2020		—
Lifecycle 2015		—
Lifecycle 2010		—
Lifecycle Retirement		108,827

Dividend Received Deduction Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Portfolio’s dividend distribution that qualifies under tax law. The percentage of the Portfolio’s fiscal 2008 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.

Portfolio	Dividend Received Deduction
Lifecycle 2045		32.25	%
Lifecycle 2040		31.87
Lifecycle 2035		31.05
Lifecycle 2030		27.64
Lifecycle 2025		22.34
Lifecycle 2020		18.05
Lifecycle 2015		13.51
Lifecycle 2010		13.90
Lifecycle Retirement		9.26

Qualified Dividend Income The Portfolio hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2008.

Shareholders will be mailed a 2008 U.S. Treasury Department Form 1099-DIV in January 2009. This will reflect the total of all distributions that are taxable for the calendar year 2008.

Annual report | Lifecycle Portfolios 75

EVALUATION OF ADVISORY AND SUBADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES

This section describes the evaluation by the Board of Trustees of the Advisory Agreement (the “Advisory Agreement”) and each of the Subadvisory Agreements and the Sub-Subadvisory Agreements (collectively, the “Subadvisory Agreements”) for each of the portfolios (the “Funds”) of John Hancock Funds II (the “Trust”) discussed in this annual report.

EVALUATION BY THE BOARD OF TRUSTEES

The Board, including the Independent Trustees, is responsible for selecting the Trust’s adviser, John Hancock Investment Management Services, LLC (the “Adviser” or “JHIMS”), approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust and approving the Trust’s advisory and subadvisory (and any sub-subadvisory) agreements, their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 are:

1.	the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;
2.	the investment performance of the Funds and their subadvisers;
3.	the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;
4.	the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and
5.	comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any sub-subadvisory agreements) with subadvisers not affiliated with the Adviser, the Board believes that, in view of the Trust’s “manager-of-managers” advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds and the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

APPROVAL OF ADVISORY AGREEMENT

At its meeting on May 30, 2008, the Board, including all the Independent Trustees, approved the Advisory Agreement.

In approving the renewal of the Advisory Agreement, and with reference to the factors that it regularly considers, the Board:

(1)	(a) considered the high value to the Trust of continuing its relationship with JHIMS as the Trust’s adviser, the skills and competency with which JHIMS has in the past managed the Trust’s affairs and its subadvisory relationships, JHIMS’s oversight and monitoring of the subadvisers’ investment performance and compliance programs, including its timeliness in responding to performance issues and the qualifications of JHIMS’s personnel,
	(b) considered JHIMS’s compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments, and
	(c) considered JHIMS’s administrative capabilities, including its ability to supervise the other service providers for the Funds and concluded that JHIMS may reasonably be expected to continue to perform its services under the Advisory Agreement with respect to the Funds;
(2)	reviewed the investment performance of each of the Funds; the comparative performance of their respective benchmarks, comparable funds as included in a report prepared by an independent third party (i.e., funds having approximately the same investment objective), if any; and JHIMS’s analysis of such performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally and with respect to particular Funds; and concluded that each of the Funds has generally performed well or within a range that the Board deemed competitive except as discussed in Appendix A and in such cases, that appropriate action is being taken to address performance, if necessary, or that such performance is reasonable in light of all factors considered, and that JHIMS may reasonably be expected to continue ably to monitor the performance of the Funds and each of their subadvisers;
(3)	(a) reviewed the advisory and other fee waivers and expense reimbursements with respect to certain of the Funds,
	(b) reviewed the Trust’s advisory fee structure and the incorporation therein of any subadvisory fee breakpoints in the advisory fees charged and concluded (i) that to

76 Lifecycle Portfolios | Annual report

	the extent that Funds have subadvisory fees with breakpoints, those breakpoints are reflected as breakpoints in the advisory fees for Funds, (ii) that all Funds with a subadviser that is not affiliated with the Adviser have subadvisory fees which are the product of arm’s-length negotiations between the Adviser and the subadviser and which in many, but not all, cases contain breakpoints, and (iii) that, although economies of scale cannot be measured with precision, these arrangements permit shareholders of Funds with advisory fee breakpoints to benefit from economies of scale if those Funds grow;
(4)	(a) reviewed the financial statements of JHIMS and considered (i) an analysis presented by JHIMS regarding the net profitability to JHIMS of each Fund,
	(b) reviewed and considered an analysis presented by JHIMS regarding the profitability of the JHIMS’s relationship with each Fund and whether JHIMS has the financial ability to continue to provide a high level of services to the Fund,
	(c) considered that in the case of Class 1 shares the John Hancock insurance companies that are affiliates of JHIMS, as shareholders of Class 1 shares of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain Funds of the Trust and noted that these tax benefits, which are not available to contract owners under applicable income tax law, are reflected in the profitability analysis reviewed by the Board.
	(d) considered that JHIMS derives reputational and other indirect benefits from providing advisory services to the Funds, and
	(e) noted that JHIMS pays the subadvisory fees out of the advisory fees JHIMS receives from the Funds and concluded that the advisory fees paid by the Trust with respect to the Funds are not unreasonable in light of such information;
	(f) considered that the Adviser should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to each Fund and the entrepreneurial risk that it assumes as Adviser. Based upon its review, the Board concluded that the Advisor and its affiliates’ level of profitability, if any, from their relationship with each Fund was reasonable and not excessive.
(5)	reviewed comparative information with respect to the advisory fee rates and concluded that the Trust’s advisory fees are generally within a competitive range of those incurred by other comparable funds. In this regard, the Board took into account management’s discussion with respect to the advisory fee structure. The Board also noted that JHIMS is currently waiving fees and/ or reimbursing expenses with respect to certain of the Funds and that the Adviser pays the subadvisory fees of the Funds. The Board also took into account the level and quality of services provided by JHIMS with respect to the Funds, as well as the other factors considered.

In addition, in the case of each Lifecycle Fund (each a “Fund of Funds”), the Trustees reviewed the advisory fee to be paid to the Adviser for each Fund of Funds and concluded that the advisory fee to be paid to the Adviser with respect to each Fund of Funds 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 portfolios of the Fund of Funds and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund of Funds and those of its underlying portfolios.

Additional information that the Board considered in approving the Advisory Agreement is set forth in Appendix A.

APPROVAL OF SUBADVISORY AGREEMENTS

At its meeting on May 30, 2008, the Board, including all the Independent Trustees, renewed and approved the Subadvisory Agreements.

In making its determination with respect to the factors that it considers, the Board reviewed:

(1)	information relating to each subadviser’s business, which may include information such as: business performance, assets under management and personnel;
(2)	the historical and current performance of the Fund and comparative performance information relating to the Fund’s benchmark and comparable funds;
(3)	the subadvisory fee for each Fund and comparative fee information provided by an independent third party; and
(4)	information relating to the nature and scope of Material Relationships and their significance to the Trust’s adviser and unaffiliated subadvisers.

The Board noted that in the case of each sub-subadvisory agreement, that the sub-subadvisory fee would be paid by the subadviser out of the subadvisory fee and would not be an expense of the Fund.

The Board’s decision to approve each Subadvisory Agreement was based on a number of determinations, including the following:

(1)

The subadviser has extensive experience and demonstrated skills as a manager;

(2)

Although not without variation, the current and historical performance of each Fund managed by a subadviser has generally been in line with or outperformed the current and historical performance of comparable funds and the Fund’s respective benchmarks with the exceptions noted in Appendix A (with respect to such exceptions, the Board concluded that appropriate action was being taken to address such

Annual report | Lifecycle Portfolios 77

	Funds’ performance, if necessary, or that performance was reasonable in light of all factors considered);
(3)	The subadvisory fees are generally competitive within the range of industry norms and, with respect to each subadviser that is not affiliated with the Adviser, are a product of arm’s-length negotiation between the Adviser and the subadviser;
(4)	With respect to those Funds that have subadvisory fees that contain breakpoints, such breakpoints are reflected as breakpoints in the advisory fees for the Funds in order to permit shareholders to benefit from economies of scale if those Funds grow; and
(5)	The Material Relationships consist of arrangements in which unaffiliated subadvisers or their affiliates provide advisory, distribution or management services in connection with financial products sponsored by the Trust’s adviser or its affiliates, which may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans, and which in no case contained elements which would cause the Board to conclude that approval of the subadvisory agreement with the subadviser would be inappropriate.

In addition, in the case of each Fund of Funds, the Trustees reviewed the subadvisory fee to be paid to the subadviser for each Fund of Funds and concluded that the subadvisory fee to be paid to the subadviser with respect to each Fund of Funds is based on services provided that are in addition to, rather than duplicative of, the services provided pursuant to the subadvisory agreements for the underlying portfolios of the Fund of Funds and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund of Funds and those of its underlying portfolios.

Additional information that the Board considered for a particular Fund is set forth in Appendix A.

78 Lifecycle Portfolios | Annual report

John Hancock Funds II
Appendix A

Fund (Subadviser)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Lifecycle 2010 (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s performance.
Lifecycle 2015 (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s expenses.
Lifecycle 2020 (MFC Global Investment Management (U.S.A.) Limited)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s expenses.

Annual report | Lifecycle Portfolios 79

Appendix A (continued)

Fund (Subadviser)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Lifecycle 2025 (MFC Global Investment Management (U.S.A.) Limited)	The Fund outperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted management’s discussion of the Fund’s expenses, including the advisory/ subadvisory fee structure. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board noted management’s discussion of the Fund’s performance, including the peer group in which the Fund was placed.
Lifecycle 2030 (MFC Global Investment Management (U.S.A.) Limited)	The Fund outperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted management’s discussion of the Fund’s expenses. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Lifecycle 2035 (MFC Global Investment Management (U.S.A.) Limited)	The Fund outperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted management’s discussion of the Fund’s expenses. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.

80 Lifecycle Portfolios | Annual report

Appendix A (continued)

Fund (Subadviser)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Lifecycle 2040 (MFC Global Investment Management (U.S.A.) Limited)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board noted management’s discussion of the Fund’s expenses. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Lifecycle 2045 (MFC Global Investment Management (U.S.A.) Limited)	The Fund outperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are higher than the peer group median.	The Board noted management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Lifecycle Retirement (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are higher than the peer group median.	The Board noted management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure. The Board also noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.

Annual report | Lifecycle Portfolios 81

Trustees and Officers

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

Independent Trustees
Name, age Position(s) held with Portfolio Principal occupation(s) and other directorships during past 5 years	Trustee of Portfolio since1	Number of John Hancock funds overseen by Trustee
Charles L. Bardelis,2 Born: 1941	2005	212
Director, Island Commuter Corp. (Marine Transport). Trustee of John Hancock Trust (since 1988) and former Trustee of John Hancock Funds III (2005-2006).
Peter S. Burgess,2 Born: 1942	2005	212
Consultant (financial, accounting and auditing matters (since 1999); Certified Public Accountant. Director of the following publicly traded companies: PMA Capital Corporation (since 2004) and Lincoln Educational Services Corporation (since 2004). Trustee of John Hancock Trust (since 2005), and former Trustee of John Hancock Funds III (2005-2006).
Elizabeth G. Cook, 3 Born: 1937	2005	212
Expressive Arts Therapist, Massachusetts General Hospital (September 2001 to June 2007); Expressive Arts Therapist, Dana Farber Cancer Institute (September 2000 to January 2004); Trustee of John Hancock Trust (since 2005) and former Trustee of John Hancock Funds III (2005-2006).
Theron S. Hoffman,6 Born: 1937	2008	212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, T. Hoffman Associates, LLC (2003–Present); Director, The Todd Organization (2003–Present); President, Westport Resources Management (2006–2008); Partner / Operating Head & Senior Managing Director, Putnam Investments (2000–2003).
Hassell H. McClellan,3 Born: 1945	2005	212
Associate Professor, The Graduate School of The Wallace E. Carroll School of Management, Boston College. Trustee of John Hancock Trust (since 2005), former Trustee of John Hancock Funds III (2005–2006) and Trustee of Phoenix Edge Series Fund (since 2008).
James. M. Oates,2 Born: 1946	2005	212
Managing Director, Wydown Group (financial consulting firm) (since 1994); Chairman, Emerson Investment Management, Inc. (since 2000); Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997–2006). Director of the following publicly traded companies: Stifel Financial (since 1996); Investor Financial Services Corporation (1995–2007); Investors Bank and Trust (since 1995) and Connecticut River Bancorp, Director (since 1998). Trustee of John Hancock Funds II (since 2005); and Former Trustee of John Hancock Funds III (2005–2006); Director, Phoenix Mutual Funds (since 1998).

82 Lifecycle Portfolios | Annual report

Independent Trustees — continued

Name, age Position(s) held with Portfolio Principal occupation(s) and other directorships during past 5 years	Trustee of Portfolio since1	Number of John Hancock funds overseen by Trustee
Steven M. Roberts,6 Born: 1944	2008	212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Deputy Director, Board of Governors of the Federal Reserve System (2005–2008); Principal, KPMG (1987–2004).
Trustee Emeritus
John D. Richardson,4,5 “Trustee Emeritus” Born: 1938	2006	212
Former Trustee of JHT (Retired, December 14, 2006). Former Senior Executive Vice President, Office of the President, MFC, February 2000 to March 2002 (Retired, March, 2002); Executive Vice President and General Manager, U.S. Operations, Manulife Financial, January 1995 to January 2000.

1	Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his/her successor is duly elected and qualified or until he/she dies, retires, resigns, is removed or becomes disqualified.
2	Member of Audit Committee.
3	Member of Compliance Committee.
4	Prior to 1997, Mr. Richardson was a Trustee of Manulife Series Fund, Inc., which merged into JHT on December 31, 1996.
5	Mr. Richardson retired as Trustee of JHT effective December 14, 2006. On such date, Mr. Richardson became a non-voting Trustee Emeritus.
6	Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

Non-Independent Trustees^1,2

Name, age Position(s) held with Portfolio Principal occupation(s) and other directorships during past 5 years	Trustee of Portfolio since1	Number of John Hancock funds overseen by Trustee
James R. Boyle,3 Born: 1959	2005	267
Executive Vice President, Manulife Financial Corporation (since 1999); Director and President, John Hancock Variable Life Insurance Company (since 2007); Director and Executive Vice President, John Hancock Life Insurance Company (since 2004); Chairman and Director, John Hancock Advisers, LLC (the Adviser), John Hancock Funds, LLC (John Hancock Funds) and The Berkeley Financial Group, LLC (The Berkeley Group) (holding company) (since 2005); Chairman and Director, John Hancock Investment Management Services, LLC (since 2006); Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (until 2004).
Grace K. Fey,4,5 Born: 1946	2008	212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, Grace Fey Advisors (2007 – Present); Director & Executive Vice President, Frontier Capital Management Company (1988 – 2007).

1	Because the Trust does not hold regular annual shareholders meetings, each Trustee holds office for an indefinite term until his successor is duly elected and qualified or until he dies, retires, resigns, is removed or becomes disqualified.
2	Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
3	Mr. Boyle is an “interested person” (as defined in the 1940 Act) due to his prior position with Manulife Financial Corporation (or its affiliates), the ultimate controlling parent of the Adviser.
4	Ms. Fey was appointed by the Board as Trustee on September 26, 2008.
5	Ms. Fey is an interested person as defined by the 1940 Act due to a deferred compensation arrangement with her former employer, Frontier Capital Management Company, which is a sub-adviser of certain funds of John Hancock Funds II and John Hancock Trust.

Annual report | Lifecycle Portfolios 83

Principal officers who are not Trustees
Name, age Position(s) held with Portfolio Principal occupation(s) and directorships during past 5 years	Officer of Portfolio since
Keith F. Hartstein1, Born: 1956	2005
President and Chief Executive Officer
Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser, The Berkeley Group, John Hancock Funds, LLC (since 2005); Director, MFC Global Investment Management (U.S.), LLC (“MFC Global (U.S.)”) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock Investment Management Services, LLC (since 2006); President and Chief Executive Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust,; Director, Chairman and President, NM Capital Management, Inc. (since 2005); Chairman, Investment Company Institute Sales Force Marketing Committee; Director, President and Chief Executive Officer, MFC Global (U.S.) (2005-2006); Executive Vice President, John Hancock Funds, LLC (until 2005).
John G. Vrysen1, Born: 1955	2007
Chief Operating Officer
Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC since June 2007; Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust since June 2007; Director, Executive Vice President, and Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (until June 2007); Executive Vice President and Chief Financial Officer, John Hancock Investment Management Services, LLC (since 2005), Vice President and Chief Financial Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust (2005-June 2007); Vice President and General Manager, Fixed Annuities, U.S. Wealth Management (until 2005); Vice President, Operations Manulife Wood Logan (2000-2004).
Charles A. Rizzo1, Born: 1957	2007
Chief Financial Officer
Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (June 2007-Present); Assistant Treasurer, Goldman Sachs Mutual Fund Complex (registered investment companies) (2005-June 2007); Vice President, Goldman Sachs (2005-June 2007); Managing Director and Treasurer of Scudder Funds, Deutsche Asset Management (2003-2005); Director, Tax and Financial Reporting, Deutsche Asset Management (2002-2003).
Francis V. Knox, Jr.1, Born: 1947	2005
Chief Compliance Officer
Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004.
Gordon M. Shone1, Born: 1956	2005
Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003-2005); Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President, John Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC (since 2006).
Thomas M. Kinzler1, Born: 1955	2006
Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006); Vice President and Associate General Counsel for Massachusetts Mutual Life Insurance Company (1999-2006); Secretary and Chief Legal Counsel for MML Series Investment Fund (2000-2006); Secretary and Chief Legal Counsel for MassMutual Institutional Funds (2000-2004); Secretary and Chief Legal Counsel for MassMutual Select Funds and MassMutual Premier Funds (2004-2006).

¹ Affiliated with the investment adviser.

84 Lifecycle Portfolios | Annual report

More information

Trustees

James R. Boyle†
Grace K. Fey†
Charles L. Bardelis*
Peter S. Burgess*
Elizabeth G. Cook**
Theron S. Hoffman
Hassell H. McClellan**
James M. Oates*
John D. Richardson, Trustee Emeritus
Steven M. Roberts
  *Members of the Audit Committee
**Members of the Compliance Committee
†Non-Independent Trustees

Officers

Keith F. Hartstein
President and Chief Executive Officer
Thomas M. Kinzler
Secretary and Chief Legal Officer
Francis V. Knox, Jr.
Chief Compliance Officer
Charles A. Rizzo
Chief Financial Officer
Gordon M. Shone
Treasurer
John G. Vrysen
Chief Operating Officer

Investment adviser

John Hancock Investment Management Services, LLC

Investment Subadviser

MFC Global Investment Management (U.S.A.) Limited

Principal distributor

John Hancock Funds, LLC

Custodian

State Street Bank & Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

Independent registered
public accounting firm

PricewaterhouseCoopers LLP

Additional information about your fund is available without charge in several ways. As required by the SEC, you can access proxy voting information and quarterly portfolio information on your fund. The proxy voting information includes a description of proxy voting policies, procedures and information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30. The quarterly portfolio information that includes a complete list of the fund’s holdings for the first and third quarters of the fund’s fiscal period is filed on Form N-Q. You have access to this information:

By phone

1-800-225-5291

On the fund’s Website

www.jhfunds.com

At the SEC

www.sec.gov

1-800-SEC-0330

SEC Public Reference Room

You can also contact us:

Regular mail

John Hancock Signature Services, Inc.

P.O. Box 9510

Portsmouth, NH 03802-9510

Express mail

John Hancock Signature Services, Inc.

Mutual Fund Image Operations

164 Corporate Drive

Portsmouth, NH 03801

Month-end portfolio holdings are available at www.jhfunds.com.

Lifecycle Portfolios | Annual report 85

Why John Hancock Funds?

For more than three decades, John Hancock Funds has been helping individual, corporate and institutional clients reach their most important financial goals. With so many fund companies to choose from, why should you invest with us?

A name you know and trust

When you invest with John Hancock Funds, you are investing with one of the most recognized and respected names in the financial services industry. Our parent company has been helping individuals and institutions increase and protect wealth since 1862.

Solutions across the investing spectrum

We offer equity, income, international, sector and asset allocation investment solutions managed by leading institutional money managers. Each of our funds utilizes a disciplined, team approach to portfolio management and research, leveraging the expertise of seasoned investment professionals.

Committed to you

Our shareholders come first. We work hard to provide you with the products you need to build a solid financial foundation. We’re proud to offer you award-winning services and tools, like the www.jhfunds.com Web site, to help you every step of the way.

Not part of the annual report

For immediate insight and answers,
     turn to www.jhfunds.com

Discover the new and improved www.jhfunds.com.

§	View accounts, statements and fund information.
§	Access college and retirement planning calculators and investment education.
§	Gain investment ideas, expand your knowledge and become a more informed investor.

This is just the beginning of how much you can do.

Now is the ideal time to experience our Web site that received the following recognition in 2006:

	“Best Innovation: Redesigned Web Site” by the Mutual Fund Education Alliance.
	“Outstanding Web Site” by the Web Marketing Association.
	“Creative excellence on the Web, Silver Award winner” by W3.

Discover convenience and comprehensive resources at one easy-to-access location. Your financial professional can steer you to the tools that will help you the most and enable you to transform your knowledge into action.

See how far www.jhfunds.com can take you!

Not part of the annual report

At the heart of John Hancock Funds is
AWARD-WINNING SERVICE

How our exceptional customer service can benefit you:

1	We’re committed to providing you with answers, solving problems and saving you time.
2	We’re ready to go one step farther by offering a range of resources so you can build your knowledge and expand your skills.
3	We’re determined to regularly exceed your expectations.

Experience award-winning, world-class service.
Consider the recognition that we received in 2006.
§	John Hancock Signature Services, Inc. (JHSS) is the transfer and shareholder services agent for John Hancock Funds. JHSS was awarded “Best-In-Class” honors and “5-Star” performer status for telephone customer service for all of 2006 from the National Quality Review.
§	Winner of Source Media’s Fund Operations Awards in the category of Efficiencies/Streamlining.
§	One of four finalists for Best Customer Service Organization, Financial Services at The American Business Awards, “The Stevies.”™

Let us demonstrate
the difference that
world-class service
can make.

Call our customer service representatives at 1-800-225-5291
Monday to Friday 8:00 A.M.–7:00 P.M. ET

It will be our pleasure and privilege to help you.

Not part of the annual report

John Hancock Family of Funds

DOMESTIC EQUITY

Balanced Fund

Classic Value Fund

Classic Value Fund II

Classic Value Mega Cap Fund

Growth Opportunities Fund

Large Cap Equity Fund

Large Cap Select Fund

Mid Cap Equity Fund

Optimized Value Fund

Rainier Growth Fund

Small Cap Fund

Small Cap Equity Fund

Small Cap Intrinsic Value Fund

Sovereign Investors Fund

U.S. Core Fund

U.S. Global Leaders Growth Fund

Value Opportunities Fund

ASSET ALLOCATION

TARGET RISK

Lifestyle Aggressive Portfolio

Lifestyle Balanced Portfolio

Lifestyle Conservative Portfolio

Lifestyle Growth Portfolio

Lifestyle Moderate Portfolio

TARGET DATE

Lifecycle 2045 Portfolio

Lifecycle 2040 Portfolio

Lifecycle 2035 Portfolio

Lifecycle 2030 Portfolio

Lifecycle 2025 Portfolio

Lifecycle 2020 Portfolio

Lifecycle 2015 Portfolio

Lifecycle 2010 Portfolio

RETIREMENT INCOME

Lifecycle Retirement Portfolio

Retirement Distribution Portfolio

Retirement Rising Distribution Portfolio

GLOBAL/INTERNATIONAL EQUITY

Global Opportunities Fund

Global Shareholder Yield Fund

Greater China Opportunities Fund

International Allocation Portfolio

International Classic Value Fund

International Core Fund

International Growth Fund

SPECIALTY

Financial Industries Fund

Global Real Estate Fund

Health Sciences Fund

Regional Bank Fund

INCOME

Bond Fund

Floating Rate Income Fund

Government Income Fund

High Yield Fund

Investment Grade Bond Fund

Strategic Income Fund

TAX-FREE INCOME

California Tax-Free Income Fund

High Yield Municipal Bond Fund

Massachusetts Tax-Free Income Fund

New York Tax-Free Income Fund

Tax-Free Bond Fund

MONEY MARKET

Money Market Fund

CLOSED-END

Bank and Thrift Opportunity Fund

Income Securities Trust

Investors Trust

Patriot Premium Dividend Fund II

Preferred Income Fund

Preferred Income II Fund

Preferred Income III Fund

Tax-Advantaged Dividend Income Fund

Tax-Advantaged Global Shareholder Yield Fund

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

Not part of the annual report

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 Lifecycle Portfolios.
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	LC00A 8/08 10/08

John Hancock Funds II
President’s Message

To Our Shareholders

The financial markets battled a laundry list of ills and produced negative results in a volatile 12 months ended August 31, 2008. The worst U.S. housing slump since the Great Depression, combined with a subprime mortgage-induced credit crunch, an anemic economy bordering on recession and skyrocketing oil prices for much of the period, sent the markets tumbling into bear market territory in early July. For the year ended August 31, 2008, the Standard & Poor’s 500 Index returned –11.14%, led down by financial stocks, which were the most severely impacted by the credit crisis. The pain was felt in financial markets around the world, amid inflation fears and concerns about the spillover effects of the widening U.S. credit woes.

Bonds held up much better in the 12-month period, as the Federal Reserve Board cut interest rates seven times between September 2007 and April 2008 to help bolster the economy and made other efforts to provide liquidity to the credit markets. For the 12 months ended August 31, 2008, the Lehman Brothers U.S. Aggregate Index — a broad measure of bond market performance — returned 5.86%. It’s worth noting that the 10-year return for bonds, including Treasuries, has now eclipsed the 10-year return of stocks — a very rare occurrence. In every instance when this has happened in the past, stocks went on to outperform both bonds and Treasuries over the ensuing 10-year period. Of course, there’s no guarantee that that will occur this time.

Just weeks after the funds’ reporting period ended, volatility spiked even further, as the credit markets virtually ground to a halt amid investors’ growing concerns about the extent and duration of financial companies’ mortgage losses — and about their ability to carry on. The fears mounted in a period of extraordinary volatility starting in mid-September in response to the sale, bankruptcy, takeover or reorganization of numerous renowned financial institutions. Top among them was the U.S. government’s takeover of mortgage giants Fannie Mae and Freddie Mac and insurance giant AIG. In reaction, the Dow Jones Industrial Average experienced wild swings — up and down days of several hundred points a day.

Even a much-anticipated $700 billion rescue package approved in early October by the U.S. government to shore up the financial system and restore investor confidence did little to calm the markets. The contagion spread overseas, where markets worldwide plunged as European and other foreign governments began taking dramatic steps to bolster some of their ailing banks, and avoid a global recession.

Recent events, as trying as they have been, are a vivid example of the importance of keeping a long-term perspective and sticking to your investment goals. With negative sentiment abounding and the prospect for continued volatility quite real, the impulse to flee is understandable. But we urge you to stay the course and keep a well-diversified portfolio, along with a longer-term investment perspective. Leaving the market can mean missing out on the inevitable moves up. Working with your investment professional on your long-term plan is especially critical in turbulent times to avoid making emotional decisions.

Sincerely,

Keith F. Hartstein
President and Chief Executive Officer

This commentary reflects the CEO’s views as of October 21, 2008. They are subject to change at any time.

2

John Hancock Funds II
Annual Report — Table of Contents

Manager’s Commentary and Fund Performance (See below for each Fund’s page #) 4

Shareholder Expense Example 62

Portfolio of Investments (See below for each Fund’s page #) 68

Statements of Assets and Liabilities 353

Statements of Operations 370

Statements of Changes in Net Assets 385

Financial Highlights 395

Notes to Financial Statements 412

Report of Independent Registered Public Accounting Firm 467

Federal Tax Information 468

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees 470

Appendix A 473

Trustees and Officers Information 495

Fund	Manager’s Commentary & Fund Performance	Portfolio of Investments
Absolute Return Portfolio	5	68
Active Bond Fund	6	68
All Cap Core Fund	7	84
All Cap Growth Fund	8	87
All Cap Value Fund	9	89
American Diversified Growth & Income Fund	10	90
American Fundamental Holdings Fund	11	91
American Global Diversification Fund	12	91
Blue Chip Growth Fund	13	91
Capital Appreciation Fund	14	93
Core Bond Fund	15	95
Core Equity Fund	16	102
Emerging Growth Fund	17	103
Emerging Markets Value Fund	18	105
Emerging Small Company Fund	19	118
Equity-Income Fund	20	121
Fundamental Value Fund	21	123
Global Bond Fund	22	125
Global Real Estate Fund	23	136
High Income Fund	24	138
High Yield Fund	25	142
Index 500 Fund	26	151
International Equity Index Fund	27	158
International Opportunities Fund	28	176
International Small Cap Fund	29	178
International Small Company Fund	30	179
International Value Fund	31	209
Investment Quality Bond Fund	32	211
Large Cap Fund	33	221
Large Cap Value Fund	34	222
Mid Cap Index Fund	35	224
Mid Cap Intersection Fund	36	230
Mid Cap Stock Fund	37	232
Mid Cap Value Fund	38	234
Mid Cap Value Equity Fund	39	235
Natural Resources Fund	40	238
Optimized All Cap Fund	41	239
Real Estate Equity Fund	42	241
Real Estate Securities Fund	43	242
Real Return Bond Fund	44	242
Small Cap Fund	45	247
Small Cap Index Fund	46	248
Small Cap Opportunities Fund	47	266
Small Company Fund	48	269
Small Company Growth Fund	49	273
Small Company Value Fund	50	275
Spectrum Income Fund	51	278
Strategic Bond Fund	52	307
Strategic Income Fund	53	317
Total Bond Market Fund	54	323
Total Return Fund	55	326
U.S. Government Securities Fund	56	333
U.S. High Yield Bond Fund	57	336
U.S. Multi Sector Fund	58	343
Value Fund	59	347
Value & Restructuring Fund	60	348
Vista Fund	61	350

 

3

John Hancock Funds II
Manager’s Commentary and Fund Performance

Fund Performance

In the following pages we have set forth information regarding the performance of each Fund of the John Hancock Funds II (the “trust”). There are several ways to evaluate a Fund’s historical performance. One can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. With respect to all performance information presented, it is important to understand that past performance does not guarantee future results. Return and principal fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Performance Tables

The Performance Tables show two types of total return information: cumulative and average annual total returns. A cumulative total return is an expression of a Fund’s total change in share value in percentage terms over a set period of time — one, five and ten years (or since the Fund’s inception if less than the applicable period). An average annual total return takes the Fund’s cumulative total return for a time period greater than one year and shows what would have happened if the Fund had performed at a constant rate each year. The tables show all cumulative and average annual total returns, net of fees and expenses of the Trust, but do not reflect the insurance (separate account) expenses (including a possible contingent deferred sales charge) that invest in the Fund. If these were included, performance would be lower.

Graph — Change in Value of $10,000 Investment and Comparative Indices

The performance graph for each Fund shows the change in value of a $10,000 investment over the life or ten-year period of each Fund, whichever is shorter. Each Fund’s performance is compared with the performance of one or more broad-based securities indices as a “benchmark.” All performance information includes the reinvestment of dividends and capital gain distributions, as well as the deduction of ongoing management fees and Fund operating expenses. The benchmarks used for comparison are unmanaged and include reinvestment of dividends and capital gains distributions, if any, but do not reflect any fees or expenses. Funds that invest in multiple asset classes are compared with a customized benchmark. This benchmark is comprised of a set percentage allocation from each of the asset classes in which the Fund invests.

Portfolio Manager’s Commentary

Finally, we have provided a commentary by each portfolio manager regarding each Fund’s performance during the period ended August 31, 2008. The views expressed are those of the portfolio manager as of August 31, 2008, and are subject to change based on market and other conditions. Information about a Fund’s holdings, asset allocation or country diversification is historical and is no indication of future fund composition, which will vary. Information provided in this report should not be considered a recommendation to purchase or sell securities. The Funds are not insured by the FDIC, are not a deposit or other obligation of, or guaranteed by banks and are subject to investment risks including loss of principal amount invested. For a more detailed discussion of the risks associated with the Funds, see the Fund prospectus.

“Standard & Poor’s,” “Standard & Poor’s 500,” “S&P 500” and “S&P MidCap 400 Index” are trademarks of The McGraw-Hill Companies, Inc. “Russell 1000,” “Russell 2000,” “Russell 3000” and “Russell Midcap” are trademarks of Frank Russell Company. “Wilshire 5000” is a trademark of Wilshire Associates. “Morgan Stanley European Australian Far East Free”, “EAFE” and “MSCI” are trademarks of Morgan Stanley & Co. Incorporated. ”Lehman Brothers“ is a registered trademark of Lehman Brothers Inc. ”Lipper“ is a registered trademark of Reuters S.A. None of the Trusts are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the Trust.

4

Absolute Return Portfolio
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Manager: Jim Schetakis

INVESTMENT OBJECTIVE & POLICIES  •  To seek maximum real return, consistent with preservation of capital and prudent investment management.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
U.S. Large Cap	12.68
Intermediate Bond	11.75
Real Estate	10.33
Financial	10.29
Multi-Sector Bond	8.26
High Yield Bond	7.24
International Large Cap	6.27
Diversified	5.39
Emerging Markets	4.90
U.S. Mid Cap	4.75
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Absolute Return Class A returned –3.64%, underperforming the +12.34 % of the Lehman Brothers U.S. TIPS 1–10 Year Index and the +11.97% return of the CPI + 5% Index.

Market Environment  •  The Fund’s one-year performance was below its real-return objective. Domestic and international markets posted double-digit negative returns. Large-cap stocks continued to outperform small-caps, both domestically and internationally.

Fixed income investments posted positive returns for the year, with global issues marginally outperforming domestic. In the U.S., yields declined 30 basis points (0.30 percentage points) for 30-year Treasuries and about 75 basis points for the 10-year maturity. However, credit spreads continued to expand as the credit crisis deepened and kept financial firms under stress.

The Fund posted a loss for the year and missed its real-return objective. The superior performance of commodities, while helpful, had a muted effect as we began to underweight early in the year. While the portfolio’s asset mix was positive, the portfolio’s sub-advisors had below-benchmark performance in most asset classes.

PERFORMANCE TABLE1,4		Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008			1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Absolute Return Class A (began 6/26/06)			–3.64	%	—	—	4.09	%		–3.64	%	—	—	9.16	%
Absolute Return Class B (began 6/26/06)			–4.27	%	—	—	3.35	%		–4.27	%	—	—	7.48	%
Absolute Return Class C (began 6/26/06)			–4.27	%	—	—	3.35	%		–4.27	%	—	—	7.48	%
Absolute Return Class 1 (began 6/26/06)			–3.38	%	—	—	4.33	%		–3.38	%	—	—	9.72	%
Lehman Brothers U.S. TIPS 1-10 Year Index3,5,7	��		12.34	%	—	—	9.11	%		12.34	%	—	—	21.04	%
CPI +5% Index3,6,7			11.97	%	—	—	9.43	%		11.97	%	—	—	21.60	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since June 26, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Absolute Return Portfolio expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Lehman Brothers U.S. TIPS 1-10 Year Index is an unmanaged index which consists of Inflation-Protection securities issued by the U.S. Treasury. The stocks in this index must have at least one year to final maturity, have at least $250 million par amount outstanding and be rated investment-grade (Baa3/BBB– or higher) by at least two of the following ratings agencies: Moody’s, S&P, Fitch.

6  The CPI + 5% Index is created by adding 5% to the annual percentage change in the Consumer Price Index. This index reflects non-seasonably adjusted returns. The Consumer Price Index (CPI) is an unmanaged index representing the rate of inflation in U.S. consumer prices as determined by the U.S. Department of Labor Statistics. There can be no guarantee that the CPI or other indices will reflect the exact level of inflation at any given time. It is not possible to invest directly in an index.

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

5

Active Bond Fund
Subadviser: Declaration Management & Research, LLC and MFC Global Investment Management (U.S.), LLC
Portfolio Managers: Peter Farley, James E. Shallcross, Barry Evans, Howard C. Greene and Jeffrey N. Givens

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks income and capital appreciation by investing at least 80% of its net assets in a diversified mix of debt securities and instruments.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Federal National Mortgage Association	23.74
Mortgage Securities	17.68
Financial	16.03
Government	5.91
Asset Backed Securities	4.58
Communications	4.48
U.S. Treasury Notes	4.03
Energy	3.95
Utilities	3.57
Consumer, Non-cyclical	3.04
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Active Bond Class NAV returned +0.88%, underperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  Interest rates fell sharply over the period as the Federal Reserve and market participants remained concerned over slowing economic growth and the fragile condition of the financial system. Over the course of one year, the market and the economy have responded to many historic events. The worst housing market since the Great Depression, the bailout of Bear Stearns, the price of oil and other commodities hitting record highs, the U.S. dollar’s swift decline, the collapse of whole industries, such as mortgage insurance, monoline insurance, automobile, homebuilding, and banking/brokerage, and lastly, the takeover of Fannie Mae and Freddie Mac. It’s been a challenging year, with the credit crisis continuing to unfold and the economy (while resilient) beginning to show cracks with plunging consumer confidence, rising unemployment, and uneven growth.

The portfolio underperformed the benchmark as fixed income credit sectors massively deteriorated over the period. The portfolio’s overexposure to corporate credit and commercial mortgage-backed securities heavily weighed on performance. Specifically, concerns over credit losses plagued financial institutions, rising commodity prices pressured cyclical industries, and general economic weakness hurt the whole market. Mortgage sectors also performed terribly as the deterioration in the housing market intensified and tight credit conditions began to hamper commercial real estate.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Active Bond Class 1 (began 10/15/05)		0.72	%	—	—	2.69	%		0.72	%	—	—	7.95	%
Active Bond Class NAV (began 10/27/05)		0.88	%	—	—	2.91	%		0.88	%	—	—	8.50	%
Lehman Brothers Aggregate Bond Index (10/15/05) 3,4,5		5.86	%	—	—	5.03	%		5.86	%	—	—	15.18	%
Lehman Brothers Aggregate Bond Index (10/27/05) 3,4,5		5.86	%	—	—	5.22	%		5.86	%	—	—	15.58	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadvisers have managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5  It is not possible to invest directly in an index.

6

All Cap Core Fund
Subadviser: Deutsche Investment Management Americas Inc.
Portfolio Managers: Julie Abbett, Robert Wang and James Francis

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing in common stocks and other equity securities within all asset classes primarily in the Russell 3000 Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	17.10
Energy	14.00
Financial	13.08
Industrial	10.65
Technology	10.01
Communications	9.23
Consumer, Cyclical	7.52
Basic Materials	6.08
Utilities	1.51
Diversified	0.83
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the All Cap Core Class NAV returned –11.50%, underperforming the –10.22% return of the Russell 3000 Index.

Market Environment  •  The U.S. stock market has remained mired in the swings of extreme volatility that began last August. The triple crisis of the credit crunch, deep decline in housing prices, and dramatic increase in the price of oil has weighed heavily on investors’ minds. Investors have also had to grapple with the threat of a persistent increase in inflation and rumors of additional bank failures. Most notably, U.S. exports have experienced strong growth, which caused the government to revise second-quarter gross domestic product (GDP) growth upward to 3.3%. The economy has also benefited from the stimulus checks that were sent out to millions of taxpayers. After the Federal Reserve waged an aggressive rate-cutting campaign throughout the past 12 months, resulting in a total reduction of 3.25 percentage points, the federal funds rate remains at 2%.

Growth is likely to be much weaker over the balance of this year and into early 2009, as the fiscal stimulus that bolstered spending in the spring fades, and as the spillovers from the housing and credit woes become more evident. The recent decline in energy prices should help avert a sharper retrenchment in consumption, and will contribute to reversing some of the upward pressure on overall inflation. On the plus side, though, the non-financial business sector is in better shape than it usually is when the economy sours. Because most firms did not overbuild or over-hire during the recent expansion, they’re likely under less pressure to slash capital spending and hiring than in past downturns.

The Fund underperformed its benchmark during the period. Stocks within the diversified financials, banks, and media industry groups contributed most to relative performance. The portfolio benefited from our decisions to avoid shares in troubled financial firms including Fannie Mae, Freddie Mac and Lehman Brothers. The largest detractors from relative performance were energy, pharmaceuticals & biotechnology, and health care equipment & services.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
All Cap Core Class NAV (began 4/28/06)		–11.50	%	—	—	–0.74	%		–11.50	%	—	—	–1.73	%
Russell 3000 Index3,4,5		–10.22	%	—	—	1.02	%		–10.22	%	—	—	2.41	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

5  It is not possible to invest directly in an index.

7

All Cap Growth Fund
Subadviser: Invesco Aim Capital Management, Inc.
Portfolio Managers: Robert J. Lloyd & Ryan A. Amerman

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation by investing the Fund’s assets primarily in common stocks of companies that are believed to benefit from new or innovative products, services or processes as well as those that have experienced above-average, long-term growth in earnings and have excellent prospects for future growth.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	29.92
Industrial	20.57
Energy	17.94
Basic Materials	9.86
Technology	8.87
Communications	5.03
Financial	3.12
Consumer, Cyclical	0.77
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the All Cap Growth Class NAV returned –13.76%, underperforming the –6.56% return of the Russell 3000 Growth Index.

Market Environment  •  Major U.S. equity markets had negative performance during the fiscal year due to ongoing concerns about the credit markets, weakness in the housing market, rising energy and food prices and a deteriorating outlook for corporate earnings. In this environment, indexes measuring the performance of large-, mid- and small-cap stocks were all in negative territory, with small-cap stocks generally outperforming mid- and large-cap stocks. Overall, growth-style stocks outperformed value stocks.

Among the key detractors to results relative to the Russell 3000 Growth Index was substantial underperformance in the Information Technology sector, driven largely by stock selection. Poor stock picking also hampered results in the Industrials and Consumer Discretionary sectors. An overweighted position was also costly within Industrials, which suffered in a weak economic environment. In Health Care and Consumer Staples, weak relative performance was caused by sub-par stock selection and underweighted positions in sectors that performed relatively well in the benchmark index.

The Fund received positive contributions from the Financials and Telecommunications sectors because of strong stock selection. An underweighted stance in financials boosted results further, as many financial stocks struggled during the reporting period.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
All Cap Growth Class 1 (began 10/15/05)		–13.81	%	—	—	2.48	%		–13.81	%	—	—	7.32	%
All Cap Growth Class NAV (began 10/15/05)		–13.76	%	—	—	2.54	%		–13.76	%	—	—	7.50	%
Russell 3000 Growth Index3,4,5		–6.56	%	—	—	5.65	%		–6.56	%	—	—	17.13	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 3000 Growth Index is an unmanaged index that measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes.

5  It is not possible to invest directly in an index.

8

All Cap Value Fund
Subadviser: Lord, Abbett & Co. LLC
Portfolio Managers: Robert P. Fetch, Howard E. Hansen and Deepak Khana

INVESTMENT OBJECTIVE & POLICIES  •  To seek capital appreciation by investing in equity securities of U.S. and multinational companies that are believed to be undervalued in all capitalization ranges.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Industrial	24.50
Consumer, Non-cyclical	22.40
Energy	12.53
Financial	12.33
Consumer, Cyclical	10.83
Basic Materials	8.01
Communications	4.59
Utilities	3.17
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the All Cap Value Class NAV returned –4.57%, outperforming the –14.11% return of the Russell 3000 Value Index.

Market Environment  •  During the period, large-cap, mid-cap, and small-cap stocks within the Russell 3000 Value Index all declined by double digits. Stock selection in all three market capitalization segments was positive relative to the benchmark. The portfolio’s weighting in large-cap stocks (over $10 billion capitalization) was 55% on average, versus 76% for the benchmark. Exposure to mid-cap stocks ($2–$10 billion cap) was 34% versus 16%, and the small-cap allocation (below $2 billion cap) was 7% of the portfolio versus 8%.

The Financial Services sector was the most significant contributor to relative performance. The portfolio held less than half the benchmark weighting in this sector, which was the Index’s weakest performing area, as many financial firms continued to suffer from the subprime mortgage fallout and the ensuing credit crunch. A favorable overweight and good stock selection in the Other Energy sector also helped, as it was the Index’s best performing area.

The Auto & Transportation sector was the portfolio’s weakest sector. The portfolio’s underweight within the Integrated Oils sector also detracted from performance as crude oil prices topped $140 per barrel. Fortunately, the portfolio’s positioning in “Other Energy” stocks more than made up for the shortfall in the Integrated Oils sector.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
All Cap Value Class 1 (began 10/15/05)		–4.62	%	—	—	7.50	%		–4.62	%	—	—	23.15	%
All Cap Value Class NAV (began 10/15/05)		–4.57	%	—	—	7.53	%		–4.57	%	—	—	23.25	%
Russell 3000 Value Index3,4,5		–14.11	%	—	—	4.46	%		–14.11	%	—	—	13.38	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 3000 Value Index is an unmanaged index that measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or Russell 2000 Value indexes.

5  It is not possible to invest directly in an index.

9

American Diversified Growth & Income Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  •   Seeks long-term growth of capital by investing in underlying funds American Funds strategies. The fund may also invest in fixed-income and equity securities, which can include common and preferred stocks of large-, medium- and small-capitalization companies in both developed (including the U.S.) and emerging markets.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy	24.16
Large Value	17.96
U.S. Large Cap	15.98
Intermediate Bond	13.97
Financial	5.99
International	4.99
International Mid Cap	4.99
Diversified	4.00
Utilities	3.96
International Small Cap	2.00
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the two-month period from the Fund’s inception on July 1 to August 31, 2008, the American Diversified Growth & Income Class 1 returned –2.50%, underperforming the +0.66% return of the Combined Index.

Market Environment  •  For the two-month period, the U.S. equity market held up reasonably well during a time of tremendous global volatility in which the U.S. dollar enjoyed a vigorous rally vs. the euro from mid-July through the end of August. International equity markets significantly lagged the U.S. markets. For the two-month period, international large caps in developed markets outperformed international small-caps which in-turn beat emerging market equities. Investment-grade bonds and particularly Treasury instruments performed well over the period, while high yield bonds lagged amid a tepid appetite for risk. Global bonds struggled due to the strengthening U.S. dollar.

Allocations to international equity markets including emerging markets and international small caps detracted significantly from portfolio performance on an absolute basis, while allocations to the fixed income asset class mitigated some of the downside risk. Managers performed reasonably well against individual benchmark indexes but detracted when compared to the broad benchmarks.

American Funds Bond Fund of America, a 14% allocation, trailed the Lehman Brothers Aggregate Bond Index due to its relative over-weight to high yield securities, while American Fundamental Investors, a 12% weight, lagged the S&P 500 due to its over-weight to the underperforming Energy and Materials sectors. Conversely, American Washington Mutual Investors, a 12% allocation, contributed positively to portfolio results due to strong security selection within the volatile Financial sector.

Global stock markets appear to be near an important inflection point. Recent sharp declines in energy and food commodities have called into question whether the Energy and Materials sectors can continue to provide market leadership, and it remains to be seen which other sectors can take the lead in their stead. Moreover, while the sharp decline in commodities prices provided some relief from inflationary pressures, it might also reflect the recent weakening trends we’ve seen in economic growth rather than merely the bursting of a speculative bubble. On the positive side, emerging markets continue to offer relatively strong economic growth, a trend we expect to persist for the foreseeable future. We remain convinced that in these uncertain times it is especially important to have a portfolio that provides broad diversification.

PERFORMANCE TABLE1	Average Annual Total Return					Cumulative Total Return
Periods Ended August 31, 2008		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
American Diversified Growth & Income Class 1 (began 7/01/08)		—	—	—	—		—	—	—	–2.50	%
Combined Index2,3,4		—	—	—	—		—	—	—	0.66	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  The Combined Index represents 75% of the Standard & Poor’s 500 Index and 25% of the Lehman Brothers Aggregate Bond Index.

4  It is not possible to invest directly in an index.

10

American Fundamental Holdings Fund
Subadviser: MFC Global Investment Management (USA) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  •  To seek growth of capital. The Fund invests in common stocks of U.S. companies with market capitalization of at least $10 billion.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Intermediate Bond	24.95
Energy	22.11
International	12.99
Large Value	11.99
U.S. Large Cap	11.99
Government	8.04
Utilities	7.93
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the two-month period from the Fund’s inception on July 1 to August 31, 2008, the American Fundamental Holdings Class 1 returned –2.20%, underperforming the +0.68% return of the Combined Index.

Market Environment  •  During the portfolio’s short existence, from 7/1/08 to 8/31/08, the U.S. equity market held up reasonably well during a period of tremendous global volatility in which the dollar enjoyed a vigorous rally versus the Euro from the middle of July through the end of August. For the two-month period, small-cap stocks outperformed mid-caps, which beat large-caps. Value stocks outpaced growth stocks due to the strength in Financials stocks, which tend to fall into the value category. Foreign stocks significantly underperformed their domestic counterparts, particularly in the international small-cap and emerging markets segments. Investment-grade bonds and particularly Treasury instruments performed well over the period, while high yield bonds lagged amid a tepid appetite for risk. Global bonds struggled due to the strengthening U.S. dollar.

Allocations to international equity markets including detracted the most from portfolio performance on an absolute basis, while allocations to the fixed income asset class mitigated some of the downside risk. Managers performed reasonably well against individual benchmark indexes but detracted when compared to the broad benchmarks.

Investments in American Funds Washington Mutual Investors and American Funds U.S. Government Securities aided portfolio performance, while American Funds Bond Fund of America, American Funds Income Fund of America, American Funds Investment Company of America, American Funds EuroPacific Growth Fund, American Funds Fundamental Investors, and American Funds Growth Fund of America all detracted from results.

American Funds Bond Fund of America, a 25% allocation, trailed the Lehman Brothers Aggregate Bond Index due to its relative over-weight to high yield securities, while American Fundamental Investors, a 12% weight, lagged the S&P 500 due to its over-weight to the underperforming Energy and Materials sectors. Conversely, American Washington Mutual Investors, a 10% allocation, contributed positively to portfolio results due to strong security selection within the volatile Financial sector.

Global stock markets appear to be near an important inflection point. Recent sharp declines in energy and food commodities have called into question whether the Energy and Materials sectors can continue to provide market leadership, and it remains to be seen which other sectors can take the lead in their stead. Moreover, while the sharp decline in commodities prices provided some relief from inflationary pressures, it might also reflect the recent weakening trends we’ve seen in economic growth rather than merely the bursting of a speculative bubble. On the positive side, emerging markets continue to offer relatively strong economic growth, a trend we expect to persist for the foreseeable future. We remain convinced that in these uncertain times it is especially important to have a portfolio that provides broad diversification.

PERFORMANCE TABLE1	Average Annual Total Return					Cumulative Total Return
Periods Ended August 31, 2008		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
American Fundamental Holdings Class 1 (began 7/01/08)		—	—	—	—		—	—	—	–2.20	%
Combined Index2,3,4		—	—	—	—		—	—	—	0.68	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  The Combined Index represents 65% of the Standard & Poor’s 500 Index and 35% of the Lehman Brothers Aggregate Bond Index.

4  It is not possible to invest directly in an index.

11

American Global Diversification Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  •   To seek long-term growth of capital by investing in underlying American Funds strategies. The fund may also invest in fixed income and equity securities, which can include common and preferred stocks of large-, medium- and small-capitalization companies in both developed (including the U.S.) and emerging markets.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Intermediate Bond	21.08
International Small Cap	15.98
International Mid Cap	15.98
Diversified	11.98
International	9.98
U.S. Large Cap	9.98
Large Value	7.96
High Yield Bond	7.06
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the two-month period from the Fund’s inception on July 1 to August 31, 2008, the American Global Diversification Class 1 returned –4.90%, underperforming the –2.38% return of the Combined Index.

Market Environment  •  For the two-month period, the U.S. equity market held up reasonably well during a time of tremendous global volatility in which the U.S. dollar enjoyed a vigorous rally vs. the euro from mid-July through the end of August. International equity markets significantly lagged the U.S. markets. For the two-month period, international large caps in developed markets outperformed international small-caps which in-turn beat emerging market equities. Investment-grade bonds and particularly Treasury instruments performed well over the period, while high yield bonds lagged amid a tepid appetite for risk. Global bonds struggled due to the strengthening U.S. dollar.

Allocations to international equity markets including emerging markets and international small caps detracted the most from portfolio performance on an absolute basis, while allocations to the fixed income asset class mitigated some of the downside risk. Managers performed reasonably well against individual benchmark indexes but detracted when compared to the broad benchmarks. American Funds Capital Income Builder aided portfolio performance, while investments in American Funds High-Income Trust, American Funds Bond Fund of America, American Funds New Perspective, American Funds New World, American Funds SMALLCAP World, American Funds EuroPacific Growth, and American Funds Capital World Growth & Income all detracted from results. As an example, American Funds Bond Fund of America, a 21% allocation, trailed the Lehman Brothers Aggregate Bond Index due to its relative over-weight to high yield securities.

Global stock markets appear to be near an important inflection point. Recent sharp declines in energy and food commodities have called into question whether the Energy and Materials sectors can continue to provide market leadership, and it remains to be seen which other sectors can take the lead in their stead. Moreover, while the sharp decline in commodities prices provided some relief from inflationary pressures, it might also reflect the recent weakening trends we’ve seen in economic growth rather than merely the bursting of a speculative bubble. On the positive side, emerging markets continue to offer relatively strong economic growth, a trend we expect to persist for the foreseeable future. We remain convinced that in these uncertain times it is especially important to have a portfolio that provides broad diversification.

PERFORMANCE TABLE1	Average Annual Total Return					Cumulative Total Return
Periods Ended August 31, 2008		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
American Global Diversification Class 1 (began 7/01/08)		—	—	—	—		—	—	—	–4.90	%
Combined Index2,3,4		—	—	—	—		—	—	—	–2.38	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemption of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month end closest to the actual inception date of the fund.

3  The Combined Index represents 70% of the MSCI AC World Index and 30% of the Lehman Brothers Aggregate Bond Index.

4  It is not possible to invest directly in an index.

12

Blue Chip Growth Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Larry J. Puglia

INVESTMENT OBJECTIVE & POLICIES  •  To provide long-term growth of capital with current income as a second objective. The Fund invests at least 80% of its net assets in common stocks of large- and medium-sized blue chip growth companies that are considered well established in their industries and have the potential for above-average earnings growth.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	21.20
Communications	17.81
Technology	16.01
Financial	11.94
Energy	9.54
Consumer, Cyclical	8.98
Industrial	8.61
Basic Materials	4.66
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Blue Chip Growth Class NAV returned –8.31%, outperforming the –11.14% return of the S&P 500 Index.

Market Environment  •  The past 12 months were turbulent for equity markets, primarily due to the consequences of the subprime mortgage crisis and rising prices for commodities, particularly oil. In addition, high headline (overall) inflation and a poor employment outlook combined to put considerable pressure on consumer spending.

The S&P 500 Index posted a double-digit negative return for the period. The Energy and Materials sectors posted absolute gains as oil and commodity prices soared, though that trend had begun to reverse itself by the end of the period. Two traditionally non-cyclical sectors, Utilities and Consumer Staples, enjoyed positive returns, but results in the remaining sectors were all negative. Financials fared worst as the mortgage-related credit crisis continued to play out, with the average stock in the sector losing more than a third of its market value.

Although the portfolio posted a loss for the year ended August 31, 2008, it held its value considerably better than its benchmark, the S&P 500 Index. Stock selection results were excellent overall, while sector positioning was marginally negative.

A significant underweight in the sagging Financials sector contributed greatly to the portfolio’s outperformance, and stock selection in this area was highly productive, particularly in the capital markets industry.

Sector and stock positioning in Health Care also made a major contribution to relative results. Health Care generally outperformed the index average, and our overweight was beneficial. In addition, stock selection was strong here, especially our focus on two major biotechnology firms.

Our positions in Information Technology, Industrials and Business Services, Materials, and Telecommunication Services all added value for the portfolio during the period. However, these relative gains were offset to a degree by our underweights in both Energy and Consumer Staples, the benchmark’s two best-performing sectors. Our stock choices in Consumer Discretionary were disappointing as well.

PERFORMANCE TABLE1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Blue Chip Growth Class 1 (began 10/15/05)		–8.35	%	—	—	5.59	%		–8.35	%	—	—	16.96	%
Blue Chip Growth Class NAV (began 10/15/05)		–8.31	%	—	—	5.64	%		–8.31	%	—	—	17.12	%
S&P 500 Index3,5,6		–11.14	%	—	—	4.77	%		–11.14	%	—	—	14.36	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Blue Chip Growth Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

6  It is not possible to invest directly in an index.

13

Capital Appreciation Fund
Subadviser: Jennison Associates, LLC
Portfolio Managers: Michael Del Balso, Kathleen A. McCarragher and Spiros Seagalas

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing at least 65% of the Fund’s total assets in equity-related securities of companies that exceed $1 billion in market capitalization and that are believed to have above-average growth prospects.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	30.41
Technology	19.57
Communications	15.42
Energy	9.10
Consumer, Cyclical	8.28
Industrial	7.33
Financial	4.14
Basic Materials	3.41
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Capital Appreciation Class NAV returned –5.65%, outperforming the –6.77% return of the Russell 1000 Growth Index.

Market Environment  •  Problems in the subprime mortgage market spread throughout the financial system during the past 12 months, creating a full-blown liquidity/credit crisis that roiled global markets. Financial institutions with balance sheets exposed to leveraged securities faced mounting losses and a need to raise additional capital. In March, the Federal Reserve and the Treasury Department intervened to facilitate the sale of securities firm Bear Stearns, which had been immobilized by liquidity problems. To contain financial market turmoil and to fend off a possible recession, the Fed also cut key interest rates substantially, opened the discount window to brokers, and created a massive lending facility for swapping illiquid debt obligations for U.S. Treasuries.

Increased loan defaults and higher rates of non-performing assets throughout the global financial system reflected a growing list of consumer woes — substantial housing declines, tighter lending standards, and rampant energy and food price escalation. Softening labor markets and broadening declines in consumption joined housing weakness and higher commodity prices as economic strains. Declining markets and the U.S. dollar’s devaluation soured consumer sentiment. Citing increased concerns about inflationary pressures, the Fed held short-term interest rates steady in June, ending a series of consecutive reductions that began last September. Real economic growth grew at a paltry 1.0% pace in 2008’s first quarter.

The Fund outperformed its benchmark, largely on solid stock selection in the Health Care, Materials, and Energy sectors. Health Care holdings benefited from new drug approvals, the promise of innovative treatments under development, and merger and acquisition activity. In Materials, a genetically modified seed provider benefited from a bullish agriculture cycle, advancing on higher prices, market share gains, and expanded margins. Top-performing Energy holdings included a low-cost solar cell manufacturer and a high-quality natural gas firm. Stock selection also contributed to returns relative to the benchmark in Financials and Information Technology, although both sectors declined substantially in absolute terms. Stock selection in the Industrials sector was the greatest drag on performance, as key holdings in this sector fell on capacity constraints and disappointing earnings. Consumer Discretionary holdings also hurt returns, as housing market weakness, rising unemployment, and spiraling food and energy prices curtailed spending.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Capital Appreciation Class 1 (began 10/15/05)		–5.80	%	—	—	3.56	%		–5.80	%	—	—	10.61	%
Capital Appreciation Class NAV (began 10/15/05)		–5.65	%	—	—	3.65	%		–5.65	%	—	—	10.89	%
Russell 1000 Growth Index3,4,5		–6.77	%	—	—	5.45	%		–6.77	%	—	—	16.50	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 1000 Growth Index is an unmanaged index composed of the Russell 1000 securities that have a greater-than-average growth orientation.

5  It is not possible to invest directly in an index.

14

Core Bond Fund
Subadviser: Wells Capital Management, Inc.
Portfolio Managers: William Stevens, Thomas O’Connor, Lynne Royer, Troy Ludgood

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks total return consisting of income and capital appreciation by investing at least 80% of its net assets in a broad range of investment grade debt securities, including U.S. Government obligations, corporate bonds, mortgage-backed and other asset-backed securities and money market instruments.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Federal National Mortgage Association	26.58
Mortgage Securities	18.00
Federal Home Loan Mortgage Corp.	11.51
Asset Backed Securities	10.46
Financial	5.91
Short-term Securities	5.32
U.S. Treasury Notes	3.38
U.S. Treasury Bonds	3.13
Energy	2.70
Government National Mortgage Association	2.40
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Core Bond Class NAV returned +5.49% underperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  We witnessed a significant re-pricing of risk across all markets as subprime mortgage problems spread to all market sectors. The fixed income market witnessed the near extinction of many recently developed investments such as collateralized debt obligations (CDOs), structured investment vehicles (SIVs), and auction rate securities. The Federal Reserve and U.S. Treasury took a series of actions to move aggressively and creatively to help stabilize the markets. This includes implementing significant federal funds rate cuts, facilitating the JP Morgan/Bear Stearns bailout, making a new lending facility available to investment banks and most recently, the takeover of Fannie Mae and Freddie Mac.

As investor fear and lack of confidence overwhelmed the markets and affected the economy, Treasury yields declined significantly in response to Fed easing and a flight-to-quality among investments. Over the past year, the yield curve steepened significantly, with two-year Treasury yields declining 1.88 percentage points while yields on 10-year Treasuries declined 0.80 percentage points. The underperformance of all spread sectors has produced current yield premiums to Treasuries at or near their all-time widest levels. A sharply slowing global economy and rising unemployment have set the stage for a prolonged economic slowdown. For the near term, we expect the broader economy to remain on shaky ground and market volatility to create pockets of opportunity.

Security selection was the largest contributor to performance during the year. In corporate bonds, a large underweight to banks and finance, and being out some of the worst performing finance names, contributed. In addition, security selection within the Telecommunications, Non-corporate, and Utility sectors added relative return vs. the Lehman Aggregate Bond Index. Security selection in structured products also contributed to performance, as did relative value trading in collateralized mortgage obligations (CMOs) and pass-through pools. Positioning and security selection in high quality consumer asset-backed securities added to returns. The largest detractors to performance were the Fund’s consistent overweights to mortgage-backed securities and asset-backed securities, which significantly underperformed Treasuries. Timely shifts in the Fund’s allocation to the Corporate sector enhanced performance.

We remain focused on bottom-up security selection, using market dislocations to identify and capitalize on relative value trading while managing risk.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Core Bond Class 1 (began 10/15/05)		5.43	%	—	—	4.47	%		5.43	%	��	—	13.43	%
Core Bond Class NAV (began 10/15/05)		5.49	%	—	—	4.53	%		5.49	%	—	—	13.62	%
Lehman Brothers Aggregate Bond Index3,4,5		5.86	%	—	—	5.03	%		5.86	%	—	—	15.18	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5  It is not possible to invest directly in an index.

15

Core Equity Fund
Subadviser: Legg Mason Capital Management, Inc.
Portfolio Managers: Mary Chris Gay and Bill Miller

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital growth by investing at least 80% of the Fund’s net assets in equity securities that offer the potential for capital growth.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications	26.10
Financial	25.73
Technology	14.98
Consumer, Non-cyclical	8.40
Industrial	7.82
Utilities	7.11
Consumer, Cyclical	6.14
Basic Materials	0.63
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Core Equity Class NAV returned –30.94%, underperforming the –11.14% return of the S&P 500 Index.

Market Environment  •  The credit and liquidity crunch that began last summer recently marked its one-year anniversary. What began with trouble in the U.S. housing market soon spread to structured investment vehicles, asset-backed commercial paper, auction rate securities, as well as other areas of the foreign and domestic financial markets. The resulting financial panic reached several crescendos, including the demise of Bear Stearns in March, and most recently, the government intervention in Fannie Mae and Freddie Mac in September. The Federal Reserve’s steady interest rate cuts and newly implemented credit facilities were unable to halt the market’s swoon, and with the seemingly daily rise in commodity prices during the period, inflation concerns mounted as well. With unemployment on the rise and economic growth slowing, investors were not lacking for bad news.

The Fund underperformed its benchmark during the period. Our underperformance was driven by investments in several financial securities at the eye of the swirling credit storm, which were rescued by other entities after their liquidity positions became or were deemed inadequate. Other financial companies detracted as well, as massive write-downs and a slew of capital raises soured investors. Outside of financials, slow progress in the turnaround of a telecommunications firm led to large selloffs, while a couple of health care companies declined on concerns of a negative underwriting cycle. The strong relative performance of several holdings partly offset poor results elsewhere.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Core Equity Class 1 (began 10/15/05)		–31.01	%	—	—	–7.45	%		–31.01	%	—	—	–19.99	%
Core Equity Class NAV (began 10/15/05)		–30.94	%	—	—	–7.40	%		–30.94	%	—	—	–19.85	%
S&P 500 Index3,4,5		–11.14	%	—	—	4.77	%		–11.14	%	—	—	14.36	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5  It is not possible to invest directly in an index.

16

Emerging Growth Fund
Subadviser: MFC Global Investment Management (U.S.), LLC
Portfolio Manager: Dan Cole

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation by investing primarily in high-quality securities and convertible instruments of small-cap U.S. companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	30.47
Technology	14.91
Industrial	13.87
Financial	7.03
Energy	4.95
Consumer, Cyclical	4.71
Communications	4.47
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Emerging Growth Class NAV returned –17.65%, underperforming the –3.79% return of the Russell 2000 Growth Index.

Market Environment  •  The year witnessed extremely volatile equity markets amid one of the more challenging capital market backdrops in recent history. Deteriorating housing market conditions last year led to credit issues related to subprime lending. Losses in subprime-related investments led to serious problems within the Financial sector and related industries. Ultimately, several banks and financial companies filed for bankruptcy, were sold at deep discounts, or were bailed out by the government. This created a business environment with very tight capital. Fears of inflation persisted as commodity prices soared. A barrel of crude oil rose from just over $70 to a high of $147 in July before retreating below $100 in September. Other commodities rose significantly, which created a significant headwind for stocks with exposure to consumers. This resulted in a very narrow market led by Energy, Materials, and commodity-related Industrials at the expense of Consumer Discretionary, Financials, and Technology.

The Fund significantly lagged its benchmark for the period. Both stock selection and sector allocation held back relative performance. In general, the portfolio was positioned to benefit from a market characterized by a slowing economy that would avert recession, and where classic growth sectors and companies with visible earnings growth would benefit. Our largest active sector bets were in Technology and Health Care, and we were underweight in Energy, Materials, and commodity-related Industrials.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Emerging Growth Class 1 (began 10/15/05)		–17.64	%	—	—	3.40	%		–17.64	%	—	—	10.11	%
Emerging Growth Class NAV (began 10/15/05)		–17.65	%	—	—	3.42	%		–17.65	%	—	—	10.18	%
Russell 2000 Growth Index3,4,5		–3.79	%	—	—	7.93	%		–3.79	%	—	—	24.57	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

5  It is not possible to invest directly in an index.

17

Emerging Markets Value Fund
Subadviser: Dimensional Fund Advisors LP
Portfolio Manager: Karen E. Umland

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation by investing primarily in companies associated with emerging markets.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*		% of Total
Financial		26.03
Basic Materials		19.04
Industrial		13.32
Consumer, Cyclical		9.92
Consumer, Non-cyclical		8.94
Energy		6.35
Diversified		4.35
Communications		4.15
Technology		3.53
Utilities		1.73
Country Weighting	% of Total
Brazil	12.17
South Korea	11.14
Taiwan	11.07
Mexico	9.97
India	9.67
South Africa	8.24
Hong Kong	5.68
China	4.13
Poland	3.70
Malaysia	3.48
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Emerging Markets Value Class NAV returned –12.61%, underperforming the –9.83% return of the MSCI Emerging Markets Index.

Market Environment  •  Developed market equities performed very poorly during the period, although the dollar-denominated returns of those markets were greatly bolstered by the relative weakness of the U.S. dollar. From September 2007 to August 2008, the U.S. dollar depreciated against all major currencies except the British pound and the Canadian dollar. The overall impact of the U.S. dollar’s decline versus developed country currencies was to increase the dollar-denominated returns of developed market equities by about 3%.

Emerging markets also performed poorly during the one-year period, although the dollar-denominated returns of emerging markets equities benefited somewhat, from the weakness of the U.S. dollar relative to some of the main emerging markets currencies, such as the Mexican peso and the Brazilian real. The overall impact of currency fluctuations between the dollar and emerging markets currencies was to increase the dollar-denominated returns of emerging markets equities by about 1.7%. As measured by the MSCI Emerging Markets Index, the dollar-denominated return for emerging markets was –10.1%.

The portfolio’s relatively large exposure to India and smaller exposure to China, both of which underperformed relative to other emerging markets, boosted relative performance. The portfolio’s limited exposure to deep growth stocks and other differences in allocation along the value/growth dimension also contributed to relative performance, as growth stocks underperformed value stocks during the period. However, the poor relative performance of the portfolio’s basket of deep value stocks had a large negative impact on relative performance. The Fund’s overweighting to small-cap stocks also detracted from relative performance, as large-cap stocks greatly outperformed small-caps in emerging markets. The portfolio’s underweighting to the Energy sector and the poor relative performance of its energy holdings hurt relative performance.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Emerging Markets Value Class NAV (began 5/1/07)		–12.61	%	—	—	–2.77	%		–12.61	%	—	—	–3.69	%
MSCI Emerging Markets Index3,4,5		–9.83	%	—	—	1.67	%		–9.83	%	—	—	2.25	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since May 1, 2007.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  MSCI Emerging Markets Index is an unmanaged index designed to measure the performance of developing markets.

5  It is not possible to invest directly in an index.

18

Emerging Small Company Fund
Subadviser: RCM Capital Management LLC
Portfolio Managers: Thomas J. Ross and Louise M. Laufersweiler

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation by investing at least 80% of the Fund’s total net assets in equity securities of U.S. companies with smaller capitalizations. The Fund may also invest up to 15% of its assets in foreign securities including emerging markets and may also from time to time invest a significant percentage of its assets in the Technology and/or Health Care sectors.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	29.10
Technology	19.97
Industrial	11.63
Consumer, Cyclical	10.19
Energy	8.35
Financial	6.38
Communications	6.11
Utilities	1.29
Basic Materials	0.37
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Emerging Small Company Class NAV returned –15.06%, underperforming the –3.79% return of the Russell 2000 Growth Index.

Market Environment  •  U.S. small-cap growth equities experienced a volatile 12 months. The Russell 2000 Growth Index, a proxy for small-cap growth shares, reached a multi-year high on October 10, 2007 before falling 25% from peak to trough before recovering nearly half of those losses in more recent months. Declining home values, tighter lending standards, rising food and energy costs, and contracting employment continue to weigh heavily on the market. However, the Federal Reserve has taken aggressive action to ease credit spreads and inject liquidity back into the system. Meanwhile the nearly $100 billion federal tax rebate package earlier in the year supported consumer spending into the summer months. Nonetheless, the battle between deteriorating fundamentals and stimulative policy has led to an extremely volatile trading environment.

Small-cap growth investors are experiencing a very difficult environment, with momentum spiking to levels last reached in the late stages of the 1990s technology bubble, and the vast majority of small-cap growth managers underperformed the Index for the year to date.

The Fund significantly underperformed its benchmark. Relative returns were hindered by stock selection, particularly in Consumer Discretionary, Technology, Industrials, and Financials. Positive stock selection in Health Care, Telecommunications, Consumer Staples and Utilities was not enough to offset the detraction.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Emerging Small Company Class 1 (began 10/15/05)		–15.13	%	—	—	1.42	%		–15.13	%	—	—	4.13	%
Emerging Small Company Class NAV (began 6/26/06)		–15.06	%	—	—	–0.05	%		–15.06	%	—	—	–0.11	%
Russell 2000 Growth Index (10/15/05)3,5,6		–3.79	%	—	—	7.93	%		–3.79	%	—	—	24.57	%
Russell 2000 Growth Index (6/26/06)3,5,6		–3.79	%	—	—	6.52	%		–3.79	%	—	—	14.84	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Emerging Small Company Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

6  It is not possible to invest directly in an index.

19

Equity-Income Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Brian C. Rogers

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation and to provide dividend income. The Fund invests at least 80% of its total assets in equity securities, with 65% in common stocks of well-established companies paying above-average dividends.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	21.10
Consumer, Non-cyclical	16.23
Energy	11.70
Communications	11.17
Industrial	10.60
Consumer, Cyclical	7.85
Basic Materials	5.63
Utilities	4.43
Technology	4.41
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Equity-Income Class NAV returned –11.79%, outperforming the –14.66% return of the Russell 1000 Value Index.

Market Environment  •  A slumping economy and rising market volatility challenged investors during the past 12 months. While the Russell 1000 Value Index and Russell 1000 Growth Index both declined during the period, the value index significantly underperformed the growth index. Energy was the strongest sector, riding the surge in oil prices. Consumer Staples and Health Care, sectors that are relatively insensitive to economic weakness, also outperformed the benchmark average. Turmoil in the credit markets led Financials to plummet, and this was by far the weakest sector.

For the 12-month period, the portfolio solidly outperformed its benchmark, the Russell 1000 Value Index. Stock selection and groups weightings both contributed to relative results. The Financials sector was the greatest contributor to relative results, due to strong stock selection and an underweight in this struggling sector. Portfolio positions in trust banks helped returns, as they were not hit as hard as investment banks by market volatility. We remain underweight to Financials stocks, but have added to commercial bank positions.

Deft stock picks in the Consumer Staples sector also contributed to relative returns. Beverage industry names drove the outperformance. A major brewery holding agreed to be purchased at an attractive valuation. A prominent discount retailer performed well as cash-strapped consumers flocked to the store seeking cheaper goods.

An underweight in Energy, the benchmark’s best performer, was the most significant relative detractor. We continue to invest in the sector, but remain underweight due to valuations. Weak stock selection in Materials also held back relative returns. Overweighting paper and forest products hurt returns as the industry was hampered by the rising costs of energy and raw materials.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Equity-Income Class 1 (began 10/15/05)		–11.83	%	—	—	4.81	%		–11.83	%	—	—	14.47	%
Equity-Income Class NAV (began 10/15/05)		–11.79	%	—	—	4.86	%		–11.79	%	—	—	14.63	%
Russell 1000 Value Index3,5,6		–14.66	%	—	—	4.37	%		–14.66	%	—	—	13.11	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Equity-Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

6  It is not possible to invest directly in an index.

20

Fundamental Value Fund
Subadviser: Davis Selected Advisers, L.P.
Portfolio Managers: Christopher C. Davis and Kenneth Charles Feinberg

INVESTMENT OBJECTIVE & POLICIES  •  To seek growth of capital. The Fund invests in common stocks of U.S. companies with market capitalization of at least $10 billion.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	29.40
Energy	17.52
Consumer, Non-cyclical	15.63
Consumer, Cyclical	9.05
Communications	8.01
Industrial	5.91
Technology	5.81
Basic Materials	1.17
Diversified	0.67
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Fundamental Value Class NAV returned –10.93%, outperforming the –11.14% return of the S&P 500 Index.

Market Environment  •  Consumer Staples, Energy, and Materials were the only sectors within the Index that earned positive returns. Energy companies were the most important contributors to the Fund’s performance over the year. The Fund’s energy holdings outperformed their counterparts within the Index. The Fund also benefited from an overweighting in this sector relative to the benchmark.

Although the Fund’s financial companies outperformed the Financials sector within the Index, they were still the largest detractor from its absolute performance. A higher relative average weighting in this sector (33% versus 17% for the Index) detracted from both absolute and relative performance. The Fund’s Consumer Discretionary companies performed in line with the corresponding sector within the benchmark. However, a higher relative weighting in this sector held back both absolute and relative performance.

The Fund’s long-term focus usually results in low portfolio turnover. We do not overreact to past short-term performance from individual holdings on either the upside or the downside. We deliberately focus on the future, considering each company’s long-term business fundamentals. Five companies dropped out of the Fund’s top 20 holdings as of August of last year. The Fund still owns four of these holdings, and one was sold. Of the five new additions to our top 20 holdings, three were companies that we already owned, and the other two were new investments.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Fundamental Value Class 1 (began 10/15/05)		–10.97	%	—	—	3.86	%		–10.97	%	—	—	11.53	%
Fundamental Value Class NAV (began 10/15/05)		–10.93	%	—	—	3.92	%		–10.93	%	—	—	11.70	%
S&P 500 Index3,4,5		–11.14	%	—	—	4.77	%		–11.14	%	—	—	14.36	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5  It is not possible to invest directly in an index.

21

Global Bond Fund
Subadviser: Pacific Investment Management Company LLC
Portfolio Manager: Scott Mather

INVESTMENT OBJECTIVE & POLICIES  •  To seek maximum total return, consistent with preservation of capital and prudent investment management. The Fund invests at least 80% of its net assets in fixed-income instruments, which may be represented by futures contracts with respect to such securities, and options on such securities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Government	32.61
Financial	30.85
Mortgage Securities	16.66
Government National Mortgage Association	6.56
Asset Backed Securities	6.22
Federal National Mortgage Association	4.49
Communications	1.75
Consumer, Non-cyclical	1.39
Consumer, Cyclical	1.07
Energy	0.91
Country Weighting	% of Total
United States	73.81
Japan	30.33
Germany	8.01
Canada	5.56
United Kingdom	5.14
Ireland	2.99
France	2.66
Cayman Islands	2.48
Australia	2.26
Italy	1.94
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Global Bond Class NAV returned +7.81%, underperforming the +9.52% return of the JP Morgan Global Government Bond Unhedged Index.

Market Environment  •  The credit crisis that began in the summer of 2007 continued to weigh on the financial markets throughout the year. Government bond yields fell worldwide amid a flight to the highest quality assets. Economies slowed in the U.K., the European Union Countries, and Japan. To forestall a U.S. recession and unfreeze credit markets, the Federal Reserve (the “Fed”) lowered the federal funds rate from 5.25% to 2.00% before pausing in April due to concerns about inflation. The Fed also took several unconventional steps. It made several hundred billion dollars of liquidity facilities available against an expanded range of collateral, opened its discount window to investment banks, and arranged the rescue of Bear Stearns, a brokerage firm weighed down by subprime-related exposure. The U.S. yield curve remained steep. Agency mortgage-backed securities (MBS) continued to underperform Treasuries, driven by the liquidity crisis. Dealers struggled with regulatory capital constraints and the looming threat of further downgrades to positions; they may soon be forced to unwind more risk. Price volatility remains high and liquidity extremely poor across the capital structure.

The portfolio was well positioned through February. Developed market global bonds posted strong returns during this period. Global yield curves steepened sharply as short-dated government bonds outperformed in a flight to quality. Above-index duration and curve steepening bias in the U.S. and U.K. helped performance through February. However, after March, the front-end of the yield curves started to flatten. In the last six months, rising interest rates and yield curve flattening detracted from performance in the U.S. and U.K. The subprime debacle led to a liquidity crisis. Allocation to high quality corporate debt of select financial companies also detracted from returns as these companies continued to face subprime-related write-downs. Tactical holdings of mortgage securities detracted from performance during the past six months as spreads widened due to the pickup in volatility. Cash-backing strategies had a negative impact on returns, especially asset-backed securities as they continued to be marked down.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Global Bond Class 1 (began 10/15/05)		7.73	%	—	—	4.70	%		7.73	%	—	—	14.14	%
Global Bond Class NAV (began 10/15/05)		7.81	%	—	—	4.77	%		7.81	%	—	—	14.36	%
JP Morgan Global Government Bond Unhedged Index3,4,5		9.52	%	—	—	6.05	%		9.52	%	—	—	18.68	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  JP Morgan Global Government Bond Unhedged Index is an unmanaged index which measures the performance of leading government bond markets based on total return in U.S. currency. By including only traded issues, the Index provides a realistic measure of market performance for international investors. It is calculated by J.P. Morgan, and reflects reinvestment of all applicable dividends, capital gains and interest.

5  It is not possible to invest directly in an index.

22

Global Real Estate Fund
Subadviser: Deutsche Investment Management Americas Inc.
Portfolio Managers: John F. Robertson, Daniel Ekins, John Hammond, William Leung and John W. Vojticek

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks a combination of long-term capital appreciation and current income by primarily investing in equity securities of U.S. REITs, foreign entities with tax-transparent structures similar to REITs, and U.S. and foreign real estate operating companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	92.13
Consumer, Non-cyclical	3.87
Consumer, Cyclical	0.83
Industrial	0.02
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Global Real Estate Class NAV returned –22.75%, underperforming the –18.66% return of the EPRA NAREIT Global Unhedged U.S. Index.

Market Environment  •  Global real estate markets gave investors a rollercoaster ride on the heels of the credit crises that affected nearly all asset classes over the past 12 months. Early in the period, both Asia and Australia seemed to shrug off fears of a global recession, and the “decoupling” of these markets gave investors hope that there was a place to hide during the economic crisis. Australia fell first on the dramatic implosion of several companies, and then Asia began to falter on fears of overheated economies and high valuations within the region. Meanwhile some positives came in the western markets, as the U.S. and Europe (particularly the UK) rebounded as generalist investors moved back into the heavily downtrodden real estate securities markets. Relief (mostly Federal Reserve intervention) came, but was only able to help the U.S. markets, as weakening in both the commercial and residential property markets in Europe caused investor sentiment to be near all-time lows. As we entered the summer months, oil prices (and inflation concerns) soared globally, particularly in Asia, and all markets suffered. There was some relief towards the end of the reporting period, but weak economic data and slower growth expectations resulting from central bank intervention to address inflation drove investor expectations and sentiment. The market continues to wait for a catalyst to restore market liquidity and calm investor anxiety.

Overall, the Fund’s stock selection had a negative impact on performance. Strong stock selection in the Americas and Asia was beneficial. However, weaker stock selection in Australia and Europe detracted more. Overall, regional selection hurt performance. Over the period, our underweight positions in Europe and Australia had a neutral effect on results. However, our overweighting in underperforming Asian stocks and our underweight position in outperforming stocks in the Americas’ region detracted from performance.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Global Real Estate Class NAV (began 4/28/06)		–22.75	%	—	—	–3.83	%		–22.75	%	—	—	–8.74	%
EPRA NAREIT Global Unhedged U.S. Index3,4,5		–18.66	%	—	—	–2.71	%		–18.66	%	—	—	–6.21	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  EPRA NAREIT Global Unhedged U.S. Index is an unmanaged index. Designed to track the performance of listed real estate companies and REITs worldwide, the series acts as a performance measure of the overall market and is also suitable for use as the basis for investment products such as derivatives and Exchange Traded Funds (ETFs).

5  It is not possible to invest directly in an index.

23

High Income Fund
Subadviser: MFC Global Investment Management (U.S.), LLC
Portfolio Managers: Arthur N. Calavritinos, John F. Iles and Joseph Rizzo

INVESTMENT OBJECTIVE & POLICIES  •  To seek high current income with capital appreciation as a secondary goal by investing primarily in U.S. and foreign fixed-income securities that are rated BB/Ba or lower and unrated equivalents.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Cyclical	39.00
Communications	31.67
Basic Materials	5.36
Consumer, Non-cyclical	4.84
Industrial	3.87
Mortgage Securities	3.73
Utilities	3.05
Financial	2.73
Asset Backed Securities	0.74
Energy	0.58
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the High Income Class NAV returned –14.76%, underperforming the –1.02% return of the Merrill Lynch U.S. High Yield Master II Constrained Index.

Market Environment  •  During this period, the spread (additional yield) above U.S. Treasuries for high yield bonds widened from 455 basis points (4.55 percentage points) to 828 basis points. The widening of high yield bonds coincided with a 12.97% decline in the S&P 500 Index. Broad market declines were caused by economic uncertainty in an inflationary environment as well as a severe crisis in the financial sector that was sparked by a meltdown in U.S. housing prices. This led to a major sell-off in the mortgage market, which, when combined with the enormous supply of leveraged buyout (LBO) debt from 2007, led to drastic decreases in liquidity and risk tolerance. High yield debt was particularly susceptible to the market’s poor liquidity, and large LBO issues that had been recently priced at very aggressive levels underperformed by a wide margin.

The portfolio’s performance was greatly hampered by a sudden spike in oil prices that affected our larger airline investments. For most of the period, oil soared, peaking at $146 in July, almost twice its price from last August. By the end of August 2008, oil had slipped back to $115. We expect recent lower levels to hold and to become a large catalyst to performance when combined with the capacity reductions that the industry made during what we feel was a speculative bubble in oil. Other detractors from performance were bonds from gaming companies. Gaming was one of the worst performing industries over the period as investors anticipated a decrease in discretionary consumer spending combined with an increase in the supply of casinos across the country. Contributors to performance were bonds, convertible bonds and preferred shares issued by a satellite radio service and a cellular provider.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
High Income Class NAV (began 4/28/06)		–14.76	%	—	—	–0.97	%		–14.76	%	—	—	–2.27	%
Merrill Lynch U.S. High Yield Master II Constrained Index3,4,5		–1.02	%	—	—	3.12	%		–1.02	%	—	—	7.46	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index composed of U.S. currency high-yield bonds issued by U.S. and non-U.S. issuers.

5  It is not possible to invest directly in an index.

24

High Yield Fund
Subadviser: Western Asset Management Company
Portfolio Manager: S. Kenneth Leech, Steven A. Walsh, Mike Buchanan, Keith J. Gardner

INVESTMENT OBJECTIVE & POLICIES  •  To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk, by investing primarily in high yield securities, including corporate bonds, preferred stocks, U.S. government and foreign securities, mortgage-backed securities and loan assignments.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications	14.44
Consumer, Non-cyclical	13.34
Financial	13.12
Consumer, Cyclical	12.97
Energy	12.65
Utilities	7.95
Industrial	7.63
Basic Materials	7.54
Government	3.47
Technology	1.31
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the High Yield Class NAV returned –2.18%, underperforming the –1.43% return of the Citigroup High Yield Index.

Market Environment  •  Market performance was held back by the meltdown of the consumer cyclical industries and the financial industry, which fell steeply due to mortgage-related write-downs. Declining auto sales resulted in sharp drops in the stocks of American car manufacturers. Reduced traffic at major casinos hurt the gaming sector. As home construction slowed, the industry’s bonds declined in value. The Financial sector suffered severe stress as mortgage-related losses mounted. Excluding the Consumer Cyclical and Financial sectors, six of the remaining eight high yield sub-sectors had positive returns. Fundamentals in these healthier sectors generally supported positive performance for high yield companies as liquidity levels remained elevated and leverage levels below historical average. The riskier areas of the market were punished, including lower-rated issuers. In general, issues rated CCC and below returned –6.50% while the more U.S. Treasury-sensitive BB-rated issuers gained 2.33%.

Not surprisingly, default rates moved higher over the period. However, they remained below the 30-year annual average of 4.14%. New issue supply was lower than it has been since 2002. A lack of leveraged buyout (LBO) activity and the inability of issuers to refinance at a lower cost of funds kept issuance low.

The portfolio’s overweight to lower-rated high yield securities, which underperformed, detracted from relative performance. Issue selection aided relative performance as the top 10 overweights all outperformed and six of the portfolio’s top 10 underweights underperformed. Sector allocation aided relative performance due in large part to underweights to the struggling Financials and Consumer Cyclical sectors and overweights to Energy and Basic Industry.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
High Yield Class 1 (began 10/15/05)		–2.33	%	—	—	3.43	%		–2.33	%	—	—	10.19	%
High Yield Class NAV (began 10/15/05)		–2.18	%	—	—	3.50	%		–2.18	%	—	—	10.42	%
Citigroup High Yield Index3,4,5		–1.43	%	—	—	3.72	%		–1.43	%	—	—	11.24	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Citigroup High Yield Index is an unmanaged index which measures the performance of below-investment grade debt issued by corporations domiciled in the U.S. or Canada.

5  It is not possible to invest directly in an index.

25

Index 500 Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES  •  To approximate the aggregate total return of a broad-based U.S. domestic equity market index by investing at least 80% of the Fund’s net assets in (a) common stocks that are included in the S&P 500 Index and (b) securities that are believed to behave in a manner similar to the Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	20.80
Financial	14.94
Energy	13.75
Technology	11.74
Industrial	11.28
Communications	10.39
Consumer, Cyclical	7.44
Basic Materials	4.06
Utilities	3.30
Diversified	0.07
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Index 500 Class NAV returned –11.69%, underperforming the –11.14% return of the S&P 500 Index.

Market Environment  •  The U.S. economy’s growth was modest over the past 12 months and the economy, as measured by the gross domestic product (GDP), grew at an annualized rate of 2.2%, although recession fears persisted. The year-over-year headline inflation rate rose from 2.5% a year ago to 5.6% in August, primarily due to increased energy costs. The core inflation rate inched up to 2.5% from 2.2%. The Federal Reserve acted aggressively to forestall any weakening of the economy and lowered the benchmark federal funds rate from 5.25% to 2.0%, including a reduction of 125 basis points (1.25 percentage points) in January 2008. In August, the unemployment rate was at 5.7%, up from 4.6% a year earlier. The job market remained weak, with monthly job losses throughout 2008, suggesting a stagnating economy. The Conference Board’s Consumer Confidence Index has dropped steadily over the past year and was at 51 in August 2008, off from a high of 111 just a year ago.

For the period, Consumer Staples and Energy were the best performing sectors, returning 6.6% and 5.2%, respectively; Telecommunications and Financials were the worst performers, returning –20.0% and –34.7%, respectively.

Some of the best performing securities included Massey Energy, CF Industries and Southwestern Energy with returns of over 100%. E-Trade Financial and National City Corp were among the worst performers dropping more than 75%.

The fund invests in all the securities of the S&P 500 Index in the same proportion as in the index and hedges all cash with S&P 500 futures contracts. It is well-positioned to meet its goal of replicating the performance and portfolio characteristics of the S&P 500 Index.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Index 500 Class NAV (began 10/27/06)		–11.69	%	—	—	–2.33	%		–11.69	%	—	—	–4.26	%
S&P 500 Index3,4,5		–11.14	%	—	—	–2.28	%		–11.14	%	—	—	–4.17	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 27, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5  It is not possible to invest directly in an index.

26

International Equity Index Fund
Subadviser: SSgA Funds Management, Inc.
Portfolio Managers: Karl Schneider and Thomas Coleman

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks to track the performance of a broad-based equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging market countries. The Fund primarily invests in securities listed in the Morgan Stanley Capital International All Country World excluding U.S. Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*		% of Total
Financial		24.37
Consumer, Non-cyclical		13.42
Basic Materials		11.41
Energy		11.38
Industrial		10.77
Communications		9.23
Consumer, Cyclical		7.83
Utilities		5.37
Technology		3.44
Diversified		1.12
Country Weighting	% of Total
United Kingdom	15.29
Japan	14.79
France	7.07
Canada	6.93
Germany	6.43
Switzerland	5.32
Australia	4.36
Brazil	3.14
Hong Kong	2.91
Spain	2.76
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the International Equity Index Class NAV returned –13.58%, underperforming the –12.59% return of the MSCI AC World ex US Index.

Market Environment  •  International equity markets have struggled over the past 12 months. Mortgage weakness, private equity excess, overvaluation in China, and hedge fund leverage dominated the headlines in the latter part of 2007. Investors initially shrugged off these dislocations as natural consequences of imprudent risk taking, but August brought an unprecedented seizure in the global money markets. Central bankers were forced to provide emergency liquidity, calming the markets which then proceeded to move higher. But declines in US housing prices showed no signs of letting up, and subprime mortgage prices continued to fall. To make matters worse, investors began to wonder if slowing in China and other emerging markets would herald a broad downturn in global growth, and equities around the world began falling back from their peaks.

The turn of the calendar into 2008 unleashed a fresh burst of profit-taking, and the unwinding of rogue trading positions at a major French bank in mid-January caused alarm. The disarray was great enough to prompt an inter-meeting rate cut from the US Federal Reserve, and once again equity markets attempted to rebuild their sense of equilibrium. By mid-March, however, the complexity and illiquidity of many long-term mortgage assets made reasonable transactions all but impossible, and the major Wall Street house of Bear Stearns could no longer fund its own business. Investors have come to find out that Bear Stearns did not stand alone however, and the markets continued to suffer from strains in the financial sector.

All developed market countries except for Canada were down over the last year, and all but 10 emerging market countries declined for the period. Emerging markets once again outperformed developed markets. Latin America was the clear regional winner with a return of +10% versus –12% for Europe and –16% for Asia/Pacific.

All 10 sectors had negative returns. Financials (–24%) and Industrials (–20%) led the downward charge. Consumer Staples (flat) and Health Care (–6%) were the best performing sectors. U.S.-based investors were also helped as the U.S. dollar continued to fall against most currencies.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
International Equity Index Class NAV (began 10/29/05)		–13.58	%	—	—	9.62	%		–13.58	%	—	—	29.82	%
MSCI AC World ex US Index3,4,5		–12.59	%	—	—	10.77	%		–12.59	%	—	—	33.74	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  MSCI AC World ex US Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets excluding U.S. As of June 2006 the MSCI ACWI consisted of the following 47 developed and emerging market country indices: Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Korea, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Russia, Singapore Free, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, and the United Kingdom.

5  It is not possible to invest directly in an index.

27

International Opportunities Fund
Subadviser: Marsico Capital Management, LLC
Portfolio Manager: James G. Gendelman

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing at least 65% of its assets in common stocks of foreign companies that are selected for their long-term growth potential.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*		% of Total
Industrial		16.67
Consumer, Non-cyclical		14.60
Financial		13.49
Consumer, Cyclical		9.81
Basic Materials		7.29
Energy		7.21
Communications		6.45
Technology		5.34
Utilities		2.77
Diversified		0.92
Country Weighting	% of Total
United States	18.21
Switzerland	13.46
France	11.35
United Kingdom	9.54
Japan	8.43
Canada	7.69
Germany	5.67
Brazil	5.37
Denmark	4.25
Taiwan	3.46
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the International Opportunities Class NAV returned –10.50%, outperforming the –13.97% return of the MSCI EAFE Gross Index.

Market Environment  •  International equity performance in developed markets struggled during the year ended August 31, 2008, saddled by rapidly mounting concerns that a significant global growth slowdown could be unfolding. Losses in developed markets, as measured by the MSCI EAFE Index, were widespread — nine of the ten sectors of the MSCI EAFE Index posted negative returns.

The Fund’s stock selection within the Information Technology and Industrials sectors was a material positive contributor to performance results. Information technology company Research In Motion, Ltd., manufacturer of the Blackberry, was a leading individual holding. Industrials holdings were led by Dutch-based wind turbine manufacturer Vestas Wind Systems A/S.

During the reporting period, the Fund maintained, on average, an underweighted posture in the weaker-performing Financials sector than the benchmark index, which helped returns. Strong performance of Financials holdings, including Brazil bank Unibanco-Uniao de Bancos Brasileiros S/A and U.K-based Man Group PLC., further aided performance. In addition, stock selection in the Energy sector and the Health Care sector were additional areas of strength. Oil producer Petroleo Brasileiro SA was the largest individual contributor to performance for the period.

Performance detractors for the period included stock selection in the Utilities sector. France-based utility companies Veolia Environnement S.A. and Electricite de France S.A. were among the weakest-performers. Electricite de France S.A. was sold from the Fund. Stock selection and an overweighted posture in the weak-performing Consumer Discretionary sector hampered results. Hotel/casino operator Las Vegas Sands Corp., media company British Sky Broadcasting, and retailer PPR S.A., each had a material, negative impact on performance during the reporting period.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
International Opportunities Class 1 (began 10/15/05)		–10.51	%	—	—	10.73	%		–10.51	%	—	—	34.11	%
International Opportunities Class NAV (began 10/15/05)		–10.50	%	—	—	10.79	%		–10.50	%	—	—	34.33	%
MSCI EAFE Gross Index3,4,5		–13.97	%	—	—	7.20	%		–13.97	%	—	—	22.48	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

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

5  It is not possible to invest directly in an index.

28

International Small Cap Fund
Subadviser: Franklin Templeton Investment Corp.
Portfolio Manager: Bradley Radin

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation. The Fund will invest at least 80% of its net assets in securities issued by foreign companies which have total stock market capitalizations or annual revenues of $4 billion or less.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*		% of Total
Consumer, Cyclical		22.62
Industrial		18.10
Consumer, Non-cyclical		16.52
Financial		13.65
Communications		5.10
Basic Materials		5.03
Technology		3.59
Diversified		2.77
Utilities		2.22
Energy		0.83
Country Weighting	% of Total
United States	11.05
United Kingdom	9.95
Taiwan	9.11
Japan	8.53
South Korea	8.40
Canada	7.69
Australia	7.66
Hong Kong	7.46
Thailand	4.37
Netherlands	4.32
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the International Small Cap Class NAV returned –23.58%, underperforming the –19.87% return of the S&P/Citigroup Global ex U.S. less than $2 Billion Index.

Market Environment  •  The past 12 months were a challenging period for equity investors. Many of the trends underpinning the bull market of the past five years reversed sharply during the period. Developed market economies slowed while those in emerging markets remained more resilient. Increased demand and problematic supply drove up raw materials prices, most notably crude oil, which doubled during the year. The relative loss of confidence in the U.S. economy and financial system were significant factors that drove down the value of the U.S. dollar versus most other currencies, and further increased commodity prices, many of which are priced in U.S. dollars. Central banks were left with the delicate task of crafting policy that addressed rising inflation without stifling already slowing growth.

We remained focused on companies where we saw value in more defensive industries. Holdings that detracted from Fund performance relative to its benchmark included a leading Chinese logistics company that was hurt by a weakening economy dampening demand. A Taiwan-based global data networking vendor saw its shares fall in value as capital and consumer spending on information technology products slowed. Another detractor from relative performance was a U.K.-based leader in the chemicals industry that had its share price suffer due to the market’s focus on restructuring charges.

Several holdings helped relative performance during the period. An Australian business services provider enjoyed a rising share price following the sale of a division at a higher-than-expected price, the renewal of two major mining contracts and the appointment of a new CEO. A large U.K.-based retailer of computer software, video games, consoles and related products benefited from strong demand for Nintendo’s Wii and DS products amid widespread hardware shortages. The Fund’s cash position also boosted performance.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
International Small Cap Class 1 (began 10/15/05)		–23.67	%	—	—	5.61	%		–23.67	%	—	—	17.03	%
International Small Cap Class NAV (began 10/15/05)		–23.58	%	—	—	5.73	%		–23.58	%	—	—	17.40	%
S&P/Citigroup Global ex U.S. <$2 Billion Index3,4,5		–19.87	%	—	—	8.25	%		–19.87	%	—	—	25.64	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2008.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P/Citigroup Global ex U.S. <$2 Billion Index is an unmanaged index which follows an objective, free float-weighted, rules based methodology, capturing the broad investable opportunity set.

5  It is not possible to invest directly in an index.

29

International Small Company Fund
Subadviser: Dimensional Fund Advisors LP
Portfolio Manager: Karen E. Umland

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks long-term capital appreciation by investing at least 80% of its net assets in securities of small cap companies. The Fund will primarily invest its assets in equity securities of non-U.S. small companies of developed markets but may also invest in emerging markets.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*		% of Total
Industrial		23.40
Consumer, Non-cyclical		16.44
Consumer, Cyclical		14.07
Financial		12.82
Basic Materials		10.88
Energy		6.74
Communications		6.02
Technology		4.60
Diversified		1.95
Utilities		1.09
Country Weighting	% of Total
Japan	22.30
United Kingdom	16.50
Canada	10.12
Australia	8.75
Germany	6.02
France	5.19
Switzerland	4.30
Italy	3.22
Finland	2.51
United States	2.47
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the International Small Company Class NAV returned –19.32%, outperforming the –20.65% return of the MSCI EAFE Small Cap Gross Index.

Market Environment  •  Developed market equities performed very poorly in the one-year period, although the dollar-denominated returns of those markets were greatly bolstered by the U.S. dollar’s relative weakness. During the 12 months, the U.S. dollar depreciated against all major currencies except the British pound and the Canadian dollar. The overall impact of the U.S. dollar’s decline versus developed country currencies was to increase the dollar-denominated returns of developed market equities by about 3%.

Emerging markets also performed poorly in the period, although the dollar-denominated returns of emerging markets equities benefited from the weakness of the U.S. dollar relative to some major emerging markets currencies, such as the Mexican peso and the Brazilian real. The overall impact of currency fluctuations between the dollar and emerging markets currencies was to increase the dollar-denominated returns of emerging markets equities by about 1.7%. As measured by the MSCI Emerging Markets Index, the dollar-denominated return for emerging markets was –10.1%.

The portfolio’s exposure to Canada, which was the best performing developed market during the period, and other differences in allocation across regions boosted relative performance. Within regions, the portfolio’s baskets of securities generally outperformed those of the Index. The Fund’s overweighting to the smallest stocks and its allocation across the market capitalization segments detracted from relative performance. Composition differences within those segments, however, helped relative returns. The Fund’s avoidance of REITs, one of the worst-performing sectors from September 2007 to August 2008, and other differences in industry allocation helped relative performance. Security selection, especially in the Financials sector, added to relative performance as well.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
International Small Company Class NAV (began 4/28/06)		–19.32	%	—	—	–2.80	%		–19.32	%	—	—	–6.43	%
MSCI EAFE Small Cap Gross Index3,4,5		–20.65	%	—	—	–4.07	%		–20.65	%	—	—	–9.28	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  MSCI EAFE Small Cap Gross Index is an unmanaged index that is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the US & Canada. As of June 2006 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.

5  It is not possible to invest directly in an index.

30

International Value Fund
Subadviser: Templeton Investment Counsel, LLC
Portfolio Managers: Tucker Scott, Cindy Sweeting, Peter Nori and Neil Devlin

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital. The Fund invests at least 65% of its total assets in equity securities of companies located outside the U.S., including emerging markets.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*		% of Total
Communications		21.25
Financial		20.56
Consumer, Non-cyclical		16.38
Consumer, Cyclical		8.00
Industrial		8.29
Technology		8.03
Energy		7.54
Basic Materials		2.42
Diversified		1.45
Utilities		1.25
Country Weighting	% of Total
United Kingdom	26.88
France	10.72
Germany	7.41
United States	6.89
Taiwan	6.69
Japan	6.65
Switzerland	6.23
Netherlands	5.38
Italy	3.57
South Korea	3.16
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, International Value Class NAV returned –15.09%, underperforming the –13.97% return of the MSCI EAFE Gross Index.

Market Environment  •  Many of the trends underpinning the bull market of the past five years, including ample liquidity, soaring real estate prices, manageable inflation, and strengthening global economic growth, reversed sharply during the year. Growth slowed in developed economies although emerging markets showed resilience as increased demand, and supply shortages for industrial and agricultural commodities, drove up oil and most raw materials prices. Exacerbating this trend was declining investor confidence in the U.S. economy and financial markets, which contributed to a depreciating U.S. dollar and higher commodity prices.

Europe’s relative abundance of what we believe to be quality companies trading near historically low stock valuations attracted us to the region, though performance there suffered during a time when developed market value strategies remained largely out of favor. Eight of the Fund’s 10 biggest detractors from performance were European stocks, where stock selection in the U.K. hurt results relative to the MSCI EAFE Index. The Materials sector detracted from relative performance, where our underweighted allocation and focus on cyclically depressed paper companies and lack of metals and mining company stocks hindered relative performance. Similarly, our underweighting and stock selection in the Utilities sector detracted from performance. An overweighting in the Consumer Discretionary sector also hurt results amid softening economic conditions and consumer spending.

The Fund’s investments in Financials stocks fell in value but performed better than the benchmark, aided by our underweighted position in a sector that until recently relied heavily on leverage and risky loan growth to support record profitability. Stock selection and an overweighting in the Telecommunication Services sector contributed to performance, as investors seemed to recognize the long-term growth potential, balance sheet strength and global reach of the world’s leading mobile service providers. Our Industrials stocks also performed better than the benchmark’s despite negative absolute returns, and stock selection in Information Technology also aided relative returns.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
International Value Class 1 (began 10/15/05)		–15.08	%	—	—	6.51	%		–15.08	%	—	—	19.92	%
International Value Class NAV (began 10/15/05)		–15.09	%	—	—	6.56	%		–15.09	%	—	—	20.09	%
MSCI EAFE Gross Index3,5,6		–13.97	%	—	—	7.20	%		–13.97	%	—	—	22.48	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the International Value Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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

6  It is not possible to invest directly in an index.

31

Investment Quality Bond Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Thomas L. Pappas, Christopher L. Gootkind and Christopher A. Jones

INVESTMENT OBJECTIVE & POLICIES  •  To provide a high level of current income consistent with the maintenance of principal and liquidity. The Fund invests at least 80% of its net assets in bonds rated investment grade at the time of investment. The Fund will invest primarily in corporate bonds and U.S. government bonds with intermediate to longer term maturities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	19.19
U.S. Treasury Bonds	18.17
Mortgage Securities	11.07
Treasury Inflation-Protected Securities	8.05
Government	7.53
Communications	6.55
Utilities	4.42
Consumer, Non-cyclical	3.95
Asset Backed Securities	3.03
Federal National Mortgage Association	1.88
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Investment Quality Bond Class NAV returned +4.57%, underperforming the +5.39% return of the 50% Lehman Brothers Government Bond/50% Lehman Brothers Credit Bond Index Blend .

Market Environment  •  Financial markets suffered strong headwinds, during the one-year period, as investors contended with an array of troublesome news. The widespread credit crisis, deteriorating housing market, slowing global economy, rising unemployment, and mounting inflation concerns all challenged markets. Liquidity within fixed income remains challenged and investors remain risk averse.

The primary detractors from the Fund’s performance were the out-of-benchmark allocation to commercial mortgage-backed securities (CMBS) and security selection within the Investment Grade Credit sector. Specifically an overweight to debt issued by Financial companies including exposure to diversified financial firms hurt relative results. The CMBS sector struggled as recession concerns and increased shorting of the CMBX derivative index put downward pressure on all CMBS valuations.

The Fund’s non-dollar positions contributed to performance. In the second half of 2007, the fund was positioned for U.S. rates to fall versus Australian and Swedish rates on expectations that the U.S. economy would slow more quickly than these two economies. In 2008, the Fund was positioned for a steeper yield curve in Canada and for slower growth in the UK and New Zealand relative to the U.S. All of these positions contributed to relative results. The Fund’s underweight to corporate bonds, allocation to Treasury Inflation Protected Securities (TIPS), and exposure to rates in Brazil were also additive.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Investment Quality Bond Class 1 (began 10/15/05)		4.52	%	—	—	4.05	%		4.52	%	—	—	12.10	%
Investment Quality Bond Class NAV (began 10/15/05)		4.57	%	—	—	4.10	%		4.57	%	—	—	12.28	%
Lehman Brothers Government Bond/Lehman Brothers Credit Bond Index Blend3,4,5		5.39	%	—	—	4.43	%		5.39	%	—	—	13.48	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Government Bond Index and Lehman Brothers Credit Bond Index Blend-A blended index is used combining 50% of the Lehman Brothers Government Bond Index which is an unmanaged index that represents securities issued by the U.S. Government (i.e. securities in the Treasury and Agency indices); and 50% Lehman Brothers Credit Bond Index, which is an unmanaged index of publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC registered.

5  It is not possible to invest directly in an index.

32

Large Cap Fund
Subadviser: UBS Global Asset Management (Americas) Inc.
Portfolio Managers: John Leonard, Thomas Cole, Thomas Digenan and Scott Hazen

INVESTMENT OBJECTIVE & POLICIES  •  To seek to maximize total return, consisting of capital appreciation and current income. The Fund invests at least 80% of its net assets in equity securities of U.S. large capitalization companies as in the Russell 1000 Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	19.50
Financial	17.08
Technology	13.99
Industrial	11.79
Energy	10.48
Communications	10.47
Consumer, Cyclical	9.09
Utilities	4.41
Funds	2.32
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Large Cap Class NAV returned –11.99%, underperforming the –10.60% return of the Russell 1000 Index.

Market Environment  •  Overall portfolio underperformance was primarily driven by industry selection. Though the underweight to energy reserves was positive over the last three months, it was the primary detractor to results over the last 12 months. Market fundamentals do not, in our view, justify current oil prices. Demand growth for oil is slowing, while spare oil production capacity is rising. Yet the price of oil keeps rising — up more than 50% since the start of the year — due in part to speculation and the rampant growth of passive commodity investments. In addition, fears of a major supply interruption from the Middle East remains. We believe the price of oil will normalize downward, and energy stocks in general will underperform other areas of the US market, thus rewarding our position. There are pockets of relative value within the sector, but overall we are maintaining our underweight.

Though we were underweight in energy reserves, we identified opportunities within oil services. We focused on those companies that provide the logistical infrastructure for the many exploration and production projects that are in process or coming on line in the near term. These projects tend to be supported by national oil companies or large integrated energy companies that have the financial strength to continue funding such projects, regardless of the direction of oil prices over the next few years.

An overweight to railroads contributed to performance, as well. This overweight was driven by bottom-up stock-specific opportunities. We believe the market had been focusing on recent weaker utilization of railroads relative to trucking rather than the company’s long-term trend of solid volume growth. As Burlington continued to grow market share in a positive pricing.

Offsetting industry selection were positive contributions through strong security selection and an underweight to areas of the market that had until recently shown a high degree of positive price momentum. Less exposure to the largest companies in the market also benefited results over the year, as those stocks tended to lag smaller stocks.

Our large overweight to banks detracted from returns. Though these stocks did not perform as well as we expected, we continue to overweight banks. We find very attractive valuations within financials. In fact, based on our analysis, the sector as a whole now appears to be more than 40% underpriced — a degree of mispricing in the financial sector that we have only seen during the latter part of 1990 and the peak of the technology-media-telecom bubble in 2000. While we fully recognize that the headwinds facing the financial sector are significant and will likely last into the next year, we believe that the environment will eventually improve and could be reflected in stock prices more quickly than the market expects.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Large Cap Class 1 (began 10/15/05)		–12.04	%	—	—	3.57	%		–12.04	%	—	—	10.63	%
Large Cap Class NAV (began 10/15/05)		–11.99	%	—	—	3.63	%		–11.99	%	—	—	10.83	%
Russell 1000 Index3,4,5		–10.60	%	—	—	4.99	%		–10.60	%	—	—	15.06	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 1000 Index is an unmanaged index which measures the performance of the 1,000 largest companies in the Russell 3000 Index.

5  It is not possible to invest directly in an index.

33

Large Cap Value Fund
Subadviser: BlackRock Investment Management, LLC
Portfolio Managers: Robert C. Doll, Jr. and Daniel Hanson

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing in a diversified portfolio of equity securities of large-cap companies located in the U.S. At least 80% of the Fund’s net assets are invested in equity securities of large-capitalization companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy	25.31
Financial	16.57
Consumer, Non-cyclical	14.97
Industrial	13.04
Technology	8.87
Basic Materials	7.81
Consumer, Cyclical	7.62
Communications	4.58
Utilities	1.10
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Large Cap Value Class NAV returned –12.13%, outperforming the –14.66% return of the Russell 1000 Value Index.

Market Environment  •  The Fund’s relative performance benefited from a significant underweighting and stock selection in the Financials sector, as well as stock selection in the Industrials sector. The Financials sector’s second-quarter 2008 earnings (based on all financial companies in the S&P 500) were down approximately 90% relative to the second quarter of 2007. In industrials, the Fund’s two strongest performing securities were both in the machinery industry.

Conversely, security selection in Energy, and an underweight plus security selection in the Consumer Staples sector, detracted from the Fund’s relative return. Underperformance in Energy came largely during the first three months of 2008, when the Fund was overweight in refiners, which were hard hit by the skyrocketing price of oil, which greatly outpaced the price of their output products.

The broad-market indexes representing U.S. equity markets all fell during the past 12 months, with the representative Russell 1000 Index declining by 10.60%. Shares of large-cap growth companies outperformed large-cap value stocks, with the Russell 1000 Growth Index returning –6.77% versus the –14.66% return of the Russell 1000 Value Index.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Large Cap Value Class 1 (began 10/15/05)		–12.16	%	—	—	4.30	%		–12.16	%	—	—	12.88	%
Large Cap Value Class NAV (began 10/15/05)		–12.13	%	—	—	4.35	%		–12.13	%	—	—	13.05	%
Russell 1000 Value Index3,4,5		–14.66	%	—	—	4.37	%		–14.66	%	—	—	13.11	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 1000 Value Index is an unmanaged index containing those securities in the Russell 1000 Index with a less-than-average growth orientation.

5  It is not possible to invest directly in an index.

34

Mid Cap Index Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks to appropriate the aggregate total return of a mid-capitalization U.S. domestic equity market index by primarily investing in (a) common stocks that are included in the S&P MidCap 400 Index and (b) securities that are believed to behave in a manner similar to the index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	18.62
Industrial	17.77
Financial	14.20
Consumer, Cyclical	10.96
Energy	8.51
Technology	7.21
Utilities	6.49
Basic Materials	5.96
Communications	4.79
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Mid Cap Index Class NAV returned –4.61%, underperforming the –4.22% return of the S&P MidCap 400 Index.

Market Environment  •   The U.S. economy’s growth was modest over the past 12 months and the economy, as measured by the gross domestic product (GDP), grew at an annualized rate of 2.2%, although recession fears persisted. The year-over-year headline inflation rate rose from 2.5% a year ago to 5.6% in August, primarily due to increased energy costs. The core inflation rate inched up to 2.5% from 2.2%. The Federal Reserve acted aggressively to forestall any weakening of the economy and lowered the benchmark federal funds rate from 5.25% to 2.0%, including a reduction of 125 basis points (1.25 percentage points) in January 2008. In August, the unemployment rate was at 5.7%, up from 4.6% a year earlier. The job market remained weak, with monthly job losses throughout 2008, suggesting a stagnating economy. The Conference Board’s Consumer Confidence Index has dropped steadily over the past year and was at 51 in August 2008, off from a high of 111 just a year ago.

For the period, Energy and Materials were the best performing sectors, returning 25.8% and 11.2%, respectively; Telecommunications Services and Financials were the weakest sectors, returning –36.6% and –14.6%, respectively.

Some of the best performing securities included Perrigo Co and Netflix Inc. with returns of over 75%. PMI Group Inc. was the worst performer dropping more than 90%.

The fund invests in all the securities of the S&P MidCap 400 Index in the same proportion as in the index and hedges all cash with S&P 400 futures contracts. It is well-positioned to meet its goal of replicating the performance and portfolio characteristics of the S&P MidCap 400 Index.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Mid Cap Index Class NAV (began 10/29/05)		–4.61	%	—	—	6.86	%		–4.61	%	—	—	20.76	%
S&P MidCap 400 Index3,4,5		–4.22	%	—	—	7.43	%		–4.22	%	—	—	22.59	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P MidCap 400 Index is an unmanaged index of 400 domestic stocks of medium-sized companies.

5  It is not possible to invest directly in an index.

35

Mid Cap Intersection Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Doris T. Dwyer, David J. Elliot

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks long-term growth of capital by investing primarily in equity securities of medium-sized companies with significant capital appreciation potential.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	17.86
Industrial	16.62
Financial	14.14
Consumer, Cyclical	10.57
Energy	10.33
Technology	9.97
Basic Materials	7.23
Utilities	6.61
Communications	4.01
Diversified	0.46
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008 the Mid Cap Intersection Class NAV returned –10.68%, underperforming the –4.22% return of the S&P MidCap 400 Index.

Market Environment  •  US equity markets fell during the period, as concerns over continued economic weakness and rising inflation pressured returns downward. Small-cap stocks outperformed mid-cap stocks, which in turn outperformed large-cap stocks as measured by the Russell 2000, Russell MidCap, and Russell 1000 indices, respectively. Within the S&P 400 Midcap Index, Energy contributed the most to returns while Telecommunication Services stocks were the largest detractors from performance.

The Fund underperformed the S&P 400 Midcap Index as a result of weak security selection in the Industrials, Energy, Information Technology and Consumer Discretionary sectors. Within Industrials, our overweight to an employment services firm and automobile rental company, combined with an underweight to a mining equipment manufacturer, detracted most from relative returns. Negative returns were partially offset by strong security selection within the Materials sector.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Mid Cap Intersection Class NAV (began 5/1/07)		–10.68	%	—	—	–10.94	%		–10.68	%	—	—	–14.34	%
S&P MidCap 400 Index3,4,5		–4.22	%	—	—	–3.75	%		–4.22	%	—	—	–4.98	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since May 1, 2007.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P MidCap 400 Index is an unmanaged index of 400 domestic stocks of medium-sized companies.

5  It is not possible to invest directly in an index.

36

Mid Cap Stock Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Michael T. Carmen and Mario E. Abularach

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing at least 80% of the Fund’s net assets in equity securities of medium-sized companies with significant capital appreciation potential.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	24.20
Consumer, Cyclical	15.11
Industrial	14.47
Communications	10.33
Energy	9.74
Basic Materials	8.17
Technology	7.78
Financial	1.38
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Mid Cap Stock Class NAV returned –4.90%, outperforming the –7.57% return of the Russell Mid Cap Growth Index.

Market Environment  •  The one-year period was volatile and began with difficulties in the U.S. subprime market. The problems eventually spread throughout the credit markets leading to the near collapse of the investment bank Bear Sterns and the subsequent bailout by the Federal Reserve. The markets were further complicated by soaring energy prices and their impact on inflation and food prices. The Federal Reserve responded by cutting interest rates to avoid stalling growth.

The Fund’s relative outperformance during the period was largely the result of strong stock selection, particularly in the Consumer Discretionary, Energy and Information Technology sectors. The biggest individual contributions came from a fertilizer company, an energy company and a money transfer agency. Stock selection within Consumer Staples, Financials and Telecommunication Services detracted from performance. Individual holdings that lagged included an aircraft leasing firm, a derivatives broker, and an oil services business.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Mid Cap Stock Class 1 (began 10/15/05)		–4.91	%	—	—	11.48	%		–4.91	%	—	—	36.73	%
Mid Cap Stock Class NAV (began 10/15/05)		–4.90	%	—	—	11.52	%		–4.90	%	—	—	36.87	%
Russell Mid Cap Growth Index3,4,5		–7.57	%	—	—	6.90	%		–7.57	%	—	—	21.20	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell Mid Cap Growth Index is an unmanaged index that contains those stocks from the Russell Mid Cap Index with a greater than average growth orientation.

5  It is not possible to invest directly in an index.

37

Mid Cap Value Fund
Subadviser: Lord, Abbett & Co. LLC
Portfolio Managers: Howard E. Hansen and Jeff Diamond

INVESTMENT OBJECTIVE & POLICIES  •  To seek capital appreciation. The Fund invests primarily in equity securities which it believes to be undervalued in the marketplace. Under normal market conditions, at least 80% of its net assets will consist of investments in mid-sized companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications	19.96
Consumer, Non-cyclical	18.12
Industrial	14.06
Utilities	9.91
Consumer, Cyclical	9.52
Financial	7.49
Energy	6.19
Basic Materials	3.92
Technology	2.37
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Mid Cap Value Class NAV returned –16.99%, underperforming the –10.44% return of the Russell Midcap Value Index.

Market Environment  •  The largest detractor during the period was weak stock selection within the poorly performing Consumer Discretionary sector. A directory publisher tumbled after management lowered guidance for all of 2008, resulting from a decline in advertisement sales. Disappointing stock selection within the Utilities sector also hurt performance, as did the portfolio’s underweighting within the soaring Integrated Oils sector, which benefited from the rising price of oil, which had topped $140 per barrel by July.

During the period, the portfolio strongly benefited from its relative underweighting within the struggling Financial Services sector, especially within regional banks. Within the Other Energy sector, the portfolio benefited from positive stock selection and a relative overweight position. Several holdings posted impressive gains. An oil and natural gas exploration and production company benefited from the sharp rise in oil prices. The top performer in the portfolio overall was a fertilizer producer that profited from the rising prices and robust global demand for potash and phosphate.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Mid Cap Value Class 1 (began 10/15/05)		–17.03	%	—	—	1.29	%		–17.03	%	—	—	3.76	%
Mid Cap Value NAV (began 10/15/05)		–16.99	%	—	—	1.36	%		–16.99	%	—	—	3.95	%
Russell Midcap Value Index3,4,5		–10.44	%	—	—	5.86	%		–10.44	%	—	—	17.81	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index.

5  It is not possible to invest directly in an index.

38

Mid Cap Value Equity Fund
Subadviser: RiverSource Investments, LLC
Portfolio Managers: Steve Schroll, Laton Spahr, Warren Spitz and Paul Stocking

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital. The Fund invests at least 80% of its net assets in equity securities of medium-sized companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Industrial	19.46
Financial	16.45
Consumer, Cyclical	16.36
Energy	13.84
Technology	7.30
Consumer, Non-cyclical	6.89
Basic Materials	6.51
Communications	4.21
Utilities	3.91
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Mid Cap Value Equity Class NAV returned –11.17%, underperforming the –10.44% return of the Russell Midcap Value Index.

Market Environment  •  The annual period was dominated by skyrocketing oil and gasoline prices, the after-shocks of the mortgage market collapse, ongoing deterioration of the housing market and concerns about whether the U.S. economy was or was not in a recession. Both mid- and small-cap stocks outperformed large-cap stocks, and growth outpaced value equities for the period.

Against this challenging backdrop, the portfolio’s significant overweight in the Oil Services sector helped performance relative to the benchmark. Strong performers included two international offshore and land contract drillers and an integrated energy company. Financials was one of the worst performing sectors for the period and the Fund’s significant underweight helped performance. Lastly, stock selection in the materials and processing industry contributed during the period.

Detracting from performance was stock selection in the Transportation sector. The portfolio’s underweight in the integrated oils industry also detracted from performance as the industry was one of the strongest performing areas. Lastly, the portfolio’s managed care holdings in the Health Care sector lagged and hurt performance.

During the period, we reduced the portfolio’s allocation to the Utilities sector, redeploying the assets into Consumer Discretionary holdings. In addition, we reduced selected portfolio positions in Health Care and Producer Durables. We believe the market volatility of the past year is likely to persist through the end of 2008. As a result, we anticipate maintaining the portfolio’s underweight in Financial Services, recognizing the possibility of further downside risk to that sector. Conversely, we anticipate maintaining meaningful overweights within the cyclical portions of the economy, such as the Industrials and Energy sectors.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Mid Cap Value Equity Class NAV (began 4/28/06)		–11.17	%	—	—	0.85	%		–11.17	%	—	—	2.00	%
Russell Midcap Value Index3,4,5		–10.44	%	—	—	0.58	%		–10.44	%	—	—	1.38	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value Index.

5  It is not possible to invest directly in an index.

39

Natural Resources Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Karl E. Bandtel and James A. Bevilacqua

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks long-term total return by investing primarily in equity and equity-related securities of natural resource-related companies worldwide.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy	68.52
Basic Materials	25.33
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Natural Resources Class NAV returned +7.08%, outperforming the +1.89% return of the Combined Index.

Market Environment  •  Global equity markets struggled during the one-year period as continued distress in the U.S. credit markets plagued the financial industry. The markets were further complicated by steadily rising food and energy prices, which raised inflationary concerns around the globe and created uncertainty about worldwide monetary policy. This particular environment, however, favored many Natural Resource companies whose fundamentals are directly related to energy prices and rising inflation.

Performance benefited from security selection within the Oil & Gas industry and an underweight position to the Paper & Forest Products industry. Strong performance was driven by a couple of individual oil and gas companies, and a coal and methane gas producer. An overweight position in Containers & Packaging and poor security selection in Metals & Mining detracted from performance. An oil refining company, a bauxite mining and aluminum refining firm, and a South African gold mining company were the individual holdings that detracted the most from performance.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Natural Resources Class 1 (began 10/15/05)		7.02	%	—	—	19.59	%		7.02	%	—	—	67.39	%
Natural Resources Class NAV (began 10/15/05)		7.08	%	—	—	19.65	%		7.08	%	—	—	67.62	%
Combined Index3,4,5		1.89	%	—	—	14.30	%		1.89	%	—	—	47.70	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  The Combined Index is comprised of 60% MSCI World Energy Index, 30% MSCI World Metals & Mining Index and 10% MSCI World Paper & Forest Products Index.

5  It is not possible to invest directly in an index.

40

Optimized All Cap Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Harpreet Singh, Chris Hensen, Brett Hryb, Rhonda Chang and Noman Ali

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing at least 65% of the Fund’s assets in equity securities of U.S. companies. The Fund will focus on equity securities of U.S. companies across the three market capitalization ranges of large, mid and small.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	21.29
Technology	15.20
Industrial	14.97
Financial	14.16
Energy	13.53
Consumer, Cyclical	7.21
Communications	5.97
Basic Materials	3.69
Utilities	3.48
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Optimized All Cap Class A returned –15.38%, underperforming the –10.22% return of the Russell 3000 Index.

Market Environment  •  The Russell 3000 declined by just over 10% during the period, suffering its worst 12-month decline since 2002. The market downturn was driven by continued weakness in the housing market and the resulting credit market crisis, which has claimed a number of victims, including Bear Sterns. The Financial sector was the worst performing sector over the period, declining by nearly 33%. Economic numbers were mixed. All housing-related data continued to deteriorate, the unemployment rate increased, inflation moved higher and retail sales slowed. However, overall gross domestic product (GDP) performed better than expected due to the contribution from exports. The price of oil reached an all-time high due to tight supplies and strong demand from emerging economies.

The best performing sectors were Basic Materials, Energy, Consumer Staples and Utilities. These four sectors were the only ones that posted positive returns. Basic Materials and Energy stocks benefited from record-high commodity prices, while Consumer Staples gained from strong growth outside the U.S. and the declining U.S. dollar. The worst performing sectors were Financials, Durables and Telecommunications. Small-cap stocks outperformed large-cap stocks because there are more cyclical stocks and fewer financial stocks in the small-cap segment.

The Fund lagged the Russell 3000 Index. Stock selection within Technology and Consumer Services hurt performance, while stock selection within Financials, Merchandisers and Telecommunications boosted performance. Underweights in some of the larger Financials and overweight positions in some of the globally exposed restaurants within Merchandisers contributed to returns.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Optimized All Cap Class A (began 7/28/06)		–15.38	%	—	—	0.64	%		–15.38	%	—	—	1.34	%
Optimized All Cap Class B (began 7/28/06)		–15.97	%	—	—	–0.05	%		–15.97	%	—	—	–0.11	%
Optimized All Cap Class C (began 7/28/06)		–15.97	%	—	—	–0.05	%		–15.97	%	—	—	–0.11	%
Optimized All Cap Class I (began 7/28/06)		–15.08	%	—	—	0.96	%		–15.08	%	—	—	2.01	%
Optimized All Cap Class NAV (began 6/12/08)		—		—	—	—			—		—	—	–4.15	%
Russell 3000 Index (began 7/28/06)3,5,6		–10.22	%	—	—	2.64	%		–10.22	%	—	—	5.61	%
Russell 3000 Index (began 6/12/08)3,5,6		—		—	—	—			—		—	—	–3.63	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since July 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Optimized All Cap Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

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

41

Real Estate Equity Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: David M. Lee

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks long-term growth through a combination of capital appreciation and current income by primarily investing in the equity securities of real estate companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial		89.62
Consumer, Cyclical		4.14
Basic Materials		1.40

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Real Estate Equity Class NAV returned –9.91%, underperforming the –8.64% return of the DJ Wilshire REIT Index.

Market Environment  •  The year began with promise following 2007’s disappointing real estate correction. Unfortunately, the deepening housing crisis weighed heavily on the market. However, the correction in real estate securities resulted in higher dividend yields and more attractive valuations. Demand is weakening in the current economic environment, yet lower supply appears to bode well for the long term.

The economy is weak due to the prolonged impact of the credit crisis and high energy costs. Most major real estate segments posted negative returns due to a tighter liquidity environment, restrictive underwriting standards, and weak consumer spending. While credit markets were tight, we were pleased to see some financings in recent months.

Office stocks were negative as concerns mounted about consumer and commercial weakness. Regional malls were also weak due to investor concerns about sluggish consumer spending. Lodging was the worst performing group. The protracted downturn led to lower expectations at these companies, and investors punished them. Apartments had been one of the worst performers, but now appear to be benefiting from the current housing crisis, as landlords report fewer departures into single-family homes.

The portfolio lagged the benchmark but outpaced the broad market for the period. Sluggish consumer spending, disappointing employment data, and weak economic growth weighed on performance. An overweight and stock selection in the “other real estate” segment was the largest contributor to performance. Solid stock selection in industrial REITs contributed, but that was partially offset by an overweight in the weak group.

On a negative note, our avoidance of health care REITs was the primary detractor from relative performance. We have historically chosen not to own pure-play health care REITs for a number of reasons. First, they tend to have high industry concentration, which adds to risks. Second, they are typically special-use buildings with less adaptability in the event of tenant vacancy and are often located in areas not considered prime. Finally, health care REITs possess characteristics similar to bonds, while we seek equity-like returns in our portfolio.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Real Estate Equity Class NAV (began 4/28/06)		–9.91	%	—	—	0.12	%		–9.91	%	—	—	0.27	%
DJ Wilshire REIT Index3,5,6		–8.64	%	—	—	–0.63	%		–8.64	%	—	—	–1.46	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Real Estate Equity Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  DJ Wilshire REIT Index is an unmanaged index consisting of actively traded real estate investment trusts.

6  It is not possible to invest directly in an index.

42

Real Estate Securities Fund
Subadviser: Deutsche Investment Management Americas Inc.
Portfolio Managers: Jerry W. Ehlinger, John F. Robertson, John W. Vojticek and Asad Kazim

INVESTMENT OBJECTIVE & POLICIES  •  To seek a combination of long-term capital appreciation and current income by primarily investing in equity securities of REITs and real estate companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial		97.34
Consumer, Cyclical		0.46

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Real Estate Securities Class 1 returned –7.58%, outperforming the –7.66% return of the Morgan Stanley REIT Index.

Market Environment  •  Throughout the annual period, REITs displayed meaningful volatility on the back of the credit crunch that brought the debt markets to a halt. Federal Reserve rate intervention coupled with the cheapest valuations relative to net asset value in six years led to periods of strong performance, but credit markets continued to be weak throughout the period. Reverberations of the sub-prime mortgage fallout found their way into all areas of the credit and financial markets. These stresses became clearly evident in the economic data as employment worsened and home prices and sales continued to decline through most of the period. Relief (mainly more Fed intervention) came in March, but that was quickly forgotten as oil steadily moved higher, creating heightened concerns for the consumer and increased fears of global inflation. This somewhat reversed itself for a time. However, weak economic data and concerns over growth continued through the end of the period.

Overall, the Fund’s stock selection aided results. Performance was strong among holdings in the Office, Retail, Hotels, and Self Storage sectors, while weaker stock selection in the Apartments and Industrial sectors detracted from performance. Stock selection in the Healthcare sector was slightly positive. Overall, sector selection had a neutral impact. Our overweight to the outperforming Apartments sector and our underweight positions in the underperforming Hotels and Retail sectors helped returns. However, our underweight position in the robust Office sector and overweight position in the weak Regional Malls sector detracted from performance. We also had slight underweight positions in Health Care and Self Storage, the two sectors that significantly outperformed, which detracted from performance. These sectors did well primarily because they were seen as defensive sectors during a period of market turmoil. The worst performing sectors were Hotels, which suffered from concerns over decreased consumer and business spending, and Industrial, which was hurt by continued downward revisions of economic growth.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2007		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Real Estate Securities Class 1 (began 10/15/05)		–7.58	%	—	—	8.43	%		–7.58	%	—	—	26.23	%
Morgan Stanley REIT Index3,4,5		–7.66	%	—	—	7.79	%		–7.66	%	—	—	24.10	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Morgan Stanley REIT Index is an unmanaged index consisting of the most actively traded real estate investment trusts.

5  It is not possible to invest directly in an index.

43

Real Return Bond Fund
Subadviser: Pacific Investment Management Company LLC
Portfolio Manager: Mihir Worah

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks maximum real return, consistent with preservation of real capital and prudent investment management, by investing at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Treasury Inflation-Protected Securities		57.99
Financial		12.26
Federal Home Loan Mortgage Corp.		7.80
Federal National Mortgage Association		5.03
Government		2.58
Asset Backed Securities		2.51
Mortgage Securities		1.55
Energy		0.80
Consumer, Non-cyclical		0.54
Consumer, Cyclical		0.43

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Real Return Bond Class NAV returned +12.63%, outperforming the +11.90% return of the Lehman Brothers Global Real U.S. TIPS Index.

Market Environment  •  The credit crisis that began in the summer of 2007 continued to weigh on the financial markets throughout the year. Government bond yields fell worldwide amid a flight to the highest quality assets. To forestall a U.S. recession and unfreeze credit markets, the Federal Reserve lowered the federal funds rate from 5.25% to 2.00% before pausing in April due to concerns about inflation. The Fed also took several unconventional steps. It made several hundred billion dollars of liquidity facilities available against an expanded range of collateral, opened its discount window to investment banks, and arranged the rescue of Bear Stearns, a brokerage firm weighed down by subprime-related exposure. The U.S. yield curve remained steep. Agency mortgage-backed securities (MBS) continued to underperform Treasuries, driven by the liquidity crisis. Dealers struggled with regulatory capital constraints and the looming threat of further downgrades to positions; they may soon be forced to unwind more risk. Price volatility remains high and liquidity extremely poor across the capital structure.

Emphasis on shorter maturities in the U.S., U.K., and Euroland helped returns over the year as yield curves steepened. An average underweight in U.S. duration detracted from performance as U.S. yields fell. Favoring Treasury Inflation Protected Securities (TIPS) over U.S. nominal bonds in the first half helped returns as TIPS outpaced nominal bonds on strong inflation accruals as food prices increased. Exposure to emerging market currencies helped returns as the U.S. dollar weakened amid slowing growth and falling rates. An overweight to mortgages hurt returns as they lagged like-duration Treasuries amid rising global volatility. An overweight position in corporates, high yield and emerging markets bonds detracted from performance as all three sectors underperformed Treasuries.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Real Return Bond Class 1 (began 10/15/05)		12.64	%	—	—	5.75	%		12.64	%	—	—	17.47	%
Real Return Bond Class NAV (began 10/15/05)		12.63	%	—	—	5.76	%		12.63	%	—	—	17.49	%
Lehman Brothers Global Real U.S. TIPS Index3,4,5		11.90	%	—	—	6.41	%		11.90	%	—	—	19.59	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Global Real U.S.TIPS Index is an unmanaged index that consists of Inflation-Protection securities issued by the U.S.Treasury.

5  It is not possible to invest directly in an index.

44

Small Cap Fund
Subadviser: Independence Investments, LLC
Portfolio Manager: Charles S. Glovsky

INVESTMENT OBJECTIVE & POLICIES  •  To seek maximum capital appreciation consistent with reasonable risk to principal by investing at least 80% of the Fund’s net assets in equity securities of small-cap companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	25.08
Consumer, Cyclical	16.51
Technology	14.73
Financial	12.11
Industrial	8.16
Communications	5.96
Funds	5.03
Energy	4.15
Basic Materials	2.83
* Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Small Cap Class NAV returned –11.22%, underperforming the –5.48% return of the Russell 2000 Index.

Market Environment  •  While small cap U.S. equities ended the past 12 months down a modest –5.48%, it was far from an ordinary period. The real estate bubble and related credit crisis weighed on the market through August 2007, causing that index to tumble. During the market sell-off, quantitative hedge fund redemptions caused major dislocations. The “Fed” action helped investors regain confidence and market volatility receded for a period. But in the fourth quarter of 2007 continued write-downs from brokerage firms, financial guarantors and mortgage lenders affected the market as a whole, causing a retightening of the lending market. This negative effect on lending reignited fears of a recession and concerns about consumer spending. This continued into the first quarter of 2008, down sharply amid worsening news from the financial sector and signs of broader economic weakening. The Fed’s facilitation of the Bear Stearns buyout and the tax rebate program rallied stocks from March to May but the battered home market, continued balance sheet problems in the financial sector, rising national unemployment and rising inflation caused markets to fall once more. In summary, this has been a truly see-saw period for the markets, one in which recognition of fundamentals has been overshadowed by market fears — a difficult environment for managers like Independence, who focus on companies with strong long term fundamentals.

Underexposure to both the financial and consumer service sectors benefitted the portfolio, but individual stock selection was the major contributor to underperformance. In healthcare, holdings in Nighthawk Radiology, Inventiv Health and Cantel Industries detracted from performance. Stocks within technology also detracted from performance, including Secure Computing and Radiant Systems. Stocks which added to performance included Fuel Systems Solutions and G-III Apparel Group within the consumer cyclical sector and Goodrich Petroleum within the energy sector. The small cap sector was often led by momentum stocks, as investors paid up for growth at any price.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Small Cap Class 1 (began 10/15/05)		–11.25	%	—	—	1.13	%		–11.25	%	—	—	3.30	%
Small Cap Class NAV (began 10/15/05)		–11.22	%	—	—	1.19	%		–11.22	%	—	—	3.45	%
Russell 2000 Index3,4,5		–5.48	%	—	—	6.84	%		–5.48	%	—	—	20.99	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 2000 Index is an unmanaged index composed of 2,000 U.S. small capitalization stocks.

5  It is not possible to invest directly in an index.

45

Small Cap Index Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks to approximate the aggregate total return of a small-cap U.S. domestic equity market index that primarily invests in (a) common stocks that are included in the Russell 2000 Index and (b) securities that are believed to behave in a manner similar to the Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical		18.76
Financial		16.04
Industrial		13.71
Consumer, Cyclical		10.29
Technology		8.17
Communications		6.88
Energy		5.65
Basic Materials		3.33
Utilities		3.07

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Small Cap Index Class NAV returned –5.60%, underperforming the –5.48% return of the Russell 2000 Index.

Market Environment  •  The U.S. economy’s growth was modest over the past 12 months and the economy, as measured by the gross domestic product (GDP), grew at an annualized rate of 2.2%, although recession fears persisted. The year-over-year headline inflation rate rose from 2.5% a year ago to 5.6% in August, primarily due to increased energy costs. The core inflation rate inched up to 2.5% from 2.2%. The Federal Reserve acted aggressively to forestall any weakening of the economy and lowered the benchmark federal funds rate from 5.25% to 2.0%, including a reduction of 125 basis points (1.25 percentage points) in January 2008. In August, the unemployment rate was at 5.7%, up from 4.6% a year earlier. The job market remained weak, with monthly job losses throughout 2008, suggesting a stagnating economy. The Conference Board’s Consumer Confidence Index has dropped steadily over the past year and was at 51 in August 2008, off from a high of 111 just a year ago.

For the period, Russell Other and Integrated Oils were the best performing sectors, returning 84.9% and 60.7%, respectively; Auto & Transportation and Consumer Discretionary were the worst performers, returning –17.9% and –16.9%, respectively.

Some of the best performing securities included James River Coal which rose almost eight-fold and Sequenom Inc. with a return of over 360%. Idearc Inc and RH Donnelley Corp. were among the worst performers dropping more than 90%.

The fund invests in an optimized basket consisting of about 1800 securities of the Russell 2000 Index and hedges all cash with Russell 2000 futures contracts. It is well-positioned to meet its goal of replicating the performance and portfolio characteristics of the Russell 2000 Index.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Small Cap Index Class NAV (began 10/29/05)		–5.60	%	—	—	6.26	%		–5.60	%	—	—	18.81	%
Russell 2000 Index3,5,6		–5.48	%	—	—	6.79	%		–5.48	%	—	—	20.53	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Small Cap Index Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Russell 2000 Index is an unmanaged index composed of 2,000 U.S. small capitalization stocks.

6  It is not possible to invest directly in an index.

46

Small Cap Opportunities Fund
Subadviser: Munder Capital Management, LLC and Invesco Aim Capital Management, Inc.
Portfolio Managers: Robert E. Crosby, Julie R. Hollinshead, John P. Richardson, Juliet S. Ellis, Juan R. Hartsfield and Clay Manley

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation by investing at least 80% of the Fund’s net assets in equity securities of small-capitalization companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial		20.22
Industrial		18.25
Consumer, Non-cyclical		15.60
Consumer, Cyclical		9.70
Communications		9.15
Energy		7.95
Technology		6.52
Basic Materials		3.43
Utilities		3.08

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Small Cap Opportunities Class NAV returned –18.04%, underperforming the –5.48% return for the Russell 2000 Index.

Market Environment  •  The low quality, low price, low market-cap rally in August compounded the highly volatile markets of the past 12 months for active small-cap managers who have been left behind by their benchmarks. August was the second month in a row of poor relative performance, with less than 19% of small-cap value funds outperforming the Russell 2000 Value Index. Thus far in the third calendar quarter, less than 8% of small-cap value funds have topped their index.

The portfolio’s lagging performance was primarily attributable to weak stock selection, particularly in the Financials sector. Holdings in the Industrials sector also had a significant negative impact on relative performance. The weakness in these two sectors more than offset positive stock selection in the Health Care, Consumer Staples and Utilities sectors. Some of the weakness in active manager performance in July and August could be attributed to the Russell indices rebalance. Without the rebalance on June 27, the Russell 2000 Index would have gained 4.3% over the last two months versus 6.1% for the new benchmark. The difference in performance can be attributed to the recent weakness in Energy and strength in Financials, Health Care, and Industrials. We also see that the smallest of the small companies have performed well recently along with the poor earnings companies and low-priced stocks.

Despite the difficult environment for small-cap stocks and the portfolio’s lagging performance for the year ended August 31, 2008, the portfolio’s fundamentals have held up well relative to both small-cap stocks and large-cap stocks. Earnings over the last 12 months have risen by 7.8%, relative to –1.1% for the Russell 2000 Value Index. We believe the combination of strong earnings growth and declining stock prices has led to attractive valuations for the portfolio, both on an absolute and relative basis. At period end, the portfolio’s trailing price-to-earnings (P/E) ratio, a widely used measure of valuation, was 14.2, compared to 16.2 for the Russell 2000 Value Index, for the past 12 months.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Small Cap Opportunities Class 1 (began 10/15/05)		–18.09	%	—	—	–2.25	%		–18.09	%	—	—	–6.35	%
Small Cap Opportunities Class NAV (began 10/15/05)		–18.04	%	—	—	–2.21	%		–18.04	%	—	—	–6.22	%
Russell 2000 Index3,4,6,7		–5.48	%	—	—	6.84	%		–5.48	%	—	—	20.99	%
Russell 2000 Value Index3,5,6,7		–7.52	%	—	—	5.60	%		–7.52	%	—	—	16.99	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 2000 Index is an unmanaged index composed of 2,000 U.S. Small Capitalization Stocks.

5  Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

6  Since June 2008, the index changed from Russell 2000 Value Index to Russell 2000 Index to more accurately reflect the investment objective of the Small Cap Opportunities Fund.

7  It is not possible to invest directly in an index.

47

Small Company Fund
Subadviser: American Century Investment Management, Inc.
Portfolio Managers: Wilhelmine von Turk, Thomas P. Vaiana, Brian Ertley and Melissa Fong

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital growth by investing at least 80% of the Fund’s net assets in stocks of companies that have market capitalization not greater than that of the largest company in the S&P SmallCap 600 Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Cyclical		18.48
Industrial		17.69
Consumer, Non-cyclical		15.33
Financial		14.47
Technology		12.85
Energy		7.61
Communications		4.39
Utilities		2.73
Basic Materials		2.42

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Small Company Class NAV returned –11.90%, underperforming the –6.20% return of the S&P Small Cap 600 Index.

Market Environment  •  The broad U.S. equity indexes suffered double-digit declines for the 12-month period in an environment of exceptionally high market volatility. One of the main factors contributing to the stock market chaos was a meltdown in the subprime mortgage market, which led to a persistent liquidity crunch in the credit markets. In addition, the U.S. economy teetered on the brink of recession amid a deteriorating housing market, rising unemployment, and weaker consumer spending. Other than uneven but noteworthy rallies in the fall of 2007 and the spring of 2008, the stock market sustained its downward trajectory throughout the 12 months. Small-cap stocks held up best overall, outpacing their large and mid-cap counterparts.

Within the portfolio, Materials stocks were far and away the best contributors to absolute performance. Utilities and Energy also generated positive results, while Information Technology and Consumer Discretionary stocks suffered the largest declines during the period. Stock selection in the Information Technology sector contributed the most to the portfolio’s underperformance of its benchmark index, particularly among semiconductor manufacturers and electronic equipment makers. Stock choices in the Energy and Health Care sectors also detracted notably from relative results. On the positive side, stock selection added value in the Materials sector, led by chemicals producers and metals and mining companies. The portfolio’s Consumer Discretionary stocks also contributed to relative performance, particularly apparel makers and specialty retailers.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Small Company Class 1 (began 10/15/05)		–11.92	%	—	—	–0.77	%		–11.92	%	—	—	–2.22	%
Small Company Class NAV (began 10/15/05)		–11.90	%	—	—	–0.73	%		–11.90	%	—	—	–2.08	%
S&P Small Cap 600 Index3,4,5		–6.20	%	—	—	4.54	%		–6.20	%	—	—	13.84	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P Small Cap 600 Index is an unmanaged index composed of 600 U.S. small-sized companies.

5  It is not possible to invest directly in an index.

48

Small Company Growth Fund
Subadviser: AIM Capital Management, Inc.
Portfolio Managers: Juliet S. Ellis, Juan R. Hartsfield and Clay Manley

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing at least 80% of the Fund’s net assets in securities of small-capitalization companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical		26.49
Industrial		16.17
Technology		14.23
Consumer, Cyclical		11.50
Energy		7.09
Communications		5.73
Financial		5.68
Utilities		1.71
Basic Materials		0.56

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Small Company Growth Class NAV returned –6.57%, underperforming the –3.79% return of the Russell 2000 Growth Index.

Market Environment  •  Major U.S. equity markets had negative performance during the fiscal year due to ongoing concerns about the credit markets, weakness in the housing market, rising energy and food prices and a deteriorating outlook for corporate earnings. In this environment, indexes measuring the performance of large-, mid- and small-cap stocks were all in negative territory, with small-cap stocks generally outperforming mid- and large-cap stocks. Overall, growth-style stocks outperformed value stocks.

The Fund underperformed the benchmark by the widest margin in the Information Technology sector, driven by both stock selection and an overweight position. A couple of semiconductor holdings were among the key detractors from performance. The Fund also trailed the benchmark in the Industrials, Health Care and Financials sectors. Underperformance in the Industrials and Financials sectors were caused by weak stock selection. Underperformance in the Health Care sector was the result of poor stock selection and an underweight position in an area with good benchmark results.

Some of these weak returns were offset by outperformance in other sectors, including Consumer Staples and Utilities. Strength in these two sectors was largely a result of stock selection.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		��	5-year	10-year	Since inception 2
Small Company Growth Class NAV (began 10/29/05)		–6.57	%	—	—	7.95	%		–6.57	%		—	—	24.38	%
Russell 2000 Growth Index3,4,5		–3.79	%	—	—	7.26	%		–3.79	%		—	—	22.13	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

5  It is not possible to invest directly in an index.

49

Small Company Value Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Preston G. Athey

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term growth of capital by investing at least 80% of the Fund’s net assets in companies with market capitalizations that do not exceed the maximum market capitalization of any security in the Russell 2000 Value Index at the time of purchase. The Fund also invests in small companies whose common stocks are believed to be undervalued.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Industrial		23.58
Financial		15.87
Consumer, Non-cyclical		13.52
Consumer, Cyclical		9.07
Energy		8.56
Basic Materials		7.69
Technology		5.99
Utilities		3.49
Communications		2.62
Funds		0.63

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Small Company Value Class NAV returned +1.20%, outperforming the –7.52% return of the Russell 2000 Value Index.

Market Environment  •  The past 12 months were turbulent for equity markets, primarily due to the consequences of the subprime mortgage crisis and rising prices for commodities, particularly oil. In addition, high headline inflation and a poor employment outlook combined to put considerable pressure on consumer spending.

The Russell 2000 Value Index posted a negative return, underperforming its small-cap growth peer while significantly outpacing its large-cap value counterpart. Energy was by far the leading sector, followed by Materials. Both areas benefited from rising commodity prices, though that trend had begun to reverse itself by the end of the period. Two traditionally non-cyclical sectors, Utilities and Health Care, enjoyed modest positive returns, but the remaining sectors were all negative. Consumer Discretionary and Telecommunications were the areas of greatest weakness.

The portfolio outperformed the Russell 2000 Value Index for the period, delivering a modest positive return while the Index posted a substantial loss. Broadly speaking, both stock selection and sector allocation were positive.

The greatest contribution came from Industrials and Business Services, where we benefited from strong stock choices and our overweight position. We also made very strong relative gains in Energy, Consumer Discretionary, and Health Care, principally due to stock selection in these sectors. Good stock selection in Energy was enhanced by a beneficial overweight position in the sector. Finally, a significant underweight in the Financials sector was helpful as it was battered throughout the period.

The most significant detractor was stock selection in Materials, which was partly offset by an overweight to the robust sector.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Small Company Value Class 1 (began 10/15/05)		1.15	%	—	—	8.41	%		1.15	%	—	—	26.18	%
Small Company Value Class NAV (began 10/15/05)		1.20	%	—	—	8.46	%		1.20	%	—	—	26.36	%
Russell 2000 Value Index3,5,6		–7.52	%	—	—	5.60	%		–7.52	%	—	—	16.99	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Small Company Value expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

6  It is not possible to invest directly in an index.

50

Spectrum Income Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Managers: Edmund M. Notzon III, Daniel O. Shackelford, Mark J. Vaselkiv, Ian Kelson, Brian Rogers and Andrew McCormick

INVESTMENT OBJECTIVE & POLICIES  •  To seek a high level of current income with moderate share price fluctuation by maintaining broad exposure primarily to domestic and international fixed-income markets in an attempt to reduce the impact of markets that are declining and to benefit from good performance in particular market segments over time.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Government		12.14
Financial		11.13
Government National Mortgage Association		10.95
Federal National Mortgage Association		8.80
Communications		7.15
Consumer, Non-cyclical		5.83
Mortgage Securities		5.76
Energy		5.42
Industrial		4.33
Consumer, Cyclical		3.78

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Spectrum Income Class NAV returned +2.06%, underperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  The past 12 months witnessed a significant amount of volatility in both the equity and fixed income markets. The credit crisis that started in the mortgage market continued to threaten corporations and the economy as a whole, leading investors to generally prefer high-quality securities. The environment boosted longer-term Treasuries, while reducing the appeal of high-yield corporate bonds.

The economy weakened measurably over the past 12 months, which helped the Federal Reserve keep the federal funds target rate at a low and relatively beneficial level. At the same time, surging oil and food prices pushed up overall inflation, including energy and food costs, dramatically. Currently, the Fed is choosing to downplay headline inflation figures in favor of core numbers, which exclude food and fuel. The core data appears to be more benign, but the investment community remains concerned over the potential impact of persistently elevated inflation.

In a year when fixed-income securities significantly outpaced stocks, the portfolio’s dividend-paying stock portion proved to be a significant liability from a relative-return standpoint. However, stock selection within that component was favorable and helped mitigate the negative effects.

In addition to the drag on performance from its equity component, the portfolio also suffered because of its allocation to high-yield bonds, which are not represented in the benchmark index. High-yield securities saw their returns decline amid a flight to quality that favored safer, higher-quality bonds.

Overall, the portfolio’s positioning and sector allocations relative to the benchmark detracted from results, while its security selection contributed to relative returns. Sector allocations were mostly neutral or marginally positive, except for an underweight to long-term U.S. Treasury bonds and the allocation to dividend-paying stocks. These negative allocations were offset by our strong security selection within the high-yield and long-term U.S. Treasury portions of the portfolio.

PERFORMANCE TABLE 1,4	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Spectrum Income Class NAV (began 10/29/05)		2.06	%	—	—	5.08	%		2.06	%	—	—	15.18	%
Lehman Brothers Aggregate Bond Index3,5,6		5.86	%	—	—	4.97	%		5.86	%	—	—	14.83	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Since inception, a portion of the Spectrum Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

5  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

6  It is not possible to invest directly in an index.

51

Strategic Bond Fund
Subadviser: Western Asset Management Company
Portfolio Managers: S. Kenneth Leech, Steven A. Walsh, Keith J. Gardner, Mark Lindbloom and Mike Buchanan

INVESTMENT OBJECTIVE & POLICIES  •  To seek a high level of total return consistent with preservation of capital by investing at least 80% of the Fund’s net assets in fixed-income securities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Federal National Mortgage Association		17.82
Financial		12.49
Mortgage Securities		12.33
Energy		5.50
Consumer, Cyclical		4.65
Asset Backed Securities		4.57
Industrial		3.94
Consumer, Non-cyclical		3.89
Communications		3.67
Utilities		3.49

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Strategic Bond Class NAV returned –3.70%, underperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  During the period, the Federal Reserve shifted from a predominant concern with inflationary pressures to a concerted effort to stimulate the economy and salvage financial markets. In addition to cutting the federal funds rate from 5.25% to 2% from last fall through early spring, the Fed announced new lending facilities targeted at strained credit conditions, with a specific focus on the mortgage market. The yield on the two-year Treasury note declined 1.77 percentage points, driving a powerful rally in the Treasury market. All other asset classes suffered as a severe flight-to-safety forced yield spreads sharply higher. Home prices declined and the drag from the homebuilding sector alone detracted more than 1% from economic growth. Still, the economy continued to expand modestly thanks to a robust trade sector, a stubborn consumer, and well-timed tax rebates.

Every asset class within the fixed income arena underperformed U.S. Treasuries. Consequently, overweights to spread product, including investment grade credit, high yield credit and emerging markets bonds, resulted in significant underperformance. The high yield allocation was the largest detractor from performance. An allocation to non-agency mortgage-backed securities also led to underperformance. These securities declined by about 25% as delinquencies and defaults on residential mortgages rose sharply. Issue selection was the third negative factor. Duration and curve strategies had marginally positive impact on performance as the long duration position benefited from lower interest rates and the curve steepener position profited from short rates declining more than longer rates.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Strategic Bond Class 1 (began 10/15/05)		–3.74	%	—	—	1.25	%		–3.74	%	—	—	3.65	%
Strategic Bond Class NAV (began 10/15/05)		–3.70	%	—	—	1.31	%		–3.70	%	—	—	3.82	%
Lehman Brothers Aggregate Bond Index3,4,5		5.86	%	—	—	5.03	%		5.86	%	—	—	15.18	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5  It is not possible to invest directly in an index.

52

Strategic Income Fund
Subadviser: MFC Global Investment Management (U.S.), LLC
Portfolio Managers: Daniel S. Janis III, John F. Iles and Barry H. Evans

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks a high level of current income by investing at least 80% of its assets in foreign government and corporate debt securities from developed and emerging markets, U.S. government and agency securities, and domestic high yield bonds.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Government		23.58
Mortgage Securities		14.26
Consumer, Cyclical		11.21
Federal National Mortgage Association		10.11
Financial		7.56
Communications		7.32
Industrial		3.92
Consumer, Non-cyclical		3.18
U.S. Treasury Notes		2.14
Basic Materials		1.86

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Strategic Income Class NAV returned +3.67%, underperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  For the period, fixed income markets faced extreme turbulence and numerous challenges, including a nationwide home price decline, spiking energy prices, a slowing economy, a significant credit crunch, and weak capital markets. Global efforts by investors and financial institutions to lower their leverage added to market headwinds. The Federal Reserve attempted to provide liquidity not only by lowering the federal funds rate from 4.75% to 2.0% during the period, but also by establishing new liquidity facilities aimed at directly assisting the broader financial sector. Away from the Treasury market, there were few options available to avoid the market downdraft. Poor liquidity and low investor appetite for risk pushed credit spreads wider. Lower U.S. interest rates and the apparent decoupling of the global economy from the U.S. resulted in U.S. dollar weakness for most of the year. This trend reversed sharply over the last two months, as global economic growth slowed and commodity prices sold off.

Though the Fund maintained an average quality rating of A2, its out-of-benchmark exposure to high yield bonds detracted from its relative performance. The effects of the credit crunch and resultant risk-averse investor behavior pushed high yield credit spreads from 440 basis points (4.4 percentage points) over U.S. Treasuries last August, to 790 basis points at period end. The Fund was also held back by its underweighting of U.S. Treasuries. The Fed’s interest rate cuts and a general flight to quality resulted in robust Treasury performance. Also positive were the Fund’s holdings in Canadian government bonds. Early on, the bonds gained from the Canadian dollar’s appreciation. The bonds were then hedged back to the U.S. dollar and delivered strong local performance.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Strategic Income Class NAV (began 4/28/06)		3.67	%	—	—	3.87	%		3.67	%	—	—	9.30	%
Lehman Brothers Aggregate Bond Index3,4,5		5.86	%	—	—	6.06	%		5.86	%	—	—	14.79	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since April 28, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5  It is not possible to invest directly in an index.

53

Total Bond Market Fund
Subadviser: Declaration Management and Research, LLC
Portfolio Managers: Peter Farley and James E. Shallcross

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks to track the performance of the Lehman Brothers Aggregate Bond Index by investing at least 80% of its net assets listed in this Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Federal National Mortgage Association		40.19
U.S. Treasury Notes		18.01
Financial		8.88
U.S. Treasury Bonds		6.06
Communications		3.76
Industrial		2.82
Mortgage Securities		2.62
Utilities		2.43
Federal Home Loan Mortgage Corp.		2.38
Consumer, Non-cyclical		2.27

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Total Bond Market Class NAV returned +5.54%, underperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  Interest rates fell sharply over the period as the Federal Reserve and market participants remained concerned over slowing economic growth and the fragile condition of the financial system. Over the course of one year, the market and the economy have responded to many historic events. The worst housing market since the Great Depression, the bailout of Bear Stearns, the price of oil and other commodities hitting record highs, the U.S. dollar’s swift decline, the collapse of whole industries, such as mortgage insurance, monoline insurance, automobile, homebuilding, and banking/brokerage, and lastly, the takeover of Fannie Mae and Freddie Mac. It’s been a challenging year with the credit crisis continuing to unfold and the economy (while resilient) beginning to show cracks with plunging consumer confidence, rising unemployment, and uneven growth.

The portfolio outperformed the benchmark due to an underweight to some of the fixed income credit sectors that massively deteriorated over the period, specifically commercial mortgage-backed securities, residential mortgages and asset-backed securities. These sectors performed terribly as the deterioration in the housing market intensified and tight credit conditions began to hamper commercial real estate. Security selection also added to performance, as the portfolio avoided many of the names which suffered significantly during the economic downturn.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Total Bond Market Class NAV (began 10/27/06)		5.54	%	—	—	4.92	%		5.54	%	—	—	9.28	%
Lehman Brothers Aggregate Bond Index3,4,5		5.86	%	—	—	5.49	%		5.86	%	—	—	10.37	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 27, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and non-convertible investment-grade debt issues.

5  It is not possible to invest directly in an index.

54

Total Return Fund
Subadviser: Pacific Investment Management Company, LLC
Portfolio Manager: William H. Gross

INVESTMENT OBJECTIVE & POLICIES  •  To seek maximum total return, consistent with preservation of capital and prudent investment management, by investing at least 65% of its total assets in a diversified portfolio of fixed-income instruments of varying maturities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Federal National Mortgage Association		27.46
Mortgage Securities		27.17
Financial		23.63
Federal Home Loan Mortgage Corp.		9.23
Asset Backed Securities		5.09
Government		1.67
Consumer, Non-cyclical		0.96
Consumer, Cyclical		0.93
Communications		0.69
Energy		0.46

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the Total Return Class NAV returned +7.93%, outperforming the +5.86% return of the Lehman Brothers Aggregate Bond Index.

Market Environment  •  The credit crisis that began in the summer of 2007 continued to weigh on the financial markets throughout the year. Government bond yields fell worldwide amid a flight to the highest quality assets. To forestall a U.S. recession and unfreeze credit markets, the Federal Reserve lowered the federal funds rate from 5.25% to 2.00% before pausing in April due to concerns about inflation. The Fed also took several unconventional steps. It made several hundred billion dollars of liquidity facilities available against an expanded range of collateral, opened its discount window to investment banks, and arranged the rescue of Bear Stearns, a brokerage firm weighed down by subprime-related exposure. The U.S. yield curve remained steep. Agency mortgage-backed securities (MBS) continued to underperform Treasuries, driven by the liquidity crisis. Dealers struggled with regulatory capital constraints and the looming threat of further downgrades to positions; they may soon be forced to unwind more risk. Price volatility remains high and liquidity extremely poor across the capital structure.

Emphasis on shorter maturities in the U.S., U.K., and the European Union Countries helped returns over the past year as the yield curves steepened. An average underweight in U.S. duration detracted from performance as the U.S. yields fell in the first half. An overweight to mortgages hurt returns as they lagged like-duration Treasuries amid rising volatility. An underweight in corporates helped returns as that sector underperformed, but was offset by an overweight in high yield as high yields underperformed Treasuries. Allocation to emerging markets also detracted from performance as they underperformed like-duration Treasuries. The emerging markets sector faced a continued deterioration in global credit markets and growing worries about an imminent slowdown in world economic activity.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Total Return Class 1 (began 10/15/05)		7.78	%	—	—	5.26	%		7.78	%	—	—	15.89	%
Total Return Class NAV (began 10/15/05)		7.93	%	—	—	5.32	%		7.93	%	—	—	16.10	%
Lehman Brothers Aggregate Bond Index3,4,5		5.86	%	—	—	5.03	%		5.86	%	—	—	15.18	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Lehman Brothers Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

5  It is not possible to invest directly in an index.

55

U.S. Government Securities Fund
Subadviser: Western Asset Management Company
Portfolio Managers: S. Kenneth Leech, Steven A. Walsh, Mark S. Lindbloom, Ronald D. Mass and Frederick R. Marki

INVESTMENT OBJECTIVE & POLICIES  •  To obtain a high level of current income consistent with preservation of capital and maintenance of liquidity. The Fund invests at least 80% of its net assets in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, and derivative securities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Federal National Mortgage Association		35.99
Mortgage Securities		32.14
Asset Backed Securities		5.71
Federal Home Loan Mortgage Corp.		1.81
U.S. Treasury Notes		1.16
Treasury Inflation-Protected Securities		0.84
Government National Mortgage Association		0.22
Financial		0.20
U.S. Treasury Bonds		0.18

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the U.S. Government Securities Class NAV returned –1.62%, underperforming the +8.24% return of the Citigroup 1–10 Year Treasury Index.

Market Environment  •  During the period, the Federal Reserve shifted from a predominant concern with inflationary pressures to a concerted effort to stimulate the economy and salvage financial markets. In addition to cutting the federal funds rate from 5.25% to 2% from last fall through early spring, the Fed announced new lending facilities targeted at strained credit conditions, with a specific focus on the mortgage market. The yield on the two-year Treasury note declined 1.77 percentage points, driving a powerful rally in the Treasury market. All other asset classes suffered as a severe flight-to-safety forced yield spreads sharply higher. Home prices declined and the drag from the homebuilding sector alone detracted more than 1% from economic growth. Still, the economy continued to expand modestly thanks to a robust trade sector, a stubborn consumer, and well-timed tax rebates.

Relative to the benchmark, the portfolio’s overweight exposure to the agency mortgage-backed sector detracted from returns as spreads widened and volatility surged. However, the agency MBS sector in recent months and weeks has performed much better as it has become clear the U.S. government will support the debt and mortgage backed securities of both Fannie Mae and Freddie Mac, the two government-sponsored housing agencies. Non-agency mortgage-backed securities continued to trade poorly because of continued forced selling and deleveraging in global financial markets. Most of the Fund’s underperformance over the last year is attributed to this sector.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
U.S. Government Securities Class 1 (began 10/15/05)		–1.67	%	—	—	1.64	%		–1.67	%	—	—	4.81	%
U.S. Government Securities Class NAV (began 10/15/05)		–1.62	%	—	—	1.70	%		–1.62	%	—	—	4.98	%
Citigroup 1-10 Year Treasury Index3,4,5		8.24	%	—	—	5.77	%		8.24	%	—	—	17.79	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Citigroup 1-10 Year Treasury Index is a broad measure of the performance of the short-term and medium-term U.S. Treasury securities.

5  It is not possible to invest directly in an index.

56

U.S. High Yield Bond Fund
Subadviser: Wells Capital Management, Incorporated
Portfolio Managers: Phil Susser and Niklas Nordenfelt

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks total return with a high level of current income by primarily investing in corporate debt securities that are below investment grade, including preferred and other convertible securities in below investment grade debt securities. The Fund also invests in corporate debt securities and may buy preferred and other convertible securities and bank loans.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications		22.74
Consumer, Non-cyclical		17.37
Consumer, Cyclical		11.86
Financial		11.69
Energy		11.63
Industrial		7.40
Technology		5.68
Basic Materials		4.85
Utilities		3.02
Diversified		0.30

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the U.S. High Yield Bond Class NAV returned +1.31%, outperforming the –1.02% return of the Merrill Lynch U.S. High Yield Master II Constrained Index.

Market Environment  •  We witnessed a significant re-pricing of risk across all markets as subprime mortgage problems spread to all market sectors. The fixed income market witnessed the near extinction of many recently developed investments such as collateralized debt obligations (CDOs), structured investment vehicles (SIVs), and auction rate securities. The Federal Reserve and U.S. Treasury took a series of actions to move aggressively and creatively to help stabilize the markets. This includes implementing significant federal funds rate cuts, facilitating the JP Morgan/Bear Stearns bailout, making a new lending facility available to investment banks and most recently, the takeover of Fannie Mae and Freddie Mac.

As investor fear and lack of confidence overwhelmed the markets and affected the economy, Treasury yields declined significantly in response to Fed easing and a flight-to-quality among investments. Over the past year, the yield curve steepened significantly, with two-year Treasury yields declining 1.88 percentage points while yields on 10-year Treasuries declined 0.80 percentage points. The underperformance of all spread sectors has produced current yield premiums to Treasuries at or near their all-time widest levels. A sharply slowing global economy and rising unemployment have set the stage for a prolonged economic slowdown.

Security selection was the largest contributor to performance during the year. As evidence of the de-levering of the financial system came forth, we focused on investing in positions in secured non-cyclical issuers. The most important contributor to performance was bonds the Fund did not hold as we avoided issuers exposed to the Financial, Housing and Consumer Discretionary sectors. The Fund’s exposure to bank loans had a neutral impact on performance. Overall, the Fund’s higher credit quality allocation also added to performance. Poor absolute returns during the period were primarily driven by the significant increase in high yield credit spreads that increased borrowing costs to high yield issuers despite the decline in Treasury yields during the period.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
U.S. High Yield Bond Class 1 (began 10/15/05)		1.25	%	—	—	4.75	%		1.25	%	—	—	14.30	%
U.S. High Yield Bond Class NAV (began 10/15/05)		1.31	%	—	—	4.81	%		1.31	%	—	—	14.47	%
Merrill Lynch U.S. High Yield Master II Constrained Index3,4,5		–1.02	%	—	—	3.89	%		–1.02	%	—	—	11.78	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 15, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index composed of U.S. currency high-yield bonds issued by U.S. and non-U.S. issuers.

5  It is not possible to invest directly in an index.

57

U.S. Multi Sector Fund
Subadviser: Grantham, Mayo, Van Otterloo & Co. LLC
Portfolio Manager: Sam Wilderman

INVESTMENT OBJECTIVE & POLICIES  •  The Fund seeks total return greater than its benchmark, the Russell 3000 Index, and invests at least 80% of its net assets in investments tied economically to the U.S.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical		40.02
Energy		14.97
Consumer, Cyclical		11.24
Technology		10.66
Communications		8.31
Industrial		5.22
Financial		3.73
Basic Materials		2.42
Utilities		0.06
Diversified		0.04

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGER’S COMMENTARY

Performance  •  For the year ended August 31, 2008, the U.S. Multi Sector Class NAV returned –10.64%, underperforming the –10.22% return of the Russell 3000 Index.

Market Environment  •  The U.S. market took a wild ride during the period, with bouts of extreme optimism and pessimism. Percolating recession fears and losses from financial companies drove the broad market indexes down sharply until a series of interest rate cuts stemmed the tide. In March, the Federal Reserve stepped in to save faltering Bear Stearns by facilitating a merger with JP Morgan Chase. A two-month rally followed, where risky assets thrived and the market advanced. But then, a continued rise in commodity prices and renewed financial sector worries led to a steady market decline, highlighted by several bank failures and doubts about the solvency of Fannie Mae and Freddie Mac. The Russell 3000 Index rode massive up and down swings to finish the year at a 10.22% decline.

Amid this volatility, our primary stock selection tools — valuation and momentum — performed differently. Valuation detracted modestly from returns as strong performance by high quality holdings wasn’t enough to offset weakness in some lower quality selections. Our momentum discipline is designed to identify stocks that are performing well and appear poised to continue outperforming. Positions in the Energy and Information Technology sectors and an avoidance of the troubled Financials sector helped momentum produce strong relative returns. Rising energy prices and positive performance by technology firms helped our overweight positions. The primary sector detracting from performance was Health Care, where the benefit of being overweight the sector was overcome by poor stock selection.

Consumer Discretionary stocks also detracted from returns, as a number of our overweight positions struggled in a poor economic environment. Finally, although our overweight position in Energy stocks benefited the Fund as oil prices soared, poor stock selection negated this. Consumer Staples contributed, as investors sought safer stocks in a volatile market. Our overweight position and positive stock selection drove relative returns as the sector outperformed the market.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
U.S. Multi Sector Class NAV (began 10/24/05)		–10.64	%	—	—	0.84	%		–10.64	%	—	—	2.40	%
Russell 3000 Index3,4,5		–10.22	%	—	—	4.71	%		–10.22	%	—	—	14.02	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 24, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell 3000 Index is an unmanaged index of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

5  It is not possible to invest directly in an index.

58

Value Fund
Subadviser: Morgan Stanley Investment Management, Inc.
Portfolio Managers: James Gilligan, Tom Copper, John Mazanec, Thomas Bastian, Mark Laskin, James Roeder and Sergio Marcheli

INVESTMENT OBJECTIVE & POLICIES  •  To realize an above-average total return over a market cycle of three to five years by investing in equity securities of companies with capitalizations similar to the market capitalization of companies in the Russell Midcap Value Index

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial		21.63
Consumer, Non-cyclical		19.22
Industrial		11.79
Consumer, Cyclical		10.67
Technology		10.26
Basic Materials		9.48
Utilities		8.91
Energy		4.17

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Value Class NAV returned –10.48%, underperforming the –10.44% return of the Russell Midcap Value Index.

Market Environment  •  All capitalization segments of the U.S. stock market finished the 12-month period lower, with mid- and large-cap stocks trailing small-cap stocks. Value stocks, in which the Fund primarily invests, underperformed growth stocks by a significant margin. The underperformance of value relative to growth was due in large part to value stock indexes’ higher exposure to financials, a group which was among the worst performing areas of the market during the period.

The unfolding credit crisis, rising inflation and depressed consumer spending weighed heavily on investor sentiment over the period. Despite the Federal Reserve’s (the “Fed”) interventions to help stabilize the financial markets and inject liquidity, investor confidence continued to be undermined by uncertainties about the housing market’s slide and recession worries. Investors also feared that inflation pressures, brought on by high oil prices and high food prices, would limit the Fed’s ability to fight recession. Although oil prices eased in July and August, concerns about the solvency of mortgage giants Fannie Mae and Freddie Mac contributed to sustained volatility going into the final weeks of the Fund’s fiscal year.

The main positive contributors to the Fund’s relative performance were the financials, technology and telecommunication services sectors. Within the financials sector, the Fund benefited from stock selection within regional banks, where one holding performed particularly well due to its lack of subprime mortgage exposure, and insurance stocks, a group which benefited from their relative lack of exposure to the problems in the mortgage market. In the technology sector, the Fund held a hardware and equipment stock that rallied following an acquisition bid announcement, and made further gains from strong stock selection in the software and services segment. Finally, a significant underweight in telecommunication services kept the Fund from suffering the bulk of that sector’s losses during the period.

On the other hand, the Fund’s relative performance was hurt by the consumer discretionary sector, in which stock selection in retailing and media were the primary detractors from performance. In the health care sector, weak stock selection in the pharmaceuticals group was especially detrimental. Consumer staples was another area of weakness, in particular the Fund’s holding in a pharmacy retailer whose stock price slid as the company’s access to capital became uncertain in the tighter credit conditions.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Value Class NAV (began 10/27/06)		–10.48	%	—	—	1.32	%		–10.48	%	—	—	2.45	%
Russell Midcap Value Index3,4,5		–10.44	%	—	—	–2.67	%		–10.44	%	—	—	–4.87	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 27, 2006.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell Midcap Value Index is an unmanaged index that measures the performance of those Russell Midcap Companies with lower price-to-book ratios and lower forecasted growth value.

5  It is not possible to invest directly in an index.

59

Value & Restructuring Fund
Subadviser: Columbia Management Advisors LLC
Portfolio Managers: David J. Williams and Timothy Evnin

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital appreciation by investing at least 65% of the Fund’s assets in common stocks of U.S. and foreign companies whose share price does not reflect the economic value of the company’s assets, but where its restructuring efforts or industry consolidation will serve to highlight the true value of the company.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy		24.88
Industrial		16.41
Financial		14.22
Basic Materials		10.43
Consumer, Non-cyclical		9.95
Communications		9.40
Consumer, Cyclical		4.07
Technology		1.86
Utilities		1.29

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Value & Restructuring Class NAV returned –5.68%, outperforming the –11.14% return of the S&P 500 Index.

Market Environment  •  Performance was volatile throughout the year — decent for the first 10 months and very disappointing during the summer. Both the ups and downs resulted from the portfolio’s overweighted Energy, Commodities and Industrials sectors. Overall, the loss of 5.7% for the 12-month period, while disappointing, was considerably better than the 11.1% decline in the S&P 500 Index and the 14.7% drop in the Russell 1000 Value Index.

Much of the Fund’s outperformance relative to our benchmarks is attributable to the surge in oil, natural gas and coal stocks, which accounted for eight of the top 10 performers in the portfolio. Like many other value funds, we were hurt by the steep decline in the still fragile banking industry. Six of the 10 worst performers were in the Financial sector.

We believe in our low turnover investment style, which concentrates on buying cheap stocks undergoing restructuring and holding them until fundamentals prove us wrong or valuations indicate a better use of proceeds elsewhere. Properly executed, this approach works well because it is tax efficient and avoids the pitfall of excessive trading. But in this volatile market, even this conservative approach provided little refuge. At some point throughout the year, all sectors seemed to be under extreme bearish pressure. With the benefit of hindsight, the main culprit was continuing credit and liquidity issues. Such posturing has led many investors and corporations to expect higher tax rates, more trade restrictions, and closer scrutiny of the markets by regulators and politicians. Stock valuations are about as low now as they have been over the past 16 years.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception2
Value & Restructuring Class NAV (began 10/29/05)		–5.68	%	—	—	7.76	%		–5.68	%	—	—	23.75	%
S&P 500 Index3,4,5		–11.14	%	—	—	4.42	%		–11.14	%	—	—	13.12	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

5  It is not possible to invest directly in an index.

60

Vista Fund
Subadviser: American Century Investment Management, Inc.
Portfolio Managers: Glen A. Fogle and Bradley J. Eixmann

INVESTMENT OBJECTIVE & POLICIES  •  To seek long-term capital growth by investing in common stocks of companies that are medium-sized and smaller at the time of purchase.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICE

 

Sector Weighting*	% of Total
Consumer, Non-cyclical		20.38
Industrial		20.08
Energy		12.85
Consumer, Cyclical		12.30
Technology		11.67
Basic Materials		9.57
Communications		7.33
Financial		1.45
Funds		0.48

 

*  Top Sectors as a percentage of market value.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  •  For the year ended August 31, 2008, the Vista Class NAV returned –6.15%, outperforming the –7.57% return of the Russell Midcap Growth Index.

Market Environment  •  U.S. stocks delivered negative returns during the period, amid a volatile market environment, sluggish economy, and credit crisis triggered by problems in the subprime mortgage market. For the reporting period, mid-cap stocks outperformed large-cap stocks, but underperformed their small-cap counterparts. Among mid-cap stocks, the Russell Midcap Growth Index declined –7.57%, compared with –10.44% for the Russell Midcap Value Index.

The Fund maintained an overweight position in the Industrials sector, which made the largest sector contribution to portfolio returns. Within the sector, the portfolio focused on the machinery industry, specifically those companies benefiting from rising agriculture demand, leading to increased demand for farming equipment. Also within the Industrials group, the portfolio held an overweight position in the electrical equipment industry, where we focused on companies involved with alternative energy. In this emerging industry group, we selected companies that have been some of the largest beneficiaries of increasing demand. In the Materials sector, the portfolio benefited from overweight stakes in select chemicals companies that are producers of fertilizer and seeds. As with our holdings in the machinery industry, these companies continued to benefit from secularly higher agriculture demand, driven by a higher standard of living in emerging markets, a lower availability of farmland and a greater global focus on biofuels.

The portfolio held an underweight in the Energy sector during the reporting period. This weighed on relative performance, as the sector continued to benefit from rising prices. Within the group, an underweight stake in the energy equipment and services industry shaved relative gains, as these companies generally benefited from increased prices for oil and natural gas.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Periods Ended August 31, 2008		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception 2
Vista Class NAV (began 10/29/05)		–6.15	%	—	—	11.05	%		–6.15	%	—	—	34.86	%
Russell Midcap Growth Index3,4,5		–7.57	%	—	—	6.32	%		–7.57	%	—	—	19.10	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Current subadviser has managed the fund since October 29, 2005.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  Russell Midcap Growth Index is an unmanaged index that contains those stocks from the Russell Mid Cap Index with a greater than average growth orientation.

5  It is not possible to invest directly in an index.

61

John Hancock Funds II
Shareholder Expense Example

As a shareholder of John Hancock Funds II, you incur ongoing costs, such as management fees, distribution (12b-1) fees and other expenses. In the case of Absolute Return, American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification, in addition to the operating expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the operating expenses of the underlying funds in which the Fund invests. Because the underlying funds have varied operating expenses and transaction costs and the Fund may own different proportions of the underlying funds at different times, the amount of expenses incurred indirectly by the Fund will vary. If these indirect expenses were included, your expenses paid during the period would have been higher.

This example is intended to help you understand your ongoing costs (in dollars) of investing in the funds 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 invested at the beginning of the period and held for the entire period (March 1, 2008 through August 31, 2008).

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 below and 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 portfolios. 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.

	Beginning Account Value 3/1/2008		Ending Account Value 8/31/2008		Expenses Paid During Period1 3/1/2008– 8/31/2008		Annualized Expense Ratio2
Absolute Return3
Class A — Actual	$	1,000.00	$	966.80	$	2.42		0.49	%
Class A — Hypothetical (5% of annualized return before expenses)		1,000.00		1,022.70		2.49		0.49	%
Class B — Actual		1,000.00		962.80		5.87		1.19	%
Class B — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.20		6.04		1.19	%
Class C — Actual		1,000.00		962.80		5.87		1.19	%
Class C — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.20		6.04		1.19	%
Class 1 — Actual		1,000.00		966.90		1.19		0.24	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,023.90		1.22		0.24	%
Active Bond
Class 1 — Actual	$	1,000.00	$	979.40	$	3.58		0.72	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.50		3.66		0.72	%
Class NAV — Actual		1,000.00		980.70		3.34		0.67	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.80		3.41		0.67	%
All Cap Core
Class NAV — Actual	$	1,000.00	$	975.70	$	3.97		0.80	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.06		0.80	%

62

John Hancock Funds II
Shareholder Expense Example

	Beginning Account Value 3/1/2008		Ending Account Value 8/31/2008		Expenses Paid During Period1 3/1/2008– 8/31/2008		Annualized Expense Ratio2
All Cap Growth
Class 1 — Actual	$	1,000.00	$	963.40	$	4.89		0.99	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.20		5.03		0.99	%
Class NAV — Actual		1,000.00		964.10		4.64		0.94	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.40		4.77		0.94	%
All Cap Value
Class 1 — Actual	$	1,000.00	$	1,004.50	$	4.84		0.96	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.30		4.88		0.96	%
Class NAV — Actual		1,000.00		1,004.50		4.59		0.91	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.60		4.62		0.91	%
American Diversified Growth & Income3,4
Class 1 — Actual	$	1,000.00	$	975.00	$	0.13		0.08	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,024.70		0.41		0.08	%
American Fundamental Holdings3,4
Class 1 — Actual	$	1,000.00	$	978.00	$	0.13		0.08	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,024.70		0.41		0.08	%
American Global Diversification3,4
Class 1 — Actual	$	1,000.00	$	951.00	$	0.13		0.08	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,024.70		0.41		0.08	%
Blue Chip Growth
Class 1 — Actual	$	1,000.00	$	1,004.70	$	4.33		0.86	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.80		4.37		0.86	%
Class NAV — Actual		1,000.00		1,005.30		4.08		0.81	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.12		0.81	%
Capital Appreciation
Class 1 — Actual	$	1,000.00	$	992.20	$	4.01		0.80	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.06		0.80	%
Class NAV — Actual		1,000.00		993.20		3.76		0.75	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.40		3.81		0.75	%
Core Bond
Class 1 — Actual	$	1,000.00	$	1,002.20	$	4.08		0.81	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.12		0.81	%
Class NAV — Actual		1,000.00		1,002.50		3.83		0.76	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.86		0.76	%
Core Equity
Class 1 — Actual	$	1,000.00	$	849.30	$	4.04		0.87	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.80		4.42		0.87	%
Class NAV — Actual		1,000.00		849.60		3.81		0.82	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.00		4.17		0.82	%
Emerging Growth
Class 1 — Actual	$	1,000.00	$	1,032.10	$	4.65		0.91	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.60		4.62		0.91	%
Class NAV — Actual		1,000.00		1,032.10		4.39		0.86	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.80		4.37		0.86	%
Emerging Markets Value
Class NAV — Actual	$	1,000.00	$	850.90	$	5.07		1.09	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.70		5.53		1.09	%
Emerging Small Company
Class 1 — Actual	$	1,000.00	$	1,008.80	$	5.81		1.15	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.40		5.84		1.15	%
Class NAV — Actual		1,000.00		1,009.20		5.56		1.10	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.60		5.58		1.10	%

63

John Hancock Funds II
Shareholder Expense Example

	Beginning Account Value 3/1/2008		Ending Account Value 8/31/2008		Expenses Paid During Period1 3/1/2008– 8/31/2008		Annualized Expense Ratio2
Equity-Income
Class 1 — Actual	$	1,000.00	$	960.60	$	4.24		0.86	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.80		4.37		0.86	%
Class NAV — Actual		1,000.00		961.20		3.99		0.81	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.12		0.81	%
Fundamental Value
Class 1 — Actual	$	1,000.00	$	949.40	$	4.17		0.85	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.90		4.32		0.85	%
Class NAV — Actual		1,000.00		949.90		3.92		0.80	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.06		0.80	%
Global Bond
Class 1 — Actual	$	1,000.00	$	938.70	$	4.39		0.90	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.60		4.57		0.90	%
Class NAV — Actual		1,000.00		938.70		4.09		0.84	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.90		4.27		0.84	%
Global Real Estate
Class NAV — Actual	$	1,000.00	$	918.80	$	5.11		1.06	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.80		5.38		1.06	%
High Income
Class NAV — Actual	$	1,000.00	$	952.20	$	3.53		0.72	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.50		3.66		0.72	%
High Yield
Class 1 — Actual	$	1,000.00	$	998.70	$	3.82		0.76	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.86		0.76	%
Class NAV — Actual		1,000.00		1,000.10		3.57		0.71	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.60		3.61		0.71	%
Index 500
Class NAV — Actual	$	1,000.00	$	972.30	$	2.48		0.50	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,022.60		2.54		0.50	%
International Equity Index
Class NAV — Actual	$	1,000.00	$	893.00	$	2.71		0.57	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,022.30		2.90		0.57	%
International Opportunities
Class 1 — Actual	$	1,000.00	$	881.90	$	4.87		1.03	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.00		5.23		1.03	%
Class NAV — Actual		1,000.00		881.60		4.64		0.98	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.20		4.98		0.98	%
International Small Cap
Class 1 — Actual	$	1,000.00	$	899.30	$	5.59		1.17	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.30		5.94		1.17	%
Class NAV — Actual		1,000.00		899.80		5.35		1.12	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.50		5.69		1.12	%
International Small Company
Class NAV — Actual	$	1,000.00	$	883.50	$	5.21		1.10	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.60		5.58		1.10	%
International Value
Class 1 — Actual	$	1,000.00	$	917.00	$	4.72		0.98	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.20		4.98		0.98	%
Class NAV — Actual		1,000.00		916.80		4.48		0.93	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.50		4.72		0.93	%
Investment Quality Bond
Class 1 — Actual	$	1,000.00	$	991.50	$	3.75		0.75	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.40		3.81		0.75	%
Class NAV — Actual		1,000.00		992.60		3.51		0.70	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.60		3.56		0.70	%

64

John Hancock Funds II
Shareholder Expense Example

	Beginning Account Value 3/1/2008		Ending Account Value 8/31/2008		Expenses Paid During Period1 3/1/2008– 8/31/2008		Annualized Expense Ratio2
Large Cap
Class 1 — Actual	$	1,000.00	$	994.20	$	4.01		0.80	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.06		0.80	%
Class NAV — Actual		1,000.00		994.90		3.76		0.75	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.40		3.81		0.75	%
Large Cap Value
Class 1 — Actual	$	1,000.00	$	952.80	$	4.32		0.88	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.70		4.47		0.88	%
Class NAV — Actual		1,000.00		952.90		4.07		0.83	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.00		4.22		0.83	%
Mid Cap Index
Class NAV — Actual	$	1,000.00	$	1,040.20	$	2.51		0.49	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,022.70		2.49		0.49	%
Mid Cap Intersection
Class NAV — Actual	$	1,000.00	$	1,008.20	$	4.69		0.93	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.50		4.72		0.93	%
Mid Cap Stock
Class 1 — Actual	$	1,000.00	$	988.30	$	4.70		0.94	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.40		4.77		0.94	%
Class NAV — Actual		1,000.00		988.30		4.45		0.89	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.70		4.52		0.89	%
Mid Cap Value
Class 1 — Actual	$	1,000.00	$	970.60	$	4.71		0.95	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.40		4.82		0.95	%
Class NAV — Actual		1,000.00		970.60		4.46		0.90	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.60		4.57		0.90	%
Mid Cap Value Equity
Class NAV — Actual	$	1,000.00	$	961.00	$	5.03		1.02	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.00		5.18		1.02	%
Natural Resources
Class 1 — Actual	$	1,000.00	$	906.20	$	5.27		1.10	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.60		5.58		1.10	%
Class NAV — Actual		1,000.00		906.30		5.03		1.05	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.90		5.33		1.05	%
Optimized All Cap
Class A — Actual	$	1,000.00	$	946.20	$	5.38		1.10	%
Class A — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.60		5.58		1.10	%
Class B — Actual		1,000.00		942.90		8.79		1.80	%
Class B — Hypothetical (5% of annualized return before expenses)		1,000.00		1,016.10		9.12		1.80	%
Class C — Actual		1,000.00		942.90		8.79		1.80	%
Class C — Hypothetical (5% of annualized return before expenses)		1,000.00		1,016.10		9.12		1.80	%
Class 1 — Actual		1,000.00		947.40		3.92		0.80	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.06		0.80	%
Class NAV — Actual		1,000.00		961.50		1.76		0.81	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,009.30		1.80		0.81	%
Real Estate Equity
Class NAV — Actual	$	1,000.00	$	1,053.20	$	4.54		0.88	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.70		4.47		0.88	%
Real Estate Securities
Class 1 — Actual	$	1,000.00	$	1,060.00	$	4.30		0.83	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.00		4.22		0.83	%
Real Return Bond
Class 1 — Actual	$	1,000.00	$	987.70	$	4.10		0.82	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.00		4.17		0.82	%
Class NAV — Actual		1,000.00		987.20		3.80		0.76	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.86		0.76	%

65

John Hancock Funds II
Shareholder Expense Example

	Beginning Account Value 3/1/2008		Ending Account Value 8/31/2008		Expenses Paid During Period1 3/1/2008– 8/31/2008		Annualized Expense Ratio2
Small Cap
Class 1 — Actual	$	1,000.00	$	1,051.20	$	5.16		1.00	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.10		5.08		1.00	%
Class NAV — Actual		1,000.00		1,052.00		4.85		0.94	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.40		4.77		0.94	%
Small Cap Index
Class NAV — Actual	$	1,000.00	$	1,084.50	$	2.93		0.56	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,022.30		2.85	��	0.56	%
Small Cap Opportunities
Class 1 — Actual	$	1,000.00	$	947.80	$	5.53		1.13	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.50		5.74		1.13	%
Class NAV — Actual		1,000.00		948.00		5.29		1.08	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.70		5.48		1.08	%
Small Company
Class 1 — Actual	$	1,000.00	$	1,028.20	$	6.58		1.29	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,018.70		6.55		1.29	%
Class NAV — Actual		1,000.00		1,028.10		6.32		1.24	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,018.90		6.29		1.24	%
Small Company Growth
Class NAV — Actual	$	1,000.00	$	1,046.40	$	5.76		1.12	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.50		5.69		1.12	%
Small Company Value
Class 1 — Actual	$	1,000.00	$	1,100.80	$	5.65		1.07	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,019.80		5.43		1.07	%
Class NAV — Actual		1,000.00		1,101.30		5.39		1.02	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.00		5.18		1.02	%
Spectrum Income
Class NAV — Actual	$	1,000.00	$	992.30	$	4.11		0.82	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.00		4.17		0.82	%
Strategic Bond
Class 1 — Actual	$	1,000.00	$	961.90	$	3.99		0.81	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.12		0.81	%
Class NAV — Actual		1,000.00		963.00		3.75		0.76	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.86		0.76	%
Strategic Income
Class NAV — Actual	$	1,000.00	$	998.30	$	3.82		0.76	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.86		0.76	%
Total Bond Market
Class NAV — Actual	$	1,000.00	$	999.40	$	2.86		0.57	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,022.30		2.90		0.57	%
Total Return
Class 1 — Actual	$	1,000.00	$	988.50	$	3.95		0.79	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.20		4.01		0.79	%
Class NAV — Actual		1,000.00		988.70		3.70		0.74	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.40		3.76		0.74	%
U.S. Government Securities
Class 1 — Actual	$	1,000.00	$	948.50	$	3.77		0.77	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.91		0.77	%
Class NAV — Actual		1,000.00		948.60		3.53		0.72	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.50		3.66		0.72	%
U.S. High Yield Bond
Class 1 — Actual	$	1,000.00	$	1,023.50	$	4.17		0.82	%
Class 1 — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.00		4.17		0.82	%
Class NAV — Actual		1,000.00		1,023.80		3.92		0.77	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.30		3.91		0.77	%

66

John Hancock Funds II
Shareholder Expense Example

	Beginning Account Value 3/1/2008		Ending Account Value 8/31/2008		Expenses Paid During Period1 3/1/2008– 8/31/2008		Annualized Expense Ratio2
U.S. Multi Sector
Class NAV — Actual	$	1,000.00	$	991.80	$	4.01		0.80	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,021.10		4.06		0.80	%
Value
Class NAV — Actual	$	1,000.00	$	979.40	$	4.93		0.99	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.20		5.03		0.99	%
Value & Restructuring
Class NAV — Actual	$	1,000.00	$	967.70	$	4.25		0.86	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.80		4.37		0.86	%
Vista
Class NAV — Actual	$	1,000.00	$	993.70	$	5.01		1.00	%
Class NAV — Hypothetical (5% of annualized return before expenses)		1,000.00		1,020.10		5.08		1.00	%

 

1 Expenses 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 (184), and divided by 366 (to reflect the one-half year period).

2 Ratios 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 Portfolios was as follows:

Fund	Range
Absolute Return		0.70%–1.10	%
American Diversified Growth & Income		0.32%–0.71	%
American Fundamental Holdings		0.32%–0.50	%
American Global Diversification		0.33%–0.71	%

 

3 Expense ratios do not include fees and expenses indirectly incurred by the underlying funds.

4 American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification commenced operations on July 1, 2008. Expenses 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 (62), and divided by 366 (to reflect the one-half year period).

67

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Absolute Return Portfolio
INVESTMENT COMPANIES - 99.44%
Investment Companies - 20.02%
iShares Lehman Aggregate Bond Fund *		3,500	$	352,625
iShares MSCI EAFE Index Fund *		800		50,856
PowerShares DB Commodity Index Tracking Fund		3,545		133,859
SPDR Lehman High Yield Bond ETF *		3,800		162,146
SPDR Trust Series 1		2,300		296,217
Vanguard REIT ETF *		1,800		111,006
				1,106,709
JOHN HANCOCK FUNDS II - 77.86%
Blue Chip Growth (T. Rowe Price) (f)		6,812		129,830
Capital Appreciation (Jennison) (f)		12,717		129,208
Core Bond (Wells Capital) (f)		18,384		231,270
Emerging Markets Value (DFA) (f)		28,425		269,183
Equity-Income (T. Rowe Price) (f)		5,622		90,450
Floating Rate Income (WAMCO) (f)		17,213		168,512
Fundamental Value (Davis) (f)		11,328		173,889
Global Bond (PIMCO) (f)		5,958		89,486
Global Real Estate (Deutsche) (f)		26,964		219,754
High Income (MFC Global U.S.) (f)(g)		16,514		131,617
High Yield (WAMCO) (f)		14,972		131,450
International Opportunities (Marsico) (f)		8,501		129,208
International Small Company (DFA) (f)		10,146		86,139
International Value (Templeton) (f)		8,261		129,208
Investment Quality Bond (Wellington) (f)		15,869		184,236
Large Cap Value (BlackRock) (f)		3,934		86,671
Mid Cap Stock (Wellington) (f)		7,692		130,222
Mid Cap Value Equity (RiverSource) (f)		13,254		130,681
Natural Resources (Wellington) (f)		3,154		110,415
Optimized All Cap (MFC Global U.S.A.) (f)(g)		9,764		87,873
Real Estate Equity (T. Rowe Price) (f)		27,863		237,395
Real Return Bond (PIMCO) (f)		9,929		139,496
Small Company Growth (AIM) (f)		7,568		90,442
Small Company Value (T. Rowe Price) (f)		3,661		91,129
Spectrum Income (T. Rowe Price) (f)		22,562		227,879
Strategic Income (MFC Global U.S.) (f)(g)		22,607		226,524
Total Return (PIMCO) (f)		16,362		230,382
U.S. High Yield Bond (Wells Capital) (f)		11,173		135,082
Value & Restructuring (Columbia) (f)		7,270		87,165
				4,304,796
JOHN HANCOCK FUNDS III - 1.56%
International Core (GMO) (f)		2,378		86,139
TOTAL INVESTMENT COMPANIES (Cost $5,647,492)			$	5,497,644
Total Investments (Absolute Return Portfolio) (Cost $5,647,492) - 99.44%			$	5,497,644
Other Assets in Excess of Liabilities - 0.56%				31,151
TOTAL NET ASSETS - 100.00%			$	5,528,795

 

	Shares or Principal Amount		Value
Active Bond Fund
U.S. TREASURY OBLIGATIONS - 8.33%
Treasury Inflation Protected Securities (d) - 0.33%
2.00% due 07/15/2014	$	1,885,764	$	1,959,869
U.S. Treasury Bonds - 0.84%
4.375% due 02/15/2038		2,085,000		2,070,178
5.00% due 05/15/2037		450,000		491,730
8.75% due 08/15/2020		1,663,000		2,371,983
				4,933,891
U.S. Treasury Notes - 7.16%
2.00% due 02/28/2010		241,000		240,285
3.375% due 07/31/2013		6,210,000		6,294,903
3.875% due 05/15/2018		6,840,000		6,884,353
4.00% due 08/15/2018		8,612,000		8,743,195
4.25% due 11/15/2013		2,210,000		2,331,895
4.75% due 02/15/2010		12,865,000		13,341,404
5.125% due 05/15/2016		3,765,000		4,167,678
				42,003,713
TOTAL U.S. TREASURY OBLIGATIONS (Cost $47,913,061)			$	48,897,473
U.S. GOVERNMENT AGENCY OBLIGATIONS - 32.94%
Federal Home Loan Bank - 0.02%
5.80% due 09/02/2008		135,000		135,039
Federal Home Loan Mortgage Corp. - 1.80%
5.50% due 07/01/2038		1,294,992		1,277,287
5.749% due 04/01/2037		786,753		801,447
5.842% due 03/01/2037 (b)		2,156,846		2,200,856
5.875% due 03/21/2011		81,000		76,723
6.00% due 05/01/2037 to 08/01/2038		6,131,964		6,191,939
				10,548,252
Federal National Mortgage Association - 31.08%
zero coupon due 02/01/2015		390,000		300,127
4.156% due 05/01/2035		2,748,578		2,736,160
4.375% due 03/15/2013		20,000		20,363
4.50% TBA **		6,000,000		5,810,628
5.00% due 05/01/2018 to 03/01/2038		27,937,997		27,160,169
5.00% TBA **		5,000,000		4,953,125
5.07% due 07/01/2033 (b)		2,644		2,655
5.50% due 03/15/2011 to 07/01/2038		88,105,670		87,677,062
5.50% TBA **		5,725,000		5,651,648
5.574% due 01/01/2036 (b)		1,412,455		1,436,379
5.718% due 04/01/2036 (b)		1,025,364		1,045,347
6.00% due 09/01/2022 to 01/01/2038		29,830,581		30,252,073
6.00% TBA **		11,000,000		11,106,563
6.25% due 05/15/2029		157,000		179,778
6.50% due 02/01/2036 to 02/01/2037		3,869,335		3,984,716
7.00% due 09/01/2010 to 10/25/2041		71,438		74,114
7.50% due 09/01/2029 to 08/01/2031		5,161		5,539
				182,396,446
Government National Mortgage
Association - 0.04%
5.00% due 04/15/2035		102,226		100,262
5.50% due 03/15/2035		99,191		99,346
6.00% due 03/15/2033 to 06/15/2033		40,526		41,405
6.50% due 09/15/2028 to 08/15/2031		7,302		7,673
7.00% due 04/15/2029		2,587		2,732

 

The accompanying notes are an integral part of the financial statements.

68

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
Government National Mortgage Association (continued)
8.00% due 10/15/2026	$	2,246	$	2,429
				253,847
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $192,117,793)			$	193,333,584
FOREIGN GOVERNMENT OBLIGATIONS - 0.07%
Argentina - 0.01%
Republic of Argentina
0.63% due 12/31/2038 (b)	ARS	177,218		19,526
1.00% due 12/15/2035 (b)		393,449		11,617
1.00% due 12/31/2033 (b)		72,870		25,698
				56,841
Canada - 0.00%
Government of Canada
5.50% due 06/01/2010	CAD	5,000		4,932
Colombia - 0.01%
Republic of Colombia
10.00% due 01/23/2012	$	20,000		23,200
11.75% due 03/01/2010	COP	8,000,000		4,203
				27,403
Japan - 0.01%
Government of Japan
0.90% due 12/22/2008	JPY	550,000		5,057
1.50% due 09/20/2014		1,350,000		12,756
1.80% due 03/22/2010		2,650,000		24,779
				42,592
Mexico - 0.04%
Government of Mexico
8.00% due 12/07/2023	MXN	238,900		22,258
8.00% due 12/19/2013		167,800		16,003
9.875% due 02/01/2010	$	205,000		221,913
				260,174
Panama - 0.00%
Republic of Panama
8.875% due 09/30/2027		6,000		7,605
9.375% due 04/01/2029		1,000		1,322
				8,927
Peru - 0.00%
Republic of Peru
9.875% due 02/06/2015		2,000		2,470
Philippines - 0.00%
Republic of Philippines
9.125% due 02/22/2010	EUR	2,000		3,002
Sweden - 0.00%
Kingdom of Sweden
5.00% due 01/28/2009	SEK	30,000		4,657
5.25% due 03/15/2011		30,000		4,751
				9,408
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $431,261)			$	415,749

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS - 36.90%
Advertising - 0.05%
R.H. Donnelley Corp.
8.875% due 10/15/2017	$	560,000	$	288,400
Aerospace - 0.05%
BAE Systems 2001 Asset Trust PLC
6.664% due 09/15/2013 (h)		37,301		38,782
BE Aerospace, Inc.
8.50% due 07/01/2018		250,000		260,625
				299,407
Agriculture - 0.24%
Archer-Daniels-Midland Company
6.45% due 01/15/2038		1,000,000		967,970
Mosaic Company
7.625% due 12/01/2016 (h)		390,000		410,136
				1,378,106
Air Travel - 0.24%
Continental Airlines, Inc., Series 00-2
8.307% due 10/02/2019		169,340		140,553
Continental Airlines, Inc., Series 991A
6.545% due 08/02/2020		100,570		90,513
Delta Air Lines, Inc.
6.821% due 08/10/2022		523,564		431,940
Delta Air Lines, Inc., Series 02-1
6.417% due 07/02/2012		515,000		448,050
Northwest Airlines, Inc., Series 07-1
7.027% due 11/01/2019		310,000		274,350
				1,385,406
Aluminum - 0.02%
Alcoa, Inc.
5.72% due 02/23/2019		150,000		136,640
Amusement & Theme Parks - 0.02%
HRP Myrtle Beach Operations LLC
7.3825% due 04/01/2012 (b)(h)		140,000		109,200
Auto Parts - 0.13%
Allison Transmission, Inc.
11.00% due 11/01/2015 (h)		395,000		363,400
Delphi Corp.
6.197% due 11/15/2033^		2,000		10
Tenneco Automotive, Inc.
8.625% due 11/15/2014		445,000		378,250
				741,660
Auto Services - 0.06%
ERAC USA Finance Company
6.375% due 10/15/2017 (h)		320,000		271,084
7.95% due 12/15/2009 (h)		10,000		10,183
United Rentals North America, Inc.
7.75% due 11/15/2013		100,000		79,000
				360,267
Automobiles - 0.09%
DaimlerChrysler N.A. Holding Corp.
5.875% due 03/15/2011		395,000		397,785
General Motors Corp.
7.125% due 07/15/2013		275,000		148,500
				546,285

 

The accompanying notes are an integral part of the financial statements.

69

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Banking - 2.31%
Allied Irish Banks PLC
7.50% due 12/29/2049 (b)	EUR	1,000	$	1,361
BAC Capital Trust XIII
3.1762% due 03/15/2043 (b)	$	640,000		423,357
BAC Capital Trust XV
3.4819% due 06/01/2056 (b)		925,000		718,887
Banco Mercantil del Norte SA
6.862% due 10/13/2021 (h)		435,000		403,811
Banco Santander Chile
3.0269% due 12/09/2009 (b)(h)		18,000		17,688
5.375% due 12/09/2014 (h)		5,000		4,927
Bank of America Corp., MTN
4.90% due 05/01/2013		1,000,000		967,820
Bank of Ireland
6.45% due 02/10/2010	EUR	1,000		1,478
BNP Paribas
7.195% due 12/31/2049 (b)(h)	$	190,000		165,845
Chuo Mitsui Trust & Banking Company
5.506% due 12/29/2049 (b)(h)		350,000		289,031
Comerica Capital Trust II
6.576% due 02/20/2037 (b)		1,000,000		519,580
HBOS PLC
5.375% due 12/29/2049 (b)(h)		22,000		16,740
6.413% due 09/29/2049 (b)(h)		450,000		281,205
HSBC Holdings PLC
6.50% due 09/15/2037		435,000		396,652
Independence Community Bank Corp.
3.75% due 04/01/2014 (b)		5,000		3,676
Landsbanki Islands HF
3.5106% due 08/25/2009 (b)(h)		490,000		456,837
6.10% due 08/25/2011 (h)		295,000		256,375
7.431% due 12/31/2049 (b)(h)		805,000		484,489
Lloyds TSB Group PLC
6.267% due 12/31/2049 (b)(h)		545,000		431,285
Mellon Capital IV, Series 1
6.244% due 06/29/2049 (b)		400,000		305,542
Natixis
10.00% due 04/29/2049 (b)(h)		325,000		314,842
Northern Trust Company
6.50% due 08/15/2018		190,000		196,167
Rabobank Capital Funding II
5.26% due 12/31/2049 (b)(h)		790,000		727,414
RBS Capital Trust IV
3.6006% due 09/29/2049 (b)		18,000		13,245
Royal Bank of Scotland Group PLC
7.648% due 08/31/2049 (b)		580,000		547,200
Royal Bank of Scotland Group PLC, MTN
7.64% due 03/31/2049		300,000		253,427
Shinhan Bank
6.819% due 09/20/2036 (b)		515,000		432,028
Silicon Valley Bank
6.05% due 06/01/2017		415,000		358,393
Standard Chartered PLC
6.40% due 09/26/2017 (h)		1,000,000		946,472
6.409% due 01/30/2017 (b)(h)		1,215,000		963,962
SunTrust Capital VIII
6.10% due 12/01/2066 (b)		630,000		429,390
SunTrust Preferred Capital I
5.853% due 12/31/2049 (b)		605,000		387,200

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Banking (continued)
TuranAlem Finance BV
7.875% due 06/02/2010	$	12,000	$	10,831
USB Capital IX
6.189% due 03/29/2049 (b)		2,025,000		1,326,375
Wachovia Capital Trust III
5.80% due 03/15/2042 (b)		915,000		494,100
				13,547,632
Broadcasting - 0.19%
News America Holdings, Inc.
6.75% due 01/09/2038		2,000		2,043
7.75% due 12/01/2045		9,000		9,264
8.25% due 08/10/2018		375,000		414,202
News America, Inc.
6.65% due 11/15/2037		415,000		400,075
XM Satellite Radio Holdings, Inc.
13.00% due 08/01/2013		360,000		316,800
				1,142,384
Building Materials & Construction - 0.31%
CRH America, Inc.
8.125% due 07/15/2018		425,000		433,461
Masco Corp.
5.85% due 03/15/2017		705,000		602,856
USG Corp.
6.30% due 11/15/2016		1,000,000		800,000
				1,836,317
Business Services - 0.32%
Electronic Data Systems Corp.
7.125% due 10/15/2009		2,000		2,066
Minerva Overseas, Ltd.
9.50% due 02/01/2017 (h)		460,000		424,350
Science Applications International Corp.
5.50% due 07/01/2033		825,000		670,517
Sotheby’s
7.75% due 06/15/2015		360,000		349,200
Xerox Corp.
6.75% due 02/01/2017		435,000		439,851
				1,885,984
Cable & Television - 1.07%
AT&T Broadband Corp.
8.375% due 03/15/2013		310,000		342,408
CCH II LLC / CCH II Capital Corp.
10.25% due 10/01/2013 (h)		312,000		276,900
Cox Communications, Inc.
4.625% due 01/15/2010		22,000		21,850
5.45% due 12/15/2014		218,000		212,656
6.75% due 03/15/2011		209,000		216,778
7.75% due 11/01/2010		207,000		218,414
Rogers Cable, Inc.
6.75% due 03/15/2015		300,000		307,708
TCI Communications, Inc.
9.80% due 02/01/2012		315,000		354,332
Time Warner Cable, Inc.
6.75% due 07/01/2018		475,000		479,554
Time Warner Companies, Inc.
7.57% due 02/01/2024		34,000		34,435

 

The accompanying notes are an integral part of the financial statements.

70

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Cable & Television (continued)
Time Warner Entertainment Company LP
8.375% due 07/15/2033	$	535,000	$	573,529
8.375% due 03/15/2023		335,000		365,713
Time Warner, Inc.
6.75% due 04/15/2011		575,000		588,416
7.625% due 04/15/2031		9,000		9,006
Viacom, Inc.
5.75% due 04/30/2011		1,000,000		992,119
6.625% due 05/15/2011		575,000		577,431
6.875% due 04/30/2036		760,000		686,310
				6,257,559
Cellular Communications - 0.21%
America Movil SAB de CV
5.75% due 01/15/2015		305,000		304,109
American Tower Corp.
7.50% due 05/01/2012		12,000		12,240
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		211,000		225,698
8.75% due 03/01/2031		209,000		249,645
Nextel Communications, Inc.
6.875% due 10/31/2013		435,000		357,788
Rogers Wireless, Inc.
9.625% due 05/01/2011		8,000		8,821
Rural Cellular Corp.
8.5506% due 11/01/2012 (b)		60,000		61,200
				1,219,501
Chemicals - 0.33%
American Pacific Corp.
9.00% due 02/01/2015		425,000		412,250
Ecolab, Inc.
4.875% due 02/15/2015		350,000		346,750
ICI Wilmington, Inc.
4.375% due 12/01/2008		218,000		218,134
Momentive Performance Materials, Inc.
9.75% due 12/01/2014		480,000		433,200
Nova Chemicals, Ltd.
7.875% due 09/15/2025		265,000		209,350
Sterling Chemicals, Inc.
10.25% due 04/01/2015 (h)		305,000		303,475
				1,923,159
Chemicals-Diversified - 0.11%
The Dow Chemical Company
5.70% due 05/15/2018		700,000		669,291
Computers & Business Equipment - 0.09%
Cisco Systems, Inc.
5.50% due 02/22/2016		510,000		518,197
Containers & Glass - 0.14%
BWAY Corp.
10.00% due 10/15/2010		407,000		404,965
Smurfit-Stone Container Enterprises, Inc.
8.00% due 03/15/2017		435,000		348,000
US Corrugated, Inc.
10.00% due 06/12/2013		110,000		79,200
				832,165

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas - 0.34%
Apache Corp.
5.625% due 01/15/2017	$	1,000,000	$	1,012,225
Chesapeake Energy Corp.
7.25% due 12/15/2018		1,000,000		975,000
Premcor Refining Group, Inc.
7.50% due 06/15/2015		4,000		4,135
				1,991,360
Domestic Oil - 0.04%
Devon Financing Corp., ULC
6.875% due 09/30/2011		205,000		217,782
Drugs & Health Care - 0.04%
Allegiance Corp.
7.00% due 10/15/2026		205,000		205,605
Electrical Utilities - 3.29%
AES Eastern Energy LP, Series 99-A
9.00% due 01/02/2017		609,893		649,537
AES Gener SA
7.50% due 03/25/2014		218,000		231,625
American Electric Power Company, Inc.
5.25% due 06/01/2015		210,000		200,076
Appalachian Power Company
5.80% due 10/01/2035		39,000		33,484
7.00% due 04/01/2038		425,000		424,019
Arizona Public Service Company
5.50% due 09/01/2035		222,000		170,537
CenterPoint Energy Houston Electric LLC, Series K2
6.95% due 03/15/2033		10,000		10,037
CenterPoint Energy Resources Corp.
7.875% due 04/01/2013		235,000		249,765
CenterPoint Energy Resources Corp., MTN
6.00% due 05/15/2018		1,000,000		950,956
CenterPoint Energy, Inc.
6.50% due 05/01/2018		1,000,000		977,926
Commonwealth Edison Company
5.80% due 03/15/2018		500,000		487,016
Constellation Energy Group, Inc.
4.55% due 06/15/2015		815,000		724,194
7.60% due 04/01/2032		360,000		353,472
Dominion Resources, Inc.
5.00% due 03/15/2013		575,000		569,898
5.70% due 09/17/2012		207,000		209,803
6.30% due 09/30/2066 (b)		800,000		726,730
7.50% due 06/30/2066 (b)		320,000		288,191
Empresa Nacional De Electricidad
8.50% due 04/01/2009		8,000		8,173
Enel Finance International SA
6.25% due 09/15/2017 (h)		565,000		572,994
Enersis SA
7.375% due 01/15/2014		12,000		12,762
Entergy Louisiana LLC
8.09% due 01/02/2017		484,331		488,211
FirstEnergy Corp.
6.45% due 11/15/2011		209,000		214,715
7.375% due 11/15/2031		226,000		242,462
Funding Corp.
9.00% due 06/01/2017		924,000		979,884

 

The accompanying notes are an integral part of the financial statements.

71

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Electrical Utilities (continued)
Indiantown Cogeneration LP, Series A-9
9.26% due 12/15/2010	$	62,624	$	64,930
Ipalco Enterprises, Inc.
8.625% due 11/14/2011		365,000		379,600
Israel Electric Corp., Ltd.
7.25% due 01/15/2019 (h)		1,720,000		1,736,732
Midwest Generation LLC, Series B
8.56% due 01/02/2016		262,962		271,508
National Grid PLC
6.30% due 08/01/2016		485,000		481,576
Nevada Power Company
5.875% due 01/15/2015		370,000		366,321
6.65% due 04/01/2036		530,000		515,753
Pacific Gas & Electric Company
4.20% due 03/01/2011		246,000		245,412
4.80% due 03/01/2014		212,000		207,854
Peco Energy Company
5.35% due 03/01/2018		1,000,000		990,181
PSEG Power LLC
5.00% due 04/01/2014		214,000		204,815
8.625% due 04/15/2031		214,000		259,656
San Diego Gas & Electric Company, Series FFF
6.125% due 09/15/2037		1,000,000		1,004,985
Scottish Power PLC
4.91% due 03/15/2010		225,000		225,647
Sierra Pacific Power Company, Series M
6.00% due 05/15/2016		840,000		826,526
Taqa Abu Dhabi National Energy Company
5.62% due 10/25/2012 (h)		335,000		328,900
6.50% due 10/27/2036 (h)		570,000		499,430
Texas Competitive Electric Holdings Company LLC
10.25% due 11/01/2015 (h)		470,000		468,825
United Energy Distribution Property, Ltd.
4.70% due 04/15/2011 (h)		6,000		6,100
Virginia Electric and Power Company
6.00% due 01/15/2036		500,000		473,169
				19,334,387
Electronics - 0.16%
Jabil Circuit, Inc.
5.875% due 07/15/2010		17,000		16,745
Tyco Electronics Group SA
6.55% due 10/01/2017		910,000		912,775
				929,520
Energy - 0.26%
Duke Capital LLC
6.75% due 02/15/2032		511,000		478,303
Enterprise Products Operating LP
4.95% due 06/01/2010		210,000		209,738
Enterprise Products Operating LP, Series B
6.875% due 03/01/2033		209,000		200,769
Nexen, Inc.
5.875% due 03/10/2035		212,000		179,664
Salton Sea Funding Corp., Series F
7.475% due 11/30/2018		222,941		229,732
Sempra Energy
4.75% due 05/15/2009		208,000		209,033
				1,507,239

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Financial Services - 8.66%
Allied Capital Corp.
6.625% due 07/15/2011	$	255,000	$	246,401
American Express Bank FSB, BKNT
6.00% due 09/13/2017		805,000		739,549
American Express Company
7.00% due 03/19/2018		1,065,000		1,045,897
American Express Credit Corp., Series C
7.30% due 08/20/2013		575,000		584,110
American General Finance Corp.
6.90% due 12/15/2017		335,000		268,356
Astoria Depositor Corp.
8.144% due 05/01/2021 (h)		600,000		583,687
AXA Financial, Inc.
7.75% due 08/01/2010		210,000		219,780
Bear Stearns Companies, Inc.
7.25% due 02/01/2018		360,000		373,007
Bear Stearns Companies, Inc., MTN
2.9994% due 11/28/2011 (b)		640,000		622,376
Bosphorus Financial Services, Ltd.
4.6044% due 02/15/2012 (b)(h)		328,125		316,991
Bunge Ltd. Finance Corp.
5.35% due 04/15/2014		430,000		399,513
5.875% due 05/15/2013		25,000		24,331
Capmark Financial Group, Inc.
5.875% due 05/10/2012		1,300,000		838,950
Caterpillar Financial Services Corp.
4.50% due 06/15/2009		210,000		211,664
Caterpillar Financial Services Corp., MTN
5.45% due 04/15/2018		870,000		865,673
CIT Group Funding Company of Canada
4.65% due 07/01/2010		350,000		301,825
CIT Group, Inc.
5.00% due 02/13/2014		95,000		68,405
5.65% due 02/13/2017		125,000		87,778
6.00% due 04/01/2036		1,000,000		666,111
6.10% due 03/15/2067 (b)		630,000		245,540
CIT Group, Inc., MTN
5.125% due 09/30/2014		95,000		68,101
Citigroup, Inc.
5.50% due 04/11/2013		1,230,000		1,186,185
5.625% due 08/27/2012		219,000		208,861
6.125% due 11/21/2017		800,000		752,278
8.40% due 04/29/2049 (b)		1,305,000		1,107,971
CNOOC Finance 2003, Ltd.
5.50% due 05/21/2033 (h)		10,000		8,813
Credit Suisse First Boston USA, Inc.
2.89% due 11/20/2009 (b)		1,220,000		1,211,766
6.50% due 01/15/2012		209,000		217,096
Dresdner Bank-New York
7.25% due 09/15/2015		211,000		205,915
ERP Operating LP
4.75% due 06/15/2009		13,000		12,905
ESI Tractebel Acquisition Corp., Series B
7.99% due 12/30/2011		428,000		435,490
Ford Motor Credit Company LLC
9.75% due 09/15/2010		468,000		407,727
9.875% due 08/10/2011		180,000		147,762
FPL Group Capital, Inc.
6.35% due 10/01/2066 (b)		650,000		550,447

 

The accompanying notes are an integral part of the financial statements.

72

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Financial Services (continued)
Fund American Companies, Inc.
5.875% due 05/15/2013	$	214,000	$	200,706
General Electric Capital Corp.
5.45% due 01/15/2013		261,000		264,706
5.625% due 05/01/2018		350,000		340,277
Goldman Sachs Capital II
5.793% due 12/29/2049 (b)		760,000		471,040
Goldman Sachs Group, Inc.
6.75% due 10/01/2037		370,000		325,546
Harley-Davidson Funding Corp.
6.80% due 06/15/2018 (h)		1,000,000		976,759
Huntington Capital III
6.65% due 05/15/2037 (b)		375,000		179,865
HVB Funding Trust III
9.00% due 10/22/2031 (h)		10,000		8,974
Independencia International, Ltd.
9.875% due 01/31/2017 (h)		290,000		277,675
9.875% due 05/15/2015 (h)		100,000		98,380
International Lease Finance Corp.
3.50% due 04/01/2009		213,000		208,189
4.55% due 10/15/2009		7,000		6,758
4.75% due 07/01/2009		30,000		29,318
5.00% due 04/15/2010		211,000		201,565
5.875% due 05/01/2013		215,000		189,025
6.375% due 03/25/2013		1,000,000		894,279
International Lease Finance Corp., MTN
5.45% due 03/24/2011		1,200,000		1,091,998
International Lease Finance Corp., Series P
3.1906% due 01/15/2010 (b)		13,000		11,993
Jefferies Group, Inc.
6.45% due 06/08/2027		210,000		161,561
John Deere Capital Corp., Series D
4.125% due 01/15/2010		39,000		39,030
JP Morgan Chase & Company
6.75% due 02/01/2011		218,000		226,600
JP Morgan Chase & Company, Series L
7.90% due 12/31/2049 (b)		2,070,000		1,880,595
JP Morgan Chase Capital XX, Series T
6.55% due 09/29/2036		750,000		617,112
JP Morgan Chase Capital XXIII
3.8044% due 05/15/2047 (b)		915,000		700,061
Kaupthing Bank HF
5.75% due 10/04/2011 (h)		750,000		610,196
Lehman Brothers Holdings, Inc., MTN
3.375% due 01/26/2017 (b)		1,120,000		789,223
MBNA Capital, Series B
3.6006% due 02/01/2027 (b)		23,000		18,377
Merrill Lynch & Company, Inc.
3.3412% due 05/02/2017 (b)		800,000		567,130
7.75% due 05/14/2038		1,855,000		1,665,178
Merrill Lynch & Company, Inc., MTN
2.9031% due 06/05/2012 (b)		472,000		410,879
6.15% due 04/25/2013		1,500,000		1,421,452
6.875% due 04/25/2018		1,535,000		1,413,749
Mizuho Financial Group (Cayman), Ltd.
8.375% due 12/29/2049		455,000		454,691
Morgan Stanley
3.235% due 10/18/2016 (b)		830,000		681,715
4.25% due 05/15/2010		232,000		228,935

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Financial Services (continued)
Morgan Stanley, MTN
5.95% due 12/28/2017	$	1,010,000	$	898,812
6.625% due 04/01/2018		1,565,000		1,454,077
Morgan Stanley, MTN, Series G
5.75% due 08/31/2012		760,000		746,213
Nelnet, Inc.
7.40% due 09/29/2036 (b)		400,000		267,083
NiSource Finance Corp.
6.15% due 03/01/2013		219,000		217,520
6.80% due 01/15/2019		350,000		340,406
7.875% due 11/15/2010		216,000		224,454
Osiris Capital PLC, Series C
5.6406% due 01/15/2010 (b)(h)		920,000		911,822
Osiris Capital PLC, Series D
7.7906% due 01/15/2010 (b)(h)		360,000		361,742
PNC Financial Services Group, Inc.
8.25% due 12/31/2049 (b)		760,000		723,870
PNC Funding Corp.
2.9388% due 01/31/2012 (b)		1,000,000		943,944
4.50% due 03/10/2010		1,500,000		1,500,508
Popular North America, Inc.
4.70% due 06/30/2009		12,000		11,895
QBE Capital Funding II LP
6.797% due 06/01/2049 (b)(h)		430,000		348,359
Reliastar Financial Corp.
6.50% due 11/15/2008		14,000		14,084
Schwab Capital Trust I
7.50% due 11/15/2037 (b)		1,435,000		1,236,052
Skandinaviska Enskilda Banken AB
5.471% due 03/29/2049 (b)(h)		400,000		334,476
SLM Corp.
3.10% due 01/27/2014 (b)		1,840,000		1,459,046
4.50% due 07/26/2010		410,000		372,997
SLM Corp., MTN
8.45% due 06/15/2018		475,000		435,563
SLM Corp., MTN, Series A
2.94% due 07/27/2009 (b)		1,000,000		947,708
SLM Corp., MTN, Series X
2.8763% due 03/16/2009 (b)		600,000		577,543
SMFG Preferred Capital
6.078% due 01/29/2049 (b)(h)		400,000		325,596
Sovereign Capital Trust VI
7.908% due 06/13/2036		295,000		225,969
Tate & Lyle International Finance PLC
5.00% due 11/15/2014 (h)		208,000		190,146
Teco Finance, Inc.
6.572% due 11/01/2017		162,000		155,619
7.00% due 05/01/2012		233,000		235,416
Ucar Finance, Inc.
10.25% due 02/15/2012		39,000		40,170
Vita Capital III, Ltd., Series B-I
3.8913% due 01/01/2011 (b)(h)		870,000		841,551
Waddell & Reed Financial, Inc.
5.60% due 01/15/2011		400,000		401,530
Wells Fargo Capital XIII, MTN, Series G
7.70% due 12/29/2049 (b)		1,000,000		949,614

 

The accompanying notes are an integral part of the financial statements.

73

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Financial Services (continued)
Westfield Capital Corp., Ltd.
4.375% due 11/15/2010 (h)	$	214,000	$	210,834
				50,799,417
Food & Beverages - 1.01%
ASG Consolidated LLC/ASG Finance, Inc. zero coupon, step up to 11.50% on
11/01/2008 due 11/01/2011		395,000		363,400
Cargill, Inc.
6.125% due 09/15/2036 (h)		665,000		603,724
General Mills, Inc.
5.65% due 09/10/2012		600,000		614,685
5.70% due 02/15/2017		245,000		243,211
Kellogg Company, Series B
6.60% due 04/01/2011		209,000		220,985
Kraft Foods, Inc.
5.625% due 11/01/2011		219,000		222,406
Kroger Company
6.40% due 08/15/2017		980,000		1,001,353
McCormick & Company, Inc.
5.75% due 12/15/2017		1,000,000		961,559
Nabisco, Inc.
7.55% due 06/15/2015		229,000		245,597
SABMiller PLC
6.50% due 07/15/2018 (h)		405,000		404,670
Smithfield Foods, Inc.
7.00% due 08/01/2011		18,000		17,100
Supervalu, Inc.
7.50% due 11/15/2014		500,000		495,000
Tesco PLC
6.15% due 11/15/2037 (h)		570,000		506,914
				5,900,604
Gas & Pipeline Utilities - 1.88%
Buckeye Partners LP
5.125% due 07/01/2017		225,000		207,433
Dynegy-Roseton Danskammer, Series B
7.67% due 11/08/2016		360,000		352,350
Energy Transfer Partners LP
6.70% due 07/01/2018		1,000,000		1,009,900
7.50% due 07/01/2038		1,440,000		1,462,245
Kinder Morgan Energy Partners LP
5.80% due 03/15/2035		208,000		177,202
7.30% due 08/15/2033		212,000		217,665
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., Series B
8.50% due 07/15/2016		330,000		330,000
Michigan Consolidated Gas Company
5.70% due 03/15/2033		14,000		12,766
NGPL Pipeco LLC
7.119% due 12/15/2017 (h)		1,420,000		1,433,683
ONEOK Partners LP
6.65% due 10/01/2036		545,000		517,314
Southern Union Company
7.20% due 11/01/2066 (b)		950,000		767,113
Spectra Energy Capital LLC
6.20% due 04/15/2018		3,290,000		3,211,336
Targa Resources Partners LP
8.25% due 07/01/2016		280,000		254,800

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
TEPPCO Partners LP
7.00% due 06/01/2067 (b)	$	705,000	$	623,841
Texas Eastern Transmission LP
6.00% due 09/15/2017 (h)		485,000		479,044
				11,056,692
Healthcare Products - 0.05%
Covidien International Finance SA
6.00% due 10/15/2017		275,000		278,753
Healthcare Services - 0.33%
Coventry Health Care, Inc.
5.875% due 01/15/2012		225,000		219,576
6.30% due 08/15/2014		420,000		395,481
UnitedHealth Group, Inc.
4.875% due 02/15/2013		225,000		218,477
5.375% due 03/15/2016		240,000		225,268
5.50% due 11/15/2012		235,000		232,642
5.80% due 03/15/2036		115,000		93,267
WellPoint, Inc.
5.00% due 12/15/2014		208,000		192,897
6.375% due 06/15/2037		415,000		373,600
				1,951,208
Holdings Companies/Conglomerates - 0.19%
General Electric Company
5.00% due 02/01/2013		1,057,000		1,068,924
SPI Electricity & Gas Australia Holdings Party, Ltd.
6.15% due 11/15/2013 (h)		16,000		16,195
				1,085,119
Homebuilders - 0.35%
Centex Corp.
4.55% due 11/01/2010		1,200,000		1,068,000
5.80% due 09/15/2009		830,000		805,100
Pulte Homes, Inc.
6.25% due 02/15/2013		210,000		191,100
				2,064,200
Hotels & Restaurants - 0.20%
Marriott International, Inc.
4.625% due 06/15/2012		26,000		24,091
Starbucks Corp.
6.25% due 08/15/2017		430,000		419,649
Starwood Hotels & Resorts Worldwide, Inc.
6.25% due 02/15/2013		340,000		322,051
Yum! Brands, Inc.
6.25% due 03/15/2018		405,000		392,025
				1,157,816
Household Products - 0.24%
Clorox Company
5.00% due 03/01/2013		600,000		594,064
5.95% due 10/15/2017		500,000		499,614
Yankee Acquisition Corp., Series B
8.50% due 02/15/2015		415,000		319,550
				1,413,228
Industrial Machinery - 0.14%
Caterpillar, Inc.
7.25% due 09/15/2009		213,000		219,816

 

The accompanying notes are an integral part of the financial statements.

74

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Industrial Machinery (continued)
Weatherford International, Ltd.
6.50% due 08/01/2036	$	600,000	$	578,301
				798,117
Industrials - 0.17%
Parker Hannifin Corp., Series MTN
5.50% due 05/15/2018		1,000,000		1,007,074
Insurance - 3.18%
Allied World Assurance Holdings, Ltd.
7.50% due 08/01/2016		1,490,000		1,412,697
American International Group, Inc.
8.175% due 05/15/2058 (b)(h)		1,025,000		791,692
AON Capital Trust A
8.205% due 01/01/2027		390,000		364,379
Assurant, Inc.
5.625% due 02/15/2014		209,000		193,134
6.75% due 02/15/2034		550,000		454,253
AXA SA
6.379% due 12/14/2049 (b)(h)		585,000		456,980
6.463% due 12/31/2049 (b)(h)		275,000		216,134
Catlin Insurance Company, Ltd.
7.249% due 12/31/2049 (b)(h)		500,000		301,189
Chubb Corp.
5.75% due 05/15/2018		200,000		191,896
Cigna Corp.
6.15% due 11/15/2036		500,000		435,749
Cincinnati Financial Corp.
6.92% due 05/15/2028		960,000		902,359
CNA Financial Corp.
6.00% due 08/15/2011		280,000		283,898
Endurance Specialty Holdings, Ltd.
7.00% due 07/15/2034		800,000		673,745
Financial Security Assurance Holdings, Ltd.
6.40% due 12/15/2066 (b)(h)		795,000		468,119
First American Corp.
7.55% due 04/01/2028		290,000		293,834
Foundation Re II, Ltd.
9.5569% due 11/26/2010 (b)(h)		250,000		249,926
Genworth Financial, Inc.
6.15% due 11/15/2066 (b)		790,000		568,816
Hartford Financial Services Group, Inc.
4.625% due 07/15/2013		8,000		7,648
Horace Mann Educators Corp.
6.85% due 04/15/2016		210,000		222,275
Liberty Mutual Group, Inc.
6.50% due 03/15/2035 (h)		683,000		532,896
7.50% due 08/15/2036 (h)		1,470,000		1,269,605
7.80% due 03/15/2037 (h)		455,000		342,144
Lincoln National Corp.
6.05% due 04/20/2067 (b)		495,000		388,147
7.00% due 05/17/2066 (b)		555,000		482,644
Markel Corp.
6.80% due 02/15/2013		325,000		337,283
Merna Reinsurance, Ltd., Series B
4.5506% due 07/07/2010 (b)(h)		1,000,000		960,600
Mystic Re, Ltd.
8.9818% due 12/05/2008 (b)(h)		250,000		246,450
Ohio Casualty Corp.
7.30% due 06/15/2014		380,000		385,409

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Insurance (continued)
PartnerRe Finance II
6.44% due 12/01/2066 (b)	$	895,000	$	701,216
Progressive Corp.
6.70% due 06/15/2037 (b)		225,000		184,345
Prudential Financial, Inc.
4.75% due 04/01/2014		227,000		211,233
Prudential Financial, Inc., MTN
5.15% due 01/15/2013		540,000		529,437
StanCorp Financial Group, Inc.
6.90% due 05/29/2067 (b)		825,000		696,582
Symetra Financial Corp.
6.125% due 04/01/2016 (h)		350,000		304,639
8.30% due 10/15/2037 (b)(h)		310,000		257,643
Transatlantic Holdings, Inc.
5.75% due 12/14/2015		575,000		548,240
W.R. Berkley Corp.
5.125% due 09/30/2010		900,000		899,822
6.15% due 08/15/2019		14,000		12,981
White Mountains Re Group, Ltd.
7.506% due 05/29/2049 (b)(h)		685,000		525,783
XL Capital, Ltd.
5.25% due 09/15/2014		214,000		193,612
XL Capital, Ltd., Series E
6.50% due 12/31/2049 (b)		275,000		165,000
				18,664,434
International Oil - 0.36%
ConocoPhillips Canada Funding Company
5.95% due 10/15/2036		1,000,000		999,923
Delek & Avner-Yam Tethys, Ltd.
5.326% due 08/01/2013 (h)		186,361		187,393
Gaz Capital SA
8.146% due 04/11/2018 (h)		650,000		641,875
Pemex Project Funding Master Trust
4.0763% due 06/15/2010 (b)(h)		18,000		18,018
Ras Laffan Liquefied Natural Gas Company, Ltd.
3.437% due 09/15/2009 (h)		7,938		7,946
Ras Laffan Liquefied Natural Gas Company, Ltd. III
5.838% due 09/30/2027 (h)		330,000		277,754
				2,132,909
Leisure Time - 1.10%
AMC Entertainment, Inc.
8.00% due 03/01/2014		495,000		446,737
Cinemark, Inc.
zero coupon, step up to 9.75% on
03/15/2009 due 03/15/2014		150,000		144,750
FireKeepers Development Authority
13.875% due 05/01/2015 (h)		180,000		166,050
Fontainebleau Las Vegas Holdings
10.25% due 06/15/2015 (h)		350,000		165,375
Greektown Holdings LLC
10.75% due 12/01/2013 (h)		220,000		166,100
Indianapolis Downs Capital LLC
11.00% due 11/01/2012 (h)		225,000		178,875
Isle of Capri Casinos, Inc.
7.00% due 03/01/2014		440,000		314,600
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		310,000		220,100

 

The accompanying notes are an integral part of the financial statements.

75

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Leisure Time (continued)
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 (h)	$	460,000	$	382,950
Mashantucket Western Pequot Tribe
8.50% due 11/15/2015 (h)		85,000		62,050
MGM Mirage, Inc.
6.00% due 10/01/2009		16,000		15,680
Mohegan Tribal Gaming Authority
6.375% due 07/15/2009		208,000		201,240
8.00% due 04/01/2012		150,000		127,500
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		185,000		152,163
9.75% due 04/01/2010		285,000		277,163
Seminole Indian Tribe of Florida
6.535% due 10/01/2020 (h)		405,000		397,256
Turning Stone Resort Casino
9.125% due 09/15/2014 (h)		370,000		356,125
Vivendi
5.75% due 04/04/2013		2,515,000		2,473,032
Waterford Gaming LLC
8.625% due 09/15/2014 (h)		235,000		219,138
				6,466,884
Liquor - 0.00%
Anheuser-Busch Companies, Inc.
6.50% due 02/01/2043		10,000		8,916
Manufacturing - 0.14%
GRUPO KUO SAB de CV
9.75% due 10/17/2017 (h)		330,000		330,000
Ingersoll-Rand Global Holding Company, Ltd.
6.875% due 08/15/2018		465,000		467,133
				797,133
Medical-Hospitals - 0.15%
Community Health Systems, Inc.
8.875% due 07/15/2015		305,000		308,050
Humana, Inc.
8.15% due 06/15/2038		590,000		588,541
				896,591
Metal & Metal Products - 0.15%
Alcan, Inc.
5.00% due 06/01/2015		6,000		5,584
Blaze Recycling & Metals LLC
10.875% due 07/15/2012 (h)		210,000		212,625
CII Carbon LLC
11.125% due 11/15/2015 (h)		405,000		398,925
Commercial Metals Company
7.35% due 08/15/2018		270,000		271,665
				888,799
Mining - 0.28%
Corporacion Nacional del Cobre
5.50% due 10/15/2013 (h)		209,000		214,391
Drummond Company, Inc.
7.375% due 02/15/2016 (h)		465,000		410,363
Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/2017		300,000		318,000
Rio Tinto Finance USA, Ltd.
6.50% due 07/15/2018		405,000		407,476

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Mining (continued)
Vedanta Resources PLC
8.75% due 01/15/2014 (h)	$	315,000	$	313,425
				1,663,655
Oil Comp-Integrated - 0.05%
Petro-Canada
6.05% due 05/15/2018		320,000		309,857
Oil Field Mach&Equip - 0.15%
BJ Services Company
6.00% due 06/01/2018		880,000		895,462
Paper - 0.18%
International Paper Company
7.95% due 06/15/2018		395,000		401,335
Plum Creek Timberlands LP
5.875% due 11/15/2015		320,000		296,985
Verso Paper, Inc., Series B
9.125% due 08/01/2014		380,000		357,200
				1,055,520
Petroleum Services - 0.45%
Allis-Chalmers Energy, Inc.
8.50% due 03/01/2017		210,000		190,575
Anadarko Petroleum Corp.
6.45% due 09/15/2036		1,000,000		919,107
Enterprise Products Operating LP
7.034% due 01/15/2068 (b)		405,000		351,252
8.375% due 08/01/2066 (b)		700,000		691,632
McMoRan Exploration Company
11.875% due 11/15/2014		245,000		252,350
Valero Logistics Operations LP
6.05% due 03/15/2013		248,000		240,376
				2,645,292
Pharmaceuticals - 0.57%
Allergan, Inc.
5.75% due 04/01/2016		400,000		395,229
AstraZeneca PLC
5.90% due 09/15/2017		485,000		503,757
Hospira, Inc.
5.90% due 06/15/2014		8,000		8,107
Schering Plough Corp.
5.55% due 12/01/2013		218,000		221,223
6.00% due 09/15/2017		1,200,000		1,182,422
Teva Pharmaceutical Finance LLC
5.55% due 02/01/2016		170,000		165,132
6.15% due 02/01/2036		170,000		153,083
Wyeth
5.50% due 03/15/2013		670,000		691,357
				3,320,310
Pipelines - 0.42%
Enbridge Energy Partners LP
6.50% due 04/15/2018 (h)		600,000		599,352
Enbridge Energy Partners LP, Series B
7.50% due 04/15/2038		600,000		614,548
Plains All American Pipeline LP
6.50% due 05/01/2018 (h)		265,000		260,687

 

The accompanying notes are an integral part of the financial statements.

76

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Pipelines (continued)
Texas Gas Transmission LLC
5.50% due 04/01/2013 (h)	$	1,000,000	$	989,225
				2,463,812
Publishing - 0.13%
Idearc, Inc.
8.00% due 11/15/2016		505,000		228,513
New York Times Company
4.50% due 03/15/2010		575,000		552,224
				780,737
Railroads & Equipment - 0.13%
Union Pacific Corp.
5.70% due 08/15/2018		785,000		744,437
Real Estate - 2.42%
AvalonBay Communities, Inc.
5.50% due 01/15/2012		605,000		592,715
Boston Properties, Ltd.
6.25% due 01/15/2013		215,000		216,714
Camden Property Trust
5.00% due 06/15/2015		216,000		192,618
Colonial Properties Trust
6.25% due 06/15/2014		211,000		198,229
Colonial Realty LP
5.50% due 10/01/2015		231,000		205,063
Developers Diversified Realty Corp.
4.625% due 08/01/2010		22,000		21,353
Duke Realty LP
5.95% due 02/15/2017		1,505,000		1,386,456
6.25% due 05/15/2013		1,000,000		986,131
HCP, Inc., MTN
6.70% due 01/30/2018		600,000		528,940
Health Care Property Investors, Inc.
6.30% due 09/15/2016		750,000		650,538
Health Care Property Investors, Inc., MTN, REIT
4.875% due 09/15/2010		229,000		221,727
5.625% due 02/28/2013		520,000		479,498
Health Care, Inc.
6.00% due 11/15/2013		215,000		208,182
6.20% due 06/01/2016		680,000		632,633
Healthcare Realty Trust, Inc.
8.125% due 05/01/2011		360,000		373,336
Hospitality Properties Trust
6.75% due 02/15/2013		612,000		571,096
HRPT Properties Trust
6.65% due 01/15/2018		200,000		179,931
Kimco Realty Corp.
5.70% due 05/01/2017		775,000		680,185
Nationwide Health Properties, Inc.
6.50% due 07/15/2011		285,000		291,356
ProLogis
5.625% due 11/15/2016		425,000		374,056
6.625% due 05/15/2018		480,000		442,179
Realty Income Corp.
5.95% due 09/15/2016		560,000		505,193
Rouse Company LP
5.375% due 11/26/2013		209,000		159,198
6.75% due 05/01/2013 (h)		420,000		349,059

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Real Estate (continued)
Rouse Company LP, REIT
3.625% due 03/15/2009	$	645,000	$	622,698
Simon Property Group LP
5.75% due 12/01/2015		530,000		522,558
5.875% due 03/01/2017		595,000		554,123
Simon Property Group LP, REIT
5.625% due 08/15/2014		530,000		503,029
USB Realty Corp.
6.091% due 12/22/2049 (b)(h)		500,000		315,000
Vornado Realty LP
5.60% due 02/15/2011		800,000		779,190
Westfield Group
5.40% due 10/01/2012 (h)		475,000		451,291
				14,194,275
Retail - 0.38%
CVS Caremark Corp.
2.9819% due 06/01/2010 (b)		900,000		883,283
5.75% due 06/01/2017		400,000		391,637
6.302% due 06/01/2037 (b)		710,000		602,613
Macys Retail Holdings, Inc.
7.875% due 07/15/2015		360,000		362,790
				2,240,323
Retail Trade - 0.09%
CVS Caremark Corp.
6.125% due 08/15/2016		515,000		514,434
Software - 0.06%
Fiserv, Inc.
6.80% due 11/20/2017		330,000		335,367
Steel - 0.03%
Steel Capital SA for OAO Severstal
9.75% due 07/29/2013		195,000		194,171
Telecommunications Equipment & Services - 0.85%
Citizens Communications Company
6.25% due 01/15/2013		290,000		276,950
9.00% due 08/15/2031		900,000		780,750
Deutsche Telekom International Finance BV
6.75% due 08/20/2018		870,000		869,664
7.125% due 07/11/2011	EUR	1,000		1,523
8.50% due 06/15/2010	$	222,000		234,954
8.75 due 06/15/2030		227,000		250,193
Digicel Group, Ltd.
8.875% due 01/15/2015 (h)		400,000		375,520
Embarq Corp.
7.995% due 06/01/2036		820,000		723,628
France Telecom SA
7.75% due 03/01/2011		20,000		21,311
8.50% due 03/01/2031		220,000		263,698
SBC Communications, Inc.
4.125% due 09/15/2009		207,000		208,167
5.10% due 09/15/2014		16,000		15,825
5.625% due 06/15/2016		12,000		11,933
Singapore Telecommunications, Ltd.
6.375% due 12/01/2011 (h)		9,000		9,403
VIP Finance Ireland, Ltd. for OJSC Vimpel Communications
8.375% due 04/30/2013 (h)		640,000		618,556

 

The accompanying notes are an integral part of the financial statements.

77

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Telecommunications Equipment & Services (continued)
West Corp.
11.00% due 10/15/2016	$	425,000	$	332,563
				4,994,638
Telephone - 1.58%
AT&T, Inc.
6.30% due 01/15/2038		500,000		471,482
6.40% due 05/15/2038		390,000		372,640
BellSouth Corp.
4.20% due 09/15/2009		212,000		213,354
6.00% due 11/15/2034		820,000		743,124
British Telecommunications PLC
5.95% due 01/15/2018		405,000		384,246
Cincinnati Bell, Inc.
8.375% due 01/15/2014		405,000		383,231
Qwest Corp.
7.875% due 09/01/2011		315,000		312,637
Sprint Capital Corp.
6.375% due 05/01/2009		212,000		213,590
6.875% due 11/15/2028		1,200,000		1,020,000
8.375% due 03/15/2012		207,000		208,553
8.75% due 03/15/2032		2,685,000		2,611,163
Telecom Italia Capital SA
4.00% due 01/15/2010		670,000		660,270
4.00% due 11/15/2008		169,000		168,997
7.20% due 07/18/2036		650,000		597,740
7.721% due 06/04/2038		600,000		585,104
Verizon Communications, Inc.
6.90% due 04/15/2038		310,000		306,957
Verizon New York, Inc., Series A
6.875% due 04/01/2012		15,000		15,551
				9,268,639
Tobacco - 0.21%
Alliance One International, Inc.
8.50% due 05/15/2012		170,000		159,375
11.00% due 05/15/2012		145,000		147,537
Philip Morris International, Inc.
5.65% due 05/16/2018		620,000		609,960
Reynolds American, Inc.
7.25% due 06/01/2013		320,000		332,648
				1,249,520
Transportation - 0.14%
CMA CGM SA
7.25% due 02/01/2013 (h)		455,000		394,712
Navios Maritime Holdings, Inc.
9.50% due 12/15/2014		385,000		367,675
Overseas Shipholding Group, Inc.
8.75% due 12/01/2013		75,000		78,000
				840,387
Utility Service - 0.27%
Public Service Company of New Mexico
4.40% due 09/15/2008		13,000		12,994
7.95% due 05/15/2018		1,000,000		988,945
Veolia Environnement
6.00% due 06/01/2018		600,000		601,683
				1,603,622

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
CORPORATE BONDS (continued)
Water Treatment Systems - 0.10%
American Water Capital Corp.
6.085% due 10/15/2017	$	600,000	$	580,627
TOTAL CORPORATE BONDS (Cost $233,621,677)			$	216,526,432
MUNICIPAL BONDS - 0.20%
District of Columbia - 0.20%
George Washington University, DC, Series B
5.095% due 09/15/2032		1,175,000		1,175,000
TOTAL MUNICIPAL BONDS (Cost $1,175,000)			$	1,175,000
COLLATERALIZED MORTGAGE OBLIGATIONS - 11.14%
American Home Mortgage Assets, Series 2006-6, Class A1A
2.6619% due 12/25/2046 (b)		505,855		307,789
American Home Mortgage Assets, Series 2006-6, Class XP
3.1939% IO due 12/25/2046		8,878,783		355,151
American Home Mortgage Assets, Series 2007-5, Class XP
3.7224% IO due 06/25/2047		7,116,362		345,243
American Home Mortgage Investment Trust, Series 2007-1, Class GIOP
2.1163% IO due 05/25/2047		6,265,622		310,543
American Home Mortgage Investment Trust, Series 2004-4, Class 5A
4.44% due 02/25/2045		744,897		537,387
American Tower Trust, Series 2007-1A, Class D
5.9568% due 04/15/2037 (h)		535,000		477,905
Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3
4.128% due 07/10/2042		32,284		32,044
Banc of America Commercial Mortgage, Inc., Series 2005-2, Class AJ
4.953% due 07/10/2042 (b)		50,846		42,012
Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A4
5.3523% due 09/10/2047 (b)		470,000		443,196
Banc of America Commercial Mortgage, Inc., Series 2006-1, Class AM
5.421% due 09/10/2045 (b)		1,600,000		1,380,764
Banc of America Commercial Mortgage, Inc., Series 2006-2, Class A3
5.9013% due 05/10/2045 (b)		970,000		941,392
Banc of America Commercial Mortgage, Inc., Series 2006-3, Class A4
5.889% due 07/10/2044		775,000		732,000
Banc of America Commercial Mortgage, Inc., Series 2006-4, Class A3A
5.60% due 08/10/2013		750,000		720,356
Banc of America Funding Corp., Series 2006-B, Class 6A1
5.8809% due 03/20/2036 (b)		500,406		433,097
Banc of America Funding Corp., Series 2006-D, Class 6B1
5.9456% due 05/20/2036 (b)		324,059		102,171
Banc of America Funding Corp., Series 2007-E, Class 4A1
5.8515% due 09/20/2037 (b)		379,199		364,937

 

The accompanying notes are an integral part of the financial statements.

78

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount			Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Banc of America Large Loan, Series 2005-MIB1, Class B
2.7269% due 03/15/2022 (b)(h)	$	895,000		$	841,372
Banc of America Large Loan, Series 2006-BIX1, Class C
2.6469% due 10/15/2019 (b)(h)		1,000,000			928,737
Bank of America Commercial Mortgage, Inc., Series 2001-3, Class A1
4.89% due 04/11/2037		4,263			4,258
Bear Stearns Alt-A Trust, Series 2005-3, Class B2
5.471% due 04/25/2035 (b)		179,830			83,107
Bear Stearns Asset Backed Securities, Inc., Series 2003-AC4, Class A
5.00% due 09/25/2033		9,693	��		8,273
Bear Stearns Commercial Mortgage Securities, Inc.
1.00% due 06/11/2041 (h)		665,000			416,483
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-PWR5, Class X1
0.1275% IO due 07/11/2042 (b)		452,143			7,135
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-T16, Class X1
0.2626% IO due 02/13/2046 (b)(h)		553,702			8,074
Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PWR8, Class AJ
4.75% due 06/11/2041		47,292			38,482
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-BBA7, Class G
2.9069% due 03/15/2019 (b)(h)		700,000			623,486
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-PW14, Class D
5.412% due 12/11/2038 (h)		400,000			232,337
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-T24, Class AY
0.6022% IO due 10/12/2041		30,889,963			507,973
Bear Stearns Mortgage Funding Trust, Series 2006-AR4, Class A1
2.6819% due 12/25/2036 (b)		2,103,669			1,377,070
Chase Commercial Mortgage Securities Corp., Series 2000-2, Class C
7.928% due 07/15/2032		29,619			30,890
Chaseflex Trust, Series 2005-2, Class 4A1
5.00% due 06/25/2035		266,835			232,480
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3
5.9151% due 03/15/2049 (b)		700,000			658,306
Citigroup Mortgage Loan Trust, Inc., Series 2005-10, Class 1A5A
5.8326% due 12/25/2035 (b)		366,295			278,717
Citigroup Mortgage Loan Trust, Inc., Series 2005-5, Class 2A3
5.00% due 08/25/2035		227,459			202,723
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class C
5.3995% due 09/15/2020 (b)		190,000			141,762
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.3994% due 07/15/2044 (b)		360,000			342,597
Citigroup/Deutsche Bank Commercial Mortgage, Series 2006-CD2, Class AM
5.5916% due 01/15/2046 (b)		1,000,000			866,293

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Commercial Mortgage Pass Through Certificates, Series 2003-LB1A, Class A2
4.084% due 06/10/2038	$	49,859	$	46,580
Commercial Mortgage Pass Through Certificates, Series 2005-C6, Class B
5.3994% due 06/10/2044 (b)		49,365		37,136
Commercial Mortgage Pass Through Certificates, Series 2005-FL11, Class AJ
2.6669% due 11/15/2017 (b)(h)		515,548		489,785
Commercial Mortgage Pass-Through Certificates, Series 2006-C7, Class A3
5.8992% due 06/10/2046 (b)		585,000		569,886
Countrywide Alternative Loan Trust, Series 2006-OA3, Class X
2.4345% IO due 05/25/2036 (b)		2,852,954		65,638
Countrywide Alternative Loan Trust, Series 2005-59, Class 2X
3.1878% IO due 11/20/2035 (b)		7,590,039		260,908
Countrywide Alternative Loan Trust, Series 2006-11CB, Class 3A1
6.50% due 05/25/2036		577,175		333,860
Countrywide Alternative Loan Trust, Series 2006-OA10, Class XPP
1.8995% IO due 08/25/2046 (b)		3,757,625		278,061
Countrywide Alternative Loan Trust, Series 2006-OA8, Class X
1.9407% IO due 07/25/2046 (b)		7,024,489		238,144
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB2, Class 4A
4.5209% due 07/20/2034 (b)		1,214,610		1,050,841
Credit Suisse Mortgage Capital Certificates, Series 2006-TFLA, Class B
2.6969% due 04/15/2008 (b)(h)		870,000		815,600
Crown Castle Towers LLC, Series 2006-1A, Class F
6.649% due 11/15/2036 (h)		1,760,000		1,569,135
Crown Castle Towers LLC, Series 2006-1A, Class G
6.7954% due 11/15/2036 (h)		1,225,000		1,060,561
Crown Castle Towers LLC, Series 2005-1A, Class D
5.612% due 06/15/2035 (h)		671,000		640,738
Crown Castle Towers LLC, Series 2006-1A, Class E
6.0652% due 11/15/2036 (h)		515,000		427,996
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A4
5.435% due 09/15/2034		33,673		33,575
CS First Boston Mortgage Securities Corp., Series 2001-CP4, Class A4
6.18% due 12/15/2035		32,087		32,537
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A3
6.133% due 04/15/2037		19,746		19,991
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A4
4.283% due 10/15/2039		10,860		10,465
CS First Boston Mortgage Securities Corp., Series 2005-C1, Class AX
0.1688% IO due 02/15/2038 (h)		1,157,052		10,580
CS First Boston Mortgage Securities Corp., Series 2005-C2, Class B
5.016% due 04/15/2037		58,053		43,503

 

The accompanying notes are an integral part of the financial statements.

79

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
DSLA Mortgage Loan Trust, Series 2005-AR5, Class X2
2.764% IO due 08/19/2045	$	7,173,483	$	210,721
Federal Home Loan Mortgage Corp., Series 2005-3019, Class MD
4.75% due 01/15/2031		467,472		470,465
Federal Home Loan Mortgage Corp., Series 24989, Class PE
6.00% due 08/15/2032		356,814		361,521
Federal Home Loan Mortgage Corp., Series T-41, Class 3A
7.50% due 07/25/2032		3,538		3,849
Federal National Mortgage Association, Series 2002-W3, Class A5
7.50% due 01/25/2028		6,796		7,253
Federal National Mortgage Association, Series 2003-18, Class EX
4.00% due 06/25/2017		1,299,731		1,285,675
First Horizon Alternative Mortgage Securities, Series 2004-AA2, Class 2A1
5.0368% due 08/25/2034 (b)		1,539,128		1,310,370
First Horizon Alternative Mortgage Securities, Series 2004-AA5, Class B1
5.2176% due 11/25/2034 (b)		128,730		74,080
First Horizon Alternative Mortgage Securities, Series 2006-AA2, Class B1
6.1504% due 05/25/2036 (b)		199,059		34,994
First Union National Bank Commercial Mortgage Trust, Series 2002-C1, Class A1
5.585% due 02/12/2034		7,344		7,372
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A2
6.07% due 06/10/2038		22,214		22,447
GE Capital Commercial Mortgage Corp., Series 2002-2A, Class A3
5.349% due 08/11/2036		14,809		14,730
GE Capital Commercial Mortgage Corp., Series 2005-C1, Class XC
0.1403% IO due 06/10/2048 (b)(h)		1,682,841		17,547
GE Capital Commercial Mortgage Corp., Series 2005-C2, Class C
5.133% due 05/10/2043 (b)		43,737		32,846
Global Signal Trust, Series 2004-2A, Class D
5.093% due 12/15/2014 (h)		295,000		273,350
Global Signal Trust, Series 2006-1, Class E
6.495% due 02/15/2036 (h)		367,000		341,252
Global Tower Partners Acquisition Partners LLC, Series 2007-1A, Class F
7.0496% due 05/15/2037 (h)		135,000		127,027
GMAC Commercial Mortgage Securities, Inc., Series 2003-C2, Class B
5.6826% due 05/10/2040 (b)		1,370,000		1,344,721
GMAC Mortgage Corp. Loan Trust, Series 2006-AR1, Class 2A1
5.6326% due 03/19/2036 (b)		277,085		219,419
Greenpoint Mortgage Funding Trust, Series 2005-AR1, Class A3
2.7519% due 06/25/2045 (b)		138,227		98,280
Greenpoint Mortgage Funding Trust, Series 2005-AR4, Class 4A2
2.8319% due 10/25/2045 (b)		623,417		354,021

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Greenpoint Mortgage Funding Trust, Series 2006-AR1, Class A2A
2.8419% due 02/25/2036 (b)	$	1,007,779	$	481,494
Greenwich Capital Commercial Funding Corp, Series 2007-GG9, Class C
5.554% due 02/10/2017		315,000		191,469
Greenwich Capital Commercial Funding Corp, Series 2007-GG9, Class F
5.633% due 02/10/2017		170,000		77,945
Greenwich Capital Commercial Funding Corp., Series 2002-C1, Class A2
4.112% due 01/11/2017		19,240		18,736
GS Mortgage Securities Corp. II, Series 2004-GG2, Class E
5.7594% due 08/10/2038 (b)		800,000		564,105
GS Mortgage Securities Corp. II, Series 2005-GG4, Class XC
0.2376% IO due 07/10/2039 (b)(h)		2,039,956		30,713
GS Mortgage Securities Corp. II, Series 2006-GG6, Class AM
5.622% due 04/10/2038 (b)		1,350,000		1,182,804
GSR Mortgage Loan Trust, Series 2004-14, Class 3A2
6.6825% due 12/25/2034 (b)		400,766		362,784
GSR Mortgage Loan Trust, Series 2004-9, Class B1
4.525% due 08/25/2034 (b)		301,455		231,120
GSR Mortgage Loan Trust, Series 2006-AR1, Class 3A1
5.3735% due 01/25/2036 (b)		746,508		645,339
Harborview Mortgage Loan Trust, Series 2005-16, Class 2A1B
2.7956% due 01/19/2036 (b)		338,610		152,084
Harborview Mortgage Loan Trust, Series 2005-8, Class 1X
3.0689% IO due 09/19/2035 (b)		5,118,547		113,568
Harborview Mortgage Loan Trust, Series 2006-SB1, Class A1A
3.929% due 12/19/2036 (b)		705,666		407,849
Harborview Mortgage Loan Trust, Series 2007-3, Class ES
0.35% IO due 05/19/2047		15,717,199		98,232
Harborview Mortgage Loan Trust, Series 2007-4, Class ES
0.35% IO due 07/19/2047		15,839,360		103,946
Harborview Mortgage Loan Trust, Series 2007-6, Class ES
0.3425% IO due 08/19/2037 (h)		11,023,005		68,894
IndyMac Index Mortgage Loan Trust, Series 2004-AR13, Class B1
5.2962% due 01/25/2035		185,796		94,057
Indymac Index Mortgage Loan Trust, Series 2005-AR18, Class 1X
2.9613% IO due 10/25/2036		11,682,382		262,854
Indymac Index Mortgage Loan Trust, Series 2005-AR18, Class 2X
2.6605% IO due 10/25/2036 (b)		15,411,982		221,933
IndyMac Index Mortgage Loan Trust, Series 2005-AR5, Class B1
5.5377% due 05/25/2035 (b)		299,109		144,962

 

The accompanying notes are an integral part of the financial statements.

80

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
IndyMac Index Mortgage Loan Trust, Series 2006-AR19, Class 1B1
6.3626% due 08/25/2036 (b)	$	298,363	$	27,160
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2005-LDP5, Class G
5.4995% due 12/15/2044 (b)		600,000		375,684
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2007-LD11, Class AM
6.0071% due 06/15/2049 (b)		1,660,000		1,417,892
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4
5.3445% due 12/15/2044 (b)		2,025,000		1,913,610
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C1, Class A3
5.376% due 07/12/2037		51,734		51,010
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CBX, Class A2
3.89% due 01/12/2037		8,060		8,004
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4
6.0654% due 04/15/2045 (b)		490,000		462,232
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP8, Class A3B
5.447% due 05/15/2045 (b)		845,000		788,388
JP Morgan Mortgage Trust, Series 2006-A7, Class 2A5
5.8013% due 01/25/2037 (b)		723,171		550,476
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A4B
4.996% due 08/15/2042 (b)		485,000		449,563
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class B
5.129% due 10/15/2042 (b)		145,000		107,330
JPMorgan Mortgage Trust, Series 2005-S2, Class 2A16
6.50% due 09/25/2035		204,370		185,657
JPMorgan Mortgage Trust, Series 2005-S3, Class 2A2
5.50% due 01/25/2021		420,234		390,161
LB-UBS Commercial Mortgage Trust, Series 2005-C2, Class E
5.4561% due 04/15/2030 (b)		740,000		506,559
LB-UBS Commercial Mortgage Trust, Series 2002-C1,Class A4
6.462% due 03/15/2031		29,619		30,430
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class XCL
0.2566% IO due 02/15/2040 (b)(h)		730,909		11,995
LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class G
5.11% due 07/15/2040 (b)(h)		25,472		16,101
LB-UBS Commercial Mortgage Trust, Series 2005-C5, Class A2
4.885% due 09/15/2030		58,053		57,767
LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4
6.0803% due 06/15/2038 (b)		575,000		545,826
Lehman XS Trust, Series 2007-10H, Class 2A2
7.50% due 07/25/2037		2,046,952		1,750,667

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Mastr Adjustable Rate Mortgages Trust, Series 2004-13, Class 2A1
3.8863% due 04/21/2034 (b)	$	1,442,650	$	1,339,837
Mastr Adjustable Rate Mortgages Trust, Series 2004-8, Class 5A1
4.5962% due 08/25/2034 (b)		754,124		649,133
Mastr Adjustable Rate Mortgages Trust, Series 2005-2, Class 2A1
5.7576% due 03/25/2035 (b)		1,362,338		1,060,461
Mastr Adjustable Rate Mortgages Trust, Series 2006-2, Class 4A1
4.9812% due 02/25/2036 (b)		621,969		528,890
Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4
5.69% due 02/12/2051		1,080,000		973,866
Merrill Lynch Mortgage Trust, Series 2008-C1, Class X
0.564% IO due 02/14/2051 (h)		14,260,414		427,812
Merrill Lynch Mortgage Trust, Series 2004-KEY2, Class A4
4.864% due 08/12/2039 (b)		31,988		29,963
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class XC
0.0792% IO due 08/12/2020 (h)		5,488,866		26,693
Merrill Lynch Mortgage Trust, Series 2005-CKI1, Class A6
5.416% due 11/12/2037 (b)		435,000		411,987
Merrill Lynch Mortgage Trust, Series 2006-C1, Class AM
5.8412% due 05/12/2039 (b)		1,000,000		880,792
Merrill Lynch Mortgage Trust, Series 2006-C2, Class X
0.559% IO due 08/12/2026		13,878,508		278,879
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4
6.1044% due 06/12/2046 (b)		785,000		745,508
MLCC Mortgage Investors, Inc., Series 2007-3, Class M1
5.9426% due 09/25/2037 (b)		289,966		200,180
MLCC Mortgage Investors, Inc., Series 2007-3, Class M2
5.9426% due 09/25/2037 (b)		109,987		84,584
MLCC Mortgage Investors, Inc., Series 2007-3, Class M3
5.9426% due 09/25/2037 (b)		69,992		46,901
Morgan Stanley Capital I, Series 2006-IQ12, Class E
5.538% due 12/15/2043 (b)		390,000		241,561
Morgan Stanley Capital I, Series 2004-T13, Class A2
3.94% due 09/13/2045		18,259		17,993
Morgan Stanley Capital I, Series 2005-HQ7, Class A2
5.3785% due 11/14/2042 (b)		415,000		406,606
Morgan Stanley Capital I, Series 2005-HQ7, Class A4
5.3785% due 11/14/2042 (b)		415,000		396,778
Morgan Stanley Capital I, Series 2005-IQ10, Class A4A
5.23% due 09/15/2042 (b)		555,000		524,131
Morgan Stanley Capital I, Series 2005-IQ9, Class X1
0.207% IO due 07/15/2056 (b)(h)		672,817		15,329

 

The accompanying notes are an integral part of the financial statements.

81

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Morgan Stanley Capital I, Series 2005-T17, Class X1
0.1851% IO due 12/31/2041 (b)(h)	$	1,454,190	$	17,014
Morgan Stanley Capital I, Series 2007-SRR3, Class A
2.7706% due 12/20/2049 (b)(h)		1,000,000		300,000
Morgan Stanley Capital I, Series 2007-SRR3, Class B
2.8706% due 12/20/2049 (b)(h)		1,000,000		250,000
Provident Funding Mortgage Loan Trust, Series 2005-1, Class B1
4.8293% due 05/25/2035 (b)		312,631		236,493
Residential Accredit Loans, Inc., Series 2005-QA12, Class NB5
5.9492% due 12/25/2035 (b)		473,045		358,682
Residential Asset Securitization Trust, Series 2006-A7CB, Class 2A1
6.50% due 07/25/2036		555,957		338,266
Salomon Brothers Mortgage Securities VII, Series 2000-C3, Class A2
6.592% due 12/18/2033		11,917		12,141
Salomon Brothers Mortgage Securities VII, Series 2001-C1, Class A3
6.428% due 12/18/2035		23,236		23,657
SBA CMBS Trust, Series 2006-1A, Class H
7.389% due 11/15/2036 (h)		680,000		651,259
SBA CMBS Trust, Series 2006-1A, Class J
7.825% due 11/15/2036 (h)		135,000		123,573
SBA CMBS Trust, Series 2005-1A, Class C
5.731% due 11/15/2035 (h)		397,000		385,040
SBA CMBS Trust, Series 2005-1A, Class D
6.219% due 11/15/2035 (h)		100,000		94,350
SBA CMBS Trust, Series 2005-1A, Class E
6.706% due 11/15/2035 (h)		110,000		104,322
Sequoia Mortgage Trust, Series 2005-3, Class A1
2.6706% due 05/20/2035 (b)		5,467		4,473
Structured Asset Securities Corp., Series 2003-6A, Class B1
5.5445% due 03/25/2033 (b)		562,098		420,715
Suntrust Adjustable Rate Mortgage Loan Trust, Series 2007-2, Class 4A1
5.7375% due 04/25/2037 (b)		1,601,438		1,510,079
Timberstar Trust, Series 2006-1A, Class A
5.668% due 10/15/2036 (h)		900,000		887,027
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class E
5.5301% due 12/15/2044 (b)		915,000		605,967
Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class XC
0.102% IO due 03/15/2042 (h)		950,971		6,501
Wachovia Bank Commercial Mortgage Trust, Series 2005-C19, Class AJ
4.793% due 05/15/2044		37,517		30,522
WAMU Commercial Mortgage Securities Trust, Series 2007-SL3, Class A
6.1144% due 03/23/2045 (h)		563,556		511,836
WAMU Commercial Mortgage Securities Trust, Series 2006-SL1, Class A
5.42% due 11/23/2043 (h)		870,221		761,226

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
WAMU Mortgage Pass Through Certificates, Series 2005-AR19, Class A1B3
2.8219% due 12/25/2045 (b)	$	233,603	$	121,831
WAMU Mortgage Pass Through Certificates, Series 2006-AR4, Class 1A1B
4.019% due 05/25/2046 (b)		584,084		309,080
WAMU Mortgage Pass Through Certificates, Series 2005-AR13, Class B1
3.0719% due 10/25/2045 (b)		850,047		423,307
WAMU Mortgage Pass Through Certificates, Series 2005-AR6, Class B1
3.0719% due 04/25/2045 (b)		959,908		479,967
WAMU Mortgage Pass Through Certificates, Series 2007-OA5, Class 1XPP
0.6893% IO due 06/25/2017		29,701,387		343,422
WAMU Mortgage Pass Through Certificates, Series 2007-OA6, Class 1XPP
0.8695% IO due 07/25/2047		16,681,535		187,667
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-AR19, Class B1
3.1719% due 12/25/2045 (b)		509,217		158,931
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2007-1, Class B1
6.1991% due 02/25/2037 (b)		354,325		47,614
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-6, Class 1CB
6.50% due 08/25/2035		224,891		175,064
Washington Mutual Mortgage Pass Through Certificates, Series 2007-OA4, Class XPPP
0.8727% IO due 04/25/2047		13,331,135		166,639
Washington Mutual Mortgage Pass-Through, Series 2005-1, Class 6A1
6.50% due 03/25/2035		15,213		12,603
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR15, Class A3
5.6523% due 10/25/2036 (b)		780,527		523,097
Wells Fargo Mortgage Backed Securities Trust, Series 2004-7, Class 2A2
5.00% due 07/25/2019		406,671		382,779
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $76,336,957)			$	65,358,430
ASSET BACKED SECURITIES - 4.86%
American Express Issuance Trust, Series 2008-1, Class A
3.4169% due 12/15/2010 (b)		2,235,000		2,229,847
Bank of America Credit Card Trust, Series 2008-A3, Class A3
3.2169% due 08/15/2011 (b)		1,588,000		1,588,095
CNH Equipment Trust, Series 2008-B, Class A2B
3.4669% due 04/15/2011 (b)		1,600,000		1,594,053
Lehman XS Trust, Series 2005-5N, Class 3A2
2.8319% due 11/25/2035 (b)		690,270		300,001
Lehman XS Trust, Series 2006-2N, Class 1A2
2.8119% due 02/25/2046 (b)		1,505,516		617,703
Alesco Preferred Funding, Ltd., Series 12A, Class B
3.0712% due 07/15/2037 (b)(h)		430,000		258,000

 

The accompanying notes are an integral part of the financial statements.

82

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

		Shares or Principal Amount		Value
Active Bond Fund (continued)
ASSET BACKED SECURITIES (continued)
Alesco Preferred Funding, Ltd., Series 14A, Class B
3.4513% due 09/23/2037 (b)(h)		$	930,000	$	418,500
Alesco Preferred Funding, Ltd., Series 15A, Class B1
3.4813% due 12/23/2037 (b)(h)			220,000		88,000
Amresco Residential Securities Mortgage Loan Trust, Series 1998-1, Class A6
6.51% due 08/25/2027			780		768
Ansonia CDO, Ltd.
5.812% due 07/28/2046 (h)			1,150,000		391,000
Anthracite, Ltd., Series 2002-2A, Class B
5.488% due 12/24/2037 (b)(h)			600,000		480,000
Anthracite, Ltd., Series 2002-CIBA, Class A
2.9219% due 05/24/2017 (b)(h)			881,939		740,829
Arbor Realty Mortgage Securities, Series 2006-1A, Class C
3.395% due 12/26/2041 (b)(h)			370,000		167,910
Arbor Realty Mortgage Securities, Series 2006-1A, Class F
3.845% due 12/26/2041 (b)(h)			615,000		276,750
Argent Securities, Inc., Series 2004-W1, Class M3	��
3.9219% due 02/25/2034 (b)			10,645		5,751
Capital Trust Re CDO, Ltd., Series 2005-1A, Class B
2.9406% due 03/20/2050 (b)(h)			400,000		288,000
Cedarwoods Credit CDO, Ltd., Series 2007-2A, Class B
2.8519% due 02/25/2052 (b)(h)			1,000,000		458,700
Chase Credit Card Master Trust, Series 2003-6, Class A
2.5769% due 02/15/2011 (b)			1,200,000		1,199,531
Chase Issuance Trust, Series 2008-A1, Class A1
2.9169% due 01/15/2012 (b)			800,000		793,246
Credit-Based Asset Servicing and Securitization, Series 2005-CB8, Class AF2
5.303% due 12/25/2035			679,893		646,371
Credit-Based Asset Servicing and Securitization, Series 2006-CB2, Class AF2
5.501% due 12/25/2036 (b)			1,111,777		1,025,817
Credit-Based Asset Servicing and Securitization, Series 2006-MH1, Class B1
6.25% due 09/25/2036 (h)			460,000		366,712
Crest, Ltd., Series 2000-1A, Class C
7.75% due 08/31/2036 (h)			860,000		835,430
Crest, Ltd., Series 2002-IGA, Class A
3.245% due 07/28/2017 (b)(h)			1,489,001		1,416,177
Crest, Ltd., Series 2003-1A, Class B1
3.5956% due 05/28/2038 (b)(h)			600,000		515,850
DB Master Finance LLC, Series 2006-1, Class-A2
5.779% due 06/20/2031 (h)			3,045,000		2,664,771
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (h)			125,000		95,391
Dillon Read CMBS CDO, Ltd.,Series 2006-1A, Class A3
3.3731% due 12/05/2046 (h)			975,000		312,000
Dominos Pizza Master Issuer LLC, Series 2007-1, Class M1
7.629% due 04/25/2037 (h)			535,000		334,375
Equity One ABS, Inc., Series 2004-2, Class AV2
2.7219% due 07/25/2034 (b)			647		534

 

	Shares or Principal Amount		Value
Active Bond Fund (continued)
ASSET BACKED SECURITIES (continued)
GSAA Home Equity Trust, Series 2006-10, Class AF3
5.9846% due 06/25/2036 (b)	$	1,000,000	$	609,688
Highland Park CDO, Ltd., Series 2006-1A, Class A2
3.2106% due 11/25/2051 (b)(h)		1,230,000		764,076
JER CDO, Series 2006-2A, Class AFL
2.8019% due 03/25/2045 (b)(h)		700,000		280,000
LNR CDO, Ltd., Series 2006-1A, Class BFL
3.01% due 05/28/2043 (b)(h)		700,000		84,105
Newcastle CDO, Ltd., Series 2005-7A, Class 2FL
2.9719% due 12/24/2050 (h)		570,000		270,579
North Street Referenced Linked Notes, Series 2000-1A, Class C
4.5462% due 04/28/2011 (b)(h)		500,000		295,000
N-Star Real Estate CDO, Ltd.
2.8219% due 07/27/2040 (b)(h)		700,000		539,000
N-Star Real Estate CDO, Ltd., Series 2006-7A, Class B
2.8519% due 06/22/2051 (b)(h)		900,000		413,100
N-Star Real Estate CDO, Ltd., Series 2006-8A, Class E
3.2137% due 02/01/2041 (b)(h)		475,000		227,211
N-Star Real Estate CDO, Ltd., Series 2006-8A, Class G
3.4137% due 02/01/2041 (b)(h)		475,000		200,892
Ownit Mortgage Loan, Series 2006-1, Class AF2
5.29% due 12/25/2036		1,050,000		926,838
Ownit Mortgage Loan, Series 2006-2, Class A2B
5.6329% due 02/25/2037		1,000,000		936,048
Popular ABS Mortgage Pass-Through Trust, Series 2005-4, Class AF3
4.982% due 09/25/2035 (b)		33,706		33,502
Popular ABS Mortgage Pass-Through Trust, Series 2005-6, Class A2
5.35% due 01/25/2036 (b)		631,492		625,909
Prima Capital Ltd., Series 2006-CR1A, Class A1
5.42% due 12/25/2048		1,304,108		1,121,533
RAIT Preferred Funding, Ltd., Series 2007-2A, Class B
3.2719% due 06/25/2045 (b)(h)		685,000		350,686
Renaissance Home Equity Loan Trust, Series 2005-2, Class AF3
4.499% due 08/25/2035		117,284		116,460
Renaissance Home Equity Loan Trust, Series 2005-2, Class AF4
4.934% due 08/25/2035		335,000		312,349
Residential Accredit Loans, Inc., Series 2004-QS16, Class 1A1
5.50% due 12/25/2034		16,879		14,136
Wells Fargo Home Equity Trust, Series 2004-2, Class AI5
4.89% due 11/25/2028 (b)		49,000		45,161
Lehman XS Trust, Series 2005-7N, Class 1A1B
2.7719% due 12/25/2035 (b)		504,236		226,423
TOTAL ASSET BACKED SECURITIES (Cost $37,645,969)			$	28,502,808

 

The accompanying notes are an integral part of the financial statements.

83

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Active Bond Fund (continued)
SUPRANATIONAL OBLIGATIONS - 0.04%
Honduras - 0.00%
Central American Bank for Economic Integration
6.75% due 04/15/2013 (h)	$	12,000	$	12,941
Venezuela - 0.04%
Corporacion Andina de Fomento
5.20% due 05/21/2013		214,000		211,592
Corporacion Andina de Fomento, Series EXCH
6.875% due 03/15/2012		20,000		20,987
				232,579
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $249,280)			$	245,520
PREFERRED STOCKS - 0.21%
Financial Services - 0.08%
Merrill Lynch & Company, Inc., Series MER, 8.625% *		20,775		444,585
Food & Beverages - 0.08%
Ocean Spray Cranberries, Inc., 6.25% *		5,034		462,971
Telephone - 0.05%
Telephone & Data Systems, Inc., 7.60% *		16,000		322,880
TOTAL PREFERRED STOCKS (Cost $1,341,891)			$	1,230,436
REPURCHASE AGREEMENTS - 2.87%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $16,835,180 on 09/02/2008, collateralized by $11,115,000 Federal Home Loan Bank, 3.00% due 06/30/2009 (valued at $11,170,575, including interest) and $5,905,000 Federal Home Loan Mortgage Corp., 4.25% due 07/15/2009 (valued at $6,000,956, including interest)	$	16,832,000	$	16,832,000
TOTAL REPURCHASE AGREEMENTS (Cost $16,832,000)			$	16,832,000
SHORT TERM INVESTMENTS - 6.05%
Federal Home Loan bank Discount Notes zero coupon due 09/02/2008 to 09/16/2008	$	35,537,000	$	35,519,687
TOTAL SHORT TERM INVESTMENTS (Cost $35,519,687)			$	35,519,687
Total Investments (Active Bond Fund) (Cost $643,184,576) - 103.61%			$	608,037,119
Liabilities in Excess of Other Assets - (3.61)%				(21,174,453	)
TOTAL NET ASSETS - 100.00%			$	586,862,666

 

	Shares or Principal Amount		Value
All Cap Core Fund
COMMON STOCKS - 90.57%
Aerospace - 1.17%
Boeing Company		32,700	$	2,143,812
General Dynamics Corp.		66,700		6,156,410
				8,300,222
Air Travel - 0.91%
AMR Corp. *		394,900		4,079,317
Southwest Airlines Company		157,500		2,398,725
				6,478,042
Apparel & Textiles - 0.01%
True Religion Apparel, Inc. *		2,600		70,590
Auto Parts - 0.73%
Autoliv, Inc.		122,400		4,698,936
WABCO Holdings, Inc.		10,900		477,420
				5,176,356
Banking - 1.66%
Astoria Financial Corp.		81,600		1,782,960
Northern Trust Corp.		125,000		10,048,750
				11,831,710
Biotechnology - 0.40%
Alnylam Pharmaceuticals, Inc. *		16,900		501,085
Amgen, Inc. *		16,100		1,011,885
Genomic Health, Inc. *		3,500		78,225
Myriad Genetics, Inc. *		18,700		1,275,340
				2,866,535
Broadcasting - 0.60%
Liberty Global, Inc., Class A *		121,500		4,274,370
Building Materials & Construction - 0.80%
Armstrong World Industries, Inc. *		23,600		880,516
EMCOR Group, Inc. *		9,400		320,258
Foster Wheeler, Ltd. *		78,900		3,920,541
Perini Corp. *		22,500		600,975
				5,722,290
Business Services - 1.06%
Brinks Company		75,100		5,240,478
Computer Sciences Corp. *		46,200		2,172,786
Global Sources, Ltd. * (a)		11,000		117,370
				7,530,634
Cable & Television - 2.68%
Comcast Corp., Class A		28,500		603,630
DIRECTV Group, Inc. *		372,900		10,519,509
DISH Network Corp. *		280,600		7,915,726
				19,038,865
Chemicals - 1.36%
CF Industries Holdings, Inc.		40,200		6,126,480
Terra Industries, Inc.		70,600		3,547,650
				9,674,130
Computers & Business Equipment - 6.35%
Apple, Inc. *		10,900		1,847,877
Hewlett-Packard Company		303,700		14,249,604
International Business Machines Corp.		137,300		16,713,529
Lexmark International, Inc. *		192,700		6,931,419

 

The accompanying notes are an integral part of the financial statements.

84

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
All Cap Core Fund (continued)
COMMON STOCKS (continued)
Computers & Business Equipment (continued)
Western Digital Corp. *		197,500	$	5,383,850
				45,126,279
Cosmetics & Toiletries - 1.60%
Colgate-Palmolive Company		106,000		8,059,180
Procter & Gamble Company		47,800		3,335,006
				11,394,186
Crude Petroleum & Natural Gas - 5.02%
Apache Corp.		67,800		7,754,964
Cimarex Energy Company		136,400		7,575,656
Noble Energy, Inc.		56,900		4,081,437
Occidental Petroleum Corp.		127,600		10,126,336
Swift Energy Company *		23,300		1,088,343
W&T Offshore, Inc.		142,800		5,020,848
				35,647,584
Domestic Oil - 0.88%
Clayton Williams Energy, Inc. *		1,200		97,128
Encore Aquisition Company *		17,000		876,520
Mariner Energy, Inc. *		182,700		5,314,743
				6,288,391
Drugs & Health Care - 0.24%
CV Therapeutics, Inc. *		48,800		560,712
Quidel Corp. *		47,600		930,580
Vivus, Inc. *		23,900		201,955
				1,693,247
Electrical Equipment - 0.24%
Emerson Electric Company		7,100		332,280
GrafTech International, Ltd. *		33,000		670,560
Wesco International, Inc. *		19,100		734,204
				1,737,044
Electrical Utilities - 1.25%
Constellation Energy Group, Inc.		16,100		1,074,031
Edison International		121,000		5,556,320
FirstEnergy Corp.		30,900		2,244,576
				8,874,927
Electronics - 0.95%
Agilent Technologies, Inc. *		6,000		208,560
Harman International Industries, Inc.		22,500		765,675
Jabil Circuit, Inc.		323,300		5,450,838
Multi-Fineline Electronix, Inc. *		17,700		301,962
				6,727,035
Energy - 0.31%
Energen Corp.		20,600		1,150,304
Rosetta Resources, Inc. *		11,700		272,025
Sempra Energy		13,400		776,128
				2,198,457
Financial Services - 6.93%
Bank of New York Mellon Corp.		154,500		5,347,245
BlackRock, Inc.		10,200		2,215,950
Broadridge Financial Solutions, Inc.		40,200		802,794
Charles Schwab Corp.		381,300		9,147,387
Goldman Sachs Group, Inc.		61,900		10,149,743

 

	Shares or Principal Amount		Value
All Cap Core Fund (continued)
COMMON STOCKS (continued)
Financial Services (continued)
JP Morgan Chase & Company		28,800	$	1,108,512
PNC Financial Services Group, Inc.		45,500		3,273,725
State Street Corp.		137,700		9,318,159
Waddell & Reed Financial, Inc., Class A		20,000		644,000
Wells Fargo & Company		239,800		7,258,746
				49,266,261
Food & Beverages - 2.72%
General Mills, Inc.		25,000		1,654,500
H.J. Heinz Company		103,700		5,218,184
Pepsi Bottling Group, Inc.		92,500		2,736,150
Sysco Corp.		304,400		9,689,052
				19,297,886
Gas & Pipeline Utilities - 1.96%
Transocean, Inc. *		30,500		3,879,600
Williams Companies, Inc.		325,300		10,048,517
				13,928,117
Healthcare Products - 3.95%
Baxter International, Inc.		89,500		6,064,520
Cypress Biosciences, Inc. *		100,500		689,430
Herbalife, Ltd.		134,200		6,320,820
Johnson & Johnson		6,000		422,580
Kinetic Concepts, Inc. *		122,800		4,317,648
St. Jude Medical, Inc. *		208,000		9,532,640
The Medicines Company *		30,700		747,852
				28,095,490
Healthcare Services - 1.13%
Alliance Imaging, Inc. *		12,400		143,964
Express Scripts, Inc. *		107,600		7,898,916
				8,042,880
Holdings Companies/Conglomerates - 0.63%
General Electric Company		159,300		4,476,330
Homebuilders - 0.96%
NVR, Inc. *		1,500		896,595
Walter Industries, Inc.		63,200		5,928,160
				6,824,755
Hotels & Restaurants - 1.98%
CEC Entertainment, Inc. *		29,200		1,000,392
McDonald’s Corp.		66,300		4,113,915
Yum! Brands, Inc.		250,100		8,923,568
				14,037,875
Industrial Machinery - 1.96%
AGCO Corp. *		17,800		1,097,014
Caterpillar, Inc.		22,800		1,612,644
Flowserve Corp.		57,800		7,636,536
Gardner Denver, Inc. *		63,900		2,884,446
Parker-Hannifin Corp.		11,100		711,177
				13,941,817
Industrials - 0.22%
Shaw Group, Inc. *		31,200		1,545,648
Insurance - 3.38%
Aetna, Inc.		209,400		9,033,516
Allied World Assurance Holdings, Ltd.		37,300		1,440,526

 

The accompanying notes are an integral part of the financial statements.

85

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
All Cap Core Fund (continued)
COMMON STOCKS (continued)
Insurance (continued)
Assurant, Inc.		62,600	$	3,657,718
Hartford Financial Services Group, Inc.		16,300		1,028,204
MetLife, Inc.		59,000		3,197,800
Progressive Corp.		196,700		3,633,049
Prudential Financial, Inc.		28,000		2,063,880
				24,054,693
International Oil - 6.19%
Chevron Corp.		197,200		17,022,304
ConocoPhillips		155,400		12,822,054
Exxon Mobil Corp.		149,500		11,961,495
Murphy Oil Corp.		27,400		2,151,722
				43,957,575
Internet Content - 1.05%
Google, Inc., Class A *		13,900		6,439,731
Yahoo!, Inc. *		51,200		992,256
				7,431,987
Internet Retail - 0.29%
eBay, Inc. *		83,300		2,076,669
Internet Software - 0.14%
Symantec Corp. *		43,600		972,716
Leisure Time - 0.42%
Carnival Corp.		79,800		2,957,388
Manufacturing - 1.57%
Honeywell International, Inc.		219,300		11,002,281
Insteel Industries, Inc.		7,200		123,120
				11,125,401
Medical-Hospitals - 0.18%
Centene Corp. *		29,200		659,336
Health Management Associates, Inc., Class A *		109,100		633,871
				1,293,207
Metal & Metal Products - 0.74%
Reliance Steel & Aluminum Company		91,800		5,233,518
Mining - 0.74%
Freeport-McMoRan Copper & Gold, Inc., Class B		58,800		5,252,016
Paper - 0.02%
Xerium Technologies, Inc.		15,100		116,421
Pharmaceuticals - 6.12%
Cubist Pharmaceuticals, Inc. *		47,100		1,037,613
Eli Lilly & Company		246,700		11,508,555
Enzon Pharmaceuticals, Inc. * (a)		40,100		362,905
Gilead Sciences, Inc. *		154,100		8,117,988
Medicis Pharmaceutical Corp., Class A		42,500		880,175
Merck & Company, Inc.		122,700		4,376,709
OSI Pharmaceuticals, Inc. *		27,600		1,393,800
Pfizer, Inc.		824,000		15,746,640
POZEN, Inc. *		9,100		104,832
				43,529,217
Real Estate - 1.29%
Apartment Investment & Management Company, Class A, REIT		5,411		191,752
Equity Residential, REIT		30,100		1,270,220

 

	Shares or Principal Amount		Value
All Cap Core Fund (continued)
COMMON STOCKS (continued)
Real Estate (continued)
Health Care, Inc., REIT		13,500	$	700,245
Hospitality Properties Trust, REIT		16,200		367,416
Liberty Property Trust, REIT		15,500		585,280
ProLogis, REIT		24,300		1,046,358
Public Storage, Inc., REIT		2,600		229,632
Regency Centers Corp., REIT		12,800		793,216
Simon Property Group, Inc., REIT		25,600		2,428,928
Vornado Realty Trust, REIT		15,600		1,551,576
				9,164,623
Retail Grocery - 0.98%
The Kroger Company		251,900		6,957,478
Retail Trade - 3.91%
Advance Auto Parts, Inc.		46,700		2,009,968
Best Buy Company, Inc.		157,800		7,064,706
Children’s Place Retail Stores, Inc. *		3,900		163,605
New York & Company, Inc. *		2,600		30,680
Systemax, Inc. * (a)		700		10,794
The Buckle, Inc.		9,400		488,142
United Rentals, Inc. *		315,700		5,111,183
Wal-Mart Stores, Inc.		218,500		12,906,795
				27,785,873
Semiconductors - 1.09%
Analog Devices, Inc.		8,000		223,680
QLogic Corp. *		163,200		3,048,576
Texas Instruments, Inc.		161,900		3,968,169
Volterra Semiconductor Corp. *		33,300		523,476
				7,763,901
Software - 2.18%
Activision Blizzard, Inc. *		70,700		2,320,374
Microsoft Corp.		482,400		13,164,696
				15,485,070
Steel - 1.65%
Schnitzer Steel Industries, Inc.		6,900		472,029
Steel Dynamics, Inc.		215,900		5,360,797
United States Steel Corp.		44,400		5,908,308
				11,741,134
Telecommunications Equipment & Services - 0.01%
Global Crossing, Ltd. *		3,100		56,606
Telephone - 4.51%
AT&T, Inc.		343,100		10,975,769
Atlantic Tele-Network, Inc.		2,500		83,675
Embarq Corp.		145,800		6,875,928
Verizon Communications, Inc.		401,400		14,097,168
				32,032,540
Tobacco - 0.77%
Altria Group, Inc.		133,100		2,799,093
Lorillard, Inc.		14,200		1,025,808
Philip Morris International, Inc.		31,000		1,664,700
				5,489,601
Transportation - 1.53%
Frontline, Ltd. (a)		110,400		6,669,264

 

The accompanying notes are an integral part of the financial statements.

86

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
All Cap Core Fund (continued)
COMMON STOCKS (continued)
Transportation (continued)
Kirby Corp. *		92,400	$	4,230,996
	��			10,900,260
Trucking & Freight - 1.15%
Ryder Systems, Inc.		126,900		8,187,588
TOTAL COMMON STOCKS (Cost $657,857,478)			$	643,673,435
SHORT TERM INVESTMENTS - 1.69%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	4,599,396	$	4,599,396
U.S. Treasury Bills zero coupon due 10/16/2008 ****		7,410,000		7,397,496
TOTAL SHORT TERM INVESTMENTS (Cost $11,996,892)			$	11,996,892
REPURCHASE AGREEMENTS - 8.36%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $59,432,224 on 09/02/2008, collateralized by $165,000 Federal Farm Credit Bank, 5.375% due 03/11/2019, $39,415,000 Federal Home Loan Bank, 5.00% to 5.75% due 10/16/2009 to 04/03/2028, $2,670,000 Federal Home Loan Mortgage Corp., 4.15% to 4.25% due 01/29/2013 to 02/13/2013 and $17,110,000 Federal National Mortgage Association, 3.20% to 7.125% due 02/15/2010 to 01/15/2030 (valued at $60,609,425, including interest)	$	59,421,000	$	59,421,000
TOTAL REPURCHASE AGREEMENTS (Cost $59,421,000)			$	59,421,000
Total Investments (All Cap Core Fund) (Cost $729,275,370) - 100.62%			$	715,091,327
Liabilities in Excess of Other Assets - (0.62)%				(4,436,368	)
TOTAL NET ASSETS - 100.00%			$	710,654,959

 

	Shares or Principal Amount		Value
All Cap Growth Fund
COMMON STOCKS - 96.11%
Aerospace - 8.46%
General Dynamics Corp.		25,946	$	2,394,816
Lockheed Martin Corp.		6,619		770,717
Raytheon Company		36,064		2,163,479
Rockwell Collins, Inc.		16,556		870,680
Spirit Aerosystems Holdings, Inc., Class A *		85,554		1,950,631
United Technologies Corp.		33,754		2,213,925
				10,364,248
Agriculture - 4.14%
Monsanto Company		23,804		2,719,607

 

	Shares or Principal Amount		Value
All Cap Growth Fund (continued)
COMMON STOCKS (continued)
Agriculture (continued)
The Mosaic Company		22,007	$	2,349,027
				5,068,634
Apparel & Textiles - 0.37%
NIKE, Inc., Class B		7,415		449,423
Auto Parts - 0.40%
BorgWarner, Inc.		11,864		490,576
Building Materials & Construction - 1.74%
Chicago Bridge & Iron Company NV		11,867		379,981
Foster Wheeler, Ltd. *		35,294		1,753,759
				2,133,740
Business Services - 3.99%
Accenture, Ltd., Class A		61,155		2,529,371
Fluor Corp.		21,293		1,706,208
Jacobs Engineering Group, Inc. *		8,823		651,314
				4,886,893
Cellular Communications - 0.65%
China Mobile, Ltd.		69,653		790,700
Chemicals - 1.31%
Potash Corp. of Saskatchewan, Inc.		9,218		1,600,245
Coal - 2.53%
CONSOL Energy, Inc.		25,181		1,705,006
Peabody Energy Corp.		22,175		1,395,916
				3,100,922
Commercial Services - 0.64%
Morningstar, Inc. *		12,049		786,920
Computers & Business Equipment - 2.98%
Apple, Inc. *		3,815		646,757
Cisco Systems, Inc. *		68,489		1,647,160
Cognizant Technology Solutions Corp., Class A *		19,527		572,532
Research In Motion, Ltd. *		3,580		435,328
Seagate Technology		23,254		346,717
				3,648,494
Construction & Mining Equipment - 3.09%
Joy Global, Inc.		9,239		656,339
National Oilwell Varco, Inc. *		42,502		3,133,672
				3,790,011
Cosmetics & Toiletries - 6.63%
Chattem, Inc. *		2,974		208,537
Colgate-Palmolive Company		49,501		3,763,561
Procter & Gamble Company		59,518		4,152,571
				8,124,669
Crude Petroleum & Natural Gas - 3.50%
Marathon Oil Corp.		25,682		1,157,488
Occidental Petroleum Corp.		39,392		3,126,149
				4,283,637
Drugs & Health Care - 0.81%
Shire, Ltd.		56,514		995,638
Electrical Equipment - 0.89%
Emerson Electric Company		14,187		663,951

 

The accompanying notes are an integral part of the financial statements.

87

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
All Cap Growth Fund (continued)
COMMON STOCKS (continued)
Electrical Equipment (continued)
Fanuc, Ltd.		5,800	$	431,511
				1,095,462
Electronics - 0.68%
Garmin, Ltd. *		12,017		417,711
Trimble Navigation, Ltd. *		12,168		411,887
				829,598
Energy - 1.62%
McDermott International, Inc. *		57,255		1,988,466
Food & Beverages - 7.64%
Hansen Natural Corp. *		30,479		837,563
Kellogg Company		42,928		2,337,001
PepsiCo, Inc.		50,973		3,490,631
The Coca-Cola Company		51,661		2,689,988
				9,355,183
Gas & Pipeline Utilities - 1.67%
Transocean, Inc. *		16,125		2,051,100
Healthcare Products - 7.23%
Baxter International, Inc.		38,857		2,632,950
Becton, Dickinson & Company		23,217		2,028,702
Johnson & Johnson		37,335		2,629,504
St. Jude Medical, Inc. *		34,092		1,562,436
				8,853,592
Healthcare Services - 1.66%
Express Scripts, Inc. *		17,075		1,253,476
Quest Diagnostics, Inc.		14,420		779,401
				2,032,877
Industrial Machinery - 1.74%
Cameron International Corp. *		31,970		1,489,482
Komatsu, Ltd.		30,730		643,164
				2,132,646
Industrials - 2.22%
ABB, Ltd. *		74,653		1,831,067
Mitsui O.S.K. Lines, Ltd.		74,450		882,387
				2,713,454
Insurance - 3.12%
ACE, Ltd. *		29,906		1,573,355
Assurant, Inc.		10,586		618,540
Chubb Corp.		34,024		1,633,492
				3,825,387
International Oil - 2.49%
Exxon Mobil Corp.		38,154		3,052,701
Internet Content - 0.44%
Google, Inc., Class A *		1,176		544,829
Manufacturing - 1.19%
Honeywell International, Inc.		28,943		1,452,070
Metal & Metal Products - 2.99%
Companhia Vale Do Rio Doce, ADR *		24,110		640,121
Precision Castparts Corp.		26,104		2,695,499
Titanium Metals Corp.		22,659		326,516
				3,662,136

 

	Shares or Principal Amount		Value
All Cap Growth Fund (continued)
COMMON STOCKS (continued)
Mining - 3.63%
BHP Billiton, Ltd.		31,767	$	1,115,713
Rio Tinto PLC		18,561		1,761,973
Xstrata PLC		28,085		1,565,828
				4,443,514
Petroleum Services - 3.98%
Baker Hughes, Inc.		22,055		1,764,620
Schlumberger, Ltd.		19,953		1,879,972
Valero Energy Corp.		35,504		1,234,119
				4,878,711
Pharmaceuticals - 1.31%
Gilead Sciences, Inc. *		30,348		1,598,733
Retail Grocery - 1.22%
The Kroger Company		54,198		1,496,949
Software - 5.14%
Adobe Systems, Inc. *		42,029		1,800,102
Autodesk, Inc. *		26,771		951,173
Microsoft Corp.		129,713		3,539,868
				6,291,143
Telecommunications Equipment & Services - 2.60%
Amdocs, Ltd. *		16,084		485,576
KDDI Corp.		221		1,286,928
Nokia Oyj, SADR		56,246		1,415,712
				3,188,216
Tobacco - 0.72%
UST, Inc.		16,516		885,092
Transportation - 0.69%
Nippon Yusen Kabushiki Kaisha		106,550		850,296
TOTAL COMMON STOCKS (Cost $112,944,887)			$	117,736,905
REPURCHASE AGREEMENTS - 3.92%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $4,803,907 on 09/02/2008, collateralized by $4,965,000 Federal Home Loan Bank, 5.70% due 04/03/2028 (valued at $4,902,938, including interest)	$	4,803,000	$	4,803,000
TOTAL REPURCHASE AGREEMENTS (Cost $4,803,000)			$	4,803,000
Total Investments (All Cap Growth Fund) (Cost $117,747,887) - 100.03%			$	122,539,905
Liabilities in Excess of Other Assets - (0.03)%				(34,761	)
TOTAL NET ASSETS - 100.00%			$	122,505,144

 

The accompanying notes are an integral part of the financial statements.

88

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
All Cap Value Fund
COMMON STOCKS - 98.16%
Aerospace - 4.93%
Alliant Techsystems, Inc. *		8,800	$	926,024
Curtiss-Wright Corp.		9,600		517,152
General Dynamics Corp.		17,700		1,633,710
Moog, Inc., Class A *		4,387		207,944
Rockwell Collins, Inc.		5,500		289,245
United Technologies Corp.		16,400		1,075,676
				4,649,751
Agriculture - 2.15%
Archer-Daniels-Midland Company		79,700		2,029,162
Air Travel - 0.84%
Southwest Airlines Company		52,300		796,529
Apparel & Textiles - 0.44%
VF Corp.		5,200		412,100
Auto Parts - 2.59%
Autoliv, Inc.		35,300		1,355,167
Gentex Corp.		33,800		538,434
Tenneco, Inc. *		37,800		552,258
				2,445,859
Automobiles - 1.51%
Honda Motor Company, Ltd., ADR		22,200		722,832
PACCAR, Inc.		16,300		701,878
				1,424,710
Banking - 3.12%
Commerce Bancshares, Inc.		17,690		796,050
Cullen Frost Bankers, Inc.		38,535		2,145,629
				2,941,679
Biotechnology - 3.63%
Amgen, Inc. *		36,400		2,287,740
Biogen Idec, Inc. *		22,400		1,140,832
				3,428,572
Building Materials & Construction - 0.46%
Quanex Building Products Corp.		26,185		431,005
Business Services - 0.22%
URS Corp. *		4,300		206,228
Chemicals - 3.33%
Cabot Corp.		22,100		611,507
Cytec Industries, Inc.		30,000		1,524,000
Olin Corp.		29,000		780,390
Praxair, Inc.		2,518		226,217
				3,142,114
Computers & Business Equipment - 0.20%
Intermec, Inc. *		9,300		186,837
Construction & Mining Equipment - 0.54%
Carbo Ceramics, Inc.		8,500		510,850
Containers & Glass - 4.96%
Ball Corp.		18,731		860,127
Bemis Company, Inc.		32,500		907,400
Pactiv Corp. *		78,900		2,120,043
Silgan Holdings, Inc.		400		20,936
Sonoco Products Company		22,400		774,144
				4,682,650

 

	Shares or Principal Amount		Value
All Cap Value Fund (continued)
COMMON STOCKS (continued)
Cosmetics & Toiletries - 0.51%
Procter & Gamble Company		6,894	$	480,994
Crude Petroleum & Natural Gas - 1.22%
Chesapeake Energy Corp.		9,300		450,120
Forest Oil Corp. *		3,000		170,760
XTO Energy, Inc.		10,600		534,346
				1,155,226
Electrical Equipment - 1.75%
Anixter International, Inc. *		17,189		1,268,720
Baldor Electric Company		4,400		156,816
Emerson Electric Company		4,898		229,226
				1,654,762
Electrical Utilities - 2.11%
Black Hills Corp.		5,000		169,050
CMS Energy Corp.		5,160		70,021
The Southern Company		25,500		956,505
Wisconsin Energy Corp.		17,000		795,090
				1,990,666
Electronics - 0.57%
Rogers Corp. *		7,176		287,112
Teleflex, Inc.		3,900		251,823
				538,935
Financial Services - 7.39%
Bank of New York Mellon Corp.		46,798		1,619,679
Charles Schwab Corp.		9,200		220,708
Financial Federal Corp.		8,900		222,233
GATX Corp.		15,000		657,450
JP Morgan Chase & Company		41,300		1,589,637
Merrill Lynch & Company, Inc.		51,400		1,457,190
PNC Financial Services Group, Inc.		7,400		532,430
Wells Fargo & Company		22,300		675,021
				6,974,348
Food & Beverages - 1.69%
Diageo PLC, SADR		6,300		468,720
PepsiCo, Inc.		8,979		614,882
Smithfield Foods, Inc. *		25,600		514,816
				1,598,418
Gas & Pipeline Utilities - 4.91%
El Paso Corp.		71,800		1,203,368
Spectra Energy Corp.		49,300		1,304,478
UGI Corp.		36,200		995,500
Williams Companies, Inc.		36,500		1,127,485
				4,630,831
Gold - 1.35%
Barrick Gold Corp.		36,597		1,271,014
Healthcare Products - 0.51%
The Cooper Companies, Inc.		3,800		139,954
The Medicines Company *		14,000		341,040
				480,994
Healthcare Services - 2.44%
DaVita, Inc. *		40,100		2,301,339

 

The accompanying notes are an integral part of the financial statements.

89

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
All Cap Value Fund (continued)
COMMON STOCKS (continued)
Holdings Companies/Conglomerates - 1.00%
Berkshire Hathaway, Inc., Class B *		242	$	944,284
Hotels & Restaurants - 1.48%
Brinker International, Inc.		21,100		399,212
Darden Restaurants, Inc.		19,900		582,871
Red Robin Gourmet Burgers, Inc. *		10,300		275,010
Sonic Corp. *		9,700		140,553
				1,397,646
Industrial Machinery - 4.97%
IDEX Corp.		23,367		866,215
Ingersoll-Rand Company, Ltd., Class A		15,500		572,415
ITT Corp.		22,700		1,447,125
Kennametal, Inc.		19,400		683,462
Parker-Hannifin Corp.		17,600		1,127,632
				4,696,849
Insurance - 1.49%
Aon Corp.		29,100		1,381,959
Chubb Corp.		600		28,806
				1,410,765
International Oil - 2.78%
EnCana Corp.		6,800		509,320
Exxon Mobil Corp.		26,491		2,119,545
				2,628,865
Internet Software - 1.57%
McAfee, Inc. *		37,499		1,483,460
Liquor - 0.37%
Brown Forman Corp., Class B		4,800		345,648
Manufacturing - 5.67%
AptarGroup, Inc.		11,400		460,446
Carlisle Companies, Inc.		63,554		2,058,514
Eaton Corp.		21,790		1,594,592
Hexcel Corp. *		13,300		276,374
Honeywell International, Inc.		19,200		963,264
				5,353,190
Petroleum Services - 4.11%
BJ Services Company		61,000		1,637,850
Halliburton Company		18,058		793,469
PetroHawk Energy Corp. *		4,500		155,745
Superior Energy Services, Inc. *		27,400		1,288,896
				3,875,960
Pharmaceuticals - 11.62%
Abbott Laboratories		56,000		3,216,080
Eli Lilly & Company		27,800		1,296,870
Onyx Pharmaceuticals, Inc. *		29,800		1,217,926
OSI Pharmaceuticals, Inc. *		21,900		1,105,950
Schering-Plough Corp.		134,204		2,603,558
Watson Pharmaceuticals, Inc. *		50,300		1,524,593
				10,964,977
Retail Grocery - 1.98%
The Kroger Company		67,734		1,870,813
Retail Trade - 3.52%
Costco Wholesale Corp.		24,700		1,656,382
Foot Locker, Inc.		21,000		342,090

 

	Shares or Principal Amount		Value
All Cap Value Fund (continued)
COMMON STOCKS (continued)
Retail Trade (continued)
Fossil, Inc. *		1,100	$	32,912
J.C. Penney Company, Inc.		6,900		268,893
Kohl’s Corp. *		17,700		870,309
Sonic Automotive, Inc.		14,100		151,716
				3,322,302
Steel - 0.73%
Carpenter Technology Corp.		17,800		690,818
Telecommunications Equipment & Services - 1.67%
Corning, Inc.		76,600		1,573,364
Transportation - 0.34%
Bristow Group, Inc. *		7,853		320,167
Trucking & Freight - 1.49%
Heartland Express, Inc.		26,300		434,476
Oshkosh Corp.		63,100		973,002
				1,407,478
TOTAL COMMON STOCKS (Cost $88,772,760)			$	92,652,159
REPURCHASE AGREEMENTS - 1.64%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $1,548,292 on 09/02/2008, collateralized by $1,555,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $1,581,902, including interest)	$	1,548,000	$	1,548,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,548,000)			$	1,548,000
Total Investments (All Cap Value Fund) (Cost $90,320,760) - 99.80%			$	94,200,159
Other Assets in Excess of Liabilities - 0.20%				187,236
TOTAL NET ASSETS - 100.00%			$	94,387,395

 

	Shares or Principal Amount		Value
American Diversified Growth & Income Fund
INVESTMENT COMPANIES - 102.54%
American Funds Insurance Series - 102.54%
American Capital World Bond Fund		3,057	$	60,035
American High-Income Trust		1,824		20,012
Bond Fund of America		11,451		140,041
Capital Income Builder Fund		736		39,908
Capital World Growth and Income Fund		1,332		50,054
EuroPacific Growth Fund		1,184		50,054
Fundamental Investors		3,222		120,131
Growth Fund of America		4,571		140,152
Income Fund of America		2,358		39,724
Investment Company of America		4,866		140,152
New Perspective Fund		1,369		40,044

 

The accompanying notes are an integral part of the financial statements.

90

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
American Diversified Growth & Income Fund (continued)
INVESTMENT COMPANIES (continued)
American Funds Insurance Series (continued)
New World Fund		398	$	20,022
SMALLCAP World Fund		605		20,022
Washington Mutual Investors Fund		4,114		121,984
				1,002,335
TOTAL INVESTMENT COMPANIES (Cost $1,029,645)			$	1,002,335
Total Investments (American Diversified Growth & Income Fund) (Cost $1,029,645) - 102.54%			$	1,002,335
Liabilities in Excess of Other Assets - (2.54)%				(24,806	)
TOTAL NET ASSETS - 100.00%			$	977,529

 

	Shares or Principal Amount		Value
American Fundamental Holdings Fund
INVESTMENT COMPANIES - 102.52%
American Funds Insurance Series - 102.52%
Bond Fund of America		20,496	$	250,672
EuroPacific Growth Fund		3,087		130,454
Fundamental Investors		3,229		120,417
Growth Fund of America		3,928		120,418
Income Fund of America		4,726		79,641
Investment Company of America		4,181		120,418
U.S. Government Securities Fund		5,955		80,744
Washington Mutual Investors Fund		3,428		101,653
				1,004,417
TOTAL INVESTMENT COMPANIES (Cost $1,030,150)			$	1,004,417
Total Investments (American Fundamental Holdings Fund) (Cost $1,030,150) - 102.52%			$	1,004,417
Liabilities in Excess of Other Assets - (2.52)%				(24,701	)
TOTAL NET ASSETS - 100.00%			$	979,716

 

	Shares or Principal Amount		Value
American Global Diversification Fund
INVESTMENT COMPANIES - 102.61%
American Funds Insurance Series - 102.61%
American High-Income Trust		6,293	$	69,039
Bond Fund of America		16,845		206,018
Capital Income Builder Fund		1,435		77,798
Capital World Growth and Income Fund		4,155		156,136
EuroPacific Growth Fund		2,309		97,587
New Perspective Fund		4,002		117,102
New World Fund		1,939		97,582

 

	Shares or Principal Amount		Value
American Global Diversification Fund (continued)
INVESTMENT COMPANIES (continued)
American Funds Insurance Series (continued)
SMALLCAP World Fund		4,716	$	156,137
				977,399
TOTAL INVESTMENT COMPANIES (Cost $1,029,708)			$	977,399
Total Investments (American Global Diversification Fund) (Cost $1,029,708) - 102.61%			$	977,399
Liabilities in Excess of Other Assets - (2.61)%				(24,826	)
TOTAL NET ASSETS - 100.00%			$	952,573

 

	Shares or Principal Amount		Value
Blue Chip Growth Fund
COMMON STOCKS - 99.41%
Advertising - 0.82%
Monster Worldwide, Inc. *		288,000	$	5,627,520
Omnicom Group, Inc.		261,500		11,084,985
				16,712,505
Aerospace - 2.36%
General Dynamics Corp.		318,826		29,427,640
Lockheed Martin Corp.		127,400		14,834,456
Rockwell Collins, Inc.		52,301		2,750,509
United Technologies Corp.		17,300		1,134,707
				48,147,312
Agriculture - 1.66%
Monsanto Company		297,596		34,000,343
Apparel & Textiles - 0.32%
Coach, Inc. *		226,300		6,560,437
Banking - 1.02%
Northern Trust Corp.		259,611		20,870,128
Biotechnology - 2.11%
Genentech, Inc. *		435,778		43,033,077
Broadcasting - 0.46%
Discovery Holding Company *		463,500		9,376,605
Building Materials & Construction - 0.37%
Foster Wheeler, Ltd. *		153,400		7,622,446
Business Services - 2.86%
Accenture, Ltd., Class A		465,600		19,257,216
Automatic Data Processing, Inc.		592,167		26,280,371
Fiserv, Inc. *		247,200		12,819,792
				58,357,379
Cable & Television - 0.21%
Rogers Communications, Inc.		26,132		945,456
Shaw Communications, Inc.		158,200		3,404,464
				4,349,920
Cellular Communications - 1.53%
America Movil SA de CV, Series L, ADR		545,549		28,030,308
Metropcs Communications, Inc. *		190,700		3,217,109
				31,247,417

 

The accompanying notes are an integral part of the financial statements.

91

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Blue Chip Growth Fund (continued)
COMMON STOCKS (continued)
Chemicals - 1.86%
Potash Corp. of Saskatchewan, Inc.		80,200	$	13,922,720
Praxair, Inc.		267,000		23,987,280
				37,910,000
Computers & Business Equipment - 7.68%
Apple, Inc. *		383,100		64,946,943
Cisco Systems, Inc. *		985,982		23,712,867
Dell, Inc. *		697,127		15,148,570
EMC Corp. *		430,648		6,580,302
Hewlett-Packard Company		366,000		17,172,720
Juniper Networks, Inc. *		1,136,679		29,212,650
				156,774,052
Construction & Mining Equipment - 0.45%
Joy Global, Inc.		128,500		9,128,640
Cosmetics & Toiletries - 0.85%
Procter & Gamble Company		248,728		17,353,753
Crude Petroleum & Natural Gas - 0.80%
EOG Resources, Inc.		149,700		15,631,674
Newfield Exploration Company *		17,400		786,828
				16,418,502
Drugs & Health Care - 0.79%
Novartis AG		4,900		272,972
Wyeth		365,946		15,838,143
				16,111,115
Electronics - 0.24%
Thermo Fisher Scientific, Inc. *		52,500		3,179,400
Tyco Electronics, Ltd.		52,300		1,721,193
				4,900,593
Energy - 0.16%
McDermott International, Inc. *		96,100		3,337,553
Financial Services - 11.07%
American Express Company		40,448		1,604,977
Ameriprise Financial, Inc.		348,489		15,664,581
Bank of New York Mellon Corp.		261,139		9,038,021
BlackRock, Inc.		42,270		9,183,157
Charles Schwab Corp.		379,314		9,099,743
Citigroup, Inc.		87,100		1,654,029
CME Group, Inc.		24,350		8,166,503
Franklin Resources, Inc.		326,335		34,102,007
Goldman Sachs Group, Inc.		169,024		27,714,865
IntercontinentalExchange, Inc. *		52,250		4,599,568
MasterCard, Inc., Class A		51,560		12,505,878
Merrill Lynch & Company, Inc.		174,910		4,958,699
Morgan Stanley		456,500		18,638,895
State Street Corp.		654,529		44,291,977
Visa, Inc.		154,900		11,756,910
Western Union Company		472,400		13,047,688
				226,027,498
Food & Beverages - 0.73%
PepsiCo, Inc.		180,266		12,344,615
Sysco Corp.		32,848		1,045,552
The Coca-Cola Company		27,400		1,426,718
				14,816,885

 

	Shares or Principal Amount		Value
Blue Chip Growth Fund (continued)
COMMON STOCKS (continued)
Healthcare Products - 6.39%
Alcon, Inc.		97,400	$	16,586,246
Baxter International, Inc.		246,400		16,696,064
Becton, Dickinson & Company		112,000		9,786,560
Covidien, Ltd.		126,700		6,850,669
Intuitive Surgical, Inc. *		16,350		4,827,664
Medtronic, Inc.		570,846		31,168,192
St. Jude Medical, Inc. *		481,564		22,070,078
Stryker Corp.		334,421		22,469,747
				130,455,220
Healthcare Services - 3.43%
Express Scripts, Inc. *		179,900		13,206,459
Humana, Inc. *		253,500		11,762,400
McKesson Corp.		272,200		15,727,716
Medco Health Solutions, Inc. *		466,800		21,869,580
WellPoint, Inc. *		142,928		7,545,169
				70,111,324
Holdings Companies/Conglomerates - 0.60%
General Electric Company		435,698		12,243,114
Hotels & Restaurants - 2.06%
Marriott International, Inc., Class A		403,112		11,371,789
McDonald’s Corp.		216,100		13,409,005
Yum! Brands, Inc.		484,000		17,269,120
				42,049,914
Industrial Machinery - 0.16%
Cummins, Inc.		24,500		1,596,420
Deere & Company		22,700		1,601,939
				3,198,359
Industrials - 0.31%
Fastenal Company		120,800		6,273,144
Insurance - 1.18%
Aetna, Inc.		498,652		21,511,847
Prudential Financial, Inc.		35,000		2,579,850
				24,091,697
International Oil - 2.60%
Chevron Corp.		87,100		7,518,472
Exxon Mobil Corp.		301,962		24,159,980
Murphy Oil Corp.		149,842		11,767,092
Petroleo Brasileiro SA, SADR		224,800		9,659,656
				53,105,200
Internet Content - 3.21%
Google, Inc., Class A *		141,384		65,501,793
Internet Retail - 3.38%
Amazon.com, Inc. *		612,911		49,529,338
eBay, Inc. *		508,862		12,685,930
Expedia, Inc. *		382,500		6,754,950
				68,970,218
Internet Software - 1.41%
McAfee, Inc. *		307,500		12,164,700
Tencent Holdings, Ltd.		436,800		3,706,823
VeriSign, Inc. *		404,300		12,925,471
				28,796,994

 

The accompanying notes are an integral part of the financial statements.

92

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Blue Chip Growth Fund (continued)
COMMON STOCKS (continued)
Leisure Time - 2.28%
Electronic Arts, Inc. *		413,596	$	20,187,621
International Game Technology		242,198		5,190,303
Las Vegas Sands Corp. * (a)		252,500		11,971,025
MGM Mirage, Inc. * (a)		261,465		9,200,953
				46,549,902
Manufacturing - 3.92%
Danaher Corp.		721,437		58,847,616
Illinois Tool Works, Inc.		181,326		8,995,583
Tyco International, Ltd.		284,100		12,182,208
				80,025,407
Mining - 1.13%
BHP Billiton, Ltd.		34,900		1,225,750
Freeport-McMoRan Copper & Gold, Inc., Class B		244,300		21,820,876
				23,046,626
Petroleum Services - 6.19%
Baker Hughes, Inc.		260,441		20,837,884
Schlumberger, Ltd.		670,608		63,184,686
Smith International, Inc.		608,628		42,421,372
				126,443,942
Pharmaceuticals - 5.46%
Allergan, Inc.		332,200		18,560,014
Celgene Corp. *		469,100		32,508,630
Elan Corp. PLC, SADR *		65,100		871,689
Gilead Sciences, Inc. *		830,238		43,736,938
Roche Holdings AG - Genusschein		73,706		12,403,124
Schering-Plough Corp.		177,200		3,437,680
				111,518,075
Publishing - 1.01%
McGraw-Hill Companies, Inc.		479,200		20,528,928
Railroads & Equipment - 0.18%
Union Pacific Corp.		43,800		3,674,820
Retail Trade - 4.22%
Bed Bath & Beyond, Inc. *		279,300		8,563,338
Costco Wholesale Corp.		154,100		10,333,946
CVS Caremark Corp.		648,632		23,739,931
Kohl’s Corp. *		369,370		18,161,923
Wal-Mart Stores, Inc.		428,636		25,319,529
				86,118,667
Semiconductors - 3.22%
Altera Corp.		149,900		3,393,736
Analog Devices, Inc.		121,957		3,409,918
Broadcom Corp., Class A *		174,300		4,193,658
Intel Corp.		723,408		16,544,341
Marvell Technology Group, Ltd. *		1,474,790		20,809,287
Xilinx, Inc.		668,275		17,361,784
				65,712,724
Software - 4.29%
Adobe Systems, Inc. *		251,525		10,772,816
Autodesk, Inc. *		358,200		12,726,846
Intuit, Inc. *		197,078		5,926,136
Microsoft Corp.		1,749,566		47,745,656

 

	Shares or Principal Amount		Value
Blue Chip Growth Fund (continued)
COMMON STOCKS (continued)
Software (continued)
Oracle Corp. *		478,838	$	10,500,917
				87,672,371
Steel - 0.04%
Nucor Corp.		16,300		855,750
Telecommunications Equipment & Services - 3.25%
American Tower Corp., Class A *		690,562		28,540,928
Corning, Inc.		296,185		6,083,640
Nokia Oyj, SADR		69,772		1,756,161
QUALCOMM, Inc.		569,123		29,964,326
				66,345,055
Telephone - 0.07%
AT&T, Inc.		43,600		1,394,764
Toys, Amusements & Sporting Goods - 0.84%
Nintendo Company, Ltd.		36,500		17,135,275
Transportation - 0.23%
Expeditors International of Washington, Inc.		132,300		4,774,707
TOTAL COMMON STOCKS (Cost $1,804,031,820)			$	2,029,650,150
SHORT TERM INVESTMENTS - 1.16%
John Hancock Cash
Investment Trust, 2.5657% (c)(i)	$	9,422,022	$	9,422,022
T. Rowe Price Reserve Investment Fund, 2.7528%		14,237,968		14,235,797
TOTAL SHORT TERM INVESTMENTS (Cost $23,657,819)			$	23,657,819
REPURCHASE AGREEMENTS - 0.10%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $2,043,386 on 09/02/2008, collateralized by $1,660,000 U.S. Treasury Bonds, 6.375% due 08/15/2027 (valued at $2,085,375, including interest)	$	2,043,000	$	2,043,000
TOTAL REPURCHASE AGREEMENTS (Cost $2,043,000)			$	2,043,000
Total Investments (Blue Chip Growth Fund) (Cost $1,829,732,639) - 100.67%			$	2,055,350,969
Liabilities in Excess of Other Assets - (0.67)%				(13,659,499	)
TOTAL NET ASSETS - 100.00%			$	2,041,691,470

 

	Shares or Principal Amount		Value
Capital Appreciation Fund
COMMON STOCKS - 97.48%
Aerospace - 4.20%
Lockheed Martin Corp.		62,700	$	7,300,788
Raytheon Company		269,500		16,167,305

 

The accompanying notes are an integral part of the financial statements.

93

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Capital Appreciation Fund (continued)
COMMON STOCKS (continued)
Aerospace (continued)
United Technologies Corp.		304,400	$	19,965,596
				43,433,689
Agriculture - 3.41%
Monsanto Company		308,500		35,246,125
Apparel & Textiles - 1.30%
NIKE, Inc., Class B		222,492		13,485,240
Biotechnology - 2.81%
Genentech, Inc. *		294,431		29,075,061
Computer Services - 0.74%
NetApp, Inc. *		299,200		7,623,616
Computers & Business Equipment - 12.09%
Apple, Inc. *		242,756		41,154,425
Cisco Systems, Inc. *		1,385,630		33,324,401
Hewlett-Packard Company		659,700		30,953,124
Research In Motion, Ltd. *		162,000		19,699,200
				125,131,150
Cosmetics & Toiletries - 2.24%
Colgate-Palmolive Company		305,100		23,196,753
Crude Petroleum & Natural Gas - 2.99%
Occidental Petroleum Corp.		208,200		16,522,752
Southwestern Energy Company *		375,200		14,396,424
				30,919,176
Drugs & Health Care - 1.56%
Wyeth		373,600		16,169,408
Electronics - 2.10%
Thermo Fisher Scientific, Inc. *		358,800		21,728,928
Energy - 2.87%
First Solar, Inc. *		72,800		20,140,120
McDermott International, Inc. *		275,900		9,582,007
				29,722,127
Financial Services - 6.38%
Charles Schwab Corp.		971,031		23,295,033
Goldman Sachs Group, Inc.		86,510		14,185,045
Lazard, Ltd., Class A		124,800		5,290,272
Visa, Inc.		305,600		23,195,040
				65,965,390
Food & Beverages - 2.91%
PepsiCo, Inc.		301,835		20,669,661
The Coca-Cola Company		182,000		9,476,740
				30,146,401
Healthcare Products - 5.21%
Alcon, Inc.		164,819		28,067,028
Baxter International, Inc.		380,700		25,796,232
				53,863,260
Healthcare Services - 1.49%
Medco Health Solutions, Inc. *		329,800		15,451,130
Hotels & Restaurants - 0.91%
Marriott International, Inc., Class A		334,200		9,427,782
Internet Content - 3.90%
Google, Inc., Class A *		87,093		40,349,316

 

	Shares or Principal Amount		Value
Capital Appreciation Fund (continued)
COMMON STOCKS (continued)
Internet Retail - 2.85%
Amazon.com, Inc. *		364,300	$	29,439,083
Leisure Time - 1.57%
Walt Disney Company		502,400		16,252,640
Manufacturing - 1.66%
ABB, Ltd., SADR		697,700		17,142,489
Petroleum Services - 6.10%
Halliburton Company		587,400		25,810,356
Schlumberger, Ltd.		395,494		37,263,445
				63,073,801
Pharmaceuticals - 11.88%
Abbott Laboratories		430,300		24,712,129
Celgene Corp. *		284,600		19,722,780
Gilead Sciences, Inc. *		928,572		48,917,173
Mylan, Inc. *		469,600		6,053,144
Teva Pharmaceutical Industries, Ltd., SADR		497,200		23,537,448
				122,942,674
Retail Trade - 6.04%
Costco Wholesale Corp.		284,600		19,085,276
CVS Caremark Corp.		541,000		19,800,600
Wal-Mart Stores, Inc.		400,200		23,639,814
				62,525,690
Semiconductors - 0.75%
NVIDIA Corp. *		614,500		7,767,280
Software - 5.67%
Adobe Systems, Inc. *		511,015		21,886,772
Infosys Technologies, Ltd., ADR		496,100		20,479,008
Microsoft Corp.		595,241		16,244,127
				58,609,907
Telecommunications Equipment & Services - 3.85%
Nokia Oyj, SADR		394,300		9,924,531
QUALCOMM, Inc.		568,000		29,905,200
				39,829,731
TOTAL COMMON STOCKS (Cost $904,099,352)			$	1,008,517,847
REPURCHASE AGREEMENTS - 2.33%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $24,135,558 on 09/02/2008, collateralized by $24,200,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $24,618,660, including interest)	$	24,131,000	$	24,131,000
TOTAL REPURCHASE AGREEMENTS (Cost $24,131,000)			$	24,131,000
Total Investments (Capital Appreciation Fund) (Cost $928,230,352) - 99.81%			$	1,032,648,847
Other Assets in Excess of Liabilities - 0.19%				1,938,685
TOTAL NET ASSETS - 100.00%			$	1,034,587,532

 

The accompanying notes are an integral part of the financial statements.

94

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Core Bond Fund
U.S. TREASURY OBLIGATIONS - 7.67%
U.S. Treasury Bonds - 3.58%
4.375% due 02/15/2038	$	808,000	$	802,256
4.75% due 02/15/2037		2,245,000		2,359,356
5.00% due 05/15/2037		118,700		129,708
5.375% due 02/15/2031		192,000		216,570
6.25% due 08/15/2023 to 05/15/2030		3,991,000		4,837,002
8.875% due 02/15/2019		991,000		1,395,606
				9,740,498
U.S. Treasury Notes - 3.87%
1.75% due 03/31/2010		65,300		64,831
3.25% due 12/31/2009		207,000		209,879
3.375% due 07/31/2013		2,840,000		2,878,828
3.50% due 02/15/2018		95,000		93,085
3.625% due 10/31/2009		396,000		402,404
3.875% due 05/15/2018		1,807,000		1,818,717
4.00% due 08/15/2018		4,587,000		4,656,878
4.50% due 05/15/2010		257,000		266,899
4.625% due 07/31/2009		122,000		124,650
				10,516,171
U.S. Treasury Strips - 0.22%
6.125% due 11/15/2027		1,459,000		602,323
TOTAL U.S. TREASURY OBLIGATIONS (Cost $20,556,366)			$	20,858,992
U.S. GOVERNMENT AGENCY OBLIGATIONS - 47.62%
Federal Home Loan Bank - 1.62%
3.375% due 06/24/2011		2,495,000		2,485,582
5.46% due 11/27/2015		1,916,742		1,930,492
				4,416,074
Federal Home Loan Mortgage Corp. - 13.18%
3.90% due 01/15/2023		624,391		615,173
4.50% due 04/01/2028 to 03/01/2035		960,537		897,720
4.50% due 03/01/2036 (j)		474,495		442,032
5.00% due 10/01/2014 to 02/16/2017		1,294,496		1,325,442
5.50% due 01/01/2017 to 12/01/2037		12,031,049		12,082,578
5.50% due 08/01/2037 to 05/01/2038 (j)		4,871,727		4,784,574
5.50% TBA **		7,000,000		6,879,140
5.739% due 05/01/2037 (b)		490,496		499,332
5.835% due 06/01/2037 (b)		234,056		235,374
5.848% due 12/01/2036 (b)		330,350		336,587
5.87% due 01/01/2037 (b)		676,746		687,413
5.909% due 04/01/2037 (b)		218,521		222,904
5.919% due 04/01/2037 (b)		844,546		861,796
5.93% due 05/01/2037 (b)		151,870		153,235
5.944% due 03/01/2037 to 05/01/2037 (b)		174,427		176,208
6.00% due 08/01/2016 to 05/01/2020		369,673		381,363
6.145% due 09/01/2037 (b)		686,875		701,634
6.308% due 06/01/2036 to 04/01/2037 (b)		441,852		452,273
6.389% due 10/01/2037 (b)		245,999		252,481
6.402% due 11/01/2037 (b)		131,115		134,484
6.50% due 08/01/2038 (j)		3,594,000		3,695,121
				35,816,864
Federal National Mortgage Association - 30.07%
4.00% due 05/01/2034		1,685,615		1,540,504
4.50% due 06/01/2013 to 09/01/2037		19,114,330		17,865,466
4.50% due 08/01/2035 to 07/01/2037 (j)		3,576,604		3,337,297

 

	Shares or Principal Amount		Value
Core Bond Fund (continued)
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
Federal National Mortgage Association (continued)
4.50% TBA **	$	2,200,000	$	2,130,392
5.00% due 07/01/2033 to 12/01/2036		13,610,625		13,159,179
5.00% TBA **		5,000,000		4,941,601
5.50% due 01/01/2019 to 07/01/2034		20,177,390		20,336,168
5.50% TBA **		8,322,000		8,309,515
5.743% due 05/01/2037 (b)		350,964		358,250
5.766% due 08/01/2037 (b)		510,409		521,184
5.881% due 02/01/2037 (b)		186,942		188,953
5.901% due 04/01/2037 (b)		868,666		888,883
5.943% due 01/01/2037 (b)		618,330		633,346
5.946% due 01/01/2037 (b)		281,965		285,633
5.978% due 04/01/2037 (b)		231,988		235,352
6.00% due 05/01/2021 to 11/01/2023		1,310,437		1,345,598
6.003% due 04/01/2037 (b)		156,703		158,735
6.026% due 01/01/2037 (b)		222,761		226,039
6.068% due 12/01/2036 (b)		315,682		320,820
6.098% due 12/01/2036 (b)		387,308		393,951
6.109% due 11/01/2037 (b)		595,052		604,803
6.125% due 12/01/2036 (b)		182,985		186,263
6.252% due 09/01/2037 (b)		649,753		665,933
6.50% due 03/01/2038 to 05/01/2038		1,975,734		2,033,617
7.00% due 11/01/2037 to 12/01/2037		1,023,725		1,071,032
				81,738,514
Government National Mortgage Association - 2.75%
6.00% TBA **		4,914,000		4,968,515
6.50% due 12/15/2032		1,417,637		1,490,470
6.50% TBA **		1,000,000		1,024,765
				7,483,750
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $128,157,040)			$	129,455,202
FOREIGN GOVERNMENT OBLIGATIONS - 0.39%
Mexico - 0.09%
Government of Mexico
5.875% due 01/15/2014		224,000		231,616
United Arab Emirates - 0.30%
Emirate of Abu Dhabi
5.50% due 08/02/2012		800,000		826,095
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $1,032,791)			$	1,057,711
CORPORATE BONDS - 19.77%
Aluminum - 0.43%
Alcoa, Inc.
6.00% due 07/15/2013		1,170,000		1,171,361
Automobiles - 0.70%
DaimlerChrysler NA Holding Corp.
6.50% due 11/15/2013		875,000		869,288
8.50% due 01/18/2031		150,000		154,242
DaimlerChrysler NA Holding Corp., MTN
3.1381% due 03/13/2009 (b)		870,000		868,313
				1,891,843

 

The accompanying notes are an integral part of the financial statements.

95

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Core Bond Fund (continued)
CORPORATE BONDS (continued)
Banking - 1.71%
Bank of America Corp.
5.375% due 06/15/2014	$	195,000	$	188,913
5.65% due 05/01/2018		480,000		442,805
Credit Suisse New York
6.00% due 02/15/2018		715,000		686,009
Credit Suisse New York, MTN
5.00% due 05/15/2013		515,000		501,623
Export-Import Bank Of Korea
5.50% due 10/17/2012		565,000		563,072
HSBC Holdings PLC
6.80% due 06/01/2038		360,000		340,701
PNC Funding Corp.
5.25% due 11/15/2015		424,000		396,431
US Bank NA, MTN
5.92% due 05/25/2012		1,182,888		1,224,230
Wachovia Capital Trust III
5.80% due 03/15/2042 (b)		335,000		180,900
Wachovia Corp.
5.75% due 02/01/2018		155,000		131,465
				4,656,149
Business Services - 0.12%
Thomson Reuters Corp.
5.95% due 07/15/2013		330,000		334,524
Cable & Television - 0.90%
AT&T Broadband Corp.
8.375% due 03/15/2013		1,637,000		1,808,134
Rogers Cable, Inc.
5.50% due 03/15/2014		215,000		210,353
Time Warner Entertainment Company LP
8.375% due 07/15/2033		401,000		429,879
				2,448,366
Cellular Communications - 0.44%
America Movil SAB de CV
6.125% due 11/15/2037		111,000		101,154
6.375% due 03/01/2035		106,000		101,780
Rogers Wireless, Inc.
6.375% due 03/01/2014		970,000		983,906
				1,186,840
Commercial Services - 0.10%
Hutchison Whampoa International 03/33, Ltd.
7.45% due 11/24/2033 (h)		255,000		258,807
Computers & Business Equipment - 0.31%
Xerox Corp.
5.50% due 05/15/2012		315,000		312,876
6.35% due 05/15/2018		560,000		541,708
				854,584
Crude Petroleum & Natural Gas - 1.67%
Husky Oil Company, Ltd.
7.55% due 11/15/2016		230,000		245,218
Petrobras International Finance Company
5.875% due 03/01/2018		855,000		834,444
Ras Laffan Liquefied Natural Gas Company, Ltd. III
6.332% due 09/30/2027 (h)		355,000		322,148
Southern Natural Gas Company
5.90% due 04/01/2017 (h)		395,000		374,270

 

	Shares or Principal Amount		Value
Core Bond Fund (continued)
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas
(continued)
Transocean, Inc.
6.00% due 03/15/2018	$	470,000	$	468,842
Weatherford International, Inc.
5.95% due 06/15/2012		245,000		248,990
6.35% due 06/15/2017		315,000		316,433
XTO Energy, Inc.
5.75% due 12/15/2013		825,000		828,063
6.375% due 06/15/2038		100,000		90,146
6.50% due 12/15/2018		825,000		822,590
				4,551,144
Domestic Oil - 0.32%
Devon Financing Corp., ULC
6.875% due 09/30/2011		815,000		865,816
Drugs & Health Care - 0.61%
GlaxoSmithKline Capital, Inc.
6.375% due 05/15/2038		425,000		425,229
Wyeth
6.95% due 03/15/2011		1,155,000		1,226,448
				1,651,677
Electrical Utilities - 1.73%
Allegheny Energy Supply Company LLC
8.25% due 04/15/2012 (h)		335,000		351,750
CMS Energy Corp.
6.55% due 07/17/2017		265,000		251,927
Commonwealth Edison
6.15% due 09/15/2017		270,000		270,659
DPL, Inc.
6.875% due 09/01/2011		735,000		768,245
Duke Energy Carolinas LLC
6.00% due 01/15/2038		195,000		188,768
Florida Power Corp.
6.40% due 06/15/2038		400,000		407,035
Nevada Power Company, Series A
8.25% due 06/01/2011		565,000		605,869
Progress Energy, Inc.
6.85% due 04/15/2012		230,000		242,557
Taqa Abu Dhabi National Energy Company
5.62% due 10/25/2012 (h)		1,649,000		1,618,975
				4,705,785
Financial Services - 3.89%
Allied Capital Corp.
6.625% due 07/15/2011		1,105,000		1,067,739
American Express Company
8.15% due 03/19/2038		405,000		413,373
Citigroup, Inc.
3.625% due 02/09/2009		425,000		424,284
6.125% due 05/15/2018		480,000		448,777
6.50% due 08/19/2013		2,375,000		2,377,591
8.40% due 04/29/2049 (b)		525,000		445,735
General Electric Capital Corp., Series A, MTN
3.75% due 12/15/2009		581,000		584,757
Goldman Sachs Capital II
5.793% due 12/29/2049 (b)		670,000		415,259
Goldman Sachs Group, Inc.
6.75% due 10/01/2037		605,000		532,311

 

The accompanying notes are an integral part of the financial statements.

96

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
Core Bond Fund (continued)
CORPORATE BONDS (continued)
Financial Services (continued)
JP Morgan Chase & Company
6.40% due 05/15/2038	$	475,000	$	441,179
JP Morgan Chase Bank NA, BKNT
6.00% due 10/01/2017		475,000		459,798
Lazard Group LLC
6.85% due 06/15/2017		650,000		558,863
7.125% due 05/15/2015		850,000		775,370
Morgan Stanley
6.25% due 08/28/2017		460,000		418,689
Morgan Stanley, MTN
5.95% due 12/28/2017		635,000		565,095
6.625% due 04/01/2018		680,000		631,804
				10,560,624
Food & Beverages - 0.73%
Dr Pepper Snapple Group, Inc.
6.82% due 05/01/2018		495,000		504,041
Kraft Foods, Inc.
6.125% due 02/01/2018		965,000		947,723
6.125% due 08/23/2018		315,000		308,991
McDonald’s Corp., MTN
6.30% due 03/01/2038		235,000		232,822
				1,993,577
Gas & Pipeline Utilities - 0.69%
El Paso Natural Gas Company
5.95% due 04/15/2017		155,000		147,335
Kinder Morgan, Inc.
6.50% due 09/01/2012		1,105,000		1,093,950
TransCanada Pipelines, Ltd.
7.25% due 08/15/2038		630,000		645,750
				1,887,035
Healthcare Services - 0.35%
Coventry Health Care, Inc.
5.95% due 03/15/2017		675,000		593,253
UnitedHealth Group, Inc.
6.875% due 02/15/2038		390,000		358,186
				951,439
Hotels & Restaurants - 0.14%
Yum! Brands, Inc.
6.875% due 11/15/2037		425,000		392,706
Industrial Machinery - 0.06%
Weatherford International, Ltd.
7.00% due 03/15/2038		160,000		159,401
Insurance - 0.57%
ACE INA Holdings, Inc.
5.70% due 02/15/2017		200,000		191,871
6.70% due 05/15/2036		95,000		90,741
American International Group, Inc.
8.25% due 08/15/2018 (h)		950,000		936,530
Liberty Mutual Group, Inc.
7.50% due 08/15/2036 (h)		383,000		330,788
				1,549,930
International Oil - 0.17%
Husky Energy, Inc.
6.80% due 09/15/2037		170,000		159,454

 

	Shares or Principal Amount		Value
Core Bond Fund (continued)
CORPORATE BONDS (continued)
International Oil (continued)
Petro-Canada
6.80% due 05/15/2038	$	320,000	$	304,427
				463,881
Liquor - 0.24%
Diageo Capital PLC
5.20% due 01/30/2013		480,000		485,601
5.75% due 10/23/2017		155,000		153,621
				639,222
Mining - 0.50%
Rio Tinto Finance USA, Ltd.
5.875% due 07/15/2013		865,000		872,303
6.50% due 07/15/2018		470,000		472,874
				1,345,177
Pharmaceuticals - 0.33%
AstraZeneca PLC
5.40% due 09/15/2012		395,000		407,936
Schering-Plough Corp.
6.55% due 09/15/2037		505,000		481,850
				889,786
Pipelines - 0.17%
Plains All American Pipeline LP
6.50% due 05/01/2018 (h)		476,000		468,254
Real Estate - 0.81%
Health Care Property Investors, Inc.
5.65% due 12/15/2013		640,000		579,731
WEA Finance LLC
7.125% due 04/15/2018 (h)		1,220,000		1,167,722
Westfield Group
5.40% due 10/01/2012 (h)		471,000		447,490
				2,194,943
Retail - 0.16%
Wal-Mart Stores, Inc.
6.20% due 04/15/2038		440,000		435,256
Retail Trade - 0.10%
Nordstrom, Inc.
7.00% due 01/15/2038		305,000		276,340
Software - 0.23%
Oracle Corp.
5.75% due 04/15/2018		626,000		627,785
Telecommunications Equipment & Services - 0.47%
Corning, Inc.
7.25% due 08/15/2036		150,000		150,528
France Telecom SA
7.75% due 03/01/2011		460,000		490,154
SBC Communications, Inc.
5.10% due 09/15/2014		640,000		633,000
				1,273,682
Telephone - 0.74%
AT&T, Inc.
6.40% due 05/15/2038		224,000		214,029
British Telecommunications PLC
5.95% due 01/15/2018		243,000		230,547

 

The accompanying notes are an integral part of the financial statements.

97

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Core Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telephone (continued)
Qwest Corp.
7.50% due 10/01/2014	$	665,000	$	616,788
Telefonica Emisiones SAU
5.855% due 02/04/2013		200,000		200,242
5.984% due 06/20/2011		740,000		751,537
				2,013,143
Tobacco - 0.11%
Philip Morris International, Inc.
5.65% due 05/16/2018		300,000		295,142
Transportation - 0.12%
Burlington Northern Santa Fe Corp.
5.75% due 03/15/2018		325,000		322,877
Utility Service - 0.15%
Pacificorp
6.25% due 10/15/2037		425,000		412,883
TOTAL CORPORATE BONDS (Cost $55,491,880)			$	53,729,979
COLLATERALIZED MORTGAGE
OBLIGATIONS - 20.61%
Federal Home Loan Mortgage Corp., Series
2003-2702, Class AD
4.50% due 08/15/2032		426,000		412,995
American Tower Trust, Series 2007-1A, Class AFX
5.4197% due 04/15/2037 (h)		484,000		461,470
Banc of America Commercial Mortgage, Inc.,
Series 2008-1, Class A4
6.3457% due 12/10/2017 (b)		134,000		125,682
Banc of America Commercial Mortgage, Inc.,
Series 2000-1, Class A2A
7.333% due 11/15/2031 (b)		484,172		491,610
Banc of America Commercial Mortgage, Inc.,
Series 2002-PB2, Class B
6.309% due 06/11/2035		143,000		145,418
Banc of America Commercial Mortgage, Inc.,
Series 2003-1, Class A2
4.648% due 09/11/2036		318,000		304,369
Banc of America Commercial Mortgage, Inc.,
Series 2004-2, Class A5
4.58% due 02/10/2014		78,000		72,902
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2002-PBW1, Class A2
4.72% due 11/11/2035 (b)		246,000		237,142
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2000-WF1, Class A2
7.78% due 02/15/2032 (b)		1,400,649		1,436,875
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2004-ESA, Class C
4.937% due 05/14/2016 (h)		569,000		573,630
Bear Stearns Commercial Mortgage Securities,
Inc., Series 2004-PWR6, Class A6
4.825% due 11/11/2041		88,000		82,229
Citigroup Commercial Mortgage Trust, Series
2008-C7, Class A4
6.2991% due 12/10/2049 (b)		1,004,000		940,341
Citimortgage Alternative Loan Trust, Inc., Series
2006-A1, Class 1A6
6.00% due 04/25/2036		523,800		371,735

 

Core Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Commercial Mortgage Pass Through Certificates,
Series 2001-J2A, Class A2
6.096% due 07/16/2034	$	868,000	$	877,640
Countrywide Alternative Loan Trust,
Series 2006-OC6, Class 2A1
2.5419% due 07/25/2036 (b)		365,218		341,592
CS First Boston Mortgage Securities Corp., Series
2002-CP5, Class A2
4.94% due 12/15/2035		146,000		141,891
CS First Boston Mortgage Securities Corp.,
Series 2001-CF2, Class A4
6.505% due 02/15/2034		323,444		329,720
CS First Boston Mortgage Securities Corp.,
Series 2001-CK1, Class A3
6.38% due 12/18/2035		180,315		183,340
CS First Boston Mortgage Securities Corp.,
Series 2001-CKN5, Class A4
5.435% due 09/15/2034		381,024		379,912
CS First Boston Mortgage Securities Corp.,
Series 2002-CKN2, Class A3
6.133% due 04/15/2037		33,000		33,409
CS First Boston Mortgage Securities Corp.,
Series 2002-CKS4, Class A2
5.183% due 11/15/2036		1,017,000		995,733
CS First Boston Mortgage Securities Corp.,
Series 2003-C4, Class A4
5.137% due 08/15/2036 (b)		238,000		230,507
CS First Boston Mortgage Securities Corp.,
Series 2003-C5, Class A4
4.90% due 12/15/2036 (b)		210,000		200,525
CS First Boston Mortgage Securities Corp.,
Series 2003-CK2, Class A4
4.801% due 03/15/2036		180,000		172,769
DLJ Commercial Mortgage Corp.,
Series 1999-CG3, Class A1B
7.34% due 10/10/2032		429,951		437,911
DLJ Commercial Mortgage Corp.,
Series 2000-CKP1, Class A1B
7.18% due 11/10/2033		368,725		379,863
DLJ Commercial Mortgage Corp.,
Series 1999-CG2,Class A1B
7.30% due 06/10/2032		121,936		123,455
Federal Home Loan Bank,
Series 2007-2014, Class 1
5.34% due 03/20/2014		757,354		757,418
Federal Home Loan Mortgage Corp.
3.57% due 06/15/2029		201,362		200,475
Federal Home Loan Mortgage Corp., Series
2003-2695, Class BG
4.50% due 04/15/2032		487,000		472,551
Federal Home Loan Mortgage Corp., Series
2005-3008, Class JM
4.50% due 07/15/2025		302,000		283,638
Federal Home Loan Mortgage Corp., Series
2007-3313, Class GA
5.00% due 06/15/2033		332,962		332,560
Federal Home Loan Mortgage Corp., Series
2007-3317, Class PG
5.00% due 04/15/2036		149,000		143,209

 

The accompanying notes are an integral part of the financial statements.

98

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Core Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp., Series
2008-3460, Class PB
5.00% due 06/15/2031	$	175,000	$	174,443
Federal Home Loan Mortgage Corp., Series
2008-3460, Class PC
5.00% due 08/15/2034		868,000		844,638
Federal Home Loan Mortgage Corp., Series 3320,
Class TB
5.50% due 06/15/2030		197,000		199,984
Federal Home Loan Mortgage Corp.,
Series 2002-2542, Class ES
5.00% due 12/15/2017		686,000		684,936
Federal Home Loan Mortgage Corp.,
Series 2003-2558, Class BD
5.00% due 01/15/2018		520,000		514,568
Federal Home Loan Mortgage Corp.,
Series 2003-2583, Class TD
4.50% due 12/15/2013		650,284		647,597
Federal Home Loan Mortgage Corp.,
Series 2003-2590, Class NU
5.00% due 06/15/2017		381,000		389,818
Federal Home Loan Mortgage Corp.,
Series 2003-2603, Class KT
4.75% due 07/15/2014		676,983		674,515
Federal Home Loan Mortgage Corp.,
Series 2003-2623, Class AJ
4.50% due 07/15/2016		330,000		329,682
Federal Home Loan Mortgage Corp.,
Series 2003-2672, Class HA
4.00% due 09/15/2016		158,868		157,748
Federal Home Loan Mortgage Corp.,
Series 2003-2694, Class QG
4.50% due 01/15/2029		762,000		762,687
Federal Home Loan Mortgage Corp.,
Series 2003-2725, Class PC
4.50% due 05/15/2028		217,000		218,490
Federal Home Loan Mortgage Corp.,
Series 2004-2780, Class TB
3.00% due 12/15/2024		94,481		94,260
Federal Home Loan Mortgage Corp.,
Series 2004-2790, Class TN
4.00% due 05/15/2024		408,000		362,459
Federal Home Loan Mortgage Corp.,
Series 2005-3017, Class TA
4.50% due 08/15/2035		406,278		402,561
Federal Home Loan Mortgage Corp.,
Series 2005-3035, Class PA
5.50% due 09/15/2035		277,458		282,508
Federal Home Loan Mortgage Corp.,
Series 2006-3104, Class QC
5.00% due 09/15/2031		585,000		587,513
Federal Home Loan Mortgage Corp.,
Series 2006-3117, Class PC
5.00% due 06/15/2031		1,227,000		1,246,936
Federal Home Loan Mortgage Corp.,
Series 2007-3268, Class HC
5.00% due 12/15/2032		273,000		269,698
Federal Home Loan Mortgage Corp.,
Series 2007-3289, Class PB
5.00% due 11/15/2029		327,000		325,569

 

Core Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp.,
Series 2007-3298, Class VB
5.00% due 11/15/2025	$	302,000	$	285,273
Federal Home Loan Mortgage Corp.,
Series 2007-3316, Class HA
5.00% due 07/15/2035		952,530		954,102
Federal Home Loan Mortgage Corp.,
Series 2007-3351, Class PK
5.50% due 01/15/2032		1,167,000		1,189,270
Federal Home Loan Mortgage Corp.,
Series 2007-3372, Class BD
4.50% due 10/15/2022		339,000		315,739
Federal Home Loan Mortgage Corp., Series 3079,
Class MD
5.00% due 03/15/2034		533,000		519,979
Federal National Mortgage Association, Series
2001-T6, Class A
5.703% due 05/25/2011		40,300		41,327
Federal National Mortgage Association, Series
2003-92, Class NM
3.50% due 04/25/2013		155		154
Federal National Mortgage Association, Series
2007-26, Class BA
5.50% due 05/25/2029		130,000		129,797
Federal National Mortgage Association,
Series 2003-108, Class BE
4.00% due 11/25/2018		333,000		313,089
Federal National Mortgage Association,
Series 2003-113, Class PN
3.50% due 02/25/2013		216,295		215,541
Federal National Mortgage Association,
Series 2003-15, Class CH
4.00% due 02/25/2017		150,169		149,193
Federal National Mortgage Association,
Series 2003-16, Class PN
4.50% due 10/25/2015		194,011		195,686
Federal National Mortgage Association,
Series 2003-3, Class HJ
5.00% due 02/25/2018		324,000		322,848
Federal National Mortgage Association,
Series 2003-30, Class ET
3.50% due 08/25/2016		369,568		365,662
Federal National Mortgage Association,
Series 2004-34, Class PL
3.50% due 05/25/2014		107,943		107,934
Federal National Mortgage Association,
Series 2004-60, Class PA
5.50% due 04/25/2034		267,986		272,924
Federal National Mortgage Association,
Series 2005-58, Class MA
5.50% due 07/25/2035		235,071		238,901
Federal National Mortgage Association,
Series 2007-113, Class DB
4.50% due 12/25/2022		340,000		313,310
Federal National Mortgage Association,
Series 2007-30, Class MA
4.25% due 02/25/2037		649,137		633,512
Federal National Mortgage Association,
Series 2007-39, Class NA
4.25% due 01/25/2037		1,035,523		1,016,731

 

The accompanying notes are an integral part of the financial statements.

99

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Core Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
First Horizon Alternative Mortgage Securities,
Series 2006-FA6, Class 2A10
6.00% due 11/25/2036	$	315,125	$	302,827
First Horizon Alternative Mortgage Securities,
Series 2006-RE1, Class A1
5.50% due 05/25/2035		512,957		352,658
First Union National Bank Commercial Mortgage,
Series 2000-C2, Class A2
7.202% due 10/15/2032		255,339		263,108
First Union National Bank Commercial Mortgage,
Series 1999-C4, Class A2
7.39% due 12/15/2031		20,478		20,927
First Union National Bank Commercial Mortgage,
Series 2001-C4, Class B
6.417% due 12/12/2033		188,000		191,728
GE Capital Commercial Mortgage Corp, Series
2002-1A, Class A3
6.269% due 12/10/2035		252,000		256,008
GE Capital Commercial Mortgage Corp.,
Series 2001-2, Class A3
6.03% due 08/11/2033		126,561		128,260
General Motors Acceptance Corp. Commercial
Mortgage Securities, Inc.,
Series 2004-C1, Class A1
3.118% due 03/10/2038		50,911		50,668
GMAC Commercial Mortgage Securities, Inc.,
Series 2000-C1, Class A2
7.724% due 03/15/2033 (b)		450,195		462,091
GMAC Commercial Mortgage Securities, Inc.,
Series 2000-C2, Class A2
7.455% due 08/16/2033 (b)		786,802		810,959
GMAC Commercial Mortgage Securities, Inc.,
Series 2000-C3, Class A2
6.957% due 09/15/2035		779,094		800,606
GMAC Commercial Mortgage Securities, Inc.,
Series 2001-C2, Class A2
6.70% due 04/15/2034		4,939,000		5,079,229
GMAC Commercial Mortgage Securities, Inc.,
Series 2002-C3, Class A2
4.93% due 07/10/2039		397,000		385,046
GMAC Commercial Mortgage Securities, Inc.,
Series 2003-C3, Class A4
5.023% due 04/10/2040		1,180,000		1,132,829
Government National Mortgage Association,
Series 2006-3, Class A
4.212% due 01/16/2028		105,098		104,895
Government National Mortgage Association,
Series 2006-37, Class JG
5.00% due 07/20/2036		254,000		243,117
GSR Mortgage Loan Trust, Series 2006-8F, Class
3A5
6.25% due 09/25/2036		1,369,856		1,314,363
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2001-CIB3, Class A3
6.465% due 11/15/2035		876,000		894,400
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2006-CB15, Class ASB
5.79% due 06/12/2043 (b)		276,000		266,943
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2002-CIB5, Class A2
5.161% due 10/12/2037		149,000		145,875

 

Core Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2003-CB7, Class A4
4.879% due 01/12/2038 (b)	$	290,000	$	277,067
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2004-C3, Class A1
3.765% due 01/15/2042		381,714		378,895
JP Morgan Chase Commercial Mortgage Securities
Corp., Series 2005-LDP3, Class A1
4.655% due 08/15/2042		72,336		72,062
JP Morgan Commercial Mortgage Finance Corp.,
Series 2000-C10, Class A2
7.371% due 08/15/2032 (b)		274,419		280,996
LB-UBS Commercial Mortgage Trust, Series
2000-C5, Class A2
6.51% due 12/15/2026		478,255		488,466
LB-UBS Commercial Mortgage Trust,
Series 2001-C2, Class A2
6.653% due 11/15/2027		242,000		248,539
LB-UBS Commercial Mortgage Trust,
Series 2002-C2, Class A4
5.594% due 06/15/2031		651,000		648,732
LB-UBS Commercial Mortgage Trust,
Series 2003-C3, Class A4
4.166% due 05/15/2032		88,000		81,996
LB-UBS Commercial Mortgage Trust,
Series 2003-C5, Class A2
3.478% due 07/15/2027		98,386		98,175
Morgan Stanley Capital I, Series 2003-IQ5, Class A4
5.01% due 04/15/2038		503,000		488,114
Morgan Stanley Capital I,
Series 2004-HQ3, Class A4
4.80% due 01/13/2041		334,000		316,157
Morgan Stanley Capital I,
Series 2005-HQ5, Class AAB
5.037% due 01/14/2042		444,000		432,588
Morgan Stanley Capital I,
Series 2005-HQ7, Class AAB
5.3555% due 11/14/2042 (b)		950,000		926,894
Morgan Stanley Dean Witter Capital I, Series
2003-HQ2, Class A2
4.92% due 03/12/2035		652,000		628,731
Morgan Stanley Dean Witter Capital I,
Series 2001, Class A4
6.39% due 07/15/2033		518,292		527,543
Morgan Stanley Dean Witter Capital I,
Series 2001-TOP1, Class A4
6.66% due 02/15/2033		477,892		488,344
Morgan Stanley Dean Witter Capital I,
Series 2001-TOP5, Class A4
6.39% due 10/15/2035		1,006,000		1,024,129
Morgan Stanley Dean Witter Capital I,
Series 2002-IQ2, Class A3
5.52% due 12/15/2035		68,630		68,734
Morgan Stanley Mortgage Loan Trust,
Series 2007-6XS, Class 2A1S
2.5819% due 02/25/2047 (b)		146,013		139,854
Salomon Brothers Mortgage Securities VII, Series
2002-KEY2, Class A2
4.467% due 03/18/2036		316,431		308,028

 

The accompanying notes are an integral part of the financial statements.

100

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Core Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Salomon Brothers Mortgage Securities VII,
Series 2000-C3, Class A2
6.592% due 12/18/2033	$	129,611	$	132,044
Wachovia Bank Commercial Mortgage Trust,
Series 2006-C26, Class A3
6.011% due 06/15/2045 (b)		494,000		469,556
Wachovia Bank Commercial Mortgage Trust,
Series 2002-C1, Class A4
6.287% due 04/15/2034		347,000		352,914
Wachovia Bank Commercial Mortgage Trust,
Series 2002-C2, Class A4
4.98% due 11/15/2034		1,181,000		1,145,866
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C5, Class A2
3.989% due 06/15/2035		136,000		125,875
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C6, Class A3
4.957% due 08/15/2035		1,360,000		1,343,529
Wachovia Bank Commercial Mortgage Trust,
Series 2003-C8, Class A3
4.445% due 11/15/2035		197,000		194,004
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C10, Class A4
4.748% due 02/15/2041		755,000		705,864
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C11, Class A4
5.03% due 01/15/2041		379,000		368,321
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C18, Class A4
4.935% due 04/15/2042		105,000		97,838
Wachovia Bank Commercial Mortgage Trust,
Series 2006-C26, Class APB
5.997% due 06/15/2045		276,000		267,762
WaMu Mortgage Pass Through Certificates, Series
2006-AR12, Class 1A1
6.0683% due 10/25/2036 (b)		277,349		256,530
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $56,375,333)			$	56,016,782
ASSET BACKED SECURITIES - 11.97%
Citibank Credit Card Issuance Trust, Series
2006-A2, Class A2
4.85% due 02/10/2011		1,195,000		1,201,980
Americredit Prime Automobile Receivable,
Series 2007-1, Class A3
5.12% due 11/08/2011 (b)		537,000		538,711
BA Credit Card Trust, Series 2006-A9, Class A9
2.4769% due 02/15/2013 (b)		901,000		880,462
BA Credit Card Trust, Series 2008-A1, Class A1
3.0469% due 04/15/2013 (b)		859,000		848,270
Capital One Multi-Asset Execution Trust, Series
2005-A6, Class A6
2.8406% due 07/15/2015 (b)		377,000		346,375
Capital One Multi-Asset Execution Trust, Series
2006-A11, Class A11
2.5569% due 06/17/2019 (b)		1,709,000		1,463,697
Capital One Multi-Asset Execution Trust, Series
2006-A5, Class A5
2.8775% due 01/15/2016 (b)		433,000		395,167

 

Core Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES
(continued)
Capital One Multi-Asset Execution Trust, Series
2006-A7, Class A7
2.8475% due 03/17/2014 (b)	$	135,000	$	128,096
Capital One Multi-Asset Execution Trust, Series
2007-A4, Class A4
2.8475% due 03/16/2015 (b)		250,000		233,141
Capital One Multi-Asset Execution Trust, Series
2008-A3, Class A3
5.05% due 02/15/2016		3,884,000		3,734,078
Capital One Multi-Asset Execution Trust, Series
2008-A5, Class A5
4.85% due 02/18/2014		572,000		563,327
Capital One Multi-Asset Execution Trust,
Series 2007-A7, Class A7
5.75% due 07/15/2020		865,000		806,452
Citicorp Residential Mortgage Securities, Inc.,
Series 2006-1, Class A1
5.956% due 07/25/2036		43,177		43,071
Citicorp Residential Mortgage Securities, Inc.,
Series 2006-1, Class A2
5.682% due 07/25/2036		282,000		280,143
Citicorp Residential Mortgage Securities, Inc.,
Series 2006-2, Class A2
5.557% due 09/25/2036		308,000		305,561
Citigroup Mortgage Loan Trust, Inc.,
Series 2007-AHL1, Class A2A
2.5119% due 12/25/2036 (b)		211,102		195,185
Countrywide Asset-Backed Certificates,
Series 2006-S1, Class A2
5.549% due 08/25/2021		411,259		374,120
Daimler Chrysler Master Owner Trust, Series
2006-A, Class A
2.4969% due 11/15/2011 (b)		2,111,000		2,016,891
Discover Card Master Trust I, Series 2003-3, Class
A
2.6669% due 09/15/2012 (b)		269,000		261,980
Discover Card Master Trust I, Series 2006-2, Class
A2
2.4969% due 01/16/2014 (b)		940,000		888,470
Discover Card Master Trust I, Series 2006-2, Class
A3
2.5469% due 01/19/2016 (b)		388,000		350,451
Discover Card Master Trust, Series 2007-A2, Class
A2
3.1162% due 06/15/2015 (b)		650,000		602,600
Discover Card Master Trust, Series 2008-A3, Class
A3
5.10% due 10/15/2013		1,177,000		1,165,223
Discover Card Master Trust, Series 2008-A4, Class
A4
5.65% due 12/15/2015		2,259,000		2,207,842
Discover Card Master Trust,
Series 2007-A1, Class A1
5.65% due 03/16/2020		882,000		823,576
Dominos Pizza Master Issuer LLC,
Series 2007-1, Class A2
5.261% due 04/25/2037 (h)		480,000		402,353
Ford Credit Floorplan Master Owner Trust, Series
2006-4, Class A
2.7169% due 06/15/2013 (b)		783,000		683,307

 

The accompanying notes are an integral part of the financial statements.

101

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Core Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES
(continued)
Great America Leasing Receivables,
Series 2006-1, Class A3
5.34% due 01/15/2010 (h)	$	285,284	$	286,830
Harley-Davidson Motorcycle Trust, Series 2007-2,
Class A4
5.12% due 08/15/2013		284,000		282,831
Harley-Davidson Motorcycle Trust,
Series 2008-1, Class A3A
4.25% due 02/15/2013		361,000		355,815
Honda Auto Receivables Owner Trust, Series
2008-1, Class A4
4.88% due 09/18/2014		542,000		536,723
Huntington Auto Trust, Series 2008-1A, Class A3A
4.81% due 04/16/2012		1,129,000		1,110,750
Huntington Auto Trust, Series 2008-1A, Class A4
5.64% due 02/15/2013		1,156,000		1,161,048
Hyundai Auto Receivables Trust, Series 2008-A,
Class A4
5.48% due 11/17/2014		237,000		234,753
Morgan Stanley ABS Capital I,
Series 2007-HE2, Class A2A
2.5119% due 01/25/2037 (b)		132,374		123,804
Morgan Stanley Home Equity Loans,
Series 2007-1, Class A1
2.5219% due 12/25/2036 (b)		118,571		111,659
Nissan Auto Receivables Owner Trust,
Series 2007-B, Class A4
5.16% due 03/17/2014		248,000		247,767
Ownit Mortgage Loan Asset-Backed
Certificates, Series 2006-1, Class AF1
5.424% due 12/25/2036 (b)		20,360		20,129
SLM Student Loan Trust, Series 2005-6, Class A5B
2.93% due 07/27/2026 (b)		1,222,000		1,208,182
SLM Student Loan Trust, Series 2008-4, Class A4
4.45% due 01/24/2017 (b)		236,000		233,935
SLM Student Loan Trust, Series 2008-6, Class A4
3.4231% due 07/25/2023 (b)		1,285,000		1,249,462
SLM Student Loan Trust, Series 2008-8, Class A4
4.3006% due 04/25/2023 (b)		1,477,000		1,439,613
Swift Master Auto Receivables Trust, Series
2007-1, Class A
2.5669% due 06/15/2012 (b)		210,000		191,020
Triad Auto Receivables Owner Trust,
Series 2006-B, Class A3
5.41% due 08/12/2011		675,405		670,115
Triad Auto Receivables Owner Trust,
Series 2006-C, Class A3
5.26% due 11/14/2011		378,361		372,346
Volkswagen Auto Loan Enhanced Trust, Series
2008-1, Class A3
4.50% due 07/20/2012		412,000		410,700
Washington Mutual Master Note Trust, Series
2007-A2, Class A2
2.4969% due 05/15/2014 (b)		167,000		153,506
Washington Mutual Master Note
Trust, Series 2006-A2A, Class A
2.5169% due 06/15/2015 (b)(h)		462,000		408,666

 

Core Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES
(continued)
WFS Financial Owner Trust,
Series 2005-3, Class A3A
4.25% due 06/17/2010	$	640	$	641
TOTAL ASSET BACKED SECURITIES
(Cost $33,280,817)			$	32,550,824
REPURCHASE AGREEMENTS - 0.35%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $959,181 on 09/02/2008, collateralized by $970,000 Federal National Mortgage Association, 3.2% due 05/06/2010 (valued at $978,342, including interest)	$	959,000	$	959,000
TOTAL REPURCHASE AGREEMENTS
(Cost $959,000)			$	959,000
SHORT TERM INVESTMENTS - 5.74%
Bank of America Corp.
2.02% due 09/02/2008	$	4,043,000	$	4,042,773
Deutsche Bank Financial LLC
2.00% due 09/02/2008		4,043,000		4,042,775
Rabobank USA Financial Corp.
2.00% due 09/02/2008		4,043,000		4,042,775
UBS Finance Delaware LLC
1.98% due 09/02/2008		3,483,000		3,482,809
TOTAL SHORT TERM INVESTMENTS
(Cost $15,611,132)			$	15,611,132
Total Investments (Core Bond Fund) (Cost $311,464,359) - 114.12%			$	310,239,622
Liabilities in Excess of Other Assets - (14.12)%				(38,391,449	)
TOTAL NET ASSETS - 100.00%			$	271,848,173

 

Core Equity Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.07%
Banking - 1.74%
Bank of America Corp.		399,722	$	12,447,343
Biotechnology - 3.43%
Amgen, Inc. *		389,125		24,456,506
Cable & Television - 3.90%
Time Warner, Inc.		1,699,800		27,825,726
Computers & Business Equipment - 10.62%
Cisco Systems, Inc. *		854,900		20,560,345
Hewlett-Packard Company		624,800		29,315,616
International Business Machines Corp.		212,900		25,916,317
				75,792,278
Electrical Utilities - 7.12%
AES Corp. *		3,329,200		50,803,592

 

The accompanying notes are an integral part of the financial statements.

102

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Core Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services - 15.24%
Capital One Financial Corp.		369,400	$	16,305,316
Citigroup, Inc.		1,655,620		31,440,224
Federal Home Loan Mortgage Corp.		1,349,300		6,085,343
Goldman Sachs Group, Inc.		37,200		6,099,684
JP Morgan Chase & Company		859,900		33,097,551
Merrill Lynch & Company, Inc.		521,600		14,787,360
NYSE Euronext		23,400		949,806
				108,765,284
Healthcare Services - 4.99%
UnitedHealth Group, Inc.		1,168,300		35,574,735
Holdings Companies/Conglomerates - 4.20%
General Electric Company		1,065,300		29,934,930
Insurance - 8.79%
Aetna, Inc.		1,007,200		43,450,608
American International Group, Inc.		895,950		19,253,966
				62,704,574
Internet Content - 7.28%
Google, Inc., Class A *		60,300		27,936,387
Yahoo!, Inc. *		1,240,800		24,046,704
				51,983,091
Internet Retail - 11.84%
Amazon.com, Inc. *		651,600		52,655,796
eBay, Inc. *		1,276,100		31,813,173
				84,468,969
Leisure Time - 2.71%
Electronic Arts, Inc. *		396,000		19,328,760
Photography - 3.63%
Eastman Kodak Company		1,601,748		25,932,300
Retail Trade - 6.15%
J.C. Penney Company, Inc.		339,100		13,214,727
Sears Holdings Corp. *		333,700		30,683,715
				43,898,442
Semiconductors - 2.03%
Texas Instruments, Inc.		590,300		14,468,253
Software - 2.53%
CA, Inc.		755,200	��	18,056,832
Steel - 0.63%
Nucor Corp.		85,700		4,499,250
Telephone - 0.24%
Qwest Communications International, Inc.		451,153		1,705,358
TOTAL COMMON STOCKS (Cost $844,457,393)			$	692,646,223

 

Core Equity Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 3.09%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $22,065,167 on 09/02/2008, collateralized by $22,035,000 Federal Home Loan Bank, 5.00% due 10/16/2009 (valued at $22,503,244, including interest)	$	22,061,000	$	22,061,000
TOTAL REPURCHASE AGREEMENTS
(Cost $22,061,000)			$	22,061,000
Total Investments (Core Equity Fund) (Cost $866,518,393) - 100.16%			$	714,707,223
Liabilities in Excess of Other Assets - (0.16)%				(1,122,872	)
TOTAL NET ASSETS - 100.00%			$	713,584,351

 

Emerging Growth Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 95.19%
Aerospace - 3.71%
AAR Corp. *		96,200	$	1,526,694
Aerovironment, Inc. *		99,725		3,336,799
				4,863,493
Banking - 3.36%
IBERIABANK Corp.		32,155		1,743,766
PrivateBancorp, Inc. (a)		54,133		1,658,635
Signature Bank *		33,512		990,950
				4,393,351
Biotechnology - 2.35%
AMAG Pharmaceuticals, Inc. *		48,850		1,890,006
Exelixis, Inc. *		209,704		1,193,216
				3,083,222
Business Services - 8.96%
Acacia Research - Acacia Technologies *		133,109		531,105
Constant Contact, Inc. * (a)		124,633		2,131,224
Euronet Worldwide, Inc. *		78,299		1,471,238
FTI Consulting, Inc. *		36,834		2,703,615
Hill International, Inc. *		122,987		2,367,500
Kendle International, Inc. *		21,100		1,043,395
Tyler Technologies, Inc. *		91,189		1,478,174
				11,726,251
Commercial Services - 2.46%
Providence Service Corp. *		114,596		1,467,975
Team, Inc. *		46,000		1,753,060
				3,221,035
Computers & Business Equipment - 1.04%
Synaptics, Inc. *		25,983		1,359,950
Drugs & Health Care - 2.43%
BioMarin Pharmaceutical, Inc. *		48,800		1,470,832
Matrixx Initiatives, Inc. *		96,509		1,710,140
				3,180,972

 

The accompanying notes are an integral part of the financial statements.

103

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Growth Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electronics - 1.93%
Enersys *		50,700	$	1,425,684
Medis Technologies, Ltd. * (a)		351,600		1,100,508
				2,526,192
Energy - 3.53%
InterOil Corp. * (a)		148,988		4,623,096
Financial Services - 2.71%
FCStone Group, Inc. * (a)		81,374		1,701,530
Portfolio Recovery Associates, Inc. * (a)		43,363		1,844,662
				3,546,192
Food & Beverages - 2.09%
Green Mountain Coffee Roasters, Inc. *		39,200		1,430,408
Smart Balance, Inc. *		204,046		1,305,894
				2,736,302
Healthcare Products - 13.44%
Align Technology, Inc. *		159,938		2,085,592
Caliper Life Sciences, Inc. *		184,082		550,405
Conceptus, Inc. * (a)		67,000		1,132,300
Micrus Endovascular Corp. *		90,681		1,142,581
Nuvasive, Inc. *		50,128		2,389,101
ResMed, Inc. *		61,110		2,859,948
RTI Biologics, Inc. *		129,787		1,217,402
SenoRx, Inc. *		120,089		728,940
Somanetics Corp. *		77,069		1,911,311
SonoSite, Inc. * (a)		66,224		2,238,371
Spectranetics Corp. *		167,479		1,346,531
				17,602,482
Healthcare Services - 1.38%
Healthextras, Inc. *		30,631		998,571
Phase Forward, Inc. *		41,500		801,780
				1,800,351
Industrial Machinery - 1.31%
Flow International Corp. *		252,952		1,717,544
Industrials - 1.06%
EnergySolutions, Inc.		75,050		1,386,174
Insurance - 2.35%
Infinity Property & Casualty Corp.		33,775		1,570,537
ProAssurance Corp. *		28,053		1,512,057
				3,082,594
Leisure Time - 4.98%
Bally Technologies, Inc. *		53,649		1,836,405
Imax Corp. *		471,696		3,410,362
Pinnacle Entertainment, Inc. *		87,711		972,715
Progressive Gaming International Corp. *		390,050		296,438
				6,515,920
Life Sciences - 1.58%
Sequenom, Inc. *		91,180		2,072,521
Manufacturing - 3.97%
Force Protection, Inc. * (a)		600,912		2,391,630
iRobot Corp. * (a)		200,797		2,809,150
				5,200,780

 

Emerging Growth Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Medical-Hospitals - 1.10%
Electro-Optical Sciences, Inc. *		194,869	$	1,445,928
Metal & Metal Products - 1.29%
Fushi Copperweld, Inc. *		41,100		463,608
Haynes International, Inc. *		21,028		1,229,297
				1,692,905
Petroleum Services - 1.43%
Superior Energy Services, Inc. *		39,670		1,866,077
Pharmaceuticals - 2.74%
BioForm Medical, Inc. *		207,411		825,496
Inspire Pharmaceuticals, Inc. *		264,809		1,191,640
Onyx Pharmaceuticals, Inc. *		38,500		1,573,495
				3,590,631
Publishing - 1.62%
VistaPrint, Ltd. * (a)		63,978		2,126,629
Retail Trade - 1.44%
Hibbett Sports, Inc. * (a)		78,752		1,882,173
Semiconductors - 7.46%
FormFactor, Inc. *		87,793		1,684,747
Mattson Technology, Inc. *		304,329		1,552,078
Netlogic Microsystems, Inc. * (a)		63,982		2,222,095
Rubicon Technology, Inc. *		53,741		656,715
Tessera Technologies, Inc. *		93,325		2,171,673
Varian Semiconductor Equipment Associates, Inc. *		46,039		1,487,060
				9,774,368
Software - 8.89%
Allscripts Healthcare Solution, Inc. * (a)		121,955		1,748,835
Concur Technologies, Inc. *		65,852		2,894,195
FARO Technologies, Inc. *		71,530		1,689,538
Magma Design Automation, Inc. *		62,534		317,673
Monotype Imaging Holdings, Inc. *		103,169		1,293,739
NetSuite, Inc. * (a)		49,500		832,590
Progress Software Corp. *		54,784		1,600,241
Ultimate Software Group, Inc. *		45,000		1,261,800
				11,638,611
Telecommunications Equipment &
Services - 1.81%
Comtech Telecommunications Corp. *		51,699		2,363,678
Trucking & Freight - 2.77%
ID Systems, Inc. * (a)		220,141		1,979,067
Landstar Systems, Inc.		33,530		1,643,641
				3,622,708
TOTAL COMMON STOCKS (Cost $133,729,241)			$	124,642,130
WARRANTS - 0.09%
Medical-Hospitals - 0.09%
Electro-Optical Sciences, Inc. (Expiration Date: 10/31/2011, Strike Price: $6.70) *		5,396		13,350

 

The accompanying notes are an integral part of the financial statements.

104

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Growth Fund (continued)
	Shares or Principal Amount		Value
WARRANTS (continued)
Medical-Hospitals (continued)
Electro-Optical Sciences, Inc. (continued) (Expiration Date: 08/03/2012, Strike Price: $8.00) *		45,653	$	109,288
				122,638
TOTAL WARRANTS (Cost $0)			$	122,638
CONVERTIBLE BONDS - 0.97%
Energy - 0.97%
InterOil Corp.
8.00% due 05/09/2013 (h)		1,025,000		1,272,230
TOTAL CONVERTIBLE BONDS (Cost $1,025,000)			$	1,272,230
SHORT TERM INVESTMENTS - 23.46%
Federal Home Loan Bank Discount Notes zero coupon due 09/02/2008	$	3,800,000	$	3,799,794
John Hancock Cash Investment Trust, 2.5657% (c)(i)		26,914,113		26,914,113
TOTAL SHORT TERM INVESTMENTS
(Cost $30,713,907)			$	30,713,907
Total Investments (Emerging Growth Fund) (Cost $165,468,148) - 119.71%			$	156,750,905
Liabilities in Excess of Other Assets - (19.71)%				(25,808,617	)
TOTAL NET ASSETS - 100.00%			$	130,942,288

 

Emerging Markets Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 93.68%
Brazil - 7.30%
Aracruz Celulose SA, SADR		26,821	$	1,482,933
Banco Alfa de Investimento SA *		3,300		15,427
Banco Bradesco SA, ADR		178,900		3,293,549
Banco Bradesco SA		125,000		2,053,681
Bematech SA *		21,900		96,736
BR Malls Participacoes SA *		26,000		231,288
Brascan Residential Properties SA		25,900		103,282
Braskem SA, SADR		119,002		1,738,619
Cia Brasileira de Distribuicao Grupo Pao de Acucar, ADR *		15,900		662,553
Cia Hering *		14,900		80,442
Company SA		10,049		65,904
Empresa Brasileira de Aeronautica SA, ADR		700		23,765
Eternit SA		30,000		124,233
Gafisa SA		56,500		809,025
Gerdau SA, SADR		682,778		12,774,776
Grendene SA		27,400		257,190
Guararapes Confeccoes SA		4,400		86,380
Iguatemi Empresa de Shopping Centers SA		7,700		89,755
JBS SA		162,400		660,560
M Dias Branco SA		33,200		423,657
Medial Saude SA		8,100		60,874
Net Servicos de Comunicacao SA, PR ADR *		84,404		972,334

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Brazil (continued)
PDG Realty SA Empreendimentos e
Participacoes		39,900	$	480,514
Perdigao SA, SADR *		55,763		2,808,782
Porto Seguro SA *		46,000		475,239
Rossi Residencial SA		22,000		134,969
Sadia SA, SADR		152,429		3,039,434
Sao Carlos Empreendimentos e Participacoes SA		15,900		129,639
Sao Martinho SA *		29,400		468,957
Ultrapar Participacoes SA, ADR		44,294		1,572,880
Unibanco - Uniao de Bancos Brasileiros SA *		113,300		1,342,223
Unibanco - Uniao De Bancos Brasileiros SA, ADR *		20,900		2,498,804
Usinas Siderurgicas de Minas Gerais SA		26,700		918,939
Votorantim Celulose e Papel SA, SADR *		102,450		2,163,744
				42,141,087
Chile - 2.97%
Cementos Bio Bio SA		2,795		5,587
Cia General de Electricidad		53,123		310,605
Cintac SA		78,352		38,966
Companhia de Consumidores de Gas de Santiago SA		6,504		26,003
Companhia Sudamericana de Vapores SA		502,052		675,604
Compania de Telecomunicaciones de Chile SA, SADR		214,262		1,189,154
Corpbanca SA, SADR		4,614		123,471
Cristalerias de Chile SA		7,774		69,742
Empresas CMPC SA		53,640		1,663,337
Empresas Copec SA		337,656		4,142,089
Empresas Iansa SA		439,146		16,701
Enersis SA, SADR		459,633		7,878,110
Industrias Forestales SA		77,846		16,700
Madeco SA, SADR		41,779		380,607
Masisa SA		2,957,145		478,737
Soquimich Comercial SA		129,645		73,072
Vina San Pedro SA		9,342,203		67,413
				17,155,898
China - 4.13%
Angang New Steel Company, Ltd. Class H		622,000		841,923
AviChina Industry & Technology Company, Ltd. *		824,000		137,394
Bank of China, Ltd.		14,925,000		6,415,518
Beijing Capital International Airport Company, Ltd., Class H		838,000		659,209
BYD Company, Ltd., H Shares		551,000		631,921
Chaoda Modern Agriculture Holdings, Ltd.		1,768,900		1,878,543
China Construction Bank		726,000		588,410
China Petroleum & Chemical Corp., SADR		9,100		885,339
China Shipping Container Lines Company, Ltd.		1,447,850		353,446
China Travel International Investment Hong Kong, Ltd.		2,864,000		624,730
Dongfeng Motor Group Company, Ltd.		2,780,000		1,173,851
Guangshen Railway Company, Ltd., Class H		110,000		49,435
Guangshen Railway Company, Ltd., SADR		25,600		573,440
Hunan Non Ferrous Metal Corp., Ltd.		1,656,000		279,662
Industrial & Commercial Bank of China, Ltd.		832,000		569,681

 

The accompanying notes are an integral part of the financial statements.

105

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
China (continued)
Maanshan Iron & Steel Company, Ltd.		1,682,000	$	752,690
PetroChina Company, Ltd., SADR		19,800		2,558,160
PICC Property & Casualty Company, Ltd., Class H		2,246,000		1,268,115
Qingling Motors Company, Ltd.		580,000		91,088
Semiconductor Manufacturing International Corp., SADR *		209,323		496,096
Semiconductor Manufacturing
International Corp. *		6,395,000		298,607
Shanghai Electric Group Company, Ltd. *		2,739,000		1,127,674
Sinopec Shanghai Petrochemical Company, Ltd., SADR		22,600		707,380
Sinopec Yizheng Chemical Fibre Company, Ltd. *		1,404,000		158,278
Sinotrans, Ltd., Class H		1,330,000		300,428
ZTE Corp., Class H		85,400		405,087
				23,826,105
Czech Republic - 0.81%
Telefonica Czech Republic AS		107,949		3,310,791
Unipetrol AS		111,126		1,353,293
				4,664,084
Hong Kong - 5.68%
Amvig Holdings, Ltd.		432,000		386,641
Baoye Group Company, Ltd.		110,000		36,645
Beijing Capital Land, Ltd.		424,000		83,744
Beijing Enterprises Holdings, Ltd.		442,000		1,640,675
Brilliance China Automotive Holdings, Ltd. *		2,276,000		234,684
Catic Shenzhen Holdings, Ltd.		140,000		68,988
China Aerospace International Holdings, Ltd. *		1,053,400		91,781
China Everbright, Ltd.		699,000		1,254,951
China Green Holdings, Ltd.		216,000		191,116
China Haidian Holdings, Ltd. *		726,000		32,396
China Pharmaceutical Group, Ltd.		794,000		261,121
China Rare Earth Holdings, Ltd.		722,000		110,374
China Resources Enterprises, Ltd.		778,000		2,105,432
China Shineway Pharmaceutical Group, Ltd.		142,000		101,120
China Unicom, Ltd., SADR		355,300		5,642,164
China Unicom, Ltd.		234,000		370,188
Chongqing Iron & Steel Company, Ltd.		306,000		92,298
Citic Pacific, Ltd.		1,011,923		3,510,661
CNPC Hong Kong, Ltd.		2,440,000		935,367
COFCO International, Ltd.		866,000		343,115
Comba Telecom Systems Holdings, Ltd.		254,000		63,969
Cosco International Holdings, Ltd.		650,000		233,574
Cosco Pacific, Ltd.		1,090,000		1,657,998
Dalian Port PDA Company, Ltd.		822,000		449,551
Denway Motors, Ltd.		4,758,000		1,695,162
Digital China Holdings, Ltd.		103,000		52,208
Dynasty Fine Wines Group, Ltd.		654,000		89,199
First Tractor Company, Ltd.		236,000		43,421
Fu Ji Food & Catering Services Holdings, Ltd.		233,000		266,512
Geely Automobile Holdings Company, Ltd.		2,210,000		194,412
Global Bio-Chem Technology
Group Company, Ltd.		1,406,000		533,948
Great Wall Motor Company, Ltd.		211,000		99,549
Great Wall Technology Company, Ltd. *		142,000		18,778

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Guangzhou Pharmaceutical Company, Ltd.		46,000	$	22,816
Hainan Meilan International Airport Company, Ltd.		104,000		81,743
Harbin Power Equipment Company, Ltd.		678,000		835,305
HKC Holdings, Ltd.		3,572,000		599,803
Hopson Development Holdings, Ltd., GDR		596,000		590,764
Innomaxx Biotechnology Group, Ltd. *		1,658,000		91,871
Jingwei Textile Machinery Company, Ltd.		62,000		8,685
Kingway Brewery Holdings, Ltd. *		522,000		53,031
Lianhua Supermarket Holdings, Ltd.		101,000		172,769
Lingbao Gold Company, Ltd.		134,000		37,860
Minmetals Resources, Ltd.		900,000		215,350
Neo-China Group Holdings, Ltd.		341,500		111,578
Nine Dragons Paper Holdings, Ltd.		1,261,000		772,080
Shanghai Industrial Holdings, Ltd.		520,000		1,403,497
Shanghai Prime Machinery Company, Ltd.		406,000		67,658
Shanghai Real Estate, Ltd.		1,132,000		107,923
Shenzhen International Holdings, Ltd.		6,267,500		493,916
Shenzhen Investment, Ltd.		1,778,000		472,512
Shenzhou International Group Holdings, Ltd.		274,000		58,278
Shimao Property Holdings, Ltd., GDR		1,450,000		1,623,019
SinoCom Software Group, Ltd.		17,000		1,996
Sinolink Worldwide Holdings, Ltd.		1,362,000		182,315
Sinopec Kantons Holdings, Ltd.		620,000		90,085
Skyworth Digital Holdings, Ltd.		1,230,000		132,841
Stone Group Holdings, Ltd. *		750,000		36,322
TCL Communication Technology
Holdings, Ltd. *		2,756,000		52,702
TCL Multimedia Technology Holdings, Ltd. *		1,746,000		47,662
Tianjin Capital Environmental Protection		104,000		19,026
TPV Technology, Ltd.		1,188,000		575,439
Travelsky Technology, Ltd., Class H		440,000		267,252
Weiqiao Textile Company, Ltd.		430,500		341,248
Xiamen International Port Company, Ltd.		510,000		89,515
Xiwang Sugar Holdings Company, Ltd.		440,000		132,274
Zhejiang Glass Company, Ltd. *		172,000		85,068
				32,765,945
Hungary - 3.18%
Danubius Hotel and Spa PLC *		518		19,208
Egis Gyogyszergyar Nyrt.		3,828		312,632
Fotex PLC *		65,740		243,524
Gedeon Richter Rt.		12,527		2,482,504
MOL Magyar Olaj & Gazipari Rt.		72,209		7,757,036
OTP Bank Rt. *		163,213		7,319,819
Pannonplast PLC *		16,510		123,343
Raba Jarmuipari Holding Nyilvanosan Mukodo Rt. *		11,794		103,903
Synergon Information Systems, Ltd. *		2,700		13,672
				18,375,641
India - 9.67%
ACC, Ltd.		10,735		136,773
Aditya Birla Nuvo, Ltd.		15,200		445,881
Ador Welding, Ltd.		8,367		24,334
Aftek, Ltd.		28,741		25,496
Alembic, Ltd.		38,000		35,892
Allahabad Bank		38,840		55,042

 

The accompanying notes are an integral part of the financial statements.

106

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
India (continued)
Alok Industries, Ltd.		72,774	$	66,784
Ambuja Cements, Ltd.		604,511		1,101,881
Amtek Auto, Ltd.		40,948		165,664
Ansal Properties & Infrastructure, Ltd.		9,294		21,180
Apollo Hospitals Enterprise, Ltd.		17,400		191,177
Apollo Tyres, Ltd.		154,850		137,272
Arvind Mills, Ltd. *		104,142		80,869
Ashapura Minechem, Ltd.		5,400		14,226
Ashok Leyland, Ltd.		432,251		329,257
Aurobindo Pharma, Ltd.		20,097		144,620
Avaya Global Connect, Ltd.		5,668		17,181
Axis Bank, Ltd.		116,219		1,892,620
Bajaj Auto Finance, Ltd.		11,946		36,931
Bajaj Auto, Ltd.		24,676		330,249
Bajaj Finserv, Ltd.		24,676		301,633
Bajaj Hindusthan, Ltd.		38,278		147,725
Balaji Telefilms, Ltd.		11,528		44,031
Ballarpur Industries, Ltd.		218,226		164,097
Balmer Lawrie & Company, Ltd.		1,500		13,206
Balrampur Chini Mills, Ltd. *		78,680		164,990
Bank of Maharashtra		130,888		102,704
Bank of Rajasthan		39,971		71,833
Bata India, Ltd.		25,249		95,119
Bharat Earth Movers, Ltd.		13,744		228,470
Bharat Forge, Ltd.		6,300		38,044
Bhushan Steel, Ltd.		16,585		313,905
Biocon, Ltd.		16,986		150,062
Birla Corp., Ltd.		22,168		81,495
Bombay Dyeing & Manufacturing Company, Ltd.		6,668		81,880
Cadila Healthcare, Ltd.		6,700		48,516
Cairn India, Ltd. *		169,481		948,593
Chambal Fertilizers & Chemicals, Ltd.		122,930		201,228
Chi Investments, Ltd. *		6,513		4,684
Cholamandalam DBS Finance, Ltd.		7,563		17,231
City Union Bank, Ltd.		58,500		35,628
CMC, Ltd.		1,800		23,565
Coromandel Fertilisers, Ltd.		12,000		48,728
Cranes Software International, Ltd. *		3,000		8,436
Dalmia Cement Bharat, Ltd.		6,800		33,602
DCM Shriram Consolidated, Ltd.		26,804		36,173
Deepak Fertilizers & Petrochemicals Corp., Ltd.		34,858		71,887
Dr. Reddy’s Laboratories, Ltd., ADR		133,510		1,823,747
Eicher Motors, Ltd.		8,302		54,056
EID Parry India, Ltd.		18,099		92,476
EIH, Ltd.		108,400		359,753
Elder Pharmaceuticals, Ltd.		3,200		24,271
Electrosteel Castings, Ltd.		47,000		33,918
Escorts, Ltd. *		36,222		66,160
Essel Propack, Ltd.		6,500		3,617
Eveready Industries, Ltd. *		21,000		18,970
FDC, Ltd.		31,000		23,322
Federal Bank, Ltd.		67,848		329,273
Finolex Cables, Ltd.		27,100		31,013
Finolex Industries, Ltd.		62,340		77,299
Gammon India, Ltd.		28,239		139,741

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
India (continued)
Gitanjali Gems, Ltd. *		20,683	$	113,128
Graphite India, Ltd.		75,397		100,356
Great Eastern Shipping Company, Ltd.		51,772		449,864
GTL, Ltd.		48,244		220,216
Gujarat Alkalies & Chemicals, Ltd.		35,989		132,564
Gujarat Ambuja Exports, Ltd.		15,000		13,048
Gujarat Flourochemicals, Ltd.		7,763		35,994
Gujarat Narmada Valley Fertilizers Company, Ltd.		51,735		136,567
Gujarat State Fertilisers & Chemicals, Ltd.		17,219		65,406
HCL Infosystems, Ltd.		63,711		169,933
HEG, Ltd.		13,300		71,890
Hexaware Technologies, Ltd.		38,931		41,185
Himatsingka Seide, Ltd. *		4,000		4,548
Hinduja TMT, Ltd.		5,652		25,757
Hindustan Construction Company, Ltd.		60,588		129,795
Hindustan Motors, Ltd. *		62,438		34,472
Hotel Leela Venture, Ltd.		112,844		82,118
ICI India, Ltd.		4,700		53,604
ICICI Bank, Ltd., SADR		287,841		8,928,828
India Cements, Ltd.		65,673		206,236
India Glycols, Ltd.		14,305		66,552
Indian Hotels Company, Ltd.		353,108		615,341
Indian Overseas Bank		11,000		22,242
IndusInd Bank, Ltd. *		88,148		119,180
Industrial Development Bank of India, Ltd.		234,735		441,152
Infomedia India, Ltd. *		7,700		24,533
Infrastructure Development Finance Company, Ltd.		283,884		588,736
Ipca Laboratories, Ltd.		4,298		56,362
IVRCL Infrastructures & Projects, Ltd. *		10,893		74,794
Jammu & Kashmir Bank, Ltd.		14,831		167,699
JB Chemicals & Pharmaceuticals, Ltd.		21,800		21,648
JBF Industries, Ltd. *		33,159		65,483
Jet Airways India, Ltd.		16,718		177,601
Jindal Saw, Ltd.		13,753		180,817
Jindal Stainless, Ltd.		44,557		123,680
JK Tyre & Industries, Ltd.		10,900		21,654
JSW Steel, Ltd.		51,671		892,410
Jyoti Structures, Ltd.		10,126		29,498
Karnataka Bank, Ltd.		37,698		119,013
Karur Vysya Bank, Ltd.		21,841		169,245
Kesoram Industries, Ltd.		9,260		55,855
Kirloskar Oil Engines, Ltd.		57,456		118,318
Lakshmi Machine Works, Ltd.		1,969		47,922
LIC Housing Finance, Ltd.		34,065		251,533
Maharashtra Seamless, Ltd.		6,980		45,351
Mahindra & Mahindra, Ltd.		195,127		2,540,800
Mahindra Lifespace Developers, Ltd.		4,263		45,241
Mangalam Cement, Ltd.		14,461		29,522
Maruti Udyog, Ltd.		65,711		957,832
Mastek, Ltd.		11,271		93,161
Matrix Laboratories, Ltd. *		58,149		209,313
Mercator Lines, Ltd.		105,166		189,706
Monnet Ispat & Energy, Ltd.		17,433		201,608
Monsanto India, Ltd.		700		26,175
Moser Baer India, Ltd.		70,858		163,761

 

The accompanying notes are an integral part of the financial statements.

107

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
India (continued)
MRF, Ltd.		680	$	54,329
Mukand, Ltd.		28,732		51,954
Nagarjuna Construction Company, Ltd.		69,234		194,170
Nagarjuna Fertilizers & Chemicals, Ltd. *		229,114		196,379
Nahar Spinning Mills, Ltd.		6,600		6,288
Natco Pharma, Ltd.		7,500		13,112
National Organic Chemical Industries, Ltd.		80,241		44,220
Navneet Publications India, Ltd.		46,585		70,665
NIIT Technologies, Ltd.		18,577		48,198
Nirma, Ltd. *		20,100		60,494
OCL India, Ltd. *		1,500		3,365
Orchid Chemicals & Pharmaceuticals, Ltd. *		28,645		159,594
Orient Paper & Industries, Ltd.		51,770		40,762
Oriental Bank of Commerce		23,527		87,592
Patni Computer Systems, Ltd.		38,484		199,612
Petronet LNG, Ltd.		240,816		323,906
Pfizer, Ltd.		3,850		50,705
Polaris Software Lab, Ltd.		39,735		90,898
Prism Cement, Ltd.		45,201		35,688
PSL, Ltd.		6,900		49,172
PTC India, Ltd.		68,932		121,557
Punj Lloyd, Ltd.		24,798		168,470
Punjab Tractors, Ltd.		18,068		74,533
Raymond, Ltd.		13,679		59,711
Rei Agro, Ltd. *		3,463		109,408
Reliance Industries, Inc.		6,070		292,012
Reliance Industries, Ltd., GDR (h)		121,038		11,655,959
Rolta India, Ltd.		58,756		434,932
Ruchi Soya Industries, Ltd.		67,815		118,773
Sakthi Sugars, Ltd.		25,066		60,918
Seamec, Ltd. *		14,000		36,302
Shasun Chemicals & Drugs, Ltd.		16,408		12,131
Shriram Transport Finance Company, Ltd.		51,252		394,641
Sicagen India, Ltd. *		4,881		1,439
Sical Logistics, Ltd. *		4,881		9,668
SKF India, Ltd.		4,700		24,815
Sonata Software, Ltd.		23,000		14,766
South Indian Bank, Ltd.		37,494		94,966
SREI Infrastructure Finance, Ltd. *		24,771		61,391
SRF, Ltd.		37,385		112,428
State Bank Of India		36,320		1,151,268
Sterlite Optical Technologies, Ltd.		20,008		82,634
Strides Arcolab, Ltd. *		13,608		59,480
Syndicate Bank, Ltd.		189,537		253,420
Tata Chemicals, Ltd.		71,422		533,751
Tata Communications, Ltd., ADR		41,383		770,138
Tata Investment Corp., Ltd.		6,928		74,085
Tata Metaliks, Ltd.		7,900		24,917
Tata Motors, Ltd., SADR		64,300		633,998
Tata Motors, Ltd.		157,232		1,572,405
Tata Steel, Ltd.		99,160		1,340,512
Tata Tea, Ltd.		10,618		170,661
Tele Data Informatics, Ltd.		47,214		15,152
Teledata Marine Solutions *		23,607		18,403
Teledata Technology Solutions *		23,607		18,403
Torrent Pharmaceuticals, Ltd.		11,441		50,526

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
India (continued)
Tube Investments of India, Ltd.		59,975	$	63,900
TVS Motor Company, Ltd.		63,451		46,421
Unichem Laboratories, Ltd.		6,400		28,996
United Phosphorus, Ltd. *		66,463		504,691
Usha Martin, Ltd.		106,610		186,288
Uttam Galva Steels, Ltd. *		56,948		51,424
Varun Shipping Company, Ltd.		62,246		94,224
Vimta Labs, Ltd.		13,038		13,648
Wockhardt, Ltd.		24,300		109,847
Zee Entertainment Enterprises, Ltd.		89,462		439,182
Zensar Technologies, Ltd.		12,328		38,446
Zuari Industries, Ltd.		3,500		24,926
				55,789,326
Indonesia - 3.41%
Apexindo Pratama Duta Tbk PT		1,507,500		356,982
Astra Graphia Tbk PT		606,500		27,308
Astra International Tbk PT		2,452,500		5,522,972
Bakrie & Brothers Tbk PT *		5,064,750		189,966
Bakrieland Development Tbk PT *		11,972,500		452,549
Bank Central Asia Tbk PT		6,110,000		2,100,623
Bank Danamon Indonesia Tbk PT		2,231,000		1,304,744
Bank Niaga Tbk PT		4,865,500		468,742
Bank Pan Indonesia Tbk PT *		11,315,500		1,139,510
Bank Rakyat Indonesia Tbk PT		810,000		512,518
Berlian Laju Tanker Tbk PT		2,652,000		507,103
Bhakti Investama Tbk PT		3,342,825		144,928
Budi Acid Jaya Tbk PT		2,039,000		64,197
Charoen Pokphand Indonesia Tbk PT *		2,106,000		205,603
Ciputra Surya Tbk PT *		971,000		49,380
Davomas Abadi Tbk PT *		8,435,500		160,820
Enseval Putera Megatrading Tbk PT		1,104,500		59,483
Global Mediacom Tbk PT		2,520,000		105,246
Gudang Garam Tbk PT		400,500		281,132
Holcim Indonesia Tbk PT *		1,168,500		145,847
Indocement Tunggal Prakarsa Tbk PT		1,178,500		819,042
Indofood Sukses Makmur Tbk PT		5,344,500		1,301,565
Kalbe Farma Tbk PT		5,720,500		465,767
Kawasan Industri Jababeka Tbk PT *		10,378,000		133,570
Lippo Karawaci Tbk PT		10,276,750		862,752
Matahari Putra Prima Tbk PT		2,845,500		173,036
Medco Energi Internasional Tbk PT *		1,934,500		1,027,008
Mitra Adiperkasa Tbk PT		866,000		49,883
Panin Insurance Tbk PT *		1,443,000		51,753
Panin Life Tbk PT *		11,175,000		291,054
Polychem Indonesia Tbk PT *		1,930,000		47,459
Ramayana Lestari Sentosa Tbk PT		2,245,500		190,335
Samudera Indonesia Tbk PT		74,500		42,358
Sumalindo Lestari Jaya Tbk PT *		920,000		81,761
Summarecon Agung Tbk PT		3,792,000		135,625
Suryainti Permata Tbk PT *		1,802,000		57,113
Tempo Scan Pacific Tbk PT *		147,500		8,620
Trias Sentosa Tbk PT		1,000,000		23,410
Trimegah Securities Tbk PT		1,540,500		38,458
Tunas Ridean Tbk PT		948,500		102,233
				19,702,455

 

The accompanying notes are an integral part of the financial statements.

108

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Israel - 2.51%
Africa-Israel Investments, Ltd.		3,700	$	139,658
AudioCodes, Ltd. *		26,116		103,444
Azorim Investment Development & Construction Company, Ltd.		15,529		115,369
Bank Hapoalim, Ltd.		1,073,537		4,175,813
Bank Leumi Le-Israel, Ltd.		974,197		4,017,972
Clal Industries & Investments, Ltd.		60,228		234,086
Clal Insurance Enterprise Holdings, Ltd.		29,578		510,703
Delta Galil Industries, Ltd. *		8,190		36,925
Direct Insurance Financial Investments, Ltd.		15,338		44,291
Discount Investment Corp.		25,268		565,145
Electra, Ltd. *		1,422		160,651
Elron Electronic Industries, Ltd. *		23,021		150,099
First International Bank of Israel, Ltd. *		57,569		117,153
Formula Systems, Ltd., GDR		3,500		36,050
Formula Systems, Ltd.		5,626		60,079
Frutarom Industries, Ltd.		6,800		66,149
Harel Insurance Investments, Ltd.		13,397		583,223
IDB Development Corp., Ltd.		6,622		144,504
Israel Salt Industries, Ltd. *		17,450		96,358
Ituran Location & Control, Ltd.		2,562		30,737
Koor Industries, Ltd.		11,087		487,446
Leader Holding & Investments, Ltd.		21,500		25,360
Menorah Mivtachim Holdings, Ltd.		29,464		213,289
Migdal Insurance Holdings, Ltd.		199,738		245,760
Mivtach Shamir Holdings, Ltd.		4,390		133,670
Orbotech, Ltd. *		45,156		487,685
Packer Plada, Ltd.		575		30,682
Radvision, Ltd. *		7,287		48,169
Retalix, Ltd. *		22,317		265,931
Scailex Corp., Ltd.		11,425		82,753
Super-Sol, Ltd.		13,963		64,426
Union Bank of Israel, Ltd. *		25,609		109,658
United Mizrahi Bank, Ltd.		135,710		862,898
Urdan Industries, Ltd.		59,724		63,923
				14,510,059
Malaysia - 3.48%
Affin Holdings BHD		788,300		428,054
AirAsia BHD *		911,500		288,732
AMDB BHD *		540,000		25,338
AMMB Holdings BHD		1,377,750		1,235,851
Ann Joo Resources BHD		108,900		104,250
Asas Dunia BHD *		94,000		20,221
Asia Pacific Land BHD *		282,100		24,799
Bandar Raya Developments BHD		242,900		108,840
Batu Kawan BHD		153,900		375,127
Berjaya Corp. BHD		1,312,300		294,202
Berjaya Land BHD		162,200		209,424
BIMB Holdings Bhd		25,000		7,858
Boustead Holdings BHD		368,900		540,747
Cahya Mata Sarawak BHD		235,100		120,744
Dijaya Corp. BHD		16,900		5,465
DNP Holdings BHD		132,800		36,722
DRB-Hicom BHD		904,600		262,361
Eastern & Oriental BHD		66,000		19,784
Eastern Pacific Industrial Corp. BHD		155,700		63,178

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Malaysia (continued)
ECM Libra Avenue BHD		516,700	$	81,665
Encorp BHD		114,800		22,291
EON Capital BHD		409,900		532,096
Esso Malaysia BHD		89,000		68,056
Gamuda BHD		100,000		75,702
General Corp. BHD		242,500		64,628
Globetronics Technology BHD		864,900		55,877
Glomac BHD		108,200		23,501
Goldis BHD		179,000		70,155
Hap Seng Consolidated BHD		382,300		283,872
Hong Leong Credit BHD		308,300		440,217
Hong Leong Industries BHD		52,000		58,535
Hume Industries Malaysia BHD		138,900		151,972
Hunza Properties BHD		102,400		42,096
Hwang-DBS Malaysia BHD		69,400		31,226
IGB Corp. BHD		968,400		383,034
IJM Corp. BHD *		549,100		812,818
Insas BHD *		460,100		47,143
Integrated Logistics BHD		167,200		39,262
Jaks Resources BHD *		245,000		41,822
Jaya Tiasa Holdings BHD		56,700		50,365
K & N Kenanga Holdings BHD		154,200		29,914
Karambunai Corp. BHD *		2,558,200		52,532
Keck Seng BHD		178,900		213,378
Kian Joo Can Factory BHD		332,000		122,798
Kim Loong Resources BHD		37,800		22,167
KLCC Property Holdings BHD		571,000		454,588
KPJ Healthcare BHD		93,000		89,686
KSL Holdings BHD		155,066		42,119
KUB Malaysia BHD *		592,900		53,742
Kulim Malaysia BHD		154,100		343,501
Kumpulan Hartanah Selangor BHD *		410,900		57,618
Land & General BHD *		1,081,300		88,369
Landmarks BHD		227,400		90,612
LBS Bina Group BHD *		210,000		20,637
Leader Universal Holdings BHD		717,000		130,003
Lion Corp. BHD *		454,900		65,802
Lion Diversified Holdings BHD		358,600		86,086
Lion Industries Corp. BHD		448,000		269,891
MAA Holdings BHD *		139,500		26,811
Malaysia Building Society BHD		274,400		116,736
Malaysian Airline System BHD		162,200		160,823
Malaysian Plantations BHD		545,400		434,187
Malaysian Resources Corp. BHD		163,300		36,697
Matrix International BHD *		258,500		28,832
MBM Resources BHD		5,000		3,528
Measat Global BHD *		7,500		3,153
Mega First Corp. BHD		193,700		60,599
Melewar Industrial Group BHD		127,200		27,208
MISC BHD		110,400		279,278
MK Land Holdings BHD		656,100		34,554
MMC Corp. BHD		371,700		228,863
MNRB Holdings BHD		18,000		22,596
MTD ACPI Engineering BHD		88,100		12,829
Mulpha International BHD *		909,800		312,652
NCB Holdings BHD		4,000		3,530

 

The accompanying notes are an integral part of the financial statements.

109

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Malaysia (continued)
New Straits Times Press BHD		183,500	$	80,810
Nylex Malaysia BHD *		52,000		16,918
Oriental Holdings BHD		304,200		502,624
OSK Holdings BHD		441,300		187,668
Padiberas Nasional BHD		428,300		176,005
Panasonic Manufacturing Malaysia BHD		8,100		27,897
PJ Development Holdings BHD		297,900		49,038
POS Malaysia & Services Holdings BHD		419,700		228,217
PPB Group BHD		637,800		1,760,507
Protasco BHD		141,500		29,605
Proton Holdings BHD *		338,000		297,696
Ramunia Holdings BHD *		328,294		163,204
Ranhill BHD		382,200		115,222
RB Land Holdings BHD *		60,100		19,415
RHB Capital BHD		255,500		313,284
Sarawak Energy BHD		583,800		391,479
Scomi Group BHD		652,300		126,968
Selangor Dredging BHD		328,000		58,791
Shangri-La Hotels BHD		24,100		12,357
Shell Refining Company Federation of Malaya BHD		133,200		431,306
SHL Consolidated BHD		185,100		70,909
Sunrise Berhad		173,000		77,764
Sunway City BHD		268,900		193,380
Sunway Holdings, Inc. BHD *		224,800		58,921
Suria Capital Holdings BHD		286,100		155,374
TA Enterprise BHD		895,600		217,890
Talam Corp. BHD *		360,000		18,909
Tan Chong Motor Holdings BHD		444,000		214,469
TDM BHD		150,700		76,148
Tebrau Teguh BHD *		333,800		47,773
TH Group BHD		225,000		33,245
Time.com BHD *		1,132,700		114,250
Tradewinds Malaysia BHD		82,400		86,896
Tronoh Consolidated M Berhad		218,400		111,263
Unisem M BHD		289,600		123,747
United Malacca BHD		58,900		123,025
Utama Banking Group BHD *		160,080		118,635
V.S. Industry BHD		166,897		87,052
WTK Holdings BHD		257,500		129,484
YNH Property Berhad		193,100		88,524
YTL Corp. BHD		738,000		1,386,532
				20,097,550
Mexico - 9.97%
Alfa SA de CV		433,200		2,258,104
Alsea SAB de CV *		202,800		222,468
Cemex SA de CV, SADR *		663,094		13,295,034
Coca-Cola Femsa SA de CV, ADR		28,121		1,595,586
Consorcio ARA SA de CV		587,500		462,790
Controladora Comercial Mexicana SA de CV		552,700		1,379,768
Corp Moctezuma SAB de CV		368,500		843,955
Corp. GEO SA de CV, Series B *		549,352		1,608,081
Dine SA de CV *		103,700		77,250
Embotelladoras Arca SA de CV		496,941		1,710,798
Empresas ICA SA de CV, SADR *		111,556		2,004,661

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Mexico (continued)
Empresas ICA Sociedad
Controladora SA de CV *		25,600	$	115,020
Fomento Economico Mexicano SA de CV, SADR		245,825		10,919,547
GMD Resorts SAB de CV *		69,300		37,741
Gruma SA de CV, SADR *		67,293		767,813
Gruma SA de CV *		19,921		56,279
Grupo Aeroportuario del Pacifico SA de CV, Series B, SADR		31,800		905,982
Grupo Aeroportuario del Sureste SA de CV, SADR		28,650		1,362,021
Grupo Aeroportuario del Sureste SA de CV		27,200		129,589
Grupo Carso SA de CV		662,500		2,596,460
Grupo Cementos de Chihuahua SA de CV		57,000		247,784
Grupo Continential SA de CV		461,100		1,121,052
Grupo Financiero Inbursa SA de CV		548,000		1,915,355
Grupo Industrial Maseca SA de CV		2,600		2,276
Grupo Industrial Saltillo SA de CV		100,600		139,902
Grupo Iusacell SA de CV *		6		58
Grupo Kuo SA de CV *		164,700		107,315
Grupo Mexicano de Desarrollo, SAB *		69,300		175,225
Grupo Mexico SA		2,541,457		4,233,805
Grupo Simec SAB de CV *		198,600		878,782
Industrias CH SA de CV *		358,600		1,670,462
Organizacion Soriana SA de CV *		1,101,100		3,426,632
Qualitas Compania de Seguros SA de CV *		258,200		134,841
Urbi Desarrollos Urbanos SA de CV *		287,800		806,632
Vitro SA de CV, SADR		92,452		340,223
				57,549,291
Philippines - 0.48%
Belle Corp. *		1,800,000		28,909
Benpres Holdings Corp. *		1,630,000		44,823
China Banking Corp.		3,600		43,359
DMCI Holdings, Inc.		934,000		101,182
Empire East Land Holdings, Inc. *		5,890,000		54,840
Filinvest Development Corp.		404,000		17,198
Filinvest Land, Inc.		11,798,750		200,995
First Philippine Holdings Corp.		281,100		167,144
Megaworld Corp.		11,019,000		345,424
Metropolitan Bank & Trust Company		724,600		593,094
Philippine National Bank *		237,400		164,205
Rizal Commercial Banking Corp.		398,400		146,327
Robinsons Land Corp.		1,703,000		279,650
Security Bank Corp.		155,100		199,939
Union Bank of Philippines		221,200		151,074
Universal Robina Corp.		1,082,100		246,037
				2,784,200
Poland - 3.70%
ABG Ster-Projekt SA		91,909		244,430
Agora SA		46,104		589,814
Alchemia SA *		26,056		85,875
Bank BPH SA *		10,227		326,551
Bank Millennium SA		117,367		356,688
Barlinek SA *		5,475		17,984
Bioton SA *		1,373,084		252,359
Boryszew SA *		21,709		29,198

 

The accompanying notes are an integral part of the financial statements.

110

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Poland (continued)
Cersanit-Krasnystaw SA *		12,636	$	88,855
Ciech SA		15,527		384,701
Computerland SA *		9,818		97,613
Debica SA		7,943		258,493
Dom Development SA		4,937		80,853
Echo Investment SA *		319,170		627,643
Elstar Oils SA *		76,939		181,364
Emperia Holding SA *		2,613		93,086
Fabryka Kotlow Rafako SA *		41,805		124,258
Fabryki Mebli Forte SA *		23,417		58,677
Farmacol SA *		11,889		161,977
Firma Chemiczna Dwory SA *		678,621		269,707
Getin Holding SA *		365,502		1,557,080
Grupa Kety SA		11,048		360,198
Grupa Lotos SA *		57,549		686,468
Impexmetal SA		74,550		70,574
Inter Cars SA		700		13,810
KGHM Polska Miedz SA		140,407		4,727,188
Kredyt Bank SA		59,632		366,895
MNI SA *		41,057		52,285
Mondi Packaging Paper Swiecie SA *		13,399		217,247
Mostostal-Export SA *		22,387		21,263
Multimedia Polska SA		48,854		171,675
Netia SA *		306,083		402,252
Orbis SA		34,217		811,238
Pekaes SA		6,381		34,757
Pfleiderer Grajewo SA		6,153		36,088
Polnord SA *		13,014		267,104
Polski Koncern Miesny Duda SA *		91,151		141,612
Polski Koncern Naftowy Orlen SA		382,506		5,526,859
Przedsiebiorstwo Eksportu i Importu Kopex SA *		17,101		165,786
Softbank SA		37,352		1,016,183
Stalexport Autostrady SA *		202,394		206,933
Zaklady Tluszczowe Kruszwica SA		1,270		26,913
Zelmer SA		7,579		149,772
				21,360,306
South Africa - 8.24%
ABSA Group, Ltd.		144,404		2,038,653
Aeci, Ltd.		91,440		795,525
Afgri, Ltd.		325,008		240,550
African Rainbow Minerals, Ltd.		77,899		2,615,646
AG Industries, Ltd. *		94,914		10,727
Allied Electronics Corp., Ltd.		14,446		68,451
Amalgamated Appliance Holding Company, Ltd. *		46,719		7,302
Argent Industrial, Ltd.		55,365		77,033
Astral Foods, Ltd.		5,852		78,137
AVI, Ltd.		193,728		385,601
Barloworld, Ltd.		65,747		582,303
Capitec Bank Holdings, Ltd.		6,964		26,701
Caxton & CTP Publishers & Printers, Ltd.		152,748		227,238
Ceramic Industries, Ltd.		1,781		16,239
DataTec, Ltd. *		130,971		497,723
Dimension Data Holdings, Ltd.		260,585		251,883
Distell Group, Ltd.		6,321		38,670
Enaleni Pharmaceuticals, Ltd. *		380,905		128,657

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Africa (continued)
Eqstra Holdings, Ltd. *		91,166	$	168,771
FirstRand, Ltd.		757,395		1,612,869
Freeworld Coatings, Ltd.		26,940		26,219
Gijima Ast Group, Ltd.		338,993		36,498
Gold Fields, Ltd., SADR		388,758		3,537,698
Gold Reef Resorts, Ltd.		18,411		42,992
Harmony Gold Mining Company, Ltd., SADR *		211,131		1,838,951
Highveld Steel & Vanadium Corp., Ltd. *		3,483		62,973
Hulamin, Ltd.		13,561		35,077
Iliad Africa, Ltd. *		44,781		50,216
Imperial Holdings, Ltd. *		91,166		638,139
Investec, Ltd.		87,952		655,267
JD Group, Ltd.		116,332		453,911
Kap International Holdings, Ltd.		90,584		23,497
Lewis Group, Ltd.		75,357		375,930
Liberty Group, Ltd. *		100,815		919,817
Medi-Clinic Corp., Ltd.		169,269		403,790
Metair Investments, Ltd.		99,170		103,173
Metropolitan Holdings, Ltd.		512,656		851,799
Mittal Steel South Africa, Ltd.		169,731		3,998,278
Mondi, Ltd.		99,557		644,819
Mustek, Ltd.		97,803		44,665
Mvelaphanda Group, Ltd. *		133,929		112,922
Nampak, Ltd. *		370,718		707,224
Nedbank Group, Ltd.		145,208		1,961,490
Nu-World Holdings, Ltd. *		9,429		20,164
Oceana Group, Ltd.		30,290		73,939
Omnia Holdings, Ltd.		25,339		266,439
Peregrine Holdings, Ltd.		37,143		60,989
PSG Group, Ltd.		96,236		229,520
Sanlam, Ltd.		1,983,568		4,575,854
Santam, Ltd.		15,705		163,158
Sappi, Ltd., SADR		131,495		1,393,847
Sasol, Ltd., SADR		207,411		11,405,531
Steinhoff International Holdings, Ltd. *		581,949		1,391,510
Super Group, Ltd.		196,625		94,449
Tiger Wheels, Ltd. *		14,267		0
Trans Hex Group, Ltd.		57,462		61,359
Trencor, Ltd.		121,229		376,156
Value Group, Ltd.		267,946		78,128
				47,585,067
South Korea - 11.14%
Aekyung Petrochemical Company, Ltd.		1,450		31,966
Asia Cement Company, Ltd.		1,280		68,061
Asia Paper Manufacturing Company, Ltd.		2,000		15,513
Asiana Airlines		16,430		66,303
AUK Corp.		5,400		9,860
Binggrae Company, Ltd.		2,700		90,171
BNG Steel Comapny, Ltd.		1,630		10,712
Bohae Brewery Company, Ltd.		530		8,007
Boryung Pharmaceutical Company, Ltd.		1,164		28,214
Byucksan Engineering & Construction Company, Ltd.		6,140		22,017
C. & Woobang Construction Company, Ltd. *		7,230		8,603
Cambridge Members Company, Ltd.		790		8,721
Cheil Industries, Inc.		14,720		697,447

 

The accompanying notes are an integral part of the financial statements.

111

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
		Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Chin Hung International, Inc. *			41,110	$	49,457
Chokwang Leather Company, Ltd.			2,300		13,694
Chong Kun Dang Pharm Corp.			1,200		20,253
Choongwae Pharma Corp.			2,590		35,722
Chosun Refractories Company, Ltd.			700		57,471
CJ Corp. *			7,366		385,639
Crown Confectionery Company, Ltd.			230		11,011
Dae Chang Industrial Company, Ltd.			27,000		18,713
Dae Dong Industrial Company, Ltd.			2,600		42,845
Dae Han Flour Mills Company, Ltd.			500		91,147
Dae Won Kang Up Company, Ltd.			18,000		30,618
Daeduck Electronics Company, Ltd.			15,700		50,035
Daeduck GDS Company, Ltd.			5,010		30,167
Daegu Bank			55,070		610,510
Daehan Synthetic Fiber Company, Ltd.			130		12,337
Daekyo Company, Ltd.			2,480		140,751
Daelim Industrial Company			10,079		621,221
Daesang Corp.			7,470		62,829
Daesung Industrial Company, Ltd.			900		78,551
Daewoo Electronic Components Company, Ltd. *			48,010		11,165
Daewoo Engineering & Construction
Company, Ltd.			64,860		688,828
Daewoo Motor Sales Corp.			9,730		168,862
Daewoong Company, Ltd.			620		14,160
Daishin Securities Company, Ltd.			16,960		274,161
Daiyang Metal *			4,090		11,287
Daou Technology, Inc.			8,110		36,621
DI Corp.			8,700		11,265
Digital Power Communications Company, Ltd.			14,000		16,817
Dong Ah Tire & Rubber Company, Ltd.			3,100		24,901
Dong Su Industrial Company, Ltd.			3,060		55,129
Dong Wha Pharmaceutical Industrial Company, Ltd.			1,330		50,954
Dongbang Transport Logistics Company, Ltd.			5,650		23,253
Dongbu Corp.			6,900		67,476
Dongbu Hannong Chemicals Company, Ltd. *			7,980		61,081
Dongbu Securities Company, Ltd.			8,769		55,265
Dongbu Steel Company, Ltd.	��		7,360		74,924
Dong-Il Corp.			615		38,236
Dongil Paper Manufacturing Comapny, Ltd.			13,000		10,924
Dongkuk Steel Mill Company, Ltd.			15,700		559,458
Dongwon F & B Company, Ltd.			800		26,837
Dongyang Engineering & Construction Corp.			970		27,615
Dongyang Mechatronics Corp.			8,024		35,129
Doosan Industrial Development Company, Ltd.			7,770		42,317
Duksung Company, Ltd.			5,800		9,239
En Paper Manufacturing Company, Ltd. *			7,900		28,176
F&F Company, Ltd.			5,100		18,482
Fursys, Inc.			1,550		34,803
Gaon Cable Company, Ltd.			1,160		34,469
GIIR, Inc.			3,900		31,502
Global & Yuasa Battery Company, Ltd.			4,200		65,425
Green Non-Life Insurance Company, Ltd.			6,490		48,620
GS Holdings Corp.			19,660		495,264
Gwangju Shinsegae Company, Ltd.			220		25,521
H.S. R & A Company, Ltd.			2,200		16,697

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Hae In Corp.		4,100	$	14,077
Halla Climate Control Company, Ltd.		7,130		66,406
Halla Engineering & Construction Corp.		2,090		39,164
Hana Financial Group, Inc.		55,800		1,976,740
Handok Pharmaceuticals Company, Ltd.		1,000		16,125
Handsome Company, Ltd.		8,058		81,809
Hanil Cement Manufacturing Company, Ltd.		2,150		144,203
Hanil Construction Company, Ltd.		1,470		8,866
Hanil E-Wha Company, Ltd.		6,400		13,376
Hanjin Heavy Industries & Construction Holdings Company, Ltd. *		7,550		116,642
Hanjin Shipping Company, Ltd.		28,500		724,056
Hanjin Transportation Company, Ltd.		3,370		122,623
Hankook Cosmetics Company, Ltd.		6,300		20,630
Hankook Tire Company, Ltd.		51,710		755,256
Hankuk Glass Industries, Inc.		1,820		47,436
Hankuk Paper Manufacturing Company, Ltd.		1,520		51,842
Hanmi Capital Company, Ltd.		3,100		27,435
Hanshin Construction Company, Ltd.		3,010		54,337
Hansol Chemical Company, Ltd.		3,500		27,846
Hansol CSN Company, Ltd.		23,450		29,335
Hansol LCD, Inc.		2,650		42,593
Hansol Paper Company, Inc. *		13,550		190,030
Hanssem Company, Ltd.		6,330		54,041
Hanwha Chem Corp.		33,990		320,409
Hanwha Securities Company, Ltd.		16,840		110,772
Hanwha Timeworld Company, Ltd.		1,700		19,184
Hanyang Securities Company, Ltd.		3,390		34,621
Heung-A Shipping Company, Ltd.		19,140		37,844
Honam Petrochemical Corp.		7,610		449,988
Hotel Shilla Company, Ltd.		11,810		233,131
Husteel Company, Ltd.		1,100		23,789
Hwa Shin Company, Ltd.		14,690		37,321
Hwa Sung Industrial Company, Ltd.		3,530		21,858
Hwacheon Machine Tool Company, Ltd.		730		25,943
Hynix Semiconductor, Inc. *		115,120		2,026,054
Hyosung Corp.		11,870		797,282
Hyundai Cement Company, Ltd.		2,370		39,684
Hyundai Department Store Company, Ltd.		660		53,899
Hyundai DSF Company, Ltd.		2,800		25,707
Hyundai Elevator Company, Ltd.		429		32,873
Hyundai H & S Company, Ltd.		1,102		74,202
Hyundai Hysco Company, Ltd.		21,140		205,180
Hyundai Mipo Dockyard		4,345		621,553
Hyundai Motor Company, Ltd.		86,926		5,679,313
Hyundai Pharmaceutical Industrial Company, Ltd.		9,400		29,465
Hyundai Securities Company, Ltd.		63,397		641,215
Hyundai Steel Company		19,454		900,368
Il Dong Pharmaceutical Company, Ltd.		710		19,561
Iljin Diamond Company, Ltd.		712		9,104
Iljin Electric, Ltd.		3,458		13,816
Ilsung Pharmaceutical Company, Ltd.		990		105,565
Inzi Controls Company, Ltd.		6,490		22,767
Isu Chemical Company, Ltd.		1,800		23,092
Jahwa Electronics Company, Ltd.		5,200		23,066
Jeil Mutual Savings Bank		1,850		7,856

 

The accompanying notes are an integral part of the financial statements.

112

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Jeil Pharmaceutical Company, Ltd. *		1,910	$	18,593
Jeonbuk Bank, Ltd.		9,880		58,188
Joongang Construction Company, Ltd. *		2,700		21,958
KCC Corp.		2,250		738,046
KCTC		1,100		17,211
Keangnam Enterprises, Ltd.		3,358		39,162
Keyang Electric Machinery Company, Ltd.		18,120		32,119
KG Chemical Corp. *		5,600		45,491
Kia Motors Corp. *		100,940		1,203,740
Kirin Company, Ltd. *		1,540		2,429
Kiswire, Ltd.		3,020		113,953
Kolon Engineering & Construction Company, Ltd.		3,130		25,192
Kolon Industries, Inc. *		5,610		174,846
Kookmin Bank, SADR		134,847		7,389,616
Korea Airport Service Company, Ltd.		1,020		38,310
Korea Cast Iron Pipe Industries Company, Ltd.		6,600		31,978
Korea Circuit Company, Ltd. *		5,500		17,063
Korea Development Corp.		2,330		18,631
Korea Development Financing Corp.		1,960		70,628
Korea Electric Terminal Company, Ltd.		2,340		35,683
Korea Exchange Bank		83,640		1,047,504
Korea Flange Company, Ltd.		1,830		18,554
Korea Investment Holdings Company, Ltd.		16,137		528,153
Korea Iron & Steel Company, Ltd.		3,370		143,598
Korea Kumho Petrochemical Company, Ltd.		6,350		176,762
Korea Mutual Savings Bank		870		16,262
Korea Polyol Company, Ltd.		1,522		81,273
Korea Zinc Company, Ltd.		281		32,483
Korean Air Lines Company, Ltd.		18,990		668,009
Korean Petrochemical Industrial Company, Ltd.		2,450		59,848
KP Chemical Corp. *		27,830		158,642
KT Freetel Company, Ltd. *		51,100		1,340,729
KTB Network Corp. *		11,890		68,152
Kukdo Chemical Company, Ltd.		1,520		32,716
Kumho Electric Company, Ltd.		310		6,690
Kumho Industrial Company, Ltd.		10,500		141,085
Kumho Investment Bank		60,370		54,887
Kumho Tire Company, Inc.		20,800		156,512
Kumkang Industrial Company, Ltd.		1,400		13,074
Kwang Dong Pharmaceutical Company, Ltd.		12,810		38,418
Kyeryong Construction Industrial Company, Ltd.		2,550		49,857
Kyung Nong Corp.		11,060		38,344
Kyungbang, Ltd. *		681		78,801
Lee Ku Industrial Company, Ltd.		8,740		8,732
LG Chem, Ltd.		13,400		1,160,024
LG Corp.		1,968		112,327
LG Dacom Corp.		20,670		387,032
LG Electronics, Inc.		23,936		2,205,146
LG International Corp.		9,400		196,303
LG Philips LCD Company, Ltd., ADR		143,000		1,761,760
Lotte Chilsung Beverage Company, Ltd.		310		276,945
Lotte Confectionery Company, Ltd.		400		481,220
Lotte Midopa Company, Ltd. *		7,060		54,662
Lotte Samkang Company, Ltd.		350		61,550

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Lotte Shopping Company, Ltd.		3,652	$	993,749
LS Cable, Ltd.		6,135		444,575
Manho Rope & Wire, Ltd.		1,400		16,524
Meritz Investment Bank *		33,274		36,974
Meritz Securities Company, Ltd.		51,640		51,094
Moorim Paper Company, Ltd.		4,880		51,157
Namyang Dairy Products Company, Ltd.		200		126,733
Nexen Tire Corp.		16,240		38,410
NH Investment & Securities Company, Ltd.		13,470		79,291
Nong Shim Company, Ltd.		1,158		233,065
Nong Shim Holdings Company, Ltd.		1,340		85,259
Ottogi Corp.		706		106,331
Pacific Corp.		979		117,759
Pang Rim Company, Ltd.		950		13,549
PaperCorea, Inc.		2,900		14,751
Pohang Coated Steel Company, Ltd.		1,600		32,515
Poonglim Industrial Company, Ltd.		5,520		23,358
Poongsan Corp.		1,300		21,336
Poongsan Corp. *		6,919		68,624
Pulmuone Company, Ltd.		432		14,776
Pulmuone Company, Ltd. *		677		16,540
Pumyang Construction Company, Ltd.		1,610		25,609
Pusan Bank		48,000		533,803
Pusan City Gas Company, Ltd.		3,700		73,937
S&T Corp.		2,360		32,593
S&T Dynamics Company, Ltd.		10,410		104,247
Saehan Industries, Inc. *		17,230		126,866
Saehan Media Company, Ltd. *		6,266		12,243
Sam Kwang Glass Industrial Company, Ltd.		800		19,473
Sam Lip General Foods Company, Ltd.		3,850		31,169
Sam Young Electronics Company, Ltd.		5,610		51,104
Sam Yung Trading Co Ltd		4,500		17,513
Sambu Construction Company, Ltd.		2,400		77,747
Samho International Company, Ltd.		6,780		48,956
Samick Musical Instruments Company, Ltd. *		8,830		5,769
Samick THK Company, Ltd.		11,120		23,619
Samjin Pharmaceutical Company, Ltd.		5,305		56,541
Samsung Corp.		34,785		1,510,112
Samsung Electro-Mechanics Company, Ltd.		18,100		536,829
Samsung Fine Chemicals Company, Ltd.		7,550		367,940
Samsung SDI Company, Ltd. *		18,020		1,368,892
Samwhan Corp.		3,850		59,434
Samyang Corp.		2,101		81,498
Samyang Genex Company, Ltd.		800		44,669
Samyang Tongsang Company, Ltd.		690		18,566
Savezone I & C Corp.		16,880		27,767
Seah Besteel Corp.		5,550		127,114
SeAH Holdings Corp.		1,020		107,535
SeAH Steel Corp.		900		52,148
Sebang Company, Ltd.		5,070		57,322
Sejong Industrial Company, Ltd.		7,830		37,192
Seoul Securities Company, Ltd.		107,760		105,482
Sgwicus Corp. *		4,800		8,174
SH Chemical Company, Ltd. *		31,743		26,638
Shin Poong Pharmaceutical Company, Ltd.		1,880		33,649

 

The accompanying notes are an integral part of the financial statements.

113

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount			Value
COMMON STOCKS (continued)
South Korea (continued)
Shinhan Engineering & Construction
Company, Ltd. *		3,177		$	26,096
Shinhan Financial Group Company, Ltd., SADR		63,376			5,713,346
Shinheung Securities Company, Ltd.		3,650			59,951
Shinsegae Engineering & Construction
Company, Ltd.		1,110	��		19,784
Shinsung ENG Company, Ltd.		12,890			61,437
Shinyoung Securities Company, Ltd.		3,180			119,677
Silla Company, Ltd.		3,180			48,473
Sindo Ricoh Company, Ltd.		2,940			164,968
SJM Company, Ltd.		8,130			34,611
SK Corp.		12,969			1,291,772
SK Gas Company, Ltd.		2,662			170,807
SKC Company, Ltd.		10,940			186,835
SL Corp.		5,830			29,447
Solomon Mutual Savings Bank		3,600			24,701
Ssangyong Cement Industrial Company, Ltd. *		21,560			185,066
Ssangyong Motor Company, Ltd. *		27,890			66,456
Suheung Capsule Company, Ltd.		2,900			15,793
Sung Bo Chemicals Company, Ltd.		410			12,237
Sung Chang Enterprise Company, Ltd.		1,680			28,268
Sungjee Construction Company, Ltd.		2,210			21,788
Sungshin Cement Company, Ltd. *		5,760			31,805
Sungwon Corp.		4,230			24,947
Sunjin Company, Ltd.		1,010			19,854
Tae Kyung Industrial Company, Ltd.		14,930			62,972
Taegu Department Store Company, Ltd.		2,740			27,311
Taekwang Industrial Company, Ltd.		285			248,645
Taeyoung Engineering & Construction, Ltd.		12,740			54,538
Taihan Electric Wire Company, Ltd.		4,000			115,700
Telcoware Company, Ltd.		4,000			25,664
Trybrands, Inc. *		5,723			20,707
Trybrands, Inc. *		3,036			10,818
TS Corp.		1,100			65,297
Uangel Corp.		7,990			41,477
Unid Company, Ltd.		2,000			62,854
Union Steel Company, Ltd. *		3,060			65,476
Wiscom Company, Ltd.		3,680			13,438
Woongjin Holdings Company, Ltd.		2,870			34,576
Woori Investment & Securities Company, Ltd.		34,950			606,667
Yesco Company, Ltd.		1,480			41,573
Yoosung Enterprise Company, Ltd.		9,880			25,708
Youlchon Chemical Company, Ltd.		9,090			50,766
Young Poong Corp.		307			135,047
Youngone Corp.		11,950			94,452
Yuhwa Securities Company, Ltd.		3,240			55,911
					64,279,906
Taiwan - 11.07%
Acbel Polytech, Inc.		231,540			97,852
Accton Technology Corp. *		21,000			6,611
Achem Technology Corp. *		138,000			65,744
AGV Products Corp. *		228,505			52,936
Allis Electric Company, Ltd.		135,000			33,717
Ambassador Hotel Company, Ltd.		117,000			166,631
Arima Communication Corp. *		202,000			94,810

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Arima Computer Corp. *		490,000	$	76,247
Arima Optoelectronics Corp. *		100,134		41,069
Asia Polymer Corp.		126,000		81,121
Asia Vital Components Company, Ltd. *		80,000		54,422
AU Optronics Corp. ADR		411,423		4,912,390
Audix Corp.		81,200		44,285
Avision, Inc.		111,916		45,811
Bank of Kaohsiung, Ltd.		251,680		99,918
Basso Industry Corp. *		105,000		81,991
Behavior Technology Computer Corp. *		48,800		10,985
BenQ Corp.		460,512		231,818
BES Engineering Corp. *		802,200		184,220
Biostar Microtech International Corp.		85,280		35,324
C Sun Manufacturing, Ltd. *		48,000		22,882
Carnival Industrial Corp. *		198,000		41,117
Cathay Chemical Works, Inc.		73,000		24,040
Cathay Real Estate Development Company, Ltd.		658,000		277,914
Central Reinsurance Company, Ltd.		269,535		113,471
Chain Qui Development Company, Ltd.		76,000		48,900
Champion Building Materials Comapny, Ltd. *		159,000		59,697
Chang Hwa Commercial Bank, Ltd.		2,733,000		1,617,213
Charoen Pokphand Enterprise Company, Ltd.		122,000		54,204
Cheng Loong Corp.		539,000		155,930
Cheng Uei Precision Industry Company, Ltd.		216,300		452,969
Chenming Mold Industrial Corp.		92,128		31,250
Chi Mei Optoelectronics Corp.		3,088,950		2,594,346
Chia Hsin Cement Corp. *		395,560		256,454
Chien Shing Stainless Steel Company, Ltd. *		181,000		37,347
Chilisin Electronics Corp.		63,240		25,943
China Airlines, Ltd. *		1,243,874		420,529
China Chemical & Pharmaceutical Company, Ltd.		129,000		58,357
China Development Financial Holdings Corp.		6,779,216		2,136,644
China Electric Manufacturing Corp.		170,000		85,851
China General Plastics Corp. *		215,000		69,292
China Glaze Company, Ltd.		109,203		32,988
China Manmade Fibers Corp. *		822,000		180,935
China Motor Company, Ltd.		454,905		265,497
China Petrochemical Development Corp. *		1,054,000		378,761
China Steel Structure Company, Ltd.		107,000		58,855
China Synthetic Rubber Corp.		239,000		240,052
China Wire & Cable Company, Ltd. *		120,000		28,399
Ching Feng Home Fashions Company, Ltd. *		105,000		40,118
Chin-Poon Industrial Company, Ltd.		192,000		109,362
Chun Yu Works & Company, Ltd.		115,000		36,289
Chun Yuan Steel Industrial Company, Ltd.		273,962		110,375
Chung Hwa Pulp Corp.		237,000		118,577
Chunghwa Picture Tubes, Ltd.		5,222,000		1,091,070
CMC Magnetics Corp. *		2,112,000		543,501
Collins Company, Ltd. *		222,000		70,177
Compeq Manufactuing Company, Ltd.		610,000		197,315
Continental Engineering Corp.		483,000		218,257
Da-Cin Construction Company, Ltd.		77,000		41,667
Delpha Construction Company, Ltd. *		174,000		33,161
D-Link Corp.		368,220		443,712
E.Sun Financial Holding Company, Ltd.		2,202,720		848,445

 

The accompanying notes are an integral part of the financial statements.

114

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Eastern Media International Corp.		572,000	$	172,246
Eclat Textile Company, Ltd.		120,000		42,853
Edom Technology Company, Ltd.		64,000		24,583
Elite Material Company, Ltd.		200,955		70,621
Elitegroup Computer Systems Company, Ltd. *		612,000		214,230
Enlight Corp.		164,799		15,638
Eternal Chemical Company, Ltd.		267,300		205,117
EVA Airways Corp. *		987,000		361,292
Everest Textile Company, Ltd.		224,000		42,016
Evergreen International Storage & Transport Corp.		453,000		293,935
Evergreen Marine Corp.		786,000		445,417
Everlight Chemical Industrial Corp.		166,000		87,485
Everspring Industry Company, Ltd. *		61,000		12,185
Evertop Wire Cable Corp. *		98,275		24,063
Excel Cell Electronic Company, Ltd.		29,000		11,072
Far Eastern International Bank *		938,000		237,868
Federal Corp.		233,527		115,725
Feng TAY Enterprise Company, Ltd.		209,000		132,473
First Copper Technology Company, Ltd.		169,000		46,976
First Insurance Company, Ltd.		150,165		57,819
Formosa Chemicals & Fibre Corp.		780,000		1,339,401
Formosa Taffeta Company, Ltd.		653,000		493,505
Formosan Rubber Group, Inc.		250,000		126,324
Formosan Union Chemical *		173,264		71,140
FU I Industrial *		159,000		36,592
Fubon Group Company, Ltd.		280,000		235,826
Fwusow Industry Company, Ltd.		103,000		33,204
Gigabyte Technology Company, Ltd.		416,000		288,497
Gigastorage Corp. *		146,000		26,520
Gold Circuit Electronics, Ltd.		257,040		131,313
Goldsun Development & Construction Company, Ltd.		707,301		297,128
Gordon Auto Body Parts Company, Ltd.		50,181		14,652
Grand Pacific Petrochemical Corp. *		484,000		122,000
Grape King, Inc.		108,000		60,374
Great China Metal Industry Company, Ltd.		137,000		61,003
GTM Corp.		95,000		50,448
Hey Song Corp.		251,000		102,465
Hitron Technology, Inc. *		86,000		20,247
Ho Tung Chemical Corp. *		312,000		102,644
Hocheng Group Corp. *		177,000		53,022
Hold-Key Electric Wire & Cable Company, Ltd. *		132,000		35,907
Hong TAI Electric Industrial		155,000		77,003
Hsing TA Cement Company, Ltd.		227,000		69,934
Hua Eng Wire & Cable Company, Ltd.		326,000		83,881
Hua Nan Financial Holdings Company, Ltd.		265,200		197,081
Hung Ching Development Company, Ltd.		147,000		55,222
Hung Sheng Construction Company, Ltd.		325,000		165,117
Hwa Fong Rubber Company, Ltd. *		178,770		38,751
Ichia Technologies, Inc.		168,300		103,688
International Semiconductor Technology, Ltd. *		171,000		45,425
Inventec Company, Ltd.		1,156,050		678,220
Jui Li Enterprise Company, Ltd. *		65,000		17,359
K Laser Technology, Inc. *		76,000		44,660
Kang Na Hsiung Enterprise Company, Ltd.		79,000		38,884
Kao Hsing Chang Iron & Steel Corp. *		130,000		37,236

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Kaulin Manufacturing Company, Ltd. *		73,000	$	44,253
KEE TAI Properties Company, Ltd.		86,512		33,828
Kenda Rubber Industrial Company, Ltd. *		208,550		133,119
Kindom Construction Company, Ltd.		306,000		135,090
King Yuan Electronics Company, Ltd.		622,056		272,453
King’s Town Bank *		535,000		148,635
Kinpo Electronics, Inc.		739,724		205,463
Kwong Fong Industries Corp. *		275,000		59,297
Lan Fa Textile Company, Ltd.		169,781		32,130
Lead Data, Inc. *		205,000		23,104
Lealea Enterprise Company, Ltd. *		388,500		73,065
LEE CHI Enterprises Company, Ltd. *		110,000		37,489
Lelon Electronics Corp.		92,000		22,540
Leofoo Development Company, Ltd. *		179,000		108,262
Li Peng Enterprise Company, Ltd. *		292,864		53,681
Lien Hwa Industrial Corp.		459,574		208,860
Lingsen Precision Industries, Ltd.		146,178		49,990
Lite-On Technology Corp.		1,451,950		1,426,464
Long Bon Development Company, Ltd.		241,000		110,206
Long Chen Paper Company, Ltd. *		277,060		79,795
Lucky Cement Corp. *		190,000		48,349
Macronix International Company, Ltd.		2,289,063		907,516
Mega Financial Holding Company, Ltd.		6,303,000		3,963,323
Meiloon Industrial Company, Ltd.		112,231		44,007
Mercuries & Associates, Ltd.		329,700		134,733
Microelectronics Technology		192,000		102,212
Micro-Star International Company, Ltd.		555,479		385,397
Mitac International		855,916		479,808
Mitac Technology Corp.		250,000		137,830
Mobiletron Electronics Company, Ltd.		31,000		16,894
Mustek Systems, Inc. *		184,000		23,640
Namchow Chemical Industrial Company, Ltd. *		100,000		22,642
Nanya Technology Corp. *		1,936,057		651,709
Nien Hsing Textile Company, Ltd.		285,000		109,289
Optimax Technology Corp. *		319,000		48,694
Pacific Construction Company, Ltd. *		267,000		36,740
Pan Jit International, Inc.		131,121		89,845
Pan-International Industrial Company, Ltd. *		209,000		379,759
Phihong Technology Company, Ltd.		194,573		79,790
Phoenix Precision Technology Corp.		416,847		232,708
Prince Housing Development Corp.		455,000		153,142
Prodisc Technology, Inc. *		540,000		25,512
Quintain Steel Company, Ltd. *		169,000		54,677
Ralec Electronic Corp.		39,000		29,885
Rexon Industrial Corp., Ltd. *		153,000		25,734
Ritek Corp. *		1,659,000		323,480
Sampo Corp. *		400,000		58,033
Sanyang Industrial Company, Ltd.		386,481		146,742
Sanyo Electric Taiwan Company, Ltd.		28,000		22,719
SDI Corp.		59,000		37,726
Sesoda Corp.		69,750		115,944
Sheng Yu Steel Company, Ltd.		151,000		109,138
Shin Kong Financial Holding Company, Ltd.		2,990,398		1,642,935
Shinkong Insurance Company, Ltd.		144,560		70,869
Shinkong Spinning Company, Ltd.		94,000		59,984
Shinkong Synthetic Fibers Corp. *		709,000		169,061

 

The accompanying notes are an integral part of the financial statements.

115

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Shuttle, Inc.		122,000	$	49,748
Sigurd Microelectronics Corp.		151,326		69,659
Silicon Integrated Systems Corp. *		639,000		157,034
Sinon Corp.		164,000		60,029
SinoPac Holdings Company, Ltd.		4,549,000		1,584,303
Sintek Photronic Corp. *		329,000		94,431
Siward Crystal Technology Company, Ltd.		62,192		33,529
Solomon Technology Corp. *		101,200		41,677
Southeast Cement Company, Ltd.		270,000		92,383
Spirox Corp.		99,821		49,951
Standard Chemical & Pharma		64,000		43,187
Standard Foods Corp.		98,000		90,749
Stark Technology, Inc.		95,000		42,765
Sunonwealth Electric Machine Industry
Company, Ltd.		125,080		81,154
Sunplus Technology Company, Ltd. *		272,000		238,514
T JOIN Transportation Company, Ltd. *		175,000		107,370
Ta Chen Stainless Pipe Company, Ltd.		218,000		182,348
Ta Chong Bank, Ltd. *		1,416,000		367,780
Ta Ya Electric Wire & Cable Company, Ltd.		301,970		76,364
Tah Hsin Industrial Company, Ltd.		105,000		61,780
TA-I Technology Company, Ltd.		89,943		62,148
Taichung Commercial Bank *		734,000		275,403
Tainan Enterprises Company, Ltd.		59,000		42,394
Tainan Spinning Company, Ltd.		732,000		250,727
Taishin Financial Holdings Company, Ltd.		3,446,000		1,057,592
Taisun Enterprise Company, Ltd. *		220,000		53,356
Taita Chemical Company, Ltd.		95,790		26,003
Taiwan Acceptance Corp.		83,000		53,166
Taiwan Business Bank *		1,855,000		584,711
Taiwan Cooperative Bank		2,275,275		1,675,252
Taiwan Fire & Marine Insurance Company, Ltd.		77,000		54,584
Taiwan Fu Hsing Industrial Company, Ltd.		83,000		37,502
Taiwan Glass Industrial Corp.		580,011		432,130
Taiwan Hon Chuan Enterprise Company, Ltd.		47,940		47,105
Taiwan Kai Yih Industrial Company, Ltd.		121,563		49,122
Taiwan Kolin Company, Ltd. *		400,000		15,149
Taiwan Life Insurance Company, Ltd.		120,000		120,635
Taiwan Mask Corp.		178,000		82,181
Taiwan Paiho, Ltd.		141,900		84,550
Taiwan Pulp & Paper Corp. *		179,000		74,473
Taiwan Sakura Corp.		87,868		27,756
Taiwan Styrene Monomer Corp.		294,640		95,265
Taiwan Tea Corp. *		374,000		190,362
Taiyen Biotech Company, Ltd. *		131,000		72,915
Tatung Company, Ltd. *		2,070,000		755,314
Teapo Electronic Corp. *		205,000		32,745
Teco Electric & Machinery Company, Ltd.		1,391,000		610,177
Tecom Company, Ltd. *		108,000		54,631
Test-Rite International Company, Ltd.		151,500		86,186
Tex-Ray Industrial Company, Ltd.		90,000		20,764
Thinking Electronic Industrial Company, Ltd.		59,000		41,105
Ton Yi Industrial Corp.		654,000		289,767
Tong Yang Industry Company, Ltd.		177,020		124,779
Twinhead International Corp. *		224,000		25,257
TYC Brother Industrial Company, Ltd. *		120,000		62,488

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Tycoons Group Enterprise Company, Ltd. *		238,000	$	70,385
Tze Shin International Company, Ltd. *		92,220		49,973
Union Bank of Taiwan *		919,000		168,483
Unitech Electronics Company, Ltd.		101,299		46,231
Unitech Printed Circuit Board Corp.		248,950		141,530
United Integrated Services Company, Ltd.		98,000		69,982
United Microelectronics Corp.		9,126,406		3,804,691
Universal Cement Corp. *		299,808		195,058
Universal Scientific Industrial Company, Ltd.		521,100		271,139
UPC Technology Corp.		391,600		177,019
USI Corp.		361,000		164,433
U-Tech Media Corp.		180,000		44,931
Ve Wong Corp. *		84,000		48,215
Walsin Lihwa Corp.		2,014,000		697,300
Walsin Technology Corp. *		294,000		145,669
Wan Hai Lines, Ltd.		711,000		385,050
Waterland Financial Holding Company *		1,211,340		348,063
Wei Chih Steel Industrial Company, Ltd. *		110,000		41,313
Winbond Electronics Corp. *		2,518,000		452,801
Wintek Corp.		690,000		429,594
WUS Printed Circuit Company, Ltd. *		254,000		45,736
Yageo Corp.		1,685,000		499,234
Yang Ming Marine Transport Corp.		938,015		455,266
Yeun Chyang Industrial Company, Ltd. *		177,000		133,076
Yi Jinn Industrial Company, Ltd. *		219,800		39,859
Yieh Phui Enterprise Company, Ltd.		705,350		283,112
Yosun Industrial Corp.		158,993		119,727
Yuen Foong Yu Paper Manufacturing
Company, Ltd.		848,711		277,815
Yulon Motor Company, Ltd.		576,900		462,842
Yung Chi Paint & Varnish Manufacturing
Company, Ltd.		68,850		85,062
Yungtay Engineering Company, Ltd.		200,000		111,448
Zig Sheng Industrial Company, Ltd.		265,402		47,925
Zippy Technology Corp.		69,300		34,904
Zyxel Communications Corp. *		251,000		204,650
				63,901,207
Thailand - 2.49%
Aapico Hitech PCL		192,300		51,108
Adkinson Securities PCL *		2,243,400		34,070
Bangchak Petroleum PCL		150,000		44,685
Bangkok Bank PCL, Foreign Shares		531,900		1,819,135
Bangkok Bank PCL, NVDR		1,142,800		3,875,900
Bangkok Expressway PCL		300,700		155,444
Bangkok Insurance PCL		2,500		18,838
Bangkok Land PCL *		6,465,300		84,970
Bank of Ayudhya PCL, NVDR *		1,330,000		790,043
Cal-Comp Electronics Thailand PCL		1,014,300		135,082
CH. Karnchang PCL		318,100		42,178
Charoen Pokphand Foods PCL		2,954,000		336,466
CS Loxinfo PCL		213,700		17,850
Delta Electronics Thailand PCL		321,600		164,369
Eastern Water Resources Development &
Management PCL		140,000		15,946
Hana Microelectronics PCL		190,000		99,328
Hemaraj Land & Development PCL		5,223,400		180,012

 

The accompanying notes are an integral part of the financial statements.

116

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Thailand (continued)
Jasmine International PCL *		3,860,700	$	46,229
KGI Securities Thailand PCL		1,922,600		79,734
Kiatnakin Finance PCL		282,500		162,537
Krung Thai Bank PCL		4,491,100		996,856
Krungthai Card PCL		126,000		66,974
Loxley PCL *		988,200		72,730
MBK PCL		57,800		115,634
Nakornthai Strip Mill PCL *		7,100,000		68,429
National Finance PCL		793,700		273,530
Padaeng Industry PCL		20,000		12,675
Polyplex PCL		190,000		36,901
Power Line Engineering PCL		246,200		17,832
Pranda Jewelry PCL		214,300		44,437
Precious Shipping PCL		120,000		69,042
PTT Chemical PCL		584,500		1,288,836
Quality House PCL		3,882,100		205,216
Regional Container Lines PCL		209,100		99,542
Robinson Department Store PCL		197,300		58,775
Saha-Union PCL		134,800		70,471
Sahaviriya Steel Industries PCL		6,536,000		181,344
Samart Corp. PCL		214,900		43,307
Sansiri PCL		1,102,100		76,606
SC Asset Corp. PCL		168,200		37,825
Seamico Securities PCL *		421,400		27,076
Shin Satellite PCL *		544,900		91,506
Siam Commercial Bank PCL		368,200		844,150
Siam Industrial Credit PCL		402,200		34,065
Sino Thai Engineering & Construction PCL *		512,900		53,327
Supalai PCL		985,400		81,157
Tata Steel Thailand PCL		2,220,800		125,180
Thai Plastic & Chemical PCL		292,800		174,449
Thai Union Frozen Products PCL		341,400		185,457
Thoresen Thai Agencies PCL		130,600		143,988
Tipco Asphalt PCL		103,300		50,081
Tisco Bank PCL, Foreign		295,100		156,617
TMB Bank PCL *		7,318,998		250,094
TPI Polene PCL		921,000		112,435
Vanachai Group PCL		672,000		58,879
Vinythai PCL		100,000		21,466
				14,400,813
Turkey - 3.29%
Adana Cimento Sanayii TAS		136,519		57,215
Akbank AS		417,274		2,140,993
Akcansa Cimento AS		22,622		88,170
Akenerji Elektrik Uretim AS *		17,570		160,200
Aksa Akrilik Kimya Sanayii AS *		43,831		74,475
Aksigorta AS		116,242		493,957
Alarko Holding AS		60,553		133,773
Anadolu Cam Sanayii AS *		66,575		116,615
Anadolu Isuzu Otomotiv Sanayi AS		7,282		55,712
Anadolu Sigorta AS		187,727		199,553
Arcelik AS		39,940		154,839
Ayen Enerji AS *		20,072		37,854
Aygaz AS *		109,473		291,923
BatiSoke AS		17,732		23,050
Bolu Cimento Sanayii AS		83,405		118,759

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Turkey (continued)
Borusan Mannesmann Boru Sanayi AS		13,810	$	132,259
Bossa Ticaret ve Sanayi Isletmeleri TAS		35,235		39,338
Brisa Bridgestone Sabanci Lastik San ve Tic AS		831		35,982
Cemtas Celik Makina Sanayi ve Ticaret AS		56,218		66,536
Cimsa Cimento Sanayi ve Ticaret AS		47,945		230,935
Deva Holding AS *		9,443		95,186
Dogan Sirketler Grubu Holdings AS *		657,822		956,245
Dogan Yayin Holding AS *		41,169		68,517
Dogus Otomotiv Servis ve Ticaret AS		47,528		156,651
Eczacibasi Ilac Sanayi AS		166,593		188,319
Eczacibasi Yapi Gerecleri Sanayi ve Ticaret AS *		20,408		40,193
EGE Seramik Sanayi ve Ticaret AS *		26,340		21,136
Eregli Demir ve Celik Fabrikalari TAS		532,901		3,579,612
Ford Otomotiv Sanayi AS		28,857		222,447
Gentas Genel Metal Sanayi ve Ticaret AS		46,226		47,686
Global Yatirim Holding AS *		146,381		111,145
Goldas Kuyumculuk Sanayi AS *		54,847		67,256
Goodyear Lastikleri TAS *		3,921		40,974
GSD Holding AS *		221,249		253,506
Gunes Sigorta AS		31,526		78,808
Hektas Ticaret TAS		57,406		52,822
Hurriyet Gazetecilik AS *		31,576		44,359
Ihlas Holding AS *		55,660		28,446
Izmir Demir Celik Sanayi AS		27,749		69,706
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS *		106,346		106,067
Kartonsan Karton Sanayi ve Ticaret AS		638		30,428
KOC Holdings AS *		201,891		698,411
Konya Cimento Sanayii AS		977		33,753
Kordsa Global Endustriyel Iplik ve Kord Bezi Sanayi ve Ticaret Anonim Sirketi AS *		27,311		44,174
Mardin Cimento Sanayii ve Ticaret AS		10,830		45,384
Marmaris Marti Otel Isletmeleri AS *		71,538		40,782
Menderes Tekstil Sanayi ve Ticaret AS *		126,374		42,425
Mutlu Aku ve Malzemeleri Sanayi AS *		28,331		56,081
Net Turizm Ticaret ve Sanayi AS *		98,336		54,326
Nortel Networks Netas Telekomunikasyon AS		5,215		65,533
Parsan Makina Parcalari Sanayii AS *		24,048		47,021
Pinar Entegre Et ve Un Sanayi AS		36,324		99,275
Pinar Sut Mamulleri Sanayii AS		15,498		61,871
Sanko Pazarlama Ithalat Ihracat AS *		20,076		45,588
Sarkuysan Elektrolitik Bakir AS		37,152		85,333
Tekstil Bank AS *		40,278		60,522
Tekstil Bankasi AS *		100,695		149,665
Tofas Turk Otomobil Fabrik AS		35,538		118,779
Trakya Cam Sanayi AS *		178,386		242,372
Tupras Turkiye Petrol Rafine AS		59,836		1,401,548
Turcas Petrolculuk AS		12,113		55,844
Turk Ekonomi Bankasi AS *		39,312		49,190
Turk Sise ve Cam Fabrikalari AS *		416,279		561,629
Turkiye Is Bankasi AS		632,747		3,006,118
Turkiye Vakiflar Bankasi Tao		295,150		557,857
Ulker Gida Sanayi ve Ticaret AS		50,686		129,736
Usas Ucak Servisi AS *		18,304		21,161
Vestel Elektronik Sanayi ve Tracaret AS *		72,630		117,983

 

The accompanying notes are an integral part of the financial statements.

117

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Turkey (continued)
Zorlu Enerji Elektrik Uretim AS *		37,761	$	161,503
				18,965,511
United States - 0.16%
Banco Itau Holding Financeira SA, ADR		7,100		134,900
China Southern Airlines Company, Ltd. *		5,300		84,005
HDFC Bank Ltd		6,838		618,770
Patni Computer Systems, Ltd., SADR		5,762		62,518
				900,193
TOTAL COMMON STOCKS (Cost $634,382,231)			$	540,754,644
PREFERRED STOCKS - 4.87%
Brazil - 4.87%
Banco Sofisa SA (k)		11,700		46,585
Bardella SA Industrias Mecanicas * (k)		916		167,072
Companhia de Tecidos Norte de Minas SA * (k)		10,000		38,957
Contax Participacoes SA (k)		2,000		53,620
Fabrica de Produtos Alimenticios Vigor SA * (k)		70,000		118,098
Forjas Taurus SA * (k)		11,400		45,600
Klabin SA (k)		473,000		1,453,822
Marcopolo SA (k)		102,100		387,730
Metalurgica Gerdau SA (k)		336,600		8,569,877
Petroquimica Uniao SA (k)		13,590		121,726
Sao Paulo Alpargatas SA * (k)		2,400		107,499	��
Saraiva SA Livreiros Editores (k)		5,200		87,730
Suzano Papel e Celulose SA * (k)		137,900		1,751,245
Telemar Norte Leste SA, Series A (k)		100,000		5,214,724
Uniao de Industrias Petroquimicas SA, Series B (k)		389,510		332,159
Universo Online SA (k)		11,200		46,380
Usinas Siderurgicas de Minas Gerais SA,
Series A (k)		273,150		9,585,387
				28,128,211
TOTAL PREFERRED STOCKS (Cost $18,339,657)			$	28,128,211
WARRANTS - 0.01%
India - 0.00%
Cholamandalam DBS Finance, Ltd. (Expiration Date 12/31/2049, Strike Price INR 95.00) *		2,063		496
Malaysia - 0.01%
Bandar Raya Developments BHD (Expiration Date 09/26/2012, Strike Price MYR 1.10) *		109,305		18,360
IJM Land (Expiration date: 12/31/2008) *		54,910		0
				18,360
Thailand - 0.00%
Bangkok Land Public Company, Ltd. (Expiration Date 05/02/2013) *		2,505,930		5,123
TOTAL WARRANTS (Cost $3,171)			$	23,979

 

Emerging Markets Value Fund (continued)
	Shares or Principal Amount		Value
RIGHTS - 0.00%
Chile - 0.00%
Cia Sudamericana de Vapores SA (Expiration Date 09/17/2008, Strike Price CLP 580.00) *		23,287	$	4,996
India - 0.00%
JK Tyre and Industries, Ltd. (Expiration Date 09/02/2008, Strike Price INR 85.00) *		3,633		235
Malaysia - 0.00%
IJM Land BHD (Expiration Date 09/08/2008, Strike Price MYR 1.35) *		48,080		0
Taiwan - 0.00%
Pan Jit International, Inc. (Expiration Date 09/18/2008, Strike Price TWD 17.00) *		116,000		18,023
TOTAL RIGHTS (Cost $0)			$	23,254
REPURCHASE AGREEMENTS - 2.67%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $15,405,909 on 09/02/2008, collateralized by $15,635,000 Federal Home Loan Mortgage Corp., 4.23% due 05/07/2013 (valued at $15,715,364, including interest)	$	15,403,000	$	15,403,000
TOTAL REPURCHASE AGREEMENTS
(Cost $15,403,000)			$	15,403,000
Total Investments (Emerging Markets Value Fund) (Cost $668,128,059) - 101.23%			$	584,333,088
Liabilities in Excess of Other Assets - (1.23)%				(7,106,529	)
TOTAL NET ASSETS - 100.00%			$	577,226,559

 
The portfolio had the following five top industry concentrations as of August 31, 2008 (as a percentage of total net assets):

Banking	16.57	%
Steel	5.75	%
Food & Beverages	5.58	%
Financial Services	4.95	%
International Oil	4.38	%

 

Emerging Small Company Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.00%
Aerospace - 0.77%
Triumph Group, Inc.		10,593	$	579,861
Air Travel - 0.48%
Flughafen Wien AG		4,420		358,508
Apparel & Textiles - 4.69%
Brown Shoe, Inc.		44,013		668,998
Deckers Outdoor Corp. *		5,790		658,265
Gymboree Corp. *		22,019		864,246
Lululemon Athletica, Inc. *		21,093		408,571

 

The accompanying notes are an integral part of the financial statements.

118

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Apparel & Textiles (continued)
Warnaco Group, Inc. *		17,910	$	923,619
				3,523,699
Auto Parts - 0.44%
Titan International, Inc.		12,431		332,405
Auto Services - 0.35%
Sixt AG		8,670		261,453
Banking - 1.48%
PrivateBancorp, Inc. (a)		16,370		501,577
Prosperity Bancshares, Inc.		19,100		610,627
				1,112,204
Biotechnology - 2.31%
Illumina, Inc. *		12,025		1,035,713
Immucor, Inc. *		21,699		698,925
				1,734,638
Building Materials & Construction - 0.45%
Carillion PLC		56,170		335,671
Business Services - 5.41%
FactSet Research Systems, Inc.		17,175		1,077,044
Forrester Research, Inc. *		12,115		419,058
Insight Enterprises, Inc. *		19,280		320,819
Kenexa Corp. *		16,915		391,244
Quest Software, Inc. *		26,400		390,456
Stanley, Inc. *		17,655		601,329
Watson Wyatt Worldwide, Inc., Class A		14,687		860,512
				4,060,462
Cable & Television - 1.00%
Central European Media Enterprises, Ltd.,
Class A *		9,628		750,117
Chemicals - 0.39%
Zoltek Companies, Inc. * (a)		17,133		291,775
Coal - 0.47%
James River Coal Company *		8,305		350,222
Commercial Services - 2.06%
HMS Holdings Corp. *		24,995		619,626
Riskmetrics Group, Inc. *		3,161		70,206
Team, Inc. *		10,725		408,730
Wright Express Corp. *		15,190		451,902
				1,550,464
Computers & Business Equipment - 3.03%
Data Domain, Inc. *		16,200		370,980
Intermec, Inc. *		24,865		499,538
MICROS Systems, Inc. *		31,895		983,004
Sykes Enterprises, Inc. *		20,940		421,731
				2,275,253
Containers & Glass - 0.86%
Silgan Holdings, Inc.		12,315		644,567
Correctional Facilities - 0.74%
The Geo Group, Inc. *		25,247		558,716
Cosmetics & Toiletries - 1.23%
Chattem, Inc. *		13,230		927,688

 

Emerging Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas - 5.14%
Arena Resources, Inc. *		14,700	$	656,649
Carrizo Oil & Gas, Inc. *		14,190		704,392
Concho Resources, Inc. *		23,235		759,088
Dana Petroleum PLC *		18,050		494,157
Goodrich Petroleum Corp. *		5,057		257,148
JKX Oil & Gas PLC		46,875		369,637
Penn Virginia Corp.		9,385		621,099
				3,862,170
Drugs & Health Care - 3.05%
Abiomed, Inc. *		20,270		365,265
BioMarin Pharmaceutical, Inc. *		15,525		467,924
Luminex Corp. *		21,765		554,790
Parexel International Corp. *		28,440		903,539
				2,291,518
Educational Services - 1.18%
American Public Education, Inc. *		8,405		375,704
Capella Education Company *		10,330		513,504
				889,208
Electrical Utilities - 1.34%
Avista Corp.		44,980		1,003,054
Financial Services - 3.40%
Affiliated Managers Group, Inc. *		8,310		791,278
FCStone Group, Inc. *		18,785		392,794
GFI Group, Inc.		51,385		596,066
Intermediate Capital Group PLC		11,500		288,937
Stifel Financial Corp. *		11,941		488,029
				2,557,104
Food & Beverages - 1.18%
Hansen Natural Corp. *		19,855		545,616
Sligro Food Group NV		9,892		340,998
				886,614
Healthcare Products - 6.12%
Conceptus, Inc. * (a)		19,405		327,944
Herbalife, Ltd.		8,450		397,995
Masimo Corp. *		12,680		506,820
Natus Medical, Inc. *		22,236		547,006
PSS World Medical, Inc. *		34,500		630,315
Volcano Corp. *		39,160		719,369
Wright Medical Group, Inc. *		26,325		810,547
Zoll Medical Corp. *		18,885		656,631
				4,596,627
Healthcare Services - 5.14%
Alliance Imaging, Inc. *		21,879		254,015
Amedisys, Inc. * (a)		14,005		745,346
ICON PLC, SADR *		15,474		630,256
Phase Forward, Inc. *		23,420		452,475
Psychiatric Solutions, Inc. *		19,125		721,969
Sun Healthcare Group, Inc. *		61,617		1,059,196
				3,863,257
Industrial Machinery - 2.42%
Actuant Corp., Class A		18,135		572,159
Circor International, Inc.		8,243		496,723

 

The accompanying notes are an integral part of the financial statements.

119

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery (continued)
Middleby Corp. * (a)		13,980	$	745,973
				1,814,855
Industrials - 0.74%
Clean Harbors, Inc. *		6,815		552,969
Insurance - 0.65%
Tower Group, Inc.		23,185		485,726
International Oil - 0.73%
Parker Drilling Company *		59,315		549,850
Internet Content - 0.42%
Moneysupermarket.com Group PLC		225,402		314,861
Internet Software - 1.93%
DealerTrack Holdings, Inc. *		23,255		428,590
Switch & Data Facilities Company, Inc. *		40,320		583,833
Vocus, Inc. *		12,325		439,386
				1,451,809
Life Sciences - 2.00%
Celera Corp. *		50,115		701,610
Dawson Geophysical Company *		12,788		802,191
				1,503,801
Liquor - 1.53%
Central European Distribution Corp. *		19,885		1,147,166
Manufacturing - 2.86%
Aalberts Industries NV		6,460		99,341
Barnes Group, Inc.		23,755		572,971
Kaydon Corp.		8,965		499,619
Peace Mark Holdings, Ltd.		204,000		39,208
Snap-on, Inc.		16,400		935,128
				2,146,267
Medical-Hospitals - 0.99%
Genoptix, Inc. *		21,320		746,200
Petroleum Services - 2.32%
Core Laboratories N.V.		4,555		565,458
GulfMark Offshore, Inc. *		15,897		796,440
Rex Energy Corp. *		19,035		382,032
				1,743,930
Pharmaceuticals - 2.43%
Eurand NV *		43,900		727,423
OSI Pharmaceuticals, Inc. *		8,280		418,140
United Therapeutics Corp. *		6,438		683,265
				1,828,828
Real Estate - 1.37%
Alexandria Real Estate Equities, Inc., REIT		3,685		396,911
Gafisa S.A., SADR		21,920		628,666
				1,025,577
Retail - 0.47%
China Dongxiang Group Company		876,000		351,283
Retail Grocery - 0.96%
Spartan Stores, Inc.		31,595		718,470
Retail Trade - 2.19%
American Eagle Outfitters, Inc.		31,705		477,160

 

Emerging Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade (continued)
Dollar Tree, Inc. *		14,625	$	561,015
Finish Line, Inc.		25,315		306,059
Foot Locker, Inc.		18,535		301,935
				1,646,169
Semiconductors - 8.20%
Cavium Networks, Inc. *		28,045		479,289
Entegris, Inc. *		91,768		565,291
Intersil Corp., Class A		28,780		674,315
Microsemi Corp. *		7,486		205,865
Monolithic Power Systems, Inc. *		30,575		745,113
Netlogic Microsystems, Inc. *		12,805		444,718
ON Semiconductor Corp. *		119,640		1,132,991
Pericom Semiconductor Corp. *		24,805		338,340
Varian Semiconductor Equipment Associates, Inc. *		20,230		653,429
Verigy, Ltd. *		49,760		919,067
				6,158,418
Software - 7.62%
JDA Software Group, Inc. *		51,375		936,566
MedAssets, Inc. *		19,768		351,475
Nuance Communications, Inc. *		44,305		700,019
Omniture, Inc. *		26,502		472,266
Progress Software Corp. *		30,745		898,062
SkillSoft PLC * - ADR *		50,160		546,242
Solera Holdings, Inc. *		29,415		906,864
Taleo Corp. *		19,262		466,333
VeriFone Holdings, Inc. *		22,120		445,939
				5,723,766
Telecommunications Equipment &
Services - 2.24%
Comtech Telecommunications Corp. *		16,255		743,179
NTELOS Holdings Corp.		21,640		643,790
TW Telecom, Inc. *		19,507		299,237
				1,686,206
Telephone - 0.75%
Centennial Communications Corp., Class A *		74,240		565,709
Transportation - 0.69%
Atlas Air Worldwide Holdings, Inc. *		8,925		515,329
Trucking & Freight - 0.78%
Forward Air Corp.		16,707		589,590
TOTAL COMMON STOCKS (Cost $68,064,994)			$	72,864,034
SHORT TERM INVESTMENTS - 3.24%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	2,434,244	$	2,434,244
TOTAL SHORT TERM INVESTMENTS
(Cost $2,434,244)			$	2,434,244

 

The accompanying notes are an integral part of the financial statements.

120

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Emerging Small Company Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 3.62%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $2,721,514 on 09/02/2008, collateralized by $2,645,000 Federal Home Loan Mortgage Corp., 5.75% due 06/27/2016 (valued at $2,777,250, including interest)	$	2,721,000	$	2,721,000
TOTAL REPURCHASE AGREEMENTS
(Cost $2,721,000)			$	2,721,000
Total Investments (Emerging Small Company Fund) (Cost $73,220,238) - 103.86%			$	78,019,278
Liabilities in Excess of Other Assets - (3.86)%				(2,900,743	)
TOTAL NET ASSETS - 100.00%			$	75,118,535

 

Equity-Income Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.18%
Advertising - 0.10%
WPP Group PLC		94,200	$	916,889
Aerospace - 0.16%
Boeing Company		23,500		1,540,660
Air Travel - 0.33%
Southwest Airlines Company		200,100		3,047,523
Aluminum - 0.77%
Alcoa, Inc.		223,600		7,184,268
Auto Parts - 0.54%
Genuine Parts Company		118,250		5,016,165
Automobiles - 0.20%
Ford Motor Company * (a)		417,800		1,863,388
Banking - 5.40%
Allied Irish Banks PLC - London Exchange		369,000		4,669,068
Bank of America Corp.		323,070		10,060,400
Fifth Third Bancorp		367,862		5,804,862
KeyCorp		333,200		4,001,732
National City Corp. (a)		381,800		1,924,272
Royal Bank of Scotland Group PLC		295,000		1,254,657
SunTrust Banks, Inc.		242,200		10,145,758
U.S. Bancorp		399,500		12,728,070
				50,588,819
Biotechnology - 1.26%
Amgen, Inc. *		188,500		11,847,225
Broadcasting - 0.48%
CBS Corp., Class B		279,800		4,527,164
Building Materials & Construction - 0.84%
Masco Corp.		411,900		7,850,814
Business Services - 1.58%
Computer Sciences Corp. *		141,400		6,650,042

 

Equity-Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
H & R Block, Inc.		317,800	$	8,116,612
				14,766,654
Cable & Television - 1.86%
Cablevision Systems Corp., Class A		182,300		5,882,821
Time Warner, Inc.		704,900		11,539,213
				17,422,034
Cellular Communications - 0.47%
Motorola, Inc.		469,700		4,424,574
Chemicals - 1.02%
E.I. Du Pont de Nemours & Company		215,800		9,590,152
Computers & Business Equipment - 0.82%
Dell, Inc. *		353,100		7,672,863
Construction Materials - 1.30%
USG Corp. * (a)		153,000		4,247,280
Vulcan Materials Company (a)		105,700		7,910,588
				12,157,868
Cosmetics & Toiletries - 2.84%
Colgate-Palmolive Company		58,200		4,424,946
International Flavors & Fragrances, Inc.		187,000		7,519,270
Kimberly-Clark Corp.		105,200		6,488,736
Procter & Gamble Company		117,500		8,197,975
				26,630,927
Crude Petroleum & Natural Gas - 0.76%
Sunoco, Inc.		160,900		7,140,742
Drugs & Health Care - 0.93%
Wyeth		201,500		8,720,920
Electrical Equipment - 0.53%
Cooper Industries, Ltd., Class A		104,200		4,964,088
Electrical Utilities - 3.10%
Entergy Corp.		54,600		5,645,094
FirstEnergy Corp.		88,175		6,405,032
PG&E Corp.		124,700		5,153,851
Pinnacle West Capital Corp.		108,500		3,818,115
Teco Energy, Inc.		100,100		1,785,784
Xcel Energy, Inc.		303,100		6,216,581
				29,024,457
Electronics - 0.28%
Harman International Industries, Inc.		77,100		2,623,713
Energy - 1.34%
Duke Energy Corp.		325,400		5,674,976
Progress Energy, Inc.		157,800		6,892,704
				12,567,680
Financial Services - 11.31%
American Express Company		188,300		7,471,744
Bank of New York Mellon Corp.		301,400		10,431,454
Capital One Financial Corp.		177,300		7,826,022
Citigroup, Inc.		254,796		4,838,576
Federal National Mortgage Association		390,100		2,668,284
JP Morgan Chase & Company		610,914		23,514,080
Legg Mason, Inc.		139,200		6,198,576
Merrill Lynch & Company, Inc.		454,400		12,882,240

 

The accompanying notes are an integral part of the financial statements.

121

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Equity-Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Merrill Lynch & Company, Inc. *		148,099	$	3,778,746
SLM Corp. *		423,800		6,996,938
UBS AG *		232,260		5,084,171
Wells Fargo & Company		470,000		14,226,900
				105,917,731
Food & Beverages - 3.66%
General Mills, Inc.		166,700		11,032,206
Hershey Company		339,400		12,248,946
Kraft Foods, Inc., Class A		233,200		7,348,132
McCormick & Company, Inc.		91,100		3,684,995
				34,314,279
Gas & Pipeline Utilities - 1.31%
NiSource, Inc.		435,000		7,168,800
Spectra Energy Corp.		192,300		5,088,258
				12,257,058
Healthcare Products - 1.42%
Johnson & Johnson		188,300		13,261,969
Healthcare Services - 0.49%
WellPoint, Inc. *		87,100		4,598,009
Holdings Companies/Conglomerates - 3.24%
General Electric Company		1,080,900		30,373,290
Homebuilders - 0.40%
D.R. Horton, Inc.		300,900		3,749,214
Household Appliances - 1.27%
Black & Decker Corp.		53,300		3,371,225
Whirlpool Corp.		104,500		8,502,120
				11,873,345
Household Products - 1.70%
Fortune Brands, Inc.		164,800		9,693,536
Newell Rubbermaid, Inc.		341,900		6,188,390
				15,881,926
Insurance - 4.78%
American International Group, Inc.		318,165		6,837,366
Chubb Corp.		77,200		3,706,372
Lincoln National Corp.		180,898		9,182,382
Marsh & McLennan Companies, Inc.		488,800		15,607,384
Progressive Corp.		227,300		4,198,231
The Travelers Companies, Inc.		118,549		5,235,124
				44,766,859
International Oil - 9.30%
Anadarko Petroleum Corp.		142,000		8,765,660
BP PLC, SADR		141,392		8,148,421
Chevron Corp.		257,460		22,223,947
Exxon Mobil Corp.		282,024		22,564,740
Murphy Oil Corp.		116,000		9,109,480
Royal Dutch Shell PLC, ADR		233,800		16,253,776
				87,066,024
Internet Content - 0.68%
Yahoo!, Inc. *		329,000		6,376,020
Internet Retail - 0.48%
eBay, Inc. *		181,900		4,534,767

 

Equity-Income Fund (continued)
	Shares or Principal Amount			Value
COMMON STOCKS (continued)
Leisure Time - 1.92%
MGM Mirage, Inc. * (a)		251,100		$	8,836,209
Walt Disney Company		282,000			9,122,700
					17,958,909
Manufacturing - 3.90%
3M Company		176,200			12,615,920
Harley-Davidson, Inc.		154,100			6,130,098
Honeywell International, Inc.		145,400			7,294,718
Illinois Tool Works, Inc.		211,500			10,492,515
					36,533,251
Office Furnishings & Supplies - 0.91%
Avery Dennison Corp.		176,600			8,519,184
Paper - 1.92%
International Paper Company		464,725			12,570,811
MeadWestvaco Corp.		205,800			5,449,584
					18,020,395
Petroleum Services - 0.93%
BJ Services Company		190,300			5,109,555
Schlumberger, Ltd.		38,600			3,636,892
					8,746,447
Pharmaceuticals - 4.90%
Abbott Laboratories		120,100			6,897,343
Bristol-Myers Squibb Company		304,100			6,489,494
Eli Lilly & Company		265,800			12,399,570
Merck & Company, Inc.		270,700			9,655,869
Pfizer, Inc.		547,600			10,464,636
					45,906,912
Photography - 0.52%			��
Eastman Kodak Company		302,400			4,895,856
Publishing - 2.24%
Gannett Company, Inc.		296,200			5,269,398
McGraw-Hill Companies, Inc.		258,500			11,074,140
The New York Times Company, Class A (a)		357,200			4,640,028
					20,983,566
Retail Grocery - 0.18%
Whole Foods Market, Inc. (a)		90,900			1,664,379
Retail Trade - 2.54%
Bed Bath & Beyond, Inc. *		291,100			8,925,126
Home Depot, Inc.		458,200			12,426,384
Macy’s, Inc.		117,800			2,452,596
					23,804,106
Semiconductors - 1.65%
Analog Devices, Inc.		235,000			6,570,600
Applied Materials, Inc.		197,200			3,533,824
Intel Corp.		233,800			5,347,006
					15,451,430
Software - 1.40%
Microsoft Corp.		480,000			13,099,200
Telecommunications Equipment &
Services - 0.46%
Alcatel-Lucent, SADR *		691,400			4,272,852

 

The accompanying notes are an integral part of the financial statements.

122

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Equity-Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Telephone - 3.84%
AT&T, Inc.		545,873	$	17,462,478
Qwest Communications International, Inc. (a)		1,118,000		4,226,040
Sprint Nextel Corp.		650,600		5,673,232
Verizon Communications, Inc.		245,452		8,620,274
				35,982,024
Tobacco - 0.48%
UST, Inc.		83,700		4,485,483
Toys, Amusements & Sporting Goods - 0.63%
Mattel, Inc.		305,500		5,905,315
Trucking & Freight - 0.81%
United Parcel Service, Inc., Class B		117,800		7,553,336
TOTAL COMMON STOCKS (Cost $998,458,550)			$	900,842,723
PREFERRED STOCKS - 0.42%
Banking - 0.18%
National City Corp., Series 1, 6.00% *		17		1,713,600
Financial Services - 0.24%
Federal National Mortgage Association,
Series 08-1, 8.75% *		129,100		2,214,065
TOTAL PREFERRED STOCKS (Cost $7,330,239)			$	3,927,665
CONVERTIBLE BONDS - 0.07%
Automobiles - 0.07%
Ford Motor Company
4.25% due 12/15/2036		1,043,000		688,623
TOTAL CONVERTIBLE BONDS (Cost $1,043,000)			$	688,623
SHORT TERM INVESTMENTS - 6.60%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	34,215,217	$	34,215,217
T. Rowe Price Reserve Investment Fund,
2.7528%		27,532,881		27,587,877
TOTAL SHORT TERM INVESTMENTS
(Cost $61,803,094)			$	61,803,094
REPURCHASE AGREEMENTS - 0.54%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $5,094,962 on 09/02/2008, collateralized by $5,250,000 Federal Home Loan Mortgage Corp., zero coupon due 01/06/2009 (valued at $5,197,500, including interest)	$	5,094,000	$	5,094,000
TOTAL REPURCHASE AGREEMENTS
(Cost $5,094,000)			$	5,094,000
Total Investments (Equity-Income Fund) (Cost $1,073,728,883) - 103.81%			$	972,356,105
Liabilities in Excess of Other Assets - (3.81)%				(35,698,305	)
TOTAL NET ASSETS - 100.00%			$	936,657,800

 

Fundamental Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 95.67%
Advertising - 0.37%
WPP Group PLC, SADR		122,151	$	5,959,747
Air Travel - 0.01%
Virgin Blue Holdings, Ltd.		245,064		120,192
Banking - 0.97%
Toronto-Dominion Bank		116,776		6,802,202
Wachovia Corp.		555,330		8,824,194
				15,626,396
Broadcasting - 2.75%
Grupo Televisa SA, SADR		779,939		18,078,986
Liberty Media Corp. - Capital, Series A *		49,517		804,651
Liberty Media Corp. - Entertainment, Series A *		205,588		5,713,291
News Corp., Class A		1,388,715		19,664,204
				44,261,132
Business Services - 3.62%
Dun & Bradstreet Corp.		25,405		2,336,498
H & R Block, Inc.		787,499		20,112,725
Iron Mountain, Inc. *		774,707		22,396,779
Moody’s Corp. (a)		327,284		13,307,367
				58,153,369
Cable & Television - 2.77%
Comcast Corp., Special Class A		2,103,900		44,476,446
Coal - 0.57%
China Coal Energy Company, H Shares		5,424,052		9,080,581
Computers & Business Equipment - 2.20%
Cisco Systems, Inc. *		350,957		8,440,516
Dell, Inc. *		637,445		13,851,680
Hewlett-Packard Company		277,910		13,039,537
				35,331,733
Construction Materials - 1.18%
Martin Marietta Materials, Inc. (a)		80,738		9,115,320
Vulcan Materials Company (a)		132,021		9,880,452
				18,995,772
Containers & Glass - 1.68%
Sealed Air Corp.		1,117,099		27,067,309
Cosmetics & Toiletries - 1.59%
Avon Products, Inc.		132,830		5,689,109
Procter & Gamble Company		284,416		19,843,704
				25,532,813
Crude Petroleum & Natural Gas - 10.54%
Devon Energy Corp.		558,866		57,032,275
EOG Resources, Inc.		477,077		49,816,381
Occidental Petroleum Corp.		765,555		60,754,445
OGX Petroleo e Gas Participacoes SA *		5,200		1,838,503
				169,441,604
Electronics - 1.87%
Agilent Technologies, Inc. *		521,930		18,142,287
Garmin, Ltd. *		65,900		2,290,684
Tyco Electronics, Ltd.		292,899		9,639,306
				30,072,277
Financial Services - 16.23%
American Express Company		1,427,170		56,630,106

 

The accompanying notes are an integral part of the financial statements.

123

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Fundamental Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Ameriprise Financial, Inc.		251,417	$	11,301,194
Bank of New York Mellon Corp.		628,772		21,761,799
Brookfield Asset Management, Inc.		356,100		11,017,734
Citigroup, Inc.		353,323		6,709,604
Discover Financial Services		74,719		1,229,127
E*TRADE Financial Corp. * (a)		107,881		345,219
JP Morgan Chase & Company		1,440,243		55,434,953
Merrill Lynch & Company, Inc.		1,959,651		55,556,106
Morgan Stanley		50,342		2,055,464
State Street Corp.		47,175		3,192,332
Visa, Inc.		40,910		3,105,069
Wells Fargo & Company		1,070,288		32,397,618
				260,736,325
Food & Beverages - 1.55%
Diageo PLC, SADR		299,251		22,264,274
Hershey Company		73,899		2,667,015
				24,931,289
Forest Products - 0.35%
Sino-Forest Corp. *		293,950		5,536,824
Gas & Pipeline Utilities - 0.99%
Transocean, Inc. *		125,628		15,979,882
Healthcare Products - 1.50%
Covidien, Ltd.		304,899		16,485,889
Johnson & Johnson		108,000		7,606,440
				24,092,329
Healthcare Services - 2.31%
Cardinal Health, Inc.		238,869		13,133,018
Express Scripts, Inc. *		173,760		12,755,721
UnitedHealth Group, Inc.		368,320		11,215,344
				37,104,083
Holdings Companies/Conglomerates - 7.00%
Berkshire Hathaway, Inc., Class A *		538		62,730,800
China Merchants Holdings International
Company, Ltd.		3,017,531		11,124,322
Loews Corp.		889,162		38,616,305
				112,471,427
Household Products - 0.14%
Hunter Douglas NV		45,243		2,284,812
Industrials - 0.17%
Cosco Pacific, Ltd.		1,824,526		2,775,284
Insurance - 6.60%
Ambac Financial Group, Inc.		183,990		1,317,368
American International Group, Inc.		1,254,898		26,967,758
Aon Corp.		260,404		12,366,586
Markel Corp. *		3,165		1,171,050
MBIA, Inc. (a)		126,300		2,048,586
Millea Holdings, Inc.		229,884		7,797,023
NIPPONKOA Insurance Company, Ltd.		918,665		6,027,294
Principal Financial Group, Inc.		94,030		4,305,634
Progressive Corp.		1,459,034		26,948,358
Sun Life Financial, Inc.		56,745		2,177,306
Transatlantic Holdings, Inc.		247,843		14,895,364
				106,022,327

 

Fundamental Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
International Oil - 5.91%
Canadian Natural Resources, Ltd.		329,213	$	27,999,565
ConocoPhillips		811,772		66,979,308
				94,978,873
Internet Content - 0.52%
Google, Inc., Class A *		17,996		8,337,367
Internet Retail - 0.78%
Amazon.com, Inc. *		68,055		5,499,525
eBay, Inc. *		146,900		3,662,217
Liberty Media Holding Corp.-Interactive A *		247,436		3,362,655
				12,524,397
Liquor - 0.81%
Heineken Holding NV		293,728		13,028,210
Manufacturing - 2.42%
Harley-Davidson, Inc.		479,772		19,085,330
Siemens AG		62,200		6,751,658
Tyco International, Ltd.		304,679		13,064,636
				38,901,624
Mining - 0.70%
BHP Billiton PLC		173,502		5,403,879
Rio Tinto PLC		61,937		5,879,604
				11,283,483
Pharmaceuticals - 0.39%
Schering-Plough Corp.		324,100		6,287,540
Real Estate - 0.33%
Hang Lung Group, Ltd.		1,255,609		5,348,622
Retail Grocery - 0.13%
Whole Foods Market, Inc. (a)		111,100		2,034,241
Retail Trade - 7.97%
Bed Bath & Beyond, Inc. *		381,803		11,706,080
CarMax, Inc. * (a)		347,708		5,146,079
Costco Wholesale Corp.		1,193,054		80,006,200
CVS Caremark Corp.		633,020		23,168,532
Lowe’s Companies, Inc.		265,136		6,532,951
Sears Holdings Corp. * (a)		16,162		1,486,096
				128,045,938
Semiconductors - 1.03%
Texas Instruments, Inc.		675,153		16,548,000
Shipbuilding - 0.32%
China Shipping Development Company, Ltd.,
Class H		2,145,363		5,069,074
Software - 2.14%
Microsoft Corp.		1,259,329		34,367,088
Telephone - 0.53%
Sprint Nextel Corp.		966,728		8,429,868
Tobacco - 3.81%
Altria Group, Inc.		787,520		16,561,546
Philip Morris International, Inc.		832,520		44,706,324
				61,267,870
Transportation - 0.05%
Asciano Group		175,114		727,240

 

The accompanying notes are an integral part of the financial statements.

124

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Fundamental Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Trucking & Freight - 0.87%
Kuehne & Nagel International AG		72,116	$	5,709,363
Toll Holdings, Ltd.		245,064		1,450,977
United Parcel Service, Inc., Class B		107,471		6,891,041
				14,051,381
TOTAL COMMON STOCKS (Cost $1,567,079,916)			$	1,537,284,769
CONVERTIBLE BONDS - 0.15%
Forest Products - 0.15%
Sino-Forest Corp.
5.00% due 08/01/2013 (h)		2,194,000		2,457,280
TOTAL CONVERTIBLE BONDS (Cost $2,194,000)			$	2,457,280
SHORT TERM INVESTMENTS - 7.03%
BMW U.S. Capital LLC
2.08% due 09/08/2008	$	16,029,000	$	16,026,407
John Hancock Cash Investment Trust, 2.5657% (c)(i)		44,703,945		44,703,945
Toyota Motor Credit
2.13% due 09/04/2008		28,957,000		28,951,860
2.18% due 09/03/2008		23,250,000		23,247,184
TOTAL SHORT TERM INVESTMENTS
(Cost $112,929,396)			$	112,929,396
Total Investments (Fundamental Value Fund) (Cost $1,682,203,312) - 102.85%			$	1,652,671,445
Liabilities in Excess of Other Assets - (2.85)%				(45,739,322	)
TOTAL NET ASSETS - 100.00%			$	1,606,932,123

 

Global Bond Fund
	Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS - 29.61%
Federal Home Loan Mortgage Corp. - 3.39%
4.00% due 03/01/2010	$	881,564	$	875,332
4.50% due 02/01/2010		414,370		414,160
5.00% TBA **		4,900,000		4,707,062
6.00% TBA **		13,700,000		13,810,243
				19,806,797
Federal National Mortgage
Association - 16.24%
2.8219% due 03/25/2044 (b)		563,403		551,815
4.49% due 06/01/2043 to 10/01/2044 (b)		4,127,583		4,116,419
4.499% due 11/01/2042 (b)		15,346		15,313
5.00% TBA **		9,500,000		9,170,313
5.146% due 09/01/2035 (b)		359,022		355,833
5.188% due 07/01/2035 (b)		362,712		360,433
5.244% due 11/01/2035 (b)		673,785		681,876
5.50% TBA **		60,100,000		59,329,969
6.00% TBA **		20,000,000		20,161,718
				94,743,689
Government National Mortgage
Association - 9.98%
6.00% due 09/22/2038		2,900,000		2,874,172

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Government National Mortgage
Association (continued)
6.00% due 06/15/2018 to 08/20/2038 (j)	$	2,700,000	$	2,763,040
6.00% TBA **		6,000,000		6,088,128
6.50% due 07/20/2038 (j)		1,151,999		1,187,099
6.50% TBA **		44,000,000		45,316,563
				58,229,002
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $171,264,822)			$	172,779,488
FOREIGN GOVERNMENT OBLIGATIONS - 43.75%
Canada - 1.31%
Province of Quebec, Canada
5.00% due 12/01/2038		CAD   3,700,000		3,564,064
5.75% due 12/01/2036		600,000		650,824
Province of Quebec, Canada
5.125% due 11/14/2016	$	3,200,000		3,305,898
Province of Ontario
6.20% due 06/02/2031		CAD     100,000		112,726
				7,633,512
France - 0.79%
Government of France
4.00% due 04/25/2014		EUR     900,000		1,305,993
4.00% due 10/25/2038		1,600,000		2,091,661
5.50% due 04/25/2010		800,000		1,196,080
				4,593,734
Germany - 6.70%
Federal Republic of Germany
4.00% due 01/04/2037		600,000		800,147
4.00% due 07/04/2016		300,000		435,626
4.25% due 07/04/2039		9,800,000		13,616,399
4.75% due 07/04/2034		1,800,000		2,691,497
6.50% due 07/04/2027		11,900,000		21,544,963
				39,088,632
Ireland - 1.33%
Republic of Ireland
4.40% due 06/18/2019		5,400,000		7,752,300
Italy - 1.51%
Republic of Italy
4.25% due 08/01/2014		6,100,000		8,834,637
Japan - 29.23%
Government of Japan
0.90% due 12/20/2012		JPY 2,690,000,000		24,680,568
1.00% due 06/10/2016		675,180,000		6,129,822
1.10% due 12/10/2016		2,997,200,000		27,301,855
1.10% due 09/20/2012		3,560,000,000		32,974,285
1.20% due 03/10/2017		163,040,000		1,493,391
1.20% due 06/10/2017		2,252,800,000		20,550,007
1.20% due 03/20/2012		740,000,000		6,876,938
1.20% due 12/10/2017		203,400,000		1,850,178
1.30% due 03/20/2018		530,000,000		4,835,017
1.50% due 12/20/2017		1,590,000,000		14,810,574
2.40% due 03/20/2034		600,000,000		5,616,844
2.50% due 09/20/2035		540,000,000		5,153,046
2.50% due 06/20/2036		1,780,000,000		16,969,235

 

The accompanying notes are an integral part of the financial statements.

125

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Japan (continued)
Government of Japan (continued)
2.50% due 03/20/2036		JPY 140,000,000	$	1,334,227
				170,575,987
Netherlands - 0.79%
Kingdom of Netherlands
3.75% due 07/15/2014		EUR   3,200,000		4,587,759
United Kingdom - 2.09%
Government of United Kingdom
4.25% due 06/07/2032		GBP   3,900,000		6,787,078
4.50% due 12/07/2042		2,700,000		5,026,532
4.75% due 12/07/2038		200,000		386,864
				12,200,474
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $256,513,477)			$	255,267,035
CORPORATE BONDS - 52.60%
Australia - 0.35%
National Australia Bank, Ltd., EMTN
2.9988% due 06/19/2017 (b)	$	1,700,000		1,546,519
3.0306% due 06/29/2016 (b)		500,000		467,308
				2,013,827
British Virgin Islands - 0.13%
C10 Capital SPV, Ltd.
6.722% due 12/01/2049 (b)(h)		800,000		744,568
Canada - 4.25%
Alcan, Inc.
6.45% due 03/15/2011		700,000		725,659
Canada Housing Trust
4.55% due 12/15/2012 (h)		CAD  16,300,000		16,030,010
Citigroup Finance Canada, Inc., MTN
5.50% due 05/21/2013		300,000		273,523
DaimlerChrysler Canada Finance, Inc., MTN
4.85% due 03/30/2009		700,000		660,623
Falconbridge, Ltd.
7.35% due 06/05/2012	$	3,000,000		3,167,649
Master Credit Card Trust, Series 06-1
4.38% due 11/21/2009		CAD   1,600,000		1,513,671
Toronto-Dominion Bank, EMTN
5.375% due 05/14/2015		EUR   1,700,000		2,446,325
				24,817,460
Cayman Islands - 2.48%
Foundation Re II, Ltd.
9.5569% due 11/26/2010 (b)(h)	$	400,000		399,882
Mitsubishi UFJ Financial Group, Inc., Capital
Finance 1, Ltd.
6.346% due 07/29/2049 (b)		1,700,000		1,409,686
Mizuho Finance, Ltd.
1.8163% due 09/28/2049 (b)		JPY  200,000,000		1,840,853
Mizuho Financial Group (Cayman), Ltd.
8.375% due 12/29/2049	$	2,500,000		2,498,300
MUFG Capital Finance 2, Ltd.
4.85% due 12/31/2049 (b)		EUR   2,500,000		2,709,238
Residential Reinsurance 2007, Ltd., Series CL4
8.8094% due 06/07/2010 (b)(h)	$	1,900,000		1,914,630

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cayman Islands (continued)
SMFG Preferred Capital
6.078% due 01/29/2049 (b)(h)	$	1,700,000	$	1,383,783
STB Finance Cayman, Ltd.
1.6963% due 08/12/2049 (b)		JPY 100,000,000		916,013
Transocean, Inc.
2.8731% due 09/05/2008 (b)	$	1,400,000		1,400,005
				14,472,390
Denmark - 0.57%
Nykredit Realkredit AS, Series IOH
5.00% due 10/01/2038 (b)		DKK   5,997,698		1,088,369
Realkredit Danmark A/S, Series 83D
5.00% due 10/01/2038		11,956,280		2,209,105
				3,297,474
France - 1.87%
BNP Paribas Covered Bonds SA, EMTN
4.75% due 05/28/2013		EUR   1,700,000		2,470,367
CM-CIC Covered Bonds, EMTN
5.25% due 06/09/2010		1,600,000		2,348,782
Lafarge SA
6.50% due 07/15/2016	$	2,000,000		1,876,466
Vivendi
5.75% due 04/04/2013		4,300,000		4,228,246
				10,923,861
Germany - 0.71%
Deutsche Bank AG
4.875% due 05/20/2013		2,500,000		2,452,275
6.00% due 09/01/2017		1,700,000		1,711,667
				4,163,942
Iceland - 0.17%
Glitnir Banki HF
3.255% due 01/18/2012 (b)(h)		1,300,000		978,173
Ireland - 0.34%
Osiris Capital PLC, Series D
7.7906% due 01/15/2010 (b)(h)		500,000		502,419
TransCapitalInvest, Ltd., for OJSC AK Transneft
8.70% due 08/07/2018 (h)		1,500,000		1,508,318
				2,010,737
Italy - 0.14%
Intesa Sanpaolo SpA, EMTN
6.375% due 11/12/2017 (b)		GBP     450,000		802,226
Japan - 1.09%
Bank of Tokyo-Mitsubishi UFJ, Ltd., Series E, MTN
3.50% due 12/16/2015 (b)		EUR     600,000		824,389
Mizuho Trust & Banking Company
2.8813% due 04/27/2009		JPY 100,000,000		927,921
Sumitomo Mitsui Banking Corp., Series E, MTN
1.5938% due 12/31/2049 (b)		100,000,000		921,792
1.7181% due 12/31/2049 (b)		100,000,000		920,554
1.8438% due 12/01/2049 (b)		300,000,000		2,772,860
				6,367,516
Luxembourg - 0.78%
Gaz Capital SA
7.343% due 04/11/2013 (h)	$	1,000,000		998,750
8.146% due 04/11/2018 (h)		700,000		691,250

 

The accompanying notes are an integral part of the financial statements.

126

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Luxembourg (continued)
Telecom Italia Capital SA
3.2806% due 02/01/2011 (b)	$	3,000,000	$	2,881,380
				4,571,380
Netherlands - 0.18%
Deutsche Telekom International Finance BV
8.75 due 06/15/2030		500,000		551,086
Siemens Financieringsmaatschappij NV
2.8544% due 08/14/2009 (b)(h)		500,000		500,085
				1,051,171
Norway - 0.42%
DnB NOR Boligkreditt, EMTN
4.50% due 05/16/2011		EUR   1,700,000		2,471,639
South Korea - 0.27%
Export-Import Bank of Korea, Series E, MTN
5.75% due 05/22/2013		1,100,000		1,581,964
Spain - 1.83%
Bankinter SA, Series E, MTN
5.00% due 05/14/2010		3,600,000		5,250,236
Caja de Ahorros y Monte de Piedad de Madrid, SA
4.25% due 02/21/2014		2,700,000		3,834,706
Santander US Debt SA Unipersonal
2.7331% due 11/20/2009 (b)(h)	$	1,600,000		1,586,546
				10,671,488
Switzerland - 0.82%
UBS AG/Stamford Branch, MTN
5.75% due 04/25/2018		5,000,000		4,786,745
United Kingdom - 3.05%
Barclays Bank PLC
6.05% due 12/04/2017 (h)		7,500,000		7,076,625
7.70% due 12/31/2049 (b)(h)		1,000,000		940,410
8.25% due 02/28/2049		GBP     600,000		1,117,915
Barclays Bank PLC, EMTN
6.00% due 01/23/2018		EUR     600,000		845,952
HBOS Treasury Services PLC, MTN
2.8294% due 07/17/2009 (b)(h)	$	200,000		199,907
HSBC Holdings PLC
6.50% due 05/02/2036		2,000,000		1,846,226
Pearson Dollar Finance Two PLC
6.25% due 05/06/2018 (h)		1,000,000		984,674
Royal Bank of Scotland Group PLC
7.0916% due 10/29/2049		EUR   3,500,000		4,218,135
XL Capital Finance PLC
6.50% due 01/15/2012	$	600,000		569,558
				17,799,402
United States - 33.15%
ACE INA Holdings, Inc.
5.875% due 06/15/2014		300,000		302,220
Alcoa, Inc.
6.00% due 01/15/2012		1,900,000		1,919,283
Allstate Life Global Funding Trusts, MTN
5.375% due 04/30/2013		1,800,000		1,797,779
American Electric Power Company, Inc.
5.25% due 06/01/2015		2,000,000		1,905,490
American Express Bank FSB
5.50% due 04/16/2013		3,700,000		3,504,192

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
United States (continued)
American Express Bank FSB, BKNT
2.6106% due 06/12/2012 (b)	$	900,000	$	837,169
American Express Company
7.00% due 03/19/2018		4,500,000		4,419,284
American Express Credit Corp., MTN
2.5256% due 05/18/2009 (b)		1,400,000		1,389,527
3.8719% due 05/27/2010 (b)		700,000		684,137
5.875% due 05/02/2013		1,200,000		1,153,866
American General Finance Corp.
6.90% due 12/15/2017		2,000,000		1,602,126
American International Group, Inc.
8.175% due 05/15/2058 (b)(h)		3,600,000		2,780,575
8.25% due 08/15/2018 (h)		1,800,000		1,774,478
American International Group, Inc., MTN
5.85% due 01/16/2018		2,200,000		1,852,398
American International Group, Inc., Series A3
4.875% due 03/15/2067 (b)		EUR   1,000,000		1,020,939
Amgen, Inc.
6.15% due 06/01/2018	$	3,000,000		3,085,923
Autozone, Inc.
5.875% due 10/15/2012		500,000		498,252
BAE Systems Holdings, Inc.
6.40% due 12/15/2011 (h)		700,000		727,297
Bank of America Corp.
8.125% due 12/29/2049 (b)		4,400,000		3,972,232
Bank of America Corp., Series E, MTN
4.625% due 02/07/2017		EUR   1,500,000		1,962,589
Bear Stearns Companies, Inc.
6.95% due 08/10/2012	$	3,100,000		3,219,911
7.25% due 02/01/2018		4,400,000		4,558,972
BellSouth Corp.
5.20% due 09/15/2014		600,000		594,975
Boston Scientific Corp.
6.00% due 06/15/2011		700,000		694,750
Capital One Financial Corp., MTN
5.70% due 09/15/2011		600,000		563,222
Charter One Bank NA, BKNT
2.845% due 04/24/2009 (b)		3,250,000		3,244,345
Citigroup Funding, Inc., MTN
2.4719% due 04/23/2009 (b)		1,000,000		988,229
Citigroup, Inc.
5.50% due 04/11/2013		3,400,000		3,278,885
6.00% due 08/15/2017		1,900,000		1,761,731
6.125% due 11/21/2017		6,600,000		6,206,297
6.125% due 05/15/2018		8,300,000		7,760,102
8.40% due 04/29/2049 (b)		4,300,000		3,650,786
Clorox Company
5.45% due 10/15/2012		2,000,000		2,016,710
CNA Financial Corp.
6.00% due 08/15/2011		1,000,000		1,013,921
Consumers Energy Company
5.00% due 02/15/2012		900,000		897,947
CVS Caremark Corp.
5.75% due 08/15/2011		700,000		719,045
D.R. Horton, Inc.
6.00% due 04/15/2011		800,000		720,000
DaimlerChrysler NA Holding Corp., MTN
5.75% due 09/08/2011		300,000		301,129

 

The accompanying notes are an integral part of the financial statements.

127

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
United States (continued)
FPL Group Capital, Inc.
3.6937% due 06/17/2011 (b)	$	1,200,000	$	1,210,814
General Electric Capital Corp.
5.875% due 01/14/2038		5,000,000		4,502,175
6.375% due 11/15/2067 (b)		1,000,000		915,884
General Electric Capital Corp., MTN
3.7119% due 05/22/2013 (b)		1,900,000		1,891,819
General Motors Acceptance LLC, MTN
3.9513% due 09/23/2008 (b)		200,000		199,145
GlaxoSmithKline Capital, Inc.
5.65% due 05/15/2018		1,900,000		1,905,442
Goldman Sachs Group, Inc.
5.25% due 06/01/2016	CAD	1,500,000		1,342,188
5.95% due 01/18/2018	$	1,300,000		1,229,807
6.15% due 04/01/2018		2,000,000		1,913,134
7.25% due 04/10/2028	GBP	300,000		569,958
Goldman Sachs Group, Inc., Series E, MTN
5.375% due 02/15/2013	EUR	700,000		985,633
HJ Heinz Finance Company
6.00% due 03/15/2012 (b)	$	600,000		617,854
Home Depot, Inc.
5.40% due 03/01/2016		1,000,000		904,840
HSBC Finance Corp.
5.25% due 01/15/2014		1,700,000		1,655,654
Intuit, Inc.
5.75% due 03/15/2017		2,000,000		1,896,634
J.C. Penney Company, Inc.
8.00% due 03/01/2010		700,000		721,793
Johnson Controls, Inc.
5.25% due 01/15/2011		600,000		607,964
JP Morgan Chase & Company
6.00% due 01/15/2018		5,400,000		5,229,263
6.40% due 05/15/2038		1,900,000		1,764,714
JP Morgan Chase & Company, MTN
5.058% due 02/22/2021 (b)	CAD	700,000		612,905
JP Morgan Chase Bank NA
4.375% due 11/30/2021 (b)	EUR	500,000		614,891
JP Morgan Chase Bank NA, BKNT
6.00% due 10/01/2017	$	5,000,000		4,839,980
JP Morgan Chase Capital XX, Series T
6.55% due 09/29/2036		900,000		740,534
Kinder Morgan Energy Partners LP, MTN
6.95% due 01/15/2038		2,500,000		2,441,650
Lehman Brothers Holdings, Inc., MTN
2.8512% due 12/23/2008 (b)		1,000,000		980,624
5.625% due 01/24/2013		6,800,000		6,349,799
6.875% due 05/02/2018		4,200,000		3,910,305
Loews Corp.
5.25% due 03/15/2016		200,000		191,888
Masco Corp.
6.125% due 10/03/2016		700,000		613,227
McKesson Corp.
5.70% due 03/01/2017		600,000		580,036
Merrill Lynch & Company, Inc., MTN
2.8394% due 10/23/2008 (b)		1,200,000		1,193,848
2.8944% due 08/14/2009 (b)		300,000		289,188
5.0538% due 05/12/2010 (b)		5,500,000		5,376,503
6.875% due 04/25/2018		4,000,000		3,684,036

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
United States (continued)
Metropolitan Life Global Funding I
5.125% due 04/10/2013 (h)	$	3,500,000	$	3,468,203
Morgan Stanley
3.235% due 10/18/2016 (b)		600,000		492,806
6.25% due 08/28/2017		300,000		273,058
Morgan Stanley, MTN
6.00% due 04/28/2015		9,400,000		8,658,208
Motorola, Inc.
6.00% due 11/15/2017		700,000		607,326
Nabors Industries, Inc.
6.15% due 02/15/2018 (h)		2,000,000		1,967,644
Nationwide Health Properties, Inc.
6.50% due 07/15/2011		600,000		613,380
Newell Rubbermaid, Inc.
4.00% due 05/01/2010		600,000		588,659
Nisource Finance Corp.
5.40% due 07/15/2014		200,000		188,826
Norfolk Southern Corp.
5.257% due 09/17/2014		2,000,000		2,019,444
Pricoa Global Funding I
2.8963% due 01/30/2012 (b)(h)		3,000,000		2,885,970
2.9394% due 06/26/2012 (b)(h)		2,900,000		2,780,767
Prudential Financial, Inc., MTN
6.625% due 12/01/2037		2,000,000		1,878,640
Rabobank Capital Funding Trust
5.254% due 12/29/2049 (b)(h)		1,700,000		1,464,633
Reynolds American, Inc.
3.4763% due 06/15/2011 (b)		800,000		761,554
Sabre Holdings Corp.
7.35% due 08/01/2011		700,000		556,500
Sara Lee Corp.
6.25% due 09/15/2011		500,000		512,126
Sealed Air Corp.
5.625% due 07/15/2013 (h)		700,000		684,692
Simon Property Group LP
6.10% due 05/01/2016		1,000,000		976,320
Southwest Airlines Company
5.125% due 03/01/2017		500,000		431,051
Sprint Capital Corp.
8.75% due 03/15/2032		200,000		194,500
Sprint Nextel Corp.
6.00% due 12/01/2016		1,000,000		912,500
State Street Capital Trust IV
3.7763% due 06/15/2037 (b)		1,800,000		1,265,567
Supervalu, Inc.
7.50% due 11/15/2014		100,000		99,000
Target Corp.
7.00% due 01/15/2038		2,100,000		2,169,203
Tate & Lyle International Finance PLC
5.00% due 11/15/2014 (h)		300,000		274,249
Verizon Communications, Inc.
4.35% due 02/15/2013		4,000,000		3,903,272
Viacom, Inc.
5.75% due 04/30/2011		600,000		595,271
Virginia Electric & Power Company
6.35% due 11/30/2037		100,000		99,095
Wachovia Corp., MTN
5.50% due 05/01/2013		4,200,000		3,856,310

 

The accompanying notes are an integral part of the financial statements.

128

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
United States (continued)
WEA Finance LLC
7.125% due 04/15/2018 (h)	$	2,000,000	$	1,914,298
Wells Fargo & Company
4.375% due 01/31/2013		1,900,000		1,819,930
Wells Fargo Capital XIII, MTN, Series G
7.70% due 12/29/2049 (b)		2,000,000		1,899,228
Xerox Corp.
9.75% due 01/15/2009		700,000		714,792
				193,391,864
TOTAL CORPORATE BONDS (Cost $320,285,496)			$	306,917,827
MUNICIPAL BONDS - 2.12%
California - 1.43%
California State Various Purpose
5.00% due 11/01/2037		2,800,000		2,732,632
Golden State Tobacco Securitization Corp.,
California Tobacco Settlement Revenue, Series A
5.00% due 06/01/2038		4,300,000		3,910,678
Golden State Tobacco Securitization Corp.,
California Tobacco Settlement Revenue, Series A-1
5.125% due 06/01/2047		300,000		223,206
State of California
5.00% due 12/01/2037		1,500,000		1,463,850
				8,330,366
Illinois - 0.43%
Chicago Illinois Transit Authority, Series A
6.899% due 12/01/2040		2,100,000		2,227,260
Chicago Illinois, Series A
4.75% due 01/01/2030		300,000		297,993
				2,525,253
New York - 0.02%
New York City Municipal Water Finance Authority, Water & Sewer Revenue, Series 1289 10.458% due 06/15/2038 (b)		130,000		119,068
Ohio - 0.24%
Buckeye Tobacco Settlement Financing Authority 5.875% due 06/01/2047		1,700,000		1,380,332
Puerto Rico - 0.00%
Puerto Rico Sales Tax Financing Corp. zero coupon due 08/01/2054		500,000		35,480
TOTAL MUNICIPAL BONDS (Cost $12,862,445)			$	12,390,499
COLLATERALIZED MORTGAGE OBLIGATIONS - 23.13%
Australia - 1.91%
Crusade Global Trust, Series 2004-2, Class A2
5.106% due 11/19/2037 (b)	EUR	1,262,417		1,780,541
Puma Finance, Ltd., Series 2004-P10, Class BA
7.61% due 07/12/2036 (b) AUD		642,580		544,395
Puma Finance, Ltd., Series 2005-P11, Class BA
7.47% due 08/22/2037 (b)		551,034		458,420

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Australia (continued)
Superannuation Members Home Loans Global Fund, Series 2004-7, Class A1
2.8169% due 03/09/2036 (b)	$	1,660,630	$	1,585,874
Swan, Series 2006-1E, Class A1
2.8838% due 05/12/2037 (b)		2,358,108		2,240,203
Swan, Series 2006-1E, Class A2
7.45% due 05/12/2037 (b)	AUD	2,122,297		1,781,303
Torrens Trust, Series 2007-1, Class A
5.079% due 09/19/2014 (b)		3,318,165		2,769,898
				11,160,634
Ireland - 0.61%
German Residential Asset Note Distributor PLC, Series 2006-1, Class A
5.198% due 07/20/2016 (b)	EUR	1,248,604		1,683,666
Immeo Residential Finance PLC, Series 2007-2, Class A
5.118% due 12/15/2016 (b)		1,360,858		1,869,802
				3,553,468
Italy - 0.08%
Cordusio RMBS SRL, Series 2007-4, Class A1
5.015% due 12/31/2040 (b)		300,000		437,798
Netherlands - 0.93%
Atomium Mortgage Finance BV,
Series 2003-I, Class A
4.69% due 07/01/2034 (b)		642,770		939,897
Delphinus BV, Series 2001-II, Class A1
5.255% due 11/28/2031 (b)		1,031,316		1,497,508
Delphinus BV, Series 2003-I, Class A1
5.243% due 04/25/2093 (b)		1,000,000		1,458,585
Dutch Mortgage Portfolio Loans, BV, Series III, Class A
5.213% due 11/20/2035 (b)		1,062,309		1,525,134
				5,421,124
Spain - 0.11%
Bancaja Fondo de Titulizacion de Activos, Series 2005-8, Class A
5.073% due 10/25/2037 (b)		521,787		661,049
United States - 19.49%
Adjustable Rate Mortgage Trust, Series 2005-5, Class 2A1
5.1414% due 09/25/2035 (b)	$	178,116		142,754
American Home Mortgage Investment Trust, Series 2007-1, Class GA2
2.7119% due 05/25/2047 (b)		449,149		163,522
American Home Mortgage Investment Trust, Series 2004-3, Class 5A
4.29% due 10/25/2034 (b)		626,329		536,499
Banc of America Commercial Mortgage, Inc., Series 2002-2, Class A2
4.772% due 07/11/2043		1,559,798		1,547,702
Banc of America Funding Corp., Series 2006-A, Class 1A1
4.6249% due 02/20/2036 (b)		1,844,326		1,657,448
Banc of America Funding Corp., Series 2006-J, Class 4A1
6.131% due 01/20/2047 (b)		245,312		188,482

 

The accompanying notes are an integral part of the financial statements.

129

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
Banc of America Mortgage Securities, Series 2004-4, Class 1A9
5.00% due 05/25/2034	$	1,543,928	$	1,480,096
BCAP LLC Trust, Series 2006-AA2, Class A1
2.6419% due 01/25/2037 (b)		2,880,247		1,716,760
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2003-5, Class 1A2
4.5338% due 08/25/2033 (b)		155,948		150,917
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2003-7, Class 6A
4.6477% due 10/25/2033 (b)		294,362		283,973
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2003-9, Class 2A1
4.4565% due 02/25/2034 (b)		42,744		36,042
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2004-2, Class 22A
4.418% due 05/25/2034 (b)		531,615		508,652
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2004-2, Class 23A
4.6297% due 05/25/2034 (b)		184,575		177,491
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-2, Class A1
4.125% due 03/25/2035 (b)		3,271,435		3,037,862
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-2, Class A2
4.125% due 03/25/2035 (b)		1,218,152		1,165,297
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-5, Class A1
4.45% due 08/25/2035 (b)		1,683,359		1,585,591
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-5, Class A2
4.55% due 08/25/2035 (b)		1,774,819		1,687,121
Bear Stearns Adjustable Rate Mortgage Trust,
Series 2005-9, Class A1
4.625% due 10/25/2035 (b)		3,270,311		3,044,507
Bear Stearns Alt-A Trust, Series 2005-7, Class 22A1
5.5045% due 09/25/2035 (b)		2,247,946		1,840,580
Bear Stearns Alt-A Trust, Series 2005-9, Class 24A1
5.5783% due 11/25/2035 (b)		1,179,696		974,385
Bear Stearns Alt-A Trust, Series 2006-8, Class 3A1
2.6319% due 02/25/2034 (b)		108,290		67,648
Bear Stearns Alt-A Trust, Series 2006-6, Class 31A1
5.7981% due 11/25/2036 (b)		2,573,230		1,808,719
Bear Stearns Alt-A Trust, Series 2006-6, Class 32A1
5.7779% due 10/25/2036 (b)		2,010,937		1,367,946
Bear Stearns Structured Products, Inc., Series
2007-R6, Class 1A1
5.6719% due 01/26/2036 (b)		1,192,170		977,736
Bear Stearns Structured Products, Inc., Series
2007-R7, Class A1
2.66% due 01/26/2037 (b)(h)		817,308		792,789
Bella Vista Mortgage Trust,
Series 2005-2, Class 2A1
2.7206% due 05/20/2045 (b)		826,159		556,405
Citigroup Commercial Mortgage Trust, Series
2007-C6, Class A3B
5.7002% due 02/10/2017 (b)		900,000		815,464

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
Citigroup Mortgage Loan Trust, Inc., Series
2005-11, Class 1A1
4.90% due 12/25/2035 (b)	$	486,760	$	462,749
Citigroup Mortgage Loan Trust, Inc., Series
2005-11, Class A2A
4.70% due 12/25/2035		2,301,275		2,164,428
Citigroup Mortgage Loan Trust, Inc., Series
2005-12, Class 2A1
3.2719% due 08/25/2035 (b)		1,150,392		1,000,527
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A1
4.7475% due 08/25/2035 (b)		941,312		896,784
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A2
4.2475% due 08/25/2035 (b)		1,002,753		948,736
Commercial Mortgage Pass Through
Certificates, Series 2006-CN2A, Class A2FL
2.68% due 02/05/2019 (b)(h)		2,600,000		2,497,637
Countrywide Alternative Loan Trust, Series
2005-21CB, Class A3
5.25% due 06/25/2035		301,852		261,613
Countrywide Alternative Loan Trust, Series
2005-56, Class 2A2
5.119% due 11/25/2035 (b)		127,971		87,179
Countrywide Alternative Loan Trust, Series
2005-56, Class 2A3
4.579% due 11/25/2035 (b)		127,971		85,781
Countrywide Alternative Loan Trust, Series
2006-OA19, Class A1
2.6506% due 02/20/2047 (b)		2,389,523		1,478,757
Countrywide Alternative Loan Trust, Series
2007-11T1, Class A12
2.8219% due 05/25/2037 (b)		530,109		283,070
Countrywide Alternative Loan Trust, Series
2007-16CB, Class 5A1
6.25% due 08/25/2037		260,690		162,867
Countrywide Alternative Loan Trust, Series
2007-7T2, Class A9
6.00% due 04/25/2037		439,809		271,702
Countrywide Alternative Loan Trust, Series
2007-OA7, Class A1A
2.6519% due 05/25/2047 (b)		2,525,441		1,556,938
Countrywide Alternative Loan Trust,
Series 2005-11CB, Class 2A8
4.50% due 06/25/2035		786,928		778,707
Countrywide Alternative Loan Trust,
Series 2005-81, Class A1
2.7519% due 02/25/2037 (b)		4,465,893		2,865,929
Countrywide Alternative Loan Trust,
Series 2006-OA1, Class 2A1
2.6806% due 03/20/2046 (b)		1,519,481		956,885
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-12, Class 11A1
4.7323% due 08/25/2034 (b)		114,675		90,915
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-22, Class A3
4.7957% due 11/25/2034 (b)		362,343		323,738

 

The accompanying notes are an integral part of the financial statements.

130

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-R2, Class 1AF1
2.8119% due 06/25/2035 (b)(h)	$	157,419	$	130,758
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-HYB9, Class 5A1
5.25% due 02/20/2036 (b)		670,225		511,222
Countrywide Home Loans,
Series 2004-12, Class 12A1
4.7108% due 08/25/2034 (b)		1,125,143		1,020,000
Countrywide Home Loans,
Series 2004-25, Class 1A1
2.8019% due 02/25/2035 (b)		294,200		205,907
Countrywide Home Loans,
Series 2004-25, Class 2A1
2.8119% due 02/25/2035 (b)		347,168		250,262
Countrywide Home Loans,
Series 2005-HYB9, Class 3A2A
5.25% due 02/20/2036 (b)		747,004		592,543
CS First Boston Mortgage Securities Corp., Series 2003-AR18, Class 2A3
5.0838% due 07/25/2033 (b)		40,338		38,102
CS First Boston Mortgage Securities Corp., Series 2003-AR20, Class 2A1
4.5571% due 08/25/2033 (b)		398,540		390,305
CSAB Mortgage Backed Trust,
Series 2006-1, Class A1A
2.5719% due 06/25/2036 (b)		63,416		63,257
Federal Home Loan Mortgage Corp., Series T-63, Class 1A1
4.4901% due 02/25/2045 (b)		322,945		292,482
Federal Home Loan Mortgage Corp.,
Series 2003-2631, Class PC
4.50% due 03/15/2016		5,759,958		5,800,418
Federal Home Loan Mortgage Corp.,
Series 2004-2770, Class YW
4.00% due 06/15/2022		349,461		350,012
Federal Home Loan Mortgage Corp.,
Series 2004-2895, Class F
2.8169% due 06/15/2031 (b)		660,734		645,201
Federal Home Loan Mortgage Corp.,
Series 2005-2987, Class HD
4.50% due 07/15/2018		3,496,356		3,497,801
Federal Home Loan Mortgage Corp.,
Series 2006-3117, Class PN
5.00% due 11/15/2021		551,573		556,011
Federal National Mortgage Association, Series
2003-W6, Class F
2.8219% due 09/25/2042 (b)		708,847		698,308
Federal National Mortgage Association, Series
2005-120, Class NF
2.5719% due 01/25/2021 (b)		459,351		451,187
Federal National Mortgage Association, Series
2006-15, Class FC
2.6019% due 03/25/2036 (b)		1,164,008		1,157,350
Federal National Mortgage Association, Series
2006-16, Class FC
2.7719% due 03/25/2036 (b)		2,354,162		2,286,005

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
Federal National Mortgage Association, Series
2006-5, Class 3A2
4.6669% due 02/25/2036 (b)	$	1,105,806	$	1,098,030
First Horizon Asset Securities, Inc., Series
2003-AR2, Class 2A1
4.4263% due 07/25/2033 (b)		93,684		92,273
First Horizon Asset Securities, Inc., Series
2003-AR4, Class 2A1
4.3818% due 12/25/2033 (b)		262,074		247,261
First Horizon Asset Securities, Inc., Series
2005-AR3, Class 2A1
5.3631% due 08/25/2035 (b)		176,342		159,781
First Republic Mortgage Loan Trust,
Series 2001-FRB1, Class A
2.8169% due 11/15/2031 (b)		385,423		357,004
GMAC Mortgage Corp. Loan Trust, Series
2004-AR1, Class 22A
4.2892% due 06/25/2034 (b)		29,929		21,795
GMAC Mortgage Corp. Loan Trust,
Series 2004-J4, Class A1
5.50% due 09/25/2034		938,016		921,821
Greenpoint Mortgage Funding Trust, Series 2006-AR6, Class A1A
2.5519% due 10/25/2046 (b)		2,043,260		1,755,031
Greenpoint Mortgage Pass-Through Certificates, Series 2003-1, Class A1
4.6795% due 10/25/2033 (b)		27,605		26,270
GS Mortgage Securities Corp., Series 2003-1, Class A2
3.1719% due 01/25/2032 (b)		355,979		295,136
GSR Mortgage Loan Trust, Series 2003-1, Class A2
4.5113% due 03/25/2033 (b)		258,329		244,573
Harborview Mortgage Loan Trust, Series 2003-1, Class A
5.1738% due 05/19/2033 (b)		404,276		382,667
Harborview Mortgage Loan Trust, Series 2005-4, Class 3A1
5.1458% due 07/19/2035 (b)		56,386		51,563
Harborview Mortgage Loan Trust, Series 2006-1, Class 2A1A
2.7056% due 03/19/2037 (b)		1,562,051		973,271
Harborview Mortgage Loan Trust, Series 2006-12, Class 2A11
2.5556% due 01/19/2038 (b)		1,145,089		1,048,908
Harborview Mortgage Loan Trust,
Series 2006-12, Class 2A2A
2.6556% due 01/19/2038		2,379,462		1,449,781
Impac Secured Assets Corp., Series 2006-4, Class A2A
2.5519% due 01/25/2037 (b)		1,222,756		1,150,050
Indymac Index Mortgage Loan Trust, Series
2004-AR11, Class 2A
5.0442% due 12/25/2034 (b)		97,110		81,702
JP Morgan Alternative Loan Trust, Series 2006-A6, Class 2A1
5.50% due 11/25/2036 (b)		760,695		584,148
JP Morgan Mortgage Trust, Series 2003-A2, Class 3A1
4.3836% due 11/25/2033 (b)		298,251		291,208

 

The accompanying notes are an integral part of the financial statements.

131

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
JP Morgan Mortgage Trust, Series 2005-A1, Class 6T1
5.0228% due 02/25/2035 (b)	$	572,280	$	509,181
JP Morgan Mortgage Trust,
Series 2004-S1, Class 1A3
4.50% due 08/25/2019		1,652,955		1,633,954
Lehman XS Trust, Series 2006-4N, Class A1A
2.5519% due 04/25/2046 (b)		171,932		170,553
Mastr Adjustable Rate Mortgages Trust, Series
2004-6, Class 4A4
4.1262% due 07/25/2034 (b)		303,383		291,671
Mellon Residential Funding Corp., Series
2000-TBC3, Class A1
2.9069% due 12/15/2030 (b)		1,076,767		999,207
Merrill Lynch Mortgage Investors, Inc., Series
2003-A2, Class 1A1
6.0273% due 02/25/2033 (b)		167,926		164,832
Merrill Lynch Mortgage Investors, Inc., Series
2005-2, Class 1A
4.25% due 10/25/2035 (b)		1,442,265		1,366,111
Merrill Lynch Mortgage Investors, Inc., Series
2005-A8, Class A3A2
2.7219% due 08/25/2036 (b)		247,966		174,786
Merrill Lynch Mortgage Investors, Inc.,
Series 2003-C, Class A1
2.8019% due 06/25/2028 (b)		673,005		589,754
Merrill Lynch Mortgage Trust,
Series 2004-BPC1, Class A1
3.585% due 10/12/2041		325,752		323,716
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-5, Class A4
5.378% due 08/12/2048		900,000		800,163
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-8, Class A3
6.1557% due 08/12/2049 (b)		2,000,000		1,849,884
Puma Finance, Ltd., Series 2006-G5, Class A1
2.8813% due 02/21/2038 (b)		1,767,500		1,687,963
Residential Accredit Loans, Inc., Series 2006-QO6, Class A1
2.6519% due 06/25/2046 (b)		2,786,347		1,712,905
Residential Accredit Loans, Inc., Series 2007-QO2, Class A1
2.6219% due 02/25/2047 (b)		641,281		347,307
Residential Accredit Loans, Inc.,
Series 2006-QO3, Class A1
2.6819% due 04/25/2046 (b)		1,835,647		1,161,699
Residential Asset Securitization Trust, Series
2005-A15, Class 5A1
5.75% due 02/25/2036		372,049		292,272
Residential Asset Securitization Trust, Series
2006-R1, Class A2
2.8719% due 01/25/2046 (b)		730,728		515,132
Residential Funding Mortgage Securities I, Series 2005-SA4, Class 1A21
5.2081% due 09/25/2035 (b)		206,451		179,331
Sequoia Mortgage Trust, Series 5, Class A
2.8156% due 10/19/2026 (b)		277,255		252,013

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A1
4.18% due 02/25/2034 (b)	$	208,409	$	178,414
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A2
4.58% due 02/25/2034 (b)		1,146,252		1,032,251
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-12, Class 7A1
5.21% due 09/25/2034 (b)		925,960		860,233
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-19, Class 2A1
4.255% due 01/25/2035 (b)		879,226		593,510
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-4, Class 3A2
4.59% due 04/25/2034 (b)		441,392		409,228
Structured Asset Mortgage Investments, Inc.,
Series 2006-AR3, Class 12A1
2.6919% due 05/25/2036 (b)		2,080,534		1,277,247
Thornburg Mortgage Securities Trust, Series
2006-5, Class A1
2.5919% due 08/25/2036 (b)		2,011,249		1,937,405
Wachovia Bank Commercial Mortgage Trust,
Series 2005-C17, Class APB
5.037% due 03/15/2042		1,700,000		1,651,050
WaMu Mortgage Pass Through Certificates, Series 2003-AR9, Class 1A5
4.1591% due 09/25/2033 (b)		1,615,642		1,614,364
WaMu Mortgage Pass Through Certificates, Series 2003-AR9, Class 1A6
4.1591% due 09/25/2033 (b)		4,000,000		4,005,748
WaMu Mortgage Pass Through Certificates, Series 2004-AR9, Class A7
4.132% due 08/25/2034 (b)		1,500,000		1,484,023
WaMu Mortgage Pass Through Certificates, Series 2006-AR19, Class 1A
3.819% due 01/25/2047 (b)		680,027		389,195
WaMu Mortgage Pass-Through Certificates, Series 2002-AR17, Class 1A
4.279% due 11/25/2042 (b)		480,518		445,118
WaMu Mortgage Pass-Through Certificates, Series 2003-AR5, Class A7
4.5652% due 06/25/2033 (b)		136,283		132,777
WaMu Mortgage Pass-Through Certificates, Series 2005-AR13, Class A1A1
2.7619% due 10/25/2045 (b)		208,916		132,076
WaMu Mortgage Pass-Through Certificates, Series 2005-AR2, Class 2A1A
2.7819% due 01/25/2045 (b)		358,603		241,122
WaMu Mortgage Pass-Through Certificates, Series 2005-AR6, Class 2A1A
2.7019% due 04/25/2045 (b)		612,624		404,025
WaMu Mortgage Pass-Through Certificates, Series 2006-AR17, Class 1A1A
3.889% due 12/25/2046 (b)		499,601		317,057
WaMu Mortgage Pass-Through Certificates, Series 2006-AR3, Class A1A
4.079% due 02/25/2046 (b)		1,159,252		729,476

 

The accompanying notes are an integral part of the financial statements.

132

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
WaMu Mortgage Pass-Through Certificates,
Series 2003-R1, Class A1
3.0119% due 12/25/2027 (b)	$	1,116,695	$	953,889
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2006-AR5, Class 3A 4.019% due 07/25/2046 (b)		472,041		270,331
Wells Fargo Mortgage Backed Securities Trust,
Series 2004-S, Class A1
3.5518% due 09/25/2034 (b)		2,091,114		1,951,143
Wells Fargo Mortgage Backed Securities Trust,
Series 2006-AR2, Class 2A1
4.95% due 03/25/2036 (b)		2,291,040		2,049,053
				113,737,903
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $150,437,109)			$	134,971,976
ASSET BACKED SECURITIES - 9.03%
Ireland - 0.71%
Cars Alliance Funding PLC, Series 2007-1, Class A
5.079% due 10/08/2023 (b)	EUR	1,700,000		2,410,913
SC Germany Auto, Series 2007-1, Class A
4.557% due 08/11/2015 (b)		1,199,834		1,738,931
				4,149,844
Italy - 0.22%
Locat Securitisation Vehicle Srl, Series 2006-4, Class A2
5.12% due 12/12/2028 (b)		900,000		1,260,075
Luxembourg - 0.35%
Silver Arrow SA, Series 2006-2, Class A
4.555% due 08/15/2014 (b)		1,410,859		2,058,625
United States - 7.75%
Access Group, Inc., Series 2008-1, Class A
4.093% due 10/27/2025 (b)	$	2,700,000		2,673,000
ACE Securities Corp.,
Series 2006-ASP4, Class A2A
2.5219% due 08/25/2036 (b)		355,786		353,659
ACE Securities Corp., Series 2006-NC1, Class A2B
2.6219% due 12/25/2035 (b)		1,416,188		1,389,980
American Express Credit Account Master Trust, Series 2006-A, Class A
2.4569% due 08/15/2011 (b)		2,000,000		1,995,104
Argent Securities, Inc., Series 2006-M2, Class A2A
2.5219% due 09/25/2036 (b)		658,723		653,321
Asset Backed Funding Certificates,
Series 2006-OPT1, Class A3A
2.5119% due 09/25/2036 (b)		40,734		40,431
BA Credit Card Trust, Series 2006-A9, Class A9
2.4769% due 02/15/2013 (b)		3,400,000		3,322,499
Capital Auto Receivables Asset Trust, Series
2008-2, Class A2B
3.3869% due 03/15/2011 (b)		500,000		499,922
Citigroup Commercial Mortgage Trust, Series
2006-FL2, Class A1
2.5369% due 10/01/2036 (b)(h)		43,684		41,819

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
United States (continued)
Countrywide Asset-Backed Certificates,
Series 2006-25, Class 2A1
2.5419% due 06/25/2037 (b)	$	1,697,561	$	1,634,027
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF15, Class A3
2.5219% due 11/25/2036 (b)		1,570,022		1,478,520
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF18, Class A2A
2.5419% due 12/25/2037 (b)		1,532,974		1,467,605
Ford Credit Auto Owner Trust, Series 2008-C, Class A2B
3.3669% due 01/15/2011 (b)		1,700,000		1,695,867
Franklin Auto Trust, Series 2008-A, Class A2
3.4706% due 10/20/2011 (b)		1,700,000		1,692,222
GSAMP Trust, Series 2006-SD1, Class A1
2.5919% due 12/25/2035 (b)(h)		44,781		44,690
GSR Mortgage Loan Trust, Series 2005-HEL1, Class A2A
2.5719% due 11/25/2030 (b)		34,945		34,113
Home Equity Mortgage Trust,
Series 2006-1, Class A1A1
5.595% due 05/25/2036 (b)		185		185
Honda Auto Receivables Owner Trust, Series
2008-1, Class A2
3.77% due 09/20/2010		1,700,000		1,695,524
HSI Asset Securitization Corp. Trust, Series
2006-HE2, Class 2A1
2.5219% due 12/25/2036 (b)		1,711,472		1,572,536
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2006-CB17, Class A4
5.429% due 12/12/2043		1,100,000		1,003,597
JP Morgan Mortgage Acquisition Corp., Series
2006-WMC3, Class A2
2.5219% due 08/25/2036 (b)		733,487		721,655
Lehman Brothers Floating Rate Commercial Mortgage Trust, Series 2006-LLFA, Class A1
2.5469% due 09/15/2021 (b)(h)		346,724		326,387
Lehman Brothers-UBS
Commercial Mortgage Trust,
Series 2003-C1, Class A2
3.323% due 03/15/2027		183,228		182,557
Long Beach Mortgage Loan Trust, Series 2004-4, Class 1A1
2.7519% due 10/25/2034 (b)		134,514		105,105
Mid-State Trust, Series 1995-4, Class A
8.33% due 04/01/2030		1,571,856		1,320,418
Morgan Stanley Capital I, Series 2006-NC2, Class A2B
2.5919% due 02/25/2036 (b)		1,590,345		1,572,580
Nelnet Student Loan Trust, Series 2008-4, Class A1
3.33% due 04/27/2015 (b)		1,799,911		1,803,206
New Century Home Equity Loan Trust,
Series 2005-D, Class A2B
2.6419% due 02/25/2036 (b)		528,890		527,699
Nomura Asset Acceptance Corp., Series 2006-S1, Class A1
2.6119% due 01/25/2036 (b)(h)		75,779		65,613

 

The accompanying notes are an integral part of the financial statements.

133

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
United States (continued)
Residential Asset Mortgage Products, Inc., Series 2006-RZ5, Class A1A
2.5719% due 08/25/2046 (b)	$	1,240,822	$	1,191,471
Residential Asset Securities Corp., Series
2006-KS6, Class A1
2.5119% due 08/25/2036 (b)		45,191		45,057
Residential Asset Securities Corp., Series 2006-KS9, Class AI1
2.5419% due 11/25/2036 (b)		1,038,547		1,026,310
Residential Asset Securities Corp., Series 2006-KS7, Class A1
2.5219% due 09/25/2036 (b)		79,388		79,262
SACO I, Inc., Series 2005-10, Class 1A
2.7319% due 11/25/2033 (b)		606,833		355,951
SLM Student Loan Trust, Series 2003-6, Class A4
2.9763% due 12/17/2018 (b)		544,542		534,485
SLM Student Loan Trust, Series 2008-9, Class A
4.1728% due 04/25/2023 (b)		5,900,000		5,876,061
Soundview Home Equity Loan Trust, Series 2006-EQ1, Class A1
2.5219% due 10/25/2036 (b)		350,849		347,807
Soundview Home Equity Loan Trust, Series 2006-EQ2, Class A1
2.5519% due 01/25/2037 (b)		1,050,481		1,026,528
Structured Asset Securities Corp., Series 2006-11, Class A1
5.3002% due 12/31/2036 (b)(h)		785,736		665,066
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4
5.572% due 10/15/2048 (b)		3,000,000		2,766,700
Wells Fargo Home Equity Trust,
Series 2005-2, Class AI1A
2.7019% due 10/25/2035 (b)(h)		715,545		690,538
Wells Fargo Home Equity Trust,
Series 2005-3, Class AII2
2.7119% due 11/25/2035 (b)(h)		692,664		677,255
				45,196,332
TOTAL ASSET BACKED SECURITIES (Cost $54,570,569)			$	52,664,876
PREFERRED STOCKS - 0.86%
United States - 0.86%
Bank of America Corp., 8.00%		5,600,000		4,990,630
TOTAL PREFERRED STOCKS (Cost $5,648,000)			$	4,990,630
TERM LOANS - 1.03%
United States - 1.03%
Chrysler Financial
9.00% due 08/03/2012 (b)		3,942,981		3,139,599
Ford Motor Company, Term B
5.48% due 11/29/2013		985,000		763,789
Georgia Pacific Corp.
4.448% due 12/20/2012 (b)		937,642		885,387

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
United States (continued)
HCA, Inc., Tranche B
5.0506% due 11/01/2013 (b)	$	1,280,500	$	1,200,072
				5,988,847
TOTAL TERM LOANS (Cost $6,999,251)			$	5,988,847
OPTIONS - 1.62%
Australia - 0.00%
Sydney Futures Exchange Purchase Call on Australian 3 yrs. Futures Expiration 09/12/2008 at $94.90 *		1,360,000		399
Germany - 0.24%
EUREX American Put on Euro-Bobl Futures
Expiration 11/21/2008 at $100.00 *		21,100,000		1,561
EUREX American Put on Euro-Bund Futures
Expiration 11/21/2008 at $103.00 *		33,700,000		4,980
Over The Counter European Purchase Call Option on the EUR vs. USD
Expiration 07/08/2010 at $1.392 *		7,300,000		668,303
Over The Counter European Purchase Put Option on the EUR vs. USD
Expiration 10/10/2008 at $1.255 *		90,000,000		32,877
Expiration 07/08/2010 at $1.392 *		7,300,000		460,132
Over The Counter European Style Call on EUR-LIBOR Rate Swaption
Expiration 09/14/2009 at $4.00 *		44,500,000		223,995
				1,391,848
United States - 1.38%
Chicago Board of Trade American Purchase Call on U.S. Treasury Bond Futures
Expiration 11/21/2008 at $140.00 *		47,000		734
Chicago Board of Trade American Purchase Call on U.S. Treasury Note 5 yrs. Futures
Expiration 11/21/2008 at $125.00 *		248,000		1,938
Chicago Board of Trade American Purchase Put on U.S. Treasury Bond Futures
Expiration 11/21/2008 at $89.00 *		317,000		4,953
Chicago Board of Trade American Purchase Put on U.S. Treasury Note 10 yrs. Futures
Expiration 11/21/2008 at $96.00 *		157,000		2,453
Expiration 11/21/2008 at $99.00 *		892,000		13,938
Over The Counter European Purchase Call on FG TBA, 5.50%
Expiration 11/06/2008 at $107.50 *		10,000,000		0
Over The Counter European Purchase Call on FNMA TBA, 6.00%
Expiration 10/07/2008 at $107.00 *		10,000,000		0
Over The Counter European Purchase Call on FNMA TBA, 6.50%
Expiration 09/04/2008 at $107.00 *		8,000,000		0
Expiration 10/07/2008 at $107.00 *		17,000,000		0
Over The Counter European Purchase Call on Treasury Note, 3.25%
Expiration 10/10/2008 at $103.9375 *		41,500,000		1
Over The Counter European Purchase Call Option on the EUR vs. USD
Expiration 05/19/2010 at $1.3665 *		1,600,000		177,126
Expiration 05/21/2010 at $1.3750 *		1,600,000		169,077

 

The accompanying notes are an integral part of the financial statements.

134

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or Principal Amount		Value
OPTIONS (continued)
United States (continued)
Over The Counter European Purchase Call Option on the USD vs. JPY
Expiration 03/17/2010 at $103.80 *		8,000,000	$	423,536
Over The Counter European Purchase Put on FG TBA, 5.00%
Expiration 09/04/2008 at $76.00 *		4,900,000		0
Over The Counter European Purchase Put on FG TBA, 6.00%
Expiration 09/04/2008 at $88.50 *		13,700,000		0
Over The Counter European Purchase Put on FNMA TBA, 5.50%
Expiration 11/06/2008 at $74.00 *		22,100,000		0
Expiration 09/04/2008 at $86.00 *		38,000,000		0
Over The Counter European Purchase Put on FNMA TBA, 6.00%
Expiration 09/04/2008 at $88.50 *		20,000,000		0
Over The Counter European Purchase Put on FNMA TBA, 6.50%
Expiration 09/04/2008 at $92.00 *		8,400,000		0
Over The Counter European Purchase Put on GNMA TBA, 6.00%
Expiration 09/15/2008 at $85.00 *		6,000,000		0
Over The Counter European Purchase Put on GNMA TBA, 6.50%
Expiration 11/21/2008 at $72.00 *		6,000,000		0
Expiration 10/15/2008 at $91.00 *		5,000,000		0
Expiration 10/15/2008 at $91.00 *		17,000,000		0
Expiration 09/15/2008 at $91.50 *		16,000,000		0
Over The Counter European Purchase Put Option on the EUR vs. USD
Expiration 05/19/2010 at $1.3665 *		1,600,000		73,923
Expiration 05/21/2010 at $1.3750 *		1,600,000		78,817
Over The Counter European Purchase Put Option on the USD vs. JPY
Expiration 03/17/2010 at $103.80 *		8,000,000		339,528
Over The Counter European Style Call on USD-LIBOR Rate Swaption
Expiration 08/03/2009 at $3.45 *		10,100,000		56,496
Expiration 08/03/2009 at $3.45 *		61,200,000		342,335
Expiration 08/03/2009 at $3.45 *		9,200,000		51,462
Expiration 08/03/2009 at $3.50 *		206,500,000		1,227,230
Expiration 08/03/2009 at $3.85 *		33,300,000		293,173
Expiration 07/06/2009 at $4.25 *		64,200,000		849,052
Expiration 09/08/2009 at $4.75 *		57,800,000		1,085,987
Expiration 08/28/2009 at $5.00 *		37,000,000		829,577
Expiration 08/28/2009 at $5.00 *		74,100,000		1,661,396
Expiration 08/28/2009 at $5.00 *		16,200,000		363,220
				8,045,952
TOTAL OPTIONS (Cost $8,072,058)			$	9,438,199
REPURCHASE AGREEMENTS - 1.58%
Deutsche Bank Tri-Party Repurchase Agreement dated 08/29/2008 at 1.98% to be repurchased at $5,501,210 on 09/02/2008, collateralized by $5,574,000 U.S. Treasury Notes, 2.0% due 02/28/2010 (valued at $5,615,199, including interest)	$	5,500,000	$	5,500,000

 

Global Bond Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS (continued)
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $3,733,705 on 09/02/2008, collateralized by $3,745,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $3,809,789, including interest)	$	3,733,000	$	3,733,000
TOTAL REPURCHASE AGREEMENTS (Cost $9,233,000)			$	9,233,000
SHORT TERM INVESTMENTS - 5.15%
Bank Scotland PLC
2.90% due 12/01/2008	$	22,000,000	$	21,838,728
U.S. Treasury Bills
zero coupon due 09/11/2008 to 11/28/2008		6,250,000		6,228,812
UBS Finance Delaware LLC
2.94% due 12/01/2008		2,000,000		1,985,137
TOTAL SHORT TERM INVESTMENTS (Cost $30,052,677)			$	30,052,677
Total Investments (Global Bond Fund) (Cost $1,025,938,904) - 170.48%			$	994,695,054
Liabilities in Excess of Other Assets - (70.48)%				(411,225,721	)
TOTAL NET ASSETS - 100.00%			$	583,469,333

 

Schedule of Securities Sold Short
	Shares or Principal Amount		Value
FEDERAL HOME LOAN MORTGAGE CORP. - 5.96%
Federal Home Loan Mortgage Corp.
5.50%, TBA **	$	10,000,000	$	9,859,380
TOTAL FEDERAL HOME LOAN MORTGAGE CORP. (Proceeds $9,618,359)			$	9,859,380
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 36.92%
Federal National Mortgage Association
6.00%, TBA **		30,000,000	$	30,258,593
6.50%, TBA **		30,000,000	$	30,846,093
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Proceeds $60,757,891)			$	61,104,686
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.45%
Government National Mortgage Association 6.00%, TBA **		4,000,000	$	4,058,752
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (Proceeds $4,027,500)			$	4,058,752

 

The accompanying notes are an integral part of the financial statements.

135

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
U.S. TREASURY BONDS - 1.52%
U.S. Treasury Bonds
5.00%, due 05/15/2037 (j)	$	2,300,000	$	2,514,726
TOTAL U.S. TREASURY BONDS (Proceeds $2,474,634)			$	2,514,726
U.S. TREASURY NOTES - 53.15%
U.S. Treasury Notes
3.25%, due 12/31/2009 (j)		41,500,000	$	42,077,099
3.375%, due 06/30/2013 (j)		24,800,000	$	25,148,738
4.25%, due 08/15/2013 (j)		15,600,000	$	16,448,250
3.50%, due 02/15/2018 (j)		1,900,000	$	1,862,891
3.875%, due 05/15/2018 (j)		2,400,000	$	2,415,562
TOTAL U.S. TREASURY NOTES (Proceeds $87,728,086)			$	87,952,540
Total Securities Sold Short (Global Bond Fund) (Proceeds $164,606,469)			$	165,490,084

 

Global Real Estate Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.81%
Australia - 10.59%
Abacus Property Group		187,738	$	202,458
Aspen Group, Ltd.		1,432,629		1,623,243
Becton Property Group		580,873		372,074
CFS Gandel Retail Trust		2,362,738		4,355,241
Charter Hall Group		1,858,592		1,405,941
Commonwealth Property Office Fund, Ltd.		800,776		952,063
Compass Hotel Group, Ltd. *		98,375		51,515
Dexus Property Group, REIT		3,800,222		4,782,105
FKP Property Group, Ltd.		241,882		926,152
General Property Trust, Ltd.		987,025		1,456,256
ING Industrial Fund		540,697		735,914
Macquarie Goodman Group, Ltd.		2,197,333		5,921,675
Macquarie Leisure Trust Group		818,157		1,329,421
Mirvac Group, Ltd.		1,098,900		2,696,171
Stockland Company, Ltd.		1,570,274		7,027,466
Valad Property Group		696,397		306,843
Westfield Group		2,056,198		30,173,110
				64,317,648
Austria - 0.26%
Conwert Immobilien Invest AG *		107,500		1,573,391
Brazil - 0.24%
Brasil Brokers Participacoes SA *		20,950		128,527
Construtora Tenda SA *		51,700		118,942
Iguatemi Empresa de Shopping Centers SA		91,900		1,071,227
Multiplan Empreendimentos Imobiliarios SA *		10,750		111,457
				1,430,153
Canada - 1.43%
Allied Properties Real Estate Investment Trust, REIT		89,550		1,731,458
Boardwalk Real Estate Investment Trust		74,300		2,729,045
Brookfield Properties Corp.		136,520		2,825,964

 

Global Real Estate Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Chartwell Seniors Housing Real Estate Investment Trust, REIT		190,500	$	1,429,916
				8,716,383
China - 0.42%
Shui On Land, Ltd. (a)		3,367,000		2,554,964
Finland - 0.61%
Sponda Oyj		225,000		1,790,801
Technopolis Oyj		250,000		1,913,133
				3,703,934
France - 4.00%
Fonciere Des Regions		26,000		2,964,343
ICADE		25,000		2,334,862
Klepierre SA		55,000		2,192,450
Societe de la Tour Eiffel		15,000		1,637,074
Unibail-Rodamco, REIT		26,637		5,523,214
Unibail-Rodamco, REIT		46,502		9,655,220
				24,307,163
Germany - 0.06%
Magnat Real Estate Opportunities GmbH & Company KGaA *		400,000		392,956
Guernsey - 0.19%
Camper & Nicholsons Marina Investments, Ltd. *		1,200,000		1,170,271
Hong Kong - 11.50%
China Overseas Land & Investment, Ltd. (a)		4,366,166		7,252,277
China Resources Land, Ltd.		2,519,000		2,949,118
Hang Lung Properties, Ltd. (a)		2,275,592		7,202,982
Henderson Land Development Company, Ltd.		1,273,000		7,673,653
Kerry Properties, Ltd.		1,443,803		6,884,750
Link, REIT		1,997,000		4,694,657
New World China Land, Ltd.		828,000		304,120
New World Development Company, Ltd.		3,719,863		5,645,838
Sino Land Company, Ltd.		396,000		693,176
Sun Hung Kai Properties, Ltd.		1,946,173		26,536,936
				69,837,507
India - 0.07%
DLF, Ltd.		41,000		451,498
Japan - 13.01%
Aeon Mall Company, Ltd.		170,400		4,883,904
Japan Real Estate Investment Corp., REIT		884		8,244,898
Japan Retail Fund Investment Corp., REIT		393		1,626,696
Mitsubishi Estate Company, Ltd.		1,191,000		26,307,855
Mitsui Fudosan Company, Ltd.		1,072,000		22,339,658
Nippon Building Fund, Inc., REIT		859		9,294,828
Sumitomo Realty & Development Company, Ltd.		319,000		6,350,088
				79,047,927
Netherlands - 0.73%
Corio NV		12,500		919,354
NR Nordic and Russia Properties, Ltd. *		1,750,000		1,745,790
ProLogis European Properties *		175,000		1,744,499
				4,409,643

 

The accompanying notes are an integral part of the financial statements.

136

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Real Estate Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Norway - 0.06%
Norwegian Property ASA		27,519	$	103,562
Scandinavian Property Development ASA *		120,590		239,056
				342,618
Singapore - 4.59%
Allgreen Properties, Ltd. (a)		1,903,000		1,070,684
Ascendas India Trust * (a)		3,399,959		1,715,515
Ascendas, REIT *		1,586,958		2,545,368
Capitaland, Ltd. (a)		1,956,000		5,974,393
CapitaMall Trust *		2,361,000		4,536,939
City Developments, Ltd. (a)		275,000		1,994,708
Hong Kong Land Holdings, Ltd. (a)		2,404,000		8,656,085
Suntec Real Estate Investment Trust *		1,336,000		1,367,571
				27,861,263
South Africa - 0.05%
Madison Property Fund Managers Holdings, Ltd. *		328,828		276,449
Sweden - 0.56%
Hufvudstaden AB		165,000		1,392,955
Klovern AB		300,000		994,080
Lennart Wallenstam Byggnads AB, Series B		65,000		1,031,596
				3,418,631
Switzerland - 0.12%
PSP Swiss Property AG *		12,500		757,064
United Kingdom - 8.30%
Aseana Properties, Ltd. *		1,000,000		507,792
Big Yellow Group PLC		375,505		2,329,618
British Land Company PLC		270,000		3,747,020
Capital & Regional PLC		734,876		2,471,264
Derwent Valley Holdings PLC		200,000		3,975,692
Equest Balkan Properties PLC		647,078		835,757
Great Portland Estates PLC (a)		500,000		3,330,424
Hammerson PLC		230,000		3,967,983
Hansteen Holdings PLC		750,000		1,283,210
Helical Bar PLC		450,000		2,622,528
Hirco PLC *		190,269		905,874
Land Securities Group PLC		315,000		7,782,397
Liberty International PLC		110,000		1,964,684
London & Stamford Property, Ltd.		620,000		1,193,676
Mapeley, Ltd.		70,000		1,403,788
Mucklow A & J Group PLC		37,820		162,600
North Real Estate Opportunities Fund, Ltd. *		600,000		840,620
Safestore Holdings, Ltd.		330,000		809,114
Segro PLC, REIT		380,000		3,022,413
South African Property Opportunities PLC *		1,250,000		1,594,995
Terrace Hill Group PLC		1,500,000		1,462,406
Unite Group PLC		1,009,663		4,216,960
				50,430,815
United States - 40.02%
American Campus Communities, Inc., REIT		100,100		3,035,032
Avalon Bay Communities, Inc., REIT		168,510		16,851,000
BioMed Realty Trust, Inc., REIT		287,590		7,701,660
Boston Properties, Inc., REIT		78,750		8,069,512
BRE Properties, Inc., Class A, REIT		118,400		5,710,432
Calloway Real Estate Investment Trust		32,000		638,915

 

Global Real Estate Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United States (continued)
Camden Property Trust, REIT		78,050	$	3,809,620
Digital Realty Trust, Inc., REIT		137,050		6,286,484
Douglas Emmett, Inc., REIT		204,750		4,846,433
Equity Lifestyle Properties, Inc., REIT		110,980		5,513,486
Equity Residential, REIT		177,000		7,469,400
Extendicare Real Estate Investment Trust *		158,200		1,172,569
Extra Space Storage, Inc., REIT		130,650		2,057,738
Federal Realty Investment Trust, REIT		158,440		12,022,427
General Growth Properties, Inc., REIT		237,650		6,162,265
Host Hotels & Resorts, Inc., REIT		604,960		8,650,928
Kimco Realty Corp., REIT		102,850		3,819,849
Liberty Property Trust, REIT		186,250		7,032,800
LTC Properties, Inc., REIT		83,030		2,231,016
Maguire Properties, Inc., REIT (a)		146,050		1,653,286
Medical Properties Trust, Inc., REIT (a)		176,622		1,949,907
Nationwide Health Properties, Inc., REIT		106,594		3,668,965
Post Properties, Inc., REIT		193,825		6,095,796
ProLogis, REIT		464,640		20,007,398
Public Storage, Inc., REIT		110,150		9,728,448
Regency Centers Corp., REIT		198,130		12,278,116
Saul Centers, Inc., REIT		18,450		843,534
Senior Housing Properties Trust, REIT		280,795		6,087,636
Simon Property Group, Inc., REIT		249,190		23,643,147
SL Green Realty Corp., REIT		4,300		369,800
Starwood Hotels & Resorts Worldwide, Inc.		41,339		1,498,539
Taubman Centers, Inc., REIT		140,000		6,795,600
The Macerich Company, REIT		80,650		4,994,655
Ventas, Inc., REIT		290,071		13,175,025
Vornado Realty Trust, REIT		173,526		17,258,896
				243,130,314
TOTAL COMMON STOCKS (Cost $646,626,888)			$	588,130,592
CONVERTIBLE BONDS - 0.02%
Germany - 0.02%
Colonia Real Estate AG, Series COLO
1.875% due 12/07/2011 EUR		167,300		136,700
TOTAL CONVERTIBLE BONDS (Cost $222,952)			$	136,700
SHORT TERM INVESTMENTS - 2.51%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	15,269,623	$	15,269,623
TOTAL SHORT TERM INVESTMENTS (Cost $15,269,623)			$	15,269,623

 

The accompanying notes are an integral part of the financial statements.

137

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Global Real Estate Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 0.64%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $3,863,730 on 09/02/2008, collateralized by $3,885,000 Federal Farm Credit Bank, 5.375% due 03/11/2019 (valued at $3,943,275, including interest)	$	3,863,000	$	3,863,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,863,000)			$	3,863,000
Total Investments (Global Real Estate Fund) (Cost $665,982,463) - 99.98%			$	607,399,915
Other Assets in Excess of Liabilities - 0.02%				120,851
TOTAL NET ASSETS - 100.00%			$	607,520,766

 

The portfolio had the following four top industry concentrations as of August 31, 2008 (as a percentage of total net assets):

Real Estate	94.78	%
Building Materials & Construction	1.11	%
Investment Companies	0.66	%
Hotels & Restaurants	0.26	%

 

High Income Fund
	Shares or Principal Amount		Value
CORPORATE BONDS - 63.51%
Advertising - 2.48%
R.H. Donnelley Corp.
6.875% due 01/15/2013	$	385,000	$	211,750
8.875% due 10/15/2017		5,910,000		3,043,650
R.H. Donnelley Corp., Series A-1
6.875% due 01/15/2013		2,890,000		1,575,050
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016		6,651,000		3,491,775
Vertis, Inc.
9.75% due 04/01/2009		3,108,000		2,579,640
10.875% due 06/15/2009		2,785,000		215,838
				11,117,703
Air Travel - 4.67%
Alaska Airlines, Inc., Series D
9.50% due 04/12/2012		95,227		97,845
American Airlines, Inc., Series 90-K
9.93% due 06/15/2010		512,000		443,520
American Airlines, Inc., Series 91B2
10.32% due 07/30/2014 (h)		971,425		743,140
AMR Corp., MTN, Series B
10.40% due 03/10/2011		4,500,000		3,240,000
Continental Airlines, Inc.
5.00% due 06/15/2023		4,975,000		5,132,111
Delta Air Lines, Inc., Series 01-1
7.711% due 03/18/2013		4,390,000		3,533,950
Gol Finance
8.75% due 12/31/2049 (h)		3,470,000		2,186,100

 

High Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Air Travel (continued)
Northwest Airlines
zero coupon due 01/16/2017	$	4,470,000	$	22,350
6.625% due 02/15/2023		15,690,000		78,450
7.625% due 11/15/2023		8,745,000		43,725
8.70% due 03/15/2049		2,055,000		10,275
8.875% due 06/01/2049		6,360,000		31,800
9.875% due 03/15/2037		7,045,000		35,225
10.00% due 02/01/2009		3,115,000		15,575
US Airways Group, Inc.
7.00% due 09/30/2020		5,920,000		5,291,296
				20,905,362
Auto Parts - 3.84%
Allison Transmission, Inc.
11.00% due 11/01/2015 (h)		7,840,000		7,212,800
11.25% due 11/01/2015 (h)		9,805,000		8,726,450
Tenneco Automotive, Inc.
8.625% due 11/15/2014		1,485,000		1,262,250
				17,201,500
Broadcasting - 8.19%
Canadian Satellite Radio Holdings, Inc.
12.75% due 02/15/2014		4,045,000		3,407,912
Canadian Satellite Radio Holdings, Inc., ADR
8.00% due 09/10/2014		1,700,000		1,280,844
Sirius Satellite Radio, Inc.
9.625% due 08/01/2013		7,152,000		5,596,440
XM Satellite Radio Holdings, Inc.
7.00% due 12/01/2014 (h)		7,275,000		7,275,000
13.00% due 08/01/2013		21,680,000		19,078,400
				36,638,596
Building Materials & Construction - 0.23%
Odebrecht Overseas, Ltd.
9.625% due 12/31/2049		1,006,000		1,021,090
Business Services - 0.24%
Allied Security Escrow Corp.
11.375% due 07/15/2011		276,000		291,525
MSX International UK
12.50% due 04/01/2012 (h)		1,185,000		805,800
				1,097,325
Cable & Television - 6.96%
Adelphia Communications Corp.
7.75% due 01/15/2009		3,000,000		251,250
9.875% due 03/01/2049		1,965,000		164,569
10.25% due 11/01/2049		985,000		82,494
CCH I Holdings LLC
11.125% due 01/15/2014		2,830,000		1,415,000
CCH II LLC / CCH II Capital Corp.
10.25% due 10/01/2013 (h)		1,449,000		1,285,987
Century Communications
8.375% due 12/15/2049		1,000,000		100
Charter Communications Holdings I LLC
9.92% due 04/01/2014		8,035,000		3,977,325
10.00% due 05/15/2014		3,980,000		1,970,100
11.75% due 05/15/2014		3,510,000		1,877,850
12.125% due 01/15/2015		2,925,000		1,579,500

 

The accompanying notes are an integral part of the financial statements.

138

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cable & Television (continued)
Charter Communications Holdings I LLC/Charter Communications Holdings I Capital Corp.
11.00% due 10/01/2015	$	13,145,000	$	10,088,787
Charter Communications Holdings LLC
8.75% due 11/15/2013		2,845,000		2,681,412
Charter Communications, Inc.
10.875% due 09/15/2014		2,680,000		2,814,000
Shaw Communications, Inc.
8.25% due 04/11/2010		18,000		18,473
Young Broadcasting, Inc.
10.00% due 03/01/2011		8,135,000		2,928,600
				31,135,447
Cellular Communications - 2.80%
American Tower Corp.
5.00% due 02/15/2010		441,000		445,891
Centennial Communications Corp.
8.5413% due 01/01/2013 (b)		600,000		597,000
10.00% due 01/01/2013		3,475,000		3,614,000
Cricket Communications, Inc.
9.375% due 11/01/2014		4,400,000		4,361,500
MetroPCS Wireless, Inc.
9.25% due 11/01/2014		3,565,000		3,533,806
				12,552,197
Chemicals - 1.92%
American Pacific Corp.
9.00% due 02/01/2015		7,225,000		7,008,250
Tronox Worldwide LLC
9.50% due 12/01/2012		3,255,000		1,578,675
				8,586,925
Containers & Glass - 2.32%
BWAY Corp.
10.00% due 10/15/2010		755,000		751,225
Graphic Packaging International Corp.
9.50% due 08/15/2013		4,910,000		4,615,400
Pliant Corp.
11.125% due 09/01/2009		552,000		405,720
11.85% due 06/15/2009		958,910		896,581
Smurfit-Stone Container Enterprises, Inc.
8.00% due 03/15/2017		4,210,000		3,368,000
US Corrugated, Inc.
10.00% due 06/12/2013		460,000		331,200
				10,368,126
Drugs & Health Care - 0.68%
Duane Reade, Inc.
9.75% due 08/01/2011		3,450,000		3,053,250
Electrical Utilities - 3.10%
CMS Energy Corp.
8.50% due 04/15/2011		37,000		38,910
Orion Power Holdings, Inc.
12.00% due 05/01/2010		2,945,000		3,180,600
Texas Competitive Electric Holdings Company LLC
10.25% due 11/01/2015 (h)		10,680,000		10,653,300
				13,872,810

 

High Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electronics - 0.61%
Muzak LLC/Muzak Finance Corp.
9.875% due 03/15/2009	$	919,000	$	813,315
10.00% due 02/15/2009		2,170,000		1,923,162
				2,736,477
Energy - 0.52%
Exide Technologies, Series B
11.50% due 03/15/2013		2,430,000		2,308,500
Financial Services - 0.49%
TAM Capital, Inc.
7.375% due 04/25/2017		2,090,000		1,630,200
Ucar Finance, Inc.
10.25% due 02/15/2012		564,000		580,920
				2,211,120
Food & Beverages - 1.12%
ASG Consolidated LLC/ASG Finance, Inc. zero coupon, step up to 11.50% on
11/01/2008 due 11/01/2011		4,360,000		4,011,200
Dole Food Company, Inc.
7.25% due 06/15/2010		1,100,000		1,017,500
				5,028,700
Healthcare Products - 0.07%
Inverness Medical Innovations, Inc.
9.0925% due 06/26/2015 (b)		320,000		298,000
Holdings Companies/Conglomerates - 0.63%
UAL Corp.
4.50% due 06/30/2021 (h)		5,080,000		2,829,916
Homebuilders - 0.01%
Meritage Homes Corp.
7.00% due 05/01/2014		18,000		14,310
Standard Pacific Corp.
6.50% due 10/01/2008		37,000		36,723
				51,033
Hotels & Restaurants - 0.20%
Buffalo Thunder Development Authority
9.375% due 12/15/2014 (h)		1,595,000		893,200
Household Products - 0.73%
Yankee Acquisition Corp., Series B
8.50% due 02/15/2015		4,225,000		3,253,250
Insurance - 0.45%
MBIA Insurance Company
14.00% due 01/15/2033 (b)(h)		2,515,000		2,037,150
International Oil - 0.35%
Dominion Petroleum Acquisitions
10.00% due 10/01/2011		1,685,000		1,576,823
Leisure Time - 9.54%
Fontainebleau Las Vegas Holdings
10.25% due 06/15/2015 (h)		7,355,000		3,475,237
Fontainebleau Senior Note
12.50% due 06/01/2022		3,269,300		1,219,449
Greektown Holdings LLC
10.75% due 12/01/2013 (h)		6,854,000		5,174,770
Indianapolis Downs Capital LLC
11.00% due 11/01/2012 (h)		1,110,000		882,450

 

The accompanying notes are an integral part of the financial statements.

139

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Leisure Time (continued)
Isle of Capri Casinos, Inc.
7.00% due 03/01/2014	$	14,751,000	$	10,546,965
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		1,800,000		1,278,000
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 (h)		3,150,000		2,622,375
Majestic Star Casino LLC
9.50% due 10/15/2010		5,910,000		3,575,550
9.75% due 01/15/2011		4,515,000		462,787
Marquee Holdings, Inc.
9.505 due 08/15/2014		820,000		651,900
Mashantucket Western Pequot Tribe
8.50% due 11/15/2015 (h)		4,740,000		3,460,200
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		2,720,000		2,237,200
9.75% due 04/01/2010		95,000		92,387
Seminole Hard Rock Entertainment, Inc.
5.2762% due 03/15/2014 (b)(h)		805,000		644,000
Travelport LLC
11.875% due 09/01/2016		715,000		538,038
Trump Entertainment Resorts, Inc.
8.50% due 06/01/2015		12,695,000		5,807,963
				42,669,271
Manufacturing - 0.55%
Sequa Corp.
11.75% due 12/01/2015 (h)		955,000		840,400
Vitro SAB de CV
9.125% due 02/01/2017		2,075,000		1,608,125
				2,448,525
Metal & Metal Products - 2.47%
Blaze Recycling & Metals LLC
10.875% due 07/15/2012 (h)		705,000		713,812
CII Carbon LLC
11.125% due 11/15/2015 (h)		10,510,000		10,352,350
				11,066,162
Mining - 0.09%
Drummond Company, Inc.
7.375% due 02/15/2016 (h)		470,000		414,775
Paper - 1.23%
Abitibi-Consolidated Company of Canada
6.00% due 06/20/2013		1,620,000		656,100
7.75% due 06/15/2011		2,051,000		943,460
8.375% due 04/01/2015		2,850,000		1,168,500
13.75% due 04/01/2011 (h)		385,000		404,250
15.50% due 07/15/2010 (h)		360,000		271,800
Abitibi-Consolidated, Inc.
7.40% due 04/01/2018		500,000		185,000
7.50% due 04/01/2028		347,000		122,317
Jefferson Smurfit Corp.
8.25% due 10/01/2012		740,000		643,800
Newark Group, Inc.
9.75% due 03/15/2014		1,581,000		766,785
Norske Skog Canada, Ltd.
7.375% due 03/01/2014		441,000		309,803
Pope & Talbot, Inc.
8.375% due 06/01/2013		400,000		4,000

 

High Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Paper (continued)
Pope & Talbot, Inc. (continued)
8.375% due 06/01/2013	$	1,800,000	$	18,000
				5,493,815
Publishing - 2.35%
Idearc, Inc.
8.00% due 11/15/2016		17,025,000		7,703,813
Quebecor World Capital Corp.
6.125% due 11/15/2013		3,255,000		1,163,662
8.75% due 03/15/2016 (h)		560,000		247,800
Quebecor World, Inc.
9.75% due 01/15/2015 (h)		3,155,000		1,419,750
				10,535,025
Real Estate - 0.07%
Realogy Corp.
10.50% due 04/15/2014		505,000		297,950
Retail - 0.74%
Eye Care Centers of America
10.75% due 02/15/2015		1,545,000		1,593,281
Jo-Ann Stores, Inc.
7.50% due 03/01/2012		1,099,000		1,031,687
Steinway Musical Instruments, Inc.
7.00% due 03/01/2014 (h)		745,000		666,775
				3,291,743
Telecommunications Equipment & Services - 1.61%
Digicel Group, Ltd.
8.875% due 01/15/2015 (h)		3,815,000		3,581,522
Mobile Satellite Ventures LP
zero coupon, Step up to 14.00% on 04/01/2010 due 04/01/2013 (h)		1,190,000		731,850
Terrestar Networks, Inc., PIK
15.00% due 02/15/2014 (h)		1,323,557		1,019,139
West Corp.
11.00% due 10/15/2016		2,365,000		1,850,612
				7,183,123
Tobacco - 1.47%
Alliance One International, Inc.
11.00% due 05/15/2012		2,150,000		2,187,625
12.75% due 11/15/2012		2,330,000		2,353,300
North Atlantic Trading Company
10.00% due 03/01/2012 (h)		2,626,750		2,022,597
				6,563,522
Travel Services - 0.78%
Travelport LLC
9.875% due 09/01/2014		4,250,000		3,474,375
TOTAL CORPORATE BONDS (Cost $350,739,465)			$	284,212,786
CONVERTIBLE BONDS - 4.38%
Air Travel - 3.58%
AMR Corp.
4.50% due 02/15/2024		4,683,000		4,384,459
Pinnacle Airlines Corp.
3.25% due 02/15/2025		1,535,000		1,074,193

 

The accompanying notes are an integral part of the financial statements.

140

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Income Fund (continued)
	Shares or Principal Amount		Value
CONVERTIBLE BONDS (continued)
Air Travel (continued)
UAL Corp.
4.50% due 06/30/2021	$	18,926,000	$	10,543,107
				16,001,759
Broadcasting - 0.75%
XM Satellite Radio Holdings, Inc.
10.00% due 12/01/2009		3,585,000		3,347,142
Cable & Television - 0.05%
Charter Communications, Inc.
6.50% due 10/01/2027		604,000		237,339
TOTAL CONVERTIBLE BONDS (Cost $25,192,179)			$	19,586,240
COLLATERALIZED MORTGAGE OBLIGATIONS - 3.94%
Countrywide Alternative Loan Trust, Series
2007-OA9, Class B1
4.22% due 06/25/2047 (b)(h)		1,076,122		34,974
Countrywide Alternative Loan Trust, Series
2007-OA9, Class B2
4.22% due 06/25/2047 (b)(h)		320,555		7,213
Countrywide Alternative Loan Trust, Series
2007-OA9, Class B3
4.22% due 06/25/2047 (b)(h)		607,894		1,520
Countrywide Alternative Loan Trust, Series
2007-OA9, Class XP
3.8634% IO due 06/25/2047		50,423,867		2,592,105
DSLA Mortgage Loan Trust, Series 2005-AR5, Class X2
2.764% IO due 08/19/2045		53,479,697		1,570,966
Global Tower Partners Acquisition LLC, Series 2007-1A, Class G
7.8737% due 05/15/2037 (h)		515,000		461,468
GS Mortgage Securities Corp., Series 2006-NIM3, Class OS
zero coupon due 10/26/2037		5,000		662,500
Harborview Mortgage Loan Trust, Series
2006-BU1, Class R
zero coupon due 02/19/2046		186,595,756		7,000,009
Harborview Mortgage Loan Trust,
Series 2007-3, Class ES
0.35% IO due 05/19/2047		70,727,397		442,046
Harborview Mortgage Loan Trust,
Series 2007-4, Class ES
0.35% IO due 07/19/2047		71,277,122		467,756
Harborview Mortgage Loan Trust,
Series 2007-6, Class ES
0.3425% IO due 08/19/2037 (h)		49,603,522		310,022
Lehman XS Net Interest Margin Notes, Series 2007-GPM8, Class A3
9.00% due 01/28/2047 (h)		317,665		215,059
Lehman XS Net Interest Margin Notes, Series 2007-GPM8, Class A4
9.00% due 01/28/2047 (h)		470,000		50,525
SBA CMBS Trust, Series 2006-1A, Class H
7.389% due 11/15/2036 (h)		1,750,000		1,676,035
SBA CMBS Trust, Series 2006-1A, Class J
7.825% due 11/15/2036 (h)		1,325,000		1,212,841

 

High Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2005-AR19, Class B1
3.1719% due 12/25/2045 (b)	$	3,024,308	$	943,912
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $20,897,800)			$	17,648,951
ASSET BACKED SECURITIES - 0.76%
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (h)		1,525,000		1,163,773
Dominos Pizza Master Issuer LLC, Series 2007-1, Class M1
7.629% due 04/25/2037 (h)		3,560,000		2,225,000
TOTAL ASSET BACKED SECURITIES (Cost $5,099,919)			$	3,388,773
COMMON STOCKS - 10.02%
Air Travel - 4.26%
Northwest Airlines *		1,690,612		16,534,185
UAL Corp. *		47,000		522,170
US Airways Group, Inc. *		234,532		1,991,177
				19,047,532
Auto Parts - 0.11%
Federal Mogul Corp. *		31,002		506,883
Broadcasting - 1.71%
Canadian Satellite Radio Holdings, Inc. *		584,572		2,009,501
Sirius XM Radio, Inc. *		4,226,931		5,621,818
				7,631,319
Cable & Television - 2.70%
Adelphia Recovery Trust, Series ACC-1 *		5,806,367		188,707
Adelphia Recovery Trust, Series Arahova *		424,949		148,732
Canadian Satellite Radio Holdings, Series A *		19,442		66,833
Charter Communications, Inc., Class A *		414,100		434,805
Comcast Corp., Special Class A		347,333		7,342,620
Time Warner Cable, Inc. *		145,469		3,891,296
				12,072,993
Cellular Communications - 0.25%
USA Mobility, Inc. *		100,901		1,137,154
Commercial Services - 0.04%
Paragon Shipping, Inc. * (h)		12,000		181,920
Forest Products - 0.03%
Tembec, Inc. *		52,800		137,743
International Oil - 0.24%
Dominion Petroleum, Ltd., GDR *		3,840,994		1,085,242
Leisure Time - 0.05%
Fontainebleau Resorts LLC, Class A *		65,203		215,170
Telephone - 0.63%
Sprint Nextel Corp.		321,650		2,804,788
TOTAL COMMON STOCKS (Cost $67,662,106)			$	44,820,744
PREFERRED STOCKS - 4.52%
Air Travel - 2.67%
Continental Airlines Finance Trust II, 6.00%		497,759		11,939,994

 

The accompanying notes are an integral part of the financial statements.

141

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Income Fund (continued)
	Shares or Principal Amount		Value
PREFERRED STOCKS (continued)
Cellular Communications - 0.70%
Rural Cellular Corp., 12.25%		2,254	$	3,147,711
Containers & Glass - 0.01%
Pliant Corp., Series AA, 13.00% *		685		41,785
Financial Services - 1.14%
CIT Group, Inc., 7.75% *		86,874		1,002,526
iStar Financial, Inc., Series E, 7.875%		190,000		2,433,900
iStar Financial, Inc., Series G, 7.65%		11,455		131,160
iStar Financial, Inc., Series I, 7.50%		139,000		1,556,800
				5,124,386
TOTAL PREFERRED STOCKS (Cost $19,995,108)			$	20,253,876
TERM LOANS - 9.34%
Air Travel - 4.60%
Delta Airlines, Inc.
4.344% due 04/30/2012 (b)		1,544,400		1,291,504
5.7125% due 04/30/2014 (b)(l)		6,977,481		5,037,323
Northwest Airlines
4.811% due 08/21/2013 (l)		2,230,000		1,841,155
US Airways Group, Inc.
4.9625% due 03/26/2014 (b)(l)		17,877,000		12,435,777
				20,605,759
Broadcasting - 0.07%
Sirius Satellite Radio, Inc.
4.9375% due 12/20/2012 (b)		332,488		297,576
Forest Products - 0.04%
Tembec, Inc.
9.4631% due 02/28/2012 (b)		180,000		166,725
Leisure Time - 0.16%
East Valley Tourist Development
9.94% due 08/06/2012 (b)		765,000		734,400
Medical-Hospitals - 0.57%
Ralin Medical, Inc. zero coupon due 11/21/2037		170		2,550,000
Newspapers - 0.30%
Star Tribune Corp.
5.0506% due 03/01/2014 (b)		2,834,125		1,133,650
10.83% due 03/01/2015 (b)(l)		3,880,000		194,000
				1,327,650
Paper - 0.08%
AbitibiBowater, Inc.
11.50% due 03/31/2009 (b)		338,226		337,699
Publishing - 1.14%
Idearc, Inc.
4.47% due 04/11/2017 (b)		7,297,633		5,112,503
Real Estate - 0.25%
Realogy Corp.
5.4619% due 10/10/2013 (b)		1,485,000		1,113,750
Trucking & Freight - 2.13%
Saint Acquisition Corp.
6.0625% due 05/06/2014 (b)(l)		12,800,000		9,536,000
TOTAL TERM LOANS (Cost $46,828,416)			$	41,782,062

 

High Income Fund (continued)
	Shares or Principal Amount		Value
OPTIONS - 1.16%
Air Travel - 0.66%
Delta Airlines, Inc.
Expiration 01/16/2010 at $5.00		350,000	$	1,802,500
Expiration 01/16/2010 at $7.50		150,000		630,000
Expiration 01/16/2010 at $10.00		150,000		510,000
				2,942,500
Call Options - 0.50%
Comcast Corp.
Expiration 01/16/2010 at $15.00		43,700		327,750
Expiration 01/16/2010 at $20.00		161,500		646,000
Expiration 01/16/2010 at $25.00		8,450,000		169,000
Over The Counter Purchase Call on the USD vs. CAD
Expiration 04/20/2010 at $1.30		98,000,000		558,306
Expiration 04/01/2010 at $1.30		98,000,000		558,306
				2,259,362
TOTAL OPTIONS (Cost $5,566,002)			$	5,201,862
SHORT TERM INVESTMENTS - 4.17%
Federal Home Loan Bank Discount Notes
zero coupon due 09/02/2008	$	18,400,000	$	18,399,003
Quebecor World Capital Corp.
zero coupon due 11/15/2008		365,000		251,314
TOTAL SHORT TERM INVESTMENTS (Cost $18,650,317)			$	18,650,317
Total Investments (High Income Fund) (Cost $560,631,312) - 101.80%			$	455,545,611
Liabilities in Excess of Other Assets - (1.80)%				(8,074,182	)
TOTAL NET ASSETS - 100.00%			$	447,471,429

 

High Yield Fund
	Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS - 3.16%
Argentina - 0.09%
Republic of Argentina
1.00% due 12/15/2035 (b)	ARS	1,938,355	$	57,230
1.00% due 10/30/2009		175,000,000		28,215
1.2621% due 12/15/2035 (b)	EUR	587,000		64,415
1.3182% due 12/15/2035 (b)	$	48,000		4,704
7.00% due 09/12/2013		751,000		563,250
9.00% due 05/26/2009	EUR	100,000		33,742
11.75% due 05/20/2011		2,425,000		418,363
11.75% due 11/13/2026		1,800,000		297,063
				1,466,982
Brazil - 1.03%
Federative Republic of Brazil
6.00% due 05/15/2017	BRL	2,852,000		2,801,817
10.00% due 01/01/2012		5,845,000		3,284,291
10.00% due 07/01/2010		17,039,000		9,906,506
10.00% due 01/01/2010		1,000		591
				15,993,205

 

The accompanying notes are an integral part of the financial statements.

142

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Ecuador - 0.13%
Republic of Ecuador
9.375% due 12/15/2015	$	60,000	$	58,437
10.00% due 08/15/2030		2,222,000		1,966,470
				2,024,907
Indonesia - 0.29%
Republic of Indonesia
9.75% due 05/15/2037	IDR	11,122,000,000		953,955
10.25% due 07/15/2027		9,327,000,000		854,341
10.25% due 07/15/2022		14,706,000,000		1,386,739
11.00% due 09/15/2025		12,836,000,000		1,258,183
				4,453,218
Panama - 0.18%
Republic of Panama
9.375% due 04/01/2029	$	2,150,000		2,843,375
Peru - 0.12%
Republic of Peru
6.55% due 03/14/2037		648,000		664,200
7.35% due 07/21/2025		77,000		86,240
8.75% due 11/21/2033		862,000		1,114,135
				1,864,575
Turkey - 0.80%
Republic of Turkey
6.875% due 03/17/2036		10,496,000		9,774,400
7.00% due 06/05/2020		146,000		145,818
7.00% due 09/26/2016		535,000		547,706
7.375% due 02/05/2025		1,929,000		1,945,879
				12,413,803
Venezuela - 0.52%
Republic of Venezuela
5.75% due 02/26/2016		4,667,000		3,605,258
7.65% due 04/21/2025		949,000		723,612
8.50% due 10/08/2014		339,000		315,270
9.375% due 01/13/2034		1,588,000		1,381,560
10.75% due 09/19/2013		1,952,000		2,000,800
				8,026,500
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $51,188,206)			$	49,086,565
CORPORATE BONDS - 85.92%
Advertising - 0.13%
R.H. Donnelley Corp., Series A-1
6.875% due 01/15/2013		510,000		277,950
R.H. Donnelley Corp., Series A-2
6.875% due 01/15/2013		355,000		195,250
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016		1,960,000		1,029,000
R.H. Donnelley, Inc.
11.75% due 05/15/2015		680,000		499,800
				2,002,000
Aerospace - 0.59%
BE Aerospace, Inc.
8.50% due 07/01/2018		3,690,000		3,846,825

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Aerospace (continued)
DRS Technologies, Inc.
6.625% due 02/01/2016	$	5,205,000	$	5,361,150
				9,207,975
Air Travel - 0.92%
Continental Airlines, Inc.
6.541% due 09/15/2009		74,708		65,743
Continental Airlines, Inc., Series C
7.339% due 04/19/2014		4,060,000		3,045,000
DAE Aviation Holdings, Inc.
11.25% due 08/01/2015 (h)		11,600,000		11,194,000
				14,304,743
Airlines - 0.14%
Delta Air Lines, Inc.
8.954% due 08/10/2014		3,107,498		2,175,249
Aluminum - 0.61%
Novelis, Inc.
7.25% due 02/15/2015		10,236,000		9,493,890
Apparel & Textiles - 0.12%
Oxford Industries, Inc.
8.875% due 06/01/2011		1,925,000		1,872,062
Auto Parts - 1.42%
Allison Transmission, Inc.
11.00% due 11/01/2015 (a)(h)		2,790,000		2,566,800
11.25% due 11/01/2015 (h)		5,490,000		4,886,100
Keystone Automotive Operations, Inc.
9.75% due 11/01/2013		5,020,000		2,033,100
Visteon Corp.
8.25% due 08/01/2010		6,389,000		5,398,705
12.25% due 12/31/2016 (h)		10,525,000		7,209,625
				22,094,330
Auto Services - 1.51%
Ashtead Holdings PLC
8.625% due 08/01/2015 (h)		1,505,000		1,339,450
AutoNation, Inc.
4.7906% due 04/15/2013 (b)		2,430,000		2,004,750
7.00% due 04/15/2014		515,000		445,475
Hertz Corp.
10.50% due 01/01/2016		15,005,000		13,241,912
Penhall International Corp.
12.00% due 08/01/2014 (h)		8,930,000		6,429,600
				23,461,187
Automobiles - 1.12%
Ford Motor Company
7.45% due 07/16/2031		2,355,000		1,212,825
General Motors Corp.
7.20% due 01/15/2011		7,950,000		5,107,875
8.375% due 07/15/2033		22,305,000		11,040,975
				17,361,675
Banking - 1.71%
ATF Capital BV
9.25% due 02/21/2014 (h)		7,890,000		7,791,375
HSBC Bank PLC, Series E, MTN
7.00% due 11/01/2011		588,536		522,406
HSBC Bank USA, BKNT
7.00% due 11/01/2011 (b)(h)		257,513		264,878

 

The accompanying notes are an integral part of the financial statements.

143

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
HSBC Bank USA, BKNT (continued)
7.00% due 11/01/2011 (b)(h)	$	247,828	$	250,058
HSBK Europe BV
7.25% due 05/03/2017 (h)		7,660,000		6,338,650
9.25% due 10/16/2013 (h)		530,000		507,475
ICICI Bank, Ltd.
6.375% due 04/30/2022 (b)(h)		1,864,000		1,564,506
6.375% due 04/30/2022 (b)		1,573,000		1,335,980
RSHB Capital SA for OJSC Russian Agricultural Bank
6.299% due 05/15/2017 (h)		944,000		838,272
7.125% due 01/14/2014 (h)		1,180,000		1,149,674
7.175% due 05/16/2013 (h)		1,069,000		1,047,727
TuranAlem Finance BV
8.25% due 01/22/2037 (h)		4,265,000		3,017,488
8.25% due 01/22/2037		2,738,000		1,937,135
				26,565,624
Broadcasting - 0.10%
CMP Susquehanna Corp.
9.875% due 05/15/2014		2,405,000		1,503,125
Building Materials & Construction - 2.37%
Associated Materials, Inc.
zero coupon, Step up to 11.25% on 03/01/2009 due 03/01/2014		9,385,000		6,287,950
9.75% due 04/15/2012		7,465,000		7,446,337
K Hovnanian Enterprises, Inc.
8.625% due 01/15/2017		820,000		541,200
11.50% due 05/01/2013 (h)		8,490,000		8,670,413
Nortek, Inc.
10.00% due 12/01/2013 (h)		4,700,000		4,394,500
NTK Holdings, Inc.
zero coupon due 03/01/2014		10,270,000		4,313,400
Odebrecht Finance, Ltd.
7.50% due 10/18/2017 (h)		5,200,000		5,200,000
				36,853,800
Business Services - 2.18%
Affinion Group, Inc.
10.125% due 10/15/2013		1,045,000		1,029,325
11.50% due 10/15/2015		9,350,000		9,116,250
Allied Security Escrow Corp.
11.375% due 07/15/2011		8,271,000		8,736,244
Ceridian Corp., PIK
12.25% due 11/15/2015 (h)		4,200,000		3,732,750
Sungard Data Systems, Inc.
9.125% due 08/15/2013		3,826,000		3,883,390
10.25% due 08/15/2015		6,850,000		6,901,375
U.S. Investigations Services, Inc.
10.50% due 11/01/2015 (h)		620,000		551,800
				33,951,134
Cable & Television - 3.17%
Cablevision Systems Corp., Series B
7.1325% due 04/01/2009 (b)		500,000		502,500
8.00% due 04/15/2012		270,000		267,300
Charter Communications Holdings I LLC/Charter Communications Holdings I Capital Corp.
11.00% due 10/01/2015		24,014,000		18,430,745

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cable & Television (continued)
Charter Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.
10.25% due 10/01/2013	$	3,448,000	$	3,085,960
Charter Communications Holdings LLC
11.75 due 05/15/2011		1,755,000		1,158,300
12.125 due 01/15/2012		1,840,000		1,214,400
Charter Communications, Inc.
10.875% due 09/15/2014		9,670,000		10,153,500
CSC Holdings, Inc.
6.75% due 04/15/2012		2,550,000		2,486,250
8.50% due 06/15/2015 (h)		2,720,000		2,733,600
CSC Holdings, Inc., Series B
7.625% due 04/01/2011		780,000		783,900
8.125% due 08/15/2009		2,715,000		2,755,725
8.125% due 07/15/2009		470,000		476,462
DirecTV Holdings LLC
8.375% due 03/15/2013		1,990,000		2,059,650
Echostar DBS Corp.
7.75% due 05/31/2015		3,300,000		3,151,500
				49,259,792
Cellular Communications - 1.96%
ALLTEL Communications, Inc., PIK
10.375% due 12/01/2017 (h)		3,940,000		4,531,000
America Movil SAB de CV
5.625% due 11/15/2017		1,410,000		1,366,709
MetroPCS Wireless, Inc.
9.25% due 11/01/2014		1,840,000		1,823,900
Rural Cellular Corp.
5.6819% due 06/01/2013 (b)		3,260,000		3,325,200
9.875% due 02/01/2010		840,000		861,000
True Move Company, Ltd.
10.75% due 12/16/2013 (h)		18,540,000		14,739,300
10.75% due 12/16/2013		700,000		538,884
UBS Luxembourg SA for OJSC Vimpel Communications
8.25% due 05/23/2016		3,600,000		3,325,500
				30,511,493
Chemicals - 0.91%
Georgia Gulf Corp.
10.75% due 10/15/2016		11,690,000		5,728,100
Huntsman International LLC
7.875% due 11/15/2014		1,975,000		1,836,750
Methanex Corp.
8.75% due 08/15/2012		3,615,000		3,795,750
Montell Finance Company BV
8.10% due 03/15/2027 (h)		4,155,000		2,119,050
Westlake Chemical Corp.
6.625% due 01/15/2016		800,000		680,000
				14,159,650
Coal - 0.30%
International Coal Group, Inc.
10.25% due 07/15/2014		4,650,000		4,719,750
Commercial Services - 1.91%
American Achievement Corp.
8.25% due 04/01/2012 (h)		695,000		681,100
DI Finance/DynCorp International
9.50% due 02/15/2013 (h)		5,880,000		5,850,600

 

The accompanying notes are an integral part of the financial statements.

144

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Commercial Services (continued)
DI Finance/DynCorp International LLC, Series B
9.50% due 02/15/2013	$	10,434,000	$	10,355,745
Rental Service Corp.
9.50% due 12/01/2014		7,685,000		6,148,000
Ticketmaster
10.75% due 08/01/2016 (h)		3,160,000		3,239,000
U.S Investigations Services, Inc.
11.75% due 05/01/2016 (h)		4,210,000		3,410,100
				29,684,545
Computers & Business Equipment - 0.26%
Activant Solutions, Inc.
9.50% due 05/01/2016		5,445,000		4,110,975
Construction & Mining Equipment - 0.08%
Terex Corp.
7.375% due 01/15/2014		1,260,000		1,241,100
Construction Materials - 0.05%
Nortek, Inc.
8.50% due 09/01/2014		1,400,000		854,000
Containers & Glass - 1.24%
Berry Plastics Holding Corp.
10.25% due 03/01/2016		2,050,000		1,435,000
Graham Packaging Company
9.875% due 10/15/2014		3,310,000		2,904,525
Graphic Packaging International Corp.
9.50% due 08/15/2013		8,335,000		7,834,900
Greif, Inc.
6.75% due 02/01/2017		4,185,000		4,059,450
Plastipak Holdings, Inc.
8.50% due 12/15/2015 (h)		1,790,000		1,485,700
Radnor Holdings Corp.
11.00% due 03/15/2010		2,350,000		2,937
Solo Cup Company
8.50% due 02/15/2014		1,740,000		1,531,200
				19,253,712
Correctional Facilities - 0.28%
Corrections Corp. of America
6.25% due 03/15/2013		3,725,000		3,650,500
6.75% due 01/31/2014		750,000		744,375
				4,394,875
Crude Petroleum & Natural Gas - 4.23%
Chesapeake Energy Corp.
6.25% due 01/15/2018		6,185,000		5,659,275
6.375% due 06/15/2015		815,000		757,950
6.50% due 08/15/2017		2,655,000		2,469,150
6.625% due 01/15/2016		1,000,000		937,500
7.00% due 08/15/2014		425,000		420,750
7.25% due 12/15/2018		6,265,000		6,108,375
Mariner Energy, Inc.
7.50% due 04/15/2013		1,820,000		1,701,700
8.00% due 05/15/2017		1,760,000		1,610,400
OPTI Canada, Inc.
7.875% due 12/15/2014		1,435,000		1,418,856
8.25% due 12/15/2014		1,475,000		1,473,156
Parallel Petroleum Corp.
10.25% due 08/01/2014		4,600,000		4,485,000

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas (continued)
PetroHawk Energy Corp.
7.875% due 06/01/2015 (h)	$	1,390,000	$	1,296,175
9.125% due 07/15/2013		3,125,000		3,109,375
Petrozuata Finance, Inc.
8.22% due 04/01/2017 (h)		216,850		224,981
8.22% due 04/01/2017		4,325,111		4,490,854
Quicksilver Resources, Inc.
7.125% due 04/01/2016		2,675,000		2,327,250
8.25% due 08/01/2015		415,000		401,513
SandRidge Energy, Inc.
8.00% due 06/01/2018 (h)		3,460,000		3,243,750
SandRidge Energy, Inc., PIK
8.625% due 04/01/2015 (h)		9,780,000		9,437,700
Southwestern Energy Company
7.50% due 02/01/2018 (h)		3,590,000		3,670,775
Turbo Beta, Ltd.
14.50% due 03/15/2015		7,694,596		7,521,468
W&T Offshore, Inc.
8.25% due 06/15/2014 (h)		3,320,000		2,988,000
				65,753,953
Domestic Oil - 1.21%
Exco Resources, Inc.
7.25% due 01/15/2011		8,815,000		8,726,850
Stone Energy Corp.
6.75% due 12/15/2014		3,855,000		3,296,025
Whiting Petroleum Corp.
7.00% due 02/01/2014		1,485,000		1,410,750
7.25% due 05/01/2012		5,595,000		5,399,175
				18,832,800
Educational Services - 0.42%
Education Management Corp.
10.25% due 06/01/2016		7,391,000		6,476,364
Electrical Utilities - 6.59%
AES Corp.
8.00% due 10/15/2017		5,570,000		5,486,450
8.00% due 06/01/2020 (h)		750,000		718,125
8.75% due 05/15/2013 (h)		62,000		64,170
8.875% due 02/15/2011		2,220,000		2,308,800
9.375% due 09/15/2010		5,000,000		5,250,000
Edison Mission Energy
7.20% due 05/15/2019		3,670,000		3,523,200
7.625% due 05/15/2027		5,510,000		4,972,775
7.75% due 06/15/2016		3,140,000		3,140,000
EEB International Ltd.
8.75% due 10/31/2014 (h)		5,250,000		5,584,688
Energy Future Holdings Corp.
11.25% due 11/01/2017 (h)		49,405,000		48,787,437
Ipalco Enterprises, Inc.
7.25% due 04/01/2016 (h)		835,000		837,088
Mirant Mid Atlantic LLC, Series C
10.06% due 12/30/2028		6,001,654		6,766,864
Orion Power Holdings, Inc.
12.00% due 05/01/2010		4,515,000		4,876,200

 

The accompanying notes are an integral part of the financial statements.

145

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
Texas Competitive Electric Holdings Company LLC, PIK
10.50% due 11/01/2016 (h)	$	10,520,000	$	10,072,900
				102,388,697
Electronics - 0.18%
L-3 Communications Corp.
7.625% due 06/15/2012		2,575,000		2,620,062
L-3 Communications Corp., Series B
6.375% due 10/15/2015		208,000		199,160
				2,819,222
Energy - 2.26%
Dynegy Holdings, Inc.
7.75% due 06/01/2019		11,010,000		10,156,725
Mirant North America LLC
7.375% due 12/31/2013		1,050,000		1,042,125
NRG Energy, Inc.
7.25% due 02/01/2014		3,720,000		3,668,850
7.375% due 02/01/2016		11,355,000		11,213,062
7.375% due 01/15/2017		2,805,000		2,741,888
Sonat, Inc.
7.625% due 07/15/2011		2,900,000		2,956,289
VeraSun Energy Corp.
9.375% due 06/01/2017		5,835,000		3,413,475
				35,192,414
Financial Services - 8.03%
AAC Group Holding Corp.
10.25 due 10/01/2012 (h)		240,000		228,000
AmeriCredit Corp.
8.50% due 07/01/2015 (a)		5,670,000		4,323,375
Capmark Financial Group, Inc.
5.875% due 05/10/2012		3,080,000		1,987,666
Citigroup, Inc.
8.40% due 04/29/2049 (b)		5,780,000		4,907,336
El Paso Performance-Linked Trust
7.75% due 07/15/2011 (h)		9,075,000		9,174,807
First Data Corp.
6.79% due 09/24/2015		7,650,000		5,967,000
Ford Motor Credit Company LLC
5.5381% due 01/13/2012 (b)		1,400,000		1,033,627
8.0262% due 06/15/2011 (b)		7,400,000		5,791,639
12.00% due 05/15/2015 (b)		35,210,000		29,783,892
General Motors Acceptance Corp.
6.875% due 08/28/2012		2,905,000		1,704,204
8.00% due 11/01/2031		20,850,000		11,245,427
Hawker Beechcraft Acquisition Company LLC
8.875% due 04/01/2015		14,580,000		14,543,550
9.75% due 04/01/2017		195,000		191,100
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC
7.3044% due 11/15/2014 (b)		2,215,000		1,688,937
JSG Funding PLC
7.75% due 04/01/2015		1,275,000		1,122,000
Leucadia National Corp.
8.125% due 09/15/2015		3,650,000		3,672,812
Lukoil International Finance BV, Series REGS
6.356% due 06/07/2017		3,110,000		2,783,450

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Nell AF SARL
8.375% due 08/15/2015 (h)	$	4,330,000	$	2,554,700
Residential Capital LLC
8.50% due 05/15/2010 (h)		6,879,000		4,746,510
9.625% due 05/15/2015 (h)		10,892,000		3,594,360
SLM Corp., MTN
8.45% due 06/15/2018		9,550,000		8,757,102
TNK-BP Finance SA
6.625% due 03/20/2017 (h)		96,000		79,440
6.625% due 03/20/2017		1,870,000		1,593,820
7.50% due 07/18/2016 (h)		1,362,000		1,218,990
7.875% due 03/13/2018 (h)		2,340,000		2,088,450
				124,782,194
Food & Beverages - 0.61%
Dole Food Company, Inc.
7.25% due 06/15/2010		1,740,000		1,609,500
8.625% due 05/01/2009		3,575,000		3,530,312
8.75% due 07/15/2013		425,000		393,125
8.875% due 03/15/2011		4,325,000		3,957,375
				9,490,312
Funeral Services - 0.23%
Service Corp. International
6.75% due 04/01/2016		95,000		87,400
7.50% due 04/01/2027		2,655,000		2,170,463
7.625% due 10/01/2018		1,310,000		1,257,600
				3,515,463
Furniture & Fixtures - 0.75%
Norcraft Companies LP
9.00% due 11/01/2011		6,875,000		6,840,625
Norcraft Holdings Capital
zero coupon, Step up to 9.75% on 09/01/2008 due 09/01/2012		5,395,000		4,801,550
				11,642,175
Gas & Pipeline Utilities - 2.46%
Atlas Pipeline Partners LP
8.75% due 06/15/2018 (h)		5,290,000		5,157,750
Dynegy-Roseton Danskammer, Series B
7.67% due 11/08/2016		1,530,000		1,497,488
El Paso Corp.
7.375% due 12/15/2012		225,000		227,445
7.80% due 08/01/2031		6,395,000		6,315,062
7.875% due 06/15/2012 (a)		6,025,000		6,182,060
MarkWest Energy Partners LP/ MarkWest Energy Finance Corp.
8.75% due 04/15/2018 (h)		3,140,000		3,124,300
Targa Resources Partners LP
8.25% due 07/01/2016		1,040,000		946,400
Transcontinental Gas Pipe Line Corp.
8.875% due 07/15/2012		2,935,000		3,256,761
Williams Companies, Inc.
7.625% due 07/15/2019		3,050,000		3,187,250
7.875% due 09/01/2021		4,070,000		4,273,500
8.75% due 03/15/2032		3,550,000		3,993,750
				38,161,766

 

The accompanying notes are an integral part of the financial statements.

146

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Healthcare Products - 0.76%
Advanced Medical Optics, Inc.
7.50% due 05/01/2017	$	2,805,000	$	2,510,475
Biomet, Inc.
10.375% due 10/15/2017		3,930,000		4,126,500
11.625% due 10/15/2017		1,280,000		1,345,600
Leiner Health Products, Inc.
11.00% due 06/01/2012 []		14,530,000		726,500
Universal Hospital Services, Inc.
6.3025% due 06/01/2015 (b)		1,300,000		1,209,000
8.50% due 06/01/2015		1,855,000		1,845,725
				11,763,800
Healthcare Services - 1.94%
CRC Health Corp.
10.75% due 02/01/2016		6,865,000		5,286,050
DaVita, Inc.
6.625% due 03/15/2013		3,050,000		2,973,750
7.25% due 03/15/2015		4,215,000		4,146,506
U.S. Oncology Holdings, Inc., PIK
7.9494% due 03/15/2012		10,902,000		8,721,600
Vanguard Health Holding Company I LLC zero coupon, Step up to 11.25% on 10/01/2009 due 10/01/2015		2,035,000		1,826,413
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		7,300,000		7,172,250
				30,126,569
Holdings Companies/Conglomerates - 0.35%
Ashtead Capital, Inc.
9.00% due 08/15/2016 (h)		4,557,000		4,101,300
Leucadia National Corp.
7.125% due 03/15/2017		1,370,000		1,289,512
				5,390,812
Hotels & Restaurants - 0.73%
Buffets, Inc.
12.50% due 11/01/2014 []		5,915,000		59,150
Carrols Corp.
9.00% due 01/15/2013		850,000		718,250
CCM Merger, Inc.
8.00% due 08/01/2013 (h)		3,405,000		2,741,025
Denny’s Corp.
10.00% due 10/01/2012		2,500,000		2,400,000
El Pollo Loco, Inc.
11.75% due 11/15/2013		3,120,000		3,026,400
Sbarro, Inc.
10.375% due 02/01/2015 (a)		3,380,000		2,332,200
				11,277,025
Household Products - 0.25%
Jarden Corp.
7.50% due 05/01/2017		4,295,000		3,822,550
Industrial Machinery - 0.45%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		8,040,000		6,954,600
Insurance - 0.45%
American International Group, Inc.
8.175% due 05/15/2058 (b)(h)		9,130,000		7,051,848

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
International Oil - 1.24%
Corral Finans AB, PIK
4.2906% due 04/15/2010 (b)(h)	$	4,890,839	$	4,132,759
Gaz Capital for Gazprom
6.51% due 03/07/2022 (h)		1,590,000		1,347,366
6.51% due 03/07/2022		103,000		86,935
Gazprom OAO, Series A6
6.95 due 08/06/2009 (m)	RUB	37,840,000		1,505,992
Gazprom OAO, Series A7
6.72% due 10/29/2009 (m)		93,970,000		3,734,187
Gazprom OAO, Series A8
7.00% due 10/27/2011 (m)		31,320,000		1,191,230
KazMunaiGaz Finance Sub BV
8.375% due 07/02/2013 (h)	$	2,860,000		2,902,900
Pemex Project Funding Master Trust
9.125% due 10/13/2010		50,000		54,375
Petroplus Finance, Ltd.
6.75% due 05/01/2014 (h)		1,745,000		1,579,225
7.00% due 05/01/2017 (h)		3,160,000		2,804,500
				19,339,469
Leisure Time - 3.30%
Boyd Gaming Corp.
6.75% due 04/15/2014		3,370,000		2,603,325
7.125% due 02/01/2016		2,530,000		1,916,475
Choctaw Resort Development Enterprise
7.25% due 11/15/2019 (h)		1,641,000		1,300,492
Downstream Development Authority of the Quapaw Tribe of Oklahoma
12.00% due 10/15/2015 (h)		4,290,000		3,507,075
Fontainebleau Las Vegas Holdings
10.25% due 06/15/2015 (h)		3,000,000		1,417,500
Harrah’s Operating Company, Inc.
10.75% due 02/01/2016 (h)		420,000		282,450
Indianapolis Downs Capital LLC
11.00% due 11/01/2012 (h)		4,810,000		3,823,950
Inn of the Mountain Gods Resort & Casino
12.00% due 11/15/2010		7,526,000		5,362,275
Mandalay Resort Group
7.625% due 07/15/2013		1,500,000		1,226,250
MGM Mirage, Inc.
5.875% due 02/27/2014		1,100,000		880,000
6.625% due 07/15/2015		260,000		207,350
6.75% due 09/01/2012		2,200,000		1,892,000
7.50% due 06/01/2016		875,000		713,125
8.375% due 02/01/2011		2,800,000		2,541,000
Mohegan Tribal Gaming Authority
7.125% due 08/15/2014		2,900,000		2,131,500
Park Place Entertainment Corp.
8.125% due 05/15/2011		7,290,000		5,103,000
River Rock Entertainment Authority
9.75% due 11/01/2011		445,000		413,850
Seneca Gaming Corp.
7.25% due 05/01/2012		1,825,000		1,628,812
Snoqualmie Entertainment Authority
6.875% due 02/01/2014 (b)(h)		2,315,000		1,695,738
Station Casinos, Inc.
6.00% due 04/01/2012		3,630,000		2,531,925
6.50% due 02/01/2014		500,000		225,000
6.625% due 03/15/2018		1,705,000		707,575

 

The accompanying notes are an integral part of the financial statements.

147

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Leisure Time (continued)
Station Casinos, Inc. (continued)
7.75% due 08/15/2016	$	6,180,000	$	4,171,500
Wynn Las Vegas Capital Corp.
6.625% due 12/01/2014		5,460,000		4,975,425
				51,257,592
Manufacturing - 0.29%
Sequa Corp.
11.75% due 12/01/2015 (h)		2,540,000		2,235,200
13.50% due 12/01/2015 (h)		2,540,000		2,235,200
				4,470,400
Medical-Hospitals - 2.96%
HCA, Inc.
6.375% due 01/15/2015		7,055,000		5,820,375
7.50% due 12/15/2023		3,050,000		2,366,394
7.69% due 06/15/2025		405,000		316,821
8.75% due 09/01/2010		600,000		606,000
9.25% due 11/15/2016		4,405,000		4,531,644
9.625% due 11/15/2016		14,086,000		14,209,252
Tenet Healthcare Corp.
6.375% due 12/01/2011		5,690,000		5,490,850
6.50% due 06/01/2012		2,015,000		1,949,512
7.375% due 02/01/2013		6,086,000		5,713,233
9.875% due 07/01/2014		4,995,000		5,032,463
				46,036,544
Metal & Metal Products - 0.25%
Noranda Aluminium Holding Corp.
8.5775% due 11/15/2014 (b)		4,835,000		3,843,825
Mining - 1.16%
Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/2017		11,740,000		12,444,400
Vale Overseas, Ltd.
6.875% due 11/21/2036		1,612,000		1,579,734
8.25% due 01/17/2034		1,021,000		1,153,074
Vedanta Resources PLC
8.75% due 01/15/2014 (h)		2,870,000		2,855,650
				18,032,858
Office Furnishings & Supplies - 0.35%
Interface, Inc.
9.50% due 02/01/2014		3,075,000		3,228,750
10.375% due 02/01/2010		2,110,000		2,215,500
				5,444,250
Paper - 2.80%
Abitibi-Consolidated Company of Canada
13.75% due 04/01/2011 (h)		7,165,000		7,523,250
15.50% due 07/15/2010 (h)		10,196,000		7,697,980
Appleton Papers, Inc.
8.125% due 06/15/2011		2,300,000		2,104,500
Appleton Papers, Inc., Series B
9.75% due 06/15/2014		4,755,000		3,756,450
NewPage Corp.
9.0506% due 05/01/2012 (b)		12,510,000		11,728,125
NewPage Holding Corp.
9.9862% due 11/01/2013		3,788,596		3,513,923
Rock-Tenn Company
9.25% due 03/15/2016 (h)		2,320,000		2,378,000

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Paper (continued)
Smurfit Capital Funding PLC
7.50% due 11/20/2025	$	3,280,000	$	2,853,600
Verso Paper Holdings LLC / Verson Paper Inc., Series B
11.375% due 08/01/2016		2,310,000		1,963,500
				43,519,328
Petroleum Services - 1.74%
Belden & Blake Corp.
8.75% due 07/15/2012		8,515,000		8,664,012
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015		1,690,000		1,681,550
Complete Production Services, Inc.
8.00% due 12/15/2016		3,495,000		3,433,838
Enterprise Products Operating LP
7.034% due 01/15/2068 (b)		3,350,000		2,905,415
8.375% due 08/01/2066 (b)		2,800,000		2,766,529
Key Energy Services, Inc.
8.375% due 12/01/2014 (h)		4,080,000		4,110,600
Pride International, Inc.
7.375% due 07/15/2014		1,270,000		1,289,050
SemGroup LP
8.75% due 11/15/2015 [] (h)		10,803,000		1,998,555
Tesoro Corp.
6.50% due 06/01/2017		280,000		234,500
				27,084,049
Publishing - 1.31%
Dex Media West LLC
9.875% due 08/15/2013		1,700,000		1,309,000
Dex Media, Inc.
zero coupon, Step up to 9.00% on
11/15/2008 due 11/15/2013		3,660,000		2,122,800
zero coupon, Step up to 9.00% on 11/15/2008 due 11/15/2013		2,670,000		1,548,600
8.00% due 11/15/2013		25,000		14,750
Idearc, Inc.
8.00% due 11/15/2016		12,775,000		5,780,687
Sun Media Corp.
7.625% due 02/15/2013		1,350,000		1,279,125
TL Acquisitions, Inc.
zero coupon due 07/15/2015 (b)(h)		4,540,000		3,246,100
10.50% due 01/15/2015 (h)		6,000,000		5,130,000
				20,431,062
Railroads & Equipment - 0.95%
American Railcar Industries, Inc.
7.50% due 03/01/2014		1,610,000		1,489,250
Grupo Transportacion Ferroviaria Mexicana, SA de CV
9.375% due 05/01/2012		7,875,000		8,229,375
Kansas City Southern de Mexico SA de CV
7.375% due 06/01/2014		2,975,000		2,900,625
7.625% due 12/01/2013		1,150,000		1,127,000
Kansas City Southern Railway Company
7.50% due 06/15/2009		1,060,000		1,071,925
				14,818,175
Real Estate - 1.28%
Ashton Woods USA
9.50% due 10/01/2015		3,150,000		1,732,500

 

The accompanying notes are an integral part of the financial statements.

148

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Real Estate (continued)
Forest City Enterprises, Inc.
7.625% due 06/01/2015	$	145,000	$	130,500
Host Marriott LP
7.125% due 11/01/2013		5,100,000		4,806,750
iStar Financial, Inc.
8.625% due 06/01/2013		3,585,000		2,868,000
Realogy Corp.
10.50% due 04/15/2014		720,000		424,800
11.00% due 04/15/2014		6,195,000		2,911,650
12.375% due 04/15/2015		6,010,000		2,764,600
Ventas Realty LP/Ventas Capital Corp.
6.50% due 06/01/2016		675,000		641,250
6.75% due 04/01/2017		3,890,000		3,695,500
				19,975,550
Retail - 1.15%
Eye Care Centers of America
10.75% due 02/15/2015		3,170,000		3,269,063
Michaels Stores, Inc.
10.00% due 11/01/2014		3,995,000		2,996,250
11.375% due 11/01/2016		1,940,000		1,241,600
Stater Brothers Holdings
7.75% due 04/15/2015		1,060,000		1,022,900
Suburban Propane Partners LP
6.875% due 12/15/2013		10,200,000		9,282,000
				17,811,813
Retail Grocery - 0.18%
Delhaize America, Inc.
9.00% due 04/15/2031		2,430,000		2,817,804
Retail Trade - 1.97%
ACE Hardware Corp.
9.125% due 06/01/2016 (h)		2,700,000		2,430,000
American Greetings Corp.
7.375% due 06/01/2016		375,000		356,250
Blockbuster, Inc.
9.00% due 09/01/2012		5,435,000		4,307,237
Dollar General Corp.
10.625% due 07/15/2015		1,015,000		1,017,538
Dollar General Corp., PIK
11.875% due 07/15/2017		5,595,000		5,287,275
Inergy LP/Inergy Finance Corp.
8.25% due 03/01/2016 (h)		1,435,000		1,348,900
Macys Retail Holdings, Inc.
10.625% due 11/01/2010		1,770,000		1,896,236
Neiman Marcus Group, Inc.
7.125% due 06/01/2028		1,870,000		1,570,800
9.00% due 10/15/2015		3,870,000		3,763,575
10.375% due 10/15/2015		8,930,000		8,706,750
				30,684,561
Semiconductors - 0.34%
Freescale Semiconductor, Inc.
8.875% due 12/15/2014		560,000		453,600
10.125% due 12/15/2016		1,110,000		851,925
NXP BV/NXP Funding LLC
5.5406% due 10/15/2013 (b)		1,540,000		1,197,350
7.875% due 10/15/2014		2,167,000		1,776,940

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Semiconductors (continued)
NXP BV/NXP Funding LLC (continued)
9.50% due 10/15/2015	$	1,460,000	$	989,150
				5,268,965
Steel - 2.28%
Evraz Group SA
8.875% due 04/24/2013 (h)		2,140,000		2,081,150
9.50% due 04/24/2018 (h)		910,000		871,325
GTL Trade Finance, Inc.
7.25% due 10/20/2017 (h)		4,215,000		4,244,075
7.25% due 10/20/2017		4,530,000		4,570,317
Metals USA Holdings Corp., PIK
8.7913% due 07/01/2012		3,790,000		3,420,475
Metals USA, Inc.
11.125% due 12/01/2015		6,980,000		7,294,100
Ryerson, Inc.
12.00% due 11/01/2015 (h)		12,725,000		12,470,500
Tube City IMS Corp.
9.75% due 02/01/2015		445,000		416,075
				35,368,017
Telecommunications Equipment & Services - 3.14%
Axtel SAB de CV
7.625% due 02/01/2017 (h)		7,200,000		7,002,000
Axtel SAB de CV, Series REGS
7.625% due 02/01/2017		350,000		350,875
Citizens Communications Company
7.05% due 10/01/2046		1,000,000		657,500
7.875% due 01/15/2027		4,890,000		4,205,400
9.25% due 05/15/2011		100,000		103,500
Globo Comunicacoes e Participacoes SA
7.25% due 04/26/2022 (h)		3,798,000		3,760,020
Hawaiian Telcom Communications, Inc., Series B
12.50% due 05/01/2015		3,360,000		588,000
Inmarsat Finance PLC
1 due 11/15/2012		2,535,000		2,582,531
Intelsat Corp.
9.25% due 08/15/2014 (h)		10,500,000		10,473,750
Intelsat Jackson Holdings, Ltd.
9.50% due 06/15/2016 (h)		3,265,000		3,277,244
iPCS, Inc.
4.9256% due 05/01/2013 (b)		3,140,000		2,786,750
Level 3 Financing, Inc.
6.845% due 02/15/2015 (b)		1,700,000		1,372,750
9.25% due 11/01/2014		9,445,000		8,665,788
True Move Company, Ltd.
10.375% due 08/01/2014 (h)		2,610,000		2,009,700
VIP Finance Ireland, Ltd. for OJSC Vimpel Communications
8.375% due 04/30/2013 (h)		940,000		908,504
World Access, Inc.
13.25% due 01/15/2049		1,455,674		67,325
				48,811,637
Telephone - 2.84%
Cincinnati Bell Telephone Company
6.30% due 12/01/2028		2,115,000		1,623,262
Nordic Telephone Company Holdings
8.875% due 05/01/2016 (h)		6,650,000		6,400,625

 

The accompanying notes are an integral part of the financial statements.

149

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telephone (continued)
Qwest Communications International, Inc.
7.25% due 02/15/2011	$	25,000	$	24,000
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		5,743,000		5,226,130
Sprint Capital Corp.
6.875% due 11/15/2028		10,030,000		8,525,500
8.375% due 03/15/2012		690,000		695,175
Virgin Media, Inc.
9.125% due 08/15/2016		12,555,000		11,958,638
Windstream Corp.
8.625% due 08/01/2016		9,720,000		9,622,800
				44,076,130
Tobacco - 0.34%
Alliance One International, Inc.
8.50% due 05/15/2012		2,870,000		2,690,625
11.00% due 05/15/2012		2,580,000		2,625,150
				5,315,775
Transportation - 0.78%
Gulfmark Offshore, Inc.
7.75% due 07/15/2014		1,930,000		1,901,050
Horizon Lines, Inc.
4.25% due 08/15/2012		5,375,000		4,416,944
Teekay Shipping Corp.
8.875% due 07/15/2011		5,627,000		5,845,046
				12,163,040
Travel Services - 0.03%
Expedia Inc.
8.50% due 07/01/2016 (h)		475,000		461,938
Trucking & Freight - 0.26%
Saint Acquisition Corp.
10.5544% due 05/15/2015 (b)(h)		7,300,000		2,555,000
12.50% due 05/15/2017 (a)(h)		3,905,000		1,435,088
				3,990,088
TOTAL CORPORATE BONDS (Cost $1,515,689,602)			$	1,335,502,120
CONVERTIBLE BONDS - 0.07%
Telecommunications Equipment & Services - 0.07%
Virgin Media, Inc.
6.50% due 11/15/2016 (h)		1,160,000		1,059,196
TOTAL CONVERTIBLE BONDS (Cost $1,048,029)			$	1,059,196
DEFAULTED BONDS BEYOND MATURITY DATES - 0.23%
Argentina - 0.23%
Republic of Argentina
1.00% due 02/26/2008 *	EUR	304,137		111,621
1.00 due 08/11/2007 *		505,000,000		102,831
1.00% due 03/18/2004 *		6,100,000,000		1,317,204
1.00% due 03/18/2004 *		625,000		252,149
8.125% due 04/21/2008 *		625,000		245,618
8.125% due 10/04/2004 *		375,000		131,418
8.50% due 02/23/2005 *		2,400,000		446,589
9.00% due 06/20/2003 *		600,000		240,963
9.25% due 10/21/2002 *		225,000		83,182

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
DEFAULTED BONDS BEYOND MATURITY DATES (continued)
Argentina (continued)
Republic of Argentina (continued)
9.50% due 03/04/2004 *	EUR	456,000	$	188,985
9.75% due 11/26/2003 *		425,000		174,579
10.00% due 02/22/2007 *		775,000		322,614
				3,617,753
TOTAL DEFAULTED BONDS BEYOND MATURITY DATES (Cost $3,443,205)			$	3,617,753
COMMON STOCKS - 0.01%
Household Products - 0.01%
Home Interiors *		9,260,656		92,607
Telecommunications Equipment & Services - 0.00%
XO Holdings, Inc. *		821		591
TOTAL COMMON STOCKS (Cost $2,429,007)			$	93,198
PREFERRED STOCKS - 0.71%
Banking - 0.55%
Bank of America Corp., Series L, 7.25% *		9,380		8,573,320
Cable & Television - 0.00%
ION Media Networks, Inc., Series B, 12.00% *		10		4,000
Financial Services - 0.16%
Citigroup, Inc., Series T, 6.50% *		58,800		2,506,056
TOTAL PREFERRED STOCKS (Cost $12,289,097)			$	11,083,376
TERM LOANS - 2.97%
Apparel & Textiles - 0.09%
Simmons Holdco, Inc., PIK
8.2044% due 02/15/2012 (b)		2,500,000		1,450,000
Auto Parts - 0.37%
Allison Transmission, Inc.
5.22% due 08/07/2014 (b)		6,346,411		5,688,986
Auto Services - 0.16%
Penhall Holdings, PIK
9.8825% due 04/01/2012 (b)		2,800,487		2,464,429
Banking - 0.45%
HSBC Bank PLC
8.90% due 12/20/2010 (b)		52,153,000		2,131,704
RSHB Capital
9.50% due 02/11/2011 (b)		120,168,000		4,868,849
				7,000,553
Containers & Glass - 0.32%
Berry Plastics Group, Inc.
9.725% due 06/15/2014 (b)		7,138,487		4,996,941
Domestic Oil - 0.21%
Ashmore Energy
5.8006% due 03/30/2014 (b)		3,579,257		3,257,123
Gas & Pipeline Utilities - 0.22%
Stallion Oilfield Services
8.3613% due 07/31/2012 (b)		4,200,000		3,444,000

 

The accompanying notes are an integral part of the financial statements.

150

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

High Yield Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Healthcare Services - 0.31%
Iasis Holdco, Inc., PIK
8.0431% due 06/15/2014 (b)	$	5,645,370	$	4,883,245
Paper - 0.08%
Verso Paper Holdings, Inc.
8.7094% due 02/01/2013 (b)		1,344,000		1,261,680
Publishing - 0.26%
Newsday LLC
9.75% due 07/15/2013		4,000,000		3,992,520
Telecommunications Equipment & Services - 0.50%
Wind Acquisition Finance SA, PIK
13.0613% due 12/21/2011 (b)		8,260,532		7,744,249
TOTAL TERM LOANS (Cost $51,982,686)			$	46,183,726
WARRANTS - 0.01%
Republic of Venezuela - 0.01%
Republic of Venezuela
(Expiration date 04/15/2020; strike price $26.00)		305,000		107,308
TOTAL WARRANTS (Cost $94,550)			$	107,308
REPURCHASE AGREEMENTS - 2.90%
Merrill Lynch Tri-Party Repurchase Agreement dated 08/29/2008 at 2.06% to be repurchased at $45,010,300 on 09/02/2008, collateralized by $46,131,000 Federal National Mortgage Association, zero coupon due 10/31/2008 (valued at $45,900,000, including interest)	$	45,000,000	$	45,000,000
TOTAL REPURCHASE AGREEMENTS (Cost $45,000,000)			$	45,000,000
SHORT TERM INVESTMENTS - 2.01%
Bank Negara Malaysia Monetary Notes, Series 1208 zero coupon due 09/04/2008 MYR		367,000	$	108,118
Bank Negara Malaysia Monetary Notes, Series 1308 zero coupon due 11/27/2008		20,000		5,847
Bank Negara Malaysia Monetary Notes, Series 2008 zero coupon due 10/21/2008		906,000		51,134
Bank Negara Malaysia Monetary Notes, Series 2108 zero coupon due 09/25/2008		480,000		141,151
Bank Negara Malaysia Monetary Notes, Series 2508 zero coupon due 11/13/2008		3,656,000		1,070,039
Bank Negara Malaysia Monetary Notes, Series 2608 zero coupon due 11/25/2008		350,000		102,320
Bank Negara Malaysia Monetary Notes, Series 3308 zero coupon due 10/07/2008		1,028,000		301,566
Bank Negara Malaysia Monetary Notes, Series 3508 zero coupon due 02/17/2009		800,000		231,990
Bank Negara Malaysia Monetary Notes, Series 3707 zero coupon due 09/04/2008		180,000		52,917
Bank Negara Malaysia Monetary Notes, Series 4708 zero coupon due 09/23/2008		7,734,000		2,274,296

 

High Yield Fund (continued)
	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS (continued)
Bank Negara Malaysia Monetary Notes, Series 6208 zero coupon due 09/16/2008 MYR		513,000	$	150,763
Bank Negara Malaysia Monetary Notes, Series 7208 zero coupon due 10/07/2008		360,000		105,724
Bank Negara Malaysia Monetary Notes, Series 8408 zero coupon due 10/28/2008		259,000		75,926
Egypt Treasury Bills, Series 364 zero coupon due 10/28/2008 to 11/25/2008 EGP		96,200,000		17,673,835
John Hancock Cash
Investment Trust, 2.5657% (c)(i)	$	8,953,533		8,953,533
TOTAL SHORT TERM INVESTMENTS (Cost $31,262,487)			$	31,299,159
Total Investments (High Yield Fund) (Cost $1,714,426,869) - 97.99%			$	1,523,032,401
Other Assets in Excess of Liabilities - 2.01%				31,229,769
TOTAL NET ASSETS - 100.00%			$	1,554,262,170

 

Index 500 Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.22%
Advertising - 0.18%
Interpublic Group of Companies, Inc. *		39,308	$	369,495
Monster Worldwide, Inc. *		10,352		202,278
Omnicom Group, Inc.		26,677		1,130,838
				1,702,611
Aerospace - 2.19%
Boeing Company		62,588		4,103,269
General Dynamics Corp.		33,190		3,063,437
Goodrich Corp.		10,417		533,871
Lockheed Martin Corp.		28,134		3,275,923
Northrop Grumman Corp.		28,490		1,961,536
Raytheon Company		35,232		2,113,568
Rockwell Collins, Inc.		13,388		704,075
United Technologies Corp.		81,057		5,316,529
				21,072,208
Agriculture - 0.69%
Archer-Daniels-Midland Company		53,632		1,365,471
Monsanto Company		45,706		5,221,910
				6,587,381
Air Travel - 0.10%
Southwest Airlines Company		60,947		928,223
Aluminum - 0.23%
Alcoa, Inc.		67,887		2,181,209
Apparel & Textiles - 0.45%
Cintas Corp.		10,880		335,104
Coach, Inc. *		28,426		824,070
Jones Apparel Group, Inc.		7,212		143,230
Liz Claiborne, Inc.		7,894		127,962
NIKE, Inc., Class B		31,599		1,915,215
Polo Ralph Lauren Corp., Class A		4,803		364,452

 

The accompanying notes are an integral part of the financial statements.

151

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Apparel & Textiles (continued)
VF Corp.		7,272	$	576,306
				4,286,339
Auto Parts - 0.27%
AutoZone, Inc. *		3,581		491,421
Genuine Parts Company		13,644		578,778
Johnson Controls, Inc.		49,425		1,528,221
				2,598,420
Auto Services - 0.01%
AutoNation, Inc. *		11,153		126,587
Automobiles - 0.27%
Ford Motor Company *		186,734		832,833
General Motors Corp.		47,154		471,540
PACCAR, Inc.		30,413		1,309,584
				2,613,957
Banking - 2.94%
Bank of America Corp.		379,720		11,824,481
BB&T Corp.		45,546		1,366,380
Comerica, Inc.		12,534		352,080
Fifth Third Bancorp		47,872		755,420
First Horizon National Corp.		15,557		174,705
Hudson City Bancorp, Inc.		43,238		797,309
Huntington BancShares, Inc.		30,501		223,267
KeyCorp		40,439		485,672
M&T Bank Corp.		6,420		458,003
Marshall & Ilsley Corp.		21,588		332,455
National City Corp.		63,326		319,163
Northern Trust Corp.		15,951		1,282,301
Regions Financial Corp.		57,870		536,455
Sovereign Bancorp, Inc.		39,903		385,463
SunTrust Banks, Inc.		29,322		1,228,299
U.S. Bancorp		144,970		4,618,744
Wachovia Corp.		178,051		2,829,230
Zions Bancorp		8,958		240,433
				28,209,860
Biotechnology - 0.94%
Amgen, Inc. *		90,676		5,698,987
Biogen Idec, Inc. *		24,406		1,242,997
Genzyme Corp. *		22,264		1,743,271
Millipore Corp. *		4,588		344,146
				9,029,401
Broadcasting - 0.38%
CBS Corp., Class B		56,721		917,746
News Corp., Class A		191,812		2,716,058
				3,633,804
Building Materials & Construction - 0.06%
Masco Corp.		30,126		574,202
Business Services - 1.07%
Affiliated Computer Services, Inc., Class A *		8,028		427,411
Automatic Data Processing, Inc.		43,179		1,916,284
Computer Sciences Corp. *		12,588		592,014
Convergys Corp. *		10,291		151,792
Equifax, Inc.		10,788		381,140
Fiserv, Inc. *		13,654		708,096

 

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
Fluor Corp.		14,776	$	1,184,001
H & R Block, Inc.		27,100		692,134
Jacobs Engineering Group, Inc. *		10,145		748,904
Moody’s Corp.		16,916		687,805
Paychex, Inc.		26,712		910,345
Pitney Bowes, Inc.		17,289		590,419
R.R. Donnelley & Sons Company		17,682		492,974
Robert Half International, Inc.		13,228		338,637
Total Systems Services, Inc.		16,507		328,819
Unisys Corp. *		29,672		121,359
				10,272,134
Cable & Television - 1.42%
Comcast Corp., Class A		246,613		5,223,263
DIRECTV Group, Inc. *		59,170		1,669,186
Scripps Networks Interactive, Inc.		7,476		310,553
Time Warner, Inc.		298,036		4,878,849
Viacom, Inc., Class B *		52,703		1,553,685
				13,635,536
Cellular Communications - 0.18%
Motorola, Inc.		187,835		1,769,406
Chemicals - 1.42%
Air Products & Chemicals, Inc.		17,546		1,611,600
Ashland, Inc.		4,665		190,939
CF Industries Holdings, Inc.		4,530		690,372
Dow Chemical Company		77,494		2,644,870
E.I. Du Pont de Nemours & Company		75,019		3,333,844
Eastman Chemical Company		6,350		383,032
Hercules, Inc.		9,421		203,023
PPG Industries, Inc.		13,667		859,108
Praxair, Inc.		26,079		2,342,937
Rohm & Haas Company		10,447		784,047
Sigma-Aldrich Corp.		10,737		609,432
				13,653,204
Coal - 0.30%
CONSOL Energy, Inc.		15,223		1,030,749
Massey Energy Company		6,704		442,196
Peabody Energy Corp.		22,614		1,423,551
				2,896,496
Commercial Services - 0.03%
CB Richard Ellis Group, Inc. *		14,481		189,266
Ticketmaster *		3,018		64,676
				253,942
Computer Services - 0.08%
NetApp, Inc. *		28,612		729,034
Computers & Business Equipment - 6.05%
Apple, Inc. *		73,430		12,448,588
Cisco Systems, Inc. *		491,999		11,832,576
Cognizant Technology Solutions Corp.,
Class A *		24,061		705,469
Dell, Inc. *		168,323		3,657,659
EMC Corp. *		172,178		2,630,880
Hewlett-Packard Company		205,407		9,637,696
International Business Machines Corp.		114,396		13,925,425

 

The accompanying notes are an integral part of the financial statements.

152

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Computers & Business Equipment (continued)
Juniper Networks, Inc. *		43,723	$	1,123,681
Lexmark International, Inc. *		7,929		285,206
Metavante Technologies, Inc. *		1		24
SanDisk Corp. *		18,718		270,662
Sun Microsystems, Inc. *		65,114		586,026
Xerox Corp.		74,887		1,043,176
				58,147,068
Construction & Mining Equipment - 0.30%
National Oilwell Varco, Inc. *		34,579		2,549,510
Rowan Companies, Inc.		9,379		346,460
				2,895,970
Construction Materials - 0.12%
Sherwin-Williams Company		8,233		482,042
Vulcan Materials Company		9,115		682,167
				1,164,209
Containers & Glass - 0.13%
Ball Corp.		8,144		373,972
Bemis Company, Inc.		8,300		231,736
Pactiv Corp. *		10,893		292,695
Sealed Air Corp.		13,338		323,180
				1,221,583
Cosmetics & Toiletries - 2.64%
Avon Products, Inc.		35,544		1,522,349
Colgate-Palmolive Company		42,295		3,215,689
Estee Lauder Companies, Inc., Class A		9,526		474,109
International Flavors & Fragrances, Inc.		6,705		269,608
Kimberly-Clark Corp.		34,851		2,149,610
Procter & Gamble Company		254,280		17,741,116
				25,372,481
Crude Petroleum & Natural Gas - 2.79%
Apache Corp.		27,784		3,177,934
Cabot Oil & Gas Corp.		8,608		382,540
Chesapeake Energy Corp.		40,058		1,938,807
Devon Energy Corp.		37,160		3,792,178
EOG Resources, Inc.		20,681		2,159,510
Hess Corp.		23,402		2,450,423
Marathon Oil Corp.		58,964		2,657,508
Noble Energy, Inc.		14,343		1,028,823
Occidental Petroleum Corp.		68,358		5,424,891
Southwestern Energy Company *		28,482		1,092,854
Sunoco, Inc.		9,733		431,951
XTO Energy, Inc.		44,703		2,253,478
				26,790,897
Domestic Oil - 0.06%
Range Resources Corp.		12,869		597,379
Drugs & Health Care - 0.50%
Wyeth		111,052		4,806,331
Educational Services - 0.07%
Apollo Group, Inc., Class A *		10,826		689,400
Electrical Equipment - 0.42%
Cooper Industries, Ltd., Class A		14,493		690,447
Emerson Electric Company		65,029		3,043,357

 

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electrical Equipment (continued)
Molex, Inc.		11,595	$	279,671
				4,013,475
Electrical Utilities - 3.00%
AES Corp. *		55,954		853,858
Allegheny Energy, Inc.		13,995		634,393
Ameren Corp.		17,447		730,331
American Electric Power Company, Inc.		33,448		1,305,810
CenterPoint Energy, Inc.		27,341		434,175
CMS Energy Corp.		18,764		254,628
Consolidated Edison, Inc.		22,707		928,716
Constellation Energy Group, Inc.		14,857		991,110
Dominion Resources, Inc.		48,141		2,095,578
DTE Energy Company		13,589		572,912
Dynegy, Inc., Class A *		41,382		246,637
Edison International		27,136		1,246,085
Entergy Corp.		15,950		1,649,071
Exelon Corp.		54,638		4,150,302
FirstEnergy Corp.		25,389		1,844,257
FPL Group, Inc.		33,992		2,041,560
Integrys Energy Group, Inc.		6,365		332,699
Pepco Holdings, Inc.		16,774		425,221
PG&E Corp.		29,756		1,229,815
Pinnacle West Capital Corp.		8,382		294,963
PPL Corp.		31,070		1,359,934
Public Service Enterprise Group, Inc.		42,353		1,726,732
Teco Energy, Inc.		17,554		313,163
The Southern Company		63,900		2,396,889
Xcel Energy, Inc.		35,886		736,022
				28,794,861
Electronics - 0.62%
Agilent Technologies, Inc. *		29,993		1,042,557
Harman International Industries, Inc.		4,846		164,909
Jabil Circuit, Inc.		17,421		293,718
L-3 Communications Holdings, Inc.		10,216		1,061,851
Thermo Fisher Scientific, Inc. *		34,832		2,109,426
Tyco Electronics, Ltd.		39,814		1,310,279
				5,982,740
Energy - 0.42%					��
Duke Energy Corp.		105,329		1,836,938
Progress Energy, Inc.		21,765		950,695
Sempra Energy		20,851		1,207,690
				3,995,323
Financial Services - 7.53%
American Express Company		96,483		3,828,445
Ameriprise Financial, Inc.		18,503		831,710
Bank of New York Mellon Corp.		95,267		3,297,191
Capital One Financial Corp.		31,250		1,379,375
Charles Schwab Corp.		77,344		1,855,483
CIT Group, Inc.		23,539		242,687
Citigroup, Inc.		453,439		8,610,807
CME Group, Inc.		5,584		1,872,762
Discover Financial Services		39,922		656,717
E*TRADE Financial Corp. *		39,401		126,083
Federal Home Loan Mortgage Corp.		53,865		242,931

 

The accompanying notes are an integral part of the financial statements.

153

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Index 500 Fund (continued)
		Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Federal National Mortgage Association			88,646	$	606,339
Federated Investors, Inc., Class B			7,217		241,336
Fidelity National Information Services, Inc.			14,301		312,477
Franklin Resources, Inc.			12,993		1,357,769
Goldman Sachs Group, Inc.			32,833		5,383,627
IntercontinentalExchange, Inc. *			5,878		517,440
Invesco, Ltd.			30,000		768,900
Janus Capital Group, Inc.			12,203		329,115
JP Morgan Chase & Company			287,603		11,069,839
Legg Mason, Inc.			11,754		523,406
Lehman Brothers Holdings, Inc.			58,023		933,590
Leucadia National Corp.			14,730		681,852
MasterCard, Inc., Class A			6,064		1,470,823
Merrill Lynch & Company, Inc.			126,807		3,594,978
Morgan Stanley			92,214		3,765,098
NYSE Euronext			22,072		895,902
PNC Financial Services Group, Inc.			28,805		2,072,520
SLM Corp. *			38,883		641,958
State Street Corp.			35,533		2,404,518
T. Rowe Price Group, Inc.			21,630		1,283,957
Tree.com, Inc. *	��		503		3,823
Washington Mutual, Inc.			123,607		500,608
Wells Fargo & Company			275,072		8,326,429
Western Union Company			61,632		1,702,276
					72,332,771
Food & Beverages - 3.50%
Campbell Soup Company			17,947		660,629
Coca-Cola Enterprises, Inc.			23,960		408,997
ConAgra Foods, Inc.			37,892		805,963
Dean Foods Company *			12,655		318,526
General Mills, Inc.			27,905		1,846,753
H.J. Heinz Company			26,248		1,320,799
Hershey Company			13,994		505,043
Kellogg Company			21,140		1,150,862
Kraft Foods, Inc., Class A			126,269		3,978,736
McCormick & Company, Inc.			10,677		431,885
Pepsi Bottling Group, Inc.			11,276		333,544
PepsiCo, Inc.			132,104		9,046,482
Sara Lee Corp.			58,828		794,178
Sysco Corp.			50,026		1,592,328
The Coca-Cola Company			166,379		8,663,355
Tyson Foods, Inc., Class A			22,773		330,664
William Wrigley, Jr. Company			17,881		1,421,182
					33,609,926
Forest Products - 0.10%
Weyerhaeuser Company			17,595		976,347
Furniture & Fixtures - 0.03%
Leggett & Platt, Inc.			13,853		309,060
Gas & Pipeline Utilities - 0.89%
El Paso Corp.			58,496		980,393
Nicor, Inc.			3,760		172,547
NiSource, Inc.			22,838		376,370
Questar Corp.			14,433		748,928
Spectra Energy Corp.			52,718		1,394,918
Transocean, Inc. *			26,559		3,378,305

 

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Gas & Pipeline Utilities (continued)
Williams Companies, Inc.		48,675	$	1,503,571
		8,555,032
Healthcare Products - 3.89%
Baxter International, Inc.		52,254		3,540,731
Becton, Dickinson & Company		20,328		1,776,261
Boston Scientific Corp. *		112,160		1,408,730
C.R. Bard, Inc.		8,269		772,738
Covidien, Ltd.		41,609		2,249,799
Intuitive Surgical, Inc. *		3,224		951,950
Johnson & Johnson		234,724		16,531,611
Medtronic, Inc.		93,536		5,107,066
Patterson Companies, Inc. *		10,106		328,849
St. Jude Medical, Inc. *		28,223		1,293,460
Stryker Corp.		19,893		1,336,611
Varian Medical Systems, Inc. *		10,463		660,843
Zimmer Holdings, Inc. *		19,281		1,395,751
				37,354,400
Healthcare Services - 1.59%
Cardinal Health, Inc.		29,723		1,634,171
Coventry Health Care, Inc. *		12,632		442,373
DaVita, Inc. *		8,720		500,441
Express Scripts, Inc. *		20,918		1,535,590
Humana, Inc. *		14,093		653,915
IMS Health, Inc.		15,103		335,589
Laboratory Corp. of America Holdings *		9,270		678,100
McKesson Corp.		23,094		1,334,371
Medco Health Solutions, Inc. *		42,199		1,977,023
Quest Diagnostics, Inc.		13,144		710,433
UnitedHealth Group, Inc.		102,338		3,116,192
WellPoint, Inc. *		43,825		2,313,522
				15,231,720
Holdings Companies/Conglomerates - 2.65%
General Electric Company		830,175		23,327,917
Loews Corp.		30,156		1,309,675
Textron, Inc.		20,759		853,195
				25,490,787
Homebuilders - 0.10%
Centex Corp.		10,285		166,823
D.R. Horton, Inc.		22,888		285,184
KB Home		6,416		133,453
Lennar Corp., Class A		11,648		153,171
Pulte Homes, Inc.		17,792		258,162
				996,793
Hotels & Restaurants - 1.07%
Darden Restaurants, Inc.		11,664		341,639
Marriott International, Inc., Class A		25,029		706,068
McDonald’s Corp.		94,410		5,858,140
Starbucks Corp. *		60,634		943,465
Starwood Hotels & Resorts Worldwide, Inc.		15,549		563,651
Wendy’s International, Inc.		7,300		177,171
Wyndham Worldwide Corp.		14,732		284,033
Yum! Brands, Inc.		39,457		1,407,826
				10,281,993

 

The accompanying notes are an integral part of the financial statements.

154

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Household Appliances - 0.09%
Black & Decker Corp.		5,092	$	322,069
Whirlpool Corp.		6,257		509,070
				831,139
Household Products - 0.19%
Clorox Company		11,481		678,527
Fortune Brands, Inc.		12,801		752,955
Newell Rubbermaid, Inc.		23,063		417,440
				1,848,922
Industrial Machinery - 1.38%
Cameron International Corp. *		18,046		840,763
Caterpillar, Inc.		51,203		3,621,588
Cummins, Inc.		16,917		1,102,312
Deere & Company		35,893		2,532,969
Dover Corp.		15,773		778,871
Ingersoll-Rand Company, Ltd., Class A		26,469		977,500
ITT Corp.		15,132		964,665
Manitowoc Company, Inc.		10,829		272,674
Pall Corp.		9,984		405,450
Parker-Hannifin Corp.		13,970		895,058
Terex Corp. *		8,354		420,123
W.W. Grainger, Inc.		5,416		487,602
				13,299,575
Insurance - 3.41%
Aetna, Inc.		40,379		1,741,950
AFLAC, Inc.		39,590		2,244,753
Allstate Corp.		45,873		2,070,248
American International Group, Inc.		223,945		4,812,578
Aon Corp.		24,881		1,181,599
Assurant, Inc.		7,976		466,038
Chubb Corp.		30,441		1,461,472
CIGNA Corp.		23,389		979,531
Cincinnati Financial Corp.		13,590		402,808
Genworth Financial, Inc., Class A		36,053		578,651
Hartford Financial Services Group, Inc.		26,212		1,653,453
Lincoln National Corp.		21,597		1,096,264
Marsh & McLennan Companies, Inc.		42,609		1,360,505
MBIA, Inc.		17,678		286,737
MetLife, Inc.		59,161		3,206,526
MGIC Investment Corp.		10,416		87,599
Principal Financial Group, Inc.		21,563		987,370
Progressive Corp.		56,429		1,042,244
Prudential Financial, Inc.		36,314		2,676,705
SAFECO Corp.		7,488		506,189
The Travelers Companies, Inc.		50,365		2,224,118
Torchmark Corp.		7,480		446,855
Unum Group		28,847		733,002
XL Capital, Ltd., Class A		25,323		508,992
				32,756,187
International Oil - 7.13%
Anadarko Petroleum Corp.		38,990		2,406,853
Chevron Corp.		172,274		14,870,692
ConocoPhillips		128,469		10,599,977
Exxon Mobil Corp.		440,074		35,210,321
Murphy Oil Corp.		15,823		1,242,580

 

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
International Oil (continued)
Nabors Industries, Ltd. *		23,447	$	834,713
Noble Corp.		22,385		1,125,741
Weatherford International, Ltd. *		56,602		2,183,705
				68,474,582
Internet Content - 1.17%
Google, Inc., Class A *		19,359		8,968,831
Yahoo!, Inc. *		114,592		2,220,793
				11,189,624
Internet Retail - 0.49%
Amazon.com, Inc. *		25,743		2,080,292
eBay, Inc. *		92,068		2,295,255
Expedia, Inc. *		17,404		307,355
				4,682,902
Internet Software - 0.25%
Akamai Technologies, Inc. *		14,013		320,898
Symantec Corp. *		69,973		1,561,098
VeriSign, Inc. *		16,217		518,457
				2,400,453
Investment Companies - 0.04%
American Capital, Ltd. *		16,899		367,384
Leisure Time - 0.87%
Carnival Corp.		36,378		1,348,169
Electronic Arts, Inc. *		26,521		1,294,490
International Game Technology		25,786		552,594
Walt Disney Company		158,681		5,133,330
				8,328,583
Life Sciences - 0.14%
Applied Biosystems, Inc.		14,048		512,612
PerkinElmer, Inc.		9,861		280,151
Waters Corp. *		8,338		569,068
				1,361,831
Liquor - 0.57%
Anheuser-Busch Companies, Inc.		59,391		4,030,273
Brown Forman Corp., Class B		7,025		505,870
Constellation Brands, Inc., Class A *		16,274		343,544
Molson Coors Brewing Company, Class B		11,656		555,409
				5,435,096
Manufacturing - 1.60%
3M Company		58,659		4,199,984
Danaher Corp.		21,217		1,730,671
Eaton Corp.		13,709		1,003,225
Harley-Davidson, Inc.		19,703		783,785
Honeywell International, Inc.		61,761		3,098,549
Illinois Tool Works, Inc.		33,092		1,641,694
Rockwell Automation, Inc.		12,222		577,001
Snap-on, Inc.		4,802		273,810
Stanley Works		6,528		313,018
Tyco International, Ltd.		40,165		1,722,275
				15,344,012
Medical-Hospitals - 0.03%
Tenet Healthcare Corp. *		39,906		240,633

 

The accompanying notes are an integral part of the financial statements.

155

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Metal & Metal Products - 0.14%
Precision Castparts Corp.		11,602	$	1,198,023
Titanium Metals Corp.		8,142		117,326
				1,315,349
Mining - 0.47%
Freeport-McMoRan Copper & Gold, Inc., Class B		31,918		2,850,916
Newmont Mining Corp.		37,815		1,705,456
				4,556,372
Office Furnishings & Supplies - 0.06%
Avery Dennison Corp.		8,869		427,840
Office Depot, Inc. *		22,747		160,139
				587,979
Paper - 0.21%
International Paper Company		35,616		963,413
MeadWestvaco Corp.		14,469		383,139
Plum Creek Timber Company, Inc.		14,251		707,135
				2,053,687
Petroleum Services - 1.98%
Baker Hughes, Inc.		25,655		2,052,656
BJ Services Company		24,476		657,181
ENSCO International, Inc.		12,022		814,851
Halliburton Company		72,659		3,192,636
Schlumberger, Ltd.		99,371		9,362,736
Smith International, Inc.		16,733		1,166,290
Tesoro Corp.		11,471		212,787
Valero Energy Corp.		44,018		1,530,066
				18,989,203
Pharmaceuticals - 4.78%
Abbott Laboratories		128,540		7,382,052
Allergan, Inc.		25,612		1,430,943
AmerisourceBergen Corp.		13,411		549,985
Barr Pharmaceuticals, Inc. *		9,000		607,860
Bristol-Myers Squibb Company		164,879		3,518,518
Celgene Corp. *		36,303		2,515,798
Eli Lilly & Company		82,387		3,843,354
Forest Laboratories, Inc. *		25,383		905,919
Gilead Sciences, Inc. *		76,832		4,047,510
Hospira, Inc. *		13,251		534,810
King Pharmaceuticals, Inc. *		20,541		234,989
Merck & Company, Inc.		178,782		6,377,154
Mylan, Inc. *		25,357		326,852
Pfizer, Inc.		563,467		10,767,854
Schering-Plough Corp.		135,046		2,619,892
Watson Pharmaceuticals, Inc. *		8,699		263,667
				45,927,157
Photography - 0.04%
Eastman Kodak Company		24,005		388,641
Publishing - 0.21%
Gannett Company, Inc.		19,047		338,846
McGraw-Hill Companies, Inc.		26,761		1,146,441
Meredith Corp.		3,083		87,496
The New York Times Company, Class A		11,975		155,555

 

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Publishing (continued)
The Washington Post Company, Class B		484	$	288,706
				2,017,044
Railroads & Equipment - 1.12%
Burlington Northern Santa Fe Corp.		24,420		2,622,708
CSX Corp.		33,723		2,181,204
Norfolk Southern Corp.		31,296		2,301,195
Union Pacific Corp.		43,039		3,610,972
				10,716,079
Real Estate - 1.11%
Apartment Investment & Management Company, Class A, REIT		7,928		280,981
Avalon Bay Communities, Inc., REIT		6,411		641,100
Boston Properties, Inc., REIT		9,970		1,021,626
Developers Diversified Realty Corp., REIT		9,977		334,329
Equity Residential, REIT		22,530		950,766
General Growth Properties, Inc., REIT		22,279		577,694
HCP, Inc., REIT		20,647		747,834
Host Hotels & Resorts, Inc., REIT		43,496		621,993
Kimco Realty Corp., REIT		21,131		784,805
ProLogis, REIT		21,834		940,172
Public Storage, Inc., REIT		10,284		908,283
Simon Property Group, Inc., REIT		18,720		1,776,154
Vornado Realty Trust, REIT		11,258		1,119,721
				10,705,458
Retail Grocery - 0.32%
Safeway, Inc.		36,481		960,910
SUPERVALU, Inc.		17,681		410,022
The Kroger Company		55,104		1,521,973
Whole Foods Market, Inc.		11,678		213,824
				3,106,729
Retail Trade - 4.51%
Abercrombie & Fitch Company, Class A		7,239		379,686
Bed Bath & Beyond, Inc. *		21,565		661,183
Best Buy Company, Inc.		28,810		1,289,824
Big Lots, Inc. *		6,799		201,046
Costco Wholesale Corp.		36,086		2,419,927
CVS Caremark Corp.		119,051		4,357,267
Dillard’s, Inc., Class A		4,765		60,849
Family Dollar Stores, Inc.		11,635		289,944
GameStop Corp., Class A *		13,469		590,885
Home Depot, Inc.		141,343		3,833,222
HSN, Inc. *		3,018		44,214
J.C. Penney Company, Inc.		18,493		720,672
Kohl’s Corp. *		25,547		1,256,146
Limited Brands, Inc.		24,945		518,856
Lowe’s Companies, Inc.		121,916		3,004,010
Macy’s, Inc.		35,021		729,137
Nordstrom, Inc.		14,633		455,086
RadioShack Corp.		10,927		207,722
Sears Holdings Corp. *		5,828		535,885
Staples, Inc.		58,479		1,415,192
Target Corp.		64,840		3,437,817
The Gap, Inc.		37,385		727,138
The TJX Companies, Inc.		35,373		1,281,918

 

The accompanying notes are an integral part of the financial statements.

156

John Hancock Funds II
 
PORTFOLIO OF INVESTMENTS — August 31, 2008
(showing percentage of total net assets)

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade (continued)
Tiffany & Company		10,492	$	463,432
Walgreen Company		82,494		3,005,256
Wal-Mart Stores, Inc.		193,797		11,447,589
				43,333,903
Sanitary Services - 0.26%
Allied Waste Industries, Inc. *		28,094		377,583
Ecolab, Inc.		14,616		668,536
Waste Management, Inc.		40,868		1,437,736
				2,483,855
Semiconductors - 2.43%
Advanced Micro Devices, Inc. *		50,523		317,790
Altera Corp.		24,969		565,298
Analog Devices, Inc.		24,164		675,625
Applied Materials, Inc.		112,894		2,023,060
Broadcom Corp., Class A *		37,252		896,283
Intel Corp.		477,079		10,910,797
KLA-Tencor Corp.		14,164		524,918
Linear Technology Corp.		18,479		603,155
LSI Logic Corp. *		53,092		353,062
MEMC Electronic Materials, Inc. *		18,968		931,139
Microchip Technology, Inc.		15,404		493,082
Micron Technology, Inc. *		63,369		268,685
National Semiconductor Corp.		17,977		385,247
Novellus Systems, Inc. *		8,317		188,546
NVIDIA Corp. *		46,203		584,006
QLogic Corp. *		11,041		206,246
Teradyne, Inc. *		14,291		133,335
Texas Instruments, Inc.		110,169		2,700,242
Xilinx, Inc.		23,260		604,295
				23,364,811
Software - 3.27%
Adobe Systems, Inc. *		44,295		1,897,155
Autodesk, Inc. *		18,652		662,706
BMC Software, Inc. *		15,908		517,965
CA, Inc.		32,519		777,529
Citrix Systems, Inc. *		15,286		462,707
Compuware Corp. *		21,793		249,094
Intuit, Inc. *		26,736		803,952
Microsoft Corp.		667,098		18,205,104
Novell, Inc. *		29,473		189,511
Oracle Corp. *		330,380		7,245,233
Teradata Corp. *		14,967		367,739
				31,378,695
Steel - 0.37%
AK Steel Holding Corp.		9,329		490,799
Allegheny Technologies, Inc.		8,421		412,629
Nucor Corp.		26,116		1,371,090
United States Steel Corp.		9,804		1,304,618
				3,579,136
Telecommunications Equipment & Services - 1.21%
American Tower Corp., Class A *		33,030		1,365,130
Ciena Corp. *		7,509		130,506
Corning, Inc.		131,172		2,694,273

 

Index 500 Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Telecommunications Equipment & Services (continued)
JDS Uniphase Corp. *		19,142	$	194,483
QUALCOMM, Inc.		134,819		7,098,220
Tellabs, Inc. *		33,101		172,456
				11,655,068
Telephone - 2.96%
AT&T, Inc.		494,820		15,829,292
CenturyTel, Inc.		8,783		339,287
Embarq Corp.		12,289		579,549
Frontier Communications Corp. *		27,006		339,466
Qwest Communications International, Inc.		126,727		479,028
Sprint Nextel Corp.		237,457		2,070,625
Verizon Communications, Inc.		237,426		8,338,401
Windstream Corp.		37,254		462,695
				28,438,343
Tires & Rubber - 0.04%
Goodyear Tire & Rubber Company *		20,036		392,906
Tobacco - 1.62%
Altria Group, Inc.		174,435		3,668,368
Lorillard, Inc.		14,486		1,046,468
Philip Morris International, Inc.		175,683		9,434,177
Reynolds American, Inc.		14,266		755,813
UST, Inc.		12,313		659,854
				15,564,680
Toys, Amusements & Sporting Goods - 0.11%
Hasbro, Inc.		11,547		431,858
Mattel, Inc.		30,144		582,683
				1,014,541
Transportation - 0.14%
C.H. Robinson Worldwide, Inc.		14,215		740,743
Expeditors International of Washington, Inc.		17,765		641,139
				1,381,882
Travel Services - 0.00%
Interval Leisure Group, Inc. *		3,018		39,204
Trucking & Freight - 0.82%
FedEx Corp.		25,825		2,138,827
Ryder Systems, Inc.		4,789		308,986
United Parcel Service, Inc., Class B		85,026		5,451,867
				7,899,680
TOTAL COMMON STOCKS (Cost $1,020,074,966)			$	933,815,825
SHORT TERM INVESTMENTS - 2.21%
Societe Generale North America, Inc.
2.10% due 09/02/2008	$	21,274,000	$	21,272,759
TOTAL SHORT TERM INVESTMENTS (Cost $21,272,759)			$	21,272,759
Total Investments (Index 500 Fund) (Cost $1,041,347,725) - 99.43%			$	955,088,584
Other Assets in Excess of Liabilities - 0.57%				5,479,671
TOTAL NET ASSETS - 100.00%			$	960,568,255

 

The accompanying notes are an integral part of the financial statements.

157

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund
		Shares or Principal Amount		Value
COMMON STOCKS - 93.22%
Argentina - 0.02%
Petrobras Energia Participaciones SA, ADR,
B Shares			2,810	$	31,865
Siderar SA, Class A Shares, ADR *			603		39,961
Telecom Argentina SA, ADR, B Shares *			2,416		32,133
					103,959
Australia - 4.36%
AGL Energy, Ltd.			11,007		144,400
Alumina, Ltd.			37,887		161,230
Amcor, Ltd.			22,470		105,461
AMP, Ltd.			51,437		304,521
Aristocrat Leisure, Ltd.			9,179		46,106
Asciano Group			13,391		55,612
Australia and New Zealand
Banking Group, Ltd.			57,483		809,453
Australian Stock Exchange, Ltd.			5,604		168,136
Axa Asia Pacific Holdings, Ltd.			21,366		94,223
Babcock & Brown, Ltd.			6,031		12,580
Bendigo Bank, Ltd.			6,921		68,119
BHP Billiton, Ltd.			100,647		3,534,900
Billabong International, Ltd.			3,737		40,896
Bluescope Steel, Ltd.			23,877		187,746
Boart Longyear Group			29,189		48,826
Boral, Ltd.			16,164		88,807
Brambles, Ltd.			43,820		287,521
Caltex Australia, Ltd.			3,106		33,223
Centro Properties Group, Ltd. *			20,831		3,069
Centro Retail Group			32,506		6,765
CFS Gandel Retail Trust			39,804		73,370
Coca-Cola Amatil, Ltd.			13,978		102,094
Cochlear, Ltd.			1,292		60,617
Commonwealth Bank of Australia, Ltd.			39,065		1,405,914
Computershare, Ltd.			12,207		94,064
Crown, Ltd.			10,846		84,779
CSL, Ltd.			16,362		571,038
CSR, Ltd.			26,805		60,827
Dexus Property Group, REIT	��		76,333		96,055
Fortescue Metals Group, Ltd. *			39,653		257,612
Foster’s Group, Ltd.			55,641		265,565
General Property Trust, Ltd.			53,315		78,661
Goodman Fielder, Ltd.			23,651		29,822
Harvey Norman Holding, Ltd.			11,715		36,970
Incitec Pivot, Ltd.			1,794		244,061
James Hardie Industries, Ltd.			10,713		42,472
John Fairfax Holdings, Ltd.			31,574		75,924
Leighton Holdings, Ltd.			3,430		135,354
Lend Lease Corp.			8,815		72,462
Lion Nathan, Ltd.			6,742		51,564
Macquarie Airports, Ltd.			17,250		46,957
Macquarie Goodman Group, Ltd.			36,678		98,845
Macquarie Group, Ltd.			8,060		298,877
Macquarie Infrastructure Group, Ltd.			68,523		127,699
Macquarie Office Trust			45,981		40,736
Metcash, Ltd.			20,343		68,459
Mirvac Group, Ltd.			26,736		65,598
National Australia Bank, Ltd.			47,573		987,135
Newcrest Mining, Ltd. *			14,336		336,187

 

International Equity Index Fund (continued)
		Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
NRMA Insurance Group, Ltd.			60,404	$	204,185
OneSteel, Ltd.			27,722		161,971
Orica, Ltd.			8,822		186,833
Origin Energy, Ltd.			25,103		346,294
Oxiana, Ltd.			71,727		106,787
Paladin Resources, Ltd. *			12,209		60,235
Perpetual Trust of Australia, Ltd.			899		34,332
Qantas Airways, Ltd.			24,727		71,186
QBE Insurance Group, Ltd.			26,362		536,151
Rio Tinto, Ltd.			8,704		943,716
Santos, Ltd.			17,927		306,668
Sims Group, Ltd.			4,776		140,004
Sonic Healthcare, Ltd.			8,085		99,759
St. George Bank, Ltd.			17,295		446,025
Stockland Company, Ltd.			42,218		188,939
Suncorp-Metway, Ltd.			26,252		254,879
TABCORP Holdings, Ltd.			15,378		112,337
Tattersall’s, Ltd.	��		28,142		62,999
Telstra Corp., Ltd.			154,565		573,758
Toll Holdings, Ltd.			21,023		124,473
Transurban Group, Ltd. *			36,903		170,673
Virgin Blue Holdings, Ltd.			12,681		6,219
Wesfarmers, Ltd., Price Protected Shares			4,019		108,112
Wesfarmers, Ltd.			18,721		490,822
Westfield Group			53,531		785,526
Westpac Banking Corp., Ltd.			54,875		1,096,661
Woodside Petroleum, Ltd.			13,824		742,527
Woolworths, Ltd.			36,968		892,500
WorleyParsons, Ltd.			5,077		159,819
					21,525,702
Austria - 0.44%
Andritz AG			1,322		81,073
Erste Bank der Oesterreichischen
Sparkassen AG			5,848		349,477
Immoeast Immobilien Anlagen AG *			13,779		88,275
Immofinanz Immobilien Anlage AG			13,546		123,036
Meinl European Land, Ltd. *			10,061		101,931
Oesterreichische Elektrizitaets AG, Class A			2,263		170,629
OMV AG			5,122		328,149
Raiffeisen International Bank Holding AG			1,810		197,856
Strabag SE			1,673		103,075
Telekom Austria AG			11,432		245,726
Voestalpine AG			3,847		208,242
Wiener Staedtische Allgemeine
Versicherung AG			1,338		83,247
Wienerberger Baustoffindustrie AG			2,430		63,767
					2,144,483
Belgium - 0.74%
Belgacom SA			5,604		223,146
Colruyt SA			556		151,588
Compagnie Nationale A Portefeuille, ADR			1,297		94,526
Delhaize Group			3,047		196,574
Dexia SA			16,055		226,896
Fortis Group SA			69,188		957,994
Groupe Bruxelles Lambert SA			2,539		264,008
Inbev NV			5,865		406,577

 

The accompanying notes are an integral part of the financial statements.

158

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Belgium (continued)
KBC Ancora, ADR		1,044	$	75,554
KBC Bancassurance Holding NV		4,868		462,500
Mobistar SA *		1,062		78,627
Solvay SA		1,845		225,893
UCB SA		3,288		128,577
Umicore		3,843		168,405
				3,660,865
Bermuda - 0.06%
Central European Media Enterprises, Ltd. *		1,041		81,626
SeaDrill, Ltd., GDR		8,336		227,493
				309,119
Brazil - 1.82%
All America Latina Logistica SA		12,700		146,868
Aracruz Celulose SA, SADR		845		46,720
B2W Companhia Global Do Varejo		2,100		74,917
Banco do Brasil SA		11,400		166,384
BM&F BOVESPA SA *		37,940		289,554
Brasil Telecom Participacoes SA, ADR		686		44,960
Brasil Telecom Participacoes SA		2,300		75,773
Centrais Eletricas Brasileiras SA, ADR,
B Shares * (a)		2,071		31,349
Centrais Eletricas Brasileiras SA, ADR *		3,447		62,055
Centrais Eletricas Brasileiras SA *		3,700		66,963
Cia Brasileira de Distribuicao Grupo Pao de
Acucar, ADR *		436		18,168
Cia de Bebidas das Americas, ADR (a)		743		40,129
Cia de Concessoes Rodoviarias, ADR		4,100		75,007
Cia de Saneamento Basico do Estado de Sao
Paulo *		3,741		84,666
Cia Energetica de Minas Gerais, ADR		5,411		116,769
Cia Vale do Rio Doce		27,206		725,549
Companhia Siderurgica Nacional SA, ADR		7,191		249,600
Companhia Siderurgica Nacional SA		4,666		161,736
Companhia Vale Do Rio Doce, ADR *		17,577		466,669
Companhia Vale Do Rio Doce, SADR *		24,806		589,639
Cosan SA Industria e Comercio *		3,405		54,250
CPFL Energia SA		4,100		85,522
Cyrela Brazil Realty SA		8,000		100,564
EDP- Energias do Brasil SA		2,700		47,176
Empresa Brasileira de Aeronautica SA		11,400		96,725
Empresa Brasileira de Aeronautica SA, ADR		1,575		53,471
Gafisa SA		3,629		51,964
Gerdau SA, SADR		11,612		217,261
Gerdau SA		5,575		87,079
Global Village Telecom Holding SA *		2,699		61,762
IronX Mineracao SA *		4,813		81,496
JBS SA		13,126		53,390
LLX Logistica SA *		3,621		7,575
Localiza Rent A CAR		4,173		41,986
Lojas Renner SA		4,100		74,202
MMX Mineracao e Metalicos SA *		3,621		35,521
MRV Engenharia e Participacoes SA		2,629		51,935
Natura Cosmeticos SA		4,800		55,892
OGX Petroleo e Gas Participacoes SA *		400		141,423
Perdigao SA *		3,600		90,133
Petroleo Brasileiro SA, ADR		15,342		809,137

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Brazil (continued)
Petroleo Brasileiro SA, SADR		21,468	$	922,480
Petroleo Brasileiro SA		39,884		1,043,835
Redecard SA		8,362		148,926
Souza Cruz SA		2,500		65,383
Tele Norte Leste Participacoes SA, ADR		5,457		126,712
Tele Norte Leste Participacoes SA		2,500		61,396
Tractebel Energia SA		5,100		63,046
Ultrapar Participacoes SA		2,400		86,194
Unibanco - Uniao de Bancos Brasileiros SA *		17,180		203,525
Unibanco - Uniao De Bancos
Brasileiros SA, ADR *		1,717		205,285
Usinas Siderurgicas de Minas Gerais
SA, SADR		3,255		114,187
Usinas Siderurgicas de Minas Gerais SA		2,100		72,276
Vivo Participacoes SA, ADR *		3,208		16,778
Votorantim Celulose e Papel SA, SADR *		1,189		25,112
				8,987,074
Canada - 6.93%
Addax Petroleum Corp.		2,300		87,880
Agnico-Eagle Mines, Ltd.		4,600		264,052
Agrium, Inc.		4,900		414,456
Alimentation Couche Tard, Inc., ADR		3,500		42,852
ARC Energy Trust		2,700		76,820
Astral Media, Inc.		1,200		37,566
Bank Nova Scotia Halifax		30,500		1,408,952
Bank of Montreal		15,500		679,238
Barrick Gold Corp.		26,508		922,462
BCE, Inc.		7,873		298,296
Biovail Corp.		3,200		34,960
Bombardier, Inc. *		43,000		334,102
Brookfield Asset Management, Inc.		15,125		469,362
Brookfield Properties Corp.		7,550		158,779
CAE, Inc.		6,000		63,289
Cameco Corp.		11,100		333,899
Canadian Imperial Bank of Commerce		11,800		713,134
Canadian National Railway Company		14,600		766,026
Canadian Natural Resources, Ltd.		16,700		1,425,587
Canadian Oil Sands Trust		7,500		363,487
Canadian Pacific Railway, Ltd.		4,600		280,644
Canadian Tire Corp., Ltd. (a)		2,700		137,238
Canadian Utilities, Ltd.		1,200		48,710
CGI Group, Inc. *		7,100		77,500
CI Financial Income Fund *		1,500		32,845
Eldorado Gold Corp. *		7,900		62,795
Enbridge, Inc.		10,700		448,739
EnCana Corp.		22,600		1,698,725
Enerplus Resources Fund		4,500		195,122
Ensign Energy Services, Inc. *		4,800		108,088
Fairfax Financial Holdings, Ltd.		600		131,663
Finning International, Inc.		4,400		100,117
First Quantum Minerals, Ltd.		1,700		109,672
Fording Canadian Coal Trust		4,700		418,078
Fortis, Inc.		3,800		93,336
George Weston, Ltd. *		1,300		57,703
Gerdau Ameristeel Corp.		5,700		80,524
Gildan Activewear, Inc. *		2,800		65,715

 

The accompanying notes are an integral part of the financial statements.

159

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Goldcorp, Inc.		21,653	$	736,585
Great-West Lifeco, Inc.		8,500		256,969
Groupe Aeroplan, Inc.		6,736		105,309
Harvest Energy Trust		3,100		63,501
Husky Energy, Inc.		8,100		358,084
IGM Financial, Inc. *		4,000		167,225
Imperial Oil, Ltd.		9,800		504,029
ING Canada, Inc., ADR		1,400		52,741
Inmet Mining Corp.		1,300		78,296
Ivanhoe Mines, Ltd. *		5,800		65,276
Jazz Air Income Fund, ADR *		415		2,302
Kinross Gold Corp.		19,158		315,752
Loblaw Companies, Ltd. *		2,600		74,170
Lundin Mining Corp. *		7,900		37,796
Magna International, Inc.		2,900		166,549
Manulife Financial Corp. (c)		45,800		1,643,848
MDS, Inc. *		3,100		47,501
Methanex Corp.		2,600		66,065
Metro, Inc.		3,400		94,462
National Bank of Canada *		4,800		226,122
Nexen, Inc.		14,600		457,608
Niko Resources, Ltd. *		1,100		79,874
Nortel Networks Corp. *		10,260		62,035
Nova Chemicals Corp.		2,100		60,915
Onex Corp.		2,300		61,843
OPTI Canada, Inc. *		4,400		79,770
Pan American Silver Corp. *		1,500		40,262
Penn West Energy Trust		11,815		346,839
Petro-Canada		14,600		645,574
Potash Corp. of Saskatchewan, Inc.		9,700		1,687,862
Power Corp. Of Canada *		10,900		337,532
Power Financial Corp. *		7,500		244,608
Precision Drilling Trust, ADR		1,200		25,474
Provident Energy Trust		5,500		58,740
QLT, Inc. *		250		942
Research In Motion, Ltd. *		15,400		1,876,340
RioCan Real Estate Investment Trust		2,600		52,744
Ritchie Bros. Auctioneers, Inc.		2,100		55,971
Rogers Communications, Inc., Class B		15,300		554,477
Royal Bank of Canada		39,400		1,808,957
Saputo, Inc.		3,600		93,441
Shaw Communications, Inc.		9,800		211,358
Sherritt International Corp., ADR		10,500		94,439
Shoppers Drug Mart Corp.		6,200		323,488
Silver Wheaton Corp. *		5,900		68,346
Sino-Forest Corp. *		5,700		107,365
Sun Life Financial, Inc.		17,500		674,915
Suncor Energy, Inc.		28,000		1,603,315
Talisman Energy, Inc.		31,400		555,074
Teck Cominco, Ltd.		13,200		551,471
Telus Corp. - Non Voting Shares		4,900		193,776
Telus Corp. *		1,400		56,235
Thomson Corp.		7,100		239,052
TMX Group, Inc.		3,000		97,843
Toronto Dominion Bank Ontario		24,200		1,416,035
TransAlta Corp.		5,700		199,430

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Trans-Canada Corp.		17,500	$	663,708
Trican Well Service, Ltd. *		3,100		62,596
Uranium One, Inc. *		19,000		81,418
Yamana Gold, Inc.		20,493		222,532
Yellow Pages Income Fund (a)		5,800		54,952
				34,214,151
Chile - 0.26%
Banco Santander Chile SA, ADR		2,667		117,375
Cia Cervecerias Unidas SA, ADR		1,107		38,291
Compania de Telecomunicaciones de Chile
SA, SADR		7,734		42,924
Corpbanca SA, SADR		650		17,394
Distribucion y Servicio D&S SA, ADR		1,566		35,626
Embotelladora Andina SA, ADR, Series A		915		14,850
Embotelladora Andina SA, ADR, Series B (a)		1,006		18,339
Empresa Nacional de Electricidad SA, ADR		7,069		321,640
Enersis SA, SADR		16,935		290,266
Lan Airlines SA, SADR		4,620		54,193
Sociedad Quimica y Minera de
Chile SA, ADR, B Shares		7,170		274,754
Vina Concha Y Toro SA, ADR (a)		911		36,121
				1,261,773
China - 1.44%
Air China, Ltd., Class H		83,466		42,552
Aluminum Corp. of China, Ltd.		122,780		108,270
Angang New Steel Company, Ltd. Class H		35,012		47,391
Bank of China, Ltd.		821,500		353,122
Bank of Communications Company, Ltd.,
Class H		187,879		215,428
Beijing Capital International Airport Company,
Ltd., Class H		61,211		48,151
Beijing Datang Power Generation
Company, Ltd., Class H		113,136		74,458
BYD Company, Ltd., H Shares		24,494		28,091
Chaoda Modern Agriculture Holdings, Ltd.		70,399		74,763
China Communications Services Corp., Ltd.,
Class H		60,000		48,654
China Construction Bank		1,039,118		842,187
China Life Insurance Company, Ltd.		218,376		830,026
China Mengniu Dairy Company, Ltd.		35,498		107,138
China Merchants Bank Company, Ltd.		85,300		284,425
China Oilfield Services, Ltd., H Shares		52,000		69,176
China Petroleum & Chemical Corp., Class H		524,030		504,650
China Shipping Container Lines Company, Ltd.		134,076		32,730
China Shipping Development Company, Ltd.,
Class H		41,568		98,217
China Telecom Corp., Ltd. (a)		442,396		225,130
China Travel International Investment
Hong Kong, Ltd. (a)		175,709		38,328
COSCO Holdings		88,879		168,612
Country Garden Holdings Company, Ltd. (a)		104,000		46,448
Dongfeng Motor Group Company, Ltd.		130,780		55,222
Foxconn International Holdings, Ltd. *		81,000		60,112
Guangdong Investment, Ltd.		96,780		32,860
Guangshen Railway Company, Ltd., Class H		61,211		27,509

 

The accompanying notes are an integral part of the financial statements.

160

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
China (continued)
Guangzhou R&F Properties Company, Ltd., H
Shares		31,200	$	53,989
Huaneng Power International, Inc., Class H		100,564		74,800
Industrial & Commercial Bank of China, Ltd.		1,289,000		882,595
Jiangsu Expressway, Ltd.		46,855		35,878
Jiangxi Copper Company, Ltd., Class H		43,925		69,712
KWG Property Holding, Ltd.		34,500		15,762
Lenovo Group, Ltd.		150,564		100,915
Maanshan Iron & Steel Company, Ltd.		77,925		34,871
PetroChina Company, Ltd., Class H		655,739		840,662
PICC Property & Casualty Company, Ltd.,
Class H		84,780		47,868
Shanghai Electric Group Company, Ltd. *		133,136		54,813
Shui On Land, Ltd. (a)		71,500		54,256
Sinopec Shanghai Petrochemical
Company, Ltd., Class H		92,066		28,966
Tingyi Cayman Islands Holding Corp., GDR		60,000		71,792
Yanzhou Coal Mining Company, Ltd., Class H		63,210		109,252
Zhejiang Expressway Company, Ltd., Class H		54,282		36,223
Zijin Mining Group, Ltd.		119,686		80,964
ZTE Corp., Class H		11,139		52,837
				7,109,805
Colombia - 0.05%
BanColombia SA, ADR		7,807		259,973
Czech Republic - 0.15%
CEZ AS		5,951		446,553
Komercni Banka AS		489		107,233
Telefonica Czech Republic AS		3,617		110,933
Unipetrol AS		1,919		23,370
Zentiva NV		603		38,159
				726,248
Denmark - 0.75%
A P Moller Maersk AS, Series A		17		190,496
A P Moller Maersk AS		33		369,195
Carlsberg AS, B Shares		2,200		195,298
Coloplast AS		923		66,082
Danisco AS (a)		1,700		114,140
Danske Bank AS		13,700		385,513
DSV AS, ADR		5,800		112,090
FLS Industries AS, B Shares		1,800		144,320
Jyske Bank *		1,841		103,088
Novo Nordisk AS		14,250		795,461
Novozymes AS, B Shares		1,550		155,655
Rockwool International AS, B Shares		400		38,771
Sydbank AS		2,200		71,683
Topdanmark AS *		500		73,745
TrygVesta AS		997		67,694
Vestas Wind Systems AS *		5,600		759,883
William Demant Holdings AS *		900		43,444
				3,686,558
Egypt - 0.13%
Commercial International Bank		5,542		48,231
Egypt Kuwait Holding Company		12,351		29,692
Egyptian Company for Mobile Services		780		18,155
Egyptian Financial Group-Hermes Holding		7,160		63,486

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Egypt (continued)
EL Ezz Aldekhela Steel Alexandria		61	$	16,523
EL EZZ Steel Company		1,819		8,653
ElSwedy Cables Holding Company *		1,960		49,192
Orascom Construction Industries		2,484		156,989
Orascom Telecom Holding SAE		15,017		154,089
Sidi Kerir Petrochemicals Company		9,437		29,689
Talaat Moustafa Group *		21,101		25,400
Telecom Egypt		7,610		23,360
				623,459
Finland - 1.17%
Cargotec Corp. Oyj, B Shares		1,525		46,752
Elisa Oyj, Class A		4,450		94,927
Fortum Corp. Oyj		13,679		561,465
Kesko Oyj		2,100		64,691
Kone Corp. Oyj		5,028		155,725
Metra Oyj, B Shares		2,600		149,316
Metso Oyj		4,200		163,235
Neste Oil Oyj		4,472		106,634
Nokia AB Oyj		121,650		3,045,796
Nokian Renkaat Oyj		3,700		131,767
OKO Bank PLC, Series A		3,600		58,100
Orion Oyj, Series B		3,113		58,594
Outokumpu Oyj		4,200		100,572
Rautaruukki Oyj *		3,200		108,540
Sampo Oyj, A Shares		13,901		349,713
SanomaWSOY Oyj		2,870		56,957
Stora Enso Oyj, Series R		18,000		180,352
UPM-Kymmene Oyj		16,422		280,579
YIT Oyj		4,142		64,429
				5,778,144
France - 7.07%
Accor SA		5,994		396,390
Aeroports de Paris		897		78,176
Air France KLM		2,755		66,282
Air Liquide		7,770		943,746
Alcatel-Lucent *		73,858		449,017
Alstom		6,373		647,383
Atos Origin SA		1,722		92,545
AXA Group SA		46,657		1,488,705
BNP Paribas SA		24,808		2,225,404
Bouygues SA		7,278		438,655
Bureau Veritas SA		1,080		61,275
Cap Gemini SA		4,408		260,250
Carrefour SA		19,252		1,017,657
Casino Guich-Perrachon SA		1,527		149,636
Christian Dior SA		1,450		154,245
Cie Generale de Geophysique-Veritas *		3,270		134,265
CNP Assurances SA		1,093		131,196
Compagnie de Saint-Gobain SA		8,521		520,598
Compagnie Generale des Etablissements
Michelin, Class B		3,967		257,141
Credit Agricole SA		26,938		571,112
Dassault Systemes SA		1,400		84,613
Eiffage SA		991		65,831
Electricite de France		6,190		529,395

 

The accompanying notes are an integral part of the financial statements.

161

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
France (continued)
Eramet		138	$	75,564
Essilor International SA		5,581		296,896
Eurazeo		678		66,601
European Aeronautic Defence &
Space Company		10,486		234,744
Eutelsat Communications *		2,326		64,480
France Telecom SA		56,355		1,661,625
Gaz de France		32,859		1,891,603
Gecina SA		319		39,351
Groupe DANONE		13,563		945,430
Hermes International SA		2,194		311,578
ICADE		430		40,160
Imerys SA		796		50,979
JC Decaux SA		1,327		29,388
Klepierre SA		1,727		68,843
Lafarge SA		4,515		544,681
Lagardere S.C.A.		3,177		177,346
Legrand SA, ADR		2,523		64,502
L’Oreal SA		7,189		713,577
LVMH Moet Hennessy SA		7,204		765,051
M6-Metropole Television		1,462		32,555
Natixis		11,562		97,130
Neopost SA		752		78,400
PagesJaunes Groupe SA		3,253		46,537
Pernod-Ricard SA		5,092		475,999
PPR SA		2,207		256,650
PSA Peugeot Citroen SA		5,018		238,413
Publicis Groupe SA		3,212		107,655
Renault Regie Nationale SA		5,724		477,972
Safran SA		4,155		73,841
Sanofi-Aventis SA		31,173		2,211,585
Schneider Electric SA		6,747		678,201
SCOR SE		4,287		98,766
Societe BIC SA		609		36,742
Societe Generale		16,455		1,587,291
Societe Television Francaise 1		2,677		46,512
Sodexho Alliance		2,414		162,890
STMicroelectronics NV		21,779		284,469
Suez Environnement SA *		7,293		209,476
Suez SA Strip VVPR *		1,452		21
Technip SA		3,265		267,958
Thales SA		2,184		123,089
Total SA		65,371		4,696,000
Unibail-Rodamco, REIT		2,483		515,546
Valeo SA		1,584		56,479
Vallourec SA		1,521		423,128
Veolia Environnement SA		11,168		599,015
Vinci SA		12,462		707,658
Vivendi SA		35,190		1,359,495
Wendel		736		81,149
Zodiac SA		1,000		50,144
				34,886,682
Germany - 6.22%
Adidas-Salomon AG		6,153		360,211
Allianz SE		13,787		2,296,559
Arcandor AG *		4,443		35,168

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
BASF SE		29,565	$	1,705,726
Bayer AG		23,286		1,840,346
Bayerische Motoren Werke (BMW) AG		10,490		429,149
Beiersdorf AG		2,505		145,493
Bilfinger Berger AG		1,183		83,186
Celesio AG		2,977		113,880
Commerzbank AG		18,869		552,710
Continental AG *		4,743		514,212
Daimler AG		28,150		1,640,874
Deutsche Bank AG		15,516		1,317,722
Deutsche Boerse AG		6,040		570,626
Deutsche Lufthansa AG		6,658		142,970
Deutsche Post AG		27,442		642,693
Deutsche Postbank AG		2,305		150,360
Deutsche Telekom AG		86,626		1,434,352
E.ON AG		58,316		3,405,636
Fraport AG, ADR		1,246		80,137
Fresenius AG		720		60,256
Fresenius Medical Care AG		5,911		316,967
Fresenius SE		2,532		206,230
GEA Group AG		4,996		157,045
Hamburger Hafen und Logistik AG		676		42,275
Hannover Rueckversicherung AG		1,604		68,438
Heidelbergcement AG		665		74,874
Henkel AG & Company KGaA		3,909		136,592
Henkel AG & Company KGaA		5,427		212,698
Hochtief AG		1,513		127,424
Hypo Real Estate Holding AG		5,122		124,651
Infineon Technologies AG *		21,487		183,164
IVG Immobilien AG		2,299		42,232
K&S AG		4,591		554,076
Linde AG		4,042		508,420
MAN AG		3,416		333,320
Merck KGAA *		2,080		238,337
Metro AG		3,637		202,197
Muenchener Rueckversicherungs-
Gesellschaft AG		6,282		975,324
ProSieben Sat.1 Media AG		1,970		20,112
Puma AG		164		51,520
Q-Cells AG *		1,794		180,709
Rheinmetall AG		1,272		80,970
RWE AG		13,595		1,466,536
Salzgitter AG		1,375		210,754
SAP AG		26,643		1,492,797
Siemens AG		26,537		2,880,527
Solarworld AG		2,809		145,618
Thyssen Krupp AG		11,090		553,289
TUI AG		6,232		123,940
United Internet AG		3,344		48,665
Volkswagen AG		4,484		1,339,069
Wacker Chemie AG		416		76,436
				30,697,472
Greece - 0.48%
Alpha Bank A.E.		11,394		289,931
Bank of Piraeus SA		10,462		281,981
Coca-Cola Hellenic Bottling Company SA		4,795		118,091

 

The accompanying notes are an integral part of the financial statements.

162

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Greece (continued)
EFG Eurobank Ergas SA		10,407	$	209,353
Hellenic Petroleum SA		4,660		58,142
Hellenic Telecommunications Organization SA		8,780		187,670
Marfin Financial Group SA Holdings *		20,772		131,151
National Bank of Greece SA		15,489		682,770
OPAP SA		7,290		255,298
Public Power Corp.		2,990		75,352
Titan Cement Company SA		2,180		80,731
				2,370,470
Hong Kong - 2.91%
Agile Property Holdings, Ltd.		63,211		46,561
Alibaba.com, Ltd. * (a)(h)		32,500		40,906
Anhui Conch Cement Company, Ltd., Class H *		15,070		77,910
ASM Pacific Technology, Ltd.		4,500		30,318
Bank of East Asia, Ltd.		40,142		158,680
Beijing Enterprises Holdings, Ltd.		12,714		47,194
Belle International Holdings, Ltd., GDR		84,888		85,247
BOC Hong Kong Holdings, Ltd.		117,500		261,292
C C Land Holdings, Ltd.		20,000		8,434
Cathay Pacific Airways, Ltd.		33,000		61,195
Cheung Kong Holdings, Ltd.		41,000		582,772
Cheung Kong Infrastructure Holdings, Ltd.		17,000		73,729
China Agri-Industries Holdings, Ltd. *		65,784		44,499
China BlueChemical, Ltd.		68,000		43,676
China CITIC Bank		170,000		97,444
China Coal Energy Company, H Shares		93,595		156,690
China Communications
Construction Company , Ltd.		130,665		220,894
China Eastern Airlines Corp., Ltd. *		66,639		13,800
China Everbright, Ltd.		31,784		57,064
China High Speed Transmission Equipment
Group Company, Ltd.		29,000		56,407
China Insurance International Holdings
Company, Ltd.		26,000		53,828
China Merchants Holdings International
Company, Ltd.		38,100		140,456
China Mobile, Ltd.		184,970		2,099,777
China National Building Material Company,
Ltd.		28,000		43,228
China Netcom Group Corp Hong Kong, Ltd.		52,000		123,024
China Overseas Land & Investment, Ltd.		124,921		207,496
China Railway Construction Corp. *		55,000		75,528
China Railway Group, Ltd. *		124,000		95,147
China Resource Power Holdings, Ltd.		47,211		116,056
China Resources Enterprises, Ltd.		36,855		99,737
China Resources Land, Ltd.		51,211		59,955
China Shenhua Energy Company, Ltd.		104,500		356,842
China Southern Airlines Company, Ltd. *		30,855		9,769
China Unicom, Ltd.		114,000		180,348
Chinese Estates Holdings, Ltd.		28,215		39,473
CITIC International Financial Holdings, Ltd. *		62,000		49,733
Citic Pacific, Ltd.		39,033		135,417
CITIC Resources Holdings, Ltd. *		98,900		23,527
CLP Holdings, Ltd.		62,500		507,028
CNOOC, Ltd.		480,720		747,423
CNPC Hong Kong, Ltd.		100,000		38,335

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Cosco Pacific, Ltd.		38,855	$	59,102
Denway Motors, Ltd.		175,559		62,548
Dongfang Electrical Machinery Company, Ltd.		6,000		18,589
Esprit Holdings, Ltd.		32,000		264,168
Fosun International		65,500		36,609
Gome Electrical Appliances Holdings, Ltd.		205,708		84,467
Guangzhou Investment Company, Ltd.		259,493		34,514
Hang Lung Group, Ltd. (a)		30,000		127,794
Hang Lung Properties, Ltd.		59,000		186,754
Hang Seng Bank, Ltd.		22,900		451,663
Harbin Power Equipment Company, Ltd.		24,000		29,568
Henderson Investment, Ltd.		12,000		796
Henderson Land Development Company, Ltd.		30,508		183,902
Hengan International Group Company, Ltd.,
GDR		22,000		73,594
Hidili Industry International Development, Ltd.		37,000		42,900
Hong Kong & China Gas Company, Ltd. (a)		125,870		282,411
Hong Kong Aircraft Engineering Company		1,600		17,815
Hong Kong Electric Holdings, Ltd. (a)		44,000		279,367
Hong Kong Exchange & Clearing, Ltd.		30,000		387,525
Hopewell Holdings, Ltd.		23,000		87,640
Hopson Development Holdings, Ltd., GDR (a)		26,000		25,772
Hutchison Telecommunications
International, Ltd. *		59,000		73,631
Hutchison Whampoa, Ltd.		66,000		612,707
Hysan Development Company, Ltd.		15,968		43,637
Kerry Properties, Ltd.		18,601		88,699
Kingboard Chemical Holdings, Ltd.		14,000		63,000
Lee & Man Paper Manufacturing, Ltd.		8,000		7,989
Li & Fung, Ltd.		63,600		193,394
Li Ning Company, Ltd.		22,749		56,513
Lifestyle International Holdings, Ltd.		15,500		19,704
Link, REIT		68,679		161,455
Mongolia Energy Company, Ltd. *		89,000		82,209
MTR Corp., Ltd.		41,073		132,235
New World Development Company, Ltd.		69,724		105,824
Nine Dragons Paper Holdings, Ltd.		61,600		37,716
Noble Group, Ltd.		52,400		70,803
NWS Holdings, Ltd.		24,205		53,443
Orient Overseas International, Ltd.		5,000		17,126
Pacific Basin Shipping, Ltd.		49,000		66,427
Parkson Retail Group, Ltd.		42,500		60,962
PCCW, Ltd.		99,000		61,940
Ping An Insurance Group Company of China,
Ltd.		39,355		287,178
Shanghai Industrial Holdings, Ltd.		18,070		48,772
Shangri-La Asia, Ltd.		38,000		72,967
Shimao Property Holdings, Ltd., GDR		49,500		55,407
Shougang Concord International Enterprises
Company, Ltd.		128,000		30,324
Shun Tak Holdings, Ltd.		30,000		17,461
Sino Land Company, Ltd.		49,728		87,047
Sinofert Holdings, Ltd.		76,000		49,398
Sino-Ocean Land Holdings, Ltd.		122,500		60,347
Soho China, Ltd.		73,500		38,295
Sun Hung Kai Properties, Ltd.		43,000		586,324
Swire Pacific, Ltd., Class A		23,500		234,734

 

The accompanying notes are an integral part of the financial statements.

163

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Television Broadcasting Company, Ltd.		7,000	$	39,072
Tencent Holdings, Ltd.		30,000		254,590
Wharf Holdings, Ltd.		39,625		143,204
Wheelock and Company, Ltd.		27,000		64,037
Wing Hang Bank, Ltd.		6,085		69,166
Wing Lung Bank, Ltd.		2,500		47,643
Yue Yuen Industrial Holdings, Ltd.		25,500		70,648
				14,370,365
Hungary - 0.14%
Gedeon Richter Rt.		346		68,568
Magyar Telekom Rt.		11,601		59,473
MOL Magyar Olaj & Gazipari Rt.		1,808		194,224
OTP Bank Rt. *		8,169		366,365
				688,630
India - 1.24%
Bajaj Auto, Ltd., ADR (h)		1,087		11,914
Bajaj Auto, Ltd.		1,087		14,548
Bajaj Finserv, Ltd.		1,087		13,287
Dr. Reddy’s Laboratories, Ltd., ADR		11,962		163,401
Grasim Industries, Ltd., ADR (h)		2,801		120,751
ICICI Bank, Ltd., SADR		25,974		805,713
Infosys Technologies, Ltd., ADR		31,087		1,283,271
Larsen & Toubro, Ltd., ADR (h)		1,366		80,643
Ranbaxy Laboratories, Ltd., ADR		11,751		129,261
Reliance Communication, Ltd., ADR * (h)		42,677		383,884
Reliance Energy, Ltd., ADR (h)		447		30,271
Reliance Industries, Ltd., GDR (h)		21,376		2,058,509
Reliance Natural Resources, Ltd., ADR * (a)(h)		8,956		38,588
Satyam Computer Services, Ltd., ADR		17,159		381,959
State Bank of India GDR		50		3,163
State Bank of India, Ltd., ADR		2,896		183,896
Tata Communications, Ltd., ADR (a)		1,347		25,068
Tata Motors, Ltd., SADR		13,132		129,482
Wipro, Ltd., ADR (a)		24,056		278,568
				6,136,177
Indonesia - 0.29%
Aneka Tambang Tbk PT		82,500		16,865
Astra Agro Lestari Tbk PT		10,000		19,465
Astra International Tbk PT		64,000		144,126
Bank Central Asia Tbk PT		396,500		136,317
Bank Danamon Indonesia Tbk PT		42,500		24,855
Bank Internasional Indonesia Tbk PT		929,500		46,729
Bank Mandiri Tbk PT		256,500		78,420
Bank Rakyat Indonesia Tbk PT		180,000		113,893
Bumi Resources Tbk PT		511,500		304,072
Indocement Tunggal Prakarsa Tbk PT		23,000		15,985
Indofood Sukses Makmur Tbk PT		105,500		25,693
Indosat Tbk PT		60,500		39,934
International Nickel Indonesia Tbk PT		50,000		20,200
Perusahaan Gas Negara Tbk PT		347,500		96,068
PT Telekomunikiasi Indonesia, ADR		4,500		156,690
Semen Gresik Persero Tbk PT		35,000		15,368
Telekomunikasi Indonesia Tbk PT		112,500		98,585
Truba Alam Manunggal Engineering PT *		180,000		9,312
Unilever Indonesia Tbk PT		38,000		29,938

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Indonesia (continued)
United Tractors Tbk PT		32,000	$	35,884
				1,428,399
Ireland - 0.40%
Allied Irish Banks PLC - London Exchange		9,456		119,650
Allied Irish Banks PLC		18,191		229,252
Anglo Irish Bank Corp. PLC		23,660		202,957
Bank of Ireland - London Exchange		11,293		90,798
Bank of Ireland		21,227		170,157
C&C Group PLC		179		646
CRH PLC - London Exchange		5,177		135,898
CRH PLC		11,628		303,326
Elan Corp. PLC *		3,492		47,012
Elan Corp. PLC *		10,203		140,412
Experian Group, Ltd.		32,908		247,875
Greencore Group PLC		30		87
Irish Life & Permanent PLC - London
Exchange		2,216		20,713
Irish Life & Permanent PLC		6,111		56,900
Kerry Group PLC		2,619		71,025
Kerry Group PLC - London		1,487		40,186
Paddy Power PLC		146		3,416
Ryanair Holdings PLC, SADR *		1,496		34,049
Smurfit Kappa Group PLC		5,879		37,746
				1,952,105
Israel - 0.48%
Africa-Israel Investments, Ltd.		311		11,739
Aladdin Knowledge Systems, ADR *		122		1,538
Alvarion, Ltd., ADR *		649		4,205
Audio Codes, Ltd., ADR *		664		2,756
Bank Hapoalim, Ltd.		32,717		127,262
Bank Leumi Le-Israel, Ltd.		29,578		121,991
Bezek Israeli Telecommunications Corp., Ltd.		26,127		46,557
Cellcom Israel, Ltd.		2,408		75,732
Check Point Software Technologies, Ltd. *		5,245		128,450
Delek Group, Ltd.		53		6,373
Discount Investment Corp.		1,168		26,123
Elbit Systems, Ltd.		841		46,185
Gazit Globe, Ltd.		586		4,692
Given Imaging Corp., ADR * (a)		209		3,288
ICL Israel Chemicals, Ltd.		15,125		251,069
IDB Development Corp., Ltd.		138		3,002
Israel Corp., Ltd. *		77		78,114
Israel Discount Bank, Ltd. *		11,163		18,345
Koor Industries, Ltd.		225		9,892
Makhteshim-Agam Industries, Ltd.		10,965		74,034
Nice Systems, Ltd. *		2,378		72,566
Oil Refineries, Ltd.		23,107		14,539
Ormat Industries		1,927		21,464
Partner Communications, Ltd.		3,696		79,939
RADWARE, Ltd., ADR *		413		4,027
Syneron Medical, Ltd., ADR *		423		6,984
Teva Pharmaceutical Industries, Ltd.		22,952		1,087,116
United Mizrahi Bank, Ltd.		3,045		19,361
				2,347,343

 

The accompanying notes are an integral part of the financial statements.

164

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Italy - 2.69%
A2A SpA		43,914	$	137,253
Alleanza Assicurazioni SpA		14,266		135,399
Assicurazioni Generali SpA		32,935		1,097,346
Autogrill SpA (a)		3,858		48,010
Autostrade SpA		8,084		214,001
Banca Carige SpA		23,801		79,479
Banca Intesa SpA - Non convertible		29,386		142,215
Banca Monte dei Paschi Siena SpA		62,754		164,841
Banca Popolare di Milano SpA		13,509		134,542
Banche Popolari Unite SpA		19,038		425,566
Banco Popolare Societa Cooperativa		19,738		375,981
Bulgari SpA		5,567		56,932
Enel SpA		134,705		1,236,830
Eni SpA		80,451		2,609,613
Fiat SpA		21,905		338,647
Finmeccanica SpA		9,505		254,222
Fondiaria-Sai SpA		2,243		62,148
IFIL - Investments SpA		10,952		71,347
Intesa Sanpaolo SpA		239,443		1,285,295
Italcementi SpA, RNC		4,453		51,024
Italcementi SpA		2,818		39,466
Lottomatica SpA		2,312		71,140
Luxottica Group SpA		4,975		124,840
Mediaset SpA		23,863		173,253
Mediobanca SpA		15,887		226,309
Mediolanum SpA		9,238		40,069
Parmalat SpA		51,752		142,400
Pirelli & Company SpA		91,832		62,013
Prysmian SpA		4,304		105,348
Saipem SpA		8,265		327,043
Snam Rete Gas SpA		24,903		155,570
Telecom Italia SpA - RSP		208,497		264,266
Telecom Italia SpA		315,811		507,938
Terna SpA		39,751		159,719
UniCredito Italiano SpA		351,325		1,890,358
Unipol Gruppo Finanziario SpA, ADR		24,906		62,095
				13,272,518
Japan - 14.79%
Acom Company, Ltd.		1,430		39,828
Advantest Corp.		5,200		108,636
AEON Company, Ltd.		18,300		209,873
AEON Credit Service Company, Ltd.		1,600		18,198
Aeon Mall Company, Ltd.		1,700		48,724
Aiful Corp.		1,700		13,740
Aioi Insurance Company, Ltd.		12,000		59,077
Aisin Seiki Company		5,800		152,692
Ajinomoto Company, Inc.		20,000		182,230
Alfresa Holdings Corp.		800		52,025
All Nippon Airways Company, Ltd.		16,000		59,186
Alps Electric Company, Ltd.		4,700		42,479
Amada Company, Ltd.		10,000		60,570
Aozora Bank, Ltd.		13,000		25,335
Asahi Breweries, Ltd.		11,600		214,864
Asahi Glass Company, Ltd.		31,000		329,097
Asahi Kasei Corp.		37,000		173,770
ASICS Corp.		4,000		35,241

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Astellas Pharmaceuticals, Inc.		15,500	$	698,147
Bank of Kyoto, Ltd.		10,000		104,295
Benesse Corp.		2,600		113,992
Bridgestone Corp.		19,000		319,641
Brother Industries, Ltd.		7,400		82,832
Canon Sales Company, Inc.		1,800		29,541
Canon, Inc.		32,600		1,461,906
Casio Computer Company, Ltd.		6,000		66,773
Central Japan Railway Company, Ltd.		50		519,393
Chiba Bank, Ltd.		23,000		126,037
Chubu Electric Power Company, Inc.		20,200		481,349
Chugai Pharmaceutical Company, Ltd.		6,000		99,107
Chugoku Bank, Ltd. *		4,000		52,300
Chugoku Electric Power Company, Inc.		9,100		204,773
Citizen Watch Company, Ltd.		8,600		59,389
Coca-Cola West Japan Company, Ltd.		1,100		25,440
Cosmo Oil Company, Ltd.		19,000		55,494
Credit Saison Company, Ltd.		4,800		96,701
CSK Corp.		1,600		25,243
Dai Nippon Printing Company, Ltd.	��	17,000		240,014
Daicel Chemical Industries, Ltd.		7,000		35,497
Daido Steel Company, Ltd.		7,000		38,828
Daihatsu Motor Company, Ltd.		7,000		86,170
Daiichi Sankyo Company, Ltd.		22,000		661,868
Daikin Industries, Ltd.		8,400		283,151
Dainippon Ink & Chemicals, Inc.		16,000		35,459
Dainippon Sumitomo Pharma Company, Ltd.		4,000		35,447
Daito Trust Construction Company, Ltd.		2,800		116,076
Daiwa House Industry Company, Ltd.		15,000		147,400
Daiwa Securities Group, Inc.		41,000		316,538
Dena Company, Ltd.		8		39,031
Denki Kagaku Kogyo Kabushiki Kaisha		12,000		33,835
Denso Corp.		15,200		394,037
Dentsu, Inc.		62		124,676
Dowa Mining Company, Ltd.		7,000		38,997
East Japan Railway Company		104		827,223
Eisai Company, Ltd.		8,200		326,105
Electric Power Development Company, Ltd.		3,700		136,029
Elpida Memory, Inc. *		3,500		75,364
Familymart Company, Ltd.		2,100		85,056
Fanuc, Ltd.		5,900		438,950
Fast Retailing Company, Ltd.		1,300		131,217
Fuji Electric Holdings Company, Ltd.		15,000		35,325
Fuji Heavy Industries, Ltd.		20,000		114,332
Fuji Photo Film Company, Ltd.		15,100		415,491
Fuji Television Network, Inc.		11		15,789
Fujitsu, Ltd.		56,000		387,064
Fukuoka Financial Group, Inc.		27,000		94,974
Furukawa Electric Company, Ltd.		23,000		118,601
Gunma Bank		15,000		84,435
Hakuhodo DY Holdings, Inc.		650		33,129
Hankyu Hanshin Holdings, Inc.		37,200		163,847
Haseko Corp.		45,000		45,674
Hikari Tsushin, Inc.		500		12,728
Hino Motors, Ltd.		6,000		29,223
Hirose Electric Company, Ltd.		800		77,594

 

The accompanying notes are an integral part of the financial statements.

165

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Hisamitsu Pharmaceutical Company, Inc.		1,800	$	79,950
Hitachi Chemical, Ltd.		3,800		69,128
Hitachi Construction Machinery Company, Ltd.		3,400		79,482
Hitachi High-Technologies Corp.		1,400		25,818
Hitachi Metals, Ltd.		6,000		89,092
Hitachi, Ltd.		103,000		758,589
Hokkaido Electric Power Company, Inc.		6,200		138,541
Hokuhoku Financial Group, Inc.		30,000		71,721
Hokuriku Electric Power Company		5,300		132,113
Honda Motor Company, Ltd.		51,000		1,656,360
Hoya Corp.		13,000		265,006
Ibiden Company, Ltd.		4,000		117,972
Idemitsu Kosan Company, Ltd.		500		44,404
Inpex Holdings, Inc.		24		261,340
Isetan Mitsukoshi Holdings, Ltd. *		10,940		121,936
Ishikawajima-Harima Heavy Industries
Company, Ltd.		31,000		53,065
Isuzu Motors, Ltd.		43,000		161,079
ITO EN, Ltd.		1,200		18,364
Itochu Corp.		44,000		353,970
Itochu Techno-Science Corp.		800		21,953
Iyo Bank, Ltd. *		6,000		63,670
J Front Retailing Company, Ltd.		11,000		59,469
JAFCO Company, Ltd.		900		30,879
Japan Airlines System Corp. *		24,000		50,942
Japan Petroleum Exploration Company, Ltd.		800		53,111
Japan Prime Realty Investment Corp., REIT		13		28,152
Japan Real Estate Investment Corp., REIT		13		121,248
Japan Retail Fund Investment Corp., REIT		8		33,113
Japan Tobacco, Inc.		140		664,427
JFE Holdings, Inc.		16,300		688,837
JGC Corp.		7,000		134,045
Joyo Bank, Ltd.		23,000		105,894
JS Group Corp.		7,900		107,245
JSR Corp.		5,900		101,643
Jupiter Telecommunications Company, Ltd. *		100		75,905
Kajima Corp.		21,000		64,645
Kamigumi Company, Ltd.		7,000		54,028
Kaneka Corp.		8,000		50,244
Kansai Electric Power Company, Ltd.		23,400		574,207
Kansai Paint Company, Ltd.		6,000		37,853
Kao Corp.		16,000		453,008
Kawasaki Heavy Industries, Ltd.		52,000		114,653
Kawasaki Kisen Kaisha, Ltd.		18,000		127,615
KDDI Corp.		90		524,088
Keihin Electric Express Railway Company, Ltd. (a)		16,000		102,366
Keio Electric Railway Company, Ltd.		19,000		105,662
Keisei Electric Railway Company, Ltd.		7,000		38,697
Keyence Corp.		1,100		222,509
Kikkoman Corp.		6,000		74,241
Kinden Corp.		4,000		38,211
Kintetsu Corp.		51,000		158,483
Kirin Brewery Company, Ltd.		23,000		344,123
Kobe Steel Company, Ltd.		80,000		191,323
Komatsu, Ltd.		27,900		583,933
Konami Corp.		3,200		97,718

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Konica Minolta Holdings, Inc.		14,000	$	192,959
Koyo Seiko Company, Ltd.		4,900		62,468
Kubota Corp.		31,000		216,447
Kuraray Company, Ltd.		9,000		93,786
Kurita Water Industries, Ltd.		4,000		130,163
Kyocera Corp.		4,800		402,289
Kyowa Hakko Kogyo Company, Ltd.		7,737		84,610
Kyushu Electric Power Company, Inc.		12,100		266,438
Lawson, Inc.		2,300		105,419
LeoPalace21 Corp.		3,300		33,592
Mabuchi Motor Company, Ltd.		1,300		60,700
Makita Corp.		3,600		93,058
Marubeni Corp.		51,000		315,556
Marui Company, Ltd.		7,100		51,885
Maruichi Steel Tube, Ltd. *		1,500		44,712
Matsushita Electric Industrial Company, Ltd.		56,000		1,151,015
Matsushita Electric Works, Ltd.		13,000		120,161
Mazda Motor Corp.		28,000		149,039
Mediceo Holdings Company, Ltd.		3,800		57,120
Meiji Dairies Corp.		7,000		39,973
Millea Holdings, Inc.		21,700		736,003
Minebea Company, Ltd.		10,000		43,851
Mitsubishi Chemical Holdings Corp., ADR		36,500		206,497
Mitsubishi Corp.		41,100		1,128,979
Mitsubishi Electric Corp.		59,000		500,373
Mitsubishi Estate Company, Ltd.		37,000		817,289
Mitsubishi Gas & Chemicals Company, Inc.		9,000		50,975
Mitsubishi Heavy Industries, Ltd.		95,000		453,716
Mitsubishi Logistics Corp.		3,000		34,023
Mitsubishi Materials Corp.		35,000		124,197
Mitsubishi Motors Corp. * (a)		119,000		177,756
Mitsubishi Rayon Company, Ltd.		12,000		32,384
Mitsubishi UFJ Financial Group, Inc.		315,710		2,399,730
Mitsubishi UFJ Lease & Finance
Company, Ltd.		1,990		69,674
Mitsui & Company, Ltd.		52,000		886,566
Mitsui Chemicals, Inc.		22,000		108,585
Mitsui Engineering & Shipbuilding
Company, Ltd.		18,000		36,162
Mitsui Fudosan Company, Ltd.		26,000		541,820
Mitsui Mining & Smelting Company, Ltd.		12,000		31,974
Mitsui O.S.K. Lines, Ltd.		35,000		414,823
Mitsui Sumitomo Insurance Group Holdings,
Inc. *		11,000		360,790
Mitsui Trust Holdings, Inc.		30,000		165,395
Mitsumi Electric Company, Ltd.		1,800		48,001
Mizuho Financial Group, Inc.		293		1,247,274
Mizuho Trust & Banking Company, Ltd.		48,000		69,121
Murata Manufacturing Company, Ltd.		6,800		298,804
Namco Bandai Holdings, Inc.		5,300		65,184
NEC Corp.		59,000		271,898
NEC Electronics Corp. *		700		17,727
NGK INSULATORS, Ltd.		7,000		84,011
NGK Spark Plug Company, Ltd.		4,000		44,203
NHK Spring Company, Ltd.		3,000		20,171
Nidec Corp.		3,300		221,819
Nikon Corp.		10,000		324,561

 

The accompanying notes are an integral part of the financial statements.

166

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Nintendo Company, Ltd.		3,000	$	1,408,379
Nippon Building Fund, Inc., REIT		15		162,308
Nippon Electric Glass Company, Ltd.		10,000		133,390
Nippon Express Company, Ltd.		26,000		121,569
Nippon Meat Packers, Inc.		6,000		97,412
Nippon Mining Holdings, Inc.		28,500		158,306
Nippon Oil Corp.		38,000		237,002
Nippon Paper Group, Inc.		31		88,532
Nippon Sheet Glass Company, Ltd.		16,000		81,936
Nippon Steel Corp.		158,000		749,493
Nippon Telegraph & Telephone Corp.		159		781,666
Nippon Yusen Kabushiki Kaisha		33,000		263,348
NIPPONKOA Insurance Company, Ltd.		18,000		118,097
Nishi-Nippon City Bank, Ltd.		18,000		47,023
Nissan Chemical Industries, Ltd.		4,000		43,823
Nissan Motor Company, Ltd.		68,700		521,851
Nisshin Seifun Group, Inc.		5,000		68,988
Nisshin Steel Company		21,000		56,106
Nisshinbo Industries, Inc.		3,000		33,030
Nissin Food Products Company, Ltd.		2,300		75,957
Nitori Company, Ltd.		1,350		74,971
Nitto Denko Corp.		5,400		162,094
NOK Corp.		2,700		38,693
Nomura Holdings, Inc.		54,000		716,124
Nomura Real Estate Holdings, Inc.		1,000		20,493
Nomura Real Estate Office Fund, Inc.		6		43,071
Nomura Research Institute, Ltd.		4,100		93,035
NSK, Ltd.		11,000		78,689
NTN Corp.		14,000		77,827
NTT Data Corp.		38		155,974
NTT DoCoMo, Inc.		490		772,249
NTT Urban Development Corp.		31		41,368
Obayashi Corp.		16,000		74,008
OBIC Company, Ltd.		150		26,497
Odakyu Electric Railway Company, Ltd.		19,000		131,034
Oji Paper Company, Ltd.		27,000		141,052
Okuma Holdings, Inc.		3,000		21,564
Olympus Optical Company, Ltd.		7,000		227,428
Omron Corp.		7,300		128,317
Ono Pharmaceutical Company, Ltd.		3,300		172,798
Onward Kashiyama Company, Ltd.		3,000		32,580
Oracle Corp. - Japan		1,000		43,575
Oriental Land Company, Ltd.		1,800		118,357
Orix Corp.		2,840		345,975
Osaka Gas Company, Ltd.		65,000		236,492
Otsuka Corp.		400		28,692
Pioneer Electronic Corp.		3,000		22,772
Promise Company, Ltd.		1,700		38,100
Rakuten, Inc.		173		96,359
Resona Holdings, Inc.		165		192,046
Ricoh Company, Ltd.		20,000		330,132
Rohm Company, Ltd.		3,100		178,476
SANKYO Company, Ltd.		1,300		61,553
Santen Pharmaceutical Company, Ltd.		1,800		48,716
Sanyo Electric Company, Ltd. *		51,000		101,691
Sapporo Hokuyo Holdings, Inc.		7		37,676

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Sapporo Holdings		6,000	$	43,743
SBI Holdings, Inc.		669		119,933
Secom Company, Ltd.		6,100		281,003
SEGA SAMMY HOLDINGS, Inc.		5,100		48,373
Seiko Epson Corp.		4,200		121,168
Sekisui Chemical Company, Ltd.		11,000		68,129
Sekisui House, Ltd.		16,000		151,215
Seven & I Holdings Company, Ltd.		25,100		731,101
Sharp Corp.		31,000		394,415
Shikoku Electric Power Company, Inc.		6,200		165,616
Shimadzu Corp.		7,000		65,605
Shimamura Company, Ltd.		600		33,602
Shimano, Inc. *		2,200		88,944
Shimizu Corp.		14,000		59,060
Shin-Etsu Chemical Company, Ltd.		12,500		695,377
Shinko Electric Industries Company, Ltd.		1,600		22,271
Shinko Securities Company, Ltd.		14,000		40,680
Shinsei Bank, Ltd.		31,000		105,411
Shionogi & Company, Ltd.		9,000		202,895
Shiseido Company, Ltd.		10,000		234,137
Shizuoka Bank, Ltd.		18,000		180,349
Showa Denko K.K.		34,000		90,392
Showa Shell Sekiyu K.K.		4,400		49,742
SMC Corp.		1,700		174,782
SOFTBANK Corp.		23,500		387,914
Sojitz Holdings Corp.		34,400		98,152
Sompo Japan Insurance, Inc.		24,000		216,396
Sony Corp.		30,400		1,162,127
Sony Financial Holdings, Inc.		23		85,378
Square Enix Company, Ltd.		1,800		59,336
Stanley Electric Corp.		5,300		106,771
Sumco Corp.		4,100		81,223
Sumitomo Chemical Company, Ltd.		49,000		300,669
Sumitomo Corp.		34,600		431,074
Sumitomo Electric Industries, Ltd.		23,700		271,971
Sumitomo Heavy Industries, Ltd.		21,000		102,113
Sumitomo Metal Industries, Ltd.		117,000		516,854
Sumitomo Metal Mining Company, Ltd.		18,000		229,329
Sumitomo Mitsui Financial Group, Inc.		203		1,229,007
Sumitomo Realty &
Development Company, Ltd.		11,000		218,969
Sumitomo Rubber Industries, Inc.		4,000		31,911
Sumitomo Titanium Corp.		400		15,330
Sumitomo Trust & Banking Company, Ltd.		46,000		274,585
Suruga Bank, Ltd.		8,000		85,719
Suzuken Company, Ltd.		2,600		93,400
Suzuki Motor Corp.		11,300		238,153
T&D Holdings, Inc.		6,300		330,568
TAIHEIYO CEMENT CORP.		21,000		34,439
Taisei Corp.		22,000		50,080
Taisho Pharmaceuticals Company, Ltd.		4,000		84,846
Taiyo Nippon Sanso Corp.		10,000		89,218
Takashimaya Company, Ltd.		8,000		68,389
Takeda Pharmaceutical Company, Ltd.		25,800		1,347,799
Takefuji Corp. (a)		2,950		39,073
Tanabe Seiyaku Company, Ltd.		8,000		112,084

 

The accompanying notes are an integral part of the financial statements.

167

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
TDK Corp.		3,600	$	208,546
Teijin, Ltd.		30,000		96,127
Terumo Corp.		5,300		294,851
The 77th Bank, Ltd.		8,000		45,656
The Bank of Yokohama, Ltd.		38,000		203,544
The Hachijuni Bank, Ltd.		16,000		92,788
The Hiroshima Bank, Ltd.		13,000		48,678
The Japan Steel Works, Ltd.		11,000		189,441
The Tokyo Electric Power Company, Ltd.		36,900		1,052,775
THK Company, Ltd.		3,400		55,243
Tobu Railway Company, Ltd.		27,000		122,611
Toho Company, Ltd.		3,000		63,415
Toho Gas Company, Ltd. *		13,000		73,154
Toho Titanium Company, Ltd. (a)		600		8,877
Tohoku Electric Power Company, Inc.		12,900		307,366
Tokai Rika Company, Ltd.		1,400		20,299
Tokuyama Corp.		5,000		33,818
Tokyo Broadcasting Company, Ltd.		1,000		16,382
Tokyo Electron, Ltd.		5,400		305,519
Tokyo Gas Company, Ltd.		68,000		283,714
Tokyo Steel Manufacturing Company, Ltd.		2,200		23,228
Tokyo Tatemono Company, Ltd.		7,000		33,610
Tokyu Corp.		38,000		194,962
Tokyu Land Corp.		18,000		75,937
TonenGeneral Sekiyu K.K.		7,000		56,323
Toppan Printing Company, Ltd.		18,000		162,237
Toray Industries, Inc.		39,000		171,687
Toshiba Corp.		91,000		507,583
Tosoh Corp.		12,000		43,588
Toto, Ltd.		7,000		51,904
Toyo Seikan Kaisha, Ltd.		5,800		105,117
Toyo Suisan Kaisha, Ltd.		3,000		74,814
Toyoda Gosei Company, Ltd.		1,400		31,199
Toyota Boshoku Corp.		1,800		29,099
Toyota Industries Corp.		5,600		161,307
Toyota Motor Corp.		83,000		3,703,326
Toyota Tsusho Corp.		7,300		124,823
Trend Micro, Inc.		3,500		118,452
Ube Industries, Ltd.		33,000		117,974
UNI Charm Corp.		1,400		104,153
UNY Company, Ltd.		4,000		44,096
Ushio, Inc.		2,700		40,892
USS Company, Ltd.		500		34,395
West Japan Railway Company, Ltd.		56		270,609
Yahoo Japan Corp.		430		164,798
Yakult Honsha Company, Ltd.		2,800		79,680
Yamada Denki Company, Ltd.		2,660		191,098
Yamaguchi Financial Group, Inc. *		6,000		68,878
Yamaha Corp.		5,700		100,072
Yamaha Motor Company, Ltd.		7,100		109,377
Yamato Kogyo Company, Ltd.		1,500		54,668
Yamato Transport Company, Ltd.		11,000		129,742
Yamazaki Baking Company, Ltd.		3,000		35,393
YASKAWA Electric Corp.		8,000		55,881
Yokogawa Electric Corp.		5,000		36,331
				72,974,439

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Luxembourg - 0.56%
ArcelorMittal		26,155	$	2,051,909
Millicom International Cellular SA, ADR *		1,868		147,717
SES, ADR		8,039		194,013
Tenaris SA, ADR		6,960		380,642
				2,774,281
Malaysia - 0.43%
AirAsia BHD *		17,100		5,417
AMMB Holdings BHD		66,500		59,651
Asiatic Development BHD		12,400		20,378
Berjaya Sports Toto BHD		16,300		21,849
British American Tobacco Malaysia BHD		5,100		59,219
Bursa Malaysia BHD		7,600		15,358
Commerce Asset Holdings		81,000		198,215
Digi.Com BHD		10,400		70,386
Gamuda BHD		49,500		37,473
Genting BHD		70,500		120,869
Hong Leong Bank BHD		11,600		19,596
Hong Leong Credit BHD		4,400		6,283
IGB Corp. BHD		13,900		5,498
IJM Corp. BHD *		30,900		45,740
IOI Corp. BHD		99,200		148,490
KLCC Property Holdings BHD		8,900		7,086
KNM Group BHD		100,800		44,056
Kuala Lumpur Kepong BHD		13,400		46,830
Lafarge Malayan Cement BHD		7,380		9,968
Malayan Bank BHD		79,350		182,846
Malaysian Airline System BHD		7,200		7,139
Malaysian Plantations BHD		32,900		26,191
MISC BHD		32,800		82,974
MMC Corp. BHD		44,200		27,215
Parkson Holdings BHD *		18,700		25,609
Petronas Dagangan BHD		5,200		10,242
Petronas Gas BHD		16,800		49,369
PLUS Expressways BHD		33,700		28,266
PPB Group BHD		19,400		53,549
Public Bank BHD		30,000		89,898
Resorts World BHD		85,200		67,678
RHB Capital BHD		6,900		8,461
Sime Darby BHD		79,238		158,146
SP Setia BHD		18,450		18,306
Tanjong PLC		5,000		19,392
Telekom Malaysia, BHD		30,000		31,518
Tenaga Nasional BHD		37,700		87,363
TM International Bhd *		30,000		55,253
UEM World BHD *		16,200		11,867
UMW Holdings BHD		24,700		44,628
YTL Corp. BHD		27,300		51,290
YTL Power International BHD		42,540		23,540
				2,103,102
Mexico - 0.96%
Alfa SA de CV		7,800		40,658
America Movil SA de CV, Series L, ADR		10,617		545,501
America Movil SA de CV		338,900		871,742
Axtel SAB de CV, ADR *		21,400		26,223
Banco Compartamos SA de CV, ADR		5,400		17,593

 

The accompanying notes are an integral part of the financial statements.

168

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Mexico (continued)
Carso Global Telecom SAB de CV *		24,100	$	122,812
Cemex SA de CV, SADR *		8,480		170,024
Cemex SA de CV *		191,953		384,737
Coca-Cola Femsa SA de CV		10,100		57,559
Controladora Comercial Mexicana SA de CV		15,200		37,945
Corp. GEO SA de CV, Series B *		10,400		30,443
Desarrolladora Homex SA de CV *		5,500		46,620
Empresas ICA Sociedad
Controladora SA de CV *		13,100		58,858
Fomento Economico Mexicano SA de CV		68,700		304,658
Grupo Aeroportuario del Pacifico SA de CV,
B Shares		12,000		34,193
Grupo Bimbo SA de CV		7,500		50,108
Grupo Carso SA de CV		20,301		79,563
Grupo Elektra SA de CV		2,500		92,874
Grupo Financiero Banorte SA de CV		36,242		145,211
Grupo Financiero Inbursa SA de CV		27,900		97,515
Grupo Mexico SA		103,918		173,117
Grupo Modelo SA		16,500		79,060
Grupo Televisa SA, SADR		6,344		147,054
Grupo Televisa SA		65,800		304,596
Industrias Penoles SA de CV		3,400		56,178
Kimberly-Clark de Mexico SA de CV		11,800		51,582
Telefonos de Mexico SA de CV		209,900		257,406
Telmex Internacional SAB de CV *		174,000		123,527
Urbi Desarrollos Urbanos SA de CV *		15,400		43,162
Wal-Mart de Mexico SA de CV, Series V		82,588		301,189
				4,751,708
Netherlands - 1.92%
Aegon NV		42,948		505,928
Akzo Nobel NV		8,561		522,416
ASML Holding NV		13,873		327,162
Corio NV		1,494		109,881
DSM NV		4,513		259,738
Fugro NV		1,992		153,625
Heineken Holding NV		3,766		167,040
Heineken NV		7,834		367,280
ING Groep NV		58,143		1,811,376
Koninklijke (Royal) KPN NV		56,673		961,577
Koninklijke (Royal) Philips Electronics NV		33,518		1,089,004
Koninklijke Ahold NV		36,892		461,253
Randstad Holdings NV		3,658		112,166
Reed Elsevier NV		19,609		327,864
SBM Offshore NV		4,955		119,881
SNS Reaal		4,535		75,359
TNT Post Group NV		11,803		440,269
TomTom NV *		2,554		63,083
Unilever NV		50,113		1,382,759
Wolters Kluwer NV		9,472		230,532
				9,488,193
New Zealand - 0.06%
Auckland International Airport, Ltd.		27,486		40,704
Contact Energy, Ltd.		8,111		47,354
Fletcher Building, Ltd.		14,451		75,269
Sky City Entertainment Group, Ltd.		12,760		32,101

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
New Zealand (continued)
Telecom Corp. of New Zealand, Ltd.		53,237	$	121,851
				317,279
Norway - 0.71%
Acergy SA		5,894		101,410
Aker Kvaerner ASA		5,371		122,883
Den Norske Bank ASA		23,000		266,652
Lighthouse Caledonia ASA *		530		525
Norsk Hydro ASA		22,384		238,537
Orkla ASA		24,454		313,707
Petroleum Geo-Services ASA *		5,533		118,844
ProSafe ASA *		5,550		49,973
Prosafe Production Public, Ltd. *		5,550		25,587
Renewable Energy Corp. ASA *		5,179		159,227
Statoil ASA		39,640		1,215,973
Storebrand ASA		12,581		97,788
Telenor ASA		26,800		421,212
Yara International ASA		6,000		371,504
				3,503,822
Peru - 0.08%
Cia de Minas Buenaventura SA		5,080		116,144
Compania de Minas Buenaventura SA, ADR		2,732		63,382
Credicorp SA		800		56,520
Credicorp, Ltd., ADR		967		68,009
Minsur SA		9,795		22,700
Southern Peru Copper Corp.		2,667		68,675
Volcan Compania Minera SA, CMN Series B		13,064		15,492
				410,922
Philippines - 0.06%
Ayala Corp.		3,853		24,973
Ayala Land, Inc.		118,600		26,223
Banco De Oro		7,314		6,557
Bank of the Philippine Islands		29,568		29,676
Globe Telecommunications, Inc.		690		16,449
International Container Terminal Services, Inc.		20,878		12,861
Jollibee Foods Corp.		9,000		8,487
Manila Electric Company		9,142		11,066
Megaworld Corp.		213,952		6,707
Metropolitan Bank & Trust Company		12,800		10,477
Philippine Long Distance Telephone Company		1,290		75,815
PNOC Energy Development Corp.		132,801		13,072
SM Investments Corp.		3,594		21,967
SM Prime Holdings, Ltd.		84,941		14,879
				279,209
Poland - 0.33%
Agora SA		1,018		13,023
Bank BPH SA *		200		6,386
Bank Millennium SA		6,911		21,003
Bank Pekao SA		3,519		279,589
Bank Zachodni WBK SA		915		70,425
Bioton SA *		27,293		5,016
Boryszew SA *		550		740
BRE Bank SA *		340		52,870
Cersanit-Krasnystaw SA *		1,690		11,884
Computerland SA *		160		1,591

 

The accompanying notes are an integral part of the financial statements.

169

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Poland (continued)
Echo Investment SA *		5,790	$	11,386
Getin Holding SA *		12,724		54,206
Globe Trade Centre SA *		4,447		48,684
Grupa Lotos SA *		2,585		30,835
KGHM Polska Miedz SA		3,699		124,537
Orbis SA		661		15,671
PBG SA *		223		23,239
Polimex Mostostal SA		10,270		23,318
Polish Oil & Gas Company		41,373		62,046
Polski Koncern Naftowy Orlen SA		10,957		158,319
Powszechna Kasa Oszczednosci Bank
Polski SA		14,682		315,611
Softbank SA		1,956		53,214
Telekomunikacja Polska SA		22,584		226,588
TVN SA		3,638		28,555
				1,638,736
Portugal - 0.19%
Banco BPI SA		8,307		27,915
Banco Comercial dos Acores SA		74,819		129,264
Banco Espirito Santo SA		7,412		95,772
Brisa Auto Estrada, SA		9,899		92,034
Cimpor-Cimentos De Portugal SA		9,705		60,955
Electricidade de Portugal SA		51,362		260,864
Portugal Telecom, SGPS, SA		20,182		210,857
PT Multimedia.com, SGPS, SA		5,671		44,556
Sonae, SGPS, SA		18,991		19,322
				941,539
Russia - 1.59%
AFK Sistema, Reg. S, Spons. GDR		3,265		81,300
Comstar United Telesystems, GDR *		6,510		44,919
Federal Grid Company Unified Energy
System JSC *		1,540		295,915
JSC MMC Norilsk Nickel, ADR		24,250		479,180
Lukoil Oil Company, ADR		14,376		1,068,137
Magnitogorsk Iron & Steel Works, GDR		12,256		152,587
Mechel Steel Group, ADR		5,179		141,594
Mobile Telesystems, SADR		6,330		430,440
NovaTek OAO, ADR		2,566		184,298
Novolipetsk Steel, ADR		6,267		241,091
OAO Gazprom, SADR		61,983		2,417,337
OAO Gazprom, SADR		11,201		435,840
Polyus Gold Company ZAO, SADR		3,630		54,450
Rosneft Oil Company, GDR *		19,280		164,458
Rostelecom, ADR (a)		1,442		99,137
Sberbank, ADR		2,294		540,237
Severstal, ADR (a)		4,900		82,810
Sibirtelecom, ADR		424		5,173
Surgutneftegaz, ADR		21,625		155,700
Tatneft, ADR		1,933		200,065
UralsvyAzinform, ADR		1,471		9,562
Vimpel-Communications, SADR		14,826		356,269
VolgaTelecom, ADR		1,172		6,798
VTB Bank OJSC, GDR		26,491		146,023
Wimm-Bill-Dann Foods OJSC, ADR *		663		46,092
				7,839,412

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Singapore - 0.85%
Ascendas, REIT *		33,000	$	52,930
Capitacommercial *		38,000		45,116
Capitaland, Ltd.		51,000		155,774
CapitaMall Trust *		36,000		69,178
City Developments, Ltd.		17,000		123,309
ComfortDelGro Corp., Ltd.		63,000		66,622
Cosco Corp. Singapore, Ltd.		31,000		49,549
DBS Group Holdings, Ltd.		36,000		455,202
Fraser and Neave, Ltd. (a)		32,000		98,131
Genting International PLC *		117,000		41,893
Golden Agri-Resources, Ltd.		181,000		80,429
Jardine Cycle and Carriage, Ltd.		4,254		53,057
Keppel Corp., Ltd. (a)		41,210		286,186
Keppel Land, Ltd.		18,000		48,893
Neptune Orient Lines, Ltd.		17,000		26,791
Olam International, Ltd.		41,500		60,940
Oversea-Chinese Banking Corp., Ltd.		80,000		453,344
Parkway Holdings, Ltd.		33,951		53,196
SembCorp Industries, Ltd.		30,000		87,082
SembCorp Marine, Ltd.		28,600		75,802
Singapore Airlines, Ltd.		17,140		183,299
Singapore Exchange, Ltd.		28,000		123,643
Singapore Press Holdings, Ltd.		51,000		147,526
Singapore Technologies Engineering, Ltd.		39,000		77,040
Singapore Telecommunications, Ltd.		250,950		619,362
United Overseas Bank, Ltd.		38,000		505,790
United Overseas Land, Ltd.		18,000		36,392
Venture Corp., Ltd.		6,000		42,141
Wilmar International, Ltd.		27,000		71,507
Yanlord Land Group, Ltd. (a)		11,000		12,282
				4,202,406
South Africa - 1.21%
ABSA Group, Ltd.		8,122		114,664
Adcock Ingram Holdings, Ltd. *		3,884		18,922
African Bank Investments, Ltd.		14,629		52,623
African Rainbow Minerals, Ltd.		2,661		89,349
Anglo Platinum, Ltd.		2,270		285,940
AngloGold Ashanti, Ltd.		8,536		229,464
Aspen Pharmacare Holdings, Ltd. *		4,549		27,574
Aveng, Ltd.		8,562		73,564
Barloworld, Ltd.		5,005		44,328
Bidvest Group, Ltd. *		6,269		92,617
Discovery Holdings, Ltd., ADR		1		3
FirstRand, Ltd.		93,105		198,267
Foschini, Ltd.		4,844		26,691
Gold Fields, Ltd.		17,655		161,550
Harmony Gold Mining Company, Ltd. *		8,392		73,184
Hulamin, Ltd.		83		215
Impala Platinum Holdings, Ltd.		16,652		469,845
Imperial Holdings, Ltd. *		4,211		29,476
Investec, Ltd.		4,018		29,935
Kumba Iron Ore, Ltd.		1,848		60,300
Kumba Resources, Ltd.		2,815		41,965
Liberty Group, Ltd. *		2,755		25,136
Massmart Holdings, Ltd.		4,714		50,801
Mittal Steel South Africa, Ltd.		4,928		116,087

 

The accompanying notes are an integral part of the financial statements.

170

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Africa (continued)
MTN Group, Ltd.		46,617	$	716,714
Murray & Roberts Holdings, Ltd.		7,152		96,526
Naspers, Ltd.		12,330		309,652
Nedbank Group, Ltd.		4,908		66,298
Network Healthcare Holdings, Ltd. *		29,089		32,431
Pick’n Pay Stores, Ltd.		4,684		17,944
Pretoria Portland Cement Company, Ltd.		13,256		58,440
Remgro, Ltd.		14,468		350,918
Reunert, Ltd.		4,168		31,415
RMB Holdings, Ltd.		26,168		88,793
Sanlam, Ltd.		53,995		124,560
Sappi, Ltd.		5,068		53,359
Sasol, Ltd.		17,563		966,761
Shoprite Holdings, Ltd.		10,263		61,180
Standard Bank Group, Ltd.		32,223		375,941
Steinhoff International Holdings, Ltd. *		23,609		56,452
Telkom SA, Ltd.		7,148		129,226
Tiger Brands, Ltd.		3,884		68,314
Truworths International, Ltd.		10,796		43,748
Woolworths Holdings, Ltd.		18,895		30,806
				5,991,978
South Korea - 2.25%
Amorepacific Corp.		90		53,411
Asiana Airlines		676		2,728
Cheil Industries, Inc.		1,810		85,759
CJ CheilJedang Corp. *		238		51,716
Daegu Bank		4,210		46,672
Daelim Industrial Company		820		50,541
Daewoo Engineering & Construction
Company, Ltd.		4,569		48,524
Daewoo International Corp.		1,220		36,379
Daewoo Securities Company, Ltd.		3,770		56,492
Daewoo Shipbuilding & Marine Engineering
Company, Ltd.		2,760		87,314
DC Chemical Company, Ltd.		390		105,379
Dongbu Insurance Company, Ltd.		1,320		36,956
Dongkuk Steel Mill Company, Ltd.		1,380		49,175
Doosan Corp. *		310		34,776
Doosan Heavy Industries and Construction
Company, Ltd.		1,150		81,763
Doosan Infracore Company, Ltd.		2,880		55,636
GS Engineering & Construction Corp.		1,000		76,787
GS Holdings Corp.		1,810		45,597
Hana Financial Group, Inc.		4,350		154,101
Hanjin Heavy Industries & Construction
Company, Ltd.		781		21,419
Hanjin Shipping Company, Ltd.		1,400		35,568
Hankook Tire Company, Ltd.		2,360		34,469
Hanwha Chem Corp.		1,584		14,932
Hanwha Corp.		1,150		39,010
Hite Holdings Company, Ltd.		183		5,767
Hite Holdings Company, Ltd. *		145		27,831
Honam Petrochemical Corp.		370		21,879
Hynix Semiconductor, Inc. *		10,290		181,099
Hyosung Corp.		840		56,421
Hyundai Department Store Company, Ltd.		350		28,583

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Hyundai Development Company		1,810	$	68,362
Hyundai Engineering & Construction
Company, Ltd.		1,340		68,676
Hyundai Heavy Industries		1,230		267,329
Hyundai Mipo Dockyard		360		51,498
Hyundai Mobis		1,630		135,351
Hyundai Motor Company, Ltd.		4,780		312,301
Hyundai Securities Company, Ltd.		4,428		44,786
Hyundai Steel Company		1,730		80,068
Industrial Bank of Korea		6,000		85,219
Kangwon Land, Inc.		2,740		48,100
KCC Corp.		200		65,604
Kia Motors Corp. *		6,270		74,772
Kookmin Bank, SADR		4,474		245,175
Kookmin Bank		5,817		318,238
Korea Electric Power Corp.		8,093		244,861
Korea Exchange Bank		8,520		106,704
Korea Gas Corp.		780		56,156
Korea Investment Holdings Company, Ltd.		1,010		33,057
Korea Line Corp.		240		38,441
Korea Zinc Company, Ltd.		290		33,523
Korean Air Lines Company, Ltd.		937		32,961
Korean Reinsurance Company, Ltd.		12		110
KT Corp.		4,480		183,702
KT Freetel Company, Ltd. *		2,180		57,197
KT&G Corp.		3,440		289,133
Kumho Industrial Company, Ltd.		960		12,899
LG Chem, Ltd.		1,653		143,098
LG Corp.		3,110		177,509
LG Dacom Corp.		830		15,541
LG Electronics, Inc.		2,930		269,931
LG Household & Health Care, Ltd.		350		60,512
LG Philips LCD Company, Ltd., ADR		2,120		26,118
LG Philips LCD Company, Ltd.		4,256		104,874
LG Telecom, Ltd.		5,209		45,518
Lotte Confectionery Company, Ltd.		20		24,061
Lotte Shopping Company, Ltd.		370		100,681
LS Cable, Ltd.		500		36,233
Mirae Asset Securities Company, Ltd.		595		48,407
NHN Corp. *		1,290		175,603
POSCO, SADR		4,007		429,150
POSCO		1,620		696,823
Pusan Bank		4,290		47,709
Samsung Card Company, Ltd.		1,190		43,370
Samsung Corp.		4,317		187,413
Samsung Electro-Mechanics Company, Ltd.		1,930		57,242
Samsung Electronics Company, Ltd., GDR (h)		170		39,950
Samsung Electronics Company, Ltd.		3,283		1,539,962
Samsung Engineering Company, Ltd.		1,170		74,365
Samsung Fire & Marine
Insurance Company, Ltd.		1,200		217,932
Samsung Heavy Industries Company, Ltd.		4,971		141,383
Samsung SDI Company, Ltd. *		900		68,369
Samsung Securities Company, Ltd.		1,540		83,445
Samsung Techwin Company, Ltd.		2,090		59,627
Shinhan Financial Group Company, Ltd.		10,070		456,872
Shinsegae Company, Ltd.		460		228,417

 

The accompanying notes are an integral part of the financial statements.

171

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
SK Corp.		1,003	$	99,903
SK Energy Company, Ltd.		1,796		140,360
SK Networks Company, Ltd. *		2,740		41,946
SK Telecom Company, Ltd.		1,177		216,855
S-Oil Corp.		1,520		90,137
STX Pan Ocean Company, Ltd.		40,570		68,881
STX Shipbuilding Company, Ltd.		1,620		27,249
Taihan Electric Wire Company, Ltd.		900		26,033
Tong Yang Investment Bank		2,121		19,004
Woongjin Coway Company, Ltd.		1,690		51,442
Woori Finance Holdings Company, Ltd.		7,600		100,040
Woori Investment & Securities Company, Ltd.		3,040		52,769
				11,115,641
Spain - 2.76%
Abertis Infraestructuras SA		8,756		180,857
Acciona SA		842		167,435
Acerinox SA		3,695		69,835
ACS Actividades SA		6,157		272,630
Banco Bilbao Vizcaya Argentaria SA		105,465		1,779,598
Banco de Sabadell SA		29,552		230,092
Banco Popular Espanol SA		23,516		248,504
Banco Santander Central Hispano SA		187,520		3,187,724
Bankinter SA, ADR		7,018		74,524
Cintra Concesiones de Infraestructuras de
Transporte SA		4,831		55,932
Corporacion Mapfre SA		22,124		105,805
Criteria Caixacorp SA		28,458		144,376
Enagas		4,949		125,811
Fomento de Construcciones SA		1,046		52,396
Gamesa Corporacion Tecnologica SA		5,309		251,090
Gas Natural SDG SA		3,712		171,970
Gestevision Telecinco SA		2,563		32,972
Grifols SA		3,400		100,924
Grupo Ferrovial SA		2,220		110,924
Iberdrola Renovables *		23,417		149,278
Iberdrola SA		103,957		1,252,613
Iberia Lineas Aereas de Espana SA		11,209		33,231
Indra Sistemas SA		2,819		72,164
Industria de Diseno Textil SA		6,082		282,854
Promotora de Informaciones SA		1,526		13,289
Red Electrica De Espana		3,413		201,367
Repsol YPF SA		21,616		668,593
Sacyr Vallehermoso SA		2,184		39,503
Telefonica SA		128,841		3,183,469
Union Fenosa SA		11,015		279,120
Zardoya Otis SA (a)		3,082		62,281
				13,601,161
Sweden - 1.46%
Alfa Laval AB		18,300		249,738
Assa Abloy AB - Series B		7,600		108,554
Atlas Copco AB, Series A, ADR		20,534		286,627
Atlas Copco AB, Series B, ADR		12,791		163,666
Boliden AB		7,000		44,099
Electrolux AB, Series B		6,123		78,560
Ericsson (LM), Series B		86,000		981,712

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Sweden (continued)
Getinge AB, Series B		6,000	$	136,706
Hennes & Mauritz AB, B shares		15,350		760,680
Holmen AB, Series B		1,300		41,472
Husqvarna AB, B Shares		6,593		53,191
Investor AB, B shares		12,200		256,869
Lundin Petroleum AB, Series A *		5,696		62,133
Modern Times Group AB, Series B		1,310		69,338
Nordea Bank AB		61,000		810,270
Sandvik AB		30,395		376,694
Scania AB, Series B		8,800		125,846
Securitas AB, Series B		7,800		105,398
Skandinaviska Enskilda Banken AB, Series A		14,400		257,498
Skanska AB, Series B		9,000		113,237
SKF AB, B Shares		9,600		145,385
SSAB Svenskt Stal AB, Series A		4,300		104,835
SSAB Svenskt Stal AB, Series B		2,150		46,607
Svenska Cellulosa AB, ADR		18,100		205,621
Svenska Handelsbanken AB, Series A		12,700		305,582
Swedbank AB, A shares		9,600		168,699
Swedish Match AB		6,500		128,173
Tele2 AB, Series B		10,176		156,518
Teliasonera AB		69,500		484,341
Volvo AB, Series A		456		4,978
Volvo AB, Series B		33,000		374,038
				7,207,065
Switzerland - 5.32%
ABB, Ltd. *		67,406		1,653,315
Actelion, Ltd. *		3,241		186,037
Adecco SA		4,000		187,688
Aryzta AG *		2,729		142,008
Baloise Holding AG		1,764		150,916
Compagnie Financiere
Richemont AG, Series A *		16,251		945,562
Credit Suisse Group AG		32,327		1,499,413
EFG International, ADR		2,046		62,043
Geberit AG, ADR		1,342		195,331
Givaudan AG		214		178,077
Holcim, Ltd.		6,698		481,592
Julius Baer Holding AG		6,666		405,662
Kuehne & Nagel International AG		1,897		150,184
Lindt & Spruengli AG, ADR		32		82,014
Logitech International SA *		5,931		158,106
Lonza Group AG		1,598		225,584
Nestle SA		120,346		5,302,395
Nobel Biocare Holding AG, Series BR		4,046		135,701
Novartis AG		71,107		3,961,266
Pargesa Holding SA, ADR		952		98,299
Phonak Holding AG		1,688		122,096
Roche Holdings AG - Genusschein		21,546		3,625,725
Schindler Holding AG		1,820		125,030
Societe Generale de Surveillance Holdings AG		157		201,167
Straumann Holding AG		280		75,036
Sulzer AG		993		122,010
Swatch Group AG, BR shares		1,040		244,431
Swatch Group AG		1,969		88,452
Swiss Life Holding *		1,131		205,757

 

The accompanying notes are an integral part of the financial statements.

172

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Switzerland (continued)
Swiss Re		10,975	$	675,055
Swisscom AG		747		239,364
Syngenta AG		3,231		866,908
Synthes AG		1,911		264,443
UBS AG *		90,179		1,960,140
Unaxis Holding AG *		292		68,294
Zurich Financial Services AG		4,514		1,178,452
				26,263,553
Taiwan - 1.52%
Acer Sertek, Inc.		56,555		112,835
Advanced Semiconductor Engineering, Inc.		94,302		67,994
Advantech Company, Ltd.		5,512		12,397
Asia Cement Corp.		37,778		41,642
Asia Optical Company, Inc.		4,079		7,366
Asustek Computer, Inc.		81,578		187,546
AU Optronics Corp.		175,021		207,797
BenQ Corp.		32,400		16,310
Catcher Technology Company, Ltd.		11,700		39,264
Cathay Financial Holdings Company, Ltd.		141,750		271,022
Cathay Real Estate Development
Company, Ltd.		18,000		7,603
Chang Hwa Commercial Bank, Ltd.		82,000		48,522
Cheng Shin Rubber Industry Company, Ltd.		19,366		25,725
Cheng Uei Precision Industry Company, Ltd.		7,612		15,941
Chi Mei Optoelectronics Corp.		104,454		87,729
China Airlines, Ltd. *		24,716		8,356
China Development Financial Holdings Corp.		224,352		70,710
China Motor Company, Ltd.		11,055		6,452
China Steel Corp.		239,415		293,040
Chinatrust Finance Holding Company, Ltd.		163,000		104,877
Chunghwa Picture Tubes, Ltd.		135,000		28,207
Chunghwa Telecom Company, Ltd. *		115,818		287,118
CMC Magnetics Corp. *		65,000		16,727
Compal Communications, Inc.		4,410		6,027
Compal Electronics, Inc.		72,706		65,221
Delta Electronics, Inc.		35,190		94,254
D-Link Corp.		11,652		14,041
E.Sun Financial Holding Company, Ltd.		63,440		24,436
Epistar Corp.		8,946		16,009
Eternal Chemical Company, Ltd.		12,320		9,454
EVA Airways Corp. *		24,000		8,785
Evergreen Marine Corp.		28,000		15,867
Everlight Electronics Company, Ltd.		2,039		4,821
Far Eastern Department Stores Company, Ltd.		6,300		4,618
Far Eastern Textile, Ltd.		65,045		59,666
Far EasTone Telecommunications Company,
Ltd.		30,463		44,300
Firich Enterprises Company, Ltd. *		1,000		4,432
First Financial Holding Company, Ltd.		103,021		77,776
Formosa Chemicals & Fibre Corp.		68,000		116,768
Formosa Petrochemical Corp.		44,000		105,746
Formosa Plastic Corp.		95,000		185,122
Formosa Taffeta Company, Ltd.		19,000		14,359
Foxconn Technology Company, Ltd. *		10,200		50,346
Fubon Group Company, Ltd.		83,000		69,906
Fuhwa Financial Holdings Company, Ltd.		169,825		97,046

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
HannStar Display Corp.		105,921	$	27,854
High Tech Computer Corp.		15,520		287,568
Hon Hai Precision Industry Company, Ltd. *		139,719		700,905
Hua Nan Financial Holdings Company, Ltd.		80,580		59,882
InnoLux Display Corp.		52,484		85,324
Inotera Memories, Inc. *		74,780		28,755
Inventec Appliances Corp.		4,620		7,237
Inventec Company, Ltd.		35,280		20,698
KGI Securities Company, Ltd.		23,000		11,457
Kinsus Interconnect Technology Corp.		5,527		10,622
Largan Precision Company, Ltd.		2,080		28,072
Lite-On Technology Corp.		44,096		43,322
Macronix International Company, Ltd.		66,803		26,485
MediaTek, Inc.		24,048		276,134
Mega Financial Holding Company, Ltd.		206,000		129,533
Mitac International		24,691		13,841
Mosel Vitelic, Inc. *		20,600		13,310
Motech Industries, Inc.		2,909		16,485
Nan Ya Plastics Corp.		120,000		187,733
Nan Ya Printed Circuit Board Corp.		4,105		19,121
Nanya Technology Corp. *		56,347		18,967
Novatek Microelectronics Corp., Ltd.		10,275		22,066
Pan-International Industrial Company, Ltd. *		2,000		3,634
Polaris Securities Company, Ltd.		43,990		20,164
Pou Chen Corp.		48,150		36,645
Powerchip Semiconductor Corp. *		170,386		29,896
Powertech Technology, Inc.		11,055		34,273
President Chain Store Corp.		11,000		32,318
ProMOS Technologies, Inc. *		139,000		18,925
Quanta Computer, Inc.		46,164		69,381
Realtek Semiconductor Corp.		9,103		18,392
Richtek Technology Corp.		1,100		9,062
Shin Kong Financial Holding Company, Ltd.		88,791		48,782
Siliconware Precision Industries Company		62,665		85,690
Sino-American Silicon Products, Inc.		1,049		4,736
SinoPac Holdings Company, Ltd.		144,000		50,152
Synnex Technology International Corp.		19,525		37,736
Taishin Financial Holdings Company, Ltd.		103,000		31,611
Taiwan Cellular Corp.		41,802		74,735
Taiwan Cement Corp.		62,205		60,798
Taiwan Cooperative Bank		62,100		45,723
Taiwan Fertilizer Company, Ltd.		16,000		49,221
Taiwan Glass Industrial Corp.		20,787		15,487
Taiwan Secom Company, Ltd.		5,000		8,698
Taiwan Semiconductor
Manufacturing Company, Ltd.		593,028		1,092,258
Tatung Company, Ltd. *		88,000		32,110
Teco Electric & Machinery Company, Ltd.		47,000		20,617
Transcend Information, Inc.		2,000		5,204
Tripod Technology Corp.		8,458		18,694
Tung Ho Steel Enterprise Corp.		6,000		7,900
U-Ming Marine Transport Corp.		11,000		28,996
Unimicron Technology Corp.		17,513		19,449
Uni-President Enterprises Corp.		70,602		75,921
United Microelectronics Corp.		298,729		124,537
Vanguard International Semiconductor Corp.		19,284		10,247

 

The accompanying notes are an integral part of the financial statements.

173

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Via Technologies, Inc. *		23,000	$	15,798
Wafer Works Corp.		1,030		3,470
Walsin Lihwa Corp.		60,000		20,774
Wan Hai Lines, Ltd.		29,400		15,922
Winbond Electronics Corp. *		76,000		13,667
Wintek Corp.		25,000		15,565
Wistron Corp.		24,462		35,417
Ya Hsin Industrial Company, Ltd. *		18,000		0
Yageo Corp.		55,000		16,295
Yang Ming Marine Transport Corp.		26,609		12,915
Yulon Motor Company, Ltd.		15,449		12,395
Zinwell Corp.		1,180		2,222
				7,475,983
Thailand - 0.25%
Advanced Info Service PCL		23,609		61,367
Airports of Thailand PLC		8,700		9,655
Ban Pu Coal Public Co., Ltd.		3,800		42,996
Bangkok Bank PCL, Foreign Shares		39,500		135,093
Bangkok Bank PCL		9,000		30,524
Bank of Ayudhya PCL - Foreign Shares *		65,300		38,614
Bank of Ayudhya PCL *		31,500		18,712
Banpu PCL, Reg.		2,600		29,534
BEC World PCL		18,400		12,037
C.P. Seven Eleven PCL		49,000		15,456
Glow Energy PCL		32,900		27,865
IRPC PCL		254,154		30,433
Kasikornbank PCL - Foreign Shares		49,400		103,104
Kasikornbank PCL		18,300		38,167
Krung Thai Bank PCL		57,000		12,652
Land & Houses PCL, Foreign Shares		42,300		8,414
PTT Aromatics & Refining PCL		17,600		11,103
PTT Chemical PCL		6,700		14,774
PTT Exploration & Production PCL		30,706		133,621
PTT PCL - Foreign Shares		22,482		174,656
PTT, PCL		5,800		44,773
Ratchaburi Electricity Generating Holding PCL		5,900		6,591
Siam Cement PCL - Foreign Shares		6,100		29,985
Siam Cement PCL		3,000		14,396
Siam Commercial Bank PCL		26,128		59,902
Thai Oil Public Company, Ltd.		32,800		47,658
TMB Bank PCL *		714,200		24,405
Total Access Communication PCL		32,000		38,337
				1,214,824
Turkey - 0.32%
Adana Cimento Sanayii Turk Anonim Sirketi,
Class A		430		1,633
Akbank AS		29,426		150,982
Aksigorta AS		2,924		12,425
Anadolu Efes Biracilik Ve Malt Sanayii AS		5,306		56,908
Arcelik AS (a)		8,535		33,089
Asya Katilim Bankasi AS *		22,456		48,753
BIM Birlesik Magazalar AS		1,567		60,528
Dogan Sirketler Grubu Holdings AS *		12,411		18,041
Dogan Yayin Holding AS *		5,141		8,556
Enka Insaat ve Sanayi AS		6,384		56,592

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Turkey (continued)
Eregli Demir ve Celik Fabrikalari TAS		18,200	$	122,253
Ford Otomotiv Sanayi AS		1,674		12,904
HACI Omer Sabanci Holdings, AS		11,671		48,826
KOC Holdings AS *		17,382		60,130
Migros Turk TAS		2,316		41,980
Petkim Petrokimya Holding AS *		1,680		7,659
Tofas Turk Otomobil Fabrik AS		3,007		10,050
Tupras Turkiye Petrol Rafine AS		4,261		99,806
Turk Sise ve Cam Fabrikalari AS *		7,938		10,710
Turk Telekomunikasyon AS *		20,309		72,691
Turkcell Iletisim Hizmetleri AS, ADR		3,371		55,790
Turkcell Iletisim Hizmetleri AS		17,555		116,135
Turkiye Garanti Bankasi AS *		64,386		190,615
Turkiye Halk Bankasi AS		12,137		66,862
Turkiye Is Bankasi AS		31,818		151,164
Turkiye Vakiflar Bankasi Tao (a)		18,789		35,513
Yapi ve Kredi Bankasi AS *		22,571		50,171
				1,600,766
United Kingdom - 15.29%
3i Group PLC		10,976		183,409
Alliance & Leicester PLC		12,018		71,270
AMEC PLC		10,003		153,438
Anglo American PLC		40,506		2,153,127
Antofagasta PLC		11,657		131,026
Associated British Foods PLC		11,071		162,418
AstraZeneca Group PLC		44,616		2,175,115
Astro All Asia Networks PLC, GDR		11,900		11,816
Aviva PLC		78,797		735,535
BAE Systems PLC		109,314		954,050
Barclays PLC		248,523		1,590,269
Berkeley Group Holdings PLC *		1,981		30,572
BG Group PLC		102,421		2,271,835
BHP Billiton PLC		67,657		2,107,239
BICC PLC		13,652		102,243
BP PLC		577,899		5,554,523
British Airways PLC		20,191		91,824
British American Tobacco PLC		46,723		1,578,498
British Energy Group PLC		32,138		429,175
British Land Company PLC		16,537		229,498
British Sky Broadcasting Group PLC		35,921		304,354
BT Group PLC		240,019		753,307
Bunzl PLC		10,352		134,556
Burberry Group PLC		13,705		111,554
Cable & Wireless PLC		76,971		248,150
Cadbury PLC		40,371		463,304
Cairn Energy PLC *		3,843		207,918
Capita Group PLC		17,700		227,732
Carnival PLC		4,892		167,710
Carphone Warehouse		15,560		56,245
Centrica PLC		112,751		671,201
Cobham PLC		34,914		145,944
Compass Group PLC		58,018		386,104
Daily Mail and General Trust PLC		7,598		51,295
Diageo PLC		77,655		1,434,205
Enterprise Inns PLC		15,933		87,657
Eurasian Natural Resources Corp. *		9,579		175,013

 

The accompanying notes are an integral part of the financial statements.

174

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
FirstGroup PLC		14,898	$	164,192
Friends Provident Ethical Investment
Trust PLC		71,011		127,395
GKN PLC		23,154		103,273
GlaxoSmithKline PLC		167,681		3,945,675
Group 4 Securicor PLC		39,711		168,521
Hammerson PLC		8,715		150,352
Hays PLC		47,915		83,127
HBOS PLC		109,437		626,413
Home Retail Group		28,565		131,512
HSBC Holdings PLC		363,254		5,715,705
ICAP PLC		14,665		126,274
IMI PLC		8,607		78,196
Imperial Tobacco Group PLC		31,169		1,027,669
Inchcape PLC		14,570		68,398
Intercontinental Hotels Group PLC		9,172		123,791
International Power PLC		44,166		317,040
Invensys PLC *		24,677		125,916
Investec PLC		14,488		105,922
ITV PLC		105,879		86,113
J Sainsbury PLC		32,639		206,440
Johnson Matthey PLC		7,001		207,161
Kazakhmys PLC		6,325		148,424
Kingfisher PLC		71,735		173,276
Ladbrokes PLC		19,636		80,707
Land Securities Group PLC		13,755		339,831
Legal & General Group PLC		192,426		351,071
Liberty International PLC		7,970		142,350
Lloyds TSB Group PLC		175,675		969,540
Logica PLC		39,107		95,172
London Stock Exchange Group PLC		5,241		75,315
Lonmin PLC, ADR		4,555		287,690
Man Group PLC, ADR		52,923		545,349
Marks & Spencer Group PLC		49,822		237,435
Meggitt PLC		22,267		93,094
Mitchells & Butlers PLC		12,804		66,684
Mondi PLC		12,761		75,760
National Express Group PLC		4,566		86,240
National Grid PLC		78,022		1,015,599
Next Group PLC		6,693		129,143
Old Mutual PLC		160,545		283,938
Pearson PLC		24,618		304,063
Persimmon PLC		10,928		73,971
Pharmstandard *		4,494		108,755
PIK Group		5,524		109,881
Prudential PLC		74,114		736,000
Punch Taverns PLC		6,595		34,819
Reckitt Benckiser PLC		18,819		951,384
Reed Elsevier PLC		32,372		369,981
Rentokil Initial PLC		57,887		76,534
Rexam PLC		19,391		143,113
Rio Tinto PLC		30,333		2,879,475
Rolls-Royce Group PLC *		56,661		408,942
Royal & Sun Alliance PLC		97,733		267,566
Royal Bank of Scotland Group PLC		494,304		2,102,312
Royal Dutch Shell PLC, A Shares		109,159		3,814,808

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Royal Dutch Shell PLC, B Shares		83,863	$	2,883,756
SABMiller PLC		27,766		596,415
Schroders PLC		4,300		79,292
Scottish & Southern Energy PLC		26,468		697,150
Segro PLC, REIT		13,928		110,779
Serco Group PLC		15,066		117,865
Severn Trent PLC		6,985		173,185
Shire, Ltd.		16,356		288,153
Smith & Nephew PLC		28,741		344,904
Smiths Group PLC		11,417		237,388
Stagecoach Group PLC		18,453		107,123
Standard Chartered PLC		43,496		1,176,290
Standard Life PLC		68,753		313,219
Tate & Lyle PLC		15,818		127,483
Taylor Woodrow PLC		28,017		27,536
Tesco PLC		239,737		1,661,705
The Sage Group PLC		37,706		143,765
Thomas Cook Group PLC		18,531		77,167
Thomson Reuters PLC *		6,658		185,987
Tomkins PLC		29,638		80,063
TUI Travel PLC		17,477		66,896
Tullow Oil PLC		22,812		341,923
Unilever PLC		39,356		1,055,597
United Business Media, Ltd.		8,522		92,106
United Utilities Group PLC *		20,022		260,516
Vedanta Resources PLC		4,473		147,689
Vodafone Group PLC		1,679,067		4,290,929
Whitbread PLC		5,858		120,191
William Hill PLC		8,998		46,288
William Morrison Supermarket PLC		75,529		387,747
Wolseley PLC		21,983		177,373
WPP Group PLC		36,207		352,418
Xstrata PLC		19,503		1,087,354
				75,466,688
United States - 0.07%
SNC-Lavalin Group, Inc.		4,800		239,593
Southern Copper Corp.		4,200		107,226
				346,819
TOTAL COMMON STOCKS (Cost $458,669,495)			$	460,051,000
PREFERRED STOCKS - 1.63%
Brazil - 1.32%
Aracruz Celulose SA (k)		9,100		50,078
Banco Bradesco SA (k)		45,550		836,946
Banco do Estado do Rio Grande do Sul (k)		8,516		42,267
Banco Itau Holding Financeira SA (k)		38,225		721,116
Bradespar SA * (k)		7,800		156,000
Brasil Telecom Participacoes SA (k)		3,800		48,980
Brasil Telecom SA (k)		6,301		64,788
Braskem SA, A Shares (k)		6,600		47,293
Centrais Eletricas Brasileiras SA * (k)		4,500		69,129
Cia Brasileira de Distribuicao Grupo Pao de
Acucar (k)		2,120		44,117
Cia de Bebidas das Americas (k)		2,614		160,881
Cia Energetica de Minas Gerais (k)		3,098		66,883

 

The accompanying notes are an integral part of the financial statements.

175

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
PREFERRED STOCKS (continued)
Brazil (continued)
Cia Energetica de Sao Paulo * (k)		5,638	$	90,346
Cia Paranaense de Energia * (k)		3,900		66,994
Cia Vale do Rio Doce (k)		38,982		908,783
Companhia de Bebidas das Americas, ADR * (k)		2,653		164,194
Duratex SA (k)		2,800		47,944
Eletropaulo Metropolitana de Sao Paulo SA (k)		3,483		64,532
Fertilizantes Fosfatados SA (k)		1,000		57,669
Gerdau SA (k)		8,160		153,688
Gol Linhas Aereas Inteligentes SA (k)		2,200		19,787
Investimentos Itau SA (k)		64,832		379,048
Klabin SA (k)		15,000		46,104
Lojas Americanas SA (k)		11,300		71,613
Metalurgica Gerdau SA (k)		8,700		221,503
Net Servicos de Comunicacao SA * (k)		6,466		74,577
Petroleo Brasileiro SA (k)		54,484		1,166,559
Sadia SA, ADR (k)		12,000		79,288
Suzano Papel e Celulose SA * (k)		4,700		59,687
Tam SA * (k)		2,734		54,210
Tele Norte Leste Participacoes SA (k)		3,400		79,160
Telemar Norte Leste SA, Series A (k)		1,400		73,006
Telesp Celular Participacoes SA * (k)		15,750		81,359
Tim Participacoes SA (k)		23,740		52,286
Usinas Siderurgicas de Minas Gerais SA,
Series A (k)		4,942		173,425
Votorantim Celulose e Papel SA * (k)		1,700		36,430
				6,530,670
Germany - 0.21%
Bayerische Motoren Werke (BMW) AG (k)		1,388		47,483
Porsche Automobil Holding SE (k)		2,644		371,147
RWE AG (k)		1,167		101,647
Volkswagen AG (k)		3,316		510,712
				1,030,989
Italy - 0.03%
IFI-Istituto Finanziario Industriale SpA * (k)		2,934		63,221
Unipol SpA (k)		29,800		55,542
				118,763
Malaysia - 0.00%
Malaysian Airline System BHD * (k)		1,800		432
Russia - 0.01%
Surgutneftegaz SADR (k)		17,240		63,788
South Korea - 0.06%
Hyundai Motor Company (k)		1,820		44,769
LG Electronics, Inc. (k)		310		14,086
Samsung Electronics Company, Ltd. (k)		670		222,544
				281,399
TOTAL PREFERRED STOCKS (Cost $6,894,151)			$	8,026,041
WARRANTS - 0.00%
Egypt - 0.00%
EL EZZ Steel Company
(Expiration Date: 09/25/2008)		3,638		13,923

 

International Equity Index Fund (continued)
	Shares or Principal Amount		Value
WARRANTS (continued)
Indonesia - 0.00%
Bank Pan Indonesia Tbk PT
(Expiration Date: 07/10/2009, Strike
Price: IDR 400.00)		25,750	$	1,604
Malaysia - 0.00%
IJM Land
(Expiration date: 12/31/2008)		3,090		0
Taiwan - 0.00%
Sino-American Silicon Products, Inc.
(Expiration date: 09/15/2008)		1,000		1,062
TOTAL WARRANTS (Cost $10,391)			$	16,589
RIGHTS - 0.00%
Australia - 0.00%
Alumina, Ltd. (Expiration date 09/19/2008)		9,970		0
Leighton Holdings, Ltd. (Expiration Date
09/11/2008, Strike Price AUD 35.35)		245		2,348
Indonesia - 0.00%
United Tractors Tbk PT (Expiration Date
09/11/2008)		5,333		1,661
Japan - 0.00%
Dowa Mining Company, Ltd. (Expiration Date:
01/29/2010, Strike Price: JPY 1.00)		5,000		1,413
TOTAL RIGHTS (Cost $0)			$	5,422
SHORT TERM INVESTMENTS - 1.60%
AIM Short-Term Investment Trust,
STIC Prime Portfolio,
Institutional Class	$	6,040,085	$	6,040,085
John Hancock Cash
Investment Trust, 2.5657% (c)(i)		1,871,120		1,871,120
TOTAL SHORT TERM INVESTMENTS
(Cost $7,911,205)			$	7,911,205
Total Investments (International Equity Index Fund)
(Cost $473,485,242) - 96.45%			$	476,010,257
Other Assets in Excess of Liabilities - 3.55%				17,514,745
TOTAL NET ASSETS - 100.00%			$	493,525,002

 

International Opportunities Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 87.58%
Australia - 2.67%
CSL, Ltd.		670,577	$	23,403,323
Brazil - 5.37%
All America Latina Logistica SA		377,032		4,360,155
BM&F BOVESPA SA *		603,712		4,607,468
Gafisa SA		583,783		8,359,200
Petroleo Brasileiro SA, ADR		406,212		21,423,621
Unibanco - Uniao De Bancos
Brasileiros SA, ADR *		69,283		8,283,475
				47,033,919

 

The accompanying notes are an integral part of the financial statements.

176

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada - 7.69%
Potash Corp. of Saskatchewan, Inc.		110,076	$	19,109,193
Research In Motion, Ltd. *		216,211		26,291,258
Rogers Communications, Inc., Class B		605,987		21,961,179
				67,361,630
Denmark - 4.25%
Vestas Wind Systems AS *		274,264		37,215,812
France - 11.35%
Accor SA		204,998		13,556,741
Alstom		202,072		20,526,899
AXA Group SA		548,269		17,493,861
Cie Generale de Geophysique-Veritas *		227,619		9,345,953
JC Decaux SA		302,094		6,690,178
PPR SA		58,057		6,751,387
Veolia Environnement SA		468,262		25,116,042
				99,481,061
Germany - 5.67%
Commerzbank AG		194,837		5,707,162
Deutsche Bank AG		103,411		8,782,347
GEA Group AG		266,382		8,373,482
Linde AG		213,028		26,795,570
				49,658,561
Hong Kong - 2.46%
CNOOC, Ltd.		5,424,600		8,434,167
Esprit Holdings, Ltd.		1,056,000		8,717,560
Shangri-La Asia, Ltd.		2,303,308		4,422,770
				21,574,497
India - 0.92%
ICICI Bank, Ltd., SADR		259,225		8,041,159
Israel - 3.03%
Teva Pharmaceutical Industries, Ltd., SADR		560,284		26,523,845
Japan - 8.43%
Daikin Industries, Ltd.		245,805		8,285,696
Daiwa Securities Group, Inc.		953,000		7,357,571
Fujitsu, Ltd.		654,000		4,520,356
Hitachi Construction Machinery Company, Ltd.		161,436		3,773,877
Marubeni Corp.		2,024,000		12,523,246
Mizuho Financial Group, Inc.		1,701		7,240,998
Nintendo Company, Ltd.		64,200		30,139,307
				73,841,051
Mexico - 2.37%
America Movil SA de CV, Series L, ADR		250,929		12,892,732
Cemex SA de CV, SADR *		393,481		7,889,294
				20,782,026
Netherlands - 2.05%
Heineken NV (a)		383,647		17,986,473
Singapore - 0.35%
Capitaland, Ltd. (a)		1,016,587		3,105,057
South Africa - 1.03%
MTN Group, Ltd.		586,346		9,014,792
Spain - 1.27%
Gamesa Corporacion Tecnologica SA		235,963		11,159,890

 

International Opportunities Fund (continued)
			Shares or Principal Amount		Value
COMMON STOCKS (continued)
Switzerland - 13.46%
ABB, Ltd. *				761,968	$	18,689,336
Actelion, Ltd. *				162,816		9,345,843
Credit Suisse Group AG				473,163		21,946,572
Julius Baer Holding AG				280,750		17,085,142
Lonza Group AG				182,096		25,705,814
Nestle SA				570,025		25,115,065
						117,887,772
Taiwan - 3.46%
Hon Hai Precision Industry Company, Ltd. *				2,511,000		12,596,510
Taiwan Semiconductor
Manufacturing Company, Ltd., SADR				1,820,486		17,676,919
						30,273,429
United Kingdom - 9.54%
BG Group PLC				890,078		19,743,123
BHP Billiton PLC				283,657		8,834,757
British Sky Broadcasting Group PLC				940,374		7,967,658
Johnson Matthey PLC				135,440		4,007,701
Man Group PLC, ADR				422,557		4,354,266
Reckitt Benckiser PLC				255,516		12,917,462
Rio Tinto PLC	��			89,601		8,505,714
Tesco PLC				2,485,874		17,230,507
						83,561,188
United States - 2.21%
Las Vegas Sands Corp. * (a)				272,232		12,906,519
Schlumberger, Ltd.				68,702		6,473,103
		��				19,379,622
TOTAL COMMON STOCKS (Cost $744,337,001)					$	767,285,107
SHORT TERM INVESTMENTS - 3.41%
John Hancock Cash
Investment Trust, 2.5657% (c)(i)			$	29,882,813	$	29,882,813
TOTAL SHORT TERM INVESTMENTS
(Cost $29,882,813)					$	29,882,813

 

The accompanying notes are an integral part of the financial statements.

177

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Opportunities Fund (continued)
	Shares or Principal Amount			Value
REPURCHASE AGREEMENTS - 12.59%
Repurchase Agreement with State
Street Corp. dated 08/29/2008 at
1.70% to be repurchased at
$110,339,838 on 09/02/2008,
collateralized by $111,970,000
Federal Home Loan Bank, 3.00%
due 06/30/2009 (valued at
$112,529,850, including interest)	$	110,319,000		$	110,319,000
TOTAL REPURCHASE AGREEMENTS
(Cost $110,319,000)				$	110,319,000
Total Investments (International Opportunities Fund)
(Cost $884,538,814) - 103.58%				$	907,486,920
Liabilities in Excess of Other Assets - (3.58)%					(31,381,285	)
TOTAL NET ASSETS - 100.00%				$	876,105,635
The portfolio had the following five top industry concentrations as of August 31, 2008 (as a percentage of total net assets):
Industrial Machinery		6.78	%
Banking		5.47	%
Financial Services		5.19	%
Chemicals		5.12	%
Electrical Equipment		4.25	%

 

International Small Cap Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 88.24%
Australia - 7.65%
Billabong International, Ltd.		452,750	$	4,954,738
Downer EDI, Ltd.		663,999		4,200,799
Emeco Holdings, Ltd.		2,865,407		2,445,806
Iluka Resources, Ltd.		1,702,990		6,492,112
Pacific Brands, Ltd.		1,913,090		3,632,019
PaperlinX, Ltd.		2,678,216		4,452,290
				26,177,764
Belgium - 1.03%
Barco NV		75,310		3,516,669
Bermuda - 2.11%
Bio-Treat Technology, Ltd. (a)		6,693,612		963,671
Ngai Lik Industrial Holdings, Ltd.		15,461,530		479,786
People’s Food Holdings, Ltd.		8,982,174		5,787,980
				7,231,437
Brazil - 0.29%
Companhia de Saneamento de Minas Gerais *		66,084		999,369
Canada - 7.69%
ATS Automation Tooling Systems, Inc. *		852,660		6,978,353
Biovail Corp.		525,900		5,745,376
Canaccord Capital, Inc.		110,800		960,030
Dorel Industries, Inc., Class B		196,800		6,262,829
GSI Group, Inc. *		470,784		2,353,920
MDS, Inc. *		227,577		3,487,171

 

International Small Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Mega Brands, Inc. *		196,700	$	509,441
				26,297,120
Cayman Islands - 0.25%
Chitaly Holdings, Ltd.		9,234,729		857,416
China - 1.54%
BYD Company, Ltd., H Shares		1,236,522		1,418,121
Sinotrans, Ltd., Class H		17,091,000		3,860,616
				5,278,737
Finland - 3.51%
Amer Sports Oyj, A Shares		344,084		4,633,358
Elcoteq SE, A Shares *		319,781		2,047,108
Huhtamaki Oyj		529,206		5,328,719
				12,009,185
Germany - 1.51%
Jenoptik AG *		737,145		5,180,205
Hong Kong - 7.46%
AAC Acoustic Technology Holdings, Inc. *		3,016,000		2,407,356
Dah Sing Financial Group		633,174		3,879,762
Fountain Set Holdings, Ltd.		11,313,425		1,121,433
Giordano International, Ltd. (a)		7,906,365		2,868,669
Lerado Group Holding Company, Ltd.		12,649,682		819,994
TCL Communication Technology
Holdings, Ltd. * (a)		37,286,192		713,013
Texwinca Holdings, Ltd.		7,030,907		6,029,200
Travelsky Technology, Ltd., Class H		2,655,132		1,612,703
Weiqiao Textile Company, Ltd. (a)		3,138,106		2,487,509
Yue Yuen Industrial Holdings, Ltd.		1,286,140		3,563,263
				25,502,902
Japan - 8.53%
Aiful Corp.		324,750		2,624,729
Descente, Ltd.		1,076,860		5,971,445
Meitec Corp.		159,911		4,413,315
Nichii Gakkan Company, Ltd. (a)		373,866		4,778,104
Sohgo Security Services Company, Ltd.		357,373		4,066,996
Takuma Company, Ltd.		849,000		2,611,982
USS Company, Ltd.		68,130		4,686,614
				29,153,185
Luxembourg - 0.33%
Thiel Logistik AG *		577,341		1,139,745
Netherlands - 4.32%
Draka Holding NV		57,148		1,709,583
Imtech NV		120,274		3,085,705
OPG Groep NV		252,718		4,224,613
SBM Offshore NV		113,984		2,757,712
USG People NV		164,589		2,978,778
				14,756,391
Norway - 1.83%
Tomra Systems ASA		924,420		6,257,140
Philippines - 0.17%
First Gen Corp.		1,066,400		576,087
Singapore - 1.72%
Huan Hsin Holdings, Ltd.		3,335,298		1,289,456

 

The accompanying notes are an integral part of the financial statements.

178

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Singapore (continued)
Osim International, Ltd. * (a)		4,045,008	$	714,605
Venture Corp., Ltd.		551,229		3,871,596
				5,875,657
South Korea - 8.40%
Daeduck Electronics Company, Ltd. (a)		448,800		1,430,312
Daegu Bank		374,000		4,146,194
Halla Climate Control Company, Ltd.		600,100		5,589,134
Intops Company, Ltd.		96,966		1,352,749
People & Telecommunication, Inc.		263,304		1,260,999
Pusan Bank		418,160		4,650,316
Sindo Ricoh Company, Ltd.		78,430		4,398,189
Youngone Corp.		747,110		5,905,096
				28,732,989
Spain - 0.16%
Sol Melia SA		62,400		535,757
Sweden - 3.06%
D. Carnegie & Company AB		475,626		5,957,255
Niscayah Group AB		2,496,590		4,490,743
				10,447,998
Switzerland - 1.53%
Verwaltungs & Privat Bank AG		26,945		5,236,652
Taiwan - 9.11%
Acbel Polytech, Inc.		5,202,000		2,198,444
BenQ Corp.		114,000		57,387
D-Link Corp.		3,809,692		4,590,747
Giant Manufacturing Company, Ltd.		892,500		2,590,748
KYE System Corp.		3,575,965		3,558,684
Pihsiang Machinery Manufacturing Company,
Ltd. *		2,610,000		4,122,239
Simplo Technology Company, Ltd.		894,960		3,586,655
Ta Chong Bank, Ltd. *		17,866,000		4,640,361
Taiwan Fu Hsing Industrial Company, Ltd.		2,886,000		1,301,255
Test-Rite International Company, Ltd.		7,905,403		4,497,262
				31,143,782
Thailand - 4.37%
Bank of Ayudhya PCL, NVDR *		8,014,600		4,760,807
Glow Energy PCL		6,865,525		5,814,843
Total Access Communication PCL		3,445,460		4,360,688
				14,936,338
United Kingdom - 9.95%
Bodycote International PLC		1,457,303		6,159,831
Burberry Group PLC		470,439		3,829,222
Fiberweb PLC		2,767,330		2,285,264
Future PLC		5,499,140		2,683,456
Game Group PLC		923,955		4,534,330
Henderson Group PLC		1,856,240		4,383,431
New Star Asset Management Group, Ltd.		2,257,236		4,309,149
Yule Catto & Company PLC		2,196,604		5,849,144
				34,033,827
United States - 1.72%
Steiner Leisure, Ltd. *		165,855		5,871,267
TOTAL COMMON STOCKS (Cost $350,531,101)			$	301,747,619

 

International Small Cap Fund (continued)
	Shares or Principal Amount			Value
SHORT TERM INVESTMENTS - 9.34%
John Hancock Cash
Investment Trust, 2.5657% (c)(i)	$	6,303,048		$	6,303,048
Paribas Corp.
2.125% due 09/02/2008		25,630,000			25,630,000
TOTAL SHORT TERM INVESTMENTS
(Cost $31,933,048)				$	31,933,048
Total Investments (International Small Cap Fund)
(Cost $382,464,149) - 97.58%				$	333,680,667
Other Assets in Excess of Liabilities - 2.42%					8,287,855
TOTAL NET ASSETS - 100.00%				$	341,968,522
The portfolio had the following five top industry concentrations as of August 31, 2008 (as a percentage of total net assets):
Apparel & Textiles		9.53	%
Banking		6.85	%
Industrial Machinery		5.35	%
Business Services		4.66	%
Financial Services		4.44	%

 

International Small Company Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.30%
Australia - 8.73%
ABB Grain, Ltd.		58,186	$	410,047
Acrux, Ltd. *		23,000		22,670
Adelaide Brighton, Ltd.		105,031		324,633
Aditya Birla Minerals, Ltd.		40,783		56,669
Admiralty Resources NL *		399,847		44,103
AED Oil, Ltd. *		34,925		58,666
Aevum, Ltd.		34,460		52,648
AJ Lucas Group, Ltd.		13,180		69,833
Alchemia, Ltd. *		43,512		10,781
Alesco Corp., Ltd.		26,105		153,918
Alkane Resources, Ltd. *		7,000		1,974
Alliance Resources, Ltd. *		36,000		27,555
Amadeus Energy, Ltd. *		46,767		19,393
Amalgamated Holdings, Ltd.		23,828		95,996
Andean Resources, Ltd. *		79,891		87,365
Ansell, Ltd.		45,924		483,650
Anzon Australia, Ltd. *		37,000		30,564
APA Group		121,410		377,364
APN News & Media, Ltd.		100,258		283,764
Aquila Resources, Ltd. *		41,695		577,956
ARB Corp., Ltd.		16,596		55,411
Arrow Energy NL *		145,635		431,858
Atlas Iron, Ltd. *		50,850		98,474
Ausdrill, Ltd.		43,573		95,032
Ausenco, Ltd.		15,017		201,899
Austal, Ltd.		37,191		75,857
Austar United Communications, Ltd. *		187,684		189,104
Austereo Group, Ltd.		68,999		103,560
Australian Agricultural Company, Ltd.		55,936		150,484

 

The accompanying notes are an integral part of the financial statements.

179

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Australian Infrastructure Fund		122,348	$	276,552
Australian Pharmaceutical Industries, Ltd. *		68,318		40,272
Australian Wealth Management, Ltd.		172,770		212,071
Australian Worldwide Exploration, Ltd. *		147,861		441,470
Automotive Holdings Group		11,804		19,276
AVJennings, Ltd.		48,073		25,914
Avoca Resources, Ltd. *		43,450		68,825
AWB, Ltd.		119,690		299,704
Babcock & Brown Wind Partners		251,975		288,362
Bank of Queensland, Ltd.		44,227		597,854
Beach Petroleum, Ltd.		372,564		365,150
Becton Property Group		9,805		6,281
Bendigo Mining, Ltd. *		178,194		26,666
Biota Holdings, Ltd. *		39,986		25,652
Blackmores, Ltd.		2,178		34,098
Boom Logistics, Ltd.		77,274		78,851
Bradken, Ltd.		33,095		310,139
Brickworks, Ltd.		40,654		414,218
Brockman Resources, Ltd. *		29,655		43,401
Buru Energy, Ltd. *		31,633		7,796
Cabcharge Australia, Ltd.		27,079		159,943
Campbell Brothers, Ltd.		13,677		410,679
Candle Australia, Ltd.		18,516		23,009
Cardno, Ltd.		22,665		106,205
Carnarvon Petroleum, Ltd. *		170,442		63,722
CBH Resources, Ltd. *		158,181		14,127
CEC Group, Ltd.		8,875		1,363
Cellestis, Ltd. *		15,855		30,118
Centamin Egypt, Ltd. *		205,300		191,811
Centennial Coal Company, Ltd.		86,166		419,690
Ceramic Fuel Cells, Ltd. *		66,430		25,269
Challenger Financial Services Group, Ltd.		129,149		298,401
Charter Hall Group		70,261		53,149
Citadel Resource Group, Ltd. *		206,164		51,115
Citigold Corp., Ltd. *		151,498		22,739
Clinuvel Pharmaceuticals, Ltd. *		69,980		17,949
Clough, Ltd. *		152,024		103,407
Coal of Africa, Ltd. *		111,349		290,243
Cockatoo Coal, Ltd. *		88,688		55,578
Coeur d’Alene Mines Corp. *		36,607		66,027
Coffey International, Ltd.		16,002		33,093
Comdek, Ltd. *		90,698		17,450
Compass Resources NL *		15,577		8,398
ConnectEast Group		456,313		318,873
Consolidated Rutile, Ltd.		52,500		16,191
CopperCo, Ltd. *		173,658		59,022
Corporate Express Australia, Ltd.		25,148		107,442
Count Financial, Ltd.		44,540		61,937
Coventry Group, Ltd. *		4,500		7,704
Crane Group, Ltd.		21,927		259,894
Crescent Gold, Ltd. *		120,652		10,293
CuDeco, Ltd. *		25,525		58,930
Customers, Ltd. *		272,077		22,741
David Jones, Ltd.		139,065		515,133
Deep Yellow, Ltd. *		341,154		72,691
Devine, Ltd.		50,049		37,271

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Dominion Mining, Ltd.		15,905	$	34,066
Downer EDI, Ltd.		72,138		456,382
Duet Group		200,055		510,446
Eastern Star Gas, Ltd. *		169,832		83,175
Emeco Holdings, Ltd.		143,215		122,243
Emitch, Ltd.		50,921		30,046
Energy Developments, Ltd.		42,834		107,912
Energy World Corp., Ltd. *		186,552		151,810
Envestra, Ltd.		170,935		102,167
Extract Resources, Ltd. *		47,541		38,782
Felix Resources, Ltd.		18,106		310,355
Ferraus, Ltd. *		30,170		23,648
FKP Property Group, Ltd.		66,064		252,955
Fleetwood Corp., Ltd.		8,920		70,097
Flight Centre, Ltd.		15,759		256,556
Flinders Mines, Ltd. *		272,280		27,774
Forest Enterprises Australia, Ltd.		101,860		46,347
Fox Resources, Ltd. *		49,000		20,480
Funtastic, Ltd.		33,265		11,813
Futuris Corp., Ltd.		224,077		264,226
Geodynamics, Ltd. *		56,620		61,622
Gindalbie Metals, Ltd. *		112,045		86,363
Giralia Resources NL *		24,304		27,009
Golden West Resources, Ltd. *		15,800		22,960
Goodman Fielder, Ltd.		434,158		547,437
GrainCorp., Ltd. *		18,063		135,638
Grange Resources Corp., Ltd. *		20,914		34,338
GRD, Ltd.		54,499		34,642
Great Southern Plantations, Ltd.		47,114		23,733
GUD Holdings, Ltd.		13,336		76,168
Gunns, Ltd.		141,755		203,889
GWA International, Ltd.		65,259		158,502
Hastie Group, Ltd.		22,096		51,888
Healthscope, Ltd.		69,459		249,669
Heron Resources, Ltd. *		9,000		2,584
HFA Holdings, Ltd. *		76,943		75,633
Hills Industries, Ltd.		38,710		140,642
Horizon Oil, Ltd. *		172,869		47,146
Housewares International, Ltd.		41,416		45,919
IBA Health, Ltd. *		515,137		309,483
IBT Education, Ltd.		76,746		156,658
iiNET, Ltd.		45,707		68,905
Iluka Resources, Ltd.		114,108		435,001
Imdex, Ltd.		41,654		69,156
Independence Group NL		25,263		70,926
Independent Practitioner Network, Ltd. *		7,772		1,763
Indophil Resources NL *		72,190		74,860
Industrea, Ltd.		171,666		79,610
Infomedia, Ltd.		87,333		27,988
Innamincka Petroleum, Ltd. *		35,386		15,655
Intrepid Mines, Ltd. *		121,756		24,001
Invocare, Ltd.		23,678		106,745
IOOF Holdings, Ltd.		26,905		124,830
Iress Market Technology, Ltd.		22,352		122,236
Jabiru Metals, Ltd. *		30,000		9,718
JB Hi-Fi, Ltd.		29,369		346,134

 

The accompanying notes are an integral part of the financial statements.

180

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Kagara Zinc, Ltd.		47,616	$	126,692
Karoon Gas Australia, Ltd. *		27,971		99,195
Kimberley Metals, Ltd. *		16,630		1,971
Kings Minerals NL *		37,728		7,083
Kingsgate Consolidated, Ltd. *		19,704		83,471
Lihir Gold, Ltd. *		36,260		73,521
Linc Energy, Ltd. *		94,657		282,189
Lynas Corp, Ltd. *		195,371		191,021
MAC Services Group *		4,408		9,614
MacArthur Coal, Ltd.		24,217		276,661
Macmahon Holdings, Ltd.		156,391		233,982
Macquarie Communications
Infrastructure Group, Ltd.		159,794		407,826
Macquarie Media Group, Ltd.		54,334		164,800
Mantra Resources, Ltd. *		2,000		3,821
Marion Energy, Ltd. *		54,928		40,629
Maxitrans Industries, Ltd.		86,185		42,730
McGuigan Simeon Wines, Ltd. *		35,945		29,642
McPherson’s, Ltd.		18,009		46,588
Melbourne IT, Ltd.		25,442		66,377
MEO Australia, Ltd. *		115,196		42,080
Mermaid Marine Australia, Ltd.		50,390		71,496
Metals X, Ltd. *		128,000		32,646
Minara Resources, Ltd.		52,139		68,865
Mincor Resources NL		54,880		88,494
Mineral Deposits, Ltd. *		137,144		60,556
Mineral Resources, Ltd. *		22,399		136,178
Mirabela Nickel, Ltd. *		18,896		80,685
Molopo Australia, Ltd. *		35,633		41,179
Monadelphous Group, Ltd.		21,783		305,064
Mortgage Choice, Ltd.		19,081		17,154
Mosaic Oil NL *		258,008		26,398
Mount Gibson Iron, Ltd. *		151,507		310,093
Murchison Metals, Ltd. *		104,130		196,606
MYOB, Ltd.		74,610		71,466
New Hope Corp., Ltd.		159,455		635,615
Nexus Energy, Ltd. *		164,231		194,015
Nido Petroleum, Ltd. *		256,103		65,491
Nomad Building Solutions, Ltd. *		19,727		30,251
Oakton, Ltd.		15,760		52,800
Otto Energy, Ltd. *		140,395		41,802
Pacific Brands, Ltd.		168,129		319,195
Pan Australian Resources, Ltd. *		410,964		303,798
Pan Pacific Petroleum NL *		177,591		36,407
PaperlinX, Ltd.		147,629		245,420
Peet & Company, Ltd.		47,342		99,526
Peptech, Ltd. *		60,402		57,802
Perilya, Ltd.		22,845		10,273
Perpetual Trust of Australia, Ltd.		10,479		400,188
Perseus Mining, Ltd. *		50,479		40,101
Petsec Energy, Ltd. *		36,147		12,445
Pharmaxis, Ltd. *		50,510		95,223
Photon Group, Ltd.		14,016		35,318
Platinum Asset Mangement, Ltd.		61,470		188,574
Platinum Australia Ltd *		49,395		105,654
PMP, Ltd.		84,363		89,869

 

International Small Company Fund (continued)
	Shares or Principal Amount			Value
COMMON STOCKS (continued)
Australia (continued)
Port Bouvard, Ltd. *		14,000		$	5,384
Portman, Ltd. *		14,292			228,165
Poseidon Nickel, Ltd. *		47,198			28,212
Premier Investments, Ltd. *		7,850			38,455
Primary Health Care, Ltd.		92,575			414,983
Prime Television, Ltd.		6,418			12,960
Primelife Corp., Ltd.		105,874			40,662
Programmed Maintenance Services, Ltd.		31,378			104,840
pSivida Corp. *		2,379			6,537
Publishing & Broadcasting, Ltd.		37,206			103,359
Pure Energy Resources, Ltd. *		29,000			40,870
Ramsay Health Care, Ltd.		32,566			300,769
RCR Tomlinson, Ltd.		22,598			22,968
Realestate.com.au, Ltd. *		2,110			9,040
Reckon, Ltd.		37,302			37,106
Redflex Holdings, Ltd.		29,061			65,084
Resolute Mining, Ltd. *		43,345	��		59,255
Reverse Corp., Ltd.		22,464			35,966
Ridley Corp., Ltd.		52,284			50,539
Riversdale Mining, Ltd. *		49,088			434,958
Roc Oil Company, Ltd. *		87,440			88,876
SAI Global, Ltd.		31,667			82,750
Salinas Energy, Ltd. *		105,014			26,883
Sally Malay Mining, Ltd.		55,567			103,581
Salmat, Ltd.		25,789			74,799
Sedgman, Ltd. *		9,623			22,197
Seek, Ltd.		54,088			242,487
Select Harvests, Ltd.		6,500			31,465
ServCorp, Ltd.		13,939			43,903
Service Stream, Ltd.		51,452			43,469
Seven Network, Ltd. *		45,662			305,539
Sigma Pharmaceuticals, Ltd.		279,174			309,898
Silex Systems, Ltd. *		32,645			200,022
Sino Gold, Ltd. *		68,223			248,759
Sino Strategic International, Ltd. *		11,948			12,549
Sirtex Medical, Ltd. *		11,366			23,365
Skilled Group, Ltd.		13,684			33,831
SMS Management & Technology, Ltd.		12,633			41,669
SP AusNet		7,985			7,845
SP Telemedia, Ltd.		63,587			8,692
Spark Infrastructure Group		295,417			391,343
Specialty Fashion Group, Ltd.		51,331			33,571
Sphere Investments Ltd *		18,205			25,127
Spotless Group, Ltd.		45,977			142,763
St. Barbara, Ltd. *		137,516			25,207
Straits Resources, Ltd.		61,211			288,817
Strike Resources, Ltd./Australia *		22,520			26,616
STW Communications Group, Ltd.		36,346			42,844
Sundance Resources, Ltd./Australia *		344,338			74,047
Sunland Group, Ltd.		53,985			110,546
Sunshine Gas, Ltd. *		59,677			144,536
Super Cheap Auto Group, Ltd.		17,728			40,151
Swick Mining Services, Ltd. *		28,000			30,589
Talent2 International, Ltd.		6,000			8,169
Tamaya Resources, Ltd. *		219,476			5,810
Tap Oil, Ltd. *		40,556			39,662

 

The accompanying notes are an integral part of the financial statements.

181

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Tassal Group, Ltd.		31,667	$	63,535
Technology One, Ltd.		46,859		36,120
Ten Network Holdings, Ltd.		210,484		303,488
Terramin Australia, Ltd. *		14,500		24,751
TFS Corp., Ltd.		51,800		61,134
Thakral Holdings Group		137,513		88,493
The Reject Shop, Ltd.		8,900		82,230
Timbercorp, Ltd.		66,576		48,293
Tower Australia Group, Ltd.		79,915		203,044
Tox Free Solutions, Ltd. *		16,000		24,070
Transfield Services Infrastructure Fund		61,169		75,069
Transfield Services, Ltd.		43,997		316,268
Transpacific Industries Group, Ltd.		52,016		311,647
Troy Resources NL		18,408		25,264
United Group, Ltd.		44,196		518,734
United Minerals Corp. *		26,754		44,073
UXC, Ltd.		52,216		46,346
Village Roadshow, Ltd.		27,228		39,693
Virgin Blue Holdings, Ltd.		29,257		14,349
Vision Group Holdings, Ltd.		11,097		16,917
Washington H Soul Pattinson & Company, Ltd.		43,892		421,434
Watpac, Ltd.		38,387		88,151
Wattyl, Ltd.		17,759		20,493
WDS, Ltd. *		22,198		47,076
Webster, Ltd.		29,149		26,394
West Australian Newspapers Holdings, Ltd.		48,457		376,444
Western Areas NL *		30,734		243,891
White Energy Company, Ltd. *		20,704		67,179
Whitehaven Coal, Ltd.		26,881		83,290
WHK Group, Ltd.		56,586		53,000
Wide Bay Australia, Ltd.		4,837		38,511
Windimurra Vanadium, Ltd. *		26,928		55,299
Wotif.com Holdings, Ltd. *		22,005		67,574
				35,327,401
Austria - 1.12%
Agrana Beteiligungs AG		1,721		134,997
Andritz AG		12,463		764,308
A-TEC Industries AG *		621		56,922
Austrian Airlines AG *		13,651		119,712
BetandWin.com Interactive Entertainment AG *		7,836		217,269
BWT AG		1,398		41,683
Constantia Packaging AG		1,661		114,644
Flughafen Wien AG		3,854		312,600
Frauenthal Holdings AG		2,607		58,072
Intercell AG *		10,364		453,544
Lenzing AG		262		119,553
Mayr-Melnhof Karton AG		3,259		256,687
Oesterreichische Post AG *		13,510		533,874
Palfinger AG		4,482		99,948
RHI AG *		7,669		347,393
Rosenbauer International AG		1,472		68,744
S&T System Integration & Technology
Distribution AG *		541		26,901
Schoeller-Bleckmann Oilfield Equipment AG		3,462		287,593
Uniqa Versicherungen AG		14,844		429,389
Warimpex Finanz- und Beteiligungs AG		3,221		22,849

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Austria (continued)
Wolford AG		1,578	$	46,249
				4,512,931
Belgium - 1.31%
Ackermans & Van Haaren NV		7,861		779,134
Banque Nationale de Belgique		75		329,865
Barco NV		3,889		181,600
Bekaert SA		4,106		716,017
Compagnie d’Entreprises (CFE)		2,228		233,821
Compagnie Immobiliere de Belgique SA		645		37,850
Compagnie Maritime Belge SA		2,799		148,922
Deceuninck NV		4,147		44,808
Devgen *		2,298		36,312
Duvel Moortgat SA		873		52,905
Econocom Group SA		5,040		61,965
Elia System Operator SA/NV		5,397		208,111
Euronav NV		7,637		323,072
Exmar NV		4,863		128,098
Innogenetics NV *		3,366		31,771
International Brachytherapy *		6,399		29,509
Ion Beam Applications SA		4,206		95,018
Kinepolis Group NV		391		13,805
Lotus Bakeries SA		34		13,451
Melexis NV		4,995		76,468
Omega Pharma SA		5,762		291,631
Option NV *		7,907		39,092
Recticel SA		3,266		40,014
Roularta Media Group NV		668		23,931
SA D’Ieteren Trading NV		569		143,158
Sapec SA		305		54,565
Sioen Industries NV		1,985		21,261
Sipef SA		170		99,765
Telenet Group Holding NV *		17,068		388,758
Tessenderlo Chemie NV		10,795		596,908
Van De Velde NV		1,407		55,536
				5,297,121
Canada - 10.12%
20-20 Technologies, Inc. *		6,400		25,316
Aastra Technologies, Ltd. *		4,100		59,774
Absolute Software Corp. *		9,500		118,996
Accrete Energy, Inc. *		6,894		40,515
Aecon Group, Inc.		13,800		217,696
AGF Management, Ltd. *		30,758		708,842
Akita Drilling, Ltd.		2,900		33,730
Alamos Gold, Inc. *		27,052		156,687
Alberta Clipper Energy, Inc. *		19,300		50,168
Alexco Resource Corp. *		5,500		14,141
Allen-Vanguard Corp. *		12,747		13,566
Altius Minerals Corp. *		6,200		38,480
Amerigo Resources, Ltd.		22,400		31,433
Anderson Energy, Ltd. *		20,300		72,650
Angiotech Pharmaceuticals, Inc. *		28,094		52,389
Antrim Energy, Inc. *		29,900		79,129
Anvil Mining, Ltd. *		20,649		140,992
Aquiline Resources, Inc. *		15,500		92,404
Astral Media, Inc.		17,089		534,977

 

The accompanying notes are an integral part of the financial statements.

182

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Atrium Innovations, Inc. *		4,200	$	61,904
ATS Automation Tooling Systems, Inc. *		29,800		243,890
Augusta Resource Corp. *		17,500		83,561
Aurelian Resources, Inc. *		25,200		143,586
Aurizon Mines, Ltd. *		38,200		118,723
Aurora Energy Resources, Inc. *		10,400		22,332
Axia NetMedia Corp. *		9,200		20,795
Baffinland Iron Mines Corp. *		24,800		36,903
Baja Mining Corp. *		16,100		13,343
Ballard Power Systems, Inc. *		21,400		99,160
Bankers Petroleum, Ltd. *		43,086		196,805
Baytex Energy Trust		1,700		52,034
Bellus Health, Inc. *		3,500		4,285
Bioms Medical Corp. *		21,000		64,475
Bioteq Environmental Tech, Inc. *		11,100		31,885
Biovail Corp.		54,800		598,681
Birch Mountain Resources, Ltd. *		11,200		2,110
Birchcliff Energy, Ltd. *		28,124		338,240
BMTC Group, Inc., Class A		4,500		79,464
BNK Petroleum, Inc. *		12,925		22,877
Boralex, Inc., Class A *		9,100		123,842
Bow Valley Energy, Ltd. *		21,100		89,225
Breaker Energy, Ltd., Class A *		8,800		87,685
Breakwater Resources, Ltd. *		63,300		20,269
Calfrac Well Services, Ltd.		7,700		185,067
Calvalley Petroleums, Inc., Class A *		15,977		38,220
Canaccord Capital, Inc.		8,800		76,248
Canada Bread Company, Ltd.		3,340		188,736
Canadian Hydro Developers, Inc. *		39,880		175,400
Canadian Royalties, Inc. *		24,900		22,747
Canadian Superior Energy, Inc. *		38,300		146,808
Canadian Western Bank		18,334		412,679
Canam Group, Inc., Class A		15,300		134,873
Candax Energy, Inc. *		82,101		52,579
Canfor Corp. *		31,254		319,663
Cangene Corp. *		6,400		27,727
CanWest Global Communications Corp. *		15,050		42,947
Capstone Mining Corp. *		17,200		50,379
Cardiome Pharma Corp. *		18,800		165,903
Carpathian Gold, Inc. *		20,000		5,462
Cascades, Inc.		24,850		163,592
Catalyst Paper Corp. *		121,263		138,188
CCL Industries, Inc., Class B		8,200		271,454
CE Franklin, Ltd. *		2,786		27,550
Celestica, Inc. *		75,600		640,087
Celtic Exploration, Ltd. *		10,700		159,724
Central Sun Mining, Inc. *		11,052		7,286
Certicom Corp. *		4,100		6,255
Chariot Resources, Ltd. *		40,500		21,741
CHC Helicopter Corp., Class A		2,600		74,538
Clarke, Inc.		10,800		71,200
Claude Resources, Inc. *		35,700		21,182
Coalcorp Mining, Inc. *		33,771		42,301
Cogeco Cable, Inc.		5,900		244,490
Com Dev International, Ltd. *		14,900		45,607
Comaplex Minerals Corp. *		5,776		32,639

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Compton Petroleum Corp. *		33,118	$	281,962
Connacher Oil & Gas, Ltd. *		71,923		277,721
Constellation Software, Inc.		2,100		58,344
Corby Distilleries, Ltd.		7,022		131,605
Corridor Resources, Inc. *		24,300		132,737
Corus Entertainment, Inc., Class B		27,513		506,055
Cott Corp. *		10,300		19,595
Crew Energy, Inc. *		18,024		254,617
Crew Gold Corp *		14,900		7,999
Cryocath Technologies, Inc. *		7,000		29,337
Crystallex International Corp. *		43,800		57,338
Dalsa Corp.		6,700		60,576
Delphi Energy Corp. *		30,700		72,283
Denison Mines Corp. *		59,616		337,438
Descartes Systems Group, Inc. *		10,100		34,244
Divestco, Inc. *		2,800		4,852
Dorel Industries, Inc., Class B		10,400		330,963
Dundee Precious Metals, Inc. *		17,200		89,094
Dundee Wealth Management, Inc.		21,542		304,323
Eastern Platinum, Ltd. *		203,624		301,083
Eldorado Gold Corp. *		51,263		407,478
Emera, Inc.		9,600		213,012
Empire Company, Ltd.		6,100		268,117
Endeavour Silver Corp. *		6,200		14,014
Enghouse Systems, Ltd.		1,100		5,449
Entree Gold, Inc. *		31,600		62,795
Equinox Minerals, Ltd. *		125,209		471,686
Equitable Group, Inc.		4,400		87,478
Etruscan Resources, Inc. *		15,700		14,047
European Goldfields, Ltd. *		47,300		188,879
Evertz Technologies, Ltd.		9,300		176,488
Exco Technologies, Ltd.		7,900		17,112
Exfo Electro Optical Engineering, Inc. *		8,300		34,942
Farallon Resources, Ltd. *		70,400		37,129
First Calgary Petroleums, Ltd. *		99,300		235,672
First Nickel, Inc. *		30,500		6,032
Flint Energy Services, Ltd. *		13,600		224,660
FNX Mining Company, Inc. *		25,900		378,084
Forsys Metals Corp. *		15,300		71,327
Forzani Group, Ltd., Class A		9,900		130,533
Fraser Papers, Inc. * (a)		4,800		7,414
Fronteer Development Group, Inc. *		14,100		48,602
Frontera Copper Corp. *		6,600		13,053
Galleon Energy, Inc., Class A *		20,050		267,006
Garda World Security Corp., Class A *		7,700		92,243
Gennum Corp.		9,858		89,779
Gluskin Sheff & Associates, Inc.		2,500		45,277
Gold Eagle Mines, Ltd. *		28,700		325,706
Golden Star Resources, Ltd. *		99,000		148,248
Grande Cache Coal Corp. *		41,200		203,323
Great Basin Gold, Ltd. *		65,400		168,766
Great Canadian Gaming Corp. *		19,450		156,802
Grey Wolf Exploration, Inc. *		8,500		18,812
Greystar Resources, Ltd. *		4,600		9,748
GSI Group, Inc. *		61,283		306,415
Guyana Goldfields, Inc. *		10,700		34,162

 

The accompanying notes are an integral part of the financial statements.

183

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Hanfeng Evergreen, Inc. *		13,500	$	123,583
Harry Winston Diamond Corp.		18,800		368,280
Heroux-Devtek, Inc. *		6,800		44,830
High River Gold Mines, Ltd. *		94,050		61,117
Highpine Oil & Gas, Ltd. *		21,142		270,796
Home Capital Group, Inc.		8,700		283,090
HudBay Minerals, Inc. *		47,312		478,556
Hydrogenics Corp. *		24,000		30,740
IAMGOLD Corp.		99,100		653,325
Imax Corp. *		1,500		10,765
Imperial Metals Corp. *		6,500		46,525
Intermap Technologies Corp., Class A *		7,800		34,894
International Forest Products, Ltd., Class A *		10,250		51,646
International Royalty Corp.		24,000		75,720
Intertape Polymer Group, Inc. *		9,300		26,276
Iteration Energy, Ltd. *		57,560		339,354
Ivanhoe Energy, Inc. *		51,200		114,281
Jean Coutu Group, Inc.		49,511		394,018
Jinshan Gold Mines, Inc. *		34,900		43,715
Kaboose, Inc. *		44,000		29,836
Kimber Resources, Inc. *		1,750		2,093
Kingsway Financial Services, Inc.		19,200		169,976
Kirkland Lake Gold, Inc. *		14,900		104,123
Labopharm, Inc. *		12,200		15,052
Lake Shore Gold, Corp. *		50,500		62,305
Laramide Resources, Ltd. *		11,900		33,622
Laurentian Bank of Canada (a)		9,000		340,742
Le Chateau, Inc.		4,700		61,085
Leon’s Furniture, Ltd.		16,274		183,155
Linamar Corp.		39,306		437,186
MacDonald Dettwiler & Associates, Ltd. *		10,200		286,749
Mahalo Energy, Ltd. *		12,900		27,336
Major Drilling Group International Company,
Inc. *		6,900		279,431
Maple Leaf Foods, Inc.		22,100		182,120
March Networks Corp. *		7,500		35,317
Martinrea International, Inc. *		21,300		146,440
Maxim Power Corp. *		10,800		52,383
MDS, Inc. *		46,100		706,392
Mega Brands, Inc. *		14,500		37,554
Mega Uranium, Ltd. *		26,600		40,834
Methanex Corp.		32,300		820,733
Migao Corp. *		6,600		47,241
Miranda Technologies, Inc. *		4,000		28,254
Mosaid Technologies, Inc.		4,400		66,178
Neo Material Technologies, Inc. *		15,700		44,802
Norbord, Inc. (a)		26,000		114,499
North American Palladium, Ltd. *		12,650		53,612
Northbridge Financial Corp.		8,900		239,725
Northgate Minerals Corp. *		99,695		154,923
Nova Chemicals Corp.		29,069		843,215
NuVista Energy, Ltd. *		23,597		333,354
Oncolytics Biotech, Inc. *		10,923		19,237
Open Text Corp. *		15,789		561,344
Orvana Minerals, Corp. *		48,020		28,040
Paladin Labs, Inc. *		3,300		33,224

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Pan American Silver Corp. *		12,600	$	338,199
Paramount Resources, Ltd. *		12,700		183,957
Pason Systems, Inc.		15,700		228,891
Patheon, Inc. *		21,400		69,936
Petaquilla Minerals Company, Ltd. *		30,600		34,006
Petrolifera Petroleum, Ltd. *		7,550		36,619
Platinum Group Metals, Ltd. *		11,200		28,691
Points International, Ltd. *		16,500		12,587
Polymet Mining Corp. *		35,100		115,700
ProEx Energy, Ltd. *		14,100		269,571
ProspEx Resources, Ltd. *		8,365		24,343
Pulse Data, Inc. *		15,318		40,683
Q9 Networks, Inc. *		5,500		86,815
QLT, Inc. *		24,600		92,673
Quadra Mining, Ltd. *		19,900		317,673
Quebecor World, Inc. *		21,545		2,232
Quebecor, Inc.		14,800		394,880
Quest Capital Corp.		50,300		81,481
Reitman’s Canada, Ltd., Class A		15,317		235,857
Resin Systems, Inc. *		36,820		27,742
Resverlogix Corp. *		5,300		44,275
Richelieu Hardware, Ltd.		5,700		102,533
Ritchie Bros. Auctioneers, Inc.		14,700		391,797
Rock Energy, Inc. *		8,373		35,407
RONA, Inc. * (a)		37,896		481,820
Rothmans, Inc. (a)		18,600		522,019
Rubicon Minerals Corp. *		21,100		36,564
Russel Metals, Inc.		19,915		575,993
Samuel Manu-Tech, Inc.		3,200		33,121
Savanna Energy Services Corp.		22,400		423,191
Saxon Energy Services, Inc. *		23,758		156,626
Sceptre Investment Counsel, Ltd. (a)		7,600		62,987
Scorpio Mining Corp. *		22,600		18,943
Semafo, Inc. *		42,000		51,818
ShawCor, Ltd., Class A		15,000		416,604
Shore Gold, Inc. *		64,900		91,073
Sierra Wireless, Inc. *		9,350		119,583
Silver Standard Resources, Inc. *		16,400		416,564
Silvercorp Metals, Inc.		38,694		161,802
Softchoice Corp.		2,000		20,964
Stantec, Inc. *		12,500		361,415
Starfield Resources, Inc. *		52,500		43,511
Stella-Jones, Inc.		2,100		59,135
Storm Cat Energy Corp. *		2,400		1,469
Storm Exploration, Inc. *		9,200		141,145
Stornoway Diamond Corp. *		44,100		12,252
SunOpta, Inc. *		17,900		118,007
Suramina Resources, Inc. *		4,000		4,144
SXC Health Solutions Corp. *		4,200		64,119
Tanzanian Royalty Exploration Corp. *		17,900		74,007
Taseko Mines, Ltd. *		39,900		121,376
Teal Exploration & Mining, Inc. *		4,000		13,562
Tembec, Inc. *		7,330		19,122
The Churchill Corp. *		2,800		42,193
Theratechnologies, Inc. *		12,198		65,941
Thompson Creek Metals Company, Inc. *		32,300		506,494

 

The accompanying notes are an integral part of the financial statements.

184

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Timminco, Ltd. *		12,400	$	174,006
TLC Vision Corp. *		13,700		13,935
Toromont Industries, Ltd.		19,900		609,107
Torstar Corp., Class B (a)		19,400		279,544
Transat A.T., Inc., Class A		2,100		39,081
Transcontinental, Inc., Class A		24,200		376,060
Transglobe Energy Corp. *		16,600		63,161
Transition Therapeutics, Inc. *		4,900		43,102
Treasury Metals, Inc. *		3,131		2,123
Trican Well Service, Ltd. *		18,100		365,477
Tristar Oil & Gas, Ltd. *		33,907		679,864
Tundra Semiconductor Corp. *		2,300		8,556
Turnkey E&P, Inc. *		1,100		2,538
Uex Corp. *		35,200		102,769
Uni-Select, Inc.		4,200		94,933
Uranium Participation Corp. *		23,300		189,595
Ur-Energy, Inc. *		10,200		14,280
UTS Energy Corp. *		93,500		361,038
Vecima Networks, Inc. *		5,621		25,940
Vector Aerospace Corp. *		2,100		12,757
Verenex Energy, Inc. *		8,500		65,403
Vero Energy, Inc. *		6,700		59,314
Viterra, Inc. *		37,400		431,484
Vitran Corp., Inc. *		300		5,179
Wesdome Gold Mines, Ltd. *		17,100		14,977
West Energy, Ltd. *		23,625		81,880
West Fraser Timber Company, Ltd.		12,100		446,713
Western Canadian Coal Corp. *		25,500		152,260
Western Financial Group, Inc.		10,800		33,973
Wi-LAN, Inc. *		27,400		52,901
Winpak, Ltd.		6,900		29,568
Xantrex Technology, Inc. *		9,700		136,118
Xceed Mortgage Corp.		1,800		1,814
Xtreme Coil Drilling Corp. *		6,548		53,960
Yukon-Nevada Gold Corp. *		47,100		10,203
Zarlink Semiconductor, Inc. *		33,700		23,169
ZCL Composites, Inc.		5,200		41,089
				40,929,293
Denmark - 0.95%
ALK-Abello A/S *		1,570		194,475
Alm. Brand Skadesforsikring A/S *		3,700		115,498
Amagerbanken A/S		3,400		77,383
Ambu A/S		800		12,704
Auriga Industries		5,800		218,195
Bang & Olufsen AS, Series B		2,100		95,621
Bavarian Nordic A/S *		1,260		52,022
BoConcept Holding A/S		75		4,048
Bonusbanken A/S		7,500		17,999
Brodrene Hartmann A/S *		900		16,464
Brondbyernes IF Fodbold A/S *		1,244		16,517
Capinordic A/S *		9,300		20,615
Dalhoff Larsen & Horneman A/S, Series B		2,500		26,551
Dantherm A/S (a)		800		16,644
Det Ostasiatiske Kompagni AS		4,950		299,418
DFDS A/S		745		78,948
DiBa Bank A/S		550		15,705

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Denmark (continued)
Fionia Bank A/S		1,250	$	19,754
Fluegger A/S, Series B		300		24,780
Forstaedernes Bank A/S		2,800		41,506
Greentech Energy Systems *		13,500		179,002
Gronlandsbanken		20		1,987
H&H International A/S		280		45,388
Harboes Bryggeri A/S		1,900		44,787
IC Companys A/S		3,450		99,008
Jeudan A/S		650		67,638
Maconomy Corp. *		1,500		3,069
NeuroSearch A/S *		4,338		229,731
Nordjyske Bank A/S		1,190		29,036
Ostjydsk Bank A/S		190		24,353
Parken Sport & Entertainment A/S * (a)		610		151,973
PER Aarsleff A/S		600		72,496
Pharmexa A/S *		10,600		5,421
Ringkjoebing Bank A/S		620		46,351
Ringkjoebing Landbobank A/S		1,455		176,629
Roskilde Bank A/S		495		97
Royal Unibrew A/S		1,200		103,635
Sanistal A/S, Series B		250		18,176
Satair A/S		1,000		41,488
Schouw & Company A/S, Series B		4,900		163,181
SimCorp A/S		1,630		239,798
Sjaelso Gruppen A/S		5,500		90,990
Solar Holdings A/S		900		67,334
Spar Nord Bank A/S		16,850		250,159
Sparbank Vest A/S		275		12,253
Thrane & Thrane A/S		800		47,248
TK Development A/S *		12,600		144,671
TopoTarget A/S *		15,000		34,197
Vestjysk Bank A/S		2,050		79,687
				3,834,630
Finland - 2.51%
Ahlstrom OYJ		995		21,161
Aldata Solution Oyj *		13,900		22,184
Alma Media Oyj		19,550		257,956
Amer Sports Oyj, A Shares		41,993		565,468
Aspo Oyj		4,950		41,189
Atria PLC		3,580		73,435
Cargotec Corp. Oyj, B Shares		13,212		405,038
Comptel PLC		2,692		5,513
Cramo Oyj, Series B		5,674		68,526
Digia PLC		2,622		12,145
Elcoteq SE, A Shares *		5,952		38,102
Elektrobit Corp.		9,773		12,319
Elisa Oyj, Class A		45,146		963,047
Etteplan Oyj		276		1,903
Finnair Oyj		21,089		166,257
Finnlines Oyj		6,400		125,837
Fiskars Oyj Abp, Series A		9,978		148,907
F-Secure Oyj		15,418		58,366
HK Ruokatalo Oyj, Series A		6,090		57,430
Huhtamaki Oyj		45,417		457,316
Ilkka-Yhtyma Oyj		1,073		16,845
KCI Konecranes Oyj		51,234		1,691,023

 

The accompanying notes are an integral part of the financial statements.

185

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Finland (continued)
Kemira Oyj		22,162	$	276,992
Lannen Tehtaat Oyj		1,246		29,153
Lassila & Tikanoja Oyj		9,284		210,225
Lemminkainen Oyj		2,350		77,338
M-real Oyj, Series B		51,438		93,246
OKO Bank PLC, Series A		31,602		510,019
Olvi Oyj, Series A		2,000		63,054
Oriola-KD Oyj		22,667		79,667
Orion Oyj, Series A		6,429		121,037
Orion Oyj, Series B		25,593		481,719
Outotec Oyj		10,773		489,392
PKC Group Oyj		5,756		68,303
Ponsse Oyj		2,415		37,447
Poyry Oyj		10,747		260,793
Raisio Oyj		33,851		85,893
Ramirent Oyj		21,264		147,815
Rapala VMC Oyj		617		4,087
Ruukki Group Oyj		9,162		25,404
SanomaWSOY Oyj		22,331		443,172
Scanfil Oyj		3,082		10,964
Stockmann Oyj Abp, Series A		1,949		57,462
Stockmann Oyj Abp, Series B (a)		9,139		257,633
Talentum OYJ		2,462		10,310
Tecnomen Oyj		21,184		32,880
Teleste Oyj		1,377		9,065
Uponor Oyj		16,275		223,780
Vacon Oyj		2,844		118,005
Vaisala Oyj, Series A		2,677		109,100
YIT Oyj		38,286		595,540
				10,139,462
France - 5.19%
Ales Groupe SA		1,081		26,088
Alten SA *		4,916		190,653
Altran Technologies SA *		29,767		260,029
April Group SA		4,250		233,816
Archos SA *		1,721		17,096
Arkema		22,415		1,081,206
Assystem SA		4,109		64,431
Atos Origin SA		21,713		1,166,920
Audika SA		1,625		72,097
Avanquest Software SA *		1,218		6,832
Bacou Dalloz SA		1,599		192,525
Beneteau SA		11,605		196,887
BioMerieux SA		158		17,188
Boiron SA		1,874		53,523
Bonduelle SCA		961		91,353
Bongrain SA		2,450		197,417
Bourbon SA		12,559		715,527
Bull SA *		11,140		40,189
Canal Plus SA		16,823		173,308
Carbone Lorraine SA		3,232		184,008
Cegedim SA		323		28,161
Cegid SA		1,808		44,336
Clarins SA		3,528		286,741
Club Mediterranee SA *		3,915		176,592
Compagnie Plastic Omnium SA		3,169		94,239

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
France (continued)
Delachaux SA		2,118	$	212,642
Electricite de Strasbourg SA		1,094		195,348
Esso SAF		925		185,669
Etablissements Maurel et Prom SA		27,487		568,176
Etam Developpement SA		1,713		46,743
Euler Hermes SA		2,690		215,283
Euro Disney SCA *		2,261		27,034
Exel Industries		185		10,201
Faurecia SA *		2,085		79,154
Fimalac		3,983		311,174
Fleury Michon SA		344		14,813
Gaumont SA		589		50,395
Gemalto NV *		22,584		965,272
GFI Informatique SA		9,954		62,216
GIFI		620		38,202
GL Events SA		2,064		54,465
Groupe Crit SA		1,884		49,410
Groupe Open SA		2,447		35,321
Groupe Steria SCA		7,290		195,866
Guerbet SA		558		100,518
Guyenne & Gascogne SA		1,677		200,046
Havas SA		101,280		392,616
Infogrames Entertainment SA *		2,320		45,744
Ingenico SA		10,376		303,191
International Metal Service SA		4,726		106,553
Ipsos SA		7,062		237,433
Korian		2,594		83,340
Lafuma SA		424		16,414
Laurent-Perrier SA		1,018		141,699
Lectra SA *		6,134		26,997
Lisi SA		1,002		80,793
LVL Medical Groupe SA *		3,125		48,861
M6-Metropole Television		15,243		339,425
Maisons France Confort SA		709		21,933
Manitou BF SA		3,693		99,582
Manutan SA		1,304		84,056
Montupet SA		553		5,468
Mr. Bricolage SA		1,756		35,166
Naturex		306		12,748
Neopost SA		8,197		854,583
Nexans SA		6,683		842,131
Nexity SA		7,635		176,514
Norbert Dentressangle SA		1,107		90,945
NRJ Group		8,402		90,648
Oberthur Card Systems SA		10,817		76,747
Orco Property Group SA		1,119		41,758
Orpea SA *		4,196		243,457
Parrot SA *		1,593		30,469
Penauille Polyservices SA		28,582		201,753
Pierre & Vacances SA		1,327		116,827
Pinguely-Haulotte SA		2,723		38,741
Radiall SA		349		37,535
Rallye SA		5,515		250,512
Remy Cointreau SA *		5,800		305,663
Rexel SA		3,300		49,923
Rhodia SA		19,787		384,758

 

The accompanying notes are an integral part of the financial statements.

186

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount			Value
COMMON STOCKS (continued)
France (continued)
Robertet SA		258		$	32,929
Rubis SA		2,384			190,445
Saft Groupe SA *		3,605			156,869
Samse SA		317			27,404
SEB SA		7,767			421,477
Sechilienne-Sidec SA		4,497			329,161
Silicon-On-Insulator Technologies SA *		19,957			146,442
SOC MAR TUNNEL PRADO CAR		219			7,667
Societe BIC SA		6,466			390,109
Societe des Bains de Mer & du Cercle des
Etrangers a Monaco		93			89,963
Societe Industrielle D’Aviations Latecoere SA *		552			6,374
Somfy SA		554			125,803
Sopra Group SA		2,126			166,741
Spir Communication SA		493			25,573
SR Teleperformance SA		15,953			569,746
Stallergenes SA		2,320			191,816
Stef-TFE Group		3,091			190,358
Sucriere de Pithiviers-Le-Vieil SA		73			57,441
Synergie SA		1,224			30,164
Tessi SA		206			10,061
Theolia SA *		7,086	��		150,115
Toupargel-Agrigel SA		936			19,995
Trigano SA		2,853			41,338
UbiSoft Entertainment SA *		5,766			537,851
Union Financiere de France Banque SA		725			33,383
Valeo SA		24,335			867,686
Viel & Compagnie SA		7,076			39,744
Vilmorin & Compagnie SA		1,096			166,943
Virbac SA		1,389			121,951
VM Materiaux SA		579			42,157
Vranken-Pommery Monopole Group		721			44,413
Zodiac SA		12,396			621,581
					20,997,793
Germany - 6.02%
Aareal Bank AG		9,029			216,458
Adlink Internet Media AG *		4,151			44,371
ADVA AG Optical Networking *		10,567			27,669
Aixtron AG		24,075			253,065
Altana AG		22,190			353,986
Amadeus Fire AG		724			13,202
Augusta Technologie AG *		2,266			47,563
Baader Wertpapierhandelsbank AG		12,358			55,783
Balda AG *		3,189			7,693
Bauer AG		2,584			216,959
Beate Uhse AG *		8,223			13,136
Bechtle AG		3,518			105,314
Bertrandt AG		519			19,796
Bilfinger Berger AG		11,881			835,451
Biotest AG		1,095			106,751
Boewe Systec AG		1,342			34,336
Borussia Dortmund GMBH & Company KGAA *		20,750			51,141
Carl Zeiss Meditec AG		11,704			195,922
Cenit AG		2,140			13,003
Centrotec Sustainable AG *		2,162			45,515
Cewe Color Holding AG		1,320			44,152

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
ComBOTS AG		2,445	$	30,425
Comdirect Bank AG		9,025		92,126
ComputerLinks AG *		2,468		55,795
Conergy AG *		1,920		28,067
CropEnergies AG *		4,847		21,476
CTS Eventim AG		2,979		101,834
Curanum AG		4,385		25,028
D Logistics AG *		17,468		33,288
DAB Bank AG		4,358		30,081
Data Modul AG		850		16,160
Demag Cranes AG		4,632		252,231
Deutsche Wohnen AG *		2,936		42,828
Deutz AG		22,110		137,557
Douglas Holding AG		10,446		464,767
Drillisch AG		6,749		40,001
Duerr AG		2,766		93,601
DVB Bank AG		110		4,311
Elexis AG		1,550		36,280
ElringKlinger AG		6,772		156,071
EM.TV AG *		17,451		63,234
Epcos AG		22,958		592,640
Escada AG *		2,739		51,205
Evotec AG *		8,820		17,935
Fielmann AG		3,660		278,188
Freenet AG *		21,589		314,032
Fuchs Petrolub AG		1,810		152,065
Gerresheimer AG		8,874		446,228
Gerry Weber International AG		3,420		95,631
Gesco AG		829		63,100
Get Nice Holdings, Ltd.		488,000		22,909
GFK AG		2,880		106,330
GFT Technologies AG *		9,511		35,195
Gildemeister AG		8,135		195,985
GPC Biotech AG *		5,604		12,395
Grammer AG		1,438		31,889
Grenkeleasing AG		2,860		96,310
Hawesko Holding AG		1,432		47,200
Heidelberger Druckmaschinen AG		19,146		391,678
IDS Scheer AG		3,889		51,799
Indus Holding AG		2,245		61,444
Interseroh AG		1,177		95,432
Intershop Communications AG *		2,654		8,689
IVG Immobilien AG		28,216		518,324
IWKA AG		6,306		146,080
Jenoptik AG *		20,577		144,603
Kloeckner & Company AG		13,614		542,732
Kontron AG		12,033		153,150
Krones AG		5,868		429,316
KSB AG		139		96,320
KWS Saat AG		763		132,588
Lanxess AG		24,378		937,373
Leoni AG		8,933		396,321
Loewe AG		2,108		41,374
Manz Automation AG *		538		112,799
MasterFlex AG		1,234		20,531
Mediclin AG *		8,648		36,792

 

The accompanying notes are an integral part of the financial statements.

187

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
Medigene AG *		7,224	$	60,729
Medion AG		7,729		134,953
MLP AG		13,383		271,481
Mologen AG *		1,346		13,687
Morphosys AG *		1,536		111,729
MTU Aero Engines Holding AG		13,746		478,043
Muehlbauer Holding AG & Co KGaA		712		24,077
MVV Energie AG		7,457		359,722
Nemetschek AG		1,701		40,202
Norddeutsche Affinerie AG		13,472		623,560
Nordex AG *		8,560		309,788
OHB Technology AG		2,846		37,160
Pfeiffer Vacuum Technology AG		2,709		241,536
Pfleiderer AG		15,830		237,495
Plambeck Neue Energien AG *		8,720		34,362
Praktiker Bau- und Heimwerkermaerkte AG		19,355		289,238
Premiere AG *		28,994		537,484
PSI AG Gesellschaft Fuer Produkte und Systeme der Informationstechnologie *		867		5,974
PVA TePla AG *		1,400		14,404
Qiagen AG *		50,599		1,073,107
QSC AG *		22,823		68,411
R. Stahl AG		1,092		47,942
Rational AG		852		149,633
REpower Systems AG *		2,414		794,281
Rheinmetall AG		11,063		704,221
Rhoen-Klinikum AG		23,525		786,776
Roth & Rau AG *		692		35,536
Sartorius AG		997		27,044
Schlott Gruppe AG		1,862		36,823
SGL Carbon AG *		12,140		728,571
SHB Stuttgarter Finanz & Beteiligungs AG		951		34,501
Singulus Technologies AG *		9,728		96,467
Sixt AG		2,811		84,769
Software AG		5,638		412,413
Solar Millennium AG *		2,631		101,131
Solon AG Fuer Solartechnik *		2,111		129,176
Stada Arzneimittel AG		16,578		902,824
Stratec Biomedical Systems AG		1,403		40,028
Suedzucker AG		20,965		355,360
Suess MicroTec AG *		4,728		26,990
Symrise AG		29,014		499,835
Takkt AG		6,384		100,681
Technotrans AG		258		2,902
Utimaco Safeware AG		1,426		30,190
Versatel AG *		3,529		82,531
Vivacon AG		3,362		48,157
Vossloh AG		7,123		926,344
Wacker Construction Equipment AG		1,409		14,338
Washtec AG *		1,640		24,033
Wincor Nixdorf AG		8,582		631,680
Wire Card AG *		15,046		182,525
Wuerttembergische Lebensversicherung AG		1,339		52,076
				24,359,929
Greece - 1.80%
Agricultural Bank of Greece		63,737		219,225

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Greece (continued)
Alapis Holding Industrial & Commercial SA		230,470	$	574,992
Alfa-Beta Vassilopoulos SA		1,130		60,388
Anek Lines SA		43,170		118,645
Aspis Bank SA		10,270		27,684
Astir Palace Hotel SA *		6,080		39,913
Athens Medical Center SA		8,110		23,750
Athens Stock Exchange SA (ASE)		21,844		257,819
Athens Water Supply and Sewage Company SA		12,066		161,655
Autohellas SA		8,930		31,036
Bank of Attica SA		5,492		27,892
Bank of Greece SA		5,268		479,721
Biossol SA *		37,279		27,648
C. Rokas SA		3,530		82,249
Commercial Bank of Greece SA *		8,531		163,103
Diagnostic & Therapeutic Center of Athens Hygeia SA		20,827		103,318
Duty Free Shops		2,936		46,348
Euromedica SA		1,306		10,185
Forthnet SA *		14,320		51,850
Fourlis SA		13,622		288,396
Frigoglass SA		7,974		147,206
GEK Group of Companies SA		10,265		103,088
Geniki Bank SA *		13,528		71,005
Greek Postal Savings Bank		29,589		397,306
Halcor SA		19,210		44,027
Hellenic Technodomiki Tev SA		47,275		463,663
Heracles General Cement SA		5,225		93,945
Iaso SA		13,290		134,314
Inform P Lykos SA		6,596		33,601
Intracom Holdings SA *		28,550		68,125
Intracom SA Technical & Steel Constructions		26,335		31,357
J&P-Avax SA		12,040		67,579
Lambrakis Press SA		14,105		65,372
Lavipharm SA *		12,350		35,887
Loulis Mills SA *		9,563		38,775
Maritime Company of Lesvos SA *		26,037		18,518
Metka SA		7,830		145,380
Michaniki SA		17,800		79,070
Minoan Lines Shipping SA		16,450		100,652
Motodynamic SA		321		1,801
Motor Oil Hellas Corinth Refineries SA		12,810		243,253
Mytilineos Holdings SA		29,457		338,806
Nireus Aquaculture SA		11,075		29,029
Piraeus Port Authority		2,275		65,985
Proton Bank SA		16,640		158,085
S&B Industrial Minerals SA		3,540		48,324
Sarantis SA		3,820		54,213
Sfakianakis SA		3,897		31,923
Sidenor Steel Products Manufacturing Company SA		14,524		177,191
Singularlogic SA *		10,414		40,902
Teletypos SA Mega Channel		8,637		80,650
Terna SA		6,110		56,166
Thessaloniki Port Authority SA		418		16,930
Titan Cement Company SA		19,512		722,583

 

The accompanying notes are an integral part of the financial statements.

188

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Greece (continued)
Viohalco SA		32,346	$	260,117
				7,260,645
Hong Kong - 2.07%
Alco Holdings, Ltd.		94,000		19,271
Allied Group, Ltd.		34,000		113,759
Allied Properties HK, Ltd.		1,064,000		173,550
Asia Financial Holdings, Ltd.		98,000		33,998
Asia Satellite Telecom Holdings Company, Ltd.		300,720		426,312
Asia Standard Hotel Group, Ltd.		3,610,000		25,756
Asia Standard International Group, Ltd.		2,374,756		29,034
Asian Union New Media Group, Ltd. *		2,550,000		25,924
Associated International Hotels *		52,000		113,784
Burwill Holdings, Ltd. * (a)		398,000		8,504
C C Land Holdings, Ltd.		297,000		125,248
C Y Foundation Group, Ltd. *		605,000		18,235
Cafe de Coral Holdings, Ltd.		78,000		149,940
Capital Estate, Ltd. *		3,465,000		19,056
Capital Strategic Investment, Ltd.		880,000		23,662
Century City International Holdings, Ltd. (a)		3,496,000		32,909
Champion Technology Holdings, Ltd.		323,553		33,782
Chen Hsong Holdings, Ltd.		74,000		22,381
Chevalier International Holdings, Ltd.		32,000		28,607
China Grand Forestry Resources Group, Ltd. *		1,420,000		91,939
China Infrastructure Investment, Ltd. *		790,000		23,178
China Metal International Holdings, Inc.		108,000		22,141
China Renji Medical Group, Ltd. *		3,286,000		24,679
China Sci-Tech Holdings, Ltd. *		1,096,000		10,429
China Seven Star Shopping, Ltd. *		850,000		8,346
China Solar Energy Holdings, Ltd. *		540,000		9,278
China Timber Resources Group, Ltd.		2,100,000		18,937
China Yunnan Tin Minerals Group Company, Ltd. *		772,000		24,595
China Zenith Chemical Group, Ltd. *		350,000		19,801
China Zirconium, Ltd.		23,600		19,751
Chinese People Gas Holdings Company, Ltd. * (a)		654,000		8,933
Chong Hing Bank, Ltd.		43,000		104,335
Chow Sang Sang Holdings, Ltd.		108,000		94,796
Chuang’s China Investments, Ltd.		271,000		12,334
Chuang’s Consortium International, Ltd.		156,000		12,670
Clear Media, Ltd. * (a)		37,000		24,233
Coastal Greenland, Ltd.		240,000		12,911
COL Capital, Ltd.		28,000		11,789
Coslight Technology International Group, Ltd.		52,000		25,894
Cross-Harbour Holdings, Ltd.		32,000		27,038
Dickson Concepts International, Ltd.		37,000		21,660
EganaGoldpfeil Holdings, Ltd. *		131,750		11,142
Emperor Capital Group, Ltd.		33,600		1,775
Emperor Entertainment Hotel, Ltd.		165,000		22,541
Emperor International Holdings, Ltd.		330,000		92,068
eSun Holdings, Ltd. * (a)		195,000		36,513
Far East Consortium International, Ltd. (a)		330,750		72,074
First Natural Foods Holdings, Ltd.		375,000		32,997
First Sign International Holdings, Ltd.		200,000		46,570
Fong’s Industries Company, Ltd.		66,000		21,649
Fubon Bank, Ltd.		110,000		59,833
Fushan International Energy Group, Ltd. *		344,000		186,526

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Genesis Energy Holdings, Ltd. *		980,000	$	25,223
Giordano International, Ltd.		1,113,708		404,087
Global Green Tech Group, Ltd. *		204,000		22,810
Glorious Sun Enterprises, Ltd.		88,000		41,295
Golden Resorts Group, Ltd.		500,000		13,052
Goldlion Holdings, Ltd.		160,000		24,470
Hang Fung Gold Technology, Ltd.		310,000		77,702
Hanny Holdings, Ltd.		744,000		6,898
Harbour Centre Development, Ltd.		25,000		34,214
Heng Tai Consumables Group, Ltd. *		325,000		37,686
Hi Sun Technology China, Ltd. *		375,000		67,690
HKR International, Ltd.		257,600		122,386
Hon Kwok Land Investment Company, Ltd.		104,000		30,448
Hongkong Chinese, Ltd.		402,300		45,112
Hung Hing Printing Group, Ltd.		134,216		39,494
Hutchison Harbour Ring, Ltd.		1,420,000		117,826
I.T., Ltd.		242,000		37,018
i-Cable Communications, Ltd.		179,000		20,183
Imagi International Holdings, Ltd. *		140,000		11,670
Integrated Distribution Services Group, Ltd.		55,000		78,961
Interchina Holdings Company *		3,585,000		16,412
International Luk Fook Holdings, Ltd.		62,000		32,361
ITC Corp., Ltd.		678,559		16,074
Jinhui Holdings, Ltd.		42,000		22,574
K Wah International Holdings, Ltd.		367,227		112,255
Kantone Holdings, Ltd.		752,267		50,993
Karl Thomson Holdings, Ltd. *		92,000		16,244
Keck Seng Investments, Ltd.		61,000		28,866
Lai Fung Holdings, Ltd.		974,000		18,213
Lai Sun Development Company, Ltd. *		2,414,000		29,878
Lai Sun Garment International, Ltd. *		609,000		24,794
Lee & Man Paper Manufacturing, Ltd.		113,600		113,440
Lippo, Ltd.		31,250		15,153
Liu Chong Hing Investment, Ltd.		74,000		74,314
Luks Group Vietnam Holdings Company, Ltd.		76,000		34,271
Lung Kee Holdings, Ltd.		76,000		36,735
Macau Success, Ltd. *		276,000		31,766
Magnificent Estates, Ltd.		1,130,000		19,919
Matsunichi Communication Holdings, Ltd. *		145,000		104,041
Media Chinese International, Ltd.		30,000		6,919
Melco International Development		210,000		124,319
Midland Holdings, Ltd.		132,000		66,894
Miramar Hotel & Investment Company, Ltd.		8,000		9,937
Nam Tai Electronic & Electrical Products, Ltd.		181,000		26,985
Nan Hai Corp., Ltd. * (a)		9,850,000		70,238
Natural Beauty Bio-Technology, Ltd.		280,000		59,595
Next Media, Ltd.		150,000		46,159
Norstar Founders Group, Ltd.		168,000		32,164
Oriental Press Group, Ltd.		202,000		26,015
Oriental Watch Holdings, Ltd.		128,000		38,354
Pacific Andes International Holdings, Ltd. (a)		302,611		40,886
Pacific Century Premium Developments, Ltd.		440,000		156,562
Paliburg Holdings, Ltd.		1,333,800		25,506
Peace Mark Holdings, Ltd.		180,000		34,595
Pico Far East Holdings, Ltd.		200,000		23,077
Playmates Holdings, Ltd.		38,400		15,320

 

The accompanying notes are an integral part of the financial statements.

189

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Prime Success International Group, Ltd.		256,000	$	131,198
Public Financial Holdings, Ltd.		52,000		28,638
PYI Corp., Ltd.		358,801		34,840
Qin Jia Yuan Media Services Company, Ltd.		64,000		31,577
Regal Hotels International Holdings, Ltd.		1,572,000		60,184
Road King Infrastructure, Ltd.		78,000		60,560
Sa Sa International Holdings, Ltd.		112,000		43,906
SEA Holdings, Ltd.		52,000		29,316
Shanghai Zendai Property, Ltd. *		525,000		10,519
Shaw Brothers Hong Kong, Ltd.		38,000		82,725
Shell Electric Manufacturing Company, Ltd.		102,000		31,863
Shui On Construction & Materials, Ltd.		48,000		86,309
Singamas Container Holdings, Ltd.		60,000		14,463
Sino-I Technology, Ltd. *		2,940,000		24,718
Skyfame Realty Holdings, Ltd. *		216,000		20,204
Smartone Telecommunications Holdings, Ltd.		82,000		76,488
Solomon Systech International, Ltd.		1,110,000		34,256
Sun Hung Kai & Company, Ltd.		233,000		176,083
Superb Summit International Timber Company, Ltd. *		2,380,000		30,399
Symphony Holdings, Ltd.		296,000		13,213
Tack Fat Group International, Ltd. *		200,000		10,250
TAI Cheung Holdings, Ltd.		143,000		65,577
Tai Fook Securities Group, Ltd.		94,252		27,280
TAK Sing Alliance Holdings, Ltd.		94,000		12,594
Tan Chong International, Ltd.		63,000		14,557
TCC International Holdings, Ltd. *		105,444		37,959
Techtronic Industries Company, Ltd.		291,500		271,376
Texwinca Holdings, Ltd.		423,961		363,957
Tian An China Investment, Ltd.		210,000		117,907
Titan Petrochemicals Group, Ltd. *		600,000		15,715
Tongda Group Holdings, Ltd.		740,000		14,333
Top Form International, Ltd.		226,000		17,015
Truly International Holdings, Ltd.		46,000		39,465
Upbest Group, Ltd.		158,000		11,944
USI Holding Corp.		72,000		23,764
Varitronix International, Ltd.		68,000		34,066
Vedan International Holdings, Ltd.		220,000		16,861
Victory City International Holdings, Ltd. (a)		138,502		32,818
Vitasoy International Holdings, Ltd.		196,000		93,070
VST Holdings Company, Ltd. *		182,000		24,052
VTech Holdings, Ltd.		42,000		250,605
Wai Kee Holdings, Ltd.		130,000		24,555
Wing On Company International, Ltd.		51,000		89,332
Wonson International Holdings, Ltd. *		2,300,000		19,274
Xinyi Glass Holdings Company, Ltd.		228,000		120,017
Yanion International Holdings, Ltd. *		520,000		15,559
Yau Lee Holdings, Ltd.		88,000		8,740
Yip’s Chemical Holdings, Ltd.		112,000		64,020
Yugang International, Ltd.		1,366,000		12,322
				8,367,563
India - 0.01%
HTMT Global Solutions, Ltd.		2,398		13,482
Motherson Sumi Systems, Ltd.		7,017		12,842
NIIT, Ltd.		11,250		22,750
				49,074

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Ireland - 1.48%
AER Lingus *		92,859	$	205,333
Aryzta AG *		9,086		442,519
C&C Group PLC - London Exchange		106,183		393,622
DCC PLC		29,401		711,196
DCC PLC		2,800		67,468
Dragon Oil PLC *		34,938		197,335
Dragon Oil PLC *		51,099		292,540
FBD Holdings PLC - London Exchange		5,526		116,963
FBD Holdings PLC		3,299		68,782
Fyffes PLC		106,403		54,634
Glanbia PLC		43,143		285,288
Greencore Group PLC		45,227		131,573
IFG Group PLC		17,394		39,473
Independent News & Media PLC - London Exchange		157,817		347,903
Independent News & Media PLC		42,581		92,488
Irish Continental Group PLC * (a)		5,829		161,383
Irish Life & Permanent PLC - London Exchange		93,432		873,312
Kenmare Resources PLC *		114,460		73,538
Kingspan Group PLC - London Exchange		46,873		533,892
McInerney Holdings PLC		27,705		13,459
Paddy Power PLC - London Exchange		9,114		212,519
Paddy Power PLC		7,635		178,656
United Drug PLC		85,182		493,617
				5,987,493
Italy - 3.22%
Acea SpA		9,068		159,794
Acegas-APS SpA		7,419		58,062
Actelios SpA		8,203		84,108
Aedes SpA *		6,455		9,345
Amplifon SpA		31,967		95,389
Ansaldo STS SpA		18,782		287,652
AS Roma SpA *		21,755		29,405
Astaldi SpA		11,817		92,661
Autogrill SpA (a)		31,893		396,884
Azimut Holding SpA *		33,891		296,251
Banca Finnat Euramerica SpA		35,792		42,705
Banca Generali SpA		10,115		69,838
Banca IFIS SpA		3,357		41,499
Banca Intermobiliare SpA		17,737		107,705
Banca Italease *		31,403		271,213
Banca Popolare dell’Etruria e del Lazio		23,455		231,744
Banca Profilo SpA		11,108		17,584
Banco di Desio e della Brianza SpA		15,821		136,369
Benetton Group SpA, SADR		200		4,190
Benetton Group SpA		23,853		250,187
Biesse SpA		3,083		36,714
Bonifica Ferraresi e Imprese Agricole SpA		918		46,077
Brembo SpA		12,719		145,090
Bulgari SpA		42,795		437,655
Caltagirone Editore SpA		9,281		50,113
Caltagirone SpA		7,345		53,280
Carraro SpA		4,324		28,120
Cementir SpA		24,008		142,077
CIR-Compagnie Industriali Riunite SpA		139,287		355,412

 

The accompanying notes are an integral part of the financial statements.

190

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Italy (continued)
Class Editori SpA		25,163	$	34,635
Credito Artigiano SpA		27,027		105,060
Credito Bergamasco SpA * (a)		4,262		166,843
Credito Emiliano SpA		29,293		274,902
Danieli & Company SpA		7,817		233,264
Davide Campari Milano SpA		46,001		383,981
De Longhi SpA		23,047		92,784
Digital Multimedia Technologies SpA *		2,000		63,108
ERG SpA		20,081		407,752
Ergo Previdenza SpA		5,344		28,601
Esprinet SpA		4,770		23,289
Fiera Milano SpA *		3,657		32,546
Gemina SpA *		269,900		335,293
Gewiss SpA		11,161		60,883
GranitiFiandre SpA		7,189		67,527
GreenergyCapital SpA *		175		179
Gruppo Beghelli SpA		13,844		14,778
Gruppo Coin SpA *		12,232		57,279
Gruppo Editoriale L’Espresso SpA		67,330		168,121
Guala Closures SpA *		13,409		84,057
Hera SpA		27,856		93,740
Immsi SpA		42,868		55,867
Impregilo SpA *		87,969		469,513
Indesit Company SpA		10,710		122,117
Industria Macchine Automatiche SpA		5,896		124,994
Intek SpA		70,676		57,866
Interpump SpA		16,266		140,706
Iride SpA		103,369		279,550
Italmobiliare SpA		2,854		205,779
Juventus Football Club SpA *		6,895		10,463
KME Group SpA (a)		17,570		20,050
Mariella Burani SpA		4,638		104,529
Marr SpA		5,328		44,768
Mediolanum SpA		79,468		344,684
Meliorbanca SpA		17,273		80,191
Milano Assicurazioni SpA		67,482		343,763
Mirato SpA		3,489		36,228
Mondadori (Arnoldo) Editore SpA		36,588		200,236
Navigazione Montanari SpA		17,762		80,153
Nice SpA		8,114		36,095
Panariagroup Industrie Ceramiche SpA		3,544		16,928
Permasteelisa SpA		4,223		86,541
Piccolo Credito Valtellinese Scrl		67,807		670,333
Pirelli & C Real Estate SpA		5,311		103,499
Premafin Finanziaria SpA		69,591		136,648
Recordati SpA		29,632		207,344
Reno de Medici SpA *		57,383		23,467
Risanamento SpA *		13,318		23,777
Sabaf SpA		1,389		36,179
SAES Getters SpA		2,559		53,757
Safilo Group SpA		62,514		105,591
Save SpA (a)		3,613		40,996
Snia SPA *		58,742		37,096
Societa Cattolica di Assicurazioni Scrl		17,816		843,589
Societa Partecipazioni Finanziarie SpA *		121,974		71,446
Socotherm SpA * (a)		2,703		15,882

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Italy (continued)
Sogefi SpA		14,065	$	50,792
Sol SpA		10,699		63,204
Sorin SpA *		67,066		80,609
Stefanel SpA *		25,713		12,652
Telecom Italia Media SpA *		455,979		86,210
Tiscali SpA *		92,000		204,796
Tod’s SpA		3,746		228,968
Trevi Finanziaria SpA		9,055		208,754
Vianini Lavori SpA		5,861		76,471
Vittoria Assicurazioni SpA		5,949		89,020
				13,037,846
Japan - 22.30%
A&A Material Corp.		19,000		17,391
Abilit Corp.		3,000		4,218
Achilles Corp.		54,000		77,092
Adeka Corp.		30,600		221,555
Aderans Company, Ltd.		8,200		130,733
Advan Company, Ltd.		9,300		52,542
Advanex, Inc.		12,000		19,065
Aeon Delight Company, Ltd.		4,000		84,173
Aeon Fantasy Company, Ltd.		4,780		46,388
Ahresty Corp.		6,700		48,558
AI Holdings Corp.		12,600		36,997
Aica Kogyo Company, Ltd.		16,300		143,918
Aichi Bank, Ltd.		2,600		179,019
Aichi Corp.		10,600		49,700
Aichi Machine Industry Company, Ltd.		28,000		79,386
Aichi Steel Corp.		33,000		134,913
Aichi Tokei Denki Company, Ltd.		10,000		22,729
Aida Engineering, Ltd.		23,000		103,272
Aigan Company, Ltd.		4,600		27,744
Aiphone Company, Ltd.		5,700		90,218
Airport Facilities Company, Ltd.		13,200		77,210
Aisan Industry Company, Ltd.		9,300		69,427
Akebono Brake Industry Company, Ltd. (a)		17,000		113,804
Akindo Sushiro Company, Ltd.		1,000		18,232
Akita Bank, Ltd.		64,000		246,451
Allied Telesis Holdings KK *		58,100		26,416
Aloka Company, Ltd.		5,000		62,671
Alpha Corp.		1,000		7,113
Alpha Systems, Inc.		2,600		66,268
Alpine Electronics, Inc.		14,500		146,020
Alps Logistics Company, Ltd.		2,000		22,122
Altech Corp. *		3,700		35,096
Amano Corp.		16,400		141,213
Amuse, Inc.		2,000		27,163
Ando Corp.		14,000		20,396
Anest Iwata Corp.		6,000		20,748
Anritsu Corp.		43,000		117,818
AOC Holdings, Inc.		15,000		155,809
AOI Advertising Promotion, Inc. *		3,000		16,269
AOI Electronic Company, Ltd.		1,700		18,332
AOKI Holdings, Inc.		8,200		107,959
Aomori Bank, Ltd.		47,000		180,227
Aoyama Trading Company, Ltd.		19,500		352,978
Arakawa Chemical Industries, Ltd.		3,500		37,029

 

The accompanying notes are an integral part of the financial statements.

191

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Araya Industrial Company, Ltd.		14,000	$	30,313
Arealink Company, Ltd.		70		3,227
Ariake Japan Company, Ltd.		4,900		93,375
Arisawa Manufacturing Company, Ltd.		8,200		52,141
Aronkasei Company, Ltd.		7,000		25,064
Art Corp. (a)		2,000		21,335
As One Corp.		1,900		40,544
Asahi Diamond Industrial Company, Ltd.		18,000		121,600
Asahi Kogyosha Company, Ltd.		8,000		28,493
Asahi Organic Chemicals Industry Company, Ltd.		20,000		57,540
Asahi Pretec Corp.		5,900		149,773
Asahi Tec Corp. *		74,000		41,053
Asanuma Corp.		17,000		12,681
ASATSU-DK, Inc.		8,700		225,973
Ashimori Industry Company, Ltd.		13,000		23,386
Asia Securities Printing Company, Ltd.		9,300		71,264
ASKA Pharmaceutical Company, Ltd.		5,000		46,226
Asunaro Aoki Construction Company, Ltd.		11,000		51,321
Atsugi Company, Ltd.		50,000		55,785
Autobacs Seven Company, Ltd.		9,700		269,556
Avex Group Holdings, Inc.		8,200		84,366
Awa Bank, Ltd.		68,000		359,639
Azel Corp.		17,000		8,054
Bando Chemical Industries, Ltd.		30,000		89,885
Bank of Ikeda, Ltd.		4,800		165,377
Bank of Iwate, Ltd.		4,900		277,102
Bank of Nagoya, Ltd.		47,000		255,849
Bank of Okinawa, Ltd.		6,000		210,616
Bank of Saga, Ltd.		44,000		126,674
Bank of the Ryukyus, Ltd.		13,100		104,660
Belluna Company, Ltd.		9,298		47,129
Best Denki Company, Ltd. (a)		18,000		86,097
Bookoff Corp.		3,000		19,376
BSL Corp. * (a)		27,000		3,445
Bunka Shutter Company, Ltd.		14,000		51,620
C.I. Kasei Company, Ltd.		4,000		9,613
CAC Corp.		3,400		31,514
Calsonic Kansei Corp.		50,000		166,240
Canon Electronics, Inc.		4,500		82,052
Canon Finetech, Inc.		8,600		104,197
Catena Corp *		13,500		29,182
Cawachi, Ltd.		4,400		92,957
Central Finance Company, Ltd.		26,000		54,564
Central Glass Company, Ltd.		60,000		233,859
Century Leasing System, Inc.		7,600		78,396
CFS Corp.		6,500		40,231
Chiba Kogyo Bank, Ltd. *		12,000		144,272
Chino Corp.		11,000		25,419
Chiyoda Company, Ltd.		7,400		107,986
Chofu Seisakusho Company, Ltd.		5,900		106,331
Chori Company, Ltd. *		50,000		54,441
Chubu Shiryo Company, Ltd.		6,000		38,636
Chudenko Corp.		10,300		148,310
Chuetsu Pulp & Paper Company, Ltd.		22,000		40,138
Chugai Mining Company, Ltd.		34,900		6,390

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Chugai Ro Company, Ltd.		19,000	$	90,801
Chugoku Marine Paints, Ltd.		19,000		138,333
Chukyo Bank, Ltd.		49,000		135,363
Chuo Denki Kogyo Company, Ltd. *		6,000		67,626
Chuo Gyorui Company, Ltd.		12,000		25,981
Chuo Spring Company, Ltd.		14,000		43,470
Circle K Sunkus Company, Ltd.		13,000		212,954
CKD Corp.		19,500		95,335
Clarion Company, Ltd.		51,000		72,878
Cleanup Corp.		5,000		19,007
CMK Corp.		13,700		84,527
Coca-Cola Central Japan Company, Ltd.		15		101,886
cocokara fine HOLDINGS, Inc. *		1,430		21,413
Colowide Company, Ltd.		14,000		71,674
Columbia Music Entertainment, Inc. *		29,000		15,274
Commuture Corp.		16,000		94,431
Computer Engineering & Consulting, Ltd.		2,900		25,706
COMSYS Holdings Corp.		34,000		301,119
Co-Op Chemical Company, Ltd. *		19,000		46,588
Corona Corp.		8,100		104,679
Cosel Company, Ltd.		5,600		50,376
Creed Corp (a)		25		23,441
Cross Plus, Inc.		2,000		18,148
CSK Corp.		22,798		359,679
CTI Engineering Company, Ltd.		5,500		33,296
Culture Convenience Club Company, Ltd.		33,500		208,475
Cybozu, Inc.		45		12,306
D&M Holdings, Inc.		22,000		102,059
D.G. Roland Corp.		3,000		50,900
Dai Nippon Toryo Company, Ltd.		22,000		25,029
Dai-Dan Company, Ltd.		14,000		70,895
Daido Kogyo Company, Ltd.		11,000		22,690
Daido Metal Company, Ltd. (a)		12,000		49,138
Daidoh, Ltd.		7,600		76,802
Daiei, Inc. *		19,650		155,336
Daifuku Company, Ltd.		22,000		180,072
Daihen Corp.		38,000		147,178
Daiho Corp.		14,000		9,811
Daiichi Chuo Kisen Kaisha		7,000		41,650
Daiichi Jitsugyo Company, Ltd.		17,000		67,918
Daiichi Kigenso Kagaku-Kogyo Company, Ltd. *		1,100		17,214
Dai-Ichi Kogyo Seiyaku Company, Ltd. *		10,000		20,533
Daiken Corp.		23,000		43,463
Daiki Aluminium Industry Company, Ltd. *		9,000		23,568
Daiko Clearing Services Corp.		3,000		17,700
Daikoku Denki Company, Ltd.		3,200		38,015
Daikyo, Inc.		66,144		93,408
Daimei Telecom Engineering Corp.		13,000		101,154
Dainichi Company, Ltd.		3,800		19,749
Dainichiseika Color & Chemicals Manufacturing Company, Ltd.		21,000		71,649
Dainippon Screen Manufacturing Company, Ltd.		67,000		283,874
Daio Paper Corp.		25,000		215,600
Daisan Bank, Ltd.		42,000		140,944
Daiseki Company, Ltd.		7,000		226,541
Daiso Company, Ltd.		25,000		73,465

 

The accompanying notes are an integral part of the financial statements.

192

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
		Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Daisyo Corp.			4,800	$	52,148
Daito Bank, Ltd.			19,000		15,238
Daiwa Industries, Ltd.			13,000		45,428
Daiwa Seiko, Inc.			18,000		28,550
Daiwabo Company, Ltd.			33,000		81,245
Daiwabo Information System Company, Ltd.			5,500		94,934
Danto Holdings Corp.			12,000		14,023
DC Company, Ltd.			8,000		22,560
DCM Japan Holdings Company, Ltd.			21,720		158,519
Denki Kogyo Company, Ltd.			15,000		87,525
Denyo Company, Ltd.			7,200		57,887
Descente, Ltd.			15,000		83,179
Disco Corp.			5,200		193,386
Don Quijote Company, Ltd.	��		10,800		189,563
Doshisha Company, Ltd.			3,100		43,891
Doutor Nichires Holdings Company, Ltd.			6,893		113,451
Dream Incubator, Inc. *			26		19,742
DTS Corp.			4,800		67,083
Dwango Company, Ltd. *			33		51,553
Dydo Drinco, Inc.			3,300		94,938
Dynic Corp.			13,000		28,402
E-Access, Ltd.			1,000		585,751
Eagle Industry Company, Ltd.			5,000		24,159
Ebara Corp.			108,000		252,660
EDION Corp.			27,300		214,764
Ehime Bank, Ltd.			47,000		137,185
Eighteenth Bank, Ltd.			52,000		137,617
Eiken Chemical Company, Ltd.			4,000		31,330
Eizo Nanao Corp.			6,100		123,469
Enplas Corp.			4,400		42,483
Enshu, Ltd.			15,000		19,354
Epson Toyocom Corp.			19,000		60,834
Espec Corp.			6,900		48,346
Exedy Corp.			8,100		182,896
Ezaki Glico Company, Ltd. (a)			11,000		111,026
F&A Aqua Holdings, Inc.			3,800		24,446
Falco Biosystems, Ltd. *			1,500		10,892
Fancl Corp.			9,400		111,114
FDK Corp. *			21,000		26,773
Foster Electric Company, Ltd.			5,200		102,250
FP Corp.			3,600		97,816
France Bed Holdings Company, Ltd.			42,000		61,147
Fudo Construction Company, Ltd.			27,000		22,055
Fuji Company, Ltd.			5,700		91,103
Fuji Corp., Ltd.			5,000		10,276
Fuji Kiko Company, Ltd.			11,000		18,955
Fuji Kosan Company, Ltd. *			21,000		19,497
Fuji Kyuko Company, Ltd.			17,000		65,760
Fuji Oil Company, Ltd.			16,900		181,120
Fuji Software ABC, Inc.			8,800		157,559
Fujibo Holdings, Inc.			15,000		23,528
Fujicco Company, Ltd.			7,000		82,062
Fujikura Kasei Company, Ltd.			5,300		39,834
Fujikura Rubber, Ltd.			5,000		19,239
Fujita Corp.			5,400		5,806
Fujita Kanko, Inc.			19,000		140,302

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Fujitec Company, Ltd.		17,000	$	87,232
Fujitsu Business Systems, Ltd.		5,100		66,990
Fujitsu Frontech, Ltd.		4,000		37,674
Fujitsu General, Ltd. *		14,000		42,417
Fujiya Company, Ltd. *		40,000		48,814
Fukuda Corp.		8,000		12,778
Fukui Bank, Ltd.		67,000		210,147
Fukushima Bank, Ltd.		69,000		52,240
Fukushima Industries Corp.		3,000		25,843
Fukuyama Transporting Company, Ltd.		63,000		214,389
Fumakilla, Ltd. *		6,000		21,101
Funai Consulting Company, Ltd.		5,000		28,792
Funai Electric Company, Ltd.		6,300		135,639
Furukawa Battery Company, Ltd. *		10,000		76,953
Furukawa Company, Ltd.		73,000		123,949
Furusato Industries, Ltd.		2,700		24,577
Fuso Pharmaceutical Industries, Ltd.		25,000		72,728
Futaba Corp.		11,200		188,082
Futaba Industrial Company, Ltd. *		14,300		230,080
Future System Consulting Corp.		109		59,595
Fuyo General Lease Company, Ltd.		5,500		163,774
Gakken Company, Ltd.		23,000		61,587
Gecoss Corp.		5,500		23,660
Geo Corp.		96		93,471
Gigas K’s Denki Corp.		11,400		206,990
GMO Internet, Inc. (a)		12,600		55,739
Godo Steel, Ltd.		38,000		113,619
Goldcrest Company, Ltd.		6,300		103,188
Goldwin, Inc. * (a)		12,000		25,252
Goodwill Group, Inc. *		327		10,968
Gourmet Kineya Company, Ltd.		5,000		36,623
Green Hospital Supply, Inc.		42		22,102
GS Yuasa Corp. (a)		86,000		439,759
GSI Creos Corp. *		23,000		35,382
Gulliver International Company, Ltd.		1,130		22,132
Gun-Ei Chemical Industry Company, Ltd.		11,000		22,782
Gunze, Ltd.		63,000		266,551
Hakuto Company, Ltd.		6,800		59,960
Hakuyosha Company, Ltd.		5,000		13,075
Hankyu Department Stores		38,000		233,783
Hanwa Company, Ltd.		57,000		254,907
Happinet Corp.		1,600		23,366
Harashin Narus Holdings Company, Ltd.		3,000		30,629
Harima Chemicals, Inc.		5,000		21,478
Haruyama Trading Company, Ltd.		2,700		12,035
Hayashikane Sangyo Company, Ltd. *		28,000		24,438
Hazama Corp.		18,700		15,728
Heiwa Corp.		9,400		83,760
Heiwado Company, Ltd.		9,000		143,335
Hibiya Engineering, Ltd.		11,000		92,394
Higashi-Nippon Bank, Ltd.		40,000		128,824
Higo Bank, Ltd. *		2,000		11,551
HIS Company, Ltd.		6,400		78,869
Hitachi Cable, Ltd.		54,000		194,495
Hitachi Information Systems, Ltd.		8,500		185,122
Hitachi Kokusai Electric, Inc.		21,000		144,908

 

The accompanying notes are an integral part of the financial statements.

193

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Hitachi Maxell, Ltd.		16,400	$	183,203
Hitachi Medical Corp.		12,000		93,794
Hitachi Plant Technologies, Ltd.		25,000		77,592
Hitachi Software Engineering Company, Ltd.		3,000		60,999
Hitachi Systems & Services, Ltd.		4,000		59,841
Hitachi Tool Engineering, Ltd.		5,900		69,690
Hitachi Transport System, Ltd.		15,000		203,052
Hitachi Zosen Corp. * (a)		187,000		199,980
Hochiki Corp.		7,000		47,294
Hodogaya Chemical Company, Ltd.		25,000		55,687
Hogy Medical Company, Ltd.		3,200		153,669
Hokkaido Gas Company, Ltd.		14,000		34,417
Hokkan Holdings, Ltd.		11,000		28,601
Hokuetsu Bank, Ltd.		52,000		111,772
Hokuetsu Industries Company, Ltd. *		10,000		25,518
Hokuetsu Paper Mills, Ltd.		39,500		171,866
Hokuriku Electric Industry Company, Ltd.		12,000		19,634
Hokuto Corp.		6,000		135,476
Horiba, Ltd. *		7,200		142,111
Horipro, Inc.		3,300		32,142
Hosiden Corp.		12,100		201,321
Hosokawa Micron Corp.		10,000		46,071
Howa Machinery, Ltd.		20,000		16,890
I Metal Technology Company, Ltd.		10,000		20,622
IBJ Leasing Company, Ltd.		6,000		110,505
Ichikoh Industries, Ltd.		12,000		27,156
Ichinen Company, Ltd. *		7,400		40,060
Ichiyoshi Securities Company, Ltd.		10,600		103,566
ICOM, Inc.		3,000		70,362
IDEC Corp.		7,000		78,940
Ihara Chemical Industry Company, Ltd.		10,000		27,317
Iino Kaiun Kaisha, Ltd.		20,700		157,973
Ikegami Tsushinki Company, Ltd. *		13,000		15,886
Imasen Electric Industrial Company, Ltd.		3,900		53,239
Imperial Hotel, Ltd. *		3,800		92,798
Impress Holdings, Inc.		105		17,247
Inaba Denki Sangyo Company, Ltd.		4,800		121,538
Inaba Seisakusho Company, Ltd.		4,900		51,077
Inabata & Company, Ltd.		17,900		78,512
Inageya Company, Ltd.		6,000		49,915
Ines Corp.		14,100		65,678
Information Services International - Dentsu, Ltd.		3,400		25,601
Inui Steamship Company, Ltd.		4,900		62,412
Invoice, Inc.		2,047		17,277
Ise Chemical Corp.		6,000		32,805
Iseki & Company, Ltd. * (a)		49,000		129,545
Ishihara Sangyo Kaisha, Ltd. *		105,000		175,307
Ishii Hyoki Company, Ltd.		1,600		29,546
IT Holdings Corp. *		12,820		201,713
Itochu Enex Company, Ltd.		13,200		81,553
Itochu-Shokuhin Company, Ltd.		2,400		79,210
Itoham Foods, Inc.		41,000		213,867
Itoki Corp.		15,000		54,568
Iwasaki Electric Company, Ltd.		11,000		18,041
Iwatani International Corp.		47,000		128,277

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Iwatsu Electric Company, Ltd. *		17,000	$	18,412
Izumiya Company, Ltd.		26,000		147,320
Izutsuya Company, Ltd. *		26,000		18,458
J. Bridge Corp. *		7,000		1,597
Jalux, Inc.		2,200		29,628
Jamco Corp.		3,000		18,367
Janome Sewing Machine Company, Ltd.		73,000		45,778
Japan Aviation Electronics Industry, Ltd.		20,000		124,208
Japan Carlit Company, Ltd. *		8,200		33,959
Japan Cash Machine Company, Ltd.		6,200		53,383
Japan Digital Laboratory Company, Ltd.		7,900		96,370
Japan Foundation Engineering Company, Ltd.		7,000		15,231
Japan General Estate Company, Ltd. (a)		9,500		20,718
Japan Pulp & Paper Company, Ltd.		23,000		79,217
Japan Radio Company, Ltd.		29,000		66,106
Japan Servo Company, Ltd. *		10,000		68,773
Japan Transcity Corp., Ltd.		19,000		68,087
Japan Vilene Company, Ltd.		16,000		63,575
Japan Wool Textile Company, Ltd.		19,000		156,720
Jastec Company, Ltd. *		3,900		22,808
JBCC Holdings, Inc.		4,200		33,572
JBIS Holdings, Inc.		10,000		39,873
Jeans Mate Corp.		2,300		12,429
Jeol, Ltd.		19,000		68,347
Jidosha Buhin Kogyo Company, Ltd. *		9,000		27,134
JK Holdings Company, Ltd.		5,700		32,049
JMS Company, Ltd.		9,000		25,975
Joban Kosan Company, Ltd.		15,000		23,306
J-Oil Mills, Inc.		23,000		109,640
Joint Corp. (a)		9,800		17,153
Joshin Denki Company, Ltd.		12,000		96,785
JSP Corp.		8,200		55,692
Juki Corp.		33,000		60,719
Jyomo Company, Ltd. *		24,000		15,728
Kabuki-Za Company, Ltd.		1,000		43,184
Kadokawa Holdings, Inc.		5,400		127,153
Kaga Electronics Company, Ltd.		6,800		84,135
Kagawa Bank, Ltd.		22,000		114,073
Kagoshima Bank(The), Ltd.		32,000		211,802
Kakaku.com, Inc.		44		127,801
Kaken Pharmaceutical Company, Ltd.		23,000		206,013
Kameda Seika Company, Ltd.		4,000		54,171
Kamei Corp.		5,000		19,618
Kanaden Corp.		6,000		30,221
Kanagawa Chuo Kotsu Company, Ltd.		8,000		37,234
Kanamoto Company, Ltd.		5,000		24,080
Kandenko Company, Ltd. *		30,000		180,384
Kanematsu Corp. *		124,000		139,605
Kanematsu Electronics, Ltd.		4,500		35,447
Kanto Auto Works, Ltd.		9,800		126,192
Kanto Denka Kogyo Company, Ltd.		13,000		59,075
Kanto Natural Gas Development, Ltd.		11,000		72,213
Kanto Tsukuba Bank, Ltd.		17,200		74,859
Kasai Kogyo Company, Ltd.		8,000		22,565
Kasumi Company, Ltd.		12,000		72,825
Katakura Industries Company, Ltd.		7,900		98,530

 

The accompanying notes are an integral part of the financial statements.

194

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Kato Sangyo Company, Ltd.		7,000	$	93,694
Kato Works Company, Ltd.		10,000		28,157
Kawada Industries, Inc. *		16,000		19,137
Kawai Musical Instruments Manufacturing Company, Ltd.		16,000		18,938
Kawasaki Kinkai Kisen Kaisha, Ltd. *		5,000		17,465
Kawashima Selkon Textiles Company, Ltd. * (a)		17,000		13,930
Kawasumi Laboratories, Inc. *		4,000		21,654
Kayaba Industry Company, Ltd.		49,000		178,978
Keihin Company, Ltd.		10,000		13,877
Keihin Corp.		12,800		212,119
Keiiyu Company, Ltd.		4,400		15,045
Keiyo Company, Ltd.		14,600		72,802
Kenedix, Inc.		215		122,460
Kentucky Fried Chicken Japan, Ltd.		4,000		63,522
Kenwood Corp.		96,000		83,588
KEY Coffee, Inc.		5,800		82,718
Kikkoman Corp.		3,760		46,524
Kimura Chemical Plants Company, Ltd. * (a)		3,700		28,553
Kinki Nippon Tourist Company, Ltd.		32,000		59,530
Kinki Sharyo Company, Ltd.		7,000		34,057
Kintetsu World Express, Inc.		6,700		121,644
Kinugawa Rubber Industrial Company, Ltd.		25,000		60,056
Kioritz Corp.		22,000		48,610
Kirindo Company, Ltd.		5,100		27,784
Kishu Paper Company, Ltd. *		17,000		21,832
Kisoji Company, Ltd.		4,200		83,979
Kissei Pharmaceutical Company, Ltd.		10,000		217,543
Kitagawa Iron Works Company, Ltd.		12,000		19,467
Kita-Nippon Bank, Ltd.		2,500		77,656
Kitano Construction Corp.		12,000		24,482
Kitz Corp.		28,000		125,884
Kiyo Holdings, Inc.		196,000		304,188
Koa Corp.		10,700		61,634
Koatsu Gas Kogyo Company, Ltd.		15,000		84,384
Kobayashi Pharmaceutical Company, Ltd.		7,600		257,554
Koei Company, Ltd.		5,100		71,644
Kohnan Shoji Company, Ltd.		7,300		97,897
Koike Sanso Kogyo Company, Ltd.		9,000		26,978
Kojima Company, Ltd.		11,400		54,032
Kokuyo Company, Ltd.		27,800		224,247
Komatsu Seiren Company, Ltd.		9,000		34,862
Komatsu Wall Industry Company, Ltd.		2,100		23,792
Komeri Company, Ltd.		8,800		256,939
Komori Corp.		19,600		285,988
Konaka Company, Ltd.		4,600		18,619
Kondotec, Inc.		3,000		16,392
Konishi Company, Ltd.		3,900		34,904
Kosaido Company, Ltd.		3,800		14,231
Kose Corp.		8,400		228,386
Kosei Securities Company, Ltd.		18,000		18,981
Krosaki Harima Corp.		15,000		32,742
KRS Corp.		2,700		22,263
Kumagai Gumi Company, Ltd.		54,000		30,921
Kumiai Chemical Industry Company, Ltd.		25,000		73,283
Kura Corp. *		16		29,351

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Kurabo Industries, Ltd.		72,000	$	122,008
Kureha Corp.		38,000		213,246
Kurimoto, Ltd.		28,000		26,769
Kuroda Electric Company, Ltd.		7,600		87,667
Kyoden Company, Ltd.		7,000		9,513
Kyodo Printing Company, Ltd.		28,000		75,328
Kyodo Shiryo Company, Ltd.		24,000		27,906
Kyoei Tanker Company, Ltd. * (a)		13,000		37,845
Kyokuto Kaihatsu Kogyo Company, Ltd.		10,200		47,699
Kyokuyo Company, Ltd.		16,000		29,152
Kyoritsu Maintenance Company, Ltd.		3,100		53,419
Kyosan Electric Manufacturing Company, Ltd.		11,000		38,635
Kyoto Kimono Yuzen Company, Ltd.		24		18,106
Kyowa Exeo Corp.		23,000		224,869
Kyowa Leather Cloth Company, Ltd.		5,200		24,878
Kyudenko Corp.		14,000		90,879
Laox Company, Ltd. *		10,000		2,107
Life Corp.		11,000		167,884
Lintec Corp.		13,300		235,506
Lion Corp.		52,000		252,358
Livedoor Auto Company, Ltd. *		29,500		9,488
Lonseal Corp. *		22,000		37,791
Macnica, Inc.		3,400		42,691
Maeda Corp.		46,000		140,278
Maeda Road Construction Company, Ltd.		23,000		147,355
Maezawa Industries, Inc.		5,100		12,126
Maezawa Kasei Industries Company, Ltd.		2,000		20,504
Maezawa Kyuso Industries Company, Ltd.		3,500		62,071
Makino Milling Machine Company, Ltd.		39,000		178,382
Mandom Corp.		5,800		155,398
Mars Engineering Corp.		2,900		60,207
Marubun Corp.		7,400		46,549
Marudai Food Company, Ltd.		48,000		118,951
Maruei Department Store Company, Ltd. *		7,000		20,213
Maruetsu, Inc. *		19,000		168,013
Maruha Group, Inc.		107,815		197,908
Maruka Machinery Company, Ltd.		3,000		27,353
Marusan Securities Company, Ltd.		20,300		115,913
Maruwa Company, Ltd.		4,800		57,650
Maruyama Manufacturing Company, Inc.		10,000		19,316
Maruzen Company, Ltd., Second Section		4,000		16,321
Maruzen Company, Ltd. *		23,000		20,519
Maruzen Showa Unyu Company, Ltd.		23,000		65,625
Maspro Denkoh Corp.		4,000		32,011
Matsuda Sangyo Company, Ltd. (a)		3,520		77,754
Matsui Construction Company, Ltd.		8,000		23,677
Matsuya Company, Ltd.		8,100		144,849
Matsuya Foods Company, Ltd.		4,300		51,185
Max Company, Ltd.		11,000		105,374
Maxvalu Tokai Company, Ltd.		4,500		62,787
MEC Company, Ltd.		2,400		19,796
Megachips Corp.		5,600		83,479
Meidensha Corp.		37,000		97,957
Meiji Shipping Company, Ltd. * (a)		3,900		18,314
Meitec Corp.		10,200		281,505
Meito Sangyo Company, Ltd.		4,700		98,902

 

The accompanying notes are an integral part of the financial statements.

195

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Meiwa Corp. *		8,000	$	14,562
Meiwa Estate Company, Ltd.		5,000		19,340
Mercian Corp.		19,400		42,417
Michinoku Bank, Ltd.		54,000		130,495
Mikuni Coca-Cola Bottling Company, Ltd.		9,000		84,361
Mikuni Corp.		9,000		18,652
Milbon Company, Ltd.		3,200		68,767
Mimasu Semiconductor Industry Company, Ltd.		3,600		52,012
Minato Bank, Ltd.		77,000		114,610
Ministop Company, Ltd.		3,700		71,498
Miraca Holdings, Inc.		7,700		171,737
Misawa Homes Holdings, Inc. *		14,800		66,833
Mitani Corp.		4,000		25,883
Mito Securities Company, Ltd.		17,000		54,053
Mitsuba Corp., Ltd.		14,000		87,307
Mitsubishi Cable Industries, Ltd.		37,000		41,004
Mitsubishi Kakoki Kaisha, Ltd.		11,000		27,394
Mitsubishi Paper Mills, Ltd.		84,000		200,052
Mitsubishi Pencil Company, Ltd.		5,600		71,788
Mitsubishi Steel Manufacturing Company, Ltd.		33,000		122,854
Mitsuboshi Belting Company, Ltd.		22,000		114,296
Mitsui High-Tec, Inc.		11,100		75,796
Mitsui Home Company, Ltd.		16,000		80,583
Mitsui Knowledge Industry Company, Ltd.		253		53,747
Mitsui Matsushima Company, Ltd. *		17,000		49,826
Mitsui Mining Company, Ltd.		51,000		173,885
Mitsui Sugar Company, Ltd.		27,000		103,462
Mitsui-Soko Company, Ltd.		29,000		142,639
Mitsumura Printing Company, Ltd.		7,000		21,796
Mitsuuroko Company, Ltd.		13,000		83,078
Miura Company, Ltd.		8,200		180,100
Miyazaki Bank, Ltd.		49,000		125,522
Miyoshi Oil & Fat Company, Ltd.		14,000		20,753
Miyuki Holdings Company, Ltd.		8,000		18,933
Mizuno Corp.		27,000		135,197
Mochida Pharmaceutical Company, Ltd.		20,000		243,026
Modec, Inc.		7,400		234,469
Monex Group, Inc.		287		142,107
Mori Seiki Company, Ltd.		22,500		290,878
Morinaga & Company, Ltd.		60,000		114,278
Morinaga Milk Industry Company, Ltd.		58,000		170,474
Morita Corp.		6,000		23,951
Mory Industries, Inc.		11,000		31,736
MOS Food Services, Inc.		7,000		88,180
Moshi Moshi Hotline, Inc.		6,350		170,768
Mr. Max Corp.		7,300		24,035
Musashino Bank, Ltd. *		9,700		282,966
Mutoh Holdings Company, Ltd. *		8,000		19,178
Mutow Company, Ltd.		7,300		37,891
Nachi-Fujikoshi Corp. *		47,000		149,812
Nagano Bank, Ltd.		25,000		48,842
Nagase & Company, Ltd.		21,000		198,866
Nagatanien Company, Ltd.		8,000		63,606
Nakabayashi Company, Ltd.		14,000		24,126
Nakamuraya Company, Ltd.		12,000		54,785

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Nakayama Steel Works, Ltd.		29,000	$	93,051
NEC Fielding, Ltd.		8,400		91,721
NEC Leasing, Ltd.		6,500		82,304
NEC Mobiling, Ltd.		4,300		65,886
NEC Networks & System Integration Corp.		7,700		100,074
NEC Tokin Corp. *		11,000		36,981
Net One Systems Company, Ltd.		163		217,710
Netmarks, Inc. *		29		5,865
Neturen Company, Ltd.		9,900		73,235
New Tachikawa Aircraft Company, Ltd. *		1,400		52,594
Nice Corp.		22,000		37,464
Nichia Steel Works, Ltd.		14,000		47,770
Nichias Corp.		35,000		98,366
Nichiban Company, Ltd.		10,000		33,167
Nichicon Corp.		21,100		171,724
Nichiha Corp.		9,000		66,672
Nichii Gakkan Company, Ltd.		6,700		85,628
Nichimo Corp.		29,000		4,212
NICHIREI Corp.		54,000		308,030
Nichireki Company, Ltd.		1,000		2,704
Nidec Copal Corp.		5,700		71,147
Nidec Sankyo Corp. *		20,000		106,251
Nidec Tosok Corp.		2,800		21,825
Nifco, Inc.		11,900		256,495
Nihon Chouzai Company, Ltd. *		1,080		18,032
Nihon Dempa Kogyo Company, Ltd.		4,500		94,451
Nihon Eslead Corp.		2,000		12,370
Nihon Inter Electronics Corp.		5,000		11,171
Nihon Kagaku Sangyo Company, Ltd.		5,000		31,657
Nihon Kohden Corp.		9,700		211,496
Nihon Matai Company, Ltd. *		21,000		36,438
Nihon Nohyaku Company, Ltd. (a)		10,000		90,719
Nihon Parkerizing Company, Ltd.		14,000		195,306
Nihon Spindle Manufacturing Company, Ltd. *		15,000		32,845
Nihon Tokushu Toryo Company, Ltd.		6,000		22,924
Nihon Unisys, Ltd.		3,600		56,244
Nihon Yamamura Glass Company, Ltd.		26,000		46,881
Nikkiso Company, Ltd.		12,000		73,703
Nikko Company, Ltd.		5,000		12,507
Nippo Corp.		19,000		100,839
Nippon Beet Sugar Manufacturing Company, Ltd.		47,000		111,926
Nippon Carbide Industries Company, Inc. *		16,000		21,367
Nippon Carbon Company, Ltd.		30,000		140,371
Nippon Ceramic Company, Ltd.		6,400		69,198
Nippon Chemical Industrial Company, Ltd.		20,000		50,808
Nippon Chemi-Con Corp.		39,000		137,835
Nippon Chemiphar Company, Ltd.		5,000		22,421
Nippon Concrete Industries Company, Ltd.		15,000		19,488
Nippon Denko Company, Ltd.		21,000		180,726
Nippon Densetsu Kogyo Company, Ltd.		12,000		96,492
Nippon Denwa Shisetsu Company, Ltd.		10,000		25,408
Nippon Felt Company, Ltd.		5,000		24,385
Nippon Filcon Company, Ltd.		3,100		14,711
Nippon Fine Chemical Company, Ltd.		6,000		33,182
Nippon Flour Mills Company, Ltd.		35,000		167,316

 

The accompanying notes are an integral part of the financial statements.

196

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Nippon Formula Feed Manufacturing Company, Ltd. *		22,000	$	25,920
Nippon Gas Company, Ltd.		7,300		70,893
Nippon Hume Corp. *		10,000		26,166
Nippon Jogesuido Sekkei Company, Ltd.		28		20,904
Nippon Kanzai Company, Ltd.		3,600		96,851
Nippon Kasei Chemical Company, Ltd.		16,000		24,755
Nippon Kayaku Company, Ltd.		44,000		280,002
Nippon Kinzoku Company, Ltd.		16,000		33,698
Nippon Koei Company, Ltd.		26,000		67,235
Nippon Konpo Unyu Soko Company, Ltd.		18,000		182,292
Nippon Koshuha Steel Company, Ltd.		17,000		24,624
Nippon Light Metal Company, Ltd.		165,000		248,949
Nippon Metal Industry Company, Ltd.		30,000		71,004
Nippon Paint Company, Ltd.		62,000		222,825
Nippon Parking Development Company, Ltd.		293		9,103
Nippon Pillar Packing Company, Ltd.		4,000		19,755
Nippon Piston Ring Company, Ltd.		13,000		19,984
Nippon Road Company, Ltd.		15,000		19,273
Nippon Seiki Company, Ltd.		10,000		125,008
Nippon Seisen Company, Ltd. *		7,000		24,193
Nippon Sharyo, Ltd.		36,000		111,442
Nippon Shinyaku Company, Ltd.		14,000		174,428
Nippon Shokubai Company, Ltd.		39,000		250,112
Nippon Signal Company, Ltd.		16,100		84,930
Nippon Soda Company, Ltd.		38,000		184,984
Nippon Steel Trading Company, Ltd.		24,000		64,481
Nippon Suisan Kaisha, Ltd.		66,500		230,719
Nippon Synthetic Chemical Industry Company, Ltd.		20,000		77,818
Nippon System Development Company, Ltd.		12,500		138,215
Nippon Thompson Company, Ltd.		21,000		111,101
Nippon Valqua Industries, Ltd.		25,000		70,291
Nippon Yakin Kogyo Company, Ltd.		35,500		174,785
Nippon Yusoki Company, Ltd.		5,000		13,646
Nippon Zeon Company		51,000		205,042
Nipro Corp.		13,000		237,261
NIS Group Company, Ltd. *		37,913		46,335
Nishimatsu Construction Company, Ltd.		97,000		214,469
Nishimatsuya Chain Company, Ltd.		13,400		118,995
Nishi-Nippon Railroad Company, Ltd.		87,000		302,773
Nissan Shatai Company, Ltd.		26,000		193,581
Nissei Corp.		6,000		57,850
Nissei Plastic Industrial Company, Ltd.		4,000		14,991
Nissen Company, Ltd.		12,600		50,086
Nissha Printing Company, Ltd.		3,000		162,022
Nisshin Fudosan Company, Ltd.		3,000		9,874
Nisshin Oillio Group, Ltd.		37,000		205,055
Nissho Electronics Corp. *		7,700		41,185
Nissin Corp.		26,000		75,004
Nissin Electric Company, Ltd.		16,000		69,990
Nissin Kogyo Company, Ltd.		9,200		164,308
Nissin Sugar Manufacturing Company, Ltd.		12,000		26,525
Nissui Pharmaceutical Company, Ltd.		5,000		33,670
Nitta Corp.		6,600		100,840
Nittan Valve Company, Ltd.		4,000		17,092
Nittetsu Mining Company, Ltd.		17,000		62,238

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Nitto Boseki Company, Ltd.		86,000	$	169,441
Nitto Kogyo Corp.		12,500		116,292
Nitto Kohki Company, Ltd.		3,700		71,811
Nitto Seiko Company, Ltd.		8,000		26,326
NIWS Company HQ, Ltd. *		124		0
NOF Corp.		47,000		195,545
Nohmi Bosai, Ltd.		13,000		85,483
Nomura Company, Ltd.		17,000		52,584
Noritake Company, Ltd.		31,000		116,695
Noritsu Koki Company, Ltd.		6,700		95,918
Noritz Corp.		9,100		85,109
Nosan Corp.		18,000		40,419
NS Solutions Corp.		5,000		80,469
Obayashi Road Corp. *		23,000		32,471
Oenon Holdings, Inc.		9,000		23,459
Oiles Corp.		7,100		122,520
Oita Bank, Ltd.		44,000		231,466
Okabe Company, Ltd.		17,000		80,635
Okamoto Industries, Inc.		22,000		80,961
Okamoto Machine Tool Works, Ltd.		7,000		11,245
Okamura Corp.		16,000		101,814
Okano Valve Manufacturing Company *		4,000		23,334
Okasan Holdings, Inc.		52,000		257,734
Oki Electric Industry Company, Ltd. *		160,000		216,985
Okinawa Electric Power Company, Inc.		4,400		233,801
OKK Corp.		10,000		14,466
Okuma Holdings, Inc.		40,000		287,516
Okumura Corp.		47,000		169,251
Okura Industrial Company, Ltd.		8,000		18,089
Okuwa Company, Ltd.		7,000		112,377
Olympic Corp.		4,600		28,707
O-M, Ltd.		8,000		41,307
OMC Card, Inc. *		27,955		72,070
ONO Sokki Company, Ltd.		5,000		25,019
Onoken Company, Ltd.		4,500		67,028
Organo Corp.		10,000		71,717
Oriental Yeast Company, Ltd.		6,000		32,593
Origin Electric Company, Ltd.		6,000		32,949
Osaka Steel Company, Ltd.		8,400		107,269
Osaki Electric Company, Ltd.		10,000		56,974
OSG Corp. (a)		20,400		174,785
Oyo Corp.		7,000		81,704
Pacific Industrial Company, Ltd.		12,000		44,666
Pacific Metals Company, Ltd.		40,001		255,989
PanaHome Corp.		24,000		140,100
Paramount Bed Company, Ltd.		5,000		70,373
Parco Company, Ltd.		18,800		214,674
Paris Miki, Inc.		9,200		77,466
Park24 Company, Ltd.		31,100		161,746
Pasco Corp. *		10,000		16,737
Pasona Group, Inc.		89		62,931
PCA Corp.		1,501		14,473
Penta-Ocean Construction Company, Ltd. *		74,000		84,558
PIA Corp. *		2,600		29,471
Pigeon Corp.		5,200		121,006
Pilot Corp.		46		102,412

 

The accompanying notes are an integral part of the financial statements.

197

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Piolax, Inc.		3,800	$	69,322
Press Kogyo Company, Ltd.		31,000		119,664
Prima Meat Packers, Ltd. *		64,000		69,349
PS Mitsubishi Construction Company, Ltd. *		15,800		40,652
Q.P. Corp.		30,100		284,928
Raito Kogyo Company, Ltd.		9,900		23,050
Rasa Industries, Ltd. (a)		36,000		58,861
Renown, Inc. *		8,000		22,406
Resort Solution Company, Ltd.		9,000		23,235
Resorttrust, Inc.		13,500		145,351
Rhythm Watch Company, Ltd.		53,000		63,197
Ricoh Leasing Company, Ltd.		4,800		96,098
Right On Company, Ltd.		3,900		43,117
Riken Corp.		25,000		84,957
Riken Keiki Company, Ltd.		4,000		25,221
Riken Technos Corp.		8,000		17,982
Riken Vitamin Company, Ltd.		2,000		58,238
Ringer Hut Company, Ltd.		4,800		60,196
Risa Partners, Inc. *		52		45,878
Rock Field Company, Ltd.		1,800		25,262
Rohto Pharmaceutical Company, Ltd.		22,000		262,620
Roland Corp.		6,100		99,236
Round One Corp.		107		87,739
Royal Holdings Company, Ltd.		10,100		91,142
Ryobi, Ltd.		40,000		132,034
Ryoden Trading Company, Ltd.		16,000		95,851
Ryosan Company, Ltd.		12,500		268,557
Ryoshoku, Ltd.		4,000		75,974
Ryoyo Electro Corp.		9,500		91,689
S Foods, Inc.		7,500		50,812
S Science Company, Ltd.		102,000		7,437
Sagami Chain Company, Ltd.		4,000		32,803
Sagami Railway Company, Ltd.		29,000		107,970
Saibu Gas Company, Ltd.		89,000		207,818
Saizeriya Company, Ltd.		10,800		107,744
Sakai Chemical Industry Company, Ltd.		29,000		88,624
Sakai Heavy Industries, Ltd. *		9,000		18,227
Sakai Ovex Company, Ltd. *		20,000		24,598
Sakata INX Corp.		17,000		51,799
Sakata Seed Corp.		10,600		157,628
Sala Corp.		8,000		36,555
San-Ai Oil Company, Ltd.		19,000		74,476
Sanden Corp.		34,000		131,551
Sanei-International Company, Ltd.		4,100		53,350
Sanix, Inc. *		12,200		31,733
Sankei Building Company, Ltd.		11,000		52,652
Sanken Electric Company, Ltd.		32,000		164,758
Sanki Engineering Company, Ltd.		18,000		131,972
Sankyo Seiko Company, Ltd.		24,100		51,365
Sankyo-Tateyama Holdings, Inc.		82,000		91,010
Sanoh Industrial Company, Ltd.		8,700		43,221
Sanrio Company, Ltd.		12,100		137,655
Sanshin Electronics Company, Ltd.		9,000		80,154
Sanwa Shutter Corp.		70,000		260,619
Sanyo Chemical Industries, Ltd.		20,000		97,884
Sanyo Denki Company, Ltd.		15,000		56,627

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Sanyo Shokai, Ltd.		29,000	$	138,199
Sanyo Special Steel Company, Ltd.		32,000		175,813
Sasebo Heavy Industries Company, Ltd.		32,000		65,432
Sato Corp.		7,300		97,003
Sato Shoji Corp.		6,000		46,425
Satori Electric Company, Ltd.		2,400		15,077
Secom Techno Service Company, Ltd.		3,000		79,990
Seibu Electric Industry Company, Ltd.		3,000		13,955
Seika Corp.		16,000		30,996
Seikagaku Corp.		7,600		79,180
Seiko Corp.		23,000		85,827
Seino Transportation Company, Ltd.		49,000		286,505
Seiren Company, Ltd.		19,400		102,379
Sekisui Jushi Corp.		12,000		85,065
Sekisui Plastics Company, Ltd.		34,000		93,996
Senko Company, Ltd.		24,000		88,936
Senshu Electric Company, Ltd.		1,500		22,243
Senshukai Company, Ltd.		13,300		79,562
Shibaura Mechatronics Corp.		8,000		32,645
Shibusawa Warehouse Company, Ltd.		17,000		92,793
Shibuya Kogyo Company, Ltd.		3,300		25,657
Shikibo, Ltd.		20,000		22,833
Shikoku Bank, Ltd.		55,000		193,046
Shikoku Chemicals Corp.		15,000		61,164
Shikoku Coca-Cola Bottling Company, Ltd.		4,900		51,672
Shima Seiki Manufacturing, Ltd.		7,400		172,194
Shimachu Company, Ltd.		15,000		360,688
Shimizu Bank, Ltd.		2,700		103,109
Shin Nippon Air Technologies Company, Ltd.		4,500		36,812
Shinagawa Refractories Company, Ltd.		16,000		34,645
Shindengen Electric Manufacturing Company, Ltd.		28,000		59,065
Shin-Etsu Polymer Company, Ltd.		14,700		78,251
Shinkawa, Ltd.		6,500		79,910
Shin-Keisei Electric Railway Company, Ltd.		10,000		32,905
Shinki Company, Ltd. *		30,500		29,050
Shinko Electric Company, Ltd. (a)		24,000		61,288
Shinko Plantech Company, Ltd.		9,900		100,550
Shinko Shoji Company, Ltd.		6,900		56,172
Shinko Wire Company, Ltd. *		11,000		22,357
Shin-Kobe Electric Machinery Company, Ltd.		12,000		85,328
Shinmaywa Industries, Ltd.		34,000		112,368
Shinnihon Corp.		8,000		6,045
Shinsho Corp.		13,000		35,311
Shinwa Kaiun Kaisha, Ltd.		21,000		103,316
Shiroki Corp.		26,000		72,782
Shizuki Electric Company, Inc.		8,000		27,034
Shizuoka Gas Company, Ltd.		14,000		46,932
SHO-BOND Holdings Company, Ltd.		4,200		73,924
Shobunsha Publications, Inc.		2,400		12,927
Shochiku Company, Ltd. (a)		25,000		138,495
Shoko Company, Ltd.		20,000		24,967
Showa Aircraft Industry Company, Ltd.		3,000		19,957
Showa Corp.		18,700		133,009
Showa KDE Company, Ltd.		10,000		11,068
Showa Sangyo Company, Ltd.		33,000		92,901

 

The accompanying notes are an integral part of the financial statements.

198

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Siix Corp.		4,000	$	22,855
Silver Seiko, Ltd. *		70,000		12,716
Sinanen Company, Ltd.		19,000		75,219
Sintokogio, Ltd.		13,300		104,571
SKY Perfect JSAT Corp.		475		179,058
SMK Corp.		21,000		90,582
Snow Brand Milk Products Company, Ltd. (a)		54,500		165,634
SNT Corp.		7,000		35,413
Soda Nikka Company, Ltd.		4,000		13,521
Sodick Company, Ltd.		18,800		75,657
Soft99 Corp.		3,500		17,437
Sogo Medical Company, Ltd.		1,400		35,318
Sohgo Security Services Company, Ltd.		17,400		198,016
Sorun Corp.		4,700		24,309
Space Company, Ltd.		4,200		23,754
SRA Holdings, Inc.		3,300		32,326
SSP Company, Ltd.		16,000		79,858
ST Chemical Company, Ltd.		6,000		71,424
St. Marc Holdings Company, Ltd.		1,700		60,258
Star Micronics Company, Ltd.		10,900		135,602
Starzen Company, Ltd.		14,000		31,372
Stella Chemifa Corp. (a)		2,900		56,644
Sugimoto & Company, Ltd.		2,000		22,988
Sumida Corp.		4,100		37,929
Suminoe Textile Company, Ltd.		11,000		18,060
Sumisho Computer Systems Corp.		5,400		96,103
Sumitomo Bakelite Company, Ltd.		23,000		118,658
Sumitomo Coal Mining Company, Ltd. *		49,000		33,344
Sumitomo Densetsu Company, Ltd.		12,700		62,651
Sumitomo Forestry Company, Ltd.		39,400		281,429
Sumitomo Light Metal Industries, Ltd.		82,000		87,835
Sumitomo Mitsui Company, Ltd. *		77,600		56,579
Sumitomo Osaka Cement Company, Ltd.		134,000		225,036
Sumitomo Pipe & Tube Company, Ltd.		6,000		41,060
Sumitomo Precision Products Company, Ltd.		6,000		20,361
Sumitomo Real Estate Sales Company, Ltd.		2,600		76,411
Sumitomo Seika Chemicals Company, Ltd.		13,000		44,691
Sumitomo Warehouse Company(The), Ltd.		48,952		179,835
Sun Wave Corp.		11,000		14,845
Sunx, Ltd.		5,400		24,772
SWCC Showa Holdings Company, Ltd.		80,000		106,690
SxL Corp. *		25,000		14,804
SystemPro Company, Ltd. *		49		23,005
T. Hasegawa Company, Ltd.		6,900		102,118
T. Rad Company, Ltd.		15,000		73,838
Tachibana Eletech Company, Ltd.		4,000		33,351
Tachikawa Corp.		4,600		18,831
Tachi-S Company, Ltd.		8,300		95,719
Tadano, Ltd.		25,000		192,366
Taihei Dengyo Kaisha, Ltd.		11,000		89,210
Taihei Kogyo Company, Ltd.		12,000		39,226
Taiheiyo Kaiun Company, Ltd. * (a)		13,000		16,979
Taiheiyo Kouhatsu, Inc. *		31,000		23,270
Taiho Kogyo Company, Ltd.		10,100		100,793
Taikisha, Ltd.		10,000		135,960
Taisei Lamick Company, Ltd. *		900		20,614

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Taisei Rotec Corp.		18,000	$	31,769
Taiyo Yuden Company, Ltd.		33,000		363,697
Takagi Securities Company, Ltd.		15,000		28,796
Takamatsu Corp.		6,200		86,591
Takano Company, Ltd.		2,000		13,904
Takaoka Electric Manufacturing Company, Ltd.		18,000		23,429
Takara Holdings, Inc.		37,000		254,492
Takara Printing Company, Ltd.		3,300		33,046
Takara Standard Company, Ltd.		32,000		158,892
Takasago International Corp.		23,000		127,983
Takasago Thermal Engineering Company, Ltd.		18,000		176,152
Takiron Company, Ltd.		10,000		27,879
Takisawa Machine Tool Company, Ltd. *		28,000		32,457
Takuma Company, Ltd.		26,000		79,990
Tamura Corp.		22,000		59,359
Tamura Taiko Holdings, Inc.		9,000		13,143
Tasaki Shinju Company, Ltd.		7,000		11,899
Tatsuta Electric Wire & Cable Company, Ltd.		12,000		31,931
Tayca Corp.		11,000		31,808
TBK Company, Ltd.		10,000		32,652
TCM Corp.		22,000		45,552
Teac Corp. *		67,000		42,635
Techno Ryowa, Ltd.		6,400		33,789
Tecmo, Ltd.		5,300		38,794
Teikoku Electric Manufacturing Company, Ltd. (a)		2,000		35,983
Teikoku Piston Ring Company, Ltd.		4,800		30,933
Teikoku Sen-I Company, Ltd.		8,000		29,122
Teikoku Tsushin Kogyo Company, Ltd.		16,000		46,070
Tekken Corp. *		53,000		55,348
Telepark Corp. *		44		53,443
Tenma Corp.		6,800		102,744
The Fuji Fire and Marine Insurance Company, Ltd.		43,000		116,959
The Hokkoku Bank, Ltd. *		95,000		348,453
The Hyakugo Bank, Ltd.		47,282		266,458
The Nanto Bank, Ltd.		34,000		183,414
The Pack Corp.		3,300		40,897
The San-in Godo Bank, Ltd.		33,000		255,265
Tigers Polymer Corp.		2,000		7,719
TKC Corp.		4,900		87,233
TOA Corp. *		67,000		78,112
TOA Oil Company, Ltd.		22,000		26,514
TOA Road Corp.		15,000		21,955
Toagosei Company, Ltd.		58,000		218,753
Tobishima Corp. * (a)		158,000		27,291
Tobu Store Company, Ltd.		14,000		50,944
TOC Company, Ltd.		29,500		114,054
Tocalo Company, Ltd.		4,300		65,411
Tochigi Bank, Ltd.		32,000		175,305
Toda Corp.		78,000		280,701
Toda Kogyo Corp.		9,000		30,515
Todentsu Corp.		6,000		11,202
Toei Company, Ltd.		16,000		87,544
Toenec Corp.		14,000		71,321
Tohcello Company, Ltd.		4,000		17,534
Toho Bank, Ltd.		57,000		227,887

 

The accompanying notes are an integral part of the financial statements.

199

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Toho Company, Ltd.		12,000	$	35,748
Toho Real Estate Company, Ltd.		11,600		58,253
Toho Titanium Company, Ltd. (a)		9,700		143,512
Toho Zinc Company, Ltd.		37,000		123,171
Tohoku Bank, Ltd.		15,000		23,420
Tohto Suisan Company, Ltd.		15,000		24,036
Tokai Corp.		15,000		84,019
Tokai Kanko Company, Ltd. *		62,000		23,884
Tokai Rubber Industries, Ltd. *		12,800		142,763
Tokai Tokyo Securities Company, Ltd.		61,000		216,240
Tokimec, Inc.		13,000		23,917
Toko Electric Corp.		8,000		18,427
Toko, Inc. *		16,000		22,519
Tokushima Bank, Ltd.		26,000		108,619
Tokushu Tokai Holdings Company, Ltd.		45,110		88,744
Tokyo Dome Corp. *		44,000		201,138
Tokyo Electron Device, Ltd.		22		34,485
Tokyo Energy & Systems, Inc.		9,000		50,453
Tokyo Kikai Seisakusho, Ltd. (a)		10,000		21,899
Tokyo Leasing Company, Ltd.		8,000		75,093
Tokyo Ohka Kogyo Company, Ltd.		14,500		262,823
Tokyo Rakutenchi Company, Ltd.		9,000		31,281
Tokyo Rope Manufacturing Company, Ltd.		34,000		94,794
Tokyo Sangyo Company, Ltd. *		9,500		26,304
Tokyo Seimitsu Company, Ltd. (a)		12,600		163,666
Tokyo Style Company, Ltd.		22,000		183,062
Tokyo Tekko Company, Ltd.		14,000		39,384
Tokyo Theatres Company, Inc.		33,000		60,610
Tokyo Tomin Bank (The), Ltd.		10,400		167,393
Tokyotokeiba Company, Ltd.		57,000		92,221
Tokyu Community Corp.		3,200		60,111
Tokyu Construction Company, Ltd.		22,940		66,926
Tokyu Livable, Inc.		6,600		42,296
Tokyu Recreation Company, Ltd.		6,000		31,686
Toli Corp.		10,000		17,114
Tomato Bank, Ltd.		27,000		52,491
Tomen Electronics Corp.		4,000		45,935
Tomoe Corp.		8,000		12,951
Tomoegawa Company, Ltd. *		17,000		41,018
Tomoku Company, Ltd.		16,000		33,624
Tomy Company, Ltd.		18,500		121,777
Tonami Transportation Company, Ltd.		27,000		57,098
Topcon Corp.		15,500		103,013
Toppan Forms Company, Ltd.		12,500		150,250
Topre Corp.		11,500		95,057
Topy Industries, Ltd.		58,000		164,461
Tori Holdings Company, Ltd. * (a)		73,000		4,665
Torigoe Company, Ltd.		5,000		38,142
Torii Pharmaceutical Company, Ltd.		5,100		79,452
Torishima Pump Manufacturing Company, Ltd.		5,000		99,898
Toshiba Machine Company, Ltd. *		33,000		144,761
Toshiba Plant Systems & Services Corp.		16,000		145,161
Tosho Printing Company, Ltd.		21,000		53,466
Totetsu Kogyo Company, Ltd.		6,000		30,999
Tottori Bank, Ltd.		27,000		70,397
Touei Housing Corp.		4,800		8,102

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Towa Bank, Ltd. *		46,000	$	44,115
Towa Corp.		4,900		34,305
Towa Pharmaceutical Company, Ltd. (a)		3,300		125,926
Towa Real Estate Development Company, Ltd.		47,000		35,226
Toyo Construction Company, Ltd. *		118,000		50,277
Toyo Corp.		11,000		117,957
Toyo Electric Manufacturing Company, Ltd.		6,000		17,668
Toyo Engineering Corp.		35,000		182,442
Toyo Ink Manufacturing Company, Ltd.		66,000		216,250
Toyo Kanetsu KK		50,000		92,227
Toyo Kohan Company, Ltd.		22,000		113,093
Toyo Machinery & Metal Company, Ltd.		4,000		11,818
Toyo Securities Company, Ltd.		19,000		59,095
Toyo Sugar Refining Company, Ltd. *		27,000		32,278
Toyo Tire & Rubber Company, Ltd.		40,000		103,301
Toyo Wharf & Warehouse Company, Ltd.		17,000		30,233
Toyobo Company, Ltd.		194,064		323,119
Trans Cosmos, Inc.		11,000		79,861
Trusco Nakayama Corp.		5,800		79,279
Tsubakimoto Chain Company, Ltd.		36,000		183,302
Tsubakimoto Kogyo Company, Ltd.		10,000		27,436
Tsudakoma Corp.		20,000		35,948
Tsugami Corp.		14,000		38,860
Tsukishima Kikai Company, Ltd.		7,000		56,722
Tsumura & Company, Ltd.		6,400		178,397
Tsurumi Manufacturing Company, Ltd.		4,000		30,353
Tsutsumi Jewelry Company, Ltd.		3,000		58,382
TTK Company, Ltd.		6,000		30,292
TYK Corp.		8,000		16,280
Ube Material Industries, Ltd.		12,000		24,907
Uchida Yoko Company, Ltd.		13,000		49,328
Unicharm Petcare Corp.		4,000		127,570
Uniden Corp.		19,000		82,607
Unimat Life Corp.		6,700		60,210
Union Tool Company, Ltd.		3,000		72,202
Unitika, Ltd.		114,000		103,725
U-Shin, Ltd.		10,400		86,235
Utoc Corp. *		4,300		14,910
Valor Company, Ltd.		9,900		87,688
Venture Link Company, Ltd. *		9,800		2,852
Victor Company of Japan, Ltd. *		51,000		85,749
Vital-Net, Inc.		12,300		82,367
Wakachiku Construction Company, Ltd. *		17,000		8,019
Warabeya Nichiyo Company, Ltd.		5,800		81,376
Watabe Wedding Corp.		2,000		19,243
Watami Company, Ltd.		8,000		131,568
Weathernews, Inc. *		1,900		26,173
Wood One Company, Ltd.		13,000		70,088
Xebio Company, Ltd.		6,600		121,598
Yahagi Construction Company, Ltd.		8,000		35,507
Yaizu Suisankagaku Industry Company, Ltd.		2,700		25,898
Yamagata Bank, Ltd.		41,000		216,618
Yamaichi Electronics Company, Ltd.		3,100		14,271
Yamanashi Chuo Bank, Ltd.		51,686		273,468
Yamatane Corp.		20,000		29,210
Yamazen Corp.		13,400		46,222

 

The accompanying notes are an integral part of the financial statements.

200

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Yaoko Company, Ltd.		1,900	$	65,799
Yasuda Warehouse Company, Ltd.		4,000		33,987
Yellow Hat, Ltd.		3,600		13,761
Yodogawa Steel Works, Ltd.		50,000		255,383
Yokogawa Bridge Corp.		13,000		77,069
Yokohama Reito Company, Ltd.		16,000		116,388
Yokowo Company, Ltd.		2,800		16,968
Yomeishu Seizo Company, Ltd.		4,000		37,892
Yomiuri Land Company, Ltd.		17,000		51,846
Yondenko Corp.		7,000		34,585
Yonekyu Corp.		6,000		68,049
Yorozu Corp.		6,800		85,605
Yoshimoto Kogyo Company, Ltd.		10,100		100,461
Yoshinoya D&C Company, Ltd.		116		123,422
Yuasa Funashoku Company, Ltd.		4,000		8,429
Yuasa Trading Company, Ltd.		50,000		60,471
Yuken Kogyo Company, Ltd.		14,000		34,373
Yuki Gosei Kogyo Comapny, Ltd. *		11,000		38,919
Yukiguni Maitake Company, Ltd.		8,500		28,834
Yuraku Real Estate Company, Ltd.		13,000		29,738
Yurtec Corp.		15,000		69,781
Yushin Precision Equipment Company, Ltd. *		2,100		33,292
Yushiro Chemical Industry Company, Ltd.		3,300		53,739
Zenrin Company, Ltd.		5,000		73,258
Zensho Company, Ltd. (a)		23,600		87,413
Zeria Pharmaceutical Company, Ltd.		10,000		100,341
Zuken, Inc.		7,800		65,263
				90,207,478
Luxembourg - 0.03%
Thiel Logistik AG *		55,482		109,529
Netherlands - 2.11%
Aalberts Industries NV		64,768		995,999
Accell Group NV		1,948		70,539
Arcadis NV		13,374		283,786
ASM International NV *		13,184		326,718
BE Semiconductor Industries NV *		3,295		14,614
Beter Bed Holding NV		4,270		59,285
Brunel International NV		2,953		68,345
Crown Van Gelder		2,756		37,841
Crucell NV, ADR * (a)		8,469		136,436
Crucell NV *		8,466		136,412
Draka Holding NV		4,974		148,797
Eriks Group NV		3,577		220,191
Exact Holdings NV		2,893		87,800
Fornix Biosciences NV		1,231		16,523
Gamma Holding NV		586		20,924
Grontmij NV		2,444		87,374
Heijmans NV		4,595		88,776
ICT Automatisering NV		1,167		13,683
Imtech NV		47,994		1,231,316
InnoConcepts NV		4,554		72,168
KAS Bank NV		3,349		115,813
Kendrion NV		3,294		77,647
Koninklijke BAM Groep NV		40,053		706,488
Koninklijke Ten Cate NV		7,365		290,190

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Netherlands (continued)
Koninklijke Vopak NV		4,451	$	262,072
Laurus NV *		15,997		87,221
Macintosh Retail Group NV		3,032		53,871
Nederlandsche Apparatenfabriek NEDAP NV (a)		441		15,512
Nutreco Holding NV		8,264		510,165
Oce NV		17,667		171,542
OPG Groep NV		23,944		400,265
Ordina NV		10,287		109,917
Samas NV *		11,681		41,813
Sligro Food Group NV		5,530		190,631
Smit Internationale NV		3,742		288,329
Telegraaf Media Groep NV		8,333		220,223
TKH Group NV		8,034		180,498
Unit 4 Agresso NV		5,229		113,207
USG People NV		19,251		348,410
Van der Moolen Holding NV *		13,465		99,362
Wavin NV		16,521		134,057
				8,534,760
New Zealand - 0.55%
Air New Zealand, Ltd.		76,191		61,118
Ebos Group, Ltd.		2,926		10,116
Fisher & Paykel Appliances Holdings, Ltd.		73,674		90,466
Fisher & Paykel Healthcare Corp.		141,320		310,743
Freightways, Ltd.		29,559		69,416
Hallenstein Glasson Holdings, Ltd.		11,055		22,358
Hellaby Holdings, Ltd.		12,186		16,204
Infratil, Ltd.		128,127		205,637
Mainfreight, Ltd.		25,914		127,840
New Zealand Exchange, Ltd.		2,000		9,597
New Zealand Oil & Gas, Ltd.		76,725		84,658
New Zealand Refining Company, Ltd.		33,398		172,780
Nuplex Industries, Ltd.		25,188		112,520
PGG Wrightson, Ltd.		36,403		69,775
Port of Tauranga, Ltd.		22,511		110,470
Pumpkin Patch, Ltd.		30,500		33,874
Ryman Healthcare, Ltd.		122,620		147,065
Sanford, Ltd.		9,723		40,212
Sky City Entertainment Group, Ltd.		144,681		363,987
Steel & Tube Holdings, Ltd.		7,400		18,013
Tower, Ltd.		23,103		35,653
Vector, Ltd.		80,922		131,088
				2,243,590
Norway - 2.04%
Acta Holding ASA		30,000		27,587
Aker Yards AS *		32,592		377,118
Aktiv Kapital ASA (a)		5,600		72,720
Austevoll Seafood		29,000		129,257
Awilco Offshore ASA *		20,414		316,142
Birdstep Technology ASA *		21,000		24,473
Blom ASA *		7,600		52,438
Bonheur ASA		3,050		133,550
BW GAS, Ltd. *		13,500		127,587
BW Offshore, Ltd. *		64,000		162,677
Camillo Eitzen & Company ASA		5,800		57,197
Cermaq ASA		17,800		172,273

 

The accompanying notes are an integral part of the financial statements.

201

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Norway (continued)
Copeinca ASA *		15,800	$	115,089
CorrOcean ASA *		70,000		64,714
Det Norske Oljeselskapb ASA *		260,900		419,028
DOF ASA		9,100		91,289
DOF Subsea ASA *		13,900		84,191
EDB Business Partner ASA		15,000		81,326
Eitzen Chemical ASA *		26,000		91,912
Ekornes ASA		10,400		169,867
Electromagnetic GeoServices AS *		2,600		9,862
Eltek ASA *		14,600		61,727
Ementor ASA *		22,653		137,314
Farstad Shipping ASA		4,000		105,195
Ganger Rolf ASA		4,910		189,839
Kongsberg Automotive ASA *		15,000		42,499
Kongsberg Gruppen ASA		2,300		154,533
Kverneland Gruppen A/S *		19,000		43,465
Leroy Seafood Group ASA		7,900		117,139
Nordic Semiconductor ASA *		7,500		33,471
Norse Energy Corp. ASA *		62,000		62,809
Norske Skogindustrier ASA * (a)		31,000		169,021
Norwegian Air Shuttle ASA *		2,792		24,598
Odfjell ASA		6,507		65,338
ODIM ASA *		7,900		123,978
Petrolia Drilling ASA *		165,000		63,883
PhotoCure ASA *		1,408		8,857
ProSafe ASA *		60,784		547,306
Q-Free ASA *		22,000		38,510
Revus Energy ASA *		10,300		157,958
Scana Industrier		28,000		73,008
Schibsted ASA		15,900		408,358
Sevan Marine ASA *		55,533		570,532
Solstad Offshore ASA		4,000		85,819
Songa Offshore ASA *		22,500		317,056
Sparebanken Midt-Norge		18,015		156,020
Tandberg ASA		28,900		625,174
TGS Nopec Geophysical Company ASA *		32,000		427,308
Tomra Systems ASA		42,721		289,166
TTS Marine ASA		3,000		38,403
Veidekke ASA		26,700		170,613
Wilhelm Wilhelmsen ASA		5,400		168,901
				8,258,095
Portugal - 0.54%
Altri SGPS SA		12,342		46,814
Banco BPI SA		86,043		289,143
Finibanco Holding SGPS SA		5,017		20,904
Impresa, SGPS SA *		29,906		54,294
Investimentos Participacoes e Gestao SA *		57,093		51,888
Mota Engil, SGPS SA		29,599		157,909
Novabase SGPS SA *		7,943		57,913
Pararede SGPS SA *		19,555		34,631
Portucel - Empresa Produtora de Pasta e Papel SA		112,684		335,045
PT Multimedia.com, SGPS, SA		67,195		527,934
SAG GEST-Solucoes Automovel Globais SGPS SA		9,334		24,317

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Portugal (continued)
Semapa-Sociedade de Investimento & Gestao, SGPS SA		25,623	$	288,301
Sonae Industria, SGPS SA		21,800		84,751
Sonae, SGPS, SA		42,153		42,889
Sonaecom, SGPS SA *		36,742		104,973
Teixeira Duarte-Engenharia & Construcoes SA		37,298		56,284
				2,177,990
Singapore - 1.38%
Allgreen Properties, Ltd.		258,000		145,158
Asia Food & Properties, Ltd. *		464,000		159,260
ASL Marine Holdings, Ltd.		37,000		26,986
Beyonics Technology, Ltd.		178,000		21,833
Bonvests Holdings, Ltd.		56,400		36,230
Bukit Sembawang Estates, Ltd.		18,000		87,221
Cerebos Pacific, Ltd.		22,000		57,627
CH Offshore, Ltd.		136,000		54,178
Chartered Semiconductor Manufacturing, Ltd., ADR *		11,031		37,726
Chartered Semiconductor Manufacturing, Ltd. *		191,000		64,995
China Merchants Holdings Pacific, Ltd.		70,000		35,028
Chip Eng Seng Corp., Ltd.		107,000		18,277
Chuan Hup Holdings, Ltd.		192,000		46,652
Creative Technology, Ltd.		15,150		65,111
CSC Holdings, Ltd.		191,000		21,378
CSE Global, Ltd.		113,000		76,872
CWT, Ltd.		31,000		14,470
Delong Holdings, Ltd. (a)		45,500		96,860
Ezra Holdings Pte, Ltd.		82,000		103,818
FJ Benjamin Holdings, Ltd. (a)		66,000		13,010
Food Empire Holdings, Ltd.		52,800		20,307
Fu Yu Corp., Ltd. * (a)		220,000		13,874
Furama, Ltd.		12,000		12,515
Goodpack, Ltd. *		57,000		56,952
Guocoland, Ltd.		79,300		105,777
Hersing Corp., Ltd.		88,000		13,576
Hi-P International, Ltd.		80,000		30,975
Ho Bee Investment, Ltd.		45,000		21,318
Hong Fok Corp., Ltd. * (a)		74,800		27,932
Hong Leong Asia, Ltd.		43,000		39,166
Hotel Plaza, Ltd.		60,000		59,536
Hotel Properties, Ltd. (a)		67,100		83,767
HTL International Holdings, Ltd. *		57,000		8,015
HupSteel, Ltd.		100,000		22,052
Hwa Hong Corp., Ltd.		92,000		37,136
Hyflux, Ltd. (a)		62,000		123,578
Innotek, Ltd.		65,000		24,746
Jaya Holdings, Ltd.		56,000		48,760
Jurong Technologies Industrial Corp., Ltd.		83,200		14,601
K1 Ventures, Ltd. *		374,000		64,339
Keppel Telecommunications & Transportation Company, Ltd.		47,000		175,009
Kim Eng Holdings, Ltd.		34,795		31,301
KS Energy Services Ltd		48,000		55,651
Low Keng Huat Singapore, Ltd.		110,000		14,675
Manhattan Resources, Ltd. *		61,000		29,077
MediaRing, Ltd. * (a)		145,000		10,110

 

The accompanying notes are an integral part of the financial statements.

202

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Singapore (continued)
Metro Holdings, Ltd.		118,000	$	56,265
MFS Technology, Ltd.		56,000		8,299
Midas Holdings, Ltd.		77,000		28,303
MobileOne, Ltd.		116,000		156,395
NatSteel, Ltd.		41,000		40,735
Orchard Parade Holdings, Ltd.		70,000		42,143
Osim International, Ltd. * (a)		81,000		14,290
Pan-United Corp., Ltd.		61,000		24,167
Parkway Holdings, Ltd.		226,000		354,107
Petra Foods, Ltd.		46,000		28,406
Raffles Education Corp., Ltd.		280,000		164,567
Rotary Engineering, Ltd.		57,000		21,395
SBS Transit, Ltd.		29,500		43,438
SC Global Developments, Ltd. (a)		55,000		31,057
Sim Lian Group, Ltd.		42,000		13,752
Singapore Food Industries, Ltd.		68,000		37,797
Singapore Land, Ltd.		38,000		146,926
Singapore Post, Ltd.		341,000		244,485
Singapore Reinsurance Corp., Ltd.		72,000		12,940
Singapore Shipping Corp., Ltd. (a)		90,000		19,610
Sinomem Technology, Ltd. *		76,000		20,300
SMRT Corp., Ltd.		215,000		277,984
SP Chemicals, Ltd.		73,500		29,483
Sunningdale Tech, Ltd.		200,000		16,100
Tat Hong Holdings, Ltd.		76,000		66,651
TT International, Ltd. *		190,000		16,728
Tuan Sing Holdings, Ltd. *		188,000		25,748
Unisteel Technology, Ltd.		65,250		88,804
United Engineers, Ltd.		39,000		73,895
United Overseas Land, Ltd.		121,000		244,635
UOB-Kay Hian Holdings, Ltd.		75,000		68,387
Venture Corp., Ltd.		65,000		456,532
WBL Corp., Ltd.		30,000		99,398
Wheelock Properties (S), Ltd.		106,000		97,591
Wing Tai Holdings, Ltd.		167,300		157,682
Yongnam Holdings, Ltd. *		247,000		23,230
				5,579,660
South Korea - 0.00%
Pantech & Curitel Communications, Inc. *		882		0
Pantech Company, Ltd. *		1,112		0
Spain - 2.38%
Abengoa SA		12,595		336,848
Adolfo Dominguez SA (a)		1,580		29,017
Amper SA		6,189		64,071
Antena 3 de Television SA		25,273		227,079
Avanzit SA *		25,467		53,065
Azkoyen SA * (a)		6,658		49,577
Banco Guipuzcoano SA		38,237		426,050
Banco Pastor SA *		51,168		495,469
Baron de Ley SA *		1,392		90,401
Campofrio Alimentacion SA		7,918		107,864
Cementos Portland Valderrivas SA		3,931		215,898
Construcciones & Auxiliar de Ferrocarriles SA		616		256,320
Corporacion Dermoestetica SA *		3,631		22,849
Duro Felguera SA		12,223		106,900

 

International Small Company Fund (continued)
		Shares or Principal Amount		Value
COMMON STOCKS (continued)
Spain (continued)
Ebro Puleva SA			33,725	$	581,698
Electrificaciones del Norte SA			5,639		216,650
Ercros SA *			305,710		98,184
FAES FARMA SA			51,074		416,954
General de Alquiler de Maquinaria *			6,056		113,000
Grupo Catalana Occidente SA	��		18,347		522,924
Grupo Empresarial Ence SA			34,402		247,599
Iberia Lineas Aereas de Espana SA			170,106		504,309
Iberpapel Gestion SA			2,124		40,197
La Seda de Barcelona SA			199,812		274,347
Mecalux SA *			3,385		87,103
Miquel y Costas SA			3,706		50,222
Natra SA			4,190		38,874
Natraceutical SA *			49,023		51,651
NH Hoteles SA			21,220		258,764
Obrascon Huarte Lain SA			13,227		373,200
Papeles & Cartones de Europa SA *			10,706		67,348
Pescanova SA			1,698		75,755
Prim SA			2,850		39,260
Promotora de Informaciones SA			26,913		234,372
Prosegur Cia de Seguridad SA			7,799		311,291
Service Point Solutions SA * (a)			25,764		60,916
Sociedad Nacional Inds., Aplicaciones Celulosa Espanola SA * (a)			18,863		45,034
Sol Melia SA			21,913		188,142
SOS Cuetara SA			12,361		246,713
Tavex Algodonera SA *			8,440		17,044
Tecnocom, Telecomunicaciones & Energia SA *			8,629		45,805
Tubacex SA			34,476		294,560
Tubos Reunidos SA			59,205		334,455
Unipapel SA			2,109		38,118
Urbas Proyectos Urbanisticos SA *			10,449		3,367
Vertice Trescientos Sesenta Grados *			1,265		2,400
Vidrala SA			5,408		153,533
Viscofan SA			18,944		379,091
Vocento SA (a)			23,625		259,547
Zeltia SA *			57,790		452,355
					9,606,190
Sweden - 2.22%
AarhusKarlshamn AB			8,830		188,624
Acando AB, Series B			14,000		28,923
Active Biotech AB *			4,550		30,868
AddTech AB, Series B			3,800		76,041
Angpanneforeningen AB, Series B			3,400		93,076
Anoto Group AB *			31,000		20,260
Axfood AB			8,250		259,142
Axis Communications AB			9,900		121,908
BE Group AB			7,800		70,979
Beijer Alma AB			5,200		64,363
Beijer Electronics AB			1,777		40,614
Bergman & Beving AB, Series B			6,950		148,004
Bilia AB, Series A			5,300		35,498
Billerud Aktibolag AB			11,500		90,666
BioGaia AB *			5,360		38,693
Biotage AB *			25,000		31,158
Biovitrum AB *			8,300		76,407

 

The accompanying notes are an integral part of the financial statements.

203

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Sweden (continued)
Bong Ljungdahl AB, Series B		4,000	$	21,220
Brostrom AB		18,100		159,031
Cardo AB		6,500		172,684
Clas Ohlson AB, Series B		7,150		96,348
Cloetta Fazer AB		6,055		215,770
Concordia Maritime AB, Series B		6,500		19,642
D. Carnegie & Company AB		52,789		661,187
Elekta AB, Series B		24,800		526,412
Enea AB *		63,903		331,329
Eniro AB		19,745		85,793
Fagerhult AB		600		14,209
G & L Beijer AB		2,000		42,835
Gunnebo AB		5,274		30,275
Hakon Invest AB		11,296		160,727
Haldex AB		8,300		118,982
Hemtex AB * (a)		3,578		22,354
HIQ International AB		18,000		74,705
Hoganas AB, Series B		9,500		181,434
Hoganas AB *		2,400		5,581
Holmen AB, Series B		18,900		602,935
IBS AB, Series B *		17,000		19,238
Industrial & Financial Systems AB		5,600		48,315
Indutrade AB		5,550		108,741
Intrum Justitia AB		16,500		257,550
JM AB		24,127		288,951
KappAhl Holding AB *		13,900		96,268
Lagercrantz AB *		4,000		19,767
Lindab International AB		19,300		316,096
Medivir AB *		4,800		40,667
Mekonomen AB		2,200		29,784
Micronic Laser Systems AB *		7,700		27,176
Munters AB		14,350		115,421
NCC AB		22,448		293,658
Net Insight AB *		50,000		39,455
New Wave Group AB, Series B		6,000		25,214
Nibe Industrier AB, Series B		19,700		134,687
Nobia AB		42,800		229,638
Nolato AB, Series B		4,700		42,912
OEM International AB, Series B		13,900		95,972
ORC Software AB		1,800		33,136
PA Resources AB *		33,946		262,540
Peab AB, Series B		27,100		183,661
Peab Industri AB		8,800		71,279
Proffice AB *		10,000		26,277
Q-Med AB		14,300		79,677
Rederi AB Transatlantic, Series B		9,000		59,201
Rezidor Hotel Group AB		33,400		136,319
RNB Retail & Brands AB		20,600		41,457
Semcon AB *		4,200		36,375
Sensys Traffic AB *		60,000		31,464
Sintercast AB *		1,700		27,625
Skanditek Industriforvaltning AB		9,500		28,256
SkiStar AB, Series B		5,100		68,807
Studsvik AB		1,200		24,072
Sweco AB, Series B		13,000		102,015
Teleca AB, Series B *		14,200		10,506

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Sweden (continued)
TradeDoubler AB		6,000	$	52,409
Trelleborg AB, Series B		28,820		499,569
				8,962,832
Switzerland - 4.26%
Advanced Digital Broadcast Holdings SA *		1,275		41,580
AFG Arbonia-Forster Holding AG		528		112,697
Allreal Holding AG		2,415		280,604
Also Holding AG		779		38,167
Aryzta AG *		1,332		69,313
Ascom Holding AG *		7,392		72,267
Bachem Holding AG		999		83,279
Bank Coop AG		2,089		147,921
Bank Sarasin & Compagnie AG, Series B		8,802		379,322
Banque Cantonale de Geneve		76		16,638
Banque Cantonale Vaudoise, Series B *		820		248,196
Basilea Pharmaceutica AG *		2,093		322,556
Basler Kantonalbank		564		59,355
Belimo Holding AG		105		98,682
Bell Holding AG		58		89,109
Berner Kantonalbank *		1,072		226,733
Bobst Group AG		2,924		205,939
Bossard Holding AG		1,000		65,265
Bucher Industries AG		1,890		387,507
Burckhardt Compression Holding AG		644		165,279
Card Guard AG *		1,457		13,264
Centralschweizerische Kraftwerke AG		301		145,959
Charles Voegele Holding AG *		2,665		138,377
Ciba Specialty Chemicals AG		15,988		393,799
Clariant AG *		81,924		735,773
Conzzeta Holding AG		70		166,553
Cytos Biotechnology AG *		1,298		67,382
Daetwyler Holding AG *		2,100		129,241
Dufry Group		1,867		135,254
Elektrizitaets-Gesellschaft Laufenburg AG		86		106,919
Emmi AG		663		77,357
EMS-Chemie Holding AG		2,693		331,109
Energiedienst Holding AG *		2,304		142,102
Flughafen Zuerich AG		1,334		485,775
Forbo Holding AG *		398		167,724
Galenica Holding AG		1,426		564,717
Georg Fischer AG *		1,327		503,709
Gurit Heberlein AG		475		426,349
Helvetia Patria Holding AG		1,607		498,058
Industrieholding Cham AG *		133		43,482
Interroll Holding AG *		144		51,524
Jelmoli Holding AG *		158		386,472
Kaba Holding AG, Series B		621		167,466
Kardex AG *		1,244		67,588
Komax Holding AG		999		121,813
Kudelski SA		11,049		141,277
Kuoni Reisen Holding AG, Series B		3,158		1,501,228
LEM Holding SA		350		101,408
Luzerner Kantonalbank		750		175,844
Medisize Holding AG		3,598		241,141
Meyer Burger Technology AG *		641		190,724
Mobilezone Holding AG		8,109		54,863

 

The accompanying notes are an integral part of the financial statements.

204

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Switzerland (continued)
Mobimo Holding AG *		1,246	$	201,535
Orell Fuessli Holding AG		223		40,278
Phoenix Mecano AG		185		82,798
Precious Woods Holding AG *		632		50,521
PubliGroupe SA		515		106,634
Quadrant AG *		737		77,198
Rieter Holding AG		1,205		390,354
Romande Energie Holding SA		115		302,541
Schulthess Group AG		483		27,132
Schweiter Technologies AG		263		101,142
Schweizerhall Holding AG		533		108,909
Schweizerische National-Versicherungs-Gesellschaft AG *		143		92,110
Sia Abrasives Holding AG		134		46,973
Siegfried Holding AG		595		82,294
St. Galler Kantonalbank		817		347,896
Swissfirst AG		1,224		63,811
Swisslog Holding AG *		37,946		34,014
Swissquote Group Holding SA *		1,660		58,618
Tamedia AG		497		58,675
Tecan Group AG *		2,658		150,625
Temenos Group AG *		15,717		412,408
Tornos SA *		2,391		18,608
Valiant Holding AG		5,783		1,029,785
Valora Holding AG		858		203,386
Vaudoise Assurances Holding SA		118		20,361
Verwaltungs & Privat Bank AG		5,047		980,864
Vontobel Holding AG		7,084		235,760
VZ Holding AG		571		37,887
WMH Walter Meier AG, Series A *		120		16,614
Ypsomed Holding AG *		908		73,344
Zehnder Group AG		82		92,287
Zuger Kantonalbank		35		114,393
				17,244,415
United Kingdom - 16.50%
A.G. Barr PLC		2,441		52,283
Abacus Group PLC		13,889		5,454
Aberdeen Asset Management PLC		223,071		582,716
Acal PLC		5,883		15,657
Acambis PLC *		16,948		57,990
AEA Technology PLC *		18,852		15,120
Aegis Group PLC		270,540		550,922
Aga Rangemaster Group PLC *		17,247		62,107
Aggreko PLC		98,123		1,285,659
Alexon Group PLC		6,881		7,463
Alizyme PLC *		58,896		6,978
Alphameric PLC *		33,484		15,106
Amlin PLC		150,810		795,499
Anglo Pacific Group PLC		35,012		115,707
Anglo-Eastern Plantations PLC		3,369		30,473
Anite Group PLC		79,733		56,624
Antisoma PLC *		137,552		65,481
ARC International PLC *		45,915		15,235
Arena Leisure PLC		50,686		26,765
Aricom PLC *		289,439		244,165
Ark Therapeutics Group PLC *		32,845		39,557

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Arm Holdings PLC, ADR		133,112	$	814,645
Arriva PLC		60,849		877,800
Aryzta AG *		12,094		589,051
Ashtead Group PLC		175,651		242,506
Aveva Group PLC		18,285		487,897
Avis Europe PLC *		85,382		17,120
Avon Rubber PLC		11,107		17,211
Axis-Shield PLC *		6,029		35,498
Axon Group PLC		13,826		152,855
Babcock International Group PLC		56,826		620,191
Barratt Developments PLC		92,311		246,148
BBA Aviation PLC		133,833		323,521
Beazley Group PLC		118,130		238,925
Bellway PLC		36,565		407,663
Benfield Group, Ltd.		44,159		276,021
Berkeley Group Holdings PLC *		26,492		408,841
Bespak PLC		7,040		70,645
Biocompatibles International PLC *		10,935		33,288
Blacks Leisure Group PLC		5,193		9,643
Bloomsbury Publishing PLC		15,244		47,224
BlueBay Asset Management		18,457		83,197
Bodycote International PLC		295,612		1,249,514
Bovis Homes Group PLC		39,503		313,969
BPP Holdings PLC		8,591		70,482
Braemar Seascope Group PLC		1,164		10,079
Brammer PLC		13,505		63,123
Brewin Dolphin Holdings PLC		41,062		83,658
Brit Insurance Holdings PLC		109,974		387,241
British Polythene Industries PLC		4,400		18,447
Britvic PLC		52,403		223,671
BSS Group PLC		36,568		210,358
BTG PLC *		43,947		189,017
Business Post Group PLC		6,109		34,298
Capital & Regional PLC		14,846		49,925
Care UK PLC		10,344		65,743
Carillion PLC		104,427		624,054
Carpetright PLC		8,793		108,556
Castings PLC		7,764		37,853
Catlin Group, Ltd.		85,047		505,544
Centaur Media PLC		37,860		49,603
Charles Stanley Group PLC		5,789		22,530
Charles Taylor Consulting PLC		5,241		23,187
Charter PLC		22,903		395,730
Chemring Group PLC		8,354		354,196
Chesnara PLC		28,486		70,619
Chime Communications PLC		5,000		10,026
Chloride Group PLC		46,548		211,876
Chrysalis Group PLC *		7,473		13,145
Clarkson PLC		3,067		57,447
Clinton Cards PLC		33,476		23,646
Close Brothers Group PLC		47,653		546,053
Collins Stewart PLC		49,196		88,405
Colt Telecom Group PLC *		73,320		172,216
Communisis PLC		29,820		33,827
Computacenter PLC		34,471		78,699
Connaught PLC		30,235		219,794

 

The accompanying notes are an integral part of the financial statements.

205

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount			Value
COMMON STOCKS (continued)
United Kingdom (continued)
Corin Group PLC		4,524		$	11,581
Costain Group PLC		147,453			69,730
Cranswick PLC		14,947			170,524
Creston PLC		10,587			8,940
Croda International PLC		34,453			433,878
CSR PLC *		39,854			238,188
D.S. Smith PLC		179,314			418,577
Dairy Crest Group PLC		46,378			395,090
Dana Petroleum PLC *		18,206			498,428
Davis Service Group PLC		55,047			341,134
Dawson Holdings PLC		18,937			22,565
De La Rue PLC		37,126			594,037
Debenhams PLC		317,058			286,139
Dechra Pharmaceuticals PLC		20,895			157,627
Delta PLC		30,141			63,264
Detica Group PLC		28,318			227,419
Development Securities PLC		9,003			59,145
Devro PLC		33,835			50,286
Dicom Group PLC		14,754			54,737
Dignity PLC		21,714			294,989
Dimension Data Holdings PLC		442,473			425,267
Diploma PLC		20,438			59,813
Dixons Group PLC		555,169			498,855
Domino Printing Sciences PLC		29,115			156,206
DTZ Holdings PLC		19,551			35,468
Dunelm Group PLC		6,499			18,402
E2V Technologies PLC		13,926			67,905
Electrocomponents PLC		133,547			419,684
Elementis PLC		144,030			220,800
Emerald Energy PLC *		6,316			48,585
Ennstone PLC		77,985			21,679
Enodis PLC		69,220			404,983
Entertainment Rights PLC *		92,761			15,549
Euromoney Institutional Investor PLC		19,007			127,394
Evolution Group PLC		61,725			109,371
F&C Asset Management PLC		110,863			195,890
Fenner PLC		51,492			213,311
Filtrona PLC		77,980			256,083
Filtronic PLC *		7,589			11,966
Findel PLC		15,671	��		52,508
Forth Ports PLC		10,700			335,471
Fortune Oil PLC *		359,509			68,810
French Connection Group PLC		17,888			20,165
Fuller Smith & Turner PLC		8,112			64,323
Future PLC		44,714			21,803
Galiform PLC		112,844			68,686
Galliford Try PLC		63,253			74,476
Game Group PLC		182,118			893,748
Genus PLC		16,764			243,760
Go-Ahead Group PLC		10,036			355,207
Goldshield Group PLC		6,425			30,278
Grafton Group PLC *		85,264			469,597
Greene King PLC		27,045			263,386
Greggs PLC		2,083			134,499
Halfords Group PLC		59,177			316,769
Halma PLC		98,642			361,615

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Hampson Industries PLC		22,043	$	70,866
Hansard Global PLC		11,952		35,193
Hardy Oil & Gas PLC *		12,212		105,924
Hardy Underwriting Bermuda, Ltd.		7,824		31,885
Hays PLC		202,195		350,785
Headlam Group PLC		26,325		159,228
Helical Bar PLC		23,786		138,621
Helphire PLC		34,529		53,610
Helphire PLC *		10,156		0
Henderson Group PLC		193,512		456,970
Henry Boot PLC		22,990		38,764
Highway Insurance Holdings PLC		55,651		74,514
Hikma Pharmaceuticals PLC		31,690		241,010
Hill & Smith Holdings PLC		19,511		119,174
Hiscox PLC		125,349		564,787
HMV Group PLC		132,768		319,315
Hochschild Mining PLC		27,852		127,589
Hogg Robinson Group PLC		39,788		36,511
Holidaybreak PLC		9,477		73,507
Homeserve PLC		37,619		986,736
Hunting PLC		26,412		428,501
Huntsworth PLC		20,523		23,288
Hyder Consulting PLC		9,707		64,531
IG Group Holdings PLC		78,045		490,999
Imagination Technologies Group PLC *		42,827		55,552
IMI PLC		57,726		524,452
Imperial Energy Corp. PLC *		26,019		553,651
Inchcape PLC		24,252		113,852
Informa PLC		84,511		654,358
Innovation Group PLC		119,179		34,775
Intec Telecom Systems PLC *		40,144		31,466
Intermediate Capital Group PLC		26,851		674,629
International Personal Finance PLC		80,239		452,595
Interserve PLC		43,366		331,382
Intertek Group PLC		26,185		468,060
ITE Group PLC		55,431		167,675
J.D. Wetherspoon PLC		24,171		116,043
James Fisher & Sons PLC		11,043		117,743
Jardine Lloyd Thompson Group PLC		49,547		407,632
JJB Sports PLC		64,418		149,242
JKX Oil & Gas PLC		56,800		447,902
John Menzies PLC		7,960		51,220
Johnston Press PLC		162,592		138,668
Keller Group PLC		19,354		278,090
Kesa Electricals PLC		163,292		479,550
Kier Group PLC		10,986		230,692
Kingston Communications PLC		123,424		87,843
Laird Group PLC		48,620		335,890
Laura Ashley Holdings PLC		68,094		24,825
Lavendon Group PLC		4,967		24,808
Liontrust Asset Management PLC		5,127		23,736
Logica PLC		241,627		588,033
Lookers PLC		35,795		36,297
Low & Bonar PLC		45,266		84,763
LSL Property Services PLC		7,930		10,119
Luminar Group Holdings PLC		14,299		62,171

 

The accompanying notes are an integral part of the financial statements.

206

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
M.J. Gleeson Group PLC		11,305	$	33,019
Management Consulting Group PLC		104,375		63,767
Manganese Bronze Holdings PLC		3,263		22,156
Marshalls PLC		38,912		118,082
Marston’s PLC		71,152		253,685
McBride PLC		26,220		55,483
Medusa Mining, Ltd. *		31,637		28,295
Melrose PLC *		9,458		27,830
Melrose Resources PLC		17,369		129,301
Metalrax Group PLC		29,412		8,444
Michael Page International PLC		81,821		545,140
Micro Focus International PLC		30,657		170,742
Millennium & Copthorne Hotels PLC		56,178		316,084
Minerva PLC *		48,210		109,524
Misys PLC		137,007		417,337
Mitie Group PLC		86,322		351,298
Morgan Crucible Company PLC		71,096		297,144
Morgan Sindall PLC		13,744		148,031
Morse PLC		17,420		12,351
Mothercare PLC		27,714		204,906
Mouchel Parkman PLC		27,771		201,111
MWB Group Holdings PLC *		24,660		45,176
N. Brown Group PLC		53,451		204,411
National Express Group PLC		37,539		709,018
New Star Asset Management Group, Ltd.		18,154		34,657
Northern Foods PLC		153,388		181,681
Northgate PLC		23,512		147,462
Northumbrian Water Group PLC		65,840		369,372
Novae Group PLC		16,766		91,164
Oxford Biomedica PLC *		90,000		18,046
Oxford Instruments PLC		8,354		33,905
Pace Micro Technology PLC *		44,430		72,264
Paypoint PLC		11,801		136,769
Pendragon PLC		119,021		20,681
Phoenix IT Group, Ltd. *		9,852		42,844
Photo-Me International PLC		22,753		6,014
Pinewood Shepperton PLC		8,060		28,335
Premier Farnell PLC		95,089		337,842
Premier Foods PLC		134,963		213,294
Premier Oil PLC *		22,418		512,814
Protherics PLC *		91,365		79,790
Provident Financial PLC		36,970		610,337
Psion PLC		27,316		45,894
Punch Taverns PLC		60,285		318,284
PV Crystalox Solar PLC *		27,564		88,903
PZ Cussons PLC		84,273		267,349
Qinetiq PLC		170,301		696,156
Quintain Estates & Development PLC		40,357		139,002
Rank Group PLC		117,546		157,202
Rathbone Brothers PLC		10,169		167,404
Raymarine PLC		13,480		30,453
REA Holdings PLC		2,127		18,268
Redrow PLC		47,467		147,897
Regus Group PLC		198,278		268,497
Renishaw PLC		11,721		178,673
Rensburg Sheppards PLC		4,945		43,477

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Restaurant Group PLC		47,761	$	121,018
Ricardo PlC		8,570		45,017
Rightmove PLC		14,759		82,149
RM PLC		13,965		43,340
Robert Walters PLC		17,416		41,168
Robert Wiseman Dairies PLC		9,457		53,095
ROK PLC		33,519		53,768
Rotork PLC		23,227		462,992
Royalblue Group PLC		5,481		93,616
RPC Group PLC		19,627		54,557
RPS Group PLC		59,899		326,682
Salamander Energy PLC *		26,350		129,520
Salamander Energy PLC *		3,984		0
Savills PLC		40,787		212,796
SCI Entertainment Group PLC *		24,546		14,640
Scott Wilson Group PLC		18,538		63,433
SDL PLC *		16,966		112,597
Senior PLC		136,652		274,665
Severfield Rowen PLC		13,069		57,829
Shanks Group PLC		68,152		272,163
Shore Capital Group PLC		82,607		56,225
SIG PLC		44,924		442,720
Signet Group PLC, SADR		17,424		200,724
Signet Group PLC		394,352		450,234
Skyepharma PLC *		127,235		9,277
SMG PLC *		120,280		20,456
Smiths News PLC		27,259		39,901
Soco International PLC *		12,424		340,482
Southern Cross Healthcare, Ltd.		50,751		140,268
Spectris PLC		34,386		519,186
Speedy Hire PLC		16,956		144,232
Spirax-Sarco Engineering PLC		28,330		571,147
Spirent Communications PLC, ADR		1,208		6,825
Spirent Communications PLC		174,932		253,447
Sportech PLC *		11,390		17,077
Sports Direct International		54,705		75,073
Spring Group PLC		29,466		20,922
SSL International PLC		51,566		444,155
St James’s Place PLC		59,269		240,211
St. Ives Group PLC		24,755		75,358
St. Modwen Properties PLC		37,749		207,961
Stagecoach Group PLC		78,051		453,099
Sthree PLC		28,317		102,999
Taylor Nelson Sofres PLC		82,749		412,602
Taylor Woodrow PLC		330,627		324,946
TDG PLC		11,424		51,384
Ted Baker PLC		5,384		34,831
Telecom Plus PLC		262		1,600
Thorntons PLC		10,805		22,650
Thus Group PLC *		17,980		58,667
Tomkins PLC, SADR		21,690		237,289
Topps Tiles PLC		25,009		26,964
Town Centre Securities PLC		4,430		16,039
Travis Perkins PLC		36,335		442,494
Tribal Group PLC		11,250		28,708
Trinity Mirror PLC		85,363		166,759

 

The accompanying notes are an integral part of the financial statements.

207

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
TT electronics PLC		41,687	$	77,428
Tullett Prebon PLC		49,804		399,894
UK Coal PLC *		38,818		305,171
Ultra Electronics Holdings PLC		20,380		512,143
Umeco PLC		12,886		111,340
Uniq PLC		31,252		50,917
United Business Media, Ltd.		45,420		490,900
UTV Media PLC		11,361		29,356
Vectura Group PLC *		86,275		84,407
Venture Production PLC		35,579		534,117
Vernalis PLC *		21,281		1,734
Victrex PLC		29,565		438,307
Vislink PLC		22,958		10,884
Vitec Group PLC		8,660		63,022
VP PLC *		664		3,026
VT Group PLC		43,395		487,133
W.S. Atkins PLC		25,254		426,549
Weir Group PLC		33,017		553,718
WH Smith PLC		34,882		243,771
White Young Green PLC		9,034		39,827
William Hill PLC		75,121		386,437
Wilmington Group PLC		8,311		30,489
Wincanton PLC		37,919		178,338
Wolfson Microelectronics PLC *		17,835		38,387
Woolworths Group PLC		94,167		12,433
WSP Group PLC		16,690		157,388
Xaar PLC		17,577		35,853
Xchanging PLC		58,411		270,009
Yell Group PLC		244,658		479,526
Yule Catto & Company PLC		83,739		222,981
				66,716,501
United States - 0.46%
Arawak Energy, Ltd. *		9,400		12,394
Arsenal Energy, Inc. *		12,500		8,358
Aurora Oil and Gas, Ltd. *		74,000		20,016
Berens Energy, Ltd. *		14,100		13,678
Cadence Energy, Inc. *		14,200		90,271
Calian Technologies, Ltd.		500		5,877
Canadian Gold Hunter Corp. *		4,900		7,384
Candente Resource Corp. *		8,600		6,965
Cardero Resource Corp. *		13,100		25,292
Cinch Energy Corp. *		11,600		20,211
City Telecom HK, Ltd.		1,717		8,156
Computer Modelling Group, Ltd.		800		7,911
Eastmain Resources, Inc. *		21,300		25,075
Easyhome, Ltd.		700		10,746
Fairborne Energy, Ltd. *		21,600		276,255
Far West Mining, Ltd. *		4,700		15,847
Formation Capital Corp. *		29,000		13,383
Fortune Minerals, Ltd. *		3,334		4,082
GBS Gold International, Inc. *		30,800		6,091
Glacier Media, Inc. *		22,800		82,671
Glentel, Inc.		4,200		37,973
Globestar Mining Corp. *		12,700		15,310
Great Panther Resources, Ltd. *		22,200		17,144
Great Plains Exploration, Inc. *		41,500		26,187

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United States (continued)
Hemisphere GPS, Inc. *		10,400	$	30,168
Hillsborough Resources, Ltd. *		24,400		19,303
Inter-Citic Minerals, Inc. *		21,300		19,057
Intrinsyc Software International, Inc. *		15,509		5,404
Isotechnika, Inc. *		33,700		7,459
James Hardie Industries NV		2,458		48,668
Magellan Aerospace Corp. *		2,240		8,818
Marsulex, Inc.		4,700		57,013
Matrikon, Inc.		3,200		14,918
MDN, Inc. *		17,700		17,170
Midnight Oil Exploration, Ltd. *		5,400		12,053
Minco Silver Corp. *		7,600		12,168
MKS, Inc.		18,100		26,422
Open Range Energy Corp. *		5,000		21,285
Parkbridge Lifestyles Communities, Inc. *		9,830		49,992
Pelangio Mines, Inc. *		14,200		42,528
Profound Energy, Inc. *		15,380		53,884
Prometic Life Sciences, Inc. *		31,089		9,955
Pure Energy Services, Ltd. *		5,900		27,950
QGX, Ltd. *		4,000		18,535
Queenston Mining, Inc. *		16,000		33,302
Questerre Energy Corp. *		50,000		130,910
Redcorp Ventures, Ltd. *		9,000		1,102
Technicoil Corp. *		14,900		11,367
Tesco Corp. *		8,600		292,142
TUSK Energy Corp. *		19,200		35,984
Webtech Wireless, Inc. *		12,200		33,206
Westport Innovations, Inc. *		4,200		53,130
				1,851,170
TOTAL COMMON STOCKS (Cost $472,422,850)			$	401,593,391
PREFERRED STOCKS - 0.01%
Australia - 0.01%			��
Village Roadshow, Ltd. (k)		33,387		40,831
TOTAL PREFERRED STOCKS (Cost $81,756)			$	40,831
WARRANTS - 0.00%
Canada - 0.00%
Tembec, Inc. (Expiration Date 02/29/2012, Strike Price CAD 1.65) * (a)		609		275
Hong Kong - 0.00%
Asia Standard International Group (Expiration Date 09/06/2008, Strike Price HKD 0.106) *		312,262		0
(Expiration Date 12/31/2008) *		474,951		0
Golden Resorts Group, Ltd. (Expiration Date 06/09/2010, Strike Price HKD 0.35) *		100,000		229
Kantone Holdings, Ltd. (Expiration Date 01/08/2009, Strike Price HKD 0.81) *		129,806		166
Lippo, Ltd. *		3,125		401

 

The accompanying notes are an integral part of the financial statements.

208

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Small Company Fund (continued)
	Shares or Principal Amount		Value
WARRANTS (continued)
Hong Kong (continued)
Matsunichi Communication Holdings, Ltd. (Expiration Date 08/22/2010, Strike Price HKD 6.00) *		9,300	$	1,189
				1,985
Switzerland - 0.00%
Precious Woods Holding AG (Expiration Date 10/31/2008, Strike Price CHF 82.00) *		459		209
TOTAL WARRANTS (Cost $3,707)			$	2,469
RIGHTS - 0.04%
Austria - 0.00%
Austrian Airlines AG		13,651		0
France - 0.00%
LVL Medical Groupe SA (Expiration Date 06/02/2008, Strike Price EUR 1.00) *		3,125		46
Stef-TFE Group (Expiration Date 07/09/2008, Strike Price EUR 221.00) *		3,091		45
				91
Hong Kong - 0.00%
Burwill Holdings, Ltd. (Expiration Date 09/04/2008, Strike Price HKD 0.15) *		716,400		1,560
Singapore - 0.00%
Metro Holdings, Ltd. (Expiration Date 09/11/2008, Strike Price SGD 0.07) *		11,800		5,080
Sweden - 0.01%
RNB Retail & Brands AB (Expiration Date 09/18/2008, Strike Price SEK 6.00) *		20,600		22,195
Switzerland - 0.03%
Berner Kantonalbank (Expiration Date 08/19/2008, Strike Price CHF 100.00) *		1,072		129,479
TOTAL RIGHTS (Cost $40,628)			$	158,405
SHORT TERM INVESTMENTS - 0.99%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	4,015,816	$	4,015,816
TOTAL SHORT TERM INVESTMENTS (Cost $4,015,816)			$	4,015,816

 

International Small Company Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 1.02%		��
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $4,109,776 on 09/02/2008, collateralized by $4,130,000 Federal Farm Credit Bank, 5.375% due 03/11/2019 (valued at $4,191,950, including interest)	$	4,109,000	$	4,109,000
TOTAL REPURCHASE AGREEMENTS (Cost $4,109,000)			$	4,109,000
Total Investments (International Small Company Fund) (Cost $480,673,757) - 101.36%			$	409,919,912
Liabilities in Excess of Other Assets - (1.36)%				(5,486,199	)
TOTAL NET ASSETS - 100.00%			$	404,433,713

 

The portfolio had the following five top industry concentrations as of August 31, 2008 (as a percentage of total net assets):

Building Materials & Construction	5.49	%
Banking	4.72	%
Food & Beverages	4.33	%
Business Services	4.23	%
Crude Petroleum & Natural Gas	4.05	%

 

International Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 95.83%
Austria - 1.03%
Telekom Austria AG		685,030	$	14,724,424
Belgium - 0.99%
Belgacom SA		353,860		14,090,387
Canada - 0.47%
Biovail Corp.		606,300		6,623,733
China - 0.36%
China Telecom Corp., Ltd. (a)		10,143,589		5,161,958
Finland - 1.76%
Stora Enso Oyj, Series R		1,041,000		10,430,341
UPM-Kymmene Oyj		853,141		14,576,423
				25,006,764
France - 10.72%
AXA Group SA		863,786		27,561,201
France Telecom SA		1,397,501		41,205,269
Sanofi-Aventis SA		518,966		36,818,323
Thomson SA *		1,725,060		8,002,498
Total SA		375,252		26,956,651
Vivendi SA		315,560		12,191,026
				152,734,968
Germany - 7.41%
Bayerische Motoren Werke (BMW) AG		326,524		13,358,208
Deutsche Post AG		667,551		15,634,067
Infineon Technologies AG *		1,624,750		13,850,057

 

The accompanying notes are an integral part of the financial statements.

209

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
Muenchener Rueckversicherungs- Gesellschaft AG		122,646	$	19,041,633
SAP AG		394,750		22,117,684
Siemens AG		199,739		21,681,182
				105,682,831
Hong Kong - 1.46%
Hutchison Whampoa, Ltd.		2,243,620		20,828,502
Israel - 1.78%
Check Point Software Technologies, Ltd. *		1,038,260		25,426,987
Italy - 3.57%
Autogrill SpA (a)		546,133		6,796,215
Eni SpA		692,850		22,474,180
Mediaset SpA		943,260		6,848,380
UniCredito Italiano SpA		2,742,038		14,753,958
				50,872,733
Japan - 6.65%
Aiful Corp.		427,399		3,454,369
Mitsubishi UFJ Financial Group, Inc.		1,716,800		13,049,498
NGK Spark Plug Company, Ltd.		984,000		10,873,966
Olympus Optical Company, Ltd.		298,000		9,681,952
Promise Company, Ltd.		264,600		5,930,157
Sony Corp.		429,514		16,419,406
Toyota Motor Corp.		230,400		10,280,077
USS Company, Ltd.		364,570		25,078,512
				94,767,937
Netherlands - 5.38%
ING Groep NV		1,063,792		33,141,717
Koninklijke (Royal) Philips Electronics NV		537,666		17,468,836
Randstad Holdings NV		134,900		4,136,464
Reed Elsevier NV		1,312,088		21,938,227
				76,685,244
Norway - 2.22%
Aker Kvaerner ASA		230,850		5,281,629
Norske Skogindustrier ASA * (a)		1,791,884		9,769,868
Telenor ASA		1,054,271		16,569,826
				31,621,323
Singapore - 2.94%
Flextronics International, Ltd. *		1,590,010		14,182,889
Singapore Telecommunications, Ltd. (a)		6,653,000		16,420,053
Venture Corp., Ltd.		1,614,840		11,341,944
				41,944,886
South Korea - 3.16%
Kookmin Bank, SADR		218,431		11,970,019
KT Corp., SADR		181,994		3,705,398
Samsung Electronics Company, Ltd., GDR (h)		125,064		29,390,040
				45,065,457
Spain - 1.80%
Telefonica SA		1,037,699		25,639,996
Sweden - 2.30%
Ericsson (LM), Series B		1,652,914		18,868,442
Niscayah Group AB		2,955,338		5,315,916

 

International Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Sweden (continued)
Securitas AB, Series B		634,218	$	8,569,928
				32,754,286
Switzerland - 6.23%
Adecco SA		488,160		22,905,398
Nestle SA		426,070		18,772,468
Novartis AG		422,850		23,556,348
Swiss Re		203,243		12,501,152
UBS AG *		511,498		11,117,975
				88,853,341
Taiwan - 6.69%
Chunghwa Telecom Company, Ltd., ADR *		845,469		20,916,903
Compal Electronics, Inc., GDR (h)		3,013,359		13,198,512
Lite-On Technology Corp., GDR		1,154,110		11,417,378
Lite-On Technology Corp.		6,360,462		6,248,816
Mega Financial Holding Company, Ltd.		38,983,000		24,512,490
Taiwan Semiconductor Manufacturing Company, Ltd.		10,340,874		19,046,156
				95,340,255
United Kingdom - 26.88%
Aviva PLC		1,769,560		16,518,059
BAE Systems PLC		834,663		7,284,614
BP PLC		3,265,112		31,382,889
British Sky Broadcasting Group PLC		1,617,666		13,706,258
Centrica PLC		3,023,272		17,997,372
Compass Group PLC		3,316,857		22,073,338
GlaxoSmithKline PLC		1,558,185		36,665,407
Group 4 Securicor PLC		6,683,810		28,364,053
HBOS PLC		613,360		3,510,846
HSBC Holdings PLC		1,872,430		29,462,190
Kingfisher PLC		7,858,650		18,982,575
Marks & Spencer Group PLC		1,058,540		5,044,638
Old Mutual PLC		8,894,342		15,730,435
Pearson PLC		1,325,436		16,370,766
Persimmon PLC		2,419,510		16,377,560
Reed Elsevier PLC		106,368		1,215,684
Rentokil Initial PLC		5,303,917		7,012,481
Royal Bank of Scotland Group PLC		5,620,499		23,904,407
Royal Dutch Shell PLC, B Shares		797,033		27,407,182
Tesco PLC		1,125,680		7,802,502
Unilever PLC		239,731		6,430,088
Vodafone Group PLC		11,707,036		29,917,836
				383,161,180
United States - 2.03%
ACE, Ltd. *		405,496		21,333,145
Invesco, Ltd.		299,056		7,664,805
				28,997,950
TOTAL COMMON STOCKS (Cost $1,531,356,093)			$	1,365,985,142
SHORT TERM INVESTMENTS - 4.86%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	22,754,432	$	22,754,432

 

The accompanying notes are an integral part of the financial statements.

210

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

International Value Fund (continued)
	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS (continued)
Paribas Corp. 2.02% due 09/02/2008	$	46,515,000	$	46,515,000
TOTAL SHORT TERM INVESTMENTS (Cost $69,269,432)			$	69,269,432
Total Investments (International Value Fund) (Cost $1,600,625,525) - 100.69%			$	1,435,254,574
Liabilities in Excess of Other Assets - (0.69)%				(9,822,579	)
TOTAL NET ASSETS - 100.00%			$	1,425,431,995

 

The portfolio had the following five top industry concentrations as of August 31, 2008 (as a percentage of total net assets):

Telecommunications Equipment & Services	14.54	%
Insurance	10.23	%
Electronics	6.79	%
Financial Services	5.77	%
Pharmaceuticals	5.62	%

 

Investment Quality Bond Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 31.94%
Treasury Inflation Protected
Securities (d) - 7.89%
2.375% due 04/15/2011 to 01/15/2025	$	15,424,738	$	15,972,841
U.S. Treasury Bonds - 17.81%
6.00% due 02/15/2026		1,850,000		2,200,488
6.25% due 08/15/2023		1,575,000		1,899,105
7.25% due 08/15/2022		1,375,000		1,794,161
7.875% due 02/15/2021		9,250,000		12,490,386
8.125% due 08/15/2021		1,600,000		2,211,750
8.125% due 08/15/2019 ****		3,060,000		4,141,759
8.75% due 08/15/2020		7,285,000		10,390,799
8.875% due 02/15/2019		662,000		932,282
				36,060,730
U.S. Treasury Notes - 6.24%
6.50% due 02/15/2010		11,900,000		12,641,894
TOTAL U.S. TREASURY OBLIGATIONS (Cost $62,089,364)			$	64,675,465
U.S. GOVERNMENT AGENCY OBLIGATIONS - 6.29%
Federal Home Loan Bank - 1.04%
5.80% due 09/02/2008		2,105,000		2,105,599
Federal Home Loan Mortgage Corp. - 1.43%
4.00% due 11/15/2019		135,265		124,907
5.00% due 03/01/2019 to 12/01/2019		628,157		629,710
6.50% due 04/01/2029 to 08/01/2034		24,625		25,489
6.625% due 09/15/2009		2,030,000		2,105,787
7.50% due 06/01/2010 to 05/01/2028		6,722		7,151
				2,893,044
Federal National Mortgage
Association - 3.64%
4.654% due 05/01/2013		179,620		179,642

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal National Mortgage
Association (continued)
4.86% due 01/01/2015	$	2,892,806	$	2,864,131
4.917% due 02/01/2013		261,475		264,546
5.00% due 03/01/2019 to 06/01/2019		1,233,331		1,239,562
5.50% due 08/01/2035 to 11/01/2035		1,192,705		1,181,057
5.629% due 12/01/2011		206,496		212,509
5.953% due 11/01/2011		124,859		130,210
6.055% due 05/01/2012		168,287		175,602
6.085% due 10/01/2011		142,709		148,325
6.095% due 03/01/2012		84,885		89,129
6.50% due 09/01/2031		106		111
6.625% due 09/15/2009		850,000		881,716
7.00% due 06/01/2029		396		414
				7,366,954
Government National Mortgage
Association - 0.14%
6.00% due 09/15/2008 to 04/15/2035		74,997		76,792
6.50% due 06/15/2028 to 08/15/2034		52,492		54,774
7.00% due 11/15/2031 to 10/15/2034		144,225		152,315
8.00% due 07/15/2030 to 10/15/2030		3,527		3,837
				287,718
Housing & Urban Development - 0.04%
7.498% due 08/01/2011		81,000		83,908
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $12,784,124)			$	12,737,223

 

FOREIGN GOVERNMENT OBLIGATIONS - 0.86%
Brazil - 0.86%
Federative Republic of Brazil 6.00% due 08/15/2010	BRL	800,000	823,447
10.00% due 01/01/2017		1,750,000	909,055
			1,732,502

 

TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $1,699,345)			$	1,732,502
CORPORATE BONDS - 39.10%
Advertising - 0.00%
R.H. Donnelley Corp.
6.875% due 01/15/2013	$	5,000		2,750
R.H. Donnelley Corp., Series A-2
6.875% due 01/15/2013		10,000		5,500
				8,250
Aerospace - 0.06%
Goodrich Corp.
7.10% due 11/15/2027		115,000		122,229
Agriculture - 0.33%
Cargill, Inc.
5.60% due 09/15/2012 (h)		635,000		642,507
Case New Holland, Inc.
7.125% due 03/01/2014		10,000		9,725
Mosaic Company
7.375% due 12/01/2014 (h)		5,000		5,171
7.625% due 12/01/2016 (h)		5,000		5,258
				662,661

 

The accompanying notes are an integral part of the financial statements.

211

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Air Travel - 0.31%
American Airlines Pass Through Trust 2003-01
3.857% due 01/09/2012	$	18,532	$	17,058
Continental Airlines, Inc., Series 974A
6.90% due 01/02/2018		108,989		95,910
Continental Airlines, Inc., Series 981A
6.648% due 09/15/2017		218,634		194,585
Continental Airlines, Inc., Series A
5.983% due 04/19/2022		30,000		24,525
Continental Airlines, Inc., Series ERJ1
9.798% due 04/01/2021		13,449		9,414
Southwest Airlines Company, Series 07-1
6.15% due 08/01/2022		299,690		285,190
				626,682
Aluminum - 0.03%
Alcan, Inc.
6.45% due 03/15/2011		59,000		61,163
Novelis, Inc.
7.25% due 02/15/2015		3,000		2,782
				63,945
Auto Parts - 0.03%
TRW Automotive, Inc.
7.00% due 03/15/2014 (h)		75,000		66,000
Auto Services - 0.01%
Avis Budget Car Rental LLC
7.625% due 05/15/2014		15,000		10,650
KAR Holdings, Inc.
10.00% due 05/01/2015		10,000		8,425
United Rentals North America, Inc.
6.50% due 02/15/2012		10,000		8,925
				28,000
Automobiles - 0.09%
DaimlerChrysler NA Holding Corp.
8.50% due 01/18/2031		175,000		179,950
Banking - 3.64%
Bank of America Corp.
4.375% due 12/01/2010		436,000		437,260
5.42% due 03/15/2017		1,800,000		1,600,006
5.65% due 05/01/2018		125,000		115,314
Chase Manhattan Corp.
7.00% due 11/15/2009		135,000		138,758
Citicorp
6.375% due 11/15/2008		231,000		231,997
First Republic Bank of San Francisco
7.75% due 09/15/2012		111,000		112,387
First Union National Bank
7.80% due 08/18/2010		350,000		357,480
HBOS PLC
6.00% due 11/01/2033 (h)		210,000		152,150
6.75% due 05/21/2018 (h)		175,000		158,050
HSBC Bank USA NA, BKNT
7.00% due 01/15/2039		250,000		247,987
HSBC Holdings PLC
6.80% due 06/01/2038		850,000		804,433
National Australia Bank, Ltd.
8.60% due 05/19/2010		23,000		24,190

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
NBD Bancorp
8.25% due 11/01/2024	$	270,000	$	304,056
Republic New York Corp.
9.50% due 04/15/2014		135,000		144,934
Royal Bank of Scotland Group PLC
6.40% due 04/01/2009		696,000		703,543
RSHB Capital SA for OJSC Russian Agricultural
Bank
6.299% due 05/15/2017 (h)		165,000		146,520
7.125% due 01/14/2014 (h)		130,000		126,659
7.175% due 05/16/2013		250,000		245,425
Sanwa Bank, Ltd., New York Branch
7.40% due 06/15/2011		300,000		317,487
Sovereign Bancorp, Inc.
4.80% due 09/01/2010		30,000		26,722
VTB Capital SA
6.25% due 07/02/2035 (h)		150,000		133,313
Wachovia Corp.
5.75% due 06/15/2017		385,000		327,576
Wachovia Corp., MTN
5.50% due 05/01/2013		570,000		523,356
				7,379,603
Broadcasting - 0.60%
British Sky Broadcasting Group PLC
5.625% due 10/15/2015 (h)		131,000		125,519
CanWest Media, Inc.
8.00% due 09/15/2012		10,000		8,588
Clear Channel Communications, Inc.
7.65% due 09/15/2010		400,000		382,000
Liberty Media Corp.
5.70% due 05/15/2013		4,000		3,528
7.75% due 07/15/2009		90,000		91,020
7.875% due 07/15/2009		9,000		9,108
8.25% due 02/01/2030		2,000		1,690
News America Holdings, Inc.
7.75% due 01/20/2024		453,000		487,428
News America, Inc.
5.30% due 12/15/2014		100,000		98,812
				1,207,693
Building Materials & Construction - 0.07%
D.R. Horton, Inc.
9.75% due 09/15/2010		14,000		13,720
K Hovnanian Enterprises, Inc.
11.50% due 05/01/2013 (h)		10,000		10,213
SCL Terminal Aereo Santiago SA
6.95% due 07/01/2012 (h)		108,823		114,867
Texas Industries, Inc.
7.25% due 07/15/2013		10,000		9,350
				148,150
Business Services - 0.07%
Deluxe Corp.
7.375% due 06/01/2015		50,000		43,375
Harland Clarke Holdings Corp.
9.50% due 05/15/2015		5,000		3,925
IKON Office Solutions, Inc.
7.75% due 09/15/2015		5,000		5,388

 

The accompanying notes are an integral part of the financial statements.

212

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Business Services (continued)
Sungard Data Systems, Inc.
9.125% due 08/15/2013	$	13,000	$	13,195
Thomson Reuters Corp.
6.50% due 07/15/2018		75,000		75,950
				141,833
Cable & Television - 2.56%
Cablevision Systems Corp., Series B
8.00% due 04/15/2012		13,000		12,870
Comcast Corp.
5.70% due 05/15/2018		275,000		261,335
5.85% due 11/15/2015		600,000		587,755
Cox Communications, Inc.
5.875% due 12/01/2016 (h)		350,000		342,926
7.125% due 10/01/2012		458,000		481,069
CSC Holdings, Inc.
7.625% due 07/15/2018		21,000		19,530
DirecTV Holdings LLC
6.375% due 06/15/2015		15,000		14,137
HSN, Inc.
11.25% due 08/01/2016 (h)		5,000		5,062
LIN Television Corp.
6.50% due 05/15/2013		5,000		4,100
LIN Television Corp., Series B
6.50% due 05/15/2013		7,000		5,740
Mediacom Broadband LLC
8.50% due 10/15/2015		27,000		24,638
Mediacom LLC/Mediacom Capital Corp.
7.875% due 02/15/2011		5,000		4,737
Quebecor Media, Inc.
7.75% due 03/15/2016		15,000		14,100
7.75% due 03/15/2016		5,000		4,700
Rogers Cable, Inc.
6.25% due 06/15/2013		130,000		132,279
Shaw Communications, Inc.
8.25% due 04/11/2010		4,000		4,105
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		3,000		2,932
TCI Communications, Inc.
7.875% due 02/15/2026		150,000		157,815
8.75% due 08/01/2015		183,000		199,608
Time Warner Cable, Inc.
5.85% due 05/01/2017		815,000		777,978
6.55% due 05/01/2037		150,000		138,257
Time Warner Companies, Inc.
7.25% due 10/15/2017		60,000		60,136
Time Warner, Inc.
6.75% due 04/15/2011		150,000		153,500
7.70% due 05/01/2032		602,000		607,281
Viacom, Inc.
6.125% due 10/05/2017		600,000		564,556
6.25% due 04/30/2016		252,000		240,000
6.625% due 05/15/2011		175,000		175,740
7.875% due 07/30/2030		195,000		177,585
				5,174,471
Cellular Communications - 0.47%
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		94,000		100,548
8.125% due 05/01/2012		56,000		61,540

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cellular Communications (continued)
AT&T Wireless Services, Inc. (continued)
8.75% due 03/01/2031	$	397,000	$	474,206
Cingular Wireless LLC
7.125% due 12/15/2031		67,000		68,583
Rogers Wireless, Inc.
9.625% due 05/01/2011		27,000		29,771
Vodafone Group PLC
7.75% due 02/15/2010		211,000		220,762
				955,410
Chemicals - 0.35%
Agrium, Inc.
7.125% due 05/23/2036		225,000		239,369
Cytec Industries, Inc.
4.60% due 07/01/2013		170,000		160,347
5.50% due 10/01/2010		105,000		104,957
6.00% due 10/01/2015		200,000		195,698
IMC Global, Inc.
7.30% due 01/15/2028		3,000		2,898
Terra Capital, Inc., Series B
7.00% due 02/01/2017		5,000		4,862
				708,131
Coal - 0.06%
Peabody Energy Corp.
6.875% due 03/15/2013		11,000		11,137
7.375% due 11/01/2016		100,000		103,000
				114,137
Commercial Services - 0.01%
Aramark Services, Inc.
8.50% due 02/01/2015		15,000		15,112
Rental Service Corp.
9.50% due 12/01/2014		10,000		8,000
Ticketmaster
10.75% due 08/01/2016 (h)		5,000		5,125
				28,237
Computers & Business Equipment - 0.16%
Unisys Corp.
6.875% due 03/15/2010		10,000		9,525
Xerox Corp.
5.50% due 05/15/2012		170,000		168,854
6.40% due 03/15/2016		125,000		123,429
7.20% due 04/01/2016		15,000		15,249
				317,057
Containers & Glass - 0.08%
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		16,000		16,480
Pactiv Corp.
5.875% due 07/15/2012		135,000		134,775
Stone Container Finance
7.375% due 07/15/2014		5,000		4,025
				155,280
Correctional Facilities - 0.05%
Corrections Corp. of America
6.25% due 03/15/2013		10,000		9,800
6.75% due 01/31/2014		100,000		99,250
				109,050

 

The accompanying notes are an integral part of the financial statements.

213

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas - 0.61%
Atmos Energy Corp.
6.35% due 06/15/2017	$	75,000	$	73,932
Burlington Resources Finance Company
7.40% due 12/01/2031		309,000		353,459
Canadian Natural Resources, Ltd.
5.15% due 02/01/2013		150,000		149,281
6.45% due 06/30/2033		37,000		35,377
Chesapeake Energy Corp.
6.50% due 08/15/2017		20,000		18,600
6.625% due 01/15/2016		97,000		90,937
7.50% due 09/15/2013		3,000		3,030
7.625% due 07/15/2013		10,000		10,125
EnCana Corp.
5.90% due 12/01/2017		450,000		441,674
OPTI Canada, Inc.
7.875% due 12/15/2014		10,000		9,887
PetroHawk Energy Corp.
9.125% due 07/15/2013		15,000		14,925
Plains Exploration & Production Company
7.75% due 06/15/2015		10,000		9,525
SandRidge Energy, Inc.
8.00% due 06/01/2018 (h)		5,000		4,688
Southwestern Energy Company
7.50% due 02/01/2018 (h)		10,000		10,225
				1,225,665
Domestic Oil - 0.18%
Delta Petroleum Corp.
7.00% due 04/01/2015		25,000		19,625
Motiva Enterprises LLC
5.20% due 09/15/2012 (h)		148,000		151,405
Range Resources Corp.
7.50% due 05/15/2016		10,000		9,900
Valero Energy Corp.
8.75% due 06/15/2030		162,000		171,455
Whiting Petroleum Corp.
7.00% due 02/01/2014		3,000		2,850
7.25% due 05/01/2013		3,000		2,880
				358,115
Drugs & Health Care - 0.01%
Allegiance Corp.
7.00% due 10/15/2026		13,000		13,038
Rite Aid Corp.
10.375% due 07/15/2016		5,000		4,788
				17,826
Electrical Utilities - 3.85%
Carolina Power & Light Company
6.50% due 07/15/2012		456,000		479,369
CenterPoint Energy, Inc.
6.50% due 05/01/2018		560,000		547,639
CMS Energy Corp.
8.50% due 04/15/2011		4,000		4,206
Commonwealth Edison Company
5.95% due 08/15/2016		125,000		124,729
6.15% due 03/15/2012		92,000		94,718
Dominion Resources, Inc.
6.40% due 06/15/2018		395,000		406,105
7.00% due 06/15/2038		150,000		154,412

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
Duke Energy Corp.
5.65% due 06/15/2013	$	600,000	$	609,421
Dynegy Holdings, Inc.
7.125% due 05/15/2018		15,000		13,050
Edison Mission Energy
7.75% due 06/15/2016		20,000		20,000
Enel Finance International SA
6.80% due 09/15/2037 (h)		555,000		564,332
Exelon Generation Company, LLC
6.95% due 06/15/2011		185,000		192,137
Georgia Power Company
5.25% due 12/15/2015		600,000		599,447
Israel Electric Corp., Ltd.
7.25% due 01/15/2019 (h)		475,000		479,621
Midamerican Energy Holdings
6.125% due 04/01/2036		250,000		237,481
New York State Electric & Gas Corp.
5.75% due 05/01/2023		74,000		68,679
Northern States Power Company
6.25% due 06/01/2036		125,000		125,511
6.50% due 03/01/2028		67,000		69,117
NSTAR
8.00% due 02/15/2010		270,000		285,375
Ohio Edison Company
6.875% due 07/15/2036		150,000		143,842
Old Dominion Electric Cooperative
6.25% due 06/01/2011		141,000		145,188
Potomac Electric Power Company
6.50% due 11/15/2037		250,000		247,772
PSEG Power LLC
8.625% due 04/15/2031		154,000		186,855
Puget Sound Energy, Inc.
7.00% due 03/09/2029		54,000		55,413
Reliant Energy, Inc.
6.75% due 12/15/2014		10,000		10,075
Southern California Edison Company
6.00% due 01/15/2034		326,000		325,634
Taqa Abu Dhabi National Energy Company
6.50% due 10/27/2036 (h)		475,000		416,192
TXU Corp., Series P
5.55% due 11/15/2014		26,000		20,275
Union Electric Company
6.40% due 06/15/2017		950,000		942,724
Wisconsin Electric Power Company
6.50% due 06/01/2028		94,000		96,439
Wisconsin Energy Corp.
6.20% due 04/01/2033		138,000		135,973
				7,801,731
Electronics - 0.11%
Avnet, Inc.
6.625% due 09/15/2016		200,000		197,734
L-3 Communications Corp., Series B
6.375% due 10/15/2015		10,000		9,575
Sanmina-SCI Corp.
5.5262% due 06/15/2010 (b)(h)		9,000		8,910
				216,219

 

The accompanying notes are an integral part of the financial statements.

214

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Energy - 0.36%
Abu Dhabi National Energy Company
5.875% due 10/27/2016 (h)	$	110,000	$	103,155
Aquila, Inc.
7.95 due 02/01/2011		10,000		10,360
11.875% due 07/01/2012		20,000		23,200
Dynegy Holdings, Inc.
8.375% due 05/01/2016		10,000		9,787
Midamerican Funding LLC
6.75% due 03/01/2011		260,000		275,081
Mirant North America LLC
7.375% due 12/31/2013		20,000		19,850
Nevada Power Company
6.50% due 08/01/2018		150,000		152,573
NRG Energy, Inc.
7.25% due 02/01/2014		25,000		24,656
7.375% due 01/15/2017		5,000		4,887
XTO Energy, Inc.
6.75% due 08/01/2037		120,000		113,183
				736,732
Financial Services - 10.11%
AGFC Capital Trust I
6.00% due 01/15/2067 (b)(h)		170,000		114,616
American Financial Group, Inc.
7.125% due 04/15/2009		245,000		248,498
American General Finance Corp.
5.375% due 10/01/2012		154,000		133,619
Arch Western Finance LLC
6.75% due 07/01/2013		26,000		25,935
Associates Corp. of North America
8.55% due 07/15/2009		81,000		83,531
Bear Stearns Companies, Inc.
5.35% due 02/01/2012		80,000		79,518
6.40% due 10/02/2017		105,000		103,219
6.95% due 08/10/2012		345,000		358,345
Capital One Capital IV
6.745% due 02/17/2037 (b)		125,000		86,195
Capmark Financial Group, Inc.
5.875% due 05/10/2012		330,000	��	212,964
6.30% due 05/10/2017		90,000		53,100
CIT Group, Inc.
5.00% due 02/01/2015		300,000		211,219
7.625% due 11/30/2012		300,000		254,653
Citigroup Capital XXI
8.30% due 12/21/2057 (b)		370,000		333,990
Citigroup, Inc.
4.875% due 05/07/2015		286,000		257,762
5.50% due 08/27/2012		900,000		871,410
6.50% due 08/19/2013		600,000		600,655
6.875% due 03/05/2038		425,000		409,701
Countrywide Financial Corp.
4.50% due 06/15/2010		70,000		65,951
5.80% due 06/07/2012		135,000		122,195
Discover Financial Services
6.45% due 06/12/2017		300,000		222,714
Equitable Companies, Inc.
7.00% due 04/01/2028		235,000		228,172
Erac USA Finance Company
8.00% due 01/15/2011 (h)		534,000		544,654

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Farmers Exchange Capital
7.05% due 07/15/2028 (h)	$	350,000	$	292,682
Ford Motor Credit Company
7.00% due 10/01/2013		21,000		15,215
GATX Financial Corp.
5.50% due 02/15/2012		200,000		201,089
General Electric Capital Corp.
4.80% due 05/01/2013		475,000		469,683
6.125% due 02/22/2011		67,000		70,247
6.75% due 03/15/2032		934,000		943,890
General Motors Acceptance Corp.
8.00% due 11/01/2031		30,000		16,180
Goldman Sachs Group, Inc.
5.45% due 11/01/2012		340,000		338,573
6.15% due 04/01/2018		750,000		717,425
6.75% due 10/01/2037		1,615,000		1,420,963
6.875% due 01/15/2011		208,000		215,837
International Lease Finance Corp.
5.625% due 09/15/2010		170,000		161,137
5.875% due 05/01/2013		250,000		219,796
6.375% due 03/25/2013		145,000		129,670
Janus Capital Group, Inc.
6.25% due 06/15/2012		100,000		96,851
JP Morgan Chase & Company
5.15% due 10/01/2015		200,000		188,826
5.375% due 10/01/2012		760,000		754,058
6.00% due 01/15/2018		555,000		537,452
JP Morgan Chase Capital XV
5.875% due 03/15/2035		567,000		439,327
Lazard Group LLC
6.85% due 06/15/2017		660,000		567,461
Lehman Brothers Holdings, Inc.
7.00% due 09/27/2027		635,000		566,223
7.50% due 05/11/2038		280,000		247,965
Lehman Brothers Holdings, Inc., MTN
6.20% due 09/26/2014		900,000		843,068
Merrill Lynch & Company, Inc.
5.45% due 02/05/2013		150,000		139,895
6.40% due 08/28/2017		740,000		671,273
7.75% due 05/14/2038		325,000		291,743
Merrill Lynch & Company, Inc., MTN
6.875% due 04/25/2018		425,000		391,429
Mizuho Financial Group, Cayman, Ltd.
5.79% due 04/15/2014 (h)		246,000		246,490
Morgan Stanley
4.75% due 04/01/2014		401,000		352,088
5.55% due 04/27/2017		225,000		197,519
6.25% due 08/28/2017		720,000		655,339
6.75% due 04/15/2011		106,000		107,958
Morgan Stanley Dean Witter
6.60% due 04/01/2012		315,000		316,541
Morgan Stanley, MTN
6.625% due 04/01/2018		675,000		627,158
NiSource Finance Corp.
6.40% due 03/15/2018		200,000		191,009
Sun Canada Financial Company
7.25% due 12/15/2015 (h)		229,000		259,909
Sunamerica, Inc.
8.125% due 04/28/2023		135,000		139,972

 

The accompanying notes are an integral part of the financial statements.

215

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
United States Bancorp Oregon
7.50% due 06/01/2026	$	750,000	$	806,097
				20,470,654
Food & Beverages - 1.04%
Cia Brasileira de Bebidas
8.75% due 09/15/2013		285,000		322,050
ConAgra Foods, Inc.
5.819% due 06/15/2017		74,000		72,792
6.75% due 09/15/2011		46,000		47,686
Dr Pepper Snapple Group, Inc.
6.82% due 05/01/2018		100,000		101,827
General Mills, Inc.
5.20% due 03/17/2015		190,000		186,631
Kellogg Company
4.25% due 03/06/2013		140,000		137,357
Kraft Foods, Inc.
5.625% due 11/01/2011		160,000		162,488
6.125% due 02/01/2018		150,000		147,314
6.50% due 11/01/2031		266,000		249,674
6.875% due 02/01/2038		250,000		244,581
SABMiller PLC
6.20% due 07/01/2011 (h)		300,000		310,274
Smithfield Foods, Inc., Series B
7.75% due 05/15/2013		10,000		9,300
Tyson Foods, Inc.
6.85% due 04/01/2016		125,000		117,857
				2,109,831
Forest Products - 0.18%
Weyerhaeuser Company
6.75% due 03/15/2012		308,000		316,537
7.95% due 03/15/2025		40,000		41,275
				357,812
Funeral Services - 0.00%
Service Corp. International
7.625% due 10/01/2018		10,000		9,600
Gas & Pipeline Utilities - 0.55%
CenterPoint Energy Resources Corp.
6.125% due 11/01/2017		125,000		120,423
El Paso Corp.
7.00% due 06/15/2017		10,000		9,798
El Paso Natural Gas Company
5.95% due 04/15/2017		25,000		23,764
Kinder Morgan Energy Partners LP
7.125% due 03/15/2012		208,000		217,905
Kinder Morgan Finance Company
5.70% due 01/05/2016		20,000		18,525
NGPL PipeCo LLC
6.514% due 12/15/2012 (h)		675,000		684,751
Williams Companies, Inc.
7.125% due 09/01/2011		13,000		13,455
8.125% due 03/15/2012		26,000		27,625
				1,116,246
Healthcare Products - 0.01%
Universal Hospital Services, Inc.
8.50% due 06/01/2015		10,000		9,950

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Healthcare Services - 0.27%
DaVita, Inc.
6.625% due 03/15/2013	$	2,000	$	1,950
7.25% due 03/15/2015		2,000		1,967
UnitedHealth Group, Inc.
6.00% due 02/15/2018		575,000		550,617
				554,534
Homebuilders - 0.31%
Centex Corp.
7.875% due 02/01/2011		59,000		55,755
D.R. Horton, Inc.
7.875% due 08/15/2011		370,000		351,500
Pulte Homes, Inc.
7.875% due 08/01/2011		100,000		97,500
8.125% due 03/01/2011		125,000		123,125
				627,880
Hotels & Restaurants - 0.03%
Buffalo Thunder Development Authority
9.375% due 12/15/2014 (h)		20,000		11,200
Wyndham Worldwide Corp.
6.00% due 12/01/2016		60,000		51,677
				62,877
Household Products - 0.17%
Procter & Gamble, Series A
9.36% due 01/01/2021		274,572		340,530
Industrials - 0.01%
Airgas, Inc.
7.125% due 10/01/2018 (h)		10,000		10,100
Insurance - 2.94%
ACE Capital Trust II
9.70% due 04/01/2030		248,000		261,483
ACE INA Holdings, Inc.
5.70% due 02/15/2017		100,000		95,935
5.875% due 06/15/2014		125,000		125,925
AIG SunAmerica Global Financing X
6.90% due 03/15/2032 (h)		100,000		92,789
Allied World Assurance Holdings, Ltd.
7.50% due 08/01/2016		145,000		137,477
AXA SA
8.60% due 12/15/2030		250,000		237,686
Equitable Life Assurance Society
7.70% due 12/01/2015 (h)		250,000		270,307
Everest Reinsurance Holdings, Inc.
6.60% due 05/15/2037 (b)		495,000		341,561
8.75% due 03/15/2010		294,000		306,555
Fidelity National Title Group, Inc.
7.30% due 08/15/2011		26,000		27,027
Jackson National Life Insurance Company
8.15% due 03/15/2027 (h)		377,000		416,689
Liberty Mutual Insurance Company
7.697% due 10/15/2097 (h)		925,000		798,092
Metlife, Inc.
5.375% due 12/15/2012		150,000		148,689
Metropolitan Life Global Funding I
5.125% due 04/10/2013 (h)		335,000		331,957
Nationwide Mutual Insurance Company
8.25% due 12/01/2031 (h)		260,000		263,455

 

The accompanying notes are an integral part of the financial statements.

216

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Insurance (continued)
Navigators Group, Inc.
7.00% due 05/01/2016	$	59,000	$	56,781
Ohio National Life Insurance Company
8.50% due 05/15/2026 (h)		155,000		183,679
Premium Asset Trust
4.125% due 03/12/2009 (h)		87,000		22,342
Principal Life Global Funding I
5.125% due 10/15/2013 (h)		225,000		223,065
6.125% due 10/15/2033 (h)		108,000		100,001
Prudential Financial, Inc., MTN
5.15% due 01/15/2013		355,000		348,056
Reinsurance Group of America, Inc.
6.75% due 12/15/2011		135,000		136,348
Unitrin, Inc.
6.00% due 05/15/2017		350,000		293,823
UnumProvident Finance Company, PLC
6.85% due 11/15/2015 (h)		125,000		123,839
W.R. Berkley Corp.
5.125% due 09/30/2010		54,000		53,989
5.60% due 05/15/2015		263,000		242,549
Willis North America, Inc.
6.20% due 03/28/2017		340,000		316,261
				5,956,360
International Oil - 0.12%
Canadian Oil Sands, Ltd.
7.90% due 09/01/2021 (h)		135,000		143,263
Newfield Exploration Company
6.625% due 04/15/2016		10,000		9,312
Pioneer Natural Resources Company
6.65% due 03/15/2017		85,000		77,442
6.875% due 05/01/2018		15,000		13,630
				243,647
Leisure Time - 0.07%
AMC Entertainment, Inc.
11.00% due 02/01/2016		15,000		15,225
MGM Mirage, Inc.
6.00% due 10/01/2009		100,000		98,000
OED Corp./ Diamond Jo
8.75% due 04/15/2012		5,000		4,288
Seneca Gaming Corp.
7.25% due 05/01/2012		10,000		8,925
Station Casinos, Inc.
6.00% due 04/01/2012		5,000		3,487
Wynn Las Vegas Capital Corp.
6.625% due 12/01/2014		5,000		4,556
Wynn Las Vegas LLC
6.625% due 12/01/2014		9,000		8,201
				142,682
Liquor - 0.31%
Cia Brasileira de Bebidas
10.50% due 12/15/2011		80,000		92,100
Constellation Brands, Inc.
7.25% due 09/01/2016		15,000		14,700
7.25% due 05/15/2017		5,000		4,900
Miller Brewing Company
5.50% due 08/15/2013 (h)		390,000		394,018

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Liquor (continued)
Molson Coors Capital Financial
4.85% due 09/22/2010	$	117,000	$	118,288
				624,006
Manufacturing - 0.40%
General Electric Company
5.25% due 12/06/2017		735,000		710,330
SPX Corp.
7.625% due 12/15/2014 (h)		10,000		10,275
Tyco International Group SA
6.75% due 02/15/2011		85,000		86,675
				807,280
Medical-Hospitals - 0.42%
Community Health Systems, Inc.
8.875% due 07/15/2015		10,000		10,100
HCA, Inc.
6.375% due 01/15/2015		20,000		16,500
7.875% due 02/01/2011		20,000		19,750
9.625% due 11/15/2016		20,000		20,175
Quest Diagnostics, Inc.
5.45% due 11/01/2015		275,000		264,865
6.95% due 07/01/2037		390,000		390,431
7.50% due 07/12/2011		100,000		106,014
Tenet Healthcare Corp.
9.875% due 07/01/2014		20,000		20,150
				847,985
Metal & Metal Products - 0.11%
Inco, Ltd.
5.70% due 10/15/2015		233,000		225,200
Mining - 0.17%
Corporacion Nacional Del Cobre de Chile - CODELCO
6.375% due 11/30/2012 (h)		300,000		317,878
Freeport-McMoRan Copper & Gold, Inc.
8.25% due 04/01/2015		5,000		5,250
8.375% due 04/01/2017		25,000		26,500
				349,628
Newspapers - 0.06%
News America Holdings, Inc.
9.25% due 02/01/2013		109,000		125,257
Paper - 0.32%
Georgia-Pacific Corp.
7.00% due 01/15/2015 (h)		30,000		27,975
International Paper Company
7.40% due 06/15/2014		505,000		512,143
Temple-Inland, Inc.
6.625% due 01/15/2018		125,000		109,457
				649,575
Petroleum Services - 0.14%
Halliburton Company
5.50% due 10/15/2010		192,000		199,104
Petroleum Export, Ltd.
5.265% due 06/15/2011 (h)		81,764		80,355
Pride International, Inc.
7.375% due 07/15/2014		5,000		5,075
				284,534

 

The accompanying notes are an integral part of the financial statements.

217

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Pharmaceuticals - 0.42%
AmerisourceBergen Corp. 5.875% due 09/15/2015	$	670,000	$	655,829
Elan Finance PLC/Elan Finance Corp. 7.75% due 11/15/2011		40,000		37,000
Medco Health Solutions, Inc. 7.125% due 03/15/2018		135,000		139,181
Omnicare, Inc.
6.75% due 12/15/2013		5,000		4,687
6.875% due 12/15/2015		5,000		4,700
				841,397
Publishing - 0.02%
Dex Media, Inc.
zero coupon, Step up to 9.00% on 11/15/2008 due 11/15/2013		7,000		4,060
8.00% due 11/15/2013		25,000		14,750
Scholastic Corp. 5.00% due 04/15/2013		35,000		29,225
				48,035
Railroads & Equipment - 0.00%
American Railcar Industries, Inc. 7.50% due 03/01/2014		5,000		4,625
Real Estate - 2.42%
AMB Property LP
5.45% due 12/01/2010		80,000		81,315
7.50% due 06/30/2018		106,000		110,955
AvalonBay Communities, Inc. 5.50% due 01/15/2012		150,000		146,954
Brandywine Operating Partnership 5.70% due 05/01/2017		335,000		283,938
Developers Diversified Realty Corp.
4.625% due 08/01/2010		55,000		53,382
5.00% due 05/03/2010		25,000		24,418
Duke Realty Corp. LP 5.25% due 01/15/2010		275,000		272,171
Equity One, Inc. 6.00% due 09/15/2017		235,000		196,460
Federal Realty Investment Trust, REIT 5.65% due 06/01/2016		55,000		51,699
Health Care Property Investors, Inc.
5.65% due 12/15/2013		350,000		317,040
5.95% due 09/15/2011		150,000		143,723
7.072 due 06/08/2015		67,000		64,112
Health Care Property Investors, Inc., REIT 6.00% due 03/01/2015		175,000		156,721
Healthcare Realty Trust, Inc. 8.125% due 05/01/2011		377,000		390,966
Kimco Realty Corp. 5.584% due 11/23/2015		125,000		112,853
Liberty Property LP
6.625% due 10/01/2017		100,000		93,339
7.25% due 03/15/2011		195,000		196,861
Realty Income Corp. 6.75% due 08/15/2019		550,000		507,587
Regency Centers LP 7.95% due 01/15/2011		319,000		324,968
Rouse Company LP 6.75% due 05/01/2013 (h)		15,000		12,466

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Real Estate (continued)
Simon Property Group LP
5.30% due 05/30/2013	$	450,000	$	432,285
6.10% due 05/01/2016		150,000		146,448
United Dominion Realty Trust, Inc. 6.05% due 06/01/2013		200,000		197,116
Ventas Realty LP/Ventas Capital Corp.
6.625% due 10/15/2014		95,000		92,031
6.75% due 06/01/2010		2,000		2,010
7.125% due 06/01/2015		3,000		2,978
WEA Finance LLC 7.125% due 04/15/2018 (h)		250,000		239,287
Westfield Group 5.40% due 10/01/2012 (h)		250,000		237,522
				4,891,605
Retail Grocery - 0.09%
Kroger Company 6.75% due 04/15/2012		179,000		188,116
Retail Trade - 0.54%
CVS Caremark Corp. 6.943% due 01/10/2030 (h)		49,445		46,989
CVS Lease Pass Through Certificate 5.88% due 01/10/2028 (h)		342,710		327,262
Federated Department Stores, Inc. 6.90% due 04/01/2029		156,000		131,389
Lazy Days RV Center, Inc. 11.75% due 05/15/2012		9,000		4,500
Macys Retail Holdings, Inc. 5.875% due 01/15/2013		625,000		585,079
				1,095,219
Sanitary Services - 0.01%
Allied Waste North America, Inc. 6.50% due 11/15/2010		5,000		5,025
Allied Waste North America, Inc., Series B 5.75% due 02/15/2011		10,000		9,925
				14,950
Software - 0.14%
Fiserv, Inc. 6.125% due 11/20/2012		200,000		202,973
Intuit, Inc. 5.40% due 03/15/2012		75,000		74,717
				277,690
Steel - 0.32%
ArcelorMittal
5.375% due 06/01/2013 (h)		150,000		147,120
6.125% due 06/01/2018 (h)		500,000		480,851
International Steel Group, Inc. 6.50% due 04/15/2014		15,000		15,208
United States Steel Corp.
6.05% due 06/01/2017		5,000		4,598
7.00% due 02/01/2018		10,000		9,791
				657,568
Telecommunications Equipment & Services - 0.50%
Bellsouth Corp. 4.75% due 11/15/2012		302,000		300,031

 

The accompanying notes are an integral part of the financial statements.

218

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment & Services (continued)
Citizens Communications Company 9.25% due 05/15/2011	$	22,000	$	22,770
GCI, Inc. 7.25% due 02/15/2014		15,000		13,275
SBC Communications, Inc.
5.625% due 06/15/2016		360,000		357,975
5.875% due 08/15/2012		150,000		155,067
Telefonica Europe BV 7.75% due 09/15/2010		150,000		158,128
				1,007,246
Telephone - 2.17%
Ameritech Capital Funding Corp. 6.45% due 01/15/2018		148,000		151,067
AT&T, Inc.
5.50% due 02/01/2018		180,000		175,303
6.30% due 01/15/2038		675,000		636,501
British Telecommunications PLC
5.15% due 01/15/2013		350,000		341,550
8.625% due 12/15/2010		156,000		167,462
Qwest Corp. 7.50% due 10/01/2014		25,000		23,187
Telecom Italia Capital SA
5.25% due 11/15/2013		325,000		303,865
6.00% due 09/30/2034		146,000		118,975
6.20% due 07/18/2011		675,000		689,822
Telefonica Emisones SAU 7.045% due 06/20/2036		275,000		279,246
Verizon Communications, Inc.
5.55% due 02/15/2016		570,000		559,303
6.40% due 02/15/2038		365,000		339,616
6.90% due 04/15/2038		275,000		272,300
8.75% due 11/01/2021		285,000		321,648
Windstream Corp. 8.625% due 08/01/2016		10,000		9,900
				4,389,745
Tobacco - 0.45%
Alliance One International, Inc. 11.00% due 05/15/2012		12,000		12,210
Philip Morris International, Inc. 5.65% due 05/16/2018		800,000		787,045
Reynolds American, Inc.
7.25% due 06/01/2013		95,000		98,755
7.30% due 07/15/2015		6,000		6,171
				904,181
Transportation - 0.13%
DP World, Ltd. 6.85% due 07/02/2037 (h)		310,000		255,574
Utility Service - 0.05%
PacifiCorp
6.35% due 07/15/2038		110,000		108,282
TOTAL CORPORATE BONDS (Cost $84,119,725)			$	79,163,458

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
MUNICIPAL BONDS - 0.24%
California - 0.10%
Southern California Public Power Authority Project, Series B 6.93% due 05/15/2017	$	175,000	$	199,595
Florida - 0.07%
Miami Beach Florida Redevelopment Agency Tax Increment Revenue 8.95% due 12/01/2022		135,000		154,910
Indiana - 0.01%
Indiana Bond Bank Revenue 5.02% due 01/15/2016		15,000		14,535
Maryland - 0.02%
Maryland State Transportation Authority, Ltd. 5.84% due 07/01/2011		40,000		41,149
New Jersey - 0.01%
Jersey City, NJ, Municipal Utilities Authority 4.55% due 05/15/2012		20,000		18,925
New York - 0.03%
Sales Tax Asset Receivable Corp., Series B
4.25% due 10/15/2011		65,000		63,981
TOTAL MUNICIPAL BONDS (Cost $508,197)			$	493,095
COLLATERALIZED MORTGAGE OBLIGATIONS - 8.72%
American Tower Trust, Series 2007-1A, Class AFX 5.4197% due 04/15/2037 (h)		300,000		286,035
Asset Securitization Corp., Series 1997-D5, Class A1D 6.85% due 02/14/2043		479,135		489,115
Banc of America Commercial Mortgage, Inc, Series 2006-2, Class A4 5.9293% due 05/10/2045 (b)		1,000,000		933,813
Banc of America Commercial Mortgage, Inc., Series 2002-PB2 Class A4 6.186% due 06/11/2035		405,797		414,111
Bear Stearns Commercial Mortgage Securities, Inc., Series 2003-T12, Class A4 4.68% due 08/13/2039		405,797		384,846
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A 4.871% due 09/11/2042		560,000		517,325
Bear Stearns Commercial Mortgage Securities, Series 2006-PW12, Class AM 5.9411% due 09/11/2038 (b)		500,000		440,667
Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-T20, Class A4A 5.3001% due 10/12/2042 (b)		500,000		471,292
Chase Commercial Mortgage Securities Corp., Series 1998-2, Class A2 6.39% due 11/18/2030		92,428		92,370
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4 5.3994% due 07/15/2044 (b)		500,000		475,829
Commercial Mortgage Asset Trust, Series 1999-C1, Class A3 6.64% due 01/17/2032		282,824		284,892

 

The accompanying notes are an integral part of the financial statements.

219

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Commercial Mortgage Pass Through Certificates, Series 2005-C6, Class A5A 5.116% due 06/10/2044 (b)	$	500,000	$	468,983
Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4 5.9612% due 06/10/2046 (b)		500,000		470,052
Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class A4 5.609% due 02/15/2039 (b)		1,000,000		931,667
Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A3 5.467% due 09/15/2039		1,000,000		916,226
Crown Castle Towers LLC, Series 2005-1A, Class B 4.878% due 06/15/2035 (h)		375,000		367,463
CS First Boston Mortgage Securities Corp, Series 2003-C3, Class A5 3.936% due 05/15/2038		500,000		460,955
First Union - Chase Commercial Mortgage, Series 1999-C2, Class A2 6.645% due 06/15/2031		233,373		234,426
General Electric Capital Assurance Company, Series 2003-1, Class A5 5.7426% due 05/12/2035 (b)(h)		89,275		84,868
Government National Mortgage Association, Series 2006-38, Class XS 4.7844% IO due 09/16/2035 (b)		73,664		8,353
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A5 5.224% due 04/10/2037 (b)		500,000		471,323
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4 5.553% due 04/10/2038 (b)		1,000,000		929,583
GS Mortgage Securities Corp. II, Series 2006-GG8, Class A4 5.56% due 11/10/2039 (b)		1,200,000		1,107,128
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2004-CBX, Class A6 4.899% due 01/12/2037		315,000		295,589
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2007-CB18, Class A4 5.44% due 06/12/2047		45,000		40,167
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4 6.0654% due 04/15/2045 (b)		1,645,000		1,551,779
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A4 4.918% due 10/15/2042 (b)		940,000		871,041
LB-UBS Commercial Mortgage Trust, Series 2001-C7, Class A3 5.642% due 12/15/2025		157,019		157,968
LB-UBS Commercial Mortgage Trust, Series 2002-C1,Class A4 6.462% due 03/15/2031		202,898		208,450
LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4 6.0803% due 06/15/2038 (b)		500,000		474,631
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class A4 5.047% due 07/12/2038 (b)		500,000		466,905

 

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4 5.8412% due 05/12/2039 (b)	$	500,000	$	469,051
Morgan Stanley Capital I, Series 2007-HQ11, Class A4 5.447% due 02/12/2044 (b)		1,000,000		891,351
Morgan Stanley Dean Witter Capital I, Series 2001, Class A4 6.39% due 07/15/2033		108,854		110,797
Morgan Stanley Dean Witter Capital I, Series 2001-TOP5, Class A4 6.39% due 10/15/2035		270,531		275,406
Morgan Stanley Dean Witter Capital I, Series 2002-TOP7, Class A2 5.98% due 01/15/2039		40,579		40,800
Nomura Asset Securities Corp., Series 1998-D6, Class A1B 6.59% due 03/15/2030		21,771		21,836
Prudential Commercial Mortgage Trust, Series 2003-PWR1, Class A1 3.669% due 02/11/2036		158,466		154,757
Prudential Commercial Mortgage Trust, Series 2003-PWR1, Class A2 4.493% due 02/11/2036		405,797		383,789
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $18,685,405)			$	17,655,639
ASSET BACKED SECURITIES - 2.96%
AmeriCredit Automobile Receivables Trust, Series 2005-AX, Class A4 3.93% due 10/06/2011		472,908		460,885
Capital One Multi-Asset Execution Trust, Series 2003-A4, Class A4 3.65% due 07/15/2011		415,000		415,151
Chase Issuance Trust, Series 2008-A4, Class A4 4.65% due 03/15/2015		345,000		335,663
Chase Manhattan Auto Owner Trust, Series 2005-B, Class A4 4.88% due 06/15/2012		617,169		620,723
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2 5.261% due 04/25/2037 (h)		300,000		251,471
Ford Credit Auto Owner Trust, Series 2005-C, Class A4 4.36% due 06/15/2010		246,188		247,229
Harley-Davidson Motorcycle Trust, Series 2005-1, Class A2 3.76% due 12/17/2012		234,041		221,634
Honda Auto Receivables Owner Trust, Series 2005-1, Class A4 3.82% due 05/21/2010		248,579		248,742
M&I Auto Loan Trust, Series 2005-1, Class A4 4.86% due 03/21/2011		622,328		626,273
Massachusetts RRB Special Purpose Trust, Series 1999-1, Class A5 7.03% due 03/15/2012		478,953		492,383
Massachusetts RRB Special Purpose Trust, Series 2001-1, Class A 6.53% due 06/01/2015		69,706		73,168

 

The accompanying notes are an integral part of the financial statements.

220

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Investment Quality Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Peco Energy Transition Trust, Series 2001-A, Class A1 6.52% due 12/31/2010	$	33,000	$	34,255
USAA Auto Owner Trust, Series 2005-4, Class A4 4.89% due 08/15/2012		700,000		705,410
Wachovia Auto Owner Trust, Series 2005-B, Class A5 4.93% due 11/20/2012		700,000		703,930
WFS Financial Owner Trust, Series 2005-2, Class A4 4.39% due 11/19/2012		116,972		117,338
World Omni Auto Receivables Trust, Series 2005-A, Class A4 3.82% due 11/14/2011		447,557		448,579
TOTAL ASSET BACKED SECURITIES (Cost $6,059,458)			$	6,002,834
REPURCHASE AGREEMENTS - 8.89%
Merrill Lynch Tri-Party Repurchase Agreement dated 08/29/2008 at 2.12% to be repurchased at $18,004,240 on 09/02/2008, collateralized by $19,380,000 Federal National Mortgage Association, 5.50% due 02/01/2038 (valued at $18,364,704, including interest)	$	18,000,000	$	18,000,000
TOTAL REPURCHASE AGREEMENTS (Cost $18,000,000)			$	18,000,000
Total Investments (Investment Quality Bond Fund) (Cost $203,945,618) - 99.00%			$	200,460,216
Other Assets in Excess of Liabilities - 1.00%				2,017,967
TOTAL NET ASSETS - 100.00%			$	202,478,183

 

Large Cap Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.63%
Advertising - 2.27%
Interpublic Group of Companies, Inc. *		464,800	$	4,369,120
Omnicom Group, Inc.		105,350		4,465,786
				8,834,906
Air Travel - 0.47%
Southwest Airlines Company		119,900		1,826,077
Apparel & Textiles - 0.54%
Coach, Inc. *		72,600		2,104,674
Auto Parts - 2.98%
BorgWarner, Inc.		132,338		5,472,176
Johnson Controls, Inc.		198,381		6,133,941
				11,606,117
Automobiles - 1.42%
PACCAR, Inc.		128,300		5,524,598

 

Large Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking - 3.16%
City National Corp.		37,300	$	1,845,977
Fifth Third Bancorp		386,295		6,095,735
SunTrust Banks, Inc.		104,700		4,385,883
				12,327,595
Biotechnology - 3.42%
Cephalon, Inc. *		16,203		1,241,474
Genzyme Corp. *		115,202		9,020,316
Millipore Corp. *		40,800		3,060,408
				13,322,198
Broadcasting - 1.24%
News Corp., Class A		342,400		4,848,384
Building Materials & Construction - 1.55%
Masco Corp.		317,978		6,060,661
Cable & Television - 2.54%
Comcast Corp., Class A		466,900		9,888,942
Coal - 0.98%
Peabody Energy Corp.		60,400		3,802,180
Computer Services - 1.25%
NetApp, Inc. *		191,200		4,871,776
Computers & Business Equipment - 1.69%
Dell, Inc. *		165,200		3,589,796
Hewlett-Packard Company		63,800		2,993,496
				6,583,292
Crude Petroleum & Natural Gas - 2.48%
EOG Resources, Inc.		29,300		3,059,506
Marathon Oil Corp.		101,000		4,552,070
Sunoco, Inc.		45,900		2,037,042
				9,648,618
Drugs & Health Care - 3.09%
Wyeth		278,218		12,041,275
Electrical Utilities - 2.69%
American Electric Power Company, Inc.		89,443		3,491,855
Exelon Corp.		68,913		5,234,632
Pepco Holdings, Inc.		69,981		1,774,018
				10,500,505
Energy - 1.26%
Sempra Energy		84,814		4,912,427
Financial Services - 9.04%
Bank of New York Mellon Corp.		88,968		3,079,182
Citigroup, Inc.		505,134		9,592,495
Discover Financial Services		249,756		4,108,486
Morgan Stanley		160,713		6,561,912
Wells Fargo & Company		393,078		11,898,471
				35,240,546
Food & Beverages - 1.36%
Sysco Corp.		166,300		5,293,329
Gas & Pipeline Utilities - 0.45%
NiSource, Inc.		106,798		1,760,031
Healthcare Products - 4.58%
Covidien, Ltd.		68,500		3,703,795

 

The accompanying notes are an integral part of the financial statements.

221

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Large Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products (continued)
Johnson & Johnson		120,408	$	8,480,336
Medtronic, Inc.		67,434		3,681,896
Zimmer Holdings, Inc. *		27,300		1,976,247
				17,842,274
Healthcare Services - 2.25%
DaVita, Inc. *		35,300		2,025,867
Medco Health Solutions, Inc. *		103,400		4,844,290
UnitedHealth Group, Inc.		62,343		1,898,344
				8,768,501
Holdings Companies/Conglomerates - 2.96%
General Electric Company		409,900		11,518,190
Hotels & Restaurants - 1.78%
Starbucks Corp. *		224,500		3,493,220
Starwood Hotels & Resorts Worldwide, Inc.		95,300		3,454,625
				6,947,845
Household Products - 0.99%
Fortune Brands, Inc.		65,800		3,870,356
Industrial Machinery - 0.80%
Pall Corp.		76,600		3,110,726
Insurance - 4.84%
ACE, Ltd. *		52,300		2,751,503
AFLAC, Inc.		119,800		6,792,660
Hartford Financial Services Group, Inc.		65,038		4,102,597
Principal Financial Group, Inc.		113,800		5,210,902
				18,857,662
International Oil - 1.51%
Chevron Corp.		68,000		5,869,760
Internet Software - 0.86%
Symantec Corp. *		150,088		3,348,463
Leisure Time - 1.88%
Carnival Corp.		146,299		5,421,841
Royal Caribbean Cruises, Ltd.		70,700		1,921,626
				7,343,467
Life Sciences - 0.37%
Pharmaceutical Product Development, Inc.		35,300		1,440,240
Liquor - 0.82%
Constellation Brands, Inc., Class A *		151,900		3,206,609
Manufacturing - 2.13%
Illinois Tool Works, Inc.		167,448		8,307,095
Petroleum Services - 5.50%
Baker Hughes, Inc.		116,400		9,313,164
Halliburton Company		235,400		10,343,476
Tesoro Corp.		96,500		1,790,075
				21,446,715
Pharmaceuticals - 2.59%
Allergan, Inc.		82,426		4,605,141
Schering-Plough Corp.		282,300		5,476,620
				10,081,761
Railroads & Equipment - 1.54%
Burlington Northern Santa Fe Corp.		55,750		5,987,550

 

Large Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Semiconductors - 6.88%
Analog Devices, Inc.		216,200	$	6,044,952
Broadcom Corp., Class A *		107,900		2,596,074
Intel Corp.		599,400		13,708,278
Xilinx, Inc.		171,891		4,465,728
				26,815,032
Software - 4.14%
Intuit, Inc. *		146,400		4,402,248
Microsoft Corp.		336,800		9,191,272
VMware, Inc. Class A *		64,155		2,546,954
				16,140,474
Telephone - 3.54%
AT&T, Inc.		188,000		6,014,120
Sprint Nextel Corp.		894,727		7,802,019
				13,816,139
Trucking & Freight - 2.79%
FedEx Corp.		97,583		8,081,824
Ryder Systems, Inc.		43,500		2,806,620
				10,888,444
TOTAL COMMON STOCKS (Cost $403,433,771)			$	376,605,434
INVESTMENT COMPANIES - 2.31%
Investment Companies - 2.31% SPDR Trust Series 1		70,000		9,015,300
TOTAL INVESTMENT COMPANIES (Cost $9,365,162)			$	9,015,300
REPURCHASE AGREEMENTS - 0.87%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $3,372,637 on 09/02/2008, collateralized by $3,280,000 Federal Home Loan Mortgage Corp., 5.75% due 06/27/2016 (valued at $3,444,000, including interest)	$	3,372,000	$	3,372,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,372,000)			$	3,372,000
Total Investments (Large Cap Fund) (Cost $416,170,933) - 99.81%			$	388,992,734
Other Assets in Excess of Liabilities - 0.19%				742,857
TOTAL NET ASSETS - 100.00%			$	389,735,591

 

Large Cap Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.60%
Aerospace - 4.43%
Alliant Techsystems, Inc. *		11,000	$	1,157,530
General Dynamics Corp.		124,000		11,445,200
Lockheed Martin Corp.		6,520		759,188
Northrop Grumman Corp.		132,000		9,088,200

 

The accompanying notes are an integral part of the financial statements.

222

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Large Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Aerospace (continued)
Raytheon Company		46,000	$	2,759,540
United Technologies Corp.		109,000		7,149,310
				32,358,968
Agriculture - 0.72%
The Mosaic Company		49,000		5,230,260
Air Travel - 0.80%
Southwest Airlines Company		385,000		5,863,550
Banking - 1.22%
Bank of America Corp.		54,000		1,681,560
Hudson City Bancorp, Inc.		271,000		4,997,240
Webster Financial Corp.		103,000		2,195,960
				8,874,760
Biotechnology - 2.51%
Amgen, Inc. *		209,000		13,135,650
Biogen Idec, Inc. *		102,000		5,194,860
				18,330,510
Business Services - 0.63%
Computer Sciences Corp. *		52,000		2,445,560
R.R. Donnelley & Sons Company		77,000		2,146,760
				4,592,320
Chemicals - 1.35%
Eastman Chemical Company		44,000		2,654,080
FMC Corp.		98,000		7,206,920
				9,861,000
Computers & Business Equipment - 2.30%
Hewlett-Packard Company		110,000		5,161,200
Ingram Micro, Inc., Class A *		59,000		1,115,690
International Business Machines Corp.		54,000		6,573,420
Western Digital Corp. *		9,000		245,340
Xerox Corp.		267,000		3,719,310
				16,814,960
Containers & Glass - 0.37%
Owens-Illinois, Inc. *		61,000		2,720,600
Cosmetics & Toiletries - 0.20%
Procter & Gamble Company		21,000		1,465,170
Crude Petroleum & Natural Gas - 7.75%
Apache Corp.		108,000		12,353,040
Devon Energy Corp.		124,000		12,654,200
Hess Corp.		60,000		6,282,600
Marathon Oil Corp.		222,000		10,005,540
Noble Energy, Inc.		81,000		5,810,130
Occidental Petroleum Corp.		82,000		6,507,520
Sunoco, Inc.		66,000		2,929,080
				56,542,110
Electronics - 2.34%
Agilent Technologies, Inc. *		46,000		1,598,960
Jabil Circuit, Inc.		375,000		6,322,500
L-3 Communications Holdings, Inc.		73,000		7,587,620
Synopsys, Inc. *		72,000		1,550,160
				17,059,240

 

Large Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Energy - 1.10%
NRG Energy, Inc. *		213,000	$	8,017,320
Financial Services - 4.00%
Capital One Financial Corp.		224,000		9,887,360
JP Morgan Chase & Company		501,000		19,283,490
				29,170,850
Gas & Pipeline Utilities - 0.21%
National Fuel Gas Company		33,000		1,561,230
Healthcare Products - 3.34%
Johnson & Johnson		346,000		24,368,780
Healthcare Services - 2.59%
McKesson Corp.		137,000		7,915,860
Medco Health Solutions, Inc. *		30,000		1,405,500
WellPoint, Inc. *		182,000		9,607,780
				18,929,140
Holdings Companies/Conglomerates - 2.58%
General Electric Company		669,000		18,798,900
Homebuilders - 0.26%
D.R. Horton, Inc.		150,000		1,869,000
Hotels & Restaurants - 1.09%
McDonald’s Corp.		128,000		7,942,400
Industrial Machinery - 1.36%
AGCO Corp. *		87,000		5,361,810
Parker-Hannifin Corp.		71,000		4,548,970
				9,910,780
Insurance - 11.32%
ACE, Ltd. *		143,000		7,523,230
Aetna, Inc.		110,000		4,745,400
Allstate Corp.		223,000		10,063,990
Arch Capital Group, Ltd. *		59,000		4,115,840
Chubb Corp.		196,000		9,409,960
HCC Insurance Holdings, Inc.		33,000		830,940
Marsh & McLennan Companies, Inc.		286,000		9,131,980
MetLife, Inc.		187,000		10,135,400
Progressive Corp.		319,000		5,891,930
The Travelers Companies, Inc.		231,000		10,200,960
Torchmark Corp.		132,000		7,885,680
Unum Group		105,000		2,668,050
				82,603,360
International Oil - 14.98%
Anadarko Petroleum Corp.		176,000		10,864,480
Chevron Corp.		327,000		28,226,640
ConocoPhillips		273,000		22,525,230
Exxon Mobil Corp.		597,000		47,765,970
				109,382,320
Internet Software - 1.31%
Symantec Corp. *		430,000		9,593,300
Leisure Time - 1.55%
Walt Disney Company		349,000		11,290,150
Manufacturing - 1.41%
Honeywell International, Inc.		100,000		5,017,000

 

The accompanying notes are an integral part of the financial statements.

223

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Large Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Manufacturing (continued)
SPX Corp.		44,000	$	5,247,000
				10,264,000
Medical-Hospitals - 0.03%
LifePoint Hospitals, Inc. *		7,000		236,180
Metal & Metal Products - 0.10%
Reliance Steel & Aluminum Company		13,000		741,130
Mining - 1.44%
Freeport-McMoRan Copper & Gold, Inc.,
Class B		118,000		10,539,760
Petroleum Services - 2.29%
ENSCO International, Inc.		103,000		6,981,340
Tidewater, Inc.		110,000		6,673,700
Valero Energy Corp.		89,000		3,093,640
				16,748,680
Pharmaceuticals - 6.65%
AmerisourceBergen Corp.		107,000		4,388,070
Eli Lilly & Company		207,000		9,656,550
King Pharmaceuticals, Inc. *		305,000		3,489,200
Merck & Company, Inc.		241,000		8,596,470
Pfizer, Inc.		1,171,000		22,377,810
				48,508,100
Railroads & Equipment - 0.94%
CSX Corp.		106,000		6,856,080
Retail Grocery - 1.35%
SUPERVALU, Inc.		162,000		3,756,780
The Kroger Company		221,000		6,104,020
				9,860,800
Retail Trade - 4.75%
BJ’s Wholesale Club, Inc. *		24,000		912,720
CVS Caremark Corp.		262,000		9,589,200
RadioShack Corp.		308,000		5,855,080
The Gap, Inc.		397,000		7,721,650
Wal-Mart Stores, Inc.		179,000		10,573,530
				34,652,180
Sanitary Services - 0.51%
Waste Management, Inc.		105,000		3,693,900
Semiconductors - 4.74%
Integrated Device Technology, Inc. *		148,000		1,567,320
Intel Corp.		403,000		9,216,610
Intersil Corp., Class A		289,000		6,771,270
KLA-Tencor Corp.		183,000		6,781,980
Novellus Systems, Inc. *		196,000		4,443,320
QLogic Corp. *		313,000		5,846,840
				34,627,340
Software - 0.69%
BMC Software, Inc. *		12,335		401,628
CA, Inc.		35,000		836,850
Compuware Corp. *		175,000		2,000,250
Oracle Corp. *		83,441		1,829,861
				5,068,589

 

Large Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Steel - 2.14%
Nucor Corp.		155,000	$	8,137,500
United States Steel Corp.		56,000		7,451,920
				15,589,420
Telephone - 1.70%
AT&T, Inc.		240,000		7,677,600
CenturyTel, Inc.		123,000		4,751,490
				12,429,090
Toys, Amusements & Sporting Goods - 0.55%
Hasbro, Inc.	��	108,000		4,039,200
TOTAL COMMON STOCKS (Cost $724,575,200)			$	727,005,427
REPURCHASE AGREEMENTS - 0.13%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $966,182 on 09/02/2008, collateralized by $970,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $986,781, including interest)	$	966,000	$	966,000
TOTAL REPURCHASE AGREEMENTS (Cost $966,000)			$	966,000
Total Investments (Large Cap Value Fund) (Cost $725,541,200) - 99.73%			$	727,971,427
Other Assets in Excess of Liabilities - 0.27%				1,956,700
TOTAL NET ASSETS - 100.00%			$	729,928,127

 

Mid Cap Index Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.97%
Advertising - 0.38%
Lamar Advertising Company, Class A * (a)		23,569	$	875,588
ValueClick, Inc. *		28,910		372,650
				1,248,238
Aerospace - 0.54%
Alliant Techsystems, Inc. *		10,000		1,052,300
BE Aerospace, Inc. *		30,098		720,847
				1,773,147
Air Travel - 0.20%
Airtran Holdings, Inc. *		34,818		83,563
Alaska Air Group, Inc. *		11,058		232,329
JetBlue Airways Corp. *		55,528		337,055
				652,947
Apparel & Textiles - 1.32%
Guess?, Inc.		16,736		623,751
Hanesbrands, Inc. *		28,576		681,252
Mohawk Industries, Inc. *		16,831		1,162,181
Phillips-Van Heusen Corp.		15,595		593,546
Timberland Company, Class A *		14,647		246,948

 

The accompanying notes are an integral part of the financial statements.

224

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Apparel & Textiles (continued)
Under Armour, Inc., Class A * (a)		11,005	$	370,978
Warnaco Group, Inc. *		13,825		712,955
				4,391,611
Auto Parts - 1.31%
ArvinMeritor, Inc.		22,384		335,984
BorgWarner, Inc.		35,271		1,458,456
Federal Signal Corp.		14,581		233,733
Gentex Corp.		43,382		691,075
Lear Corp. *		23,484		294,959
Modine Manufacturing Company		9,801		155,052
O’Reilly Automotive, Inc. *		40,814		1,188,504
				4,357,763
Auto Services - 0.34%
Avis Budget Group, Inc. *		30,711		234,018
Copart, Inc. *		20,653		908,938
				1,142,956
Banking - 3.26%
Associated Banc Corp.		38,698		677,215
Astoria Financial Corp.		24,808		542,055
Bank of Hawaii Corp.		14,561		769,986
Cathay General Bancorp, Inc.		15,012		290,632
City National Corp.		12,229		605,213
Colonial Bancgroup, Inc. (a)		61,313		387,498
Commerce Bancshares, Inc.		19,024		856,080
Cullen Frost Bankers, Inc.		17,858		994,333
First Niagara Financial Group, Inc.		33,325		498,542
FirstMerit Corp.		24,561		497,115
New York Community Bancorp, Inc.		103,548		1,707,506
PacWest Bancorp		7,428		168,467
SVB Financial Group *		9,724		545,030
TCF Financial Corp.		33,045		520,459
Washington Federal, Inc.		26,669		459,507
Webster Financial Corp.		15,946		339,969
WestAmerica Bancorp		8,815		451,328
Wilmington Trust Corp.		20,442		479,774
				10,790,709
Biotechnology - 1.56%
Affymetrix, Inc. *		21,088		180,935
Cephalon, Inc. *		20,579		1,576,763
Charles River Laboratories International, Inc. *		20,697		1,357,930
Invitrogen Corp. *		27,181		1,154,105
Techne Corp. *		11,739		905,899
				5,175,632
Broadcasting - 0.07%
Belo Corp., Class A		26,702		195,725
Entercom Communications Corp.		8,088		49,418
				245,143
Building Materials & Construction - 0.79%
Dycom Industries, Inc. *		12,183		195,294
Granite Construction, Inc.		9,768		358,290
KBR, Inc.		51,579		1,266,264
RPM International, Inc.		37,040		800,064
				2,619,912

 

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services - 5.12%
Acxiom Corp.		20,697	$	299,072
Alliance Data Systems Corp. *		20,693		1,329,318
Brinks Company		14,399		1,004,762
Cadence Design Systems, Inc. *		78,333		625,881
ChoicePoint, Inc. *		20,808		1,012,517
Corporate Executive Board Company		10,358		377,031
Deluxe Corp.		15,644		258,283
DST Systems, Inc. * (a)		13,912		859,066
Dun & Bradstreet Corp.		16,954		1,559,259
Fair Isaac Corp.		14,771		341,210
Gartner Group, Inc., Class A *		18,960		500,734
Global Payments, Inc.		24,166		1,165,043
Harte-Hanks, Inc.		13,049		161,155
Kelly Services, Inc., Class A		6,739		130,332
Korn/Ferry International *		14,092		250,556
Macrovision Solutions Corp. *		25,266		392,128
Manpower, Inc.		24,111		1,158,775
MPS Group, Inc. *		28,647		330,013
Navigant Consulting Company *		13,853		239,795
NCR Corp. *		50,884		1,346,391
Rollins, Inc.		12,875		228,789
SAIC, Inc. *		53,900		1,080,695
Sotheby’s		20,458		551,139
SRA International, Inc., Class A *		12,917		303,291
URS Corp. *		25,643		1,229,838
Wind River Systems, Inc. *		20,578		227,387
				16,962,460
Cellular Communications - 0.47%
RF Micro Devices, Inc. *		79,913		310,062
Telephone & Data Systems, Inc.		32,330		1,241,472
				1,551,534
Chemicals - 3.33%
Airgas, Inc.		25,153		1,490,064
Albemarle Corp.		23,062		916,484
Cabot Corp.		19,579		541,751
Chemtura Corp.		73,569		484,820
Cytec Industries, Inc.		12,734		646,887
Ferro Corp.		13,278		292,647
FMC Corp.		22,730		1,671,564
Lubrizol Corp.		20,696		1,096,681
Minerals Technologies, Inc.		5,738		376,872
Olin Corp.		22,707		611,045
Sensient Technologies Corp.		14,599		426,437
Terra Industries, Inc.		27,759		1,394,890
The Scotts Company, Class A		13,524		361,632
Valspar Corp.		30,216		714,910
				11,026,684
Coal - 1.06%
Arch Coal, Inc.		43,785		2,374,898
Patriot Coal Corp. *		19,260		1,154,830
				3,529,728
Colleges & Universities - 0.26%
Career Education Corp. *		27,209		510,169

 

The accompanying notes are an integral part of the financial statements.

225

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Colleges & Universities (continued)
Corinthian Colleges, Inc. *		25,866	$	343,242
				853,411
Computers & Business Equipment - 2.42%
3Com Corp. *		122,480		259,658
Avocent Corp. *		13,590		318,957
Diebold, Inc.		19,987		792,484
Foundry Networks, Inc. *		44,312		814,898
Ingram Micro, Inc., Class A *		43,460		821,829
Jack Henry & Associates, Inc.		23,387		468,442
Metavante Technologies, Inc. *		27,241		643,977
National Instruments Corp.		17,138		553,215
Palm, Inc. * (a)		32,567		277,145
Parametric Technology Corp. *		34,980		702,398
Tech Data Corp. *		16,066		548,493
Western Digital Corp. *		67,257		1,833,426
				8,034,922
Construction & Mining Equipment - 0.70%
Joy Global, Inc.		32,886		2,336,221
Construction Materials - 0.52%
Louisiana-Pacific Corp.		31,374		305,583
Martin Marietta Materials, Inc. (a)		12,555		1,417,459
				1,723,042
Containers & Glass - 0.53%
Packaging Corp. of America		27,753		714,640
Sonoco Products Company		30,226		1,044,610
				1,759,250
Correctional Facilities - 0.30%
Corrections Corp. of America *		37,981		1,010,295
Cosmetics & Toiletries - 0.21%
Alberto-Culver Company		26,303		688,087
Crude Petroleum & Natural Gas - 3.42%
Bill Barrett Corp. *		10,251		403,684
Cimarex Energy Company		25,169		1,397,886
Forest Oil Corp. *		26,962		1,534,677
Newfield Exploration Company *		40,023		1,809,840
Patterson-UTI Energy, Inc.		46,914		1,333,296
Pioneer Natural Resources Company		36,315		2,294,019
Plains Exploration & Production Company *		32,657		1,760,212
Quicksilver Resources, Inc. *		33,366		807,124
				11,340,738
Domestic Oil - 1.26%
Denbury Resources, Inc. *		74,729		1,860,005
Encore Aquisition Company *		16,190		834,756
Frontier Oil Corp.		31,578		611,666
Helix Energy Solutions Group, Inc. *		27,847		856,852
				4,163,279
Drugs & Health Care - 0.25%
Perrigo Company		23,587		825,309
Educational Services - 0.79%
DeVry, Inc.		18,201		938,808
ITT Educational Services, Inc. *		8,729		776,095

 

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Educational Services (continued)
Strayer Education, Inc.		4,319	$	906,299
				2,621,202
Electrical Equipment - 1.28%
AMETEK, Inc.		32,411		1,573,230
FLIR Systems, Inc. *		41,695		1,488,512
Hubbell, Inc., Class B		17,016		740,366
Varian, Inc. *		8,971		445,948
				4,248,056
Electrical Utilities - 4.20%
Alliant Energy Corp.		33,549		1,172,537
Black Hills Corp.		11,667		394,461
DPL, Inc.		34,513		856,613
Great Plains Energy, Inc.		36,014		844,528
Hawaiian Electric Industries, Inc.		25,542		675,586
IDACORP, Inc.		13,742		409,512
Northeast Utilities		47,220		1,269,746
NSTAR		32,447		1,098,006
OGE Energy Corp.		27,940		941,578
PNM Resources, Inc.		26,226		309,204
Puget Energy, Inc.		39,394		1,099,093
Quanta Services, Inc. *		52,365		1,672,538
Sierra Pacific Resources		71,069		798,816
Westar Energy, Inc.		31,847		721,335
Wisconsin Energy Corp.		35,521		1,661,317
				13,924,870
Electronics - 3.45%
Amphenol Corp., Class A		53,273		2,531,533
Arrow Electronics, Inc. *		37,278		1,237,257
Avnet, Inc. *		45,688		1,340,943
DRS Technologies, Inc.		12,585		1,002,018
Imation Corp.		9,495		201,674
Mentor Graphics Corp. *		27,604		336,769
Synopsys, Inc. *		43,351		933,347
Teleflex, Inc.		12,031		776,841
Thomas & Betts Corp. *		15,542		716,175
Trimble Navigation, Ltd. *		36,807		1,245,917
Vishay Intertechnology, Inc. *		56,609		503,254
Zebra Technologies Corp., Class A *		19,750		616,595
				11,442,323
Energy - 1.73%
Energen Corp.		21,780		1,216,195
Energy East Corp.		48,089		1,308,021
MDU Resources Group, Inc.		55,553		1,835,471
SCANA Corp.		35,441		1,389,287
				5,748,974
Financial Services - 3.35%
Affiliated Managers Group, Inc. *		12,436		1,184,156
AmeriCredit Corp. * (a)		34,999		370,290
Apollo Investment Corp. (a)		43,205		764,729
Broadridge Financial Solutions, Inc.		42,550		849,724
Eaton Vance Corp.		35,172		1,255,992
Fidelity National Financial, Inc., Class A		64,980		911,669
GATX Corp.		14,794		648,421
Jefferies Group, Inc. (a)		36,110		693,673

 

The accompanying notes are an integral part of the financial statements.

226

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or Principal Amount			Value
COMMON STOCKS (continued)
Financial Services (continued)
Lender Processing Services, Inc. *		26,080		$	868,464
Raymond James Financial, Inc.		28,695			884,667
SEI Investments Company		38,094			899,780
Synovus Financial Corp.		100,276			922,539
Waddell & Reed Financial, Inc., Class A		26,332			847,890
					11,101,994
Food & Beverages - 1.70%
Corn Products International, Inc.		22,517			1,008,536
Hansen Natural Corp. *		18,514			508,765
Hormel Foods Corp.		21,847			779,064
J.M. Smucker Company		16,887			915,782
PepsiAmericas, Inc.		17,834			417,851
Ralcorp Holdings, Inc. *		17,076			1,048,466
Smithfield Foods, Inc. *		35,521			714,327
Tootsie Roll Industries, Inc. (a)		8,197			233,451
					5,626,242
Forest Products - 0.32%
Rayonier, Inc.		23,828			1,072,022
Funeral Services - 0.24%
Service Corp. International		79,331			809,970
Furniture & Fixtures - 0.04%
Furniture Brands International, Inc. (a)		14,832			132,746
Gas & Pipeline Utilities - 1.95%
AGL Resources, Inc.		23,249			768,612
Equitable Resources, Inc.		39,415			1,967,203
National Fuel Gas Company		24,681			1,167,658
ONEOK, Inc.		31,677			1,384,602
Vectren Corp.		24,594			682,237
WGL Holdings, Inc.		15,027			483,869
			��		6,454,181
Healthcare Products - 3.67%
Advanced Medical Optics, Inc. *		18,476			399,636
Beckman Coulter, Inc.		19,100			1,409,962
DENTSPLY International, Inc.		45,215			1,771,976
Edwards Lifesciences Corp. *		16,664			986,675
Gen-Probe, Inc. *		16,405			980,199
Henry Schein, Inc. *		27,421			1,603,580
Hologic, Inc. *		77,724			1,649,303
IDEXX Laboratories, Inc. *		18,319			1,031,360
Kinetic Concepts, Inc. *		16,490			579,788
ResMed, Inc. *		23,472			1,098,490
STERIS Corp.		17,785			653,954
					12,164,923
Healthcare Services - 2.37%
Apria Healthcare Group, Inc. *		13,326			263,588
Cerner Corp. *		20,314			935,460
Covance, Inc. *		19,097			1,801,611
Health Net, Inc. *		32,596			901,279
Hill-Rom Holdings, Inc.		18,942			567,124
Kindred Healthcare, Inc. *		9,117			281,989
Lincare Holdings, Inc. *		22,237			733,821
Omnicare, Inc.		36,952			1,191,702
Psychiatric Solutions, Inc. *		16,836			635,559

 

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Services (continued)
WellCare Health Plans, Inc. *		12,670	$	529,099
				7,841,232
Homebuilders - 0.84%
Hovnanian Enterprises, Inc., Class A * (a)		13,746		98,147
M.D.C. Holdings, Inc.		10,700		443,515
NVR, Inc. *		1,607		960,552
Ryland Group, Inc.		12,872		298,373
Toll Brothers, Inc. *		39,056		971,713
				2,772,300
Hotels & Restaurants - 0.62%
Bob Evans Farms, Inc.		9,416		264,307
Boyd Gaming Corp.		17,067		208,047
Brinker International, Inc.		30,759		581,960
Chipotle Mexican Grill, Inc., Class A * (a)		10,019		694,517
The Cheesecake Factory, Inc. *		20,374		313,149
				2,061,980
Household Products - 1.07%
Blyth, Inc.		7,155		113,121
Church & Dwight, Inc.		20,195		1,262,187
Energizer Holdings, Inc. *		17,465		1,483,477
Tupperware Brands Corp.		18,829		672,572
				3,531,357
Industrial Machinery - 3.35%
AGCO Corp. *		27,866		1,717,382
Crane Company		15,403		565,598
Donaldson Company, Inc.		21,284		934,580
Flowserve Corp.		17,502		2,312,364
FMC Technologies, Inc. *		38,901		2,083,538
Graco, Inc.		18,401		701,998
IDEX Corp.		25,009		927,084
Kennametal, Inc.		23,337		822,162
Lincoln Electric Holdings, Inc.		12,978		1,048,233
				11,112,939
Industrials - 1.38%
Fastenal Company		38,053		1,976,092
Harsco Corp.		25,598		1,347,479
Shaw Group, Inc. *		25,184		1,247,615
				4,571,186
Insurance - 3.47%
American Financial Group, Inc.		21,515		613,823
Arthur J. Gallagher & Company		28,191		746,498
Brown & Brown, Inc.		34,627		703,621
Everest Re Group, Ltd.		18,813		1,545,112
First American Corp.		28,102		710,137
Hanover Insurance Group, Inc.		15,613		737,402
HCC Insurance Holdings, Inc.		33,580		845,544
Horace Mann Educators Corp.		12,341		183,881
Mercury General Corp.		10,807		550,508
Old Republic International Corp.		70,027		765,395
Philadelphia Consolidated Holding Corp. *		17,576		1,049,814
PMI Group, Inc.		24,671		88,569
Protective Life Corp.		21,210		769,711
Stancorp Financial Group, Inc.		14,874		728,975

 

The accompanying notes are an integral part of the financial statements.

227

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Insurance (continued)
Unitrin, Inc.		15,254	$	389,435
W.R. Berkley Corp.		45,039		1,061,119
				11,489,544
Internet Retail - 0.46%
Netflix, Inc. * (a)		13,680		421,891
Priceline.com, Inc. *		11,701		1,087,959
				1,509,850
Internet Software - 0.99%
Digital River, Inc. *		11,277		493,368
F5 Networks, Inc. *		24,881		848,691
McAfee, Inc. *		48,896		1,934,326
				3,276,385
Leisure Time - 0.71%
Callaway Golf Company		20,133		273,406
DreamWorks Animation SKG, Inc., Class A *		24,188		771,114
International Speedway Corp., Class A		9,067		359,688
Life Time Fitness, Inc. * (a)		10,326		365,024
Scientific Games Corp., Class A *		19,694		592,986
				2,362,218
Life Sciences - 0.39%
Pharmaceutical Product Development, Inc.		31,985		1,304,988
Manufacturing - 2.43%
AptarGroup, Inc.		20,661		834,498
Carlisle Companies, Inc.		18,537		600,413
Lancaster Colony Corp.		6,282		218,488
Mine Safety Appliances Company		8,899		323,301
Nordson Corp.		10,234		548,849
Pentair, Inc.		30,102		1,106,249
Roper Industries, Inc.		27,160		1,604,613
SPX Corp.		16,225		1,934,831
Trinity Industries, Inc.		24,590		884,748
				8,055,990
Medical-Hospitals - 1.13%
Community Health Systems, Inc. *		29,234		1,008,865
Health Management Associates, Inc., Class A *		73,901		429,365
LifePoint Hospitals, Inc. *		16,467		555,597
Universal Health Services, Inc., Class B		15,451		954,563
VCA Antech, Inc. *		25,625		787,712
				3,736,102
Metal & Metal Products - 1.03%
Commercial Metals Company		34,666		902,356
Matthews International Corp., Class A		9,474		476,163
Reliance Steel & Aluminum Company		19,270		1,098,583
Timken Company		29,176		942,968
				3,420,070
Mining - 0.98%
Cleveland-Cliffs, Inc.		31,957		3,234,688
Mobile Homes - 0.07%
Thor Industries, Inc. (a)		10,442		239,957
Office Furnishings & Supplies - 0.24%
Herman Miller, Inc.		17,047		479,703

 

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Office Furnishings & Supplies (continued)
HNI Corp. (a)		13,500	$	312,390
				792,093
Paper - 0.33%
Potlatch Corp.		11,966		558,693
Temple-Inland, Inc.		32,269		539,215
				1,097,908
Petroleum Services - 2.05%
Exterran Holdings, Inc. *		19,939		911,412
Helmerich & Payne, Inc.		31,694		1,810,361
Pride International, Inc. *		50,965		1,957,566
Superior Energy Services, Inc. *		24,528		1,153,797
Tidewater, Inc.		15,630		948,272
				6,781,408
Pharmaceuticals - 1.17%
Endo Pharmaceutical Holdings, Inc. *		36,526		829,871
Medicis Pharmaceutical Corp., Class A		17,145		355,073
PDL BioPharma, Inc. *		36,244		437,465
Sepracor, Inc. *		32,742		602,453
Valeant Pharmaceuticals International * (a)		27,126		496,677
Vertex Pharmaceuticals, Inc. *		42,703		1,147,002
				3,868,541
Publishing - 0.41%
American Greetings Corp., Class A		14,817		238,257
John Wiley & Sons, Inc., Class A		13,653		649,610
Lee Enterprises, Inc. (a)		11,730		43,988
Media General, Inc., Class A (a)		6,945		85,424
Scholastic Corp.		7,913		206,529
Valassis Communications, Inc. *		14,596		137,348
				1,361,156
Railroads & Equipment - 0.69%
Kansas City Southern *		27,617		1,420,343
Wabtec Corp.		14,704		868,565
				2,288,908
Real Estate - 5.49%
Alexandria Real Estate Equities, Inc., REIT		9,745		1,049,634
AMB Property Corp., REIT		29,764		1,350,988
BRE Properties, Inc., Class A, REIT		15,495		747,324
Camden Property Trust, REIT		16,146		788,086
Cousins Properties, Inc., REIT (a)		11,222		280,438
Duke Realty Corp., REIT		44,561		1,115,362
Equity One, Inc., REIT		11,242		235,969
Federal Realty Investment Trust, REIT		17,859		1,355,141
Health Care, Inc., REIT		27,280		1,415,013
Highwoods Properties, Inc., REIT		17,410		631,461
Hospitality Properties Trust, REIT		28,539		647,264
Jones Lang LaSalle, Inc.		9,676		481,865
Liberty Property Trust, REIT		28,166		1,063,548
Mack-California Realty Corp., REIT		19,954		806,541
Nationwide Health Properties, Inc., REIT		29,273		1,007,577
Realty Income Corp., REIT (a)		30,773		790,251
Regency Centers Corp., REIT		21,243		1,316,429
The Macerich Company, REIT		22,706		1,406,182
UDR, Inc., REIT		38,955		965,305

 

The accompanying notes are an integral part of the financial statements.

228

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Real Estate (continued)
Weingarten Realty Investors, REIT		22,697	$	750,136
				18,204,514
Retail Grocery - 0.11%
Ruddick Corp.		11,291		359,505
Retail Trade - 4.88%
99 Cents Only Stores *		14,260		122,066
Advance Auto Parts, Inc.		28,946		1,245,836
Aeropostale, Inc. *		20,331		708,739
American Eagle Outfitters, Inc.		62,526		941,016
AnnTaylor Stores Corp. *		17,934		435,438
Barnes & Noble, Inc.		13,009		321,713
BJ’s Wholesale Club, Inc. *		18,244		693,819
Borders Group, Inc.		18,381		128,667
CarMax, Inc. * (a)		66,414		982,927
Charming Shoppes, Inc. *		34,463		186,100
Chico’s FAS, Inc. *		53,601		307,670
Coldwater Creek, Inc. *		18,227		132,693
Collective Brands, Inc. *		19,420		281,978
Dick’s Sporting Goods, Inc. *		25,388		581,131
Dollar Tree, Inc. *		27,282		1,046,537
Foot Locker, Inc.		47,025		766,037
MSC Industrial Direct Company, Inc., Class A		13,830		704,362
NBTY, Inc. *		15,729		522,832
Pacific Sunwear of California, Inc. *		20,944		132,575
PetSmart, Inc.		38,681		1,043,227
Regis Corp.		13,066		358,792
Rent-A-Center, Inc. *		20,268		459,273
Ross Stores, Inc.		40,347		1,622,353
Saks, Inc. * (a)		43,622		497,291
United Rentals, Inc. *		15,838		256,417
Urban Outfitters, Inc. *		34,519		1,229,567
Williams-Sonoma, Inc.		26,617		470,855
				16,179,911
Sanitary Services - 1.16%
Aqua America, Inc. (a)		40,595		742,483
Republic Services, Inc.		47,527		1,562,212
Stericycle, Inc. *		26,191		1,553,126
				3,857,821
Semiconductors - 2.18%
Atmel Corp. *		135,350		567,117
Cree, Inc. * (a)		27,240		634,964
Cypress Semiconductor Corp. *		45,739		1,482,858
Fairchild Semiconductor International, Inc. *		37,844		474,564
Integrated Device Technology, Inc. *		52,035		551,051
International Rectifier Corp. *		22,029		460,406
Intersil Corp., Class A		37,601		880,991
Lam Research Corp. *		37,968		1,395,704
Semtech Corp. *		18,781		277,771
Silicon Laboratories, Inc. *		14,797		498,807
				7,224,233
Software - 0.74%
ACI Worldwide, Inc. *		10,439		189,155
Advent Software, Inc. *		5,512		254,930
ANSYS, Inc. *		26,884		1,192,305

 

Mid Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software (continued)
Sybase, Inc. *		24,083	$	828,696
				2,465,086
Steel - 0.70%
Carpenter Technology Corp.		14,520		563,521
Steel Dynamics, Inc.		57,382		1,424,795
Worthington Industries, Inc.		19,514		343,447
				2,331,763
Telecommunications Equipment & Services - 1.05%
ADC Telecommunications, Inc. *		35,760		366,540
ADTRAN, Inc.		17,162		391,293
CommScope, Inc. *		21,218		1,039,045
NeuStar, Inc., Class A *		23,561		565,700
Plantronics, Inc.		14,867		383,569
Polycom, Inc. *		26,595		745,724
				3,491,871
Telephone - 0.73%
Cincinnati Bell, Inc. *		73,807		287,848
Harris Corp.		40,920		2,142,571
				2,430,419
Tobacco - 0.13%
Universal Corp.		8,197		425,588
Toys, Amusements & Sporting Goods - 0.15%
Marvel Entertainment, Inc. *		14,839		502,597
Transportation - 0.55%
Alexander & Baldwin, Inc.		12,547		561,228
Con-way, Inc.		13,851		680,084
Overseas Shipholding Group, Inc.		8,138		583,820
				1,825,132
Trucking & Freight - 0.58%
J.B. Hunt Transport Services, Inc.		26,144		952,949
Oshkosh Corp.		22,638		349,078
Werner Enterprises, Inc.		13,472		307,296
YRC Worldwide, Inc. * (a)		17,344		313,926
				1,923,249
TOTAL COMMON STOCKS (Cost $334,717,526)			$	321,483,010
SHORT TERM INVESTMENTS - 5.64%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	10,395,398	$	10,395,398
Societe Generale North America, Inc. 2.10% due 09/02/2008		8,282,000		8,281,517
TOTAL SHORT TERM INVESTMENTS (Cost $18,676,915)			$	18,676,915
Total Investments (Mid Cap Index Fund) (Cost $353,394,441) - 102.61%			$	340,159,925
Liabilities in Excess of Other Assets - (2.61)%				(8,640,805	)
TOTAL NET ASSETS - 100.00%			$	331,519,120

 

The accompanying notes are an integral part of the financial statements.

229

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Intersection Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.71%
Aerospace - 1.06%
Alliant Techsystems, Inc. *		9,200	$	968,116
Teledyne Technologies, Inc. *		13,400		835,222
Woodward Governor Company		16,500		764,445
				2,567,783
Apparel & Textiles - 1.11%
Deckers Outdoor Corp. *		5,200		591,188
Hanesbrands, Inc. *		29,800		710,432
Warnaco Group, Inc. *		26,820		1,383,107
				2,684,727
Auto Parts - 1.46%
BorgWarner, Inc.		52,800		2,183,280
TRW Automotive Holdings Corp. *		71,200		1,365,616
				3,548,896
Banking - 1.37%
Huntington BancShares, Inc.		100,900		738,588
M&T Bank Corp.		13,500		963,090
Sovereign Bancorp, Inc.		72,520		700,543
Webster Financial Corp.		42,900		914,628
				3,316,849
Biotechnology - 2.29%
Bio-Rad Laboratories, Inc., Class A *		16,900		1,818,440
Cephalon, Inc. *		35,945		2,754,106
Invitrogen Corp. *		22,800		968,088
				5,540,634
Building Materials & Construction - 1.24%
Armstrong World Industries, Inc. *		32,400		1,208,844
EMCOR Group, Inc. *		19,600		667,772
Lennox International, Inc.		30,500		1,128,500
				3,005,116
Business Services - 3.26%
Affiliated Computer Services, Inc., Class A *		39,600		2,108,304
Deluxe Corp.		30,110		497,116
Manpower, Inc.		89,519		4,302,283
R.R. Donnelley & Sons Company		17,700		493,476
Watson Wyatt Worldwide, Inc., Class A		8,500		498,015
				7,899,194
Chemicals - 3.80%
CF Industries Holdings, Inc.		31,300		4,770,120
FMC Corp.		22,118		1,626,558
Minerals Technologies, Inc.		10,900		715,912
Terra Industries, Inc.		34,600		1,738,650
W. R. Grace & Company *		14,000		368,060
				9,219,300
Coal - 0.21%
Massey Energy Company		7,700		507,892
Commercial Services - 0.27%
American Water Works Company, Inc.		28,800		660,960
Computer Services - 0.36%
NetApp, Inc. *		34,100		868,868
Computers & Business Equipment - 3.68%
3Com Corp. *		232,300		492,476

 

Mid Cap Intersection Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Computers & Business Equipment (continued)
Avocent Corp. *		63,400	$	1,487,998
Ingram Micro, Inc., Class A *		153,701		2,906,486
Parametric Technology Corp. *		58,180		1,168,254
Seagate Technology		85,600		1,276,296
Tech Data Corp. *		16,900		576,966
Western Digital Corp. *		37,300		1,016,798
				8,925,274
Construction & Mining Equipment - 0.92%
Joy Global, Inc.		31,320		2,224,973
Containers & Glass - 0.73%
Owens-Illinois, Inc. *		39,600		1,766,160
Crude Petroleum & Natural Gas - 5.29%
Cimarex Energy Company		31,589		1,754,453
Forest Oil Corp. *		10,200		580,584
Newfield Exploration Company *		15,800		714,476
Noble Energy, Inc.		58,392		4,188,458
Unit Corp. *		55,900		3,786,107
W&T Offshore, Inc.		35,400		1,244,664
Whiting Petroleum Corp. *		5,800		558,192
				12,826,934
Domestic Oil - 1.81%
Continental Resources, Inc. *		15,400		772,618
Encore Aquisition Company *		26,045		1,342,880
McMoran Exploration Company *		19,400		530,590
Oil States International, Inc. *		7,400		411,662
St. Mary Land & Exploration Company		31,300		1,321,486
				4,379,236
Drugs & Health Care - 0.73%
Perrigo Company		50,740		1,775,393
Educational Services - 2.08%
DeVry, Inc.		24,900		1,284,342
ITT Educational Services, Inc. *		34,823		3,096,113
Strayer Education, Inc.		3,200		671,488
				5,051,943
Electrical Equipment - 0.42%
GrafTech International, Ltd. *		21,778		442,529
Wesco International, Inc. *		14,700		565,068
				1,007,597
Electrical Utilities - 2.31%
CenterPoint Energy, Inc.		87,100		1,383,148
DPL, Inc.		31,300		776,866
Hawaiian Electric Industries, Inc.		23,900		632,155
Integrys Energy Group, Inc.		11,000		574,970
Pepco Holdings, Inc.		87,685		2,222,815
				5,589,954
Electronics - 2.42%
Amphenol Corp., Class A		41,852		1,988,807
Avnet, Inc. *		54,900		1,611,315
Synopsys, Inc. *		55,900		1,203,527
Vishay Intertechnology, Inc. *		118,600		1,054,354
				5,858,003

 

The accompanying notes are an integral part of the financial statements.

230

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Intersection Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Energy - 2.61%
Energen Corp.		32,700	$	1,825,968
MDU Resources Group, Inc.		92,453		3,054,647
SCANA Corp.		36,700		1,438,640
				6,319,255
Financial Services - 3.86%
CapitalSource, Inc.		137,100		1,724,718
Discover Financial Services		50,000		822,500
IntercontinentalExchange, Inc. *		8,600		757,058
Knight Capital Group, Inc. *		36,800		634,432
UMB Financial Corp.		46,300		2,408,989
Waddell & Reed Financial, Inc., Class A		93,465		3,009,573
				9,357,270
Food & Beverages - 0.79%
Hormel Foods Corp.		37,100		1,322,986
Pepsi Bottling Group, Inc.		19,700		582,726
				1,905,712
Furniture & Fixtures - 0.14%
Furniture Brands International, Inc.		39,300		351,735
Gas & Pipeline Utilities - 2.91%
Atmos Energy Corp.		13,500		371,790
National Fuel Gas Company		59,100		2,796,021
Questar Corp.		15,700		814,673
UGI Corp.		111,890		3,076,975
				7,059,459
Healthcare Products - 2.04%
Beckman Coulter, Inc.		32,142		2,372,722
Bruker BioSciences Corp. *		87,800		1,355,632
Owens & Minor, Inc.		13,400		618,008
STERIS Corp.		16,000		588,320
				4,934,682
Healthcare Services - 2.14%
Coventry Health Care, Inc. *		19,100		668,882
Health Net, Inc. *		49,600		1,371,440
Healthspring, Inc. *		31,600		627,576
Kindred Healthcare, Inc. *		47,040		1,454,947
Omnicare, Inc.		32,800		1,057,800
				5,180,645
Homebuilders - 0.46%
Walter Industries, Inc.		11,800		1,106,840
Hotels & Restaurants - 0.28%
Bob Evans Farms, Inc.		24,500		687,715
Household Products - 0.73%
Tupperware Brands Corp.		49,600		1,771,712
Industrial Machinery - 4.96%
AGCO Corp. *		41,899		2,582,235
Dover Corp.		26,570		1,312,026
Flowserve Corp.		18,400		2,431,008
Gardner Denver, Inc. *		39,390		1,778,065
Manitowoc Company, Inc.		39,400		992,092
Parker-Hannifin Corp.		38,110		2,441,708
Robbins & Myers, Inc.		10,700		479,895
				12,017,029

 

Mid Cap Intersection Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrials - 0.41%
Harsco Corp.		19,017	$	1,001,055
Insurance - 5.33%
Allied World Assurance Holdings, Ltd.		48,500		1,873,070
Assurant, Inc.		58,200		3,400,626
Axis Capital Holdings, Ltd.		75,900		2,537,337
Everest Re Group, Ltd.		41,206		3,384,249
Unum Group		67,500		1,715,175
				12,910,457
Internet Retail - 0.90%
Expedia, Inc. *		22,100		390,286
Netflix, Inc. *		58,297		1,797,880
				2,188,166
Internet Software - 0.82%
McAfee, Inc. *		49,949		1,975,982
Leisure Time - 0.31%
WMS Industries, Inc. *		22,700		762,720
Manufacturing - 2.22%
Acuity Brands, Inc.		39,460		1,716,905
Ceradyne, Inc. *		19,870		895,342
Nordson Corp.		18,400		986,792
SPX Corp.		14,990		1,787,557
				5,386,596
Medical-Hospitals - 1.67%
LifePoint Hospitals, Inc. *		59,245		1,998,926
Universal Health Services, Inc., Class B		33,100		2,044,918
				4,043,844
Metal & Metal Products - 2.19%
Commercial Metals Company		49,455		1,287,314
Precision Castparts Corp.		21,969		2,268,519
Reliance Steel & Aluminum Company		30,547		1,741,484
				5,297,317
Mining - 1.63%
Cleveland-Cliffs, Inc.		39,080		3,955,678
Office Furnishings & Supplies - 0.61%
Herman Miller, Inc.		32,600		917,364
Steelcase, Inc. Class A		50,100		556,110
				1,473,474
Petroleum Services - 1.52%
Pride International, Inc. *		40,414		1,552,302
SEACOR Holdings, Inc. *		8,800		775,720
Superior Energy Services, Inc. *		28,700		1,350,048
				3,678,070
Pharmaceuticals - 2.11%
Alkermes, Inc. *		64,600		863,702
Amylin Pharmaceuticals, Inc. *		42,300		929,754
Vertex Pharmaceuticals, Inc. *		76,122		2,044,637
Watson Pharmaceuticals, Inc. *		42,500		1,288,175
				5,126,268
Publishing - 0.59%
American Greetings Corp., Class A		47,300		760,584

 

The accompanying notes are an integral part of the financial statements.

231

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Intersection Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Publishing (continued)
Scholastic Corp.		25,800	$	673,380
				1,433,964
Real Estate - 3.57%
Annaly Capital Management, Inc., REIT		75,800		1,133,968
Douglas Emmett, Inc., REIT		21,500		508,905
Forest City Enterprises, Inc., Class A		34,400		989,344
Host Hotels & Resorts, Inc., REIT		121,900		1,743,170
Liberty Property Trust, REIT		22,200		838,272
Mack-California Realty Corp., REIT		21,900		885,198
Sunstone Hotel Investors, Inc., REIT		179,600		2,546,728
				8,645,585
Retail Grocery - 0.52%
SUPERVALU, Inc.		54,700		1,268,493
Retail Trade - 4.24%
Advance Auto Parts, Inc.		11,000		473,440
Aeropostale, Inc. *		57,327		1,998,419
American Eagle Outfitters, Inc.		64,415		969,447
BJ’s Wholesale Club, Inc. *		64,300		2,445,329
Rent-A-Center, Inc. *		31,700		718,322
Ross Stores, Inc.		54,600		2,195,466
Urban Outfitters, Inc. *		41,400		1,474,668
				10,275,091
Semiconductors - 3.76%
Emulex Corp. *		52,800		708,576
Integrated Device Technology, Inc. *		72,700		769,893
Lam Research Corp. *		113,772		4,182,259
LSI Logic Corp. *		214,400		1,425,760
MKS Instruments, Inc. *		39,500		890,330
Triquint Semiconductor, Inc. *		67,500		424,575
Varian Semiconductor Equipment Associates, Inc. *		21,900		707,370
				9,108,763
Software - 3.05%
Activision Blizzard, Inc. *		73,200		2,402,424
BMC Software, Inc. *		101,500		3,304,840
Sybase, Inc. *		49,299		1,696,379
				7,403,643
Steel - 1.07%
AK Steel Holding Corp.		7,400		389,314
Steel Dynamics, Inc.		88,600		2,199,938
				2,589,252
Telephone - 1.19%
CenturyTel, Inc.		57,900		2,236,677
Harris Corp.		12,528		655,966
				2,892,643
Toys, Amusements & Sporting Goods - 0.61%
Hasbro, Inc.		39,600		1,481,040
Transportation - 0.39%
Overseas Shipholding Group, Inc.		13,200		946,968
Trucking & Freight - 1.26%
J.B. Hunt Transport Services, Inc.		27,200		991,440
Landstar Systems, Inc.		17,800		872,556

 

Mid Cap Intersection Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Trucking & Freight (continued)
Oshkosh Corp.		25,400	$	391,668
Werner Enterprises, Inc.		35,300		805,193
				3,060,857
TOTAL COMMON STOCKS (Cost $236,740,113)			$	236,823,666
REPURCHASE AGREEMENTS - 2.20%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $5,330,007 on 09/02/2008, collateralized by $5,390,000 Federal National Mortgage Association, 3.20% due 05/06/2010 (valued at $5,436,354, including interest)	$	5,329,000	$	5,329,000
TOTAL REPURCHASE AGREEMENTS (Cost $5,329,000)			$	5,329,000
Total Investments (Mid Cap Intersection Fund) (Cost $242,069,113) - 99.91%			$	242,152,666
Other Assets in Excess of Liabilities - 0.09%				214,430
TOTAL NET ASSETS - 100.00%			$	242,367,096

 

Mid Cap Stock Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 93.04%
Advertising - 1.40%
Focus Media Holding, Ltd., ADR * (a)		310,500	$	10,159,560
Aerospace - 1.69%
Rolls-Royce Group PLC *		704,792		5,086,731
Teledyne Technologies, Inc. *		115,100		7,174,183
				12,260,914
Aluminum - 0.76%
Century Aluminum Company *		113,100		5,514,756
Apparel & Textiles - 1.49%
ASICS Corp.		679,700		5,988,340
Liz Claiborne, Inc.		297,475		4,822,070
				10,810,410
Auto Parts - 1.01%
Titan International, Inc.		274,525		7,340,799
Automobiles - 1.03%
PACCAR, Inc.		174,700		7,522,582
Banking - 0.39%
Comerica, Inc.		101,700		2,856,753
Biotechnology - 3.53%
Cephalon, Inc. *		178,277		13,659,584
Charles River Laboratories International, Inc. *		183,400		12,032,874
				25,692,458
Building Materials & Construction - 1.15%
Chicago Bridge & Iron Company NV		260,400		8,338,008

 

The accompanying notes are an integral part of the financial statements.

232

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Stock Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services - 3.10%
Ariba, Inc. *		629,600	$	9,274,008
Global Payments, Inc.		109,100		5,259,711
Net 1 UEPS Technologies, Inc. *		299,300		8,027,226
				22,560,945
Cellular Communications - 1.57%
Metropcs Communications, Inc. *		675,700		11,399,059
Chemicals - 5.31%
FMC Corp.		181,300		13,332,802
Kingboard Chemical Holdings, Ltd.		2,055,100		9,247,992
Solutia, Inc. *		412,591		6,931,529
Terra Industries, Inc.		181,500		9,120,375
				38,632,698
Coal - 2.22%
Arch Coal, Inc.		159,400		8,645,856
CONSOL Energy, Inc.		110,300		7,468,413
				16,114,269
Crude Petroleum & Natural Gas - 4.49%
Chesapeake Energy Corp.		189,928		9,192,515
EOG Resources, Inc.		88,300		9,220,286
Forest Oil Corp. *		131,100		7,462,212
Ultra Petroleum Corp. *		99,500		6,780,925
				32,655,938
Drugs & Health Care - 1.48%
Shionogi & Company, Ltd.		475,947		10,729,697
Electrical Equipment - 1.76%
FLIR Systems, Inc. *		358,900		12,812,730
Electronics - 0.88%
Itron, Inc. *		61,400		6,359,812
Energy - 2.40%
Covanta Holding Corp. *		340,500		9,472,710
SunPower Corp., Class A. *		81,800		7,979,590
				17,452,300
Financial Services - 4.34%
Interactive Data Corp.		265,900		8,003,590
Redecard SA		265,600		4,730,287
Western Union Company		680,110		18,784,638
				31,518,515
Gas & Pipeline Utilities - 0.83%
El Paso Corp.		358,300		6,005,108
Healthcare Products - 4.49%
Mindray Medical International, Ltd., ADR		239,900		9,329,711
St. Jude Medical, Inc. *		229,800		10,531,734
The Medicines Company *		151,539		3,691,490
Varian Medical Systems, Inc. *		143,600		9,069,776
				32,622,711
Healthcare Services - 1.29%
McKesson Corp.		162,000		9,360,360
Hotels & Restaurants - 0.55%
Burger King Holdings, Inc.		161,600		4,010,912
Household Products - 2.15%
Jarden Corp. *		607,468		15,593,704

 

Mid Cap Stock Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery - 3.27%
Flowserve Corp.		57,310	$	7,571,797
Manitowoc Company, Inc.		289,200		7,282,056
Pall Corp.		219,200		8,901,712
				23,755,565
Industrials - 1.41%
Aecom Technology Corp. *		319,900		10,224,004
Insurance - 0.36%
Marsh & McLennan Companies, Inc.		82,800		2,643,804
Internet Service Provider - 1.64%
Baidu.com, Inc., SADR *		13,900		4,360,708
Equinix, Inc. *		94,200		7,583,100
				11,943,808
Internet Software - 1.91%
McAfee, Inc. *		351,700		13,913,252
Leisure Time - 2.46%
DreamWorks Animation SKG, Inc., Class A *		323,239		10,304,859
Electronic Arts, Inc. *		155,700		7,599,717
				17,904,576
Life Sciences - 1.67%
Pharmaceutical Product Development, Inc.		296,800		12,109,440
Manufacturing - 2.51%
Hansen Transmissions International NV *		1,337,996		6,836,533
Snap-on, Inc.		200,300		11,421,106
				18,257,639
Metal & Metal Products - 2.37%
Cameco Corp.		322,052		9,687,324
Precision Castparts Corp.		72,900		7,527,654
				17,214,978
Mining - 0.93%
Freeport-McMoRan Copper & Gold, Inc., Class B		75,530		6,746,340
Pharmaceuticals - 4.58%
Alexion Pharmaceuticals, Inc. *		109,800		4,949,784
Alkermes, Inc. *		261,201		3,492,257
Amylin Pharmaceuticals, Inc. *		241,167		5,300,851
Auxilium Pharmaceuticals, Inc. * (a)		136,600		5,369,746
Elan Corp. PLC, SADR *		359,300		4,811,027
Onyx Pharmaceuticals, Inc. *		119,800		4,896,226
Regeneron Pharmaceuticals, Inc. *		205,200		4,456,944
				33,276,835
Railroads & Equipment - 1.07%
Kansas City Southern *		151,700		7,801,931
Retail Trade - 8.71%
Advance Auto Parts, Inc.		246,300		10,600,752
Aeropostale, Inc. *		152,200		5,305,692
BJ’s Wholesale Club, Inc. *		262,210		9,971,846
Dick’s Sporting Goods, Inc. *		402,400		9,210,936
Kohl’s Corp. *		185,000		9,096,450
Staples, Inc.		396,600		9,597,720
The Gap, Inc.		489,000		9,511,050
				63,294,446

 

The accompanying notes are an integral part of the financial statements.

233

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Stock Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Semiconductors - 0.99%
Lam Research Corp. *		196,700	$	7,230,692
Software - 5.90%
BMC Software, Inc. *		289,300		9,419,608
Nuance Communications, Inc. *		217,500		3,436,500
Red Hat, Inc. *		575,200		12,079,200
Solera Holdings, Inc. *		243,800		7,516,354
UbiSoft Entertainment SA *		111,920		10,439,865
				42,891,527
Telecommunications Equipment & Services - 2.08%
Atheros Communications, Inc. *		318,600		10,389,546
NICE Systems, Ltd., ADR *		155,300		4,756,839
				15,146,385
Toys, Amusements & Sporting Goods - 1.21%
Marvel Entertainment, Inc. *		260,300		8,816,361
Travel Services - 0.66%
Ctrip.com International, Ltd., ADR		95,000		4,776,600
TOTAL COMMON STOCKS (Cost $634,813,311)			$	676,273,181
SHORT TERM INVESTMENTS - 2.13%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	15,511,884	$	15,511,884
TOTAL SHORT TERM INVESTMENTS (Cost $15,511,884)			$	15,511,884
REPURCHASE AGREEMENTS - 6.87%
Merrill Lynch Tri-Party Repurchase Agreement dated 08/29/2008 at 2.12% to be repurchased at $49,911,754 on 09/02/2008, collateralized by $181,553,000 Federal National Mortgage Association, 5.50% due 12/01/2022 (valued at $50,899,255, including interest)	$	49,900,000	$	49,900,000
TOTAL REPURCHASE AGREEMENTS (Cost $49,900,000)			$	49,900,000
Total Investments (Mid Cap Stock Fund) (Cost $700,225,195) - 102.04%			$	741,685,065
Liabilities in Excess of Other Assets - (2.04)%				(14,794,310	)
TOTAL NET ASSETS - 100.00%			$	726,890,755

 

Mid Cap Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 95.44%
Advertising - 2.56%
Interpublic Group of Companies, Inc. *		543,206	$	5,106,136
Auto Parts - 2.59%
ArvinMeritor, Inc.		105,300		1,580,553

 

Mid Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Auto Parts (continued)
Genuine Parts Company		84,393	$	3,579,951
				5,160,504
Banking - 3.84%
Comerica, Inc.		66,200		1,859,558
Fifth Third Bancorp		132,700		2,094,006
M&T Bank Corp.		27,500		1,961,850
Zions Bancorp (a)		65,000		1,744,600
				7,660,014
Building Materials & Construction - 1.59%
KBR, Inc.		80,731		1,981,946
Owens Corning, Inc. *		48,800		1,180,472
				3,162,418
Business Services - 3.44%
Arbitron, Inc.		58,000		2,781,680
R.R. Donnelley & Sons Company		146,076		4,072,599
				6,854,279
Chemicals - 2.61%
Eastman Chemical Company		60,562		3,653,100
Valspar Corp.		65,600		1,552,096
				5,205,196
Containers & Glass - 4.44%
Ball Corp.		86,922		3,991,458
Pactiv Corp. *		180,973		4,862,745
				8,854,203
Crude Petroleum & Natural Gas - 1.71%
EOG Resources, Inc.		32,715		3,416,100
Domestic Oil - 1.32%
Range Resources Corp.		56,500		2,622,730
Electrical Equipment - 1.10%
Hubbell, Inc., Class B		50,637		2,203,216
Electrical Utilities - 7.64%
Ameren Corp.		123,442		5,167,282
CMS Energy Corp.		340,723		4,623,611
Northeast Utilities		202,321		5,440,412
				15,231,305
Food & Beverages - 4.44%
Coca-Cola Enterprises, Inc.		195,115		3,330,613
Dean Foods Company *		113,900		2,866,863
Smithfield Foods, Inc. *		132,200		2,658,542
				8,856,018
Gas & Pipeline Utilities - 4.04%
NiSource, Inc.		264,651		4,361,448
Southwest Gas Corp.		32,745		993,811
Transocean, Inc. *		21,271		2,705,671
				8,060,930
Healthcare Products - 1.69%
Covidien, Ltd.		62,200		3,363,154
Healthcare Services - 1.08%
Healthsouth Corp. * (a)		119,400		2,148,006

 

The accompanying notes are an integral part of the financial statements.

234

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hotels & Restaurants - 1.42%
Brinker International, Inc.		149,198	$	2,822,826
Industrial Machinery - 2.42%
Cummins, Inc.		42,768		2,786,763
W.W. Grainger, Inc.		22,588		2,033,597
				4,820,360
Insurance - 3.97%
ACE, Ltd. *		57,963		3,049,433
Conseco, Inc. *		277,363		2,487,946
PartnerRe, Ltd.		34,515		2,378,429
				7,915,808
Internet Software - 2.58%
McAfee, Inc. *		130,054		5,144,936
Manufacturing - 2.52%
Pentair, Inc.		27,600		1,014,300
Snap-on, Inc.		70,434		4,016,147
				5,030,447
Metal & Metal Products - 1.92%
Timken Company		118,644		3,834,574
Office Furnishings & Supplies - 1.17%
OfficeMax, Inc.		191,245		2,340,839
Paper - 1.47%
AbitibiBowater, Inc. * (a)		80,317		528,486
MeadWestvaco Corp.		90,779		2,403,828
				2,932,314
Petroleum Services - 2.07%
Halliburton Company		93,933		4,127,416
Pharmaceuticals - 5.24%
King Pharmaceuticals, Inc. *		437,929		5,009,908
Mylan, Inc. *		421,588		5,434,269
				10,444,177
Publishing - 0.71%
Gannett Company, Inc.		63,200		1,124,328
Idearc, Inc.		171,600		283,140
				1,407,468
Retail Grocery - 3.01%
Safeway, Inc.		107,373		2,828,205
The Kroger Company		115,000		3,176,300
				6,004,505
Retail Trade - 2.48%
Foot Locker, Inc.		168,326		2,742,031
Macy’s, Inc.		105,566		2,197,884
				4,939,915
Sanitary Services - 1.68%
Allied Waste Industries, Inc. *		249,500		3,353,280
Semiconductors - 0.99%
Marvell Technology Group, Ltd. *		139,300		1,965,523
Software - 1.49%
Sybase, Inc. *		86,233		2,967,278

 

Mid Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Telecommunications Equipment & Services - 4.65%
ADC Telecommunications, Inc. *		237,049	$	2,429,752
JDS Uniphase Corp. *		405,475		4,119,626
Tellabs, Inc. *		521,011		2,714,468
				9,263,846
Telephone - 10.31%
CenturyTel, Inc.		112,553		4,347,922
Embarq Corp.		125,900		5,937,445
Qwest Communications International, Inc. (a)		1,381,000		5,220,180
Windstream Corp.		406,900		5,053,698
				20,559,245
Tires & Rubber - 1.25%
Goodyear Tire & Rubber Company *		127,100		2,492,431
TOTAL COMMON STOCKS (Cost $208,428,980)			$	190,271,397
SHORT TERM INVESTMENTS - 4.82%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	9,605,482	$	9,605,482
TOTAL SHORT TERM INVESTMENTS (Cost $9,605,482)			$	9,605,482
REPURCHASE AGREEMENTS - 4.00%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $7,981,507 on 09/02/2008, collateralized by $8,005,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $8,143,487, including interest)	$	7,980,000	$	7,980,000
TOTAL REPURCHASE AGREEMENTS (Cost $7,980,000)			$	7,980,000
Total Investments (Mid Cap Value Fund) (Cost $226,014,462) - 104.26%			$	207,856,879
Liabilities in Excess of Other Assets - (4.26)%				(8,495,554	)
TOTAL NET ASSETS - 100.00%			$	199,361,325

 

Mid Cap Value Equity Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 98.04%
Advertising - 0.56%
Interpublic Group of Companies, Inc. *		53,710	$	504,874
Aerospace - 1.36%
Goodrich Corp.		17,038		873,198
Spirit Aerosystems Holdings, Inc., Class A *		15,670		357,276
				1,230,474
Air Travel - 1.41%
AMR Corp. *		27,517		284,251
Continental Airlines, Inc., Class B *		14,065		228,556

 

The accompanying notes are an integral part of the financial statements.

235

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Air Travel (continued)
Delta Air Lines, Inc. *		26,173	$	212,786
Northwest Airlines *		24,039		235,101
UAL Corp. *		4,898		54,417
US Airways Group, Inc. *		31,110		264,124
				1,279,235
Apparel & Textiles - 1.88%
Liz Claiborne, Inc.		17,279		280,092
Mohawk Industries, Inc. *		6,442		444,820
VF Corp.		12,315		975,964
				1,700,876
Auto Parts - 1.77%
ArvinMeritor, Inc.		36,877		553,524
Genuine Parts Company		5,347		226,820
Johnson Controls, Inc.		5,466		169,009
Magna International, Inc., Class A		2,806		160,699
WABCO Holdings, Inc.		11,182		489,771
				1,599,823
Automobiles - 2.31%
Ford Motor Company * (a)		408,242		1,820,759
General Motors Corp. (a)		27,370		273,700
				2,094,459
Building Materials & Construction - 1.09%
Chicago Bridge & Iron Company NV		18,517		592,914
Foster Wheeler, Ltd. *		4,048		201,145
KBR, Inc.		7,836		192,374
				986,433
Business Services - 2.60%
Computer Sciences Corp. *		15,722		739,406
Deluxe Corp.		11,833		195,363
Dun & Bradstreet Corp.		3,325		305,800
Fluor Corp.		8,418		674,534
Jacobs Engineering Group, Inc. *		3,025		223,306
Pitney Bowes, Inc.		6,426		219,448
				2,357,857
Chemicals - 3.88%
Eastman Chemical Company		26,216		1,581,349
Lubrizol Corp.		15,941		844,714
PPG Industries, Inc.		17,272		1,085,718
				3,511,781
Construction & Mining Equipment - 0.43%
National Oilwell Varco, Inc. *		5,294		390,327
Construction Materials - 0.28%
USG Corp. *		9,080		252,061
Crude Petroleum & Natural Gas - 4.97%
Chesapeake Energy Corp.		9,388		454,379
Hess Corp.		4,420		462,818
Newfield Exploration Company *		22,344		1,010,396
Pioneer Natural Resources Company		20,498		1,294,859
Southwestern Energy Company *		21,145		811,333
Sunoco, Inc.		7,652		339,596
Ultra Petroleum Corp. *		1,912		130,303
				4,503,684

 

Mid Cap Value Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Domestic Oil - 0.07%
Frontier Oil Corp.		3,546	$	68,686
Electrical Equipment - 2.06%
A.O. Smith Corp.		14,168		583,297
Cooper Industries, Ltd., Class A		26,911		1,282,040
				1,865,337
Electrical Utilities - 2.31%
Allegheny Energy, Inc.		4,962		224,928
Consolidated Edison, Inc.		5,419		221,637
DTE Energy Company		5,664		238,794
Mirant Corp. *		6,684		197,713
PG&E Corp.		12,125		501,126
Pinnacle West Capital Corp.		6,451		227,011
Wisconsin Energy Corp.		10,346		483,882
				2,095,091
Electronics - 2.66%
Agilent Technologies, Inc. *		28,651		995,909
Celestica, Inc. *		86,470		726,348
Flextronics International, Ltd. *		76,618		683,432
				2,405,689
Energy - 2.05%
Energy East Corp.		12,975		352,920
McDermott International, Inc. *		14,426		501,015
Sempra Energy		17,311		1,002,653
				1,856,588
Financial Services - 0.57%
Invesco, Ltd.		19,999		512,574
Forest Products - 0.82%
Rayonier, Inc.		16,546		744,405
Gas & Pipeline Utilities - 3.90%
El Paso Corp.		54,654		916,001
Enbridge, Inc.		30,388		1,274,473
NiSource, Inc.		12,988		214,042
Questar Corp.		8,576		445,008
Transocean, Inc. *		5,409		688,025
				3,537,549
Healthcare Services - 0.36%
McKesson Corp.		5,622		324,839
Holdings Companies/Conglomerates - 0.77%
Loews Corp.		7,756		336,843
Textron, Inc.		8,813		362,214
				699,057
Homebuilders - 0.49%
Centex Corp.		5,803		94,125
D.R. Horton, Inc.		9,260		115,379
KB Home		5,747		119,538
Pulte Homes, Inc.		7,738		112,278
				441,320
Household Appliances - 0.91%
Whirlpool Corp.		10,088		820,760
Industrial Machinery - 5.58%
AGCO Corp. *		10,970		676,081

 

The accompanying notes are an integral part of the financial statements.

236

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery (continued)
Cameron International Corp. *		19,931	$	928,585
Cummins, Inc.		9,246		602,470
Ingersoll-Rand Company, Ltd., Class A		35,122		1,297,056
Manitowoc Company, Inc.		25,946		653,320
Parker-Hannifin Corp.		3,182		203,871
Terex Corp. *		13,825		695,259
				5,056,642
Insurance - 12.41%
ACE, Ltd. *		10,565		555,825
Aon Corp.		41,269		1,959,865
Assurant, Inc.		12,875		752,286
Axis Capital Holdings, Ltd.		25,694		858,950
Everest Re Group, Ltd.		23,906		1,963,400
Lincoln National Corp.		11,715		594,653
Marsh & McLennan Companies, Inc.		22,802		728,068
PartnerRe, Ltd.		24,790		1,708,279
Willis Group Holdings, Ltd.		15,224		524,010
XL Capital, Ltd., Class A		79,379		1,595,518
				11,240,854
International Oil - 1.40%
Nabors Industries, Ltd. *		9,118		324,601
Weatherford International, Ltd. *		24,593		948,798
				1,273,399
Internet Software - 0.95%
McAfee, Inc. *		21,661		856,909
Leisure Time - 2.78%
National Cinemedia, Inc.		31,113		348,155
Regal Entertainment Group, Class A		44,745		749,926
Royal Caribbean Cruises, Ltd.		52,139		1,417,138
				2,515,219
Manufacturing - 4.02%
Eaton Corp.		24,737		1,810,254
Reddy Ice Holdings, Inc.		18,994		159,929
Rockwell Automation, Inc.		10,509		496,130
Stanley Works		24,576		1,178,419
				3,644,732
Metal & Metal Products - 0.28%
Timken Company		7,780		251,450
Mining - 0.77%
Freeport-McMoRan Copper & Gold, Inc.,
Class B		7,775		694,463
Paper - 0.73%
MeadWestvaco Corp.		24,868		658,505
Petroleum Services - 2.75%
BJ Services Company		56,717		1,522,851
ENSCO International, Inc.		4,519		306,298
Smith International, Inc.		7,486		521,774
Tesoro Corp.		7,776		144,245
				2,495,168
Pharmaceuticals - 1.92%
Hospira, Inc. *		5,656		228,276
King Pharmaceuticals, Inc. *		26,951		308,319

 

Mid Cap Value Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Pharmaceuticals (continued)
Mylan, Inc. *		93,394	$	1,203,849
				1,740,444
Railroads & Equipment - 2.91%
CSX Corp.		19,514		1,262,165
Kansas City Southern *		26,751		1,375,804
				2,637,969
Real Estate - 3.70%
Avalon Bay Communities, Inc., REIT		6,971		697,100
Boston Properties, Inc., REIT		3,860		395,534
Equity Residential, REIT		20,084		847,545
Simon Property Group, Inc., REIT		7,341		696,514
The St. Joe Company, REIT (a)		13,105		488,423
Ventas, Inc., REIT		4,950		224,829
				3,349,945
Retail Trade - 5.48%
Bed Bath & Beyond, Inc. *		17,996		551,757
Family Dollar Stores, Inc.		47,617		1,186,616
J.C. Penney Company, Inc.		6,404		249,564
Kohl’s Corp. *		20,300		998,151
Macy’s, Inc.		42,233		879,291
Nordstrom, Inc.		8,000		248,800
Ritchie Brothers Auctioneers, Inc. (a)		32,044		847,884
				4,962,063
Sanitary Services - 0.11%
Insituform Technologies, Inc., Class A *		5,411		99,346
Semiconductors - 4.53%
Intersil Corp., Class A		24,624		576,940
LSI Logic Corp. *		129,346		860,151
Maxim Integrated Products, Inc.		35,581		731,190
Microchip Technology, Inc.		23,986		767,792
Micron Technology, Inc. *		88,131		373,675
National Semiconductor Corp.		37,024		793,424
				4,103,172
Software - 0.88%
BMC Software, Inc. *		24,462		796,483
Steel - 0.55%
Nucor Corp.		9,529		500,273
Telecommunications Equipment & Services - 0.38%
Tellabs, Inc. *		66,177		344,782
Telephone - 2.16%
CenturyTel, Inc.		13,139		507,560
Embarq Corp.		9,811		462,687
Qwest Communications International, Inc. (a)		125,912		475,947
Windstream Corp.		41,101		510,474
				1,956,668
Tires & Rubber - 0.31%
Goodyear Tire & Rubber Company *		14,486		284,071
Tobacco - 3.37%
Lorillard, Inc.		42,205		3,048,890

 

The accompanying notes are an integral part of the financial statements.

237

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Toys, Amusements & Sporting Goods - 0.56%
Hasbro, Inc.		13,480	$	504,152
TOTAL COMMON STOCKS (Cost $90,344,599)			$	88,799,378
CONVERTIBLE BONDS - 0.32%
Telephone - 0.32%
Qwest Communications International, Inc. 3.50% due 11/15/2025		302,000		290,737
TOTAL CONVERTIBLE BONDS (Cost $408,455)			$	290,737
SHORT TERM INVESTMENTS - 5.25%
Federal Home Loan Bank Discount Notes zero coupon due 09/02/2008	$	2,500,000	$	2,499,865
John Hancock Cash Investment Trust, 2.5657% (c)(i)		2,258,091		2,258,091
TOTAL SHORT TERM INVESTMENTS (Cost $4,757,956)			$	4,757,956
Total Investments (Mid Cap Value Equity Fund) (Cost $95,511,010) - 103.61%			$	93,848,071
Liabilities in Excess of Other Assets - (3.61)%				(3,270,806	)
TOTAL NET ASSETS - 100.00%			$	90,577,265

 

Natural Resources Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.06%
Coal - 5.06%
CONSOL Energy, Inc.		310,386	$	21,016,236
Peabody Energy Corp.		204,800		12,892,160
				33,908,396
Crude Petroleum & Natural Gas - 15.69%
Devon Energy Corp.		75,200		7,674,160
EOG Resources, Inc.		293,869		30,685,801
Marathon Oil Corp.		286,009		12,890,426
Newfield Exploration Company *		189,052		8,548,931
Noble Energy, Inc.		112,264		8,052,697
Penn West Energy Trust, ADR		152,700		4,483,272
Rosneft Oil Company, GDR *		793,819		6,771,276
Ultra Petroleum Corp. *		115,100		7,844,065
XTO Energy, Inc.		362,332		18,265,156
				105,215,784
Domestic Oil - 4.65%
Denbury Resources, Inc. *		361,000		8,985,290
Suncor Energy, Inc.		388,114		22,223,895
				31,209,185
Gas & Pipeline Utilities - 5.92%
Eni SpA, SADR		101,300		6,589,565
Equitable Resources, Inc.		233,660		11,661,971
OAO Gazprom, SADR		373,900		14,548,765
Transocean, Inc. *		54,579		6,942,449
				39,742,750

 

Natural Resources Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Gold - 3.06%
AngloGold Ashanti, Ltd., SADR		324,841	$	8,744,719
Barrick Gold Corp.		176,056		6,114,425
Gold Fields, Ltd.		618,166		5,656,460
				20,515,604
International Oil - 27.32%
BP PLC, SADR		296,827		17,106,140
Canadian Natural Resources, Ltd.		380,133		32,449,854
ConocoPhillips		80,528		6,644,365
EnCana Corp.		356,354		26,785,282
Exxon Mobil Corp.		235,605		18,850,756
Lukoil Oil Company, ADR		277,127		20,590,536
Petroleo Brasileiro SA, ADR		481,196		25,378,277
Royal Dutch Shell PLC, ADR		289,469		20,123,885
Talisman Energy, Inc.		867,298		15,331,686
				183,260,781
Metal & Metal Products - 11.57%
Alumina, Ltd.		2,969,707		12,637,752
Cameco Corp.		377,922		11,367,894
Companhia Vale Do Rio Doce, SADR *		1,226,604		29,156,377
Sumitomo Metal Industries, Ltd.		1,814,000		8,013,439
Vedanta Resources PLC		497,525		16,427,231
				77,602,693
Mining - 8.38%
Anglo American PLC		115,405		6,134,439
Anglo Platinum, Ltd.		116,910		14,726,545
Freeport-McMoRan Copper & Gold, Inc., Class B		147,230		13,150,584
Teck Cominco, Ltd.		142,400		5,949,203
Xstrata PLC		290,982		16,223,165
				56,183,936
Petroleum Services - 11.62%
Baker Hughes, Inc.		205,300		16,426,053
Halliburton Company		266,102		11,692,522
Petro-Canada		225,131		9,954,700
Reliance Industries, Ltd., GDR		84,391		8,061,595
Total SA, ADR		254,262		18,276,352
Valero Energy Corp.		389,966		13,555,218
				77,966,440
Steel - 2.79%
ArcelorMittal (a)		155,925		12,258,823
POSCO, SADR (a)		60,200		6,447,420
				18,706,243
TOTAL COMMON STOCKS (Cost $560,672,414)			$	644,311,812
PREFERRED STOCKS - 0.18%
Mining - 0.18%
Anglo Platinum, Ltd., 6.38% (b)(k)		26,800		1,201,169
TOTAL PREFERRED STOCKS (Cost $869,924)			$	1,201,169

 

The accompanying notes are an integral part of the financial statements.

238

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Natural Resources Fund (continued)
	Shares or Principal Amount		Value
RIGHTS - 0.00%
Metal & Metal Products - 0.00%
Alumina, Ltd. (Expiration date 09/19/2008) *		781,501	$	0
TOTAL RIGHTS (Cost $0)			$	0
SHORT TERM INVESTMENTS - 2.87%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	19,246,496	$	19,246,496
TOTAL SHORT TERM INVESTMENTS (Cost $19,246,496)			$	19,246,496
REPURCHASE AGREEMENTS - 3.44%
Merrill Lynch Tri-Party Repurchase Agreement dated 08/29/2008 at 2.12% to be repurchased at $23,105,441 on 09/02/2008, collateralized by $24,865,000 Federal National Mortgage Association, 5.50% due 02/01/2038 (valued at $23,562,351, including interest)	$	23,100,000	$	23,100,000
TOTAL REPURCHASE AGREEMENTS (Cost $23,100,000)			$	23,100,000
Total Investments (Natural Resources Fund) (Cost $603,888,834) - 102.55%			$	687,859,477
Liabilities in Excess of Other Assets - (2.55)%				(17,100,778	)
TOTAL NET ASSETS - 100.00%			$	670,758,699

 

Optimized All Cap Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.56%
Advertising - 0.39%
Omnicom Group, Inc.		471	$	19,966
Aerospace - 2.04%
BE Aerospace, Inc. *		1,646		39,422
Goodrich Corp.		414		21,217
Lockheed Martin Corp.		377		43,898
				104,537
Agriculture - 1.27%
Bunge, Ltd.		726		64,875
Air Travel - 1.06%
AMR Corp. *		1,583		16,353
Delta Air Lines, Inc. *		2,487		20,219
US Airways Group, Inc. *		2,121		18,007
				54,579
Auto Parts - 0.54%
LKQ Corp. *		1,471		27,552
Banking - 2.76%
Bank of America Corp.		2,517		78,379
Oriental Financial Group, Inc.		826		14,273

 

Optimized All Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking (continued)
Unibanco - Uniao De Bancos
Brasileiros SA, ADR *		408	$	48,781
				141,433
Business Services - 1.88%
Alliance Data Systems Corp. *		1,003		64,433
Insight Enterprises, Inc. *		1,041		17,322
R.R. Donnelley & Sons Company		530		14,776
				96,531
Cable & Television - 0.35%
Viacom, Inc., Class B *		613		18,071
Chemicals - 0.71%
OM Group, Inc. *		975		36,173
Commercial Services - 0.81%
AerCap Holdings NV *		1,367		18,960
Cenveo, Inc. *		1,543		16,001
Perficient, Inc. *		810		6,432
				41,393
Computers & Business Equipment - 5.91%
Apple, Inc. *		260		44,078
Hewlett-Packard Company		3,231		151,599
International Business Machines Corp.		662		80,585
Research In Motion, Ltd. *		220		26,752
				303,014
Containers & Glass - 0.27%
Ball Corp.		297		13,638
Cosmetics & Toiletries - 0.84%
Colgate-Palmolive Company		567		43,109
Crude Petroleum & Natural Gas - 1.48%
Apache Corp.		219		25,049
Devon Energy Corp.		271		27,656
XTO Energy, Inc.		459		23,138
				75,843
Drugs & Health Care - 0.60%
Qiagen NV *		1,448		30,669
Electrical Equipment - 4.03%
Cooper Industries, Ltd., Class A		1,098		52,309
Emerson Electric Company		3,002		140,494
GrafTech International, Ltd. *		689		14,000
				206,803
Electrical Utilities - 2.70%
Edison International		1,726		79,258
Mirant Corp. *		1,999		59,130
				138,388
Electronics - 3.34%
Amphenol Corp., Class A		1,809		85,964
Avnet, Inc. *		1,363		40,004
Trimble Navigation, Ltd. *		1,332		45,088
				171,056
Energy - 1.65%
Nexen, Inc.		2,702		84,492

 

The accompanying notes are an integral part of the financial statements.

239

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Optimized All Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services - 7.18%
Allied Capital Corp. (a)		1,829	$	26,978
Barclays PLC, SADR		3,146		80,852
Broadridge Financial Solutions, Inc.		1,403		28,018
Lehman Brothers Holdings, Inc.		1,642		26,420
Morgan Stanley		1,165		47,567
National Financial Partners Corp.		10		202
State Street Corp.		336		22,737
TD Ameritrade Holding Corp. *		1,852		37,836
Visa, Inc.		944		71,649
Wells Fargo & Company		859		26,002
				368,261
Food & Beverages - 2.62%
Flowers Foods, Inc.		2,637		69,722
The Coca-Cola Company		1,244		64,775
				134,497
Gas & Pipeline Utilities - 3.54%
Transocean, Inc. *		705		89,676
Williams Companies, Inc.		2,969		91,712
				181,388
Healthcare Products - 7.38%
DENTSPLY International, Inc.		372		14,579
Herbalife, Ltd.		2,189		103,102
Johnson & Johnson		1,240		87,333
St. Jude Medical, Inc. *		972		44,547
Stryker Corp.		1,914		128,602
				378,163
Holdings Companies/Conglomerates - 0.36%
General Electric Company		659		18,518
Hotels & Restaurants - 1.70%
CEC Entertainment, Inc. *		1,038		35,562
McDonald’s Corp.		572		35,492
Yum! Brands, Inc.		457		16,306
				87,360
Household Products - 2.70%
Jarden Corp. *		2,596		66,640
Tupperware Brands Corp.		2,010		71,797
				138,437
Industrial Machinery - 1.11%
Terex Corp. *		1,130		56,828
Industrials - 0.78%
Companhia de Saneamento Basico do
Estado de Sao Paulo, ADR *		896		40,141
Insurance - 5.08%
ACE, Ltd. *		1,194		62,816
Allied World Assurance Holdings, Ltd.		440		16,993
Aspen Insurance Holdings, Ltd.		2,042		55,338
ING Groep NV, SADR		441		13,737
Prudential Financial, Inc.		547		40,320
Willis Group Holdings, Ltd.		2,072		71,318
				260,522
International Oil - 4.53%
ConocoPhillips		893		73,682

 

Optimized All Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
International Oil (continued)
Exxon Mobil Corp.		769	$	61,528
Sasol, Ltd., SADR		1,764		97,002
				232,212
Internet Content - 0.48%
Google, Inc., Class A *		53		24,554
Internet Retail - 1.73% eBay, Inc. *		3,557		88,676
Internet Software - 0.56%
Salesforce.com, Inc. *		512		28,682
Investment Companies - 0.33%
KKR Financial Holdings LLC		1,783		16,725
Leisure Time - 0.78%
Life Time Fitness, Inc. *		720		25,452
Walt Disney Company		445		14,396
				39,848
Life Sciences - 0.49%
PerkinElmer, Inc.		889		25,257
Metal & Metal Products - 0.54%
Metalico, Inc. *		2,151		27,705
Mining - 1.09%
Anglo American PLC, ADR		2,107		56,046
Petroleum Services - 2.34%
ENSCO International, Inc.		424		28,739
Petro-Canada		1,515		66,872
Valero Energy Corp.		706		24,540
				120,151
Pharmaceuticals - 2.80%
Abbott Laboratories		259		14,874
Eli Lilly & Company		587		27,384
Pfizer, Inc.		5,314		101,550
				143,808
Real Estate - 0.76%
Hospitality Properties Trust, REIT		761		17,259
Lexington Corporate Property Trust, REIT		1,446		21,560
				38,819
Retail Trade - 3.08%
Ross Stores, Inc.		2,705		108,768
The Gap, Inc.		954		18,555
The TJX Companies, Inc.		840		30,442
				157,765
Sanitary Services - 2.68%
Allied Waste Industries, Inc. *		3,010		40,454
Stericycle, Inc. *		1,633		96,837
				137,291
Semiconductors - 3.59%
PMC-Sierra, Inc. *		5,135		46,215
QLogic Corp. *		3,461		64,652
Taiwan Semiconductor Manufacturing Company, Ltd., SADR		7,527		73,087
				183,954

 

The accompanying notes are an integral part of the financial statements.

240

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Optimized All Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software - 3.73%
ANSYS, Inc. *		1,323	$	58,675
Compuware Corp. *		3,893		44,497
Microsoft Corp.		1,203		32,830
Nuance Communications, Inc. *		3,493		55,189
				191,191
Steel - 1.35%
ArcelorMittal		193		15,174
United States Steel Corp.		408		54,292
				69,466
Telephone - 2.62%
AT&T, Inc.		3,725		119,163
Nippon Telegraph & Telephone Corp., ADR		611		14,963
				134,126
Transportation - 1.00%
Genco Shipping & Trading, Ltd.		818		51,321
TOTAL COMMON STOCKS (Cost $5,318,345)			$	5,103,834
SHORT TERM INVESTMENTS - 0.50%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	25,611	$	25,611
TOTAL SHORT TERM INVESTMENTS (Cost $25,611)			$	25,611
Total Investments (Optimized All Cap Fund) (Cost $5,343,956) - 100.06%			$	5,129,445
Liabilities in Excess of Other Assets - (0.06)%				(3,104	)
TOTAL NET ASSETS - 100.00%			$	5,126,341

 

Real Estate Equity Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 94.37%
Hotels & Restaurants - 3.11%
Marriott International, Inc., Class A		214,000	$	6,036,940
Starwood Hotels & Resorts Worldwide, Inc.		60,200		2,182,250
				8,219,190
Leisure Time - 1.18%
Gaylord Entertainment Company * (a)		90,100		3,121,965
Paper - 1.44%
Plum Creek Timber Company, Inc.		77,100		3,825,702
Real Estate - 88.64%
Alexandria Real Estate Equities, Inc., REIT		29,800		3,209,758
AMB Property Corp., REIT		177,330		8,049,009
Avalon Bay Communities, Inc., REIT		87,590		8,759,000
Boston Properties, Inc., REIT		83,050		8,510,134
BRE Properties, Inc., Class A, REIT		174,140		8,398,772
Brookfield Properties Corp.		333,500		6,903,450
Camden Property Trust, REIT		166,300		8,117,103
CBL & Associates Properties, Inc., REIT		308,200		6,684,858
Cousins Properties, Inc., REIT (a)		146,500		3,661,035
DCT Industrial Trust, Inc., REIT		601,100		4,484,206

 

Real Estate Equity Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Real Estate (continued)
Douglas Emmett, Inc., REIT		186,000	$	4,402,620
Duke Realty Corp., REIT		230,110		5,759,653
EastGroup Properties, Inc., REIT		106,200		4,721,652
Equity One, Inc., REIT		287,500		6,034,625
Equity Residential, REIT		247,650		10,450,830
Essex Property Trust, Inc., REIT		78,000		9,153,300
Federal Realty Investment Trust, REIT		71,180		5,401,138
Highwoods Properties, Inc., REIT		95,600		3,467,412
Host Hotels & Resorts, Inc., REIT		290,850		4,159,155
Kilroy Realty Corp., REIT		129,600		6,486,480
Kimco Realty Corp., REIT		248,600		9,233,004
LaSalle Hotel Properties, REIT		191,920		5,003,354
Mack-California Realty Corp., REIT		107,910		4,361,722
Post Properties, Inc., REIT		123,400		3,880,930
ProLogis, REIT		150,670		6,487,850
Public Storage, Inc., REIT		65,700		5,802,624
Regency Centers Corp., REIT		162,950		10,098,012
Simon Property Group, Inc., REIT		208,580		19,790,070
SL Green Realty Corp., REIT		79,870		6,868,820
The Macerich Company, REIT		196,320		12,158,098
The St. Joe Company, REIT (a)		96,400		3,592,828
Vornado Realty Trust, REIT		139,200		13,844,832
Weingarten Realty Investors, REIT		192,900		6,375,345
				234,311,679
TOTAL COMMON STOCKS (Cost $271,102,152)			$	249,478,536
CORPORATE BONDS - 3.11%
Real Estate - 3.11%
General Growth Properties, Inc. 3.98% due 04/15/2027 (h)		11,426,000		8,218,939
TOTAL CORPORATE BONDS (Cost $8,762,690)			$	8,218,939
CONVERTIBLE BONDS - 1.07%
Real Estate - 1.07%
Kilroy Realty LP 3.25% due 04/15/2012 (h)		3,488,000		2,824,956
TOTAL CONVERTIBLE BONDS (Cost $3,349,378)			$	2,824,956
SHORT TERM INVESTMENTS - 3.61%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	9,536,714	$	9,536,714
TOTAL SHORT TERM INVESTMENTS (Cost $9,536,714)			$	9,536,714

 

The accompanying notes are an integral part of the financial statements.

241

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Real Estate Equity Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 1.40%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $3,709,701 on 09/02/2008, collateralized by $3,795,000 Federal Home Loan Mortgage Corp., 4.15% due 01/29/2013 (valued at $3,783,236, including interest)	$	3,709,000	$	3,709,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,709,000)			$	3,709,000
Total Investments (Real Estate Equity Fund) (Cost $296,459,934) - 103.56%			$	273,768,145
Liabilities in Excess of Other Assets - (3.56)%				(9,422,638	)
TOTAL NET ASSETS - 100.00%			$	264,345,507

 

Real Estate Securities Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 98.66%
Hotels & Restaurants - 0.47%
Starwood Hotels & Resorts Worldwide, Inc.		14,432	$	523,160
Real Estate - 98.19%
American Campus Communities, Inc., REIT		45,950		1,393,204
Avalon Bay Communities, Inc., REIT		69,024		6,902,400
BioMed Realty Trust, Inc., REIT		121,530		3,254,573
Boston Properties, Inc., REIT		41,100		4,211,517
BRE Properties, Inc., Class A, REIT		51,680		2,492,526
Camden Property Trust, REIT		29,800		1,454,538
Digital Realty Trust, Inc., REIT		67,918		3,115,399
Douglas Emmett, Inc., REIT		82,150		1,944,491
Entertainment Properties Trust, REIT		21,293		1,155,571
Equity Lifestyle Properties, Inc., REIT		41,861		2,079,654
Equity Residential, REIT		106,210		4,482,062
Extra Space Storage, Inc., REIT		53,250		838,688
Federal Realty Investment Trust, REIT		66,896		5,076,068
General Growth Properties, Inc., REIT		103,579		2,685,803
HCP, Inc., REIT		26,025		942,626
Host Hotels & Resorts, Inc., REIT		249,250		3,564,275
Kimco Realty Corp., REIT		46,550		1,728,867
Kite Realty Group Trust, REIT		91,385		1,113,983
LaSalle Hotel Properties, REIT		19,500		508,365
Liberty Property Trust, REIT		76,100		2,873,536
LTC Properties, Inc., REIT		45,031		1,209,983
Maguire Properties, Inc., REIT (a)		48,950		554,114
Medical Properties Trust, Inc., REIT (a)		52,300		577,392
Nationwide Health Properties, Inc., REIT		67,129		2,310,580
Post Properties, Inc., REIT		88,025		2,768,386
ProLogis, REIT		218,542		9,410,419
Public Storage, Inc., REIT		55,880		4,935,322
Regency Centers Corp., REIT		72,570		4,497,163
Saul Centers, Inc., REIT		15,650		715,518
Senior Housing Properties Trust, REIT		99,040		2,147,187
Simon Property Group, Inc., REIT		111,043		10,535,760

 

Real Estate Securities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Real Estate (continued)
SL Green Realty Corp., REIT		1,500	$	129,000
Taubman Centers, Inc., REIT		60,750		2,948,805
The Macerich Company, REIT		46,224		2,862,652
Ventas, Inc., REIT		122,974		5,585,479
Vornado Realty Trust, REIT		75,112		7,470,640
				110,476,546
TOTAL COMMON STOCKS (Cost $101,958,286)			$	110,999,706
SHORT TERM INVESTMENTS - 0.96%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	1,082,669	$	1,082,669
TOTAL SHORT TERM INVESTMENTS (Cost $1,082,669)			$	1,082,669
REPURCHASE AGREEMENTS - 1.25%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $1,410,266 on 09/02/2008, collateralized by $1,445,000 Federal Home Loan Mortgage Corp., 4.15% due 01/29/2013 (valued at $1,440,521, including interest)	$	1,410,000	$	1,410,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,410,000)			$	1,410,000
Total Investments (Real Estate Securities Fund) (Cost $104,450,955) - 100.87%			$	113,492,375
Liabilities in Excess of Other Assets - (0.87)%				(983,219	)
TOTAL NET ASSETS - 100.00%			$	112,509,156

 

Real Return Bond Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 91.35%
Treasury Inflation Protected Securities (d) - 91.35%
0.875% due 04/15/2010 (j)	$	4,290,816	$	4,299,531
1.875% due 07/15/2013 to 07/15/2015 (j)		132,295,540		136,456,707
2.00% due 01/15/2014		1,538,017		1,595,453
2.00% due 07/15/2014 to 01/15/2026 (j)		165,088,950		169,166,284
2.375% due 01/15/2027		12,357,600		12,786,260
2.375% due 04/15/2011 to 01/15/2025 (j)		173,485,345		179,980,862
2.625% due 07/15/2017 (j)		51,313,680		55,699,409
3.00% due 07/15/2012 (j)		36,778,889		39,499,938
3.375% due 01/15/2012 (j)		1,608,451		1,735,368
3.50% due 01/15/2011 (j)		60,085,004		63,943,603
3.625% due 04/15/2028 (j)		8,830,640		10,881,697
3.875% due 01/15/2009 to 04/15/2029 (j)		89,380,436		114,402,904
				790,448,016
TOTAL U.S. TREASURY OBLIGATIONS (Cost $793,727,680)			$	790,448,016

 

The accompanying notes are an integral part of the financial statements.

242

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Real Return Bond Fund (continued)
	Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS - 41.12%
Federal Home Loan Mortgage Corp. - 13.88%
4.50% due 05/15/2017	$	180,772	$	180,958
4.875% due 06/13/2018		100,000		102,071
5.00% due 02/16/2017		4,600,000		4,742,115
5.50% due 02/01/2038 to 08/01/2038		69,214,000		68,307,804
6.00% due 08/01/2038		45,393,727		45,807,813
5.00% due 12/14/2018		1,200,000		952,905
				120,093,666
Federal National Mortgage Association - 26.74%
4.49% due 10/01/2044 (b)		101,735		101,347
5.00% due 04/01/2037 to 05/01/2038		4,430,647		4,259,605
5.00% TBA **		3,500,000		3,361,914
5.50% due 03/01/2034 to 07/01/2038		162,281,475		160,495,493
6.00% due 09/01/2035 to 05/01/2038		22,495,858		22,743,168
6.50% due 06/01/2035 to 07/01/2038		20,292,505		20,905,684
6.50% TBA **		19,000,000		19,535,859
				231,403,070
Government National Mortgage Association - 0.12%
6.00% TBA **		1,000,000		1,014,844
Small Business Administration - 0.38%
4.504% due 02/10/2014		914,570		868,799
4.88% due 11/01/2024		2,470,505		2,372,570
				3,241,369
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $352,736,894)			$	355,752,949

 

FOREIGN GOVERNMENT OBLIGATIONS - 3.05%
Italy - 0.17%
Republic of Italy 2.35% due 09/15/2019	EUR		1,027,420		1,480,658
Japan - 2.88%
Government of Japan
0.80% due 12/10/2015	JPY		530,400,000		4,777,377
1.10% due 12/10/2016			892,320,000		8,128,250
1.20% due 06/10/2017			797,940,000		7,278,797
1.20% due 12/10/2017			274,390,000		2,495,922
1.40% due 06/10/2018			242,520,000		2,237,223
					24,917,569
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $25,422,222)				$	26,398,227
CORPORATE BONDS - 21.66%
Advertising - 0.14%
Omnicom Group, Inc. 5.90% due 04/15/2016		$	1,250,000		1,227,784
Banking - 5.10%
ANZ National International, Ltd. 6.20% due 07/19/2013 (h)			1,900,000		1,906,000
Barclays Bank PLC
5.45% due 09/12/2012			6,100,000		6,094,888
6.05% due 12/04/2017 (h)			5,200,000		4,906,460
7.434% due 09/29/2049 (b)(h)			600,000		530,142
7.70% due 12/31/2049 (b)(h)			200,000		188,082

 

Real Return Bond Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
HBOS PLC 6.75% due 05/21/2018 (h)		$	1,000,000	$	903,145
National Australia Bank, Ltd.
3.2525% due 02/08/2010 (b)(h)			7,600,000		7,598,784
5.35% due 06/12/2013 (h)			1,700,000		1,663,367
Royal Bank of Scotland Group PLC 7.0916% due 10/29/2049	EUR		400,000		482,073
Santander Perpetual SA Unipersonal 6.671% due 10/29/2049 (b)(h)		$	2,500,000		2,378,097
UBS AG/Stamford Branch, MTN 5.75% due 04/25/2018			3,300,000		3,159,252
UBS AG/Stamford Branch, Series DPNT 5.875% due 12/20/2017			900,000		877,377
Unicredit Luxembourg Finance SA 2.8463% due 10/24/2008 (b)(h)			1,100,000		1,099,582
Unicredito Italiano/New York NY, Series YCD 3.0656% due 05/18/2009 (b)			11,000,000		10,991,442
Wachovia Bank NA, BKNT 2.7519% due 12/02/2010 (b)			1,400,000		1,335,554
					44,114,245
Electrical Utilities - 0.08%
Public Service Electric & Gas Company, MTN 5.30% due 05/01/2018			700,000		694,005
Financial Services - 11.77%
Allstate Life Global Funding II, MTN 3.4613% due 05/21/2010 (b)			6,700,000		6,661,194
Allstate Life Global Funding Trusts, MTN 5.375% due 04/30/2013			2,500,000		2,496,915
American Express Bank FSB 5.50% due 04/16/2013			900,000		852,371
American Express Bank FSB, BKNT 6.00% due 09/13/2017			2,200,000		2,021,129
American Express Centurion Bank, BKNT 6.00% due 09/13/2017			2,200,000		2,021,129
American Express Company
7.00% due 03/19/2018			1,560,000		1,532,018
8.15% due 03/19/2038			450,000		459,303
Bear Stearns Companies, Inc.
6.95% due 08/10/2012			2,400,000		2,492,834
7.25% due 02/01/2018			1,000,000		1,036,130
Berkshire Hathaway Finance Corp. 5.40% due 05/15/2018 (h)			7,800,000		7,763,699
C10 Capital SPV, Ltd. 6.722% due 12/01/2049 (b)(h)			400,000		372,284
Capital One Financial Corp. 6.75% due 09/15/2017			1,000,000		955,114
Citigroup Capital XXI 8.30% due 12/21/2057 (b)			1,100,000		992,944
Citigroup Funding, Inc., MTN 3.8519% due 05/07/2010 (b)			600,000		594,772
Citigroup, Inc.
2.8306% due 12/28/2009 (b)			4,000,000		3,915,316
2.8363% due 01/30/2009 (b)			600,000		596,336
5.50% due 04/11/2013			1,300,000		1,253,691
6.125% due 05/15/2018			3,200,000		2,991,846
8.40% due 04/29/2049 (b)			2,800,000		2,377,256
Ford Motor Credit Company LLC 7.25% due 10/25/2011			6,350,000		4,864,360

 

The accompanying notes are an integral part of the financial statements.

243

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Real Return Bond Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Ford Motor Credit Company LLC (continued) 7.80% due 06/01/2012		$	450,000	$	334,199
GATX Financial Corp. 5.80% due 03/01/2016			1,000,000		982,036
General Electric Capital Corp.
5.50% due 09/15/2067 (b)(h)	EUR		100,000		123,848
6.375% due 11/15/2067 (b)		$	800,000		732,707
6.50% due 09/15/2067 (b)(h)	GBP		4,500,000		7,701,640
General Electric Capital Corp., MTN 2.8263% due 12/12/2008 (b)		$	500,000		499,914
Goldman Sachs Group, Inc.
6.15% due 04/01/2018			1,200,000		1,147,880
6.75% due 10/01/2037			5,300,000		4,663,221
Green Valley, Ltd. 8.562% due 01/10/2011 (b)(h)	EUR		400,000		585,998
International Lease Finance Corp., MTN 6.625% due 11/15/2013		$	600,000		534,169
Lehman Brothers Holdings, Inc. 7.00% due 09/27/2027			300,000		267,507
Lehman Brothers Holdings, Inc., MTN
6.20% due 09/26/2014			300,000		281,023
6.875% due 05/02/2018			1,200,000		1,117,230
Longpoint Re, Ltd. 8.0638% due 05/08/2010 (b)(h)			800,000		807,760
Merna Reinsurance, Ltd., Series A 3.4506% due 07/07/2010 (b)			3,500,000		3,338,650
Merrill Lynch & Company, Inc. 6.40% due 08/28/2017			2,300,000		2,086,390
Merrill Lynch & Company, Inc., MTN 6.875% due 04/25/2018			5,000,000		4,605,045
Morgan Stanley 3.035% due 01/18/2011 (b)			2,000,000		1,878,294
Morgan Stanley, MTN
4.9044% due 05/14/2010 (b)			11,500,000		11,368,406
6.625% due 04/01/2018			1,900,000		1,765,334
Mystic Re, Ltd.
11.6819% due 12/05/2008 (b)(h)			500,000		490,750
12.6819% due 06/07/2011 (b)(h)			1,500,000		1,528,041
New York Life Global Funding 4.65% due 05/09/2013 (h)			1,800,000		1,799,714
Nuveen Investments, Inc. 10.50% due 11/15/2015 (h)			500,000		433,750
Pacific Life Global Funding 5.15% due 04/15/2013 (h)			600,000		600,358
Rabobank Nederland 2.8106% due 01/15/2009 (b)(h)			500,000		499,749
Residential Reinsurance 2007, Ltd., Series CL1 9.9319% due 06/07/2010 (b)(h)			2,200,000		2,210,604
TransCapitalInvest, Ltd. for OJSC AK Transneft 7.70% due 08/07/2013 (h)			1,300,000		1,310,321
Vita Capita II, Ltd. 3.6913% due 01/01/2010 (b)(h)			300,000		293,100
Vita Capital III, Ltd., Series B-II 3.9113% due 01/01/2012 (b)(h)			500,000		477,704
Wells Fargo & Company 4.375% due 01/31/2013			1,200,000		1,149,430
					101,865,413

 

Real Return Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Food & Beverages - 0.21%
Kraft Foods, Inc.
6.00% due 02/11/2013	$	900,000	$	920,301
6.125% due 02/01/2018		900,000		883,886
				1,804,187
Gas & Pipeline Utilities - 1.17%
NGPL PipeCo LLC 6.514% due 12/15/2012 (h)		10,000,000		10,144,460
Healthcare Services - 0.02%
UnitedHealth Group, Inc. 4.875% due 02/15/2013		200,000		194,202
Hotels & Restaurants - 0.22%
Yum! Brands, Inc. 6.25% due 03/15/2018		2,000,000		1,935,928
Insurance - 1.41%
American International Group, Inc. 8.175% due 05/15/2058 (b)(h)		1,500,000		1,158,573
American International Group, Inc., MTN 5.85% due 01/16/2018		2,800,000		2,357,597
Foundation Re II, Ltd. 9.5569% due 11/26/2010 (b)(h)		600,000		599,823
Metropolitan Life Global Funding I 5.125% due 04/10/2013 (h)		800,000		792,732
Pricoa Global Funding I 2.9394% due 06/26/2012 (b)(h)		7,600,000		7,287,526
				12,196,251
International Oil - 0.08%
Gaz Capital SA
7.343% due 04/11/2013 (h)		300,000		299,625
8.146% due 04/11/2018 (h)		400,000		395,000
				694,625
Publishing - 0.29%
Pearson Dollar Finance PLC 5.70% due 06/01/2014 (h)		2,500,000		2,462,095
Retail Trade - 0.67%
Black & Decker Corp. 4.75% due 11/01/2014		1,000,000		918,243
Federated Retail Holdings, Inc. 5.90% due 12/01/2016		1,000,000		863,458
Home Depot, Inc. 5.40% due 03/01/2016		1,250,000		1,131,050
Macy’s Retail Holdings, Inc. 7.45% due 07/15/2017		1,000,000		940,697
RPM International, Inc. 6.50% due 02/15/2018		1,000,000		965,140
Target Corp. 6.00% due 01/15/2018		1,000,000		1,009,177
				5,827,765
Software - 0.17%
Oracle Corp. 5.75% due 04/15/2018		1,500,000		1,504,276
Telephone - 0.12%
Qwest Capital Funding, Inc. 7.00% due 08/03/2009		1,000,000		998,750

 

The accompanying notes are an integral part of the financial statements.

244

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Real Return Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Tobacco - 0.21%
Philip Morris International, Inc. 5.65% due 05/16/2018	$	1,800,000	$	1,770,851
TOTAL CORPORATE BONDS (Cost $195,257,345)			$	187,434,837
MUNICIPAL BONDS - 1.09%
New Jersey - 0.07%
Tobacco Settlement Financing Corp. of New Jersey 5.00% due 06/01/2041		900,000		640,791
New York - 0.11%
New York City Municipal Water Finance Authority, Water & Sewer Revenue, Series A 5.00% due 06/15/2038		700,000		707,392
New York City Municipal Water Finance Authority, Water & Sewer Revenue, Series D 4.75% due 06/15/2038		200,000		194,394
				901,786
Ohio - 0.08%
Buckeye Tobacco Settlement Financing Authority 6.00% due 06/01/2042		800,000		676,176
Texas - 0.73%
Dallas Texas Area Rapid Transit 5.00% due 12/01/2036		3,800,000		3,799,696
North Texas Municipal Water District, Texas 5.00% due 09/01/2035		2,540,000		2,546,629
				6,346,325
West Virginia - 0.10%
Tobacco Settlement Finance Authority of West Virginia, Tobacco Settlement Funded 7.467% due 06/01/2047		985,000		878,197
TOTAL MUNICIPAL BONDS (Cost $10,009,622)			$	9,443,275
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.44%
Banc of America Commercial Mortgage, Inc., Series 2006-5, Class A4 5.414% due 09/10/2047		500,000		457,835
BCAP LLC Trust, Series 2006-AA2, Class A1 2.6419% due 01/25/2037 (b)		941,919		561,427
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-3, Class 3A2 4.4859% due 05/25/2033 (b)		293,165		279,367
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A1 4.125% due 03/25/2035 (b)		1,972,533		1,831,700
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A2 4.125% due 03/25/2035 (b)		927,117		886,890
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-5, Class A1 4.45% due 08/25/2035 (b)		577,152		543,631
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-5, Class A2 4.55% due 08/25/2035 (b)		987,065		938,292
Bear Stearns Structured Products, Inc., Series 2007-R7, Class A1 2.66% due 01/26/2037 (b)(h)		3,923,078		3,805,385

 

Real Return Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class 1A1 4.90% due 12/25/2035 (b)	$	108,169	$	102,833
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A1 4.7475% due 08/25/2035 (b)		684,591		652,206
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A2 4.2475% due 08/25/2035 (b)		716,252		677,669
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A3 4.0975% due 08/25/2035 (b)		157,810		145,444
Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4 5.9125% due 06/15/2039 (b)		750,000		683,393
Federal Home Loan Mortgage Corp., Series 2979, Class MB 5.50% due 11/15/2018		2,410,767		2,461,528
Federal National Mortgage Association, Series 2007-114, Class A6 2.6719% due 10/27/2037 (b)		5,000,000		4,809,475
MASTR Alternative Loans Trust, Series 2006-2, Class 2A1 2.8719% due 03/25/2036 (b)		1,145,099		602,445
Residential Accredit Loans, Inc., Series 2006-QO6, Class A1 2.6519% due 06/25/2046 (b)		1,732,054		1,064,779
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2006-5, Class 3A6 6.268% due 07/25/2036		900,000		631,992
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $22,055,959)			$	21,136,291
ASSET BACKED SECURITIES - 3.95%
BA Credit Card Trust, Series 2008-A5, Class A5 3.6669% due 12/16/2013 (b)		7,700,000		7,680,096
Bravo Mortgage Asset Trust, Series 2006-1A, Class A1 2.6019% due 07/25/2036 (b)(h)		230,203		223,788
Citigroup Mortgage Loan Trust Inc, Series 2007-OPX1, Class A5A 5.764% due 01/25/2037		900,000		644,853
Ford Credit Auto Owner Trust, Series 2008-C, Class A2B 3.3669% due 01/15/2011 (b)		8,300,000		8,279,824
Lehman XS Trust, Series 2006-10N, Class 1A1A 2.5519% due 07/25/2046 (b)		132,408		129,615
SLM Student Loan Trust, Series 2008-9, Class A 4.1728% due 04/25/2023 (b)		17,300,000		17,229,805
TOTAL ASSET BACKED SECURITIES (Cost $34,241,326)			$	34,187,981
PREFERRED STOCKS - 0.39%
Banking - 0.39%
Bank of America Corp., 8.00%		1,200,000		1,069,421
Bank of America Corp., Series L, 7.25%		1,000		914,000
Wachovia Corp., 7.98%		1,300,000		976,677

 

The accompanying notes are an integral part of the financial statements.

245

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Real Return Bond Fund (continued)
	Shares or Principal Amount		Value
PREFERRED STOCKS (continued)
Banking (continued)
Wachovia Corp., Series L, 7.50%		500	$	410,550
				3,370,648
TOTAL PREFERRED STOCKS (Cost $4,000,000)			$	3,370,648
TERM LOANS - 0.85%
Financial Services - 0.35%
DaimlerChrysler Financial Company 6.78% due 08/03/2012 (b)		3,764,000		2,997,085
Medical-Hospitals - 0.40%
HCA, Inc., Tranche B 5.0506% due 11/01/2013 (b)		3,743,000		3,507,902
Paper - 0.10%
Georgia Pacific Corp. 4.448% due 12/20/2012 (b)		937,642		885,387
TOTAL TERM LOANS (Cost $8,288,348)			$	7,390,374
OPTIONS - 0.03%
Call Options - 0.03%
Chicago Board of Trade American Purchase Call on U.S. Treasury Bond Futures Expiration 11/21/2008 at $140.00 *		466,000		7,281
Chicago Board of Trade American Purchase Call on U.S. Treasury Note 10 yrs. Futures Expiration 11/21/2008 at $138.00 *		580,000		9,062
EUREX American Call on Euro-Bund Futures Expiration 11/21/2008 at $124.00		21,100,000		3,123
Over The Counter European Style Call on USD-LIBOR Rate Swaption
Expiration 08/03/2009 at $3.45 *		500,000		2,797
Expiration 08/03/2009 at $3.45 *		3,300,000		18,459
Expiration 02/02/2009 at $3.50 *		26,800,000		156,099
Expiration 08/03/2009 at $3.85 *		2,400,000		21,130
				217,951
Put Options - 0.00%
Chicago Board of Trade American Purchase Put on U.S. Treasury Note 10 yrs. Futures Expiration 11/21/2008 at $99.00 *		479,000		7,484
EUREX American Put on Euro-Shatz Futures Expiration 11/21/2008 at $100.00		10,100,000		748
Over The Counter European Style Purchase Put on U.S. Treasury Inflation Index, 1.875% Expiration 09/08/2008 at $98.00 *		90,000,000		1
Over The Counter European Style Purchase Put on U.S. Treasury Inflation Index, 2.00% Expiration 09/08/2008 at $97.25 *		100,000,000		1
				8,234
TOTAL OPTIONS (Cost $408,266)			$	226,185

 

Real Return Bond Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 1.55%
Deutsche Bank Tri-Party Repurchase Agreement dated 08/29/2008 at 1.98% to be repurchased at $6,101,342 on 09/02/2008, collateralized by $4,610,000 U.S. Treasury Notes, 3.875% due 01/15/2009 (valued at $6,225,864, including interest)	$	6,100,000	$	6,100,000
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $7,343,387 on 09/02/2008, collateralized by $7,370,000 Federal Home Loan Mortgage Corp., 4.25% due 07/15/2009 (valued at $7,489,763, including interest)		7,342,000		7,342,000
TOTAL REPURCHASE AGREEMENTS (Cost $13,442,000)			$	13,442,000
SHORT TERM INVESTMENTS - 23.58%
Abbey National North America LLC 2.79% due 11/12/2008	$	25,200,000	$	25,059,384
Bank of Scotland PLC 2.79% due 09/22/2008		12,600,000		12,579,494
BNP Paribas Finance, Inc. 2.79% due 11/10/2008		34,600,000		34,412,295
Danske Corp. 2.69% due 09/18/2008		34,300,000		34,256,429
San Paolo U.S. Finance 2.78% due 09/02/2008		16,200,000		16,198,749
U.S. Treasury Bills zero coupon due 09/11/2008 to 11/28/2008		8,000,000		7,990,975
UBS Finance 2.83% due 09/25/2008		24,000,000		23,954,720
Unicredito Italiano Bank Ireland PLC 3.08% due 09/16/2008		15,200,000		15,180,493
Westpac Banking Corp. 2.70% due 09/18/2008		34,400,000		34,356,140
TOTAL SHORT TERM INVESTMENTS (Cost $203,988,679)			$	203,988,679
Total Investments (Real Return Bond Fund) (Cost $1,663,578,341) - 191.06%			$	1,653,219,462
Liabilities in Excess of Other Assets - (91.06)%				(787,953,005	)
TOTAL NET ASSETS - 100.00%			$	865,266,457

 

Schedule of Securities Sold Short
	Shares or Principal Amount		Value
FEDERAL HOME LOAN MORTGAGE CORP. - 4.64%
Federal Home Loan Mortgage Corp. 5.50%, TBA **	$	14,000,000	$	13,803,132
TOTAL FEDERAL HOME LOAN MORTGAGE CORP. (Proceeds $13,465,703)			$	13,803,132

 

The accompanying notes are an integral part of the financial statements.

246

John Hancock Funds II
    
Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

	Shares or Principal Amount		Value
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 54.74%
Federal National Mortgage Association
5.00%, TBA **	$	2,500,000	$	2,401,367
5.50%, TBA **		154,490,000	$	152,558,875
6.00%, TBA **		7,800,000	$	7,875,563
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Proceeds $160,098,366)			$	162,835,805
U.S. TREASURY BONDS - 10.42%
U.S. Treasury Bonds
4.75%, due 02/15/2037		3,600,000	$	3,783,377
5.00%, due 05/15/2037		24,900,000	$	27,224,639
TOTAL U.S. TREASURY BONDS (Proceeds $30,185,351)			$	31,008,016
U.S. TREASURY NOTES - 30.20%
U.S. Treasury Notes
4.875%, due 05/31/2011		14,300,000	$	15,188,159
4.125%, due 08/31/2012		6,100,000	$	6,383,552
3.625%, due 12/31/2012		1,830,000	$	1,880,753
2.50%, due 03/31/2013		5,200,000	$	5,088,689
3.125%, due 04/30/2013		600,000	$	602,390
4.25%, due 08/15/2014		2,000,000	$	2,113,438
4.75%, due 08/15/2017		9,900,000	$	10,664,161
4.25%, due 11/15/2017		10,240,000	$	10,651,200
3.50%, due 02/15/2018		36,250,000	$	35,542,001
3.875%, due 05/15/2018		1,700,000	$	1,711,024
TOTAL U.S. TREASURY NOTES (Proceeds $89,444,127)			$	89,825,367
Total Securities Sold Short (Real Return Bond Fund) (Proceeds $293,193,547)			$	297,472,320

 

Small Cap Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.20%
Advertising - 2.59% inVentiv Health, Inc. *		150,400	$	3,319,328
Air Travel - 2.47%
Allegiant Travel Company *		102,200		3,169,222
Apparel & Textiles - 3.59%
G-III Apparel Group, Ltd. *		248,800		4,605,288
Auto Parts - 1.71%
Fuel Systems Solutions, Inc. *		42,400		2,197,592
Banking - 4.02%
SVB Financial Group *		92,000		5,156,600
Business Services - 4.23%
3PAR, Inc. *		226,700		2,493,700
Kenexa Corp. *		126,600		2,928,258
				5,421,958
Chemicals - 2.97%
Arch Chemicals, Inc.		63,100		2,315,770

 

Small Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Chemicals (continued)
Penford Corp.		89,700	$	1,489,917
				3,805,687
Commercial Services - 1.32%
Team, Inc. *		44,500		1,695,895
Computers & Business Equipment - 1.61%
Radiant Systems, Inc. *		226,676		2,067,285
Cosmetics & Toiletries - 2.12%
Intermediate Parfums, Inc.		191,250		2,713,837
Crude Petroleum & Natural Gas - 2.57%
Goodrich Petroleum Corp. *		64,700		3,289,995
Domestic Oil - 0.95%
Warren Resources, Inc. *		107,600		1,214,804
Drugs & Health Care - 4.30%
Abaxis, Inc. *		67,300		1,338,597
Parexel International Corp. *		131,400		4,174,578
				5,513,175
Electronics - 3.78%
IPG Photonics Corp. *		237,700		4,841,949
Financial Services - 2.59%
SWS Group, Inc.		164,300		3,315,574
Healthcare Products - 10.51%
Cantel Medical Corp. *		31,371		300,848
Inverness Medical Innovations, Inc. *		116,400		4,134,528
SurModics, Inc. *		52,800		2,057,616
Symmetry Medical, Inc. *		320,400		5,514,084
Zoll Medical Corp. *		42,500		1,477,725
				13,484,801
Healthcare Services - 2.82%
Air Methods Corp. *		125,500		3,623,185
Hotels & Restaurants - 0.06%
McCormick & Schmick’s Seafood Restaurants, Inc. *		8,202		80,462
Industrial Machinery - 5.28%
Chart Industries, Inc. *		89,300		4,123,874
Flow International Corp. *		390,900		2,654,211
				6,778,085
Insurance - 6.10%
Amtrust Financial Services, Inc.		185,300		2,605,318
First Mercury Financial Corp. *		186,700		2,750,091
National Interstate Corp.		127,000		2,467,610
				7,823,019
Internet Content - 2.07%
TheStreet.com, Inc.		373,200		2,649,720
Investment Companies - 5.28%
iShares Russell 2000 Index Fund		83,200		6,136,000
iShares S&P SmallCap 600 Index Fund		9,900		633,204
				6,769,204
Leisure Time - 4.71%
Bally Technologies, Inc. *		60,500		2,070,915

 

The accompanying notes are an integral part of the financial statements.

247

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Leisure Time (continued)
Gaylord Entertainment Company * (a)		114,400	$	3,963,960
				6,034,875
Metal & Metal Products - 1.36%
Dynamic Materials Corp.		56,500		1,738,505
Petroleum Services - 0.84%
Flotek Industries, Inc. *		64,200		1,081,770
Pollution Control - 0.56%
CECO Environmental Corp. *		151,918		723,130
Retail Grocery - 1.74%
United Natural Foods, Inc. *		116,200		2,233,364
Retail Trade - 5.92%
Citi Trends, Inc. *		157,200		3,241,464
Gaiam, Inc., Class A * (a)		115,000		1,463,950
Tractor Supply Company *		67,800		2,889,636
				7,595,050
Semiconductors - 1.52%
Techwell, Inc. *		176,300		1,953,404
Software - 6.59%
Deltek, Inc. *		193,700		1,551,537
DivX, Inc. *		223,300		2,049,894
Double-Take Software, Inc. *		200,700		2,631,177
Synchronoss Technologies, Inc. *		175,800		2,225,628
				8,458,236
Telecommunications Equipment & Services - 1.59%
Aruba Networks, Inc. *		325,000		2,044,250
Toys, Amusements & Sporting Goods - 0.07%
Russ Berrie & Company, Inc. *		11,769		89,327
Transportation - 1.36%
Dynamex, Inc. *		59,092		1,742,032
TOTAL COMMON STOCKS (Cost $120,301,571)			$	127,230,608
SHORT TERM INVESTMENTS - 4.48%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	5,737,731	$	5,737,731
TOTAL SHORT TERM INVESTMENTS (Cost $5,737,731)			$	5,737,731

 

Small Cap Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 1.23%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $1,579,298 on 09/02/2008, collateralized by $1,260,000 Federal National Mortgage Association, 7.125% due 01/15/2030 (valued at $1,615,950, including interest)	$	1,579,000	$	1,579,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,579,000)			$	1,579,000
Total Investments (Small Cap Fund) (Cost $127,618,302) - 104.91%			$	134,547,339
Liabilities in Excess of Other Assets - (4.91)%				(6,291,271	)
TOTAL NET ASSETS - 100.00%			$	128,256,068

 

Small Cap Index Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 92.85%
Advertising - 0.22%
Greenfield Online, Inc. *		2,918	$	50,627
inVentiv Health, Inc. *		3,447		76,075
Marchex, Inc., Class B (a)		2,502		28,198
ValueClick, Inc. *		9,829		126,696
				281,596
Aerospace - 1.56%
AAR Corp. *		4,055		64,353
Aerovironment, Inc. *		1,232		41,223
Argon ST, Inc. *		1,480		36,955
Curtiss-Wright Corp.		4,672		251,681
Ducommun, Inc.		1,221		32,320
Esterline Technologies Corp. *		3,064		173,085
GenCorp, Inc. *		6,430		50,218
HEICO Corp. (a)		2,354		83,873
Herley Industries, Inc. *		1,684		32,333
Integral Systems, Inc. *		943		42,425
LMI Aerospace, Inc. *		1,037		24,463
Moog, Inc., Class A *		4,524		214,438
Orbital Sciences Corp., Class A *		6,122		161,866
Teledyne Technologies, Inc. *		3,701		230,683
TransDigm Group, Inc. *		3,505		131,648
Triumph Group, Inc.		1,724		94,372
Woodward Governor Company		6,235		288,867
				1,954,803
Agriculture - 0.28%
AgFeed Industries, Inc. *		2,082		24,110
Alico, Inc.		478		20,626
Andersons, Inc.		1,866		83,895
Cadiz, Inc. * (a)		1,635		31,899
Fresh Del Monte Produce, Inc. *		4,261		98,898
Maui Land & Pineapple, Inc. *		640		17,171
Omega Protein Corp. *		2,006		27,241

 

The accompanying notes are an integral part of the financial statements.

248

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Agriculture (continued)
Tejon Ranch Company *		1,220	$	41,736
				345,576
Air Travel - 0.53%
Airtran Holdings, Inc. *		12,467		29,921
Alaska Air Group, Inc. *		3,724		78,241
Allegiant Travel Company *		1,477		45,802
Hawaiian Holdings, Inc. *		4,230		38,197
JetBlue Airways Corp. * (a)		17,810		108,107
Republic Airways Holdings, Inc. *		3,702		31,985
SkyWest, Inc.		5,951		101,703
UAL Corp. *		12,903		143,352
US Airways Group, Inc. *		9,672		82,115
				659,423
Apparel & Textiles - 1.74%
American Apparel, Inc. *		3,570		31,952
Bebe Stores, Inc.		3,989		38,693
Brown Shoe, Inc.		4,363		66,318
Carter’s, Inc. *		5,922		109,024
Cherokee, Inc. (a)		1,032		22,735
Columbia Sportswear Company		1,305		52,709
Crocs, Inc. * (a)		8,639		35,852
Deckers Outdoor Corp. *		1,348		153,254
G & K Services, Class A		2,045		70,532
G-III Apparel Group, Ltd. *		1,600		29,616
Gymboree Corp. *		2,916		114,453
Iconix Brand Group, Inc. * (a)		6,041		78,110
Interface, Inc., Class A		5,570		73,357
Jos. A. Bank Clothiers, Inc. * (a)		1,874		48,705
K-Swiss, Inc., Class A		2,856		48,980
Lululemon Athletica, Inc. *		1,883		36,474
Maidenform Brands, Inc. *		2,472		37,327
Movado Group, Inc.		1,742		40,397
Oxford Industries, Inc.		1,545		35,303
Perry Ellis International, Inc. *		1,256		21,427
Quiksilver, Inc. *		13,151		101,394
Skechers U.S.A., Inc., Class A *		3,380		64,626
Stage Stores, Inc.		3,961		63,059
Steven Madden, Ltd. *		1,918		48,238
Timberland Company, Class A *		4,985		84,047
True Religion Apparel, Inc. * (a)		1,783		48,408
Under Armour, Inc., Class A * (a)		3,397		114,513
Unifi, Inc. *		6,653		26,545
Unifirst Corp.		1,484		63,857
Volcom, Inc. *		1,922		34,289
Warnaco Group, Inc. *		4,695		242,121
Weyco Group, Inc.		354		11,254
Wolverine World Wide, Inc.		5,155		135,731
				2,183,300
Auto Parts - 0.82%
Accuride Corp. *		3,956		5,776
American Axle & Manufacturing Holdings, Inc.		4,760		23,134
Amerigon, Inc. *		2,518		17,450
ArvinMeritor, Inc.		7,592		113,956
Commercial Vehicle Group, Inc. *		2,405		24,627
Dana Holding Corp. *		10,416		66,037

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Auto Parts (continued)
Exide Technologies *		7,839	$	96,733
Federal Signal Corp.		5,023		80,519
Fuel Systems Solutions, Inc. *		1,277		66,187
Hayes Lemmerz International, Inc. *		11,151		28,212
Lear Corp. *		6,576		82,594
Modine Manufacturing Company		3,401		53,804
O’Reilly Automotive, Inc. *		1,978		57,599
Pep Boys - Manny, Moe & Jack		4,482		39,442
Superior Industries International, Inc. (a)		2,413		42,396
Tenneco, Inc. *		4,823		70,464
Titan International, Inc.		3,547		94,847
Visteon Corp. *		14,094		45,383
Wonder Auto Technology, Inc. *		1,770		14,921
				1,024,081
Auto Services - 0.11%
Dollar Thrifty Automotive Group, Inc. *		2,441		11,351
Midas, Inc. *		1,695		24,357
Monro Muffler Brake, Inc.		2,693		55,826
RSC Holdings, Inc. * (a)		4,982		50,617
				142,151
Automobiles - 0.15%
Americas Car Mart, Inc. *		1,276		24,129
Asbury Automotive Group, Inc.		3,275		39,759
Group 1 Automotive, Inc.		2,378		50,318
Rush Enterprises, Inc., Class A *		5,340		70,435
				184,641
Banking - 6.27%
1st Source Corp.		1,800		39,114
Abington Bancorp, Inc.		3,266		32,301
AMCORE Financial, Inc.		2,969		26,095
Ameris Bancorp		2,235		26,865
BancFirst Corp.		944		45,444
Banco Latinoamericano de Exportaciones, S.A.		2,978		53,902
Bank Mutual Corp.		5,566		67,070
Bank of the Ozarks, Inc. (a)		1,605		35,904
BankFinancial Corp.		2,529		37,733
Beneficial Mutual Bancorp, Inc. *		3,825		44,370
Berkshire Hill Bancorp, Inc.		1,376		36,602
Boston Private Financial Holdings, Inc. (a)		4,420		39,515
Brookline Bancorp, Inc.		6,606		67,910
Capital City Bank Group, Inc. (a)		1,611		39,035
Capitol Bancorp, Ltd. (a)		2,036		31,293
Cascade Bancorp (a)		2,835		22,623
Cathay General Bancorp, Inc.		5,322		103,034
Central Pacific Financial Corp.		3,241		38,568
Chemical Financial Corp. (a)		2,734		78,821
Citizens Banking Corp. (a)		8,336		30,593
City Bank (a)		1,789		21,736
CoBiz, Inc.		2,729		29,282
Colonial Bancgroup, Inc. (a)		20,906		132,126
Columbia Banking System, Inc.		2,089		29,246
Community Bank Systems, Inc.		3,222		72,817
Community Trust Bancorp, Inc.		1,857		62,284
Corus Bankshares, Inc. (a)		4,395		17,448

 

The accompanying notes are an integral part of the financial statements.

249

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking (continued)
CVB Financial Corp.		7,268	$	78,131
Danvers Bancorp, Inc.		2,372		28,369
Dime Community Bancorp, Inc.		2,706		44,433
East West Bancorp, Inc. (a)		6,845		85,357
Enterprise Financial Services Corp. (a)		491		9,211
ESSA Bancorp, Inc.		2,523		33,758
F.N.B. Corp.		9,217		108,115
First BanCorp (PR)		7,599		71,811
First Bancorp		1,995		29,925
First Busey Corp. (a)		3,003		42,522
First Commonwealth Financial Corp. (a)		8,047		91,977
First Community Bancshares, Inc.		1,188		37,933
First Financial BanCorp		4,446		57,887
First Financial Bankshares, Inc.		2,330		114,333
First Financial Corp.		1,366		56,662
First Financial Holdings, Inc.		1,574		34,376
First Merchants Corp.		2,187		42,187
First Midwest BanCorp, Inc.		5,259		117,696
First Niagara Financial Group, Inc.		11,494		171,950
First Place Financial Corp.		2,380		24,181
First South Bancorp, Inc. (a)		394		6,962
FirstFed Financial Corp. *		1,807		28,370
FirstMerit Corp.		8,597		174,003
Flushing Financial Corp.		2,470		42,953
Frontier Financial Corp. (a)		5,267		58,727
Glacier Bancorp, Inc.		5,874		125,234
Greene County Bancshares, Inc.		1,635		25,261
Greenhill & Company, Inc. (a)		1,802		119,112
Guaranty Bancorp *		7,098		39,962
Guaranty Financial Group, Inc. * (a)		4,039		19,347
Hancock Holding Company		2,797		137,193
Hanmi Financial Corp.		4,940		25,243
Harleysville National Corp.		3,798		55,831
Heartland Financial USA, Inc. (a)		1,172		25,233
Home Bancshares, Inc. (a)		1,737		41,740
IBERIABANK Corp.		1,438		77,983
Independent Bank Corp.		1,997		55,237
Integra Bank Corp.		2,857		18,313
International Bancshares Corp.		5,471		141,371
Investors Bancorp, Inc. *		4,933		72,170
Lakeland Bancorp, Inc.		2,657		31,353
Lakeland Financial Corp.		1,698		34,588
MainSource Financial Group, Inc.		2,293		41,526
MB Financial, Inc.		3,836		106,756
Midwest Banc Holdings, Inc. (a)		3,164		17,623
Nara Bancorp, Inc.		2,822		30,901
National Penn Bancshares, Inc. (a)		8,776		125,321
NBT Bancorp, Inc.		3,505		87,940
NewAlliance Bancshares, Inc.		11,410		156,431
Northfield Bancorp, Inc. *		2,450		29,621
Northwest Bancorp, Inc. (a)		2,016		55,924
OceanFirst Financial Corp.		1,369		24,710
Old National Bancorp		7,037		122,655
Old Second Bancorp, Inc.		1,871		31,676
Oriental Financial Group, Inc.		2,634		45,516
Oritani Financial Corp. *		1,575		26,555

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking (continued)
Pacific Capital Bancorp (a)		5,034	$	74,050
PacWest Bancorp		2,729		61,894
Park National Corp. (a)		1,237		75,828
Peoples Bancorp, Inc.		1,495		30,707
Pinnacle Financial Partners, Inc. *		2,501		63,325
PremierWest Bancorp (a)		2,940		23,461
PrivateBancorp, Inc. (a)		2,100		64,344
Prosperity Bancshares, Inc.		4,198		134,210
Provident Bankshares Corp. (a)		3,900		30,186
Provident Financial Services, Inc.		6,324		96,441
Provident New York Bancorp		4,725		65,394
Renasant Corp.		2,453		46,386
Republic Bancorp, Inc., Class A		1,141		33,808
S & T Bancorp, Inc.		2,612		87,659
S.Y. Bancorp, Inc.		1,807		51,030
Sandy Spring Bancorp, Inc.		2,232		39,953
SCBT Financial Corp.		915		30,954
Seacoast Banking Corp. of Florida (a)		2,218		19,474
Sierra Bancorp (a)		1,253		19,797
Signature Bank *		3,257		96,310
Simmons First National Corp., Class A		1,656		47,064
Southside Bancshares, Inc.		1,683		36,605
Southwest Bancorp, Inc.		2,123		35,751
Sterling Bancorp		2,356		36,730
Sterling Bancshares, Inc.		7,923		77,962
Sterling Financial Corp.		5,756		58,654
Suffolk Bancorp		1,298		46,118
Sun Bancorp, Inc. of New Jersey *		2,338		27,588
Susquehanna Bancshares, Inc.		9,096		145,354
SVB Financial Group *		3,155		176,838
Texas Capital Bancshares, Inc. *		2,734		42,678
The South Financial Group, Inc.		8,487		57,712
Tompkins Trustco, Inc.		737		33,371
Trico Bancshares		2,054		33,768
TrustCo Bank Corp., NY (a)		8,594		84,049
Trustmark Corp.		5,317		102,033
UCBH Holdings, Inc. (a)		11,806		69,065
Umpqua Holdings Corp. (a)		6,498		90,712
Union Bankshares Corp.		637		14,466
United Bankshares, Inc.		4,113		105,910
United Community Banks, Inc. (a)		4,370		51,391
United Financial Bancorp, Inc.		2,510		32,103
United Security Bancshares (a)		755		10,925
Univest Corp. of Pennsylvania		618		17,854
Washington Trust Bancorp, Inc.		527		12,948
WesBanco, Inc.		2,951		73,126
West Coast Bancorp		2,164		23,761
WestAmerica Bancorp		3,096		158,515
Western Alliance Bancorp *		2,128		27,664
Westfield Financial, Inc.		4,170		42,617
Wilshire Bancorp, Inc.		2,510		34,061
Wintrust Financial Corp.		2,678		62,264
WSFS Financial Corp.		832		44,487
				7,861,241
Biotechnology - 1.95%
Acorda Therapeutics, Inc. *		3,394		95,541

 

The accompanying notes are an integral part of the financial statements.

250

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Biotechnology (continued)
Affymetrix, Inc. *		7,151	$	61,356
Alnylam Pharmaceuticals, Inc. *		3,696		109,586
AMAG Pharmaceuticals, Inc. *		1,781		68,907
Arena Pharmaceuticals, Inc. *		8,032		48,754
Arqule, Inc. *		5,045		17,758
Bio Reference Labs, Inc. *		1,289		36,517
BioMimetic Therapeutics, Inc. *		1,496		17,234
Bio-Rad Laboratories, Inc., Class A *		1,939		208,636
Cougar Biotechnology, Inc. *		1,581		54,450
Cytokinetics, Inc. *		4,394		22,849
Discovery Laboratories, Inc. * (a)		10,883		21,766
Exelixis, Inc. *		11,231		63,904
Genomic Health, Inc. * (a)		1,498		33,480
Geron Corp. * (a)		8,522		39,116
GTx, Inc. *		2,008		35,562
Human Genome Sciences, Inc. *		14,277		105,793
Idera Pharmaceuticals, Inc. *		2,249		32,880
Immucor, Inc. *		7,243		233,297
Integra LifeSciences Holdings Corp. *		1,860		90,192
Intermune, Inc. * (a)		3,398		64,460
Lexicon Genetics, Inc. *		9,523		17,713
Life Sciences Research, Inc. *		996		35,258
Martek Biosciences Corp. *		3,366		112,458
Medarex, Inc. *		13,302		98,169
Medivation, Inc. *		2,745		68,049
Momenta Pharmaceuticals, Inc. *		2,589		37,126
Myriad Genetics, Inc. *		4,614		314,675
Nabi Biopharmaceuticals *		6,149		35,418
Nektar Therapeutics *		10,064		39,954
Neurocrine Biosciences, Inc. *		4,535		23,446
Orexigen Therapeutics, Inc. *		2,337		27,179
Osiris Therapeutics, Inc. * (a)		1,654		25,406
Pharmanet Development Group, Inc. *		2,019		52,696
Progenics Pharmaceuticals, Inc. *		2,795		38,403
Sangamo Biosciences, Inc. * (a)		3,892		38,881
Tercica, Inc. *		2,105		18,798
				2,445,667
Broadcasting - 0.34%
Belo Corp., Class A		11,783		86,369
CKX, Inc. *		6,104		48,649
Cox Radio, Inc., Class A *		2,890		32,223
Cumulus Media, Inc., Class A *		3,885		18,221
Entercom Communications Corp.		2,917		17,823
Entravision Communications Corp., Class A *		6,687		21,398
Fisher Communications, Inc. *		883		30,702
Global Traffic Network, Inc. *		1,703		16,179
Gray Television, Inc.		5,416		13,323
Journal Communications, Inc.		4,934		25,213
Mediacom Communications Corp., Class A *		4,969		41,740
Sinclair Broadcast Group, Inc., Class A		5,835		41,370
World Wrestling Entertainment, Inc., Class A		2,278		37,063
				430,273
Building Materials & Construction - 0.95%
Apogee Enterprises, Inc.		3,023		60,460
Beacon Roofing Supply, Inc. *		4,749		77,314

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Building Materials & Construction (continued)
China Architectural Engineering, Inc. * (a)		2,016	$	16,733
Drew Industries, Inc. *		2,108		33,791
Dycom Industries, Inc. *		4,203		67,374
EMCOR Group, Inc. *		7,210		245,645
Granite Construction, Inc.		3,420		125,445
Griffon Corp. *		3,044		37,289
Interline Brands, Inc. *		3,398		54,538
LSI Industries, Inc.		2,287		19,737
NCI Building Systems, Inc. *		2,056		78,704
Orion Marine Group, Inc. *		2,389		31,033
Perini Corp. *		2,816		75,215
Quanex Building Products Corp.		3,830		63,042
Sterling Construction Company, Inc. *		1,304		24,059
Texas Industries, Inc.		2,392		125,987
Trex Company, Inc. * (a)		1,835		34,039
U.S. Concrete, Inc. *		4,552		19,027
				1,189,432
Business Services - 4.90%
3PAR, Inc. *		3,015		33,165
ABM Industries, Inc.		4,523		118,864
Acxiom Corp.		6,389		92,321
Administaff, Inc.		2,227		61,020
AMERCO, Inc. * (a)		984		41,013
Arbitron, Inc.		2,829		135,679
Ariba, Inc. *		8,899		131,082
Black Box Corp.		1,855		66,483
Bowne & Company, Inc.		2,934		35,501
CDI Corp.		1,385		34,764
China Security & Surveillance Technology, Inc. * (a)		2,765		49,355
Chindex International, Inc. *		1,786		20,914
Coinstar, Inc. *		2,933		96,554
Compass Diversified Trust		2,761		35,451
Compucredit Corp. * (a)		1,690		8,771
comScore, Inc. *		1,885		38,454
COMSYS IT Partners, Inc. *		1,589		18,814
Constant Contact, Inc. * (a)		2,171		37,124
Core-Mark Holding Company, Inc. *		1,114		32,863
CoStar Group, Inc. * (a)		2,061		108,841
CRA International, Inc. *		1,183		47,190
CSG Systems International, Inc. *		3,773		71,310
Deluxe Corp.		5,349		88,312
DG Fastchannel, Inc. *		1,688		39,719
DMRC Corp. *		684		10,652
Electro Rent Corp.		2,371		32,293
Ennis Business Forms, Inc.		2,823		46,608
Euronet Worldwide, Inc. *		4,925		92,541
Exponent, Inc. *		1,577		48,509
EZCORP, Inc., Class A *		4,077		63,560
Fair Isaac Corp.		5,026		116,101
Forrester Research, Inc. *		1,660		57,419
Gartner Group, Inc., Class A *		6,146		162,316
Gevity HR, Inc.		2,802		23,117
Global Cash Access, Inc. *		4,352		26,068
Global Sources, Ltd. * (a)		1,954		20,849

 

The accompanying notes are an integral part of the financial statements.

251

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
GSI Commerce, Inc. *		2,490	$	40,039
Harte-Hanks, Inc.		3,897		48,128
Healthcare Services Group, Inc.		4,633		90,251
Heidrick & Struggles International, Inc.		1,795		54,496
Hill International, Inc. *		2,494		48,010
Hudson Highland Group, Inc. *		2,725		25,097
Huron Consulting Group, Inc. *		2,003		129,153
infoGROUP, Inc.		3,785		24,981
Informatica Corp. *		9,208		155,339
Insight Enterprises, Inc. *		4,910		81,702
Intervoice Brite, Inc. *		4,420		36,332
Jackson Hewitt Tax Service, Inc.		2,997		51,459
Kelly Services, Inc., Class A		2,746		53,108
Kendle International, Inc. *		1,371		67,796
Kenexa Corp. *		2,401		55,535
Kforce, Inc. *		3,319		35,447
Korn/Ferry International *		4,817		85,646
LECG Corp. *		2,902		23,651
Macrovision Solutions Corp. *		8,534		132,448
MAXIMUS, Inc.		1,914		70,818
McGrath Rentcorp		2,465		70,253
Michael Baker Corp. *		864		29,912
MPS Group, Inc. *		9,733		112,124
Navigant Consulting Company *		5,018		86,862
Net 1 UEPS Technologies, Inc. *		4,687		125,705
On Assignment, Inc. *		3,851		36,392
PC Mall, Inc. *		1,253		11,991
Perot Systems Corp., Class A *		8,923		158,829
PHH Corp. *		5,595		85,324
Pre-Paid Legal Services, Inc. * (a)		855		38,167
PRG-Schultz International, Inc. *		1,906		22,472
Quest Software, Inc. *		7,460		110,333
R.H. Donnelley Corp. *		7,346		27,548
Resources Connection, Inc. *		4,752		114,903
Rollins, Inc.		4,397		78,135
ScanSource, Inc. *		2,764		83,169
Schawk, Inc., Class A		1,793		28,258
Seachange International, Inc. *		3,580		30,716
SonicWALL, Inc. *		6,088		39,816
Sotheby’s		6,943		187,044
Sourcefire, Inc. *		2,532		19,876
Spherion Corp. *		5,971		30,930
SRA International, Inc., Class A *		4,364		102,467
Standard Parking Corp. *		1,927		42,066
Stanley, Inc. *		933		31,778
SuccessFactors, Inc. *		2,563		28,193
SYNNEX Corp. *		1,765		40,577
Syntel, Inc.		1,352		44,711
TeleTech Holdings, Inc. *		4,053		62,497
Tetra Tech, Inc. *		6,106		174,510
The Hackett Group, Inc. *		4,706		30,118
TrueBlue, Inc. *		4,574		75,883
Tyler Technologies, Inc. *		4,008		64,970
Viad Corp.		2,162		67,627
Volt Information Sciences, Inc. *		1,357		19,025
VSE Corp.		925		33,920

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
Watson Wyatt Worldwide, Inc., Class A		4,391	$	257,269
Wind River Systems, Inc. *		7,520		83,096
				6,140,499
Cable & Television - 0.17%
Charter Communications, Inc., Class A * (a)		44,451		46,674
Knology, Inc. *		3,183		32,148
Lin TV Corp. *		3,129		19,243
Outdoor Channel Holdings, Inc. *		2,504		20,007
TiVo, Inc. *		10,900		92,214
				210,286
Cellular Communications - 0.26%
Brightpoint, Inc. *		5,236		45,082
iPCS, Inc. *		1,851		37,020
Novatel Wireless, Inc. *		3,335		20,777
RF Micro Devices, Inc. *		27,128		105,257
Syniverse Holdings, Inc. *		5,329		88,408
USA Mobility, Inc. *		2,937		33,100
				329,644
Chemicals - 2.12%
A. Schulman, Inc.		2,912		70,529
Albany Molecular Research, Inc. *		2,456		42,808
American Vanguard Corp. (a)		2,079		30,852
Arch Chemicals, Inc.		2,605		95,603
Balchem Corp.		2,011		54,880
Calgon Carbon Corp. * (a)		4,269		91,058
Cambrex Corp. *		3,333		21,698
Ferro Corp.		4,572		100,767
H.B. Fuller Company		5,449		142,055
Hercules, Inc.		11,635		250,734
ICO, Inc. *		3,248		18,806
Innophos Holdings, Inc.		1,110		41,614
Innospec, Inc.		2,536		39,790
Landec Corp. *		2,894		27,175
LSB Industries, Inc. *		1,856		44,804
Metabolix, Inc. *		2,174		25,066
Minerals Technologies, Inc.		1,955		128,404
Newmarket Corp.		1,385		94,097
Olin Corp.		7,713		207,557
OM Group, Inc. *		3,141		116,531
Penford Corp.		1,448		24,051
PolyOne Corp. *		9,810		80,540
Quaker Chemical Corp.		1,158		34,277
Rockwood Holdings, Inc. *		4,330		163,891
Sensient Technologies Corp.		4,962		144,940
ShengdaTech, Inc. * (a)		3,257		30,942
Solutia, Inc. *		6,402		107,554
Spartech Corp.		3,293		34,675
Stepan Company		734		43,181
Valence Technology, Inc. *		5,617		20,165
W. R. Grace & Company *		7,489		196,886
Westlake Chemical Corp.		1,993		37,827
Zep, Inc.		2,306		45,175
Zoltek Companies, Inc. * (a)		2,870		48,876
				2,657,808

 

The accompanying notes are an integral part of the financial statements.

252

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Coal - 0.24%
International Coal Group, Inc. * (a)		13,239	$	135,435
James River Coal Company *		2,633		111,034
National Coal Corp. *		2,892		24,061
Westmoreland Coal Company *		1,201		24,236
				294,766
Colleges & Universities - 0.09%
Corinthian Colleges, Inc. *		8,831		117,187
Commercial Services - 0.84%
CBIZ, Inc. *		4,855		41,267
Cenveo, Inc. *		5,096		52,846
Chemed Corp.		2,441		106,769
DynCorp International, Inc. *		2,554		40,328
Exlservice Holdings, Inc. *		1,540		16,786
First Advantage Corp., Class A *		1,233		20,628
Great Lakes Dredge & Dock Company		4,500		33,705
HMS Holdings Corp. *		2,638		65,396
Live Nation, Inc. *		7,880		126,474
Odyssey Marine Exploration, Inc. * (a)		5,493		27,410
PeopleSupport, Inc. *		2,489		30,241
Perficient, Inc. *		3,381		26,845
Pool Corp. (a)		5,041		122,295
Providence Service Corp. *		1,382		17,703
Riskmetrics Group, Inc. * (a)		2,263		50,261
Team, Inc. *		1,973		75,191
TNS, Inc. *		2,574		58,945
Waste Services, Inc. *		3,001		25,028
Wright Express Corp. *		4,030		119,893
				1,058,011
Computers & Business Equipment - 2.95%
3Com Corp. *		42,149		89,356
3D Systems Corp. * (a)		2,053		25,088
Acme Packet, Inc. *		3,017		19,279
Agilysys, Inc.		2,527		32,876
Avocent Corp. *		4,673		109,675
Benchmark Electronics, Inc. *		6,872		113,319
BigBand Networks, Inc. *		3,817		13,398
Blue Coat Systems, Inc. *		3,537		65,788
CACI International, Inc., Class A *		3,092		156,610
Cogent, Inc. *		4,326		47,586
Compellent Technologies, Inc. *		1,598		20,694
Cray, Inc. *		3,999		22,434
Data Domain, Inc. * (a)		3,467		79,394
Digi International, Inc. *		2,993		35,347
Echelon Corp. * (a)		3,175		41,307
Electronics for Imaging, Inc. *		5,587		92,688
EMS Technologies, Inc. *		1,712		40,215
Extreme Networks, Inc. *		12,811		44,838
Falconstor Software, Inc. *		4,222		31,749
Foundry Networks, Inc. *		15,075		277,229
Furmanite Corp. *		4,093		48,748
Gerber Scientific, Inc. *		2,767		24,682
Hurco Companies, Inc. *		702		22,766
Hypercom Corp. *		6,087		27,696
Immersion Corp. *		3,326		22,118
Intermec, Inc. *		6,398		128,536

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Computers & Business Equipment (continued)
Internap Network Services Corp. * (a)		5,481	$	16,936
Isilon Systems, Inc. * (a)		3,526		17,842
Ixia *		4,615		40,104
Jack Henry & Associates, Inc.		7,740		155,032
L-1 Identity Solutions, Inc. *		6,795		111,982
Limelight Networks, Inc. *		3,305		12,394
MICROS Systems, Inc. *		8,645		266,439
MTS Systems Corp.		1,843		76,448
NCI, Inc. *		872		23,370
Ness Technologies, Inc. *		4,207		52,419
Netezza Corp. *		4,166		56,241
NETGEAR, Inc. *		3,707		62,463
Netscout Systems, Inc. *		3,158		47,054
Palm, Inc. *		11,462		97,542
Parametric Technology Corp. *		11,901		238,972
Phoenix Technology, Ltd. *		3,094		34,158
Plexus Corp. *		4,400		123,332
Rackable Systems, Inc. *		3,144		32,572
Radiant Systems, Inc. *		3,012		27,469
RadiSys Corp. *		2,638		29,203
Rimage Corp. *		1,339		21,344
SI International, Inc. *		1,463		45,689
Sigma Designs, Inc. * (a)		2,754		47,176
Silicon Storage Technology, Inc. *		9,461		30,937
Smart Modular Technologies (WWH), Inc. *		4,436		13,885
Sonic Solutions *		2,788		12,964
Standard Microsystems Corp. *		2,318		67,732
STEC, Inc. *		3,228		32,700
Stratasys, Inc. *		2,244		37,385
Super Micro Computer, Inc. *		2,684		26,759
Sykes Enterprises, Inc. *		3,436		69,201
Synaptics, Inc. *		2,352		123,104
Trident Microsystems, Inc. *		6,690		21,073
				3,705,337
Construction & Mining Equipment - 0.41%
Astec Industries, Inc. *		1,885		64,844
Carbo Ceramics, Inc.		2,120		127,412
Gulf Islands Fabrication, Inc.		1,283		55,259
Kaman Corp., Class A		2,675		80,651
Layne Christensen Company *		2,003		109,925
Matrix Service Company *		2,737		71,928
				510,019
Construction Materials - 0.70%
Ameron International Corp.		952		111,251
Applied Industrial Technologies, Inc.		4,391		127,822
Clarcor, Inc.		5,228		208,754
Columbus McKinnon Corp. *		2,005		54,716
Comfort Systems USA, Inc.		4,284		65,288
Louisiana-Pacific Corp.		10,709		104,306
Simpson Manufacturing Company, Inc. (a)		3,893		108,225
Standex International Corp.		1,482		37,050
Universal Forest Products, Inc.		1,770		58,145
				875,557

 

The accompanying notes are an integral part of the financial statements.

253

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Containers & Glass - 0.24%
Graphic Packaging Holding Company *		16,055	$	45,757
Mobile Mini, Inc. *		3,604		77,053
Silgan Holdings, Inc.		2,629		137,602
TAL International Group, Inc.		1,473		36,206
				296,618
Correctional Facilities - 0.12%
Cornell Corrections, Inc. *		1,245		33,777
The Geo Group, Inc. *		5,272		116,669
				150,446
Cosmetics & Toiletries - 0.42%
Chattem, Inc. *		1,789		125,445
Elizabeth Arden, Inc. *		2,684		54,914
Helen of Troy, Ltd. *		3,176		76,383
Intermediate Parfums, Inc.		2,300		32,637
Nu Skin Enterprises, Inc., Class A		5,261		88,122
Sally Beauty Holdings, Inc. *		9,959		85,050
Steiner Leisure, Ltd. *		1,698		60,109
				522,660
Crude Petroleum & Natural Gas - 1.93%
Abraxas Petroleum Corp. *		4,677		16,884
Allis-Chalmers Energy, Inc. *		2,894		41,847
American Oil & Gas, Inc. * (a)		4,300		12,341
Arena Resources, Inc. *		3,730		166,619
Bill Barrett Corp. *		3,744		147,439
BMB Munai, Inc. * (a)		4,298		21,490
Cano Petroleum, Inc. *		4,126		13,079
Carrizo Oil & Gas, Inc. *		2,808		139,389
Concho Resources, Inc. *		5,117		167,172
Contango Oil & Gas Company *		1,367		97,221
Endeavour International Corp. *		13,645		23,469
Energy XXI Bermuda, Ltd. * (a)		7,280		34,070
EXCO Resources, Inc. *		7,684		203,472
FX Energy, Inc. * (a)		4,612		38,741
Gasco Energy, Inc. *		10,090		26,537
Georesources, Inc. *		608		10,002
GMX Resources, Inc. *		1,518		102,981
Goodrich Petroleum Corp. *		2,080		105,768
Gran Tierra Energy, Inc. *		9,893		48,476
Gulfport Energy Corp. *		2,728		36,392
Harvest Natural Resources, Inc. *		3,695		40,941
Houston American Energy Corp.		1,769		15,072
Northern Oil And Gas, Inc. * (a)		2,122		15,703
Oilsands Quest, Inc. *		17,138		71,123
Panhandle Oil and Gas, Inc.		854		30,915
Parallel Petroleum Corp. *		4,290		56,800
Penn Virginia Corp.		4,273		282,787
Petroquest Energy, Inc. *		4,467		82,595
Quest Resource Corp. *		2,351		11,308
SulphCo, Inc. * (a)		5,819		16,991
Swift Energy Company *		3,081		143,914
Toreador Resources Corp. * (a)		2,091		18,087
Tri-Valley Corp. *		2,843		19,958
TXCO Resources, Inc. *		3,749		45,400
VAALCO Energy, Inc. *		6,142		48,092
Venoco, Inc. *		2,128		35,878

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas (continued)
Western Refining, Inc.		3,061	$	27,671
				2,416,624
Domestic Oil - 1.14%
Atlas America, Inc.		3,701		138,713
Berry Petroleum Company, Class A		4,382		182,379
Brigham Exploration Company *		4,783		64,905
Clayton Williams Energy, Inc. *		564		45,650
Comstock Resources, Inc. *		4,679		303,854
Delta Petroleum Corp. * (a)		6,449		115,824
Double Eagle Petroleum & Mining Company *		1,210		19,675
Energy Partners, Ltd. *		3,365		40,043
EnergySouth, Inc.		876		53,655
GeoGlobal Resources, Inc. * (a)		4,358		17,345
McMoran Exploration Company * (a)		5,230		143,041
Meridian Resource Corp. *		8,177		22,160
Natural Gas Services Group, Inc. *		1,309		33,955
Stone Energy Corp. *		3,214		153,224
Union Drilling, Inc. *		1,541		21,913
Warren Resources, Inc. *		6,082		68,666
				1,425,002
Drugs & Health Care - 2.02%
Abaxis, Inc. *		2,252		44,792
Abiomed, Inc. * (a)		3,257		58,691
Acadia Pharmaceuticals, Inc. *		3,924		10,006
Accelrys, Inc. *		3,539		18,155
Almost Family, Inc. *		764		34,540
Alpharma, Inc., Class A *		4,583		163,613
Ardea Biosciences, Inc. *		1,440		19,181
Ariad Pharmaceuticals, Inc. * (a)		8,310		25,844
Cell Genesys, Inc. * (a)		9,282		9,096
China Sky One Medical, Inc. *		952		12,614
Columbia Laboratories, Inc. *		5,521		20,152
CPEX Pharmaceuticals, Inc. *		209		3,451
CV Therapeutics, Inc. *		6,444		74,042
Cytori Therapeutics, Inc. *		2,447		15,636
Datascope Corp.		1,371		68,550
Dendreon Corp. * (a)		9,951		58,512
DepoMed, Inc. *		5,751		25,132
Durect Corp. *		8,221		43,571
Dyax Corp. *		6,466		31,037
Gentiva Health Services, Inc. *		2,668		74,251
Hansen Medical, Inc. * (a)		1,820		22,987
I-Flow Corp. * (a)		2,415		23,691
Immunogen, Inc. *		5,142		27,664
Immunomedics, Inc. *		7,607		16,431
Invacare Corp.		3,293		83,741
K-V Pharmaceutical Company, Class A *		3,557		80,210
Landauer, Inc.		1,000		65,260
Luminex Corp. *		3,817		97,295
Mannatech, Inc. (a)		1,963		8,696
Medical Action, Inc. *		1,691		22,271
Mentor Corp.		3,443		84,973
Meridian Bioscience, Inc.		4,156		118,114
MiddleBrook Pharmaceuticals, Inc. * (a)		4,304		8,952

 

The accompanying notes are an integral part of the financial statements.

254

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Drugs & Health Care (continued)
Molina Healthcare, Inc. *		1,486	$	46,764
OraSure Technologies, Inc. *		5,287		26,382
Pain Therapeutics, Inc. * (a)		3,872		36,203
Parexel International Corp. *		6,024		191,383
Quidel Corp. *		2,955		57,770
Res-Care, Inc. *		2,594		49,909
Savient Pharmaceuticals, Inc. *		5,600		127,288
Seattle Genetics, Inc. *		6,429		71,683
Synutra International, Inc. *		397		19,525
Vital Signs, Inc.		841		62,108
Vivus, Inc. *		6,531		55,187
West Pharmaceutical Services, Inc.		3,317		161,903
XenoPort, Inc. *		2,612		127,544
Zymogenetics, Inc. *		4,130		34,444
				2,539,244
Educational Services - 0.18%
American Public Education, Inc. *		1,160		51,852
Capella Education Company *		1,478		73,471
K12, Inc. *		681		16,038
Leapfrog Enterprises, Inc., Class A *		3,701		31,459
Learning Tree International, Inc. *		1,042		15,515
Universal Technical Institute, Inc. *		2,325		39,897
				228,232
Electrical Equipment - 1.61%
A.O. Smith Corp.		2,047		84,275
Aaon, Inc.		2,261		48,295
American Science & Engineering, Inc. (a)		957		63,928
Anaren, Inc. *		1,830		19,435
Anixter International, Inc. *		3,042		224,530
Audiovox Corp., Class A *		2,077		20,271
AZZ, Inc. *		1,276		55,442
Baldor Electric Company		4,765		169,825
Beacon Power Corp. * (a)		9,954		14,035
Capstone Turbine Corp. *		15,235		41,439
China BAK Battery, Inc. *		3,510		14,251
Cohu, Inc.		2,538		42,385
DTS, Inc. *		1,876		60,351
Encore Wire Corp.		1,921		36,633
Excel Technology, Inc. *		1,324		42,289
GrafTech International, Ltd. *		10,686		217,139
Greatbatch, Inc. *		2,390		58,364
Houston Wire & Cable Company (a)		1,942		32,742
Littelfuse, Inc. *		2,260		80,185
Methode Electronics, Inc.		4,016		44,136
Plug Power, Inc. *		9,613		26,051
Powell Industries, Inc. *		809		35,742
Power-One, Inc. * (a)		8,740		19,665
Ultralife Batteries, Inc. *		1,479		17,112
Universal Electronics, Inc. *		1,552		40,693
US Geothermal, Inc. *		7,289		16,473
Varian, Inc. *		3,046		151,417
Vicor Corp.		2,258		22,738
W.H. Brady Company, Class A		5,213		191,369
Watsco, Inc.		2,408		123,265
				2,014,475

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electrical Utilities - 1.90%
Allete, Inc.		2,732	$	115,345
Avista Corp.		5,596		124,791
Black Hills Corp.		3,940		133,211
Central Vermont Public Service Corp.		1,325		32,198
CH Energy Group, Inc.		1,711		68,098
Cleco Corp.		6,236		157,210
El Paso Electric Company *		4,746		101,042
Empire District Electric Company (a)		3,674		77,521
EnerNOC, Inc. * (a)		1,073		16,546
Great Plains Energy, Inc.		3,411		79,988
IDACORP, Inc.		4,653		138,659
ITC Holdings Corp.		5,154		288,676
MGE Energy, Inc.		2,436		82,580
NorthWestern Corp.		4,108		108,040
Otter Tail Corp. (a)		3,188		126,595
Pike Electric Corp. *		1,861		35,080
PNM Resources, Inc.		7,921		93,389
Portland General Electric Company		6,442		165,044
UIL Holding Corp.		2,683		87,466
Unisource Energy Corp.		3,577		114,929
Westar Energy, Inc.		10,558		239,139
				2,385,547
Electronics - 1.96%
Adaptec, Inc. *		13,363		50,646
Advanced Battery Technologies, Inc. * (a)		4,804		18,351
Anadigics, Inc. *		6,461		21,774
Analogic Corp.		1,398		94,645
Axsys Technologies, Inc. *		923		62,699
Bel Fuse, Inc., Class B		1,375		38,280
Belden, Inc.		4,495		165,146
Bookham, Inc *		11,623		19,643
Checkpoint Systems, Inc. *		4,124		87,800
Cogo Group, Inc. *		2,738		15,086
CTS Corp.		3,668		48,564
Cubic Corp.		1,708		47,295
Cynosure, Inc. *		1,050		26,019
Daktronics, Inc. (a)		3,440		60,303
Eagle Test Systems, Inc. *		1,661		23,553
Electro Scientific Industries, Inc. *		2,960		42,298
Enersys *		2,847		80,058
FEI Company *		3,848		104,204
Franklin Electric, Inc. (a)		2,407		104,223
Hutchinson Technology, Inc. *		2,605		37,746
II-VI, Inc. *		2,541		111,575
Imation Corp.		3,106		65,971
Integrated Electrical Services, Inc. *		920		19,697
IPG Photonics Corp. *		2,040		41,555
Kemet Corp. *		9,046		14,655
LaBarge, Inc. *		1,551		22,908
Maxwell Technologies, Inc. *		2,118		26,178
Measurement Specialties, Inc. *		1,660		29,681
Medis Technologies, Ltd. *		3,365		10,532
Mentor Graphics Corp. *		9,445		115,229
Mercury Computer Systems, Inc. *		2,590		23,958
Multi-Fineline Electronix, Inc. *		922		15,729
Newport Corp. *		3,884		36,393

 

The accompanying notes are an integral part of the financial statements.

255

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electronics (continued)
NVE Corp. *		529	$	16,410
OSI Systems, Inc. *		1,711		39,712
Park Electrochemical Corp.		2,113		59,206
Photon Dynamics, Inc. *		2,113		32,160
Rogers Corp. *		1,877		75,099
Sanmina-SCI Corp. *		55,688		130,867
SiRF Technology Holdings, Inc. *		6,389		11,820
Stoneridge, Inc. *		1,601		20,333
Supertex, Inc. *		1,228		36,472
Sycamore Networks, Inc. *		20,209		70,732
Taser International, Inc. * (a)		6,679		43,414
Technitrol, Inc.		4,265		67,430
TTM Technologies, Inc. *		4,423		52,988
Universal Display Corp. * (a)		3,147		44,624
Zoran Corp. *		5,367		47,766
Zygo Corp. *		1,982		20,771
				2,452,198
Energy - 0.92%
Akeena Solar, Inc. * (a)		2,388		10,053
Alon USA Energy, Inc. (a)		1,194		14,555
Ascent Solar Technologies, Inc. * (a)		859		7,868
Aventine Renewable Energy Holdings, Inc. * (a)		2,870		18,368
Clean Energy Fuels Corp. *		2,361		40,704
Comverge, Inc. *		2,355		15,496
Energy Conversion Devices, Inc. *		4,197		315,489
Evergreen Energy, Inc. *		10,018		18,032
Evergreen Solar, Inc. *		10,957		103,325
Fuelcell Energy, Inc. * (a)		7,285		50,558
GeoMet, Inc. *		2,266		15,817
Headwaters, Inc. * (a)		4,378		67,377
New Jersey Resources Corp.		4,410		159,554
Ormat Technologies, Inc. (a)		1,865		93,511
Pacific Ethanol, Inc. * (a)		5,265		10,846
PowerSecure International, Inc. *		2,135		17,251
Quantum Fuel Systems Technologies Worldwide, Inc. *		7,748		13,636
Rosetta Resources, Inc. *		5,300		123,225
VeraSun Energy Corp. * (a)		10,688		61,563
				1,157,228
Financial Services - 2.75%
Advance America Cash Advance Centers, Inc.		5,146		25,318
Advanta Corp., Class B		4,199		32,038
Apollo Investment Corp. (a)		14,672		259,694
Ares Capital Corp.		10,048		121,480
Asset Acceptance Capital Corp. *		1,760		19,078
Bankrate, Inc. * (a)		1,319		42,551
Calamos Asset Management, Inc.		2,217		47,510
Capital Southwest Corp.		353		47,316
Cass Information Systems, Inc.		596		21,706
City Holding Company		1,810		75,676
Cohen & Steers, Inc. (a)		1,799		52,351
Credit Acceptance Corp. *		662		11,082
Delphi Financial Group, Inc.		4,373		117,328
Diamond Hill Investment Group, Inc. *		270		24,554
Dollar Financial Corp. *		2,604		47,601

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Duff & Phelps Corp. *		1,224	$	25,202
Encore Capital Group, Inc. *		1,524		19,355
Evercore Partners, Inc.		1,294		17,159
FBR Capital Markets Corp. *		2,918		14,152
FCStone Group, Inc. * (a)		2,425		50,707
Federal Agricultural Mortgage Corp., Class C		1,094		32,054
Financial Federal Corp.		2,686		67,069
First Financial Northwest, Inc.		3,054		31,059
Friedman, Billings, Ramsey Group, Inc.		15,948		29,185
GAMCO Investors, Inc.		818		38,773
GFI Group, Inc.		7,115		82,534
Gladstone Capital Corp. (a)		2,482		38,868
Gladstone Investment Corp.		3,117		22,661
Harris & Harris Group, Inc. *		3,041		22,260
Heartland Payment Systems, Inc. (a)		2,590		58,430
Hercules Technology Growth Capital, Inc.		3,750		39,038
Interactive Brokers Group, Inc. *		4,203		114,742
Interactive Data Corp.		3,754		112,995
International Assets Holding Corp. *		543		15,421
Kayne Anderson Energy Development Fund *		1,296		29,614
KBW, Inc. *		2,687		79,374
Knight Capital Group, Inc. *		9,748		168,056
Kohlberg Capital Corp.		2,009		22,079
LaBranche & Company, Inc. *		5,556		35,725
MarketAxess Holdings, Inc. *		3,582		35,999
MCG Capital Corp.		8,067		28,073
Medallion Financial Corp.		2,173		22,556
MVC Capital, Inc.		2,717		40,565
National Financial Partners Corp. (a)		4,094		82,576
Nelnet, Inc., Class A		2,032		31,943
NewStar Financial, Inc. *		2,988		26,294
NGP Capital Resources Company (a)		2,587		42,091
Ocwen Financial Corp. *		3,926		27,364
optionsXpress Holdings, Inc.		4,442		102,477
Patriot Capital Funding, Inc.		2,997		22,238
PennantPark Investment Corp.		2,744		21,925
Penson Worldwide, Inc. *		1,861		31,358
PICO Holdings, Inc. *		1,722		82,036
Piper Jaffray Companies, Inc. *		1,969		74,842
Portfolio Recovery Associates, Inc. * (a)		1,613		68,617
Prospect Capital Corp.		2,912		40,768
Sanders Morris Harris Group, Inc.		2,764		29,022
Stifel Financial Corp. *		2,529		103,360
SWS Group, Inc.		2,571		51,883
The First Marblehead Corp. (a)		7,275		29,973
Thinkorswim Group, Inc. *		5,452		54,684
Thomas Weisel Partners Group, Inc. *		2,597		15,894
U.S. Global Investors, Inc.		1,449		20,503
UMB Financial Corp.		3,283		170,815
United Community Financial Corp.		3,500		12,635
World Acceptance Corp. *		1,720		67,114
				3,449,400
Food & Beverages - 1.16%
B&G Foods, Inc.		2,380		19,183
Calavo Growers, Inc.		1,359		16,512
Cal-Maine Foods, Inc. (a)		1,340		52,917

 

The accompanying notes are an integral part of the financial statements.

256

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Food & Beverages (continued)
Chiquita Brands International, Inc. * (a)		4,459	$	65,458
Coca-Cola Bottling Company Consolidated		534		21,670
Diamond Foods, Inc.		1,762		44,350
Farmer Brothers Company		615		16,027
Flowers Foods, Inc.		8,229		217,575
Green Mountain Coffee Roasters, Inc. * (a)		1,858		67,798
Hain Celestial Group, Inc. *		4,235		110,068
Imperial Sugar Company (a)		1,413		19,824
J & J Snack Foods Corp.		1,551		52,253
Lance, Inc.		2,900		59,421
M & F Worldwide Corp. *		1,373		60,439
Nash Finch Company		1,360		55,379
Pilgrim’s Pride Corp.		4,665		59,899
Ralcorp Holdings, Inc. *		2,663		163,508
Sanderson Farms, Inc. (a)		2,108		72,325
Seaboard Corp.		35		45,395
Smart Balance, Inc. *		6,833		43,731
Tootsie Roll Industries, Inc. (a)		2,591		73,792
TreeHouse Foods, Inc. *		3,253		90,303
Zhongpin, Inc. *		2,066		25,804
				1,453,631
Forest Products - 0.06%
Deltic Timber Corp.		1,145		70,154
Funeral Services - 0.06%
Stewart Enterprises, Inc., Class A		8,472		79,298
Furniture & Fixtures - 0.21%
American Woodmark Corp. (a)		1,233		29,296
Ethan Allen Interiors, Inc. (a)		2,498		67,796
Furniture Brands International, Inc.		4,247		38,011
Hooker Furniture Corp.		1,204		20,275
Kimball International, Inc., Class B		3,770		39,698
La-Z-Boy, Inc. (a)		5,517		41,764
Sealy Corp.		4,882		32,660
				269,500
Gas & Pipeline Utilities - 1.04%
American States Water Company		1,876		74,121
Crosstex Energy, Inc. (a)		4,206		136,990
Nicor, Inc.		4,533		208,019
Northwest Natural Gas Company		2,758		134,397
Piedmont Natural Gas, Inc. (a)		7,588		218,914
RAM Energy Resources, Inc. *		4,393		20,076
South Jersey Industries, Inc.		3,164		112,860
Southwest Gas Corp.		4,523		137,273
The Laclede Group, Inc.		2,283		102,575
WGL Holdings, Inc.		5,006		161,193
				1,306,418
Healthcare Products - 2.70%
Accuray, Inc. *		3,885		32,051
Align Technology, Inc. *		6,476		84,447
American Medical Systems Holdings, Inc. *		7,579		134,906
AngioDynamics, Inc. *		2,577		42,340
ArthroCare Corp. *		2,749		70,484
Bruker BioSciences Corp. *		5,238		80,875
Cantel Medical Corp. *		1,480		14,193

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products (continued)
CardioNet, Inc. *		506	$	15,433
Clinical Data, Inc. *		1,747		28,878
Computer Programs & Systems, Inc.		1,241		33,668
Conceptus, Inc. *		3,197		54,029
CONMED Corp. *		2,974		95,049
Cryolife, Inc. *		3,022		47,687
Cyberonics, Inc. *		2,535		54,376
Cypress Biosciences, Inc. *		4,008		27,495
Haemonetics Corp. *		2,630		164,954
Hanger Orthopedic Group, Inc. *		2,484		42,054
ICU Medical, Inc. *		1,147		34,834
Insulet Corp. *		1,987		28,494
Kensey Nash Corp. *		830		29,888
Mannkind Corp. * (a)		5,992		19,474
Masimo Corp. *		4,772		190,737
Merit Medical Systems, Inc. *		2,951		57,131
Micrus Endovascular Corp. *		1,854		23,360
Natus Medical, Inc. *		2,900		71,340
NutriSystem, Inc.		3,169		62,968
Nuvasive, Inc. *		3,692		175,961
Orthofix International NV *		1,792		43,438
Owens & Minor, Inc.		4,193		193,381
PSS World Medical, Inc. *		6,414		117,184
RTI Biologics, Inc. *		5,724		53,691
Sirona Dental Systems, Inc. *		1,758		48,328
Somanetics Corp. *		1,421		35,241
SonoSite, Inc. *		1,783		60,265
Spectranetics Corp. *		3,419		27,489
Stereotaxis, Inc. * (a)		3,168		21,764
STERIS Corp.		5,990		220,252
SurModics, Inc. * (a)		1,608		62,664
Symmetry Medical, Inc. *		3,715		63,935
Synovis Life Technologies, Inc. *		1,419		31,161
The Medicines Company *		5,403		131,617
Thoratec Corp. *		5,687		151,502
TomoTherapy, Inc. *		4,571		28,295
Trans1, Inc. *		1,413		11,601
Ulta Salon, Cosmetics & Fragrance, Inc. *		2,178		23,697
USANA Health Sciences, Inc. *		761		28,812
VNUS Medical Technologies, Inc. *		1,487		32,967
Volcano Corp. *		4,946		90,858
Wright Medical Group, Inc. *		3,866		119,034
Zoll Medical Corp. *		2,162		75,173
				3,389,455
Healthcare Services - 1.86%
Air Methods Corp. *		1,127		32,537
Alliance Imaging, Inc. *		2,920		33,901
Amedisys, Inc. *		2,727		145,131
AMERIGROUP Corp. *		5,447		140,968
AMN Healthcare Services, Inc. *		3,521		66,899
Apria Healthcare Group, Inc. *		4,499		88,990
Assisted Living Concepts, Inc. *		5,830		41,276
athenahealth, Inc. *		2,175		70,144
Capital Senior Living Corp. *		2,678		21,076
CorVel Corp. *		906		26,374
Cross Country Healthcare, Inc. *		3,229		50,598

 

The accompanying notes are an integral part of the financial statements.

257

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Services (continued)
Emergency Medical Services Corp., Class A * (a)		1,010	$	33,613
Emeritus Corp. *		2,146		47,684
Enzo Biochem, Inc. *		3,440		44,548
Five Star Quality Care, Inc. *		3,739		15,031
Healthextras, Inc. *		3,415		111,329
Healthsouth Corp. *		8,219		147,860
Healthspring, Inc. *		5,070		100,690
Healthways, Inc. *		3,637		69,285
Kindred Healthcare, Inc. *		2,868		88,707
LHC Group, Inc. *		1,567		45,647
Magellan Health Services, Inc. *		4,153		180,905
National Healthcare Corp.		901		44,798
Nighthawk Radiology Holdings, Inc. * (a)		2,782		23,730
Obagi Medical Products, Inc. *		2,051		19,792
Odyssey Healthcare, Inc. *		3,529		34,372
Palomar Medical Technologies, Inc. *		2,066		29,895
Phase Forward, Inc. *		4,512		87,172
Psychiatric Solutions, Inc. *		5,725		216,119
RadNet, Inc. *		2,560		15,923
Skilled Healthcare Group, Inc. *		2,000		31,920
Sun Healthcare Group, Inc. *		4,491		77,200
The Advisory Board Company *		1,837		56,782
Town Sports International Holdings, Inc. *		2,126		22,280
Triple-S Management Corp. *		1,737		30,154
US Physical Therapy, Inc. *		1,512		29,953
Virtual Radiologic Corp *		901		11,596
				2,334,879
Homebuilders - 0.29%
Beazer Homes USA, Inc. (a)		4,284		29,816
Cavco Industries, Inc. *		786		27,518
Champion Enterprises, Inc. *		8,145		39,829
Hovnanian Enterprises, Inc., Class A * (a)		5,002		35,714
M/I Homes, Inc.		1,631		29,211
Meritage Homes Corp. * (a)		3,266		76,490
Ryland Group, Inc.		4,415		102,340
Standard Pacific Corp. * (a)		8,009		25,629
				366,547
Hotels & Restaurants - 1.22%
AFC Enterprises, Inc. *		2,949		26,747
Ameristar Casinos, Inc.		2,750		45,485
BJ’s Restaurants, Inc. *		2,054		23,909
Bob Evans Farms, Inc.		3,260		91,508
Buffalo Wild Wings, Inc. * (a)		1,868		67,397
California Pizza Kitchen, Inc. *		2,525		36,310
CBRL Group, Inc.		2,340		60,466
CEC Entertainment, Inc. *		2,269		77,736
CKE Restaurants, Inc.		5,537		70,763
Denny’s Corp. *		10,401		29,123
DineEquity, Inc. (a)		1,845		36,642
Domino’s Pizza, Inc. *		4,327		57,982
Jack in the Box, Inc. *		6,240		148,075
Krispy Kreme Doughnuts, Inc. *		6,014		25,439
Landry’s Restaurants, Inc. (a)		1,328		25,577
Lodgian, Inc. *		2,218		18,764
Luby’s Cafeterias, Inc. *		2,919		21,659

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hotels & Restaurants (continued)
Marcus Corp.		2,261	$	38,844
Morgans Hotel Group Company *		3,086		52,771
O’Charley’s, Inc.		2,442		24,444
P.F. Chang’s China Bistro, Inc. * (a)		2,557		66,431
Papa John’s International, Inc. *		2,340		65,333
Peets Coffee & Tea, Inc. *		1,643		43,112
Red Robin Gourmet Burgers, Inc. *		1,761		47,019
Ruby Tuesday, Inc. *		5,573		38,955
Sonic Corp. *		6,376		92,388
Texas Roadhouse, Inc., Class A *		5,584		50,144
The Cheesecake Factory, Inc. *		6,964		107,037
The Steak & Shake Company * (a)		3,581		27,860
Triarc Companies, Inc.		2,252		13,084
				1,531,004
Household Appliances - 0.05%
Libbey, Inc.		1,849		17,196
National Presto Industries, Inc.		534		41,289
				58,485
Household Products - 0.38%
Blyth, Inc.		2,700		42,687
Central Garden & Pet Company, Class A *		6,970		36,941
Tempur-Pedic International, Inc.		7,720		87,313
Tupperware Brands Corp.		6,398		228,537
TurboChef Technologies, Inc. *		2,754		16,799
WD-40 Company		1,865		65,070
				477,347
Industrial Machinery - 2.15%
Actuant Corp., Class A		5,948		187,659
Alamo Group, Inc.		832		17,414
Albany International Corp., Class A		3,140		96,304
Altra Holdings, Inc. *		2,901		52,189
Badger Meter, Inc. (a)		1,530		70,441
Briggs & Stratton Corp.		5,165		77,475
Cascade Corp.		944		48,975
Chart Industries, Inc. *		2,951		136,277
Circor International, Inc.		1,750		105,455
Cognex Corp.		4,358		88,162
Dionex Corp. *		1,909		124,448
DXP Enterprises, Inc. *		416		24,565
EnPro Industries, Inc. *		2,101		88,557
Flow International Corp. *		4,114		27,934
Gehl Company *		1,282		19,320
Gorman-Rupp Company		1,890		76,035
H&E Equipment Services, Inc. *		1,737		24,509
Intevac, Inc. *		2,390		24,330
Kadant, Inc. *		1,555		36,465
Key Technology, Inc. *		742		21,191
Lindsay Corp.		1,234		101,077
Lufkin Industries, Inc.		1,540		142,897
Middleby Corp. *		1,779		94,927
Mitcham Industries, Inc. *		1,159		17,709
NACCO Industries, Inc., Class A		622		73,110
NATCO Group, Inc. *		2,070		104,928
OYO Geospace Corp. *		447		21,930
Presstek, Inc. *		3,415		18,339

 

The accompanying notes are an integral part of the financial statements.

258

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery (continued)
Raser Technologies, Inc. * (a)		4,857	$	41,722
Regal-Beloit Corp.		3,301		154,982
Robbins & Myers, Inc.		2,976		133,474
Rofin-Sinar Technologies, Inc. *		3,187		128,819
Sauer-Danfoss, Inc.		1,190		38,996
Tecumseh Products Company, Class A *		1,738		45,866
Tennant Company		1,752		54,575
Tredegar Industries, Inc.		2,483		49,163
Twin Disc, Inc.		1,914		35,160
Watts Water Technologies, Inc., Class A (a)		3,017		85,773
				2,691,152
Industrials - 0.24%
Clean Harbors, Inc. *		2,050		166,337
EnergySolutions, Inc.		3,439		63,518
Graham Corp.		653		60,990
Synthesis Energy Systems, Inc. *		2,282		15,358
				306,203
Insurance - 3.41%
Ambac Financial Group, Inc.		30,009		214,864
American Equity Investment Life Holding Company		5,900		54,221
American Physicians Capital, Inc.		964		40,777
American Safety Insurance Holdings, Ltd. *		1,495		21,603
Amerisafe, Inc. *		2,217		40,992
Amtrust Financial Services, Inc.		1,758		24,717
Argo Group International Holdings, Ltd. *		2,640		99,238
Aspen Insurance Holdings, Ltd.		8,717		236,231
Assured Guaranty, Ltd.		5,749		93,479
Baldwin & Lyons, Inc., Class B		1,310		27,929
Castlepoint Holdings, Ltd.		3,851		43,593
Ceva, Inc. *		2,458		23,351
Citizens, Inc., Class A * (a)		4,450		31,684
CNA Surety Corp. *		1,867		30,003
Darwin Professional Underwriters, Inc. *		925		29,258
Donegal Group, Inc.		1,618		29,092
eHealth, Inc. *		2,750		40,810
Employers Holdings, Inc.		5,292		91,975
Enstar Group, Ltd. *		551		64,638
FBL Financial Group, Inc., Class A		1,501		34,448
First Mercury Financial Corp. *		1,678		24,717
Flagstone Reinsurance Holdings, Ltd.		3,210		39,483
FPIC Insurance Group, Inc. *		997		51,505
Greenlight Capital Re, Ltd. * (a)		3,263		66,891
Harleysville Group, Inc.		1,488		53,970
Hilb, Rogal and Hamilton Company		3,808		173,454
Horace Mann Educators Corp.		4,384		65,322
Infinity Property & Casualty Corp.		1,752		81,468
IPC Holdings, Ltd.		5,519		174,787
Kansas City Life Insurance Company		613		29,166
LandAmerica Financial Group, Inc.		1,670		28,624
Life Partners Holdings, Inc.		837		24,239
Max Re Capital, Ltd.		5,862		152,412
Meadowbrook Insurance Group, Inc.		9,113		61,057
Montpelier Re Holdings, Ltd.		9,607		155,537
National Western Life Insurance Company, Class A		82		19,634

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Insurance (continued)
Navigators Group, Inc. *		1,440	$	75,456
Odyssey Re Holdings Corp.		2,509		94,740
Phoenix Companies, Inc.		12,010		143,039
Platinum Underwriters Holdings, Ltd.		4,969		179,629
PMA Capital Corp., Class A *		3,765		35,730
PMI Group, Inc.		9,070		32,561
Presidential Life Corp.		2,617		47,106
ProAssurance Corp. *		3,360		181,104
Quanta Capital Holdings, Ltd. *		8,608		23,414
Radian Group, Inc. (a)		9,164		35,098
RLI Corp.		1,988		111,149
Safety Insurance Group, Inc.		1,764		75,852
SeaBright Insurance Holdings, Inc. *		2,527		30,678
Selective Insurance Group, Inc.		5,661		136,657
State Auto Financial Corp.		1,665		51,399
Stewart Information Services Corp.		1,904		35,624
Tower Group, Inc.		2,207		46,237
United America Indemnity, Ltd. *		2,228		33,910
United Fire & Casualty Company		2,464		73,279
Universal American Financial Corp. *		4,179		55,037
Validus Holdings, Ltd.		6,594		157,333
Zenith National Insurance Corp.		3,840		146,650
				4,276,851
International Oil - 0.29%
ATP Oil & Gas Corp. * (a)		2,880		74,016
BPZ Energy, Inc. *		6,204		122,219
Callon Petroleum Company *		2,175		43,217
Cheniere Energy, Inc. * (a)		5,360		20,153
Parker Drilling Company *		11,647		107,968
				367,573
Internet Content - 0.30%
CMGI, Inc. *		5,233		61,697
Dice Holdings, Inc. *		1,655		14,713
HSW International, Inc. *		1,689		4,983
InfoSpace, Inc. *		3,719		43,512
Internet Capital Group, Inc. *		4,218		35,642
Liquidity Services, Inc. *		1,663		18,226
LoopNet, Inc. *		3,097		33,014
Move, Inc. *		13,684		36,947
RightNow Technologies, Inc. *		2,986		44,760
TechTarget, Inc. *		1,504		10,829
TeleCommunication Systems, Inc. *		3,989		33,508
The Knot, Inc. *		3,158		28,769
TheStreet.com, Inc.		1,932		13,717
				380,317
Internet Retail - 0.37%
1-800-Flowers.com, Inc. *		3,178		19,513
Blue Nile, Inc. * (a)		1,388		57,782
Drugstore.com, Inc. *		10,128		24,105
Internet Brands, Inc. *		2,432		17,000
Mercadolibre, Inc. *		2,638		81,435
Netflix, Inc. * (a)		4,173		128,695
Orbitz Worldwide, Inc. *		3,858		23,804
Overstock.com, Inc. * (a)		1,618		34,205
PetMed Express, Inc. *		2,605		37,095

 

The accompanying notes are an integral part of the financial statements.

259

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Internet Retail (continued)
Shutterfly, Inc. * (a)		2,098	$	19,511
Stamps.com, Inc. *		1,617		22,201
				465,346
Internet Service Provider - 0.27%
Cogent Communications Group, Inc. *		4,961		45,691
Earthlink, Inc. *		11,380		106,062
Entrust, Inc. *		7,249		17,035
Online Resources Corp. *		3,201		27,881
Terremark Worldwide, Inc. *		5,722		41,370
United Online, Inc.		8,014		84,387
Website Pros, Inc. *		3,062		18,494
				340,920
Internet Software - 0.95%
Art Technology Group, Inc. *		13,557		55,584
Chordiant Software, Inc. *		3,349		19,926
Cybersource Corp. *		7,154		122,906
DealerTrack Holdings, Inc. *		4,459		82,179
Digital River, Inc. *		3,828		167,475
eResearch Technology, Inc. *		4,494		60,624
Interwoven, Inc. *		4,759		70,052
Keynote Systems, Inc. *		1,769		24,801
NIC, Inc. *		4,225		29,237
PC-Tel, Inc. *		2,615		26,438
RealNetworks, Inc. *		9,401		62,329
S1 Corp. *		5,317		40,569
Sapient Corp. *		9,230		85,562
SupportSoft, Inc. *		6,008		20,968
Switch & Data Facilities Company, Inc. *		2,200		31,856
TIBCO Software, Inc. *		19,272		157,838
VASCO Data Security International, Inc. *		2,837		39,207
Vignette Corp. *		2,783		37,932
Vocus, Inc. *		1,707		60,855
				1,196,338
Leisure Time - 1.31%
Bally Technologies, Inc. *		5,672		194,152
Blockbuster, Inc., Class A *		18,632		44,717
Brunswick Corp.		9,020		124,386
Callaway Golf Company		6,914		93,892
Churchill Downs, Inc.		1,082		48,062
Cinemark Holdings, Inc. (a)		3,092		45,421
Gaylord Entertainment Company * (a)		4,283		148,406
Great Wolf Resorts, Inc. *		3,630		18,985
Life Time Fitness, Inc. * (a)		3,611		127,649
Monarch Casino & Resort, Inc. *		1,596		21,370
National Cinemedia, Inc.		4,641		51,933
Parkervision, Inc. * (a)		2,532		27,346
Pinnacle Entertainment, Inc. *		6,272		69,556
Polaris Industries, Inc. (a)		3,411		153,802
RC2 Corp. *		1,934		48,679
Rick’s Cabaret International, Inc. *		741		10,352
Riviera Holdings Corp. *		1,314		15,190
Shuffle Master, Inc. *		3,992		20,040
Six Flags, Inc. * (a)		9,565		10,426
Speedway Motorsports, Inc.		1,513		33,483
Steinway Musical Instruments, Inc. *		882		25,499

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Leisure Time (continued)
The Nautilus Group, Inc. * (a)		2,954	$	15,715
Vail Resorts, Inc. * (a)		3,253		143,099
WMS Industries, Inc. *		4,546		152,746
				1,644,906
Life Sciences - 0.45%
American Ecology Corp.		1,753		56,902
Celera Corp. *		8,253		115,542
Dawson Geophysical Company *		815		51,125
Halozyme Therapeutics, Inc. *		6,531		50,942
Incyte Corp. *		7,075		72,377
Nanosphere, Inc. *		1,661		15,863
Omrix Biopharmaceuticals, Inc. *		1,505		34,615
Repligen Corp. *		3,633		19,509
Sequenom, Inc. *		4,812		109,377
Symyx Technologies, Inc. *		3,905		43,150
				569,402
Liquor - 0.03%
Boston Beer Company, Inc. *		886		39,843
Manufacturing - 1.74%
Acuity Brands, Inc.		4,308		187,441
American Railcar Industries, Inc. (a)		1,010		16,372
ATC Technology Corp. *		2,251		54,519
Barnes Group, Inc.		4,948		119,346
Blount International, Inc. *		4,125		52,057
Ceradyne, Inc. *		2,735		123,239
China Fire & Security Group, Inc. * (a)		1,523		16,723
Coherent, Inc. *		2,499		89,639
Colfax Corp. *		2,285		56,188
ESCO Technologies, Inc. *		2,675		127,357
Force Protection, Inc. * (a)		7,305		29,074
Freightcar America, Inc.		1,240		45,843
GenTek, Inc. *		1,037		30,052
Hexcel Corp. *		9,945		206,657
Insteel Industries, Inc.		1,904		32,558
iRobot Corp. * (a)		2,040		28,540
Kaydon Corp.		2,853		158,998
Koppers Holdings, Inc.		2,173		99,545
K-Tron International, Inc. *		296		44,042
Lancaster Colony Corp.		2,149		74,742
Lydall, Inc. *		1,931		22,573
Mine Safety Appliances Company		3,187		115,784
Nordson Corp.		3,502		187,812
Park-Ohio Holdings Corp. *		1,081		21,090
Polypore International, Inc. *		1,700		46,631
Raven Industries, Inc.		1,688		76,348
Reddy Ice Holdings, Inc.		1,987		16,731
Smith & Wesson Holding Corp. * (a)		4,075		23,105
Spartan Motors, Inc.		5,242		24,795
Thermadyne Holdings Corp. *		1,585		35,663
TriMas Corp. *		1,803		13,937
				2,177,401
Medical-Hospitals - 0.70%
AmSurg Corp. *		3,254		88,216
Centene Corp. *		4,469		100,910
Cepheid, Inc. *		5,912		109,963

 

The accompanying notes are an integral part of the financial statements.

260

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Medical-Hospitals (continued)
DexCom, Inc. *		2,994	$	20,599
EV3, Inc. * (a)		7,381		90,122
Exactech, Inc. *		851		22,015
Genoptix, Inc. *		882		30,870
IRIS International, Inc. *		2,016		37,336
MedCath Corp. *		1,698		36,117
Microvision, Inc. *		6,517		16,944
MWI Veterinary Supply, Inc. *		1,139		44,865
Neogen Corp. *		2,378		61,995
Novavax, Inc. *		6,800		18,768
NxStage Medical, Inc. *		2,557		9,717
Orthovita, Inc. *		9,017		27,502
RehabCare Group, Inc. *		1,957		35,891
Sunrise Senior Living, Inc. *		4,615		93,823
Vital Images, Inc. * (a)		2,002		31,431
				877,084
Metal & Metal Products - 1.06%
A. M. Castle & Company		1,724		34,618
Ampco-Pittsburgh Corp.		886		38,488
Brush Engineered Materials, Inc. *		2,106		61,706
Dynamic Materials Corp.		1,306		40,186
Fushi Copperweld, Inc. *		1,531		17,270
Gibraltar Industries, Inc.		2,835		60,981
Haynes International, Inc. *		1,238		72,373
Horsehead Holding Corp. *		3,661		30,459
Kaiser Aluminum Corp.		1,612		87,145
L.B. Foster Company *		1,174		45,269
Ladish Company, Inc. *		1,629		43,429
Matthews International Corp., Class A		3,242		162,943
Metalico, Inc. * (a)		2,529		32,573
Mueller Industries, Inc.		3,840		107,712
Mueller Water Products, Inc.		12,172		132,310
NN, Inc.		2,005		32,922
RBC Bearings, Inc. *		2,289		91,423
RTI International Metals, Inc. *		2,373		80,231
Sun Hydraulics, Inc.		1,828		60,488
Universal Stainless & Alloy Products, Inc. *		744		26,896
USEC, Inc. * (a)		11,493		66,200
				1,325,622
Mining - 0.60%
AMCOL International Corp.		2,691		98,114
Apex Silver Mines, Ltd. *		6,927		20,365
Coeur d’Alene Mines Corp. * (a)		57,998		103,816
Compass Minerals International, Inc.		3,347		231,847
General Moly, Inc. * (a)		6,717		45,810
Hecla Mining Company * (a)		13,607		95,521
Royal Gold, Inc. (a)		3,343		116,036
Stillwater Mining Company *		4,103		30,567
Uranium Resources, Inc. * (a)		4,719		10,854
				752,930
Mobile Homes - 0.06%
Fleetwood Enterprises, Inc. * (a)		7,291		15,603
Skyline Corp.		864		19,760
Winnebago Industries, Inc.		3,118		35,389
				70,752

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Office Furnishings & Supplies - 0.55%
Acco Brands Corp. *		5,720	$	48,563
Herman Miller, Inc.		5,773		162,452
HNI Corp. (a)		4,576		105,889
IKON Office Solutions, Inc.		8,369		144,867
Knoll, Inc.		5,033		82,893
The Standard Register Company		1,646		18,633
United Stationers, Inc. *		2,436		120,777
				684,074
Paper - 0.47%
AbitibiBowater, Inc. * (a)		2,975		19,576
Boise, Inc. *		3,729		11,038
Buckeye Technologies, Inc. *		4,206		38,737
Mercer International, Inc. *		3,566		21,788
Neenah Paper, Inc.		1,669		32,412
P.H. Glatfelter Company		4,798		70,387
Potlatch Corp.		4,000		186,760
Rock-Tenn Company, Class A		3,928		144,079
Wausau-Mosinee Paper Corp.		4,986		42,929
Xerium Technologies, Inc.		2,205		17,001
				584,707
Petroleum Services - 1.64%
Approach Resources, Inc. *		966		13,524
Basic Energy Services, Inc. *		4,287		125,309
Bolt Technology Corp. *		1,467		28,240
Bronco Drilling Company, Inc. *		2,833		44,903
Complete Production Services, Inc. *		4,952		146,332
CVR Energy, Inc. *		2,386		33,261
Dril-Quip, Inc. *		3,169		174,327
Flotek Industries, Inc. * (a)		2,428		40,912
Grey Wolf, Inc. *		18,376		160,055
GulfMark Offshore, Inc. *		2,120		106,212
Hornbeck Offshore Services, Inc. *		2,370		104,422
ION Geophysical Corp. *		8,759		141,195
Newpark Resources, Inc. *		9,398		80,635
Petroleum Development Corp. *		1,550		94,224
Pioneer Drilling Company *		5,140		86,146
Rentech, Inc. *		17,784		41,970
Rex Energy Corp. *		1,754		35,203
RPC, Inc.		2,900		52,867
Smith International, Inc.		1,965		136,961
Superior Well Services, Inc. *		1,750		57,680
T-3 Energy Services, Inc. *		1,303		72,746
Trico Marine Services, Inc. * (a)		1,315		31,231
Willbros Group, Inc. *		4,022		166,551
World Fuel Services Corp.		2,975		85,710
				2,060,616
Pharmaceuticals - 2.86%
Adolor Corp. *		5,181		16,890
Affymax, Inc. * (a)		1,260		23,612
Akorn, Inc. * (a)		6,372		30,904
Alexion Pharmaceuticals, Inc. *		7,932		357,575
Alexza Pharmaceuticals, Inc. *		3,304		17,544
Alkermes, Inc. *		9,898		132,336
Allos Therapeutics, Inc. *		5,692		53,106
American Oriental Bioengineering, Inc. *		6,373		52,768

 

The accompanying notes are an integral part of the financial statements.

261

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Pharmaceuticals (continued)
Array BioPharma, Inc. *		5,292	$	43,236
Auxilium Pharmaceuticals, Inc. *		4,299		168,994
Biodel, Inc. *		1,224		21,873
BioForm Medical, Inc. *		2,804		11,160
BMP Sunstone Corp. * (a)		2,842		15,802
Cadence Pharmaceuticals, Inc. *		2,511		24,884
Caraco Pharmaceutical Labs *		1,181		19,014
Cubist Pharmaceuticals, Inc. *		5,832		128,479
Emergent Biosolutions, Inc. *		1,441		19,972
Enzon Pharmaceuticals, Inc. * (a)		4,961		44,897
Idenix Pharmaceuticals, Inc. *		2,912		23,675
Indevus Pharmaceuticals, Inc. *		9,612		21,146
Inspire Pharmaceuticals, Inc. *		4,935		22,207
Isis Pharmaceuticals, Inc. *		9,375		165,750
Javelin Pharmaceuticals, Inc. *		6,012		16,773
Ligand Pharmaceuticals, Inc., Class B *		9,077		30,680
Medicis Pharmaceutical Corp., Class A		5,833		120,801
Noven Pharmaceuticals, Inc. *		2,721		33,604
NPS Pharmaceuticals, Inc. *		5,969		48,349
Onyx Pharmaceuticals, Inc. *		5,734		234,349
Optimer Pharmaceuticals, Inc. *		3,048		24,262
OSI Pharmaceuticals, Inc. *		5,903		298,102
Par Pharmaceutical Companies, Inc. *		3,590		51,122
PDL BioPharma, Inc. *		12,669		152,915
Pharmasset, Inc. *		1,716		36,276
PharMerica Corp. *		3,175		75,152
POZEN, Inc. * (a)		2,756		31,749
Prestige Brands Holdings, Inc. *		3,603		34,229
Questcor Pharmaceuticals, Inc. *		5,708		31,166
Regeneron Pharmaceuticals, Inc. *		6,451		140,116
Rigel Pharmaceuticals, Inc. *		3,795		89,790
Salix Pharmaceuticals, Ltd. *		5,168		35,142
Sciele Pharma, Inc. *		3,628		69,912
Sucampo Pharmaceuticals, Inc. *		1,100		10,450
Synta Pharmaceuticals Corp. * (a)		2,310		20,467
Theravance, Inc. *		5,490		74,829
United Therapeutics Corp. *		2,294		243,462
Valeant Pharmaceuticals International * (a)		7,264		133,004
ViroPharma, Inc. *		7,236		106,007
XOMA, Ltd. *		14,876		30,793
				3,589,325
Pollution Control - 0.03%
Fuel Tech, Inc. * (a)		1,885		34,571
Publishing - 0.50%
American Greetings Corp., Class A		5,048		81,172
Consolidated Graphics, Inc. *		1,051		40,852
Courier Corp.		1,329		28,441
Dolan Media Company *	��	2,431		37,073
Idearc, Inc.		15,290		25,228
Lee Enterprises, Inc. (a)		5,036		18,885
Martha Stewart Living Omnimedia, Inc., Class A * (a)		2,817		22,874
McClatchy Company, Class A (a)		6,200		22,506
Media General, Inc., Class A (a)		2,506		30,824
Multi-Color Corp.		1,747		40,775
Playboy Enterprises, Inc., Class B *		2,962		12,618

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Publishing (continued)
Scholastic Corp.		2,507	$	65,433
Valassis Communications, Inc. *		5,009		47,135
VistaPrint, Ltd. * (a)		4,577		152,139
				625,955
Railroads & Equipment - 0.37%
Genesee & Wyoming, Inc., Class A *		3,142		135,137
Greenbrier Company, Inc. (a)		1,732		34,727
Wabtec Corp.		4,930		291,215
				461,079
Real Estate - 5.15%
Acadia Realty Trust, REIT		3,380		80,275
Agree Realty Corp., REIT		1,177		31,697
Alexander’s, Inc., REIT *		215		82,581
American Campus Communities, Inc., REIT		4,166		126,313
Anthracite Capital, Inc., REIT		5,727		32,243
Anworth Mortgage Asset Corp., REIT		8,491		55,531
Ashford Hospitality Trust, Inc., REIT		12,604		57,222
Associated Estates Realty Corp., REIT		2,090		30,723
Avatar Holdings, Inc. * (a)		705		22,412
BioMed Realty Trust, Inc., REIT		7,380		197,636
Capital Lease Funding, Inc., REIT		5,300		43,725
Capital Trust, Inc., Class A, REIT (a)		1,725		20,803
Capstead Mortage Corp., REIT		5,464		64,147
Cedar Shopping Centers, Inc., REIT		4,209		55,138
Chimera Investment Corp.		3,501		22,231
Colonial Properties Trust, REIT		4,846		91,638
Consolidated Tomoka Land Company		273		11,272
Corporate Office Properties Trust, REIT		4,000		156,400
Cousins Properties, Inc., REIT (a)		4,841		120,977
DCT Industrial Trust, Inc., REIT		17,831		133,019
DiamondRock Hospitality Company, REIT		9,765		89,936
DuPont Fabros Technology, Inc., REIT		1,250		21,950
EastGroup Properties, Inc., REIT		2,612		116,130
Education Realty Trust, Inc., REIT		3,409		37,363
Entertainment Properties Trust, REIT		3,117		169,160
Equity Lifestyle Properties, Inc., REIT		2,168		107,706
Equity One, Inc., REIT		3,279		68,826
Extra Space Storage, Inc., REIT		8,247		129,890
FelCor Lodging Trust, Inc., REIT		6,602		52,882
First Industrial Realty Trust, Inc., REIT (a)		4,485		105,801
First Potomac Realty Trust, REIT		2,761		45,860
Forestar Real Estate Group, Inc. *		3,768		75,963
Franklin Street Properties Corp., REIT		6,177		78,633
Getty Realty Corp., REIT		1,906		39,893
Glimcher Realty Trust, REIT		4,153		41,904
Gramercy Capital Corp., REIT		4,215		28,198
Grubb & Ellis Company		3,543		12,294
Hatteras Financial Corp., REIT		1,254		31,036
Healthcare Realty Trust, Inc., REIT		5,228		149,887
Hersha Hospitality Trust, REIT		4,796		34,723
Highwoods Properties, Inc., REIT		5,885		213,449
Hilltop Holdings, Inc. *		5,066		52,737
Home Properties, Inc., REIT		3,230		170,382
Inland Real Estate Corp., REIT		6,016		90,481
Investors Real Estate Trust, SBI, REIT		6,475		66,887

 

The accompanying notes are an integral part of the financial statements.

262

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Real Estate (continued)
Jer Investors Trust, Inc., REIT (a)		2,848	$	16,376
Kite Realty Group Trust, REIT		2,407		29,341
LaSalle Hotel Properties, REIT		4,131		107,695
Lexington Corporate Property Trust, REIT		5,196		77,472
LTC Properties, Inc., REIT		2,416		64,918
Maguire Properties, Inc., REIT		4,103		46,446
Medical Properties Trust, Inc., REIT		6,758		74,608
MFA Mortgage Investments, Inc., REIT		15,561		105,815
Mid-America Apartment Communities, Inc., REIT		2,712		136,034
Mission West Properties, Inc., REIT		1,777		17,308
National Health Investments, Inc., REIT		2,381		77,859
National Retail Properties, Inc., REIT		7,397		167,838
Newcastle Investment Corp., REIT (a)		5,718		39,683
NorthStar Realty Finance Corp., REIT (a)		5,756		41,155
Omega Healthcare Investors, REIT		7,203		128,502
Parkway Properties, Inc., REIT		1,662		59,782
Pennsylvania Real Estate Investment Trust, REIT		3,689		73,227
Post Properties, Inc., REIT		4,500		141,525
PS Business Parks, Inc., REIT		1,606		86,451
RAIT Financial Trust, REIT (a)		6,600		39,138
Ramco-Gershenson Properties Trust, REIT		1,774		41,015
Realty Income Corp., REIT (a)		10,369		266,276
Redwood Trust, Inc., REIT		3,454		64,763
Resource Capital Corp., REIT (a)		2,480		15,128
Saul Centers, Inc., REIT		1,072		49,012
Senior Housing Properties Trust, REIT		9,688		210,036
Sovran Self Storage, Inc., REIT		2,295		88,358
Strategic Hotel & Resorts, Inc., REIT		7,784		71,768
Sun Communities, Inc., REIT		2,082		40,203
Sunstone Hotel Investors, Inc., REIT		6,061		85,945
Tanger Factory Outlet Centers, Inc., REIT		3,272		131,273
Thomas Properties Group, Inc.		2,901		27,937
Universal Health Realty Income Trust, REIT		1,364		50,045
Urstadt Biddle Properties, Inc., REIT		2,505		42,660
U-Store-It Trust, REIT		5,287		66,088
Washington Real Estate Investment Trust, REIT		5,082		179,649
Winthrop Realty Trust, REIT		6,527		25,912
				6,455,195
Retail Grocery - 0.44%
Ingles Markets, Inc.		1,497		36,991
PriceSmart, Inc.		1,553		33,001
Ruddick Corp.		4,371		139,173
Spartan Stores, Inc.		2,327		52,916
The Great Atlantic & Pacific Tea Company, Inc. *		3,692		60,253
United Natural Foods, Inc. *		4,481		86,125
Village Super Market, Inc.		254		11,412
Weis Markets, Inc.		1,227		46,442
Winn-Dixie Stores, Inc. *		5,634		79,552
				545,865
Retail Trade - 3.12%
99 Cents Only Stores *		4,859		41,593
Aaron Rents, Inc., Class B		4,697		134,146

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade (continued)
Aeropostale, Inc. *		7,095	$	247,332
Big 5 Sporting Goods Corp.		2,651		23,806
Borders Group, Inc.		6,439		45,073
Build A Bear Workshop, Inc. *		1,907		14,150
Cabela’s, Inc. * (a)		4,082		50,005
Cache, Inc. *		1,371		16,054
Casey’s General Stores, Inc.		5,318		154,222
Cash America International, Inc.		3,028		125,329
Casual Male Retail Group, Inc. *		4,384		16,747
Cato Corp., Class A		2,916		51,351
Charlotte Russe Holding, Inc. *		2,176		25,699
Charming Shoppes, Inc. *		11,843		63,952
Chico’s FAS, Inc. *		18,168		104,284
Children’s Place Retail Stores, Inc. *		2,416		101,351
Christopher & Banks Corp.		3,698		35,575
Circuit City Stores, Inc. (a)		17,624		31,723
Citi Trends, Inc. *		1,510		31,136
Coldwater Creek, Inc. *		6,033		43,920
Collective Brands, Inc. *		6,597		95,788
Conn’s, Inc. *		1,076		20,573
CSS Industries, Inc.		908		24,198
Dillard’s, Inc., Class A (a)		5,796		74,015
DSW, Inc., Class A *		1,410		20,487
FGX International Holdings, Ltd. *		1,671		21,740
Finish Line, Inc.		4,470		54,042
First Cash Financial Services, Inc. *		2,249		41,674
Fossil, Inc. *		4,712		140,983
Fred’s, Inc., Class A		4,221		59,178
Gaiam, Inc., Class A * (a)		1,969		25,065
Genesco, Inc. *		2,656		97,236
Haverty Furniture Companies, Inc. (a)		2,199		24,277
Hibbett Sports, Inc. *		2,963		70,816
Hot Topic, Inc. *		4,771		29,628
J. Crew Group, Inc. *		4,365		115,280
Jo-Ann Stores, Inc. *		2,640		65,921
Longs Drug Stores Corp.		3,185		228,205
Lumber Liquidators, Inc. *		1,043		13,465
Marinemax, Inc. *		2,002		15,856
New York & Company, Inc. *		2,424		28,603
Pacific Sunwear of California, Inc. *		7,356		46,564
Pantry, Inc. *		2,483		45,538
Pier 1 Imports, Inc. *		9,279		41,013
Regis Corp.		4,417		121,291
Rent-A-Center, Inc. *		6,902		156,399
Retail Ventures, Inc. *		3,270		15,304
School Specialty, Inc. *		2,090		63,745
Shoe Carnival, Inc. *		1,076		17,560
Sonic Automotive, Inc.		2,663		28,654
Spectrum Brands, Inc. * (a)		4,918		8,361
Stein Mart, Inc.		3,078		12,158
Susser Holdings Corp. *		1,095		20,487
Systemax, Inc. * (a)		1,130		17,425
Talbots, Inc.		2,594		35,460
The Buckle, Inc.		1,579		81,998
The Dress Barn, Inc. *		4,655		75,690
The Men’s Wearhouse, Inc.		5,298		116,026

 

The accompanying notes are an integral part of the financial statements.

263

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade (continued)
The Wet Seal, Inc., Class A *		9,743	$	45,890
Titan Machinery, Inc. *		786		20,452
Tractor Supply Company *		3,452		147,124
Tuesday Morning Corp. *		3,627		15,270
Tween Brands, Inc. *		2,589		28,117
Zale Corp. * (a)		3,653		99,763
Zumiez, Inc. *		2,051		29,555
				3,914,322
Sanitary Services - 0.41%
Casella Waste Systems, Inc., Class A *		2,623		34,912
Darling International, Inc. *		8,427		115,703
Flanders Corp. *		2,376		16,656
Insituform Technologies, Inc., Class A *		2,983		54,768
PMFG, Inc. *		1,516		40,568
Waste Connections, Inc. *		6,800		246,908
				509,515
Semiconductors - 2.66%
Actel Corp. *		2,733		37,661
Advanced Analogic Technologies, Inc. *		5,033		23,001
Advanced Energy Industries, Inc. *		3,425		55,245
American Superconductor Corp. * (a)		4,366		107,273
Amkor Technology, Inc. *		11,263		84,585
Applied Micro Circuits Corp. *		6,902		54,940
Asyst Technologies, Inc. *		5,832		24,028
ATMI, Inc. *		3,345		81,585
AuthenTec, Inc. *		2,734		22,214
Axcelis Technologies, Inc. *		10,889		51,505
Brooks Automation, Inc. *		6,746		64,829
Cabot Microelectronics Corp. *		2,392		92,379
Cavium Networks, Inc. *		3,142		53,697
Cirrus Logic, Inc. *		6,845		42,507
Cymer, Inc. *		3,125		93,563
Diodes, Inc. *		3,054		72,655
DSP Group, Inc. *		2,735		21,196
Emcore Corp. * (a)		7,683		47,558
Emulex Corp. *		8,742		117,318
Entegris, Inc. *		11,953		73,631
Exar Corp. *		4,160		32,198
FormFactor, Inc. *		5,081		97,504
Hittite Microwave Corp. *		2,034		71,983
IXYS Corp. *		2,621		33,365
Kulicke & Soffa Industries, Inc. *		5,696		29,277
Lattice Semiconductor Corp. *		12,650		29,601
LTX Corp. *		7,365		13,183
Mattson Technology, Inc. *		5,534		28,223
Micrel, Inc.		5,147		47,404
Microsemi Corp. *		8,123		223,383
Microtune, Inc. *		6,203		23,013
MIPS Technologies, Inc., Class A *		5,107		20,326
MKS Instruments, Inc. *		5,163		116,374
Monolithic Power Systems, Inc. *		2,721		66,311
Netlogic Microsystems, Inc. * (a)		1,754		60,916
OmniVision Technologies, Inc. * (a)		5,243		61,238
Pericom Semiconductor Corp. *		2,303		31,413
Photronics, Inc. *		4,467		14,607

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Semiconductors (continued)
PLX Technology, Inc. *		3,199	$	18,202
PMC-Sierra, Inc. *		22,639		203,751
Power Integrations, Inc. *		3,174		93,411
Rubicon Technology, Inc. *		1,416		17,304
Rudolph Technologies, Inc. *		3,439		29,025
Semitool, Inc. *		2,773		26,732
Semtech Corp. *		6,327		93,576
Silicon Image, Inc. *		7,724		53,527
Skyworks Solutions, Inc. *		16,819		163,144
Spansion, Inc. *		13,800		31,050
Techwell, Inc. *		1,803		19,977
Tessera Technologies, Inc. *		5,015		116,699
Triquint Semiconductor, Inc. *		14,891		93,664
Ultra Clean Holdings, Inc. *		2,424		17,647
Ultratech, Inc. *		2,521		37,437
Veeco Instruments, Inc. *		3,385		56,902
Volterra Semiconductor Corp. *		2,704		42,507
				3,336,244
Software - 3.16%
ACI Worldwide, Inc. *		3,612		65,449
Actuate Corp. *		6,662		28,447
Advent Software, Inc. *		1,760		81,400
Allscripts Healthcare Solution, Inc. *		5,971		85,624
American Reprographics Company *		3,814		67,546
American Software, Inc., Class A		2,913		17,303
ANSYS, Inc. *		651		28,872
AsiaInfo Holdings, Inc. *		3,641		47,916
Avid Technology, Inc. * (a)		3,227		74,995
Blackbaud, Inc.		4,677		94,429
Blackboard, Inc. *		3,221		128,711
Bottomline Technologies, Inc. *		2,549		29,364
China Information Security Technology, Inc. *		2,521		13,639
CIBER, Inc. *		5,700		44,631
Commvault Systems, Inc. *		4,472		75,398
Concur Technologies, Inc. *		4,467		196,325
Deltek, Inc. *		1,443		11,558
DemandTec, Inc. * (a)		2,306		23,913
DivX, Inc. *		2,950		27,081
Double-Take Software, Inc. *		1,884		24,699
Ebix, Inc. *		244		26,733
Eclipsys Corp. *		5,673		126,565
Epicor Software Corp. *		6,240		53,227
EPIQ Systems, Inc. *		3,770		42,563
FARO Technologies, Inc. *		1,756		41,477
i2 Technologies, Inc. *		1,796		25,880
Igate Corp. *		2,497		28,091
Innerworkings, Inc. * (a)		3,477		41,237
Interactive Intelligence, Inc. *		1,601		16,058
JDA Software Group, Inc. *		2,707		49,349
Lawson Software, Inc. *		13,130		106,222
Magma Design Automation, Inc. *		4,572		23,226
Manhattan Associates, Inc. *		2,583		63,309
ManTech International Corp. *		2,126		125,200
MedAssets, Inc. *		1,655		29,426
MicroStrategy, Inc., Class A *		939		60,246
Monotype Imaging Holdings, Inc. *		1,711		21,456

 

The accompanying notes are an integral part of the financial statements.

264

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software (continued)
MSC Software Corp. *		4,825	$	62,628
Omnicell, Inc. *		3,491		53,587
Omniture, Inc. *		6,463		115,171
Opnet Technologies, Inc. *		1,865		24,711
Pegasystems, Inc.		1,661		24,350
Progress Software Corp. *		4,323		126,275
PROS Holdings, Inc. *		1,413		13,621
Quality Systems, Inc.		1,836		78,618
Riverbed Technology, Inc. *		5,830		99,168
Secure Computing Corp. *		5,738		24,559
Smith Micro Software, Inc. * (a)		3,307		25,034
Solera Holdings, Inc. *		5,386		166,050
SPSS, Inc. *		1,869		59,023
Sybase, Inc. *		8,117		279,306
Synchronoss Technologies, Inc. *		2,322		29,397
Take-Two Interactive Software, Inc. *		7,924		198,655
Taleo Corp. *		2,404		58,201
THQ, Inc. *		6,886		105,494
Tradestation Group, Inc. *		3,485		34,989
Ultimate Software Group, Inc. *		2,574		72,175
Unica Corp. *		1,792		15,895
VeriFone Holdings, Inc. *		7,055		142,229
Websense, Inc. *		4,726		106,997
				3,963,698
Steel - 0.19%
China Precision Steel, Inc. * (a)		1,921		9,586
General Steel Holdings, Inc. *		1,187		16,737
Northwest Pipe Company *		989		57,293
Olympic Steel, Inc.		937		44,610
Worthington Industries, Inc.		6,610		116,336
				244,562
Telecommunications Equipment & Services - 2.64%
ADTRAN, Inc.		5,782		131,830
Airvana, Inc. *		2,610		13,285
Alaska Communications Systems Group, Inc. (a)		4,735		49,812
Applied Signal Technology, Inc.		1,603		26,530
Arris Group, Inc. *		12,685		120,000
Aruba Networks, Inc. *		5,658		35,589
Atheros Communications, Inc. *		6,124		199,704
Comtech Telecommunications Corp. *		2,507		114,620
Consolidated Communications Holdings, Inc.		2,698		40,767
CPI International, Inc. *		1,210		17,303
FiberTower Corp. *		13,899		18,069
Finisar Corp. *		33,325		48,321
General Communication, Inc., Class A *		4,928		49,970
GeoEye, Inc. *		1,980		49,005
Global Crossing, Ltd. * (a)		2,784		50,836
Globalstar, Inc. *		5,530		17,143
Globecomm Systems, Inc. *		2,557		26,081
Harmonic, Inc. *		9,799		86,231
Harris Stratex Networks, Inc., Class A *		2,842		26,601
Hughes Communications, Inc. *		801		35,364
iBasis, Inc. *		3,064		11,214
ICO Global Communications Holdings, Ltd. *		11,161		32,702

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Telecommunications Equipment &
Services (continued)
Infinera Corp. *		9,684	$	106,718
InterDigital, Inc. *		4,721		125,295
Iowa Telecommunications Services, Inc.		3,465		63,721
J2 Global Communications, Inc. *		4,585		113,112
Loral Space & Communications, Inc. *		1,343		24,671
Mastec, Inc. *		4,517		63,780
Neutral Tandem, Inc. *		1,829		37,494
Nextwave Wireless, Inc. *		5,542		5,376
NTELOS Holdings Corp.		3,180		94,605
Oplink Communications, Inc. *		2,395		31,470
OpNext, Inc. *		1,923		12,192
Optium Corp. *		1,608		14,456
Orbcomm, Inc. * (a)		3,552		20,460
PAETEC Holding Corp. *		12,991		42,870
Plantronics, Inc.		5,045		130,161
Polycom, Inc. *		9,017		252,837
Powerwave Technologies, Inc. *		13,805		69,715
Premiere Global Services, Inc. *		6,442		97,403
RCN Corp. *		4,324		59,931
SAVVIS, Inc. * (a)		3,974		63,107
Shenandoah Telecommunications Company		2,613		45,153
ShoreTel, Inc. *		5,040		29,635
Sonus Networks, Inc. *		21,160		71,521
Starent Networks Corp. *		3,098		42,659
Symmetricom, Inc. *		5,371		26,425
Tekelec, Inc. *		6,785		111,342
TW Telecom, Inc. *		15,292		234,579
UTStarcom, Inc. * (a)		11,593		37,793
Viasat, Inc. *		2,694		70,664
Virgin Mobile USA, Inc. *		3,669		9,649
				3,309,771
Telephone - 0.25%
Atlantic Tele-Network, Inc.		1,055		35,311
Cbeyond Communications, Inc. *		2,557		43,290
Centennial Communications Corp., Class A *		7,260		55,321
Cincinnati Bell, Inc. *		25,799		100,616
Fairpoint Communications, Inc.		9,323		82,509
				317,047
Tires & Rubber - 0.08%
Cooper Tire & Rubber Company		6,101		58,326
Myers Industries, Inc.		3,062		40,296
				98,622
Tobacco - 0.23%
Alliance One International, Inc. *		10,330		41,526
Schweitzer Mauduit International, Inc.		1,810		34,318
Universal Corp.		2,780		144,338
Vector Group, Ltd.		3,672		67,785
				287,967
Toys, Amusements & Sporting Goods - 0.21%
Jakks Pacific, Inc. *		2,881		71,881
Marvel Entertainment, Inc. *		5,068		171,653
Russ Berrie & Company, Inc. *		2,078		15,772
				259,306

 

The accompanying notes are an integral part of the financial statements.

265

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Transportation - 1.15%
Aircastle, Ltd. (a)		4,716	$	62,581
American Commercial Lines, Inc. *		3,782		46,556
Arlington Tankers, Ltd.		1,476		27,217
Atlas Air Worldwide Holdings, Inc. *		1,376		79,450
Bristow Group, Inc. *		2,035		82,967
CAI International, Inc. *		856		12,669
DHT Maritime, Inc. *		4,134		36,834
Dynamex, Inc. *		1,121		33,047
Eagle Bulk Shipping, Inc. (a)		4,776		126,421
Genco Shipping & Trading, Ltd. (a)		2,262		141,918
General Maritime Corp. (a)		2,694		66,542
Golar LNG, Ltd. (a)		3,680		59,027
Horizon Lines, Inc. (a)		3,170		41,147
International Shipholding Corp. *		782		15,835
Knightsbridge Tankers, Ltd.		1,771		51,324
Marten Transport, Ltd. *		1,688		33,659
Nordic American Tanker Shipping, Ltd.		3,490		122,778
Pacer International, Inc.		3,602		75,930
PHI, Inc. *		1,483		56,962
Saia, Inc. *		1,717		33,104
Ship Finance International, Ltd. (a)		4,254		118,389
TBS International, Ltd. *		1,063		30,731
Teekay Tankers, Ltd. (a)		1,479		29,802
Textainer Group Holdings, Ltd.		950		17,081
Ultrapetrol Bahamas, Ltd. *		2,619		28,495
Universal Truckload Services, Inc. *		553		13,620
				1,444,086
Travel Services - 0.03%
Ambassadors Group, Inc.		2,152		36,412
Trucking & Freight - 0.72%
Arkansas Best Corp. (a)		2,323		80,422
Celadon Group, Inc. *		2,572		33,102
Forward Air Corp.		3,000		105,870
Heartland Express, Inc.		5,770		95,321
Hub Group, Inc., Class A *		3,827		152,850
Knight Transportation, Inc.		5,851		104,674
Old Dominion Freight Lines, Inc. *		2,862		95,219
Wabash National Corp.		3,415		29,676
Werner Enterprises, Inc.		4,324		98,631
YRC Worldwide, Inc. * (a)		5,930		107,333
				903,098
Utility Service - 0.24%
Cal Dive International, Inc. *		4,566		52,737
California Water Service Group		2,074		81,487
Consolidated Water Company, Ltd. (a)		1,700		39,100
ENGlobal Corp. * (a)		2,933		50,770
SJW Corp.		1,456		40,579
Southwest Water Company (a)		3,524		41,654
				306,327
TOTAL COMMON STOCKS (Cost $118,687,783)			$	116,430,694

 

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
PREFERRED STOCKS - 0.03%
Healthcare Products - 0.03%
Inverness Medical Innovations, Inc.,
Series B, 3.00%		126	$	30,744
TOTAL PREFERRED STOCKS (Cost $31,393)			$	30,744
RIGHTS - 0.00%
Homebuilders - 0.00%
Standard Pacific Corp. (Strike Price $3.05) *		8,009		40
TOTAL RIGHTS (Cost $0)			$	40
SHORT TERM INVESTMENTS - 15.24%
Federal Home Loan Bank Discount Notes zero coupon due 09/02/2008	$	2,000,000	$	1,999,892
John Hancock Cash Investment Trust, 2.5657% (c)(i)		11,596,721		11,596,721
Societe Generale North America, Inc. 2.10% due 09/02/2008		5,517,000		5,516,678
TOTAL SHORT TERM INVESTMENTS (Cost $19,113,291)			$	19,113,291
Total Investments (Small Cap Index Fund) (Cost $137,832,467) - 108.12%			$	135,574,769
Liabilities in Excess of Other Assets - (8.12)%				(10,177,790	)
TOTAL NET ASSETS - 100.00%			$	125,396,979

 

Small Cap Opportunities Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.42%
Aerospace - 1.36%
AAR Corp. *		24,845	$	394,290
Aerovironment, Inc. *		11,869		397,137
Curtiss-Wright Corp.		16,152		870,108
				1,661,535
Air Travel - 0.76%
Allegiant Travel Company *		25,274		783,747
Republic Airways Holdings, Inc. *		17,340		149,817
				933,564
Aluminum - 0.50%
Century Aluminum Company *		12,618		615,254
Apparel & Textiles - 1.86%
Deckers Outdoor Corp. *		2,390		271,719
Interface, Inc., Class A		51,935		683,984
Volcom, Inc. *		24,243		432,495
Wolverine World Wide, Inc.		33,544		883,214
				2,271,412
Auto Parts - 1.07%
Noble International, Ltd.		54,501		327,006
Tenneco, Inc. *		25,150		367,441
Titan International, Inc.		22,900		612,346
				1,306,793

 

The accompanying notes are an integral part of the financial statements.

266

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Automobiles - 1.19%
Penske Auto Group, Inc.		51,934	$	688,126
Rush Enterprises, Inc., Class B *		59,473		772,554
				1,460,680
Banking - 4.34%
BancFirst Corp.		8,548		411,501
Bank of the Ozarks, Inc.		42,005		939,652
Columbia Banking System, Inc.		14,870		208,180
Commerce Bancshares, Inc.		11,628		523,260
Community Trust Bancorp, Inc.		18,452		618,880
First Financial Bankshares, Inc.		10,374		509,052
First Midwest BanCorp, Inc.		15,850		354,723
Glacier Bancorp, Inc.		47,124		1,004,684
SVB Financial Group *		10,490		587,965
UCBH Holdings, Inc. (a)		19,890		116,356
Virginia Commerce Bancorp, Inc. *		6,200		32,736
				5,306,989
Biotechnology - 1.23%
Bio-Rad Laboratories, Inc., Class A *		6,636		714,034
Intermune, Inc. *		14,617		277,284
Techne Corp. *		6,590		508,550
				1,499,868
Broadcasting - 0.56%
World Wrestling Entertainment, Inc., Class A		41,999		683,324
Building Materials & Construction - 0.43%
Texas Industries, Inc.		10,060		529,860
Business Services - 2.71%
ABM Industries, Inc.		30,534		802,434
Ariba, Inc. *		71,710		1,056,288
Euronet Worldwide, Inc. *		23,568		442,843
Kforce, Inc. *		55,324		590,860
PC Mall, Inc. *		44,858		429,291
				3,321,716
Chemicals - 1.99%
A. Schulman, Inc.		27,162		657,864
FMC Corp.		8,556		629,208
H.B. Fuller Company		27,885		726,962
Zep, Inc.		21,573		422,615
				2,436,649
Commercial Services - 1.16%
Team, Inc. *		21,845		832,513
Wright Express Corp. *		19,787		588,663
				1,421,176
Computers & Business Equipment - 1.42%
Agilysys, Inc.		33,109		430,748
CACI International, Inc., Class A *		13,766		697,248
Parametric Technology Corp. *		30,600		614,448
				1,742,444
Construction & Mining Equipment - 0.33%
Pason Systems, Inc.		27,642		402,993
Cosmetics & Toiletries - 0.62%
Alberto-Culver Company		29,101		761,282

 

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas - 2.04%
Carrizo Oil & Gas, Inc. *		9,350	$	464,134
Parallel Petroleum Corp. *		42,783		566,447
Penn Virginia Corp.		14,746		975,890
Venoco, Inc. *		29,169		491,790
				2,498,261
Domestic Oil - 2.00%
Comstock Resources, Inc. *		11,746		762,785
Mariner Energy, Inc. *		27,240		792,412
Oil States International, Inc. *		16,056		893,195
				2,448,392
Drugs & Health Care - 4.38%
Gentiva Health Services, Inc. *		42,155		1,173,174
Invacare Corp.		35,700		907,851
Qiagen NV * (a)		13,410		284,024
Quidel Corp. *		36,852		720,457
Vivus, Inc. *		95,990		811,115
West Pharmaceutical Services, Inc.		29,898		1,459,321
				5,355,942
Educational Services - 0.43%
Capella Education Company *		10,626		528,218
Electrical Equipment - 2.85%
Anixter International, Inc. *		16,890		1,246,651
General Cable Corp. *		34,673		1,706,605
Methode Electronics, Inc.		48,827		536,609
				3,489,865
Electrical Utilities - 1.04%
Avista Corp.		16,596		370,091
EnerNOC, Inc. *		9,771		150,669
ITC Holdings Corp.		13,465		754,174
				1,274,934
Electronics - 1.43%
Belden, Inc.		18,009		661,651
OSI Systems, Inc. *		19,634		455,705
TTM Technologies, Inc. *		52,692		631,250
				1,748,606
Energy - 1.00%
Energen Corp.		8,564		478,214
New Jersey Resources Corp.		20,526		742,630
				1,220,844
Financial Services - 3.57%
Affiliated Managers Group, Inc. *		21,124		2,011,427
Delphi Financial Group, Inc.		14,710		394,669
GAMCO Investors, Inc.		10,789		511,399
KBW, Inc. *		27,216		803,961
World Acceptance Corp. *		16,650		649,683
				4,371,139
Food & Beverages - 1.74%
Flowers Foods, Inc.		51,072		1,350,343
TreeHouse Foods, Inc. *		28,147		781,361
				2,131,704
Gas & Pipeline Utilities - 0.93%
South Jersey Industries, Inc.		31,950		1,139,656

 

The accompanying notes are an integral part of the financial statements.

267

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products - 1.26%
Haemonetics Corp. *		11,027	$	691,613
Owens & Minor, Inc.		18,507		853,543
				1,545,156
Healthcare Services - 1.17%
Cross Country Healthcare, Inc. *		40,069		627,881
Skilled Healthcare Group, Inc. *		50,122		799,947
				1,427,828
Hotels & Restaurants - 0.73%
DineEquity, Inc.		14,717		292,280
Papa John’s International, Inc. *		21,483		599,805
				892,085
Household Products - 1.06%
Tempur-Pedic International, Inc.		53,728		607,664
Tupperware Brands Corp.		19,186		685,324
				1,292,988
Industrial Machinery - 5.11%
Actuant Corp., Class A		27,794		876,901
Chart Industries, Inc. *		16,074		742,297
Dionex Corp. *		7,299		475,822
Kadant, Inc. *		32,863		770,637
Lufkin Industries, Inc.		8,115		752,991
Middleby Corp. * (a)		11,692		623,885
NATCO Group, Inc. *		15,475		784,428
Rofin-Sinar Technologies, Inc. *		11,836		478,411
Valmont Industries, Inc.		6,945		741,309
				6,246,681
Insurance - 3.83%
Aspen Insurance Holdings, Ltd.		33,580		910,018
Assured Guaranty, Ltd.		32,798		533,295
FPIC Insurance Group, Inc. *		13,097		676,591
Max Re Capital, Ltd.		22,770		592,020
Meadowbrook Insurance Group, Inc.		112,920		756,564
Tower Group, Inc.		34,710		727,175
Zenith National Insurance Corp.		12,700		485,013
				4,680,676
Internet Content - 0.21%
TheStreet.com, Inc.		35,300		250,630
Internet Software - 2.16%
Cybersource Corp. *		37,576		645,556
DealerTrack Holdings, Inc. *		37,973		699,842
Digital River, Inc. *		18,280		799,750
eResearch Technology, Inc. *		36,779		496,149
				2,641,297
Investment Companies - 0.98%
KKR Financial Holdings LLC		128,260		1,203,079
Leisure Time - 0.58%
Bally Technologies, Inc. *		6,800		232,764
Penn National Gaming, Inc. *		13,979		472,770
				705,534
Manufacturing - 4.69%
AptarGroup, Inc.		12,975		524,060
Carlisle Companies, Inc.		24,770		802,301

 

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Manufacturing (continued)
Ceradyne, Inc. *		28,102	$	1,266,276
Kaydon Corp.		15,030		837,622
Koppers Holdings, Inc.		24,490		1,121,887
Snap-on, Inc.		12,012		684,924
Spartan Motors, Inc.		106,059		501,659
				5,738,729
Metal & Metal Products - 2.99%
A. M. Castle & Company		41,020		823,681
Haynes International, Inc. *		5,560		325,038
Horsehead Holding Corp. *		24,690		205,421
RBC Bearings, Inc. *		44,115		1,761,953
Reliance Steel & Aluminum Company		9,564		545,244
				3,661,337
Mining - 0.45%
Compass Minerals International, Inc.		8,013		555,061
Petroleum Services - 2.62%
Complete Production Services, Inc. *		23,606		697,557
Core Laboratories N.V.		7,951		987,037
Flotek Industries, Inc. * (a)		33,110		557,904
Oceaneering International, Inc. *		11,717		731,258
Rex Energy Corp. *		11,460		230,002
				3,203,758
Pharmaceuticals - 0.56%
ViroPharma, Inc. *		46,719		684,433
Real Estate - 8.26%
Alexandria Real Estate Equities, Inc., REIT		6,053		651,969
Anthracite Capital, Inc., REIT (a)		88,528		498,413
Ashford Hospitality Trust, Inc., REIT		109,289		496,172
BioMed Realty Trust, Inc., REIT		29,620		793,223
Capstead Mortage Corp., REIT		55,620		652,979
Corporate Office Properties Trust, REIT		27,737		1,084,517
DuPont Fabros Technology, Inc., REIT		43,510		764,036
Gramercy Capital Corp., REIT (a)		67,864		454,010
Hatteras Financial Corp., REIT		24,950		617,512
Jer Investors Trust, Inc., REIT (a)		92,694		532,990
LaSalle Hotel Properties, REIT		43,410		1,131,699
NorthStar Realty Finance Corp., REIT (a)		121,800		870,870
RAIT Financial Trust, REIT (a)		132,396		785,108
Senior Housing Properties Trust, REIT		15,804		342,631
Universal Health Realty Income Trust, REIT		11,796		432,795
				10,108,924
Retail Grocery - 1.50%
Ruddick Corp.		57,674		1,836,340
Retail Trade - 2.34%
Cash America International, Inc.		13,350		552,556
Citi Trends, Inc. *		33,969		700,441
FGX International Holdings, Ltd. *		16,600		215,966
Fossil, Inc. *		14,706		440,004
Hibbett Sports, Inc. * (a)		10,340		247,126
Pantry, Inc. *		25,735		471,980
Sonic Automotive, Inc.		21,520		231,555
				2,859,628

 

The accompanying notes are an integral part of the financial statements.

268

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Sanitary Services - 0.55%
Waste Connections, Inc. *		18,429	$	669,157
Semiconductors - 3.12%
ATMI, Inc. *		23,980		584,872
Diodes, Inc. *		42,424		1,009,267
MKS Instruments, Inc. *		27,484		619,490
Power Integrations, Inc. *		19,242		566,292
Semtech Corp. *		44,327		655,596
Silicon Motion Technology Corp., ADR *		51,620		384,053
				3,819,570
Software - 2.22%
Blackbaud, Inc.		27,490		555,023
Double-Take Software, Inc. *		36,310		476,024
Omnicell, Inc. *		39,392		604,667
Open Text Corp. *		20,673		725,002
THQ, Inc. *		23,380		358,182
				2,718,898
Steel - 0.56%
Northwest Pipe Company *		11,921		690,584
Telecommunications Equipment & Services - 4.17%
Alaska Communications Systems Group, Inc.		54,355		571,815
Arris Group, Inc. *		75,520		714,419
Comtech Telecommunications Corp. *		43,217		1,975,881
DataPath, Inc. * (h)		104,400		156,600
J2 Global Communications, Inc. *		36,310		895,768
NeuStar, Inc., Class A *		17,530		420,895
NTELOS Holdings Corp.		12,229		363,813
				5,099,191
Telephone - 0.52%
Cincinnati Bell, Inc. *		162,062		632,042
Transportation - 0.77%
Marten Transport, Ltd. *		47,439		945,934
Trucking & Freight - 1.84%
Landstar Systems, Inc.		24,558		1,203,833
Old Dominion Freight Lines, Inc. *		18,560		617,491
Oshkosh Corp.		27,904		430,280
				2,251,604
Water Treatment Systems - 0.23%
Cascal N.V. *		26,145		275,045
TOTAL COMMON STOCKS (Cost $116,880,316)			$	119,199,289
SHORT TERM INVESTMENTS - 3.80%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	4,653,804	$	4,653,804
TOTAL SHORT TERM INVESTMENTS (Cost $4,653,804)			$	4,653,804

 

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 2.52%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $3,089,583 on 09/02/2008, collateralized by $1,025,000 Federal National Mortgage Association, 3.20% due 05/06/2010 (valued at $1,033,815, including interest) and $2,085,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $2,121,071, including interest)	$	3,089,000	$	3,089,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,089,000)			$	3,089,000
Total Investments (Small Cap Opportunities Fund) (Cost $124,623,120) - 103.74%			$	126,942,093
Liabilities in Excess of Other Assets - (3.74)%				(4,579,159	)
TOTAL NET ASSETS - 100.00%			$	122,362,934

 

Small Company Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.49%
Aerospace - 2.34%
Argon ST, Inc. *		461	$	11,511
Esterline Technologies Corp. *		14,297		807,638
Teledyne Technologies, Inc. *		4,625		288,276
Woodward Governor Company		8,504		393,990
				1,501,415
Air Travel - 0.30%
Republic Airways Holdings, Inc. *		7,264		62,761
SkyWest, Inc.		7,712		131,798
				194,559
Aluminum - 0.30%
Century Aluminum Company *		3,985		194,309
Apparel & Textiles - 3.07%
Deckers Outdoor Corp. *		138		15,689
Gymboree Corp. *		11,397		447,332
Perry Ellis International, Inc. *		8,116		138,459
Skechers U.S.A., Inc., Class A *		15,433		295,079
True Religion Apparel, Inc. *		3,409		92,554
Unifirst Corp.		2,037		87,652
Warnaco Group, Inc. *		13,956		719,711
Wolverine World Wide, Inc.		6,666		175,516
				1,971,992
Auto Parts - 1.00%
ArvinMeritor, Inc.		2,912		43,709
Autoliv, Inc.		1,646		63,190
TRW Automotive Holdings Corp. *		27,891		534,949
				641,848

 

The accompanying notes are an integral part of the financial statements.

269

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Automobiles - 0.18%
Americas Car Mart, Inc. *		6,213	$	117,488
Banking - 4.17%
BancFirst Corp.		2,569		123,672
Bank of Hawaii Corp.		14,669		775,697
Cardinal Financial Corp.		2,198		18,661
Center Financial Corp.		970		13,066
Charter Financial Corp.		897		12,558
Commerce Bancshares, Inc.		5,034		226,530
Community Bank Systems, Inc.		4,214		95,236
Financial Institutions, Inc.		2,754		48,388
First Citizens Bancshares, Inc.		860		127,641
Old National Bancorp		2,189		38,154
Old Second Bancorp, Inc.		899		15,220
Oriental Financial Group, Inc.		34,794		601,240
Prosperity Bancshares, Inc.		5,176		165,477
Republic Bancorp, Inc., Class A		449		13,304
Southside Bancshares, Inc.		766		16,661
SVB Financial Group *		2,103		117,873
TrustCo Bank Corp., NY		3,527		34,494
Valley National Bancorp		11,743		234,977
				2,678,849
Biotechnology - 2.12%
Bio-Rad Laboratories, Inc., Class A *		1,036		111,474
Invitrogen Corp. *		16,836		714,857
Martek Biosciences Corp. *		15,989		534,192
				1,360,523
Building Materials & Construction - 2.60%
EMCOR Group, Inc. *		33,488		1,140,936
Lennox International, Inc.		3,158		116,846
NCI Building Systems, Inc. *		9,661		369,823
Perini Corp. *		1,547		41,321
				1,668,926
Business Services - 4.38%
Acxiom Corp.		26,247		379,269
Bowne & Company, Inc.		4,599		55,648
CGI Group, Inc., Class A *		3,799		40,649
COMSYS IT Partners, Inc. *		13,448		159,224
CSG Systems International, Inc. *		18,169		343,394
Global Cash Access, Inc. *		13,976		83,716
Hewitt Associates, Inc., Class A *		4,139		166,429
Informatica Corp. *		2,972		50,138
Insight Enterprises, Inc. *		7,134		118,710
Michael Baker Corp. *		3,558		123,178
On Assignment, Inc. *		47		444
PC Mall, Inc. *		11,806		112,983
PRG-Schultz International, Inc. *		4,786		56,427
SAIC, Inc. *		6,129		122,887
Standard Parking Corp. *		1,136		24,799
Watson Wyatt Worldwide, Inc., Class A		16,661		976,168
				2,814,063
Cellular Communications - 1.08%
Brightpoint, Inc. *		2,917		25,116
Syniverse Holdings, Inc. *		40,380		669,904
				695,020

 

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Chemicals - 0.33%
CF Industries Holdings, Inc.		1,342	$	204,521
Innophos Holdings, Inc.		170		6,373
				210,894
Commercial Services - 0.07%
Cenveo, Inc. *		4,538		47,059
Computers & Business Equipment - 2.49%
Lexmark International, Inc. *		17,819		640,949
NCI, Inc. *		617		16,536
Parametric Technology Corp. *		4,619		92,750
Radiant Systems, Inc. *		6,304		57,492
RadiSys Corp. *		1,138		12,598
Standard Microsystems Corp. *		15,300		447,066
Super Micro Computer, Inc. *		1,403		13,988
Western Digital Corp. *		11,825		322,349
				1,603,728
Construction Materials - 0.34%
Applied Industrial Technologies, Inc.		4,800		139,728
Comfort Systems USA, Inc.		5,108		77,846
				217,574
Cosmetics & Toiletries - 0.13%
Helen of Troy, Ltd. *		3,593		86,412
Crude Petroleum & Natural Gas - 2.17%
Penn Virginia Corp.		5,570		368,622
Petroquest Energy, Inc. *		6,085		112,512
Unit Corp. *		9,982		676,081
W&T Offshore, Inc.		6,733		236,732
				1,393,947
Domestic Oil - 3.03%
Holly Corp.		6,940		222,080
McMoran Exploration Company * (a)		8,246		225,528
Oil States International, Inc. *		12,269		682,524
St. Mary Land & Exploration Company		8,158		344,431
Stone Energy Corp. *		9,900		471,933
				1,946,496
Drugs & Health Care - 2.26%
Invacare Corp.		11,686		297,175
Matrixx Initiatives, Inc. *		746		13,219
Molina Healthcare, Inc. * (a)		22,373		704,079
Vivus, Inc. * (a)		52,034		439,687
				1,454,160
Electrical Equipment - 2.16%
A.O. Smith Corp.		1,292		53,192
GrafTech International, Ltd. *		20,507		416,702
Hubbell, Inc., Class B		2,573		111,951
Methode Electronics, Inc.		28,152		309,391
W.H. Brady Company, Class A		7,368		270,479
Wesco International, Inc. *		5,939		228,295
				1,390,010
Electrical Utilities - 0.55%
Central Vermont Public Service Corp.		1,407		34,190
El Paso Electric Company *		13,972		297,464

 

The accompanying notes are an integral part of the financial statements.

270

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electrical Utilities (continued)
Maine & Maritimes Corp. *		439	$	19,470
				351,124
Electronics - 5.22%
Analogic Corp.		5,798		392,525
Belden, Inc.		6,088		223,673
Celestica, Inc. *		92,123		773,833
Cogo Group, Inc. *		4,657		25,660
Cynosure, Inc. *		1,039		25,746
Dolby Laboratories, Inc., Class A *		8,266		336,426
Itron, Inc. *		503		52,101
Jabil Circuit, Inc.		7,165		120,802
Mentor Graphics Corp. *		20,354		248,319
Multi-Fineline Electronix, Inc. *		3,847		65,630
Stoneridge, Inc. *		7,293		92,621
Synopsys, Inc. *		25,121		540,855
Trimble Navigation, Ltd. *		11,226		380,000
TTM Technologies, Inc. *		6,522		78,134
				3,356,325
Financial Services - 2.79%
Advance America Cash Advance Centers, Inc.		6,078		29,904
Broadridge Financial Solutions, Inc.		8,759		174,917
Calamos Asset Management, Inc.		20,086		430,443
City Holding Company		5,302		221,677
Evercore Partners, Inc.		2,083		27,621
Interactive Brokers Group, Inc. *		17,368		474,146
Knight Capital Group, Inc. *		4,411		76,046
Thinkorswim Group, Inc. *		653		6,550
UMB Financial Corp.		4,949		257,496
World Acceptance Corp. *		2,365		92,282
				1,791,082
Food & Beverages - 0.67%
Cal-Maine Foods, Inc. (a)		1,067		42,136
Nash Finch Company		929		37,829
Overhill Farms, Inc. *		9,316		60,554
Ralcorp Holdings, Inc. *		4,755		291,957
				432,476
Gas & Pipeline Utilities - 2.97%
Atmos Energy Corp.		7,626		210,020
National Fuel Gas Company		9,352		442,443
Nicor, Inc.		8,519		390,937
The Laclede Group, Inc.		5,553		249,496
UGI Corp.		22,482		618,255
				1,911,151
Healthcare Products - 2.94%
ArthroCare Corp. *		1,404		35,998
CONMED Corp. *		6,942		221,866
Cryolife, Inc. *		5,626		88,778
Cyberonics, Inc. *		3,894		83,526
Edwards Lifesciences Corp. *		780		46,184
Hanger Orthopedic Group, Inc. *		3,240		54,853
Kensey Nash Corp. *		972		35,002
Owens & Minor, Inc.		21,983		1,013,856
PSS World Medical, Inc. *		8,473		154,802
STERIS Corp.		1,052		38,682

 

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products (continued)
Synovis Life Technologies, Inc. *		3,707	$	81,406
The Medicines Company *		838		20,414
Thoratec Corp. *		515		13,720
				1,889,087
Healthcare Services - 2.27%
AMERIGROUP Corp. *		11,620		300,726
Apria Healthcare Group, Inc. *		40,158		794,325
Emergency Medical Services Corp., Class A *		392		13,046
Healthsouth Corp. *		2,356		42,384
LHC Group, Inc. *		650		18,934
Magellan Health Services, Inc. *		298		12,981
Pediatrix Medical Group, Inc. *		4,807		273,759
				1,456,155
Hotels & Restaurants - 2.31%
AFC Enterprises, Inc. *		18,164		164,747
Bob Evans Farms, Inc.		2,198		61,698
Burger King Holdings, Inc.		10,675		264,954
CEC Entertainment, Inc. *		24,399		835,910
Choice Hotels International, Inc.		5,001		134,977
Einstein Noah Restaurant Group, Inc. *		2,041		24,063
				1,486,349
Household Products - 0.80%
Tupperware Brands Corp.		14,347		512,475
Industrial Machinery - 3.08%
Actuant Corp., Class A		4,628		146,013
Altra Holdings, Inc. *		2,060		37,059
Chart Industries, Inc. *		4,756		219,632
Cognex Corp.		4,000		80,920
EnPro Industries, Inc. *		2,981		125,649
Gardner Denver, Inc. *		10,057		453,973
Robbins & Myers, Inc.		16,567		743,030
Tecumseh Products Company, Class A *		6,627		174,887
				1,981,163
Insurance - 3.11%
Allied World Assurance Holdings, Ltd.		13,104		506,076
American Financial Group, Inc.		8,066		230,123
American Physicians Service Group, Inc.		950		20,976
Amerisafe, Inc. *		6,665		123,236
Aspen Insurance Holdings, Ltd.		21,899		593,463
Navigators Group, Inc. *		1,764		92,434
Platinum Underwriters Holdings, Ltd.		11,198		404,808
Reinsurance Group of America, Inc.		638		30,726
				2,001,842
Internet Content - 0.07%
Dice Holdings, Inc. *		5,400		48,006
Internet Retail - 0.13%
1-800-Flowers.com, Inc. *		13,991		85,905
Internet Service Provider - 0.99%
Earthlink, Inc. *		64,206		598,400
United Online, Inc.		3,397		35,770
				634,170

 

The accompanying notes are an integral part of the financial statements.

271

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Internet Software - 0.31%
eResearch Technology, Inc. *		14,615	$	197,156
Leisure Time - 3.33%
Bally Technologies, Inc. *		13,965		478,022
Carmike Cinemas, Inc.		3,169		16,701
DreamWorks Animation SKG, Inc., Class A *		21,215		676,334
Polaris Industries, Inc. (a)		16,762		755,798
RC2 Corp. *		247		6,217
WMS Industries, Inc. *		6,245		209,832
				2,142,904
Life Sciences - 0.04%
Repligen Corp. *		5,376		28,869
Manufacturing - 1.02%
Acuity Brands, Inc.		5,391		234,562
ATC Technology Corp. *		2,030		49,167
Coherent, Inc. *		447		16,034
Koppers Holdings, Inc.		6,188		283,472
Lydall, Inc. *		1,876		21,931
Thermadyne Holdings Corp. *		2,136		48,060
				653,226
Medical-Hospitals - 0.86%
Centene Corp. *		21,992		496,579
Exactech, Inc. *		2,297		59,424
				556,003
Metal & Metal Products - 0.31%
Crown Holdings, Inc. *		2,458		68,185
Gibraltar Industries, Inc.		1,079		23,209
Hawk Corp. *		4,473		107,352
				198,746
Office Furnishings & Supplies - 0.70%
IKON Office Solutions, Inc.		998		17,275
Knoll, Inc.		26,185		431,267
				448,542
Paper - 1.76%
Buckeye Technologies, Inc. *		26,289		242,122
KapStone Paper and Packaging Corp. *		4,911		36,734
Rock-Tenn Company, Class A		23,225		851,893
				1,130,749
Petroleum Services - 2.00%
Atwood Oceanics, Inc. *		7,455		303,120
Basic Energy Services, Inc. *		16,727		488,930
Core Laboratories N.V.		1,504		186,707
ION Geophysical Corp. *		11,873		191,393
Trico Marine Services, Inc. * (a)		4,863		115,496
				1,285,646
Pharmaceuticals - 2.21%
Cubist Pharmaceuticals, Inc. *		8,471		186,616
Enzon Pharmaceuticals, Inc. * (a)		3,804		34,426
King Pharmaceuticals, Inc. *		42,795		489,575
Medicis Pharmaceutical Corp., Class A		26,291		544,487
OSI Pharmaceuticals, Inc. *		3,041		153,570
Questcor Pharmaceuticals, Inc. *		2,535		13,841
				1,422,515

 

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Publishing - 0.44%
John Wiley & Sons, Inc., Class A		266	$	12,656
Valassis Communications, Inc. *		28,427		267,498
				280,154
Real Estate - 5.21%
Associated Estates Realty Corp., REIT		1,385		20,359
BioMed Realty Trust, Inc., REIT		9,799		262,417
Entertainment Properties Trust, REIT		1,898		103,004
Equity Lifestyle Properties, Inc., REIT		16,214		805,512
Essex Property Trust, Inc., REIT		4,060		476,441
Extra Space Storage, Inc., REIT		27,560		434,070
Lexington Corporate Property Trust, REIT		948		14,135
Medical Properties Trust, Inc., REIT		6,675		73,692
Mid-America Apartment Communities, Inc., REIT		3,547		177,918
Senior Housing Properties Trust, REIT		7,923		171,771
Sovran Self Storage, Inc., REIT		2,156		83,006
Taubman Centers, Inc., REIT		15,002		728,197
				3,350,522
Retail - 0.05%
Sport Supply Group, Inc.		2,573		31,391
Retail Trade - 5.22%
Big Lots, Inc. *		21,558		637,470
Cash America International, Inc.		20,493		848,205
Dollar Tree, Inc. *		12,460		477,966
Finish Line, Inc.		3,866		46,740
Fossil, Inc. *		1,525		45,628
Genesco, Inc. *		12,511		458,028
Jo-Ann Stores, Inc. *		18,617		464,866
New York & Company, Inc. *		15,436		182,145
RadioShack Corp.		5,408		102,806
Rent-A-Center, Inc. *		1,935		43,847
The Dress Barn, Inc. *		2,843		46,227
				3,353,928
Sanitary Services - 1.16%
Darling International, Inc. *		54,101		742,807
Semiconductors - 4.02%
Amkor Technology, Inc. *		30,310		227,628
ASM International N.V. * (a)		10,511		261,303
Cirrus Logic, Inc. *		11,369		70,601
Emulex Corp. *		13,436		180,311
Kulicke & Soffa Industries, Inc. *		12,760		65,586
Microsemi Corp. *		10,183		280,033
National Semiconductor Corp.		3,633		77,855
Pericom Semiconductor Corp. *		1,278		17,432
QLogic Corp. *		27,664		516,764
Silicon Image, Inc. *		14,433		100,021
Skyworks Solutions, Inc. *		47,144		457,297
Triquint Semiconductor, Inc. *		19,433		122,234
Ultratech, Inc. *		785		11,657
Volterra Semiconductor Corp. *		12,605		198,151
				2,586,873
Software - 3.32%
American Reprographics Company *		3,623		64,163
ANSYS, Inc. *		4,518		200,373

 

The accompanying notes are an integral part of the financial statements.

272

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software (continued)
CIBER, Inc. *		96	$	752
Compuware Corp. *		24,805		283,521
JDA Software Group, Inc. *		6,917		126,097
ManTech International Corp. *		2,740		161,359
Open Text Corp. *		5,677		199,092
Soapstone Networks, Inc. *		10,486		41,105
SPSS, Inc. *		8,237		260,125
Sybase, Inc. *		22,252		765,691
Tradestation Group, Inc. *		3,082		30,943
				2,133,221
Steel - 0.09%
Olympic Steel, Inc.		1,204		57,322
Telecommunications Equipment & Services - 0.75%
Comtech Telecommunications Corp. *		708		32,370
Harmonic, Inc. *		3,730		32,824
InterDigital, Inc. *		7,568		200,855
NTELOS Holdings Corp.		279		8,300
Plantronics, Inc.		512		13,209
Tekelec, Inc. *		11,670		191,505
				479,063
Telephone - 1.17%
CenturyTel, Inc.		17,529		677,145
Cincinnati Bell, Inc. *		19,166		74,748
				751,893
Tobacco - 0.05%
Alliance One International, Inc. *		8,381		33,692
Toys, Amusements & Sporting Goods - 0.75%
Jakks Pacific, Inc. *		19,446		485,178
Transportation - 1.15%
Horizon Lines, Inc.		13,191		171,219
Kirby Corp. *		10,540		482,627
Pacer International, Inc.		3,050		64,294
USA Truck, Inc. *		1,031		18,970
				737,110
Trucking & Freight - 1.15%
Arkansas Best Corp. (a)		4,867		168,495
Hub Group, Inc., Class A *		7,218		288,287
Landstar Systems, Inc.		4,311		211,325
Werner Enterprises, Inc.		3,044		69,434
				737,541
TOTAL COMMON STOCKS (Cost $60,665,711)			$	63,951,633
SHORT TERM INVESTMENTS - 3.63%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	2,333,192	$	2,333,192
TOTAL SHORT TERM INVESTMENTS (Cost $2,333,192)			$	2,333,192

 

Small Company Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 0.55%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $354,067 on 09/02/2008, collateralized by $370,000 Federal Home Loan Bank, 5.70% due 04/03/2028 (valued at $365,375, including interest)	$	354,000	$	354,000
TOTAL REPURCHASE AGREEMENTS (Cost $354,000)			$	354,000
Total Investments (Small Company Fund) (Cost $63,352,903) - 103.67%			$	66,638,825
Liabilities in Excess of Other Assets - (3.67)%				(2,356,783	)
TOTAL NET ASSETS - 100.00%			$	64,282,042

 

Small Company Growth Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 95.93%
Advertising - 1.06%
inVentiv Health, Inc. *		42,362	$	934,930
ValueClick, Inc. *		66,425		856,218
				1,791,148
Aerospace - 0.90%
TransDigm Group, Inc. *		40,475		1,520,241
Apparel & Textiles - 1.83%
Interface, Inc., Class A		76,667		1,009,704
Warnaco Group, Inc. *		40,361		2,081,417
				3,091,121
Auto Parts - 0.45%
Tenneco, Inc. *		51,806		756,886
Banking - 2.00%
Greenhill & Company, Inc. (a)		23,654		1,563,529
SVB Financial Group *		32,319		1,811,480
				3,375,009
Biotechnology - 3.08%
Acorda Therapeutics, Inc. *		10,397		292,675
Affymetrix, Inc. *		56,723		486,683
AMAG Pharmaceuticals, Inc. *		17,004		657,885
Human Genome Sciences, Inc. *		78,946		584,990
Martek Biosciences Corp. *		35,241		1,177,402
Myriad Genetics, Inc. *		29,295		1,997,919
				5,197,554
Building Materials & Construction - 1.32%
Eagle Materials, Inc.		39,587		1,208,591
Texas Industries, Inc.		19,365		1,019,955
				2,228,546
Business Services - 6.62%
CoStar Group, Inc. * (a)		37,425		1,976,414
Euronet Worldwide, Inc. *		55,313		1,039,331
Global Payments, Inc.		23,445		1,130,283

 

The accompanying notes are an integral part of the financial statements.

273

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Growth Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
Informatica Corp. *		74,990	$	1,265,081
Korn/Ferry International *		62,124		1,104,565
SRA International, Inc., Class A *		48,445		1,137,489
Syntel, Inc.		35,874		1,186,353
Tetra Tech, Inc. *		81,258		2,322,354
				11,161,870
Chemicals - 0.64%
Calgon Carbon Corp. * (a)		50,404		1,075,117
Commercial Services - 1.89%
Chemed Corp.		28,946		1,266,098
Live Nation, Inc. *		65,226		1,046,878
Riskmetrics Group, Inc. * (a)		39,244		871,609
				3,184,585
Computers & Business Equipment - 1.49%
Cogent, Inc. *		102,530		1,127,830
Tech Data Corp. *		40,676		1,388,679
				2,516,509
Construction & Mining Equipment - 1.04%
Bucyrus International, Inc., Class A		25,147		1,756,518
Containers & Glass - 1.03%
Greif, Inc., Class A		25,077		1,733,071
Crude Petroleum & Natural Gas - 5.67%
Arena Resources, Inc. *		44,562		1,990,584
Bill Barrett Corp. *		42,764		1,684,046
Carrizo Oil & Gas, Inc. *		37,662		1,869,542
Unit Corp. *		37,463		2,537,369
Whiting Petroleum Corp. *		15,319		1,474,301
				9,555,842
Drugs & Health Care - 3.21%
BioMarin Pharmaceutical, Inc. *		55,587		1,675,392
Mentor Corp.		33,044		815,526
Meridian Bioscience, Inc.		46,795		1,329,914
Parexel International Corp. *		49,958		1,587,166
				5,407,998
Educational Services - 2.15%
DeVry, Inc.		33,816		1,744,229
Strayer Education, Inc.		8,979		1,884,154
				3,628,383
Electrical Equipment - 2.56%
General Cable Corp. *		34,242		1,685,391
Varian, Inc. *		34,060		1,693,123
Wesco International, Inc. *		24,550		943,702
				4,322,216
Electrical Utilities - 2.38%
ITC Holdings Corp.		25,643		1,436,264
Pike Electric Corp. *		88,950		1,676,708
Quanta Services, Inc. *		28,232		901,730
				4,014,702
Financial Services - 2.45%
Affiliated Managers Group, Inc. *		16,048		1,528,091
Bankrate, Inc. * (a)		28,675		925,056

 

Small Company Growth Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
National Financial Partners Corp. (a)		31,600	$	637,372
optionsXpress Holdings, Inc.		45,021		1,038,634
				4,129,153
Food & Beverages - 0.94%
Ralcorp Holdings, Inc. *		25,930		1,592,102
Healthcare Products - 5.47%
Gen-Probe, Inc. *		23,609		1,410,638
Insulet Corp. *		51,313		735,828
Nuvasive, Inc. *		50,951		2,428,324
The Medicines Company *		60,914		1,483,865
Wright Medical Group, Inc. *		60,867		1,874,095
Zoll Medical Corp. *		37,336		1,298,173
				9,230,923
Healthcare Services - 1.14%
Pediatrix Medical Group, Inc. *		24,073		1,370,957
The Advisory Board Company *		17,689		546,767
				1,917,724
Hotels & Restaurants - 2.72%
Buffalo Wild Wings, Inc. * (a)		36,178		1,305,302
Choice Hotels International, Inc.		32,163		868,079
Jack in the Box, Inc. *		56,083		1,330,850
P.F. Chang’s China Bistro, Inc. * (a)		41,867		1,087,705
				4,591,936
Household Products - 1.12%
Church & Dwight, Inc.		30,154		1,884,625
Industrial Machinery - 1.57%
FMC Technologies, Inc. *		24,541		1,314,416
Regal-Beloit Corp.		28,319		1,329,577
				2,643,993
Industrials - 0.68%
EnergySolutions, Inc.		61,895		1,143,201
Insurance - 0.73%
ProAssurance Corp. *		22,778		1,227,734
Internet Software - 0.44%
DealerTrack Holdings, Inc. *		40,195		740,794
Leisure Time - 0.39%
National Cinemedia, Inc.		58,712		656,987
Manufacturing - 2.40%
Barnes Group, Inc.		45,657		1,101,247
Coherent, Inc. *		48,124		1,726,208
Hexcel Corp. *		58,535		1,216,357
				4,043,812
Medical-Hospitals - 2.08%
Cepheid, Inc. *		38,851		722,629
LifePoint Hospitals, Inc. *		42,699		1,440,664
VCA Antech, Inc. *		43,626		1,341,063
				3,504,356
Metal & Metal Products - 0.59%
Dynamic Materials Corp.		32,518		1,000,579
Petroleum Services - 1.96%
Dril-Quip, Inc. *		34,108		1,876,281

 

The accompanying notes are an integral part of the financial statements.

274

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Growth Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Petroleum Services (continued)
ION Geophysical Corp. *		88,973	$	1,434,245
				3,310,526
Pharmaceuticals - 1.61%
PharMerica Corp. *		2,476		58,607
Sciele Pharma, Inc. *		62,911		1,212,295
United Therapeutics Corp. *		13,655		1,449,205
				2,720,107
Pollution Control - 0.65%
Fuel Tech, Inc. * (a)		59,721		1,095,283
Railroads & Equipment - 1.38%
Wabtec Corp.		39,235		2,317,611
Real Estate - 0.96%
BioMed Realty Trust, Inc., REIT		60,480		1,619,654
Retail Trade - 4.48%
AnnTaylor Stores Corp. *		50,780		1,232,938
Big Lots, Inc. *		53,067		1,569,191
Dick’s Sporting Goods, Inc. *		31,875		729,619
Hot Topic, Inc. *		123,801		768,804
Longs Drug Stores Corp.		32,642		2,338,799
Zumiez, Inc. * (a)		62,877		906,058
				7,545,409
Semiconductors - 5.25%
Cirrus Logic, Inc. *		131,388		815,919
Diodes, Inc. *		52,312		1,244,502
Hittite Microwave Corp. *		32,317		1,143,699
Microsemi Corp. *		49,325		1,356,438
Power Integrations, Inc. *		42,511		1,251,099
Silicon Laboratories, Inc. *		43,920		1,480,543
Varian Semiconductor Equipment Associates, Inc. *		48,522		1,567,261
				8,859,461
Software - 8.01%
ANSYS, Inc. *		36,487		1,618,198
Aspen Technology, Inc. *		102,415		1,474,776
Blackboard, Inc. *		47,927		1,915,163
Eclipsys Corp. *		74,537		1,662,921
JDA Software Group, Inc. *		70,916		1,292,799
Lawson Software, Inc. *		140,794		1,139,023
Manhattan Associates, Inc. *		53,272		1,305,697
Omniture, Inc. *		23,159		412,693
Quality Systems, Inc.		40,744		1,744,658
THQ, Inc. *		61,247		938,304
				13,504,232
Steel - 0.60%
Carpenter Technology Corp.		26,074		1,011,932
Telecommunications Equipment & Services - 4.66%
Harmonic, Inc. *		132,050		1,162,040
NeuStar, Inc., Class A *		49,179		1,180,788
NICE Systems, Ltd., ADR *		43,614		1,335,897
Polycom, Inc. *		57,864		1,622,507
SBA Communications Corp. *		45,129		1,576,356

 

Small Company Growth Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Telecommunications Equipment & Services (continued)
Starent Networks Corp. * (a)		71,763	$	��  988,176
				7,865,764
Toys, Amusements & Sporting Goods - 1.13%
Marvel Entertainment, Inc. *		56,031		1,897,770
Transportation - 0.39%
American Commercial Lines, Inc. *		53,725		661,355
Trucking & Freight - 2.81%
Forward Air Corp.		46,944		1,656,654
Hub Group, Inc., Class A *		44,606		1,781,563
Knight Transportation, Inc.		72,630		1,299,351
				4,737,568
TOTAL COMMON STOCKS (Cost $151,734,710)			$	161,771,907
SHORT TERM INVESTMENTS - 7.48%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	12,619,313	$	12,619,313
TOTAL SHORT TERM INVESTMENTS (Cost $12,619,313)			$	12,619,313
REPURCHASE AGREEMENTS - 4.18%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $7,050,331 on 09/02/2008, collateralized by $7,285,000 Federal Home Loan Bank, 5.7% due 04/03/2028 (valued at $7,193,938, including interest)	$	7,049,000	$	7,049,000
TOTAL REPURCHASE AGREEMENTS (Cost $7,049,000)			$	7,049,000
Total Investments (Small Company Growth Fund) (Cost $171,403,023) - 107.59%			$	181,440,220
Liabilities in Excess of Other Assets - (7.59)%				(12,802,136	)
TOTAL NET ASSETS - 100.00%			$	168,638,084

 

Small Company Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.03%
Aerospace - 2.10%
Kratos Defense & Security Solutions, Inc. *		445,100	$	903,553
Woodward Governor Company		231,200		10,711,496
				11,615,049
Air Travel - 0.54%
Alaska Air Group, Inc. *		141,000		2,962,410
Apparel & Textiles - 0.87%
Culp, Inc. *		89,400		659,772
G & K Services, Class A		120,400		4,152,596
				4,812,368

 

The accompanying notes are an integral part of the financial statements.

275

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Auto Parts - 0.05%
Accuride Corp. *		186,400	$	272,144
Auto Services - 0.12%
Dollar Thrifty Automotive Group, Inc. *		145,600		677,040
Banking - 4.04%
East West Bancorp, Inc. (a)		278,800		3,476,636
Glacier Bancorp, Inc.		198,700		4,236,284
Home Bancshares, Inc. (a)		138,516		3,328,539
SVB Financial Group *		152,500		8,547,625
Wintrust Financial Corp.		115,300		2,680,725
				22,269,809
Biotechnology - 1.29%
Exelixis, Inc. *		220,000		1,251,800
Myriad Genetics, Inc. *		86,200		5,878,840
				7,130,640
Broadcasting - 0.19%
Saga Communications, Inc., Class A *		170,100		1,069,929
Building Materials & Construction - 1.94%
Beacon Roofing Supply, Inc. * (a)		418,300		6,809,924
Drew Industries, Inc. *		180,800		2,898,224
Sterling Construction Company, Inc. *		54,200		999,990
				10,708,138
Business Services - 7.23%
Compass Diversified Trust		161,600		2,074,944
Electro Rent Corp.		220,900		3,008,658
FTI Consulting, Inc. *		135,200		9,923,680
McGrath Rentcorp		206,400		5,882,400
MPS Group, Inc. *		458,200		5,278,464
Navigant Consulting Company *		261,600		4,528,296
StarTek, Inc. *		194,112		1,754,772
SYNNEX Corp. *		117,500		2,701,325
Wind River Systems, Inc. *		431,600		4,769,180
				39,921,719
Chemicals - 3.38%
Airgas, Inc.		131,900		7,813,756
American Vanguard Corp. (a)		191,500		2,841,860
Arch Chemicals, Inc.		137,900		5,060,930
Innospec, Inc.		186,900		2,932,461
				18,649,007
Colleges & Universities - 0.56%
Corinthian Colleges, Inc. *		231,300		3,069,351
Commercial Services - 0.87%
Live Nation, Inc. *		60,600		972,630
Pool Corp. (a)		158,000		3,833,080
				4,805,710
Computers & Business Equipment - 1.39%
Ixia *		278,100		2,416,689
Palm, Inc. * (a)		368,700		3,137,637
Xyratex, Ltd. *		148,900		2,142,671
				7,696,997
Construction & Mining Equipment - 0.69%
Carbo Ceramics, Inc.		63,300		3,804,330

 

Small Company Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Construction Materials - 1.90%
Ameron International Corp.		62,100	$	7,257,006
Universal Forest Products, Inc.		98,900		3,248,865
				10,505,871
Crude Petroleum & Natural Gas - 4.98%
Forest Oil Corp. *		100,800		5,737,536
Penn Virginia Corp.		210,500		13,930,890
Whiting Petroleum Corp. *		81,300		7,824,312
				27,492,738
Domestic Oil - 0.76%
Mariner Energy, Inc. *		117,000		3,403,530
Union Drilling, Inc. *		57,019		810,810
				4,214,340
Drugs & Health Care - 1.68%
Landauer, Inc.		51,100		3,334,786
West Pharmaceutical Services, Inc.		121,700		5,940,177
				9,274,963
Electrical Equipment - 1.01%
C & D Technologies, Inc. * (a)		161,100		1,238,859
Littelfuse, Inc. *		106,200		3,767,976
Methode Electronics, Inc.		49,400		542,906
				5,549,741
Electrical Utilities - 2.63%
Black Hills Corp.		128,000		4,327,680
Cleco Corp.		176,400		4,447,044
El Paso Electric Company *		170,400		3,627,816
Empire District Electric Company (a)		99,700		2,103,670
				14,506,210
Electronics - 1.97%
Analogic Corp.		38,800		2,626,760
Belden, Inc.		147,300		5,411,802
Franklin Electric, Inc. (a)		38,100		1,649,730
Newport Corp. *		125,600		1,176,872
				10,865,164
Energy - 0.13%
GeoMet, Inc. *		100,800		703,584
Financial Services - 3.34%
Ares Capital Corp.		352,100		4,256,889
First Financial Fund, Inc. *		252,900		2,010,555
Hercules Technology Growth Capital, Inc.		239,800		2,496,318
JMP Group, Inc.		139,000		834,000
Kohlberg Capital Corp.		256,567		2,819,671
Piper Jaffray Companies, Inc. *		56,600		2,151,366
Stifel Financial Corp. *		93,900		3,837,693
				18,406,492
Food & Beverages - 0.55%
Nash Finch Company		74,100		3,017,352
Forest Products - 0.94%
Deltic Timber Corp.		84,300		5,165,061
Furniture & Fixtures - 0.18%
Stanley Furniture Company, Inc.		122,400		1,009,800

 

The accompanying notes are an integral part of the financial statements.

276

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Gas & Pipeline Utilities - 1.06%
Southwest Gas Corp.		117,600	$	3,569,160
Vectren Corp.		82,700		2,294,098
				5,863,258
Healthcare Products - 2.02%
AngioDynamics, Inc. *		110,000		1,807,300
Owens & Minor, Inc.		202,600		9,343,912
				11,151,212
Healthcare Services - 0.98%
National Healthcare Corp.		87,712		4,361,041
Triple-S Management Corp. * (a)		61,500		1,067,640
				5,428,681
Homebuilders - 1.11%
M/I Homes, Inc.		108,700		1,946,817
Meritage Homes Corp. *		178,100		4,171,102
				6,117,919
Hotels & Restaurants - 0.22%
The Steak & Shake Company * (a)		156,700		1,219,126
Industrial Machinery - 2.79%
Cascade Corp.		69,800		3,621,224
Circor International, Inc.		84,800		5,110,048
IDEX Corp.		179,025		6,636,457
				15,367,729
Insurance - 4.15%
Employers Holdings, Inc.		74,900		1,301,762
Markel Corp. *		9,100		3,367,000
Max Re Capital, Ltd.		191,400		4,976,400
National Interstate Corp.		138,800		2,696,884
ProAssurance Corp. *		166,600		8,979,740
Universal American Financial Corp. *		117,900		1,552,743
				22,874,529
Investment Companies - 0.67%
iShares Russell 2000 Value Index Fund		52,988		3,694,853
Life Sciences - 0.34%
Symyx Technologies, Inc. *		169,000		1,867,450
Manufacturing - 2.64%
AptarGroup, Inc.		191,100		7,718,529
Nordson Corp.		127,400		6,832,462
				14,550,991
Metal & Metal Products - 3.46%
Gibraltar Industries, Inc.		178,700		3,843,837
Matthews International Corp., Class A		166,700		8,378,342
Sims Group, Ltd.		235,300		6,889,584
				19,111,763
Mining - 0.48%
AMCOL International Corp.		72,600		2,646,996
Mobile Homes - 0.50%
Skyline Corp.		1,050		24,014
Winnebago Industries, Inc. (a)		241,000		2,735,350
				2,759,364
Paper - 1.49%
Chesapeake Corp. *		48,300		60,858

 

Small Company Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Paper (continued)
Potlatch Corp.		124,700	$	5,822,243
Wausau-Mosinee Paper Corp.		269,100		2,316,951
				8,200,052
Petroleum Services - 2.50%
Atwood Oceanics, Inc. *		59,600		2,423,336
Hercules Offshore, Inc. * (a)		84,692		1,869,153
Smith International, Inc.		38,113		2,656,476
TETRA Technologies, Inc. *		308,000		6,819,120
				13,768,085
Publishing - 0.09%
Lee Enterprises, Inc. (a)		127,800		479,250
Railroads & Equipment - 1.48%
Genesee & Wyoming, Inc., Class A *		190,100		8,176,201
Real Estate - 4.99%
Cedar Shopping Centers, Inc., REIT		51,400		673,340
First Potomac Realty Trust, REIT		186,100		3,091,121
Hatteras Financial Corp., REIT		121,300		3,002,175
Kilroy Realty Corp., REIT		127,600		6,386,380
LaSalle Hotel Properties, REIT		144,000		3,754,080
Parkway Properties, Inc., REIT		81,100		2,917,167
Redwood Trust, Inc., REIT (a)		100,000		1,875,000
Strategic Hotel & Resorts, Inc., REIT		202,700		1,868,894
Washington Real Estate Investment Trust, REIT		111,800		3,952,130
				27,520,287
Retail Grocery - 0.14%
Winn-Dixie Stores, Inc. *		55,000		776,600
Retail Trade - 4.79%
Aaron Rents, Inc., Class B		344,900		9,850,344
Casey’s General Stores, Inc.		120,400		3,491,600
CSS Industries, Inc.		103,400		2,755,610
Fred’s, Inc., Class A		180,500		2,530,610
Haverty Furniture Companies, Inc. (a)		221,400		2,444,256
Marinemax, Inc. * (a)		135,900		1,076,328
Stein Mart, Inc.		327,300		1,292,835
The Men’s Wearhouse, Inc.		135,900		2,976,210
				26,417,793
Sanitary Services - 1.87%
Casella Waste Systems, Inc., Class A *		69,200		921,052
Insituform Technologies, Inc., Class A *		216,300		3,971,268
Waste Connections, Inc. *		149,900		5,442,869
				10,335,189
Semiconductors - 2.89%
Advanced Energy Industries, Inc. *		219,400		3,538,922
ATMI, Inc. *		82,400		2,009,736
Brooks Automation, Inc. *		268,804		2,583,206
Cabot Microelectronics Corp. *		41,000		1,583,420
Exar Corp. *		243,300		1,883,142
FormFactor, Inc. *		137,900		2,646,301
GSI Group, Inc. *		339,900		1,699,500
				15,944,227
Software - 2.53%
Progress Software Corp. *		186,100		5,435,981

 

The accompanying notes are an integral part of the financial statements.

277

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Small Company Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software (continued)
SPSS, Inc. *		138,100	$	4,361,198
Websense, Inc. *		184,900		4,186,136
				13,983,315
Steel - 0.83%
Carpenter Technology Corp.		117,800		4,571,818
Telecommunications Equipment &
Services - 1.09%
Premiere Global Services, Inc. *		331,300		5,009,256
Sonus Networks, Inc. *		292,200		987,636
				5,996,892
Tires & Rubber - 0.67%
Myers Industries, Inc.		282,705		3,720,398
Tobacco - 0.31%
Alliance One International, Inc. *		432,000		1,736,640
Transportation - 2.39%
Kirby Corp. *		184,100		8,429,939
UTI Worldwide, Inc.		235,700		4,737,570
				13,167,509
Trucking & Freight - 2.22%
Landstar Systems, Inc.		250,300		12,269,706
TOTAL COMMON STOCKS (Cost $483,093,315)			$	529,893,790
PREFERRED STOCKS - 0.29%
Banking - 0.29%
East West Bancorp., Inc., Series A, 8.00%		1,975		1,603,676
TOTAL PREFERRED STOCKS (Cost $1,954,507)			$	1,603,676
SHORT TERM INVESTMENTS - 9.12%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	31,096,975	$	31,096,975
T. Rowe Price Reserve Investment Fund, 2.7528%		19,217,993		19,217,993
TOTAL SHORT TERM INVESTMENTS (Cost $50,314,968)			$	50,314,968
REPURCHASE AGREEMENTS - 0.39%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $2,130,402 on 09/02/2008, collateralized by $2,195,000 Federal Home Loan Mortgage Corp., zero coupon due 01/06/2009 (valued at $2,173,050, including interest)	$	2,130,000	$	2,130,000
TOTAL REPURCHASE AGREEMENTS (Cost $2,130,000)			$	2,130,000
Total Investments (Small Company Value Fund) (Cost $537,492,790) - 105.83%			$	583,942,434
Liabilities in Excess of Other Assets - (5.83)%				(32,156,796	)
TOTAL NET ASSETS - 100.00%			$	551,785,638

 

Spectrum Income Fund
	Shares or Principal Amount			Value
COMMON STOCKS - 16.41%
Advertising - 0.02%
WPP Group PLC		18,000		$	175,202
Aerospace - 0.03%
Boeing Company		4,600			301,576
Air Travel - 0.06%
Southwest Airlines Company		40,300			613,769
Aluminum - 0.13%
Alcoa, Inc.		42,700			1,371,951
Auto Parts - 0.10%
Genuine Parts Company		23,900			1,013,838
Automobiles - 0.03%
Ford Motor Company *		78,600			350,556
Banking - 0.92%
Allied Irish Banks PLC - London Exchange		69,625			880,986
Bank of America Corp.		61,114			1,903,090
Fifth Third Bancorp		68,900			1,087,242
KeyCorp		67,000			804,670
National City Corp. (a)		78,900			397,656
Royal Bank of Scotland Group PLC		73,567			312,886
SunTrust Banks, Inc.		45,900			1,922,751
U.S. Bancorp		78,100			2,488,266
					9,797,547
Biotechnology - 0.22%
Amgen, Inc. *		36,700			2,306,595
Broadcasting - 0.09%
CBS Corp., Class B		55,150			892,327
Sirius XM Radio, Inc. * (a)		48,530			64,545
					956,872
Building Materials & Construction - 0.13%
Masco Corp.		75,400			1,437,124
Business Services - 0.27%
Computer Sciences Corp. *		26,300			1,236,889
H & R Block, Inc.		62,800			1,603,912
					2,840,801
Cable & Television - 0.30%
Cablevision Systems Corp., Class A		32,200			1,039,094
Time Warner, Inc.		134,400			2,200,128
					3,239,222
Cellular Communications - 0.11%
Crown Castle International Corp. *		8,725			326,315
Motorola, Inc.		84,800			798,816
					1,125,131
Chemicals - 0.16%
E.I. Du Pont de Nemours & Company		39,100	��		1,737,604
Computers & Business Equipment - 0.14%
Dell, Inc. *		69,600			1,512,408
Construction Materials - 0.22%
USG Corp. * (a)		29,000			805,040
Vulcan Materials Company (a)		20,700			1,549,188
					2,354,228

 

The accompanying notes are an integral part of the financial statements.

278

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Cosmetics & Toiletries - 0.47%
Colgate-Palmolive Company		11,500	$	874,345
International Flavors & Fragrances, Inc.		36,600		1,471,686
Kimberly-Clark Corp.		19,300		1,190,424
Procter & Gamble Company		21,800		1,520,986
				5,057,441
Crude Petroleum & Natural Gas - 0.12%
Sunoco, Inc.		29,500		1,309,210
Drugs & Health Care - 0.16%
Wyeth		40,200		1,739,856
Electrical Equipment - 0.12%
Cooper Industries, Ltd., Class A		20,600		981,384
General Cable Corp. *		6,650		327,313
				1,308,697
Electrical Utilities - 0.54%
Entergy Corp.		10,900		1,126,951
FirstEnergy Corp.		17,500		1,271,200
PG&E Corp.		23,000		950,590
Pinnacle West Capital Corp.		21,100		742,509
Teco Energy, Inc.		18,200		324,688
Xcel Energy, Inc.		63,870		1,309,974
				5,725,912
Electronics - 0.05%
Harman International Industries, Inc.		15,700		534,271
Energy - 0.25%
Duke Energy Corp.		71,590		1,248,529
Progress Energy, Inc.		31,250		1,365,000
				2,613,529
Financial Services - 1.94%
American Express Company		36,000		1,428,480
Bank of New York Mellon Corp.		54,600		1,889,706
Capital One Financial Corp.		33,100		1,461,034
Citigroup, Inc.		50,800		964,692
Federal National Mortgage Association		79,900		546,516
JP Morgan Chase & Company		119,500		4,599,555
Legg Mason, Inc.		27,600		1,229,028
Merrill Lynch & Company, Inc.		90,900		2,577,015
Merrill Lynch & Company, Inc. *		39,734		1,013,808
SLM Corp. *		81,000		1,337,310
UBS AG *		45,751		994,448
Wells Fargo & Company		87,200		2,639,544
				20,681,136
Food & Beverages - 0.63%
B&G Foods, Inc. (a)		16,100		255,990
General Mills, Inc.		30,300		2,005,254
Hershey Company		63,300		2,284,497
Kraft Foods, Inc., Class A		43,600		1,373,836
McCormick & Company, Inc.		18,400		744,280
				6,663,857
Gas & Pipeline Utilities - 0.21%
NiSource, Inc.		78,700		1,296,976
Spectra Energy Corp.		36,600		968,436

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Gas & Pipeline Utilities (continued)
Williams Companies, Inc.		270	$	8,340
				2,273,752
Healthcare Products - 0.24%
Johnson & Johnson		36,900		2,598,867
Healthcare Services - 0.08%
WellPoint, Inc. *		15,900		839,361
Holdings Companies/Conglomerates - 0.54%
General Electric Company		206,000		5,788,600
Homebuilders - 0.07%
D.R. Horton, Inc.		57,800		720,188
Household Appliances - 0.20%
Black & Decker Corp.		9,000		569,250
Whirlpool Corp.		19,300		1,570,248
				2,139,498
Household Products - 0.28%
Fortune Brands, Inc.		31,500		1,852,830
Newell Rubbermaid, Inc.		64,300		1,163,830
				3,016,660
Insurance - 0.82%
American International Group, Inc.		64,300		1,381,807
Chubb Corp.		13,400		643,334
Lincoln National Corp.		35,400		1,796,904
Marsh & McLennan Companies, Inc.		96,000		3,065,280
Progressive Corp.		43,900		810,833
The Travelers Companies, Inc.		22,400		989,184
				8,687,342
International Oil - 1.58%
Anadarko Petroleum Corp.		27,000		1,666,710
BP PLC, SADR		27,400		1,579,062
Chevron Corp.		51,500		4,445,480
Exxon Mobil Corp.		53,700		4,296,537
Murphy Oil Corp.		22,400		1,759,072
Royal Dutch Shell PLC, ADR		44,600		3,100,592
				16,847,453
Internet Content - 0.12%
Yahoo!, Inc. *		64,300		1,246,134
Internet Retail - 0.09%
eBay, Inc. *		36,400		907,452
Leisure Time - 0.32%
Lakes Gaming, Inc. *		22,900		150,224
MGM Mirage, Inc. * (a)		45,900		1,615,221
Walt Disney Company		52,300		1,691,905
				3,457,350
Manufacturing - 0.65%
3M Company		33,600		2,405,760
Harley-Davidson, Inc.		29,900		1,189,422
Honeywell International, Inc.		27,600		1,384,692
Illinois Tool Works, Inc.		39,300		1,949,673
				6,929,547
Office Furnishings & Supplies - 0.16%
Avery Dennison Corp.		34,800		1,678,752

 

The accompanying notes are an integral part of the financial statements.

279

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Paper - 0.34%
International Paper Company		92,270	$	2,495,903
MeadWestvaco Corp.		43,520		1,152,410
				3,648,313
Petroleum Services - 0.16%
BJ Services Company		36,600		982,710
Schlumberger, Ltd.		7,200		678,384
				1,661,094
Pharmaceuticals - 0.82%
Abbott Laboratories		22,100		1,269,203
Bristol-Myers Squibb Company		59,400		1,267,596
Eli Lilly & Company		51,200		2,388,480
Merck & Company, Inc.		52,400		1,869,108
Pfizer, Inc.		102,415		1,957,151
				8,751,538
Photography - 0.09%
Eastman Kodak Company		57,900		937,401
Publishing - 0.37%
Gannett Company, Inc.		55,100		980,229
McGraw-Hill Companies, Inc.		48,100		2,060,604
The New York Times Company, Class A		69,800		906,702
				3,947,535
Real Estate - 0.00%
Weingarten Realty Investors, REIT		1,271		42,006
Retail Grocery - 0.03%
Whole Foods Market, Inc. (a)		17,300		316,763
Retail Trade - 0.42%
Bed Bath & Beyond, Inc. *		54,500		1,670,970
Home Depot, Inc.		87,300		2,367,576
Macy’s, Inc.		23,100		480,942
				4,519,488
Semiconductors - 0.28%
Analog Devices, Inc.		45,900		1,283,364
Applied Materials, Inc.		36,800		659,456
Intel Corp.		45,700		1,045,159
				2,987,979
Software - 0.24%
Microsoft Corp.		91,800		2,505,222
Telecommunications Equipment &
Services - 0.08%
Alcatel-Lucent, SADR *		134,400		830,592
Telephone - 0.69%
AT&T, Inc.		109,820		3,513,142
Qwest Communications International, Inc. (a)		211,300		798,714
Sprint Nextel Corp.		159,350		1,389,532
Verizon Communications, Inc.		45,600		1,601,472
				7,302,860
Tobacco - 0.08%
UST, Inc.		16,220		869,230
Toys, Amusements & Sporting Goods - 0.10%
Mattel, Inc.		57,400		1,109,542

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Trucking & Freight - 0.14%
United Parcel Service, Inc., Class B		22,800	$	1,461,936
TOTAL COMMON STOCKS (Cost $191,743,281)			$	174,790,788
PREFERRED STOCKS - 0.31%
Banking - 0.07%
Bank of America Corp., Series L, 7.25% *		550		502,700
National City Corp., Series 1, 6.00% *		3		302,400
				805,100
Broadcasting - 0.02%
Spanish Broadcasting System, Series
B, 10.75% *		300		189,000
Financial Services - 0.13%
Citigroup, Inc., Series T, 6.50% *		16,550		705,361
Federal Home Loan Mortgage Corp., Series Z, 8.375% *		7,400		103,970
Federal National Mortgage Association, Series 08-1, 8.75% *		26,100		447,615
Federal National Mortgage Association, Series S, 8.25% *		6,125		87,894
				1,344,840
Telecommunications Equipment &
Services - 0.09%
Lucent Technologies Capital Trust I, 7.75% *		1,400		953,400
TOTAL PREFERRED STOCKS (Cost $4,633,707)			$	3,292,340
TERM LOANS - 1.54%
Auto Parts - 0.05%
Goodyear Tire & Rubber Company
4.54% due 04/30/2014 (b)		250,000		218,750
Rental Service Corp., Series B3
8.86% due 11/27/2013 (b)		397,920		321,321
				540,071
Business Services - 0.09%
First Data Corp.
3.34% due 09/24/2014 (b)		992,500		909,269
Cable & Television - 0.06%
Mediacom Broadband LLC
1.00% due 01/31/2015 (b)		500,000		461,250
Univision Communications, Inc.
1.00% due 09/29/2014 (b)		250,000		200,750
				662,000
Cellular Communications - 0.12%
Alltel Communications, Inc.
1.00% due 05/15/2015 (b)		1,246,859		1,232,146
Chemicals - 0.02%
Celanese Holdings LLC
1.00% due 03/30/2014 (b)		249,369		234,940
Commercial Services - 0.04%
Aramark Corp., Tranche B
7.485% due 01/26/2017 (b)		440,892		418,173
Computers & Business Equipment - 0.06%
Palm, Inc.
8.3775% due 04/24/2014 (b)		995,000		669,138

 

The accompanying notes are an integral part of the financial statements.

280

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Educational Services - 0.06%
Laureate Education, Inc.
3.81% due 08/17/2014 (b)(l)	$	250,000	$	231,667
7.00% due 08/17/2014 (b)(l)		496,187		459,802
				691,469
Electrical Utilities - 0.09%
Calpine Corp.
5.725% due 03/29/2014 (b)		997,494		925,455
Energy - 0.13%
Dresser, Inc.
8.56% due 06/30/2009 (b)		1,250,000		1,191,875
Mirant North America LLC
4.1313% due 01/03/2013		249,209		239,475
				1,431,350
Financial Services - 0.09%
Nuveen Investments, Inc.
1.00% due 11/09/2014		249,375		230,225
Pinnacle Foods Finance LLC
9.25% due 04/01/2015 (b)		748,111		679,846
				910,071
Food & Beverages - 0.04%
Outback, Series B
7.6066% due 05/09/2014 (b)		489,416		378,837
Gas & Pipeline Utilities - 0.04%
Venoco, Inc., 2nd Lien
9.356% due 05/08/2014 (b)		500,000		473,750
Healthcare Services - 0.09%
Healthsouth Corp.
10.00% due 06/10/2013 (b)		238,445		224,649
Iasis Healthcare Corp.
5.25% due 03/15/2014 (b)		249,561		215,870
10.605% due 06/16/2011 (b)		549,731		475,517
				916,036
Insurance - 0.02%
HUB International Holdings, Inc.
1.00% due 06/13/2014 (b)(l)		249,396		225,703
Leisure Time - 0.04%
Las Vegas Sands LLC
1.00% due 05/23/2014 (b)		249,476		212,443
Town Sports
7.125% due 03/01/2014 (b)		246,875		209,844
				422,287
Medical-Hospitals - 0.15%
Community Health Systems, Inc.
1.00% due 07/25/2014 (b)(l)		250,000		236,180
HCA, Inc.
4.45% due 11/18/2012 (b)		747,334		700,394
7.08% due 11/18/2012 (b)		728,587		680,733
				1,617,307
Paper - 0.04%
Domtar Corp.
3.7794% due 03/07/2014		240,250		230,219

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Paper (continued)
Georgia-Pacific Corp.
4.7274% due 12/20/2012 (b)	$	239,806	$	226,442
				456,661
Publishing - 0.06%
Nielsen Finance LLC
4.7344% due 08/09/2013 (b)		498,732		459,611
Penton Media Bank, Series B1
7.61% due 02/01/2013 (b)		246,875		187,317
				646,928
Software - 0.03%
Infor Global Solutions
1.00% due 03/15/2014 (b)		500,000		307,500
Telecommunications Equipment &
Services - 0.11%
Telesat Canada
8.09% due 11/15/2014 (b)(l)		247,708		237,104
Trilogy International Partners
8.86% due 06/27/2012 (b)		500,000		420,000
Wind Acquisition Finance SA, Series B
3.40% due 12/07/2011 (b)		600,522		562,990
				1,220,094
Utility Service - 0.11%
Texas Competitive Electric LLC
1.00% due 10/10/2014 (b)		1,246,866		1,158,026
TOTAL TERM LOANS (Cost $17,211,641)			$	16,447,211
U.S. TREASURY OBLIGATIONS - 5.18%
Treasury Inflation Protected
Securities (d) - 0.69%
1.375% due 07/15/2018		2,591,792		2,526,189
1.875% due 07/15/2013		136,965		141,502
2.00% due 04/15/2012 to 01/15/2016		4,471,805		4,635,204
				7,302,895
U.S. Treasury Bonds - 2.94%
4.375% due 02/15/2038		275,000		273,045
4.50% due 02/15/2036		317,000		320,170
4.75% due 02/15/2037		7,435,000		7,813,724
5.375% due 02/15/2031		335,000		377,870
5.50% due 08/15/2028		2,542,000		2,883,978
6.00% due 02/15/2026		2,010,000		2,390,801
6.125% due 08/15/2029		2,792,000		3,416,492
6.25% due 05/15/2030		638,000		795,805
6.375% due 08/15/2027		2,700,000		3,361,500
7.125% due 02/15/2023		2,831,000		3,671,674
7.25% due 08/15/2022		1,980,000		2,583,591
8.875% due 02/15/2019		2,420,000		3,408,040
				31,296,690
U.S. Treasury Notes - 1.48%
2.875% due 01/31/2013		3,000,000		2,989,452
4.25% due 11/15/2014 ****		5,555,000		5,880,056
4.50% due 02/15/2009 to 11/15/2010		2,545,000		2,585,861
4.75% due 08/15/2017		3,915,000		4,217,191
4.875% due 06/30/2012		140,000		150,161
				15,822,721

 

The accompanying notes are an integral part of the financial statements.

281

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS
(continued)
U.S. Treasury Strips - 0.07%
zero coupon due 05/15/2020	$	1,250,000	$	746,052
TOTAL U.S. TREASURY OBLIGATIONS (Cost $53,716,350)			$	55,168,358
U.S. GOVERNMENT AGENCY OBLIGATIONS - 25.64%
Federal Home Loan Bank - 0.22%
5.125% due 08/14/2013		930,000		976,304
5.25% due 06/18/2014		590,000		622,763
5.803% due 10/01/2037 (b)		728,158		741,375
				2,340,442
Federal Home Loan Mortgage Corp. - 3.38%
4.125% due 10/18/2010		1,750,000		1,782,515
4.452% due 07/01/2035 (b)		43,039		43,094
4.50% due 11/01/2018 to 04/01/2023		3,961,072		3,848,762
4.619% due 06/01/2038 (b)		224,689		221,208
4.638% due 07/01/2035 (b)		118,770		118,831
4.694% due 02/01/2035 (b)		187,624		189,453
4.766% due 07/01/2038 (b)		500,000		494,513
5.00% due 01/01/2009 to 11/01/2035		4,706,805		4,575,077
5.00% due 06/01/2023 (j)		1,975,507		1,957,372
5.053% due 03/01/2036 (b)		522,301		522,064
5.067% due 11/01/2035 (b)		205,651		205,677
5.125% due 07/15/2012		1,960,000		2,047,742
5.133% due 01/01/2036 (b)		1,293,072		1,303,888
5.15% due 09/01/2035 (b)		157,952		158,236
5.322% due 02/01/2037 (b)		1,541,755		1,558,515
5.346% due 04/01/2037 (b)		599,365		605,651
5.362% due 02/01/2037 to 05/01/2037 (b)		725,214		733,991
5.374% due 01/01/2036 (b)		98,835		99,536
5.413% due 02/01/2038 (b)		444,470		449,562
5.456% due 02/01/2037 (b)		950,910		964,682
5.491% due 06/01/2037 (b)		761,464		772,167
5.50% due 03/01/2018 to 04/01/2029		1,220,083		1,241,720
5.508% due 10/01/2036 (b)		591,465		600,002
5.913% due 02/01/2037 (b)		1,114,726		1,136,755
5.93% due 01/01/2037 (b)		246,951		252,097
5.978% due 12/01/2036 (b)		635,268		643,302
5.99% due 11/01/2036 (b)		605,666		613,596
6.00% due 06/15/2011 to 10/01/2036		3,480,480		3,605,883
6.00% due 08/01/2038 (j)		2,046,000		2,064,608
6.028% due 10/01/2036 (b)		860,072		870,696
6.122% due 10/01/2036 (b)		697,312		707,866
6.206% due 08/01/2036 (b)		846,794		862,076
6.50% due 05/01/2017 to 01/01/2036		628,037		649,264
7.00% due 02/01/2024 to 06/01/2032		43,959		46,376
7.213% due 09/01/2032 (b)		6,938		6,935
7.50% due 05/01/2024 to 06/01/2024		4,946		5,290
10.50% due 05/01/2019		275		306
				35,959,308
Federal National Mortgage
Association - 9.68%
3.811% due 10/01/2033		133,473		134,161
4.367% due 07/01/2027		1,637		1,635
4.375% due 09/15/2012 to 10/15/2015		1,235,000		1,241,925
4.50% due 05/01/2019 to 09/01/2035		5,204,937		5,061,684
4.58% due 07/01/2035 (b)		147,454		147,812

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal National Mortgage
Association (continued)
4.625% due 10/15/2014	$	780,000	$	794,449
4.791% due 09/01/2035 (b)		518,377		516,307
4.824% due 11/01/2035 to 04/01/2038 (b)		434,369		435,821
4.855% due 05/01/2038 (b)		590,546		588,731
4.875% due 12/15/2016		350,000		357,641
4.875% due 05/01/2038 (b)		399,764		398,983
4.899% due 08/01/2038 (b)		499,342		497,417
5.00% due 01/01/2009 to 03/01/2038		17,193,316		16,929,774
5.00% TBA ** (j)		4,475,000		4,298,447
5.311% due 12/01/2035 (b)		186,832		188,614
5.3155% due 02/17/2009 (b)		260,000		260,000
5.33% due 12/01/2035		225,630		227,904
5.425% due 09/01/2037 (b)		480,978		488,184
5.463% due 06/01/2037 (b)		139,249		141,555
5.487% due 01/01/2019 (b)		1,043		1,058
5.50% due 07/01/2013 to 08/01/2037		29,697,651		29,597,097
5.50% TBA **		1,335,000		1,317,895
5.539% due 12/01/2035 to 01/01/2037 (b)		1,800,339		1,831,644
5.655% due 12/01/2035 (b)		91,389		92,816
5.792% due 11/01/2037 (b)		704,785		719,435
5.802% due 08/01/2037 (b)		533,364		544,957
5.978% due 08/01/2036 to 09/01/2036 (b)		1,025,733		1,048,438
6.00% due 05/15/2011 to 04/01/2038		18,985,051		19,338,604
6.00% due 08/01/2038 to 09/01/2038 (j)		105,000		106,251
6.00% TBA **		3,893,000		3,930,713
6.037% due 12/01/2036		507,811		520,221
6.50% due 06/01/2013 to 11/01/2037		8,041,375		8,300,222
6.50% TBA **		900,000		925,594
7.00% due 12/01/2029 to 04/01/2037		87,956		92,066
7.125% due 06/15/2010 to 01/15/2030		1,840,000		2,051,838
				103,129,893
Government National Mortgage
Association - 12.36%
4.00% due 09/15/2018		563,150		531,033
4.50% due 09/15/2018 to 05/20/2036		5,297,375		4,971,941
5.00% due 02/15/2018 to 06/15/2038		24,136,756		23,667,568
5.50% due 02/15/2029 to 07/15/2037		30,915,844		30,962,204
5.50% TBA **		19,552,000		19,382,038
6.00% due 11/15/2008 to 06/15/2038		26,005,699		26,496,080
6.00% TBA **		9,159,220		9,260,831
6.50% due 07/15/2009 to 03/15/2038		8,443,870		8,840,892
6.50% TBA **		4,880,035		5,026,055
7.00% due 04/15/2017 to 10/20/2036		2,417,106		2,541,312
9.25% due 10/15/2016 to 12/15/2019		4,550		5,038
9.50% due 08/15/2009 to 10/15/2009		1,029		1,056
9.75% due 07/15/2017 to 02/15/2021		4,137		4,682
10.25% due 05/15/2020 to 11/15/2020		4,497		5,217
11.75% due 08/15/2013		1,302		1,474
12.00% due 10/15/2010 to 01/15/2013		896		997
12.25% due 03/15/2014 to 07/20/2015		1,217		1,420
12.50% due 06/15/2010		2,046		2,180
12.75% due 12/20/2013 to 11/20/2014		969		1,136
				131,703,154
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $269,857,003)			$	273,132,797

 

The accompanying notes are an integral part of the financial statements.

282

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS - 11.98%
Argentina - 0.10%
Republic of Argentina
7.00% due 10/03/2015		$	1,005,000	$	647,722
7.00% due 04/17/2017			265,000		185,500
7.875% due 04/11/2011			300,000		276,750
					1,109,972
Austria - 0.17%
Republic of Austria
5.50% due 01/15/2010	EUR		1,188,000		1,770,584
6.25% due 07/15/2027			49,000		85,472
					1,856,056
Belgium - 0.16%
Kingdom of Belgium
3.00% due 03/28/2010			540,000		777,330
4.25% due 09/28/2013			197,000		287,682
5.00% due 03/28/2035			447,000		672,690
					1,737,702
Brazil - 1.25%
Federative Republic of Brazil
6.00% due 01/17/2017		$	330,000		337,425
6.00% due 05/15/2015	BRL		320,000		317,792
7.125% due 01/20/2037		$	1,800,000		2,004,300
8.75% due 02/04/2025			475,000		593,750
8.875% due 10/14/2019			500,000		620,500
10.00% due 01/01/2012	BRL		2,450,000		1,376,649
10.00% due 01/01/2014			5,314,000		2,877,515
10.00% due 01/01/2010			2,337,000		1,379,412
10.00% due 01/01/2017			7,234,000		3,757,775
					13,265,118
Canada - 0.15%
Government of Canada
5.75% due 06/01/2033	CAD		465,000		554,037
Province of Ontario
5.00% due 03/08/2014			1,045,000		1,043,425
					1,597,462
Colombia - 0.07%
Republic of Colombia
7.375% due 01/27/2017		$	200,000		220,000
7.375% due 09/18/2037			200,000		219,200
7.375% due 09/18/2037			250,000		274,375
12.00% due 10/22/2015	COP		40,000,000		21,945
					735,520
Denmark - 0.07%
Kingdom of Denmark
5.00% due 11/15/2013	DKK		3,277,000		663,322
7.00% due 11/10/2024			364,000		89,794
					753,116
Ecuador - 0.04%
Republic of Ecuador
10.00% due 08/15/2030		$	425,000		376,125
Egypt - 0.01%
Republic of Egypt
zero coupon due 10/21/2008	EGP		625,000		114,360

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
France - 1.23%
Government of France
3.75% due 01/12/2012	EUR		1,145,000	$	1,656,508
4.25% due 10/25/2017			5,475,000		7,978,927
4.75% due 10/25/2012			167,000		249,694
5.00% due 10/25/2016			300,000		460,360
5.50% due 04/25/2029			312,000		505,107
5.75% due 10/25/2032			1,345,000		2,261,050
					13,111,646
Gabon - 0.05%
Republic of Gabon
8.20% due 12/12/2017		$	500,000		520,505
Germany - 0.66%
Federal Republic of Germany
3.75% due 01/04/2017	EUR		100,000		142,524
4.00% due 01/04/2037			943,000		1,257,564
4.25% due 07/04/2017			95,000		140,277
4.25% due 01/04/2014			320,000		473,376
4.50% due 01/04/2013			250,000		372,202
4.75% due 07/04/2028			114,000		170,058
4.75% due 07/04/2034			898,000		1,342,758
5.00% due 01/04/2012			1,075,000		1,620,338
5.25% due 01/04/2011			770,000		1,159,225
5.50% due 01/04/2031			185,000		302,757
					6,981,079
Ghana - 0.07%
Republic of Ghana
8.50% due 10/04/2017		$	700,000		695,800
Greece - 0.10%
Republic of Greece
5.25% due 05/18/2012	EUR		720,000		1,079,704
Grenada - 0.01%
Government of Grenada
1 due 09/15/2025		$	230,000		158,700
Hungary - 0.40%
Republic of Hungary
5.50% due 02/12/2014	HUF		198,710,000		1,089,396
6.75% due 02/24/2017			134,430,000		774,139
7.25% due 06/12/2012			397,510,000		2,356,765
					4,220,300
Indonesia - 0.20%
Republic of Indonesia
6.625% due 02/17/2037		$	600,000		525,750
6.75% due 03/10/2014			100,000		100,750
6.875% due 03/09/2017			342,000		342,000
6.875% due 01/17/2018			600,000		603,252
7.75% due 01/17/2038			300,000		297,000
9.00% due 09/15/2018	IDR		1,720,000,000		153,948
10.00% due 07/15/2017			1,682,000,000		162,340
					2,185,040
Iraq - 0.15%
Republic of Iraq
5.80% due 01/15/2028		$	2,250,000		1,650,825

 

The accompanying notes are an integral part of the financial statements.

283

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
			Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Ireland - 0.01%
Republic of Ireland
4.00% due 04/18/2010	EUR			96,000	$	139,673
Italy - 0.78%
Republic of Italy
4.00% due 02/01/2037				1,370,000		1,684,644
4.25% due 08/01/2014				1,302,000		1,885,688
5.25% due 09/20/2016			$	450,000		475,232
5.25% due 08/01/2017	EUR			1,130,000		1,729,647
5.50% due 11/01/2010				1,570,000		2,355,115
7.25% due 11/01/2026				75,000		139,087
						8,269,413
Jamaica - 0.07%
Government of Jamaica
9.00% due 06/02/2015			$	215,000		225,212
10.625% due 06/20/2017				450,000		515,250
						740,462
Japan - 2.93%
Government of Japan
1.00% due 12/20/2012	JPY			188,500,000		1,736,746
1.00% due 06/10/2016				141,036,000		1,280,437
1.10% due 12/10/2016				330,585,500		3,011,343
1.10% due 09/10/2016				182,144,700		1,661,689
1.30% due 12/20/2013				682,450,000		6,370,255
1.30% due 03/20/2015				102,800,000		960,265
1.40% due 03/21/2011				31,400,000		293,115
1.40% due 03/20/2012				188,400,000		1,762,882
1.40% due 03/20/2018				135,650,000		1,248,601
1.40% due 03/10/2018				133,320,000		1,234,764
1.50% due 06/20/2012				461,750,000		4,338,286
1.70% due 09/20/2016				306,400,000		2,935,339
2.00% due 06/20/2022				55,200,000		521,274
2.00% due 12/20/2033				152,000,000		1,316,576
2.20% due 06/22/2020				32,050,000		312,477
2.30% due 06/20/2028				18,850,000		179,239
3.75% due 03/20/2025				223,700,000		2,047,334
						31,210,622
Lebanon - 0.02%
Government of Lebanon
8.50% due 08/06/2015			$	250,000		249,850
Malaysia - 0.04%
Government of Malaysia
3.702% due 02/25/2013	MYR			805,000		233,518
3.70% due 05/15/2013				500,000		144,791
						378,309
Mexico - 1.15%
Government of Mexico		��
3.50% due 12/14/2017	MXN			3,542,549		335,246
5.625% due 01/15/2017			$	270,000		272,565
5.625% due 01/15/2017				250,000		252,500
7.50% due 06/03/2027	MXN			7,000,000		616,394
7.75% due 12/14/2017				42,925,000		3,981,189
8.00% due 12/24/2008				5,350,000		519,529
8.00% due 12/17/2015				37,490,000		3,554,400
8.00% due 12/19/2013				9,350,000		891,731
8.125% due 12/30/2019			$	65,000		77,935

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Mexico (continued)
Government of Mexico (continued)
9.00% due 12/20/2012	MXN		4,585,000	$	455,069
9.00% due 12/24/2009			6,755,000		661,800
9.50% due 12/18/2014			3,190,000		325,988
10.00% due 11/20/2036			3,000,000		338,057
					12,282,403
Netherlands - 0.35%
Kingdom of Netherlands
4.50% due 07/15/2017	EUR		540,000		801,040
5.00% due 07/15/2011			1,783,000		2,673,323
5.50% due 01/15/2028			137,000		221,370
					3,695,733
Pakistan - 0.01%
Republic of pakistan
6.875% due 06/01/2017		$	200,000		130,000
Panama - 0.01%
Republic of Panama
6.70% due 01/26/2036			135,000		137,903
Philippines - 0.06%
Republic of Philippines
7.75% due 01/14/2031			425,000		465,375
10.625% due 03/16/2025			155,000		210,994
					676,369
Poland - 0.05%
Republic of Poland
5.25% due 10/25/2017	PLN		397,000		165,140
6.25% due 10/24/2015			765,000		339,472
					504,612
Portugal - 0.02%
Republic of Portugal
5.15% due 06/15/2011	EUR		118,000		176,379
Russia - 0.15%
Government of Russia
7.50% due 03/31/2030		$	1,398,700		1,561,495
Serbia - 0.13%
Republic of Serbia
3.75 due 11/01/2024			1,450,000		1,348,500
South Africa - 0.13%
Republic of South Africa
5.875% due 05/30/2022			300,000		280,875
6.50% due 06/02/2014			585,000		601,087
8.00% due 12/21/2018	ZAR		1,060,000		127,517
13.50% due 09/15/2015			2,650,000		420,086
					1,429,565
Spain - 0.07%
Kingdom of Spain
4.00% due 01/31/2010	EUR		46,000		67,151
5.75% due 07/30/2032			380,000		626,768
					693,919
Sri Lanka - 0.01%
Republic of Sri Lanka
8.25% due 10/24/2012		$	100,000		91,348

 

The accompanying notes are an integral part of the financial statements.

284

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
			Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Sweden - 0.17%
Kingdom of Sweden
3.75% due 08/12/2017		SEK		1,660,000	$	250,877
5.125% due 03/01/2017			$	425,000		440,417
5.25% due 03/15/2011		SEK		6,805,000		1,077,605
						1,768,899
Turkey - 0.42%
Republic of Turkey
6.875% due 03/17/2036			$	785,000		731,031
7.00% due 06/05/2020				378,000		377,528
7.375% due 02/05/2025				40,000		40,350
8.00% due 02/14/2034				250,000		264,375
8.00% due 02/14/2034				187,000		198,687
10.00% due 02/15/2012		TRY		825,000		682,857
14.00% due 01/19/2011				589,961		456,938
14.00% due 09/26/2012				1,095,000		820,372
16.00% due 03/07/2012				1,110,000		890,174
						4,462,312
United Kingdom - 0.43%
Government of United Kingdom
4.25% due 06/07/2032		GBP		2,040,000		3,550,164
4.75% due 06/07/2010				570,000		1,043,254
						4,593,418
Venezuela - 0.05%
Republic of Venezuela
7.00% due 03/31/2038			$	850,000		579,530
Vietnam - 0.03%
Socialist Republic of Vietnam
6.875% due 01/15/2016				349,000		342,166
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $125,193,943)					$	127,611,910
CORPORATE BONDS - 28.21%
Advertising - 0.14%
Lamar Media Corp.
6.625% due 08/15/2015				800,000		710,000
Lamar Media Corp., Series C
6.625% due 08/15/2015				225,000		199,406
R.H. Donnelley Corp.
8.875% due 10/15/2017				275,000		141,625
R.H. Donnelley Corp., Series A-2
6.875% due 01/15/2013	��			575,000		316,250
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016				150,000		78,750
						1,446,031
Aerospace - 0.35%
BE Aerospace, Inc.
8.00% due 06/09/2014				250,000		251,250
8.50% due 07/01/2018				350,000		364,875
GenCorp, Inc.
9.50% due 08/15/2013				750,000		738,750
Lockheed Martin Corp.
4.121% due 03/14/2013				440,000		432,263
Northrop Grumman Corp.
7.125% due 02/15/2011				780,000		826,295

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Aerospace (continued)
Northrop Grumman Corp. (continued)
7.75% due 03/01/2016		$	35,000	$	39,481
Rolls-Royce Group PLC, EMTN
4.50% due 03/16/2011	EUR		53,000		76,336
TransDigm, Inc.
7.75% due 07/15/2014		$	475,000		461,938
United Technologies Corp.
5.375% due 12/15/2017			110,000		110,533
5.40% due 05/01/2035			110,000		102,091
6.35% due 03/01/2011			345,000		364,214
					3,768,026
Agriculture - 0.07%
Bunge, Ltd.
4.375% due 12/15/2008			310,000		310,331
5.90% due 04/01/2017			460,000		407,493
					717,824
Air Travel - 0.04%
Air Jamaica, Ltd.
9.375% due 07/08/2015			75,000		77,074
Delta Air Lines, Inc.
6.821% due 08/10/2022			130,891		107,985
Greater Toronto Airports Authority, MTN
6.25% due 12/13/2012	CAD		47,000		47,747
6.47% due 02/02/2034			40,000		40,251
Southwest Airlines Company
6.50% due 03/01/2012		$	160,000		159,888
					432,945
Aluminum - 0.03%
Novelis, Inc.
7.25% due 02/15/2015			325,000		301,438
Apparel & Textiles - 0.01%
Polo Ralph Lauren Corp.
4.50% due 10/04/2013	EUR		50,000		67,448
Auto Parts - 0.21%
Allison Transmission, Inc.
11.25% due 11/01/2015 (h)		$	800,000		712,000
Commercial Vehicle Group, Inc.
8.00% due 07/01/2013			375,000		324,375
Goodyear Tire & Rubber Company
8.625% due 12/01/2011			463,000		476,890
TRW Automotive, Inc.
7.00% due 03/15/2014 (h)			250,000		220,000
7.25% due 03/15/2017 (h)			375,000		322,500
United Components, Inc.
9.375% due 06/15/2013			250,000		222,500
					2,278,265
Auto Services - 0.20%
ERAC USA Finance Company
5.60% due 05/01/2015 (h)			240,000		208,645
7.95% due 12/15/2009 (h)			115,000		117,108
Hertz Corp.
8.875% due 01/01/2014			650,000		608,562
10.50% due 01/01/2016			275,000		242,688
KAR Holdings, Inc.
6.8006% due 05/01/2014 (b)			250,000		207,500
10.00% due 05/01/2015			425,000		358,063

 

The accompanying notes are an integral part of the financial statements.

285

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Auto Services (continued)
United Rentals North America, Inc.
6.50% due 02/15/2012		$	475,000	$	423,938
					2,166,504
Automobiles - 0.10%
DaimlerChrysler N.A. Holding Corp., EMTN
4.375% due 03/21/2013	EUR		100,000		138,003
DaimlerChrysler N.A. Holding Corp., MTN
3.2413% due 08/03/2009 (b)		$	655,000		651,864
DaimlerChrysler NA Holding Corp.
6.50% due 11/15/2013			190,000		188,760
Fiat Finance & Trade, Ltd.
6.625% due 02/15/2013	EUR		55,000		77,258
Fiat Finance North America, Inc., EMTN
5.625% due 06/12/2017			50,000		61,433
					1,117,318
Banking - 2.14%
American Express Centurion Bank
4.375% due 07/30/2009		$	300,000		299,923
5.55% due 10/17/2012			100,000		95,462
ATF Bank
9.00% due 05/11/2016			150,000		143,836
Australia & New Zealand Banking Group, Ltd., EMTN
4.375% due 05/24/2012	EUR		95,000		133,962
4.45% due 02/05/2015 (b)			84,000		119,633
BAC Capital Trust VI
5.625% due 03/08/2035		$	445,000		357,273
Banca Intesa SpA, EMTN
5.85% due 05/08/2014 (b)	EUR		67,000		98,140
Banca Monte dei Paschi di Siena SpA, EMTN
4.50% due 09/24/2015 (b)			75,000		106,360
4.875% due 05/31/2016			100,000		126,768
Banco Nacional de Desenvolvimento Economico e Social
6.369% due 06/16/2018		$	270,000		272,497
Bank of America Corp.
4.375% due 12/01/2010			200,000		200,578
4.50% due 08/01/2010			150,000		150,918
5.65% due 05/01/2018			1,160,000		1,070,113
5.75% due 08/15/2016			210,000		194,589
Bank of America Corp., EMTN
4.00% due 03/28/2017 (b)	EUR		100,000		127,376
4.625% due 02/18/2014			110,000		153,087
5.25% due 11/09/2016	GBP		100,000		164,441
Bank of America Corp., MTN
4.75% due 05/23/2017 (b)	EUR		50,000		67,350
Bank of Ireland
6.45% due 02/10/2010			49,000		72,435
Bank of Montreal
5.20% due 06/21/2017 (b)	CAD		49,000		46,202
Bank of New York Mellon Corp., MTN
4.50% due 04/01/2013		$	315,000		307,849
Bank One Corp.
5.25% due 01/30/2013			200,000		195,582
7.875% due 08/01/2010			310,000		326,087
Banque du Liban, EMTN
10.00% due 04/25/2015			300,000		320,250

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
Barclays Bank PLC
7.40% due 12/15/2009		$	300,000	$	309,070
Barclays Bank PLC, EMTN
5.75% due 03/08/2011	EUR		86,000		126,003
BB&T Capital Trust II
6.75% due 06/07/2036		$	180,000		148,411
BNP Paribas, EMTN
4.75% due 04/04/2011	EUR		100,000		144,210
Credit Agricole SA, EMTN
5.971% due 01/02/2018			150,000		226,809
Credit Agricole SA, Series TSDI
5 due 06/20/2049 (b)	GBP		125,000		184,883
Credit Suisse Group Finance Guernsey, Ltd.
6.375% due 06/07/2013	EUR		76,000		113,020
Danske Bank A/S, EMTN
6.00% due 03/20/2016 (b)			145,000		206,905
Deutsche Bank AG
5.125% due 01/31/2013			35,000		51,061
Deutsche Genossenschafts-Hypothekenbank AG,
EMTN
4.00% due 10/31/2016			1,850,000		2,595,927
DnB NOR Bank ASA, EMTN
4.75% due 03/28/2011			75,000		108,343
Eurohypo AG
4.50% due 01/21/2013 (h)			750,000		1,090,713
Fifth Third Bancorp
6.25% due 05/01/2013		$	275,000		241,236
8.25% due 03/01/2038			150,000		112,875
Fortis Bank SA/NV, EMTN
5.757% due 10/04/2017	EUR		75,000		102,337
HBOS PLC
6.00% due 11/01/2033 (h)		$	420,000		304,300
6.05% due 11/23/2049 (b)	EUR		70,000		90,435
HBOS PLC, EMTN
4.375% due 10/30/2019 (b)			59,000		71,285
HSBC Bank PLC, EMTN
4.25% due 03/18/2016 (b)			71,000		100,256
HSBC Bank USA, Inc.
4.625% due 04/01/2014		$	100,000		94,111
HSBC Capital Funding LP
8.03% due 12/29/2049 (b)	EUR		25,000		36,657
HSBC Holdings PLC
3.625% due 06/29/2020 (b)			75,000		94,962
6.50% due 05/02/2036		$	175,000		161,545
9.875% due 04/08/2018	GBP		120,000		245,570
HSBK Europe BV
7.75% due 05/13/2013		$	140,000		126,938
Hypothekenbank in Essen AG
3.875% due 11/21/2013	EUR		718,000		1,014,262
3.875% due 11/21/2013			892,000		1,257,965
Independence Community Bank Corp.
3.75% due 04/01/2014 (b)		$	15,000		11,028
ING Bank NV, EMTN
5.50% due 01/04/2012	EUR		71,000		104,348
Intesa Sanpaolo SpA, EMTN
4.375% due 06/26/2018 (b)			50,000		68,059
Intesabci Capital Trust
6.988% due 07/29/2049 (b)			55,000		79,627

 

The accompanying notes are an integral part of the financial statements.

286

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
Islandsbanki HF
2.9506% due 10/15/2008 (b)(h)		$	200,000	$	199,529
KeyCorp, MTNG
4.70% due 05/21/2009			45,000		44,480
Kreditanstalt fuer Wiederaufbau
4.70% due 06/02/2037	CAD		430,000		393,377
Kreditanstalt fuer Wiederaufbau, EMTN
7.375% due 01/27/2010	NGN		50,000,000		417,109
8.50% due 01/18/2011			30,000,000		248,281
Kreditanstalt fuer Wiederaufbau, Series EXCH
5.50% due 12/07/2015	GBP		455,000		852,549
Landwirtschaftliche Rentenbank, Series 7
3.75% due 06/15/2009		$	110,000		110,778
MPS Capital Trust I
7.99% due 12/29/2049 (b)	EUR		35,000		51,263
National Australia Bank, Ltd., EMTN
4.50% due 06/23/2016 (b)			100,000		138,108
NCNB Corp.
9.375% due 09/15/2009		$	275,000		285,994
Nordea Bank Finland PLC, EMTN
5.75% due 03/26/2014 (b)	EUR		52,000		76,098
Northern Trust Company, BKNT
4.60% due 02/01/2013		$	120,000		117,838
Northern Trust Corp
5.50% due 08/15/2013			215,000		218,736
Northern Trust Corp.
5.30% due 08/29/2011			144,000		147,229
PNC Funding Corp.
5.625% due 02/01/2017			195,000		181,439
7.50% due 11/01/2009			265,000		272,359
Rabobank Nederland, EMTN
3.125% due 07/19/2010	EUR		75,000		107,248
4.25% due 01/16/2017			100,000		139,081
Royal Bank of Canada
5.00% due 01/20/2014	CAD		99,000		93,322
Royal Bank of Scotland PLC, EMTN
6.00% due 05/10/2013	EUR		40,000		58,817
6 due 06/29/2049 (b)	GBP		104,000		170,501
Sanpaolo IMI SpA, EMTN
3.75% due 06/09/2015 (b)	EUR		64,000		90,274
Santander Issuances SA, EMTN
4.75% due 05/29/2019 (b)			100,000		134,476
Shinsei Bank, Ltd.
3.75% due 02/23/2016 (b)			80,000		99,120
Standard Chartered Bank, EMTN
3.625% due 02/03/2017 (b)			210,000		278,426
Sumitomo Mitsui Banking Corp.
4.375% due 07/29/2049 (b)			100,000		115,355
5.625% due 07/29/2049 (b)(h)		$	200,000		172,506
SunTrust Banks, Inc.
7.75% due 05/01/2010			250,000		259,286
Svenska Handelsbanken, EMTN
6.125% due 03/29/2049 (b)	GBP		49,000		88,462
Toronto-Dominion Bank, EMTN
4.875% due 01/23/2013	EUR		100,000		143,180
Toronto-Dominion Bank, MTN
5.69% due 06/03/2018 (b)	CAD		119,000		114,184
UniCredito Italiano SpA, EMTN
5.75% due 09/26/2017	EUR		95,000		139,238

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
UniCredito Italiano SpA, EMTN (continued)
6.10% due 02/28/2012	EUR		90,000	$	134,082
US Bancorp, MTN, Series P
4.50% due 07/29/2010		$	190,000		193,432
US Bank NA, BKNT
6.375% due 08/01/2011			400,000		419,836
VTB Capital SA
6.875% due 05/29/2018			150,000		140,175
Wachovia Corp.
4.375% due 08/01/2016	EUR		50,000		58,610
4.375% due 08/01/2016			50,000		58,665
5.75% due 02/01/2018		$	245,000		207,800
Wachovia Corp., MTN
5.50% due 05/01/2013			580,000		532,538
Westpac Banking Corp., EMTN
4.875% due 09/28/2012	EUR		75,000		105,705
World Savings Bank FSB, BKNT
4.125% due 12/15/2009		$	195,000		190,458
					22,773,806
Biotechnology - 0.06%
Biogen Idec, Inc.
6.00% due 03/01/2013			400,000		397,365
Genentech, Inc.
4.40% due 07/15/2010			125,000		126,940
4.75% due 07/15/2015			160,000		154,335
					678,640
Broadcasting - 0.76%
Allbritton Communications Company
7.75% due 12/15/2012			800,000		716,000
Barrington Broadcasting Group LLC
10.50% due 08/15/2014			200,000		169,000
Bonten Media Acquisition Company
9.00% due 06/01/2015 (h)			175,000		127,750
British Sky Broadcasting Group PLC
6.10% due 02/15/2018			445,000		430,612
BSKYB Finance UK PLC
5.75% due 10/20/2017	GBP		115,000		190,782
Canadian Satellite Radio Holdings, Inc.
12.75% due 02/15/2014		$	250,000		210,625
CanWest Media, Inc.
8.00% due 09/15/2012			400,000		343,500
Clear Channel Communications, Inc.
4.25% due 05/15/2009			125,000		120,469
4.50% due 01/15/2010			50,000		46,000
6.25% due 03/15/2011			1,325,000		1,050,062
6.326% due 11/13/2015			750,000		625,313
7.65% due 09/15/2010			350,000		334,250
News America, Inc.
6.15% due 03/01/2037			685,000		619,745
6.20% due 12/15/2034			190,000		172,664
6.40% due 12/15/2035			380,000		351,624
7.375% due 10/17/2008			125,000		125,587
Time Warner Cable, Inc.
5.40% due 07/02/2012			805,000		798,854
7.30% due 07/01/2038			1,145,000		1,150,527

 

The accompanying notes are an integral part of the financial statements.

287

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Broadcasting (continued)
XM Satellite Radio Holdings, Inc.
13.00% due 08/01/2013		$	600,000	$	528,000
					8,111,364
Building Materials & Construction - 0.36%
Associated Materials, Inc.
zero coupon, Step up to 11.25% on
03/01/2009 due 03/01/2014			250,000		167,500
Cemex Finance Europe BV
4.75% due 03/05/2014	EUR		50,000		60,184
Columbus McKinnon Corp.
8.875% due 11/01/2013		$	575,000		592,250
CRH America, Inc.
5.30% due 10/15/2013			140,000		129,526
6.00% due 09/30/2016			240,000		214,330
6.40% due 10/15/2033			65,000		50,974
Esco Corp.
6.6512% due 12/15/2013 (b)(h)			175,000		164,500
8.625% due 12/15/2013 (h)			600,000		603,000
HeidelbergCement Finance BV, EMTN
6.375% due 01/25/2012	EUR		60,000		85,262
K Hovnanian Enterprises, Inc.
11.50% due 05/01/2013 (h)		$	400,000		408,500
Lafarge SA
6.15% due 07/15/2011			140,000		138,467
Linde Finance BV
6.50% due 01/29/2016	GBP		65,000		119,035
Linde Finance BV, EMTN
4.75% due 04/24/2017	EUR		100,000		138,905
Obrascon Huarte Lain SA
5.00% due 05/18/2012			100,000		124,395
Owens Corning, Inc.
6.50% due 12/01/2016		$	120,000		109,066
Texas Industries, Inc.
7.25% due 07/15/2013			525,000		490,875
7.25% due 07/15/2013			125,000		117,813
US Concrete, Inc.
8.375% due 04/01/2014			200,000		166,000
					3,880,582
Business Services - 0.49%
Affinity Group, Inc.
9.00% due 02/15/2012			100,000		89,000
10.875% due 02/15/2012			123,587		108,139
Deluxe Corp.
7.375% due 06/01/2015			600,000		520,500
Dun & Bradstreet Corp.
5.50% due 03/15/2011			120,000		121,489
First Data Corp.
9.875% due 09/24/2015 (h)			1,025,000		884,062
FTI Consulting, Inc.
7.625% due 06/15/2013			375,000		389,062
7.75% due 10/01/2016			250,000		259,375
Manpower, Inc., EMTN
4.75% due 06/14/2013	EUR		50,000		67,990
Mobile Services Group, Inc.
9.75% due 08/01/2014		$	525,000		498,750
Nebraska Book Company, Inc.
8.625% due 03/15/2012			700,000		572,250

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Business Services (continued)
Sungard Data Systems, Inc.
9.125% due 08/15/2013		$	948,000	$	962,220
Thomson Reuters Corp.
5.20% due 12/01/2014	CAD		40,000		37,592
5.95% due 07/15/2013		$	390,000		395,347
6.50% due 07/15/2018			340,000		344,308
					5,250,084
Cable & Television - 1.04%
AT&T Broadband Corp.
8.375% due 03/15/2013			409,000		451,757
Comcast Cable Communications, Inc.
6.75% due 01/30/2011			225,000		233,435
Comcast Corp.
5.70% due 05/15/2018			340,000		323,105
5.85% due 01/15/2010			100,000		101,638
COX Communications, Inc.
6.25% due 06/01/2018			445,000		443,030
7.125% due 10/01/2012			171,000		179,613
CSC Holdings, Inc.
7.625% due 07/15/2018			75,000		69,750
8.125% due 07/15/2009			500,000		476,250
CSC Holdings, Inc., Series B
7.625% due 04/01/2011			200,000		201,000
8.125% due 07/15/2009			300,000		304,125
DirecTV Holdings LLC
7.625% due 05/15/2016			425,000		423,938
8.375% due 03/15/2013			500,000		517,500
EchoStar DBS Corp.
5.75% due 10/01/2008			15,000		15,000
6.375% due 10/01/2011			350,000		342,125
6.625% due 10/01/2014			250,000		230,000
7.00% due 10/01/2013			150,000		142,500
7.75% due 05/31/2015			675,000		644,625
Grupo Televisa SA
6.00% due 05/15/2018			150,000		146,712
Historic TW, Inc.
6.875% due 06/15/2018			385,000		375,896
ITV PLC, EMTN
4.75% due 10/03/2011	EUR		60,000		81,143
Kabel Deutschland GmbH
10.625% due 07/01/2014		$	375,000		385,313
Mediacom Broadband LLC
8.50% due 10/15/2015			525,000		479,063
Rainbow National Services LLC
8.75% due 09/01/2012 (h)			100,000		102,000
Rogers Cable, Inc.
5.50% due 03/15/2014			160,000		156,542
6.25% due 06/15/2013			335,000		340,872
Shaw Communications, Inc.
8.25% due 04/11/2010			125,000		128,281
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012			1,100,000		1,075,250
Superior Essex Communications &
Essex Group, Inc.
9.00% due 04/15/2012			250,000		261,250
Time Warner Entertainment Company LP
7.25% due 09/01/2008			305,000		305,000

 

The accompanying notes are an integral part of the financial statements.

288

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cable & Television (continued)
Time Warner, Inc.
5.50% due 11/15/2011		$	275,000	$	272,031
Univision Communications, Inc.
7.85% due 07/15/2011			100,000		89,500
9.75% due 03/15/2015 (h)			1,000,000		715,000
Viacom, Inc.
5.75% due 04/30/2011			95,000		94,251
6.125% due 10/05/2017			145,000		136,434
6.25% due 04/30/2016			295,000		280,952
Videotron Ltee.
6.375% due 12/15/2015			125,000		116,719
6.875% due 01/15/2014			390,000		378,788
9.125% due 04/15/2018 (h)			25,000		26,281
					11,046,669
Cellular Communications - 0.59%
Alamosa Delaware, Inc.
8.50% due 01/31/2012			375,000		390,938
America Movil SAB de CV
5.625% due 11/15/2017			375,000		363,486
6.375% due 03/01/2035			440,000		422,482
8.46% due 12/18/2036	MXN		1,000,000		86,152
American Tower Corp.
7.125% due 10/15/2012		$	60,000		61,200
7.50% due 05/01/2012			50,000		51,000
AT&T Wireless Services, Inc.
7.875% due 03/01/2011			455,000		486,695
Centennial Communications Corp.
8.5413% due 01/01/2013 (b)			100,000		99,500
10.00% due 01/01/2013			600,000		624,000
Cricket Communications, Inc.
9.375% due 11/01/2014			975,000		966,469
MetroPCS Wireless, Inc.
9.25% due 11/01/2014			1,125,000		1,115,156
Rogers Communications, Inc.
6.80% due 08/15/2018			375,000		380,279
7.50% due 03/15/2015			140,000		149,000
Rogers Wireless, Inc.
6.375% due 03/01/2014			400,000		405,734
7.625% due 12/15/2011	CAD		35,000		35,343
Telefonaktiebolaget LM Ericsson, EMTN
5.375% due 06/27/2017	EUR		80,000		103,811
VIP Finance Ireland, Ltd.
8.375% due 04/30/2013		$	130,000		129,402
9.125% due 04/30/2018			100,000		99,360
Vodafone Group PLC
5.625% due 02/27/2017			275,000		265,671
					6,235,678
Chemicals - 0.21%
Bayer AG, EMTN
5.625% due 05/23/2018	GBP		100,000		173,127
E.I. Du Pont de Nemours & Company
5.60% due 12/15/2036		$	285,000		256,367
Koppers Holdings, Inc.
0 due 11/15/2014			650,000		578,500
Koppers, Inc.
9.875% due 10/15/2013			100,000		105,000
Lubrizol Corp.
4.625% due 10/01/2009			310,000		309,693

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Chemicals (continued)
Lubrizol Corp. (continued)
5.875% due 12/01/2008		$	195,000	$	195,727
Nalco Company
7.75% due 11/15/2011			300,000		303,750
Terra Capital, Inc., Series B
7.00% due 02/01/2017			325,000		316,063
					2,238,227
Coal - 0.13%
Foundation PA Coal Company
7.25% due 08/01/2014			475,000		476,188
International Coal Group, Inc.
10.25% due 07/15/2014			475,000		482,125
Peabody Energy Corp.
7.375% due 11/01/2016			375,000		386,250
					1,344,563
Commercial Services - 0.11%
Aramark Corp.
5.00% due 06/01/2012			400,000		358,000
6.3006% due 02/01/2015 (b)			225,000		209,250
Mac-Gray Corp.
7.625% due 08/15/2015			525,000		500,063
Rentokil Initial PLC, EMTN
4.625% due 03/27/2014	EUR		50,000		60,126
					1,127,439
Computers & Business Equipment - 0.16%
Cisco Systems, Inc.
5.25% due 02/22/2011		$	170,000		175,594
Hewlett-Packard Company
5.25% due 03/01/2012			250,000		259,075
Seagate Technology HDD Holdings
6.375% due 10/01/2011			250,000		246,563
Unisys Corp.
12.50% due 01/15/2016			225,000		223,875
Xerox Corp.
5.50% due 05/15/2012			40,000		39,730
5.65% due 05/15/2013			370,000		366,634
6.35% due 05/15/2018			455,000		440,138
					1,751,609
Construction & Mining Equipment - 0.01%
Terex Corp.
7.375% due 01/15/2014			100,000		98,500
Containers & Glass - 0.27%
Ball Corp.
6.625% due 03/15/2018			575,000		563,500
BWAY Corp.
10.00% due 10/15/2010			500,000		497,500
Clondalkin Acquisition BV
4.7762% due 12/15/2013 (b)(h)			275,000		228,250
Owens-Brockway Glass Container, Inc.
6.75% due 12/01/2014			500,000		496,250
8.25% due 05/15/2013			275,000		283,250
Silgan Holdings, Inc.
6.75% due 11/15/2013			375,000		352,500
Smurfit-Stone Container Enterprises, Inc.
8.375% due 07/01/2012			300,000		263,250

 

The accompanying notes are an integral part of the financial statements.

289

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Containers & Glass (continued)
Stone Container Finance
7.375% due 07/15/2014		$	75,000	$	60,375
Vitro SA de CV
8.625% due 02/01/2012			200,000		176,700
					2,921,575
Crude Petroleum & Natural Gas - 1.32%
Amerada Hess Corp.
7.375% due 10/01/2009			75,000		77,444
AmeriGas Partners LP
7.125% due 05/20/2016			25,000		23,250
7.25% due 05/20/2015			825,000		781,687
Atlantic Richfield Corp.
9.125% due 03/01/2011			105,000		118,011
Canadian Natural Resources, Ltd.
5.15% due 02/01/2013			255,000		253,778
6.25% due 03/15/2038			210,000		193,422
6.45% due 06/30/2033			75,000		71,709
Canadian Natural Resources, Ltd., MTN
4.50% due 01/23/2013	CAD		45,000		41,609
Chesapeake Energy Corp.
6.375% due 06/15/2015		$	25,000		23,250
6.50% due 08/15/2017			1,305,000		1,213,650
6.875% due 01/15/2016			25,000		24,000
6.875% due 11/15/2020			350,000		322,875
Compton Petroleum Finance Corp.
7.625% due 12/01/2013			600,000		563,250
Connacher Oil and Gas, Ltd.
10.25% due 12/15/2015			600,000		619,500
Denbury Resources, Inc.
7.50% due 04/01/2013			225,000		221,906
7.50% due 12/15/2015			275,000		268,469
EnCana Corp.
4.60% due 08/15/2009			245,000		245,444
5.90% due 12/01/2017			365,000		358,247
6.50% due 08/15/2034			255,000		243,396
EnCana Corp., MTN
5.80% due 01/18/2018	CAD		30,000		28,848
Encore Acquisition Company
7.25% due 12/01/2017		$	525,000		477,750
Energy Partners, Ltd.
9.75% due 04/15/2014			250,000		221,875
Hess Corp.
6.65% due 08/15/2011			325,000		341,342
7.875% due 10/01/2029			368,000		413,269
Hilcorp Energy I LP
7.75% due 11/01/2015 (h)			650,000		588,250
OPTI Canada, Inc.
7.875% due 12/15/2014			540,000		533,925
8.25% due 12/15/2014			1,150,000		1,148,562
Petrobras International Finance Company
5.875% due 03/01/2018			390,000		380,624
PetroHawk Energy Corp.
7.875% due 06/01/2015 (h)			150,000		139,875
9.125% due 07/15/2013			650,000		646,750
Plains Exploration & Production Company
7.75% due 06/15/2015			175,000		166,687
Quicksilver Resources, Inc.
7.75% due 08/26/2013			750,000		743,753

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas
(continued)
Quicksilver Resources, Inc. (continued)
8.25% due 08/01/2015		$	625,000	$	604,688
SandRidge Energy, Inc.
6.4163% due 04/01/2014 (b)			500,000		468,911
SandRidge Energy, Inc., PIK
8.625% due 04/01/2015 (h)			1,000,000		965,000
Southern Natural Gas Company
5.90% due 04/01/2017 (h)			99,000		93,804
Southwestern Energy Company
7.50% due 02/01/2018 (h)			400,000		409,000
					14,037,810
Domestic Oil - 0.48%
ConocoPhillips Company
5.30% due 04/15/2012			415,000		427,694
Devon Financing Corp., ULC
6.875% due 09/30/2011			430,000		456,811
7.875% due 09/30/2031			375,000		432,694
Diamond Offshore Drilling, Inc.
4.875% due 07/01/2015			240,000		229,999
5.15% due 09/01/2014			395,000		390,974
EOG Resources, Inc.
5.875% due 09/15/2017			185,000		185,780
Forest Oil Corp.
7.25% due 06/15/2019			675,000		621,000
8.00% due 12/15/2011			400,000		409,000
Marathon Oil Corp.
5.90% due 03/15/2018			395,000		380,787
6.00% due 10/01/2017			220,000		217,568
6.60% due 10/01/2037			80,000		74,454
Range Resources Corp.
6.375% due 03/15/2015			650,000		611,000
7.25% due 05/01/2018			100,000		97,000
7.375% due 07/15/2013			75,000		74,250
7.50% due 10/01/2017			450,000		443,813
Valero Energy Corp.
3.50% due 04/01/2009			100,000		99,812
					5,152,636
Drugs & Health Care - 0.03%
AstraZeneca PLC, EMTN
5.125% due 01/15/2015	EUR		50,000		73,539
Wyeth
5.95% due 04/01/2037		$	205,000		196,844
					270,383
Educational Services - 0.04%
Education Management Corp.
8.75% due 06/01/2014			500,000		455,625
Electrical Equipment - 0.06%
General Cable Corp.
5.1662% due 04/01/2015 (b)			200,000		173,000
7.125% due 04/01/2017			375,000		356,250
Schneider Electric SA, EMTN
4.50% due 01/17/2014	EUR		50,000		67,862
					597,112

 

The accompanying notes are an integral part of the financial statements.

290

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities - 1.44%
AES Corp.
7.75% due 03/01/2014		$	50,000	$	49,750
8.875% due 02/15/2011			275,000		286,000
9.375% due 09/15/2010			100,000		105,000
Alabama Power Company
3.0006% due 08/25/2009 (b)			120,000		119,816
Alabama Power Company, Series 07-D
4.85% due 12/15/2012			100,000		101,257
Appalachian Power Company
6.375% due 04/01/2036			170,000		157,709
Appalachian Power Company, Series O
5.65% due 08/15/2012			325,000		324,171
Baltimore Gas & Electric Company
5.90% due 10/01/2016			285,000		274,993
Black Hills Corp.
6.50% due 05/15/2013			235,000		233,052
CenterPoint Energy Transition Bond Company,
LLC, Series A-2
4.97% due 08/01/2014			175,000		178,370
CenterPoint Energy, Inc., Series B
7.25% due 09/01/2010			205,000		210,855
CMS Energy Corp.
8.50% due 04/15/2011			50,000		52,581
Consolidated Edison Company of New York, Inc.
6.75% due 04/01/2038			170,000		176,272
Consumers Energy Company
5.80% due 09/15/2035			100,000		89,764
E.ON International Finance BV, EMTN
5.125% due 10/02/2012	EUR		50,000		73,308
5.50% due 10/02/2017			70,000		103,682
Edison SpA, EMTN
5.125% due 12/10/2010			45,000		65,632
El Paso Electric Company
6.00% due 05/15/2035		$	245,000		211,138
Elia System Operator SA
4.75% due 05/13/2014	EUR		68,000		97,732
Energy Future Holdings Corp.
10.875% due 11/01/2017 (h)		$	1,350,000		1,382,062
11.25% due 11/01/2017 (h)			2,225,000		2,197,187
Entergy Louisiana LLC
5.83% due 11/01/2010			35,000		34,843
Florida Power Corp.
6.35% due 09/15/2037			220,000		222,392
Hydro One, Inc.
7.15% due 06/03/2010	CAD		69,000		68,793
Illinois Power Company
6.125% due 11/15/2017		$	120,000		114,640
Jersey Central Power & Light Company
5.65% due 06/01/2017			405,000		387,100
Mirant Americas Generation LLC
8.30% due 05/01/2011			450,000		459,000
Monongahela Power Company
5.70% due 03/15/2017 (h)			265,000		259,504
National Grid PLC, EMTN
5.00% due 07/02/2018	EUR		22,000		30,340
National Power Corp.
6.875% due 11/02/2016		$	100,000		97,234
7.0606% due 08/23/2011 (b)(h)			200,000		207,500

 

Spectrum Income Fund (continued)
			Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
Nevada Power Company
5.875% due 01/15/2015			$	45,000	$	44,553
Nevada Power Company, Series R
6.75% due 07/01/2037				245,000		241,360
Northeast Utilities
5.65% due 06/01/2013				600,000		601,868
Northern States Power
5.25% due 03/01/2018				115,000		113,614
Orion Power Holdings, Inc.
12.00% due 05/01/2010				525,000		567,000
Pacific Gas & Electric Company
3.60% due 03/01/2009				362,000		362,327
4.80% due 03/01/2014				235,000		230,404
6.35% due 02/15/2038				110,000		109,733
PPL Capital Funding, Inc.
4.33% due 03/01/2009				85,000		85,003
Reliant Energy, Inc.
6.75% due 12/15/2014				600,000		604,500
Scottish Power UK PLC
8.375% due 02/20/2017		GBP		39,000		81,854
Sierra Pacific Resources
7.803% due 06/15/2012			$	125,000		129,023
8.625% due 03/15/2014				250,000		261,475
Southern California Edison Company
4.65% due 04/01/2015				275,000		268,690
Southern California Edison Company, Series 08-A
5.95% due 02/01/2038				65,000		64,478
Southern Company, Series A
5.30% due 01/15/2012				95,000		97,725
Tampa Electric Company
6.15% due 05/15/2037				230,000		208,064
Taqa Abu Dhabi National Energy Company
5.62% due 10/25/2012 (h)				820,000		805,069
6.60% due 08/01/2013 (h)				275,000		279,087
Texas Competitive Electric Holdings Company
LLC, PIK
10.50% due 11/01/2016 (h)				325,000		311,188
Union Electric Company
5.40% due 02/01/2016				285,000		267,352
Vattenfall Treasury AB, EMTN
6.00% due 04/03/2009		EUR		35,000		51,582
Virginia Electric and Power Company
4.50% due 12/15/2010			$	230,000		232,410
5.10% due 11/30/2012				210,000		211,000
Virginia Electric and Power Company, Series A
6.00% due 05/15/2037				300,000		283,616
West Penn Power Company	��
5.95% due 12/15/2017 (h)				220,000		218,216
Westar Energy, Inc.
5.10% due 07/15/2020				185,000		168,592
Xcel Energy, Inc.
7.00% due 12/01/2010				30,000		31,279
						15,302,739
Electronics - 0.11%
Avnet, Inc.
5.875% due 03/15/2014				260,000		251,488
Celestica, Inc.
7.875% due 07/01/2011				425,000		426,062

 

The accompanying notes are an integral part of the financial statements.

291

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electronics (continued)
Flextronics International, Ltd.
6.50% due 05/15/2013		$	325,000	$	307,125
Sanmina-SCI Corp.
5.5262% due 06/15/2010 (b)(h)			194,000		192,060
					1,176,735
Energy - 0.86%
Baker Hughes, Inc.
6.00% due 02/15/2009			280,000		283,421
Cimarex Energy Company
7.125% due 05/01/2017			100,000		97,500
Copano Energy LLC
8.125% due 03/01/2016			575,000		557,750
Dynegy Holdings, Inc.
7.75% due 06/01/2019			1,000,000		922,500
Encore Acquisition Company
6.25% due 04/15/2014			275,000		246,125
Enterprise Products Operating LP
4.95% due 06/01/2010			490,000		489,387
6.30% due 09/15/2017			215,000		214,555
Ferrellgas Partners LP
8.75% due 06/15/2012			750,000		697,500
Mirant North America LLC
7.375% due 12/31/2013			775,000		769,187
Niagara Mohawk Power Corp., Series G
7.75% due 10/01/2008			50,000		50,141
Northwest Pipeline Corp.
5.95% due 04/15/2017			65,000		63,652
NRG Energy, Inc.
7.25% due 02/01/2014			400,000		394,500
7.375% due 02/01/2016			1,605,000		1,584,937
Plains Exploration & Production Company
7.00% due 03/15/2017			650,000		585,000
7.625% due 06/01/2018			175,000		164,938
Progress Energy, Inc.
5.625% due 01/15/2016			400,000		399,040
Reliant Energy, Inc.
7.625% due 06/15/2014			575,000		556,313
7.875% due 12/31/2017			275,000		265,375
Sempra Energy
7.95% due 03/01/2010			250,000		262,633
Valero Energy Corp.
6.125% due 06/15/2017			510,000		483,340
Venoco, Inc.
8.75% due 12/15/2011			100,000		95,000
					9,182,794
Financial Services - 4.55%
AAC Group Holding Corp.
10.25 due 10/01/2012 (h)			125,000		118,750
AGFC Capital Trust I
6.00% due 01/15/2067 (b)(h)			200,000		134,842
American Express Credit Corp., EMTN
3.625% due 10/13/2009	EUR		55,000		78,122
American Express Credit Corp., MTN
5.875% due 05/02/2013		$	380,000		365,391
American Express Credit Corp., Series C
7.30% due 08/20/2013			190,000		193,010
American General Finance Corp., MTNI
5.40% due 12/01/2015			250,000		183,904

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
American Honda Finance Corp.
4.50% due 05/26/2009 (h)		$	365,000	$	366,959
Arch Western Finance LLC
6.75% due 07/01/2013			425,000		423,937
Bank Nederlandse Gemeenten, EMTN
4.625% due 09/13/2012	EUR		925,000		1,357,268
BAT International Finance PLC, EMTN
5.375% due 06/29/2017			80,000		110,600
BHP Billiton Finance, Ltd.
5.40% due 03/29/2017		$	170,000		162,588
Boeing Capital Corp., Ltd.
7.375% due 09/27/2010			355,000		380,710
Capital One Capital IV
6.745% due 02/17/2037 (b)			425,000		293,064
Caterpillar Financial Services Corp.
4.50% due 06/15/2009			125,000		125,991
Caterpillar Financial Services Corp., MTN
4.25% due 02/08/2013			220,000		217,248
5.85% due 09/01/2017			165,000		170,099
Caterpillar Financial Services Corp., Series F
4.50% due 09/01/2008			140,000		140,000
CenterCredit International BV
8.625% due 01/30/2014			440,000		385,000
CIT Group, Inc.
3.875% due 11/03/2008			280,000		277,646
7.625% due 11/30/2012			156,000		132,420
CIT Group, Inc., MTN, Series G
4.25% due 09/22/2011	EUR		50,000		53,469
Citigroup, Inc.
3.625% due 02/09/2009		$	130,000		129,781
3.875% due 05/21/2010	EUR		75,000		106,558
4.75% due 02/10/2019 (b)			80,000		101,324
5.00% due 09/15/2014		$	670,000		599,513
5.125% due 02/14/2011			220,000		217,261
5.50% due 08/27/2012			220,000		213,011
5.50% due 04/11/2013			615,000		593,092
5.85% due 07/02/2013			545,000		532,218
6.125% due 05/15/2018			645,000		603,044
6.50% due 08/19/2013			500,000		500,545
Citigroup, Inc., EMTN
3.50% due 08/05/2015	EUR		110,000		137,916
6.40% due 03/27/2013			60,000		87,497
Countrywide Financial Corp.
4.50% due 06/15/2010		$	135,000		127,190
Countrywide Home Loans, Inc., MTN
4.125% due 09/15/2009			540,000		517,191
Credit Suisse First Boston USA, Inc.
4.875% due 08/15/2010			400,000		403,872
Credit Suisse USA, Inc.
5.50% due 08/16/2011			170,000		172,513
Credit Suisse/London, EMTN
4.75% due 09/24/2010	EUR		85,000		123,170
5.125% due 09/18/2017			75,000		106,380
E*Trade Financial Corp.
8.00% due 06/15/2011		$	175,000		158,375
12.50% due 11/30/2017			1,000,000		1,070,000
12.50% due 11/30/2017			100,000		107,000
ERP Operating LP
3.85% due 08/15/2026			15,000		14,212

 

The accompanying notes are an integral part of the financial statements.

292

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Ford Motor Credit Company
5.70% due 01/15/2010		$	100,000	$	87,252
7.2406% due 04/15/2012 (b)			2,575,000		2,462,424
7.375% due 10/28/2009			225,000		209,120
Fund American Companies, Inc.
5.875% due 05/15/2013			205,000		192,265
GATX Financial Corp.
5.50% due 02/15/2012			275,000		276,498
GE Capital Canada Funding Company, MTN
4.65% due 02/11/2015	CAD		134,000		122,855
GE Capital European Funding, EMTN
3.50% due 02/14/2013	EUR		160,000		220,215
GE Capital UK Funding, EMTN
5.625% due 12/12/2014	GBP		145,000		259,570
General Electric Capital Corp.
4.625% due 09/15/2066 (b)	EUR		135,000		161,551
4.80% due 05/01/2013		$	835,000		825,653
5.625% due 05/01/2018			780,000		758,332
5.875% due 01/14/2038			425,000		382,685
General Electric Capital Corp., MTN
5.25% due 10/19/2012			400,000		404,947
General Motors Acceptance Corp.
6.875% due 08/28/2012			1,175,000		689,308
GIE Suez Alliance, EMTN
5.125% due 06/24/2015	EUR		82,000		120,777
Goldman Sachs Group, Inc.
3.75% due 02/04/2013			75,000		98,642
5.125% due 10/16/2014			100,000		136,593
6.15% due 04/01/2018		$	735,000		703,077
6.345% due 02/15/2034			239,000		198,613
6.60% due 01/15/2012			150,000		155,225
6.75% due 10/01/2037			335,000		294,751
6.875% due 01/15/2011			635,000		658,926
Goldman Sachs Group, Inc., GMTN
4.50% due 01/30/2017	EUR		100,000		127,689
GTB Finance BV
8.50% due 01/29/2012		$	475,000		446,500
Hartford Financial Services Group, Inc.
5.25% due 10/15/2011			260,000		257,376
5.375% due 03/15/2017			255,000		237,749
Hawker Beechcraft Acquisition Company LLC
8.50% due 04/01/2015			700,000		705,250
8.875% due 04/01/2015			225,000		224,437
9.75% due 04/01/2017			175,000		171,500
HBOS PLC
5.92% due 09/29/2049 (b)(h)			400,000		258,923
HSBC Finance Corp.
4.125% due 11/16/2009			150,000		149,563
Icahn Enterprises LP
7.125% due 02/15/2013			600,000		524,250
International Lease Finance Corp., EMTN
4.125% due 10/09/2008	EUR		70,000		102,296
International Lease Finance Corp., MTN
5.30% due 05/01/2012		$	375,000		327,027
5.45% due 03/24/2011			500,000		454,999
6.625% due 11/15/2013			610,000		543,071
iPayment Investors LP
11.625% due 07/15/2014 (b)(h)			416,697		420,864

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
iPayment, Inc.
9.75% due 05/15/2014		$	400,000	$	335,000
Jefferies Group, Inc.
5.875% due 06/08/2014			176,000		164,026
6.25% due 01/15/2036			260,000		187,261
John Deere Capital Corp., MTN
4.95% due 12/17/2012			980,000		990,553
5.50% due 04/13/2017			130,000		128,526
JP Morgan Chase & Company
4.75% due 05/01/2013			485,000		467,558
6.00% due 01/15/2018			775,000		750,496
6.25% due 01/15/2009			315,000		316,936
6.3643% due 06/20/2011 (b)	RUB		2,000,000		81,678
6.40% due 05/15/2038		$	380,000		352,943
JP Morgan Chase & Company, EMTN
4.25% due 06/09/2011	EUR		39,000		55,383
4.375% due 11/12/2019 (b)			150,000		192,279
4.375% due 01/30/2014			50,000		68,182
JP Morgan Chase Capital XVIII, Series R
6.95% due 08/17/2036		$	115,000		100,800
JP Morgan Chase Capital XXII, Series V
6.45% due 02/02/2037			245,000		199,897
JSG Funding PLC
7.75% due 04/01/2015			450,000		396,000
Lehman Brothers Holdings, Inc.
6.50% due 07/19/2017			915,000		809,969
7.50% due 05/11/2038			495,000		438,366
Lehman Brothers Holdings, Inc., EMTN
4.625% due 03/14/2019 (b)	EUR		150,000		151,728
5.375% due 10/17/2012			50,000		63,231
Lehman Brothers Holdings, Inc., MTN
5.25% due 02/06/2012		$	345,000		323,350
6.875% due 05/02/2018			750,000		698,269
Lehman Brothers Holdings, Inc., MTN, Series G
3.95% due 11/10/2009			325,000		313,472
Local TV Finance LLC
9.25% due 06/15/2015 (h)			200,000		148,000
Mangrove Bay Pass Through Trust
6.102% due 07/15/2033 (b)(h)			200,000		101,822
Mellon Funding Corp.
6.375% due 11/08/2011	GBP		145,000		265,059
Merrill Lynch & Company, Inc.
5.45% due 02/05/2013		$	570,000		531,601
7.75% due 05/14/2038			410,000		368,045
Merrill Lynch & Company, Inc., EMTN
4.625% due 10/02/2013	EUR		128,000		158,482
Merrill Lynch & Company, Inc., MTN
6.15% due 04/25/2013		$	195,000		184,789
6.875% due 04/25/2018			745,000		686,152
Merrill Lynch & Company, Inc., Series CPI
5.3355% due 03/02/2009 (b)			150,000		149,919
Merrill Lynch Canada Finance Company, MTN
5.00% due 02/18/2014	CAD		40,000		35,054
Metropolitan Life Global Funding
5.125% due 11/09/2011 (h)		$	335,000		342,538
Metropolitan Life Global Funding I, EMTN
4.625% due 05/16/2017	EUR		100,000		131,866

 

The accompanying notes are an integral part of the financial statements.

293

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Mitsubishi UFJ Financial Group, Inc., Capital
Finance 1, Ltd.
6.346% due 07/29/2049 (b)		$	200,000	$	165,845
Mizuho Capital Investment 1, Ltd.
5.02% due 06/29/2049 (b)	EUR		50,000		64,697
6.686% due 12/31/2049 (b)(h)		$	126,000		107,246
Morgan Stanley
4.00% due 01/15/2010			455,000		450,576
Morgan Stanley, EMTN
4.00% due 11/17/2015	EUR		140,000		171,033
Morgan Stanley, GMTN
5.125% due 11/30/2015	GBP		100,000		156,396
Morgan Stanley, MTN
6.00% due 04/28/2015		$	600,000		552,652
6.625% due 04/01/2018			550,000		511,018
National Rural Utilities Cooperative Finance Corp.
4.375% due 10/01/2010			100,000		101,110
Nationwide Building Society, EMTN
3.375% due 08/17/2015 (b)	EUR		55,000		72,287
Nexstar Finance Holdings LLC
11.375 due 04/01/2013		$	415,468		373,921
Nexstar Finance, Inc.
7.00% due 01/15/2014			425,000		348,500
Nisource Finance Corp.
3.3806% due 11/23/2009 (b)			140,000		136,368
6.15% due 03/01/2013			215,000		213,547
Nissan Motor Acceptance Corp.
4.625% due 03/08/2010 (h)			120,000		120,431
Nuveen Investments, Inc.
5.00% due 09/15/2010			275,000		245,437
10.50% due 11/15/2015 (h)			425,000		368,687
Nuveen Investments, Inc., Class A
5.50% due 09/15/2015			725,000		480,312
RBS Global, Inc.
9.50% due 08/01/2014			750,000		731,250
11.75% due 08/01/2016			175,000		170,187
Red Arrow International Leasing PLC
8.375% due 06/30/2012	RUB		1,554,053		61,550
RWE Finance BV, EMTN
6.375% due 06/03/2013	GBP		150,000		278,042
Severn Trent Utilities Finance PLC, EMTN
5.25% due 03/11/2016	EUR		65,000		93,540
SLM Corp.
5.45% due 04/25/2011		$	650,000		590,758
SLM Corp., MTN
8.45% due 06/15/2018			380,000		348,450
SLM Corp., MTN, Series A
2.94% due 07/27/2009 (b)			1,390,000		1,317,314
SLM Corp., Series CPI
5.31% due 04/01/2009 (b)			365,000		351,364
Societe Generale, EMTN
5.25% due 03/28/2013	EUR		100,000		144,677
Sovereign Capital Trust VI
7.908% due 06/13/2036		$	245,000		187,670
Sun Life Financial Global Funding LP
3.0413% due 10/06/2013 (b)(h)			250,000		247,076
Teco Finance, Inc.
6.572% due 11/01/2017			37,000		35,543
7.00% due 05/01/2012			53,000		53,550

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
TMK Capital SA for OAO TMK
10.00% due 07/29/2011		$	100,000	$	105,400
Torchmark Corp.
6.375% due 06/15/2016			230,000		234,567
UBS AG/Jersey, EMTN
4.50% due 09/16/2019 (b)	EUR		215,000		273,123
UCI Holdco, Inc.
10.2763% due 12/15/2013		$	387,944		298,717
Wells Fargo & Company
4.20% due 01/15/2010			455,000		457,739
4.875% due 01/12/2011			225,000		228,695
Wells Fargo Bank NA
4.75% due 02/09/2015			270,000		252,844
Wells Fargo Financial Canada Corp., MTN
4.33% due 12/06/2013	CAD		45,000		40,825
					48,495,628
Food & Beverages - 0.50%
Ahold Finance USA, Inc., EMTN
6.50% due 03/14/2017	GBP		50,000		86,130
B&G Foods, Inc.
8.00% due 10/01/2011		$	500,000		490,000
Casino Guichard Perrachon SA, EMTN
4.875% due 04/10/2014	EUR		50,000		66,868
Del Monte Corp.
8.625% due 12/15/2012		$	550,000		555,500
General Mills, Inc.
5.25% due 08/15/2013			440,000		442,826
General Mills, Inc., MTN
6.378% due 10/15/2008			215,000		215,564
Kellogg Company
4.25% due 03/06/2013			975,000		956,592
Kraft Foods, Inc., EMTN
6.25% due 03/20/2015	EUR		50,000		73,353
Kroger Company
6.15% due 01/15/2020		$	130,000		129,254
McCormick & Company, Inc.
5.80% due 07/15/2011			130,000		137,601
McCormick & Company, Inc., MTN
3.35% due 04/15/2009			110,000		110,252
McDonald’s Corp.
5.30% due 03/15/2017			205,000		203,747
Molson Coors Capital Finance ULC
5.00% due 09/22/2015	CAD		45,000		41,395
Panamerican Beverages, Inc.
7.25% due 07/01/2009		$	35,000		35,879
PepsiAmericas, Inc.
4.875% due 01/15/2015			55,000		53,698
SABMiller PLC
6.20% due 07/01/2011 (h)			330,000		341,302
SYSCO Corp
5.25% due 02/12/2018			110,000		110,937
Tesco PLC, EMTN
5.50% due 12/13/2019	GBP		100,000		176,381
William Wrigley Jr. Company
4.30% due 07/15/2010		$	1,000,000		1,005,000
4.65% due 07/15/2015			55,000		47,148
					5,279,427

 

The accompanying notes are an integral part of the financial statements.

294

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Forest Products - 0.04%
Verso Paper Holdings LLC and Verson Paper Inc, Series B
6.5506% due 08/01/2014 (b)		$	425,000	$	378,250
Weyerhaeuser Company
7.375% due 03/15/2032			90,000		86,225
					464,475
Gas & Pipeline Utilities - 0.43%
Atmos Energy Corp.
4.00% due 10/15/2009			230,000		227,988
5.95% due 10/15/2034			40,000		34,489
Boardwalk Pipelines LLC
5.50% due 02/01/2017			305,000		282,479
Colorado Interstate Gas Company
5.95% due 03/15/2015			150,000		146,330
Duke Capital Corp.
7.50% due 10/01/2009			130,000		133,177
Duke Capital Corp., Series B
6.75% due 07/15/2018			90,000		89,336
Dynegy Holdings, Inc.
7.50% due 06/01/2015			575,000		540,500
El Paso Natural Gas Company
5.95% due 04/15/2017			99,000		94,104
Enbridge, Inc., MTN
7.20% due 06/18/2032	CAD		28,000		27,621
Kinder Morgan Finance Company
5.70% due 01/05/2016		$	480,000		444,600
Kinder Morgan, Inc.
6.50% due 09/01/2012			139,000		137,610
National Gas Company			��
6.05% due 01/15/2036 (h)			105,000		97,870
Nustar Logistics
7.65% due 04/15/2018			180,000		181,189
Piedmont Natural Gas Company
6.00% due 12/19/2033			15,000		14,038
Praxair, Inc.
4.625% due 03/30/2015			415,000		397,721
5.20% due 03/15/2017			205,000		200,087
Southern California Gas Company
5.75% due 11/15/2035			230,000		219,413
Sunoco, Inc.
4.875% due 10/15/2014			30,000		28,120
5.75% due 01/15/2017			240,000		222,801
Williams Companies, Inc.
7.75% due 06/15/2031			400,000		411,000
8.125% due 03/15/2012			600,000		637,500
					4,567,973
Healthcare Products - 0.16%
Bausch & Lomb, Inc.
9.875% due 11/01/2015 (h)			675,000		693,562
GlaxoSmithKline Capital PLC, EMTN
5.125% due 12/13/2012	EUR		50,000		73,593
5.625% due 12/13/2017			95,000		141,915
Johnson & Johnson
4.75% due 11/06/2019			50,000		72,379
Medtronic, Inc., Series B
4.375% due 09/15/2010		$	145,000		147,139
4.75% due 09/15/2015			330,000		326,098

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Healthcare Products (continued)
Universal Hospital Services, Inc.
6.3025% due 06/01/2015 (b)		$	200,000	$	186,000
8.50% due 06/01/2015			100,000		99,500
					1,740,186
Healthcare Services - 0.38%
Cardinal Health, Inc.
3.0531% due 10/02/2009 (b)			260,000		255,230
Centene Corp.
7.25% due 04/01/2014			400,000		375,000
CRC Health Corp.
10.75% due 02/01/2016			125,000		96,250
DaVita, Inc.
6.625% due 03/15/2013			525,000	��	511,875
7.25% due 03/15/2015			750,000		737,812
Healthsouth Corp.
10.75% due 06/15/2016			425,000		456,875
U.S. Oncology Holdings, Inc., PIK
7.9494% due 03/15/2012			356,000		284,800
US Oncology, Inc.
9.00% due 08/15/2012			125,000		125,000
10.75% due 08/15/2014			175,000		175,438
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014			575,000		564,937
WellPoint, Inc.
4.25% due 12/15/2009			40,000		39,533
5.00% due 01/15/2011			415,000		413,169
					4,035,919
Holdings Companies/Conglomerates - 0.11%
ERP Operating LP
5.25% due 09/15/2014			190,000		175,230
Hutchison Whampoa Finance, Ltd.
5.875% due 07/08/2013	EUR		62,000		88,721
Visant Corp.
7.625% due 10/01/2012		$	325,000		317,688
Visant Holding Corp. zero coupon, Step up to 10.25% on
12/01/2008 due 12/01/2013			600,000		585,000
					1,166,639
Homebuilders - 0.10%
Centex Corp.
4.55% due 11/01/2010			150,000		133,500
5.45% due 08/15/2012			60,000		50,850
D.R. Horton, Inc.
4.875% due 01/15/2010			70,000		65,450
6.50% due 04/15/2016			55,000		44,000
Lennar Corp., Series B
5.60% due 05/31/2015			395,000		264,650
5.95% due 10/17/2011			25,000		20,000
MDC Holdings, Inc., MTN
5.375% due 12/15/2014			60,000		55,389
NVR, Inc.
5.00% due 06/15/2010			115,000		113,245
Pulte Homes, Inc.
5.20% due 02/15/2015			325,000		269,750
Ryland Group, Inc.
5.375% due 01/15/2015			20,000		15,800
					1,032,634

 

The accompanying notes are an integral part of the financial statements.

295

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Hotels & Restaurants - 0.25%
Gaylord Entertainment Company
6.75% due 11/15/2014		$	600,000	$	523,500
8.00% due 11/15/2013			300,000		275,250
Harrah’s Operating Company, Inc.
5.375% due 12/15/2013			300,000		135,750
5.50% due 07/01/2010			1,540,900		1,294,356
O’Charleys, Inc.
9.00% due 11/01/2013			250,000		223,750
OSI Restaurant Partners, Inc.
10.00% due 06/15/2015			150,000		82,500
Real Mex Restaurants, Inc.
10.00% due 04/01/2010			165,000		158,400
					2,693,506
Household Appliances - 0.01%
Whirlpool Corp.
6.125% due 06/15/2011			140,000		142,101
Household Products - 0.02%
Simmons Bedding Company
7.875% due 01/15/2014			225,000		178,875
Industrial Machinery - 0.07%
Manitowoc, Inc.
7.125% due 11/01/2013			100,000		93,500
10.25% due 08/15/2012			250,000		245,000
Stewart & Stevenson LLC
10.00% due 07/15/2014			375,000		364,688
					703,188
Industrials - 0.05%
Air Products & Chemicals, Inc.
4.15% due 02/01/2013			150,000		146,919
WCA Waste Corp.
9.25% due 06/15/2014			400,000		396,000
					542,919
Insurance - 0.49%
ACE INA Holdings, Inc.
5.70% due 02/15/2017			240,000		230,245
Allstate Life Funding LLC, EMTN
6.375% due 01/17/2011	GBP		49,000		88,578
ASIF II, EMTN
5.625% due 02/01/2012			159,000		259,843
Berkshire Hathaway Finance Corp.
4.60% due 05/15/2013		$	400,000		401,425
Genworth Financial, Inc.
5.75% due 06/15/2014			49,000		45,011
6.15% due 11/15/2066 (b)			156,000		112,323
Highmark, Inc.
6.80% due 08/15/2013 (h)			225,000		248,710
HUB International Holdings, Inc.
9.00% due 12/15/2014 (h)			550,000		490,875
10.25% due 06/15/2015 (h)			975,000		777,563
Monumental Global Funding, Ltd., EMTN
5.375% due 03/13/2009	EUR		39,000		57,212
Muenchener Rueckversicherungs AG
5.767% due 06/29/2049 (b)			100,000		119,829
Nationwide Mutual Insurance Company
6.60% due 04/15/2034 (h)		$	135,000		113,004

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Insurance (continued)
New York Life Global Funding
4.625% due 08/16/2010 (h)		$	235,000	$	238,387
New York Life Global Funding, EMTN
4.375% due 01/19/2017	EUR		100,000		133,024
NLV Financial Corp.
7.50% due 08/15/2033 (h)		$	285,000		272,353
Ohio National Financial Services, Inc.
6.35% due 04/01/2013 (h)			15,000		16,335
Pacific Life Funding LLC, EMTN
5.125% due 01/20/2015	GBP		89,000		150,741
5.50% due 05/14/2009	EUR		39,000		56,540
Principal Financial Global Funding II LLC, EMTN
4.50% due 01/26/2017			50,000		65,844
Principal Financial Group, Inc.
6.05% due 10/15/2036		$	180,000		156,327
Principal Life Global Funding I
5.25% due 01/15/2013 (h)			190,000		188,791
Principal Life Income Funding Trusts
5.20% due 11/15/2010			40,000		39,906
Principal Financial Global Funding LLC, EMTN
4.50% due 01/22/2009	EUR		39,000		57,009
RLI Corp.
5.95% due 01/15/2014		$	20,000		19,577
Security Benefit Life Insurance Company
7.45% due 10/01/2033 (h)			95,000		79,068
Sun Life Assurance Company of Canada
6.15% due 06/30/2022 (b)	CAD		42,000		41,447
Transatlantic Holdings, Inc.
5.75% due 12/14/2015		$	170,000		162,088
Travelers Insurance Company Institutional Funding, Ltd.
5.75% due 12/06/2011	GBP		159,000		282,507
USI Holdings Corp.
9.75% due 05/15/2015 (h)		$	225,000		179,438
Willis North America, Inc.
6.20% due 03/28/2017			195,000		181,385
					5,265,385
International Oil - 0.38%
Gaz Capital for Gazprom
7.288% due 08/16/2037			490,000		415,796
8.625% due 04/28/2034			175,000		181,562
Gaz Capital for Gazprom, EMTN
4.56% due 12/09/2012	EUR		150,000		200,001
Gaz Capital SA
8.146% due 04/11/2018		$	300,000		296,916
Newfield Exploration Company
6.625% due 09/01/2014			35,000		32,944
Pemex Project Funding Master Trust
4.0763% due 06/15/2010 (b)(h)			215,000		215,215
5.75% due 03/01/2018			465,000		456,841
6.25% due 08/05/2013	EUR		150,000		220,955
Petro-Canada
6.80% due 05/15/2038		$	125,000		118,917
Petroleos de Venezuela SA
5.25% due 04/12/2017			305,000		204,884
5.375% due 04/12/2027			650,000		367,412
PF Export Receivables Master Trust
6.436% due 06/01/2015 (h)			56,485		56,143

 

The accompanying notes are an integral part of the financial statements.

296

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
			Shares or Principal Amount		Value
CORPORATE BONDS (continued)
International Oil (continued)
Transocean, Inc.
5.25% due 03/15/2013			$	210,000	$	209,478
XTO Energy, Inc.
4.625% due 06/15/2013				525,000		501,629
5.65% due 04/01/2016				365,000		351,988
YPF SA, MTNC
10.00% due 11/02/2028				220,000		215,600
						4,046,281
Investment Companies - 0.06%
BES Finance, Ltd., EMTN					��
6.25% due 05/17/2011		EUR		66,000		96,858
Credit Suisse Guernsey, Ltd.
5.86% due 05/29/2049 (b)			$	290,000		235,332
Xstrata Finance Canada, Ltd.
5.50% due 11/16/2011 (h)				180,000		177,284
Xstrata Finance Canada, Ltd., EMTN
5.25% due 06/13/2017		EUR		80,000		102,551
						612,025
Kansas - 0.01%
Bank of Nova Scotia
8.30% due 09/27/2013		CAD		97,000		104,470
Leisure Time - 0.58%
Chukchansi Economic Development Authority
6.3275% due 11/15/2012 (b)(h)	��		$	75,000		60,188
Fontainebleau Las Vegas Holdings
10.25% due 06/15/2015 (h)				250,000		118,125
International Speedway Corp.
4.20% due 04/15/2009				90,000		89,904
Isle of Capri Casinos, Inc.
7.00% due 03/01/2014				575,000		411,125
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 (h)				175,000		145,688
Lottomatica SpA
4.80% due 12/22/2008		EUR		30,000		43,892
MGM Mirage, Inc.
8.50% due 09/15/2010			$	800,000		774,000
Park Place Entertainment Corp.
8.125% due 05/15/2011				625,000		437,500
Penn National Gaming, Inc.
6.75% due 03/01/2015				400,000		348,000
Pinnacle Entertainment, Inc.
7.50% due 06/15/2015				475,000		368,125
8.25% due 03/15/2012				500,000		487,500
Pokagon Gaming Authority
10.375% due 06/15/2014 (h)				650,000		677,625
Royal Caribbean Cruises, Ltd.
7.00% due 06/15/2013				100,000		89,500
Shingle Springs Tribal Gaming Authority
9.375% due 06/15/2015 (h)				550,000		446,875
Speedway Motorsports, Inc.
6.75% due 06/01/2013				360,000		342,900
Vivendi
5.75% due 04/04/2013				410,000		403,158
Wynn Las Vegas LLC
6.625% due 12/01/2014				1,075,000		979,594
						6,223,699

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Manufacturing - 0.26%
3M Company, MTN
5.125% due 11/06/2009	$	95,000	$	97,317
5.70% due 03/15/2037		200,000		205,138
AGY Holding Corp.
11.00% due 11/15/2014		250,000		232,500
Cooper US, Inc.
6.10% due 07/01/2017		205,000		209,039
General Dynamics Corp.
4.50% due 08/15/2010		310,000		318,132
Honeywell International, Inc.
4.25% due 03/01/2013		260,000		258,216
5.30% due 03/01/2018		235,000		233,099
Sally Holdings LLC
9.25% due 11/15/2014		425,000		429,781
10.50% due 11/15/2016		75,000		75,375
SPX Corp.
7.625% due 12/15/2014 (h)		375,000		385,313
Trinity Industries, Inc.
6.50% due 03/15/2014		350,000		336,000
				2,779,910
Medical-Hospitals - 0.68%
Community Health Systems, Inc.
8.875% due 07/15/2015		1,950,000		1,969,500
HCA, Inc.
9.25% due 11/15/2016		2,250,000		2,314,688
9.625% due 11/15/2016		125,000		126,094
Health Management Associates, Inc.
3.70% due 08/16/2020		1,197,319		1,097,259
6.125% due 04/15/2016		1,250,000		1,087,500
Symbion, Inc.
11.00% due 08/23/2015		282,180		212,340
United Surgical Partners International, Inc.
8.875% due 05/01/2017		450,000		387,000
				7,194,381
Metal & Metal Products - 0.11%
Clarendon Alumina Production, Ltd.
8.50% due 11/16/2021		100,000		102,250
Gibraltar Industries, Inc., Series B
8.00% due 12/01/2015		900,000		767,250
Hawk Corp.
8.75% due 11/01/2014		331,000		335,965
				1,205,465
Mining - 0.53%
Freeport-McMoRan Copper & Gold, Inc.
8.25% due 04/01/2015		525,000		551,250
8.375% due 04/01/2017		3,225,000		3,418,500
Placer Dome, Inc.
6.45% due 10/15/2035		315,000		289,844
Rio Tinto Finance USA, Ltd.
2.625% due 09/30/2008		140,000		139,812
5.875% due 07/15/2013		455,000		458,842
Vale Overseas, Ltd.
6.25% due 01/23/2017		525,000		525,159
6.875% due 11/21/2036		250,000		244,996
				5,628,403

 

The accompanying notes are an integral part of the financial statements.

297

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Office Furnishings & Supplies - 0.04%
ACCO Brands Corp.
7.625% due 08/15/2015		$	75,000	$	63,000
Interface, Inc.
9.50% due 02/01/2014			25,000		26,250
10.375% due 02/01/2010			300,000		315,000
					404,250
Paper - 0.39%
Boise Cascade LLC
7.125% due 10/15/2014			290,000		187,050
Celulosa Arauco y Constitucion SA
5.125% due 07/09/2013			80,000		79,835
8.625% due 08/15/2010			220,000		236,721
Domtar Corp.
5.375% due 12/01/2013			175,000		154,000
7.125% due 08/15/2015			450,000		434,250
9.50% due 08/01/2016			50,000		49,750
Georgia-Pacific Corp.
7.00% due 01/15/2015 (h)			475,000		442,938
7.125% due 01/15/2017 (h)			450,000		417,375
8.125% due 05/15/2011			300,000		300,000
International Paper Company
7.40% due 06/15/2014			650,000		659,194
Jefferson Smurfit Corp.
8.25% due 10/01/2012			200,000		174,000
NewPage Corp.
10.00% due 05/01/2012			350,000		339,500
12.00% due 05/01/2013			250,000		233,750
Rock-Tenn Company
8.20% due 08/15/2011			250,000		256,250
9.25% due 03/15/2016 (h)			225,000		230,625
					4,195,238
Petroleum Services - 0.23%
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015			100,000		99,500
7.75% due 05/15/2017			1,450,000		1,442,750
Complete Production Services, Inc.
8.00% due 12/15/2016			600,000		589,500
Key Energy Services, Inc.
8.375% due 12/01/2014 (h)			225,000		226,688
Premcor Refining Group, Inc.
6.75% due 02/01/2011			120,000		121,689
					2,480,127
Pharmaceuticals - 0.15%
Aventis SA, EMTN
4.25% due 09/15/2010	EUR		65,000		93,852
Eli Lilly & Company
5.55% due 03/15/2037		$	205,000		195,273
Hospira, Inc.
4.95% due 06/15/2009			80,000		80,188
Merck KGAA
4.75% due 11/26/2010	EUR		50,000		72,629
Omnicare, Inc.
6.75% due 12/15/2013		$	350,000		328,125
6.875% due 12/15/2015			600,000		564,000
Teva Pharmaceutical Finance LLC
5.55% due 02/01/2016			310,000		301,123
					1,635,190

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Pipelines - 0.19%
Buckeye Partners LP
6.05% due 01/15/2018	$	140,000	$	137,443
TEPPCO Partners LP
5.90% due 04/15/2013		300,000		300,331
7.55% due 04/15/2038		485,000		487,217
Texas Gas Transmission LLC
5.50% due 04/01/2013 (h)		1,120,000		1,107,932
	��			2,032,923
Publishing - 0.14%
Nielsen Finance LLC
10.00% due 08/01/2014		225,000		227,812
Sun Media Corp.
7.625% due 02/15/2013		325,000		307,938
TL Acquisitions, Inc. zero coupon due 07/15/2015 (b)(h)		500,000		357,500
Valassis Communications, Inc.
8.25% due 03/01/2015		675,000		561,938
				1,455,188
Railroads & Equipment - 0.17%
American Railcar Industries, Inc.
7.50% due 03/01/2014		600,000		555,000
Canadian National Railway Company
6.25% due 08/01/2034		249,000		249,045
Greenbrier Companies, Inc.
8.375% due 05/15/2015		400,000		368,000
Grupo Transportacion Ferroviaria Mexicana, SA de CV
9.375% due 05/01/2012		125,000		130,625
Norfolk Southern Corp.
5.59% due 05/17/2025		30,000		27,191
5.75% due 04/01/2018		95,000		94,250
7.25% due 02/15/2031		35,000		37,623
Union Pacific Corp.
3.875% due 02/15/2009		125,000		124,867
5.70% due 08/15/2018		205,000		194,407
				1,781,008
Real Estate - 0.41%
AMB Property LP, MTN
5.90% due 08/15/2013		45,000		43,995
6.30% due 06/01/2013		205,000		204,577
AvalonBay Communities, Inc., REIT, MTN
4.95% due 03/15/2013		60,000		56,958
6.125% due 11/01/2012		185,000		184,019
6.625% due 09/15/2011		265,000		268,344
BF Saul, REIT
7.50% due 03/01/2014		150,000		129,562
Camden Property Trust, REIT
4.375% due 01/15/2010		90,000		88,016
Developers Diversified Realty Corp., REIT
3.875% due 01/30/2009		30,000		29,617
Duke Realty LP
6.25% due 05/15/2013		230,000		226,810
Federal Realty Investment Trust
6.00% due 07/15/2012		135,000		133,219
Felcor Lodging LP, REIT
8.50% due 06/01/2011		250,000		241,250

 

The accompanying notes are an integral part of the financial statements.

298

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Real Estate (continued)
General Growth Properties, Inc.
3.98% due 04/15/2027 (h)		$	54,000	$	38,843
Hospitality Properties Trust
5.625% due 03/15/2017			225,000		174,436
Host Marriott LP, Series Q, REIT
6.75% due 06/01/2016			900,000		774,000
Kimco Realty Corp., MTN, REIT
4.904% due 02/18/2015			60,000		54,796
Lennar Corp.
7.625% due 03/01/2009			125,000		121,250
Mack-Cali Realty LP, REITS
5.80% due 01/15/2016			75,000		69,534
Reckson Operating Partnership, REIT
6.00% due 03/31/2016			210,000		179,169
Regency Centers LP, REIT
5.875% due 06/15/2017			120,000		109,391
Simon Property Group LP
5.30% due 05/30/2013			75,000		72,047
5.75% due 12/01/2015			445,000		438,752
Simon Property Group LP, REIT
4.60% due 06/15/2010			235,000		232,731
Ventas Realty LP/Ventas Capital Corp.
6.50% due 06/01/2016			470,000		446,500
Vornado Realty LP, REIT
4.50% due 08/15/2009			35,000		34,123
					4,351,939
Retail - 0.24%
Costco Wholesale Corp.
5.30% due 03/15/2012			180,000		188,366
Federated Retail Holdings, Inc.
5.35% due 03/15/2012			180,000		168,509
Ferrellgas Escrow LLC
6.75% due 05/01/2014			250,000		217,500
Home Depot, Inc.
3.75% due 09/15/2009			115,000		114,669
5.20% due 03/01/2011			155,000		154,711
JC Penney Company, Inc.
9.00% due 08/01/2012			400,000		431,570
Leslie’s Poolmart
7.75% due 02/01/2013			350,000		322,000
Sears Roebuck Acceptance
6.75% due 08/15/2011			175,000		168,236
7.00% due 02/01/2011			200,000		195,081
Sunstate Equipment Company LLC
10.50% due 04/01/2013 (h)			450,000		328,500
Target Corp.
5.875% due 07/15/2016			305,000		308,209
					2,597,351
Retail Grocery - 0.12%
Couche-Tard US LP
7.50% due 12/15/2013			650,000		606,125
Delhaize Group
5.625% due 06/27/2014	EUR		50,000		67,206
6.50% due 06/15/2017		$	100,000		100,585
Safeway, Inc.
4.125% due 11/01/2008			65,000		65,007

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Retail Grocery (continued)
The Kroger Company
8.05% due 02/01/2010		$	430,000	$	449,200
					1,288,123
Retail Trade - 0.46%
ACE Hardware Corp.
9.125% due 06/01/2016 (h)			925,000		832,500
Fortune Brands, Inc.
5.125% due 01/15/2011			70,000		70,207
GSC Holdings Corp.
8.00% due 10/01/2012			1,150,000		1,204,625
Home Depot, Inc.
5.40% due 03/01/2016			220,000		199,065
Neiman Marcus Group, Inc.
9.00% due 10/15/2015			450,000		437,625
10.375% due 10/15/2015			450,000		438,750
Target Corp.
7.50% due 08/15/2010			150,000		160,579
The Pantry, Inc.
7.75% due 02/15/2014			550,000		459,250
Walgreen Company
4.875% due 08/01/2013			380,000		383,519
Wal-Mart Stores, Inc.
4.75% due 01/29/2013	GBP		204,000		364,841
6.875% due 08/10/2009		$	315,000		326,708
					4,877,669
Sanitary Services - 0.30%
Allied Waste North America, Inc.
6.875% due 06/01/2017			525,000		517,125
7.25% due 03/15/2015			1,000,000		1,012,500
7.875% due 04/15/2013			425,000		434,563
Casella Waste Systems, Inc.
9.75% due 02/01/2013			750,000		742,500
Oakmont Asset Trust
4.514% due 12/22/2008 (h)			20,000		20,057
Waste Management, Inc.
6.10% due 03/15/2018			480,000		448,722
7.375% due 05/15/2029			15,000		14,245
					3,189,712
Semiconductors - 0.33%
Avago Technologies Finance
10.125% due 12/01/2013			375,000		403,594
Flextronics International, Ltd.
6.25% due 11/15/2014			125,000		115,312
Freescale Semiconductor, Inc.
6.6512% due 12/15/2014 (b)			300,000		221,250
8.875% due 12/15/2014			675,000		546,750
Freescale Semiconductor, Inc., PIK
9.125% due 12/15/2014			200,000		156,000
National Semiconductor Corp.
6.15% due 06/15/2012			640,000		653,208
NXP BV/NXP Funding LLC
5.5406% due 10/15/2013 (b)			475,000		369,313
9.50% due 10/15/2015			525,000		355,687
Spansion LLC
11.25% due 01/15/2016 (h)			200,000		125,000
STATS ChipPAC, Ltd.
6.75% due 11/15/2011			100,000		101,000

 

The accompanying notes are an integral part of the financial statements.

299

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Semiconductors (continued)
STATS ChipPAC, Ltd. (continued)
7.50% due 07/19/2010	$	500,000	$	512,500
				3,559,614
Software - 0.09%
Oracle Corp.
5.00% due 01/15/2011		710,000		727,636
Serena Software, Inc.
10.375% due 03/15/2016		125,000		115,312
SS&C Technologies, Inc.
11.75% due 12/01/2013		100,000		105,500
				948,448
Steel - 0.29%
ArcelorMittal
5.375% due 06/01/2013 (h)		1,065,000		1,044,555
Evraz Group SA
8.25% due 11/10/2015		100,000		93,000
8.875% due 04/24/2013		130,000		127,725
Gerdau Ameristeel Corp.
10.375% due 07/15/2011		150,000		155,625
GTL Trade Finance, Inc.
7.25% due 10/20/2017		125,000		126,112
Metals USA Holdings Corp., PIK
8.7913% due 07/01/2012		50,000		45,125
Metals USA, Inc.
11.125% due 12/01/2015		175,000		182,875
Ryerson, Inc.
12.00% due 11/01/2015 (h)		450,000		441,000
Steel Capital SA for OAO Severstal
9.75% due 07/29/2013		100,000		100,000
Steel Dynamics, Inc.
6.75% due 04/01/2015		140,000		130,550
Tube City IMS Corp.
9.75% due 02/01/2015		450,000		420,750
Usiminas Commercial, Ltd.
7.25% due 01/18/2018		225,000		233,438
				3,100,755
Telecommunications Equipment & Services - 1.11%
Broadview Networks Holdings, Inc.
11.375% due 09/01/2012		425,000		365,500
Citizens Communications Company
7.125% due 03/15/2019		400,000		346,000
Deutsche Telekom International Finance BV
8.50% due 06/15/2010		505,000		534,468
Digicel Group, Ltd.
8.875% due 01/15/2015 (h)		1,500,000		1,408,200
8.875% due 01/15/2015		140,000		131,432
Digicel, Ltd.
9.25% due 09/01/2012 (h)		775,000		794,375
Dycom Industries, Inc.
8.125% due 10/15/2015		275,000		257,125
Fairpoint Communications, Inc.
5.283% due 03/31/2014		500,000		425,030
13.125% due 04/01/2018 (h)		275,000		272,250
France Telecom SA
7.75% due 03/01/2011		570,000		607,365

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment & Services (continued)
GC Impsat Holdings I PLC
9.875% due 02/15/2017		$	50,000	$	46,375
GCI, Inc.
7.25% due 02/15/2014			475,000		420,375
Intelsat Corp.
9.25% due 06/15/2016			600,000		594,000
iPCS, Inc.
4.9256% due 05/01/2013 (b)			425,000		377,187
6.0506% due 05/01/2014 (b)			475,000		394,250
Level 3 Communications, Inc.
6.00% due 09/15/2009			87,000		83,955
6.00% due 03/15/2010			88,000		80,608
12.25% due 03/15/2013			375,000		382,500
Lucent Technologies, Inc.
6.50% due 01/15/2028			825,000		573,375
Nortel Networks, Ltd.
7.0406% due 07/15/2011 (b)			875,000		811,562
10.125% due 07/15/2013			75,000		69,750
Orascom Telecom Finance SCA
7.875% due 02/08/2014			110,000		100,925
7.875% due 02/08/2014			140,000		128,268
OTE PLC, GMTN
4.625% due 05/20/2016	EUR		100,000		133,384
SBC Communications, Inc.
5.625% due 06/15/2016		$	550,000		546,906
6.45% due 06/15/2034			355,000		339,194
Telesat Canada
11.00% due 11/01/2015			300,000		276,000
TELUS Corp.
5.95% due 04/15/2015	CAD		35,000		33,439
Verizon Global Funding Corp.
7.25% due 12/01/2010		$	110,000		116,583
7.75% due 12/01/2030			285,000		303,260
West Corp.
9.50% due 10/15/2014			425,000		362,313
Wind Acquisition Finance SA
10.75% due 12/01/2015 (h)			450,000		461,250
					11,777,204
Telephone - 1.23%
Alltel Corp.
6.50% due 11/01/2013			225,000		226,688
7.00% due 07/01/2012			1,175,000		1,207,312
AT&T Corp.
7.3 due 11/15/2011 (b)			150,000		160,190
AT&T, Inc.
3.0143% due 11/14/2008 (b)			100,000		100,037
4.375% due 03/15/2013	EUR		100,000		141,060
4.95% due 01/15/2013		$	450,000		449,938
5.30% due 11/15/2010			125,000		128,878
British Telecommunications PLC
5.15% due 01/15/2013			680,000		663,583
8.00% due 12/07/2016	GBP		150,000		295,742
British Telecommunications PLC, EMTN
5.25% due 06/23/2014	EUR		100,000		138,881
France Telecom SA, EMTN
7.25% due 01/28/2013			205,000		322,445

 

The accompanying notes are an integral part of the financial statements.

300

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telephone (continued)
KONINKLIJKE KPN NV, EMTN
5.75% due 03/18/2016	GBP		100,000	$	171,625
KONINKLIJKE KPN NV, MTN, Series G
4.75% due 01/17/2017	EUR		50,000		66,898
Nordic Telephone Company Holdings
8.25% due 05/01/2016 (h)			100,000		132,768
8.875% due 05/01/2016 (h)		$	850,000		818,125
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014			275,000		250,250
Qwest Corp.
6.0262% due 06/15/2013 (b)			125,000		115,625
7.50% due 10/01/2014			175,000		162,313
7.875% due 09/01/2011			100,000		99,250
8.875% due 03/15/2012			150,000		151,125
Royal KPN NV, EMTN
4.50% due 03/18/2013	EUR		80,000		111,119
Sprint Capital Corp.
6.90% due 05/01/2019		$	1,185,000		1,099,088
7.625% due 01/30/2011			520,000		520,000
8.375% due 03/15/2012			610,000		614,575
Sprint Nextel Corp.
3.2006% due 06/28/2010 (b)			105,000		97,419
6.00% due 12/01/2016			1,275,000		1,163,438
Telecom Italia Capital SA
4.00% due 01/15/2010			150,000		147,822
5.25% due 11/15/2013			315,000		294,515
Telecom Italia Finance SA, EMTN
6.875% due 01/24/2013	EUR		90,000		135,660
7.5 due 04/20/2011			64,000		97,175
Telefonica Emisiones SAU
5.984% due 06/20/2011		$	185,000		187,884
6.221% due 07/03/2017			275,000		272,344
Telefonica Emisiones SAU, EMTN
4.674% due 02/07/2014	EUR		50,000		70,285
Telefonos de Mexico SA de CV
4.50% due 11/19/2008		$	120,000		120,289
Valor Telecommunications Enterprise LLC
7.75% due 02/15/2015			225,000		227,484
Verizon Communications, Inc.
4.35% due 02/15/2013			645,000		629,403
5.25% due 04/15/2013			310,000		311,594
6.90% due 04/15/2038			260,000		257,448
Windstream Corp.
8.125% due 08/01/2013			325,000		321,750
8.625% due 08/01/2016			325,000		321,750
Windstream Regatta Holdings, Inc.
11.00% due 12/01/2017 (h)			450,000		261,000
					13,064,775
Tires & Rubber - 0.03%
Cooper-Standard Automotive, Inc.
8.375% due 12/15/2014			425,000		289,000
Tobacco - 0.09%
Imperial Tobacco Finance PLC, EMTN
4.375% due 11/22/2013	EUR		100,000		130,582
6.875% due 06/13/2012	GBP		49,000		88,044
Reynolds American, Inc.
6.50% due 07/15/2010		$	45,000		46,359

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Tobacco (continued)
Reynolds American, Inc. (continued)
7.25% due 06/01/2013		$	630,000	$	654,901
					919,886
Toys, Amusements & Sporting Goods - 0.02%
Hasbro, Inc.
6.30% due 09/15/2017			180,000		179,261
Transportation - 0.34%
Bombardier, Inc.
6.30% due 05/01/2014 (h)			575,000		552,000
6.75% due 05/01/2012 (h)			200,000		199,000
7.45% due 05/01/2034 (h)			375,000		358,125
8.00% due 11/15/2014			25,000		25,750
Bristow Group, Inc.
6.125% due 06/15/2013			425,000		399,500
7.50% due 09/15/2017			450,000		432,000
Burlington Northern Santa Fe Corp.
5.65% due 05/01/2017			268,000		264,554
6.15% due 05/01/2037			436,000		414,065
Canadian National Railway Company
6.375% due 11/15/2037			65,000		67,253
Canadian Pacific Railway Company
5.75% due 05/15/2013			340,000		338,285
CHC Helicopter Corp.
7.375% due 05/01/2014			350,000		364,000
FedEx Corp.
5.50% due 08/15/2009			215,000		217,163
					3,631,695
Trucking & Freight - 0.01%
Saint Acquisition Corp.
12.50% due 05/15/2017 (h)			300,000		110,250
Utility Service - 0.24%
Consumers Energy Company, Series F
4.00% due 05/15/2010			225,000		224,397
Consumers Energy Company, Series J
6.00% due 02/15/2014			160,000		162,483
PNM Resources, Inc.
9.25% due 05/15/2015			550,000		558,250
Public Service Company of New Mexico
4.40% due 09/15/2008			210,000		209,905
Public Service Electric & Gas Company
5.70% due 12/01/2036			355,000		337,413
Veolia Environnement
5.25% due 06/03/2013			510,000		511,650
6.00% due 06/01/2018			430,000		431,206
Veolia Environnement, EMTN
4.875% due 05/28/2013	EUR		50,000		71,934
4.875% due 05/28/2013			35,000		50,354
5.875% due 02/01/2012			30,000		44,747
					2,602,339
TOTAL CORPORATE BONDS (Cost $313,378,032)				$	300,505,803
CONVERTIBLE BONDS - 0.16%
Air Travel - 0.05%
Airtran Holdings, Inc.
7.00% due 07/01/2023		$	328,000		236,703

 

The accompanying notes are an integral part of the financial statements.

301

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
CONVERTIBLE BONDS (continued)
Air Travel (continued)
AMR Corp.
4.50% due 02/15/2024	$	312,000	$	292,110
				528,813
Automobiles - 0.01%
Ford Motor Company
4.25% due 12/15/2036		191,000		126,105
Cable & Television - 0.04%
Sinclair Broadcast Group, Inc.
3.00% due 05/15/2027		500,000		449,936
Cellular Communications - 0.03%
American Tower Corp.
3.00% due 08/15/2012		150,000		307,789
Coal - 0.03%
Peabody Energy Corp.
4.75% due 12/15/2066		200,000		256,068
TOTAL CONVERTIBLE BONDS (Cost $1,585,010)			$	1,668,711
MUNICIPAL BONDS - 0.29%
California - 0.02%
State of California
5.25% due 04/01/2034		100,000		112,234
5.50% due 11/01/2033		100,000		101,882
				214,116
District of Columbia - 0.01%
District of Columbia
4.75% due 06/01/2031		85,000		83,600
Florida - 0.03%
Orange County Florida Tourist Development
5.00% due 10/01/2018		330,000		350,582
Georgia - 0.05%
Atlanta Water & Wastewater Revenue
5.50% due 11/01/2017		220,000		241,186
State of Georgia
5.00% due 07/01/2019		245,000		267,462
				508,648
Illinois - 0.02%
Chicago Illinois Transit Authority, Series A
6.899% due 12/01/2040		245,000		259,847
Kansas - 0.01%
Kansas Development Finance Authority
5.501% due 05/01/2034		120,000		118,639
Maryland - 0.05%
County of Baltimore MD
5.00% due 02/01/2038		200,000		204,824
State of Maryland
5.00% due 08/01/2019		335,000		366,179
				571,003
New York - 0.03%
New York City Housing Development Corp.
6.42% due 11/01/2027		135,000		142,232
New York State Urban Development Corp.
5.50% due 03/15/2018		160,000		182,040
				324,272

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
MUNICIPAL BONDS (continued)
Oregon - 0.01%
State of Oregon
5.892% due 06/01/2027	$	60,000	$	61,537
Pennsylvania - 0.03%
Commonwealth of Pennsylvania
5.00% due 01/01/2018		240,000		261,626
West Virginia - 0.03%
Tobacco Settlement Finance Authority of West
Virginia, Tobacco Settlement Funded
7.467% due 06/01/2047		325,000		289,760
TOTAL MUNICIPAL BONDS (Cost $3,059,091)			$	3,043,630
COLLATERALIZED MORTGAGE OBLIGATIONS - 4.04%
Citigroup Mortgage Loan Trust Inc, Series 2004-UST1, Class A5
4.689% due 08/25/2034 (b)		621,114		570,400
American Tower Trust, Series 2007-1A, Class D
5.9568% due 04/15/2037 (h)		350,000		312,648
Banc of America Commercial Mortgage, Inc., Series 2003-1, Class A1
3.878% due 09/11/2036		266,688		261,287
Banc of America Commercial Mortgage, Inc., Series 2003-1, Class A2
4.648% due 09/11/2036		796,000		761,881
Banc of America Commercial Mortgage, Inc., Series 2005-3, Class A2
4.501% due 07/10/2043		640,000		631,876
Banc of America Mortgage Securities, Series 2004-A, Class 2A2
4.098% due 02/25/2034 (b)		200,467		185,987
Banc of America Mortgage Securities, Series 2004-D, Class 2A2
4.1947% due 05/25/2034 (b)		98,625		91,123
Banc of America Mortgage Securities, Series 2004-H, Class 2A2
4.7479% due 09/25/2034 (b)		206,809		193,124
Banc of America Mortgage Securities, Series 2004-I, Class 3A2
4.8507% due 10/25/2034 (b)		103,823		96,579
Banc of America Mortgage Securities, Series 2005-J, Class 2A1
5.0937% due 11/25/2035 (b)		405,813		371,716
Banc of America Mortgage Securities, Series 2005-J, Class 3A1
5.2359% due 11/25/2035 (b)		219,838		198,668
Bear Stearns Commercial Mortgage Securities, Series 1998-C1, Class A2
6.44% due 06/16/2030		4,469		4,466
Bear Stearns Commercial Mortgage Securities, Series 2002-TOP8, Class A2
4.83% due 08/15/2038		320,000		308,643
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A1
5.085% due 12/11/2040		585,388		585,240
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4
4.674% due 06/11/2041		578,000		529,825

 

The accompanying notes are an integral part of the financial statements.

302

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A1
4.498% due 09/11/2042	$	78,196	$	77,779
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class AAB
4.804% due 09/11/2042		462,000		443,400
Bear Stearns Commercial Mortgage Securities, Series 2005-T18, Class A1
4.274% due 02/13/2042 (b)		201,363		200,083
Bear Stearns Commercial Mortgage Securities, Series 2005-T20, Class A1
4.94% due 10/12/2042		19,134		19,110
Bear Stearns Commercial Mortgage Securities, Series 2006-PW12, Class A4
5.9021% due 09/11/2038 (b)		60,000		56,401
Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class AAB
5.53% due 09/11/2041		50,000		47,668
Bear Stearns Commercial Mortgage Securities, Series 2006-PWR12, Class A1
5.546% due 09/11/2038 (b)		151,545		151,120
Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class AAB
5.315% due 02/11/2044		500,000		460,481
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A1
5.282% due 06/11/2050		569,270		552,733
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A4
5.694% due 06/11/2050 (b)		50,000		45,118
Citigroup Commercial Mortgage Trust, Series 2008-C7, Class A1
5.271% due 12/12/2049		290,440		285,283
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AAB
5.608% due 10/15/2048		285,000		272,960
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A1
5.0468% due 07/15/2044		205,638		205,511
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.3994% due 07/15/2044 (b)		50,000		47,583
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class ASB
5.278% due 12/11/2049		45,000		41,574
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A1
5.935% due 05/10/2012		212,605		211,207
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A3
6.2205% due 03/10/2017 (b)		1,270,000		1,181,503
Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A1
5.54% due 09/15/2039		117,768		116,187
Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A1
4.771% due 09/15/2039		219,923		216,700
Credit Suisse Mortgage Capital Certificates, Series 2007-C1, Class A1
5.227% due 02/15/2040		256,057		252,639

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
CS First Boston Mortgage Securities Corp., Series 2004-C2, Class A1
3.819% due 05/15/2036	$	95,639	$	92,385
CS First Boston Mortgage Securities Corp., Series 2005-C2, Class A4
4.832% due 04/15/2037		575,000		533,402
DLJ Commercial Mortgage Corp., Series 1999-CG2,Class A1B
7.30% due 06/10/2032		528,952		535,541
Federal Home Loan Mortgage Corp., Series 2003-2586, Class NJ
4.50% due 08/15/2016		235,330		235,972
Federal Home Loan Mortgage Corp., Series 2003-2614, Class IH
4.50% IO due 05/15/2016		179,540		13,492
Federal Home Loan Mortgage Corp., Series 2003-2627, Class IE
4.50% IO due 04/15/2018		54,171		4,283
Federal Home Loan Mortgage Corp., Series 2003-2631, Class KI
4.50% IO due 01/15/2015		88,768		2,325
Federal Home Loan Mortgage Corp., Series 2003-2681, Class PC
5.00% due 01/15/2019		250,557		254,003
Federal Home Loan Mortgage Corp., Series 2003-2686, Class JG
5.50% due 04/15/2028		847,000		861,546
Federal Home Loan Mortgage Corp., Series 2003-41, Class YV
5.50% due 04/25/2014		232,939		239,019
Federal Home Loan Mortgage Corp., Series 2004-2844, Class PQ
5.00% due 05/15/2023		72,882		73,415
Federal Home Loan Mortgage Corp., Series 2004-2872, Class YB
5.00% due 06/15/2023		157,059		158,053
Federal Home Loan Mortgage Corp., Series 2004-2882, Class YB
5.00% due 10/15/2027		400,000		406,657
Federal Home Loan Mortgage Corp., Series 2005-2934, Class NB
5.00% due 01/15/2028		106,000		107,764
Federal Home Loan Mortgage Corp., Series 2005-R003, Class VA
5.50% due 08/15/2016		454,794		463,422
Federal Home Loan Mortgage Corp., Series 2006-3123, Class VB
6.00% due 09/15/2013		209,410		215,172
Federal Home Loan Mortgage Corp., Series 2006-3152, Class DA
6.00% due 09/15/2025		139,973		142,748
Federal Home Loan Mortgage Corp., Series 2006-3177, Class PA
6.00% due 12/15/2026		281,773		286,773
Federal Home Loan Mortgage Corp., Series 2006-3195, Class PN
6.50% due 08/15/2030		863,815		885,169
Federal Home Loan Mortgage Corp., Series 2006-R007, Class VA
6.00% due 09/15/2016		165,971		170,718

 

The accompanying notes are an integral part of the financial statements.

303

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp., Series 2568, Class KA
4.25% due 12/15/2021	$	266,081	$	262,611
Federal Home Loan Mortgage Corp., Series 2688, Class DE
4.50% due 02/15/2020		334,557		334,677
Federal Home Loan Mortgage Corp., Series 3354, Class PA
5.50% due 07/15/2028		677,460		691,263
Federal Home Loan Mortgage Corp., Series R005, Class AB
5.50% due 12/15/2018		463,246		466,793
Federal Home Loan Mortgage Corp., Series R006, Class AK
5.75% due 12/15/2018		564,374		570,665
Federal Home Loan Mortgage Corp., Series R013, Class AB
6.00% due 12/15/2021		226,679		229,768
Federal Home Loan Mortgage Corp., Stated Final, Series SF4, Class C
3.32% due 12/15/2011		41,431		41,318
Federal Home Loan Mortgage Corp., Strips, Series 1998-199, Class PO zero coupon PO due 08/01/2028		8,779		6,855
Federal National Mortgage Association, Series 2002-74, Class PJ
5.00% due 03/25/2015		104,780		104,695
Federal National Mortgage Association, Series 2002-84, Class VA
5.50% due 11/25/2013		165,921		169,516
Federal National Mortgage Association, Series 2003-32, ClassPG
5.00% due 10/25/2027		350,000		352,782
Federal National Mortgage Association, Series 2003-40, Class NI
5.50% IO due 11/25/2028		29,487		2,058
Federal National Mortgage Association, Series 2003-88, Class TE
4.50% due 11/25/2014		400,000		403,073
Federal National Mortgage Association, Series 2003-92, Class NM
3.50% due 04/25/2013		38,223		38,101
Federal National Mortgage Association, Series 2004-21, Class AC
4.00% due 05/25/2016		54,363		54,365
Federal National Mortgage Association, Series 2006-3136, Class PB
6.00% due 01/15/2030		411,000		422,385
Federal National Mortgage Association, Series 2006-B2, Class AB
5.50% due 05/25/2014		303,336		306,426
Federal National Mortgage Association, Strip, Series 319, Class 2
6.50% IO due 02/01/2032		32,662		8,967
GE Capital Commercial Mortgage Corp., Series 2001-1, Class A2
6.531% due 05/15/2033		465,000		475,286
GE Capital Commercial Mortgage Corp., Series 2005-C4, Class A1
5.082% due 11/10/2045		349,564		349,354

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
GMAC Commercial Mortgage Securities, Inc., Series 2001-C2, Class A2
6.70% due 04/15/2034	$	50,000	$	51,420
Government National Mortgage Association, Series 1997-16, Class PL
6.50% due 10/20/2027		322,000		331,673
Government National Mortgage Association, Series 1998-12, Class Z
6.50% due 05/20/2028		41,891		43,374
Government National Mortgage Association, Series 1998-6, Class EA
0.01% PO due 03/16/2028		32,417		26,152
Government National Mortgage Association, Series 2001-48, Class PC
6.50% due 10/20/2031		265,267		271,932
Government National Mortgage Association, Series 2001-56, Class PH
6.50% due 11/20/2031		238,019		246,050
Government National Mortgage Association, Series 2003-3, Class LM
5.50% due 02/20/2032		326,765		331,867
Government National Mortgage Association, Series 2003-49, Class C
4.485% due 10/16/2033 (b)		67,000		63,192
Government National Mortgage Association, Series 2004-1, Class 1
zero coupon PO due 07/20/2034		223,081		163,057
Government National Mortgage Association, Series 2004-108, Class A
3.999% due 05/16/2027		222,635		220,502
Government National Mortgage Association, Series 2004-43, Class A
2.822% due 12/16/2019		585,777		577,737
Government National Mortgage Association, Series 2004-43, Class D
4.994% due 03/16/2030 (b)		56,000		54,610
Government National Mortgage Association, Series 2004-44, Class PC
5.50% due 05/20/2031		688,000		700,927
Government National Mortgage Association, Series 2005-94, Class PB
5.50% due 12/20/2035		135,000		132,278
Government National Mortgage Association, Series 2007-77, Class B
4.314% due 10/16/2029 (b)		375,000		369,927
Government National Mortgage Association, Series 2008-8, Class A
3.612% due 11/16/2027		1,034,813		1,026,440
Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A3
4.344% due 06/10/2036		127,998		127,634
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A2
4.305% due 08/10/2042		780,000		773,182
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A3
4.569% due 08/10/2042 (b)		250,000		241,583
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class AAB
4.619% due 08/10/2042 (b)		146,000		140,695

 

The accompanying notes are an integral part of the financial statements.

304

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A1
5.233% due 03/10/2039	$	279,618	$	274,718
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4
5.444% due 03/10/2039		50,000		44,766
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4
5.553% due 04/10/2038 (b)		450,000		418,312
JP Morgan Mortgage Trust, Series 2005-A7, Class 3A1
5.3495% due 10/25/2035 (b)		1,016,217		903,246
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2001-CIB2, Class A2
6.244% due 04/15/2035		591,437		597,688
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3
6.26% due 03/15/2033		264,814		268,861
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2003-LN1, Class A1
4.134% due 10/15/2037		453,496		439,834
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class ASB
4.824% due 10/15/2042 (b)		621,000		596,621
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB14, Class A4
5.481% due 12/12/2044 (b)		65,000		60,070
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CB17, Class A1
5.279% due 12/12/2043		188,177		185,416
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A1
5.17% due 05/15/2047		229,441		226,382
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4
6.0071% due 06/15/2049 (b)		445,000		407,940
LB-UBS Commercial Mortgage Trust, Series 2003-C7, Class A3
4.559% due 09/15/2027 (b)		475,000		465,974
LB-UBS Commercial Mortgage Trust, Series 2004-C2, Class A2
3.246% due 03/15/2029		1,360,000		1,350,552
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class A4
4.742% due 02/15/2030		548,000		508,631
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A1
5.018% due 02/15/2031		319,697		317,966
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A4
5.156% due 02/15/2031		1,292,500		1,173,768
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3
5.43% due 02/15/2040		50,000		44,590
Morgan Stanley Capital I, Series 2006-T23, Class A4
5.984% due 08/12/2041		485,000		461,992
Morgan Stanley Capital I, Series 2007-HQ11, Class A4
5.447% due 02/12/2044 (b)		1,095,000		976,029

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Morgan Stanley Capital I, Series 2007-IQ14, Class A4
5.692% due 04/15/2049 (b)	$	45,000	$	40,692
Morgan Stanley Capital I, Series 2007-IQ15, Class A4
6.0769% due 06/11/2049 (b)		1,025,000		944,836
Morgan Stanley Capital I, Series 2007-T27, Class A1
5.606% due 06/11/2042		612,098		600,697
Morgan Stanley Capital I, Series 2007-T27, Class A2
5.803% due 06/13/2042 (b)		200,000		194,248
Morgan Stanley Capital I, Series 2007-T27, Class A4
5.6504% due 06/13/2042 (b)		600,000		544,772
Morgan Stanley Capital I, Series 2008-T29, Class A4
6.4579% due 01/11/2043 (b)		45,000		42,496
Morgan Stanley Dean Witter Capital I, Series 2002-TOP7, Class A1
5.38% due 01/15/2039		25,743		25,810
Morgan Stanley Dean Witter Capital I, Series 2002-TOP7, Class A2
5.98% due 01/15/2039		366,000		367,995
Morgan Stanley Capital I, Series 2006-T23, Class A1
5.682% due 08/12/2041		166,687		166,108
PNC Mortgage Acceptance Corp., Series 1999-CM1, Class A1B
7.33% due 12/10/2032 (b)		631,651		644,970
Vendee Mortgage Trust, Series 1996-3, Class 4
9.5958% due 03/15/2025 (b)		11,265		12,269
Wells Fargo Mortgage Backed Securities Trust, Series 2003-O, Class 5A1
4.8156% due 01/25/2034 (b)		529,786		496,267
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR2, Class 2A2
4.5484% due 03/25/2035 (b)		371,155		338,176
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR2, Class 3A1
4.932% due 03/25/2035 (b)		226,764		208,932
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR12, Class 1A1
6.0248% due 09/25/2036 (b)		1,260,609		1,044,860
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR16, Class A1
5.665% due 10/25/2036 (b)		954,495		818,607
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $44,176,595)			$	43,070,643
ASSET BACKED SECURITIES - 2.04%
Daimler Chrysler Auto Trust, Series 2008-A, Class A3A
3.70% due 06/08/2012		300,000		296,145
Capital One Prime Auto Receivables Trust, Series 2006-2, Class A4
4.94% due 07/15/2012		425,000		423,596
Citibank Credit Card Issuance Trust, Series 2006-A2, Class A2
4.85% due 02/10/2011		600,000		603,504
AmeriCredit Automobile Receivables Trust, Series 2006-RM, Class A3
5.53% due 01/06/2014		1,570,000		1,396,655

 

The accompanying notes are an integral part of the financial statements.

305

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
BankBoston Home Equity Loan Trust, Series 1998-2, Class A6
6.64% due 12/25/2028	$	52,399	$	43,638
Bay View Auto Trust, Series 2005-3, Class A4
5.01% due 06/25/2014		342,000		343,791
Cabela’s Master Credit Card Trust, Series 2005-1A, Class A1
4.97% due 10/15/2013 (h)		140,000		139,128
Capital Auto Receivables Asset Trust, Series 2006-SN1A, Class B
5.50% due 04/20/2010 (h)		275,000		268,262
Capital Auto Receivables Asset Trust, Series 2006-SN1A, Class A4A
5.32% due 03/20/2010 (h)		1,575,000		1,585,114
Capital Auto Receivables Asset Trust, Series 2006-SN1A, Class A4B
2.5806% due 03/20/2010 (b)(h)		325,000		323,743
Capital One Multi-Asset Execution Trust, Series 2003-C3, Class C3
4.7168% due 07/15/2016 (b)		40,000		34,610
Capital One Multi-Asset Execution Trust, Series 2003-C4, Class C4
6.00% due 08/15/2013		325,000		315,006
Capital One Multi-Asset Execution Trust, Series 2007-C3, Class C3
2.7569% due 04/15/2013		125,000		115,441
Capital One Multi-Asset Execution Trust, Series 2008-A1, Class A
3.2169% due 11/15/2012 (b)		1,100,000		1,094,448
Capital One Prime Auto Receivables Trust, Series 2006-1, Class A4
5.01% due 11/15/2011		260,000		260,434
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2002-2, Class 1M1
5.599% due 09/25/2031		21,408		17,141
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2002-4, Class 2A1
3.2119% due 10/25/2032 (b)		11,628		10,617
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2003-3, Class 1A6
3.717% due 10/25/2014		202,951		201,572
Citibank Credit Card Issuance Trust, Series 2007-A5, Class A5
5.50% due 06/22/2012		1,075,000		1,096,079
CNH Equipment Trust, Series 2007-A, Class A3
4.99% due 10/15/2010		303,682		305,473
CNH Equipment Trust, Series 2007-A, Class B
5.09% due 06/16/2014		295,000		276,405
Detroit Edison Securitization Funding LLC, Series 2001-1, Class A5
6.42% due 03/01/2015		450,000		474,720
Florida Power & Light Recovery Funding LLC, Series 2007-A, Class A2
5.044% due 08/01/2015		700,000		710,490
GE Capital Credit Card Master Note Trust, Series 2006-1, Class A
5.08% due 09/15/2012		340,000		340,770
GE Equipment Small Ticket LLC, Series 2005-1A, Class A4
4.51% due 12/22/2014 (h)		337,000		338,315

 

Spectrum Income Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Honda Auto Receivables Owner Trust, Series 2007-1, Class A3
5.10% due 03/18/2011	$	450,000	$	454,038
Household Automotive Trust, Series 2006-2, Class A4
5.67% due 06/17/2013		220,000		214,696
Hyundai Auto Receivables Trust, Series 2006-A, Class A4
5.26% due 11/15/2012		165,000		166,622
John Deere Owner Trust, Series 2005-A, Class A4
4.16% due 05/15/2012		34,216		34,291
John Deere Owner Trust, Series 2006-A, Class A4
5.39% due 06/17/2013		250,000		251,850
John Deere Owner Trust, Series 2008-A, Class A2
3.63% due 03/15/2011		450,000		449,412
John Deere Owner Trust, Series 2008-A, Class A3
4.18% due 06/15/2012		175,000		173,874
JP Morgan Auto Receivables Trust, Series 2007-A, Class A4
5.19% due 02/15/2014 (h)		240,000		240,144
M&I Auto Loan Trust, Series 2005-1, Class A4
4.86% due 03/21/2011		124,466		125,255
Marriott Vacation Club Owner Trust, Series 2006-1A, Class A
5.737% due 04/20/2028 (h)		571,379		557,728
Marriott Vacation Club Owner Trust, Series 2006-1A, Class B
5.827% due 04/20/2028 (h)		18,889		18,012
Marriott Vacation Club Owner Trust, Series 2006-2A, Class A
5.362% due 10/20/2028 (h)		201,451		186,617
MBNA Credit Card Master Note Trust, Series 2006-C3, Class C3
2.7569% due 10/15/2013 (b)		415,000		375,400
MBNA Credit Card Master Note Trust, Series 2005-A3, Class A3
4.10% due 10/15/2012		275,000		274,196
Nissan Auto Receivables Owner Trust, Series 2008-A, Class A3
3.89% due 08/15/2011		175,000		173,402
Nordstrom Private Label Credit Card Master Note Trust, Series 2007-1A, Class A
4.92% due 05/15/2013 (h)		350,000		348,247
Onyx Acceptance Owner Trust, Series 2005-A, ClassA4
3.91% due 09/15/2011		127,895		124,658
Peco Energy Transition Trust, Series 2000-A, Class A4
7.65% due 03/01/2010		500,000		520,297
Peco Energy Transition Trust, Series 2001-A, Class A1
6.52% due 12/31/2010		447,000		463,999
PP&L Transition Bond Company LLC, Series 1999-1, Class A8
7.15% due 06/25/2009		35,466		35,743
PSE&G Transition Funding LLC, Series 2001-1, Class A6
6.61% due 06/15/2015		281,000		298,679

 

The accompanying notes are an integral part of the financial statements.

306

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Reliant Energy Transport Bond Company, Series 2001-1, Class A4
5.63% due 09/15/2015		$	334,000	$	343,301
Residential Asset Mortgage Products, Inc., Series 2003-RZ2, Class A1
3.60% due 04/25/2033			23,909		21,941
SLM Student Loan Trust, Series 2008-4, Class A2
3.85% due 07/25/2016 (b)			675,000		674,964
Sovereign Bank Home Equity Loan Trust, Series 2000-1, Class A6
7.25% due 02/25/2015			4,839		3,915
Susquehanna Auto Lease Trust, Series 2006-1, Class A3
5.21% due 03/16/2009 (h)			17,850		17,865
Triad Auto Receivables Owner Trust, Series 2006-B, Class A3
5.41% due 08/12/2011			154,437		153,228
Triad Auto Receivables Owner Trust, Series 2006-B, Class A4
5.52% due 11/12/2012			500,000		477,390
USAA Auto Owner Trust, Series 2005-2, Class A4
4.17% due 02/15/2011			142,701		143,187
USAA Auto Owner Trust, Series 2007-1, Class A4
5.55% due 02/15/2013			775,000		787,824
USAA Auto Owner Trust, Series 2007-2, Class A3
4.90% due 02/15/2012			850,000		856,031
USAA Auto Owner Trust, Series 2008-1, Class A3
4.16% due 04/16/2012			375,000		374,357
Volkswagen Auto Loan Enhanced Trust, Series 2007-1, Class A3
5.20% due 01/20/2010			400,950		403,527
Volkswagen Auto Lease Trust, Series 2006-A, Class A4
5.54% due 04/20/2011			420,000		424,199
Wachovia Auto Loan Owner Trust, Series 2007-1, Class A3A
5.29% due 04/20/2012			350,000		348,252
Wachovia Auto Owner Trust, Series 2006-A, Class A4
5.38% due 03/20/2013			225,000		214,996
TOTAL ASSET BACKED SECURITIES (Cost $22,044,222)				$	21,747,234
SUPRANATIONAL OBLIGATIONS - 0.37%
Supranational - 0.37%
European Investment Bank
8.75% due 08/25/2017	GBP		320,000		737,970
European Investment Bank, EMTN
4.75% due 10/15/2017	EUR		965,000		1,435,628
Inter-American Development Bank
4.40% due 01/26/2026	CAD		750,000		669,745
International Bank for Reconstruction & Development, MTNG					��
9.75% due 08/02/2010	ZAR		900,000		114,462
International Finance Corp., MTN
7.50% due 02/28/2013	AUD		600,000		536,125
Queensland Treasury Corp., Series 17
6.00% due 09/14/2017			445,000		378,695

 

Spectrum Income Fund (continued)
		Shares or Principal Amount		Value
SUPRANATIONAL OBLIGATIONS (continued)
Supranational (continued)
Santa Fe de Bogota DC
0.0045% due 07/26/2028	COP		240,000,000	$	107,479
					3,980,104
TOTAL SUPRANATIONAL OBLIGATIONS
(Cost $4,040,019)				$	3,980,104
SHORT TERM INVESTMENTS - 5.42%
Bank of New York, Series CD
5.41% due 05/15/2009		$	300,000	$	300,899
Egypt Treasury Bills, Series 364
zero coupon due 11/04/2008	EGP		1,025,000		186,693
John Hancock Cash Investment Trust, 2.5657% (c)(i)		$	5,918,047		5,918,047
T. Rowe Price Reserve Investment Fund,
2.7528%			51,499,901		51,392,909
TOTAL SHORT TERM INVESTMENTS
(Cost $57,796,965)				$	57,798,548
REPURCHASE AGREEMENTS - 2.70%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $28,753,430 on 09/02/2008, collateralized by $28,610,000 Federal National Mortgage Association, 5.10% due 09/10/2009 (valued at $29,325,250, including interest)		$	28,748,000	$	28,748,000
TOTAL REPURCHASE AGREEMENTS
(Cost $28,748,000)				$	28,748,000
Total Investments (Spectrum Income Fund) (Cost $1,137,183,859) - 104.29%				$	1,111,006,077
Liabilities in Excess of Other Assets - (4.29)%					(45,686,156	)
TOTAL NET ASSETS - 100.00%				$	1,065,319,921

 

Strategic Bond Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 2.87%
Treasury Inflation Protected
Securities (d) - 1.99%
1.75% due 01/15/2028	$	1,482,679	$	1,389,316
2.00% due 01/15/2016 to 01/15/2026		5,510,550		5,420,087
2.375% due 01/15/2017		466,421		494,989
2.50% due 07/15/2016		714,879		765,367
2.625% due 07/15/2017		168,869		183,302
3.375% due 04/15/2032		382,032		473,719
3.875% due 04/15/2029		1,091,108		1,399,262
				10,126,042
U.S. Treasury Bonds - 0.40%
4.50% due 05/15/2038		100,000		101,156
6.125% due 08/15/2029 ****		350,000		428,285
6.375% due 08/15/2027		930,000		1,157,850

 

The accompanying notes are an integral part of the financial statements.

307

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS (continued)
U.S. Treasury Bonds (continued)
7.125% due 02/15/2023	$	280,000	$	363,147
				2,050,438
U.S. Treasury Notes - 0.43%
2.75% due 07/31/2010		1,040,000		1,048,450
2.875% due 06/30/2010		1,070,000		1,081,285
4.00% due 08/15/2018		30,000		30,457
				2,160,192
U.S. Treasury Strips - 0.05% zero coupon due 05/15/2030		630,000		232,483
TOTAL U.S. TREASURY OBLIGATIONS (Cost $14,085,098)			$	14,569,155
U.S. GOVERNMENT AGENCY OBLIGATIONS - 29.80%
Federal Home Loan Bank - 0.12%
3.625% due 05/29/2013		650,000		639,884
Federal Home Loan Mortgage Corp. - 3.47%
5.00% due 12/01/2034		136,336		131,697
5.125% due 04/18/2011		280,000		291,547
5.45% due 07/09/2010		180,000		181,462
5.50% due 11/01/2035 to 01/01/2038		14,322,504		14,139,878
5.50% TBA **		2,900,000		2,859,220
8.00% due 05/01/2010		167		167
				17,603,971
Federal National Mortgage Association - 24.21%
4.50% due 12/01/2099		3,650,000		3,385,945
5.00% due 08/01/2034 to 02/01/2036		5,158,757		4,984,857
5.00% TBA **		45,600,000		43,800,939
5.25% due 08/01/2012		220,000		203,024
5.268% due 11/01/2035 (b)		237,709		241,337
5.50% due 04/01/2036 to 08/01/2037		7,908,190		7,796,383
5.50% TBA **		49,320,000		48,688,087
6.00% due 04/18/2036 to 10/01/2037		8,125,360		8,224,498
6.00% TBA **		300,000		307,242
6.25% due 02/01/2011		270,000		257,712
6.50% due 10/01/2032 to 09/01/2037 (b)		4,631,531		4,772,072
7.50% due 07/01/2030 to 02/01/2031		8,539		9,169
8.00% due 07/01/2027 to 08/01/2027		39,060		41,824
8.80% due 01/25/2019		23,656		25,810
10.40% due 04/25/2019		6,456		7,033
5.00% due 10/15/2010		180,000		180,442
				122,926,374
Government National Mortgage Association - 2.00%
5.00% due 06/15/2033 to 08/15/2035		2,476,625		2,432,452
5.00% TBA **		700,000		683,157
6.00% due 01/15/2037		6,906,246		7,023,598
7.50% due 04/15/2022 to 10/15/2027		11,238		12,078
				10,151,285
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $149,380,930)			$	151,321,514

 

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS - 3.93%
Brazil - 1.67%
Federative Republic of Brazil
6.00% due 05/15/2015	BRL		633,000	$	628,633
6.00% due 05/15/2017			694,000		681,788
10.00% due 07/01/2010			12,360,000		7,186,127
10.00% due 01/01/2010			1,000		590
					8,497,138
Indonesia - 0.29%
Republic of Indonesia
11.00% due 09/15/2025	IDR		14,993,000,000		1,469,612
Italy - 0.10%
Republic of Italy
5.804% due 10/25/2032		$	440,000		485,432
Mexico - 0.28%
Government of Mexico
5.625% due 01/15/2017			684,000		690,498
6.75% due 09/27/2034			675,000		725,625
					1,416,123
Russia - 0.75%
Government of Russia
7.50% due 03/31/2030			3,423,860		3,822,363
Turkey - 0.84%
Republic of Turkey
6.875% due 03/17/2036			4,575,000		4,260,469
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $18,815,275)				$	19,951,137
CORPORATE BONDS - 45.38%
Aerospace - 0.09%
DRS Technologies, Inc.
6.625% due 02/01/2016			400,000		412,000
7.625% due 02/01/2018			25,000		26,312
					438,312
Air Travel - 0.47%
Continental Airlines, Inc.
6.541% due 09/15/2009			5,575		4,906
Continental Airlines, Inc., Series C
7.339% due 04/19/2014			140,000		105,000
DAE Aviation Holdings, Inc.
11.25% due 08/01/2015 (h)			2,360,000		2,277,400
					2,387,306
Aluminum - 0.37%
Novelis, Inc.
7.25% due 02/15/2015			2,035,000		1,887,463
Auto Parts - 0.30%
Keystone Automotive Operations, Inc.
9.75% due 11/01/2013			170,000		68,850
Visteon Corp.
8.25% due 08/01/2010			556,000		469,820
12.25% due 12/31/2016 (h)			1,437,000		984,345
					1,523,015
Auto Services - 0.57%
Hertz Corp.
8.875% due 01/01/2014			260,000		243,425
10.50% due 01/01/2016			1,410,000		1,244,325

 

The accompanying notes are an integral part of the financial statements.

308

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Auto Services (continued)
Penhall International Corp.
12.00% due 08/01/2014 (h)		$	1,965,000	$	1,414,800
					2,902,550
Automobiles - 2.00%
Ford Motor Company
6.625% due 10/01/2028			150,000		65,250
7.45% due 07/16/2031			5,985,000		3,082,275
8.875% due 01/15/2022			90,000		45,900
8.90% due 01/15/2032			100,000		53,000
General Motors Corp.
8.25% due 07/15/2023			580,000		282,750
8.375% due 07/15/2033			13,370,000		6,618,150
					10,147,325
Banking - 1.76%
Bank of America Corp.
5.42% due 03/15/2017			1,100,000		977,781
Glitnir Banki HF
6.33% due 07/28/2011 (h)			440,000		356,652
6.375% due 09/25/2012 (h)			580,000		446,538
6.693% due 06/15/2016 (b)(h)			620,000		373,286
7.451% due 09/14/2049 (b)(h)			100,000		56,583
HSBC Bank PLC zero coupon due 11/01/2011 (b)	RUB		13,382,000		531,775
HSBC Bank PLC, Series E, MTN zero coupon due 11/01/2011		$	208,835		185,370
HSBC Bank USA, BKNT
7.00% due 11/01/2011 (b)(h)			27,312		28,093
7.00% due 11/01/2011 (b)(h)			26,285		26,521
ICICI Bank, Ltd.
6.375% due 04/30/2022 (b)(h)			786,000		659,711
6.375% due 04/30/2022 (b)			340,000		288,769
Kaupthing Bank HF
7.125% due 05/19/2016 (h)			230,000		156,669
7.625% due 02/28/2015 (h)			1,280,000		947,631
RSHB Capital SA for OJSC Russian Agricultural Bank
6.299% due 05/15/2017 (h)			1,130,000		1,003,440
TuranAlem Finance BV
8.25% due 01/22/2037 (h)			1,490,000		1,054,175
8.25% due 01/22/2037			500,000		353,750
Wachovia Corp.
5.25% due 08/01/2014			1,740,000		1,481,238
					8,927,982
Broadcasting - 0.52%
News America, Inc.
5.30% due 12/15/2014			2,635,000		2,603,696
6.65% due 11/15/2037			50,000		48,202
					2,651,898
Building Materials & Construction - 0.58%
Associated Materials, Inc.
zero coupon, Step up to 11.25% on 03/01/2009 due 03/01/2014			2,645,000		1,772,150
K Hovnanian Enterprises, Inc.
11.50% due 05/01/2013 (h)			810,000		827,212

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Building Materials & Construction (continued)
NTK Holdings, Inc.
zero coupon due 03/01/2014	$	865,000	$	363,300
				2,962,662
Business Services - 0.61%
Affinion Group, Inc.
10.125% due 10/15/2013		425,000		418,625
11.50% due 10/15/2015		130,000		126,750
Allied Security Escrow Corp.
11.375% due 07/15/2011		207,000		218,644
Ceridian Corp., PIK
12.25% due 11/15/2015 (h)		110,000		97,763
Electronic Data Systems Corp.
7.125% due 10/15/2009		720,000		743,841
Sungard Data Systems, Inc.
9.125% due 08/15/2013		275,000		279,125
10.25% due 08/15/2015		730,000		735,475
U.S. Investigations Services, Inc.
10.50% due 11/01/2015 (h)		510,000		453,900
				3,074,123
Cable & Television - 1.65%
AT&T Broadband Corp.
8.375% due 03/15/2013		785,000		867,065
Charter Communications Holdings I LLC/Charter Communications Holdings I Capital Corp.
11.00% due 10/01/2015		2,362,000		1,812,835
Charter Communications Holdings II LLC/Charter Communications Holdings II Capital Corp.
10.25% due 10/01/2013		267,000		238,965
Charter Communications Holdings LLC
11.75 due 05/15/2011		2,000,000		1,320,000
12.125 due 01/15/2012		50,000		33,000
Charter Communications, Inc.
10.875% due 09/15/2014		380,000		399,000
Comcast Corp.
6.50% due 01/15/2015		460,000		467,025
6.50% due 01/15/2017		230,000		231,981
CSC Holdings, Inc.
6.75% due 04/15/2012		250,000		243,750
CSC Holdings, Inc., Series B
8.125% due 08/15/2009		325,000		329,875
8.125% due 07/15/2009		25,000		25,344
Echostar DBS Corp.
7.75% due 05/31/2015		1,030,000		983,650
Time Warner Entertainment Company LP
8.375% due 07/15/2033		430,000		460,967
Time Warner, Inc.
7.625% due 04/15/2031		955,000		955,596
				8,369,053
Cellular Communications - 0.13%
ALLTEL Communications, Inc., PIK
10.375% due 12/01/2017 (h)		130,000		149,500
Rogers Wireless, Inc.
8.00% due 12/15/2012		20,000		20,525
Rural Cellular Corp.
5.6819% due 06/01/2013 (b)		130,000		132,600
9.875% due 02/01/2010		60,000		61,500

 

The accompanying notes are an integral part of the financial statements.

309

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cellular Communications (continued)
True Move Company, Ltd.
10.75% due 12/16/2013 (h)	$	385,000	$	306,075
				670,200
Chemicals - 0.14%
Arco Chemical Company
9.80% due 02/01/2020		75,000		54,375
Georgia Gulf Corp.
10.75% due 10/15/2016		725,000		355,250
Huntsman International LLC
7.875% due 11/15/2014		75,000		69,750
Methanex Corp.
8.75% due 08/15/2012		125,000		131,250
Montell Finance Company BV
8.10% due 03/15/2027 (h)		150,000		76,500
				687,125
Coal - 0.04%
International Coal Group, Inc.
10.25% due 07/15/2014		180,000		182,700
Commercial Services - 0.44%
DI Finance/DynCorp International LLC, Series B
9.50% due 02/15/2013		350,000		347,375
Rental Service Corp.
9.50% due 12/01/2014		2,385,000		1,908,000
				2,255,375
Computers & Business Equipment - 0.02%
Activant Solutions, Inc.
9.50% due 05/01/2016		140,000		105,700
Construction Materials - 0.02%
Nortek, Inc.
8.50% due 09/01/2014		165,000		100,650
Containers & Glass - 0.09%
Graham Packaging Company
9.875% due 10/15/2014		220,000		193,050
Graphic Packaging International Corp.
9.50% due 08/15/2013		210,000		197,400
Plastipak Holdings, Inc.
8.50% due 12/15/2015 (h)		95,000		78,850
Radnor Holdings Corp.
11.00% due 03/15/2010		125,000		156
				469,456
Crude Petroleum & Natural Gas - 0.90%
Anadarko Finance Company, Series B
7.50% due 05/01/2031		730,000		759,193
Anadarko Petroleum Corp.
3.1762% due 09/15/2009 (b)		730,000		723,886
5.95% due 09/15/2016		50,000		48,725
Chesapeake Energy Corp.
6.25% due 01/15/2018		90,000		82,350
6.50% due 08/15/2017		90,000		83,700
6.875% due 01/15/2016		450,000		432,000
7.00% due 08/15/2014		200,000		198,000
7.25% due 12/15/2018		260,000		253,500
Conoco, Inc.
6.95% due 04/15/2029		1,020,000		1,115,784

 

Strategic Bond Fund (continued)
	Shares or Principal Amount			Value
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas (continued)
Mariner Energy, Inc.
7.50% due 04/15/2013	$	80,000		$	74,800
OPTI Canada, Inc.
7.875% due 12/15/2014		220,000			217,525
8.25% due 12/15/2014		125,000			124,844
PetroHawk Energy Corp.
9.125% due 07/15/2013		120,000	��		119,400
Quicksilver Resources, Inc.
7.125% due 04/01/2016		250,000			217,500
W&T Offshore, Inc.
8.25% due 06/15/2014 (h)		105,000			94,500
					4,545,707
Domestic Oil - 0.14%
Exco Resources, Inc.
7.25% due 01/15/2011		335,000			331,650
Whiting Petroleum Corp.
7.00% due 02/01/2014		375,000			356,250
					687,900
Drugs & Health Care - 0.19%
Humana, Inc.
6.30% due 08/01/2018		1,065,000			975,967
Educational Services - 0.28%
Education Management Corp.
8.75% due 06/01/2014		525,000			478,407
10.25% due 06/01/2016		1,105,000			968,256
					1,446,663
Electrical Utilities - 3.65%
AES Corp.
7.75% due 03/01/2014		2,813,000			2,798,935
7.75% due 10/15/2015		270,000			267,300
8.00% due 10/15/2017		2,215,000			2,181,775
9.375% due 09/15/2010		1,100,000			1,155,000
Dominion Resources, Inc.
5.70% due 09/17/2012		730,000			739,886
Edison Mission Energy
7.00% due 05/15/2017		280,000			268,100
7.20% due 05/15/2019		370,000			355,200
7.625% due 05/15/2027		130,000			117,325
7.75% due 06/15/2016		140,000			140,000
Energy Future Holdings Corp.
11.25% due 11/01/2017 (h)		3,710,000			3,663,625
Exelon Corp.
5.625% due 06/15/2035		170,000			146,100
FirstEnergy Corp.
6.45% due 11/15/2011		430,000			441,758
7.375% due 11/15/2031		675,000			724,168
Mirant Mid Atlantic LLC, Series B
9.125% due 06/30/2017		536,717			580,996
Orion Power Holdings, Inc.
12.00% due 05/01/2010		170,000			183,600
Pacific Gas & Electric Company
6.05% due 03/01/2034		490,000			470,477
TXU Corp., Series P
5.55% due 11/15/2014		1,000,000			779,811
TXU Corp., Series Q
6.50% due 11/15/2024		1,140,000			814,546

 

The accompanying notes are an integral part of the financial statements.

310

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
TXU Corp., Series R
6.55% due 11/15/2034	$	3,880,000	$	2,719,721
				18,548,323
Electronics - 0.12%
L-3 Communications Corp.
7.625% due 06/15/2012		550,000		559,625
L-3 Communications Corp., Series B
6.375% due 10/15/2015		75,000		71,813
		631,438
Energy - 0.58%
Dynegy Holdings, Inc.
7.75% due 06/01/2019		330,000		304,425
Mirant North America LLC
7.375% due 12/31/2013		300,000		297,750
NRG Energy, Inc.
7.25% due 02/01/2014		1,150,000		1,134,188
7.375% due 02/01/2016		910,000		898,625
VeraSun Energy Corp.
9.375% due 06/01/2017		120,000		70,200
9.875% due 12/15/2012		250,000		217,500
				2,922,688
Financial Services - 12.04%
Aiful Corp.
5.00% due 08/10/2010 (h)		440,000		372,819
American General Finance Corp.
6.90% due 12/15/2017		280,000		224,298
Bear Stearns Companies, Inc.
7.25% due 02/01/2018		2,650,000		2,745,744
CDX North America High Yield, Series 8-T1
7.625% due 06/29/2012 (h)		8,939,700		8,347,445
Citigroup, Inc.
5.00% due 09/15/2014		1,080,000		966,379
5.625% due 08/27/2012		1,090,000		1,039,538
5.875% due 05/29/2037		8,270,000		6,972,553
6.125% due 08/25/2036		50,000		40,813
6.875% due 03/05/2038		1,240,000		1,195,362
Countrywide Financial Corp.
6.25% due 05/15/2016		420,000		342,297
Credit Suisse USA, Inc.
5.50% due 08/16/2011		270,000		273,991
El Paso Performance-Linked Trust
7.75% due 07/15/2011 (h)		980,000		990,778
Ford Motor Credit Company
7.00% due 10/01/2013		80,000		57,961
7.375% due 10/28/2009		70,000		65,060
7.875% due 06/15/2010		1,875,000		1,616,304
Ford Motor Credit Company LLC
5.5381% due 01/13/2012 (b)		60,000		44,298
7.80% due 06/01/2012		700,000		519,865
8.0262% due 06/15/2011 (b)		836,000		654,299
9.875% due 08/10/2011		725,000		595,153
12.00% due 05/15/2015 (b)		9,990,000		8,450,471
General Motors Acceptance Corp.
5.85% due 01/14/2009		350,000		335,140
8.00% due 11/01/2031		14,195,000		7,656,059
GMAC LLC
6.00% due 04/01/2011		1,945,000		1,203,521

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Goldman Sachs Group LP
4.50% due 06/15/2010	$	580,000	$	582,053
Hawker Beechcraft Acquisition Company LLC
8.875% due 04/01/2015		680,000		678,300
9.75% due 04/01/2017		55,000		53,900
HSBC Finance Capital Trust IX
5.911% due 11/30/2035 (b)		1,650,000		1,314,172
International Lease Finance Corp.
5.875% due 05/01/2013		815,000		716,537
J.P. Morgan Chase & Company
6.625% due 03/15/2012		970,000		1,004,879
Lehman Brothers Holdings, Inc.
4.50% due 07/26/2010		775,000		734,506
Lehman Brothers Holdings, Inc., MTN
6.20% due 09/26/2014		290,000		271,655
6.75% due 12/28/2017		2,620,000		2,349,763
Leucadia National Corp.
8.125% due 09/15/2015		970,000		976,062
Merrill Lynch & Company, Inc.
5.70% due 05/02/2017		1,090,000		922,624
Morgan Stanley
3.235% due 10/18/2016 (b)		250,000		205,336
4.75% due 04/01/2014		2,280,000		2,001,895
Nell AF SARL
8.375% due 08/15/2015 (h)		182,000		107,380
Residential Capital LLC
9.625% due 05/15/2015 (h)		2,544,000		839,520
Shinsei Finance Cayman, Ltd.
6.418% due 01/29/2049 (b)(h)		850,000		508,724
TNK-BP Finance SA
6.625% due 03/20/2017		480,000		409,109
7.50% due 07/18/2016 (h)		1,330,000		1,190,350
7.875% due 03/13/2018 (h)		340,000		303,450
Wells Fargo Company
5.30% due 08/26/2011		1,250,000		1,273,268
				61,153,631
Food & Beverages - 0.29%
Dole Food Company, Inc.
7.25% due 06/15/2010		230,000		212,750
8.625% due 05/01/2009		1,200,000		1,185,000
Kroger Company
6.15% due 01/15/2020		60,000		59,656
6.40% due 08/15/2017		40,000		40,871
				1,498,277
Forest Products - 0.10%
Weyerhaeuser Company
6.75% due 03/15/2012		480,000		493,304
Funeral Services - 0.02%
Service Corp. International
7.50% due 04/01/2027		30,000		24,525
7.625% due 10/01/2018		65,000		62,400
				86,925
Furniture & Fixtures - 0.14%
Norcraft Companies LP
9.00% due 11/01/2011		400,000		398,000

 

The accompanying notes are an integral part of the financial statements.

311

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Furniture & Fixtures (continued)
Norcraft Holdings Capital
zero coupon, Step up to 9.75% on 09/01/2008 due 09/01/2012	$	350,000	$	311,500
				709,500
Gas & Pipeline Utilities - 2.16%
El Paso Corp.
7.00% due 06/15/2017		1,330,000		1,303,083
7.375% due 12/15/2012		475,000		480,162
7.75% due 01/15/2032		5,510,000		5,411,321
7.80% due 08/01/2031		1,783,000		1,760,713
7.875% due 06/15/2012		500,000		513,034
El Paso Natural Gas Company
8.375% due 06/15/2032		480,000		530,880
Kinder Morgan Energy Partners LP
5.00% due 12/15/2013		140,000		136,142
6.30% due 02/01/2009		100,000		100,755
6.75% due 03/15/2011		100,000		103,721
7.125% due 03/15/2012		20,000		20,953
Williams Companies, Inc.
7.625% due 07/15/2019		25,000		26,125
7.875% due 09/01/2021		275,000		288,750
8.75% due 03/15/2032		267,000		300,375
				10,976,014
Healthcare Products - 0.29%
Advanced Medical Optics, Inc.
7.50% due 05/01/2017		95,000		85,025
Biomet, Inc.
11.625% due 10/15/2017		1,200,000		1,261,500
Leiner Health Products, Inc.
11.00% due 06/01/2012 []		500,000		25,000
Universal Hospital Services, Inc.
6.3025% due 06/01/2015 (b)		50,000		46,500
8.50% due 06/01/2015		40,000		39,800
				1,457,825
Healthcare Services - 0.29%
DaVita, Inc.
7.25% due 03/15/2015		420,000		413,175
U.S. Oncology Holdings, Inc., PIK
7.9494% due 03/15/2012		215,000		172,000
Vanguard Health Holding Company I LLC
zero coupon, Step up to 11.25% on 10/01/2009 due 10/01/2015		300,000		269,250
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		640,000		628,800
				1,483,225
Holdings Companies/Conglomerates - 0.10%
Ashtead Capital, Inc.
9.00% due 08/15/2016 (h)		558,000		502,200
Leucadia National Corp.
7.125% due 03/15/2017		10,000		9,412
				511,612
Hotels & Restaurants - 0.06%
Buffets, Inc.
12.50% due 11/01/2014 []		195,000		1,950
CCM Merger, Inc.
8.00% due 08/01/2013 (h)		105,000		84,525

 

Strategic Bond Fund (continued)
			Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Hotels & Restaurants (continued)
El Pollo Loco, Inc.
11.75% due 11/15/2013	��		$	95,000	$	92,150
Sbarro, Inc.
10.375% due 02/01/2015				170,000		117,300
						295,925
Industrial Machinery - 0.08%
H&E Equipment Services, Inc.
8.375% due 07/15/2016				445,000		384,925
Insurance - 0.03%
American International Group, Inc., MTN
5.85% due 01/16/2018				160,000		134,720
International Oil - 2.31%
Corral Finans AB, PIK
4.2906% due 04/15/2010 (b)(h)				104,549		88,344
Gaz Capital for Gazprom
6.212% due 11/22/2016 (h)				1,070,000		965,247
6.51% due 03/07/2022 (h)				480,000		406,752
8.625% due 04/28/2034				800,000		830,000
Gazprom OAO, Series A7
6.72% due 10/29/2009 (m)		RUB		16,500,000		655,678
Gazprom OAO, Series A8
7.00% due 10/27/2011 (m)				5,500,000		209,188
KazMunaiGaz Finance Sub BV
8.375% due 07/02/2013 (h)			$	1,230,000		1,248,450
Kerr-McGee Corp.
6.95% due 07/01/2024				490,000		499,940
OAO Gazprom
9.625% due 03/01/2013				150,000		162,000
Pemex Project Funding Master Trust
6.625% due 06/15/2035				6,389,000		6,306,952
6.625% due 06/15/2035 (h)				140,000		138,202
Petroplus Finance, Ltd.
6.75% due 05/01/2014 (h)				110,000		99,550
7.00% due 05/01/2017 (h)				130,000		115,375
						11,725,678
Leisure Time - 0.23%
Boyd Gaming Corp.
6.75% due 04/15/2014				400,000		309,000
Inn of the Mountain Gods Resort & Casino
12.00% due 11/15/2010				190,000		135,375
MGM Mirage, Inc.
6.625% due 07/15/2015				20,000		15,950
7.625% due 01/15/2017				350,000		288,312
Mohegan Tribal Gaming Authority
6.875% due 02/15/2015				150,000		105,000
7.125% due 08/15/2014				150,000		110,250
River Rock Entertainment Authority
9.75% due 11/01/2011				25,000		23,250
Snoqualmie Entertainment Authority
6.875% due 02/01/2014 (b)(h)				45,000		32,963
Station Casinos, Inc.
7.75% due 08/15/2016				240,000		162,000
						1,182,100
Manufacturing - 1.08%
Sequa Corp.
11.75% due 12/01/2015 (h)				140,000		123,200

 

The accompanying notes are an integral part of the financial statements.

312

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Manufacturing (continued)
Sequa Corp. (continued)
13.50% due 12/01/2015 (h)	$	140,000	$	123,200
Tyco International Group SA
6.00% due 11/15/2013		1,040,000		1,033,856
6.125% due 11/01/2008		950,000		951,613
6.125% due 01/15/2009		20,000		20,034
6.375% due 10/15/2011		180,000		180,502
6.75% due 02/15/2011		360,000		367,092
Tyco International, Ltd. / Tyco International Finance SA
6.875% due 01/15/2021 (h)		2,760,000		2,662,158
				5,461,655
Medical-Hospitals - 1.20%
Community Health Systems, Inc.
8.875% due 07/15/2015		360,000		363,600
HCA, Inc.
6.375% due 01/15/2015		265,000		218,625
6.50% due 02/15/2016		313,000		260,572
7.50% due 12/15/2023		25,000		19,397
7.50% due 11/06/2033		30,000		22,875
9.125% due 11/15/2014		670,000		688,425
9.25% due 11/15/2016		1,140,000		1,172,775
9.625% due 11/15/2016		2,425,000		2,446,219
Tenet Healthcare Corp.
6.875% due 11/15/2031		1,125,000		810,000
7.375% due 02/01/2013		125,000		117,344
				6,119,832
Metal & Metal Products - 0.02%
Noranda Aluminium Holding Corp.
8.5775% due 11/15/2014 (b)		160,000		127,200
Mining - 1.05%
Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/2017		1,600,000		1,696,000
Vale Overseas, Ltd.
6.875% due 11/21/2036		3,117,000		3,054,610
Vedanta Resources PLC
8.75% due 01/15/2014 (h)		600,000		597,000
				5,347,610
Office Furnishings & Supplies - 0.05%
Interface, Inc.
9.50% due 02/01/2014		100,000		105,000
10.375% due 02/01/2010		150,000		157,500
				262,500
Paper - 0.89%
Abitibi-Consolidated Company of Canada
13.75% due 04/01/2011 (h)		690,000		724,500
Appleton Papers, Inc.
8.125% due 06/15/2011		15,000		13,725
Appleton Papers, Inc., Series B
9.75% due 06/15/2014		305,000		240,950
NewPage Corp.
9.0506% due 05/01/2012 (b)		1,705,000		1,598,438
NewPage Holding Corp.
9.9862% due 11/01/2013		1,271,696		1,179,498
Smurfit Capital Funding PLC
7.50% due 11/20/2025		200,000		174,000

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Paper (continued)
Verso Paper Holdings LLC / Verson Paper Inc., Series B
11.375% due 08/01/2016	$	710,000	$	603,500
				4,534,611
Petroleum Services - 0.32%
Belden & Blake Corp.
8.75% due 07/15/2012		725,000		737,687
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015		50,000		49,750
Complete Production Services, Inc.
8.00% due 12/15/2016		235,000		230,888
Enterprise Products Operating LP
8.375% due 08/01/2066 (b)		210,000		207,490
Key Energy Services, Inc.
8.375% due 12/01/2014 (h)		150,000		151,125
Pride International, Inc.
7.375% due 07/15/2014		210,000		213,150
SemGroup LP
8.75% due 11/15/2015 [] (h)		200,000		37,000
				1,627,090
Photography - 1.70%
Eastman Kodak Company
3.375% due 10/15/2033		4,210,000		3,957,400
7.25% due 11/15/2013		4,790,000		4,670,250
				8,627,650
Publishing - 0.41%
Dex Media West LLC
9.875% due 08/15/2013		75,000		57,750
Idearc, Inc.
8.00% due 11/15/2016		1,235,000		558,837
TL Acquisitions, Inc.
10.50% due 01/15/2015 (h)		1,740,000		1,487,700
				2,104,287
Railroads & Equipment - 0.22%
Grupo Transportacion Ferroviaria Mexicana,
SA de CV
9.375% due 05/01/2012		130,000		135,850
Kansas City Southern de Mexico SA de CV
7.375% due 06/01/2014		850,000		828,750
7.625% due 12/01/2013		50,000		49,000
Kansas City Southern Railway Company
7.50% due 06/15/2009		120,000		121,350
				1,134,950
Real Estate - 0.20%
Ashton Woods USA
9.50% due 10/01/2015		75,000		41,250
Forest City Enterprises, Inc.
7.625% due 06/01/2015		5,000		4,500
Realogy Corp.
10.50% due 04/15/2014		500,000		295,000
11.00% due 04/15/2014		200,000		94,000
12.375% due 04/15/2015		900,000		414,000
Ventas Realty LP/Ventas Capital Corp.
6.50% due 06/01/2016		35,000		33,250
6.75% due 04/01/2017		150,000		142,500
				1,024,500

 

The accompanying notes are an integral part of the financial statements.

313

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Retail - 0.23%
Eye Care Centers of America
10.75% due 02/15/2015	$	35,000	$	36,094
Michaels Stores, Inc.
10.00% due 11/01/2014		800,000		600,000
11.375% due 11/01/2016		100,000		64,000
Suburban Propane Partners LP
6.875% due 12/15/2013		365,000		332,150
Wal-Mart Stores, Inc.
5.80% due 02/15/2018		140,000		146,388
				1,178,632
Retail Trade - 1.03%
American Greetings Corp.
7.375% due 06/01/2016		15,000		14,250
Blockbuster, Inc.
9.00% due 09/01/2012		1,190,000		943,075
CVS Corp.
9.35% due 01/10/2023 (h)		1,700,000		1,615,000
CVS Pass-Through Trust
6.036% due 12/10/2028 (h)		452,094		417,355
Dollar General Corp., PIK
11.875% due 07/15/2017		350,000		330,750
Neiman Marcus Group, Inc.
10.375% due 10/15/2015		1,940,000		1,891,500
				5,211,930
Sanitary Services - 0.14%
Waste Management, Inc.
6.375% due 11/15/2012		730,000		732,705
Semiconductors - 0.02%
NXP BV/NXP Funding LLC
7.875% due 10/15/2014		120,000		98,400
9.50% due 10/15/2015		35,000		23,713
				122,113
Steel - 1.37%
Evraz Group SA
8.875% due 04/24/2013 (h)		1,050,000		1,021,125
GTL Trade Finance, Inc.
7.25% due 10/20/2017 (h)		2,390,000		2,406,486
Metals USA, Inc.
11.125% due 12/01/2015		450,000		470,250
Ryerson, Inc.
12.00% due 11/01/2015 (h)		2,845,000		2,788,100
Steel Dynamics, Inc.
7.375% due 11/01/2012		110,000		108,900
Tube City IMS Corp.
9.75% due 02/01/2015		155,000		144,925
				6,939,786
Telecommunications Equipment & Services - 0.60%
Citizens Communications Company
7.875% due 01/15/2027		200,000		172,000
Deutsche Telekom International Finance BV
5.75% due 03/23/2016		430,000		413,099
Hawaiian Telcom Communications, Inc., Series B
12.50% due 05/01/2015		110,000		19,250
Intelsat Bermuda, Ltd.
11.25% due 06/15/2016		510,000		534,863

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment & Services (continued)
Level 3 Financing, Inc.
9.25% due 11/01/2014	$	460,000	$	422,050
Royal KPN NV
8.00% due 10/01/2010		580,000		614,304
VIP Finance Ireland, Ltd. for OJSC Vimpel
Communications
8.375% due 04/30/2013 (h)		880,000		850,515
				3,026,081
Telephone - 0.90%
Cincinnati Bell Telephone Company
6.30% due 12/01/2028		95,000		72,912
Nordic Telephone Company Holdings
8.875% due 05/01/2016 (h)		470,000		452,375
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		306,000		278,460
Qwest Corp.
6.0262% due 06/15/2013 (b)		90,000		83,250
Sprint Capital Corp.
8.375% due 03/15/2012		1,750,000		1,763,125
Telecom Italia Capital SA
5.25% due 10/01/2015		500,000		450,659
Verizon Florida LLC, Series F
6.125% due 01/15/2013		295,000		300,647
Virgin Media, Inc.
9.125% due 08/15/2016		950,000		904,875
Windstream Corp.
8.625% due 08/01/2016		255,000		252,450
				4,558,753
Tobacco - 0.09%
Alliance One International, Inc.
8.50% due 05/15/2012		50,000		46,875
11.00% due 05/15/2012		390,000		396,825
				443,700
Travel Services - 0.01%
Expedia Inc.
8.50% due 07/01/2016 (h)		30,000		29,175
Trucking & Freight - 0.05%
Saint Acquisition Corp.
10.5544% due 05/15/2015 (b)(h)		160,000		56,000
12.50% due 05/15/2017 (h)		485,000		178,238
				234,238
TOTAL CORPORATE BONDS (Cost $263,737,073)			$	230,444,240
COLLATERALIZED MORTGAGE OBLIGATIONS - 9.26%
Banc of America Commercial Mortgage, Inc., Series 2006-1, Class A4
5.372% due 09/10/2045 (b)		340,000		312,695
Bear Stearns Structured Products Inc., Series 2007-EMX1, Class A1
3.4719% due 03/25/2037 (b)(h)		3,944,999		3,805,740
Bear Stearns Structured Products Inc., Series 2007-R11, Class A1A
3.0719% due 09/27/2037 (b)(h)		4,586,056		4,368,219

 

The accompanying notes are an integral part of the financial statements.

314

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Commercial Mortgage Asset Trust, Series 1999-C1, Class C
7.35% due 01/17/2032	$	295,000	$	312,060
Commercial Mortgage Pass-Through Certificates, Series 2001-J2A, Class A1
5.447% due 07/16/2034 (h)		259,653		259,617
Countrywide Alternative Loan Trust, Series 2006-OA9, Class 1A1
2.6706% due 07/20/2046 (b)		1,981,318		1,154,107
Countrywide Alternative Loan Trust, Series 2006-OA9, Class 2A1B
2.6706% due 07/20/2046 (b)		1,333,408		769,600
Countrywide Home Loans, Series 2006-HYB3, Class 2A1A
5.7062% due 04/20/2036 (b)		118,310		91,914
Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class A4
5.609% due 02/15/2039 (b)		1,675,000		1,560,542
First Boston Mortgage Securities Corp., Series D
10.965% IO due 05/25/2017		9,235		2,170
First Union National Bank Commercial Mortgage, Series 2000-C1
0.8123% IO due 05/17/2032 (b)		12,633,288		169,980
Freddie Mac, Series 3330, Class VA
5.00% due 06/15/2018		275,215		272,019
GMAC Mortgage Corp Loan Trust, Series 2004-AR1, Class 24A
5.0528% due 06/25/2034		752,710		513,495
Green Tree Financial Corp., Series 1997-6, Class A8
7.07% due 01/15/2029		369,402		367,824
GSMPS Mortgage Loan Trust, Series 2005-RP2, Class 1AF
2.8219% due 03/25/2035 (b)(h)		742,066		679,468
GSR Mortgage Loan Trust, Series 2004-7, Class 4A1
4.8419% due 06/25/2034 (b)		707,506		610,567
GSRPM Mortgage Loan Trust, Series 2003-1, Class A3
2.9719% due 01/25/2032 (b)		81,818		52,950
Harborview Mortgage Loan Trust, Series 2007-7, Class 2A1A
3.4719% due 11/25/2047 (b)		3,792,495		2,289,947
Impac CMB Trust, Series 2003-4, Class 1A1
3.1119% due 10/25/2033 (b)		48,896		30,160
IndyMac Index Mortgage Loan Trust, Series 2005-AR14, Class 2A1A
2.7719% due 08/25/2035 (b)		1,244,688		774,014
IndyMac Index Mortgage Loan Trust, Series 2006-AR6, Class 2A1A
2.6719% due 06/25/2047 (b)		3,454,720		2,120,102
IndyMac Index Mortgage Loan Trust, Series 2007-AR15, Class 2A1
5.9824% due 08/25/2037 (b)		2,497,537		1,608,493
Indymac Index Mortgage Loan Trust, Series 2007-AR5, Class 2A1
6.1064% due 05/25/2037 (b)		1,849,047		1,186,049
J.P. Morgan Chase Commercial Mortgage Securities Corp, Series 2006-CB15, Class A4
5.814% due 06/12/2043 (b)		2,370,000		2,228,903

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
J.P. Morgan Mortgage Trust, Series 2005-A6, Class 7A1
4.9621% due 08/25/2035 (b)	$	97,281	$	89,453
Luminent Mortgage Trust, Series 2006-4, Class A1A
2.6619% due 05/25/2046 (b)		1,616,463		1,017,909
Master Adjustable Rate Mortgages Trust, Series 2007-R5, Class A1
5.6529% due 11/25/2035 (b)		1,503,540		1,413,779
Master Adjustable Rate Mortgages Trust., Series 2007-3, Class 12A1
2.6719% due 05/25/2047 (b)		4,017,751		2,486,225
Master Adjustable Rate Mortgages Trust., Series 2006-2, Class 3A1
4.849% due 01/25/2036 (b)		136,376		124,835
Master Adjustable Rate Mortgages Trust., Series 2006-OA1, Class 1A1
2.6819% due 04/25/2046 (b)		2,513,058		1,617,883
MASTR Asset Securitization Trust, Series 2003-6, Class 1A1
5.50% due 07/25/2033		1,192,539		1,112,851
Merit Securities Corp., Series 11PA, Class B2
3.96% due 09/28/2032 (b)(h)		375,942		260,944
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4
5.8412% due 05/12/2039 (b)		970,000		909,960
Morgan Stanley Mortgage Loan Trust, Series 2004-8AR, Class 4A1
5.3624% due 10/25/2034 (b)		626,771		541,551
Novastar Mortgage-Backed Notes, Series 2006-MTA1, Class 2A1A
2.6619% due 09/25/2046 (b)		1,551,400		960,622
Prime Mortgage Trust, Series 2006-DR1, Class 2A2
6.00% due 05/25/2035 (h)		1,922,036		1,635,007
Structured Asset Mortgage Investments, Inc., Series 2005-AR3, Class 2A1
6.3547% due 08/25/2035 (b)		112,820		86,133
Structured Asset Mortgage Investments, Inc., Series 2006-AR6, Class 1A3
2.6619% due 07/25/2046 (b)		1,801,411		866,805
Thornburg Mortgage Securities Trust, Series 2006-1, Class A3
2.6419% due 01/25/2046 (b)		838,481		831,597
Thornburg Mortgage Securities Trust, Series 2006-3, Class A2
2.5769% due 05/25/2046 (b)		2,004,667		1,923,530
Thornburg Mortgage Securities Trust, Series 2006-3, Class A3
2.5819% due 06/25/2046 (b)		2,216,371		2,191,788
Thornburg Mortgage Securities Trust, Series 2007-4, Class 2A1
6.2165% due 09/25/2037 (b)		1,553,671		1,358,373
Thornburg Mortgage Securities Trust, Series 2007-4, Class 3A1
6.2155% due 09/25/2037 (b)		1,479,431		1,292,290
WaMu Mortgage Pass-Through Certificates, Series 2005-AR17, Class A1A1
2.7419% due 12/25/2045 (b)		1,253,010		778,905
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $58,507,184)			$	47,041,075

 

The accompanying notes are an integral part of the financial statements.

315

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES - 5.38%
ACE Securities Corp., Series 2006-GP1, Class A
2.6019% due 02/25/2031 (b)	$	1,162,125	$	904,453
Amortizing Residential Collateral Trust, Series 2002-BC6, Class M2
4.2719% due 08/25/2032 (b)		64,352		22,518
Asset Backed Securities Corp., Series 2003-HE2, Class M2
5.3169% due 04/15/2033 (b)		49,078		32,623
Bear Stearns Asset Backed Securities Inc., Series 2003-ABF1, Class A
2.8419% due 01/25/2034 (b)		52,756		39,612
Bear Stearns Asset Backed Securities Inc., Series 2007-SD1, Class 1A2A
6.00% due 10/25/2036		3,003,625		2,649,762
Bear Stearns Asset Backed Securities Inc., Series 2007-SD1, Class 1A3A
6.50% due 10/25/2036		2,924,291		2,314,760
Bear Stearns Asset Backed Securities Trust, Series 2007-HE6, Class 1A1
3.7219% due 08/25/2037 (b)		1,973,155		1,688,281
Countrywide Asset-Backed Certificates, Series 2004-5, Class M4
3.7219% due 06/25/2034 (b)		187,701		80,561
Ellington Loan Acquisition Trust, Series 2007-1, Class A2A1
3.4719% due 05/25/2037 (b)(h)		2,077,447		1,912,294
Ellington Loan Acquisition Trust, Series 2007-1, Class A2C
3.7219% due 05/25/2037 (b)(h)		2,300,000		1,259,444
EMC Mortgage Loan Trust, Series 2003-B, Class A1
3.0219% due 11/25/2041 (b)(h)		229,521		223,991
GSAMP Trust, Series 2006-S4, Class A1
2.5619% due 05/25/2036 (b)		546,959		252,836
IndyMac Seconds Asset Backed Trust, Series 2006-A, Class A
2.6019% due 06/25/2036 (b)		1,474,794		417,933
Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-H1, Class 2A1
3.9719% due 10/25/2037 (b)		4,061,799		3,449,991
Mid State Trust, Series 6, Class A1
7.34% due 07/01/2035		543,269		552,086
Morgan Stanley Mortgage Loan Trust, Series 2006-4SL, Class A1
2.6219% due 03/25/2036 (b)		896,566		297,550
Nelnet Student Loan Trust, Series 2008-4, Class A4
4.28% due 04/25/2024 (b)		810,000		783,801
RAAC Series, Series 2006-RP2, Class A
2.7219% due 02/25/2037 (b)(h)		1,186,798		948,857
RAAC Series, Series 2007-RP3, Class A
2.8519% due 10/25/2046 (b)		1,874,163		1,222,599
Residential Asset Mortgage Products Inc., Series 2003-RS4, Class AIIB
3.1319% due 05/25/2033 (b)		39,380		23,287
Residential Funding Mortgage Securities II Inc, Series 2006-HI1, Class A1
2.5819% due 02/25/2036 (b)		32,856		32,609
SACO I Trust, Inc., Series 2006-5, Class 1A
2.6219% due 04/25/2036 (b)		1,909,469		426,874
SACO I Trust, Inc., Series 2006-5, Class 2A3
2.6519% due 05/25/2036 (b)		1,490,000		218,507

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
SACO I Trust, Inc., Series 2006-6, Class A
2.6019% due 06/25/2036 (b)	$	1,358,056	$	297,240
Sail Net Interest Margin Notes, Series 2004-2A, Class A
5.50% due 03/27/2034 (h)		23,428		2
Securitized Asset Backed Receivables LLC, Series 2007-BR2, Class A2
2.7019% due 02/25/2037 (b)		3,641,347		1,954,424
SLM Student Loan Trust, Series 2006-5, Class A2
2.79% due 07/25/2017 (b)		1,156,281		1,153,106
Structured Asset Securities Corp., Series 2006-ARS1, Class A1
2.5819% due 02/25/2036 (b)(h)		1,494,794		338,585
Structured Asset Securities Corp., Series 2007-TC1, Class A
2.7719% due 04/25/2031 (b)(h)		3,669,090		2,750,647
Structured Asset Securities Corp., Series 2008-BC4, Class A3
2.7219% due 11/25/2037 (b)		1,230,051		1,072,204
TOTAL ASSET BACKED SECURITIES (Cost $40,805,636)			$	27,321,437
SUPRANATIONAL OBLIGATIONS - 0.19%
Venezuela - 0.19%
Corporacion Andina de Fomento, Series EXCH
6.875% due 03/15/2012		916,000		961,219
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $984,820)			$	961,219
COMMON STOCKS - 0.00%
Household Products - 0.00%
Home Interiors *		674,617		6,746
TOTAL COMMON STOCKS (Cost $183,738)			$	6,746
PREFERRED STOCKS - 0.74%
Automobiles - 0.17%
General Motors Corp., Series C, 6.25%		76,275		866,484
Financial Services - 0.57%
Federal Home Loan Mortgage Corp., Serie V, 5.57%		121,625		1,155,437
Federal Home Loan Mortgage Corp., Series Z, 8.375%		56,575		794,879
Federal National Mortgage Association, Series S, 8.25%		39,250		563,238
Resona Preferred Global Securities (Cayman), Ltd., 7.191% * (b)(h)		440,000		376,161
				2,889,715
TOTAL PREFERRED STOCKS (Cost $6,827,540)			$	3,756,199
TERM LOANS - 2.80%
Auto Services - 0.36%
Hertz Corp.
6.75% due 01/21/2012 (b)		1,991,539		1,818,275
Business Services - 0.23%
First Data Corp.
5.551% due 10/15/2014 (b)		1,250,550		1,147,242

 

The accompanying notes are an integral part of the financial statements.

316

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
TERM LOANS (continued)
Commercial Services - 0.28%
Aramark Corp. TL Strip
4.571% due 01/31/2014 (b)(l)		$	1,500,000	$	1,422,705
Electrical Utilities - 0.54%
Calpine Corp.
8.60% due 03/29/2009 (b)			2,985,000		2,769,423
Food & Beverages - 0.28%
Aramark Corp.
7.475% due 01/31/2014 (b)			1,399,945		1,327,805
Aramark Corp., Tranche B
0.0001% due 01/31/2014 (b)			100,055		94,900
					1,422,705
Medical-Hospitals - 0.38%
Community Health Systems, Inc., Tranche B
7.51% due 07/02/2014 (b)(l)			2,017,562		1,906,313
Paper - 0.38%
Georgia Pacific
4.446% due 12/23/2013 (b)			2,067,068		1,951,871
Semiconductors - 0.35%
Freescale Semiconductor
4.214% due 12/01/2013 (b)			1,989,899		1,778,930
TOTAL TERM LOANS (Cost $13,669,578)				$	14,217,464
OPTIONS - 0.01%
Put Options - 0.01%
Eurodollar Futures
Expiration 10/10/2008 at $96.125 *			562,500		51,750
Expiration 09/15/2008 at $97.375 *			20,000		4,050
					55,800
TOTAL OPTIONS (Cost $51,890)				$	55,800
REPURCHASE AGREEMENTS - 14.95%
Merrill Lynch Tri-Party Repurchase Agreement dated 08/29/2008 at 2.06% to be repurchased at $75,917,373 on 09/02/2008, collateralized by $73,209,000 Federal National Mortgage Association, 6.318% due 06/15/2027 (valued at $77,418,000, including interest)		$	75,900,000	$	75,900,000
TOTAL REPURCHASE AGREEMENTS (Cost $75,900,000)				$	75,900,000
SHORT TERM INVESTMENTS - 2.38%
Bank Negara Malaysia Monetary Notes, Series 1208 zero coupon due 09/04/2008	MYR		95,000	$	27,987
Bank Negara Malaysia Monetary Notes, Series 1308 zero coupon due 11/27/2008			30,000		8,771
Bank Negara Malaysia Monetary Notes, Series 2008 zero coupon due 10/21/2008			1,946,000		544,238
Bank Negara Malaysia Monetary Notes, Series 2108 zero coupon due 09/25/2008			70,000		20,584
Bank Negara Malaysia Monetary Notes, Series 2508 zero coupon due 11/13/2008			5,524,000		1,616,878

 

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
SHORT TERM INVESTMENTS (continued)
Bank Negara Malaysia Monetary Notes, Series 2608 zero coupon due 11/25/2008	MYR		1,800,000	$	526,214
Bank Negara Malaysia Monetary Notes, Series 3308 zero coupon due 10/07/2008			147,000		43,123
Bank Negara Malaysia Monetary Notes, Series 3508 zero coupon due 02/17/2009			100,000		28,999
Bank Negara Malaysia Monetary Notes, Series 3707 zero coupon due 09/04/2008			30,000		8,819
Bank Negara Malaysia Monetary Notes, Series 6208 zero coupon due 09/16/2008			73,000		21,454
Bank Negara Malaysia Monetary Notes, Series 7208 zero coupon due 10/07/2008			60,000		17,621
Bank Negara Malaysia Monetary Notes, Series 8408 zero coupon due 10/28/2008			1,220,000		357,642
Egypt Treasury Bills, Series 364 zero coupon due 04/21/2009	EGP		1,225,000		217,434
Egypt Treasury Bills, Series 364 zero coupon due 10/28/2008 to 11/25/2008			27,200,000		4,999,694
Federal National Mortgage Association Discount Notes zero coupon due 12/15/2008 ****		$	3,677,000		3,657,696
TOTAL SHORT TERM INVESTMENTS (Cost $12,027,508)				$	12,097,154
Total Investments (Strategic Bond Fund) (Cost $654,976,270) - 117.69%				$	597,643,140
Liabilities in Excess of Other Assets - (17.69)%					(89,848,241	)
TOTAL NET ASSETS - 100.00%				$	507,794,899

 

Strategic Income Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 2.84%
U.S. Treasury Bonds - 0.76%
8.125% due 08/15/2019	$	930,000	$	1,258,770
9.25% due 02/15/2016		1,635,000		2,246,464
				3,505,234
U.S. Treasury Notes - 2.08%
4.25% due 11/15/2013		2,630,000		2,775,060
4.75% due 05/15/2014		3,445,000		3,736,750
4.875% due 08/15/2016		2,875,000		3,128,584
				9,640,394
TOTAL U.S. TREASURY OBLIGATIONS (Cost $12,149,121)			$	13,145,628
U.S. GOVERNMENT AGENCY OBLIGATIONS - 11.99%
Federal National Mortgage Association - 11.99%
5.00% due 01/01/2023 to 06/01/2023		9,864,304		9,783,000
5.375% due 06/12/2017		7,265,000		7,659,409
5.50% due 10/01/2036 to 09/01/2037		16,212,930		16,030,452
6.00% due 08/01/2022 to 10/01/2037		15,252,664		15,502,583

 

The accompanying notes are an integral part of the financial statements.

317

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
Federal National Mortgage Association (continued)
6.50% due 11/01/2036 to 08/01/2037		$	6,378,249	$	6,571,528
					55,546,972
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $54,858,755)				$	55,546,972
FOREIGN GOVERNMENT OBLIGATIONS - 14.33%
Austria - 0.17%
Republic of Austria
6.00% due 09/26/2008	NZD		1,120,000		782,612
Canada - 4.11%
Province of Ontario
4.40% due 03/08/2016	CAD		4,325,000		4,165,939
4.50% due 03/08/2015			3,085,000		3,001,207
4.75% due 06/02/2013			4,610,000		4,543,008
6.25% due 06/16/2015	NZD		2,215,000		1,489,990
6.375% due 10/12/2010			5,010,000		3,451,856
Province of Quebec
5.25% due 10/01/2013	CAD		2,370,000		2,387,030
					19,039,030
Colombia - 0.03%
Republic of Colombia
10.00% due 01/23/2012		$	110,000		127,600
France - 1.33%
Government of France
4.75% due 10/25/2012	EUR		4,125,000		6,167,590
Germany - 2.75%
Federal Republic of Germany
3.50% due 04/12/2013			1,710,000		2,446,692
4.25% due 07/04/2018			4,685,000		6,909,213
5.00% due 07/04/2012			2,240,000		3,388,064
					12,743,969
Ireland - 2.40%
Republic of Ireland
4.50% due 10/18/2018			7,615,000		11,122,990
Mexico - 0.46%
Government of Mexico
5.625% due 01/15/2017		$	520,000		524,940
5.875% due 01/15/2014			550,000		568,700
6.375% due 01/16/2013			490,000		516,950
8.125% due 12/30/2019			360,000		431,640
10.375% due 02/17/2009			80,000		82,520
					2,124,750
Spain - 1.72%
Kingdom of Spain
5.00% due 07/30/2012	EUR		2,470,000		3,711,668
5.35% due 10/31/2011			2,840,000		4,292,623
			8,004,291
United Kingdom - 1.36%
Government of United Kingdom
5.00% due 03/07/2012	GBP		1,635,000		3,035,052

 

Strategic Bond Fund (continued)
			Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
United Kingdom (continued)
Government of United Kingdom (continued)
5.00% due 03/07/2018		GBP		1,725,000	$	3,269,724
						6,304,776
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $64,690,048)					$	66,417,608
CORPORATE BONDS - 39.93%
Advertising - 0.26%
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016			$	1,815,000		952,875
Vertis, Inc.
9.75% due 04/01/2009				300,000		249,000
						1,201,875
Air Travel - 0.56%
Delta Air Lines, Inc.
6.821% due 08/10/2022				1,523,945		1,257,255
Northwest Airlines, Inc., Series 07-1
7.027% due 11/01/2019				1,505,000		1,331,925
						2,589,180
Amusement & Theme Parks - 0.28%
HRP Myrtle Beach Operations LLC
7.3825% due 04/01/2012 (b)(h)				1,685,000		1,314,300
Apparel & Textiles - 0.19%
Hanesbrands, Inc., Series B
6.5081% due 12/15/2014 (b)				1,010,000		873,650
Auto Parts - 0.72%
Allison Transmission, Inc.
11.00% due 11/01/2015 (h)				1,880,000		1,729,600
Tenneco Automotive, Inc.
8.625% due 11/15/2014				1,910,000		1,623,500
						3,353,100
Automobiles - 0.94%
DaimlerChrysler N.A. Holding Corp., EMTN
4.375% due 03/21/2013		EUR		3,145,000		4,340,214
Banking - 0.50%
Banco Macro SA
8.50% due 02/01/2017			$	495,000		386,100
Landwirtschaftliche Rentenbank, EMTN
6.50% due 09/17/2009		NZD		1,115,000		771,719
6.625% due 05/27/2010				1,700,000		1,172,519
						2,330,338
Broadcasting - 1.58%
Allbritton Communications Company
7.75% due 12/15/2012			$	2,395,000		2,143,525
Radio One, Inc.
6.375% due 02/15/2013				225,000		160,312
8.875% due 07/01/2011				200,000		170,500
Salem Communications Corp.
7.75% due 12/15/2010				100,000		84,000
Sirius Satellite Radio, Inc.
9.625% due 08/01/2013	��			2,610,000		2,042,325

 

The accompanying notes are an integral part of the financial statements.

318

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Broadcasting (continued)
XM Satellite Radio Holdings, Inc.
13.00% due 08/01/2013		$	3,110,000	$	2,736,800
					7,337,462
Building Materials & Construction - 0.28%
Odebrecht Finance, Ltd.
7.50% due 10/18/2017 (h)			1,300,000		1,300,000
Business Services - 0.70%
Allied Security Escrow Corp.
11.375% due 07/15/2011			200,000		211,250
Minerva Overseas, Ltd.
9.50% due 02/01/2017 (h)			2,865,000		2,642,962
Vangent, Inc.
9.625% due 02/15/2015			455,000		386,750
					3,240,962
Cable & Television - 1.46%
CCH II LLC / CCH II Capital Corp.
10.25% due 10/01/2013 (h)			1,912,000		1,696,900
CSC Holdings, Inc.
8.50% due 06/15/2015 (h)			1,450,000		1,457,250
Mediacom Broadband LLC
8.50% due 10/15/2015			75,000		68,438
Mediacom LLC/Mediacom Capital Corp.
9.50% due 01/15/2013			125,000		120,937
Shaw Communications, Inc.
5.70% due 03/02/2017	CAD		610,000		540,974
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012		$	699,000		683,273
Time Warner Cable, Inc.
6.75% due 07/01/2018			1,515,000		1,529,526
Young Broadcasting, Inc.
10.00% due 03/01/2011			1,790,000		644,400
					6,741,698
Cellular Communications - 0.89%
Centennial Communications Corp.
10.00% due 01/01/2013			1,995,000		2,074,800
Rural Cellular Corp.
5.6819% due 06/01/2013 (b)			840,000		856,800
8.5506% due 11/01/2012 (b)			1,175,000		1,198,500
					4,130,100
Chemicals - 0.32%
American Pacific Corp.
9.00% due 02/01/2015			1,395,000		1,353,150
Nova Chemicals Corp.
6.50% due 01/15/2012			125,000		114,688
					1,467,838
Containers & Glass - 2.56%
BWAY Corp.
10.00% due 10/15/2010			2,380,000		2,368,100
Graphic Packaging International Corp.
8.50% due 08/15/2011			1,000,000		985,000
9.50% due 08/15/2013			2,255,000		2,119,700
OI European Group BV
6.875% due 03/31/2017 (h)	EUR		410,000		553,371
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		$	1,450,000		1,493,500

 

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Containers & Glass (continued)
Smurfit-Stone Container Enterprises, Inc.
8.00% due 03/15/2017		$	1,570,000	$	1,256,000
8.375% due 07/01/2012			2,925,000		2,566,688
US Corrugated, Inc.
10.00% due 06/12/2013			715,000		514,800
					11,857,159
Electrical Utilities - 1.10%
Appalachian Power Company, Series K
5.00% due 06/01/2017			900,000		821,391
Cia de Transporte de Energia Electrica de Alta
Tension SA
8.875% due 12/15/2016 (h)			1,085,000		721,525
Dominion Resources, Inc., Series A
5.60% due 11/15/2016			900,000		881,762
Texas Competitive Electric Holdings Company LLC
10.25% due 11/01/2015 (h)			2,690,000		2,683,275
					5,107,953
Financial Services - 8.20%
CIT Group, Inc.
5.00% due 02/13/2014			615,000		442,831
Ford Motor Credit Company LLC
9.75% due 09/15/2010			1,710,000		1,489,771
General Electric Capital Australia Funding Property, Ltd., MTN
6.50% due 11/15/2011	AUD		2,870,000		2,360,173
General Electric Capital Corp.
6.625% due 02/04/2010	NZD		3,745,000		2,549,804
Independencia International, Ltd.
9.875% due 01/31/2017 (h)		$	1,820,000		1,742,650
9.875% due 05/15/2015 (h)			690,000		678,822
ISA Capital do Brasil SA
8.80% due 01/30/2017 (h)			470,000		501,725
Local TV Finance LLC
9.25% due 06/15/2015 (h)			240,000		177,600
Morgan Stanley, MTN
6.00% due 04/28/2015			900,000		828,978
New South Wales Treasury Corp., Series 10RG
7.00% due 12/01/2010	AUD		24,700,000		21,511,135
Nexstar Finance, Inc.
7.00% due 01/15/2014		$	930,000		762,600
Orascom Telecom Finance
7.875% due 02/08/2014 (h)			425,000		389,385
SLM Corp., MTN
8.45% due 06/15/2018			1,220,000		1,118,708
TAM Capital, Inc.
7.375% due 04/25/2017			1,205,000		939,900
Toyota Motor Credit Corp., EMTN
6.75% due 09/21/2009	NZD		2,300,000		1,593,309
Ucar Finance, Inc.
10.25% due 02/15/2012		$	72,000		74,160
VW Financial Services AG, EMTN
5.375% due 01/25/2012	EUR		565,000		832,721
					37,994,272
Food & Beverages - 0.37%
Cosan SA Industria e Comercio
8.25% due 02/28/2049 (h)		$	2,000,000		1,720,000

 

The accompanying notes are an integral part of the financial statements.

319

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
			Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Gas & Pipeline Utilities - 1.19%
Atlas Pipeline Partners LP
8.125% due 12/15/2015			$	200,000	$	191,000
MarkWest Energy Partners LP/ MarkWest Energy Finance Corp.
8.75% due 04/15/2018 (h)				520,000		517,400
MarkWest Energy Partners LP/ MarkWest Energy Finance Corp., Series B
8.50% due 07/15/2016				2,150,000		2,150,000
NGPL Pipeco LLC
7.119% due 12/15/2017 (h)				935,000		944,010
Southern Union Company
7.20% due 11/01/2066 (b)				705,000		569,278
Targa Resources Partners LP
8.25% due 07/01/2016				760,000		691,600
Williams Partners Finance Corp.
7.25% due 02/01/2017				460,000		461,150
						5,524,438
Healthcare Products - 0.36%
Bausch & Lomb, Inc.
9.875% due 11/01/2015 (h)				450,000		462,375
Hanger Orthopedic Group, Inc.
10.25% due 06/01/2014				1,150,000		1,198,875
						1,661,250
Hotels & Restaurants - 1.29%
CCM Merger, Inc.
8.00% due 08/01/2013 (h)				3,690,000		2,970,450
Landry’s Restaurants, Inc.
9.50% due 12/15/2014				3,050,000		3,019,500
						5,989,950
Household Products - 0.26%
Yankee Acquisition Corp., Series B
8.50% due 02/15/2015				1,555,000		1,197,350
Housing & Urban Development - 1.17%
Canada Housing Trust No. 1
4.60% due 09/15/2011	��	CAD		5,545,000		5,422,381
Industrial Machinery - 0.37%
Manitowoc, Inc.
7.125% due 11/01/2013			$	1,810,000		1,692,350
Insurance - 0.54%
Liberty Mutual Group, Inc.
10.75% due 06/15/2058 (b)(h)				1,930,000		1,756,300
Symetra Financial Corp.
8.30% due 10/15/2037 (b)(h)				905,000		752,152
						2,508,452
Leisure Time - 6.40%
AMC Entertainment, Inc.
8.00% due 03/01/2014				2,295,000		2,071,237
Choctaw Resort Development Enterprise
7.25% due 11/15/2019 (h)				234,000		185,445
Chukchansi Economic Development Authority
8.00% due 11/15/2013 (h)				610,000		501,725
Cinemark, Inc.
zero coupon, step up to 9.75% on 03/15/2009 due 03/15/2014				1,000,000		965,000

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Leisure Time (continued)
Fontainebleau Las Vegas Holdings
10.25% due 06/15/2015 (h)	$	1,295,000	$	611,887
Great Canadian Gaming Corp.
7.25% due 02/15/2015 (h)		1,000,000		942,500
Greektown Holdings LLC
10.75% due 12/01/2013 (h)		3,200,000		2,416,000
Indianapolis Downs Capital LLC
11.00% due 11/01/2012 (h)		2,100,000		1,669,500
Isle of Capri Casinos, Inc.
7.00% due 03/01/2014		810,000		579,150
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		2,425,000		1,721,750
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 (h)		1,415,000		1,177,987
Majestic Star Casino LLC
9.50% due 10/15/2010		1,360,000		822,800
Marquee Holdings, Inc.
9.505 due 08/15/2014		895,000		711,525
Mashantucket Western Pequot Tribe
8.50% due 11/15/2015 (h)		1,860,000		1,357,800
MGM Mirage, Inc.
6.75% due 09/01/2012		475,000		408,500
Mohegan Tribal Gaming Authority
6.375% due 07/15/2009		315,000		304,763
7.125% due 08/15/2014		3,800,000		2,793,000
8.00% due 04/01/2012		1,785,000		1,517,250
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		1,500,000		1,233,750
9.75% due 04/01/2010		1,485,000		1,444,162
Penn National Gaming, Inc.
6.875% due 12/01/2011		100,000		95,000
Pinnacle Entertainment, Inc.
7.50% due 06/15/2015		575,000		445,625
Pokagon Gaming Authority
10.375% due 06/15/2014 (h)		466,000		485,805
Snoqualmie Entertainment Authority
9.125% due 02/01/2015 (h)		1,020,000		747,150
Turning Stone Resort Casino
9.125% due 09/15/2014 (h)		1,785,000		1,718,063
9.125% due 12/15/2010 (h)		1,300,000		1,280,500
Waterford Gaming LLC
8.625% due 09/15/2014 (h)		1,575,000		1,468,688
				29,676,562
Manufacturing - 0.28%
GRUPO KUO SAB de CV
9.75% due 10/17/2017 (h)		1,295,000		1,295,000
Medical-Hospitals - 0.65%
Community Health Systems, Inc.
8.875% due 07/15/2015		1,205,000		1,217,050
HCA, Inc.
9.125% due 11/15/2014		460,000		472,650
Sun Healthcare Group, Inc.
9.125% due 04/15/2015		1,325,000		1,325,000
				3,014,700
Metal & Metal Products - 0.64%
Blaze Recycling & Metals LLC
10.875% due 07/15/2012 (h)		590,000		597,375

 

The accompanying notes are an integral part of the financial statements.

320

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Metal & Metal Products (continued)
CII Carbon LLC
11.125% due 11/15/2015 (h)	$	2,425,000	$	2,388,625
				2,986,000
Mining - 0.69%
Drummond Company, Inc.
7.375% due 02/15/2016 (h)		3,630,000		3,203,475
Paper - 0.62%
International Paper Company
7.95% due 06/15/2018		1,180,000		1,198,926
NewPage Corp.
10.00% due 05/01/2012		960,000		931,200
Pope & Talbot, Inc.
8.375% due 06/01/2013		500,000		5,000
8.375% due 06/01/2013		1,000,000		10,000
Verso Paper, Inc., Series B
9.125% due 08/01/2014		750,000		705,000
				2,850,126
Petroleum Services - 0.44%
Allis-Chalmers Energy, Inc.
8.50% due 03/01/2017		1,420,000		1,288,650
McMoRan Exploration Company
11.875% due 11/15/2014		735,000		757,050
				2,045,700
Railroads & Equipment - 0.09%
American Railcar Industries, Inc.
7.50% due 03/01/2014		440,000		407,000
Retail - 0.18%
Michaels Stores, Inc.
10.00% due 11/01/2014		1,085,000		813,750
Software - 0.40%
Oracle Corp.
5.75% due 04/15/2018		1,840,000		1,845,246
Steel - 0.10%
Steel Capital SA for OAO Severstal
9.75% due 07/29/2013		485,000		482,939
Telecommunications Equipment & Services - 1.43%
Axtel SAB de CV
7.625% due 02/01/2017 (h)		2,275,000		2,212,438
Citizens Communications Company
7.125% due 03/15/2019		710,000		614,150
Digicel Group, Ltd.
8.875% due 01/15/2015 (h)		1,955,000		1,835,354
West Corp.
11.00% due 10/15/2016		2,535,000		1,983,638
				6,645,580
Telephone - 0.91%
Cincinnati Bell, Inc.
8.375% due 01/15/2014		2,000,000		1,892,500
Sprint Capital Corp.
8.375% due 03/15/2012		2,325,000		2,342,438
				4,234,938

 

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Tobacco - 0.57%
Alliance One International, Inc.
11.00% due 05/15/2012	$	2,580,000	$	2,625,150
Transportation - 0.44%
Navios Maritime Holdings, Inc.
9.50% due 12/15/2014		1,125,000		1,074,375
PHI, Inc.
7.125% due 04/15/2013		1,000,000		941,250
				2,015,625
TOTAL CORPORATE BONDS (Cost $199,721,749)			$	185,038,063
COLLATERALIZED MORTGAGE OBLIGATIONS - 11.71%
American Home Mortgage Assets, Series 2006-6, Class XP
3.1939% IO due 12/25/2046		20,254,056		810,162
American Home Mortgage Investment Trust, Series 2007-1, Class GIOP
2.1163% IO due 05/25/2047		14,700,632		728,607
Banc of America Commercial Mortgage, Inc., Series 2006-5, Class A4
5.414% due 09/10/2047		2,980,000		2,728,697
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.3994% due 07/15/2044 (b)		3,405,000		3,240,398
Countrywide Alternative Loan Trust, Series 2005-59, Class 2X
3.1878% IO due 11/20/2035 (b)		12,478,143		428,936
Countrywide Alternative Loan Trust, Series 2006-OA10, Class XPP
1.8995% IO due 08/25/2046 (b)		8,573,737		634,450
Countrywide Alternative Loan Trust, Series 2006-OA8, Class X
1.9407% IO due 07/25/2046 (b)		16,135,459		547,024
Crown Castle Towers LLC, Series 2006-1A, Class F
6.649% due 11/15/2036 (h)		840,000		748,905
Crown Castle Towers LLC, Series 2006-1A, Class G
6.7954% due 11/15/2036 (h)		985,000		852,778
Federal Home Loan Mortgage Corp., Series 3154,
Class PM
5.50% due 05/15/2034		4,050,000		3,989,352
Federal Home Loan Mortgage Corp., Series 3228,
Class PL
5.50% due 10/15/2034		4,850,000		4,735,361
Federal National Mortgage Association, Series 2006-117, Class PD
5.50% due 07/25/2035		5,055,000		4,885,063
Federal National Mortgage Association, Series 2006-65, Class TE
5.50% due 05/25/2035		2,065,000		2,031,958
Federal National Mortgage Association, Series 2006-84, Class MP
5.50% due 08/25/2035		5,700,000		5,613,963
Global Tower Partners Acquisition LLC, Series 2007-1A, Class G
7.8737% due 05/15/2037 (h)		565,000		506,271
GMAC Commercial Mortgage Securities, Inc., Series 2003-C2, Class A2
5.6665% due 05/10/2040 (b)		6,165,000		6,056,875

 

The accompanying notes are an integral part of the financial statements.

321

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Greenpoint Mortgage Funding Trust, Series 2005-AR4, Class 4A2			��
2.8319% due 10/25/2045 (b)	$	2,197,633	$	1,247,972
Greenpoint Mortgage Funding Trust, Series 2006-AR1, Class A2A
2.8419% due 02/25/2036 (b)		1,345,438		642,819
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4
6.1117% due 07/10/2038 (b)		3,310,000		3,147,557
Harborview Mortgage Loan Trust, Series 2005-8, Class 1X
3.0689% IO due 09/19/2035 (b)		12,234,083		271,444
Harborview Mortgage Loan Trust, Series 2006-SB1, Class A1A
3.929% due 12/19/2036 (b)		2,262,897		1,307,871
Harborview Mortgage Loan Trust, Series 2007-3, Class ES
0.35% IO due 05/19/2047		31,434,399		196,465
Harborview Mortgage Loan Trust, Series 2007-4, Class ES
0.35% IO due 07/19/2047		31,678,721		207,892
Harborview Mortgage Loan Trust, Series 2007-6, Class ES
0.3425% IO due 08/19/2037 (h)		22,046,009		137,788
Harborview NIM Corp., Series 2007-3A, Class N1
6.654% due 05/19/2037 (h)		14,464		14,174
Indymac Index Mortgage Loan Trust, Series 2005-AR18, Class 1X
2.9613% IO due 10/25/2036		33,382,271		751,101
Indymac Index Mortgage Loan Trust, Series 2005-AR18, Class 2X
2.6605% IO due 10/25/2036 (b)		36,646,371		527,708
Luminent Mortgage Trust, Series 2006-1, Class X
3.3915% IO due 04/25/2036		9,727,744		278,748
SBA CMBS Trust, Series 2006-1A, Class H
7.389% due 11/15/2036 (h)		525,000		502,810
SBA CMBS Trust, Series 2006-1A, Class J
7.825% due 11/15/2036 (h)		360,000		329,527
WAMU Mortgage Pass Through Certificates, Series 2005-AR13, Class B1
3.0719% due 10/25/2045 (b)		1,978,946		985,477
WAMU Mortgage Pass Through Certificates, Series 2005-AR6, Class B1
3.0719% due 04/25/2045 (b)		3,199,695		1,599,890
WAMU Mortgage Pass Through Certificates, Series 2007-OA5, Class 1XPP
0.6893% IO due 06/25/2017		67,785,013		783,764
WAMU Mortgage Pass Through Certificates, Series 2007-OA6, Class 1XPP
0.8695% IO due 07/25/2047		39,710,057		446,738
Washington Mutual Mortgage Pass Through Certificates, Series 2007-OA4, Class XPPP
0.8727% IO due 04/25/2047		30,494,793		381,185
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR12, Class 1A1
6.0248% due 09/25/2036 (b)		2,351,037		1,948,664
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $55,338,359)			$	54,248,394

 

Strategic Bond Fund (continued)
		Shares or Principal Amount		Value
ASSET BACKED SECURITIES - 0.45%
Lehman XS Trust, Series 2005-5N, Class 3A2
2.8319% due 11/25/2035 (b)		$	592,656	$	257,576
Lehman XS Trust, Series 2006-2N, Class 1A2
2.8119% due 02/25/2046 (b)			2,240,578		919,294
Dominos Pizza Master Issuer LLC, Series 2007-1, Class M1
7.629% due 04/25/2037 (h)			1,475,000		921,875
TOTAL ASSET BACKED SECURITIES (Cost $3,290,854)				$	2,098,745
SUPRANATIONAL OBLIGATIONS - 3.92%
Supranational - 3.92%
European Investment Bank
6.75% due 11/17/2008	NZD		2,160,000		1,507,316
European Investment Bank, EMTN
4.375% due 03/06/2009	GBP		1,120,000		2,030,935
7.00% due 01/18/2012	NZD		2,550,000		1,785,092
Instituto de Credito Oficial, EMTN
5.00% due 12/07/2009	GBP		1,680,000		3,046,322
Inter-American Development Bank, Series INTL
7.25% due 05/24/2012	NZD		9,930,000		7,068,602
Inter-American Development Bank, Series MPLE
4.25% due 12/02/2012	CAD		495,000		478,217
International Finance Corp., MTN
7.50% due 02/28/2013	AUD		2,515,000		2,247,260
					18,163,744
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $18,887,597)				$	18,163,744
COMMON STOCKS - 0.78%
Broadcasting - 0.43%
Sirius XM Radio, Inc. *			1,511,422		2,010,191
Containers & Glass - 0.06%
Pactiv Corp. *			10,680		286,972
Paper - 0.26%
Smurfit-Stone Container Corp. *			237,963		1,201,713
Telecommunications Equipment & Services - 0.03%
Chunghwa Telecom Company, Ltd., ADR *			5,767		142,676
TOTAL COMMON STOCKS (Cost $4,558,064)				$	3,641,552
TERM LOANS - 1.56%
Air Travel - 0.67%
Delta Airlines, Inc.
5.7125% due 04/30/2014 (b)(l)		$	2,830,921		2,043,755
US Airways Group, Inc.
4.9625% due 03/23/2014 (b)(l)			1,540,000		1,071,270
					3,115,025
Healthcare Products - 0.12%
Bausch & Lomb, Inc.
8.205% due 04/11/2015 (b)	EUR		407,950		577,536
Leisure Time - 0.28%
Great Canadian Gaming Corp.
4.3038% due 02/07/2014 (b)		$	1,329,750		1,279,885

 

The accompanying notes are an integral part of the financial statements.

322

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Strategic Bond Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Paper - 0.49%
AbitibiBowater, Inc.
11.50% due 03/30/2009 (l)	$	2,250,000	$	2,261,250
TOTAL TERM LOANS (Cost $7,193,472)			$	7,233,696
OPTIONS - 0.41%
Call Options - 0.25%
Comcast Corp.
Expiration 01/16/2010 at $25.00		26,000,000		520,000
Over The Counter Purchase Call on the USD vs. CAD
Expiration 01/25/2010 at $1.30		10,613,000		49,457
Expiration 01/22/2010 at $1.30		10,613,000		48,915
Expiration 02/26/2010 at $1.30		53,500,000		277,183
Expiration 04/20/2010 at $1.30		10,450,000		59,534
Expiration 04/01/2010 at $1.30		21,000,000		119,637
Over The Counter Purchase Call on the USD vs. EUR
Expiration 02/26/2009 at $1.20		2,120,000		68,472
				1,143,198
Put Options - 0.16%
Over The Counter Purchase Call on the EUR vs. USD
Expiration 12/30/2008 at $1.44		33,000,000		597,960
Over The Counter Purchase Call on the USD vs. JPY
Expiration 12/28/2008 at $100.00		22,000,000		150,282
				748,242
TOTAL OPTIONS (Cost $2,759,240)			$	1,891,440
SHORT TERM INVESTMENTS - 9.28%
Federal Home Loan Bank Discount Notes zero coupon due 09/02/2008	$	43,000,000	$	42,997,671
TOTAL SHORT TERM INVESTMENTS (Cost $42,997,671)			$	42,997,671
Total Investments (Strategic Income Fund)
(Cost $466,444,930) - 97.20%			$	450,423,513
Other Assets in Excess of Liabilities - 2.80%				12,974,505
TOTAL NET ASSETS - 100.00%			$	463,398,018

 

Total Bond Market Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 23.90%
U.S. Treasury Bonds - 6.02%
4.375% due 02/15/2038	$	817,000	$	811,192
5.25% due 11/15/2028 to 02/15/2029		645,000		710,780
5.375% due 02/15/2031		300,000		338,391
6.75% due 08/15/2026		400,000		514,188
7.875% due 02/15/2021		900,000		1,215,281
				3,589,832
U.S. Treasury Notes - 17.88%
2.75% due 07/31/2010		2,000,000		2,016,250

 

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS (continued)
U.S. Treasury Notes (continued)
3.125% due 04/15/2009	$	1,000,000	$	1,006,406
3.375% due 07/31/2013		5,708,000		5,786,040
4.00% due 08/15/2018		1,830,000		1,857,878
				10,666,574
TOTAL U.S. TREASURY OBLIGATIONS (Cost $14,088,452)			$	14,256,406
U.S. GOVERNMENT AGENCY OBLIGATIONS - 43.79%
Federal Home Loan Bank - 1.52%
3.875% due 01/15/2010 to 06/14/2013		900,000		904,473
Federal Home Loan Mortgage Corp. - 2.36%
4.25% due 07/15/2009		800,000		809,044
6.00% due 06/15/2011		400,000		426,090
6.25% due 07/15/2032		150,000		173,969
				1,409,103
Federal National Mortgage Association - 39.91%
3.25% due 04/09/2013		1,000,000		969,468
4.00% due 07/01/2018 to 06/01/2019		286,507		274,203
4.375% due 10/15/2015		300,000		299,771
4.50% due 04/01/2018 to 06/01/2019		858,533		847,276
4.615% due 01/01/2035 (b)		1,046,340		1,055,383
5.00% due 05/01/2019 to 07/01/2035		4,807,288		4,689,664
5.50% due 09/01/2017 to 10/01/2035		8,179,489		8,164,287
5.691% due 04/01/2037		2,328,743		2,378,322
6.00% due 08/01/2034 to 06/01/2036		2,403,437		2,436,231
6.125% due 03/15/2012		500,000		537,828
6.375% due 06/15/2009		1,000,000		1,026,375
6.50% due 07/01/2031 to 06/01/2036		592,254		612,492
7.125% due 06/15/2010		300,000		320,668
7.25% due 05/15/2030		150,000		192,117
				23,804,085
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $25,776,434)			$	26,117,661
FOREIGN GOVERNMENT OBLIGATIONS - 1.12%
Brazil - 0.26%
Federative Republic of Brazil
6.00% due 01/17/2017		150,000		153,600
Canada - 0.59%
Government of Canada
5.25% due 11/05/2008		150,000		150,742
5.75% due 02/15/2009		200,000		202,572
				353,314
Mexico - 0.27%
Government of Mexico
9.875% due 02/01/2010		150,000		162,375
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $681,090)			$	669,289
CORPORATE BONDS - 24.45%
Aerospace - 0.28%
Northrop Grumman Corp.
7.75% due 03/01/2016		150,000		169,203

 

The accompanying notes are an integral part of the financial statements.

323

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Agriculture - 0.26%
Archer-Daniels-Midland Company
7.00% due 02/01/2031	$	150,000	$	155,703
Aluminum - 0.20%
Alcoa, Inc.
5.72% due 02/23/2019		20,000		18,219
6.75% due 07/15/2018		100,000		99,563
				117,782
Automobiles - 0.34%
DaimlerChrysler North America Holding
7.20% due 09/01/2009		200,000		204,701
Banking - 1.86%
Bank of America Corp.
5.42% due 03/15/2017		200,000		177,778
Bank One Corp.
7.875% due 08/01/2010		250,000		262,973
KFW International Finance, Inc.
3.25% due 03/30/2009		150,000		149,509
Royal Bank of Scotland Group PLC
5.00% due 11/12/2013		300,000		292,454
US Bank NA, BKNT
6.375% due 08/01/2011		200,000		209,918
Wachovia Capital Trust III
5.80% due 03/15/2042 (b)		30,000		16,200
				1,108,832
Broadcasting - 0.10%
News America, Inc.
6.65% due 11/15/2037		60,000		57,842
Building Materials & Construction - 0.35%
CRH America, Inc.
6.00% due 09/30/2016		120,000		107,165
8.125% due 07/15/2018		100,000		101,991
				209,156
Cable & Television - 0.83%
Cox Communications, Inc.
4.625% due 01/15/2010		200,000		198,636
Time Warner Companies, Inc.
7.25% due 10/15/2017		200,000		200,452
Viacom, Inc.
6.875% due 04/30/2036		105,000		94,819
				493,907
Computers & Business Equipment - 0.85%
Cisco Systems, Inc.
5.25% due 02/22/2011		150,000		154,936
Dell, Inc.
4.70% due 04/15/2013 (h)		150,000		147,433
International Business Machines Corp.
4.25% due 09/15/2009		200,000		202,280
				504,649
Crude Petroleum & Natural Gas - 0.21%
XTO Energy, Inc.
5.50% due 06/15/2018		137,000		127,089
Domestic Oil - 0.36%
Devon Financing Corp., ULC
6.875% due 09/30/2011		200,000		212,470

 

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities - 2.42%
Appalachian Power Company
7.00% due 04/01/2038	$	60,000	$	59,862
Constellation Energy Group, Inc.
7.60% due 04/01/2032		115,000		112,915
Dominion Resources, Inc.
5.00% due 03/15/2013		82,000		81,272
E.ON International Finance BV
5.80% due 04/30/2018 (h)		385,000		378,996
Enel Finance International SA
6.25% due 09/15/2017 (h)		144,000		146,037
Exelon Corp.
6.75% due 05/01/2011		140,000		144,183
FirstEnergy Corp.
7.375% due 11/15/2031		250,000		268,210
Indiana Michigan Power Company
6.05% due 03/15/2037		90,000		78,821
Israel Electric Corp., Ltd.
7.25% due 01/15/2019 (h)		170,000		171,654
				1,441,950
Financial Services - 4.44%
American Express Bank FSB, BKNT
6.00% due 09/13/2017		250,000		229,674
American Express Credit Corp., Series C
7.30% due 08/20/2013		120,000		121,901
Capital One Financial Corp., MTN
5.70% due 09/15/2011		250,000		234,676
CIT Group, Inc.
6.00% due 04/01/2036		150,000		99,917
Citigroup, Inc.
5.875% due 02/22/2033		110,000		88,030
General Electric Capital Corp.
6.125% due 02/22/2011		150,000		157,270
Household Finance Corp.
6.375% due 11/27/2012		100,000		102,234
HSBC Finance Corp.
8.00% due 07/15/2010		150,000		155,714
International Lease Finance Corp., MTN
5.45% due 03/24/2011		200,000		182,000
Merrill Lynch & Company, Inc.
6.875% due 11/15/2018		200,000		183,829
Merrill Lynch & Company, Inc., MTN
6.875% due 04/25/2018		220,000		202,622
Morgan Stanley
6.75% due 04/15/2011		250,000		254,617
Morgan Stanley, MTN
6.625% due 04/01/2018		120,000		111,495
Wells Fargo Bank NA
6.45% due 02/01/2011		500,000		523,397
				2,647,376
Food & Beverages - 1.37%
General Mills, Inc.
5.25% due 08/15/2013		110,000		110,707
Kraft Foods, Inc.
5.25% due 10/01/2013		250,000		247,671
Kroger Company
6.40% due 08/15/2017		70,000		71,525
SABMiller PLC
6.50% due 07/15/2018 (h)		100,000		99,919

 

The accompanying notes are an integral part of the financial statements.

324

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Bond Market Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Food & Beverages (continued)
Tesco PLC
6.15% due 11/15/2037 (h)		$	82,000	$	72,924
Unilever Capital Corp.
7.125% due 11/01/2010			200,000		214,794
					817,540
Gas & Pipeline Utilities - 0.66%
Kinder Morgan Energy Partners LP
5.85% due 09/15/2012	��		150,000		152,196
Texas Eastern Transmission LP
6.00% due 09/15/2017 (h)			70,000		69,140
TransCanada PipeLines, Ltd.
5.85% due 03/15/2036			200,000		171,692
					393,028
Healthcare Products - 0.46%
Covidien International Finance SA
6.00% due 10/15/2017			170,000		172,320
Johnson & Johnson
5.85% due 07/15/2038			100,000		102,561
					274,881
Healthcare Services - 0.09%
WellPoint, Inc.
6.375% due 06/15/2037			60,000		54,014
Holdings Companies/Conglomerates - 0.42%
General Electric Company
5.00% due 02/01/2013			250,000		252,820
Hotels & Restaurants - 0.10%
Yum! Brands, Inc.
6.25% due 03/15/2018			60,000		58,078
Industrial Machinery - 0.16%
Cameron International Corp.
7.00% due 07/15/2038			100,000		97,897
Insurance - 1.14%
Allstate Corp.
7.20% due 12/01/2009			400,000		413,314
American International Group, Inc.
8.25% due 08/15/2018 (h)			100,000		98,582
Lincoln National Corp.
7.00% due 05/17/2066 (b)			30,000		26,089
MetLife, Inc., Series A
6.817% due 08/15/2018			140,000		140,363
					678,348
International Oil - 0.28%
Pemex Project Funding Master Trust
7.375% due 12/15/2014			150,000		165,216
Leisure Time - 0.60%
Vivendi
5.75% due 04/04/2013			102,000		100,298
Walt Disney Company, MTN
5.625% due 09/15/2016			250,000		256,741
					357,039
Manufacturing - 1.17%
Harsco Corp.
5.75% due 05/15/2018			270,000		272,772

 

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)		��
Manufacturing (continued)
Honeywell International, Inc.
7.50% due 03/01/2010	$	200,000	$	212,277
Ingersoll-Rand Global Holding Company, Ltd.
6.875% due 08/15/2018		140,000		140,642
Tyco Electronics Group SA
6.00% due 10/01/2012		75,000		74,431
				700,122
Metal & Metal Products - 0.24%
Commercial Metals Company
7.35% due 08/15/2018		140,000		140,863
Mining - 0.19%
Rio Tinto Finance USA, Ltd.
6.50% due 07/15/2018		110,000		110,673
Petroleum Services - 0.35%
Weatherford International, Ltd.
5.50% due 02/15/2016		215,000		207,017
Pharmaceuticals - 0.12%
AstraZeneca PLC
5.90% due 09/15/2017		70,000		72,707
Railroads & Equipment - 0.34%
CSX Corp.
6.25% due 04/01/2015		205,000		200,865
Real Estate - 1.02%
Duke Realty LP
5.95% due 02/15/2017		72,000		66,329
ProLogis
5.625% due 11/15/2016		60,000		52,808
ProLogis, REIT
5.50% due 04/01/2012		200,000		193,127
Realty Income Corp.
5.95% due 09/15/2016		135,000		121,787
Simon Property Group LP
5.875% due 03/01/2017		86,000		80,092
Vornado Realty LP
5.60% due 02/15/2011		100,000		97,399
				611,542
Retail Trade - 1.13%
Federated Department Stores, Inc.
6.625% due 04/01/2011		100,000		98,469
Safeway, Inc.
6.35% due 08/15/2017		180,000		183,566
Target Corp.
7.50% due 08/15/2010		100,000		107,053
Wal-Mart Stores, Inc.
7.55% due 02/15/2030		250,000		287,408
				676,496
Steel - 0.16%
ArcelorMittal
5.375% due 06/01/2013 (h)	��	100,000		98,080
Telecommunications Equipment & Services - 1.25%
Deutsche Telekom International Finance BV
8.75 due 06/15/2030		250,000		275,543
SBC Communications, Inc.
5.625% due 06/15/2016		200,000		198,875

 

The accompanying notes are an integral part of the financial statements.

325

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment & Services (continued)
Verizon Communications, Inc.
7.375% due 09/01/2012	$	250,000	$	270,756
				745,174
Telephone - 0.70%
AT&T, Inc.
6.30% due 01/15/2038		70,000		66,007
BellSouth Corp.
4.20% due 09/15/2009		200,000		201,278
British Telecommunications PLC
5.95% due 01/15/2018		60,000		56,925
9.125% due 12/15/2030		80,000		94,269
				418,479
TOTAL CORPORATE BONDS (Cost $15,043,135)			$	14,581,539
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.60%
Banc of America Commercial Mortgage, Inc., Series 2006-3, Class A4
5.889% due 07/10/2044		700,000		661,161
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4
5.3445% due 12/15/2044 (b)		275,000		259,873
LB-UBS Commercial Mortgage Trust, Series 2000-C3, Class A2
7.95% due 05/15/2025 (b)		482,519		498,139
Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4
5.69% due 02/12/2051		145,000		130,750
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $1,646,339)			$	1,549,923
ASSET BACKED SECURITIES - 0.73%
Bank of America Credit Card Trust, Series 2008-A3, Class A3
3.2169% due 08/15/2011 (b)		220,000		220,013
CNH Equipment Trust, Series 2008-B, Class A2B
3.4669% due 04/15/2011 (b)		220,000		219,182
TOTAL ASSET BACKED SECURITIES (Cost $440,000)			$	439,195
REPURCHASE AGREEMENTS - 2.72%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $1,621,306 on 09/02/2008, collateralized by $1,675,000 Federal Home Loan Bank, 5.70% due 04/03/2028 (valued at $1,654,063, including interest)	$	1,621,000	$	1,621,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,621,000)			$	1,621,000
Total Investments (Total Bond Market Fund)
(Cost $59,296,450) - 99.31%			$	59,235,013
Other Assets in Excess of Liabilities - 0.69%				410,898
TOTAL NET ASSETS - 100.00%			$	59,645,911

 

Total Bond Market Fund (continued)
		Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS - 68.61%
Federal Home Loan Mortgage Corp. - 11.23%
4.875% due 06/13/2018		$	5,100,000	$	5,205,614
4.894% due 11/01/2035 (b)			687,336		673,441
5.50% due 02/01/2038			7,307,000		7,211,332
5.50% TBA **			81,500,000		80,353,947
6.00% due 08/01/2026 to 08/01/2038			19,035,199		19,330,928
6.00% TBA **			91,600,000		92,337,096
5.00% due 12/14/2018			1,900,000		1,508,767
					206,621,125
Federal National Mortgage Association - 56.85%
4.433% due 01/01/2035 (b)			473,721		477,400
4.445% due 05/01/2035 (b)			1,130,060		1,130,738
4.512% due 07/01/2034 (b)			324,390		326,814
4.818% due 09/01/2035 (b)			767,474		751,922
4.835% due 06/01/2035 (b)			1,720,185		1,730,463
5.00% due 03/01/2022 to 05/01/2038			105,283,352		101,389,999
5.00% TBA **			138,000,000		132,585,550
5.244% due 11/01/2035 (b)			572,717		579,595
5.455% due 03/01/2035 (b)			375,464		377,079
5.50% due 02/01/2021 to 07/01/2038			348,366,317		345,083,401
5.50% TBA **			148,100,000		146,202,469
6.00% due 10/01/2026 to 05/01/2038			151,526,215		153,335,710
6.00% TBA **			135,600,000		136,913,625
6.194% due 11/01/2034 (b)			604,166		601,630
6.50% due 10/01/2036 to 09/01/2037			3,594,759		3,702,043
6.50% TBA **			20,300,000		20,872,523
					1,046,060,961
Government National Mortgage Association - 0.42%
6.00% due 11/15/2036 to 06/15/2037			7,552,935		7,681,276
Small Business Administration - 0.11%
5.29% due 12/01/2027			2,138,265		2,082,998
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $1,250,674,705)				$	1,262,446,360
FOREIGN GOVERNMENT OBLIGATIONS - 0.33%
Brazil - 0.33%
Federative Republic of Brazil
10.25% due 01/10/2028	BRL		6,400,000		3,612,270
12.50% due 01/05/2022			3,600,000		2,376,442
					5,988,712
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $5,582,288)				$	5,988,712
CORPORATE BONDS - 30.12%
Automobiles - 0.36%
DaimlerChrysler NA Holding Corp., MTN
3.1381% due 03/13/2009 (b)		$	6,600,000		6,587,203
Banking - 8.34%
ANZ National International, Ltd.
2.8425% due 08/07/2009 (b)(h)			8,000,000		7,985,984
6.20% due 07/19/2013 (h)			3,100,000		3,109,790
Bank of America Corp.
8.125% due 12/29/2049 (b)			10,450,000		9,434,051
Bank of America NA, BKNT
2.8125% due 12/18/2008 (b)			1,200,000		1,199,300

 

The accompanying notes are an integral part of the financial statements.

326

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Bond Market Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
Bank of America NA, BKNT (continued)
6.00% due 10/15/2036		$	900,000	$	777,179
Bank of Ireland, Series YCD
2.8306% due 01/15/2010 (b)			13,200,000		13,066,403
Barclays Bank PLC
5.45% due 09/12/2012			23,000,000		22,980,726
6.05% due 12/04/2017 (h)			2,900,000		2,736,295
BNP Paribas
5.186% due 06/29/2049 (b)(h)			7,600,000		6,576,728
Credit Agricole SA
2.8094% due 05/28/2009 (b)(h)			2,400,000		2,393,040
2.8594% due 05/28/2010 (b)(h)			2,700,000		2,679,577
Deutsche Bank AG
6.00% due 09/01/2017			4,600,000		4,631,570
DnB NORBank ASA
2.8581% due 10/13/2009 (b)(h)			2,400,000		2,400,718
Export-Import Bank of Korea	��
2.7718% due 06/01/2009 (b)			3,400,000		3,375,418
HSBC Bank USA, BKNT
2.8356% due 06/10/2009 (b)			900,000		896,575
HSBC Finance Corp.
2.8463% due 10/21/2009 (b)			1,700,000		1,668,242
2.9063% due 09/15/2008 (b)			4,300,000		4,299,751
HSBC Finance Corp., MTN
2.8131% due 12/05/2008 (b)			1,600,000		1,596,094
HSBC Holdings PLC
6.50% due 05/02/2036			900,000		830,802
6.50% due 09/15/2037			1,200,000		1,094,212
ICICI Bank, Ltd.
3.3281% due 01/12/2010 (b)(h)			3,800,000		3,690,180
National Australia Bank, Ltd.
2.7313% due 09/11/2009 (b)(h)			2,500,000		2,498,210
5.35% due 06/12/2013 (h)			2,600,000		2,543,973
Residential Capital LLC
5.9119% due 05/22/2009 (b)			3,100,000		1,891,000
Royal Bank of Scotland Group PLC
6.99% due 10/29/2049 (b)(h)			4,400,000		3,675,192
7.648% due 08/31/2049 (b)			5,000,000		4,717,245
Santander Perpetual SA Unipersonal
6.671% due 10/29/2049 (b)(h)			5,600,000		5,326,938
Santander US Debt SA Unipersonal
2.7331% due 11/20/2009 (b)(h)			4,700,000		4,660,478
State Street Capital Trust III
8.25% due 12/29/2049 (b)			2,900,000		2,961,161
State Street Capital Trust IV
3.7763% due 06/15/2037 (b)			400,000		281,237
Sumitomo Mitsui Banking Corp.
5.625% due 07/29/2049 (b)(h)			5,200,000		4,485,161
UBS AG/Stamford Branch, MTN
3.7144% due 05/05/2010 (b)			300,000		298,928
5.75% due 04/25/2018			1,900,000		1,818,963
UBS AG/Stamford Branch, Series DPNT
5.875% due 12/20/2017			2,100,000		2,047,214
USB Capital IX
6.189% due 03/29/2049 (b)			300,000		196,500
Wachovia Bank NA, BKNT
2.7575% due 10/03/2008			1,800,000		1,799,080
2.8706% due 05/25/2010 (b)			11,000,000		10,621,534

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
Wachovia Corp.
2.9206% due 10/15/2011 (b)	$	1,100,000	$	979,883
5.75% due 02/01/2018		6,200,000		5,258,611
				153,483,943
Biotechnology - 0.66%
Amgen, Inc.
2.8894% due 11/28/2008 (b)		2,800,000		2,795,335
6.15% due 06/01/2018		9,100,000		9,360,633
				12,155,968
Building Materials & Construction - 0.28%
C8 Capital SPV, Ltd.
6.64% due 12/31/2049 (b)(h)		5,500,000		5,082,330
Cable & Television - 0.09%
Comcast Corp.
5.875% due 02/15/2018		700,000		674,023
6.45% due 03/15/2037		700,000		645,607
Time Warner, Inc.
3.0338% due 11/13/2009 (b)		400,000		392,004
				1,711,634
Chemicals - 0.08%
Rohm & Haas Company
6.00% due 09/15/2017		1,500,000		1,475,391
Computers & Business Equipment - 0.26%
Dell, Inc.
4.70% due 04/15/2013 (h)		4,800,000		4,717,834
Crude Petroleum & Natural Gas - 0.22%
Anadarko Petroleum Corp.
3.1762% due 09/15/2009 (b)		4,000,000		3,966,500
Financial Services - 16.39%
Allstate Life Global Funding Trusts, MTN
5.375% due 04/30/2013		2,500,000		2,496,915
American Express Bank FSB
5.50% due 04/16/2013		3,500,000		3,314,777
American Express Bank FSB, BKNT
2.5306% due 10/20/2009 (b)		2,600,000		2,565,495
6.00% due 09/13/2017		200,000		183,739
American Express Centurion Bank, BKNT
2.4806% due 06/12/2009 (b)		3,100,000		3,077,020
6.00% due 09/13/2017		200,000		183,739
American Express Company
7.00% due 03/19/2018		2,700,000		2,651,570
American Express Credit Corp., MTN
2.5213% due 03/02/2009 (b)		2,300,000		2,289,358
2.5231% due 11/09/2009 (b)		2,000,000		1,962,414
5.875% due 05/02/2013		2,300,000		2,211,577
American General Finance Corp.
6.90% due 12/15/2017		3,300,000		2,643,508
American Honda Finance Corp., MTN
2.7369% due 03/09/2009 (b)(h)		3,900,000		3,896,334
Bear Stearns Companies, Inc.
6.95% due 08/10/2012		4,100,000		4,258,592
7.625% due 12/07/2009		2,800,000		2,897,840
Bear Stearns Companies, Inc., MTN
2.9012% due 08/21/2009 (b)		4,800,000		4,763,242
2.9269% due 05/18/2010 (b)		4,600,000		4,537,072

 

The accompanying notes are an integral part of the financial statements.

327

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Return Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Bear Stearns Companies, Inc., MTN (continued)
3.0606% due 07/16/2009 (b)	$	900,000	$	895,293
Bear Stearns Companies, Inc., Series B, MTN
2.8906% due 03/30/2009 (b)		2,500,000		2,489,750
Bear Stearns Companies, Inc., Series E, MTN
5.208% due 09/26/2013 (b)	EUR	3,600,000		4,976,455
C10 Capital SPV, Ltd.
6.722% due 12/01/2049 (b)(h)	$	1,700,000		1,582,207
Caelus Re, Ltd.
8.9231% due 06/07/2011 (b)(h)		1,200,000		1,201,159
Calabash Re, Ltd.
11.2137% due 01/08/2010 (b)(h)		2,200,000		2,197,866
CIT Group Holdings, Inc.
2.9462% due 01/30/2009 (b)		1,300,000		1,267,499
CIT Group, Inc., MTN
2.9269% due 08/17/2009 (b)		2,300,000		2,119,873
Citigroup Capital XXI
8.30% due 12/21/2057 (b)		4,400,000		3,971,774
Citigroup Funding, Inc., MTN
2.4719% due 04/23/2009 (b)		2,000,000		1,976,458
2.6669% due 12/08/2008 (b)		400,000		398,885
2.8094% due 06/26/2009 (b)		2,100,000		2,072,272
Citigroup Global Markets Holdings, Inc., Series A, MTN
2.9138% due 03/17/2009 (b)		2,400,000		2,386,114
Citigroup, Inc.
2.8306% due 12/28/2009 (b)		1,400,000		1,370,361
2.8363% due 01/30/2009 (b)		1,100,000		1,093,283
2.8481% due 12/26/2008 (b)		4,100,000		4,087,872
5.30% due 10/17/2012		800,000		768,690
5.50% due 08/27/2012		2,100,000		2,033,289
5.50% due 04/11/2013		8,800,000		8,486,526
5.85% due 07/02/2013		600,000		585,928
6.00% due 08/15/2017		900,000		834,504
6.125% due 08/25/2036		3,500,000		2,856,879
8.40% due 04/29/2049 (b)		20,000,000		16,980,400
Ford Motor Credit Company
5.70% due 01/15/2010		400,000		349,010
5.80% due 01/12/2009		700,000		686,858
7.375% due 10/28/2009		2,100,000		1,951,790
7.375% due 02/01/2011		100,000		80,488
7.875% due 06/15/2010		300,000		258,609
Ford Motor Credit Company LLC
7.25% due 10/25/2011		100,000		76,604
8.625% due 11/01/2010		100,000		83,541
General Electric Capital Corp.
5.50% due 09/15/2067 (b)(h)	EUR	9,900,000		12,260,988
6.375% due 11/15/2067 (b)	$	4,100,000		3,755,124
General Electric Capital Corp., MTN
2.8312% due 01/05/2009 (b)		100,000		100,028
2.825% due 10/26/2009 (b)		800,000		797,281
2.8563% due 01/20/2010 (b)		2,400,000		2,389,589
2.8744% due 08/15/2011 (b)		4,800,000		4,708,915
General Electric Capital Corp., Series A, MTN
2.8963% due 12/15/2009 (b)		8,500,000		8,484,955
GMAC LLC
6.00% due 12/15/2011		400,000		239,674
Goldman Sachs Group, Inc.
2.8912% due 06/23/2009 (b)		1,700,000		1,689,905

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Goldman Sachs Group, Inc. (continued)
5.625% due 01/15/2017	$	2,000,000	$	1,810,826
6.15% due 04/01/2018		8,300,000		7,939,506
6.25% due 09/01/2017		5,400,000		5,226,968
Goldman Sachs Group, Inc., MTN
2.8412% due 12/23/2008 (b)		400,000		399,100
2.8925% due 11/10/2008 (b)		5,700,000		5,683,424
2.8869% due 11/16/2009 (b)		1,100,000		1,085,338
Goldman Sachs Group, Inc., Series B, MTN
2.8912% due 12/22/2008 (b)		5,900,000		5,892,330
3.1294% due 07/23/2009 (b)		1,100,000		1,093,557
HBOS Treasury Services PLC, MTN
2.8294% due 07/17/2009 (b)(h)		3,900,000		3,898,183
International Lease Finance Corp., MTN
3.0306% due 05/24/2010 (b)		18,700,000		16,834,301
JP Morgan Chase & Company
6.00% due 01/15/2018		2,300,000		2,227,279
JP Morgan Chase & Company, MTN
2.8419% due 05/07/2010 (b)		3,900,000		3,860,676
JP Morgan Chase Bank NA, BKNT
6.00% due 10/01/2017		3,900,000		3,775,184
JP Morgan Chase Capital XX, Series T
6.55% due 09/29/2036		400,000		329,126
KeyBank NA, BKNT
4.6819% due 06/02/2010 (b)		4,400,000		4,385,396
Korea Development Bank
2.9275% due 04/03/2010 (b)		9,900,000		9,777,062
Lehman Brothers Holdings, Inc., MTN
2.52% due 11/24/2008 (b)		1,200,000		1,189,159
2.8512% due 12/23/2008 (b)		400,000		392,250
2.8775% due 04/03/2009 (b)		1,300,000		1,249,693
2.9113% due 08/21/2009 (b)		2,300,000		2,158,932
2.9069% due 11/16/2009 (b)		4,100,000		3,789,634
2.9506% due 05/25/2010 (b)		800,000		730,913
3.0113% due 12/23/2010 (b)		10,000,000		8,890,510
6.875% due 05/02/2018		1,100,000		1,024,128
Longpoint Re, Ltd.
8.0638% due 05/08/2010 (b)(h)		1,200,000		1,211,640
Merrill Lynch & Company, Inc.
6.40% due 08/28/2017		3,100,000		2,812,091
Merrill Lynch & Company, Inc., MTN
2.8525% due 05/08/2009 (b)		2,700,000		2,626,266
2.8944% due 08/14/2009 (b)		2,300,000		2,217,106
3.00% due 07/25/2011 (b)		3,200,000		2,867,181
6.05% due 08/15/2012		900,000		862,718
6.875% due 04/25/2018		7,600,000		6,999,668
Merrill Lynch & Company, Inc., Series B, MTN
2.8863% due 01/30/2009 (b)		3,200,000		3,142,870
Morgan Stanley
6.25% due 08/28/2017		800,000		728,154
Morgan Stanley, MTN
2.5113% due 11/21/2008 (b)		1,900,000		1,896,175
2.8806% due 01/15/2010 (b)		2,400,000		2,311,850
4.9044% due 05/14/2010 (b)		5,000,000		4,942,785
Morgan Stanley, Series F, MTN
2.8519% due 05/07/2009 (b)		2,900,000		2,866,070
Morgan Stanley, Series G, MTN
2.9125% due 02/09/2009 (b)		7,200,000		7,135,733

 

The accompanying notes are an integral part of the financial statements.

328

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Return Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Mystic Re, Ltd.
12.6819% due 06/07/2011 (b)(h)	$	700,000	$	713,086
Salomon Brothers AG for OAO Gazprom
10.50% due 10/21/2009 (b)		900,000		954,000
SLM Corp., MTN, Series A
2.94% due 07/27/2009 (b)		10,500,000		9,950,934
SMFG Preferred Capital
6.078% due 01/29/2049 (b)(h)		1,600,000		1,302,384
TNK-BP Finance SA
6.125% due 03/20/2012 (h)		500,000		460,000
TransCapitalInvest, Ltd., for OJSC AK Transneft
8.70% due 08/07/2018 (h)		1,000,000		1,005,545
Wells Fargo & Company
2.8763% due 09/15/2009 (b)		1,500,000		1,500,284
ZFS Finance USA Trust IV
5.875% due 05/09/2032 (h)		1,100,000		933,460
				301,563,363
Food & Beverages - 0.30%
General Mills, Inc.
2.9206% due 01/22/2010 (b)		2,100,000		2,068,683
Kraft Foods, Inc.
6.125% due 02/01/2018		2,500,000		2,455,240
6.875% due 02/01/2038		1,100,000		1,076,156
				5,600,079
Gas & Pipeline Utilities - 0.14%
NGPL PipeCo LLC
6.514% due 12/15/2012 (h)		2,600,000		2,637,560
Insurance - 1.06%
MetLife, Inc.
6.40% due 12/15/2036 (b)		900,000		717,084
Metropolitan Life Global Funding I, MTN
2.8469% due 05/17/2010 (b)(h)		5,000,000		4,937,375
Monumental Global Funding, Ltd.
5.50% due 04/22/2013 (h)		1,900,000		1,882,900
Pricoa Global Funding I
2.8963% due 01/30/2012 (b)(h)		3,200,000		3,078,368
3.0081% due 09/27/2013 (b)(h)		2,700,000		2,529,149
Principal Life Income Funding Trusts, MTN
5.30% due 04/24/2013		2,200,000		2,197,327
5.55% due 04/27/2015		3,500,000		3,478,027
Residential Reinsurance 2007, Ltd., Series CL2
12.9319% due 06/07/2010 (b)(h)		600,000		603,292
				19,423,522
International Oil - 0.15%
Gaz Capital for Gazprom
6.212% due 11/22/2016 (h)		500,000		451,050
Transocean, Inc.
2.8731% due 09/05/2008 (b)		2,300,000		2,300,009
				2,751,059
Manufacturing - 0.17%
Siemens Financieringsmaatschappij NV
2.8544% due 08/14/2009 (b)(h)		3,200,000		3,200,544
Pharmaceuticals - 0.11%
AstraZeneca PLC
5.90% due 09/15/2017		1,000,000		1,038,673

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Pharmaceuticals (continued)
AstraZeneca PLC (continued)
6.45% due 09/15/2037	$	1,000,000	$	1,025,524
				2,064,197
Retail - 0.77%
Home Depot, Inc.
3.75% due 09/15/2009		14,300,000		14,258,902
Telecommunications Equipment & Services - 0.32%
Verizon Communications, Inc.
2.8375% due 04/03/2009 (b)		5,900,000		5,887,645
Telephone - 0.33%
AT&T, Inc.
2.8944% due 02/05/2010 (b)		1,400,000		1,395,695
3.0143% due 11/14/2008 (b)		1,600,000		1,600,595
Telecom Italia Capital SA
3.395% due 07/18/2011 (b)		3,200,000		3,010,899
				6,007,189
Tobacco - 0.09%
Philip Morris International, Inc.
5.65% due 05/16/2018		1,600,000		1,574,090
TOTAL CORPORATE BONDS (Cost $579,629,192)			$	554,148,953
MUNICIPAL BONDS - 1.41%
California - 0.66%
California State Various Purpose
5.00% due 11/01/2037		4,700,000		4,586,918
Los Angeles Unified School District, California, Series A-1
4.50% due 07/01/2023		5,000,000		4,999,750
San Diego Tobacco Settlement Revenue Funding Corp.
7.125% due 06/01/2032		1,550,000		1,470,020
Tobacco Securitization Authority South California
Tobacco Settlement, Series A1-SNR
5.125% due 06/01/2046		1,500,000		1,113,285
				12,169,973
Illinois - 0.32%	��
Chicago Illinois Transit Authority, Series A
6.30% due 12/01/2021		100,000		102,557
6.899% due 12/01/2040		2,700,000		2,863,620
Chicago Illinois Transit Authority, Series B
6.30% due 12/01/2021		300,000		310,659
6.899% due 12/01/2040		2,600,000		2,636,764
				5,913,600
Iowa - 0.05%
Tobacco Settlement Authority of Iowa, Tobacco Settlement Revenue, Series A
6.50% due 06/01/2023		1,070,000		942,392
Nevada - 0.01%
Truckee Meadows Nevada Water Authority, Water Revenue, Series A
5.00% due 07/01/2036		200,000		197,616

 

The accompanying notes are an integral part of the financial statements.

329

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Return Fund (continued)
	Shares or Principal Amount		Value
MUNICIPAL BONDS (continued)
Pennsylvania - 0.08%
Pennsylvania Higher Educational Facilties Authority, Facilities Authority Revenue
10.135% due 07/15/2013 (b)	$	1,500,000	$	1,340,880
West Virginia - 0.16%
Tobacco Settlement Finance Authority of West Virginia, Tobacco Settlement Funded
7.467% due 06/01/2047		3,250,000		2,897,602
Wisconsin - 0.13%
Badger Tobacco Asset Securitization Corp.
6.125% due 06/01/2027		2,420,000		2,401,076
TOTAL MUNICIPAL BONDS (Cost $25,949,125)			$	25,863,139
COLLATERALIZED MORTGAGE OBLIGATIONS - 9.21%
American Home Mortgage Investment Trust, Series 2004-4, Class 4A
4.39% due 02/25/2045		259,984		184,486
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-8, Class 2A1
5.0743% due 11/25/2034 (b)		3,923,491		3,763,506
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-9, Class 22A1
4.7713% due 11/25/2034 (b)		1,269,005		1,176,006
Bear Stearns Alt-A Trust, Series 2005-7, Class 22A1
5.5045% due 09/25/2035 (b)		1,190,243		974,551
Bear Stearns Commercial Mortgage Securities, Series 2007-PW18, Class A4
5.70% due 06/11/2050		4,300,000		3,874,234
Bear Stearns Mortgage Funding Trust, Series 2007-AR1, Class 2A1
2.5419% due 02/25/2037 (b)		3,166,116		2,826,238
Bear Stearns Structured Products, Inc., Series 2007-R7, Class A1
2.66% due 01/26/2037 (b)(h)		4,086,539		3,963,943
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class 1A1
4.90% due 12/25/2035 (b)		1,135,774		1,079,747
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class A2A
4.70% due 12/25/2035		519,643		488,742
Countrywide Alternative Loan Trust, Series 2005-81, Class A1
2.7519% due 02/25/2037 (b)		6,946,945		4,458,111
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-22, Class A3
4.7957% due 11/25/2034 (b)		2,463,933		2,201,415
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB9, Class 1A1
4.7189% due 02/20/2035 (b)		4,368,957		3,960,670
Countrywide Home Loans, Series 2005-HYB9, Class 3A2A
5.25% due 02/20/2036 (b)		611,185		484,808
Credit-Based Asset Servicing and Securitization LLC, Series 2007-SP1, Class A1
2.5619% due 12/25/2037 (b)(h)		4,517,138		4,333,629
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A1
4.938% due 12/15/2040		847,683		846,353

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Deutsche ALT-A Securities Inc Alternate Loan Trust, Series 2007-AR1, Class A3B
2.5419% due 01/25/2047 (b)	$	1,859,133	$	1,737,391
Federal Home Loan Mortgage Corp., REMIC, Series 2007-3346, Class FA
2.6969% due 02/15/2019 (b)		15,153,472		14,711,334
Federal Home Loan Mortgage Corp., Series 2002-2539, Class TE
5.00% due 12/15/2026 (b)		1,428,381		1,429,399
Federal Home Loan Mortgage Corp., Series 2007-3335, Class AF
2.6169% due 10/15/2020 (b)		22,107,606		21,686,279
Federal Home Loan Mortgage Corp., Series 2007-3335, Class BF
2.6169% due 07/15/2019 (b)		3,585,704		3,520,603
Federal Home Loan Mortgage Corp., Series 2637, Class F
2.8669% due 06/15/2018 (b)		316,876		310,934
Federal Home Loan Mortgage Corp., Series 3036, Class NA
5.00% due 07/15/2024		2,422,216		2,453,844
Federal Home Loan Mortgage Corp., Series 3149, Class LF
2.7669% due 05/15/2036 (b)		1,682,633		1,637,547
Federal Home Loan Mortgage Corp., Series 3335, Class FT
2.6169% due 08/15/2019 (b)		16,297,903		15,997,997
Federal Home Loan Mortgage Corp., Series T-63, Class 1A1
4.4901% due 02/25/2045 (b)		205,510		186,125
Federal National Mortgage Association, REMIC, Series 2007-73, Class A1
2.5319% due 07/25/2037 (b)		4,036,316		3,957,276
Federal National Mortgage Association, Series 2003-21, Class M
5.00% due 02/25/2017 (b)		516,102		521,130
Federal National Mortgage Association, Series 2003-37, Class HY
5.00% due 12/25/2016 (b)		8,684,182		8,772,935
Federal National Mortgage Association, Series 2003-W6, Class F
2.8219% due 09/25/2042 (b)		1,918,057		1,889,540
Federal National Mortgage Association, Series 2005-120, Class NF
2.5719% due 01/25/2021 (b)		14,699,244		14,437,986
Federal National Mortgage Association, Series 2005-33, Class QA
5.00% due 06/25/2027		1,675,004		1,698,988
Federal National Mortgage Association, Series 2006-5, Class 3A2
4.6669% due 02/25/2036 (b)		460,752		457,513
Federal National Mortgage Association, Whole Loan, Series 2003-W12, Class 2A5
4.50% due 06/25/2043 (b)		460,634		459,795
Greenpoint Mortgage Funding Trust, Series 2006-AR6, Class A1A
2.5519% due 10/25/2046 (b)		1,979,408		1,700,187
Greenpoint Mortgage Funding Trust, Series 2006-AR8, Class 1A1A
2.5519% due 01/25/2047 (b)		2,212,911		2,098,115

 

The accompanying notes are an integral part of the financial statements.

330

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Return Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
GS Mortgage Securities Corp II, Series 2007-EOP, Class A1
2.5512% due 03/06/2020 (b)(h)	$	2,951,503	$	2,724,192
Indymac Index Mortgage Loan Trust, Series 2006-AR14, Class 1A1A
2.5619% due 11/25/2046 (b)		1,175,889		1,101,687
JP Morgan Chase Commercial Mortgage Security Corp., Series 2006-LDP9, Class A3
5.336% due 05/15/2047		3,000,000		2,709,253
JP Morgan Mortgage Trust, Series 2005-A1, Class 6T1
5.0228% due 02/25/2035 (b)		1,907,599		1,697,271
LB-UBS Commercial Mortgage Trust, Series 2002-C2, Class A2
4.904% due 06/15/2026		190,287		190,311
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A1
4.99% due 11/15/2030		1,147,894		1,148,271
Mellon Residential Funding Corp., Series 2000-TBC3, Class A1
2.9069% due 12/15/2030 (b)		4,949,348		4,592,845
Merrill Lynch Mortgage Investors, Inc., Series 2005-2, Class 3A
3.4719% due 10/25/2035 (b)		567,960		514,696
Merrill Lynch Mortgage Investors, Inc., Series 2005-3, Class 4A
2.7219% due 11/25/2035 (b)		329,374		297,123
Merrill Lynch Mortgage Investors, Inc., Series 2005-A10, Class A
2.6819% due 02/25/2036 (b)		1,144,673		917,988
Morgan Stanley Capital I, Series 2007-XLFA, Class A1
2.527% due 10/15/2020 (b)(h)		717,787		660,927
Structured Asset Mortgage Investments, Inc., Series 2005-AR5, Class A3
2.7156% due 07/19/2035 (b)		2,327,901		1,908,602
Structured Asset Mortgage Investments, Inc., Series 2005-AR8, Class A1A
2.7519% due 02/25/2036 (b)		669,558		434,674
Structured Asset Mortgage Investments, Inc., Series 2007-AR2, Class 2A1
2.6019% due 03/25/2037 (b)		3,484,644		2,686,558
Thornburg Mortgage Securities Trust, Series 2006-5, Class A1
2.5919% due 08/25/2036 (b)		4,230,558		4,075,231
Thornburg Mortgage Securities Trust, Series 2006-6, Class A1
2.5819% due 11/25/2011 (b)		1,667,616		1,596,918
WaMu Mortgage Pass-Through Certificates, Series 2002-AR17, Class 1A
4.279% due 11/25/2042 (b)		262,551		243,209
Washington Mutual, Inc., Series 2001-7, Class A
4.4724% due 05/25/2041 (b)		212,107		194,515
Washington Mutual, Inc., Series 2005-AR19, Class A1A1
2.7419% due 12/26/2045 (b)		3,385,552		2,222,063
Wells Fargo Mortgage Backed Securities Trust, Series 2004-CC, Class A1
4.9465% due 01/25/2035 (b)		3,273,041		3,020,326

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR2, Class 2A1
4.95% due 03/25/2036 (b)	$	2,512,754	$	2,247,349
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $180,673,619)			$	169,465,366
ASSET BACKED SECURITIES - 6.19%
Access Group, Inc., Series 2008-1, Class A
4.093% due 10/27/2025 (b)		11,300,000		11,187,000
ACE Securities Corp., Series 2006-ASP5, Class A2A
2.5519% due 10/25/2036 (b)		696,993		689,945
Argent Securities, Inc., Series 2006-M2, Class A2A
2.5219% due 09/25/2036 (b)		363,434		360,453
BA Credit Card Trust, Series 2008-A5, Class A5
3.6669% due 12/16/2013 (b)		13,800,000		13,764,328
Bear Stearns Asset Backed Securities Trust, Series 2007-HE5, Class 1A1
2.5619% due 06/25/2047 (b)		1,202,887		1,142,897
Bear Stearns Asset Backed Securities, Inc., Series 2007-HE1, Class 21A1
2.5319% due 01/25/2037 (b)		3,261,670		3,050,711
BNC Mortgage Loan Trust, Series 2007-2, Class A2
2.5719% due 05/25/2037 (b)		2,194,839		2,008,210
Carrington Mortgage Loan Trust, Series 2005-NC5, Class A2
2.7919% due 10/25/2035 (b)		1,813,484		1,718,409
Citicorp Residential Mortgage Securities, Inc., Series 2006-1, Class A1
5.956% due 07/25/2036		1,796,811		1,792,374
Citigroup Commercial Mortgage Trust, Series 2006-FL2, Class A1
2.5369% due 10/01/2036 (b)(h)		69,049		66,100
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH4, Class A1
2.5113% due 11/25/2036 (b)		197,708		195,761
Countrywide Asset-Backed Certificates, Series 2006-15, Class A1
2.5819% due 10/25/2046 (b)		998,421		969,881
Countrywide Asset-Backed Certificates, Series 2006-16, Class 2A1
2.5219% due 12/25/2046 (b)		368,550		363,346
Countrywide Asset-Backed Certificates, Series 2006-17, Class 2A1
2.5219% due 03/25/2047 (b)		621,446		606,646
Countrywide Asset-Backed Certificates, Series 2006-18, Class 2A1
2.5219% due 03/25/2037 (b)		2,062,975		1,974,668
Countrywide Asset-Backed Certificates, Series 2006-19, Class 2A1
2.5319% due 03/25/2037 (b)		1,377,483		1,337,553
Countrywide Asset-Backed Certificates, Series 2007-1, Class 2A1
2.5219% due 07/25/2037 (b)		8,103,705		7,614,075
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF15, Class A3
2.5219% due 11/25/2036 (b)		2,093,362		1,971,361
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF9, Class 2A1
2.5319% due 06/25/2036 (b)		2,795,350		2,745,466

 

The accompanying notes are an integral part of the financial statements.

331

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Return Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
First Franklin Mortgage Loan Asset Backed Certificates, Series 2007-FF1, Class A2A
2.5119% due 01/25/2038 (b)	$	3,026,516	$	2,836,705
Fremont Home Loan Trust, Series 2006-3, Class 2A1
2.5419% due 02/25/2037 (b)		551,267		540,266
GE Capital Commercial Mortgage Corp., Series 2002-3A, Class A1
4.229% due 12/10/2037 (b)		4,577,930		4,526,235
GSAMP Trust, Series 2006-FM2, Class A2A
2.5419% due 09/25/2036 (b)		918,053		902,674
GSAMP Trust, Series 2007-FM1, Class A2A
2.5419% due 12/25/2036 (b)		1,798,905		1,658,357
GSR Mortgage Loan Trust, Series 2005-AR7, Class 6A1
5.2481% due 11/25/2035 (b)		2,957,019		2,603,925
GSR Mortgage Loan Trust, Series 2005-HEL1, Class A2A
2.5719% due 11/25/2030 (b)		30,752		30,019
HFC Home Equity Loan Asset Backed Certificates, Series 2005-1, Class A
2.7606% due 01/20/2034 (b)		2,588,694		2,222,844
HSBC Asset Loan Obligation, Series 2007-WF1, Class A1
2.5319% due 12/25/2036 (b)		7,083,945		6,813,325
HSI Asset Securitization Corp. Trust, Series 2006-HE2, Class 2A1
2.5219% due 12/25/2036 (b)		855,736		786,268
JP Morgan Mortgage Acquisition Corp., Series 2006-HE3, Class A2
2.5314% due 11/25/2036 (b)		343,755		333,355
JP Morgan Mortgage Acquisition Corp., Series 2006-WMC3, Class A2
2.5219% due 08/25/2036 (b)		445,332		438,147
JP Morgan Mortgage Acquisition Corp., Series 2007-HE1, Class AV1
2.5319% due 04/25/2009 (b)		2,336,027		2,192,186
Lehman Brothers Floating Rate Commercial Mortgage Trust, Series 2006-LLFA, Class A1
2.5469% due 09/15/2021 (b)(h)		300,494		282,868
Long Beach Mortgage Loan Trust, Series 2004-4, Class 1A1
2.7519% due 10/25/2034 (b)		58,753		45,908
Master Asset Backed Securities Trust, Series 2007-HE1, Class A1
2.5519% due 05/25/2037 (b)		1,557,039		1,446,147
Morgan Stanley ABS Capital I, Series 2006-NC5, Class A2A
2.5119% due 10/25/2036 (b)		586,461		577,464
Morgan Stanley ABS Capital I, Series 2007-HE1, Class A2A
2.5219% due 11/25/2036 (b)		2,691,606		2,521,882
Option One Mortgage Loan Trust, Series 2007-1, Class 2A1
2.5219% due 01/25/2037 (b)		1,698,779		1,632,510
Park Place Securities, Inc., Series 2004-MCW1, Class A1
2.7839% due 08/25/2034 (b)		2,285,399		1,906,538
Residential Asset Mortgage Products, Inc., Series 2006-RZ4, Class A1A
2.5519% due 10/25/2036 (b)		1,279,177		1,192,435

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Residential Asset Securities Corp., Series 2006-EMX9, Class 1A1
2.5419% due 11/25/2036 (b)	$	2,126,024	$	2,087,472
Residential Asset Securities Corp., Series 2006-KS6, Class A1
2.5119% due 08/25/2036 (b)		32,280		32,184
Residential Asset Securities Corp., Series 2006-KS8, Class A1
2.5319% due 10/25/2036 (b)		1,568,321		1,549,942
Residential Asset Securities Corp., Series 2006-KS9, Class AI1
2.5419% due 11/25/2036 (b)		1,070,019		1,057,410
Saxon Asset Securities Trust, Series 2006-3, Class A1
2.5319% due 11/25/2036 (b)		484,255		473,044
SBI Heloc Trust, Series 2006-1A, Class 1A2A
2.6419% due 08/25/2036 (b)(h)		834,933		814,480
Securitized Asset Backed Receivables LLC Trust, Series 2007-HE1, Class A2A
2.5319% due 12/25/2036 (b)		1,525,091		1,411,347
Soundview Home Equity Loan Trust, Series 2006-EQ1, Class A1
2.5219% due 10/25/2036 (b)		362,948		359,801
Specialty Underwriting & Residential Finance, Series 2007-BC1, Class A2A
2.5319% due 01/25/2038 (b)		3,397,932		3,279,994
Structured Asset Securities Corp., Series 2006-11, Class A1
5.3002% due 12/31/2036 (b)(h)		1,571,471		1,330,132
Structured Asset Securities Corp., Series 2006-BC3, Class A2
2.5219% due 10/25/2036 (b)		1,529,175		1,468,770
Wachovia Bank Commercial Mortgage Trust, Series 2006-WL7A, Class A1
2.5569% due 08/11/2018 (b)(h)		8,165,327		7,619,007
Wachovia Bank Commercial Mortgage Trust, Series 2007-WHL8, Class A1
2.5469% due 06/15/2020 (b)(h)		3,754,699		3,423,768
TOTAL ASSET BACKED SECURITIES (Cost $118,961,388)			$	113,956,593
PREFERRED STOCKS - 2.72%
Banking - 2.70%
Bank of America Corp., 8.00%		12,100,000		10,783,326
Wachovia Corp., 7.98%		51,900,000		38,991,951
				49,775,277
Insurance - 0.02%
American International Group, Inc., 8.50%		6,200		309,070
TOTAL PREFERRED STOCKS (Cost $64,464,159)			$	50,084,347
TERM LOANS - 0.54%
Cable & Television - 0.10%
Cablevision Systems Corp.
4.2063% due 02/24/2013 (b)		1,972,411		1,876,867
Financial Services - 0.35%
Chrysler Financial
9.00% due 08/03/2012 (b)		7,940,000		6,322,225

 

The accompanying notes are an integral part of the financial statements.

332

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Total Return Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Semiconductors - 0.09%
Sensata Technologies, Inc.
4.4119% due 04/27/2013 (b)	$	1,974,811	$	1,719,725
TOTAL TERM LOANS (Cost $11,475,940)			$	9,918,817
OPTIONS - 0.22%
Call Options - 0.22%
Over The Counter European Style Call on USD-LIBOR Rate Swaption
Expiration 12/15/2008 at $3.15 *		270,700,000		719,385
Expiration 12/15/2008 at $3.15 *		34,200,000		90,886
Expiration 02/02/2009 at $3.15 *		111,000,000		350,949
Expiration 08/03/2009 at $3.45 *		26,000,000		145,436
Expiration 08/03/2009 at $3.45 *		158,800,000		888,280
Expiration 08/03/2009 at $3.45 *		23,800,000		133,130
Expiration 02/02/2009 at $3.50 *		129,700,000		755,451
Expiration 07/02/2009 at $3.60 *		20,700,000		138,489
Expiration 08/03/2009 at $3.85 *		86,600,000		762,426
				3,984,432
TOTAL OPTIONS (Cost $8,747,592)			$	3,984,432
REPURCHASE AGREEMENTS - 7.11%
Credit Suisse First Boston Tri-Party Repurchase Agreement dated 08/29/2008 at 1.85% to be repurchased at $16,003,289 on 09/02/2008, collateralized by $12,203,000 U.S. Treasury Notes, 3.50% due 01/15/2011 (valued at $16,374,710, including interest)	$	16,000,000	$	16,000,000
Deutsche Bank Tri-Party Repurchase Agreement dated 08/29/2008 at 1.98% to be repurchased at $110,324,266 on 09/02/2008, collateralized by $103,506,000 U.S. Treasury Notes, 4.50% due 11/15/2015 (valued at $112,821,540, including interest)		110,300,000		110,300,000
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $4,457,842 on 09/02/2008, collateralized by $4,470,000 Federal National Mortgage Association, 3.375% due 03/05/2010 (valued at $4,547,331, including interest)		4,457,000		4,457,000
TOTAL REPURCHASE AGREEMENTS (Cost $130,757,000)			$	130,757,000
SHORT TERM INVESTMENTS - 4.08%
Citibank Omni
3.58% due 10/23/2008	$	22,900,000	$	22,781,582
Fortis Bank SA/NV - New York NY, Series YCD
2.7506% due 09/30/2008 (b)		2,700,000		2,699,161
Merrill Lynch Commercial Trust 2008-LAQ
2.9864% due 07/09/2009		5,000,000		4,712,500
U.S. Treasury Bills
zero coupon due 09/11/2008 to 09/25/2008		5,500,000		5,494,530
UBS Finance Delaware LLC
2.635% due 09/03/2008		28,300,000		28,295,857

 

Total Return Fund (continued)
	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS (continued)
UBS Finance Delaware LLC (continued)
2.845% due 09/30/2008	$	11,200,000	$	11,174,332
TOTAL SHORT TERM INVESTMENTS (Cost $75,138,711)			$	75,157,962
Total Investments (Total Return Fund) (Cost $2,452,053,719) - 130.54%			$	2,401,771,681
Liabilities in Excess of Other Assets - (30.54)%				(561,829,252	)
TOTAL NET ASSETS - 100.00%			$	1,839,942,429

 

Schedule of Securities Sold Short
	Shares or Principal Amount		Value
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 2.10%
Government National Mortgage Association
6.00%, TBA **	$	3,300,000	$	3,348,984
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (Proceeds $3,310,828)			$	3,348,984
U.S. TREASURY NOTES - 97.90%
U.S. Treasury Notes
3.125%, due 11/30/2009 (j)		11,200,000	$	11,335,621
3.25%, due 12/31/2009 (j)		53,700,000	$	54,446,752
2.125%, due 01/31/2010 (j)		18,200,000	$	18,195,741
3.50%, due 02/15/2010 (j)		6,000,000	$	6,121,878
2.00%, due 02/28/2010 (j)		12,200,000	$	12,171,403
2.125%, due 04/30/2010 (j)		11,500,000	$	11,489,213
2.875%, due 01/31/2013 (j)		12,000,000	$	11,965,308
4.25%, due 08/15/2013 (j)		5,300,000	$	5,588,188
4.50%, due 05/15/2017 (j)		23,500,000	$	24,884,291
TOTAL U.S. TREASURY NOTES (Proceeds $155,755,581)			$	156,198,395
Total Securities Sold Short (Total Return Fund) (Proceeds $159,066,409)			$	159,547,379

 

U.S. Government Securities Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 3.10%
Treasury Inflation Protected Securities (d) - 1.20%
2.00% due 01/15/2026	$	639,224	$	625,840
2.375% due 01/15/2027		1,713,826		1,773,275
				2,399,115
U.S. Treasury Bonds - 0.25%
7.125% due 02/15/2023		140,000		181,573
8.875% due 02/15/2019		230,000		323,905
				505,478

 

The accompanying notes are an integral part of the financial statements.

333

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Government Securities Fund (continued)
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS (continued)
U.S. Treasury Notes - 1.65%
2.875% due 06/30/2010	$	80,000	$	80,844
4.00% due 08/31/2009 to 08/15/2018		3,060,000		3,113,525
4.875% due 10/31/2008		100,000		100,508
				3,294,877
TOTAL U.S. TREASURY OBLIGATIONS (Cost $6,071,101)			$	6,199,470
U.S. GOVERNMENT AGENCY OBLIGATIONS - 80.83%
Federal Home Loan Mortgage Corp. - 18.20%
5.00% due 08/01/2033 to 08/01/2035		30,782,951		29,687,187
5.00% TBA **		3,000,000		2,879,766
5.50% due 11/01/2035		871,319		861,312
5.868% due 01/01/2037		2,078,255		2,119,423
6.00% due 10/01/2010 to 12/01/2028		360,506		367,620
6.50% due 12/01/2010		2,649		2,730
7.00% due 02/01/2011 to 06/01/2032		434,325		456,580
9.00% due 10/01/2017		5,193		5,647
9.50% due 08/01/2020		19,545		21,895
11.75% due 12/01/2013		766		810
12.00% due 07/01/2020		4,952		5,552
				36,408,522
Federal National Mortgage Association - 62.32%
4.75% due 11/19/2012		4,520,000		4,662,056
5.00% due 12/01/2019		6,380,902		6,420,035
5.00% due 06/01/2035 (j)		1,407,221		1,360,222
5.00% TBA **		43,100,000		41,426,134
5.3155% due 02/17/2009 (b)		1,544,000		1,544,000
5.50% due 04/01/2018 to 08/01/2037		13,326,042		13,230,368
5.50% TBA **		39,300,000		39,096,755
5.743% due 08/01/2037 (b)		1,764,748		1,803,842
6.00% due 02/01/2037		5,488,710		5,552,388
6.00% TBA **		1,660,000		1,700,073
6.335% due 07/01/2037 (b)		2,100,636		2,156,197
6.50% due 02/01/2026 to 10/01/2037		4,359,414		4,503,679
7.00% due 07/01/2022 to 01/01/2034		586,687		619,862
7.50% due 09/01/2029 to 02/01/2031		107,448		115,322
8.00% due 06/01/2017 to 03/01/2033		253,447		270,813
8.50% due 08/01/2019		89,186		98,006
8.75% due 08/01/2009 to 12/01/2009		4,352		4,400
9.00% due 05/01/2021		4,616		4,962
11.50% due 09/15/2013 to 09/01/2019		19,457		21,929
12.00% due 01/01/2013 to 04/01/2016		55,625		63,181
12.50% due 01/01/2013 to 09/01/2015		24,725		27,664
13.50% due 11/01/2014		12,231		13,731
				124,695,619
Government National Mortgage Association - 0.31%
6.50% due 02/15/2034 to 09/15/2034		320,148		332,094
7.50% due 03/15/2026 to 12/15/2027		137,800		147,728
8.50% due 06/15/2025		121,255		133,287
11.00% due 09/15/2015		574		656
				613,765
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $161,049,721)			$	161,717,906

 

U.S. Government Securities Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS - 17.34%
American Home Mortgage Assets, Series 2006-3, Class 3A12
2.6513% due 10/25/2046 (b)	$	1,064,735	$	659,389
American Home Mortgage Investment Trust, Series 2006-2, Class 1A1
2.5519% due 06/25/2046 (b)		393,152		385,445
Bear Stearns Alt-A Trust, Series 2004-11, Class 2A2
6.3628% due 11/25/2034 (b)		552,592		419,391
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A4
5.405% due 12/11/2040 (b)		360,000		342,518
Bear Stearns Structured Products Inc., Series 2007-R11, Class A1A
3.0719% due 09/27/2037 (b)(h)		1,809,526		1,723,574
Commercial Mortgage Pass-Through Certificates, Series 2006-C8, Class A4
5.306% due 12/10/2046 (b)		1,740,000		1,573,594
Countrywide Alternative Loan Trust, Series 2005-17, Class 2A1
2.7119% due 07/25/2035 (b)		433,418		281,434
Countrywide Alternative Loan Trust, Series 2005-59, Class 1A1
2.8019% due 11/20/2035 (b)		334,748		214,675
Countrywide Alternative Loan Trust, Series 2006-OA10, Class 4A1
2.6619% due 08/25/2046 (b)		1,222,328		752,017
Countrywide Alternative Loan Trust, Series 2006-OA11, Class A4
2.6619% due 09/25/2046 (b)		1,323,323		640,873
Countrywide Alternative Loan Trust, Series 2006-OA7, Class 3A1
2.6819% due 06/25/2046 (b)		767,050		479,862
Countrywide Alternative Loan Trust, Series 2006-OA9, Class 1A1
2.6706% due 07/20/2046 (b)		1,298,105		756,139
Countrywide Alternative Loan Trust, Series 2006-OA9, Class 2A1B
2.6706% due 07/20/2046 (b)		1,333,408		769,600
Countrywide Alternative Loan Trust, Series 2006-OC2, Class 2A3
2.7619% due 02/25/2036 (b)		1,000,000		347,706
Countrywide Home Loans, Series 2006-OA5, Class 1A1
2.6719% due 03/25/2036 (b)		584,659		363,996
CS First Boston Mortgage Securities Corp, Series 2005-C5, Class A4
5.10% due 08/15/2038 (b)		1,010,000		946,706
Federal Home Loan Mortgage Corp., Series 2525, Class AM
4.50% due 04/15/2032		240,246		211,692
Federal National Mortgage Association Whole Loan, Series 2003-W12, Class 2A7
4.68% due 06/25/2043		5,000,000		4,718,750
Federal National Mortgage Association Whole Loan, Series 2005-W3, Class 2AF
2.6919% due 03/25/2045 (b)		506,804		496,525
Federal National Mortgage Association Whole Loan, Series 2003-W14, Class 2A
5.83% due 01/25/2043 (b)		724,022		722,548

 

The accompanying notes are an integral part of the financial statements.

334

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Government Securities Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Harborview Mortgage Loan Trust, Series 2005-7, Class 1A1
4.768% due 06/19/2045 (b)	$	431,971	$	263,974
Impac CMB Trust, Series 2004-5, Class 1A1
2.8319% due 10/25/2034 (b)		825,521		659,913
Impac Secured Assets Corp., Series 2005-2, Class A1
2.7919% due 03/25/2036 (b)		881,919		642,671
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4
5.661% due 03/15/2039 (b)		460,000		430,052
LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A3
5.347% due 11/15/2038		1,950,000		1,771,070
Luminent Mortgage Trust, Series 2006-4, Class A1A
2.6619% due 05/25/2046 (b)		1,059,062		666,906
Master Adjustable Rate Mortgages Trust, Series 2004-15, Class 1A1
6.5859% due 12/25/2034 (b)		70,306		69,771
Master Adjustable Rate Mortgages Trust., Series 2007-3, Class 12A1
2.6719% due 05/25/2047 (b)		1,709,681		1,057,968
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4
5.8412% due 05/12/2039 (b)		750,000		703,577
Morgan Stanley Mortgage Loan Trust, Series 2006-8AR, Class 1A2
2.5419% due 06/25/2036 (b)		556,472		485,571
Novastar Mortgage-Backed Notes, Series 2006-MTA1, Class 2A1A
2.6619% due 09/25/2046 (b)		1,016,434		629,373
Structured Asset Mortgage Investments, Inc., Series 2006-AR6, Class 1A1
2.6519% due 12/25/2035 (b)		1,180,235		735,445
Structured Asset Mortgage Investments, Inc., Series 2006-AR7, Class A1A
2.6819% due 08/25/2036 (b)		1,445,992		898,623
Thornburg Mortgage Securities Trust, Series 2005-3, Class A3
2.7319% due 10/25/2035 (b)		1,445,019		1,442,412
Thornburg Mortgage Securities Trust, Series 2005-4, Class A4
2.6719% due 12/25/2035 (b)		1,640,866		1,632,807
Thornburg Mortgage Securities Trust, Series 2006-3, Class A2
2.5769% due 05/25/2046 (b)		1,313,403		1,260,244
Thornburg Mortgage Securities Trust, Series 2006-3, Class A3
2.5819% due 06/25/2046 (b)		1,452,105		1,435,999
Thornburg Mortgage Securities Trust, Series 2007-4, Class 2A1
6.2165% due 09/25/2037 (b)		655,455		573,063
Thornburg Mortgage Securities Trust, Series 2007-4, Class 3A1
6.2155% due 09/25/2037 (b)		625,588		546,454
WaMu Mortgage Pass-Through Certificates, Series 2005-AR17, Class A1A1
2.7419% due 12/25/2045 (b)		820,938		510,317
Washington Mutual, Inc., Series 2005-AR13, Class A1B3
2.8319% due 10/25/2045 (b)		557,108		233,203

 

U.S. Government Securities Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Washington Mutual, Inc., Series 2005-AR8, Class 2A1A
2.7619% due 07/25/2045 (b)	$	792,480	$	531,315
Zuni Mortgage Loan Trust, Series 2006-OA1, Class A1
2.6019% due 08/25/2036 (b)		735,583		706,464
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $43,713,571)			$	34,693,626
ASSET BACKED SECURITIES - 9.65%
ACE Securities Corp., Series 2006-GP1, Class A
2.6019% due 02/25/2031 (b)		761,393		592,573
ACE Securities Corp., Series 2006-SL3, Class A1
2.5719% due 06/25/2036 (b)		783,968		260,775
Aegis Asset Backed Securities Trust, Series 2004-2, Class A3
2.9519% due 06/25/2034 (b)		173,194		156,087
Amortizing Residential Collateral Trust, Series 2001-BC6, Class A
3.1719% due 10/25/2031 (b)		583,503		541,517
Bravo Mortgage Asset Trust, Series 2006-1A, Class A1
2.6019% due 07/25/2036 (b)(h)		452,733		440,115
Countrywide Asset-Backed Certificates, Series 2002-BC2, Class A
3.0119% due 04/25/2032 (b)		316,019		276,747
Countrywide Home Equity Loan Trust, Series 2004-I, Class A
2.7569% due 02/15/2034 (b)		723,357		508,797
Countrywide Home Equity Loan Trust, Series 2005-E, Class 2A
2.6869% due 11/15/2035 (b)		264,465		136,025
Countrywide Home Equity Loan Trust, Series 2006-E, Class 2A
2.6069% due 07/15/2036 (b)		904,278		524,826
Countrywide Home Equity Loan Trust, Series 2006-RES, Class 4E1B
2.7269% due 07/25/2036 (b)(h)		786,775		275,371
Countrywide Home Equity Loan Trust, Series 2006-RES, Class 4F1B
2.7269% due 07/25/2036 (b)(h)		905,358		316,875
Countrywide Home Equity Loan Trust, Series 2007-GW, Class A
3.0169% due 08/15/2037 (b)		1,443,338		1,000,791
Credit Suisse Mortgage Capital Certificates, Series 2006-CF2, Class A1
2.7319% due 05/25/2036 (b)(h)		723,730		592,667
GMAC Mortgage Corp. Loan Trust, Series 2006-HE1, Class A
2.6819% due 11/25/2036 (b)		1,604,136		789,961
GSAA Home Equity Trust, Series 2005-5, Class A4
2.7419% due 02/25/2035 (b)		399,554		330,069
GSAMP Trust, Series 2006-S4, Class A1
2.5619% due 05/25/2036 (b)		546,959		252,836
IndyMac Seconds Asset Backed Trust, Series 2006-A, Class A
2.6019% due 06/25/2036 (b)		966,244		273,818
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2006-CB17, Class A4
5.429% due 12/12/2043		2,490,000		2,271,778

 

The accompanying notes are an integral part of the financial statements.

335

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Government Securities Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Long Beach Mortgage Loan Trust, Series 2005-3, Class 2A2
2.7519% due 09/25/2035 (b)	$	585,251	$	564,921
Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-H1, Class 2A1
3.9719% due 10/25/2037 (b)		1,692,416		1,437,496
Morgan Stanley IXIS Real Estate Capital Trust, Series 2006-1, Class A1
2.5019% due 07/25/2036 (b)		11,903		11,874
Morgan Stanley Mortgage Loan Trust, Series 2006-4SL, Class A1
2.6219% due 03/25/2036 (b)		587,405		194,947
Nelnet Student Loan Trust, Series 2008-4, Class A4
4.28% due 04/25/2024 (b)		320,000		309,650
SACO I Trust, Inc., Series 2006-6, Class A
2.6019% due 06/25/2036 (b)		889,761		194,743
SACO I Trust, Inc., Series 2006-7, Class A1
2.6019% due 07/25/2036 (b)		973,536		186,524
SLM Student Loan Trust, Series 2006-5, Class A2
2.79% due 07/25/2017 (b)		757,563		755,483
Structured Asset Securities Corp., Series 2006-ARS1, Class A1
2.5819% due 02/25/2036 (b)(h)		979,348		221,832
Truman Capital Mortgage Loan Trust, Series 2006-1, Class A
2.7319% due 03/25/2036 (b)(h)		1,028,556		514,278
Washington Mutual, Inc., Series 2007-HE3, Class 2A2
2.6419% due 05/25/2037 (b)		2,300,000		1,762,792
Washington Mutual, Inc., Series 2007-HE3, Class 2A4
2.7619% due 05/25/2037 (b)		1,200,000		540,076
Lehman XS Trust, Series 2006-2N, Class 1A1
2.7319% due 02/25/2046 (b)		1,088,981		666,472
Lehman XS Trust, Series 2006-GP3, Class 3A1A
2.5419% due 06/25/2046 (b)		856,698		800,404
Lehman XS Trust, Series 2006-GP4, Class 3A1A
2.5419% due 08/25/2046 (b)		982,397		801,991
RAAC Series, Series 2006-RP3, Class A
2.7419% due 05/25/2036 (b)(h)		983,872		805,811
TOTAL ASSET BACKED SECURITIES (Cost $30,069,253)			$	19,310,922
PREFERRED STOCKS - 0.29%
Financial Services - 0.29%
Federal Home Loan Mortgage Corp., Series Z, 8.375%		23,775		334,039
Federal National Mortgage Association, Series S, 8.25%		17,050		244,667
				578,706
TOTAL PREFERRED STOCKS (Cost $1,020,625)			$	578,706

 

U.S. Government Securities Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 23.69%
Merrill Lynch Tri-Party Repurchase Agreement dated 08/29/2008 at 2.06% to be repurchased at $47,410,849 on 09/02/2008, collateralized by $44,612,000 Federal National Mortgage Association, 7.125% due 06/15/2010 (valued at $48,348,001, including interest)	$	47,400,000	$	47,400,000
TOTAL REPURCHASE AGREEMENTS (Cost $47,400,000)			$	47,400,000
SHORT TERM INVESTMENTS - 7.23%
Federal Home Loan Bank
zero coupon due 01/02/2009	$	5,900,000	$	5,843,960
Federal National Mortgage Association Discount Notes
zero coupon due 12/22/2008		8,000,000		7,943,005
zero coupon due 12/15/2008 ****		673,000		668,922
TOTAL SHORT TERM INVESTMENTS (Cost $14,455,887)			$	14,455,887
Total Investments (U.S. Government Securities Fund) (Cost $303,780,158) - 142.13%			$	284,356,517
Liabilities in Excess of Other Assets - (42.13)%				(84,284,614	)
TOTAL NET ASSETS - 100.00%			$	200,071,903

 

U.S. High Yield Bond Fund
	Shares or Principal Amount		Value
CORPORATE BONDS - 76.24%
Advertising - 0.95%
Lamar Media Corp.
6.625% due 08/15/2015	$	2,325,000	$	2,063,437
Lamar Media Corp., Series B
6.625% due 08/15/2015		75,000		66,469
Lamar Media Corp., Series C
6.625% due 08/15/2015		1,730,000		1,533,213
Sheridan Group, Inc.
10.25% due 08/15/2011		1,500,000		1,365,000
				5,028,119
Agriculture - 0.53%
Mosaic Company
7.375% due 12/01/2014 (h)		715,000		739,405
7.625% due 12/01/2016 (h)		1,953,000		2,053,835
				2,793,240
Air Travel - 0.05%
Continental Airlines, Inc., Series 00-1
8.499% due 05/01/2011		291,228		278,123
Auto Parts - 0.77%
Allison Transmission, Inc.
11.00% due 11/01/2015 (a)(h)		2,285,000		2,102,200
11.25% due 11/01/2015 (h)		2,225,000		1,980,250
				4,082,450

 

The accompanying notes are an integral part of the financial statements.

336

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Auto Services - 1.37%
KAR Holdings, Inc.
8.75% due 05/01/2014	$	1,200,000	$	1,060,500
10.00% due 05/01/2015		7,355,000		6,196,588
				7,257,088
Automobiles - 1.67%
Ford Motor Company
7.45% due 07/16/2031		1,545,000		795,675
General Motors Corp.
7.20% due 01/15/2011		4,050,000		2,602,125
7.375% due 05/23/2048		1,500,000		630,000
Sonic Automotive, Inc., Series B
8.625% due 08/15/2013		3,058,000		2,354,660
United Auto Group, Inc.
7.75% due 12/15/2016		3,050,000		2,474,312
				8,856,772
Banking - 0.14%
Chevy Chase Bank
6.875% due 12/01/2013		900,000		758,250
Broadcasting - 1.42%
Barrington Broadcasting Group LLC
10.50% due 08/15/2014		4,400,000		3,718,000
Fisher Communications, Inc.
8.625% due 09/15/2014		3,375,000		3,434,062
Muzak Finance Corp.
13.00% due 03/15/2010		700,000		350,000
				7,502,062
Building Materials & Construction - 0.27%
Esco Corp.
6.6512% due 12/15/2013 (b)(h)		625,000		587,500
8.625% due 12/15/2013 (h)		825,000		829,125
				1,416,625
Business Services - 4.27%
Affinity Group, Inc.
9.00% due 02/15/2012		900,000		801,000
10.875% due 02/15/2012		474,468		415,159
Cornell Companies, Inc.
10.75% due 07/01/2012		600,000		606,000
First Data Corp.
9.875% due 09/24/2015 (h)		5,750,000		4,959,375
Iron Mountain, Inc.
8.00% due 06/15/2020		1,250,000		1,215,625
NCO Group, Inc.
11.875% due 11/15/2014		2,075,000		1,654,813
Rural/Metro Corp.
9.875% due 03/15/2015		1,900,000		1,710,000
SunGard Data Systems, Inc.
3.75% due 01/15/2009		125,000		124,375
4.875% due 01/15/2014		600,000		527,250
9.125% due 08/15/2013		365,000		370,475
10.25% due 08/15/2015		10,121,000		10,196,907
				22,580,979
Cable & Television - 6.83%
Charter Communications Holdings II LLC/ Charter Communications Holdings II Capital Corp.
10.25% due 09/15/2010		1,000,000		960,000

 

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cable & Television (continued)
Charter Communications Operating LLC
8.00% due 04/30/2012 (h)	$	6,700,000	$	6,465,500
8.375% due 04/30/2014 (h)		6,000,000		5,782,500
CSC Holdings, Inc.
6.75% due 04/15/2012		2,275,000		2,218,125
CSC Holdings, Inc., Series B
7.625% due 04/01/2011		1,700,000		1,708,500
8.125% due 08/15/2009		300,000		304,500
DirecTV Holdings LLC
6.375% due 06/15/2015		200,000		188,500
8.375% due 03/15/2013		8,725,000		9,030,375
EchoStar DBS Corp.
6.375% due 10/01/2011		750,000		733,125
6.625% due 10/01/2014		650,000		598,000
7.125% due 02/01/2016		3,400,000		3,128,000
7.75% due 05/31/2015		1,450,000		1,384,750
Videotron Ltee.
6.375% due 12/15/2015		1,070,000		999,112
6.875% due 01/15/2014		1,740,000		1,689,975
9.125% due 04/15/2018 (h)		900,000		946,125
				36,137,087
Cellular Communications - 4.25%
Centennial Communications Corp.
8.125% due 02/01/2014		403,000		409,045
10.00% due 01/01/2013		4,200,000		4,368,000
Cricket Communications, Inc.
9.375% due 11/01/2014		1,930,000		1,913,112
9.375% due 11/01/2014		3,375,000		3,345,469
MetroPCS Wireless, Inc.
9.25% due 11/01/2014		3,850,000		3,816,313
Rural Cellular Corp.
5.6819% due 06/01/2013 (b)		2,050,000		2,091,000
8.25% due 03/15/2012		3,848,000		4,006,730
9.875% due 02/01/2010		2,500,000		2,562,500
				22,512,169
Chemicals - 1.22%
American Pacific Corp.
9.00% due 02/01/2015		1,500,000		1,455,000
Huntsman International LLC
7.875% due 11/15/2014		1,575,000		1,464,750
Innophos Holdings, Inc.
9.50% due 04/15/2012 (h)		600,000		600,000
Innophos, Inc.
8.875% due 08/15/2014		2,850,000		2,921,250
				6,441,000
Commercial Services - 0.68%
Mac-Gray Corp.
7.625% due 08/15/2015		3,770,000		3,590,925
Computer Services - 0.19%
Affiliated Computer Services, Inc.
5.20% due 06/01/2015		1,200,000		984,000
Computers & Business Equipment - 0.65%
Seagate Technology HDD Holdings
6.80% due 10/01/2016		3,850,000		3,436,125

 

The accompanying notes are an integral part of the financial statements.

337

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Containers & Glass - 1.74%
Crown Holdings, Inc.
8.00% due 04/15/2023	$	5,015,000	$	4,463,350
Graham Packaging Company
9.875% due 10/15/2014		2,560,000		2,246,400
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		1,675,000		1,725,250
Owens-Illinois, Inc.
7.80% due 05/15/2018		750,000		757,500
				9,192,500
Correctional Facilities - 1.07%
Corrections Corp. of America
6.25% due 03/15/2013		1,400,000		1,372,000
6.75% due 01/31/2014		835,000		828,737
Geo Group, Inc.
8.25% due 07/15/2013		3,440,000		3,474,400
				5,675,137
Crude Petroleum & Natural Gas - 3.75%
AmeriGas Partners LP
7.125% due 05/20/2016		2,200,000		2,046,000
7.25% due 05/20/2015		1,300,000		1,231,750
Calfrac Holdings LP
7.75% due 02/15/2015 (h)		2,925,000		2,647,125
Chesapeake Energy Corp.
6.375% due 06/15/2015		200,000		186,000
6.625% due 01/15/2016		1,000,000		937,500
6.875% due 01/15/2016		600,000		576,000
6.875% due 11/15/2020		2,000,000		1,845,000
7.25% due 12/15/2018		500,000		487,500
7.50% due 09/15/2013		800,000		808,000
7.50% due 06/15/2014		1,355,000		1,361,775
Forest Oil Corp.
7.25% due 06/15/2019 (h)		325,000		299,000
Hilcorp Energy I LP
7.75% due 11/01/2015 (h)		4,030,000		3,647,150
Hilcorp Energy I LP/Hilcorp Finance Company
9.00% due 06/01/2016 (h)		925,000		901,875
SandRidge Energy, Inc.
8.00% due 06/01/2018 (h)		1,000,000		937,500
SandRidge Energy, Inc., PIK
8.625% due 04/01/2015 (h)		2,000,000		1,930,000
				19,842,175
Drugs & Health Care - 0.13%
Omnicare, Inc.
6.125% due 06/01/2013		750,000		693,750
Educational Services - 0.24%
Education Management Corp.
8.75% due 06/01/2014		1,375,000		1,252,969
Electrical Utilities - 0.18%
Ipalco Enterprises, Inc.
7.25% due 04/01/2016 (h)		950,000		952,375
Electronics - 0.70%
L-3 Communications Corp.
5.875% due 01/15/2015		2,400,000		2,262,000
L-3 Communications Corp., Series B
6.375% due 10/15/2015		1,513,000		1,448,698
				3,710,698

 

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Energy - 2.37%
NRG Energy, Inc.
7.25% due 02/01/2014	$	550,000	$	542,438
7.375% due 02/01/2016		5,548,000		5,478,650
7.375% due 01/15/2017		6,650,000		6,500,375
				12,521,463
Financial Services - 5.40%
CIT Group, Inc.
5.65% due 02/13/2017		1,250,000		877,776
6.00% due 04/01/2036		3,175,000		2,114,902
El Paso Performance-Linked Trust
7.75% due 07/15/2011 (h)		1,300,000		1,314,297
Ford Motor Credit Company
7.00% due 10/01/2013		1,950,000		1,412,798
7.375% due 10/28/2009		500,000		464,712
8.00% due 12/15/2016		6,650,000		4,791,544
General Motors Acceptance Corp.
6.75% due 12/01/2014		800,000		434,373
General Motors Nova Scotia Finance Company
6.85% due 10/15/2008		2,000,000		1,985,000
GMAC LLC
6.00% due 12/15/2011		3,165,000		1,896,424
Lender Processing Services, Inc.
8.125% due 07/01/2016 (h)		2,300,000		2,337,375
NSG Holdings, Inc.
7.75% due 12/15/2025 (h)		2,125,000		2,040,000
Nuveen Investments, Inc.
10.50% due 11/15/2015 (h)		8,085,000		7,013,738
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp
10.625% due 04/01/2017		600,000		480,000
TRAINS HY-2006 - -1
7.39% due 05/01/2016 (h)		1,518,000		1,433,539
				28,596,478
Food & Beverages - 0.60%
Del Monte Corp.
8.625% due 12/15/2012		3,150,000		3,181,500
Funeral Services - 1.09%
Service Corp. International
6.75% due 04/01/2016		500,000		460,000
7.00% due 06/15/2017		2,300,000		2,144,750
7.50% due 04/01/2027		2,808,000		2,295,540
7.875% due 02/01/2013		850,000		852,125
				5,752,415
Gas & Pipeline Utilities - 4.19%
El Paso Corp.
6.875% due 06/15/2014		500,000		495,319
7.00% due 06/15/2017		2,950,000		2,890,298
7.25% due 06/01/2018		2,500,000		2,456,250
7.75% due 01/15/2032		3,925,000		3,854,707
MarkWest Energy Partners LP/ MarkWest Energy Finance Corp.
8.75% due 04/15/2018 (h)		600,000		597,000
MarkWest Energy Partners LP/ MarkWest Energy Finance Corp., Series B
8.50% due 07/15/2016		2,340,000		2,340,000

 

The accompanying notes are an integral part of the financial statements.

338

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
Sabine Pass LNG LP
7.50% due 11/30/2016	$	10,920,000	$	9,555,000
				22,188,574
Healthcare Products - 1.33%
Biomet, Inc.
11.625% due 10/15/2017		3,640,000		3,826,550
The Cooper Companies, Inc.
7.125% due 02/15/2015		3,325,000		3,192,000
				7,018,550
Healthcare Services - 0.59%
Centene Corp.
7.25% due 04/01/2014		2,125,000		1,992,188
DaVita, Inc.
6.625% due 03/15/2013		350,000		341,250
Healthsouth Corp.
10.75% due 06/15/2016		750,000		806,250
				3,139,688
Hotels & Restaurants - 0.90%
O’Charleys, Inc.
9.00% due 11/01/2013		5,325,000		4,765,875
Household Appliances - 0.64%
ALH Finance LLC
8.50% due 01/15/2013		3,650,000		3,403,625
Industrial Machinery - 1.03%
Altra Industrial Motion, Inc.
9.00% due 12/01/2011		1,325,000		1,374,687
Baldor Electric Company
8.625% due 02/15/2017		2,400,000		2,430,000
H&E Equipment Services, Inc.
8.375% due 07/15/2016		1,875,000		1,621,875
				5,426,562
Insurance - 0.38%
USI Holdings Corp.
9.75% due 05/15/2015 (h)		2,500,000		1,993,750
Leisure Time - 3.22%
AMC Entertainment, Inc., Series B
8.625% due 08/15/2012		2,932,000		3,019,960
Chukchansi Economic Development Authority
6.3275% due 11/15/2012 (b)(h)		450,000		361,125
8.00% due 11/15/2013 (h)		2,192,000		1,802,920
Cinemark, Inc.
zero coupon, step up to 9.75% on 03/15/2009 due 03/15/2014		1,950,000		1,881,750
MGM Mirage, Inc.
6.00% due 10/01/2009		1,925,000		1,886,500
8.50% due 09/15/2010		1,250,000		1,209,375
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		500,000		411,250
Penn National Gaming, Inc.
6.875% due 12/01/2011		1,850,000		1,757,500
River Rock Entertainment Authority
9.75% due 11/01/2011		2,810,000		2,613,300
San Pasqual Casino Development Group
8.00% due 09/15/2013 (h)	��	1,915,000		1,742,650

 

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Leisure Time (continued)
Speedway Motorsports, Inc.
6.75% due 06/01/2013	$	375,000	$	357,187
				17,043,517
Machinery-General Indust - 0.22%
Rexnord Holdings, Inc.
9.68% due 02/21/2013		1,426,520		1,141,216
Manufacturing - 0.30%
Susser Holdings LLC
10.625% due 12/15/2013		1,565,000		1,572,825
Medical-Hospitals - 4.74%
Community Health Systems, Inc.
8.875% due 07/15/2015		6,185,000		6,246,850
HCA, Inc.
7.875% due 02/01/2011		885,000		873,937
9.125% due 11/15/2014		600,000		616,500
9.25% due 11/15/2016		6,050,000		6,223,938
9.625% due 11/15/2016		1,200,000		1,210,500
Multiplan, Inc.
10.375% due 04/15/2016 (h)		2,700,000		2,646,000
Sun Healthcare Group, Inc.
9.125% due 04/15/2015		1,875,000		1,875,000
Tenet Healthcare Corp.
6.375% due 12/01/2011		2,400,000		2,316,000
6.875% due 11/15/2031		657,000		473,040
United Surgical Partners International, Inc.
8.875% due 05/01/2017		3,050,000		2,623,000
				25,104,765
Mining - 1.22%
Freeport-McMoRan Copper & Gold, Inc.
8.25% due 04/01/2015		1,450,000		1,522,500
8.375% due 04/01/2017		4,675,000		4,955,500
		6,478,000
Oil & Gas Drilling - 0.00%
National Oilwell Varco, Inc., Series B
6.125% due 08/15/2015		23,000		22,354
Paper - 0.46%
AbitibiBowater, Inc.
9.375% due 12/15/2021		675,000		384,750
Abitibi-Consolidated Company of Canada
6.00% due 06/20/2013		23,000		9,315
Bowater Canada Finance Corp.
7.95% due 11/15/2011		23,000		14,375
Georgia-Pacific Corp.
7.125% due 01/15/2017 (h)		705,000		653,887
Neenah Paper, Inc.
7.375% due 11/15/2014		800,000		676,000
P. H. Glatfelter Company
7.125% due 05/01/2016		725,000		712,313
				2,450,640
Petroleum Services - 1.23%
Key Energy Services, Inc.
8.375% due 12/01/2014 (h)		3,100,000		3,123,250
Swift Energy Company
7.125% due 06/01/2017		3,750,000		3,365,625
				6,488,875

 

The accompanying notes are an integral part of the financial statements.

339

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Pharmaceuticals - 0.37%
Omnicare, Inc.
6.875% due 12/15/2015	$	2,095,000	$	1,969,300
Publishing - 0.63%
Nielsen Finance LLC
4.8025 due 08/01/2016 (b)		4,200,000		2,877,000
10.00% due 08/01/2014		450,000		455,625
				3,332,625
Real Estate - 1.42%
Host Marriott LP
7.125% due 11/01/2013		250,000		235,625
Host Marriott LP, Series M, REIT
7.00% due 08/15/2012		3,775,000		3,529,625
Host Marriott LP, Series Q, REIT
6.75% due 06/01/2016		4,350,000		3,741,000
				7,506,250
Retail - 0.15%
Suburban Propane Partners LP
6.875% due 12/15/2013		850,000		773,500
Sanitary Services - 0.79%
Allied Waste North America, Inc.
6.50% due 11/15/2010		800,000		804,000
6.875% due 06/01/2017		1,500,000		1,477,500
Allied Waste North America, Inc., Series B
5.75% due 02/15/2011		300,000		297,750
7.125% due 05/15/2016		1,600,000		1,616,000
				4,195,250
Semiconductors - 0.26%
NXP BV/NXP Funding LLC
5.5406% due 10/15/2013 (b)		1,755,000		1,364,513
Software - 0.71%
Open Solutions, Inc.
9.75% due 02/01/2015 (h)		5,320,000		3,777,200
Telecommunications Equipment & Services - 1.45%
American Tower Corp.
7.00% due 10/15/2017 (h)		3,960,000		3,940,200
Citizens Communications Company
7.05% due 10/01/2046		1,100,000		723,250
Time Warner Telecom Holdings, Inc.
9.25% due 02/15/2014		2,325,000		2,356,969
United States West Communications, Inc.
6.875% due 09/15/2033		850,000		629,000
				7,649,419
Telephone - 5.04%
Alltel Corp.
7.875% due 07/01/2032		2,100,000		2,163,000
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		3,450,000		3,139,500
Qwest Corp.
6.0262% due 06/15/2013 (b)		1,250,000		1,156,250
6.50% due 06/01/2017		1,250,000		1,056,250
7.50% due 06/15/2023		1,000,000		835,000
7.50% due 10/01/2014		500,000		463,750
7.625% due 06/15/2015		300,000		278,250
8.875% due 03/15/2012		2,300,000		2,317,250

 

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telephone (continued)
Sprint Capital Corp.
8.75% due 03/15/2032	$	14,200,000	$	13,809,500
Valor Telecommunications Enterprise LLC
7.75% due 02/15/2015		1,450,000		1,466,008
				26,684,758
Tires & Rubber - 0.40%
American Tire Distributors Holdings, Inc.
9.0413% due 04/01/2012 (b)		450,000		400,500
10.75% due 04/01/2013		1,475,000		1,261,125
Goodyear Tire & Rubber Company
7.857% due 08/15/2011		475,000		477,375
				2,139,000
Tobacco - 0.52%
Reynolds American, Inc.
6.50% due 07/15/2010		250,000		257,547
7.625% due 06/01/2016		2,400,000		2,488,752
				2,746,299
Transportation - 1.52%
Gulfmark Offshore, Inc.
7.75% due 07/15/2014		3,225,000		3,176,625
Overseas Shipholding Group, Inc.
7.50% due 02/15/2024		3,595,000		3,280,438
Trailer Bridge, Inc.
9.25% due 11/15/2011		1,750,000		1,610,000
				8,067,063
TOTAL CORPORATE BONDS (Cost $423,753,788)			$	403,470,467
ASSET BACKED SECURITIES - 0.18%
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (h)		1,250,000		953,912
TOTAL ASSET BACKED SECURITIES (Cost $1,249,976)			$	953,912
TERM LOANS - 19.07%
Advertising - 0.08%
Getty Images, Inc.
7.25% due 07/02/2015 (b)		450,000		448,988
Agriculture - 0.05%
Bolthouse, Term Loan B
5.0625% due 06/30/2012		250,000		242,500
Apparel & Textiles - 0.09%
Iconix Brand Group, Inc.
5.14% due 11/07/2013 (b)		500,000		467,500
Auto Parts - 0.67%
Federal Mogul Corp., Tranche B
4.3975% due 12/27/2014 (b)(l)		1,951,534		1,514,058
Federal Mogul Corp., Tranche C
4.7375% due 12/27/2015 (b)(l)		1,440,947		1,109,530
Pep Boys - Manny, Moe & Jack
4.65% due 01/31/2013 (b)		240,364		221,735
Tire Rack Holdings, Inc.
4.434% due 06/24/2012 (b)		757,076		726,793
				3,572,116

 

The accompanying notes are an integral part of the financial statements.

340

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Automobiles - 1.10%
Ford Motor Company, Tranche B
5.47% due 11/29/2013 (b)	$	3,815,193	$	2,958,377
General Motors Corp., Tranche B
7.0556% due 11/17/2013 (b)		3,837,741		2,845,224
				5,803,601
Broadcasting - 0.19%
Citadel Broadcasting Corp.
4.745% due 06/12/2014 (b)		1,250,000		1,006,250
Business Services - 1.01%
Coinmach Laundry Corp.
5.81% due 12/19/2012 (b)(l)		1,000,000		917,500
Education Management Corp., Tranche C	��
4.50% due 05/29/2011 (b)		960,909		876,349
Reynolds & Reynolds Company, Inc.
4.6775% due 10/24/2012 (b)		358,035		331,183
Reynolds & Reynolds Company, Inc., Tranche 2
10.3425% due 10/01/2013 (b)		1,125,000		1,032,188
Reynolds & Reynolds Company, Inc., Tranche 3
10.1775% due 04/01/2014 (b)		625,000		571,875
SunGard Data Systems, Inc., Tranche B1
5.1619% due 01/31/2013 (b)		1,702,862		1,596,228
				5,325,323
Cable & Television - 1.21%
Charter Communications Operating LLC, Tranche 3
7.6981% due 03/01/2014 (b)		750,000		601,875
Charter Communications Operating LLC, Tranche B1
5.1713% due 03/06/2014 (b)		746,250		651,850
CSC Holdings, Inc.
4.225% due 03/23/2013 (b)		3,189,400		3,034,905
Direct TV, Tranche C
5.25% due 04/13/2013 (b)		750,000		744,848
Gray TV
4.19% due 12/31/2014 (b)		1,122,795		931,920
Local TV Finance LLC
4.869% due 05/07/2013 (b)		498,741		433,904
				6,399,302
Cellular Communications - 0.28%
Crown Castle International Corp.
4.3006% due 03/05/2014 (b)		1,609,026		1,503,442
Chemicals - 0.40%
Celanese Holdings LLC, Letter of Credit
7.0994% due 04/02/2014 (b)		1,074,779		1,012,592
Celanese Holdings LLC, Tranche B
2.8025% due 04/02/2014 (b)		166,667		157,024
Huntsman International LLC
4.4275% due 04/19/2014 (b)		989,300		930,565
				2,100,181
Commercial Services - 0.13%
Safety-Kleen, Corp., Letter of Credit
3.125% due 07/27/2013 (b)		152,542		140,339
Safety-Kleen, Corp., Tranche B
5.625% due 07/27/2013 (b)		574,513		528,552
				668,891

 

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Computer Services - 0.33%
Affiliated Computer Services, Inc.
4.4663% due 03/29/2013 (l)	$	1,335,946	$	1,295,039
4.46875% due 03/29/2013 (b)(l)		461,510		447,665
				1,742,704
Containers & Glass - 0.09%
Owens-Illinois, Inc.
3.9769% due 06/14/2013 (b)		489,770		476,301
Crude Petroleum & Natural Gas - 0.10%
Coffeyville Resources, Inc., Letter of Credit
4.6288% due 12/28/2010 (b)		129,730		118,865
Coffeyville Resources, Inc., Tranche D
7.00% due 12/28/2013 (b)		419,928		384,759
				503,624
Electrical Utilities - 1.49%
Calpine Corp., Tranche B
5.685% due 03/29/2009 (b)		6,583,041		6,107,614
NSG Holdings
4.28% due 06/15/2014 (b)		176,473		163,238
NSG Holdings, Letter of Credit
4.28% due 06/15/2014 (b)		24,169		22,356
Texas Competitive Electric Holdings Company LLC
6.2623% due 10/10/2014 (b)		1,742,478		1,619,633
				7,912,841
Energy - 1.25%
Covanta Energy Corp., Letter of Credit
4.6025% due 02/02/2014 (b)		595,484		565,710
Covanta Energy Corp., Tranche B
4.1875% due 02/02/2014 (b)		1,194,456		1,134,734
Longview Power LLC, Letter of Credit
5.00% due 02/28/2013 (b)		166,667		147,083
Longview Power LLC, Tranche B
5.625% due 02/28/2014 (b)		500,000		440,000
Longview Power LLC, Tranche Delayed Draw
4.9375% due 02/28/2014 (b)		583,333		514,792
NRG Energy, Inc.
6.9481% due 02/01/2013 (b)		1,495,647		1,417,125
NRG Energy, Inc., Tranche L
7.11% due 02/01/2013 (b)		732,624		694,162
Tenaska Power, 1st Lien Term Loan
4.8006% due 12/15/2013 (l)		1,421,650		1,362,751
Tenaska Power, Term Loan
2.60% due 12/15/2011 (l)		90,298		87,138
Tenaska Power, Term Loan Letter
2.60% due 12/15/2013 (l)		288,051		276,117
				6,639,612
Financial Services - 1.66%
BNY ConvergEx Group, Tranche 1
5.81% due 08/17/2013 (b)		1,250,000		1,155,475
Emdeon Business Services LLC, Tranche 1B
4.70% due 11/16/2013 (b)		472,632		444,274
Emdeon Business Services LLC, Tranche 2
9.83% due 05/16/2014 (b)		1,000,000		920,000
Linsco/Private Ledger Corp., Tranche B
8.762% due 06/27/2013 (b)		2,363,141		2,233,169
TD Ameritrade Holding Corp.
6.63% due 12/31/2012 (b)		1,000,000		971,250

 

The accompanying notes are an integral part of the financial statements.

341

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
		Shares or Principal Amount		Value
TERM LOANS (continued)
Financial Services (continued)
TPF Generation Holdings LLC, Tranche 2
9.08% due 12/15/2014 (b)		$	800,000	$	716,400
VNU, Inc., Tranche B
5.3463% due 08/09/2013 (b)			1,903,126		1,756,033
Wimar Landco LLC, Tranche B
6.25% due 09/03/2008 (b)			750,000		589,500
					8,786,101
Food & Beverages - 0.89%
Dean Foods Company, Tranche B
4.55% due 03/01/2014 (b)			1,481,250		1,384,702
Dole Foods Company, Tranche B
4.8855% due 04/12/2013 (b)			647,350		594,753
Dole Foods Company, Tranche C
4.8125% due 04/12/2013 (b)			2,598,303		2,387,191
Dole Foods, Letter of Credit
2.58% due 04/12/2013 (b)			354,415		325,618
					4,692,264
Gas & Pipeline Utilities - 0.62%
Dynegy Holdings, Inc.
3.9594% due 04/02/2013 (b)			1,287,868		1,189,062
Dynegy Holdings, Inc., Tranche B
3.96% due 03/31/2013 (b)			462,037		426,590
Energy Transfer Equity
4.5075% due 11/01/2012 (b)			1,250,000		1,210,163
Targa Resources, Letter of Credit
4.5713% due 10/05/2011 (b)			90,193		85,909
Targa Resources, Tranche B
4.6494% due 10/05/2012 (b)			361,714		344,533
					3,256,257
Healthcare Services - 0.47%
Carestream Health, Inc., Tranche B
4.6981% due 04/30/2013 (b)			692,252		617,835
Carestream Health, Inc., Tranche B2
10.0813% due 10/30/2013 (b)			500,000		335,000
Healthsouth Corp., Tranche B
5.085% due 03/10/2013 (b)			886,325		835,042
Sun Healthcare Group, Inc.
4.8119% due 04/12/2014 (b)	��		547,426		506,369
Sun Healthcare Group, Inc., Letter of Credit
2.5963% due 04/12/2014 (b)			124,251		114,932
Sun Healthcare Group, Inc., Tranche Delayed Draw
4.98% due 04/12/2014 (b)			76,770		71,013
					2,480,191
Hotels & Restaurants - 0.09%
Sagittarius Restaurants LLC
9.50% due 03/29/2013 (b)			684,943		488,022
Insurance - 0.36%
AmWINS Group, Inc.
4.98% due 06/07/2013 (b)			1,151,231		938,253
8.23% due 06/07/2014 (b)			750,000		487,500
Kepler Holdings, Ltd.
10.82% due 06/30/2009 (b)			500,000		470,000
					1,895,753

 

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Leisure Time - 1.89%
BLB Wembley Holdings, Inc.
5.44% due 06/30/2011 (b)	$	682,990	$	486,630
Bombardier Recreational Products, Inc., Tranche B
6.46% due 06/26/2013 (b)		594,937		523,544
CCM Merger, Inc.
4.8106% due 07/21/2012 (b)		738,173		657,897
Golden Nugget, Inc.
7.21% due 12/14/2014 (b)		750,000		457,500
Greek Town Holdings
5.50% due 03/23/2014 (b)		758,453		688,834
Greektown Casino LLC, Tranche B
5.50% due 12/03/2012 (b)		1,600,000		1,453,136
Greenwood Racing
4.64% due 11/14/2011 (b)		979,856		911,266
HMSC
8.2159% due 04/03/2014 (b)		550,000		401,500
HMSC, Tranche 1 Lien
4.9659% due 04/03/2014 (b)		398,990		291,263
Live Nation Worldwide
5.45% due 12/21/2013 (b)		498,741		472,557
National Cinemedia LLC
4.54% due 02/13/2015 (b)		312,000		281,268
Penn National Gaming, Inc.
4.88% due 05/26/2012 (b)(l)		2,237,277		2,139,911
Regal Cinemas Corp.
4.1963% due 11/10/2010 (b)		249,365		235,152
Riviera Holding Corp.
4.68% due 06/08/2014 (b)		1,250,000		1,025,000
	��			10,025,458
Medical-Hospitals - 0.94%
Community Health Systems, Inc., Tranche B
4.741% due 06/30/2014 (b)		2,765,998		2,613,481
Community Health Systems, Inc., Tranche Delayed Draw
5.06% due 06/30/2014 (b)(l)		141,462		133,662
HCA, Inc., Tranche B
5.0506% due 11/01/2013 (b)		2,131,484		1,997,605
Health Management Associate, Inc.
4.4463% due 02/28/2014 (b)		242,622		222,346
				4,967,094
Paper - 0.91%
Georgia-Pacific Corp., Tranche B
4.4456% due 12/23/2012 (b)		2,801,810		2,645,666
Georgia-Pacific Corp., Tranche B2
4.5506% due 12/22/2012 (b)		2,323,164		2,193,694
				4,839,360
Real Estate - 0.21%
Capital Automotive LP, REIT
4.21% due 12/16/2010 (b)		1,169,789		1,099,953
Retail - 0.57%
Toys R Us, Inc., Tranche B
5.4594% due 12/01/2008 (b)		3,250,000		3,032,250
Sanitary Services - 0.42%
Allied Waste North America, Inc.
3.97% due 03/28/2014 (b)		889,038		867,923
5.1206% due 03/28/2014 (b)		610,157		596,172

 

The accompanying notes are an integral part of the financial statements.

342

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)
	Shares or Principal Amount		Value
TERM LOANS (continued)
Sanitary Services (continued)
Waste Services, Inc., Tranche B
5.15% due 04/30/2011 (b)	$	783,418	$	773,626
				2,237,721
Semiconductors - 0.09%
Marvell Technology Group, Inc.
5.1963% due 11/08/2009 (b)		481,875		477,056
Telecommunications Equipment & Services - 0.21%
Level 3 Communications, Inc.
4.7269% due 03/01/2014 (b)		1,250,000		1,130,625
Tires & Rubber - 0.68%
Goodyear Tire & Rubber Company, Tranche 2
6.43% due 04/30/2014 (b)		3,950,000		3,595,724
Transportation - 0.59%
Oshkosh Truck Corp., Tranche B
4.20% due 12/06/2013 (b)		699,375		637,417
Rail America CND, Term Loan B
6.79% due 08/14/2009		152,000		150,100
Rail America US, Term Loan B
6.79% due 08/14/2009		2,348,000		2,318,650
				3,106,167
TOTAL TERM LOANS (Cost $107,175,194)			$	100,923,172
REPURCHASE AGREEMENTS - 3.00%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $15,887,000 on 09/02/2008, collateralized by $15,945,000 Federal Home Loan Mortgage Corp., 4.25% due 07/15/2009 (valued at $16,204,106, including interest)	$	15,884,000	$	15,884,000
TOTAL REPURCHASE AGREEMENTS (Cost $15,884,000)			$	15,884,000
SHORT TERM INVESTMENTS - 0.24%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	1,261,159	$	1,261,159
TOTAL SHORT TERM INVESTMENTS (Cost $1,261,159)			$	1,261,159
Total Investments (U.S. High Yield Bond Fund) (Cost $549,324,117) - 98.73%			$	522,492,710
Other Assets in Excess of Liabilities - 1.27%				6,747,430
TOTAL NET ASSETS - 100.00%			$	529,240,140

 

U.S. Multi Sector Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 96.35%
Aerospace - 1.75%
General Dynamics Corp.		90,700	$	8,371,610

 

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Aerospace (continued)
Goodrich Corp.		7,600	$	389,500
Lockheed Martin Corp.		820		95,481
Northrop Grumman Corp.		1,500		103,275
Raytheon Company		6,100		365,939
Rockwell Collins, Inc.		1,700		89,403
United Technologies Corp.		98,000		6,427,820
				15,843,028
Agriculture - 0.63%
Archer-Daniels-Midland Company		23,500		598,310
Monsanto Company		44,300		5,061,275
				5,659,585
Apparel & Textiles - 0.24%
Coach, Inc. *		19,600		568,204
Liz Claiborne, Inc.		20,200		327,442
NIKE, Inc., Class B		20,400		1,236,444
				2,132,090
Auto Parts - 0.13%
AutoZone, Inc. *		5,200		713,596
Johnson Controls, Inc.		15,800		488,536
				1,202,132
Auto Services - 0.01%
AutoNation, Inc. * (a)		10,500		119,175
Automobiles - 0.10%
General Motors Corp. (a)		13,100		131,000
PACCAR, Inc.		17,100		736,326
				867,326
Banking - 0.82%
Bank of America Corp.		145,000		4,515,300
BB&T Corp.		22,200		666,000
Comerica, Inc.		8,400		235,956
Fifth Third Bancorp		5,000		78,900
Hudson City Bancorp, Inc.		23,100		425,964
KeyCorp		4,400		52,844
Northern Trust Corp.		1,100		88,429
SunTrust Banks, Inc.		1,900		79,591
U.S. Bancorp		34,200		1,089,612
Wachovia Corp.		13,600		216,104
				7,448,700
Biotechnology - 0.92%
Amgen, Inc. *		100,700		6,328,995
Biogen Idec, Inc. *		17,300		881,089
Genentech, Inc. *		6,600		651,750
Genzyme Corp. *		2,700		211,410
Illumina, Inc. *		900		77,517
Invitrogen Corp. *		3,600		152,856
				8,303,617
Broadcasting - 0.02%
Discovery Holding Company *		8,300		167,909
Building Materials & Construction - 0.01%
Masco Corp.		6,100		116,266
Business Services - 0.45%
Affiliated Computer Services, Inc., Class A *		5,300		282,172

 

The accompanying notes are an integral part of the financial statements.

343

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
Fiserv, Inc. *		37,300	$	1,934,378
Fluor Corp.		11,800		945,534
Jacobs Engineering Group, Inc. *		8,900		656,998
Manpower, Inc.		2,600		124,956
Total Systems Services, Inc.		7,200		143,424
				4,087,462
Cable & Television - 0.01%
DIRECTV Group, Inc. *		3,200		90,272
Chemicals - 0.25%
Air Products & Chemicals, Inc.		6,200		569,470
Dow Chemical Company		10,400		354,952
FMC Corp.		3,100		227,974
Praxair, Inc.		10,700		961,288
Sigma-Aldrich Corp.		3,000		170,280
				2,283,964
Coal - 0.03%
Arch Coal, Inc.		1,600		86,784
Peabody Energy Corp.		2,300		144,785
				231,569
Computers & Business Equipment - 4.05%
Apple, Inc. *		31,600		5,357,148
Cisco Systems, Inc. *		657,800		15,820,090
Cognizant Technology Solutions Corp., Class A *		5,000		146,600
Dell, Inc. *		140,200		3,046,546
EMC Corp. *		42,000		641,760
Hewlett-Packard Company		24,700		1,158,924
International Business Machines Corp.		78,630		9,571,630
Juniper Networks, Inc. *		13,800		354,660
Lexmark International, Inc. *		6,900		248,193
Western Digital Corp. *		11,100		302,586
				36,648,137
Construction & Mining Equipment - 0.03%
Joy Global, Inc.		3,300		234,432
Construction Materials - 0.01%
Sherwin-Williams Company		2,000		117,100
Containers & Glass - 0.05%
Owens-Illinois, Inc. *		9,600		428,160
Cosmetics & Toiletries - 4.64%
Avon Products, Inc.		40,800		1,747,464
Colgate-Palmolive Company		93,300		7,093,599
Estee Lauder Companies, Inc., Class A		26,700		1,328,859
Kimberly-Clark Corp.		76,600		4,724,688
Procter & Gamble Company		388,000		27,070,760
				41,965,370
Crude Petroleum & Natural Gas - 1.90%
Apache Corp.		29,250		3,345,615
Chesapeake Energy Corp.		23,300		1,127,720
Devon Energy Corp.		21,500		2,194,075
EOG Resources, Inc.		11,190		1,168,460
Hess Corp.		16,250		1,701,537
Newfield Exploration Company *		1,800		81,396
Noble Energy, Inc.		2,800		200,844

 

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas (continued)
Occidental Petroleum Corp.		76,500	$	6,071,040
Pioneer Natural Resources Company		1,400		88,438
Plains Exploration & Production Company *		1,500		80,850
Southwestern Energy Company *		11,700		448,929
Sunoco, Inc.		5,700		252,966
XTO Energy, Inc.		9,100		458,731
				17,220,601
Domestic Oil - 0.04%
Denbury Resources, Inc. *		4,600		114,494
Frontier Oil Corp.		5,300		102,661
Range Resources Corp.		3,000		139,260
				356,415
Drugs & Health Care - 0.91%
Wyeth		189,400		8,197,232
Educational Services - 0.18%
Apollo Group, Inc., Class A *		17,000		1,082,560
ITT Educational Services, Inc. *		6,100		542,351
				1,624,911
Electrical Equipment - 0.09%
Emerson Electric Company		14,300		669,240
FLIR Systems, Inc. *		5,000		178,500
				847,740
Electrical Utilities - 0.06%
Exelon Corp.		3,300		250,668
FirstEnergy Corp.		3,000		217,920
The Southern Company		2,500		93,775
				562,363
Electronics - 0.34%
Arrow Electronics, Inc. *		5,600		185,864
Avnet, Inc. *		7,100		208,385
L-3 Communications Holdings, Inc.		25,700		2,671,258
				3,065,507
Financial Services - 1.08%
BlackRock, Inc.		3,390		736,477
Capital One Financial Corp.		2,100		92,694
Charles Schwab Corp.		12,600		302,274
Citigroup, Inc.		245,000		4,652,550
Federal Home Loan Mortgage Corp.		4,600		20,746
Federal National Mortgage Association		65,500		448,020
Goldman Sachs Group, Inc.		1,300		213,161
Leucadia National Corp.		8,800		407,352
MasterCard, Inc., Class A		3,830		928,967
Merrill Lynch & Company, Inc.		3,300		93,555
Morgan Stanley		4,500		183,735
SEI Investments Company		15,700		370,834
State Street Corp.		7,700		521,059
T. Rowe Price Group, Inc.		4,600		273,056
Wells Fargo & Company		3,500		105,945
Western Union Company		15,600		430,872
				9,781,297
Food & Beverages - 9.27%
Campbell Soup Company		8,400		309,204

 

The accompanying notes are an integral part of the financial statements.

344

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Food & Beverages (continued)
General Mills, Inc.		18,600	$	1,230,948
H.J. Heinz Company		8,900		447,848
Hansen Natural Corp. *		3,200		87,936
Kellogg Company		22,700		1,235,788
Kraft Foods, Inc., Class A		63,276		1,993,827
PepsiCo, Inc.		524,100		35,890,368
The Coca-Cola Company		783,600		40,802,052
Tyson Foods, Inc., Class A		16,000		232,320
William Wrigley, Jr. Company		20,600		1,637,288
				83,867,579
Gas & Pipeline Utilities - 0.21%
Transocean, Inc. *		15,180		1,930,896
Healthcare Products - 8.10%
Baxter International, Inc.		4,200		284,592
Becton, Dickinson & Company		2,000		174,760
C.R. Bard, Inc.		900		84,105
Intuitive Surgical, Inc. *		2,600		767,702
Johnson & Johnson		714,400		50,315,192
Medtronic, Inc.		137,300		7,496,580
Stryker Corp.		53,400		3,587,946
Varian Medical Systems, Inc. *		1,400		88,424
Zimmer Holdings, Inc. *		144,600		10,467,594
				73,266,895
Healthcare Services - 5.02%
Cardinal Health, Inc.		20,300		1,116,094
Covance, Inc. *		2,100		198,114
Coventry Health Care, Inc. *		67,400		2,360,348
Express Scripts, Inc. *		58,800		4,316,508
McKesson Corp.		69,900		4,038,822
Medco Health Solutions, Inc. *		24,800		1,161,880
Quest Diagnostics, Inc.		3,700		199,985
UnitedHealth Group, Inc.		845,100		25,733,295
WellPoint, Inc. *		118,300		6,245,057
				45,370,103
Holdings Companies/Conglomerates - 0.04%
Textron, Inc.		8,300		341,130
Homebuilders - 0.03%
Centex Corp.		5,900		95,698
D.R. Horton, Inc.		9,000		112,140
Lennar Corp., Class A		7,200		94,680
				302,518
Hotels & Restaurants - 0.31%
McDonald’s Corp.		38,400		2,382,720
Starbucks Corp. *		6,800		105,808
Yum! Brands, Inc.		9,700		346,096
				2,834,624
Household Products - 0.18%
Clorox Company		11,600		685,560
Energizer Holdings, Inc. *		11,400		968,316
				1,653,876
Industrial Machinery - 0.53%
AGCO Corp. *		1,400		86,282
Cameron International Corp. *		10,500		489,195

 

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery (continued)
Caterpillar, Inc.		7,300	$	516,329
Cummins, Inc.		6,100		397,476
Deere & Company		31,000		2,187,670
Flowserve Corp.		1,700		224,604
FMC Technologies, Inc. *		3,300		176,748
Manitowoc Company, Inc.		2,900		73,022
Parker-Hannifin Corp.		9,900		634,293
				4,785,619
Industrials - 0.03%
Fastenal Company		4,900		254,457
Insurance - 2.05%
Aetna, Inc.		8,900		383,946
AFLAC, Inc.		28,100		1,593,270
Allstate Corp.		79,600		3,592,348
American International Group, Inc.		106,400		2,286,536
Aon Corp.		9,100		432,159
Assurant, Inc.		2,700		157,761
Brown & Brown, Inc.		22,300		453,136
Chubb Corp.		74,700		3,586,347
CNA Financial Corp.		4,000		112,160
First American Corp.		7,900		199,633
Hartford Financial Services Group, Inc.		9,800		618,184
Markel Corp. *		700		259,000
MetLife, Inc.		4,200		227,640
MGIC Investment Corp.		8,300		69,803
Old Republic International Corp.		14,875		162,584
Progressive Corp.		36,300		670,461
SAFECO Corp.		3,400		229,840
The Travelers Companies, Inc.		48,000		2,119,680
Torchmark Corp.		8,700		519,738
Transatlantic Holdings, Inc.		6,600		396,660
Unum Group		12,600		320,166
W.R. Berkley Corp.		4,300		101,308
				18,492,360
International Oil - 12.05%
Anadarko Petroleum Corp.		25,500		1,574,115
Chevron Corp.		480,300		41,459,496
ConocoPhillips		140,700		11,609,157
Exxon Mobil Corp.		652,000		52,166,520
Murphy Oil Corp.		9,700		761,741
Nabors Industries, Ltd. *		6,700		238,520
Noble Corp.		6,700		336,943
Weatherford International, Ltd. *		22,200		856,476
				109,002,968
Internet Content - 1.10%
Google, Inc., Class A *		21,540		9,979,267
Internet Retail - 1.11%
Amazon.com, Inc. *		14,600		1,179,826
eBay, Inc. *		352,500		8,787,825
Priceline.com, Inc. *		900		83,682
				10,051,333
Internet Software - 0.06%
Salesforce.com, Inc. *		3,900		218,478

 

The accompanying notes are an integral part of the financial statements.

345

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Internet Software (continued)
VeriSign, Inc. *		8,800	$	281,336
				499,814
Leisure Time - 0.03%
Carnival Corp.		6,100		226,066
Liquor - 0.12%
Anheuser-Busch Companies, Inc.		15,700		1,065,402
Manufacturing - 1.65%
3M Company		114,900		8,226,840
Danaher Corp.		60,400		4,926,828
Harley-Davidson, Inc.		14,300		568,854
Honeywell International, Inc.		9,100		456,547
SPX Corp.		900		107,325
Tyco International, Ltd.		13,850		593,888
				14,880,282
Metal & Metal Products - 0.07%
Precision Castparts Corp.		3,900		402,714
Reliance Steel & Aluminum Company		3,400		193,834
				596,548
Mining - 0.01%
Freeport-McMoRan Copper & Gold, Inc., Class B		900		80,388
Petroleum Services - 0.63%
Baker Hughes, Inc.		4,200		336,042
BJ Services Company		5,500		147,675
Diamond Offshore Drilling, Inc.		5,100		560,541
Halliburton Company		15,500		681,070
Helmerich & Payne, Inc.		3,500		199,920
Schlumberger, Ltd.		21,070		1,985,215
Smith International, Inc.		7,700		536,690
Valero Energy Corp.		36,800		1,279,168
				5,726,321
Pharmaceuticals - 9.46%
Abbott Laboratories		163,200		9,372,576
AmerisourceBergen Corp.		19,100		783,291
Amylin Pharmaceuticals, Inc. *		4,000		87,920
Bristol-Myers Squibb Company		30,600		653,004
Eli Lilly & Company		267,000		12,455,550
Forest Laboratories, Inc. *		62,500		2,230,625
Gilead Sciences, Inc. *		106,400		5,605,152
Merck & Company, Inc.		199,800		7,126,866
Pfizer, Inc.		2,472,300		47,245,653
				85,560,637
Publishing - 0.04%
Gannett Company, Inc.		20,100		357,579
Railroads & Equipment - 0.24%
Burlington Northern Santa Fe Corp.		5,890		632,586
CSX Corp.		12,300		795,564
Norfolk Southern Corp.		3,300		242,649
Union Pacific Corp.		6,200		520,180
				2,190,979
Retail Grocery - 0.06%
SUPERVALU, Inc.		9,590		222,392

 

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Grocery (continued)
The Kroger Company		12,800	$	353,536
				575,928
Retail Trade - 10.26%
Abercrombie & Fitch Company, Class A		9,300		487,785
American Eagle Outfitters, Inc.		10,600		159,530
Bed Bath & Beyond, Inc. *		24,600		754,236
Best Buy Company, Inc.		8,000		358,160
Costco Wholesale Corp.		16,200		1,086,372
CVS Caremark Corp.		13,900		508,740
Dollar Tree, Inc. *		10,300		395,108
Family Dollar Stores, Inc.		9,900		246,708
GameStop Corp., Class A *		5,200		228,124
Home Depot, Inc.		623,200		16,901,184
J.C. Penney Company, Inc.		2,600		101,322
Kohl’s Corp. *		20,400		1,003,068
Lowe’s Companies, Inc.		226,200		5,573,568
Sears Holdings Corp. * (a)		1,100		101,145
Staples, Inc.		35,500		859,100
Target Corp.		54,300		2,878,986
The Gap, Inc.		16,100		313,145
The TJX Companies, Inc.		11,700		424,008
Urban Outfitters, Inc. *		2,600		92,612
Walgreen Company		193,400		7,045,562
Wal-Mart Stores, Inc.		902,000		53,281,140
				92,799,603
Semiconductors - 0.30%
Cypress Semiconductor Corp. *		10,500		340,410
Intel Corp.		88,300		2,019,421
Texas Instruments, Inc.		14,400		352,944
				2,712,775
Software - 7.30%
BMC Software, Inc. *		2,600		84,656
Citrix Systems, Inc. *		29,800		902,046
Intuit, Inc. *		6,300		189,441
Microsoft Corp.		1,655,200		45,170,408
Oracle Corp. *		896,700		19,664,631
				66,011,182
Steel - 0.08%
Nucor Corp.		13,600		714,000
Telecommunications Equipment &
Services - 2.59%
QUALCOMM, Inc.		445,700		23,466,105
Telephone - 1.58%
AT&T, Inc.		191,605		6,129,444
CenturyTel, Inc.		4,100		158,383
Sprint Nextel Corp.		9,600		83,712
Verizon Communications, Inc.		226,500		7,954,680
				14,326,219
Tobacco - 2.49%
Altria Group, Inc.		406,900		8,557,107
Philip Morris International, Inc.		232,800		12,501,360
UST, Inc.		27,400		1,468,366
				22,526,833

 

The accompanying notes are an integral part of the financial statements.

346

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

U.S. Multi Sector Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Transportation - 0.19%
C.H. Robinson Worldwide, Inc.		33,300	$	1,735,263
Trucking & Freight - 0.41%
FedEx Corp.		2,500		207,050
United Parcel Service, Inc., Class B		54,600		3,500,952
				3,708,002
TOTAL COMMON STOCKS (Cost $855,467,108)			$	871,495,911
SHORT TERM INVESTMENTS - 0.04%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	346,637	$	346,637
TOTAL SHORT TERM INVESTMENTS (Cost $346,637)			$	346,637
REPURCHASE AGREEMENTS - 3.28%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $29,698,609 on 09/02/2008, collateralized by $29,840,000 Federal Farm Credit Bank, 5.375% due 03/11/2019 (valued at $30,287,600, including interest)	$	29,693,000	$	29,693,000
TOTAL REPURCHASE AGREEMENTS (Cost $29,693,000)			$	29,693,000
Total Investments (U.S. Multi Sector Fund) (Cost $885,506,745) - 99.67%			$	901,535,548
Other Assets in Excess of Liabilities - 0.33%				2,946,032
TOTAL NET ASSETS - 100.00%			$	904,481,580

 

Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 95.85%
Aerospace - 2.11%
Goodrich Corp.		10,670	$	546,838
Auto Parts - 2.87%
Autoliv, Inc.		13,500		518,265
O’Reilly Automotive, Inc. *		7,700		224,224
				742,489
Banking - 3.67%
Hudson City Bancorp, Inc.		14,359		264,780
Northern Trust Corp.		8,514		684,440
				949,220
Business Services - 6.82%
Perot Systems Corp., Class A *		53,810		957,818
Pitney Bowes, Inc.		23,620		806,623
				1,764,441
Chemicals - 3.60%
Valspar Corp.		39,380		931,731

 

Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Computers & Business Equipment - 3.42%
Diebold, Inc.		22,310	$	884,591
Cosmetics & Toiletries - 5.52%
Estee Lauder Companies, Inc., Class A		16,510		821,703
International Flavors & Fragrances, Inc.		15,109		607,533
				1,429,236
Crude Petroleum & Natural Gas - 2.54%
Hess Corp.		3,980		416,746
Newfield Exploration Company *		5,310		240,118
				656,864
Educational Services - 1.94%
Apollo Group, Inc., Class A *		7,874		501,416
Electrical Utilities - 6.13%
American Electric Power Company, Inc.		12,030		469,651
DPL, Inc.		13,440		333,581
Wisconsin Energy Corp.		16,770		784,333
				1,587,565
Electronics - 5.73%
Flextronics International, Ltd. *		80,531		718,336
Zebra Technologies Corp., Class A *		24,530		765,827
				1,484,163
Energy - 2.75%
NRG Energy, Inc. *		18,900		711,396
Financial Services - 8.59%
Capital One Financial Corp.		11,874		524,118
CapitalSource, Inc.		24,680		310,475
CIT Group, Inc.		56,575		583,288
Invesco, Ltd.		31,435		805,679
				2,223,560
Food & Beverages - 2.24%
ConAgra Foods, Inc.		27,230		579,182
Gas & Pipeline Utilities - 1.62%
El Paso Corp.		24,960		418,330
Healthcare Products - 2.96%
Beckman Coulter, Inc.		10,390		766,990
Healthcare Services - 3.84%
Brookdale Senior Living, Inc.		490		10,805
Healthsouth Corp. *		54,680		983,693
				994,498
Household Products - 2.85%
Newell Rubbermaid, Inc.		40,760		737,756
Insurance - 9.31%
ACE, Ltd. *		16,165		850,440
Aspen Insurance Holdings, Ltd.		19,267		522,136
Marsh & McLennan Companies, Inc.		32,499		1,037,692
				2,410,268
Manufacturing - 5.97%
Harley-Davidson, Inc.		13,401		533,092
Pentair, Inc.		27,550		1,012,462
				1,545,554

 

The accompanying notes are an integral part of the financial statements.

347

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)	��
Medical-Hospitals - 2.08%
Health Management Associates, Inc., Class A *		92,800	$	539,168
Office Furnishings & Supplies - 2.93%
Avery Dennison Corp.		15,700		757,368
Paper - 3.50%
Domtar Corp. *		158,680		906,063
Retail Trade - 2.86%
Macy’s, Inc.		29,100		605,862
Rite Aid Corp. *		111,360		134,746
				740,608
TOTAL COMMON STOCKS (Cost $24,637,299)			$	24,809,295
SHORT TERM INVESTMENTS - 3.87%
Federal Home Loan Bank Discount Notes
zero coupon due 09/02/2008	$	1,000,000	$	1,000,000
TOTAL SHORT TERM INVESTMENTS (Cost $1,000,000)			$	1,000,000
Total Investments (Value Fund) (Cost $25,637,299) - 99.72%			$	25,809,295
Other Assets in Excess of Liabilities - 0.28%				73,641
TOTAL NET ASSETS - 100.00%			$	25,882,936

 

Value & Restructuring Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 93.25%
Aerospace - 2.44%
Empresa Brasileira de Aeronautica SA, ADR		185,973	$	6,313,784
United Technologies Corp.		115,426		7,570,791
				13,884,575
Air Travel - 1.19%
Copa Holdings SA, Class A		138,085		5,272,085
Gol-Linhas Aereas Inteligentes SA (a)		168,636		1,500,861
				6,772,946
Auto Services - 0.45%
RSC Holdings, Inc. * (a)		250,764		2,547,762
Broadcasting - 0.55%
CBS Corp., Class B		193,430		3,129,697
Cable & Television - 0.49%
DISH Network Corp. *		98,695		2,784,186
Cellular Communications - 2.74%
America Movil SA de CV, Series L, ADR		303,179		15,577,337
Chemicals - 3.85%
Celanese Corp., Series A		255,085		9,836,077
Lanxess AG		119,222		4,584,274
PPG Industries, Inc.		118,560		7,452,682
				21,873,033
Coal - 7.39%
Alpha Natural Resources, Inc. *		200,726		19,891,946

 

Value & Restructuring Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Coal (continued)
CONSOL Energy, Inc.		245,956	$	16,653,681
Foundation Coal Holdings, Inc.		91,601		5,418,199
				41,963,826
Commercial Services - 0.79%
AerCap Holdings NV *		322,648		4,475,128
Computers & Business Equipment - 1.91%
International Business Machines Corp.		88,945		10,827,275
Cosmetics & Toiletries - 1.48%
Avon Products, Inc.		195,865		8,388,898
Crude Petroleum & Natural Gas - 4.77%
Devon Energy Corp.		135,823		13,860,737
Noble Energy, Inc.		117,828		8,451,802
W&T Offshore, Inc.		135,578		4,766,923
				27,079,462
Electrical Utilities - 1.32%
Enel SpA		312,602		2,870,238
Entergy Corp.		45,002		4,652,757
				7,522,995
Energy - 0.43%
Rosetta Resources, Inc. * (h)		85,342		1,984,201
Rosetta Resources, Inc. *		20,008		465,186
				2,449,387
Financial Services - 7.15%
Apollo Investment Corp. (a)		208,950		3,698,415
Capital One Financial Corp.		55,049		2,429,863
CIT Group, Inc.		167,263		1,724,481
Invesco, Ltd.		333,815		8,555,678
JP Morgan Chase & Company		164,895		6,346,809
Lehman Brothers Holdings, Inc.		152,011		2,445,857
Morgan Stanley		198,730		8,114,146
PNC Financial Services Group, Inc.		101,449		7,299,256
				40,614,505
Food & Beverages - 0.91%
Dean Foods Company *		201,277		5,066,142
Vintage Wine Trust, Inc. (h)		88,261		88,261
				5,154,403
Furniture & Fixtures - 0.95%
Leggett & Platt, Inc.		242,196		5,403,393
Gas & Pipeline Utilities - 1.05%
El Paso Corp.		356,014		5,966,795
Healthcare Products - 1.32%
Baxter International, Inc.		110,993		7,520,886
Holdings Companies/Conglomerates - 0.78%
Loews Corp.		102,040		4,431,597
Homebuilders - 0.48%
Centex Corp.		168,936		2,740,142
Household Appliances - 1.88%
Black & Decker Corp.		168,718		10,671,413
Household Products - 0.76%
Newell Rubbermaid, Inc.		237,640		4,301,284

 

The accompanying notes are an integral part of the financial statements.

348

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Value & Restructuring Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery - 2.00%
AGCO Corp. *		184,649	$	11,379,918
Industrials - 0.70%
Aecom Technology Corp. *		124,852		3,990,270
Insurance - 4.29%
ACE, Ltd. *		206,903		10,885,167
Castlepoint Holdings, Ltd. * (h)		72,452		820,157
Castlepoint Holdings, Ltd.		66,253		749,984
Genworth Financial, Inc., Class A		193,171		3,100,394
MetLife, Inc.		144,568		7,835,586
Primus Guaranty, Ltd. *		197,730		988,650
				24,379,938
International Oil - 8.85%
Anadarko Petroleum Corp.		133,020		8,211,324
ConocoPhillips		163,813		13,516,211
Murphy Oil Corp.		81,285		6,383,311
Petroleo Brasileiro SA, ADR		420,001		22,150,853
				50,261,699
Manufacturing - 3.58%
Eaton Corp.		96,417		7,055,796
Rockwell Automation, Inc.		122,361		5,776,663
Tyco International, Ltd.		174,760		7,493,709
				20,326,168
Metal & Metal Products - 3.23%
Companhia Vale Do Rio Doce, ADR *		210,951		5,600,749
Southern Copper Corp.		323,523		8,259,542
Sterlite Industries India, Ltd.		316,735		4,503,972
				18,364,263
Mining - 2.39%
Freeport-McMoRan Copper & Gold, Inc., Class B		99,839		8,917,619
Grupo Mexico SA		2,814,639		4,688,898
				13,606,517
Paper - 0.31%
Smurfit-Stone Container Corp. *		353,627		1,785,816
Petroleum Services - 3.06%
Hercules Offshore, Inc. * (a)		238,744		5,269,080
PetroHawk Energy Corp. *		257,560		8,914,152
Petroplus Holdings AG *		70,362		3,220,691
				17,403,923
Pharmaceuticals - 1.95%
AmerisourceBergen Corp.		135,643		5,562,719
Bristol-Myers Squibb Company		257,661		5,498,486
				11,061,205
Railroads & Equipment - 2.98%
Union Pacific Corp.		201,534		16,908,703
Real Estate - 0.95%
DiamondRock Hospitality Company, REIT		311,450		2,868,454
Host Hotels & Resorts, Inc., REIT		164,102		2,346,659
JHSF Participacoes SA		44,334		182,232
				5,397,345

 

Value & Restructuring Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade - 2.09%
J.C. Penney Company, Inc.		62,469	$	2,434,417
The TJX Companies, Inc.		207,493		7,519,546
United Rentals, Inc. *		118,300		1,915,277
				11,869,240
Steel - 1.40%
Schnitzer Steel Industries, Inc.		116,650		7,980,026
Telecommunications Equipment & Services - 2.52%
CommScope, Inc. *		143,840		7,043,845
DataPath, Inc. * (h)		80,000		120,000
Nokia Oyj, SADR		284,570		7,162,627
				14,326,472
Telephone - 3.34%
Harris Corp.		291,226		15,248,593
Windstream Corp.		302,144		3,752,629
				19,001,222
Tobacco - 3.01%
Lorillard, Inc.		236,341		17,073,274
Transportation - 0.29%
Arlington Tankers, Ltd.		59,982		1,106,068
Omega Navigation Enterprises, Inc.		33,428		526,825
				1,632,893
Trucking & Freight - 1.23%
Ryder Systems, Inc.		108,525		7,002,033
TOTAL COMMON STOCKS (Cost $469,118,196)			$	529,831,850
PREFERRED STOCKS - 1.72%
Chemicals - 0.30%
Celanese Corp., 4.25%		35,152		1,725,612
Financial Services - 0.50%
CIT Group, Inc., 7.75%		244,843		2,825,488
Insurance - 0.92%
American International Group, Inc., 8.50%		105,000		5,234,250
TOTAL PREFERRED STOCKS (Cost $12,744,725)			$	9,785,350
SHORT TERM INVESTMENTS - 2.32%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	13,202,930	$	13,202,930
TOTAL SHORT TERM INVESTMENTS (Cost $13,202,930)			$	13,202,930

 

The accompanying notes are an integral part of the financial statements.

349

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Value & Restructuring Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 5.36%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $30,466,754 on 09/02/2008, collateralized by $30,915,000 Federal Home Loan Mortgage Corp., 4.23% due 05/07/2013 (valued at $31,073,903, including interest)	$	30,461,000	$	30,461,000
TOTAL REPURCHASE AGREEMENTS (Cost $30,461,000)			$	30,461,000
Total Investments (Value & Restructuring Fund) (Cost $525,526,851) - 102.65%			$	583,281,130
Liabilities in Excess of Other Assets - (2.65)%				(15,084,465	)
TOTAL NET ASSETS - 100.00%			$	568,196,665

 

Vista Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.22%
Agriculture - 3.55%
Monsanto Company		28,000	$	3,199,000
The Mosaic Company		7,900		843,246
				4,042,246
Apparel & Textiles - 1.56%
Jones Apparel Group, Inc.		30,200		599,772
Phillips-Van Heusen Corp.		15,800		601,348
Warnaco Group, Inc. *		11,200		577,584
				1,778,704
Banking - 1.01%
Hudson City Bancorp, Inc.		62,300		1,148,812
Biotechnology - 1.20%
Cephalon, Inc. *		7,400		566,988
Charles River Laboratories International, Inc. *		12,100		793,881
				1,360,869
Building Materials & Construction - 1.14%
Foster Wheeler, Ltd. *		26,056		1,294,723
Business Services - 0.79%
FTI Consulting, Inc. *		12,200		895,480
Cellular Communications - 2.66%
NII Holdings, Inc. *		57,600		3,025,152
Chemicals - 4.02%
FMC Corp.		8,100		595,674
Intrepid Potash, Inc. *		24,102		1,141,471
Syngenta AG		10,581		2,838,981
				4,576,126
Coal - 2.45%
Alpha Natural Resources, Inc. *		22,700		2,249,570
Foundation Coal Holdings, Inc.		9,100		538,265
				2,787,835

 

Vista Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Colleges & Universities - 0.60%
Corinthian Colleges, Inc. *		51,300	$	680,751
Computers & Business Equipment - 0.51%
Apple, Inc. *		3,400		576,402
Construction & Mining Equipment - 2.01%
Bucyrus International, Inc., Class A		32,800		2,291,080
Containers & Glass - 0.81%
Owens-Illinois, Inc. *		20,700		923,220
Crude Petroleum & Natural Gas - 1.52%
Patterson-UTI Energy, Inc.		19,800		562,716
Southwestern Energy Company *		15,700		602,409
Whiting Petroleum Corp. *		5,900		567,816
				1,732,941
Domestic Oil - 0.48%
Continental Resources, Inc. *		10,900		546,853
Drugs & Health Care - 2.46%
CSL, Ltd.		17,200		600,285
Parexel International Corp. *		30,400		965,808
Perrigo Company		35,200		1,231,648
				2,797,741
Educational Services - 2.72%
DeVry, Inc.		11,300		582,854
ITT Educational Services, Inc. *		19,300		1,715,963
Strayer Education, Inc.		3,787		794,664
				3,093,481
Electrical Equipment - 1.11%
Vestas Wind Systems AS *		9,300		1,261,948
Electrical Utilities - 2.68%
Quanta Services, Inc. *		95,375		3,046,277
Electronics - 3.36%
Amphenol Corp., Class A		14,800		703,296
Thermo Fisher Scientific, Inc. *		51,500		3,118,840
				3,822,136
Energy - 3.57%
Energy Conversion Devices, Inc. *		14,700		1,104,999
First Solar, Inc. *		5,400		1,493,910
JA Solar Holdings Company, Ltd. *		34,400		613,352
LDK Solar Company, Ltd., ADR *		16,700		856,042
				4,068,303
Financial Services - 2.83%
MasterCard, Inc., Class A		11,000		2,668,050
Raymond James Financial, Inc.		18,000		554,940
				3,222,990
Food & Beverages - 0.74%
H.J. Heinz Company		16,800		845,376
Healthcare Products - 3.05%
Covidien, Ltd.		20,600		1,113,842
Edwards Lifesciences Corp. *		7,035		416,542
St. Jude Medical, Inc. *		11,700		536,211
Varian Medical Systems, Inc. *		22,300		1,408,468
				3,475,063

 

The accompanying notes are an integral part of the financial statements.

350

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Vista Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Services - 5.40%
Express Scripts, Inc. *		31,100	$	2,283,051
Medco Health Solutions, Inc. *		52,100		2,440,885
Omnicare, Inc.		44,000		1,419,000
				6,142,936
Hotels & Restaurants - 1.00%
Panera Bread Company, Class A * (a)		21,200		1,139,288
Industrial Machinery - 4.43%
Dresser-Rand Group, Inc. *		23,340		946,670
Flowserve Corp.		31,000		4,095,720
				5,042,390
Industrials - 0.74%
Shaw Group, Inc. *		17,100		847,134
International Oil - 2.29%
Weatherford International, Ltd. *		67,500		2,604,150
Internet Content - 0.75%
Sohu.com, Inc. *		11,400		858,420
Internet Service Provider - 0.49%
Netease.Com, Inc., ADR *		21,500		561,365
Internet Software - 1.24%
McAfee, Inc. *		21,600		854,496
Salesforce.com, Inc. *		9,900		554,598
				1,409,094
Investment Companies - 0.49%
Midcap SPDR Trust, Series 1		3,800		563,160
Liquor - 1.44%
Central European Distribution Corp. *		28,333		1,634,531
Metal & Metal Products - 1.53%
Crown Holdings, Inc. *		62,700		1,739,298
Mining - 1.81%
Cleveland-Cliffs, Inc.		20,300		2,054,766
Petroleum Services - 4.40%
Helmerich & Payne, Inc.		17,700		1,011,024
PetroHawk Energy Corp. *		68,714		2,378,192
Smith International, Inc.		23,300		1,624,010
				5,013,226
Pharmaceuticals - 1.41%
Alexion Pharmaceuticals, Inc. *		31,000		1,397,480
Onyx Pharmaceuticals, Inc. *		5,100		208,437
				1,605,917
Railroads & Equipment - 4.12%
CSX Corp.		18,700		1,209,516
Kansas City Southern *		22,400		1,152,032
Norfolk Southern Corp.		12,000		882,360
Union Pacific Corp.		17,200		1,443,080
				4,686,988
Retail Trade - 8.70%
Big Lots, Inc. *		36,000		1,064,520
Children’s Place Retail Stores, Inc. *		35,100		1,472,445
Dollar Tree, Inc. *		59,100		2,267,076
GameStop Corp., Class A *		19,000		833,530

 

Vista Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade (continued)
Ross Stores, Inc.		50,394	$	2,026,343
The TJX Companies, Inc.		33,000		1,195,920
Urban Outfitters, Inc. *		29,100		1,036,542
				9,896,376
Semiconductors - 6.00%
Altera Corp.		67,900		1,537,256
American Superconductor Corp. * (a)		16,288		400,196
Broadcom Corp., Class A *		43,400		1,044,204
Marvell Technology Group, Ltd. *		56,700		800,037
MEMC Electronic Materials, Inc. *		12,300		603,807
Microsemi Corp. *		43,043		1,183,683
PMC-Sierra, Inc. *		139,700		1,257,300
				6,826,483
Software - 1.75%
Activision Blizzard, Inc. *		60,600		1,988,892
Steel - 0.50%
United States Steel Corp.		4,300		572,201
Telecommunications Equipment &
Services - 2.91%
SBA Communications Corp. *		94,888		3,314,438
Trucking & Freight - 0.99%
J.B. Hunt Transport Services, Inc.		15,900		579,555
Old Dominion Freight Lines, Inc. *		8,000		266,160
Werner Enterprises, Inc.		12,200		278,282
				1,123,997
TOTAL COMMON STOCKS (Cost $93,474,566)			$	112,919,559
SHORT TERM INVESTMENTS - 1.32%
John Hancock Cash Investment Trust, 2.5657% (c)(i)	$	1,507,413	$	1,507,413
TOTAL SHORT TERM INVESTMENTS (Cost $1,507,413)			$	1,507,413
REPURCHASE AGREEMENTS - 2.69%
Repurchase Agreement with State Street Corp. dated 08/29/2008 at 1.70% to be repurchased at $3,065,579 on 09/02/2008, collateralized by $3,170,000 Federal Home Loan Bank, 5.70% due 04/03/2028 (valued at $3,130,375, including interest)	$	3,065,000	$	3,065,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,065,000)			$	3,065,000
Total Investments (Vista Fund) (Cost $98,046,979) - 103.23%			$	117,491,972
Liabilities in Excess of Other Assets - (3.23)%				(3,680,270	)
TOTAL NET ASSETS - 100.00%			$	113,811,702

 

Footnotes

Percentages are stated as a percent of net assets.

The accompanying notes are an integral part of the financial statements.

351

John Hancock Funds II

Portfolio of Investments — August 31, 2008
(showing percentage of total net assets)

Key to Currency Abbreviations

ARS–   Argentine Peso

AUD–   Australian Dollar

BRL–   Brazilian Real

CAD–   Canadian Dollar

CHF–   Swiss Franc

COP–   Colombian Peso

CZK–   Czech Koruna

DKK–   Danish Krone

EGP–   Egyptian Pound

EUR–   European Currency

GBP–   British Pound

GRD–   Greek Drachma

HKD–   Hong Kong Dollar

HUF–   Hungarian Forint

IDR–   Indonesian Rupiah

ILS–   Israeli Shekel

INR–   Indian Rupee

JPY–   Japanese Yen

KRW–   South Korean Won

MXN–   Mexican Peso

MYR–   Malaysian Ringgit

NGN–   Nigerian Naira

NZD–   New Zealand Dollar

NOK–   Norwegian Krone

PHP–   Philippines Peso

PLN–   Polish Zloty

RUB–   Russian Ruble

SEK–   Swedish Krona

SGD–   Singapore Dollar

THB–   Thai Baht

TRY–   Turkish Lira

TWD–   Taiwan Dollar

USD–   US Dollar

UYU–   Uruguayan Peso

ZAR–   South African Rand

Key to Security Abbreviations and Legend

ADR–   American Depositary Receipts

ADS–   American Depositary Shares

BKNT–   Bank Note

CDO–   Collateralized Debt Obligation

ESOP–   Employee Stock Ownership Program

EMTN–   European Medium Term Note

ETF–   Exchange Traded Fund

EWCO–   European Written Call Option

GDR–   Global Depositary Receipts

GMTN–   Global Medium Term Note

GTD–   Guaranteed

IO–   Interest Only (Carries notional principal amount)

MTN–   Medium Term Note

NIM–   Net Interest Margin

NVDR–   Non Voting Depositary Receipts

OTC–   Over The Counter

PIK–   Paid In Kind

PO–   Principal Only

REIT–   Real Estate Investment Trust

REMIC–   Real Estate Mortgage Investment Conduit

SBI–   Shares Beneficial Interest

SADR–   Sponsored American Depositary Receipts

SPDR–   Standard & Poor’s Depositary Receipts

TBA–   To Be Announced

TIPS–   Treasury Inflation Protected Security

ˆ   Non-Income Producing, issuer is in bankruptcy and is in default of interest payments

*   Non-Income Producing

(a)   All or a portion of this security was out on loan

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

(c)   The investment is an affiliate of the fund, the adviser and/or the subadviser.

(d)   Principal amount of security is adjusted for inflation.

(e)   Security Fair Valued on August 31, 2008

(f)   The underlying fund’s subadviser.

(g)   The subadviser is an affiliate of the adviser.

(h)   144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.

(i)   John Hancock Cash Investment Trust is managed by MFC Global Investment Management (U.S.), LLC. The rate shown is the seven-day effective yield at period end.

(j)   Security Purchased on a when-issued or delayed delivery basis.

(k)   Variable Rate Preferred

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

(m)   Credit Linked Note (CLN): A security purchased from a trust, and collateralized with AAA rated securities, allowing the issuer to transfer specific credit risk to investors.

**   Purchased on a forward commitment

****   At August 31, 2008, all or a portion of this security was segregated at broker to cover margin requirements for open futures contracts.

 

The accompanying notes are an integral part of the financial statements.

352

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Absolute Return			Active Bond				All Cap Core				All Cap Growth
Investments in unaffiliated issuers, at value	$	1,106,710			$	591,205,119			$	646,561,719			$	117,736,905
Investments in affiliated issuers, at value (Note 2)		4,390,934	1			—				4,599,396				—
Securities loaned, at value (Note 2)		—				—				4,509,212				—
Repurchase agreements, at value (Note 2)		—				16,832,000				59,421,000				4,803,000
Total investments, at value		5,497,644				608,037,119				715,091,327				122,539,905
Cash		62,665				71,625				908				—
Receivable for investments sold		—				2,266,071				5,568,803				—
Receivable for forward foreign currency exchange contracts (Note 2)		—				14,589				—				—
Receivable for fund shares sold		16,540				25,326				—				3,423
Dividends and interest receivable		954				6,074,136				1,357,050				114,215
Receivable for security lending income		—				—				2,119				1,269
Receivable due from adviser		274				—				—				549
Other assets		71				—				—				—
Total assets		5,578,148				616,488,866				722,020,207				122,659,361
Liabilities
Due to custodian		—				—				—				24,089
Payable for investments purchased		17,494				29,468,921				6,146,637				82,005
Payable for forward foreign currency exchange contracts (Note 2)		—				13,597				—				—
Payable upon return of securities loaned (Note 2)		—				—				4,599,396				—
Swap contracts, at value (Note 2)		—				21,214				—				—
Payable for futures variation margin		—				—				551,465				—
Payable to affiliates
Fund administration fees		417				10,434				9,805				2,520
Trustees’ fees		—				—				37				15
Other payables and accrued expenses		31,442				112,034				57,908				45,588
Total liabilities		49,353				29,626,200				11,365,248				154,217
Net assets
Capital paid-in	$	5,614,015			$	616,874,026			$	789,157,385			$	116,941,315
Undistributed net investment income (loss)		50,239				4,163,787				5,142,079				40,934
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written, foreign currency transactions and swap agreements		14,389				919,011				(68,713,909	)			732,573
Net unrealized appreciation (depreciation) on investments, futures, options written, swap agreements and translation of assets and liabilities in foreign currencies		(149,848	)			(35,094,158	)			(14,930,596	)			4,790,322
Net assets	$	5,528,795			$	586,862,666			$	710,654,959			$	122,505,144
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	1,092,192			$	643,184,576			$	724,675,974			$	117,747,887
Investments in affiliated issuers, at cost	$	4,555,300				—			$	4,599,396				—
Net unamortized upfront payment on swaps		—				($72,401	)			—				—

 

1 See Note 8.

 

353

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Net asset value per share	Absolute Return		Active Bond			All Cap Core			All Cap Growth
The Funds 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	$	1,364,028			—			—			—
Shares outstanding		137,835			—			—			—
Net asset value and redemption price per share	$	9.90			—			—			—
Class B1
Net assets	$	1,343,364			—			—			—
Shares outstanding		136,668			—			—			—
Net asset value, offering price and redemption price per share	$	9.83			—			—			—
Class C1
Net assets	$	1,343,366			—			—			—
Shares outstanding		136,668			—			—			—
Net asset value, offering price and redemption price per share	$	9.83			—			—			—
Class 1
Net assets	$	1,478,037		$	33,312,758			—		$	27,803,426
Shares outstanding		148,998			3,652,048			—			1,789,034
Net asset value, offering price and redemption price per share	$	9.92		$	9.12			—		$	15.54
Class NAV
Net assets		—		$	553,549,908		$	710,654,959		$	94,701,718
Shares outstanding		—			60,723,557			77,060,940			6,082,455
Net asset value, offering price and redemption price per share		—		$	9.12		$	9.22		$	15.57
Maximum Public Offering Price Per Share:
Class A (net asset value per share ÷ 95%)2	$	10.42			—			—			—

 

1	Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.
2	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

 

354

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	All Cap Value		American Diversified Growth & Income				American Fundamental Holdings				American Global Diversification
Investments in unaffiliated issuers, at value	$	92,652,159		$	1,002,335			$	1,004,417			$	977,399
Repurchase agreements, at value (Note 2)		1,548,000			—				—				—
Total investments, at value		94,200,159			1,002,335				1,004,417				977,399
Cash		183			—				—				—
Receivable for investments sold		136,608			—				—				—
Receivable for fund shares sold		65,483			—				—				—
Dividends and interest receivable		211,087			669				774				649
Receivable for security lending income		1,269			—				—				—
Receivable due from adviser		—			13,743				13,743				13,743
Total assets		94,614,789			1,016,747	��			1,018,934				991,791
Liabilities
Payable for investments purchased		185,697			13,738				9,312				13,738
Payable for fund shares repurchased		—			—				4,425				—
Payable to affiliates
Fund administration fees		1,841			29				29				29
Trustees’ fees		83			—				—				—
Other payables and accrued expenses		39,773			25,451				25,452				25,451
Total liabilities		227,394			39,218				39,218				39,218
Net assets
Capital paid-in	$	87,685,059		$	1,002,432			$	1,001,749			$	1,001,719
Undistributed net investment income (loss)		540,843			2,443				3,740				3,214
Accumulated undistributed net realized gain (loss) on investments		2,282,094			(36	)			(40	)			(51	)
Net unrealized appreciation (depreciation) on investments		3,879,399			(27,310	)			(25,733	)			(52,309	)
Net assets	$	94,387,395		$	977,529			$	979,716			$	952,573
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	90,320,760		$	1,029,645			$	1,030,150			$	1,029,708
Net asset value per share
The Funds 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 1
Net assets	$	25,364,711		$	977,529			$	979,716			$	952,573
Shares outstanding		2,266,501			100,261				100,186				100,187
Net asset value, offering price and redemption price per share	$	11.19		$	9.75			$	9.78			$	9.51
Class NAV
Net assets	$	69,022,684			—				—				—
Shares outstanding		6,194,253			—				—				—
Net asset value, offering price and redemption price per share	$	11.14			—				—				—

 

355

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Blue Chip Growth			Capital Appreciation				Core Bond				Core Equity
Investments in unaffiliated issuers, at value	$	2,034,648,671			$	1,008,517,847			$	309,280,622			$	692,646,223
Investments in affiliated issuers, at value (Note 2)		9,422,022				—				—				—
Securities loaned, at value (Note 2)		9,237,276				—				—				—
Repurchase agreements, at value (Note 2)		2,043,000				24,131,000				959,000				22,061,000
Total investments, at value		2,055,350,969				1,032,648,847				310,239,622				714,707,223
Cash		464				30				108				167
Receivable for investments sold		10,165,345				1,231,914				52,060,383				587,686
Receivable for fund shares sold		290,020				405,373				28,010				4,846
Dividends and interest receivable		1,681,305				689,068				1,936,549				384,228
Receivable for security lending income		33,881				76,231				—				—
Total assets		2,067,521,984				1,035,051,463				364,264,672				715,684,150
Liabilities
Payable for investments purchased		16,085,658				350,577				92,310,076				2,007,579
Payable for fund shares repurchased		178,702				27,342				—				—
Payable upon return of securities loaned (Note 2)		9,422,022				—				—				—
Payable to affiliates
Fund administration fees		34,446				15,864				5,035				16,455
Trustees’ fees		172				61				30				104
Other payables and accrued expenses		109,514				70,087				101,358				75,661
Total liabilities		25,830,514				463,931				92,416,499				2,099,799
Net assets
Capital paid-in	$	1,902,927,580			$	1,047,852,363			$	270,036,010			$	968,023,065
Undistributed net investment income (loss)		2,720,774				3,036,422				2,245,056				4,555,251
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(89,569,408	)			(120,719,748	)			791,844				(107,182,795	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		225,612,524				104,418,495				(1,224,737	)			(151,811,170	)
Net assets	$	2,041,691,470			$	1,034,587,532			$	271,848,173			$	713,584,351
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	1,820,310,617			$	928,230,352			$	311,464,359			$	866,518,393
Investments in affiliated issuers, at cost	$	9,422,022				—				—				—
Net asset value per share
The Funds 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 1
Net assets	$	191,852,490			$	61,105,481			$	4,495,231			$	8,484,939
Shares outstanding		10,060,467				6,023,341				357,123				792,221
Net asset value, offering price and redemption price per share	$	19.07			$	10.14			$	12.59			$	10.71
Class NAV
Net assets	$	1,849,838,980			$	973,482,051			$	267,352,942			$	705,099,412
Shares outstanding		97,043,883				95,854,451				21,257,270				65,727,076
Net asset value, offering price and redemption price per share	$	19.06			$	10.16			$	12.58			$	10.73

 

356

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Emerging Growth			Emerging Markets Value				Emerging Small Company				Equity-Income
Investments in unaffiliated issuers, at value	$	103,450,407			$	568,930,088			$	70,477,520			$	899,502,558
Investments in affiliated issuers, at value (Note 2)		26,914,113				—				2,434,244				34,215,217
Securities loaned, at value (Note 2)		26,386,385				—				2,386,514				33,544,330
Repurchase agreements, at value (Note 2)		—				15,403,000				2,721,000				5,094,000
Total investments, at value		156,750,905				584,333,088				78,019,278				972,356,105
Cash		9,995				6,097				276				441
Foreign currency, at value		—				4,294,780				—				138,488
Receivable for investments sold		1,013,102				7,583				1,536,564				862,495
Receivable for fund shares sold		—				71,762				9,367				—
Dividends and interest receivable		27,387				2,116,904				30,213				3,484,423
Receivable for security lending income		215,983				—				8,469				11,011
Receivable due from adviser		—				—				5,668				95
Total assets		158,017,372				590,830,214				79,609,835				976,853,058
Liabilities
Payable for investments purchased		—				13,389,441				1,856,599				1,923,870
Payable for fund shares repurchased		83,796				1,180				163,719				3,969,875
Payable upon return of securities loaned (Note 2)		26,914,113				—				2,434,244				34,215,217
Options written, at value (Note 2)		950				—				—				—
Payable to affiliates
Fund administration fees		4,092				8,335				1,000				16,881
Trustees’ fees		91				39				—				110
Other payables and accrued expenses		72,042				204,660				35,738				69,305
Total liabilities		27,075,084				13,603,655				4,491,300				40,195,258
Net assets
Capital paid-in	$	164,340,955			$	642,446,450			$	79,571,133			$	960,888,833
Undistributed net investment income (loss)		2,093,315				8,982,960				—				14,331,149
Accumulated undistributed net realized gain (loss) on investments, options written and foreign currency transactions		(26,778,279	)			9,621,882				(9,251,520	)			62,817,028
Net unrealized appreciation (depreciation) on investments, options written and translation of assets and liabilities in foreign currencies		(8,713,703	)			(83,824,733	)			4,798,922				(101,379,210	)
Net assets	$	130,942,288			$	577,226,559			$	75,118,535			$	936,657,800
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	138,554,035			$	668,128,059			$	70,785,994			$	1,039,513,666
Investments in affiliated issuers, at cost	$	26,914,113				—			$	2,434,244			$	34,215,217
Foreign currency, at cost		—			$	4,302,325				—			$	138,979
Premiums received on written options	$	4,490				—				—				—
Net asset value per share
The Funds 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 1
Net assets	$	95,081,597				—			$	37,028,612			$	162,915,947
Shares outstanding		6,872,037				—				1,400,917				10,114,966
Net asset value, offering price and redemption price per share	$	13.84				—			$	26.43			$	16.11
Class NAV
Net assets	$	35,860,691			$	577,226,559			$	38,089,923			$	773,741,853
Shares outstanding		2,590,825				60,973,743				1,439,577				48,071,612
Net asset value, offering price and redemption price per share	$	13.84			$	9.47			$	26.46			$	16.10

 

357

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Fundamental Value			Global Bond				Global Real Estate				High Income
Investments in unaffiliated issuers, at value	$	1,564,140,103			$	985,462,054			$	573,663,291			$	455,545,611
Investments in affiliated issuers, at value (Note 2)		44,703,945				—				15,269,623				—
Securities loaned, at value (Note 2)		43,827,397				—				14,604,001				—
Repurchase agreements, at value (Note 2)		—				9,233,000				3,863,000				—
Total investments, at value		1,652,671,445				994,695,054				607,399,915				455,545,611
Cash		28,508				263				754				507,349
Foreign currency, at value		6,091				5,973,498				17,946,285				—
Cash collateral at broker for futures contracts		—				5,385,400				—				—
Receivable for investments sold		—				274,353,402				3,165,055				3,341,547
Receivable for forward foreign currency exchange contracts (Note 2)		—				1,154,765				1,708,687				403,018
Receivable for fund shares sold		37,129				18,817				—				118,651
Dividends and interest receivable		2,127,379				7,820,979				2,340,623				10,849,107
Receivable for security lending income		4,234				—				35,366				—
Swap contracts, at value (Note 2)		—				12,820,488				—				—
Total assets		1,654,874,786				1,302,222,666				632,596,685				470,765,283
Liabilities
Due to custodian		—				—				—				220,175
Payable for investments purchased		—				516,888,623				8,847,525				22,830,740
Payable for forward foreign currency exchange contracts (Note 2)		—				9,208,291				385,088				172,720
Payable for fund shares repurchased		3,101,349				115,991				396,736				—
Payable upon return of securities loaned (Note 2)		44,703,945				—				15,269,623				—
Options written, at value (Note 2)		—				7,523,344				—				—
Investments sold short, at value (Note 2)		—				165,490,084				—				—
Payable for interest on securities sold short		—				674,293				—				—
Swap contracts, at value (Note 2)		—				18,385,235				—				—
Payable for futures variation margin		—				221,796				—				—
Payable to affiliates
Fund administration fees		19,199				16,617				7,213				6,726
Trustees’ fees		34				125				32				37
Other payables and accrued expenses		118,136				228,934				169,702				63,456
Total liabilities		47,942,663				718,753,333				25,075,919				23,293,854
Net assets
Capital paid-in	$	1,652,897,626			$	539,807,697			$	736,689,407			$	547,360,612
Undistributed net investment income (loss)		8,749,270				67,914,018				(10,064,073	)			10,300,286
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written, short sales, foreign currency transactions and swap agreements		(25,181,713	)			16,635,096				(61,700,667	)			(5,337,914	)
Net unrealized appreciation (depreciation) on investments, futures, options written, short sales, swap agreements and translation of assets and liabilities in foreign currencies		(29,533,060	)			(40,887,478	)			(57,403,901	)			(104,851,555	)
Net assets	$	1,606,932,123			$	583,469,333			$	607,520,766			$	447,471,429
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	1,637,499,367			$	1,025,938,904			$	650,712,840			$	560,631,312
Investments in affiliated issuers, at cost	$	44,703,945				—			$	15,269,623				—
Foreign currency, at cost	$	6,088			$	5,998,884			$	17,998,031				—
Proceeds received on short sales		—			$	164,606,469				—				—
Premiums received on written options		—			$	6,842,464				—				—
Net unamortized upfront payment on swaps		—				($2,447,336	)			—				—
Net asset value per share
The Funds 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 1
Net assets	$	74,224,409			$	74,198,868				—				—
Shares outstanding		4,830,263				4,931,082				—				—
Net asset value, offering price and redemption price per share	$	15.37			$	15.05				—				—
Class NAV
Net assets	$	1,532,707,714			$	509,270,465			$	607,520,766			$	447,471,429
Shares outstanding		99,880,730				33,901,024				74,504,354				56,053,181
Net asset value, offering price and redemption price per share	$	15.35			$	15.02			$	8.15			$	7.98

 

358

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	High Yield			Index 500				International Equity Index				International Opportunities
Investments in unaffiliated issuers, at value	$	1,460,300,895			$	955,088,584			$	472,343,247			$	738,597,346
Investments in affiliated issuers, at value (Note 2)		8,953,533				—				1,871,120				29,882,813
Securities loaned, at value (Note 2)		8,777,973				—				1,795,890				28,687,761
Repurchase agreements, at value (Note 2)		45,000,000				—				—				110,319,000
Total investments, at value		1,523,032,401				955,088,584				476,010,257				907,486,920
Cash		265,097				5,419				—				129
Foreign currency, at value		3,613,110				—				15,912,838				6,356,269
Cash collateral at broker for futures contracts		—				3,440,000				—				—
Receivable for investments sold		2,671,059				—				—				5,818,121
Receivable for fund shares sold		22,133				353,777				20,838				24,158
Dividends and interest receivable		36,229,939				2,082,357				1,172,834				681,891
Receivable for security lending income		184,167				—				8,974				10,616
Receivable for futures variation margin		—				—				2,760,214				—
Receivable due from adviser		—				—				4,778				1,687
Total assets		1,566,017,906				960,970,137				495,890,733				920,379,791
Liabilities
Capital gains withholding tax		—				—				4,189				—
Payable for investments purchased		2,530,518				16,248				159,045				14,130,827
Payable for forward foreign currency exchange contracts (Note 2)		59,536				—				279,773				—
Payable for fund shares repurchased		44,586				—				—				6,847
Payable upon return of securities loaned (Note 2)		8,953,533				—				1,871,120				29,882,813
Payable for futures variation margin		—				309,971				—				—
Payable to affiliates
Fund administration fees		28,321				4,835				8,564				14,138
Trustees’ fees		193				—				47				70
Investment management fees		—				290				—				—
Other payables and accrued expenses		139,049				70,538				42,993				239,461
Total liabilities		11,755,736				401,882				2,365,731				44,274,156
Net assets
Capital paid-in	$	1,772,154,880			$	1,042,304,391			$	485,630,540			$	886,593,439
Undistributed net investment income (loss)		28,189,658				8,294,366				7,049,015				8,030,794
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written and foreign currency transactions		(54,817,158	)			(3,988,486	)			(743,496	)			(41,403,419	)
Net unrealized appreciation (depreciation) on investments, futures and translation of assets and liabilities in foreign currencies		(191,265,210	)			(86,042,016	)			1,588,943	1			22,884,821
Net assets	$	1,554,262,170			$	960,568,255			$	493,525,002			$	876,105,635
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	1,705,473,336			$	1,041,347,725			$	471,614,122			$	854,656,001
Investments in affiliated issuers, at cost	$	8,953,533				—			$	1,871,120			$	29,882,813
Foreign currency, at cost	$	3,417,421				—			$	16,131,808			$	6,410,007
Net asset value per share
The Funds 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 1
Net assets	$	43,254,914				—				—			$	32,235,729
Shares outstanding		4,908,915				—				—				2,126,697
Net asset value, offering price and redemption price per share	$	8.81				—				—			$	15.16
Class NAV
Net assets	$	1,511,007,256			$	960,568,255			$	493,525,002			$	843,869,906
Shares outstanding		172,358,032				101,422,849				26,640,444				55,542,067
Net asset value, offering price and redemption price per share	$	8.77			$	9.47			$	18.53			$	15.19

 

1 Net of deferred India foreign withholding taxes of $4,189.

 

359

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	International Small Cap			International Small Company				International Value				Investment Quality Bond
Investments in unaffiliated issuers, at value	$	321,374,716			$	397,968,978			$	1,390,829,254			$	182,460,216
Investments in affiliated issuers, at value (Note 2)		6,303,048				4,015,816				22,754,432				—
Securities loaned, at value (Note 2)		6,002,903				3,826,118				21,670,888				—
Repurchase agreements, at value (Note 2)		—				4,109,000				—				18,000,000
Total investments, at value		333,680,667				409,919,912				1,435,254,574				200,460,216
Cash		32,679				356				79,722				96,962
Foreign currency, at value		12,638,402				1,552,035				8,980,644				84
Receivable for investments sold		1,198,561				252,262				—				—
Receivable for forward foreign currency exchange contracts (Note 2)		—				—				—				390,151
Receivable for fund shares sold		102,103				—				43,200				39,459
Dividends and interest receivable		1,314,625				694,530				5,071,507				2,047,360
Swap contracts, at value (Note 2)		—				—				—				—
Unrealized appreciation on forward foreign bond contracts (Note 2)		—				—				—				214,720
Receivable due from adviser		—				—				2,307				—
Total assets		348,967,037				412,419,095				1,449,431,954				203,248,952
Liabilities
Payable for investments purchased		472,714				3,763,852				251,629				375,257
Payable for forward foreign currency exchange contracts (Note 2)		—				—				—				161,597
Payable for fund shares repurchased		—				42,177				496,850				—
Payable upon return of securities loaned (Note 2)		6,303,048				4,015,816				22,754,432				—
Swap contracts, at value (Note 2)		—				—				—				3,597
Unrealized depreciation on forward foreign bond contracts (Note 2)		—				—				—				149,342
Payable for futures variation margin		—				—				—				3,750
Payable to affiliates
Fund administration fees		8,705				4,085				28,932				3,072
Trustees’ fees		68				—				189				17
Other payables and accrued expenses		213,980				159,452				467,927				74,137
Total liabilities		6,998,515				7,985,382				23,999,959				770,769
Net assets
Capital paid-in	$	355,596,278			$	464,334,230			$	1,522,051,222			$	205,586,697
Undistributed net investment income (loss)		3,343,840				3,525,164				38,789,188				2,073,231
Accumulated undistributed net realized gain (loss) on investments, futures contracts, foreign currency transactions and swap agreements		32,094,582				7,354,077				30,478,400				(1,960,441	)
Net unrealized appreciation (depreciation) on investments, futures, bond forward contracts, swap agreements and translation of assets and liabilities in foreign currencies		(49,066,178	)			(70,779,758	)			(165,886,815	)			(3,221,304	)
Net assets	$	341,968,522			$	404,433,713			$	1,425,431,995			$	202,478,183
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	376,161,101			$	476,657,941			$	1,577,871,093			$	203,945,618
Investments in affiliated issuers, at cost	$	6,303,048			$	4,015,816			$	22,754,432				—
Foreign currency, at cost	$	12,904,704			$	1,564,462			$	9,389,018			$	84
Net asset value per share
The Funds 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 1
Net assets	$	46,661,132				—			$	372,209,063			$	53,606,210
Shares outstanding		2,969,478				—				23,745,103				4,614,122
Net asset value, offering price and redemption price per share	$	15.71				—			$	15.68			$	11.62
Class NAV
Net assets	$	295,307,390			$	404,433,713			$	1,053,222,932			$	148,871,973
Shares outstanding		18,789,668				47,613,613				67,333,192				12,827,135
Net asset value, offering price and redemption price per share	$	15.72			$	8.49			$	15.64			$	11.61

 

360

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Large Cap			Large Cap Value				Mid Cap Index				Mid Cap Intersection
Investments in unaffiliated issuers, at value	$	385,620,734			$	727,005,427			$	319,572,961			$	236,823,666
Investments in affiliated issuers, at value (Note 2)		—				—				10,395,398				—
Securities loaned, at value (Note 2)		—				—				10,191,566				—
Repurchase agreements, at value (Note 2)		3,372,000				966,000				—				5,329,000
Total investments, at value		388,992,734				727,971,427				340,159,925				242,152,666
Cash		255				485				2,748				988
Cash collateral at broker for futures contracts		—				—				1,550,000				108,800
Receivable for fund shares sold		18,340				100,859				10,899				—
Dividends and interest receivable		902,442				1,923,680				337,962				174,448
Receivable for security lending income		1,269				5,080				3,388				—
Total assets		389,915,040				730,001,531				342,064,922				242,436,902
Liabilities
Payable for investments purchased		127,148				—				—				—
Payable upon return of securities loaned (Note 2)		—				—				10,395,398				—
Payable for futures variation margin		—				—				87,120				24,480
Payable to affiliates
Fund administration fees		7,378				9,284				7,012				6,389
Trustees’ fees		44				30				374				55
Investment management fees		—				—				2,160				—
Other payables and accrued expenses		44,879				64,090				53,738				38,882
Total liabilities		179,449				73,404				10,545,802				69,806
Net assets
Capital paid-in	$	423,568,405			$	768,278,654			$	340,466,221			$	292,735,443
Undistributed net investment income (loss)		3,378,128				5,196,212				2,040,126				100,165
Accumulated undistributed net realized gain (loss) on investments, futures contracts and foreign currency transactions		(10,032,743	)			(45,976,966	)			1,984,691				(50,565,487	)
Net unrealized appreciation (depreciation) on investments and futures		(27,178,199	)			2,430,227				(12,971,918	)			96,975
Net assets	$	389,735,591			$	729,928,127			$	331,519,120			$	242,367,096
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	416,170,933			$	725,541,200			$	342,999,043			$	242,069,113
Investments in affiliated issuers, at cost		—				—			$	10,395,398				—
Net asset value per share
The Funds 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 1
Net assets	$	26,270,801			$	108,671,148				—				—
Shares outstanding		1,918,282				4,942,415				—				—
Net asset value, offering price and redemption price per share	$	13.69			$	21.99				—				—
Class NAV
Net assets	$	363,464,790			$	621,256,979			$	331,519,120			$	242,367,096
Shares outstanding		26,530,998				28,197,057				18,045,155				28,312,467
Net asset value, offering price and redemption price per share	$	13.70			$	22.03			$	18.37			$	8.56

 

361

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Mid Cap Stock			Mid Cap Value				Mid Cap Value Equity				Natural Resources
Investments in unaffiliated issuers, at value	$	661,065,452			$	180,854,258			$	89,376,165			$	626,693,400
Investments in affiliated issuers, at value (Note 2)		15,511,884				9,605,482				2,258,091				19,246,496
Securities loaned, at value (Note 2)		15,207,729				9,417,139				2,213,815				18,819,581
Repurchase agreements, at value (Note 2)		49,900,000				7,980,000				—				23,100,000
Total investments, at value		741,685,065				207,856,879				93,848,071				687,859,477
Cash		3,408				20				50,716				70,745
Foreign currency, at value		24				—				—				627,951
Receivable for investments sold		696,827				920,579				—				—
Receivable for fund shares sold		11,932				5,724				7,024				85,276
Dividends and interest receivable		208,590				232,522				161,477				1,455,436
Receivable for security lending income		25,409				846				2,119				19,728
Total assets		742,631,255				209,016,570				94,069,407				690,118,613
Liabilities
Payable for investments purchased		—				—				1,176,361				—
Payable for fund shares repurchased		141,210				—				—				—
Payable upon return of securities loaned (Note 2)		15,511,884				9,605,482				2,258,091				19,246,496
Payable to affiliates
Fund administration fees		10,561				5,971				3,203				14,831
Trustees’ fees		43				48				—				154
Other payables and accrued expenses		76,802				43,744				54,487				98,433
Total liabilities		15,740,500				9,655,245				3,492,142				19,359,914
Net assets
Capital paid-in	$	725,443,772			$	234,998,088			$	91,983,670			$	468,222,072
Undistributed net investment income (loss)		(261	)			1,803,782				435,483				2,421,592
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(40,012,066	)			(19,282,962	)			(178,992	)			116,146,832
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		41,459,310				(18,157,583	)			(1,662,896	)			83,968,203
Net assets	$	726,890,755			$	199,361,325			$	90,577,265			$	670,758,699
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	684,713,311			$	216,408,980			$	93,252,919			$	584,642,338
Investments in affiliated issuers, at cost	$	15,511,884			$	9,605,482			$	2,258,091			$	19,246,496
Foreign currency, at cost	$	24				—				—			$	629,750
Net asset value per share
The Funds 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 1
Net assets	$	378,984,324			$	83,157,180				—			$	171,086,817
Shares outstanding		22,428,426				5,038,487				—				4,866,941
Net asset value, offering price and redemption price per share	$	16.90			$	16.50				—			$	35.15
Class NAV
Net assets	$	347,906,431			$	116,204,145			$	90,577,265			$	499,671,882
Shares outstanding		20,546,714				7,042,310				9,184,151				14,271,102
Net asset value, offering price and redemption price per share	$	16.93			$	16.50			$	9.86			$	35.01

 

362

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Optimized All Cap			Real Estate Equity				Real Estate Securities				Real Return Bond
Investments in unaffiliated issuers, at value	$	5,078,725			$	251,172,711			$	109,938,266			$	1,639,777,462
Investments in affiliated issuers, at value (Note 2)		25,611				9,536,714				1,082,669				—
Securities loaned, at value (Note 2)		25,109				9,349,720				1,061,440				—
Repurchase agreements, at value (Note 2)		—				3,709,000				1,410,000				13,442,000
Total investments, at value		5,129,445				273,768,145				113,492,375				1,653,219,462
Cash		49,082				136				14				239
Foreign currency, at value		—				—				—				4,208,531
Cash collateral at broker for futures contracts		—				—				—				5,315,000
Receivable for investments sold		2,967				—				1,201,868				453,528,615
Receivable for forward foreign currency exchange contracts (Note 2)		—				—				—				5,438,033
Receivable for fund shares sold		—				—				83,749				155,163
Dividends and interest receivable		12,896				602,840				123,199				9,881,667
Receivable for security lending income		423				1,692				846				—
Swap contracts, at value (Note 2)		—				—				—				6,929,603
Receivable due from adviser		1,823				—				—				—
Other assets		67				—				—				—
Total assets		5,196,703				274,372,813				114,902,051				2,138,676,313
Liabilities
Payable for investments purchased		3,603				—				1,182,459				957,313,660
Payable for forward foreign currency exchange contracts (Note 2)		—				—				—				1,868,194
Payable for fund shares repurchased		—				444,890				81,236				—
Payable upon return of securities loaned (Note 2)		25,611				9,536,714				1,082,669				—
Options written, at value (Note 2)		—				—				—				3,689,654
Investments sold short, at value (Note 2)		—				—				—				297,472,320
Payable for interest on securities sold short		—				—				—				1,169,898
Swap contracts, at value (Note 2)		—				—				—				11,540,906
Payable for futures variation margin		—				—				—				199,283
Payable to affiliates
Fund administration fees		1,321				4,491				2,571				17,128
Trustees’ fees		—				25				83				123
Other payables and accrued expenses		39,827				41,186				43,877				138,690
Total liabilities		70,362				10,027,306				2,392,895				1,273,409,856
Net assets
Capital paid-in	$	5,752,381			$	294,334,905			$	108,090,123			$	805,921,691
Undistributed net investment income (loss)		39,400				2,886,732				851,642				6,118,884
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written, short sales, foreign currency transactions and swap agreements		(450,929	)			(10,184,341	)			(5,474,029	)			64,970,985
Net unrealized appreciation (depreciation) on investments, futures, options written, short sales, swap agreements and translation of assets and liabilities in foreign currencies		(214,511	)			(22,691,789	)			9,041,420				(11,745,103	)
Net assets	$	5,126,341			$	264,345,507			$	112,509,156			$	865,266,457
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	5,318,345			$	286,923,220			$	103,368,286			$	1,663,578,341
Investments in affiliated issuers, at cost	$	25,611			$	9,536,714			$	1,082,669				—
Foreign currency, at cost		—				—				—			$	4,260,801
Proceeds received on short sales		—				—				—			$	293,193,547
Premiums received on written options		—				—				—			$	3,293,412
Net unamortized upfront payment on swaps		—				—				—			$	952,241

 

363

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Net asset value per share	Optimized All Cap		Real Estate Equity			Real Estate Securities			Real Return Bond
The Funds 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	$	1,266,832			—			—			—
Shares outstanding		141,217			—			—			—
Net asset value and redemption price per share	$	8.97			—			—			—
Class B1
Net assets	$	1,248,409			—			—			—
Shares outstanding		140,131			—			—			—
Net asset value, offering price and redemption price per share	$	8.91			—			—			—
Class C1
Net assets	$	1,248,408			—			—			—
Shares outstanding		140,131			—			—			—
Net asset value, offering price and redemption price per share	$	8.91			—			—			—
Class I
Net assets	$	1,274,814			—			—			—
Shares outstanding		141,681			—			—			—
Net asset value, offering price and redemption price per share	$	9.00			—			—			—
Class 1
Net assets		—			—		$	112,509,156		$	46,403,868
Shares outstanding		—			—			8,269,776			3,280,221
Net asset value, offering price and redemption price per share		—			—		$	13.60		$	14.15
Class NAV
Net assets	$	87,878		$	264,345,507			—		$	818,862,589
Shares outstanding		9,764			31,039,640			—			58,346,911
Net asset value, offering price and redemption price per share	$	9.00		$	8.52			—		$	14.03
Maximum Public Offering Price Per Share:
Class A (net asset value per share ÷ 95%)2	$	9.44			—			—			—

 

1	Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.
2	On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

 

364

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Small Cap			Small Cap Index				Small Cap Opportunities				Small Company
Investments in unaffiliated issuers, at value	$	121,605,382			$	112,608,713			$	114,636,736			$	61,664,190
Investments in affiliated issuers, at value (Note 2)		5,737,731				11,596,721				4,653,804				2,333,192
Securities loaned, at value (Note 2)		5,625,226				11,369,335				4,562,553				2,287,443
Repurchase agreements, at value (Note 2)		1,579,000				—				3,089,000				354,000
Total investments, at value		134,547,339				135,574,769				126,942,093				66,638,825
Cash		364				28,330				1,066				479
Cash collateral at broker for futures contracts		—				1,300,000				—				—
Receivable for investments sold		401,063				56,659				144,866				—
Receivable for fund shares sold		—				—				14,188				1,502
Dividends and interest receivable		24,848				101,366				65,251				24,619
Receivable for security lending income		56,250				32,185				32,185				5,080
Total assets		135,029,864				137,093,309				127,199,649				66,670,505
Liabilities
Payable for investments purchased		642,297				—				135,388				—
Payable for fund shares repurchased		350,876				—				—				—
Payable upon return of securities loaned (Note 2)		5,737,731				11,596,721				4,653,804				2,333,192
Payable for futures variation margin		—				58,650				—				—
Payable to affiliates
Fund administration fees		3,758				578				5,066				2,085
Trustees’ fees		58				—				150				30
Investment management fees		—				2,325				—				—
Other payables and accrued expenses		39,076				38,056				42,307				53,156
Total liabilities		6,773,796				11,696,330				4,836,715				2,388,463
Net assets
Capital paid-in	$	133,649,907			$	126,442,760			$	134,283,241			$	70,744,417
Undistributed net investment income (loss)		140,032				666,572				1,206,817				—
Accumulated undistributed net realized gain (loss) on investments, futures contracts and foreign currency transactions		(12,462,908	)			(85,335	)			(15,446,097	)			(9,748,297	)
Net unrealized appreciation (depreciation) on investments and futures		6,929,037				(1,627,018	)			2,318,973				3,285,922
Net assets	$	128,256,068			$	125,396,979			$	122,362,934			$	64,282,042
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	121,880,571			$	126,235,746			$	119,969,316			$	61,019,711
Investments in affiliated issuers, at cost	$	5,737,731			$	11,596,721			$	4,653,804			$	2,333,192
Net asset value per share
The Funds 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 1
Net assets	$	1,943,217				—			$	25,413,443			$	4,386,193
Shares outstanding		160,513				—				1,346,910				316,286
Net asset value, offering price and redemption price per share	$	12.11				—			$	18.87			$	13.87
Class NAV
Net assets	$	126,312,851			$	125,396,979			$	96,949,491			$	59,895,849
Shares outstanding		10,405,433				9,674,261				5,160,043				4,308,816
Net asset value, offering price and redemption price per share	$	12.14			$	12.96			$	18.79			$	13.90

 

365

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Small Company Growth			Small Company Value			Spectrum Income				Strategic Bond
Investments in unaffiliated issuers, at value	$	149,400,031			$	520,228,229		$	1,070,538,023			$	521,743,140
Investments in affiliated issuers, at value (Note 2)		12,619,313				31,096,975			5,918,047				—
Securities loaned, at value (Note 2)		12,371,876				30,487,230			5,802,007				—
Repurchase agreements, at value (Note 2)		7,049,000				2,130,000			28,748,000				75,900,000
Total investments, at value		181,440,220				583,942,434			1,111,006,077				597,643,140
Cash		235				887			647				1,043,517
Foreign currency, at value		—				—			783,882				5,261,540
Receivable for investments sold		81,567				51,117			7,938,229				7,317,423
Receivable for forward foreign currency exchange contracts (Note 2)		—				—			1,110,120				—
Receivable for fund shares sold		—				245,978			—				49,476
Dividends and interest receivable		58,939				633,870			11,612,942				6,653,947
Receivable for security lending income		4,234				21,175			2,542				2,542
Swap contracts, at value (Note 2)		—				—			7,366				—
Receivable for futures variation margin		—				—			13,761				3,032,596
Other assets		42				—			—				—
Total assets		181,585,237				584,895,461			1,132,475,566				621,004,181
Liabilities
Payable for investments purchased		284,744				1,297,831			58,660,827				112,235,297
Payable for forward foreign currency exchange contracts (Note 2)		—				—			435,373				18,005
Payable for fund shares repurchased		—				655,678			1,794,320				—
Payable upon return of securities loaned (Note 2)		12,619,313				31,096,975			5,918,047				—
Options written, at value (Note 2)		—				—			—				840,991
Swap contracts, at value (Note 2)		—				—			58,759				—
Payable to affiliates
Fund administration fees		4,551				7,517			18,659				8,768
Trustees’ fees		24				44			113				52
Other payables and accrued expenses		38,521				51,778			269,547				106,169
Total liabilities		12,947,153				33,109,823			67,155,645				113,209,282
Net assets
Capital paid-in	$	169,218,828			$	497,437,156		$	1,072,318,455			$	568,103,185
Undistributed net investment income (loss)		—				1,527,971			14,174,697	��			4,216,645
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written, foreign currency transactions and swap agreements		(10,617,941	)			6,370,867			4,434,618				(9,535,539	)
Net unrealized appreciation (depreciation) on investments, futures, options written, swap agreements and translation of assets and liabilities in foreign currencies		10,037,197				46,449,644			(25,607,849	)			(54,989,392	)
Net assets	$	168,638,084			$	551,785,638		$	1,065,319,921			$	507,794,899
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	158,783,710			$	506,395,815		$	1,131,265,812			$	654,976,270
Investments in affiliated issuers, at cost	$	12,619,313			$	31,096,975		$	5,918,047				—
Foreign currency, at cost		—				—		$	794,715			$	5,226,794
Premiums received on written options		—				—			—			$	666,942
Net asset value per share
The Funds 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 1
Net assets		—			$	133,791,232			—			$	38,240,512
Shares outstanding		—				5,370,969			—				3,651,652
Net asset value, offering price and redemption price per share		—			$	24.91			—			$	10.47
Class NAV
Net assets	$	168,638,084			$	417,994,406		$	1,065,319,921			$	469,554,387
Shares outstanding		14,117,688				16,794,761			105,544,992				44,938,216
Net asset value, offering price and redemption price per share	$	11.95			$	24.89		$	10.09			$	10.45

 

366

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Strategic Income			Total Bond Market				Total Return				U.S. Government Securities
Investments in unaffiliated issuers, at value	$	450,423,513			$	57,614,013			$	2,271,014,681			$	236,956,517
Repurchase agreements, at value (Note 2)		—				1,621,000				130,757,000				47,400,000
Total investments, at value		450,423,513				59,235,013				2,401,771,681				284,356,517
Cash		30,434				630				139				319,074
Foreign currency, at value		956,931				—				4,996,567				—
Cash collateral at broker for futures contracts		316,800				—				9,515,000				—
Receivable for investments sold		666,412				—				244,660,777				7,460,621
Receivable for forward foreign currency exchange contracts (Note 2)		9,752,599				—				6,636,698				—
Receivable for fund shares sold		5,750				—				67,591				—
Dividends and interest receivable		7,610,468				479,903				14,201,350				600,265
Receivable for security lending income		84				—				—				—
Swap contracts, at value (Note 2)		—				—				8,421,658				—
Receivable for futures variation margin		33,000				—				—				61,536
Receivable due from adviser		—				—				3,907				—
Total assets		469,795,991				59,715,546				2,690,275,368				292,798,013
Liabilities
Payable for investments purchased		3,419,238				—				667,757,722				92,493,043
Payable for forward foreign currency exchange contracts (Note 2)		2,880,436				—				3,700,692				—
Payable for fund shares repurchased		—				23,081				152,567				162,169
Options written, at value (Note 2)		7,926				—				5,545,899				—
Investments sold short, at value (Note 2)		—				—				159,547,379				—
Payable for interest on securities sold short		—				—				1,156,306				—
Swap contracts, at value (Note 2)		—				—				12,075,264				—
Payable for futures variation margin		—				—				186,783				—
Payable to affiliates
Fund administration fees		7,866				1,047				30,767				3,762
Trustees’ fees		47				7				175				24
Investment management fees		—				321				—				—
Other payables and accrued expenses		82,460				45,179				179,385				67,112
Total liabilities		6,397,973				69,635				850,332,939				92,726,110
Net assets
Capital paid-in	$	463,969,656			$	59,275,453			$	1,797,961,119			$	212,226,059
Undistributed net investment income (loss)		12,731,682				454,429				28,478,791				1,254,817
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written, short sales, foreign currency transactions and swap agreements		(3,862,742	)			(22,534	)			51,752,952				5,932,102
Net unrealized appreciation (depreciation) on investments, futures, options written, short sales, swap agreements and translation of assets and liabilities in foreign currencies		(9,440,578	)			(61,437	)			(38,250,433	)			(19,341,075	)
Net assets	$	463,398,018			$	59,645,911			$	1,839,942,429			$	200,071,903
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	466,444,930			$	59,296,450			$	2,452,053,719			$	303,780,158
Investments in affiliated issuers, at cost		—				—				—				—
Foreign currency, at cost	$	987,358				—			$	5,166,096				—
Proceeds received on short sales		—				—			$	159,066,409				—
Premiums received on written options	$	49,293				—			$	8,499,252				—
Net unamortized upfront payment on swaps		—				—				5,530,685				—
Net asset value per share
The Funds 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 1
Net assets		—				—			$	159,757,911			$	40,629,709
Shares outstanding		—				—				11,320,906				3,207,052
Net asset value, offering price and redemption price per share		—				—			$	14.11			$	12.67
Class NAV
Net assets	$	463,398,018			$	59,645,911			$	1,680,184,518			$	159,442,194
Shares outstanding		46,236,861				5,925,833				119,350,348				12,616,658
Net asset value, offering price and redemption price per share	$	10.02			$	10.07			$	14.08			$	12.64

 

367

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	U.S. High Yield Bond			U.S. Multi Sector				Value				Value & Restructuring
Investments in unaffiliated issuers, at value	$	504,111,121			$	871,156,071			$	25,809,295			$	526,673,151
Investments in affiliated issuers, at value (Note 2)		1,261,159				346,637				—				13,202,930
Securities loaned, at value (Note 2)		1,236,430				339,840				—				12,944,049
Repurchase agreements, at value (Note 2)		15,884,000				29,693,000				—				30,461,000
Total investments, at value		522,492,710				901,535,548				25,809,295				583,281,130
Cash		647				324				66,061				225
Foreign currency, at value		—				—				—				3,632
Cash collateral at broker for futures contracts		—				1,224,000				—				—
Receivable for investments sold		3,668,503				—				—				28,341
Receivable for fund shares sold		6,896				—				17,781				—
Dividends and interest receivable		10,228,903				2,783,623				53,931				1,024,075
Receivable for security lending income		22,666				16,094				—				3,388
Receivable due from adviser		—				—				5,728				—
Total assets		536,420,325				905,559,589				25,952,796				584,340,791
Liabilities
Payable for investments purchased		5,547,569				—				25,788				2,636,870
Payable for fund shares repurchased		297,932				383,767				—				231,989
Payable upon return of securities loaned (Note 2)		1,261,159				346,637				—				13,202,930
Payable for futures variation margin		—				227,075				—				—
Payable to affiliates
Fund administration fees		5,892				31,570				197				7,613
Trustees’ fees		28				297				—				22
Other payables and accrued expenses		67,605				88,663				43,875				64,702
Total liabilities		7,180,185				1,078,009				69,860				16,144,126
Net assets
Capital paid-in	$	562,928,857			$	977,659,730			$	27,905,228			$	539,551,456
Undistributed net investment income (loss)		6,381,964				11,000,977				123,620				3,347,033
Accumulated undistributed net realized gain (loss) on investments, futures contracts, options written and foreign currency transactions		(13,239,274	)			(100,596,127	)			(2,317,908	)			(32,456,537	)
Net unrealized appreciation (depreciation) on investments, futures, options written and translation of assets and liabilities in foreign currencies		(26,831,407	)			16,417,000				171,996				57,754,713
Net assets	$	529,240,140			$	904,481,580			$	25,882,936			$	568,196,665
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	548,062,958			$	885,160,108			$	25,637,299			$	512,323,921
Investments in affiliated issuers, at cost	$	1,261,159			$	346,637				—			$	13,202,930
Foreign currency, at cost		—				—				—			$	3,616
Net asset value per share
The Funds 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 1
Net assets	$	5,772,007				—				—				—
Shares outstanding		477,407				—				—				—
Net asset value, offering price and redemption price per share	$	12.09				—				—				—
Class NAV
Net assets	$	523,468,133			$	904,481,580			$	25,882,936			$	568,196,665
Shares outstanding		43,313,236				93,758,129				2,715,926				47,408,986
Net asset value, offering price and redemption price per share	$	12.09			$	9.65			$	9.53			$	11.98

 

368

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2008

Assets	Vista
Investments in unaffiliated issuers, at value	$	111,441,703
Investments in affiliated issuers, at value (Note 2)		1,507,413
Securities loaned, at value (Note 2)		1,477,856
Repurchase agreements, at value (Note 2)		3,065,000
Total investments, at value		117,491,972
Cash		388
Receivable for investments sold		3,681,896
Receivable for forward foreign currency exchange contracts (Note 2)		2,935
Dividends and interest receivable		31,272
Receivable for security lending income		846
Total assets		121,209,309
Liabilities
Payable for investments purchased		5,835,044
Payable for forward foreign currency exchange contracts (Note 2)		1,969
Payable upon return of securities loaned (Note 2)		1,507,413
Payable to affiliates
Fund administration fees		3,845
Trustees’ fees		39
Other payables and accrued expenses		49,297
Total liabilities		7,397,607
Net assets
Capital paid-in	$	81,116,242
Undistributed net investment income (loss)		(367	)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		13,250,362
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		19,445,465
Net assets	$	113,811,702
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	96,539,566
Investments in affiliated issuers, at cost	$	1,507,413
Net asset value per share
The Funds 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 NAV
Net assets	$	113,811,702
Shares outstanding		9,070,101
Net asset value, offering price and redemption price per share	$	12.55

 

369

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Absolute Return			Active Bond				All Cap Core				All Cap Growth
Interest	$	11,301			$	33,372,675			$	1,878,012			$	154,478
Dividends		75,036				83,529				10,696,663				1,100,915
Securities lending		—				—				48,388				16,269
Income from affiliated issuers		—				—				10,935				3,345
Income distributions received from affiliated underlying funds		111,996				—				—				—
Less foreign taxes withheld		—				(1,289	)			—				(5,988	)
Total investment income		198,333				33,454,915				12,633,998				1,269,019
Expenses
Investment management fees (Note 4)		9,641				3,530,950				4,972,356				1,109,549
Class A distribution and service fees (Note 4)		4,264				—				—				—
Class B distribution and service fees (Note 4)		14,049				—				—				—
Class C distribution and service fees (Note 4)		14,049				—				—				—
Class 1 distribution and service fees (Note 4)		718				17,434				—				15,535
Fund administration fees (Note 4)		1,130				87,025				93,684				18,881
Audit and legal fees		34,092				51,596				41,004				33,190
Custodian fees		10,829				249,072				74,057				43,093
Trustees’ fees (Note 5)		60				5,808				6,417				1,392
Registration and filing fees		7,410				11,980				25,947				4,263
Miscellaneous		21				8,036				3,716				689
Total expenses		96,263				3,961,901				5,217,181				1,226,592
Less: expense reductions (Note 4)		(50,708	)			—				—				—
Net expenses		45,555				3,961,901				5,217,181				1,226,592
Net investment income (loss)		152,778				29,493,014				7,416,817				42,427
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(18,031	)			6,257,046				(58,257,426	)			1,581,672
Investments in affiliated underlying funds		(37,412	)			—				—				—
Capital gain distributions received from affiliated underlying funds		167,638				—				—				—
Futures contracts		(21,795	)			—				(7,987,455	)			—
Options written		4,394				—				—				—
Swap contracts		—				(401,240	)			—				—
Foreign currency transactions		—				(8,431	)			—				(1,401	)
		94,794				5,847,375				(66,244,881	)			1,580,271
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(154,655	)			(31,836,395	)			(18,520,718	)			(20,345,063	)
Investments in affiliated underlying funds		(313,391	)			—				—				—
Futures contracts		—				—				772,549				—
Swap contracts		—				51,187				—				—
Translation of assets and liabilities in foreign currencies		—				(11,953	)			—				(1,550	)
		(468,046	)			(31,797,161	)			(17,748,169	)			(20,346,613	)
Net realized and unrealized gain (loss)		(373,252	)			(25,949,786	)			(83,993,050	)			(18,766,342	)
Increase (decrease) in net assets from operations		($220,474	)		$	3,543,228				($76,576,233	)			($18,723,915	)

 

370

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	All Cap Value			American Diversified Growth & Income1				American Fundamental Holdings1				American Global Diversification1
Interest	$	100,291				—				—				—
Dividends		1,527,611			$	2,494			$	3,791			$	3,265
Securities lending		16,269				—				—				—
Income from affiliated issuers		3,345				—				—				—
Less foreign taxes withheld		(6,365	)			—				—				—
Total investment income		1,641,151				2,494				3,791				3,265
Expenses
Investment management fees (Note 4)		817,965				74				74				72
Class 1 distribution and service fees (Note 4)		12,680				81				81				80
Fund administration fees (Note 4)		12,914				41				41				41
Audit and legal fees		32,777				23,362				23,362				23,362
Custodian fees		20,478				2,066				2,066				2,066
Trustees’ fees (Note 5)		1,227				4				4				4
Registration and filing fees		3,545				15				15				15
Miscellaneous		651				—				—				—
Total expenses		902,237				25,643				25,643				25,640
Less: expense reductions (Note 4)		—				(25,511	)			(25,511	)			(25,509	)
Net expenses		902,237				132				132				131
Net investment income (loss)		738,914				2,362				3,659				3,134
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		3,762,451				(36	)			(40	)			(51	)
		3,762,451				(36	)			(40	)			(51	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(9,162,486	)			(27,310	)			(25,733	)			(52,309	)
		(9,162,486	)			(27,310	)			(25,733	)			(52,309	)
Net realized and unrealized gain (loss)		(5,400,035	)			(27,346	)			(25,773	)			(52,360	)
Increase (decrease) in net assets from operations		($4,661,121	)			($24,984	)			($22,114	)			($49,226	)

 

1          Period from 7-1-08 (commencement of operations) to 8-31-08.

371

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Blue Chip Growth			Capital Appreciation				Core Bond				Core Equity
Interest	$	722,119			$	654,814			$	14,635,004			$	822,336
Dividends		20,870,815				9,487,041				—				11,284,489
Securities lending		433,881				976,231				—				—
Income from affiliated issuers		89,186				200,669				—				—
Less foreign taxes withheld		(324,948	)			(245,402	)			(1,964	)			—
Total investment income		21,791,053				11,073,353				14,633,040				12,106,825
Expenses
Investment management fees (Note 4)		15,922,509				6,852,945				1,771,578				6,478,680
Class 1 distribution and service fees (Note 4)		99,821				32,603				1,704				5,570
Fund administration fees (Note 4)		290,267				139,166				41,100				127,297
Audit and legal fees		56,456				42,673				46,344				43,169
Custodian fees		228,728				89,117				206,738				124,511
Trustees’ fees (Note 5)		19,842				9,323				2,805				8,693
Registration and filing fees		45,144				33,203				6,995				21,843
Miscellaneous		12,445				3,976				6,725				4,460
Total expenses		16,675,212				7,203,006				2,083,989				6,814,223
Less: expense reductions (Note 4)		(618,574	)			—				—				—
Net expenses		16,056,638				7,203,006				2,083,989				6,814,223
Net investment income (loss)		5,734,415				3,870,347				12,549,051				5,292,602
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(86,646,479	)			(93,206,761	)			3,571,383				(94,875,437	)
Foreign currency transactions		(93,751	)			30				—				—
		(86,740,230	)			(93,206,731	)			3,571,383				(94,875,437	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(78,708,287	)			17,409,819				(1,700,465	)			(219,063,955	)
Translation of assets and liabilities in foreign currencies		(7,216	)			(1	)			—				—
		(78,715,503	)			17,409,818				(1,700,465	)			(219,063,955	)
Net realized and unrealized gain (loss)		(165,455,733	)			(75,796,913	)			1,870,918				(313,939,392	)
Increase (decrease) in net assets from operations		($159,721,318	)			($71,926,566	)		$	14,419,969				($308,646,790	)

 

372

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Emerging Growth			Emerging Markets Value				Emerging Small Company				Equity-Income
Interest	$	280,251			$	82,167			$	102,621			$	1,769,985
Dividends		188,968				18,090,189				356,967				25,192,088
Securities lending		3,256,569				—				108,469				553,700
Income from affiliated issuers		697,693				—				22,296				119,661
Less foreign taxes withheld		—				(1,530,055	)			(5,168	)			(97,867	)
Total investment income		4,423,481				16,642,301				585,185				27,537,567
Expenses
Investment management fees (Note 4)		1,297,691				4,970,042				636,460				7,549,328
Class 1 distribution and service fees (Note 4)		53,319				—				21,342				92,783
Fund administration fees (Note 4)		25,019				76,729				9,402				138,652
Audit and legal fees		32,420				41,891				36,092				44,183
Custodian fees		17,345				508,673				20,481				120,933
Trustees’ fees (Note 5)		1,681				4,872				640				9,525
Registration and filing fees		2,273				19,080				3,589				21,049
Miscellaneous		6,590				14,747				305				5,718
Total expenses		1,436,338				5,636,034				728,311				7,982,171
Less: expense reductions (Note 4)		—				—				(7,037	)			(294,297	)
Net expenses		1,436,338				5,636,034				721,274				7,687,874
Net investment income (loss)		2,987,143				11,006,267				(136,089	)			19,849,693
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(25,059,753	)			13,473,532	1			(9,063,473	)			72,574,760
Options written		(101,389	)			—				—				—
Foreign currency transactions		—				(34,266	)			7,468				(5,209	)
		(25,161,142	)			13,439,266				(9,056,005	)			72,569,551
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(13,705,851	)			(106,321,576	)2			(926,544	)			(208,591,986	)
Options written		3,540				—				—				—
Translation of assets and liabilities in foreign currencies		—				(33,436	)			(118	)			(7,198	)
		(13,702,311	)			(106,355,012	)			(926,662	)			(208,599,184	)
Net realized and unrealized gain (loss)		(38,863,453	)			(92,915,746	)			(9,982,667	)			(136,029,633	)
Increase (decrease) in net assets from operations		($35,876,310	)			($81,909,479	)			($10,118,756	)			($116,179,940	)

 

1	Net of India foreign taxes of $2,737.
2	Net of $96,306 decrease in deferred India foreign withholding taxes.

 

373

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Fundamental Value			Global Bond				Global Real Estate				High Income
Interest	$	1,990,305			$	40,865,314			$	357,745			$	38,744,896
Dividends		20,074,274				27,563				16,406,085				691,067
Securities lending		539,978				—				206,094				21,850
Income from affiliated issuers		130,608				—				38,483				5,089
Less foreign taxes withheld		(137,221	)			(19,995	)			(1,181,777	)			—
Total investment income		22,597,944				40,872,882				15,826,630				39,462,902
Expenses
Investment management fees (Note 4)		9,894,378				5,512,295				4,872,428				2,782,139
Class 1 distribution and service fees (Note 4)		40,387				31,493				—				—
Fund administration fees (Note 4)		185,288				121,689				74,228				59,896
Audit and legal fees		46,779				100,664				45,016				48,949
Custodian fees		243,051				723,205				564,224				57,656
Trustees’ fees (Note 5)		12,508				8,400				5,215				4,187
Registration and filing fees		45,367				12,737				24,129				17,911
Miscellaneous		8,751				29,844				8,314				5,141
Total expenses		10,476,509				6,540,327				5,593,554				2,975,879
Net investment income (loss)		12,121,435				34,332,555				10,233,076				36,487,023
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(21,355,215	)			30,324,232				(54,746,176	)			(1,047,467	)
Futures contracts		—				4,776,531				—				—
Options written		—				(15,890,945	)			—				—
Short sales		—				(4,820,314	)			—				—
Swap contracts		—				41,797,745				—				—
Foreign currency transactions		(227,883	)			43,391,707				(5,996,015	)			1,438,341
		(21,583,098	)			99,578,956				(60,742,191	)			390,874
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(157,894,917	)			(41,319,695	)			(90,482,901	)			(103,697,063	)
Futures contracts		—				(5,481,247	)			—				—
Options written		—				217,305				—				—
Short sales		—				420,100				—				—
Swap contracts		—				(3,629,767	)			—				—
Translation of assets and liabilities in foreign currencies		(1,249	)			(9,164,684	)			1,974,552				281,865
		(157,896,166	)			(58,957,988	)			(88,508,349	)			(103,415,198	)
Net realized and unrealized gain (loss)		(179,479,264	)			40,620,968				(149,250,540	)			(103,024,324	)
Increase (decrease) in net assets from operations		($167,357,829	)		$	74,953,523				($139,017,464	)			($66,537,301	)

 

374

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	High Yield			Index 500				International Equity Index				International Opportunities
Interest	$	151,833,036			$	944,862			$	281,680			$	1,355,635
Dividends		519,144				11,000,856				16,032,402				19,430,343
Securities lending		2,222,503				—				349,273				540,962
Income from affiliated issuers		492,754				—				75,480				115,026
Less foreign taxes withheld		(113,137	)			(377	)			(1,324,306	)			(1,469,226	)
Total investment income		154,954,300				11,945,341				15,414,529				19,972,740
Expenses
Investment management fees (Note 4)		10,451,277				2,499,149				2,532,732				7,276,584
Class 1 distribution and service fees (Note 4)		22,986				—				—				16,705
Fund administration fees (Note 4)		236,773				68,884				69,986				124,109
Audit and legal fees		73,299				35,032				40,146				45,052
Custodian fees		392,747				11,951				10,682				834,609
Trustees’ fees (Note 5)		16,037				4,495				4,778				8,374
Registration and filing fees		26,971				41,266				17,206				23,737
Miscellaneous		12,318				7,289				9,202				5,750
Total expenses		11,232,408				2,668,066				2,684,732				8,334,920
Net investment income (loss)		143,721,892				9,277,275				12,729,797				11,637,820
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(51,868,691	)			(815,268	)			5,155,871				(18,244,025	)
Futures contracts		—				(1,897,764	)			(3,554,178	)			—
Options written		71,250				—				—				—
Foreign currency transactions		2,502,497				67				210,220				(1,100,634	)
		(49,294,944	)			(2,712,965	)			1,811,913				(19,344,659	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(132,446,174	)			(88,141,586	)			(82,393,414	) 1			(91,699,759	)
Futures contracts		—				139,484				(352,801	)			—
Translation of assets and liabilities in foreign currencies		87,423				—				(458,289	)			(58,131	)
		(132,358,751	)			(88,002,102	)			(83,204,504	)			(91,757,890	)
Net realized and unrealized gain (loss)		(181,653,695	)			(90,715,067	)			(81,392,591	)			(111,102,549	)
Increase (decrease) in net assets from operations		($37,931,803	)			($81,437,792	)			($68,662,794	)			($99,464,729	)

 

1          Net of $4,189 increase in deferred India foreign withholding taxes.

 

375

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	International Small Cap			International Small Company				International Value				Investment Quality Bond
Interest	$	909,243			$	96,158			$	2,046,282			$	10,101,791
Dividends		12,572,632				8,867,114				62,911,105				—
Securities lending		478				83,742				1,235,781				—
Income from affiliated issuers		2,611				19,026				280,974				—
Less foreign taxes withheld		(1,171,852	)			(592,080	)			(5,971,215	)			(7,775	)
Total investment income		12,313,112				8,473,960				60,502,927				10,094,016
Expenses
Investment management fees (Note 4)		3,923,630				2,944,178				12,562,507				1,107,626
Class 1 distribution and service fees (Note 4)		30,684				—				197,988				24,811
Fund administration fees (Note 4)		64,180				42,850				231,282				27,262
Audit and legal fees		41,173				44,027				56,976				45,556
Custodian fees		744,050				309,169				1,590,228				139,789
Trustees’ fees (Note 5)		4,642				3,003				15,876				1,858
Registration and filing fees		9,216				16,944				40,950				5,990
Miscellaneous		11,296				3,581				14,455				2,070
Total expenses		4,828,871				3,363,752				14,710,262				1,354,962
Less: expense reductions (Note 4)		—				—				(178,792	)			—
Net expenses		4,828,871				3,363,752				14,531,470				1,354,962
Net investment income (loss)		7,484,241				5,110,208				45,971,457				8,739,054
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		32,277,710				9,443,987	1			40,919,014				(1,563,980	)
Futures contracts		—				—				—				1,214,186
Bond forward contracts		—				—				—				566,271
Foreign currency transactions		237,395				(35,918	)			(1,724,158	)			466,580
		32,515,105				9,408,069				39,194,856				683,057
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(145,908,061	)			(94,354,073	)2			(356,253,452	)			(1,962,729	)
Futures contracts		—				—				—				(10,501	)
Bond forward contracts		—				—				—				65,378
Swap contracts		—				—				—				(3,597	)
Translation of assets and liabilities in foreign currencies		(274,309	)			(25,859	)			(530,881	)			180,611
		(146,182,370	)			(94,379,932	)			(356,784,333	)			(1,730,838	)
Net realized and unrealized gain (loss)		(113,667,265	)			(84,971,863	)			(317,589,477	)			(1,047,781	)
Increase (decrease) in net assets from operations		($106,183,024	)			($79,861,655	)			($271,618,020	)		$	7,691,273

 

1	Net of India foreign taxes of $1,435.
2	Net of $24,563 decrease in deferred India foreign withholding taxes.

 

376

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Large Cap			Large Cap Value				Mid Cap Index				Mid Cap Intersection
Interest	$	192,849			$	100,985			$	504,405			$	186,189
Dividends		7,536,843				12,116,242				4,271,913				2,768,735
Securities lending		16,269				65,080				331,683				—
Income from affiliated issuers		3,345				13,378				77,190				—
Less foreign taxes withheld		—				—				—				(1,400	)
Total investment income		7,749,306				12,295,685				5,185,191				2,953,524
Expenses
Investment management fees (Note 4)		2,733,121				4,940,926				1,714,425				2,695,053
Class 1 distribution and service fees (Note 4)		13,694				59,948				—				—
Fund administration fees (Note 4)		58,892				83,203				45,151				47,265
Audit and legal fees		36,995				25,105				21,024				35,023
Custodian fees		48,779				43,012				4,743				33,792
Trustees’ fees (Note 5)		3,781				6,198				4,177				3,296
Registration and filing fees		10,709				9,431				—				12,018
Miscellaneous		1,941				11,524				6,704				1,836
Total expenses		2,907,912				5,179,347				1,796,224				2,828,283
Net investment income (loss)		4,841,394				7,116,338				3,388,967				125,241
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(6,228,049	)			(45,727,621	)			9,210,580				(45,628,616	)
Futures contracts		—				—				(2,110,680	)			265,714
Foreign currency transactions		—				—				—				160
		(6,228,049	)			(45,727,621	)			7,099,900				(45,362,742	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(47,381,165	)			(47,559,985	)			(32,738,182	)			10,722,807
Futures contracts		—				—				1,277,882				13,422
		(47,381,165	)			(47,559,985	)			(31,460,300	)			10,736,229
Net realized and unrealized gain (loss)		(53,609,214	)			(93,287,606	)			(24,360,400	)			(34,626,513	)
Increase (decrease) in net assets from operations		($48,767,820	)			($86,171,268	)			($20,971,433	)			($34,501,272	)

 

377

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Mid Cap Stock			Mid Cap Value				Mid Cap Value Equity				Natural Resources
Interest	$	1,137,525			$	242,002			$	85,250			$	839,602
Dividends		3,881,638				4,327,444				1,876,724				11,293,364
Securities lending		325,409				233,706				64,858				352,033
Income from affiliated issuers		66,890				54,679				14,196				72,794
Less foreign taxes withheld		(36,565	)			(83	)			(10,780	)			(741,627	)
Total investment income		5,374,897				4,857,748				2,030,248				11,816,166
Expenses
Investment management fees (Note 4)		5,652,046				2,118,948				1,065,050				7,794,620
Class 1 distribution and service fees (Note 4)		153,196				47,957				—				81,226
Fund administration fees (Note 4)		99,056				39,391				19,460				116,952
Audit and legal fees		40,124				35,313				33,220				43,481
Custodian fees		159,069				57,482				55,234				235,899
Trustees’ fees (Note 5)		6,647				2,556				1,575				8,225
Registration and filing fees		23,634				5,757				6,915				12,306
Miscellaneous		3,245				1,510				4,927				8,751
Total expenses		6,137,017				2,308,914				1,186,381				8,301,460
Net investment income (loss)		(762,120	)			2,548,834				843,867				3,514,706
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(28,081,137	)			(13,517,826	)			1,348,038				159,686,102
Foreign currency transactions		32,076				—				(538	)			78,895
		(28,049,061	)			(13,517,826	)			1,347,500				159,764,997
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(23,480,557	)			(36,145,957	)			(15,636,960	)			(84,031,804	)
Translation of assets and liabilities in foreign currencies		(706	)			—				71				(124	)
		(23,481,263	)			(36,145,957	)			(15,636,889	)			(84,031,928	)
Net realized and unrealized gain (loss)		(51,530,324	)			(49,663,783	)			(14,289,389	)			75,733,069
Increase (decrease) in net assets from operations		($52,292,444	)			($47,114,949	)			($13,445,522	)		$	79,247,775

 

378

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Optimized All Cap			Real Estate Equity				Real Estate Securities				Real Return Bond
Interest	$	763			$	494,448			$	15,950			$	47,271,081
Dividends		111,537				6,966,449				3,637,268				51,868
Securities lending		8,052				178,867				10,846				—
Income from affiliated issuers		1,718				38,929				2,230				—
Less foreign taxes withheld		(1,857	)			(22,114	)			(738	)			—
Total investment income		120,213				7,656,579				3,665,556				47,322,949
Expenses
Investment management fees (Note 4)		38,651				2,149,044				854,898				6,319,183
Class A distribution and service fees (Note 4)		4,172				—				—				—
Class B distribution and service fees (Note 4)		13,755				—				—				—
Class C distribution and service fees (Note 4)		13,755				—				—				—
Class 1 distribution and service fees (Note 4)		—				—				61,064				15,971
Fund administration fees (Note 4)		992				35,914				16,949				141,322
Audit and legal fees		33,778				37,673				38,108				90,660
Custodian fees		20,167				26,111				23,917				345,524
Trustees’ fees (Note 5)		63				2,653				1,144				9,485
Registration and filing fees		2,574				10,915				—				47,961
Interest expense on securities sold short		—				—				—				5,733
Miscellaneous		29				2,905				3,131				45,112
Total expenses		127,936				2,265,215				999,211				7,020,951
Less: expense reductions (Note 4)		(51,790	)			(90,311	)			—				—
Net expenses		76,146				2,174,904				999,211				7,020,951
Net investment income (loss)		44,067				5,481,675				2,666,345				40,301,998
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(418,768	)			(7,289,028	)			(4,086,997	)			85,776,109
Futures contracts		—				—				—				(2,388,979	)
Options written		—				—				—				1,713,224
Short sales		—				—				—				(28,475	)
Swap contracts		—				—				—				2,945,960
Foreign currency transactions		14				(9,962	)			—				83,164
		(418,754	)			(7,298,990	)			(4,086,997	)			88,101,003
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(560,552	)			(24,348,780	)			(9,670,435	)			(8,836,519	)
Futures contracts		—				—				—				5,959,296
Options written		—				—				—				(467,906	)
Short sales		—				—	��			—				(4,253,952	)
Swap contracts		—				—				—				(4,503,736	)
Translation of assets and liabilities in foreign currencies		—				—				—				5,264,350
		(560,552	)			(24,348,780	)			(9,670,435	)			(6,838,467	)
Net realized and unrealized gain (loss)		(979,306	)			(31,647,770	)			(13,757,432	)			81,262,536
Increase (decrease) in net assets from operations		($935,239	)			($26,166,095	)			($11,091,087	)		$	121,564,534

 

379

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Small Cap			Small Cap Index				Small Cap Opportunities				Small Company
Interest	$	144,205			$	238,287			$	159,203			$	19,547
Dividends		499,408				957,596				3,956,630				655,531
Securities lending		868,500				412,185				543,958				171,203
Income from affiliated issuers		182,090				84,727				116,094				38,585
Less foreign taxes withheld		—				(341	)			(3,341	)			(2,641	)
Total investment income		1,694,203				1,692,454				4,772,544				882,225
Expenses
Investment management fees (Note 4)		1,297,690				420,606				1,737,400				858,202
Class 1 distribution and service fees (Note 4)		655				—				14,772				2,292
Fund administration fees (Note 4)		22,682				10,963				27,934				12,772
Audit and legal fees		37,515				32,471				36,610				32,571
Custodian fees		25,978				12,995				25,977				116,682
Trustees’ fees (Note 5)		1,833				869				2,089				892
Registration and filing fees		20,219				4,970				5,716				2,990
Miscellaneous		1,416				3,766				9,604				591
Total expenses		1,407,988				486,640				1,860,102				1,026,992
Net investment income (loss)		286,215				1,205,814				2,912,442				(144,767	)
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(5,431,546	)			378,834				(13,535,624	)			(9,148,903	)
Futures contracts		804,516				167,129				(1,556,544	)			(50,208	)
Foreign currency transactions		—				(71	)			6,218				—
		(4,627,030	)		��	545,892				(15,085,950	)			(9,199,111	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(17,037,854	)			(5,867,676	)			(24,787,124	)			(2,470,361	)
Futures contracts		—				573,424				—				—
		(17,037,854	)			(5,294,252	)			(24,787,124	)			(2,470,361	)
Net realized and unrealized gain (loss)		(21,664,884	)			(4,748,360	)			(39,873,074	)			(11,669,472	)
Increase (decrease) in net assets from operations		($21,378,669	)			($3,542,546	)			($36,960,632	)			($11,814,239	)

 

380

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Small Company Growth			Small Company Value				Spectrum Income				Strategic Bond
Interest	$	148,528			$	688,868			$	52,097,540			$	35,022,564
Dividends		604,609				5,940,721				4,844,852				358,956
Securities lending		291,265				797,760				96,490				32,542
Income from affiliated issuers		65,708				181,327				21,128				6,689
Less foreign taxes withheld		—				—				(123,543	)			(48,849	)
Total investment income		1,110,110				7,608,676				56,936,467				35,371,902
Expenses
Investment management fees (Note 4)		2,046,656				4,885,499				7,662,934				3,313,938
Class 1 distribution and service fees (Note 4)		—				64,737				—				21,093
Fund administration fees (Note 4)		31,751				68,891				154,324				73,433
Audit and legal fees		35,016				38,437				76,945				56,825
Custodian fees		40,281				70,028				1,015,537				262,156
Trustees’ fees (Note 5)		1,936				4,731				10,539				4,911
Registration and filing fees		9,208				20,238				24,733				11,540
Miscellaneous		1,096				3,750				16,258				884
Total expenses		2,165,944				5,156,311				8,961,270				3,744,780
Less: expense reductions (Note 4)		—				(240,630	)			(261,828	)			—
Net expenses		2,165,944				4,915,681				8,699,442				3,744,780
Net investment income (loss)		(1,055,834	)			2,692,995				48,237,025				31,627,122
Realized and unrealized gain (loss)
Net realized gain (loss) on						��
Investments in unaffiliated issuers		(9,465,233	)			12,998,479				7,178,222				(1,227,498	)
Futures contracts		—				—				187,031				(12,684,781	)
Options written		—				—				15,245				6,461,940
Swap contracts		—				—				17,632				—
Foreign currency transactions		—				—				6,825,081				39,211
		(9,465,233	)			12,998,479				14,223,211				(7,411,128	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(4,348,417	)			(10,448,671	)			(43,648,400	)			(48,102,422	)
Futures contracts		—				—				(16,591	)			4,119,147
Options written		—				—				—				406,578
Swap contracts		—				—				(47,557	)			—
Translation of assets and liabilities in foreign currencies		—				—				927,131				88,593
		(4,348,417	)			(10,448,671	)			(42,785,417	)			(43,488,104	)
Net realized and unrealized gain (loss)		(13,813,650	)			2,549,808				(28,562,206	)			(50,899,232	)
Increase (decrease) in net assets from operations		($14,869,484	)		$	5,242,803			$	19,674,819				($19,272,110	)

 

381

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Strategic Income			Total Bond Market				Total Return				U.S. Government Securities
Interest	$	30,506,499			$	2,845,021			$	92,031,671			$	9,198,977
Dividends		19,745				—				8,234				48,020
Securities lending		1,084				—				—				—
Income from affiliated issuers		223				—				—				—
Less foreign taxes withheld		(10,824	)			—				(4,510	)			—
Total investment income		30,516,727				2,845,021				92,035,395				9,246,997
Expenses
Investment management fees (Note 4)		3,099,402				271,761				12,479,999				1,227,948
Class 1 distribution and service fees (Note 4)		—				—				72,192				21,872
Fund administration fees (Note 4)		66,397				8,261				264,728				29,444
Audit and legal fees		49,773				42,508				101,165				51,028
Custodian fees		177,325				11,458				474,920				111,956
Trustees’ fees (Note 5)		4,548				576				17,779				2,051
Registration and filing fees		14,343				2,260				34,442				4,869
Miscellaneous		6,779				1,950				16,397				6,088
Total expenses		3,418,567				338,774				13,461,622				1,455,256
Less: expense reductions (Note 4)		—				(23,742	)			(86,371	)			—
Net expenses		3,418,567				315,032				13,375,251				1,455,256
Net investment income (loss)		27,098,160				2,529,989				78,660,144				7,791,741
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(1,891,915	)			298,341				35,961,683				4,624,239
Futures contracts		75,651				—				33,474,636				2,426,233
Options written		587,843				—				(12,381,672	)			468,116
Short sales		—				—				(1,272,534	)			—
Swap contracts		—				—				18,246,124				—
Foreign currency transactions		1,465,186				—				15,419,596				—
		236,765				298,341				89,447,833				7,518,588
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(17,788,700	)			158,580				(47,092,754	)			(18,071,418	)
Futures contracts		(129,592	)			—				8,917,900				164,008
Options written		(23,635	)			—				5,202,258				—
Short sales		—				—				559,825				—
Swap contracts		—				—				(11,546,798	)			—
Translation of assets and liabilities in foreign currencies		5,961,089				—				1,372,011				—
		(11,980,838	)			158,580				(42,587,558	)			(17,907,410	)
Net realized and unrealized gain (loss)		(11,744,073	)			456,921				46,860,275				(10,388,822	)
Increase (decrease) in net assets from operations	$	15,354,087			$	2,986,910			$	125,520,419				($2,597,081	)

 

382

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	U.S. High Yield Bond			U.S. Multi Sector				Value				Value & Restructuring
Interest	$	36,755,512			$	1,754,690			$	28,403			$	279,838
Dividends		—				26,145,159				304,343				8,829,532
Securities lending		273,666				206,094				—				448,548
Income from affiliated issuers		60,646				42,364				—				103,837
Less foreign taxes withheld		—				—				—				(120,549	)
Total investment income		37,089,824				28,148,307				332,746				9,541,206
Expenses
Investment management fees (Note 4)		3,262,940				10,421,973				138,283				3,957,509
Class 1 distribution and service fees (Note 4)		2,495				—				—				—
Fund administration fees (Note 4)		63,798				216,549				2,550				69,980
Audit and legal fees		48,615				57,476				31,365				49,753
Custodian fees		83,763				218,718				25,719				60,246
Trustees’ fees (Note 5)		4,334				15,178				150				4,776
Registration and filing fees		14,417				25,003				4,294				20,998
Miscellaneous		2,165				8,473				107				3,157
Total expenses		3,482,527				10,963,370				202,468				4,166,419
Less: expense reductions (Note 4)		—				—				(17,472	)			—
Net expenses		3,482,527				10,963,370				184,996				4,166,419
Net investment income (loss)		33,607,297				17,184,937				147,750				5,374,787
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(12,338,501	)			(93,135,683	)			(1,900,897	)			(30,800,276	)
Futures contracts		—				(2,635,481	)			—				—
Options written		—				—				—				69,175
Foreign currency transactions		—				—				—				(21,477	)
		(12,338,501	)			(95,771,164	)			(1,900,897	)			(30,752,578	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(17,383,730	)			(71,690,705	)			(26,909	)			(3,961,403	)
Futures contracts		—				700,585				—				—
Options written		—				—				—				13,625
Translation of assets and liabilities in foreign currencies		—				—				—				(437	)
		(17,383,730	)			(70,990,120	)			(26,909	)			(3,948,215	)
Net realized and unrealized gain (loss)		(29,722,231	)			(166,761,284	)			(1,927,806	)			(34,700,793	)
Increase (decrease) in net assets from operations	$	3,885,066				($149,576,347	)			($1,780,056	)			($29,326,006	)

 

383

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2008

Investment income	Vista
Interest	$	106,200
Dividends		484,571
Securities lending		98,376
Income from affiliated issuers		20,842
Less foreign taxes withheld		(11,120	)
Total investment income		698,869
Expenses
Investment management fees (Note 4)		1,359,705
Fund administration fees (Note 4)		24,277
Audit and legal fees		33,754
Custodian fees		72,935
Trustees’ fees (Note 5)		1,639
Registration and filing fees		7,544
Miscellaneous		2,146
Total expenses		1,502,000
Net investment income (loss)		(803,131	)
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		20,046,658
Foreign currency transactions		(345,951	)
		19,700,707
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		(25,576,867	)
Translation of assets and liabilities in foreign currencies		(9,055	)
		(25,585,922	)
Net realized and unrealized gain (loss)		(5,885,215	)
Increase (decrease) in net assets from operations		($6,688,346	)

 

384

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Absolute Return						Active Bond						All Cap Core
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	152,778		$	125,194		$	29,493,014		$	25,034,762		$	7,416,817		$	4,223,735
Net realized gain (loss)		94,794			154,226			5,847,375			(372,810	)		(66,244,881	)		32,294,842
Change in net unrealized appreciation (depreciation)		(468,046	)		157,664			(31,797,161	)		(3,967,382	)		(17,748,169	)		(2,453,036	)
Increase (decrease) in net assets resulting from operations		(220,474	)		437,084			3,543,228			20,694,570			(76,576,233	)		34,065,541
Distributions to shareholders
From net investment income
Class A		(55,708	)		(18,971	)		—			—			—			—
Class B		(45,722	)		(16,610	)		—			—			—			—
Class C		(45,723	)		(16,611	)		—			—			—			—
Class 1		(59,281	)		(19,810	)		(1,814,384	)		(1,772,251	)		—			—
Class NAV		—			—			(28,839,200	)		(22,468,413	)		(6,486,217	)		(1,050,758	)
From net realized gain
Class A		(42,413	)		(17,280	)		—			—			—			—
Class B		(42,342	)		(17,280	)		—			—			—			—
Class C		(42,342	)		(17,280	)		—			—			—			—
Class 1		(42,437	)		(17,280	)		—			(187	)		—			—
Class NAV		—			—			—			(2,291	)		(26,614,213	)		(235,599	)
Total distributions		(375,968	)		(141,122	)		(30,653,584	)		(24,243,142	)		(33,100,430	)		(1,286,357	)
From Fund share transactions (Note 7)		482,379			141,122			55,374,517			125,592,034			343,669,788			159,859,209
Total increase (decrease)		(114,063	)		437,084			28,264,161			122,043,462			233,993,125			192,638,393
Net assets
Beginning of year		5,642,858			5,205,774			558,598,505			436,555,043			476,661,834			284,023,441
End of year	$	5,528,795		$	5,642,858		$	586,862,666		$	558,598,505		$	710,654,959		$	476,661,834
Undistributed net investment income (loss)	$	50,239		$	103,895		$	4,163,787		$	5,013,545		$	5,142,079		$	4,237,201
	All Cap Growth						All Cap Value						American Diversified Growth & Income
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Period ended 8-31-081
From operations
Net investment income (loss)	$	42,427		$	186,120		$	738,914		$	1,806,232			$	2,362
Net realized gain (loss)		1,580,271			11,056,525			3,762,451			30,041,331				(36		)
Change in net unrealized appreciation (depreciation)		(20,346,613	)		15,635,619			(9,162,486	)		(3,683,407	)			(27,310		)
Increase (decrease) in net assets resulting from operations		(18,723,915	)		26,878,264			(4,661,121	)		28,164,156				(24,984		)
Distributions to shareholders
From net investment income
Class 1		(33,203	)		(18,249	)		(322,363	)		(173,314	)				—
Class NAV		(136,768	)		(90,046	)		(936,959	)		(1,710,968	)				—
From net realized gain
Class 1		(2,158,875	)		—			(8,191,234	)		(581,052	)				—
Class NAV		(6,742,686	)		—			(22,916,850	)		(5,659,491	)
Total distributions		(9,071,532	)		(108,295	)		(32,367,406	)		(8,124,825	)				—
From Fund share transactions (Note 7)		18,131,324			(49,571,589	)		35,349,262			(140,134,472	)			1,002,513
Total increase (decrease)		(9,664,123	)		(22,801,620	)		(1,679,265	)		(120,095,141	)			977,529
Net assets
Beginning of year		132,169,267			154,970,887			96,066,660			216,161,801					—
End of year	$	122,505,144		$	132,169,267		$	94,387,395		$	96,066,660			$	977,529
Undistributed net investment income (loss)	$	40,934		$	169,879		$	540,843		$	1,061,250			$	2,443

 

1          Period from 7-1-08 (commencement of operations) to 8-31-08.

 

385

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	American Fundamental Holdings			American Global Diversification			Blue Chip Growth
	Period ended			Period ended			Period ended
Increase (decrease) in net assets	8-31-081			8-31-081			8-31-081			8-31-07
From operations
Net investment income (loss)	$	3,659		$	3,134		$	5,734,415		$	6,590,934
Net realized gain (loss)		(40)			(51	)		(86,740,230	)		9,284,460
Change in net unrealized appreciation (depreciation)		(25,733	)		(52,309	)		(78,715,503	)		233,357,008
Increase (decrease) in net assets resulting from operations		(22,114	)		(49,226	)		(159,721,318	)		249,232,402
Distributions to shareholders
From net investment income
Class 1		—			—			(766,798	)		(900,395	)
Class NAV		—			—			(6,644,801	)		(5,894,281	)
From net realized gain
Class 1		—			—			(962,777	)		—
Class NAV		—			—			(7,396,503	)		—
Total distributions		—			—			(15,770,879	)		(6,794,676	)
From Fund share transactions (Note 7)		1,001,830			1,001,799			530,669,682			171,225,471
Total increase (decrease)		979,716			952,573			355,177,485			413,663,197
Net assets
Beginning of year		—			—			1,686,513,985			1,272,850,788
End of year	$	979,716		$	952,573		$	2,041,691,470		$	1,686,513,985
Undistributed net investment income (loss)	$	3,740		$	3,214		$	2,720,774		$	4,492,316

 

	Capital Appreciation						Core Bond						Core Equity
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	3,870,347		$	1,884,968		$	12,549,051		$	11,107,637		$	5,292,602		$	367,800
Net realized gain (loss)		(93,206,731	)		(10,045,171	)		3,571,383			(152,241	)		(94,875,437	)		6,942,377
Change in net unrealized appreciation (depreciation)		17,409,818			78,350,830			(1,700,465	)		(393,618	)		(219,063,955	)		60,582,106
Increase (decrease) in net assets resulting from operations		(71,926,566	)		70,190,627			14,419,969			10,561,778			(308,646,790	)		67,892,283
Distributions to shareholders
From net investment income
Class 1		(170,414	)		(80,148	)		(143,652	)		(63,466	)		(7,988	)		(1,945	)
Class NAV		(2,403,139	)		(538,729	)		(12,814,067	)		(10,612,586	)		(982,551	)		(157,412	)
From net realized gain
Class 1		—			—			—			(72	)		(280,748	)		(74,812	)
Class NAV		—			—			—			(11,642	)		(18,725,132	)		(3,571,972	)
Total distributions		(2,573,553	)		(618,877	)		(12,957,719	)		(10,687,766	)		(19,996,419	)		(3,806,141	)
From Fund share transactions (Note 7)		457,104,102			122,166,930			1,432,757			70,689,358			215,908,812			166,093,155
Total increase (decrease)		382,603,983			191,738,680			2,895,007			70,563,370			(112,734,397	)		230,179,297
Net assets
Beginning of year		651,983,549			460,244,869			268,953,166			198,389,796			826,318,748			596,139,451
End of year	$	1,034,587,532		$	651,983,549		$	271,848,173		$	268,953,166		$	713,584,351		$	826,318,748
Undistributed net investment income (loss)	$	3,036,422		$	1,737,321		$	2,245,056		$	2,278,759		$	4,555,251		$	253,596

 

1          Period from 7-1-08 (commencement of operations) to 8-31-08.

 

386

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Emerging Growth						Emerging Markets Value					Emerging Small Company
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Period ended 8-31-071		Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	2,987,143		$	437,546		$	11,006,267		$	2,773,184		($136,089	)		($287,705	)
Net realized gain (loss)		(25,161,142	)		11,888,166			13,439,266			156,756		(9,056,005	)		(289,622	)
Change in net unrealized appreciation (depreciation)		(13,702,311	)		20,337,068			(106,355,012	)		22,530,279		(926,662	)		9,700,508
Increase (decrease) in net assets resulting from operations		(35,876,310	)		32,662,780			(81,909,479	)		25,460,219		(10,118,756	)		9,123,181
Distributions to shareholders
From net investment income
Class 1		(786,768	)		(37,299	)		—			—		—			—
Class NAV		(514,434	)		(23,236	)		(4,245,986	)		—		—			—
From net realized gain
Class 1		(8,348,317	)		(21,422,612	)		—			—		—			(5,121,451	)
Class NAV		(5,073,261	)		(9,721,109	)		(4,524,645	)		—		—			(52,195	)
Total distributions		(14,722,780	)		(31,204,256	)		(8,770,631	)		—		—			(5,173,646	)
From Fund share transactions (Note 7)		(17,261,117	)		25,689,284			185,431,742			457,014,708		29,879,189			(410,218	)
Total increase (decrease)		(67,860,207	)		27,147,808			94,751,632			482,474,927		19,760,433			3,539,317
Net assets
Beginning of year		198,802,495			171,654,687			482,474,927			—		55,358,102			51,818,785
End of year	$	130,942,288		$	198,802,495		$	577,226,559		$	482,474,927	$	75,118,535		$	55,358,102
Undistributed net investment income (loss)	$	2,093,315		$	407,503		$	8,982,960		$	2,194,721		—			—

 

	Equity-Income						Fundamental Value						Global Bond
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	19,849,693		$	14,918,104		$	12,121,435		$	11,231,559		$	34,332,555		$	25,843,040
Net realized gain (loss)		72,569,551			40,689,829			(21,583,098	)		11,666,973			99,578,956			(10,231,708	)
Change in net unrealized appreciation (depreciation)		(208,599,184	)		51,014,519			(157,896,166	)		82,612,038			(58,957,988	)		10,584,251
Increase (decrease) in net assets resulting from operations		(116,179,940	)		106,622,452			(167,357,829	)		105,510,570			74,953,523			26,195,583
Distributions to shareholders
From net investment income
Class 1		(3,363,159	)		(3,114,779	)		(823,974	)		(578,789	)		(2,457,157	)		(1,006,675	)
Class NAV		(13,034,344	)		(9,334,197	)		(11,149,819	)		(6,005,449	)		(38,950,086	)		(14,865,355	)
From net realized gain
Class 1		(9,699,757	)		(8,942,320	)		(723,847	)		(926,324	)		(351,410	)		(458,971	)
Class NAV		(36,512,245	)		(26,628,618	)		(9,327,751	)		(9,485,670	)		(5,770,886	)		(6,707,259	)
Total distributions		(62,609,505	)		(48,019,914	)		(22,025,391	)		(16,996,232	)		(47,529,539	)		(23,038,260	)
From Fund share transactions (Note 7)		191,910,595			146,137,119			765,613,566			180,763,686			(240,431,909	)		198,321,998
Total increase (decrease)		13,121,150			204,739,657			576,230,346			269,278,024			(213,007,925	)		201,479,321
Net assets
Beginning of year		923,536,650			718,796,993			1,030,701,777			761,423,753			796,477,258			594,997,937
End of year	$	936,657,800		$	923,536,650		$	1,606,932,123		$	1,030,701,777		$	583,469,333		$	796,477,258
Undistributed net investment income (loss)	$	14,331,149		$	10,884,168		$	8,749,270		$	8,830,212		$	67,914,018			($14,886,701	)

 

1          Period from 5-1-07 (commencement of operations) to 8-31-07.

 

387

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Global Real Estate						High Income						High Yield
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	10,233,076		$	6,522,961		$	36,487,023		$	22,159,736		$	143,721,892		$	107,639,296
Net realized gain (loss)		(60,742,191	)		26,770,818			390,874			14,928,952			(49,294,944	)		12,658,410
Change in net unrealized appreciation (depreciation)		(88,508,349	)		15,978,364			(103,415,198	)		4,543,691			(132,358,751	)		(51,112,427	)
Increase (decrease) in net assets resulting from operations		(139,017,464	)		49,272,143			(66,537,301	)		41,632,379			(37,931,803	)		69,185,279
Distributions to shareholders
From net investment income
Class 1		—			—			—			—			(4,000,047	)		(3,521,287	)
Class NAV		(15,864,602	)		(15,063,407	)		(32,124,850	)		(21,532,684	)		(135,304,218	)		(97,919,100	)
From net realized gain
Class 1		—			—			—			—			(385,041	)		(299,239	)
Class NAV		(19,979,185	)		—			(17,438,389	)		(586,903	)		(13,137,830	)��		(7,985,838	)
Total distributions		(35,843,787	)		(15,063,407	)		(49,563,239	)		(22,119,587	)		(152,827,136	)		(109,725,464	)
From Fund share transactions (Note 7)		316,900,623			76,048,180			180,497,609			74,502,333			150,797,853			446,667,941
Total increase (decrease)		142,039,372			110,256,916			64,397,069			94,015,125			(39,961,086	)		406,127,756
Net assets
Beginning of year		465,481,394			355,224,478			383,074,360			289,059,235			1,594,223,256			1,188,095,500
End of year	$	607,520,766		$	465,481,394		$	447,471,429		$	383,074,360		$	1,554,262,170		$	1,594,223,256
Undistributed net investment income (loss)		($10,064,073	)		($716,991	)	$	10,300,286		$	4,932,631		$	28,189,658		$	21,976,882

 

	Index 500						International Equity Index						International Opportunities
Increase (decrease) in net assets	Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	9,277,275		$	725,878		$	12,729,797		$	8,375,275		$	11,637,820		$	9,249,579
Net realized gain (loss)		(2,712,965	)		(390,754	)		1,811,913			10,171,764			(19,344,659	)		75,788,455
Change in net unrealized appreciation (depreciation)		(88,002,102	)		1,960,086			(83,204,504	)		54,956,522			(91,757,890	)		47,097,360
Increase (decrease) in net assets resulting from operations		(81,437,792	)		2,295,210			(68,662,794	)		73,503,561			(99,464,729	)		132,135,394
Distributions to shareholders
From net investment income
Class 1		—			—			—			—			(437,162	)		(43,663	)
Class NAV		(1,589,435	)		(112,959	)		(11,320,080	)		(5,954,619	)		(9,599,874	)		(1,902,917	)
From net realized gain
Class 1		—			—			—			—			(4,266,920	)		(166,390	)
Class NAV		(891,159	)		—			(11,293,901	)		(3,701,853	)		(89,874,604	)		(7,030,666	)
Total distributions		(2,480,594	)		(112,959	)		(22,613,981	)		(9,656,472	)		(104,178,560	)		(9,143,636	)
From Fund share transactions (Note 7)		961,007,984			81,296,406			163,669,149			49,526,522			293,056,257			102,540,199
Total increase (decrease)		877,089,598			83,478,657			72,392,374			113,373,611			89,412,969			225,531,957
Net assets
Beginning of year		83,478,657			—			421,132,628			307,759,017			786,692,667			561,160,710
End of year	$	960,568,255		$	83,478,657		$	493,525,002		$	421,132,628		$	876,105,635		$	786,692,667
Undistributed net investment income (loss)	$	8,294,366		$	607,937		$	7,049,015		$	5,397,216		$	8,030,794		$	7,599,987

 

1          Period from 10-27-06 (commencement of operations) to 8-31-07.

 

388

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	International Small Cap						International Small Company						International Value
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	7,484,241		$	5,460,181		$	5,110,208		$	2,750,951		$	45,971,457		$	27,947,775
Net realized gain (loss)		32,515,105			70,643,278			9,408,069			25,641,357			39,194,856			86,511,353
Change in net unrealized appreciation (depreciation)		(146,182,370	)		68,452,908			(94,379,932	)		30,354,093			(356,784,333	)		85,432,616
Increase (decrease) in net assets resulting from operations		(106,183,024	)		144,556,367			(79,861,655	)		58,746,401			(271,618,020	)		199,891,744
Distributions to shareholders
From net investment income
Class 1		(1,899,697	)		(536,023	)		—			—			(8,744,111	)		(3,627,952	)
Class NAV		(11,236,985	)		(5,001,016	)		(3,533,975	)		(1,485,367	)		(22,709,292	)		(21,823,937	)
From net realized gain
Class 1		(9,217,495	)		(5,435,293	)		—			—			(24,440,545	)		(8,785,199	)
Class NAV		(53,605,686	)		(50,204,755	)		(20,201,831	)		—			(60,940,195	)		(52,619,688	)
Total distributions		(75,959,863	)		(61,177,087	)		(23,735,806	)		(1,485,367	)		(116,834,143	)		(86,856,776	)
From Fund share transactions (Note 7)		67,764,421			(22,897,382	)		257,541,409			(27,682,259	)		570,525,682			160,232,397
Total increase (decrease)		(114,378,466	)		60,481,898			153,943,948			29,578,775			182,073,519			273,267,365
Net assets
Beginning of year		456,346,988			395,865,090			250,489,765			220,910,990			1,243,358,476			970,091,111
End of year	$	341,968,522		$	456,346,988		$	404,433,713		$	250,489,765		$	1,425,431,995		$	1,243,358,476
Undistributed net investment income (loss)	$	3,343,840		$	4,486,507		$	3,525,164		$	1,986,284		$	38,789,188		$	25,985,674

 

	Investment Quality Bond						Large Cap						Large Cap Value
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	8,739,054		$	7,050,884		$	4,841,394		$	2,989,602		$	7,116,338		$	4,747,875
Net realized gain (loss)		683,057			(140,345	)		(6,228,049	)		8,712,231			(45,727,621	)		15,845,172
Change in net unrealized appreciation (depreciation)		(1,730,838	)		(627,815	)		(47,381,165	)		10,568,545			(47,559,985	)		32,088,987
Increase (decrease) in net assets resulting from operations		7,691,273			6,282,724			(48,767,820	)		22,270,378			(86,171,268	)		52,682,034
Distributions to shareholders
From net investment income
Class 1		(2,493,124	)		(1,851,280	)		(257,735	)		(23,638	)		(1,088,495	)		(703,700	)
Class NAV		(6,973,371	)		(5,269,636	)		(3,474,434	)		(1,846,623	)		(4,134,688	)		(1,983,171	)
From net realized gain
Class 1		—			(1,386	)		(742,791	)		(69,040	)		(3,182,040	)		—
Class NAV		—			(3,900	)		(9,483,403	)		(5,336,259	)		(11,433,685	)		—
Total distributions		(9,466,495	)		(7,126,202	)		(13,958,363	)		(7,275,560	)		(19,838,908	)		(2,686,871	)
From Fund share transactions (Note 7)		38,325,070			38,524,378			74,322,840			169,341,054			293,840,437			152,588,934
Total increase (decrease)		36,549,848			37,680,900			11,596,657			184,335,872			187,830,261			202,584,097
Net assets
Beginning of year		165,928,335			128,247,435			378,138,934			193,803,062			542,097,866			339,513,769
End of year	$	202,478,183		$	165,928,335		$	389,735,591		$	378,138,934		$	729,928,127		$	542,097,866
Undistributed net investment income (loss)	$	2,073,231		$	1,677,053		$	3,378,128		$	2,269,390		$	5,196,212		$	3,303,162

 

389

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Mid Cap Index						Mid Cap Intersection						Mid Cap Stock
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	3,388,967		$	5,591,364		$	125,241		$	206,283			($762,120	)	$	726,487
Net realized gain (loss)		7,099,900			29,296,263			(45,362,742	)		(5,202,586	)		(28,049,061	)		34,997,514
Change in net unrealized appreciation (depreciation)		(31,460,300	)		20,357,230			10,736,229			(10,639,254	)		(23,481,263	)		48,522,930
Increase (decrease) in net assets resulting from operations		(20,971,433	)		55,244,857			(34,501,272	)		(15,635,557	)		(52,292,444	)		84,246,931
Distributions to shareholders
From net investment income
Class 1		—			—			—			—			—			(386,903	)
Class NAV		(5,261,952	)		(2,132,802	)		(233,067	)		—			(6,183	)		(738,346	)
From net realized gain
Class 1		—			—			—			—			(20,871,703	)		(4,996,167	)
Class NAV		(34,100,080	)		(779,434	)		—			—			(25,672,835	)		(9,258,029	)
Total distributions		(39,362,032	)		(2,912,236	)		(233,067	)		—			(46,550,721	)		(15,379,445	)
From Fund share transactions (Note 7)		(36,175,540	)		203,540,011			(56,990,110	)		349,727,102			323,242,797			132,753,859
Total increase (decrease)		(96,509,005	)		255,872,632			(91,724,449	)		334,091,545			224,399,632			201,621,345
Net assets
Beginning of year		428,028,125			172,155,493			334,091,545			—			502,491,123			300,869,778
End of year	$	331,519,120		$	428,028,125		$	242,367,096		$	334,091,545		$	726,890,755		$	502,491,123
Undistributed net investment income (loss)	$	2,040,126		$	3,994,268		$	100,165		$	206,283			($261	)		($14,538	)

 

	Mid Cap Value						Mid Cap Value Equity						Natural Resources
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	2,548,834		$	1,334,059		$	843,867		$	1,449,256		$	3,514,706		$	5,626,517
Net realized gain (loss)		(13,517,826	)		9,193,183			1,347,500			1,918,374			159,764,997			166,751,529
Change in net unrealized appreciation (depreciation)		(36,145,957	)		9,149,210			(15,636,889	)		16,438,964			(84,031,928	)		53,965,175
Increase (decrease) in net assets resulting from operations		(47,114,949	)		19,676,452			(13,445,522	)		19,806,594			79,247,775			226,343,221
Distributions to shareholders
From net investment income
Class 1		(757,113	)		(712,867	)		—			—			(693,182	)		(688,336	)
Class NAV		(1,367,736	)		(398,819	)		(1,379,541	)		(611,515	)		(3,982,326	)		(7,332,396	)
From net realized gain
Class 1		(5,086,036	)		(3,935,640	)		—			—			(33,008,423	)		(3,211,811	)
Class NAV		(8,587,602	)		(2,164,603	)		(2,670,475	)		—			(173,286,281	)		(33,835,034	)
Total distributions		(15,798,487	)		(7,211,929	)		(4,050,016	)		(611,515	)		(210,970,212	)		(45,067,577	)
From Fund share transactions (Note 7)		(14,490,573	)		121,116,168			(20,937,552	)		11,691,496			(40,086,142	)		(111,652,417	)
Total increase (decrease)		(77,404,009	)		133,580,691			(38,433,090	)		30,886,575			(171,808,579	)		69,623,227
Net assets
Beginning of year		276,765,334			143,184,643			129,010,355			98,123,780			842,567,278			772,944,051
End of year	$	199,361,325		$	276,765,334		$	90,577,265		$	129,010,355		$	670,758,699		$	842,567,278
Undistributed net investment income (loss)	$	1,803,782		$	1,379,904		$	435,483		$	1,004,076		$	2,421,592		$	3,503,500

 

1          Period from 5-1-07 (commencement of operations) to 8-31-07.

 

390

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Optimized All Cap						Real Estate Equity						Real Estate Securities
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	44,067		$	28,794		$	5,481,675		$	6,656,167		$	2,666,345		$	4,366,697
Net realized gain (loss)		(418,754	)		582,314			(7,298,990	)		23,070,101			(4,086,997	)		17,706,597
Change in net unrealized appreciation (depreciation)		(560,552	)		304,309			(24,348,780	)		(20,373,734	)		(9,670,435	)		(14,129,899	)
Increase (decrease) in net assets resulting from operations		(935,239	)		915,417			(26,166,095	)		9,352,534			(11,091,087	)		7,943,395
Distributions to shareholders
From net investment income
Class A		(8,371	)		(6,133	)		—			—			—			—
Class B		(1,413	)		(1,576	)		—			—			—			—
Class C		(1,413	)		(1,576	)		—			—			—			—
Class I		(11,366	)		(8,085	)		—			—			—			—
Class 1		—			—			—			—			(2,208,590	)		(5,703,118	)
Class NAV		—			—			(2,823,624	)		(4,275,003	)		—			—
From net realized gain
Class A		(155,025	)		(1,565	)		—			—			—			—
Class B		(154,525	)		(1,565	)		—			—			—			—
Class C		(154,525	)		(1,565	)		—			—			—			—
Class I		(155,240	)		(1,565	)		—			—			—			—
Class 1		—			—			—			—			(19,854,117	)		(81,051,023	)
Class NAV		—			—			(27,686,897	)		(3,826,821	)		—			—
Total distributions		(641,878	)		(23,630	)		(30,510,521	)		(8,101,824	)		(22,062,707	)		(86,754,141	)
From Fund share transactions (Note 7)		733,204			23,630			66,553,526			(21,676,579	)		846,804			53,065,257
Total increase (decrease)		(843,913	)		915,417			9,876,910			(20,425,869	)		(32,306,990	)		(25,745,489	)
Net assets
Beginning of year		5,970,254			5,054,837			254,468,597			274,894,466			144,816,146			170,561,635
End of year	$	5,126,341		$	5,970,254		$	264,345,507		$	254,468,597		$	112,509,156		$	144,816,146
Undistributed net investment income (loss)	$	39,400		$	22,886		$	2,886,732		$	407,386		$	851,642		$	966,761

 

	Real Return Bond						Small Cap						Small Cap Index
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	40,301,998		$	38,237,478		$	286,215			($401,516	)	$	1,205,814		$	1,482,243
Net realized gain (loss)		88,101,003			(15,766,869	)		(4,627,030	)		18,148,584			545,892			13,089,047
Change in net unrealized appreciation (depreciation)		(6,838,467	)		(2,093,841	)		(17,037,854	)		15,935,147			(5,294,252	)		2,451,794
Increase (decrease) in net assets resulting from operations		121,564,534			20,376,768			(21,378,669	)		33,682,215			(3,542,546	)		17,023,084
Distributions to shareholders
From net investment income
Class 1		(1,297,783	)		(604,013	)		(967	)		—			—			—
Class NAV		(44,378,716	)		(29,695,308	)		(145,148	)		—			(1,373,444	)		(1,034,704	)
From net realized gain
Class 1		—			(49,141	)		(201,462	)		—			—			—
Class NAV		—			(2,118,343	)		(24,090,700	)		—			(13,262,451	)		(3,992,892	)
Total distributions		(45,676,499	)		(32,466,805	)		(24,438,277	)		—			(14,635,895	)		(5,027,596	)
From Fund share transactions (Note 7)		(180,097,919	)		279,768,972			5,136,253			(105,336,693	)		54,173,157			(47,689,663	)
Total increase (decrease)		(104,209,884	)		267,678,935			(40,680,693	)		(71,654,478	)		35,994,716			(35,694,175	)
Net assets
Beginning of year		969,476,341			701,797,406			168,936,761			240,591,239			89,402,263			125,096,438
End of year	$	865,266,457		$	969,476,341		$	128,256,068		$	168,936,761		$	125,396,979		$	89,402,263
Undistributed net investment income (loss)	$	6,118,884		$	14,139,935		$	140,032			—		$	666,572		$	898,736

 

391

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Small Cap Opportunities						Small Company						Small Company Growth
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	2,912,442		$	3,529,722			($144,767	)		($208,657	)		($1,055,834	)		($814,422	)
Net realized gain (loss)		(15,085,950	)		315,979			(9,199,111	)		6,281,718			(9,465,233	)		5,186,594
Change in net unrealized appreciation (depreciation)		(24,787,124	)		11,923,803			(2,470,361	)		4,434,469			(4,348,417	)		9,504,714
Increase (decrease) in net assets resulting from operations		(36,960,632	)		15,769,504			(11,814,239	)		10,507,530			(14,869,484	)		13,876,886
Distributions to shareholders
From net investment income
Class 1		(468,564	)		(419,296	)		—			—			—			—
Class NAV		(2,939,801	)		(2,899,008	)		(1,470	)		—			—			—
From net realized gain
Class 1		(96,019	)		(861,596	)		(318,287	)		—			—			—
Class NAV		(582,069	)		(5,905,883	)		(5,924,062	)		—			(5,101,160	)		(1,393,929	)
Total distributions		(4,086,453	)		(10,085,783	)		(6,243,819	)		—			(5,101,160	)		(1,393,929	)
From Fund share transactions (Note 7)		(64,742,970	)		(24,662,257	)		(15,709,186	)		(5,883,810	)		(19,705,369	)		121,930,345
Total increase (decrease)		(105,790,055	)		(18,978,536	)		(33,767,244	)		4,623,720			(39,676,013	)		134,413,302
Net assets
Beginning of year		228,152,989			247,131,525			98,049,286			93,425,566			208,314,097			73,900,795
End of year	$	122,362,934		$	228,152,989		$	64,282,042		$	98,049,286		$	168,638,084		$	208,314,097
Undistributed net investment income (loss)	$	1,206,817		$	1,720,966			—			—			—			($2	)

 

	Small Company Value						Spectrum Income						Strategic Bond
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	2,692,995		$	1,019,956		$	48,237,025		$	39,873,709		$	31,627,122		$	21,354,359
Net realized gain (loss)		12,998,479			16,732,830			14,223,211			12,628,712			(7,411,128	)		1,325,127
Change in net unrealized appreciation (depreciation)		(10,448,671	)		24,741,259			(42,785,417	)		5,526,452			(43,488,104	)		(14,078,681	)
Increase (decrease) in net assets resulting from operations		5,242,803			42,494,045			19,674,819			58,028,873			(19,272,110	)		8,600,805
Distributions to shareholders
From net investment income
Class 1		(222,418	)		(399,933	)		—			—			(2,551,211	)		(2,346,688	)
Class NAV		(744,875	)		(718,167	)		(49,435,145	)		(37,709,123	)		(27,235,607	)		(17,589,075	)
From net realized gain
Class 1		(5,895,273	)		(2,245,675	)		—			—			—			(38	)
Class NAV		(15,211,967	)		(3,878,230	)		(13,144,565	)		(1,278,570	)		—			(254	)
Total distributions		(22,074,533	)		(7,242,005	)		(62,579,710	)		(38,987,693	)		(29,786,818	)		(19,936,055	)
From Fund share transactions (Note 7)		105,563,520			39,886,714			128,986,711			196,465,949			88,183,979			168,235,858
Total increase (decrease)		88,731,790			75,138,754			86,081,820			215,507,129			39,125,051			156,900,608
Net assets
Beginning of year		463,053,848			387,915,094			979,238,101			763,730,972			468,669,848			311,769,240
End of year	$	551,785,638		$	463,053,848		$	1,065,319,921		$	979,238,101		$	507,794,899		$	468,669,848
Undistributed net investment income (loss)	$	1,527,971		$	345,267		$	14,174,697		$	10,011,334		$	4,216,645		$	3,902,664

 

392

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Strategic Income						Total Bond Market						Total Return
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Period ended 8-31-071			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	27,098,160		$	18,005,428		$	2,529,989		$	2,074,497		$	78,660,144		$	64,684,983
Net realized gain (loss)		236,765			(8,676,496	)		298,341			(55,468	)		89,447,833			(11,771,276	)
Change in net unrealized appreciation (depreciation)		(11,980,838	)		3,652,583			158,580			(220,017	)		(42,587,558	)		3,868,137
Increase (decrease) in net assets resulting from operations		15,354,087			12,981,515			2,986,910			1,799,012			125,520,419			56,781,844
Distributions to shareholders
From net investment income
Class 1		—			—			—			—			(6,614,250	)		(4,700,672	)
Class NAV		(17,879,553	)		(12,664,623	)		(2,693,946	)		(1,721,518	)		(80,286,067	)		(48,061,952	)
From net realized gain
Class 1		—			—			—			—			(495,243	)		(265,340	)
Class NAV		—			—			—			—			(6,450,737	)		(2,548,023	)
Total distributions		(17,879,553	)		(12,664,623	)		(2,693,946	)		(1,721,518	)		(93,846,297	)		(55,575,987	)
From Fund share transactions (Note 7)		43,230,126			141,283,033			5,769,779			53,505,674			281,992,597			365,795,161
Total increase (decrease)		40,704,660			141,599,925			6,062,743			53,583,168			313,666,719			367,001,018
Net assets
Beginning of year		422,693,358			281,093,433			53,583,168			—			1,526,275,710			1,159,274,692
End of year	$	463,398,018		$	422,693,358		$	59,645,911		$	53,583,168		$	1,839,942,429		$	1,526,275,710
Undistributed net investment income (loss)	$	12,731,682		$	2,440,809		$	454,429		$	478,101		$	28,478,791		$	19,045,374

 

	U.S. Government Securities						U.S. High Yield Bond						U.S. Multi Sector
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Year ended 8-31-07
From operations
Net investment income (loss)	$	7,791,741		$	9,566,466		$	33,607,297		$	25,533,837		$	17,184,937		$	17,257,395
Net realized gain (loss)		7,518,588			289,361			(12,338,501	)		531,282			(95,771,164	)		49,614,430
Change in net unrealized appreciation (depreciation)		(17,907,410	)		(2,063,044	)		(17,383,730	)		(8,700,116	)		(70,990,120	)		61,281,932
Increase (decrease) in net assets resulting from operations		(2,597,081	)		7,792,783			3,885,066			17,365,003			(149,576,347	)		128,153,757
Distributions to shareholders
From net investment income
Class 1		(1,815,027	)		(1,928,490	)		(356,799	)		(226,221	)		—			—
Class NAV		(6,587,552	)		(7,809,347	)		(32,343,832	)		(24,325,401	)		(20,111,627	)		(12,350,979	)
From net realized gain
Class 1		—			(59,567	)		(1,227	)		(104	)		—			—
Class NAV		—			(250,357	)		(108,977	)		(12,238	)		(51,023,810	)		(6,470,404	)
Total distributions		(8,402,579	)		(10,047,761	)		(32,810,835	)		(24,563,964	)		(71,135,437	)		(18,821,383	)
From Fund share transactions (Note 7)		14,233,841			(4,472,069	)		161,404,114			113,947,229			(398,563,374	)		187,458,471
Total increase (decrease)		3,234,181			(6,727,047	)		132,478,345			106,748,268			(619,275,158	)		296,790,845
Net assets
Beginning of year		196,837,722			203,564,769			396,761,795			290,013,527			1,523,756,738			1,226,965,893
End of year	$	200,071,903		$	196,837,722		$	529,240,140		$	396,761,795		$	904,481,580		$	1,523,756,738
Undistributed net investment income (loss)	$	1,254,817		$	1,745,178		$	6,381,964		$	5,298,608		$	11,000,977		$	13,928,421

 

1          Period from 10-27-06 (commencement of operations) to 8-31-07.

 

393

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Value						Value & Restructuring						Vista
Increase (decrease) in net assets	Year ended 8-31-08			Year ended 8-31-071			Year ended 8-31-08			Year ended 8-31-07			Year ended 8-31-08			Period ended 8-31-07
From operations
Net investment income (loss)	$	147,750		$	61,963		$	5,374,787		$	5,049,452			($803,131	)		($731,772	)
Net realized gain (loss)		(1,900,897	)		470,887			(30,752,578	)		(13,523	)		19,700,707			11,965,271
Change in net unrealized appreciation (depreciation)		(26,909	)		198,905			(3,948,215	)		52,493,135			(25,585,922	)		34,279,942
Increase (decrease) in net assets resulting from operations		(1,780,056	)		731,755			(29,326,006	)		57,529,064			(6,688,346	)		45,513,441
Distributions to shareholders
From net investment income
Class NAV		(78,757	)		(7,330	)		(6,082,341	)		(3,198,754	)		—			—
From net realized gain
Class NAV		(887,906	)		—			(1,434,023	)		(1,103,470	)		(12,751,169	)		—
Total distributions		(966,663	)		(7,330	)		(7,516,364	)		(4,302,224	)		(12,751,169	)		—
From Fund share transactions (Note 7)		14,699,422			13,205,808			209,779,765			45,537,723			(36,329,850	)		1,457,923
Total increase (decrease)		11,952,703			13,930,233			172,937,395			98,764,563			(55,769,365	)		46,971,364
Net assets
Beginning of year		13,930,233			—			395,259,270			296,494,707			169,581,067			122,609,703
End of year	$	25,882,936		$	13,930,233		$	568,196,665		$	395,259,270		$	113,811,702		$	169,581,067
Undistributed net investment income (loss)	$	123,620		$	54,634		$	3,347,033		$	4,095,499			($367	)		($211,933	)

 

1          Period from 10-27-06 (commencement of operations) to 8-31-07.

 

394

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Absolute Return
CLASS A
8-31-2008	11.03		0.31		(0.68	)	(0.37	)		(0.43	)	(0.33	)	—	(0.76	)	9.90	(3.64	)2,3		1	1.41	4,5	0.52	4,6	2.98	7	45
8-31-2007	10.42		0.28		0.62		0.90			(0.15	)	(0.14	)	—	(0.29	)	11.03	8.72	2,3		1	1.65	4,5	0.55	4	2.55	7	18
8-31-20068	10.00		0.10		0.32		0.42			—		—		—	—		10.42	4.20	2,3,9		1	4.04	4,5,10	0.55	4,10	5.17	7,10	—	9
CLASS B
8-31-2008	10.95		0.24		(0.67	)	(0.43	)		(0.36	)	(0.33	)	—	(0.69	)	9.83	(4.27	)2,3		1	2.11	4,5	1.22	4,6	2.29	7	45
8-31-2007	10.40		0.20		0.63		0.83			(0.14	)	(0.14	)	—	(0.28	)	10.95	7.96	2,3		1	2.34	4,5	1.25	4	1.85	7	18
8-31-20068	10.00		0.08		0.32		0.40			—		—		—	—		10.40	4.00	2,3,9		1	4.73	4,5,10	1.25	4,10	4.48	7,10	—	9
CLASS C
8-31-2008	10.95		0.24		(0.67	)	(0.43	)		(0.36	)	(0.33	)	—	(0.69	)	9.83	(4.27	)2,3		1	2.11	4,5	1.22	4,6	2.28	7	45
8-31-2007	10.40		0.20		0.63		0.83			(0.14	)	(0.14	)	—	(0.28	)	10.95	7.96	2,3		1	2.34	4,5	1.25	4	1.85	7	18
8-31-20068	10.00		0.08		0.32		0.40			—		—		—	—		10.40	4.00	2,3,9		1	4.73	4,5,10	1.25	4,10	4.48	7,10	—	9
CLASS 1
8-31-2008	11.05		0.34		(0.68	)	(0.34	)		(0.46	)	(0.33	)	—	(0.79	)	9.92	(3.38	)2,3		1	1.17	4,5	0.27	4,6	3.22	7	45
8-31-2007	10.42		0.31		0.62		0.93			(0.16	)	(0.14	)	—	(0.30	)	11.05	8.98	2,3		1	1.40	4,5	0.30	4	2.80	7	18
8-31-20068	10.00		0.10		0.32		0.42			—		—		—	—		10.42	4.20	2,3,9		1	3.79	4,5,10	0.30	4,10	5.42	7,10	—	9
Active Bond
CLASS 1
8-31-2008	9.54		0.47		(0.40	)	0.07			(0.49	)	—		—	(0.49	)	9.12	0.72	12		33	0.72		0.72		4.97		133	14
8-31-2007	9.60		0.47		(0.06	)	0.41			(0.47	)	—	13	—	(0.47	)	9.54	4.38	12		36	0.73		0.73		4.92		165	14
8-31-200611	9.61		0.36		(0.11	)	0.25			(0.26	)	—		—	(0.26	)	9.60	2.68	9,12		37	0.79	10	0.79	10	4.27	10	406	9
CLASS NAV
8-31-2008	9.53		0.47		(0.38	)	0.09			(0.50	)	—		—	(0.50	)	9.12	0.88	12		554	0.67		0.67		5.02		133	14
8-31-2007	9.60		0.48		(0.07	)	0.41			(0.48	)	—	13	—	(0.48	)	9.53	4.34	12		523	0.68		0.68		4.99		165	14
8-31-200611	9.58		0.35		(0.06	)	0.29			(0.27	)	—		—	(0.27	)	9.60	3.09	9,12		399	0.70	10	0.70	10	4.30	10	406	9
All Cap Core
CLASS NAV
8-31-2008	11.06		0.11		(1.31	)	(1.20	)		(0.13	)	(0.51	)	—	(0.64	)	9.22	(11.50	)12		711	0.80		0.80		1.14		239
8-31-2007	9.92		0.12		1.06		1.18			(0.03	)	(0.01	)	—	(0.04	)	11.06	11.93	12		477	0.83		0.83		1.12		244
8-31-200615	10.00		0.05		(0.13	)	(0.08	)		—		—		—	—		9.92	(0.80	)9		284	0.84	10	0.84	10	1.42	10	86	9
All Cap Growth
CLASS 1
8-31-2008	19.28		—	13	(2.45	)	(2.45	)		(0.02	)	(1.27	)	—	(1.29	)	15.54	(13.81	)12		28	0.98		0.98		(0.01	)	111
8-31-2007	16.43		0.01		2.85		2.86			(0.01	)	—		—	(0.01	)	19.28	17.41	12		33	0.97		0.97		0.07		102
8-31-200616	15.50		0.01		0.93		0.94			(0.01	)	—		—	(0.01	)	16.43	6.05	9,12		32	1.00	10	1.00	10	0.08	10	106	9
CLASS NAV
8-31-2008	19.31		0.01		(2.45	)	(2.44	)		(0.03	)	(1.27	)	—	(1.30	)	15.57	(13.76	)12		95	0.93		0.93		0.05		111
8-31-2007	16.45		0.02		2.85		2.87			(0.01	)	—		—	(0.01	)	19.31	17.46	12		99	0.92		0.92		0.13		102
8-31-200616	15.51		0.02		0.93		0.95			(0.01	)	—		—	(0.01	)	16.45	6.11	9,12		123	0.95	10	0.95	10	0.14	10	106	9

 

1	Based on the average of the shares outstanding.
2	Assumes dividend reinvestment and does not reflect the effect of sales charges for Class A, Class B and Class C shares.
3	Total returns would have been lower had certain expenses not been reduced during the periods shown.
4	Does not include expenses of the underlying affiliated funds in which the Portfolio invests.

395

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

5	Does not take into consideration expense reductions during the periods shown.
6	Ratios 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 Portfolios was as follows:

 

Fund	Range
Absolute Return	0.70% – 1.10%

7	Recognition 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.
8	Class A, Class B, Class C and Class 1 shares began operations on 6-26-06.
9	Not annualized.
10	Annualized.
11	Class 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively.
12	Assumes dividend reinvestment.
13	Less than $0.01 per share.
14	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

Fund	8/31/2008			8/31/2007
Active Bond		255	%	299%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
15	Class NAV shares began operations on 4-28-06.
16	Class 1 and Class NAV shares began operations on 10-15-05.

 

396

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
All Cap Value
CLASS 1
8-31-2008	17.26		0.09		(0.50	)	(0.41	)		(0.21	)	(5.45	)	—	(5.66	)	11.19	(4.62	)5		25	0.97		0.97		0.73		76
8-31-2007	15.84		0.14		1.82		1.96			(0.12	)	(0.42	)	—	(0.54	)	17.26	12.64	5		26	0.97		0.97		0.82		82
8-31-20062	13.84		0.11		1.91		2.02			(0.02	)	—		—	(0.02	)	15.84	14.64	3,5,6		21	0.94	4	0.94	4	0.80	4	48	3
CLASS NAV
8-31-2008	17.21		0.10		(0.50	)	(0.40	)		(0.22	)	(5.45	)	—	(5.67	)	11.14	(4.57	)5		69	0.92		0.92		0.78		76
8-31-2007	15.80		0.15		1.81		1.96			(0.13	)	(0.42	)	—	(0.55	)	17.21	12.62	5		70	0.88		0.88		0.93		82
8-31-20062	13.80		0.12		1.91		2.03			(0.03	)	—		—	(0.03	)	15.80	14.69	3,5,6		195	0.89	4	0.89	4	0.88	4	48	3
American Diversified Growth & Income
CLASS 1
8-31-20087	10.00		0.02	8	(0.27	)	(0.25	)		—		—		—	—		9.75	(2.50	)3		1	15.51	4,9	0.08	4,9,10	1.43	4,8	—	3,11
American Fundamental Holdings
CLASS 1
8-31-20087	10.00		0.04	8	(0.26	)	(0.22	)		—		—		—	—		9.78	(2.20	)3		1	15.48	4,9	0.08	4,9,10	2.21	4,8	—	3,11
American Global Diversification
CLASS 1
8-31-20087	10.00		0.03	8	(0.52	)	(0.49	)		—		—		—	—		9.51	(4.90	)3		1	15.70	4,9	0.08	4,9,10	1.92	4,8	—	3,11

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	The Adviser /Subadviser voluntarily paid Class 1 and Class NAV $46,991 and $410,290, respectively, for a potential lost investment opportunity. Excluding these payments, the total return would have been 14.38% for Class 1 and 14.45% for Class NAV.
7	Class 1 shares began operations on 7-1-08.
8	Recognition 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.
9	Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
10	Ratios 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 Portfolios was as follows:

 

Fund	Range
American Diversified Growth & Income	0.32% – 0.71%
American Fundamental Holdings	0.32% – 0.50%
American Global Diversification	0.33% – 0.71%

 

11          Less than 1%.

397

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)			Portfolio turnover (%)
Blue Chip Growth
CLASS 1
8-31-2008	20.98		0.05		(1.78	)	(1.73	)		(0.08	)	(0.10	)	—	(0.18	)	19.07	(8.35	)5,6		192	0.89	7	0.86		0.26			44
8-31-2007	17.82		0.08	8	3.17		3.25			(0.09	)	—		—	(0.09	)	20.98	18.28	5,6		204	0.89	7	0.86		0.39	8		33
8-31-20062	16.53		0.08		1.22		1.30			(0.01	)	—		—	(0.01	)	17.82	7.88	3,5,6		185	0.90	4,7	0.88	4	0.51	4		28	3
CLASS NAV
8-31-2008	20.97		0.06		(1.78	)	(1.72	)		(0.09	)	(0.10	)	—	(0.19	)	19.06	(8.31	)5,6		1,850	0.84	7	0.81		0.29			44
8-31-2007	17.80		0.09	8	3.17		3.26			(0.09	)	—		—	(0.09	)	20.97	18.37	5,6		1,483	0.84	7	0.81		0.44	8		33
8-31-20062	16.51		0.09		1.22		1.31			(0.02	)	—		—	(0.02	)	17.80	7.90	3,5,6		1,088	0.85	,4,7	0.83	4	0.58	4		28	3
Capital Appreciation
CLASS 1
8-31-2008	10.79		0.04		(0.66	)	(0.62	)		(0.03	)	—		—	(0.03	)	10.14	(5.80	)6		61	0.80		0.80		0.34			85
8-31-2007	9.44		0.03		1.33		1.36			(0.01	)	—		—	(0.01	)	10.79	14.43	6		66	0.81		0.81		0.27			63
8-31-20062	9.20		0.01		0.23		0.24			—		—		—	—		9.44	2.61	3		68	0.88	4	0.88	4	0.10	4	��	57	3
CLASS NAV
8-31-2008	10.80		0.04		(0.65	)	(0.61	)		(0.03	)	—		—	(0.03	)	10.16	(5.65	)6		973	0.75		0.75		0.41			85
8-31-2007	9.45		0.04		1.32		1.36			(0.01	)	—		—	(0.01	)	10.80	14.42	6		586	0.76		0.76		0.34			63
8-31-20062	9.20		0.01		0.24		0.25			—		—		—	—		9.45	2.72	3		393	0.83	4	0.83	4	0.15	4		57	3
Core Bond
CLASS 1
8-31-2008	12.51		0.56		0.11		0.67			(0.59	)	—		—	(0.59	)	12.59	5.43	6		4	0.80		0.80		4.46			395	10
8-31-2007	12.52		0.58		(0.02	)	0.56			(0.57	)	—	9	—	(0.57	)	12.51	4.60	6		2	0.82		0.82		4.67			313	10
8-31-20062	12.51		0.47		(0.12	)	0.35			(0.34	)	—		—	(0.34	)	12.52	2.86	3,6		1	0.88	4	0.88	4	4.39	4		436	3
CLASS NAV
8-31-2008	12.50		0.57		0.10		0.67			(0.59	)	—		—	(0.59	)	12.58	5.49	6		267	0.75		0.75		4.51			395	10
8-31-2007	12.51		0.59		(0.02	)	0.57			(0.58	)	—	9	—	(0.58	)	12.50	4.67	6		267	0.77		0.77		4.71			313	10
8-31-20062	12.50		0.46		(0.11	)	0.35			(0.34	)	—		—	(0.34	)	12.51	2.90	3,6		197	0.83	4	0.83	4	4.24	4		436	3
Core Equity
CLASS 1
8-31-2008	15.87		0.07		(4.89	)	(4.82	)		(0.01	)	(0.33	)	—	(0.34	)	10.71	(31.01	)6		8	0.86		0.86		0.55			44
8-31-2007	14.25		—	9	1.71		1.71			—	9	(0.09	)	—	(0.09	)	15.87	11.99	6		14	0.86		0.86		—	11		12
8-31-20062	13.76		(0.01	)	0.50		0.49			—		—		—	—		14.25	3.56	3,6		12	0.88	4	0.88	4	(0.04	)4		13	3
CLASS NAV
8-31-2008	15.89		0.08		(4.89	)	(4.81	)		(0.02	)	(0.33	)	—	(0.35	)	10.73	(30.94	)6		705	0.81		0.81		0.63			44
8-31-2007	14.27		0.01		1.70		1.71			—	9	(0.09	)	—	(0.09	)	15.89	11.99	6		812	0.81		0.81		0.05			12
8-31-20062	13.77		—	9	0.50		0.50			—		—		—	—		14.27	3.63	3,6		584	0.83	4	0.83	4	(0.01	)4		13	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Total returns would have been lower had certain expenses not been reduced during the periods shown.
6	Assumes dividend reinvestment.
7	Does not take into consideration expense reductions during the periods shown.

398

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

8          Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund which amounted to the following amounts:

 

	Per share		Percentage of average net assets
Class 1	$	0.04		0.18	%
Class NAV	$	0.04		0.18	%

 

9	Less than $0.01 per share.
10	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

 

Fund	8/31/2008			8/31/2007
Core Bond		807	%	623%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
11	Less than 0.01%.

 

399

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)		Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Emerging Growth
CLASS 1
8-31-2008	18.18		0.28		(3.30	)	(3.02	)		(0.11	)	(1.21	)	—	(1.32	)	13.84	(17.64	)2		95		0.90		0.90		1.86		56
8-31-2007	18.34		0.04		3.15		3.19			(0.01	)	(3.34	)	—	(3.35	)	18.18	19.20	2		128		0.88		0.88		0.21		44
8-31-20063	16.35		(0.04	)	2.03		1.99			—		—		—	—		18.34	12.17	4		120		0.98	5	0.98	5	(0.26	)5	206	4
CLASS NAV
8-31-2008	18.19		0.27		(3.29	)	(3.02	)		(0.12	)	(1.21	)	—	(1.33	)	13.84	(17.65	)2		36		0.85		0.85		1.80		56
8-31-2007	18.34		0.05		3.15		3.20			(0.01	)	(3.34	)	—	(3.35	)	18.19	19.27	2		71		0.83		0.83		0.28		44
8-31-20063	16.35		(0.03	)	2.02		1.99			—		—		—	—		18.34	12.17	4		51		0.93	5	0.93	5	(0.20	)5	206	4
Emerging Markets Value
CLASS NAV
8-31-2008	11.02		0.24		(1.59	)	(1.35	)		(0.10	)	(0.10	)	—	(0.20	)	9.47	(12.61	)2		577		1.08		1.08		2.11		13
8-31-20076	10.00		0.08		0.94		1.02			—		—		—	—		11.02	10.20	4		482		1.10	5	1.10	5	2.14	5	2	4
Emerging Small Company
CLASS 1
8-31-2008	31.14		(0.07	)	(4.64	)	(4.71	)		—		—		—	—		26.43	(15.13	)8		37		1.13	9	1.12		(0.23	)	115
8-31-2007	28.97		(0.17	)	5.39		5.22			—		(3.05	)	—	(3.05	)	31.14	19.30	2,8		48		1.07	9	1.07		(0.56	)	88
8-31-20067	28.17		(0.16	)	0.96		0.80			—		—		—	—		28.97	2.84	4,8		52		1.30	5,9	1.13	5	(0.57	)5	207	4
CLASS NAV
8-31-2008	31.15		(0.05	)	(4.64	)	(4.69	)		—		—		—	—		26.46	(15.06	)8		38		1.08	9	1.07		(0.17	)	115
8-31-2007	28.97		(0.13	)	5.36		5.23			—		(3.05	)	—	(3.05	)	31.15	19.34	2,8		7		1.02	9	1.02		(0.42	)	88
8-31-20067	29.40		(0.04	)	(0.39	)	(0.43	)		—		—		—	—		28.97	(1.46	)4,8		—	10	1.76	5,9	1.08	5	(0.71	)5	207	4
Equity-Income
CLASS 1
8-31-2008	19.52		0.36		(2.52	)	(2.16	)		(0.32	)	(0.93	)	—	(1.25	)	16.11	(11.83	)2,8		163		0.89	9	0.86		2.06		30
8-31-2007	18.13		0.33		2.22		2.55			(0.30	)	(0.86	)	—	(1.16	)	19.52	14.37	2,8		212		0.89	9	0.86		1.70		20
8-31-20063	16.03		0.26		1.90		2.16			(0.06	)	—		—	(0.06	)	18.13	13.52	2,4,8		183		0.90	5,9	0.89	5	1.68	5	39	4
CLASS NAV
8-31-2008	19.51		0.37		(2.52	)	(2.15	)		(0.33	)	(0.93	)	—	(1.26	)	16.10	(11.79	)2,8		774		0.84	9	0.81		2.14		30
8-31-2007	18.11		0.34		2.22		2.56			(0.30	)	(0.86	)	—	(1.16	)	19.51	14.46	2,8		711		0.84	9	0.81		1.75		20
8-31-20063	16.01		0.27		1.89		2.16			(0.06	)	—		—	(0.06	)	18.11	13.54	2,4,8		535		0.85	5,9	0.84	5	1.75	5	39	4

 

1	Based on the average of the shares outstanding.
2	Assumes dividend reinvestment.
3	Class 1 and Class NAV shares began operations on 10-15-05.
4	Not annualized.
5	Annualized.
6	Class NAV shares began operations on 5-1-07.
7	Class 1 and Class NAV shares began operations on 10-15-05 and 6-26-06, respectively.
8	Total returns would have been lower had certain expenses not been reduced during the periods shown.
9	Does not take into consideration expense reductions during the periods shown.
10	Less than $500,000.

 

400

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Fundamental Value
CLASS 1
8-31-2008	17.58		0.15		(2.04	)	(1.89	)		(0.17	)	(0.15	)	—	(0.32	)	15.37	(10.97	)5		74	0.85		0.85		0.88		14
8-31-2007	15.86		0.20		1.86		2.06			(0.13	)	(0.21	)	—	(0.34	)	17.58	13.02	5		85	0.85		0.85		1.15		6
8-31-20062	14.34		0.13		1.42		1.55			(0.03	)	—		—	(0.03	)	15.86	10.83	3,5		67	0.86	4	0.86	4	0.93	4	8	3
CLASS NAV
8-31-2008	17.56		0.15		(2.03	)	(1.88	)		(0.18	)	(0.15	)	—	(0.33	)	15.35	(10.93	)5		1,533	0.80		0.80		0.93		14
8-31-2007	15.83		0.21		1.86		2.07			(0.13	)	(0.21	)	—	(0.34	)	17.56	13.12	5		946	0.80		0.80		1.21		6
8-31-20062	14.31		0.13		1.42		1.55			(0.03	)	—		—	(0.03	)	15.83	10.87	3,5		695	0.81	4	0.81	4	1.00	4	8	3
Global Bond
CLASS 1
8-31-2008	14.81		0.67		0.47		1.14			(0.78	)	(0.12	)	—	(0.90	)	15.05	7.73	5		74	0.88		0.88		4.28		975	6
8-31-2007	14.83		0.53		(0.04	)7	0.49			(0.35	)	(0.16	)	—	(0.51	)	14.81	3.40	5		42	0.86	8	0.86	8	3.64		272	6
8-31-20062	14.56		0.44		(0.08	)7	0.36			(0.09	)	—		—	(0.09	)	14.83	2.46	3,5		41	0.84	4	0.84	4	3.42	4	248	3
CLASS NAV
8-31-2008	14.78		0.68		0.47		1.15			(0.79	)	(0.12	)	—	(0.91	)	15.02	7.81	5		509	0.83		0.83		4.37		975	6
8-31-2007	14.79		0.54		(0.03	)7	0.51			(0.36	)	(0.16	)	—	(0.52	)	14.78	3.51	5		754	0.81	8	0.81	8	3.68		272	6
8-31-20062	14.52		0.45		(0.09	)7	0.36			(0.09	)	—		—	(0.09	)	14.79	2.48	3,5		554	0.79	4	0.79	4	3.56	4	248	3
Global Real Estate
CLASS NAV
8-31-2008	11.37		0.18		(2.60	)	(2.42	)		(0.35	)	(0.45	)	—	(0.80	)	8.15	(22.75	)5		608	1.07		1.07		1.95		68
8-31-2007	10.30		0.18		1.34		1.52			(0.45	)	—		—	(0.45	)	11.37	14.70	5		465	1.08		1.08		1.54		97
8-31-20069	10.00		0.06		0.24		0.30			—		—		—	—		10.30	3.00	3		355	1.09	4	1.09	4	1.65	4	87	3
High Income
CLASS NAV
8-31-2008	10.61		0.79		(2.24	)	(1.45	)		(0.74	)	(0.44	)	—	(1.18	)	7.98	(14.76	)5		447	0.72		0.72		8.80		53
8-31-2007	9.87		0.69	��	0.76		1.45			(0.69	)	(0.02	)	—	(0.71	)	10.61	14.81	5		383	0.73		0.73		6.38		67
8-31-20069	10.00		0.23		(0.25	)	(0.02	)		(0.11	)	—		—	(0.11	)	9.87	(0.14	)3,5		289	0.77	4	0.77	4	6.73	4	76	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

 

Fund	8/31/2008			8/31/2007
Global Bond		1,190	%		914	%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
7	The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund.
8	Includes interest and fees on inverse floaters. Excluding this expense the ratio for Class 1 and Class NAV would have been 0.86% and 0.81,respectively.
9	Class NAV shares began operations on 4-28-06.

 

401

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																			Ratios and supplemental data
		Income (loss) from investment operations						Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1	Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
High Yield
CLASS 1
8-31-2008	9.92		0.84	(1.04	)	(0.20	)		(0.83	)	(0.08	)	—	(0.91	)	8.81	(2.33	)5		43	0.75		0.75		8.98		59
8-31-2007	10.12		0.77	(0.17	)	0.60			(0.74	)	(0.06	)	—	(0.80	)	9.92	6.02	5		48	0.75		0.75		7.48		77	6
8-31-20062	10.10		0.65	(0.03	)	0.62			(0.60	)	—		—	(0.60	)	10.12	6.41	3,5		44	0.76	4	0.76	4	7.22	4	83	3
CLASS NAV
8-31-2008	9.87		0.84	(1.03	)	(0.19	)		(0.83	)	(0.08	)	—	(0.91	)	8.77	(2.18	)5		1,511	0.70		0.70		9.04		59
8-31-2007	10.08		0.77	(0.17	)	0.60			(0.75	)	(0.06	)	—	(0.81	)	9.87	6.00	5		1,547	0.70		0.70		7.55		77	6
8-31-20062	10.06		0.66	(0.03	)	0.63			(0.61	)	—		—	(0.61	)	10.08	6.49	3,5		1,144	0.71	4	0.71	4	7.36	4	83	3
Index 500
CLASS NAV
8-31-2008	10.80		0.17	(1.42	)	(1.25	)		(0.05	)	(0.03	)	—	(0.08	)	9.47	(11.69	)5		961	0.49		0.49		1.71		2
8-31-20077	10.00		0.17	0.67		0.84			(0.04	)	—		—	(0.04	)	10.80	8.41	3,5,8		83	0.58	4,9	0.51	4	1.93	4	3	3
International Equity Index
CLASS NAV
8-31-2008	22.51		0.57	(3.39	)	(2.82	)		(0.58	)	(0.58	)	—	(1.16	)	18.53	(13.58	)5		494	0.56		0.56		2.68		10
8-31-2007	18.97		0.47	3.64		4.11			(0.35	)	(0.22	)	—	(0.57	)	22.51	21.97	5		421	0.56		0.56		2.23		15
8-31-200610	15.59		0.41	3.17		3.58			(0.20	)	—		—	(0.20	)	18.97	23.16	3,5		308	0.58	4	0.58	4	2.78	4	11	3
International Opportunities
CLASS 1
8-31-2008	19.32		0.24	(1.67	)	(1.43	)		(0.25	)	(2.48	)	—	(2.73	)	15.16	(10.51	)5		32	1.04		1.04		1.36		111
8-31-2007	16.13		0.25	3.19		3.44			(0.05	)	(0.20	)	—	(0.25	)	19.32	21.48	5		23	1.04		1.04		1.40		127
8-31-20062	13.71		0.11	3.01		3.12			(0.70	)	—		—	(0.70	)	16.13	23.36	3,5,11		9	1.07	4	1.07	4	0.78	4	99	3
CLASS NAV
8-31-2008	19.36		0.25	(1.68	)	(1.43	)		(0.26	)	(2.48	)	—	(2.74	)	15.19	(10.50	)5		844	0.99		0.99		1.38		111
8-31-2007	16.16		0.24	3.21		3.45			(0.05	)	(0.20	)	—	(0.25	)	19.36	21.51	5		764	0.99		0.99		1.34		127
8-31-20062	13.72		0.10	3.04		3.14			(0.70	)	—		—	(0.70	)	16.16	23.51	3,5,11		552	1.02	4	1.02	4	0.73	4	99	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

 

Fund	8/31/2007
High Yield		80	%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
7	Class NAV shares began operations on 10-27-06.
8	Total returns would have been lower had certain expenses not been reduced during the periods shown.
9	Does not take into consideration expense reductions during the periods shown.
10	Class NAV shares began operations on 10-29-05.
11	The Adviser/Subadviser voluntarily reimbursed Class 1 and Class NAV $11,316 and $3,937,220, respectively, for a potential lost investment opportunity. Excluding these reimbursements, the total return would have been 23.19% for Class 1 and 22.62% for Class NAV.

 

402

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																			Ratios and supplemental data
		Income (loss) from investment operations						Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1	Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
International Small Cap
CLASS 1
8-31-2008	24.53		0.31	(5.42	)	(5.11	)		(0.63	)	(3.08	)	—	(3.71	)	15.71	(23.67	)5		47	1.18		1.18		1.61		29
8-31-2007	20.95		0.28	6.44		6.72			(0.28	)	(2.86	)	—	(3.14	)	24.53	34.99	5		81	1.16		1.16		1.24		26
8-31-20062	18.48		0.27	2.24		2.51			(0.04	)	—		—	(0.04	)	20.95	13.58	3,5		37	1.18	4	1.18	4	1.55	4	89	3
CLASS NAV
8-31-2008	24.53		0.34	(5.42	)	(5.08	)		(0.65	)	(3.08	)	—	(3.73	)	15.72	(23.58	)5		295	1.13		1.13		1.79		29
8-31-2007	20.95		0.26	6.46		6.72			(0.28	)	(2.86	)	—	(3.14	)	24.53	35.01	5		376	1.11		1.11		1.16		26
8-31-20062	18.45		0.25	2.29		2.54			(0.04	)	—		—	(0.04	)	20.95	13.80	3,5		359	1.13	4	1.13	4	1.43	4	89	3
International Small Company
CLASS NAV
8-31-2008	11.53		0.16	(2.19	)	(2.03	)		(0.15	)	(0.86	)	—	(1.01	)	8.49	(19.32	)5		404	1.10		1.10		1.66		11
8-31-2007	9.33		0.12	2.14		2.26			(0.06	)	—		—	(0.06	)	11.53	24.30	5		250	1.11		1.11		1.06		32
8-31-20066	10.00		0.04	(0.71	)	(0.67	)		—		—		—	—		9.33	(6.70	)3		221	1.14	4	1.14	4	1.37	4	57	3
International Value
CLASS 1
8-31-2008	19.73		0.55	(3.25	)	(2.70	)		(0.36	)	(0.99	)	—	(1.35	)	15.68	(15.08	)5,7		372	0.99	8	0.98		3.07		21
8-31-2007	17.91		0.45	2.93		3.38			(0.46	)	(1.10	)	—	(1.56	)	19.73	19.45	5,7		162	1.00	8	0.98		2.32		24
8-31-20062	15.20		0.46	2.30		2.76			(0.05	)	—		—	(0.05	)	17.91	18.22	3,5,7		134	1.01	4,8	0.99	4	3.17	4	59	3
CLASS NAV
8-31-2008	19.70		0.53	(3.23	)	(2.70	)		(0.37	)	(0.99	)	—	(1.36	)	15.64	(15.09	)5,7		1,053	0.94	8	0.92		2.94		21
8-31-2007	17.88		0.47	2.91		3.38			(0.46	)	(1.10	)	—	(1.56	)	19.70	19.50	5,7		1,081	0.95	8	0.93		2.42		24
8-31-20062	15.16		0.47	2.30		2.77			(0.05	)	—		—	(0.05	)	17.88	18.35	3,5,7		836	0.96	4,8	0.94	4	3.21	4	59	3
Investment Quality Bond
CLASS 1
8-31-2008	11.70		0.54	(0.02	)	0.52			(0.60	)	—		—	(0.60	)	11.62	4.52	5		54	0.76		0.76		4.61		81
8-31-2007	11.76		0.56	(0.04	)	0.52			(0.58	)	—	9	—	(0.58	)	11.70	4.49	5		43	0.78		0.78		4.77		37
8-31-20062	11.84		0.46	(0.16	)	0.30			(0.38	)	—		—	(0.38	)	11.76	2.64	3,5		35	0.84	4	0.84	4	4.42	4	35	3
CLASS NAV
8-31-2008	11.69		0.55	(0.02	)	0.53			(0.61	)	—		—	(0.61	)	11.61	4.57	5		149	0.71		0.71		4.66		81
8-31-2007	11.75		0.56	(0.04	)	0.52			(0.58	)	—	9	—	(0.58	)	11.69	4.56	5		123	0.73		0.73		4.83		37
8-31-20062	11.83		0.46	(0.16	)	0.30			(0.38	)	—		—	(0.38	)	11.75	2.68	3,5		93	0.79	4	0.79	4	4.51	4	35	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	Class NAV shares began operations on 4-28-06.
7	Total returns would have been lower had certain expenses not been reduced during the periods shown.
8	Does not take into consideration expense reductions during the periods shown.
9	Less than $0.01 per share.

 

403

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Large Cap
CLASS 1
8-31-2008	16.12		0.18		(2.06	)	(1.88	)		(0.14	)	(0.41	)	—	(0.55	)	13.69	(12.04	)5		26	0.80		0.80		1.20		55
8-31-2007	14.67		0.19		1.78		1.97			(0.13	)	(0.39	)	—	(0.52	)	16.12	13.59	5		31	0.81		0.81		1.15		29
8-31-20062	13.26		0.11		1.31		1.42			(0.01	)	—		—	(0.01	)	14.67	10.73	3,5		2	0.93	4	0.93	4	0.86	4	24	3
CLASS NAV
8-31-2008	16.13		0.18		(2.05	)	(1.87	)		(0.15	)	(0.41	)	—	(0.56	)	13.70	(11.99	)5		363	0.75		0.75		1.26		55
8-31-2007	14.67		0.18		1.80		1.98			(0.13	)	(0.39	)	—	(0.52	)	16.13	13.67	5		348	0.76		0.76		1.11		29
8-31-20062	13.26		0.12		1.31		1.43			(0.02	)	—		—	(0.02	)	14.67	10.79	3,5		192	0.88	4	0.88	4	0.95	4	24	3
Large Cap Value
CLASS 1
8-31-2008	25.90		0.26		(3.30	)	(3.04	)		(0.22	)	(0.65	)	—	(0.87	)	21.99	(12.16	)5		109	0.88		0.88		1.08		62
8-31-2007	22.97		0.24		2.83		3.07			(0.14	)	—		—	(0.14	)	25.90	13.39	5		130	0.91		0.91		0.96		63
8-31-20062	20.31		0.23		2.48		2.71			(0.05	)	—		—	(0.05	)	22.97	13.33	3,5		105	0.98	4	0.98	4	1.24	4	54	3
CLASS NAV
8-31-2008	25.95		0.28		(3.31	)	(3.03	)		(0.24	)	(0.65	)	—	(0.89	)	22.03	(12.13	)5		621	0.83		0.83		1.18		62
8-31-2007	23.01		0.26		2.82		3.08			(0.14	)	—		—	(0.14	)	25.95	13.42	5		412	0.86		0.86		1.00		63
8-31-20062	20.33		0.17		2.56		2.73			(0.05	)	—		—	(0.05	)	23.01	13.43	3,5		234	0.89	4	0.89	4	0.89	4	54	3
Mid Cap Index
CLASS NAV
8-31-2008	21.18		0.18		(1.05	)	(0.87	)		(0.26	)	(1.68	)	—	(1.94	)	18.37	(4.61	)5		332	0.49		0.49		0.93		48
8-31-2007	18.37		0.27	7	2.65		2.92			(0.08	)	(0.03	)	—	(0.11	)	21.18	15.93	5		428	0.51		0.51		1.32	7	64
8-31-20066	16.85		0.17		1.38		1.55			(0.03	)	—		—	(0.03	)	18.37	9.20	3,5,8		172	0.56	4,9	0.56	4	1.14	4	10	3
Mid Cap Intersection
CLASS NAV
8-31-2008	9.59		—	11	(1.02	)	(1.02	)		(0.01	)	—		—	(0.01	)	8.56	(10.68	)5		242	0.91		0.91		0.04		82
8-31-200710	10.00		0.01		(0.42	)	(0.41	)		—		—		—	—		9.59	(4.10	)3		334	0.94	4	0.94	4	0.19	4	59	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	Class NAV shares began operations on 10-29-05.
7	Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund which amounted to the following amounts:

 

	Per share		Percentage of average net assets
Class NAV	$	0.06		0.28	%

 

8	Total returns would have been lower had certain expenses not been reduced during the periods shown.
9	Does not take into consideration expense reductions during the periods shown.
10	Class NAV shares began operations on 5-1-07.
11	Less than $0.01 per share.

 

404

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Mid Cap Stock
CLASS 1
8-31-2008	19.00		(0.03	)	(0.74	)	(0.77	)		—		(1.33	)	—	(1.33	)	16.90	(4.91	)5		379	0.93		0.93		(0.16	)	125
8-31-2007	15.81		0.03	6	3.96		3.99			(0.06	)	(0.74	)	—	(0.80	)	19.00	25.91	5		136	0.93		0.93		0.18	6	114
8-31-20062	13.86		(0.04	)	2.01		1.97			—		(0.02	)	—	(0.02	)	15.81	14.20	3,5,7		107	0.96	4	0.96	4	(0.30	)4	104	3
CLASS NAV
8-31-2008	19.03		(0.01	)	(0.76	)	(0.77	)		—	8	(1.33	)	—	(1.33	)	16.93	(4.90	)5		348	0.88		0.88		(0.08	)	125
8-31-2007	15.83		0.03	6	3.97		4.00			(0.06	)	(0.74	)	—	(0.80	)	19.03	25.95	5		366	0.88		0.88		0.19	6	114
8-31-20062	13.87		(0.04	)	2.02		1.98			—		(0.02	)	—	(0.02	)	15.83	14.27	3,5,7		194	0.91	4	0.91	4	(0.26	)4	104	3
Mid Cap Value
8-31-2008	21.05		0.18		(3.60	)	(3.42	)		(0.15	)	(0.98	)	—	(1.13	)	16.50	(17.03	)5		83	0.96		0.96		1.00		36
8-31-2007	18.87		0.13		2.98		3.11			(0.14	)	(0.79	)	—	(0.93	)	21.05	16.76	5		113	0.96		0.96		0.63		33
8-31-20062	17.65		0.11		1.15		1.26			(0.03	)	(0.01	)	—	(0.04	)	18.87	7.11	3,5		93	0.97	4	0.97	4	0.63	4	74	3
CLASS NAV
8-31-2008	21.05		0.19		(3.60	)	(3.41	)		(0.16	)	(0.98	)	—	(1.14	)	16.50	(16.99	)5		116	0.91		0.91		1.05		36
8-31-2007	18.86		0.15		2.98		3.13			(0.15	)	(0.79	)	—	(0.94	)	21.05	16.83	5		163	0.91		0.91		0.69		33
8-31-20062	17.63		0.12		1.15		1.27			(0.03	)	(0.01	)	—	(0.04	)	18.86	7.18	3,5		50	0.92	4	0.92	4	0.70	4	74	3
Mid Cap Value Equity
CLASS NAV
8-31-2008	11.42		0.07		(1.31	)	(1.24	)		(0.11	)	(0.21	)	—	(0.32	)	9.86	(11.17	)5		91	0.97		0.97		0.69		53
8-31-2007	9.65		0.13		1.70		1.83			(0.06	)	—		—	(0.06	)	11.42	18.99	5		129	0.94		0.94		1.22		26
8-31-20069	10.00		0.03		(0.38	)	(0.35	)		—		—		—	—		9.65	(3.50	)3		98	1.02	4	1.02	4	0.79	4	24	3
Natural Resources
CLASS 1
8-31-2008	42.52		0.18		3.88		4.06			(0.23	)	(11.20	)	—	(11.43	)	35.15	7.02	5		171	1.11		1.11		0.44		34
8-31-2007	35.71		0.22		8.52		8.74			(0.34	)	(1.59	)	—	(1.93	)	42.52	25.57	5		111	1.14		1.14		0.58		54
8-31-20062	28.70		0.34		6.70		7.04			(0.03	)	—		—	(0.03	)	35.71	24.55	3,5		81	1.12	4	1.12	4	1.13	4	71	3
CLASS NAV
8-31-2008	42.39		0.19		3.88		4.07			(0.25	)	(11.20	)	—	(11.45	)	35.01	7.08	5		500	1.06		1.06		0.45		34
8-31-2007	35.60		0.24		8.48		8.72			(0.34	)	(1.59	)	—	(1.93	)	42.39	25.61	5		731	1.09		1.09		0.64		54
8-31-20062	28.60		0.33		6.71		7.04			(0.04	)	—		—	(0.04	)	35.60	24.62	3,5		692	1.07	4	1.07	4	1.11	4	71	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund which amounted to the following amounts:

 

	Per share		Percentage of average net assets
Class 1	$	0.07		0.42	%
Class NAV	$	0.06		0.35	%

 

7	The Adviser/Subadviser voluntarily paid Class 1 and Class NAV $510,149 and $847,342, respectively, for a potential lost investment opportunity. Excluding these payments, the total return would have been 13.67% for Class 1 and 13.77% for Class NAV.
8	Less than $0.01 per share.
9	Class NAV shares began operations on 4-28-06.

 

405

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																					Ratios and supplemental data
		Income (loss) from investment operations							Less distributions											Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)			Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)		Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Optimized All Cap
CLASS A
8-31-2008	11.91		0.11		(1.75	)	(1.64	)		(0.07	)	(1.23	)	—	(1.30	)		8.97	(15.38	)2,3		1		2.03	4	1.10		1.06		183
8-31-2007	10.11		0.09	5	1.77		1.86			(0.05	)	(0.01	)	—	(0.06	)		11.91	18.45	2,3		1		2.03	4	1.10		0.76	5	148
8-31-20066	10.00		0.02		0.09		0.11			—		—		—	—			10.11	1.10	2,3,7		1		5.94	4,8	1.07	8	1.70	8	21	7
CLASS B
8-31-2008	11.86		0.04		(1.75	)	(1.71	)		(0.01	)	(1.23	)	—	(1.24	)		8.91	(15.97	)2,3		1		2.73	4	1.80		0.36		183
8-31-2007	10.11		0.01	5	1.76		1.77			(0.01	)	(0.01	)	—	(0.02	)		11.86	17.57	2,3		1		2.72	4	1.80		0.06	5	148
8-31-20066	10.00		0.01		0.10		0.11			—		—		—	—			10.11	1.10	2,3,7		1		6.63	4,8	1.75	8	1.02	8	21	7
CLASS C
8-31-2008	11.86		0.04		(1.75	)	(1.71	)		(0.01	)	(1.23	)	—	(1.24	)		8.91	(15.97	)2,3		1		2.73	4	1.80		0.36		183
8-31-2007	10.11		0.01	5	1.76		1.77			(0.01	)	(0.01	)	—	(0.02	)		11.86	17.57	2,3		1		2.72	4	1.80		0.06	5	148
8-31-20066	10.00		0.01		0.10		0.11			—		—		—	—			10.11	1.10	2,3,7		1		6.63	4,8	1.75	8	1.02	8	21	7
CLASS I
8-31-2008	11.93		0.14		(1.75	)	(1.61	)		(0.09	)	(1.23	)	—	(1.32	)		9.00	(15.08	)2,3		1		1.73	4	0.80		1.36		183
8-31-2007	10.12		0.12	5	1.76		1.88			(0.06	)	(0.01	)	—	(0.07	)	��	11.93	18.70	2,3		2		1.73	4	0.80		1.06	5	148
8-31-20066	10.00		0.02		0.10		0.12			—		—		—	—			10.12	1.20	2,3,7		1		5.66	4,8	0.78	8	1.99	8	21	7
CLASS NAV
8-31-20089	9.36		0.03		(0.39	)	(0.36	)		—		—		—	—			9.00	(3.85	)3,7		—	17	2.47	4,8	0.81	8	1.46	8	183	7
Real Estate Equity
CLASS NAV
8-31-2008	10.82		0.20		(1.24	)	(1.04	)		(0.12	)	(1.14	)	—	(1.26	)		8.52	(9.91	)3,10		264		0.91	4	0.87		2.20		27
8-31-2007	10.99		0.28		(0.12	)12	0.16			(0.17	)	(0.16	)	—	(0.33	)		10.82	1.28	3,10		254		0.90	4	0.87		2.41		55
8-31-200611	10.00		0.08		0.91		0.99			—		—		—	—			10.99	9.90	3,7		275		0.92	4,8	0.90	8	2.29	8	50	7
Real Estate Securities
CLASS 1
8-31-2008	17.80		0.32		(1.57	)	(1.25	)		(0.30	)	(2.65	)	—	(2.95	)		13.60	(7.58	)10		113		0.82		0.82		2.18		74
8-31-2007	29.94		0.50		1.52		2.02			(0.93	)	(13.23	)	—	(14.16	)		17.80	4.30	10		145		0.80		0.80		2.25		87
8-31-200613	23.03		0.64		6.46		7.10			(0.16	)	(0.03	)	—	(0.19	)		29.94	30.96	7,10		171		0.82	8	0.82	8	2.76	8	199	7
Real Return Bond
CLASS 1
8-31-2008	13.17		0.60		1.03		1.63			(0.65	)	—		—	(0.65	)		14.15	12.64	10		46		0.80		0.80		4.26		992	15
8-31-2007	13.41		0.55		(0.29	)	0.26			(0.46	)	(0.04	)	—	(0.50	)		13.17	1.97	3,10		19		0.79	4	0.79		4.16		197	15
8-31-200614	13.52		0.53		(0.24	)	0.29			(0.40	)	—	16	—	(0.40	)		13.41	2.27	7,10		17		0.80	8	0.80	8	4.52	8	216	7
CLASS NAV
8-31-2008	13.07		0.60		1.02		1.62			(0.66	)	—		—	(0.66	)		14.03	12.63	10		819		0.75		0.75		4.30		992	15
8-31-2007	13.32		0.59		(0.34	)	0.25			(0.46	)	(0.04	)	—	(0.50	)		13.07	1.95	3,10		951		0.74	4	0.74		4.53		197	15
8-31-200614	13.43		0.55		(0.26	)	0.29			(0.40	)	—	16	—	(0.40	)		13.32	2.32	7,10		684		0.75	8	0.75	8	4.75	8	216	7

 

1	Based on the average of the shares outstanding.
2	Assumes dividend reinvestment and does not reflect the effect of sales charges for Class A, Class B and Class C shares.
3	Total returns would have been lower had certain expenses not been reduced during the periods shown.
4	Does not take into consideration expense reductions during the periods shown.

406

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

5          Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund which amounted to the following amounts:

 

	Per share		Percentage of average net assets
Class A	$	0.02		0.22	%
Class B	$	0.02		0.22	%
Class C	$	0.02		0.22	%
Class I	$	0.03		0.22	%

 

6	Class A, Class B, Class C and Class I shares began operations on 7-28-06.
7	Not annualized.
8	Annualized.
9	Class NAV shares began operations on 6-12-08.
10	Assumes dividend reinvestment.
11	Class NAV shares began operations on 4-28-06.
12	The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the fund.
13	Class 1 shares began operations on 10-15-05.
14	Class 1 and Class NAV shares began operations on 10-15-05.
15	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

 

Fund	8/31/2008			8/31/2007
Real Return Bond		1,192	%	230%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
16	Less than $0.01 per share.
17	Less than $500,000.

 

407

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Small Cap
CLASS 1
8-31-2008	15.83		0.01		(1.58	)	(1.57	)		(0.01	)	(2.14	)	—	(2.15	)	12.11	(11.25	)5		2	0.97		0.97		0.10		98
8-31-2007	14.02		(0.03	)	1.84		1.81			—		—		—	—		15.83	12.91			1	0.95		0.95		(0.19	)	109
8-31-20062	13.60		(0.03	)	0.45		0.42			—		—		—	—		14.02	3.09	3		1	0.96	4	0.96	4	(0.27	)4	53	3
CLASS NAV
8-31-2008	15.86		0.02		(1.58	)	(1.56	)		(0.02	)	(2.14	)	—	(2.16	)	12.14	(11.22	)5		126	0.92		0.92		0.19		98
8-31-2007	14.04		(0.02	)	1.84		1.82			—		—		—	—		15.86	12.96			168	0.90		0.90		(0.16	)	109
8-31-20062	13.61		(0.03	)	0.46		0.43			—		—		—	—		14.04	3.16	3		240	0.91	4	0.91	4	(0.27	)4	53	3
Small Cap Index
CLASS NAV
8-31-2008	17.03		0.19		(1.04	)	(0.85	)		(0.30	)	(2.92	)	—	(3.22	)	12.96	(5.60	)5,7		125	0.56	8	0.56		1.39		86
8-31-2007	15.95		0.20		1.50		1.70			(0.13	)	(0.49	)	—	(0.62	)	17.03	10.70	5,7		89	0.54	8	0.54		1.19		40
8-31-20066	14.05		0.12		1.80		1.92			(0.02	)	—		—	(0.02	)	15.95	13.69	3,5,7		125	0.58	4,8	0.56	4	0.92	4	40	3
Small Cap Opportunities
CLASS 1
8-31-2008	23.45		0.35		(4.53	)	(4.18	)		(0.33	)	(0.07	)	—	(0.40	)	18.87	(18.09	)5		25	1.11		1.11		1.62		81
8-31-2007	23.24		0.32		0.83		1.15			(0.31	)	(0.63	)	—	(0.94	)	23.45	4.85	5		35	1.09		1.09		1.32		48
8-31-20062	21.36		0.21		1.72		1.93			(0.05	)	—	9	—	(0.05	)	23.24	9.04	3,5		30	1.10	4	1.10	4	1.01	4	59	3
CLASS NAV
8-31-2008	23.35		0.47		(4.62	)	(4.15	)		(0.34	)	(0.07	)	—	(0.41	)	18.79	(18.04	)5		97	1.06		1.06		1.68		81
8-31-2007	23.14		0.34		0.81		1.15			(0.31	)	(0.63	)	—	(0.94	)	23.35	4.88	5		194	1.04		1.04		1.37		48
8-31-20062	21.26		0.22		1.71		1.93			(0.05	)	—	9	—	(0.05	)	23.14	9.09	3,5		217	1.05	4	1.05	4	1.05	4	59	3
Small Company
CLASS 1
8-31-2008	16.82		(0.03	)	(1.91	)	(1.94	)		—		(1.01	)	—	(1.01	)	13.87	(11.92	)5		4	1.30		1.30		(0.23	)	145
8-31-2007	15.42		(0.04	)	1.44		1.40			—		—		—	—		16.82	9.08			5	1.25		1.25		(0.24	)	160
8-31-20062	15.15		(0.06	)	0.33		0.27			—		—		—	—		15.42	1.78	3		6	1.34	4	1.34	4	(0.40	)4	110	3
CLASS NAV
8-31-2008	16.85		(0.03	)	(1.91	)	(1.94	)		—	9	(1.01	)	—	(1.01	)	13.90	(11.90	)5		60	1.25		1.25		(0.17	)	145
8-31-2007	15.44		(0.03	)	1.44		1.41			—		—		—	—		16.85	9.13			93	1.20		1.20		(0.20	)	160
8-31-20062	15.16		(0.04	)	0.32		0.28			—		—		—	—		15.44	1.85	3		87	1.29	4	1.29	4	(0.31	)4	110	3

 

1	Based on the average of the shares outstanding.
2	Class 1 and Class NAV shares began operations on 10-15-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	Class NAV shares began operations on 10-29-05.
7	Total returns would have been lower had certain expenses not been reduced during the periods shown.
8	Does not take into consideration expense reductions during the periods shown.
9	Less than $0.01 per share.

 

408

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																				Ratios and supplemental data
		Income (loss) from investment operations							Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Small Company Growth
CLASS NAV
8-31-2008	13.09		(0.07	)	(0.77	)	(0.84	)		—		(0.30	)	—	(0.30	)	11.95	(6.57	)5		169	1.10		1.10		(0.54	)	38
8-31-2007	11.09		(0.09	)	2.29		2.20			—		(0.20	)	—	(0.20	)	13.09	20.04	5		208	1.11		1.11		(0.68	)	39
8-31-20062	10.00		(0.08	)	1.17		1.09			—		—		—	—		11.09	10.90	3		74	1.16	4	1.16	4	(0.83	)4	49	3
Small Company Value
CLASS 1
8-31-2008	25.81		0.13		0.12		0.25			(0.04	)	(1.11	)	—	(1.15	)	24.91	1.15	5,7		134	1.12	8	1.07		0.52		22
8-31-2007	23.66		0.05		2.54		2.59			(0.07	)	(0.37	)	—	(0.44	)	25.81	10.98	5,7		144	1.11	8	1.06		0.20		18
8-31-20066	21.09		0.10		2.52		2.62			(0.05	)	—		—	(0.05	)	23.66	12.41	3,5,7		149	1.12	4,8	1.10	4	0.46	4	12	3
CLASS NAV
8-31-2008	25.79		0.14		0.12		0.26			(0.05	)	(1.11	)	—	(1.16	)	24.89	1.20	5,7		418	1.07	8	1.02		0.58		22
8-31-2007	23.63		0.06		2.54		2.60			(0.07	)	(0.37	)	—	(0.44	)	25.79	11.04	5,7		319	1.06	8	1.01		0.25		18
8-31-20066	21.06		0.11		2.51		2.62			(0.05	)	—		—	(0.05	)	23.63	12.44	3,5,7		239	1.07	4,8	1.05	4	0.53	4	12	3
Spectrum Income
CLASS NAV
8-31-2008	10.51		0.48		(0.26	)	0.22			(0.50	)	(0.14	)	—	(0.64	)	10.09	2.06	5,7		1,065	0.86	8	0.83		4.62		67	9
8-31-2007	10.27		0.47		0.24		0.71			(0.45	)	(0.02	)	—	(0.47	)	10.51	7.00	5,7		979	0.88	8	0.86		4.46		73	9
8-31-20062	10.00		0.35		0.19		0.54			(0.27	)	—		—	(0.27	)	10.27	5.47	3,5,7		764	0.94	4,8	0.93	4	4.15	4	123	3
Strategic Bond
CLASS 1
8-31-2008	11.56		0.71		(1.12	)	(0.41	)		(0.68	)	—		—	(0.68	)	10.47	(3.74	)5		38	0.80		0.80		6.32		154	9
8-31-2007	11.79		0.65		(0.25	)	0.40			(0.63	)	—	10	—	(0.63	)	11.56	3.36	5		45	0.81		0.81		5.47		91	9
8-31-20066	11.85		0.51		(0.04	)	0.47			(0.53	)	—	10	—	(0.53	)	11.79	4.18	3,5		42	0.82	4	0.82	4	4.88	4	192	3
CLASS NAV
8-31-2008	11.54		0.71		(1.12	)	(0.41	)		(0.68	)	—		—	(0.68	)	10.45	(3.70	)5		470	0.75		0.75		6.41		154	9
8-31-2007	11.77		0.65		(0.24	)	0.41			(0.64	)	—	10	—	(0.64	)	11.54	3.44	5		424	0.76		0.76		5.54		91	9
8-31-20066	11.83		0.51		(0.04	)	0.47			(0.53	)	—	10	—	(0.53	)	11.77	4.22	3,5		270	0.77	4	0.77	4	4.88	4	192	3

 

1	Based on the average of the shares outstanding.
2	Class NAV shares began operations on 10-29-05.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	Class 1 and Class NAV shares began operations on 10-15-05.
7	Total returns would have been lower had certain expenses not been reduced during the periods shown.
8	Does not take into consideration expense reductions during the periods shown.
9	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

 

Fund	8-31-2008			8-31-2007
Spectrum Income		114	%		110	%
Strategic Bond		394	%		442	%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
10	Less than $0.01 per share.

 

409

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																			Ratios and supplemental data
		Income (loss) from investment operations						Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net investment income (loss) ($)1	Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)			From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
Strategic Income
CLASS NAV
8-31-2008	10.06		0.62	(0.25	)	0.37			(0.41	)	—		—	(0.41	)	10.02	3.67	5		463	0.76		0.76		6.03		55
8-31-2007	10.06		0.51	(0.12	)	0.39			(0.39	)	—		—	(0.39	)	10.06	4.01	5		423	0.78		0.78		5.15		97	6
8-31-20062	10.00		0.14	(0.01	)	0.13			(0.07	)	—		—	(0.07	)	10.06	1.37	3,5		281	0.86	4	0.86	4	4.18	4	65	3
Total Bond Market
CLASS NAV
8-31-2008	10.02		0.46	0.08		0.54			(0.49	)	—		—	(0.49	)	10.07	5.54	5,8		60	0.61	9	0.57		4.56		97
8-31-20077	10.00		0.40	(0.05	)	0.35			(0.33	)	—		—	(0.33	)	10.02	3.54	3,5,8		54	0.62	4,9	0.56	4	4.66	4	101	3
Total Return
CLASS 1
8-31-2008	13.79		0.61	0.44		1.05			(0.68	)	(0.05	)	—	(0.73	)	14.11	7.78	5,8		160	0.79	9	0.79		4.32		121	6
8-31-2007	13.78		0.64	(0.06	)	0.58			(0.54	)	(0.03	)	—	(0.57	)	13.79	4.26	5		126	0.83	10,11	0.83	10,11	4.67		349	6
8-31-200612	13.70		0.46	(0.04	)	0.42			(0.34	)	—		—	(0.34	)	13.78	3.14	3,5		118	0.82	4	0.82	4	3.85	4	398	3
CLASS NAV
8-31-2008	13.75		0.62	0.45		1.07			(0.69	)	(0.05	)	—	(0.74	)	14.08	7.93	5,8		1,680	0.74	9	0.74		4.37		121	6
8-31-2007	13.75		0.65	(0.08	)	0.57			(0.54	)	(0.03	)	—	(0.57	)	13.75	4.26	5		1,400	0.78	10,11	0.78	10,11	4.77		349	6
8-31-200612	13.67		0.47	(0.05	)	0.42			(0.34	)	—		—	(0.34	)	13.75	3.18	3,5		1,041	0.77	4	0.77	4	3.95	4	398	3
U.S. Government Securities
CLASS 1
8-31-2008	13.43		0.51	(0.72	)	(0.21	)		(0.55	)	—		—	(0.55	)	12.67	(1.67	)5		41	0.77		0.77		3.86		50	6
8-31-2007	13.59		0.62	(0.14	)	0.48			(0.62	)	(0.02	)	—	(0.64	)	13.43	3.62	5		43	0.76		0.76		4.54		59	6
8-31-200612	13.54		0.44	(0.07	)	0.37			(0.32	)	—	13	—	(0.32	)	13.59	2.87	3,5		43	0.78	4	0.78	4	3.67	4	100	3
CLASS NAV
8-31-2008	13.40		0.51	(0.71	)	(0.20	)		(0.56	)	—		—	(0.56	)	12.64	(1.62	)5		159	0.72		0.72		3.90		50	6
8-31-2007	13.56		0.62	(0.13	)	0.49			(0.63	)	(0.02	)	—	(0.65	)	13.40	3.69	5		154	0.71		0.71		4.58		59	6
8-31-200612	13.51		0.44	(0.06	)	0.38			(0.33	)	—	13	—	(0.33	)	13.56	2.91	3,5		161	0.73	4	0.73	4	3.75	4	100	3

 

1	Based on the average of the shares outstanding.
2	Class NAV shares began operations on 4-28-06.
3	Not annualized.
4	Annualized.
5	Assumes dividend reinvestment.
6	The Portfolio turnover rates including the effect of “TBA” (to be announced) for the periods ended were as follows:

 

Fund	8-31-2008			8-31-2007
Strategic Income		61	%		106	%
Total Return		440	%		443	%
U.S. Government Securities		575	%		739	%

 

	The year ended 8-31-2006 excludes the effect of TBA transactions.
7	Class NAV shares began operations on 10-27-06.
8	Total returns would have been lower had certain expenses not been reduced during the periods shown.
9	Does not take into consideration expense reductions during the periods shown.
10	Includes interest expense on securities sold short. Excluding this interest expense the ratio would have been 0.81% and 0.76% for Class 1 and Class NAV, respectively.
11	Includes interest and fees on inverse floaters. Excluding this expense the ratio for Class 1 and Class NAV would have been 0.82% and 0.77%, respectively.
12	Class 1 and Class NAV shares began operations on 10-15-05.
13	Less than $0.01 per share.

 

410

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Financial Highlights

Per share operating performance for a share outstanding throughout the period																						Ratios and supplemental data
			Income (loss) from investment operations					��		Less distributions											Ratios to average net assets
Period ended		Net asset value, beginning of period ($)		Net investment income (loss) ($)1		Net real- ized and unrealized gain (loss) on invest- ments ($)		Total from investment oper- ations ($)				From net investment income ($)		From net realized gain ($)		Tax return of capital ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Ratio of gross expenses to average net assets (%)		Ratio of net expenses to average net assets (%)		Ratio of net investment income (loss) to average net assets (%)		Portfolio turnover (%)
U.S. High Yield Bond
CLASS 1
8-31-2008		12.87		0.92		(0.76	)	0.16				(0.94	)	—	2	—	(0.94	)	12.09	1.25	6		6	0.82		0.82		7.43		59
8-31-2007		13.05		0.95		(0.18	)	0.77				(0.95	)	—	2	—	(0.95	)	12.87	5.94	6		4	0.84		0.84		7.25		86
8-31-20063		12.74		0.80		0.02		0.82			��	(0.51	)	—		—	(0.51	)	13.05	6.55	4,6		2	0.87	5	0.87	5	7.12	5	108	4
CLASS NAV
8-31-2008		12.87		0.93		(0.77	)	0.16				(0.94	)	—	2	—	(0.94	)	12.09	1.31	6		523	0.77		0.77		7.48		59
8-31-2007		13.05		0.96		(0.18	)	0.78				(0.96	)	—	2	—	(0.96	)	12.87	6.02	6		392	0.79		0.79		7.31		86
8-31-20063	��	12.74		0.80		0.02		0.82				(0.51	)	—		—	(0.51	)	13.05	6.58	4,6		288	0.82	5	0.82	5	7.06	5	108	4
U.S. Multi Sector
CLASS NAV
8-31-2008		11.29		0.13		(1.28	)	(1.15	)			(0.14	)	(0.35	)	—	(0.49	)	9.65	(10.64	)6		904	0.79		0.79		1.25		84
8-31-2007		10.41		0.13		0.90		1.03				(0.10	)	(0.05	)	—	(0.15	)	11.29	9.93	6		1,524	0.80		0.80		1.19		72
8-31-20067		10.00		0.09		0.33		0.42				(0.01	)	—		—	(0.01	)	10.41	4.25	4,6		1,227	0.82	5	0.82	5	1.01	5	116	4
Value
CLASS NAV
8-31-2008		11.43		0.08		(1.20	)	(1.12	)			(0.06	)	(0.72	)	—	(0.78	)	9.53	(10.48	)6,9		26	1.08	10	0.99		0.79		76
8-31-20078		10.00		0.08		1.36		1.44				(0.01	)	—		—	(0.01	)	11.43	14.45	4,6,9		14	1.40	5,10	0.99	5	0.88	5	70	4
Value & Restructuring
CLASS NAV
8-31-2008		12.92		0.14		(0.85	)	(0.71	)			(0.19	)	(0.04	)	—	(0.23	)	11.98	(5.68	)6		568	0.86		0.86		1.10		14
8-31-2007		11.08		0.18	11	1.82		2.00				(0.12	)	(0.04	)	—	(0.16	)	12.92	18.12	6		395	0.86		0.86		1.40	11	19
8-31-20067		10.00		0.12		0.99		1.11				(0.03	)	—		—	(0.03	)	11.08	11.07	4,6		296	0.92	5	0.92	5	1.33	5	17	4
Vista
CLASS NAV
8-31-2008		14.37		(0.07	)	(0.64	)	(0.71	)			—		(1.11	)	—	(1.11	)	12.55	(6.15	)6		114	0.98		0.98		(0.52	)	154
8-31-2007		10.70		(0.06	)11	3.73		3.67				—		—		—	—		14.37	34.30			170	0.97		0.97		(0.48	)11	152
8-31-20067		10.00		(0.01	)	0.71		0.70				—		—		—	—		10.70	7.00	4		123	1.04	5	1.04	5	(0.15	)5	205	4

 

1	Based on the average of the shares outstanding.
2	Less than $0.01 per share.
3	Class 1 and Class NAV shares began operations on 10-15-05.
4	Not annualized.
5	Annualized.
6	Assumes dividend reinvestment.
7	Class NAV shares began operations on 10-29-05.
8	Class NAV shares began operations on 10-27-06.
9	Total returns would have been lower had certain expenses not been reduced during the periods shown.
10	Does not take into consideration expense reductions during the periods shown.
11	Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund which amounted to the following amounts:

 

Fund	Class		Per share		Percentage of average net assets
Value & Restructuring		NAV	$	0.04		0.31	%
Vista		NAV	$	0.02		0.14	%

 

411

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Notes to Financial Statements

1.  ORGANIZATION OF THE TRUST The John Hancock Funds II (JHF II or the Trust) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940 (the 1940 Act), as amended, as an open-end investment management company. It is a series company, which means it has multiple Funds, each with a stated investment objective that it pursues through separate investment policies.

The Trust currently offers seventy-five separate investment Funds (individually the Fund and collectively the Funds), fifty-seven of which are as follows:

Absolute Return	High Income	Real Estate Securities
Active Bond	High Yield	Real Return Bond
All Cap Core	Index 500	Small Cap
All Cap Growth	International Equity Index	Small Cap Index
All Cap Value	International Opportunities	Small Cap Opportunities
American Diversified Growth & Income	International Small Cap	Small Company
American Fundamental Holdings	International Small Company	Small Company Growth
American Global Diversification	International Value	Small Company Value
Blue Chip Growth	Investment Quality Bond	Spectrum Income
Capital Appreciation	Large Cap	Strategic Bond
Core Bond	Large Cap Value	Strategic Income
Core Equity	Mid Cap Index	Total Bond Market
Emerging Growth	Mid Cap Intersection	Total Return
Emerging Markets Value	Mid Cap Stock	U.S. Government Securities
Emerging Small Company	Mid Cap Value	U.S. High Yield Bond
Equity-Income	Mid Cap Value Equity	U.S. Multi Sector
Fundamental Value	Natural Resources	Value
Global Bond	Optimized All Cap	Value & Restructuring
Global Real Estate	Real Estate Equity	Vista

 

The five Lifestyle Portfolios, nine Lifecycle Portfolios, Floating Rate Income Fund, Optimized Value Fund, Retirement Distribution Portfolio and Retirement Rising Distribution Portfolio are covered in separate reports.

Each of the Funds, with the exception of Absolute Return, American Diversified Growth & Income, American Fundamental Holdings, American Global Diversification, Core Equity, Global Bond, Global Real Estate, Natural Resources, Real Estate Equity, Real Estate Securities, Real Return Bond and U.S. Multi Sector, is diversified for purposes of the 1940 Act.

Absolute Return operates as a “fund of funds,” investing in Class NAV shares of underlying funds of the Trust and John Hancock Funds III (“JHF III”) and also in other affiliated funds of the John Hancock Funds complex. It may also invest in unaffiliated underlying funds and other permitted investments.

American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification (collectively, JHF II American Funds) operate as a “fund of funds,” investing in shares of mutual funds (underlying funds). The American Funds Insurance Series’ accounting policies are outlined in their financial statements, available at the Securities and Exchange Commission’s (SEC) Web site at www.sec.gov, or at the Commission’s public reference room in Washington, D.C. These Funds are not covered by this report.

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

The Funds described in this Annual Report offer six classes of shares as follows:

FUND	CLASS A		CLASS B		CLASS C		CLASS I	CLASS 1		CLASS NAV
Absolute Return		•		•		•			•
Active Bond									•		•
All Cap Core											•
All Cap Growth									•		•
All Cap Value									•		•
American Diversified Growth & Income									•
American Fundamental Holdings									•
American Global Diversification									•
Blue Chip Growth									•		•
Capital Appreciation									•		•
Core Bond									•		•
Core Equity									•		•
Emerging Growth									•		•
Emerging Markets Value											•
Emerging Small Company									•		•
Equity-Income									•		•
Fundamental Value									•		•

412

John Hancock Funds II
Notes to Financial Statements

ORGANIZATION OF THE TRUST, CONTINUED

FUND	CLASS A		CLASS B		CLASS C		CLASS I		CLASS 1		CLASS NAV
Global Bond										•		•
Global Real Estate												•
High Income												•
High Yield										•		•
Index 500												•
International Equity Index												•
International Opportunities										•		•
International Small Cap										•		•
International Small Company												•
International Value										•		•
Investment Quality Bond										•		•
Large Cap										•		•
Large Cap Value										•		•
Mid Cap Index												•
Mid Cap Intersection												•
Mid Cap Stock										•		•
Mid Cap Value										•		•
Mid Cap Value Equity												•
Natural Resources										•		•
Optimized All Cap		•		•		•		•				•
Real Estate Equity												•
Real Estate Securities										•
Real Return Bond										•		•
Small Cap										•		•
Small Cap Index												•
Small Cap Opportunities										•		•
Small Company										•		•
Small Company Growth												•
Small Company Value										•		•
Spectrum Income												•
Strategic Bond										•		•
Strategic Income												•
Total Bond Market												•
Total Return										•		•
U.S. Government Securities										•		•
U.S. High Yield Bond										•		•
U.S. Multi Sector												•
Value												•
Value & Restructuring												•
Vista												•

 

Class A, B, and C shares are open to all retail investors for Absolute Return and Optimized All Cap. Class I shares are offered without any sales charge to various institutional and certain individual investors for Optimized All Cap. Class 1 shares are sold only to certain exempt separate accounts of John Hancock USA and John Hancock New York. Class NAV shares are sold to Absolute Return, Lifestyle Portfolios, Lifecycle Portfolios and to certain institutional investors. The shares of each class represent an interest in the same portfolio of investments of the Fund, and have equal rights as to voting, redemptions, dividends and liquidation, except that certain expenses, subject to the approval of the Trustees, may be applied differently to each class of shares in accordance with current regulations of the Securities and Exchange Commission and the Internal Revenue Service. Shareholders of a class that bears distribution and service expenses under the terms of a distribution plan have exclusive voting rights to that distribution plan.

At August 31, 2008, John Hancock USA owned shares of beneficial interest for the following Funds:

FUND	CLASS A		CLASS B		CLASS C		CLASS 1		CLASS I		CLASS NAV
Absolute Return		137,835		136,668		136,668		138,256		—		—
American Diversified Growth & Income		—		—		—		100,000		—		—
American Fundamental Holdings		—		—		—		100,000		—		—
American Global Diversification		—		—		—		100,000		—		—
Optimized All Cap		141,217		140,131		140,131		—		141,681		—
Value		—		—		—		—		—		537,521

 

New Funds  Effective July 1, 2008, American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification commenced operations.

Change in Fund Name  Effective April 28, 2008, Quantitative All Cap changed its name to Optimized All Cap.

413

John Hancock Funds II
Notes to Financial Statements

ORGANIZATION OF THE TRUST, CONTINUED

Cessation of Operations  On April 25, 2008, all of the net assets were redeemed from Quantitative Mid Cap and U.S. Global Leaders Growth and the Funds were terminated.

2.  SIGNIFICANT ACCOUNTING POLICIES The Financial Statements have been prepared in conformity with accounting policies generally accepted in the United States of America, which require estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. The following summarizes the significant accounting policies of the Funds.

Security Valuation  The net asset value of the shares of each Fund is determined daily as of the close of the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Investments in underlying Funds of the JHF II American Funds and the Absolute Return Portfolio are valued at their respective net asset values each business day and securities in the underlying Funds are valued in accordance with their respective valuation policies, as outlined in the underlying Funds’ financial statements. Short-term debt investments that have a remaining maturity of 60 days or less are valued at amortized cost, and thereafter assume a constant amortization to maturity of any discount or premium, which approximates market value. Investments in John Hancock Cash Investment Trust (JHCIT), an affiliate of the John Hancock Advisers, LLC (JHA), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of MFC, are valued at their net asset value each business day. Listed options if no closing price is available are valued at the mean between the last bid and the ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by management using an independent source at the mean between the last bid and ask prices. Swaps are generally valued at an evaluated bid as reported by management using an independent pricing service. All other securities held by the Funds and by the underlying affiliated Funds are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade or, lacking any sales, at the closing bid price. Securities sold short are valued at the closing asking price. Securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Securities for which there are no such quotations, principally debt securities, are valued based on the valuation provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, which take 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.

The Following Funds hold securities that are valued on the basis of a price provided by a single pricing source, including broker-dealers from whom the security was purchased. The risk associated with single sourced prices is that when markets are less liquid the price realized upon sale may be different than the price to value the security and the difference could material to the Funds.

FUND	PERCENTAGE OF SINGLE SOURCE ONLY SECURITIES AT AUGUST 31, 2008
High Income		7.36	%

 

Other assets and securities for which no such quotations are readily available are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. The values of such securities used in computing the net asset value of a Fund’s shares are generally determined as of such times. Occasionally, significant events that affect the values of such securities may occur between the times at which such values are generally determined and the close of the NYSE. Upon such an occurrence, these securities will be valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees.

In deciding whether to make a fair value adjustment to the price of a security, the Board of Trustees or their designee may review a variety of factors, including developments in foreign markets, the performance of U.S. securities markets and the performance of instruments trading in U.S. markets that represent foreign securities and baskets of foreign securities. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed, but the Fund is calculating the net asset value. In view of these factors, it is likely that Funds investing significant amounts of assets in securities in foreign markets will be fair valued more frequently than Funds investing significant amounts of assets in frequently traded, U.S. exchange-listed securities of large-capitalization U.S. issuers.

For purposes of determining when fair value adjustments may be appropriate with respect to Funds that invest in securities in foreign markets that close prior to the NYSE, the Funds will, on an ongoing basis, monitor for “significant market events.” A significant market event may be a certain percentage change in the value of an index that tracks foreign markets in which Funds have significant investments. If a significant market event occurs due to a change in the value of the index, the pricing for all Funds that invest in foreign markets that have closed prior to the NYSE will promptly be reviewed and potential adjustments to the net asset value of such Funds will be recommended to the Trust’s Pricing Committee where applicable.

Other portfolio securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Trust’s Pricing Committee in accordance with procedures adopted by the Board of Trustees.

Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity.

New Accounting Pronouncements  In September 2006, Financial Accounting Standards Board (FASB) Standard No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. As of August 31, 2008, management does not believe the adoption of FAS 157 will have a material impact on the amounts reported in the financial statements.

In March 2008, FASB No. 161 (FAS 161), Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (FAS 133), was issued and is effective for fiscal years or interim periods beginning after November 15, 2008. FAS 161 amends and expands the disclosure requirements of FAS 133 in order to provide financial statement users an understanding of a company’s use of derivative instruments, how derivative instruments are accounted for under FAS 133 and related interpretations and how these instruments affect a company’s financial position, performance, and cash flows. FAS 161 requires companies to disclose information detailing the objectives and strategies for using derivative instruments, the level of derivative activity entered into by the company, and any credit risk-related contingent features of the agreements. Management is currently evaluating the adoption of FAS 161 on the Fund’s financial statement disclosures.

414

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

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

Repurchase Agreements  Each Fund may enter into repurchase agreements. When a Fund enters into a repurchase agreement through its custodian, it receives delivery of securities, the amount of which at the time of purchase and each subsequent business day is required to be maintained at such a level that the market value is generally at least 102% of the repurchase amount. Each Fund will take receipt of all securities underlying the repurchase agreements it has entered into until such agreements expire. If the seller defaults, a Fund would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. Each Fund may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser. Collateral for certain tri-party repurchase agreements is held at the custodian bank in a segregated account for the benefit of the Fund and the counterparty.

Foreign Currency Transactions  The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing exchange rates at period end. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the prevailing exchange rates on the respective dates of the transactions.

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed but is included with net realized and unrealized gain/appreciation and loss/depreciation on investments.

Certain Funds may be subject to capital gains and repatriation taxes imposed by certain countries in which they invest. Such taxes are generally based upon income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation.

Certain Funds invest in securities of issuers based in countries with emerging markets or economies and may, therefore, be subject to greater market risk than Funds that invest principally in securities of issuers in more developed countries. Emerging markets securities may be more volatile and less liquid than securities of issuers in developed countries and may be subject to substantial currency fluctuations and affected by sudden economic, social and political developments in the emerging market country. The securities markets of emerging countries may have less government regulation and may be subject to less extensive accounting and financial reporting requirements than the securities markets of more developed countries. Emerging market countries may have currency controls or restrictions which may prevent or delay a Fund from taking money out of the country or may impose additional taxes on money removed from the country.

Security Transactions and Related Investment Income  Investment security and underlying affiliated Funds transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded by the underlying Funds on the ex-dividend date. Distributions from the underlying Funds are recorded on the ex-dividend date. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-date or when the Fund becomes aware of the dividends from cash collections. Discounts/premiums are accreted/amortized for financial reporting purposes. Non-cash dividends are recorded at the fair market value of the securities received. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful, based upon consistently applied procedures.

Inflation indexed securities are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. Interest is accrued based upon the principal value, which is adjusted for inflation. Principal of inflation index protected securities is increased or decreased by the rate of change in the Consumer Price Index. Interest income includes accretion of discounts and amortization of premiums as well as accretion or amortization of principal of inflation index protected securities.

From time to time, certain of the Funds may invest in REITs and, as a result, will estimate the components of distributions from these securities. Distributions from REITs received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain.

The Funds use the specific identification method for determining realized gain or loss on investments for both financial and federal income tax reporting purposes.

Broker Commission Rebates  The Funds may direct certain security trades to brokers who have agreed to rebate a portion of the related brokerage commission to the Funds. Commission rebates are reflected as a realized gain on securities in the Statements of Operations. For the year ended August 31, 2008, the following Funds received rebates:

FUND	REBATE AMOUNT
All Cap Growth	$	2,119
All Cap Value		2,329
Capital Appreciation		25,501
Core Equity		48,765
Emerging Small Company		4,818
Fundamental Value		28,890
International Equity Index		232
Large Cap		17,301
Mid Cap Intersection		112
Mid Cap Stock		7,508
Mid Cap Value		2,029
Mid Cap Value Equity		2,375
Small Cap Opportunities		2,820

 

415

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

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

Expenses not directly attributable to a particular Fund or share class are allocated based on the relative share of net assets of each Fund or share class at the time the expense was incurred. Class-specific expenses, such as Distribution (Rule 12b-1) fees, are accrued daily and charged directly to the respective share classes. In the case of the Absolute Return Portfolio and the JHF II American Funds, expenses in the Funds’ Statements of Operations reflect the expenses of the Funds and do not include any indirect expenses related to the underlying Funds. Because the underlying Funds have varied expense levels and the Absolute Return Portfolio and the JHF II American Funds may own different proportions of the underlying Funds at different times, the amount of fees and expenses incurred indirectly by the Absolute Return Portfolio and the JHF II American Funds will vary.

Options  Each Fund described in this Annual Report may purchase and sell put and call options on securities (whether or not it holds the securities in its portfolio), securities indices, currencies and futures contracts.

When a Fund writes a put or call option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently “marked-to-market” to reflect the current market value of the option written. If an option expires or if the Fund enters into an offsetting purchase option, the Fund realizes a gain (or loss if the cost of an offsetting purchase option exceeds the premium received when the option was written). If a written call option is exercised, the Fund realizes a gain or loss from the sale of the underlying security with the proceeds of the sale increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security that the Fund purchases upon exercise of the option.

A Fund, as writer of an option, may have no control over whether the underlying securities may be sold (call) or purchased (put) and, as a result, bears the market risk of an unfavorable change in the price of the securities underlying the written option.

When a Fund purchases a put or call option, the premium paid by the Fund is included in the Portfolio of Investments and subsequently “marked-to-market” to reflect the current market value of the option. If the purchased option expires, the Fund realizes a loss for the cost of the option. If a Fund enters into a closing sale transaction, the Fund realizes a gain or loss, depending on whether proceeds from the closing sale transaction are greater or less than the original cost of the option. If a Fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If a Fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium originally paid.

The Funds may use options to manage exposure to fluctuations in currency values. Writing puts and buying calls may increase the Fund’s exposure to the underlying instrument. Buying puts and writing calls may decrease a Fund’s exposure to the underlying instrument. Losses may arise from changes in the value of the underlying instruments if there is an illiquid secondary market for the contracts or if the counterparties do not perform under the terms of the contract.

Written options for the year ended August 31, 2008, were as follows:

	NUMBER OF CONTRACTS			PREMIUMS RECEIVED
Absolute Return
Outstanding, beginning of period		—			—
Options written		1		$	5,347
Option closed		(1	)		(5,347	)
Outstanding, end of period		—			—
Emerging Growth
Outstanding, beginning of period		—			—
Options written		511		$	122,851
Option closed		(92	)		(23,024	)
Options expired		(409	)		(95,337	)
Outstanding, end of period		10		$	4,490
Global Bond
Outstanding, beginning of period		465,900,156		$	7,188,077
Options written		392,205,568			10,578,041
Option closed		(503,002,385	)		(8,434,201	)
Options expired		(93,002,514	)		(2,489,453	)
Outstanding, end of period		262,100,825		$	6,842,464
High Yield
Outstanding, beginning of period		—			—
Options written		9,500,000		$	71,250
Options expired		(9,500,000	)		(71,250	)
Outstanding, end of period		—			—
Real Return Bond
Outstanding, beginning of period		30,600,134		$	838,814
Options written		114,953,085			5,660,316
Option closed		(28,151,513	)		(1,939,114	)
Options expired		(7,201,429	)		(1,266,604	)
Outstanding, end of period		110,200,277		$	3,293,412

416

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

	NUMBER OF CONTRACTS			PREMIUMS RECEIVED
Strategic Bond
Outstanding, beginning of period		1,245		$	487,050
Options written		12,563			7,939,271
Option closed		(2,626	)		(1,828,856	)
Options expired		(10,186	)		(5,930,523	)
Outstanding, end of period		996		$	666,942
Strategic Income
Outstanding, beginning of period		702		$	67,108
Options written		117,382,904			588,569
Option closed		(8,085,500	)		(51,497	)
Options expired		(96,073,106	)		(554,887	)
Outstanding, end of period		13,225,000		$	49,293
Total Return
Outstanding, beginning of period		385,901,338		$	4,810,711
Options written		312,805,619			12,900,342
Option closed		(9,004,561	)		(2,214,874	)
Options expired		(389,602,396	)		(6,996,927	)
Outstanding, end of period		300,100,000		$	8,499,252
U.S. Government Securities
Outstanding, beginning of period		—			—
Options written		843		$	556,504
Option closed		(365	)		(207,238	)
Options expired		(478	)		(349,266	)
Outstanding, end of period		—			—
Value & Restructuring
Outstanding, beginning of period		180		$	69,175
Options exercised		(180	)		(69,175	)
Outstanding, end of period		—			—

 

The following is a summary of open written options outstanding as of August 31, 2008:

Option on Securities

FUND	NAME OF ISSUER	STRIKE PRICE		EXPIRATION DATE			NUMBER OF CONTRACTS/NOTIONAL AMOUNT		PREMIUM		VALUE
Emerging Growth	CALLS
	Superior Energy	$	50.00		Sep 2008			10	$	4,490		($950	)
								10	$	4,490		($950	)
Global Bond	PUTS
	Fannie Mae	$	99.41		Oct 2008	��	$	7,000,000	$	40,469		($40,469	)
							$	7,000,000	$	40,469		($40,469	)

 

Options on Exchange-Traded Futures Contracts

FUND	NAME OF ISSUER	EXERCISE PRICE		EXPIRATION DATE		NUMBER OF CONTRACTS		PREMIUM		VALUE
Global Bond	CALLS
	U.S. Treasury 5-Year Note Futures	$	113.00		Sep 2008		70	$	28,263		($21,328	)
	U.S. Treasury 10-Year Note Futures		117.00		Sep 2008		56		29,610		(22,750	)
	U.S. Treasury 10-Year Note Futures		118.00		Sep 2008		59		16,446		(11,984	)
							185	$	74,319		($56,062	)
	PUTS
	Euribor Futures	$	95.25		Mar 2009		175	$	93,209		($125,301	)
	U.K. 90-Day Libor Futures		93.00		Jun 2009		200		118,594		(19,226	)
	U.K. 90-Day Libor Futures		92.00		Dec 2009		136		53,893		(9,233	)
	U.S. Treasury 10-Year Note Futures		113.50		Sep 2008		73		28,333		(22,813	)
	U.S. Treasury 10-Year Note Futures		114.50		Sep 2008		56		32,235		(31,500	)
							640	$	326,264		($208,073	)

417

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND		NAME OF ISSUER	EXERCISE PRICE		EXPIRATION DATE		NUMBER OF CONTRACTS		PREMIUM		VALUE
Real Return Bond		CALLS
		U.S. Treasury 10-Year Note Futures	$	118.00		Nov 2008		172	$	114,320		($120,937	)
		U.S. Treasury 30-Year Bond Futures		121.00		Nov 2008		24		21,315		(19,125	)
		U.S. Treasury 30-Year Bond Futures		120.00		Nov 2008		18		14,861		(19,125	)
								214	$	150,496		($159,187	)
		PUTS
		U.S. Treasury 10-Year Futures	$	112.00		Nov 2008		45	$	28,013		($21,797	)
		U.S. Treasury 30-Year Bond Futures		111.00		Nov 2008		18		13,174		(7,313	)
								63	$	41,187		($29,110	)
Strategic Bond		CALLS
		Eurodollar Futures	$	96.50		Dec 2008		21	$	13,807		($29,531	)
		U.S. Treasury 10-Year Note Futures		118.00		Nov 2008		29		20,699		(20,391	)
		U.S. Treasury 10-Year Note Futures		117.50		Nov 2008		469		378,374		(395,719	)
		U.S. Treasury 10-Year Note Futures		115.50		Nov 2008		36		32,773		(59,062	)
	��	U.S. Treasury 10-Year Note Futures		117.00		Nov 2008		52		33,709		(52,813	)
								607	$	479,362		($557,516	)
		PUTS
		Eurodollar Futures	$	96.625		Sep 2008		64	$	27,067		($400	)
		Eurodollar Futures		97.00		Sep 2008		21		4,358		(525	)
		Eurodollar Futures		97.75		Sep 2008		167		73,090		(239,018	)
		U.S. Treasury 10-Year Note Futures		112.00		Nov 2008		58		39,132		(28,094	)
		U.S. Treasury 10-Year Note Futures		111.00		Nov 2008		29		17,527		(9,969	)
		U.S. Treasury 10-Year Note Futures		108.00		Nov 2008		50		26,406		(5,469	)
								389	$	187,580		($283,475	)
Strategic Income		CALLS
		Australian Dollar vs. Canadian Dollar	$	0.95		Sep 2008		13,225,000	$	49,293		($7,926	)
								13,225,000	$	49,293		($7,926	)

 

Interest Rate Swaptions

FUND	NAME OF ISSUER	COUNTERPARTY	FLOATING RATE INDEX			PAY/RECEIVE FLOATING RATE		EXERCISE RATE			EXPIRATION DATE			NOTIONAL AMOUNT		PREMIUM		VALUE
Global Bond	CALLS
	2-Year Interest Rate Swap	HSBC Bank USA, N.A.		6	Month EUR-LIBOR		Receive		5.29	%		Jun 2009	EUR		7,700,000	$	102,350		($173,169	)
	5-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		4.30	%		Aug 2009	USD		89,800,000		2,154,077		(1,736,732	)
	5-Year Interest Rate Swap	Barclay Capital PLC		3	Month USD-LIBOR		Receive		4.15	%		Aug 2009	USD		4,400,000		110,440		(72,348	)
	7-Year Interest Rate Swap	Morgan Stanley Capital Services, Inc.		3	Month USD-LIBOR		Receive		4.90	%		Jul 2009	USD		21,400,000		719,896		(816,059	)
	7-Year Interest Rate Swap	Merrill Lynch Capital Service		3	Month USD-LIBOR		Receive		4.40	%		Aug 2009	USD		3,100,000		102,300		(69,666	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		4.40	%		Aug 2009	USD		20,400,000		667,948		(458,449	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		4.55	%		Aug 2009	USD		11,100,000	$	339,858		($294,929	)
	7-Year Interest Rate Swap	Barclay Capital PLC		3	Month USD-LIBOR		Receive		5.32	%		Aug 2009	USD		24,700,000		661,415		(1,346,881	)
	7-Year Interest Rate Swap	Merrill Lynch Capital Service		3	Month USD-LIBOR		Receive		5.32	%		Aug 2009	USD		12,300,000		333,330		(670,714	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		5.32	%		Aug 2009	USD		5,400,000		149,715		(294,460	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		5.15	%		Sep 2009	USD		19,300,000		560,424		(915,004	)
	7-Year Interest Rate Swap	Deutsche Bank AG		6	Month EUR-LIBOR		Receive		4.23	%		Sep 2009	EUR		14,400,000		188,064		(189,122	)
	30-Year Interest Rate Swap	JP Morgan Chase Bank		3	Month USD-LIBOR		Receive		4.65	%		Jan 2009	USD		4,200,000		55,230		(101,324	)
															238,200,000	$	6,145,047		($7,138,857	)

418

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	NAME OF ISSUER	COUNTERPARTY	FLOATING RATE INDEX			PAY/RECEIVE FLOATING RATE		EXERCISE RATE			EXPIRATION DATE			NOTIONAL AMOUNT		PREMIUM		VALUE
Global Bond, continued	PUTS
	2-Year Interest Rate Swap	HSBC Bank USA, N.A.		6	Month EUR-LIBOR		Receive		5.29	%		Jun 2009	EUR		7,700,000	$	102,350		($26,649	)
	30-Year Interest Rate Swap	Citibank N.A.		6	Month EUR-LIBOR		Receive		5.20	%		Dec 2008	EUR		2,000,000		45,730		(6,918	)
	30-Year Interest Rate Swap	JP Morgan Chase Bank		3	Month USD-LIBOR		Receive		5.65	%		Jan 2009	USD		4,200,000		75,810		(24,638	)
															13,900,000	$	223,890		($58,205	)
Real Return Bond	CALLS
	5-Year Interest Rate Swap	Barclay Capital PLC		3	Month USD-LIBOR		Receive		4.30	%		Feb 2009	USD		11,700,000	$	308,295		($211,236	)
	5-Year Interest Rate Swap	Barclay Capital PLC		3	Month USD-LIBOR		Receive		4.15	%		Aug 2009	USD		200,000		5,020		(3,289	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		4.55	%		Aug 2009	USD		800,000		24,494		(21,256	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		4.40	%		Aug 2009	USD		1,100,000		36,370		(24,720	)
	7-Year Interest Rate Swap	Lehman Brothers Special Financing, Inc.		3	Month USD-LIBOR		Receive		5.37	%		Sep 2010	USD		11,000,000		299,750		(574,414	)
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		5.37	%		Sep 2010	USD		6,000,000		188,670		(313,316	)
	7-Year Interest Rate Swap	Goldman Sachs Capital Markets, L.P.		3	Month USD-LIBOR		Receive		5.37	%		Sep 2010	USD		5,000,000		160,750		(261,097	)
	10-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		5.25	%		Sep 2008	USD		8,400,000		210,840		(515,332	)
	10-Year Interest Rate Swap	Barclay Capital PLC		3	Month USD-LIBOR		Receive		5.25	%		Sep 2008	USD		6,000,000		159,750		(368,094	)
	10-Year Interest Rate Swap	Goldman Sachs Capital Markets, L.P.		3	Month USD-LIBOR		Receive		5.25	%		Sep 2008	USD		11,800,000		296,180		(723,918	)
															62,000,000	$	1,690,119		($3,016,672	)
	PUTS
	7-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		5.37	%		Sep 2010	USD		6,000,000	$	188,670		($132,148	)
	7-Year Interest Rate Swap	Goldman Sachs Capital Markets, L.P.		3	Month USD-LIBOR		Receive		5.37	%		Sep 2010	USD		5,000,000		160,750		(110,123	)
	7-Year Interest Rate Swap	Lehman Brothers Special Financing, Inc.		3	Month USD-LIBOR		Receive		5.37	%		Sep 2010	USD		11,000,000		413,600		(242,270	)
	10-Year Interest Rate Swap	Barclay Capital PLC		3	Month USD-LIBOR		Receive		5.25	%		Sep 2008	USD		6,000,000		159,750		(33	)
	10-Year Interest Rate Swap	Royal Bank of Scotland		3	Month USD-LIBOR		Receive		5.25	%		Sep 2008	USD		8,400,000		203,280		(46	)
	10-Year Interest Rate Swap	Goldman Sachs Capital Markets, L.P.		3	Month USD-LIBOR		Receive		5.25	%		Sep 2008	USD		11,800,000		285,560		(65	)
															48,200,000	$	1,411,610		($484,685	)
Total Return	CALLS
	5-Year Interest Rate Swap	Barclays Capital PLC		3	Month USD-LIBOR		Receive		4.30	%		Feb 2009	USD		33,900,000	$	839,730		($612,044	)
	5-Year Interest Rate Swap	Royal Bank of Scotland PLC		3	Month USD-LIBOR		Receive		4.20	%		Jul 2009	USD		9,000,000		198,900		(154,644	)
	5-Year Interest Rate Swap	Barclays Capital PLC		3	Month USD-LIBOR		Receive		4.15	%		Aug 2009	USD		11,300,000		283,630		(185,803	)
	7-Year Interest Rate Swap	Royal Bank of Scotland PLC		3	Month USD-LIBOR		Receive		4.30	%		Dec 2008	USD		90,500,000		2,321,033		(1,291,815	)
	7-Year Interest Rate Swap	Royal Bank of Scotland PLC		3	Month USD-LIBOR		Receive		4.30	%		Dec 2008	USD		11,500,000	$	310,500		($164,153	)
	7-Year Interest Rate Swap	Barclays Capital PLC		3	Month USD-LIBOR		Receive		4.60	%		Feb 2009	USD		17,200,000		552,120		(446,796	)
	7-Year Interest Rate Swap	Royal Bank of Scotland PLC		3	Month USD-LIBOR		Receive		4.25	%		Feb 2009	USD		37,000,000		1,115,550		(556,406	)
	7-Year Interest Rate Swap	Royal Bank of Scotland PLC		3	Month USD-LIBOR		Receive		4.40	%		Aug 2009	USD		52,900,000		1,732,233		(1,188,822	)
	7-Year Interest Rate Swap	Merrill Lynch Capital Service		3	Month USD-LIBOR		Receive		4.40	%		Aug 2009	USD		7,900,000		260,700		(177,537	)
	7-Year Interest Rate Swap	Royal Bank of Scotland PLC		3	Month USD-LIBOR		Receive		4.55	%		Aug 2009	USD		28,900,000		884,856		(767,879	)
															300,100,000	$	8,499,252		($5,545,899	)

 

419

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Foreign Currency Options

FUND	NAME OF ISSUER	EXERCISE PRICE		EXPIRATION DATE			NOTIONAL AMOUNT		PREMIUM		VALUE
Global Bond	CALLS
	OTC U.S. Dollar versus Brazilian RealBRL		1.65		Sep 2008	USD		3,000,000	$	32,475	($21,678)
								3,000,000	$	32,475	($21,678)

 

Securities Lending  The Funds may lend securities from time to time in order to earn additional income. The Funds retain beneficial ownership of the securities loaned and continue to receive interest and dividends of securities and to participate in any changes in their value. On the settlement date of the loan, the Funds receive collateral against the loaned securities and maintain collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. Any cash collateral received is invested in the JHCIT. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. The Funds receive compensation for lending their securities either in the form of fees, guarantees, and/or by retaining a portion of interest on the investment of any cash received as collateral.

All Funds described in this Annual Report with the exception of Absolute Return Portfolio and the American Funds, may enter into an agreement with Morgan Stanley & Co., Inc. and MS Securities Services, Inc. (collectively, Morgan Stanley) which permits the Funds to lend securities to Morgan Stanley on a principal basis. Morgan Stanley is the primary borrower of securities of the Funds. The risk of having one primary borrower of securities (as opposed to several borrowers in an agency relationship) is that should Morgan Stanley fail financially, all securities lent will be affected by the failure and by any delays in recovery of the securities (or loss of rights in the collateral).

Securities on loan and related collateral held by the Funds at August 31, 2008 are disclosed on the Statements of Assets and Liabilities.

Interest Expense   Interest expense relates to the Fund’s liability with respect to floating rate notes held by third parties in conjunction with inverse floater securities transactions and/or short sale transactions by the Funds. Interest expense is recorded as incurred.

Mortgage Dollar Rolls  All Funds described in this Annual Report, with the exception of Absolute Return Portfolio and the American Funds, may enter into mortgage dollar rolls in which they sell debt securities for delivery currently and simultaneously contract to repurchase similar, but not identical, securities at the same price or a lower price on an agreed upon date. The Funds account for such dollar rolls as purchases and sales and receive compensation as consideration for entering into the commitment to repurchase. The compensation is the difference between the current sale price and the forward price for the future purchase (often referred to as the “drop”) as well as the interest earned on the cash proceeds of the initial sale. A Fund may also be compensated by the receipt of a commitment fee. As the holder, the counterparty receives all principal and interest payments, including prepayments, made with respect to the similar security. Dollar rolls may be renewed with a new sale and repurchase price with a cash settlement made at renewal without physical delivery of the securities subject to the contract.

Certain risks may arise upon entering into mortgage dollar rolls from the potential inability of counterparties to meet the terms of their commitments. Additionally, the value of such securities may change adversely before the Fund is able to repurchase them. There can be no assurance that the Fund’s use of the cash that it receives from a mortgage dollar roll will provide a return that exceeds its costs.

Inflation-Indexed Bonds  All Funds described in this Annual Report, with the exception of Absolute Return Portfolio, may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations, even though investors do not receive their principal until maturity.

Short Sales  Certain Funds may make short sales of securities. This means a Fund may sell a security that it does not own in anticipation of a decline in the market value of the security. The Fund generally borrows the security to deliver to the buyer in a short sale. The Fund must then buy the security at its market price when the borrowed security must be returned to the lender. Short sales involve costs and risk. The Fund must pay the lender interest on the security it borrows, and the Fund will lose money if the price of the security increases between the time of the short sale and the date when the Fund replaces the borrowed security. Certain of the Funds may also make short sales “against the box.’’ In a short sale against the box, at the time of sale, the Fund owns or has the right to acquire the identical security, or one equivalent in kind or amount, at no additional cost.

Until a Fund closes its short position or replaces a borrowed security, the Fund will (i) segregate with its custodian cash or other liquid assets at such a level that the amount segregated plus the amount deposited with the lender as collateral will equal the current market value of the security sold short or (ii) otherwise cover its short position. Possible losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested.

Securities sold in short sale transactions and interest and dividend payable on such securities, if any, are reflected as a liability in the Statements of Assets and Liabilities. Fees incurred to borrow securities for short sales are recorded as interest expense in the Statements of Operations.

Futures  All Funds described in this Annual Report may purchase and sell financial futures contracts and options on those contracts. The Funds invest in contracts based on financial instruments, such as U.S. Treasury Bonds or Notes, or on securities indices such as the S&P 500 Index, in order to hedge against a decline in the value of securities owned by the Funds.

Initial margin deposits required upon entering into futures contracts are satisfied by the pledging of specific securities or cash as collateral at the broker (the Funds’ agent in acquiring the futures position). If the position is closed out by taking an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made, cash is required to be paid to or released by the broker and the Fund realizes a gain or loss.

When a Fund sells a futures contract based on a financial instrument, the Fund becomes obligated to deliver that kind of instrument at an agreed upon date for a specified price. The Fund realizes a gain or loss depending on whether the price of an offsetting purchase is less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase. The Fund could be exposed to risks if it could not close out futures positions because of

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an illiquid secondary market or the inability of counterparties to meet the terms of their contracts. Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade.

The following is a summary of open futures contracts at August 31, 2008:

FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS		POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
All Cap Core	Russell 2000 Mini Index Futures		617	Long	Sep 2008	$	45,651,830	$	366,240
	S&P 500 Index Futures		59	Long	Sep 2008		18,918,350		(1,127,322	)
	S&P Mini 500 Index Futures		10	Long	Sep 2008		641,300		14,529
									($746,553	)
Global Bond	5-Year German Euro-BOBL Futures		233	Long	Sep 2008	$	36,981,794	$	420,822
	10-Year German Euro-BUND Futures		337	Long	Sep 2008		56,440,232		965,338
	Euribor Futures		50	Long	Sep 2008		17,425,804		10,086
	Euribor Futures		404	Long	Mar 2009		141,089,431		376,526
	Euribor Futures		93	Long	Jun 2009		32,539,904		101,849
	Euribor Futures		40	Long	Dec 2009		14,015,463		88,023
	Eurodollar Futures		130	Long	Dec 2009		31,339,750		(1,625	)
	Eurodollar Futures		29	Long	Mar 2010		6,976,313		3,625
	U.S. Treasury 10-Year Note Futures		380	Long	Sep 2008		44,341,250		151,719
	U.S. Treasury 10-Year Note Futures		427	Long	Dec 2008		49,318,500		303,976
	U.S. Treasury 30-Year Bond Futures		364	Long	Dec 2008		42,701,750		(163,500	)
	2-Year German Euro-BUND Futures		5	Short	Sep 2008		756,814		(1,614	)
	10-Year Canada Government Bond Futures		31	Short	Dec 2008		3,487,719		(21,313	)
	10-Year Japan Government Bond Futures		3	Short	Sep 2008		3,814,473		(96,210	)
	90-Day Sterling Futures		13	Short	Mar 2009		2,808,547		(12,053	)
	90-Day Sterling Futures		13	Short	Jun 2009		2,814,472		(15,767	)
	Australia Treasury 3-Year Bond Futures		349	Short	Sep 2008		30,258,497		(1,104,014	)
	Australia Treasury 10-Year Bond Futures		84	Short	Sep 2008		7,365,281		(503,332	)
	Canada Bankers Acceptance Futures		13	Short	Sep 2008		2,964,271		12,702
	Canada Bankers Acceptance Futures		340	Short	Dec 2008		77,771,238		(48,149	)
								$	467,089
Index 500	S&P 500 Index Futures		82	Long	Sep 2008	$	26,293,300	$	217,125
								$	217,125
International Equity Index	CAC 40 10 Euro Index Futures		42	Long	Sep 2008	$	2,763,482		($81,891	)
	DAX Index Futures		6	Long	Sep 2008		1,416,400		(57,350	)
	FTSE 100 Index Futures		32	Long	Sep 2008		3,294,841		(6,070	)
	FTSE/JSE Top 40 Index Futures		34	Long	Sep 2008		1,128,327		(119,981	)
	Hang Seng Stock Index Futures		4	Long	Sep 2008		544,807		12,204
	IBEX 35 Index Futures		6	Long	Sep 2008		1,032,202		(4,718	)
	MSCI Taiwan Stock Index Futures		96	Long	Sep 2008		2,608,320		24,443
	OMX 30 Stock Index Futures		67	Long	Sep 2008		903,883		(12,665	)
	S&P Canada 60 Index Futures		13	Long	Sep 2008		2,014,033		(98,342	)
	Share Price Index 200 Futures		17	Long	Sep 2008		1,877,290		(9,448	)
	Topix Index Futures		34	Long	Sep 2008		3,922,536		(261,862	)
									($615,680	)
Investment Quality Bond	U.S. Treasury 10-Year Note Futures		111	Long	Dec 2008	$	12,820,500		($21,097	)
	U.S. Treasury 30-Year Bond Futures		28	Short	Dec 2008		3,284,750		6,937
									($14,160	)
Mid Cap Index	S&P Mid 400 Emini Index Futures		121	Long	Sep 2008	$	9,873,600	$	262,598
								$	262,598
Mid Cap Intersection	S&P 400 Emini Index Futures		34	Long	Dec 2008	$	2,779,160	$	13,422
								$	13,422
Real Return Bond	2-Year German Euro-BUND Futures		101	Long	Sep 2008	$	15,287,652	$	74,203
	90-Day Sterling Futures		51	Long	Mar 2009		11,018,147		2,352
	90-Day Sterling Futures		239	Long	Jun 2009		51,742,977		301,793
	Euribor Futures		76	Long	Dec 2008		26,463,529		(163,063	)
	Euribor Futures		58	Long	Mar 2009		20,255,413		(118,061	)
	Euribor Futures		242	Long	Jun 2009		84,673,728		(498,527	)
	Euribor Futures		62	Long	Sep 2009		21,718,282		(68,218	)

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FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS		POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
Real Return Bond, continued	Euribor Futures		62	Long	Dec 2009	$	21,723,967		($50,026	)
	Eurodollar Futures		76	Long	Dec 2008		18,434,750		9,500
	Eurodollar Futures		717	Long	Mar 2009		173,944,200		2,548,937
	Eurodollar Futures		827	Long	Jun 2009		200,371,763		1,914,825
	Eurodollar Futures		825	Long	Sep 2009		199,464,375		2,139,625
	Eurodollar Futures		141	Long	Dec 2009		33,991,575		23,962
	Eurodollar Futures		124	Long	Mar 2010		29,829,750		23,250
	LIBOR Futures		195	Long	Dec 2008		41,899,384		(352,684	)
	U.S. Treasury 2-Year Notes Futures		8	Long	Dec 2008		1,698,250		(1,125	)
	U.S. Treasury 10-Year Notes Futures		153	Long	Dec 2008		17,671,500		20,156
	10-Year German Euro-BUND Futures		211	Short	Sep 2008		35,337,950		(731,148	)
	10-Year Japan Government Bond Futures		18	Short	Sep 2008		22,886,837		(183,781	)
	10-Year Japan TSE Futures		2	Short	Dec 2008		2,539,122		(3,124	)
	U.K. Treasury Bonds Futures		37	Short	Dec 2008		7,549,176		(15,957	)
								$	4,872,889
Small Cap Index	Russell 2000 Index Futures		23	Long	Sep 2008	$	8,508,850	$	630,680
								$	630,680
Spectrum Income	2-Year German Euro-BUND Futures		41	Long	Sep 2008	$	6,205,878	$	13,233
	10-Year German Euro-BUND Futures		7	Long	Sep 2008		1,172,349		22,592
	U.S. Treasury 5-Year Note Futures		29	Long	Dec 2008		3,246,188		(5,629	)
	U.S. Treasury 30-Year Bond Futures		6	Long	Dec 2008		703,875		(2,696	)
	10-Year Canada Government Bond Futures		32	Short	Dec 2008		3,600,226		(14,767	)
	U.K. Treasury Bond Futures		7	Short	Dec 2008		1,428,222		(2,807	)
	U.S. Treasury 2-Year Note Futures		8	Short	Dec 2008		1,698,250		1,468
	U.S. Treasury 5-Year Note Futures		33	Short	Dec 2008		3,693,938		1,415
	U.S. Treasury 10-Year Note Futures		19	Short	Dec 2008		2,194,500		2,820
								$	15,629
Strategic Bond	10-Year German Euro-BUND Futures		374	Long	Sep 2008	$	62,636,934	$	984,875
	90-Day Sterling Futures		39	Long	Mar 2009		8,425,642		68,347
	Eurodollar Futures		234	Long	Sep 2008		56,848,838		(79,870	)
	Eurodollar Futures		206	Long	Mar 2009		49,975,600		201,845
	Eurodollar Futures		106	Long	Jun 2009		25,682,475		(209,892	)
	U.K. Treasury Bond Futures		9	Long	Dec 2008		1,055,813		72
	U.K. Treasury Bond Futures		14	Long	Dec 2008		2,856,445		7,056
	U.S. Treasury 5-Year Note Futures		651	Long	Dec 2008		72,871,313		114,339
	Australian Dollar Futures		15	Short	Sep 2008		1,283,100		121,275
	British Pound Futures		31	Short	Sep 2008		3,517,725		248,720
	Euro Currency Futures		84	Short	Sep 2008		15,362,550		989,730
	U.S. Treasury 10-Year Note Futures		271	Short	Dec 2008		31,300,500		(19,049	)
								$	2,427,448
Strategic Income	U.S. Treasury 10-Year Note Futures		176	Short	Dec 2008	$	20,328,000		($129,592	)
									($129,592	)
Total Return	90-Day Sterling Futures		646	Long	Mar 2009	$	139,563,195	$	972,625
	90-Day Sterling Futures		433	Long	Jun 2009		93,743,552		726,613
	90-Day Sterling Futures		37	Long	Dec 2009		8,008,733		(16,030	)
	Euribor Futures		48	Long	Sep 2008		16,728,772		10,011
	Euribor Futures		150	Long	Dec 2008		52,230,650		86,945
	Euribor Futures		101	Long	Mar 2009		35,272,358		182,517
	Euribor Futures		60	Long	Jun 2009		20,993,486		131,544
	Eurodollar Futures		81	Long	Sep 2008		19,678,444		5,656
	Eurodollar Futures		2,753	Long	Dec 2008		667,774,563		9,288,788
	Eurodollar Futures		2,481	Long	Mar 2009		601,890,600		4,647,200
	Eurodollar Futures		1,298	Long	Jun 2009		314,489,175		456,913
	Eurodollar Futures		629	Long	Sep 2009		152,076,475		(12,425	)
	Eurodollar Futures		499	Long	Dec 2009		120,296,425		(232,550	)
	Eurodollar Futures		357	Long	Mar 2010		85,880,813		(101,500	)
	LIBOR Futures		310	Long	Dec 2008		66,609,277		(249,856	)
	U.S. Treasury 10-Year Note Futures		477	Long	Dec 2008		55,093,500		106,406
								$	16,002,857

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FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS		POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
U.S. Government Securities	Eurodollar Futures		91	Long	Dec 2008	$	22,073,188	$	4,320
	Eurodollar Futures		67	Long	Mar 2009		16,254,200		21,503
	Eurodollar Futures		114	Long	Sep 2009		27,562,350		12,205
	U.S. Treasury 2-Year Note Futures		145	Long	Dec 2008		30,780,781		19,134
	U.S. Treasury 5-Year Note Futures		472	Long	Dec 2008		52,834,500		75,593
	U.S. Treasury 10-Year Note Futures		345	Short	Dec 2008		39,847,500		(48,264	)
	U.S. Treasury 30-Year Bond Futures		10	Short	Dec 2008		1,173,125		(1,925	)
								$	82,566
U.S. Multi Sector	S&P Mini 500 Index Futures		293	Long	Sep 2008	$	18,790,090	$	388,197
								$	388,197

 

Swap Contracts   All Funds described in this Annual Report may enter into swap agreements. A swap is an exchange of cash payments between the Fund and another party. Net cash payments are exchanged at specified intervals and are recorded as a realized gain or loss in the Statements of Operations. Cash payments may include upfront cash payments made by or to the fund. The upfront payments are amortized or accreted for financial reporting purposes, with the unamortized/unaccreted portion included in values recorded on the Statements of Assets and Liabilities. The value of the swap is adjusted daily and the change in value, including accruals of periodic amounts of interest to be paid or received, is recorded as swap contracts at value in Statements of Assets and Liabilities and as unrealized appreciation or depreciation in the Statements of Operations. A liquidation payment received or made upon early termination is recorded as a realized gain or loss in the Statements of Operations. Upfront payments made and/or received by the Funds are recorded as an asset and/or liability on the Statements of Assets and Liabilities and are recorded as a realized gain or loss on the termination date. Swap contracts are subject to risks related to the counterparty’s ability to perform under the contract, and may decline in value if the counterparty’s creditworthiness deteriorates. The risks may arise from unanticipated movement in interest rates. The Fund may also suffer losses if it is unable to terminate outstanding swap contracts or reduce its exposure through offsetting transactions.

Certain Funds hold interest rate swap agreements which involve the periodic exchange of cash flows, such as the exchange of fixed rate interest payments for floating rate interest payments based on a notional principal amount. The interest rates may be based on a specific financial index or the exchange of two distinct floating rate payments. The Funds may enter into an interest rate swap in order to manage its exposure to interest and foreign exchange rate fluctuations.

Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the expiration date, or (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark.

Credit default swaps involve the exchange of a fixed-rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a “guarantor” receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. Certain Funds may enter into credit default swaps in which either it or its counterparty act as guarantors. By acting as the guarantor of a swap, a Fund assumes the market and credit risk of the underlying instrument, including liquidity and loss of value.

In a currency swap a Fund would agree with the other party to exchange cash flows based on the relative differences in values of a notional amount of two (or more) currencies.

The Funds had the following interest rate swap contracts open at August 31, 2008:

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond
	Bank of America N.A.	12,500,000	CAD	Fixed 4.250%	3 Month BA-CDOR	Dec 2013		($124,109	)		($256,345	)		($380,454	)
	Bank of America N.A.	8,800,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		314,424			(496,536	)		(182,112	)
	Barclays Bank PLC	30,900,000	EUR	6 Month EURIBOR	Fixed 4.000%	Sep 2009		(181,930	)		(617,149	)		(799,079	)
	Barclays Bank PLC	41,800,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2010		288,838			(82,384	)		206,454
	Barclays Bank PLC	2,700,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2015		(11,117	)		(57,364	)		(68,481	)
	Barclays Bank PLC	252,500,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2015		1,540,250			(1,615,192	)		(74,942	)
	Barclays Bank PLC	12,700,000	GBP	Fixed 4.500%	6 Month LIBOR	Sep 2017		59,506			2,856			62,362
	Barclays Bank PLC	1,130,000,000	JPY	Fixed 2.500%	6 Month LIBOR	Dec 2027		(209,904	)		(361,161	)		(571,065	)
	Barclays Bank PLC	5,000,000	GBP	Fixed 4.000%	6 Month LIBOR	Dec 2035		360,540			(292,647	)		67,893
	Barclays Bank PLC	13,800,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		375,912			(661,496	)		(285,584	)
	Barclays Bank PLC	2,400,000	GBP	6 Month LIBOR	Fixed 5.000%	Mar 2039		240,802			193,353			434,155

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FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond continued
	BNP Paribas	1,700,000	EUR	Fixed 5.000%	6 Month EURIBOR	Mar 2039		($20,100	)		($114,042	)		($134,142	)
	Citibank N.A.	5,900,000	GBP	Fixed 5.000%	6 Month LIBOR	Jun 2009		1,577			92,878			94,455
	Citibank N.A.	14,000,000	EUR	6 Month EURIBOR	Fixed 3.500%	Sep 2010		(49,678	)		(466,191	)		(515,869	)
	Citibank N.A.	2,800,000	GBP	6 Month LIBOR	Fixed 5.000%	Mar 2013		(110,458	)		30,843			(79,615	)
	Citibank N.A.	2,000,000	CAD	Fixed 5.000%	3 Month BA-CDOR	Jun 2015		(62,882	)		(91,750	)		(154,632	)
	Citibank N.A.	2,200,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2015		961			(56,761	)		(55,800	)
	Citibank N.A.	28,300,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		(352,960	)		(597,085	)		(950,045	)
	Citibank N.A.	2,100,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		33,295			(76,754	)		(43,459	)
	Credit Suisse International	1,400,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		(22,400	)		(26,652	)		(49,052	)
	Credit Suisse International	10,300,000	AUD	6 Month BBR-BBSW	Fixed 7.250%	Jun 2013		(13,573	)		170,556			156,983
	Credit Suisse International	9,700,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2013		32,782			(226,188	)		(193,406	)
	Deutsche Bank AG	9,400,000	AUD	6 Month BBR-BBSW	Fixed 7.500%	Mar 2011		(45,311	)		166,877			121,566
	Deutsche Bank AG	14,800,000	AUD	6 Month BBR-BBSW	Fixed 7.250%	Jun 2011		(50,220	)		166,702			116,482
	Deutsche Bank AG	400,000	GBP	6 Month LIBOR	Fixed 5.000%	Mar 2013		(14,649	)		3,225			(11,424	)
	Deutsche Bank AG	770,000,000	JPY	6 Month LIBOR	Fixed 1.500%	Jun 2013		15,479			50,930			66,409
	Deutsche Bank AG	1,100,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2015		(4,754	)		(23,146	)		(27,900	)
	Deutsche Bank AG	200,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2015		(8,196	)		590			(7,606	)
	Deutsche Bank AG	7,900,000	AUD	Fixed 6.500%	6 Month BBR-BBSW	Jun 2017		187,785			(100,588	)		87,197
	Deutsche Bank AG	400,000,000	JPY	Fixed 2.000%	6 Month LIBOR	Dec 2017		(62,573	)		(48,350	)		(110,923	)
	Deutsche Bank AG	1,400,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		3,220			(50,219	)		(46,999	)
	Deutsche Bank AG	2,300,000	GBP	Fixed 4.100%	6 Month LIBOR	Jun 2036		—			272,751			272,751
	Deutsche Bank AG	20,400,000	EUR	6 Month EURIBOR	Fixed 5.000%	Mar 2038		18			(10,665	)		(10,647	)
	Goldman Sachs	3,500,000	EUR	Fixed 5.000%	6 Month EURIBOR	Mar 2039		(244,313	)		(31,861	)		(276,174	)
	HSBC Bank	18,200,000	AUD	6 Month BBR-BBSW	Fixed 6.000%	Jun 2012		(117,130	)		(365,421	)		(482,551	)
	HSBC Bank	3,200,000	AUD	Fixed 6.000%	6 Month BBR-BBSW	Jun 2017		21,466			107,121			128,587
	HSBC Bank	600,000	GBP	Fixed 5.500%	6 Month LIBOR	Sep 2018		18,264			(57,098	)		(38,834	)
	JP Morgan Chase	31,000,000	EUR	Fixed 4.500%	6 Month EURIBOR	Mar 2014		(141,285	)		348,608			207,323
	JP Morgan Chase	2,700,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2015		(5,744	)		(62,737	)		(68,481	)
	JP Morgan Chase	20,700,000	EUR	Fixed 5.000%	6 Month EURIBOR	Mar 2039		(1,266,539	)		(366,831	)		(1,633,370	)
	Lehman Brothers Special Financing, Inc.	12,100,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2023		138,666			(455,359	)		(316,693	)
	Lehman Brothers Special Financing, Inc.	6,300,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		72,540			(202,916	)		(130,376	)
	Merrill Lynch Capital Services, Inc.	66,000,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		(1,335,493	)		(880,160	)		(2,215,653	)
	Morgan Stanley Capital Services Inc.	123,900,000	EUR	6 Month EURIBOR	Fixed 4.000%	Sep 2009		(668,245	)		(2,399,007	)		(3,067,252	)
	Morgan Stanley Capital Services Inc.	1,190,000,000	JPY	Fixed 1.500%	6 Month LIBOR	Dec 2010		24,755			(140,800	)		(116,045	)
	Morgan Stanley Capital Services Inc.	3,400,000	GBP	6 Month LIBOR	Fixed 5.000%	Mar 2013		(132,939	)		36,264			(96,675	)
	Morgan Stanley Capital Services Inc.	1,300,000,000	JPY	Fixed 1.980%	6 Month LIBOR	Sep 2016		—			(472,465	)		(472,465	)
	Morgan Stanley Capital Services Inc.	8,700,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		(139,170	)		(152,893	)		(292,063	)
	Morgan Stanley Capital Services Inc.	5,200,000	EUR	6 Month EURIBOR	Fixed 4.500%	Jun 2034		(363,869	)		186,711			(177,158	)

424

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond continued
	Morgan Stanley Capital Services Inc.	11,600,000	EUR	6 Month EURIBOR	Fixed 6.000%	Jun 2034	$	1,833,206		$	257,890		$	2,091,096
	Morgan Stanley Capital Services Inc.	310,000,000	JPY	Fixed 2.250%	6 Month LIBOR	Jun 2036		41,146			29,047			70,193
	Morgan Stanley Capital Services Inc.	2,100,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		9,723			(53,182	)		(43,459	)
	The Royal Bank of Scotland PLC	100,000	USD	3 Month LIBOR	Fixed 4.000%	Dec 2010		(77	)		991			914
	The Royal Bank of Scotland PLC	27,900,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2011		127,503			(55,312	)		72,191
	The Royal Bank of Scotland PLC	6,500,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2015		(149,803	)		(15,059	)		(164,862	)
	The Royal Bank of Scotland PLC	2,100,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		(17,535	)		(52,963	)		(70,498	)
	The Royal Bank of Scotland PLC	1,700,000	EUR	6 Month EURIBOR	Fixed 4.500%	Jun 2034		(121,079	)		63,162			(57,917	)
	The Royal Bank of Scotland PLC	230,000,000	JPY	Fixed 2.500%	6 Month LIBOR	Jun 2036		57,970			(117,852	)		(59,882	)
	UBS AG	4,340,000,000	JPY	6 Month LIBOR	Fixed 1.500%	Jun 2013		(161,227	)		535,530			374,303
	UBS AG	390,000,000	JPY	Fixed 2.000%	6 Month LIBOR	Dec 2017		(61,203	)		(46,947	)		(108,150	)
	UBS AG	45,700,000	AUD	6 Month BBR-BBSW	Fixed 7.500%	Mar 2011		(159,875	)		750,893			591,018
								($629,712	)		($8,789,750	)		($9,419,462	)
Real Return Bond
	Bank of America N.A.	2,400,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038	$	62,880			($112,547	)		($49,667	)
	Barclays Bank PLC	2,900,000	GBP	6 Month LIBOR	Fixed 5.000%	Jun 2009		(10,878	)		(34,766	)		(45,644	)
	Barclays Bank PLC	12,900,000	AUD	6 Month BBR-BBSW	Fixed 7.000%	Dec 2009		6,422			14,166			20,588
	Barclays Bank PLC	15,177,517	BRL	CDI	Fixed 10.680%	Jan 2012		(143,859	)		(778,574	)		(922,433	)
	Barclays Bank PLC	673,983	BRL	CDI	Fixed 12.540%	Jan 2012		(3,963	)		(9,475	)		(13,438	)
	Barclays Bank PLC	900,000	EUR	FRCPXTOB	Fixed 1.9475%	Mar 2012		452			(36,660	)		(36,208	)
	Barclays Bank PLC	200,000	EUR	FRCPXTOB	Fixed 1.960%	Apr 2012		—			(8,320	)		(8,320	)
	Barclays Bank PLC	700,000	EUR	FRCPXTOB	Fixed 1.980%	Apr 2012		—			(29,565	)		(29,565	)
	Barclays Bank PLC	1,900,000	EUR	FRCPXTOB	Fixed 2.070%	Sep 2012		—			(69,487	)		(69,487	)
	Barclays Bank PLC	5,500,000	EUR	FRCPXTOB	Fixed 2.138%	Jan 2016		—			(212,406	)		(212,406	)
	Barclays Bank PLC	10,000,000	MXN	28-day Mexico Interbank TIIE Banxico	Fixed 8.720%	Sep 2016		—			(6,910	)		(6,910	)
	Barclays Bank PLC	8,600,000	MXN	28-day Mexico Interbank TIIE Banxico	Fixed 8.330%	Feb 2017		—			(26,153	)		(26,153	)
	Barclays Bank PLC	3,000,000	GBP	UK RPI	Fixed 3.250%	Dec 2017		11,509			(277,147	)		(265,638	)
	Barclays Bank PLC	1,600,000	AUD	Fixed 6.750%	6 Month BBR-BBSW	Dec 2017		1,237			(8,047	)		(6,810	)
	Barclays Bank PLC	3,000,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2028		(36,600	)		(28,300	)		(64,900	)
	Barclays Bank PLC	4,200,000	GBP	Fixed 4.000%	6 month LIBOR	Dec 2035		81,765			(24,735	)		57,030
	Barclays Bank PLC	1,100,000	GBP	Fixed 5.000%	6 Month LIBOR	Mar 2039		(111,694	)		(87,294	)		(198,988	)
	BNP Paribas	2,200,000	EUR	FRCPXTOB	Fixed 2.040%	Feb 2011		—			(36,603	)		(36,603	)
	BNP Paribas	3,600,000	EUR	FRCPXTOB	Fixed 1.9875%	Dec 2011		—			(117,172	)		(117,172	)
	BNP Paribas	1,400,000	EUR	FRCPXTOB	Fixed 1.9825%	Mar 2012		2,872			(54,164	)		(51,292	)
	Citibank N.A.	3,500,000	AUD	6 Month BBR-BBSW	Fixed 6.500%	Jan 2010		(2,352	)		(27,292	)		(29,644	)
	Citibank N.A.	2,000,000	EUR	FRCPXTOB	Fixed 2.110%	Nov 2012		—			(73,229	)		(73,229	)
	Citibank N.A.	5,700,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		121,287			(272,135	)		(150,848	)
	Credit Suisse International	5,600,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2010		(98,638	)		(11,551	)		(110,189	)

425

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Real Return Bond, continued
	Credit Suisse International	5,000,000	USD	3 Month LIBOR	Fixed 5.000%	Dec 2018	$	117,000		$	50,853		$	167,853
	Credit Suisse International	2,200,000	GBP	Fixed 4.000%	6 month LIBOR	Dec 2035		46,498			(16,625	)		29,873
	Deutsche Bank AG	13,800,000	AUD	6 Month BBR-BBSW	Fixed 6.500%	Jan 2010		(12,097	)		(104,110	)		(116,207	)
	Deutsche Bank AG	10,800,000	EUR	6 Month EURIBOR	Fixed 4.500%	Mar 2010		(5,707	)		(115,824	)		(121,531	)
	Deutsche Bank AG	12,900,000	GBP	6 Month LIBOR	Fixed 6.000%	Mar 2010		217,577			(6,594	)		210,983
	Deutsche Bank AG	50,000,000	AUD	6 Month BBR-BBSW	Fixed 7.000%	Jun 2010		3,008			(105,707	)		(102,699	)
	Deutsche Bank AG	23,000,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2010		109,250			—			109,250
	Deutsche Bank AG	6,700,000	USD	Fixed 5.000%	3 month LIBOR	Dec 2021		464,002			(728,079	)		(264,077	)
	Goldman Sachs	1,300,000	EUR	FRCPXTOB	Fixed 1.9763%	Dec 2011		(1,698	)		(45,872	)		(47,570	)
	Goldman Sachs	500,000	EUR	FRCPXTOB	Fixed 1.960%	Mar 2012		—			(20,963	)		(20,963	)
	Goldman Sachs	5,000,000	GBP	6 Month LIBOR	Fixed 5.000%	Mar 2013		32,979			(175,889	)		(142,910	)
	Goldman Sachs	2,600,000	GBP	UK RPI	Fixed 3.110%	Jan 2018		—			(292,368	)		(292,368	)
	Goldman Sachs	1,000,000	USD	CPI-U	Fixed 2.970%	Mar 2018		—			11,217			11,217
	Goldman Sachs	900,000	GBP	Fixed 5.000%	6 Month LIBOR	Mar 2039		(103,298	)		(59,510	)		(162,808	)
	HSBC Bank	1,400,000	EUR	6 Month EURIBOR	Fixed 5.000%	Mar 2019		57,977			(4,152	)		53,825
	HSBC Bank	1,500,000	GBP	Fixed 4.250%	6 month LIBOR	Jun 2036		—			114,022			114,022
	JP Morgan Chase	2,300,000	AUD	6 Month BBR-BBSW	Fixed 6.500%	Jan 2010		(1,398	)		(17,970	)		(19,368	)
	JP Morgan Chase	2,700,000	EUR	FRCPXTOB	Fixed 2.028%	Oct 2011		—			(60,218	)		(60,218	)
	JP Morgan Chase	2,800,000	EUR	FRCPXTOB	Fixed 1.97%	Dec 2011		—			(97,136	)		(97,136	)
	JP Morgan Chase	1,500,000	EUR	FRCPXTOB	fixed 2.353%	Oct 2016		—			(22,620	)		(22,620	)
	Lehman Brothers Special Financing, Inc.	3,800,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2023		(2,090	)		130,259			128,169
	Lehman Brothers Special Financing, Inc.	11,400,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		334,481			261,683			596,164
	Merrill Lynch Capital Services, Inc.	5,500,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2010		(22,220	)		49,385			27,165
	Merrill Lynch Capital Services, Inc.	6,874,627	BRL	CDI	Fixed 12.540%	Jan 2012		(31,552	)		(105,516	)		(137,068	)
	Merrill Lynch Capital Services, Inc.	300,000	USD	3 Month LIBOR	Fixed 5.000%	Dec 2015		8,280			3,129			11,409
	Merrill Lynch Capital Services, Inc.	18,300,000	USD	Fixed 5.000%	3 month LIBOR	Dec 2023		(75,308	)		(403,658	)		(478,966	)
	Merrill Lynch Capital Services, Inc.	11,900,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		470,050			(716,315	)		(246,265	)
	Morgan Stanley Capital Services, Inc.	2,700,000,000	JPY	6 Month LIBOR	Fixed 1.000%	Mar 2009		(58,084	)		51,780			(6,304	)
	Morgan Stanley Capital Services, Inc.	13,600,000	AUD	6 Month BBR-BBSW	Fixed 7.000%	Dec 2009		7,301			14,405			21,706
	Morgan Stanley Capital Services, Inc.	66,700,000	USD	3 Month LIBOR	Fixed 4.000%	Dec 2009		484,242			76,298			560,540
	Morgan Stanley Capital Services, Inc.	14,100,000	GBP	6 Month LIBOR	Fixed 5.000%	Dec 2009		(36,712	)		(40,094	)		(76,806	)
	Morgan Stanley Capital Services, Inc.	10,800,000	EUR	6 Month EURIBOR	Fixed 4.500%	Mar 2010		(5,738	)		(115,793	)		(121,531	)
	Morgan Stanley Capital Services, Inc.	4,920,076	BRL	CDI	Fixed 12.540%	Jan 2012		(17,292	)		(80,805	)		(98,097	)
	Morgan Stanley Capital Services, Inc.	6,306,138	BRL	CDI	Fixed 10.115%	Jan 2012		(124,993	)		(349,821	)		(474,814	)
	Morgan Stanley Capital Services, Inc.	1,700,000	AUD	Fixed 6.750%	6 Month BBR-BBSW	Dec 2017		644			(7,879	)		(7,235	)
	Morgan Stanley Capital Services, Inc.	5,100,000	USD	CPI-U	Fixed 2.980%	Mar 2018		—			52,448			52,448

426

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Real Return Bond, continued
	Morgan Stanley Capital Services, Inc.	6,800,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2028	$	41,140			($188,246	)		($147,106	)
	Royal Bank of Canada	1,400,000	AUD	6 Month BBR-BBSW	Fixed 6.500%	Jan 2010		(1,572	)		(10,286	)		(11,858	)
	The Royal Bank of Scotland PLC	30,800,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2010		(129,899	)		282,023			152,124
	The Royal Bank of Scotland PLC	6,600,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2010		(121,022	)		(9,117	)		(130,139	)
	The Royal Bank of Scotland PLC	300,000	EUR	FRCPXTOB	Fixed 1.955%	Mar 2012		—			(12,162	)		(12,162	)
	The Royal Bank of Scotland PLC	1,000,000	EUR	FRCPXTOB	Fixed 1.950%	Mar 2012		—			(41,139	)		(41,139	)
	The Royal Bank of Scotland PLC	4,900,000	GBP	UK RPI	Fixed 3.183%	Dec 2017		3,910			(510,985	)		(507,075	)
	The Royal Bank of Scotland PLC	1,700,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2023		(21,675	)		(22,819	)		(44,494	)
	The Royal Bank of Scotland PLC	1,100,000	GBP	UK RPI	Fixed 3.440%	Sep 2027		—			(182,918	)		(182,918	)
	UBS AG	2,300,000	EUR	FRCPXTOB	Fixed 2.095%	Oct 2011		—			(40,093	)		(40,093	)
	UBS AG	1,600,000	EUR	Fixed 2.275%	FRCPXTOB	Oct 2016		—			(25,226	)		(25,226	)
	UBS AG	1,600,000	EUR	FRCPXTOB	Fixed 2.350%	Oct 2016		—			(25,226	)		(25,226	)
							$	1,506,424			($5,992,599	)		($4,486,175	)
Spectrum Income
	JP Morgan Chase Bank, N.A.	232,000,000	KRW	3M KW-CDC	Fixed 5.055%	Jun 2012		—			($3,462	)		($3,462	)
	JP Morgan Chase Bank, N.A.	593,000,000	KRW	3M KW-CDC	Fixed 5.200%	Jun 2012		—			(6,003	)		(6,003	)
	JP Morgan Chase Bank, N.A.	592,000,000	KRW	3M KW-CDC	Fixed 5.180%	Jun 2012		—			(6,384	)		(6,384	)
	JP Morgan Chase Bank, N.A.	810,000,000	KRW	3M KW-CDC	Fixed 5.285%	Jun 2012		—			(5,684	)		(5,684	)
								—			($21,533	)		($21,533	)
Total Return
	Bank of America N.A.	11,500,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2028	$	71,324			($320,107	)		($248,783	)
	Bank of America N.A.	15,600,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		374,369			(697,203	)		(322,834	)
	Barclays Bank PLC	9,700,000	GBP	6 Month LIBOR	Fixed 6.000%	Dec 2008		6,012			(24,860	)		(18,848	)
	Barclays Bank PLC	5,400,000	GBP	6 Month LIBOR	Fixed 6.000%	Mar 2009		11,882			(4,779	)		7,103
	Barclays Bank PLC	5,800,000	GBP	6 Month LIBOR	Fixed 5.000%	Jun 2009		(67,555	)		(24,610	)		(92,165	)
	Barclays Bank PLC	5,710,624	BRL	CDI	Fixed 11.360%	Jan 2010		—			(143,876	)		(143,876	)
	Barclays Bank PLC	500,000	EUR	FRCPXTOB	Fixed 1.960%	Apr 2012		—			(20,800	)		(20,800	)
	Barclays Bank PLC	1,200,000	GBP	Fixed 4.000%	6 Month LIBOR	Dec 2036		136,773			35,913			172,686
	BNP Paribas	6,800,000	USD	3 Month LIBOR	Fixed 0.710%	Feb 2009		2,882			(33,648	)		(30,766	)
	BNP Paribas	13,400,000	USD	3 Month LIBOR	Fixed 0.7625%	Feb 2014		2,948			(105,673	)		(102,725	)
	Citibank N.A..	5,300,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		81,499			(191,180	)		(109,681	)
	Credit Suisse International	1,100,000	GBP	6 Month LIBOR	Fixed 5.000%	Jun 2009		(8,682	)		(8,798	)		(17,480	)
	Deutsche Bank AG	5,800,000	GBP	6 Month LIBOR	Fixed 6.000%	Dec 2008		3,923			(15,193	)		(11,270	)
	Deutsche Bank AG	3,500,000	USD	3 Month LIBOR	Fixed 4.000%	Dec 2010		31,395			601			31,996
	Deutsche Bank AG	2,900,000	AUD	6 Month BBR-BBSW	Fixed 7.000%	Mar 2013		18,907			(3,538	)		15,369
	Deutsche Bank AG	4,000,000	AUD	Fixed 6.500%	6 Month BBR-BBSW	Mar 2018		(29,673	)		24,448			(5,225	)
	Deutsche Bank AG	4,300,000	GBP	Fixed 4.000%	6 Month LIBOR	Dec 2036		1,158,223			(539,431	)		618,792
	HSBC Bank	315,662	BRL	CDI	Fixed 14.765%	Jan 2012		3,269			2,076			5,345
	HSBC Bank	3,500,000	GBP	6 Month LIBOR	Fixed 5.000%	Sep 2013		35,455			(105,241	)		(69,786	)
	HSBC Bank	2,100,000	GBP	Fixed 4.000%	6 Month LIBOR	Dec 2036		313,638			(11,437	)		302,201

427

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Total Return, continued
	Lehman Brothers Special Financing, Inc.	1,200,000	USD	3 Month LIBOR	Fixed 4.000%	Dec 2010	$	10,992			($22	)	$	10,970
	Lehman Brothers Special Financing, Inc.	2,900,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2028		10,875			(73,612	)		(62,737	)
	Merrill Lynch Capital Services, Inc.	1,952,519	BRL	CDI	Fixed 12.948%	Jan 2010		641			(3,797	)		(3,156	)
	Merrill Lynch Capital Services, Inc.	5,273,541	BRL	CDI	Fixed 11.430%	Jan 2010		—			(127,286	)		(127,286	)
	Merrill Lynch Capital Services, Inc.	19,300,000	USD	3 Month LIBOR	Fixed 4.000%	Dec 2010		76,759			99,674			176,433
	Merrill Lynch Capital Services, Inc.	5,276,854	BRL	CDI	Fixed 11.980%	Jan 2012		—			(163,281	)		(163,281	)
	Merrill Lynch Capital Services, Inc.	1,010,120	BRL	CDI	Fixed 14.765%	Jan 2012		6,608			10,497			17,105
	Merrill Lynch Capital Services, Inc.	400,000	GBP	Fixed 4.000%	6 Month LIBOR	Dec 2035		—			5,431			5,431
	Merrill Lynch Capital Services, Inc.	5,600,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		115,024			(230,913	)		(115,889	)
	Morgan Stanley Capital Services Inc.	4,763,489	BRL	CDI	Fixed 12.78%	Jan 2010		1,721			(22,423	)		(20,702	)
	Morgan Stanley Capital Services Inc.	3,577,309	BRL	CDI	Fixed 12.67%	Jan 2010		(4,653	)		(30,910	)		(35,563	)
	Morgan Stanley Capital Services Inc.	20,300,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2010		(54,505	)		154,769			100,264
	Morgan Stanley Capital Services Inc.	19,700,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2018		(181,571	)		(479,768	)		(661,339	)
	Morgan Stanley Capital Services Inc.	2,000,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2028		(20,000	)		(23,267	)		(43,267	)
	Morgan Stanley Capital Services Inc.	4,300,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		87,978			(176,964	)		(88,986	)
	The Royal Bank of Scotland PLC	5,100,000	GBP	6 Month LIBOR	Fixed 6.000%	Mar 2009		22,846			(16,137	)		6,709
	The Royal Bank of Scotland PLC	27,600,000	USD	3 Month LIBOR	Fixed 4.000%	Jun 2010		(64,722	)		201,041			136,319
	The Royal Bank of Scotland PLC	15,500,000	USD	3 Month LIBOR	Fixed 4.000%	Dec 2010		93,975			47,720			141,695
	The Royal Bank of Scotland PLC	2,000,000	EUR	FRCPXTOB	Fixed 1.955%	Mar 2012		—			(81,081	)		(81,081	)
	The Royal Bank of Scotland PLC	3,400,000	EUR	FRCPXTOB	Fixed 1.950%	Mar 2012		—			(139,871	)		(139,871	)
	The Royal Bank of Scotland PLC	2,900,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2028		20,532			(83,269	)		(62,737	)
	The Royal Bank of Scotland PLC	3,300,000	GBP	Fixed 4.000%	6 Month LIBOR	Dec 2036		473,912			975			474,887
	The Royal Bank of Scotland PLC	5,100,000	USD	Fixed 5.000%	3 Month LIBOR	Dec 2038		173,400			(278,942	)		(105,542	)
	UBS AG	3,588,444	BRL	CDI	Fixed 12.41%	Jan 2010		(5,790	)		(30,212	)		(36,002	)
	UBS AG	3,200,000	AUD	3 Month BBR-BBSW	Fixed 7.500%	Mar 2010		(8,927	)		30,292			21,365
	UBS AG	50,100,000	AUD	3 Month BBR-BBSW	Fixed 7.000%	Jun 2010		157,180			(20,501	)		136,679
	UBS AG	20,200,000	AUD	6 Month BBR-BBSW	Fixed 7.500%	Mar 2011		85,490			175,748			261,238
	UBS AG	6,361,914	BRL	CDI	Fixed 10.575%	Jan 2012		(125,504	)		(276,344	)		(401,848	)
							$	3,018,850			($3,719,789	)		($700,939	)

 

428

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

The Funds had the following credit default swap contracts open at August 31, 2008:

FUND	COUNTERPARTY	ISSUER	NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Active Bond
	UBS Securities	CDX.NA.IG.10	4,000,000	USD	Buy	(1.659)%	Jun 2013		($72,401	)	$	51,187			($21,214	)
									($72,401	)	$	51,187			($21,214	)
Global Bond
	Bank of America N.A.	GMAC LLC	600,000	USD	Sell	8.850%	Mar 2009		—		$	8,231		$	8,231
	Bank of America N.A.	Consumers Energy Company	900,000	USD	Buy	(0.090)%	Mar 2012		—			37,617			37,617
	Bank of America N.A.	Global Santa Fe Corporation	1,100,000	USD	Buy	(0.455)%	Jun 2012		—			(4,344	)		(4,344	)
	Bank of America N.A.	Loews Corporation	300,000	USD	Buy	(0.120)%	Jun 2012		—			2,643			2,643
	Bank of America N.A.	Xstrata Canada Corporation	3,000,000	USD	Buy	(0.910)%	Jun 2012		—			(14,668	)		(14,668	)
	Bank of America N.A.	Ford Motor Credit Company, LLC	1,000,000	USD	Sell	3.950%	Dec 2012		—			(256,968	)		(256,968	)
	Bank of America N.A.	Vivendi	2,000,000	USD	Buy	(1.280)%	Jun 2013		—			(19,604	)		(19,604	)
	Bank of America N.A.	Morgan Stanley	2,000,000	USD	Buy	(1.100)%	Jun 2015		—			107,720			107,720
	Bank of America N.A.	The Home Depot, Inc.	1,000,000	USD	Buy	(1.100)%	Mar 2016		—			32,954			32,954
	Bank of America N.A.	Lafarge	2,000,000	USD	Buy	(1.690)%	Sep 2016		—			64,642			64,642
	Bank of America N.A.	CDX.NA.IG.7	5,600,000	USD	Buy	(0.650)%	Dec 2016		($34,096	)		366,795			332,699
	Bank of America N.A.	Intuit, Inc.	2,000,000	USD	Buy	(1.380)%	Mar 2017		—			(57,490	)		(57,490	)
	Bank of America N.A.	McKesson Corporation	600,000	USD	Buy	(0.380)%	Mar 2017		—			10,236			10,236
	Bank of America N.A.	Autozone, Inc.	1,000,000	USD	Buy	(0.600)%	Jun 2017		—			35,791			35,791
	Bank of America N.A.	CDX.NA.IG.8	7,200,000	USD	Buy	(0.600)%	Jun 2017		96,705			329,402			426,107
	Barclays Bank PLC	SLM Corporation	900,000	USD	Sell	4.000%	Mar 2009		—			(4,694	)		(4,694	)
	Barclays Bank PLC	XL Capital Ltd.	700,000	USD	Buy	(0.310)%	Mar 2012		—			32,687			32,687
	Barclays Bank PLC	iTRAXX Europe Sub Financials Series 8 Version 1	7,800,000	EUR	Buy	(0.700)%	Dec 2012		8,614			317,355			325,969
	Barclays Bank PLC	Kingdom of Spain	17,600,000	USD	Sell	0.260%	Mar 2013		—			(55,750	)		(55,750	)
	Barclays Bank PLC	Autozone, Inc.	2,000,000	USD	Buy	(0.875)%	Jun 2013		—			7,940			7,940
	Barclays Bank PLC	CDX.NA.IG.10	27,000,000	USD	Buy	(1.550)%	Jun 2013		(214,258	)		(11,957	)		(226,215	)
	Barclays Bank PLC	The Goldman Sachs Group, Inc.	400,000	USD	Buy	(1.520)%	Jun 2013		—			(1,696	)		(1,696	)
	Barclays Bank PLC	Deutsche Bank Aktiengesellschaft	1,800,000	USD	Buy	(0.760)%	Sep 2013		—			8,583			8,583
	Barclays Bank PLC	Wachovia Bank	400,000	USD	Buy	(2.700)%	Sep 2013		—			(431	)		(431	)
	Barclays Bank PLC	Norfolk Southern	2,000,000	USD	Buy	(0.450)%	Sep 2014		—			1,486			1,486
	Barclays Bank PLC	iTRAXX Europe Hivol Series 6 Version 1	1,200,000	EUR	Buy	(0.850)%	Dec 2016		(7,394	)		86,766			79,372
	Barclays Bank PLC	Southwest Airlines Co.	500,000	USD	Buy	(0.640)%	Mar 2017		—			34,817			34,817
	Barclays Bank PLC	CDX.NA.IG.8	3,200,000	USD	Buy	(0.600)%	Jun 2017		109,247			80,113			189,360
	Barclays Bank PLC	CDX.NA.IG.8	22,100,000	USD	Buy	(0.600)%	Jun 2017		264,576			1,043,337			1,307,913
	Barclays Bank PLC	Citigroup, Inc.	6,000,000	USD	Buy	(0.870)%	Jun 2018		—			347,789			347,789
	Barclays Bank PLC	Citigroup, Inc.	2,700,000	USD	Buy	(1.350)%	Sep 2018		—			62,466			62,466
	Barclays Bank PLC	Wells Fargo & Company	3,300,000	USD	Buy	(1.030)%	Sep 2018		—			48,556			48,556
	BNP Paribas	iTRAXX Europe Hivol Series 6 Version 1	1,500,000	EUR	Buy	(0.850)%	Dec 2016		(9,045	)		108,260			99,215
	BNP Paribas	JP Morgan Chase & Co.	2,000,000	USD	Buy	(0.560)%	Dec 2017		—			79,425			79,425
	BNP Paribas	JP Morgan Chase & Co.	1,800,000	USD	Buy	(0.737)%	Mar 2018		—			48,764			48,764
	BNP Paribas	The Bear Stearns Companies, Inc.	2,000,000	USD	Buy	(2.180)%	Mar 2018		—			(163,905	)		(163,905	)
	BNP Paribas	Lehman Brothers Holdings, Inc.	2,200,000	USD	Buy	(1.550)%	Jun 2018		—			131,506			131,506
	Citibank N.A.	Ford Motor Credit Company, LLC	2,100,000	USD	Sell	7.500%	Mar 2009		—			16,378			16,378
	Citibank N.A.	GMAC LLC	500,000	USD	Sell	8.650%	Mar 2009		—			6,124			6,124
	Citibank N.A.	SLM Corporation	1,400,000	USD	Sell	4.300%	Mar 2009		—			(4,184	)		(4,184	)
	Citibank N.A.	Newell Rubbermaid, Inc.	600,000	USD	Buy	(0.130)%	Jun 2010		—			7,291			7,291
	Citibank N.A.	Sara Lee Corporation	500,000	USD	Buy	(0.330)%	Sep 2011		—			2,434			2,434
	Citibank N.A.	Autozone, Inc.	500,000	USD	Buy	(0.680)%	Dec 2012		—			4,787			4,787
	Citibank N.A.	HSBC Finance Corporation	1,700,000	USD	Buy	(0.430)%	Mar 2014		—			184,457			184,457
	Citibank N.A.	Nabors Industries, Inc.	2,000,000	USD	Buy	(0.820)%	Mar 2018		—			47,424			47,424
	Citibank N.A.	Pearson PLC	1,000,000	USD	Buy	(0.690)%	Jun 2018		—			744			744
	Credit Suisse International	GAZPROM	1,500,000	USD	Sell	1.330%	Dec 2008		—			4,047			4,047

429

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	ISSUER		NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond, continued
	Credit Suisse International	Russian Federation		1,000,000	USD	Sell	0.450%	Jan 2009		—			($95	)		($95	)
	Credit Suisse International	Johnson Controls, Inc.		600,000	USD	Buy	(0.240)%	Mar 2011		—			12,411			12,411
	Credit Suisse International	Sealed Air Corporation		700,000	USD	Buy	(0.500)%	Sep 2013		—			39,164			39,164
	Credit Suisse International	Masco Corporation		700,000	USD	Buy	(0.907)%	Dec 2016		—			84,126			84,126
	Credit Suisse International	ABX.HE.AA.06-1		800,000	USD	Sell	0.320%	Jul 2045		($286,349	)		(81,903	)		(368,252	)
	Deutsche Bank AG	GMAC LLC		700,000	USD	Sell	9.500%	Mar 2009		—			12,947			12,947
	Deutsche Bank AG	SLM Corporation		2,000,000	USD	Sell	3.050%	Mar 2009		—			(24,530	)		(24,530	)
	Deutsche Bank AG	J.C. Penney Company		800,000	USD	Buy	(0.270)%	Mar 2010		—			15,794			15,794
	Deutsche Bank AG	Nationwide Health Properties, Inc.		600,000	USD	Buy	(0.620)%	Sep 2011		—			21,252			21,252
	Deutsche Bank AG	CDX.NA.IG.10		13,700,000	USD	Buy	(1.550)%	Jun 2013		(116,234	)		1,451			(114,783	)
	Deutsche Bank AG	ACE Limited		300,000	USD	Buy	(0.390)%	Jun 2014		—			3,432			3,432
	Deutsche Bank AG	Tate & Lyle Public Limited Company		300,000	USD	Buy	(0.510)%	Dec 2014		—			20,390			20,390
	Deutsche Bank AG	CDX.NA.IG.8		9,400,000	USD	Buy	(0.600)%	Jun 2017		62,689			493,618			556,307
	Deutsche Bank AG	CDX.NA.IG.9		5,300,000	USD	Buy	(0.800)%	Dec 2017		190,058			31,294			221,352
	Deutsche Bank AG	JP Morgan Chase & Co	��	400,000	USD	Buy	(0.720)%	Mar 2018		—			11,351			11,351
	Deutsche Bank AG	iTRAXX Europe Series 9 Version 1		7,400,000	EUR	Buy	(1.750)%	Jun 2018		(656,772	)		73,704			(583,068	)
	Deutsche Bank AG	Lehman Brothers Holdings, Inc.		2,000,000	USD	Buy	(1.600)%	Jun 2018		—			110,157			110,157
	Deutsche Bank AG	Wea Finance, LLC		2,000,000	USD	Buy	(2.100)%	Jun 2018		—			28,830			28,830
	Deutsche Bank AG	Citigroup, Inc.		5,900,000	USD	Buy	(1.336)%	Sep 2018		—			142,497			142,497
	Deutsche Bank AG	Morgan Stanley		1,100,000	USD	Buy	(1.850)%	Sep 2018		—			19,320			19,320
	Deutsche Bank AG	ABX.HE.AAA.06-2		1,000,000	USD	Sell	0.110%	May 2046		(375,297	)		45,409			(329,888	)
	Goldman Sachs	General Electric Capital Corporation		1,500,000	USD	Sell	0.830%	Dec 2009		—			(3,323	)		(3,323	)
	Goldman Sachs	CDX.NA.IG.10		7,800,000	USD	Buy	(1.550)%	Jun 2013		(64,092	)		(1,259	)		(65,351	)
	Goldman Sachs	CDX.NA.IG.10		12,600,000	USD	Buy	(1.500)%	Jun 2018		(414,607	)		241,521			(173,086	)
	HSBC Bank	GAZPROM		3,000,000	USD	Sell	1.300%	Dec 2008		—			7,628			7,628
	HSBC Bank	GAZPROM		1,200,000	USD	Sell	1.500%	Jan 2009		—			2,848			2,848
	HSBC Bank	iTRAXX Europe Hivol Series 6 Version 1		500,000	EUR	Buy	(0.850)%	Dec 2016		(2,873	)		35,945			33,072
	JP Morgan Chase	Federative Republic of Brazil		2,700,000	USD	Sell	1.345%	Aug 2011		—			33,060			33,060
	JP Morgan Chase	CNA Financial Corporation		500,000	USD	Buy	(0.440)%	Sep 2011		—			7,928			7,928
	JP Morgan Chase	CNA Financial Corporation		600,000	USD	Buy	(0.440)%	Sep 2011		—			9,513			9,513
	JP Morgan Chase	Sabre Holdings Corporation		700,000	USD	Buy	(0.930)%	Sep 2011		—			155,959			155,959
	JP Morgan Chase	HJ Heinz Finance Co.		600,000	USD	Buy	(0.370)%	Mar 2012		—			1,233			1,233
	JP Morgan Chase	Diamond Offshore Drilling, Inc.		300,000	USD	Buy	(0.230)%	Jun 2012		—			3,847			3,847
	JP Morgan Chase	Nisource Finance Corporation		200,000	USD	Buy	(0.620)%	Sep 2014		—			11,582			11,582
	JP Morgan Chase	Loews Corporation		200,000	USD	Buy	(0.330)%	Mar 2016		—			2,177			2,177
	JP Morgan Chase	iTRAXX Europe Hivol Series 6 Version 1		300,000	EUR	Buy	(0.850)%	Dec 2016		(1,849	)		21,692			19,843
	JP Morgan Chase	Sprint Nextel Corporation		1,000,000	USD	Buy	(1.065)%	Dec 2016		—			104,073			104,073
	JP Morgan Chase	Morgan Stanley		1,500,000	USD	Buy	(1.830)%	Sep 2018		—			28,433			28,433
	Lehman Brothers Special Financing, Inc.	GAZPROM		2,000,000	USD	Sell	1.350%	Dec 2008		—			5,554			5,554
	Lehman Brothers Special Financing, Inc.	Ford Motor Credit Company, LLC		700,000	USD	Buy	(2.310)%	Jun 2010		—			124,482			124,482
	Lehman Brothers Special Financing, Inc.	Alcan, Inc.		700,000	USD	Buy	(0.140)%	Mar 2011		—			1,242			1,242
	Lehman Brothers Special Financing, Inc.	D.R. Horton, Inc.		900,000	USD	Buy	(3.950)%	Jun 2011		—			22,583			22,583
	Lehman Brothers Special Financing, Inc.	Federative Republic of Brazil		2,000,000	USD	Sell	1.370%	Aug 2011		—			25,913			25,913
	Lehman Brothers Special Financing, Inc.	Federative Republic of Brazil		5,000,000	USD	Sell	1.280%	Aug 2011		—			51,966			51,966
	Lehman Brothers Special Financing, Inc.	Federative Republic of Brazil		3,100,000	USD	Sell	1.350%	Aug 2011		—			38,369			38,369
	Lehman Brothers Special Financing, Inc.	CVS Corporation		700,000	USD	Buy	(0.210)%	Sep 2011		—			1,978			1,978
	Lehman Brothers Special Financing, Inc.	Ford Motor Credit Company, LLC		2,000,000	USD	Sell	3.650%	Dec 2012		—			(530,523	)		(530,523	)

430

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	ISSUER	NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond, continued
	Lehman Brothers Special Financing, Inc.	Barclays Bank PLC	200,000	EUR	Sell	1.480%	Mar 2013		—		$	3,537		$	3,537
	Lehman Brothers Special Financing, Inc.	Bellsouth Corporation	600,000	USD	Buy	(0.325)%	Sep 2014		—			787			787
	Lehman Brothers Special Financing, Inc.	ABX.HE.AAA.06-2	1,200,000	USD	Sell	0.110%	May 2046		($364,413	)		(37,452	)		(401,865	)
	Merrill Lynch Capital Services, Inc.	Xerox Corporation	800,000	USD	Buy	(0.130)%	Jan 2009		—			766			766
	Merrill Lynch Capital Services, Inc.	Boston Scientific Corporation	700,000	USD	Buy	(0.510)%	Jun 2011		—			18,010			18,010
	Merrill Lynch Capital Services, Inc.	Federative Republic of Brazil	4,000,000	USD	Sell	1.340%	Aug 2011		—			48,408			48,408
	Merrill Lynch Capital Services, Inc.	American General Finance Corp.	2,000,000	USD	Buy	(1.370)%	Dec 2017		—			438,412			438,412
	Morgan Stanley Capital Services Inc.	GAZPROM	900,000	USD	Sell	1.320%	Dec 2008		—			2,382			2,382
	Morgan Stanley Capital Services Inc.	Russian Federation	1,000,000	USD	Sell	0.460%	Jan 2009		—			(37	)		(37	)
	Morgan Stanley Capital Services Inc.	GAZPROM	100,000	USD	Sell	1.680%	Apr 2009		—			849			849
	Morgan Stanley Capital Services Inc.	GAZPROM	800,000	USD	Sell	1.710%	Apr 2009		—			6,927			6,927
	Morgan Stanley Capital Services Inc.	Federative Republic of Brazil	4,100,000	USD	Sell	1.380%	Aug 2011		—			54,290			54,290
	Morgan Stanley Capital Services Inc.	Alcoa, Inc.	2,000,000	USD	Buy	(0.850)%	Mar 2012		—			18,192			18,192
	Morgan Stanley Capital Services Inc.	Lockheed Martin Corporation	700,000	USD	Buy	(0.089)%	Jun 2012		—			3,757			3,757
	Morgan Stanley Capital Services Inc.	CDX.NA.IG.10	3,600,000	USD	Buy	(1.550)%	Jun 2013		(24,814	)		(5,348	)		(30,162	)
	Morgan Stanley Capital Services Inc.	Simon Property Group, L.P.	1,000,000	USD	Buy	(1.047)%	Jun 2016		—			35,408			35,408
	Morgan Stanley Capital Services Inc.	Motorola, Inc.	700,000	USD	Buy	(0.725)%	Dec 2017		—			85,016			85,016
	Morgan Stanley Capital Services Inc.	Amgen, Inc.	3,000,000	USD	Buy	(1.030)%	Jun 2018		—			(101,489	)		(101,489	)
	Royal Bank of Canada	Daimler Chrysler AG	600,000	USD	Buy	(0.350)%	Jun 2009		—			589			589
	Royal Bank of Canada	JP Morgan Chase & Co.	600,000	USD	Buy	(0.310)%	Mar 2016		—			48,165			48,165
	The Royal Bank of Scotland PLC	Deutsche Bank Aktiengesellschaft	2,500,000	USD	Sell	0.550%	Dec 2008		—			4,693			4,693
	The Royal Bank of Scotland PLC	Daimler Chrysler AG	300,000	USD	Buy	(0.620)%	Sep 2011		—			2,532			2,532
	The Royal Bank of Scotland PLC	Glitnir Banki HF	600,000	USD	Buy	(0.290)%	Mar 2012		—			140,384			140,384
	The Royal Bank of Scotland PLC	Glitnir Banki HF	700,000	USD	Buy	(0.290)%	Mar 2012		—			163,782			163,782
	The Royal Bank of Scotland PLC	Autozone, Inc.	2,000,000	USD	Buy	(0.920)%	Jun 2013		—			3,908			3,908
	The Royal Bank of Scotland PLC	Radioshack Corporation	2,600,000	USD	Buy	(1.430)%	Jun 2013		—			62,104			62,104
	The Royal Bank of Scotland PLC	Morgan Stanley	600,000	USD	Buy	(0.320)%	Dec 2016		—			67,413			67,413
	The Royal Bank of Scotland PLC	The Bear Stearns Companies, Inc.	2,400,000	USD	Buy	(2.223)%	Mar 2018		—			(204,481	)		(204,481	)
	UBS AG	Capital One Financial Corporation	600,000	USD	Buy	(0.350)%	Sep 2011		—			71,004			71,004
	UBS AG	BAE Systems PLC	700,000	USD	Buy	(0.140)%	Dec 2011		—			7,825			7,825
	UBS AG	Whirlpool Corporation	1,400,000	USD	Buy	(0.840)%	Jun 2013		—			36,053			36,053
	UBS AG	JP Morgan Chase & Co	1,200,000	USD	Buy	(0.730)%	Mar 2018		—			33,145			33,145
	Wachovia Bank N.A.	Global Santa Fe Corporation	400,000	USD	Buy	(0.520)%	Jun 2012		—			(2,559	)		(2,559	)
	Wachovia Bank N.A.	American Electric Power Company, Inc.	2,000,000	USD	Buy	(0.450)%	Jun 2015		—			10,308			10,308
									($1,840,204	)	$	5,596,196		$	3,755,992

431

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	ISSUER	NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Investment Quality Bond
	Goldman Sachs	CDS M 2.7 09-13	650,000	USD	Buy	(2.700)%	Sep 2013		—			($3,597	)		($3,597	)
									—			($3,597	)		($3,597	)
Real Return Bond
	Bank of America N.A.	CDX.NA.HY.8	2,475,000	USD	Buy	(2.750)%	Jun 2012	$	47,597		$	185,639		$	233,236
	Bank of America N.A.	CDX.NA.IG.8	2,200,000	USD	Buy	(0.350)%	Jun 2012		24,292			71,673			95,965
	Bank of America N.A.	GMAC LLC	600,000	USD	Sell	7.000%	Sep 2012		—			(159,064	)		(159,064	)
	Bank of America N.A.	Merrill Lynch & Co., Inc.	1,100,000	USD	Buy	(0.950)%	Dec 2012		—			86,763			86,763
	Bank of America N.A.	YUM! Brands, Inc.	2,000,000	USD	Buy	(1.245)%	Mar 2018		—			1,144			1,144
	Barclays Bank PLC	Republic of Panama	2,100,000	USD	Sell	0.300%	Dec 2008		—			41			41
	Barclays Bank PLC	Republic of Peru	1,100,000	USD	Sell	0.350%	Dec 2008		—			1,328			1,328
	Barclays Bank PLC	Russian Federation	1,100,000	USD	Sell	0.330%	Dec 2008		—			(445	)		(445	)
	Barclays Bank PLC	Ukraine	1,100,000	USD	Sell	0.780%	Dec 2008		—			(2,953	)		(2,953	)
	Barclays Bank PLC	CDX.NA.HY.8	3,168,000	USD	Buy	(2.750)%	Jun 2012		107,650			190,892			298,542
	Barclays Bank PLC	Ford Motor Credit Company LLC	500,000	USD	Sell	3.800%	Sep 2012		—			(127,197	)		(127,197	)
	Barclays Bank PLC	GMAC LLC	200,000	USD	Sell	3.050%	Sep 2012		—			(70,939	)		(70,939	)
	Barclays Bank PLC	General Electric Captial Corporation	300,000	USD	Sell	1.010%	Mar 2013		—			(6,533	)		(6,533	)
	Barclays Bank PLC	The Black & Decker Corporation	1,000,000	USD	Buy	(1.180)%	Dec 2014		—			13,307			13,307
	Barclays Bank PLC	CDX.NA.IG.9	1,800,000	USD	Buy	(6.550)%	Dec 2017		—			141,983			141,983
	Barclays Bank PLC	CDX.NA.IG.9	6,300,000	USD	Buy	(0.800)%	Dec 2017		64,613			198,281			262,894
	BNP Paribas	Lehman Brothers Holdings, Inc.	300,000	USD	Sell	1.120%	Sep 2012		—			(23,677	)		(23,677	)
	BNP Paribas	Lehman Brothers Holdings, Inc.	300,000	USD	Sell	1.200%	Sep 2012		—			(22,839	)		(22,839	)
	BNP Paribas	Federal National Mortgage Association	1,000,000	USD	Sell	1.4014%	Mar 2013		—			(25,889	)		(25,889	)
	BNP Paribas	International Lease Finance Corporation	600,000	USD	Buy	(1.600)%	Dec 2013		—			59,293			59,293
	BNP Paribas	The Bear Stearns Companies, Inc.	1,000,000	USD	Buy	(2.180)%	Mar 2018		—			(82,048	)		(82,048	)
	BNP Paribas	Citigroup, Inc.	200,000	USD	Buy	(0.900)%	Jun 2018		—			11,140			11,140
	Citibank N.A.	The Bear Stearns Companies, Inc.	1,100,000	USD	Sell	0.720%	Sep 2012		—			(13,861	)		(13,861	)
	Citibank N.A.	Sherwin-Williams Co.	900,000	USD	Buy	(0.290)%	Dec 2012		—			18,205			18,205
	Citibank N.A.	V.F. Corporation	900,000	USD	Buy	(0.250)%	Dec 2012		—			15,094			15,094
	Citibank N.A.	GATX Corporation	1,000,000	USD	Buy	(1.070)%	Mar 2016		—			36,386			36,386
	Citibank N.A.	Omnicom Group, Inc.	1,250,000	USD	Buy	(0.940)%	Jun 2016		—			(46,321	)		(46,321	)
	Credit Suisse International	Chesapeake Energy Corporation	150,000	USD	Sell	2.100%	Sep 2013		—			(3,249	)		(3,249	)
	Credit Suisse International	Chesapeake Energy Corporation	1,050,000	USD	Sell	2.100%	Sep 2013		—			(22,221	)		(22,221	)
	Deutsche Bank AG	GMAC LLC	200,000	USD	Buy	(4.250)%	Sep 2008		—			(1,027	)		(1,027	)
	Deutsche Bank AG	Republic of Indonesia	2,200,000	USD	Sell	0.510%	Dec 2008		—			1,002			1,002
	Deutsche Bank AG	Russian Federation	1,000,000	USD	Sell	0.325%	Dec 2008		—			(431	)		(431	)
	Deutsche Bank AG	Ukraine	1,000,000	USD	Sell	0.790%	Dec 2008		—			(2,633	)		(2,633	)
	Deutsche Bank AG	CDX.NA.HY.8	3,465,000	USD	Buy	(2.750)%	Jun 2012		126,667			199,863			326,530
	Deutsche Bank AG	CDX.NA.HY.9	700,000	USD	Sell	6.350%	Dec 2012		—			53,456			53,456
	Deutsche Bank AG	CDX.NA.IG.9	400,000	USD	Sell	0.990%	Dec 2012		—			2,137			2,137
	Deutsche Bank AG	American International Group, Inc.	1,200,000	USD	Sell	1.992%	Mar 2013		—			(72,388	)		(72,388	)
	Deutsche Bank AG	CDX.NA.IG.10	48,800,000	USD	Buy	(1.550)%	Jun 2013		(400,181	)		(10,492	)		(410,673	)
	Deutsche Bank AG	Home Depot, Inc.	1,250,000	USD	Buy	(1.565)%	Mar 2016		—			5,683			5,683
	Deutsche Bank AG	Macy’s, Inc.	1,000,000	USD	Buy	(2.100)%	Sep 2017		—			29,794			29,794
	Goldman Sachs	GMAC LLC	4,800,000	USD	Buy	(5.050)%	Sep 2008		—			(35,080	)		(35,080	)
	Goldman Sachs	GMAC LLC	900,000	USD	Sell	3.050%	Sep 2012		—			(319,227	)		(319,227	)
	Goldman Sachs	GMAC LLC	4,800,000	USD	Sell	5.350%	Sep 2012		—			(1,452,144	)		(1,452,144	)
	Goldman Sachs	AutoZone, Inc.	900,000	USD	Buy	(0.380)%	Dec 2012		—			19,665			19,665
	Goldman Sachs	Kohls Corporation	900,000	USD	Buy	(0.590)%	Dec 2012		—			26,796			26,796
	Goldman Sachs	Nordstrom, Inc.	900,000	USD	Buy	(0.360)%	Dec 2012		—			34,448			34,448

432

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	ISSUER	NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Real Return Bond, continued
	Goldman Sachs	The Bear Stearns Companies, Inc.	600,000	USD	Buy	(1.780)%	Dec 2012		—			($17,839	)		($17,839	)
	Goldman Sachs	The TJX Companies, Inc.	900,000	USD	Buy	(0.380)%	Dec 2012		—			6,297			6,297
	Goldman Sachs	CDX.NA.IG.10	15,600,000	USD	Buy	(1.550)%	Jun 2013		($153,324	)		22,506			(130,818	)
	Goldman Sachs	RPM International, Inc.	1,000,000	USD	Buy	(1.500)%	Mar 2018		—			(27,444	)		(27,444	)
	Goldman Sachs	CDX.NA.IG.10	1,800,000	USD	Buy	(1.500)%	Jun 2018		(49,901	)		25,174			(24,727	)
	JP Morgan Chase	Qwest Capital Funding, Inc.	1,000,000	USD	Buy	(3.250)%	Sep 2009		—			(2,998	)		(2,998	)
	JP Morgan Chase	Capital One Financial Corporation	1,000,000	USD	Buy	(1.210)%	Sep 2012		—			106,484			106,484
	JP Morgan Chase	CDX.NA.HY.9	1,485,000	USD	Buy	(3.750)%	Dec 2012		22,724			116,263			138,987
	Lehman Brothers Special Financing, Inc.	Republic of Peru	1,000,000	USD	Sell	0.370%	Dec 2008		—			401			401
	Lehman Brothers Special Financing, Inc.	CDX.NA.HY.9	2,400,000	USD	Sell	3.330%	Dec 2012		—			13,106			13,106
	Lehman Brothers Special Financing, Inc.	CDX.NA.IG.9	33,500,000	USD	Buy	(0.600)%	Dec 2012		177,664			(439,362	)		(261,698	)
	Lehman Brothers Special Financing, Inc.	CDX.NA.IG.9	8,300,000	USD	Buy	(0.800)%	Dec 2017		(23,274	)		(134,269	)		(157,543	)
	Merrill Lynch Capital Services, Inc.	CDX.NA.HY.8	3,663,000	USD	Buy	(2.750)%	Jun 2012		80,168			265,021			345,189
	Merrill Lynch Capital Services, Inc.	CDX.NA.HY.9	600,000	USD	Sell	6.510%	Dec 2012		—			28,221			28,221
	Merrill Lynch Capital Services, Inc.	CDX.NA.HY.9	500,000	USD	Sell	6.690%	Dec 2012		—			27,061			27,061
	Merrill Lynch Capital Services, Inc.	CDX.NA.IG.9	22,500,000	USD	Buy	(0.600)%	Dec 2012		(55,848	)		815,946			760,098
	Merrill Lynch Capital Services, Inc.	Merrill Lynch & Co., Inc.	600,000	USD	Buy	(0.920)%	Dec 2012		—			48,004			48,004
	Merrill Lynch Capital Services, Inc.	CDX.NA.IG.10	16,700,000	USD	Buy	(1.550)%	Jun 2013		(93,494	)		(46,128	)		(139,622	)
	Morgan Stanley Capital Services Inc.	CDX.NA.HY.8	1,673,100	USD	Buy	(2.750)%	Jun 2012		57,378			100,289			157,667
	Morgan Stanley Capital Services Inc.	GMAC LLC	500,000	USD	Sell	6.850%	Jun 2012		—			(132,270	)		(132,270	)
	Morgan Stanley Capital Services Inc.	Ford Motor Credit Company LLC	700,000	USD	Sell	3.800%	Sep 2012		—			(178,076	)		(178,076	)
	Morgan Stanley Capital Services Inc.	CDX.NA.HY.9	1,000,000	USD	Sell	6.570%	Dec 2012		—			49,398			49,398
	Morgan Stanley Capital Services Inc.	CDX.NA.IG.9	200,000	USD	Sell	1.130%	Dec 2012		—			2,240			2,240
	Morgan Stanley Capital Services Inc.	Staples, Inc.	900,000	USD	Buy	(0.530)%	Dec 2012		—			26,063			26,063
	Morgan Stanley Capital Services Inc.	The Black & Decker Corporation	900,000	USD	Buy	(0.490)%	Dec 2012		—			29,560			29,560
	Morgan Stanley Capital Services Inc.	Whirlpool Corporation	900,000	USD	Buy	(0.490)%	Dec 2012		—			30,215			30,215
	Morgan Stanley Capital Services Inc.	CDX.NA.IG.10	13,300,000	USD	Buy	(1.550)%	Jun 2013		(68,432	)		(43,369	)		(111,801	)
	Morgan Stanley Capital Services Inc.	Pearson PLC	2,500,000	USD	Buy	(0.750)%	Jun 2014		—			(19,254	)		(19,254	)
	Morgan Stanley Capital Services Inc.	CDX.NA.IG.9	6,100,000	USD	Buy	(0.800)%	Dec 2017		113,841			140,708			254,549
	Morgan Stanley Capital Services Inc.	Target Corporation	1,000,000	USD	Buy	(1.200)%	Mar 2018		—			(31,898	)		(31,898	)
	Morgan Stanley Capital Services Inc.	CMBX.NA.AAA.3	5,060,000	USD	Sell	0.080%	Dec 2049		(810,327	)		277,692			(532,635	)
	The Royal Bank of Scotland PLC	Lehman Brothers Holdings, Inc.	600,000	USD	Sell	0.660%	Sep 2012		—			(56,982	)		(56,982	)
	The Royal Bank of Scotland PLC	Macy’s, Inc.	1,000,000	USD	Buy	(2.111)%	Dec 2016		—			27,361			27,361
	UBS AG	CDX.NA.HY.8	5,148,000	USD	Buy	(2.750)%	Jun 2012		278,004			207,126			485,130
	UBS AG	GMAC LLC	900,000	USD	Buy	(4.850)%	Sep 2012		—			282,484			282,484
	UBS AG	Dominion Resources, Inc.	1,000,000	USD	Buy	(0.590)%	Mar 2014		—			(3,921	)		(3,921	)
	UBS AG	Citigroup, Inc.	200,000	USD	Buy	(0.850)%	Jun 2018		—			11,890			11,890
									($554,183	)	$	429,055			($125,128	)

433

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	ISSUER	NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Spectrum Income
	JP Morgan Chase Bank, N.A.	Compagnie de St-Gobain	60,000	EUR	Buy	(0.240)%	Jun 2012		—			($5,065	)		($5,065	)
	JP Morgan Chase Bank, N.A.	Holcim Ltd.	60,000	EUR	Buy	(0.240)%	Jun 2012		—			4,788			4,788
	JP Morgan Chase Bank, N.A.	Kelda Group Plc	50,000	EUR	Buy	(0.240)%	Jun 2012		—			(4,959	)		(4,959	)
	JP Morgan Chase Bank, N.A.	United Utilities Plc	100,000	EUR	Buy	(0.950)%	Mar 2013		—			(2,407	)		(2,407	)
	JP Morgan Chase Bank, N.A.	Halyk Bank	130,000	USD	Sell	2.750%	Dec 2012		—			(10,038	)		(10,038	)
	JP Morgan Chase Bank, N.A.	Replublic of Ukraine	250,000	USD	Sell	2.410%	Dec 2012		—			(14,757	)		(14,757	)
	JP Morgan Chase Bank, N.A.	Rentokil Initial Plc	50,000	EUR	Buy	(2.580)%	Mar 2013		—			1,910			1,910
	JP Morgan Chase Bank, N.A.	Electrolux AB	75,000	EUR	Buy	(1.180)%	Jun 2013		—			668			668
									—			($29,860	)		($29,860	)
Total Return
	Bank of America N.A.	General Motors Corporation	5,000,000	USD	Sell	8.950%	Mar 2013		—			($1,648,089	)		($1,648,089	)
	Barclays Bank PLC	SLM Corporation	300,000	USD	Sell	5.100%	Jun 2009		—			1,202			1,202
	Barclays Bank PLC	General Electric Capital Corporation	3,900,000	USD	Sell	0.620%	Mar 2011		—			(68,694	)		(68,694	)
	Barclays Bank PLC	Ford Motor Credit Company LLC	2,500,000	USD	Sell	4.150%	Sep 2012		—			(612,887	)		(612,887	)
	Barclays Bank PLC	GMAC LLC	2,500,000	USD	Sell	3.650%	Sep 2012		—			(853,123	)		(853,123	)
	Barclays Bank PLC	GMAC LLC	1,300,000	USD	Sell	4.800%	Sep 2012		—			(409,781	)		(409,781	)
	Barclays Bank PLC	CDX.NA.IG.9	15,500,000	USD	Sell	0.758%	Dec 2012		—			210,240			210,240
	Barclays Bank PLC	GAZPROM	5,300,000	USD	Sell	1.600%	Dec 2012		—			(162,225	)		(162,225	)
	Barclays Bank PLC	General Electric Capital Corporation	3,900,000	USD	Sell	0.640%	Dec 2012		—			(134,723	)		(134,723	)
	Barclays Bank PLC	General Motors Corporation	200,000	USD	Sell	4.800%	Dec 2012		—			(85,156	)		(85,156	)
	Barclays Bank PLC	Federal Home Loan Mortgage Corporation	3,600,000	USD	Sell	0.720%	Mar 2013		—			57,534			57,534
	Barclays Bank PLC	CDX.NA.IG.10	3,600,000	USD	Buy	(1.550)%	Jun 2013		($18,802	)		(11,360	)		(30,162	)
	Citibank N.A.	General Electric Capital Corporation	300,000	USD	Sell	0.750%	Mar 2009		—			35			35
	Citibank N.A.	Lehman Brothers Holdings Inc.	300,000	USD	Sell	8.250%	Sep 2009		—			7,899			7,899
	Citibank N.A.	General Electric Captial Corporation	200,000	USD	Sell	1.100%	Mar 2010		—			(205	)		(205	)
	Citibank N.A.	General Electric Captial Corporation	100,000	USD	Sell	1.150%	Mar 2010		—			90			90
	Citibank N.A.	CDX.NA.HY.8	5,961,924	USD	Sell	0.355%	Jun 2012		—			(197,964	)		(197,964	)
	Citibank N.A.	CDX.NA.HY.8	4,968,270	USD	Sell	0.360%	Jun 2012		—			(164,122	)		(164,122	)
	Citibank N.A.	CDX.NA.HY.8	1,391,116	USD	Sell	0.401%	Jun 2012		—			(44,006	)		(44,006	)
	Citibank N.A.	CDX.NA.HY.8	700,000	USD	Sell	2.144%	Jun 2012		—			(46,755	)		(46,755	)
	Citibank N.A.	CDX.NA.HY.8	600,000	USD	Sell	2.179%	Jun 2012		—			(39,315	)		(39,315	)
	Citibank N.A.	General Motors Corporation	500,000	USD	Sell	4.600%	Dec 2012		—			(215,224	)		(215,224	)
	Credit Suisse International	GAZPROM	1,000,000	USD	Sell	1.000%	Nov 2008		—			2,143			2,143
	Credit Suisse International	CDX.NA.IG.10	7,600,000	USD	Buy	(1.550)%	Jun 2013		(28,566	)		(35,109	)		(63,675	)
	Deutsche Bank AG	Republic of Panama	900,000	USD	Sell	0.250%	Dec 2008		—			(216	)		(216	)
	Deutsche Bank AG	Ford Motor Credit Company LLC	1,000,000	USD	Sell	5.650%	Sep 2012		—			(204,842	)		(204,842	)
	Deutsche Bank AG	CDX.NA.IG.9	10,200,000	USD	Sell	0.708%	Dec 2012		—			116,838			116,838
	Deutsche Bank AG	General Motors Corporation	500,000	USD	Sell	4.500%	Dec 2012		—			(216,392	)		(216,392	)
	Deutsche Bank AG	Berkshire Hathaway Finance Corp.	1,600,000	USD	Sell	0.850%	Mar 2013		—			(8,331	)		(8,331	)
	Deutsche Bank AG	CDX.NA.HY.10	13,200,000	USD	Buy	(5.000)%	Jun 2013		934,329			(103,443	)		830,886
	Deutsche Bank AG	CDX.NA.IG.10	2,000,000	USD	Sell	0.530%	Jun 2013		—			2,357			2,357
	Deutsche Bank AG	CDX.NA.IG.10	35,000,000	USD	Buy	(1.550)%	Jun 2013		(183,674	)		(109,567	)		(293,241	)
	Goldman Sachs	General Electric Capital Corporation	500,000	USD	Sell	0.830%	Dec 2009		—			(1,108	)		(1,108	)
	Goldman Sachs	CDX.NA.IG.10	2,500,000	USD	Sell	0.463%	Jun 2013		—			(4,768	)		(4,768	)
	Goldman Sachs	CDX.NA.IG.10	37,600,000	USD	Buy	(1.550)%	Jun 2013		(472,286	)		157,261			(315,025	)
	Goldman Sachs	CDX.NA.IG.9	900,000	USD	Sell	0.548%	Dec 2017		—			721			721
	Goldman Sachs	CDX.NA.IG.9	1,600,000	USD	Sell	0.555%	Dec 2017		—			2,219			2,219
	HSBC Bank	GAZPROM	200,000	USD	Sell	0.970%	Nov 2008		—			395			395
	HSBC Bank	Ukraine Government	4,200,000	USD	Sell	0.730%	Apr 2009		—			(29,496	)		(29,496	)
	JP Morgan Chase	CDX.NA.IG.9	2,000,000	USD	Sell	0.553%	Dec 2017		—			2,383			2,383

434

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	COUNTERPARTY	ISSUER	NOTIONAL AMOUNT	CURRENCY	BUY/SELL PROTECTION †	(PAY)/ RECEIVED FIXED RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Total Return, continued
	Lehman Brothers Special Financing, Inc.	Ukraine Government	2,000,000	USD	Sell	0.700%	Dec 2008		—			($6,201	)		($6,201	)
	Lehman Brothers Special Financing, Inc.	General Electric Captial Corporation	2,500,000	USD	Sell	1.135%	Dec 2009		—			3,625			3,625
	Lehman Brothers Special Financing, Inc.	Federative Republic of Brazil	10,300,000	USD	Sell	1.120%	Nov 2011		—			77,499			77,499
	Merrill Lynch Capital Services, Inc.	GMAC LLC	3,200,000	USD	Sell	1.850%	Sep 2009		—			(527,335	)		(527,335	)
	Merrill Lynch Capital Services, Inc.	General Electric Captial Corporation	4,300,000	USD	Sell	1.080%	Dec 2009		—			3,924			3,924
	Merrill Lynch Capital Services, Inc.	CDX.NA.HY.8	1,300,000	USD	Sell	1.833%	Jun 2012		—			(101,476	)		(101,476	)
	Merrill Lynch Capital Services, Inc.	CDX.NA.HY.10	41,200,000	USD	Buy	(5.000)%	Jun 2013	$	2,876,628			(283,256	)		2,593,372
	Morgan Stanley Capital Services Inc.	General Electric Captial Corporation	200,000	USD	Sell	0.950%	Jan 2009		—			306			306
	Morgan Stanley Capital Services Inc.	CDX.NA.HY.8	1,300,000	USD	Sell	2.080%	Jun 2012		—			(89,845	)		(89,845	)
	Morgan Stanley Capital Services Inc.	Russian Federation	3,400,000	USD	Sell	0.795%	Aug 2012		—			(53,729	)		(53,729	)
	Morgan Stanley Capital Services Inc.	CDX.NA.IG.9	3,900,000	USD	Sell	0.963%	Dec 2012		—			16,260			16,260
	Morgan Stanley Capital Services Inc.	GAZPROM	1,000,000	USD	Sell	2.180%	Feb 2013		—			(12,512	)		(12,512	)
	Morgan Stanley Capital Services Inc.	Federative Republic of Brazil	900,000	USD	Sell	1.660%	Mar 2013		—			23,530			23,530
	Morgan Stanley Capital Services Inc.	CDX.NA.HY.10	10,100,000	USD	Buy	(5.000)%	Jun 2013		716,671			(80,917	)		635,754
	Morgan Stanley Capital Services Inc.	CDX.NA.IG.10	29,000,000	USD	Buy	(1.550)%	Jun 2013		(300,756	)		57,784			(242,972	)
	Morgan Stanley Capital Services Inc.	CMBX.NA.AAA.3	14,200,000	USD	Sell	0.080%	Dec 2049		(2,164,088	)		669,633			(1,494,455	)
	The Royal Bank of Scotland PLC	Deutsche Bank Aktiengesellschaft	10,300,000	USD	Sell	0.550%	Dec 2008		—			19,336			19,336
	The Royal Bank of Scotland PLC	Republic of Indonesia	2,000,000	USD	Sell	0.450%	Jun 2009		—			(4,915	)		(4,915	)
	The Royal Bank of Scotland PLC	General Electric Capital Corporation	600,000	USD	Sell	1.100%	Sep 2009		—			1,511			1,511
	The Royal Bank of Scotland PLC	American International Group, Inc.	4,200,000	USD	Sell	1.958%	Mar 2013		—			(259,091	)		(259,091	)
	The Royal Bank of Scotland PLC	Bank of America Corporation	3,200,000	USD	Sell	0.820%	Mar 2013		—			(45,751	)		(45,751	)
	The Royal Bank of Scotland PLC	CDX.NA.HY.10	11,800,000	USD	Buy	(5.000)%	Jun 2013		866,149			(123,387	)		742,762
	UBS AG	Wells Fargo & Company	2,400,000	USD	Sell	0.800%	Sep 2009		—			2,034			2,034
	UBS AG	GAZPROM	1,000,000	USD	Sell	2.180%	Feb 2013		—			(12,512	)		(12,512	)
								$	2,225,605			($5,571,069	)		($3,345,464	)

 

† If the Fund is a Seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will pay to the Buyer of the protection an amount up to the notional value of the swap and in certain instances, take delivery of the security.

435

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

The Funds had the following interest rate caps and floors open at August 31, 2008:

FUND	Counterparty	NOTIONAL AMOUNT	CURRENCY	PAY/RECEIVE FLOATING RATE	FLOATING RATE INDEX	CAP/ FLOOR	STRIKE RATE	TERMINATION DATE	UNAMORTIZED UPFRONT PAYMENT MADE (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond
	Merrill Lynch Capital Services, Inc.	5,000,000	USD	Receive*	USD-CMM30-FNMA rate	Cap	5.500%	May 2009	$	22,580		$	76,143		$	98,723
									$	22,580		$	76,143		$	98,723
Total Return
	JP Morgan Chase	3,700,000	EUR	Pay	10/2-Year CMS EUR-ISDA EURIBOR rate spread	Floor	(0.750%)	Dec 2008		($53,646	)	$	22,227			($31,419	)
	Merrill Lynch Capital Services, Inc.	4,600,000	USD	Receive*	USD-CMM30-FNMA rate	Cap	5.000%	Feb 2009		314,586			(939	)		313,647
	Merrill Lynch Capital Services, Inc.	5,600,000	USD	Receive*	USD-CMM30-FNMA rate	Cap	5.500%	May 2009		25,290			85,279			110,569
									$	286,230		$	106,567		$	392,797

 

* The Fund will receive payment if the floating rate index is above the strike rate. If the floating rate index is below the strike rate, the Fund will pay the counterparty.

 

BBR — Bank Bill Rate

BBSW — Bank Bill Swap Rate

CD KSDA — Korea Securities Dealers Association

CDI — Brazil Interbank Deposit Rate

CPI-U — Non-revised Consumer Price Index — Urban

EURIBOR — Euro Interbank Offered Rate

FRCPXTOB — French CPI Ex Tobacco Daily Reference Index

KW-CDC — 3 month South Korean Wan

LIBOR — London Interbank Offered Rate

Currency symbols are defined as follows:

AUD Australian Dollar

BRL Brazilian Real

CAD Canadian Dollar

EUR European Currency

GBP British Pound

JPY Japanese Yen

KRW Korean Won

MXN Mexican Peso

USD U.S. Dollar

Forward Foreign Currency Contracts  All Funds described in this Annual Report may purchase and sell forward foreign currency contracts in order to hedge a specific transaction or Fund position. Forward foreign currency contracts are valued at forward foreign currency exchange rates and marked to market daily. Net realized gains and losses on foreign currency and forward foreign currency contracts are recorded in the Statements of Operations and include net gains or losses realized by a Fund on contracts that have matured.

The net U.S. dollar value of foreign currency underlying all contractual commitments held at the end of the period, the resulting net unrealized appreciation (depreciation) and related net receivable or payable amounts are determined using forward foreign currency exchange rates supplied by a quotation service. The Funds could be exposed to risks in excess of amounts recognized on the Statements of Assets and Liabilities if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the forward foreign currency contract changes unfavorably.

At August 31, 2008, certain Funds entered into forward foreign currency contracts, which contractually obligate the Funds to deliver currencies at future dates. Open forward foreign currency contracts at August 31, 2008, were as follows:

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Active Bond	BUYS
	Canadian Dollar		364,783		9/30/08		($13,597	)
							($13,597	)
	SELLS
	Canadian Dollar		357,998		9/30/08	$	14,589
						$	14,589
Global Bond	BUYS
	Australian Dollar		658,000		9/18/08		($29,813	)
	Brazilian Real		2,787,740		12/2/08		171,181
	Brazilian Real		12,357,599		12/2/08		187,718
	Canadian Dollar		270,000		9/22/08		334
	Canadian Dollar		1,143,000		9/22/08		(9,674	)

436

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Global Bond, continued	BUYS
	Canadian Dollar		1,175,109		9/22/08		($9,622	)
	Chilean Peso		112,100,000		12/10/08		(14,755	)
	Chinese Yuan Renminbi		14,023,598		11/13/08		1,429
	Chinese Yuan Renminbi		5,699,130		3/2/09		32,065
	Chinese Yuan Renminbi		21,385,752		5/6/09		(83,739	)
	Chinese Yuan Renminbi		33,591,692		5/6/09		(131,178	)
	Chinese Yuan Renminbi		7,702,655		5/6/09		(13,382	)
	Chinese Yuan Renminbi		7,489,920		5/6/09		(12,078	)
	Chinese Yuan Renminbi		6,754,871		5/6/09		(22,592	)
	Chinese Yuan Renminbi		981,648		7/15/09		(5,986	)
	Chinese Yuan Renminbi		6,521,690		5/17/10		(63,664	)
	Chinese Yuan Renminbi		7,353,720		5/17/10		(67,935	)
	Danish Krone		9,550,000		9/9/08		(94,176	)
	Euro		3,779,000		9/25/08		(43,605	)
	Euro		90,254,000		9/25/08		(1,848,743	)
	Euro		338,000		9/25/08		(6,490	)
	Euro		1,878,000		9/25/08		(37,445	)
	Hungarian Forint		600,440		11/19/08		(89	)
	Indian Rupee		21,903,830		11/12/08		(17,032	)
	Indian Rupee		31,255,717		11/12/08		(63,533	)
	Indian Rupee		79,194,150		11/12/08		(163,383	)
	Indian Rupee		106,290,983		11/12/08		(215,860	)
	Japanese Yen		11,186,312,000		9/8/08		(1,660,279	)
	Japanese Yen		262,036,000		9/8/08		28,482
	Japanese Yen		6,393,759,000		9/8/08		(606,344	)
	Japanese Yen		192,472,360		9/8/08		(9,399	)
	Malaysian Ringgit		11,301,590		11/12/08		(279,724	)
	Malaysian Ringgit		17,746,560		11/12/08		(451,976	)
	Malaysian Ringgit		19,314,171		11/12/08		(497,461	)
	Mexican Peso		93,658		11/19/08		(1	)
	Mexican Peso		62,000		11/19/08		62
	Mexican Peso		62,000		11/19/08		65
	Mexican Peso		66,647		11/19/08		124
	Philippine Peso		26,000,000		11/12/08		(24,500	)
	Philippine Peso		26,500,000		11/12/08		(20,386	)
	Philippine Peso		6,100,000		2/6/09		(4,038	)
	Philippine Peso		3,000,000		2/6/09		(2,915	)
	Philippine Peso		7,370,000		2/6/09		(5,258	)
	Philippine Peso		10,337,060		2/6/09		(4,364	)
	Philippine Peso		1,600,000		2/6/09		(1,167	)
	Philippine Peso		2,300,000		2/6/09		(2,177	)
	Philippine Peso		8,300,000		2/6/09		(6,304	)
	Philippine Peso		2,300,000		2/6/09		(2,211	)
	Polish Zloty		80,000		5/6/09		(910	)
	Pound Sterling		1,616,000		9/22/08		(84,431	)
	Pound Sterling		11,142,000		9/22/08		(1,204,723	)
	Singapore Dollar		75,164		10/6/08		(1,360	)
	Singapore Dollar		337,000		10/6/08		(7,018	)
	Singapore Dollar		190,000		10/6/08		(4,794	)
	Singapore Dollar		1,250,000		10/6/08		(28,816	)
	Singapore Dollar		360,000		10/6/08		(7,403	)
	Singapore Dollar		135,860		11/21/08		(3,789	)
	Singapore Dollar		272,912		11/21/08		(5,991	)
	Singapore Dollar		893,389		11/21/08		(3,335	)
	Singapore Dollar		2,830,400		11/21/08		(9,586	)
	Singapore Dollar		135,910		11/21/08		(3,754	)
	South African Rand		379,000		12/10/08		2,998
	South Korean Won		2,753,484,501		9/4/08		(194,428	)
	South Korean Won		340,640,501		2/9/09		(20,201	)

437

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Global Bond, continued	BUYS
	Swedish Krona		365,743		9/9/08		($1,334	)
	Swedish Krona		37,568,000		9/9/08		(365,644	)
	Taiwan Dollar		38,222,107		9/4/08		(60,615	)
	Taiwan Dollar		13,522,107		2/9/09		(10,300	)
	Taiwan Dollar		6,000,000		2/9/09		(5,170	)
	Taiwan Dollar		9,600,000		2/9/09		(6,192	)
	Taiwan Dollar		6,000,000		2/9/09		(5,042	)
	Taiwan Dollar		3,100,000		2/9/09		(2,625	)
							($8,146,281	)
	SELLS
	Australian Dollar		86,031		9/18/08	$	354
	Australian Dollar		226,043		9/18/08		11,850
	Australian Dollar		129,627		9/18/08		9,679
	Australian Dollar		6,699,762		10/16/08		39,242
	Brazilian Real		364,000		12/2/08		(32,266	)
	Brazilian Real		2,118,665		12/2/08		(240,248	)
	Brazilian Real		1,005,000		12/2/08		(79,820	)
	Brazilian Real		2,805,000		12/2/08		(240,700	)
	Canadian Dollar		812,000		9/22/08		1,205
	Chinese Yuan Renminbi		813,116		3/2/09		(31,949	)
	Chinese Yuan Renminbi		630,000		5/6/09		(6,349	)
	Danish Krone		1,342,000		9/9/08		2,964
	Euro		947,346		9/25/08		865
	Indian Rupee		638,000		11/12/08		(2,134	)
	Indian Rupee		690,000		11/12/08		(748	)
	Indian Rupee		3,766,000		11/12/08		60,562
	Japanese Yen		1,518,000		9/8/08		4,461
	Japanese Yen		588,815		9/8/08		(1,007	)
	Japanese Yen		70,000		9/8/08		(566	)
	Malaysian Ringgit		2,380,000		11/12/08		109,067
	Malaysian Ringgit		1,700,000		11/12/08		24,487
	Malaysian Ringgit		1,447,753		11/12/08		65,918
	Malaysian Ringgit		1,614,000		11/12/08		21,685
	Philippine Peso		350,000		11/12/08		208
	Singapore Dollar		2,380,000		11/21/08		104,336
	South African Rand		58,000		12/10/08		(1,765	)
	South Korean Won		2,395,358		9/4/08		179,259
	South Korean Won		334,683		9/4/08		21,819
	South Korean Won		300,000		2/9/09		9,808
	Swedish Krona		2,153,000		9/9/08		29,725
	Taiwan Dollar		436,957		9/4/08		8,264
	Taiwan Dollar		194,301		9/4/08		4,082
	Taiwan Dollar		309,320		9/4/08		4,970
	Taiwan Dollar		194,238		9/4/08		4,019
	Taiwan Dollar		100,421		9/4/08		2,141
	Taiwan Dollar		1,040,000		2/9/09		9,337
						$	92,755
Global Real Estate	BUYS
	South African Rand		5,732,000		9/30/08		($1,365	)
							($1,365	)
	SELLS
	Australian Dollar		64,792,898		9/30/08	$	456,625
	Brazilian Real		1,823,922		9/30/08		(6,111	)
	Canadian Dollar		6,652,285		9/30/08		91,620
	Euro		39,301,336		9/30/08		278,663

438

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Global Real Estate, continued	SELLS
	Japanese Yen		84,334,479		9/30/08		($372,673	)
	Norwegian Krone		500,250		9/30/08		3,799
	Pound Sterling		51,062,490		9/30/08		813,352
	Singapore Dollar		18,975,095		9/30/08		5,229
	South African Rand		733,978		9/30/08		(4,939	)
	Swedish Krona		3,573,539		9/30/08		55,426
	Swiss Franc		736,221		9/30/08		3,973
						$	1,324,964
High Income	BUYS
	Canadian Dollar		4,606,163		9/30/08		($172,720	)
							($172,720	)
	SELLS
	Canadian Dollar		7,687,069		9/30/08	$	313,817
	Pound Sterling		1,393,310		9/30/08		89,201
						$	403,018
High Yield	BUYS
	Indian Rupee		59,252,000		9/16/08		($19,531	)
	Indian Rupee		88,841,400		9/16/08		(40,005	)
							($59,536	)
International Equity Index	BUYS
	Australian Dollar		376,000		9/26/08		($33,736	)
	Canadian Dollar		397,000		9/26/08		(17,459	)
	Euro		1,012,000		9/26/08		(87,806	)
	Pound Sterling		818,000		9/26/08		(112,004	)
	Hong Kong Dollar		864,000		9/26/08		(82	)
	Japanese Yen		158,900,000		9/26/08		(20,272	)
	Swedish Krona		838,000		9/26/08		(8,414	)
							($279,773	)
Investment Quality Bond	BUYS
	Malaysian Ringgit		1,614,000		9/17/08		($18,162	)
	Malaysian Ringgit		1,614,000		9/17/08		(19,070	)
	Malaysian Ringgit		4,842,000		9/17/08		(56,300	)
	New Zealand Dollar		1,300,000		9/17/08		(52,657	)
							($146,189	)
	SELLS
	Brazilian Real		1,728,540		9/17/08		($15,408	)
	Pound Sterling		968,578		9/17/08		63,752
	Pound Sterling		824,776		9/17/08		51,031
	Pound Sterling		969,506		9/17/08		62,859
	Malaysian Ringgit		2,446,567		9/17/08		67,975
	New Zealand Dollar		1,959,607		9/17/08		144,534
						$	374,743
Real Return Bond	BUYS
	Brazilian Real		43,835,176		12/2/08	$	3,060,232
	Canadian Dollar		295,000		9/22/08		(2,497	)
	Canadian Dollar		304,307		9/22/08		(2,492	)
	Chinese Yuan Renminbi		20,395,231		3/2/09		137,699
	Chinese Yuan Renminbi		25,694,160		3/2/09		185,923
	Chinese Yuan Renminbi		10,251,500		3/2/09		70,090
	Chinese Yuan Renminbi		8,004,362		7/15/09		(43,248	)
	Chinese Yuan Renminbi		7,051,536		7/15/09		(23,945	)
	Malaysian Ringgit		5,916,052		11/12/08		(97,498	)

439

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Real Return Bond, continued	BUYS
	Malaysian Ringgit		4,170		11/12/08		($59	)
	Malaysian Ringgit		3,130		11/12/08		(44	)
	Malaysian Ringgit		7,274,096		2/12/09		(126,269	)
	Mexican Peso		534,888		11/19/08		(17	)
	Mexican Peso		350,000		11/19/08		350
	Mexican Peso		350,000		11/19/08		364
	Mexican Peso		11,268,087		11/19/08		20,885
	Philippine Peso		46,700,000		11/12/08		(35,926	)
	Philippine Peso		10,800,000		2/6/09		(7,157	)
	Philippine Peso		5,300,000		2/6/09		(5,151	)
	Philippine Peso		13,010,000		2/6/09		(9,281	)
	Philippine Peso		18,393,260		2/6/09		(7,772	)
	Philippine Peso		2,800,000		2/6/09		(2,043	)
	Philippine Peso		4,100,000		2/6/09		(3,880	)
	Philippine Peso		14,500,000		2/6/09		(11,010	)
	Philippine Peso		4,000,000		2/6/09		(3,846	)
	Polish Zloty		6,764,878		5/6/09		(76,918	)
	Pound Sterling		2,186,000		9/22/08		(208,284	)
	Singapore Dollar		1,861,282		11/21/08		(51,910	)
	Singapore Dollar		1,933,077		11/21/08		(42,433	)
	Singapore Dollar		110,971		11/21/08		(414	)
	Singapore Dollar		1,914,920		11/21/08		(43,925	)
	Singapore Dollar		114,904		11/21/08		(391	)
	Singapore Dollar		1,861,967		11/21/08		(51,425	)
						$	2,617,708
	SELLS
	Brazilian Real		12,803,057		12/2/08		($376,216	)
	Brazilian Real		2,529,000		12/2/08		(224,313	)
	Brazilian Real		973,000		12/2/08		(90,625	)
	Canadian Dollar		604,003		9/22/08		118
	Chinese Yuan Renminbi		3,197,000		3/2/09		(118,980	)
	Chinese Yuan Renminbi		1,518,190		3/2/09		(62,130	)
	Chinese Yuan Renminbi		3,341,000		3/2/09		(116,910	)
	Euro		560,000		9/25/08		1,593
	Euro		1,274,375		9/25/08		9,958
	Euro		3,844,798		9/25/08		53,012
	Euro		670,000		9/25/08		226
	Japanese Yen		827,636		9/8/08		(4,094	)
	Japanese Yen		1,115,440		9/8/08		(13,346	)
	Japanese Yen		19,398,083		9/8/08		202,845
	Japanese Yen		291,458		9/8/08		(1,886	)
	Japanese Yen		228,226		9/8/08		(1,859	)
	Mexican Peso		1,115,938		11/19/08		9,659
	Pound Sterling		25,923,236		9/22/08		1,636,548
	Swiss Franc		879,578		9/9/08		48,531
						$	952,131
Spectrum Income	BUYS
	Australian Dollar		547,816		11/20/08		($16,538	)
	Brazilian Real		720,239		9/23/08		(2,513	)
	Canadian Dollar		1,867,288		11/20/08		8,775
	Czech Koruna		5,302,144		11/20/08		(14,912	)
	Danish Krone		418,776		11/20/08		(1,992	)
	Euro		4,808,165		11/20/08		(125,199	)
	Indonesian Rupiah		1,098,965,000		10/22/08		(52	)
	Indonesian Rupiah		1,922,648,000		11/20/08		669
	Japanese Yen		769,168,238		11/20/08		60,952

440

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Spectrum Income, continued	BUYS
	Malaysian Ringgit		453,349		10/10/08		($5,330	)
	Mexican Peso		4,161,309		11/20/08		(6,616	)
	Norwegian Krone		11,266,515		11/20/08		(23,975	)
	Polish Zloty		589,506		11/20/08		(11,370	)
	Pound Sterling		272,794		11/20/08		(9,675	)
	Singapore Dollar		934,006		11/20/08		(5,986	)
	South African Rand		382,031		11/20/08		177
	South Korean Won		2,394,311,700		11/20/08		(140,456	)
	Taiwan Dollar		26,956,380		2/13/09		(10,553	)
	Turkish Lira		371,431		11/20/08		353
							($304,241	)
	SELLS
	Australian Dollar		34,000		11/20/08	$	764
	Brazilian Real		1,064,000		9/23/08		(22,521	)
	Brazilian Real		3,146,000		11/20/08		96,875
	Brazilian Real		3,047,000		2/20/09		86,636
	Canadian Dollar		162,000		11/20/08		2,622
	Euro		1,762,041		9/15/08		90,910
	Euro		1,792,108		10/7/08		130,245
	Euro		1,560,730		10/27/08		98,139
	Euro		4,490,092		11/20/08		40,100
	Hungarian Forint		1,055,225		10/14/08		88,712
	Hungarian Forint		1,640,823		10/16/08		163,008
	Hungarian Forint		1,634,110		11/20/08		36,019
	Indonesian Rupiah		325,000		11/20/08		3,488
	Japanese Yen		3,859,583		11/20/08		(24,142	)
	Malaysian Ringgit		279,000		10/10/08		11,974
	Mexican Peso		737,960		11/5/08		18,607
	Mexican Peso		604,488		11/12/08		6,121
	Mexican Peso		5,091,656		11/20/08		54,197
	Mexican Peso		224,312		11/21/08		1,879
	Pound Sterling		2,371,634		11/20/08		101,447
	South African Rand		44,000		11/20/08		(1,478	)
	South Korean Won		69,000		11/20/08		1,908
	Swedish Krona		129,589		11/20/08		4,019
	Taiwan Dollar		26,000		11/17/08		1,309
	Taiwan Dollar		28,000		2/13/09		215
	Turkish Lira		3,024,489		11/20/08		(12,065	)
						$	978,988
Strategic Bond	BUYS
	Indian Rupee		17,921,650		9/16/08		($5,907	)
	Indian Rupee		14,975,450		9/16/08		(7,989	)
	Indian Rupee		11,890,000		9/16/08		(4,109	)
							($18,005	)
Strategic Income	BUYS
	Australian Dollar		26,450,000		9/30/08		($2,447,682	)
	Canadian Dollar		5,951,408		9/30/08		(231,665	)
	Canadian Dollar		13,409,906		9/30/08		(201,089	)
							($2,880,436	)

441

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Strategic Income	SELLS
	Australian Dollar		5,774,267		9/30/08	$	572,888
	Australian Dollar		20,206,836		9/30/08		1,826,632
	Canadian Dollar		66,928,519		9/30/08		2,664,849
	Euro		45,868,672		9/30/08		2,409,766
	New Zealand Dollar		23,290,332		9/30/08		1,599,486
	Pound Sterling		6,656,076		9/30/08		307,370
	Pound Sterling		5,804,488		9/30/08		371,608
						$	9,752,599
Total Return	BUYS
	Australian Dollar		858,609		10/16/08		($4,319	)
	Brazilian Real		26,849,497		12/2/08		1,817,706
	Brazilian Real		45,540,192		12/2/08		722,834
	Chinese Yuan Renminbi		2,233,746		11/13/08		(1,124	)
	Chinese Yuan Renminbi		2,988,920		11/13/08		(1,277	)
	Chinese Yuan Renminbi		10,836,428		11/13/08		(5,394	)
	Chinese Yuan Renminbi		2,410,450		11/13/08		(1,186	)
	Chinese Yuan Renminbi		11,054,187		11/13/08		(4,431	)
	Chinese Yuan Renminbi		2,228,268		11/13/08		(928	)
	Chinese Yuan Renminbi		14,024,622		7/15/09		(68,639	)
	Chinese Yuan Renminbi		46,988,037		7/15/09		(226,860	)
	Chinese Yuan Renminbi		14,124,212		7/15/09		(51,724	)
	Chinese Yuan Renminbi		15,321,390		7/15/09		(82,532	)
	Indian Rupee		155,916,855		11/12/08		(121,235	)
	Indian Rupee		57,262,553		11/12/08		(116,397	)
	Indian Rupee		145,087,900		11/12/08		(299,326	)
	Indian Rupee		282,528,373		11/12/08		(462,786	)
	Indonesian Rupiah		4,027,800,000		10/29/08		12,354
	Indonesian Rupiah		5,706,000,000		10/29/08		16,871
	Malaysian Ringgit		1,565,968		11/12/08		(22,970	)
	Malaysian Ringgit		7,698,847		11/12/08		(123,342	)
	Malaysian Ringgit		1,563,883		11/12/08		(23,585	)
	Malaysian Ringgit		1,568,733		11/12/08		(22,154	)
	Malaysian Ringgit		1,397,520		11/12/08		(19,670	)
	Malaysian Ringgit		7,542,560		2/12/09		(130,930	)
	Philippine Peso		74,000,000		11/12/08		(69,731	)
	Philippine Peso		74,800,000		11/12/08		(57,543	)
	Philippine Peso		17,300,000		2/6/09		(11,462	)
	Philippine Peso		8,400,000		2/6/09		(8,163	)
	Philippine Peso		20,810,000		2/6/09		(14,846	)
	Philippine Peso		29,424,660		2/6/09		(12,428	)
	Philippine Peso		4,400,000		2/6/09		(3,210	)
	Philippine Peso		6,600,000		2/6/09		(6,246	)
	Philippine Peso		23,300,000		2/6/09		(17,684	)
	Philippine Peso		6,400,000		2/6/09		(6,154	)
	Singapore Dollar		1,358,600		11/21/08		(37,890	)
	Singapore Dollar		1,433,161		11/21/08		(31,459	)
	Singapore Dollar		4,447,280		11/21/08		(16,602	)
	Singapore Dollar		1,367,800		11/21/08		(31,375	)
	Singapore Dollar		4,558,818		11/21/08		(15,518	)
	Singapore Dollar		1,359,100		11/21/08		(37,536	)
	South African Rand		1,596,000		12/10/08		12,624
	Swedish Krona		8,424,000		9/9/08		(81,990	)
						$	331,743

442

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Total Return	SELLS
	Australian Dollar		1,172,937		9/18/08	$	39,258
	Brazilian Real		4,745,500		12/2/08		(54,873	)
	Brazilian Real		17,023,800		12/2/08		(1,069,826	)
	Brazilian Real		67,700		12/2/08		1,715
	Brazilian Real		3,414,700		12/2/08		(323,419	)
	Euro		45,687,426		9/25/08		629,938
	Pound Sterling		44,723,167		9/22/08		2,823,397
	Pound Sterling		10,628,912		9/22/08		519,498
	South African Rand		200,213		12/10/08		(1,928	)
	Swedish Krona		1,345,671		9/9/08		40,503
						$	2,604,263
Vista	SELLS
	Australian Dollar		510,137		9/30/08		($1,969	)
	Danish Krone		1,093,655		9/30/08		599
	Swiss Franc		2,472,345		9/30/08		2,336
						$	966

 

Forward Commitments  All Funds of the Trust described in this Annual Report may purchase or sell debt securities on a when issued or forward delivery basis, which means that the obligations will be delivered to the Funds at a future date, which may be a month or more after the date of commitment. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated.

In a TBA transaction, the Fund commits to purchasing or selling securities for which all specific information is not yet known at the time of the trade, particularly the face amount and maturity date of the underlying security transactions. Securities purchased on a TBA basis are not settled until delivered to the Fund, normally 15 to 45 days later.

The Fund may receive compensation for interest forgone in the purchase of forward delivery securities. With respect to purchase commitments, each Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities, or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic or other factors. The value of the securities underlying a forward commitment to purchase securities, and the subsequent fluctuations in their value, are taken into account when determining the Fund’s net asset value starting on the day the Fund agrees to purchase the securities. The market values of the securities purchased on a forward delivery basis are identified in the Portfolio of Investments.

Bond Forward  A forward contract is a contractual agreement made directly between two parties to buy or sell an underlying asset, usually a government bond, at an agreed-upon price and date in the future. The agreed-upon date is called the settlement date. The agreed upon price, which is set at the start of the agreement, is called the forward price. The forward price is also the price at which the forward contract will settle. In a forward transaction, no cash changes hands up-front. If the transaction is collateralized, exchange of margin will take place according to an agreed-upon schedule. Otherwise, no asset of any kind changes hands until the maturity of the contract. Consequently, counterparty credit risk can accumulate over the life of the contract. However, because no cash changes hands up-front, the amount of counterparty credit risk is limited to the mark-to-market profit of the contract, rather than the contract’s full notional value. Forward contracts trade in the over-the-counter market in the same way physical bonds trade, and liquidity is typically identical to the underlying physical bond on which the forward contract is based.

The Funds had the following bond forward contracts open at August 31, 2008:

FUND	DESCRIPTION		PRINCIPAL AMOUNT			SETTLEMENT DATE		VALUE AT TRADE DATE			VALUE AS 8/31/08			UNREALIZED APPRECIATION (DEPRECIATION)
Investment Quality Bond	Federal Republic of Germany 4.25% due 7/4/2018	EUR		4,450,000			9/30/2008	$	6,931,240		$	7,108,876		$	177,636
	Government of United Kingdom 5.00% due 3/17/2018	GBP		3,900,000			9/29/2008		7,538,943			7,576,027			37,084
	US Treasury Note 4.75% due 8/15/2017	USD		(7,300,000	)		9/17/2008		(7,815,348	)		(7,897,985	)		(82,637	)
	US Treasury Note 4.625% due 2/15/2017	USD		(7,600,000	)		9/17/2008		(8,094,440	)		(8,161,145	)		(66,705	)
														$	65,378

 

Federal income taxes  Each Fund qualifies as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required. For federal income tax purposes, certain Funds had a capital loss carryforward available, to the extent provided by regulations, to offset future net realized capital gains. To the extent that such carryforward is used by the Fund, no capital gain distributions will be made.

443

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

As of August 31, 2008, the capital loss carryforward available to offset future realized gains were as follows:

	Capital Loss Carryforwards Expiring at August 31
Fund	2014		2015		2016
Blue Chip Growth		—		—	$	30,360
Capital Appreciation	$	21,055	$	15,745,631		7,209,637
Emerging Small Company		—		35,683		—
Global Real Estate		—		—		9,668,659
High Yield		—		—		991,060
Large Cap Value		—		—		2,565,968
Mid Cap Intersection		—		—		8,451,233
Small Cap Opportunities		—		—		869,705
Small Company		—		—		1,435,117
Strategic Bond		—		521,499		—
Strategic Income		—		570,632		1,198,513
U.S. High Yield Bond		—		—		469,396
U.S. Multi Sector		—		—		3,502,461
Value & Restructuring		—		—		1,288,503

 

Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement 109 (FIN 48), at the beginning of the Fund’s fiscal year. FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not have a material impact on the Funds’ financial statements. Each of the Fund’s federal tax returns for the prior fiscal years remains subject to examination by the Internal Revenue Service.

Distribution of income and gains  Distributions from net investment income and capital gains, if any, for a Fund will be declared not less frequently than annually and reinvested in full or fraction shares of a Fund or paid in cash. The Funds record distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The tax character of distributions paid during 2008 and 2007 was as follows:

	2008 Distributions								2007 Distributions
Fund	Ordinary Income		Long Term Capital Gains		Return of Capital		Total		Ordinary Income		Long Term Capital Gains		Return of Capital		Total
Absolute Return	$	342,750	$	33,218		—	$	375,968	$	141,122		—		—	$	141,122
Active Bond		30,653,584		—		—		30,653,584		24,243,142		—		—		24,243,142
All Cap Core		29,104,571		3,995,859		—		33,100,430		1,286,357		—		—		1,286,357
All Cap Growth		2,022,589		7,048,943		—		9,071,532		108,295		—		—		108,295
All Cap Value		10,433,775		21,933,631		—		32,367,406		7,918,783	$	206,042		—		8,124,825
American Diversified Growth & Income		—		—		—		—		—		—		—		—
American Fundamental Holdings		—		—		—		—		—		—		—		—
American Global Diversification		—		—		—		—		—		—		—		—
Blue Chip Growth		15,545,901		224,978		—		15,770,879		6,794,676		—		—		6,794,676
Capital Appreciation		2,573,553		—		—		2,573,553		618,877		—		—		618,877
Core Bond		12,957,719		—		—		12,957,719		10,687,766		—		—		10,687,766
Core Equity		7,468,698		12,527,721		—		19,996,419		3,806,141		—		—		3,806,141
Emerging Growth		5,772,265		8,950,515		—		14,722,780		31,204,256		—		—		31,204,256
Emerging Markets Value		8,770,631		—		—		8,770,631		—		—		—		—
Emerging Small Company		—		—		—		—		5,173,646		—		—		5,173,646

444

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

	2008 Distributions								2007 Distributions
Fund	Ordinary Income		Long Term Capital Gains		Return of Capital		Total		Ordinary Income		Long Term Capital Gains		Return of Capital		Total
Equity-Income	$	20,617,820	$	41,991,685		—	$	62,609,505	$	47,923,033	$	96,881		—	$	48,019,914
Fundamental Value		14,055,893		7,969,498		—		22,025,391		16,996,232		—		—		16,996,232
Global Bond		43,039,332		4,490,207		—		47,529,539		21,809,471		1,228,789		—		23,038,260
Global Real Estate		31,036,600		4,807,187		—		35,843,787		15,063,407		—		—		15,063,407
High Income		45,043,435		4,519,804		—		49,563,239		22,119,587		—		—		22,119,587
High Yield		148,386,992		4,440,144		—		152,827,136		109,599,500		125,964		—		109,725,464
Index 500		2,040,133		440,461		—		2,480,594		112,959		—		—		112,959
International Equity Index		12,749,571		9,864,410		—		22,613,981		9,656,472		—		—		9,656,472
International Opportunities		55,500,786		48,677,774		—		104,178,560		8,456,964		686,672		—		9,143,636
International Small Cap		21,315,357		54,644,506		—		75,959,863		61,127,648		49,439		—		61,177,087
International Small Company		17,675,776		6,060,030		—		23,735,806		1,485,367		—		—		1,485,367
International Value		47,331,367		69,502,776		—		116,834,143		86,613,411		243,365		—		86,856,776
Investment Quality Bond		9,466,495		—		—		9,466,495		7,123,735		2,467		—		7,126,202
Large Cap		10,098,562		3,859,801		—		13,958,363		7,135,563		139,997		—		7,275,560
Large Cap Value		11,807,806		8,031,102		—		19,838,908		2,686,871		—		—		2,686,871
Mid Cap Index		17,664,488		21,697,544		—		39,362,032		2,910,338		1,898		—		2,912,236
Mid Cap Intersection		233,067		—		—		233,067		—		—		—		—
Mid Cap Stock		26,044,310		20,506,411		—		46,550,721		15,359,865		19,580		—		15,379,445
Mid Cap Value		7,895,317		7,903,170		—		15,798,487		7,187,939		23,990		—		7,211,929
Mid Cap Value Equity		2,493,636		1,556,380		—		4,050,016		611,515		—		—		611,515
Natural Resources		17,812,018		193,158,194		—		210,970,212		41,421,256		3,646,321		—		45,067,577
Optimized All Cap		615,899		25,979		—		641,878		23,630		—		—		23,630
Real Estate Equity		22,998,345		7,512,176		—		30,510,521		7,130,723		971,101		—		8,101,824
Real Estate Securities		6,289,168		15,773,539		—		22,062,707		83,466,330		3,287,811		—		86,754,141
Real Return Bond		45,676,499		—		—		45,676,499		30,900,045		1,566,760		—		32,466,805
Small Cap		4,472,638		19,965,639		—		24,438,277		—		—		—		—
Small Cap Index		4,118,742		10,517,153		—		14,635,895		4,745,805		281,791		—		5,027,596
Small Cap Opportunities		3,237,091		849,362		—		4,086,453		9,896,805		188,978		—		10,085,783
Small Company		1,444,146		4,799,673		—		6,243,819		—		—		—		—
Small Company Growth		1,370,507		3,730,653		—		5,101,160		1,393,929		—		—		1,393,929
Small Company Value		4,002,630		18,071,903		—		22,074,533		7,188,099		53,906		—		7,242,005
Spectrum Income		52,378,455		10,201,255		—		62,579,710		38,926,894		60,799		—		38,987,693
Strategic Bond		29,786,818		—		—		29,786,818		19,936,055		—		—		19,936,055
Strategic Income		17,879,553		—		—		17,879,553		12,664,623		—		—		12,664,623
Total Bond Market		2,693,946		—		—		2,693,946		1,721,518		—		—		1,721,518
Total Return		93,846,297		—		—		93,846,297		55,480,040		95,947		—		55,575,987
U.S. Government Securities		8,402,579		—		—		8,402,579		9,964,754		83,007		—		10,047,761
U.S. High Yield Bond		32,700,930		109,905		—		32,810,835		24,563,964		—		—		24,563,964
U.S. Multi Sector		40,391,149		30,744,288		—		71,135,437		17,672,102		1,149,281		—		18,821,383
Value		966,663		—		—		966,663		7,330		—		—		7,330
Value & Restructuring		7,516,364		—		—		7,516,364		4,214,793		87,431		—		4,302,224
Vista		2,470,692		10,280,477		—		12,751,169		—		—		—		—

 

Distributions paid by the Funds with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class.

As of August 31, 2008, the components of distributable earnings on a tax basis, were as follows:

FUND	UNDISTRIBUTED ORDINARY INCOME		UNDISTRIBUTED LONG TERM CAPITAL GAINS		CAPITAL LOSS CARRYFORWARD		POST-OCTOBER DEFERRAL
Absolute Return	$	50,239	$	15,531		—		—
Active Bond		6,248,776		—		—	$	210,543
All Cap Core		5,142,079		41,865		—		66,919,666
All Cap Growth		40,934		991,460		—		—
All Cap Value		540,842		2,409,046		—		—
American Diversified Growth & Income		2,443		—		—		—
American Fundamental Holdings		3,740		—		—		—
American Global Diversification		3,214		—		—		—
Blue Chip Growth		2,720,774		—	$	30,360		72,950,700
Capital Appreciation		3,035,252		—		22,976,323		84,004,834
Core Bond		3,661,521		—		—		—

445

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

FUND	UNDISTRIBUTED ORDINARY INCOME		UNDISTRIBUTED LONG TERM CAPITAL GAINS		CAPITAL LOSS CARRYFORWARD		POST-OCTOBER DEFERRAL
Core Equity	$	4,555,251		—		—	$	88,442,903
Emerging Growth		2,903,315		—		—		26,052,156
Emerging Markets Value		19,106,457		—		—		479,315
Emerging Small Company		—		—	$	35,683		8,793,118
Equity-Income		20,824,385	$	57,190,163		—		—
Fundamental Value		8,749,270						14,988,731
Global Bond		109,495,101		1,362,975		—		15,305,132
Global Real Estate		—		—		9,668,659		32,799,646
High Income		11,380,808		—		—		4,375,574
High Yield		28,493,665		—		991,060		47,880,941
Index 500		8,294,366		1,985		—		3,582,921
International Equity Index		8,054,390		1,032,964		—		—
International Opportunities		8,030,985		—		—		28,461,815
International Small Cap		5,403,114		30,285,300		—		—
International Small Company		4,695,174		6,459,894		—		—
International Value		38,789,188		31,822,867		—		—
Investment Quality Bond		2,828,953		—		—		632,498
Large Cap		3,376,400		—		—		6,733,109
Large Cap Value		5,196,212		—		2,565,968		38,839,774
Mid Cap Index		2,054,733		5,465,917		—		—
Mid Cap Intersection		100,165		—		8,451,233		41,551,575
Mid Cap Stock		—		—		—		39,124,160
Mid Cap Value		1,803,782		—		—		16,341,250
Mid Cap Value Equity		435,483		2,090,441		—		—
Natural Resources		7,158,103		113,542,261		—		—
Optimized All Cap		41,783		2,738		—		436,926
Real Estate Equity		2,886,732		322,418		—		7,081,878
Real Estate Securities		851,642		761,425		—		3,069,730
Real Return Bond		95,355,220		6,373,220		—		—
Small Cap		140,032		—		—		10,631,077
Small Cap Index		673,105		2,159,504		—		—
Small Cap Opportunities		1,206,817		—		869,705		11,341,494
Small Company		—		—		1,435,117		6,645,971
Small Company Growth		—		—		—		10,182,041
Small Company Value		1,527,971		8,394,633		—		—
Spectrum Income		15,956,393		5,818,816		—		—
Strategic Bond		4,386,833		—		521,499		7,069,123
Strategic Income		19,666,715		—		1,769,145		1,792,507
Total Bond Market		758,161		—		—		108,191
Total Return		76,216,679		20,277,333		—		—
U.S. Government Securities		5,541,713		1,788,142		—		—
U.S. High Yield Bond		6,381,964		—		469,396		11,688,092
U.S. Multi Sector		11,000,977		—		3,502,461		76,478,324
Value		117,597		—		—		2,018,801
Value & Restructuring		3,351,190		—		1,288,503		26,378,706
Vista		—		14,136,624		—		—

 

Such distributions and distributable earnings, on a tax basis, are determined in conformity with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in the Fund’s financial statements as a return of capital.

Capital accounts within financial statements are adjusted for permanent book/tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book/tax differences will reverse in a subsequent period. Permanent book/tax differences are primarily attributable to derivative transactions, foreign currency transactions, net operating losses, short term distributions received from underlying funds, amortization and accretion on debt securities, paydowns, tender fees and investments in passive foreign investment companies.

446

John Hancock Funds II
Notes to Financial Statements

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

The cost of investments owned on August 31, 2008, including short-term investments, for federal income tax purposes, was as follows:

FUND	AGGREGATE COST		UNREALIZED APPRECIATION		UNREALIZED (DEPRECIATION)			NET UNREALIZED APPRECIATION (DEPRECIATION)
Absolute Return	$	5,648,635	$	98,826		($249,817	)		($150,991	)
Active Bond		644,139,019		4,480,731		(40,582,631	)		(36,101,900	)
All Cap Core		731,858,031		21,776,008		(38,542,712	)		(16,766,704	)
All Cap Growth		118,006,774		12,493,818		(7,960,687	)		4,533,131
All Cap Value		90,447,711		9,495,397		(5,742,949	)		3,752,448
American Diversified Growth & Income		1,029,681		2,016		(29,362	)		(27,346	)
American Fundamental Holdings		1,030,190		1,925		(27,698	)		(25,773	)
American Global Diversification		1,029,759		—		(52,360	)		(52,360	)
Blue Chip Growth		1,846,320,987		304,964,983		(95,935,001	)		209,029,982
Capital Appreciation		941,967,773		133,909,452		(43,228,378	)		90,681,074
Core Bond		312,088,980		2,216,856		(4,066,214	)		(1,849,358	)
Core Equity		885,258,286		49,351,259		(219,902,322	)		(170,551,063	)
Emerging Growth		166,194,271		20,246,703		(29,690,069	)		(9,443,366	)
Emerging Markets Value		668,150,234		40,518,977		(124,336,123	)		(83,817,146	)
Emerging Small Company		73,642,957		8,127,866		(3,751,545	)		4,376,321
Equity-Income		1,074,595,254		47,823,828		(150,062,977	)		(102,239,149	)
Fundamental Value		1,692,396,294		128,596,289		(168,321,138	)		(39,724,849	)
Global Bond		1,036,564,858		9,601,598		(51,471,402	)		(41,869,804	)
Global Real Estate		693,960,528		14,981,594		(101,542,207	)		(86,560,613	)
High Income		561,593,651		7,146,106		(113,194,146	)		(106,048,040	)
High Yield		1,720,372,026		10,377,372		(207,716,997	)		(197,339,625	)
Index 500		1,041,347,725		22,258,136		(108,517,277	)		(86,259,141	)
International Equity Index		476,608,295		50,191,733		(50,789,771	)		(598,038	)
International Opportunities		897,480,418		77,585,047		(67,578,545	)		10,006,502
International Small Cap		382,714,194		29,509,076		(78,542,603	)		(49,033,527	)
International Small Company		480,949,586		26,894,334		(97,924,008	)		(71,029,674	)
International Value		1,601,969,992		75,604,624		(242,320,042	)		(166,715,418	)
Investment Quality Bond		205,792,929		1,360,165		(6,692,878	)		(5,332,713	)
Large Cap		419,468,839		23,457,167		(53,933,272	)		(30,476,105	)
Large Cap Value		730,112,424		54,604,874		(56,745,871	)		(2,140,997	)
Mid Cap Index		356,627,675		32,837,758		(49,305,508	)		(16,467,750	)
Mid Cap Intersection		242,618,372		22,513,579		(22,979,285	)		(465,706	)
Mid Cap Stock		701,113,101		78,532,869		(37,960,905	)		40,571,964
Mid Cap Value		228,956,174		16,226,203		(37,325,498	)		(21,099,295	)
Mid Cap Value Equity		97,780,443		10,072,424		(14,004,796	)		(3,932,372	)
Natural Resources		606,020,774		115,854,433		(34,015,730	)		81,838,703
Optimized All Cap		5,363,081		199,636		(433,272	)		(233,636	)
Real Estate Equity		299,884,815		7,807,874		(33,924,544	)		(26,116,670	)
Real Estate Securities		107,616,679		13,467,334		(7,591,638	)		5,875,696
Real Return Bond		1,680,844,249		6,868,861		(34,493,648	)		(27,624,787	)
Small Cap		129,450,134		16,527,716		(11,430,511	)		5,097,205
Small Cap Index		139,453,159		9,522,040		(13,400,430	)		(3,878,390	)
Small Cap Opportunities		127,858,019		13,664,458		(14,580,384	)		(915,926	)
Small Company		65,020,112		5,945,074		(4,326,361	)		1,618,713
Small Company Growth		171,838,923		26,584,495		(16,983,198	)		9,601,297
Small Company Value		539,516,555		103,837,559		(59,411,680	)		44,425,879
Spectrum Income		1,139,609,593		19,885,610		(48,489,126	)		(28,603,516	)
Strategic Bond		655,795,149		6,047,339		(64,199,348	)		(58,152,009	)
Strategic Income		467,369,295		8,212,018		(25,157,800	)		(16,945,782	)
Total Bond Market		59,514,525		410,485		(689,997	)		(279,512	)
Total Return		2,452,557,382		15,903,841		(66,689,542	)		(50,785,701	)
U.S. Government Securities		303,840,528		1,823,107		(21,307,118	)		(19,484,011	)
U.S. High Yield Bond		550,405,903		2,383,508		(30,296,701	)		(27,913,193	)
U.S. Multi Sector		905,733,890		72,797,088		(76,995,430	)		(4,198,342	)
Value		25,936,983		1,510,896		(1,638,584	)		(127,688	)
Value & Restructuring		530,320,336		109,367,328		(56,406,534	)		52,960,794
Vista		98,933,241		22,086,111		(3,527,380	)		18,558,731

 

447

John Hancock Funds II
Notes to Financial Statements

3.  RISK AND UNCERTAINTY

Investment Risk  Certain Funds of the Trust may invest a portion of their assets in securities of issuers that hold mortgage securities including subprime mortgage securities. The value of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults and may be adversely affected by shifts in the market’s perception of the issuers and changes in interest rates.

Fixed Income Risk  Fixed income securities are subject to credit and interest rate risk and involve some risk of in connection with principal and interest payments.

Derivatives and Counterparty Risk  The use of derivative instruments may involve risks different from, or potentially greater than, the risks associated with investing directly in securities. Specifically, derivative instruments exposes a 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 to 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, in the event of default, the fund will succeed in enforcing them.

Concentration Risk  The Funds may concentrate investments in a particular industry, sector of the economy or invest in a limited number of companies. Accordingly, the concentration may make the Fund’s value more volatile and investment values may rise and fall more rapidly. In addition, a fund with a concentration is particularly susceptible to the impact of market, economic, regulatory and other factors affecting the specific concentration.

Floating Rate Loan Liquidity Risk  Floating rate loans are generally subject to legal or contractual restrictions on resale. The liquidity of floating rate loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual floating rate loans. During periods of infrequent trading, valuing a floating rate loan can be more difficult, and buying and selling a floating rate loan at an acceptable price can be more difficult and delayed. Difficulty in selling a floating rate loan can result in a loss.

4.  INVESTMENT ADVISORY AND OTHER AGREEMENTS The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating sub-advisers to handle the investment of the assets of each Fund, subject to the supervision of the Trust’s Board of Trustees. As compensation for its services, the Adviser receives an advisory fee from the Trust. The Funds are not responsible for payment of the sub-advisory fees. Advisory fees charged to the Funds are as follows:

Fund	Average Net Assets All Asset Levels*
Active Bond		0.600	%
Emerging Growth		0.800
Global Bond		0.700
Real Estate Securities		0.700
Small Cap		0.850

 

Fund	First $1 Billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
Blue Chip Growth		0.825	%		0.800	%
Equity-Income		0.825			0.800
Real Return Bond		0.700			0.650
Total Return1,2		0.700			0.675

 

1  When Aggregate Net Assets exceed $1 billion, the advisory fee for the Total Return is 0.675% on all assets.

2  Until February 4, 2008, the Fund paid daily advisory fees equivalent, on an annual basis, to 0.70% of the Fund’s average net assets.

Fund	First $500 million of Aggregate Net Assets*			Excess Over $500 million of Aggregate Net Assets*
All Cap Core		0.800	%		0.750	%
American Diversified Growth & Income		0.050			0.040
American Fundamental Holdings		0.050			0.040
American Global Diversification		0.050			0.040
Emerging Small Company		0.970			0.900
High Yield		0.700			0.650
Index 500		0.470			0.460
Investment Quality Bond		0.600			0.550
Mid Cap Intersection		0.875			0.850
Small Company Value		1.050			1.000
Strategic Bond		0.700			0.650
Strategic Income		0.725			0.650
Total Bond Market		0.490			0.470
U.S. Government Securities		0.620			0.550

 

448

John Hancock Funds II
Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

Fund	First $500 million of Aggregate Net Assets*			Between $500 million and $1 billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
All Cap Growth		0.850	%		0.825	%		0.800	%
Value & Restructuring		0.825			0.800			0.775

 

Fund	First $500 million of Aggregate Net Assets*			Between $500 million and $1 billion of Aggregate Net Assets*			Between $1 billion and $1.5 billion of Aggregate Net Assets*			Between $1.5 billion and $2 billion of Aggregate Net Assets*			Excess Over $2 billion of Aggregate Net Assets*
Large Cap Value		0.825	%		0.800	%		0.775	%		0.720	%		0.700	%

 

Fund	First $200 million of Aggregate Net Assets*			Between $200 million and $500 million of Aggregate Net Assets*			Excess Over $500 million of Aggregate Net Assets*
International Small Cap		1.050	%		0.950	%		0.850	%
International Value		0.950			0.850			0.800
Mid Cap Stock		0.875			0.850			0.825
Mid Cap Value		0.900			0.850			0.825
Value		0.750			0.725			0.650

 

Fund	First $50 million of Aggregate Net Assets*			Excess Over $50 million of Aggregate Net Assets*
Natural Resources		1.050	%		1.000	%

 

Fund	First $2.5 billion of Aggregate Net Assets*			Excess Over $2.5 billion of Aggregate Net Assets*
Optimized All Cap1		0.675	%		0.650	%

 

1  Until April 25, 2008, the Portfolio paid monthly advisory equivalent, on an annual basis, to the sum of:(a) 0.750% of the first $50 million of the Portfolio’s average net assets and (b) 0.700% of the Portfolio’s average net assets in excess of $50 million.

Fund	First $500 million of Aggregate Net Assets*			Between $500 million and $1 billion of Aggregate Net Assets*			Between $1 billion and $2 billion of Aggregate Net Assets*			Excess Over $2 billion of Aggregate Net Assets*
Small Cap Opportunities1		1.000	%		0.950	%		0.900	%		0.850	%

 

1  Until June 27, 2008, the Portfolio paid monthly advisory equivalent, on an annual basis, to the sum of: (a) 1.000% of the first $500 million of the Portfolio’s average net assets and (b) 0.950% of the Portfolio’s average net assets in excess of $500 million.

Fund	First $50 million of Aggregate Net Assets*			Between $50 million and $500 million of Aggregate Net Assets*			Excess Over $500 million of Aggregate Net Assets*
Fundamental Value		0.850	%		0.800	%		0.750	%

 

Fund	First $200 million of Aggregate Net Assets*			Between $200 million and $400 million of Aggregate Net Assets*			Between $400 million and $1 billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
Vista		0.900	%		0.850	%		0.825	%		0.800	%

 

449

John Hancock Funds II
Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

Fund	First $300 million of Aggregate Net Assets*			Between $300 million and $500 million of Aggregate Net Assets*			Between $500 million and $1 billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
Capital Appreciation		0.850	%		0.800	%		0.700	%		0.670	%

 

Fund	First $350 million of Aggregate Net Assets*			Excess Over $350 million of Aggregate Net Assets*
Core Equity		0.850	%		0.750	%

 

Fund	First $500 million of Aggregate Net Assets*			Between $500 million and $1 billion of Aggregate Net Assets*			Between $1 billion and $2.5 billion of Aggregate Net Assets*			Excess Over $2.5 billion of Aggregate Net Assets*
U.S. Multi Sector		0.780	%		0.760	%		0.750	%		0.740	%

 

Fund	First $100 million of Aggregate Net Assets*			Excess Over $100 million of Aggregate Net Assets*
Emerging Markets Value		1.000	%		0.950	%
International Equity Index		0.550			0.530
International Small Company		1.000			0.950

 

Fund	First $750 million of Aggregate Net Assets*			Between $750 million and $1.5 billion of Aggregate Net Assets*			Excess Over $1.5 billion of Aggregate Net Assets*
International Opportunities		0.900	%		0.850	%		0.800	%

 

Fund	First $125 million of Aggregate Net Assets*			Excess Over $125 million of Aggregate Net Assets*
Small Company		1.050	%		1.000	%

 

Fund	First $250 million of Aggregate Net Assets*			Excess Over $250 million of Aggregate Net Assets*
Small Company Growth1		1.050	%		1.000	%
Spectrum Income		0.800			0.725

 

1  When Aggregate Net Assets exceed $1 billion, the advisory fee for the Small Company Growth is 1.00% on all assets.

Fund	First $250 million of Aggregate Net Assets*			Between $250 million and $500 million of Aggregate Net Assets*			Excess Over $500 million of Aggregate Net Assets*
Real Estate Equity		0.875	%		0.850	%		0.825	%

 

Fund	First $250 million of Aggregate Net Assets*			Between $250 million and $500 million of Aggregate Net Assets*			Between $500 million and $1 billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
Mid Cap Value Equity		0.875	%		0.850	%		0.825	%		0.800	%

 

Fund	First $500 million of Aggregate Net Assets*			Between $500 million and $750 million of Aggregate Net Assets*			Excess Over $750 million of Aggregate Net Assets
Global Real Estate		0.950	%		0.925	%		0.900	%

 

450

John Hancock Funds II
Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

Fund	First $250 million of Aggregate Net Assets*			Between $250 million and $500 million of Aggregate Net Assets*			Between $500 million and $750 million of Aggregate Net Assets*			Excess Over $750 million of Aggregate Net Assets
Large Cap		0.780	%		0.730	%		0.680	%		0.650	%

 

Fund	First $250 million of Aggregate Net Assets*			Between $250 million and $500 million of Aggregate Net Assets*			Excess over $500 million of Aggregate Net Assets*
All Cap Value		0.850	%		0.800	%		0.750	%
Mid Cap Index		0.490			0.480			0.460
Small Cap Index		0.490			0.480			0.460

 

Fund	First $200 million of Aggregate Net Assets*			Excess over $200 million of Aggregate Net Assets*
U.S. High Yield Bond		0.750	%		0.720	%

 

Fund	First $200 million of Aggregate Net Assets*			Between $200 million and $400 million of Aggregate Net Assets*			Excess Over $400 million of Aggregate Net Assets*
Core Bond		0.690	%		0.640	%		0.570	%

 

Fund	First $150 million of Aggregate Net Assets*			Between $150 million and $500 million of Aggregate Net Assets*			Between $500 million and $2.5 billion of Aggregate Net Assets*			Excess over $2.5 billion of Aggregate Net Assets*
High Income		0.725	%		0.675	%		0.650	%		0.600	%

 

*  Aggregated Net Assets include not only the net assets of a particular series of the Trust but also the net assets of a similar series of John Hancock Trust. John Hancock Trust is an open-end investment company advised by JHIMS and distributed by an affiliated of JHIMS, John Hancock Distributors, LLC.

The advisory fee for Absolute Return Portfolio has two components: (a) a fee on assets invested in affiliated Funds (“Affiliated Fund Assets”) and (b) a fee on assets not invested in affiliated funds (“Other Assets”). Affiliated Funds are any Funds of JHF II and JHF III. Under the Advisory Agreement, the Portfolio pays a monthly management fee to the Adviser as stated below.

The fee on Affiliated Fund Assets is stated as an annual percentage of the current value of the aggregate net assets of the Portfolio and the Absolute Return Trust, a series of John Hancock Trust (collectively, the “Absolute Return Funds”) determined in accordance with the following schedule and that rate is applied to the Affiliated Fund Assets of the Portfolio.

Fund	First $500 million of Aggregate Net Assets			Excess over $500 million of Aggregate Net Assets
Absolute Return1		0.060	%		0.050	%

 

1  Until April 25, 2008, the Portfolio paid monthly advisory equivalent, on an annual basis, to the sum of: (a) 0.150% of the first $200 million of the Portfolio’s average net assets, (b) 0.125% of the Portfolio’s average net assets between $200 and $500 Million, and (c) 0.100% of the Portfolio’s average net assets in excess of $500 million.

The fee on Other Assets is stated as an annual percentage of the current value of the aggregate net assets of the Absolute Return Funds, determined in accordance with the following schedule and that rate is applied to the Other Assets of the Portfolio.

Fund	First $500 million of Aggregate Net Assets			Excess over $500 million of Aggregate Net Assets
Absolute Return1		0.510	%		0.500	%

 

1  Until April 25, 2008, the Portfolio paid monthly advisory equivalent, on an annual basis, to the sum of: (a) 0.600% of the first $200 million of the Portfolio’s average net assets, (b) 0.575% of the Portfolio’s average net assets between $200 and $500 Million, and (c) 0.550% of the Portfolio’s average net assets in excess of $500 million.

451

John Hancock Funds II
Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

The organizations described below act as Sub-advisers to the Trust and its Funds pursuant to Sub-advisory Agreements with the Adviser. Fund management is allocated among the following Managers:

Fund	Subadviser
Absolute Return	MFC Global Investment Management (U.S.A.) Limited*
Active Bond	Declaration Management and Research, LLC and MFC Global Investment Management (U.S.), LLC*
All Cap Core	Deutsche Investment Management Americas, Inc.
All Cap Growth	Invesco Aim Capital Management, Inc.
All Cap Value	Lord, Abbett & Company, LLC
American Diversified Growth & Income	MFC Global Investment Management (U.S.A.) Limited*
American Fundamental Holdings	MFC Global Investment Management (U.S.A.) Limited*
American Global Diversification	MFC Global Investment Management (U.S.A.) Limited*
Blue Chip Growth	T. Rowe Price Associates, Inc.
Capital Appreciation	Jennison Associates, LLC
Core Bond	Wells Capital Management, Inc.
Core Equity	Legg Mason Capital Management, Inc.
Emerging Growth	MFC Global Investment Management (U.S.A.) Limited*
Emerging Markets Value	Dimensional Fund Advisors, L.P.
Emerging Small Company	RCM Capital Management, LLC
Equity-Income	T. Rowe Price Associates, Inc.
Fundamental Value	Davis Selected Advisers, L.P.
Global Bond	Pacific Investment Management Company, LLC
Global Real Estate	Deutsche Investment Management Americas, Inc.
High Income	MFC Global Investment Management (U.S.), LLC*
High Yield	Western Asset Management Company
Index 500	MFC Global Investment Management (U.S.A.) Limited*
International Equity Index	SSgA Funds Management, Inc.
International Opportunities	Marsico Capital Management, LLC
International Small Cap	Franklin Templeton Investment Corp.
International Small Company	Dimensional Fund Advisors, L.P.
International Value	Templeton Investment Counsel, LLC
Investment Quality Bond	Wellington Management Company, LLP
Large Cap	UBS Global Asset Management (Americas), Inc.
Large Cap Value	BlackRock Investment Management, LLC
Mid Cap Index	MFC Global Investment Management (U.S.A.) Limited*
Mid Cap Intersection	Wellington Management Company, LLP
Mid Cap Stock	Wellington Management Company, LLP
Mid Cap Value Equity	RiverSource Investments, LLC
Mid Cap Value	Lord, Abbett & Company, LLC
Natural Resources	Wellington Management Company, LLP
Optimized All Cap	MFC Global Investment Management (U.S.A.) Limited*
Real Estate Equity	T. Rowe Price Associates, Inc.
Real Estate Securities	Deutsche Investment Management Americas, Inc.
Real Return Bond	Pacific Investment Management Company, LLC
Small Cap	Independence Investments, LLC
Small Cap Index	MFC Global Investment Management (U.S.A.) Limited*
Small Cap Opportunities	Munder Capital Management/Invesco AIM Capital Management, Inc.
Small Company	American Century Investment Management, Inc.
Small Company Growth	Invesco Aim Capital Management, Inc.
Small Company Value	T. Rowe Price Associates, Inc.
Spectrum Income	T. Rowe Price Associates, Inc.
Strategic Bond	Western Asset Management Company
Strategic Income	MFC Global Investment Management (U.S.), LLC*
Total Bond Market	Declaration Management & Research, LLC
Total Return	Pacific Investment Management Company, LLC
U.S. Government Securities	Western Asset Management Company
U.S. High Yield Bond	Wells Capital Management, Inc.
U.S. Multi Sector	Grantham, Mayo, Van Otterloo & Company, LLC
Value & Restructuring	Columbia Asset Management, LLC
Value	Morgan Stanley Investment Management, Inc. (doing business as Van Kampen)
Vista	American Century Investment Management, Inc.

 

*   An Affiliate of Adviser.

452

John Hancock Funds II
Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

The investment management fees incurred for the year ended August 31, 2008, were equivalent to an annual effective rate of the Fund’s average daily net assets as follows:

Fund	Annual Effective Rate			Fund	Annual Effective Rate
Absolute Return		0.17	%	Large Cap		0.71	%
Active Bond		0.60	%	Large Cap Value		0.81	%
All Cap Core		0.77	%	Mid Cap Index		0.47	%
All Cap Growth		0.85	%	Mid Cap Intersection		0.87	%
All Cap Value		0.85	%	Mid Cap Stock		0.84	%
American Diversified Growth & Income		0.04	%	Mid Cap Value Equity		0.87	%
American Fundamental Holdings		0.04	%	Mid Cap Value		0.86	%
American Global Diversification		0.04	%	Natural Resources		1.00	%
Blue Chip Growth		0.80	%	Optimized All Cap		0.70	%
Capital Appreciation		0.71	%	Real Estate Equity		0.86	%
Core Bond		0.64	%	Real Estate Securities		0.70	%
Core Equity		0.77	%	Real Return Bond		0.67	%
Emerging Growth		0.80	%	Small Cap		0.85	%
Emerging Market Value		0.95	%	Small Cap Index		0.48	%
Emerging Small Company		0.97	%	Small Cap Opportunities		1.00	%
Equity-Income		0.81	%	Small Company		1.05	%
Fundamental Value		0.76	%	Small Company Growth		1.04	%
Global Bond		0.70	%	Small Company Value		1.02	%
Global Real Estate		0.93	%	Spectrum Income		0.73	%
High Income		0.67	%	Strategic Bond		0.67	%
High Yield		0.66	%	Strategic Income		0.69	%
Index 500		0.46	%	Total Bond Market		0.49	%
International Equity Index		0.53	%	Total Return		0.69	%
International Opportunities		0.86	%	U.S. Government Securities		0.61	%
International Small Cap		0.92	%	U.S. High Yield Bond		0.73	%
International Small Company		0.96	%	U.S. Multi Sector		0.76	%
International Value		0.81	%	Value		0.74	%
Investment Quality Bond		0.59	%	Value & Restructuring		0.81	%
				Vista		0.89	%

 

Expense Reimbursement  Effective January 1, 2008, the Adviser has agreed to reduce its advisory fee or make a payment to reimburse each Fund, in an amount equal to the amount by which all expenses of the Fund (excluding 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, transfer agency fees, blue sky fees, printing and postage fees, 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) exceeds the expense limits set forth as a percentage of average daily net assets. The Adviser has contractually agreed to these expense limits as follows: 0.05% for the Index 500 Fund, 0.075% for the Total Bond Market Fund, and 0.25% for the Value Fund. This reimbursement shall continue in effect until December 31, 2008 and then after until terminated by the Adviser on notice to JHF II. The Adviser has voluntarily agreed to these expense limits as follows: 0.05% for the International Equity Index Fund and 0.075% for the Mid Cap Index Fund and Small Cap Index Fund. This voluntary expense reimbursement shall continue in effect until terminated by the Adviser on notice to JHF II. All other voluntary waivers in place at December 31, 2007 have been terminated. Prior to December 31, 2007, the Adviser agreed to voluntarily reduce its advisory fee or reimburse each Fund if the total of all expenses (excluding taxes, fund brokerage commissions, interest, litigation and indemnification expenses, other extraordinary expenses not incurred in the ordinary course of the Funds’ business, advisory fees, Rule 12b-1 fees, and fees under any agreements or plans of the Funds dealing with services for shareholders and others with beneficial interests in shares of the Funds) exceed the following:

–   0.05% of average daily net assets of Index 500, International Equity Index;

–   0.06% of average daily net assets of Emerging Small Company;

–   0.075% of average daily net assets of Mid Cap Index, Small Cap Index, Total Bond Market;

–   0.35% of average daily net assets of Global Bond, Global Real Estate, International Opportunities, International Small Cap, International Small Company, International Value; and

–   0.25% of average daily net assets in the case of all other Funds with the exception of Absolute Return and Optimized All Cap.

The Adviser voluntarily agreed to waive a portion of its advisory fee for Emerging Small Company, Total Bond Market and Value in the amount of $7,037, $23,742 and $17,472, respectively.

In the case of Absolute Return, the Adviser has contractually agreed to waive advisory fees or reimburse the Fund if the total of all expenses (excluding advisory fees, Rule 12b-1 fees, transfer agency fees and services fees, taxes, portfolio brokerage commissions, interest, underlying Fund expenses, printing and postage, blue sky and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the business of the Absolute Return Portfolio) exceed 0.05% of average daily net assets. This expense reimbursement shall continue in effect until December 31, 2008, and thereafter until termination by the Adviser on notice to the Trust. The Adviser reimbursed the Fund in the amount of $50,708.

453

John Hancock Funds II
Notes to Financial Statements

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

In the case of the JHF II American Funds, the Adviser has contractually agreed to waive the advisory fees. This expense reimbursement shall continue in effect until July 1, 2009, and thereafter until termination by the Adviser on notice to the Trust. The Adviser reimbursed the Funds in the amounts of $74, $74 and $72 for American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification, respectively.

In the case of Optimized All Cap, the Adviser has contractually agreed to reduce its advisory fee or make a payment to reimburse the Optimized All Cap Fund in an amount equal to the amount by which all expenses of the Fund (excluding taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses, and extraordinary expenses not incurred in the ordinary course of the Fund’s business, Rule 12b-1 fees, transfer agency fees, blue sky fees, printing and postage fees, 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) exceeds the 0.80% of the average daily net assets. In addition, the Adviser has contractually agreed to limit Fund expenses so that the total Fund operating expenses do not exceed 1.30% for Class A, 2.00% for Class B, 2.00% for Class C and 0.85% for Class I of the average daily net assets attributable to the respective classes. This expense reimbursement shall continue in effect until December 31, 2008, and thereafter until termination by the Adviser on notice to the Fund. The Adviser reimbursed the Fund in the amount of $51,790.

The Advisor has contractually agreed to waive Advisor Fees for American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification until July 1, 2009. In addition the Advisor has voluntarily agreed to reimburse the above funds for a portion of “other” fund expenses. The amounts of these reimbursements are $25,391, $25,390 and $25,392, respectively.

In addition, the JHF II American Funds receive a fee equal to 0.05% of the average daily net assets value of their investment in the underlying American Funds for providing various account maintenance services. Under this agreement, American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification have received $46, $47 and $45, respectively.

In addition, the Adviser voluntarily agreed to waive a portion of its advisory fee for Blue Chip Growth, Equity-Income, International Value, Real Estate Equity, Small Company Value and Spectrum Income in the amount of $618,574, $294,297, $178,792, $90,311, $240,630 and $261,828, respectively.

These voluntary expense reimbursements may be terminated by the Adviser at any time upon notice of the Fund. These expense reimbursements are shown as a reduction of total expenses in the Statements of Operations.

Fund Administration Fees  Pursuant to the Advisory Agreement, the Funds reimburse the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Funds, including the preparation of all tax returns, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each Fund at the time the expense was incurred.

The fund administration fees incurred for the year ended August 31, 2008, were equivalent to an annual effective rate of 0.01% of the Funds’ average daily net assets, with the exception of Absolute Return, Core Equity, Emerging Growth, Global Bond, International Small Cap, Large Cap, Mid Cap Intersection, Mid Cap Value, Mid Cap Value Equity, Natural Resources, Optimized All Cap, Real Return Bond, Small Cap Opportunities, Small Company, Small Company Growth, U.S. Multi Sector and Vista, in which the effective rate was 0.02% and American Diversified Growth & Income, American Fundamental Holdings and American Global Diversification which was 0.03%.

Distribution Plan  The Funds has a Distribution Agreement with the Distributor. The Funds have adopted Distribution Plans with respect to Class A, Class B, Class C and Class 1, pursuant to Rule 12b-1 under the 1940 Act, to reimburse the Distributor for the services it provides as distributor of shares of the Funds. Accordingly, the Funds make monthly payments to the Distributor at an annual rate not to exceed 0.30%, 1.00%, 1.00% and 0.05% of the average daily net assets of Class A, Class B, Class C and Class 1, respectively. A maximum of 0.25% of such payments may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority (formerly, National Association of Securities Dealers). Under the Conduct Rules, curtailment of a portion of the Funds’ 12b-1 payments could occur under certain circumstances.

Transfer Agent Fees  Absolute Return and Optimized All Cap have a Transfer Agency Agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. For Class A, Class B, Class C and Class I shares, the Funds pay a monthly transfer agent fee at an annual rate of 0.05% of each class’ average daily net assets, plus a fee based on the number of shareholder accounts and reimbursement for certain out-of-pocket expenses. Expenses not directly attributable to a particular class of shares are aggregated and allocated to each class on the basis of its relative net asset value. Absolute Return and Optimized All Cap pay a monthly fee which is based on an annual rate of $15.00 for each Class A shareholder account, $17.50 for each Class B shareholder account and $16.50 for each Class C shareholder account.

Signature Services has agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of Class A, Class B, Class C and Class I share average daily net. This agreement is effective until December 31, 2008. Signature Services reserves the right to terminate this limitation in the future.

There were no transfer agent fees incurred for the year ended August 31, 2008. John Hancock USA is the only shareholder of Absolute Return and Optimized All Cap.

Sales Charges  Absolute Return and Optimized All Cap Class A shares are assessed up-front sales charges. There were no up-front sales charges received for these Funds during the year ended August 31, 2008.

Absolute Return and Optimized All Cap Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (CDSC) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Funds in connection with the sale of Class B and Class C shares. During the year ended August 31, 2008, there were no CDSCs received by the Distributor.

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

454

John Hancock Funds II
Notes to Financial Statements

6.  LINE OF CREDIT All Funds described in this Annual Report have entered into an agreement which enables them to participate in a $150 million unsecured committed line of credit with State Street Corporation. Effective May 9, 2008 the line of credit was changed from $100 million to $150 million. Borrowings will be made solely to temporarily finance the repurchase of capital shares. Interest is charged to each participating Fund based on its borrowings at a rate per annum equal to the Federal Funds rate plus 0.50%. In addition, a commitment fee of 0.05% per annum, payable at the end of each calendar quarter, based on the average daily-unused portion of the line of credit, is charged to each participating Fund on a prorated basis based on average net assets. Effective October 15, 2007, the commitment fee was changed from 0.07% to 0.05%. For the year ended August 31, 2008, there were no borrowings under the line of credit.

Pursuant to the custodian agreements, the Custodian may, in its discretion, advance funds to the Fund to make properly authorized payments. When such payments result in an overdraft, the Funds is obligated to repay the Custodian for any overdraft, including any costs or expenses associated with the overdraft. The Custodian has a lien and security interest in any Fund property to the extent of any overdraft.

7.  FUND SHARE TRANSACTIONS Share activities for the Funds for the periods ended August 31, 2008, and August 31, 2007, were as follows:

Absolute Return	Year ended 8-31-08					Year ended 8-31-07
	Shares		Amount			Shares		Amount
Class A shares
Distributions reinvested		9,453		$	98,121		3,382		$	36,251
Net increase		9,453		$	98,121		3,382		$	36,251
Class B shares
Distributions reinvested		8,501		$	88,064		3,167		$	33,890
Net increase		8,501		$	88,064		3,167		$	33,890
Class C shares
Distributions reinvested		8,501		$	88,065		3,167		$	33,891
Net increase		8,501		$	88,065		3,167		$	33,891
Class 1 shares
Sold		10,742		$	106,411		—			—
Distributions reinvested		9,799			101,718		3,457		$	37,090
Net increase (decrease)		20,541		$	208,129		3,457		$	37,090
Net increase (decrease)		46,996		$	482,379		13,173		$	141,122

 

Active Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		408,416			$	3,866,554			470,404			$	4,505,444
Distributions reinvested		193,573				1,814,384			186,250				1,772,438
Repurchased		(724,415	)			(6,852,622	)		(764,590	)			(7,318,089	)
Net increase (decrease)		(122,426	)			($1,171,684	)		(107,936	)			($1,040,207	)
Class NAV shares
Sold		7,641,399			$	72,168,162			12,383,573			$	118,803,493
Distributions reinvested		3,081,542				28,839,200			2,363,144				22,470,704
Repurchased		(4,810,081	)			(44,461,161	)		(1,532,557	)			(14,641,956	)
Net increase (decrease)		5,912,860			$	56,546,201			13,214,160			$	126,632,241
Net increase (decrease)		5,790,434			$	55,374,517			13,106,224			$	125,592,034

 

All Cap Core	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		33,115,679			$	334,869,340			14,623,284			$	161,835,006
Distributions reinvested		3,195,022				33,100,430			120,910				1,286,357
Repurchased		(2,340,713	)			(24,299,982	)		(284,507	)			(3,262,154	)
Net increase (decrease)		33,969,988			$	343,669,788			14,459,687			$	159,859,209

 

All Cap Growth	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		222,290			$	3,929,960			122,700			$	2,220,300
Distributions reinvested		117,538				2,192,078			1,037				18,249
Repurchased		(264,574	)			(4,730,004	)		(371,782	)			(6,773,976	)
Net increase (decrease)		75,254			$	1,392,034			(248,045	)			($4,535,427	)
Class NAV shares
Sold		585,767			$	9,936,872			1,305,753			$	23,366,485
Distributions reinvested		368,279				6,879,454			5,113				90,046
Repurchased		(4,593	)			(77,036	)		(3,641,313	)			(68,492,693	)
Net increase (decrease)		949,453			$	16,739,290			(2,330,447	)			($45,036,162	)
Net increase (decrease)		1,024,707			$	18,131,324			(2,578,492	)			($49,571,589	)

 

455

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

All Cap Value	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		343,546			$	4,178,379			351,564			$	5,877,321
Distributions reinvested		708,286				8,513,597			46,855				754,366
Repurchased		(300,130	)			(3,733,908	)		(212,851	)			(3,569,287	)
Net increase (decrease)		751,702			$	8,958,068			185,568			$	3,062,400
Class NAV shares
Sold		232,532			$	3,567,237			2,509,531			$	41,214,944
Distributions reinvested		1,994,466				23,853,809			458,933				7,370,459
Repurchased		(94,667	)			(1,029,852	)		(11,254,545	)			(191,782,275	)
Net increase (decrease)		2,132,331			$	26,391,194			(8,286,081	)			($143,196,872	)
Net increase (decrease)		2,884,033			$	35,349,262			(8,100,513	)			($140,134,472	)

 

American Diversified Growth & Income	Period ended 8-31-081
	Shares		Amount
Class 1 shares
Sold		100,261		$	1,002,513
Net increase (decrease)		100,261		$	1,002,513

 

1  Period from 7-1-08 (commencement of operations) to 8-31-08.

American Fundamental Holdings	Period ended 8-31-081
	Shares			Amount
Class 1 shares
Sold		100,639			$	1,006,256
Repurchased		(453	)			(4,426	)
Net increase (decrease)		100,186			$	1,001,830

 

1  Period from 7-1-08 (commencement of operations) to 8-31-08.

American Global Diversification	Period ended 8-31-081
	Shares		Amount
Class 1 shares
Sold		100,187		$	1,001,799
Net increase (decrease)		100,187		$	1,001,799

 

1  Period from 7-1-08 (commencement of operations) to 8-31-08.

Blue Chip Growth	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		1,533,016			$	31,199,498			577,597			$	11,483,071
Distributions reinvested		79,594				1,729,575			46,822				900,395
Repurchased		(1,253,691	)			(25,522,134	)		(1,292,131	)			(25,344,305	)
Net increase (decrease)		358,919			$	7,406,939			(667,712	)			($12,960,839	)
Class NAV shares
Sold		37,967,005			$	759,832,260			12,329,239			$	241,276,259
Distributions reinvested		646,767				14,041,304			306,834				5,894,281
Repurchased		(12,292,237	)			(250,610,821	)		(3,024,837	)			(62,984,230	)
Net increase (decrease)		26,321,535			$	523,262,743			9,611,236			$	184,186,310
Net increase (decrease)		26,680,454			$	530,669,682			8,943,524			$	171,225,471

 

Capital Appreciation	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		602,719			$	6,546,648			576,815			$	5,971,139
Distributions reinvested		14,857				170,414			7,858				80,148
Repurchased		(727,950	)			(7,944,104	)		(1,619,741	)			(16,842,865	)
Net increase (decrease)		(110,374	)			($1,227,042	)		(1,035,068	)			($10,791,578	)
Class NAV shares
Sold		53,608,989			$	587,015,773			13,693,087			$	143,208,394
Distributions reinvested		209,333				2,403,139			52,765				538,729
Repurchased		(12,198,156	)			(131,087,768	)		(1,049,654	)			(10,788,615	)
Net increase (decrease)		41,620,166			$	458,331,144			12,696,198			$	132,958,508
Net increase (decrease)		41,509,792			$	457,104,102			11,661,130			$	122,166,930

 

456

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Core Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		324,153			$	4,113,576			78,155			$	980,666
Distributions reinvested		11,455				143,652			5,107				63,538
Repurchased		(103,644	)			(1,305,951	)		(35,034	)			(436,961	)
Net increase (decrease)		231,964			$	2,951,277			48,228			$	607,243
Class NAV shares
Sold		2,007,416			$	25,454,526			5,366,895			$	67,109,137
Distributions reinvested		1,024,017				12,814,067			854,619				10,624,228
Repurchased		(3,164,733	)			(39,787,113	)		(614,127	)			(7,651,250	)
Net increase (decrease)		(133,300	)			($1,518,520	)		5,607,387			$	70,082,115
Net increase (decrease)		98,664			$	1,432,757			5,655,615			$	70,689,358

 

Core Equity	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		113,362			$	1,428,954			186,606			$	2,969,030
Distributions reinvested		19,096				288,735			4,815				76,757
Repurchased		(217,566	)			(2,868,372	)		(164,105	)			(2,606,905	)
Net increase (decrease)		(85,108	)			($1,150,683	)		27,316			$	438,882
Class NAV shares
Sold		20,095,868			$	274,948,373			10,927,208			$	177,960,574
Distributions reinvested		1,301,696				19,707,683			233,671				3,729,384
Repurchased		(6,786,846	)			(77,596,561	)		(978,198	)			(16,035,685	)
Net increase (decrease)		14,610,718			$	217,059,495			10,182,681			$	165,654,273
Net increase (decrease)		14,525,610			$	215,908,812			10,209,997			$	166,093,155

 

Emerging Growth	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		522,156			$	8,080,713			454,590			$	8,323,984
Distributions reinvested		565,990				9,135,085			1,297,455				21,459,911
Repurchased		(1,257,467	)			(18,837,865	)		(1,278,968	)			(22,763,661	)
Net increase (decrease)		(169,321	)			($1,622,067	)		473,077			$	7,020,234
Class NAV shares
Sold		451,965			$	7,687,180			929,391			$	16,371,896
Distributions reinvested		346,202				5,587,695			589,138				9,744,345
Repurchased		(2,099,041	)			(28,913,925	)		(416,630	)			(7,447,191	)
Net increase (decrease)		(1,300,874	)			($15,639,050	)		1,101,899			$	18,669,050
Net increase (decrease)		(1,470,195	)			($17,261,117	)		1,574,976			$	25,689,284

 

Emerging Markets Value	Year ended 8-31-08							Period ended 8-31-071
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		21,434,595			$	233,874,052			44,000,955			$	459,713,807
Distributions reinvested		733,944				8,770,631			—				—
Repurchased		(4,968,702	)			(57,212,941	)		(227,049	)			(2,699,099	)
Net increase (decrease)		17,199,837			$	185,431,742			43,773,906			$	457,014,708

 

1  Period from 5-1-07 (commencement of operations) to 8-31-07.

Emerging Small Company	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		174,760			$	5,107,231			83,593			$	2,503,534
Distributions reinvested		—				—			183,998				5,121,451
Repurchased		(322,457	)			(9,214,491	)		(504,347	)			(14,824,538	)
Net increase (decrease)		(147,697	)			($4,107,260	)		(236,756	)			($7,199,553	)
Class NAV shares
Sold		1,236,945			$	34,772,244			239,774			$	7,217,294
Distributions reinvested		—				—			1,872				52,195
Repurchased		(26,509	)			(785,795	)		(15,906	)			(480,154	)
Net increase (decrease)		1,210,436			$	33,986,449			225,740			$	6,789,335
Net increase (decrease)		1,062,739			$	29,879,189			(11,016	)			($410,218	)

 

457

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Equity-Income	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		468,403			$	8,149,818			1,273,256			$	24,627,604
Distributions reinvested		711,876				13,062,916			645,455				12,057,099
Repurchased		(1,933,115	)			(34,485,513	)		(1,170,281	)			(22,407,685	)
Net increase (decrease)		(752,836	)			($13,272,779	)		748,430			$	14,277,018
Class NAV shares
Sold		9,960,012			$	173,093,008			5,721,349			$	110,890,485
Distributions reinvested		2,701,559				49,546,589			1,927,268				35,962,815
Repurchased		(1,053,596	)			(17,456,223	)		(743,856	)			(14,993,199	)
Net increase (decrease)		11,607,975			$	205,183,374			6,904,761			$	131,860,101
Net increase (decrease)		10,855,139			$	191,910,595			7,653,191			$	146,137,119

 

Fundamental Value	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		468,943			$	7,745,343			857,395			$	14,638,351
Distributions reinvested		87,944				1,547,821			88,640				1,505,113
Repurchased		(557,620	)			(9,287,824	)		(335,556	)			(5,834,702	)
Net increase (decrease)		(733	)		$	5,340			610,479			$	10,308,762
Class NAV shares
Sold		46,150,851			$	765,802,292			9,918,028			$	170,285,992
Distributions reinvested		1,166,149				20,477,570			913,392				15,491,119
Repurchased		(1,300,118	)			(20,671,636	)		(845,429	)			(15,322,187	)
Net increase (decrease)		46,016,882			$	765,608,226			9,985,991			$	170,454,924
Net increase (decrease)		46,016,149			$	765,613,566			10,596,470			$	180,763,686

 

Global Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		3,022,426			$	47,839,688			884,608			$	13,106,978
Distributions reinvested		186,670				2,808,567			101,009				1,465,646
Repurchased		(1,124,604	)			(17,488,096	)		(908,875	)			(13,270,966	)
Net increase (decrease)		2,084,492			$	33,160,159			76,742			$	1,301,658
Class NAV shares
Sold		6,330,109			$	98,047,022			14,987,825			$	217,943,125
Distributions reinvested		2,987,529				44,720,972			1,489,821				21,572,614
Repurchased		(26,454,359	)			(416,360,062	)		(2,889,191	)			(42,495,399	)
Net increase (decrease)		(17,136,721	)			($273,592,068	)		13,588,455			$	197,020,340
Net increase (decrease)		(15,052,229	)			($240,431,909	)		13,665,197			$	198,321,998

 

Global Real Estate	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		31,707,847			$	296,687,499			9,526,393			$	113,846,888
Distributions reinvested		3,466,517				35,843,787			1,320,193				15,063,407
Repurchased		(1,596,250	)			(15,630,663	)		(4,407,616	)			(52,862,115	)
Net increase (decrease)		33,578,114			$	316,900,623			6,438,970			$	76,048,180

 

High Income	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		14,686,297			$	132,551,795			5,820,135			$	64,070,061
Distributions reinvested		5,441,978				49,563,239			2,072,989				22,119,587
Repurchased		(187,778	)			(1,617,425	)		(1,063,085	)			(11,687,315	)
Net increase (decrease)		19,940,497			$	180,497,609			6,830,039			$	74,502,333

 

High Yield	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		696,311			$	6,622,045			1,731,776			$	17,943,511
Distributions reinvested		466,824				4,385,088			374,824				3,820,526
Repurchased		(1,046,795	)			(9,848,226	)		(1,656,268	)			(16,963,038	)
Net increase (decrease)		116,340			$	1,158,907			450,332			$	4,800,999
Class NAV shares
Sold		15,104,482			$	144,258,647			36,127,328			$	371,263,509
Distributions reinvested		15,893,489				148,442,048			10,436,699				105,904,938
Repurchased		(15,317,361	)			(143,061,749	)		(3,393,446	)			(35,301,505	)
Net increase (decrease)		15,680,610			$	149,638,946			43,170,581			$	441,866,942
Net increase (decrease)		15,796,950			$	150,797,853			43,620,913			$	446,667,941

 

458

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Index 500	Year ended 8-31-08							Period ended 8-31-071
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		94,248,083			$	966,656,440			7,735,742			$	81,347,762
Distributions reinvested		228,837				2,480,594			11,042				112,959
Repurchased		(785,384	)			(8,129,050	)		(15,471	)			(164,315	)
Net increase (decrease)		93,691,536			$	961,007,984			7,731,313			$	81,296,406

 

1  Period from 10-27-06 (commencement of operations) to 8-31-07.

International Equity Index	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		8,878,779			$	184,866,624			4,199,279			$	88,536,529
Distributions reinvested		973,901				22,613,981			477,334				9,656,472
Repurchased		(1,922,298	)			(43,811,456	)		(2,193,361	)			(48,666,479	)
Net increase (decrease)		7,930,382			$	163,669,149			2,483,252			$	49,526,522

 

International Opportunities	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		1,150,282			$	22,400,700			774,797			$	13,674,979
Distributions reinvested		242,229				4,704,082			12,044				210,053
Repurchased		(449,580	)			(7,683,976	)		(157,552	)			(2,864,391	)
Net increase (decrease)		942,931			$	19,420,806			629,289			$	11,020,641
Class NAV shares
Sold		14,856,302			$	258,101,101			7,121,612			$	127,039,719
Distributions reinvested		5,111,741				99,474,478			511,075				8,933,583
Repurchased		(3,869,863	)			(83,940,128	)		(2,365,190	)			(44,453,744	)
Net increase (decrease)		16,098,180			$	273,635,451			5,267,497			$	91,519,558
Net increase (decrease)		17,041,111			$	293,056,257			5,896,786			$	102,540,199

 

International Small Cap	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		323,611			$	6,576,232			1,705,776			$	39,483,733
Distributions reinvested		574,235				11,117,192			290,717				5,971,316
Repurchased		(1,221,799	)			(24,324,310	)		(466,680	)			(10,228,024	)
Net increase (decrease)		(323,953	)			($6,630,886	)		1,529,813			$	35,227,025
Class NAV shares
Sold		5,212,179			$	103,270,603			1,871,638			$	41,177,768
Distributions reinvested		3,349,312				64,842,671			2,687,720				55,205,771
Repurchased		(5,082,986	)			(93,717,967	)		(6,382,317	)			(154,507,946	)
Net increase (decrease)		3,478,505			$	74,395,307			(1,822,959	)			($58,124,407	)
Net increase (decrease)		3,154,552			$	67,764,421			(293,146	)			($22,897,382	)

 

International Small Company	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		24,465,587			$	242,874,346			4,479,563			$	47,858,040
Distributions reinvested		2,258,402				23,735,806			142,824				1,485,367
Repurchased		(833,369	)			(9,068,743	)		(6,573,164	)			(77,025,666	)
Net increase (decrease)		25,890,620			$	257,541,409			(1,950,777	)			($27,682,259	)

 

International Value	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		17,402,083			$	364,303,204			1,322,833			$	25,328,322
Distributions reinvested		1,688,787				33,184,656			671,707				12,413,151
Repurchased		(3,552,354	)			(63,541,432	)		(1,294,803	)			(24,669,632	)
Net increase (decrease)		15,538,516			$	333,946,428			699,737			$	13,071,841
Class NAV shares
Sold		16,864,902			$	311,772,733			9,130,148			$	173,324,628
Distributions reinvested		4,267,829				83,649,487			4,037,073				74,443,625
Repurchased		(8,697,693	)			(158,842,966	)		(5,019,354	)			(100,607,697	)
Net increase (decrease)		12,435,038			$	236,579,254			8,147,867			$	147,160,556
Net increase (decrease)		27,973,554			$	570,525,682			8,847,604			$	160,232,397

 

459

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Investment Quality Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		1,466,981			$	17,340,206			1,021,236			$	11,972,047
Distributions reinvested		213,443				2,493,124			158,709				1,852,666
Repurchased		(749,209	)			(8,821,520	)		(460,220	)			(5,382,723	)
Net increase (decrease)		931,215			$	11,011,810			719,725			$	8,441,990
Class NAV shares
Sold		2,308,012			$	27,265,056			2,300,517			$	27,013,344
Distributions reinvested		597,685				6,973,371			452,189				5,273,536
Repurchased		(587,097	)			(6,925,167	)		(188,896	)			(2,204,492	)
Net increase (decrease)		2,318,600			$	27,313,260			2,563,810			$	30,082,388
Net increase (decrease)		3,249,815			$	38,325,070			3,283,535			$	38,524,378

 

Large Cap	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		411,068			$	6,096,677			1,889,334			$	31,381,392
Distributions reinvested		64,633				1,000,527			5,975				92,678
Repurchased		(456,311	)			(6,901,587	)		(136,889	)			(2,238,827	)
Net increase (decrease)		19,390			$	195,617			1,758,420			$	29,235,243
Class NAV shares
Sold		4,973,556			$	73,113,718			8,044,087			$	133,488,429
Distributions reinvested		837,069				12,957,836			463,113				7,182,882
Repurchased		(824,896	)			(11,944,331	)		(35,192	)			(565,500	)
Net increase (decrease)		4,985,729			$	74,127,223			8,472,008			$	140,105,811
Net increase (decrease)		5,005,119			$	74,322,840			10,230,428			$	169,341,054

 

Large Cap Value	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		341,878			$	8,042,113			1,062,104			$	26,272,941
Distributions reinvested		169,130				4,270,535			28,375				703,700
Repurchased		(606,248	)			(14,638,101	)		(637,635	)			(16,149,763	)
Net increase (decrease)		(95,240	)			($2,325,453	)		452,844			$	10,826,878
Class NAV shares
Sold		11,927,399			$	285,783,356			5,881,000			$	147,425,132
Distributions reinvested		615,351				15,568,373			79,838				1,983,171
Repurchased		(206,976	)			(5,185,839	)		(278,132	)			(7,646,247	)
Net increase (decrease)		12,335,774			$	296,165,890			5,682,706			$	141,762,056
Net increase (decrease)		12,240,534			$	293,840,437			6,135,550			$	152,588,934

 

Mid Cap Index	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		5,219,379			$	101,296,492			20,726,108			$	415,874,261
Distributions reinvested		2,023,755				39,362,032			148,583				2,912,236
Repurchased		(9,402,930	)			(176,834,064	)		(10,039,477	)			(215,246,486	)
Net increase (decrease)		(2,159,796	)			($36,175,540	)		10,835,214			$	203,540,011

 

Mid Cap Intersection	Year ended 8-31-08							Period ended 8-31-071
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		3,844,674			$	36,057,850			35,165,220			$	353,015,606
Distributions reinvested		24,768				233,067			—				—
Repurchased		(10,405,894	)			(93,281,027	)		(316,301	)			(3,288,504	)
Net increase (decrease)		(6,536,452	)			($56,990,110	)		34,848,919			$	349,727,102

 

1  Period from 5-1-07 (commencement of operations) to 8-31-07.

Mid Cap Stock	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		15,757,400			$	306,404,980			960,440			$	17,124,190
Distributions reinvested		1,085,372				20,871,703			323,891				5,383,070
Repurchased		(1,577,792	)			(28,581,143	)		(871,977	)			(14,994,688	)
Net increase (decrease)		15,264,980			$	298,695,540			412,354			$	7,512,572
Class NAV shares
Sold		2,636,705			$	46,422,599			7,142,479			$	129,608,890
Distributions reinvested		1,332,590				25,679,018			600,744				9,996,375
Repurchased		(2,678,510	)			(47,554,360	)		(749,907	)			(14,363,978	)
Net increase (decrease)		1,290,785			$	24,547,257			6,993,316			$	125,241,287
Net increase (decrease)		16,555,765			$	323,242,797			7,405,670			$	132,753,859

 

460

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Mid Cap Value	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		370,865			$	6,735,493			843,108			$	17,718,229
Distributions reinvested		302,597				5,843,149			232,425				4,648,507
Repurchased		(1,025,977	)			(19,011,708	)		(638,176	)			(13,127,790	)
Net increase (decrease)		(352,515	)			($6,433,066	)		437,357			$	9,238,946
Class NAV shares
Sold		1,344,070			$	26,489,785			5,056,349			$	110,680,494
Distributions reinvested		515,821				9,955,338			128,234				2,563,422
Repurchased		(2,575,951	)			(44,502,630	)		(61,424	)			(1,366,694	)
Net increase (decrease)		(716,060	)			($8,057,507	)		5,123,159			$	111,877,222
Net increase (decrease)		(1,068,575	)			($14,490,573	)		5,560,516			$	121,116,168

 

Mid Cap Value Equity	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		2,057,746			$	22,700,078			1,401,010			$	14,976,201
Distributions reinvested		360,964				4,050,016			59,141				611,515
Repurchased		(4,530,658	)			(47,687,646	)		(327,297	)			(3,896,220	)
Net increase (decrease)		(2,111,948	)			($20,937,552	)		1,132,854			$	11,691,496

 

Natural Resources	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		2,062,714			$	87,283,264			1,024,519			$	41,344,766
Distributions reinvested		868,598				33,701,605			110,329				3,900,147
Repurchased		(679,864	)			(25,920,216	)		(798,350	)			(28,750,095	)
Net increase (decrease)		2,251,448			$	95,064,653			336,498			$	16,494,818
Class NAV shares
Sold		3,690,294			$	140,859,218			8,180,205			$	291,532,246
Distributions reinvested		4,588,884				177,268,607			1,168,533				41,167,430
Repurchased		(11,259,043	)			(453,278,620	)		(11,526,262	)			(460,846,911	)
Net increase (decrease)		(2,979,865	)			($135,150,795	)		(2,177,524	)			($128,147,235	)
Net increase (decrease)		(728,417	)			($40,086,142	)		(1,841,026	)			($111,652,417	)

 

Optimized All Cap	Year ended 8-31-081							Year ended 8-31-07
	Shares			Amount				Shares		Amount
Class A shares
Distributions reinvested		15,532			$	163,396			685		$	7,698
Net increase		15,532			$	163,396			685		$	7,698
Class B shares
Distributions reinvested		14,851			$	155,938			280		$	3,141
Net increase		14,851			$	155,938			280		$	3,141
Class C shares
Distributions reinvested		14,851			$	155,938			280		$	3,141
Net increase		14,851			$	155,938			280		$	3,141
Class I shares
Distributions reinvested		15,822			$	166,606			859		$	9,650
Net increase		15,822			$	166,606			859		$	9,650
Class NAV shares
Sold		9,766			$	91,345			—			—
Repurchased		(2	)			(19	)		—			—
Net increase (decrease)		9,764			$	91,326			—			—
Net increase (decrease)		70,820			$	733,204			2,104		$	23,630

 

1  Class NAV shares began operation on 6-12-08.

Real Estate Equity	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		6,133,942			$	54,290,884			3,044,992			$	36,200,187
Distributions reinvested		3,482,936				30,510,521			703,894				8,101,824
Repurchased		(2,090,951	)			(18,247,879	)		(5,258,219	)			(65,978,590	)
Net increase (decrease)		7,525,927			$	66,553,526			(1,509,333	)			($21,676,579	)

 

Real Estate Securities	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		888,010			$	12,848,527			1,700,692			$	41,830,289
Distributions reinvested		1,568,067				22,062,707			4,621,957				86,754,141
Repurchased		(2,322,819	)			(34,064,430	)		(3,882,475	)			(75,519,173	)
Net increase (decrease)		133,258			$	846,804			2,440,174			$	53,065,257

 

461

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Real Return Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		2,631,490			$	37,196,669			478,649			$	6,295,015
Distributions reinvested		94,211				1,297,783			50,068				653,154
Repurchased		(883,016	)			(12,321,926	)		(384,686	)			(5,048,557	)
Net increase (decrease)		1,842,685			$	26,172,526			144,031			$	1,899,612
Class NAV shares
Sold		12,324,983			$	171,406,847			22,878,787			$	298,698,002
Distributions reinvested		3,275,848				44,378,716			2,460,953				31,813,651
Repurchased		(29,962,600	)			(422,056,008	)		(4,019,436	)			(52,642,293	)
Net increase (decrease)		(14,361,769	)			($206,270,445	)		21,320,304			$	277,869,360
Net increase (decrease)		(12,519,084	)			($180,097,919	)		21,464,335			$	279,768,972

 

Small Cap	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		109,222			$	1,355,161			61,796			$	963,241
Distributions reinvested		15,039				202,429			—				—
Repurchased		(43,171	)			(533,278	)		(39,122	)			(610,743	)
Net increase (decrease)		81,090			$	1,024,312			22,674			$	352,498
Class NAV shares
Sold		1,595,262			$	21,656,817			2,911,876			$	45,235,524
Distributions reinvested		1,795,248				24,235,848			—				—
Repurchased		(3,559,430	)			(41,780,724	)		(9,412,869	)			(150,924,715	)
Net increase (decrease)		(168,920	)		$	4,111,941			(6,500,993	)			($105,689,191	)
Net increase (decrease)		(87,830	)		$	5,136,253			(6,478,319	)			($105,336,693	)

 

Small Cap Index	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		7,281,913			$	95,271,856			2,604,866			$	45,066,530
Distributions reinvested		1,093,047				14,635,895			301,054				5,027,596
Repurchased		(3,949,810	)			(55,734,594	)		(5,499,498	)			(97,783,789	)
Net increase (decrease)		4,425,150			$	54,173,157			(2,593,578	)			($47,689,663	)

 

Small Cap Opportunities	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		125,630			$	2,625,148			266,931			$	6,517,864
Distributions reinvested		25,432				564,583			53,393				1,280,892
Repurchased		(275,966	)			(5,831,206	)		(158,586	)			(3,901,915	)
Net increase (decrease)		(124,904	)			($2,641,475	)		161,738			$	3,896,841
Class NAV shares
Sold		1,169,243			$	25,651,323			696,274			$	17,063,145
Distributions reinvested		159,361				3,521,870			368,714				8,804,891
Repurchased		(4,459,806	)			(91,274,688	)		(2,137,165	)			(54,427,134	)
Net increase (decrease)		(3,131,202	)			($62,101,495	)		(1,072,177	)			($28,559,098	)
Net increase (decrease)		(3,256,106	)			($64,742,970	)		(910,439	)			($24,662,257	)

 

Small Company	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		75,548			$	1,116,586			46,205			$	794,825
Distributions reinvested		21,506				318,287			—				—
Repurchased		(94,100	)			(1,364,410	)		(126,691	)			(2,171,378	)
Net increase (decrease)		2,954			$	70,463			(80,486	)			($1,376,553	)
Class NAV shares
Sold		959,772			$	14,916,708			1,267,238			$	21,484,026
Distributions reinvested		399,564				5,925,532			—				—
Repurchased		(2,556,386	)			(36,621,889	)		(1,420,528	)			(25,991,283	)
Net increase (decrease)		(1,197,050	)			($15,779,649	)		(153,290	)			($4,507,257	)
Net increase (decrease)		(1,194,096	)			($15,709,186	)		(233,776	)			($5,883,810	)

 

Small Company Growth	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		1,922,115			$	23,486,340			9,408,432			$	124,318,163
Distributions reinvested		392,397				5,101,160			117,039				1,393,929
Repurchased		(4,108,566	)			(48,292,869	)		(279,058	)			(3,781,747	)
Net increase (decrease)		(1,794,054	)			($19,705,369	)		9,246,413			$	121,930,345

 

462

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

Small Company Value	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		425,108			$	10,367,054			336,822			$	8,639,569
Distributions reinvested		255,329				6,117,691			106,036				2,645,608
Repurchased		(897,829	)			(21,630,872	)		(1,136,528	)			(29,046,918	)
Net increase (decrease)		(217,392	)			($5,146,127	)		(693,670	)			($17,761,741	)
Class NAV shares
Sold		5,278,186			$	129,413,982			2,312,549			$	60,143,382
Distributions reinvested		666,813				15,956,842			184,446				4,596,397
Repurchased		(1,513,362	)			(34,661,177	)		(260,041	)			(7,091,324	)
Net increase (decrease)		4,431,637			$	110,709,647			2,236,954			$	57,648,455
Net increase (decrease)		4,214,245			$	105,563,520			1,543,284			$	39,886,714

 

Spectrum Income	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		13,273,163			$	138,241,427			19,790,247			$	208,019,793
Distributions reinvested		6,049,043				62,579,710			3,740,072				38,987,693
Repurchased		(6,925,199	)			(71,834,426	)		(4,753,186	)			(50,541,537	)
Net increase (decrease)		12,397,007			$	128,986,711			18,777,133			$	196,465,949

 

Strategic Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		556,950			$	6,212,997			1,055,066			$	12,577,465
Distributions reinvested		231,353				2,551,211			198,759				2,346,726
Repurchased		(1,014,889	)			(11,331,727	)		(918,020	)			(10,881,824	)
Net increase (decrease)		(226,586	)			($2,567,519	)		335,805			$	4,042,367
Class NAV shares
Sold		6,810,526			$	75,735,385			12,885,694			$	153,358,252
Distributions reinvested		2,482,165				27,235,607			1,494,094				17,589,329
Repurchased		(1,097,763	)			(12,219,494	)		(567,651	)			(6,754,090	)
Net increase (decrease)		8,194,928			$	90,751,498			13,812,137			$	164,193,491
Net increase (decrease)		7,968,342			$	88,183,979			14,147,942			$	168,235,858

 

Strategic Income	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		6,056,951			$	62,238,941			13,521,665			$	136,051,831
Distributions reinvested		1,759,699				17,879,553			1,271,380				12,664,623
Repurchased		(3,586,424	)			(36,888,368	)		(739,348	)			(7,433,421	)
Net increase (decrease)		4,230,226			$	43,230,126			14,053,697			$	141,283,033

 

Total Bond Market	Year ended 8-31-08							Period ended 8-31-071
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		754,386			$	7,594,078			5,274,108			$	52,752,211
Distributions reinvested		268,665				2,693,946			173,216				1,721,518
Repurchased		(447,122	)			(4,518,245	)		(97,420	)			(968,055	)
Net increase (decrease)		575,929			$	5,769,779			5,349,904			$	53,505,674

 

1  Period from 10-27-06 (commencement of operations) to 8-31-07.

Total Return	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		2,779,974			$	39,581,279			1,461,759			$	20,131,423
Distributions reinvested		509,528				7,109,493			362,592				4,966,012
Repurchased		(1,094,830	)			(15,460,119	)		(1,245,697	)			(17,073,693	)
Net increase (decrease)		2,194,672			$	31,230,653			578,654			$	8,023,742
Class NAV shares
Sold		32,951,371			$	469,282,831			28,155,152			$	385,995,030
Distributions reinvested		6,233,014				86,736,804			3,705,780				50,609,975
Repurchased		(21,661,987	)			(305,257,691	)		(5,758,511	)			(78,833,586	)
Net increase (decrease)		17,522,398			$	250,761,944			26,102,421			$	357,771,419
Net increase (decrease)		19,717,070			$	281,992,597			26,681,075			$	365,795,161

 

463

John Hancock Funds II
Notes to Financial Statements

FUND SHARE TRANSACTIONS, CONTINUED

U.S. Government Securities	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		702,490			$	9,340,868			580,345			$	7,852,313
Distributions reinvested		137,722				1,815,027			147,423				1,988,057
Repurchased		(838,128	)			(11,053,093	)		(679,186	)			(9,183,312	)
Net increase (decrease)		2,084			$	102,802			48,582			$	657,058
Class NAV shares
Sold		3,027,126			$	39,911,495			2,754,413			$	37,331,587
Distributions reinvested		501,472				6,587,552			598,778				8,059,704
Repurchased		(2,392,604	)			(32,368,008	)		(3,717,936	)			(50,520,418	)
Net increase (decrease)		1,135,994			$	14,131,039			(364,745	)			($5,129,127	)
Net increase (decrease)		1,138,078			$	14,233,841			(316,163	)			($4,472,069	)

 

U.S. High Yield Bond	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class 1 shares
Sold		297,885			$	3,688,570			276,207			$	3,655,440
Distributions reinvested		28,885				358,026			17,230				226,325
Repurchased		(195,305	)			(2,441,024	)		(86,471	)			(1,142,483	)
Net increase (decrease)		131,465			$	1,605,572			206,966			$	2,739,282
Class NAV shares
Sold		11,247,562			$	139,912,495			7,130,519			$	94,644,114
Distributions reinvested		2,619,456				32,452,809			1,855,247				24,337,639
Repurchased		(1,039,574	)			(12,566,762	)		(580,754	)			(7,773,806	)
Net increase (decrease)		12,827,444			$	159,798,542			8,405,012			$	111,207,947
Net increase (decrease)		12,958,909			$	161,404,114			8,611,978			$	113,947,229

 

U.S. Multi Sector	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		22,493,175			$	234,251,665			27,382,475			$	305,886,028
Distributions reinvested		6,562,310				71,135,437			1,725,150				18,821,383
Repurchased		(70,277,801	)			(703,950,476	)		(11,939,855	)			(137,248,940	)
Net increase (decrease)		(41,222,316	)			($398,563,374	)		17,167,770			$	187,458,471

 

Value	Year ended 8-31-08							Period ended 8-31-071
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		1,805,557			$	18,416,383			1,218,509			$	13,203,226
Distributions reinvested		90,767				966,663			693				7,330
Repurchased		(399,154	)			(4,683,624	)		(446	)			(4,748	)
Net increase (decrease)		1,497,170			$	14,699,422			1,218,756			$	13,205,808

 

1  Period from 10-27-06 (commencement of operations) to 8-31-07.

Value & Restructuring	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		18,834,284			$	235,755,849			5,649,370			$	70,769,005
Distributions reinvested		573,768				7,516,364			361,835				4,302,224
Repurchased		(2,585,605	)			(33,492,448	)		(2,178,133	)			(29,533,506	)
Net increase (decrease)		16,822,447			$	209,779,765			3,833,072			$	45,537,723

 

Vista	Year ended 8-31-08							Year ended 8-31-07
	Shares			Amount				Shares			Amount
Class NAV shares
Sold		723,978			$	9,389,356			1,487,006			$	17,382,107
Distributions reinvested		856,933				12,751,169			—				—
Repurchased		(4,312,417	)			(58,470,375	)		(1,140,710	)			(15,924,184	)
Net increase (decrease)		(2,731,506	)			($36,329,850	)		346,296			$	1,457,923

 

464

John Hancock Funds II
Notes to Financial Statements

8.  PURCHASES AND SALES OF SECURITIES The following summarizes the securities transactions (except for short-term investments) for the Funds for the period ended August 31, 2008:

	PURCHASES				SALES AND MATURITIES
FUND	U.S. GOVERNMENT		OTHER ISSUERS		U.S. GOVERNMENT		OTHER ISSUERS
Absolute Return		—	$	3,264,162		—	$	2,378,401
Active Bond	$	1,271,257,252		245,959,340	$	1,234,606,807		157,204,218
All Cap Core		—		1,685,423,686		—		1,390,242,674
All Cap Growth		—		147,437,081		—		139,159,580
All Cap Value		—		74,551,931		—		71,074,648
American Diversified Growth & Income		—		1,029,751		—		70
American Fundamental Holdings		—		1,030,260		—		70
American Global Diversification		—		1,029,828		—		69
Blue Chip Growth		—		1,377,262,683		—		860,623,264
Capital Appreciation		—		1,239,970,439		—		798,324,060
Core Bond		961,894,837		208,020,891		1,019,781,735		162,202,343
Core Equity		—		556,313,134		—		359,622,936
Emerging Growth		—		87,366,314		—		110,021,488
Emerging Markets Value		—		248,991,936		—		67,622,733
Emerging Small Company		—		101,837,676		—		71,577,851
Equity-Income		—		435,196,790		—		268,539,074
Fundamental Value		—		905,336,072		—		177,864,630
Global Bond		2,452,993,639		6,868,303,272		2,477,363,026		7,934,573,586
Global Real Estate		—		638,855,102		—		359,751,595
High Income		—		374,685,845		—		208,516,947
High Yield		—		1,035,542,648		81,162		886,331,991
Index 500		—		965,499,810		—		8,961,922
International Equity Index		—		179,649,018		—		46,567,663
International Opportunities		—		1,026,863,867		—		881,575,318
International Small Cap		—		112,644,666		—		132,954,718
International Small Company		—		271,887,895		—		34,381,381
International Value		—		805,792,105		—		317,261,485
Investment Quality Bond		32,518,518		143,127,288		27,218,363		107,076,478
Large Cap		—		276,903,979		—		210,000,433
Large Cap Value		—		663,193,722		—		383,473,578
Mid Cap Index		—		167,692,147		—		220,373,174
Mid Cap Intersection		—		249,543,303		—		306,501,610
Mid Cap Stock		—		1,046,600,034		—		813,292,754
Mid Cap Value		—		84,924,430		—		115,263,745
Mid Cap Value Equity		—		63,051,892		—		86,670,217
Natural Resources		—		255,165,434		—		495,571,845
Optimized All Cap		—		10,341,277		—		10,170,786
Real Estate Equity		—		114,557,916		—		67,697,930
Real Estate Securities		—		89,988,770		—		108,861,983
Real Return Bond		13,118,357,290		267,431,338		12,953,573,228		102,667,767
Small Cap		—		145,118,025		—		159,717,948
Small Cap Index		—		107,843,117		—		68,166,884
Small Cap Opportunities		—		138,553,592		—		202,730,196
Small Company		—		118,499,996		—		140,792,637
Small Company Growth		—		72,776,234		—		102,308,422
Small Company Value		—		181,291,563		—		104,424,644
Spectrum Income		287,798,155		469,680,426		299,792,265		367,790,162
Strategic Bond		649,998,106		202,487,834		764,917,434		111,725,219
Strategic Income		39,084,007		231,687,055		37,083,778		204,007,679
Total Bond Market		45,056,587		12,875,459		45,868,315		6,702,861
Total Return		1,929,844,063		1,303,265,854		1,928,073,935		604,960,570
U.S. Government Securities		139,198,689		11,633,059		119,820,233		2,440,720
U.S. High Yield Bond		—		400,423,449		53,115		251,123,928
U.S. Multi Sector		—		1,091,320,214		—		1,511,141,291
Value		—		27,251,708		—		13,764,685
Value & Restructuring		—		251,613,313		—		67,538,016
Vista Fund		—		232,167,258		—		279,799,847

 

465

John Hancock Funds II
Notes to Financial Statements

9.  INVESTMENT IN AFFILIATED UNDERLYING FUNDS The Absolute Return Portfolio invests primarily in affiliated underlying Funds that are managed by affiliates of the Adviser. 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 year ended August 31, 2008, the Absolute Return Portfolio did not hold 5% or more of any of the underlying Funds’ net assets.

10. SUBSEQUENT EVENT

Cessation of Operations and Significant Redemptions  On September 26, 2008, the Board of Trustees voted to liquidate Emerging Growth and Small Cap Funds. On October 24, 2008, Class 1 of Emerging Growth Fund was fully redeemed. Additionally, on October 24 and 27, 2008, Class 1 and Class NAV of Small Cap Fund, respectively, were fully redeemed.

Furthermore, Class 1 of Small Company Fund was fully redeemed on October 24, 2008.

466

John Hancock Funds II

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Funds (identified in Note 1) comprising John Hancock Funds II (“the Trust”) at August 31, 2008, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Trust’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2008 by correspondence with the custodian, transfer agents, and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 30, 2008

467

John Hancock Funds II
Federal Tax Information (Unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions of the Fund, if any, paid during its taxable year ended August 31, 2008.

LONG TERM CAPITAL GAINS  The Funds below have designated the following amounts as capital gain dividends paid during the year.

FUND		Capital Gains
Absolute Return		$	33,218
Active Bond			—
All Cap Core			3,995,859
All Cap Growth			7,048,943
All Cap Value			21,933,631
American Diversified Growth & Income			—
American Fundamental Holdings			—
American Global Diversification			—
Blue Chip Growth			224,978
Capital Appreciation			—
Core Bond			—
Core Equity			12,527,721
Emerging Growth			8,950,515
Emerging Markets Value			—
Emerging Small Company			—
Equity-Income			41,991,685
Fundamental Value			7,969,498
Global Bond			4,490,207
Global Real Estate			4,807,187
High Income			4,519,804
High Yield			4,440,144
Index 500			440,461
International Equity Index			9,864,410
International Opportunities			48,677,774
International Small Cap			54,644,506
International Small Company			6,060,030
International Value			69,502,776
Investment Quality Bond			—
Large Cap			3,859,801
Large Cap Value		$	8,031,102
Mid Cap Index			21,697,544
Mid Cap Intersection			—
Mid Cap Stock			20,506,411
Mid Cap Value			7,903,170
Mid Cap Value Equity			1,556,380
Natural Resources			193,158,194
Optimized All Cap			25,979
Real Estate Equity			7,512,176
Real Estate Securities			15,773,539
Real Return Bond			—
Small Cap			19,965,639
Small Cap Index			10,517,153
Small Cap Opportunities			849,362
Small Company			4,800,453
Small Company Growth			3,730,653
Small Company Value			18,071,903
Spectrum Income			10,201,255
Strategic Bond			—
Strategic Income			—
Total Bond Market			—
Total Return			—
U.S. Government Securities	��		—
U.S. High Yield Bond			109,905
U.S. Multi Sector			30,744,288
Value			—
Value & Restructuring			—
Vista			10,280,477

 

DIVIDEND RECEIVED DEDUCTION  Corporate shareholders are generally entitled to take the dividend received deduction on the portion of a Fund’s dividend distribution that qualifies under tax law. The percentage of the Fund’s fiscal 2008 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.

FUND	Dividend Received Deduction
Absolute Return		9.59	%
Active Bond		0.00	%
All Cap Core		100.00	%
All Cap Growth		100.00	%
All Cap Value		100.00	%
American Diversified Growth & Income		100.00	%
American Fundamental Holdings		87.38	%
American Global Diversification		37.21	%
Blue Chip Growth		100.00	%
Capital Appreciation		100.00	%
Core Bond		0.00	%
Core Equity		100.00	%
Emerging Growth		5.76	%
Emerging Markets Value		0.00	%
Emerging Small Company		0.00	%
Equity-Income		85.69	%
Fundamental Value		100.00	%
Global Bond		0.00	%
Global Real Estate		33.28	%
High Income		0.00	%
High Yield		0.00	%
Index 500		100.00	%
International Equity Index		1.84	%
International Opportunities		0.00	%
International Small Cap		2.18	%
International Small Company		0.00	%
International Value		0.00	%
Investment Quality Bond		0.00	%
Large Cap		88.49	%
Large Cap Value		100.00	%
Mid Cap Index		44.03	%
Mid Cap Intersection		100.00	%
Mid Cap Stock		35.04	%
Mid Cap Value		91.10	%
Mid Cap Value Equity		100.00	%
Natural Resources		20.06	%
Optimized All Cap		99.82	%
Real Estate Equity		1.18	%
Real Estate Securities		0.00	%
Real Return Bond		0.00	%

468

John Hancock Funds II
Federal Tax Information (Unaudited)

FUND	DIVIDEND RECEIVED DEDUCTION
Small Cap		94.49	%
Small Cap Index		48.51	%
Small Cap Opportunities		53.53	%
Small Company		0.00	%
Small Company Growth		100.00	%
Small Company Value		100.00	%
Spectrum Income		8.13	%
Strategic Bond		1.19	%
Strategic Income		0.00	%
Total Bond Market		0.00	%
Total Return		0.00	%
U.S. Government Securities		0.00	%
U.S. High Yield Bond		0.00	%
U.S. Multi Sector		100.00	%
Value		48.28	%
Value & Restructuring		100.00	%
Vista		34.92	%

 

FOREIGN TAX CREDITS  As of August 31, 2008, the Funds below have designated the following amounts as foreign tax credits, which represent taxes paid on income derived from foreign sources.

FUND	Foreign tax Credit
Emerging Markets Value	$	1,482,557
Global Real Estate		859,042
International Equity Index		1,204,297
International Opportunities		1,469,226
International Small Cap		1,127,917
International Small Company		575,745
International Value		5,964,371

 

QUALIFIED DIVIDEND INCOME  The Fund hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2008.

Shareholders will be mailed a 2008 U.S. Treasury Department Form 1099-DIV in January 2009. This will reflect the total of all distributions that are taxable for calendar year 2008.

469

John Hancock Funds II
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (unaudited)

This section describes the evaluation by the Board of Trustees of the Advisory Agreement (the “Advisory Agreement”) and each of the Subadvisory Agreements and the Sub-Subadvisory Agreements (collectively, the “Subadvisory Agreements”) for each of the portfolios (the “Funds”) of John Hancock Funds II (the “Trust”) discussed in this annual report except those noted below.

The Advisory Agreement and Subadvisory Agreements for the following portfolios were not being considered for renewal at this time since each of these Funds commenced operations on or after December 27, 2007:

1. Wellington Management Company

A.   Core Allocation Plus Fund

2. MFC Global Investment Management (U.S.A.) Limited

A.   Retirement Distribution Portfolio

B.   Retirement Rising Distribution Portfolio

Evaluation by the Board of Trustees

The Board, including the Independent Trustees, is responsible for selecting the Trust’s adviser, John Hancock Investment Management Services, LLC (the “Adviser” or “JHIMS”), approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust and approving the Trust’s advisory and subadvisory (and any sub-subadvisory) agreements, their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 are:

1.   the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;

2.   the investment performance of the Funds and their subadvisers;

3.   the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;

4.   the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and

5.   comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any sub-subadvisory agreements) with subadvisers not affiliated with the Adviser, the Board believes that, in view of the Trust’s “manager-of-managers” advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds and the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

Approval of Advisory Agreement

At its meeting on May 30, 2008, the Board, including all the Independent Trustees, approved the Advisory Agreement.

In approving the renewal of the Advisory Agreement, and with reference to the factors that it regularly considers, the Board:

(1)–(a) considered the high value to the Trust of continuing its relationship with JHIMS as the Trust’s adviser, the skills and competency with which JHIMS has in the past managed the Trust’s affairs and its subadvisory relationships, JHIMS’s oversight and monitoring of the subadvisers’ investment performance and compliance programs including its timeliness in responding to performance issues and the qualifications of JHIMS’s personnel,

(b) considered JHIMS’s compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments, and

(c) considered JHIMS’s administrative capabilities, including its ability to supervise the other service providers for the Funds and concluded that JHIMS may reasonably be expected to continue to perform its services under the Advisory Agreement with respect to the Funds;

(2) reviewed the investment performance of each of the Funds; the comparative performance of their respective benchmarks, comparable funds (i.e., funds having approximately the same investment objective), if any; and JHIMS’s analysis of such performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally and with respect to particular Funds; and concluded that each of the Funds has generally performed well or within a range that the Board deemed competitive except as discussed in Appendix A and in such cases, that appropriate action is being taken to address performance, if necessary, or that such performance is reasonable in light of all factors considered, and that JHIMS may reasonably be expected to continue ably to monitor the performance of the Funds and each of their subadvisers;

(3) reviewed the Trust’s advisory fee structure and the incorporation therein of any subadvisory fee breakpoints in the advisory fees charged and concluded (i) that to the extent that Funds have subadvisory fees with breakpoints, those breakpoints are reflected as breakpoints in the advisory fees for Funds, (ii) that all Funds with a subadviser that is not affiliated with the Adviser have subadvisory fees which are the product of arm’s-length negotiations between the Adviser and the subadviser and which in many, but not all, cases contain breakpoints, and (iii) that, although economies of scale cannot be measured with precision, these arrangements permit shareholders of Funds with advisory fee breakpoints to benefit from economies of scale if those Funds grow;

(4)–(a) reviewed the financial statements of JHIMS and considered an analysis presented by JHIMS regarding the net profitability to JHIMS of each Fund,

(b) reviewed the profitability of the JHIMS’s relationship with each Fund in terms of the total amount of annual advisory fees it received with respect to the Fund and whether JHIMS has the financial ability to continue to provide a high level of services to the Fund,

(c) considered that JHIMS derives reputational and other indirect benefits from providing advisory services to the Funds, and

(d) noted that JHIMS pays the subadvisory fees out of the advisory fees JHIMS receives from the Funds and concluded that the advisory fees paid by the Trust with respect to the Funds are not unreasonable in light of such information; and

(5) reviewed comparative information with respect to the advisory fee rates and concluded that the Trust’s advisory fees are generally within a competitive range of those incurred by other comparable funds. In this regard, the Board took into account management’s discussion with respect to the advisory fee structure. The Board also noted that JHIMS is currently waiving fees and/or reimbursing expenses with respect to certain of the Funds and that the Adviser pays the subadvisory fees of the Funds. The Board also took into account the level and quality

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John Hancock Funds II
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (unaudited)

of services provided by JHIMS with respect to the Funds, as well as the other factors considered.

In addition, in the case of the Absolute Return Portfolio (a “Fund of Funds”), the Trustees reviewed the advisory fee to be paid to the Adviser for each Fund of Funds and concluded that the advisory fee to be paid to the Adviser with respect to each Fund of Funds 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 portfolios of the Fund of Funds and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund of Funds and those of its underlying portfolios.

Additional information that the Board considered in approving the Advisory Agreement is set forth in Appendix A.

Approval of Subadvisory Agreements

At its meeting on May 30, 2008, the Board, including all the Independent Trustees, renewed and approved the Subadvisory Agreements.

In making its determination with respect to the factors that its considers, the Board reviewed:

(1)   information relating to each subadviser’s business, which may include information such as: business performance, assets under management and personnel;

(2)   the historical and current performance of the Fund and comparative performance information relating to the Fund’s benchmark and comparable funds;

(3)   the subadvisory fee for each Fund and comparative fee information; and

(4)   information relating to the nature and scope of Material Relationships and their significance to the Trust’s adviser and unaffiliated subadvisers.

The Board noted that in the case of each sub-subadvisory agreement, that the sub-subadvisory fee would be paid by the subadviser out of the subadvisory fee and would not be an expense of the Fund.

The Board’s decision to approve each Subadvisory Agreement was based on a number of determinations, including the following:

(1)   The subadviser has extensive experience and demonstrated skills as a manager;

(2)   Although not without variation, the current and historical performance of each Fund managed by a subadviser has generally been in line with or outperformed the current and historical performance of comparable funds and the Fund’s respective benchmarks with the exceptions noted in Appendix A (with respect to such exceptions, the Board concluded that appropriate action was being taken to address such Funds’ performance, if necessary, or that performance was reasonable in light of all factors considered);

(3)   The subadvisory fees are generally competitive within the range of industry norms and, with respect to each subadviser that is not affiliated with the Adviser, are a product of arm’s-length negotiation between the Adviser and the subadviser;

(4)   With respect to those Funds that have subadvisory fees that contain breakpoints, such breakpoints are reflected as breakpoints in the advisory fees for the Funds in order to permit shareholders to benefit from economies of scale if those Funds grow; and

(5)   The Material Relationships consist of arrangements in which unaffiliated subadvisers or their affiliates provide advisory, distribution or management services in connection with financial products sponsored by the Trust’s adviser or its affiliates, which may include other registered investment companies, a 529 education savings plan, managed separate accounts and exempt group annuity contracts sold to qualified plans, and which in no case contained elements which would cause the Board to conclude that approval of the subadvisory agreement with the subadviser would be inappropriate. See (6) below for information relating to the business arrangement between the Trust’s Adviser and Grantham, Mayo, Van Otterloo & Co. LLC (“GMO”). See (7) below for information relating to the business arrangement between the parent company of the Trust’s Adviser and the parent company of Independence Investments LLC.

(6)   As a part of the overall business arrangement between the Adviser and GMO under which the Adviser has obtained exclusive rights to certain GMO investment management services for up to five years, the Adviser has agreed that under certain circumstances it (and not the Trust or the particular Fund) will pay GMO a specified amount (up to $25 million in the aggregate for all portfolios subadvised by GMO (the “GMO Funds”)) if the subadvisory agreement with respect to the GMO Funds is terminated within a five year period from the date of its effectiveness.

The Adviser has also agreed that, subject to its fiduciary duties as an investment adviser to each of the GMO Funds and its shareholders, it will not recommend to the Board of Trustees to terminate the subadvisory agreement with respect to any of the GMO Funds or to reduce any of the fees payable thereunder to GMO for a five year period from the date of effectiveness of the agreement. The Trust is not a party to any of these arrangements, and they are not binding upon the Trust, the GMO Funds or the Board of Trustees. However, these arrangements present certain conflicts of interest because the Adviser has a financial incentive to support the continuation of GMO subadvisory agreements for as long as the termination provisions described above remain in effect. In approving the Advisory Agreement and the subadvisory agreement with respect to each of the GMO Funds, the Board of Trustees, including the Independent Trustees, was aware of and considered these potential conflicts of interest, including any financial obligations of the Adviser to GMO.

The Board concluded that, notwithstanding the potential conflicts of interest, approval of the Advisory Agreement and the subadvisory agreements with GMO is in the best interests of shareholders and contract owners in view of (i) the Adviser’s fiduciary duty and the Board’s fiduciary duty and ability to monitor potential conflicts, (ii) the benefits to shareholders and contract owners generally expected from the exclusive rights to certain GMO investment management services obtained by the Adviser for the benefit of certain Funds of the Trust and other John Hancock funds and (iii) the benefits to such Funds of the Trust expected from the subadvisory services of GMO.

(7)   Independence Investments LLC (“New Independence”), a subsidiary of Convergent Capital Management LLC (“Convergent”), is the subadviser to the Small Cap Fund (the “Independence Fund”). New Independence replaced Independence Investment LLC (“Old Independence”), a subsidiary of Manulife Financial Corporation (“MFC”), as subadviser to the Fund on May 31, 2006. New Independence is the successor to substantially all of the business operations of Old Independence and assumed substantially all the assets and certain of the liabilities of Old Independence pursuant to an agreement between Old Independence, New Independence, the parent of Convergent and a subsidiary of MFC.

In consideration for the transfer of assets and liabilities of Old Independence to New Independence as described above, Convergent paid MFC a specified amount at closing. MFC will also receive additional consideration on certain anniversary dates of the closing to the extent the revenue received by New Independence from the management of proprietary accounts of MFC and its affiliates or accounts for which MFC or its affiliates act as investment adviser, including the Independence Fund, meet certain revenue targets. Consequently, while these contingent payments are not dependent upon the approval or continuation of the subadvisory agreements with respect to the Independence Fund, the revenues earned by New Independence as a result of its subadvisory relationship with the Independence Fund would count towards the revenue target necessary for MFC to earn the contingent payments. Nothing in the arrangements between MFC and Convergent imposes

471

John Hancock Funds II
Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees (unaudited)

any limitations upon the rights of the Adviser, the Independence Fund’s adviser, to recommend termination of the subadvisory agreements with New Independence. However, these arrangements present certain conflicts of interest because MFC, as the ultimate parent entity of the Adviser, has a financial incentive to influence the Adviser to support the continuation of the subadvisory agreements with New Independence for the periods for which contingent payments may be made to MFC. The Board concluded that, notwithstanding the potential conflicts of interest, approval of the Advisory Agreement and the subadvisory agreement with New Independence is in the best interests of shareholders.

In addition, in the case of the Fund of Funds, the Trustees reviewed the subadvisory fee to be paid to the subadviser for each Fund of Funds and concluded that the subadvisory fee to be paid to the subadviser with respect to each Fund of Funds is based on services provided that are in addition to, rather than duplicative of, the services provided pursuant to the subadvisory agreements for the underlying portfolios of the Fund of Funds and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund of Funds and those of its underlying portfolios.

Additional information that the Board considered for a particular Fund is set forth in Appendix A.

472

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
500 Index Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are higher than the peer group median.	The Board noted that performance of the Fund is within the expected tracking error guidelines gross of fees over all available time periods. The Board also noted the relatively small range among returns within the Fund’s peer group. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Absolute Return Portfolio (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are higher than the peer group median. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are higher than the peer group median.	The Board noted that the Fund outperformed the peer group average during the first five months of 2008. While total expenses are higher than the peer group median, the Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board also took into account management’s discussion of the Fund’s expenses.
Active Bond Fund (Declaration Management & Research LLC) (MFC Global Investment Management (U.S.), LLC)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s investment style and current market conditions. The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also noted that that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund.
All Cap Core Fund (Deutsche Asset Management, Inc.)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are lower than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s more recent performance, including the subadviser’s investment style and current market conditions. The Board also noted that that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund.

473

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
All Cap Growth Fund (AIM Capital Management, Inc.)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are modestly lower than the peer group median.	The Board noted that a new portfolio manager assumed responsibility for the Fund in February 2008; therefore, the Fund’s long term performance reflects the performance of the previous portfolio manager. The Board requested that management monitor this Fund closely due to the change in the portfolio manager.
All Cap Value Fund (Lord, Abbett & Co.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are lower than the peer group median.
Blue Chip Growth Fund (T. Rowe Price Associates, Inc.)	The Fund outperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that the Fund is subject to a voluntary fee waiver, which reduces certain expenses of the Fund. The Board noted that although the advisory fees and total expenses of the Fund are slightly higher than the peer group median, the overall performance of the Fund and the Blue Chip Growth Trust, a fund managed by the subadviser in a style similar to the Fund has been favorable.
Capital Appreciation Fund (Jennison Associates LLC)	The Fund underperformed the benchmark index the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account management’s discussion of the Fund’s more recent performance. The Board also noted that that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund.

474

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Core Bond Fund (Wells Capital Management, Incorporated)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that there was a portfolio manager change in February 2007. The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also noted that that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund.
Core Equity Fund (Legg Mason Funds Management, Inc.)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s investment style and current market conditions as well as the favorable long term performance over the ten- and fifteen-year periods of a mutual fund managed in a similar style by Legg Mason. The Board requested that management continue to closely monitor performance and if it does not improve in the near future to discuss with the Board proposals to remedy the underperformance.
Emerging Growth Fund (MFC Global Investment Management (U.S.), LLC)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are lower than the peer group median.	The Board noted that a new portfolio manager assumed responsibility for the Fund in April 2006. The Board noted that the Fund continues to underperform. The Board requested management to provide a specific recommendation to address the Fund’s underperformance.
Emerging Markets Value Fund (Dimensional Fund Advisors)	See “Other Comments.”	Subadvisory fees for this Fund are modestly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are modestly lower than the peer group median.	The Fund recently commenced operations on May 1, 2007 and has limited performance history. In reviewing the Fund, the Board considered this limited performance history and also took into account the favorable long term performance over the one-, three-, and five-year periods of a mutual fund managed in a similar style by Dimensional Fund Advisors.

475

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Emerging Small Company Fund (RCM)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board requested that management continue to closely monitor the Fund’s performance.
Equity-Income Fund (T. Rowe Price Associates, Inc.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that although the advisory fees of the Fund are modestly higher than the peer group median and the total expenses of the Fund are slightly higher than the peer group median, the overall performance of the Fund has been favorable. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Fundamental Value Fund (Davis Selected Advisers, L.P.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted although the advisory fees and total expenses of the Fund are slightly higher than the peer group median, the overall performance of the Fund has been favorable. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Global Asset Allocation Fund (Wellington Management Company, LLP)	None	Subadvisory fees for this Fund were higher than its peer group median. Advisory fees for this Fund were higher than its peer group median.	The Board noted that the Fund has not yet commenced operations. The Board further noted that Wellington manages several JHT funds and it is generally satisfied with the performance of those funds.

476

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Global Bond Fund (Pacific Investment Management Company)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board noted that although the Fund underperformed its benchmark index over the one- year period, it outperformed the Morningstar Category Average over this period.
Global Real Estate Fund (Deutsche Asset Management, Inc.)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly higher than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s performance, including that the Fund’s performance was generally in-line or slightly lagged the benchmark over the period. The Board also took into account management’s discussion of the Fund’s peer group, noting that such peer group was relatively small and contained many domestic funds. The Board also noted that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund. The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure and the Fund’s peer group, which consists primarily of domestic funds.
High Income Fund (MFC Global Investment Management, U.S.)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s investment style and current market conditions as well as the favorable long term performance over the three- five- and ten- year periods of a mutual fund managed in a similar style by MFC Global Investment Management (U.S.).

477

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
High Yield Fund (Western Asset Management Company)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account management’s discussion of the Fund’s performance, including the relatively small range in returns among the peer group. The Board also noted that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund.
International Equity Index Fund (SSgA Funds Management, Inc.)	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
International Opportunities Fund (Marsico Capital Management, LLC)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are equal to the peer group median.
International Small Cap Fund (Franklin Templeton Investment Corp.)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.The Fund underperformed the benchmark index over the one-, three-, five-, and ten-year periods.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board noted that a new lead portfolio manager assumed responsibility for the Fund in March 2008; therefore, the Fund’s long term performance reflects the performance of the previous portfolio manager.
International Small Company Fund (Dimensional Fund Advisors)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are equal to the peer group median.	The Fund recently commenced operations. In reviewing the Fund, the Board took into account the favorable long term performance over the three- and five- year periods of a mutual fund managed in a similar style by Dimensional Fund Advisors. The Board noted the small number of funds in the peer group for this Fund.

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John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
International Value Fund (Templeton Investment Counsel, Inc.)	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are equal to the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the portfolio manager’s contrarian investment style. The Board noted that the Fund outperformed the peer group average over the one-year period.
Investment Quality Bond Fund (Wellington Management Company, LLP)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted the Fund’s outperformance relative to the peer group average.
Large Cap Fund (UBS Global Asset Management)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account the longer-term performance history of the comparable mutual fund after which the Fund is modeled, noting that it has outperformed its peer group average over the five- and ten-year periods. The Board requested that this Fund be monitored closely due to recent underperformance.
Large Cap Value Fund (BlackRock Investment Management, LLC)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Mid Cap Index Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board noted that performance of the Fund is within the expected tracking error guidelines gross of fees over all available time periods. The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.

479

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Mid Cap Intersection Fund (Wellington Management Company, LLP)	See “Other Comments.”	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Fund recently commenced operations. In reviewing the Fund, the Board took into account the Fund’s limited performance history. The Board noted that the Fund outperformed the peer group average during the first five months of 2008.
Mid Cap Stock Fund (Wellington Management Company, LLP)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are equal to the peer group median.	The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also noted that while advisory fees are slightly higher than the peer group median, the Fund outperformed its peer group and index over the one-year period.
Mid Cap Value Fund (Lord, Abbett & Co.)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s performance and the portfolio manager’s contrarian investment style, which at times will not track closely to its peer group or index. The Board requested that management closely monitor the Fund. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.

480

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Mid Cap Value Equity Fund (RiverSource Investments LLC)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that although the advisory fees and total expenses of the Fund are slightly higher than the peer group median, the overall performance of the Fund, including the long term performance over the three- and five- year periods of a mutual fund managed in a similar style by Riversource Investments LLC, has been favorable. The Fund recently commenced operations on April 28, 2006 and has limited performance history. In reviewing the Fund, the Board took into account this limited performance record. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Natural Resources Fund (Wellington Management Company, LLP)	The Fund outperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also noted that while advisory fees are slightly higher than the peer group median, the Fund outperformed its peer group and index over the one-year period.
Optimized All Cap Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account management’s discussion of the Fund’s performance. The Board noted that that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund

481

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Real Estate Equity Fund (T. Rowe Price, Inc.)	The Fund’s performance equaled the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Fund recently commenced operations on April 28, 2006 and has limited performance history. In reviewing the Fund, the Board also took into account the favorable long term performance over the three- and five- year periods of a mutual fund managed in a similar style by T. Rowe Price, Inc. The Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Real Estate Securities Fund (Deutsche Asset Management, Inc.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are modestly lower than the peer group median. Total expenses for this Fund are modestly lower than the peer group median.

482

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Real Return Bond Fund (Pacific Investment Management Company)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Fund has limited performance history. In reviewing the Fund the Board took into account the favorable long term performance over the five- year period of a mutual fund managed in a similar style by Pacific Investment Management Company. The Board noted a reduction in the subadvisory and advisory fee effective in 2007. The Board noted that although the advisory fees for the Fund are modestly higher than the peer group median and the total expenses for the Fund are slightly higher than the peer group median, the performance of the Fund and a mutual fund managed in a style similar to the Fund as discussed in the paragraph above has been favorable. In reviewing the Fund’s expenses and performance, the Board noted the relatively small size of the peer group. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Small Cap Fund (Independence Investment LLC)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Advisory fees for this Fund are slightly lower than the peer group median. Total expenses for this Fund are slightly lower than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance including the subadviser’s investment style. The Board requested that management closely monitor the performance of the Fund. The Board requested management to provide a specific recommendation to address the Fund’s underperformance.
Small Cap Index Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board noted that performance is within the expected tracking error guidelines gross of fees over all available time periods. The Board took into account management’s discussion of the Trust’s expenses, including the advisory / subadvisory fee structure.

483

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Small Cap Opportunities Fund (Munder Capital Management)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year periods.	Subadvisory fees for this Fund are modestly higher than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s investment style and current market conditions, and the steps to be taken by management to address the Fund’s underperformance. The Board also noted the longer-term performance history of the subadviser’s comparable retail fund. The Board took into account management’s discussion of the Fund’s expenses.
Small Company Fund (American Century Investment Management, Inc.)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are higher than the peer group median. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are higher than the peer group median.	The inception date of the Fund was October 14, 2005. The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s quantitative investment style and the interaction of market conditions with the quantitative model. The Board further noted that performance of the comparable fund after which the Fund is modeled outperforms its benchmark index and peer group average since its inception in August 1998. With respect to the Fund’s expenses, the Board noted the limited capacity of small cap funds generally and took into account management’s discussion of the advisory fee schedule, which was seen as competitive with current market rates.
Small Company Growth Fund (AIM Capital Management, Inc.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also noted that while advisory fees are modestly higher than the peer group median, the Fund outperformed its peer group and index over the one-year period.

484

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Small Company Value Fund (T. Rowe Price Associates, Inc.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly higher than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that although the advisory fees and total expenses for the Fund are slightly higher than the peer group median, the performance of the Fund has been favorable. The Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Spectrum Income Fund (T. Rowe Price Associates, Inc.)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are higher than the peer group median. Total expenses for this Fund are higher than the peer group median.	The Fund has limited performance history. In reviewing the Fund, the Board also took into account the favorable long term performance over the three- and five- year periods of a mutual fund managed in a similar style by T. Rowe Price Associates, Inc. The Board noted that although the advisory fees and total expenses for the Fund are higher than the peer group median and the subadvisory fees for the Fund are slightly higher than the peer group median, the performance of the Fund and a mutual fund managed in a style similar to the Fund has been favorable. The Board noted that the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.

485

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Strategic Bond Fund (Western Asset Management Company)	The Fund underperformed the benchmark index over the one- period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the effect of the subadviser’s investment style on its performance versus its peer group. The Board noted that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund. The Board took into account management’s discussion of the Fund’s expenses.
Strategic Income Fund (MFC Global Investment Management (U.S.))	The Fund underperformed the benchmark index over the one- year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are modestly higher than the peer group median.	The Board noted that although the advisory fees and total expenses for the Fund are modestly higher than the peer group median, the Fund outperformed the Morningstar Category Average over the one- year period. The Board also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Total Bond Market Fund (Declaration Management & Research LLC)	The Fund underperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are lower than the peer group median.	The Board noted that performance of the Fund is within the expected tracking error guidelines gross of fees over the one-year period.
Total Return Fund (Pacific Investment Management Company)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board noted that although the advisory fees for the Fund are modestly higher and the total expenses for the Fund are slightly higher than the peer group median, the performance of the Fund has been favorable. The Board also took into account management’s discussion of the Trust’s expenses, including the advisory / subadvisory fee structure.

486

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
U.S. Government Securities Fund (Western Asset Management Company)	The Fund underperformed the benchmark index over the one- year period. The Fund underperformed the Morningstar Category Average over the one-period.	Subadvisory fees for this Fund are equal to the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the effect of the subadviser’s investment style on its performance versus its peer group. The Board requested that management continue to closely monitor the Fund. The Board noted that that the Fund had only recently commenced operations and took into account the relatively limited performance history of the Fund The Board took into account management’s discussion of the Fund’s expenses.
U.S. High Yield Bond Fund (Wells Capital Management, Incorporated)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses.
U.S. Multi Sector Fund (Grantham, Mayo, Van Otterloo & Co., LLC)	The Fund underperformed the benchmark index over the one-year period. The Fund underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are slightly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s investment style and current market conditions. The Board requested that management continue to closely monitor performance. The Board took into account management’s discussion of the Fund’s expenses.
Value Fund (Morgan Stanley Investment Management Inc. (Van Kampen))	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Advisory fees for this Fund are lower than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses.

487

John Hancock Funds II
Appendix A to Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees

PORTFOLIO (SUBADVISER)	Performance of Fund as of March 31, 2008	Fees and Expenses	Other Comments
Value & Restructuring Fund (Columbia Management Advisors, LLC)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses.
Vista Fund (American Century Investment Management, Inc.)	The Fund outperformed the benchmark index over the one-year period. The Fund outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Advisory fees for this Fund are modestly higher than the peer group median. Total expenses for this Fund are slightly higher than the peer group median.	The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also noted that while advisory fees are modestly higher than the peer group median, the Fund outperformed its peer group and index over the one-year period.

 

488

John Hancock Funds II
Approval of Advisory and Subadvisory Agreements to Add New Portfolios

At its meeting on June 26-27, 2008, the Board, including all of the Independent Trustees, approved the following new portfolios for the Trust: (i) American Diversified Growth & Income Portfolio, (ii) American Fundamental Holdings Portfolio, and (iii) American Global Diversification Portfolio (collectively, the American Diversified Growth & Income Portfolio, American Fundamental Holdings Portfolio and American Global Diversification Portfolio are referred to as the “New Portfolios”).

This section describes the evaluation by the Board of Trustees of:

(a)   an amendment (the “Advisory Agreement Amendment”) to the advisory agreement between the Trust and the Adviser to add the New Portfolios.

(b)   an amendment to the subadvisory agreement between the Adviser and MFC Global Investment Management (U.S.A.) Limited (the “Subadviser”) to add the New Portfolios (the “Subadvisory Agreement Amendment”).

The Board, including the Independent Trustees, is responsible for selecting the Trust’s Adviser, approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust (the “Funds”) and approving the Trust’s advisory and subadvisory agreements (and any sub-subadvisory agreements), their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 are:

1.   the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;

2.   the investment performance of the Funds and their subadvisers;

3.   the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Fund shareholders;

4.   the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and

5.   comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any sub-subadvisory agreements) with entities that are not affiliated with the Adviser, the Board believes that, in view of the Trust’s “manager-of-managers” advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds and the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers any other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

Approval of Advisory Agreement

At its meeting on June 26-27, 2008, the Board, including all the Independent Trustees, approved the Advisory Agreement Amendment. In approving the Advisory Agreement Amendment, and with reference to the factors that it regularly considers, the Board:

(1)–(a) considered the high value to the Trust of continuing its relationship with JHIMS as the Trust’s adviser, the skills and competency with which JHIMS has in the past managed the Trust’s affairs and its subadvisory relationships, JHIMS’s oversight and monitoring of the subadvisers’ investment performance and compliance programs including its timeliness in responding to performance issues and the qualifications of JHIMS’ personnel,

(b) considered JHIMS’s compliance policies and procedures and its responsiveness to regulatory changes and mutual fund industry developments, and

(c) considered JHIMS’s administrative capabilities, including its ability to supervise the other service providers for the Funds and concluded that JHIMS may reasonably be expected to perform its services under the Advisory Agreement with respect to the New Portfolios;

(2) reviewed the advisory fee structure for the New Portfolios and the incorporation of the subadvisory fee breakpoints (as described below under “Approval of Subadvisory Agreements” below) and concluded that, although economies of scale cannot be measured with precision, for New Portfolios with subadvisory fee breakpoints these arrangements permit shareholders of the New Portfolios to benefit from economies of scale if the assets of such funds grow;

(3)–(a) reviewed the anticipated profitability of the JHIMS’s and its affiliates’ relationship with the New Portfolios in terms of the total amount of annual advisory fees it then would receive with respect to the New Portfolios and whether JHIMS has the financial ability to provide a high level of services to the New Portfolios,

(b) considered that JHIMS derives reputational and other indirect benefits from providing advisory services to the New Portfolios, and

(c) noted that JHIMS will pay the subadvisory fee out of the advisory fees JHIMS will receive from the New Portfolios and concluded that the advisory fees to be paid by the Trust with respect to these funds are not unreasonable in light of such information; and

(4)–(a) reviewed comparative information with respect to the advisory fee rates and concluded that the anticipated advisory fees for the New Portfolios are generally within a competitive range of those incurred by other comparable funds. In this regard, the Board took into account management’s discussion with respect to the advisory fee structure. The Board also noted that the Adviser pays the subadvisory fees of New Portfolios. The Board also took into account the level and quality of services expected to be provided by JHIMS with respect to the New Portfolios, as well as the other factors considered.

In addition, the Trustees reviewed the advisory fee to be paid to the Adviser for the New Portfolios and concluded that the advisory fee to be paid to the Adviser with respect to the New Portfolios 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 portfolios of the New Portfolios and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of the New Portfolios and those of its underlying portfolios.

Additional information that the Board considered in approving the Advisory Agreement Amendment is set forth in Appendix A.

489

John Hancock Funds II
Approval of Advisory and Subadvisory Agreements to Add New Portfolios

Approval of Subadvisory Agreements

At its meeting on June 26-27, 2008, the Board, including all the Independent Trustees, approved the Subadvisory Agreement Amendment. In making its determination with respect to the Subadvisory Agreement Amendment and with reference to the factors that it considers, the Board reviewed or considered:

(1)   information relating to each Subadviser’s business, including with respect to current subadvisory services to the Trust;

(2)   that the Subadviser currently provides subadvisory services to the Trust or John Hancock Trust;

(3)   that the Subadviser has extensive experience and demonstrated skills as a manager;

(3)   the investment performance of any other Trust or John Hancock Trust funds managed by each Subadviser; and

(4)   the proposed subadvisory fee for each New Portfolio and comparative fee information.

The Board’s decision to approve the Subadvisory Agreement Amendment was based on a number of determinations, including the following:

(1)   The Subadviser currently manages other funds of the Trust and John Hancock Trust and the Board is generally satisfied with the Subadviser’s management of these funds;

(2)   The subadvisory fees under the new subadvisory agreements are: (i) within industry norms and (ii) paid by the Adviser and not by the Portfolio;

(3)   In the case of each New Portfolio, subadvisory breakpoints are reflected as breakpoints in the advisory fees for the Portfolios; and

(4)   the performance of the comparably managed portfolios of the Subadviser as set forth in Appendix A.

In addition, the Trustees reviewed the subadvisory fee to be paid to the Subadviser for the New Portfolios and concluded that the subadvisory fees to be paid to the Subadviser with respect to the Portfolios are based on services provided that are in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios of the New Portfolios and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of the New Portfolios and those of its underlying portfolios.

490

John Hancock Funds II
Appendix A to Approval of Advisory and Subadvisory Agreements to Add New Portfolios

FUND (Subadviser)	Comparable Fund Performance as of March 31, 2008	Estimated Fees and Expenses as of March 31, 2008	Other Comments
American Diversified Growth & Income Portfolio (MFC Global Investment Management (U.S.A.) Limited)	Not Applicable	Subadvisory fees for this Fund were lower than its peer group median. Advisory fees for this Fund were lower than its peer group median.	The Board noted that the Fund has not yet commenced operations. The Board further noted that the subadviser manages several other JHT and JHF II funds and that it is generally satisfied with the performance of these funds.
American Fundamental Holdings Portfolio (MFC Global Investment Management (U.S.A.) Limited)	The JHT American Fundamental Holdings Portfolio, a fund managed by the subadviser in a style similar to the American Fundamental Holdings Portfolio, commenced operations on October 30, 2007 and has underperformed its peer group and benchmark since October 30, 2007.	Subadvisory fees for this Fund were lower than its peer group median. Advisory fees for this Fund were lower than its peer group median.	The Board noted that the Fund has not yet commenced operations. The Board further noted that the subadviser manages several other JHT and JHF II funds and that it is generally satisfied with the performance of these funds.
American Global Diversification Portfolio (MFC Global Investment Management (U.S.A.) Limited)	The JHT American Global Diversification Portfolio, a fund managed by the subadviser in a style similar to the American Global Diversification Portfolio, commenced operations on October 30, 2007 and has underperformed its peer group and benchmark since October 30, 2007.	Subadvisory fees for this Fund were lower than its peer group median. Advisory fees for this Fund were lower than its peer group median.	The Board noted that the Fund has not yet commenced operations. The Board further noted that the subadviser manages several other JHT and JHF II funds and that it is generally satisfied with the performance of these funds.

 

491

John Hancock Funds II

Approval of Invesco AIM Capital Management Inc. as an Additional Subadviser to the Small Cap Opportunities Fund

At its meeting on June 26-27, 2008, the Board, including all of the Independent Trustees, approved the addition of Invesco AIM Capital Management Inc. (“AIM” or “Subadviser”) as an additional subadviser to the Small Cap Opportunities Fund (the “Fund”), a series of the Trust.

The Board, including the Independent Trustees, is responsible for selecting the Trust’s investment adviser, approving the Adviser’s selection of Trust subadvisers and approving the Trust’s advisory and subadvisory agreements, their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and 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 are:

1.   the nature, extent and quality of the services to be provided by the Adviser to the Trust and 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 shareholders of the Fund;

4.   the costs of the services to be provided and the profits to be realized by the Adviser (including any subadvisers affiliated with the Adviser) and its affiliates from the Adviser’s relationship with the Trust; and

5.   comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all these factors is relevant to its evaluation of the Trust’s advisory agreements. With respect to its evaluation of subadvisory agreements with subadvisers not affiliated with the Adviser, the Board believes that, in view of the Trust’s “manager-of-managers” advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust, generally, are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid to subadvisers by the Adviser and not by the Funds and because the Board relies on the ability of the Adviser to negotiate such subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

In making its determination with respect to the factors that it considers, the Board reviewed:

1.   information relating to the Subadviser’s current subadvisory services to the Trust;

2.   the performance of the Fund and the performance of other funds managed by AIM with investment policies similar to those of the Fund;

3.   the subadvisory fee to be paid to AIM for management of its portion of the Fund, including any breakpoints; and

4.   information relating to the nature and scope of Material Relationships and their significance to the Adviser and the Subadviser.

Particular considerations of the Board in approving the new subadvisory agreement with AIM for the Fund at the June 26-27, 2008 Board meeting included the following:

1.   AIM has demonstrated skills as a manager, is currently the subadviser to two funds of John Hancock Trust and two funds of the Trust and may be expected to provide a high quality of investment management services and personnel to the Fund;

2.   The Small Company Growth Fund, a series of the Trust, a fund managed by AIM with a broadly similar investment approach to the portion of the Fund to be subadvised by AIM, has outperformed its peer group and index since its inception on October 14, 2005 through March 31, 2008; and

3.   The subadvisory fee with respect to the portion of the assets of the Fund to be managed by AIM under the new subadvisory agreement (i) is the product of arm’s-length negotiation between the Adviser and AIM, (ii) is within industry norms; and (iii) is paid by the Adviser and not by the Fund, and in connection with the appointment of AIM, the subadvisory fee breakpoint with respect to the portion of the assets of the Fund to be managed by Munder would be reduced.

Approval of Franklin Templeton Investment Corp. as Subadviser to International Small Cap Fund

At its meeting on March 26, 2008, the Board, including all of the Independent Trustees, approved a change in the subadviser for the International Small Cap Fund (the “Fund”), a series of the Trust, from Templeton Investment Counsel, LLC (the “Old Subadviser”) to Franklin Templeton Investment Corp. (the “New Subadviser”) and in connection therewith approved the subadvisory agreement (the “New Subadvisory Agreement”) between the New Subadviser and the Adviser relating to the Fund. Both the Old Subadviser and the New Subadviser are controlled by Franklin Resources, Inc.

The Board, including the Independent Trustees, is responsible for selecting the Trust’s Adviser, approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust (the “Funds”) and approving the Trust’s advisory and subadvisory agreements (and any sub-subadvisory agreements), their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 separately assisted by independent legal counsel. The factors considered by the Board are:

1.   the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;

2.   the investment performance of the Funds and their subadvisers;

3.   the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;

4.   the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and

5.   comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any sub-subadvisory agreements) with entities that are not affiliated with the Adviser, the Board believes that, in view

492

John Hancock Funds II
    

of the Trust’s “manager-of-managers” advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds. Furthermore, the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arm’s-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

At its meeting on March 26, 2008, the Board, including all the Independent Trustees, approved the New Subadvisory Agreement.

In making its determination with respect to the subadvisory agreement, and with reference to the factors that it considers, the Board reviewed or considered:

(1)   that the New Subadviser and portfolio manager have extensive experience and demonstrated skills as a manager;

(2)   that the New Subadviser is an affiliate of the Old Subadviser to the Fund and both are controlled by Franklin Resources, Inc.;

(3)   that the New Subadvisory Agreement is being entered into order to effect a portfolio manager change;

(4)   the investment performance of the Fund and other funds of the Trust or John Hancock Trust funds managed by the Subadviser and its affiliates;

(5)   the proposed subadvisory fee for the Fund; and

(6)   information relating to the nature and scope of Material Relationships, if any, and their significance to the Trust’s adviser and unaffiliated subadvisers.

The Board’s decision to approve the New Subadvisory Agreement was based on a number of determinations, including the following:

(1)   Affiliates of the New Subadviser currently manage other funds of the Trust and John Hancock Trust and the Board is generally satisfied with its management of these funds.

(2)   The change in subadviser for the Fund is being effected in order to accommodate a portfolio manager change.

(3)   The New Subadviser is expected to manage the Fund with the same investment objective and policies under the New Subadvisory Agreement as the Old Subadviser did under its subadvisory agreement with the Adviser relating to the Fund (the “Old Subadvisory Agreement”), and the New Subadviser may generally be expected to provide at least the same level and quality of management services under the New Subadvisory Agreement as the Old Subadviser did under the Old Subadvisory Agreement.

(4)   The subadvisory fee under the New Subadvisory Agreement: (i) is the product of arm’s-length negotiations between the Adviser and the New Subadviser; (ii) is within industry norms; (iii) is the same as the fee under the Old Subadvisory Agreement; (iv) is paid by the Adviser and not by the Fund; (v) will not result in any advisory fee increase with respect to the Fund; and (vi) contains breakpoints which are reflected in the advisory fee for the Fund, thus permitting shareholders to benefit from economies of scale.

Approval of Columbia Management Advisors, LLC as Subadviser to Value & Restructuring Fund

At its meeting on March 26, 2008, the Board, including all of the Independent Trustees, approved the subadvisory agreement (the “Subadvisory Agreement”) between Columbia Management Advisors, LLC (the “Subadviser”) and the Adviser relating to the Value & Restructuring Fund (the “Fund”), a series of the Trust, in connection with the merger of the current subadviser to the Fund, UST Advisers, Inc. (“USTA”) into the Subadviser (the “Transaction”).

The Board, including the Independent Trustees, is responsible for selecting the Trust’s Adviser, approving the Adviser’s selection of subadvisers for each of the portfolios of the Trust (the “Funds”) and approving the Trust’s advisory and subadvisory agreements (and any sub-subadvisory agreements), their periodic continuation and any amendments. Consistent with SEC rules, the Board regularly evaluates the Trust’s advisory and subadvisory 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 are:

1.   the nature, extent and quality of the services to be provided by the Adviser to the Trust and by the subadvisers to the Funds;

2.   the investment performance of the Funds and their subadvisers;

3.   the extent to which economies of scale would be realized as a Fund grows and whether fee levels reflect these economies of scale for the benefit of Trust shareholders;

4.   the costs of the services to be provided and the profits to be realized by the Adviser and its affiliates (including any subadvisers that are affiliated with the Adviser) from the Adviser’s relationship with the Trust; and

5.   comparative services rendered and comparative advisory and subadvisory fee rates.

The Board believes that information relating to all of these factors is relevant to its evaluation of the Trust’s advisory agreement. With respect to its evaluation of subadvisory agreements (including any subadvisory agreements) with entities that are not affiliated with the Adviser, the Board believes that, in view of the Trust’s “manager-of-managers” advisory structure, the costs of the services to be provided and the profits to be realized by those subadvisers that are not affiliated with the Adviser from their relationship with the Trust generally are not a material factor in the Board’s consideration of these subadvisory agreements because such fees are paid by the Adviser and not by the Funds and the Board relies on the ability of the Adviser to negotiate the subadvisory fees at arms-length.

In evaluating subadvisory arrangements, the Board also considers other material business relationships that unaffiliated subadvisers and their affiliates have with the Adviser or its affiliates, including the involvement by certain affiliates of certain subadvisers in the distribution of financial products, including shares of the Trust, offered by the Adviser and other affiliates of the Adviser (“Material Relationships”).

At its meeting on March 26, 2008, the Board, including all the Independent Trustees, approved the Subadvisory Agreement.

In making its determination with respect to the factors that it considers, the Board reviewed or considered:

(1)   that the Subadviser has extensive experience and demonstrated skills as a manager;

(2)   that the Subadviser is an affiliate of the prior subadviser to the Fund, USTA;

(3)   that the subadvisory agreement between the Subadviser and the Adviser is being effected due to a corporate restructuring of the parent company of the Subadviser and USTA;

(4)   the investment performance of the Fund and other Trust or John Hancock Trust funds managed by USTA;

(5)   the proposed subadvisory fee for the Fund; and

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John Hancock Funds II
    

(6)   information relating to the nature and scope of Material Relationships and their significance to the Trust’s adviser and the Subadviser.

The Board’s decision to approve the Subadvisory Agreement was based on a number of determinations, including the following:

(1)   The Subadviser is expected to manage the Fund with the same investment objective, policies and portfolio managers under the Subadvisory Agreement as USTA did under its subadvisory agreement with the Adviser relating to the Fund (the “Old Subadvisory Agreement”), and the Subadviser may generally be expected to provide at least the same level and quality of management services under the Subadvisory Agreement as USTA did under the Old Subadvisory Agreement.

(2)   The Fund outperformed its index and peer group for the one year period ended December 31, 2007.

(3)   The subadvisory fee under the Subadvisory Agreement : (i) is the product of arm’s-length negotiations between the Adviser and the Subadviser; (ii) is within industry norms; (iii) is the same as the fee under the Old Subadvisory Agreement; (iv) is paid by the Adviser and not by the Fund; (v) will not result in any advisory fee increase with respect to the Fund; and (vi) contains breakpoints which are reflected in the advisory fee for the Fund thus permitting shareholders to benefit from economies of scale.

494

John Hancock Funds II
Trustees and Officers

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

Independent Trustees

Name, age Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
Theron S. Hoffman8, Born: 1947	2008		212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, T. Hoffman Associates, LLC (2003 – Present); Director, The Todd Organization (2003 – Present); President, Westport Resources Management (2006 – 2008); Partner / Operating Head & Senior Managing Director, Putnam Investments (2000 – 2003).
Steven M. Roberts8, Born: 1944	2008		212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Board of Governors Deputy Director, Federal Reserve System (2005 – 2008); Partner, KPMG (1987 – 2004).
Charles L. Bardelis6, Born: 1941	2005		212
Director, Island Commuter Corp. (Marine Transport). Trustee of John Hancock Trust (since 1988) and former Trustee of John Hancock Funds III (2005 – 2006).
Peter S. Burgess6, Born: 1942	2005		212
Consultant (financial, accounting and auditing matters (since 1999); Certified Public Accountant. Director of the following publicly traded companies: PMA Capital Corporation (since 2004) and Lincoln Educational Services Corporation (since 2004). Trustee of John Hancock Trust (since 2005), and former Trustee of John Hancock Funds III (2005 – 2006).
Elizabeth G. Cook7, Born: 1937	2005		212
Expressive Arts Therapist, Massachusetts General Hospital (September 2001 to June 2007); Expressive Arts Therapist, Dana Farber Cancer Institute (September 2000 to January 2004); Trustee of John Hancock Trust (since 2005) and former Trustee of John Hancock Funds III (2005 – 2006).
Hassell H. McClellan7, Born: 1945	2005		212
Associate Professor, The Wallace E. Carroll School of Management, Boston College. Trustee of John Hancock Trust (since 2005), former Trustee of John Hancock Funds III (2005 – 2006) and Trustee of Phoenix Edge Series Fund (since 2008).
James M. Oates6, Born: 1946	2005		212
Managing Director, Wydown Group (financial consulting firm); Chairman, Emerson Investment Management, Inc.; Chairman, Hudson Castle Group, Inc. (formerly IBEX Capital Markets, Inc.) (financial services company) (1997 – 2006). Director of the following publicly traded companies: Stifel Financial; and Connecticut River Bancorp. Director, Phoenix Mutual Funds (overseeing 20 portfolios). Trustee of John Hancock Trust (since 2004) and former Trustee of John Hancock Funds III (2005 – 2006).

 

495

John Hancock Funds II
Trustees and Officers — continued

Non-Independent Trustees²

Name, age Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
Grace K. Fey9,10,Born: 1946	2008		212
Trustee of John Hancock Trust and John Hancock Funds II (since September 2008); Chief Executive Officer, Grace Fey Advisors (2007 – Present); Director & Executive Vice President, Frontier Capital Management Company (1988 – 2007).
James R. Boyle3, Born: 1959	2005		267
President, John Hancock Annuities; Executive Vice President, John Hancock Life Insurance Company (since June, 2004); President U.S. Annuities; Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (prior to 2004).

 

Trustee Emeritus

Name, age Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years	Trustee of Fund since1	Number of John Hancock funds overseen by Trustee
John D. Richardson4,5, Born: 1938	2006		212
Former Trustee of JHT (Retired, December 14, 2006). Former Senior Executive Vice President, Office of the President, MFC, February 2000 to March 2002 (Retired, March, 2002); Executive Vice President and General Manager, U.S. Operations, Manulife Financial, January 1995 to January 2000.

 

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

² Non-Independent Trustee: holds positions with affiliates of the Fund’s investment adviser.

³ Mr. Boyle is an “interested person” (as defined in the 1940 Act) due to his prior position with Manulife Financial Corporation (or its affiliates), the ultimate controlling parent of the Adviser.

⁴ Prior to 1997, Mr. Richardson was a Trustee of Manulife Series Fund, Inc., which merged into JHT on December 31, 1996.

⁵ Mr. Richardson retired as Trustee of John Hancock Trust effective December 14, 2006. On such date, Mr. Richardson became a non-voting Trustee Emeritus.

⁶ Member of Audit Committee.

⁷ Member of Compliance Committee.

⁸ Mr. Hoffman and Mr. Roberts were appointed by the Board of Trustees on September 26, 2008.

⁹ Ms. Fey was appointed by the Board as Trustee on September 26, 2008.

¹⁰ Ms. Fey is an “interested person” (as defined by the 1940 Act) due to a deferred compensation arrangement with her former employer, Frontier Capital Management Company, which is a subadviser of certain funds of John Hancock Funds II and John Hancock Trust.

496

John Hancock Funds II
Trustees and Officers — continued

Principal officers who are not Trustees

Name, age Position(s) held with Trust Principal occupation(s) and directorships during past 5 years	Officer of Fund since
Keith F. Hartstein1, Born: 1956		2005
President and Chief Executive Officer Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser, The Berkeley Group, John Hancock Funds, LLC (since 2005); Director, MFC Global Investment Management (U.S.), LLC (”MFC Global (U.S.)“) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock Investment Management Services, LLC (since 2006); President and Chief Executive Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust; Director, Chairman and President, NM Capital Management, Inc. (since 2005); Chairman, Investment Company Institute Sales Force Marketing Committee; Director, President and Chief Executive Officer, MFC Global (U.S.) (2005 – 2006); Executive Vice President, John Hancock Funds, LLC (until 2005).
John G. Vrysen1, Born: 1955		2007
Chief Operating Officer Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since June 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust (since June 2007); Director, Executive Vice President, and Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (until June 2007); Executive Vice President and Chief Financial Officer, John Hancock Investment Management Services, LLC (since 2005), Vice President and Chief Financial Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust (2005 – June 2007); Vice President and General Manager, Fixed Annuities, U.S. Wealth Management (until 2005); Vice President, Operations Manulife Wood Logan (2000–2004).
Charles A. Rizzo1, Born: 1957		2007
Chief Financial Officer Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (June 2007 – Present); Assistant Treasurer, Goldman Sachs Mutual Fund Complex (registered investment companies) (2005 – June 2007); Vice President, Goldman Sachs (2005 – June 2007); Managing Director and Treasurer of Scudder Funds, Deutsche Asset Management (2003 – 2005); Director, Tax and Financial Reporting, Deutsche Asset Management (2002 – 2003).
Francis V. Knox, Jr.1, Born: 1947		2005
Chief Compliance Officer Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004).
Gordon M. Shone1, Born: 1956		2005
Treasurer Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003 – 2005); Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President, John Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC (since 2006).
Thomas M. Kinzler1, Born: 1955		2006
Secretary and Chief Legal Officer Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006); Vice President and Associate General Counsel for Massachusetts Mutual Life Insurance Company (1999 – 2006); Secretary and Chief Legal Counsel for MML Series Investment Fund (2000 – 2006); Secretary and Chief Legal Counsel for MassMutual Institutional Funds (2000 – 2004); Secretary and Chief Legal Counsel for MassMutual Select Funds and MassMutual Premier Funds (2004 – 2006).

 

¹  Affiliated with the investment adviser.

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John Hancock Funds II
For More Information

The business address for all Trustees and Officers is 601 Congress Street, Boston, Massachusetts 02210-2805.

The Statement of Additional Information, a separate document with supplemental information not contained in the Prospectus, includes additional information on the Board of Trustees and can be obtained without charge by calling 1-800-344-1029 or on the Securities and Exchange Commission (“SEC”) Web site at www.sec.gov.

PROXY VOTING POLICY A description of the Trust’s proxy voting policies and procedures and information regarding how the Trust voted proxies relating to fund securities during the most recent twelve-month period ended August 31 is available without charge, upon request, by calling 1-800-344-1029 or on the Trust’s Web site at www.jhfunds.com or on the SEC Web site at www.sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available electronically on the SEC Web site (www.sec.gov); hard copies may be reviewed and copied at the SEC’s Public Reference Room, 450 Fifth Street, N.W., Washington, DC 20549. For more information on the Public Reference Room, call 1-800-SEC-0330.

498

ITEM 2. CODE OF ETHICS.  

(a) As of the end of the fiscal year August 31, 2008 the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer and Chief Financial Officer (respectively, the principal executive officer, the principal financial officer, the “Covered Officers”). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(b)Not applicable

(c)Not applicable

(d)Not applicable

(e)Not applicable

(f)(1) A copy of the Code of Ethics is attached hereto.

JOHN HANCOCK TRUST

JOHN HANCOCK FUNDS

JOHN HANCOCK FUNDS II

JOHN HANCOCK FUNDS III

SARBANES-OXLEY CODE OF ETHICS

FOR

PRINCIPAL EXECUTIVE & PRINCIPAL FINANCIAL OFFICERS

I.

Covered Officers/Purpose of the Code

This code of ethics (this “Code”) for John Hancock Trust, John Hancock Funds¹, John Hancock Funds II and John Hancock Funds III, each a registered management investment company under the Investment Company Act of 1940, as amended (“1940 Act”), which may issue shares in separate and distinct series (each investment company and series thereunder to be hereinafter referred to as a “Fund”), applies to each Fund’s Principal Executive Officer (“President”) and Principal Financial Officer (“Chief Financial Officer”) (the “Registrant’s Executive Officers” or “Executive Officers” as set forth in Exhibit A) for the purpose of promoting:

Ø

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

Ø

full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Fund;

Ø

compliance with applicable laws and governmental rules and regulations;

Ø

the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

Ø

accountability for adherence to the Code.

¹ John Hancock Funds includes the following trusts: John Hancock Bank and Thrift Opportunity Fund; John Hancock Bond Trust; John Hancock California Tax-Free Income Fund; John Hancock Capital Series; John Hancock Current Interest; John Hancock Equity Trust; John Hancock Income Securities Trust; John Hancock Investment Trust; John Hancock Investment Trust II; John Hancock Investment Trust III; John Hancock Investors Trust; John Hancock Municipal Securities Trust; John Hancock Patriot Premium Dividend Fund II; Trust; John Hancock Preferred Income Fund; John Hancock Preferred Income Fund II; John Hancock Preferred Income Fund III; John Hancock Series Trust; John Hancock Sovereign Bond Fund; John Hancock Strategic Series; John Hancock Tax-Exempt Series Fund; John Hancock World Fund; John Hancock Tax-Advantaged Dividend Income Fund and John Hancock Tax-Advantaged Global Shareholder Yield Fund.

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Each of the Registrant’s Executive Officers should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II.

Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

Overview

A “conflict of interest” occurs when an Executive Officer’s private interest interferes with the interests of, or his service to, the Fund.  For example, a conflict of interest would arise if a Registrant’s Executive Officers, or a member of his family, receives improper personal benefits as a result of his position with the Fund. Certain conflicts of interest arise out of the relationships between the Executive Officers and the Fund and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the “Investment Company Act”) and the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”). For example, Executive Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Fund because of their status as “affiliated persons” of the Fund. Each of the Registrant’s Executive Officers is an officer or employee of the investment adviser or a service provider (“Service Provider”) to the Fund. The Fund’s, the investment adviser’s and the Service Provider’s compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fund and the investment adviser and the Service Provider of which the Executive Officers are also officers or employees. As a result, this Code recognizes that the Registrant’s Executive Officers will, in the normal course of their duties (whether formally for the Fund, for the investment adviser or for the Service Provider), be involved in establishing policies and implementing decisions which will have different effects on the investment adviser, the Service Provider and the Fund. The participation of the Executive Officers in such activities is inherent in the contractual relationship between the Fund and the investment adviser and the Service Provider and is consistent with the performance by the Executive Officers of their duties as officers of the Fund. Thus, if such p articipation is performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, it will be deemed to have been handled ethically. In addition, it is recognized by the Fund’s Board of Trustees/Directors (the “Board”) that the Executive Officers may also be officers or employees of one or more other investment companies covered by other Codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but the Registrant’s Executive Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of an Executive Officer should not be placed improperly before the interest of the Fund.

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*                    *                    *

Each Covered Officer must:

Ø

not use his/her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Executive Officer would benefit personally to the detriment of the Fund;

Ø

not cause the Fund to take action, or fail to take action, for the individual personal benefit of the Executive Officer rather than for the benefit of the Fund; and

Ø

not use material non-public knowledge of portfolio transactions made or contemplated for the Fund to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

Additionally, conflicts of interest may arise in other situations, the propriety of which may be discussed, if material, with the Fund’s Chief Compliance Officer (“CCO”).  Examples of these include:

Ø

service as a director/trustee on the board of any public or private company;

Ø

the receipt of any non-nominal gifts;

Ø

the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety (or other formulation as the Fund already uses in another code of conduct);

Ø

any ownership interest in, or any consulting or employment relationship with, any of the Fund’s service providers, other than its investment adviser, any sub-adviser, principal underwriter, administrator or any affiliated person thereof; and

Ø

a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Executive Officer’s employment, such as compensation or equity ownership.

III.

Disclosure & Compliance

Ø

Each Executive Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Fund;

Ø

Each Executive Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund,

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including to the Fund’s directors and auditors, and to governmental regulators and self-regulatory organizations;

Ø

Each Executive Officer should, to the extent appropriate within his/her area of responsibility, consult with other officers and employees of the Fund and the Fund’s adviser or any sub-adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fund files with, or submits to, the SEC and in other public communications made by the Fund; and

Ø

It is the responsibility of each Executive Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV.

Reporting & Accountability

Each Executive Officer must:

Ø

upon adoption of the Code (or thereafter as applicable, upon becoming an Executive Officer), affirm in writing to the Fund’s CCO that he/she has received, read, and understands the Code;

Ø

annually thereafter affirm to the Fund’s CCO that he/she has complied with the requirements of the Code;

Ø

not retaliate against any employee or Executive Officer or their affiliated persons for reports of potential violations that are made in good faith;

Ø

notify the Fund’s CCO promptly if he/she knows of any violation of this Code (Note: failure to do so is itself a violation of this Code); and

Ø

report at least annually any change in his/her affiliations from the prior year.

The Fund’s CCO is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation.  However, any approvals or waivers sought by the Principal Executive Officer will be considered by the Fund’s Board or the Compliance Committee thereof (the “Committee”).

The Fund will follow these procedures in investigating and enforcing this Code:

Ø

the Fund’s CCO will take all appropriate action to investigate any potential violations reported to him/her;

Ø

if, after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take any further action;

Ø

any matter that the CCO believes is a violation will be reported to the Board or, if applicable, Compliance Committee;

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Ø

if the Board or, if applicable, Compliance Committee concurs that a violation has occurred, the Board, either upon its determination of a violation or upon recommendation of the Compliance Committee, if applicable, will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Service Provider or the investment adviser or its board; or a recommendation to dismiss the Registrant’s Executive Officer;

Ø

the Board, or if applicable the Compliance Committee, will be responsible for granting waivers, as appropriate; and

Ø

any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V.

Other Policies & Procedures

This Code shall be the sole code of ethics adopted by the Fund for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Fund, the Fund’s adviser, any sub-adviser, principal underwriter or other service providers govern or purport to govern the behavior or activities of the Registrant’s Executive Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Fund’s and its investment adviser’s codes of ethics under Rule 204A-1 under the Investment Advisers Act and Rule 17j-1 under the Investment Company Act, respectively, are separate requirements applying to the Registrant’s Executive Officers and others, and are not part of this Code.

VI.

Amendments

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Fund’s Board, including a majority of independent directors.

VII.

Confidentiality

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fund’s Board and its counsel, the investment adviser and the relevant Service Providers.

VIII.

Internal Use

The Code is intended solely for the internal use by the Fund and does not constitute an admission, by or on behalf of the Fund, as to any fact, circumstance, or legal conclusion.

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Exhibit A

Persons Covered by this Code of Ethics

(As of June 2007)

John Hancock Trust

Ø

Principal Executive Officer and President – Keith Hartstein

Ø

Principal Financial Officer and Chief Financial Officer – Charles Rizzo

John Hancock Funds

Ø

Principal Executive Officer and President – Keith Hartstein

Ø

Principal Financial Officer and Chief Financial Officer – Charles Rizzo

John Hancock Funds II

Ø

Principal Executive Officer and President – Keith Hartstein

Ø

Principal Financial Officer and Chief Financial Officer – Charles Rizzo

John Hancock Funds III

Ø

Principal Executive Officer and President – Keith Hartstein

Ø

Principal Financial Officer and Chief Financial Officer – Charles Rizzo

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(f)(2) Not applicable.

(f)(3)  The Registrant will provide a copy of the Code of Ethics to any person without charge, upon request by calling the following toll free number (800) 344-1029.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.  

The Board of Trustees of the Registrant has determined that it has one “audit committee financial expert” as that term is defined in Item 3(b) of Form N-CSR: Peter S. Burgess, who is “independent” as that term is defined in Item 3(a) (2) of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a)

AUDIT FEES:

2008:

$2,025,196

2007

$1,594,000

These fees represent aggregate fees billed for the last two fiscal years (the “Reporting Periods”) for professional services rendered by the principal accountant for the audits of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filing or engagements for such Reporting Periods.  

(b)

AUDIT RELATED FEES:

2008:

$91,561

2007

$50,000

These fees represent the aggregate fees billed for the Reporting Periods for assurance and related services by the principal accountant that are reasonably relate to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item. Such fees relate to professional services rendered by PwC for separate audit reports in connection with security counts pursuant to Rule 17f-2 under the Investment Company Act of 1940 and fund merger audit services.

(c)

TAX FEES:

2008:

$555,773

2007

$428,000

These fees represent aggregate fees billed for the Reporting Periods for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning.  The tax services provided by the principal accountant relate to the review of the Registrant’s federal and state income tax returns, excise tax calculations and returns and a review of the Registrant’s calculations of

capital gain and income distributions.  

(d)

ALL OTHER FEES: None.

(e)

(1) Audit Committee Pre-Approval Policies and Procedures:

The Trust’s Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the “Auditor”) relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.

The Trust’s Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per instance/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per instance/per fund are subject to specific pre-approval by the Audit Committee.

All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee.  At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.

(2) Amount approved by the Audit Committee pursuant paragraph (c) (7) (i) (C) of Rule 2-01 of Regulation S-X: None.

(f)

Not applicable.

(g)

The aggregate non-audit fees billed by PwC for services rendered to the registrant and rendered to the registrant's control affiliates for each of the last two fiscal years of the registrant were $XXXX for the fiscal year ended August 31, 2008, and $2,107,235 for the fiscal year ended August 31, 2007.

(h)

The audit committee of the registrant has considered the non-audit services provided by the registrant’s principal accountant(s) to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant(s)' independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.  

Included as part of the reports to shareholders under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.  

Not applicable.

ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.  PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANIES AND AFFILIATED PURCHASERS.  

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS.

 Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a)

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.  The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission.  Such disclosure controls and procedures include controls and procedures designed to ensure that such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.  

Within 90 days prior to the filing date of this Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures relating to information required to be disclosed on Form N-CSR.  Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are operating effectively to ensure that:

(i) information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission, and

(ii) information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) CHANGE IN REGISTRANT’S INTERNAL CONTROL: Not applicable.

ITEM 12. EXHIBITS.

(a)(1)  Included under Item 2.

(a)(2)(i) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER.

(a)(2)(ii) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER.

(b) CERTIFICATION PURSUANT TO Rule 30a-2(b) OF THE INVESTMENT COMPANY ACT OF 1940

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

JOHN HANCOCK FUNDS II

/S/ Keith F. Hartstein

Keith F. Hartstein

President and

Chief Executive Officer

Date: October 30, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/S/ Keith F. Hartstein

Keith F. Hartstein

President and

Chief Executive Officer

Date: October 30, 2008

/S/ Charles A. Rizzo

Charles A. Rizzo

Chief Financial Officer

Date: October 30, 2008