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)

MICHAEL J. LEARY, 601 CONGRESS STREET, BOSTON, MA 02210-2805

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(Name and address of agent for service)

Registrant's telephone number, including area code: (617) 663-4490

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Date of fiscal year end: 8/31

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Date of reporting period: 8/31/09

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ITEM 1. REPORTS TO STOCKHOLDERS.

The Registrant prepared four annual reports to shareholders for the year ended August 31, 2009 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 8 Lifecycle Portfolios, the fourth report applies to the Lifecycle Retirement Portfolio and the fourth report applies to 59 of the Registrant’s Funds.

Management’s discussion of

Fund performance

The bank-loan market advanced modestly for the 12 months ended August 31, 2009, despite some extreme volatility. Bank loan prices plunged in late 2008 as a severe recession, a lack of liquidity and turmoil in the banking industry weighed on the market. In the first eight months of 2009, however, the bank-loan market enjoyed a remarkable turnaround thanks to improving liquidity, better conditions for banks and rising demand for risk-related assets. While the bank-loan market has been on the mend, the default rate on bank loans worsened, increasing from 3.3% at the beginning of the period to 8.2% as of June 30, 2009. Since then, the default rate has held relatively steady and recovery rates for defaulted loans have improved significantly.

Fund performance

For the year ended August 31, 2009, John Hancock Floating Rate Income Fund’s Class A shares posted a total return of –0.07% at net asset value. The Fund’s return trailed the 2.33% return of the S&P/LSTA Performing Loan Index, but outpaced the –4.35% average return of the Morningstar, Inc. bank loan category.

The Fund’s relatively flat return for the reporting period was notably better than its peer group average, but it underperformed its benchmark index. The main reason behind this underperformance was its defensive positioning, which focused on higher-quality securities and limited exposure to lower-rated issues. This defensive approach contributed favorably to performance during the first half of the period, when the bank-loan market was in freefall, but it weighed on relative results in the last six months as lower-quality securities led the bank-loan market’s resurgence. More recently, we have been seeking out higher-yielding securities that have not participated in the market’s 2009 rally. Given our focus on careful credit research and higher-quality securities, we have been very selective, making investment decisions on an issuer-by-issuer basis.

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.

The major factor in this Fund’s performance is credit risk. Lower-rated, fixed-income securities have a greater risk of issuers not being able to meet debt obligations, and their value will fluctuate more in response to market conditions.

The Fund is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversi-fied fund. 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 period ended August 31, 2009
			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		SEC 30- day yield (%) as of 8-31-09 (subsi- dized)		SEC 30- day yield (%) as of 8-31-09 (unsubsi- dized)2
A		1-2-08		–3.07		—		—		–1.13		–3.07		—		—		–1.87		4.41		4.41
B		1-2-08		–5.46		—		—		–2.24		–5.46		—		—		–3.90		3.83		2.49
C		1-2-08		–1.62		—		—		0.07		–1.62		—		—		0.11		3.77		3.68
I1		1-2-08		0.25		—		—		1.06		0.25		—		—		1.78		4.90		4.90
11		1-2-08		0.40		—		—		–1.13		0.40		—		—		1.89		5.06		5.06
NAV1		1-2-08		0.31		—		—		1.14		0.31		—		—		1.90		5.11		5.11

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, 2009. The net expenses are as follows: Class A — 1.20%, Class B — 1.95%, Class C — 1.95%, Class I — 0.85%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A3— 1.52%, Class B — 4.76%, Class C — 2.32%, Class I — 4.48%. For the other classes, the net expenses equal the gross expenses and are as follows: Class 1 — 0.78%, Class NAV — 0.75%. The Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.

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

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 Performing Loan Index.

					With maximum
Class	Period beginning		Without sales charge		sales charge		Index
B	1-2-08	$	9,995	$	9,630	$	10,028
C2	1-2-08		10,011		10,011		10,028
I2,3	1-2-08		10,178		10,178		10,028
12,3	1-2-08		10,189		10,189		10,028
NAV2,3	1-2-08		10,190		10,190		10,028

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, 2009. Performance of the classes will vary based on the difference in sales charges paid by shareholders investing in the different classes and the fee structure of those classes.

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

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

1	NAV represents net asset value and POP represents public offering price.
2	No contingent deferred sales charges applicable.
3	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, 2009, with the same investment held until August 31, 2009.

		Account value		Ending value		Expenses paid during
		on 3-1-09		on 8-31-09		period ended 8-31-091
Class A	$	1,000.00	$	1,231.30	$	6.75
Class B		1,000.00		1,226.50		10.94
Class C		1,000.00		1,227.60		10.95
Class I		1,000.00		1,232.70		4.78
Class 1		1,000.00		1,235.00		4.28
Class NAV		1,000.00		1,233.80		4.00

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, 2009, 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
[ My account value / $1,000.00 = 8.6 ]	x	$[ “expenses paid” ]	=	My actual
$8,600.00		from table		expenses

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, 2009, with the same investment held until August 31, 2009. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

		Account value		Ending value		Expenses paid during
		on 3-1-09		on 8-31-09		period ended 8-31-091
Class A	$	1,000.00	$	1,019.20	$	6.11
Class B		1,000.00		1,015.40		9.91
Class C		1,000.00		1,015.40		9.91
Class I		1,000.00		1,020.90		4.33
Class 1		1,000.00		1,021.40		3.87
Class NAV		1,000.00		1,021.60		3.62

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 1.20%, 1.95%, 1.95%, 0.85%, 0.76% and 0.71% 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 184/365 (to reflect the one-half year period).

10     Floating Rate Income Fund | Annual report

Portfolio summary

Top 10 holdings1
Community Health Systems, Inc., 2.612%, due 7-2-14	2.5%
HCA, Inc., 2.848%, due 11-1-13	2.3%
Federal Home Loan Bank, 4.50%,
due 10-9-09	2.2%
Charter Communications, Inc.,
6.250%, due 3-15-14	2.1%
Ford Motor Company, 3.495%,
due 11-29-13	1.9%
Energy Future Holdings Corp.,
3.761%, due 10-10-14	1.9%
Harrah’s Operating Company, Inc.,
3.504%, due 2-28-15	1.9%
First Data Corp., 3.017%,
due 10-15-14	1.8%
Panamsat Corp., 2.776%,
due 6-30-13	1.7%
Georgia Pacific LLC, 2.605%,
due 12-23-13	1.5%
Sector composition2,3
Consumer cyclical	32%
Communications	17%
Consumer non-cyclical	13%
Basic materials	11%
Energy	10%
Industrial	4%
Financial	4%
U.S. government agency	3%
Utilities	2%
Technology	1%
Short-term investments & other	3%

1	As a percentage of net assets on August 31, 2009. Excludes cash and cash equivalents.
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.
3	As a percentage of net assets on August 31, 2009.

Annual report | Floating Rate Income Fund     11

Fund’s investments

FINANCIAL STATEMENTS

Securities owned by the Fund on 8-31-09

		Principal
Issuer		amount		Value
Term loans 82.14%			$	934,732,185
(Cost $903,976,147)
Aerospace 1.76%				19,966,697
Dubai Aerospace Enterprise, Term Loan Strip
4.240% due 07/31/2014 (b)	$	15,575,381		12,927,566
Transdigm, Term Loan B
2.401% due 07/01/2012 (b)		7,285,000		7,039,131
Air Travel 0.58%				6,581,952
Hawker Beechcraft Corp., Inc., Tranche B
2.372% due 03/26/2014 (b)		8,829,893		6,581,952
Airlines 1.06%				12,090,858
Delta Air Lines, Inc., Tranche A
2.276% due 04/30/2012 (b)		7,335,657		6,550,132
United Air Lines, Inc., Tranche B
2.313% due 01/12/2014 (b)		8,780,864		5,540,726
Aluminum 0.48%				5,507,156
Norada Aluminum, Inc., Term Loan B
2.268% due 05/18/2014 (b)		7,518,302		5,507,156
Amusement & Theme Parks 0.53%				6,052,480
Cedar Fair LP, Tranche B
2.261% due 06/13/2012 (b)		6,317,004		6,052,480
Apparel & Textiles 0.93%				10,609,582
Hanes Brands, Inc., Tranche B
5.240% due 10/15/2013 (b)		3,743,918		3,745,255
Iconix, Inc., Tranche B
2.52% due 05/01/2014 (b)		2,488,116		2,363,710
Novelis, Inc., Term Loan
2.422% due 07/06/2014 (b)		4,962,091		4,500,617
Auto Parts 1.00%				11,351,006
Allison Transmission, Inc., Tranche B
3.030% due 08/07/2014 (b)		13,295,468		11,351,006
Auto Services 1.36%				15,444,856
Hertz Corp.
2.029% due 01/21/2012 (b)		11,894,578		11,291,356
Visteon, Tranche B
5.25% due 06/20/2013 (b)		6,500,000		4,153,500

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Automobiles 2.66%			$	30,310,921
Adesa, Inc., Tranche B
2.520% due 09/22/2013 (b)	$	8,847,608		8,302,003
Ford Motor Company, Tranche B
3.495% due 11/29/2013 (b)		25,399,791		22,008,918
Broadcasting 0.67%				7,659,615
Citadel Broadcasting Corp., Tranche A
2.090% due 06/12/2013 (b)		500,000		277,813
Citadel Broadcasting Corp., Tranche B
2.341% due 06/12/2014 (b)		11,500,000		6,509,000
CMP Susquehanna Corp.
2.313% due 06/07/2013 (b)		1,407,745		872,802
Building Materials & Construction 1.57%				17,888,344
Sunguard Homes
due 02/28/2016 (h)		16,170,582		15,611,355
Sunguard Homes, Tranche B
2.206% due 08/15/2012 (b)		2,431,382		2,276,989
Business Services 0.94%				10,703,125
Rental Service Corp., 2nd Lien
4.139% due 12/01/2013 (b)		12,500,000		10,703,125
Cable & Television 6.24%				71,050,463
Cablevision Systems Corp., Tranche B
2.023% due 03/30/2013 (b)		9,048,849		8,746,681
Charter Communications, Inc., Tranche B
6.250% due 03/15/2014 (b)		25,230,005		23,416,598
Charter Communications, Inc., Tranche B2
9.250% due 03/06/2014 (b)		3,514,256		3,512,499
Direct TV Holdings, Inc., Tranche C
5.25% due 04/13/2013 (b)		4,932,569		4,937,965
Insight Midwest Holdings LLC, Tranche B
2.28% due 04/10/2014 (b)		2,250,000		2,147,144
Lodgenet Entertainment Corp., Tranche B
2.592% due 04/04/2014 (b)		8,779,232		7,506,243
Univision Communications, Inc., Tranche B
2.511% due 09/15/2014 (b)		19,875,000		15,559,283
UPC Broadband Holding NV
2.031% due 03/30/2014 (b)		3,565,583		3,360,562
3.781% due 10/17/2013 (b)		1,934,417		1,863,488
Cellular Communications 0.53%				6,055,931
Metropcs Wireless, Inc. Tranche B
2.683% due 02/20/2014 (b)		6,441,411		6,055,931
Chemicals 3.28%				37,352,920
Ashland, Inc.
7.650% due 11/20/2013 (b)		2,665,704		2,711,242
Brenntag, Term Loan B
2.273% due 12/23/2013 (b)		2,444,618		2,322,387
Georgia Gulf Corp., Term Loan B
due 09/01/2013 (h)		3,500,000		3,360,000
Lyondell Chemical Company
3.768% due 12/20/2014 (b)		18,158,422		8,731,168
10.44% due 12/15/2009 (b)		6,751,397		6,991,915

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Chemicals (continued)
Lyondell Chemical Company
5.807% due 12/15/2009 (b)	$	7,747,700	$	7,153,708
Nalco Company
6.50% due 05/06/2016 (b)		6,000,000		6,082,500
Commercial Services 3.95%				44,948,767
Affinion Group, Tranche B
2.761% due 10/17/2012 (b)		5,941,374		5,654,643
Asurion Corp. Tranche B
3.278% due 07/02/2014 (b)		6,500,000		6,198,166
Sensata Technologies, Term Loan B
2.246% due 04/27/2013 (b)		10,033,203		8,193,786
Thomson Learning, Tranche B
8.50% due 07/05/2014 (b)		15,423,315		13,225,492
Ticketmaster, Term Loan
3.60% due 08/01/2014 (b)		3,000,000		2,835,000
US Investigations Services, Inc., Tranche B
3.359% due 02/21/2015 (b)		8,048,517		7,440,854
West Corp., Tranche B
2.644% due 10/01/2013 (b)		1,477,330		1,400,826
Containers & Glass 1.94%				22,060,737
Graham Packaging Company, Inc., Tranche C
6.750% due 04/05/2014 (b)		8,472,684		8,451,502
Graphic Packaging, Inc., Tranche B
2.526% due 05/03/2014 (b)		7,119,776		6,854,208
Graphic Packaging, Inc., Tranche C
3.265% due 05/16/2014 (b)		6,928,233		6,755,027
Cosmetics & Toiletries 0.57%				6,492,460
Sally Holdings LLC, Tranche B
2.555% due 11/15/2013 (b)		6,841,882		6,492,460
Data Processing & Management 1.82%				20,653,427
First Data Corp., Tranche B2
3.017% due 10/15/2014 (b)		24,841,566		20,653,427
Educational Services 0.30%				3,395,532
Education Management, Tranche C
2.375% due 06/12/2013 (b)		3,552,432		3,395,532
Electrical Utilities 4.93%				56,036,605
Calpine Corp.,Tranche B
3.475% due 03/29/2014 (b)		16,583,930		15,218,342
Energy Future Holdings Corp., Tranche B3
3.761% due 10/10/2014 (b)		28,991,541		21,940,393
NRG Energy, Inc.
6.15% due 02/01/2013 (b)		9,495,799		8,955,184
NRG Energy, Inc., Tranche B
2.252% due 02/01/2013 (b)		9,509,954		8,968,534
2.348% due 02/01/2013 (b)		1,011,753		954,152
Energy 2.12%				24,112,596
Brand Energy Services, Tranche B
2.606% due 02/07/2014 (b)		8,145,621		7,331,059
Enterprise GP Holdngs LP, Tranche B
2.674% due 11/10/2014 (b)		2,000,000		1,952,500

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Energy (continued)
Express Energy Service, Term Loan
9.50% due 07/02/2013 (b)	$	3,769,869	$	1,413,701
TXU Energy, Tranche B2
3.776% due 10/10/2014 (b)		17,651,758		13,415,336
Financial Services 0.60%				6,848,071
Chrysler Financial, Tranche B
4.280% due 08/03/2012 (b)		4,486,053		4,239,321
CIT Group, Inc.
due 01/18/2012 (h)		2,500,000		2,608,750
Food & Beverages 2.48%				28,265,686
Aramark Corp.
2.473% due 01/31/2014 (b)		13,343,061		12,486,103
Bolthouse Farms, Inc., Tranche B
2.563% due 12/16/2012 (b)		4,675,309		4,511,673
Dole Food Company, Inc., Letter of Credit
8.00% due 04/12/2013 (b)		5,367,044		5,401,425
Wrigley WM Jr. Company, Term Loan B
6.50% due 09/30/2014 (b)		5,801,250		5,866,485
Healthcare Products 4.31%				49,053,361
Bausch & Lomb, Inc., Tranche B
3.848% due 04/11/2015 (b)		8,716,365		8,246,500
Biomet, Inc., Tranche B
3.575% due 03/25/2015 (b)		17,408,018		16,702,628
Fenwal, Inc.
2.622% due 03/01/2014 (b)		11,975,870		10,359,127
Hanger Orthopedic Group, Inc., Tranche B
2.27% due 07/15/2014 (b)		4,941,771		4,608,201
Pharmaceutical Health Technologies, Tranche B
2.511% due 04/15/2014 (b)		4,505,063		3,917,152
Royalty Pharma, Tranche B
2.848% due 05/15/2014 (b)		5,333,081		5,219,753
Healthcare Services 1.22%				13,843,857
DaVita, Inc.
1.864% due 03/15/2014 (b)		6,000,000		5,757,498
Manor Care, Tranche B
2.77% due 11/15/2014 (b)		8,910,588		8,086,359
Hotels & Restaurants 2.00%				22,751,006
Harrahs Operating Company, Inc., Tranche B2
3.504% due 02/28/2015 (b)		26,434,787		21,294,701
QUIZNO’S Corp.
2.875% due 05/05/2012 (b)		1,954,772		1,456,305
Leisure Time 4.87%				55,414,119
AMC Entertainment, Inc., Term Loan B
1.764% due 01/26/2013 (b)		2,050,659		1,947,394
Carmike Cinemas, Inc., Term Loan
4.100% due 05/19/2012 (b)		3,617,177		3,388,843
4.490% due 05/19/2012 (b)		3,210,223		3,007,577

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Leisure Time (continued)
CCM Merger, Inc., Tranche B
8.500% due 07/21/2012 (b)	$	6,719,816	$	6,271,826
Cinemark, Inc., Tranche C
2.086% due 03/31/2011 (b)		1,989,770		1,913,064
Golden Nugget, Inc., Tranche B
2.270% due 06/14/2014 (b)		3,744,886		2,552,765
Las Vegas Sands LLC, Tranche B
2.09% due 05/08/2014 (b)		20,414,025		15,900,260
Metro-Goldwyn-Mayer, Inc., Term Loan B
3.511% due 04/08/2011 (b)		9,692,386		5,391,390
National Cinemedia LLC, Tranche B
2.38% due 02/01/2015 (b)		1,000,000		936,500
Oceania Cruises, Inc., Tranche B
2.85% due 05/01/2014 (b)		1,483,287		934,471
Penn National Gaming, Inc., Term Loan B
2.026% due 10/03/2012 (b)		4,224,255		4,105,448
Regal Cinemas, Tranche B
4.348% due 10/19/2010 (b)		4,373,422		4,335,155
Tropicana Entertainment, Tranche B
6.50% due 12/15/2011 (b)		4,000,000		1,080,000
Venetian Macau, Tranche B
2.85% due 04/01/2013 (b)		3,646,473		3,335,221
Venetian Macau, Tranche Delayed Draw
2.85% due 04/01/2013 (b)		343,527		314,205
Medical-Hospitals 7.63%				86,857,457
Community Health Systems, Inc., Tranche B
2.612% due 07/02/2014 (b)		30,566,304		28,474,438
HCA, Inc., Tranche A
2.098% due 11/16/2012 (b)		4,985,204		4,654,241
HCA, Inc., Tranche B
2.848% due 11/01/2013 (b)		27,573,210		25,949,451
Health Management Associates, Inc., Tranche B
2.348% due 01/16/2014 (b)		8,518,259		7,983,210
HVHC, Inc., Tranche B
2.850% due 08/15/2013 (b)		2,825,943		2,684,646
Iasis Healthcare Corp., Tranche B
2.261% due 05/01/2014 (b)		11,954,796		11,267,395
Vanguard Health Holdings, Tranche B
2.511% due 05/18/2011 (b)		6,004,189		5,844,076
Oil & Gas Drilling 2.39%				27,147,211
Ashmore Energy International, Tranche B
3.598% due 05/30/2014 (b)		11,524,638		10,372,174
Hercules Offshore LLC, Tranche B
7.581% due 07/11/2013 (b)		6,904,659		6,352,286
Venoco, Inc.
4.313% due 05/01/2014 (b)		13,362,501		10,422,751
Paper 2.65%				30,195,265
Georgia Pacific LLC, Tranche B1
2.605% due 12/23/2013 (b)		18,207,394		17,589,635
Georgia Pacific LLC, Tranche B2
2.356% due 12/20/2012 (b)		2,264,151		2,187,331
NewPage Corp., Tranche B
8.90% due 11/05/2014 (b)		11,250,000		10,418,299

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount			Value
Pipelines 0.63%				$	7,200,021
Dynegy Holdings, Inc.
4.02% due 04/02/2013 (b)	$	7,492,217			7,200,021
Plastics 0.96%					10,923,521
Berry Plastics Holding Company
2.275% due 04/03/2015 (b)		12,912,909			10,923,521
Publishing 2.73%					31,067,516
Dex Media West LLC, Tranche B
7.00% due 10/13/2014 (b)		7,804,043			6,594,416
Idearc, Inc., Tranche B
6.25% due 11/01/2014 (b)		8,083,080			3,711,484
Newsday LLC
9.75% due 07/15/2013 (b)		9,500,000			9,666,250
Nielsen Finance, Tranche B
2.276% due 08/15/2013 (b)		8,518,029			7,853,622
Quebecor World, Inc., Tranche B
2.509% due 01/17/2013 (b)		2,382,959			2,234,024
Tribune Company
5.00% due 06/04/2010 (b)		2,462,857			1,007,720
Retail Trade 4.12%					46,836,490
Amscan Holdings, Inc., Tranche B
2.880% due 05/01/2013 (b)		8,604,568			7,518,241
Dollar General Corp., Tranche B
3.125% due 07/15/2014 (b)		5,000,000			4,863,195
General Nutrition Center, Tranche B
2.724% due 09/06/2013 (b)		8,569,145			7,872,902
Michaels Stores, Inc., Tranche B
2.563% due 10/31/2013 (b)		12,898,287			11,378,714
Neiman Marcus Group, Inc., Tranche B
2.493% due 03/13/2013 (b)		12,733,805			10,482,647
Petco Animal Supplies, Inc., Tranche B
2.709% due 11/15/2013 (b)		4,936,775			4,720,791
Semiconductors 0.63%					7,208,151
Freescale Semiconductor, Inc.
12.50% due 12/15/2014 (b)		4,000,000			3,766,668
Freescale Semiconductor, Inc., Tranche B
2.031% due 12/01/2013 (b)		4,893,107			3,441,483
Software 0.30%					3,399,623
CGG, Tranche B
4.269% due 01/30/2014 (b)		3,504,766			3,399,623
Telecommunications Equipment & Services		4.55	%		51,708,086
Level 3 Communications, Inc.
11.50% due 03/13/2014 (b)		4,000,000			4,123,332
Level 3 Communications, Inc., Tranche B
2.691% due 03/01/2014 (b)		10,000,000			8,576,790
Panamsat Corp., Tranche B
2.776% due 06/30/2013 (b)		21,070,631			19,889,179
Qwest Corp., Term Loan B
6.95% due 06/30/2010 (b)		8,500,000			8,521,250
Telesat Canada, Tranche D Delayed Draw
3.270% due 10/15/2014 (b)		9,158,671			8,756,276
Virgin Media Tranche B4
2.457% due 01/15/2014 (b)		1,958,787			1,841,259

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Transportation 0.85%			$	9,686,714
Swift Transport, Term Loan B
3.563% due 05/15/2014 (b)	$	12,242,293		9,686,714
U.S. government agency obligations 2.88%			$	32,726,608
(Cost $33,635,308)
Federal Home Loan Bank 2.88%				32,726,608
4.50% due 10/09/2009 (a)	$	25,100,000		25,210,566
5.00% due 09/18/2009 (a)		7,500,000		7,516,042
Corporate bonds 12.07%			$	137,341,517
(Cost $130,419,913)
Air Travel 0.21%				2,382,206
Continental Airlines, Inc., Series 01-1
6.503% due 12/15/2012	$	1,030,000		978,500
Continental Airlines, Inc., Series 974A
6.90% due 01/02/2018		1,175,751		1,022,903
Continental Airlines, Inc., Series 991A
6.545% due 02/02/2019		400,845		380,803
Building Materials & Construction 0.20%				2,325,000
Nortek, Inc.
10.00% due 12/01/2013 (f)		2,500,000		2,325,000
Cable & Television 0.76%				8,663,253
DirecTV Holdings LLC
7.625% due 05/15/2016		2,500,000		2,631,250
Time Warner Cable, Inc.
8.75% due 02/14/2019		4,900,000		6,032,003
Crude Petroleum & Natural Gas 1.51%				17,182,015
Chesapeake Energy Corp.
7.625% due 07/15/2013		9,895,000		9,697,100
Hess Corp.
8.125% due 02/15/2019		2,100,000		2,484,915
SandRidge Energy, Inc.
9.875% due 05/15/2016 (f)		5,000,000		5,000,000
Electrical Utilities 0.61%				6,965,000
Calpine Construction Finance Company LP
8.00% due 06/01/2016 (f)		7,000,000		6,965,000
Financial Services 3.07%				34,982,064
American Express Company
7.25% due 05/20/2014		10,000,000		11,004,950
Citigroup, Inc.
6.375% due 08/12/2014		7,500,000		7,584,323
8.50% due 05/22/2019		4,750,000		5,192,121
Ford Motor Credit Company LLC
7.50% due 08/01/2012		5,000,000		4,602,100
12.00% due 05/15/2015		5,385,000		5,606,070
GMAC LLC
7.75% due 01/19/2010 (f)		1,000,000		992,500
Food & Beverages 0.02%				216,600
Dole Food Company, Inc.
13.875% due 03/15/2014 (f)		190,000		216,600

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Healthcare Products 0.14%			$	1,620,000
Universal Hospital Services, Inc.
4.635% due 06/01/2015 (b)	$	2,000,000		1,620,000
Leisure Time 0.75%				8,484,555
Harrahs Operating Escrow LLC
11.25% due 06/01/2017 (f)		1,500,000		1,526,250
MGM Mirage, Inc.
10.375% due 05/15/2014 (f)		2,250,000		2,368,125
Station Casinos, Inc.
7.75% due 08/15/2016 ^		1,596,000		496,755
WMG Acquisition Corp.
9.50% due 06/15/2016 (f)		3,955,000		4,093,425
Mining 0.90%				10,267,116
Rio Tinto Finance USA, Ltd.
8.95% due 05/01/2014		4,000,000		4,661,916
Teck Resources, Ltd.
9.75% due 05/15/2014		5,190,000		5,605,200
Paper 0.22%				2,525,000
Georgia Pacific LLC
8.25% due 05/01/2016 (f)		2,500,000		2,525,000
Petroleum Services 0.31%				3,519,000
Basic Energy Services, Inc.
11.625% due 08/01/2014 (f)		3,450,000		3,519,000
Railroads & Equipment 0.28%				3,206,175
Grupo Transportacion Ferroviaria Mexicana, SA de CV
9.375% due 05/01/2012		3,255,000		3,206,175
Real Estate 0.03%				332,575
Forest City Enterprises, Inc.
7.625% due 06/01/2015		530,000		332,575
Retail Trade 0.06%				625,408
Neiman Marcus Group, Inc., PIK
9.00% due 10/15/2015 (f)		839,474		625,408
Semiconductors 0.03%				330,225
Freescale Semiconductor, Inc.
10.125% due 12/15/2016		595,000		330,225
Telecommunications Equipment & Services 1.13%				12,810,000
CC Holdings GS V LLC
7.75% due 05/01/2017 (f)		7,000,000		7,070,000
iPCS, Inc.
2.6081% due 05/01/2013 (b)(f)		7,000,000		5,740,000
Telephone 0.44%				5,006,250
Sprint Capital Corp.
7.625% due 01/30/2011		5,000,000		5,006,250
Transportation 1.40%				15,899,075
RailAmerica, Inc.
9.25% due 07/01/2017 (f)		15,380,000		15,899,075

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

FINANCIAL STATEMENTS

Issuer	Shares		Value
Common stocks 0.01%		$	94,982
(Cost $50,208)
Chemicals 0.01%
Georgia Gulf Corp.*	3,165	$	94,982
Preferred stocks 0.17%		$	1,968,862
(Cost $1,148,063)
Chemicals 0.17%
Georgia Gulf Corp.	70,950		1,968,862

		Principal
Issuer		amount		Value
Short-term investments 7.14%			$	81,254,675
(Cost $81,257,918)
Federal National Mortgage Association Discount Notes
0.150% due 01/11/2010	$	50,000,000		49,954,860
John Hancock Collateral Investment Trust,
0.3900% (c)(g)		3,126,449		31,299,815
Repurchase agreements 4.95%			$	56,300,000
(Cost $56,300,000)
Bank of America Tri-Party Repurchase Agreement dated 08/31/2009 at 0.14% to be repurchased at $56,300,219 on 09/01/2009, collateralized by $56,510,000 U.S. Treasury Notes, 3.50% due 2/15/2010 (valued at $57,426,222, including interest)	$	56,300,000		56,300,000
Total investments (Cost $1,206,787,557)† 109.36%			$	1,244,418,829
Other assets and liabilities, net (9.36%)				(106,504,011	)
Total net assets 100.00%			$	1,137,914,818

	Percentages are stated as a percent of net assets.
ˆ	Issuer is in bankruptcy and/or is in default of interest payments.
*	Non-Income Producing
PIK Paid In Kind
(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.
(f)	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.
(g)	John Hancock Collateral Investment Trust is managed by MFC Global Investment Management (U.S.), LLC, and represents investment of securities lending collateral. The rate shown is the annualized seven-day yield at August 31, 2009.
(h)	All or a portion of this position represents unsettled loan commitment. The coupon rate will be determined at time of settlement.
†	At August 31, 2009, the aggregate cost of investment securities for federal income tax purposes was$1,211,361,756. Net unrealized appreciation aggregated $33,057,073, of which $56,230,753 related to appreciated investment securities and $23,173,680 related to depreciated investment securities.

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

Financial statements

FINANCIAL STATEMENTS

Statement of assets and liabilities 8-31-09

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 $1,119,189,305) including $30,682,664 of securities loaned (Note 2)	$	1,156,819,014
Investments in affiliated issuers, at value (Cost $31,298,252) (Note 2)		31,299,815
Repurchase agreements, at value (Cost $56,300,000) (Note 2)		56,300,000
Total investments, at value (Cost $1,206,787,557) (Note 2)		1,244,418,829
Cash		1,163,570
Receivable for investments sold		13,928,767
Receivable for fund shares sold		3,602,839
Dividends and interest receivable		6,746,586
Receivable for security lending income		2,013
Total assets		1,269,862,604
Liabilities
Payable for investments purchased		100,149,249
Payable for fund shares repurchased		228,596
Payable upon return of securities loaned (Note 2)		31,297,600
Distributions payable		142,068
Payable to affiliates
Accounting and legal services fees		15,888
Transfer agent fees		15,174
Trustees’ fees		1,541
Management fees		5,925
Other liabilities and accrued expenses		91,745
Total liabilities		131,947,786
Net assets
Capital paid-in	$	1,116,830,019
Accumulated undistributed net investment income		1,197,023
Accumulated net realized loss on investments		(17,743,496	)
Net unrealized appreciation on investments		37,631,272
Net assets	$	1,137,914,818

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

FINANCIAL STATEMENTS

Statement of assets and liabilities (continued)

Net asset value per share
Based on net asset values and shares outstanding — the Fund has an unlimited number of shares authorized with no par value
Class A ($109,859,802 ÷ 12,028,748 shares)	$	9.13
Class B ($2,581,900 ÷ 282,864 shares)1	$	9.13
Class C ($23,242,455 ÷ 2,536,543 shares)1	$	9.16
Class I ($40,295,760 ÷ 4,417,217 shares)	$	9.12
Class 1 ($101,870 ÷ 11,173 shares)	$	9.12
Class NAV ($961,833,031 ÷ 105,407,685 shares)	$	9.12
Maximum offering price per share
Class A (net asset value per share ÷ 97%)2	$	9.41

1	Redemption price 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.

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

FINANCIAL STATEMENTS

Statement of operations For the year ended 8-31-09

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

Investment income
Interest	$	53,396,692
Securities lending		36,414
Less foreign taxes withheld		(13,326	)
Total investment income		53,419,780
Expenses
Investment management fees (Note 5)		4,770,212
Distribution and service fees (Note 5)		203,573
Transfer agent fees (Note 5)		81,932
Accounting and legal services fees (Note 5)		127,887
Trustees’ fees (Note 6)		10,423
State registration fees (Note 5)		74,771
Printing and postage fees (Note 5)		9,834
Professional fees		64,490
Custodian fees		76,759
Registration and filing fees		54,296
Miscellaneous		4,466
Total expenses		5,478,643
Less expense reductions (Note 5)		(52,953	)
Net expenses		5,425,690
Net investment income		47,994,090
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(16,329,778	)
Investments in affiliated underlying funds		652
		(16,329,126	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		46,853,835
Investments in affiliated underlying funds		1,563
		46,855,398
Net realized and unrealized gain		30,526,272
Increase in net assets from operations	$	78,520,362

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

FINANCIAL STATEMENTS

Statements of changes in net assets

These Statements of Changes in Net Assets show how the value of the Portfolio’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 Portfolio share transactions.

		Year			Period
		ended			ended
		8-31-09			8-31-081
Increase in net assets
From operations
Net investment income	$	47,994,090		$	14,891,575
Net realized loss		(16,329,126	)		(239,677	)
Change in net unrealized appreciation (depreciation)		46,855,398			(9,224,126	)
Increase in net assets resulting from operations		78,520,362			5,427,772
Distributions to shareholders
From net investment income
Class A		(2,272,510	)		(110,475	)
Class B		(50,115	)		(7,068	)
Class C		(429,181	)		(66,351	)
Class I		(694,304	)		(5,779	)
Class 1		(6,417	)		(3,720	)
Class NAV		(44,954,646	)		(14,251,483	)
From net realized gain
Class A		(228	)		—
Class B		(7	)		—
Class C		(39	)		—
Class I		(28	)		—
Class 1		(2	)		—
Class NAV		(12,024	)		—
Total distributions		(48,419,501	)		(14,444,876	)
From Fund share transactions (Note 7)		583,851,148			532,979,913
Total increase		613,952,009			523,962,809
Net assets
Beginning of year		523,962,809			—
End of year	$	1,137,914,818		$	523,962,809
Accumulated undistributed net investment income	$	1,197,023		$	430,271

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

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

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		8-31-09			8-31-08	1
Per share operating performance
Net asset value, beginning of year	$	9.79		$	10.00
Net investment income2		0.56			0.37
Net realized and unrealized loss on investments		(0.66	)		(0.25	)
Total from investment operations		(0.10	)		0.12
From net investment income		(0.56	)		(0.33	)
From net realized gain		—	3		—
Total distributions		(0.56	)		(0.33	)
Net asset value, end of year	$	9.13		$	9.79
Total return (%)4,5		(0.07	)		1.236
Ratios and supplemental data
Net assets, end of year (in millions)	$	110		$	11
Ratios (as a percentage of average net assets):
Expenses before reductions		1.23			1.527
Expenses net of all fee waivers		1.20			1.187
Expenses net of all fee waivers and credits		1.20			1.187
Net investment income		6.16			5.707
Portfolio turnover (%)		43			11

_____________________

1	Class A shares began operations on 1-2-08.
2	Based on the average of the shares outstanding.
3	Less than $0.01 per share.
4	Total returns would have been lower had certain expenses not been reduced during the periods shown.
5	Assumes dividend reinvestment and does not reflect the effect of sales charges.
6	Not annualized.
7	Annualized.

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

FINANCIAL STATEMENTS

CLASS B SHARES Period ended		8-31-09			8-31-08	1
Per share operating performance
Net asset value, beginning of year	$	9.79		$	10.00
Net investment income2		0.49			0.31
Net realized and unrealized loss on investments		(0.65	)		(0.24	)
Total from investment operations		(0.16	)		0.07
Less distributions
From net investment income		(0.50	)		(0.28	)
From net realized gain		—	3		—
Total distributions		(0.50	)		(0.28	)
Net asset value, end of year	$	9.13		$	9.79
Total return (%)4,5		(0.80	)		0.76	6
Ratios and supplemental data
Net assets, end of year (in millions)	$	3		$	1
Ratios (as a percentage of average net assets):
Expenses before reductions		3.86			4.76	7
Expenses net of all fee waivers		1.95			1.93	7
Expenses net of all fee waivers and credits		1.95			1.93	7
Net investment income		5.53			4.78	7
Portfolio turnover (%)		43			11

¹ Class B shares began operations on 1-2-08.

² Based on the average of the shares outstanding.

³ Less that $0.01 per share.

⁴ Total returns would have been lower had certain expenses not been reduced during the periods shown.

⁵ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁶ Not annualized.

⁷ Annualized.

CLASS C SHARES Period ended		8-31-09			8-31-08	1
Per share operating performance
Net asset value, beginning of year	$	9.80		$	10.00
Net investment income2		0.47			0.32
Net realized and unrealized loss on investments		(0.62	)		(0.24	)
Total from investment operations		(0.15	)		0.08
Less distributions
From net investment income		(0.49	)		(0.28	)
From net realized gain		—	3		—
Total distributions		(0.49	)		(0.28	)
Net asset value, end of year	$	9.16		$	9.80
Total return (%)4,5		(0.69	)		0.81	6
Ratios and supplemental data
Net assets, end of year (in millions)	$	23		$	2
Ratios (as a percentage of average net assets):
Expenses before reductions		2.09			2.32	7
Expenses net of all fee waivers		1.95			1.95	7
Expenses net of all fee waivers and credits		1.95			1.95	7
Net investment income		5.39			4.96	7
Portfolio turnover (%)		43			11

¹ Class C shares began operations on 1-2-08.

² Based on the average of the shares outstanding.

³ Less that $0.01 per share.

⁴ Total returns would have been lower had certain expenses not been reduced during the periods shown.

⁵ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁶ Not annualized.

⁷ Annualized.

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

FINANCIAL STATEMENTS

CLASS I SHARES Period ended		8-31-09			8-31-08	1
Per share operating performance
Net asset value, end of year	$	9.79		$	10.00
Net investment income2		0.60			0.37
Net realized and unrealized loss on investments		(0.68	)		(0.22	)
Total from investment operations		(0.08	)		0.15
Less distributions
From net investment income		(0.59	)		(0.36	)
From net realized gain		—	3		—
Total distributions		(0.59	)		(0.36	)
Net asset value, end of year	$	9.12		$	9.79
Total return (%)4,5		0.25			1.526
Ratios and supplemental data
Net assets, end of year (in millions)	$	40		$	1
Ratios (as a percentage of average net assets):
Expenses before reductions		0.95			4.48	7
Expenses net of all fee waivers		0.85			0.82	7
Expenses net of all fee waivers and credits		0.85			0.82	7
Net investment income		6.36			5.78	7
Portfolio turnover (%)		43			11

¹ Class I shares began operations on 1-2-08.

² Based on the average of the shares outstanding.

³ Less than $0.01 per share.

⁴ Total returns would have been lower had certain expenses not been reduced during the periods shown.

⁵ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁶ Not annualized.

⁷ Annualized.

CLASS 1 SHARES Period ended		8-31-09			8-31-08	1
Per share operating performance
Net asset value, end of year	$	9.78		$	10.00
Net investment income2		0.59			0.38
Net realized and unrealized loss on investments		(0.65	)		(0.23	)
Total from investment operations		(0.06	)		0.15
Less distributions
From net investment income		(0.60	)		(0.37	)
From net realized gain		—	3		—
Total distributions		(0.60	)		(0.37	)
Net asset value, end of year	$	9.12		$	9.78
Total return (%)4		0.40			1.485
Ratios and supplemental data
Net assets, end of year (in millions)		—	6		—	6
Ratios (as a percentage of average net assets):
Expenses before reductions		0.80			0.78	7
Expenses net of all fee waivers		0.80			0.78	7
Expenses net of all fee waivers and credits		0.80			0.78	7
Net investment income		7.13			5.83	7
Portfolio turnover (%)		43			11

¹ Class 1 shares began operations on 1-2-08.

² Based on the average of the shares outstanding.

³ Less than $0.01 per share.

⁴ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁵ Not annualized.

⁶ Less than $500,000.

⁷ Annualized.

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

FINANCIAL STATEMENTS

CLASS NAV Period ended		8-31-09			8-31-08	1
Per share operating performance
Net asset value, beginning of year	$	9.79		$	10.00
Net investment income2		0.60			0.40
Net realized and unrealized loss on investments		(0.67	)		(0.24	)
Total from investment operations		(0.07	)		(0.16	)
Less distributions
From net investment income		(0.60	)		(0.37	)
From net realized gain		—	3		—
Total distributions		(0.60	)		(0.37	)
Net asset value, end of year	$	9.12		$	9.79
Total return (%)4		0.31			1.595
Ratios and supplemental data
Net assets, end of year (in millions)	$	962		$	510
Ratios (as a percentage of average net assets):
Expenses before reductions		0.75			0.75	6
Expenses net of all fee waivers		0.75			0.75	6
Expenses net of all fee waivers and credits		0.75			0.75	6
Net investment income		7.08			6.16	6
Portfolio turnover (%)		43			11

¹ Class NAV shares began operations on 1-2-08.

² Based on the average of the shares outstanding.

³ Less than $0.01 per share.

⁴ Assumes dividend reinvestment and does not reflect the effect of sales charges.

⁵ Not annualized.

⁶ Annualized.

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

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

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 affiliates of MFC. Class NAV shares are sold to affiliated 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 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.

The Adviser and other affiliates of MFC owned 11,173 shares of beneficial interest of Class 1 on August 31, 2009.

Certain investors in the Fund are affiliated funds and are managed by the Adviser and its affiliates. The affiliated funds do not invest in the Fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the Fund’s net assets. For the year ended August 31, 2009, the Fund had an affiliate fund ownership concentration of 84.1% of the Fund’s net assets.

Note 2
Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end and through the date that the financial statements were issued, October 23, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security valuation

Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Equity securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated price if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer supplied and electronic data processing techniques, 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

Annual report | Floating Rate Income Fund      29

and other market data as well as broker quotes. 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. Debt obligations, for which there are no prices available from an independent pricing service, are valued based on broker quotes or fair valued as described below. Certain short-term debt instruments are valued at amortized cost. John Hancock Collateral Investment Trust (JHCIT), an affili-ated registered investment company managed by John Hancock Advisers, LLC, a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of MFC, is valued at its net asset value each business day. JHCIT is a floating rate fund investing in money market instruments.

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 Fund’s Pricing committee in accordance with procedures adopted by the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. 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.

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 and market conditions, interest rates, investor perceptions and market liquidity.

Fair value measurements

The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

Level 1 — Exchange traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights, options and futures. In addition, investment companies, including mutual funds, are valued using this technique.

Level 2 — Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities. Also, over-the-counter derivative contracts, including swaps, foreign forward currency contracts, and certain options, use these techniques.

Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Fund’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may not only use observable or unobservable inputs but may also include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

30     Floating Rate Income Fund | Annual report

The following is a summary of the inputs used to value the Fund’s investments as of August 31, 2009, by major security category or security type.

Investments in Securities		LEVEL 1		LEVEL 2		LEVEL 3		TOTALS
Common Stock	$	94,982		—		—	$	94,982
Corporate Bond		—	$	137,341,517		—		137,341,517
Preferred Stock		—		—	$	1,968,862		1,968,862
Term Loan		—		934,732,185		—		934,732,185
U.S. Government Agency Obligation		—		32,726,608		—		32,726,608
Short Term Investments		31,299,815		106,254,860		—		137,554,675
Total Investments in Securities	$	31,394,797	$	1,211,055,170	$	1,968,862	$	1,244,418,829

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

		PREFERRED STOCK
Balance as of August 31, 2008	$	0
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		820,799
Net purchases (sales)		1,148,063
Net transfers in and/out of Level 3		—
Balance as of August 31, 2009	$	1,968,862

Loan participations and assignments

A 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. 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, 2009, the Fund held positions in unfunded loan commitments. The total principal amount and market value of unfunded commitments totaled $3,915,927 and $1,882,907, respectively. The coupon rate for unfunded loan commitments will be determined at time of settlement.

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 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 a third-party custodian bank in a segregated account for the benefit of the Fund and the counterparty.

Annual report | Floating Rate Income Fund      31

Security transactions and related investment income

Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is 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.

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

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 associated with the 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 no less than the market value of the loaned securities.

The market value of the loaned securities is determined at the close of business of the Fund. Any additional required cash collateral is delivered to the Fund or excess collateral is returned to the borrower on the next business day. Cash collateral received is invested in JHCIT. JHCIT is not a stable value fund and thus the Fund receives the benefit of any gains and bears any losses generated by JHCIT.

The Fund may receive compensation for lending their securities either in the form of fees, and/or by retaining a portion of interest on the investment of any cash received as collateral. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. The Fund bears the risk in the event that invested collateral is not sufficient to meet obligations due on loans.

Line of credit

The Fund has entered into an agreement which enables the Fund to participate in a $300 million unsecured committed line of credit with State Street Corporation (the Custodian).The Fund is permitted to have bank borrowings for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. 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 0.08% 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. Prior to February 19, 2009, the commitment fee was 0.05% per annum. For the year ended August 31, 2009, 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, that is not segregated, to the maximum extent permitted by law, to the extent of any overdraft.

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,

32     Floating Rate Income Fund | Annual report

among other things, the nature and type of expense and the relative size of the Fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations

Income, common expenses and realized and unrealized gains (losses) are determined at the Fund level and allocated daily to each class of shares based on the appropriate net asset value of the respective classes. Dividends from net investment income are determined at a class level and distributions from capital gains are determined at the Fund level. Distribution and service fees, if any, transfer agent fees, state registration fees and printing and postage fees for Class A, Class B, Class C, Class I and Class 1 shares 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.

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 $1,109,501 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, it will reduce the amount of capital gain distribution to be paid. The loss carryforward expires as follows: August 31, 2017 — $1,109,501.

Net capital losses of $12,059,796 that are attributable to security transactions incurred after October 31, 2008, are treated as arising on September 1, 2009, the first day of the Fund’s next taxable year.

As of July 31, 2009, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. Each of the Fund’s federal tax returns filed in the 2-year period ended August 31, 2009 remains subject to examination by the Internal Revenue Service.

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 are distributed at least annually. During the year ended August 31, 2008, the tax character of distributions paid was as follows: ordinary income $14,444,876. During the year ended August 31, 2009, the tax character of distributions paid was as follows: ordinary income $48,419,501. 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, 2009, the components of distributable earnings on a tax basis included $1,339,091 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. Permanent book-tax differences are primarily attributable to amortization and accretion on debt securities.

Note 3
Risk and uncertainties
Sector risk

The Funds may focus investments in a particular industry or sector of the economy or invest in a limited number of companies. Accordingly, this focus may make the Fund’s value more volatile and investment values may rise and fall more rapidly. In addition, a fund with a specific focus is particularly susceptible to the impact of market, economic, regulatory and other factors affecting this focus.

Annual report | Floating Rate Income Fund      33

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
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.

Note 5
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 $1,100,000,000 of the Fund’s aggregate daily net assets, (b)0.675% of the next $900,000,000 and (c) 0.65% of the Fund’s aggregate net assets in excess of $2,000,000,000. Aggregate net assets include the net assets of the Fund and Floating Rate Income Trust, a series of John Hancock Trust. John Hancock Trust is an affiliated open-end investment company. 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 year ended August 31, 2009, were equivalent to an annual effective rate of 0.70% of the Fund’s average daily net assets.

The Adviser has agreed to contractually limit fund level expenses to 0.80% 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, 0.85% for Class I and 0.85% for Class 1. Accordingly, the expense reductions related to these expense limitations amounted to $12,806, $17,144, $11,177 and $11,287 for Class A, Class B, Class C and Class I, respectively, for the year ended August 31, 2009. This expense reimbursement shall continue in effect until December 31, 2009, 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 accounting and legal services fees incurred for the year ended August 31, 2009, were equivalent to an annual effective rate of 0.02% of the Fund’s average daily net assets.

34     Floating Rate Income Fund | Annual report

The Fund 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 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 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 year ended August 31, 2009, the Distributor received net up-front sales charges of $233,518 with regard to sales of Class A shares. Of this amount, $41,331 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $191,775 was paid as sales commissions to unrelated broker-dealers and $412 was paid as sales commissions to sales personnel of Signator Investors, Inc. (Signator Investors, an affiliated broker-dealer).

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, 2009, CDSCs received by the Distributor amounted to $3,487 for Class B shares and $10,266 for Class C shares.

The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. The transfer agent fees are made up of three components, three of which are class specific:

• The Fund pays a monthly transfer agent fee at an annual rate of 0.015% of average daily net assets of Class A, B, C and Class I.

• The Fund pays a monthly fee which is based on an annual rate of $17.50 for each shareholder account for Class A, B, C and I.

• In addition, Signature Services is reimbursed for certain out-of-pocket expenses.

Signature Services has agreed to contractually limit the transfer agent expenses to 0.20% for Class A, B, C and I until December 31, 2008, after which it expired. Waivers and reimbursements under this plan were $369, $44 and $126 for Class B, C and I, respectively, for the year ended August 31, 2009.

The Fund receives earnings credits from Signature Services 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, 2009, the Fund had no transfer agent credits.

Effective January 1, 2009, the Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursement or waivers occurred. For the year ended August 31, 2009, the Adviser recaptured $8,711. The amount of waived or reimbursed expenses subject to potential recovery that expire in 2012 is $48,759.

Annual report | Floating Rate Income Fund      35

Class level expenses including the allocation of the transfer agent fees for the year ended August 31, 2009, were as follows:

Share class	Distribution and service fees		Transfer agent fees		State registration fees		Printing and postage fees
Class A	$	112,752	$	55,479	$	23,377	$	6,832
Class B		9,187		3,289		16,323		6
Class C		81,590		10,917		17,866		2,671
Class I		—		12,247		17,205		325
Class 1		44		—		—		—
	$	203,573	$	81,932	$	74,771	$	9,834

Note 6

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 7
Fund share transactions

This listing illustrates the number of Fund shares sold, reinvested and repurchased during the year ended August 31, 2009 and the period ended August 31, 2008, along with the corresponding dollar value.

	Year ended 8-31-09						Period ended 8-31-081
	Shares			Amount			Shares			Amount
Class A shares
Sold		13,256,906		$	112,474,192			1,329,899		$	13,206,325
Distributions reinvested		205,132			1,763,255			9,729			95,892
Repurchased		(2,559,338	)		(21,748,219	)		(213,580	)		(2,097,127	)
Net increase		10,902,700		$	92,489,228			1,126,048		$	11,205,090
Class B shares
Sold		307,142		$	2,616,569			58,075		$	577,247
Distributions reinvested		4,272			36,035			600			5,918
Repurchased		(82,017	)		(706,874	)		(5,208	)		(51,078	)
Net increase		229,397		$	1,945,730			53,467		$	532,087
Class C shares
Sold		3,834,786		$	31,662,853			754,582		$	7,603,991
Distributions reinvested		34,380			293,518			4,583			45,305
Repurchased		(1,493,791	)		(11,784,118	)		(597,997	)		(5,866,593	)
Net increase		2,375,375		$	20,172,253			161,168		$	1,782,703
Class I shares
Sold		4,537,790		$	38,156,103			54,851		$	541,500
Distributions reinvested		60,304			529,058			587			5,779
Repurchased		(236,315	)		(1,998,320	)		—			—
Net increase		4,361,779		$	36,686,841			55,438		$	547,279
Class 1 shares
Sold		—			—			10,000		$	100,000
Distributions reinvested		796			6,419			377			3,720
Net increase		796		$	6,419			10,377		$	103,720

36     Floating Rate Income Fund | Annual report

	Year ended 8-31-09						Period ended 8-31-081
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		52,232,638		$	424,494,327			51,467,289		$	512,243,892
Distributions reinvested		5,526,484			44,957,932			1,441,398			14,251,483
Repurchased		(4,480,589	)		(36,901,582	)		(779,535	)		(7,686,341	)
Net increase		53,278,533		$	432,550,677			52,129,152		$	518,809,034
Net increase		71,148,580		$	583,851,148			53,535,650		$	532,979,913

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

Note 8
Purchases and sales of securities

Purchases and proceeds from sales or maturities of securities, other than short-term securities, during the year ended August 31, 2009, aggregated $915,780,591 and $296,289,380, respectively.

Annual report | Floating Rate Income Fund      37

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of John Hancock Floating Rate Income Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule 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 John Hancock Floating Rate Income Fund (the “Fund”) at August 31, 2009 and the results of its operations, the changes in its 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 Fund’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, 2009 by correspondence with the custodian and brokers, and the application of alternative procedures where securities purchased confirmations had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 23, 2009

38     Floating Rate Income 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, 2009.

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 2009.

Shareholders will be mailed a 2009 U.S. Treasury Department Form 1099-DIV in January 2010. This will reflect the total of all distributions that are taxable for calendar year 2009.

Annual report | Floating Rate Income Fund      39

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 the Subadvisory Agreement (the Subadvisory Agreement) for the Fund, a series of John Hancock Funds II (the Trust).

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 28–29, 2009, 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

40     Floating Rate Income Fund | Annual report

		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 sub-advisory 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,
	(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
	(e)	considered that the Adviser should be entitled to earn a reasonable level of profits in exchange for the level of services it provide 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’ anticipated level of profit-ability 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

Annual report | Floating Rate Income Fund      41

	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.
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 28–29, 2009, 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 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 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 Adviser and Western Asset Management Company.
(6)	The Adviser has entered into an agreement with Western Asset Management Company (WAMCO) regarding the Fund in which WAMCO agrees that it will not to serve as investment adviser (including subadviser) to another investment company that is sold to retail investors and is managed in a style similar to the Fund for a period of five years

42     Floating Rate Income Fund | Annual report

and the Adviser agrees that it will develop a program for the marketing of the fund. In the event WAMCO should advise such an investment company, the agreement would entitle the Adviser to $2 million in liquidated damages due to the fact that the Adviser and the distributor to the Fund will make unreimbursed expenditures in the organization and ongoing promotion of the fund. However, WAMCO is not required to pay the Adviser such liquidated damages if the Fund does not reach certain asset levels (which range from $500 million on the first anniversary of the Fund’s commencement to $2 billion on the fourth anniversary of the Fund’s commencement) assuming certain performance requirements are met. The agreement also provides that if WAMCO is terminated as subadviser to the fund, then WAMCO is released from any obligation to pay the Adviser such liquidated damages. Therefore, the Adviser has a financial interest in not having the Board terminate WAMCO as subadviser to the fund for a five year period.

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

Appendix A
Portfolio	Performance of Trust
(Subadviser)	as of March 31, 2009	Fees and Expenses	Other Comments
Floating Rate Income Fund (Western Asset Management Company*) * Western Asset Management Company Limited serves as sub-subadviser	The Fund modestly outperformed the benchmark index over the one-year period. The Fund out- performed the Morningstar Category Average over the one- year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 commenced operations December 31, 2007, and has limited performance. In reviewing the Fund, the Board considered this limited performance as well as market conditions during this period. The Board noted the Fund’s favorable performance since inception. The Board took into account management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure.

Annual report | Floating Rate Income Fund      43

Trustees and Officers

This chart provides information about the Trustees and Officers of John Hancock Funds II 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, Year of Birth	Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
Charles L. Bardelis, Born: 1941	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, 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).

Theron S. Hoffman,² 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, 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, Born: 1946 2008 212

Chairman of the Board of John Hancock Funds II; 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 (since 1995); and Connecticut River Bancorp, Director (since 1998); Virtus Investment Management (since 2009); and Emerson Investment Management (since 2000). Trustee of John Hancock Trust (since 2004) and former Trustee of John Hancock Funds III (2005–2006).

44     Floating Rate Income Fund | Annual report

Independent Trustees (continued)
Name, Year of Birth	Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
Steven M. Roberts,2 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).

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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust.

2

Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

Trustee Emeritus

Name, Year of Birth	Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since	by Trustee
John D. Richardson,1 Born: 1938	2008	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 Mr. Richardson became a non-voting Trustee Emeritus on December 14, 2006.

Non-Independent Trustees^1,2

Name, Year of Birth	Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1,2	by Trustee
James R. Boyle,3 Born: 1959	2008	264

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).

Annual report | Floating Rate Income Fund      45

1	Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
2	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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust 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 position with Manulife Financial Corporation (or its affiliates), the ultimate 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	Officer
Principal occupation(s) and other	of Fund
directorships during past 5 years	since
Hugh McHaffie, Born: 1959	2009

President

Executive Vice President, John Hancock Wealth Management (since 2006, including prior positions); Senior Vice President, Individual Business Product Management, MetLife, Inc. (1999–2006); Vice President, Annuity Product Management, John Hancock Life Insurance Company (1990–1999).

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).

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).

46     Floating Rate Income Fund | Annual report

Principal officers who are not Trustees (continued)
Name, Year of Birth
Position(s) held with Fund	Officer
Principal occupation(s) and other	of Fund
directorships during past 5 years	since
Michael J. Leary, Born: 1965	2008

Treasurer

Vice President, John Hancock Life Insurance Company (U.S.A.) and Treasurer for John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since May 2009); Assistant Treasurer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2007–2009); Vice President and Director of Fund Administration, JP Morgan (2004–2007); Vice President and Senior Manager of Fund Administration, JP Morgan (1993–2004); Manager, Ernst & Young, LLC (1988–1993).

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).

John G. Vrysen, Born: 1955 2008

Chief Operating Officer (since 2005)

Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group, John Hancock Investment Management Services, LLC and John Hancock Funds, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, the Adviser, The Berkeley Group, Manulife Financial Corporation Global Investment Management (U.S.), LLC, John Hancock Investment Management Services, LLC, John Hancock Funds, LLC, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005–2007); Vice President, Manulife Financial Corporation (until 2006).

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 | Floating Rate Income Fund      47

More information

Trustees
James M. Oates,** Chairman
James R. Boyle†
Grace K. Fey**†
Charles L. Bardelis*
Peter S. Burgess*
Theron S. Hoffman**
Hassell H. McClellan**
Steven M. Roberts*
John D. Richardson, Trustee Emeritus
*	Member of the Audit Committee
**	Member of the Compliance Committee
†	Non-Independent Trustee
Officers
Hugh McHaffie
President
Thomas M. Kinzler
Secretary and Chief Legal Officer
Francis V. Knox, Jr.
Chief Compliance Officer
Michael J. Leary
Treasurer
Charles A. Rizzo
Chief Financial Officer
John G. Vrysen
Chief Operating Officer
Investment adviser
John Hancock Investment Management Services, LLC
Subadviser
Western Asset Management Company
Principal distributor
John Hancock Funds, LLC
Custodian
State Street Bank and Trust Company
Transfer agent
John Hancock Signature Services, Inc.
Legal counsel
K&L Gates LLP
Independent registered public accounting firm
PricewaterhouseCoopers LLP

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

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

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

You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 9510	Mutual Fund Image Operations
	Portsmouth, NH 03802-9510	164 Corporate Drive
	Portsmouth, NH 03801

48     Floating Rate Income Fund | 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 8/09
It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.	10/09

Management’s discussion of
Fund performance

Stocks began the year ended August 31, 2009, in a freefall, triggered by turmoil in the credit markets, the collapse of several major financial institutions and the deepening economic recession. Government initiatives, which included bailout programs, interest-rate cuts and credit stress tests on the nation’s largest banks, finally began to bear fruit in the spring. As the outlook for the economy improved, stocks rallied sharply, led by the most beaten-down of sectors — namely financials and materials. More defensive sectors, such as health care and consumer staples, held up best, however, for the full year. Despite strong gains in the spring and summer, the Standard & Poor’s 500 Index closed the 12-month period with a –18.25% return.

The Russell 1000 Value Index returned –20.27% for the year, while the Morningstar, Inc. large value category average return was –17.76%. By comparison, John Hancock Optimized Value Fund’s Class NAV shares returned –22.19% at net asset value. For the 12-month period, the Fund was hurt by disappointing stock selection, especially in consumer staples and health care. Detractors included Herbalife Ltd., a personal nutrition and weight management company, and Bunge Ltd., a fertilizer and soybean company operating in Brazil. Both consumer staples stocks posted steep declines as the recession caused customers to cut back on spending. Elsewhere, Williams Companies, Inc., which focuses on the marketing and storage of natural gas, fell sharply as natural gas prices came down. All three stocks were sold before period end. Our biggest gains came from financials, where we were well positioned in stocks that had been oversold. Winners included Macerich Co., a mall real estate investment trust (REIT), and Lincoln National Corp., a life insurer. Both names rallied sharply once the equity and credit markets started to improve. We sold Macerich in August.

“As the outlook for the economy improved, stocks rallied sharply, led by the most beaten-down of sectors …”

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.

6     Optimized Value Fund | Annual report

A look at performance

For the period ended August 31, 2009

			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
A1		10-15-05			–26.56		—		—		–6.31		–26.56		—		—		–22.33
B1		10-15-05			–26.90		—		—		–6.34		–26.90		—		—		–22.45
C1		10-15-05			–23.96		—		—		–5.73		–23.96		—		—		–20.46
I1,2		10-15-05			–22.30		—		—		–4.55		–22.30		—		—		–16.53
11,2		10-15-05			–22.32		—		—		–4.55		–22.32		—		—		–16.54
NAV1,2		10-15-05			–22.19		—		—		–4.50		–22.19		—		—		–16.34

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, 2009. The net expenses are as follows: Class A — 1.29%, Class B — 1.99%, Class C –1.99%, Class I –0.84%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 28.82%, Class B — 71.10%, Class C — 72.97%, Class I — 71.55%. For the other classes, the net expenses equal the gross expenses and are as follows: Class 1 — 0.73%, Class NAV — 0.69%. The Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.

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	October 15, 2005 is the inception date for the oldest class of shares, Class NAV shares. Class A, B, C and Class I shares were first offered on December 31, 2007. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A, B, C and I shares, respectively.
2	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.

					With maximum
Class	Period beginning		Without sales charge		sales charge		Index
A2		10-15-05	$	8,175	$	7,767	$	9,018
B2		10-15-05		7,962		7,755		9,018
C2		10-15-05		7,954		7,954		9,018
I1,2		10-15-05		8,347		8,347		9,018
11		10-15-05		8,346		8,346		9,018

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, 2009. 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	For certain types of investors, as described in the Fund’s Class NAV, Class I and Class 1 share prospectuses.
2	October 15, 2005 is the inception date for the oldest class of shares, Class NAV shares. Class A, B, C and Class I shares were first offered on December 31, 2007. The returns prior to this date are those of Class NAV shares that have been recalculated to apply the gross fees and expenses of Class A, B, C and I shares, respectively.

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, 2009 with the same investment held until August 31, 2009.

		Account value		Ending value		Expenses paid during
		on 3-1-09		8-31-09		period ended 8-31-091
Class A	$	1,000.00	$	1,377.30	$	7.73
Class B		1,000.00		1,371.50		11.90
Class C		1,000.00		1,372.00		11.90
Class I		1,000.00		1,379.90		5.04
Class 1		1,000.00		1,380.50		4.68
Class NAV		1,000.00		1,381.90		4.50

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, 2009, 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
[ My account value $8,600.00/ $1,000.00 = 8.6 ]	x	$[ “expenses paid” ]	=	My actual
		from table		expenses

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’ 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, 2009, with the same investment held until August 31, 2009. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses.

		Account value		Ending value		Expenses paid during
		on 3-1-09		8-31-09		period ended 8-31-091
Class A	$	1,000.00	$	1,018.70	$	6.56
Class B		1,000.00		1,015.20		10.11
Class C		1,000.00		1,015.20		10.11
Class I		1,000.00		1,021.00		4.28
Class 1		1,000.00		1,021.30		3.97
Class NAV		1,000.00		1,021.40		3.82

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%, 1.99%, 1.99%, 0.84%, 0.78% 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 184/365 (to reflect the one-half year period).

10     Optimized Value Fund | Annual report

Portfolio summary

Top 10 holdings1
JPMorgan Chase & Company	3.5%	ConocoPhillips Company	2.1%
Exxon Mobil Corp.	3.3%	CenturyTel, Inc.	2.0%
General Electric Company	3.1%	AT&T, Inc.	1.9%
International Business Machines Corp.	2.6%	Chevron Corp.	1.9%
Wells Fargo & Company	2.2%	Sempra Energy	1.8%
Sector composition2,3
Financial	26%	Utilities	6%
Energy	19%	Consumer cyclical	5%
Consumer, non-cyclical	15%	Technology	5%
Industrial	13%	Basic materials	1%
Communications	9%	Short-term investments & other	1%

1	As a percentage of net assets on August 31, 2009. Excludes cash and cash equivalents.
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.
3	As a percentage of net assets on August 31, 2009.

Annual report | Optimized Value Fund      11

Fund’s investments

FINANCIAL STATEMENTS

Securities owned by the Fund on 8-31-09

Issuer	Shares		Value
Common stocks 99.27%		$	294,733,394
(Cost $258,332,127)
Aerospace 2.83%			8,414,261
Alliant Techsystems, Inc. (I)	48,526		3,750,089
General Dynamics Corp.	78,800		4,664,172
Apparel & Textiles 0.95%			2,815,166
Coach, Inc.	99,511		2,815,166
Auto Parts 1.47%			4,353,897
Johnson Controls, Inc.	175,773		4,353,897
Banking 6.50%			19,293,309
Bank of America Corp.	289,923		5,099,745
Bank of New York Mellon Corp.	83,589		2,475,070
Credit Suisse Group AG, SADR	37,825		1,924,914
Hudson City Bancorp, Inc.	160,573		2,106,718
PNC Financial Services Group, Inc.	120,015		5,111,439
U.S. Bancorp	113,856		2,575,423
Biotechnology 0.71%			2,112,287
Amgen, Inc. (I)	35,358		2,112,287
Business Services 2.12%			6,295,907
Alliance Data Systems Corp. (I)	58,633		3,257,649
Convergys Corp. (I)	138,721		1,503,736
SAIC, Inc. (I)	82,992		1,534,522
Cable & Television 2.98%			8,858,083
Comcast Corp., Class A	237,888		3,644,444
DISH Network Corp. (I)	165,323		2,696,418
Viacom, Inc., Class B (I)	100,528		2,517,221
Cellular Communications 0.54%			1,598,789
NII Holdings, Inc. (I)	67,431		1,598,789
Chemicals 1.03%			3,074,280
Celanese Corp., Series A	120,702		3,074,280
Computers & Business Equipment 3.03%			8,997,662
Cisco Systems, Inc. (I)	66,409		1,434,434
International Business Machines Corp.	64,068		7,563,228
Containers & Glass 2.21%			6,549,446
Owens-Illinois, Inc. (I)	105,464		3,579,448
Pactiv Corp. (I)	119,517		2,969,998

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

FINANCIAL STATEMENTS

Issuer	Shares		Value
Cosmetics & Toiletries 0.50%		$	1,476,537
Colgate-Palmolive Company	20,310		1,476,537
Crude Petroleum & Natural Gas 4.58%			13,589,915
Apache Corp.	60,014		5,098,189
Marathon Oil Corp.	97,096		2,997,354
Plains Exploration & Production Company (I)	108,298		2,842,822
XTO Energy, Inc.	68,693		2,651,550
Electrical Utilities 2.90%			8,600,815
Dominion Resources, Inc.	110,856		3,667,116
DPL, Inc.	69,675		1,725,850
FPL Group, Inc.	32,565		1,829,502
Mirant Corp. (I)	81,801		1,378,347
Energy 2.38%			7,066,192
Duke Energy Corp.	103,135		1,597,561
Sempra Energy	109,002		5,468,631
Financial Services 13.15%			39,035,521
Ameriprise Financial, Inc.	84,892		2,549,307
Broadridge Financial Solutions, Inc.	135,589		2,822,963
Citigroup, Inc.	304,816		1,524,080
Goldman Sachs Group, Inc.	27,567		4,561,236
JPMorgan Chase & Company	236,155		10,263,296
Lender Processing Services, Inc.	44,239		1,516,513
Morgan Stanley	52,169		1,510,814
NASDAQ OMX Group, Inc. (I)	175,383		3,849,657
State Street Corp.	76,376		4,008,212
Wells Fargo & Company	233,628		6,429,443
Food & Beverages 1.92%			5,698,145
ConAgra Foods, Inc.	93,391		1,917,317
Dr Pepper Snapple Group, Inc. (I)	66,202		1,750,381
McCormick & Company, Inc.	62,341		2,030,447
Gas & Pipeline Utilities 0.78%			2,328,884
UGI Corp.	91,293		2,328,884
Healthcare Products 2.76%			8,194,976
Baxter International, Inc.	84,966		4,836,265
Johnson & Johnson	55,571		3,358,711
Healthcare Services 1.58%			4,690,343
DaVita, Inc. (I)	61,300		3,169,823
Express Scripts, Inc. (I)	21,054		1,520,520
Household Appliances 1.03%			3,052,027
Stanley Works	74,567		3,052,027
Household Products 1.71%			5,085,245
Newell Rubbermaid, Inc.	152,207		2,118,721
Tupperware Brands Corp.	80,198		2,966,524
Industrial Machinery 1.12%			3,319,533
Pall Corp.	111,656		3,319,533

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

FINANCIAL STATEMENTS

Issuer	Shares		Value
Industrials 3.63%		$	10,785,541
Aecom Technology Corp. (I)	57,447		1,574,622
General Electric Company	662,656		9,210,919
Insurance 3.53%			10,475,468
ACE, Ltd.	37,181		1,940,105
American Financial Group, Inc.	104,083		2,669,729
Endurance Specialty Holdings, Ltd.	75,371		2,598,038
Lincoln National Corp.	129,461		3,267,596
International Oil 7.35%			21,833,877
Chevron Corp.	80,473		5,628,282
ConocoPhillips Company	140,805		6,340,449
Exxon Mobil Corp.	142,663		9,865,146
Petroleum Services 6.64%			19,704,548
ENSCO International, Inc.	45,112		1,664,633
Noble Corp.	111,552		3,907,666
Schlumberger, Ltd.	15,103		848,789
Tidewater, Inc.	82,949		3,580,908
Total SA, SADR	79,436		4,549,300
Transocean, Ltd. (I)	67,949		5,153,252
Pharmaceuticals 3.63%			10,772,500
Abbott Laboratories	103,146		4,665,294
Mylan, Inc. (I)	161,406		2,367,826
Pfizer, Inc.	223,915		3,739,380
Railroads & Equipment 1.74%			5,157,333
CSX Corp.	121,349		5,157,333
Real Estate 3.72%			11,038,294
Annaly Capital Management, Inc., REIT	237,097		4,111,262
Brookfield Properties Corp. REIT	133,554		1,465,087
Hospitality Properties Trust, REIT	137,273		2,501,114
SL Green Realty Corp., REIT	83,900		2,960,831
Retail Trade 2.40%			7,135,093
CVS Caremark Corp.	106,478		3,995,055
Ross Stores, Inc.	67,325		3,140,038
Semiconductors 2.93%			8,712,475
Intel Corp.	129,491		2,631,257
PMC-Sierra, Inc. (I)	335,464		3,046,013
Taiwan Semiconductor Manufacturing Company, Ltd., SADR	283,664		3,035,205
Telephone 4.92%			14,617,045
AT&T, Inc.	221,554		5,771,482
CenturyTel, Inc.	179,694		5,791,538
Verizon Communications, Inc.	98,390		3,054,025

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

FINANCIAL STATEMENTS

		Principal
Issuer		amount		Value
Repurchase agreements 0.54%			$	1,596,000
(Cost $1,596,000)
Repurchase agreements 0.54%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,596,003 on 09/01/2009, collateralized by $1,840,000 U.S. Treasury Bonds, 3.50% due 02/15/2039 (valued at $1,630,700, including interest)	$	1,596,000	$	1,596,000
Total investments (Cost $259,928,127)† 99.81%			$	296,329,394
Other assets and liabilities, net 0.19%				562,140
Total net assets 100.00%			$	296,891,534

          Percentages are stated as a percent of net assets.

REIT Real Estate Investment Trust

SADR Sponsored American Depositary Receipts

(I)	Non-Income Producing
†	At August 31, 2009, the aggregate cost of investment securities for federal income tax purposes was $281,704,615. Net unrealized appreciation aggregated $14,624,779, of which $43,928,581 related to appreciated investment securities and $29,303,802 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 8-31-09

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 in unaffiliated issuers, at value (Cost $258,332,127)	$	294,733,394
Repurchase agreements, at value (Cost $1,596,000) (Note 2)		1,596,000
Total investments, at value (Cost $259,928,127)		296,329,394
Cash		155
Receivable for investments sold		3,561,064
Dividends and interest receivable		590,295
Receivable due from adviser		1,833
Total assets		300,482,741
Liabilities
Payable for investments purchased		3,440,285
Payable for fund shares repurchased		98,072
Payable to affiliates
Accounting and legal services fees		1,360
Transfer agent fees		360
Trustees’ fees		1,764
Other liabilities and accrued expenses		49,366
Total liabilities		3,591,207
Net assets
Capital paid-in	$	665,024,866
Accumulated undistributed net investment income		4,425,782
Accumulated net realized gain (loss) on investments, futures contracts and foreign currency transactions		(408,960,381	)
Net unrealized appreciation (depreciation) on investments		36,401,267
Net assets	$	296,891,534
Net asset value per share
Based on net asset values and shares outstanding-the Fund has an unlimited number of shares authorized with no par value.
Class A ($299,821 ÷ 30,873 shares)	$	9.71
Class B ($97,170 ÷ 10,009 shares)1	$	9.71
Class C ($16,132 ÷ 1,663 shares)1	$	9.70
Class I ($6,731 ÷ 689 shares)	$	9.77
Class 1 ($48,117,178 ÷ 4,929,586 shares)	$	9.76
Class NAV ($248,354,502 ÷ 25,432,191 shares)	$	9.77
Maximum offering price per share
Class A (net asset value per share ÷ 95%)2	$	10.22

1	Redemption price 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.

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

FINANCIAL STATEMENTS

Statement of operations For the year ended 8-31-09

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	$	11,079,092
Securities lending		297,994
Interest		26,337
Income from affiliated issuers		1,669
Less foreign taxes withheld		(32,680	)
Total investment income		11,372,412
Expenses
Investment management fees (Note 5)		2,667,196
Distribution and service fees (Note 5)		23,393
Transfer agent fees (Note 5)		2,823
Accounting and legal services fees (Note 5)		62,652
Trustees’ fees (Note 6)		7,703
State registration fees (Note 5)		59,213
Printing and postage fees (Note 5)		2,870
Professional fees		40,736
Custodian fees		46,961
Registration and filing fees		37,329
Miscellaneous		4,869
Total expenses		2,955,745
Less expense reductions (Note 5)		(64,467	)
Net expenses		2,891,278
Net investment income		8,481,134
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(242,122,361	)
Investments in affiliated underlying funds		11,471
Financial futures contracts (Note 3)		(2,219,901	)
Foreign currency transactions		585
		(244,330,206	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		39,072,870
Translation of assets and liabilities in foreign currencies		59
		39,072,929
Net realized and unrealized loss		(205,257,277	)
Decrease in net assets from operations	$	(196,776,143	)

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

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			Year
		ended			ended
		8-31-09			8-31-08
Increase (decrease) in net assets
From operations
Net investment income	$	8,481,134		$	13,145,616
Net realized loss		(244,330,206	)		(160,142,343	)
Change in net unrealized appreciation (depreciation)		39,072,929			(16,763,905	)
Decrease in net assets resulting from operations		(196,776,143	)		(163,760,632	)
Distributions to shareholders
From net investment income
Class A		(1,531	)		—
Class B		(328	)		—
Class C		(108	)		—
Class I		(180	)		—
Class 1		(1,443,321	)		(1,551,400	)
Class NAV		(11,271,727	)		(12,179,658	)
From net realized gain
Class 1		—			(6,958,131	)
Class NAV		—			(52,962,770	)
Total distributions		(12,717,195	)		(73,651,959	)
From Fund share transactions (Note 7)		(256,769,182	)		215,089,065
Total decrease		(466,262,520	)		(22,323,526	)
Net assets
Beginning of year		763,154,054			785,477,580
End of year	$	296,891,534		$	763,154,054
Undistributed net investment income	$	4,425,782		$	8,653,707

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

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		8-31-09			8-31-081
Per share operating performance
Net asset value, beginning of year	$	12.94		$	14.97
Net investment income2		0.11			0.10
Net realized and unrealized loss on investments		(3.08	)		(2.13	)
Total from investment operations		(2.97	)		(2.03	)
Less distributions
From net investment income		(0.26	)		—
Total distributions		(0.26	)		—
Net asset value, end of year	$	9.71		$	12.94
Total return (%)3,4		(22.70	)		(13.56	)5
Ratios and supplemental data
Net assets, end of year (in millions)		—	6		—	6
Ratios (as a percentage of average net assets):
Expenses before reductions		15.66			28.82	7
Expenses net of all fee waivers and credits		1.29			1.29	7
Expenses net of all fee waivers		1.29			1.29	7
Net investment income		1.27			1.22	7
Portfolio turnover (%)		147			159

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

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

FINANCIAL STATEMENTS

CLASS B SHARES Period ended		8-31-09			8-31-081
Per share operating performance
Net asset value, beginning of year	$	12.87		$	14.97
Net investment income2		0.05			0.03
Net realized and unrealized loss on investments		(3.05	)		(2.13	)
Total from investment operations		(3.00	)		(2.10	)
Less distributions
From net investment income		(0.16	)		—
Total distributions		(0.16	)		—
Net asset value, end of year	$	9.71		$	12.87
Total return (%)3,5		(23.13	)		(14.03	)4
Ratios and supplemental data
Net assets, end of year (in millions)		—	6		—	6
Ratios (as a percentage of average net assets):
Expenses before reductions		38.76			71.10	7
Expenses net of fee waivers		1.99			1.99	7
Expenses net of all fee waivers and credits		1.99			1.99	7
Net investment income		0.64			0.43	7
Portfolio turnover (%)		147			159

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

CLASS C SHARES Period ended		8-31-09			8-31-081
Per share operating performance
Net asset value, beginning of year	$	12.87		$	14.97
Net investment income2		0.06			0.03
Net realized and unrealized loss on investments		(3.07	)		(2.13	)
Total from investment operations		(3.01	)		(2.10	)
Less distributions
From net investment income		(0.16	)		—
Total distributions		(0.16	)		—
Net asset value, end of year	$	9.70		$	12.87
Total return (%)3,4		(23.21	)		(14.03	)5
Ratios and supplemental data
Net assets, end of year (in millions)		—	6		—	6
Ratios (as a percentage of average net assets):
Expenses before reductions		153.81			72.97	7
Expenses net of fee waivers		1.99			1.99	7
Expenses net of all fee waivers and credits		1.99			1.99	7
Net investment income		0.68			0.43	7
Portfolio turnover (%)		147			159

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

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

FINANCIAL STATEMENTS

CLASS I SHARES Period ended		8-31-09			8-31-081
Per share operating performance
Net asset value, beginning of year	$	12.97		$	14.97
Net investment income2		0.17			0.14
Net realized and unrealized loss on investments		(3.10	)		(2.14	)
Total from investment operations		(2.93	)		(2.00	)
Less distributions
From net investment income		(0.27	)		—
Total distributions		(0.27	)		—
Net asset value, end of year	$	9.77		$	12.97
Total return (%)3,4		(22.30	)		(13.36	)5
Ratios and supplemental data
Net assets, end of year (in millions)		—	6		—	6
Ratios (as a percentage of average net assets):
Expenses before reductions		281.41			71.55	7
Expenses net of fee waivers		0.84			0.84	7
Expenses net of all fee waivers and credits		0.84			0.84	7
Net investment income		1.97			1.59	7
Portfolio turnover (%)		147			159

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

CLASS 1 SHARES Period ended		8-31-09			8-31-08			8-31-07			8-31-06 1
Per share operating performance
Net asset value, beginning of year	$	12.98		$	17.55		$	16.56		$	14.09
Net investment income2		0.18			0.24			0.31			0.22
Net realized and unrealized gain (loss) on investments		(3.12	)		(3.32	)		1.68			2.31
Total from investment operations		(2.94	)		(3.08	)		1.99			2.53
Less distributions
From net investment income		(0.28	)		(0.27	)		(0.20	)		(0.06	)
From net realized gain		—			(1.22	)		(0.80	)		—	3
Total distributions		(0.28	)		(1.49	)		(1.00	)		(0.06	)
Net asset value, end of year	$	9.76		$	12.98		$	17.55		$	16.56
Total return (%)4		(22.32	)		(18.77	)		12.12			17.98	5
Ratios and supplemental data
Net assets, end of year (in millions)	$	48		$	69		$	106		$	96
Ratios (as a percentage of average net assets):
Expenses before reductions		0.79			0.73			0.74			0.79	6
Expenses net of fee waivers		0.79			0.73			0.74			0.79	6
Expenses net of all fee waivers and credits		0.79			0.73			0.74			0.79	6
Net investment income		2.05			1.63			1.75			1.62	6
Portfolio turnover (%)		147			159			169			127

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.

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

FINANCIAL STATEMENTS

CLASS NAV Period ended		8-31-09			8-31-08			8-31-07			8-31-06 1
Per share operating performance
Net asset value, beginning of year	$	12.98		$	17.57		$	16.56		$	14.09
Net investment income2		0.19			0.25			0.32			0.24
Net realized and unrealized gain (loss) on investments		(3.11	)		(3.34	)		1.69			2.29
Total from investment operations		(2.92	)		(3.09	)		2.01			2.53
Less distributions
From net investment income		(0.29	)		(0.28	)		(0.20	)		(0.06	)
From net realized gain		—			(1.22	)		(0.80	)		—	3
Total distributions		(0.29	)		(1.50	)		(1.00	)		(0.06	)
Net asset value, end of year	$	9.77		$	12.98		$	17.57		$	16.56
Total return (%)4		(22.19	)		(18.82	)		12.26			17.98	5
Ratios and supplemental data
Net assets, end of year (in millions)	$	248		$	694		$	680		$	362
Ratios (as a percentage of average net assets):
Expenses before reductions		0.73			0.69			0.69			0.74	6
Expenses net of fee waivers		0.73			0.69			0.69			0.74	6
Expenses net of all fee waivers and credits		0.73			0.69			0.69			0.74	6
Net investment income		2.18			1.69			1.81			1.73
Portfolio turnover (%)		147			159			169			127

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.

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

Notes to financial statements

Note 1 Organization

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

The Trustees had 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 were open to all retail investors. Class I shares were offered without any sales charge to various institutional and certain individual investors. On September 24, 2009, the Trustees authorized the liquidation of Class A, Class B, Class C and Class I shares on or about December 11, 2009. Class 1 shares are sold only to certain affiliates of MFC. 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.

At August 31, 2009, affiliates of MFC owned 688, 681, 681, and 689 shares of beneficial interest of Class A, Class B, Class C and Class I, respectively.

Certain investors in the Fund are affiliated funds and are managed by the Adviser and its affiliates. The affiliated funds do not invest in the Fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the Fund’s net assets. For the year ended August 31, 2009, the Fund had an affiliate fund ownership concentration of 83.7% of the Fund’s net assets.

Note 2

Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end and through the date that the financial statements were issued, October 23, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security valuation

Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. Securities held by the Fund are valued at the last sale price or official closing price (closing bid price or last evaluated price if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer supplied and electronic data processing

Annual report | Optimized Value Fund     23

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. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Certain securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Equity and debt obligations, for which there are no prices available from an independent pricing service, are valued based on broker quotes or fair valued, as described below. Certain short-term debt instruments are valued at amortized cost. John Hancock Collateral Investment Trust (JHCIT), an affili-ated registered investment company managed by Manulife Global Investment Management (U.S.), LLC, a subsidiary of Manulife Financial Corporation (MFC), is valued at its net asset value each business day. JHCIT is a floating rate fund investing in money market instruments.

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 Fund’s Pricing Committee in accordance with procedures adopted by the Board of Trustees. Generally, trading in non-U.S. securities is substantially completed each day at various times prior to the close of trading on the NYSE. 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.

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 and market conditions, interest rates, investor perceptions and market liquidity.

Fair value measurements

The Fund uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

Level 1 – Exchange traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights, options and futures. In addition, investment companies, including mutual funds, are valued using this technique.

Level 2 – Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds, and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities. Also, over-the counter derivative contracts, including swaps, foreign forward currency contracts, and certain options use these techniques.

Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Fund’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may not only use observable or unobservable inputs but may also include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

24     Optimized Value Fund | Annual report

The following is a summary of the inputs used to value the Fund’s investments as of August 31, 2009, by major security category or security type.

Investments in Securities		LEVEL 1		LEVEL 2	LEVEL 3		TOTALS
Basic Materials	$	3,074,280		—	—	$	3,074,280
Communications		26,508,352		—	—		26,508,352
Consumer, Cyclical		16,422,877		—	—		16,422,877
Consumer, Non-cyclical		43,723,732		—	—		43,723,732
Energy		56,725,902		—	—		56,725,902
Financial		78,326,079		—	—		78,326,079
Industrial		37,278,140		—	—		37,278,140
Technology		16,275,702		—	—		16,275,702
Utilities		16,398,330		—	—		16,398,330
Short-term Securities		—	$	1,596,000	—		1,596,000
Total Investments in Securities	$	294,733,394	$	1,596,000	—	$	296,329,394

Security transactions and related investment income

Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is 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.

From time to time, the Fund may invest in Real Estate Investment Trusts (REITs) and, as a result, will estimate the components of distributions from these securities. Distributions from REITs received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain.

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

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 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.

Line of credit

The Fund has entered into an agreement which enables them to participate in a $300 million unsecured committed line of credit with its Custodian. The Fund is permitted to have bank borrowings for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. 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 0.08% per annum, payable at the end of each calendar quarter,

Annual report | Optimized Value Fund     25

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. Prior to February 19, 2009, the commitment fee was 0.05% per annum. For the year ended August 31, 2009, there were no borrowings under the line of credit.

Pursuant to the custodian agreement, the custodian may, in its discretion, advance funds to a 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, that is not segregated, 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 associated with 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 no less than the market value of the loaned securities.

The market value of the loaned securities is determined at the close of business of the Fund. Any additional required cash collateral is delivered to the Fund or excess collateral is returned to the borrower on the next business day. Cash collateral received is invested in JHCIT. JHCIT is not a stable value fund and thus the Fund receives the benefit of any gains and bears any losses generated by JHCIT.

The Fund may receive compensation for lending their securities either in the form of fees, and/or by retaining a portion of interest on the investment of any cash received as collateral. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. The Fund bears the risk in the event that invested collateral is not sufficient to meet obligations due on loans.

Expenses

The majority of expenses are directly identifi-able to the 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 in the Trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations

Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the appropriate net asset value of the respective classes. Distribution and service fees, if any, transfer agent fees, state registration fees and printing and postage fees for Class A, Class B, Class C and Class I shares 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.

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.

26     Optimized Value Fund | Annual report

The Fund may be subject to capital gains and repatriation taxes imposed by certain countries in which it invests. Such taxes are generally based upon income and/or capital gains earned or repatriated. Taxes are accrued based upon net investment income, net realized gains and net unrealized appreciation.

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 $223,009,627 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, it will reduce the amount of capital gain distribution to be paid. The loss carryforward expires as follows: August 31, 2016 — $6,372,104 and August 31, 2017 — $216,637,523.

Net capital losses of $164,174,266 that are attributable to security transactions incurred after October 31, 2008, are treated as arising on September 1, 2009, the first day of the Fund’s next taxable year.

As of August 31, 2009, the Fund had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Fund’s federal tax returns filed in the 3-year period ended August 31, 2009 remains subject to examination by the Internal Revenue Service.

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 and pays dividends and capital gains distributions, if any, annually. Distributions paid by the Fund with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each class. During the year ended August 31, 2009, the tax character of distributions paid was as follows: ordinary income $12,717,195. 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.

As of August 31, 2009, the components of distributable earnings on a tax basis included $4,425,782 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. Permanent book/tax differences are primarily attributable to partnerships.

Note 3

Financial instruments

The Fund has adopted the provisions of Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (FAS 161). This new standard requires the Fund to disclose information to assist investors in understanding how the Fund uses derivative instruments, how derivative instruments are accounted for under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (FAS 133) and how derivative instruments affect the Fund’s financial position, results of operations and cash flows. The disclosure for the year ended August 31, 2009 is presented in accordance with FAS 161.

Futures

The Fund may purchase and sell financial futures contracts, including index futures and

Annual report | Optimized Value Fund     27

options on these contracts. A future is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. The Fund uses futures contracts to manage against a decline in the value of securities owned by the Fund due to anticipated interest rate, currency or market changes. In addition, the Fund will use futures contracts for duration management or to gain exposure to a securities market.

An index futures contract (index future) is a contract to buy a certain number of units of the relevant index at a fixed price and specific future date. The Fund may invest in index futures as a means of gaining exposure to securities without investing in them directly, thereby allowing the Fund to invest in the underlying securities over time. Investing in index futures also permits the Fund to maintain exposure to common stocks without incurring the brokerage costs associated with investment in individual common stocks.

When the Fund sells a futures contract based on a financial instrument, the Fund becomes obligated to deliver such instrument at an agreed upon date for a specified price. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Fund and the prices of futures contracts, the possibility of an illiquid market and the inability of the counterparty to meet the terms of the contract.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. Upon entering into a futures contract, initial margin deposits, as set by the exchange or broker to the contract, are required and are met by the delivery of specific securities (or cash) as collateral to the broker. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of assets and liabilities. The Fund had no open financial futures contracts on August 31, 2009.

During the year ended August 31, 2009, the Fund used futures to hedge against anticipated changes in the securities market.

During the year ended August 31, 2009, the Fund held futures contracts that ranged from approximately $16 million to $110 million (notional value). These contracts were settled during the 1st quarter of fiscal year 2009.

Effect of derivative instruments on the Statement of Operations

The table below summarizes the realized gain (loss) recognized in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category for the year ended August 31, 2009:

DERIVATIVES NOT ACCOUNTED FOR AS HEDGING
INSTRUMENTS UNDER FAS 133		FUTURES			TOTAL
Statement of Operations location —		Financial futures
Net realized gain (loss) on		contracts
Equity contracts	$	(2,219,901	)	$	(2,219,901	)

Note 4

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.

28     Optimized Value Fund | Annual report

Note 5

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 and affiliate of the Fund.

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 subadvi-sory fees. The effective rate for the year ended August 31, 2009, is 0.68% of the Fund’s average daily net asset value.

The Adviser has agreed contractually to reimburse for certain fund level expenses that exceed 0.80% 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, fund 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 and 0.85% for Class 1. Accordingly, the expense reductions related to this expense limitation amounted to $17,555, $14,762, $14,894 and $16,915 for Class A, Class B, Class C and Class I, respectively, for the year ended August 31, 2009. This expense reimbursement shall continue in effect until December 31, 2009 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 shareholder 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 accounting and legal services fees incurred for the year ended August 31, 2009, were equivalent to an annual effective rate of 0.02% 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, 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 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, 2009 the Distributor received net up-front sales charges of $2,838 with regard to sales of Class A shares. Of this amount, $509 was retained and used for printing prospectuses,

Annual report | Optimized Value Fund     29

advertising, sales literature and other purposes and $2,329 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 and Class C shares. During the year ended August 31, 2009, there were no CDSCs received by Distributor for Class B shares and for Class C shares.

The Fund has a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. The transfer agent fees are made up of three components:

• The Fund pays a monthly transfer agent fee at an annual rate of 0.05% for Classes A, B and C and 0.04% for Class I based on each class’s average daily net assets for all classes. Additionally, Class NAV does not pay transfer agent fees;

• a monthly fee based on an annual rate of $16.50 per shareholder account except Class NAV; and

• Signature Services is reimbursed for certain out-of-pocket expenses.

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 and Class I shares average daily net assets. This agreement was effective until December 31, 2008, after which it expired. Waivers and reimbursement under this plan were $121, $81, $65 and $74 for Classes A, B, C and I, respectively, for the year ended August 31, 2009.

The Fund receives earnings credits from Signature Services 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, 2009, the Fund had no transfer agent credits.

Effective January 1, 2009, the Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursement or waivers occurred. For the year ended August 31, 2009, the adviser did not recapture any reimbursements. The amount of waived or reimbursed expenses subject to potential recovery that expire in 2012 is $53,437.

Class level expenses including the allocation of the transfer agent fees for the year ended August 31, 2009, were as follows:

						State
		Distribution and		Transfer		registration		Printing and
Share class		service fees		agent fees		fees		postage fees
Class A	$	366	$	977	$	14,310	$	2,696
Class B		402		628		14,310		7
Class C		98		665		14,310		6
Class I		—		553		16,283		161
Class 1		22,527		—		—		—
Total	$	23,393	$	2,823	$	59,213	$	2,870

30     Optimized Value Fund | Annual report

Note 6

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 7

Fund share transactions

This listing illustrates the number of Fund shares sold, reinvested and repurchased during the years ended August 31, 2009, and the year ended August 31, 2008, along with the corresponding dollar value.

	Year ended 8-31-09					Year ended 8-31-081
	Shares			Amount			Shares			Amount
Class A shares
Sold	30,249		$	258,570			4,216		$	55,914
Distributions reinvested	180			1,531			—			—
Repurchased	(3,311	)		(32,469	)		(461	)		(5,651	)
Net increase	27,118		$	227,632			3,755		$	50,263
Class B shares
Sold	12,847		$	111,675			787		$	11,485
Distributions reinvested	38			328			—			—
Repurchased	(3,663	)		(31,336	)		—			—
Net increase	9,222		$	80,667			787		$	11,485
Class C shares
Sold	982		$	6,930			668		$	10,000
Distributions reinvested	13			108			—			—
Net increase	995		$	7,038			668		$	10,000
Class I shares
Sold	—			—			668		$	10,000
Distributions reinvested	21			180			—			—
Net increase	21		$	180			668		$	10,000
Class 1 shares
Sold	266,435		$	2,272,763			123,246		$	1,790,160
Distributions reinvested	169,404			1,443,321			560,206			8,509,531
Repurchased	(850,844	)		(7,481,138	)		(1,357,703	)		(19,836,628	)
Net decrease	(415,005	)	$	(3,765,054	)		(674,251	)	$	(9,536,937	)
Class NAV shares
Sold	3,048,614		$	23,996,954			10,453,910		$	159,592,299
Distributions reinvested	1,321,422			11,271,727			4,288,507			65,142,428
Repurchased	(32,364,754	)		(288,588,326	)		(13,570	)		(190,473	)
Net increase (decrease)	(27,994,718	)	$	(253,319,645	)		14,728,847		$	224,544,254
Net increase (decrease)	(28,372,367	)	$	(256,769,182	)		14,060,474		$	215,089,065

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

On September 24, 2009, the Board of Trustees
of the Fund approved the liquidation of
Classes A, B, C and I. The liquidation is
expected to occur in December 2009.

Annual report | Optimized Value Fund     31

Note 8

Purchases and sales of securities

Purchases and proceeds from sales or maturities of securities, other than short-term securities, during the year ended August 31, 2009, aggregated $588,329,791 and $849,579,993, respectively.

32     Optimized Value Fund | Annual report

Auditors’ report

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of John Hancock Funds II and Shareholders of John Hancock Optimized Value Fund:

In our opinion, the accompanying statement of assets and liabilities, including the schedule 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 John Hancock Optimized Value Fund (the “Fund”) at August 31, 2009, and the results of its operations, the changes in its 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 Fund’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, 2009 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased confirmations had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 23, 2009

Annual report | Optimized Value Fund     33

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, 2009.

With respect to the ordinary dividends paid by the Fund for the year ended August 31, 2009, 98.70% 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 2009.

Shareholders will be mailed a 2009 U.S. Treasury Department Form 1099-DIV in January 2010. This will reflect the total of all distributions that are taxable for calendar year 2009.

34     Optimized Value Fund | Annual report

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 the Subadvisory Agreement (the Subadvisory Agreement) for the Fund, a series of John Hancock Funds II (the Trust).

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 28–29, 2009, 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

Annual report | Optimized Value Fund     35

	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 sub-advisory 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,
	(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
	(e)	considered that the Adviser should be entitled to earn a reasonable level of profits in exchange for the level of services it provide 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’ anticipated level of profit-ability 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

36     Optimized Value Fund | Annual report

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.

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 28–29, 2009, 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-sub-advisory 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 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 sub-advisers 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.

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

Annual report | Optimized Value Fund     37

Appendix A
Portfolio	Performance of Trust
(Subadviser)	as of March 31, 2009	Fees and Expenses	Other Comments
Optimized Value Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund slightly underperformed the benchmark index over the one-year period and modestly under- performed over the three-year period. The Fund slightly underperformed the Morningstar Category Average over the one-, and three-year periods	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 current market conditions. The Board also noted that prior to 2007 and 2008, the Fund performed very well in the 2005–2006 time period. The Board noted that performance has improved year-to-date. The Board requested that management continue to closely monitor performance.

38     Optimized Value Fund | Annual report

Trustees and Officers

This chart provides information about the Trustees and Officers of John Hancock Funds II 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, Year of Birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
Charles L. Bardelis, Born: 1941	2005	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, 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).

Theron S. Hoffman,²Born: 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, 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, Born: 1946 2005 212

Chairman of the Board of John Hancock Funds II; 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 (since 1995); and Connecticut River Bancorp, Director (since 1998); Virtus Investment Management (since 2009); and Emerson Investment Management (since 2000). Trustee of John Hancock Trust (since 2004) and former Trustee of John Hancock Funds III (2005–2006).

Annual report | Optimized Value Fund      39

Independent Trustees (continued)
Name, Year of Birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1	by Trustee
Steven M. Roberts,2Born: 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).

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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust.

2

Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

Trustee Emeritus
Name, Year of Birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since	by Trustee
John D. Richardson,1Born: 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 Mr. Richardson became a non-voting Trustee Emeritus on December 14, 2006.

Non-Independent Trustees^1,2

Name, Year of Birth		Number of
Position(s) held with Fund	Trustee	John Hancock
Principal occupation(s) and other	of Fund	funds overseen
directorships during past 5 years	since1,2	by Trustee
James R. Boyle,3 Born: 1959	2005	264

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,^4,5Born: 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).

40     Optimized Value Fund | Annual report

1	Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
2	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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust 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 position with Manulife Financial Corporation (or its affiliates), the ultimate 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	Officer
Principal occupation(s) and other	of Fund
directorships during past 5 years	since
Hugh McHaffie, Born: 1959	2009

President
Executive Vice President, John Hancock Wealth Management (since 2006, including prior positions); Senior Vice President, Individual Business Product Management, MetLife, Inc. (1999–2006); Vice President, Annuity Product Management, John Hancock Life Insurance Company (1990–1999).

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).

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).

Annual report | Optimized Value Fund      41

Principal officers who are not Trustees (continued)
Name, Year of Birth
Position(s) held with Fund	Officer
Principal occupation(s) and other	of Fund
directorships during past 5 years	since
Michael J. Leary, Born: 1965	2007

Treasurer
Vice President, John Hancock Life Insurance Company (U.S.A.) and Treasurer for John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since May 2009); Assistant Treasurer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2007–2009); Vice President and Director of Fund Administration, JP Morgan (2004–2007); Vice President and Senior Manager of Fund Administration, JP Morgan (1993–2004); Manager, Ernst & Young, LLC (1988–1993).

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).

John G. Vrysen, Born: 1955 2007

Chief Operating Officer (since 2005)
Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group, John Hancock Investment Management Services, LLC and John Hancock Funds, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, the Adviser, The Berkeley Group, Manulife Financial Corporation Global Investment Management (U.S.), LLC, John Hancock Investment Management Services, LLC, John Hancock Funds, LLC, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005–2007); Vice President, Manulife Financial Corporation (until 2006).

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.

42     Optimized Value Fund | Annual report

More information

Trustees

James M. Oates,** Chairman

James R. Boyle†

Grace K. Fey**†

Charles L. Bardelis*

Peter S. Burgess*

Theron S. Hoffman**

Hassell H. McClellan**

Steven M. Roberts*

John D. Richardson, Trustee Emeritus

 *Member of the Audit Committee

**Member of the Compliance Committee

 †Non-Independent Trustee

Officers

Hugh McHaffie

President

Thomas M. Kinzler

Secretary and Chief Legal Officer

Francis V. Knox, Jr.

Chief Compliance Officer

Michael J. Leary

Treasurer

Charles A. Rizzo

Chief Financial Officer

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 and Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

Independent registered

public accounting firm

PricewaterhouseCoopers LLP

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

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

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

You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 9510	Mutual Fund Image Operations
	Portsmouth, NH 03802-9510	164 Corporate Drive
		Portsmouth, NH 03801

Annual report | Optimized Value Fund      43

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.

It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus.

John Hancock
Lifecycle 2045 Portfolio

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	43	%
U.S. Mid Cap	12	%
U.S. Small Cap	7	%
Emerging Markets	6	%
International Large Cap	16	%
International Small Cap	3	%
Large Blend	3	%
Natural Resources	3	%
Small Growth	1	%
Small Value	1	%

Fixed Income	% of Total
High Yield Bond	1	%
Intermediate Bond	1	%
U.S. Government &Agency	1	%
Multi-Sector Bond	1	%
Bank Loan	1	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2045 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –16.60%, –16.72%, –16.58%, –16.35%, –16.12% and –16.06%, respectively, at net asset value. In comparison, the Portfolio’s benchmark index, the Standard & Poor’s 500 Index, returned –18.25% over the same period and the average target-date 2041–2045 portfolio returned –16.01%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it outperformed its benchmark S&P 500 Index. This outperformance was due to allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. Conversely, allocations to global natural resources, U.S. mid-cap equities and U.S. small-cap equities hampered relative performance.

Within equity asset classes, manager selections proved fruitful. In particular, we experienced strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, benefiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors. On the negative side, the Large Cap Value Fund (BlackRock) and the Mid Cap Stock Fund (Wellington) detracted from results as both lagged their respective benchmarks. Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008, also underperformed its benchmark.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its own opinions. As such, they are in no way guarantees of future events and are not intended to be used as investment advice or a recommendation regarding any specific security. They are also subject to change at any time as market and other conditions warrant.

4     Lifecycle 2045 Portfolio | 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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,273	$8,297	$8,365	$8,434	$8,441
Index2	7,900	7,900	7,900	7,900	7,900

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A	Class R11	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
Average annual returns — 1 year	–20.74%	–16.72%	–16.58%	–16.35%	–16.12%	–16.06%
Average annual returns — Since inception	–7.92%	–6.45%	–6.35%	–6.08%	–5.81%	–5.79%
Cumulative total returns — 1 year	–20.74%	–16.72%	–16.58%	–16.35%	–16.12%	–16.06%
Cumulative total returns — Since inception	–20.92%	–17.27%	–17.03%	–16.35%	–15.66%	–15.59%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. 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 R1 — 1.56%, Class R3 — 1.46%, Class R4 — 1.21%, Class R5 — 0.91%, Class 1 — 0.96%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.37%, Class R1 — 13.23%, Class R3 — 11.24%, Class R4 — 14.91%, Class R5 — 12.78%, Class 1 — 1.00%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
2	S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Annual report | Lifecycle 2045 Portfolio     5

John Hancock
Lifecycle 2040 Portfolio

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	43	%
U.S. Mid Cap	12	%
U.S. Small Cap	7	%
Emerging Markets	6	%
International Large Cap	16	%
International Small Cap	3	%
Large Blend	3	%
Natural Resources	3	%
Small Growth	1	%
Small Value	1	%

Fixed Income	% of Total
High Yield Bond	1	%
Intermediate Bond	1	%
U.S. Government & Agency	1	%
Bank Loan	1	%
Multi-Sector Bond	1	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2040 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –16.33%, –16.54%, –16.52%, –16.28%, –16.05% and –16.09%, respectively, at net asset value. In comparison, the Portfolio’s benchmark index, the Standard & Poor’s 500 Index, returned –18.25% and the average target-date 2036–2040 portfolio returned –15.62%, according to Morningstar, Inc. over the same period.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it outperformed its benchmark S&P 500 Index. This outperformance was due to allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. Conversely, allocations to global natural resources, U.S. mid-cap equities and U.S. small-cap equities hampered relative performance.

Among equity asset classes, our manager selections proved fruitful. In particular, we experienced strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, benefiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors. On the negative side, the Large Cap Value Fund (BlackRock) and the Mid Cap Stock Fund (Wellington) both detracted from performance as they lagged their respective benchmarks. Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008, also underperformed its benchmark index.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,292	$8,295	$8,374	$8,442	$8,439
Index2	7,900	7,900	7,900	7,900	7,900

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–20.49	%	–16.54	%	–16.52	%	–16.28	%	–16.05	%	–16.09	%
Average annual returns — Since inception	–7.85	%	–6.38	%	–6.36	%	–6.05	%	–5.78	%	–5.79	%
Cumulative total returns — 1 year	–20.49	%	–16.54	%	–16.52	%	–16.28	%	–16.05	%	–16.09	%
Cumulative total returns — Since inception	–20.73	%	–17.08	%	–17.05	%	–16.26	%	–15.58	%	–15.61	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. 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 R1 — 1.56%, Class R3 — 1.46%, Class R4 — 1.21%, Class R5 — 0.91%, Class 1 — 0.96%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.91%, Class R1 — 10.24%, Class R3 — 6.24%, Class R4 — 12.44%, Class R5 — 8.71%, Class 1 — 0.98%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
2	S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Annual report | Lifecycle 2040 Portfolio     7

John Hancock
Lifecycle 2035 Portfolio Aggressive Portfolio

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	43	%
U.S. Mid Cap	12	%
U.S. Small Cap	7	%
Emerging Markets	6	%
International Large Cap	16	%
International Small Cap	3	%
Large Blend	3	%
Natural Resources	3	%
Small Growth	1	%
Small Value	1	%
Fixed Income	% of Total
High Yield Bond	1	%
Intermediate Bond	1	%
U.S. Government & Agency	1	%
Multi-Sector Bond	1	%
Bank Loan	1	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2035 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –16.39%, –16.50%, –16.47%, –16.24%, –16.01% and –16.02%, respectively, at net asset value. In comparison, the Portfolio’s benchmark index, the Standard & Poor’s 500 Index, returned –18.25% and the average target-date 2031–2035 portfolio returned –15.17%, according to Morningstar, Inc. over the same period.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it outperformed its benchmark S&P 500 Index. This outperformance was due to allocations to emerging-market equities, international large-cap equities, and international small-cap equities, all of which outperformed the S&P 500 Index. Conversely, allocations to global natural resources, U.S. mid-cap equities and U.S. small-cap equities hampered relative performance.

Among equity asset classes, our manager selections proved fruitful. In particular, we experienced strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, benefiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors. On the negative side, the Large Cap Value Fund (BlackRock) and the Mid Cap Stock Fund (Wellington) detracted from performance as both lagged their respective benchmarks. Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008, also underperformed its benchmark index.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,289	$8,302	$8,371	$8,440	$8,448
Index2	7,900	7,900	7,900	7,900	7,900

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–20.60	%	–16.50	%	–16.47	%	–16.24	%	–16.01	%	–16.02	%
Average annual returns — Since inception	–7.89	%	–6.39	%	–6.33	%	–6.06	%	–5.79	%	–5.76	%
Cumulative total returns — 1 year	–20.60	%	–16.50	%	–16.47	%	–16.24	%	–16.01	%	–16.02	%
Cumulative total returns — Since inception	–20.85	%	–17.11	%	–16.98	%	–16.29	%	–15.60	%	–15.52	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. 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 R1 — 1.56%, Class R3 — 1.51%, Class R4 — 1.21%, Class R5 — 0.91%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.56%, Class R1 — 11.16%, Class R3 — 10.70%, Class R4 — 11.78%, Class R5 — 11.83%. The net expenses equal the gross expenses and are as follows: Class 1 — 0.95%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
2	S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

Annual report | Lifecycle 2035 Portfolio     9

John Hancock
Lifecycle 2030 Portfolio

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	7	%
Emerging Markets	6	%
International Large Cap	15	%
International Small Cap	3	%
Large Blend	3	%
Natural Resources	3	%
Real Estate	1	%
Small Growth	1	%
Small Value	1	%

Fixed Income	% of Total
Intermediate Bond	2	%
High Yield Bond	1	%
U.S. Government & Agency	1	%
Bank Loan	1	%
Multi-Sector Bond	1	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2030 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –16.36%, –16.52%, –16.38%, –16.08%, –15.88% and –15.90%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –18.25%, the Barclays Capital U.S. Aggregate Bond Index returned 7.94% and the Fund’s blended benchmark — 90% S&P 500 Index/10% Barclays Capital U.S. Aggregate Bond Index — returned –15.62% over the same period. At the same time, the average target-date 2026–2030 portfolio returned –13.97%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it benefited from allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. Conversely, global natural resources, U.S. mid-cap equities and U.S. small-cap equities hampered relative performance.

Among equity asset classes, our manager selections detracted from results as several equity funds underperformed their respective benchmark indexes. Among the laggards were the Large Cap Value Fund (BlackRock), the Mid Cap Stock Fund (Wellington) and the Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008.

In contrast, we experienced strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, benefiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,253	$8,277	$8,349	$8,412	$8,411
Index2,3	8,264	8,264	8,264	8,264	8,264

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–20.51	%	–16.52	%	–16.38	%	–16.08	%	–15.88	%	–15.90	%
Average annual returns — Since inception	–7.94	%	–6.53	%	–6.43	%	–6.15	%	–5.90	%	–5.90	%
Cumulative total returns — 1 year	–20.51	%	–16.52	%	–16.38	%	–16.08	%	–15.88	%	–15.90	%
Cumulative total returns — Since inception	–20.96	%	–17.47	%	–17.23	%	–16.51	%	–15.88	%	–15.89	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. 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 R1 — 1.56%, Class R3 — 1.51%, Class R4 — 1.21%, Class R5 — 0.91%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.09%, Class R1 — 9.16%, Class R3 — 5.00%, Class R4 — 15.59%, Class R5 — 6.94%. The net expenses equal the gross expenses and are as follows: Class 1 — 0.94%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
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 Barclays Capital U.S. Aggregate Bond 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

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	42	%
U.S. Mid Cap	11	%
U.S. Small Cap	6	%
Emerging Markets	6	%
International Large Cap	13	%
Large Blend	3	%
Natural Resources	2	%
International Small Cap	2	%
Real Estate	1	%
Small Growth	1	%
Small Value	1	%

Fixed Income	% of Total
High Yield Bond	3	%
U.S. Government & Agency	2	%
Intermediate Bond	2	%
Bank Loan	2	%
Multi-Sector Bond	2	%
Global Bond	1	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2025 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –14.74%, –15.01%, –14.87%, –14.68%, –14.38% and –14.37%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –18.25%, the Barclays Capital U.S. Aggregate Bond Index returned 7.94% and the Portfolio’s blended benchmark — 90% S&P 500 Index/10% Barclays Capital U.S. Aggregate Bond Index — returned –15.62% over the same period. At the same time, the average target-date 2021–2025 portfolio returned –13.36%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it outperformed its blended benchmark index. This outperformance was due to allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. The Portfolio’s fixed-income assets also helped performance, as fixed-income securities overall posted positive results for the year.

Conversely, allocations to real estate (both global and U.S.), global natural resources, U.S. mid-cap equities and U.S. small-cap equities hampered relative performance. Our allocation to high-yield bonds also hurt our Portfolio’s fixed-income results. While high-yield bonds rallied significantly in 2009, it was not enough to overcome the severe damage caused in the latter half of 2008. On a positive note, we added a position in floating-rate loans in February 2009. Because spreads were at exceptionally attractive levels at that time, this allocation positively contributed to relative performance.

Manager selection detracted from performance in both the equity and fixed-income segments, as several of the funds underperformed their respective benchmarks. Among the equity laggards were the Large Cap Value Fund (BlackRock), the Mid Cap Stock Fund (Wellington) and the Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008. Within fixed income, the High Income Fund (MFC Global U.S.) and the High Yield Fund (WAMCO) weighed on fixed-income results.

Conversely, we experienced a strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, benefiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,395	$8,419	$8,482	$8,555	$8,566
Index2,3	8,264	8,264	8,264	8,264	8,264

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–18.97	%	–15.01	%	–14.87	%	–14.68	%	–14.38	%	–14.37	%
Average annual returns — Since inception	–7.34	%	–5.96	%	–5.87	%	–5.63	%	–5.34	%	–5.30	%
Cumulative total returns — 1 year	–18.97	%	–15.01	%	–14.87	%	–14.68	%	–14.38	%	–14.37	%
Cumulative total returns — Since inception	–19.49	%	–16.05	%	–15.81	%	–15.18	%	–14.45	%	–14.34	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.36%, Class R1 — 1.54%, Class R3 — 1.49%, Class R4 — 1.19%, Class R5 — 0.89%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.23%, Class R1 — 9.11%, Class R3 — 6.11%, Class R4 — 12.50%, Class R5 — 8.61%. The net expenses equal the gross expenses and are as follows: Class 1 — 0.93%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
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 Barclays Capital U.S. Aggregate Bond 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

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	44	%
U.S. Mid Cap	9	%
U.S. Small Cap	3	%
Emerging Markets	5	%
International Large Cap	10	%
International Small Cap	1	%
Large Blend	3	%
Natural Resources	2	%
Real Estate	2	%

Fixed Income	% of Total
High Yield Bond	6	%
U.S. Government & Agency	4	%
Intermediate Bond	4	%
Bank Loan	3	%
Multi-Sector Bond	3	%
Global Bond	1	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2020 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –12.75%, –13.00%, –12.97%, –12.68%, –12.38% and –12.38%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –18.25%, the Barclays Capital U.S. Aggregate Bond Index returned 7.94% and the Portfolio’s blended benchmark — 80% S&P 500 Index/20% Barclays Capital U.S. Aggregate Bond Index — returned –13.01% over the same period. At the same time, the average target-date 2016–2020 portfolio returned –10.42%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it outperformed its blended benchmark index. This outperformance was due to allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. The Portfolio’s fixed-income assets also helped performance, as fixed-income securities overall posted positive results for the year.

Conversely, allocations to U.S. real estate, global natural resources, U.S. mid-cap equities and U.S. small-cap equities hampered relative performance. Our allocation to high-yield bonds also detracted from the Portfolio’s fixed-income results. While high-yield bonds rallied significantly in 2009, it was not enough to overcome the severe damage caused in the latter half of 2008. On a positive note, we increased our position in floating-rate loans in February 2009. Because spreads were at exceptionally attractive levels at that time, this allocation positively contributed to relative performance.

Manager selection detracted from performance in both the equity and fixed-income segments as several of the funds underperformed their respective benchmark indexes. Among the equity laggards were the Large Cap Value Fund (BlackRock), the Mid Cap Stock Fund (Wellington) and the Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008. On the fixed-income side, the High Income Fund (MFC Global U.S.) and the High Yield Fund (WAMCO) weighed on fixed-income results as they both lagged the Merrill Lynch High Yield Master II Index.

In contrast, we experienced strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, ben-efiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors. Within fixed income, the Total Return Fund (PIMCO) positively contributed to relative performance due to its yield curve positioning and exposure to agency bonds.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,668	$8,682	$8,756	$8,830	$8,841
Index2,3	8,640	8,640	8,640	8,640	8,640

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–17.13	%	–13.00	%	–12.97	%	–12.68	%	–12.38	%	–12.38	%
Average annual returns — Since inception	–6.34	%	–4.90	%	–4.85	%	–4.57	%	–4.28	%	–4.24	%
Cumulative total returns — 1 year	–17.13	%	–13.00	%	–12.97	%	–12.68	%	–12.38	%	–12.38	%
Cumulative total returns — Since inception	–16.99	%	–13.32	%	–13.18	%	–12.44	%	–11.70	%	–11.59	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.34%, Class R1 — 1.52%, Class R3 — 1.47%, Class R4 — 1.17%, Class R5 — 0.87%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.87%, Class R1 — 10.43%, Class R3 — 4.69%, Class R4 — 14.59%, Class R5 — 7.18%. The net expenses equal the gross expenses and are as follows: Class 1 — 0.89%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluc-tuate 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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
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 Barclays Capital U.S. Aggregate Bond 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

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	6	%
U.S. Small Cap	3	%
Emerging Markets	4	%
International Large Cap	8	%
Large Blend	3	%
Real Estate	2	%
Natural Resources	2	%
International Small Cap	1	%

Fixed Income	% of Total
High Yield Bond	9	%
Intermediate Bond	8	%
Multi-Sector Bond	6	%
U.S. Government & Agency	4	%
Bank Loan	4	%
Global Bond	2	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2015 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –10.91%, –11.15%, –11.12%, –10.83%, –10.53% and –10.54%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –18.25%, the Barclays Capital U.S. Aggregate Bond Index returned 7.94% and the Portfolio’s blended benchmark —70% S&P 500 Index/30% Barclays Capital U.S. Bond Aggregate Index — returned –10.38% over the same period. At the same time, the average target-date 2011–2015 portfolio returned –9.83%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, the Portfolio’s performance was helped by allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. The Portfolio’s fixed-income assets also helped performance, as fixed-income securities overall posted positive returns for the year.

Conversely, allocations to real estate (both global and U.S.), global natural resources and U.S. mid-cap equities hampered relative performance. In fixed income, our allocation to high-yield bonds detracted from fixed-income results. While high-yield bonds rallied significantly in 2009, it was not enough to overcome the severe damage caused in the latter half of 2008. On a positive note, we increased our position in floating-rate loans in February 2009. Because spreads were at exceptionally attractive levels at that time, this allocation positively contributed to relative performance.

Manager selection detracted from performance in both equities and fixed income, as several funds underperformed their respective benchmarks. Among the equity laggards were the Large Cap Value Fund (BlackRock), the Mid Cap Stock Fund (Wellington) and the Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008. In fixed-income, the High Income Fund (MFC Global U.S.) and the High Yield Fund (WAMCO) weighed on fixed-income results as they both lagged the Merrill Lynch High Yield Master II Index.

In contrast we experienced strong positive contribution from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, benefiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors. Within fixed-income, the Total Return Fund (PIMCO) positively contributed to relative performance due to its yield curve positioning and exposure to agency bonds. Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$8,891	$8,904	$8,980	$9,055	$9,065
Index2,3	9,025	9,025	9,025	9,025	9,025

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–15.37	%	–11.15	%	–11.12	%	–10.83	%	–10.53	%	–10.54	%
Average annual returns — Since inception	–5.50	%	–4.05	%	–4.00	%	–3.71	%	–3.43	%	–3.39	%
Cumulative total returns — 1 year	–15.37	%	–11.15	%	–11.12	%	–10.83	%	–10.53	%	–10.54	%
Cumulative total returns — Since inception	–14.87	%	–11.09	%	–10.96	%	–10.20	%	–9.45	%	–9.35	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.36%, Class R1 — 1.53%, Class R3 — 1.48%, Class R4 — 1.18%, Class R5 — 0.88%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.16%, Class R1 — 9.57%, Class R3 — 6.93%, Class R4 — 13.37%, Class R5 — 5.82%. The net expenses equal the gross expenses and are as follows: Class 1 — 0.91%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements. The returns reflect past results and should not be considered indicative of future performance.
	The return and principal value of an investment will fluc-tuate 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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
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 Barclays Capital U.S. Aggregate Bond 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

Recently, Class R shares converted to Class R1 shares and Classes B, C, and R2 shares converted to Class A shares.

Goal and strategy

To seek high total return until the fund’s target retirement date. Under normal market conditions, the fund invests 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	35	%
U.S. Mid Cap	3	%
U.S. Small Cap	3	%
International Large Cap	6	%
Emerging Markets	3	%
Real Estate	3	%
Natural Resources	2	%
Large Blend	1	%

Fixed Income	% of Total
Intermediate Bond	13	%
High Yield Bond	11	%
Multi-Sector Bond	9	%
Bank Loan	4	%
U.S. Government & Agency	4	%
Global Bond	3	%

As a percentage of net assets on August 31, 2009.

Portfolio results

For the 12 months ended August 31, 2009, John Hancock Lifecycle 2010 Portfolio’s Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares returned –8.53%, –8.82%, –8.69%, –8.40%, –8.11% and –8.15%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned –18.25%, the Barclays Capital U.S. Aggregate Bond Index returned 7.94% and the Portfolio’s blended benchmark — 60% S&P 500 Index/40% Barclays Capital U.S. Aggregate Bond Index — returned –7.75% over the same period. At the same time, the average target-date 2000–2010 portfolio returned –6.81%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades. However, in early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down. Bonds fared better, mostly generating positive results.

Although the Portfolio posted negative absolute results, it benefited from allocations to emerging-market equities, international large-cap equities and international small-cap equities, all of which outperformed the S&P 500 Index. The Portfolio’s fixed-income assets also helped performance, as fixed-income securities overall posted positive returns for the year.

Conversely, allocations to real estate (both global and U.S.) and global natural resources hampered relative performance. Our allocation to high-yield bonds also dampened fixed-income results. While high-yield bonds rallied significantly in 2009, it was not enough to overcome the severe damage caused in the latter half of 2008. On a positive note, we increased our position in floating-rate loans in February 2009. Because spreads were at exceptionally attractive levels at that time, this allocation positively contributed to relative performance.

Manager selection detracted from results in both equity and fixed-income categories, as some funds underperformed their respective benchmark indexes. Among the equity laggards were the Large Cap Value Fund (BlackRock) and the Core Equity Fund (Legg Mason), which was removed from the Portfolio in December 2008. In fixed income, the High Income Fund (MFC Global U.S.) and the High Yield Fund (WAMCO) weighed on fixed-income results as they both lagged the Merrill Lynch High Yield Master II Index.

In contrast, a strong positive contribution came from the Emerging Markets Value Fund (DFA), which outperformed the MSCI Emerging Markets Index due to the fund’s value bias and small-cap holdings. The Alpha Opportunities Fund (Wellington), which was added to the Portfolio in December 2008, also contributed positively, ben-efiting from skillful management of its weight in financials and effective stock picking within the energy, consumer staples and health care sectors. On the fixed-income side, the Total Return Fund (PIMCO) positively contributed to relative performance due to its yield curve positioning and exposure to agency bonds.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

1	Figures from Morningstar, Inc. include reinvested dividends and do not take into account sales charges. Actual load-adjusted performance is lower.
	Past performance is no guarantee of future results.
	This commentary reflects the views of the portfolio management team through the end of the Fund’s period discussed in this report. The team’s statements reflect its 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.

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. The table below shows the hypothetical $10,000 investment for the other classes of the Portfolio during the same period.

	Class R11	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
Ending value	$9,143	$9,167	$9,243	$9,319	$9,325
Index2,3	9,411	9,411	9,411	9,411	9,411

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	Class A		Class R11		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
Average annual returns — 1 year	–13.10	%	–8.82	%	–8.69	%	–8.40	%	–8.11	%	–8.15	%
Average annual returns — Since inception	–4.59	%	–3.10	%	–3.01	%	–2.73	%	–2.45	%	–2.43	%
Cumulative total returns — 1 year	–13.10	%	–8.82	%	–8.69	%	–8.40	%	–8.11	%	–8.15	%
Cumulative total returns — Since inception	–12.51	%	–8.57	%	–8.33	%	–7.57	%	–6.81	%	–6.75	%

	Performance figures assume all distributions are reinvested. Returns at public offering price (POP) reflect a sales charge on Class A shares of 5%. Sales charge is not applicable for Class R1, Class R3, Class R4, Class R5 and Class 1 shares.
	The expense ratios of the Portfolio, both net (including any fee waivers or expense limitations) and gross (excluding any fee waivers or expense limitations), are set forth according to the most recent publicly available prospectuses for the Portfolio and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. The waivers and expense limitations are contractual at least until December 31, 2009. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.36%, Class R1 — 1.51%, Class R3 — 1.46%, Class R4 — 1.16%, Class R5 — 0.86%, Class 1 — 0.91%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 2.32%, Class R1 — 15.63%, Class R3 — 4.66%, Class R4 — 13.09%, Class R5 — 11.01%, Class 1 — 0.92%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.
	The returns reflect past results and should not be considered indicative of future performance. The return and principal value of an investment will fluc-tuate 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 R1, Class R3, Class R4, Class R5 and Class 1 share prospectuses. Sales charge is not applicable for these classes.
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 Barclays Capital U.S. Aggregate Bond 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

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, 2009 through August 31, 2009).

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 funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs and insurance-related charges. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

20     Lifecycle Portfolios | Annual report

Shareholder expense example chart

		Beginning	Ending	Expenses Paid
		Account Value	Account Value	During Period1	Annualized
		3-1-09	8-31-09	3-1-09–8-31-09	Expense Ratio2
Lifecycle 2045 Portfolio
Class A	Actual	$1,000.00	$1,461.40	$3.85	0.62%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.16	0.62%
Class R1	Actual	1,000.00	1,459.50	4.90	0.79%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.20	4.02	0.79%
Class R3	Actual	1,000.00	1,461.40	4.33	0.70%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.70	3.57	0.70%
Class R4	Actual	1,000.00	1,465.20	2.73	0.44%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.00	2.24	0.44%
Class R5	Actual	1,000.00	1,466.20	0.87	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.50	0.71	0.14%
Class 1	Actual	1,000.00	1,466.20	1.12	0.18%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.92	0.18%
Lifecycle 2040 Portfolio
Class A	Actual	$1,000.00	$1,463.30	$3.85	0.62%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.16	0.62%
Class R1	Actual	1,000.00	1,461.40	4.90	0.79%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.20	4.02	0.79%
Class R3	Actual	1,000.00	1,462.30	4.34	0.70%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.70	3.57	0.70%
Class R4	Actual	1,000.00	1,465.20	2.73	0.44%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.00	2.24	0.44%
Class R5	Actual	1,000.00	1,466.20	0.87	0.14%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.50	0.71	0.14%
Class 1	Actual	1,000.00	1,464.30	1.12	0.18%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.92	0.18%
Lifecycle 2035 Portfolio
Class A	Actual	$1,000.00	$1,461.50	$3.85	0.62%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.16	0.62%
Class R1	Actual	1,000.00	1,461.50	4.84	0.78%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.30	3.97	0.78%
Class R3	Actual	1,000.00	1,461.50	4.53	0.73%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.50	3.72	0.73%
Class R4	Actual	1,000.00	1,465.30	2.67	0.43%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.00	2.19	0.43%
Class R5	Actual	1,000.00	1,466.30	0.81	0.13%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.60	0.66	0.13%
Class 1	Actual	1,000.00	1,466.30	1.06	0.17%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.87	0.17%

Annual report | Lifecycle Portfolios     21

Shareholder expense example chart, continued

		Beginning	Ending	Expenses Paid
		Account Value	Account Value	During Period1	Annualized
		3-1-09	8-31-09	3-1-09–8-31-09	Expense Ratio2
Lifecycle 2030 Portfolio
Class A	Actual	$1,000.00	$1,458.60	$3.78	0.61%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.11	0.61%
Class R1	Actual	1,000.00	1,457.60	4.83	0.78%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.30	3.97	0.78%
Class R3	Actual	1,000.00	1,459.50	4.53	0.73%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.50	3.72	0.73%
Class R4	Actual	1,000.00	1,461.40	2.61	0.42%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.10	2.14	0.42%
Class R5	Actual	1,000.00	1,464.20	0.81	0.13%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.60	0.66	0.13%
Class 1	Actual	1,000.00	1,462.30	0.99	0.16%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.40	0.82	0.16%
Lifecycle 2025 Portfolio
Class A	Actual	$1,000.00	$1,446.70	$3.76	0.61%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.11	0.61%
Class R1	Actual	1,000.00	1,443.80	4.80	0.78%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.30	3.97	0.78%
Class R3	Actual	1,000.00	1,445.70	4.44	0.72%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.60	3.67	0.72%
Class R4	Actual	1,000.00	1,445.70	2.59	0.42%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.10	2.14	0.42%
Class R5	Actual	1,000.00	1,450.20	0.74	0.12%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.60	0.61	0.12%
Class 1	Actual	1,000.00	1,450.20	0.99	0.16%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.40	0.82	0.16%
Lifecycle 2020 Portfolio
Class A	Actual	$1,000.00	$1,421.50	$3.72	0.61%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.11	0.61%
Class R1	Actual	1,000.00	1,420.50	4.76	0.78%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.30	3.97	0.78%
Class R3	Actual	1,000.00	1,420.50	4.39	0.72%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.60	3.67	0.72%
Class R4	Actual	1,000.00	1,422.30	2.56	0.42%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.10	2.14	0.42%
Class R5	Actual	1,000.00	1,424.00	0.73	0.12%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.60	0.61	0.12%
Class 1	Actual	1,000.00	1,424.00	0.98	0.16%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.40	0.82	0.16%

22     Lifecycle Portfolios | Annual report

Shareholder expense example chart, continued

		Beginning	Ending	Expenses Paid
		Account Value	Account Value	During Period1	Annualized
		3-1-09	8-31-09	3-1-09–8-31-09	Expense Ratio2
Lifecycle 2015 Portfolio
Class A	Actual	$1,000.00	$1,384.70	$3.73	0.62%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.10	3.16	0.62%
Class R1	Actual	1,000.00	1,383.70	4.69	0.78%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.30	3.97	0.78%
Class R3	Actual	1,000.00	1,383.70	4.39	0.73%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.50	3.72	0.73%
Class R4	Actual	1,000.00	1,385.40	2.59	0.43%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,023.00	2.19	0.43%
Class R5	Actual	1,000.00	1,387.10	0.78	0.13%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.60	0.66	0.13%
Class 1	Actual	1,000.00	1,387.10	1.02	0.17%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.30	0.87	0.17%
Lifecycle 2010 Portfolio
Class A	Actual	$1,000.00	$1,347.30	$3.73	0.63%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.00	3.21	0.63%
Class R1	Actual	1,000.00	1,346.20	4.73	0.80%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.20	4.08	0.80%
Class R3	Actual	1,000.00	1,347.80	4.44	0.75%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,021.40	3.82	0.75%
Class R4	Actual	1,000.00	1,349.40	2.66	0.45%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,022.90	2.29	0.45%
Class R5	Actual	1,000.00	1,351.00	0.89	0.15%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.40	0.77	0.15%
Class 1	Actual	1,000.00	1,351.00	1.13	0.19%
	Hypothetical (5% annualized return before expenses)	1,000.00	1,024.20	0.97	0.19%

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 365 (to reflect the one-half year period).
2	Lifecycle Portfolios’ expense ratios do not include fees and expenses indirectly incurred by the underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The range of expense ratios of the underlying funds held by the Portfolios was as follows:

	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle
	2045	2040	2035	2030	2025	2020	2015	2010
8/31/09	0.49%–1.31%	0.49%–1.31%	0.49%–1.31%	0.49%–1.31%	0.49%–1.31%	0.49%–1.25%	0.49%–1.18%	0.49%–1.09%

Annual report | Lifecycle Portfolios     23

Portfolio’s investments

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

Investment companies
Underlying Funds’ Investment Managers
AIM Capital Management, Inc.	(AIM)
American Century Management, Inc.	(American Century)
BlackRock Investment Management, LLC	(BlackRock)
(formerly Mercury Advisors)
Columbia Management Advisors, LLC	(Columbia)
Davis Advisors	(Davis)
Declaration Management/	(Declaration)
John Hancock Advisers
Deutsche Asset Management	(Deutsche)
Dimensional Fund Advisors, Inc.	(DFA)
Franklin®Templeton®	(Templeton)
Frontier Capital Management Company	(Frontier)
Grantham, Mayo, Van Otterloo & Co.	(GMO)
Jennison Associates LLC	(Jennison)
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)
Perimeter Capital Management, LLC	(Perimeter)
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 8-31-09

Issuer	Shares		Value
Investment companies 100.03%
John Hancock Funds (g) 0.74%
Small Cap Intrinsic Value (MFC Global U.S.) (f)	161,036	$	1,442,884
John Hancock Funds II (g) 97.35%
Alpha Opportunities (Wellington)	530,960		5,771,538
Blue Chip Growth (T. Rowe Price)	586,162		9,138,269
Capital Appreciation (Jennison)	978,227		8,657,308
Emerging Markets Value (DFA)	1,333,359		12,120,231
Floating Rate Income (WAMCO)	168,767		1,539,152
Fundamental Value (Davis)	547,881		6,733,462
High Yield (WAMCO)	314,196		2,501,000
Index 500 (MFC Global U.S.A.) (f)	5,937,952		45,306,577
International Equity Index (SSgA)	1,273,691		19,754,954
International Opportunities (Marsico)	305,372		3,655,308
International Small Cap (Templeton)	267,991		3,253,405
International Small Company (DFA)	455,972		3,241,958
International Value (Templeton)	292,564		3,791,631
Large Cap Value (BlackRock)	420,054		6,733,462
Mid Cap Index (MFC Global U.S.A.) (f)	529,620		7,695,385
Mid Cap Stock (Wellington)	462,834		5,771,538
Mid Cap Value Equity (RiverSource)	255,579		1,886,176
Mid Value (T. Rowe Price)	320,641		4,040,077
Natural Resources (Wellington)	306,938		5,386,769
Real Return Bond (PIMCO)	160,454		1,923,846
Small Cap Growth (Wellington)	381,105		3,193,662
Small Cap Index (MFC Global U.S.A.) (f)	428,387		4,232,462
Small Cap Value (Wellington)	153,908		1,923,846
Small Company Growth (AIM)	202,297		1,923,846
Small Company Value (T. Rowe Price)	156,331		3,078,154
Smaller Company Growth (Frontier/MFC Global U.S.A./Perimeter) (f)	185,342		1,923,846
Strategic Bond (WAMCO)	149,931		1,539,792
Total Bond Market (Declaration) (f)	203,576		2,121,259
Value & Restructuring (Columbia)	774,852		6,733,462
Value (Van Kampen)	185,699		1,442,885
Vista (American Century)	442,428		2,981,962
			189,997,222
John Hancock Funds III (g) 1.94%
International Core (GMO)	141,232		3,792,072
Total investment companies (Cost $189,004,161)		$	195,232,178
Total investments (Cost $189,004,161) 100.03%		$	195,232,178
Other assets and liabilities, net (0.03)%			(49,818	)
Total net assets 100.00%		$	195,182,360

Percentages are stated as a percent of net assets.

24     Lifecycle Portfolios | Annual report See notes to financial statements

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

Lifecycle 2040 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.03%
John Hancock Funds (g) 0.74%
Small Cap Intrinsic Value (MFC Global U.S.) (f)	168,035	$	1,505,590
John Hancock Funds II (g) 97.32%
Alpha Opportunities (Wellington)	554,035		6,022,362
Blue Chip Growth (T. Rowe Price)	611,636		9,535,407
Capital Appreciation (Jennison)	1,020,739		9,033,544
Emerging Markets Value (DFA)	1,391,305		12,646,961
Floating Rate Income (WAMCO)	176,092		1,605,963
Fundamental Value (Davis)	571,692		7,026,090
High Yield (WAMCO)	327,851		2,609,690
Index 500 (MFC Global U.S.A.) (f)	6,224,685		47,494,350
International Equity Index (SSgA)	1,342,896		20,828,309
International Opportunities (Marsico)	318,644		3,814,163
International Small Cap (Templeton)	268,182		3,255,731
International Small Company (DFA)	425,054		3,022,136
International Value (Templeton)	309,551		4,011,781
Large Cap Value (BlackRock)	438,309		7,026,089
Mid Cap Index (MFC Global U.S.A.) (f)	552,637		8,029,817
Mid Cap Stock (Wellington)	482,948		6,022,362
Mid Cap Value Equity (RiverSource)	272,465		2,010,788
Mid Value (T. Rowe Price)	337,204		4,248,768
Natural Resources (Wellington)	320,278		5,620,872
Real Return Bond (PIMCO)	167,427		2,007,454
Small Cap Growth (Wellington)	412,836		3,459,567
Small Cap Index (MFC Global U.S.A.) (f)	454,668		4,492,117
Small Cap Value (Wellington)	160,596		2,007,454
Small Company Growth (AIM)	211,089		2,007,454
Small Company Value (T. Rowe Price)	169,336		3,334,220
Smaller Company Growth (Frontier/MFC
Global U.S.A./Perimeter) (f)	193,396		2,007,454
Strategic Bond (WAMCO)	156,374		1,605,963
Total Bond Market (Declaration) (f)	212,287		2,212,032
Value & Restructuring (Columbia)	808,526		7,026,089
Value (Van Kampen)	212,812		1,653,553
Vista (American Century)	461,655		3,111,554
			198,790,094
John Hancock Funds III (g) 1.97%
International Core (GMO)	149,898		4,024,774
Total investment companies (Cost $203,121,704)		$	204,320,458
Total investments (Cost $203,121,704) 100.03%		$	204,320,458
Other assets and liabilities, net (0.03)%			(60,264	)
Total net assets 100.00%		$	204,260,194

Percentages are stated as a percent of net assets.

Lifecycle 2035 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds (g) 0.73%
Small Cap Intrinsic Value (MFC Global U.S.) (f)	230,395	$	2,064,337
John Hancock Funds II (g) 97.34%
Alpha Opportunities (Wellington)	759,646		8,257,347
Blue Chip Growth (T. Rowe Price)	838,623		13,074,133
Capital Appreciation (Jennison)	1,400,860		12,397,613
Emerging Markets Value (DFA)	1,907,638		17,340,429
Floating Rate Income (WAMCO)	241,999		2,207,030
Fundamental Value (Davis)	783,854		9,633,571
High Yield (WAMCO)	450,304		3,584,421
Index 500 (MFC Global U.S.A.) (f)	8,495,436		64,820,174
International Equity Index (SSgA)	1,839,388		28,528,908
International Opportunities (Marsico)	436,897		5,229,653
International Small Cap (Templeton)	379,097		4,602,236
International Small Company (DFA)	661,245		4,701,455
International Value (Templeton)	421,425		5,461,671
Large Cap Value (BlackRock)	600,971		9,633,571
Mid Cap Index (MFC Global U.S.A.) (f)	757,728		11,009,790
Mid Cap Stock (Wellington)	662,177		8,257,347
Mid Cap Value Equity (RiverSource)	376,351		2,777,473
Mid Value (T. Rowe Price)	463,448		5,839,439
Natural Resources (Wellington)	439,137		7,706,857
Real Return Bond (PIMCO)	229,962		2,757,247
Small Cap Growth (Wellington)	566,819		4,749,946
Small Cap Index (MFC Global U.S.A.) (f)	615,420		6,080,350
Small Cap Value (Wellington)	220,196		2,752,449
Small Company Growth (AIM)	289,427		2,752,449
Small Company Value (T. Rowe Price)	231,801		4,564,168
Smaller Company Growth (Frontier/MFC Global U.S.A./Perimeter) (f)	265,168		2,752,449
Strategic Bond (WAMCO)	214,990		2,207,947
Total Bond Market (Declaration) (f)	291,913		3,041,729
Value & Restructuring (Columbia)	1,109,900		9,645,035
Value (Van Kampen)	271,683		2,110,975
Vista (American Century)	632,982		4,266,296
			272,744,158
John Hancock Funds III (g) 1.95%
International Core (GMO)	203,350		5,459,958
Total investment companies (Cost $282,459,665)		$	280,268,453
Total investments (Cost $282,459,665) 100.02%		$	280,268,453
Other assets and liabilities, net (0.02)%			(61,746	)
Total net assets 100.00%		$	280,206,707

Percentages are stated as a percent of net assets.

See notes to financial statements Annual report | Lifecycle Portfolios     25

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

Lifecycle 2030 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds (g) 0.85%
Small Cap Intrinsic Value (MFC Global U.S.) (f)	344,858	$	3,089,924
John Hancock Funds II (g) 97.36%
Alpha Opportunities (Wellington)	982,804		10,683,079
Blue Chip Growth (T. Rowe Price)	1,084,982		16,914,875
Capital Appreciation (Jennison)	1,810,691		16,024,618
Emerging Markets Value (DFA)	2,468,038		22,434,466
Floating Rate Income (WAMCO)	394,056		3,593,794
Fundamental Value (Davis)	1,015,449		12,479,864
High Yield (WAMCO)	676,844		5,387,680
Index 500 (MFC Global U.S.A.) (f)	10,899,569		83,163,713
International Equity Index (SSgA)	2,340,689		36,304,093
International Opportunities (Marsico)	535,493		6,409,847
International Small Cap (Templeton)	449,968		5,462,617
International Small Company (DFA)	773,911		5,502,504
International Value (Templeton)	507,835		6,581,542
Large Cap Value (BlackRock)	777,517		12,463,592
Mid Cap Index (MFC Global U.S.A.) (f)	980,590		14,247,973
Mid Cap Stock (Wellington)	856,702		10,683,079
Mid Cap Value Equity (RiverSource)	484,824		3,578,001
Mid Value (T. Rowe Price)	603,049		7,598,415
Natural Resources (Wellington)	568,141		9,970,874
Real Return Bond (PIMCO)	359,478		4,310,144
Small Cap Growth (Wellington)	757,559		6,348,346
Small Cap Index (MFC Global U.S.A.) (f)	796,639		7,870,798
Small Cap Value (Wellington)	284,882		3,561,026
Small Company Growth (AIM)	374,535		3,561,824
Small Company Value (T. Rowe Price)	293,864		5,786,187
Smaller Company Growth (Frontier/MFC
Global U.S.A./Perimeter) (f)	343,066		3,561,026
Strategic Bond (WAMCO)	286,308		2,940,383
Total Bond Market (Declaration) (f)	518,545		5,403,237
Value & Restructuring (Columbia)	1,434,245		12,463,592
Value (Van Kampen)	358,322		2,784,163
Vista (American Century)	818,930		5,519,591
			353,594,943
John Hancock Funds III (g) 1.81%
International Core (GMO)	245,213		6,583,978
Total investment companies (Cost $367,660,714)		$	363,268,845
Total investments (Cost $367,660,714) 100.02%		$	363,268,845
Other assets and liabilities, net (0.02)%			(67,446	)
Total net assets 100.00%		$	363,201,399

Percentages are stated as a percent of net assets.

Lifecycle 2025 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.02%
John Hancock Funds (g) 0.77%
Small Cap Intrinsic Value (MFC Global U.S.) (f)	376,371	$	3,372,282
John Hancock Funds II (g) 98.11%
Alpha Opportunities (Wellington)	1,190,302		12,938,588
Blue Chip Growth (T. Rowe Price)	1,261,344		19,664,347
Capital Appreciation (Jennison)	2,223,642		19,679,231
Emerging Markets Value (DFA)	2,656,989		24,152,031
Floating Rate Income (WAMCO)	834,342		7,609,196
Fundamental Value (Davis)	1,228,586		15,099,322
Global Bond (PIMCO)	264,336		3,275,123
Global Real Estate (Deutsche)	442,243		2,759,594
High Income (MFC Global U.S.) (f)	689,756		4,393,745
High Yield (WAMCO)	627,831		4,997,537
Index 500 (MFC Global U.S.A.) (f)	13,339,145		101,777,676
International Equity Index (SSgA)	2,844,203		44,113,584
International Opportunities (Marsico)	420,333		5,031,386
International Small Cap (Templeton)	432,641		5,252,264
International Small Company (DFA)	735,780		5,231,395
International Value (Templeton)	416,646		5,399,739
Large Cap Value (BlackRock)	908,042		14,555,912
Mid Cap Index (MFC Global U.S.A.) (f)	1,193,203		17,337,242
Mid Cap Stock (Wellington)	867,489		10,817,593
Mid Cap Value Equity (RiverSource)	498,419		3,678,334
Mid Value (T. Rowe Price)	599,758		7,556,948
Natural Resources (Wellington)	638,943		11,213,443
Real Estate Equity (T. Rowe Price)	272,022		1,455,320
Real Return Bond (PIMCO)	869,862		10,429,642
Small Cap Growth (Wellington)	786,618		6,591,862
Small Cap Index (MFC Global U.S.A.) (f)	654,787		6,469,294
Small Cap Value (Wellington)	276,023		3,450,290
Small Company Growth (AIM)	385,482		3,665,933
Small Company Value (T. Rowe Price)	304,203		5,989,754
Smaller Company Growth (Frontier/MFC
Global U.S.A./Perimeter) (f)	353,173		3,665,933
Spectrum Income (T. Rowe Price)	369,383		3,693,832
Strategic Bond (WAMCO)	190,600		1,957,464
Strategic Income (MFC Global U.S.) (f)	200,365		1,955,558
Total Bond Market (Declaration) (f)	711,036		7,408,994
Total Return (PIMCO)	155,759		2,179,073
U.S. High Yield Bond (Wells Capital)	370,476		4,349,389
Value & Restructuring (Columbia)	1,675,019		14,555,912
Value (Van Kampen)	373,475		2,901,899
Vista (American Century)	831,858		5,606,722
			432,861,101
John Hancock Funds III (g) 1.14%
International Core (GMO)	187,997		5,047,707
Total investment companies (Cost $446,674,091)		$	441,281,090
Total investments (Cost $446,674,091) 100.02%		$	441,281,090
Other assets and liabilities, net (0.02)%			(68,621	)
Total net assets 100.00%		$	441,212,469

Percentages are stated as a percent of net assets.

26     Lifecycle Portfolios | Annual report See notes to financial statements

Lifecycle 2020 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.00%
John Hancock Funds (g) 0.60%
Small Cap Intrinsic Value (MFC Global U.S.) (f)	294,002	$	2,634,254
John Hancock Funds II (g) 98.81%
Alpha Opportunities (Wellington)	1,184,764		12,878,389
Blue Chip Growth (T. Rowe Price)	1,383,628		21,570,753
Capital Appreciation (Jennison)	2,439,212		21,587,025
Emerging Markets Value (DFA)	2,219,598		20,176,142
Floating Rate Income (WAMCO)	1,539,120		14,036,771
Fundamental Value (Davis)	1,141,568		14,029,867
Global Bond (PIMCO)	350,089		4,337,600
Global Real Estate (Deutsche)	814,386		5,081,769
High Income (MFC Global U.S.) (f)	1,125,564		7,169,841
High Yield (WAMCO)	1,220,143		9,712,338
Index 500 (MFC Global U.S.A.) (f)	13,497,787		102,988,115
International Equity Index (SSgA)	2,305,443		35,757,417
International Opportunities (Marsico)	215,178		2,575,678
International Small Cap (Templeton)	255,031		3,096,072
International Small Company (DFA)	440,536		3,132,211
International Value (Templeton)	219,474		2,844,388
Large Cap Value (BlackRock)	990,851		15,883,346
Mid Cap Index (MFC Global U.S.A.) (f)	886,331		12,878,389
Mid Cap Stock (Wellington)	774,562		9,658,791
Mid Cap Value Equity (RiverSource)	378,092		2,790,318
Mid Value (T. Rowe Price)	498,228		6,277,668
Natural Resources (Wellington)	550,358		9,658,792
Real Estate Equity (T. Rowe Price)	676,496		3,619,255
Real Return Bond (PIMCO)	1,530,069		18,345,528
Small Cap Growth (Wellington)	486,483		4,076,725
Small Cap Index (MFC Global U.S.A.) (f)	521,392		5,151,355
Small Company Value (T. Rowe Price)	125,221		2,465,609
Spectrum Income (T. Rowe Price)	647,489		6,474,892
Strategic Bond (WAMCO)	321,455		3,301,341
Strategic Income (MFC Global U.S.) (f)	331,706		3,237,446
Total Bond Market (Declaration) (f)	872,459		9,091,023
Total Return (PIMCO)	587,923		8,225,047
U.S. High Yield Bond (Wells Capital)	597,994		7,020,446
Value & Restructuring (Columbia)	1,827,773		15,883,346
Value (Van Kampen)	311,884		2,423,338
Vista (American Century)	636,913		4,292,796
			431,729,827
John Hancock Funds III (g) 0.59%
International Core (GMO)	95,995		2,577,477
Total investment companies (Cost $439,236,250)		$	436,941,558
Total investments (Cost $439,236,250) 100.00%		$	436,941,558
Other assets and liabilities, net 0.00%			(14,305	)
Total net assets 100.00%		$	436,927,253

Percentages are stated as a percent of net assets.

Lifecycle 2015 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.00%
John Hancock Funds II (g) 98.98%
Alpha Opportunities (Wellington)	857,508	$	9,321,108
Blue Chip Growth (T. Rowe Price)	723,690		11,282,324
Capital Appreciation (Jennison)	1,275,188		11,285,418
Emerging Markets Value (DFA)	1,327,483		12,066,825
Floating Rate Income (WAMCO)	1,350,995		12,321,072
Fundamental Value (Davis)	755,262		9,282,173
Global Bond (PIMCO)	454,991		5,637,342
Global Real Estate (Deutsche)	675,222		4,213,387
High Income (MFC Global U.S.) (f)	857,663		5,463,316
High Yield (WAMCO)	1,646,710		13,107,809
Index 500 (MFC Global U.S.A.) (f)	9,659,271		73,700,233
International Equity Index (SSgA)	1,008,651		15,644,174
International Opportunities (Marsico)	258,484		3,094,058
International Small Cap (Templeton)	131,806		1,600,128
International Small Company (DFA)	227,294		1,616,064
International Value (Templeton)	245,101		3,176,511
Large Cap Value (BlackRock)	482,542		7,735,144
Mid Cap Index (MFC Global U.S.A.) (f)	292,204		4,245,719
Mid Cap Stock (Wellington)	443,092		5,525,354
Mid Cap Value Equity (RiverSource)	230,587		1,701,732
Mid Value (T. Rowe Price)	288,087		3,629,895
Natural Resources (Wellington)	387,859		6,806,927
Real Estate Equity (T. Rowe Price)	537,319		2,874,654
Real Return Bond (PIMCO)	1,196,675		14,348,131
Small Cap Growth (Wellington)	264,924		2,220,060
Small Cap Index (MFC Global U.S.A.) (f)	477,582		4,718,514
Small Company Value (T. Rowe Price)	100,426		1,977,386
Spectrum Income (T. Rowe Price)	794,756		7,947,560
Strategic Bond (WAMCO)	541,871		5,565,015
Strategic Income (MFC Global U.S.) (f)	558,833		5,454,208
Total Bond Market (Declaration) (f)	1,851,170		19,289,195
Total Return (PIMCO)	424,495		5,938,691
U.S. High Yield Bond (Wells Capital)	717,668		8,425,418
Value & Restructuring (Columbia)	894,711		7,775,043
Value (Van Kampen)	197,593		1,535,301
Vista (American Century)	298,388		2,011,137
			312,537,026
John Hancock Funds III (g) 1.02%
International Core (GMO)	119,130		3,198,652
Total investment companies (Cost $319,100,304)		$	315,735,678
Total investments (Cost $319,100,304) 100.00%		$	315,735,678
Other assets and liabilities, net 0.00%			14,592
Total net assets 100.00%		$	315,750,270

Percentages are stated as a percent of net assets.

See notes to financial statements Annual report | Lifecycle Portfolios     27

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

Lifecycle 2010 Portfolio

Securities owned by the Portfolio on 8-31-09

Issuer	Shares		Value
Investment companies 100.04%
John Hancock Funds II (g) 99.48%
Alpha Opportunities (Wellington)	180,289	$	1,959,743
Blue Chip Growth (T. Rowe Price)	351,974		5,487,280
Capital Appreciation (Jennison)	620,376		5,490,324
Emerging Markets Value (DFA)	543,016		4,936,015
Floating Rate Income (WAMCO)	750,944		6,848,611
Fundamental Value (Davis)	256,528		3,152,733
Global Bond (PIMCO)	345,832		4,284,857
Global Real Estate (Deutsche)	321,289		2,004,844
High Income (MFC Global U.S.) (f)	637,219		4,059,085
High Yield (WAMCO)	892,820		7,106,846
Index 500 (MFC Global U.S.A.) (f)	4,459,808		34,028,337
International Equity Index (SSgA)	461,679		7,160,634
International Opportunities (Marsico)	76,140		911,400
International Value (Templeton)	67,309		872,323
Large Cap Value (BlackRock)	244,509		3,919,486
Mid Cap Index (MFC Global U.S.A.) (f)	307,499		4,467,955
Natural Resources (Wellington)	196,533		3,449,148
Real Estate Equity (T. Rowe Price)	329,682		1,763,797
Real Return Bond (PIMCO)	569,271		6,825,557
Small Cap Index (MFC Global U.S.A.) (f)	438,522		4,332,597
Spectrum Income (T. Rowe Price)	773,857		7,738,566
Strategic Bond (WAMCO)	307,856		3,161,677
Strategic Income (MFC Global U.S.) (f)	323,627		3,158,598
Total Bond Market (Declaration) (f)	1,679,303		17,498,340
Total Return (PIMCO)	181,138		2,534,124
U.S. High Yield Bond (Wells Capital)	565,478		6,638,711
Value & Restructuring (Columbia)	451,034		3,919,486
			157,711,074
John Hancock Funds III (g) 0.56%
International Core (GMO)	33,394		896,630
Total investment companies (Cost $160,890,366)		$	158,607,704
Total investments (Cost $160,890,366) 100.04%		$	158,607,704
Other assets and liabilities, net (0.04)%			(66,225	)
Total net assets 100.00%		$	158,541,479

	Percentages are stated as a percent of net assets.
(f)	The subadviser is an affiliate of the adviser.
(g)	The underlying fund’s subadviser is shown parenthetically.

28     Lifecycle Portfolios | Annual report See notes to financial statements

Financial statements

Statements of assets and liabilities 8-31-09

These Statements of Assets and Liabilities are the Portfolios’ balance sheets. They show the value of what each Portfolio owns, is due and owes. You’ll also find the net asset value and the maximum public offering price per share for each Portfolio. Net asset value is calculated by dividing the net assets of each class of shares by the number of outstanding shares in the class.

		Lifecycle			Lifecycle			Lifecycle
		2045 Portfolio			2040 Portfolio			2035 Portfolio
Assets
Total investments in affiliated funds, at value (Note 8)	$	195,232,178		$	204,320,458		$	280,268,453
Cash		2,204			2,307			2,302
Receivable for fund shares sold		1,536,435			902,531			1,018,765
Dividends and interest receivable		7,087			7,454			10,365
Total assets		196,777,904			205,232,750			281,299,885
Liabilities
Payable for investments purchased		1,537,652			903,362			1,023,795
Payable for fund shares repurchased		17			6,848			3,775
Payable to affiliates:
Accounting and legal services fees		—			2,649			3,665
Transfer agent fees		1,770			1,678			1,760
Trustees’ fees		1,093			1,107			1,155
Investment management fees		19			94			972
Other liabilities and accrued expenses		54,993			56,818			58,056
Total liabilities		1,595,544			972,556			1,093,178
Net assets
Capital paid-in	$	205,213,462		$	218,870,704		$	304,516,318
Undistributed net investment income		56,428			56,790			96,504
Accumulated undistributed net realized loss on investments		(16,315,547	)		(15,866,054	)		(22,214,903	)
Net unrealized appreciation (depreciation) on investments		6,228,017			1,198,754			(2,191,212	)
Net assets	$	195,182,360		$	204,260,194		$	280,206,707
Investments in affiliated funds, at cost	$	189,004,161		$	203,121,704		$	282,459,665
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	$	3,488,141		$	4,434,428		$	5,949,747
Shares outstanding		449,479			570,904			763,551
Net asset value and redemption price per share	$	7.76		$	7.77		$	7.79
Class R1: Net assets	$	616,297		$	728,315		$	646,843
Shares outstanding		79,480			93,892			83,085
Net asset value, offering price and redemption price per share	$	7.75		$	7.76		$	7.79
Class R3: Net assets	$	259,281		$	1,271,351		$	450,945
Shares outstanding		33,422			164,011			57,890
Net asset value, offering price and redemption price per share	$	7.76		$	7.75		$	7.79
Class R4: Net assets	$	324,406		$	252,552		$	182,347
Shares outstanding		41,708			32,478			23,344
Net asset value, offering price and redemption price per share	$	7.78		$	7.78		$	7.81
Class R5: Net assets	$	216,473		$	561,200		$	198,543
Shares outstanding		27,756			71,932			25,357
Net asset value, offering price and redemption price per share	$	7.80		$	7.80		$	7.83
Class 1: Net assets	$	190,277,762		$	197,012,348		$	272,778,282
Shares outstanding		24,405,253			25,275,132			34,843,815
Net asset value, offering price and redemption price per share	$	7.80		$	7.79		$	7.83
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)1	$	8.17		$	8.18		$	8.20

¹ On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

See notes to financial statements Annual report | Lifecycle Portfolios     29

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

Statements of assets and liabilities 8-31-09

Continued

		Lifecycle			Lifecycle			Lifecycle
		2030 Portfolio			2025 Portfolio			2020 Portfolio
Assets
Total investments in affiliated funds, at value (Note 8)		363,268,845			441,281,090			436,941,558
Cash		2,472			2,365			2,484
Receivable for fund shares sold		489,012			650,402			794,784
Dividends and interest receivable		16,622			35,140			64,986
Total assets		363,776,951			441,968,997			437,803,812
Liabilities
Payable for investments purchased		490,614			681,256			783,389
Payable for fund shares repurchased		14,814			—			19,920
Payable to affiliates:
Accounting and legal services fees		4,667			5,629			5,595
Transfer agent fees		2,428			2,309			2,713
Trustees’ fees		1,209			1,271			1,268
Investment management fees		472			736			765
Other liabilities and accrued expenses		61,348			65,327			62,909
Total liabilities		575,552			756,528			876,559
Net assets
Capital paid-in	$	398,475,604		$	487,941,835		$	477,976,421
Undistributed net investment income		177,163			834,691			1,694,496
Accumulated undistributed net realized loss on investments		(31,059,499	)		(42,171,056	)		(40,448,972	)
Net unrealized depreciation on investments		(4,391,869	)		(5,393,001	)		(2,294,692	)
Net assets	$	363,201,399		$	441,212,469		$	436,927,253
Investments in affiliated funds, at cost	$	367,660,714		$	446,674,091		$	439,236,250
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	$	9,350,607		$	9,419,377		$	13,067,493
Shares outstanding		1,204,312			1,196,871			1,622,082
Net asset value and redemption price per share	$	7.76		$	7.87		$	8.06
Class R1: Net assets	$	1,244,746		$	1,196,620		$	1,674,805
Shares outstanding		160,759			152,539			208,312
Net asset value, offering price and redemption price per share	$	7.74		$	7.84		$	8.04
Class R3: Net assets	$	609,401		$	1,380,563		$	895,349
Shares outstanding		78,678			175,881			111,325
Net asset value, offering price and redemption price per share	$	7.75		$	7.85		$	8.04
Class R4: Net assets	$	359,721		$	259,605		$	255,180
Shares outstanding		46,384			33,056			31,694
Net asset value, offering price and redemption price per share	$	7.76		$	7.85		$	8.05
Class R5: Net assets	$	978,781		$	338,505		$	758,783
Shares outstanding		126,184			43,075			94,155
Net asset value, offering price and redemption price per share	$	7.76		$	7.86		$	8.06
Class 1: Net assets	$	350,658,143		$	428,617,799		$	420,275,643
Shares outstanding		45,221,085			54,558,906			52,167,994
Net asset value, offering price and redemption price per share	$	7.75		$	7.86		$	8.06
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)1	$	8.17		$	8.28		$	8.48

¹ On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

30     Lifecycle Portfolios | Annual report See notes to financial statements

Statements of assets and liabilities 8-31-09

Continued

		Lifecycle			Lifecycle
		2015 Portfolio			2010 Portfolio
Assets
Total investments in affiliated funds, at value (Note 8)		315,735,678			158,607,704
Cash		2,386			2,358
Receivable for fund shares sold		313,356			119,299
Dividends and interest receivable		55,538			31,132
Total assets		316,106,958			158,760,493
Liabilities
Payable for investments purchased		252,019			151,364
Payable for fund shares repurchased		33,241			2,500
Payable to affiliates:
Accounting and legal services fees		4,068			2,050
Transfer agent fees		1,931			1,249
Trustees’ fees		1,219			1,128
Investment management fees		529			2,806
Other liabilities and accrued expenses		63,681			57,917
Total liabilities		356,688			219,014
Net assets
Capital paid-in	$	349,161,593		$	177,557,183
Undistributed net investment income		2,232,533			1,514,823
Accumulated undistributed net realized loss on investments		(32,279,230	)		(18,247,865	)
Net unrealized depreciation on investments		(3,364,626	)		(2,282,662	)
Net assets	$	315,750,270		$	158,541,479
Investments in affiliated funds, at cost	$	319,100,304		$	160,890,366
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	$	8,595,964		$	5,637,099
Shares outstanding		1,052,594			672,562
Net asset value and redemption price per share	$	8.17		$	8.38
Class R1: Net assets	$	761,577		$	285,986
Shares outstanding		93,400			34,189
Net asset value, offering price and redemption price per share	$	8.15		$	8.36
Class R3: Net assets	$	763,203		$	1,260,086
Shares outstanding		93,593			150,559
Net asset value, offering price and redemption price per share	$	8.15		$	8.37
Class R4: Net assets	$	354,795		$	115,933
Shares outstanding		43,470			13,829
Net asset value, offering price and redemption price per share	$	8.16		$	8.38
Class R5: Net assets	$	103,487		$	207,010
Shares outstanding		12,659			24,679
Net asset value, offering price and redemption price per share	$	8.17		$	8.39
Class 1: Net assets	$	305,171,244		$	151,035,365
Shares outstanding		37,347,461			17,999,526
Net asset value, offering price and redemption price per share	$	8.17		$	8.39
Maximum public offering price per share
Class A (net asset value per share ÷ 95%)1	$	8.60		$	8.82

¹ On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

See notes to financial statements Annual report | Lifecycle Portfolios     31

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

Statements of operations For the year ended 8-31-09

These Statements of Operations summarize the Portfolios’ investment income earned and expenses directly incurred in operating each Portfolio. They also show net gains (losses) for the period stated.

		Lifecycle			Lifecycle			Lifecycle
		2045 Portfolio			2040 Portfolio			2035 Portfolio
Investment income
Total income distributions received from affiliated underlying funds	$	1,882,669		$	2,115,932		$	2,970,016
Expenses
Investment management fees (Note 4)		71,189			77,306			106,928
Distribution and service fees (Note 4)		72,386			84,964			110,763
Transfer agent fees (Note 4)		14,263			14,581			15,778
Accounting and legal services fees (Note 4)		22,031			23,991			33,193
State registration fees (Note 4)		95,025			94,979			95,057
Professional fees		36,479			36,684			37,534
Printing and postage fees (Note 4)		997			2,294			2,034
Custodian fees		10,950			10,950			10,950
Trustees’ fees (Note 5)		2,561			2,719			3,394
Registration and filing fees (Note 4)		17,514			17,993			20,597
Miscellaneous		461			523			768
Total expenses		343,856			366,984			436,996
Net expense reduction (Note 4)		(106,016	)		(106,641	)		(105,981	)
Net expenses		237,840			260,343			331,015
Net investment income		1,644,829			1,855,589			2,639,001
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in affiliated underlying funds		(16,982,267	)		(16,530,928	)		(23,313,536	)
Capital gain distributions received from affiliated underlying funds		1,648,069			1,874,114			2,620,853
		(15,334,198	)		(14,656,814	)		(20,692,683	)
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds		15,715,759			11,901,094			14,096,384
		15,715,759			11,901,094			14,096,384
Net realized and unrealized gain (loss)		381,561			(2,755,720	)		(6,596,299	)
Increase (decrease) in net assets from operations	$	2,026,390		$	(900,131	)	$	(3,957,298	)

32     Lifecycle Portfolios | Annual report See notes to financial statements

Statements of operations For the year ended 8-31-09

Continued

		Lifecycle			Lifecycle			Lifecycle
		2030 Portfolio			2025 Portfolio			2020 Portfolio
Investment income
Total income distributions received from affiliated underlying funds	$	4,118,160		$	6,592,312		$	8,295,305
Expenses
Investment management fees (Note 4)		141,515			176,684			175,795
Distribution and service fees (Note 4)		153,467			183,252			197,877
Transfer agent fees (Note 4)		20,247			18,876			22,728
Accounting and legal services fees (Note 4)		44,064			53,700			53,425
State registration fees (Note 4)		95,806			95,669			96,341
Professional fees		38,542			39,585			39,545
Printing and postage fees (Note 4)		3,287			3,373			4,273
Custodian fees		10,950			10,950			10,950
Trustees’ fees (Note 5)		4,201			5,031			5,011
Registration and filing fees (Note 4)		23,894			29,509			25,637
Miscellaneous		1,044			1,326			1,313
Total expenses		537,017			617,955			632,895
Net expense reduction (Note 4)		(107,902	)		(106,626	)		(107,417	)
Net expenses		429,115			511,329			525,478
Net investment income		3,689,045			6,080,983			7,769,827
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in affiliated underlying funds		(33,152,229	)		(44,470,399	)		(42,167,823	)
Capital gain distributions received from affiliated underlying funds		3,465,484			4,213,029			4,370,894
		(29,686,745	)		(40,257,370	)		(37,796,929	)
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds		17,612,315			22,174,850			22,924,031
		17,612,315			22,174,850			22,924,031
Net realized and unrealized gain (loss)		(12,074,430	)		(18,082,520	)		(14,872,898	)
Increase (decrease) in net assets from operations	$	(8,385,385	)	$	(12,001,537	)	$	(7,103,071	)

See notes to financial statements Annual report | Lifecycle Portfolios     33

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

Statements of operations For the year ended 8-31-09

Continued

		Lifecycle			Lifecycle
		2015 Portfolio			2010 Portfolio
Investment income
Total income distributions received from affiliated underlying funds	$	8,247,382		$	5,217,420
Expenses
Investment management fees (Note 4)		134,618			72,866
Distribution and service fees (Note 4)		147,438			85,911
Transfer agent fees (Note 4)		16,180			10,266
Accounting and legal services fees (Note 4)		41,840			22,822
State registration fees (Note 4)		95,519			95,381
Professional fees		38,503			36,773
Printing and postage fees (Note 4)		2,892			2,250
Custodian fees		10,950			10,950
Trustees’ fees (Note 5)		4,125			2,736
Registration and filing fees (Note 4)		26,588			19,828
Miscellaneous		1,063			597
Total expenses		519,716			360,380
Net expense reduction (Note 4)		(103,598	)		(100,460	)
Net expenses		416,118			259,920
Net investment income		7,831,264			4,957,500
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in affiliated underlying funds		(33,123,368	)		(18,321,755	)
Capital gain distributions received from affiliated underlying funds		3,307,269			1,932,550
		(29,816,099	)		(16,389,205	)
Change in net unrealized appreciation (depreciation) of
Investments in affiliated underlying funds		15,259,424			6,795,537
		15,259,424			6,795,537
Net realized and unrealized gain (loss)		(14,556,675	)		(9,593,668	)
Increase (decrease) in net assets from operations	$	(6,725,411	)	$	(4,636,168	)

34     Lifecycle Portfolios | Annual report See notes to 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 income less expenses, any investment gains and losses, distributions, if any, paid to shareholders and the net of Portfolio share transactions.

		Lifecycle 2045 Portfolio						Lifecycle 2040 Portfolio
		Year ended 8-31-09			Year ended 8-31-08			Year ended 8-31-09			Year ended 8-31-08
Increase (decrease) in net assets
From operations
Net investment income	$	1,644,829		$	350,876		$	1,855,589		$	418,451
Net realized gain (loss)		(15,334,198	)		948,294			(14,656,814	)		1,117,552
Change in net unrealized appreciation (depreciation)		15,715,759			(9,467,968	)		11,901,094			(10,832,138	)
Increase (decrease) in net assets resulting from operations		2,026,390			(8,168,798	)		(900,131	)		(9,296,135	)
Distributions to shareholders
From net investment income
Class A		(10,458	)		(8,791	)		(14,342	)		(5,828	)
Class B1		(420	)		(645	)		(386	)		(940	)
Class C1		(336	)		(628	)		(577	)		(716	)
Class R1		(493	)		(615	)		(486	)		(607	)
Class R1		(1,521	)		(644	)		(2,070	)		(902	)
Class R21		(3,979	)		(1,046	)		(5,309	)		(1,964	)
Class R3		(1,386	)		(885	)		(8,513	)		(1,498	)
Class R4		(1,846	)		(720	)		(1,802	)		(755	)
Class R5		(2,184	)		(815	)		(7,914	)		(875	)
Class 1		(1,616,815	)		(284,853	)		(1,817,532	)		(344,058	)
From net realized gain
Class A		(12,824	)		(21,747	)		(18,725	)		(14,062	)
Class B1		(3,336	)		(2,729	)		(2,792	)		(3,740	)
Class C1		(2,669	)		(2,660	)		(4,170	)		(2,850	)
Class R1		(1,802	)		(1,850	)		(1,780	)		(1,764	)
Class R1		(2,924	)		(1,642	)		(4,167	)		(2,239	)
Class R21		(5,193	)		(2,313	)		(7,363	)		(4,259	)
Class R3		(2,241	)		(2,259	)		(14,509	)		(3,720	)
Class R4		(2,021	)		(1,592	)		(2,106	)		(1,638	)
Class R5		(1,806	)		(1,593	)		(7,037	)		(1,686	)
Class 1		(1,284,357	)		(556,238	)		(1,554,222	)		(662,429	)
Total distributions		(2,958,611	)		(894,265	)		(3,475,802	)		(1,056,530	)
From Portfolio share transactions (Note 6)		94,759,108			84,894,954			92,043,643			99,254,044
Total increase		93,826,887			75,831,891			87,667,710			88,901,379
Net assets
Beginning of year		101,355,473			25,523,582			116,592,484			27,691,105
End of year	$	195,182,360		$	101,355,473		$	204,260,194		$	116,592,484
Undistributed net investment income	$	56,428		$	51,234		$	56,790		$	60,308

¹Effective at the close of business on August 21, 2009, Classes B, C and R2 merged into Class A and Class R merged into Class R1.

See notes to financial statements Annual report | Lifecycle Portfolios     35

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

Statements of changes in net assets

Continued

		Lifecycle 2035 Portfolio						Lifecycle 2030 Portfolio
		Year ended 8-31-09			Year ended 8-31-08			Year ended 8-31-09			Year ended 8-31-08
Increase (decrease) in net assets
From operations
Net investment income	$	2,639,001		$	671,060		$	3,689,045		$	1,002,947
Net realized gain (loss)		(20,692,683	)		2,055,879			(29,686,745	)		3,085,478
Change in net unrealized appreciation (depreciation)		14,096,384			(16,625,789	)		17,612,315			(22,188,549	)
Increase (decrease) in net assets resulting from operations		(3,957,298	)		(13,898,850	)		(8,385,385	)		(18,100,124	)
Distributions to shareholders
From net investment income
Class A		(21,990	)		(6,293	)		(38,779	)		(9,651	)
Class B1		(728	)		(2,514	)		(1,280	)		—
Class C1		(473	)		(1,812	)		(1,395	)		—
Class R1		(427	)		(783	)		(705	)		(418	)
Class R1		(2,143	)		(825	)		(3,713	)		(669	)
Class R21		(9,865	)		(1,230	)		(13,991	)		(1,364	)
Class R3		(1,970	)		(1,062	)		(3,975	)		(2,951	)
Class R4		(1,116	)		(898	)		(2,853	)		(865	)
Class R5		(2,251	)		(1,071	)		(12,166	)		(1,168	)
Class 1		(2,538,747	)		(617,110	)		(3,515,669	)		(908,102	)
From net realized gain
Class A		(33,645	)		(11,557	)		(52,607	)		(20,840	)
Class B1		(7,217	)		(6,842	)		(7,892	)		(4,260	)
Class C1		(4,692	)		(4,927	)		(8,601	)		(6,510	)
Class R1		(2,020	)		(1,669	)		(2,620	)		(1,939	)
Class R1		(5,243	)		(1,550	)		(7,828	)		(1,585	)
Class R21		(16,273	)		(2,067	)		(20,586	)		(2,170	)
Class R3		(4,039	)		(1,996	)		(7,146	)		(6,994	)
Class R4		(1,540	)		(1,509	)		(3,553	)		(1,379	)
Class R5		(2,340	)		(1,627	)		(11,595	)		(1,399	)
Class 1		(2,515,920	)		(937,628	)		(3,176,478	)		(1,088,293	)
Total distributions		(5,172,639	)		(1,604,970	)		(6,893,432	)		(2,060,557	)
From Portfolio share transactions (Note 6)		122,773,760			140,422,057			150,736,677			195,129,585
Total increase		113,643,823			124,918,237			135,457,860			174,968,904
Net assets
Beginning of year		166,562,884			41,644,647			227,743,539			52,774,635
End of year	$	280,206,707		$	166,562,884		$	363,201,399		$	227,743,539
Undistributed net investment income	$	96,504		$	37,462		$	177,163		$	83,058

¹Effective at the close of business on August 21, 2009, Classes B, C and R2 merged into Class A and Class R merged into Class R1.

36     Lifecycle Portfolios | Annual report See notes to financial statements

Statements of changes in net assets

Continued

		Lifecycle 2025 Portfolio						Lifecycle 2020 Portfolio
		Year ended 8-31-09			Year ended 8-31-08			Year ended 8-31-09			Year ended 8-31-08
Increase (decrease) in net assets
From operations
Net investment income	$	6,080,983		$	1,913,097		$	7,769,827		$	2,624,361
Net realized gain (loss)		(40,257,370	)		3,903,248			(37,796,929	)		3,137,072
Change in net unrealized appreciation (depreciation)		22,174,850			(27,890,182	)		22,924,031			(25,424,932	)
Increase (decrease) in net assets resulting from operations		(12,001,537	)		(22,073,837	)		(7,103,071	)		(19,663,499	)
Distributions to shareholders
From net investment income
Class A		(55,614	)		(7,864	)		(87,934	)		(23,967	)
Class B1		(3,718	)		(142	)		(12,077	)		(2,761	)
Class C1		(4,283	)		(150	)		(12,203	)		(2,651	)
Class R1		(1,370	)		(544	)		(2,983	)		(1,648	)
Class R1		(4,877	)		(924	)		(15,191	)		(1,048	)
Class R21		(14,054	)		(2,928	)		(25,119	)		(2,401	)
Class R3		(6,133	)		(3,411	)		(14,569	)		(6,178	)
Class R4		(1,929	)		(1,056	)		(2,851	)		(1,323	)
Class R5		(4,829	)		(1,375	)		(15,829	)		(3,967	)
Class 1		(5,650,644	)		(1,458,550	)		(6,927,950	)		(1,677,701	)
From net realized gain
Class A		(57,069	)		(12,152	)		(69,552	)		(24,255	)
Class B1		(8,816	)		(4,596	)		(16,145	)		(9,799	)
Class C1		(10,155	)		(4,875	)		(16,315	)		(9,406	)
Class R1		(2,651	)		(1,419	)		(3,567	)		(2,405	)
Class R1		(6,834	)		(1,532	)		(14,881	)		(1,117	)
Class R21		(15,422	)		(3,557	)		(20,842	)		(2,017	)
Class R3		(7,734	)		(5,656	)		(13,309	)		(6,589	)
Class R4		(1,874	)		(1,283	)		(2,166	)		(1,111	)
Class R5		(3,812	)		(1,319	)		(10,298	)		(2,751	)
Class 1		(4,249,654	)		(1,398,183	)		(4,340,643	)		(1,163,398	)
Total distributions		(10,111,472	)		(2,911,516	)		(11,624,424	)		(2,946,493	)
From Portfolio share transactions (Note 6)		174,762,244			244,498,725			169,005,348			240,696,406
Total increase		152,649,235			219,513,372			150,277,853			218,086,414
Net assets
Beginning of year		288,563,234			69,049,862			286,649,400			68,562,986
End of year	$	441,212,469		$	288,563,234		$	436,927,253		$	286,649,400
Undistributed net investment income	$	834,691		$	501,450		$	1,694,496		$	1,041,701

¹Effective at the close of business on August 21, 2009, Classes B, C and R2 merged into Class A and Class R merged into Class R1.

See notes to financial statements Annual report | Lifecycle Portfolios     37

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

Statements of changes in net assets

Continued

		Lifecycle 2015 Portfolio						Lifecycle 2010 Portfolio
		Year ended 8-31-09			Year ended 8-31-08			Year ended 8-31-09			Year ended 8-31-08
Increase (decrease) in net assets
From operations
Net investment income	$	7,831,264		$	3,040,482		$	4,957,500		$	2,115,380
Net realized gain (loss)		(29,816,099	)		2,202,209			(16,389,205	)		634,382
Change in net unrealized appreciation (depreciation)		15,259,424			(18,559,834	)		6,795,537			(9,068,976	)
Increase (decrease) in net assets resulting from operations		(6,725,411	)		(13,317,143	)		(4,636,168	)		(6,319,214	)
Distributions to shareholders
From net investment income
Class A		(87,624	)		(16,005	)		(71,326	)		(17,084	)
Class B1		(14,400	)		(2,898	)		(5,143	)		(1,448	)
Class C1		(18,512	)		(1,663	)		(18,242	)		(6,119	)
Class R1		(3,070	)		(1,120	)		(2,294	)		(1,284	)
Class R1		(6,036	)		(2,220	)		(3,341	)		(1,558	)
Class R21		(28,173	)		(3,128	)		(29,996	)		(1,832	)
Class R3		(13,585	)		(1,818	)		(21,549	)		(6,924	)
Class R4		(5,383	)		(1,605	)		(3,198	)		(1,831	)
Class R5		(11,672	)		(1,882	)		(5,241	)		(2,106	)
Class 1		(6,936,637	)		(1,666,513	)		(4,437,873	)		(1,067,704	)
From net realized gain
Class A		(51,765	)		(12,980	)		(35,183	)		(9,514	)
Class B1		(12,116	)		(5,344	)		(3,387	)		(1,532	)
Class C1		(15,577	)		(3,065	)		(12,012	)		(6,470	)
Class R1		(2,395	)		(1,194	)		(1,409	)		(898	)
Class R1		(4,128	)		(1,875	)		(1,847	)		(898	)
Class R21		(17,153	)		(2,187	)		(15,066	)		(898	)
Class R3		(8,853	)		(1,535	)		(11,451	)		(3,990	)
Class R4		(3,075	)		(1,121	)		(1,523	)		(899	)
Class R5		(5,935	)		(1,122	)		(2,261	)		(899	)
Class 1		(3,438,900	)		(993,621	)		(1,885,039	)		(455,838	)
Total distributions		(10,684,989	)		(2,722,896	)		(6,567,381	)		(1,589,726	)
From Portfolio share transactions (Note 6)		109,133,693			182,083,635			41,148,342			109,224,697
Total increase		91,723,293			166,043,596			29,944,793			101,315,757
Net assets
Beginning of year		224,026,977			57,983,381			128,596,686			27,280,929
End of year	$	315,750,270		$	224,026,977		$	158,541,479		$	128,596,686
Undistributed net investment income	$	2,232,533		$	1,526,791		$	1,514,823		$	1,155,750

¹Effective at the close of business on August 21, 2009, Classes B, C and R2 merged into Class A and Class R merged into Class R1.

38     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																		Ratios and supplemental data
		Income (loss) from investment operations						Less distributions										Ratios to average net assets
Period ended	Net asset value, beginning of period ($)	Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)		Total from invest- ment operations ($)		From net invest- ment income ($)		From net realized gain ($)		From capital paid-in ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3		Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%) 1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2009	9.56	0.06		(1.69	)	(1.63	)	(0.08	)	(0.09	)	—	(0.17	)	7.76	(16.60	)5	1.90	6	0.63	7	0.86		3,488	22
08-31-2008	10.94	0.05		(1.21	)	(1.16	)	(0.06	)	(0.16	)	—	(0.22	)	9.56	(10.83	)5	1.61	6	0.66	8,9	0.44		1,874	16
08-31-200710	10.00	(0.04	)	1.22		1.18		(0.06	)	(0.18	)	—	(0.24	)	10.94	11.97	5,11	1.94	6,12	0.62	12	(0.45	)12	1,348	5
CLASS R1
08-31-2009	9.52	0.06		(1.69	)	(1.63	)	(0.05	)	(0.09	)	—	(0.14	)	7.75	(16.72	)5	5.27	6	0.86	7	0.87		616	22
08-31-2008	10.92	0.01		(1.19	)	(1.18	)	(0.06	)	(0.16	)	—	(0.22	)	9.52	(11.05	)5	12.47	6	0.89	8,9	0.08		181	16
08-31-200710	10.00	(0.01	)	1.16		1.15		(0.05	)	(0.18	)	—	(0.23	)	10.92	11.68	5,11	16.68	6,12	0.87	12	(0.09	)12	113	5
CLASS R3
08-31-2009	9.53	0.06		(1.68	)	(1.62	)	(0.06	)	(0.09	)	—	(0.15	)	7.76	(16.58	)5	6.51	6	0.76	7,8	0.95		259	22
08-31-2008	10.93	0.03		(1.21	)	(1.18	)	(0.06	)	(0.16	)	—	(0.22	)	9.53	(11.04	)5	10.48	6	0.81	8,9	0.28		283	16
08-31-200710	10.00	—13		1.16		1.16		(0.05	)	(0.18	)	—	(0.23	)	10.93	11.80	5,11	16.45	6,12	0.80	12	(0.03	)12	118	5
CLASS R4
08-31-2009	9.57	0.08		(1.70	)	(1.62	)	(0.08	)	(0.09	)	—	(0.17	)	7.78	(16.35	)5	6.09	6	0.48	7,8	1.10		324	22
08-31-2008	10.95	0.06		(1.21	)	(1.15	)	(0.07	)	(0.16	)	—	(0.23	)	9.57	(10.76	) 5	14.15	6	0.52	8,9	0.55		142	16
08-31-200710	10.00	0.02		1.17		1.19		(0.06	)	(0.18	)	—	(0.24	)	10.95	12.06	5,11	16.32	6,12	0.52	12	0.26	12	112	5
CLASS R5
08-31-2009	9.61	0.11		(1.72	)	(1.61	)	(0.11	)	(0.09	)	—	(0.20	)	7.80	(16.12	)5	7.40	6	0.19	7,8	1.60		216	22
08-31-2008	10.97	0.08		(1.20	)	(1.12	)	(0.08	)	(0.16	)	—	(0.24	)	9.61	(10.47	)5	12.02	6	0.24	8,9	0.72		161	16
08-31-200710	10.00	0.05		1.16		1.21		(0.06	)	(0.18	)	—	(0.24	)	10.97	12.32	5,11	16.02	6,12	0.23	12	0.55	12	112	5
CLASS 1
08-31-2009	9.61	0.10		(1.70	)	(1.60	)	(0.12	)	(0.09	)	—	(0.21	)	7.80	(16.06	)5	0.19	6	0.19	7,8	1.40		190,278	22
08-31-2008	10.97	0.06		(1.18	)	(1.12	)	(0.08	)	(0.16	)	—	(0.24	)	9.61	(10.47	)	0.24	6	0.20	8	0.59		97,667	16
08-31-200710	10.00	(0.01	)	1.23		1.22		(0.07	)	(0.18	)	—	(0.25	)	10.97	12.32	5,11	0.64	6,12	0.20	12	(0.15	)12	23,187	5

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	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.
8	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 Portfolio was as follows:

Year ended	Lifecycle 2045
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.31%

9	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
10	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
11	Not annualized.
12	Annualized.
13	Less than $0.01 per share.

See notes to financial statements Annual report | Lifecycle Portfolios     39

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

Financial highlights

Continued

Lifecycle 2040 Portfolio

Per share operating performance for a share outstanding throughout each period																		Ratios and supplemental data
		Income (loss) from investment operations						Less distributions										Ratios to average net assets
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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distribu- tions ($)		Net asset value, end of period ($)	Total return (%)3		Ratio of gross expenses to average net assets (%)4		Ratio of net expenses to average net assets (%)4		Ratio of net investment income (loss) to average net assets (%) 1		Net assets, end of period (in thousands) ($)	Portfolio turnover (%)
CLASS A
08-31-2009	9.56	0.06		(1.67	)	(1.61	)	(0.08	)	(0.10	)	—	(0.18	)	7.77	(16.33	)6	1.61	7	0.63	5,12	0.90		4,434	20
08-31-2008	10.96	0.05		(1.22	)	(1.17	)	(0.07	)	(0.16	)	—	(0.23	)	9.56	(10.92	)6	2.15	7	0.65	5,8	0.49		1,257	16
08-31-20079	10.00	(0.02	)	1.20		1.18		(0.05	)	(0.17	)	—	(0.22	)	10.96	11.99	6,10	3.15	7,11	0.62	11	(0.18	)11	584	3
CLASS R1
08-31-2009	9.53	0.07		(1.69	)	(1.62	)	(0.05	)	(0.10	)	—	(0.15	)	7.76	(16.54	)6	4.57	7	0.85	5,12	0.98		728	20
08-31-2008	10.94	0.01		(1.20	)	(1.19	)	(0.06	)	(0.16	)	—	(0.22	)	9.53	(11.05	)6	9.48	7	0.89	5,8	0.09		200	16
08-31-20079	10.00	(0.01	)	1.17		1.16		(0.05	)	(0.17	)	—	(0.22	)	10.94	11.70	6,10	16.61	7,11	0.87	11	(0.09	)11	112	3
CLASS R3
08-31-2009	9.53	0.08		(1.70	)	(1.62	)	(0.06	)	(0.10	)	—	(0.16	)	7.75	(16.52	)6	1.96	7	0.76	5,12	1.14		1,271	20
08-31-2008	10.95	0.01		(1.21	)	(1.20	)	(0.06	)	(0.16	)	—	(0.22	)	9.53	(11.14	)6	5.48	7	0.83	5,8	0.06		1,181	16
08-31-20079	10.00	(0.01	)	1.18		1.17		(0.05	)	(0.17	)	—	(0.22	)	10.95	11.82	6,10	15.59	7,11	0.80	11	(0.07	)11	141	3
CLASS R4
08-31-2009	9.58	0.08		(1.69	)	(1.61	)	(0.09	)	(0.10	)	—	(0.19	)	7.78	(16.28	)6	6.79	7	0.48	5,12	1.21		253	20
08-31-2008	10.97	0.04		(1.20	)	(1.16	)	(0.07	)	(0.16	)	—	(0.23	)	9.58	(10.76	)6	11.68	7	0.53	5,8	0.40		173	16
08-31-20079	10.00	0.02		1.17		1.19		(0.05	)	(0.17	)	—	(0.22	)	10.97	12.07	6,10	16.23	7,11	0.52	11	0.26	11	112	3
CLASS R5
08-31-2009	9.62	0.12		(1.72	)	(1.60	)	(0.12	)	(0.10	)	—	(0.21	)	7.80	(16.05	)6	2.54	7	0.19	5,12	1.80		561	20
08-31-2008	10.99	0.05		(1.18	)	(1.13	)	(0.08	)	(0.16	)	—	(0.24	)	9.62	(10.48	)6	7.95	7	0.24	5,8	0.48		633	16
08-31-20079	10.00	0.05		1.17		1.22		(0.06	)	(0.17	)	—	(0.23	)	10.99	12.33	6,10	15.71	7,11	0.23	11	0.53	11	115	3
CLASS 1
08-31-2009	9.62	0.10		(1.71	)	(1.61	)	(0.12	)	(0.10	)	—	(0.22	)	7.79	(16.09	)6	0.18	7	0.18	5,12	1.46		197,012	20
08-31-2008	10.99	0.06		(1.19	)	(1.13	)	(0.08	)	(0.16	)	—	(0.24	)	9.62	(10.48	)6	0.22	7	0.20	5	0.61		111,814	16
08-31-20079	10.00	(0.01	)	1.23		1.22		(0.06	)	(0.17	)	—	(0.23	)	10.99	12.34	6,10	0.62	7,11	0.20	11	(0.16	)11	25,954	3

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	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 Portfolio was as follows:

Year ended	Lifecycle 2040
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.31%

6	Total returns would have been lower had certain expenses not been reduced during the periods shown.
7	Does not take into consideration expense reductions during the periods shown.
8	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
9	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
10	Not annualized.
11	Annualized.
12	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.

40     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																												Ratios and supplemental data
			Income (loss) from investment operations									Less distributions																Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net invest- ment in- come (loss) ($)1,2			Net realized and unrealized gain (loss) on invest- ments ($)			Total from invest- ment operations ($)			From net invest- ment income ($)			From net realized gain ($)			From capital paid-in ($)		Total distribu- tions ($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets (%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
08-31-2009		9.61		0.07			(1.70	)		(1.63	)		(0.08	)		(0.11	)		—		(0.19	)		7.79		(16.39	)5		1.29	6		0.62	7,12		1.06			5,950		20
08-31-2008		11.02		0.02			(1.20	)		(1.18	)		(0.08	)		(0.15	)		—		(0.23	)		9.61		(10.93	)5		1.80	6		0.64	7,8		0.20			2,132		14
08-31-20079		10.00		(0.02	)		1.20			1.18			(0.04	)		(0.12	)		—		(0.16	)		11.02		11.92	5,10		2.47	6,11		0.62	11		(0.20	)11		610		4
CLASS R1
08-31-2009		9.58		0.08			(1.71	)		(1.63	)		(0.05	)		(0.11	)		—		(0.16	)		7.79		(16.50	)5		4.49	6		0.84	7,12		1.13			647		20
08-31-2008		11.00		—	12		(1.19	)		(1.19	)		(0.08	)		(0.15	)		—		(0.23	)		9.58		(11.06	)5		10.40	6		0.88	7,8		(0.02	)		177		14
08-31-20079		10.00		—	12		1.15			1.15			(0.03	)		(0.12	)		—		(0.15	)		11.00		11.62	5,10		16.29	6,11		0.86	11		0.01	11		112		4
CLASS R3
08-31-2009		9.59		0.06			(1.69	)		(1.63	)		(0.06	)		(0.11	)		—		(0.17	)		7.79		(16.47	)5		4.47	6		0.77	7,12		0.84			451		20
08-31-2008		11.01		0.02			(1.21	)		(1.19	)		(0.08	)		(0.15	)		—		(0.23	)		9.59		(11.05	)5		9.94	6		0.81	7,8		0.24			278		14
08-31-20079		10.00		0.01			1.15			1.16			(0.03	)		(0.12	)		—		(0.15	)		11.01		11.74	5,10		16.22	6,11		0.79	11		0.08	11		112		4
CLASS R4
08-31-2009		9.63		0.07			(1.69	)		(1.62	)		(0.09	)		(0.11	)		—		(0.20	)		7.81		(16.24	)5		9.27	6		0.47	7,12		1.06			182		20
08-31-2008		11.03		0.04			(1.20	)		(1.16	)		(0.09	)		(0.15	)		—		(0.24	)		9.63		(10.77	)5		11.02	6		0.52	7,8		0.41			219		14
08-31-20079		10.00		0.03			1.16			1.19			(0.04	)		(0.12	)		—		(0.16	)		11.03		12.00	5,10		15.92	6,11		0.50	11		0.36	11		112		4
CLASS R5
08-31-2009		9.67		0.11			(1.72	)		(1.61	)		(0.12	)		(0.11	)		—		(0.23	)		7.83		(16.01	)5		7.18	6		0.17	7,12		1.61			199		20
08-31-2008		11.05		0.08			(1.21	)		(1.13	)		(0.10	)		(0.15	)		—		(0.25	)		9.67		(10.49	)5		11.07	6		0.23	7,8		0.78			149		14
08-31-20079		10.00		0.06			1.15			1.21			(0.04	)		(0.12	)		—		(0.16	)		11.05		12.26	5,10		15.08	6,11		0.22	11		0.62	11		119		4
CLASS 1
08-31-2009		9.68		0.10			(1.72	)		(1.62	)		(0.12	)		(0.11	)		—		(0.23	)		7.83		(16.02	)5		0.17	6		0.17	7,12		1.49			272,778		20
08-31-2008		11.05		0.07			(1.19	)		(1.12	)		(0.10	)		(0.15	)		—		(0.25	)		9.68		(10.40	)5		0.19	6		0.19	7		0.66			161,263		14
08-31-20079		10.00		(0.01	)		1.23			1.22			(0.05	)		(0.12	)		—		(0.17	)		11.05		12.27	5,10		0.45	6,11		0.2011			(0.06	)11		39,674		4

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 Portfolio was as follows:

Year ended	Lifecycle 2035
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.31%

8	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
9	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
10	Not annualized.
11	Annualized.
12	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.

See notes to financial statements Annual report | Lifecycle Portfolios     41

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2030 Portfolio

Per share operating performance for a share outstanding throughout each period																												Ratios and supplemental data
			Income (loss) from investment operations									Less distributions																Ratios to average net assets
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 ($)			From net realized gain ($)			From capital paid-in ($)		Total distribu- tions ($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets (%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
08-31-2009		9.57		0.08			(1.70	)		(1.62	)		(0.08	)		(0.11	)		—		(0.19	)		7.76		(16.36	)5		1.06	6		0.61	7,8		1.13			9,351		23
08-31-2008		10.91		0.04			(1.18	)		(1.14	)		(0.07	)		(0.13	)		—		(0.20	)		9.57		(10.66	)5		1.33	6		0.63	8,9		0.43			3,345		10
08-31-200710		10.00		(0.02	)		1.14			1.12			(0.06	)		(0.15	)		—		(0.21	)		10.91		11.38	5,11		2.02	6,13		0.63	13		(0.23	)13		1,135		3
CLASS R1
08-31-2009		9.52		0.07			(1.69	)		(1.62	)		(0.05	)		(0.11	)		—		(0.16	)		7.74		(16.52	)5		3.04	6		0.83	7,8		1.04			1,245		23
08-31-2008		10.88		—14			(1.17	)		(1.17	)		(0.06	)		(0.13	)		—		(0.19	)		9.52		(10.92	)5		8.40	6		0.88	8,9		0.02			320		10
08-31-200710		10.00		0.01			1.08			1.09			(0.06	)		(0.15	)		—		(0.21	)		10.88		10.98	5,11		16.24	6,13		0.86	13		0.12	13		112		3
CLASS R3
08-31-2009		9.53		0.08			(1.69	)		(1.61	)		(0.06	)		(0.11	)		—		(0.17	)		7.75		(16.38	)5		3.09	6		0.76	7,8		1.12			609		23
08-31-2008		10.88		0.08			(1.24	)		(1.16	)		(0.06	)		(0.13	)		—		(0.19	)		9.53		(10.83	)5		4.24	6		0.78	8,9		0.76			676		10
08-31-200710		10.00		0.02			1.07			1.09			(0.06	)		(0.15	)		—		(0.21	)		10.88		11.00	5,11,12		16.18	6,13		0.79	13		0.19	13		112		3
CLASS R4
08-31-2009		9.55		0.10			(1.69	)		(1.59	)		(0.09	)		(0.11	)		—		(0.20	)		7.76		(16.08	)5		5.43	6		0.45	7,8		1.52			360		23
08-31-2008		10.91		0.08			(1.22	)		(1.14	)		(0.09	)		(0.13	)		—		(0.22	)		9.55		(10.66	)5		14.83	6		0.49	8,9		0.79			115		10
08-31-200710		10.00		0.04			1.08			1.12			(0.06	)		(0.15	)		—		(0.21	)		10.91		11.36	5,11,12		15.88	6,13		0.50	13		0.47	13		111		3
CLASS R5
08-31-2009		9.57		0.12			(1.71	)		(1.59	)		(0.11	)		(0.11	)		—		(0.22	)		7.76		(15.88	)5		1.61	6		0.17	7,8		1.77			979		23
08-31-2008		10.93		0.04			(1.15	)		(1.11	)		(0.12	)		(0.13	)		—		(0.25	)		9.57		(10.41	)5		6.18	6		0.24	8,9		0.42			1,002		10
08-31-200710		10.00		0.07			1.08			1.15			(0.07	)		(0.15	)		—		(0.22	)		10.93		11.62	5,11,12		15.57	6,13		0.22	13		0.76	13		112		3
CLASS 1
08-31-2009		9.57		0.11			(1.70	)		(1.59	)		(0.12	)		(0.11	)		—		(0.23	)		7.75		(15.90	)		0.16	6		0.16	7,8		1.58			350,658		23
08-31-2008		10.93		0.08			(1.19	)		(1.11	)		(0.12	)		(0.13	)		—		(0.25	)		9.57		(10.41	)		0.18	6		0.18	8		0.75			219,711		10
08-31-200710		10.00		0.01			1.14			1.15			(0.07	)		(0.15	)		—		(0.22	)		10.93		11.63	5,11		0.38	6,13		0.20	13		0.12	13		50,070		3

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	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.
8	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 Portfolio was as follows:

Year ended	Lifecycle 2030
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.31%

9	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
10	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
11	Not annualized.
12	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 R1 and Class 1.
13	Annualized.
14	Less than $0.01 per share.

42     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																											Ratios and supplemental data
			Income (loss) from investment operations								Less distributions																Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)			Total from invest- ment operations ($)			From net invest- ment income ($)			From net realized gain ($)			From capital paid-in ($)		Total distribu- tions ($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets (%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
08-31-2009		9.57		0.11		(1.58	)		(1.47	)		(0.12	)		(0.11	)		—		(0.23	)		7.87		(14.74	)5		0.98	6		0.61	7,13		1.59			9,419		25
08-31-2008		10.85		0.05		(1.12	)		(1.07	)		(0.08	)		(0.13	)		—		(0.21	)		9.57		(10.08	) 5		1.49	6		0.62	7,8		0.52			3,604		9
08-31-20079		10.00		0.02		1.03			1.05			(0.07	)		(0.13	)		—		(0.20	)		10.85		10.57	5,10		2.25	6,12		0.63	12		0.19	12		661		3
CLASS R1
08-31-2009		9.52		0.09		(1.57	)		(1.48	)		(0.09	)		(0.11	)		—		(0.20	)		7.84		(15.01	)5		3.27	6		0.82	7,13		1.40			1,197		25
08-31-2008		10.83		0.03		(1.14	)		(1.11	)		(0.07	)		(0.13	)		—		(0.20	)		9.52		(10.42	)5		8.37	6		0.87	7,8		0.27			285		9
08-31-20079		10.00		0.03		0.99			1.02			(0.06	)		(0.13	)		—		(0.19	)		10.83		10.28	5,10		16.14	6,12		0.87	12		0.35	12		111		3
CLASS R3
08-31-2009		9.53		0.06		(1.53	)		(1.47	)		(0.10	)		(0.11	)		—		(0.21	)		7.85		(14.87	)5		2.11	6		0.75	7,13		0.87			1,381		25
08-31-2008		10.84		0.13		(1.24	)		(1.11	)		(0.07	)		(0.13	)		—		(0.20	)		9.53		(10.41	)5		5.37	6		0.78	7,8		1.22			456		9
08-31-20079		10.00		0.03		1.00			1.03			(0.06	)		(0.13	)		—		(0.19	)		10.84		10.40	5,10		14.43	6,12		0.81	12		0.34	12		186		3
CLASS R4
08-31-2009		9.55		0.11		(1.58	)		(1.47	)		(0.12	)		(0.11	)		—		(0.23	)		7.85		(14.68	)5		7.64	6		0.45	7,13		1.56			260		25
08-31-2008		10.86		0.09		(1.17	)		(1.08	)		(0.10	)		(0.13	)		—		(0.23	)		9.55		(10.16	)5		11.76	6		0.49	7,8		0.90			207		9
08-31-20079		10.00		0.06		0.99			1.05			(0.06	)		(0.13	)		—		(0.19	)		10.86		10.65	5,10		15.77	6,12		0.52	12		0.70	12		111		3
CLASS R5
08-31-2009		9.57		0.14		(1.59	)		(1.45	)		(0.15	)		(0.11	)		—		(0.26	)		7.86		(14.38	)5		4.27	6		0.16	7,13		2.08			339		25
08-31-2008		10.88		0.09		(1.14	)		(1.05	)		(0.13	)		(0.13	)		—		(0.26	)		9.57		(9.91	)5		7.87	6		0.21	7,8		0.92			285		9
08-31-20079		10.00		0.09		0.99			1.08			(0.07	)		(0.13	)		—		(0.20	)		10.88		10.91	5,10,11		15.34	6,12		0.23	12		0.98	12		113		3
CLASS 1
08-31-2009		9.58		0.14		(1.59	)		(1.45	)		(0.16	)		(0.11	)		—		(0.27	)		7.86		(14.37	)5		0.16	6		0.16	7,13		2.08			428,618		25
08-31-2008		10.88		0.11		(1.15	)		(1.04	)		(0.13	)		(0.13	)		—		(0.26	)		9.58		(9.81	)5		0.17	6		0.17	7		1.08			280,532		9
08-31-20079		10.00		0.04		1.04			1.08			(0.07	)		(0.13	)		—		(0.20	)		10.88		10.93	5,10		0.31	6,12		0.20	12		0.39	12		67,149		3

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 Portfolio was as follows:

Year ended	Lifecycle 2025
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.31%

8	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
9	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
10	Not annualized.
11	The Adviser made a payment to the Portfolio of $2,707. Excluding this payment, total returns would have been 10.91% for Class R5, respectively. There was no effect to the total returns for Class A, Class R1, Class R3, Class R4 and Class 1.
12	Annualized.
13	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.

See notes to financial statements Annual report | Lifecycle Portfolios     43

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2020 Portfolio

Per share operating performance for a share outstanding throughout each period																											Ratios and supplemental data
			Income (loss) from investment operations								Less distributions																Ratios to average net assets
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 ($)			From net realized gain ($)			From capital paid-in ($)		Total distribu- tions ($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets (%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
08-31-2009		9.65		0.14		(1.45	)		(1.31	)		(0.16	)		(0.12	)		—		(0.28	)		8.06		(12.75	)5		0.86	6		0.61	7,8		2.06			13,067		26
08-31-2008		10.80		0.12		(1.05	)		(0.93	)		(0.11	)		(0.11	)		—		(0.22	)		9.65		(8.82	)5		1.15	6		0.62	7,9		1.18			4,285		10
08-31-200710		10.00		0.04		0.94			0.98			(0.07	)		(0.11	)		—		(0.18	)		10.80		9.87	5,11		1.59	6,13		0.64	13		0.49	13		1,491		7
CLASS R1
08-31-2009		9.61		0.15		(1.47	)		(1.32	)		(0.13	)		(0.12	)		—		(0.25	)		8.04		(13.00	)5		2.11	6		0.83	7,8		2.14			1,675		26
08-31-2008		10.78		0.08		(1.04	)		(0.96	)		(0.10	)		(0.11	)		—		(0.21	)		9.61		(9.07	)5		9.71	6		0.86	7,9		0.77			250		10
08-31-200710		10.00		0.07		0.88			0.95			(0.06	)		(0.11	)		—		(0.17	)		10.78		9.58	5,11,12		16.14	6,13		0.87	13		0.74	13		110		7
CLASS R3
08-31-2009		9.62		0.16		(1.48	)		(1.32	)		(0.14	)		(0.12	)		—		(0.26	)		8.04		(12.97	)5		2.29	6		0.76	7,8		2.37			895		26
08-31-2008		10.78		0.15		(1.10	)		(0.95	)		(0.10	)		(0.11	)		—		(0.21	)		9.62		(8.98	)5		3.97	6		0.78	7,9		1.48			825		10
08-31-200710		10.00		0.07		0.88			0.95			(0.06	)		(0.11	)		—		(0.17	)		10.78		9.59	5,11		15.58	6,13		0.80	13		0.80	13		126		7
CLASS R4
08-31-2009		9.64		0.16		(1.46	)		(1.30	)		(0.17	)		(0.12	)		—		(0.29	)		8.05		(12.68	)5		7.25	6		0.45	7,8		2.24			255		26
08-31-2008		10.80		0.16		(1.08	)		(0.92	)		(0.13	)		(0.11	)		—		(0.24	)		9.64		(8.72	)5		13.87	6		0.48	7,9		1.50			138		10
08-31-200710		10.00		0.10		0.88			0.98			(0.07	)		(0.11	)		—		(0.18	)		10.80		9.85	5,11		15.75	6,13		0.52	13		1.09	13		110		7
CLASS R5
08-31-2009		9.66		0.20		(1.48	)		(1.28	)		(0.20	)		(0.12	)		—		(0.32	)		8.06		(12.38	)5		1.96	6		0.16	7,8		2.92			759		26
08-31-2008		10.82		0.19		(1.08	)		(0.89	)		(0.16	)		(0.11	)		—		(0.27	)		9.66		(8.47	)5		6.46	6		0.21	7,9		1.83			758		10
08-31-200710		10.00		0.10		0.90			1.00			(0.07	)		(0.11	)		—		(0.18	)		10.82		10.11	5,11		8.22	6,13		0.23	13		1.08	13		272		7
CLASS 1
08-31-2009		9.67		0.19		(1.48	)		(1.29	)		(0.20	)		(0.12	)		—		(0.32	)		8.06		(12.38	)5		0.16	6		0.16	7,8		2.67			420,276		26
08-31-2008		10.82		0.15		(1.03	)		(0.88	)		(0.16	)		(0.11	)		—		(0.27	)		9.67		(8.38	)5		0.17	6		0.17	7,9		1.49			276,252		10
08-31-200710		10.00		0.07		0.93			1.00			(0.07	)		(0.11	)		—		(0.18	)		10.82		10.22	5,11,12		0.32	6,13		0.20	13		0.78	13		64,901		7

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 Portfolio was as follows:

Year ended	Lifecycle 2020
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.25%

8	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.
9	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
10	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
11	Not annualized.
12	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 R3, Class R4, Class R5 and Class 1.
13	Annualized.

44     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																											Ratios and supplemental data
			Income (loss) from investment operations								Less distributions																Ratios to average net assets
Period ended	Net asset value, beginning of period ($)		Net invest- ment in- come (loss) ($)1,2		Net realized and unrealized gain (loss) on invest- ments ($)			Total from invest- ment operations ($)			From net invest- ment income ($)			From net realized gain ($)			From capital paid-in ($)		Total distribu- tions ($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets (%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
08-31-2009		9.66		0.21		(1.36	)		(1.15	)		(0.21	)		(0.13	)		—		(0.34	)		8.17		(10.91	)5		1.03	6		0.61	7,8		2.96			8,596		28
08-31-2008		10.65		0.18		(0.92	)		(0.74	)		(0.14	)		(0.11	)		—		(0.25	)		9.66		(7.16	)5		1.43	6		0.63	7,9		1.74			2,776		10
08-31-200710		10.00		0.07		0.76			0.83			(0.09	)		(0.09	)		—		(0.18	)		10.65		8.37	5,11		2.19	6,13		0.63	13		0.86	13		836		9
CLASS R1
08-31-2009		9.62		0.20		(1.35	)		(1.15	)		(0.19	)		(0.13	)		—		(0.32	)		8.15		(11.15	)5		5.13	6		0.83	7,8		2.79			762		28
08-31-2008		10.63		0.16		(0.93	)		(0.77	)		(0.13	)		(0.11	)		—		(0.24	)		9.62		(7.41	)5		8.84	6		0.86	7,9		1.61			207		10
08-31-200710		10.00		0.11		0.69			0.80			(0.08	)		(0.09	)		—		(0.17	)		10.63		8.08	5,11,12		16.47	6,13		0.87	13		1.21	13		108		9
CLASS R3
08-31-2009		9.63		0.20		(1.36	)		(1.16	)		(0.19	)		(0.13	)		—		(0.32	)		8.15		(11.12	)5		2.59	6		0.77	7,8		2.81			763		28
08-31-2008		10.63		0.15		(0.91	)		(0.76	)		(0.13	)		(0.11	)		—		(0.24	)		9.63		(7.32	)5		6.20	6		0.81	7,9		1.48			693		10
08-31-200710		10.00		0.11		0.69			0.80			(0.08	)		(0.09	)		—		(0.17	)		10.63		8.10	5,11		16.38	6,13		0.80	13		1.28	13		108		9
CLASS R4
08-31-2009		9.65		0.21		(1.35	)		(1.14	)		(0.22	)		(0.13	)		—		(0.35	)		8.16		(10.83	)5		5.34	6		0.46	7,8		3.00			355		28
08-31-2008		10.65		0.21		(0.94	)		(0.73	)		(0.16	)		(0.11	)		—		(0.27	)		9.65		(7.06	)5		12.64	6		0.50	7,9		2.02			172		10
08-31-200710		10.00		0.14		0.69			0.83			(0.09	)		(0.09	)		—		(0.18	)		10.65		8.35	5,11		16.08	6,13		0.52	13		1.56	13		108		9
CLASS R5
08-31-2009		9.67		0.36		(1.48	)		(1.12	)		(0.25	)		(0.13	)		—		(0.38	)		8.17		(10.53	)5		5.04	6		0.20	7,8		4.98			103		28
08-31-2008		10.67		0.18		(0.88	)		(0.70	)		(0.19	)		(0.11	)		—		(0.30	)		9.67		(6.81	)5		5.09	6		0.22	7,9		1.81			464		10
08-31-200710		10.00		0.16		0.69			0.85			(0.09	)		(0.09	)		—		(0.18	)		10.67		8.61	5,11		15.77	6,13		0.23	13		1.84	13		109		9
CLASS 1
08-31-2009		9.68		0.25		(1.37	)		(1.12	)		(0.26	)		(0.13	)		—		(0.39	)		8.17		(10.54	)5		0.16	6		0.16	7,8		3.51			305,171		28
08-31-2008		10.68		0.21		(0.91	)		(0.70	)		(0.19	)		(0.11	)		—		(0.30	)		9.68		(6.80	)5		0.18	6		0.18	7		2.12			216,679		10
08-31-200710		10.00		0.10		0.76			0.86			(0.09	)		(0.09	)		—		(0.18	)		10.68		8.72	5,11		0.36	6,13		0.20	13		1.19	13		55,723		9

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 Portfolio was as follows:

Year ended	Lifecycle 2015
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.18%

8	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.
9	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
10	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
11	Not annualized.
12	The Adviser made a payment to the Portfolio of $6,640. Excluding this payment, total return would have been 7.98% for Class R1. There was no effect to the total returns for Class A, Class R3, Class R4, Class R5 and Class 1.
13	Annualized.

See notes to financial statements Annual report | Lifecycle Portfolios     45

FINANCIAL STATEMENTS

Financial highlights

Continued

Lifecycle 2010 Portfolio

Per share operating performance for a share outstanding throughout each period																											Ratios and supplemental data
			Income (loss) from investment operations								Less distributions																Ratios to average net assets
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 ($)			From net realized gain ($)			From capital paid-in ($)		Total distribu- tions ($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets (%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
08-31-2009		9.69		0.28		(1.20	)		(0.92	)		(0.26	)		(0.13	)		—		(0.39	)		8.38		(8.53	)5		1.22	6		0.64	7,8		3.75			5,637		31
08-31-2008		10.54		0.23		(0.83	)		(0.60	)		(0.16	)		(0.09	)		—		(0.25	)		9.69		(5.87	)5		1.61	6		0.65	7,9		2.28			2,050		14
08-31-200710		10.00		0.12		0.57			0.69			(0.09	)		(0.06	)		—		(0.15	)		10.54		6.99	5,11		2.45	6,13		0.63	13		1.42	13		665		17
CLASS R1
08-31-2009		9.66		0.25		(1.19	)		(0.94	)		(0.23	)		(0.13	)		—		(0.36	)		8.36		(8.82	)5		9.94	6		0.87	7,8		3.39			286		31
08-31-2008		10.52		0.23		(0.85	)		(0.62	)		(0.15	)		(0.09	)		—		(0.24	)		9.66		(6.02	)5		14.92	6		0.87	7,9		2.30			126		14
08-31-200710		10.00		0.15		0.52			0.67			(0.09	)		(0.06	)		—		(0.15	)		10.52		6.70	5,11		16.89	6,13		0.87	13		1.70	13		107		17
CLASS R3
08-31-2009		9.67		0.26		(1.19	)		(0.93	)		(0.24	)		(0.13	)		—		(0.37	)		8.37		(8.69	)5		2.34	6		0.79	7,8		3.48			1,260		31
08-31-2008		10.53		0.26		(0.88	)		(0.62	)		(0.15	)		(0.09	)		—		(0.24	)		9.67		(6.02	)5		3.95	6		0.82	7,9		2.64			795		14
08-31-200710		10.00		0.16		0.52			0.68			(0.09	)		(0.06	)		—		(0.15	)		10.53		6.82	5,11,12		16.81	6,13		0.80	13		1.77	13		107		17
CLASS R4
08-31-2009		9.69		0.29		(1.20	)		(0.91	)		(0.27	)		(0.13	)		—		(0.40	)		8.38		(8.40	)5		11.93	6		0.49	7,8		3.82			116		31
08-31-2008		10.55		0.26		(0.85	)		(0.59	)		(0.18	)		(0.09	)		—		(0.27	)		9.69		(5.76	)5		12.38	6		0.53	7,9		2.56			205		14
08-31-200710		10.00		0.18		0.52			0.70			(0.09	)		(0.06	)		—		(0.15	)		10.55		7.08	5,11,12		16.51	6,13		0.52	13		2.06	13		107		17
CLASS R5
08-31-2009		9.71		0.31		(1.20	)		(0.89	)		(0.30	)		(0.13	)		—		(0.43	)		8.39		(8.11	)5		5.86	6		0.20	7,8		4.12			207		31
08-31-2008		10.57		0.24		(0.80	)		(0.56	)		(0.21	)		(0.09	)		—		(0.30	)		9.71		(5.51	)5		10.30	6		0.25	7,9		2.41			498		14
08-31-200710		10.00		0.21		0.52			0.73			(0.10	)		(0.06	)		—		(0.16	)		10.57		7.33	5,11,12		16.20	6,13		0.23	13		2.34	13		107		17
CLASS 1
08-31-2009		9.72		0.30		(1.20	)		(0.90	)		(0.30	)		(0.13	)		—		(0.43	)		8.39		(8.15	)5		0.19	6		0.19	7,8		4.10			151,035		31
08-31-2008		10.57		0.26		(0.81	)		(0.55	)		(0.21	)		(0.09	)		—		(0.30	)		9.72		(5.41	)5		0.21	6		0.20	7		2.61			121,337		14
08-31-200710		10.00		0.16		0.57			0.73			(0.10	)		(0.06	)		—		(0.16	)		10.57		7.34	5,11		0.56	6,13		0.20	13		1.78	13		25,428		17

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 Portfolio was as follows:

Year ended	Lifecycle 2010
8/31/08	0.49%–1.13%
8/31/09	0.49%–1.09%

8	The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 4.
9	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
10	Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares began operations on 10-30-06.
11	Not annualized.
12	The Adviser made a payment to the Portfolio of $4,286. Excluding this payment, total returns would have been 6.72%, 6.97% and 7.23% for Class R3, Class R4 and Class R5, respectively. There was no effect to the total returns for Class A, Class R1 and Class 1.
13	Annualized.

46     Lifecycle Portfolios | Annual report See notes to financial statements

Notes to financial statements

1. Organization of the Trust

John Hancock Funds II (JHF II or the Trust) 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. The Trust 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 ninety-four separate investment funds, eight of which (collectively, Lifecycle Portfolios or the Portfolios, and individually the Portfolio) are presented in this report and are non-diversified for purposes of the 1940 Act.

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

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 SEC’s public reference room in Washington, D.C. The affiliated underlying funds are not covered by this report.

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

The JHF and JHF III funds are retail mutual funds advised by the Adviser and distributed by the Distributor.

The Trust currently offers multiple classes of shares of the Portfolios, including classes designated as Class A, Class R1, Class R3, Class R4, Class R5 and Class 1 shares. Class A shares are open to all retail investors. Class R1, Class R3, Class R4 and Class R5 shares are available only to certain retirement plans. Class 1 shares are sold only to certain affiliates of MFC. Effective at the close of business on August 21, 2009, Classes B, C and R2 merged into Class A and Class R merged into Class R1.

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.

At August 31, 2009, John Hancock USA owned shares of beneficial interest of the following Portfolios:

Portfolio	Class A	Class R1	Class R3	Class R4	Class R5	Total
Lifecycle 2045	10,527	21,272	—	10,752	10,813	53,364
Lifecycle 2040	—	10,604	—	10,763	—	21,367
Lifecycle 2035	—	—	—	—	—	—
Lifecycle 2030	—	—	—	10,759	—	10,759
Lifecycle 2025	—	10,630	—	—	—	10,630
Lifecycle 2020	—	—	—	10,876	—	10,876
Lifecycle 2015	—	10,827	—	11,004	—	21,831
Lifecycle 2010	—	21,793	—	—	—	21,793

2. Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, October 23, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Portfolios:

Security valuation

Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. Investments by the 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. All other securities held by the Portfolios 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. Certain short-term debt instruments are valued at amortized cost.

Annual report | Lifecycle Portfolios     47

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.

Fair value measurements. The Portfolios use a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

Level 1 — Exchange traded prices in active markets for identical securities and published net asset value for mutual funds. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights, options and futures.

Level 2 — Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities. Also, over-the-counter derivative contracts, including swaps, foreign forward currency contracts and certain options use these techniques.

Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Trust’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and are based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may not only use observable or unobservable inputs but may also include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

For the year ended August 31, 2009, all investments for all Portfolios are Level 1 under the hierarchy discussed above.

Security transactions and related investment income

Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income and distributions from underlying funds are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Portfolio becomes aware of the dividends from cash collections. Discounts/premiums are accreted/amortized for financial reporting purposes. Debt obligations may be placed in a nonaccrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivable when collection of all or a portion of interest has become doubtful, based upon consistently applied procedures. 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.

Overdrafts

Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to a Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio 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 Portfolio property that is not segregated, to the extent of any overdraft.

Expenses

The majority of expenses are directly identifiable to an individual Portfolio. Trust expenses that are not readily identifiable to a specific Portfolio are allocated in such a manner as deemed equitable, taking into consideration, among other things, the nature and type of the expense and the relative size of the Portfolios. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations

Income, common expenses and realized and unrealized gains (losses) are determined at the Portfolio level and allocated daily to each class of shares based on the appropriate net asset value of the respective class. Class-specific expenses, including distribution and service fees, transfer agent fees, state registration fees and printing and postage fees 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.

Federal income taxes

Each Portfolio intends 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.

For federal income tax purposes, certain Portfolios have 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 Portfolio, it will reduce the amount of capital gain distributions to be paid.

48     Lifecycle Portfolios | Annual report

At August 31, 2009, capital loss carryforwards available to offset future realized gains were as follows:

	Capital Loss Carryforwards
	Expiring at August 31
Portfolio	2017
Lifecycle 2045	$699,374
Lifecycle 2040	825,392
Lifecycle 2035	1,230,606
Lifecycle 2030	1,619,728
Lifecycle 2025	1,882,836
Lifecycle 2020	1,054,048
Lifecycle 2015	562,494
Lifecycle 2010	176,244

As of August 31, 2009, the Portfolios had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Portfolios’ federal tax returns filed in the three year period ended August 31, 2009 remain subject to examination by the Internal Revenue Service.

The cost of investments owned on August 31, 2009, including short-term investments, for federal income tax purposes, was as follows:

									Net Unrealized
				Unrealized		Unrealized			Appreciation
Portfolio		Aggregate Cost		Appreciation		Depreciation			(Depreciation	)
Lifecycle 2045	$	199,611,715	$	10,519,866	$	(14,899,403	)	$	(4,379,537	)
Lifecycle 2040		212,720,253		9,091,535		(17,491,330	)		(8,399,795	)
Lifecycle 2035		294,668,800		11,106,199		(25,506,546	)		(14,400,347	)
Lifecycle 2030		382,840,632		16,030,123		(35,601,910	)		(19,571,787	)
Lifecycle 2025		463,806,562		20,616,684		(43,142,156	)		(22,525,472	)
Lifecycle 2020		455,925,866		20,686,632		(39,670,940	)		(18,984,308	)
Lifecycle 2015		329,071,167		13,797,811		(27,133,300	)		(13,335,489	)
Lifecycle 2010		168,317,367		5,404,117		(15,113,780	)		(9,709,663	)

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 Portfolios generally declare and pay income dividends and capital gain distributions, if any, annually. Distributions paid by the Portfolios with respect to each class of shares are calculated in the same manner, at the same time and are in the same amount, except for the effect of expenses that may be applied differently to each share class. During the year ended August 31, 2009, the tax character of distributions paid was as follows:

		Ordinary		Long Term
Portfolio		Income		Capital Gains		Total
Lifecycle 2045	$	1,996,382	$	962,229	$	2,958,611
Lifecycle 2040		2,318,546		1,157,256		3,475,802
Lifecycle 2035		3,129,842		2,042,797		5,172,639
Lifecycle 2030		4,339,839		2,553,593		6,893,432
Lifecycle 2025		7,203,403		2,908,069		10,111,472
Lifecycle 2020		9,213,352		2,411,072		11,624,424
Lifecycle 2015		8,921,945		1,763,044		10,684,989
Lifecycle 2010		5,712,057		855,324		6,567,381

During the year ended August 31, 2008, the tax character of distributions paid was as follows:

		Ordinary		Long Term
Portfolio		Income		Capital Gains		Total
Lifecycle 2045	$	830,254	$	64,011	$	894,265
Lifecycle 2040		984,508		72,022		1,056,530
Lifecycle 2035		1,559,943		45,027		1,604,970
Lifecycle 2030		2,060,557		—		2,060,557
Lifecycle 2025		2,911,516		—		2,911,516
Lifecycle 2020		2,946,493		—		2,946,493
Lifecycle 2015		2,722,896		—		2,722,896
Lifecycle 2010		1,589,726		—		1,589,726

Annual report | Lifecycle Portfolios     49

As of August 31, 2009, the components of distributable earnings on a tax basis were as follows:

			Undistributed
		Undistributed	Long Term		Capital Loss		Post-October
Portfolio		Ordinary Income	Capital Gains		Carryforward		Deferral
Lifecycle 2045	$	56,428	—	$	699,374	$	5,008,619
Lifecycle 2040		56,790	—		825,392		5,442,113
Lifecycle 2035		96,504	—		1,230,606		8,775,162
Lifecycle 2030		177,163	—		1,619,728		14,259,853
Lifecycle 2025		834,691	—		1,882,836		23,155,749
Lifecycle 2020		1,694,496	—		1,054,048		22,705,308
Lifecycle 2015		2,232,533	—		562,494		21,745,873
Lifecycle 2010		1,514,823	—		176,244		10,644,620

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 Portfolio’s financial statements as a return of capital. Net capital losses that are attributable to security transactions incurred after October 31, 2008 (Post-October Deferral), are treated as arising on September 1, 2009, the first day of the Portfolio’s next taxable year.

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 be reversed in a subsequent period. For the year ended August 31, 2009, there were no permanent book/tax differences.

3. Guarantees and indemnifications

Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the 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.

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 subadvisers 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 a fund of JHF II or JHF III (Affiliated Fund Assets) and (b) a fee on assets not invested in a fund of JHF II or JHF III (Other Assets).

Under the Advisory Agreement, the Portfolios pay a daily management fee to the Adviser as stated below:

The fee on assets invested in a fund of JHF II or JHF III 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 held by each Portfolio.

	First $7.5 billion of	Excess over $7.5 billion
Portfolio	Aggregate Net Assets	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.

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

MFC Global Investment Management (U.S.A.) Limited acts as Subadviser to the Lifecycle Portfolios. The Portfolios are not responsible for the payment of subadvisory fees. The investment management fees incurred for the year ended August 31, 2009 were equivalent to an annual effective rate of each Portfolio’s average daily net assets as follows:

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

50     Lifecycle Portfolios | Annual report

Expense reimbursements

The Adviser has contractually agreed to reimburse for certain Portfolio level expenses (excluding management fees, underlying fund expenses, Rule 12b-1 fees, transfer agency fees, service plan fees, state registration fees, printing and postage fees, taxes, 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 Portfolios) that exceed 0.09% of the average annual net assets. Also, the Adviser has agreed to contractually limit certain class-specific expenses to 0.50% for Class A and 0.05% for Class 1 for the Lifecycle funds. These expense reimbursements shall continue in effect until December 31, 2009, and thereafter until terminated by the Adviser on notice to JHF II.

In addition, effective April 1, 2009, the adviser has agreed to contractually limit certain class-specific expenses to 0.65% for Class R1, 0.60% for Class R3 (0.55% for Lifecycle 2045 and Lifecycle 2040), 0.30% for Class R4 and 0.00% for Class R5. These reimbursements will continue in effect until March 31, 2010 and thereafter, until terminated by the Adviser on notice to the Trust. Prior to April 1, 2009, the class-specific expense limits were as follows: 0.80% for Class R1, 0.70% for Class R3, 0.40% for Class R4 and 0.10% for Class R5.

For the year ended August 31, 2009, 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 R1	Class R3	Class R4	Class R5	Class 1	Merged Classes	Total
Lifecycle 2045	$14,917	$10,652	$10,740	$10,464	$10,615	$485	$45,813	$103,686
Lifecycle 2040	14,400	10,943	11,815	10,513	10,918	1	45,895	104,485
Lifecycle 2035	14,438	10,941	10,845	10,517	10,692	1	46,403	103,837
Lifecycle 2030	15,360	11,241	11,024	10,470	11,348	—	46,292	105,735
Lifecycle 2025	14,619	11,221	11,313	10,493	10,842	1	46,672	105,161
Lifecycle 2020	13,588	11,779	11,303	10,496	10,990	—	47,526	105,682
Lifecycle 2015	13,496	11,072	10,996	10,448	10,559	—	45,908	102,479
Lifecycle 2010	12,001	10,450	11,126	10,445	10,495	9	45,284	99,810

Expense recapture

Effective January 1, 2009, the Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursements or waivers occurred. For the year ended August 31, 2009, the Portfolios did not recapture any expenses. The amounts of waived or reimbursed expenses subject to potential recovery through 2012 are as follows:

	Reimbursement Amount
Portfolio	Subject to Recapture
Lifecycle 2045	$41,357
Lifecycle 2040	$41,838
Lifecycle 2035	$40,984
Lifecycle 2030	$42,476
Lifecycle 2025	$41,331
Lifecycle 2020	$40,504
Lifecycle 2015	$39,734
Lifecycle 2010	$38,053

Accounting and legal services fees

Pursuant to the Service Agreement, the Portfolios reimburse the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Portfolios, including the preparation of all tax returns, 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 accounting and legal services fees incurred for the year ended August 31, 2009, were equivalent to an annual effective rate of 0.02% 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 R1, 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 not to exceed 0.30%, 0.50%, 0.50%, 0.25% and 0.05% of the average daily net assets of Class A, Class R1, 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. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

Annual report | Lifecycle Portfolios     51

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

Sales charges

Class A shares are assessed upfront sales charges of up to 5% of the net asset value of such shares. The following summarizes the net upfront sales charges received by the Distributor during the year ended August 31, 2009:

	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle	Lifecycle
	2045	2040	2035	2030	2025	2020	2015	2010
Net Sales Charges	$13,191	$13,842	$20,487	$29,490	$29,031	$100,255	$29,259	$15,000
Retained for Printing Prospectuses, advertising and sales literature	1,980	2,008	3,091	4,450	4,421	16,546	4,572	2,357
Sales commission to unrelated broker-dealers	11,054	11,754	17,357	24,903	24,425	77,565	24,660	12,539
Sales commission to affiliated sales personnel	157	80	39	137	185	6,144	27	104

Transfer agent fees

The Portfolios have a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. The transfer agent fees are made up of three components:

• The Fund pays a monthly transfer agent fee at an annual rate of 0.05% of each class’s average daily net assets for all classes;

• a monthly fee based on an annual rate of $16.50 per shareholder account; and

• Signature Services is reimbursed for certain out-of-pocket expenses.

Signature Services contractually agreed to limit the transfer agent fees so that such fees do not exceed 0.20% annually of Class A, Class R1, Class R3, Class R4 and Class R5 shares’ average daily net assets until December 31, 2008, after which it expired.

	Transfer agent fee reduction by class
				Merged
Portfolio	Class A	Class R1	Class R3	Classes	Total
Lifecycle 2045	$1,425	$22	$17	$866	$2,330
Lifecycle 2040	1,174	—	—	982	2,156
Lifecycle 2035	1,237	8	4	895	2,144
Lifecycle 2030	1,332	—	—	835	2,167
Lifecycle 2025	619	—	—	846	1,465
Lifecycle 2020	951	—	—	784	1,735
Lifecycle 2015	574	24	—	521	1,119
Lifecycle 2010	216	18	—	416	650

The Portfolios may receive earnings credits from the transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Portfolios’ transfer agent fees and out of pocket expenses. During the year ended August 31, 2009, there were no earnings credits received by the Portfolios.

Class level expenses for the year ended August 31, 2009, were as follows:

		Distribution and		Transfer		State registration		Printing and
Portfolio	Share class	service fees		agent fees		fees		postage fees
Lifecycle 2045	Class A	$	3,847	$	7,795	$	10,485	$	628
	Class R1		1,456		587		10,367		2
	Class R3		1,113		445		10,367		1
	Class R4		500		234		10,367		1
	Class R5		64		257		10,367		2
	Class 1		57,779		—		—		—
	Merged Classes		7,627		4,945		43,072		363
	Total	$	72,386	$	14,263	$	95,025	$	997

52     Lifecycle Portfolios | Annual report

		Distribution and		Transfer		State registration		Printing and
Portfolio	Share class		service fees		agent fees		fees		postage fees
Lifecycle 2040	Class A	$	4,764	$	7,161	$	10,343	$	1,245
	Class R1		2,116		580		10,367		1
	Class R3		6,346		914		10,367		444
	Class R4		466		257		10,367		2
	Class R5		226		439		10,367		146
	Class 1		62,060		—		—		—
	Merged Classes		8,986		5,230		43,168		456
	Total	$	84,964	$	14,581	$	94,979	$	2,294
Lifecycle 2035	Class A	$	7,034	$	8,741	$	10,348	$	1,276
	Class R1		2,128		624		10,373		1
	Class R3		1,825		536		10,373		10
	Class R4		395		165		10,373		1
	Class R5		33		255		10,477		2
	Class 1		86,644		—		—		—
	Merged Classes		12,704		5,457		43,113		744
	Total	$	110,763	$	15,778	$	95,057	$	2,034
Lifecycle 2030	Class A	$	11,013	$	11,280	$	10,982	$	1,773
	Class R1		3,829		674		10,367		54
	Class R3		2,955		722		10,367		68
	Class R4		568		249		10,367		2
	Class R5		355		524		10,516		372
	Class 1		113,708		—		—		—
	Merged Classes		21,039		6,798		43,207		1,018
	Total	$	153,467	$	20,247	$	95,806	$	3,287
Lifecycle 2025	Class A	$	11,796	$	10,117	$	10,917	$	2,068
	Class R1		3,443		697		10,367		7
	Class R3		5,280		799		10,367		187
	Class R4		440		186		10,367		2
	Class R5		106		289		10,576		1
	Class 1		143,200		—		—		—
	Merged Classes		18,987		6,788		43,075		1,108
	Total	$	183,252	$	18,876	$	95,669	$	3,373
Lifecycle 2020	Class A	$	16,337	$	12,273	$	10,910	$	2,246
	Class R1		6,899		987		10,420		121
	Class R3		4,792		737		10,420		215
	Class R4		402		205		10,420		1
	Class R5		164		421		10,525		214
	Class 1		140,831		—		—		—
	Merged Classes		28,452		8,105		43,646		1,476
	Total	$	197,877	$	22,728	$	96,341	$	4,273
Lifecycle 2015	Class A	$	9,784	$	8,298	$	10,717	$	1,577
	Class R1		1,896		667		10,384		1
	Class R3		3,845		553		10,384		166
	Class R4		607		193		10,384		1
	Class R5		109		242		10,384		2
	Class 1		108,490		—		—		—
	Merged Classes		22,707		6,227		43,266		1,145
	Total	$	147,438	$	16,180	$	95,519	$	2,892
Lifecycle 2010	Class A	$	6,157	$	4,889	$	10,463	$	967
	Class R1		594		343		10,367		2
	Class R3		4,618		629		10,367		181
	Class R4		278		122		10,367		2
	Class R5		62		130		10,396		26
	Class 1		58,107		—		—		—
	Merged Classes		16,095		4,153		43,421		1,072
	Total	$	85,911	$	10,266	$	95,381	$	2,250

5. Trustee 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.

Annual report | Lifecycle Portfolios     53

6. Portfolio share transactions

Share transactions for the Portfolios for the years ended August 31, 2009 and 2008, were as follows:

Lifecycle 2045 Portfolio

			Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	229,021		$	1,543,975		98,037		$	1,018,036
Issued in class	170,233			1,335,003		—			—
Distributions reinvested	3,299			19,894		2,858			30,538
Repurchased	(149,241	)		(1,077,278	)	(27,860	)		(285,948	)
Net increase	253,312		$	1,821,594		73,035		$	762,626
Class B1 shares
Sold	13,970		$	102,558		28,315		$	293,920
Redeemed in class	(38,259	)		(297,616	)	—			—
Distributions reinvested	621			3,746		316			3,363
Repurchased	(5,449	)		(29,624	)	(12,813	)		(127,822	)
Net increase (decrease)	(29,117	)	$	(220,936	)	15,818		$	169,461
Class C1 shares
Sold	14,614		$	116,420		6,278		$	66,271
Redeemed in class	(34,573	)		(268,750	)	—			—
Distributions reinvested	480			2,897		292			3,103
Repurchased	(508	)		(3,272	)	(560	)		(5,554	)
Net increase (decrease)	(19,987	)	$	(152,705	)	6,010		$	63,820
Class R1 shares
Sold	19,637		$	133,997		7,021		$	71,102
Redeemed in class	(34,994	)		(272,677	)	—			—
Distributions reinvested	380			2,295		232			2,465
Repurchased	(3,318	)		(21,063	)	(11	)		(109	)
Net increase (decrease)	(18,295	)	$	(157,448	)	7,242		$	73,458
Class R1 shares
Sold	29,624		$	207,566		8,488		$	85,788
Issued in class	34,911			272,677		—			—
Distributions reinvested	639			3,855		214			2,286
Repurchased	(4,672	)		(32,120	)	(65	)		(633	)
Net increase	60,502		$	451,978		8,637		$	87,441
Class R21 shares
Sold	76,052		$	499,397		43,295		$	431,933
Redeemed in class	(98,209	)		(768,637	)	—			—
Distributions reinvested	1,518			9,174		314			3,359
Repurchased	(22,159	)		(149,381	)	(11,469	)		(114,671	)
Net increase (decrease)	(42,798	)	$	(409,447	)	32,140		$	320,621
Class R3 shares
Sold	15,308		$	101,575		21,803		$	217,375
Distributions reinvested	601			3,627		295			3,144
Repurchased	(12,221	)		(106,986	)	(3,120	)		(31,851	)
Net increase (decrease)	3,688		$	(1,784	)	18,978		$	188,668
Class R4 shares
Sold	29,331		$	192,923		5,216		$	52,001
Distributions reinvested	640			3,867		216			2,312
Repurchased	(3,056	)		(20,000	)	(872	)		(8,736	)
Net increase	26,915		$	176,790		4,560		$	45,577
Class R5 shares
Sold	11,408		$	78,765		6,695		$	68,210
Distributions reinvested	661			3,990		225			2,408
Repurchased	(1,080	)		(6,920	)	(391	)		(3,782	)
Net increase	10,989		$	75,835		6,529		$	66,836
Class 1 shares
Sold	13,894,735		$	91,138,785		7,983,512		$	82,402,161
Distributions reinvested	480,327			2,901,172		78,533			841,091
Repurchased	(133,787	)		(864,726	)	(11,424	)		(126,806	)
Net increase	14,241,275		$	93,175,231		8,050,621		$	83,116,446
Net increase	14,486,484		$	94,759,108		8,223,570		$	84,894,954

54     Lifecycle Portfolios | Annual report

Lifecycle 2040 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	307,579		$	2,081,884		118,633		$	1,239,743
Issued in class	201,887			1,579,502		—			—
Distributions reinvested	4,650			28,038		1,861			19,890
Repurchased	(74,687	)		(486,334	)	(42,305	)		(422,298	)
Net increase	439,429		$	3,203,090		78,189		$	837,335
Class B1 shares
Sold	20,105		$	126,508		23,684		$	251,706
Redeemed in class	(41,499	)		(322,722	)	—			—
Distributions reinvested	528			3,178		439			4,680
Repurchased	(4,740	)		(34,298	)	(12,894	)		(129,491	)
Net increase (decrease)	(25,606	)	$	(227,334	)	11,229		$	126,895
Class C1 shares
Sold	43,613		$	267,683		25,422		$	260,996
Redeemed in class	(66,426	)		(516,364	)	—			—
Distributions reinvested	782			4,706		323			3,444
Repurchased	(2,802	)		(17,490	)	(12,536	)		(125,786	)
Net increase (decrease)	(24,833	)	$	(261,465	)	13,209		$	138,654
Class R1 shares
Sold	31,048		$	205,810		4,253		$	43,142
Redeemed in class	(41,538	)		(323,657	)	—			—
Distributions reinvested	376			2,266		222			2,371
Repurchased	(4,823	)		(32,106	)	(79	)		(750	)
Net increase (decrease)	(14,937	)	$	(147,687	)	4,396		$	44,763
Class R1 shares
Sold	36,395		$	238,132		20,931		$	215,989
Issued in class	41,423			323,657		—			—
Distributions reinvested	597			3,598		294			3,141
Repurchased	(5,513	)		(33,458	)	(10,475	)		(99,534	)
Net increase	72,902		$	531,929		10,750		$	119,596
Class R21 shares
Sold	43,242		$	280,858		62,292		$	616,164
Redeemed in class	(94,651	)		(740,416	)	—			—
Distributions reinvested	2,102			12,672		582			6,223
Repurchased	(25,467	)		(173,260	)	(13,108	)		(131,647	)
Net increase (decrease)	(74,774	)	$	(620,146	)	49,766		$	490,740
Class R3 shares
Sold	79,740		$	527,333		128,579		$	1,248,512
Distributions reinvested	3,824			23,022		489			5,218
Repurchased	(43,415	)		(279,770	)	(18,094	)		(178,830	)
Net increase	40,149		$	270,585		110,974		$	1,074,900
Class R4 shares
Sold	13,824		$	88,979		11,713		$	118,813
Distributions reinvested	648			3,908		224			2,393
Repurchased	(74	)		(496	)	(4,073	)		(42,234	)
Net increase	14,398		$	92,391		7,864		$	78,972
Class R5 shares
Sold	19,850		$	131,531		85,659		$	842,514
Distributions reinvested	2,475			14,951		239			2,561
Repurchased	(16,221	)		(95,430	)	(30,558	)		(297,549	)
Net increase	6,104		$	51,052		55,340		$	547,526
Class 1 shares
Sold	13,144,771		$	86,196,741		9,191,245		$	95,022,350
Distributions reinvested	559,163			3,371,754		93,889			1,006,487
Repurchased	(54,593	)		(417,267	)	(20,936	)		(234,174	)
Net increase	13,649,341		$	89,151,228		9,264,198		$	95,794,663
Net increase	14,082,173		$	92,043,643		9,605,915		$	99,254,044

Annual report | Lifecycle Portfolios     55

Lifecycle 2035 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	366,112		$	2,458,929		196,006		$	2,041,324
Issued in class	264,955			2,079,523		—			—
Distributions reinvested	8,529			51,600		1,672			17,849
Repurchased	(97,826	)		(627,225	)	(31,220	)		(324,132	)
Net increase	541,770		$	3,962,827		166,458		$	1,735,041
Class B1 shares
Sold	23,555		$	146,705		40,058		$	425,469
Redeemed in class	(70,038	)		(546,825	)	—			—
Distributions reinvested	1,313			7,945		874			9,356
Repurchased	(13,027	)		(81,697	)	(18,788	)		(199,268	)
Net increase (decrease)	(58,197	)	$	(473,872	)	22,144		$	235,557
Class C1 shares
Sold	32,575		$	211,238		25,658		$	279,939
Redeemed in class	(55,314	)		(431,814	)	—			—
Distributions reinvested	799			4,837		536			5,740
Repurchased	(12,472	)		(76,564	)	(13,968	)		(150,848	)
Net increase (decrease)	(34,412	)	$	(292,303	)	12,226		$	134,831
Class R1 shares
Sold	31,214		$	206,628		19,880		$	201,125
Redeemed in class	(32,327	)		(252,793	)	—			—
Distributions reinvested	404			2,447		229			2,452
Repurchased	(7,579	)		(50,054	)	(22,220	)		(227,053	)
Net decrease	(8,288	)	$	(93,772	)	(2,111	)	$	(23,476	)
Class R1 shares
Sold	47,818		$	361,428		18,677		$	191,534
Issued in class	32,236			252,793		—			—
Distributions reinvested	534			3,229		217			2,332
Repurchased	(15,988	)		(102,152	)	(10,610	)		(101,427	)
Net increase	64,600		$	515,298		8,284		$	92,439
Class R21 shares
Sold	63,296		$	419,564		142,396		$	1,398,517
Redeemed in class	(140,202	)		(1,100,884	)	—			—
Distributions reinvested	4,320			26,138		306			3,297
Repurchased	(71,182	)		(460,363	)	(12,781	)		(129,019	)
Net increase (decrease)	(143,768	)	$	(1,115,545	)	129,921		$	1,272,795
Class R3 shares
Sold	28,944		$	193,354		29,045		$	298,140
Distributions reinvested	993			6,009		285			3,058
Repurchased	(1,053	)		(6,658	)	(10,473	)		(100,269	)
Net increase	28,884		$	192,705		18,857		$	200,929
Class R4 shares
Sold	15,000		$	100,049		18,345		$	182,548
Distributions reinvested	438			2,656		224			2,407
Repurchased	(14,870	)		(122,851	)	(5,947	)		(56,797	)
Net increase (decrease)	568		$	(20,146	)	12,622		$	128,158
Class R5 shares
Sold	15,553		$	104,010		15,402		$	159,749
Distributions reinvested	758			4,591		250			2,698
Repurchased	(6,389	)		(42,503	)	(10,996	)		(110,754	)
Net increase	9,922		$	66,098		4,656		$	51,693
Class 1 shares
Sold	17,516,859		$	116,193,783		13,037,246		$	136,162,654
Distributions reinvested	834,103			5,054,667		144,091			1,554,738
Repurchased	(173,716	)		(1,215,980	)	(104,135	)		(1,123,302	)
Net increase	18,177,246		$	120,032,470		13,077,202		$	136,594,090
Net increase	18,578,325		$	122,773,760		13,450,259		$	140,422,057

56     Lifecycle Portfolios | Annual report

Lifecycle 2030 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	517,759		$	3,514,857		289,702		$	3,012,936
Issued in class	496,321			3,881,343		—			—
Distributions reinvested	14,663			88,422		2,865			30,623
Repurchased	(174,060	)		(1,183,846	)	(47,030	)		(492,880	)
Net increase	854,683		$	6,300,776		245,537		$	2,550,679
Class B1 shares
Sold	97,976		$	670,934		47,041		$	478,082
Redeemed in class	(142,045	)		(1,107,266	)	—			—
Distributions reinvested	1,516			9,160		396			4,233
Repurchased	(12,470	)		(93,808	)	(19,905	)		(208,883	)
Net increase (decrease)	(55,023	)	$	(520,980	)	27,532		$	273,432
Class C1 shares
Sold	101,600		$	690,300		31,099		$	324,051
Redeemed in class	(142,763	)		(1,114,055	)	—			—
Distributions reinvested	1,551			9,370		578			6,169
Repurchased	(11,889	)		(86,715	)	(31,005	)		(323,375	)
Net increase (decrease)	(51,501	)	$	(501,100	)	672		$	6,845
Class R1 shares
Sold	75,532		$	500,822		12,120		$	122,761
Redeemed in class	(77,815	)		(606,314	)	—			—
Distributions reinvested	551			3,325		221			2,357
Repurchased	(22,361	)		(176,204	)	(274	)		(2,721	)
Net increase (decrease)	(24,093	)	$	(278,371	)	12,067		$	122,397
Class R1 shares
Sold	59,596		$	406,778		34,528		$	347,211
Issued in class	77,741			606,314		—			—
Distributions reinvested	1,912			11,513		208			2,217
Repurchased	(12,104	)		(91,401	)	(11,401	)		(112,864	)
Net increase	127,145		$	933,204		23,335		$	236,564
Class R21 shares
Sold	138,277		$	956,649		144,745		$	1,413,285
Redeemed in class	(212,775	)		(1,660,022	)	—			—
Distributions reinvested	5,744			34,577		331			3,534
Repurchased	(71,156	)		(462,320	)	(18,261	)		(179,343	)
Net increase (decrease)	(139,910	)	$	(1,131,116	)	126,815		$	1,237,476
Class R3 shares
Sold	35,638		$	240,343		78,378		$	829,159
Distributions reinvested	1,847			11,121		932			9,945
Repurchased	(29,722	)		(238,267	)	(18,674	)		(198,780	)
Net increase	7,763		$	13,197		60,636		$	640,324
Class R4 shares
Sold	33,652		$	213,678		2,214		$	22,031
Distributions reinvested	1,064			6,406		210			2,244
Repurchased	(334	)		(1,826	)	(629	)		(6,325	)
Net increase	34,382		$	218,258		1,795		$	17,950
Class R5 shares
Sold	52,792		$	333,340		149,048		$	1,451,436
Distributions reinvested	3,960			23,761		241			2,567
Repurchased	(35,278	)		(232,575	)	(54,791	)		(530,702	)
Net increase	21,474		$	124,526		94,498		$	923,301
Class 1 shares
Sold	21,292,383		$	139,783,901		18,232,119		$	187,652,703
Distributions reinvested	1,115,358			6,692,147		187,107			1,996,434
Repurchased	(138,463	)		(897,765	)	(49,768	)		(528,520	)
Net increase	22,269,278		$	145,578,283		18,369,458		$	189,120,617
Net increase	23,044,198		$	150,736,677		18,962,345		$	195,129,585

Annual report | Lifecycle Portfolios     57

Lifecycle 2025 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	546,527		$	3,715,152		361,450		$	3,703,251
Issued in class	394,887			3,126,927		—			—
Distributions reinvested	17,730			108,862		1,640			17,449
Repurchased	(138,705	)		(931,494	)	(47,605	)		(488,900	)
Net increase	820,439		$	6,019,447		315,485		$	3,231,800
Class B1 shares
Sold	66,594		$	424,209		60,998		$	632,404
Redeemed in class	(129,323	)		(1,020,540	)	—			—
Distributions reinvested	2,030			12,487		322			3,416
Repurchased	(9,291	)		(59,775	)	(15,122	)		(157,598	)
Net increase (decrease)	(69,990	)	$	(643,619	)	46,198		$	478,222
Class C1 shares
Sold	50,775		$	355,007		63,029		$	658,808
Redeemed in class	(105,394	)		(831,711	)	—			—
Distributions reinvested	2,235			13,748		344			3,655
Repurchased	(19,653	)		(130,661	)	(12,783	)		(133,371	)
Net increase (decrease)	(72,037	)	$	(593,617	)	50,590		$	529,092
Class R1 shares
Sold	57,997		$	397,066		4,088		$	41,973
Redeemed in class	(64,033	)		(505,063	)	—			—
Distributions reinvested	655			4,021		185			1,963
Repurchased	(9,375	)		(61,014	)	(7	)		(66	)
Net increase (decrease)	(14,756	)	$	(164,990	)	4,266		$	43,870
Class R1 shares
Sold	81,791		$	586,872		32,763		$	329,022
Issued in class	63,986			505,063		—			—
Distributions reinvested	1,245			7,634		232			2,456
Repurchased	(24,434	)		(156,018	)	(13,265	)		(126,697	)
Net increase	122,588		$	943,551		19,730		$	204,781
Class R21 shares
Sold	73,262		$	487,756		178,139		$	1,738,279
Redeemed in class	(161,546	)		(1,274,676	)	—			—
Distributions reinvested	4,816			29,476		391			4,146
Repurchased	(95,137	)		(673,953	)	(10,732	)		(113,356	)
Net increase (decrease)	(178,605	)	$	(1,431,397	)	167,798		$	1,629,069
Class R3 shares
Sold	161,475		$	1,015,788		54,594		$	577,342
Distributions reinvested	2,262			13,867		855			9,067
Repurchased	(35,703	)		(214,461	)	(24,749	)		(248,136	)
Net increase	128,034		$	815,194		30,700		$	338,273
Class R4 shares
Sold	22,725		$	153,992		11,846		$	119,032
Distributions reinvested	621			3,803		220			2,339
Repurchased	(11,951	)		(106,001	)	(594	)		(6,004	)
Net increase	11,395		$	51,794		11,472		$	115,367
Class R5 shares
Sold	35,934		$	227,122		30,069		$	309,143
Distributions reinvested	1,414			8,641		254			2,694
Repurchased	(24,077	)		(159,502	)	(10,901	)		(108,814	)
Net increase	13,271		$	76,261		19,422		$	203,023
Class 1 shares
Sold	24,268,616		$	164,106,191		22,895,610		$	235,338,535
Distributions reinvested	1,620,343			9,900,298		269,249			2,856,733
Repurchased	(622,833	)		(4,316,869	)	(45,102	)		(470,040	)
Net increase	25,266,126		$	169,689,620		23,119,757		$	237,725,228
Net increase	26,026,465		$	174,762,244		23,785,418		$	244,498,725

58     Lifecycle Portfolios | Annual report

Lifecycle 2020 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	843,398		$	5,840,412		346,873		$	3,614,886
Issued in class	567,982			4,597,659		—			—
Distributions reinvested	24,115			152,168		4,411			46,760
Repurchased	(257,578	)		(1,776,958	)	(45,096	)		(464,080	)
Net increase	1,177,917		$	8,813,281		306,188		$	3,197,566
Class B1 shares
Sold	89,162		$	596,442		101,666		$	1,062,506
Redeemed in class	(194,540	)		(1,572,500	)	—			—
Distributions reinvested	4,351			27,498		1,050			11,135
Repurchased	(32,084	)		(236,191	)	(26,115	)		(267,174	)
Net increase (decrease)	(133,111	)	$	(1,184,751	)	76,601		$	806,467
Class C1 shares
Sold	111,994		$	801,109		79,442		$	833,142
Redeemed in class	(170,215	)		(1,374,827	)	—			—
Distributions reinvested	3,553			22,452		837			8,877
Repurchased	(63,252	)		(451,361	)	(19,431	)		(201,977	)
Net increase (decrease)	(117,920	)	$	(1,002,627	)	60,848		$	640,042
Class R1 shares
Sold	46,005		$	302,437		20,925		$	221,867
Redeemed in class	(49,389	)		(398,486	)	—			—
Distributions reinvested	1,038			6,550		383			4,053
Repurchased	(19,700	)		(127,322	)	(10,349	)		(103,704	)
Net increase (decrease)	(22,046	)	$	(216,821	)	10,959		$	122,216
Class R1 shares
Sold	147,687		$	1,170,558		30,910		$	311,811
Issued in class	49,324			398,486		—			—
Distributions reinvested	3,791			23,881		205			2,165
Repurchased	(18,534	)		(121,897	)	(15,236	)		(146,814	)
Net increase	182,268		$	1,471,028		15,879		$	167,162
Class R21 shares
Sold	158,681		$	1,104,503		156,560		$	1,552,843
Redeemed in class	(204,215	)		(1,650,332	)	—			—
Distributions reinvested	7,295			45,961		418			4,418
Repurchased	(119,590	)		(847,189	)	(18,955	)		(192,751	)
Net increase (decrease)	(157,829	)	$	(1,347,057	)	138,023		$	1,364,510
Class R3 shares
Sold	42,845		$	295,131		102,114		$	1,086,512
Distributions reinvested	4,425			27,878		1,002			10,614
Repurchased	(21,774	)		(141,477	)	(28,981	)		(303,910	)
Net increase	25,496		$	181,532		74,135		$	793,216
Class R4 shares
Sold	16,780		$	115,799		4,387		$	44,331
Distributions reinvested	796			5,017		230			2,435
Repurchased	(232	)		(1,537	)	(439	)		(4,410	)
Net increase	17,344		$	119,279		4,178		$	42,356
Class R5 shares
Sold	16,798		$	115,596		64,772		$	632,997
Distributions reinvested	4,154			26,127		378			4,002
Repurchased	(5,257	)		(30,146	)	(11,818	)		(123,740	)
Net increase	15,695		$	111,577		53,332		$	513,259
Class 1 shares
Sold	22,631,842		$	156,559,554		22,479,297		$	232,024,606
Distributions reinvested	1,791,509			11,268,593		268,281			2,841,099
Repurchased	(833,821	)		(5,768,240	)	(164,608	)		(1,816,093	)
Net increase	23,589,530		$	162,059,907		22,582,970		$	233,049,612
Net increase	24,577,344		$	169,005,348		23,323,113		$	240,696,406

Annual report | Lifecycle Portfolios     59

Lifecycle 2015 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	496,481		$	3,592,049		256,050		$	2,615,937
Issued in class	460,316			3,769,840		—			—
Distributions reinvested	20,774			133,990		2,745			28,683
Repurchased	(212,468	)		(1,467,009	)	(49,748	)		(505,001	)
Net increase	765,103		$	6,028,870		209,047		$	2,139,619
Class B1 shares
Sold	45,711		$	308,201		69,878		$	711,535
Redeemed in class	(129,739	)		(1,060,260	)	—			—
Distributions reinvested	4,076			26,402		783			8,177
Repurchased	(13,948	)		(96,432	)	(19,999	)		(206,216	)
Net increase (decrease)	(93,900	)	$	(822,089	)	50,662		$	513,496
Class C1 shares
Sold	117,378		$	838,380		72,676		$	739,069
Redeemed in class	(147,565	)		(1,205,250	)	—			—
Distributions reinvested	4,146			26,826		452			4,728
Repurchased	(53,252	)		(353,757	)	(18,472	)		(192,134	)
Net increase (decrease)	(79,293	)	$	(693,801	)	54,656		$	551,663
Class R1 shares							��
Sold	54,171		$	363,720		7,380		$	75,071
Redeemed in class	(51,647	)		(421,825	)	—			—
Distributions reinvested	846			5,465		222			2,314
Repurchased	(20,997	)		(140,771	)	(383	)		(3,724	)
Net increase (decrease)	(17,627	)	$	(193,411	)	7,219		$	73,661
Class R1 shares
Sold	40,523		$	286,908		21,618		$	223,188
Issued in class	51,584			421,825		—			—
Distributions reinvested	1,140			7,367		391			4,081
Repurchased	(21,359	)		(151,325	)	(10,670	)		(102,139	)
Net increase	71,888		$	564,775		11,339		$	125,130
Class R21 shares
Sold	188,699		$	1,321,711		121,562		$	1,195,474
Redeemed in class	(184,129	)		(1,504,330	)	—			—
Distributions reinvested	7,027			45,326		510			5,315
Repurchased	(136,323	)		(949,176	)	(12,505	)		(124,199	)
Net increase (decrease)	(124,726	)	$	(1,086,469	)	109,567		$	1,076,590
Class R3 shares
Sold	57,679		$	408,695		71,912		$	731,743
Distributions reinvested	3,473			22,438		321			3,353
Repurchased	(39,547	)		(263,835	)	(10,414	)		(99,769	)
Net increase	21,605		$	167,298		61,819		$	635,327
Class R4 shares
Sold	27,727		$	195,515		8,080		$	80,771
Distributions reinvested	1,311			8,458		261			2,726
Repurchased	(3,377	)		(23,477	)	(706	)		(7,076	)
Net increase	25,661		$	180,496		7,635		$	76,421
Class R5 shares
Sold	8,051		$	59,632		61,469		$	625,889
Distributions reinvested	2,734			17,607		288			3,004
Repurchased	(46,068	)		(289,507	)	(23,994	)		(240,340	)
Net increase (decrease)	(35,283	)	$	(212,268	)	37,763		$	388,553
Class 1 shares
Sold	14,997,929		$	106,432,784		17,158,243		$	176,378,050
Distributions reinvested	1,611,108			10,375,537		254,558			2,660,134
Repurchased	(1,640,803	)		(11,608,029	)	(251,331	)		(2,535,009	)
Net increase	14,968,234		$	105,200,292		17,161,470		$	176,503,175
Net increase	15,501,662		$	109,133,693		17,711,177		$	182,083,635

60     Lifecycle Portfolios | Annual report

Lifecycle 2010 Portfolio

				Year ended 8-31-09					Year ended 8-31-08
	Shares			Amount		Shares			Amount
Class A shares
Sold	292,785		$	2,223,749		206,150		$	2,112,391
Issued in class	289,387			2,428,586		—			—
Distributions reinvested	15,125			101,640		2,495			25,819
Repurchased	(136,259	)		(940,575	)	(60,209	)		(603,338	)
Net increase	461,038		$	3,813,400		148,436		$	1,534,872
Class B1 shares
Sold	22,919		$	163,095		23,018		$	235,563
Redeemed in class	(39,224	)		(328,622	)	—			—
Distributions reinvested	1,266			8,530		280			2,904
Repurchased	(8,127	)		(60,309	)	(12,596	)		(126,151	)
Net increase (decrease)	(23,166	)	$	(217,306	)	10,702		$	112,316
Class C1 shares
Sold	75,643		$	534,756		100,254		$	1,040,588
Redeemed in class	(154,022	)		(1,291,223	)	—			—
Distributions reinvested	3,652			24,615		1,147			11,884
Repurchased	(27,255	)		(207,624	)	(38,965	)		(403,306	)
Net increase (decrease)	(101,982	)	$	(939,476	)	62,436		$	649,166
Class R1 shares
Sold	6,771		$	47,094		174		$	1,776
Redeemed in class	(17,574	)		(147,035	)	—			—
Distributions reinvested	551			3,703		211			2,182
Repurchased	(272	)		(2,275	)	—			—
Net increase (decrease)	(10,524	)	$	(98,513	)	385		$	3,958
Class R1 shares
Sold	4,910		$	35,868		2,725		$	27,217
Issued in class	17,555			147,035		—			—
Distributions reinvested	772			5,188		238			2,456
Repurchased	(2,129	)		(14,370	)	(25	)		(258	)
Net increase	21,108		$	173,721		2,938		$	29,415
Class R21 shares
Sold	33,248		$	245,028		311,738		$	3,064,593
Redeemed in class	(96,489	)		(808,741	)	—			—
Distributions reinvested	6,716			45,062		264			2,730
Repurchased	(178,344	)		(1,417,832	)	(87,280	)		(881,776	)
Net increase (decrease)	(234,869	)	$	(1,936,483	)	224,722		$	2,185,547
Class R3 shares
Sold	66,834		$	531,367		97,370		$	1,016,704
Distributions reinvested	4,911			33,000		1,055			10,914
Repurchased	(3,423	)		(23,484	)	(26,359	)		(266,281	)
Net increase	68,322		$	540,883		72,066		$	761,337
Class R4 shares
Sold	5,894		$	43,791		16,708		$	166,308
Distributions reinvested	704			4,721		264			2,730
Repurchased	(13,926	)		(122,010	)	(5,964	)		(57,706	)
Net increase (decrease)	(7,328	)	$	(73,498	)	11,008		$	111,332
Class R5 shares
Sold	8,201		$	64,370		57,081		$	557,654
Distributions reinvested	1,120			7,502		290			3,005
Repurchased	(35,976	)		(287,506	)	(16,191	)		(158,353	)
Net increase (decrease)	(26,655	)	$	(215,634	)	41,180		$	402,306
Class 1 shares
Sold	6,471,288		$	47,546,820		10,300,472		$	105,648,006
Distributions reinvested	942,312			6,322,912		147,202			1,523,542
Repurchased	(1,898,895	)		(13,768,484	)	(368,067	)		(3,737,100	)
Net increase	5,514,705		$	40,101,248		10,079,607		$	103,434,448
Net increase	5,660,649		$	41,148,342		10,653,480		$	109,224,697

¹ Effective at the close of business on August 21, 2009, Classes B, C and R2 merged into Class A and Class R merged into Class R1.

Annual report | Lifecycle Portfolios     61

7. Purchases and sales of securities

The following summarizes the purchases and sales of the affiliated underlying funds for the year ended August 31, 2009:

	Purchases				Sales and Maturities
	U.S.		Other		U.S.		Other
Portfolio	Government		Issuers		Government		Issuers
Lifecycle 2045		—	$	121,942,720		—	$	26,848,297
Lifecycle 2040		—		118,426,109		—		26,125,315
Lifecycle 2035		—		159,200,856		—		36,339,322
Lifecycle 2030		—		206,463,996		—		55,445,167
Lifecycle 2025		—		250,290,362		—		75,342,598
Lifecycle 2020		—		249,021,361		—		79,555,840
Lifecycle 2015		—		173,295,618		—		63,777,154
Lifecycle 2010		—		79,406,662		—		37,933,966

8. Investment in affiliated underlying funds

The Portfolios invest primarily in 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 fund’s net assets. For the year ended August 31, 2009, 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	International Equity Index	6.14%
Lifecycle 2040	International Equity Index	6.47%
Lifecycle 2035	International Equity Index	8.86%
	Small Cap Index	6.06%
Lifecycle 2030	International Equity Index	11.28%
	Small Cap Growth	5.21%
	Small Cap Index	7.85%
Lifecycle 2025	Index 500	5.48%
	International Equity Index	13.70%
	Small Cap Growth	5.41%
	Small Cap Index	6.45%
Lifecycle 2020	Index 500	5.55%
	International Equity Index	11.11%
	Small Cap Index	5.14%

62     Lifecycle Portfolios | 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 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 each of the portfolios (identified in Note 6) which are part of John Hancock Funds II (the “Trust”) at August 31, 2009, 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’smanagement; our responsibility is to express an opinion on these financial statements based on our audits. We conducted ouraudits 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, 2009 by correspondence with the custodian, transfer agent and the application of alternative auditing procedures where securities purchased confirmations had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 23, 2009

Annual report | Lifecycle Portfolios     63

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, 2009.

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	$	962,229
Lifecycle 2040		1,157,256
Lifecycle 2035		2,042,797
Lifecycle 2030		2,553,593
Lifecycle 2025		2,908,069
Lifecycle 2020		2,411,072
Lifecycle 2015		1,763,044
Lifecycle 2010		855,324

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 2009 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.

Dividend Received
Portfolio	Deduction
Lifecycle 2045	64.18	%
Lifecycle 2040	63.27	%
Lifecycle 2035	64.88	%
Lifecycle 2030	61.67	%
Lifecycle 2025	43.97	%
Lifecycle 2020	29.71	%
Lifecycle 2015	21.55	%
Lifecycle 2010	16.74	%

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 2009.

Shareholders will be mailed a 2009 Form 1099-DIV in January 2010. This will reflect the total of all distributions that are taxable for the calendar year 2009.

64     Lifecycle Portfolios | Annual report

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 (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 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”).

APPROVAL OF ADVISORY AGREEMENT

At its meeting on May 28–29, 2009, 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

Annual report | Lifecycle Portfolios     65

	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 arms-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,
	(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
	(e) considered that the Adviser should be entitled to earn a reasonable level of profits in exchange for the level of services it provide 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’ anticipated level of profitability 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, the Trustees reviewed the advisory fee to be paid to the Adviser for each Fund and concluded that the advisory fee to be paid to the Adviser with respect to each Fund 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 and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund 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 28–29, 2009, 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 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 arms-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

66     Lifecycle Portfolios | Annual report

(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, the Trustees reviewed the subadvisory fee to be paid to the subadviser for each Fund and concluded that the subadvisory fee to be paid to the subadviser with respect to each Fund 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 and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund and those of its underlying portfolios.

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

Annual report | Lifecycle Portfolios     67

John Hancock Funds II
Appendix A

Portfolio	Performance of Portfolio as
(Subadviser)	of March 31, 2009	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. Net management 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. The Board also noted that the Fund is subject to contractual and voluntary fee waivers, which reduce certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s per- formance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved performance for the year-to-date through May 28, 2009. The Board also took into account management’s discussion of its proposed plans, including potential changes to the Lifecycle structure.
Lifecycle 2015 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund underperformed the benchmark index over the one-year period. The Fund modestly underperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Net management 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 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 contractual and voluntary fee waivers, which reduce certain expenses of the Fund. The Board took into account man- agement’s discussion of the Fund’s performance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved performance for the year-to-date through May 28, 2009. The Board also took into account management’s discussion of its proposed plans, including potential changes to the Lifecycle structure.

68     Lifecycle Portfolios | Annual report

Appendix A (continued)

Portfolio	Performance of Portfolio as
(Subadviser)	of March 31, 2009	Fees and Expenses	Other Comments
Lifecycle 2020 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund modestly underperformed the benchmark index over the one-year period. The Fund under- performed the Morningstar Category Average over the one-year period.	No subadvisory fee com- parative information recorded due to limited size of peer group. Net management 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 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 contractual and voluntary fee waivers, which reduce certain expenses of the Fund. The Board took into account man- agement’s discussion of the Fund’s performance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved performance for the year-to-date through May 28, 2009. The Board also took into account management’s discussion of its proposed plans, including potential changes to the Lifecycle structure.
Lifecycle 2025 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund modestly underperformed the benchmark index over the one-year period. The Fund modestly under- performed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information record- ed due to limited size of peer group. Net management 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 contractual and voluntary fee waivers, which reduce certain expenses of the Fund. The Board took into account manage- ment’s discussion of the Fund’s perform- ance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved performance for the year-to-date through May 28, 2009. The Board also took into account management’s discussion of its proposed plans, including potential changes to the Lifecycle structure.

Annual report | Lifecycle Portfolios     69

Appendix A (continued)

Portfolio	Performance of Portfolio as
(Subadviser)	of March 31, 2009	Fees and Expenses	Other Comments
Lifecycle 2030 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund modestly underperformed the benchmark index over the one-year period. The Fund modestly underperformed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information record- ed due to limited size of peer group. Net management 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 management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure. The Board also noted that the Fund is subject to contractual and voluntary fee waivers, which reduce certain expenses of the Fund. The Board took into account man- agement’s discussion of the Fund’s performance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved performance for the year-to-date through May 28, 2009. The Board also took into account management’s discussion of its proposed plans, including potential changes to the Lifecycle structure.
Lifecycle 2035 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund slightly underper- formed the benchmark index over the one-year period. The Fund slightly under- performed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Net management 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 voluntary and contractual fee waivers, which reduce certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s performance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved performance for the year-to-date through May 28, 2009. The Board also took into account man- agement’s discussion of its proposed plans, including potential changes to the Lifecycle structure.

70     Lifecycle Portfolios | Annual report

Appendix A (continued)

Portfolio	Performance of Portfolio as
(Subadviser)	of March 31, 2009	Fees and Expenses	Other Comments
Lifecycle 2040 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund slightly underperformed the benchmark index over the one-year period. The Fund slightly underperformed the Morningstar Category Average over the one-year period.	No subadvisory fee com- parative information recorded due to limited size of peer group. Net management 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 management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure. The Board also noted that the Fund is subject to voluntary and contractual fee waivers, which reduce certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s performance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved per- formance for the year-to-date through May 28, 2009. The Board also took into account management’s discussion of its proposed plans, including potential changes to the Lifecycle structure.
Lifecycle 2045 (MFC Global Investment Management (U.S.A.) Limited)*	The Fund slightly underperformed the benchmark index over the one-year period. The Fund slightly under- performed the Morningstar Category Average over the one-year period.	No subadvisory fee comparative information recorded due to limited size of peer group. Net management 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 management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure. The Board also noted that the Fund is subject to voluntary and contractual fee waivers, which reduce certain expenses of the Fund. The Board took into account management’s discussion of the Fund’s performance, including the factors that contributed to its underperformance relative to its benchmark and peer group. The Board also took into account management’s discussion of the Fund’s more recent improved per- formance for the year-to-date through May 28, 2009. The Board also took into account man- agement’s discussion of its proposed plans, including potential changes to the Lifecycle structure.

*Deutsche Investment Management America Inc. provides subadvisory consulting services to MFC Global (U.S.A.) in its management of the Portfolio.

Annual report | Lifecycle Portfolios     71

Trustees and Officers Financial statements

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

		Number of
Name, Year of Birth	Trustee	John Hancock
Position(s) held with Fund	of Fund	funds overseen
Principal occupation(s) and other directorships during past 5 years	since1	by Trustee
Charles L. Bardelis, 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, 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).
Theron S. Hoffman,2 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, 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, Born: 1946	2005	212
Chairman of the Board of John Hancock Funds II; Managing Director, Wydown Group (finan-
cial 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 (since 1995); and Connecticut
River Bancorp, Director (since 1998); Virtus Investment Management (since 2009); and
Emerson Investment Management (since 2000). Trustee of John Hancock Trust (since 2004)
and former Trustee of John Hancock Funds III (2005–2006).
Steven M. Roberts,2 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).

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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust.

2

Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

72     Lifecycle Portfolios | Annual report

Trustee Emeritus
		Number of
Name, Year of Birth	Trustee	John Hancock
Position(s) held with Fund	of Fund	funds overseen
Principal occupation(s) and other directorships during past 5 years	since	by Trustee
John D. Richardson,1 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 Mr. Richardson became a non-voting Trustee Emeritus on December 14, 2006.

Non-Independent Trustees¹

		Number of
Name, Year of Birth	Trustee	John Hancock
Position(s) held with Fund	of Fund	funds overseen
Principal occupation(s) and other directorships during past 5 years	since1,2	by Trustee
James R. Boyle,2 Born: 1959	2005	264
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,3,4 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	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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
2	Mr. Boyle is an “interested person” (as defined in the 1940 Act) due to his position with Manulife Financial Corporation (or its affiliates), the ultimate parent of the Adviser.
3	Ms. Fey was appointed by the Board as Trustee on September 26, 2008.
4	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.

Annual report | Lifecycle Portfolios     73

Principal officers who are not Trustees
Name, age
Position(s) held with Portfolio	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since
Hugh McHaffie, Born: 1959	2009
President
Executive Vice President, John Hancock Wealth Management (since 2006, including prior positions); Senior Vice
President, Individual Business Product Management, MetLife, Inc. (1999–2006); Vice President, Annuity Product
Management, John Hancock Life Insurance Company (1990–1999).
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).
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).
Michael J. Leary, Born: 1965	2007
Treasurer
Vice President, John Hancock Life Insurance Company (U.S.A.) and Treasurer for John Hancock Funds, John Hancock
Funds II, John Hancock Funds III and John Hancock Trust (since May 2009); Assistant Treasurer, John Hancock Funds,
John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2007–2009); Vice President and Director of
Fund Administration, JP Morgan (2004–2007); Vice President and Senior Manager of Fund Administration,
JP Morgan (1993–2004); Manager, Ernst & Young, LLC (1988–1993).
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).
John G. Vrysen, Born: 1955	2007
Chief Operating Officer (since 2005)
Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief
Operating Officer, the Adviser, The Berkeley Group, John Hancock Investment Management Services, LLC and
John Hancock Funds, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John
Hancock Funds III and John Hancock Trust (since 2007); Director, John Hancock Signature Services, Inc. (since
2005); Chief Financial Officer, the Adviser, The Berkeley Group, Manulife Financial Corporation Global Investment
Management (U.S.), LLC, John Hancock Investment Management Services, LLC, John Hancock Funds, LLC, John
Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005–2007); Vice President,
Manulife Financial Corporation (until 2006).

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.

74     Lifecycle Portfolios | Annual report

More information

Trustees

James M. Oates,** Chairman

James R. Boyle†

Grace K. Fey**†

Charles L. Bardelis*

Peter S. Burgess*

Theron S. Hoffman**

Hassell H. McClellan**

Steven M. Roberts*

John D. Richardson, Trustee Emeritus

  *Member of the Audit Committee

**Member of the Compliance Committee

  †Non-Independent Trustee

Officers

Hugh McHaffie

President

Thomas M. Kinzler

Secretary and Chief Legal Officer

Francis V. Knox, Jr.

Chief Compliance Officer

Michael J. Leary

Treasurer

Charles A. Rizzo

Chief Financial Officer

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 and Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

Independent registered public accounting firm

PricewaterhouseCoopers LLP

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

The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form3N-Q. The Fund’s Form N-Q is available on our Web site and the SEC’s Web site, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-800-SEC-0330 to3receive information on the operation of the SEC’s Public Reference Room.

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

You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 9510	Mutual Fund Image Operations
	Portsmouth, NH 03802-9510	164 Corporate Drive
		Portsmouth, NH 03801

Lifecycle Portfolios | Annual report     75

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 8/09
	10/09

John Hancock Lifecycle Retirement

Portfolio

Annual Report
8.31.09

Lifecycle Retirement Portfolio

Performance results

For the 12 months ended August 31, 2009, the John Hancock 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 -9.88%, -10.55%, -10.55%, -10.42%, -10.19%, -10.07%, - -10.09%, -9.81%, -9.63% and -9.57%, respectively, at net asset value. In comparison, the Standard & Poor’s 500 Index returned -18.25%, the Barclays Capital U.S. Aggregate Bond Index returned 7.94% and the Portfolio’s blended benchmark — 50% S&P 500 Index/50% Barclays Capital U.S. Aggregate Index — returned -5.16% over the same period. At the same time, the average retirement income portfolio returned -3.22%, according to Morningstar, Inc.¹

Performance review

During the first half of the year ended August 31, 2009, investors endured the most difficult time that they had seen in decades, as a severe recession and the continued financial crisis weighed on financial markets. In early March, stocks staged a major rally, as investors appeared to be convinced that massive government intervention had begun to stabilize the markets and that the economy was recovering. Despite the rally, stocks still ended the period down, with the Standard & Poor’s 500 Index returning -18.25%. Bonds fared better, mostly generating positive results. The broad Barclays Capital U.S. Aggregate Bond Index returned 7.94%.

The Portfolio lagged its blended benchmark due to its allocations to real estate - both global and U.S. - and commodities. Also detracting from performance was our lack of exposure to emerging markets, which outperformed the S&P 500 Index. We sold our emerging-market stake during the period, missing the sharp rebound that lifted these markets later in the period.

The biggest contributor to the Portfolio’s absolute performance was its 55% stake in fixed-income, since bonds overall produced positive results while the blended benchmark index lost ground.

Overall, the significant challenges to asset allocation and manager selection in 2008 have given way to strong positive results in 2009. However, these recent gains have not been strong enough as of yet to overcome the widespread declines experienced in 2008.

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

Past performance is no guarantee of future results.

1

Asset Allocation
Equity	% of Total
Exchange Traded Funds and Other	13%
U.S. Large Cap	9%
U.S. Mid Cap	6%
U.S. Small Cap	1%
Real Estate	4%
Natural Resources	3%
Large Blend	2%
International Large Cap	6%
International Small Cap	1%
Fixed Income	% of Total
Multi-Sector Bond	12%
U.S. High Yield Bond	12%
Intermediate Bond	11%
U.S. Government and Agency	7%
Global Bond	4%
Short-term Securities	1%

As a percentage of Net Assets on August 31, 2009

2

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	8,960	8,960	9,003	9,065	9,114	9,093	9,163	9,233	9,244
With maximum sales charge	8,719	8,960	9,003	9,065	9,114	9,093	9,163	9,233	9,244
Index2,3	9,805	9,805	9,805	9,805	9,805	9,805	9,805	9,805	9,805

Performance chart

Total returns with maximum sales charge for the period ended August 31, 2009.

	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	–14.39%	–14.79%	–11.40%	–10.42%	–10.19%	–10.07%	–10.09%	–9.81%	–9.63%	–9.57%
Average annual returns — Since inception	–4.81%	–4.70%	–3.79%	–3.63%	–3.39%	–3.21%	–3.29%	–3.03%	–2.77%	–2.73%
Cumulative total returns — 1 year	–14.39%	–14.79%	–11.40%	–10.42%	–10.19%	–10.07%	–10.09%	–9.81%	–9.63%	–9.57%
Cumulative total returns — Since inception	–13.07%	–12.81%	–10.40%	–9.97%	–9.35%	–8.86%	–9.07%	–8.37%	–7.67%	–7.56%
Cumulative total returns — 6 months	26.79%	27.88%	31.88%	32.96%	33.12%	33.12%	33.13%	33.32%	33.52%	33.56%

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, 2009. The following expense ratios include expenses of the underlying affiliated funds in which the Portfolio invests. The net expenses are as follows: Class A — 1.34%, Class B — 2.04%, Class C — 2.04%, Class R — 1.91%, Class R1 — 1.66%, Class R2 — 1.41%, Class R3 — 1.56%, Class R4 — 1.26%, Class R5 — 0.96%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class A — 1.52%, Class B — 5.16%, Class C — 2.32%, Class R — 15.99%, Class R1 — 16.77%, Class R2 — 12.27%, Class R3 — 11.40%, Class R4 — 16.43%, Class R5 — 15.83%. The net expenses equal the gross expenses and are as follows: Class 1 — 0.89%. Fund’s expenses for the current fiscal year may be higher than the expenses listed above, for some of the following reasons: i) a significant decrease in average net assets may result in a higher advisory fee rate; ii) a significant decrease in average net assets may result in an increase in the expense ratio; and iii) the termination or expiration of expense cap reimbursements.

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. Sales charges are not applicable to these classes.
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 Barclays Capital U.S. Aggregate Bond 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.

3

Your expenses

As a shareholder of John Hancock Fund II Lifecycle Retirement Portfolio, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase and redemption fees on certain exchanges and redemptions, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees and other Portfolio expenses. In addition to the operating expenses which the Portfolio bears directly, the Portfolio indirectly bears a pro rata share of the operating expenses of the 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, 2009 through August 31, 2009).

Actual expenses:

The first line of each share class in the table on the following page 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 page 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.

4

Lifecycle Retirement | Annual report

			Expenses Paid
	Beginning	Ending	During Period 1	Annualized
	Account Value	Account Value	3/1/2009 —	Expense
	3/1/2009	8/31/2009	8/31/2009	Ratio2
Lifecycle Retirement Portfolio
Class A — Actual	$1000.00	$1,334.40	$3.66	0.68%
Class A — Hypothetical (5% of annualized return before expenses)	1000.00	1,021.80	3.47	0.68%
Class B — Actual	1000.00	1,328.80	8.10	1.38%
Class B — Hypothetical (5% of annualized return before expenses)	1000.00	1,018.20	7.02	1.38%
Class C — Actual	1000.00	1,328.80	8.10	1.38%
Class C — Hypothetical (5% of annualized return before expenses)	1000.00	1,018.20	7.02	1.38%
Class R — Actual	1000.00	1,329.60	7.22	1.23%
Class R — Hypothetical (5% of annualized return before expenses)	1000.00	1,019.00	6.26	1.23%
Class R1 — Actual	1000.00	1,331.20	5.76	0.98%
Class R1 — Hypothetical (5% of annualized return before expenses)	1000.00	1,020.30	4.99	0.98%
Class R2 — Actual	1000.00	1,331.20	4.29	0.73%
Class R2 — Hypothetical (5% of annualized return before expenses)	1000.00	1,021.50	3.72	0.73%
Class R3 — Actual	1000.00	1,331.30	5.17	0.88%
Class R3 — Hypothetical (5% of annualized return before expenses)	1000.00	1,020.80	4.48	0.88%
Class R4 — Actual	1000.00	1,333.20	3.41	0.58%
Class R4 — Hypothetical (5% of annualized return before expenses)	1000.00	1,022.30	2.96	0.58%
Class R5 — Actual	1000.00	1,335.20	1.65	0.28%
Class R5 — Hypothetical (5% of annualized return before expenses)	1000.00	1,023.80	1.43	0.28%
Class 1 — Actual	1000.00	1,335.60	1.41	0.24%
Class 1 — Hypothetical (5% of annualized return before expenses)	1000.00	1,024.00	1.22	0.24%

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 365 (to reflect the one-half year period.)
2	Lifecycle Retirement Portfolio’s expense ratios do not include fees and expenses indirectly incurred by the underlying funds whose expense ratios can vary based on the mix of underlying funds held by the Portfolio. The range of expense ratios of the underlying funds held by the Portfolios was 0.49% - 1.09% for the year ended August 31, 2009.

The accompanying notes are an integral part of the financial statements

5

JOHN HANCOCK FUNDS II

PORTFOLIO OF INVESTMENTS - August 31, 2009

(showing percentage of total net assets)

Lifecycle Retirement Portfolio

		Shares or
		Principal
		Amount		Value
INVESTMENT COMPANIES - 91.27%
Investment Companies - 13.38%
iShares iBoxx Investment Grade Corporate Bond Fund		177,800	$	18,727,674
PowerShares DB Commodity Index Tracking Fund		353,002		7,804,874
SPDR Barclays Capital High Yield Bond ETF		205,800		7,540,512
				34,073,060
JOHN HANCOCK FUNDS II (g) - 74.89%
Alpha Opportunites (Wellington)		400,329		4,351,572
Fundamental Value (Davis)		620,965		7,631,660
Global Bond (PIMCO)		825,566		10,228,764
Global Real Estate (Deutsche)		815,348		5,087,773
High Income (MFC Global U.S.) (f)		1,198,063		7,631,660
High Yield (WAMCO)		1,440,269		11,464,541
Index 500 (MFC Global U.S.A.) (f)		2,000,435		15,263,320
International Equity Index (SSgA)		328,032		5,087,773
International Small Company (DFA)		377,039		2,680,748
International Value (Templeton)		196,288		2,543,887
Investment Quality Bond (Wellington)		860,459		10,205,044
Mid Cap Index (MFC Global U.S.A.) (f)		1,050,469		15,263,320
Natural Resources (Wellington)		362,377		6,359,717
Real Estate Equity (T. Rowe Price)		998,535		5,342,162
Real Return Bond (PIMCO)		1,485,709		17,813,653
Small Cap Index (MFC Global U.S.A.) (f)		386,218		3,815,830
Spectrum Income (T. Rowe Price)		1,018,809		10,188,088
Strategic Bond (WAMCO)		993,313		10,201,327
Strategic Income (MFC Global U.S.) (f)		1,042,954		10,179,230
Total Bond Market (Declaration) (f)		979,714		10,208,622
Total Return (PIMCO)		547,270		7,656,313
U.S. High Yield Bond (Wells Capital)		976,269		11,461,397
				190,666,401
JOHN HANCOCK FUNDS III (g) - 3.00%
International Core (GMO)		284,233		7,631,660
$215,296,716)			$	232,371,121
SHORT TERM INVESTMENTS - 7.85%
Federal Home Loan Bank Discount Notes 0.08% due 09/01/2009	$	20,000,000	$	20,000,000
TOTAL SHORT TERM INVESTMENTS
(Cost $20,000,000)			$	20,000,000
REPURCHASE AGREEMENTS - 0.86%
Repurchase Agreement with State
Street Corp. dated 08/31/2009 at
0.07% to be repurchased at $2,198,004 on 09/01/2009, collateralized by $2,245,000 U.S.Treasury Bills, 0.00% due 02/25/2010 (valued at $2,242,306,including interest)	$	2,198,000	$	2,198,000
TOTAL REPURCHASE AGREEMENTS
(Cost $2,198,000)			$	2,198,000
Total Investments (Lifecycle Retirement
Portfolio)
(Cost $237,494,716) - 99.98%			$	254,569,121
Other assets and liabilities, net - 0.02%				41,868
TOTAL NET ASSETS - 100.00%			$	254,610,989

Footnotes

Percentages are stated as a percent of net assets.

Key to Security Abbreviations and Legend

ETF	- Exchange Traded Fund
SPDR	- Standard & Poor’s Depositary Receipts
(f)	The subadviser is an affiliate of the adviser and the fund.
(g)	The Underlying Fund’s subadviser is shown parenthetically.

Investment Companies

Underlying Fund’s Investment Managers

Davis Advisers	(Davis)
Declaration Management/	(Declaration)
John Hancock Advisers
Deutsche Asset Management	(Deutsche)
Dimensional Fund Advisors, Inc.	(DFA)
Franklin®Templeton®	(Templeton)
MFC Global Investment Management	(MFC Global U.S.A.)
(U.S.A.) Limited
MFC Global Investment Management	(MFC Global U.S.)
(U.S.), LLC
Pacific Investment Management Company	(PIMCO)
SSgA Funds Management, Inc.	(SSgA)
T. Rowe Price Associates, Inc.	(T. Rowe Price)
Wellington Management Company, LLP	(Wellington)
Wells Capital Management, Inc.	(Wells Capital)
Western Asset Management Company	(WAMCO)

The accompanying notes are an integral part of the financial statements.

6

John Hancock Funds II

Statement of Assets and Liabilities — August 31, 2009

	Lifecycle
	Retirement
	Portfolio
Assets
Investments in unaffiliated issuers, at value	$	54,073,060
Investments in affiliated funds, at value (Note 9)		198,298,061
Repurchase agreements, at value (Note 2)		2,198,000
Total investments, at value		254,569,121
Cash		593
Receivable for fund shares sold		1,011,059
Total assets		255,580,773
Liabilities
Payable for investments purchased		748,539
Payable for fund shares repurchased		150,820
Payable to affiliates
Accounting and legal services fees		3,234
Transfer agent fees		2,194
Trustees’ fees		1,238
Investment management fees		968
Other liabilities and accrued expenses		62,791
Total liabilities		969,784
Net assets
Capital paid-in	$	300,236,978
Undistributed net investment income		213,664
Accumulated undistributed net realized loss on
investments and futures contracts		(62,914,058	)
Net unrealized appreciation on investments		17,074,405
Net assets	$	254,610,989
Investments in unaffiliated issuers, including
repurchase agreements, at cost	$	55,529,467
Investments in affiliated issuers, at cost	$	181,965,249
Net asset value per share
The Portfolio has an unlimited number of shares authorized with no par value
Class A
Net assets	$	7,583,706
Shares outstanding		942,584
Net asset value and redemption price per share	$	8.05
Class B1
Net assets	$	387,406
Shares outstanding		48,258
Net asset value, offering price and redemption price per share	$	8.03
Class C1
Net assets	$	2,473,489
Shares outstanding		307,973
Net asset value, offering price and redemption price per share	$	8.03
Class R
Net assets	$	90,267
Shares outstanding		11,240
Net asset value, offering price and redemption price per share	$	8.03
Class R1
Net assets	$	99,829
Shares outstanding		12,425
Net asset value, offering price and redemption price per share	$	8.03

The accompanying notes are an integral part of the financial statements.

7

Statement of Assets and Liabilities — August 31, 2009 continued

Class R2
Net assets	$	175,397
Shares outstanding		21,860
Net asset value, offering price and redemption price per share	$	8.02
Class R3
Net assets	$	174,011
Shares outstanding		21,649
Net asset value, offering price and redemption price per share	$	8.04
Class R4
Net assets	$	135,985
Shares outstanding		16,918
Net asset value, offering price and redemption price per share	$	8.04
Class R5
Net assets	$	122,239
Shares outstanding		15,197
Net asset value, offering price and redemption price per share	$	8.04
Class 1
Net assets	$	243,368,660
Shares outstanding		30,264,562
Net asset value, offering price and redemption price per share	$	8.04
Maximum Public Offering Price Per Share:
Class A (net asset value per share ÷ 95%)2	$	8.47

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.

The accompanying notes are an integral part of the financial statements.

8

Statement of Operations — For the year ended August 31, 2009

		Lifecycle
		Retirement
		Portfolio
Investment income
Income distributions received from affiliated
underlying funds	$	9,168,260
Dividends		808,593
Interest		46,902
Total investment income		10,023,755
Expenses
Investment management fees (Note 5)		243,132
Distribution and service fees (Note 5)		163,794
Transfer agent fees (Note 5)		16,337
Accounting and legal services fees (Note 5)		38,717
State registration fees (Note 5)		95,360
Professional fees		44,386
Printing and postage fees (Note 5)		10,091
Custodian fees		10,950
Trustees’ fees (Note 6)		4,042
Registration and filing fees		22,197
Miscellaneous		1,189
Total expenses		650,195
Net expense reduction (Note 5)		(96,793	)
Net expenses		553,402
Net investment income		9,470,353
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(3,800,726	)
Investments in affiliated underlying funds		(54,065,553	)
Capital gain distributions received from underlying funds		5,853,316
Futures contracts		(2,135,623	)
		(54,148,586	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		133,053
Investments in affiliated underlying funds		26,754,116
Futures contracts		598,523
		27,485,692
Net realized and unrealized loss		(26,662,894	)
Decrease in net assets from operations	$	(17,192,541	)

The accompanying notes are an integral part of the financial statements.

9

Statements of Changes in Net Assets

	Lifecycle Retirement Portfolio
	Year ended 8/31/09			Year ended 8/31/08
Increase (decrease) in net assets
From operations
Net investment income	$	9,470,353		$	4,722,286
Net realized loss		(54,148,586	)		(3,930,045	)
Change in net unrealized appreciation
(depreciation)		27,485,692			(10,685,965	)
Decrease in net assets resulting from operations		(17,192,541	)		(9,893,724	)
Distributions to shareholders
From net investment income
Class A		(327,462	)		(216,722	)
Class B		(11,384	)		(10,644	)
Class C		(135,060	)		(84,790	)
Class R		(2,807	)		(2,788	)
Class R1		(3,165	)		(2,886	)
Class R2		(6,211	)		(4,035	)
Class R3		(5,742	)		(4,719	)
Class R4		(3,887	)		(3,242	)
Class R5		(4,298	)		(3,585	)
Class 1		(8,756,606	)		(4,449,111	)
From net realized gain
Class A		(127,449	)		(75,404	)
Class B		(5,411	)		(5,857	)
Class C		(66,406	)		(36,870	)
Class R		(1,320	)		(1,175	)
Class R1		(1,393	)		(1,178	)
Class R2		(2,541	)		(1,286	)
Class R3		(2,439	)		(2,048	)
Class R4		(1,500	)		(1,184	)
Class R5		(1,565	)		(1,184	)
Class 1		(3,186,665	)		(1,194,092	)
Total distributions		(12,653,311	)		(6,102,800	)
From Fund share transactions (Note 7)		52,892,375			175,256,332
Total increase		23,046,523			159,259,808
Net assets
Beginning of year		231,564,466			72,304,658
End of year	$	254,610,989		$	231,564,466
Undistributed net investment income	$	213,664		$	—

The accompanying notes are an integral part of the financial statements.

10

Financial Highlights - Lifecycle Retirement Portfolio
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 ($)		Net investment income (loss) ($)1,2		Net realized and unrealized gain (loss) on investments($)			Total from investment operations ($)			From net investment income ($)			From net realized gain($)			From capital paid-in ($)		Total distributions($)			Net asset value, end of period ($)		Total return (%)3			Ratio of gross expenses to average net assets (%)4			Ratio of net expenses to average net assets (%)4			Ratio of net investment income (loss) to average net assets(%)1			Net assets, end of period (in thousands) ($)		Portfolio turnover (%)
CLASS A
###-##-####		9.49		0.32		(1.33	)		(1.01	)		(0.31	)		(0.12	)		—		(0.43	)		8.05		(9.88	)8		0.79	11		0.67	5		4.35			7,584		75
08-31-2008		10.33		0.27		(0.70	)		(0.43	)		(0.30	)		(0.11	)		—		(0.41	)		9.49		(4.35	)8		0.86	11		0.68	5,6		2.69			10,640		59
08-31-20077		10.00		0.15		0.46			0.61			(0.20	)		(0.08	)		—		(0.28	)		10.33		6.19	8,9,10		1.24	11,12		0.68			1.82	12		4,270		56
CLASS B
08-31-2009		9.47		0.25		(1.32	)		(1.07	)		(0.25	)		(0.12	)		—		(0.37	)		8.03		(10.55	)8		4.65	11		1.37	5		3.44			387		75
08-31-2008		10.31		0.24		(0.74	)		(0.50	)		(0.23	)		(0.11	)		—		(0.34	)		9.47		(5.03	)8		4.50	11		1.37	5,6		2.37			431		59
08-31-20077		10.00		0.15		0.39			0.54			(0.15	)		(0.08	)		—		(0.23	)		10.31		5.47	8,9,10		3.17	11,12		1.36	12		1.69	12		387		56
CLASS C
08-31-2009		9.47		0.29		(1.36	)		(1.07	)		(0.25	)		(0.12	)		—		(0.37	)		8.03		(10.55	)8		1.76	11		1.37	5		4.12			2,473		75
08-31-2008		10.31		0.18		(0.68	)		(0.50	)		(0.23	)		(0.11	)		—		(0.34	)		9.47		(5.03	)8		1.66	11		1.38	5,6		1.80			6,374		59
08-31-20077		10.00		0.11		0.43			0.54			(0.15	)		(0.08	)		—		(0.23	)		10.31		5.48	8,9,10		2.59	11,12		1.38	12		1.26	12		1,358		56
CLASS R
08-31-2009		9.47		0.27		(1.33	)		(1.06	)		(0.26	)		(0.12	)		—		(0.38	)		8.03		(10.42	)8		14.26	11		1.22	5		3.67			90		75
08-31-2008		10.31		0.25		(0.72	)		(0.47	)		(0.26	)		(0.11	)		—		(0.37	)		9.47		(4.78	)8		15.33	11		1.14	5,6		2.49			101		59
08-31-20077		10.00		0.18		0.37			0.55			(0.16	)		(0.08	)		—		(0.24	)		10.31		5.55	8,9,10		16.32	11,12		1.12	12		2.04	12		106		56
CLASS R1
08-31-2009		9.47		0.26		(1.30	)		(1.04	)		(0.28	)		(0.12	)		—		(0.40	)		8.03		(10.19	)8		12.56	11		0.97	5		3.61			100		75
08-31-2008		10.31		0.27		(0.72	)		(0.45	)		(0.28	)		(0.11	)		—		(0.39	)		9.47		(4.54	)8		16.11	11		0.89	5,6		2.73			102		59
08-31-20077		10.00		0.19		0.38			0.57			(0.18	)		(0.08	)		—		(0.26	)		10.31		5.73	8,9,10		16.09	11,12		0.91	12		2.25	12		106		56
CLASS R2
08-31-2009		9.47		0.28		(1.31	)		(1.03	)		(0.30	)		(0.12	)		—		(0.42	)		8.02		(10.07	)8		7.39	11		0.72	5		3.91			175		75
08-31-2008		10.31		0.26		(0.68	)		(0.42	)		(0.31	)		(0.11	)		—		(0.42	)		9.47		(4.30	)8		11.61	11		0.66	5,6		2.67			157		59
08-31-20077		10.00		0.22		0.37			0.59			(0.20	)		(0.08	)		—		(0.28	)		10.31		5.90	8,9,10		15.77	11,12		0.66	12		2.49	12		110		56
CLASS R3
08-31-2009		9.48		0.27		(1.30	)		(1.03	)		(0.29	)		(0.12	)		—		(0.41	)		8.04		(10.09	)8		7.41	11		0.87	5		3.71			174		75
08-31-2008		10.31		0.29		(0.72	)		(0.43	)		(0.29	)		(0.11	)		—		(0.40	)		9.48		(4.39	)8		10.74	11		0.84	5,6		2.89			184		59
08-31-20077		10.00		0.20		0.37			0.57			(0.18	)		(0.08	)		—		(0.26	)		10.31		5.77	8,9,10		16.01	11,12		0.84	12		2.32	12		106		56
CLASS R4
08-31-2009		9.48		0.30		(1.31	)		(1.01	)		(0.31	)		(0.12	)		—		(0.43	)		8.04		(9.81	)8		11.05	11		0.57	5		4.03			136		75
08-31-2008		10.32		0.31		(0.73	)		(0.42	)		(0.31	)		(0.11	)		—		(0.42	)		9.48		(4.22	)8		15.77	11		0.54	5,6		3.08			103		59
08-31-20077		10.00		0.23		0.37			0.60			(0.20	)		(0.08	)		—		(0.28	)		10.32		6.07	8,9,10		15.71	11,12		0.55	12		2.60	12		106		56
CLASS R5
08-31-2009		9.49		0.33		(1.32	)		(0.99	)		(0.34	)		(0.12	)		—		(0.46	)		8.04		(9.63	)8		10.96	11		0.27	5		4.48			122		75
08-31-2008		10.32		0.33		(0.71	)		(0.38	)		(0.34	)		(0.11	)		—		(0.45	)		9.49		(3.86	)8		15.17	11		0.25	5,6		3.33			111		59
08-31-20077		10.00		0.25		0.37			0.62			(0.22	)		(0.08	)		—		(0.30	)		10.32		6.27	8,9,10		15.41	11,12		0.27	12		2.89	12		106		56
CLASS 1
08-31-2009		9.49		0.33		(1.32	)		(0.99	)		(0.34	)		(0.12	)		—		(0.46	)		8.04		(9.57	)8		0.22	11		0.22	5		4.53			243,369		75
08-31-2008		10.32		0.28		(0.66	)		(0.38	)		(0.34	)		(0.11	)		—		(0.45	)		9.49		(3.83	)8		0.23	11		0.23	5		2.87			213,362		59
08-31-20077		10.00		0.19		0.43			0.62			(0.22	)		(0.08	)		—		(0.30	)		10.32		6.29	8,9,10		0.38	11,12		0.25	12		2.24	12		65,651		56

11

Financial Highlights continued

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 daily shares outstanding.
3	Assumes dividend reinvestment .
4	Does not include expenses of the underlying affiliated funds in which the Portfolio invests.
5	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 Portfolio was 0.49% - 1.09% and 0.49% -1.13% for the years ended 8/31/09 and 8/31/08, respectively.
6	Includes transfer agent fee earned credits of less than 0.01% of average net assets.
7	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.
8	Total returns would have been lower had certain expenses not been reduced during the periods shown.
9	Not annualized.
10	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.
11	Does not take into consideration expense reductions during the periods shown.
12	Annualized.

See notes to financial statements.

12

Notes to financial statements
1. Organization of the Trust

John Hancock Funds II (JHF II or the Trust) 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. The Trust 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 ninety-four separate investment funds, one of which, the John Hancock Lifecycle Retirement Portfolio (the Portfolio), is presented in this report. The Portfolio is non-diversified for purposes of the 1940 Act.

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

The accounting policies of the affiliated underlying funds of the Portfolio are outlined in the shareholder reports for such funds, available without charge by calling 1-800-2255291 or on the Securities and Exchange Commission (SEC) Web site at www.sec.gov, or at the SEC’s public reference room in Washington, D.C. The affiliated underlying funds are not covered by this report.

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

The JHF and JHF III funds are retail mutual funds advised by the Adviser and distributed by the Distributor.

The Board of Trustees have authorized the issuance of multiple classes of shares of the Portfolio, 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 affiliates of MFC.

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

13

At August 31, 2009, John Hancock USA owned 11,212, 11,288, 11,364, 11,309, 11,397 and 11,484 shares of beneficial interest of Class R, Class R1, Class R2, Class R3, Class R4 and Class R5, respectively.

2. Significant accounting policies

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, October 23, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Portfolio:

Security valuation

Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Investments by the Portfolio in underlying affiliated 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. All other securities held by the Portfolio 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. Certain short-term debt instruments are valued at amortized cost.

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.

Fair Value Measurements. The Portfolio uses a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

Level 1 — Exchange traded prices in active markets for identical securities and published net asset value for mutual funds. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights, options and futures.

Level 2 — Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities. Also, over-the-counter derivative contracts, including swaps, foreign forward currency contracts, and certain options use these techniques.

14

Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Trust’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and are based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may not only use observable or unobservable inputs but may also include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Portfolio’s investments as of August 31, 2009, by major security category or security type.

Investments in Securities

	Level 1		Level 2		Level 3		Totals
Investment Companies	$	232,371,121		—		—	$	232,371,121
Short-term Securities			$	22,198,000		—	$	22,198,000
Total	$	232,371,121	$	22,198,000		—	$	254,569,121

Repurchase agreements

The Portfolio may enter into repurchase agreements. When the Portfolio 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 Portfolio will take receipt of all securities underlying the repurchase agreements it has entered into, until such agreements expire. If the seller defaults, the Portfolio would suffer a loss to the extent that proceeds from the sale of underlying securities were less than the repurchase amount. The Portfolio may enter into repurchase agreements maturing within seven days with domestic dealers, banks or other financial institutions deemed to be creditworthy by the Adviser.

Security transactions and related investment income

Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income and distributions from underlying funds are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Portfolio becomes aware of the dividends from cash collections. Discounts/premiums are accreted/amortized for financial reporting purposes. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful, based upon consistently applied procedures. The Portfolio uses the specific identification method for determining realized gain or loss on investments for both financial statement and federal income tax reporting purposes.

15

Overdrafts

Pursuant to the custodian agreement, the Custodian may, in its discretion, advance funds to the Portfolio to make properly authorized payments. When such payments result in an overdraft, the Portfolio 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 Portfolio property that is not segregated, to the extent of any overdraft.

Expenses

The majority of expenses are directly identifiable to an individual Portfolio. Trust expenses that are not readily identifiable to a specific Portfolio 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 Portfolios. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class allocations

Income, common expenses and realized and unrealized gains (losses) are determined at the Portfolio level and allocated daily to each class of shares based on the appropriate net asset value of the respective class. Class-specific expenses, including distribution and service fees, transfer agent fees, state registration fees and printing and postage fees 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.

Federal income taxes

The Portfolio intends to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and intends to make sufficient distributions to shareholders that it will not be subject to federal income tax on taxable income. Therefore, no federal income tax provision is required.

For federal income tax purposes, the Portfolio had a $2,873,065 capital loss carryforward available, to the extent provided by regulations, to offset future net realized capital gains. To the extent this carryforward is used by the Portfilio, it will reduce the amount of capital gain distributions to be paid. The loss carryforward will expire on August 31, 2017.

Net capital losses of $37,579,136 that are attributable to security transactions incurred after October 31, 2008, are treated as arising on September 1, 2009, the first day of the Fund’s next taxable year.

As of August 31, 2009, the Portfolio had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Portfolio’s federal tax returns filed in the three year period ended August 31, 2009 remain subject to examination by the Internal Revenue Service.

At August 31, 2009, the aggregate cost of investment securities for federal income tax purposes was $260,176,948. Net unrealized depreciation aggregated $5,607,827, of

16

which $19,953,751 related to appreciated investment securities and $25,561,578 related to depreciated investment securities.

Distribution of income and gains

The Portfolio records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Portfolio generally declares and pays income dividends quarterly and capital gains distributions, if any, annually. During the year ended August 31, 2009, the tax character of distributions paid was as follows: ordinary income $11,735,732 and long-term capital gain $917,579. During the year ended August 31, 2008, the tax character of distributions paid was as follows: ordinary income $5,993,973 and long-term capital gain $108,827. Distributions paid by the Portfolio with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of expenses that may be applied differently to each class.

As of August 31, 2009, the components of distributable earnings on a tax basis included $243,915 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 Portfolio’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 be reversed in a subsequent period. For the year ended August 31, 2009, there were no permanent book-tax differences.

3. Financial instruments

The Portfolio has adopted the provisions of Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (FAS 161). This new standard requires the Portfolio to disclose information to assist investors in understanding how the Portfolio uses derivative instruments, how derivative instruments are accounted for under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (FAS 133) and how derivative instruments affect the Portfilio’s financial position, results of operations and cash flows. The disclosure for the year ended August 31, 2009 is presented in accordance with FAS 161.

Futures

The Portfolio may purchase and sell financial futures contracts, including index futures and options on these contracts. A future is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. The Portfolio uses futures contracts to manage against a decline in the value of securities owned by the Portfolio due to anticipated interest rate, currency or market changes. In addition, the Portfolio will use futures contracts for duration management or to gain exposure to a securities market.

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An index futures contract (index future) is a contract to buy a certain number of units of the relevant index at a fixed price and specific future date. The Portfolio may invest in index futures as a means of gaining exposure to securities without investing in them directly, thereby allowing the Portfolio to invest in the underlying securities over time. Investing in index futures also permits the Fund to maintain exposure to common stocks without incurring the brokerage costs associated with investment in individual common stocks.

When the Portfolio sells a futures contract based on a financial instrument, the Portfolio becomes obligated to deliver such instrument at an agreed upon date for a specified price. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolio and the prices of futures contracts, the possibility of an illiquid market and the inability of the counterparty to meet the terms of the contract.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. Upon entering into a futures contract, initial margin deposits, as set by the exchange or broker to the contract, are required and are met by the delivery of specific securities (or cash) as collateral to the broker. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Portfolio. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statement of assets and liabilities. The Portfolio had no open financial futures contract on August 31, 2009.

During the year ended August 31, 2009, the Portfolio used futures to hedge against anticipated interest rates; enhance potential gain/income; hedge against anticipated changes in securities markets and gain exposure to certain securities markets / substitute for securities purchase (or to be purchased).

During the year ended August 31, 2009, the Portfolio held futures contracts that ranged from approximately $5 million to $13 million (notional value). These contracts were settled during the 3^rd quarter of fiscal year 2009.

Effect of derivative instruments on the Statement of Operations

The table below summarizes the realized gain (loss) recognized in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category for the year ended August 31, 2009:

Derivatives not accounted for as hedging instruments under FAS 133		Futures			Total
Statement of Operations location Net realized gain (loss) on Futures contracts	$	(253,777	)	$	(253,777	)
Interest rate contracts		(1,881,846	)		(1,881,846	)
Equity contracts	$	(2,135,623	)	$	(2,135,623	)

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The table below summarizes the change in unrealized appreciation (depreciation) rec ognized in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category:

Derivatives not accounted for as hedging instruments under FAS 133	Futures		Total
Statement of Operations location — Change in
unrealized appreciation (depreciation) on Futures contracts
Interest rate contracts	$	39,949	$	39,949
Equity contracts		558,574		558,574
	$	598,523	$	598,523

4. 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.

5. Investment advisory and other agreements Advisory fees

The Trust has entered into an Investment Advisory Agreement with the Adviser. The Adviser is responsible for managing the corporate and business affairs of the Trust and for selecting and compensating subadvisers to handle the investment of the assets of the Portfolio, 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 Funds 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 Portfolio pays a daily management fee to the Adviser as stated below.

The fee on assets invested in a fund of JHF II or JHF III is stated as an annual percentage of the current value of the aggregate net assets of all the John Hancock LifeCycle Portfolios determined in accordance with the following schedule, and that rate is applied to the Affiliated Fund Assets of each John Hancock LifeCycle Portfolio.

	First $7.5 billion of	Excess over $7.5 billion
Portfolio	Aggregate Net Assets	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 John Hancock LifeCycle Portfolios determined in accordance with the following schedule, and that rate is applied to the Other Assets of each John Hancock LifeCycle Portfolio.

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

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MFC Global Investment Management (U.S.A) Limited acts as Subadviser to the Portfolio. The Portfolio is not responsible for the payment of subadvisory fees. The investment management fees incurred for the year ended August 31, 2009, were equivalent to an annual effective rate of 0.12% of the Portfolio’s average daily net assets.

Expense reimbursements

The Adviser has contractually agreed to reimburse for certain Portfolio level expenses (excluding management fees, underlying fund expenses, Rule 12b-1 fees, transfer agency fees, service plan fees, state registration fees, printing and postage fees, taxes, brokerage commissions, interest, litigation and indemnification expenses, other expenses not incurred in the ordinary course of the Portfolio’s business, and fees under any agreement or plans of the Portfolio 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 Portfolio 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, 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, 2009, and thereafter until terminated by the Adviser on notice to JHF II.

For the year ended August 31, 2009, the expense reductions related to this limitation amounted to $9,017 for Class A, $11,007 for Class B, $13,691 for Class C, $10,366 for Class R, $10,351 for Class R1, $10,770 for Class R2, $10,381 for Class R3, $10,371 for Class R4, $10,515 for Class R5 and $9 for Class 1, and is reflected as a reduction of total expenses in the Statement of Operations.

Accounting and legal services fees

Pursuant to the Service Agreement, the Portfolio will reimburse the Adviser for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services of the Portfolio, including the preparation of all tax returns, annual, semiannual and periodic reports to shareholders and the preparation of all regulatory reports. These expenses are allocated based on the relative share of net assets of each John Hancock LifeCycle Portfolio at the time the expense was incurred.

The accounting and legal services fees incurred for the year ended August 31, 2009, were equivalent to an annual effective rate of 0.02% of the Portfolio’s average daily net assets.

Distribution and service plans

The Trust has a Distribution Agreement with the Distributor. The Portfolio has adopted Distribution Plans with respect to Class A, Class B, Class C, Class 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 Portfolio. Accordingly, the Portfolio makes daily payments to the Distributor at an annual rate not to exceed 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

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may be service fees, as defined by the Conduct Rules of the Financial Industry Regulatory Authority. Under the Conduct Rules, curtailment of a portion of the Portfolio’s 12b-1 payments could occur under certain circumstances.

The Portfolio has also adopted a Service Plan with respect to Class R, Class R1, Class R2, Class R3, Class R4 and Class R5 shares (the “Service Plan”). Under the Service Plan, the Portfolio pays 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, respectively, for certain other services.

Sales charges

Class A shares are assessed up-front sales charges of up to 5% of the net asset value of such shares. During the year ended August 31, 2009 the Distributor received net up-front sales charges of $77,564 with regard to sales of Class A shares. Of this amount, $12,748 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $64,100 was paid as sales commissions to unrelated broker-dealers and $716 was paid as sales commission to affiliated to sales personnel.

Class B shares that are redeemed within six years of purchase are subject to a contingent deferred sales charge (“CDSC”) at declining rates, beginning at 5.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Class C shares that are redeemed within one year of purchase are subject to a CDSC at a rate of 1.00% of the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from the CDSCs are paid to the Distributor and are used, in whole or in part, to defray its expenses for providing distribution-related services to the Portfolio in connection with the sale of Class B and Class C shares. During the year ended August 31, 2009, CDSCs received by the Distributor amounted to $1,987 for Class B shares and $1,037 for Class C shares.

Transfer agent fees

The Portfolios have a transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an indirect subsidiary of MFC. The transfer agent fees are made up of three components:

• The Fund pays a monthly transfer agent fee at an annual rate of 0.05% of each class’s average daily net assets for all classes;

• a monthly fee based on an annual rate of $16.50 per shareholder account; and

• Signature Services is reimbursed for certain out-of-pocket expenses.

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 expired December 31, 2008.

In addition, Signature Services 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. For the year ended

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August 31, 2009, the transfer agent voluntary fees reductions amounted to $267 for Class B, $3 for Class R, $21 for Class R1 and $24 for Class R2 and is reflected as a reduction of total expenses in the Statement of Operations.

The Portfolio may receive earnings credits from the transfer agent as a result of uninvested cash balances. These credits are used to reduce a portion of the Portfolio’s transfer agent fees and out of pocket expenses. During the year ended August 31, 2009, there were no earning credits received by the Portfolio.

Class level expenses for the year ended August 31, 2009, were as follows:

						State
		Distribution and		Transfer agent		registration		Printing and
Share Class		service fees		fees		fees		postage fees
Class A	$	23,707	$	8,502	$	11,460	$	4,863
Class B		3,437		1,575		10,364		22
Class C		35,301		4,792		10,766		5,197
Class R		596		237		10,370		2
Class R1		447		270		10,370		1
Class R2		450		416		10,816		2
Class R3		858		262		10,370		1
Class R4		250		146		10,370		2
Class R5		2		137		10,474		1
Class 1		98,746		—		—		—
Total	$	163,794	$	16,337	$	95,360	$	10,091

6. Trustee Fees

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

7. Portfolio share transactions

Share transactions for the Portfolio for the years ended August 31, 2009 and 2008, were as follows:

	Year ended						Year ended
	8/31/09						8/31/08
	Shares			Amount			Shares			Amount
Class A shares
Sold		545,003		$	3,994,463			823,146		$	8,271,824
Distributions reinvested		55,429			386,973			26,078			261,289
Repurchased		(779,128	)		(5,539,141	)		(141,454	)		(1,376,430	)
Net increase (decrease)		(178,696	)	$	(1,157,705	)		707,770		$	7,156,683
Class B shares
Sold		22,018		$	165,426			27,292		$	280,517
Distributions reinvested		1,151			8,130			1,270			12,810
Repurchased		(20,436	)		(135,656	)		(20,551	)		(201,914	)
Net increase		2,733		$	37,900			8,011		$	91,413
Class C shares
Sold		69,929		$	548,685			665,373		$	6,704,880
Distributions reinvested		26,823			186,036			11,420			114,105
Repurchased		(461,577	)		(3,227,062	)		(135,683	)		(1,322,073	)
Net increase (decrease)		(364,825	)	$	(2,492,341	)		541,110		$	5,496,912
Class R shares
Sold		38		$	290			4,734		$	45,493
Distributions reinvested		600			4,127			394			3,963
Repurchased		(23	)		(164	)		(4,741	)		(45,064	)
Net increase		615		$	4,253			387		$	4,392
Class R1 shares
Sold		18,446		$	121,016			115		$	1,135
Distributions reinvested		662			4,558			404			4,064
Repurchased		(17,457	)		(108,906	)		—			—
Net increase		1,651		$	16,668			519		$	5,199
Class R2 shares
Sold		66,186		$	474,889			10,844		$	108,356
Distributions reinvested		1,272			8,752			531			5,321
Repurchased		(62,136	)		(451,469	)		(5,468	)		(52,471	)
Net increase		5,322		$	32,172			5,907		$	61,206
Class R3 shares
Sold		14,471		$	109,458			9,187		$	95,388
Distributions reinvested		1,184			8,181			674			6,767
Repurchased		(13,447	)		(88,456	)		(684	)		(6,788	)
Net increase		2,208		$	29,183			9,177		$	95,367
Class R4 shares
Sold		5,323		$	37,453			97		$	946
Distributions reinvested		780			5,387			440			4,426
Net increase		6,103		$	42,840			537		$	5,372
Class R5 shares
Sold		2,657		$	18,703			980		$	9,618
Distributions reinvested		846			5,863			474			4,769
Repurchased		(57	)		(386	)		(1	)		(8	)
Net increase		3,446		$	24,180			1,453		$	14,379
Class 1 shares
Sold		15,710,756		$	112,536,786			22,765,338		$	228,178,574
Distributions reinvested		1,724,700			11,943,271			565,986			5,643,203
Repurchased		(9,664,087	)		(68,124,832	)		(7,198,772	)		(71,496,368	)
Net increase		7,771,369		$	56,355,225			16,132,552		$	162,325,409
Net increase		7,249,926		$	52,892,375			17,407,423		$	175,256,332

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8. Purchases and sales of securities

Purchases and proceeds from sales of securities, other than short-term securities, during the year ended August 31, 2009, aggregated $194,518,681 and $149,758,325, respectively.

9. Investment in affiliated underlying funds

The Portfolio invests primarily in underlying funds that are managed by affiliates of the Adviser. The Portfolio does not invest in affiliated underlying funds for the purpose of exercising management or control; however the Portfolio’s investments may represent a significant portion of each underlying fund’s net assets. For the year ended August 31, 2009, the Portfolio held 5% or more of the following underlying fund’s net assets:

Portfolio Affiliate Class NAV	Percentage of Underlying Funds’ Net Assets
Investment Quality Bond	5.49%

10. Subsequent Events

The Portfolio was terminated and liquidated on October 23, 2009. The termination and liquidation of the Portfilio was approved by the Board of Trustees on June 26, 2009.

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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 John Hancock Lifecycle Retirement Portfolio (the “Portfolio”) at August 31, 2009, the results of its operations, the changes in its 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, 2009 by correspondence with the custodian, transfer agent, and brokers, and the application of alternative auditing procedures where securities purchased confirmations had not been received, provide a reasonable basis for our opinion.

As disclosed in Note 10 to the Financial Statements, the Portfolio was liquidated on October 23, 2009.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 23, 2009

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Tax Information (Unaudited)

For federal income tax purposes, the following information is furnished with respect to the distributions of the Portfolio, if any, paid during its taxable year ended August 31, 2009.

The Portfolio has designated distributions to shareholders of $917,579 as a long-term capital gain dividend.

With respect to the ordinary dividends paid by the Portfolios for the year ended August 31, 2009, 17.93% of the dividends qualifies for the corporate dividends-received deduction.

The Portfolio hereby designates the maximum amount allowable of its net taxable income as qualified dividend income as provided in the Jobs and Growth Tax Relief Reconciliation Act of 2003. This amount will be reflected on Form 1099-DIV for the calendar year 2009.

Shareholders will be mailed a 2009 U.S. Treasury Department Form 1099-DIV in January 2010. This will reflect the total of all distributions that are taxable for calendar year 2009.

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John Hancock Funds II

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 (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 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”).

Approval of Advisory Agreement

          At its meeting on May 28-29, 2009, the Board, including all the Independent Trustees, approved the Advisory Agreement.

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          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 arms-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,

          (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

          (e) considered that the Adviser should be entitled to earn a reasonable level of profits in exchange for the level of services it provide 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’ anticipated level of profitability 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.

27

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

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

28

Approval of Subadvisory Agreements

          At its meeting on May 28-29, 2009, 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 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 arms-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, the Trustees reviewed the subadvisory fee to be paid to the subadviser for each Fund and concluded that the subadvisory fee to be paid to the subadviser with respect to each Fund 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 and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of a Fund and those of its underlying portfolios.

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

29

JOHN HANCOCK FUNDS II

APPENDIX A

LIFECYCLE RETIREMENT PORTFOLIO

PORTFOLIO (SUBADVISER)	PERFORMANCE OF PORTFOLIO, AS OF MARCH 31, 2009	FEES AND EXPENSES	OTHER COMMENTS
JHF II Lifecycle Retirement (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. Net management 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 took into account management’s proposed plan to liquidate the Fund.

*Deutsche Investment Management America Inc. provides subadvisory consulting services to MFC Global (U.S.A.) in its management of the Portfolio.

30

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

		Number of
Name, Year of Birth	Trustee	John Hancock
Position(s) held with Fund	of Fund	funds overseen
Principal occupation(s) and other directorships during past 5 years	since1	by Trustee
Charles L. Bardelis, 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, 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).
Theron S. Hoffman,2 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, 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, Born: 1946	2005	212
Chairman of the Board of John Hancock Funds II; Managing Director, Wydown Group (finan- cial 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 (since 1995); and Connecticut River Bancorp, Director (since 1998); Virtus Investment Management (since 2009); and Emerson Investment Management (since 2000). Trustee of John Hancock Trust (since 2004) and former Trustee of John Hancock Funds III (2005–2006).
Steven M. Roberts,2 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).

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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust.

2

Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

31

Annual report | Lifecycle Retirement

Trustee Emeritus
		Number of
Name, Year of Birth	Trustee	John Hancock
Position(s) held with Fund	of Fund	funds overseen
Principal occupation(s) and other directorships during past 5 years	since	by Trustee
John D. Richardson,1 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     Mr. Richardson became a non-voting Trustee Emeritus on December 14, 2006.

Non-Independent Trustees¹

		Number of
Name, Year of Birth	Trustee	John Hancock
Position(s) held with Fund	of Fund	funds overseen
Principal occupation(s) and other directorships during past 5 years	since1,2	by Trustee
James R. Boyle,2 Born: 1959	2005	264
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,3,4 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	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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.
2	Mr. Boyle is an “interested person” (as defined in the 1940 Act) due to his position with Manulife Financial Corporation (or its affiliates), the ultimate parent of the Adviser.
3	Ms. Fey was appointed by the Board as Trustee on September 26, 2008.
4	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.

32

Lifecycle Retirement | Annual report

Principal officers who are not Trustees
Name, age
Position(s) held with Portfolio	Officer of
Principal occupation(s) and	Portfolio
directorships during past 5 years	since
Hugh McHaffie, Born: 1959	2009
President
Executive Vice President, John Hancock Wealth Management (since 2006, including prior positions); Senior Vice President, Individual Business Product Management, MetLife, Inc. (1999–2006); Vice President, Annuity Product Management, John Hancock Life Insurance Company (1990–1999).
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).
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).
Michael J. Leary, Born: 1965	2007
Treasurer
Vice President, John Hancock Life Insurance Company (U.S.A.) and Treasurer for John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since May 2009); Assistant Treasurer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2007–2009); Vice President and Director of Fund Administration, JP Morgan (2004–2007); Vice President and Senior Manager of Fund Administration, JP Morgan (1993–2004); Manager, Ernst & Young, LLC (1988–1993).
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).
John G. Vrysen, Born: 1955	2007
Chief Operating Officer (since 2005)
Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkeley Group, John Hancock Investment Management Services, LLC and John Hancock Funds, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, the Adviser, The Berkeley Group, Manulife Financial Corporation Global Investment Management (U.S.), LLC, John Hancock Investment Management Services, LLC, John Hancock Funds, LLC, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005–2007); Vice President, Manulife Financial Corporation (until 2006).

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.

33

Annual report | Lifecycle Retirement

More information

Trustees

James M. Oates, Chairman**

James R. Boyle†

Grace K. Fey†

Charles L. Bardelis*

Peter S. Burgess*

Theron S. Hoffman**

Hassell H. McClellan**

Steven M. Roberts*

John D. Richardson, Trustee Emeritus

*Member of the Audit Committee

**Member of the Compliance Committee

†Non-Independent Trustees

Officers

Hugh McHaffie

President

Thomas M. Kinzler

Secretary and Chief Legal Officer

Francis V. Knox, Jr.

Chief Compliance Officer

Michael J. Leary

Treasurer

Charles A. Rizzo

Chief Financial Officer

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 and Trust Company

Transfer agent

John Hancock Signature Services, Inc.

Legal counsel

K&L Gates LLP

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

The Fund’s complete list of portfolio holdings, for the first and third fiscal quarters, is filed with the SEC on Form3N-Q. The Fund’s Form N-Q is available on our Website and the SEC’s Website, www.sec.gov, and can be reviewed and copied (for a fee) at the SEC’s Public Reference Room in Washington, DC. Call 1-800-SEC-0330 to3receive information on the operation of the SEC’s Public Reference Room.

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

You can also contact us:
1-800-225-5291	Regular mail:	Express mail:
jhfunds.com	John Hancock Signature Services, Inc.	John Hancock Signature Services, Inc.
	P.O. Box 9510	Mutual Fund Image Operations
	Portsmouth, NH 03802-9510	164 Corporate Drive
		Portsmouth, NH 03801

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

Lifecycle Retirement | Annual report

John Hancock Funds II
Annual Report — Table of Contents

Manager’s Commentary and Fund Performance (See below for each Fund’s page #) 3

Shareholder Expense Examples 63

Portfolio of Investments (See below for each Fund’s page #) 69

Statements of Assets and Liabilities 376

Statements of Operations 388

Statements of Changes in Net Assets 400

Financial Highlights 410

Notes to Financial Statements 422

Report of Independent Registered Public Accounting Firm 492

Tax Information 493

Evaluation of Advisory and Subadvisory Agreements by the Board of Trustees 495

Appendix A 498

Trustees and Officers Information 514

For More Information 517

Fund	Manager’s Commentary & Fund Performance		Portfolio of Investments
Active Bond Fund		4		69
All Cap Core Fund		5		87
All Cap Growth Fund		6		90
All Cap Value Fund		7		92
Alpha Opportunities Fund		8		94
Alternative Asset Allocation Fund		9		99
American Diversified Growth & Income Portfolio		10		99
American Fundamental Holdings Portfolio		11		99
American Global Diversification Portfolio		12		100
Blue Chip Growth Fund		13		100
Capital Appreciation Fund		14		102
Core Bond Fund		15		103
Emerging Markets Value Fund		16		111
Emerging Small Company Fund		17		125
Equity-Income Fund		18		127
Fundamental Value Fund		19		129
Global Agribusiness Fund		20		131
Global Bond Fund		21		132
Global Infrastructure Fund		22		140
Global Real Estate Fund		23		141
Global Timber Fund		24		143
High Income Fund		25		144
High Yield Fund		26		148
Index 500 Fund		27		156
International Equity Index Fund		28		162
International Opportunities Fund		29		180
International Small Cap Fund		30		182
International Small Company Fund		31		183
International Value Fund		32		208
Investment Quality Bond Fund		33		209
Large Cap Fund		34		220
Large Cap Value Fund		35		222
Mid Cap Index Fund		36		223
Mid Cap Stock Fund		37		229
Mid Cap Value Equity Fund		38		231
Mid Value Fund		39		233
Natural Resources Fund		40		236
Real Estate Equity Fund		41		237
Real Estate Securities Fund		42		237
Real Return Bond Fund		43		238
Short Term Government Income Fund		44		242
Small Cap Growth Fund		45		242
Small Cap Index Fund		46		244
Small Cap Opportunities Fund		47		263
Small Cap Value Fund		48		274
Small Company Growth Fund		49		275
Small Company Value Fund		50		277
Smaller Company Growth Fund		51		280
Spectrum Income Fund		52		292
Strategic Bond Fund		53		323
Strategic Income Fund		54		333
Total Bond Market Fund		55		340
Total Return Fund		56		348
U.S. Government Securities Fund		57		356
U.S. High Yield Bond Fund		58		359
U.S. Multi Sector Fund		59		365
Value Fund		60		370
Value & Restructuring Fund		61		371
Vista Fund		62		372

 

2

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, 2009. The views expressed are those of the portfolio manager as of August 31, 2009, 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 Trust 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. “Barclays Capital” is a registered trademark of Barclays Bank PLC. ”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.

3

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  4 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
Financial	22.14
Federal National Mortgage Association	20.06
Mortgage Securities	14.85
Energy	7.66
Communications	5.41
Utilities	4.98
Consumer, Non-cyclical	4.70
Consumer, Cyclical	2.79
U.S. Treasury Notes	2.63
Industrial	2.59

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Active Bond Class NAV returned +8.73%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Declaration Commentary:

Market Environment  4 Short-term interest rates fell sharply as the Federal Reserve focused on providing maximum liquidity to combat the financial crisis. Over the course of the year, the market and the economy responded to many historic events: the worst housing market since the Great Depression, the failure of Lehman Brothers, the conservatorship of the Fannie Mae and Freddie Mac, and the bailouts of AIG, Chrysler and General Motors. The government response to the crisis was swift and in most cases effective. The Troubled Asset Relief Program (TARP) stabilized many financial institutions. The Term Asset-Backed Securities Loan Facility (TALF) rejuvenated the market for asset-backed securities and commercial mortgage-backed securities.

The Fed kept the commercial paper market functioning. Equity markets bottomed in March and then recovered half of their losses, finishing down roughly 20% for the 12-month period. The financial crisis has abated now to the point that special Fed liquidity programs are being unwound. It was a very challenging market to navigate, with the credit crisis continuing to unfold and economy shrinking and going through massive job losses, while certain asset classes recovered so strongly that they finished the period at pre-crisis spread levels.

The portfolio outperformed the benchmark as fixed income credit sectors initially sold off, but then rallied later in the period. The portfolio added exposure to corporate credit and commercial mortgage-backed securities at historically wide spread levels, which greatly helped performance. Specifically, adding exposure to bank and finance, insurance and REITS was beneficial. Non-agency mortgage sectors failed to recover fully as the abysmal housing market weighed on performance.

The U.S. economy is expected to transition to a period of sluggish growth from the current recession. Growth will come from business investment, though a rebound in consumer spending is hard to foresee as unemployment remains high. The Fed is expected to leave interest rates on hold until early 2010 though regional reports of recovery are increasing odds of a rate hike. Credit markets have recovered dramatically, though some areas of value remain in corporate bonds and commercial mortgage-backed securities.

MFC Commentary:

Market Environment  4 U.S. bonds posted positive results for the 12-month period despite tremendous market volatility and unprecedented turmoil in the economy and Financial sector. The period began with a severe economic downturn and a liquidity crisis in the credit markets that crippled the financial sector, leading to the bankruptcy or takeover of several major financial institutions. In this environment, Treasury bonds and other high-quality securities posted strong gains amid a substantial flight to quality, while corporate bonds declined sharply as investors shunned riskier securities. In early 2009, however, market conditions changed as the federal government’s efforts to thaw the credit markets, shore up the Financial sector, and stimulate economic growth began to bear fruit. By mid-2009, the U.S. economy was showing signs of stabilization, and liquidity in the credit markets had gradually improved. As a result, bond market leadership shifted — a more positive outlook led to a rally in riskier assets, with corporate bonds posting the best returns, while Treasury securities lagged.

The portfolio’s exposure to corporate bonds hurt performance in the beginning of the period. However, a move to increase corporate bond exposure in late 2008 and early 2009, when corporate bonds were trading at significantly depressed valuations, contributed to the portfolio’s outperformance of its benchmark. At the beginning of the 12-month period, corporate bonds made up about a third of the portfolio, which was low by historical standards. However, as we took advantage of tremendous price dislocations in the corporate bond market, the portfolio’s corporate bond holdings increased to more than half of the portfolio by the end of the period. This strategy proved favorable as corporate bonds outperformed by a substantial margin in the last six months. The fund’s limited exposure to Treasury bonds also added value as these securities underperformed.

We believe that the economy is in a nascent recovery phase that appears to be sustainable, given the enormous amount of federal stimulus in place. However, we expect the recovery to progress at a gradual pace. Despite the rebound in corporate bonds so far in 2009, valuations are comparable to those in late 2002, the peak of the last recession. As a result, we still believe this segment of the bond market is attractively valued.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Active Bond Class 1 (began 10/15/05)		8.68	%	—	—	4.20	%		8.68	%	—	—	17.31	%
Active Bond Class NAV (began 10/27/05)		8.73	%	—	—	4.39	%		8.73	%	—	—	17.98	%
Barclays Capital U.S. Aggregate Bond (10/15/05)2,3,4		7.94	%	—	—	5.77	%		7.94	%	—	—	24.33	%
Barclays Capital U.S. Aggregate Bond Index (10/27/05)2,3,4		7.94	%	—	—	5.92	%		7.94	%	—	—	24.75	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.72% and Class NAV – 0.67%.

4

All Cap Core Fund
Subadviser: Deutsche Investment Management Americas Inc.
Portfolio Managers: Robert Wang and James Francis

INVESTMENT OBJECTIVE & POLICIES  4 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	22.06
Industrial	12.16
Financial	11.61
Communications	10.07
Energy	8.70
Technology	7.51
Consumer, Cyclical	5.82
Basic Materials	5.14
Utilities	3.14

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the All Cap Core Class NAV returned –20.07%, compared to the –18.62% return of the Russell 3000 Index.

Market Environment  4 The last 12 months was one of the most extreme periods in recent stock market history. The final four months of 2008 witnessed the collapse of Lehman Brothers and AIG as well as the demise of several major banks including Wachovia and Washington Mutual. 2008 ended on a positive note as the markets rallied in December. However, recovery hopes were dashed after the market swooned in the first quarter. Since March, financial markets have recovered dramatically as it appears the economy is on the mend. The case for recovery has been bolstered by the many Fed-sponsored lending programs that have helped restore liquidity to the market. In addition, several federal programs, including “Cash for Clunkers” and the first-time homebuyer credit, have enticed consumers to resume making big-ticket purchases, a key component of economic growth.

Housing is showing significant improvements as evidenced by the most recent housing report, which showed that new home sales, in line with gains in existing home sales, surged 9.6% in July following an upward revised 9.1% surge in June. The 433,000 annual unit pace is the best since September 2008. The strong sales pulled down new homes on the market to 271,000 versus 280,000 in June and down from 419,000 a year ago. The 271,000 level is the lowest since 1993. Supply at the current sales rate is down to 7.5 months, the lowest level since April 2007 and well down from June’s 8.5 months.

All told, we expect the recovery to continue. However, the levels of growth should be sluggish due to continued job losses and the large amounts of excess productive capacity in the U.S. and around the globe.

The fund underperformed its benchmark during the period. Stocks within the banks, consumer durables and apparel, and materials industry groups contributed most to relative performance. The largest detractors from relative performance were energy, pharmaceuticals and biotechnology, and transportation.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
All Cap Core Class NAV (began 4/28/06)		–20.07	%	—	—	–6.97	%		–20.07	%	—	—	–21.45	%
Russell 3000 Index2,3,4		–18.62	%	—	—	–5.31	%		–18.62	%	—	—	–16.66	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.80%.

5

All Cap Growth Fund
Subadviser: Invesco AIM Capital Management, Inc.
Portfolio Managers: Robert J. Lloyd & Ryan A. Amerman

INVESTMENT OBJECTIVE & POLICIES  4 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	26.09
Technology	17.52
Industrial	13.57
Consumer, Cyclical	11.82
Communications	11.04
Financial	6.53
Energy	5.77
Basic Materials	2.70

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the All Cap Growth Class 1 returned –23.94%, compared to the –17.17% return of the Russell 3000 Growth Index.

Market Environment  4 Major U.S. equity markets fell by double digits during the period, as significant problems in the credit markets, weakness in the housing market, rising energy and food prices and a deteriorating outlook for corporate earnings led to a global economic recession. However, global equity markets began to recover some of these losses in early March 2009.

The Fund’s key detractors from relative results versus its benchmark included Energy, Industrials and Materials, driven largely by poor stock selection and an overweight position in late 2008, when many stocks in these sectors were battered by the global economic slowdown. Underperformance in the Information Technology and Consumer Discretionary sectors was driven by stock selection and an underweight position in early 2009 when many stocks in these sectors rallied as the market began to rebound.

Among the Fund’s key contributors to relative performance were Telecommunications and Utilities, driven primarily by good stock selection. Outperformance in the Financials sector was due to stock selection and an underweight position when many of these stocks had weak performance because of the credit crisis.

Early in the period, the portfolio had significant exposure to sectors benefiting from global economic expansion and development, including Energy, Materials and Industrials. During the fourth quarter of 2008, we repositioned the portfolio for an economic recession. We significantly reduced the Fund’s exposure to the Energy, Materials and Industrials sectors, and built overweight positions in more defensive sectors such as Health Care and Consumer Staples. This defensive positioning aided performance as the stock market faltered through early 2009. However, when the market began to recover in March, this defensive positioning hurt performance. We began to reposition the portfolio in April, as the economy showed signs of stabilizing and we identified companies with the potential for sustainable earnings growth in a more stable economic environment. This repositioning included a reduction in the more defensive Health Care and Consumer Staples sectors, and a significant increase in the more economically sensitive sectors, including Information Technology and Consumer Discretionary.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
All Cap Growth Class 1 (began 10/15/05)		–23.94	%	—	—	–5.10	%		–23.94	%	—	—	–18.37	%
Russell 3000 Growth Index2,3,4		–17.17	%	—	—	–0.78	%		–17.17	%	—	—	–2.97	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class 1, the net expense equals the gross expense and is 0.98%.

6

All Cap Value Fund
Subadviser: Lord, Abbett & Co. LLC
Portfolio Managers: Robert P. Fetch and Deepak Khana

INVESTMENT OBJECTIVE & POLICIES  4 To seek capital appreciation by investing in equity securities of U.S. and multinational companies in all capitalization ranges that are believed to be undervalued.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	21.84
Consumer, Non-cyclical	19.96
Industrial	14.41
Consumer, Cyclical	13.70
Energy	10.28
Technology	5.35
Basic Materials	3.77
Communications	1.61

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the All Cap Value Class NAV returned –14.34%, compared to the –20.30% return of the Russell 3000 Value Index.

Market Environment  4 The U.S. suffered a substantial slowdown in economic activity during the later half of 2008, marked by continuing weak housing prices, banks reluctant to lend money and a slowing job market. As we moved through 2009, however, we began to see early evidence of a bottoming in overall economic activity.

During the period, large-, mid- and small-cap stocks within the Russell 3000 Value Index all declined by double digits. Within Morningstar’s market capitalization definitions, the portfolio’s weighting in large-cap stocks at period end was 56.5% versus 69.7% for the benchmark. Exposure to mid-cap stocks was 38.3% versus 20.8%, and the small-cap allocation was 3.8% versus 9.5% for the portfolio and benchmark, respectively.

Health Care was the portfolio’s best contributing sector relative to the benchmark Index. Stock selection within the Consumer Staples sector also aided relative performance. An agricultural processor rose sharply in the poor stock market environment of late 2008 following a September quarter earnings result that far surpassed analysts’ expectations. Fears of a margin squeeze evaporated as corn prices fell dramatically in the second half of 2008.

Stock selection within the Energy sector was the largest detractor from performance. Stock selection within Technology also hurt relative performance somewhat.

PERFORMANCE TABLE 1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
All Cap Value Class 1 (began 10/15/05)		–14.42	%	—	—	1.36	%		–14.42	%	—	—	5.40	%
All Cap Value Class NAV (began 10/15/05)		–14.34	%	—	—	1.41	%		–14.34	%	—	—	5.58	%
Russell 3000 Value Index2,3,4		–20.30	%	—	—	–2.58	%		–20.30	%	—	—	–9.64	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  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 indices.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.97% and Class NAV – 0.92%.

7

Alpha Opportunities Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Kent Stahl, CFA and Gregg Thomas, CFA

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term total return by employing a “multiple sleeve structure” which means the Fund has several components that are managed separately in different investment styles. The Fund seeks to obtain its objective by combining these different components into a single fund. For purposes of the Fund, “total return” means growth of capital and investment income (dividends and interest).

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	16.61
Financial	15.15
Consumer, Cyclical	10.91
Industrial	10.38
Technology	10.06
Energy	9.86
Communications	7.82
Basic Materials	5.43
Investment Companies	1.14
Utilities	0.32

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 From its inception on October 7, 2008 to August 31, 2009, the Alpha Opportunities Class NAV returned +8.80%, compared to the –0.04% return of the Russell 3000 Index.

Market Environment  4 Global equity markets rose during the reporting period despite continuing difficulty in credit markets and recessionary struggles in countries across the globe. Equity markets bottomed in March 2009 before rebounding off of their lows, as many companies beat earnings expectations, driven by significant cost-cutting measures. Several countries began to report economic growth in August 2009 and declared that they had moved out of recession and into recovery.

Over the same period, six of the 10 sectors within the Russell 3000 Index registered positive returns. Information Technology (16.5%), Materials (8.7%) and Consumer Discretionary (8.5%) performed the best. Financials (–15.8%), Energy (–7.8%) and Industrials (–5.5%) performed the worst.

The fund’s relative outperformance was driven by both strong sector allocation and security selection decisions. The fund benefited from an underweight to and security selection within Financials, as well as an allocation to cash. Results in Health Care (overweight) and Consumer Staples (underweight) were also positive on both a sector allocation and security selection basis. Security selection within Materials and an underweight to Information Technology detracted from relative performance.

PERFORMANCE TABLE1	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Alpha Opportunities Class NAV (began 10/7/08)		—	—	—	—		—	—	—	8.80	%
Russell 3000 Index2,3,4		—	—	—	—		—	—	—	–0.04	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.07%.

8

Alternative Asset Allocation Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital by investing in “alternative asset classes”. The fund will allocate its assets among other funds in the John Hancock Funds complex and other investment companies, including ETFs, that emphasize alternative or non-traditional asset categories or investment categories. Alternative or non-traditional asset categories generally have a low correlation with the broad U.S. stock and bond market.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Emerging Markets	16.22
Real Estate	16.21
Bank Loan	13.53
Treasury Inflation-Protected Securities	11.58
Global Bond	9.64
International Small Cap	9.00
High Yield Bond	8.88
Exchange Traded Funds and Other	8.70
Natural Resources	6.24

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Fund Results  4 From its inception on January 2, 2009 to August 31, 2009, the Alternative Asset Allocation Class A returned +28.20%, compared to the +13.79% return of the Combined Index.

Market Environment  4 The eight months ended August 31, 2009 marked a period of extraordinary ups and downs for the U.S. stock market. Panic selling characterized the difficult months of January and February, as investors reacted to dismal economic news. There was virtually nowhere for investors to hide as the sharp selloff in the market was accompanied by steep losses in commodities, real estate and a number of other asset classes. Overall, U.S. stocks experienced their worst year since the Great Depression in 1931.

Most fixed income asset classes also struggled in early 2009. Facing a crisis of confidence, investors fled to the safety of Treasury securities, making the asset class one of the best-performing areas and one of the few to post positive returns during that time. On the opposite side, high-yield bonds suffered double-digit losses, and even many investment-grade corporate bonds did poorly.

However, equities began to rally vigorously in March. The spectacular gains were spurred by bargain hunting and a reduction in the desperate fear that had gripped market participants since the fall. Many equity asset classes outpaced the S&P 500 Index during the recovery. Global equity markets rallied as well, with riskier asset classes such as emerging markets producing especially strong returns (note that these returns were helped by considerable dollar weakness). The credit markets also improved in the second half of the period, buoyed by significant action on the part of the government. The segments that had sustained some of the worst damage in 2008, high-yield bonds and bank loans, performed best as investors began to shift assets back into riskier areas.

From an asset allocation standpoint, the portfolio benefited on the equity side from allocations to emerging market equities, international small cap equities and global real estate, all of which outperformed the S&P 500 Index. On the fixed income side, the portfolio’s results were buoyed by bank loans and high yield bonds, both of which outpaced the Barclay’s Capital Aggregate Bond Index. Conversely, an allocation to global bonds detracted from performance. From a manager perspective, Emerging Markets (Dimensional) added to performance by outperforming its benchmark, the MSCI Emerging Markets Index. Additionally, Natural Resources (Wellington) aided the portfolio’s results by beating its benchmark, the MSCI Global Natural Resources Index, while Real Return Bond (PIMCO) outpaced the Barclays Capital U.S. TIPS Index. Conversely, Floating Rate Income (WAMCO)underperformed the Barclays Capital U.S. High Yield Loan Index and detracted from the portfolio’s overall results.

PERFORMANCE TABLE2,6	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Alternative Asset Allocation Class A (began 1/2/09)		—	—	—	—		—	—	—	28.20	%
Combined Index3,4,5		—	—	—	—		—	—	—	13.79	%

 

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

2  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

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 represents 55% of the MSCI AC World Index and 45% Barclays Capital U.S. Aggregate Bond Index.

5  It is not possible to invest directly in an index.

6  Since inception, a portion of the Alternative Asset Allocation Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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. For Class A, the net expense equals the gross expense and is 1.65%.

9

American Diversified Growth & Income Portfolio*
*As of September 25, 2009, name changed to Core Diversified Growth & Income.
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital and income by investing in other funds and other investment companies. Under normal market conditions, the fund will generally invest between 65% and 75% of its assets in equity securities, which include securities held by the underlying funds, and between 25% and 35% of its assets in fixed income securities, which include securities held by the underlying funds.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy	23.94
Large Value	17.97
U.S. Large Cap	15.96
Intermediate Bond	14.10
Financial	6.04
International Mid Cap	4.99
International	4.99
Utilities	4.01
Diversified	3.99
High Yield Bond	2.01

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Fund Results  4 For the year ended August 31, 2009, the American Diversified Growth & Income Class 1 returned –11.47%, compared to the –11.69% return of the Combined Index.

Market Environment  4 The 12 months ended August 31, 2009 marked a period of extraordinary ups and downs for the U.S. stock market. Panic selling characterized the difficult months from September through February, as investors reacted to dismal economic news, including freefalling home prices, surging unemployment, and declining GDP. There was virtually nowhere for investors to hide as the sharp selloff in the market was accompanied by steep losses in commodities, real estate and a number of other asset classes. Overall, U.S. stocks experienced their worst year since the Great Depression in 1931.

Most fixed income asset classes also struggled in late 2008 and early 2009. Facing a crisis of confidence, investors fled to the safety of Treasury securities, making the asset class one of the best-performing areas and one of the few to post positive returns during that time. On the opposite side, high-yield bonds suffered double-digit losses, and even many investment-grade corporate bonds did poorly.

The market decline continued into early 2009; however equities began to rally vigorously in March. The spectacular gains were spurred by bargain hunting and a reduction in the desperate fear that had gripped market participants since the fall. Many equity asset classes outpaced the S&P 500 Index during the recovery. Global equity markets rallied as well, with riskier asset classes such as emerging markets producing especially strong returns (note that these returns were helped by considerable dollar weakness). The credit markets also improved in the second half of the period, buoyed by significant action on the part of the government. The segments that had sustained some of the worst damage in 2008, high-yield bonds and bank loans, performed best as investors began to shift assets back into riskier areas.

From an asset allocation standpoint, the portfolio benefited from exposure to international large cap equities, international small cap equities, emerging market equities, and global bonds. Conversely, an allocation to high yield bonds detracted from performance. From a manager perspective, The Investment Company of America contributed positively to results by outperforming the S&P 500 Index. EuroPacific Growth Fund, Capital World Growth and Income Fund, and New Perspective Fund also helped the portfolio’s overall results by outperforming their respective benchmarks. Conversely, The Bond Fund of America underperformed the Barclays Capital U.S. Aggregate Bond Index by a significant margin and detracted from the portfolio’s performance. Washington Mutual Investors Fund and American Capital World Bond Fund also caused a drag by lagging their respective benchmarks.

PERFORMANCE TABLE1,5	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		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)		–11.47	%	—	—	–11.82	%		–11.47	%	—	—	–13.68	%
Combined Index2,3,4		–11.69	%	—	—	–9.57	%		–11.69	%	—	—	–11.11	%

 

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  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 Barclays Capital U.S. Aggregate Bond Index.

4  It is not possible to invest directly in an index.

5  Since inception, a portion of the American Diversified Growth & Income Portfolio expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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. For Class 1, the net expense equals the gross expense and is 0.59%.

10

American Fundamental Holdings Portfolio*
*As of September 25, 2009, name changed to Core Fundamental Holdings Portfolio.
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital by investing in other funds and other investment companies. Under normal market conditions, the fund will generally invest between 55% and 65% of its assets in equity securities, which include securities held by the underlying funds, and between 35% and 45% of its assets in fixed income securities, which include securities held by the underlying funds.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Intermediate Bond	25.14
Energy	21.93
International	12.96
Large Value	11.96
U.S. Large Cap	11.96
Government	8.05
Utilities	8.00

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Fund Results  4 For the year ended August 31, 2009, the American Fundamental Holdings Class 1 returned –8.64%, compared to the –9.05% return of the Combined Index.

Market Environment  4 The 12 months ended August 31, 2009 marked a period of extraordinary ups and downs for the U.S. stock market. Panic selling characterized the difficult months from September through February, as investors reacted to dismal economic news, including freefalling home prices, surging unemployment, and declining GDP. There was virtually nowhere for investors to hide as the sharp selloff in the market was accompanied by steep losses in commodities, real estate and a number of other asset classes. Overall, U.S. stocks experienced their worst year since the Great Depression in 1931.

Most fixed income asset classes also struggled in late 2008 and early 2009. Facing a crisis of confidence, investors fled to the safety of Treasury securities, making the asset class one of the best-performing areas and one of the few to post positive returns during that time. On the opposite side, high-yield bonds suffered double-digit losses, and even many investment-grade corporate bonds did poorly.

The market decline continued into early 2009; however equities began to rally vigorously in March. The spectacular gains were spurred by bargain hunting and a reduction in the desperate fear that had gripped market participants since the fall. Many equity asset classes outpaced the S&P 500 Index during the recovery. Global equity markets rallied as well, with riskier asset classes such as emerging markets producing especially strong returns (note that these returns were helped by considerable dollar weakness). The credit markets also improved in the second half of the period, buoyed by significant action on the part of the government. The segments that had sustained some of the worst damage in 2008, high-yield bonds and bank loans, performed best as investors began to shift assets back into riskier areas.

From an asset allocation standpoint, the portfolio benefited from exposure to international equities, which outperformed the S&P 500 during the period. From a manager selection perspective, three of the five funds in the portfolio outperformed their individual benchmarks. Specifically, The Investment Company of America and The Income Fund of America both outpaced the S&P 500 Index, while EuroPacific Growth Fund beat the MSCI EAFE Index. On the negative side, The Bond Fund of America underperformed the Barclays Capital U.S. Aggregate Bond Index by a significant margin and detracted from the portfolio’s overall results. Washington Mutual Investors Fund also hurt performance by lagging the S&P 500 Index.

PERFORMANCE TABLE1,5	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		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)		–8.64	%	—	—	–9.18	%		–8.64	%	—	—	–10.65	%
Combined Index2,3,4		–9.05	%	—	—	–7.25	%		–9.05	%	—	—	–8.43	%

 

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 Barclays Capital U.S. Aggregate Bond Index.

4  It is not possible to invest directly in an index.

5  Since inception, a portion of the American Fundamental Holdings Portfolio expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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. For Class 1, the net expense equals the gross expense and is 0.54%.

11

American Global Diversification Portfolio*
*As of September 25, 2009, name changed to Core Global Diversification Portfolio.
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Steve Orlich and Scott Warlow

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital by investing in other funds and other investment companies. Under normal market conditions, the fund will generally invest a significant portion of its assets in securities, which include securities held by the underlying funds, of issuers located in a number of different countries throughout the world, excluding the U.S. and will generally invest between 65% and 75% of its assets in equity securities, which include securities held by the underlying funds, and between 25% and 35% of its assets in fixed income securities, which include securities held by the underlying funds.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

Sector Weighting*	% of Total
Intermediate Bond	20.99
International Small Cap	16.01
International Mid Cap	16.00
Diversified	12.00
International	10.00
U.S. Large Cap	10.00
Large Value	8.00
High Yield Bond	7.00

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the American Global Diversification Class 1 returned –8.11%, compared to the –8.97% return of the Combined Index.

Environment  4 The 12 months ended August 31, 2009 marked a period of extraordinary ups and downs for the U.S. stock market. Panic selling characterized the difficult months from September through February, as investors reacted to dismal economic news, including freefalling home prices, surging unemployment, and declining GDP. There was virtually nowhere for investors to hide as the sharp selloff in the market was accompanied by steep losses in commodities, real estate and a number of other asset classes. Overall, U.S. stocks experienced their worst year since the Great Depression in 1931.

Most fixed income asset classes also struggled in late 2008 and early 2009. Facing a crisis of confidence, investors fled to the safety of Treasury securities, making the asset class one of the best-performing areas and one of the few to post positive returns during that time. On the opposite side, high-yield bonds suffered double-digit losses, and even many investment-grade corporate bonds did poorly.

The market decline continued into early 2009; however equities began to rally vigorously in March. The spectacular gains were spurred by bargain hunting and a reduction in the desperate fear that had gripped market participants since the fall. Many equity asset classes outpaced the S&P 500 Index during the recovery. Global equity markets rallied as well, with riskier asset classes such as emerging markets producing especially strong returns (note that these returns were helped by considerable dollar weakness). The credit markets also improved in the second half of the period, buoyed by significant action on the part of the government. The segments that had sustained some of the worst damage in 2008, high-yield bonds and bank loans, performed best as investors began to shift assets back into riskier areas.

From an asset allocation standpoint, the portfolio benefited from exposure to emerging market equities, international small cap equities and international large cap equities, all of which outperformed the S&P 500 Index. Conversely, exposure to high yield bonds, which underperformed the Barclay’s Capital Aggregate Bond Index, detracted from performance. From a manager perspective, Capital World Growth and Income Fund and New Perspective Fund both added to performance by outperforming the MSCI World Index, while EuroPacific Growth Fund contributed positively by beating the MSCI EAFE Index. Conversely, The Bond Fund of America underperformed the Barclays Capital U.S. Aggregate Bond Index by a significant margin and detracted from the portfolio’s overall results. Additionally, New World Fund, SMALLCAP World Fund, and American High-Income Trust all caused a drag on performance by lagging their respective benchmarks.

PERFORMANCE TABLE1,5	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		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)		–8.11	%	—	—	–10.89	%		–8.11	%	—	—	–12.61	%
Combined Index2,3,4		–8.97	%	—	—	–9.60	%		–8.97	%	—	—	–11.13	%

 

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 Barclays Capital U.S. Aggregate Bond Index.

4  It is not possible to invest directly in an index.

5  Since inception, a portion of the American Global Diversification Portfolio expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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. For Class 1, the net expense equals the gross expense and is 0.75%.

12

Blue Chip Growth Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Larry J. Puglia

INVESTMENT OBJECTIVE & POLICIES  4 To provide long-term growth of capital with current income as a secondary 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
Communications	19.57
Consumer, Non-cyclical	19.04
Financial	16.76
Technology	16.18
Consumer, Cyclical	9.40
Energy	6.38
Industrial	6.12
Basic Materials	2.10
Utilities	0.62

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Blue Chip Growth Class NAV returned –17.90%, compared to the –18.25% return of the S&P 500 Index.

Market Environment  4 Although the portfolio could not avoid losses for the 12 months ended August 31, 2009, it held its value relatively well in a challenging market environment. Sector positioning significantly helped the portfolio’s results compared with the S&P 500 Index, but this was partially offset by relatively weak stock selection results.

The past 12 months has been one of the most volatile periods in U.S. market history, including both an historic decline in the fall of 2008 and an aggressive pursuit of recovery through 2009 to date. Ultimately, large-cap U.S. stocks, as represented by the S&P 500 Index, finished the 12 months with a loss of approximately 18%.

Reflecting a severe financial crisis and related credit crunch, Financials stocks led the 2008 market downdraft. Despite a strong recovery in 2009, they still had the worst results of any market sector for the year. Not far behind were the Energy, Industrials and Business Services, and Materials sectors, all of which were hampered by the deteriorating global economy. While all sectors declined for the period, stable growth segments, such as Health Care and Consumer Staples, held their value better than other sectors. Information Technology stocks also outperformed. After several years of retrenchment in that sector, many large Technology firms offered investors sound financials and attractive valuations.

The most meaningful contributor to performance was an underweight in Financials during a stretch where the sector had very poor results. We avoided or limited losses in firms that were hard hit by the financial crisis. However, we are becoming more constructive on Financials. We think government support, clearer regulation and an improved economy are all helping to stabilize the industry. Overweights in Information Technology and Health Care also added significant value. Within Health Care, we had relatively good results in both the biotechnology and health care services segments. Long-term, we saw an appealing combination of growth potential and attractive valuations in both sectors.

Among detractors, an underweight to Consumer Staples weighed on relative results, but we see limited long-term growth potential in this sector. Disappointing stock selection results in the Energy and Industrials and Business Services sectors also limited our outperformance for the period.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Blue Chip Growth Class 1 (began 10/15/05)		–17.95	%	—	—	–1.06	%		–17.95	%	—	—	–4.03	%
Blue Chip Growth Class NAV (began 10/15/05)		–17.90	%	—	—	–1.00	%		–17.90	%	—	—	–3.84	%
S&P 500 Index2,4,5		–18.25	%	—	—	–1.72	%		–18.25	%	—	—	–6.52	%

 

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  Since inception, a portion of the Blue Chip Growth Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.89% and Class NAV – 0.84%.

13

Capital Appreciation Fund
Subadviser: Jennison Associates LLC
Portfolio Managers: Michael Del Balso, Kathleen A. McCarragher and Spiros Segalas

INVESTMENT OBJECTIVE & POLICIES  4 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	27.80
Technology	21.52
Communications	14.58
Consumer, Cyclical	10.53
Energy	7.80
Financial	6.39
Basic Materials	1.67
Industrial	0.44

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Capital Appreciation Class NAV returned –12.39%, compared to the –16.76% return of the Russell 1000 Growth Index.

Market Environment  4 The year was marked by economic and market turmoil. The credit crisis that began in 2007 escalated in September 2008, with the collapse of Lehman Brothers, the U.S. government’s urgent takeover of several “too big to fail” financial institutions, and the distressed sales of a couple of large commercial banking franchises.

The credit crunch prompted unprecedented coordination between the Treasury Department and Federal Reserve to resuscitate credit markets and stabilize the financial system. These actions failed to thwart the most severe recession in recent history. However, a variety of government programs helped stabilize and stimulate the economy. U.S. equity markets rebounded on signs of economic stabilization in the last half of the period. Rising foreclosures, low interest rates, and the increased availability of mortgage credit stimulated housing activity. Businesses continued to rein in labor costs, contributing to a national unemployment rate of 9.7% by the end of August 2009.

The fund outperformed its benchmark, largely on solid stock selection in the Health Care, Consumer Discretionary, Financials, Materials and Energy sectors. Health Care holdings benefited from an improved pricing environment, growing unit demand, industry consolidation, and differentiated product offerings. In Consumer Discretionary, one key holding, an Internet retailer, benefited from the rise in e-commerce. The fund’s top-performing Financials stock rose on solid fixed income, currency, and commodities revenues, a strong balance sheet, and steady navigation of the troubled market environment. In Energy, holdings of note benefited from differentiated international positions, offshore drilling execution, and the promise of production growth. An overweight position in Health Care and an underweight stance in Industrials also worked well.

Stock selection detracted from the fund’s return relative to the benchmark in Industrials, where holdings declined on concerns that the financial crisis and global slowdown would curtail infrastructure investments and weaken pricing power.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Capital Appreciation Class 1 (began 10/15/05)		–12.37	%	—	—	–0.80	%		–12.37	%	—	—	–3.08	%
Capital Appreciation Class NAV (began 10/15/05)		–12.39	%	—	—	–0.74	%		–12.39	%	—	—	–2.85	%
Russell 1000 Growth Index2,3,4		–16.76	%	—	—	–0.79	%		–16.76	%	—	—	–3.03	%

 

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  Russell 1000 Growth Index is an unmanaged index composed of the Russell 1000 securities that have a greater-than-average growth orientation.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.80% and Class NAV – 0.75%.

14

Core Bond Fund
Subadviser: Wells Capital Management, Inc.
Portfolio Managers: William Stevens, Thomas O’Connor, Lynne Royer, Troy Ludgood

INVESTMENT OBJECTIVE & POLICIES  4 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	27.00
Mortgage Securities	17.52
U.S. Treasury Notes	13.50
Financial	7.42
Federal Home Loan Mortgage Corp.	6.43
Asset Backed Securities	4.72
Consumer, Non-cyclical	3.04
Communications	3.03
U.S. Treasury Bonds	3.01
Energy	2.76

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Core Bond Class NAV returned +9.69%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Market Environment  4 This fiscal year began with the U.S. subprime and liquidity crisis evolving into a global credit and liquidity freeze that tipped the global economy into recession. In September, Lehman Brothers filed for bankruptcy, AIG was rescued by the Federal Reserve, and Bank of America purchased Merrill Lynch with eventual help from the U.S. Treasury. The Fed and Treasury moved aggressively and creatively to stabilize the markets through a series of actions including significant federal funds rate cuts, placing Fannie Mae and Freddie Mac into conservatorship, and committing funds to buy Agency mortgage-backed securities and Agency debt. In addition, the Troubled Asset Relief Program (TARP) was created to help unclog the financial markets.

Most recently, economic data has turned more positive, hinting at a possible bottoming in the economic cycle. While weak jobs numbers remains the Achilles’ heel of a broad-based economic recovery, the market has found hope in improved housing data, vehicle sales, and business and consumer confidence. Risk appetites have increased, resulting in higher than average returns for fixed income assets.

While volatility and liquidity over the last year presented near-term challenges, we viewed the pricing of fixed income assets as providing historic opportunities to buy very cheap assets. Consistent with our investment process, security selection was the largest contributor to performance. Security selection and relative value trading in structured products, especially pass-through mortgage-backed securities and commercial mortgage-backed securities (CMBS), all helped drive performance. Timely shifts in the fund’s allocation to corporate bonds enhanced performance. Security selection, particularly in non-corporates, telecommunications, REITs, cable/media and health care, added to results. Opportunistic positioning in the bank/finance sector and not owning some of the worst-performing finance names, enhanced return. Purchases of new issues in health care and telecommunications also added to relative returns. Overweights in CMBS and asset-backed securities, while detracting from performance in late 2008, were large contributors to performance in 2009, as yield spreads tightened significantly. Security selection in high quality asset-backed securities benefited our relative returns. Limited exposure to non-agency mortgages and underweights in Agency and Treasury debt early in the fiscal year detracted from performance.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Core Bond Class 1 (began 10/15/05)		9.71	%	—	—	5.80	%		9.71	%	—	—	24.45	%
Core Bond Class NAV (began 10/15/05)		9.69	%	—	—	5.84	%		9.69	%	—	—	24.63	%
Barclays Capital U.S. Aggregate Bond Index2,3,4		7.94	%	—	—	5.77	%		7.94	%	—	—	24.33	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.80% and Class NAV – 0.75%.

15

Emerging Markets Value Fund
Subadviser: Dimensional Fund Advisors LP
Portfolio Manager: Karen E. Umland

INVESTMENT OBJECTIVE & POLICIES  4 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	29.40
Basic Materials	15.39
Industrial	14.92
Consumer, Cyclical	9.35
Consumer, Non-cyclical	6.58
Diversified	5.21
Energy	4.64
Technology	3.76
Communications	1.53
Utilities	1.39

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Emerging Markets Value Class NAV returned +1.07%, compared to the –9.71% return of the MSCI Emerging Markets Index.

Market Environment  4 The 12 months from September 2008 to August 2009 were characterized by two completely different periods. From September 2008 to early March 2009, global equity markets fell by about 50%, as the global financial crisis and the slowdown in many of the world’s leading economies became more severe. Then, from early March to August 2009, equity markets around the world, especially in emerging markets, rebounded sharply, as fears of a systemic collapse of the world economy abated and financial markets began to show some signs of stabilization. Throughout this period, volatility and divergent performance in emerging markets was at extraordinarily high levels, especially in late 2008 and the early part of 2009. As a result, small differences in portfolio weights between different strategies or between strategies and benchmarks often resulted in large differences in performance.

The fund’s lack of exposure to Russia, which underperformed relative to most emerging markets, and other allocation differences across countries had a large positive impact on relative performance. Composition differences within countries, especially in China and India, also had a strong positive impact on relative performance.

The portfolio’s overweight to deep value stocks, which greatly outperformed relative to growth stocks, and other differences in allocation along the value/growth dimensions had a large positive impact on relative performance. On the other hand, composition differences within various value and growth segments had a negative but weaker impact on relative performance.

The portfolio’s overweight to the smallest stocks, which outperformed all other market capitalization segments, and other differences in allocation had a strong positive impact on relative performance. Within the different market capitalization segments, especially among the smallest stocks, the portfolio’s baskets of securities generally outperformed those of the Index.

The fund’s overweight to the Consumer Discretionary sector, which outperformed most other sectors, and other differences in allocation across sectors added to results. Composition differences within the different sectors, especially in the financial sector, also greatly aided relative performance.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Emerging Markets Value Class NAV (began 5/1/07)		1.07	%	—	—	–1.15	%		1.07	%	—	—	–2.66	%
MSCI Emerging Markets Index2,3,4		–9.71	%	—	—	–3.36	%		–9.71	%	—	—	–7.68	%

 

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  MSCI Emerging Markets Index is an unmanaged index designed to measure the performance of developing markets.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.08%.

16

Emerging Small Company Fund
Subadviser: RCM Capital Management LLC
Portfolio Managers: Thomas J. Ross and Louise M. Laufersweiler

INVESTMENT OBJECTIVE & POLICIES  4 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.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	21.82
Technology	18.87
Consumer, Cyclical	15.96
Industrial	11.69
Financial	7.90
Communications	6.32
Energy	3.25
Basic Materials	2.49

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Emerging Small Company Class 1 returned –18.65%, compared to the –22.02% return of the Russell 2000 Growth Index.

Market Environment  4 U.S. small-cap growth equities have experienced an exceptionally volatile past 12 months. The financial crisis that battered equity markets through the latter half of 2008 and the beginning of 2009 reversed in March, and equities, particularly small caps, began to rally. While U.S. small-cap stocks lagged large caps over the year ended August 31, 2009, they have handily outperformed large caps coming off of the March 9th lows.

Relative returns were driven by strong stock selection within the Industrials, Energy and Technology sectors as well as by a defensive cash position relative to the benchmark. In contrast, an overweight to Financials, and weak selection within the Health Care, Consumer Staples and Consumer Discretionary sectors hurt.

Given their sensitivity to the macroeconomic environment as well as their reliance on capital markets, small caps were particularly affected by the deleveraging that occurred as the credit crisis unfolded. As the crisis accelerated in the final months of 2008, investors began selling assets perceived to be riskier and began hoarding cash and cash equivalents. As lending ground to a standstill globally, credit spreads spiked to historic levels, posing huge challenges for companies reliant on short-term lending. Between September 1, 2008 and the March 9, 2009 bottom, small-cap growth stocks lost 52%.

As credit markets began to thaw and volatility declined, small-cap stocks regained their footing. In line with previous market corrections, small-cap stocks led the rebound posting returns of 62% between the March low and August 31, 2009. Though small caps have performed very well since March, low-quality companies have rallied the most, posing a challenge for the fund, which focuses on high-quality small caps. As a result of the exceptionally strong performance of the smallest stocks, with the lowest share prices, and worst quality characteristics, a majority of active managers lagged the benchmark coming off the market bottom. However, as the summer wore on, investor focus appeared to shift back to company fundamentals, making it easier for active managers to outperform. By the end of August, active small-cap investors could point to a growing list of indicators that the low-quality rally was finally nearing an end.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Emerging Small Company Class 1 (began 10/15/05)		–18.65	%	—	—	–4.19	%		–18.65	%	—	—	–15.29	%
Russell 2000 Growth Index2,4,5		–22.02	%	—	—	–0.75	%		–22.02	%	—	—	–2.87	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Since inception, a portion of the Emerging Small Company Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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.

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. For Class 1, the net expense equals the gross expense and is 1.13%.

17

Equity-Income Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Brian C. Rogers

INVESTMENT OBJECTIVE & POLICIES  4 To provide substantial dividend income and also long-term capital appreciation. The Fund invests at least 80% of its net assets in equity securities, with at least 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	19.66
Energy	13.85
Industrial	11.58
Consumer, Non-cyclical	10.66
Consumer, Cyclical	9.48
Communications	8.53
Basic Materials	5.64
Technology	4.68
Utilities	4.61

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Equity Income Class NAV returned –15.68%, compared to the –20.27% return of the Russell 1000 Value Index.

Market Environment  4 The past 12 months saw the emergence of one of the greatest financial crises and economic contractions of the postwar era. The Russell 1000 Value Index posted a significant double-digit negative return for the one-year period, with all sectors declining. Industrials and Business Services, Financials and Materials were the hardest hit, reflecting the ongoing financial crisis, the restructuring of the U.S. auto industry, and declining commodity prices, respectively. The traditionally defensive Consumer Staples and Health Care sectors held up best, posting only single-digit losses.

Against that backdrop, the portfolio posted a double-digit negative return, but nonetheless outpaced its Russell index. Broadly speaking, stock selection helped relative results, while sector allocation detracted. The primary relative contribution came from stock choices within the Financials sector. The most beneficial positions were concentrated in the diversified financial services industry. We remain considerably underweight in this sector, focusing on individual firms that we believe are most likely to make it through the current turmoil.

Stock selection in Energy helped relative results as well. Energy has long been an important area of investment for the portfolio, with a focus on companies that are positioned to find and develop new capacity. We believe that economic recovery and increased emerging-market demand should both work in the favor of energy firms. Our holdings in Industrials and Business Services also held their value better than their benchmark peers. Within the sector, we favor both industrial conglomerates and more focused companies with strong business models, balance sheets and cash flows.

The most significant relative detractor came from Consumer Discretionary, where our beneficial overweight position was not enough to offset weak stock selection. Our focus in Consumer Discretionary is on media companies, particularly in the cable industry.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Equity-Income Class 1 (began 10/15/05)		–15.65	%	—	—	–0.90	%		–15.65	%	—	—	–3.44	%
Equity-Income Class NAV (began 10/15/05)		–15.68	%	—	—	–0.87	%		–15.68	%	—	—	–3.34	%
Russell 1000 Value Index2,4,5		–20.27	%	—	—	–2.63	%		–20.27	%	—	—	–9.82	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Since inception, a portion of the Equity-Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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.

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. For Class NAV, the net expense equals the gross expense and is 0.84%.

18

Fundamental Value Fund
Subadviser: Davis Selected Advisers, L.P.
Portfolio Managers: Christopher C. Davis and Kenneth Charles Feinberg

INVESTMENT OBJECTIVE & POLICIES  4 To seek growth of capital. The Fund invests primarily 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	27.42
Consumer, Non-cyclical	17.31
Energy	13.56
Consumer, Cyclical	10.38
Technology	6.34
Industrial	5.64
Communications	4.90
Basic Materials	2.24
Diversified	0.88
Utilities	0.17

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Fundamental Value Class NAV returned –18.75%, compared to the –18.25% return of the S&P 500 Index.

Market Environment  4 All sectors within the Index turned in negative performance. The sectors that posted the worst performance over the period were Financials, Industrials and Energy. The sectors that turned in the strongest (but still negative) performance were Consumer Staples, Health Care and Information Technology.

The Fund’s Financial companies outperformed the corresponding benchmark sector (–20% versus –29% for the Index), but they were still the largest detractors from performance. A higher relative average weighting in this sector (28% versus 13% for the Index) detracted from performance. The second largest detractor from performance was the Energy sector. The Fund’s Energy companies underperformed the corresponding benchmark sector (–29% versus –28% for the Index) and a higher relative average weighting (17% versus 13% for the Index) also held back performance. Consumer Staples companies detracted from performance. The Fund’s Consumer Staples holdings underperformed the corresponding benchmark sector (–16% versus –9% for the Index).

Health Care companies made a positive contribution to the Fund’s performance. The portfolio’s Health Care companies outperformed the corresponding benchmark sector (flat versus –11% for the Index). A lower relative average weighting in this relatively strong sector (6% versus 14% for the Index) took away from performance. Individual companies contributing to performance included two Consumer Discretionary companies and two Information Technology companies.

The Fund held approximately 14% of its assets in foreign companies (including American Depositary Receipts) at August 31, 2009. As a whole, these companies outperformed the domestic companies within the portfolio.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Fundamental Value Class 1 (began 10/15/05)		–18.72	%	—	—	–2.50	%		–18.72	%	—	—	–9.35	%
Fundamental Value Class NAV (began 10/15/05)		–18.75	%	—	—	–2.47	%		–18.75	%	—	—	–9.24	%
S&P 500 Index2,3,4		–18.25	%	—	—	–1.72	%		–18.25	%	—	—	–6.52	%

 

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  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.85% and Class NAV – 0.80%.

19

Global Agribusiness Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Jennifer Doroty, Norman Ali and Robert Lutzko

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital appreciation by investing in equities and equity-related securities of companies involved in the agribusiness sector.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	55.76
Basic Materials	43.72
Industrial	0.52

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the period from the Fund’s inception on January 2, 2009 to August 31, 2009, the Global Agribusiness Class A returned +14.52%, compared to the +22.54% return of the MSCI World Agricultural & Food Chain Sector Capped Custom Index.

Market Environment  4 The year 2009 has been a year of extreme volatility. Global economic concerns caused markets to tumble during the first two months of the year. On March 9, global indices bottomed to lows not seen in years and the fund was down nearly 11% year-to-date. The following day, the fund gained nearly 5.3%. This illustrates the unprecedented market volatility. In the months ahead, markets rallied and delivered spectacular returns not seen in decades. Investors’ confidence increased on expectations that global economic conditions were improving, and as a result risk appetite increased. Emerging markets, small-cap cyclical and Financial stocks were among the largest beneficiaries.

It has been a volatile year for the fund, particularly due to extreme volatility in the fertilizer industry which represents approximately one-third of the portfolio. The fund’s strong performance during the first few months of the year was led by the fertilizer industry. The fund was trading in line with its industry index. Fertilizer, in particular potash-based fertilizer stocks, collapsed in May and June, tumbling by more than 30% as the global recession diminished potash pricing and demand. The fund lagged its benchmark return mainly because of an overweight position in the fertilizer industry and underweight position in Consumer Staples.

We expect volatility to remain high in the near-term. In the fertilizer sector, we believe stocks will gradually improve. Even though the recent months have been challenging for the fertilizer sector and fertilizer prices have declined materially, they are still near record levels. In the months ahead, our outlook for fertilizers is positive as we expect demand to improve, fertilizer pricing to stabilize, and commodity prices to appreciate. Our outlook for the Consumer Staples sector is increasingly positive, given improving economic conditions. We believe this sector will continue to gradually strengthen and appreciate. Our principal objective is for long-term capital appreciation and growth. We are maintaining our disciplined investment approach and continue to invest in stocks and sectors with superior quantitative rankings and strong fundamentals.

PERFORMANCE TABLE2,6	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Global Agribusiness Class A (began 1/2/09)		—	—	—	—		—	—	—	14.52	%
Global Agribusiness Class I (began 1/2/09)		—	—	—	—		—	—	—	14.84	%
MSCI World Agriculture & Food Chain Sector Capped Custom Index3,4,5		—	—	—	—		—	—	—	22.54	%

 

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

2  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  MSCI World Agriculture & Food Chain Sector Capped Custom Index is an equity-based index designed to measure the performance of the various components of the agriculture and food industries — from production through to distribution. The sector capped weighting scheme applies one-third of the index weight at each Quarterly Index Review to both the Agricultural Products and the Fertilizers & Agricultural Chemicals Sub-Industries. The remaining third is split between the Food Distributors and Packaged Foods & Meats Sub-Industries.

5  It is not possible to invest directly in an index.

6  Since inception, a portion of the Global Agribusiness Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 until at least December 31, 2009. For Class A, the net expense is 1.45%. Had the fee waivers and expense limitations not been in place, the gross expense would be 3.66%.

20

Global Bond Fund
Subadviser: Pacific Investment Management Company LLC
Portfolio Manager: Scott Mather

INVESTMENT OBJECTIVE & POLICIES  4 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 (including related options) with respect to such securities, and options on such securities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	30.31
Government	26.07
Mortgage Securities	12.59
Federal National Mortgage Association	8.50
Government National Mortgage Association	6.50
Asset Backed Securities	2.93
Communications	1.67
Consumer, Non-cyclical	1.31
U.S. Treasury Notes	0.85
Industrial	0.84

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Global Bond Class NAV returned +6.14%, compared to the +10.39% return of the JP Morgan Global Government Bond Unhedged Index.

Market Environment  4 Early in the period, most fixed income securities lost ground, as the most severe credit crisis since the 1930s rocked global markets with the collapse and deep troubles of large financial institutions. Massive deleveraging produced an upheaval in the U.S. financial system and an unprecedented level of intervention by the Federal Reserve and the U.S. Treasury took place. Through the end of 2008, interest rates fell worldwide and yield curves in the U.S., Europe and the U.K. steepened, as investors fled to the safety of government bonds, particularly shorter maturities.

During 2009, interest rates rose and capital flowed back toward riskier assets. Government policy initiatives helped restore a measure of stability to financial markets after the extreme stress and volatility of 2008. Higher U.S. Treasury yields were a drag on economic recovery, as they muted the impact of narrower yield and credit premiums for borrowers, especially in the home mortgage market. While some of the weakening in U.S. Treasury valuations could be explained by a reversal of 2008’s flight to liquidity and quality, other factors were in play as well. Investors worried that the massive new issuance of U.S. Treasuries looming on the horizon would overwhelm demand. Another concern was that the Fed’s injection of liquidity would eventually fuel inflation once the economy started to recover.

Developed global bonds posted weak returns during the first half and strong returns during the second half of the fiscal year. Global yield curves steepened sharply as short-dated government bonds outperformed in a flight to quality. U.S. duration positioning detracted from performance overall as U.S. yields fell in the first half and rose in the second half. However, duration positioning in the U.K. and Euroland added to returns over the year as yields fell in both regions. An allocation to mortgages was positive for returns as these bonds outperformed U.S. Treasuries. Exposure to investment grade corporates added slightly to returns as the sector outperformed U.S. Treasuries over the year. However, an emphasis on high-grade financials more than offset this positive impact as financial names underperformed U.S. Treasuries despite their rebound in 2009.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Global Bond Class 1 (began 10/15/05)		6.02	%	—	—	5.04	%		6.02	%	—	—	21.01	%
Global Bond Class NAV (began 10/15/05)		6.14	%	—	—	5.12	%		6.14	%	—	—	21.38	%
JP Morgan Global Government Bond Unhedged Index2,3,4		10.39	%	—	—	7.14	%		10.39	%	—	—	31.02	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  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.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.88% and Class NAV – 0.83%.

21

Global Infrastructure Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Jennifer Doroty, Norman Ali and Robert Lutzko

INVESTMENT OBJECTIVE & POLICIES  4 To seek long–term capital appreciation by investing in equities and equity-related securities of companies involved in the infrastructure sector.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications	33.80
Utilities	31.45
Energy	16.99
Consumer, Non-cyclical	10.36
Industrial	6.01
Consumer, Cyclical	1.01
Financial	0.38

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the period from the Fund’s inception on January 2, 2009 to August 31, 2009, the Global Infrastructure Class A returned +3.85%, compared to the +6.26% return of the MSCI World Infrastructure Sector Capped Custom Index.

Market Environment  4 Concerns over the global macroeconomic environment hurt equity markets in the first two months of 2009. By mid-March, global indices were off 50% from their recent peaks. In the months ahead, markets rallied and delivered spectacular returns not seen in decades, triggered by better-than-expected economic and company-specific results. A sharp market rally was justified, given the extreme pessimistic outlook that drove the sell-off up until mid-March. Investor confidence increased on expectations that global economic conditions were improving, encouraged by aggressive government stimulus initiatives. As a result, risk appetite increased. Within the infrastructure segment, the main beneficiaries were companies in the construction and engineering industry.

The fund’s performance was hurt by depreciation of the U.S. Dollar relative to other currencies. Also, the sharp sell-off in March was due to the poor prospects of the Telecommunication Services and Industrials sectors, given the weak global economic outlook at the time. In four of the six months following, the fund outperformed the benchmark, consistently narrowing the performance gap. In particular, strong stock selection in the Industrials and Telecommunication sectors helped to boost performance. However, the gain was offset by our underweight position in the Energy sector. We continue to focus on companies that have high quantitative rankings that we believe to be of higher quality with strong fundamentals.

We expect an improvement in economic conditions through 2009 and into 2010 as businesses start to see the effects of aggressive government initiatives in the U.S. and around the world. We are seeing better-than-expected economic and company-specific results in recent months and we are cautiously optimistic that the worst for the economy and perhaps equity markets is behind us. We expect near-term market volatility given the magnitude and speed by which this rally has manifested itself, but we remain positive that as the fiscal stimulus committed by governments starts to hit companies’ order books, higher-quality companies will particularly benefit. As such, we are maintaining our disciplined investment approach and continue looking to invest in stocks and sectors with superior quantitative rankings and strong fundamentals.

PERFORMANCE TABLE2,6	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Global Infrastructure Fund Class A (began 1/2/09)		—	—	—	—		—	—	—	3.85	%
Global Infrastructure Fund Class I (began 1/2/09)		—	—	—	—		—	—	—	4.16	%
MSCI World Infrastructure Sector Capped Custom Index3,4,5		—	—	—	—		—	—	—	6.26	%

 

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

2  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

3  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

4  MSCI World Infrastructure Sector Capped Custom Index is a free float-adjusted market capitalization-weighted index comprised of listed infrastructure companies based on the Global Industry Classification System (GICS®). The capped weighting is designed to reduce excessive concentration in large sectors, without over-inflating a small sector.

5  It is not possible to invest directly in an index.

6  Since inception, a portion of the Global Infrastructure Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 until at least December 31, 2009. For Class A, the net expense is 1.45%. Had the fee waivers and expense limitations not been in place, the gross expense would be 3.66%.

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  4 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	89.41
Consumer, Non-cyclical	3.75
Consumer, Cyclical	0.70
Diversified	0.05

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Global Real Estate Class NAV returned–20.28%, compared to the –35.82% return of the EPRA NAREIT Global Unhedged U.S. Index.

Market Environment  4 Following a horrific first few months of the reporting period, global property stocks staged a rally during December that would look quite solid in a normal market. However, despite the rally, global property securities remained at record negative returns. Asia’s relatively attractive quarterly return was led by government intervention in the region attempting to stimulate real estate markets, but this region also was very negative. This negative performance continued in the start of 2009, as the outlook for fundamentals was universally negative, with both occupancy and market rents expected to drop for all regions and property types. Combined with stressed balance sheets in several regions, this made for a feast among short sellers.

Relief finally came as the United States led the way as investors applauded institutionally driven equity recapitalizations at modest discounts. Europe also responded well to rights offerings in the UK, which, while more dilutive, drove strong performance in the region. Asia performed well, based on positive news regarding stimulus measures, particularly those in China. This strong performance tailed off, but returned at the end of the period, as global economic data continued to surprise on the upside and credit markets continued to show sequential improvement. The U.S. also finished strong. The debt capital markets were the main catalyst behind the positive returns in the U.S., as all parts of the debt spectrum witnessed continued spread contraction.

Overall, the fund’s stock selection had a positive impact on performance. Stock selection was strong in Australia and Europe, but it detracted somewhat from performance in Asia. In the Americas, stock selection had a relatively neutral effect on performance. Overall, regional selection aided performance slightly. Over the period, our allocations to Asia and Australia boosted performance. This was almost offset by negative results from allocations to Europe and the Americas.

The fund used currency forwards to hedge against anticipated currency exchange rates. Over this period, a hedged portfolio performed slightly better than an unhedged portfolio with similar risk.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Global Real Estate Class NAV (began 4/28/06)		–20.28	%	—	—	–9.08	%		–20.28	%	—	—	–27.25	%
EPRA NAREIT Global Unhedged U.S. Index2,3,4		–35.82	%	—	—	–14.11	%		–35.82	%	—	—	–39.80	%

 

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  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).

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.07%.

23

Global Timber Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Jennifer Doroty, Norman Ali and Robert Lutzko

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital appreciation by investing in equities and equity-related securities of companies involved in the timber sector.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Basic Materials	86.35
Industrial	10.02
Consumer, Non-cyclical	3.63

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the period from the Fund’s inception on January 2, 2009 to August 31, 2009, the Global Timber Class A returned +13.98%, compared to the +19.09% return of the S&P Global Timber & Forestry Index.

Market Environment  4 Concerns over the global macroeconomic environment hurt equity markets in the first two months of 2009. By mid-March, global indices were off 50% from their recent peaks. In the months ahead, markets rallied and delivered spectacular returns not seen in decades, triggered by better-than-expected economic and company-specific results. A sharp market rally was justified, given the extreme pessimistic outlook that drove the sell-off up until mid-March. Investor confidence increased on expectations that global economic conditions were improving, encouraged by aggressive government stimulus initiatives. As a result, risk appetite increased. Within the infrastructure segment, the main beneficiaries were companies in the construction and engineering industry.

It has been a volatile year for the fund. Weakness in the U.S. housing sector contributed to low demand for forest products, but it was offset by strong demand in paper packaging products. The fund saw an extreme sell-off in the forest products and paper products in the first few months of the year on an extremely pessimistic outlook. Since then, there has been strong demand for paper products and we have seen signs of recovery in the housing market. The fund benefited from an underweight position in forest products and overweight position in paper products. Due to the sharp sell-off in January and February, the stock weighed on the fund’s performance despite 150% recovery in the stock from its March low. The fund consistently narrowed the performance gap throughout the year, outperforming the benchmark in five of eight months.

Given its cyclical nature, we are not surprised at the strong performance for the sector following the March low, yet we remain cognizant of the current global economic environment. However, we maintain a positive outlook on early cyclical sectors in the near-term, while consistently monitoring housing sectors for a robust sign of recovery. Therefore, we expect to remain underweight in forest products given a weak U.S. housing sector while holding an overweight position in the early cyclicals, including paper packaging and other paper products. We remain disciplined in our investment process and continue to invest in companies with excellent quantitative rankings and strong fundamentals with exceptional upward potential.

PERFORMANCE TABLE2,6	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Global Timber Fund Class A (began 1/2/09)		—	—	—	—		—	—	—	13.98	%
Global Timber Fund Class I (began 1/2/09)		—	—	—	—		—	—	—	14.31	%
S&P Global Timber & Forestry Index2,3,4		—	—	—	—		—	—	—	19.09	%

 

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

2  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

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 Global Timber & Forestry Index is comprised of 25 of the largest publicly traded companies engaged in the ownership, management or the upstream supply chain of forests and timberlands.

5  It is not possible to invest directly in an index.

6  Since inception, a portion of the Global Timber Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 until at least December 31, 2009. For Class A, the net expense is 1.45%. Had the fee waivers and expense limitations not been in place, the gross expense would be 3.66%.

24

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  4 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	47.93
Communications	27.60
Basic Materials	6.45
Financial	6.14
Industrial	5.29
Utilities	3.03
Mortgage Securities	1.32
Consumer, Non-cyclical	0.54
Energy	0.53
Asset Backed Securities	0.51

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the High Income Class NAV returned –5.78%, compared to the +6.43% return of the Merrill Lynch U.S. High Yield Master II Constrained Index.

Market Environment  4 The last 12 months covered a remarkable period that included some of the worst months in high-yield market history in late 2008 as well as some of the very best in 2009. The late 2008 struggles came at the height of the economic and financial crises and sent the spread (yield over Treasuries) on the high-yield market to an all-time high above 2000 basis points (or 20 percentage points). But those record-high yields and optimism over government measures to support the credit markets and economy triggered massive cash inflows, making for improved market liquidity, and the re-opening of the new issue and refinancing windows for high-yield issuers. On the strength of that demand, the spread over Treasuries ended the period at 912 basis points.

The fund had disappointing relative and absolute results, in part because of poor performance from a number of our airline holdings, which suffered from a decline in travel volumes in late 2008 and so far in 2009. The sector was also hurt by the effects of fuel hedges they were forced to put in place after the spike in crude oil prices in 2008. Without the effect of these hedges, the industry operated on a positive free cash flow basis despite the severe decline in revenue. In that environment, several of the fund’s airline holdings detracted from performance. Other notable detractors were positions that defaulted at the height of the financial crisis, including a broadcasting and a casino holding.

The fund enjoyed strong positive contributions from a number of large, long-held positions, including one where we worked with the company and a strategic investor to help restructure some of their near-term debt, alleviating the company’s short-term re-financing issues that occurred at the height of the credit crisis. Another key contributor was a large stake in a cable operator, which delivered solid business results and announced a proposal to restructure into a less-levered balance sheet. The portfolio also benefited from stakes in several auto parts suppliers.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
High Income Class NAV (began 4/28/06)		–5.78	%	—	—	–2.44	%		–5.78	%	—	—	–7.92	%
Merrill Lynch U.S. High Yield Master II Constrained Index2,3,4		6.43	%	—	—	4.10	%		6.43	%	—	—	14.38	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.72%.

25

High Yield Fund
Subadviser: Western Asset Management Company
Portfolio Manager: S. Kenneth Leech, Steven A. Walsh, Mike Buchanan, Keith J. Gardner

INVESTMENT OBJECTIVE & POLICIES  4 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 or participations and convertible securities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications	15.17
Financial	14.64
Consumer, Cyclical	14.19
Energy	13.14
Consumer, Non-cyclical	11.73
Basic Materials	9.56
Industrial	6.76
Utilities	5.92
Government	4.07
Technology	1.15

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the High Yield Class NAV returned +3.62%, compared to the +5.31% return of the Citigroup High Yield Index.

Market Environment  4 The period was defined by extreme volatility and was a tale of two halves. For the first six months, the Index tumbled 22.75% before soaring 36.33% in the second six months. The beginning of the period was marked by the failure of Lehman Brothers and a massive capital infusion at AIG from the U.S. government to avoid a potential collapse of the global financial system. During this period, liquidity was difficult to come by and extremely expensive.

Though the entire asset class suffered steep losses, it was those credits perceived to be most levered to economic activity that performed the worst. For example, BB-rated securities, generally regarded as higher quality, returned –9.99 from last September through February 2009, while CCC-rated issues, generally regarded as lower quality, returned –37.12% over the same period. Government policy actions were implemented in the aftermath of the financial crisis, designed to help stabilize the economy and financial institutions. These actions began to take root during the first half of 2009. Demand for risk and measures of liquidity increased as economic indicators provided hope that the worst of the crisis was over. In May, the U.S. government released the anxiously anticipated results of the bank stress tests they had conducted on the 19 largest U.S. financial institutions. The findings were benign and provided relief to investors that the doomsday predictions made by some in January and February that banks were generally insolvent was erroneous. The second-quarter earnings season provided further confirmation that the markets had stabilized as results were generally better than expected.

Quality positioning helped relative performance due to the fund’s overweight to lower-rated high yield securities, as CCC-rated issues in general returned 21.70%. Issue selection had a neutral impact on relative performance as five of the top 10 portfolio overweights outperformed and the other five underperformed. The top 10 overweights made up 15% of the portfolio. Sector allocation hurt relative performance due in large part to an underweight to Financials, which returned 41.14%.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
High Yield Class 1 (began 10/15/05)		3.66	%	—	—	3.49	%		3.66	%	—	—	14.22	%
High Yield Class NAV (began 10/15/05)		3.62	%	—	—	3.53	%		3.62	%	—	—	14.41	%
Citigroup High Yield Index2,3,4		5.31	%	—	—	4.12	%		5.31	%	—	—	17.15	%

 

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  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.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.75% and Class NAV – 0.70%.

26

Index 500 Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES  4 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 as a group 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	21.16
Financial	14.85
Technology	12.41
Energy	11.53
Communications	10.04
Industrial	9.64
Consumer, Cyclical	8.59
Basic Materials	3.58
Utilities	3.09
Diversified	0.05

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, Index 500 Class NAV returned –18.66%, compared to the –18.25% return of the S&P 500 Index.

Market Environment  4 The past year has witnessed major historical events among U.S. financial institutions, including the bankruptcies of Lehman Brothers and Washington Mutual, and the government takeover of AIG, Fannie Mae and Freddie Mac. Throughout the year, we also saw a major reduction in credit access for corporations, small businesses and individuals.

During the first quarter of 2009, Barack Obama became president of the United States. In January, the House approved his $819 billion economic recovery plan. Economists believe that President Obama’s stimulus plan and Federal Reserve measures will help the U.S. economy by late 2009 to early 2010. By the end of the second quarter of 2009, unemployment in the U.S. rose to a 26-year high. The jobless rate increased to 9.7% at the end of August. The bankruptcies of such large companies as General Motors and Chrysler contributed significantly to these recent job losses. The Conference Board’s Consumer Confidence Index remained low through the year, reaching 54 in August 2009. The lowest confidence level was in February 2009 when it dipped to 25.

During the past 12 months, Information Technology and Health Care were the best performing sectors, returning –1.9% and –10.8%, respectively. Financials and Industrials were the worst performers, returning –31.7% and –24.8%, respectively.

The job benefits of the federal stimulus program have yet to be felt in the real economy. Until then, continued market volatility is expected in the upcoming quarters.

The Index 500 Fund is designed to track the performance of the S&P 500 Index. Any difference in performance is attributable to trading costs and other expenses not incurred by the index.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Index 500 Class NAV (began 10/27/06)		–18.66	%	—	—	–8.41	%		–18.66	%	—	—	–22.12	%
S&P 500 Index2,3,4		–18.25	%	—	—	–8.22	%		–18.25	%	—	—	–21.66	%

 

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  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.49%.

27

International Equity Index Fund
Subadviser: SSgA Funds Management, Inc.
Portfolio Managers: Karl Schneider and Thomas Coleman

INVESTMENT OBJECTIVE & POLICIES  4 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	25.03
Consumer, Non-cyclical	14.17
Industrial	10.42
Energy	9.98
Basic Materials	9.87
Communications	8.71
Consumer, Cyclical	7.52
Utilities	4.91
Technology	3.66
Diversified	1.05

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the International Equity Index Class NAV returned –14.15%, compared to the –14.41% return of the MSCI AC World Ex US Net Index.

Market Environment  4 After losing nearly half of their value from August 2008 to early March 2009, international equity markets rebounded significantly from their March lows. The subprime and credit crisis that first came to light in 2007 continued to punish financial stocks and other interrelated sectors, though many within the financial sector also enjoyed the significant rebound since March. Risk appetites seemed to hesitate a bit when the second half of 2009 got underway, as a disappointing U.S. employment release left investors wondering whether the strong equity rallies of the second quarter could be sustained. With deflation fears ebbing further, volatility measures tumbled anew, credit spreads embarked on another leg lower, and resurgent financial shares kicked off a remarkably persistent advance in global equities that carried through to the end of the summer.

All developed market countries posted negative returns over the last year, as did all emerging market countries. Emerging markets as a group once again outperformed developed markets –10% versus –15% for the 12 months ending in August. On a regional basis, the Asia-Pacific region was the leader, with a return of –7% versus –18% for Europe and –14% for Latin America. All 10 sectors had negative returns for the period. Energy (–24%) and Industrials (–22%) led the downward charge. Consumer Staples (–8%) and Health Care (–11%) were the best performing sectors.

By utilizing a passive, replication investment style, the fund owns largely the same stocks and sectors in approximately the same weights as the MSCI ACWI ex US Index. As such, we expect the fund to have returns similar to those of the underlying benchmark. As of August 31, 2009, the Index’s four largest sectors were Financials (26.5%), Materials (10.8%), Energy (10.7%), and Industrials (10.0%).

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
International Equity Index Class NAV (began 10/29/05)		–14.15	%	—	—	2.86	%		–14.15	%	—	—	11.44	%
MSCI AC World Ex US Net Index2,3,4		–14.41	%	—	—	3.58	%		–14.41	%	—	—	14.46	%

 

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 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 Net 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.

5  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.56%.

28

International Opportunities Fund
Subadviser: Marsico Capital Management, LLC
Portfolio Manager: James G. Gendelman

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital by investing at least 65% of its total 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
Financial	27.08
Industrial	15.68
Consumer, Non-cyclical	11.41
Energy	9.34
Consumer, Cyclical	9.14
Communications	6.93
Technology	6.56
Basic Materials	5.99
Diversified	0.45

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the International Opportunities Class NAV returned –20.06%, compared to the –14.47% return of the MSCI EAFE^® Gross Index.

Market Environment  4 Equity performance in developed markets was weak for the 12-month period ended August 31, 2009, but still managed to outperform the U.S. equity market (using the S&P 500 Index as a reference). None of the 10 sectors in the MSCI EAFE Index had gains in the period and six sectors had losses of 10% or more. The weakest areas were Materials, Information Technology, Financials, Utilities, Industrials and Energy. Consumer Staples and Telecommunication Services, while still posting losses, emerged as the strongest areas.

Stock selection and an emphasis in the weak-performing Industrials sector were the largest negative performance factors. Mobile telecommunication services providers in Latin America and South Africa hurt performance, as did a Canada-based wireless telecommunications and cable television service provider. Although active currency management is not a central facet of the fund’s investment process, currency fluctuations may at times affect the fund’s performance. For the period, currency fluctuations had a material, negative effect on performance results relative to the EAFE Index. There were a few bright spots to the fund’s performance. In particular, stock selection was strong in the semiconductors & semiconductor equipment, banks, and food beverage & tobacco industry groups, and an emphasis in the relatively strong-performing pharmaceuticals biotechnology & life sciences industry helped results.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
International Opportunities Class 1 (began 10/15/05)		–20.11	%	—	—	1.80	%		–20.11	%	—	—	7.15	%
International Opportunities Class NAV (began 10/15/05)		–20.06	%	—	—	1.85	%		–20.06	%	—	—	7.38	%
MSCI EAFE Gross Index3,4,5		–14.47	%	—	—	1.19	%		–14.47	%	—	—	4.75	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  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 2007, the MSCI EAFE Gross Index consisted of 21 developed market country indices.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 1.04% and Class NAV – 0.99%.

29

International Small Cap Fund
Subadviser: Franklin Templeton Investment Corp.
Portfolio Manager: Bradley Radin

INVESTMENT OBJECTIVE & POLICIES  4 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 $2 billion or less.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Cyclical	26.36
Industrial	23.13
Financial	17.69
Consumer, Non-cyclical	14.25
Basic Materials	4.44
Technology	3.70
Communications	2.91
Energy	1.94
Diversified	1.31
Utilities	1.04

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the International Small Cap Class NAV returned –9.94%, compared to the –5.96% return of the S&P/Citigroup Global ex U.S. <$2 Billion Index.

Market Environment  4 Stock selection in the Consumer Discretionary and Financials sectors detracted from the fund’s performance relative to the benchmark index during the period, as did an underweighting and stock selection in the Materials sector.

On the positive side, stock selection in the Health Care and Industrials sectors contributed to relative performance, as did an underweighting and stock selection in the Energy sector. One of the Fund’s top contributors was a North American pharmaceutical company focused on a drug delivery technology platform used to develop better formulations of established drugs. We believe the company has strong research and development and a proven ability to control costs.

During the year, the fund was significantly overweighted in the Consumer Discretionary sector and, to a lesser extent, Health Care. Meanwhile, it was relatively underweighted in the Financials, Materials and Consumer Staples sectors. These weightings were a result of our bottom-up stock selection process and were indicative of where our analysts were finding the value opportunities they feel are most attractive.

At period-end, equity markets may remain volatile given lingering economic uncertainties worldwide. Regardless of the economic outlook, we base our stock selection on company fundamentals. We are continually searching for stocks selling at a discount to our assessment of their intrinsic worth. If anything, volatility in global stock markets may enable us to purchase investments in what we believe to be exceptional companies selling at undervalued prices.

The first half of the 12-month period was marked by the bursting of the credit and commodities bubbles, the onset of global recession and the precipitous decline of equity markets. The second half featured a sharp market recovery amid renewed optimism. Generally, market sectors and regions traditionally considered defensive most effectively limited losses during the first half of the year, although declines were nearly universal. In the second half of the year, beaten-down cyclical sectors and more volatile emerging markets regions led performance as global equities staged a dramatic recovery.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
International Small Cap Class 1 (began 10/15/05)		–9.88	%	—	—	1.38	%		–9.88	%	—	—	5.47	%
International Small Cap Class NAV (began 10/15/05)		–9.94	%	—	—	1.45	%		–9.94	%	—	—	5.74	%
S&P/Citigroup Global ex U.S. <$2 Billion Index2,3,4		–5.96	%	—	—	4.39	%		–5.96	%	—	—	18.16	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  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.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 1.18% and Class NAV – 1.13%.

30

International Small Company Fund
Subadviser: Dimensional Fund Advisors LP
Portfolio Manager: Karen E. Umland

INVESTMENT OBJECTIVE & POLICIES  4 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	24.18
Consumer, Cyclical	15.58
Consumer, Non-cyclical	15.44
Financial	13.26
Basic Materials	10.12
Communications	6.24
Energy	5.78
Technology	4.95
Diversified	1.25
Utilities	1.03

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the International Small Company Class NAV returned –12.23%, compared to the –8.51% return of the MSCI EAFE Small Cap Gross Index.

Market Environment  4 The 12 months from September 2008 to August 2009 were characterized by two completely different periods. From September 2008 to early March 2009, global equity markets fell by about 50%, as the global financial crisis and the slowdown in many of the world’s leading economies became more severe. Then, from early March to August 2009, equity markets around the world rebounded sharply, as fears of a systemic collapse of the world economy abated and financial markets began to show some signs of stabilization. Throughout this period, volatility and divergent performance in developed markets was at extraordinarily high levels, especially in late 2008 and the early part of 2009. As a result, small differences in portfolio weights between different strategies or between strategies and benchmarks often resulted in large differences in performance.

The fund’s exposure to Canada and other differences in allocation across regions had a large negative impact on relative performance. On the other hand, differences in composition within regions, especially in Japan, had a slight positive impact on relative performance.

The portfolio’s overweight to the smallest stocks by market capitalization and other differences in allocation across the market capitalization segments aided relative performance. However, composition differences within the market capitalization segments had a negative and stronger effect on the fund’s relative performance.

Allocation across sectors slightly dampened relative performance. Composition differences within sectors, especially in Financials, Materials and Consumer Discretionary strongly detracted from fund performance. Differences in allocation to industry sectors are a byproduct of the fund’s investment process, rather than specific sector bets.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
International Small Company Class NAV (began 4/28/06)		–12.23	%	—	—	–5.72	%		–12.23	%	—	—	–17.87	%
MSCI EAFE Small Cap Gross Index2,3,4		–8.51	%	—	—	–6.63	%		–8.51	%	—	—	–20.48	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  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 and targets 40% of the eligible small cap universe in each industry group of each country represented by the MSCI EAFE Index. As of June 2007 the MSCI EAFE Index consisted of 21 developed market country indices.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.10%.

31

International Value Fund
Subadviser: Templeton Investment Counsel, LLC
Portfolio Managers: Tucker Scott, Cindy Sweeting, and Antonio Docal

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital. The Fund invests at least 80% 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	20.55
Consumer, Non-cyclical	17.41
Financial	16.60
Technology	9.90
Consumer, Cyclical	9.32
Energy	8.30
Industrial	7.90
Utilities	2.22
Diversified	1.08

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the International Value Class NAV returned –9.85%, compared to the –14.47% return of the MSCI EAFE Gross Index.

Market Environment  4 During the fiscal year, the Financials sector was a significant detractor from fund returns relative to the benchmark index due to stock selection and an underweighted position, and this group contained several of the portfolio’s worst-performing stocks. More generally, our cautious exposure to the sector helped limit losses during the bear market, but hindered relative performance as the sector rebounded strongly over the spring and summer. Materials, like Financials, is a highly cyclical and seemingly overvalued sector in which the fund has long been underweighted. Our underweighting in Materials helped limit losses when markets collapsed through March 2009, but also limited the upside as markets recovered. Within the sector, our concentration in deep-value paper companies pressured performance, as the pulp industry remained cyclically depressed.

European and Asian stocks delivered the best returns relative to the benchmark index. In particular, stock selection in the U.K. and positions in non-index countries Taiwan and South Korea were major contributors. By sector, stock selection in the more cyclical Information Technology, Consumer Discretionary and Industrials sectors contributed to the portfolio’s relative performance as the economy and markets rebounded in the period’s latter half. The Fund’s Information Technology stocks delivered positive absolute returns overall compared with the index’s roughly 20% sector decline, and were the portfolio’s top relative performers.

The Fund’s overweighted Consumer Discretionary stocks also had strong gains and outperformed the benchmark, led by holdings in the retailing industry. The Fund’s Industrials stocks also performed better than the Index’s sector return as market optimism emerged with nascent signs of economic recovery.

The Fund did not hold any derivative securities during the period under review.

The first half of the 12-month period was marked by the bursting of the credit and commodities bubbles, the onset of global recession and the precipitous decline of equity markets. The second half featured a sharp market recovery amid renewed optimism. Generally, market sectors and regions traditionally considered defensive most effectively limited losses during the first half of the year, although declines were nearly universal. In the second half of the year, beaten-down cyclical sectors and more volatile emerging markets regions led performance as global equities staged a dramatic recovery.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
International Value Class 1 (began 10/15/05)		–9.96	%	—	—	2.00	%		–9.96	%	—	—	7.97	%
International Value Class NAV (began 10/15/05)		–9.85	%	—	—	2.07	%		–9.85	%	—	—	8.25	%
MSCI EAFE Gross Index2,4,5		–14.47	%	—	—	1.19	%		–14.47	%	—	—	4.75	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Since inception, a portion of the International Value Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 2007, the MSCI EAFE Index consisted of 21 developed market country indices.

5  It is not possible to invest directly in an index.

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 until at least December 31, 2009. The net expenses are as follows: Class 1 – 0.98% and Class NAV – 0.93%. Had the fee waivers and expense limitations not been in place, the gross expenses would be as follows: Class 1 – 0.99% and Class NAV – 0.94%.

32

Investment Quality Bond Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Thomas L. Pappas, CFA, Christopher L. Gootkind, CFA and Christopher A. Jones, CFA

INVESTMENT OBJECTIVE & POLICIES  4 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 tend to focus on 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
U.S. Treasury Bonds	24.60
Financial	19.02
Communications	8.49
Mortgage Securities	8.37
Consumer, Non-cyclical	7.04
Utilities	5.88
Federal National Mortgage Association	3.43
Energy	2.68
Government	2.61
U.S. Treasury Notes	1.69

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Investment Quality Bond Class NAV returned +8.23%, compared to the +8.28% return of the 50% Barclays Capital Government Bond Index/50% Barclays Capital Credit Bond Index.

Market Environment  4 In the latter half of 2008, Treasury yields reached record lows and equity markets plummeted globally as financial market turmoil worsened and a U.S. recession was confirmed. Following the bankruptcy of Lehman Brothers, credit markets froze and risk aversion dominated markets. Negative economic news was pervasive with increasing unemployment, declining consumer confidence, falling equity markets, and further deterioration in the housing market. Unprecedented government intervention was initiated, including actions to support the short-term funding markets, banking system, auto industry, and the reduction of consumer borrowing costs.

Signs of market and global economic stabilization materialized in the first half of 2009. Positive sentiment returned with a rally in global equities, better-than-expected earnings and economic readings, and improved liquidity conditions. Importantly, financial institutions regained access to unsecured credit and equity markets and raised capital. Credit and securitized spreads tightened in the latter half of the period as government intervention reduced the risk of a severe and prolonged recession and market liquidity conditions improved.

Contributing to relative results were the fund’s allocations to agency mortgages, commercial mortgage-backed securities (CMBS), high yield corporate bonds, and non-dollar rate positions. Agency mortgages posted positive excess returns following the announcement, initiation, and expansion of the Federal Reserve’s agency MBS purchase program. CMBS rebounded in mid-2009 following the expansion of the Term Asset-Backed Loan Facility (TALF) and announcement of the Public Private Investment Program (PPIP), both of which target the CMBS market. As government intervention increased and the risk of a depression dissipated, high yield bonds rebounded and outperformed. The fund’s non-dollar rate positions in the UK and Germany performed well in the first quarter. Lastly, the portfolio benefited from an underweight to the investment grade corporate bond sector during the credit crisis in 2008.

Detracting from the fund’s performance was an allocation to Treasury Inflation-Protected Securities (TIPS) and security selection within the investment grade corporate bond allocation. TIPS underperformed late in 2008 as the recession intensified and the market revised its expectations materially downwards for growth and inflation. The fund was hurt by corporate bond selection, in particular an overweight to corporate debt issued by Financials, which were at the epicenter of the credit crunch.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Investment Quality Bond Class 1 (began 10/15/05)		8.16	%	—	—	5.09	%		8.16	%	—	—	21.25	%
Investment Quality Bond Class NAV (began 10/15/05)		8.23	%	—	—	5.15	%		8.23	%	—	—	21.51	%
50% Barclays Capital Government Bond Index/ 50% Barclays Capital Credit Bond Index2,3,4		8.28	%	—	—	5.40	%		8.28	%	—	—	22.88	%

 

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  Barclays Capital Government Bond Index and Barclays Capital Credit Bond Index Blend-A blended index is used combining 50% of the Barclays Capital 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% Barclays Capital 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.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.76% and Class NAV – 0.71%.

33

Large Cap Fund
Subadviser: UBS Global Asset Management (Americas) Inc.
Portfolio Managers: John Leonard, Thomas Cole, Thomas Digenan and Scott Hazen

INVESTMENT OBJECTIVE & POLICIES  4 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	23.16
Technology	15.85
Financial	13.77
Energy	13.73
Industrial	9.96
Communications	7.75
Utilities	5.31
Consumer, Cyclical	5.19
Basic Materials	1.32
Investment Companies	0.49

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Large Cap Class NAV returned –21.65%, compared to the –18.39% return of the Russell 1000 Index.

Market Environment  4 The year began with the market declining precipitously based on a dire economic outlook. The U.S. equity market, as well as other markets around the world, then rallied fast and furiously as the economic news upgraded from terrible to just bad. During this time, portfolio performance has underperformed overall with recent periods of outperformance not yet overcoming poor results early in the fiscal year. The overall underperformance was primarily driven by industry selection while stock selection has continued to help, especially in the most recent months. An overweight to semiconductors and an underweight to materials benefited performance the most from industry selection but were offset by the negative impact of an underweight to technology hardware and overweight to banks.

The biggest challenge facing investors in this environment is becoming overly fixated on the short-term economic updates. There will be relatively positive news in areas such as autos and even housing, where the news could not get much worse. At the same time, unemployment and other pressures on consumers may not abate for some time. The longer-term economic concerns revolve around the transition of consumers from not being bound by gravity to carrying a weight around their necks. As the tail winds of easy credit, rising home prices and lower tax rates reverse and savings rates increase, consumers will probably not feel the resiliency we saw during the early part of this decade before the housing bubble popped.

Currently, the obvious head winds include earnings, which remain under pressure, increasing unemployment, which hurts consumers’ ability/willingness to spend, and economic stimulus, which could have a long-term inflationary impact if not unwound effectively. The economic tail winds include unprecedented government actions to support economic stability, signs that financial stress and volatility have begun to stabilize, strong economic growth from China, and global cash levels at near-record highs.

Attractive price/value opportunities are not limited, nor are they necessarily more likely during strong economic times. As we witnessed earlier in 2009, sometimes the direst economic circumstances give rise to the greatest investment opportunities. While we believe there are still significant economic challenges ahead, and some of the most dramatic mispricings have partially corrected themselves in recent months, we find the current price/value opportunities to be compelling.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Large Cap Class 1 (began 10/15/05)		–21.66	%	—	—	–3.62	%		–21.66	%	—	—	–13.33	%
Large Cap Class NAV (began 10/15/05)		–21.65	%	—	—	–3.58	%		–21.65	%	—	—	–13.17	%
Russell 1000 Index2,3,4		–18.39	%	—	—	–1.61	%		–18.39	%	—	—	–6.11	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Russell 1000 Index is an unmanaged index which measures the performance of the 1,000 largest companies in the Russell 3000 Index.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.80% and Class NAV – 0.75%.

34

Large Cap Value Fund
Subadviser: BlackRock Investment Management, LLC
Portfolio Managers: Robert C. Doll, Jr. and Daniel Hanson

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term growth of capital by investing primarily 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 in the Russell 1000 Value Index.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy	23.76
Consumer, Non-cyclical	23.03
Financial	13.60
Industrial	8.24
Consumer, Cyclical	7.68
Communications	6.52
Utilities	5.87
Technology	5.76
Basic Materials	0.45

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Large Cap Value Class NAV returned –25.90%, compared to the –20.27% return of the Russell 1000 Value Index.

Market Environment  4 Detracting from the fund’s performance relative to the benchmark were underweights and security selection in the Financials and Consumer Staples sectors. Our underweight in Consumer Staples during the year was based on valuations. Though we liked the defensive nature of the sector, valuations were too expensive to merit investment. Our underweight and security selection in Financials strongly benefited performance in the first half of the annual period, through the market’s low in early March. The overall underperformance in the sector — and in the fund overall — came from the period following the market bottom. During this sharp rally, extremely low-quality names significantly outperformed high-quality names. Financial companies were the most significant beneficiaries of the flight from quality. The benchmark’s holdings in the Financials sector were up by more than 120% from March 9 to August 31, 2009, doubling the return of the overall Index within that time frame.

Contributing to performance was security selection in both the Consumer Discretionary and Health Care sectors. In Consumer Discretionary, we focused on discount retailers and other companies positioned to benefit from a trade down in consumer behavior. We have recently taken a portion of this bet off the table as the holdings didn’t significantly participate in the recent rally. Our broad-based holdings in Health Care contributed to results during the year. Adding most notably in the sector were our biotechnology and equipment & supplies holdings.

The Russell 1000 Value Index was down by more than 20% for the one-year period. The benchmark’s holdings in the Industrials and Financials sectors were the worst performers during the period. On the whole, the year can be spliced into two distinct halves, with the first ending in early March and the second going through the fiscal year-end. In the first half, the Index was down by more than 50%. Financials and Materials performed the worst, falling by more than 60%. In the second half, the benchmark was up nearly 60%. Financials and Materials, which lagged earlier in the period, were the top performers, each gaining more than 100%.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Large Cap Value Class 1 (began 10/15/05)		–25.96	%	—	—	–4.52	%		–25.96	%	—	—	–16.42	%
Large Cap Value Class NAV (began 10/15/05)		–25.90	%	—	—	–4.46	%		–25.90	%	—	—	–16.24	%
Russell 1000 Value Index2,3,4		–20.27	%	—	—	–2.63	%		–20.27	%	—	—	–9.82	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

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

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.88% and Class NAV – 0.83%.

35

Mid Cap Index Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES  4 The Fund seeks to approximate 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 as a group 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	17.97
Financial	15.87
Industrial	14.30
Consumer, Cyclical	12.11
Technology	6.94
Energy	5.61
Utilities	5.05
Basic Materials	4.71
Communications	3.78

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Mid Cap Index Class NAV returned –18.69%, compared to the –18.17% return of the S&P MidCap 400 Index.

Market Environment  4 The past year has witnessed major historical events among U.S. financial institutions, including the bankruptcies of Lehman Brothers and Washington Mutual, and the government takeover of AIG, Fannie Mae and Freddie Mac. Throughout the year, we also saw a major reduction in credit access for corporations, small businesses and individuals.

During the first quarter of 2009, Barack Obama became president of the United States. In January, the House approved his $819 billion economic recovery plan. Economists believe that President Obama’s stimulus plan and Federal Reserve measures will help the U.S. economy by late 2009 to early 2010. By the end of the second quarter of 2009, unemployment in the U.S. rose to a 26-year high. The jobless rate increased to 9.7% at the end of August. The bankruptcies of such large companies as General Motors and Chrysler contributed significantly to these recent job losses. The Conference Board’s Consumer Confidence Index remained low through the year, reaching 54 in August 2009. The lowest confidence level was in February 2009 when it dipped to 25.

During the past 12 months, Information Technology and Consumer Staples were the best performing sectors, returning 2.1% and –7.1%, respectively. Energy and Financials were the worst performers, returning –25.1% and –23.4%, respectively.

The job benefits of the federal stimulus program have yet to be felt in the real economy. Until then, continued market volatility is expected in the upcoming quarters.

The Mid Cap Index Fund is designed to track the performance of the S&P MidCap 400 Index. Any difference in performance is attributable to trading costs and other expenses not incurred by the index.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Mid Cap Index Class NAV (began 10/29/05)		–18.69	%	—	—	–0.47	%		–18.69	%	—	—	–1.81	%
S&P MidCap 400 Index2,3,4		–18.17	%	—	—	0.08	%		–18.17	%	—	—	0.31	%

 

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  S&P MidCap 400 Index is an unmanaged index of 400 domestic stocks of medium-sized companies.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.49%.

36

Mid Cap Stock Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Michael T. Carmen, CFA and Mario E. Abularach, CFA

INVESTMENT OBJECTIVE & POLICIES  4 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	25.63
Consumer, Cyclical	24.58
Industrial	13.98
Technology	12.37
Communications	7.42
Financial	5.00
Energy	2.24
Basic Materials	0.38

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Mid Cap Stock Class NAV returned –26.30%, compared to the –20.21% return of the Russell Midcap Growth Index.

Market Environment  4 For the one-year period ended August 31, 2009, U.S. mid cap equities, as measured by the S&P 400 MidCap Index, fell 18.2%. The U.S. economy entered a recession as consumer demand slowed, unemployment rose, and credit markets froze, leading to a significant drop in equity valuations. Equity markets bottomed in March 2009 before rebounding, gaining 50% off of their lows, as many companies beat earnings expectations, driven by significant cost-cutting measures. Some signs of a recovery have begun to emerge as revised second-quarter GDP growth came in better than expected, sales of both new and existing homes increased, and payroll losses slowed.

The Fund’s underperformance during the period was largely the result of stock selection, particularly in the Health Care, Materials and Financials sectors.

Results from sector allocation were positive for the period, as the fund benefited from an underweight to the Energy sector and an overweight to the Consumer Discretionary sector. Performance was also helped by an overweight to the Heath Care sector in select periods of the year.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Mid Cap Stock Class 1 (began 10/15/05)		–26.33	%	—	—	0.19	%		–26.33	%	—	—	0.73	%
Mid Cap Stock Class NAV (began 10/15/05)		–26.30	%	—	—	0.23	%		–26.30	%	—	—	0.88	%
Russell Midcap Growth Index3,4,5		–20.21	%	—	—	–0.86	%		–20.21	%	—	—	–3.29	%

 

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  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.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.93% and Class NAV – 0.88%.

37

Mid Cap Value Equity Fund
Subadviser: RiverSource Investments, LLC
Portfolio Managers: Steve Schroll, Laton Spahr, Warren Spitz and Paul Stocking

INVESTMENT OBJECTIVE & POLICIES  4 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
Financial	17.98
Industrial	14.98
Consumer, Cyclical	11.25
Consumer, Non-cyclical	9.84
Technology	9.29
Energy	7.94
Basic Materials	7.83
Utilities	5.15
Communications	4.08

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Mid Cap Value Equity Class NAV returned –21.56%, compared to the –20.00% return of the Russell Midcap Value Index.

Market Environment  4 The annual period was dominated by a severe and sustained global recession. During the period, all sectors in the benchmark with the exception of Integrated Oils were negative performers, with the Energy sector leading the decline. In March 2009, equity markets began to rally based on several factors: data indicating a deceleration in economic decline; better-than-expected corporate earnings (based on draconian cost-cutting); glimmers of improvement in the housing market; and increasing liquidity in the credit markets. Unemployment increased during the period and remains high, suppressing consumer spending.

The top-contributing sector to relative return during the period was Financial Services, fueled in large part by an overweight in property and casualty insurers. The greatest detractor from portfolio return at the sector level was Autos and Transportation, due in large part to railroad holdings.

While certainly encouraged by the March-through-August equity market rally, we believe that the equity market will likely trade in a range-bound manner for the rest of 2009, with the potential for volatility to spike again, depending on the scope of the U.S. government’s agenda and the clarity of economic data. After the strong rally of the past six months, we believe that the market will need to see better corporate revenues and earnings before achieving a more sustained upward trend. Our longer-term view is more bullish and so we intend to maintain an offensive stance rather than a defensive one. We believe that equity valuations as of August 31 are still relatively attractive from a longer-term perspective and that returns on equity could be quite good.

At the end of August, the fund was biased toward sectors and companies that could benefit from global economic growth. On a sector basis, we are encouraged by spending trends within Technology. Basic Materials and other industrial-related areas of the market appear attractive given the various global government initiatives intended to spur the development of infrastructure.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Mid Cap Value Equity Class NAV (began 4/28/06)		–21.56	%	—	—	–6.45	%		–21.56	%	—	—	–19.99	%
Russell Midcap Value Index2,3,4		–20.00	%	—	—	–6.07	%		–20.00	%	—	—	–18.90	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.97%.

38

Mid Value Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Managers: Ned Norton, Kim DeDominicus and Charles Shriver

INVESTMENT OBJECTIVE & POLICIES  4 The fund seeks long-term capital appreciation by investing, under normal market conditions, in both equity and fixed income securities.    
    

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	22.19
Consumer, Non-cyclical	20.89
Consumer, Cyclical	11.49
Energy	9.16
Communications	8.09
Utilities	8.01
Basic Materials	6.87
Industrial	5.98
Technology	4.80

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the period from the Fund’s inception on January 2, 2009 to August 31, 2009, the Mid Value Class NAV returned +26.10%, compared to the +20.80% return of the Russell Midcap Value Index.

Market Environment  4 Mid-cap value stocks surged recently, resulting in double-digit positive returns for the Russell Midcap Value Index. Through beneficial sector allocation and strong stock selection, the portfolio turned in even higher returns.

After the disastrous market of 2008 and early 2009, stocks have rebounded sharply since March behind investor confidence that the bottom of the global economy was imminent. The recovery has proven uneven, however. Interest rates and commodity prices dropped, which spurred consumer spending. Equity and bond markets have opened, with greater liquidity allowing corporations to refinance, and the government stimulus has stabilized the Financials sector. In this environment, mid-cap value stocks outperformed mid-cap growth stocks as well as both large- and small-cap value stocks.

The greatest relative contributor to results was stock picks among Materials companies, where the portfolio is slightly overweight. Contributors included a mining company, a containerboard and corrugated packaging producer and a manufacturer of paper and wood products. An overweight to the Consumer Discretionary sector also boosted relative returns. A global auto parts and components company led the outperformance in this group. Worries about the future of the U.S. auto industry have lessened, brightening the horizon for parts suppliers. While the macro environment for the American consumer is difficult, we see opportunity for patient investors in quality companies that are attractively priced.

The portfolio is also overweight in Information Technology companies, which was advantageous during the period. While reduced business spending has hurt the sector, technology companies have faced a challenging environment for a long time, and many firms have already compensated. As a result, pricing is attractive, companies have started carrying more cash on their balance sheets, and business processes have been streamlined.

Stock selection in the Telecommunication Services group detracted from returns, but being underweight in the weak sector largely offset the relative loss.

PERFORMANCE TABLE1,5	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Mid Value Fund Class NAV (began 1/2/09)		—	—	—	—		—	—	—	26.10	%
Russell Midcap Value Index3,4,5		—	—	—	—		—	—	—	20.80	%

 

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  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.

4  It is not possible to invest directly in an index.

5  Since inception, a portion of the Mid Value Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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. For Class NAV, the net expense equals the gross expense and is 0.91%.

39

Natural Resources Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Karl E. Bandtel and James A. Bevilacqua

INVESTMENT OBJECTIVE & POLICIES  4 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	60.80
Basic Materials	27.93

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Natural Resources Class NAV returned –27.20%, compared to the –23.62% return of the Combined Index.

Market Environment  4 Global equity markets fell during the one-year period as difficulty in credit markets persisted and many countries struggled through recession. Equity markets bottomed in March 2009 before rebounding off their lows, as many companies beat earnings expectations driven by significant cost-cutting measures. Several countries began to report economic growth in August 2009 and declared that they had moved out of recession and into recovery. Natural resources stocks, while down for the one-year period, have similarly begun to recover, led by Chinese demand for industrial metals.

Underperformance was primarily the result of weak security selection, particularly in the Oil & Gas and Metals & Mining industries. Underweights to Metals & Mining and Paper & Forest Products detracted from relative results as well. Relative detractors from performance included a diversified natural resources company and two mining companies.

The fund benefited from an underweight to Energy Equipment & Services and an overweight to Gas Utilities. A gold producer was among the top relative contributors to performance along with underweight positions in two mining companies

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Natural Resources Class 1 (began 10/15/05)		–27.25	%	—	—	5.21	%		–27.25	%	—	—	21.78	%
Natural Resources Class NAV (began 10/15/05)		–27.20	%	—	—	5.26	%		–27.20	%	—	—	22.02	%
Combined Index2,3,4		–23.62	%	—	—	3.12	%		–23.62	%	—	—	12.81	%

 

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  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 is comprised of 60% MSCI World Energy Index, 30% MSCI World Metals & Mining Index and 10% MSCI World Paper & Forest Products Index.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 1.11% and Class NAV – 1.06%.

40

Real Estate Equity Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: David M. Lee

INVESTMENT OBJECTIVE & POLICIES  4 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	74.11
Consumer, Cyclical	2.99
Basic Materials	1.15

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Real Estate Equity Class NAV returned –34.63%, compared to the –34.72% return of the Dow Jones Wilshire REIT Index.

Market Environment  4 Despite the bounce-back early in the second quarter of 2009, major real estate segments sold off considerably over the 12-month period on concerns that commercial real estate companies, both public and private, faced challenges in refinancing borrowings in the tight credit environment.

The health care segment was the best performer for the 12-month period as investors have been drawn to this subsector due to the perception that it will be immune or resistant to any economic slowdown. The lodging segment held up relatively well, as did apartments. However, continued employment weakness may create significant challenges for apartment landlords.

Industrial stocks pulled back as mounting concerns about consumer and commercial weakness held back domestic economic expansion. Shopping center REITs also suffered due to rising unemployment and weak consumer trends. Headwinds still loom for the real estate segment, including further deleveraging and potential drops in occupancy rates due to economic weakness. The low levels of new supply remain favorable to the long-term prospects for commercial real estate as demand recovers. However, job losses have translated into softening demand for commercial real estate properties.

Over the last year, regional malls was the largest contributor to relative performance. The sector’s recent equity capital-raising activities have helped diminish some investor skepticism towards the group. We continue to adhere to our long-term investment strategy, and portfolio turnover has remained relatively low despite the market volatility.

Solid stock selection in industrial REITs was also the largest contributor to relative performance, though absolute returns in the subsector were the worst of any segment in the Index.

Our underweight to health care REITs was the largest detractor from relative results as investors have been drawn to this subsector due to the perception that it will be immune or resistant to any economic slowdown. A lack of exposure to several popular names in the combined office and industrial segment also detracted from results as this was one of the best performing subsectors in the index.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Real Estate Equity Class NAV (began 4/28/06)		–34.63	%	—	—	–11.87	%		–34.63	%	—	—	–34.45	%
Dow Jones Wilshire REIT Index2,4,5		–34.72	%	—	—	–12.37	%		–34.72	%	—	—	–35.67	%

 

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  Since inception, a portion of the Real Estate Equity Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

4  Dow Jones Wilshire REIT Index is an unmanaged index consisting of actively traded real estate investment trusts.

5  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.91%.

41

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  4 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	83.73
Diversified	0.12

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Real Estate Securities Class 1 returned –33.01%, compared to the –32.76% return of the Morgan Stanley REIT Index.

Market Environment  4 As the reporting period started, real estate investment trusts were outperforming broader equity indices. This changed abruptly as REITs erased their year-to-date relative gains on the back of a dramatic decline of more than 60% through November 20, which marked the bottom for 2008. This decline came from the belief that the once unthinkable scenario is now possible — that a REIT with substantial equity beyond its outstanding debt would need to declare bankruptcy. These concerns manifested themselves through the meaningful widening seen in commercial mortgage-backed securities. From that date, REITs rebounded more than 55% through year-end, but in 2009, REIT prices continued to be hurt by lack of confidence in the financial sector. Continued concerns regarding REITs’ ability to refinance existing debt resulted in significant negative performance.

There were some signs of life in real estate debt markets, but the market remained skeptical overall. The REIT market then rebounded very sharply from lows in early March. Strengthening in all credit markets coupled with a large amount of equity issuance put most constituents in the REIT sector in a position to address their capital needs through 2012. Prices rose for many secondary issuers as default risk that was reflected in equity prices was removed. This continued through the end of the reporting period as unsecured debt markets opened for a larger number of issuers. Positive economic releases coupled with a handful of asset sales announcements are suggesting that the bottom in both real estate values and fundamentals may be behind us.

Overall, our stock selection had a positive impact on performance. Strong stock selection in the Retail, Office, Apartments, and Health Care sectors benefited performance, while weaker stock selection in the Industrial, Regional Malls and Self Storage sectors detracted from results. Stock selection in the Hotels sector had a slightly positive impact on performance. Overall, sector selection hurt performance. Our underweight to the underperforming Retail sector aided performance. However, this was more than offset by our allocation to Industrial stocks, and our underweight to the underperforming Regional Mall stocks. Other sector allocations had a roughly neutral effect on performance.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Real Estate Securities Class 1 (began 10/15/05)		–33.01	%	—	—	–4.23	%		–33.01	%	—	—	–15.44	%
Morgan Stanley REIT Index2,3,4		–32.76	%	—	—	–4.56	%		–32.76	%	—	—	–16.55	%

 

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  Morgan Stanley REIT Index is an unmanaged index consisting of the most actively traded real estate investment trusts.

4  It is not possible to invest directly in an index.

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. For Class 1, the net expense equals the gross expense and is 0.82%.

42

Real Return Bond Fund
Subadviser: Pacific Investment Management Company LLC
Portfolio Manager: Mihir Worah

INVESTMENT OBJECTIVE & POLICIES  4 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 or derivatives based thereon.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Treasury Inflation-Protected Securities	75.86
Financial	8.41
Government	1.79
Asset Backed Securities	1.58
Federal Home Loan Mortgage Corp.	1.55
Mortgage Securities	1.28
Consumer, Non-cyclical	0.89
Energy	0.78
Consumer, Cyclical	0.29
Technology	0.28

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Real Return Bond Class NAV returned +1.11%, compared to the –0.48% return of the Barclays Capital Global Real U.S. TIPS Index.

Market Environment  4 Early in the period, most fixed income securities lost ground, as the most severe credit crisis since the 1930s rocked global markets with the collapse and deep troubles of large financial institutions. Massive deleveraging produced an upheaval in the U.S. financial system and an unprecedented level of intervention by the Federal Reserve and the U.S. Treasury took place. Through the end of 2008, interest rates fell worldwide and yield curves in the U.S., Europe and the U.K. steepened, as investors fled to the safety of government bonds, particularly shorter maturities.

During 2009, interest rates rose and capital flowed back toward riskier assets. Government policy initiatives helped restore a measure of stability to financial markets after the extreme stress and volatility of 2008. Higher U.S. Treasury yields were a drag on economic recovery, as they muted the impact of narrower yield and credit premiums for borrowers, especially in the home mortgage market. While some of the weakening in U.S. Treasury valuations could be explained by a reversal of 2008’s flight to liquidity and quality, other factors were in play as well. Investors worried that the massive new issuance of U.S. Treasuries looming on the horizon would overwhelm demand. Another concern was that the Fed’s injection of liquidity would eventually fuel inflation once the economy started to recover.

An emphasis on shorter maturities in the U.S., U.K., and Euroland added to returns over the past fiscal year as yield curves steepened dramatically across all three regions. Overweight nominal duration in the U.S. added to returns as U.S. yields fell. Favoring inflation-linked bonds (ILBs) over nominal securities in Japan detracted from returns, as real yields rose due to very poor liquidity and demand for ILBs. In the U.S., an overweight to Treasury Inflation Protected Securities (TIPS) also hurt performance as real interest rates rose amid extremely illiquid market conditions and sharply declining commodity prices. An allocation to U.S. agency mortgages was positive as these bonds outperformed U.S. Treasuries. Exposure to investment grade corporates added slightly to returns as the sector outperformed U.S. Treasuries. However, an emphasis on high-grade financials more than offset this positive impact as financial names underperformed U.S. Treasuries, despite their rebound in 2009.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Real Return Bond Class 1 (began 10/15/05)		0.99	%	—	—	4.50	%		0.99	%	—	—	18.63	%
Real Return Bond Class NAV (began 10/15/05)		1.11	%	—	—	4.54	%		1.11	%	—	—	18.80	%
Barclays Capital Global Real U.S. TIPS Index2,3,4		–0.48	%	—	—	4.59	%		–0.48	%	—	—	19.02	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Barclays Capital Global Real U.S.TIPS Index is an unmanaged index that consists of Inflation-Protection securities issued by the U.S.Treasury.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.80% and Class NAV – 0.75%.

43

Short Term Government Income Fund
Subadviser: MFC Global Investment Management (U.S.), LLC
Portfolio Managers: Jeff Given and Howard Greene

INVESTMENT OBJECTIVE & POLICIES  4 To seek a high level of current income consistent with preservation of capital by investing, under normal circumstances, at least 80% of its assets in obligations issued or guaranteed by the U.S. government and its agencies, authorities or instrumentalities (U.S. government securities). Under normal circumstances, the Fund’s dollar-weighted average maturity is not more than 3 years. Maintaining a stable share price is a secondary goal.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
U.S. Treasury Notes	18.82
Federal Farm Credit Bank	15.81
Tennessee Valley Authority	10.60
Government	9.99
Federal National Mortgage Association	9.00
Federal Agricultural Mortgage Corp.	9.00
Federal Home Loan Mortgage Corp.	8.95
Federal Home Loan Bank	7.30
Mortgage Securities	5.36
Financial	2.15

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the period from the Fund’s inception on January 2, 2009 to August 31, 2009, the Short Term Government Income Class NAV returned +1.40%, compared to the +0.61% return of the Barclays Capital U.S. Government 1–5 Year Index.

Market Environment  4 Short-term U.S. government securities posted mixed but generally positive returns for the reporting period. At the beginning of the period, short-term Treasury yields were near historically low levels amid a severe economic downturn and a liquidity crisis in the credit markets that led the Federal Reserve to cut its federal funds rate target to a range of 0% to 0.25%. However, by the spring of 2009, the U.S. economy began to show signs of stabilization, and liquidity in the credit markets gradually improved. As a result, short-term Treasury yields rose as the market priced in future interest rate increases from the Fed, pushing the prices of short-term Treasury securities lower. Although short-term Treasury securities produced modestly negative returns for the reporting period, other short-term government bonds fared better. Fifteen-year mortgage-backed securities, which tend to have an average life comparable to five-year Treasury securities, generated the best returns. Adjustable-rate mortgage-backed securities and short-term government agency bonds also delivered positive returns for the period.

The portfolio’s outperformance of its benchmark index resulted primarily from its limited exposure to Treasury securities, which made up about 20% of the portfolio (versus 68% of the Index). Modest exposure to mortgage-backed securities, which are not represented in the Index, also added value during the period. The portfolio focused on securities backed by 15-year fixed-rate mortgages and hybrid adjustable-rate mortgages. The remainder of the portfolio was invested in a diversified array of short-term government agency securities. At the beginning of the period, the portfolio held a notable position in short-term Treasury Inflation-Protected Securities, which were pricing in a flat to declining inflation rate at the time. These securities subsequently rallied as the market began to factor in a higher expected inflation rate, and we took advantage of the gains to reduce our position.

We continue to expect positive but modest economic growth through the end of 2009, which will likely keep short-term interest rates in a fairly narrow range. Consumers’ efforts to pay down debt should limit economic activity, and the relatively high unemployment rate should keep labor costs in check, dampening inflation.

PERFORMANCE TABLE1,5	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Short Term Government Income Class NAV (began 1/2/09)		—	—	—	—		—	—	—	1.40	%
Barclays Capital US Govt 1-5 Yr Index2,3,4		—	—	—	—		—	—	—	0.61	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  The Barclays Capital U.S. Govt 1–5 Yr Index is an unmanaged index of securities issued by the U.S. government with maturities of one to five years.

4  It is not possible to invest directly in an index.

5  Since inception, a portion of the Short Term Government Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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. For Class NAV, the net expense equals the gross expense and is 0.65%.

44

Small Cap Growth Fund
Subadviser: Wellington Management Company, LLP
Portfolio Manager: Steven Angeli, CFA

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital appreciation by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in small-cap companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	28.91
Consumer, Cyclical	24.47
Industrial	14.99
Technology	13.70
Communications	9.48
Financial	5.09
Energy	2.50
Basic Materials	0.86

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the period from its inception on September 10, 2008 to August 31, 2009, the Small Cap Growth Class NAV returned –16.20%, compared to the –16.14% return of the Russell 2000 Growth Index.

Market Environment  4 For the one-year period ended August 31, 2009, U.S. small cap equities, as measured by the Russell 2000 Index, fell 20.6%. The U.S. economy entered a recession as consumer demand slowed, unemployment rose, and credit markets froze, leading to a significant drop in equity valuations. Equity markets bottomed in March 2009 before rebounding, gaining 50% off of their lows, as many companies beat earnings expectations, driven by significant cost-cutting measures. Some signs of a recovery have begun to emerge as revised second-quarter GDP growth came in better than expected, sales of both new and existing homes increased, and payroll losses slowed.

Security selection drove the Fund’s outperformance during the period, particularly in the Information Technology, Industrials, Financials and Consumer Discretionary sectors. The Fund also benefited from an underweight to the Energy sector and an overweight to Consumer Discretionary.

Security selection within the Health Care and Materials sectors detracted from relative results, as did an underweight to Information Technology.

PERFORMANCE TABLE1	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Small Cap Growth Class NAV (began 9/10/08)		—	—	—	—		—	—	—	–16.20	%
Russell 2000 Growth Index2,3,4		—	—	—	—		—	—	—	–16.14	%

 

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  Russell 2000 Growth Index in an unmanaged index that contains these securities from the Russell 2000 Index with a greater than average growth orientation.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.17%.

45

Small Cap Index Fund
Subadviser: MFC Global Investment Management (U.S.A.) Limited
Portfolio Managers: Carson Jen and Narayan Ramani

INVESTMENT OBJECTIVE & POLICIES  4 The Fund seeks to approximate the aggregate total return of a small-cap U.S. domestic equity market index by investing primarily in (a) common stocks that are included in the Russell 2000 Index and (b) securities that are believed as a group 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	20.85
Financial	17.76
Industrial	12.55
Consumer, Cyclical	12.21
Technology	9.03
Communications	7.07
Basic Materials	3.45
Energy	3.36
Utilities	3.11
Diversified	0.01

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Small Cap Index Class NAV returned –21.60%, compared to the –21.29% return of the Russell 2000 Index.

Market Environment  4 The past year has witnessed major historical events among U.S. financial institutions, including the bankruptcies of Lehman Brothers and Washington Mutual, and the government takeover of AIG, Fannie Mae and Freddie Mac. Throughout the year, we also saw a major reduction in credit access for corporations, small businesses and individuals.

During the first quarter of 2009, Barack Obama became president of the United States. In January, the House approved his $819 billion economic recovery plan. Economists believe that President Obama’s stimulus plan and Federal Reserve measures will help the U.S. economy by late 2009 to early 2010. By the end of the second quarter of 2009, unemployment in the U.S. rose to a 26-year high. The jobless rate increased to 9.7% at the end of August. The bankruptcies of such large companies as General Motors and Chrysler contributed significantly to these recent job losses. The Conference Board’s Consumer Confidence Index remained low through the year, reaching 54 in August 2009. The lowest confidence level was in February 2009 when it dipped to 25.

The job benefits of the federal stimulus program have yet to be felt in the real economy. Until then, continued market volatility is expected in the upcoming quarters.

The Small Cap Index Fund is designed to track the performance of the Russell 2000 Index. Any difference in performance is attributable to trading costs and other expenses not incurred by the index.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Small Cap Index Class NAV (began 10/29/05)		–21.60	%	—	—	–1.83	%		–21.60	%	—	—	–6.85	%
Russell 2000 Index2,4,5		–21.29	%	—	—	–1.36	%		–21.29	%	—	—	–5.14	%

 

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  Since inception, a portion of the Small Cap Index Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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.

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. For Class NAV, the net expense equals the gross expense and is 0.56%.

46

Small Cap Opportunities Fund
Subadviser: Dimensional Fund Advisors LP and Invesco AIM Capital Management, Inc.
Portfolio Managers: Juliet S. Ellis, Juan R. Hartsfield, Clay Manley and Stephen Clark

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital appreciation by investing primarily in equity securities of small-capitalization companies.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Cyclical	17.27
Industrial	16.18
Financial	14.78
Consumer, Non-cyclical	11.79
Communications	8.60
Technology	8.38
Energy	6.48
Basic Materials	4.40
Utilities	1.75

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Small Cap Opportunities Class NAV returned –18.24%, compared to the –21.29% return of the Russell 2000 Index.

Invesco Aim Commentary

Market Environment  4 Major U.S. equity markets fell by double digits during much of the period, as significant problems in the credit markets, weakness in the housing market, rising energy and food prices and a deteriorating outlook for corporate earnings led to a global economic recession. However, global equity markets began to recover some of these losses in early March 2009.

The Fund underperformed its benchmark by the widest margin in the Health Care sector, driven by stock selection. The Fund had relatively weak results in the Financials, Materials, Utilities and Energy sectors. This weakness was offset by strength in other sectors, including Consumer Staples, Consumer Discretionary and Industrials. The Fund outperformed by the widest margin in the Consumer Staples sector, driven by stock selection and an overweight position. Outperformance in the Consumer Discretionary sector was driven by stock selection and an underweight position. Outperformance in the Industrials sector was also due to stock selection.

At the end of the reporting period, the largest overweight positions versus the Russell 2000 Index were in the energy, semiconductor, transportation, and capital goods industry groups. The largest underweight positions were in the real estate, pharmaceuticals/biotechnology/life sciences, banks and technology hardware/equipment industry groups.

DFA Commentary

Market Environment  4 Dimensional Fund Advisors LP started to manage this portion of the portfolio on December 19, 2008.

While the U.S. equity market had excellent returns in the first eight months of 2009 (the return for the broad U.S. market, as measured by the Russell 3000 Index, was 16.3%), those months were characterized by two extraordinary periods. From January to early March, equity prices continued to decline at a fast pace. From early March until August, prices rose sharply as the fears of a systemic collapse of the world economy subsided and financial markets showed signs of stabilization. Volatility and divergent performance in various markets moderated from the levels reached in the fall of 2008, but remained above historical averages. Small differences in portfolio weights between different strategies or between strategies and benchmarks often resulted in large performance differences.

The portfolio’s greater exposure than the Index to deep value stocks, which greatly outperformed growth stocks, had a large positive impact on relative performance. Composition differences also had a strong positive impact on relative performance. The Fund’s greater exposure than the Index to mid-cap stocks, and other differences in allocation across the market capitalization segments had a negative impact on relative performance, as small-cap and micro-cap stocks outperformed larger stocks. However, composition differences within different market capitalization segments had a positive impact on the portfolio’s relative performance.

The exclusion of REITs and the Utilities sector, one of the worst-performing sectors from January to August, added to the portfolio’s relative performance. The Fund’s overweight to the Consumer Discretionary sector and other sector allocation differences boosted the portfolio’s relative performance. Composition differences within those sectors, especially in the Consumer Discretionary and Industrials sectors, also had a large positive impact on results.

PERFORMANCE TABLE1,7	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Small Cap Opportunities Class 1 (began 10/15/05)		–18.28	%	—	—	–6.66	%		–18.28	%	—	—	–23.47	%
Small Cap Opportunities Class NAV (began 10/15/05)		–18.24	%	—	—	–6.62	%		–18.24	%	—	—	–23.32	%
Russell 2000 Index2,3,5,6		–21.29	%	—	—	–1.25	%		–21.29	%	—	—	–4.78	%
Russell 2000 Value Index2,4,5,6		–20.68	%	—	—	–1.91	%		–20.68	%	—	—	–7.20	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Russell 2000 Index is an unmanaged index composed of 2,000 U.S. Small Capitalization Stocks.

4  Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

5  In December 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.

6  It is not possible to invest directly in an index.

7  Since inception, a portion of the Small Cap Opportunities Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 net expenses equal the gross expenses and are as follows: Class 1 – 1.11% and Class NAV – 1.06%.

47

Small Cap Value Fund
Subadviser: Wellington Management Company, LLP
Portfolio Managers: Timothy McCormack, CFA and Shaun Pedersen

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital appreciation by investing in, under normal market conditions, at least 80% of its net assets (plus any borrowings for investment purposes) in small-cap companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	24.88
Industrial	21.26
Consumer, Non-cyclical	17.30
Consumer, Cyclical	14.76
Utilities	5.73
Energy	4.56
Technology	3.78
Basic Materials	3.64
Communications	1.31

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 From the fund’s inception on December 16, 2008 to August 31, 2009, the Small Cap Value Class NAV returned +25.00%, compared to the +23.68% return of the Russell 2000 Value Index.

Market Environment  4 For the reporting period, small-cap U.S. equities, as measured by the Russell 2000 Index, gained 27.9%. Equity markets fell during the first quarter of 2009 before bottoming in March. Equities subsequently rebounded sharply as corporate earnings exceeded expectations, primarily driven by significant cost-cutting measures. While revenue growth remains challenged, some signs of an economic recovery began to emerge as revised second quarter GDP came in better than expected, sales of both new and existing homes improved off low levels, and payroll losses slowed. Mid-cap stocks outperformed small-cap stocks, which in turn outpaced their large-cap counterparts, as measured by the S&P 400 MidCap, Russell 2000, and S&P 500 indices, respectively. Growth stocks outperformed value stocks as measured by the Russell 2000 Growth and Russell 2000 Value indices.

The fund benefited from strong stock selection in the Financials, Industrials, Consumer Staples and Utilities sectors. Among the top contributors to performance were a specialty department store retailer, a diversified manufacturer, and a data storage provider. Weaker security selection within the Consumer Discretionary, Information Technology and Materials sectors detracted from relative results. Among the top relative detractors were an energy exploration and production company, a thermal management technology manufacturer, and a financial holding company. The fund’s weights versus the Index, which were driven by bottom-up stock decisions, contributed to relative performance due to an overweight to the Consumer Discretionary sector and an underweight to Financials.

PERFORMANCE TABLE1	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Small Cap Value Class NAV (began 12/16/08)		—	—	—	—		—	—	—	25.00	%
Russell 2000 Value Index2,3,4		—	—	—	—		—	—	—	23.68	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.17%.

48

Small Company Growth Fund
Subadviser: Invesco AIM Capital Management, Inc.
Portfolio Managers: Juliet S. Ellis, Juan R. Hartsfield and Clay Manley

INVESTMENT OBJECTIVE & POLICIES  4 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	19.05
Technology	15.62
Consumer, Cyclical	12.95
Industrial	12.80
Financial	7.39
Communications	6.50
Energy	5.14
Utilities	1.47
Basic Materials	0.37

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Small Company Growth Class NAV returned –20.42%, compared to the –22.02% return of the Russell 2000 Growth Index.

Market Environment  4 Major U.S. equity markets fell by double digits during much of the period, as significant problems in the credit markets, weakness in the housing market, rising energy and food prices and a deteriorating outlook for corporate earnings led to a global economic recession. However, global equity markets began to recover some of these losses in early March 2009.

The Fund outperformed its benchmark by the widest margin in the Energy sector, largely due to stock selection. The Energy sector was the weakest performing sector in the Russell 2000 Growth Index during the period. In this environment, the Fund’s holdings generally held up better than those of the benchmark.

The Fund outperformed in the Industrials sector, driven by stock selection. The Fund’s holdings in this sector generally held up better than those of the benchmark index. Good stock selection was also the reason the fund outperformed in the Consumer Discretionary sector. Several of the Fund’s Consumer Services holdings, including some restaurant operators, also made key contributions to performance. Underperformance was concentrated in the Health Care sector, where it was driven by stock selection.

At period end, the largest overweight positions versus the Russell 2000 Growth Index were in the energy, semiconductors, diversified financials and media industry groups. The largest underweight positions were in the consumer durables/apparel, pharmaceuticals/life sciences/biotechnology, health care equipment/services, and food/beverage/tobacco industry groups.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Small Company Growth Class NAV (began 10/29/05)		–20.42	%	—	—	–0.26	%		–20.42	%	—	—	–1.01	%
Russell 2000 Growth Index2,3,4		–22.02	%	—	—	–1.26	%		–22.02	%	—	—	–4.77	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Russell 2000 Growth Index is an unmanaged index that contains those securities from the Russell 2000 Index with a greater than average growth orientation.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 1.10%.

49

Small Company Value Fund
Subadviser: T. Rowe Price Associates, Inc.
Portfolio Manager: Preston G. Athey

INVESTMENT OBJECTIVE & POLICIES  4 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 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	21.26
Financial	18.25
Consumer, Cyclical	12.15
Consumer, Non-cyclical	12.10
Basic Materials	8.19
Technology	5.72
Energy	4.75
Utilities	3.44
Communications	2.25
Investment Companies	1.02

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Small Company Value Class NAV returned –18.43%, compared to the –20.68% return of the Russell 2000 Value Index.

Market Environment  4 The past 12 months saw the emergence of one of the greatest financial crises and economic contractions of the postwar era. The Russell 2000 Value Index posted significant double-digit losses during the period. It held up better than its small-cap growth counterpart, but underperformed its large-cap value peer. All sectors declined. Energy was the worst performer by far, reflecting declining commodity prices due to the economic downturn. Telecommunication Services, Industrials and Business Services and Financials also dropped substantially. The traditionally defensive Consumer Staples and Utilities sectors held up relatively well, but still posted losses.

Against that backdrop, the portfolio posted a double-digit loss, but still outpaced its Russell index. Broadly speaking, stock selection helped relative results, while sector allocation detracted. Financials provided the greatest boost to relative returns, due to stock selection and a beneficial underweight. We are sharply underweight in this sector, which makes up nearly a third of the Index, but we have selectively added to our holdings as we find attractive valuations.

In Consumer Discretionary, we benefited from stock selection and an overweight. Though this sector faces considerable challenges from depressed consumer spending, we believe that valuations are well below historical norms. We continue to seek out strong companies that can successfully navigate this difficult environment. Our stock holdings in Health Care also held their value better than their benchmark peers. The portfolio is slightly overweight in Health Care due to its relatively low sensitivity to shifts in economic conditions, long-term growth prospects, and wide range of reasonably valued companies.

Energy was the leading detractor due to an unfavorable overweight and weak stock selection. Despite this sector’s poor performance this year, we believe that an imbalance between supply and demand will begin to emerge, helping long-term prospects. Our overweight in Industrials, as well as an underweight in Consumer Staples, also broadly hurt relative results.

PERFORMANCE TABLE1,3,6	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Small Company Value Class 1 (began 10/15/05)		–18.47	%	—	—	0.74	%		–18.47	%	—	—	2.88	%
Small Company Value Class NAV (began 10/15/05)		–18.43	%	—	—	0.78	%		–18.43	%	—	—	3.07	%
Russell 2000 Value Index2,4,5		–20.68	%	—	—	–1.91	%		–20.68	%	—	—	–7.20	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Since inception, a portion of the Small Company Value Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

4  Russell 2000 Value Index is an unmanaged index that measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

5  It is not possible to invest directly in an index.

6  Since inception, a portion of the Small Company Value Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 net expenses equal the gross expenses and are as follows: Class 1 – 1.12% and Class NAV – 1.07%.

50

Smaller Company Growth Fund
Subadviser: Frontier Capital Management Company, MFC Global Investment Management (U.S.A.) Limited, Perimeter Capital Management, LLC
Portfolio Managers: Michael Cavarreta, Christopher Scarpa, Carson Jen, Narayu Ramani, Mark Garfinkel and James Behre

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital appreciation by investing, under normal market conditions, at least 80% of its assets in small cap equity securities.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Consumer, Non-cyclical	19.86
Consumer, Cyclical	15.47
Communications	14.97
Industrial	14.51
Technology	9.22
Financial	7.21
Energy	6.24
Basic Materials	2.45
Investment Companies	0.88
Utilities	0.31

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 From the fund’s inception on October 7, 2008 to August 31, 2009, the Smaller Company Growth Class NAV returned +3.80%, compared to the +2.20% return of the Russell 2000 Growth Index.

Frontier Commentary
Market Environment  4 The two sectors contributing most significantly to performance were Consumer Discretionary and Producer Durables. The fund was underweight Consumer Discretionary stocks, which hurt performance slightly. However, this was more than offset by very strong stock selection. In Producer Durables, we maintained a slight underweight and again achieved significant outperformance with solid stock selection. The single largest detractor was the Health Care sector. Our slight underweight had a small positive effect, but poor stock selection had a substantially negative impact.

The fund lost relative ground in the second quarter, during which time performance was driven by stocks with the smallest market capitalizations, lowest price-to-earnings ratios, lowest return on equity, and stocks that traded below $5 a share. It was difficult for the portfolio’s returns to keep pace with performance from these areas, given the fund’s bias towards higher-quality, better-managed companies.

The economic data is no longer universally grim, equity markets have staged a meaningful rally, and credit market strains have eased. While we believe that the most intense phase of the domestic and global economic downturn has ended, the outlook remains fragile and any recovery is likely to be constrained for some time. With this in mind, the fund is very cautious in selecting stocks. Only companies not requiring a strong, sustained advance in domestic economic activity in order to grow their earnings or companies with exceptionally attractive risk/reward characteristics will be considered for inclusion in the portfolio.

Perimeter Commentary
Market Environment  4 The most recent year was a tale of two very different markets. It not only included one of the worst quarters in the U.S. equity markets since 1929 but also an extraordinary rally, where the Russell 2000 Growth Index appreciated nearly 54% in just 70 trading days. In addition to the tremendous magnitude of the market’s movement, much of the rebound since the market’s bottom on March 9 was concentrated in small, low-valuation, negative return companies versus larger, more profitable and generally higher-quality companies.

As concerns over the depth and breadth of the financial crisis exacerbated the market sell-off in late 2008, we remained dedicated to our investment discipline, where our broad diversification helped to dampen volatility. Despite the market’s lower-quality rally and the fund’s higher quality characteristics, the fund benefited from strong stock selection, particularly in Technology, Industrials and Energy. The portfolio’s excess returns were also attributable to overweight positions in the top-performing Technology and Consumer Discretionary sectors as well as from an underweight position in Health Care.

The fund was also rewarded for moderating our Technology sector overweight in early 2008 in advance of the software industry’s lengthening sales cycles, smaller deal sizes and headwinds from a strengthening dollar due to large international exposure. Our persistent overweight to Technology, one of the best performing sectors over the past year, was the result of uncovering a number of companies in the sector that had strong, long-term growth prospects and traded at compelling valuations. By contrast, our underweight to the Health Care sector reflected our continued concerns over the impact of the credit crisis coupled with the specter of health care reform. We also avoided biotechnology companies as they generally do not possess strong balance sheets or earnings growth characteristics.

We continue to manage our portfolio using our bottom-up research, focusing on companies that demonstrate strong growth characteristics and we look forward to a more rational market where business fundamentals and strong earnings growth drive positive investment results.

MFC Commentary
Market Environment  4 The past year has witnessed major historical events among U.S. financial institutions, including the bankruptcies of Lehman Brothers and Washington Mutual, and the government takeover of AIG, Fannie Mae and Freddie Mac. Throughout the year, we also saw a major reduction in credit access for corporations, small businesses and individuals.

During the first quarter of 2009, Barack Obama became president of the United States. In January, the House approved his $819-billion economic recovery plan. Economists believe that President Obama’s stimulus plan and Federal Reserve measures will help the U.S. economy by late 2009 to early 2010. By the end of the second quarter of 2009, unemployment in the U.S. rose to a 26-year high. The jobless rate increased to 9.7% at the end of August. The bankruptcies of such large companies as General Motors and Chrysler contributed significantly to these job losses in the second quarter of 2009.

The Conference Board’s Consumer Confidence Index was still low through the year, reaching 54 in August 2009. The lowest confidence level was in February 2009, when it dipped to a level of 25. The job benefits of the Obama administration’s stimulus program has yet to be felt in the real economy. Until then, continued market volatility is expected in the upcoming quarters.

PERFORMANCE TABLE1,2,6	Average Annual Total Return					Cumulative Total Return
Period Ended August 31, 2009		1-year	5-year	10-year	Since inception		1-year	5-year	10-year	Since inception
Smaller Company Growth Class NAV (began 10/7/08)		—	—	—	—		—	—	—	3.80	%
Russell 2000 Growth Index3,4,5		—	—	—	—		—	—	—	2.20	%

 

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  Since inception, a portion of the Smaller Company Growth Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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.

6  Since inception, a portion of the Smaller Company Growth Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

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 until at least October 31, 2009. For Class NAV, the net expense is 1.04%. Had the fee waivers and expense limitations not been in place, the gross expense would be 1.15%.

51

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  4 To seek a high level of current income with moderate share price fluctuation. The Fund seeks to maintain 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. The Fund diversifies its assets widely among various income and equity market segments.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Financial	13.44
Government	11.73
Government National Mortgage Association	9.65
Communications	8.72
Energy	6.93
Federal National Mortgage Association	6.11
Consumer, Non-cyclical	5.94
Consumer, Cyclical	5.40
Industrial	4.68
U.S. Treasury Notes	3.62

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Spectrum Income Class NAV returned +5.85%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Market Environment  4 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.

Results were solid outside of the portfolio’s stock position, and some key strategic choices added value against the benchmark. We gradually reduced the portfolio’s weighting in U.S. Treasuries throughout last fall, fearing that they were becoming overvalued. The move proved beneficial, as Treasuries lagged for the past six months.

Throughout the period, we gradually increased our position in corporate, high yield and emerging market bonds as they declined at the end of last year. We were able to purchase compelling securities at very attractive valuations, and benefited as all three sectors have outperformed during much of 2009 to date. We believe our measured allocations to these diversifying sectors create the potential for a long-term performance advantage while keeping portfolio volatility close to that of the overall bond market.

The past 12 months have been one of the most volatile periods in U.S. market history. Global stocks endured a historic decline in the fall of 2008 before recovering significantly year-to-date. Most bond sectors that carry credit risk, including corporate bonds, high yield and international bonds, were also battered at the end of last year but have bounced back so far in 2009. On the other hand, Treasuries rallied during the worst of the financial crunch, but have since lost ground as investors have become worried about inflation.

We remain optimistic that the actions taken by governments and central banks around the world to increase liquidity, restore investor confidence, and get global economies moving again are beginning to have their desired effect. A gradually improving environment should be supportive of the more economically sensitive segments of the portfolio, such as high yield bonds and dividend-paying stocks, while more interest rate-sensitive segments of the bond market may be hampered by upward pressure on rates following these significant levels of fiscal and monetary stimulus.

PERFORMANCE TABLE1,3	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Spectrum Income Class NAV (began 10/29/05)		5.85	%	—	—	5.28	%		5.85	%	—	—	21.92	%
Barclays Capital U.S. Aggregate Bond Index2,4,5		7.94	%	—	—	5.73	%		7.94	%	—	—	23.94	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Since inception, a portion of the Spectrum Income Fund expenses were reimbursed. If such expenses had not been reimbursed, returns would be lower.

4  Barclays Capital U.S. 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.

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. For Class NAV, the net expense equals the gross expense and is 0.86%.

52

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  4 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	15.71
Financial	13.37
Mortgage Securities	6.79
Energy	5.44
Communications	4.72
Consumer, Non-cyclical	4.11
Utilities	3.84
Federal Home Loan Bank	3.57
Federal Home Loan Mortgage Corp.	3.14
Asset Backed Securities	2.95

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Strategic Bond Class NAV returned +4.52%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Market Environment  4 During the fiscal year, the fixed income market experienced periods of extreme volatility. Changing perceptions regarding the economy, inflation, deflation and future Federal Reserve monetary policy caused bond prices to fluctuate.

As the period began, we were in the midst of a flight to quality, triggered by the seizing credit markets. Investors’ risk aversion further intensified from September through November given the severe disruptions in the global financial markets. At the epicenter of the turmoil was the September 2008 bankruptcy of Lehman Brothers. During this time, investors were drawn to the safety of shorter-term Treasuries, driving their yields down to historically low levels. In contrast, riskier portions of the fixed income market performed extremely poorly, as spreads in many sectors widened to record high levels.

During the second half of the period, Treasury yields moved higher, especially on the long end of the curve. This was due to less demand for these securities, as risk aversion abated. Longer-term Treasuries were affected by concerns regarding the massive amount of new government issuance that would be needed to fund the economic stimulus package. A return to more normal market conditions, including improved liquidity and signs that the economy may be bottoming, caused a sharp rebound in the spread sectors (non-Treasuries). Following their poor performance in the first half of the fiscal year, many of the spread sectors recouped much of their earlier losses over the final six months of the reporting period.

Allocation to non-agency mortgage-backed securities was the largest contributor to underperformance. These securities declined dramatically in value in 2008 and they only started to recover in 2009. The fund’s exposure to investment grade credits, especially to capital securities, also hurt the fund’s performance, given the onset of the financial crisis in late 2008. Duration strategy had a negative impact as Treasury rates, despite their decline, were volatile during the reporting period. Issue selection of certain high yield names was a positive contributor overall. There were no major currency strategies during the period.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Strategic Bond Class 1 (began 10/15/05)		4.55	%	—	—	2.09	%		4.55	%	—	—	8.37	%
Strategic Bond Class NAV (began 10/15/05)		4.52	%	—	—	2.13	%		4.52	%	—	—	8.51	%
Barclays Capital U.S. Aggregate Bond Index2,3,4		7.94	%	—	—	5.77	%		7.94	%	—	—	24.33	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.80% and Class NAV – 0.75%.

53

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  4 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	28.09
Communications	14.69
Consumer, Cyclical	13.63
Mortgage Securities	13.22
Financial	6.36
Industrial	6.31
Basic Materials	3.97
Consumer, Non-cyclical	3.49
Energy	3.04
Federal National Mortgage Association	1.95

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Strategic Income Class NAV returned +10.67%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Market Environment  4 The last 12 months will rank among the most volatile in the history of capital markets. As the global economy sank deeper into recession, the effects of the credit crunch reached their zenith with the bankruptcy of Lehman Brothers and bailout of AIG in September of 2008. The next six months were characterized by deleveraging and an unprecedented selling of risky assets. Equities were sold mercilessly, corporate credit spreads widened to levels not seen since the Great Depression, and government bonds outperformed as investors fled to safety. Governments around the globe countered with aggressive fiscal and monetary policy action to combat the economic downturn and restore confidence in financial markets. Investor confidence began to rebuild earnestly in April and May. Credit spreads rallied as quickly as they blew out and were tighter at the end of the year than at the beginning. As a result, both government and corporate bonds performed well overall.

Contributing most to relative performance was the portfolio’s overweighting of corporate bonds. Though investment grade bonds generally outperformed during the year, the Fund’s high yield bond holdings in the television and radio content providers were the best performers. Also aiding performance was the portfolio’s tactical hedging of its non-U.S. dollar bonds. The high level of volatility exhibited over the 12-month period provided opportunity to add value by adjusting the hedges of the fund’s euro, Australian dollar and New Zealand dollar-denominated bonds. Detracting most from performance was the fund’s underweighting of duration. U.S. government bond yields were driven lower over the year due to the U.S. Federal Reserve’s quantitative easing program and consistently strong foreign demand.

Though the credit markets have started to function more normally of late, we fear that market illiquidity may return. We are also concerned about further effects the severe global recession could have on the financial markets, especially in Europe. Though we are wary of the potential for an increase in the default rate of high yield debt and its possible impact on investment grade corporate bond spreads, we also believe the environment offers opportunity to judiciously add credit at a compelling relative value.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Strategic Income Class NAV (began 4/28/06)		10.67	%	—	—	5.86	%		10.67	%	—	—	20.96	%
Barclays Capital U.S. Aggregate Bond Index2,3,4		7.94	%	—	—	6.62	%		7.94	%	—	—	23.90	%

 

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

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.76%.

54

Total Bond Market Fund
Subadviser: Declaration Management and Research, LLC
Portfolio Managers: Peter Farley and James E. Shallcross

INVESTMENT OBJECTIVE & POLICIES  4 The Fund seeks to track the performance of the Barclays Capital U.S. 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	23.39
U.S. Treasury Notes	16.65
Federal Home Loan Mortgage Corp.	14.39
Financial	9.82
U.S. Treasury Bonds	6.79
Government National Mortgage Association	5.22
Mortgage Securities	3.85
Communications	2.77
Consumer, Non-cyclical	2.61
Utilities	2.00

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Total Bond Market Class NAV returned +7.43%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Market Environment  4 Short-term interest rates fell sharply as the Federal Reserve focused on providing maximum liquidity to combat the financial crisis. Over the course of the year, the market and the economy responded to many historic events: the worst housing market since the Great Depression, the failure of Lehman Brothers, the conservatorship of the Fannie Mae and Freddie Mac, and the bailouts of AIG, Chrysler and General Motors. The government response to the crisis was swift and in most cases effective. The Troubled Asset Relief Program (TARP) stabilized many financial institutions. The Term Asset-Backed Securities Loan Facility (TALF) rejuvenated the market for asset-backed securities and commercial mortgage-backed securities.

The Fed kept the commercial paper market functioning. Equity markets bottomed in March and then recovered half of their losses, finishing down roughly 20% for the 12-month period. The financial crisis has abated now to the point that special Fed liquidity programs are being unwound. It was a very challenging market to navigate, with the credit crisis continuing to unfold and economy shrinking and going through massive job losses, while certain asset classes recovered so strongly that they finished the period at pre-crisis spread levels.

The Total Bond Market Fund is designed to track the performance of the Barclays Capital U.S. Aggregate Bond Index. Any difference in performance is attributable to trading costs and other expenses not incurred by the index.

We believe that the U.S. economy will transition to a period of sluggish growth from the current recession. Growth will come from business investment, though a rebound in consumer spending is hard to foresee as unemployment remains high. The Fed is expected to leave interest rates on hold until early 2010 though regional reports of recovery are increasing odds of a rate hike. Credit markets have recovered dramatically, though some areas of value remain in corporate bonds and commercial mortgage-backed securities.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Total Bond Market Class NAV (began 10/27/06)		7.43	%	—	—	5.80	%		7.43	%	—	—	17.39	%
Barclays Capital U.S. Aggregate Bond Index2,3,4		7.94	%	—	—	6.34	%		7.94	%	—	—	19.13	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

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

4  It is not possible to invest directly in an index.

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 until at least December 31, 2009. For Class NAV, the net expense is 0.57%. Had the fee waivers and expense limitations not been in place, the gross expense would be 0.61%.

55

Total Return Fund
Subadviser: Pacific Investment Management Company, LLC
Portfolio Manager: William H. Gross

INVESTMENT OBJECTIVE & POLICIES  4 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	35.26
Financial	20.59
U.S. Treasury Notes	15.18
Federal Home Loan Mortgage Corp.	11.25
Mortgage Securities	5.26
Government	2.46
Asset Backed Securities	2.35
U.S. Treasury Bonds	1.79
Consumer, Non-cyclical	1.63
Communications	1.00

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the Total Return Class NAV returned +12.75%, compared to the +7.94% return of the Barclays Capital U.S. Aggregate Bond Index.

Market Environment  4 Early in the period, most fixed income securities lost ground, as the most severe credit crisis since the 1930s rocked global markets with the collapse and deep troubles of large financial institutions. Massive deleveraging produced an upheaval in the U.S. financial system and an unprecedented level of intervention by the Federal Reserve and the U.S. Treasury took place. Through the end of 2008, interest rates fell worldwide and yield curves in the U.S., Europe and the U.K. steepened, as investors fled to the safety of government bonds, particularly shorter maturities.

During 2009, interest rates rose and capital flowed back toward riskier assets. Government policy initiatives helped restore a measure of stability to financial markets after the extreme stress and volatility of 2008. Higher U.S. Treasury yields were a drag on economic recovery, as they muted the impact of narrower yield and credit premiums for borrowers, especially in the home mortgage market. While some of the weakening in U.S. Treasury valuations could be explained by a reversal of 2008’s flight to liquidity and quality, other factors were in play as well. Investors worried that the massive new issuance of U.S. Treasuries looming on the horizon would overwhelm demand. Another concern was that the Fed’s injection of liquidity would eventually fuel inflation once the economy started to recover.

An emphasis on shorter maturities in the U.S., U.K., and Euroland added to returns over the past fiscal year as yield curves steepened across all three regions. U.S. duration positioning detracted from performance over the year as U.S. yields fell in the first half and rose in the second half. An overweight to mortgages was positive for returns as these bonds outperformed U.S. Treasuries. An underweight to investment grade corporates detracted from returns as the sector outperformed U.S. Treasuries. However, an emphasis on high-grade financials detracted further from returns as financial names underperformed U.S. Treasuries despite their rebound in 2009. A small allocation to emerging market debt also hurt returns slightly, as the global flight to quality continued throughout the end of 2008. Emerging markets were relatively unscathed during the financial crisis, but prospects of a global recession weighed on the asset class.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Total Return Class 1 (began 10/15/05)		12.65	%	—	—	7.11	%		12.65	%	—	—	30.55	%
Total Return Class NAV (began 10/15/05)		12.75	%	—	—	7.19	%		12.75	%	—	—	30.90	%
Barclays Capital U.S. Aggregate Bond Index2,3,4		7.94	%	—	—	5.77	%		7.94	%	—	—	24.33	%

 

1  Performance does not reflect the deduction of taxes on fund distributions or redemptions of fund shares. Past performance does not predict future performance.

2  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  Barclays Capital U.S. Aggregate Bond Index is an unmanaged index of dollar-denominated and nonconvertible investment-grade debt issues.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.79% and Class NAV – 0.74%.

56

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  4 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	32.99
Mortgage Securities	13.15
Federal Home Loan Mortgage Corp.	9.34
Federal Home Loan Bank	8.37
Asset Backed Securities	5.09
Treasury Inflation-Protected Securities	4.77
U.S. Treasury Bonds	1.36
Government National Mortgage Association	0.76
Government	0.18
Financial	0.05

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the U.S. Government Securities Class NAV returned +7.35%, compared to the +5.67% return of the Citigroup 1–10 Year Treasury Index.

Market Environment  4 During the fiscal year, the fixed income market experienced periods of extreme volatility. Changing perceptions regarding the economy, inflation, deflation and future Federal Reserve monetary policy caused bond prices to fluctuate.

As the period began, we were in the midst of a flight to quality, triggered by the seizing credit markets. Investors’ risk aversion further intensified from September through November given the severe disruptions in the global financial markets. At the epicenter of the turmoil was the September 2008 bankruptcy of Lehman Brothers. During this time, investors were drawn to the safety of shorter-term Treasuries, driving their yields down to historically low levels. In contrast, riskier portions of the fixed income market performed extremely poorly, as spreads in many sectors widened to record high levels.

During the second half of the period, Treasury yields moved higher, especially on the long end of the curve. This was due to less demand for these securities, as risk aversion abated. Longer-term Treasuries were affected by concerns regarding the massive amount of new government issuance that would be needed to fund the economic stimulus package. A return to more normal market conditions, including improved liquidity and signs that the economy may be bottoming, caused a sharp rebound in the spread sectors (non-Treasuries). Following their poor performance in the first half of the fiscal year, many of the spread sectors recouped much of their earlier losses over the final six months of the reporting period.

The fund’s allocation to agency mortgages was the largest contributor to performance. The sector was helped by the Fed’s decision to purchase agency mortgages. The fund’s exposure to Treasury Inflation-Protected Securities was also a positive as inflation expectations increased over the reporting period. Duration and curve strategies had a positive impact as the fund’s overweight position benefited from a decline in yields, especially in the intermediate region. The allocation to non-agency mortgage-backed securities was the largest detractor to performance. These securities declined dramatically in value in 2008, and they only started to recover in 2009.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
U.S. Government Securities Class 1 (began 10/15/05)		7.27	%	—	—	3.07	%		7.27	%	—	—	12.43	%
U.S. Government Securities Class NAV (began 10/15/05)		7.35	%	—	—	3.13	%		7.35	%	—	—	12.70	%
Citigroup 1-10 Year Treasury Index2,3,4		5.67	%	—	—	5.75	%		5.67	%	—	—	24.47	%

 

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  Citigroup 1-10 Year Treasury Index is a broad measure of the performance of the short-term and medium-term U.S. Treasury securities.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.77% and Class NAV – 0.72%.

57

U.S. High Yield Bond Fund
Subadviser: Wells Capital Management, Incorporated
Portfolio Managers: Phil Susser, Niklas Nordenfelt and Sean Lynch

INVESTMENT OBJECTIVE & POLICIES  4 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 bank loans.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Communications	22.61
Consumer, Non-cyclical	18.69
Financial	12.32
Consumer, Cyclical	10.26
Energy	9.96
Technology	5.31
Industrial	4.96
Basic Materials	4.86
Utilities	4.26
Mortgage Securities	0.14

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the U.S. High Yield Bond Class NAV returned +6.46%, compared to the 6.43% return of the Merrill Lynch High Yield Master Constrained II Index.

Market Environment  4 During the second half of 2008, investor risk aversion intensified to risk avoidance as deleveraging, ongoing housing market woes, tight credit conditions and a rapidly weakening labor market prompted a strong flight to quality. In September, Lehman Brothers filed for bankruptcy, AIG was rescued by the Federal Reserve, and Bank of America purchased Merrill Lynch with help from the U.S. Treasury. The Fed and Treasury moved aggressively and creatively to stabilize the markets through a series of actions including significant federal funds rate cuts, placing Fannie Mae and Freddie Mac into conservatorship, and committing funds to buy Agency mortgage-backed securities and Agency debt. Treasury yields fell through the end of 2008, with some investors willing to purchase Treasury bills at 0% yields, while other sectors posted their worst year on record. High yield credit spreads ended 2008 at 1,810 basis points.

The bank loan and high yield market rebounded strongly so far in 2009, with year-to-date returns of 40.68% and 35.33%, respectively. The furious rally began in early March and has continued with little abatement, spurred by reduced fears of systemic bank failures and signs of slowing economic headwinds. In our view, the most important drivers of calendar year 2009’s returns were the realization that values were exceedingly cheap. This year, the market has enjoyed significant cash inflows as managers rushed to invest in a rising market. With a much improved liquidity situation, managers bought disproportionately lower-quality, higher-risk assets that were priced at levels often below recovery value in bankruptcy scenarios. The lack of risk aversion resulted in massive outperformance by lower rated issues with CCC-rated bonds rising a whopping 73% year-to-date.

The fund’s relative performance was largely attributable to its more conservative quality allocation with less exposure to the most consumer-sensitive, housing-related and highly leveraged companies. The fund outperformed late in 2008 and early in 2009 as high yield spreads widened violently. With the more recent strong rebound in the high yield market, the fund has underperformed during the rally due to the portfolio’s lower risk posture and in particular the fund’s underweight to CCC-rated securities.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
U.S. High Yield Bond Class 1 (began 10/15/05)		6.40	%	—	—	5.17	%		6.40	%	—	—	21.61	%
U.S. High Yield Bond Class NAV (began 10/15/05)		6.46	%	—	—	5.23	%		6.46	%	—	—	21.87	%
Merrill Lynch U.S. High Yield Master II Constrained Index2,3,4		6.43	%	—	—	4.53	%		6.43	%	—	—	18.97	%

 

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  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.

4  It is not possible to invest directly in an index.

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 net expenses equal the gross expenses and are as follows: Class 1 – 0.82% and Class NAV – 0.77%.

58

U.S. Multi Sector Fund
Subadviser: Grantham, Mayo, Van Otterloo & Co. LLC
Portfolio Manager: Sam Wilderman

INVESTMENT OBJECTIVE & POLICIES  4 The Fund seeks long-term capital appreciation, 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	39.80
Technology	12.56
Communications	11.47
Consumer, Cyclical	10.59
Energy	9.84
Financial	3.19
Industrial	2.39
Basic Materials	1.79
Utilities	0.30

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGER’S COMMENTARY

Performance  4 For the year ended August 31, 2009, the U.S. Multi Sector Class NAV returned –12.22%, compared to the –18.62% return of the Russell 3000 Index.

Market Environment  4 The U.S. market underwent a historic plunge followed by an impressive rally as a financial crisis and economic downturn rocked the global equity markets. After a decline punctuated by the collapse or near-collapse of numerous financial institutions, the U.S. market stabilized enough in the second half of the period to stage a strong rally, but it wasn’t enough to put the period as a whole into the black.

Consumer Staples and Information Technology provided the best relative returns while Energy, Industrials, and Financials were the weakest sectors. Sector weightings adding to relative returns included overweights in Consumer Staples and Health Care and an underweight in Industrials. An underweight in Consumer Discretionary detracted from relative returns. Stock selection in Energy and Industrials added to performance while picks in Financials detracted.

Throughout the period, high-quality companies represented a compelling valuation opportunity and our portfolio was heavily overweight this group. This led to outsized gains early on, as massive equity market declines following the financial crisis and economic slowdown left quality companies as big relative winners. As risky assets rallied late in the period, however, quality stocks gave up some gains but remained positive for the overall period.

The fund uses futures on occasion to manage equity exposure from cash flows. This did not have a material impact on performance.

Energy added most to relative returns, as strong stock selection boosted the fund’s returns. While most energy firms had a volatile ride over the past 12 months, the portfolio added value by selecting high quality energy companies less dependent on skyrocketing oil prices. An underweight position and good stock selection within Industrials also added to relative returns. The Consumer Staples sector added to performance, largely from an overweight position, as investors fled to safety during the financial crisis.

However, being underweight Consumer Discretionary hindered the portfolio’s relative returns in the second half of the period, as investors bid up shares in more cyclical companies. With the shift in sentiment, the market shunned safer companies in search of riskier plays. The story was similar in the Financial sector. While the portfolio benefited by being underweight Financials during the credit crisis, that hurt relative returns later on as many “survivor” financial firms rallied off their lows.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
U.S. Multi Sector Class NAV (began 10/29/05)		–12.22	%	—	—	–2.73	%		–12.22	%	—	—	–10.11	%
Russell 3000 Index2,3,4		–18.62	%	—	—	–1.93	%		–18.62	%	—	—	–7.22	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.80%.

59

Value Fund
Subadviser: Morgan Stanley Investment Management, Inc.
Portfolio Managers: Tom Copper, John Mazanec, Thomas Bastian, Mark Laskin, James Roeder and Sergio Marcheli

INVESTMENT OBJECTIVE & POLICIES  4 To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risks, 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	21.94
Consumer, Non-cyclical	19.37
Industrial	15.85
Technology	10.11
Consumer, Cyclical	8.52
Utilities	5.77
Energy	5.37
Basic Materials	3.33

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Value Class NAV returned –17.56%, compared to the –20.00% return of the Russell Midcap Value Index.

Market Environment  4 Early in the 12-month period ended August 31, 2009, the market faced downward pressure from increasing evidence of recession, an unstable financial system and a lack of confidence in the policy measures enacted at the time to contain the crisis. However, in March, improving news on the economic, corporate and policy fronts led the market to rally. The rate of decline slowed in some economic indicators, merger and acquisition activity resumed, and investors gained confidence in recovery plans announced by the U.S. Treasury and Federal Reserve. Although the market’s appreciation slowed in June, the rally resumed in July and August as most economic indicators continued to stabilize (with employment rates the notable exception) and second quarter corporate earnings beat expectations.

The fund’s relative performance was driven by the Financials sector, where both stock selection and an underweight allocation were additive. The fund’s avoidance of regional banks, which were among the hardest hit by the credit crisis, and emphasis on less credit-sensitive banks and insurance companies, served the portfolio well. Stock selection in the Industrials sector also boosted relative gains, as holdings in an aerospace and defense company, a commercial and professional services firm, and a capital goods company performed well, particularly in the second half of the period. Finally, the fund’s underweight allocation to Utilities helped reduce the impact of the sector’s negative return.

However, stock selection in Health Care hurt relative performance. A health care services stock underperformed as reduced Medicare spending hurt both the hospital and rehabilitation services segments of its business. Declining demand for assisted living facilities also dampened the stock as affordability became an issue for retirees in the recession. The Consumer Staples sector hampered relative performance due to stock selection and a slight underweight. A holding in a cosmetics and skin care company lagged amid sluggish consumer demand in the U.S. and internationally. Stock selection in Technology was the third largest detractor. A holding in an automatic teller machine (ATM) manufacturer was hurt by banks’ more conservative growth plans and reduced spending.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Value Class NAV (began 10/27/06)		–17.56	%	—	—	–5.76	%		–17.56	%	—	—	–15.54	%
Russell Midcap Value Index2,3,4		–20.00	%	—	—	–9.15	%		–20.00	%	—	—	–23.89	%

 

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  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.

4  It is not possible to invest directly in an index.

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 until at least December 31, 2009. For Class NAV, the net expense is 0.99%. Had the fee waivers and expense limitations not been in place, the gross expense would be 1.08%.

60

Value & Restructuring Fund
Subadviser: Columbia Management Advisors LLC
Portfolio Managers: David J. Williams, Guy Pope and Nicholas Smith

INVESTMENT OBJECTIVE & POLICIES  4 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 believed to benefit from restructuring efforts or industry consolidation.

CHANGE IN VALUE OF $10,000 INVESTMENT AND COMPARATIVE INDICES

 

Sector Weighting*	% of Total
Energy	22.50
Financial	16.26
Industrial	13.93
Consumer, Non-cyclical	12.97
Basic Materials	11.90
Communications	9.27
Consumer, Cyclical	3.89
Technology	2.83
Utilities	0.66

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Value & Restructuring Class NAV returned –26.21%, compared to the –18.25% return of the S&P 500 Index.

Market Environment  4 The past year featured significant market volatility, as the first six months were marred by a credit crisis, followed by an equally stunning rally starting in March 2009. Historically, the portfolio has faired poorly during recessions, as market headwinds make restructuring companies unattractive during a flight to quality, but the fund has performed well as markets recover. This year followed that pattern: Performance lagged until March, after which the portfolio regained significant ground against its benchmark.

In response to the market maelstrom, the fund reduced its number of holdings and added to the better quality companies in the portfolio. The damage to low-quality financial stocks was particularly devastating, as the fund failed to sell them fast enough, although solid performance from several investment banks helped as markets rebounded.

As is typical following momentous rallies, uncertainty about the sustainability of the rally pervades the market. We believe that this period is usually followed by further gains, as the economic recovery eventually wins over the naysayers. Significant corporate cost cutting has already been accomplished, creating the potential for positive earnings surprises if revenue growth re-emerges.

We believe earnings growth and stock performance will be enhanced by exposure to emerging markets, either by direct investment or through U.S.-based companies with global markets in these countries. We foresee higher market values over time in these countries and, by extension, in the companies associated with them. Overweight positions in Energy and Materials reflect this view, as these sectors stand to benefit most from this growth.

The risk remains of a double-dip recession, which would be painful for the equity markets. Assuming continued recovery, however, the stock market should move higher, reflecting the enormous liquidity injections to the economy by the Federal Reserve and the attractiveness of stocks relative to other financial assets. We believe that the portfolio is particularly well positioned, given its emphasis on value and exposure to corporate restructuring.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Value & Restructuring Class NAV (began 10/29/05)		–26.21	%	—	—	–2.33	%		–26.21	%	—	—	–8.69	%
S&P 500 Index2,3,4		–18.25	%	—	—	–2.01	%		–18.25	%	—	—	–7.53	%

 

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  Since inception returns for the indices may begin on the month-end closest to the actual inception date of the fund.

3  S&P 500 Index is an unmanaged index that includes 500 widely traded common stocks.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.86%.

61

Vista Fund
Subadviser: American Century Investment Management, Inc.
Portfolio Manager: Bradley J. Eixmann

INVESTMENT OBJECTIVE & POLICIES  4 To seek long-term capital growth by investing primarily 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, Cyclical	18.07
Technology	15.89
Consumer, Non-cyclical	11.77
Financial	11.27
Communications	10.71
Industrial	10.25
Energy	8.26
Basic Materials	5.25

*   Top Sectors as a percentage of market value. Does not include short-term securities and investments in the John Hancock Collateral
Investment Trust, if applicable.

PORTFOLIO MANAGERS’ COMMENTARY

Performance  4 For the year ended August 31, 2009, the Vista Class NAV returned –33.26%, compared to the –20.21% return of the Russell Midcap Growth Index.

Market Environment  4 U.S. stock indexes fell during the reporting period amid a volatile market climate, ongoing credit crisis, and economic recession. For the reporting period, mid-cap stocks modestly outperformed small-cap stocks, but underperformed their large-cap counterparts. Among mid-cap stocks, performance between growth and value shares was nearly equal, as evidenced by the Russell Midcap Growth Index’s –20.21% decline, compared with –20.00% for the Russell Midcap Value Index.

The fund’s holdings in the Industrials sector accounted for the bulk of the portfolio’s underperformance relative to its benchmark. Within the sector, the portfolio held an overweight position in the electrical equipment industry, where we focused on companies involved with alternative energy. In this industry group, we have held companies that have been some of the largest beneficiaries of increasing demand. During the period, though, these holdings collectively declined as energy prices fell.

Stock selection in the Consumer Discretionary and Financials sectors also hurt relative performance. In the Consumer Discretionary sector, an overweight allocation to the specialty retail industry group reflected a focus on automotive parts retailers. Holdings in the group generally delivered weaker returns for the time they were held in the portfolio than for the entire reporting period, leading to underperformance relative to the benchmark. In the Financials sector, a detrimental overweight in the insurance industry hurt relative returns. These companies underperformed as investors appeared willing to move to more aggressive industry groups within the sector.

The portfolio held a substantial underweight in the Utilities sector during the reporting period, completely avoiding electric utilities, independent power producers, and gas utilities. This allocation benefited relative performance, as these industry groups experienced meaningful declines during the period.

The portfolio utilized exchange-traded funds (ETFs), including iShares Russell 2000 Index Fund, S&P 400 Mid Cap Depository Receipts, and Power Shares QQQ Trust in order to gain modest exposure to certain markets without holding actual securities in those areas. Because the ETFs purchased were not significant in their weighting, were similar to the fund’s investment mandate and were broadly diversified, they did not materially change the fund’s risk level.

PERFORMANCE TABLE1	Average Annual Total Return							Cumulative Total Return
Period Ended August 31, 2009		1-year		5-year	10-year	Since inception			1-year		5-year	10-year	Since inception
Vista Class NAV (began 10/29/05)		–33.26	%	—	—	–2.70	%		–33.26	%	—	—	–10.00	%
Russell Midcap Growth Index2,3,4		–20.21	%	—	—	–1.31	%		–20.21	%	—	—	–4.97	%

 

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  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.

4  It is not possible to invest directly in an index.

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. For Class NAV, the net expense equals the gross expense and is 0.98%.

62

John Hancock Funds II
Shareholder Expense Examples

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 Alternative Asset Allocation Fund, American Diversified Growth & Income Portfolio, American Fundamental Holdings Portfolio and American Global Diversification Portfolio, 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, 2009 through August 31, 2009).

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 3/1/2009		Ending Account Value 8/31/2009		Expenses Paid During Period1 3/1/2009– 8/31/2009		Annualized Expense Ratio2
Active Bond Fund
Class 1 — Actual	$	1,000.00	$	1,162.50	$	3.82		0.70	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.70		3.57		0.70	%
Class NAV — Actual		1,000.00		1,162.80		3.54		0.65	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.90		3.31		0.65	%
All Cap Core Fund
Class NAV — Actual	$	1,000.00	$	1,416.50	$	5.12		0.84	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.28		0.84	%
All Cap Growth Fund
Class 1 — Actual	$	1,000.00	$	1,262.50	$	5.87		1.03	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.00		5.24		1.03	%
All Cap Value Fund
Class 1 — Actual	$	1,000.00	$	1,335.30	$	5.65		0.96	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.40		4.89		0.96	%
Class NAV — Actual		1,000.00		1,335.30		5.36		0.91	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.60		4.63		0.91	%
Alpha Opportunities Fund
Class NAV — Actual	$	1,000.00	$	1,435.90	$	6.75		1.10	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.70		5.60		1.10	%

63

John Hancock Funds II
Shareholder Expense Examples

	Beginning Account Value 3/1/2009		Ending Account Value 8/31/2009		Expenses Paid During Period1 3/1/2009– 8/31/2009		Annualized Expense Ratio2
Alternative Asset Allocation Fund
Class A — Actual	$	1,000.00	$	1,411.90	$	3.28		0.54	%
Class A — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.75		0.54	%
American Diversified Growth & Income Portfolio
Class 1 — Actual	$	1,000.00	$	1,334.40	$	0.35		0.06	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,024.90		0.31		0.06	%
American Fundamental Holdings Portfolio
Class 1 — Actual	$	1,000.00	$	1,289.70	$	0.35		0.06	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,024.90		0.31		0.06	%
American Global Diversification Portfolio
Class 1 — Actual	$	1,000.00	$	1,388.60	$	0.36		0.06	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,024.90		0.31		0.06	%
Blue Chip Growth Fund
Class 1 — Actual	$	1,000.00	$	1,384.20	$	5.17		0.86	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.38		0.86	%
Class NAV — Actual		1,000.00		1,384.50		4.87		0.81	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.10		4.13		0.81	%
Capital Appreciation Fund
Class 1 — Actual	$	1,000.00	$	1,337.40	$	4.77		0.81	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.10		4.13		0.81	%
Class NAV — Actual		1,000.00		1,338.90		4.48		0.76	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.40		3.87		0.76	%
Core Bond Fund
Class 1 — Actual	$	1,000.00	$	1,084.40	$	3.84		0.73	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.50		3.72		0.73	%
Class NAV — Actual		1,000.00		1,084.00		3.41		0.65	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.90		3.31		0.65	%
Emerging Markets Value Fund
Class NAV — Actual	$	1,000.00	$	2,020.00	$	8.07		1.06	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.90		5.40		1.06	%
Emerging Small Company Fund
Class 1 — Actual	$	1,000.00	$	1,443.90	$	8.69		1.41	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,018.10		7.17		1.41	%
Equity-Income Fund
Class 1 — Actual	$	1,000.00	$	1,507.60	$	5.56		0.88	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.80		4.48		0.88	%
Class NAV — Actual		1,000.00		1,507.00		5.24		0.83	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.23		0.83	%
Fundamental Value Fund
Class 1 — Actual	$	1,000.00	$	1,489.70	$	5.40		0.86	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.38		0.86	%
Class NAV — Actual		1,000.00		1,489.70		5.08		0.81	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.10		4.13		0.81	%
Global Agribusiness Fund
Class A — Actual	$	1,000.00	$	1,205.40	$	8.06		1.45	%
Class A — Hypothetical (5% annualized return before expenses)		1,000.00		1,017.90		7.38		1.45	%
Class I — Actual		1,000.00		1,207.60		5.56		1.00	%
Class I — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.20		5.09		1.00	%
Global Bond Fund
Class 1 — Actual	$	1,000.00	$	1,185.30	$	4.52		0.82	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.10		4.18		0.82	%
Class NAV — Actual		1,000.00		1,185.60		4.19		0.76	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.40		3.87		0.76	%

64

John Hancock Funds II
Shareholder Expense Examples

	Beginning Account Value 3/1/2009		Ending Account Value 8/31/2009		Expenses Paid During Period1 3/1/2009– 8/31/2009		Annualized Expense Ratio2
Global Infrastructure Fund
Class A — Actual	$	1,000.00	$	1,288.40	$	8.36		1.45	%
Class A — Hypothetical (5% annualized return before expenses)		1,000.00		1,017.90		7.38		1.45	%
Class I — Actual		1,000.00		1,290.70		5.77		1.00	%
Class I — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.20		5.09		1.00	%
Global Real Estate Fund
Class NAV — Actual	$	1,000.00	$	1,629.20	$	7.36		1.11	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.60		5.65		1.11	%
Global Timber Fund
Class A — Actual	$	1,000.00	$	1,139.80	$	7.82		1.45	%
Class A — Hypothetical (5% annualized return before expenses)		1,000.00		1,017.90		7.38		1.45	%
Class I — Actual		1,000.00		1,143.10		5.40		1.00	%
Class I — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.20		5.09		1.00	%
High Income Fund
Class NAV — Actual	$	1,000.00	$	1,536.20	$	4.60		0.72	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.67		0.72	%
High Yield Fund
Class 1 — Actual	$	1,000.00	$	1,408.60	$	4.55		0.75	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.40		3.82		0.75	%
Class NAV — Actual		1,000.00		1,407.70		4.25		0.70	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.70		3.57		0.70	%
Index 500 Fund
Class NAV — Actual	$	1,000.00	$	1,400.00	$	3.02		0.50	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.70		2.55		0.50	%
International Equity Index Fund
Class NAV — Actual	$	1,000.00	$	1,582.70	$	3.84		0.59	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.20		3.01		0.59	%
International Opportunities Fund
Class 1 — Actual	$	1,000.00	$	1,499.40	$	6.17		0.98	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.30		4.99		0.98	%
Class NAV — Actual		1,000.00		1,500.00		5.86		0.93	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.74		0.93	%
International Small Cap Fund
Class 1 — Actual	$	1,000.00	$	1,745.70	$	7.96		1.15	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.80		5.85		1.15	%
Class NAV — Actual		1,000.00		1,744.30		7.26		1.05	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.70		5.35		1.05	%
International Small Company Fund
Class NAV — Actual	$	1,000.00	$	1,615.90	$	7.12		1.08	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.80		5.50		1.08	%
International Value Fund
Class 1 — Actual	$	1,000.00	$	1,576.50	$	5.71		0.88	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.80		4.48		0.88	%
Class NAV — Actual		1,000.00		1,576.60		5.46		0.84	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.28		0.84	%
Investment Quality Bond Fund
Class 1 — Actual	$	1,000.00	$	1,118.30	$	4.00		0.75	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.40		3.82		0.75	%
Class NAV — Actual		1,000.00		1,118.70		3.74		0.70	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.70		3.57		0.70	%
Large Cap Fund
Class 1 — Actual	$	1,000.00	$	1,454.00	$	5.38		0.87	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.80		4.43		0.87	%
Class NAV — Actual		1,000.00		1,454.00		5.07		0.82	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.10		4.18		0.82	%

65

John Hancock Funds II
Shareholder Expense Examples

	Beginning Account Value 3/1/2009		Ending Account Value 8/31/2009		Expenses Paid During Period1 3/1/2009– 8/31/2009		Annualized Expense Ratio2
Large Cap Value Fund
Class 1 — Actual	$	1,000.00	$	1,291.40	$	5.26		0.91	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.60		4.63		0.91	%
Class NAV — Actual		1,000.00		1,291.70		4.97		0.86	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.38		0.86	%
Mid Cap Index Fund
Class NAV — Actual	$	1,000.00	$	1,466.20	$	3.11		0.50	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.70		2.55		0.50	%
Mid Cap Stock Fund
Class 1 — Actual	$	1,000.00	$	1,340.20	$	5.54		0.94	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.79		0.94	%
Class NAV — Actual		1,000.00		1,340.90		5.25		0.89	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.70		4.53		0.89	%
Mid Cap Value Equity Fund
Class NAV — Actual	$	1,000.00	$	1,515.40	$	5.58		0.88	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.80		4.48		0.88	%
Mid Value Fund
Class NAV — Actual	$	1,000.00	$	1,547.20	$	6.68		1.04	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.00		5.30		1.04	%
Natural Resources Fund
Class 1 — Actual	$	1,000.00	$	1,463.10	$	6.77		1.09	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.70		5.55		1.09	%
Class NAV — Actual		1,000.00		1,463.70		6.46		1.04	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.00		5.30		1.04	%
Real Estate Equity Fund
Class NAV — Actual	$	1,000.00	$	1,748.40	$	6.23		0.90	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.70		4.58		0.90	%
Real Estate Securities Fund
Class 1 — Actual	$	1,000.00	$	1,693.20	$	5.36		0.79	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.20		4.02		0.79	%
Real Return Bond Fund
Class 1 — Actual	$	1,000.00	$	1,129.30	$	4.08		0.76	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.40		3.87		0.76	%
Class NAV — Actual		1,000.00		1,129.70		3.81		0.71	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.60		3.62		0.71	%
Short Term Government Income Fund
Class NAV — Actual	$	1,000.00	$	1,015.00	$	2.74		0.54	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.75		0.54	%
Small Cap Growth Fund
Class NAV — Actual	$	1,000.00	$	1,415.50	$	7.25		1.19	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.20		6.06		1.19	%
Small Cap Index Fund
Class NAV — Actual	$	1,000.00	$	1,476.80	$	3.43		0.55	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.40		2.80		0.55	%
Small Cap Opportunities Fund
Class 1 — Actual	$	1,000.00	$	1,577.10	$	7.86		1.21	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.10		6.16		1.21	%
Class NAV — Actual		1,000.00		1,578.00		7.47		1.15	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.40		5.85		1.15	%
Small Cap Value Fund
Class NAV — Actual	$	1,000.00	$	1,524.40	$	8.02		1.26	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,018.90		6.41		1.26	%
Small Company Growth Fund
Class NAV — Actual	$	1,000.00	$	1,396.50	$	6.83		1.13	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.50		5.75		1.13	%

66

John Hancock Funds II
Shareholder Expense Examples

	Beginning Account Value 3/1/2009		Ending Account Value 8/31/2009		Expenses Paid During Period1 3/1/2009– 8/31/2009		Annualized Expense Ratio2
Small Company Value Fund
Class 1 — Actual	$	1,000.00	$	1,477.50	$	6.87		1.10	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.70		5.60		1.10	%
Class NAV — Actual		1,000.00		1,477.10		6.49		1.04	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.00		5.30		1.04	%
Smaller Company Growth Fund
Class NAV — Actual	$	1,000.00	$	1,410.30	$	7.53		1.24	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,019.00		6.31		1.24	%
Spectrum Income Fund
Class NAV — Actual	$	1,000.00	$	1,208.50	$	4.40		0.79	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.20		4.02		0.79	%
Strategic Bond Fund
Class 1 — Actual	$	1,000.00	$	1,199.80	$	4.32		0.78	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.30		3.97		0.78	%
Class NAV — Actual		1,000.00		1,199.40		4.05		0.73	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.50		3.72		0.73	%
Strategic Income Fund
Class NAV — Actual	$	1,000.00	$	1,209.30	$	5.01		0.90	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.70		4.58		0.90	%
Total Bond Market Fund
Class NAV — Actual	$	1,000.00	$	1,049.20	$	2.79		0.54	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,022.50		2.75		0.54	%
Total Return Fund
Class 1 — Actual	$	1,000.00	$	1,155.20	$	4.24		0.78	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.30		3.97		0.78	%
Class NAV — Actual		1,000.00		1,155.80		3.97		0.73	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.50		3.72		0.73	%
U.S. Government Securities Fund
Class 1 — Actual	$	1,000.00	$	1,061.50	$	3.90		0.75	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.40		3.82		0.75	%
Class NAV — Actual		1,000.00		1,061.90		3.64		0.70	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.70		3.57		0.70	%
U.S. High Yield Bond Fund
Class 1 — Actual	$	1,000.00	$	1,269.90	$	4.75		0.83	%
Class 1 — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.23		0.83	%
Class NAV — Actual		1,000.00		1,271.50		4.47		0.78	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.30		3.97		0.78	%
U.S. Multi Sector Fund
Class NAV — Actual	$	1,000.00	$	1,281.10	$	4.48		0.78	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.30		3.97		0.78	%
Value Fund
Class NAV — Actual	$	1,000.00	$	1,505.80	$	5.24		0.83	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,021.00		4.23		0.83	%
Value & Restructuring Fund
Class NAV — Actual	$	1,000.00	$	1,513.90	$	5.45		0.86	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.90		4.38		0.86	%
Vista Fund
Class NAV — Actual	$	1,000.00	$	1,221.00	$	5.26		0.94	%
Class NAV — Hypothetical (5% annualized return before expenses)		1,000.00		1,020.50		4.79		0.94	%

 

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 365 (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:

67

John Hancock Funds II
Shareholder Expense Examples

Fund	Range
Alternative Asset Allocation Fund	0.71% – 1.18	%
American Diversified Growth & Income Portfolio	0.37% – 0.79	%
American Fundamental Holdings Portfolio	0.37% – 0.51	%
American Global Diversification Portfolio	0.37% – 0.79	%

 

68

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund
			Shares or
			Principal
			Amount		Value
U.S. TREASURY OBLIGATIONS - 3.41%
U.S. Treasury Bonds - 0.77%
3.50% due 02/15/2039		$	1,000,000	$	844,323
4.25% due 05/15/2039			3,340,000		3,377,054
3.625% due 08/15/2019			190,000		193,562
					4,414,939
U.S. Treasury Notes - 2.64%
1.375% due 04/15/2012			7,620,000		7,632,504
2.375% due 08/31/2014			440,000		439,708
2.625% due 06/30/2014 to 07/31/2014			5,360,000		5,427,893
3.75% due 11/15/2018			780,000		800,963
4.25% due 08/15/2015.			775,000		840,148
					15,141,216
TOTAL U.S. TREASURY OBLIGATIONS (Cost $19,347,285)				$	19,556,155
U.S. GOVERNMENT AGENCY OBLIGATIONS - 21.66%
Federal Farm Credit Bank - 0.13%
2.625% due 04/17/2014			765,000		762,196
Federal Home Loan Mortgage Corp. - 0.75%
4.50% due 04/01/2039			1,741,944		1,751,266
5.697% due 04/01/2037			627,766		661,093
5.863% due 03/01/2037 (b)			1,775,625		1,873,771
					4,286,130
Federal National Mortgage
Association - 20.14%
zero coupon due 02/01/2015			390,000		298,601
3.587% due 05/01/2035 (b)			2,218,948		2,277,186
4.00% due 06/01/2024 to 07/01/2024			11,502,258		11,629,862
4.127% due 07/01/2033 (b)			2,001		2,076
4.375% due 03/15/2013			20,000		21,633
4.50% TBA **			6,000,000		6,168,750
4.897% due 12/01/2038 (b)			771,479		805,981
5.00% due 05/01/2018 to 05/01/2038			25,865,958		26,754,395
5.317% due 12/01/2038 (b)			997,561		1,049,614
5.328% due 12/01/2038 (b)			538,259		562,367
5.50% due 02/01/2018 to 05/01/2037			39,396,584		41,260,023
5.557% due 01/01/2036 (b)			1,174,317		1,230,549
5.75% due 04/01/2036 (b)			867,293		915,922
6.00% due 09/01/2022 to 02/01/2036			17,813,740		18,903,187
6.00% TBA **			3,000,000		3,156,094
6.25% due 05/15/2029			157,000		188,009
6.50% due 02/01/2036			56,866		61,082
7.00% due 09/01/2010 to 10/25/2041			49,912		53,377
7.50% due 09/01/2029 to 08/01/2031			4,473		4,910
					115,343,618
Government National Mortgage
Association - 0.64%
4.50% due 04/15/2039			3,430,839		3,466,488
5.00% due 04/15/2035			81,697		84,623
5.50% due 03/15/2035			85,379		89,741
6.00% due 03/15/2033 to 06/15/2033			34,163		36,479
6.50% due 09/15/2028 to 08/15/2031			5,929		6,434
7.00% due 04/15/2029			2,292		2,501
U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Government National Mortgage
Association (continued)
8.00% due 10/15/2026		$	2,094	$	2,313
					3,688,579
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $119,555,704)				$	124,080,523
FOREIGN GOVERNMENT OBLIGATIONS - 0.20%
Argentina - 0.01%
Republic of Argentina
0.63% due 12/31/2038 (b)	ARS		177,218		12,887
1.00% due 12/15/2035 (b)			393,449		5,058
5.83% due 12/31/2033 (b)			72,870		14,856
					32,801
Brazil - 0.13%
Federative Republic of Brazil
10.25% due 01/10/2028	BRL		1,455,000		764,286
Canada - 0.00%
Government of Canada
5.50% due 06/01/2010	CAD		5,000		4,742
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		3,990
					27,190
Japan - 0.01%
Government of Japan
1.50% due 09/20/2014	JPY		1,350,000		15,121
1.80% due 03/22/2010			2,650,000		28,735
					43,856
Mexico - 0.04%
Government of Mexico
8.00% due 12/07/2023	MXN		238,900		17,163
8.00% due 12/19/2013			167,800		12,882
9.875% due 02/01/2010		$	205,000		212,380
					242,425
Panama - 0.00%
Republic of Panama
8.875% due 09/30/2027			6,000		7,410
9.375% due 04/01/2029			1,000		1,280
					8,690
Peru - 0.00%
Republic of Peru
9.875% due 02/06/2015			2,000		2,475
Philippines - 0.00%
Republic of Philippines
9.125% due 02/22/2010	EUR		2,000		2,953
Sweden - 0.00%
Kingdom of Sweden
5.25% due 03/15/2011	SEK		30,000		4,486
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $1,182,183)				$	1,133,904

The accompanying notes are an integral part of the financial statements.

69

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
			Shares or
			Principal
			Amount		Value
CORPORATE BONDS - 51.84%
Advertising - 0.01%
R.H. Donnelley Corp.
8.875% due 10/15/2017 ^		$	560,000	$	32,900
Aerospace - 0.05%
BAE Systems Asset Trust
6.664% due 09/15/2013 (f)			30,694		30,164
BE Aerospace, Inc.
8.50% due 07/01/2018			250,000		246,250
					276,414
Agriculture - 0.06%
Mosaic Company
7.625% due 12/01/2016 (f)			360,000		370,800
Air Travel - 0.31%
Continental Airlines, Inc., Series 981A
6.648% due 09/15/2017			159,596		137,252
Continental Airlines, Inc., Series 00-2
8.307% due 10/02/2019			162,234		123,298
Continental Airlines, Inc., Series 991A
6.545% due 02/02/2019			80,767		76,729
Delta Air Lines, Inc., Series 02-1
6.417% due 01/02/2014			515,000		468,650
Delta Airlines, Inc.
6.821% due 08/10/2022			490,197		433,824
Northwest Airlines, Inc., Series 07-1
7.027% due 11/01/2019			309,029		247,224
US Airways Group, Inc.
7.25% due 05/15/2014			290,000		279,125
					1,766,102
Aluminum - 0.09%
Alcoa, Inc.
5.72% due 02/23/2019			150,000		132,678
Rio Tinto Alcan, Inc.
6.125% due 12/15/2033			395,000		361,289
					493,967
Amusement & Theme Parks - 0.00%
HRP Myrtle Beach Operations LLC zero coupon due 04/01/2012 ^ (f)			140,000		14
Auto Parts - 0.17%
Allison Transmission, Inc.
11.00% due 11/01/2015 (f)			475,000		427,500
Delphi Corp.
6.197% due 11/15/2033 ^			2,000		3
Goodyear Tire & Rubber Company
8.625% due 12/01/2011			225,000		227,250
Tenneco Automotive, Inc.
8.625% due 11/15/2014			340,000		299,200
					953,953
Auto Services - 0.14%
ERAC USA Finance Company
6.375% due 10/15/2017 (f)			320,000		313,280
7.95% due 12/15/2009 (f)			10,000		10,079
United Rentals North America, Inc.
7.00% due 02/15/2014			395,000		319,950
10.875% due 06/15/2016 (f)			130,000		132,600
					775,909
Banking - 3.00%
BAC Capital Trust XIII
1.0294% due 03/15/2043 (b)		$	640,000	$	309,658
BAC Capital Trust XIV
5.63% until 03/15/2012, then variable due 12/31/2049			275,000		170,500
BAC Capital Trust XV
1.4675% due 06/01/2056 (b)			925,000		458,933
Banco Santander Chile
0.9825% due 12/09/2009 (b)(f)			18,000		17,945
5.375% due 12/09/2014 (f)			5,000		5,079
Bank of America Corp.
5.65% due 05/01/2018			565,000		546,323
5.75% due 12/01/2017			2,470,000		2,402,668
7.625% due 06/01/2019			3,115,000		3,429,634
Bank of Ireland
6.45% due 02/10/2010	EUR		1,000		1,453
Chuo Mitsui Trust & Banking Company
5.506% until 04/15/2015, then variable due 12/29/2049 (f)		$	500,000		418,125
Comerica Capital Trust II
6.576% until 02/20/2032, then variable due 02/20/2037			1,000,000		675,000
Groupe BPCE
12.50% until 09/30/2019, then variable due 06/29/2049 (f)			255,000		283,050
HBOS PLC
5.375% until 11/01/2013, then variable due 11/29/2049 (f)			22,000		12,760
HSBC Holdings PLC
6.50% due 09/15/2037			435,000		449,874
Independence Community Bank Corp.
2.4169% due 04/01/2014 (b)			85,000		75,096
Lloyds TSB Group PLC
6.267% until 11/14/2016, then variable due 11/29/2049 (f)			545,000		218,000
6.413% until 10/01/2035, then variable due 09/29/2049 (f)			450,000		193,500
Mellon Capital IV, Series 1
6.244% until 06/20/2012, then variable due 06/29/2049			400,000		292,000
Northern Trust Company
6.50% due 08/15/2018			190,000		210,658
Northern Trust Corp.
4.625% due 05/01/2014			410,000		435,342
Rabobank Nederland
11.00% until 06/30/2019, then variable due 12/29/2049 (f)			632,000		746,550
Royal Bank of Scotland Group PLC, MTN
7.64% until 09/29/2017, then variable due 03/29/2049			300,000		132,000
Shinhan Bank
6.819% until 09/20/2016, then variable due 09/20/2036			515,000		402,626
Silicon Valley Bank
6.05% due 06/01/2017			415,000		361,499
Standard Chartered PLC
6.409% until 01/30/2017, then variable due 01/30/2017 (f)			1,215,000		911,250
6.40% due 09/26/2017 (f)			1,000,000		972,349

The accompanying notes are an integral part of the financial statements.

70

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
SunTrust Capital VIII
6.10% until 12/15/2036, then variable due 12/01/2066	$	414,000	$	273,240
SunTrust Preferred Capital I
5.853% until 12/15/2011, then variable due 12/31/2049		102,000		61,327
TuranAlem Finance BV
7.875% due 06/02/2010 ^		12,000		1,920
UBS AG/Stamford Branch, Series DPNT
5.875% due 12/20/2017		550,000		544,963
USB Capital IX
6.189% until 04/15/2011, then variable due 10/29/2049		2,025,000		1,458,000
Wachovia Bank NA
5.85% due 02/01/2037		395,000		370,524
Wachovia Bank NA, BKNT
6.60% due 01/15/2038		325,000		337,890
				17,179,736
Broadcasting - 0.41%
CSC Holdings, Inc.
7.875% due 02/15/2018		390,000		378,300
News America Holdings, Inc.
6.75% due 01/09/2038		2,000		2,028
6.90% due 03/01/2019 (f)		185,000		208,409
7.75% due 12/01/2045		9,000		9,426
8.25% due 08/10/2018		375,000		441,651
News America, Inc.
6.65% due 11/15/2037		865,000		889,519
Sirius XM Radio, Inc.
13.00% due 08/01/2014 (f)		360,000		342,000
XM Satellite Radio, Inc.
11.25% due 06/15/2013 (f)		100,000		103,750
				2,375,083
Building Materials & Construction - 0.33%
CRH America, Inc.
8.125% due 07/15/2018		425,000		457,006
Masco Corp.
5.85% due 03/15/2017		705,000		623,900
USG Corp.
6.30% due 11/15/2016		1,000,000		800,000
				1,880,906
Business Services - 0.20%
Science Applications International Corp.
5.50% due 07/01/2033		825,000		688,532
Xerox Corp.
6.75% due 02/01/2017		435,000		450,291
				1,138,823
Cable & Television - 1.44%
Charter Communications Holdings II LLC
10.25% due 10/01/2013 ^ (f)		312,000		326,430
Comcast Corp.
6.50% due 01/15/2015		300,000		332,220
COX Communications, Inc.
4.625% due 01/15/2010		22,000		22,245
5.45% due 12/15/2014		218,000		231,491
6.75% due 03/15/2011		209,000		221,808
7.75% due 11/01/2010		207,000		220,148
COX Communications, Inc., Class A
4.625% due 06/01/2013	$	340,000	$	350,390
Rogers Cable, Inc.
6.75% due 03/15/2015		300,000		336,474
TCI Communications, Inc.
9.80% due 02/01/2012		730,000		826,607
Time Warner Cable, Inc.
6.55% due 05/01/2037		550,000		578,713
6.75% due 07/01/2018		1,185,000		1,309,092
8.75% due 02/14/2019		295,000		363,151
Time Warner Companies, Inc.
7.57% due 02/01/2024		34,000		35,789
Time Warner Entertainment Company LP
8.375% due 07/15/2033		535,000		644,290
8.375% due 03/15/2023		335,000		390,265
Time Warner, Inc.
7.625% due 04/15/2031		9,000		9,883
Viacom, Inc.
6.625% due 05/15/2011		575,000		596,765
6.75% due 10/05/2037		630,000		659,887
6.875% due 04/30/2036		760,000		802,373
				8,258,021
Cellular Communications - 0.38%
America Movil SAB de CV
5.75% due 01/15/2015		305,000		317,230
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		211,000		228,900
8.75% due 03/01/2031		209,000		277,784
Digicel Group, Ltd.
8.875% due 01/15/2015 (f)		400,000		357,000
12.00% due 04/01/2014 (f)		305,000		323,300
NII Capital Corp.
10.00% due 08/15/2016 (f)		230,000		227,700
Rogers Wireless, Inc.
9.625% due 05/01/2011		8,000		8,883
Verizon Wireless Capital LLC
7.375% due 11/15/2013 (f)		360,000		412,658
				2,153,455
Chemicals - 0.23%
American Pacific Corp.
9.00% due 02/01/2015		425,000		383,562
Ecolab, Inc.
4.875% due 02/15/2015		265,000		275,762
Sterling Chemicals, Inc.
10.25% due 04/01/2015		305,000		289,750
The Dow Chemical Company
8.55% due 05/15/2019		350,000		381,239
				1,330,313
Chemicals-Diversified - 0.18%
Dow Chemical Company
5.70% due 05/15/2018		700,000		656,523
5.90% due 02/15/2015		360,000		359,362
				1,015,885
Coal - 0.02%
Arch Coal, Inc.
8.75% due 08/01/2016 (f)		100,000		100,000

The accompanying notes are an integral part of the financial statements.

71

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value
CORPORATE BONDS (continued)
Computers & Business Equipment - 0.34%
Cisco Systems, Inc.
5.50% due 02/22/2016	$	510,000	$	561,837
Computer Sciences Corp.
6.50% due 03/15/2018		965,000		1,040,211
Xerox Corp.
8.25% due 05/15/2014		300,000		337,817
				1,939,865
Containers & Glass - 0.17%
Bemis Company, Inc.
5.65% due 08/01/2014		160,000		167,731
6.80% due 08/01/2019		160,000		174,037
BWAY Corp.
10.00% due 04/15/2014 (f)		335,000		347,562
Graphic Packaging International Corp.
9.50% due 06/15/2017 (f)		125,000		128,125
Solo Cup Company
10.50% due 11/01/2013 (f)		85,000		89,250
US Corrugated, Inc.
10.00% due 06/12/2013		110,000		83,600
				990,305
Crude Petroleum & Natural Gas - 0.90%
Anadarko Petroleum Corp.
8.70% due 03/15/2019		500,000		588,943
Apache Corp.
5.625% due 01/15/2017		1,000,000		1,083,733
6.90% due 09/15/2018		455,000		537,168
EQT Corp.
8.125% due 06/01/2019		280,000		314,555
Marathon Oil Corp.
6.80% due 03/15/2032		760,000		833,567
Premcor Refining Group, Inc.
7.50% due 06/15/2015		4,000		4,091
Questar Market Resources, Inc.
6.80% due 03/01/2020		205,000		209,625
Suncor Energy, Inc.
6.10% due 06/01/2018		760,000		796,023
Transocean, Inc.
6.00% due 03/15/2018		750,000		798,832
				5,166,537
Domestic Oil - 0.45%
Devon Energy Corp.
5.625% due 01/15/2014		980,000		1,055,786
Devon Financing Corp.
6.875% due 09/30/2011		205,000		223,701
7.875% due 09/30/2031		1,060,000		1,305,851
				2,585,338
Drugs & Health Care - 0.04%
Allegiance Corp.
7.00% due 10/15/2026		205,000		207,224
Electrical Utilities - 4.54%
AES Eastern Energy LP, Series 99-A
9.00% due 01/02/2017		576,824		553,751
AES Gener SA
7.50% due 03/25/2014		218,000		231,581
American Electric Power Company, Inc.
5.25% due 06/01/2015		210,000		216,914
Appalachian Power Company
5.80% due 10/01/2035	$	39,000	$	37,806
7.00% due 04/01/2038		425,000		480,567
Arizona Public Service Company
5.50% due 09/01/2035		222,000		186,219
Beaver Valley Funding Corp.
9.00% due 06/01/2017		1,123,000		1,146,909
CenterPoint Energy Houston Electric LLC, Series K2
6.95% due 03/15/2033		10,000		10,943
CenterPoint Energy Resources Corp.
7.875% due 04/01/2013		235,000		264,065
CenterPoint Energy Resources Corp., MTN
6.00% due 05/15/2018		1,000,000		1,009,943
CenterPoint Energy, Inc.
6.50% due 05/01/2018		1,000,000		983,622
Commonwealth Edison Company
5.80% due 03/15/2018		1,985,000		2,136,860
Constellation Energy Group, Inc.
7.60% due 04/01/2032		246,000		255,923
Delmarva Power & Light Company
6.40% due 12/01/2013		390,000		423,166
Dominion Resources, Inc.
7.50% until 06/30/2016, then variable
due 06/30/2066		320,000		262,400
6.30% until 09/30/2011, then variable
due 09/30/2066		800,000		584,000
5.00% due 03/15/2013		575,000		599,731
5.70% due 09/17/2012		207,000		225,150
DTE Energy Company
7.625% due 05/15/2014		335,000		362,797
Enel Finance International SA
6.25% due 09/15/2017 (f)		565,000		619,027
Enersis SA
7.375% due 01/15/2014		12,000		13,228
Entergy Louisiana LLC
8.09% due 01/02/2017		450,375		467,953
FirstEnergy Corp.
6.45% due 11/15/2011		209,000		223,629
7.375% due 11/15/2031		676,000		746,267
FirstEnergy Solutions Corp.
4.80% due 02/15/2015 (f)		360,000		367,953
Indiantown Cogeneration LP, Series A-9
9.26% due 12/15/2010		39,676		39,061
Ipalco Enterprises, Inc.
8.625% due 11/14/2011		365,000		372,300
Israel Electric Corp., Ltd.
7.25% due 01/15/2019 (f)		1,720,000		1,815,303
ITC Holdings Corp.
5.875% due 09/30/2016 (f)		170,000		172,682
Midwest Generation LLC, Series B
8.56% due 01/02/2016		584,360		578,517
Monongahela Power Company
7.95% due 12/15/2013 (f)		665,000		722,647
National Grid PLC
6.30% due 08/01/2016		485,000		524,346
Nevada Power Company
5.875% due 01/15/2015		340,000		362,216
6.65% due 04/01/2036		530,000		569,246

The accompanying notes are an integral part of the financial statements.

72

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
Oncor Electric Delivery Company
6.375% due 05/01/2012	$	850,000	$	925,628
Pacific Gas & Electric Company
4.20% due 03/01/2011		246,000		254,741
4.80% due 03/01/2014		212,000		225,273
8.25% due 10/15/2018		455,000		573,580
Peco Energy Company
5.35% due 03/01/2018		1,000,000		1,055,770
PG&E Corp.
5.75% due 04/01/2014		390,000		425,257
PNPP II Funding Corp.
9.12% due 05/30/2016		220,000		224,149
PSEG Power LLC
5.00% due 04/01/2014		214,000		222,501
8.625% due 04/15/2031		214,000		285,206
San Diego Gas & Electric Company, Series FFF
6.125% due 09/15/2037		1,000,000		1,138,261
Scottish Power PLC
4.91% due 03/15/2010		225,000		229,083
Sierra Pacific Power Company, Series M
6.00% due 05/15/2016		840,000		872,673
Southern Power Company, Series D
4.875% due 07/15/2015		295,000		299,265
Texas Competitive Electric Holdings Company LLC, Series A
10.25% due 11/01/2015		500,000		331,250
TransAlta Corp.
6.65% due 05/15/2018		580,000		581,783
United Energy Distribution Property, Ltd.
4.70% due 04/15/2011 (f)		96,000		99,045
Virginia Electric and Power Company
6.00% due 01/15/2036		620,000		676,185
				25,986,372
Energy - 1.06%
Duke Capital LLC
6.75% due 02/15/2032		511,000		489,687
Duke Energy Corp.
6.30% due 02/01/2014		335,000		369,563
Enterprise Products Operating LP
8.375% until 08/01/2016, then variable due 08/01/2066		700,000		607,250
7.034% until 01/15/2018, then variable due 01/15/2068		405,000		332,100
4.95% due 06/01/2010		210,000		213,482
6.30% due 09/15/2017		820,000		880,825
Enterprise Products Operating LP, Series B
5.60% due 10/15/2014 (f)		680,000		719,245
6.875% due 03/01/2033		209,000		233,867
Exide Technologies, Series B
10.50% due 03/15/2013		365,000		350,400
Nexen, Inc.
5.875% due 03/10/2035		212,000		186,447
6.40% due 05/15/2037		625,000		578,310
Salton Sea Funding Corp., Series F
7.475% due 11/30/2018		219,899		216,275
Sempra Energy
6.50% due 06/01/2016		450,000		494,923
Sempra Energy (continued)
8.90% due 11/15/2013	$	360,000	$	421,618
				6,093,992
Financial Services - 10.09%
Allied Capital Corp.
6.625% due 07/15/2011		255,000		172,659
American Express Bank FSB, BKNT
6.00% due 09/13/2017		805,000		794,331
American Express Company
7.00% due 03/19/2018		1,605,000		1,683,977
American Express Credit Corp., Series C
7.30% due 08/20/2013		585,000		641,217
American General Finance Corp.
6.90% due 12/15/2017		335,000		206,851
American Honda Finance Corp.
7.625% due 10/01/2018 (f)		615,000		691,188
Astoria Depositor Corp.
8.144% due 05/01/2021 (f)		600,000		420,000
AXA Financial, Inc.
7.75% due 08/01/2010		210,000		219,550
Bear Stearns Companies, Inc.
7.25% due 02/01/2018		380,000		433,338
Bear Stearns Companies, Inc., MTN
0.5619% due 11/28/2011 (b)		640,000		635,645
Bosphorus Financial Services, Ltd.
2.24% due 02/15/2012 (b)(f)		234,375		205,601
Bunge, Ltd. Finance Corp.
5.35% due 04/15/2014		430,000		441,107
5.875% due 05/15/2013		25,000		26,140
8.50% due 06/15/2019		220,000		248,151
Capital One Bank USA NA
8.80% due 07/15/2019		1,825,000		1,955,283
Capital One Financial Corp.
6.75% due 09/15/2017		550,000		552,067
7.375% due 05/23/2014		540,000		589,057
Capmark Financial Group, Inc.
7.875% due 05/10/2012		1,300,000		266,409
Caterpillar Financial Services Corp., MTN
5.45% due 04/15/2018		870,000		888,124
5.50% due 03/15/2016		405,000		415,850
7.15% due 02/15/2019		450,000		513,831
Charles Schwab Corp.
4.95% due 06/01/2014		365,000		383,978
Citigroup, Inc.
5.50% due 04/11/2013		2,375,000		2,363,954
5.625% due 08/27/2012		219,000		217,124
5.85% due 12/11/2034		285,000		229,569
6.125% due 11/21/2017		1,395,000		1,315,977
6.125% due 05/15/2018		1,540,000		1,447,979
6.375% due 08/12/2014		790,000		798,882
8.50% due 05/22/2019		1,030,000		1,125,870
CME Group, Inc.
5.75% due 02/15/2014		470,000		513,688
CNOOC Finance 2003, Ltd.
5.50% due 05/21/2033 (f)		10,000		10,007
Credit Suisse First Boston USA, Inc.
6.50% due 01/15/2012		209,000		226,521

The accompanying notes are an integral part of the financial statements.

73

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
		Shares or
		Principal
		Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Credit Suisse New York
5.30% due 08/13/2019	$	405,000	$	409,780
Discover Financial Services
10.25% due 07/15/2019		575,000		629,770
Dresdner Bank AG
7.25% due 09/15/2015		281,000		264,477
ESI Tractebel Acquisition Corp., Series B
7.99% due 12/30/2011		354,000		345,150
Ford Motor Credit Company LLC	��
7.50% due 08/01/2012		90,000		82,838
FPL Group Capital, Inc.
6.35% until 10/01/2016, then variable due 10/01/2066		650,000		552,500
General Electric Capital Corp.
5.45% due 01/15/2013		261,000		275,150
5.625% due 05/01/2018		455,000		453,073
5.875% due 01/14/2038		580,000		514,869
General Electric Capital Corp., Series GMTN
6.00% due 08/07/2019		325,000		327,463
Goldman Sachs Capital II
5.793% until 06/01/2012, then variable due 12/29/2049		760,000		547,200
Goldman Sachs Group, Inc.
5.125% due 01/15/2015		640,000		663,256
5.50% due 11/15/2014		447,000		468,043
5.95% due 01/18/2018		1,500,000		1,561,514
6.00% due 05/01/2014		645,000		695,441
6.75% due 10/01/2037		420,000		420,495
7.50% due 02/15/2019		930,000		1,070,704
Harley-Davidson Funding Corp.
6.80% due 06/15/2018 (f)		1,000,000		947,355
HSBC Finance Corp.
5.00% due 06/30/2015		645,000		646,805
HVB Funding Trust III
9.00% due 10/22/2031 (f)		10,000		7,000
International Lease Finance Corp.
4.55% due 10/15/2009		7,000		6,942
International Lease Finance Corp., MTN
5.45% due 03/24/2011		555,000		488,241
International Lease Finance Corp., Series P
0.9094% due 01/15/2010 (b)		13,000		12,585
Jefferies Group, Inc.
6.45% due 06/08/2027		210,000		167,139
John Deere Capital Corp., Series D
4.125% due 01/15/2010		39,000		39,527
JPMorgan Chase & Company
4.65% due 06/01/2014		655,000		683,908
6.30% due 04/23/2019		2,127,000		2,331,783
6.75% due 02/01/2011		218,000		232,051
JPMorgan Chase & Company, Series 1
7.90% until 04/30/2018, then variable due 04/29/2049		2,070,000		1,972,751
JPMorgan Chase Capital XX, Series T
6.55% due 09/15/2066		750,000		653,665
JPMorgan Chase Capital XXIII
1.44% due 05/15/2077 (b)		915,000		595,749
Kaupthing Bank HF
5.75% due 10/04/2011 ^ (f)		750,000		142,500
Lehman Brothers Holdings, Inc., MTN zero coupon due 01/26/2017 ^	$	1,120,000	$	193,200
Macquarie Group, Ltd.
7.30% due 08/01/2014 (f)		260,000		270,372
MBNA Capital, Series B
1.2831% due 02/01/2027 (b)		23,000		12,598
Merrill Lynch & Company, Inc.
1.0331% due 05/02/2017 (b)		1,000,000		770,194
7.75% due 05/14/2038		1,855,000		1,969,789
Merrill Lynch & Company, Inc., MTN
0.8669% due 06/05/2012 (b)		472,000		439,513
6.875% due 04/25/2018		1,515,000		1,546,938
Mizuho Financial Group (Cayman), Ltd.
8.375% due 01/29/2049		250,000		245,000
Morgan Stanley
0.96% due 10/18/2016 (b)		830,000		734,787
7.30% due 05/13/2019		535,000		595,793
Morgan Stanley, MTN
5.95% due 12/28/2017		290,000		296,532
6.625% due 04/01/2018		825,000		881,545
Nelnet, Inc.
7.40% until 09/29/2011, then variable due 09/15/2061		400,000		268,658
NiSource Finance Corp.
6.15% due 03/01/2013		219,000		227,693
Osiris Capital PLC, Series C
3.3594% due 01/15/2010 (b)(f)		920,000		907,253
Osiris Capital PLC, Series D
5.5094% due 01/15/2010 (b)(f)		360,000		356,416
PNC Financial Services Group, Inc.
8.25% until 05/21/2013, then variable due 05/29/2049		760,000		692,805
PNC Funding Corp.
0.6275% due 01/31/2012 (b)		1,000,000		951,108
Schwab Capital Trust I
7.50% until 11/15/2017, then variable due 11/15/2037		1,435,000		1,238,548
Skandinaviska Enskilda Banken AB
5.471% until 03/23/2015, then variable due 03/29/2049 (f)		400,000		228,000
SLM Corp.
0.8037% due 01/27/2014 (b)		1,840,000		1,168,260
4.50% due 07/26/2010		410,000		392,257
SLM Corp., MTN
8.45% due 06/15/2018		370,000		284,639
SMFG Preferred Capital
6.078% until 01/25/2017, then variable due 01/29/2049 (f)		400,000		347,768
Sovereign Capital Trust VI
7.908% due 06/13/2036		295,000		264,321
Teco Finance, Inc.
6.572% due 11/01/2017		302,000		303,307
7.00% due 05/01/2012		233,000		246,060
Ucar Finance, Inc.
10.25% due 02/15/2012		20,000		19,425
Vita Capital III, Ltd., Series B-I
1.6969% due 01/01/2011 (b)(f)		870,000		808,665
Waddell & Reed Financial, Inc.
5.60% due 01/15/2011		400,000		400,238

The accompanying notes are an integral part of the financial statements.

74

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Wells Fargo Capital XIII, Series GMTN
7.70% until 03/26/2013, then variable due 12/29/2049	$	1,000,000	$	870,000
Westfield Capital Corp., Ltd.
4.375% due 11/15/2010 (f)		1,004,000		1,012,070
				57,787,401
Food & Beverages - 2.00%
Anheuser-Busch InBev NV
7.20% due 01/15/2014		390,000		438,028
ASG Consolidated LLC/ASG Finance, Inc.
11.50% due 11/01/2011 (f)		375,000		341,250
Cargill, Inc.
6.125% due 09/15/2036 (f)		665,000		647,439
Dr. Pepper Snapple Group, Inc.
6.12% due 05/01/2013		230,000		248,181
6.82% due 05/01/2018		305,000		340,202
General Mills, Inc.
5.20% due 03/17/2015		160,000		172,223
5.65% due 09/10/2012		600,000		652,949
5.70% due 02/15/2017		245,000		266,778
Kellogg Company, Series B
6.60% due 04/01/2011		209,000		224,478
Kraft Foods, Inc.
5.625% due 11/01/2011		219,000		236,183
6.00% due 02/11/2013		605,000		658,134
6.125% due 02/01/2018		1,360,000		1,488,358
Kroger Company
6.80% due 12/15/2018		920,000		1,053,546
7.00% due 05/01/2018		580,000		659,374
McCormick & Company, Inc.
5.75% due 12/15/2017		1,000,000		1,063,722
Nabisco, Inc.
7.55% due 06/15/2015		229,000		259,930
SABMiller PLC
6.50% due 07/15/2018 (f)		875,000		951,678
Smithfield Foods, Inc.
7.00% due 08/01/2011		18,000		16,920
10.00% due 07/15/2014 (f)		265,000		270,300
Supervalu, Inc.
7.50% due 11/15/2014		500,000		492,500
Tate & Lyle International Finance PLC
5.00% due 11/15/2014 (f)		208,000		195,358
Tesco PLC
6.15% due 11/15/2037 (f)		570,000		607,052
Tyson Foods, Inc.
10.50% due 03/01/2014		175,000		195,125
				11,479,708
Gas & Pipeline Utilities - 3.25%
Buckeye Partners LP
5.125% due 07/01/2017		225,000		221,100
DCP Midstream LLC
9.75% due 03/15/2019 (f)		395,000		469,595
Energy Transfer Partners LP
6.70% due 07/01/2018		1,000,000		1,061,392
7.50% due 07/01/2038		1,440,000		1,672,501
8.50% due 04/15/2014		375,000		431,141
9.70% due 03/15/2019		345,000		425,249
Gulf South Pipeline Company LP
5.75% due 08/15/2012 (f)		350,000		363,329
Kinder Morgan Energy Partners LP
5.125% due 11/15/2014		240,000		249,504
5.80% due 03/15/2035		208,000		195,375
6.50% due 02/01/2037		1,091,000		1,112,046
7.30% due 08/15/2033		212,000		223,656
7.75% due 03/15/2032		200,000		218,559
9.00% due 02/01/2019		525,000		634,265
Kinder Morgan Energy Partners LP, MTN
6.95% due 01/15/2038		540,000		583,805
MarkWest Energy Partners LP / MarkWest Energy Finance Corp., Series B
8.50% due 07/15/2016		315,000		297,675
Michigan Consolidated Gas Company
5.70% due 03/15/2033		14,000		13,939
NGPL Pipeco LLC
7.119% due 12/15/2017 (f)		1,420,000		1,556,214
Nustar Logistics
7.65% due 04/15/2018		220,000		234,974
ONEOK Partners LP
6.15% due 10/01/2016		728,000		759,684
6.65% due 10/01/2036		1,245,000		1,279,186
8.625% due 03/01/2019		325,000		388,653
Regency Energy Partners LP
9.375% due 06/01/2016 (f)		265,000		265,000
Southern Union Company
7.20% until 11/01/2011, then variable due 11/01/2066		950,000		710,125
Spectra Energy Capital LLC
6.20% due 04/15/2018		3,290,000		3,480,563
TEPPCO Partners LP
7.70% until 06/01/2017, then variable due 06/01/2067		705,000		558,486
Texas Eastern Transmission LP
6.00% due 09/15/2017 (f)		685,000		736,883
TransCanada Pipelines, Ltd.
7.125% due 01/15/2019		400,000		466,002
				18,608,901
Healthcare Products - 0.23%
Beckman Coulter, Inc.
7.00% due 06/01/2019		245,000		275,355
CareFusion Corp.
5.125% due 08/01/2014 (f)		220,000		228,043
6.375% due 08/01/2019 (f)		160,000		171,203
Covidien International Finance SA
6.00% due 10/15/2017		610,000		671,563
				1,346,164
Healthcare Services - 0.32%
Coventry Health Care, Inc.
5.875% due 01/15/2012		225,000		224,923
6.30% due 08/15/2014		420,000		382,791
UnitedHealth Group, Inc.
4.875% due 02/15/2013		225,000		232,360
5.375% due 03/15/2016		240,000		241,405
5.80% due 03/15/2036		115,000		103,151
WellPoint, Inc.
5.00% due 12/15/2014		208,000		213,490

The accompanying notes are an integral part of the financial statements.

75

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Healthcare Services (continued)
WellPoint, Inc. (continued)
6.375% due 06/15/2037	$	415,000	$	425,631
				1,823,751
Holdings Companies/Conglomerates - 0.17%
General Electric Company
5.00% due 02/01/2013		887,000		938,031
SPI Electricity & Gas Australia Holdings Party, Ltd.
6.15% due 11/15/2013 (f)		16,000		16,663
				954,694
Homebuilders - 0.18%
Centex Corp.
5.80% due 09/15/2009		830,000		830,000
Pulte Homes, Inc.
6.25% due 02/15/2013		210,000		207,900
				1,037,900
Hotels & Restaurants - 0.46%
Darden Restaurants, Inc.
6.80% due 10/15/2037		835,000		826,654
Marriott International, Inc.
4.625% due 06/15/2012		26,000		26,063
Starwood Hotels & Resorts Worldwide, Inc.
6.25% due 02/15/2013		315,000		296,888
Yum! Brands, Inc.
6.25% due 03/15/2018		405,000		438,347
6.875% due 11/15/2037		965,000		1,047,074
				2,635,026
Household Appliances - 0.14%
Whirlpool Corp.
8.00% due 05/01/2012		370,000		393,735
8.60% due 05/01/2014		370,000		406,361
				800,096
Household Products - 0.27%
Clorox Company
5.00% due 03/01/2013		600,000		634,429
5.95% due 10/15/2017		500,000		541,742
Yankee Acquisition Corp., Series B
8.50% due 02/15/2015		435,000		393,675
				1,569,846
Industrial Machinery - 0.18%
Case New Holland, Inc.
7.75% due 09/01/2013 (f)		330,000		325,050
Caterpillar, Inc.
7.25% due 09/15/2009		213,000		213,433
Roper Industries, Inc.
6.25% due 09/01/2019		205,000		208,042
Terex Corp.
10.875% due 06/01/2016		265,000		277,587
				1,024,112
Industrials - 0.18%
Parker Hannifin Corp., Series MTN
5.50% due 05/15/2018		1,000,000		1,048,935
Insurance - 5.34%
Aflac, Inc.
8.50% due 05/15/2019		365,000		424,062
Allied World Assurance Holdings, Ltd.
7.50% due 08/01/2016		1,490,000		1,437,279
American International Group, Inc., Series WI
8.175% until 05/15/2038, then variable due 05/15/2068		700,000		329,000
AON Corp.
8.205% due 01/01/2027		990,000		910,800
Assurant, Inc.
5.625% due 02/15/2014		209,000		213,743
6.75% due 02/15/2034		550,000		439,776
AXA SA
6.379% until 12/14/2036, then variable due 12/14/2049 (f)		585,000		427,050
6.463% until 12/14/2018, then variable due 12/31/2049 (f)		275,000		200,750
Catlin Insurance Company, Ltd.
7.249% until 01/19/2017, then variable due 12/31/2049 (f)		500,000		295,000
Chubb Corp.
5.75% due 05/15/2018		230,000		249,573
Cigna Corp.
6.15% due 11/15/2036		500,000		403,942
CNA Financial Corp.
6.00% due 08/15/2011		280,000		279,775
6.50% due 08/15/2016		885,000		797,196
Endurance Specialty Holdings, Ltd.
7.00% due 07/15/2034		800,000		646,619
Financial Security Assurance Holdings, Ltd.
6.40% until 12/15/2036, then variable due 12/15/2066 (f)		795,000		377,625
Foundation Re II, Ltd.
7.19% due 11/26/2010 (b)(f)		250,000		237,776
Genworth Financial, Inc.
6.15% until 11/15/2016, then variable due 11/15/2066		790,000		402,900
Hartford Financial Services Group, Inc.
4.625% due 07/15/2013		8,000		7,432
6.30% due 03/15/2018		1,485,000		1,347,508
Horace Mann Educators Corp.
6.85% due 04/15/2016		210,000		188,638
Liberty Mutual Group, Inc.
6.50% due 03/15/2035 (f)		683,000		500,093
7.30% due 06/15/2014 (f)		380,000		355,397
7.50% due 08/15/2036 (f)		1,470,000		1,148,812
7.80% due 03/07/2087 (f)		455,000		318,500
Lincoln National Corp.
7.00% until 05/17/2016, then variable due 05/17/2066		555,000		366,300
6.05% until 04/20/2017, then variable due 04/20/2067		495,000		309,375
8.75% due 07/01/2019		3,400,000		3,802,064
Markel Corp.
6.80% due 02/15/2013		325,000		329,052
Massachusetts Mutual Life Insurance Company
8.875% due 06/01/2039		220,000		246,881
Merna Reinsurance, Ltd., Series B
2.3475% due 06/30/2012 (b)(f)		1,000,000		962,200

The accompanying notes are an integral part of the financial statements.

76

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Insurance (continued)
MetLife, Inc.
6.40% until 12/15/2036, then variable due 12/15/2066	$	600,000	$	469,500
6.75% due 06/01/2016		360,000		393,802
Metropolitan Life Global Funding I
5.125% due 04/10/2013 (f)		405,000		416,656
Oil Casualty Insurance, Ltd.
8.00% due 09/15/2034 (f)		1,873,000		1,200,930
Pacific Life Insurance Company
9.25% due 06/15/2039 (f)		940,000		997,056
Progressive Corp.
6.70% until 06/15/2017, then variable due 06/15/2067		225,000		180,845
Prudential Financial, Inc.
4.75% due 04/01/2014		227,000		222,470
6.10% due 06/15/2017		1,100,000		1,099,883
6.20% due 01/15/2015		555,000		581,393
7.375% due 06/15/2019		1,195,000		1,298,736
Prudential Financial, Inc., MTN
5.15% due 01/15/2013		540,000		544,109
5.70% due 12/14/2036		678,000		595,020
QBE Insurance Group, Ltd.
9.75% due 03/14/2014		301,000		327,918
StanCorp Financial Group, Inc.
6.90% until 06/01/2017, then variable due 06/01/2067		1,150,000		656,097
Symetra Financial Corp.
8.30% until 10/15/2017, then variable due 10/15/2037 (f)		310,000		161,200
6.125% due 04/01/2016 (f)		350,000		283,061
Transatlantic Holdings, Inc.
5.75% due 12/14/2015		575,000		513,987
W.R. Berkley Corp.
5.125% due 09/30/2010		900,000		905,845
6.15% due 08/15/2019		14,000		12,184
White Mountains Re Group, Ltd.
7.506% until 06/30/2017, then variable due 05/29/2049 (f)		1,540,000		974,481
XL Capital, Ltd.
5.25% due 09/15/2014		714,000		647,876
XL Capital, Ltd., Series E
6.50% until 04/15/2017, then variable due 12/31/2049		275,000		162,250
				30,600,417
International Oil - 0.92%
ConocoPhillips Canada Funding Company
5.95% due 10/15/2036		1,000,000		1,070,324
Delek & Avner-Yam Tethys, Ltd.
5.326% due 08/01/2013 (f)		144,687		140,408
EnCana Corp.
6.50% due 08/15/2034		1,000,000		1,078,640
Pemex Project Funding Master Trust
1.9294% due 06/15/2010 (b)(f)		218,000		217,455
Petro-Canada
6.05% due 05/15/2018		716,000		741,819
Ras Laffan Liquefied Natural Gas Company, Ltd.
3.437% due 09/15/2009 (f)		2,700		2,700
Ras Laffan Liquefied Natural Gas Company, Ltd. III
5.838% due 09/30/2027 (f)		330,000		298,402
Talisman Energy, Inc.
6.25% due 02/01/2038		1,150,000		1,129,828
Weatherford International, Ltd.
6.50% due 08/01/2036		600,000		586,544
				5,266,120
Leisure Time - 1.17%
AMC Entertainment, Inc.
8.00% due 03/01/2014		495,000		465,300
8.75% due 06/01/2019		130,000		129,025
Cinemark USA, Inc.
8.625% due 06/15/2019 (f)		175,000		176,750
Fontainebleau Las Vegas
11.00% due 06/15/2015 ^ (f)		250,000		8,750
Greektown Holdings LLC
10.75% due 12/01/2013 ^ (f)		220,000		47,300
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		545,000		490,500
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 ^ (f)		460,000		202,400
Mashantucket Western Pequot Tribe
8.50% due 11/15/2015 (f)		85,000		17,850
MGM Mirage, Inc.
10.375% due 05/15/2014 (f)		90,000		94,725
Mohegan Tribal Gaming Authority
8.00% due 04/01/2012		300,000		246,000
MTR Gaming Group, Inc.
12.625% due 07/15/2014 (f)		170,000		165,750
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		280,000		205,800
Regal Cinemas Corp.
8.625% due 07/15/2019 (f)		110,000		111,100
Royal Caribbean Cruises, Ltd.
7.00% due 06/15/2013		835,000		741,063
Seminole Indian Tribe of Florida
6.535% due 10/01/2020 (f)		405,000		345,607
Turning Stone Resort Casino
9.125% due 09/15/2014 (f)		370,000		339,475
Vivendi
5.75% due 04/04/2013 (f)		2,515,000		2,576,929
Waterford Gaming LLC
8.625% due 09/15/2014 (f)		207,000		140,760
Yonkers Racing Corp.
11.375% due 07/15/2016 (f)		180,000		183,150
				6,688,234
Liquor - 0.07%
Anheuser-Busch Companies, Inc.
6.50% due 02/01/2043		10,000		10,054
Miller Brewing Company
5.50% due 08/15/2013 (f)		380,000		399,420
				409,474
Manufacturing - 0.57%
Eaton Corp.
4.90% due 05/15/2013		450,000		474,023
Ingersoll-Rand Global Holding Company, Ltd.
6.875% due 08/15/2018		460,000		487,541
Tyco Electronics Group SA
6.00% due 10/01/2012		410,000		424,188

The accompanying notes are an integral part of the financial statements.

77

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Manufacturing (continued)
Tyco Electronics Group SA (continued)
6.55% due 10/01/2017	$	910,000	$	904,263
7.125% due 10/01/2037		501,000		501,019
Tyco International Finance SA
8.50% due 01/15/2019		400,000		482,934
				3,273,968
Medical-Hospitals - 0.17%
HCA, Inc.
8.50% due 04/15/2019 (f)		440,000		445,500
Humana, Inc.
8.15% due 06/15/2038		590,000		525,973
				971,473
Metal & Metal Products - 0.11%
Alcan, Inc.
5.00% due 06/01/2015		6,000		6,026
CII Carbon LLC
11.125% due 11/15/2015 (f)		405,000		373,613
Commercial Metals Company
7.35% due 08/15/2018		270,000		274,400
				654,039
Mining - 0.27%
Corporacion Nacional del Cobre
5.50% due 10/15/2013 (f)		209,000		227,479
Drummond Company, Inc.
7.375% due 02/15/2016 (f)		450,000		396,000
Rio Tinto Finance USA, Ltd.
8.95% due 05/01/2014		330,000		384,608
Teck Resources, Ltd.
10.75% due 05/15/2019		215,000		244,831
Vedanta Resources PLC
8.75% due 01/15/2014 (f)		315,000		307,913
				1,560,831
Paper - 0.27%
International Paper Company
7.95% due 06/15/2018		395,000		419,248
9.375% due 05/15/2019		425,000		477,575
PE Paper Escrow GmbH
12.00% due 08/01/2014 (f)		100,000		102,500
Plum Creek Timberlands LP
5.875% due 11/15/2015		320,000		301,976
Verso Paper, Inc., Series B
9.125% due 08/01/2014		380,000		247,950
				1,549,249
Petroleum Services - 0.61%
Anadarko Finance Company, Series B
7.50% due 05/01/2031		900,000		962,242
Anadarko Petroleum Corp.
6.45% due 09/15/2036		1,000,000		989,873
BJ Services Company
6.00% due 06/01/2018		880,000		868,155
McMoRan Exploration Company
11.875% due 11/15/2014		245,000		237,037
Tesoro Corp.
9.75% due 06/01/2019		175,000		177,188
Valero Logistics Operations LP
6.05% due 03/15/2013		248,000		254,838
				3,489,333
Pharmaceuticals - 0.68%
Allergan, Inc.
5.75% due 04/01/2016		400,000		425,304
Hospira, Inc., GMTN
6.40% due 05/15/2015		180,000		196,397
Medco Health Solutions, Inc.
7.25% due 08/15/2013		1,380,000		1,537,789
Schering Plough Corp.
5.55% due 12/01/2013		218,000		237,808
Teva Pharmaceutical Finance LLC
5.55% due 02/01/2016		170,000		181,584
6.15% due 02/01/2036		170,000		183,197
Watson Pharmaceuticals, Inc.
6.125% due 08/15/2019		410,000		421,527
Wyeth
5.50% due 03/15/2013		670,000		733,161
				3,916,767
Pipelines - 0.66%
Enbridge Energy Partners LP, Series B
6.50% due 04/15/2018		600,000		630,152
7.50% due 04/15/2038		600,000		666,158
Plains All American Pipeline LP
4.25% due 09/01/2012		585,000		597,299
6.50% due 05/01/2018		265,000		280,235
8.75% due 05/01/2019		500,000		602,903
Texas Gas Transmission LLC
5.50% due 04/01/2013 (f)		1,000,000		1,016,999
				3,793,746
Railroads & Equipment - 0.62%
CSX Corp.
5.50% due 08/01/2013		520,000		549,534
6.25% due 04/01/2015		170,000		188,353
7.375% due 02/01/2019		727,000		843,457
Grupo Transportacion Ferroviaria Mexicana, SA de CV
9.375% due 05/01/2012		445,000		438,325
Union Pacific Corp.
5.45% due 01/31/2013		650,000		692,571
5.70% due 08/15/2018		785,000		838,469
				3,550,709
Real Estate - 3.64%
AvalonBay Communities, Inc.
5.50% due 01/15/2012		605,000		627,982
Boston Properties, Ltd.
6.25% due 01/15/2013		215,000		221,068
BRE Properties, Inc.
5.50% due 03/15/2017		430,000		380,513
Camden Property Trust
5.00% due 06/15/2015		216,000		202,976
Colonial Properties Trust
6.25% due 06/15/2014		211,000		200,540
Colonial Realty LP
5.50% due 10/01/2015		231,000		204,211

The accompanying notes are an integral part of the financial statements.

78

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

		Shares or
		Principal
		Amount		Value
CORPORATE BONDS (continued)
Real Estate (continued)
Developers Diversified Realty Corp.
4.625% due 08/01/2010		$	22,000	$	21,262
Duke Realty LP
5.95% due 02/15/2017			1,505,000		1,354,301
6.25% due 05/15/2013			1,000,000		987,657
8.25% due 08/15/2019			490,000		494,103
ERP Operating LP
5.75% due 06/15/2017			975,000		944,840
6.625% due 03/15/2012			748,000		798,296
ERP Operating LP, REIT
5.125% due 03/15/2016			670,000		636,099
HCP, Inc., MTN
6.30% due 09/15/2016			1,000,000		936,002
Health Care Property Investors, Inc., MTN
4.875% due 09/15/2010			229,000		229,243
5.625% due 02/28/2013			520,000		508,056
Health Care, Inc.
6.00% due 11/15/2013			215,000		210,150
6.20% due 06/01/2016			680,000		627,575
Healthcare Realty Trust, Inc.
8.125% due 05/01/2011			360,000		377,181
Hospitality Properties Trust
6.75% due 02/15/2013			1,212,000		1,200,788
HRPT Properties Trust
6.65% due 01/15/2018			200,000		174,693
Kimco Realty Corp.
5.70% due 05/01/2017			1,190,000		1,054,887
Mack-Cali Realty Corp.
7.75% due 08/15/2019			240,000		243,299
Nationwide Health Properties, Inc.
6.50% due 07/15/2011			285,000		277,380
ProLogis
5.625% due 11/15/2015			375,000		334,326
5.625% due 11/15/2016			1,075,000		935,844
6.625% due 05/15/2018			480,000		428,219
ProLogis, REIT
5.75% due 04/01/2016			755,000		671,273
Realty Income Corp.
5.95% due 09/15/2016			560,000		534,256
Rouse Company LP
3.625% due 03/15/2049 ^			645,000		480,525
Simon Property Group LP
5.625% due 08/15/2014			935,000		959,494
5.875% due 03/01/2017			595,000		602,013
Simon Property Group LP, REIT
5.75% due 12/01/2015			530,000		548,961
10.35% due 04/01/2019			330,000		407,223
USB Realty Corp.
6.091% until 01/15/2012, then variable due 12/29/2049 (f)			500,000		326,250
WEA Finance LLC
6.75% due 09/02/2019 (f)			290,000		285,644
Westfield Group
5.40% due 10/01/2012 (f)			1,410,000		1,440,918
					20,868,048
Retail - 0.57%
CVS Caremark Corp.
6.302% until 06/01/2012, then
variable due 06/01/2062			710,000		560,900
0.9675% due 06/01/2010 (b)			900,000		898,332
6.125% due 08/15/2016			515,000		568,471
CVS Pass-Through Trust
8.353% due 07/10/2031 (f)			369,504		386,131
Macy’s Retail Holdings, Inc.
8.875% due 07/15/2015			335,000		339,253
Staples, Inc.
9.75% due 01/15/2014			440,000		516,510
					3,269,597
Retail Trade - 0.11%
Burlington Coat Factory Warehouse Corp.
11.125% due 04/15/2014			390,000		365,625
Nordstrom, Inc.
6.75% due 06/01/2014			245,000		264,599
					630,224
Sanitary Services - 0.05%
Republic Services, Inc.
5.50% due 09/15/2019 (f)			285,000		282,962
Software - 0.06%
Fiserv, Inc.
6.80% due 11/20/2017			330,000		360,289
Steel - 0.18%
Allegheny Technologies, Inc.
9.375% due 06/01/2019			300,000		328,976
ArcelorMittal
9.85% due 06/01/2019			600,000		685,341
					1,014,317
Telecommunications Equipment &
Services - 1.31%
BellSouth Corp.
6.55% due 06/15/2034			420,000		450,462
Citizens Communications Company
6.25% due 01/15/2013			600,000		566,250
9.00% due 08/15/2031			900,000		829,125
Deutsche Telekom International Finance BV
6.75% due 08/20/2018			870,000		982,179
7.125% due 07/11/2011	EUR		1,000		1,555
8.50% due 06/15/2010		$	222,000		233,492
8.75 due 06/15/2030			227,000		302,072
Embarq Corp.
7.995% due 06/01/2036			1,270,000		1,306,986
Intelsat Jackson Holdings, Ltd.
11.50% due 06/15/2016			320,000		325,600
SBA Telecommunications, Inc.
8.00% due 08/15/2016 (f)			130,000		129,675
SBC Communications, Inc.
4.125% due 09/15/2009			207,000		207,209
5.10% due 09/15/2014			16,000		17,294
5.625% due 06/15/2016			12,000		12,962
6.45% due 06/15/2034			580,000		614,624
Singapore Telecommunications, Ltd.
6.375% due 12/01/2011 (f)			9,000		9,814

The accompanying notes are an integral part of the financial statements.

79

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment &
Services (continued)
Verizon Communications, Inc.
6.10% due 04/15/2018	$	910,000	$	989,214
West Corp.
11.00% due 10/15/2016		565,000		521,212
				7,499,725
Telephone - 1.27%
AT&T, Inc.
5.60% due 05/15/2018		500,000		528,100
6.30% due 01/15/2038		500,000		524,924
BellSouth Corp.
4.20% due 09/15/2009		212,000		212,215
6.00% due 11/15/2034		820,000		843,260
British Telecommunications PLC
5.95% due 01/15/2018		10,000		10,183
Cincinnati Bell, Inc.
8.375% due 01/15/2014		365,000		354,050
France Telecom SA
7.75% due 03/01/2011		20,000		21,738
Frontier Communications Corp.
8.25% due 05/01/2014		460,000		456,550
Qwest Corp.
7.875% due 09/01/2011		315,000		321,300
Sprint Capital Corp.
6.875% due 11/15/2028		900,000		654,750
7.625% due 01/30/2011		245,000		245,306
8.375% due 03/15/2012		207,000		207,259
8.75% due 03/15/2032		685,000		568,550
Telecom Italia Capital SA
6.175% due 06/18/2014		345,000		373,648
7.20% due 07/18/2036		650,000		713,206
7.721% due 06/04/2038		600,000		700,497
Verizon Communications, Inc.
6.90% due 04/15/2038		450,000		514,942
Verizon of New York, Inc., Series A
6.875% due 04/01/2012		15,000		16,343
				7,266,821
Tobacco - 0.48%
Alliance One International, Inc.
8.50% due 05/15/2012		190,000		189,762
10.00% due 07/15/2016 (f)		385,000		380,188
Altria Group, Inc.
8.50% due 11/10/2013		735,000		849,906
Philip Morris International, Inc.
4.875% due 05/16/2013		300,000		319,383
5.65% due 05/16/2018		620,000		659,350
Reynolds American, Inc.
7.25% due 06/01/2013		350,000		373,094
				2,771,683
Toys, Amusements & Sporting Goods - 0.07%
Hasbro, Inc.
6.125% due 05/15/2014		375,000		405,637
Transportation - 0.25%
CMA CGM SA
7.25% due 02/01/2013 (f)		455,000		200,200
GATX Corp.
8.75% due 05/15/2014		610,000		653,709
Navios Maritime Holdings, Inc.
9.50% due 12/15/2014		385,000		336,875
RailAmerica, Inc.
9.25% due 07/01/2017 (f)		255,000		263,606
				1,454,390
Utility Service - 0.29%
Public Service Company of New Mexico
7.95% due 05/15/2018		1,000,000		999,752
Veolia Environnement
6.00% due 06/01/2018		600,000		639,839
				1,639,591
Water Treatment Systems - 0.11%
American Water Capital Corp.
6.085% due 10/15/2017		600,000		622,688
TOTAL CORPORATE BONDS (Cost $292,742,922)				296,998,780
MUNICIPAL BONDS - 0.32%
District of Columbia - 0.20%
George Washington University, Series B
5.095% due 09/15/2032		1,175,000		1,142,276
New Jersey - 0.12%
New Jersey State Turnpike Authority
7.414% due 01/01/2040		540,000		662,359
TOTAL MUNICIPAL BONDS (Cost $1,767,699)				1,804,635
COLLATERALIZED MORTGAGE
OBLIGATIONS - 14.91%
American Home Mortgage Assets, Series 2006-6, Class A1A
0.4556% due 12/25/2046 (b)		488,077		228,712
American Home Mortgage Assets, Series 2006-6, Class XP
2.8475% IO due 12/25/2046		8,432,273		218,712
American Home Mortgage Assets, Series 2007-5, Class XP
3.6435% IO due 06/25/2047		3,258,926		122,210
American Home Mortgage Investment Trust, Series 2004-4, Class 5A
4.44% due 02/25/2045		577,328		466,867
American Home Mortgage Investment Trust,Series 2007-1, Class GIOP
2.0874% IO due 05/25/2047		6,136,939		245,478
American Tower Trust, Series 2007-1A, Class D
5.9568% due 04/15/2037 (f)		535,000		486,850
Banc of America Commercial Mortgage, Inc., Series 2005-2, Class A3
4.611% due 07/10/2043		857,048		863,472
Banc of America Commercial Mortgage, Inc., Series 2006-3, Class AM
6.0073% due 07/10/2044 (b)		1,855,000		1,190,262
Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3
4.128% due 07/10/2042		17,249		17,315
Banc of America Commercial Mortgage, Inc., Series 2005-2, Class AJ
4.953% due 07/10/2043 (b)		50,846		31,346

The accompanying notes are an integral part of the financial statements.

80

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Banc of America Commercial Mortgage, Inc., Series 2005-6, Class A4
5.3511% due 09/10/2047 (b)	$	470,000	$	443,895
Banc of America Commercial Mortgage, Inc., Series 2006-1, Class AM
5.421% due 09/10/2045		1,600,000		1,191,215
Banc of America Commercial Mortgage, Inc., Series 2006-2, Class A3
5.9006% due 05/10/2045 (b)		970,000		904,185
Banc of America Commercial Mortgage, Inc., Series 2006-3, Class A4
5.889% due 07/10/2044		995,000		820,814
Banc of America Commercial Mortgage, Inc., Series 2006-4, Class A3A
5.60% due 07/10/2046		750,000		688,620
Banc of America Funding Corp., Series 2006-B, Class 6A1
5.8275% due 03/20/2036 (b)		406,767		276,623
Banc of America Funding Corp., Series 2007-E, Class 4A1
5.7819% due 07/20/2047 (b)		334,898		225,710
Banc of America Large Loan, Series 2005-MIB1, Class B
0.5328% due 03/15/2022 (b)(f)		895,000		625,346
Banc of America Large Loan, Series 2006-BIX1,Class C
0.4528% due 10/15/2019 (b)(f)		1,000,000		720,356
Bank of America Commercial Mortgage, Inc., Series 2005-5, Class XC
0.0919% IO due 10/10/2045 (f)		81,337,496		252,699
Bank of America Commercial Mortgage, Inc., Series 2001-3, Class A1
4.89% due 04/11/2037		8,879		8,879
Bear Stearns Alt-A Trust, Series 2005-3, Class B2
5.1771% due 04/25/2035 (b)		179,189		14,347
Bear Stearns Asset Backed Securities, Inc., Series 2003-AC4, Class A
5.50% due 09/25/2033		8,306		7,234
Bear Stearns Commercial Mortgage Securities, Inc.
4.997% due 06/11/2041 (f)		665,000		225,538
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-PWR6, Class X1
0.2662% IO due 11/11/2041		56,900,434		809,716
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class X1
0.2482% IO due 06/11/2041		66,474,829		810,953
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-PWR5, Class X1
0.3418% IO due 07/11/2042		442,359		5,879
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-T16, Class X1
0.3408% IO due 02/13/2046		525,998		6,917
Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PWR8, Class AJ
4.75% due 06/11/2041		47,292		27,951
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-BBA7, Class G
0.7128% due 03/15/2019 (f)		700,000		325,438
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-PW14, Class D
5.412% due 12/11/2038 (f)		400,000		79,837
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-T24, Class AY
0.6034% IO due 10/12/2041		28,875,170		383,869
Bear Stearns Mortgage Funding Trust, Series 2006-AR1, Class 2A1
0.4856% due 08/25/2036 (b)		379,098		185,306
Bear Stearns Mortgage Funding Trust, Series 2006-AR4, Class A1
0.4756% due 12/25/2036 (b)		1,802,662		830,285
Chase Commercial Mortgage Securities Corp., Series 2000-2, Class C
7.928% due 07/15/2032		29,619		30,222
Chaseflex Trust, Series 2005-2, Class 4A1
5.00% due 06/25/2035		203,889		181,907
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3
5.9163% due 03/15/2049 (b)		700,000		653,555
Citigroup Mortgage Loan Trust, Inc., Series 2005-10, Class 1A5A
5.8325% due 12/25/2035 (b)		333,374		219,381
Citigroup Mortgage Loan Trust, Inc., Series 2005-5, Class 2A3
5.00% due 08/25/2035		185,185		155,960
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class C
5.399% due 09/15/2020 (b)		190,000		88,722
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.399% due 09/15/2020 (b)		360,000		348,254
Citigroup/Deutsche Bank Commercial Mortgage, Series 2006-CD2, Class AM
5.5919% due 01/15/2046 (b)		1,000,000		708,765
Commercial Mortgage Pass Through Certificates, Series 2003-LB1A, Class A2
4.084% due 06/10/2038		424,859		418,666
Commercial Mortgage Pass Through Certificates, Series 2005-C6, Class B
5.3991% due 06/10/2044 (b)		49,365		10,767
Commercial Mortgage Pass Through Certificates, Series 2005-FL11, Class AJ
0.4728% due 11/15/2017 (b)(f)		478,649		424,066
Countrywide Alternative Loan Trust, Series 2007-25, Class 1A2
6.50% due 11/25/2037		1,156,257		716,157
Countrywide Alternative Loan Trust, Series 2006-OA3, Class X
2.8028% IO due 05/25/2036		2,498,199		51,013
Countrywide Alternative Loan Trust, Series 2005-59, Class 2X
3.1733% IO due 11/20/2035		3,242,458		61,801
Countrywide Alternative Loan Trust, Series 2006-11CB, Class 3A1
6.50% due 05/25/2036		522,754		323,781
Countrywide Alternative Loan Trust, Series 2006-OA12, Class X
3.6002% IO due 09/20/2046		21,223,568		659,921
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB2, Class 4A
3.0425% due 07/20/2034 (b)		1,190,480		1,136,215

The accompanying notes are an integral part of the financial statements.

81

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Credit Suisse Mortgage Capital Certificates, Series 2006-TFLA, Class A2
0.4328% due 04/15/2021 (b)	$	1,335,000	$	937,899
Credit Suisse Mortgage Capital Certificates, Series 2006-TFLA, Class B
0.5028% due 04/15/2021 (b)(f)		870,000		601,431
Crown Castle Towers LLC, Series 2006-1A, Class F
6.6496% due 11/15/2036 (f)		1,760,000		1,724,800
Crown Castle Towers LLC, Series 2006-1A, Class G
6.7954% due 11/15/2036 (f)		1,225,000		1,200,500
Crown Castle Towers LLC, Series 2006-1A, Class E
6.0652% due 11/15/2036 (f)		550,000		539,000
CS First Boston Mortgage Securities Corp, Series 2005-C1, Class A3
4.813% due 02/15/2038		670,000		661,890
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A4
5.435% due 09/15/2034		258,243		266,038
CS First Boston Mortgage Securities Corp., Series 2001-CP4, Class A4
6.18% due 12/15/2035		1,299,404		1,361,393
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A3
6.133% due 04/15/2037		144,746		151,752
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A4
4.283% due 10/15/2039		160,860		159,501
CS First Boston Mortgage Securities Corp., Series 2005-C1, Class AX
0.2183% IO due 02/15/2038 (f)		89,020,996		663,002
CS First Boston Mortgage Securities Corp., Series 2005-C2, Class B
5.016% due 04/15/2037		58,053		21,164
DB Master Finance LLC, Series 2006-1, Class-A2
5.779% due 06/20/2031 (f)		3,045,000		2,933,005
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (f)		125,000		109,454
DSLA Mortgage Loan Trust, Series 2005-AR5, Class X2
3.2982% IO due 08/19/2045		4,959,499		113,139
Federal Home Loan Mortgage Corp., Series 2005-3019, Class MD
4.75% due 01/15/2031		340,264		351,524
Federal Home Loan Mortgage Corp., Series T-41, Class 3A
7.50% due 07/25/2032		3,165		3,456
Federal National Mortgage Association, Series 2002-W3, Class A5
7.50% due 11/25/2041		33,464		36,644
Federal National Mortgage Association, Series 2003-18, Class EX
4.00% due 06/25/2017		913,606		938,483
First Horizon Alternative Mortgage Securities, Series 2006-RE1, Class A1
5.50% due 05/25/2035		726,320		465,526
First Horizon Alternative Mortgage Securities, Series 2004-AA2, Class 2A1
3.4445% due 08/25/2034 (b)		1,396,913		1,069,454
First Horizon Alternative Mortgage Securities, Series 2004-AA5, Class B1
5.2185% due 12/25/2034 (b)		125,981		16,902
First Union National Bank Commercial Mortgage Trust, Series 2002-C1, Class A1
5.585% due 02/12/2034		42,623		42,895
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A2
6.07% due 06/10/2038		22,214		23,345
GE Capital Commercial Mortgage Corp., Series 2002-2A, Class A3
5.349% due 08/11/2036		164,809		171,172
GE Capital Commercial Mortgage Corp., Series 2005-C1, Class XC
0.2119% IO due 06/10/2048 (f)		1,659,398		17,204
GE Capital Commercial Mortgage Corp., Series 2005-C2, Class C
5.133% due 05/10/2043 (b)		43,737		21,156
Global Tower Partners Acquisition Partners LLC, Series 2007-1A, Class F
7.0496% due 05/15/2037 (f)		135,000		118,164
GMAC Commercial Mortgage Securities Inc, Series 2004-C2, Class A2
4.76% due 08/10/2038		1,170,540		1,190,945
GMAC Commercial Mortgage Securities, Inc., Series 2003-C2, Class B
5.6844% due 05/10/2040 (b)		1,370,000		1,312,218
GMAC Mortgage Corp. Loan Trust, Series 2006-AR1, Class 2A1
5.6419% due 04/19/2036 (b)		240,821		181,331
Greenpoint Mortgage Funding Trust, Series 2005-AR1, Class A3
0.5456% due 06/25/2045 (b)		117,469		30,278
Greenpoint Mortgage Funding Trust, Series 2005-AR4, Class 4A2
0.6256% due 10/25/2045 (b)		519,732		171,213
Greenpoint Mortgage Funding Trust, Series 2006-AR1, Class A2A
0.6356% due 02/25/2036 (b)		828,903		245,120
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class XC
0.3893% IO due 08/10/2042 (f)		62,932,879		855,963
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class C
5.554% due 03/10/2039		315,000		58,519
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class F
5.633% due 03/10/2039		170,000		19,886
Greenwich Capital Commercial Funding Corp., Series 2002-C1, Class A2
4.112% due 01/11/2017		170,776		173,703
GS Mortgage Securities Corp II, Series 2007-GG10, Class A4
5.9994% due 08/10/2045 (b)		1,100,000		859,931
GS Mortgage Securities Corp. II, Series 2004-GG2, Class E
5.7618% due 08/10/2038 (b)		800,000		329,495
GS Mortgage Securities Corp. II, Series 2005-GG4, Class XC
0.2963% IO due 07/10/2039 (f)		2,021,601		29,711

The accompanying notes are an integral part of the financial statements.

82

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
GS Mortgage Securities Corp. II, Series 2006-GG6, Class AM
5.622% due 04/10/2038	$	1,350,000	$	964,119
GSR Mortgage Loan Trust, Series 2004-14,Class 3A2
5.274% due 12/25/2034 (b)		335,278		244,103
GSR Mortgage Loan Trust, Series 2004-9, Class B1
4.1104% due 08/25/2034 (b)		281,535		85,208
GSR Mortgage Loan Trust, Series 2006-AR1, Class 3A1
5.3497% due 01/25/2036 (b)		667,786		519,968
Harborview Mortgage Loan Trust, Series 2005-16, Class 2A1B
0.6088% due 01/19/2036 (b)		304,441		95,225
Harborview Mortgage Loan Trust, Series 2005-16, Class X3
3.2469% IO due 01/19/2036 (b)		16,010,680		420,280
Harborview Mortgage Loan Trust, Series 2005-8, Class 1X
3.0457% IO due 09/19/2035		4,590,061		158,501
Harborview Mortgage Loan Trust, Series 2006-SB1, Class A1A
1.9008% due 12/19/2036 (b)		621,949		213,834
Harborview Mortgage Loan Trust, Series 2007-3, Class ES
0.35% due 05/19/2047		13,333,077		54,166
Harborview Mortgage Loan Trust, Series 2007-4, Class ES
0.35% due 07/19/2047		13,625,060		59,610
Harborview Mortgage Loan Trust, Series 2007-6, Class ES
0.3425% due 08/19/2037 (f)		10,038,985		40,783
IndyMac Index Mortgage Loan Trust, Series 2004-AR13, Class B1
5.2962% due 01/25/2035		183,701		30,904
IndyMac Index Mortgage Loan Trust, Series 2005-AR18, Class 1X
3.1143% IO due 10/25/2036		10,340,053		310,202
IndyMac Index Mortgage Loan Trust, Series 2005-AR18, Class 2X
2.8201% IO due 10/25/2036		13,575,112		323,088
IndyMac Index Mortgage Loan Trust, Series 2005-AR5, Class B1
4.4931% due 05/25/2035 (b)		295,685		15,706
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2006-LDP8, Class AM
5.44% due 05/15/2045		500,000		355,369
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2005-CB11, Class A3
5.197% due 08/12/2037		1,175,000		1,173,384
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2007-LDPX, Class A2S
5.305% due 01/15/2049		670,000		648,780
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class A3
4.697% due 07/15/2042		2,145,000		2,099,384
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class G
5.4993% due 12/15/2044 (b)		600,000		195,162
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4
5.3443% due 12/15/2044 (b)		2,025,000		1,921,676
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2002-C1, Class A3
5.376% due 07/12/2037		421,734		437,232
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class A4
4.738% due 07/15/2042		1,830,000		1,737,541
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A4B
4.996% due 08/15/2042 (b)		900,000		783,024
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class B
5.129% due 10/15/2042 (b)		145,000		72,856
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4
6.0652% due 04/15/2045 (b)		490,000		428,189
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP8, Class A3B
5.447% due 05/15/2045		845,000		800,553
JPMorgan Mortgage Trust, Series 2006-A7, Class 2A5
5.7745% due 01/25/2037 (b)		625,830		171,236
JPMorgan Mortgage Trust, Series 2005-S2, Class 2A16
6.50% due 09/25/2035		173,603		156,135
JPMorgan Mortgage Trust, Series 2005-S3, Class 2A2
5.50% due 01/25/2021		322,679		307,251
LB-UBS Commercial Mortgage Trust, Series 2000-C4, Class A2
7.37% due 08/15/2026		1,327,287		1,358,192
LB-UBS Commercial Mortgage Trust, Series 2002-C1, Class A4
6.462% due 03/15/2031		29,619		31,497
LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class XCL
0.3721% IO due 01/15/2036		24,436,892		664,842
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class A2
4.31% due 02/15/2030		595,000		594,976
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class XCL
0.2983% IO due 02/15/2040 (f)		722,134		10,046
LB-UBS Commercial Mortgage Trust, Series 2005-C2, Class E
5.4559% due 04/15/2040 (b)		740,000		223,225
LB-UBS Commercial Mortgage Trust, Series 2005-C3, Class G
5.111% due 07/15/2040 (b)(f)		25,472		8,731
LB-UBS Commercial Mortgage Trust, Series 2005-C5, Class A2
4.885% due 09/15/2030		58,053		58,031
LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4
6.0799% due 06/15/2038 (b)		575,000		537,368
Lehman XS Trust, Series 2007-10H, Class		2A2
7.50% due 07/25/2037		1,731,956		991,750

The accompanying notes are an integral part of the financial statements.

83

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Mastr Adjustable Rate Mortgages Trust, Series 2004-13, Class 2A1
4.2097% due 04/21/2034 (b)	$	1,004,457	$	943,393
Mastr Adjustable Rate Mortgages Trust, Series 2004-8, Class 5A1
3.3456% due 08/25/2034 (b)		645,428		502,746
Mastr Adjustable Rate Mortgages Trust, Series 2005-2, Class 2A1
3.8867% due 03/25/2035 (b)		1,105,618		690,083
Mastr Adjustable Rate Mortgages Trust, Series 2006-2, Class 4A1
4.9885% due 02/25/2036 (b)		487,087		431,537
Merrill Lynch Floating Trust, Series 2006-1, Class A2
0.4028% due 06/15/2022 (b)		1,170,000		806,322
Merrill Lynch Mortgage Trust, Series 2004-MKB1, Class A2
4.353% due 02/12/2042		1,366,225		1,375,779
Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4
5.69% due 02/12/2051		1,080,000		832,971
Merrill Lynch Mortgage Trust, Series 2008-C1, Class X
0.7082% IO due 02/14/2051 (f)		33,116,688		620,216
Merrill Lynch Mortgage Trust, Series 2004-KEY2, Class A4
4.864% due 08/12/2039 (b)		31,988		30,469
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class XC
0.0893% IO due 07/12/2038 (f)		216,683,704		883,983
Merrill Lynch Mortgage Trust, Series 2005-CKI1, Class A6
5.4055% due 11/12/2037 (b)		435,000		422,229
Merrill Lynch Mortgage Trust, Series 2005-CKI1, Class A1
5.077% due 11/12/2037		203,728		206,584
Merrill Lynch Mortgage Trust, Series 2006-C1, Class AM
5.8397% due 05/12/2039 (b)		1,000,000		715,418
Merrill Lynch Mortgage Trust, Series 2006-C2, Class X
0.5581% IO due 08/12/2043		20,783,006		311,282
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-2, Class A4
6.1043% due 06/12/2046 (b)		785,000		746,152
MLCC Mortgage Investors, Inc., Series 2007-3, Class M1
5.9203% due 09/25/2037 (b)		289,930		74,920
MLCC Mortgage Investors, Inc., Series 2007-3, Class M2
5.9203% due 09/25/2037 (b)		109,974		19,845
MLCC Mortgage Investors, Inc., Series 2007-3, Class M3
5.9203% due 09/25/2037 (b)		69,984		14,108
Morgan Stanley Capital I, Series 2007-T27, Class A4
5.8029% due 06/11/2042 (b)		275,000		253,184
Morgan Stanley Capital I, Series 2004-T13, Class A2
3.94% due 09/13/2045		10,533		10,628
Morgan Stanley Capital I, Series 2005-HQ6, Class A2A
4.882% due 08/13/2042		1,595,000		1,590,021
Morgan Stanley Capital I, Series 2005-HQ7, Class A2
5.3779% due 11/14/2042 (b)		415,000		420,782
Morgan Stanley Capital I, Series 2005-HQ7, Class A4
5.3779% due 11/14/2042 (b)		415,000		401,146
Morgan Stanley Capital I, Series 2005-HQ7, Class AJ
5.3779% due 11/14/2042 (b)		1,500,000		892,028
Morgan Stanley Capital I, Series 2005-IQ10, Class A4A
5.23% due 09/15/2042 (b)		555,000		517,592
Morgan Stanley Capital I, Series 2005-IQ9, Class X1
0.2591% IO due 07/15/2056 (f)		663,759		13,183
Morgan Stanley Capital I, Series 2005-T17, Class X1
0.2517% IO due 12/13/2041 (f)		1,438,119		16,459
Morgan Stanley Capital I, Series 2006-IQ11, Class AJ
5.9457% due 10/15/2042 (b)		4,300,000		2,237,885
Morgan Stanley Capital I, Series 2006-IQ12, Class E
5.538% due 12/15/2043 (b)		390,000		78,629
Morgan Stanley Capital I, Series 2007-SRR3, Class A
0.5725% due 12/20/2049 (b)(f)		1,000,000		80,000
Morgan Stanley Capital I, Series 2007-SRR3, Class B
0.6725% due 12/20/2049 (b)(f)		1,000,000		50,000
Provident Funding Mortgage Loan Trust, Series 2005-1, Class B1
4.4163% due 05/25/2035 (b)		308,017		66,746
Residential Accredit Loans, Inc., Series 2005-QO4, Class XIO
3.2703% IO due 12/25/2045 (b)		12,259,951		398,448
Residential Accredit Loans, Inc., Series 2007-QS10, Class A1
6.50% due 09/25/2037		692,256		428,766
Residential Accredit Loans, Inc., Series 2005-QA12, Class NB5
5.9493% due 12/25/2035 (b)		423,458		232,158
Residential Accredit Loans, Inc., Series 2007-QS11, Class A1
7.00% due 10/25/2037		582,065		370,157
Residential Asset Securitization Trust, Series 2006-A7CB, Class 2A1
6.50% due 07/25/2036		521,209		385,369
Salomon Brothers Mortgage Securities VII, Series 2000-C3, Class A2
6.592% due 12/18/2033		115,888		119,035
Salomon Brothers Mortgage Securities VII, Series 2001-C1, Class A3
6.428% due 12/18/2035		22,395		23,361
SBA CMBS Trust, Series 2006-1A, Class H
7.389% due 11/15/2036 (f)		980,000		960,400
SBA CMBS Trust, Series 2006-1A, Class J
7.825% due 11/15/2036 (f)		135,000		132,300
Sequoia Mortgage Trust, Series 2005-3, Class A1
0.4725% due 04/15/2032 (b)		4,930		3,210
Structured Asset Securities Corp., Series 2003-6A, Class B1
4.4455% due 03/25/2033 (b)		487,091		168,281

The accompanying notes are an integral part of the financial statements.

84

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Suntrust Adjustable Rate Mortgage Loan Trust, Series 2007-2, Class 4A1
5.7356% due 04/25/2037 (b)	$	1,487,959	$	946,174
Timberstar Trust, Series 2006-1A, Class A
5.668% due 10/15/2036 (f)		900,000		810,000
Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class C
4.985% due 10/15/2041 (b)		1,700,000		834,374
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class E
5.53% due 12/15/2044 (b)		915,000		240,955
Wachovia Bank Commercial Mortgage Trust, Series 2006-C29, Class AJ
5.368% due 11/15/2048 (b)		1,000,000		445,293
Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class XC
0.1387% IO due 03/15/2042 (f)		76,022,242		432,361
Wachovia Bank Commercial Mortgage Trust, Series 2005-C19, Class AJ
4.793% due 05/15/2044		37,517		22,189
WAMU Commercial Mortgage Securities Trust, Series 2007-SL3, Class A
6.1155% due 03/23/2045 (f)		543,508		443,702
WAMU Commercial Mortgage Securities Trust, Series 2006-SL1, Class A
3.0508% due 11/23/2043 (f)		827,862		535,047
WAMU Mortgage Pass Through Certificates, Series 2005-AR13, Class X
2.3509% IO due 10/25/2045		32,476,962		690,135
WAMU Mortgage Pass Through Certificates, Series 2005-AR19, Class A1B3
0.6156% due 12/25/2045 (b)		211,021		82,549
WAMU Mortgage Pass Through Certificates, Series 2006-AR4, Class 1A1B
1.9908% due 05/25/2046 (b)		531,838		160,032
WAMU Mortgage Pass Through Certificates, Series 2005-AR13, Class B1
0.8656% due 10/25/2045 (b)		837,184		87,152
WAMU Mortgage Pass Through Certificates, Series 2005-AR6, Class B1
0.8656% due 04/25/2045 (b)		953,715		91,236
WAMU Mortgage Pass Through Certificates, Series 2007-OA5, Class 1XPP
0.9551% IO due 06/25/2017		13,991,941		109,312
WAMU Mortgage Pass Through Certificates, Series 2007-OA6, Class 1XPP
0.896% IO due 07/25/2047		15,480,061		108,845
Washington Mutual Alternative Mortgage
Pass-Through Certificates, Series 2005-AR19, Class B1
0.9656% due 12/25/2045 (b)		503,714		60,055
Washington Mutual Alternative Mortgage
Pass-Through Certificates, Series 2005-6, Class 1CB
6.50% due 08/25/2035		197,190		141,853
Washington Mutual Mortgage Pass Through
Certificates, Series 2007-OA4, Class XPPP
0.8977% IO due 04/25/2047		11,559,225		79,470
Washington Mutual Mortgage Pass-Through, Series 2005-1, Class 6A1
6.50% due 03/25/2035		14,946		12,546
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR15, Class A3
5.6595% due 10/25/2036 (b)	$	673,989	$	159,573
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $100,563,411)			$	85,382,980
ASSET BACKED SECURITIES - 2.30%
Alesco Preferred Funding, Ltd., Series 14A, Class B
1.2619% due 09/23/2037 (b)(f)		930,000		46,500
American Express Issuance Trust, Series 2008-1, Class A
1.2228% due 12/15/2010 (b)		2,235,000		2,239,684
Amresco Residential Securities Mortgage Loan Trust, Series 1998-1, Class A6
6.51% due 08/25/2027		563		486
Ansonia CDO, Ltd.
5.812% due 07/28/2046 (f)		1,150,000		92,000
Anthracite, Ltd., Series 2002-2A, Class B
5.488% due 12/24/2037 (b)(f)		600,000		390,000
Anthracite, Ltd., Series 2002-CIBA, Class A
0.7175% due 05/24/2017 (b)(f)		660,101		495,075
Arbor Realty Mortgage Securities, Series 2006-1A, Class C
1.1038% due 01/26/2042 (b)(f)		370,000		44,400
Arbor Realty Mortgage Securities, Series 2006-1A, Class F
1.5538% due 01/26/2042 (b)(f)		615,000		30,750
Argent Securities, Inc., Series 2004-W1, Class M3
1.7156% due 03/25/2034 (b)		9,287		2,301
Bank of America Auto Trust, Series 2009-1A, Class A4
3.52% due 06/15/2016		605,000		613,310
BMW Vehicle Lease Trust, Series 2009-1, Class A4
3.66% due 08/15/2013		710,000		727,163
Capital Trust Re CDO, Ltd., Series 2005-1A, Class B
0.7425% due 03/20/2050 (b)(f)		400,000		32,000
Carrington Mortgage Loan Trust, Series 2006-NC4, Class A5
0.3256% due 10/25/2036 (b)		231,891		178,666
Cedarwoods Credit CDO, Ltd., Series 2007-2A, Class B
0.6456% due 02/25/2052 (b)(f)		1,000,000		150,000
Chase Issuance Trust, Series 2008-A1, Class A1
0.7228% due 01/15/2012 (b)		800,000		799,929
CNH Equipment Trust, Series 2008-B, Class A2B
1.2783% due 04/15/2011 (b)		206,977		207,060
Countrywide Asset-Backed Certificates, Series 2006-3, Class 2A2
0.4456% due 06/25/2036 (b)		969,678		762,602
Credit-Based Asset Servicing and Securitization, Series 2006-CB2, Class AF2
5.501% due 12/25/2036		632,932		484,609
Credit-Based Asset Servicing and Securitization, Series 2006-MH1, Class B1
6.25% due 10/25/2036 (f)		460,000		304,018
Crest, Ltd., Series 2000-1A, Class C
7.75% due 08/31/2036 (f)		860,000		172,000
Crest, Ltd., Series 2002-IGA, Class A
0.9519% due 07/28/2017 (b)(f)		1,176,641		764,816

The accompanying notes are an integral part of the financial statements.

85

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Crest, Ltd., Series 2003-1A, Class B1
1.321% due 05/28/2038 (b)(f)	$	600,000	$	168,000
CW Capital Cobalt I, Series 2005-1A, Class A1
0.6731% due 05/25/2045 (b)(f)		442,250		119,805
Dillon Read CMBS CDO, Ltd., Series 2006-1A, Class A3
1.3369% due 12/05/2046 (b)(f)		975,000		10
Dominos Pizza Master Issuer LLC, Series 2007-1, Class M1
7.629% due 04/27/2037 (f)		535,000		331,700
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2
5.261% due 04/25/2037 (f)		715,000		581,592
Equity One ABS, Inc., Series 2004-2, Class AV2
0.5156% due 07/25/2034 (b)		647		426
GSAA Home Equity Trust, Series 2006-10, Class AF3
5.9846% due 06/25/2036 (b)		1,000,000		533,897
Highland Park CDO, Ltd., Series 2006-1A, Class A2
0.7931% due 11/25/2051 (b)(f)		1,230,000		123,000
JER CDO, Series 2006-2A, Class AFL
0.5956% due 03/25/2045 (b)(f)		668,799		33,440
Lehman XS Trust, Series 2005-5N, Class 3A2
0.6256% due 11/25/2035 (b)		593,685		162,646
Lehman XS Trust, Series 2005-7N, Class 1A1B
0.5656% due 12/25/2035 (b)		768,980		209,350
Lehman XS Trust, Series 2006-2N, Class 1A2
0.6056% due 02/25/2046 (b)		1,320,930		281,175
LNR CDO, Ltd., Series 2006-1A, Class BFL
0.8106% due 05/28/2043 (b)(f)		700,000		7,000
Newcastle CDO, Ltd., Series 2005-7A, Class 2FL
0.7675% due 12/24/2050 (b)(f)		570,000		28,500
North Street Referenced Linked Notes, Series 2000-1A, Class C
2.2413% due 07/30/2010 (b)(f)		500,000		5,000
N-Star Real Estate CDO, Ltd.
0.6128% due 07/27/2040 (b)(f)		700,000		280,000
N-Star Real Estate CDO, Ltd., Series 2006-7A, Class B
0.6456% due 06/22/2051 (b)(f)		900,000		45,000
N-Star Real Estate CDO, Ltd., Series 2006-8A, Class E
1.0306% due 02/01/2041 (b)(f)		475,000		14,250
Ownit Mortgage Loan, Series 2006-1, Class AF2
5.29% due 12/25/2036		762,093		434,422
Ownit Mortgage Loan, Series 2006-2, Class A2B
5.6329% due 01/25/2037		643,150		486,562
Prima Capital, Ltd., Series 2006-CR1A, Class A1
5.417% due 12/25/2048		696,537		403,991
RAIT Preferred Funding, Ltd., Series 2007-2A, Class B
1.0656% due 06/25/2045 (b)(f)		685,000		95,900
Renaissance Home Equity Loan Trust, Series 2005-2, Class AF3
4.499% due 07/25/2035		87,320		82,828
Renaissance Home Equity Loan Trust, Series 2005-2, Class AF4
4.934% due 07/25/2035		335,000		174,848
Wells Fargo Home Equity Trust, Series 2004-2, Class AI5
4.89% due 05/25/2034 (b)	$	49,000	$	43,353
Residential Accredit Loans, Inc., Series 2004-QS16, Class 1A1
5.50% due 12/25/2034		13,382		11,307
TOTAL ASSET BACKED SECURITIES (Cost $28,516,808)			$	13,195,371
SUPRANATIONAL OBLIGATIONS - 0.05%
Honduras - 0.01%
Central American Bank for Economic Integration
6.75% due 04/15/2013 (f)		12,000		13,020
Venezuela - 0.04%
Corporacion Andina de Fomento
5.20% due 05/21/2013		214,000		218,033
6.875% due 03/15/2012		20,000		21,258
				239,291
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $249,302)			$	252,311
PREFERRED STOCKS - 0.34%
Banking - 0.08%
Bank of America Corp., Series MER, 8.625%		20,775		467,437
Financial Services - 0.08%
Vale Capital II, 6.75%		7,375		446,999
Food & Beverages - 0.06%
Ocean Spray Cranberries, Inc., 6.25% (f)		5,034		335,076
Mining - 0.06%
Freeport-McMoRan Copper & Gold, Inc., 6.75%		3,710		354,305
Telephone - 0.06%
Telephone & Data Systems, Inc., 7.60%		16,000		355,040
TOTAL PREFERRED STOCKS (Cost $2,043,209)			$	1,958,857
WARRANTS - 0.00%
Metal & Metal Products - 0.00%
New Gold, Inc.
(Expiration date 06/28/2017, strike price CAD 15.00) *		3,852		1,091
TOTAL WARRANTS (Cost $0)			$	1,091
REPURCHASE AGREEMENTS - 3.26%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $18,698,036 on 09/01/2009, collateralized by $18,100,000 Federal National Mortgage Association, 3.625% due 02/12/2013 (valued at $19,072,875, including interest)	$	18,698,000	$	18,698,000
TOTAL REPURCHASE AGREEMENTS (Cost $18,698,000)			$	18,698,000

The accompanying notes are an integral part of the financial statements.

86

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Active Bond Fund (continued)
	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS - 2.07%
Federal Home Loan Bank Discount Notes
0.08% due 09/01/2009	$	2,600,000	$	2,600,000
1.00% due 09/14/2009		9,280,000		9,279,598
TOTAL SHORT TERM INVESTMENTS (Cost $11,879,598)			$	11,879,598
Total Investments (Active Bond Fund) (Cost $596,546,121) - 100.36%			$	574,942,205
Other assets and liabilities, net - (0.36)%				(2,063,243	)
TOTAL NET ASSETS - 100.00%			$	572,878,962

All Cap Core Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 90.46%
Aerospace - 4.38%
General Dynamics Corp.		67,923	$	4,020,362
Lockheed Martin Corp.		95,176		7,136,297
Northrop Grumman Corp.		142,609		6,960,745
Raytheon Company		41,400		1,953,252
United Technologies Corp.		9,910		588,258
				20,658,914
Agriculture - 1.56%
Archer-Daniels-Midland Company		250,729		7,228,517
Bunge, Ltd.		2,300		154,123
				7,382,640
Apparel & Textiles - 0.04%
Carter’s, Inc. *		8,100		203,796
Auto Parts - 0.09%
Genuine Parts Company		7,500		277,800
WABCO Holdings, Inc.		6,781		129,3 14
				407,114
Automobiles - 0.01%
Asbury Automotive Group, Inc. *		2,800		35,000
Banking - 2.41%
Bank of America Corp.		563,303		9,908,500
Bank of New York Mellon Corp.		39,300		1,163,673
First Bancorp		1,300		22,802
Regions Financial Corp. (a)		50,500		295,930
				11,390,905
Business Services - 4.38%
Brinks Company		30,504		803,780
Computer Sciences Corp. *		94,261		4,604,650
Fluor Corp.		65,482		3,463,998
Global Sources, Ltd. *		7,966		54,647
Manpower, Inc.		16,000		827,200
Pre-Paid Legal Services, Inc. *		700		32,088
R.R. Donnelley & Sons Company		243,736		4,348,250
SAIC, Inc. *		352,624		6,520,018
				20,654,631
Cable & Television - 2.57%
Comcast Corp., Class A		285,507		4,373,967
Scripps Networks Interactive, Inc., Class A		16,900	$	548,743
Time Warner Cable, Inc. *		195,360		7,212,691
				12,135,401
Cellular Communications - 0.03%
USA Mobility, Inc. *		11,800		150,214
Chemicals - 1.48%
Ashland, Inc.		84,700		3,106,796
Cabot Corp.		27,600		546,204
Cytec Industries, Inc.		36,214		1,046,223
Eastman Chemical Company		2,800		146,048
Lubrizol Corp.		29,500		1,879,740
Omnova Solutions, Inc. *		18,400		86,848
Spartech Corp.		14,000		161,560
				6,973,419
Coal - 0.11%
Walter Energy, Inc.		9,800		508,718
Commercial Services - 0.17%
Brink’s Home Security Holdings, Inc. *		25,873		809,049
Computers & Business Equipment - 5.63%
Apple, Inc. *		54,839		9,224,468
Ingram Micro, Inc., Class A *		105,031		1,760,320
International Business Machines Corp.		107,706		12,714,693
NCR Corp. *		78,100		1,041,073
Synaptics, Inc. * (a)		10,200		262,956
Tech Data Corp. *		14,794		563,652
Western Digital Corp. *		29,025		994,977
				26,562,139
Construction & Mining Equipment - 0.38%
Rowan Companies, Inc.		87,683		1,815,915
Cosmetics & Toiletries - 2.94%
Colgate-Palmolive Company		77,587		5,640,575
Kimberly-Clark Corp.		122,700		7,418,442
Procter & Gamble Company		15,422		834,484
				13,893,501
Crude Petroleum & Natural Gas - 1.93%
Devon Energy Corp.		114,700		7,040,286
Marathon Oil Corp.		66,200		2,043,594
				9,083,880
Domestic Oil - 1.32%
Encore Aquisition Company *		65,902		2,483,847
Helix Energy Solutions Group, Inc. *		100,400		1,174,680
Mariner Energy, Inc. *		37,200		451,236
Oil States International, Inc. *		72,324		2,131,388
				6,241,151
Drugs & Health Care - 0.14%
Accelrys, Inc. *		4,800		27,552
China Sky One Medical, Inc. * (a)		3,600		46,656
Quidel Corp. *		38,400		592,896
				667,104
Educational Services - 0.08%
Apollo Group, Inc., Class A *		5,600		362,992

The accompanying notes are an integral part of the financial statements.

87

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Core Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Educational Services (continued)
Lincoln Educational Services Corp. * (a)		800	$	17,744
				380,736
Electrical Equipment - 0.00%
Aaon, Inc.		800		16,704
Electrical Utilities - 2.44%
Dominion Resources, Inc.		50,245		1,662,105
DTE Energy Company		26,453		920,035
Edison International		146,764		4,903,385
Exelon Corp.		57,900		2,896,158
FirstEnergy Corp.		14,600		658,898
Mirant Corp. *		26,799		451,563
				11,492,144
Electronics - 3.94%
Arrow Electronics, Inc. *		177,156		4,896,592
Avnet, Inc. *		257,782		6,869,890
Garmin, Ltd. (a)		188,800		6,205,856
Multi-Fineline Electronix, Inc. *		12,500		345,500
Vishay Intertechnology, Inc. *		32,300		260,661
				18,578,499
Energy - 0.86%
NRG Energy, Inc. *		150,500		4,040,925
Financial Services - 6.61%
Citigroup, Inc.		827,300		4,136,500
Discover Financial Services		386,900		5,319,875
Franklin Resources, Inc.		58,300		5,441,139
Goldman Sachs Group, Inc.		39,842		6,592,257
JPMorgan Chase & Company		54,986		2,389,692
MasterCard, Inc., Class A		5,700		1,154,991
Morgan Stanley		38,100		1,103,376
Synovus Financial Corp.		160,400		593,480
Wells Fargo & Company		83,000		2,284,160
Western Union Company		119,800		2,161,192
				31,176,662
Food & Beverages - 1.48%
Sysco Corp.		273,155		6,962,721
Forest Products - 0.05%
Rayonier, Inc.		5,400		231,930
Furniture & Fixtures - 0.03%
La-Z-Boy, Inc.		15,000		127,050
Healthcare Products - 1.92%
Cypress Biosciences, Inc. *		89,800		625,008
Herbalife, Ltd.		25,920		784,858
Johnson & Johnson		79,780		4,821,903
Mead Johnson Nutrition Company		71,600		2,839,656
				9,071,425
Healthcare Services - 3.53%
Centene Corp. *		4,400		76,164
Coventry Health Care, Inc. *		224,627		4,903,607
Gentiva Health Services, Inc. *		18,900		416,745
Magellan Health Services, Inc. *		8,400		269,556
McKesson Corp.		65,600		3,730,016
Medco Health Solutions, Inc. *		131,600	$	7,266,952
				16,663,040
Hotels & Restaurants - 1.84%
CEC Entertainment, Inc. *		20,900		559,075
McDonald’s Corp.		144,038		8,100,697
				8,659,772
Household Products - 0.11%
Kirklands, Inc. *		11,900		168,504
Tupperware Brands Corp.		9,700		358,803
				527,307
Industrials - 0.89%
General Electric Company		33,700		468,430
Shaw Group, Inc. *		126,500		3,710,245
				4,178,675
Insurance - 2.37%
Aetna, Inc.		121,625		3,466,312
AFLAC, Inc.		17,200		698,664
Allied World Assurance Holdings, Ltd.		53,223		2,465,822
PartnerRe, Ltd.		5,200		384,332
Prudential Financial, Inc.		25,600		1,294,848
The Travelers Companies, Inc.		57,315		2,889,822
				11,199,800
International Oil - 4.93%
Anadarko Petroleum Corp.		47,600		2,516,612
ConocoPhillips Company		131,866		5,937,926
Exxon Mobil Corp.		122,200		8,450,130
Murphy Oil Corp.		111,093		6,332,301
				23,236,969
Internet Content - 0.70%
Google, Inc., Class A *		5,086		2,348,053
OpenTable, Inc. *		1,000		27,630
Sohu.com, Inc. * (a)		15,277		933,425
				3,309,108
Internet Retail - 0.78%
Amazon.com, Inc. *		45,404		3,686,351
Internet Service Provider - 0.06%
Earthlink, Inc. *		31,800		264,576
Internet Software - 0.94%
Symantec Corp. *		183,108		2,768,593
VeriSign, Inc. * (a)		79,400		1,682,486
				4,451,079
Life Sciences - 0.02%
Dawson Geophysical Company *		3,400		84,286
Manufacturing - 0.47%
Carlisle Companies, Inc.		21,900		722,481
Smith & Wesson Holding Corp. * (a)		38,600		207,668
Trinity Industries, Inc.		82,709		1,306,802
				2,236,951
Metal & Metal Products - 0.98%
Reliance Steel & Aluminum Company		38,600		1,425,884

The accompanying notes are an integral part of the financial statements.

88

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Core Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Metal & Metal Products (continued)
Timken Company		151,409	$	3,196,244
				4,622,128
Mining - 0.63%
Cliffs Natural Resources, Inc.		118,153		2,990,452
Multimedia - 0.68%
Time Warner, Inc.		115,044		3,210,878
Paper - 1.61%
Clearwater Paper Corp. *		3,300		152,295
International Paper Company		323,636		7,427,446
				7,579,741
Petroleum Services - 0.55%
Diamond Offshore Drilling, Inc. (a)		22,400		2,003,008
Petroleum Development Corp. *		6,300		86,247
World Fuel Services Corp.		11,300		507,822
				2,597,077
Pharmaceuticals - 6.98%
Abbott Laboratories		113,968		5,154,773
Eli Lilly & Company (a)		186,234		6,231,390
Enzon Pharmaceuticals, Inc. * (a)		37,900		271,743
Gilead Sciences, Inc. *		158,689		7,150,526
Merck & Company, Inc. (a)		72,457		2,349,781
PDL BioPharma, Inc.		77,400		700,470
Pfizer, Inc.		662,494		11,063,650
				32,922,333
Publishing - 0.21%
Gannett Company, Inc.		48,500		419,040
McGraw-Hill Companies, Inc.		16,300		547,843
				966,883
Real Estate - 1.25%
Boston Properties, Inc., REIT		6,155		372,870
Equity Residential, REIT		25,174		687,502
Health Care, Inc., REIT		11,340		484,331
Liberty Property Trust, REIT		12,866		421,619
ProLogis, REIT (a)		20,400		226,848
Public Storage, Inc., REIT		14,100		994,755
Regency Centers Corp., REIT		10,629		356,603
Simon Property Group, Inc., REIT		24,882		1,582,993
Vornado Realty Trust, REIT		13,234		761,220
				5,888,741
Retail - 0.66%
Barnes & Noble, Inc. (a)		126,400		2,615,216
The Dress Barn, Inc. * (a)		30,700		498,261
				3,113,477
Retail Grocery - 0.29%
The Kroger Company		63,300		1,366,647
Retail Trade - 2.81%
Cato Corp., Class A		1,100		18,788
Ross Stores, Inc.		93,000		4,337,520
Sonic Automotive, Inc. (a)		17,900		229,478
The Buckle, Inc. (a)		12,800		338,560
Wal-Mart Stores, Inc.		163,646		8,324,672
				13,249,018
Semiconductors - 0.69%
Tessera Technologies, Inc. *		7,400	$	185,962
Texas Instruments, Inc.		96,014		2,360,984
Volterra Semiconductor Corp. *		40,500		717,255
				3,264,201
Software - 1.08%
Intuit, Inc. *		15,200		422,104
Microsoft Corp.		189,393		4,668,538
				5,090,642
Telecommunications Equipment &
Services - 0.57%
Plantronics, Inc.		2,100		50,169
QUALCOMM, Inc.		56,951		2,643,665
				2,693,834
Telephone - 4.01%
AT&T, Inc.		483,071		12,583,999
Harris Corp.		37,700		1,309,321
U.S. Cellular Corp. *		23,839		870,362
Verizon Communications, Inc.		134,122		4,163,147
				18,926,829
Tobacco - 2.52%
Altria Group, Inc.		63,071		1,152,938
Lorillard, Inc.		89,283		6,497,124
Philip Morris International, Inc.		76,220		3,484,016
Reynolds American, Inc.		16,800		767,928
				11,902,006
Transportation - 0.10%
Marten Transport, Ltd. *		3,200		54,272
Overseas Shipholding Group, Inc. (a)		12,400		438,588
				492,860
Trucking & Freight - 1.22%
Ryder Systems, Inc.		58,818		2,235,084
United Parcel Service, Inc., Class B (a)		66,100		3,533,706
				5,768,790
TOTAL COMMON STOCKS (Cost $383,287,186)			$	426,796,738
SHORT TERM INVESTMENTS - 6.77%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		2,398,321	$	24,010,310
U.S. Treasury Bills
0.125% due 09/17/2009 ***		7,940,000		7,939,690
TOTAL SHORT TERM INVESTMENTS (Cost $31,940,680)			$	31,950,000

The accompanying notes are an integral part of the financial statements.

89

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Core Fund (continued)
	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 7.70%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $36,326,071 on 09/01/2009, collateralized by $32,305,000 Federal Home Loan Mortgage Corp., 5.00% due 02/16/2017 (valued at $35,401,757, including interest) and $1,605,000 Federal National Mortgage Association, 5.625% due 09/18/2017 (valued at $1,651,144, including interest)	$	36,326,000	$	36,326,000
TOTAL REPURCHASE AGREEMENTS (Cost $36,326,000)			$	36,326,000
Total Investments (All Cap Core Fund) (Cost $451,553,866) - 104.93%			$	495,072,738
Other assets and liabilities, net - (4.93)%				(23,281,842	)
TOTAL NET ASSETS - 100.00%			$	471,790,896

All Cap Growth Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.07%
Aerospace - 6.42%
General Dynamics Corp.		6,405	$	379,112
Goodrich Corp.		7,425		409,563
Lockheed Martin Corp.		15,244		1,142,995
Raytheon Company		30,193		1,424,506
Rockwell Collins, Inc.		11,575		532,913
United Technologies Corp.		30,541		1,812,914
				5,702,003
Agriculture - 0.75%
Monsanto Company		7,987		669,950
Apparel & Textiles - 0.51%
NIKE, Inc., Class B		8,165		452,259
Auto Parts - 1.36%
Autoliv, Inc.		2,693		86,364
AutoZone, Inc. *		2,151		316,735
BorgWarner, Inc.		2,924		86,755
Gentex Corp.		6,990		101,984
Johnson Controls, Inc.		24,979		618,730
				1,210,568
Biotechnology - 1.08%
Amgen, Inc. *		11,243		671,657
Biogen Idec, Inc. *		5,725		287,452
				959,109
Business Services - 1.41%
Accenture, Ltd., Class A		12,846		423,918
Fluor Corp.		10,150		536,935
Robert Half International, Inc.		11,085		291,425
				1,252,278
Chemicals - 0.19%
Potash Corp. of Saskatchewan, Inc.		1,903	$	168,434
Commercial Services - 0.10%
Morningstar, Inc. * (a)		1,992		88,246
Computers & Business Equipment - 9.73%
Apple, Inc. *		9,902		1,665,615
Cisco Systems, Inc. *		58,366		1,260,706
Cognizant Technology Solutions Corp., Class A *		31,680		1,104,998
Hewlett-Packard Company		15,395		691,082
International Business Machines Corp.		14,926		1,762,014
Research In Motion, Ltd. *		29,517		2,156,512
				8,640,927
Cosmetics & Toiletries - 1.93%
Colgate-Palmolive Company		11,605		843,683
Procter & Gamble Company		16,152		873,985
				1,717,668
Crude Petroleum & Natural Gas - 2.85%
Apache Corp.		5,045		428,573
Devon Energy Corp.		11,840		726,739
EQT Corp.		8,164		323,866
Occidental Petroleum Corp.		10,121		739,845
XTO Energy, Inc.		8,061		311,155
				2,530,178
Drugs & Health Care - 0.45%
Shire, Ltd.		23,911		396,379
Educational Services - 1.28%
Apollo Group, Inc., Class A *		17,541		1,137,008
Electronics - 1.29%
Flextronics International, Ltd. *		31,253		185,330
Thermo Fisher Scientific, Inc. *		9,704		438,718
Tyco Electronics, Ltd. *		22,834		521,072
				1,145,120
Financial Services - 5.90%
Charles Schwab Corp.		35,528		641,636
CME Group, Inc.		2,311		672,593
IntercontinentalExchange, Inc. *		6,052		567,678
JPMorgan Chase & Company		11,836		514,392
MasterCard, Inc., Class A		9,136		1,851,228
T. Rowe Price Group, Inc.		7,156		324,310
Visa, Inc.		9,442		671,326
				5,243,163
Food & Beverages - 4.13%
General Mills, Inc.		11,327		676,562
Kellogg Company		13,474		634,491
PepsiCo, Inc.		25,859		1,465,429
The Coca-Cola Company		18,305		892,735
				3,669,217
Healthcare Products - 8.23%
Baxter International, Inc.		51,742		2,945,155
Becton, Dickinson & Company		12,921		899,560
Johnson & Johnson		26,130		1,579,297
Medtronic, Inc.		39,351		1,507,143

The accompanying notes are an integral part of the financial statements.

90

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products (continued)
Varian Medical Systems, Inc. * (a)		8,868	$	381,945
				7,313,100
Healthcare Services - 2.43%
Express Scripts, Inc. *		6,640		479,541
Laboratory Corp. of America Holdings *		4,463		311,473
McKesson Corp.		5,738		326,263
Medco Health Solutions, Inc. *		5,924		327,123
UnitedHealth Group, Inc.		25,402		711,256
				2,155,656
Hotels & Restaurants - 1.60%
McDonald’s Corp.		19,842		1,115,914
Yum! Brands, Inc.		8,985		307,736
				1,423,650
Household Products - 0.51%
Clorox Company		7,615		449,970
Industrial Machinery - 1.30%
Cameron International Corp. *		14,138		504,868
Valmont Industries, Inc.		2,441		200,967
W.W. Grainger, Inc.		5,168		452,045
				1,157,880
Insurance - 1.52%
ACE, Ltd.		15,333		800,076
Chubb Corp.		11,184		552,378
				1,352,454
International Oil - 1.05%
Exxon Mobil Corp.		13,517		934,701
Internet Content - 2.16%
Google, Inc., Class A *		4,159		1,920,085
Internet Retail - 0.59%
Priceline.com, Inc. *		3,431		528,305
Internet Software - 1.71%
Check Point Software Technologies, Ltd. *		26,925		750,400
McAfee, Inc. *		8,411		334,590
Shanda Interactive Entertainment, Ltd. * (a)		3,844		188,202
VeriSign, Inc. *		11,454		242,710
				1,515,902
Manufacturing - 1.90%
Honeywell International, Inc.		26,470		973,037
Ingersoll-Rand PLC		23,034		711,520
				1,684,557
Mining - 1.16%
BHP Billiton, Ltd.		11,734		366,430
Freeport-McMoRan Copper & Gold, Inc., Class B		10,593		667,147
				1,033,577
Petroleum Services - 1.43%
Baker Hughes, Inc.		8,033		276,737
Schlumberger, Ltd.		5,497		308,931
Transocean, Ltd. *		4,990		378,442
Weatherford International, Ltd. *		15,298		305,195
				1,269,305
Pharmaceuticals - 3.36%
Abbott Laboratories		36,590		1,654,966
Gilead Sciences, Inc. *		29,533		1,330,757
				2,985,723
Railroads & Equipment - 0.89%
Norfolk Southern Corp.		7,780		356,868
Union Pacific Corp.		7,270		434,819
				791,687
Retail Grocery - 1.92%
The Kroger Company		78,821		1,701,745
Retail Trade - 8.71%
Aeropostale, Inc. *		4,698		183,927
Bed Bath & Beyond, Inc. * (a)		9,430		344,006
Best Buy Company, Inc.		12,111		439,387
Costco Wholesale Corp.		17,998		917,538
Home Depot, Inc. (a)		33,180		905,482
J.C. Penney Company, Inc.		15,145		454,956
Kohl’s Corp. *		22,834		1,178,006
Lowe’s Companies, Inc.		48,979		1,053,049
The Gap, Inc.		69,474		1,365,164
Wal-Mart Stores, Inc.		17,683		899,534
				7,741,049
Sanitary Services - 1.45%
Waste Management, Inc.		43,001		1,287,020
Semiconductors - 6.54%
Altera Corp.		37,384		718,147
Applied Materials, Inc.		22,810		300,636
ASML Holding NV		26,036		715,834
Intel Corp.		57,664		1,171,732
KLA-Tencor Corp.		10,032		312,998
Netlogic Microsystems, Inc. *		2,214		97,217
NVIDIA Corp. *		23,201		336,879
PMC-Sierra, Inc. *		10,025		91,027
QLogic Corp. *		12,629		199,664
Taiwan Semiconductor
Manufacturing Company, Ltd., SADR		64,908		694,516
Texas Instruments, Inc.		19,661		483,464
Xilinx, Inc.		30,925		687,772
				5,809,886
Software - 3.04%
Adobe Systems, Inc. *		28,422		893,019
Microsoft Corp.		73,401		1,809,335
				2,702,354
Steel - 0.33%
United States Steel Corp.		6,615		289,605
Telecommunications Equipment &
Services - 5.39%
Amdocs, Ltd. *		17,279		420,225
Corning, Inc.		40,258		607,091
KDDI Corp.		337		1,914,867
QUALCOMM, Inc.		39,822		1,848,537
				4,790,720

The accompanying notes are an integral part of the financial statements.

91

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Transportation - 0.47%
Expeditors International of Washington, Inc.		12,695	$	414,619
TOTAL COMMON STOCKS (Cost $75,157,146)			$	86,236,057
SHORT TERM INVESTMENTS - 2.03%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		179,692	$	1,798,951
TOTAL SHORT TERM INVESTMENTS (Cost $1,798,559)			$	1,798,951
REPURCHASE AGREEMENTS - 3.04%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $2,700,005 on 09/01/2009, collateralized by $2,695,000 Federal National Mortgage Association, 5.13% due 12/18/2017 (valued at $2,755,638, including interest)	$	2,700,000	$	2,700,000
TOTAL REPURCHASE AGREEMENTS (Cost $2,700,000)			$	2,700,000
Total Investments (All Cap Growth Fund) (Cost $79,655,705) - 102.14%			$	90,735,008
Other assets and liabilities, net - (2.14)%				(1,898,548	)
TOTAL NET ASSETS - 100.00%			$	88,836,460

All Cap Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 98.65%
Advertising - 1.00%
Omnicom Group, Inc.		95,900	$	3,483,088
Aerospace - 2.29%
Curtiss-Wright Corp.		13,500		439,695
General Dynamics Corp.		65,084		3,852,322
United Technologies Corp.		62,139		3,688,571
				7,980,588
Air Travel - 0.44%
Continental Airlines, Inc., Class B *		26,788		355,477
Southwest Airlines Company		142,679		1,167,114
				1,522,591
Apparel & Textiles - 0.52%
Guess?, Inc.		51,394		1,800,846
Auto Parts - 1.23%
Autoliv, Inc. *		45,387		1,455,561
BorgWarner, Inc. * (a)		31,800		943,506
WABCO Holdings, Inc.		98,300		1,874,581
				4,273,648
Automobiles - 3.50%
Ford Motor Company *		688,600		5,233,360
Honda Motor Company, Ltd., ADR		187,208		5,865,227
PACCAR, Inc.		30,100		1,088,717
				12,187,304
Banking - 7.36%
Bank of America Corp.		282,200		4,963,898
Bank of New York Mellon Corp.		161,966		4,795,813
City National Corp. (a)		74,400		2,938,800
Commerce Bancshares, Inc.		74,813		2,747,882
Cullen Frost Bankers, Inc.		87,381		4,306,136
M&T Bank Corp. (a)		26,500		1,636,640
Northern Trust Corp.		47,279		2,763,930
PNC Financial Services Group, Inc.		33,700		1,435,283
				25,588,382
Biotechnology - 3.23%
Amgen, Inc. *		187,883		11,224,130
Building Materials & Construction - 0.09%
Quanex Building Products Corp.		22,985		309,608
Business Services - 1.28%
Accenture, Ltd., Class A		53,772		1,774,476
Jacobs Engineering Group, Inc. *		54,100		2,379,318
URS Corp. *		6,920		299,152
				4,452,946
Chemicals - 0.61%
Celanese Corp., Series A		83,000		2,114,010
Computers & Business Equipment - 1.20%
EMC Corp. *		263,443		4,188,744
Crude Petroleum & Natural Gas - 3.21%
Apache Corp.		22,625		1,921,994
EQT Corp.		78,022		3,095,132
Noble Energy, Inc.		27,343		1,653,158
Southwestern Energy Company *		31,100		1,146,346
XTO Energy, Inc.		86,890		3,353,954
				11,170,584
Electrical Equipment - 0.20%
Anixter International, Inc. * (a)		19,989		701,214
Electronics - 1.46%
Thermo Fisher Scientific, Inc. *		112,300		5,077,083
Financial Services - 11.68%
Capital One Financial Corp.		102,078		3,806,489
Charles Schwab Corp. (a)		228,701		4,130,340
GATX Corp.		26,700		732,381
JPMorgan Chase & Company		146,832		6,381,319
Lazard, Ltd., Class A		167,946		6,528,061
MasterCard, Inc., Class A		17,111		3,467,202
Morgan Stanley		174,200		5,044,832
Raymond James Financial, Inc. (a)		56,100		1,276,275
State Street Corp.		128,514		6,744,415
Wells Fargo & Company		92,046		2,533,106
				40,644,420
Food & Beverages - 1.57%
Diageo PLC, SADR		49,150		3,049,266
J.M. Smucker Company		45,900		2,399,193
				5,448,459

The accompanying notes are an integral part of the financial statements.

92

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Gas & Pipeline Utilities - 2.56%
El Paso Corp.		433,950	$	4,005,358
Williams Companies, Inc.		298,700		4,910,628
				8,915,986
Gold - 1.86%
Barrick Gold Corp.		186,317		6,465,200
Healthcare Products - 3.16%
Johnson & Johnson		38,200		2,308,808
Patterson Companies, Inc. *		169,400		4,612,762
Varian Medical Systems, Inc. * (a)		94,525		4,071,192
				10,992,762
Healthcare Services - 5.91%
DaVita, Inc. *		169,129		8,745,660
Humana, Inc. *		116,333		4,153,088
McKesson Corp.		134,873		7,668,879
				20,567,627
Holdings Companies/Conglomerates - 1.32%
Berkshire Hathaway, Inc., Class B *		1,400		4,600,400
Hotels & Restaurants - 3.91%
Marriott International, Inc., Class A (a)		204,620		4,890,408
Starwood Hotels & Resorts Worldwide, Inc. (a)		111,461		3,319,309
Wynn Resorts, Ltd. * (a)		99,881		5,406,558
				13,616,275
Household Products - 0.13%
Fortune Brands, Inc.		11,100		441,891
Industrial Machinery - 4.11%
Cameron International Corp. *		50,052		1,787,357
Donaldson Company, Inc.		12,900		484,653
ITT Corp.		124,423		6,231,104
Kennametal, Inc.		87,644		1,932,550
Parker-Hannifin Corp.		73,666		3,584,588
Robbins & Myers, Inc.		12,442		288,903
				14,309,155
Insurance - 3.55%
ACE, Ltd.		24,087		1,256,860
Aon Corp.		90,958		3,798,406
Markel Corp. *		7,104		2,336,222
MetLife, Inc.		131,240		4,955,622
				12,347,110
International Oil - 1.59%
EnCana Corp.		106,477		5,535,739
Internet Software - 0.55%
McAfee, Inc. *		47,999		1,909,400
Leisure Time - 1.00%
International Game Technology		165,538		3,463,055
Manufacturing - 3.88%
AptarGroup, Inc.		24,000		825,120
Eaton Corp.		97,200		5,243,940
Hexcel Corp. *		55,500		603,840
Honeywell International, Inc.		77,487		2,848,422
Roper Industries, Inc.		27,600		1,307,688
SPX Corp.		48,200		2,683,776
				13,512,786
Metal & Metal Products - 0.49%
Reliance Steel & Aluminum Company		46,000		1,699,240
Petroleum Services - 3.28%
Halliburton Company		152,449		3,614,566
Helmerich & Payne, Inc.		25,800		863,268
Schlumberger, Ltd.		47,544		2,671,973
Smith International, Inc.		93,641		2,581,682
Superior Energy Services, Inc. *		91,293		1,664,271
				11,395,760
Pharmaceuticals - 5.80%
Abbott Laboratories		157,963		7,144,667
AmerisourceBergen Corp.		261,152		5,565,149
Onyx Pharmaceuticals, Inc. *		111,400		3,572,598
Warner Chilcott PLC, Class A * (a)		92,400		1,882,188
Watson Pharmaceuticals, Inc. *		56,600		1,997,414
				20,162,016
Railroads & Equipment - 2.84%
Canadian National Railway Company		69,324		3,346,269
Kansas City Southern * (a)		273,400		6,534,260
				9,880,529
Retail Grocery - 0.70%
The Kroger Company		112,964		2,438,893
Retail Trade - 4.92%
American Eagle Outfitters, Inc.		160,091		2,161,228
Children’s Place Retail Stores, Inc. *		50,100		1,519,533
Costco Wholesale Corp.		12,361		630,164
Fossil, Inc. *		90,302		2,291,865
Kohl’s Corp. *		3,980		205,328
Lowe’s Companies, Inc.		205,391		4,415,907
Nordstrom, Inc. (a)		44,800		1,256,192
Target Corp.		43,900		2,063,300
TJX Companies, Inc.		47,999		1,725,564
Wal-Mart Stores, Inc.		17,000		864,790
				17,133,871
Semiconductors - 0.25%
Xilinx, Inc.		38,784		862,556
Software - 4.36%
Activision Blizzard, Inc. *		120,200		1,395,522
Adobe Systems, Inc. *		178,343		5,603,537
Autodesk, Inc. *		70,189		1,644,528
Intuit, Inc. *		44,908		1,247,095
Microsoft Corp.		213,700		5,267,705
				15,158,387
Steel - 1.13%
Nucor Corp.		49,300		2,195,822
United States Steel Corp. (a)		39,700		1,738,066
				3,933,888
Transportation - 0.32%
Bristow Group, Inc. *		8,953		261,428

The accompanying notes are an integral part of the financial statements.

93

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

All Cap Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Transportation (continued)
Kirby Corp. *		23,300	$	863,265
				1,124,693
Trucking & Freight - 0.16%
Heartland Express, Inc.		39,800		563,568
TOTAL COMMON STOCKS (Cost $306,447,670)			$	343,198,432
SHORT TERM INVESTMENTS - 8.70%
John Hancock Collateral Investment Trust, 0.3900% (c) (g)		3,024,243	$	30,276,606
TOTAL SHORT TERM INVESTMENTS (Cost $30,268,228)			$	30,276,606
REPURCHASE AGREEMENTS - 1.15%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $3,997,008 on 09/01/2009, collateralized by $4,055,000 Federal National Mortgage Association, 4.72% due 01/22/2018 (valued at $4,080,344, including interest)	$	3,997,000	$	3,997,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,997,000)			$	3,997,000
Total Investments (All Cap Value Fund) (Cost $340,712,898) - 108.50%			$	377,472,038
Other assets and liabilities, net - (8.50)%				(29,556,104	)
TOTAL NET ASSETS - 100.00%			$	347,915,934

Alpha Opportunities Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 96.41%
Advertising - 0.06%
Monster Worldwide, Inc. *		22,848	$	370,595
Aerospace - 0.69%
BE Aerospace, Inc. *		226,250		3,875,662
Spirit Aerosystems Holdings, Inc., Class A *		49,380		766,378
				4,642,040
Agriculture - 0.49%
The Mosaic Company		67,808		3,286,654
Air Travel - 0.88%
AirAsia BHD *		91,200		35,264
Delta Air Lines, Inc. *		808,593		5,838,041
				5,873,305
Apparel & Textiles - 2.55%
Anta Sports Products, Ltd.		747,720		922,943
China Hongxing Sports, Ltd. *		4,188,120		710,523
Coach, Inc.		80,800		2,285,832
Hanesbrands, Inc. *		320,078		6,740,843
Iconix Brand Group, Inc. *		69,774		1,198,717
Li Ning Company, Ltd.		195,020		544,115
Warnaco Group, Inc. *		109,300		4,158,865
XTEP International Holdings		1,192,290		572,115
				17,133,953
Auto Parts - 0.67%
Advance Auto Parts, Inc.		77,529		3,279,476
Geely Automobile Holdings Company, Ltd.		1,208,600		293,019
TRW Automotive Holdings Corp. *		53,000		935,450
				4,507,945
Automobiles - 0.77%
Astra International Tbk PT		103,800		310,297
Dongfeng Motor Group Company, Ltd.		393,860		408,834
Ford Motor Company *		402,490		3,058,924
PACCAR, Inc.		37,741		1,365,092
				5,143,147
Banking - 4.76%
Bank Mandiri Tbk PT		744,190		305,021
Bank of America Corp.		875,894		15,406,975
Bank of Ayudhya PCL, NVDR		910,000		480,104
Bank of China, Ltd.		3,575,000		1,738,129
China Construction Bank Corp.		1,222,000		920,363
China Merchants Bank Company, Ltd.		655,000		1,431,252
Huntington Bancshares, Inc. (a)		354,100		1,614,696
Itau Unibanco Holding SA		76,560		1,282,380
Julius Baer Holding AG		14,900		760,499
Lloyds TSB Group PLC *		739,318		1,336,357
PNC Financial Services Group, Inc.		44,613		1,900,068
Popular, Inc.		185,021		397,795
SunTrust Banks, Inc.		185,030		4,324,151
				31,897,790
Biotechnology - 0.61%
Amgen, Inc. *		37,500		2,240,250
Arena Pharmaceuticals, Inc. *		61,416		285,585
Genzyme Corp. *		19,185		1,068,796
Life Technologies Corp. *		11,600		516,548
				4,111,179
Building Materials & Construction - 0.41%
Anhui Conch Cement Company, Ltd., Class H		72,000		459,885
China National Building Material Company, Ltd.		155,990		327,867
Owens Corning, Inc. *		35,700		797,538
Trex Company, Inc. *		62,103		1,180,578
				2,765,868
Business Services - 2.03%
Accenture, Ltd., Class A		91,936		3,033,888
Alliance Data Systems Corp. * (a)		14,400		800,064
Automatic Data Processing, Inc.		120,030		4,603,151
Coinstar, Inc. *		27,400		904,474
Constant Contact, Inc. *		17,600		366,608
Fluor Corp.		43,909		2,322,786
PHH Corp. *		63,000		1,339,380
TrueBlue, Inc. *		16,100		218,960
				13,589,311

The accompanying notes are an integral part of the financial statements.

94

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Alpha Opportunities Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Cable & Television - 0.88%
Comcast Corp., Class A		379,300	$	5,533,987
TiVo, Inc. *		40,100		393,381
				5,927,368
Cellular Communications - 0.44%
Leap Wireless International, Inc. *		40,200		662,898
MetroPCS Communications, Inc. *		140,094		1,115,148
Motorola, Inc.		87,860		630,835
RF Micro Devices, Inc. *		120,800		567,760
				2,976,641
Chemicals - 0.84%
Cytec Industries, Inc.		14,340		414,282
Dow Chemical Company		89,500		1,905,455
Huabao International Holdings, Ltd.		244,910		254,875
PPG Industries, Inc.		29,097		1,611,974
UCB SA		37,440		1,457,348
				5,643,934
Coal - 1.31%
Alpha Natural Resources, Inc. *		19,000		613,890
CONSOL Energy, Inc.		135,456		5,067,409
Massey Energy Company		46,200		1,251,096
Walter Energy, Inc.		35,960		1,866,684
				8,799,079
Colleges & Universities - 0.58%
Corinthian Colleges, Inc. *		203,360		3,898,411
Commercial Services - 1.22%
Brink’s Home Security Holdings, Inc. *		54,000		1,688,580
Great American Group, Inc. *		471,600		2,145,780
Medifast, Inc. *		52,000		976,560
Pool Corp. (a)		140,135		3,338,016
				8,148,936
Computers & Business Equipment - 5.34%
Apple, Inc. *		55,252		9,293,939
Cisco Systems, Inc. *		435,200		9,400,320
EMC Corp. *		144,700		2,300,730
Hewlett-Packard Company		170,510		7,654,194
Research In Motion, Ltd. *		7,700		562,562
Seagate Technology		224,200		3,105,170
Xerox Corp.		406,349		3,514,919
				35,831,834
Construction & Mining Equipment - 0.04%
National Oilwell Varco, Inc. *		6,630		241,000
Construction Materials - 0.55%
Martin Marietta Materials, Inc. (a)		20,300		1,777,874
The Sherwin-Williams Company		32,227		1,940,065
				3,717,939
Containers & Glass - 0.59%
Owens-Illinois, Inc. *		70,700		2,399,558
Rexam PLC		358,175		1,556,473
				3,956,031
Correctional Facilities - 0.28%
Corrections Corp. of America *		94,200		1,868,928
Cosmetics & Toiletries - 0.81%
Hengan International Group Company, Ltd.		82,690		458,598
Procter & Gamble Company		91,496		4,950,848
				5,409,446
Crude Petroleum & Natural Gas - 3.29%
Apache Corp.		37,800		3,211,110
Cabot Oil & Gas Corp.		17,400		613,350
Chesapeake Energy Corp.		29,970		684,515
Hess Corp.		30,324		1,534,091
Marathon Oil Corp.		43,730		1,349,945
Newfield Exploration Company *		41,700		1,613,373
Noble Energy, Inc.		63,600		3,845,256
Occidental Petroleum Corp.		37,631		2,750,826
Suncor Energy, Inc. *		84,615		2,592,604
Whiting Petroleum Corp. *		16,700		810,618
XTO Energy, Inc.		80,044		3,089,698
				22,095,386
Diversified Minerals - 0.07%
Vale SA		25,480		489,471
Drugs & Health Care - 0.17%
Impax Laboratories, Inc. * (a)		152,400		1,156,716
Educational Services - 1.05%
Apollo Group, Inc., Class A *		59,704		3,870,013
ITT Educational Services, Inc. *		23,316		2,447,947
K12, Inc. * (a)		35,000		720,650
				7,038,610
Electric Products-Misc - 0.22%
Yingli Green Energy Holding Company, Ltd. * (a)		139,070		1,500,565
Electrical Equipment - 0.66%
BYD Company, Ltd., Class H *		112,300		706,196
Polypore International, Inc. *		62,800		714,036
Regal-Beloit Corp. (a)		26,100		1,186,506
Vestas Wind Systems AS *		25,668		1,843,590
				4,450,328
Electrical Utilities - 0.28%
Adani Power, Ltd. *		7,438		15,638
Cia Energetica de Minas Gerais, ADR (a)		60,000		876,600
Northeast Utilities		40,600		965,874
				1,858,112
Electronics - 0.37%
Flextronics International, Ltd. *		58,732		348,281
Jabil Circuit, Inc.		106,200		1,162,890
Thermo Fisher Scientific, Inc. *		22,200		1,003,662
				2,514,833
Energy - 1.29%
First Solar, Inc. * (a)		22,342		2,716,340
Lanco Infratech, Ltd. *		57,230		488,433
SunPower Corp., Class A * (a)		65,422		1,658,448
Sunpower Corp., Class B *		132,629		2,836,934
Trina Solar, Ltd., SADR * (a)		35,300		942,863
				8,643,018
Financial Services - 6.66%
Ameriprise Financial, Inc.		119,000		3,573,570

The accompanying notes are an integral part of the financial statements.

95

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Alpha Opportunities Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
China Everbright, Ltd.		187,430	$	443,607
Citigroup, Inc.		236,300		1,181,500
Deutsche Boerse AG		11,070		845,153
Fidelity National Financial, Inc., Class A		66,550		999,581
Goldman Sachs Group, Inc.		23,947		3,962,271
Hong Kong Exchanges & Clearing, Ltd.		40,780		711,572
JPMorgan Chase & Company		92,906		4,037,695
MasterCard, Inc., Class A		8,050		1,631,172
PennantPark Investment Corp.		176,748		1,475,846
Singapore Exchange, Ltd.		241,000		1,396,601
TD Ameritrade Holding Corp. *		64,500		1,240,980
UBS AG - Swiss Exchange *		265,580		4,910,804
UBS AG *		196,401		3,598,066
Wells Fargo & Company		472,981		13,016,437
Western Union Company		90,680		1,635,867
				44,660,722
Food & Beverages - 1.44%
Cott Corp. *		46,250		294,612
General Mills, Inc.		26,649		1,591,745
Nestle SA, SADR		38,758		1,606,519
Nestle SA		12,282		510,479
PepsiCo, Inc.		71,519		4,052,982
Tingyi Cayman Islands Holding Corp.		184,000		331,151
Tsingtao Brewery Company, Ltd., Series H		98,950		340,641
Want Want China Holdings, Ltd.		1,746,250		927,000
				9,655,129
Forest Products - 0.04%
Sino-Forest Corp. *		22,050		273,926
Gas & Pipeline Utilities - 0.76%
BG Group PLC		169,826		2,801,573
El Paso Corp.		86,200		795,626
Gazprom OAO, SADR		71,258		1,482,364
				5,079,563
Gold - 0.45%
AngloGold Ashanti, Ltd., SADR (a)		36,530		1,403,483
Barrick Gold Corp.		8,580		297,726
Osisko Mining Corp. *		1,600		10,388
Randgold Resources, Ltd., ADR		10,700		629,267
Yamana Gold, Inc.		73,700		678,040
				3,018,904
Healthcare Products - 3.26%
ATS Medical, Inc. *		371,900		1,000,411
China Medical Technologies, Inc., SADR * (a)		33,263		512,250
Covidien PLC		116,057		4,592,376
Edwards Lifesciences Corp. *		19,300		1,194,284
Herbalife, Ltd.		125,100		3,788,028
Hologic, Inc. *		57,200		940,940
Inverness Medical Innovations, Inc. *		21,700		772,520
Johnson & Johnson		33,203		2,006,789
Medtronic, Inc.		104,456		4,000,665
NutriSystem, Inc. (a)		75,400		1,072,942
St. Jude Medical, Inc. *		28,100		1,082,974
Volcano Corp. *		62,670		896,181
				21,860,360
Healthcare Services - 1.69%
Cardinal Health, Inc.		130,778	$	4,522,303
ICON PLC, SADR *		37,000		799,940
SXC Health Solutions Corp. *		30,000		1,221,300
UnitedHealth Group, Inc.		170,159		4,764,452
				11,307,995
Holdings Companies/Conglomerates - 0.08%
Textron, Inc.		35,600		546,816
Homebuilders - 0.83%
Lennar Corp., Class A		83,460		1,264,419
Pulte Homes, Inc.		54,300		693,954
Toll Brothers, Inc. *		158,400		3,602,016
				5,560,389
Hotels & Restaurants - 0.33%
Starbucks Corp. *		45,300		860,247
Starwood Hotels & Resorts Worldwide, Inc.		24,900		741,522
The Cheesecake Factory, Inc. * (a)		31,500		578,655
				2,180,424
Household Appliances - 0.33%
Stanley Works		45,120		1,846,762
Whirlpool Corp. (a)		5,578		358,163
				2,204,925
Household Products - 0.70%
Jarden Corp. *		164,762		4,011,955
Tempur-Pedic International, Inc. *		45,800		677,840
				4,689,795
Industrial Machinery - 1.46%
Briggs & Stratton Corp. (a)		9,619		169,679
Cameron International Corp. *		16,700		596,357
Caterpillar, Inc. (a)		63,249		2,865,812
Cummins, Inc.		460		20,847
Deere & Company		64,060		2,793,016
Flowserve Corp.		22,800		1,966,500
Kennametal, Inc.		10,660		235,053
Terex Corp. * (a)		68,788		1,133,627
				9,780,891
Industrials - 0.30%
Beijing Enterprises Holdings, Ltd.		229,470		1,139,809
Foster Wheeler AG *		4,908		142,087
General Electric Company		53,800		747,820
				2,029,716
Insurance - 4.23%
ACE, Ltd.		136,473		7,121,161
Assured Guaranty, Ltd.		38,100		758,190
China Life Insurance Company, Ltd.		95,230		400,970
Chubb Corp.		74,750		3,691,902
CIGNA Corp.		96,900		2,851,767
Hartford Financial Services Group, Inc.		179,476		4,257,171
Lincoln National Corp.		40,100		1,012,124
Marsh & McLennan Companies, Inc.		185,122		4,357,772
Unum Group		175,000		3,942,750
				28,393,807

The accompanying notes are an integral part of the financial statements.

96

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Alpha Opportunities Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
International Oil - 1.81%
Anadarko Petroleum Corp.		75,572	$	3,995,492
BP PLC, SADR		41,787		2,149,941
Chevron Corp.		6,800		475,592
Lundin Petroleum AB, Series A *		84,517		775,575
Nabors Industries, Ltd. *		87,023		1,538,567
Petroleo Brasileiro SA, ADR (a)		80,739		3,200,494
				12,135,661
Internet Content - 0.54%
Google, Inc., Class A *		7,200		3,324,024
Sohu.com, Inc. * (a)		4,840		295,724
				3,619,748
Internet Retail - 0.82%
Amazon.com, Inc. *		28,420		2,307,420
eBay, Inc. *		70,000		1,549,800
Rakuten, Inc.		956		577,540
Shutterfly, Inc. *		74,500		1,077,270
				5,512,030
Internet Service Provider - 0.99%
Alibaba.com, Ltd. * (a)		398,700		996,233
Baidu, Inc., SADR * (a)		2,550		841,653
Equinix, Inc. *		50,988		4,296,249
Netease.com, Inc., ADR *		11,390		478,266
				6,612,401
Internet Software - 0.77%
Check Point Software Technologies, Ltd. *		20,830		580,532
McAfee, Inc. *		45,838		1,823,436
Tencent Holdings, Ltd.		110,560		1,648,589
Vocus, Inc. *		67,500		1,138,050
				5,190,607
Leisure Time - 0.73%
DreamWorks Animation SKG, Inc., Class A *		46,500		1,569,840
International Game Technology		46,300		968,596
Life Time Fitness, Inc. *		66,200		2,060,144
REXLot Holdings, Ltd. *		4,049,800		329,053
				4,927,633
Manufacturing - 3.32%
3M Company		19,654		1,417,053
ABB, Ltd., SADR *		77,130		1,478,582
China Resources Enterprises, Ltd.		183,800		429,284
Hansen Transmissions International NV *		49,778		109,369
Honeywell International, Inc.		116,113		4,268,314
Illinois Tool Works, Inc.		117,409		4,910,044
Ingersoll-Rand PLC		182,976		5,652,129
Pentair, Inc.		105,945		3,001,422
Shanghai Industrial Holdings, Ltd.		56,010		269,715
Siemens AG		8,055		698,529
				22,234,441
Medical-Hospitals - 0.63%
Novavax, Inc. * (a)		637,760		3,852,071
Orthovita, Inc. *		93,610		395,034
				4,247,105
Metal & Metal Products - 0.88%
Cameco Corp.		78,930	$	2,097,960
Paladin Resources, Ltd. *		116,649		452,653
Precision Castparts Corp. (a)		27,730		2,531,194
Vedanta Resources PLC		28,318		818,509
				5,900,316
Mining - 2.33%
Agnico Eagle Mines, Ltd.		22,340		1,282,316
Anglo American PLC *		27,843		906,753
BHP Billiton, Ltd., SADR (a)		25,700		1,601,110
Bumi Resources Tbk PT		1,882,450		549,317
Cliffs Natural Resources, Inc. (a)		64,728		1,638,266
Fortescue Metals Group, Ltd. * (a)		188,412		700,667
Freeport-McMoRan Copper & Gold, Inc., Class B		36,300		2,286,174
Newmont Mining Corp.		28,580		1,148,630
Osisko Mining Corp. *		50,070		327,473
Teck Cominco, Ltd., Class B *		102,200		2,458,932
Xstrata PLC		203,602		2,695,590
				15,595,228
Oil & Gas Drilling - 0.35%
Atwood Oceanics, Inc. *		21,300		606,624
Karoon Gas Australia, Ltd. *		189,110		1,718,830
				2,325,454
Oil Comp-Explor&Prodtn - 0.02%
Falcon Oil & Gas, Ltd. *		272,780		107,144
Paper - 0.03%
Aracruz Celulose SA, SADR * (a)		10,060		212,467
Petroleum Services - 1.76%
Complete Production Services, Inc. *		220,000		1,980,000
Halliburton Company		12,600		298,746
Noble Corp.		34,700		1,215,541
Total SA, SADR		80,883		4,632,169
Valero Energy Corp.		52,140		977,104
Weatherford International, Ltd. *		136,600		2,725,170
				11,828,730
Pharmaceuticals - 5.64%
Abbott Laboratories		11,300		511,099
Amylin Pharmaceuticals, Inc. * (a)		33,276		419,278
Bristol-Myers Squibb Company		46,720		1,033,913
Daiichi Sankyo Company, Ltd.		7,600		162,088
Elan Corp. PLC, SADR *		433,635		3,135,181
Eli Lilly & Company (a)		108,640		3,635,094
Merck & Company, Inc. (a)		323,876		10,503,299
Pfizer, Inc. (a)		601,201		10,040,057
Teva Pharmaceutical Industries, Ltd., SADR		87,568		4,509,752
Vertex Pharmaceuticals, Inc. *		34,700		1,298,127
Watson Pharmaceuticals, Inc. *		26,410		932,009
Wyeth		33,800		1,617,330
				37,797,227
Publishing - 0.19%
VistaPrint, Ltd. * (a)		30,500		1,263,920
Railroads & Equipment - 0.40%
China Railway Group, Ltd. *		1,850,080		1,607,882

The accompanying notes are an integral part of the financial statements.

97

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Alpha Opportunities Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Railroads & Equipment (continued)
China South Locomotive and Rolling Stock
Corp.		920,000	$	545,785
MTR Corp., Ltd.		153,000		515,927
				2,669,594
Real Estate - 1.43%
BR Malls Participacoes SA *		50,300		512,421
Chimera Investment Corp., REIT		938,543		3,566,463
China Overseas Land & Investment, Ltd.		869,150		1,755,704
China Resources Land, Ltd.		268,560		563,173
E-House China Holdings, Ltd. * (a)		17,910		341,544
Franshion Properties China, Ltd.		1,262,020		351,530
PDG Realty SA Empreendimentos e Participacoes		31,140		457,674
Shimao Property Holdings, Ltd., GDR		289,840		432,003
Sino-Ocean Land Holdings, Ltd.		640,030		584,388
Sun Hung Kai Properties, Ltd.		43,000		579,508
Wharf Holdings, Ltd.		95,500		425,839
				9,570,247
Retail - 0.16%
Belle International Holdings, Ltd., GDR		555,600		505,013
China Dongxiang Group Company		929,910		581,934
				1,086,947
Retail Trade - 4.35%
Abercrombie & Fitch Company, Class A		14,900		481,121
Aeropostale, Inc. * (a)		89,400		3,500,010
Best Buy Company, Inc.		101,032		3,665,441
Dick’s Sporting Goods, Inc. *		37,400		838,134
Esprit Holdings, Ltd.		79,300		481,446
Home Depot, Inc. (a)		76,161		2,078,434
Kohl’s Corp. *		83,418		4,303,535
Lumber Liquidators, Inc. *		27,700		609,400
Nordstrom, Inc. (a)		21,200		594,448
Staples, Inc.		350,181		7,567,411
The Gap, Inc.		189,234		3,718,448
Wal-Mart Stores, Inc.		25,600		1,302,272
				29,140,100
Sanitary Services - 0.19%
Waste Management, Inc.		43,533		1,302,943
Semiconductors - 2.65%
ASML Holding NV (a)		20,630		566,706
Intel Corp.		78,900		1,603,248
MEMC Electronic Materials, Inc. *		98,600		1,572,670
NVIDIA Corp. *		128,000		1,858,560
ON Semiconductor Corp. *		432,000		3,486,240
Skyworks Solutions, Inc. *		66,600		775,890
Teradyne, Inc. * (a)		216,300		1,784,475
Texas Instruments, Inc.		213,280		5,244,555
Triquint Semiconductor, Inc. *		119,600		875,472
				17,767,816
Software - 3.78%
Adobe Systems, Inc. *		110,153		3,461,007
American Reprographics Company *		77,400		707,436
ArcSight, Inc. *		48,300		934,605
AsiaInfo Holdings, Inc. *		26,170		450,647
BMC Software, Inc. *		67,300	$	2,399,245
Concur Technologies, Inc. *		24,300		859,248
Educomp Solutions, Ltd.		9,030		762,899
Microsoft Corp.		189,573		4,672,975
Oracle Corp.		266,240		5,822,669
Red Hat, Inc. *		142,839		3,279,583
Riverbed Technology, Inc. * (a)		27,500		530,200
Take-Two Interactive Software, Inc. *		81,800		858,900
VMware, Inc., Class A * (a)		17,100		605,853
				25,345,267
Steel - 0.77%
ArcelorMittal (a)		51,036		1,818,413
Gerdau SA, SADR		117,300		1,378,275
Nucor Corp.		13,800		614,652
United States Steel Corp. (a)		31,300		1,370,314
				5,181,654
Telecommunications Equipment &
Services - 2.12%
Corning, Inc.		17,810		268,575
Harris Stratex Networks, Inc., Class A *		23,500		142,410
HUGHES Telematics, Inc. * (a)		28,605		85,815
Koninklijke KPN NV		68,957		1,060,495
QUALCOMM, Inc.		109,430		5,079,740
Softbank Corp.		44,600		995,079
Starent Networks Corp. *		47,300		957,352
Virgin Media, Inc.		409,300		4,678,299
ZTE Corp., Class H		209,600		977,275
				14,245,040
Telephone - 0.68%
AT&T, Inc.		174,150		4,536,607
Tobacco - 0.15%
Altria Group, Inc.		54,058		988,180
Toys, Amusements & Sporting Goods - 0.14%
Marvel Entertainment, Inc. *		19,000		919,030
Transportation - 0.47%
Con-way, Inc.		31,300		1,307,088
Overseas Shipholding Group, Inc. (a)		24,400		863,028
Tsakos Energy Navigation, Ltd. (a)		40,900		657,672
Zhejiang Expressway Company, Ltd., Class H		349,000		333,263
				3,161,051
Travel Services - 0.09%
Ctrip.com International, Ltd., ADR *		12,080		591,195
Trucking & Freight - 1.46%
FedEx Corp.		71,830		4,935,439
J.B. Hunt Transport Services, Inc.		25,300		709,159
United Parcel Service, Inc., Class B (a)		77,459		4,140,958
				9,785,556
TOTAL COMMON STOCKS (Cost $559,218,323)			$	646,533,074
INVESTMENT COMPANIES - 1.27%
Investment Companies - 1.27%
iShares Russell 1000 Index Fund (a)		72,700		4,085,013

The accompanying notes are an integral part of the financial statements.

98

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Alpha Opportunities Fund (continued)

	Shares or Principal Amount		Value
INVESTMENT COMPANIES (continued)
Investment Companies (continued)
Midcap SPDR Trust, Series 1 (a)		28,100	$	3,340,809
SPDR Trust Series 1		10,300		1,056,265
				8,482,087
TOTAL INVESTMENT COMPANIES (Cost $6,788,861)			$	8,482,087
SHORT TERM INVESTMENTS - 11.34%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		7,597,546	$	76,061,317
TOTAL SHORT TERM INVESTMENTS (Cost $76,059,977)			$	76,061,317
REPURCHASE AGREEMENTS - 2.00%
Bank of New York Tri-Party Repurchase Agreement dated 08/31/2009 at 0.21% to be repurchased at $13,400,078 on 09/01/2009, collateralized by $15,165,847 Federal National Mortgage Association, 7.00% due 11/01/2038 (valued at $13,668,000, including interest)	$	13,400,000	$	13,400,000
TOTAL REPURCHASE AGREEMENTS (Cost $13,400,000)			$	13,400,000
Total Investments (Alpha Opportunities Fund) (Cost $655,467,161) - 111.02%			$	744,476,478
Other assets and liabilities, net - (11.02)%				(73,880,027	)
TOTAL NET ASSETS - 100.00%			$	670,596,451

Alternative Asset Allocation Fund

	Shares or Principal Amount		Value
INVESTMENT COMPANIES - 99.16%
Investment Companies - 8.63%
PowerShares DB Commodity Index Tracking Fund		5,000	$	110,550
JOHN HANCOCK FUNDS II (i) - 90.53%
Emerging Markets Value (DFA)		22,677		206,136
Floating Rate Income (WAMCO)		18,846		171,873
Global Bond (PIMCO)		9,892		122,563
Global Real Estate (Deutsche)		33,010		205,981
High Income (MFC Global U.S.) (h)		7,014		44,679
High Yield (WAMCO)		3,536		28,143
International Small Cap (Templeton)		5,006		60,776
International Small Company (DFA)		7,533		53,559
Natural Resources (Wellington)		4,521		79,352
Real Return Bond (PIMCO)		12,272		147,136
U.S. High Yield Bond (Wells Capital)		3,408	$	40,010
				1,160,208
TOTAL INVESTMENT COMPANIES (Cost $1,003,083)			$	1,270,758
Total Investments (Alternative Asset Allocation Fund) (Cost $1,003,083) - 99.16%			$	1,270,758
Other assets and liabilities, net - 0.84%				10,790
TOTAL NET ASSETS - 100.00%			$	1,281,548

American Diversified Growth & Income Fund

	Shares or Principal Amount		Value
INVESTMENT COMPANIES - 100.17%
American Funds Insurance Series - 100.17%
American Capital World Bond Fund, Class R5		34,960	$	697,452
American High-Income Trust, Class R5		23,591		232,140
Capital Income Builder Fund, Class R5		10,113		462,550
Capital World Growth and Income Fund,
Class R5		18,342		576,301
EuroPacific Growth Fund, Class R5		16,134		575,806
Fundamental Investors Fund, Class R5		46,703		1,381,933
New Perspective Fund, Class R5		19,706		460,722
New World Fund, Class R5		5,356		230,367
SMALLCAP World Fund, Class R5		8,083		230,437
The Bond Fund of America, Class R5		140,273		1,628,573
The Growth Fund of America, Class R5		64,645		1,612,255
The Income Fund of America, Class R5		31,949		462,939
The Investment Company of America, Class R5		67,487		1,612,255
Washington Mutual Investors Fund, Class R5		61,039		1,381,933
				11,545,663
TOTAL INVESTMENT COMPANIES (Cost $10,471,618)			$	11,545,663
Total Investments (American Diversified Growth & Income Fund) (Cost $10,471,618) - 100.17%			$	11,545,663
Other assets and liabilities, net - (0.17)%				(19,658	)
TOTAL NET ASSETS - 100.00%			$	11,526,005

American Fundamental Holdings Fund

	Shares or Principal Amount		Value
INVESTMENT COMPANIES - 100.24%
American Funds Insurance Series - 100.24%
EuroPacific Growth Fund, Class R5		28,844	$	1,029,453
Fundamental Investors Fund, Class R5		32,114		950,263
The Bond Fund of America, Class R5		172,069		1,997,716
The Growth Fund of America, Class R5		38,102		950,263
The Income Fund of America, Class R5		43,898		636,089

The accompanying notes are an integral part of the financial statements.

99

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

American Fundamental Holdings Fund (continued)

	Shares or Principal Amount		Value
INVESTMENT COMPANIES (continued)
American Funds Insurance Series (continued)
The Investment Company of America, Class R5		39,777	$	950,263
U.S. Government Securities Fund, Class R5		45,333		639,646
Washington Mutual Investors Fund, Class R5		34,977		791,888
				7,945,581
TOTAL INVESTMENT COMPANIES (Cost $7,136,106)			$	7,945,581
Total Investments (American Fundamental Holdings Fund) (Cost $7,136,106) - 100.24%			$	7,945,581
Other assets and liabilities, net - (0.24)%				(18,840	)
TOTAL NET ASSETS - 100.00%			$	7,926,741

American Global Diversification Fund

	Shares or Principal Amount		Value
INVESTMENT COMPANIES - 100.24%
American Funds Insurance Series - 100.24%
American High-Income Trust, Class R5		55,113	$	542,311
Capital Income Builder Fund, Class R5		13,556		620,045
Capital World Growth and Income Fund,
Class R5		39,468		1,240,086
EuroPacific Growth Fund, Class R5		21,716		775,054
New Perspective Fund, Class R5		39,780		930,064
New World Fund, Class R5		18,020		775,051
SMALLCAP World Fund, Class R5		43,497		1,240,086
The Bond Fund of America, Class R5		140,112		1,626,696
				7,749,393
TOTAL INVESTMENT COMPANIES (Cost $6,996,544)			$	7,749,393
Total Investments (American Global Diversification Fund) (Cost $6,996,544) - 100.24%			$	7,749,393
Other assets and liabilities, net - (0.24)%				(18,232	)
TOTAL NET ASSETS - 100.00%			$	7,731,161

Blue Chip Growth Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 98.89%
Aerospace - 1.59%
Goodrich Corp.		58,200	$	3,210,312
Lockheed Martin Corp.		189,200		14,186,216
United Technologies Corp.		85,200		5,057,472
				22,454,000
Agriculture - 0.69%
Monsanto Company		116,004		9,730,416
Apparel & Textiles - 0.36%
NIKE, Inc., Class B		90,800		5,029,412
Auto Parts - 0.39%
O’Reilly Automotive, Inc. *		144,400		5,527,632
Banking - 2.81%
Bank of America Corp.		473,500		8,328,865
Bank of New York Mellon Corp.		176,939		5,239,164
Northern Trust Corp.		329,111		19,239,829
U.S. Bancorp		304,300		6,883,266
				39,691,124
Biotechnology - 0.60%
Amgen, Inc. *		131,400		7,849,836
Genzyme Corp. *		5,800		323,118
Life Technologies Corp. *		5,800		258,274
				8,431,228
Broadcasting - 1.24%
Discovery Communications, Inc., Series A *		378,500		9,810,720
Discovery Communications, Inc., Series C *		329,400		7,698,078
				17,508,798
Business Services - 2.35%
Accenture, Ltd., Class A		173,300		5,718,900
Automatic Data Processing, Inc.		40,467		1,551,909
Fiserv, Inc. *		289,900		13,987,675
Fluor Corp.		166,500		8,807,850
Moody’s Corp.		118,900		3,238,836
				33,305,170
Chemicals - 1.27%
Potash Corp. of Saskatchewan, Inc.		1,500		132,765
Praxair, Inc.		232,000		17,775,840
				17,908,605
Computers & Business Equipment - 9.64%
Apple, Inc. *		459,700		77,326,137
Cisco Systems, Inc. *		553,082		11,946,571
EMC Corp. *		72,200		1,147,980
Hewlett-Packard Company		57,800		2,594,642
International Business Machines Corp.		66,000		7,791,300
Juniper Networks, Inc. *		844,779		19,489,052
Research In Motion, Ltd. *		220,400		16,102,424
				136,398,106
Cosmetics & Toiletries - 0.07%
Procter & Gamble Company		18,828		1,018,783
Crude Petroleum & Natural Gas - 1.84%
EOG Resources, Inc.		179,700		12,938,400
Southwestern Energy Company *		197,700		7,287,222
Suncor Energy, Inc. *		189,200		5,797,088
				26,022,710
Educational Services - 0.58%
Apollo Group, Inc., Class A *		125,700		8,147,874
Electrical Utilities - 0.23%
Entergy Corp.		40,800		3,223,200
Energy - 0.93%
First Solar, Inc. * (a)		28,900		3,513,662
McDermott International, Inc. *		27,000		641,520

The accompanying notes are an integral part of the financial statements.

100

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Blue Chip Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Energy (continued)
NRG Energy, Inc. *		334,800	$	8,989,380
				13,144,562
Financial Services - 16.16%
American Express Company		415,448		14,050,451
Ameriprise Financial, Inc.		166,089		4,987,653
BlackRock, Inc. (a)		13,070		2,608,379
Charles Schwab Corp.		525,714		9,494,394
CME Group, Inc. (a)		12,250		3,565,240
Credit Suisse Group AG		18,900		963,285
Franklin Resources, Inc.		286,935		26,779,644
Goldman Sachs Group, Inc. (a)		222,924		36,885,005
IntercontinentalExchange, Inc. *		101,150		9,487,870
JPMorgan Chase & Company		535,600		23,277,176
MasterCard, Inc., Class A		76,860		15,574,142
Morgan Stanley		276,800		8,016,128
State Street Corp.		595,029		31,227,122
Visa, Inc. (a)		226,900		16,132,590
Wells Fargo & Company		601,400		16,550,528
Western Union Company		505,400		9,117,416
				228,717,023
Food & Beverages - 1.34%
Kellogg Company		5,800		273,122
PepsiCo, Inc.		202,166		11,456,747
The Coca-Cola Company		149,000		7,266,730
				18,996,599
Healthcare Products - 3.43%
Alcon, Inc.		10,100		1,307,647
Baxter International, Inc.		217,900		12,402,868
C.R. Bard, Inc.		43,300		3,489,114
Intuitive Surgical, Inc. * (a)		38,150		8,496,386
Johnson & Johnson		18,900		1,142,316
Medtronic, Inc.		58,046		2,223,162
St. Jude Medical, Inc. *		397,164		15,306,701
Stryker Corp.		99,921		4,142,725
				48,510,919
Healthcare Services - 5.77%
Cerner Corp. *		15,400		950,334
Express Scripts, Inc. *		313,400		22,633,748
McKesson Corp.		318,900		18,132,654
Medco Health Solutions, Inc. *		625,900		34,562,198
WellPoint, Inc. *		101,128		5,344,615
				81,623,549
Hotels & Restaurants - 3.01%
Marriott International, Inc., Class A (a)		391,826		9,364,651
McDonald’s Corp.		261,300		14,695,512
Starbucks Corp. *		283,100		5,376,069
Wynn Resorts, Ltd. *		200		10,826
Yum! Brands, Inc.		384,500		13,169,125
				42,616,183
Industrial Machinery - 1.17%
Cameron International Corp. *		202,200		7,220,562
FMC Technologies, Inc. *		194,600		9,282,420
W.W. Grainger, Inc.		1,400		122,458
				16,625,440
Industrials - 0.10%
Fastenal Company (a)		38,900		1,408,180
Insurance - 0.04%
Aon Corp.		15,300		638,928
International Oil - 0.54%
Chevron Corp.		1,600		111,904
Exxon Mobil Corp.		39,962		2,763,372
Petroleo Brasileiro SA, SADR		144,500		4,797,400
				7,672,676
Internet Content - 3.85%
Google, Inc., Class A *		118,084		54,515,840
Internet Retail - 4.66%
Amazon.com, Inc. *		582,011		47,253,473
eBay, Inc. *		1,662		36,797
Expedia, Inc. *		362,400		8,353,320
Priceline.com, Inc. * (a)		66,800		10,285,864
				65,929,454
Internet Software - 2.87%
Electronic Arts, Inc. *		397,496		7,242,377
McAfee, Inc. *		375,900		14,953,302
Tencent Holdings, Ltd.		1,026,200		15,301,941
VeriSign, Inc. * (a)		144,900		3,070,431
				40,568,051
Leisure Time - 0.25%
Carnival Corp. *		122,400		3,580,200
Manufacturing - 2.74%
3M Company		92,500		6,669,250
Danaher Corp.		528,337		32,075,339
				38,744,589
Mining - 0.21%
Freeport-McMoRan Copper & Gold, Inc.,
Class B		47,300		2,978,954
Multimedia - 0.73%
Time Warner, Inc.		372,433		10,394,605
Petroleum Services - 3.19%
Schlumberger, Ltd.		540,208		30,359,690
Smith International, Inc.		535,828		14,772,778
				45,132,468
Pharmaceuticals - 5.45%
Allergan, Inc.		345,500		19,320,360
Celgene Corp. *		347,200		18,113,424
Gilead Sciences, Inc. *		591,438		26,650,196
Novo Nordisk AS		22,300		1,362,805
Roche Holdings AG - Genusschein		1,606		255,552
Schering-Plough Corp.		1,100		30,998
Teva Pharmaceutical Industries, Ltd., SADR		214,500		11,046,750
Wyeth		5,846		279,731
				77,059,816

The accompanying notes are an integral part of the financial statements.

101

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Blue Chip Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Publishing - 1.22%
McGraw-Hill Companies, Inc.		514,900	$	17,305,789
Railroads & Equipment - 0.18%
Union Pacific Corp.		43,400		2,595,754
Retail Trade - 5.56%
Bed Bath & Beyond, Inc. *		337,500		12,312,000
Costco Wholesale Corp.		7,400		377,252
CVS Caremark Corp.		495,332		18,584,857
Dollar Tree, Inc. *		14,400		719,136
Kohl’s Corp. *		356,770		18,405,764
Lowe’s Companies, Inc.		304,300		6,542,450
Wal-Mart Stores, Inc.		427,136		21,728,408
				78,669,867
Sanitary Services - 0.22%
Republic Services, Inc.		119,300		3,055,273
Semiconductors - 4.15%
Altera Corp.		321,500		6,176,015
Broadcom Corp., Class A *		434,500		12,361,525
Intel Corp.		267,200		5,429,504
Marvell Technology Group, Ltd. *		1,300,090		19,826,373
Xilinx, Inc. (a)		669,875		14,898,020
				58,691,437
Software - 3.40%
Adobe Systems, Inc. *		110,525		3,472,695
Autodesk, Inc. *		145,500		3,409,065
Microsoft Corp.		1,521,766		37,511,532
Oracle Corp.		167,438		3,661,869
				48,055,161
Telecommunications Equipment & Services - 3.83%
American Tower Corp., Class A *		628,962		19,906,647
Corning, Inc.		217,400		3,278,392
QUALCOMM, Inc.		669,123		31,060,690
				54,245,729
Transportation - 0.23%
Expeditors International of Washington, Inc.		101,600		3,318,256
TOTAL COMMON STOCKS (Cost $1,165,362,130)			$	1,399,192,360
SHORT TERM INVESTMENTS - 3.86%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		4,619,283	$	46,245,024
T. Rowe Price Reserve Investment Fund, 0.3265%		8,324,374		8,324,374
TOTAL SHORT TERM INVESTMENTS (Cost $54,558,813)			$	54,569,398
REPURCHASE AGREEMENTS - 0.08%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,190,002 on 09/01/2009, collateralized by $915,000 U.S. Treasury Bonds, 7.25% due 08/15/2022 (valued at $1,214,937, including interest)	$	1,190,000	$	1,190,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,190,000)			$	1,190,000
Total Investments (Blue Chip Growth Fund) (Cost $1,221,110,943) - 102.83%			$	1,454,951,758
Other assets and liabilities, net - (2.83)%				(40,027,848	)
TOTAL NET ASSETS - 100.00%			$	1,414,923,910

Capital Appreciation Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 95.77%
Aerospace - 0.47%
United Technologies Corp.		90,730	$	5,385,733
Agriculture - 1.76%
Monsanto Company		240,000		20,131,200
Apparel & Textiles - 1.96%
Coach, Inc.		195,990		5,544,557
NIKE, Inc., Class B		304,042		16,840,886
				22,385,443
Auto Parts - 0.59%
Johnson Controls, Inc.		274,400		6,796,888
Biotechnology - 0.50%
Amgen, Inc. *		95,000		5,675,300
Computers & Business Equipment - 12.11%
Apple, Inc. *		285,176		47,969,455
Cisco Systems, Inc. *		1,067,530		23,058,648
Hewlett-Packard Company		460,200		20,658,378
International Business Machines Corp.		169,800		20,044,890
Research In Motion, Ltd. *		366,900		26,805,714
				138,537,085
Cosmetics & Toiletries - 1.69%
Colgate-Palmolive Company		266,000		19,338,200
Crude Petroleum & Natural Gas - 4.37%
Occidental Petroleum Corp.		386,800		28,275,080
Southwestern Energy Company *		453,000		16,697,580
XTO Energy, Inc.		131,900		5,091,340
				50,064,000
Electronics - 0.49%
Agilent Technologies, Inc. *		219,225		5,629,698
Financial Services - 9.87%
Charles Schwab Corp.		897,231		16,203,992
Goldman Sachs Group, Inc.		205,510		34,003,684
MasterCard, Inc., Class A (a)		133,100		26,970,053

The accompanying notes are an integral part of the financial statements.

102

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Capital Appreciation Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Visa, Inc. (a)		503,200	$	35,777,520
				112,955,249
Food & Beverages - 3.47%
Cadbury PLC		1,213,200		11,438,389
PepsiCo, Inc.		399,735		22,652,983
Unilever PLC		207,100		5,638,230
				39,729,602
Healthcare Products - 4.63%
Alcon, Inc.		192,219		24,886,594
Baxter International, Inc.		493,000		28,061,560
				52,948,154
Healthcare Services - 2.58%
Medco Health Solutions, Inc. *		534,500		29,515,090
Hotels & Restaurants - 0.58%
Starbucks Corp. *		348,500		6,618,015
International Oil - 1.41%
Petroleo Brasileiro SA, ADR (a)		406,400		16,109,696
Internet Content - 4.84%
Google, Inc., Class A *		119,893		55,351,001
Internet Retail - 2.86%
Amazon.com, Inc. *		402,500		32,678,975
Internet Service Provider - 1.06%
Baidu, Inc., SADR * (a)		36,600		12,080,196
Internet Software - 0.97%
Salesforce.com, Inc. * (a)		172,100		8,926,827
Tencent Holdings, Ltd.		147,900		2,205,376
				11,132,203
Leisure Time - 1.55%
Walt Disney Company		683,600		17,800,944
Petroleum Services - 2.45%
Schlumberger, Ltd.		249,294		14,010,323
Weatherford International, Ltd. *		701,200		13,988,940
				27,999,263
Pharmaceuticals - 13.35%
Abbott Laboratories		284,500		12,867,935
Celgene Corp. *		425,500		22,198,335
Gilead Sciences, Inc. *		859,072		38,709,785
Mylan, Inc. * (a)		451,700		6,626,439
Roche Holding AG, SADR		578,800		23,059,392
Shire Pharmaceuticals Group PLC, ADR		202,970		10,059,193
Teva Pharmaceutical Industries, Ltd., SADR		611,300		31,481,950
Vertex Pharmaceuticals, Inc. *		209,200		7,826,172
				152,829,201
Retail Trade - 6.43%
Costco Wholesale Corp.		247,500		12,617,550
CVS Caremark Corp.		623,200		23,382,464
Kohl’s Corp. *		351,100		18,113,249
Target Corp.		169,400		7,961,800
Tiffany & Company (a)		132,711		4,828,026
Wal-Mart Stores, Inc.		130,900		6,658,883
				73,561,972
Semiconductors - 4.19%
Analog Devices, Inc.		355,000		10,028,750
Applied Materials, Inc.		1,108,200		14,606,076
Intel Corp.		1,147,540		23,318,013
				47,952,839
Software - 7.16%
Adobe Systems, Inc. *		739,115		23,222,993
Microsoft Corp.		1,090,841		26,889,231
Oracle Corp.		794,500		17,375,715
SAP AG, SADR		296,900		14,476,844
				81,964,783
Telecommunications Equipment & Services - 4.43%
QUALCOMM, Inc.		1,093,000		50,737,060
TOTAL COMMON STOCKS (Cost $908,352,500)			$	1,095,907,790
SHORT TERM INVESTMENTS - 5.72%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		6,534,977	$	65,423,611
TOTAL SHORT TERM INVESTMENTS (Cost $65,400,787)			$	65,423,611
REPURCHASE AGREEMENTS - 4.07%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $46,616,091 on 09/01/2009, collateralized by $46,505,000 Federal National Mortgage Association, 5.13% due 12/18/2017 (valued at $47,551,363, including interest)	$	46,616,000	$	46,616,000
TOTAL REPURCHASE AGREEMENTS (Cost $46,616,000)			$	46,616,000
Total Investments (Capital Appreciation Fund) (Cost $1,020,369,287) - 105.56%			$	1,207,947,401
Other assets and liabilities, net - (5.56)%				(63,588,824	)
TOTAL NET ASSETS - 100.00%			$	1,144,358,577

Core Bond Fund

	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 18.20%
U.S. Treasury Bonds - 3.32%
3.50% due 02/15/2039	$	4,659,000	$	4,115,938
4.25% due 05/15/2039		2,215,000		2,239,573
4.50% due 08/15/2039		1,724,000		1,816,934
5.375% due 02/15/2031		3,806,000		4,452,427
3.625% due 08/15/2019		1,339,000		1,364,106
				13,988,978
U.S. Treasury Notes - 14.88%
0.875% due 04/30/2011 to 05/31/2011		10,520,000		10,534,373
1.00% due 07/31/2011		756,000		757,063

The accompanying notes are an integral part of the financial statements.

103

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
U.S. TREASURY OBLIGATIONS (continued)
U.S. Treasury Notes (continued)
1.50% due 07/15/2012	$	64,000	$	64,125
1.75% due 08/15/2012		269,000		271,123
1.875% due 04/30/2014		2,410,000		2,368,296
2.375% due 08/31/2014		1,392,000		1,391,075
2.625% due 06/30/2014 to 07/31/2014		20,262,000		20,515,650
2.75% due 02/15/2019		3,843,000		3,637,941
3.125% due 05/15/2019		23,721,000		23,157,626
				62,697,272
TOTAL U.S. TREASURY OBLIGATIONS (Cost $76,479,146)			$	76,686,250
U.S. GOVERNMENT AGENCY OBLIGATIONS - 39.64%
Federal Home Loan Mortgage Corp. - 7.17%
3.57% due 06/15/2029		104,400		106,514
4.50% due 06/15/2025		257,000		268,371
5.50% due 01/01/2018 to 12/01/2037		19,404,004		20,465,808
5.73% due 02/01/2037 (b)		383,213		403,439
5.82% due 11/01/2038 (b)		932,708		982,531
5.91% due 03/01/2037 (b)		449,092		473,983
5.956% due 03/01/2038 (b)		2,443,214		2,580,484
5.971% due 01/01/2037 (b)		19,552		20,660
5.977% due 11/01/2037 (b)		122,509		129,690
5.992% due 01/01/2037 (b)		2,544,469		2,693,297
6.00% due 10/01/2019 to 03/01/2034		1,086,005		1,159,875
6.371% due 10/01/2037 (b)		234,944		249,481
6.50% due 07/01/2034		618,389		665,686
				30,199,819
Federal National Mortgage
Association - 29.78%
4.50% due 11/01/2033 to 11/01/2035		2,945,261		2,977,942
5.00% due 11/01/2033 to 07/01/2035		10,835,321		11,184,040
5.50% due 01/01/2018 to 09/01/2036		52,827,545		55,881,380
5.50% TBA **		27,000,000		28,056,055
5.597% due 05/01/2037 (b)		445,284		467,699
5.69% due 05/01/2037 to 02/01/2039 (b)		1,142,554		1,202,954
5.747% due 05/01/2037 (b)		1,066,088		1,125,031
5.766% due 08/01/2037 (b)		487,249		515,618
5.884% due 02/01/2037 (b)		183,404		193,839
5.925% due 03/01/2037 (b)		255,367		270,267
5.939% due 01/01/2037 (b)		264,804		280,385
5.981% due 04/01/2037 (b)		224,708		238,285
6.00% due 10/01/2019 to 03/01/2036		11,228,831		11,958,085
6.00% TBA **		3,000,000		3,144,258
6.017% due 01/01/2037 to 10/01/2037 (b)		549,179		581,433
6.113% due 12/01/2036 (b)		179,499		190,606
6.121% due 11/01/2037 (b)		521,539		553,810
6.13% due 09/01/2037 (b)		22,151		23,480
6.205% due 09/01/2037 (b)		553,243		586,901
6.272% due 10/01/2036 (b)		244,670		259,809
6.50% due 12/01/2037		2,141,779		2,280,492
6.50% TBA **		2,000,000		2,129,765
7.00% due 01/01/2035 to 06/01/2035		1,202,760		1,319,301
				125,421,435
Government National Mortgage
Association - 2.69%
4.50% TBA **		8,000,000		8,018,751
Government National Mortgage
Association (continued)
5.00% TBA **	$	2,000,000	$	2,049,062
6.50% due 12/15/2032		1,173,890		1,276,632
				11,344,445
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $164,397,616)			$	166,965,699
FOREIGN GOVERNMENT OBLIGATIONS - 1.86%
Brazil - 0.24%
Federative Republic of Brazil
7.125% due 01/20/2037		905,000		1,000,025
Canada - 0.61%
Province of Ontario
4.10% due 06/16/2014		2,445,000		2,566,516
Poland - 0.32%
Republic of Poland
6.375% due 07/15/2019		1,240,000		1,329,888
South Africa - 0.19%
South Africa Government International Bond
6.875% due 05/27/2019 (j)		750,000		805,312
South Korea - 0.50%
Republic of Korea
7.125% due 04/16/2019		1,890,000		2,124,231
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $7,432,396)			$	7,825,972
CORPORATE BONDS - 21.36%
Banking - 1.21%
Bank of America Corp.
5.75% due 12/01/2017		585,000		569,053
7.375% due 05/15/2014		725,000		794,888
7.625% due 06/01/2019		1,250,000		1,376,257
Credit Suisse New York, MTN
5.00% due 05/15/2013		760,000		806,843
HSBC Holdings PLC
6.80% due 06/01/2038		435,000		463,662
US Bank NA, MTN
5.92% due 05/25/2012		1,019,591		1,067,481
				5,078,184
Biotechnology - 0.20%
Amgen, Inc.
6.40% due 02/01/2039		750,000		852,593
Broadcasting - 0.66%
British Sky Broadcasting Group PLC
9.50% due 11/15/2018 (f)		1,655,000		2,123,431
News America, Inc.
5.65% due 08/15/2020 (f)		265,000		272,632
6.90% due 08/15/2039 (f)		375,000		394,658
				2,790,721
Business Services - 0.05%
Thomson Reuters Corp.
5.95% due 07/15/2013		210,000		226,161

The accompanying notes are an integral part of the financial statements.

104

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Cable & Television - 0.33%
AT&T Broadband Corp.
8.375% due 03/15/2013	$	919,000	$	1,062,037
Rogers Cable, Inc.
5.50% due 03/15/2014		290,000		310,474
				1,372,511
Cellular Communications - 1.50%
Rogers Wireless, Inc.
6.375% due 03/01/2014		1,635,000		1,803,183
Verizon Wireless Capital LLC
3.75% due 05/20/2011 (f)		1,190,000		1,228,762
5.55% due 02/01/2014 (f)		295,000		319,010
7.375% due 11/15/2013 (f)		1,880,000		2,154,993
8.50% due 11/15/2018 (f)		630,000		793,552
				6,299,500
Chemicals - 0.57%
The Dow Chemical Company
4.85% due 08/15/2012		900,000		921,825
8.55% due 05/15/2019		1,350,000		1,470,494
				2,392,319
Commercial Services - 0.14%
Hutchison Whampoa International, Ltd.
7.625% due 04/09/2019 (f)		525,000		603,038
Computers & Business Equipment - 0.56%
Cisco Systems, Inc.
5.90% due 02/15/2039		485,000		518,297
Dell, Inc.
5.875% due 06/15/2019		315,000		331,115
Hewlett-Packard Company
4.75% due 06/02/2014		1,149,000		1,229,946
International Business Machines Corp.
7.625% due 10/15/2018		210,000		257,734
				2,337,092
Crude Petroleum & Natural Gas - 1.09%
Anadarko Petroleum Corp.
7.625% due 03/15/2014		820,000		926,876
8.70% due 03/15/2019		1,390,000		1,637,260
Petrobras International Finance Company
7.875% due 03/15/2019		1,785,000		2,012,588
				4,576,724
Domestic Oil - 0.10%
Valero Energy Corp.
9.375% due 03/15/2019		360,000		415,150
Electrical Utilities - 1.50%
Allegheny Energy Supply Company LLC
8.25% due 04/15/2012 (f)		455,000		493,295
Dominion Resources, Inc.
8.875% due 01/15/2019		1,690,000		2,124,090
DPL, Inc.
6.875% due 09/01/2011		785,000		832,028
FirstEnergy Solutions Corp.
4.80% due 02/15/2015 (f)		260,000		265,744
6.05% due 08/15/2021 (f)		370,000		374,033
6.80% due 08/15/2039 (f)		435,000		444,322
Nevada Power Company, Series A
8.25% due 06/01/2011		1,425,000		1,554,180
Progress Energy, Inc.
6.85% due 04/15/2012	$	215,000	$	235,241
				6,322,933
Energy - 0.19%
Duke Energy Corp.
6.30% due 02/01/2014		730,000		805,317
Financial Services - 5.25%
American Express Company
7.25% due 05/20/2014		1,065,000		1,172,027
8.15% due 03/19/2038		655,000		756,422
BP Capital Markets PLC
3.875% due 03/10/2015		2,575,000		2,659,285
Capital One Bank USA NA
8.80% due 07/15/2019		795,000		851,754
Citigroup, Inc.
6.125% due 05/15/2018		900,000		846,221
8.125% due 07/15/2039		570,000		585,901
Credit Suisse New York
5.50% due 05/01/2014		1,125,000		1,209,096
Goldman Sachs Capital II
5.793% until 06/01/2012, then variable due 12/29/2049		1,675,000		1,206,000
Goldman Sachs Group, Inc.
5.125% due 01/15/2015		550,000		569,986
5.45% due 11/01/2012		1,175,000		1,252,530
6.75% due 10/01/2037		1,150,000		1,151,356
7.50% due 02/15/2019		426,000		490,452
JPMorgan Chase & Company
5.375% due 10/01/2012		1,570,000		1,685,712
6.30% due 04/23/2019		555,000		608,434
JPMorgan Chase Bank NA, BKNT
6.00% due 10/01/2017		910,000		959,317
JPMorgan Chase Capital XXV, Series Y
6.80% due 10/01/2037		815,000		768,045
Lazard Group LLC
6.85% due 06/15/2017		1,005,000		983,344
7.125% due 05/15/2015		995,000		999,514
Morgan Stanley
6.00% due 05/13/2014		1,623,000		1,721,011
Morgan Stanley, MTN
5.95% due 12/28/2017		1,020,000		1,042,976
6.625% due 04/01/2018		535,000		571,668
				22,091,051
Food & Beverages - 0.93%
Anheuser-Busch InBev Worldwide, Inc.
6.875% due 11/15/2019 (f)		395,000		441,840
7.75% due 01/15/2019 (f)		925,000		1,083,075
Diageo Capital PLC
7.375% due 01/15/2014		345,000		398,547
Kraft Foods, Inc.
6.125% due 02/01/2018		1,505,000		1,647,043
6.75% due 02/19/2014		295,000		334,798
				3,905,303
Gas & Pipeline Utilities - 1.03%
Energy Transfer Partners LP
8.50% due 04/15/2014		1,175,000		1,350,909
9.00% due 04/15/2019		885,000		1,065,952

The accompanying notes are an integral part of the financial statements.

105

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
Kinder Morgan, Inc.
6.50% due 09/01/2012	$	1,900,000	$	1,933,250
				4,350,111
Healthcare Products - 0.91%
CareFusion Corp.
4.125% due 08/01/2012 (f)		465,000		473,850
5.125% due 08/01/2014 (f)		805,000		834,431
6.375% due 08/01/2019 (f)		565,000		604,558
Roche Holdings, Inc.
6.00% due 03/01/2019		1,731,000		1,915,731
				3,828,570
Healthcare Services - 0.70%
Coventry Health Care, Inc.
5.95% due 03/15/2017		675,000		601,779
Express Scripts, Inc.
5.25% due 06/15/2012		735,000		779,651
6.25% due 06/15/2014		535,000		584,698
UnitedHealth Group, Inc.
6.875% due 02/15/2038		960,000		996,169
				2,962,297
Insurance - 0.09%
Liberty Mutual Group, Inc.
7.50% due 08/15/2036 (f)		498,000		389,189
International Oil - 0.82%
Husky Energy, Inc.
5.90% due 06/15/2014		285,000		306,673
6.80% due 09/15/2037		175,000		188,529
7.25% due 12/15/2019		470,000		531,482
Ras Laffan Liquefied Natural Gas Company, Ltd. III
4.50% due 09/30/2012 (f)		535,000		548,320
5.50% due 09/30/2014 (f)		1,280,000		1,324,540
6.332% due 09/30/2027 (f)		605,000		557,132
				3,456,676
Mining - 0.34%
Rio Tinto Finance USA, Ltd.
5.875% due 07/15/2013		675,000		717,154
9.00% due 05/01/2019		595,000		712,681
				1,429,835
Paper - 0.10%
International Paper Company
7.50% due 08/15/2021		425,000		430,647
Pharmaceuticals - 0.23%
Schering-Plough Corp.
6.55% due 09/15/2037		830,000		985,496
Real Estate - 1.64%
HCP, Inc.
5.65% due 12/15/2013		805,000		775,569
6.00% due 01/30/2017		160,000		145,918
HCP, Inc., MTN
6.30% due 09/15/2016		125,000		117,000
6.70% due 01/30/2018		295,000		273,236
Mack-Cali Realty Corp.
7.75% due 08/15/2019		360,000		364,949
Simon Property Group LP, REIT
6.75% due 05/15/2014		545,000		583,987
WEA Finance LLC
6.75% due 09/02/2019 (f)(j)	$	920,000	$	906,181
7.125% due 04/15/2018 (f)		1,545,000		1,587,197
7.50% due 06/02/2014 (f)		1,385,000		1,487,835
Westfield Group
5.40% due 10/01/2012 (f)		651,000		665,275
				6,907,147
Telephone - 0.68%
British Telecommunications PLC
9.625% due 12/15/2030		665,000		836,221
France Telecom SA
7.75% due 03/01/2011		500,000		543,439
Qwest Corp.
7.50% due 10/01/2014		900,000		892,125
Telefonica Emisiones SAU
5.984% due 06/20/2011		565,000		601,624
				2,873,409
Tobacco - 0.38%
Altria Group, Inc.
9.70% due 11/10/2018		960,000		1,174,315
9.95% due 11/10/2038		325,000		428,358
				1,602,673
Utility Service - 0.16%
Pacificorp
6.25% due 10/15/2037		600,000		684,334
TOTAL CORPORATE BONDS (Cost $84,116,302)			$	89,968,981
MUNICIPAL BONDS - 0.14%
Texas - 0.14%
North Texas Tollway Authority
6.718% due 01/01/2049		555,000		594,516
TOTAL MUNICIPAL BONDS (Cost $555,000)			$	594,516
COLLATERALIZED MORTGAGE
OBLIGATIONS - 19.32%
American Tower Trust, Series 2007-1A, Class AFX
5.4197% due 04/15/2037 (f)		484,000		459,800
Asset Securitization Corp., Series 1996-D3, Class A2
7.7736% due 10/13/2026 (b)		579,000		627,228
Banc of America Commercial Mortgage, Inc., Series 2004-2, Class A3
4.05% due 11/10/2038		156,000		156,002
Banc of America Commercial Mortgage, Inc., Series 2005-5, Class A2
5.001% due 10/10/2045		360,990		367,782
Banc of America Commercial Mortgage, Inc.,Series 2006-5, Class A2
5.317% due 09/10/2047		249,000		249,239
Banc of America Commercial Mortgage, Inc., Series 2006-6, Class A2
5.309% due 10/10/2045		981,000		963,235
Banc of America Commercial Mortgage, Inc., Series 2007-2, Class A2
5.634% due 04/10/2049 (b)		2,296,000		2,261,904

The accompanying notes are an integral part of the financial statements.

106

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Banc of America Commercial Mortgage, Inc., Series 2002-PB2, Class B
6.309% due 06/11/2035	$	143,000	$	144,232
Banc of America Commercial Mortgage, Inc., Series 2003-1, Class A2
4.648% due 09/11/2036		318,000		320,200
Banc of America Commercial Mortgage, Inc., Series 2004-2, Class A5
4.58% due 02/10/2014		78,000		73,578
Bear Stearns Commercial Mortgage Securities, Inc., Series 2001-TOP4, Class A3
5.61% due 11/15/2033		532,000		551,174
Bear Stearns Commercial Mortgage Securities, Inc., Series 2002-PBW1, Class A2
4.72% due 11/11/2035 (b)		246,000		252,503
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-PWR6, Class A6
4.825% due 11/11/2041		88,000		84,631
Bear Stearns Commercial Mortgage Securities, Series 2002-TOP6, Class A2
6.46% due 10/15/2036		632,000		663,787
Bear Stearns Commercial Mortgage Securities, Series 2003-T12, Class A3
4.24% due 08/13/2039 (b)		121,287		121,962
Bear Stearns Commercial Mortgage Securities, Series 2004-T16, Class A6
4.75% due 02/13/2046		225,000		218,316
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A4
5.405% due 12/11/2040		684,000		675,004
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A2
5.588% due 09/11/2042		1,100,000		1,026,062
Bear Stearns Commercial Mortgage Securities, Series 2002-TOP8, Class A2
4.83% due 08/15/2038		730,000		742,513
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class AAB
4.804% due 09/11/2042		347,000		348,913
Commercial Mortgage Asset Trust
6.975% due 01/17/2032		1,743,000		1,852,995
Commercial Mortgage Pass Through Certificates, Series 2004-LB3A, Class A5
5.446% due 07/10/2037 (b)		500,000		487,724
Commercial Mortgage Pass Through Certificates, Series 2001-J2A, Class A2
6.096% due 07/16/2034		868,000		906,215
Commercial Mortgage Pass Through Certificates, Series 2004-LB2A, Class A4
4.715% due 03/10/2039		912,000		902,251
CS First Boston Mortgage Securities Corp, Series 2005-C1, Class A3
4.813% due 02/15/2038		95,000		93,850
CS First Boston Mortgage Securities Corp, Series 2005-C5, Class A4
5.10% due 08/15/2038		336,000		324,836
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A2
4.94% due 12/15/2035		616,000		636,961
CS First Boston Mortgage Securities Corp., Series 2001-CF2, Class A4
6.505% due 02/15/2034	$	408,061	$	423,224
CS First Boston Mortgage Securities Corp., Series 2001-CK1, Class A3
6.38% due 12/18/2035		171,476		177,823
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A4
5.435% due 09/15/2034		173,339		178,571
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A3
6.133% due 04/15/2037		33,000		34,597
CS First Boston Mortgage Securities Corp., Series 2002-CKS4, Class A2
5.183% due 11/15/2036		1,017,000		1,048,450
CS First Boston Mortgage Securities Corp., Series 2003-C5, Class A4
4.90% due 12/15/2036 (b)		210,000		210,497
CS First Boston Mortgage Securities Corp., Series 2003-CK2, Class A4
4.801% due 03/15/2036		180,000		184,627
CS First Boston Mortgage Securities Corp., Series 2003-CPN1, Class A2
4.597% due 03/15/2035		131,000		129,673
DLJ Commercial Mortgage Corp., Series 2000-CKP1, Class A1B
7.18% due 11/10/2033		342,093		353,237
Federal Home Loan Mortgage Corp., Series 2003-2676, Class CY
4.00% due 09/15/2018		282,000		287,149
Federal Home Loan Mortgage Corp., Series 2003-2690, Class TV
4.50% due 11/15/2025		217,000		226,312
Federal Home Loan Mortgage Corp., Series 2004-2765, Class CT
4.00% due 03/15/2019		193,000		197,548
Federal Home Loan Mortgage Corp., Series 2004-2875, Class HB
4.00% due 10/15/2019		202,000		204,158
Federal Home Loan Mortgage Corp., Series 2005-3008, Class JM
4.50% due 07/15/2025		302,000		312,457
Federal Home Loan Mortgage Corp., Series 2005-3028, Class PG
5.50% due 09/15/2035		132,206		139,899
Federal Home Loan Mortgage Corp., Series 2009-K003, Class AAB
4.768% due 05/25/2018		545,000		556,323
Federal Home Loan Mortgage Corp., Series 2590,Class BY
5.00% due 03/15/2018		73,000		77,073
Federal Home Loan Mortgage Corp., Series 3465,Class HA
4.00% due 07/15/2017		482,479		499,241
Federal Home Loan Mortgage Corp., Series 2003-2590, Class NU
5.00% due 06/15/2017		381,000		397,166
Federal Home Loan Mortgage Corp., Series 2004-2790, Class TN
4.00% due 05/15/2024		408,000		408,662

The accompanying notes are an integral part of the financial statements.

107

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (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 2005-3035, Class PA
5.50% due 09/15/2035	$	234,383	$	249,317
Federal Home Loan Mortgage Corp., Series 2007-3372, Class BD
4.50% due 10/15/2022		339,000		356,223
Federal National Mortgage Association, Series 2001-81, Class HE
6.50% due 01/25/2032		6,017,133		6,497,720
Federal National Mortgage Association, Series 2002-94, Class HQ
4.50% due 01/25/2018		280,000		292,476
Federal National Mortgage Association, Series 2003-125, Class AY
4.00% due 12/25/2018		82,000		84,030
Federal National Mortgage Association, Series 2004-3, Class HT
4.00% due 02/25/2019		111,000		113,789
Federal National Mortgage Association, Series 2004-80, Class LE
4.00% due 11/25/2019		1,528,000		1,552,035
Federal National Mortgage Association, Series 2004-81, Class KE
4.50% due 11/25/2019		150,000		155,540
Federal National Mortgage Association, Series 2007-77, Class MH
6.00% due 12/25/2036		7,614,261		8,028,592
Federal National Mortgage Association, Series 2008-66, Class B
5.00% due 08/25/2023		83,000		86,676
Federal National Mortgage Association, Series 2003-108, Class BE
4.00% due 11/25/2018		333,000		341,314
Federal National Mortgage Association, Series 2003-3, Class HJ
5.00% due 02/25/2018		324,000		344,990
Federal National Mortgage Association, Series 2004-60, Class PA
5.50% due 04/25/2034		228,521		241,763
Federal National Mortgage Association, Series 2005-58, Class MA
5.50% due 07/25/2035		190,964		202,887
Federal National Mortgage Association, Series 2005-69, Class JM
4.50% due 08/25/2025		331,000		342,657
Federal National Mortgage Association, Series 2007-113, Class DB
4.50% due 12/25/2022		340,000		353,510
Federal National Mortgage Association, Series 2007-30, Class MA
4.25% due 02/25/2037		592,457		605,618
First Horizon Alternative Mortgage Securities, Series 2006-FA6, Class 2A10
6.00% due 11/25/2036		189,046		147,352
First Union National Bank Commercial Mortgage, Series 2000-C2, Class A2
7.202% due 10/15/2032		238,025		246,079
First Union National Bank Commercial Mortgage, Series 1999-C4, Class A2
7.39% due 12/15/2031		2,068		2,066
First Union National Bank Commercial Mortgage, Series 2001-C4, Class B
6.417% due 12/12/2033	$	188,000	$	188,818
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A1
5.56% due 06/10/2038		179,371		184,571
GE Capital Commercial Mortgage Corp., Series 2002-1A, Class A3
6.269% due 12/10/2035		252,000		265,302
GE Capital Commercial Mortgage Corp., Series 2005-C4, Class A4
5.5127% due 11/10/2045 (b)		2,181,000		2,041,206
GE Capital Commercial Mortgage Corp., Series 2001-2, Class A3
6.03% due 08/11/2033		85,580		87,032
GMAC Commercial Mortgage Securities, Inc., Series 2000-C1, Class A2
7.724% due 03/15/2033 (b)		259,135		261,140
GMAC Commercial Mortgage Securities, Inc., Series 2002-C3, Class A2
4.93% due 07/10/2039		197,000		201,679
GMAC Commercial Mortgage Securities, Inc., Series 2003-C2, Class A2
5.6684% due 05/10/2040 (b)		193,000		198,186
GMAC Commercial Mortgage Securities, Inc., Series 2003-C3, Class A4
5.023% due 04/10/2040		428,000		423,491
Government National Mortgage Association, Series 2006-37, Class JG
5.00% due 07/20/2036		254,000		266,930
Greenwich Capital Commercial Funding Corp, Series 2005-GG5, Class AAB
5.19% due 04/10/2037 (b)		642,000		642,667
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A5
5.224% due 04/10/2037 (b)		2,526,000		2,290,723
GS Mortgage Securities Corp II, Series 2001-GL3A, Class A2
6.449% due 08/05/2018 (b)		949,000		997,676
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2002-CIB4, Class A3
6.162% due 05/12/2034		1,431,000		1,503,721
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2003-PM1A, Class A4
5.326% due 08/12/2040 (b)		1,000,000		1,025,353
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2007-CB19, Class A2
5.815% due 02/12/2049 (b)		189,000		189,253
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2007-LDPX, Class A2S
5.305% due 01/15/2049		1,353,000		1,310,149
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIB3, Class A3
6.465% due 11/15/2035		1,264,000		1,289,397
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A2
6.0512% due 04/15/2045 (b)		309,000		312,604
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2002-CIB5, Class A2
5.161% due 10/12/2037		149,000		152,906

The accompanying notes are an integral part of the financial statements.

108

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A1
4.655% due 08/15/2042	$	32,910	$	33,104
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A4
4.918% due 10/15/2042 (b)		346,000		330,573
JPMorgan Commercial Mortgage Finance Corp., Series 2000-C10, Class A2
7.371% due 08/15/2032 (b)		191,749		193,527
LB-UBS Commercial Mortgage Trust, Series 2000-C5, Class A2
6.51% due 12/15/2026		271,885		282,136
LB-UBS Commercial Mortgage Trust, Series 2002-C4, Class A5
4.853% due 09/15/2031		516,000		527,690
LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4
4.568% due 01/15/2031		1,363,000		1,260,772
LB-UBS Commercial Mortgage Trust, Series 2004-C7, Class A5
4.628% due 10/15/2029		232,000		210,865
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A2
5.084% due 02/15/2031		586,000		585,229
LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A2
5.30% due 11/15/2038		924,000		921,209
LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A2
5.318% due 02/15/2040		469,000		466,494
LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A3
5.398% due 02/15/2040		451,000		432,573
LB-UBS Commercial Mortgage Trust, Series 2000-C4, Class A2
7.37% due 08/15/2026		110,331		112,900
LB-UBS Commercial Mortgage Trust, Series 2001-C2, Class A2
6.653% due 11/15/2027		242,000		253,291
LB-UBS Commercial Mortgage Trust, Series 2002-C2, Class A4
5.594% due 06/15/2031		842,000		878,289
LB-UBS Commercial Mortgage Trust, Series 2003-C3, Class A4
4.166% due 05/15/2032		88,000		86,805
Merrill Lynch Mortgage Trust, Series 2003-KEY1,Class A4
5.236% due 11/12/2035 (b)		763,000		767,551
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class A3A
4.949% due 07/12/2038 (b)		338,000		330,965
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-1, Class A2
5.439% due 02/12/2039 (b)		1,765,000		1,773,684
Morgan Stanley Capital I, Inc., Series 2005-T17, Class A5
4.78% due 12/13/2041		175,000		165,447
Morgan Stanley Capital I, Series 2004-HQ4, Class A7
4.97% due 04/14/2040		1,282,000		1,208,322
Morgan Stanley Capital I, Series 2004-IQ7, Class A4
5.5376% due 06/15/2038 (b)	$	605,000	$	573,443
Morgan Stanley Capital I, Series 2005-HQ5, Class A4
5.168% due 01/14/2042		169,000		165,441
Morgan Stanley Capital I, Series 2005-HQ6,Class A4A
4.989% due 08/13/2042		3,400,000		3,270,887
Morgan Stanley Capital I, Series 2006-HQ8, Class A2
5.374% due 03/12/2044		562,000		564,234
Morgan Stanley Capital I, Series 2007-HQ11, Class A31
5.439% due 02/12/2044 (b)		210,000		195,141
Morgan Stanley Capital I, Series 2007-IQ14, Class A2
5.61% due 04/15/2049		506,000		468,975
Morgan Stanley Capital I, Series 2003-IQ5, Class A4
5.01% due 04/15/2038		294,978		301,944
Morgan Stanley Capital I, Series 2003-T11, Class A4
5.15% due 06/13/2041		731,000		738,475
Morgan Stanley Capital I, Series 2004-HQ3, Class A4
4.80% due 01/13/2041		134,000		128,690
Morgan Stanley Capital I, Series 2005-HQ5, Class AAB
5.037% due 01/14/2042		748,000		766,177
Morgan Stanley Capital I, Series 2005-HQ7, Class AAB
5.1849% due 11/14/2042 (b)		494,000		507,294
Morgan Stanley Dean Witter Capital I, Series 2002-HQ, Class A3
6.51% due 04/15/2034		159,479		168,678
Morgan Stanley Dean Witter Capital I, Series 2002-IQ2, Class A4
5.74% due 12/15/2035		150,014		157,129
Morgan Stanley Dean Witter Capital I, Series 2003-HQ2, Class A2
4.92% due 03/12/2035		500,000		512,645
Morgan Stanley Dean Witter Capital I, Series 2001-TOP1, Class A4
6.66% due 02/15/2033		524,458		546,282
Morgan Stanley Dean Witter Capital I, Series 2001-TOP5, Class A4
6.39% due 10/15/2035		2,003,348		2,115,702
Morgan Stanley Mortgage Loan Trust, Series 2007-6XS, Class 2A1S
0.3756% due 02/25/2047 (b)		101,553		76,568
Nomura Asset Securities Corp.
6.69% due 03/15/2030		953,000		1,019,107
Salomon Brothers Mortgage Securities VII, Series 2002-KEY2, Class A2
4.467% due 03/18/2036		278,228		284,321
Salomon Brothers Mortgage Securities VII, Series 2000-C3, Class A2
6.592% due 12/18/2033		844,288		867,219
Wachovia Bank Commercial Mortgage Trust, Series 2002-C1, Class A4
6.287% due 04/15/2034		347,000		375,181

The accompanying notes are an integral part of the financial statements.

109

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Wachovia Bank Commercial Mortgage Trust, Series 2003-C5, Class A2
3.989% due 06/15/2035	$	136,000	$	133,405
Wachovia Bank Commercial Mortgage Trust, Series 2003-C6, Class A3
4.957% due 08/15/2035		367,000		362,379
Wachovia Bank Commercial Mortgage Trust, Series 2003-C8, Class A3
4.445% due 11/15/2035		197,000		194,350
Wachovia Bank Commercial Mortgage Trust, Series 2004-C11, Class A4
5.03% due 01/15/2041		379,000		340,785
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A4
4.935% due 04/15/2042		105,000		100,498
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $78,974,047)			$	81,393,398
ASSET BACKED SECURITIES - 5.20%
American Express Credit Account Master Trust, Series 2009-2, Class A
1.5088% due 03/15/2017 (b)(j)		1,378,000		1,378,000
Americredit Prime Automobile Receivable, Series 2007-1, Class A3
5.27% due 11/08/2011 (b)		223,300		224,709
BA Credit Card Trust, Series 2006-A12, Class A12
0.2928% due 03/15/2014 (b)		318,000		310,613
BA Credit Card Trust, Series 2006-A8, Class A8
0.3028% due 05/16/2016 (b)		286,000		269,789
BA Credit Card Trust, Series 2007-A6, Class A6
0.3328% due 09/15/2016 (b)		362,000		339,936
Capital One Multi-Asset Execution Trust, Series 2006-A11, Class A11
0.3628% due 06/17/2019 (b)		1,163,000		1,054,387
Capital One Multi-Asset Execution Trust, Series 2008-A3, Class A3
5.05% due 02/15/2016		1,785,000		1,904,555
Chase Issuance Trust, Series 2008-A9, Class A9
4.26% due 05/15/2013		272,000		284,105
Citicorp Residential Mortgage Securities, Inc., Series 2006-1, Class A2
5.682% due 07/25/2036		57,948		57,453
Citigroup Mortgage Loan Trust, Inc., Series 2007-AHL1, Class A2A
0.3056% due 12/25/2036 (b)		125,510		110,830
Daimler Chrysler Auto Trust, Series 2008-B, Class A2B
1.2056% due 07/08/2011 (b)		325,972		326,338
Daimler Chrysler Auto Trust, Series 2007-A, Class A4
2.00% due 03/08/2013		835,000		869,409
Daimler Chrysler Master Owner Trust, Series 2006-A, Class A
0.3028% due 11/15/2011 (b)		22,937		22,827
Discover Card Master Trust I, Series 2005-4, Class A2
0.3628% due 06/16/2015 (b)		266,000		254,593
Discover Card Master Trust I, Series 2006-2, Class A3
0.3528% due 01/19/2016 (b)		771,000		729,839
Discover Card Master Trust I, Series 2006-3, Class A1
0.3028% due 03/15/2014 (b)	$	212,000	$	206,717
Discover Card Master Trust, Series 2007-A2, Class A2
0.9694% due 06/15/2015 (b)		2,345,000		2,264,007
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2
5.261% due 04/25/2037 (f)		480,000		390,439
Ford Credit Floorplan Master Owner Trust, Series 2006-4, Class A
0.5228% due 06/15/2013 (b)		554,000		518,266
Harley-Davidson Motorcycle Trust, Series 2009-1,Class A4
4.55% due 01/15/2017		242,000		251,245
Harley-Davidson Motorcycle Trust, Series 2009-2,Class A4
3.32% due 02/15/2017		443,000		445,916
Harley-Davidson Motorcycle Trust, Series 2008-1, Class A3A
4.25% due 02/15/2013		361,000		369,067
Honda Auto Receivables Owner Trust, Series 2009-3, Class A4
3.30% due 09/15/2015		1,626,000		1,659,173
MBNA Master Credit Card Trust, Series 1997-B,Class A
0.4328% due 08/15/2014 (b)		2,029,000		1,970,690
Morgan Stanley ABS Capital I, Series 2007-HE2, Class A2A
0.3056% due 01/25/2037 (b)		66,813		57,507
Morgan Stanley Home Equity Loans, Series 2007-1, Class A1
0.3156% due 12/25/2036 (b)		62,020		57,546
Nissan Auto Receivables Owner Trust, Series 2009-A, Class A4
4.74% due 08/17/2015		237,000		244,882
SLC Student Loan Trust, Series 2008-1, Class A4A
2.2294% due 12/15/2032 (b)		1,233,000		1,229,768
SLM Student Loan Trust, Series 2002-5, Class A4L
0.7794% due 09/17/2018 (b)		121,067		120,012
SLM Student Loan Trust, Series 2003-3, Class A4
0.8494% due 12/15/2017 (b)		157,897		152,875
SLM Student Loan Trust, Series 2003-6, Class A4
0.8294% due 12/17/2018 (b)		128,268		126,873
SLM Student Loan Trust, Series 2008-4, Class A4
2.1537% due 07/25/2022 (b)		1,314,000		1,322,104
SLM Student Loan Trust, Series 2008-5, Class A4
2.2037% due 07/25/2023 (b)		1,320,000		1,347,296
SLM Student Loan Trust, Series 2008-6, Class A4
1.6037% due 07/25/2023 (b)		321,000		318,805
Swift Master Auto Receivables Trust, Series 2007-1, Class A
0.3728% due 06/15/2012 (b)		164,000		158,260
Triad Auto Receivables Owner Trust, Series 2006-B, Class A3
5.41% due 08/12/2011		196,371		197,192
Triad Auto Receivables Owner Trust, Series 2006-C, Class A3
5.26% due 11/14/2011		100,735		101,146

The accompanying notes are an integral part of the financial statements.

110

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Core Bond Fund (continued)

	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
World Omni Auto Receivables Trust, Series 2009-A, Class A4
5.12% due 05/15/2014	$	245,000	$	258,578
TOTAL ASSET BACKED SECURITIES (Cost $21,361,320)			$	21,905,747
SUPRANATIONAL OBLIGATIONS - 0.35%
Banking - 0.35%
Export-Import Bank of Korea
5.50% due 10/17/2012		565,000		584,148
5.875% due 01/14/2015		850,000		883,745
				1,467,893
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $1,419,150)			$	1,467,893
REPURCHASE AGREEMENTS - 0.25%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,074,002 on 09/01/2009, collateralized by $1,065,000 Federal National Mortgage Association, 5.625% due 09/18/2017 (valued at $1,095,619, including interest)	$	1,074,000	$	1,074,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,074,000)			$	1,074,000
SHORT TERM INVESTMENTS - 3.95%
Bank of America Corp.
0.19% due 09/01/2009	$	6,197,000	$	6,197,000
Deutsche Bank Financial LLC
0.13% due 09/01/2009		4,229,000		4,229,000
UBS Finance Delaware LLC
0.19% due 09/01/2009		6,197,000		6,197,000
TOTAL SHORT TERM INVESTMENTS (Cost $16,623,000)			$	16,623,000
Total Investments (Core Bond Fund) (Cost $452,431,977) - 110.27%			$	464,505,456
Other assets and liabilities, net - (10.27)%				(43,258,844	)
TOTAL NET ASSETS - 100.00%			$	421,246,612

Schedule of Securities Sold Short

	Shares or Principal Amount		Value
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 100.00%
Federal National Mortgage Association
5.00%, TBA **	$	2,500,000	$	2,565,625
5.50%, TBA **		4,500,000		4,720,782
6.00%, TBA **		2,500,000		2,648,828
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Proceeds $9,867,188)			$	9,935,235
Total Securities Sold Short (Core Bond Fund) (Proceeds $9,867,188)			$	9,935,235

Emerging Markets Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 96.54%
Brazil - 7.26%
Acucar Guarani SA *		56,500	$	176,872
Banco Alfa de Investimento SA *		10,300		40,223
Bematech SA		83,600		360,180
BM&F BOVESPA SA		1,173,500		7,235,141
BR Malls Participacoes SA *		180,900		1,842,882
Brascan Residential Properties SA		242,200		976,665
Braskem SA, SADR * (a)		164,396		1,834,659
Camargo Correa Desenvolvimento Imobiliario SA		69,100		207,150
Cia Providencia Industria e Comercio SA		30,900		100,666
Cosan SA Industria e Comercio *		198,100		2,218,863
Cremer SA		77,000		608,744
Empresa Brasileira de Aeronautica SA, ADR *		28,000		594,720
Eternit SA		35,600		136,945
Even Construtora e Incorporadora SA		223,200		807,674
Ez Tec Empreendimentos e Participacoes SA		79,800		299,351
Gafisa SA		256,600		3,718,229
Gerdau SA, SADR (a)		1,530,852		17,987,511
Gerdau SA		234,900		2,125,031
Grendene SA		80,200		1,071,489
Guararapes Confeccoes SA		15,200		312,759
Helbor Empreendimentos SA		39,800		203,783
IdeiasNet SA *		161,600		305,245
Iguatemi Empresa de Shopping Centers SA		77,100		948,256
Industrias Romi SA *		138,700		886,055
JBS SA		806,200		3,345,086
JHSF Participacoes SA		360,800		641,312
Kepler Weber SA *		670,300		56,905
Kroton Educacional SA		19,200		183,371
Kroton Educacional SA *		12,713		121,417
Log-in Logistica Intermodal SA		71,500		314,878
Marfrig Frigorificos e Comercio de Alimentos SA *		32,600		273,295
Medial Saude SA *		84,300		420,449
MPX Energia SA		68,000		620,576
Multiplan Empreendimentos Imobiliarios SA		41,400		560,142
Obrascon Huarte Lain Brasil SA		53,600		676,008
Paranapanema SA *		361,900		902,494
Plascar Participacoes Industriais SA *		118,100		147,883
Porto Seguro SA *		84,500		775,641
Positivo Informatica SA		57,300		458,777
Rodobens Negocios Imobiliarios SA		33,200		317,080

The accompanying notes are an integral part of the financial statements.

111

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Brazil (continued)
Rossi Residencial SA		242,100	$	1,536,327
Sao Carlos Empreendimentos e Participacoes SA		79,700		655,462
Sao Martinho SA *		109,400		981,564
Sul America SA		89,900		1,776,821
Suzano Papel e Celulose SA *		337,400		3,186,565
Trisul SA		19,600		53,038
Ultrapar Participacoes SA, ADR		161,060		5,840,036
Usinas Siderurgicas de Minas Gerais SA		168,400		3,970,762
Votorantim Celulose e Papel SA, SADR * (a)		155,200		2,453,712
				75,268,694
Chile - 2.73%
Banco de Credito e Inversiones		26,618		725,836
Cementos Bio-Bio SA		2,795		5,275
Cia General de Electricidad		397,095		2,595,908
Cintac SA		78,352		33,251
Companhia de Consumidores de Gas de Santiago SA		229,623		953,739
Companhia Sudamericana de Vapores SA *		1,025,846		774,363
Corpbanca SA, SADR		11,885		338,723
Cristalerias de Chile SA		62,943		636,648
Empresas CMPC SA		178,028		5,147,139
Empresas Copec SA		663,096		7,891,291
Enersis SA, SADR (a)		459,633		7,956,247
Industrias Forestales SA		150,246		35,272
Madeco SA, SADR		50,956		328,666
Masisa SA		6,326,453		828,294
Vina San Pedro SA		16,425,632		124,583
				28,375,235
China - 3.27%
Angang New Steel Company, Ltd., Class H (a)		1,288,000		2,443,990
Bank of China, Ltd.		17,875,000		8,690,643
Beijing Capital International Airport Company, Ltd., Class H *		3,036,000		1,694,872
Chaoda Modern Agriculture Holdings, Ltd.		3,681,656		2,196,473
China Communications Services Corp., Ltd., Class H		306,000		171,574
China COSCO Holdings Company, Ltd.		2,490,000		3,014,092
China Rare Earth Holdings, Ltd. - Hong Kong Exchange		1,272,000		231,873
China Shineway Pharmaceutical Group, Ltd. -Hong Kong Exchange		142,000		133,144
China Shipping Container Lines Company, Ltd. *		4,286,850		1,569,677
China Shipping Development Company, Ltd., Class H		1,188,000		1,485,624
Country Garden Holdings Company, Ltd.		3,687,000		1,521,378
Dongfeng Motor Group Company, Ltd.		2,576,000		2,673,936
Guangshen Railway Company, Ltd., Class H		110,000		47,812
Guangshen Railway Company, Ltd., SADR		38,900		855,411
Hunan Non Ferrous Metal Corp., Ltd. *		2,694,000		728,468
KWG Property Holding, Ltd.		1,282,987		755,283
Maanshan Iron & Steel Company, Ltd. *		2,258,000		1,386,565
Qingling Motors Company, Ltd.		1,170,000		219,932
Semiconductor Manufacturing International Corp., SADR *		209,323		523,308
Semiconductor Manufacturing International Corp. *		14,639,000		699,998
Shanghai Forte Land Company		1,195,405		337,543
Shui On Land, Ltd.		3,566,750		1,977,615
Sinotrans, Ltd., Class H		2,507,000		593,190
				33,952,401
Czech Republic - 0.27%
Pegas Nonwovens SA		21,000		532,626
Unipetrol AS * (a)		306,126		2,272,134
				2,804,760
Hong Kong - 7.22%
Agile Property Holdings, Ltd.		2,208,000		2,488,104
Amvig Holdings, Ltd.		666,000		453,330
Baoye Group Company, Ltd.		508,000		301,433
Beijing Capital Land, Ltd.		1,438,000		505,445
Beijing Development Hong Kong, Ltd. *		190,000		22,543
Beijing Enterprises Holdings, Ltd.		647,500		3,216,222
Beijing North Star Company, Ltd.		1,188,000		408,985
Bosideng International Holdings, Ltd.		2,970,000		455,848
Brilliance China Automotive Holdings, Ltd. *		3,630,000		421,293
Catic Shenzhen Holdings, Ltd. *		140,000		37,919
China Aerospace International Holdings, Ltd. *		2,697,400		250,583
China Agri-Industries Holdings, Ltd.		2,464,000		1,731,914
China Aoyuan Property Group, Ltd. *		1,372,000		238,827
China Everbright, Ltd.		999,000		2,364,423
China Grand Forestry Resources Group, Ltd. *		7,372,000		299,156
China Haidian Holdings, Ltd.		726,000		64,714
China Merchants Holdings International Company, Ltd.		1,207,771		3,914,413
China Molybdenum Company, Ltd. (f)		1,008,000		754,980
China Nickel Resources Holding Company, Ltd.		886,000		160,469
China Pharmaceutical Group, Ltd.		1,286,000		701,647
China Properties Group, Ltd. *		947,000		246,269
China Resources Enterprises, Ltd.		1,554,000		3,629,531
China Travel International Investment Hong Kong, Ltd.		4,678,000		925,595
Chongqing Iron & Steel Company, Ltd.		886,000		326,706
Citic Pacific, Ltd.		1,420,923		3,802,371
CITIC Resources Holdings, Ltd. *		4,270,000		1,177,682
COFCO International, Ltd.		866,000		536,874
Comba Telecom Systems Holdings, Ltd.		618,200		402,466
Cosco International Holdings, Ltd.		1,105,040		451,424
Cosco Pacific, Ltd.		1,812,000		2,710,424
DaChan Food Asia, Ltd.		655,000		126,971
Dalian Port PDA Company, Ltd.		1,324,000		574,785
Denway Motors, Ltd.		5,532,000		2,496,761
Digital China Holdings, Ltd.		103,000		87,140
Dynasty Fine Wines Group, Ltd.		654,000		133,534
First Tractor Company, Ltd.		236,000		91,885
Fosun International		2,194,000		1,700,672
Fu Ji Food & Catering Services Holdings, Ltd. *		410,000		402,041
Geely Automobile Holdings Company, Ltd.		2,210,000		535,803
Global Bio-Chem Technology Group Company, Ltd.		2,198,000		534,147
Great Wall Motor Company, Ltd.		632,000		544,667

The accompanying notes are an integral part of the financial statements.

112

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Great Wall Technology Company, Ltd.		142,000	$	42,323
Greentown China Holdings, Ltd. *		866,000		1,030,363
Guangzhou Investment Company, Ltd.		6,164,000		1,075,658
Guangzhou Pharmaceutical Company, Ltd.		376,000		180,110
Hainan Meilan International Airport Company, Ltd.		235,000		165,382
Harbin Power Equipment Company, Ltd.		1,056,000		1,054,029
Hidili Industry International Development, Ltd. *		1,623,000		1,624,433
HKC Holdings, Ltd.		3,833,409		282,523
Hopson Development Holdings, Ltd., GDR		1,006,000		1,483,906
Innomaxx Biotechnology Group, Ltd. *		6,340,000		290,729
Intime Department Store Group Company, Ltd.		990,000		665,234
Jingwei Textile Machinery Company, Ltd.		62,000		14,689
Ju Teng International Holdings, Ltd.		936,000		694,009
Kingway Brewery Holdings, Ltd. *		522,000		89,548
Lingbao Gold Company, Ltd. *		446,000		153,341
Lonking Holdings, Ltd.		941,000		561,980
Minmetals Resources, Ltd. *		1,240,000		307,861
Minth Group, Ltd.		786,000		700,392
Nan Hai Corp., Ltd. *		20,500,000		187,743
Neo-China Group Holdings, Ltd. (l)		341,500		0
Nine Dragons Paper Holdings, Ltd.		1,793,000		1,988,295
Poly Hong Kong Investment, Ltd.		776,000		632,049
Qin Jia Yuan Media Services Company, Ltd.		481,176		95,103
Qunxing Paper Holdings Company, Ltd.		549,000		242,175
Shanghai Industrial Holdings, Ltd.		742,000		3,573,091
Shanghai Prime Machinery Company, Ltd.		1,124,000		199,056
Shanghai Real Estate, Ltd. *		2,860,000		287,646
Shenzhen International Holdings, Ltd.		13,565,000		997,143
Shenzhen Investment, Ltd.		2,658,000		952,848
Shenzhou International Group Holdings, Ltd.		274,000		251,623
Shimao Property Holdings, Ltd., GDR		2,075,500		3,093,506
Shougang Concord International Enterprises Company, Ltd.		5,152,000		928,965
Sichuan Xinhua Winshare Chainstore Company, Ltd.		628,000		224,741
Sino Biopharmaceutical, Ltd.		357,333		69,075
Sino Union Petroleum & Chemical International, Ltd. *		3,390,000		293,133
SinoCom Software Group, Ltd.		17,000		1,802
Sinofert Holdings, Ltd.		172,000		77,791
Sinolink Worldwide Holdings, Ltd.		2,614,000		478,733
Sino-Ocean Land Holdings, Ltd.		4,171,639		3,808,972
Sinopec Kantons Holdings, Ltd.		620,000		187,939
Skyworth Digital Holdings, Ltd.		2,112,000		743,790
Stone Group Holdings, Ltd. *		750,000		39,667
TCL Communication Technology Holdings, Ltd. *		275,600		31,285
TCL Multimedia Technology Holdings, Ltd. *		675,200		307,790
Tian An China Investment, Ltd.		888,000		487,264
Tianjin Port Development Holdings, Ltd.		1,118,000		432,587
TPV Technology, Ltd.		1,882,000		1,023,423
Travelsky Technology, Ltd., Class H		994,000		647,507
Weiqiao Textile Company, Ltd.		695,500		486,164
Wuyi International Pharmaceutical Company, Ltd.		525,000		51,342
Xiamen International Port Company, Ltd.		1,446,000		252,397
Xingda International Holdings, Ltd.		1,029,000		362,873
Xinjiang Xinxin Mining Industry Company, Ltd.		1,190,000		633,140
Xiwang Sugar Holdings Company, Ltd.		449,020		114,865
Zhejiang Glass Company, Ltd. *		172,000		48,333
				74,880,362
Hungary - 2.53%
Danubius Hotel and Spa PLC *		951		17,955
Egis Gyogyszergyar Nyrt.		11,535		1,211,956
FHB Mortgage Bank PLC * (a)		29,649		163,544
Fotex PLC *		65,740		149,711
MOL Magyar Olaj & Gazipari Rt. *		143,846		11,283,437
OTP Bank Rt. * (a)		513,756		13,330,442
Raba Jarmuipari Holding Nyilvanosan Mukodo Rt. *		11,794		38,887
Synergon Information Systems, Ltd. *		2,700		11,726
				26,207,658
India - 12.27%
ABG Shipyard, Ltd.		4,049		17,896
ACC, Ltd.		39,341		645,278
Aditya Birla Nuvo, Ltd.		56,676		1,170,071
Ador Welding, Ltd.		5,167		14,994
Aftek, Ltd.		28,741		12,235
Alembic, Ltd.		38,000		36,438
Allahabad Bank		295,867		535,014
Alok Industries, Ltd.		223,780		102,807
Ambuja Cements, Ltd.		684,511		1,388,750
Amtek Auto, Ltd.		98,948		318,275
Andhra Bank		215,172		394,298
Ansal Properties & Infrastructure, Ltd.		9,294		15,286
Apollo Hospitals Enterprise, Ltd.		37,049		398,079
Apollo Tyres, Ltd.		154,850		134,906
Arvind Mills, Ltd. *		104,142		71,101
Ashapura Minechem, Ltd.		5,400		4,749
Ashok Leyland, Ltd.		1,278,503		1,020,712
Aurobindo Pharma, Ltd.		69,793		1,007,120
Avaya Global Connect, Ltd.		5,668		16,456
Axis Bank, Ltd.		158,880		2,940,222
Bajaj Auto Finance, Ltd.		11,946		50,455
Bajaj Auto, Ltd.		53,373		513,079
Bajaj Finserv, Ltd.		24,676		142,257
Bajaj Hindusthan, Ltd.		135,981		503,876
Balaji Telefilms, Ltd.		11,528		14,591
Ballarpur Industries, Ltd.		597,281		295,247
Balmer Lawrie & Company, Ltd.		1,500		15,655
Balrampur Chini Mills, Ltd.		392,549		935,219
Bank of Maharashtra		130,888		108,455
Bank of Rajasthan		47,965		75,953
Bata India, Ltd.		25,249		86,838
Bharat Earth Movers, Ltd.		27,755		629,764
Bharat Forge, Ltd.		126,661		569,668
Bhushan Steel, Ltd.		16,585		365,334
Biocon, Ltd.		138,485		674,381
Birla Corp., Ltd.		41,760		254,922
Bombay Dyeing & Manufacturing Company, Ltd.		6,668		51,185
Bombay Rayon Fashions, Ltd.		46,150		191,157

The accompanying notes are an integral part of the financial statements.

113

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
India (continued)
Cairn India, Ltd. *		537,071	$	2,926,047
Century Textile & Industries, Ltd.		32,699		309,648
Chambal Fertilizers & Chemicals, Ltd.		224,870		243,934
Chi Investments, Ltd. *		6,513		7,608
Cholamandalam DBS Finance, Ltd. *		7,563		8,959
City Union Bank, Ltd.		58,500		32,915
CMC, Ltd.		1,800		37,154
Coromandel Fertilisers, Ltd.		12,000		42,175
Cranes Software International, Ltd.		3,000		2,763
Dalmia Cement Bharat, Ltd.		6,800		29,563
DCM Shriram Consolidated, Ltd.		26,804		34,687
Deepak Fertilizers & Petrochemicals Corp., Ltd.		34,858		60,574
DLF, Ltd.		264,611		2,290,520
Dr. Reddy’s Laboratories, Ltd.		62,300		1,009,810
Edelweiss Capital, Ltd.		11,400		102,203
Eicher Motors, Ltd.		7,035		64,070
EID Parry India, Ltd.		40,945		273,786
Elder Pharmaceuticals, Ltd.		3,200		19,352
Electrosteel Castings, Ltd.		47,000		40,631
Escorts, Ltd. *		36,222		53,624
Essel Propack, Ltd.		6,500		4,155
Eveready Industries, Ltd. *		21,000		27,257
FDC, Ltd.		31,000		30,303
Federal Bank, Ltd.		274,293		1,225,206
Financial Technologies, Ltd.		37,632		1,155,078
Finolex Cables, Ltd.		27,100		23,731
Finolex Industries, Ltd.		62,340		69,505
Fortis Healthcare, Ltd. *		135,361		308,819
Gammon India, Ltd.		66,972		254,148
Geodesic, Ltd.		40,000		101,278
Gitanjali Gems, Ltd.		31,915		77,708
Godrej Industries, Ltd.		116,069		452,605
Graphite India, Ltd.		75,397		91,489
Grasim Industries, Ltd.		70,103		3,847,339
Great Eastern Shipping Company, Ltd.		121,552		704,460
Great Offshore, Ltd. *		45,068		489,130
GTL, Ltd.		48,244		290,648
Gujarat Alkalies & Chemicals, Ltd.		35,989		83,277
Gujarat Ambuja Exports, Ltd.		15,000		7,368
Gujarat Flourochemicals, Ltd.		13,363		40,753
Gujarat Narmada Valley Fertilizers Company, Ltd.		51,735		101,704
Gujarat State Fertilisers & Chemicals, Ltd.		17,219		52,153
HCL Infosystems, Ltd.		148,100		455,025
HCL Technologies, Ltd.		351,250		2,159,189
HEG, Ltd.		13,300		71,900
Hexaware Technologies, Ltd.		38,931		66,947
Himatsingka Seide, Ltd. *		4,000		2,925
Hindalco Industries, Ltd. *		151,306		327,463
Hinduja TMT, Ltd.		5,652		26,988
Hindustan Construction Company, Ltd.		237,251		538,921
Hindustan Motors, Ltd. *		62,438		29,441
Hotel Leela Venture, Ltd.		112,844		77,268
Housing Development & Infrastructure, Ltd. *		11,538		74,511
ICICI Bank, Ltd., SADR (a)		736,341		22,473,127
I-Flex Solutions, Ltd. *		38,652		1,366,711
India Cements, Ltd.		453,680		1,253,984
India Glycols, Ltd.		14,305		28,160
India Infoline, Ltd.		155,315		431,984
Indiabulls Financial Services, Ltd. *		304,539		1,305,233
Indiabulls Real Estate, Ltd. *		122,920		692,957
Indian Hotels Company, Ltd.		708,519		952,833
Indian Overseas Bank		261,467		450,996
IndusInd Bank, Ltd.		348,258		731,819
Industrial Development Bank of India, Ltd.		391,102		829,831
Infomedia India, Ltd.		7,700		14,631
Infotech Enterprises, Ltd.		2,000		10,188
Infrastructure Development Finance Company, Ltd.		1,272,514		3,492,953
Ingersoll-Rand India, Ltd.		6,375		42,289
Ipca Laboratories, Ltd.		4,298		60,830
IVRCL Infrastructures & Projects, Ltd.		172,406		1,279,532
Jammu & Kashmir Bank, Ltd. *		22,831		281,458
JB Chemicals & Pharmaceuticals, Ltd.		21,800		23,007
JBF Industries, Ltd.		33,159		65,309
Jet Airways India, Ltd. *		32,379		175,171
Jindal Saw, Ltd.		42,642		480,131
Jindal Stainless, Ltd. *		44,557		73,354
JK Tyre & Industries, Ltd.		14,533		27,033
JSW Steel, Ltd.		125,202		1,759,098
Jubilant Organosys, Ltd.		29,000		140,023
Jyoti Structures, Ltd.		10,126		31,939
Kalpataru Power Transmission, Ltd.		5,788		98,748
Karnataka Bank, Ltd.		155,196		401,046
Karur Vysya Bank, Ltd.		21,841		142,880
Kesoram Industries, Ltd.		31,455		237,495
Kirloskar Oil Engines, Ltd.		57,456		134,556
Kotak Mahindra Bank, Ltd.		207,362		3,043,502
Lakshmi Machine Works, Ltd.		1,969		44,112
LIC Housing Finance, Ltd.		122,389		1,618,892
Madras Cements, Ltd.		90,107		200,917
Maharashtra Seamless, Ltd.		62,316		380,889
Mahindra & Mahindra Financial Services, Ltd.		10,200		44,409
Mahindra & Mahindra, Ltd.		276,840		4,897,747
Mahindra Lifespace Developers, Ltd.		9,110		69,705
Mangalam Cement, Ltd.		14,461		40,565
Mastek, Ltd.		11,271		71,293
MAX India, Ltd. *		130,355		491,867
Mercator Lines, Ltd. *		182,292		219,945
Monnet Ispat & Energy, Ltd.		19,233		131,576
Moser Baer India, Ltd. *		335,661		619,689
MRF, Ltd.		680		59,503
Mukand, Ltd. *		28,732		29,025
Nagarjuna Construction Company, Ltd.		246,877		684,217
Nagarjuna Fertilizers & Chemicals, Ltd. *		229,114		160,935
Nahar Spinning Mills, Ltd.		6,600		6,408
National Organic Chemical Industries, Ltd.		80,241		49,143
Navneet Publications India, Ltd.		46,585		91,464
NIIT Technologies, Ltd.		18,577		48,077
NIIT, Ltd.		35,844		51,160
Nirma, Ltd.		20,100		73,351
OCL India, Ltd.		1,500		4,007

The accompanying notes are an integral part of the financial statements.

114

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
India (continued)
Orchid Chemicals & Pharmaceuticals, Ltd.		56,302	$	138,829
Orient Paper & Industries, Ltd.		51,770		59,087
Oriental Bank of Commerce		124,848		470,471
Panacea Biotec, Ltd.		26,548		103,138
Pantaloon Retail India, Ltd.		800		5,142
Patel Engineering Ltd		15,429		138,503
Patni Computer Systems, Ltd.		70,484		611,822
Petronet LNG, Ltd.		548,610		822,582
Polaris Software Lab, Ltd.		39,735		117,356
Prism Cement, Ltd.		45,201		52,106
PSL, Ltd.		6,900		22,558
PTC India, Ltd. *		311,479		601,309
Punj Lloyd, Ltd.		224,909		1,233,870
Raymond, Ltd. *		33,679		123,257
REI Six Ten Retail, Ltd. *		1,558		25,485
Reliance Capital, Ltd.		122,106		2,166,445
Reliance Communications, Ltd.		907,725		4,833,525
Reliance Industries, Ltd., GDR * (f)		121,038		10,288,230
Reliance Industries, Ltd. *		6,070		248,673
Rolta India, Ltd.		140,629		512,978
Ruchi Soya Industries, Ltd.		153,126		263,697
Seamec, Ltd. *		14,000		53,664
Sicagen India, Ltd. *		4,881		1,515
Sical Logistics, Ltd. *		4,881		5,742
SKF India, Ltd.		4,700		25,759
Sonata Software, Ltd.		23,000		18,260
South Indian Bank, Ltd.		182,894		434,969
SREI Infrastructure Finance, Ltd.		135,957		197,352
SRF, Ltd.		37,385		118,143
Sterlite Optical Technologies, Ltd.		20,008		101,708
Strides Arcolab, Ltd. *		13,608		41,631
Suzlon Energy, Ltd. *		534,875		1,019,613
Syndicate Bank, Ltd.		230,001		373,800
Tanla Solutions, Ltd.		86,834		110,934
Tata Chemicals, Ltd.		121,519		615,364
Tata Investment Corp., Ltd.		6,928		58,328
Tata Metaliks, Ltd. *		7,900		14,543
Tata Motors, Ltd., SADR (a)		64,300		745,237
Tata Motors, Ltd.		270,232		2,719,220
Tata Steel, Ltd.		254,815		2,211,885
Tata Tea, Ltd.		60,799		1,180,064
Teledata Marine Solutions *		23,607		16,560
Teledata Technology Solutions *		23,607		3,094
Torrent Pharmaceuticals, Ltd.		11,441		62,290
Triveni Engineering & Industries, Ltd.		172,863		398,942
Tube Investments of India, Ltd.		59,975		71,554
TVS Motor Company, Ltd. *		63,451		63,103
Unichem Laboratories, Ltd.		6,400		30,918
Union Bank of India, Ltd.		213,838		938,339
United Phosphorus, Ltd.		172,150		602,355
Usha Martin, Ltd.		106,610		117,829
Uttam Galva Steels, Ltd. *		56,948		122,296
Varun Shipping Company, Ltd.		62,246		77,042
Videocon Industries, Ltd.		91,080		464,992
Vimta Labs, Ltd. *		7,251		4,753
Welspun-Gujarat Stahl Rohren, Ltd.		120,815		578,530
Wockhardt, Ltd. *		60,840		200,523
Yes Bank, Ltd. *		213,967		729,029
Zee Entertainment Enterprises, Ltd.		147,094		632,291
Zensar Technologies, Ltd.		12,328		54,464
Zuari Industries, Ltd.		3,500		21,322
				127,280,162
Indonesia - 3.24%
Astra Graphia Tbk PT		606,500		16,535
Bakrie & Brothers Tbk PT *		80,136,261		1,047,954
Bakrieland Development Tbk PT *		49,951,000		1,726,999
Bank Bukopin Tbk PT		447,500		16,857
Bank Pan Indonesia Tbk PT *		7,411,500		538,646
Berlian Laju Tanker Tbk PT		9,878,333		729,761
Bhakti Investama Tbk PT		4,262,825		108,367
Budi Acid Jaya Tbk PT		2,039,000		49,785
Bumi Resources Tbk PT		48,204,930		14,066,663
Central Proteinaprima Tbk PT *		36,480,500		310,827
Charoen Pokphand Indonesia Tbk PT *		2,636,000		362,311
Ciputra Development Tbk PT *		8,719,000		661,386
Ciputra Surya Tbk PT *		971,000		53,888
Davomas Abadi Tbk PT *		8,435,500		61,091
Energi Mega Persada Tbk PT *		15,800,638		602,422
Global Mediacom Tbk PT *		20,303,500		668,150
Gudang Garam Tbk PT		1,594,000		2,259,663
Indah Kiat Pulp and Paper Corp Tbk PT *		6,340,000		1,118,653
Indofood Sukses Makmur Tbk PT		12,150,000		3,011,021
International Nickel Indonesia Tbk PT *		2,914,000		1,233,572
Kawasan Industri Jababeka Tbk PT *		15,626,500		198,086
Lippo Karawaci Tbk PT *		12,000,000		761,656
Matahari Putra Prima Tbk PT *		2,845,500		245,986
Medco Energi Internasional Tbk PT		4,442,000		1,299,906
Mitra Adiperkasa Tbk PT *		866,000		35,200
Panin Insurance Tbk PT *		1,443,000		30,910
Panin Life Tbk PT *		34,462,500		391,701
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		119,500		93,466
Polychem Indonesia Tbk PT *		1,930,000		21,812
Ramayana Lestari Sentosa Tbk PT		305,000		19,323
Samudera Indonesia Tbk PT		74,500		28,073
Summarecon Agung Tbk PT		15,602,000		777,571
Suryainti Permata Tbk PT *		1,802,000		22,579
Timah Tbk PT		1,769,000		368,346
Trias Sentosa Tbk PT		1,000,000		19,832
Trimegah Securities Tbk PT		1,540,500		28,273
Truba Alam Manunggal Engineering PT *		19,436,000		323,434
Tunas Ridean Tbk PT		1,851,500		289,285
				33,599,990
Israel - 2.91%
Africa-Israel Investments, Ltd. *		8,070		94,530
Alvarion, Ltd. *		116,282		441,636
American Israeli Paper Mills, Inc. *		4,745		273,360
AudioCodes, Ltd. *		26,116		49,238
Azorim Investment Development & Construction Company, Ltd. *		15,529		96,888
Bank Hapoalim, Ltd. *		2,321,779		7,456,943
Bank Leumi Le-Israel, Ltd. *		2,508,838		8,579,464

The accompanying notes are an integral part of the financial statements.

115

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Israel (continued)
Baran Group, Ltd. *		3,200	$	17,061
Clal Industries & Investments, Ltd.		152,518		682,898
Clal Insurance Enterprise Holdings, Ltd. *		29,578		615,211
Delta Galil Industries, Ltd. *		8,190		30,187
Discount Investment Corp.		25,268		586,014
Electra, Ltd.		2,170		278,795
Elron Electronic Industries, Ltd. *		23,021		106,611
First International Bank of Israel, Ltd. *		98,744		268,779
First International Bank of Israel, Ltd. *		41,750		566,628
Formula Systems, Ltd., GDR		3,500		30,310
Formula Systems, Ltd.		5,626		47,146
Frutarom Industries, Ltd.		32,526		250,925
Harel Insurance Investments, Ltd. *		17,134		823,268
Ituran Location & Control, Ltd.		2,562		24,166
Koor Industries, Ltd.		11,087		303,817
Leader Holding & Investments, Ltd. *		21,500		13,523
Makhteshim-Agam Industries, Ltd.		670,696		3,072,277
Mivtach Shamir Holdings, Ltd. *		7,505		191,271
Oil Refineries, Ltd.		1,716,777		721,352
Orbotech, Ltd. *		45,156		414,984
Ormat Industries, Ltd.		97,368		778,047
Packer Plada, Ltd.		575		24,220
Radvision, Ltd. *		33,400		295,191
Retalix, Ltd. *		43,124		418,192
Scailex Corp., Ltd. *		16,565		213,830
The Phoenix Holdings, Ltd. *		33,750		84,501
Union Bank of Israel, Ltd. *		25,609		106,530
United Mizrahi Bank, Ltd. *		290,497		2,208,011
Urdan Industries, Ltd. *		59,724		27,991
				30,193,795
Malaysia - 3.88%
Affin Holdings BHD		1,046,800		561,919
Al-’Aqar KPJ REIT		49,082		13,509
AMDB BHD *		180,000		24,578
AMMB Holdings BHD		3,884,450		4,515,465
Ann Joo Resources BHD *		374,700		241,646
Asas Dunia BHD *		94,000		15,482
Asia Pacific Land BHD *		282,100		23,236
Bandar Raya Developments BHD		1,190,700		522,800
Berjaya Corp. BHD		3,188,500		800,385
Berjaya Land BHD *		170,200		181,597
BIMB Holdings BHD		743,200		228,135
Boustead Holdings BHD		484,900		488,023
Cahya Mata Sarawak BHD		235,100		100,207
Dijaya Corp. BHD		16,900		5,449
DNP Holdings BHD		312,800		118,553
DRB-Hicom BHD		1,777,900		569,862
Eastern & Oriental BHD *		740,200		267,648
Eastern Pacific Industrial Corp. BHD		155,700		69,486
ECM Libra Avenue BHD		1,207,400		218,756
Encorp BHD		114,800		28,850
EON Capital BHD		633,500		912,944
Esso Malaysia BHD		89,000		60,180
General Corp. BHD		242,500		68,669
Globetronics Technology BHD		172,980		39,988
Glomac BHD		108,200		31,383
Goldis BHD *		268,500		86,496
Hap Seng Consolidated BHD		601,400		434,858
Hap Seng Plantations Holdings BHD		455,800		286,063
Hong Leong Credit BHD		534,400		783,366
Hong Leong Industries BHD		52,000		53,724
Hume Industries Malaysia BHD		138,900		115,634
Hunza Properties BHD		102,400		42,356
Hwang-DBS Malaysia BHD		69,400		30,811
IGB Corp. BHD		1,989,800		1,020,845
IJM Corp. BHD		1,933,700		3,269,957
Insas BHD *		460,100		58,813
Integrated Logistics BHD		167,200		47,354
Jaks Resources BHD *		413,200		94,930
Jaya Tiasa Holdings BHD		56,700		39,984
K & N Kenanga Holdings BHD *		154,200		29,073
Keck Seng BHD		178,900		194,306
Kian Joo Can Factory BHD		332,000		112,977
Kim Loong Resources BHD		37,800		21,621
Kinsteel BHD		605,400		158,576
KLCC Property Holdings BHD		1,299,200		1,214,520
KPJ Healthcare BHD		213,400		209,306
KSL Holdings BHD		155,066		45,383
KUB Malaysia BHD		592,900		84,664
Kulim Malaysia BHD		411,200		866,401
Kumpulan Hartanah Selangor BHD *		410,900		60,408
Landmarks BHD *		819,100		308,434
LBS Bina Group BHD *		210,000		27,240
Leader Universal Holdings BHD		490,700		102,637
Lion Corp. BHD *		812,793		92,193
Lion Diversified Holdings BHD		863,200		132,725
Lion Industries Corp. BHD		1,085,100		476,784
MAA Holdings BHD *		139,500		30,408
Malaysia Building Society BHD		482,500		131,234
Malaysian Airline System BHD *		108,600		97,192
Malaysian Plantations BHD		1,817,500		1,224,584
Matrix International BHD *		258,500		35,653
MBM Resources BHD		5,000		3,226
Measat Global BHD *		186,100		100,967
Mega First Corp. BHD		193,700		62,827
Melewar Industrial Group BHD		62,200		10,892
MK Land Holdings BHD *		656,100		72,708
MMC Corp. BHD		1,962,100		1,297,509
MNRB Holdings BHD		18,000		16,622
MTD ACPI Engineering BHD		88,100		15,397
Muhibbah Engineering M BHD		859,000		310,446
Mulpha International BHD *		2,033,000		267,709
Naim Cendera Holdings, Ltd. BHD		228,400		175,360
NCB Holdings BHD		4,000		3,318
New Straits Times Press BHD		183,500		92,711
Nylex Malaysia BHD		54,600		11,072
Oriental Holdings BHD		425,600		650,804
OSK Holdings BHD		1,036,500		406,274
OSK Property Holdings BHD		80,236		12,146
OSK Ventures International BHD *		157,045		25,585
Padiberas Nasional BHD		583,700		318,001
Panasonic Manufacturing Malaysia BHD		8,100		28,017

The accompanying notes are an integral part of the financial statements.

116

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Malaysia (continued)
Pelikan International Corp., Berhad		276,800	$	118,982
PJ Development Holdings BHD		297,900		54,263
PPB Group BHD		1,088,600		4,741,134
Protasco BHD		141,500		36,103
Proton Holdings BHD		656,100		564,903
Ranhill BHD		382,200		103,484
RB Land Holdings BHD *		389,800		216,586
RHB Capital BHD		827,700		1,108,297
Sarawak Energy BHD		1,012,000		621,594
Scomi Group BHD		2,062,900		351,276
Selangor Dredging BHD		328,000		52,034
Shangri-La Hotels BHD		24,100		11,910
Shell Refining Company Federation of Malaya BHD		150,600		452,395
SHL Consolidated BHD		185,100		60,447
Southern Steel BHD		96,200		44,826
Sunrise BHD *		495,650		292,515
Sunway City BHD		519,300		497,690
Sunway Holdings, Inc. BHD		370,700		150,253
Supermax Corp BHD		345,800		248,901
Suria Capital Holdings BHD		286,100		96,686
Ta Ann Holdings BHD		246,100		321,068
TA Enterprise BHD		2,443,400		813,390
Talam Corp. BHD *		1,080,000		27,149
Tan Chong Motor Holdings BHD		963,800		534,165
TDM BHD		150,700		68,626
Tebrau Teguh BHD *		548,034		108,984
Time.com BHD *		1,972,700		215,493
Titan Chemicals Corp. *		1,472,700		489,390
Tradewinds Corp. BHD		660,000		121,825
Tradewinds Malaysia BHD		82,400		68,610
Unisem (M) Berhad		688,400		324,573
United Malacca BHD		83,200		199,140
V.S. Industry BHD		166,897		61,963
Wah Seong Corp. BHD		337,000		202,023
WTK Holdings BHD		477,500		154,562
YNH Property BHD *		940,887		502,703
YTL Cement BHD		53,800		63,269
Zelan Berhad		600,800		151,668
				40,264,731
Mexico - 8.25%
Alfa SA de CV		793,000		3,464,931
Alsea SAB de CV *		483,850		298,913
Axtel SAB de CV, ADR *		1,028,937		668,018
Carso Infraestructura y Construccion SA de CV *		483,300		242,116
Cemex SA de CV, SADR * (a)		1,506,953		20,012,336
Coca-Cola Femsa SAB de CV, SADR		40,521		1,806,426
Consorcio ARA SA de CV *		1,364,000		791,583
Corp. GEO SA de CV, Series B *		842,752		1,991,039
Desarrolladora Homex SA de CV *		419,700		2,468,999
Dine SA de CV *		103,700		48,533
Embotelladoras Arca SA de CV		916,541		2,209,293
Empresas ICA SA de CV, SADR * (a)		201,733		1,716,748
Empresas ICA Sociedad Controladora SA de CV *		25,600		54,155
Fomento Economico Mexicano SA de CV,SADR		366,825	$	13,345,094
GMD Resorts SAB de CV *		69,300		22,833
Grupo Aeroportuario del Centro Norte Sab de CV		292,200		420,109
Grupo Aeroportuario del Pacifico SA de CV, Series B, SADR		128,400		3,360,228
Grupo Aeroportuario del Sureste SA de CV, SADR (a)		39,550		1,625,505
Grupo Aeroportuario del Sureste SA de CV		27,200		111,026
Grupo Carso SA de CV		1,218,100		3,872,052
Grupo Cementos de Chihuahua SA de CV		57,000		157,927
Grupo Continential SA de CV		59,862		115,427
Grupo Famsa SAB de CV *		270,434		428,912
Grupo Financiero Banorte SA de CV		2,763,470		8,151,194
Grupo Industrial Maseca SA de CV		2,600		1,497
Grupo Industrial Saltillo SA de CV *		100,600		19,586
Grupo Kuo SA de CV *		164,700		98,665
Grupo Mexicano de Desarrollo, SAB *		69,300		37,363
Grupo Mexico SAB de CV, Series B *		6,997,414		10,060,494
Grupo Simec SAB de CV *		198,600		545,493
Industrias CH SA de CV *		358,600		1,310,689
Organizacion Soriana SA de CV *		1,728,200		4,242,125
Qualitas Compania de Seguros SA de CV		258,200		102,474
Urbi Desarrollos Urbanos SA de CV *		915,100		1,747,388
				85,549,171
Philippines - 0.65%
Ayala Corp.		45,000		281,773
Benpres Holdings Corp. *		4,119,000		310,159
China Banking Corp.		4,140		34,070
DMCI Holdings, Inc.		3,234,000		585,845
Empire East Land Holdings, Inc. *		5,890,000		61,138
Filinvest Development Corp.		404,000		19,026
Filinvest Land, Inc. *		28,408,750		599,860
First Philippine Holdings Corp. *		546,800		467,345
Megaworld Corp.		23,269,000		763,558
Metropolitan Bank & Trust Company		1,329,500		1,058,348
Philippine National Bank *		740,400		377,367
Rizal Commercial Banking Corp.		455,400		160,160
Robinsons Land Corp.		3,333,000		746,722
Security Bank Corp.		155,100		163,235
Union Bank of Philippines		221,200		137,869
Universal Robina Corp.		2,161,100		463,685
Vista Land & Lifescapes, Inc. *		8,538,000		487,559
				6,717,719
Poland - 2.00%
Agora SA *		92,656		758,966
Bank BPH SA *		23,715		584,513
Bank Handlowy w Warszawie SA *		12,257		272,917
Bank Millennium SA *		548,772		963,468
Bioton SA *		3,890,187		409,853
Boryszew SA *		21,709		33,597
Ciech SA *		28,529		423,605
Computerland SA *		28,494		159,317
Debica SA		7,943		161,882
Echo Investment SA *		671,909		1,155,577

The accompanying notes are an integral part of the financial statements.

117

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Poland (continued)
Emperia Holding SA		2,613	$	70,471
Fabryki Mebli Forte SA		23,417		106,299
Firma Chemiczna Dwory SA *		1,964,944		792,316
Getin Holding SA *		609,108		1,903,829
Grupa Kety SA *		23,810		855,079
Grupa Lotos SA *		123,912		1,130,929
Impexmetal SA *		74,550		59,763
Kredyt Bank SA *		59,632		225,957
Mostostal-Export SA *		22,387		22,377
Netia SA *		376,393		527,122
Orbis SA *		61,821		1,083,501
Pekaes SA		6,381		22,546
Pfleiderer Grajewo SA *		6,153		33,935
Pol-Aqua SA *		12,120		112,418
Polnord SA *		15,614		270,646
Polska Grupa Farmaceutyczna SA *		7,974		111,437
Polski Koncern Naftowy Orlen SA *		766,761		7,858,854
Przedsiebiorstwo Eksportu i Importu Kopex SA *		62,001		489,206
Stalexport Autostrady SA *		202,394		119,751
				20,720,131
South Africa - 11.10%
ABSA Group, Ltd.		423,364		6,905,409
Aeci, Ltd.		187,934		1,352,741
Afgri, Ltd.		672,603		484,478
African Bank Investments, Ltd.		874,834		3,248,525
AG Industries, Ltd. *		94,914		3,171
Allied Electronics Corp., Ltd.		93,711		326,472
Argent Industrial, Ltd.		106,615		119,921
Aveng, Ltd.		774,939		4,103,520
Barloworld, Ltd.		411,101		2,516,996
Bell Equipment, Ltd. *		83,308		111,988
Caxton & CTP Publishers & Printers, Ltd.		251,175		374,843
Ceramic Industries, Ltd.		1,781		18,773
DataTec, Ltd. *		323,118		1,003,324
Enaleni Pharmaceuticals, Ltd. *		553,406		295,400
Eqstra Holdings, Ltd. *		91,166		96,224
FirstRand, Ltd.		1,011,210		2,067,059
Freeworld Coatings, Ltd.		26,940		32,833
Gijima Ast Group, Ltd.		338,993		36,167
Gold Fields, Ltd., SADR (a)		1,201,658		14,504,012
Grindrod, Ltd.		745,786		1,640,524
Harmony Gold Mining Company, Ltd., SADR * (a)		576,931		5,423,151
Hulamin, Ltd.		109,348		196,789
Iliad Africa, Ltd.		269,008		268,007
Imperial Holdings, Ltd.		332,645		3,176,468
Investec, Ltd.		414,998		3,117,235
JD Group, Ltd.		360,070		1,968,875
Kap International Holdings, Ltd. *		90,584		20,926
Lewis Group, Ltd.		100,651		677,244
Medi-Clinic Corp., Ltd.		373,937		1,095,390
Merafe Resources, Ltd. *		2,035,010		419,133
Metair Investments, Ltd. *		99,170		55,325
Metorex, Ltd. *		16,745		8,609
Metropolitan Holdings, Ltd.		1,019,364		1,784,220
Mittal Steel South Africa, Ltd.		81,244		1,219,236
Mondi, Ltd.		285,579		1,430,963
Mustek, Ltd.		97,803		28,981
Mvelaphanda Group, Ltd.		555,725		446,125
Nampak, Ltd. *		1,079,367		2,380,503
Nedbank Group, Ltd.		370,590		5,492,410
Northam Platinum, Ltd.		195,797		1,009,547
Nu-World Holdings, Ltd. *		9,429		15,150
Omnia Holdings, Ltd.		92,644		696,896
Palabora Mining Company, Ltd.		7,609		83,048
Peregrine Holdings, Ltd.		219,538		268,289
PSG Group, Ltd.		183,733		490,142
Sanlam, Ltd.		4,143,344		10,936,061
Sappi, Ltd., SADR *		413,417		1,632,997
Sappi, Ltd.		189,700		736,199
Simmer and Jack Mines, Ltd. *		604,228		174,948
Standard Bank Group, Ltd.		1,927,232		24,925,087
Steinhoff International Holdings, Ltd. *		2,185,608		4,891,333
Super Group, Ltd. *		371,170		38,705
Tiger Wheels, Ltd. * (l)		14,267		0
Trans Hex Group, Ltd. *		25,075		11,390
Trencor, Ltd.		225,876		609,858
Value Group, Ltd.		267,946		103,328
				115,074,948
South Korea - 12.33%
Aekyung Petrochemical Company, Ltd.		1,450		19,090
Asia Cement Company, Ltd.		4,430		207,107
Asia Paper Manufacturing Company, Ltd. *		2,000		20,173
Asiana Airlines, Inc. *		120,880		363,720
AUK Corp. *		5,400		8,924
BNG Steel Company, Ltd. *		1,630		11,644
Boryung Pharmaceutical Company, Ltd.		1,188		40,113
Busan Bank		184,360		1,658,800
Byucksan Engineering & Construction Company, Ltd. *		6,140		15,525
Chokwang Leather Company, Ltd. *		2,300		13,387
Chong Kun Dang Pharm Corp.		1,200		19,334
Choongwae Pharma Corp.		2,667		40,330
Chosun Refractories Company, Ltd.		1,160		56,829
CJ CheilJedang Corp.		97		12,962
CJ Corp.		17,996		719,523
Dae Chang Industrial Company, Ltd. *		27,000		17,167
Dae Dong Industrial Company, Ltd.		2,600		51,746
Dae Han Flour Mills Company, Ltd.		1,742		174,283
Dae Won Kang Up Company, Ltd.		18,000		26,777
Daeduck Electronics Company, Ltd.		58,880		259,952
Daeduck GDS Company, Ltd.		5,010		42,280
Daegu Bank		185,600		2,160,490
Daehan Steel Company, Ltd.		9,350		105,849
Daehan Synthetic Fiber Company, Ltd.		130		7,211
Daekyo Company, Ltd.		62,070		287,660
Daelim Industrial Company, Ltd.		39,600		2,283,799
Daesang Corp. *		18,320		113,600
Daesung Industrial Company, Ltd.		1,883		102,904
Daewoo Engineering & Construction Company, Ltd. (a)		122,910		1,369,141
Daewoo Motor Sales Corp. *		53,167		497,436
Daewoong Company, Ltd.		620		11,531

The accompanying notes are an integral part of the financial statements.

118

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Daishin Securities Company, Ltd.		67,580	$	878,442
Daiyang Metal *		4,090		7,352
Daou Technology, Inc.		48,110		326,043
DI Corp. *		8,700		8,737
Digital Power Communications Company, Ltd.		14,000		23,070
Dong Ah Tire & Rubber Company, Ltd.		3,100		19,702
Dong Su Industrial Company, Ltd.		10,880		70,361
Dong Wha Pharmaceutical Industrial Company, Ltd.		20,150		137,890
Dongbang Transport Logistics Company, Ltd.		5,650		11,215
Dongbu Corp.		16,730		129,421
Dongbu Hannong Chemicals Company, Ltd. *		41,060		277,913
Dongbu Securities Company, Ltd. *		28,389		175,286
Dongbu Steel Company, Ltd.		16,470		122,536
Dong-Il Corp.		630		25,265
Dongil Paper Manufacturing Company, Ltd.		13,000		11,290
Dongkuk Steel Mill Company, Ltd.		54,660		1,276,723
Dongwon F & B Company, Ltd.		800		24,971
Dongyang Engineering & Construction Corp.		1,469		22,102
Dongyang Mechatronics Corp.		24,424		84,033
Doosan Industrial Development Company, Ltd.		44,670		241,239
En Paper Manufacturing Company, Ltd. *		3,004		15,599
F&F Company, Ltd.		5,100		14,626
Fursys, Inc.		1,550		31,088
Gaon Cable Company, Ltd.		1,160		28,693
GS Holdings Corp.		72,730		1,920,122
Gwangju Shinsegae Company, Ltd.		220		20,692
H.S. R & A Company, Ltd. *		2,200		16,323
Hae In Corp.		1,846		5,561
Halla Climate Control Company, Ltd.		43,190		412,991
Halla Engineering & Construction Corp.		7,790		191,676
Hana Financial Group, Inc.		194,920		5,105,279
Handok Pharmaceuticals Company, Ltd.		1,000		16,278
Handsome Company, Ltd.		16,628		151,708
Hanil Cement Manufacturing Company, Ltd.		8,549		523,086
Hanil Construction Company, Ltd.		1,470		7,645
Hanil E-Wha Company, Ltd.		6,400		19,509
Hanjin Heavy Industries & Construction Company, Ltd.		26,430		583,531
Hanjin Heavy Industries & Construction Holdings Company, Ltd.		15,080		176,747
Hanjin Shipping Company, Ltd.		84,630		1,469,214
Hanjin Transportation Company, Ltd.		12,470		401,655
Hankook Cosmetics Company, Ltd.		6,300		14,902
Hankuk Electric Glass Company, Ltd.		3,370		65,622
Hankuk Glass Industries, Inc.		1,820		32,998
Hankuk Paper Manufacturing Company, Ltd.		3,690		136,973
Hanmi Capital Company, Ltd.		3,100		24,824
Hanshin Construction Company, Ltd.		3,010		45,786
Hansol Chemical Company, Ltd.		3,500		30,654
Hansol CSN Company, Ltd.		23,450		30,202
Hansol Paper Company, Inc. *		48,030		461,169
Hanssem Company, Ltd.		6,330		41,852
Hanwha Chemical Corp.		113,670		1,181,872
Hanwha Securities Company, Ltd.		57,600		476,762
Hanwha Timeworld Company, Ltd.		1,700		17,489
Hanyang Securities Company, Ltd.		12,220		115,326
Heung-A Shipping Company, Ltd.		51,105		32,509
Hite Holdings Company, Ltd.		8,280		265,007
Honam Petrochemical Corp.		20,627		1,547,821
Hotel Shilla Company, Ltd.		22,640		271,747
Husteel Company, Ltd.		5,310		77,335
Hwa Shin Company, Ltd.		14,690		37,540
Hwa Sung Industrial Company, Ltd.		3,530		17,678
Hwacheon Machine Tool Company, Ltd.		730		19,395
Hyosung Corp.		16,050		1,159,585
Hyundai Cement Company, Ltd. *		2,370		34,702
Hyundai DSF Company, Ltd.		2,800		19,046
Hyundai Elevator Company, Ltd.		3,641		179,052
Hyundai H & S Company, Ltd.		5,183		286,907
Hyundai Hysco Company, Ltd.		41,680		570,104
Hyundai Merchant Marine Company, Ltd.		21,550		462,334
Hyundai Mipo Dockyard Company, Ltd.		17,062		1,686,206
Hyundai Motor Company, Ltd.		197,506		16,749,950
Hyundai Pharmaceutical Industrial Company, Ltd.		9,400		22,769
Hyundai Securities Company, Ltd.		194,107		2,592,465
Hyundai Steel Company		78,472		4,978,244
Il Dong Pharmaceutical Company, Ltd.		4,520		111,190
Iljin Diamond Company, Ltd.		712		7,364
Iljin Electric, Ltd. *		15,328		41,823
Ilsung Pharmaceutical Company, Ltd.		1,470		77,818
Inzi Controls Company, Ltd.		6,490		19,091
Isu Chemical Company, Ltd.		7,260		98,443
Jahwa Electronics Company, Ltd.		13,850		97,520
Jeil Mutual Savings Bank		1,850		9,616
Jeil Pharmaceutical Company		1,910		16,289
Jeonbuk Bank, Ltd.		59,800		298,056
Joongang Construction Company, Ltd. *		2,700		13,825
KB Financial Group, Inc., ADR * (a)		258,174		10,525,754
KC Tech Company, Ltd.		13,863		51,464
KCC Corp.		6,948		1,768,187
KCTC		1,100		12,283
Keangnam Enterprises, Ltd. *		11,908		160,989
Keyang Electric Machinery Company, Ltd.		18,120		39,445
KG Chemical Corp.		5,600		44,190
Kia Motors Corp. *		269,640		3,644,708
KISCO Corp.		4,286		161,928
Kiswire, Ltd.		6,149		203,296
Kolon Engineering & Construction Company, Ltd.		27,010		159,482
Kolon Industries, Inc.		14,120		468,883
Korea Airport Service Company, Ltd.		1,020		27,814
Korea Cast Iron Pipe Industries Company, Ltd.		6,600		21,445
Korea Circuit Company, Ltd. *		5,500		13,853
Korea Development Corp. *		2,330		11,522
Korea Development Financing Corp.		1,960		48,519
Korea Electric Terminal Company, Ltd.		7,230		105,899
Korea Exchange Bank		344,640		3,059,721
Korea Express Company, Ltd. *		1,779		99,533
Korea Flange Company, Ltd. *		1,830		19,918
Korea Green Paper Manufacturing Company, Ltd. *		3,607		5,797
Korea Investment Holdings Company, Ltd.		58,647		1,679,553

The accompanying notes are an integral part of the financial statements.

119

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Korea Iron & Steel Company, Ltd.		783	$	48,507
Korea Kumho Petrochemical Company, Ltd.		15,040		373,072
Korea Line Corp.		10,777		456,886
Korea Mutual Savings Bank *		870		11,135
Korea Polyol Company, Ltd.		1,522		55,915
Korean Air Lines Company, Ltd. *		51,180		1,711,857
Korean Petrochemical Industrial Company, Ltd. *		2,450		91,635
KP Chemical Corp. *		43,550		274,865
KTB Network Corp. *		70,470		286,928
Kukdo Chemical Company, Ltd.		4,840		113,104
Kumho Electric Company, Ltd.		6,750		307,307
Kumho Industrial Company, Ltd.		36,950		385,707
Kumho Investment Bank		60,370		53,847
Kumho Tire Company, Inc. *		53,240		250,942
Kumkang Industrial Company, Ltd.		1,400		12,605
Kwang Dong Pharmaceutical Company, Ltd.		54,350		145,488
Kyeryong Construction Industrial Company, Ltd.		8,060		139,933
Kyung Nong Corp.		11,060		40,019
Kyungbang, Ltd. *		681		76,873
Lee Ku Industrial Company, Ltd.		8,740		9,614
LG Dacom Corp.		41,250		607,479
LG Display Company, Ltd., ADR (a)		151,850		2,198,788
LG Telecom, Ltd.		76,960		479,781
Lotte Chilsung Beverage Company, Ltd.		1,027		624,461
Lotte Confectionery Company, Ltd.		1,049		871,113
Lotte Samkang Company, Ltd.		902		134,301
Lotte Shopping Company, Ltd.		13,543		3,083,223
Manho Rope & Wire, Ltd.		1,400		20,614
Meritz Investment Bank *		63,031		44,161
Meritz Securities Company, Ltd.		259,560		261,637
Moorim Paper Company, Ltd.		4,880		42,382
Namyang Dairy Products Company, Ltd.		646		263,181
Nong Shim Holdings Company, Ltd.		1,340		69,660
On*Media Corp. *		92,630		260,868
Pacific Corp.		4,328		500,402
Pang Rim Company, Ltd.		950		11,256
PaperCorea, Inc. *		2,900		18,718
Pohang Coated Steel Company, Ltd.		1,600		36,218
Poonglim Industrial Company, Ltd. *		5,520		13,302
Poongsan Corp. *		1,300		19,974
Poongsan Corp. *		6,919		108,991
Pulmuone Company, Ltd.		1,122		52,917
Pumyang Construction Company, Ltd.		1,610		11,570
Pusan City Gas Company, Ltd.		7,810		137,231
S&T Corp.		2,360		25,679
S&T Dynamics Company, Ltd.		10,410		132,024
Saehan Media Company, Ltd. *		6,266		12,684
Sam Kwang Glass Industrial Company, Ltd.		800		25,330
Sam Lip General Foods Company, Ltd.		3,850		33,131
Sam Young Electronics Company, Ltd.		13,690		131,358
Sam Yung Trading Company, Ltd.		4,500		17,465
Sambu Construction Company, Ltd.		4,918		92,069
Samho International Company, Ltd. *		6,780		26,040
Samick Musical Instruments Company, Ltd. *		8,830		7,326
Samick THK Company, Ltd.		11,120		19,585
Samsung SDI Company, Ltd.		48,621		5,752,140
Samwhan Corp.		3,850		35,257
Samyang Corp.		7,861		254,214
Samyang Genex Company, Ltd.		1,932		100,471
Samyang Tongsang Company, Ltd.		690		13,409
Savezone I & C Corp. *		16,880		22,223
Seah Besteel Corp.		15,200		201,921
SeAH Holdings Corp.		1,133		57,882
SeAH Steel Corp.		2,632		83,208
Sebang Company, Ltd.		10,890		130,213
Sejong Industrial Company, Ltd.		7,830		37,592
Seoul Securities Company, Ltd. *		642,760		575,948
Sgwicus Corp. *		4,800		8,069
SH Chemical Company, Ltd. *		31,743		15,109
Shin Poong Pharmaceutical Company, Ltd.		1,880		39,122
Shinhan Engineering & Construction Company, Ltd.		3,177		32,919
Shinhan Financial Group Company, Ltd., SADR * (a)		157,639		10,296,979
Shinhan Financial Group Company, Ltd. *		65,000		2,131,381
Shinsegae Engineering & Construction Company, Ltd.		1,110		12,566
Shinsung ENG Company, Ltd.		3,222		7,141
Shinsung FA Company, Ltd.		3,222		6,818
Shinyoung Securities Company, Ltd.		7,210		231,365
Silla Company, Ltd.		11,550		144,220
Sindo Ricoh Company, Ltd.		5,604		260,294
SJM Company, Ltd.		8,130		30,910
SK Corp.		39,835		3,347,218
SK Gas Company, Ltd.		2,662		115,246
SKC Company, Ltd.		28,030		433,957
SL Corp.		5,830		26,313
Solomon Mutual Savings Bank *		3,600		15,549
Ssangyong Cement Industrial Company, Ltd. *		21,560		149,774
STX Pan Ocean Company, Ltd.		104,770		930,052
STX Shipbuilding Company, Ltd.		15,540		184,600
Suheung Capsule Company, Ltd.		2,900		20,425
Sung Bo Chemicals Company, Ltd.		410		10,415
Sungjee Construction Company, Ltd.		2,210		11,281
Sungshin Cement Company, Ltd. *		5,760		39,866
Sungwon Corp. *		4,230		17,128
Sunjin Company, Ltd. *		1,010		25,428
Tae Kyung Industrial Company, Ltd.		14,930		54,710
Taegu Department Store Company, Ltd.		2,740		25,761
Taekwang Industrial Company, Ltd.		613		379,262
Taeyoung Engineering & Construction, Ltd.		62,140		308,770
Taihan Electric Wire Company, Ltd.		34,660		633,467
Telcoware Company, Ltd.		4,000		23,346
Trybrands, Inc. *		5,723		16,668
Trybrands, Inc. *		3,036		8,050
TS Corp.		2,406		94,936
Uangel Corp.		7,990		47,858
Unid Company, Ltd.		2,000		57,941
Union Steel Company, Ltd.		5,560		113,472
Wiscom Company, Ltd.		3,680		11,601
Woongjin Holdings Company, Ltd. *		39,680		361,990
Woori Investment & Securities Company, Ltd.		122,940		1,720,755

The accompanying notes are an integral part of the financial statements.

120

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Yesco Company, Ltd.		1,480	$	31,520
Yoosung Enterprise Company, Ltd.		9,880		22,221
Youlchon Chemical Company, Ltd.		18,290		118,740
Youngone Corp.		4,706		83,783
Youngone Corp. *		18,824		117,264
Yuhwa Securities Company, Ltd.		3,240		38,932
				127,837,774
Taiwan - 11.22%
Accton Technology Corp.		834,000		265,293
Achem Technology Corp.		282,000		94,136
AGV Products Corp. *		753,505		278,219
Allis Electric Company, Ltd. *		135,000		26,653
AmTRAN Technology Company, Ltd.		1,178,674		869,277
Arima Communication Corp. *		202,000		65,318
Arima Optoelectronics Corp. *		100,134		35,929
Asia Polymer Corp.		337,000		233,752
Asia Vital Components Company, Ltd.		395,800		361,975
Asustek Computer, Inc.		1,778,516		2,821,022
AU Optronics Corp., ADR (a)		1,215,247		11,982,331
Audix Corp.		81,200		42,532
Aurora Systems Corp.		63,000		31,716
Avision, Inc.		111,916		33,436
Bank of Kaohsiung, Ltd. *		495,680		140,368
Behavior Technology Computer Corp. *		48,800		1,854
BenQ Corp. *		2,449,512		1,127,419
BES Engineering Corp.		2,538,200		701,305
C Sun Manufacturing, Ltd.		50,729		17,312
Carnival Industrial Corp. *		198,000		36,764
Cathay Chemical Works, Inc.		73,000		22,038
Cathay Real Estate Development Company, Ltd. *		1,529,000		560,028
Central Reinsurance Company, Ltd. *		269,535		90,921
Chain Qui Development Company, Ltd.		76,000		58,844
Champion Building Materials Company, Ltd.		378,950		109,507
Chang Hwa Commercial Bank, Ltd.		3,732,000		1,553,741
Cheng Loong Corp. *		1,606,000		529,059
Chenming Mold Industrial Corp.		92,128		24,624
Chi Mei Optoelectronics Corp. *		5,448,950		2,655,693
Chia Hsin Cement Corp. *		797,560		365,881
Chien Shing Stainless Steel Company, Ltd. *		181,000		29,810
Chilisin Electronics Corp.		63,240		21,919
China Airlines, Ltd. *		2,853,874		962,684
China Development Financial Holdings Corp. *		14,866,216		3,416,735
China Electric Manufacturing Corp.		456,000		217,435
China General Plastics Corp. *		588,000		193,201
China Glaze Company, Ltd. *		109,203		48,465
China Manmade Fibers Corp.		2,062,000		364,842
China Metal Products Company, Ltd.		350,000		371,737
China Motor Company, Ltd. *		1,144,905		629,178
China Petrochemical Development Corp. *		3,005,780		865,885
China Steel Structure Company, Ltd.		107,000		78,770
China Synthetic Rubber Corp.		15,000		14,094
China Wire & Cable Company, Ltd. *		120,000		30,106
Chinatrust Finance Holding Company, Ltd.		80,000		44,309
Ching Feng Home Fashions Company, Ltd.		108,780		21,492
Chin-Poon Industrial Company, Ltd.		466,466		283,489
Chun Yu Works & Company, Ltd.		115,000		29,400
Chun Yuan Steel Industrial Company, Ltd.		652,980		209,163
Chung Hwa Pulp Corp. *		622,000		226,390
Chunghwa Picture Tubes, Ltd. *		12,554,000		1,391,312
CMC Magnetics Corp. *		4,140,000		897,348
Collins Company, Ltd. *		155,400		39,840
Compal Electronics, Inc.		1,484,385		1,492,323
Compeq Manufactuing Company, Ltd. *		1,614,000		407,199
Continental Engineering Corp.		875,000		348,377
Delpha Construction Company, Ltd. *		174,000		40,461
D-Link Corp.		419,770		322,383
E.Sun Financial Holding Company, Ltd. *		5,578,191		1,723,913
Eastern Media International Corp. *		1,061,053		201,575
Eclat Textile Company, Ltd.		126,072		63,135
Edom Technology Company, Ltd. *		64,000		19,722
Elite Material Company, Ltd.		203,684		139,640
Elitegroup Computer Systems Company, Ltd.		1,024,576		395,134
Enlight Corp. *		164,799		4,517
Eternal Chemical Company, Ltd.		269,973		233,455
EVA Airways Corp. *		3,388,000		777,631
Everest Textile Company, Ltd. *		224,000		38,877
Evergreen Marine Corp. *		1,785,000		1,075,942
Everlight Chemical Industrial Corp.		597,000		315,480
Everspring Industry Company, Ltd. *		61,000		10,653
Evertop Wire Cable Corp. *		98,275		16,757
Excel Cell Electronic Company, Ltd.		29,000		9,198
Far Eastern International Bank *		2,731,000		703,104
Federal Corp. *		609,527		285,263
First Copper Technology Company, Ltd. *		169,000		47,155
First Financial Holding Company, Ltd.		2,448,375		1,323,657
First Insurance Company, Ltd. *		150,165		45,107
Formosa Taffeta Company, Ltd.		1,516,000		951,701
Formosan Rubber Group, Inc.		767,000		424,786
Formosan Union Chemical		177,595		68,646
FSP Technology, Inc.		352,600		305,083
FU I Industrial Company, Ltd. *		159,000		37,913
Fwusow Industry Company, Ltd. *		103,000		34,428
Gigabyte Technology Company, Ltd.		827,000		644,949
Gigastorage Corp. *		146,000		35,337
Gold Circuit Electronics, Ltd. *		771,040		300,621
Goldsun Development & Construction Company, Ltd.		1,925,047		929,005
Gordon Auto Body Parts Company, Ltd. *		50,181		12,321
Grand Pacific Petrochemical Corp. *		1,153,000		456,525
Great China Metal Industry Company, Ltd.		303,000		176,403
GTM Corp. *		95,000		54,888
HannStar Display Corp. *		242,000		50,540
Hey Song Corp.		572,000		291,200
Hitron Technology, Inc.		70,432		32,081
Ho Tung Chemical Corp. *		701,000		270,504
Hocheng Group Corp. *		177,000		42,817
Hold-Key Electric Wire & Cable Company, Ltd. *		132,000		75,139
Hong TAI Electric Industrial Company, Ltd.		328,000		107,242
Hsin Kuang Steel Company, Ltd.		420,153		316,976
Hsing TA Cement Company, Ltd.		227,000		69,585
Hua Eng Wire & Cable Company, Ltd. *		1,053,000		281,556

The accompanying notes are an integral part of the financial statements.

121

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Hua Nan Financial Holdings Company, Ltd.		316,000	$	171,288
Hung Ching Development Company, Ltd.		147,000		71,687
Hung Sheng Construction Company, Ltd.		821,000		311,896
Hwa Fong Rubber Company, Ltd. *		584,770		196,507
Ichia Technologies, Inc. *		512,300		228,110
InnoLux Display Corp.		2,229,950		2,488,257
International Semiconductor Technology, Ltd. *		171,000		53,970
Inventec Company, Ltd.		3,180,155		1,753,674
Johnson Health Tech Company, Ltd. *		86,000		77,096
Jui Li Enterprise Company, Ltd.		66,950		16,751
K Laser Technology, Inc.		82,214		32,243
Kang Na Hsiung Enterprise Company, Ltd.		136,350		103,738
Kaulin Manufacturing Company, Ltd.		164,490		71,612
KEE TAI Properties Company, Ltd.		578,037		238,653
Kindom Construction Company, Ltd.		561,000		270,013
King Yuan Electronics Company, Ltd.		1,864,706		662,012
King’s Town Bank *		847,000		185,963
Kinpo Electronics, Inc. *		2,071,724		532,993
Kwong Fong Industries Corp. *		933,000		177,430
Lan Fa Textile Company, Ltd. *		169,781		45,306
Lead Data, Inc. *		205,000		21,037
Lealea Enterprise Company, Ltd. *		1,142,500		205,982
LEE CHI Enterprises Company, Ltd.		110,000		36,063
Lelon Electronics Corp.		92,000		30,131
Li Peng Enterprise Company, Ltd. *		292,864		88,944
Lien Hwa Industrial Corp.		927,954		391,839
Lingsen Precision Industries, Ltd. *		146,178		46,393
Lite-On Technology Corp.		2,148,639		2,396,416
Long Chen Paper Company, Ltd. *		277,060		79,249
Lucky Cement Corp.		190,000		49,307
Macronix International Company, Ltd.		2,379,879		1,127,438
Mayer Steel Pipe Corp. *		63,781		33,470
Mega Financial Holding Company, Ltd.		13,548,000		6,725,792
Meiloon Industrial Company, Ltd.		112,231		32,694
Micro-Star International Company, Ltd.		1,345,488		835,502
Mitac International		2,182,916		886,344
Mitac Technology Corp.		601,000		531,681
Mobiletron Electronics Company, Ltd. *		31,000		16,474
Mustek Systems, Inc. *		103,576		5,067
Namchow Chemical Industrial Company, Ltd. *		100,000		33,516
Nien Hsing Textile Company, Ltd.		658,000		317,923
Optimax Technology Corp. *		319,000		11,330
Oriental Union Chemical Corp.		183,000		103,821
Pacific Construction Company, Ltd. *		267,000		26,864
Pan Jit International, Inc.		418,806		223,082
Phihong Technology Company, Ltd.		666,573		418,446
Phoenix Precision Technology Corp. *		983,847		602,997
Pou Chen Corp.		911,400		562,855
Prodisc Technology, Inc. *		540,000		9,511
Quintain Steel Company, Ltd. *		169,000		33,909
Ralec Electronic Corp.		39,292		41,207
Rexon Industrial Corp., Ltd. *		153,000		37,450
Ritek Corp. *		4,218,000		1,008,810
Sampo Corp. *		1,763,000		264,946
Sanyang Industrial Company, Ltd. *		1,060,481		402,735
SDI Corp.		137,000		91,732
Sheng Yu Steel Company, Ltd.		151,000		106,127
Shinkong Insurance Company, Ltd. *		151,788		51,774
Shinkong Synthetic Fibers Corp.		2,445,000		577,768
Sigurd Microelectronics Corp.		151,326		73,460
Sinon Corp.		520,150		194,627
SinoPac Holdings Company, Ltd. *		11,016,000		3,287,192
Siward Crystal Technology Company, Ltd.		65,301		22,402
Solomon Technology Corp. *		81,036		28,564
Southeast Cement Company, Ltd. *		390,000		130,907
Spirox Corp.		62,369		30,256
Springsoft, Inc.		348,000		234,951
Stark Technology, Inc.		57,000		30,235
Sunplus Technology Company, Ltd.		760,595		411,290
Ta Chen Stainless Pipe Company, Ltd. *		720,000		497,275
Ta Chong Bank, Ltd. *		2,375,000		359,772
Ta Ya Electric Wire & Cable Company, Ltd.		905,571		179,198
Tah Hsin Industrial Company, Ltd.		105,000		65,663
TA-I Technology Company, Ltd.		181,941		110,862
Taichung Commercial Bank		1,673,072		389,181
Tainan Enterprises Company, Ltd.		121,800		82,426
Tainan Spinning Company, Ltd. *		1,984,000		610,091
Taishin Financial Holdings Company, Ltd. *		5,420,000		1,784,905
Taisun Enterprise Company, Ltd. *		220,000		73,803
Taita Chemical Company, Ltd. *		95,790		31,045
Taiwan Business Bank *		3,765,000		878,191
Taiwan Cooperative Bank		4,525,275		2,489,369
Taiwan Fu Hsing Industrial Company, Ltd.		83,000		41,299
Taiwan Glass Industrial Corp.		690,111		428,773
Taiwan Kai Yih Industrial Company, Ltd.		125,209		66,374
Taiwan Kolin Company, Ltd. * (l)		400,000		0
Taiwan Mask Corp.		321,000		106,989
Taiwan Paiho, Ltd. *		449,900		232,788
Taiwan Pulp & Paper Corp. *		385,000		109,286
Taiwan Sakura Corp.		89,615		33,111
Taiwan Styrene Monomer Corp.		1,000,479		382,258
Taiyen Biotech Company, Ltd.		395,000		233,100
Tatung Company, Ltd. *		6,643,000		1,409,117
Teapo Electronic Corp. *		205,000		27,298
Teco Electric & Machinery Company, Ltd.		3,283,000		1,346,110
Tex-Ray Industrial Company, Ltd. *		90,000		19,471
Thinking Electronic Industrial Company, Ltd.		59,000		57,196
Ton Yi Industrial Corp.		1,073,000		370,851
Tsann Kuen Enterprise Company, Ltd.		411,000		414,138
Twinhead International Corp. *		224,000		19,719
TYC Brother Industrial Company, Ltd.		256,887		156,578
Tycoons Group Enterprise Company, Ltd. *		915,000		150,918
Tze Shin International Company, Ltd.		96,830		38,622
Unimicron Technology Corp.		7,000		7,337
Union Bank of Taiwan *		1,009,000		181,867
Unitech Electronics Company, Ltd. *		101,299		50,129
Unitech Printed Circuit Board Corp. *		617,950		187,328
United Integrated Services Company, Ltd.		98,000		43,876
United Microelectronics Corp. *		19,639,406		8,018,880
Universal Cement Corp. *		929,808		429,559
Universal Scientific Industrial Company, Ltd.		1,491,100		557,411
UPC Technology Corp.		1,032,600		436,671

The accompanying notes are an integral part of the financial statements.

122

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
USI Corp. *		968,000	$	428,127
U-Tech Media Corp. *		180,000		64,470
Ve Wong Corp. *		84,000		65,466
Walsin Lihwa Corp. *		4,672,000		1,533,282
Walsin Technology Corp.		825,262		314,853
Wan Hai Lines, Ltd. *		555,000		274,720
Waterland Financial Holding Company		2,789,800		849,583
Wei Chih Steel Industrial Company, Ltd. *		110,000		23,232
Winbond Electronics Corp. *		5,206,000		870,734
Wintek Corp. *		1,838,000		1,341,230
WUS Printed Circuit Company, Ltd. *		254,000		68,425
Yageo Corp.		3,783,000		956,100
Yang Ming Marine Transport Corp.		2,239,015		829,848
Yi Jinn Industrial Company, Ltd. *		219,800		30,936
Yieh Phui Enterprise Company, Ltd. *		1,717,617		658,314
Yosun Industrial Corp.		473,752		335,757
Yuen Foong Yu Paper Manufacturing Company, Ltd. *		1,736,711		530,485
Yulon Motor Company, Ltd.		1,524,900		1,328,594
Yung Chi Paint & Varnish Manufacturing Company, Ltd.		68,850		81,104
Yungtay Engineering Company, Ltd.		686,000		434,519
Zig Sheng Industrial Company, Ltd.		270,179		68,684
Zippy Technology Corp.		69,300		30,089
Zyxel Communications Corp.		36,000		20,589
				116,383,140
Thailand - 1.88%
Bangchak Petroleum PCL		305,300		128,368
Bangkok Bank PCL, Foreign Shares		531,900		1,741,009
Bangkok Bank PCL, NVDR		840,100		2,737,841
Bangkok Expressway PCL		411,300		222,520
Bangkok Insurance PCL		2,500		16,980
Bangkok Land PCL *		11,336,200		166,660
Bank of Ayudhya PCL, Foreign Shares		6,978,800		3,679,138
Cal-Comp Electronics Thailand PCL		1,904,300		191,494
Charoen Pokphand Foods PCL		4,015,300		708,374
Delta Electronics Thailand PCL		382,600		196,869
Eastern Water Resources Development & Management PCL		140,000		15,725
Hana Microelectronics PCL		430,000		250,338
Hemaraj Land & Development PCL		5,223,400		138,226
Jasmine International PCL		641,000		9,424
KGI Securities Thailand PCL		1,922,600		70,663
Kiatnakin Finance PCL		282,500		156,160
Krung Thai Bank PCL		5,336,300		1,349,373
Krungthai Card PCL		126,000		44,087
Loxley PCL *		988,200		81,357
MBK PCL		57,800		100,695
Nakornthai Strip Mill PCL *		24,328,200		135,912
National Finance PCL		921,100		398,123
Padaeng Industry PCL		20,000		8,174
Polyplex PCL		190,000		31,564
Power Line Engineering PCL *		246,200		10,786
Pranda Jewelry PCL		214,300		27,347
Precious Shipping PCL		565,400		275,967
PTT Aromatics & Refining PCL		1,422,500		907,623
PTT Chemical PCL		713,700		1,385,010
Quality House PCL		5,703,500		348,817
Regional Container Lines PCL *		401,800		129,956
Saha-Union PCL		134,800		68,966
Sahaviriya Steel Industries PCL *		6,536,000		174,883
Sansiri PCL		1,102,100		132,213
SC Asset Corp. PCL		168,200		47,478
Seamico Securities PCL		421,400		28,994
Shin Satellite PCL *		544,900		120,163
Siam City Bank PCL		1,111,350		705,827
Sino Thai Engineering & Construction PCL *		512,900		70,880
Supalai PCL		985,400		136,756
Tata Steel Thailand PCL *		4,711,900		245,224
Thai Oil PCL		972,100		1,157,602
Thai Plastic & Chemical PCL		292,800		154,966
Thoresen Thai Agencies PCL		337,270		229,078
Tipco Asphalt PCL *		103,300		57,102
TMB Bank PCL *		7,318,998		228,113
TPI Polene PCL *		921,000		209,872
Vanachai Group PCL		672,000		39,518
Vinythai PCL		100,000		17,936
				19,490,151
Turkey - 2.64%
Adana Cimento Sanayii		140,546		53,444
Akcansa Cimento AS		113,818		402,885
Aksa Akrilik Kimya Sanayii AS *		121,454		117,571
Aksigorta AS		290,218		989,390
Alarko Holding AS		207,987		492,364
Anadolu Cam Sanayii AS *		205,846		236,360
Anadolu Isuzu Otomotiv Sanayi AS *		7,282		26,737
Anadolu Sigorta AS		467,498		393,910
Arcelik AS *		277,400		797,010
Ayen Enerji AS		20,072		30,962
Aygaz AS		201,651		571,288
BatiSoke AS *		24,824		17,894
Bolu Cimento Sanayii AS		83,405		82,417
Borusan Mannesmann Boru Sanayi AS *		13,810		110,636
Brisa Bridgestone Sabanci Lastik San ve Tic AS		831		24,541
Cemtas Celik Makina Sanayi ve Ticaret AS		81,516		42,440
Cimsa Cimento Sanayi ve Ticaret AS		125,463		460,180
Dogan Gazetecilik AS *		26,131		39,969
Dogan Sirketler Grubu Holdings AS *		1,991,109		1,878,975
Dogan Yayin Holding AS *		506,307		555,723
Dogus Otomotiv Servis ve Ticaret AS *		105,253		316,372
Eczacibasi Ilac Sanayi AS		368,380		371,510
EGE Seramik Sanayi ve Ticaret AS *		26,340		16,358
Eregli Demir ve Celik Fabrikalari *		748,943		2,979,857
Ford Otomotiv Sanayi AS		28,857		171,625
Gentas Genel Metal Sanayi ve Ticaret AS *		46,226		33,037
Global Yatirim Holding AS *		508,853		299,330
Goldas Kuyumculuk Sanayi AS *		54,847		49,079
Goodyear Lastikleri		17,513		117,461
GSD Holding AS *		559,767		280,672
Gunes Sigorta AS *		31,526		40,022
Hurriyet Gazetecilik AS *		513,859		539,653

The accompanying notes are an integral part of the financial statements.

123

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Turkey (continued)
Ihlas Holding AS *		798,884	$	288,204
Izmir Demir Celik Sanayi AS *		107,008		174,802
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS *		418,488		228,830
Kartonsan Karton Sanayi ve Ticaret AS		638		30,253
KOC Holdings AS *		1,088,421		2,895,970
Konya Cimento Sanayii AS		977		33,234
Kordsa Global Endustriyel Iplik ve Kord Bezi Sanayi ve Ticaret Anonim Sirketi AS *		316,320		477,175
Marmaris Marti Otel Isletmeleri AS *		71,538		35,362
Menderes Tekstil Sanayi ve Ticaret AS *		126,374		33,784
Mutlu Aku ve Malzemeleri Sanayi AS *		28,331		32,545
Net Turizm Ticaret ve Sanayi AS *		98,336		48,647
Nortel Networks Netas Telekomunikasyon AS		14,863		401,932
Parsan Makina Parcalari Sanayii AS *		28,857		23,708
Petkim Petrokimya Holding AS *		195,073		932,403
Pinar Entegre Et ve Un Sanayi AS		36,324		89,287
Pinar Sut Mamulleri Sanayii AS		28,498		122,848
Sanko Pazarlama Ithalat Ihracat AS *		20,076		37,259
Sarkuysan Elektrolitik Bakir AS *		91,563		148,525
Sekerbank *		316,617		517,331
Selcuk Ecza Deposu Ticaret ve Sanayi A.S.		175,810		375,651
Tekfen Holding AS *		92,888		255,712
Tekstil Bankasi AS *		140,973		86,745
Tofas Turk Otomobil Fabrik AS		35,538		89,306
Trakya Cam Sanayi AS *		526,396		594,358
Turcas Petrolculuk AS		93,599		267,611
Turk Ekonomi Bankasi AS *		521,636		638,746
Turk Sise ve Cam Fabrikalari AS *		789,276		838,774
Turkiye Sinai Kalkinma Bankasi AS *		673,275		563,218
Turkiye Vakiflar Bankasi Tao *		1,727,269		3,837,633
Ulker Gida Sanayi ve Ticaret AS		153,696		357,268
Usas Ucak Servisi AS		18,304		19,057
Vestel Elektronik Sanayi ve Tracaret AS *		239,841		370,129
				27,385,979
United States - 0.89%
Blue Square-Israel, Ltd., ADR		3,800		35,264
Patni Computer Systems, Ltd., SADR		28,382		487,319
Sterlite Industries India, Ltd. *		518,042		6,936,582
Yanzhou Coal Mining Company, Ltd.		123,791		1,734,312
				9,193,477
TOTAL COMMON STOCKS (Cost $854,197,890)			$	1,001,180,278
PREFERRED STOCKS - 3.16%
Brazil - 3.16%
Banco ABC Brasil SA (k)		101,700		508,311
Banco Daycoval SA (k)		98,900		411,930
Banco do Estado do Rio Grande do Sul (k)		84,300		466,967
Banco Industrial e Comercial SA (k)		171,700		882,779
Banco Panamericano SA (k)		166,300		586,775
Banco Pine SA (k)		60,100		345,670
Banco Sofisa SA (k)		83,200		229,112
Bardella SA Industrias Mecanicas (k)		916		62,186
Companhia de Tecidos Norte de Minas SA (k)		170,600		457,118
Confab Industrial SA (k)		432,867		1,185,119
Duratex SA (k)		182,600	$	2,787,394
Forjas Taurus SA (k)		12,540		49,569
Klabin SA (k)		878,800		1,701,926
Marcopolo SA (k)		314,000		939,651
Metalurgica Gerdau SA (k)		336,600		4,932,823
Sao Paulo Alpargatas SA (k)		14,700		623,972
Saraiva SA Livreiros Editores (k)		5,200		77,392
Telemar Norte Leste SA, Series A (k)		62,700		1,719,950
Uniao de Industrias Petroquimicas SA, Series B (k)		1,223,810		714,273
Universo Online SA (k)		87,100		362,782
Usinas Siderurgicas de Minas Gerais SA, Series A (k)		582,350		13,688,176
				32,733,875
TOTAL PREFERRED STOCKS (Cost $24,682,514)			$	32,733,875
RIGHTS - 0.01%
India - 0.00%
Fortis Healthcare, Ltd. (Expiration Date 10/15/2009, Strike Price INR 110.00) *		54,144		1,608
Malaysia - 0.01%
Boustead Holdings BHD (Expiration Date 09/09/2009, Strike Price MYR 2.80) *		193,960		34,424
Poland - 0.00%
Polski Koncern Miesny Duda SA (Expiration Date 10/20/2009, Strike Price PLN 1.10) *		91,151		14,351
South Korea - 0.00%
Dongbu Steel Company, Ltd. (Expiration Date 09/16/2009, Strike Price KRW 6,340) *		9,969		23,628
TOTAL RIGHTS (Cost $24,587)			$	74,011
SHORT TERM INVESTMENTS - 8.11%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		8,400,669	$	84,101,622
TOTAL SHORT TERM INVESTMENTS (Cost $84,039,284)			$	84,101,622

The accompanying notes are an integral part of the financial statements.

124

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Markets Value Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 0.36%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $3,778,007 on 09/01/2009, collateralized by $3,770,000 Federal National Mortgage Association, 5.13% due 12/18/2017 (valued at $3,854,825, including interest)	$	3,778,000	$	3,778,000
TOTAL REPURCHASE AGREEMENTS
(Cost $3,778,000)			$	3,778,000
Total Investments (Emerging Markets Value Fund) (Cost $966,722,275) - 108.18%			$	1,121,867,786
Other assets and liabilities, net - (8.18)%				(84,848,865	)
TOTAL NET ASSETS - 100.00%			$	1,037,018,921

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Banking	15.14	%
Financial Services	9.23	%
Steel	6.84	%
Real Estate	4.70	%
Mining	4.57	%

Emerging Small Company Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 99.37%
Aerospace - 1.86%
BE Aerospace, Inc. *		18,922	$	324,134
Esterline Technologies Corp. *		6,555		202,680
				526,814
Apparel & Textiles - 2.44%
Gymboree Corp. *		7,330		328,310
Warnaco Group, Inc. *		9,575		364,329
				692,639
Auto Parts - 1.01%
Autoliv, Inc.		8,945		286,866
Banking - 0.73%
IBERIABANK Corp.		4,278		207,312
Biotechnology - 1.22%
Human Genome Sciences, Inc. *		12,450		246,261
Momenta Pharmaceuticals, Inc. *		10,245		101,425
				347,686
Broadcasting - 0.92%
Liberty Media Corp. - Capital, Series A *		13,665		260,865
Business Services - 5.39%
3PAR, Inc. *		39,785		351,699
FactSet Research Systems, Inc. (a)		6,765		372,346
GSI Commerce, Inc. *		22,710		393,791
ICF International, Inc. *		7,205		197,057
Business Services (continued)
Stanley, Inc. *		8,428	$	216,178
				1,531,071
Cable & Television - 1.11%
TiVo, Inc. *		32,250		316,373
Chemicals - 1.39%
Intrepid Potash, Inc. * (a)		6,425		150,923
Olin Corp.		14,500		242,730
				393,653
Commercial Services - 1.48%
HMS Holdings Corp. *		6,340		238,447
Team, Inc. *		10,350		180,401
				418,848
Computers & Business Equipment - 5.12%
Blue Coat Systems, Inc. *		13,140		257,675
NCI, Inc. *		6,965		204,423
NCR Corp. *		20,935		279,064
Netezza Corp. *		34,965		335,664
Palm, Inc. * (a)		28,310		377,372
				1,454,198
Containers & Glass - 2.34%
Greif, Inc., Class A		4,015		198,903
Packaging Corp. of America		13,114		267,001
Silgan Holdings, Inc.		4,075		198,127
				664,031
Correctional Facilities - 0.78%
The Geo Group, Inc. *		12,145		222,496
Crude Petroleum & Natural Gas - 2.08%
Carrizo Oil & Gas, Inc. * (a)		12,855		248,487
Goodrich Petroleum Corp. * (a)		6,735		161,236
Penn Virginia Corp.		9,495		181,924
				591,647
Educational Services - 1.10%
American Public Education, Inc. *		3,495		121,102
Capella Education Company * (a)		2,997		189,860
				310,962
Electrical Equipment - 0.55%
DTS, Inc. *		5,795		155,306
Electronics - 1.58%
Harman International Industries, Inc.		8,305		249,067
Jabil Circuit, Inc.		18,260		199,947
				449,014
Financial Services - 4.69%
Affiliated Managers Group, Inc. * (a)		3,638		237,671
Broadpoint Gleacher Securities, Inc. *		31,175		235,371
Janus Capital Group, Inc.		20,260		257,707
Lazard, Ltd., Class A		6,115		237,690
Stifel Financial Corp. *		6,480		364,824
				1,333,263
Food & Beverages - 0.72%
Diamond Foods, Inc.		7,350		205,432

The accompanying notes are an integral part of the financial statements.

125

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products - 5.15%
Masimo Corp. *		5,635	$	141,551
Natus Medical, Inc. *		17,829		254,063
Nuvasive, Inc. * (a)		5,090		203,956
Sirona Dental Systems, Inc. *		9,695		256,336
Thoratec Corp. *		7,500		196,800
Volcano Corp. *		16,205		231,732
Wright Medical Group, Inc. *		10,960		177,990
				1,462,428
Healthcare Services - 6.60%
Alliance Imaging, Inc. *		38,930		215,283
Amedisys, Inc. *		5,070		225,818
Emergency Medical Services Corp., Class A *		5,804		263,211
ICON PLC, SADR *		11,150		241,063
IPC The Hospitalist Company *		5,880		173,695
Phase Forward, Inc. *		15,075		193,864
Psychiatric Solutions, Inc. *		14,805		396,626
Sun Healthcare Group, Inc. *		20,083		165,484
				1,875,044
Hotels & Restaurants - 1.91%
Brinker International, Inc.		11,910		173,410
CKE Restaurants, Inc.		21,880		211,580
Texas Roadhouse, Inc., Class A *		15,465		157,588
				542,578
Household Products - 0.72%
Tempur-Pedic International, Inc. *		13,830		204,684
Industrial Machinery - 0.61%
Actuant Corp., Class A		12,205		172,457
Industrials - 0.79%
Clean Harbors, Inc. *		3,823		225,633
Insurance - 0.76%
Tower Group, Inc.		8,934		214,327
Internet Retail - 1.75%
Internet Brands, Inc., Class A *		40,165		292,803
Netflix, Inc. * (a)		4,650		203,019
				495,822
Internet Software - 2.08%
Art Technology Group, Inc. *		74,375		300,475
Vocus, Inc. *		17,265		291,088
				591,563
Leisure Time - 1.47%
Bally Technologies, Inc. *		10,300		416,429
Life Sciences - 0.70%
Halozyme Therapeutics, Inc. *		26,875		199,950
Manufacturing - 3.53%
Barnes Group, Inc.		18,044		265,066
Kaydon Corp.		6,970		232,659
Mettler-Toledo International, Inc. *		2,541		222,083
Peace Mark Holdings, Ltd. *		204,000		0
Snap-on, Inc.		7,594		283,408
				1,003,216
Medical-Hospitals - 0.68%
Genoptix, Inc. * (a)		6,720	$	192,797
Metal & Metal Products - 0.65%
RTI International Metals, Inc. *		9,600		184,512
Office Furnishings & Supplies - 2.04%
Knoll, Inc.		30,615		294,823
OfficeMax, Inc.		25,265		285,747
				580,570
Petroleum Services - 1.57%
SandRidge Energy, Inc. * (a)		19,365		236,253
Superior Energy Services, Inc. *		11,485		209,372
				445,625
Pharmaceuticals - 2.79%
Alexion Pharmaceuticals, Inc. * (a)		4,371		197,307
Eurand NV *		14,540		209,230
Onyx Pharmaceuticals, Inc. *		6,171		197,904
United Therapeutics Corp. * (a)		2,060		188,511
				792,952
Railroads & Equipment - 0.75%
Genesee & Wyoming, Inc., Class A *		6,740		211,501
Real Estate - 2.71%
Corporate Office Properties Trust, REIT		6,725		247,883
DuPont Fabros Technology, Inc., REIT		15,335		200,582
LaSalle Hotel Properties, REIT		8,441		139,699
Sunstone Hotel Investors, Inc., REIT		28,895		180,883
				769,047
Retail - 3.30%
Chico's FAS, Inc. *		23,505		299,219
Citi Trends, Inc. *		9,655		215,210
Conn's, Inc. * (a)		15,315		173,212
Saks, Inc. * (a)		41,130		250,893
				938,534
Retail Grocery - 0.90%
United Natural Foods, Inc. *		9,450		255,339
Retail Trade - 2.28%
Aaron, Inc., Class B		7,340		191,574
Hibbett Sports, Inc. *		9,390		164,982
Lumber Liquidators, Inc. *		13,275		292,050
				648,606
Semiconductors - 7.60%
Atmel Corp. *		70,255		290,153
Fairchild Semiconductor International, Inc. *		32,155		323,479
Hittite Microwave Corp. *		6,280		216,158
Monolithic Power Systems, Inc. *		12,045		271,374
ON Semiconductor Corp. *		26,835		216,558
Rovi Corp. *		8,538		259,897
Skyworks Solutions, Inc. *		21,340		248,611
Teradyne, Inc. * (a)		40,150		331,238
				2,157,468
Software - 6.76%
AsiaInfo Holdings, Inc. *		9,330		160,663
Blackboard, Inc. *		6,385		219,708
Commvault Systems, Inc. *		11,590		211,981

The accompanying notes are an integral part of the financial statements.

126

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Emerging Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software (continued)
JDA Software Group, Inc. *		11,075	$	214,191
MedAssets, Inc. *		10,806		241,298
Rosetta Stone, Inc. * (a)		11,785		259,859
Solera Holdings, Inc. *		10,257		270,169
Ultimate Software Group, Inc. *		12,965		341,887
				1,919,756
Steel - 0.77%
Steel Dynamics, Inc.		13,220		218,791
Telecommunications Equipment &
Services - 1.25%
Comtech Telecommunications Corp. *		3,801		129,310
Starent Networks Corp. * (a)		11,155		225,777
				355,087
Tires & Rubber - 0.92%
Goodyear Tire & Rubber Company *		15,865		261,614
Transportation - 1.82%
Atlas Air Worldwide Holdings, Inc. *		7,365		183,683
Genco Shipping & Trading, Ltd.		9,580		185,565
UTI Worldwide, Inc. *		11,520		148,032
				517,280
TOTAL COMMON STOCKS (Cost $24,473,828)			$	28,222,086
SHORT TERM INVESTMENTS - 12.15%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		344,708	$	3,450,976
TOTAL SHORT TERM INVESTMENTS (Cost $3,448,471)			$	3,450,976
REPURCHASE AGREEMENTS - 1.02%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $290,001 on 09/01/2009, collateralized by $270,000 Federal Home Loan Mortgage Corp., 5.00% due 02/16/2017 (valued at $295,882, including interest)	$	290,000	$	290,000
TOTAL REPURCHASE AGREEMENTS (Cost $290,000)			$	290,000
Total Investments (Emerging Small Company Fund) (Cost $28,212,299) - 112.54%			$	31,963,062
Other assets and liabilities, net - (12.54)%				(3,561,591	)
TOTAL NET ASSETS - 100.00%			$	28,401,471

Equity-Income Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 95.83%
Aerospace - 1.37%
Boeing Company		154,900	$	7,693,883
Aerospace (continued)
Lockheed Martin Corp.		38,000	$	2,849,240
				10,543,123
Air Travel - 0.52%
Southwest Airlines Company		495,400		4,052,372
Aluminum - 0.36%
Alcoa, Inc. (a)		233,700		2,816,085
Auto Parts - 0.45%
Genuine Parts Company		94,950		3,516,948
Banking - 7.12%
Allied Irish Banks PLC - London Exchange *		340,002		1,298,183
Bank of America Corp.		1,207,822		21,245,589
Bank of New York Mellon Corp.		332,200		9,836,442
KeyCorp		457,900		3,049,614
Marshall & Ilsley Corp.		176,800		1,258,816
SunTrust Banks, Inc.		261,800		6,118,266
U.S. Bancorp		537,600		12,160,512
				54,967,422
Biotechnology - 0.66%
Amgen, Inc. *		85,300		5,095,822
Broadcasting - 0.15%
CBS Corp., Class B		113,700		1,176,795
Building Materials & Construction - 0.75%
Masco Corp.		400,200		5,794,896
Business Services - 1.28%
Accenture, Ltd., Class A		46,900		1,547,700
Computer Sciences Corp. *		142,400		6,956,240
H & R Block, Inc.		79,600		1,375,488
				9,879,428
Cable & Television - 0.65%
Cablevision Systems Corp., Class A		223,800		4,999,692
Cellular Communications - 0.43%
Vodafone Group PLC		1,540,083		3,319,802
Chemicals - 0.88%
E.I. Du Pont de Nemours & Company		212,500		6,785,125
Coal - 0.33%
CONSOL Energy, Inc.		68,100		2,547,621
Computers & Business Equipment - 1.16%
Cisco Systems, Inc. *		151,900		3,281,040
Dell, Inc. *		360,500		5,706,715
				8,987,755
Construction Materials - 1.09%
USG Corp. *		140,200		2,083,372
Vulcan Materials Company (a)		126,600		6,335,064
				8,418,436
Cosmetics & Toiletries - 1.52%
International Flavors & Fragrances, Inc.		163,600		5,827,432
Kimberly-Clark Corp.		98,000		5,925,080
				11,752,512
Crude Petroleum & Natural Gas - 0.47%
Sunoco, Inc.		136,100		3,661,090

The accompanying notes are an integral part of the financial statements.

127

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Equity-Income Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electrical Equipment - 0.49%
Cooper Industries, Ltd., Class A		116,800	$	3,766,800
Electrical Utilities - 3.98%
CenterPoint Energy, Inc.		93,900		1,164,360
Constellation Energy Group, Inc.		122,800		3,886,620
Entergy Corp.		80,800		6,383,200
FirstEnergy Corp.		72,975		3,293,362
PG&E Corp.		119,100		4,834,269
Pinnacle West Capital Corp.		122,800		4,041,348
Teco Energy, Inc. (a)		114,100		1,519,812
Xcel Energy, Inc.		284,900		5,626,775
				30,749,746
Electronics - 0.34%
Harman International Industries, Inc.		86,800		2,603,132
Energy - 1.71%
Duke Energy Corp.		333,300		5,162,817
NRG Energy, Inc. *		71,300		1,914,405
Progress Energy, Inc.		154,900		6,123,197
				13,200,419
Financial Services - 10.82%
American Express Company		455,000		15,388,100
Capital One Financial Corp.		158,900		5,925,381
Federal National Mortgage Association * (a)		198,917		383,910
Goldman Sachs Group, Inc.		40,200		6,651,492
JPMorgan Chase & Company		687,514		29,879,359
Legg Mason, Inc.		93,500		2,689,060
NYSE Euronext		47,600		1,348,984
SLM Corp. *		469,700		4,180,330
UBS AG *		218,860		4,009,515
Wells Fargo & Company		475,400		13,083,008
				83,539,139
Food & Beverages - 3.26%
Anheuser-Busch InBev NV		75,706		3,270,218
Hershey Company		315,300		12,369,219
Kraft Foods, Inc., Class A		226,000		6,407,100
McCormick & Company, Inc.		95,000		3,094,150
				25,140,687
Forest Products - 0.34%
Weyerhaeuser Company		70,100		2,621,039
Gas & Pipeline Utilities - 1.23%
NiSource, Inc.		471,700		6,231,157
Spectra Energy Corp.		175,300		3,299,146
				9,530,303
Healthcare Products - 0.93%
Johnson & Johnson		118,700		7,174,228
Healthcare Services - 0.50%
WellPoint, Inc. *		73,100		3,863,335
Homebuilders - 0.26%
D.R. Horton, Inc.		148,900		1,996,749
Hotels & Restaurants - 0.65%
Marriott International, Inc., Class A		210,125		5,021,996
Household Appliances - 1.46%
Black & Decker Corp.		58,400		2,576,608
Whirlpool Corp. (a)		135,100	$	8,674,771
				11,251,379
Household Products - 1.23%
Fortune Brands, Inc.		237,700		9,462,837
Industrial Machinery - 1.13%
Deere & Company		166,600		7,263,760
Pall Corp.		49,700		1,477,581
				8,741,341
Industrials - 2.29%
General Electric Company		1,269,600		17,647,440
Insurance - 3.42%
Chubb Corp.		72,900		3,600,531
Lincoln National Corp.		241,798		6,102,981
Marsh & McLennan Companies, Inc.		379,800		8,940,492
Progressive Corp. *		210,300		3,474,156
The Travelers Companies, Inc.		84,749		4,273,045
				26,391,205
International Oil - 10.96%
Anadarko Petroleum Corp.		142,400		7,528,688
BP PLC, SADR		177,992		9,157,688
Chevron Corp.		284,860		19,923,108
ConocoPhillips Company		66,400		2,989,992
Exxon Mobil Corp.		284,824		19,695,580
Murphy Oil Corp.		178,000		10,146,000
Royal Dutch Shell PLC, ADR		273,000		15,143,310
				84,584,366
Internet Retail - 0.67%
eBay, Inc. *		233,700		5,174,118
Internet Software - 0.20%
Electronic Arts, Inc. *		83,200		1,515,904
Leisure Time - 1.30%
MGM Mirage, Inc. *		236,500		2,003,155
Walt Disney Company (a)		308,800		8,041,152
				10,044,307
Manufacturing - 4.52%
3M Company		178,300		12,855,430
Eaton Corp.		46,700		2,519,465
Harley-Davidson, Inc. (a)		170,200		4,081,396
Honeywell International, Inc.		154,900		5,694,124
Illinois Tool Works, Inc.		233,700		9,773,334
				34,923,749
Multimedia - 1.38%
Time Warner, Inc.		381,666		10,652,298
Office Furnishings & Supplies - 0.61%
Avery Dennison Corp.		151,900		4,693,710
Paper - 2.32%
International Paper Company		460,325		10,564,459
MeadWestvaco Corp.		218,200		4,789,490
WPP PLC, SADR		303,823		2,553,927
				17,907,876

The accompanying notes are an integral part of the financial statements.

128

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Equity-Income Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Petroleum Services - 1.37%
BJ Services Company		116,800	$	1,875,808
Schlumberger, Ltd.		154,300		8,671,660
				10,547,468
Pharmaceuticals - 4.07%
Bristol-Myers Squibb Company		284,900		6,304,837
Eli Lilly & Company		187,000		6,257,020
Merck & Company, Inc. (a)		266,000		8,626,380
Wyeth		214,100		10,244,685
				31,432,922
Publishing - 1.54%
McGraw-Hill Companies, Inc.		273,700		9,199,057
The New York Times Company, Class A (a)		350,500		2,667,305
				11,866,362
Railroads & Equipment - 0.16%
Norfolk Southern Corp.		26,600		1,220,142
Retail Trade - 3.90%
Bed Bath & Beyond, Inc. * (a)		266,400		9,718,272
Home Depot, Inc. (a)		462,900		12,632,541
Macy’s, Inc.		173,700		2,695,824
Tiffany & Company (a)		140,200		5,100,476
				30,147,113
Semiconductors - 1.85%
Analog Devices, Inc.		245,400		6,932,550
Applied Materials, Inc.		198,600		2,617,548
Intel Corp.		232,500		4,724,400
				14,274,498
Software - 1.40%
Microsoft Corp.		439,300		10,828,745
Steel - 0.99%
Nucor Corp.		170,900		7,611,886
Telephone - 3.70%
AT&T, Inc.		569,673		14,839,982
Qwest Communications International, Inc. (a)		1,198,500		4,302,615
Sprint Nextel Corp. *		504,600		1,846,836
Verizon Communications, Inc.		244,152		7,578,478
				28,567,911
Toys, Amusements & Sporting Goods - 0.68%
Mattel, Inc.		290,700		5,229,693
Trucking & Freight - 0.98%
United Parcel Service, Inc., Class B		142,300		7,607,358
TOTAL COMMON STOCKS (Cost $771,764,451)			$	739,847,125
CONVERTIBLE BONDS - 0.54%
Automobiles - 0.54%
Ford Motor Company
4.25% due 12/15/2036		3,989,000		4,163,519
TOTAL CONVERTIBLE BONDS (Cost $2,005,009)			$	4,163,519
SHORT TERM INVESTMENTS - 12.18%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		6,590,847	$	65,982,948
T. Rowe Price Reserve Investment Fund, 0.3265%	$	28,100,184	$	28,100,184
TOTAL SHORT TERM INVESTMENTS (Cost $94,080,460)			$	94,083,132
REPURCHASE AGREEMENTS - 0.10%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $750,001 on 09/01/2009,collateralized by $750,000 Federal National Mortgage Association, 4.12% due 05/06/2013 (valued at$765,150, including interest)	$	750,000	$	750,000
TOTAL REPURCHASE AGREEMENTS (Cost $750,000)			$	750,000
Total Investments (Equity-Income Fund) (Cost $868,599,920) - 108.65%			$	838,843,776
Other assets and liabilities, net - (8.65)%				(66,774,224	)
TOTAL NET ASSETS - 100.00%			$	772,069,552

Fundamental Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 95.30%
Agriculture - 0.55%
Monsanto Company		92,320	$	7,743,802
Automobiles - 0.30%
PACCAR, Inc.		116,540		4,215,252
Banking - 4.22%
Bank of New York Mellon Corp.		891,195		26,388,284
Julius Baer Holding AG		640,572		32,694,941
				59,083,225
Broadcasting - 2.17%
Grupo Televisa SA, SADR		412,609		7,212,405
Liberty Media Corp. - Entertainment, Series A *		249,148		6,948,738
News Corp., Class A		1,518,160		16,274,675
				30,435,818
Business Services - 3.51%
Dun & Bradstreet Corp.		25,405		1,855,581
H & R Block, Inc.		477,473		8,250,734
Iron Mountain, Inc. *		956,604		28,018,931
Moody’s Corp.		404,137		11,008,692
				49,133,938
Cable & Television - 1.03%
Comcast Corp., Class A		991,015		14,458,909
Chemicals - 0.21%
Potash Corp. of Saskatchewan, Inc.		33,282		2,945,790
Coal - 0.65%
China Coal Energy Company, Series H		7,092,652		9,062,804

The accompanying notes are an integral part of the financial statements.

129

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Fundamental Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Computers & Business Equipment - 1.45%
Hewlett-Packard Company		451,840	$	20,283,098
Construction Materials - 1.09%
Martin Marietta Materials, Inc. (a)		80,838		7,079,792
Vulcan Materials Company (a)		164,831		8,248,143
				15,327,935
Containers & Glass - 1.90%
Sealed Air Corp.		1,406,196		26,591,166
Cosmetics & Toiletries - 1.49%
Natura Cosmeticos SA		90,700		1,467,312
Procter & Gamble Company		357,436		19,340,862
				20,808,174
Crude Petroleum & Natural Gas - 10.63%
Devon Energy Corp.		678,404		41,640,438
EOG Resources, Inc.		547,551		39,423,672
Occidental Petroleum Corp.		881,545		64,440,939
OGX Petroleo e Gas Participacoes SA		6,100		3,317,504
				148,822,553
Electrical Utilities - 0.19%
AES Corp. *		190,750		2,607,552
Electronics - 1.35%
Agilent Technologies, Inc. *		632,740		16,248,763
Garmin, Ltd. (a)		80,690		2,652,280
				18,901,043
Financial Services - 13.13%
American Express Company		1,486,640		50,278,165
Ameriprise Financial, Inc.		296,587		8,906,508
Brookfield Asset Management, Inc.		317,410		6,452,945
Goldman Sachs Group, Inc.		51,510		8,522,845
JPMorgan Chase & Company		1,029,143		44,726,555
Visa, Inc.		51,670		3,673,737
Wells Fargo & Company (a)		2,223,981		61,203,957
				183,764,712
Food & Beverages - 2.34%
Diageo PLC, SADR		357,848		22,200,890
Hershey Company		92,299		3,620,890
The Coca-Cola Company		143,300		6,988,741
				32,810,521
Forest Products - 0.72%
Sino-Forest Corp. *		805,940		10,012,134
Healthcare Products - 2.34%
Becton, Dickinson & Company		155,940		10,856,543
Johnson & Johnson		362,580		21,914,335
				32,770,878
Healthcare Services - 2.97%
Cardinal Health, Inc.		289,139		9,998,426
Express Scripts, Inc. *		224,126		16,186,380
Laboratory Corp. of America Holdings * (a)		50,400		3,517,416
UnitedHealth Group, Inc.		423,620		11,861,360
				41,563,582
Holdings Companies/Conglomerates - 6.07%
Berkshire Hathaway, Inc., Class A *		710		71,603,500
China Merchants Holdings International Company, Ltd.		4,102,376		13,295,894
				84,899,394
Household Products - 0.16%
Hunter Douglas NV		54,893		2,269,007
Industrials - 0.26%
Cosco Pacific, Ltd.		2,412,217		3,608,241
Insurance - 7.00%
American International Group, Inc. * (a)		32,334		1,465,700
Hartford Financial Services Group, Inc.		277,354		6,578,837
Loews Corp.		1,069,714		36,530,733
Markel Corp. *		3,885		1,277,621
NIPPONKOA Insurance Company, Ltd.		98,365		608,603
Principal Financial Group, Inc.		117,330		3,332,172
Progressive Corp. *		1,802,973		29,785,114
Sun Life Financial, Inc.		71,355		2,102,118
Transatlantic Holdings, Inc.		332,421		16,242,090
				97,922,988
International Oil - 2.64%
Canadian Natural Resources, Ltd.		504,133		28,851,532
ConocoPhillips Company		179,872		8,099,636
				36,951,168
Internet Content - 1.46%
Google, Inc., Class A *		44,336		20,468,601
Internet Retail - 0.64%
Amazon.com, Inc. *		74,843		6,076,503
Liberty Media Corp. - Interactive A *		305,766		2,929,238
				9,005,741
Leisure Time - 0.73%
Walt Disney Company		392,230		10,213,669
Liquor - 1.03%
Heineken Holding NV (a)		404,958		14,354,851
Manufacturing - 2.32%
ABB, Ltd., SADR *		324,290		6,216,639
Harley-Davidson, Inc. (a)		613,522		14,712,258
Tyco International, Ltd.		364,167		11,540,452
				32,469,349
Mining - 0.79%
BHP Billiton PLC		236,672		6,210,187
Rio Tinto PLC		128,661		4,918,906
				11,129,093
Petroleum Services - 0.80%
Transocean, Ltd. *		148,343		11,250,333
Pharmaceuticals - 3.71%
Merck & Company, Inc. (a)		412,700		13,383,861
Pfizer, Inc. (a)		718,000		11,990,600
Schering-Plough Corp.		942,460		26,558,523
				51,932,984
Real Estate - 0.58%
Hang Lung Group, Ltd.		1,751,509		8,064,215

The accompanying notes are an integral part of the financial statements.

130

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Fundamental Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade - 8.42%
Bed Bath & Beyond, Inc. * (a)		479,123	$	17,478,407
CarMax, Inc. * (a)		406,171		7,030,820
Costco Wholesale Corp.		1,122,233		57,211,438
CVS Caremark Corp.		962,838		36,125,682
				117,846,347
Semiconductors - 2.05%
Texas Instruments, Inc.		1,165,513		28,659,965
Shipbuilding - 0.27%
China Shipping Development Company, Ltd., Class H		3,071,063		3,840,442
Software - 2.23%
Activision Blizzard, Inc. *		607,900		7,057,719
Microsoft Corp.		979,781		24,151,602
				31,209,321
Tobacco - 0.89%
Philip Morris International, Inc.		272,440		12,453,232
Trucking & Freight - 1.01%
Kuehne & Nagel International AG		88,816		7,061,545
United Parcel Service, Inc., Class B		132,041		7,058,912
				14,120,457
TOTAL COMMON STOCKS (Cost $1,350,279,045)			$	1,334,012,284
CONVERTIBLE BONDS - 0.16%
Forest Products - 0.16%
Sino-Forest Corp.
5.00% due 08/01/2013 (f)		2,257,900		2,190,163
TOTAL CONVERTIBLE BONDS (Cost $2,241,619)			$	2,190,163
CORPORATE BONDS - 1.00%
Containers & Glass - 0.39%
Sealed Air Corp.
12.00% due 02/14/2014 (f)		5,000,000		5,418,145
Manufacturing - 0.61%
Harley-Davidson, Inc.
15.00% due 02/01/2014		7,000,000		8,531,719
TOTAL CORPORATE BONDS (Cost $12,000,000)			$	13,949,864
SHORT TERM INVESTMENTS - 12.12%
John Hancock Collateral
Investment Trust, 0.3900% ( c) (g)		11,347,070	$	113,598,925
Rabobank USA Financial Corp.
0.14% due 09/04/2009		25,000,000		24,999,708
UBS Finance Delaware LLC
0.19% due 09/01/2009		31,054,000		31,054,000
TOTAL SHORT TERM INVESTMENTS (Cost $169,624,537)			$	169,652,633
Total Investments (Fundamental Value Fund) (Cost $1,534,145,201) - 108.58%			$	1,519,804,944
Other assets and liabilities, net - (8.58)%				(120,067,856	)
TOTAL NET ASSETS - 100.00%			$	1,399,737,088

Global Agribusiness Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 97.76%
Australia - 1.10%
Metcash, Ltd.		7,000	$	25,320
Bermuda - 0.37%
PureCircle, Ltd. *		1,800		8,551
Canada - 13.71%
AG Growth International, Inc.		400		11,769
Agrium, Inc.		2,100		100,191
Potash Corp. of Saskatchewan, Inc.		280		24,855
Potash Corp. of Saskatchewan, Inc.		1,600		141,616
Potash One, Inc. *		7,700		15,826
Saputo, Inc.		800		20,147
				314,404
France - 0.70%
DANONE S.A. SADR *		1,500		16,125
Japan - 1.50%
MEIJI Holdings Company, Ltd. *		200		8,163
Toyo Suisan Kaisha, Ltd.		500		12,739
Yamazaki Baking Company, Ltd.		1,000		13,511
				34,413
Norway - 1.19%
Yara International ASA, ADR		1,000		27,210
Singapore - 8.37%
Golden Agri-Resources, Ltd. *		146,250		48,139
Olam International, Ltd.		22,000		37,555
Wilmar International, Ltd.		23,400		106,198
				191,892
Switzerland - 12.71%
Nestle SA, SADR		1,600		66,320
Nestle SA		900		37,407
Syngenta AG, ADR		4,000		187,680
				291,407
United Kingdom - 5.36%
Cadbury PLC, SADR		500		18,895
Unilever PLC, SADR		3,800		104,082
				122,977
United States - 52.75%
Archer-Daniels-Midland Company		8,300		239,289
Bunge, Ltd.		3,200		214,432
Campbell Soup Company		500		15,680
CF Industries Holdings, Inc.		800		65,328
Dean Foods Company *		1,000		18,140
General Mills, Inc.		1,400		83,622
Hormel Foods Corp.		400		14,780
Intrepid Potash, Inc. *		2,300		54,027
J.M. Smucker Company		700		36,589
Kellogg Company		200		9,418
Kraft Foods, Inc., Class A		2,000		56,700
McCormick & Company, Inc.		200		6,514
Monsanto Company		2,800		234,864
Ralcorp Holdings, Inc. *		500		31,365
Terra Industries, Inc.		1,700		52,887

The accompanying notes are an integral part of the financial statements.

131

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Agribusiness Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United States (continued)
The Mosaic Company		1,570	$	76,098
				1,209,733
TOTAL COMMON STOCKS (Cost $1,951,524)			$	2,242,032
WARRANTS - 0.04%
Singapore - 0.04%
Golden Agri-Resources, Ltd. (Expiration Date 07/23/2012, Strike Price: SGD 0.54) *		8,500		885
TOTAL WARRANTS (Cost $0)			$	885
Total Investments (Global Agribusiness Fund) (Cost $1,951,524) - 97.80%			$	2,242,917
Other assets and liabilities, net - 2.20%				50,494
TOTAL NET ASSETS - 100.00%			$	2,293,411

The portfolio had the following four top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Agriculture	53.81	%
Food & Beverages	28.67	%
Chemicals	14.77	%
Manufacturing	0.51	%

Global Bond Fund

		Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 1.33%
U.S. Treasury Bonds - 0.47%
4.50% due 08/15/2039		$	2,900,000	$	3,056,327
U.S. Treasury Notes - 0.86%
0.875% due 04/30/2011 ***			2,191,000		2,194,337
1.125% due 06/30/2011 ***			308,000		309,372
2.625% due 07/31/2014			3,000,000		3,035,625
					5,539,334
TOTAL U.S. TREASURY OBLIGATIONS (Cost $8,372,919)				$	8,595,661
U.S. GOVERNMENT AGENCY OBLIGATIONS - 15.24%
Federal Home Loan Mortgage Corp. - 0.13%
0.3894% due 05/04/2011 (b)***			18,000		18,027
0.7025% due 03/09/2011 ***			512,000		513,253
0.3431% due 02/01/2011 (b)***			279,000		278,902
					810,182
Federal National Mortgage Association - 8.57%
0.6156% due 03/25/2044 (b)			478,016		434,081
2.41% due 11/01/2042 to 10/01/2044 (b)			3,484,265		3,486,168
3.147% due 11/01/2035 (b)			622,700		630,856
5.139% due 09/01/2035 (b)			309,416		323,566
5.169% due 07/01/2035 (b)			296,741		310,731
5.50% due 02/01/2033 to 10/01/2038		$	18,381,182	$	19,168,524
5.50% TBA **			10,000,000		10,282,810
6.00% due 04/01/2036 to 08/01/2038			19,594,081		20,681,917
					55,318,653
Government National Mortgage Association - 6.54%
5.50% TBA **			500,000		522,109
6.00% due 08/15/2038 to 01/15/2039			39,469,492		41,731,280
					42,253,389
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $97,668,096)				$	98,382,224
FOREIGN GOVERNMENT OBLIGATIONS - 23.77%
Canada - 1.21%
Province of Ontario, Canada
4.70% due 06/02/2037	CAD		1,300,000		1,186,307
5.00% due 12/01/2038			3,700,000		3,489,576
5.75% due 12/01/2036			2,100,000		2,175,406
5.85% due 03/08/2033			600,000		626,395
6.20% due 06/02/2031			100,000		108,112
Province of Ontario
4.10% due 06/16/2014		$	200,000		209,940
					7,795,736
France - 10.29%
Government of France
3.00% due 07/12/2014	EUR		5,700,000		8,321,626
3.75% due 04/25/2021			1,600,000		2,311,421
3.75% due 01/12/2013			1,400,000		2,111,846
3.75% due 04/25/2017			5,000,000		7,449,555
3.75% due 10/25/2019			3,300,000		4,821,810
4.00% due 04/25/2055			1,000,000		1,405,056
4.00% due 10/25/2014			4,600,000		7,019,840
4.00% due 10/25/2038			1,150,000		1,621,008
4.00% due 04/25/2018 (j)			4,000,000		6,012,745
4.25% due 04/25/2019			4,900,000		7,460,094
4.25% due 10/25/2018			10,300,000		15,705,933
4.75% due 10/25/2012			1,400,000		2,172,680
					66,413,614
Germany - 3.47%
Federal Republic of Germany
4.00% due 01/04/2037			4,000,000		5,729,695
4.25% due 07/04/2039			7,700,000		11,589,988
4.25% due 07/04/2018			1,000,000		1,552,803
4.75% due 07/04/2034			2,000,000		3,168,312
6.25% due 01/04/2030			200,000		372,188
					22,412,986
Japan - 4.90%
Government of Japan
1.20% due 03/10/2017	JPY		160,480,000		1,592,382
1.20% due 06/10/2017			876,960,000		8,657,447
1.20% due 12/10/2017			80,080,000		787,547
1.30% due 03/20/2018 (j)			530,000,000		5,778,806
1.50% due 12/20/2017			250,000,000		2,775,433
2.40% due 03/20/2034 (j)			60,000,000		665,747

The accompanying notes are an integral part of the financial statements.

132

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Portfolio of Investments — August 31, 2009 (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 06/20/2036	JPY		870,000,000	$	9,869,568
2.50% due 03/20/2036			130,000,000		1,471,942
					31,598,872
Netherlands - 3.51%
Kingdom of Netherlands
3.25% due 07/15/2015	EUR		3,700,000		5,416,503
4.00% due 07/15/2019			9,000,000		13,364,299
4.00% due 07/15/2018			2,600,000		3,882,230
					22,663,032
United Kingdom - 0.39%
Government of United Kingdom
4.25% due 06/07/2032	GBP		1,500,000		2,534,842
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $146,479,682)				$	153,419,082
CORPORATE BONDS - 37.72%
Australia - 5.47%
Bank of Queensland, Ltd.
3.7662% due 10/22/2012 (b)	AUD		2,500,000		2,115,892
Bank of Scotland PLC, Series DMTN
3.81% due 07/24/2012 (b)			2,900,000		2,453,264
Citigroup Pty, Ltd.
3.9317% due 06/18/2012 (b)			5,500,000		4,679,187
5.50% due 06/18/2012			2,000,000		1,689,152
Commonwealth Bank of Australia
0.925% due 07/12/2013 (b)(f)		$	5,400,000		5,380,479
1.03% due 12/10/2012 (b)(f)			3,000,000		3,000,175
2.50% due 12/10/2012 (f)			3,400,000		3,449,790
Commonwealth Bank of Australia, Series TCD
4.50% due 02/20/2014	AUD		2,500,000		1,993,136
Macquarie Bank, Ltd.
3.30% due 07/17/2014 (f)		$	5,200,000		5,208,840
National Australia Bank, Ltd.
3.375% due 07/08/2014 (f)			3,400,000		3,405,847
National Australia Bank, Ltd., EMTN
0.80% due 06/19/2017 (b)			1,700,000		1,498,791
0.8313% due 06/29/2016 (b)			500,000		449,782
					35,324,335
Canada - 2.98%
Alcan, Inc.
6.45% due 03/15/2011			700,000		731,471
Canada Housing Trust No. 1
4.05% due 03/15/2011	CAD		6,900,000		6,587,192
4.60% due 09/15/2011			2,700,000		2,621,176
Canadian Imperial Bank of Commerce, Series EMTN
5.25% due 09/16/2010	EUR		3,000,000		4,441,012
Citigroup Finance Canada, Inc., MTN
5.50% due 05/21/2013	CAD		300,000		263,512
Falconbridge, Ltd.
7.35% due 06/05/2012		$	3,000,000		3,141,630
Master Credit Card Trust, Series 06-1
4.38% due 11/21/2009	CAD		1,600,000		1,473,447
					19,259,440
Cayman Islands - 1.47%
Foundation Re II, Ltd.
7.19% due 11/26/2010 (b)(f)		$	400,000	$	380,442
Mizuho Financial Group (Cayman), Ltd.
8.375% due 01/29/2049			2,500,000		2,450,000
MUFG Capital Finance 2, Ltd.
4.85% until 07/25/2016, then variable due 12/31/2049	EUR		2,500,000		2,894,580
MUFG Capital Finance 5, Ltd.
6.299% until 01/25/2017, then variable due 01/25/2049	GBP		1,513,000		1,933,625
Residential Reinsurance 2007, Ltd., Series CL4
6.6675% due 06/07/2010 (b)(f)		$	1,900,000		1,869,220
					9,527,867
France - 4.02%
BNP Paribas Covered Bonds SA, EMTN
4.75% due 05/28/2013	EUR		1,700,000		2,600,723
BNP Paribas Home Loan Covered Bonds SA, EMTN
3.00% due 07/23/2013			2,100,000		3,025,316
Dexia Credit Local
2.375% due 09/23/2011 (f)		$	2,800,000		2,836,554
Lafarge SA
6.50% due 07/15/2016			2,000,000		1,960,772
Societe Financement de l’Economie Francaise
2.25% due 06/11/2012 (f)			5,500,000		5,527,499
3.375% due 05/05/2014 (f)			2,300,000		2,343,316
Societe Financement de l’Economie Francaise, EMTN
2.125% due 05/20/2012	EUR		200,000		288,592
Societe Generale Societe de Credit Fonciere, EMTN
4.00% due 07/07/2016			2,000,000		2,946,795
Vivendi
5.75% due 04/04/2013 (f)		$	4,300,000		4,405,883
					25,935,450
Germany - 1.31%
Kreditanstalt Fuer Wiederaufbau
4.875% due 06/17/2019			4,600,000		4,965,291
Kreditanstalt Fuer Wiederaufbau, MTN
5.50% due 06/05/2014	AUD		4,200,000		3,471,768
					8,437,059
Ireland - 0.08%
Osiris Capital PLC, Series D
5.5094% due 01/15/2010 (b)(f)		$	500,000		495,022
Netherlands - 2.70%
Fortis Bank Nederland Holding NV, EMTN
3.375% due 05/19/2014	EUR		2,400,000		3,508,209
ING Bank NV, EMTN
3.375% due 03/03/2014			1,800,000		2,621,281
LeasePlan Corp NV, EMTN
3.25% due 05/22/2014			1,100,000		1,598,028
NIBC Bank NV, EMTN
3.50% due 04/07/2014			4,000,000		5,839,623
Rabobank Nederland
11.00% until 06/30/2019, then variable due 12/29/2049 (f)		$	3,275,000		3,868,594
					17,435,735

The accompanying notes are an integral part of the financial statements.

133

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value
CORPORATE BONDS (continued)
New Zealand - 0.47%
Westpac Securities NZ, Ltd.
3.45% due 07/28/2014 (f)		$	3,000,000	$	3,010,695
Norway - 0.39%
DnB NOR Boligkreditt, EMTN
4.50% due 05/16/2011	EUR		1,700,000		2,530,997
South Korea - 0.25%
Export-Import Bank of Korea, Series E, MTN
5.75% due 05/22/2013			1,100,000		1,595,993
Spain - 0.62%
Caja de Ahorros y Monte de Piedad de Madrid
4.25% due 02/21/2014			2,700,000		3,982,543
Switzerland - 0.76%
UBS AG/Stamford Branch, MTN
5.75% due 04/25/2018		$	5,000,000		4,912,095
United Kingdom - 1.98%
Barclays Bank PLC
10.179% due 06/12/2021 (f)			800,000		994,920
Barclays Bank PLC, EMTN
1.144% due 04/20/2016 (b)	EUR		600,000		749,792
HBOS PLC, EMtN
1.57% due 09/01/2016 (b)			3,200,000		3,348,888
Lloyds TSB Bank PLC
1.5969% due 04/02/2012 (b)(f)		$	1,900,000		1,895,560
Pearson Dollar Finance Two PLC
6.25% due 05/06/2018 (f)			1,000,000		1,037,064
Royal Bank of Scotland Group PLC
7.0916% until 09/29/2017, then variable due 10/29/2049	EUR		3,500,000		1,906,687
Royal Bank of Scotland PLC
2.625% due 05/11/2012 (f)		$	2,400,000		2,434,248
XL Capital Finance PLC
6.50% due 01/15/2012			400,000		400,439
					12,767,598
United States - 15.22%
Altria Group, Inc.
9.25% due 08/06/2019			2,000,000		2,413,842
American Electric Power Company, Inc.
5.25% due 06/01/2015			2,000,000		2,065,846
American Express Bank FSB, BKNT
0.425% due 06/12/2012 (b)			900,000		835,707
American General Finance Corp.
6.90% due 12/15/2017			2,000,000		1,234,934
American International Group, Inc.
8.25% due 08/15/2018			1,800,000		1,441,539
American International Group, Inc., MTN
5.85% due 01/16/2018			2,200,000		1,465,994
American International Group, Inc., Series A3
4.875% until 03/15/2017, then variable due 03/15/2067	EUR		1,000,000		566,272
American International Group, Inc., Series REGS
8.00% until 05/22/2018, then variable due 05/22/2038			1,150,000		807,833
American International Group, Inc., Series WI
8.175% until 05/15/2038, then variable due 05/15/2068		$	3,600,000		1,692,000
Autozone, Inc.
5.875% due 10/15/2012			500,000		530,131
BAE Systems Holdings, Inc.
6.40% due 12/15/2011 (f)			700,000		750,321
Bank of America Corp., Series E, MTN
4.625% due 02/07/2017	EUR		1,500,000		1,857,816
Bear Stearns Companies, Inc.
7.25% due 02/01/2018		$	4,400,000		5,017,602
Boston Scientific Corp.
6.00% due 06/15/2011			700,000		714,875
Capital One Financial Corp., MTN
5.70% due 09/15/2011			600,000		619,111
CBS Corp.
8.875% due 05/15/2019			1,800,000		1,935,941
Citigroup, Inc.
5.50% due 04/11/2013			3,400,000		3,384,187
6.00% due 08/15/2017			2,800,000		2,631,787
6.125% due 11/21/2017			3,400,000		3,207,400
Citigroup, Inc., EMTN
1.083% due 02/09/2016 (b)	EUR		2,500,000		2,923,431
1.40% due 03/05/2014 (b)			5,900,000		7,413,796
CNA Financial Corp.
6.00% due 08/15/2011		$	1,000,000		999,198
D.R. Horton, Inc.
6.00% due 04/15/2011			800,000		796,000
DaimlerChrysler NA Holding Corp., MTN
5.75% due 09/08/2011			300,000		314,573
General Electric Capital Corp.
6.375% until 11/15/2017, then variable due 11/15/2067			1,000,000		807,500
Goldman Sachs Group, Inc.
5.25% due 06/01/2016	CAD		1,500,000		1,394,510
Goldman Sachs Group, Inc., Series E, MTN
6.375% due 05/02/2018	EUR		1,000,000		1,559,207
Home Depot, Inc.
5.40% due 03/01/2016		$	1,000,000		1,034,552
HSBC Finance Corp.
0.9794% due 09/14/2012 (b)			1,700,000		1,615,921
5.25% due 01/15/2014			400,000		407,859
Intuit, Inc.
5.75% due 03/15/2017			2,000,000		2,041,996
Johnson Controls, Inc.
5.25% due 01/15/2011			600,000		614,972
JPMorgan Chase & Company
6.00% due 01/15/2018			1,500,000		1,612,039
6.40% due 05/15/2038			1,900,000		2,098,145
JPMorgan Chase & Company, MTN
5.058% until 02/22/2016, then variable due 02/22/2021	CAD		700,000		617,260
JPMorgan Chase Bank NA
4.375% until 11/14/2016, then variable due 11/30/2021	EUR		500,000		671,192
JPMorgan Chase Capital XX, Series T
6.55% due 09/15/2066		$	900,000		784,398
Kinder Morgan Energy Partners LP, MTN
6.95% due 01/15/2038			300,000		324,336
Lehman Brothers Holdings, Inc., MTN
5.625% due 01/24/2013 ^			3,600,000		657,000
6.875% due 05/02/2018 ^			4,200,000		771,750

The accompanying notes are an integral part of the financial statements.

134

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount		Value
CORPORATE BONDS (continued)
United States (continued)
Loews Corp.
5.25% due 03/15/2016		$	200,000	$	201,121
Masco Corp.
6.125% due 10/03/2016			700,000		639,727
McKesson Corp.
5.70% due 03/01/2017			600,000		623,525
Merrill Lynch & Company, Inc., EMTN
1.129% due 05/30/2014 (b)	EUR		600,000		749,602
Merrill Lynch & Company, Inc., MTN
6.875% due 04/25/2018		$	3,200,000		3,267,459
Morgan Stanley
0.96% due 10/18/2016 (b)			600,000		531,171
0.9894% due 10/15/2015 (b)			4,600,000		4,178,732
Morgan Stanley, EMTN
1.60% due 03/01/2013 (b)	EUR		1,100,000		1,457,068
1.845% due 04/13/2016 (b)			200,000		247,907
Motorola, Inc.
6.00% due 11/15/2017		$	700,000		638,412
Nabors Industries, Inc.
6.15% due 02/15/2018			2,000,000		1,948,622
Nationwide Health Properties, Inc.
6.50% due 07/15/2011			600,000		583,957
Nisource Finance Corp.
5.40% due 07/15/2014			200,000		200,144
Norfolk Southern Corp.
5.257% due 09/17/2014			2,000,000		2,139,760
President and Fellows of Harvard College
6.50% due 01/15/2039 (f)			1,700,000		1,984,937
Sabre Holdings Corp.
7.35% due 08/01/2011			700,000		666,750
Sara Lee Corp.
6.25% due 09/15/2011			500,000		535,201
Sealed Air Corp.
5.625% due 07/15/2013 (f)			700,000		704,663
Simon Property Group LP, REIT
6.10% due 05/01/2016			1,000,000		997,200
Southwest Airlines Company
5.125% due 03/01/2017			500,000		462,805
Sprint Capital Corp.
8.75% due 03/15/2032			200,000		166,000
Sprint Nextel Corp.
6.00% due 12/01/2016			1,000,000		840,000
8.375% due 08/15/2017			3,000,000		2,857,500
Tate & Lyle International Finance PLC
5.00% due 11/15/2014 (f)			300,000		281,766
The Board of Trustees of The Leland Stanford Junior University
4.75% due 05/01/2019			1,900,000		1,992,967
Wells Fargo Capital XIII, Series GMTN
7.70% until 03/26/2013, then variable due 12/29/2049			2,000,000		1,740,000
WM Covered Bond Program, Series EMTN
3.875% due 09/27/2011	EUR		3,500,000		5,002,600
					98,272,369
TOTAL CORPORATE BONDS (Cost $247,297,606)				$	243,487,198
MUNICIPAL BOND-0.83%
California-0.62%
Golden State Tobacco Securitization Corp., California Tobacco Settlement Revenue, Series A
5.00% due 06/01/2038			4,300,000		3,772,304
Golden State Tobacco Securitization Corp., California Tobacco Settlement Revenue, Series A-1
5.125% due 06/01/2047			300,000		209,481
					3,981,785
New York - 0.02%
New York City Municipal Water Finance Authority, Water & Sewer Revenue, Series 1289
7.429% due 12/15/2013 (b)			130,000		126,346
Ohio - 0.19%
Buckeye Tobacco Settlement Financing Authority
5.875% due 06/01/2047			1,700,000		1,247,868
Puerto Rico - 0.00%
Puerto Rico Sales Tax Financing Corp.
zero coupon due 08/01/2054			500,000		27,010
TOTAL MUNICIPAL BONDS (Cost $6,309,445)				$	5,383,009
COLLATERALIZED MORTGAGE
OBLIGATIONS - 12.69%
Australia - 1.24%
Crusade Global Trust, Series 2004-2, Class A2
1.001% due 11/19/2037 (b)	EUR		956,565		1,271,379
Puma Finance, Ltd., Series 2004-P10, Class BA
3.43% due 07/12/2036 (b)	AUD		466,374		382,211
Puma Finance, Ltd., Series 2005-P11, Class BA
3.3267% due 08/22/2037 (b)			399,872		324,151
Superannuation Members Home Loans Global Fund, Series 2004-7, Class A1
0.7694% due 03/09/2036 (b)		$	1,143,783		1,072,308
Swan, Series 2006-1E, Class A1
0.5387% due 05/12/2037 (b)			1,742,292		1,638,566
Swan, Series 2006-1E, Class A2
3.4367% due 05/12/2037 (b)	AUD		1,568,062		1,267,083
Torrens Trust, Series 2007-1, Class A
3.57% due 09/19/2014 (b)			2,539,673		2,045,301
					8,000,999
Ireland - 0.42%
German Residential Asset Note Distributor PLC, Series 2006-1, Class A
1.209% due 07/20/2016 (b)	EUR		1,225,000		1,320,252
Immeo Residential Finance PLC, Series 2007-2, Class A
1.437% due 12/15/2016 (b)			1,325,117		1,367,775
					2,688,027
Italy - 0.04%
Intesabci Sec. 2 SRL, Series 1, Class A2
1.114% due 08/28/2023 (b)			181,611		254,438
Netherlands - 0.45%
Atomium Mortgage Finance BV, Series 2003-I, Class A
0.748% due 07/01/2034 (b)			482,725		658,295

The accompanying notes are an integral part of the financial statements.

135

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)
		Shares or
		Principal
		Amount			Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Netherlands (continued)
Delphinus BV, Series 2001-II, Class A1
1.124% due 11/28/2031 (b)	EUR		700,720	$	980,906
Dutch Mortgage Portfolio Loans, BV, Series III, Class A
1.109% due 11/20/2035 (b)			954,935		1,285,877
					2,925,078
Spain - 0.07%
Bancaja Fondo de Titulizacion de Activos, Series 2005-8, Class A
1.037% due 10/25/2037 (b)			462,958		477,327
United States - 10.47%
Adjustable Rate Mortgage Trust, Series 2005-5, Class 2A1
5.1598% due 09/25/2035 (b)		$	152,032		109,540
American Home Mortgage Investment Trust, Series 2007-1, Class GA2
0.5056% due 05/25/2047 (b)			439,935		101,406
American Home Mortgage Investment Trust, Series 2004-3, Class 5A
4.29% due 10/25/2034 (b)			459,115		326,641
Banc of America Funding Corp., Series 2006-A, Class 1A1
4.5747% due 02/20/2036 (b)			1,599,829		1,380,165
Banc of America Funding Corp., Series 2006-J, Class 4A1
6.0932% due 01/20/2047 (b)			223,661		145,672
BCAP LLC Trust, Series 2006-AA2, Class A1
0.4356% due 01/25/2037 (b)			2,565,634		1,148,881
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-5, Class 1A2
3.7394% due 08/25/2033 (b)			101,154		95,500
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-7, Class 6A
4.6489% due 10/25/2033 (b)			224,190		212,156
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-9, Class 2A1
5.1586% due 02/25/2034 (b)			29,978		24,766
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-2, Class 22A
4.1763% due 05/25/2034 (b)			392,191		346,085
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-2, Class 23A
4.6301% due 05/25/2034 (b)			182,933		152,419
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A1
2.90% due 03/25/2035 (b)			2,255,233		1,975,901
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A2
2.2156% due 03/25/2035 (b)			627,473		545,518
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-5, Class A1
2.49% due 08/25/2035 (b)			1,244,961		1,074,442
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-5, Class A2
4.55% due 08/25/2035 (b)			1,384,442		1,197,896
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-9, Class A1
4.625% due 10/25/2035 (b)			2,842,747		2,421,483
Bear Stearns Alt-A Trust, Series 2005-7, Class 22A1
5.4901% due 09/25/2036 (b)			1,972,965		1,360,724
Bear Stearns Alt-A Trust, Series 2005-9, Class 24A1
5.507% due 11/25/2035 (b)			1,024,711		594,175
Bear Stearns Alt-A Trust, Series 2006-8, Class 3A1
0.4256% due 02/25/2034 (b)			95,639		63,500
Bear Stearns Alt-A Trust, Series 2006-6, Class 31A1
5.6753% due 11/25/2036 (b)			2,331,386		1,429,978
Bear Stearns Alt-A Trust, Series 2006-6, Class 32A1
5.6718% due 10/25/2036 (b)			1,759,319		1,109,113
Bear Stearns Structured Products, Inc., Series 2007-R6, Class 1A1
5.6425% due 01/26/2036 (b)			1,053,167		616,109
Bella Vista Mortgage Trust, Series 2005-2, Class 2A1
0.5225% due 05/20/2045 (b)			768,395		328,951
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class 1A1
2.85% due 12/25/2035 (b)			400,725		342,111
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class A2A
4.70% due 12/25/2035			2,017,709		1,699,665
Citigroup Mortgage Loan Trust, Inc., Series 2005-12, Class 2A1
1.0656% due 08/25/2035 (b)			1,131,779		703,171
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A1
4.7475% due 08/25/2035 (b)			711,598		640,278
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A2
4.2475% due 08/25/2035 (b)			828,014		701,239
Commercial Mortgage Pass Through Certificates, Series 2006-CN2A, Class A2FL
0.4956% due 02/05/2019 (b)(f)			2,600,000		1,927,597
Countrywide Alternative Loan Trust, Series 2005-21CB, Class A3
5.25% due 06/25/2035			244,789		205,758
Countrywide Alternative Loan Trust, Series 2005-56, Class 2A2
3.0908% due 11/25/2035 (b)			118,217		57,977
Countrywide Alternative Loan Trust, Series 2005-56, Class 2A3
2.5508% due 11/25/2035 (b)			118,136		57,187
Countrywide Alternative Loan Trust, Series 2006-OA19, Class A1
0.4525% due 02/20/2047 (b)			2,275,228		1,137,086
Countrywide Alternative Loan Trust, Series 2007-11T1, Class A12
0.6156% due 05/25/2037 (b)			530,109		252,668
Countrywide Alternative Loan Trust, Series 2007-16CB, Class 5A1
6.25% due 08/25/2037			249,211		127,213
Countrywide Alternative Loan Trust, Series 2007-7T2, Class A9
6.00% due 04/25/2037			377,936		253,371
Countrywide Alternative Loan Trust, Series 2007-OA7, Class A1A
0.4456% due 05/25/2047 (b)			2,344,467		1,068,826

The accompanying notes are an integral part of the financial statements.

136

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
United States (continued)
Countrywide Alternative Loan Trust, Series 2005-11CB, Class 2A8
4.50% due 06/25/2035	$	92,127	$	90,654
Countrywide Alternative Loan Trust, Series 2005-81, Class A1
0.5456% due 02/25/2037 (b)		4,231,622		2,136,873
Countrywide Alternative Loan Trust, Series 2006-OA1, Class 2A1
0.4825% due 03/20/2046 (b)		1,419,388		655,759
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-12, Class 11A1
3.9971% due 08/25/2034 (b)		88,653		58,106
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-22, Class A3
4.7647% due 11/25/2034 (b)		308,637		258,369
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-R2, Class 1AF1
0.6056% due 06/25/2035 (b)(f)		137,328		93,339
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-HYB9, Class 5A1
5.25% due 02/20/2036 (b)		612,836		305,106
Countrywide Home Loans, Series 2004-12, Class 12A1
3.9886% due 08/25/2034 (b)		911,139		687,631
Countrywide Home Loans, Series 2004-25, Class 1A1
0.5956% due 02/25/2035 (b)		267,544		148,004
Countrywide Home Loans, Series 2004-25, Class 2A1
0.6056% due 02/25/2035 (b)		320,630		178,803
Countrywide Home Loans, Series 2005-HYB9, Class 3A2A
5.25% due 11/20/2025 (b)		667,159		449,673
CS First Boston Mortgage Securities Corp., Series 2003-AR18, Class 2A3
3.8451% due 07/25/2033 (b)		29,768		27,292
CS First Boston Mortgage Securities Corp., Series 2003-AR20, Class 2A1
3.8873% due 08/25/2033 (b)		339,026		313,336
Federal Home Loan Mortgage Corp., Series T-63, Class 1A1
2.41% due 02/25/2045 (b)		290,438		275,596
Federal Home Loan Mortgage Corp., Series 2004-2895, Class F
0.6228% due 06/15/2031 (b)		468,241		466,511
Federal Home Loan Mortgage Corp., Series 2006-3117, Class PN
5.00% due 11/15/2021		1,332		1,330
Federal National Mortgage Association, Series 2003-W6, Class F
0.6156% due 09/25/2042 (b)		627,124		587,794
Federal National Mortgage Association, Series 2005-120, Class NF
0.3656% due 01/25/2021 (b)		314,902		313,216
Federal National Mortgage Association, Series 2006-15, Class FC
0.3956% due 03/25/2036 (b)		944,805		747,483
Federal National Mortgage Association, Series 2006-16, Class FC
0.5656% due 03/25/2036 (b)		2,039,830		2,010,898
Federal National Mortgage Association, Series 2006-5, Class 3A2
4.2413% due 02/25/2036 (b)		823,268		808,541
First Horizon Asset Securities, Inc., Series 2003-AR2, Class 2A1
3.1475% due 07/25/2033 (b)		86,531		81,384
First Horizon Asset Securities, Inc., Series 2003-AR4, Class 2A1
4.7402% due 12/25/2033 (b)		178,055		161,738
First Horizon Asset Securities, Inc., Series 2005-AR3, Class 2A1
5.3652% due 08/25/2035 (b)		144,076		120,012
First Republic Mortgage Loan Trust, Series 2001-FRB1, Class A
0.6228% due 11/15/2031 (b)		376,395		314,122
GMAC Mortgage Corp. Loan Trust, Series 2004-AR1, Class 22A
4.7493% due 06/25/2034 (b)		22,960		14,039
Greenpoint Mortgage Funding Trust, Series 2006-AR6, Class A1A
0.3456% due 10/25/2046 (b)		1,337,073		1,138,489
Greenpoint Mortgage Pass-Through Certificates, Series 2003-1, Class A1
4.4664% due 10/25/2033 (b)		21,523		17,729
GS Mortgage Securities Corp., Series 2003-1, Class A2
0.9656% due 01/25/2032 (b)		260,976		173,081
GSR Mortgage Loan Trust, Series 2003-1, Class A2
4.5261% due 03/25/2033 (b)		180,473		174,177
Harborview Mortgage Loan Trust, Series 2003-1, Class A
4.3027% due 05/19/2033 (b)		292,674		270,042
Harborview Mortgage Loan Trust, Series 2005-4, Class 3A1
5.1396% due 07/19/2035 (b)		47,027		29,676
Harborview Mortgage Loan Trust, Series 2006-1, Class 2A1A
0.5188% due 03/19/2037 (b)		1,463,905		710,619
Harborview Mortgage Loan Trust, Series 2006-12, Class 2A11
0.3688% due 01/19/2038 (b)		604,120		571,081
Harborview Mortgage Loan Trust, Series 2006-12, Class 2A2A
0.4688% due 01/19/2038		2,180,073		1,051,618
Impac Secured Assets Corp., Series 2006-4, Class A2A
0.3456% due 01/25/2037 (b)		491,755		353,343
Indymac Index Mortgage Loan Trust, Series 2004-AR11, Class 2A
4.9662% due 12/25/2034 (b)		89,003		53,724
JPMorgan Alternative Loan Trust, Series 2006-A6, Class 2A1
5.50% due 11/25/2036 (b)		615,495		505,762
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2006-CB17, Class A4
5.429% due 12/12/2043		1,100,000		988,750

The accompanying notes are an integral part of the financial statements.

137

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)
	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
United States (continued)
JPMorgan Mortgage Trust, Series 2003-A2, Class 3A1
4.3775% due 11/25/2033 (b)	$	253,410	$	236,033
JPMorgan Mortgage Trust, Series 2005-A1, Class 6T1
5.0156% due 02/25/2035 (b)		444,263		425,454
Lehman Brothers Floating Rate Commercial Mortgage Trust, Series 2006-LLFA, Class A1
0.3528% due 09/15/2021 (b)(f)		326,431		291,358
Mellon Residential Funding Corp., Series 2000-TBC3, Class A1
0.7128% due 12/15/2030 (b)		967,784		827,234
Merrill Lynch Mortgage Investors, Inc., Series 2003-A2, Class 1A1
4.4412% due 02/25/2033 (b)		127,046		110,861
Merrill Lynch Mortgage Investors, Inc., Series 2005-2, Class 1A
4.25% due 10/25/2035 (b)		1,150,191		986,730
Merrill Lynch Mortgage Investors, Inc., Series 2005-A8, Class A3A2
0.5156% due 08/25/2036 (b)		194,993		106,859
Merrill Lynch Mortgage Investors, Inc., Series 2003-C, Class A1
0.5956% due 06/25/2028 (b)		622,920		534,641
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-5, Class A4
5.378% due 08/12/2048		900,000		658,761
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-8, Class A3
6.1555% due 08/12/2049 (b)		2,000,000		1,529,111
Puma Finance, Ltd., Series 2006-G5, Class A1
0.4888% due 02/21/2038 (b)		1,323,280		1,162,222
Residential Accredit Loans, Inc., Series 2006-QO6, Class A1
0.4456% due 06/25/2046 (b)		2,523,569		1,155,809
Residential Accredit Loans, Inc., Series 2007-QO2, Class A1
0.4156% due 02/25/2047 (b)		571,045		237,370
Residential Accredit Loans, Inc., Series 2006-QO3, Class A1
0.4756% due 04/25/2046 (b)		1,564,171		713,297
Residential Asset Securitization Trust, Series 2005-A15, Class 5A1
5.75% due 02/25/2036		337,861		216,400
Residential Asset Securitization Trust, Series 2006-R1, Class A2
0.6656% due 01/25/2046 (b)		675,712		265,335
Residential Funding Mortgage Securities I, Series 2005-SA4, Class 1A21
5.2039% due 09/25/2035 (b)		192,104		128,403
Sequoia Mortgage Trust, Series 5, Class A
0.6288% due 10/19/2026 (b)		244,384		192,338
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A1
3.7781% due 02/25/2034 (b)		172,906		144,775
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A2
3.7781% due 02/25/2034 (b)		950,983		782,116
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-12, Class 7A1
5.21% due 09/25/2034 (b)		757,135		653,974
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-19, Class 2A1
2.451% due 01/25/2035 (b)		821,531		368,384
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-4, Class 3A2
3.7595% due 04/25/2034 (b)		386,997		332,479
Structured Asset Mortgage Investments, Inc., Series 2006-AR3, Class 12A1
0.4856% due 05/25/2036 (b)		1,911,423		894,731
Thornburg Mortgage Securities Trust, Series 2006-5, Class A1
0.3856% due 08/25/2011 (b)		1,672,537		1,573,155
WaMu Mortgage Pass Through Certificates, Series 2003-AR9, Class 1A5
3.8048% due 09/25/2033 (b)		36,994		36,833
WaMu Mortgage Pass Through Certificates, Series 2003-AR9, Class 1A6
3.8048% due 09/25/2033 (b)		4,000,000		3,532,376
WaMu Mortgage Pass Through Certificates, Series 2006-AR19, Class 1A
1.95% due 01/25/2047 (b)		637,901		259,721
WaMu Mortgage Pass-Through Certificates, Series 2002-AR17, Class 1A
2.2508% due 11/25/2042 (b)		412,585		255,990
WaMu Mortgage Pass-Through Certificates, Series 2003-AR5, Class A7
2.91% due 06/25/2033 (b)		117,549		100,646
WaMu Mortgage Pass-Through Certificates, Series 2005-AR13, Class A1A1
0.5556% due 10/25/2045 (b)		190,972		109,608
WaMu Mortgage Pass-Through Certificates, Series 2005-AR2, Class 2A1A
0.5756% due 01/25/2045 (b)		323,340		202,849
WaMu Mortgage Pass-Through Certificates, Series 2005-AR6, Class 2A1A
0.4956% due 04/25/2045 (b)		559,276		351,038
WaMu Mortgage Pass-Through Certificates, Series 2006-AR17, Class 1A1A
1.8608% due 12/25/2046 (b)		475,387		227,858
WaMu Mortgage Pass-Through Certificates, Series 2006-AR3, Class A1A
2.0508% due 02/25/2046 (b)		1,069,250		646,082
WaMu Mortgage Pass-Through Certificates, Series 2003-R1, Class A1
0.8056% due 12/25/2027 (b)		957,956		711,233
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2006-AR5, Class 3A
1.9908% due 07/25/2046 (b)		440,751		152,362
Wells Fargo Mortgage Backed Securities Trust, Series 2004-S, Class A1
3.3791% due 09/25/2034 (b)		1,638,218		1,554,335

The accompanying notes are an integral part of the financial statements.

138

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)

		Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
United States (continued)
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR2, Class 2A1
4.9485% due 03/25/2036 (b)		$	1,997,089	$	1,629,046
					67,576,675
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $107,841,271)				$	81,922,544
ASSET BACKED SECURITIES - 2.95%
Canada - 0.14%
Ford Auto Securitization Trust, Series 2009-R1A, Class A2
4.817% due 10/15/2012	CAD		1,000,000		894,572
Ireland - 0.48%
Cars Alliance Funding PLC, Series 2007-1, Class A
1.168% due 10/08/2023 (b)	EUR		1,700,000		2,236,300
SC Germany Auto, Series 2007-1, Class A
0.591% due 08/11/2015 (b)			602,411		838,306
					3,074,606
Italy - 0.16%
Locat Securitisation Vehicle Srl, Series 2006-4, Class A2
1.443% due 12/12/2028 (b)			806,688		1,041,980
United States - 2.17%
Access Group, Inc., Series 2008-1, Class A
1.8038% due 10/27/2025 (b)		$	2,600,257		2,626,050
Countrywide Asset-Backed Certificates, Series 2007-2, Class 2A1
0.3156% due 02/25/2037 (b)			522,368		458,675
Countrywide Asset-Backed Certificates, Series 2006-25, Class 2A1
0.3356% due 06/25/2047 (b)			934,402		898,533
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF15, Class A3
0.3156% due 11/25/2036 (b)			680,299		669,060
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF18, Class A2A
0.3356% due 12/25/2037 (b)			381,798		365,251
Ford Credit Auto Owner Trust, Series 2008-C, Class A2B
1.1728% due 01/15/2011 (b)			747,608		748,734
Franklin Auto Trust, Series 2008-A, Class A2
1.2725% due 10/20/2011 (b)			796,747		798,221
HSI Asset Securitization Corp. Trust, Series 2006-HE2, Class 2A1
0.3156% due 12/25/2036 (b)			741,537		491,810
JPMorgan Mortgage Acquisition Corp., Series 2006-WMC3, Class A2
0.3156% due 08/25/2036 (b)			146,861		142,338
Long Beach Mortgage Loan Trust, Series 2004-4, Class 1A1
0.5456% due 10/25/2034 (b)			134,514		101,363
Mid-State Trust, Series 1995-4, Class A
8.33% due 04/01/2030			1,344,257		1,215,942
Nelnet Student Loan Trust, Series 2008-4, Class A1
1.0338% due 04/27/2015 (b)			1,090,556		1,091,795
Nomura Asset Acceptance Corp., Series 2006-S1, Class A1
0.4056% due 01/25/2036 (b)(f)			18,254		16,695
Residential Asset Mortgage Products, Inc., Series 2006-RZ5, Class A1A
0.3656% due 08/25/2046 (b)			399,598		384,723
Residential Asset Securities Corp., Series 2006-KS9, Class AI1
0.3356% due 11/25/2036 (b)			135,777		134,609
SACO I, Inc., Series 2005-10, Class 1A
0.5256% due 11/25/2033 (b)			417,562		70,270
SLM Student Loan Trust, Series 2003-6, Class A4
0.8294% due 12/17/2018 (b)			431,154		426,463
Soundview Home Equity Loan Trust, Series 2006-EQ2, Class A1
0.3456% due 01/25/2037 (b)			150,881		148,228
Structured Asset Securities Corp., Series 2006-11, Class A1
4.3997% due 10/25/2035 (b)(f)			618,175		412,396
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4
5.572% due 10/15/2048 (b)			3,000,000		2,549,469
Wells Fargo Home Equity Trust, Series 2005-2, Class AI1A
0.4956% due 10/25/2035 (b)(f)			306,220		291,775
					14,042,400
TOTAL ASSET BACKED SECURITIES (Cost $20,985,810)				$	19,053,558
SUPRANATIONAL OBLIGATIONS - 0.28%
Australia - 0.28%
European Investment Bank
5.375% due 05/20/2014	AUD		2,200,000		1,812,136
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $1,728,975)				$	1,812,136
PREFERRED STOCKS - 0.18%
United States - 0.18%
SLM Corp. (k)			6,200		74,400
State Street Capital Trust IV (k)			1,800,000		1,124,055
					1,198,455
TOTAL PREFERRED STOCKS (Cost $1,869,750)				$	1,198,455
TERM LOANS - 0.47%
United States - 0.47%
Chrysler Financial
4.29% due 08/03/2012 (b)			2,290,357		2,164,388
Ford Motor Company, Term B
3.4957% due 11/29/2013 (b)			973,810		843,806
					3,008,194
TOTAL TERM LOANS (Cost $3,208,884)				$	3,008,194

The accompanying notes are an integral part of the financial statements.

139

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Bond Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 4.88%
JPMorgan Chase & Company Tri-Party Repurchase Agreement dated 08/31/2009 at 0.21% to be repurchased at $30,600,179 on 09/01/2009, collateralized by $28,376,000 Federal National Mortgage Association, 4.625% due 10/15/2014 (valued at $31,316,889, including interest)	$	30,600,000	$	30,600,000
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $931,002 on 09/01/2009, collateralized by $950,000 Federal National Mortgage Association, zero coupon due 12/30/2009 (valued at $950,000, including interest)		931,000		931,000
TOTAL REPURCHASE AGREEMENTS (Cost $31,531,000)			$	31,531,000
SHORT TERM INVESTMENTS - 0.42%
U.S. Treasury Bills
0.26% due 02/25/2010 ***	$	2,689,000	$	2,685,577
TOTAL SHORT TERM INVESTMENTS (Cost $2,685,577)			$	2,685,577
Total Investments (Global Bond Fund) (Cost $675,979,015) - 100.76%			$	650,478,638
Other assets and liabilities, net - (0.76)%				(4,932,664	)
TOTAL NET ASSETS - 100.00%			$	645,545,974

Schedule of Securities Sold Short

	Shares or Principal Amount		Value
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 54.74%
Federal National Mortgage Association
5.50%, TBA **	$	28,000,000	$	28,947,264
6.00%, TBA **		19,800,000	$	20,775,772
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Proceeds $49,545,850)			$	49,723,036
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 45.26%
Government National Mortgage Association
6.00%, TBA **		39,000,000	$	41,108,438
TOTAL GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION (Proceeds $40,902,734)			$	41,108,438
Total Securities Sold Short (Global Bond Fund) (Proceeds $90,448,584)			$	90,831,474

Global Infrastructure Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 98.74%
Australia - 4.06%
Macquarie Infrastructure Group		7,000	$	7,864
SP Ausnet		55,000		35,706
Transurban Group, Ltd.		12,000		40,957
				84,527
Bermuda - 0.11%
Frontline, Ltd.		100		2,227
Brazil - 4.55%
Brasil Telecom SA, ADR *		991		21,386
Cia Energetica de Minas Gerais, ADR		1,596		23,317
Companhia de Saneamento Basico do Estado de Sao Paulo, ADR *		516		18,886
Vivo Participacoes SA		1,365		31,067
				94,656
Canada - 12.31%
ATCO, Ltd., Class I		320		12,496
Canadian Utilities, Ltd.		400		13,687
Enbridge, Inc.		1,800		66,978
SNC-Lavalin Group, Inc.		1,000		42,330
The Churchill Corp. *		2,300		31,535
TransCanada Corp.		3,000		89,040
				256,066
China - 1.05%
China Telecom Corp., Ltd. ADR		424		21,891
France - 2.42%
France Telecom SA, SADR		616		15,856
GDF Suez		816		34,458
				50,314
Germany - 5.40%
E.ON AG, ADR		491		20,794
Fraport AG, ADR		300		15,176
Freenet AG *		2,527		33,868
RWE AG		459		42,579
				112,417
Italy - 1.69%
Enel SpA		4,104		24,177
Terna SpA		3,000		11,059
				35,236
Japan - 4.59%
Kamigumi Company, Ltd.		1,000		8,421
KDDI Corp.		3		17,046
Nippon Telegraph & Telephone Corp., ADR		2,207		48,996
NTT DoCoMo, Inc., SADR		1,365		20,980
				95,443
Netherlands - 2.38%
Koninklijke KPN NV, SADR		1,124		17,253
Koninklijke Vopak NV		500		32,192
				49,445
Portugal - 4.32%
Electricidade de Portugal SA		13,317		57,615
Portugal Telecom SGPS SA, ADR		3,112		32,178
				89,793

The accompanying notes are an integral part of the financial statements.

140

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Infrastructure Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Spain - 11.78%
Abertis Infraestructuras SA		2,520	$	54,907
Enagas		300		5,927
Gas Natural SDG SA		1,447		30,457
Iberdrola SA		4,444		41,257
Telefonica SA, SADR		1,484		112,457
				245,005
Sweden - 1.40%
Tele2 AB, Series B		2,090		29,102
Switzerland - 1.85%
Swisscom AG		1,116		38,457
Taiwan - 0.23%
Chunghwa Telecom Company, Ltd., ADR		284		4,853
Turkey - 0.56%
Turkcell Iletisim Hizmetleri AS, ADR		726		11,696
United Kingdom - 3.63%
National Grid PLC, SADR		399		19,188
Vodafone Group PLC, SADR		2,593		56,320
				75,508
United States - 36.41%
Alliant Energy Corp.		871		22,942
Apollo Group, Inc., Class A *		800		51,856
AT&T, Inc.		2,807		73,122
CenturyTel, Inc.		996		32,101
DeVry, Inc.		700		35,770
DTE Energy Company		1,421		49,423
Edison International		1,245		41,596
El Paso Corp.		3,500		32,305
Energen Corp.		682		28,637
Entergy Corp.		241		19,039
Exelon Corp.		516		25,810
FirstEnergy Corp.		323		14,577
FPL Group, Inc.		500		28,090
ITT Educational Services, Inc. *		200		20,998
Kinder Morgan Management LLC *		642		30,386
OGE Energy Corp.		387		12,105
ONEOK, Inc.		687		23,276
Pinnacle West Capital Corp.		245		8,063
Qwest Communications International, Inc.		5,650		20,284
Spectra Energy Corp.		3,200		60,224
Suburban Propane Partners, LP		509		20,650
Telephone & Data Systems, Inc.		152		4,008
USA Mobility, Inc. *		440		5,601
Verizon Communications, Inc.		1,475		45,784
Williams Companies, Inc.		3,100		50,964
				757,611
TOTAL COMMON STOCKS (Cost $1,947,205)			$	2,054,247
Total Investments (Global Infrastructure Fund) (Cost $1,947,205) - - 98.74%			$	2,054,247
Other assets and liabilities, net - 1.26%				26,295
TOTAL NET ASSETS - 100.00%			$	2,080,542

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Electrical Utilities	22.46	%
Gas & Pipeline Utilities	19.72	%
Telecommunications Equipment & Services	15.52	%
Telephone	11.62	%
Cellular Communications	6.23	%

Global Real Estate Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 101.56%
Australia - 11.55%
CFS Gandel Retail Trust		1,199,179	$	1,919,576
Charter Hall Group, Ltd		157,660		70,538
Dexus Property Group, REIT		3,009,259		1,888,437
General Property Trust, Ltd.		3,865,445		2,002,811
ING Industrial Fund		162,663		69,323
ING Office Fund		1,665,144		766,234
Macquarie CountryWide Trust		1,190,195		632,740
Macquarie Goodman Group, Ltd.		4,298,277		2,248,331
Macquarie Leisure Trust Group		157,837		188,068
Macquarie Office Trust		3,406,601		776,542
Mirvac Group, Ltd.		1,866,225		2,342,323
Stockland Company, Ltd.		1,418,517		4,512,804
Westfield Group		1,308,531		13,932,584
				31,350,311
Bulgaria - 0.00%
BGP Holdings PLC *		4,606,148		7
Canada - 2.97%
Allied Properties Real Estate Investment Trust		62,700		995,984
Boardwalk Real Estate Investment Trust		63,800		2,138,808
Brookfield Properties Corp. REIT		101,200		1,110,164
First Capital Realty, Inc.		28,500		496,716
RioCan Real Estate Investment Trust (a)		215,750		3,320,747
				8,062,419
Finland - 0.36%
Technopolis Oyj		185,000		980,940
France - 4.16%
Fonciere Des Regions (a)		7,999		837,630
Klepierre SA (a)		30,000		1,128,178

The accompanying notes are an integral part of the financial statements.

141

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Real Estate Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
France (continued)
Unibail-Rodamco SE, REIT		47,000	$	9,318,342
				11,284,150
Guernsey - 0.18%
Camper & Nicholsons Marina Investments, Ltd. *		1,250,000		498,560
Hong Kong - 17.55%
China Overseas Land & Investment, Ltd.		2,719,452		5,493,359
China Resources Land, Ltd.		1,479,000		3,101,479
Hang Lung Properties, Ltd.		1,028,592		3,205,344
Henderson Land Development Company, Ltd.		623,000		3,647,691
Kerry Properties, Ltd.		804,303		3,819,351
Link, REIT		1,094,000		2,409,481
New World China Land, Ltd.		1,483,200		707,746
New World Development Company, Ltd.		1,698,863		3,425,638
Shimao Property Holdings, Ltd., GDR		1,125,500		1,677,543
Sino Land Company, Ltd.		1,236,000		2,119,612
Sino-Ocean Land Holdings, Ltd.		801,500		731,821
Sun Hung Kai Properties, Ltd.		1,283,173		17,293,224
				47,632,289
Indonesia - 0.14%
Ciputra Development Tbk PT *		5,000,000		379,279
Japan - 13.62%
Aeon Mall Company, Ltd.		70,700		1,658,943
Daikyo, Inc. (a)		150,000		386,309
Japan Real Estate Investment Corp., REIT		171		1,392,292
Japan Retail Fund Investment Corp., REIT		210		1,118,273
Kenedix Realty Investment Corp. *		157		587,009
Kenedix, Inc.		500		238,679
Mitsubishi Estate Company, Ltd.		596,000		9,818,346
Mitsui Fudosan Company, Ltd.		529,000		9,923,792
MORI TRUST Sogo Reit, Inc.		97		781,409
Nippon Building Fund, Inc., REIT		238		2,093,808
Nomura Real Estate Office Fund, Inc.		100		692,793
Sumitomo Realty &
Development Company, Ltd.		259,000		5,409,761
Tokyo Tatemono Company, Ltd.		233,000		1,366,465
Tokyu REIT, Inc.		70		395,498
Top REIT, Inc.		130		539,886
United Urban Investment Corp.		100		556,945
				36,960,208
Netherlands - 1.50%
Corio NV		40,000		2,447,841
NR Nordic and Russia Properties, Ltd.		1,604,158		436,524
Wereldhave NV		12,000		1,177,082
				4,061,447
Philippines - 0.24%
Megaworld Corp.		20,000,000		656,288
Singapore - 5.71%
Ascendas, REIT *		2,464,088		2,818,883
Capitaland, Ltd.		2,393,500		6,153,319
CDL Hospitality Trusts, REIT *		418,000		409,022
Hong Kong Land Holdings, Ltd.		1,157,000		4,704,596
Wing Tai Holdings, Ltd.		1,159,000		1,397,226
				15,483,046
United Kingdom - 9.04%
Big Yellow Group PLC *		160,000		1,001,700
British Land Company PLC		410,426		3,212,731
Capital & Regional PLC - Subscription Shares *		1,800,000		476,176
Capital & Regional PLC		297,071		194,577
Derwent Valley Holdings PLC		70,000		1,304,947
Equest Balkan Properties PLC *		647,078		150,111
Great Portland Estates PLC (a)		425,000		1,806,038
Hammerson PLC		300,000		1,964,215
Hansteen Holdings PLC		400,000		565,266
Helical Bar PLC		170,000		1,018,082
Land Securities Group PLC		230,000		2,294,262
London & Stamford Property, Ltd.		400,000		838,110
Max Property Group PLC *		400,000		836,282
Minerva PLC *		395,505		206,981
Safestore Holdings, Ltd.		500,000		1,059,911
Segro PLC		437,252		2,538,376
Shaftesbury PLC		100,000		613,275
South African Property Opportunities PLC *		1,400,000		1,435,853
St. Modwen Properties PLC *		150,000		597,348
Terrace Hill Group PLC		2,000,000		685,657
Unite Group PLC		450,000		1,737,798
				24,537,696
United States - 34.54%
AMB Property Corp., REIT		120,300		2,746,449
American Campus Communities, Inc., REIT		91,850		2,389,018
Apartment Investment & Management Company, Class A, REIT		111,650		1,358,780
Avalon Bay Communities, Inc., REIT (a)		59,878		3,857,940
BioMed Realty Trust, Inc., REIT		128,250		1,728,810
Boston Properties, Inc., REIT (a)		114,750		6,951,555
BRE Properties, Inc., Class A, REIT		70,550		1,994,448
Cogdell Spencer, Inc., REIT		91,550		413,806
DiamondRock Hospitality Company, REIT		130,800		895,980
Digital Realty Trust, Inc., REIT (a)		93,650		4,081,267
Duke Realty Corp., REIT		193,400		2,227,968
Education Realty Trust, Inc., REIT		106,410		622,499
Equity Lifestyle Properties, Inc., REIT		1,000		40,250
Equity Residential, REIT		124,200		3,391,902
Government Properties Income Trust, REIT *		26,650		568,445
HCP, Inc., REIT		175,600		5,001,088
Health Care, Inc., REIT		38,400		1,640,064
Host Hotels & Resorts, Inc., REIT		216,810		2,161,596
Kilroy Realty Corp., REIT		53,500		1,482,485
Kimco Realty Corp., REIT		234,000		2,936,700
LaSalle Hotel Properties, REIT		2,650		43,857
LTC Properties, Inc., REIT		16,550		421,528
Nationwide Health Properties, Inc., REIT		114,518		3,650,834
NRDC Acquisition Corp. *		14,500		143,260
Post Properties, Inc., REIT		102,600		1,748,304
ProLogis, REIT (a)		263,650		2,931,788
PS Business Parks, Inc., REIT		18,950		1,003,023
Public Storage, Inc., REIT		96,800		6,829,240
Regency Centers Corp., REIT		161,230		5,409,267
Senior Housing Properties Trust, REIT		184,863		3,708,352
Simon Property Group, Inc., REIT		180,448		11,480,102
SL Green Realty Corp., REIT		40,450		1,427,481

The accompanying notes are an integral part of the financial statements.

142

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Global Real Estate Fund (continued)

		Shares or Principal Amount		Value
COMMON STOCKS (continued)
United States (continued)
Sunstone Hotel Investors, Inc., REIT			180,000	$	1,126,800
The Macerich Company, REIT (a)			19,778		566,837
Ventas, Inc., REIT			64,000		2,509,440
Vornado Realty Trust, REIT (a)			73,553		4,230,769
					93,721,932
TOTAL COMMON STOCKS (Cost $203,201,091)				$	275,608,572
INVESTMENT COMPANIES - 0.25%
Cayman Islands - 0.00%
ARGO Real Estate Opportunities Fund, Ltd. *			147,790		4,237
Luxembourg - 0.25%
ProLogis European Properties *			121,072		674,224
TOTAL INVESTMENT COMPANIES (Cost $494,659)				$	678,461
WARRANTS - 0.00%
Canada - 0.00%
First Capital Realty, Inc. (Expiration date 10/29/2010; strike price CAD 17.53) *			1,172		1,991
TOTAL WARRANTS (Cost $0)				$	1,991
CONVERTIBLE BONDS - 0.05%
Germany - 0.05%
Colonia Real Estate AG, Series COLO
1.875% due 12/07/2011	EUR		167,300		136,717
TOTAL CONVERTIBLE BONDS (Cost $222,952)				$	136,717
SHORT TERM INVESTMENTS - 6.60%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)			1,789,501	$	17,915,228
TOTAL SHORT TERM INVESTMENTS (Cost $17,905,176)				$	17,915,228
Total Investments (Global Real Estate Fund) (Cost $221,823,878) - - 108.46%				$	294,340,969
Other assets and liabilities, net - (8.46)%					(22,958,681	)
TOTAL NET ASSETS - 100.00%				$	271,382,288

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Real Estate	99.26	%
Building Materials & Construction	1.26	%
Holdings Companies/Conglomerates	0.57	%
Investment Companies	0.25	%
Retail Grocery	0.23	%

Global Timber Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 99.84%
Australia - 8.28%
Gunns, Ltd.		185,477	$	189,008
Brazil - 8.53%
Aracruz Celulose SA, SADR *		1,194		25,217
Suzano Papel e Celulose SA *		8,248		77,898
Votorantim Celulose e Papel SA, SADR *		5,792		91,572
				194,687
Canada - 18.10%
Canfor Corp. *		10,544		52,588
Sino-Forest Corp. *		23,428		291,044
West Fraser Timber Company, Ltd.		2,991		69,669
				413,301
Hong Kong - 1.19%
Shandong Chenming Paper Holdings, Ltd.		39,297		27,237
Japan - 1.11%
Hokuetsu Paper Mills, Ltd.		4,667		25,318
Sweden - 6.63%
Holmen AB, Series B		845		24,033
Svenska Cellulosa AB, B Shares		9,748		127,442
				151,475
United States - 56.00%
Bemis Company, Inc.		2,927		77,829
Clearwater Paper Corp. *		1,230		56,765
Deltic Timber Corp.		1,176		60,070
International Paper Company		4,914		112,776
Kimberly-Clark Corp.		1,367		82,649
MeadWestvaco Corp.		1,051		23,069
Packaging Corp. of America		2,330		47,439
Plum Creek Timber Company, Inc.		3,381		102,410
Potlatch Corp.		3,145		91,520
Rayonier, Inc.		5,905		253,620
Rock-Tenn Company, Class A		1,586		81,346
Schweitzer Mauduit International, Inc.		1,783		87,688
Sonoco Products Company		3,976		103,137
Wausau-Mosinee Paper Corp. *		1,581		15,272
Weyerhaeuser Company		2,218		82,931
				1,278,521
TOTAL COMMON STOCKS (Cost $1,805,237)			$	2,279,547
Total Investments (Global Timber Fund) (Cost $1,805,237) - 99.84%			$	2,279,547
Other assets and liabilities, net - 0.16%				3,636
TOTAL NET ASSETS - 100.00%			$	2,283,183

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Forest Products	43.75	%
Paper	38.62	%
Containers & Glass	10.00	%
Tobacco	3.84	%
Cosmetics & Toiletries	3.62	%

The accompanying notes are an integral part of the financial statements.

143

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Income Fund

	Shares or Principal Amount		Value
CORPORATE BONDS - 64.24%
Advertising - 0.53%
R.H. Donnelley Corp.
6.875% due 01/15/2013 ^	$	385,000	$	22,619
8.875% due 10/15/2017 ^		7,640,000		448,850
R.H. Donnelley Corp., Series A-1
6.875% due 01/15/2013 ^		2,890,000		169,787
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016 ^		8,686,000		510,302
Vertis, Inc.
13.50% due 04/01/2014		903,775		4,519
Vertis, Inc., Series A
18.50% due 10/01/2012		3,369,935		1,061,530
				2,217,607
Air Travel - 7.70%
Alaska Airlines, Inc., Series D
9.50% due 04/12/2012		78,468		59,244
American Airlines Pass Through Trust 2001-01, Series 01-1
7.379% due 05/23/2016		5,967,339		3,043,343
American Airlines, Inc., Series 90-K
9.93% due 06/15/2010		512,000		401,920
American Airlines, Inc., Series 91B2
10.32% due 07/30/2014 (f)		875,821		262,746
AMR Corp., MTN, Series B
10.40% due 03/10/2011		4,500,000		2,025,000
Continental Airlines, Inc.
5.00% due 06/15/2023		8,280,000		8,135,100
Delta Air Lines, Inc., Series 01-1
7.711% due 03/18/2013		6,730,000		5,922,400	��
Gol Finance
8.75% due 12/31/2049 (f)		3,470,000		2,654,550
Northwest Airlines
1.00% due 01/16/2017 ^		4,470,000		2,816
6.625% due 02/15/2023 ^		15,690,000		19,613
7.625% due 11/15/2023 ^		8,745,000		10,931
8.70% due 03/15/2049 ^		2,055,000		2,672
8.875% due 06/01/2049		6,360,000		8,268
9.875% due 03/15/2037		7,045,000		9,158
10.00% due 02/01/2049		3,115,000		4,049
United Air Lines, Inc.
12.75% due 07/15/2012		1,500,000		1,440,000
US Airways Group, Inc.
7.00% due 09/30/2020		5,920,000		4,662,000
7.25% due 05/15/2014		3,350,000		3,224,375
				31,888,185
Auto Parts - 7.06%
Allison Transmission, Inc.
11.00% due 11/01/2015 (f)		6,840,000		6,156,000
Allison Transmission, Inc., PIK
11.25% due 11/01/2015 (f)		14,175,000		11,907,000
Goodyear Tire & Rubber Company
10.50% due 05/15/2016		1,480,000		1,579,900
Tenneco Automotive, Inc.
8.625% due 11/15/2014		6,815,000		5,997,200
TRW Automotive, Inc.
7.00% due 03/15/2014 (f)		800,000		696,000
7.25% due 03/15/2017 (f)		3,500,000		2,940,000
				29,276,100
Broadcasting - 13.38%
Canadian Satellite Radio Holdings, Inc.
12.75% due 02/15/2014		6,325,000		2,182,125
12.75% due 02/14/2016 (b)		534,184		395,464
Canadian Satellite Radio Holdings, Inc., ADR
8.00% due 09/10/2014		1,700,000		621,146
Sirius XM Radio, Inc.
7.00% due 12/01/2014 (f)		17,265,000		12,236,569
9.625% due 08/01/2013		4,702,000		4,161,270
13.00% due 08/01/2014 (f)		21,680,000		20,595,971
Sirius XM Radio, Inc., Series AI
10.00% due 06/01/2011		12,885,000		12,144,113
XM Satellite Radio, Inc.
11.25% due 06/15/2013 (f)		3,000,000		3,112,500
				55,449,158
Business Services - 0.10%
MSX International UK
12.50% due 04/01/2012 (f)		1,185,000		402,900
Cable & Television - 4.48%
Adelphia Communications Corp.
7.75% due 01/15/2049 ^		3,000,000		67,500
9.875% due 03/01/2049 ^		1,965,000		44,212
10.25% due 11/01/2049 ^		985,000		22,162
Century Communications
8.375% due 12/15/2049 ^		1,000,000		0
Charter Communications Holdings I LLC
9.92% due 04/01/2014 ^		7,475,000		65,406
10.00% due 05/15/2014 ^		4,055,000		35,481
11.00% due 10/01/2015 ^		13,145,000		1,840,300
11.125% due 01/15/2014 ^		2,830,000		24,762
12.125% due 01/15/2015 ^		2,925,000		25,594
Charter Communications Holdings II LLC
10.25% due 09/15/2010 ^		2,035,000		2,261,394
10.25% due 10/01/2013 ^ (f)		5,494,000		5,748,098
10.25% due 09/15/2010 ^		4,970,000		5,522,913
Charter Communications, Inc.
12.875% due 09/15/2014 ^ (f)		2,680,000		2,907,800
Young Broadcasting, Inc.
10.00% due 03/01/2011 ^		8,135,000		895
				18,566,517
Cellular Communications - 0.64%
Digicel Group, Ltd.
8.875% due 01/15/2015 (f)		2,960,000		2,641,800
Chemicals - 1.63%
American Pacific Corp.
9.00% due 02/01/2015		7,485,000		6,755,213
Construction Materials - 0.05%
USG Corp.
9.75% due 08/01/2014 (f)		195,000		200,363
Containers & Glass - 2.12%
Graham Packaging Company
9.875% due 10/15/2014		610,000		606,950
Pliant Corp.
11.125% due 09/01/2009 ^ (a)		552,000		1,380
11.625% due 06/15/2009 ^		1,015,725		756,715
Smurfit-Stone Container Enterprises, Inc.
8.00% due 03/15/2017 ^		11,000,000		6,820,000

The accompanying notes are an integral part of the financial statements.

144

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Income Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Containers & Glass (continued)
Smurfit-Stone Container Enterprises, Inc. (continued)
8.375% due 07/01/2012 ^	$	400,000	$	251,000
US Corrugated, Inc.
10.00% due 06/12/2013		460,000		349,600
				8,785,645
Electrical Utilities - 3.18%
Texas Competitive Electric Holdings Company LLC, PIK
10.50% due 11/01/2016		4,478,500		2,619,924
Texas Competitive Electric Holdings Company LLC, Series A
10.25% due 11/01/2015		15,915,000		10,543,687
				13,163,611
Energy - 2.29%
Exide Technologies, Series B
10.50% due 03/15/2013		9,885,000		9,489,600
Financial Services - 0.46%
Ford Motor Credit Company LLC
7.50% due 08/01/2012		1,795,000		1,652,154
Ucar Finance, Inc.
10.25% due 02/15/2012		282,000		273,892
				1,926,046
Healthcare Services - 0.00%
Ralin Medical, Inc.
0.00% due 11/21/2037 ^		170		0
International Oil - 0.37%
Dominion Petroleum Acquisitions
10.00% due 10/01/2011 ^		1,685,000		1,534,788
Leisure Time - 12.08%
American Casino & Entertainment Properties LLC
11.00% due 06/15/2014 (f)		995,000		828,337
Fontainebleau Las Vegas
11.00% due 06/15/2015 ^ (f)		20,530,000		718,550
Fontainebleau Senior Note
12.50% due 06/01/2022 ^		3,696,900		207,408
Greektown Holdings LLC
10.75% due 12/01/2013 ^ (f)		7,679,000		1,650,985
Indianapolis Downs Capital LLC
11.00% due 11/01/2012 (f)		1,110,000		788,100
Isle of Capri Casinos, Inc.
7.00% due 03/01/2014		5,546,000		4,825,020
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		2,795,000		2,515,500
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 ^ (f)		7,335,000		3,227,400
Majestic Star Casino LLC
9.50% due 10/15/2010 ^		20,585,000		12,968,550
9.75% due 01/15/2011 ^		4,515,000		457,144
Marquee Holdings, Inc.
12.00% due 08/15/2014		820,000		683,675
Mashantucket Western Pequot Tribe
8.50% due 11/15/2015 (f)		12,272,000		2,577,120
MGM Mirage, Inc.
11.125% due 11/15/2017 (f)		1,035,000		1,128,150
Mohegan Tribal Gaming Authority
8.00% due 04/01/2012		2,000,000		1,640,000
MTR Gaming Group, Inc.
12.625% due 07/15/2014 (f)		3,600,000		3,510,000
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		9,285,000		6,824,475
Travelport LLC
9.875% due 09/01/2014		4,250,000		3,601,875
11.875% due 09/01/2016		715,000		550,550
Trump Entertainment Resorts, Inc.
8.50% due 06/01/2015 ^		13,440,000		1,344,000
				50,046,839
Manufacturing - 0.25%
Sequa Corp.
11.75% due 12/01/2015 (f)		1,655,000		1,042,650
Metal & Metal Products - 3.86%
CII Carbon LLC
11.125% due 11/15/2015 (f)		17,330,000		15,986,925
Paper - 1.36%
AbitibiBowater, Inc.
11.50% due 06/30/2010 ^ (b)		338,226		263,253
Abitibi-Consolidated Company of Canada
6.00% due 06/20/2013 ^		1,620,000		178,200
7.75% due 06/15/2011 ^		2,051,000		225,610
8.375% due 04/01/2015 ^		2,850,000		313,500
15.50% due 07/15/2010 ^ (f)		360,000		57,600
Abitibi-Consolidated, Inc.
7.40% due 04/01/2018 ^		500,000		55,000
7.50% due 04/01/2028 ^		347,000		38,170
Jefferson Smurfit Corp.
8.25% due 10/01/2012 ^		740,000		464,350
Newark Group, Inc.
9.75% due 03/15/2014 ^		411,000		4,110
NewPage Corp.
10.00% due 05/01/2012		1,500,000		813,750
PE Paper Escrow GmbH
12.00% due 08/01/2014 (f)		755,000		773,875
Pope & Talbot, Inc.
8.375% due 06/01/2013 ^		400,000		2,040
8.375% due 06/01/2013 ^		1,800,000		9,180
Sappi Papier Holding AG
7.50% due 06/15/2032 (f)		3,935,000		2,046,200
Verso Paper Holdings LLC
11.50% due 07/01/2014 (f)		385,000		377,300
				5,622,138
Publishing - 0.49%
Idearc, Inc.
8.00% due 11/15/2016 ^		18,405,000		1,403,381
Quebecor World Capital ULC
8.75% due 03/15/2016 ^ (f)		560,000		50,400
World Color Press, Inc.
9.75% due 01/15/2015 ^ (f)		3,155,000		283,950
World Color USA Corp.
6.125% due 11/15/2013 ^		3,255,000		276,675
				2,014,406

The accompanying notes are an integral part of the financial statements.

145

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Income Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Real Estate - 0.51%
iStar Financial, Inc.
10.00% due 06/15/2014 (f)	$	1,455,000	$	1,040,325
iStar Financial, Inc., Series 1
5.875% due 03/15/2016		1,995,000		773,063
Realogy Corp.
10.50% due 04/15/2014		505,000		300,475
				2,113,863
Retail - 0.14%
Steinway Musical Instruments, Inc.
7.00% due 03/01/2014 (f)		745,000		603,450
Telecommunications Equipment &
Services - 1.24%
Intelsat Bermuda, Ltd.
11.25% due 02/04/2017 (f)		1,235,000		1,167,075
Intelsat Jackson Holdings, Ltd.
11.50% due 06/15/2016		1,990,000		2,024,825
Mobile Satellite Ventures LP zero coupon, Step up to 14.00% on04/01/2010 due 04/01/2013		1,190,000		773,500
Terrestar Networks, Inc., PIK
15.00% due 02/15/2014 (f)		1,547,568		1,160,676
				5,126,076
Tobacco - 0.32%
North Atlantic Trading Company
10.00% due 03/01/2012 (f)		2,626,750		1,313,375
TOTAL CORPORATE BONDS (Cost $368,368,127)			$	266,167,255
CONVERTIBLE BONDS - 7.51%
Air Travel - 4.56%
Pinnacle Airlines Corp.
3.25% due 02/15/2025		3,035,000		2,902,219
UAL Corp.
4.50% due 06/30/2021		32,051,000		15,992,359
				18,894,578
Cable & Television - 2.70%
Charter Communications, Inc.
6.50% due 10/01/2027 ^		26,004,000		11,181,720
Insurance - 0.25%
MBIA Insurance Company
14.00% until 01/15/2013, then variable due 01/15/2033 (f)		2,585,000		1,046,925
TOTAL CONVERTIBLE BONDS (Cost $33,885,127)			$	31,123,223
COLLATERALIZED MORTGAGE
OBLIGATIONS - 1.39%
Countrywide Alternative Loan Trust, Series 2007-OA9, Class B1
2.0156% due 06/25/2047 (b)(f)		308,992		1,162
Countrywide Alternative Loan Trust, Series 2007-OA9, Class XP
3.5678% IO due 06/25/2047		47,218,778		1,305,897
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (f)		2,370,000		2,075,243
DSLA Mortgage Loan Trust, Series 2005-AR5, Class X2
3.2982% IO due 08/19/2045		36,974,023		843,470
Global Tower Partners Acquisition LLC, Series 2007-1A, Class G
7.8737% due 05/15/2037 (f)		515,000		458,792
GS Mortgage Securities Corp., Series 2006-NIM3, Class OS zero coupon due 10/26/2037		5,000		500
Harborview Mortgage Loan Trust, Series 2006-BU1, Class R zero coupon due 02/19/2046		161,449,387		2
Harborview Mortgage Loan Trust, Series 2007-3, Class ES
0.35% due 05/19/2047		59,998,844		243,745
Harborview Mortgage Loan Trust, Series 2007-4, Class ES
0.35% due 07/19/2047		61,312,772		268,243
Harborview Mortgage Loan Trust, Series 2007-6, Class ES
0.3425% due 08/19/2037 (f)		45,175,433		183,525
Lehman XS Net Interest Margin Notes, Series 2007-GPM8, Class A3
9.00% due 01/28/2047 ^ (f)		317,665		0
Lehman XS Net Interest Margin Notes, Series 2007-GPM8, Class A4
9.00% due 01/28/2047 ^ (f)		470,000		0
Washington Mutual Alternative Mortgage
Pass-Through Certificates, Series 2005-AR19, Class B1
0.9656% due 12/25/2045 (b)		2,991,622		356,673
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $12,208,424)			$	5,737,252
ASSET BACKED SECURITIES - 0.53%
Dominos Pizza Master Issuer LLC, Series 2007-1, Class M1
7.629% due 04/27/2037 (f)		3,560,000		2,207,200
TOTAL ASSET BACKED SECURITIES (Cost $3,559,977)			$	2,207,200
DEFAULTED BONDS BEYOND MATURITY
DATES - 0.27%
Electronics - 0.26%
Muzak LLC/Muzak Finance Corp.
9.875% due 03/15/2009 ^		919,000		321,650
10.00% due 02/15/2009 ^		2,170,000		759,500
				1,081,150
Publishing - 0.01%
World Color USA Corp.
4.875% due 11/15/2008 ^		365,000		31,025
TOTAL DEFAULTED BONDS BEYOND MATURITY DATES (Cost $3,223,336)			$	1,112,175
COMMON STOCKS - 8.34%
Advertising - 0.00%
Vertis Holdings, Inc. *		48,700		0

The accompanying notes are an integral part of the financial statements.

146

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Income Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Air Travel - 4.03%
Delta Air Lines, Inc. *		2,159,186	$	15,589,323
UAL Corp. *		47,000		292,810
US Airways Group, Inc. *		234,532		797,409
				16,679,542
Auto Parts - 0.09%
Federal Mogul Corp. *		31,002		390,005
Automobiles - 0.96%
Ford Motor Company *		526,000		3,997,600
Broadcasting - 1.32%
Canadian Satellite Radio Holdings, Inc. *		577,161		685,370
Canadian Satellite Radio Holdings, Series A *		264,169		253,371
Sirius XM Radio, Inc. *		6,726,931		4,530,588
				5,469,329
Cable & Television - 1.36%
Adelphia Recovery Trust, Series ACC-1 *		5,806,367		130,643
Adelphia Recovery Trust, Series Arahova *		424,949		72,666
Comcast Corp., Class A		222,469		3,245,823
Time Warner Cable, Inc.		59,189		2,185,258
				5,634,390
Containers & Glass - 0.00%
Pliant Corp. * (a)		78		0
Forest Products - 0.01%
Tembec, Inc. *		25,800		20,032
International Oil - 0.19%
Dominion Petroleum, Ltd., GDR *		6,142,716		775,414
Leisure Time - 0.00%
Fontainebleau Resorts LLC, Class A *		65,203		0
Retail Trade - 0.10%
CVS Caremark Corp.		11,000		412,720
Telephone - 0.28%
Sprint Nextel Corp. *		321,650		1,177,239
TOTAL COMMON STOCKS (Cost $72,771,653)			$	34,556,271
PREFERRED STOCKS - 7.27%
Air Travel - 2.37%
Continental Airlines Finance Trust II, 6.00%		515,074		9,818,598
Banking - 2.79%
Bank of America Corp., 8.20%		368,400		8,137,956
Bank of America Corp., Series L, 7.25%		3,950		3,408,850
				11,546,806
Containers & Glass - 0.00%
Pliant Corp., Series AA, 13.00%, PIK		685		72
Financial Services - 0.86%
Wells Fargo & Company, Series L, 7.50%		4,195		3,576,238
Real Estate - 1.25%
iStar Financial, Inc., Series E, 7.875%		310,545		1,987,488
iStar Financial, Inc., Series F, 7.80%		198,032		1,255,523
iStar Financial, Inc., Series G, 7.65%		79,317		491,765
iStar Financial, Inc., Series I, 7.50%		232,232		1,449,128
				5,183,904
TOTAL PREFERRED STOCKS (Cost $25,662,998)			$	30,125,618
TERM LOANS - 14.83%
Advertising - 0.90%
R.H. Donnelley Corp.
0.00% due 06/30/2011 (b)(m)		1,170,000		948,531
6.75% due 06/30/2011 ^ (b)		3,387,043		2,773,141
				3,721,672
Air Travel - 3.47%
Delta Airlines, Inc.
3.5256% due 04/30/2014 (b)		6,903,261		5,273,601
Northwest Airlines
2.28% due 12/31/2010 (b)		1,640,527		1,569,788
US Airways Group, Inc.
2.7628% due 03/23/2014 (b)		14,011,576		7,545,233
				14,388,622
Auto Parts - 1.80%
Lear Corp.
0.00% due 04/25/2012 (b)(m)		9,179,500		7,455,039
Forest Products - 0.03%
Tembec, Inc.
7.31% due 02/28/2012 (b)		180,000		117,000
Leisure Time - 3.70%
East Valley Tourist Development
7.7756% due 08/06/2012 (b)		765,000		466,650
Fontainebleau Las Vegas
4.316% due 06/06/2014 (b)		1,915,537		363,952
4.3175% due 06/06/2014 ^ (b)		896,963		170,423
Greektown Holdings LLC
0.00% due 12/03/2012 (b)(m)		8,941,365		6,549,550
0.00% due 12/03/2012 (b)(m)		1,708,484		1,251,464
0.00% due 12/02/2010 (b)(m)		5,446,645		3,948,818
9.75% due 09/09/2009 (b)		688,013		674,253
9.75% due 09/09/2009 (b)		904,348		886,261
11.75% due 09/09/2009 (b)		1,012,656		998,732
				15,310,103
Newspapers - 0.00%
Star Tribune Corp.
11.34% due 03/01/2015 ^ (b)		3,880,000		9,704
Publishing - 1.82%
Idearc, Inc.
3.220% due 11/17/2014 ^ (b)		14,997,400		6,886,311
The Star Tribune Company
5.051% due 03/05/2014 ^ (b)		2,826,950		671,401
				7,557,712
Real Estate - 0.27%
Realogy Corp.
3.088% due 10/10/2013 (b)		311,818		237,650
3.3088% due 10/10/2013 (b)		1,158,182		882,700
				1,120,350

The accompanying notes are an integral part of the financial statements.

147

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Income Fund (continued)

	Shares or Principal Amount		Value
TERM LOANS (continued)
Transportation - 2.84%
Swift Transportation Company, Inc.
3.5625% due 05/10/2014 (b)	$	14,867,188	$	11,763,663
TOTAL TERM LOANS (Cost $68,240,290)			$	61,443,865
WARRANTS - 0.00%
Metal & Metal Products - 0.00%
New Gold, Inc.
(Expiration date 06/28/2017, strike price CAD 15.00) *		44,388		12,569
TOTAL WARRANTS (Cost $0)			$	12,569
OPTIONS - 0.52%
Call Options - 0.52%
Comcast Corp.
Expiration 01/16/2010 at $15.00 *		43,700		67,735
Expiration 01/16/2010 at $20.00 *		161,500		32,300
Expiration 01/16/2010 at $25.00 *		8,450,000		4,225
Delta Air Lines, Inc.
Expiration 01/16/2010 at $5.00 *		350,000		910,000
Expiration 01/16/2010 at $7.50 *		150,000		165,000
Delta Airlines, Inc.
Expiration 01/16/2010 at $10.00 *		150,000		52,500
Over The Counter Purchase Call on the USD vs. CAD
Expiration 04/20/2010 at $1.30 *		98,000,000		467,754
Expiration 04/01/2010 at $1.30 *		98,000,000		467,754
				2,167,268
TOTAL OPTIONS (Cost $5,566,002)			$	2,167,268
SHORT TERM INVESTMENTS - 0.00%
John Hancock CollateralInvestment Trust, 0.3900% (c)(g)		6	$	60
TOTAL SHORT TERM INVESTMENTS (Cost $60)			$	60
Total Investments (High Income Fund) (Cost $593,485,994) - 104.90%			$	434,652,756
Other assets and liabilities, net - (4.90)%				(20,320,005	)
TOTAL NET ASSETS - 100.00%			$	414,332,751

High Yield Fund

		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS - 3.44%
Argentina - 0.10%
Republic of Argentina
1.3182% due 12/15/2035 ^ (b)		$	48,000	$	2,520
1.9852% due 12/15/2035 ^ (b)	EUR		587,000		35,344
2.4548% due 12/15/2035 (b)	ARS		1,938,355		24,918
7.00% due 09/12/2013 ^		$	751,000		538,843
8.00% due 10/30/2009 ^	EUR		175,000,000		26,912
11.75% due 05/20/2011 ^			2,425,000		368,830
					997,367
Brazil - 0.87%
Federative Republic of Brazil
10.00% due 01/01/2012	BRL		10,336,000	$	5,460,251
10.00% due 07/01/2010			5,470,000		2,969,377
					8,429,628
Indonesia - 0.44%
Republic of Indonesia
9.75% due 05/15/2037	IDR		11,122,000,000		914,742
10.25% due 07/15/2027			9,327,000,000		835,908
10.25% due 07/15/2022			14,706,000,000		1,391,344
11.00% due 09/15/2025			11,174,000,000		1,079,669
					4,221,663
Panama - 0.28%
Republic of Panama
9.375% due 04/01/2029		$	2,150,000		2,752,000
Peru - 0.19%
Republic of Peru
6.55% due 03/14/2037			648,000		644,760
7.35% due 07/21/2025			77,000		83,930
8.75% due 11/21/2033			862,000		1,062,415
					1,791,105
Russia - 0.06%
Government of Russia
7.50% due 03/31/2030			537,600		551,040
Turkey - 0.90%
Republic of Turkey
6.875% due 03/17/2036			6,196,000		5,940,415
7.00% due 06/05/2020			146,000		151,657
7.00% due 09/26/2016			535,000		565,763
7.375% due 02/05/2025			1,929,000		2,032,684
					8,690,519
Venezuela - 0.60%
Republic of Venezuela
5.75% due 02/26/2016			4,667,000		3,196,895
7.65% due 04/21/2025			949,000		564,655
8.50% due 10/08/2014			339,000		284,760
9.375% due 01/13/2034			1,588,000		1,079,840
10.75% due 09/19/2013			652,000		622,660
					5,748,810
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $36,672,431)				$	33,182,132
CORPORATE BONDS - 84.42%
Advertising - 0.01%
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016 ^			1,960,000		115,150
Air Travel - 1.32%
Continental Airlines, Inc., Series C
7.339% due 04/19/2014			4,060,000		3,166,800
DAE Aviation Holdings, Inc.
11.25% due 08/01/2015 (f)			13,645,000		9,551,500
					12,718,300

The accompanying notes are an integral part of the financial statements.

148

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Airlines - 0.21%
Delta Air Lines, Inc.
8.954% due 08/10/2014	$	2,780,003	$	2,001,602
Aluminum - 0.63%
Novelis, Inc.
7.25% due 02/15/2015		4,616,000		3,738,960
11.50% due 02/15/2015 (f)		2,425,000		2,346,188
				6,085,148
Apparel & Textiles - 0.53%
Oxford Industries, Inc.
11.375% due 07/15/2015		4,905,000		5,101,200
Auto Parts - 0.65%
Affinia Group, Inc.
10.75% due 08/15/2016 (f)		800,000		826,000
Allison Transmission, Inc., PIK
11.25% due 11/01/2015 (f)		5,377,000		4,516,680
Keystone Automotive Operations, Inc.
9.75% due 11/01/2013		1,820,000		477,750
Visteon Corp.
8.25% due 08/01/2010 ^		2,199,000		131,940
12.25% due 12/31/2016 ^ (f)		5,115,000		345,262
				6,297,632
Auto Services - 0.56%
Penhall International Corp.
12.00% due 08/01/2014 (f)		8,900,000		3,560,000
RSC Equipment Rental, Inc.
10.00% due 07/15/2017 (f)		1,805,000		1,886,225
				5,446,225
Automobiles - 0.37%
General Motors Corp.
7.20% due 01/15/2011 ^		9,575,000		1,412,313
8.375% due 07/15/2033 ^		14,255,000		2,191,706
				3,604,019
Banking - 1.79%
Bank of America Corp.
8.125% until 05/15/2018, then variable due 12/29/2049		670,000		586,712
ICICI Bank, Ltd.
6.375% until 04/30/2017, then variable due 04/30/2022 (f)		1,864,000		1,480,758
6.375% until 04/30/2017, then variable due 04/30/2022		1,573,000		1,238,737
Rabobank Nederland
11.00% until 06/30/2019, then variable due 12/29/2049 (f)		3,040,000		3,591,000
Royal Bank of Scotland Group PLC
5.00% due 11/12/2013		1,720,000		1,555,633
5.05% due 01/08/2015		680,000		602,639
RSHB Capital SA for OJSC Russian Agricultural Bank
6.299% due 05/15/2017 (f)		944,000		847,240
6.299% due 05/15/2017		760,000		678,300
7.125% due 01/14/2014 (f)		1,180,000		1,174,808
7.125% due 01/14/2014		2,300,000		2,273,962
7.175% due 05/16/2013 (f)		1,069,000		1,066,328
7.175% due 05/16/2013		900,000		896,220
RSHB Capital SA for OJSC Russian Agricultural Bank (continued)
9.00% due 06/11/2014 (f)		1,170,000		1,243,008
				17,235,345
Broadcasting - 0.01%
CMP Susquehanna Radio Holdings, Corp.
9.875% due 05/15/2014		192,000		72,000
Building Materials & Construction - 2.14%
Associated Materials, Inc.
9.75% due 04/15/2012		7,465,000		6,681,175
11.25 due 03/01/2014		11,295,000		6,099,300
Nortek, Inc.
10.00% due 12/01/2013 (f)		3,660,000		3,403,800
NTK Holdings, Inc.
10.75% due 03/01/2014		10,440,000		469,800
Odebrecht Finance, Ltd.
7.50% due 10/18/2017 (f)		3,950,000		3,969,750
				20,623,825
Business Services - 1.29%
Affinion Group, Inc.
10.125% due 10/15/2013		3,055,000		3,035,903
10.125% due 10/15/2013 (f)		490,000		486,938
11.50% due 10/15/2015		9,345,000		8,971,200
				12,494,041
Cable & Television - 2.84%
Cablevision Systems Corp., Series B
8.00% due 04/15/2012		270,000		276,075
Charter Communications Holdings I LLC
11.00% due 10/01/2015 ^		21,184,000		2,965,760
11.00% due 10/01/2015 ^		2,830,000		367,900
Charter Communications Holdings II LLC
10.25% due 10/01/2013 ^ (a)		3,338,000		3,709,352
Charter Communications Holdings LLC
11.75% due 05/15/2011 ^		1,355,000		1,694
12.125% due 01/15/2012 ^		1,230,000		3,075
Charter Communications, Inc.
12.875% due 09/15/2014 ^ (f)		4,475,000		4,855,375
CSC Holdings, Inc.
8.50% due 06/15/2015 (f)		45,000		45,450
DirecTV Holdings LLC
8.375% due 03/15/2013		1,000,000		1,025,000
DISH DBS Corp.
7.875% due 09/01/2019 (f)		7,825,000		7,766,312
EchoStar DBS Corp.
7.75% due 05/31/2015		505,000		494,900
Univision Communications, Inc.
12.00% due 07/01/2014 (f)		4,260,000		4,473,000
UPC Holding BV
9.875% due 04/15/2018 (f)		1,455,000		1,471,369
				27,455,262
Cellular Communications - 2.61%
ALLTEL Communications, Inc., PIK
10.375% due 12/01/2017 (f)		3,940,000		4,790,835
America Movil SAB de CV
5.625% due 11/15/2017		1,410,000		1,413,907

The accompanying notes are an integral part of the financial statements.

149

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cellular Communications (continued)
Cricket Communications, Inc.
7.75% due 05/15/2016 (f)	$	2,445,000	$	2,371,650
MetroPCS Wireless, Inc.
9.25% due 11/01/2014		255,000		250,219
True Move Company, Ltd.
10.375% due 08/01/2014 (f)		2,610,000		2,375,100
10.75% due 12/16/2013 (f)		10,410,000		9,759,375
10.75% due 12/16/2013		190,000		172,900
UBS Luxembourg SA for OJSC Vimpel Communications
8.25% due 05/23/2016		3,600,000		3,456,000
Vimpelcom
8.375% due 04/30/2013 (f)		580,000		577,796
				25,167,782
Chemicals - 0.32%
Ashland, Inc.
9.125% due 06/01/2017 (f)		2,750,000		2,887,500
Methanex Corp.
8.75% due 08/15/2012		230,000		226,550
				3,114,050
Coal - 0.78%
Arch Coal, Inc.
8.75% due 08/01/2016 (f)		2,580,000		2,580,000
International Coal Group, Inc.
10.25% due 07/15/2014		5,855,000		4,947,475
				7,527,475
Commercial Services - 1.68%
Altegrity, Inc.
10.50% due 11/01/2015 (f)		620,000		513,050
11.75% due 05/01/2016 (f)		5,180,000		3,949,750
American Achievement Corp.
8.25% due 04/01/2012 (f)		1,300,000		1,274,000
Ceridian Corp.
11.25% due 11/15/2015		1,170,000		994,500
Ceridian Corp., PIK
12.25% due 11/15/2015		2,590,000		2,046,100
DI Finance/DynCorp International LLC, Series B
9.50% due 02/15/2013		2,751,000		2,788,826
Rental Service Corp.
9.50% due 12/01/2014		5,185,000		4,640,575
				16,206,801
Construction Materials - 0.05%
USG Corp.
9.75% due 08/01/2014 (f)		480,000		493,200
Containers & Glass - 0.56%
Graham Packaging Company
9.875% due 10/15/2014		2,060,000		2,049,700
Solo Cup Company
10.50% due 11/01/2013 (f)		3,230,000		3,391,500
				5,441,200
Containers-Paper/Plastic - 0.08%
Graham Packaging Company
8.50% due 10/15/2012		785,000		785,000
Radnor Holdings, Inc.
11.00% due 03/15/2010 ^		2,350,000		2,938
				787,938
Crude Petroleum & Natural Gas - 4.73%
Berry Petroleum Company
10.25% due 06/01/2014		2,340,000		2,442,375
Chesapeake Energy Corp.
6.25% due 01/15/2018		6,185,000		5,380,950
6.625% due 01/15/2016		1,000,000		908,750
7.25% due 12/15/2018		2,800,000		2,562,000
Encore Acquisition Company
9.50% due 05/01/2016		1,035,000		1,045,350
Forest Oil Corp.
8.50% due 02/15/2014 (f)		2,445,000		2,457,225
Mariner Energy, Inc.
7.50% due 04/15/2013		1,820,000		1,719,900
8.00% due 05/15/2017		1,760,000		1,557,600
OPTI Canada, Inc.
7.875% due 12/15/2014		310,000		198,400
8.25% due 12/15/2014		4,610,000		2,996,500
Parallel Petroleum Corp.
10.25% due 08/01/2014		1,075,000		736,375
PetroHawk Energy Corp.
7.875% due 06/01/2015 (f)		1,390,000		1,348,300
9.125% due 07/15/2013		3,125,000		3,171,875
Plains Exploration & Production Company
10.00% due 03/01/2016		3,355,000		3,556,300
Quicksilver Resources, Inc.
7.125% due 04/01/2016		1,675,000		1,390,250
8.25% due 08/01/2015		415,000		390,100
11.75% due 01/01/2016		1,105,000		1,171,300
SandRidge Energy, Inc.
8.00% due 06/01/2018 (f)		1,150,000		1,040,750
SandRidge Energy, Inc., PIK
8.625% due 04/01/2015		9,850,000		9,259,000
W&T Offshore, Inc.
8.25% due 06/15/2014 (f)		2,630,000		2,314,400
				45,647,700
Domestic Oil - 1.00%
Exco Resources, Inc.
7.25% due 01/15/2011		4,605,000		4,512,900
Stone Energy Corp.
6.75% due 12/15/2014		3,855,000		2,659,950
Whiting Petroleum Corp.
7.00% due 02/01/2014		893,000		875,140
7.25% due 05/01/2012		1,595,000		1,587,025
				9,635,015
Educational Services - 0.81%
Education Management Corp.
10.25% due 06/01/2016		7,481,000		7,826,996
Electrical Utilities - 5.33%
AES Corp.
8.00% due 06/01/2020 (f)		750,000		701,250
8.75% due 05/15/2013 (f)		3,512,000		3,564,680
8.875% due 02/15/2011		968,000		997,040
Edison Mission Energy
7.20% due 05/15/2019		3,670,000		2,660,750

The accompanying notes are an integral part of the financial statements.

150

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
Edison Mission Energy (continued)
7.625% due 05/15/2027	$	5,700,000	$	3,819,000
7.75% due 06/15/2016		1,455,000		1,185,825
EEB International Ltd.
8.75% due 10/31/2014 (f)		5,250,000		5,591,250
Energy Future Holdings Corp., PIK
11.25% due 11/01/2017		28,506,600		17,389,026
Mirant Mid Atlantic LLC, Series B
9.125% due 06/30/2017		245,995		247,225
Mirant Mid Atlantic LLC, Series C
10.06% due 12/30/2028		3,137,228		3,152,914
Orion Power Holdings, Inc.
12.00% due 05/01/2010		1,645,000		1,698,463
Texas Competitive Electric Holdings Company LLC, PIK
10.50% due 11/01/2016		6,716,562		3,929,189
Texas Competitive Electric Holdings Company LLC, Series A
10.25% due 11/01/2015		8,740,000		5,790,250
Texas Competitive Electric Holdings Company LLC, Series B
10.25% due 11/01/2015		1,130,000		748,625
				51,475,487
Electronics - 0.16%
L-3 Communications Corp., Series B
6.375% due 10/15/2015		1,660,000		1,564,550
Energy - 0.88%
Enterprise Products Operating LP
8.375% until 08/01/2016, then variable due 08/01/2066		1,140,000		988,950
7.034% until 01/15/2018, then variable due 01/15/2068		3,350,000		2,747,000
Mirant North America LLC
7.375% due 12/31/2013		575,000		552,000
NRG Energy, Inc.
1.12% due 02/01/2014		1,416,018		1,335,401
7.25% due 02/01/2014		2,465,000		2,397,213
VeraSun Energy Corp.
9.375% due 06/01/2017 ^		3,705,000		518,700
				8,539,264
Financial Services - 8.72%
AAC Group Holding Corp.
10.25 due 10/01/2012 (f)		240,000		208,800
CIT Group, Inc.
0.7588% due 03/12/2010 (b)		3,430,000		2,143,750
4.125% due 11/03/2009		1,585,000		1,037,195
First Data Corp.
9.875% due 09/24/2015 (f)		6,460,000		5,458,700
Ford Motor Credit Company LLC
5.8794% due 06/15/2011 (b)		3,410,000		3,137,200
12.00% due 05/15/2015		21,190,000		22,059,913
Fresenius US Finance II, Inc.
9.00% due 07/15/2015 (f)		4,115,000		4,464,775
GMAC LLC
8.00% due 11/01/2031 (f)		13,135,000		10,146,788
Hawker Beechcraft Acquisition Company LLC, PIK
8.875% due 04/01/2015		16,185,000		9,225,450
JPMorgan Chase & Company, Series 1
7.90% until 04/30/2018, then variable due 04/29/2049		8,035,000		7,657,516
JSG Funding PLC
7.75% due 04/01/2015		1,275,000		1,032,750
Lehman Brothers Holdings, Inc., MTN
5.25% due 02/06/2012 ^		3,125,000		546,875
Lukoil International Finance BV, Series REGS
6.356% due 06/07/2017		3,110,000		2,923,400
Mubadala Development Company
5.75% due 05/06/2014 (f)		2,020,000		2,126,349
Ocwen Capital Trust I		��
10.875% due 08/01/2027		805,000		666,138
TNK-BP Finance SA
6.625% due 03/20/2017 (f)		96,000		85,440
6.625% due 03/20/2017		1,870,000		1,664,300
7.50% due 07/18/2016 (f)		1,205,000		1,132,700
7.50% due 07/18/2016		370,000		349,650
7.875% due 03/13/2018 (f)		1,460,000		1,372,400
Wells Fargo Capital XIII, Series GMTN
7.70% until 03/26/2013, then variable due 12/29/2049		6,295,000		5,476,650
Wells Fargo Capital XV
9.75% until 09/26/2013, then variable due 12/29/2049		1,210,000		1,228,150
				84,144,889
Food & Beverages - 0.64%
Dole Food Company, Inc.
8.875% due 03/15/2011		3,915,000		3,905,212
13.875% due 03/15/2014 (f)		80,000		91,200
Smithfield Foods, Inc.
10.00% due 07/15/2014 (f)		2,110,000		2,152,200
				6,148,612
Funeral Services - 0.07%
Service Corp. International
7.50% due 04/01/2027		830,000		701,350
Furniture & Fixtures - 1.13%
Norcraft Companies LP
9.00% due 11/01/2011		4,770,000		4,817,700
Norcraft Holdings Capital
9.75 due 09/01/2012		6,395,000		6,107,225
				10,924,925
Gas & Pipeline Utilities - 1.92%
Atlas Pipeline Partners LP
8.75% due 06/15/2018		5,290,000		4,311,350
Dynegy Holdings, Inc.
7.75% due 06/01/2019		10,970,000		7,788,700
Dynegy-Roseton Danskammer, Series B
7.67% due 11/08/2016		700,000		626,500
El Paso Corp.
7.375% due 12/15/2012		225,000		228,190
7.875% due 06/15/2012		3,025,000		3,099,581
MarkWest Energy Partners LP / MarkWest Energy Finance Corp., Series B
8.75% due 04/15/2018 (f)		1,640,000		1,558,000

The accompanying notes are an integral part of the financial statements.

151

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
Targa Resources Partners LP
8.25% due 07/01/2016	$	1,040,000	$	930,800
				18,543,121
Healthcare Products - 1.20%
Biomet, Inc., PIK
10.375% due 10/15/2017		5,515,000		5,749,388
FMC Finance III SA
6.875% due 07/15/2017		3,130,000		2,957,850
Leiner Health Products, Inc.
11.00% due 06/01/2012 ^ (a)		14,530,000		36,325
Universal Hospital Services, Inc.
4.635% due 06/01/2015 (b)		1,300,000		1,053,000
Universal Hospital Services, Inc., PIK
8.50% due 06/01/2015		1,855,000		1,790,075
				11,586,638
Healthcare Services - 2.79%
CRC Health Corp.
10.75% due 02/01/2016		11,340,000		7,654,500
DaVita, Inc.
7.25% due 03/15/2015		2,945,000		2,841,925
U.S. Oncology Holdings, Inc., PIK
6.9037% due 03/15/2012		8,150,000		6,927,500
U.S. Oncology, Inc.
9.125% due 08/15/2017 (f)		3,290,000		3,421,600
Vanguard Health Holding Company I LLC
zero coupon, Step up to 11.25% on 10/01/2009 due 10/01/2015		2,135,000		2,145,675
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		4,000,000		3,930,000
				26,921,200
Holdings Companies/Conglomerates - 0.59%
Ashtead Capital, Inc.
9.00% due 08/15/2016 (f)		2,975,000		2,610,563
Leucadia National Corp.
7.125% due 03/15/2017		1,370,000		1,256,975
8.125% due 09/15/2015		1,840,000		1,803,200
				5,670,738
Homebuilders - 0.19%
K Hovnanian Enterprises, Inc.
11.50% due 05/01/2013		1,915,000		1,852,763
Hotels & Restaurants - 1.54%
CCM Merger, Inc.
8.00% due 08/01/2013 (f)		4,315,000		3,495,150
Denny’s Corp.
10.00% due 10/01/2012		2,500,000		2,506,250
El Pollo Loco, Inc.
11.75% due 11/15/2013		5,875,000		5,023,125
11.75% due 12/01/2012 (f)		1,535,000		1,604,075
Sbarro, Inc.
10.375% due 02/01/2015		3,120,000		2,215,200
				14,843,800
Industrial Machinery - 0.38%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		3,965,000		3,409,900
Terex Corp.
10.875% due 06/01/2016		260,000		272,350
				3,682,250
Insurance - 0.91%
American International Group, Inc.
8.25% due 08/15/2018		3,915,000		3,135,348
American International Group, Inc., MTN
5.45% due 05/18/2017		4,890,000		3,274,642
5.85% due 01/16/2018		870,000		579,734
American International Group, Inc., Series WI
8.175% until 05/15/2038, then variable due 05/15/2068		1,385,000		650,950
Metlife Capital Trust IV
7.875% due 12/15/2067 (f)		1,310,000		1,152,800
				8,793,474
International Oil - 1.43%
Corral Finans AB, PIK
2.0094% due 04/15/2010 (b)(f)		9,803,986		7,500,049
KazMunaiGaz Finance Sub BV
8.375% due 07/02/2013 (f)		2,160,000		2,106,000
Petroplus Finance, Ltd.
6.75% due 05/01/2014 (f)		1,745,000		1,587,950
7.00% due 05/01/2017 (f)		2,950,000		2,581,250
				13,775,249
Leisure Time - 4.95%
Ameristar Casinos, Inc.
9.25% due 06/01/2014 (f)		1,000,000		1,022,500
Boyd Gaming Corp.
6.75% due 04/15/2014		3,370,000		2,936,112
7.125% due 02/01/2016		2,530,000		2,106,225
Choctaw Resort Development Enterprise
7.25% due 11/15/2019 (f)		837,000		527,310
Downstream Development Authority of the Quapaw Tribe of Oklahoma
12.00% due 10/15/2015 (f)		3,180,000		2,011,350
Fontainebleau Las Vegas
11.00% due 06/15/2015 ^ (f)		3,000,000		105,000
Harrahs Operating Escrow LLC
11.25% due 06/01/2017 (f)		5,325,000		5,418,188
Indianapolis Downs Capital LLC
11.00% due 11/01/2012 (f)		4,810,000		3,415,100
Inn of the Mountain Gods Resort & Casino
12.00% due 11/15/2010 ^		8,291,000		3,648,040
Mandalay Resort Group
7.625% due 07/15/2013		1,500,000		922,500
MGM Mirage, Inc.
6.625% due 07/15/2015		260,000		186,550
8.375% due 02/01/2011		3,120,000		2,644,200
8.50% due 09/15/2010		230,000		223,100
10.375% due 05/15/2014 (f)		460,000		484,150
11.125% due 11/15/2017 (f)		1,105,000		1,204,450
Mohegan Tribal Gaming Authority
7.125% due 08/15/2014		2,900,000		2,030,000
Park Place Entertainment Corp.
8.125% due 05/15/2011		9,280,000		8,537,600
Penn National Gaming, Inc.
8.75% due 08/15/2019 (f)		870,000		863,475

The accompanying notes are an integral part of the financial statements.

152

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Leisure Time (continued)
Pinnacle Entertainment, Inc.
8.625% due 08/01/2017 (f)	$	3,300,000	$	3,250,500
Snoqualmie Entertainment Authority
4.68% due 02/01/2014 (b)(f)		2,315,000		1,134,350
9.125% due 02/01/2015 (f)		570,000		313,500
Station Casinos, Inc.
6.00% due 04/01/2012 ^		5,610,000		1,774,162
6.50% due 02/01/2014 ^		500,000		17,500
6.625% due 03/15/2018 ^		1,705,000		59,675
7.75% due 08/15/2016 ^		6,180,000		1,923,525
WMG Acquisition Corp.
9.50% due 06/15/2016 (f)		950,000		983,250
				47,742,312
Medical-Hospitals - 2.54%
HCA, Inc., PIK
9.625% due 11/15/2016		12,019,000		12,139,190
Tenet Healthcare Corp.
7.375% due 02/01/2013		3,756,000		3,455,520
9.00% due 05/01/2015 (f)		2,117,000		2,169,925
10.00% due 05/01/2018 (f)		6,292,000		6,779,630
				24,544,265
Mining - 2.69%
FMG Finance Pty, Ltd.
10.625% due 09/01/2016 (f)		6,110,000		6,568,250
Noranda Aluminium Acquisition Corp., PIK
5.4125% due 05/15/2015 (b)		13,119,475		8,002,880
Rio Tinto Finance USA, Ltd.
9.00% due 05/01/2019		1,500,000		1,796,675
Teck Resources, Ltd.
9.75% due 05/15/2014		1,470,000		1,587,600
10.25% due 05/15/2016		1,220,000		1,348,100
10.75% due 05/15/2019		900,000		1,024,875
Vale Overseas, Ltd.
6.875% due 11/21/2036		1,612,000		1,613,942
8.25% due 01/17/2034		1,021,000		1,185,882
Vedanta Resources PLC
8.75% due 01/15/2014 (f)		2,870,000		2,805,425
				25,933,629
Paper - 3.73%
Abitibi-Consolidated Company of Canada
13.75% due 04/01/2011 ^ (f)		14,780,000		14,041,000
Appleton Papers, Inc.
8.125% due 06/15/2011		2,300,000		1,730,750
Appleton Papers, Inc., Series B
9.75% due 06/15/2014		9,689,000		4,372,161
Georgia Pacific LLC
8.25% due 05/01/2016 (f)		5,290,000		5,342,900
NewPage Corp.
6.7331% due 05/01/2012 (b)		8,600,000		3,676,500
NewPage Holding Corp., PIK
8.5788% due 11/01/2013 (b)		4,487,478		1,032,120
PE Paper Escrow GmbH
12.00% due 08/01/2014 (f)		1,170,000		1,199,250
Smurfit Capital Funding PLC
7.50% due 11/20/2025		2,280,000		1,772,700
Verso Paper Holdings LLC
11.50% due 07/01/2014 (f)		2,865,000		2,807,700
				35,975,081
Petroleum Services - 1.82%
Basic Energy Services, Inc.
11.625% due 08/01/2014 (f)		2,950,000		3,009,000
Belden & Blake Corp.
8.75% due 07/15/2012		7,695,000		6,887,025
Cie Generale de Geophysique-Veritas
9.50% due 05/15/2016 (f)		240,000		247,200
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015		1,690,000		1,605,500
Complete Production Services, Inc.
8.00% due 12/15/2016		2,485,000		2,130,887
Key Energy Services, Inc.
8.375% due 12/01/2014		3,380,000		3,058,900
SemGroup LP
8.75% due 11/15/2015 ^ (f)		10,803,000		648,180
				17,586,692
Publishing - 0.42%
Idearc, Inc.
8.00% due 11/15/2016 ^		6,615,000		504,394
Sun Media Corp.
7.625% due 02/15/2013		1,350,000		914,625
TL Acquisitions, Inc.
13.25 due 07/15/2015 (f)		3,120,000		2,636,400
				4,055,419
Railroads & Equipment - 1.37%
American Railcar Industries, Inc.
7.50% due 03/01/2014		1,610,000		1,493,275
Grupo Transportacion Ferroviaria Mexicana, SA de CV
9.375% due 05/01/2012		7,335,000		7,224,975
Kansas City Southern de Mexico SA de CV
7.375% due 06/01/2014		2,975,000		2,632,875
7.625% due 12/01/2013		1,150,000		1,040,750
Kansas City Southern Railway Company
13.00% due 12/15/2013		775,000		873,813
				13,265,688
Real Estate - 0.95%
Ashton Woods USA LLC/Ashton Woods Finance Company
zero coupon, Step up to 11.00% on 02/24/2012 due 06/30/2015 (f)		1,638,000		614,250
Forest City Enterprises, Inc.
7.625% due 06/01/2015		145,000		90,988
Host Hotels & Resorts LP, REIT
6.375% due 03/15/2015		1,140,000		1,068,750
Realogy Corp.
10.50% due 04/15/2014		7,440,000		4,426,800
12.375% due 04/15/2015		5,800,000		2,349,000
Realogy Corp., PIK
11.00% due 04/15/2014		644,732		319,142
Ventas Realty LP
6.50% due 06/01/2016		320,000		296,800
				9,165,730

The accompanying notes are an integral part of the financial statements.

153

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Retail - 0.99%
Eye Care Centers of America
10.75% due 02/15/2015	$	3,170,000	$	3,269,063
Inergy LP/Inergy Finance Corp.
8.25% due 03/01/2016 (f)		135,000		133,650
Michaels Stores, Inc.
10.00% due 11/01/2014		4,145,000		3,958,475
Suburban Propane Partners LP
6.875% due 12/15/2013		2,300,000		2,231,000
				9,592,188
Retail Trade - 1.32%
American Greetings Corp.
7.375% due 06/01/2016		375,000		320,625
American Greetings Corp., Series 2
7.375% due 06/01/2016		205,000		157,850
Blockbuster, Inc.
9.00% due 09/01/2012		6,145,000		3,210,763
Limited Brands, Inc.
8.50% due 06/15/2019 (f)		335,000		339,365
Neiman Marcus Group, Inc.
7.125% due 06/01/2028		1,870,000		1,421,200
Neiman Marcus Group, Inc., PIK
9.00% due 10/15/2015 (f)		9,843,650		7,333,519
				12,783,322
Semiconductors - 0.56%
Freescale Semiconductor, Inc.
8.875% due 12/15/2014		3,590,000		2,423,250
10.125% due 12/15/2016		2,422,000		1,344,210
Freescale Semiconductor, Inc., PIK
9.125% due 12/15/2014		1,164,806		675,587
Sensata Technologies B.V.
8.00% due 05/01/2014 (f)		1,100,000		940,500
				5,383,547
Steel - 1.81%
Evraz Group SA
8.875% due 04/24/2013 (f)		570,000		520,837
8.875% due 04/24/2013		4,070,000		3,713,875
9.50% due 04/24/2018 (f)		710,000		632,788
GTL Trade Finance, Inc.
7.25% due 10/20/2017 (f)		369,000		395,937
7.25% due 10/20/2017		4,300,000		4,579,865
Metals USA, Inc.
11.125% due 12/01/2015		3,995,000		3,655,425
Ryerson, Inc.
12.00% due 11/01/2015		4,275,000		3,933,000
				17,431,727
Telecommunications Equipment &
Services - 3.10%
Axtel SAB de CV
7.625% due 02/01/2017 (f)		4,700,000		4,241,750
7.625% due 02/01/2017		350,000		302,116
CC Holdings GS V LLC
7.75% due 05/01/2017 (f)		2,430,000		2,454,300
Citizens Communications Company
9.25% due 05/15/2011		100,000		105,250
Globo Comunicacoes e Participacoes SA
7.25% due 04/26/2022 (f)		3,798,000		3,892,950
Hawaiian Telcom Communications, Inc., Series B
12.50% due 05/01/2015 ^		3,360,000		4,200
Intelsat Bermuda, Ltd.
11.25% due 06/15/2016		2,875,000		2,997,187
Intelsat Intermediate Holding Company, Ltd.
zero coupon, Step up to 9.50% on 02/01/2010 due 02/01/2015		515,000		502,125
Intelsat Jackson Holdings, Ltd.
11.50% due 06/15/2016		12,205,000		12,418,588
iPCS, Inc.
2.6081% due 05/01/2013 (b)(f)		1,640,000		1,344,800
Wind Acquisition Finance SA
11.75% due 07/15/2017		1,495,000		1,622,075
World Access, Inc.
13.25% due 01/15/2049 ^		1,450,274		10,152
				29,895,493
Telephone - 3.46%
Cincinnati Bell Telephone Company
6.30% due 12/01/2028		2,115,000		1,522,800
Level 3 Financing, Inc.
9.25% due 11/01/2014		6,655,000		5,490,375
12.25% due 03/15/2013		1,625,000		1,584,375
Nordic Telephone Company Holdings
8.875% due 05/01/2016 (f)		3,520,000		3,572,800
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		2,883,000		2,782,095
Sprint Capital Corp.
6.875% due 11/15/2028		2,015,000		1,465,912
7.625% due 01/30/2011		1,255,000		1,256,569
8.375% due 03/15/2012		3,475,000		3,479,344
8.75% due 03/15/2032		12,035,000		9,989,050
Virgin Media, Inc.
9.125% due 08/15/2016		1,225,000		1,240,312
Windstream Corp.
8.625% due 08/01/2016		1,000,000		1,003,750
				33,387,382
Tobacco - 0.15%
Alliance One International, Inc.
10.00% due 07/15/2016 (f)		1,470,000		1,451,625
Transportation - 1.47%
Gulfmark Offshore, Inc.
7.75% due 07/15/2014		1,930,000		1,833,500
Horizon Lines, Inc.
4.25% due 08/15/2012		5,375,000		3,910,313
RailAmerica, Inc.
9.25% due 07/01/2017 (f)		4,695,000		4,853,456
Teekay Shipping Corp.
8.875% due 07/15/2011		3,627,000		3,608,865
				14,206,134
Trucking & Freight - 0.24%
Swift Transportation Company, Inc.
8.19% due 05/15/2015 (b)(f)		1,800,000		918,000
12.50% due 05/15/2017 (f)		2,525,000		1,388,750
				2,306,750
TOTAL CORPORATE BONDS (Cost $942,851,454)			$	814,973,200

The accompanying notes are an integral part of the financial statements.

154

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

		Shares or
		Principal
		Amount		Value
CONVERTIBLE BONDS - 0.37%
Telephone - 0.37%
Virgin Media, Inc.
6.50% due 11/15/2016 (f)		$	3,920,000	$	3,552,500
TOTAL CONVERTIBLE BONDS (Cost $1,898,484)				$	3,552,500
DEFAULTED BONDS BEYOND MATURITY
DATES - 0.30%
Argentina - 0.30%
Republic of Argentina
7.00% due 03/18/2004 ^	EUR		6,100,000,000		903,267
7.00% due 03/18/2004 ^			625,000		179,200
7.625 due 08/11/2007 ^			505,000,000		80,389
8.00% due 02/26/2008 ^			304,137		87,202
8.125% due 04/21/2008 ^			625,000		179,200
8.125% due 10/04/2004 ^			375,000		107,520
8.50% due 02/23/2005 ^			2,400,000		351,834
9.00% due 05/26/2009 ^			100,000		32,256
9.00% due 06/20/2003 ^			600,000		172,032
9.25% due 10/21/2002 ^			225,000		64,512
9.50% due 03/04/2004 ^			456,000		147,087
9.75% due 11/26/2003 ^			425,000		121,856
10.00% due 02/22/2007 ^			775,000		222,208
11.75% due 11/13/2026 ^			1,800,000		263,876
					2,912,439
TOTAL DEFAULTED BONDS BEYOND MATURITY DATES (Cost $3,812,311)				$	2,912,439
COMMON STOCKS - 0.03%
Chemicals - 0.03%
Georgia Gulf Corp. *			9,414		282,502
Telecommunications Equipment &
Services - 0.00%
XO Holdings, Inc. *			821		583
TOTAL COMMON STOCKS (Cost $345,826)				$	283,085
PREFERRED STOCKS - 1.92%
Banking - 0.89%
Bank of America Corp., Series L, 7.25%			9,380		8,094,940
Bank of America Corp. (k)			560,000		490,319
					8,585,259
Broadcasting - 0.00%
CMP Susquehanna Radio Holdings, Corp., Series A (f)(k)			44,870		16,826
Cable & Television - 0.00%
ION Media Networks, Inc., Series B, 12.00%			10		0
Chemicals - 0.61%
Georgia Gulf Corp.			210,773		5,848,945
Financial Services - 0.42%
Capital One Capital V, 10.25%			2,340,000		2,379,359
Preferred Blocker, Inc., 7.00% (f)			3,645		1,695,723
					4,075,082
TOTAL PREFERRED STOCKS (Cost $20,610,503)				$	18,526,112
TERM LOANS - 4.08%
Airlines - 0.29%
United Air Lines, Inc., Tranche B
2.3125% due 01/12/2014 (b)			4,368,671		2,756,631
Apparel & Textiles - 0.00%
Simmons Holdco, Inc., PIK
8.2238% due 02/15/2012 (b)			2,617,547		39,263
Auto Parts - 0.73%
Allison Transmission, Inc.
3.06% due 08/07/2014 (b)			8,228,189		7,024,816
Auto Services - 0.01%
Penhall Holdings, PIK
9.995% due 04/01/2012 (b)			3,310,854		99,326
Automobiles - 0.13%
Ford Motor Company, Tranche B
3.28% due 11/29/2013 (b)			1,490,526		1,291,540
Banking - 0.12%
HSBC Bank PLC
8.90% due 12/20/2010 (b)			52,153,000		1,148,618
Business Services - 0.04%
Rental Service Corp., 2nd Lien
3.79% due 12/01/2013 (b)			500,000		428,125
Crude Petroleum & Natural Gas - 0.66%
Turbo Beta, Ltd.
14.50% due 03/15/2018 (b)			7,841,091		6,410,092
Domestic Oil - 0.32%
Ashmore Energy
3.287% due 03/30/2014 (b)			3,438,513		3,094,662
Financial Services - 0.43%
CIT Group, Inc.
0.00% due 01/18/2012 (m)			2,000,000		2,092,500
Hawker Beechcraft Acquisition Company LLC
2.285% due 03/26/2014 (b)			2,748,844		2,049,035
					4,141,535
Gas & Pipeline Utilities - 0.15%
Stallion Oilfield Services
7.5069% due 07/31/2012 (b)			4,200,000		1,399,998
Healthcare Services - 0.52%
Iasis Holdco, Inc., PIK
6.2894% due 06/15/2014 (b)			6,081,983		5,048,046
Publishing - 0.68%
Idearc, Inc.
2.48% due 11/01/2014 (b)			3,180,527		1,460,393
Newsday LLC
9.75% due 07/15/2013 (b)			1,000,000		1,017,500
9.75% due 08/01/2013 (b)			4,000,000		4,070,000
					6,547,893
TOTAL TERM LOANS (Cost $49,933,203)				$	39,430,545
WARRANTS - 0.01%
Banking - 0.00%
CNB Capital Trust I
(Expiration Date 03/23/2019) * (f)			51,274		1,361

The accompanying notes are an integral part of the financial statements.

155

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

High Yield Fund (continued)

	Shares or
	Principal
	Amount		Value
WARRANTS (continued)
Crude Petroleum & Natural Gas - 0.00%
Turbo Cayman, Ltd. *		1	$	0
Hotels & Restaurants - 0.00%
Buffets Restaurants Holdings, Inc.
(Expiration Date 04/28/2014) *		4,996		0
Republic of Venezuela - 0.01%
Republic of Venezuela
(Expiration date 04/15/2020; strike price $26.00) *		305,000		76,250
TOTAL WARRANTS (Cost $95,911)			$	77,611
REPURCHASE AGREEMENTS - 2.56%
JPMorgan Chase & Company
Tri-Party Repurchase Agreement dated 08/31/2009 at 0.17% to be repurchased at $24,700,117 on 09/01/2009, collateralized by $25,195,000 Federal Home Loan Mortgage Corp., 0.00% due 09/04/2009 (valued at $25,193,992, including interest)	$	24,700,000	$	24,700,000
TOTAL REPURCHASE AGREEMENTS (Cost $24,700,000)			$	24,700,000
SHORT TERM INVESTMENTS - 0.38%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		367,699	$	3,681,147
TOTAL SHORT TERM INVESTMENTS (Cost $3,680,971)			$	3,681,147
Total Investments (High Yield Fund)
(Cost $1,084,601,094) - 97.51%			$	941,318,771
Other assets and liabilities, net - 2.49%				24,037,492
TOTAL NET ASSETS - 100.00%			$	965,356,263

Index 500 Fund

	Shares or
	Principal
	Amount		Value
COMMON STOCKS - 98.44%
Advertising - 0.18%
Interpublic Group of Companies, Inc. *		97,387	$	612,564
Monster Worldwide, Inc. *		25,660		416,205
Omnicom Group, Inc.		63,279		2,298,294
				3,327,063
Aerospace - 2.06%
Boeing Company		147,833		7,342,865
General Dynamics Corp.		78,379		4,639,253
Goodrich Corp.		25,214		1,390,804
Lockheed Martin Corp.		66,499		4,986,095
Northrop Grumman Corp.		65,849		3,214,090
Raytheon Company		80,222		3,784,874
Rockwell Collins, Inc.		32,243		1,484,468
United Technologies Corp.		191,772		11,383,586
				38,226,035
Agriculture - 0.70%
Archer-Daniels-Midland Company		130,693	$	3,767,879
Monsanto Company		111,099		9,318,984
				13,086,863
Air Travel - 0.07%
Southwest Airlines Company		150,809		1,233,618
Aluminum - 0.13%
Alcoa, Inc. (a)		198,335		2,389,937
Apparel & Textiles - 0.48%
Cintas Corp.		26,749		733,992
Coach, Inc.		64,651		1,828,977
NIKE, Inc., Class B		78,880		4,369,163
Polo Ralph Lauren Corp., Class A		11,508		763,901
VF Corp.		18,014		1,253,054
				8,949,087
Auto Parts - 0.34%
AutoZone, Inc. *		7,348		1,081,993
Genuine Parts Company		32,459		1,202,281
Johnson Controls, Inc.		120,975		2,996,551
O’Reilly Automotive, Inc. *		27,616		1,057,141
				6,337,966
Auto Services - 0.02%
AutoNation, Inc. * (a)		21,993		417,427
Automobiles - 0.41%
Ford Motor Company *		655,145		4,979,102
PACCAR, Inc.		73,933		2,674,157
				7,653,259
Banking - 3.75%
Bank of America Corp.		1,758,939		30,939,737
Bank of New York Mellon Corp.		243,360		7,205,889
BB&T Corp.		138,498		3,869,634
Comerica, Inc.		30,764		820,476
Fifth Third Bancorp		161,842		1,770,551
First Horizon National Corp. *		43,754		585,427
Hudson City Bancorp, Inc.		106,161		1,392,832
Huntington Bancshares, Inc.		110,662		504,619
KeyCorp		176,042		1,172,440
M&T Bank Corp. (a)		16,653		1,028,489
Marshall & Ilsley Corp.		71,723		510,668
Northern Trust Corp.		49,052		2,867,580
PNC Financial Services Group, Inc.		93,700		3,990,683
Regions Financial Corp.		235,131		1,377,868
SunTrust Banks, Inc.		101,499		2,372,032
U.S. Bancorp		386,331		8,738,807
Zions Bancorp (a)		25,340		447,758
				69,595,490
Biotechnology - 1.16%
Amgen, Inc. *		206,090		12,311,817
Biogen Idec, Inc. *		58,742		2,949,436
Cephalon, Inc. * (a)		15,030		855,658
Genzyme Corp. *		54,916		3,059,370
Life Technologies Corp. *		35,558		1,583,398
Millipore Corp. *		11,285		747,405
				21,507,084

The accompanying notes are an integral part of the financial statements.

156

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Index 500 Fund (continued)

	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Broadcasting - 0.35%
CBS Corp., Class B		138,324	$	1,431,653
News Corp., Class A		468,273		5,019,887
				6,451,540
Building Materials & Construction - 0.06%
Masco Corp.		73,143		1,059,111
Business Services - 1.08%
Affiliated Computer Services, Inc., Class A *		19,868		890,086
Automatic Data Processing, Inc.		102,120		3,916,302
Computer Sciences Corp. *		30,841		1,506,583
Convergys Corp. *		24,973		270,707
Dun & Bradstreet Corp.		10,825		790,658
Equifax, Inc.		25,698		710,293
Fiserv, Inc. *		31,675		1,528,319
Fluor Corp.		36,610		1,936,669
H & R Block, Inc.		69,147		1,194,860
Iron Mountain, Inc. *		36,665		1,073,918
Jacobs Engineering Group, Inc. *		25,132		1,105,305
Moody’s Corp.		38,865		1,058,683
Paychex, Inc.		65,374		1,849,431
R.R. Donnelley & Sons Company		41,779		745,337
Robert Half International, Inc.		31,108		817,829
Total Systems Services, Inc.		40,136		612,475
				20,007,455
Cable & Television - 0.97%
Comcast Corp., Class A		586,974		8,992,442
DIRECTV Group, Inc. * (a)		106,701		2,641,917
Scripps Networks Interactive, Inc., Class A		18,417		598,000
Time Warner Cable, Inc. *		71,725		2,648,087
Viacom, Inc., Class B *		123,454		3,091,288
				17,971,734
Cellular Communications - 0.20%
MetroPCS Communications, Inc. *		51,563		410,442
Motorola, Inc. *		466,669		3,350,683
				3,761,125
Chemicals - 1.30%
Air Products & Chemicals, Inc.		42,715		3,204,906
CF Industries Holdings, Inc.		9,853		804,596
Dow Chemical Company		232,809		4,956,504
E.I. Du Pont de Nemours & Company		183,944		5,873,332
Eastman Chemical Company		14,788		771,342
FMC Corp.		14,795		705,722
PPG Industries, Inc.		33,488		1,855,235
Praxair, Inc.		62,592		4,795,799
Sigma-Aldrich Corp.		24,854		1,262,583
				24,230,019
Coal - 0.20%
CONSOL Energy, Inc.		36,773		1,375,678
Massey Energy Company		17,402		471,246
Peabody Energy Corp.		54,426		1,778,642
				3,625,566
Commercial Services - 0.03%
CB Richard Ellis Group, Inc. *		48,168		570,309
Computer Services - 0.08%
NetApp, Inc. * (a)		67,330	$	1,531,757
Computers & Business Equipment - 7.14%
Apple, Inc. *		181,608		30,548,282
Cisco Systems, Inc. *		1,174,178		25,362,245
Cognizant Technology Solutions Corp., Class A *		59,467		2,074,209
Dell, Inc. *		354,019		5,604,121
EMC Corp. *		409,791		6,515,677
Hewlett-Packard Company		485,776		21,806,484
International Business Machines Corp.		268,999		31,755,332
Juniper Networks, Inc. *		106,501		2,456,978
Lexmark International, Inc. *		15,895		299,462
Pitney Bowes, Inc.		42,015		939,035
SanDisk Corp. *		46,181		817,404
Sun Microsystems, Inc. *		151,916		1,409,780
Western Digital Corp. *		45,317		1,553,467
Xerox Corp.		176,046		1,522,798
				132,665,274
Construction & Mining Equipment - 0.19%
National Oilwell Varco, Inc. *		85,124		3,094,257
Rowan Companies, Inc. *		23,019		476,724
				3,570,981
Construction Materials - 0.13%
The Sherwin-Williams Company		20,023		1,205,385
Vulcan Materials Company (a)		24,808		1,241,392
				2,446,777
Containers & Glass - 0.21%
Ball Corp.		19,133		927,185
Bemis Company, Inc.		21,909		582,560
Owens-Illinois, Inc. *		34,258		1,162,717
Pactiv Corp. *		26,858		667,421
Sealed Air Corp.		32,288		610,566
				3,950,449
Cosmetics & Toiletries - 2.63%
Avon Products, Inc.		86,906		2,769,694
Colgate-Palmolive Company		101,697		7,393,372
Estee Lauder Companies, Inc., Class A		23,624		846,920
International Flavors & Fragrances, Inc.		16,020		570,632
Kimberly-Clark Corp.		84,321		5,098,048
Procter & Gamble Company		593,351		32,106,223
				48,784,889
Crude Petroleum & Natural Gas - 2.66%
Apache Corp.		68,234		5,796,478
Cabot Oil & Gas Corp.		21,098		743,705
Chesapeake Energy Corp.		114,724		2,620,296
Devon Energy Corp.		90,366		5,546,665
EOG Resources, Inc.		50,950		3,668,400
EQT Corp.		26,647		1,057,087
Hess Corp.		57,921		2,930,223
Marathon Oil Corp.		144,083		4,447,842
Noble Energy, Inc.		35,289		2,133,573
Occidental Petroleum Corp.		165,010		12,062,231
Pioneer Natural Resources Company		23,204		671,988
Southwestern Energy Company *		69,955		2,578,541

The accompanying notes are an integral part of the financial statements.

157

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Index 500 Fund (continued)

	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas
(continued)
Sunoco, Inc.		23,797	$	640,139
XTO Energy, Inc.		118,010		4,555,186
				49,452,354
Domestic Oil - 0.12%
Denbury Resources, Inc. *		50,660		771,045
Range Resources Corp.		31,869		1,541,504
				2,312,549
Educational Services - 0.11%
Apollo Group, Inc., Class A *		21,936		1,421,891
DeVry, Inc.		12,538		640,692
				2,062,583
Electrical Equipment - 0.43%
Cooper Industries, Ltd., Class A		33,890		1,092,952
Emerson Electric Company		152,972		5,640,078
FLIR Systems, Inc. *		30,586		704,090
Molex, Inc.		28,219		513,868
				7,950,988
Electrical Utilities - 2.92%
AES Corp. *		135,714		1,855,210
Allegheny Energy, Inc.		34,485		910,749
Ameren Corp.		43,475		1,172,521
American Electric Power Company, Inc.		97,055		3,050,439
CenterPoint Energy, Inc.		71,096		881,590
CMS Energy Corp.		46,176		619,220
Consolidated Edison, Inc.		55,860		2,245,013
Constellation Energy Group, Inc.		40,550		1,283,407
Dominion Resources, Inc.		120,099		3,972,875
DTE Energy Company		33,361		1,160,296
Dynegy, Inc., Class A *		103,116		195,920
Edison International		66,326		2,215,952
Entergy Corp.		39,921		3,153,759
Exelon Corp.		134,104		6,707,882
FirstEnergy Corp.		62,056		2,800,587
FPL Group, Inc.		83,626		4,698,109
Integrys Energy Group, Inc.		15,558		534,106
Northeast Utilities		35,651		848,137
Pepco Holdings, Inc.		44,784		641,755
PG&E Corp.		74,989		3,043,804
Pinnacle West Capital Corp.		20,578		677,222
PPL Corp.		76,553		2,250,658
Quanta Services, Inc. *		39,692		877,987
Southern Company		159,281		4,969,567
Teco Energy, Inc. (a)		43,336		577,236
Wisconsin Energy Corp.		23,800		1,082,186
Xcel Energy, Inc.		92,760		1,832,010
				54,258,197
Electronics - 0.51%
Agilent Technologies, Inc. *		69,897		1,794,955
Amphenol Corp., Class A		34,870		1,219,055
Harman International Industries, Inc. *		14,113		423,249
Jabil Circuit, Inc.		43,517		476,511
L-3 Communications Holdings, Inc.		23,727		1,765,289
Thermo Fisher Scientific, Inc. *		85,157	$	3,849,948
				9,529,007
Energy - 0.52%
Duke Energy Corp.		262,021		4,058,706
Progress Energy, Inc.		56,804		2,245,462
SCANA Corp.		24,800		860,064
Sempra Energy		49,731		2,495,004
				9,659,236
Financial Services - 7.89%
American Express Company		241,726		8,175,173
Ameriprise Financial, Inc.		51,875		1,557,806
Capital One Financial Corp.		91,985		3,430,121
Charles Schwab Corp.		191,166		3,452,458
Citigroup, Inc. *		2,309,751		11,548,755
CME Group, Inc. (a)		13,509		3,931,659
Discover Financial Services		109,044		1,499,355
E*TRADE Financial Corp. * (a)		227,070		399,643
Federated Investors, Inc., Class B		18,218		478,223
Fidelity National Information Services, Inc.		38,934		956,219
Franklin Resources, Inc.		30,669		2,862,338
Goldman Sachs Group, Inc.		102,482		16,956,672
IntercontinentalExchange, Inc. *		14,826		1,390,679
Invesco, Ltd.		83,733		1,737,460
Janus Capital Group, Inc.		36,527		464,623
JPMorgan Chase & Company		794,166		34,514,454
Legg Mason, Inc.		32,920		946,779
Leucadia National Corp. * (a)		36,900		917,703
MasterCard, Inc., Class A		14,748		2,988,387
Morgan Stanley		275,165		7,968,778
NASDAQ OMX Group, Inc. *		27,980		614,161
NYSE Euronext		52,929		1,500,008
People’s United Financial, Inc.		70,902		1,138,686
SLM Corp. *		95,168		846,995
State Street Corp.		100,513		5,274,922
T. Rowe Price Group, Inc. (a)		52,008		2,357,003
Wells Fargo & Company		947,832		26,084,337
Western Union Company		142,762		2,575,427
				146,568,824
Food & Beverages - 3.86%
Campbell Soup Company		40,649		1,274,753
Coca-Cola Enterprises, Inc.		64,555		1,304,656
ConAgra Foods, Inc.		91,044		1,869,133
Dean Foods Company *		36,035		653,675
Dr Pepper Snapple Group, Inc. *		51,679		1,366,393
General Mills, Inc.		66,971		4,000,178
H.J. Heinz Company		64,050		2,465,925
Hershey Company		33,738		1,323,542
Hormel Foods Corp.		14,212		525,133
J.M. Smucker Company		24,109		1,260,177
Kellogg Company		51,396		2,420,238
Kraft Foods, Inc., Class A		299,809		8,499,585
McCormick & Company, Inc.		26,526		863,952
Pepsi Bottling Group, Inc.		27,818		993,937
PepsiCo, Inc.		316,919		17,959,800
Sara Lee Corp.		141,611		1,372,211

The accompanying notes are an integral part of the financial statements.

158

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Index 500 Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Food & Beverages (continued)
Sysco Corp.		120,086	$	3,060,992
The Coca-Cola Company		405,291		19,766,042
Tyson Foods, Inc., Class A		61,492		737,289
				71,717,611
Forest Products - 0.09%
Weyerhaeuser Company		43,026		1,608,742
Furniture & Fixtures - 0.03%
Leggett & Platt, Inc.		31,912		582,394
Gas & Pipeline Utilities - 0.43%
El Paso Corp.		142,705		1,317,167
Nicor, Inc.		9,204		333,369
NiSource, Inc.		55,899		738,426
Questar Corp.		35,433		1,196,218
Spectra Energy Corp.		131,299		2,471,047
Williams Companies, Inc.		118,091		1,941,416
				7,997,643
Healthcare Products - 3.74%
Baxter International, Inc.		123,166		7,010,609
Becton, Dickinson & Company		48,762		3,394,810
Boston Scientific Corp. *		306,662		3,603,278
C.R. Bard, Inc.		20,215		1,628,925
DENTSPLY International, Inc.		30,236		1,019,256
Intuitive Surgical, Inc. *		7,706		1,716,203
Johnson & Johnson		560,956		33,904,181
Medtronic, Inc.		227,639		8,718,574
Patterson Companies, Inc. * (a)		18,621		507,050
St. Jude Medical, Inc. *		70,508		2,717,378
Stryker Corp.		48,509		2,011,183
Varian Medical Systems, Inc. *		25,520		1,099,146
Zimmer Holdings, Inc. *		43,788		2,073,362
				69,403,955
Healthcare Services - 1.82%
Cardinal Health, Inc.		73,299		2,534,680
Coventry Health Care, Inc. *		30,217		659,637
DaVita, Inc. *		21,051		1,088,547
Express Scripts, Inc. *		55,203		3,986,761
Humana, Inc. * (a)		34,530		1,232,721
IMS Health, Inc.		37,002		512,848
Laboratory Corp. of America Holdings *		22,047		1,538,660
McKesson Corp.		55,253		3,141,686
Medco Health Solutions, Inc. *		98,197		5,422,438
Quest Diagnostics, Inc.		30,567		1,649,395
UnitedHealth Group, Inc.		242,151		6,780,228
WellPoint, Inc. *		98,659		5,214,128
				33,761,729
Holdings Companies/Conglomerates - 0.05%
Textron, Inc.		54,718		840,468
Homebuilders - 0.14%
D.R. Horton, Inc.		56,128		752,676
KB Home		15,060		274,243
Lennar Corp., Class A		31,393		475,604
Pulte Homes, Inc. *		89,820		1,147,900
				2,650,423
Hotels & Restaurants - 1.26%
Darden Restaurants, Inc.		27,915	$	919,241
Marriott International, Inc., Class A		60,659		1,449,739
McDonald’s Corp.		224,589		12,630,885
Starbucks Corp. *		149,808		2,844,854
Starwood Hotels & Resorts Worldwide, Inc.		37,998		1,131,580
Wyndham Worldwide Corp.		36,252		549,218
Wynn Resorts, Ltd. * (a)		13,779		745,857
Yum! Brands, Inc.		93,966		3,218,336
				23,489,710
Household Appliances - 0.12%
Black & Decker Corp.		12,239		539,985
Stanley Works		16,098		658,891
Whirlpool Corp.		15,029		965,012
				2,163,888
Household Products - 0.20%
Clorox Company		28,308		1,672,720
Fortune Brands, Inc.		30,576		1,217,230
Newell Rubbermaid, Inc.		56,512		786,647
				3,676,597
Industrial Machinery - 1.16%
Cameron International Corp. *		44,170		1,577,311
Caterpillar, Inc. (a)		122,491		5,550,067
Cummins, Inc.		41,084		1,861,927
Deere & Company		86,060		3,752,216
Dover Corp.		37,868		1,309,854
Flowserve Corp.		11,406		983,767
FMC Technologies, Inc. *		25,159		1,200,084
ITT Corp.		37,050		1,855,464
Pall Corp.		24,007		713,728
Parker-Hannifin Corp.		32,675		1,589,966
W.W. Grainger, Inc.		12,668		1,108,070
				21,502,454
Industrials - 1.66%
Fastenal Company (a)		26,306		952,277
General Electric Company		2,155,739		29,964,772
				30,917,049
Insurance - 2.90%
Aetna, Inc.		90,976		2,592,816
AFLAC, Inc.		95,158		3,865,318
Allstate Corp.		109,189		3,209,065
American International Group, Inc. * (a)		27,389		1,241,543
Aon Corp.		56,349		2,353,134
Assurant, Inc.		23,971		717,931
Chubb Corp.		71,680		3,540,275
CIGNA Corp.		55,529		1,634,219
Cincinnati Financial Corp.		33,093		851,152
Genworth Financial, Inc., Class A *		88,188		931,265
Hartford Financial Services Group, Inc.		66,249		1,571,426
Lincoln National Corp.		60,275		1,521,341
Loews Corp.		73,531		2,511,084
Marsh & McLennan Companies, Inc.		106,374		2,504,044
MBIA, Inc. *		34,694		233,144
MetLife, Inc.		166,626		6,291,798
Principal Financial Group, Inc.		63,244		1,796,130

The accompanying notes are an integral part of the financial statements.

159

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Index 500 Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Insurance (continued)
Progressive Corp. *		138,635	$	2,290,250
Prudential Financial, Inc.		94,225		4,765,901
The Travelers Companies, Inc.		119,177		6,008,904
Torchmark Corp.		16,843		717,680
Unum Group		67,438		1,519,378
XL Capital, Ltd., Class A (a)		69,641		1,208,271
				53,876,069
International Oil - 6.43%
Anadarko Petroleum Corp.		101,621		5,372,702
Chevron Corp.		408,095		28,542,164
ConocoPhillips Company		301,603		13,581,183
Exxon Mobil Corp.		993,371		68,691,605
Murphy Oil Corp.		38,839		2,213,823
Nabors Industries, Ltd. *		57,619		1,018,704
				119,420,181
Internet Content - 1.44%
Google, Inc., Class A *		48,880		22,566,430
Yahoo!, Inc. *		283,963		4,148,699
				26,715,129
Internet Retail - 0.60%
Amazon.com, Inc. *		65,598		5,325,902
eBay, Inc. *		220,008		4,870,977
Expedia, Inc. *		42,832		987,277
				11,184,156
Internet Software - 0.41%
Akamai Technologies, Inc. *		35,182		620,611
Electronic Arts, Inc. *		65,745		1,197,874
McAfee, Inc. *		31,630		1,258,241
Salesforce.com, Inc. * (a)		21,621		1,121,481
Symantec Corp. *		166,487		2,517,283
VeriSign, Inc. *		39,256		831,835
				7,547,325
Leisure Time - 0.74%
Carnival Corp. *		89,192		2,608,866
International Game Technology		60,318		1,261,853
Walt Disney Company		377,982		9,842,651
				13,713,370
Life Sciences - 0.08%
PerkinElmer, Inc.		23,732		433,109
Waters Corp. *		19,625		986,745
				1,419,854
Liquor - 0.16%
Brown Forman Corp., Class B		19,876		888,855
Constellation Brands, Inc., Class A *		40,040		592,191
Molson Coors Brewing Company, Class B		30,348		1,437,888
				2,918,934
Manufacturing - 1.44%
3M Company		141,357		10,191,840
Danaher Corp.		51,910		3,151,456
Eaton Corp.		33,711		1,818,708
Harley-Davidson, Inc.		47,728		1,144,517
Honeywell International, Inc.		151,427		5,566,457
Manufacturing (continued)
Illinois Tool Works, Inc.		78,268	$	3,273,168
Rockwell Automation, Inc.		28,872		1,208,293
Snap-on, Inc.		11,727		437,652
				26,792,091
Medical-Hospitals - 0.02%
Tenet Healthcare Corp. *		84,999		396,095
Metal & Metal Products - 0.15%
Precision Castparts Corp.		28,512		2,602,575
Titanium Metals Corp. *		17,328		142,436
				2,745,011
Mining - 0.50%
Freeport-McMoRan Copper & Gold, Inc., Class B *		83,822		5,279,110
Newmont Mining Corp.		99,633		4,004,250
				9,283,360
Multimedia - 0.37%
Time Warner, Inc.		243,564		6,797,871
Office Furnishings & Supplies - 0.05%
Avery Dennison Corp.		22,950		709,155
Office Depot, Inc. *		55,922		291,913
				1,001,068
Paper - 0.20%
International Paper Company		87,985		2,019,256
MeadWestvaco Corp.		34,831		764,540
Plum Creek Timber Company, Inc. (a)		33,143		1,003,902
				3,787,698
Petroleum Services - 1.47%
Baker Hughes, Inc.		63,067		2,172,658
BJ Services Company		59,457		954,880
Diamond Offshore Drilling, Inc. (a)		14,148		1,265,114
ENSCO International, Inc.		28,867		1,065,192
Halliburton Company		182,627		4,330,086
Schlumberger, Ltd.		243,555		13,687,791
Smith International, Inc.		44,645		1,230,863
Tesoro Corp. (a)		28,166		396,577
Valero Energy Corp.		113,249		2,122,286
				27,225,447
Pharmaceuticals - 6.06%
Abbott Laboratories		314,612		14,229,901
Allergan, Inc.		62,601		3,500,648
AmerisourceBergen Corp.		61,476		1,310,054
Bristol-Myers Squibb Company		403,252		8,923,967
Celgene Corp. *		93,702		4,888,433
Eli Lilly & Company		205,838		6,887,339
Forest Laboratories, Inc. *		61,401		1,797,207
Gilead Sciences, Inc. *		184,517		8,314,336
Hospira, Inc. *		32,669		1,277,031
King Pharmaceuticals, Inc. *		50,479		523,972
Merck & Company, Inc. (a)		429,266		13,921,096
Mylan, Inc. * (a)		62,098		910,978
Pfizer, Inc. (a)		1,373,698		22,940,757
Schering-Plough Corp.		331,483		9,341,191
Watson Pharmaceuticals, Inc. *		21,459		757,288

The accompanying notes are an integral part of the financial statements.

160

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Index 500 Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Pharmaceuticals (continued)
Wyeth		271,475	$	12,990,079
				112,514,277
Photography - 0.02%
Eastman Kodak Company * (a)		54,596		290,451
Publishing - 0.19%
Gannett Company, Inc. (a)		47,317		408,819
McGraw-Hill Companies, Inc.		64,023		2,151,813
Meredith Corp.		7,328		202,839
The New York Times Company, Class A * (a)		23,739		180,654
The Washington Post Company, Class B		1,225		532,091
				3,476,216
Railroads & Equipment - 0.95%
Burlington Northern Santa Fe Corp. (a)		56,682		4,705,740
CSX Corp.		79,690		3,386,825
Norfolk Southern Corp.		74,719		3,427,360
Union Pacific Corp.		102,622		6,137,822
				17,657,747
Real Estate - 1.01%
Apartment Investment & Management Company, Class A, REIT (a)		23,839		290,121
Avalon Bay Communities, Inc., REIT		16,265		1,047,954
Boston Properties, Inc., REIT		28,198		1,708,235
Equity Residential, REIT		55,747		1,522,451
HCP, Inc., REIT		58,623		1,669,583
Health Care, Inc., REIT		22,623		966,228
Host Hotels & Resorts, Inc., REIT *		122,389		1,220,218
Kimco Realty Corp., REIT		65,889		826,907
ProLogis, REIT (a)		90,104		1,001,956
Public Storage, Inc., REIT		25,533		1,801,353
Simon Property Group, Inc., REIT		56,536		3,596,820
Ventas, Inc., REIT		31,861		1,249,270
Vornado Realty Trust, REIT		32,315		1,858,759
				18,759,855
Retail Grocery - 0.32%
Safeway, Inc. (a)		86,701		1,651,654
SUPERVALU, Inc.		43,075		618,126
The Kroger Company		132,798		2,867,109
Whole Foods Market, Inc. * (a)		28,589		831,368
				5,968,257
Retail Trade - 5.03%
Abercrombie & Fitch Company, Class A (a)		17,889		577,636
Bed Bath & Beyond, Inc. *		52,860		1,928,333
Best Buy Company, Inc.		69,489		2,521,061
Big Lots, Inc. *		16,809		427,285
Costco Wholesale Corp.		88,356		4,504,389
CVS Caremark Corp.		296,376		11,120,028
Family Dollar Stores, Inc.		28,548		864,433
GameStop Corp., Class A *		33,512		797,586
Home Depot, Inc. (a)		345,315		9,423,646
J.C. Penney Company, Inc.		48,005		1,442,070
Kohl’s Corp. *		62,168		3,207,247
Limited Brands, Inc.		54,988		820,421
Lowe’s Companies, Inc.		300,579		6,462,448
Macy’s, Inc.		85,615		1,328,745
Nordstrom, Inc. (a)		32,593	$	913,908
RadioShack Corp.		25,473		385,406
Sears Holdings Corp. * (a)		10,987		697,125
Staples, Inc.		145,622		3,146,891
Target Corp.		153,143		7,197,721
The Gap, Inc.		93,623		1,839,692
Tiffany & Company (a)		25,258		918,886
TJX Companies, Inc.		84,184		3,026,415
Walgreen Company		201,884		6,839,830
Wal-Mart Stores, Inc.		454,294		23,109,936
				93,501,138
Sanitary Services - 0.38%
Ecolab, Inc.		34,181		1,445,515
Republic Services, Inc.		65,546		1,678,633
Stericycle, Inc. *		17,287		856,052
Waste Management, Inc.		100,158		2,997,729
				6,977,929
Semiconductors - 2.66%
Advanced Micro Devices, Inc. *		114,110		497,520
Altera Corp.		59,733		1,147,471
Analog Devices, Inc.		59,290		1,674,942
Applied Materials, Inc.		271,368		3,576,630
Broadcom Corp., Class A *		87,013		2,475,520
Intel Corp.		1,136,949		23,102,804
KLA-Tencor Corp.		34,584		1,079,021
Linear Technology Corp. (a)		45,247		1,202,213
LSI Logic Corp. *		132,093		688,204
MEMC Electronic Materials, Inc. *		45,496		725,661
Microchip Technology, Inc. (a)		37,226		988,350
Micron Technology, Inc. *		172,369		1,270,360
National Semiconductor Corp.		39,732		602,734
Novellus Systems, Inc. *		19,880		380,901
NVIDIA Corp. *		111,191		1,614,493
QLogic Corp. *		24,191		382,460
Teradyne, Inc. *		35,240		290,730
Texas Instruments, Inc.		259,239		6,374,687
Xilinx, Inc.		56,090		1,247,442
				49,322,143
Software - 3.69%
Adobe Systems, Inc. *		106,618		3,349,938
Autodesk, Inc. *		46,498		1,089,448
BMC Software, Inc. *		37,645		1,342,044
CA, Inc.		80,272		1,789,263
Citrix Systems, Inc. *		36,840		1,314,451
Compuware Corp. *		49,258		355,150
Intuit, Inc. *		65,767		1,826,350
Microsoft Corp.		1,558,090		38,406,919
Novell, Inc. *		70,271		305,679
Oracle Corp.		771,007		16,861,923
Red Hat, Inc. *		38,467		883,202
Teradata Corp. *		35,157		946,778
				68,471,145
Steel - 0.28%
AK Steel Holding Corp.		22,246		452,039

The accompanying notes are an integral part of the financial statements.

161

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Index 500 Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Steel (continued)
Allegheny Technologies, Inc.		19,954	$	606,003
Nucor Corp.		63,974		2,849,402
United States Steel Corp.		29,180		1,277,500
				5,184,944
Telecommunications Equipment &
Services - 1.29%
American Tower Corp., Class A *		80,959		2,562,352
Ciena Corp. * (a)		18,556		248,650
Corning, Inc.		316,325		4,770,181
JDS Uniphase Corp. *		44,879		308,319
QUALCOMM, Inc.		336,916		15,639,641
Tellabs, Inc. *		80,567		510,795
				24,039,938
Telephone - 3.04%
AT&T, Inc.		1,201,074		31,287,978
CenturyTel, Inc.		60,321		1,944,146
Frontier Communications Corp.		63,587		452,103
Harris Corp.		26,951		936,008
Qwest Communications International, Inc. (a)		301,157		1,081,154
Sprint Nextel Corp. *		584,513		2,139,318
Verizon Communications, Inc.		578,261		17,949,221
Windstream Corp.		88,910		761,959
				56,551,887
Tires & Rubber - 0.04%
Goodyear Tire & Rubber Company *		49,229		811,786
Tobacco - 1.62%
Altria Group, Inc.		420,914		7,694,308
Lorillard, Inc.		34,234		2,491,208
Philip Morris International, Inc.		399,322		18,253,009
Reynolds American, Inc.		34,398		1,572,332
				30,010,857
Toys, Amusements & Sporting Goods - 0.11%
Hasbro, Inc.		25,335		719,261
Mattel, Inc.		72,988		1,313,054
				2,032,315
Transportation - 0.18%
C.H. Robinson Worldwide, Inc.		34,516		1,941,870
Expeditors International of Washington, Inc.		43,227		1,411,794
				3,353,664
Trucking & Freight - 0.84%
FedEx Corp.		63,384		4,355,115
Ryder Systems, Inc.		11,378		432,364
United Parcel Service, Inc., Class B		202,562		10,828,964
				15,616,443
Utility Service - 0.18%
Public Service Enterprise Group, Inc.		103,004		3,262,137
TOTAL COMMON STOCKS (Cost $1,681,849,917)			$	1,828,084,004
SHORT TERM INVESTMENTS - 5.15%
Federal Home Loan Bank Discount Notes
0.08% due 09/01/2009	$	20,000,000	$	20,000,000
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		7,551,700	$	75,602,338
TOTAL SHORT TERM INVESTMENTS (Cost $95,565,953)			$	95,602,338
REPURCHASE AGREEMENTS - 0.10%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,860,004 on 09/01/2009, collateralized by $1,900,000 U.S. Treasury Bills, 0.00% due 02/25/2010 (valued at $1,897,720, including interest)	$	1,860,000	$	1,860,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,860,000)			$	1,860,000
Total Investments (Index 500 Fund) (Cost $1,779,275,870) - 103.69%			$	1,925,546,342
Other assets and liabilities, net - (3.69)%				(68,449,593	)
TOTAL NET ASSETS - 100.00%			$	1,857,096,749

International Equity Index Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 92.14%
Australia - 5.08%
AGL Energy, Ltd.		10,310	$	121,861
Alumina, Ltd.		67,437		92,247
Amcor, Ltd.		26,712		130,252
AMP, Ltd.		43,176		231,892
Aristocrat Leisure, Ltd.		9,625		37,404
Arrow Energy NL *		10,452		40,144
Asciano Group *		70,683		94,544
Australia and New Zealand Banking Group, Ltd.		54,694		983,453
Australian Stock Exchange, Ltd.		3,952		110,485
Axa Asia Pacific Holdings, Ltd.		20,357		73,908
Bendigo and Adelaide Bank, Ltd.		4,993		35,006
Bendigo and Adelaide Bank, Ltd. *		416		2,866
BHP Billiton, Ltd.		78,158		2,440,720
Billabong International, Ltd.		4,665		41,358
Bluescope Steel, Ltd.		40,807		97,748
Boral, Ltd. (a)		11,639		56,686
Brambles, Ltd.		29,655		186,059
Caltex Australia, Ltd.		3,106		32,337
Centro Properties Group, Ltd. *		20,831		2,976
Centro Retail Group		32,506		3,401
CFS Gandel Retail Trust		34,088		54,566
Coca-Cola Amatil, Ltd.		11,279		94,444
Cochlear, Ltd.		1,076		51,095
Commonwealth Bank of Australia, Ltd.		34,390		1,335,995
Computershare, Ltd.		9,718		82,804
Crown, Ltd.		9,071		60,474
CSL, Ltd.		13,436		365,189
CSR, Ltd.		28,285		48,723

The accompanying notes are an integral part of the financial statements.

162

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Dexus Property Group, REIT		91,949	$	57,702
Energy Resources of Australia, Ltd.		975		21,323
Fortescue Metals Group, Ltd. *		24,928		92,702
Foster’s Group, Ltd.		41,679		192,960
General Property Trust, Ltd.		181,302		93,938
Goodman Fielder, Ltd.		25,715		33,356
Harvey Norman Holding, Ltd.		11,715		38,863
Incitec Pivot, Ltd.		31,869		80,510
James Hardie Industries, Ltd. *		6,969		40,477
John Fairfax Holdings, Ltd. (a)		52,429		65,076
Leighton Holdings, Ltd.		2,885		89,995
Lend Lease Corp.		8,177		65,125
Lion Nathan, Ltd.		6,289		62,769
Macquarie Airports, Ltd.		17,250		37,260
Macquarie Group, Ltd.		6,632		284,360
Macquarie Infrastructure Group		51,469		57,819
Metcash, Ltd.		14,758		53,382
Mirvac Group, Ltd.		50,913		63,902
National Australia Bank, Ltd.		44,917		1,080,473
Newcrest Mining, Ltd.		10,642		270,422
NRMA Insurance Group, Ltd.		43,339		131,426
Nufarm, Ltd.		3,907		35,319
OneSteel, Ltd.		29,423		80,707
Orica, Ltd.		7,846		149,627
Origin Energy, Ltd.		19,171		247,252
Oxiana, Ltd. *		71,949		64,817
Paladin Resources, Ltd. *		11,147		43,256
Perpetual Trust of Australia, Ltd.		899		31,235
Qantas Airways, Ltd.		21,543		46,304
QBE Insurance Group, Ltd. (a)		22,121		427,482
Rio Tinto, Ltd.		9,782		460,590
Santos, Ltd.		17,926		239,119
Sims Group, Ltd.		2,856		55,848
Sonic Healthcare, Ltd.		7,353		86,739
SP Ausnet		47,051		30,546
Stockland Company, Ltd.		48,595		154,598
Suncorp-Metway, Ltd. (a)		28,035		185,205
TABCORP Holdings, Ltd.		12,889		73,053
Tattersall’s, Ltd.		22,779		47,732
Telstra Corp., Ltd.		97,224		267,824
Toll Holdings, Ltd.		13,076		88,019
Transurban Group, Ltd. *		24,362		83,151
Virgin Blue Holdings, Ltd. *		12,681		4,174
Wesfarmers, Ltd.		2,960		63,067
Wesfarmers, Ltd.		22,755		482,939
Westfield Group		46,897		499,336
Westpac Banking Corp., Ltd.		67,999		1,399,740
Woodside Petroleum, Ltd.		10,916		450,369
Woolworths, Ltd.		27,678		655,374
WorleyParsons, Ltd.		3,588		85,862
				16,361,761
Austria - 0.23%
Erste Bank der Oesterreichischen Sparkassen AG		4,382		186,950
Oesterreichische Elektrizitaets AG, Class A		1,885		95,864
OMV AG		3,177		125,326
Raiffeisen International Bank Holding AG		964	$	50,996
Telekom Austria AG		8,469		148,061
Voestalpine AG		3,165		102,014
Wiener Staedtische Allgemeine Versicherung AG		654		34,032
				743,243
Belgium - 0.72%
Anheuser-Busch InBev NV		17,141		740,427
Anheuser-Busch InBev NV *		9,984		57
Belgacom SA		3,495		131,118
Colruyt SA		402		92,246
Compagnie Nationale A Portefeuille, ADR		776		40,311
Delhaize Group		2,489		167,103
Dexia SA *		13,745		117,789
Fortis Group SA *		58,185		249,397
Groupe Bruxelles Lambert SA		1,716		150,474
KBC Ancora, ADR *		3,251		65,007
KBC Bancassurance Holding NV *		5,137		193,183
Mobistar SA		531		34,222
Solvay SA		1,371		144,443
UCB SA		2,531		98,519
Umicore		3,377		91,688
				2,315,984
Bermuda - 0.07%
China Yurun Food Group, Ltd		38,000		65,741
Chinese Estates Holdings, Ltd.		14,561		26,336
SeaDrill, Ltd., GDR		8,231		147,329
				239,406
Brazil - 1.33%
All America Latina Logistica SA		9,200		66,485
Aracruz Celulose SA, SADR *		845		17,846
B2W Companhia Global Do Varejo		2,100		54,174
Banco do Brasil SA		6,800		94,385
Banco Nossa Caixa SA		532		21,377
BM&F BOVESPA SA		29,234		180,240
Brasil Telecom Participacoes SA, ADR *		686		29,868
Centrais Eletricas Brasileiras SA, ADR, Class B *		2,071		27,244
Centrais Eletricas Brasileiras SA *		5,000		73,089
Cia de Concessoes Rodoviarias, ADR		2,600		42,834
Cia de Saneamento Basico do Estado de Sao Paulo *		2,143		39,456
Cia Energetica de Minas Gerais, ADR		589		8,605
Companhia Brasileira de Distribuicao Grupo Pao de Acucar, ADR		436		21,264
Companhia Brasileira de Meios de Pagamento		13,824		120,585
Companhia Siderurgica Nacional SA, SADR		3,716		96,950
Companhia Siderurgica Nacional SA		5,866		152,571
Companhia Vale do Rio Doce		32,406		630,685
Cosan SA Industria e Comercio *		3,405		38,138
CPFL Energia SA		2,100		37,048
Cyrela Brazil Realty SA		4,000		50,279
EDP - Energias do Brasil SA		2,700		40,542
Empresa Brasileira de Aeronautica SA, ADR *		1,575		33,453
Empresa Brasileira de Aeronautica SA *		13,400		71,952

The accompanying notes are an integral part of the financial statements.

163

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Brazil (continued)
Gerdau SA, SADR		92	$	1,081
Gerdau SA		1,479		13,380
Global Village Telecom Holding SA *		2,699		48,117
JBS SA		13,126		54,462
LLX Logistica SA *		12,720		34,758
MRV Engenharia e Participacoes SA		2,629		47,622
Natura Cosmeticos SA		2,200		35,591
OGX Petroleo e Gas Participacoes SA		300		163,156
Perdigao SA *		2,400		53,483
Petroleo Brasileiro SA, ADR		1,964		77,853
Petroleo Brasileiro SA, SADR		3,282		108,962
Petroleo Brasileiro SA		53,184		1,059,052
Porto Seguro SA *		964		8,849
Redecard SA		7,099		97,180
Souza Cruz SA		1,800		57,151
Suzano Papel e Celulose SA *		4,700		44,389
Tele Norte Leste Participacoes SA, ADR		5,457		86,985
Tele Norte Leste Participacoes SA		2,500		46,838
Tractebel Energia SA		2,000		21,171
Ultrapar Participacoes SA		1,500		54,868
Usinas Siderurgicas de Minas Gerais SA, SADR		1,235		29,224
Usinas Siderurgicas de Minas Gerais SA		2,800		66,022
Vale SA, SADR		300		5,163
Vale SA		3,177		61,030
Vivo Participacoes SA		802		18,254
Votorantim Celulose e Papel SA, SADR *		1,081		17,091
Votorantim Celulose e Papel SA *		2,366		36,921
				4,297,723
Bulgaria - 0.00%
BGP Holdings PLC *		181,302		0
Canada - 6.37%
Agnico-Eagle Mines, Ltd.		3,400		195,009
Agrium, Inc.		3,400		162,585
Alimentation Couche Tard, Inc.		2,200		37,700
ARC Energy Trust		2,700		42,865
Astral Media, Inc.		700		20,238
Bank of Montreal		12,200		590,637
Bank of Nova Scotia		22,500		942,544
Barrick Gold Corp.		19,708		680,126
BCE, Inc.		6,173		151,682
Biovail Corp.		2,600		33,226
Bombardier, Inc.		32,700		119,479
Brookfield Asset Management, Inc.		10,625		216,722
Brookfield Properties Corp.		4,850		53,340
CAE, Inc.		5,800		46,729
Cameco Corp.		8,500		226,175
Canadian Imperial Bank of Commerce		8,600		504,727
Canadian National Railway Company		10,500		507,568
Canadian Natural Resources, Ltd.		12,200		698,846
Canadian Oil Sands Trust		5,500		138,159
Canadian Pacific Railway, Ltd.		3,600		172,379
Canadian Tire Corp., Ltd.		1,600		83,453
Canadian Utilities, Ltd.		1,600		54,749
CGI Group, Inc. *		5,200		53,769
CI Financial Corp.		3,100		57,342
Crescent Point Energy Corp.		3,000		100,571
Eldorado Gold Corp. *		8,100		83,608
Empire Company, Ltd.		600		22,970
Enbridge, Inc.		7,800		291,409
EnCana Corp.		17,000		886,065
Enerplus Resources Fund		3,300		69,090
Ensign Energy Services, Inc.		3,100		45,477
Fairfax Financial Holdings, Ltd.		400		135,987
Finning International, Inc.		3,300		48,592
First Quantum Minerals, Ltd.		1,600		94,750
Fortis, Inc.		3,500		79,639
Franco-Nevada Corp.		2,100		54,037
George Weston, Ltd.		1,100		57,334
Gerdau Ameristeel Corp.		2,700		19,607
Gildan Activewear, Inc. *		2,700		55,615
Goldcorp, Inc.		16,453		599,507
Great-West Lifeco, Inc.		6,600		156,507
Groupe Aeroplan, Inc.		3,936		32,933
Husky Energy, Inc.		5,500		148,107
IAMGOLD Corp.		6,900		80,172
IGM Financial, Inc.		2,400		89,664
Imperial Oil, Ltd.		6,600		237,353
Industrial Alliance Insurance and Financial Services, Inc.		1,900		51,199
Inmet Mining Corp.		900		39,017
Intact Financial Corp.		1,800		55,870
Ivanhoe Mines, Ltd. *		5,800		64,212
Jazz Air Income Fund *		415		1,297
Kinross Gold Corp.		15,258		289,620
Loblaw Companies, Ltd.		2,200		66,819
Magna International, Inc.		2,400		108,737
Manitoba Telecom Services, Inc.		200		5,972
Manulife Financial Corp. (c)		36,600		753,230
MDS, Inc. *		1,400		8,389
Metro, Inc.		2,200		74,234
National Bank of Canada		3,500		196,460
Nexen, Inc.		10,300		202,284
Niko Resources, Ltd.		1,000		64,855
Onex Corp.		2,300		48,111
Open Text Corp. *		1,000		35,223
Pan American Silver Corp. *		2,000		39,132
Penn West Energy Trust (a)		9,415		121,348
Potash Corp. of Saskatchewan, Inc.		6,700		594,753
Power Corp. of Canada		7,500		199,977
Power Financial Corp.		5,200		142,688
Precision Drilling Trust, ADR		1,371		7,827
Progress Energy Resources Corp.		3,400		32,206
Provident Energy Trust		5,400		28,215
QLT, Inc. *		250		1,064
Research In Motion, Ltd. *		11,600		851,391
RioCan Real Estate Investment Trust		2,600		40,018
Ritchie Bros. Auctioneers, Inc.		1,900		47,728
Rogers Communications, Inc., Class B		11,000		302,845
Royal Bank of Canada		32,800		1,691,309
Saputo, Inc.		2,900		73,033
Shaw Communications, Inc.		7,400		127,012

The accompanying notes are an integral part of the financial statements.

164

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Sherritt International Corp.		6,000	$	36,940
Shoppers Drug Mart Corp.		4,500		176,753
Silver Wheaton Corp. *		5,400		56,133
Sino-Forest Corp. *		4,100		50,934
SNC-Lavalin Group, Inc.		3,500		148,153
Sun Life Financial, Inc.		12,500		369,948
Suncor Energy, Inc. *		36,424		1,114,263
Talisman Energy, Inc.		22,600		363,334
Teck Cominco, Ltd. *		11,852		286,029
Telus Corp.		1,400		43,416
Telus Corp.		2,900		85,960
Thomson Corp.		4,900		156,344
TMX Group, Inc.		1,400		45,207
Toronto Dominion Bank Ontario		19,850		1,227,173
TransAlta Corp.		4,500		87,636
Trans-Canada Corp.		15,200		452,633
Trican Well Service, Ltd.		3,100		28,713
Vermilion Energy Trust		400		10,647
Viterra, Inc. *		4,200		36,984
Yamana Gold, Inc.		15,793		145,271
Yellow Pages Income Fund		5,800		26,808
				20,494,397
Cayman Islands - 0.03%
China Dongxiang Group Company		36,500		22,842
China High Speed Transmission Equipment Group Company, Ltd.		29,000		62,679
Hopewell Highway Infrastructure, Ltd.		2,300		1,402
				86,923
Chile - 0.28%
Banco Santander Chile SA, ADR		1,889		96,660
Banco Santander SA		1,001		15,249
Cia Cervecerias Unidas SA, ADR		1,107		36,022
Corpbanca SA, SADR		650		18,525
Embotelladora Andina SA, ADR, Series A		915		13,199
Embotelladora Andina SA, ADR, Series B		1,006		17,243
Empresa Nacional de Electricidad SA, ADR		4,816		222,066
Enersis SA, SADR		11,776		203,843
Lan Airlines SA, SADR		4,620		54,747
Sociedad Quimica y Minera de Chile SA, ADR, B Shares		5,146		179,235
Vina Concha Y Toro SA, ADR		911		37,132
				893,921
China - 2.16%
Air China, Ltd., Class H *		41,466		24,430
Aluminum Corp. of China, Ltd.		112,780		120,553
Angang New Steel Company, Ltd., Class H		29,012		55,051
Bank of China, Ltd.		1,356,474		659,504
Bank of Communications Company, Ltd.,Class H		142,879		168,210
Beijing Capital International Airport Company, Ltd., Class H *		81,211		45,337
Beijing Datang Power Generation Company, Ltd., Class H		61,136		32,573
BYD Company, Ltd., Class H *		12,494		78,568
Chaoda Modern Agriculture Holdings, Ltd.		73,214		43,680
China BlueChemical, Ltd.		68,000		36,723
China CITIC Bank		128,000		77,601
China Coal Energy Company, Series H		97,595		124,704
China Communications Construction Company, Ltd.		88,665		101,623
China Communications Services Corp., Ltd., Class H		82,000		45,977
China Construction Bank Corp.		1,066,118		802,959
China COSCO Holdings Company, Ltd.		72,879		88,219
China Life Insurance Company, Ltd.		176,376		742,639
China Merchants Bank Company, Ltd.		75,390		164,736
China National Building Material Company, Ltd.		36,000		75,666
China Oilfield Services, Ltd., Series H		34,000		29,620
China Petroleum & Chemical Corp., Class H		388,030		325,737
China Railway Construction Corp. - Hong Kong Exchange		37,000		54,306
China Railway Group, Ltd. *		100,000		86,909
China Shenhua Energy Company, Ltd.		77,500		314,793
China Shipping Container Lines Company, Ltd. *		134,076		49,093
China Shipping Development Company, Ltd., Class H		21,568		26,971
China Telecom Corp., Ltd.		326,396		167,947
China Zhongwang Holdings, Ltd. *		46,000		50,184
Country Garden Holdings Company, Ltd.		162,471		67,041
Dongfeng Motor Group Company, Ltd.		78,780		81,775
Foxconn International Holdings, Ltd. *		43,000		26,395
Guangdong Investment, Ltd.		96,780		49,374
Guangshen Railway Company, Ltd., Class H		61,211		26,606
Guangzhou R&F Properties Company, Ltd., Class H		28,000		45,630
Huaneng Power International, Inc., Class H		56,564		39,539
Industrial & Commercial Bank of China, Ltd.		988,000		674,050
Jiangsu Expressway, Ltd.		46,855		36,926
Jiangxi Copper Company, Ltd., Class H		36,925		76,801
Lenovo Group, Ltd.		128,564		54,718
Maanshan Iron & Steel Company, Ltd. *		77,925		47,851
PetroChina Company, Ltd., Class H		503,739		556,092
PICC Property & Casualty Company, Ltd., Class H *		42,780		26,867
Shanghai Electric Group Company, Ltd.		43,136		19,748
Shui On Land, Ltd.		78,650		43,608
Sinopec Shanghai Petrochemical Company, Ltd., Class H *		92,066		39,184
Tingyi Cayman Islands Holding Corp.		32,000		57,592
Tsingtao Brewery Company, Ltd., Series H		16,000		55,081
Want Want China Holdings, Ltd.		87,000		46,184
Weichai Power Company, Ltd.		6,800		30,389
Yanzhou Coal Mining Company, Ltd., Class H		51,210		72,181
Zhejiang Expressway Company, Ltd., Class H		54,282		51,834
Zijin Mining Group, Ltd.		107,686		90,673
ZTE Corp., Class H		8,680		40,471
				6,950,923
Colombia - 0.14%
BanColombia SA, ADR		12,306		437,355
Czech Republic - 0.13%
CEZ AS		4,862		254,094

The accompanying notes are an integral part of the financial statements.

165

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Czech Republic (continued)
Komercni Banka AS		489	$	93,374
Telefonica Czech Republic AS		2,393		66,414
				413,882
Denmark - 0.65%
A P Moller Maersk AS, Series A		15		104,190
A P Moller Maersk AS		24		173,172
Carlsberg AS, B Shares		2,800		201,435
Coloplast AS		923		71,397
Danske Bank AS *		9,800		263,644
DSV AS, ADR *		3,300		51,102
H. Lundbeck AS		1,700		33,619
Novo Nordisk AS		10,100		617,234
Novozymes AS, B Shares		1,200		103,054
Topdanmark AS *		300		40,950
TrygVesta AS		389		24,810
Vestas Wind Systems AS *		5,000		359,122
William Demant Holdings AS *		900		55,175
				2,098,904
Egypt - 0.12%
Commercial International Bank		4,650		45,552
Egypt Kuwait Holding Company		8,967		21,160
Egyptian Company for Mobile Services		751		29,406
Egyptian Financial Group-Hermes Holding		7,160		36,397
EL Ezz Aldekhela Steel Alexandria		3		416
EL EZZ Steel Company		1,163		3,114
Orascom Construction Industries		2,165		91,050
Orascom Telecom Holding SAE		12,609		82,362
Sidi Kerir Petrochemicals Company		9,437		19,633
Talaat Moustafa Group *		21,101		24,010
Telecom Egypt		6,820		22,826
				375,926
Finland - 0.89%
Elisa Oyj, Class A		2,700		53,358
Fortum Corp. Oyj		10,836		283,787
Kesko Oyj		1,200		35,359
Kone Corp. Oyj		4,231		147,419
Metso Oyj		3,500		88,376
Neste Oil Oyj		2,262		37,659
Nokia AB Oyj		89,700		1,256,969
Nokian Renkaat Oyj (a)		2,120		47,794
Orion Oyj, Series B		2,690		45,732
Outokumpu Oyj		3,000		63,723
Pohjola Bank PLC		4,484		51,918
Rautaruukki Oyj		3,200		74,965
Sampo Oyj, Class A		10,950		262,872
Sanoma WSOY Oyj (a)		3,520		69,794
Stora Enso Oyj, Series R *		14,000		96,283
UPM-Kymmene Oyj		14,389		173,109
Wartsila Oyj Corp. (a)		2,400		91,101
				2,880,218
France - 6.85%
Accor SA		3,342		176,447
Aeroports de Paris		536		46,182
Air France KLM *		2,217		34,023
Air Liquide		5,574		596,446
Alcatel-Lucent *		49,148		185,539
Alstom SA		4,446		313,528
Atos Origin SA *		997		46,928
AXA Group SA		36,797		841,286
BioMerieux SA		199		19,424
BNP Paribas SA		19,528		1,575,943
Bouygues SA		4,847		241,471
Bureau Veritas SA		1,080		54,588
Cap Gemini SA		3,387		164,238
Carrefour SA		14,321		675,897
Casino Guichard-Perrachon SA		1,207		91,490
Christian Dior SA		1,468		136,331
Cie Generale de Geophysique-Veritas *		3,043		65,564
CNP Assurances SA		821		82,039
Compagnie de Saint-Gobain SA		8,198		369,327
Compagnie Generale des Etablissements Michelin, Class B		3,150		237,677
Credit Agricole SA (a)		19,658		364,693
Dassault Systemes SA		1,423		72,908
Eiffage SA		858		61,083
Electricite de France		5,215		273,989
Eramet		92		29,776
Essilor International SA		4,399		237,747
Eurazeo		370		20,112
European Aeronautic Defence & Space Company		8,747		181,819
Eutelsat Communications *		1,902		50,900
Fonciere Des Regions		402		42,096
France Telecom SA (a)		42,854		1,092,543
GDF Suez		28,234		1,192,266
GDF Suez *		1,386		2
Gecina SA		319		31,709
Groupe DANONE		12,407		675,322
Hermes International SA (a)		1,139		168,948
ICADE		405		37,794
Iliad SA		310		31,811
Imerys SA		677		35,600
Ipsen SA		329		16,280
JC Decaux SA *		1,422		30,896
Klepierre SA (a)		1,667		62,689
Lafarge SA		4,419		377,068
Lagardere SCA		2,415		104,259
Legrand SA, ADR		1,937		47,604
L’Oreal SA		5,358		528,445
LVMH Moet Hennessy SA		5,488		526,108
M6-Metropole Television		1,462		33,239
Natixis *		20,204		92,289
Neopost SA		725		59,846
PagesJaunes Groupe SA (a)		2,127		23,767
Pernod-Ricard SA		4,290		334,558
PPR SA		1,631		189,912
PSA Peugeot Citroen SA *		3,107		90,340
Publicis Groupe SA		2,614		96,382
Renault Regie Nationale SA *		3,974		179,869
Safran SA		3,928		72,229
Sanofi-Aventis SA		24,562		1,668,561

The accompanying notes are an integral part of the financial statements.

166

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
France (continued)
Schneider Electric SA		5,222	$	483,377
SCOR SE		3,668		96,569
Societe BIC SA		490		30,133
Societe Des Autoroutes Paris-Rhin-Rhone		356		26,624
Societe Generale		10,910		884,038
Societe Television Francaise 1		2,677		43,464
Sodexho Alliance		1,977		114,010
Suez Environnement SA		5,620		115,792
Technip SA		2,406		149,027
Thales SA		1,827		83,944
Total SA		49,688		2,856,634
Unibail-Rodamco SE, REIT		1,805		357,864
Vallourec SA		1,141		173,963
Veolia Environnement SA		8,339		289,209
Vinci SA		9,463		509,329
Vivendi SA		26,401		753,139
				22,056,943
Germany - 5.17%
Adidas-Salomon AG		4,178		197,255
Allianz SE		10,603		1,226,211
BASF SE		21,614		1,130,292
Bayer AG		17,886		1,099,774
Bayerische Motoren Werke (BMW) AG		7,329		334,574
Beiersdorf AG		2,174		110,493
Celesio AG		1,813		49,359
Commerzbank AG * (a)		17,944		166,377
Daimler AG		20,485		926,162
Deutsche Bank AG		12,676		863,684
Deutsche Boerse AG		4,337		331,114
Deutsche Lufthansa AG		5,386		86,650
Deutsche Post AG		21,969		379,987
Deutsche Postbank AG *		1,641		58,382
Deutsche Telekom AG		64,276		856,732
E.ON AG		44,338		1,878,884
Fraport AG, ADR		584		29,542
Fresenius AG		445		22,541
Fresenius Medical Care AG		4,583		206,097
Fresenius SE		1,668		94,237
GEA Group AG		2,948		52,261
Hamburger Hafen und Logistik AG		676		28,309
Hannover Rueckversicherung AG *		1,339		59,021
Henkel AG & Company KGaA		3,462		115,819
Hochtief AG		920		68,225
K&S AG		3,567		181,201
Linde AG		3,356		338,096
MAN AG		2,262		172,986
Merck KGaA		1,387		125,913
Metro AG		2,889		156,963
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe)		4,657		694,715
Puma AG		91		25,813
Qiagen AG *		5,443		112,064
RWE AG		9,830		911,878
Salzgitter AG		998		95,001
SAP AG		20,117		982,811
Siemens AG		19,207		1,665,629
Solarworld AG (a)		1,509		32,114
Suedzucker AG		1,340		26,137
Thyssen Krupp AG		8,016		273,287
TUI AG *		2,762		24,095
United Internet AG *		2,473		35,042
Volkswagen AG (a)		1,996		386,436
Wacker Chemie AG		337		40,600
				16,652,763
Greece - 0.43%
Alpha Bank A.E. *		8,124		135,197
Bank of Cyprus PCL		11,128		77,437
Bank of Piraeus SA *		5,983		94,385
Coca-Cola Hellenic Bottling Company SA		4,455		102,672
EFG Eurobank Ergas SA *		9,415		132,622
Hellenic Petroleum SA		1,230		12,777
Hellenic Telecommunications Organization SA		6,640		102,113
Marfin Financial Group SA Holdings *		14,926		57,989
National Bank of Greece SA *		13,254		417,355
OPAP SA		4,770		116,408
Public Power Corp. SA *		2,630		61,938
Titan Cement Company SA		2,180		63,270
				1,374,163
Hong Kong - 3.04%
Agile Property Holdings, Ltd.		33,211		37,424
Alibaba.com, Ltd. *		26,000		64,966
Anhui Conch Cement Company, Ltd., Class H		11,070		70,707
ASM Pacific Technology, Ltd.		4,500		28,779
Bank of East Asia, Ltd.		30,651		99,134
Beijing Enterprises Holdings, Ltd.		16,714		83,021
Belle International Holdings, Ltd., GDR		108,888		98,974
BOC Hong Kong Holdings, Ltd.		79,500		159,146
Cathay Pacific Airways, Ltd. *		31,000		44,911
Cheung Kong Holdings, Ltd.		31,000		367,449
Cheung Kong Infrastructure Holdings, Ltd.		9,000		32,394
China Agri-Industries Holdings, Ltd.		65,784		46,239
China Everbright, Ltd.		11,784		27,890
China Insurance International Holdings Company, Ltd. *		26,000		69,218
China Mengniu Dairy Company, Ltd. *		25,498		60,315
China Merchants Holdings International Company, Ltd.		31,513		102,134
China Mobile, Ltd.		140,470		1,368,848
China Overseas Land & Investment, Ltd.		90,397		182,604
China Resource Power Holdings, Ltd.		38,532		93,285
China Resources Enterprises, Ltd.		22,855		53,380
China Resources Land, Ltd.		51,211		107,390
China South Locomotive and Rolling Stock Corp.		63,000		37,374
China Travel International Investment Hong Kong, Ltd.		175,709		34,766
China Unicom, Ltd.		142,416		199,176
Citic Pacific, Ltd.		29,033		77,692
CLP Holdings, Ltd.		45,500		304,421
CNOOC, Ltd.		426,716		554,574
CNPC Hong Kong, Ltd.		40,000		33,529
Cosco Pacific, Ltd.		25,508		38,155

The accompanying notes are an integral part of the financial statements.

167

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Denway Motors, Ltd.		175,559	$	79,235
Dongfang Electrical Machinery Company, Ltd.		2,000		9,813
Esprit Holdings, Ltd.		26,500		160,887
Fosun International		65,500		50,772
Franshion Properties China, Ltd.		106,000		29,526
Gome Electrical Appliances Holdings, Ltd. *		131,695		35,147
Hang Lung Group, Ltd.		21,000		96,687
Hang Lung Properties, Ltd.		49,000		152,696
Hang Seng Bank, Ltd.		16,900		240,301
Harbin Power Equipment Company, Ltd.		42,000		41,922
Henderson Land Development Company, Ltd.		25,508		149,350
Hengan International Group Company, Ltd.		16,000		88,736
Hong Kong & China Gas Company, Ltd.		86,870		188,009
Hong Kong Aircraft Engineering Company, Ltd.		1,600		18,752
Hong Kong Electric Holdings, Ltd.		33,000		184,277
Hong Kong Exchanges & Clearing, Ltd.		24,000		418,777
Hopewell Holdings, Ltd.		13,000		39,151
Huabao International Holdings, Ltd.		45,000		46,831
Hutchison Telecommunications Hong Kong Holdings, Ltd.		59,000		9,285
Hutchison Telecommunications International, Ltd. *		59,000		12,450
Hutchison Whampoa, Ltd.		47,000		330,510
Hysan Development Company, Ltd.		16,655		39,161
Kerry Properties, Ltd.		18,768		89,123
Kingboard Chemical Holdings, Ltd.		14,000		44,421
Li & Fung, Ltd.		45,600		152,098
Li Ning Company, Ltd.		13,749		38,360
Lifestyle International Holdings, Ltd.		15,500		22,072
Link, REIT		55,541		122,326
Mongolia Energy Company, Ltd. *		25,000		8,792
MTR Corp., Ltd.		32,040		108,041
New World Development Company, Ltd.		63,229		127,497
Noble Group, Ltd.		40,400		59,346
NWS Holdings, Ltd.		25,477		50,328
Orient Overseas International, Ltd.		5,000		23,406
Parkson Retail Group, Ltd.		42,500		62,813
Ping An Insurance Group Company of China, Ltd.		30,855		231,387
Renhe Commercial Holdings Company, Ltd.		224,000		48,253
Shandong Weigao Group Medical Polymer Company, Ltd.		12,000		32,538
Shanghai Industrial Holdings, Ltd.		14,070		67,754
Shangri-La Asia, Ltd.		36,000		53,037
Shimao Property Holdings, Ltd., GDR		49,500		73,779
Sino Land Company, Ltd.		36,482		62,563
Sinofert Holdings, Ltd.		76,000		34,373
Sino-Ocean Land Holdings, Ltd.		80,865		73,835
Sinotruk Hong Kong, Ltd.		26,500		30,694
Soho China, Ltd.		73,500		39,053
Sun Hung Kai Properties, Ltd.		32,000		431,262
Swire Pacific, Ltd., Class A		18,500		192,919
Television Broadcasting Company, Ltd.		6,000		25,520
Tencent Holdings, Ltd.		22,000		328,048
Wharf Holdings, Ltd.		29,625		132,099
Wheelock and Company, Ltd.		17,000		45,608
Wing Hang Bank, Ltd.		3,085		27,935
Yue Yuen Industrial Holdings, Ltd.		13,000		33,931
				9,773,381
Hungary - 0.15%
Gedeon Richter Rt.		323		64,843
Magyar Telekom Rt.		18,477		74,941
MOL Magyar Olaj & Gazipari Rt. *		1,808		141,822
OTP Bank Rt. *		7,382		191,541
				473,147
India - 1.51%
Dr. Reddy’s Laboratories, Ltd., ADR (a)		9,645		155,477
Grasim Industries, Ltd., ADR (f)		2,144		117,384
ICICI Bank, Ltd., SADR		22,040		672,661
Infosys Technologies, Ltd., ADR (a)		26,649		1,152,036
Larsen & Toubro, Ltd., ADR (f)		2,732		87,706
Larsen & Toubro, Ltd.		10,274		336,474
Ranbaxy Laboratories, Ltd., ADR *		12,031		82,412
Reliance Communication, Ltd., ADR (f)		34,017		181,423
Reliance Energy, Ltd., ADR (a)(f)		447		31,469
Reliance Industries, Ltd., GDR * (f)		14,688		1,248,480
Reliance Natural Resources, Ltd., ADR * (f)		8,956		31,587
Satyam Computer Services, Ltd., ADR		17,159		114,279
State Bank of India GDR		2,545		188,330
Tata Communications, Ltd., ADR		1,347		27,465
Tata Motors, Ltd., SADR (a)		12,328		142,882
Wipro, Ltd., ADR (a)		17,577		276,838
				4,846,903
Indonesia - 0.35%
Aneka Tambang Tbk PT		82,500		18,836
Astra Agro Lestari Tbk PT		10,000		21,449
Astra International Tbk PT		46,000		137,511
Bank Central Asia Tbk PT		368,000		155,151
Bank Danamon Indonesia Tbk PT		55,426		25,916
Bank Mandiri Tbk PT		137,500		56,357
Bank Pan Indonesia Tbk PT *		25,750		1,871
Bank Rakyat Indonesia Tbk PT		111,000		83,618
Bumi Resources Tbk PT		385,000		112,347
Indocement Tunggal Prakarsa Tbk PT		23,000		22,931
Indofood Sukses Makmur Tbk PT		105,500		26,145
Indosat Tbk PT		45,500		23,744
International Nickel Indonesia Tbk PT *		50,000		21,166
Lippo Karawaci Tbk PT *		129,500		8,220
Perusahaan Gas Negara Tbk PT		347,500		120,217
PT Telekomunikiasi Indonesia Tbk PT, SADR		1,909		62,100
Semen Gresik Persero Tbk PT		17,000		10,078
Tambang Batubara Bukit Asam Tbk PT		13,000		16,892
Telekomunikasi Indonesia Tbk PT		162,500		135,298
Unilever Indonesia Tbk PT		25,500		25,509
United Tractors Tbk PT		35,333		47,645
				1,133,001
Ireland - 0.27%
Allied Irish Banks PLC - London Exchange *		1,000		3,818
Anglo Irish Bank Corp. PLC *		29,183		20,424
Bank of Ireland - London Exchange *		21,681		77,705
Bank of Ireland *		461		1,645

The accompanying notes are an integral part of the financial statements.

168

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Ireland (continued)
C&C Group PLC		187	$	699
CRH PLC - London Exchange		5,888		147,367
CRH PLC		9,615		247,576
Elan Corp. PLC *		3,097		22,470
Elan Corp. PLC *		6,649		48,198
Experian Group, Ltd.		22,207		186,111
Greencore Group PLC		32		76
Kerry Group PLC		1,535		40,180
Kerry Group PLC		1,276		33,400
Ryanair Holdings PLC, SADR *		1,496		40,975
				870,644
Israel - 0.60%
Alvarion, Ltd., ADR *		649		2,525
Audio Codes, Ltd., ADR *		664		1,295
Bank Hapoalim, Ltd. *		19,078		61,274
Bank Leumi Le-Israel, Ltd. *		25,593		87,520
Bezek Israeli Telecommunications Corp., Ltd.		23,820		49,801
Cellcom Israel, Ltd.		1,500		42,450
Check Point Software Technologies, Ltd. *		4,907		136,758
Delek Group, Ltd.		15		2,499
Delek Real Estate, Ltd. *		2,786		3,997
Discount Investment Corp.		1,168		27,088
Elbit Systems, Ltd.		841		54,625
Given Imaging Corp., ADR *		209		2,468
ICL Israel Chemicals, Ltd.		13,573		151,723
Israel Corp., Ltd.		77		46,011
Israel Discount Bank, Ltd.		4,731		8,282
Makhteshim-Agam Industries, Ltd.		5,005		22,927
Nice Systems, Ltd. *		992		27,583
Ormat Industries, Ltd.		1,927		15,398
Partner Communications, Ltd.		1,898		36,244
RADWARE, Ltd., ADR *		413		4,568
Syneron Medical, Ltd., ADR *		423		4,128
Teva Pharmaceutical Industries, Ltd.		21,025		1,083,178
United Mizrahi Bank, Ltd. *		6,424		48,828
				1,921,170
Italy - 2.59%
A2A SpA		22,218		43,091
Acea SpA		693		8,461
Alleanza Assicurazioni SpA		10,025		82,514
Assicurazioni Generali SpA		25,253		630,616
Autogrill SpA *		5,120		57,888
Autostrade SpA		7,199		160,318
Banca Carige SpA		15,492		46,939
Banca Intesa SpA - Non convertible		17,476		57,046
Banca Monte dei Paschi Siena SpA		59,090		124,588
Banca Popolare di Milano SpA		7,402		55,979
Banche Popolari Unite SpA		14,971		226,809
Banco Popolare Societa Cooperativa *		17,862		158,663
Enel SpA		156,224		920,322
Eni SpA		59,414		1,410,470
Exor SpA		1,598		27,506
Fiat SpA *		16,560		196,202
Finmeccanica SpA		11,354		181,710
Fondiaria-Sai SpA		3,169		60,937
Intesa Sanpaolo SpA *		183,484		796,118
Italcementi SpA		3,618		54,378
Lottomatica SpA		507		11,426
Luxottica Group SpA *		2,898		70,407
Mediaset SpA		19,296		127,453
Mediobanca SpA		9,525		131,011
Mediolanum SpA		2,984		18,944
Parmalat SpA		41,764		107,348
Pirelli & Company SpA *		135,780		65,210
Prysmian SpA		1,631		30,565
Saipem SpA		6,249		167,751
Saras SpA		15,162		52,568
Snam Rete Gas SpA		37,265		173,266
Telecom Italia SpA		245,163		396,864
Telecom Italia SpA		128,130		145,305
Tenaris SA		10,086		146,544
Terna SpA		29,793		109,828
UniCredit Italiano SpA *		341,568		1,243,707
Unipol Gruppo Finanziario SpA, ADR *		31,121		41,361
				8,340,113
Japan - 15.10%
ABC-MART, Inc.		200		5,800
Acom Company, Ltd. (a)		650		13,309
Advantest Corp.		3,400		84,427
AEON Company, Ltd.		15,100		159,462
AEON Credit Service Company, Ltd.		1,600		17,987
Aeon Mall Company, Ltd.		1,700		39,890
Aioi Insurance Company, Ltd.		11,000		54,093
Aisin Seiki Company		4,300		107,022
Ajinomoto Company, Inc.		14,000		142,186
Alfresa Holdings Corp.		800		36,176
All Nippon Airways Company, Ltd.		15,000		46,176
Amada Company, Ltd.		6,000		41,865
Aozora Bank, Ltd.		13,000		19,168
Asahi Breweries, Ltd.		9,000		156,439
Asahi Glass Company, Ltd.		22,000		190,221
Asahi Kasei Corp.		30,000		143,860
ASICS Corp.		4,000		39,297
Astellas Pharmaceuticals, Inc.		10,100		403,486
Bank of Kyoto, Ltd.		7,000		67,957
Benesse Corp.		1,800		88,371
Bridgestone Corp.		13,400		243,482
Brother Industries, Ltd.		4,400		43,976
Canon Sales Company, Inc.		1,800		30,247
Canon, Inc.		24,200		922,307
Casio Computer Company, Ltd.		6,300		62,039
Central Japan Railway Company, Ltd.		34		229,766
Chiba Bank, Ltd.		18,000		113,270
Chubu Electric Power Company, Inc.		14,800		343,520
Chugai Pharmaceutical Company, Ltd.		5,100		104,116
Chugoku Bank, Ltd.		4,000		53,784
Chugoku Electric Power Company, Inc.		5,900		129,701
Citizen Watch Company, Ltd.		4,700		28,277
Coca-Cola West Japan Company, Ltd.		900		17,381
Cosmo Oil Company, Ltd.		11,000		33,637
Credit Saison Company, Ltd.		2,700		36,167

The accompanying notes are an integral part of the financial statements.

169

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Dai Nippon Printing Company, Ltd.		13,000	$	189,108
Daicel Chemical Industries, Ltd.		7,000		45,344
Daido Steel Company, Ltd.		7,000		27,957
Daihatsu Motor Company, Ltd.		4,000		41,026
Daiichi Sankyo Company, Ltd.		14,900		317,777
Daikin Industries, Ltd.		5,600		196,185
Dainippon Ink & Chemicals, Inc.		16,000		24,850
Dainippon Sumitomo Pharma Company, Ltd.		3,700		41,659
Daito Trust Construction Company, Ltd.		1,600		75,954
Daiwa House Industry Company, Ltd.		12,000		133,047
Daiwa Securities Group, Inc.		39,000		241,854
Dena Company, Ltd.		8		25,253
Denki Kagaku Kogyo Kabushiki Kaisha		12,000		50,626
Denso Corp.		10,800		311,880
Dentsu, Inc.		3,400		78,000
Dowa Mining Company, Ltd.		7,000		39,119
East Japan Railway Company		7,600		496,018
Eisai Company, Ltd.		5,500		201,693
Electric Power Development Company, Ltd.		2,700		81,989
Elpida Memory, Inc. * (a)		3,500		54,267
FamilyMart Company, Ltd.		1,200		37,134
Fanuc, Ltd.		4,300		348,977
Fast Retailing Company, Ltd.		1,000		119,336
Fuji Electric Holdings Company, Ltd.		15,000		28,515
Fuji Heavy Industries, Ltd.		13,000		55,741
Fuji Photo Film Company, Ltd.		10,900		324,771
Fuji Television Network, Inc.		11		17,223
Fujitsu, Ltd.		41,000		276,252
Fukuoka Financial Group, Inc.		19,000		84,947
Furukawa Electric Company, Ltd.		15,000		66,041
GS Yuasa Corp. (a)		7,000		60,767
Gunma Bank		9,000		50,665
Hakuhodo DY Holdings, Inc.		650		36,152
Hankyu Hanshin Holdings, Inc.		24,200		115,747
Hikari Tsushin, Inc.		500		10,753
Hino Motors, Ltd.		6,000		24,667
Hirose Electric Company, Ltd.		700		86,076
Hisamitsu Pharmaceutical Company, Inc.		1,500		57,774
Hitachi Chemical, Ltd.		1,900		38,979
Hitachi Construction Machinery Company, Ltd.		1,900		38,278
Hitachi High-Technologies Corp.		1,200		24,019
Hitachi Metals, Ltd.		3,000		30,356
Hitachi, Ltd.		74,000		259,156
Hokkaido Electric Power Company, Inc.		4,100		84,547
Hokuhoku Financial Group, Inc.		29,000		71,993
Hokuriku Electric Power Company		3,900		94,536
Honda Motor Company, Ltd.		38,600		1,211,007
Hoya Corp.		9,900		222,386
Ibiden Company, Ltd.		3,100		109,501
Idemitsu Kosan Company, Ltd.		500		41,126
Inpex Holdings, Inc.		20		162,239
Isetan Mitsukoshi Holdings, Ltd.		7,740		85,087
Ishikawajima-Harima Heavy Industries Company, Ltd.		33,000		67,000
Isuzu Motors, Ltd.		26,000		59,872
ITO EN, Ltd.		900		16,507
Itochu Corp.		33,000		232,344
Itochu Techno-Science Corp.		800		23,472
Iyo Bank, Ltd.		6,000		58,732
J Front Retailing Company, Ltd.		9,000		50,763
JAFCO Company, Ltd. *		900		30,119
Japan Airlines System Corp. *		20,000		35,881
Japan Petroleum Exploration Company, Ltd.		800		41,478
Japan Prime Realty Investment Corp., REIT		9		21,508
Japan Real Estate Investment Corp., REIT		9		73,279
Japan Retail Fund Investment Corp., REIT		8		42,601
Japan Tobacco, Inc.		100		289,750
JFE Holdings, Inc.		11,000		381,357
JGC Corp.		5,000		92,247
Joyo Bank, Ltd.		16,000		81,540
JS Group Corp.		5,600		98,838
JSR Corp.		3,800		66,783
Jupiter Telecommunications Company, Ltd.		59		51,355
Kajima Corp.		20,000		55,848
Kamigumi Company, Ltd.		7,000		58,948
Kaneka Corp.		8,000		58,551
Kansai Electric Power Company, Ltd.		17,100		393,215
Kansai Paint Company, Ltd.		6,000		48,668
Kao Corp.		12,000		304,515
Kawasaki Heavy Industries, Ltd.		29,000		76,561
Kawasaki Kisen Kaisha, Ltd.		12,000		52,679
KDDI Corp.		65		369,336
Keihin Electric Express Railway Company, Ltd.		9,000		74,601
Keio Corp.		14,000		94,690
Keisei Electric Railway Company, Ltd.		7,000		48,955
Keyence Corp.		900		189,166
Kikkoman Corp.		3,000		37,216
Kinden Corp.		4,000		35,736
Kintetsu Corp.		35,000		151,646
Kirin Brewery Company, Ltd.		20,000		292,757
Kobe Steel Company, Ltd.		52,000		95,982
Komatsu, Ltd.		21,100		377,933
Konami Corp.		1,800		35,431
Konica Minolta Holdings, Inc.		11,000		103,884
Koyo Seiko Company, Ltd.		5,300		67,945
Kubota Corp.		26,000		213,085
Kuraray Company, Ltd.		8,500		92,267
Kurita Water Industries, Ltd.		2,800		93,215
Kyocera Corp.		3,600		299,592
Kyowa Hakko Kogyo Company, Ltd.		4,737		57,499
Kyushu Electric Power Company, Inc.		8,200		181,134
Lawson, Inc.		1,600		69,207
LeoPalace21 Corp.		3,300		29,709
Mabuchi Motor Company, Ltd.		700		35,525
Makita Corp.		2,400		67,383
Marubeni Corp.		36,000		177,867
Marui Company, Ltd.		3,700		25,669
Maruichi Steel Tube, Ltd.		400		8,326
Matsui Securities Company, Ltd.		2,100		19,351
Matsushita Electric Industrial Company, Ltd.		44,400		710,237
Matsushita Electric Works, Ltd.		9,000		107,347
Mazda Motor Corp.		17,000		46,757

The accompanying notes are an integral part of the financial statements.

170

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Japan (continued)
McDonald’s Holdings Company (Japan), Ltd. *		1,900	$	35,533
Mediceo Holdings Company, Ltd.		3,700		52,848
MEIJI Holdings Company, Ltd. *		1,300		53,062
Minebea Company, Ltd.		10,000		46,066
Mitsubishi Chemical Holdings Corp., ADR		25,500		115,286
Mitsubishi Corp.		30,600		610,417
Mitsubishi Electric Corp.		43,000		317,883
Mitsubishi Estate Company, Ltd.		28,000		461,265
Mitsubishi Gas & Chemicals Company, Inc.		7,000		40,936
Mitsubishi Heavy Industries, Ltd.		67,000		275,858
Mitsubishi Logistics Corp.		3,000		39,289
Mitsubishi Materials Corp.		26,000		78,571
Mitsubishi Motors Corp. * (a)		77,000		138,807
Mitsubishi Rayon Company, Ltd.		12,000		39,384
Mitsubishi UFJ Financial Group, Inc.		217,500		1,379,805
Mitsubishi UFJ Lease & Finance Company, Ltd.		1,140		35,881
Mitsui & Company, Ltd.		38,900		502,681
Mitsui Chemicals, Inc.		13,000		48,680
Mitsui Engineering & Shipbuilding Company, Ltd.		19,000		51,353
Mitsui Fudosan Company, Ltd.		19,000		356,431
Mitsui Mining & Smelting Company, Ltd.		13,000		36,654
Mitsui O.S.K. Lines, Ltd.		25,000		159,329
Mitsui Sumitomo Insurance Group Holdings, Inc.		9,300		260,614
Mitsui Trust Holdings, Inc.		22,000		92,872
Mitsumi Electric Company, Ltd.		1,900		43,733
Mizuho Financial Group, Inc.		296,100		721,466
Mizuho Trust & Banking Company, Ltd.		27,000		34,581
Murata Manufacturing Company, Ltd.		5,100		239,989
Namco Bandai Holdings, Inc.		5,100		54,181
NEC Corp. (a)		42,000		150,682
NGK INSULATORS, Ltd.		6,000		140,096
NGK Spark Plug Company, Ltd.		3,000		37,816
NHK Spring Company, Ltd.	��	3,000		21,987
Nidec Corp.		2,300		164,280
Nikon Corp.		7,000		120,271
Nintendo Company, Ltd.		2,300		620,283
Nippon Building Fund, Inc., REIT		11		96,773
Nippon Electric Glass Company, Ltd.		7,000		72,221
Nippon Express Company, Ltd.		19,000		84,571
Nippon Meat Packers, Inc.		4,000		48,255
Nippon Mining Holdings, Inc.		18,500		91,609
Nippon Oil Corp.		30,000		170,610
Nippon Paper Group, Inc.		2,000		58,691
Nippon Sheet Glass Company, Ltd.		12,000		41,628
Nippon Steel Corp.		114,000		444,394
Nippon Telegraph & Telephone Corp.		11,700		520,353
Nippon Yusen Kabushiki Kaisha		23,000		98,854
NIPPONKOA Insurance Company, Ltd.		13,000		80,433
Nishi-Nippon City Bank, Ltd.		17,000		45,172
Nissan Chemical Industries, Ltd.		4,000		58,275
Nissan Motor Company, Ltd.		55,400		386,411
Nissay Dowa General Insurance Company, Ltd.		2,000		10,164
Nisshin Seifun Group, Inc.		4,500		59,510
Nisshin Steel Company		12,000		24,160
Nisshinbo Industries, Inc.		3,000		34,873
Nissin Food Products Company, Ltd.		1,700		56,036
Nitori Company, Ltd.		850		65,722
Nitto Denko Corp.		3,500		105,471
NOK Corp.		2,500		33,863
Nomura Holdings, Inc.		56,100		492,030
Nomura Real Estate Holdings, Inc.		1,400		24,395
Nomura Real Estate Office Fund, Inc.		6		41,568
Nomura Research Institute, Ltd.		2,400		56,999
NSK, Ltd.		11,000		71,469
NTN Corp.		7,000		32,327
NTT Data Corp.		26		88,302
NTT DoCoMo, Inc.		353		543,222
NTT Urban Development Corp.		31		30,521
Obayashi Corp.		13,000		58,495
OBIC Company, Ltd.		130		21,240
Odakyu Electric Railway Company, Ltd.		15,000		134,842
Oji Paper Company, Ltd.		19,000		89,598
Olympus Optical Company, Ltd.		4,600		124,359
Omron Corp.		5,100		86,485
Ono Pharmaceutical Company, Ltd.		1,700		83,529
Onward Kashiyama Company, Ltd.		3,000		21,827
Oracle Corp. - Japan		1,000		41,407
Oriental Land Company, Ltd.		1,300		87,887
ORIX Corp. (a)		2,580		197,196
Osaka Gas Company, Ltd.		42,000		145,359
Otsuka Corp.		400		24,124
Promise Company, Ltd.		1,700		16,595
Rakuten, Inc.		176		106,325
Resona Holdings, Inc. (a)		12,200		165,853
Ricoh Company, Ltd.		15,000		216,519
Rinnai Corp.		600		29,673
Rohm Company, Ltd.		2,200		147,615
SANKYO Company, Ltd.		1,100		69,173
Santen Pharmaceutical Company, Ltd.		1,900		63,692
Sanyo Electric Company, Ltd. *		39,000		104,545
Sapporo Hokuyo Holdings, Inc.		3,500		12,665
Sapporo Holdings, Ltd.		4,000		22,848
SBI Holdings, Inc.		338		75,201
Secom Company, Ltd.		5,000		225,843
SEGA SAMMY HOLDINGS, Inc.		4,700		61,229
Seiko Epson Corp.		2,600		38,279
Sekisui Chemical Company, Ltd.		11,000		69,898
Sekisui House, Ltd.		11,000		105,173
Seven & I Holdings Company, Ltd.		17,200		416,234
Seven Bank, Ltd.		9		22,826
Sharp Corp.		22,000		252,701
Shikoku Electric Power Company, Inc.		4,200		129,702
Shimadzu Corp.		5,000		36,134
Shimamura Company, Ltd.		600		53,731
Shimano, Inc.		1,400		59,523
Shimizu Corp.		11,000		45,222
Shin-Etsu Chemical Company, Ltd.		9,200		541,464
Shinko Electric Industries Company, Ltd.		1,600		29,919
Shinko Securities Company, Ltd.		14,000		52,574

The accompanying notes are an integral part of the financial statements.

171

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Shinsei Bank, Ltd. *		19,000	$	32,223
Shionogi & Company, Ltd.		7,000		170,925
Shiseido Company, Ltd.		7,000		122,507
Shizuoka Bank, Ltd.		14,000		145,542
Showa Denko K.K.		22,000		47,469
Showa Shell Sekiyu K.K.		4,600		47,964
SMC Corp.		1,100		127,697
Softbank Corp.		16,800		374,828
Sojitz Holdings Corp.		23,900		50,688
Sompo Japan Insurance, Inc.		19,000		128,756
Sony Corp.		22,700		607,103
Sony Financial Holdings, Inc.		21		63,752
Square Enix Company, Ltd.		1,800		46,171
Stanley Electric Corp.		3,300		66,152
Sumco Corp.		2,200		44,664
Sumitomo Chemical Company, Ltd.		34,000		162,019
Sumitomo Corp.		24,800		252,469
Sumitomo Electric Industries, Ltd.		18,000		231,169
Sumitomo Heavy Industries, Ltd.		14,000		70,054
Sumitomo Metal Industries, Ltd.		73,000		181,532
Sumitomo Metal Mining Company, Ltd.		12,000		183,306
Sumitomo Mitsui Financial Group, Inc.		20,600		882,971
Sumitomo Realty & Development Company, Ltd.		9,000		187,984
Sumitomo Rubber Industries, Inc.		2,900		27,706
Sumitomo Titanium Corp.		400		13,450
Sumitomo Trust & Banking Company, Ltd.		34,000		206,297
Suruga Bank, Ltd.		5,000		48,811
Suzuken Company, Ltd.		1,500		49,513
Suzuki Motor Corp.		8,400		199,445
T&D Holdings, Inc.		5,450		162,654
TAIHEIYO CEMENT Corp.		24,000		41,489
Taisei Corp.		25,000		54,579
Taisho Pharmaceuticals Company, Ltd.		3,000		58,804
Taiyo Nippon Sanso Corp.		6,000		63,190
Takashimaya Company, Ltd.		7,000		58,429
Takeda Pharmaceutical Company, Ltd.		17,000		684,856
Tanabe Seiyaku Company, Ltd.		5,000		65,629
TDK Corp.		2,500		144,451
Teijin, Ltd.		20,000		65,683
Terumo Corp.		4,000		209,516
The 77th Bank, Ltd.		9,000		54,134
The Bank of Yokohama, Ltd.		27,000		151,547
The Hachijuni Bank, Ltd.		10,000		57,161
The Hiroshima Bank, Ltd.		13,000		55,530
The Japan Steel Works, Ltd.		7,000		86,535
The Tokyo Electric Power Company, Ltd.		27,500		716,609
THK Company, Ltd.		2,100		39,174
Tobu Railway Company, Ltd.		17,000		106,674
Toho Company, Ltd.		2,300		38,477
Toho Gas Company, Ltd.		10,000		46,224
Tohoku Electric Power Company, Inc.		9,300		201,030
Tokio Marine Holdings, Inc.		16,200		479,418
Tokuyama Corp. (a)		5,000		34,644
Tokyo Broadcasting Company, Ltd.		1,000		17,368
Tokyo Electron, Ltd.		4,100		221,220
Tokyo Gas Company, Ltd.		55,000		220,214
Tokyo Steel Manufacturing Company, Ltd.		2,400		31,459
Tokyo Tatemono Company, Ltd.		7,000		41,053
Tokyu Corp.		24,000		117,814
Tokyu Land Corp.		10,000		46,499
TonenGeneral Sekiyu K.K.		6,000		57,263
Toppan Printing Company, Ltd.		12,000		118,423
Toray Industries, Inc.		29,000		168,869
Toshiba Corp.		87,000		444,401
Tosoh Corp.		12,000		34,776
Toto, Ltd.		7,000		48,529
Toyo Seikan Kaisha, Ltd.		3,900		81,310
Toyo Suisan Kaisha, Ltd.		2,000		50,954
Toyoda Gosei Company, Ltd.		1,600		45,939
Toyota Boshoku Corp.		1,800		31,534
Toyota Industries Corp.		4,100		109,996
Toyota Motor Corp.		64,200		2,737,761
Toyota Tsusho Corp.		5,100		82,096
Trend Micro, Inc.		2,500		98,248
Tsumura & Company, Ltd.		1,300		46,030
Ube Industries, Ltd.		22,000		68,035
UNI Charm Corp.		1,000		89,588
UNY Company, Ltd.		3,500		29,520
Ushio, Inc.		2,900		53,197
USS Company, Ltd.		570		35,719
West Japan Railway Company, Ltd.		36		124,636
Yahoo Japan Corp.		309		105,157
Yakult Honsha Company, Ltd.		1,700		41,870
Yamada Denki Company, Ltd.		2,000		135,786
Yamaguchi Financial Group, Inc.		4,000		45,927
Yamaha Corp.		3,400		43,738
Yamaha Motor Company, Ltd.		4,500		52,696
Yamato Kogyo Company, Ltd.		700		20,779
Yamato Transport Company, Ltd.		9,000		149,125
Yamazaki Baking Company, Ltd.		2,000		27,023
YASKAWA Electric Corp.		4,000		28,733
Yokogawa Electric Corp.		4,400		37,583
				48,596,803
Luxembourg - 0.30%
ArcelorMittal		20,200		728,572
Millicom International Cellular SA, ADR *		1,565		109,505
SES, ADR		6,561		128,668
				966,745
Malaysia - 0.57%
AirAsia BHD *		17,100		6,612
AMMB Holdings BHD		33,700		39,174
Asiatic Development BHD		12,400		20,690
Berjaya Sports Toto BHD		14,035		17,119
British American Tobacco Malaysia BHD		2,500		32,566
Bursa Malaysia BHD		7,600		16,840
Commerce Asset Holdings BHD		63,700		178,904
Digi.Com BHD		10,400		65,131
Gamuda BHD		49,500		42,966
Genting BHD		45,200		85,140
Hong Leong Bank BHD		11,600		19,717

The accompanying notes are an integral part of the financial statements.

172

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Malaysia (continued)
Hong Leong Credit BHD		4,400	$	6,450
IGB Corp. BHD		13,900		7,131
IJM Corp. BHD		30,900		52,253
IOI Corp. BHD		72,000		103,911
KLCC Property Holdings BHD		8,900		8,320
KNM Group BHD		100,800		21,130
Kuala Lumpur Kepong BHD		13,400		50,245
Lafarge Malayan Cement BHD		7,380		12,928
Malayan Banking BHD		82,787		151,995
Malaysian Airline System BHD *		7,200		6,444
Malaysian Plantations BHD		32,900		22,167
MISC BHD		28,400		70,274
MMC Corp. BHD		44,200		29,229
Parkson Holdings BHD		18,700		28,147
Petronas Dagangan BHD		5,200		12,750
Petronas Gas BHD		16,800		46,412
PLUS Expressways BHD		35,400		33,892
PPB Group BHD		10,200		44,424
Public Bank BHD		1,114		3,139
Public Bank BHD		27,000		76,058
Resorts World BHD		81,800		64,394
RHB Capital BHD		3,200		4,285
Sime Darby BHD		72,938		170,225
SP Setia BHD		15,150		19,184
Tanjong PLC		2,800		12,158
Telekom Malaysia BHD		30,000		26,500
Tenaga Nasional BHD		48,600		110,361
TM International BHD *		63,125		56,168
UEM Land Holdings BHD *		20,250		9,143
UMW Holdings BHD		7,100		12,414
YTL Corp. BHD		12,300		25,655
YTL Power International BHD		40,903		25,635
				1,848,280
Mexico - 0.93%
Alfa SA de CV		10,600		46,316
America Movil SAB de CV, Series L, ADR		577		26,052
America Movil SAB de CV, Series L		425,100		956,887
Carso Global Telecom SAB de CV *		17,700		72,103
Cemex SA de CV, SADR *		775		10,292
Cemex SA de CV *		163,431		216,370
Coca-Cola Femsa SA de CV		10,100		45,144
Desarrolladora Homex SA de CV *		3,500		20,590
Fomento Economico Mexicano SA de CV		51,200		185,948
Grupo Aeroportuario del Pacifico SA de CV, Series B		15,900		41,506
Grupo Bimbo SA de CV		12,300		71,244
Grupo Carso SA de CV		20,301		64,532
Grupo Elektra SA de CV		1,500		57,150
Grupo Financiero Banorte SA de CV		34,018		100,340
Grupo Financiero Inbursa SA de CV		13,033		34,968
Grupo Mexico SAB de CV, Series B *		103,907		149,392
Grupo Modelo SA *		11,700		42,702
Grupo Televisa SA, SADR		940		16,431
Grupo Televisa SA		53,300		186,670
Industrias Penoles SA de CV		3,400		53,011
Kimberly-Clark de Mexico SA de CV		11,000		47,380
Mexichem SAB de CV		38,825		50,529
Telefonos de Mexico SA de CV		143,800		134,278
Telmex Internacional SAB de CV		141,200		91,143
Urbi Desarrollos Urbanos SA de CV *		15,400		29,406
Wal-Mart de Mexico SA de CV, Series V		72,388		255,906
				3,006,290
Netherlands - 1.74%
Aegon NV *		37,264		282,289
Akzo Nobel NV		5,611		318,020
ASML Holding NV		11,299		310,655
Corio NV		1,776		108,684
Fugro NV		1,240		66,939
Heineken Holding NV		2,633		93,334
Heineken NV (a)		6,398		270,196
ING Groep NV *		44,161		668,280
Koninklijke (Royal) Philips Electronics NV		21,746		492,965
Koninklijke Ahold NV		26,479		310,788
Koninklijke Boskalis Westinster NV		2,309		72,858
Koninklijke DSM NV		4,177		152,549
Koninklijke KPN NV		38,592		593,509
Randstad Holdings NV *		2,668		110,654
Reed Elsevier NV		15,928		169,058
SBM Offshore NV		2,903		60,378
STMicroelectronics NV (a)		15,867		137,584
TNT Post Group NV		8,067		199,571
Unilever NV		38,291		1,070,554
Wolters Kluwer NV		5,728		113,600
				5,602,465
New Zealand - 0.09%
Auckland International Airport, Ltd.		27,486		32,605
Contact Energy, Ltd.		5,169		22,157
Fletcher Building, Ltd.		20,120		108,418
Sky City Entertainment Group, Ltd.		13,600		30,524
Telecom Corp. of New Zealand, Ltd.		47,399		88,972
				282,676
Norway - 0.43%
Den Norske Bank ASA *		17,000		174,464
Norsk Hydro ASA *		16,903		101,745
Orkla ASA		16,381		131,597
Renewable Energy Corp. AS *		8,843		60,133
StatoilHydro ASA		27,840		609,137
Telenor ASA *		18,000		169,848
Yara International ASA		5,000		135,789
				1,382,713
Peru - 0.09%
Cia Minera Milpo SAA		22,253		54,230
Compania de Minas Buenaventura SA		2,418		62,077
Compania de Minas Buenaventura SA, ADR		1,499		37,880
Credicorp SA		840		60,060
Credicorp, Ltd., ADR		546		38,995
Southern Peru Copper Corp.		1,346		37,822
				291,064
Philippines - 0.11%
Ayala Corp.		8,363		52,366

The accompanying notes are an integral part of the financial statements.

173

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Philippines (continued)
Ayala Land, Inc.		118,600	$	25,945
Banco De Oro		49,014		35,557
Bank of the Philippine Islands		58,268		53,469
Globe Telecommunications, Inc.		690		14,256
Jollibee Foods Corp.		9,000		9,492
Manila Electric Company		9,142		37,466
Metropolitan Bank & Trust Company		12,800		10,189
Philippine Long Distance Telephone Company		1,100		56,754
PNOC Energy Development Corp.		132,801		12,173
SM Investments Corp.		3,594		24,422
SM Prime Holdings, Ltd.		84,941		18,202
				350,291
Poland - 0.27%
Bank Handlowy w Warszawie SA *		917		20,418
Bank Millennium SA *		18,629		32,707
Bank Pekao SA *		2,443		125,266
Bank Zachodni WBK SA *		915		43,294
Boryszew SA *		550		851
BRE Bank SA *		340		29,859
Computerland SA *		160		895
Cyfrowy Polsat SA		2,783		15,375
Getin Holding SA *		12,724		39,770
Globe Trade Centre SA *		4,447		39,747
Grupa Lotos SA *		2,585		23,593
ING Bank Slaski SA *		96		19,576
KGHM Polska Miedz SA		2,367		71,144
PBG SA *		99		7,692
Polish Oil & Gas Company		19,646		26,672
Polski Koncern Naftowy Orlen SA *		8,002		82,016
Powszechna Kasa Oszczednosci Bank Polski SA *		12,938		160,325
Softbank SA		1,956		42,993
Telekomunikacja Polska SA		13,809		77,933
TVN SA		277		1,389
				861,515
Portugal - 0.26%
Banco Comercial dos Acores SA		88,835		116,513
Banco Espirito Santo SA		14,371		94,713
Brisa Auto Estrada, SA		3,494		31,000
Cimpor-Cimentos De Portugal SA (a)		4,112		30,162
EDP Renovaveis SA *		8,841		87,786
Electricidade de Portugal SA		39,468		170,756
Galp Energia SGPS SA		3,671		53,257
Jeronimo Martins, SGPS SA		8,639		67,479
Portugal Telecom, SGPS, SA		18,200		188,282
				839,948
Russia - 1.07%
Comstar United Telesystems, GDR *		2,058		10,187
Federal Grid Company Unified Energy System JSC, GDR *		1,540		6,468
Gazprom Neft, SADR		1,693		29,543
Gazprom OAO, SADR		61,345		1,300,514
Gazprom OAO, SADR		2,675		56,710
JSC MMC Norilsk Nickel, ADR *		22,134		245,687
Lukoil Oil Company, ADR		12,797		630,252
Mechel Steel Group, ADR		3,056		37,314
Mobile Telesystems, SADR		4,755		206,272
NovaTek OAO, ADR		2,066		80,521
Novolipetsk Steel, ADR *		2,416		57,984
Polyus Gold Company ZAO, SADR		3,630		65,340
Rosneft Oil Company, GDR *		19,280		124,356
Rostelecom, ADR		877		26,503
Severstal, ADR		4,900		36,407
Sibirtelecom, ADR		424		2,290
Sistema JSFC, Reg. S, GDR *		1,820		28,757
Surgutneftegaz, ADR		18,526		159,324
Tatneft, ADR *		6,077		151,925
UralsvyAzinform, ADR		1,471		5,634
Vimpel-Communications, SADR *		6,839		105,594
VolgaTelecom, ADR		1,172		3,633
VTB Bank OJSC, GDR		20,343		56,829
Wimm-Bill-Dann Foods OJSC, ADR *		286		18,107
				3,446,151
Singapore - 0.94%
Ascendas, REIT *		24,000		27,456
Capitaland, Ltd.		65,500		168,390
CapitaMall Trust *		52,200		58,993
City Developments, Ltd.		10,000		68,879
ComfortDelGro Corp., Ltd.		63,000		67,765
Cosco Corp. Singapore, Ltd.		31,000		26,846
DBS Group Holdings, Ltd.		41,500		363,598
Fraser and Neave, Ltd.		26,000		69,390
Genting International PLC *		117,000		81,746
Golden Agri-Resources, Ltd. *		220,240		72,493
Jardine Cycle and Carriage, Ltd.		2,254		36,260
Keppel Corp., Ltd.		27,210		143,689
Neptune Orient Lines, Ltd.		29,750		33,187
Olam International, Ltd.		21,500		36,702
Oversea-Chinese Banking Corp., Ltd.		60,550		324,919
SembCorp Industries, Ltd.		20,000		44,496
SembCorp Marine, Ltd.		28,600		61,249
Singapore Airlines, Ltd.		13,140		117,283
Singapore Airport Terminal Services, Ltd.		9,592		16,432
Singapore Exchange, Ltd.		23,000		133,286
Singapore Press Holdings, Ltd.		35,000		88,832
Singapore Technologies Engineering, Ltd.		28,000		50,281
Singapore Telecommunications, Ltd.		190,950		415,794
StarHub, Ltd.		17,000		25,950
United Overseas Bank, Ltd.		30,000		347,282
UOL Group, Ltd.		18,000		42,799
Wilmar International, Ltd.		23,000		104,382
				3,028,379
South Africa - 1.30%
ABSA Group, Ltd.		6,909		112,691
African Bank Investments, Ltd.		14,629		54,322
African Rainbow Minerals, Ltd.		2,003		41,504
Anglo Platinum, Ltd. *		1,342		119,275
AngloGold Ashanti, Ltd.		6,626		254,584
Aspen Pharmacare Holdings, Ltd. *		4,629		34,835
Aveng, Ltd.		8,562		45,338

The accompanying notes are an integral part of the financial statements.

174

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
South Africa (continued)
Bidvest Group, Ltd.		6,322	$	91,928
Discovery Holdings, Ltd., ADR		1		4
FirstRand, Ltd.		58,947		120,496
Foschini, Ltd.		3,146		24,697
Gold Fields, Ltd.		14,170		171,921
Growthpoint Properties, Ltd.		31,561		56,084
Harmony Gold Mining Company, Ltd. *		8,001		75,266
Hulamin, Ltd.		83		149
Impala Platinum Holdings, Ltd.		11,861		277,760
Imperial Holdings, Ltd.		2,765		26,403
Investec, Ltd.		4,018		30,181
Kumba Iron Ore, Ltd.		1,397		45,224
Kumba Resources, Ltd.		1,715		20,396
Liberty Holdings, Ltd.		1,135		9,417
Massmart Holdings, Ltd.		3,424		34,154
Mittal Steel South Africa, Ltd.		3,287		49,328
MTN Group, Ltd.		33,605		550,655
Murray & Roberts Holdings, Ltd.		5,381		38,084
Naspers, Ltd.		8,443		276,516
Nedbank Group, Ltd.		3,842		56,941
Network Healthcare Holdings, Ltd. *		20,102		26,698
Pick’n Pay Stores, Ltd.		4,684		22,719
Pretoria Portland Cement Company, Ltd.		8,925		36,891
Remgro, Ltd.		9,068		100,318
Reunert, Ltd.		2,083		13,631
RMB Holdings, Ltd.		14,519		49,435
Sanlam, Ltd.		43,356		114,435
Sappi, Ltd.		7,504		29,122
Sasol, Ltd.		13,481		507,652
Shoprite Holdings, Ltd.		8,716		65,042
Standard Bank Group, Ltd.		25,352		327,880
Steinhoff International Holdings, Ltd. *		23,609		52,836
Telkom SA, Ltd.		4,799		26,802
Tiger Brands, Ltd.		3,263		65,301
Truworths International, Ltd.		8,531		43,318
Vodacom Group Pty, Ltd. *		7,004		51,889
Woolworths Holdings, Ltd.		12,339		25,050
				4,177,172
South Korea - 2.60%
Amorepacific Corp.		56		32,641
Asiana Airlines, Inc. *		676		2,034
Busan Bank		5,225		47,013
Cheil Industries, Inc.		830		34,008
CJ CheilJedang Corp.		238		31,803
Daegu Bank		4,210		49,007
Daelim Industrial Company, Ltd.		690		39,793
Daewoo Engineering & Construction Company, Ltd.		1,909		21,265
Daewoo International Corp.		996		22,990
Daewoo Securities Company, Ltd.		3,370		61,852
Daewoo Shipbuilding & Marine Engineering Company, Ltd.		1,600		25,601
DC Chemical Company, Ltd.		280		55,790
Dongbu Insurance Company, Ltd.		1,320		40,124
Dongkuk Steel Mill Company, Ltd.		1,380		32,233
Doosan Corp.		310		20,659
Doosan Heavy Industries and Construction Company, Ltd.		1,150		58,332
Doosan Infracore Company, Ltd.		2,880		40,427
GS Engineering & Construction Corp.		860		65,833
GS Holdings Corp.		1,810		47,785
Hana Financial Group, Inc.		4,350		113,934
Hanjin Heavy Industries & Construction Company, Ltd.		1,508		33,294
Hanjin Shipping Company, Ltd.		2,640		45,832
Hankook Tire Company, Ltd.		1,200		21,317
Hanwha Chemical Corp.		704		7,320
Hanwha Corp.		750		26,284
Hite Brewery Company, Ltd.		147		19,220
Hite Holdings Company, Ltd.		183		5,857
Honam Petrochemical Corp.		220		16,508
Hynix Semiconductor, Inc. *		12,430		218,263
Hyosung Corp.		840		60,689
Hyundai Department Store Company, Ltd.		210		16,068
Hyundai Development Company		1,320		48,160
Hyundai Engineering & Construction Company, Ltd.		940		45,272
Hyundai Heavy Industries Company, Ltd.		810		123,354
Hyundai Mipo Dockyard Company, Ltd.		360		35,578
Hyundai Mobis		1,420		150,541
Hyundai Motor Company, Ltd.		3,710		314,635
Hyundai Securities Company, Ltd.		4,428		59,140
Hyundai Steel Company		1,580		100,235
Industrial Bank of Korea *		6,000		64,767
Kangwon Land, Inc.		1,790		23,640
KB Financial Group, Inc., ADR *		2,563		104,494
KB Financial Group, Inc. *		5,269		216,098
KCC Corp.		70		17,814
Kia Motors Corp. *		6,270		84,751
Korea Electric Power Corp. *		5,483		136,736
Korea Exchange Bank		4,670		41,460
Korea Express Company, Ltd. *		272		15,218
Korea Gas Corp.		780		31,271
Korea Investment Holdings Company, Ltd.		620		17,756
Korea Line Corp.		240		10,175
Korea Zinc Company, Ltd.		290		31,511
Korean Air Lines Company, Ltd. *		497		16,624
Korean Reinsurance Company, Ltd.		12		109
KT Corp.		3,252		101,001
KT&G Corp.		2,620		141,167
Kumho Industrial Company, Ltd.		960		10,021
LG Chem, Ltd.		1,079		162,740
LG Corp.		1,980		120,575
LG Dacom Corp.		2,070		30,484
LG Display Company, Ltd., ADR (a)		439		6,357
LG Display Company, Ltd.		5,506		162,630
LG Electronics, Inc.		2,250		257,403
LG Household & Health Care, Ltd.		140		24,280
LG Telecom, Ltd.		5,209		32,474
Lotte Confectionery Company, Ltd.		20		16,608
Lotte Shopping Company, Ltd.		180		40,979
LS Cable, Ltd.		410		27,083
Mirae Asset Securities Company, Ltd.		454		26,509

The accompanying notes are an integral part of the financial statements.

175

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
NHN Corp. *		875	$	119,038
POSCO, SADR		575		52,589
POSCO		1,470		539,928
S1 Corp.		840		33,891
Samsung Card Company, Ltd.		1,190		48,566
Samsung Corp.		2,837		127,114
Samsung Digital Imaging Company, Ltd. *		647		21,183
Samsung Electro-Mechanics Company, Ltd.		1,660		118,610
Samsung Electronics Company, Ltd.		2,511		1,545,787
Samsung Engineering Company, Ltd.		600		38,942
Samsung Fire & Marine Insurance Company, Ltd.		810		145,226
Samsung Heavy Industries Company, Ltd.		4,611		108,182
Samsung SDI Company, Ltd.		790		93,461
Samsung Securities Company, Ltd.		1,180		70,613
Samsung Techwin Company, Ltd.		752		46,784
Shinhan Financial Group Company, Ltd. *		9,293		304,722
Shinsegae Company, Ltd.		330		136,838
SK Corp.		563		47,307
SK Energy Company, Ltd.		1,256		100,627
SK Networks Company, Ltd.		2,740		26,960
SK Telecom Company, Ltd.		927		129,883
S-Oil Corp.		1,520		69,965
STX Pan Ocean Company, Ltd.		4,057		36,014
STX Shipbuilding Company, Ltd.		1,620		19,244
Taewoong Company, Ltd.		440		28,258
Taihan Electric Wire Company, Ltd.		900		16,449
Tong Yang Investment Bank		1		13
Woongjin Coway Company, Ltd.		1,690		46,612
Woori Finance Holdings Company, Ltd. *		7,600		85,377
Woori Investment & Securities Company, Ltd.		3,040		42,550
Yuhan Corp.		126		19,512
				8,383,671
Spain - 3.08%
Abertis Infraestructuras SA		5,918		128,946
Acciona SA		503		65,225
Acerinox SA		2,956		62,544
ACS Actividades SA		3,091		159,484
Banco Bilbao Vizcaya Argentaria SA		80,801		1,441,347
Banco de Sabadell SA (a)		18,941		142,914
Banco de Valencia SA		3,702		37,183
Banco Popular Espanol SA		15,764		169,900
Banco Santander Central Hispano SA		185,018		2,853,747
Bankinter SA, ADR		5,678		75,484
Cintra Concesiones de Infraestructuras de Transporte SA		4,082		36,159
Corporacion Mapfre SA		13,372		55,051
Criteria Caixacorp SA		18,837		94,655
Enagas		3,943		77,898
Fomento de Construcciones SA		688		27,789
Gamesa Corporacion Tecnologica SA		3,654		80,392
Gas Natural SDG SA		5,044		106,168
Gestevision Telecinco SA		1,373		15,408
Grifols SA		2,615		46,009
Grupo Ferrovial SA		974		35,855
Iberdrola Renovables SA		17,220		79,244
Iberdrola SA		82,994		770,489
Iberia Lineas Aereas de Espana SA *		5,605		14,041
Indra Sistemas SA		1,985		47,126
Industria de Diseno Textil SA		4,796		261,483
Red Electrica De Espana		2,241		105,165
Repsol YPF SA		16,373		406,962
Sacyr Vallehermoso SA		1,366		22,861
Telefonica SA		96,571		2,438,283
Zardoya Otis SA		3,028		66,239
				9,924,051
Sweden - 1.67%
Alfa Laval AB (a)		7,500		83,950
Assa Abloy AB, Series B		7,000		112,238
Atlas Copco AB, Series A, ADR		15,828		199,906
Atlas Copco AB, Series B, ADR		9,473		106,539
Electrolux AB, Series B *		5,219		108,618
Ericsson (LM), Series B		66,000		633,218
Getinge AB, Series B (a)		4,266		73,258
Hennes & Mauritz AB, B shares		11,500		638,061
Holmen AB, Series B		1,300		36,974
Husqvarna AB, B Shares *		9,889		70,383
Investor AB, B shares		9,800		182,923
Lundin Petroleum AB, Series A *		4,175		38,312
Nordea Bank AB		72,675		763,421
Sandvik AB		21,818		220,775
Scania AB, Series B		7,000		86,616
Securitas AB, Series B		6,000		58,647
Skandinaviska Enskilda Banken AB, Series A *		35,880		252,490
Skanska AB, Series B		9,000		130,635
SKF AB, B Shares		8,900		136,387
SSAB Svenskt Stal AB, Series A (a)		4,300		62,978
SSAB Svenskt Stal AB, Series B		1,150		15,291
Svenska Cellulosa AB, B Shares		13,200		172,572
Svenska Handelsbanken AB, Series A		10,700		281,255
Swedbank AB, Class A (a)		7,100		74,475
Swedish Match AB		5,500		105,922
Tele2 AB, Series B		7,491		104,306
Teliasonera AB		49,500		321,737
Volvo AB, Series A		9,356		80,421
Volvo AB, Series B		25,700		225,702
				5,378,010
Switzerland - 5.54%
ABB, Ltd. *		52,157		1,005,591
Actelion, Ltd. *		2,327		134,420
Adecco SA		3,116		149,803
Aryzta AG *		3,099		115,392
Baloise Holding AG		1,302		118,021
BKW FMB Energie AG		713		56,328
Compagnie Financiere Richemont SA		12,496		341,693
Credit Suisse Group AG		26,573		1,354,358
Geberit AG, ADR		1,035		159,570
Givaudan AG		195		140,347
Holcim, Ltd. *		5,855		396,288
Julius Baer Holding AG		5,802		296,135
Kuehne & Nagel International AG		1,388		110,357

The accompanying notes are an integral part of the financial statements.

176

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Switzerland (continued)
Lindt & Spruengli AG-PC		36	$	76,630
Lindt & Spruengli AG-REG		5		122,900
Logitech International SA *		7,398		136,788
Lonza Group AG		1,137		111,711
Nestle SA		84,624		3,517,240
Nobel Biocare Holding AG, Series BR		4,707		144,173
Novartis AG		49,782		2,311,583
Pargesa Holding SA, ADR		1,087		86,553
Phonak Holding AG		1,200		114,967
Roche Holdings AG - Genusschein		16,356		2,602,617
Schindler Holding AG		2,032		132,074
Societe Generale de Surveillance Holdings AG		110		136,272
Straumann Holding AG		338		76,910
Swatch Group AG, BR shares		784		169,726
Swatch Group AG		2,256		95,822
Swiss Life Holding *		787		89,437
Swiss Re		8,246		382,598
Swisscom AG		621		214,749
Syngenta AG		2,311		543,570
Synthes AG		1,515		177,551
UBS AG - Swiss Exchange *		76,339		1,411,574
Unaxis Holding AG *		774		48,506
Zurich Financial Services AG		3,478		766,759
				17,849,013
Taiwan - 1.82%
Acer Sertek, Inc.		57,120		129,780
Advanced Semiconductor Engineering, Inc.		94,302		66,800
Advantech Company, Ltd.		1,519		2,441
Asia Cement Corp.		28,611		30,400
Asia Optical Company, Inc.		79		119
Asustek Computer, Inc.		80,739		128,066
AU Optronics Corp.		160,701		159,587
BenQ Corp. *		12,400		5,707
Catcher Technology Company, Ltd.		7,870		20,244
Cathay Financial Holdings Company, Ltd. *		127,750		177,985
Chang Hwa Commercial Bank, Ltd.		82,000		34,139
Cheng Shin Rubber Industry Company, Ltd.		13,602		25,860
Cheng Uei Precision Industry Company, Ltd.		2,664		4,975
Chi Mei Optoelectronics Corp. *		104,454		50,908
China Airlines, Ltd. *		24,716		8,337
China Development Financial Holdings Corp. *		179,352		41,221
China Motor Company, Ltd. *		55		30
China Steel Corp.		213,204		193,154
Chinatrust Finance Holding Company, Ltd.		176,110		97,541
Chunghwa Picture Tubes, Ltd. *		135,000		14,962
Chunghwa Telecom Company, Ltd. *		114,882		196,660
CMC Magnetics Corp. *		29,000		6,286
Compal Communications, Inc. *		410		363
Compal Electronics, Inc.		73,069		73,460
Delta Electronics, Inc.		35,893		95,738
D-Link Corp.		743		571
E.Sun Financial Holding Company, Ltd. *		65,343		20,194
Epistar Corp.		8,946		26,187
Eternal Chemical Company, Ltd.		3,353		2,899
EVA Airways Corp. *		24,000		5,509
Evergreen Marine Corp. *		11,000		6,630
Everlight Electronics Company, Ltd. *		2,039		5,615
Far Eastern Department Stores Company, Ltd.		6,489		5,631
Far Eastern Textile, Ltd.		56,145		55,786
Far EasTone Telecommunications Company, Ltd.		30,463		34,323
First Financial Holding Company, Ltd.		105,596		57,088
Formosa Chemicals & Fibre Corp.		58,710		102,648
Formosa Petrochemical Corp.		26,780		63,205
Formosa Plastic Corp.		85,600		153,595
Formosa Taffeta Company, Ltd.		9,000		5,650
Foxconn Technology Company, Ltd.		12,790		32,554
Fubon Group Company, Ltd. *		83,000		77,282
Fuhwa Financial Holdings Company, Ltd.		153,825		94,644
HannStar Display Corp. *		63,921		13,350
High Tech Computer Corp.		14,196		142,303
Hon Hai Precision Industry Company, Ltd.		173,027		578,444
Hua Nan Financial Holdings Company, Ltd.		63,427		34,381
InnoLux Display Corp.		42,728		47,677
Inotera Memories, Inc. *		4,780		2,684
Inventec Appliances Corp.		651		582
Inventec Company, Ltd.		38,808		21,400
KGI Securities Company, Ltd.		23,000		9,664
Kinsus Interconnect Technology Corp.		527		1,091
Largan Precision Company, Ltd.		2,121		25,682
Lite-On Technology Corp.		44,316		49,426
Macronix International Company, Ltd.		69,453		32,903
MediaTek, Inc.		20,088		290,899
Mega Financial Holding Company, Ltd.		171,000		84,892
Mitac International		8,691		3,529
Mosel Vitelic, Inc. *		600		120
Motech Industries, Inc.		3,490		8,689
Nan Ya Plastics Corp.		109,180		151,751
Nan Ya Printed Circuit Board Corp.		2,147		6,967
Nanya Technology Corp. *		18,915		9,732
Novatek Microelectronics Corp., Ltd.		10,326		24,152
Pan-International Industrial Company, Ltd.		104		116
Polaris Securities Company, Ltd. *		43,990		21,210
Pou Chen Corp.		50,557		31,223
Powerchip Semiconductor Corp. *		170,386		16,866
Powertech Technology, Inc.		11,607		31,576
President Chain Store Corp.		7,952		18,292
Quanta Computer, Inc.		46,625		96,326
Realtek Semiconductor Corp.		9,194		19,347
Richtek Technology Corp.		1,155		9,123
Shin Kong Financial Holding Company, Ltd. *		88,791		30,359
Siliconware Precision Industries Company		62,665		78,168
Sino-American Silicon Products, Inc.		1,302		2,586
SinoPac Holdings Company, Ltd. *		107,000		31,929
Synnex Technology International Corp.		21,477		37,380
Taishin Financial Holdings Company, Ltd. *		71,000		23,382
Taiwan Cellular Corp.		41,802		65,569
Taiwan Cement Corp.		62,205		67,212
Taiwan Cooperative Bank		62,100		34,161
Taiwan Fertilizer Company, Ltd.		16,000		46,189
Taiwan Glass Industrial Corp.		10,080		6,263
Taiwan Semiconductor Manufacturing Company, Ltd.		554,788		994,646

The accompanying notes are an integral part of the financial statements.

177

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)
	Shares or
	Principal
	Amount		Value
COMMON STOCKS (continued)
Taiwan (continued)
Tatung Company, Ltd. *		46,000	$	9,758
Teco Electric & Machinery Company, Ltd.		29,000		11,891
Transcend Information, Inc.		2,099		6,978
Tripod Technology Corp.		8,542		18,910
Tung Ho Steel Enterprise Corp.		6,180		6,283
U-Ming Marine Transport Corp.		7,000		11,314
Unimicron Technology Corp.		17,513		18,355
Uni-President Enterprises Corp.		73,708		76,175
United Microelectronics Corp. *		254,729		104,007
Vanguard International Semiconductor Corp.		284		120
Wafer Works Corp.		32		44
Walsin Lihwa Corp. *		39,000		12,799
Wan Hai Lines, Ltd. *		11,400		5,643
Wistron Corp.		26,866		51,851
Ya Hsin Industrial Company, Ltd. * (l)		18,000		0
Yang Ming Marine Transport Corp.		7,609		2,820
Yulon Motor Company, Ltd.		15,449		13,460
Zinwell Corp.		180		330
				5,867,753
Thailand - 0.27%
Advanced Info Service PCL		23,609		59,873
Bangkok Bank PCL, Foreign Shares		22,900		74,956
Bangkok Bank PCL		6,600		9,718
Bank of Ayudhya PCL, Foreign Shares		141,800		74,755
Banpu PCL		2,300		27,184
BEC World PCL		18,400		10,117
C.P. Seven Eleven PCL		49,000		24,349
Glow Energy PCL		32,900		29,746
IRPC PCL		254,154		28,696
Kasikornbank PCL - Foreign Shares		28,100		62,837
Krung Thai Bank PCL		57,000		14,413
Land & Houses PCL, Foreign Shares		7,800		1,527
PTT Aromatics & Refining PCL		17,600		11,230
PTT Chemical PCL		6,700		13,002
PTT Exploration & Production PCL		30,706		125,045
PTT PCL - Foreign Shares		18,082		129,727
Ratchaburi Electricity Generating Holding PCL		5,900		6,549
Siam Cement PCL - Foreign Shares		4,800		28,036
Siam Commercial Bank PCL		26,128		59,155
Thai Oil PCL		32,800		39,059
TMB Bank PCL *		360,144		11,225
Total Access Communication PCL		32,000		31,143
				872,342
Turkey - 0.34%
Adana Cimento Sanayii Turk Anonim Sirketi,
Class A		442		1,519
Akbank AS		18,584		106,958
Aksigorta AS		2,924		9,968
Anadolu Efes Biracilik Ve Malt Sanayii AS		3,888		42,592
Arcelik AS *		22		63
Asya Katilim Bankasi AS *		22,456		41,762
BIM Birlesik Magazalar AS		1,567		58,556
Coca-Cola Icecek AS		4,126		28,940
Dogan Sirketler Grubu Holdings AS *		20,271		19,130
Enka Insaat ve Sanayi AS		3,082		12,455
Eregli Demir ve Celik Fabrikalari *		3,894		15,493
HACI Omer Sabanci Holdings, AS		12,319		47,765
KOC Holdings AS *		20,858		55,497
Petkim Petrokimya Holding AS *		1,680		8,030
Tupras Turkiye Petrol Rafine AS		4,261		64,061
Turk Sise ve Cam Fabrikalari AS *		8,677		9,221
Turk Telekomunikasyon AS		9,846		30,108
Turkcell Iletisim Hizmetleri AS, ADR		819		13,194
Turkcell Iletisim Hizmetleri AS		17,555		114,262
Turkiye Garanti Bankasi AS *		48,998		182,036
Turkiye Halk Bankasi AS		12,137		65,843
Turkiye Is Bankasi AS		23,527		93,654
Turkiye Vakiflar Bankasi Tao *		18,789		41,745
Yapi ve Kredi Bankasi AS *		20,051		42,377
				1,105,229
United Kingdom - 14.43%
3i Group PLC		19,553		95,924
Admiral Group PLC		3,594		62,274
AMEC PLC		8,122		99,237
Anglo American PLC *		29,911		974,101
Antofagasta PLC		10,214		126,235
Associated British Foods PLC		8,823		114,632
AstraZeneca Group PLC		33,791		1,557,003
Astro All Asia Networks PLC, GDR		11,900		11,706
Autonomy Corp. PLC *		4,495		94,527
Aviva PLC		65,145		426,494
BAE Systems PLC		84,407		426,523
Barclays PLC *		257,221		1,576,578
Berkeley Group Holdings PLC *		3,634		55,734
BG Group PLC		78,460		1,294,333
BHP Billiton PLC		51,580		1,353,440
BICC PLC		9,030		48,978
BP PLC		435,699		3,750,195
British Airways PLC *		20,191		62,529
British American Tobacco PLC		46,622		1,417,601
British Land Company PLC		20,273		158,693
British Sky Broadcasting Group PLC		27,307		241,743
BT Group PLC		172,568		391,041
Bunzl PLC		7,295		69,508
Burberry Group PLC		10,584		82,842
Cable & Wireless PLC		59,243		142,295
Cadbury PLC		30,113		283,914
Cairn Energy PLC *		3,678		149,454
Capita Group PLC		13,421		148,412
Carnival PLC *		3,711		113,376
Carphone Warehouse Group PLC		15,560		46,291
Centrica PLC		122,243		499,577
Cobham PLC		25,061		82,145
Compass Group PLC		44,763		238,023
Diageo PLC		58,617		910,255
Drax Group PLC		11,656		90,496
Eurasian Natural Resources Corp.		6,589		91,652
F&C Asset Management PLC		4,980		6,144
FirstGroup PLC		10,434		64,486
Fresnillo PLC		5,418		54,599
Friends Provident Group PLC *		49,800		69,179

The accompanying notes are an integral part of the financial statements.

178

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
G4S PLC		31,465	$	113,904
GKN PLC *		50,938		89,859
GlaxoSmithKline PLC		120,830		2,365,376
Hammerson PLC		14,014		91,755
Home Retail Group PLC		22,261		112,404
HSBC Holdings PLC		399,906		4,369,066
ICAP PLC		11,716		81,278
Imperial Tobacco Group PLC		24,164		677,875
Intercontinental Hotels Group PLC		4,945		61,327
International Power PLC		32,446		148,000
Invensys PLC		19,865		88,059
Investec PLC		7,072		49,900
J Sainsbury PLC		27,758		147,298
Johnson Matthey PLC		4,443		101,842
Kazakhmys PLC		5,084		80,707
Kingfisher PLC		50,915		174,748
Ladbrokes PLC		21,052		66,382
Land Securities Group PLC		17,766		177,217
Legal & General Group PLC		124,226		154,250
Liberty International PLC *		10,043		85,039
Lloyds TSB Group PLC *		390,780		706,356
London Stock Exchange Group PLC		5,241		68,311
Lonmin PLC, ADR *		3,930		92,544
Man Group PLC, ADR		36,862		159,705
Marks & Spencer Group PLC		34,298		188,730
National Express Group PLC		4,566		29,432
National Grid PLC		60,942		587,449
Next Group PLC		4,541		120,428
Old Mutual PLC		113,883		172,605
Pearson PLC		19,389		235,832
Pharmstandard *		1,382		23,839
PIK Group, GDR *		7,058		13,177
Prudential PLC		55,763		486,661
Randgold Resources, Ltd.		1,609		94,796
Reckitt Benckiser PLC		14,335		663,953
Reed Elsevier PLC		26,445		192,472
Rexam PLC		17,333		75,322
Rio Tinto PLC		32,045		1,225,129
Rolls-Royce Group PLC *		44,888		329,150
Rosneft Oil Company		14,305		90,607
Royal & Sun Alliance PLC		71,474		151,210
Royal Bank of Scotland Group PLC *		372,449		348,566
Royal Dutch Shell PLC, A Shares		82,607		2,286,996
Royal Dutch Shell PLC, B Shares		62,909		1,710,339
SABMiller PLC		21,658		501,869
Schroders PLC		2,112		36,961
Scottish & Southern Energy PLC		22,080		401,258
Segro PLC		20,565		119,386
Serco Group PLC		10,726		81,403
Severn Trent PLC		5,376		85,540
Shire, Ltd.		13,369		221,622
Smith & Nephew PLC		18,968		161,218
Smiths Group PLC		10,178		132,189
Standard Chartered PLC		44,421		1,008,246
Standard Life PLC		51,448		163,840
Tesco PLC		184,060		1,126,925
The Sage Group PLC		26,689		95,429
Thomas Cook Group PLC		6,995		26,336
Thomson Reuters PLC		3,593		113,004
Tomkins PLC		16,313		47,041
TUI Travel PLC		10,291		40,114
Tullow Oil PLC		17,688		308,402
Unilever PLC		29,079		791,666
United Utilities Group PLC		18,200		133,712
Vedanta Resources PLC		4,036		116,657
Vodafone Group PLC		1,265,162		2,727,183
Whitbread PLC		3,455		58,593
William Morrison Supermarket PLC		45,763		206,498
Wolseley PLC *		7,033		164,471
WPP PLC, SADR		30,123		253,213
Xstrata PLC		42,787		566,479
				46,461,319
United States - 0.03%
Southern Copper Corp. (a)		3,100		87,606
TOTAL COMMON STOCKS (Cost $291,356,499)			$	296,642,280
PREFERRED STOCKS - 1.89%
Brazil - 1.62%
AES Tiete SA (k)		1,600		17,199
Aracruz Celulose SA *		9,100		19,120
Banco Bradesco SA (k)		34,550		563,704
Banco do Estado do Rio Grande do Sul (k)		8,516		47,173
Banco Itau Holding Financeira SA (k)		46,381		787,003
Bradespar SA * (k)		5,700		88,462
Brasil Telecom Participacoes SA * (k)		3,800		33,268
Brasil Telecom SA * (k)		1,346		9,748
Braskem SA, A Shares * (k)		6,600		36,630
Centrais Eletricas Brasileiras SA * (k)		5,700		74,853
Cia de Transmissao de Energia Eletrica Paulista (k)		319		8,112
Cia Energetica de Minas Gerais (k)		6,708		98,767
Cia Energetica de Sao Paulo * (k)		5,638		60,397
Cia Paranaense de Energia (k)		1,700		26,456
Companhia Brasileira de Distribuicao Grupo Pao de Acucar (k)		2,139		52,332
Companhia de Bebidas das Americas, ADR (k)		338		25,205
Companhia de Bebidas das Americas (k)		2,923		218,678
Companhia Vale do Rio Doce (k)		47,682		832,354
Eletropaulo Metropolitana de Sao Paulo SA (k)		1,611		29,892
Fertilizantes Fosfatados SA * (k)		1,100		10,301
Gerdau SA (k)		16,260		190,320
Investimentos Itau SA (k)		49,859		256,081
Klabin SA (k)		15,000		29,050
Lojas Americanas SA (k)		6,800		40,590
Metalurgica Gerdau SA (k)		6,900		101,118
Net Servicos de Comunicacao SA *		3,259		34,290
Petroleo Brasileiro SA (k)		72,184		1,201,854
Tele Norte Leste Participacoes SA (k)		4,500		72,107
Telemar Norte Leste SA, Series A (k)		400		10,973
Tim Participacoes SA (k)		23,740		49,881
Usinas Siderurgicas de Minas Gerais SA, Series A (k)		5,342		125,564

The accompanying notes are an integral part of the financial statements.

179

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Equity Index Fund (continued)

	Shares or Principal Amount		Value
PREFERRED STOCKS (continued)
Brazil (continued)
Vivo Participacoes SA (k)		2,499	$	57,347
				5,208,829
Germany - 0.19%
Bayerische Motoren Werke (BMW) AG (k)		979		29,421
Henkel AG & Company KGaA (k)		4,162		164,519
Porsche Automobil Holding SE (k)		1,855		136,820
RWE AG (k)		752		61,273
Volkswagen AG (k)		2,275		213,552
				605,585
Malaysia - 0.00%
Malaysian Airline System BHD *		1,800		373
Russia - 0.02%
Surgutneftegaz SADR (k)		17,331		58,925
South Korea - 0.06%
Hyundai Motor Company, Ltd. (k)		460		16,103
LG Electronics, Inc. (k)		160		7,464
Samsung Electronics Company, Ltd. (k)		480		188,478
				212,045
TOTAL PREFERRED STOCKS (Cost $5,469,818)			$	6,085,757
WARRANTS - 0.00%
Italy - 0.00%
UBI Banca SCPA (Expiration Date 06/30/2011, Strike Price: EUR 12.30) *		23,168		2,298
Malaysia - 0.00%
IJM Land Berhad (Expiration Date 09/11/2013, Strike Price: MYR 1.35) *		3,090		654
Singapore - 0.00%
Golden Agri-Resources, Ltd. (Expiration Date 07/23/2012, Strike Price: SGD 0.54) *		12,800		1,332
TOTAL WARRANTS (Cost $0)			$	4,284
RIGHTS - 0.00%
Belgium - 0.00%
Fortis Group SA (Expiration Date 07/04/2014) *		71,652		0
Japan - 0.00%
Dowa Mining Company, Ltd. (Expiration Date 01/29/2010, Strike Price: JPY 1.00) *		5,000		1,408
TOTAL RIGHTS (Cost $0)			$	1,408
SHORT TERM INVESTMENTS - 4.58%
AIM Short-Term Investment Trust, STIC Prime Portfolio, Institutional Class	$	9,134,637	$	9,134,637
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		559,468	$	5,600,997
TOTAL SHORT TERM INVESTMENTS (Cost $14,730,992)			$	14,735,634
Total Investments (International Equity Index Fund) (Cost $311,557,309) - 98.61%			$	317,469,363
Other assets and liabilities, net - 1.39%				4,460,653
TOTAL NET ASSETS - 100.00%			$	321,930,016

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Banking	13.55	%
International Oil	5.19	%
Telecommunications Equipment & Services	4.84	%
Financial Services	4.44	%
Insurance	4.20	%

International Opportunities Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 93.58%
Australia - 2.10%
CSL, Ltd.		567,893	$	15,435,273
Belgium - 3.65%
Anheuser-Busch InBev NV		622,930		26,908,261
Brazil - 7.01%
Cyrela Brazil Realty SA		259,700		3,264,335
Gafisa SA		616,283		8,930,169
Itau Unibanco Holding SA		659,634		11,048,865
Petroleo Brasileiro SA, ADR (a)		435,080		17,246,571
Vale SA		581,500		11,170,615
				51,660,555
Canada - 0.99%
Suncor Energy, Inc.		238,975		7,310,594
China - 1.02%
Baidu, Inc., SADR * (a)		9,500		3,135,570
Ctrip.com International, Ltd., ADR *		54,700		2,677,018
Longtop Financial Technologies, Ltd. *		67,200		1,659,840
				7,472,428
Denmark - 4.01%
Novozymes AS, B Shares		2,521		216,499
Vestas Wind Systems AS *		408,040		29,307,245
				29,523,744
France - 3.80%
Accor SA (a)		89,162		4,707,482
Alstom SA		165,975		11,704,417
BNP Paribas SA		143,103		11,548,656
				27,960,555
Germany - 6.55%
BASF SE		79,004		4,131,471

The accompanying notes are an integral part of the financial statements.

180

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Opportunities Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
Daimler AG		416,131	$	18,814,005
Hochtief AG		73,034		5,416,007
Infineon Technologies AG *		1,505,265		7,933,938
Metro AG		73,390		3,987,375
Thyssen Krupp AG		232,868		7,939,092
				48,221,888
Hong Kong - 5.36%
Cheung Kong Holdings, Ltd.		1,094,000		12,967,387
CNOOC, Ltd.		5,565,600		7,233,229
Esprit Holdings, Ltd.		1,527,000		9,270,718
Hang Lung Properties, Ltd.		766,000		2,387,043
Noble Group, Ltd.		2,304,000		3,384,478
Sun Hung Kai Properties, Ltd.		186,000		2,506,708
Tencent Holdings, Ltd.		117,000		1,744,618
				39,494,181
India - 2.11%
ICICI Bank, Ltd., SADR		384,706		11,741,227
Reliance Industries, Ltd., GDR * (f)		44,650		3,795,250
				15,536,477
Ireland - 0.64%
CRH PLC		184,037		4,738,752
Israel - 1.49%
ICL Israel Chemicals, Ltd.		16,538		184,866
Teva Pharmaceutical Industries, Ltd., SADR		210,090		10,819,635
				11,004,501
Japan - 11.98%
Daikin Industries, Ltd.		209,605		7,343,109
Daiwa Securities Group, Inc.		2,669,000		16,551,493
FamilyMart Company, Ltd.		116,500		3,605,071
Honda Motor Company, Ltd.		220,600		6,920,937
Marubeni Corp.		3,456,000		17,075,232
Mizuho Financial Group, Inc.		10,210,300		24,878,025
Sumco Corp.		191,400		3,885,796
Sumitomo Realty & Development Company, Ltd.		382,000		7,978,875
				88,238,538
Mexico - 2.85%
Cemex SA de CV, SADR *		1,579,848		20,980,381
Netherlands - 1.54%
ASML Holding NV		411,361		11,309,970
Singapore - 2.43%
Capitaland, Ltd.		5,237,000		13,463,519
Singapore Airlines, Ltd.		434,000		3,873,739
Singapore Airport Terminal Services, Ltd.		316,820		542,732
				17,879,990
South Korea - 0.51%
Hyundai Motor Company, Ltd.		44,386		3,764,257
Spain - 6.58%
Banco Bilbao Vizcaya Argentaria SA		898,510		16,027,827
Gamesa Corporacion Tecnologica SA		634,019		13,949,147
Telefonica SA		732,436		18,492,989
				48,469,963
Switzerland - 13.44%
ABB, Ltd. *		443,078	$	8,542,575
Actelion, Ltd. *		114,880		6,636,087
Credit Suisse Group AG		476,498		24,285,883
Julius Baer Holding AG		158,082		8,068,541
Lonza Group AG		176,906		17,381,066
Nestle SA		183,154		7,612,458
Transocean, Ltd. *		349,149		26,479,460
				99,006,070
Taiwan - 4.48%
Hon Hai Precision Industry Company, Ltd.		4,250,457		14,209,649
Taiwan Semiconductor Manufacturing Company, Ltd., SADR		1,757,838		18,808,867
				33,018,516
United Kingdom - 10.03%
Autonomy Corp. PLC *		249,738		5,251,829
BP PLC		1,304,380		11,227,199
HSBC Holdings PLC		1,695,489		18,523,613
Reckitt Benckiser PLC		141,008		6,531,052
Standard Chartered PLC		327,998		7,444,741
Tesco PLC		1,105,571		6,768,963
Vodafone Group PLC		8,414,049		18,137,320
				73,884,717
United States - 1.01%
NII Holdings, Inc. *		312,837		7,417,365
TOTAL COMMON STOCKS (Cost $561,534,100)			$	689,236,976
SHORT TERM INVESTMENTS - 2.41%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,774,684	$	17,766,894
		��
TOTAL SHORT TERM INVESTMENTS (Cost $17,749,751)			$	17,766,894

The accompanying notes are an integral part of the financial statements.

181

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Opportunities Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 5.09%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $37,504,073 on 09/01/2009, collateralized by $38,115,000 Federal Home Loan Bank, 2.90% due 07/02/2013 (valued at $38,257,931, including interest)	$	37,504,000	$	37,504,000
TOTAL REPURCHASE AGREEMENTS (Cost $37,504,000)			$	37,504,000
Total Investments (International Opportunities Fund) (Cost $616,787,851) - 101.08%			$	744,507,870
Other assets and liabilities, net - (1.08)%				(7,974,705	)
TOTAL NET ASSETS - 100.00%			$	736,533,165

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Financial Services	11.44	%
Banking	8.94	%
Real Estate	6.99	%
Petroleum Services	6.11	%
Semiconductors	5.69	%

International Small Cap Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 100.51%
Australia - 10.31%
Billabong International, Ltd.		582,159	$	5,161,225
Downer EDI, Ltd.		709,028		4,801,760
Emeco Holdings, Ltd.		6,312,426		4,090,327
Iluka Resources, Ltd. *		1,332,182		4,432,095
Pacific Brands, Ltd. *		4,030,539		3,794,478
PaperlinX, Ltd.		3,417,724		1,990,911
				24,270,796
Belgium - 1.75%
Barco NV *		84,270		4,114,193
Canada - 8.69%
ATS Automation Tooling Systems, Inc. *		585,060		2,362,151
Biovail Corp. (a)		298,600		3,815,861
Canaccord Capital, Inc. *		601,000		4,968,303
Dorel Industries, Inc., Class B		89,800		2,472,320
Genworth MI Canada, Inc. *		30,600		684,814
Genworth MI Canada, Inc. *		138,800		3,106,280
GSI Group, Inc. *		352,984		236,499
HudBay Minerals, Inc. *		99,400		766,327
Mullen Group, Ltd.		155,400		2,035,566
				20,448,121
China - 3.35%
Bio-Treat Technology, Ltd. *		6,009,612		291,595
People’s Food Holdings, Ltd.		6,734,174		3,385,729
Sinotrans, Ltd., Class H		17,808,000	$	4,213,613
				7,890,937
Finland - 3.97%
Amer Sports Oyj, A Shares (a)		422,214		4,498,468
Elcoteq SE, A Shares *		146,511		273,557
Huhtamaki Oyj		379,546		4,583,999
				9,356,024
Germany - 1.14%
Jenoptik AG *		552,685		2,673,017
Hong Kong - 12.86%
AAC Acoustic Technology Holdings, Inc.		3,017,952		2,502,090
Dah Sing Financial Group		1,074,374		5,808,096
Fountain Set Holdings, Ltd. *		8,483,425		1,105,023
Giordano International, Ltd.		13,876,365		4,062,814
Lerado Group Holding Company, Ltd.		9,483,682		759,706
Stella International Holdings, Ltd.		2,648,500		4,393,755
TCL Communication Technology Holdings, Ltd. *		2,803,619		318,254
Texwinca Holdings, Ltd.		4,668,907		3,684,583
Travelsky Technology, Ltd., Class H		3,776,132		2,459,830
Weiqiao Textile Company, Ltd.		2,354,106		1,645,553
Yue Yuen Industrial Holdings, Ltd.		1,356,640		3,540,885
				30,280,589
Japan - 6.93%
Aiful Corp. (a)		243,550		726,343
ASICS Corp.		28,000		275,082
Descente, Ltd.		807,860		3,792,155
Kobayashi Pharmaceutical Company, Ltd.		63,500		2,850,034
Meitec Corp.		78,111		1,544,422
Nichii Gakkan Company, Ltd.		58,166		672,905
Sohgo Security Services Company, Ltd.		56,173		700,560
Takuma Company, Ltd.		958,000		2,548,628
USS Company, Ltd.		51,080		3,200,894
				16,311,023
Netherlands - 10.42%
Aalberts Industries NV		240,220		2,952,635
Draka Holding NV *		262,838		4,723,417
Imtech NV		132,073		3,204,803
OPG Groep NV		189,478		2,997,665
SBM Offshore NV		130,024		2,704,306
TKH Group NV		201,289		3,149,352
USG People NV *		296,014		4,806,511
				24,538,689
Norway - 1.48%
Tomra Systems ASA		758,890		3,474,794
Philippines - 0.15%
First Gen Corp. *		799,500		350,181
Singapore - 0.18%
Huan Hsin Holdings, Ltd. *		2,502,298		434,140
South Korea - 8.78%
Binggrae Company, Ltd.		58,460		1,965,463
Busan Bank		375,820		3,381,483
Daeduck Electronics Company, Ltd.		336,490		1,485,584

The accompanying notes are an integral part of the financial statements.

182

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Cap Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
South Korea (continued)
Daegu Bank		306,480	$	3,567,602
Halla Climate Control Company, Ltd.		332,220		3,176,748
Intops Company, Ltd.		86,071		1,305,171
Sindo Ricoh Company, Ltd.		74,213		3,447,033
Youngone Corp. *		375,880		2,341,538
				20,670,622
Spain - 1.72%
Sol Melia SA		509,782		4,046,024
Sweden - 1.47%
D. Carnegie & Company AB *		739,376		0
Niscayah Group AB		1,871,930		3,449,669
				3,449,669
Switzerland - 4.10%
Panalpina Welttransport Holding AG		49,410		3,927,792
Verwaltungs & Privat Bank AG		33,515		3,629,449
Vontobel Holding AG		60,349		2,101,321
				9,658,562
Taiwan - 6.85%
Acbel Polytech, Inc.		1,670,505		1,030,421
D-Link Corp.		1,621,668		1,245,438
Giant Manufacturing Company, Ltd.		1,547,400		3,929,426
KYE System Corp.		3,198,067		2,893,890
Simplo Technology Company, Ltd.		51,596		232,262
Ta Chong Bank, Ltd. *		19,555,000		2,962,247
Taiwan Fu Hsing Industrial Company, Ltd.		2,164,000		1,076,768
Test-Rite International Company, Ltd.		6,015,299		2,755,911
				16,126,363
Thailand - 4.79%
Bank of Ayudhya PCL, Foreign Shares		7,199,900		3,795,699
Bank of Ayudhya PCL, NVDR		990,900		522,786
Glow Energy PCL		2,438,325		2,204,602
Siam City Bank PCL		3,525,600		2,239,134
Total Access Communication PCL (a)		2,583,260		2,514,034
				11,276,255
United Kingdom - 9.83%
Bodycote PLC		1,079,815		2,959,155
Burberry Group PLC		381,359		2,984,919
Fiberweb PLC		3,126,880		3,407,947
Future PLC		4,299,255		1,452,729
Game Group PLC		1,088,345		2,892,302
Henderson Group PLC		2,761,970		5,752,463
Yule Catto & Company PLC		1,646,994		3,680,052
				23,129,567
United States - 1.74%
Steiner Leisure, Ltd. *		123,205		4,092,870
TOTAL COMMON STOCKS (Cost $246,600,088)			$	236,592,436
SHORT TERM INVESTMENTS - 3.35%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		677,437	$	6,782,026
Paribas Corp.
0.16% due 09/01/2009	$	1,115,000	$	1,115,000
TOTAL SHORT TERM INVESTMENTS (Cost $7,896,180)			$	7,897,026
Total Investments (International Small Cap Fund) (Cost $254,496,268) - 103.86%			$	244,489,462
Other assets and liabilities, net - (3.86)%				(9,092,315	)
TOTAL NET ASSETS - 100.00%			$	235,397,147

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Apparel & Textiles	12.23	%
Banking	8.54	%
Financial Services	7.08	%
Industrial Machinery	5.30	%
Retail Trade	4.59	%

International Small Company Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 104.72%
Australia - 7.28%
Acrux, Ltd. *		23,000	$	25,582
Adelaide Brighton, Ltd.		62,860		144,982
Aditya Birla Minerals, Ltd. *		40,783		36,412
AED Oil, Ltd. *		18,722		10,697
AJ Lucas Group, Ltd.		9,034		32,421
Alchemia, Ltd. *		43,512		16,188
Alesco Corp., Ltd.		12,775		46,174
Alkane Resources, Ltd. *		7,000		2,098
Alliance Resources, Ltd. *		40,937		27,009
Amalgamated Holdings, Ltd.		14,652		69,310
Andean Resources, Ltd. * (a)		26,470		47,400
Ansell, Ltd.		13,809		112,307
APA Group, Ltd		19,000		47,111
APN News & Media, Ltd.		49,661		79,674
Aquila Resources, Ltd. *		11,253		67,063
ARB Corp., Ltd.		7,583		27,268
Atlas Iron, Ltd. *		25,974		35,165
Ausenco, Ltd.		8,359		34,150
Austal, Ltd.		12,569		31,223
Austar United Communications, Ltd. *		71,484		62,825
Austereo Group, Ltd.		17,955		23,197
Australian Agricultural Company, Ltd.		21,026		27,628
Australian Infrastructure Fund		53,659		70,708
Australian Worldwide Exploration, Ltd. *		56,285		122,136
Automotive Holdings Group, Ltd		11,804		19,565
AVJennings, Ltd.		48,073		16,069
Avoca Resources, Ltd. *		27,026		40,067
AWB, Ltd.		42,347		46,339
Babcock & Brown Wind Partners, Ltd		70,305		80,342
Beach Petroleum, Ltd.		104,064		69,440
Becton Property Group *		11,935		1,161

The accompanying notes are an integral part of the financial statements.

183

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Bendigo Mining, Ltd. *		20,172	$	4,001
Biota Holdings, Ltd. *		39,986		68,215
Blackmores, Ltd.		1,531		25,600
Bradken, Ltd.		17,089		90,532
Brickworks, Ltd.		375		4,380
Brockman Resources, Ltd. *		19,435		22,349
Cabcharge Australia, Ltd.		12,784		63,855
Campbell Brothers, Ltd.		5,115		104,077
Cardno, Ltd.		9,180		35,222
Carnarvon Petroleum, Ltd. *		59,353		26,233
CBH Resources, Ltd. *		190,383		16,037
Cellestis, Ltd.		15,855		48,234
Ceramic Fuel Cells, Ltd. *		126,217		19,637
Challenger Financial Services Group, Ltd.		38,919		102,640
Charter Hall Group, Ltd		76,583		34,264
Citadel Resource Group, Ltd. *		142,315		40,909
Clough, Ltd.		62,454		47,808
Coal of Africa, Ltd. *		56,451		88,644
Cockatoo Coal, Ltd. *		54,635		16,608
Coeur d’Alene Mines Corp. *		3,660		55,885
Coffey International, Ltd.		16,002		28,311
Comdek, Ltd. *		9,069		3,783
Compass Resources NL *		15,577		1,975
ConnectEast Group (Placement Shares) *		47,500		13,248
ConnectEast Group		95,000		30,545
Corporate Express Australia, Ltd.		7,291		25,555
Count Financial, Ltd.		16,149		20,184
Crane Group, Ltd.		7,439		65,592
CuDeco, Ltd. *		10,337		41,382
Customers, Ltd. *		27,207		63,221
Deep Yellow, Ltd. *		56,297		13,719
Dominion Mining, Ltd.		6,473		22,037
Eastern Star Gas, Ltd. *		47,736		42,495
Emeco Holdings, Ltd.		86,005		55,729
Emitch, Ltd.		31,275		22,985
Energy Developments, Ltd.		10,667		24,299
Energy World Corp., Ltd. *		186,552		79,514
Entertainment Media & Telecoms Corporation, Ltd. *		26,746		9,715
Envestra, Ltd.		71,715		29,609
Extract Resources, Ltd. *		22,986		196,272
Ferraus, Ltd. *		30,170		14,599
FKP Property Group, Ltd.		180,952		111,527
Fleetwood Corp., Ltd.		6,547		43,158
FlexiGroup, Ltd.		67,000		81,946
Flight Centre, Ltd.		4,324		52,591
Forest Enterprises Australia, Ltd.		29,109		5,902
Futuris Corp., Ltd.		97,206		34,686
Geodynamics, Ltd. *		31,447		25,460
Gindalbie Metals, Ltd. *		44,120		30,849
GrainCorp., Ltd. *		6,067		40,064
Grange Resources Corp., Ltd. *		20,914		6,024
Great Southern Plantations, Ltd. *		47,114		4,778
GUD Holdings, Ltd.		7,452		55,794
Gunns, Ltd.		87,176		88,836
GWA International, Ltd.		27,088		59,501
Hastie Group, Ltd.		29,711		45,295
Healthscope, Ltd. (a)		23,243		91,715
Heron Resources, Ltd. *		9,000		1,671
HFA Holdings, Ltd.		76,943		18,006
Hills Industries, Ltd.		27,322		40,738
Horizon Oil, Ltd. *		97,753		16,321
Housewares International, Ltd.		19,121		21,002
IBA Health, Ltd. *		53,086		39,008
IBT Education, Ltd.		33,146		95,255
iiNET, Ltd.		9,172		16,275
Imdex, Ltd.		41,654		27,071
Independence Group NL		20,247		74,318
Indophil Resources NL *		41,044		23,832
Industrea, Ltd.		131,760		52,536
Infomedia, Ltd.		45,314		16,881
Intrepid Mines, Ltd. *		43,561		11,080
Invocare, Ltd.		12,728		59,912
IOOF Holdings, Ltd.		23,456		89,952
Iress Market Technology, Ltd.		9,510		66,199
Jabiru Metals, Ltd. *		30,000		9,049
JB Hi-Fi, Ltd.		9,740		146,350
Kagara Zinc, Ltd. *		47,616		36,760
Karoon Gas Australia, Ltd. *		18,847		171,301
Kimberley Metals, Ltd. *		16,629		1,940
Kingsgate Consolidated, Ltd. *		12,448		80,438
Linc Energy, Ltd. *		21,505		24,951
Lynas Corp, Ltd. *		71,849		38,883
MacArthur Coal, Ltd.		10,233		74,380
Macmahon Holdings, Ltd.		85,483		42,222
Macquarie Media Group, Ltd.		16,487		19,491
Mantra Resources, Ltd. *		2,000		5,874
Marion Energy, Ltd. *		54,928		8,350
McPherson’s, Ltd.		18,009		32,862
Mermaid Marine Australia, Ltd.		21,903		51,775
Metals X, Ltd. *		128,000		12,429
Minara Resources, Ltd. *		52,139		41,218
Mincor Resources NL		36,432		72,191
Mineral Deposits, Ltd. *		53,900		30,050
Mineral Resources, Ltd.		12,820		57,761
Mirabela Nickel, Ltd. *		21,706		50,862
Molopo Australia, Ltd. *		22,468		22,590
Monadelphous Group, Ltd.		6,905		75,757
Mortgage Choice, Ltd.		19,081		17,622
Mosaic Oil NL *		67,228		6,813
Mount Gibson Iron, Ltd. *		151,507		127,976
Murchison Metals, Ltd. *		35,041		53,148
Nexus Energy, Ltd. *		55,118		18,369
Oakton, Ltd.		9,591		20,696
Pacific Brands, Ltd. *		174,508		164,287
Pan Australian Resources, Ltd. *		273,917		92,801
Pan Pacific Petroleum NL *		67,247		32,169
PaperlinX, Ltd.		65,071		37,905
Peet & Company, Ltd.		31,380		49,214
Perilya, Ltd. *		22,845		7,938
Perpetual Trust of Australia, Ltd.		4,327		150,337
Perseus Mining, Ltd. *		31,837		23,608

The accompanying notes are an integral part of the financial statements.

184

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Australia (continued)
Pharmaxis, Ltd. *		15,951	$	30,566
Photon Group, Ltd.		15,516		22,211
Platinum Australia Ltd *		40,203		30,045
PMP, Ltd.		52,580		33,619
Premier Investments, Ltd.		8,238		49,301
Prime Television, Ltd.		15,587		8,562
Primelife Corp., Ltd. *		66,564		11,243
Programmed Maintenance Services, Ltd.		14,472		46,457
pSivida Corp. *		2,379		6,434
Ramsay Health Care, Ltd.		11,270		99,957
RCR Tomlinson, Ltd. *		22,598		17,536
Realestate.com.au, Ltd. *		2,110		12,989
Reckon, Ltd.		14,138		18,140
Redflex Holdings, Ltd.		4,944		10,153
Resolute Mining, Ltd. *		43,345		23,405
Ridley Corp., Ltd.		27,918		24,978
Riversdale Mining, Ltd. *		16,160		84,295
Roc Oil Company, Ltd. *		81,308		45,729
SAI Global, Ltd.		18,966		53,670
Sally Malay Mining, Ltd.		55,567		116,298
Salmat, Ltd.		11,402		38,040
Sedgman, Ltd.		10,879		14,119
Seek, Ltd.		21,315		96,446
ServCorp, Ltd.		10,693		32,314
Service Stream, Ltd.		5,752		2,186
Seven Network, Ltd. *		11,011		59,114
Sigma Pharmaceuticals, Ltd.		83,451		84,987
Silex Systems, Ltd. *		11,943		72,001
SMS Management & Technology, Ltd.		12,633		46,198
SP Telemedia, Ltd.		63,587		45,390
Specialty Fashion Group, Ltd.		51,331		38,088
Sphere Investments Ltd *		18,205		20,510
Spotless Group, Ltd.		25,238		53,276
St. Barbara, Ltd. *		137,516		27,288
Straits Resources, Ltd. *		61,211		107,966
STW Communications Group, Ltd.		36,346		24,094
Sundance Resources, Ltd. *		155,154		24,208
Super Cheap Auto Group, Ltd.		10,824		46,525
Swick Mining Services, Ltd. *		30,800		16,511
Talent2 International, Ltd. *		6,000		6,042
Tamaya Resources, Ltd. * (a)		219,476		0
Tap Oil, Ltd. *		17,366		16,504
Tassal Group, Ltd.		16,716		23,874
Technology One, Ltd.		32,670		23,192
Ten Network Holdings, Ltd.		36,136		37,838
Terramin Australia, Ltd. *		14,500		8,810
TFS Corp., Ltd.		21,282		21,217
Thakral Holdings Group, Ltd.		87,931		28,910
The Reject Shop, Ltd.		2,608		29,426
Tower Australia Group, Ltd.		27,017		57,040
Tox Free Solutions, Ltd. *		12,213		21,122
Transfield Services, Ltd.		45,114		153,716
Transpacific Industries Group, Ltd.		2,950		3,391
UXC, Ltd.		35,986		26,746
Virgin Blue Holdings, Ltd. *		61,210		20,150
Watpac, Ltd.		10,289		14,478
WDS, Ltd.		23,751		39,420
West Australian Newspapers Holdings, Ltd.		19,708		111,243
Western Areas NL * (a)		14,776		63,101
White Energy Company, Ltd. *		20,704		47,428
Whitehaven Coal, Ltd.		31,502		89,324
WHK Group, Ltd.		26,888		22,707
Wide Bay Australia, Ltd.		3,868		30,154
Windimurra Vanadium, Ltd. *		26,928		0
Wotif.com Holdings, Ltd.		10,660		50,056
				9,090,898
Austria - 1.12%
Agrana Beteiligungs AG		672		65,993
Andritz AG		4,647		211,908
A-TEC Industries AG *		1,566		25,450
Austrian Airlines AG *		13,651		87,282
BWIN Interactive Entertainment AG *		3,315		130,496
BWT AG		1,074		29,573
Constantia Packaging AG		1,455		62,903
EVN AG		2,243		46,549
Flughafen Wien AG		1,118		47,332
Intercell AG *		4,221		151,446
Lenzing AG		163		54,736
Mayr-Melnhof Karton AG		705		67,243
Oesterreichische Post AG		4,024		108,292
Palfinger AG		1,770		42,692
RHI AG *		2,919		77,501
Rosenbauer International AG		481		20,828
S&T System Integration & Technology Distribution AG *		487		8,460
Schoeller-Bleckmann Oilfield Equipment AG		1,107		45,246
Uniqa Versicherungen AG		4,818		94,774
Warimpex Finanz- und Beteiligungs AG *		3,221		13,544
				1,392,248
Belgium - 1.42%
Ackermans & Van Haaren NV		2,257		165,857
Agfa Gevaert NV *		16,167		83,851
Banque Nationale de Belgique		21		79,802
Barco NV *		1,197		58,439
Bekaert SA		1,142		152,160
Compagnie d’Entreprises (CFE)		756		37,703
Compagnie Immobiliere de Belgique SA *		645		19,236
Compagnie Maritime Belge SA		1,734		53,918
Duvel Moortgat SA		382		23,001
Econocom Group SA		1,728		18,286
Elia System Operator SA/NV		2,308		87,506
Euronav NV		2,444		47,768
EVS Broadcast Equipment SA		1,071		68,318
Exmar NV		2,007		30,248
Image Recognition Integrated Systems		78		5,348
International Brachytherapy SA *		5,699		35,386
Ion Beam Applications SA		2,739		29,840
Kinepolis Group NV		391		14,616
Lotus Bakeries SA		34		14,381
Melexis NV		3,310		28,201
Omega Pharma SA		1,655		63,968

The accompanying notes are an integral part of the financial statements.

185

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Belgium (continued)
Roularta Media Group NV *		668	$	14,809
SA D’Ieteren Trading NV		498		152,165
Sapec SA		305		30,175
Sioen Industries NV		1,985		14,039
Sipef SA		1,700		86,581
Telenet Group Holding NV *		4,761		113,394
Tessenderlo Chemie NV		2,408		84,104
Umicore		4,849		131,654
Van De Velde NV		796		33,439
				1,778,193
Bermuda - 0.05%
Frontline, Ltd.		2,650		59,626
Canada - 8.29%
Absolute Software Corp. *		3,900		20,128
Aecon Group, Inc. *		5,399		54,249
AGF Management, Ltd.		8,493		114,430
Alamos Gold, Inc. *		13,660		120,535
Alexco Resource Corp. *		5,500		11,756
Altius Minerals Corp. *		2,400		12,540
Anderson Energy, Ltd. *		20,300		13,907
Angiotech Pharmaceuticals, Inc. *		20,094		34,324
Anvil Mining, Ltd. *		12,049		27,846
Aquiline Resources, Inc. *		8,400		17,034
Astral Media, Inc.		5,081		146,895
Atrium Innovations, Inc. *		3,200		39,169
ATS Automation Tooling Systems, Inc. *		8,723		35,219
Augusta Resource Corp. *		17,500		33,409
Aurizon Mines, Ltd. *		17,846		77,921
Axia NetMedia Corp. *		9,200		12,438
B2Gold Corp. *		14,146		9,045
Baffinland Iron Mines Corp. *		24,800		9,514
Baja Mining Corp. *		16,100		8,383
Ballard Power Systems, Inc. *		9,800		16,919
Bankers Petroleum, Ltd. *		43,086		155,460
Bellus Health, Inc. *		3,500		607
Bioms Medical Corp. *		9,900		2,758
Birch Mountain Resources, Ltd. *		11,200		51
Birchcliff Energy, Ltd. *		10,153		62,138
BNK Petroleum, Inc. *		12,925		8,146
Boralex, Inc., Class A *		3,000		24,965
Breaker Energy, Ltd., Class A *		5,200		21,375
Breakwater Resources, Ltd. *		63,300		13,877
Calfrac Well Services, Ltd.		2,900		32,848
Calvalley Petroleums, Inc., Class A *		9,777		18,755
Canaccord Capital, Inc. *		9,300		76,881
Canada Bread Company, Ltd.		2,740		110,126
Canadian Hydro Developers, Inc. *		13,341		61,907
Canadian Western Bank		6,077		102,694
Canam Group, Inc. *		3,770		23,589
Canfor Corp. *		11,801		58,857
Cangene Corp. *		3,800		15,203
Capstone Mining Corp. *		17,200		43,678
Cardiome Pharma Corp. *		8,400		37,981
Carpathian Gold, Inc. *		20,000		4,933
Cascades, Inc. *		6,669		43,374
Catalyst Paper Corp. *		54,263		14,353
CCL Industries, Inc., Class B		3,327		66,920
CE Franklin, Ltd. *		2,786		15,931
Celestica, Inc. *		20,401		173,495
Celtic Exploration, Ltd. *		3,946		57,023
Chariot Resources, Ltd. *		40,500		15,353
Claude Resources, Inc. *		21,200		12,006
Cogeco Cable, Inc.		1,788		44,310
COM DEV International, Ltd. *		7,500		18,086
Comaplex Minerals Corp. *		5,776		24,059
Connacher Oil and Gas, Ltd. *		47,523		43,410
Constellation Software, Inc.		1,700		54,350
Corby Distilleries, Ltd.		2,222		30,466
Corridor Resources, Inc. *		11,000		25,823
Corus Entertainment, Inc., Class B		9,907		135,472
Cott Corp. *		6,083		39,007
Crew Energy, Inc. *		8,723		49,083
Crew Gold Corp. *		1,862		782
Crystallex International Corp. *		43,800		9,202
Dalsa Corp.		2,800		18,032
Denison Mines Corp. *		22,097		30,277
Descartes Systems Group, Inc. *		4,700		21,037
Detour Gold Corp. *		3,650		34,008
Divestco, Inc. *		2,800		1,304
Dorel Industries, Inc., Class B		2,792		76,868
Dundee Precious Metals, Inc. *		10,200		18,634
DundeeWealth, Inc.		6,076		63,271
Eastern Platinum, Ltd. *		66,523		28,864
Endeavour Silver Corp. *		6,200		13,026
Enghouse Systems, Ltd.		1,100		6,290
Entree Gold, Inc. *		7,500		16,305
Equinox Minerals, Ltd. *		64,145		159,960
Equitable Group, Inc.		1,700		29,504
European Goldfields, Ltd. *		15,219		47,544
Evertz Technologies, Ltd.		3,401		44,860
Exfo Electro Optical Engineering, Inc. *		912		2,741
Fairborne Energy, Ltd. *		8,600		27,966
Flint Energy Services, Ltd. *		3,485		32,852
FNX Mining Company, Inc. *		9,825		82,567
Forsys Metals Corp. * (a)		15,300		55,344
Forzani Group, Ltd., Class A		3,070		44,532
Fraser Papers, Inc. *		4,800		285
Fronteer Development Group, Inc. *		13,680		57,357
Galleon Energy, Inc. *		11,550		54,862
Garda World Security Corp. *		7,700		35,660
Gennum Corp.		4,158		16,902
Gildan Activewear, Inc. *		4,800		98,872
Gluskin Sheff & Associates, Inc.		1,700		26,368
Golden Star Resources, Ltd. *		32,118		85,081
Grande Cache Coal Corp. * (a)		17,700		50,768
Great Basin Gold, Ltd. *		41,400		58,238
Great Canadian Gaming Corp. *		8,850		56,750
Greystar Resources, Ltd. *		4,600		16,177
Guyana Goldfields, Inc. *		7,300		30,007
Hanfeng Evergreen, Inc. *		3,700		18,589
Harry Winston Diamond Corp.		6,172		36,195

The accompanying notes are an integral part of the financial statements.

186

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Heroux-Devtek, Inc. *		3,900	$	16,352
Highpine Oil & Gas, Ltd. *		6,842		41,999
Home Capital Group, Inc.		3,115		109,719
HudBay Minerals, Inc. *		21,392		164,922
Imax Corp. *		1,500		14,099
Industrial Alliance Insurance and Financial Services, Inc.		7,288		196,388
Intermap Technologies Corp., Class A *		7,800		19,237
International Forest Products, Ltd., Class A *		5,150		12,984
International Royalty Corp.		20,400		73,419
Iteration Energy, Ltd. *		28,160		24,437
Ivanhoe Energy, Inc. *		51,200		78,571
Jinshan Gold Mines, Inc. *		34,900		47,500
KAB Distribution, Inc. *		25,500		14,907
Kimber Resources, Inc. *		1,750		959
Kingsway Financial Services, Inc.		8,700		29,166
Kirkland Lake Gold, Inc. *		5,309		46,022
Lake Shore Gold, Corp. * (a)		13,508		36,276
Laurentian Bank of Canada *		2,691		92,818
Le Chateau, Inc.		2,400		24,882
Leon’s Furniture, Ltd. *		6,709		64,348
Linamar Corp.		12,009		139,314
Lundin Mining Corp. *		11,040		37,514
MacDonald Dettwiler & Associates, Ltd. *		4,105		114,366
Mahalo Energy, Ltd. *		12,900		0
Major Drilling Group International		2,389		49,755
Manitoba Telecom Services, Inc.		1,600		47,777
Maple Leaf Foods, Inc. *		8,894		74,662
March Networks Corp. *		4,400		15,836
Martinrea International, Inc. *		6,018		39,469
Maxim Power Corp. *		6,300		14,042
MDS, Inc. *		15,568		93,287
Mega Uranium, Ltd. *		26,600		28,428
Methanex Corp.		12,067		216,043
Migao Corp. *		3,400		19,970
MKS, Inc.		1,550		12,884
Mosaid Technologies, Inc.		2,700		46,243
Mullen Group, Ltd.		798		10,453
NAL Oil & Gas Trust		1,522		15,710
Neo Material Technologies, Inc. *		10,100		29,430
Norbord, Inc. *		13,900		19,172
North American Palladium, Ltd. *		8,050		22,648
Northgate Minerals Corp. *		25,007		55,736
NuVista Energy, Ltd. *		7,179		64,724
Open Text Corp. *		5,860		206,405
Osisko Mining Corp. *		7,697		50,341
Paladin Labs, Inc. *		1,400		21,254
Pan American Silver Corp. *		2,300		45,002
Paramount Resources, Ltd. *		4,500		41,804
Pason Systems, Inc.		6,895		65,817
Pelangio Exploration, Inc. *		14,200		4,151
Petrolifera Petroleum, Ltd. *		7,550		5,724
Platinum Group Metals, Ltd. *		11,200		11,663
Points International, Ltd. *		16,500		4,974
Polymet Mining Corp. *		13,500		23,430
Progress Energy Resources Corp.		17,757		168,203
QLT, Inc. *		8,200		34,905
Quadra Mining, Ltd. *		9,677		99,356
Quebecor, Inc.		4,193		94,527
Quest Capital Corp.		18,000		16,935
Reitman’s Canada, Ltd., Class A		5,776		79,933
Resin Systems, Inc. *		36,820		12,276
Resverlogix Corp. *		5,300		10,844
Richelieu Hardware, Ltd.		2,200		38,383
Rock Energy, Inc. *		373		678
RONA, Inc. *		13,109		168,121
Rubicon Minerals Corp. *		21,100		64,374
Russel Metals, Inc.		6,737		100,740
Samuel Manu-Tech, Inc.		3,200		12,715
Sandvine Corp. *		21,000		21,484
Savanna Energy Services Corp.		9,568		51,565
SEMAFO, Inc. *		31,200		62,699
ShawCor, Ltd., Class A		6,731		155,555
Sherritt International Corp.		23,900		147,144
Shore Gold, Inc. *		400		237
Sierra Wireless, Inc. *		3,750		31,171
Silver Standard Resources, Inc. *		8,391		153,295
Silvercorp Metals, Inc. (a)		15,795		58,145
Softchoice Corp.		2,000		12,167
Stantec, Inc. *		5,068		131,104
Stella-Jones, Inc.		700		14,700
Storm Cat Energy Corp. *		2,400		16
Storm Exploration, Inc. *		3,762		41,752
SXC Health Solutions Corp. *		2,600		106,304
Tanzanian Royalty Exploration Corp. * (a)		10,900		34,649
Taseko Mines, Ltd. *		19,800		47,929
Tembec, Inc. *		7,330		5,691
The Churchill Corp. *		1,700		23,309
Theratechnologies, Inc. *		6,398		13,851
Thompson Creek Metals Company, Inc. *		13,797		158,670
Toromont Industries, Ltd.		6,593		134,600
Torstar Corp., Class B		7,600		44,500
Transcontinental, Inc., Class A		8,965		77,796
Transglobe Energy Corp. *		8,300		25,853
Transition Therapeutics, Inc. *		3,200		16,983
Trican Well Service, Ltd.		15,300		141,715
Trinidad Drilling, Ltd.		16,500		86,664
TriStar Oil & Gas, Ltd. *		14,589		195,897
Turnkey E&P, Inc. *		1,100		30
Uex Corp. *		14,600		14,537
Uni-Select, Inc.		2,200		54,299
Uranium One, Inc. *		55,113		123,340
Ur-Energy, Inc. *		10,200		8,572
Vecima Networks, Inc. *		2,921		17,183
Vector Aerospace Corp. *		2,100		13,140
Verenex Energy, Inc. *		8,500		58,621
Vitran Corp., Inc. *		300		3,475
Wesdome Gold Mines, Ltd.		17,100		29,990
West Energy, Ltd. *		7,625		17,273
West Fraser Timber Company, Ltd.		3,755		87,465
Western Canadian Coal Corp. *		25,500		61,493
Westport Innovations, Inc. *		3,900		39,045

The accompanying notes are an integral part of the financial statements.

187

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Canada (continued)
Wi-LAN, Inc. *		12,200	$	25,520
Winpak, Ltd.		6,500		47,974
Xceed Mortgage Corp. *		1,800		2,910
Xtreme Coil Drilling Corp. *		6,548		26,676
Zarlink Semiconductor, Inc. *		200		126
				10,349,029
Denmark - 1.17%
ALK-Abello A/S		770		54,161
Alm. Brand Skadesforsikring A/S *		1,798		37,138
Ambu A/S		800		14,723
Auriga Industries		2,034		37,643
Bang & Olufsen AS, Series B		4,791		61,449
Bavarian Nordic A/S *		981		45,116
BoConcept Holding A/S *		75		1,547
Bonusbanken A/S *		7,500		1,767
Brodrene Hartmann A/S *		800		11,407
Capinordic A/S *		9,300		4,580
Dalhoff Larsen & Horneman A/S, Series B *		2,500		13,974
Dantherm A/S *		168		877
Det Ostasiatiske Kompagni AS		1,821		62,646
DFDS A/S *		319		20,783
DiBa Bank A/S *		550		12,295
Fionia Bank A/S *		1,250		0
Fluegger A/S, Series B		225		12,805
GN Store Nord A/S *		12,589		67,264
Greentech Energy Systems A/S *		6,004		27,773
Gronlandsbanken *		20		1,544
Harboes Bryggeri A/S		769		20,371
IC Companys A/S		3,450		77,813
Jeudan A/S		395		36,544
Maconomy Corp. *		1,500		1,735
NeuroSearch A/S *		2,032		49,951
Nordjyske Bank A/S *		1,190		29,354
Ostjydsk Bank A/S *		190		17,751
Parken Sport & Entertainment A/S *		216		22,869
PER Aarsleff A/S		518		60,270
Pharmexa A/S *		10,600		1,388
Ringkjoebing Landbobank A/S *		797		97,024
Roskilde Bank A/S *		495		0
Satair A/S		591		16,178
Schouw & Company A/S, Series B		2,568		47,517
SimCorp A/S		551		92,837
Sjaelso Gruppen A/S *		2,935		10,658
Solar Holdings A/S		900		46,833
Spar Nord Bank A/S *		8,152		104,481
Sparbank Vest A/S *		275		7,950
Sydbank AS *		4,119		115,515
Thrane & Thrane A/S		800		22,818
TK Development A/S *		2,524		12,369
TopoTarget A/S *		15,000		7,727
Vestjysk Bank A/S *		3,378		75,808
				1,465,253
Finland - 3.26%
Ahlstrom OYJ		995		12,879
Alma Media Oyj		9,947		98,416
Amer Sports Oyj, A Shares		7,384		78,673
Aspo Oyj		2,534		21,970
Atria PLC		1,229		19,889
BasWare Oyj		299		4,625
Cargotec Corp. Oyj, B Shares		3,438		78,233
Cramo Oyj, Series B		3,712		45,507
Digia PLC		2,622		11,977
Elcoteq SE, A Shares *		353		659
Elektrobit Corp. *		9,773		9,969
Elisa Oyj, Class A		12,181		240,725
Etteplan Oyj		276		1,130
Finnair Oyj *		7,567		44,637
Finnlines Oyj *		4,347		56,770
Fiskars Corp.		6,119		82,722
F-Secure Oyj		10,255		38,292
HK Ruokatalo Oyj, Series A		5,218		64,372
Huhtamaki Oyj		9,309		112,430
Ilkka-Yhtyma Oyj		1,073		11,555
KCI Konecranes Oyj		6,939		196,761
Kemira Oyj (a)		6,037		88,886
Kesko Oyj		7,001		206,288
Lannen Tehtaat Oyj		1,043		20,276
Lassila & Tikanoja Oyj		3,716		86,120
Lemminkainen Oyj		775		29,457
Metso Oyj		5,493		138,700
M-real Oyj, Series B *		22,834		23,041
Nokian Renkaat Oyj (a)		6,213		140,069
Olvi Oyj, Series A		1,234		36,732
Oriola-KD Oyj		22,667		116,278
Orion Oyj, Series A		4,330		74,032
Orion Oyj, Series B		6,759		114,907
Outokumpu Oyj		4,458		94,693
Outotec Oyj		4,469		130,143
Pohjola Bank PLC		10,656		123,380
Ponsse Oyj		2,415		15,751
Poyry Oyj		4,503		76,683
Raisio Oyj		15,131		51,242
Ramirent Oyj		8,097		75,185
Rapala VMC Oyj		617		3,851
Rautaruukki Oyj		3,109		72,833
Ruukki Group Oyj *		42,123		111,160
Sanoma WSOY Oyj (a)		8,267		163,917
Scanfil Oyj		3,082		11,714
Stockmann Oyj Abp, Series A (a)		1,949		52,903
Stockmann Oyj Abp, Series B (a)		2,883		75,019
Talentum Oyj		2,462		6,705
Tecnomen Oyj		15,730		23,029
Teleste Oyj		1,377		7,316
TietoEnator Oyj		7,664		140,395
Uponor Oyj		5,843		98,468
Vacon Oyj		1,338		50,289
Vaisala Oyj, Series A		1,893		69,157
Wartsila Oyg Corp.		2,575		97,744
YIT Oyj		14,717		211,150
				4,069,704

The accompanying notes are an integral part of the financial statements.

188

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
France - 5.04%
Ales Groupe SA		435	$	7,922
Alten SA *		2,039		48,379
Altran Technologies SA *		11,249		40,730
April Group SA		1,609		65,195
Arkema		5,678		185,623
Assystem SA		1,674		16,428
Atos Origin SA *		4,238		199,478
Audika SA		48		1,336
Avanquest Software SA *		1,218		5,031
Bacou Dalloz SA		519		39,107
Beneteau SA		3,926		58,513
Boiron SA		834		31,446
Bonduelle SCA		460		42,369
Bongrain SA *		645		46,161
Bourbon SA		4,224		187,341
Bull SA *		11,140		43,202
Canal Plus SA		6,204		47,064
Carbone Lorraine SA		1,227		38,169
Cegedim SA *		323		28,451
Cegid SA		1,808		42,135
Club Mediterranee SA *		2,192		36,195
Compagnie Plastic Omnium SA		1,369		31,024
Delachaux SA		985		70,468
Electricite de Strasbourg SA *		185		28,153
Esso SAF		269		36,831
Etablissements Maurel et Prom SA		9,645		179,589
Etam Developpement SA *		1,728		36,597
Euler Hermes SA		1,416		95,261
Euro Disney SCA *		3,617		20,493
Exel Industries SA		185		7,266
Faurecia *		2,795		38,542
Financiere Marc de Lacharriere SA (Fimalac)		1,726		90,148
Fleury Michon SA		344		14,492
Gaumont SA		545		30,299
Gemalto NV *		4,134		172,128
GFI Informatique SA		5,737		25,024
GIFI		408		22,232
GL Events SA		1,345		28,454
Groupe Steria SA (a)		2,691		73,940
Guerbet SA		180		26,749
Guyenne & Gascogne SA		699		68,058
Havas SA		36,780		112,500
Infogrames Entertainment SA *		1,705		14,397
Ingenico SA		3,004		73,745
Ipsos SA		2,092		58,329
Kaufman & Broad SA *		1,176		26,813
Korian		1,927		52,378
Laurent-Perrier SA		527		36,687
Lisi SA		728		39,874
LVL Medical Groupe SA *		1,484		30,213
M6-Metropole Television		4,852		110,311
Maisons France Confort SA		709		25,327
Manitou BF SA *		1,754		30,418
Manutan SA		978		54,700
Marseill Tunnel Prado-Carena		219		8,107
Montupet SA *		553		3,323
Naturex		382		16,932
Neopost SA		2,508		207,028
Nexans SA		2,634		193,139
Nexity SA		2,770		104,684
Norbert Dentressangle SA		882		52,500
Orco Property Group SA *		1,119		14,056
Orpea SA *		2,078		101,487
Parrot SA *		453		5,587
Penauille Polyservices SA		7,713		31,777
Pierre & Vacances SA		562		42,724
Rallye SA		1,670		54,470
Remy Cointreau SA		2,399		96,003
Rexel SA *		8,113		104,171
Rhodia SA *		10,589		128,716
Robertet SA		258		29,611
Rubis SA		885		73,189
Saft Groupe SA		1,676		74,302
Samse SA		317		25,430
SEB SA		2,615		130,583
Sechilienne-Sidec SA		1,925		76,086
Silicon-On-Insulator Technologies SA *		8,025		73,671
Societe BIC SA		2,094		128,771
Societe des Bains de Mer & du Cercle des Etrangers a Monaco SA		930		63,875
Societe Industrielle D’Aviations Latecoere SA *		350		2,907
Somfy SA		460		87,753
Sopra Group SA		529		26,940
Spir Communication SA *		493		12,266
SR Teleperformance SA		5,607		193,076
Stallergenes SA		813		61,190
Stef-TFE Group		1,506		85,912
Sucriere de Pithiviers-Le-Vieil SA		59		52,867
Synergie SA		1,224		27,377
Tessi SA		206		13,842
Theolia SA *		2,633		19,244
Toupargel-Agrigel SA		936		19,740
Trigano SA		2,853		48,989
UbiSoft Entertainment SA *		7,630		135,983
Union Financiere de France Banque SA		577		19,527
Valeo SA *		8,209		209,866
Viel & Compagnie SA		6,221		28,112
Vilmorin & Compagnie SA		383		38,469
Virbac SA		457		41,328
VM Materiaux SA		579		36,513
Vranken-Pommery Monopole Group SA		716		32,344
Wendel		2,640		125,075
Zodiac SA		4,062		154,419
				6,285,676
Germany - 5.72%
Aareal Bank AG *		2,669		54,776
Adlink Internet Media AG *		2,151		12,293
Aixtron AG		8,637		169,635
Amadeus Fire AG		724		13,564
Augusta Technologie AG		1,041		12,793
Axel Springer AG		858		75,390
Baader Wertpapierhandelsbank AG		10,243		42,340

The accompanying notes are an integral part of the financial statements.

189

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
Balda AG *		3,189	$	5,404
Bauer AG		995		36,483
Beate Uhse AG *		8,223		8,123
Bechtle AG		1,590		42,761
Bertrandt AG		519		12,572
Bilfinger Berger AG		3,202		198,170
Biotest AG		323		21,013
Boewe Systec AG *		640		4,628
Carl Zeiss Meditec AG		3,844		52,804
Cenit AG *		2,140		13,471
Centrotec Sustainable AG *		2,162		25,033
Cewe Color Holding AG		1,320		46,530
Comdirect Bank AG		3,822		33,618
Conergy AG *		21,120		24,168
Constantin Medien AG *		9,191		24,261
CropEnergies AG *		4,847		19,533
CTS Eventim AG		1,453		62,256
Curanum AG		4,385		18,788
D Logistics AG		4,397		7,173
DAB Bank AG		4,358		22,127
Data Modul AG		578		6,344
Demag Cranes AG (a)		2,393		72,209
Deutsche Wohnen AG *		2,617		46,361
Deutz AG *		14,008		69,872
Douglas Holding AG (a)		3,280		132,853
Drillisch AG *		6,749		35,826
Duerr AG		839		14,680
DVB Bank AG		110		4,100
Elexis AG		1,550		18,888
ElringKlinger AG		2,489		44,843
Evotec AG * (a)		25,197		57,115
Fielmann AG		946		61,100
Freenet AG *		6,763		90,641
Fuchs Petrolub AG		690		43,043
GEA Group AG		4,319		76,565
Gerresheimer AG		3,315		93,480
Gerry Weber International AG		1,545		43,304
Gesco AG		414		22,591
GFK AG		1,781		54,417
GFT Technologies AG		6,130		19,327
Gildemeister AG		4,158		52,640
GPC Biotech AG * (a)		5,604		10,340
Grenkeleasing AG		1,594		57,830
Hamburger Hafen und Logistik AG		1,415		59,257
Hawesko Holding AG		1,124		30,587
Heidelberger Druckmaschinen AG *		8,334		72,677
IDS Scheer AG		3,889		83,568
Indus Holding AG		1,427		23,422
Integralis AG *		30		289
Interseroh AG		294		18,320
Intershop Communications AG *		2,654		6,535
IVG Immobilien AG *		9,797		73,510
IWKA AG *		2,786		45,998
Jenoptik AG *		5,019		24,274
KIZOO AG *		1,380		11,913
Kloeckner & Company SE *		5,255		140,673
Kontron AG		6,351		73,633
Krones AG (a)		1,517		71,597
KSB AG		73		40,946
KWS Saat AG		290		48,627
Lanxess AG		10,005		303,768
Leoni AG		3,001		63,539
Loewe AG		1,145		16,374
Manz Automation AG *		222		14,822
MasterFlex AG *		207		1,234
Mediclin AG		8,179		36,935
Medigene AG *		3,374		24,107
Medion AG		3,090		35,405
MLP AG (a)		4,661		52,453
Mologen AG *		1,346		13,477
Morphosys AG *		2,360		53,053
MTU Aero Engines Holding AG		3,703		156,555
MVV Energie AG		1,391		62,592
Nemetschek AG *		1,050		21,022
Norddeutsche Affinerie AG		3,925		149,733
Nordex AG *		3,399		62,330
P&I Personal & Informatik AG		20		510
Pfeiffer Vacuum Technology AG		1,741		130,116
Pfleiderer AG *		3,609		32,125
Plambeck Neue Energien AG *		5,505		18,582
Praktiker Bau- und Heimwerkermaerkte AG		5,569		71,818
Premiere AG *		41,539		198,590
PVA TePla AG *		1,400		8,210
QSC AG *		22,823		52,742
R. Stahl AG		574		13,129
Rational AG		385		50,989
REpower Systems AG *		129		19,205
Rheinmetall AG		4,984		243,304
Rhoen-Klinikum AG		8,581		192,962
Roth & Rau AG *		692		22,441
Sartorius AG		997		23,320
Schlott Gruppe AG		185		1,327
SGL Carbon AG * (a)		4,960		183,367
SHB Stuttgarter Finanz & Beteiligungs AG		951		25,764
Singulus Technologies AG *		4,178		13,170
Sixt AG		755		20,408
Software AG		1,731		132,603
Solar Millennium AG *		2,631		70,597
Solarworld AG (a)		5,654		120,326
Solon AG Fuer Solartechnik AG * (a)		1,340		18,461
Stada Arzneimittel AG		7,066		159,577
Stratec Biomedical Systems AG		1,403		36,837
Symrise AG		10,780		178,608
Takkt AG		2,729		34,875
Technotrans AG *		258		2,219
Tognum AG		10,881		166,089
TUI AG * (a)		17,170		149,787
United Internet AG *		9,939		140,833
Versatel AG *		2,384		21,717
Vossloh AG		996		117,584
Wacker Construction Equipment AG		1,409		17,223
Washtec AG *		1,640		17,356

The accompanying notes are an integral part of the financial statements.

190

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Germany (continued)
Wincor Nixdorf AG		3,979	$	225,664
Wire Card AG		8,598		90,492
Wuerttembergische Lebensversicherung AG		1,339		32,844
				7,137,072
Greece - 1.66%
Agricultural Bank of Greece SA *		21,674		50,300
Alapis Holding Industrial & Commercial SA		61,030		52,855
Anek Lines SA *		24,909		31,600
Athens Stock Exchange SA		6,411		77,450
Athens Water Supply and Sewage CompanySA		2,918		28,089
Bank of Attica SA *		5,492		21,024
Bank of Greece SA		2,122		134,179
Commercial Bank of Greece SA *		8,531		73,900
Diagnostic & Therapeutic Center of AthensHygeia SA		14,012		42,715
Duty Free Shops SA		2,936		29,137
Euromedica SA *		1,362		11,581
Forthnet SA *		14,320		34,597
Fourlis SA		4,391		64,778
Frigoglass SA		2,954		31,927
GEK Group of Companies SA		5,882		52,015
Geniki Bank SA *		27,500		35,696
Greek Postal Savings Bank SA *		7,491		56,206
Halcor SA *		14,007		28,133
Hellenic Petroleum SA		8,233		85,525
Hellenic Technodomiki Tev SA		14,867		128,282
Heracles General Cement SA *		5,225		48,253
Iaso SA		5,049		30,038
Intracom Holdings SA *		28,550		61,698
J&P-Avax SA		7,584		37,239
Lambrakis Press SA *		2,615		7,029
Lavipharm SA *		12,350		25,256
Marfin Financial Group SA Holdings *		46,194		179,468
Maritime Company of Lesvos SA *		26,037		0
Metka SA		2,434		30,906
Michaniki SA		5,586		14,808
Motodynamic SA		321		915
Motor Oil Hellas Corinth Refineries SA		5,091		71,065
Mytilineos Holdings SA		8,401		70,533
Piraeus Port Authority SA		1,280		28,959
Sidenor Steel Products Manufacturing Company SA *		4,142		28,630
Singularlogic SA *		8,145		36,216
Teletypos SA Mega Channel		4,590		34,993
Terna Energy SA		4,982		39,139
Thessaloniki Port Authority SA		488		10,774
Titan Cement Company SA		6,632		192,480
Viohalco SA		8,595		53,239
				2,071,627
Hong Kong - 2.20%
AAC Acoustic Technology Holdings, Inc.		54,000		44,770
Alco Holdings, Ltd.		54,000		17,284
Allied Group, Ltd.		20,000		42,582
Allied Properties HK, Ltd. *		436,000		57,358
Asia Financial Holdings, Ltd.		66,000		21,486
Asia Satellite Telecom Holdings Company, Ltd.		26,220		41,267
Associated International Hotels, Ltd. *		26,000		53,668
C Y Foundation Group, Ltd. *		605,000		7,817
Cafe de Coral Holdings, Ltd.		22,000		46,907
Champion Technology Holdings, Ltd.		327,597		11,646
Chen Hsong Holdings, Ltd.		40,000		12,656
Chevalier International Holdings, Ltd.		16,000		12,393
China Metal International Holdings, Inc.		108,000		22,568
China Sci-Tech Holdings, Ltd. *		263,040		9,174
China Seven Star Shopping, Ltd. *		850,000		8,770
China Solar Energy Holdings, Ltd. *		810,000		11,492
China Zenith Chemical Group, Ltd. *		50,000		1,263
Chong Hing Bank, Ltd.		13,000		23,092
Chow Sang Sang Holdings, Ltd.		30,000		24,979
Chuang’s Consortium International, Ltd.		156,000		11,490
Clear Media, Ltd. *		37,000		16,678
Coastal Greenland, Ltd. *		128,000		9,737
COL Capital, Ltd. *		28,000		4,490
Cross-Harbour Holdings, Ltd.		32,000		26,862
Dah Sing Financial Group		9,600		51,898
Daphne International Holdings, Ltd.		83,317		53,798
Dickson Concepts International, Ltd.		37,000		18,168
EganaGoldpfeil Holdings, Ltd. *		131,750		0
Emperor Capital Group, Ltd. *		33,600		1,738
eSun Holdings, Ltd. *		113,000		16,079
Far East Consortium International, Ltd.		105,750		25,354
First Natural Foods Holdings, Ltd. *		375,000		0
First Sign International Holdings, Ltd.		58,000		28,747
Fubon Bank, Ltd.		46,000		18,788
Galaxy Entertainment Group, Ltd. *		138,000		40,882
Genesis Energy Holdings, Ltd. *		495,000		15,135
Get Nice Holdings, Ltd.		246,000		18,197
Giordano International, Ltd.		199,708		58,472
Glorious Sun Enterprises, Ltd.		88,000		25,314
Golden Resorts Group, Ltd.		500,000		19,666
Great Eagle Holdings, Ltd,		24,000		51,755
Hang Fung Gold Technology, Ltd. *		310,000		0
Harbour Centre Development, Ltd.		37,500		29,018
Heng Tai Consumables Group, Ltd. *		105,000		5,700
Hi Sun Technology China, Ltd. *		237,000		54,204
HKR International, Ltd. *		44,000		17,352
Hongkong & Shanghai Hotels, Ltd.		24,000		27,059
Hung Hing Printing Group, Ltd.		76,216		19,459
Hutchison Harbour Ring, Ltd.		310,000		23,169
i-Cable Communications, Ltd. *		179,000		21,479
Imagi International Holdings, Ltd. *		175,000		9,707
Integrated Distribution Services Group, Ltd.		23,000		34,150
International Luk Fook Holdings, Ltd.		38,000		17,534
ITC Corp., Ltd.		23,635		1,372
Jinhui Holdings, Ltd.		42,000		12,513
Johnson Electronic Holdings, Ltd. *		148,500		58,656
K Wah International Holdings, Ltd.		61,227		16,702
Keck Seng Investments, Ltd.		1,000		439
Kowloon Development Company, Ltd.		44,000		45,179
Lai Sun Development Company, Ltd. *		632,000		10,621
Lippo, Ltd.		31,250		11,720

The accompanying notes are an integral part of the financial statements.

191

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hong Kong (continued)
Lung Kee Holdings, Ltd.		46,000	$	20,192
Matsunichi Communication Holdings, Ltd. *		89,000		33,292
Media Chinese International, Ltd.		30,000		4,413
Melco International Development *		99,000		59,101
Midland Holdings, Ltd.		96,000		69,195
Miramar Hotel & Investment Company, Ltd.		8,000		7,925
Natural Beauty Bio-Technology, Ltd.		80,000		13,199
Norstar Founders Group, Ltd. *		168,000		15,824
Pacific Basin Shipping, Ltd.		146,000		96,982
Pacific Century Premium Developments, Ltd. *		111,000		29,782
Paliburg Holdings, Ltd.		71,380		15,250
Peace Mark Holdings, Ltd. *		180,000		0
Pico Far East Holdings, Ltd.		126,000		18,692
Ports Design, Ltd.		20,000		45,878
Public Financial Holdings, Ltd.		56,000		28,935
PYI Corp., Ltd. *		801		32
Regal Hotels International Holdings, Ltd.		83,200		26,074
REXLot Holdings, Ltd. *		650,000		52,814
Road King Infrastructure, Ltd.		36,000		27,492
Sa Sa International Holdings, Ltd.		62,000		26,170
SEA Holdings, Ltd.		52,000		19,639
Shanghai Zendai Property, Ltd. *		525,000		19,333
Shell Electric Manufacturing Company, Ltd.		36,000		17,418
Shui On Construction & Materials, Ltd.		22,000		24,788
Shun Tak Holdings, Ltd.		66,000		43,831
Singamas Container Holdings, Ltd.		180,000		32,952
Sino-I Technology, Ltd. *		700,000		4,334
Smartone Telecommunications Holdings, Ltd.		35,500		26,904
Stella International Holdings, Ltd.		26,000		43,133
Sun Hung Kai & Company, Ltd.		55,000		47,446
Superb Summit International Timber Company, Ltd. *		3,780,000		22,463
Tack Fat Group International, Ltd. *		200,000		0
TAI Cheung Holdings, Ltd.		49,000		24,377
TAK Sing Alliance Holdings, Ltd.		94,000		21,865
Tan Chong International, Ltd.		63,000		11,543
TCC International Holdings, Ltd. *		53,444		25,154
Techtronic Industries Company, Ltd.		85,500		83,793
Texwinca Holdings, Ltd.		37,961		29,958
Titan Petrochemicals Group, Ltd. *		600,000		15,506
Transport International Holdings, Ltd.		24,800		75,433
Truly International Holdings, Ltd.		20,000		21,119
USI Holding Corp.		38,000		9,183
Vitasoy International Holdings, Ltd.		58,000		33,320
Wai Kee Holdings, Ltd. *		72,000		12,280
Wheelock Properties, Ltd.		70,000		43,401
Wing On Company International, Ltd.		17,000		21,931
Wonson International Holdings, Ltd. *		46,000		3,501
Yip’s Chemical Holdings, Ltd.		32,000		20,154
				2,746,454
Ireland - 1.43%
AER Lingus Group PLC *		25,626		19,500
C&C Group PLC		37,462		139,988
DCC PLC		9,371		227,146
Dragon Oil PLC *		37,057		230,483
Elan Corp. PLC, SADR *		30,100		217,623
FBD Holdings PLC		4,719		49,083
Fyffes PLC		29,278		20,611
Glanbia PLC *		14,700		57,940
Grafton Group PLC *		24,873		128,941
IFG Group PLC		12,100		25,145
Independent News & Media PLC		58,384		23,794
Irish Continental Group PLC *		2,561		44,244
Irish Life & Permanent PLC		30,577		208,623
Kenmare Resources PLC *		114,460		47,767
Kingspan Group PLC		14,645		131,727
McInerney Holdings PLC *		20,779		6,863
Paddy Power PLC		4,237		116,970
United Drug PLC		26,231		88,438
				1,784,886
Italy - 3.88%
Acea SpA		7,361		89,877
Acegas-APS SpA		2,167		14,591
Actelios SpA		3,793		20,786
Aedes SpA *		6,455		1,895
Amplifon SpA *		8,041		28,440
Ansaldo STS SpA		6,306		127,584
Astaldi SpA		5,883		48,811
Autogrill SpA *		11,596		131,106
Azimut Holding SpA		14,547		167,951
Banca Finnat Euramerica SpA		10,675		10,373
Banca Generali SpA		10,115		101,236
Banca IFIS SpA		3,357		39,441
Banca Intermobiliare SpA *		15,988		73,794
Banca Popolare dell’Etruria e del Lazio SpA		8,572		60,232
Banca Popolare di Milano SpA		37,799		285,861
Banca Profilo SpA *		11,108		16,772
Banco di Desio e della Brianza SpA		4,149		27,613
Benetton Group SpA, SADR		200		3,822
Benetton Group SpA		6,078		57,930
Bonifica Ferraresi e Imprese Agricole SpA		261		13,878
Brembo SpA		3,286		25,676
Bulgari SpA		15,798		114,724
Caltagirone Editore SpA		5,211		14,261
Caltagirone SpA		7,345		27,705
Cementir SpA		6,234		31,629
CIR-Compagnie Industriali Riunite SpA *		40,078		82,436
Credito Artigiano SpA		23,255		66,432
Credito Bergamasco SpA		831		32,564
Credito Emiliano SpA *		9,807		60,875
Danieli & Company SpA		1,785		37,728
Davide Campari Milano SpA		12,758		108,311
De Longhi SpA		22,152		69,918
DiaSorin SpA		2,212		69,609
Digital Multimedia Technologies SpA *		1,056		13,615
EEMS Italia SpA *		5,583		9,015
ERG SpA		5,330		76,132
Esprinet SpA		4,770		49,906
Eurotech SpA *		3,019		13,466
Fastweb SpA *		1,771		46,934
Fiera Milano SpA		2,228		15,850
Gemina SpA *		51,524		39,928

The accompanying notes are an integral part of the financial statements.

192

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Italy (continued)
Geox SpA		7,878	$	69,182
Gewiss SpA		9,305		37,981
GreenergyCapital SpA *		175		136
Gruppo Beghelli SpA		13,844		14,991
Gruppo Coin SpA *		12,232		59,427
Gruppo Editoriale L’Espresso SpA *		19,434		42,104
Hera SpA		55,937		138,324
Immsi SpA *		45,199		53,864
Impregilo SpA		32,104		130,846
Indesit Company SpA *		4,379		30,044
Industria Macchine Automatiche SpA		1,088		19,661
Interpump SpA *		7,154		37,053
Iride SpA		27,130		51,413
Italcementi SpA		1,849		27,790
Italmobiliare SpA *		787		36,124
Juventus Football Club SpA *		8,911		13,239
KME Group SpA		17,570		12,753
Marr SpA		4,841		42,362
Milano Assicurazioni SpA		25,516		84,188
Mondadori (Arnoldo) Editore SpA *		12,390		53,416
Nice SpA		7,759		31,615
Panariagroup Industrie Ceramiche SpA		3,544		10,910
Permasteelisa SpA *		1,525		29,474
Piccolo Credito Valtellinese SCRL		22,405		235,024
Pirelli & C Real Estate SpA *		5,311		4,649
Pirelli & Company SpA *		298,175		143,203
Premafin Finanziaria SpA *		46,025		64,638
Prysmian SpA		9,399		176,136
Recordati SpA		9,506		64,163
Risanamento SpA *		13,318		10,136
Sabaf SpA		962		20,785
SAES Getters SpA		1,812		18,758
Safilo Group SpA *		22,079		14,059
Save SpA		3,345		24,510
Seat Pagine Gialle SpA *		2,391		623
Snai SpA *		10,789		47,716
Societa’ Cattolica di Assicurazioni SCRL *		5,185		176,364
Societa Iniziative Autostradali e Servizi SpA		6,448		49,272
Socotherm SpA *		2,703		5,522
Sogefi SpA *		7,700		15,903
Sol SpA		6,441		35,206
Sorin SpA *		67,066		108,736
Stefanel SpA *		22,945		12,649
Telecom Italia Media SpA *		321,936		54,579
Tiscali SpA *		63,246		30,488
Tod’s SpA		1,444		90,237
Trevi Finanziaria SpA		2,918		47,738
Vianini Lavori SpA		4,508		31,883
				4,838,581
Japan - 26.34%
Accordia Golf Company, Ltd. *		49		48,556
Achilles Corp.		20,000		33,612
Adeka Corp.		8,891		89,295
Aderans Company, Ltd.		4,600		62,722
Advanex, Inc. *		2,000		1,756
Aeon Delight Company, Ltd.		2,100		30,766
AI Holdings Corp.		4,300		15,270
Aica Kogyo Company, Ltd.		5,400		55,680
Aichi Bank, Ltd.		800		72,991
Aichi Machine Industry Company, Ltd.		7,000		20,347
Aichi Steel Corp.		10,000		42,472
Aichi Tokei Denki Company, Ltd.		6,000		17,534
Aida Engineering, Ltd.		7,500		26,024
Aiphone Company, Ltd.		1,900		33,119
Aisan Industry Company, Ltd.		3,200		25,399
Akebono Brake Industry Company, Ltd.		6,300		49,153
Akita Bank, Ltd.		28,000		112,830
Aloka Company, Ltd.		1,800		17,033
Alpen Company, Ltd.		2,300		38,769
Alpha Corp.		1,000		5,827
Alpha Systems, Inc.		600		13,165
Alpine Electronics, Inc.		4,115		39,367
Alps Electric Company, Ltd.		18,500		111,395
Alps Logistics Company, Ltd.		2,000		19,089
Amano Corp.		5,900		53,104
Ando Corp.		10,000		14,817
Anest Iwata Corp.		6,000		20,754
Anritsu Corp.		10,297		39,662
AOC Holdings, Inc.		3,400		26,272
AOKI Holdings, Inc.		3,200		35,580
Aomori Bank, Ltd.		16,000		65,664
Aoyama Trading Company, Ltd.		6,300		116,896
Arakawa Chemical Industries, Ltd.		1,700		20,879
Arealink Company, Ltd.		70		5,326
Ariake Japan Company, Ltd.		2,100		32,797
Arisawa Manufacturing Company, Ltd.		3,200		25,761
Aronkasei Company, Ltd.		4,000		15,746
Art Corp.		1,300		22,757
As One Corp.		1,500		27,855
Asahi Diamond Industrial Company, Ltd.		7,000		52,276
Asahi Holdings, Inc. *		2,200		37,694
Asahi Organic Chemicals
Industry Company, Ltd.		8,000		21,011
Asahi Tec Corp. *		45,000		19,293
ASATSU-DK, Inc.		2,700		58,300
Asia Securities Printing Company, Ltd.		3,500		25,941
ASKA Pharmaceutical Company, Ltd.		4,000		35,567
ASKUL Corp. *		2,200		43,812
Asunaro Aoki Construction Company, Ltd.		4,000		20,755
Atsugi Company, Ltd.		22,000		30,876
Autobacs Seven Company, Ltd.		3,100		115,988
Avex Group Holdings, Inc. (a)		5,000		45,123
Awa Bank, Ltd.		22,000		131,430
Azel Corp. *		17,000		0
Bando Chemical Industries, Ltd.		9,000		29,095
Bank of Iwate, Ltd.		1,600		93,677
Bank of Nagoya, Ltd.		23,000		104,020
Bank of Okinawa, Ltd.		1,988		78,401
Bank of Saga, Ltd.		20,000		68,803
Bank of the Ryukyus, Ltd. *		3,700		51,153
Best Denki Company, Ltd.		6,500		33,237
Bookoff Corp.		2,100		29,622

The accompanying notes are an integral part of the financial statements.

193

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Bunka Shutter Company, Ltd.		6,000	$	22,877
CAC Corp.		2,100		15,886
Calsonic Kansei Corp.		20,000		49,268
Canon Electronics, Inc.		2,300		39,312
Canon Finetech, Inc.		2,400		29,036
Capcom Company, Ltd.		4,200		82,646
Catena Corp.		4,600		11,861
Cawachi, Ltd.		2,200		47,301
Central Glass Company, Ltd.		18,432		90,369
Century Leasing System, Inc.		5,700		65,409
Chiba Kogyo Bank, Ltd. *		3,500		30,129
Chiyoda Company, Ltd.		3,000		41,986
Chofu Seisakusho Company, Ltd.		2,600		55,402
Chori Company, Ltd.		23,000		26,107
Chubu Shiryo Company, Ltd.		3,000		26,395
Chudenko Corp.		3,100		51,883
Chuetsu Pulp & Paper Company, Ltd.		10,000		24,409
Chugai Mining Company, Ltd. *		34,900		14,966
Chugai Ro Company, Ltd.		8,000		24,394
Chugoku Marine Paints, Ltd.		6,000		37,784
Chukyo Bank, Ltd.		16,000		50,300
Chuo Denki Kogyo Company, Ltd.		2,000		17,406
Chuo Gyorui Company, Ltd.		3,000		5,827
Circle K Sunkus Company, Ltd.		4,400		71,516
CKD Corp.		5,700		32,909
CMK Corp.		4,000		34,542
Coca-Cola Central Japan Company, Ltd.		2,900		39,888
Cocokara fine Holdings, Inc.		1,430		29,372
Colowide Company, Ltd.		4,500		31,929
Columbia Music Entertainment, Inc. * (a)		29,000		12,396
Commuture Corp.		2,000		14,962
Computer Engineering & Consulting, Ltd.		1,500		10,131
Corona Corp.		900		12,497
Cosel Company, Ltd.		3,100		36,350
Creed Corp.		25		0
CSK Corp. (a)		9,100		43,690
Cybozu, Inc.		45		8,918
D.G. Roland Corp.		1,400		19,910
Dai Nippon Toryo Company, Ltd.		12,000		15,291
Dai-Dan Company, Ltd.		5,000		30,113
Daidoh, Ltd.		2,500		18,520
Daiei, Inc. * (a)		5,900		26,072
Daifuku Company, Ltd.		8,500		58,308
Daihen Corp.		10,000		40,933
Daiho Corp.		10,000		9,513
Daiichi Chuo Kisen Kaisha, Ltd. (a)		12,000		32,967
Daiichi Jitsugyo Company, Ltd.		6,000		19,530
Daiki Aluminium Industry Company, Ltd.		5,000		12,065
Daiko Clearing Services Corp.		3,000		16,916
Daikoku Denki Company, Ltd.		1,600		28,977
Daikyo, Inc. (a)		19,144		49,303
Daimei Telecom Engineering Corp.		4,000		39,037
Dainichi Company, Ltd.		2,100		15,296
Dainippon Ink & Chemicals, Inc.		62,000		96,295
Dainippon Screen ManufacturingCompany, Ltd.		19,000		65,035
Daio Paper Corp.		8,000		76,253
Daisan Bank, Ltd.		18,000		45,156
Daiseki Company, Ltd. (a)		2,900		62,514
Daiso Company, Ltd.		8,000		22,911
Daisyo Corp.		1,100		15,142
Daiwa Industries, Ltd.		5,000		26,871
Daiwa Seiko, Inc.		10,000		13,619
Daiwabo Company, Ltd. (a)		13,000		59,634
DCM Japan Holdings Company, Ltd.		9,520		63,909
Denki Kogyo Company, Ltd.		7,000		35,530
Denyo Company, Ltd.		3,100		25,893
Descente, Ltd.		5,000		23,470
Disco Corp.		1,800		106,108
Doshisha Company, Ltd.		1,000		18,416
Doutor Nichires Holdings Company, Ltd.		3,993		60,169
Dowa Mining Company, Ltd.		27,000		150,886
DTS Corp.		2,700		24,668
Duskin Company, Ltd. *		6,000		110,646
Dwango Company, Ltd.		14		24,098
Dydo Drinco, Inc.		1,300		42,047
E-Access, Ltd.		136		100,153
Ebara Corp.		43,000		192,485
EDION Corp. (a)		8,400		71,817
Ehime Bank, Ltd.		15,253		43,827
Eighteenth Bank, Ltd.		19,000		61,642
Eiken Chemical Company, Ltd.		1,600		20,455
Eizo Nanao Corp.		1,600		36,574
Enplas Corp.		1,800		34,588
Espec Corp.		2,400		15,615
Exedy Corp.		3,100		65,555
F&A Aqua Holdings, Inc.		2,900		32,701
Falco Biosystems, Ltd.		1,500		15,409
Fancl Corp.		3,300		46,299
FCC Company, Ltd. *		3,100		47,483
FDK Corp. *		21,000		32,779
Foster Electric Company, Ltd.		2,500		50,643
FP Corp.		1,200		57,006
France Bed Holdings Company, Ltd.		14,000		22,861
Fudo Tetra Corp. *		13,700		11,885
Fuji Company, Ltd.		2,100		41,094
Fuji Corp., Ltd.		5,000		18,856
Fuji Electric Holdings Company, Ltd.		60,000		114,059
Fuji Kosan Company, Ltd. *		11,000		10,344
Fuji Kyuko Company, Ltd.		8,000		36,135
Fuji Oil Company, Ltd.		6,000		84,076
Fuji Seal International, Inc. *		100		2,117
Fuji Software ABC, Inc.		2,800		52,833
Fujibo Holdings, Inc.		15,000		24,684
Fujicco Company, Ltd.		3,000		34,923
Fujikura Kasei Company, Ltd.		3,400		18,765
Fujita Kanko, Inc.		8,000		34,504
Fujitec Company, Ltd.		8,000		46,217
Fujitsu Frontech, Ltd.		2,000		19,600
Fujitsu General, Ltd.		7,000		23,578
Fujiya Company, Ltd. *		16,000		21,611
Fukui Bank, Ltd.		22,188		74,366

The accompanying notes are an integral part of the financial statements.

194

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Fukushima Bank, Ltd.		23,000	$	15,500
Fukuyama Transporting Company, Ltd.		15,000		81,658
Fumakilla, Ltd.		3,000		16,214
Funai Consulting Company, Ltd.		3,100		16,542
Furukawa Battery Company, Ltd. *		1,231		11,856
Furukawa Company, Ltd.		26,000		37,503
Fuso Pharmaceutical Industries, Ltd.		8,000		25,752
Futaba Corp.		3,557		61,020
Futaba Industrial Company, Ltd.		5,600		23,326
Fuyo General Lease Company, Ltd.		1,700		37,827
Gakken Company, Ltd.		9,000		20,297
Gecoss Corp.		4,000		18,429
Geo Corp.		43		44,403
Gigas K’s Denki Corp.		4,100		125,240
GMO Internet, Inc.		5,300		23,168
Godo Steel, Ltd.		12,000		29,280
Goldcrest Company, Ltd.		2,130		62,035
Goodwill Group, Inc. *		327		342
Green Hospital Supply, Inc.		21		14,334
GSI Creos Corp. *		11,000		13,346
Gulliver International Company, Ltd.		480		33,476
Gun-Ei Chemical Industry Company, Ltd.		6,000		14,824
Gunze, Ltd.		17,000		77,052
H20 Retailing Corp.		17,000		106,632
Hakuto Company, Ltd.		1,500		15,100
Hakuyosha Company, Ltd.		5,000		13,668
Hanwa Company, Ltd.		20,000		78,519
Harashin Narus Holdings Company, Ltd.		2,000		22,313
Haruyama Trading Company, Ltd.		2,700		13,246
Haseko Corp.		113,500		127,085
Hayashikane Sangyo Company, Ltd. *		14,000		22,022
Hazama Corp.		10,600		12,344
Heiwa Corp.		3,500		39,145
Heiwa Real Estate Company, Ltd.		14,500		50,390
Heiwado Company, Ltd.		3,200		46,818
Hibiya Engineering, Ltd.		3,500		31,441
Higashi-Nippon Bank, Ltd.		17,000		39,396
Hikari Tsushin, Inc.		3,700		79,576
HIS Company, Ltd.		2,100		44,616
Hitachi Cable, Ltd. (a)		17,000		56,440
Hitachi Information Systems, Ltd.		2,300		71,012
Hitachi Koki Company, Ltd.		5,700		60,094
Hitachi Kokusai Electric, Inc.		5,000		35,947
Hitachi Medical Corp.		2,000		19,292
Hitachi Plant Technologies, Ltd.		7,000		45,559
Hitachi Tool Engineering, Ltd.		2,500		22,718
Hitachi Zosen Corp. * (a)		76,500		101,440
Hogy Medical Company, Ltd.		1,200		67,331
Hokkan Holdings, Ltd.		7,000		18,362
Hokuetsu Bank, Ltd.		22,000		44,521
Hokuetsu Paper Mills, Ltd.		12,000		65,098
Hokuriku Electric Industry Company, Ltd.		7,000		13,875
Hokuto Corp.		1,900		44,635
Horiba, Ltd.		3,192		72,116
Hosiden Corp.		5,700		83,620
Howa Machinery, Ltd.		20,000		13,477
I Metal Technology Company, Ltd.		4,000		6,532
IBJ Leasing Company, Ltd.		2,200		31,487
Ichikoh Industries, Ltd.		6,000		10,792
Ichiyoshi Securities Company, Ltd.		4,500		31,674
ICOM, Inc.		1,000		23,635
IDEC Corp.		2,900		24,518
Iino Kaiun Kaisha, Ltd.		8,100		41,996
Imperial Hotel, Ltd.		2,700		54,297
Inaba Denki Sangyo Company, Ltd.		1,500		34,504
Inaba Seisakusho Company, Ltd.		1,900		19,640
Inageya Company, Ltd.		5,000		50,404
Ines Corp.		3,700		32,718
Inui Steamship Company, Ltd.		2,300		16,196
Invoice, Inc.		1,133		20,954
Ise Chemical Corp.		3,000		21,286
Iseki & Company, Ltd. *		17,000		77,398
Ishihara Sangyo Kaisha, Ltd. *		34,000		36,139
Ishii Hyoki Company, Ltd.		1,000		15,151
Itochu Enex Company, Ltd.		6,800		41,687
Itochu-Shokuhin Company, Ltd.		600		20,279
Itoham Foods, Inc.		14,000		48,955
Iwasaki Electric Company, Ltd.		6,000		13,808
Iwatani International Corp.		17,000		50,244
Izumiya Company, Ltd.		7,773		47,586
J. Bridge Corp. *		7,000		2,250
Jalux, Inc.		1,500		21,937
Jamco Corp.		3,000		16,524
Japan Airport Terminal Company, Ltd.		7,000		81,119
Japan Aviation Electronics Industry, Ltd.		6,000		38,262
Japan Cash Machine Company, Ltd.		1,800		17,340
Japan Digital Laboratory Company, Ltd.		2,400		33,296
Japan Pulp & Paper Company, Ltd.		10,000		37,443
Japan Radio Company, Ltd.		13,000		32,520
Japan Servo Company, Ltd.		4,000		21,776
Japan Transcity Corp., Ltd.		8,000		26,944
Japan Vilene Company, Ltd.		3,000		18,567
Japan Wool Textile Company, Ltd.		6,000		46,211
Jastec Company, Ltd.		2,100		11,963
Jeol, Ltd.		8,000		37,314
JFE Shoji Holdings, Inc.		12,000		48,515
JK Holdings Company, Ltd.		3,600		16,176
Joban Kosan Company, Ltd.		8,000		13,136
J-Oil Mills, Inc.		11,000		40,600
Joshin Denki Company, Ltd. (a)		5,000		40,239
Juki Corp.		19,000		25,312
Juroku Bank, Ltd.		34,000		127,095
JVC KENWOOD Holdings, Ltd. *		64,281		35,703
kabu.com Securities Company, Ltd. *		41		51,060
Kabuki-Za Company, Ltd.		1,000		40,839
Kadokawa Holdings, Inc.		1,800		41,293
Kaga Electronics Company, Ltd.		2,700		32,475
Kagawa Bank, Ltd.		7,000		29,719
Kakaku.com, Inc.		18		67,287
Kaken Pharmaceutical Company, Ltd.		7,000		63,859
Kameda Seika Company, Ltd.		1,900		35,739
Kamei Corp.		3,000		18,192

The accompanying notes are an integral part of the financial statements.

195

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Kanaden Corp.		4,000	$	23,927
Kanagawa Chuo Kotsu Company, Ltd.		6,000		34,119
Kanamoto Company, Ltd.		3,000		14,696
Kandenko Company, Ltd.		1,000		6,905
Kanematsu Corp. *		37,000		35,800
Kanematsu Electronics, Ltd.		2,300		21,465
Kanto Auto Works, Ltd.		3,400		34,712
Kanto Denka Kogyo Company, Ltd.		5,000		32,705
Kanto Natural Gas Development, Ltd.		4,000		27,146
Kanto Tsukuba Bank, Ltd.		5,800		19,735
Kasumi Company, Ltd.		5,100		24,468
Katakura Industries Company, Ltd.		3,100		35,383
Kato Sangyo Company, Ltd.		2,400		40,404
Kato Works Company, Ltd.		5,000		12,090
Kawai Musical Instruments Manufacturing Company, Ltd.		11,000		15,537
Kawasumi Laboratories, Inc.		2,000		14,643
Kayaba Industry Company, Ltd.		16,000		42,831
Keihin Company, Ltd.		10,000		14,400
Keihin Corp.		4,100		67,714
Keiyo Company, Ltd. (a)		4,600		23,051
Kenedix, Inc. (a)		99		47,258
Kentucky Fried Chicken Japan, Ltd.		1,000		18,100
KEY Coffee, Inc.		2,000		34,326
Kimura Chemical Plants Company, Ltd.		1,900		21,457
Kinki Nippon Tourist Company, Ltd. *		12,000		13,019
Kinki Sharyo Company, Ltd.		3,000		27,181
Kintetsu World Express, Inc.		2,000		45,841
Kisoji Company, Ltd.		1,800		39,690
Kissei Pharmaceutical Company, Ltd.		3,000		71,353
Kitagawa Iron Works Company, Ltd.		12,000		15,059
Kita-Nippon Bank, Ltd.		900		28,068
Kitano Construction Corp.		8,000		20,305
Kitz Corp.		13,000		59,163
Kiyo Holdings, Inc.		71,395		91,143
Koa Corp.		4,200		40,303
Koatsu Gas Kogyo Company, Ltd.		3,000		18,371
Kohnan Shoji Company, Ltd.		3,300		37,329
Koike Sanso Kogyo Company, Ltd.		5,000		15,429
Kokuyo Company, Ltd.		8,973		81,178
Komatsu Wall Industry Company, Ltd.		1,200		15,911
Komori Corp.		6,224		73,543
Konaka Company, Ltd.		4,600		15,914
Kondotec, Inc.		1,600		11,004
Konishi Company, Ltd.		2,600		23,118
Kosaido Company, Ltd. *		2,300		6,261
Kose Corp.		3,100		74,728
Kosei Securities Company, Ltd.		10,000		12,182
Kumagai Gumi Company, Ltd.		18,000		15,759
Kumiai Chemical Industry Company, Ltd.		4,000		16,974
Kura Corp.		10		24,999
Kurabo Industries, Ltd.		18,000		39,644
Kureha Corp.		13,000		78,610
Kuroda Electric Company, Ltd.		3,600		50,435
Kyoden Company, Ltd.		7,000		10,150
Kyodo Printing Company, Ltd.		9,000		31,294
Kyoei Steel, Ltd.		1,700		40,345
Kyoei Tanker Company, Ltd.		5,000		12,978
Kyokuto Kaihatsu Kogyo Company, Ltd.		3,400		13,797
Kyokuyo Company, Ltd.		11,000		22,687
Kyorin Company, Ltd.		5,000		84,895
Kyoritsu Maintenance Company, Ltd.		1,500		24,792
Kyoto Kimono Yuzen Company, Ltd.		1,500		14,941
Kyowa Exeo Corp.		8,000		80,278
Kyowa Leather Cloth Company, Ltd.		200		858
Kyudenko Corp.		5,000		32,864
Life Corp.		3,500		58,928
Lintec Corp.		3,600		75,428
Livedoor Auto Company, Ltd. *		29,500		11,401
Macnica, Inc.		1,200		20,494
Maeda Corp. (a)		13,000		42,890
Maeda Road Construction Company, Ltd.		7,000		61,508
Maezawa Kasei Industries Company, Ltd.		2,000		22,182
Maezawa Kyuso Industries Company, Ltd.		1,600		25,557
Makino Milling Machine Company, Ltd.		11,575		45,580
Mandom Corp.		2,070		60,157
Marubun Corp.		2,200		14,363
Marudai Food Company, Ltd.		13,000		36,785
Maruei Department Store Company, Ltd.		7,000		12,860
Maruetsu, Inc.		9,000		45,856
Maruha Group, Inc.		39,815		60,306
Marusan Securities Company, Ltd.		6,861		47,081
Maruwa Company, Ltd.		800		18,736
Maruyama Manufacturing Company, Inc.		7,000		15,363
Maruzen Showa Unyu Company, Ltd.		7,000		23,122
Maspro Denkoh Corp.		1,900		17,405
Matsuda Sangyo Company, Ltd.		2,020		30,577
Matsuya Company, Ltd. (a)		3,300		31,652
Max Company, Ltd.		5,000		53,950
Maxvalu Tokai Company, Ltd.		2,000		26,916
MEC Company, Ltd.		2,400		17,088
Megachips Corp.		1,900		42,592
Meidensha Corp.		17,086		92,716
Meiji Shipping Company, Ltd.		3,900		20,392
Meitec Corp.		2,700		53,385
Meito Sangyo Company, Ltd.		900		12,532
Meiwa Estate Company, Ltd.		3,300		23,695
Michinoku Bank, Ltd.		16,000		35,489
Mikuni Coca-Cola Bottling Company, Ltd.		4,000		33,714
Mikuni Corp.		1,000		1,505
Milbon Company, Ltd.		1,400		38,025
Mimasu Semiconductor Industry Company, Ltd.		2,100		28,839
Minato Bank, Ltd.		24,000		34,462
Ministop Company, Ltd.		1,900		31,040
Mitani Corp.		2,500		18,127
Mito Securities Company, Ltd.		6,000		16,391
Mitsubishi Kakoki Kaisha, Ltd.		7,000		21,047
Mitsubishi Paper Mills, Ltd.		29,387		41,350
Mitsubishi Pencil Company, Ltd.		2,300		25,937
Mitsubishi Steel Manufacturing Company, Ltd.		20,000		46,134
Mitsuboshi Belting Company, Ltd.		9,000		38,674

The accompanying notes are an integral part of the financial statements.

196

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Mitsui High-Tec, Inc.		3,200	$	41,027
Mitsui Knowledge Industry Company, Ltd.		104		20,124
Mitsui Mining Company, Ltd.		27,500		36,002
Mitsui Sugar Company, Ltd.		10,000		36,750
Mitsui-Soko Company, Ltd.		11,000		42,656
Mitsumura Printing Company, Ltd.		4,000		14,841
Mitsuuroko Company, Ltd.		4,000		27,680
Miura Company, Ltd.		2,900		72,823
Miyazaki Bank, Ltd.		12,000		50,661
Miyoshi Oil & Fat Company, Ltd.		7,000		11,306
Mizuno Corp.		12,000		53,923
Mochida Pharmaceutical Company, Ltd.		7,000		72,274
Modec, Inc.		2,000		38,954
Monex Group, Inc.		113		47,421
Mori Seiki Company, Ltd.		8,800		100,595
Morinaga & Company, Ltd.		25,000		53,719
Morinaga Milk Industry Company, Ltd.		18,000		78,371
Morita Corp.		3,000		16,539
MOS Food Services, Inc.		2,500		42,678
Moshi Moshi Hotline, Inc.		2,150		41,847
Mr. Max Corp.		3,200		17,076
Musashi Seimitsu Industry Company, Ltd. *		700		12,632
Musashino Bank, Ltd.		3,400		120,145
Mutoh Holdings Company, Ltd. *		8,000		13,796
Nabtesco Corp.		9,000		99,585
Nachi-Fujikoshi Corp.		21,000		48,240
Nagano Bank, Ltd.		2,000		4,479
Nagatanien Company, Ltd.		2,000		18,998
Nakamuraya Company, Ltd.		6,000		30,302
Nakayama Steel Works, Ltd.		11,000		23,288
NEC Electronics Corp. *		4,400		43,016
NEC Fielding, Ltd.		1,900		29,626
NEC Leasing, Ltd.		2,000		31,034
NEC Mobiling, Ltd.		1,600		38,260
NEC Networks & System Integration Corp.		1,800		24,685
Net One Systems Company, Ltd.		50		81,887
Netmarks, Inc. *		29		8,878
Neturen Company, Ltd.		4,500		34,740
New Tachikawa Aircraft Company, Ltd.		700		37,608
Nice Corp.		4,000		9,497
Nichia Steel Works, Ltd.		4,000		15,139
Nichias Corp.		12,000		45,953
Nichicon Corp.		6,273		86,334
Nichiha Corp.		3,100		25,145
Nichii Gakkan Company, Ltd.		4,700		54,373
Nichimo Corp.		29,000		312
NICHIREI Corp.		27,000		103,867
Nichireki Company, Ltd.		1,000		4,032
Nidec Copal Corp.		2,600		29,562
Nidec Sankyo Corp.		6,000		34,890
Nidec Tosok Corp.		1,500		11,527
Nifco, Inc.		4,904		87,071
Nihon Chouzai Company, Ltd.		540		13,915
Nihon Dempa Kogyo Company, Ltd.		2,000		44,946
Nihon Eslead Corp.		2,000		27,790
Nihon Inter Electronics Corp.		5,000		16,268
Nihon Kohden Corp.		3,500		57,218
Nihon Matai Company, Ltd.		12,000		14,154
Nihon Nohyaku Company, Ltd.		3,000		24,778
Nihon Parkerizing Company, Ltd.		5,000		61,277
Nihon Unisys, Ltd.		5,900		50,263
Nihon Yamamura Glass Company, Ltd.		13,000		41,112
Nikkiso Company, Ltd.		5,000		39,415
Nikko Company, Ltd.		5,000		14,450
Nippo Corp.		6,000		51,838
Nippon Beet Sugar Manufacturing Company, Ltd.		15,000		42,108
Nippon Carbon Company, Ltd.		13,000		46,602
Nippon Ceramic Company, Ltd.		2,500		33,633
Nippon Chemical Industrial Company, Ltd.		8,000		26,914
Nippon Chemi-Con Corp.		12,271		47,160
Nippon Chemiphar Company, Ltd. (a)		5,000		18,975
Nippon Denko Company, Ltd.		8,000		60,977
Nippon Densetsu Kogyo Company, Ltd.		5,000		49,465
Nippon Denwa Shisetsu Company, Ltd.		6,000		19,617
Nippon Felt Company, Ltd.		2,700		11,837
Nippon Filcon Company, Ltd.		3,100		16,076
Nippon Flour Mills Company, Ltd.		14,000		71,902
Nippon Gas Company, Ltd.		2,400		36,903
Nippon Kanzai Company, Ltd.		800		12,577
Nippon Kasei Chemical Company, Ltd.		9,000		20,718
Nippon Kayaku Company, Ltd.		12,000		104,564
Nippon Koei Company, Ltd.		9,000		30,569
Nippon Konpo Unyu Soko Company, Ltd.		7,000		85,638
Nippon Light Metal Company, Ltd.		48,000		54,841
Nippon Metal Industry Company, Ltd.		16,000		35,358
Nippon Paint Company, Ltd.		21,000		118,658
Nippon Parking Development Company, Ltd.		293		16,255
Nippon Piston Ring Company, Ltd.		13,000		15,905
Nippon Road Company, Ltd.		8,000		20,565
Nippon Seiki Company, Ltd. *		5,000		58,312
Nippon Sharyo, Ltd.		13,000		85,546
Nippon Shinyaku Company, Ltd.		5,000		64,575
Nippon Signal Company, Ltd.		4,600		45,991
Nippon Soda Company, Ltd.		15,000		70,856
Nippon Suisan Kaisha, Ltd.		25,265		75,411
Nippon Synthetic Chemical Industry Company, Ltd.		4,000		26,805
Nippon System Development Company, Ltd.		4,115		43,595
Nippon Thompson Company, Ltd.		7,000		42,795
Nippon Valqua Industries, Ltd.		11,000		24,436
Nippon Yakin Kogyo Company, Ltd.		9,500		54,917
Nippon Yusoki Company, Ltd.		5,000		12,871
Nippon Zeon Company, Ltd.		17,000		83,035
Nipro Corp.		5,000		106,613
Nishimatsu Construction Company, Ltd.		30,000		53,169
Nishimatsuya Chain Company, Ltd.		5,400		53,894
Nissan Shatai Company, Ltd.		8,277		67,814
Nissei Corp.		3,700		28,741
Nissei Plastic Industrial Company, Ltd.		4,000		13,388
Nissen Company, Ltd.		4,600		15,300
Nisshin Fudosan Company, Ltd.		3,000		15,743
Nisshin Oillio Group, Ltd.		11,000		58,495

The accompanying notes are an integral part of the financial statements.

197

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Nissin Corp.		11,000	$	30,286
Nissin Electric Company, Ltd.		6,000		33,299
Nissin Kogyo Company, Ltd.		4,200		54,425
Nissui Pharmaceutical Company, Ltd.		2,600		21,203
Nitta Corp.		3,100		49,206
Nittan Valve Company, Ltd.		4,000		15,420
Nittetsu Mining Company, Ltd.		7,000		34,267
Nitto Boseki Company, Ltd.		25,229		49,859
Nitto Kogyo Corp.		3,600		34,236
Nitto Kohki Company, Ltd.		1,700		33,583
Nitto Seiko Company, Ltd.		4,000		10,740
NOF Corp.		16,000		91,097
Nohmi Bosai, Ltd.		4,000		33,486
Noritake Company, Ltd.		10,000		35,148
Noritsu Koki Company, Ltd.		2,000		16,996
Noritz Corp.		2,100		27,807
NS Solutions Corp.		1,900		33,235
OBIC Business Consultants, Ltd. *		950		45,980
Ogaki Kyoritsu Bank, Ltd. (a)		26,000		104,173
Oiles Corp.		2,727		44,714
Oita Bank, Ltd.		12,000		52,468
Okabe Company, Ltd.		4,800		18,317
Okamoto Industries, Inc.		7,000		26,874
Okamura Corp.		6,000		34,059
Okasan Holdings, Inc.		19,000		93,746
Oki Electric Industry Company, Ltd. *		74,000		77,529
Okinawa Electric Power Company, Inc.		1,500		89,342
OKK Corp.		10,000		9,619
Okuma Holdings, Inc.		15,382		77,585
Okumura Corp.		18,000		74,243
Okura Industrial Company, Ltd.		8,000		22,315
Okuwa Company, Ltd.		3,000		36,838
OMC Card, Inc. * (a)		14,955		27,932
ONO Sokki Company, Ltd.		5,000		21,716
Onoken Company, Ltd.		1,400		14,315
Onward Kashiyama Company, Ltd.		14,000		101,859
Organo Corp.		3,000		23,314
Oriental Yeast Company, Ltd.		4,000		23,537
Osaka Steel Company, Ltd.		1,900		33,972
Osaki Electric Company, Ltd.		3,000		32,814
OSG Corp.		7,700		79,662
Oyo Corp.		2,400		25,026
PanaHome Corp.		8,000		50,586
Paramount Bed Company, Ltd.		2,100		43,715
Parco Company, Ltd.		7,200		71,019
Paris Miki, Inc.		2,800		27,376
Park24 Company, Ltd.		10,100		101,987
Pasona Group, Inc.		31		22,310
Penta-Ocean Construction Company, Ltd.		23,000		31,210
PIA Corp. *		1,300		18,439
Pigeon Corp.		1,631		67,289
Pilot Corp.		22		25,705
Prima Meat Packers, Ltd.		14,000		16,692
PS Mitsubishi Construction Company, Ltd. *		4,200		16,493
Raito Kogyo Company, Ltd.		7,600		19,791
Rasa Industries, Ltd.		10,000		13,333
Resorttrust, Inc.		3,500		43,264
Rhythm Watch Company, Ltd.		14,000		22,293
Ricoh Leasing Company, Ltd.		2,000		43,205
Right On Company, Ltd.		1,800		17,011
Riken Corp.		11,000		37,036
Riken Keiki Company, Ltd.		2,500		18,229
Riken Technos Corp.		8,000		19,624
Riken Vitamin Company, Ltd.		2,000		54,608
Ringer Hut Company, Ltd.		1,700		22,317
Risa Partners, Inc.		34		28,553
Rock Field Company, Ltd.		1,000		12,970
Rohto Pharmaceutical Company, Ltd.		9,000		114,814
Roland Corp.		2,500		29,194
Round One Corp.		4,500		40,808
Royal Holdings Company, Ltd. (a)		3,300		36,605
Ryobi, Ltd.		13,000		38,394
Ryoden Trading Company, Ltd.		4,000		25,725
Ryohin Keikaku Company, Ltd.		1,900		86,616
Ryosan Company, Ltd.		3,329		84,561
Ryoshoku, Ltd.		1,000		23,458
Ryoyo Electro Corp.		3,200		27,971
Sagami Chain Company, Ltd.		3,000		26,886
Saibu Gas Company, Ltd.		27,000		73,441
Saizeriya Company, Ltd.		2,800		46,287
Sakai Chemical Industry Company, Ltd.		9,000		43,501
Sakata Seed Corp.		3,000		45,759
Sala Corp.		4,500		26,471
San-A Company, Ltd. *		1,100		42,553
San-Ai Oil Company, Ltd.		6,000		29,632
Sanden Corp.		11,000		33,057
Sankei Building Company, Ltd.		3,300		25,464
Sanken Electric Company, Ltd.		11,437		41,192
Sanki Engineering Company, Ltd.		5,000		41,638
Sankyo Seiko Company, Ltd.		7,700		19,390
Sankyo-Tateyama Holdings, Inc.		32,000		34,560
Sankyu, Inc.		28,000		125,654
Sanoh Industrial Company, Ltd.		4,600		30,074
Sanrio Company, Ltd.		4,800		42,394
Sanshin Electronics Company, Ltd.		3,600		29,498
Sanwa Shutter Corp.		22,124		81,067
Sanyo Chemical Industries, Ltd.		8,000		49,768
Sanyo Shokai, Ltd.		10,000		33,567
Sanyo Special Steel Company, Ltd.		11,648		47,013
Sapporo Hokuyo Holdings, Inc.		35,200		127,372
Sasebo Heavy Industries Company, Ltd. (a)		13,000		27,389
Sato Corp.		3,000		39,058
Satori Electric Company, Ltd.		2,400		16,756
Sawai Pharmaceutical Co., Ltd.		1,300		75,044
Seibu Electric Industry Company, Ltd.		3,000		14,892
Seikagaku Corp.		2,600		33,187
Seiko Corp.		8,000		21,577
Seiren Company, Ltd.		7,000		45,002
Sekisui Jushi Corp.		4,000		35,361
Sekisui Plastics Company, Ltd.		5,000		19,989
Senko Company, Ltd.		9,000		35,383
Senshu Electric Company, Ltd.		1,500		16,732

The accompanying notes are an integral part of the financial statements.

198

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Senshukai Company, Ltd.		4,500	$	31,575
Shibaura Mechatronics Corp.		5,000		17,964
Shibusawa Warehouse Company, Ltd.		6,000		22,895
Shibuya Kogyo Company, Ltd.		3,300		26,968
Shikibo, Ltd. (a)		11,000		29,447
Shikoku Bank, Ltd.		17,000		63,350
Shikoku Chemicals Corp.		5,000		28,925
Shikoku Coca-Cola Bottling Company, Ltd.		2,900		32,224
Shima Seiki Manufacturing, Ltd.		2,900		67,160
Shimachu Company, Ltd.		5,100		119,794
Shimizu Bank, Ltd.		1,100		43,733
Shin Nippon Air Technologies Company, Ltd.		3,100		22,142
Shindengen Electric Manufacturing Company, Ltd.		7,000		17,100
Shin-Etsu Polymer Company, Ltd.		5,300		37,105
Shinkawa, Ltd.		1,700		29,363
Shin-Keisei Electric Railway Company, Ltd.		4,000		15,285
Shinko Electric Company, Ltd.		14,000		37,003
Shinko Plantech Company, Ltd.		4,800		46,069
Shinko Shoji Company, Ltd.		2,700		23,987
Shin-Kobe Electric Machinery Company, Ltd.		2,000		23,615
Shinmaywa Industries, Ltd.		9,000		37,066
Shinnihon Corp.		8,000		13,935
Shinsho Corp.		7,000		13,265
Shinwa Kaiun Kaisha, Ltd.		11,000		30,338
Shizuki Electric Company, Inc.		5,000		26,047
Shizuoka Gas Company, Ltd.		6,000		44,832
SHO-BOND Holdings Company, Ltd.		1,700		32,863
Shobunsha Publications, Inc.		2,400		16,531
Shochiku Company, Ltd. (a)		8,000		69,276
Shoko Company, Ltd. (a)		11,000		13,193
Showa Aircraft Industry Company, Ltd.		3,000		23,400
Showa Corp.		4,900		31,233
Showa Sangyo Company, Ltd.		11,000		35,143
Sinanen Company, Ltd.		5,000		25,755
Sintokogio, Ltd.		4,400		36,355
SKY Perfect JSAT Corp.		223		90,014
SMK Corp.		6,000		37,916
Snow Brand Milk Products Company, Ltd.		19,500		70,289
Soda Nikka Company, Ltd.		4,000		13,238
Sogo Medical Company, Ltd.		900		21,483
Sohgo Security Services Company, Ltd.		5,500		68,593
So-net M3, Inc. *		12		38,892
Sorun Corp.		2,900		16,000
Space Company, Ltd.		2,700		18,408
SSP Company, Ltd.		6,000		32,054
ST Chemical Company, Ltd.		2,000		23,349
St. Marc Holdings Company, Ltd.		1,100		35,339
Star Micronics Company, Ltd.		3,700		38,599
Starzen Company, Ltd.		9,000		21,941
Stella Chemifa Corp.		1,100		51,538
Sugi Pharmacy Company, Ltd.		3,200		73,274
Sumida Corp.		2,600		18,575
Sumiseki Holdings, Inc. *		9,800		10,882
Sumisho Computer Systems Corp.		2,100		34,878
Sumitomo Bakelite Company, Ltd.		21,000		106,514
Sumitomo Densetsu Company, Ltd.		4,300		23,532
Sumitomo Light Metal Industries, Ltd.		35,000		37,038
Sumitomo Mitsui Company, Ltd. *		31,300		33,325
Sumitomo Osaka Cement Company, Ltd.		44,000		93,272
Sumitomo Pipe & Tube Company, Ltd.		4,100		23,537
Sumitomo Precision Products Company, Ltd.		4,000		15,098
Sumitomo Real Estate Sales Company, Ltd.		890		38,143
Sumitomo Seika Chemicals Company, Ltd.		4,000		17,190
Sumitomo Titanium Corp.		2,000		67,248
Sumitomo Warehouse Company, Ltd.		14,952		72,576
SWCC Showa Holdings Company, Ltd.		34,000		39,175
SxL Corp. *		25,000		16,300
SystemPro Company, Ltd.		42		20,642
T. Hasegawa Company, Ltd.		2,600		43,443
Tachibana Eletech Company, Ltd.		1,700		14,259
Tachi-S Company, Ltd.		3,100		28,061
Tadano, Ltd.		18,000		88,020
Taihei Dengyo Kaisha, Ltd.		4,000		47,015
Taiheiyo Kaiun Company, Ltd. *		13,000		13,767
Taiho Kogyo Company, Ltd.		2,900		22,043
Taikisha, Ltd.		3,900		52,667
Taiyo Ink Manufacturing Company, Ltd. *		1,300		33,018
Taiyo Yuden Company, Ltd.		9,000		106,783
Takamatsu Corp.		1,900		34,480
Takano Company, Ltd.		2,000		13,337
Takaoka Electric Manufacturing Company, Ltd.		8,000		28,036
Takara Standard Company, Ltd.		11,000		64,645
Takasago International Corp.		8,000		43,580
Takasago Thermal Engineering Company, Ltd.		7,000		62,228
Takiron Company, Ltd.		7,000		19,551
Takisawa Machine Tool Company, Ltd.		3,000		2,615
Takuma Company, Ltd.		10,000		26,604
Tamura Corp.		7,000		26,608
Tatsuta Electric Wire & Cable Company, Ltd.		8,000		20,644
Teac Corp. *		35,000		18,086
TECMO KOEI HOLDINGS COMPANY, LTD. *		4,400		36,703
Teikoku Electric Manufacturing Company, Ltd.		700		16,061
Teikoku Piston Ring Company, Ltd.		2,700		11,957
Teikoku Tsushin Kogyo Company, Ltd.		6,000		16,462
Tekken Corp. *		14,000		13,837
Telepark Corp.		16		28,120
Tenma Corp.		2,100		26,321
The Hokkoku Bank, Ltd.		33,000		125,940
The Hyakugo Bank, Ltd.		28,000		146,253
The Pack Corp.		1,500		22,330
Tigers Polymer Corp.		2,000		9,026
TKC Corp.		1,800		35,128
TOA Corp.		22,000		26,848
TOA Oil Company, Ltd.		14,000		18,905
Toagosei Company, Ltd.		21,000		68,458
Tobishima Corp. *		48,000		19,064
Tobu Store Company, Ltd.		8,000		25,954
TOC Company, Ltd.		9,300		44,399
Tocalo Company, Ltd.		1,300		22,894
Tochigi Bank, Ltd.		12,000		63,778
Toda Corp.		24,000		96,376

The accompanying notes are an integral part of the financial statements.

199

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Toda Kogyo Corp. (a)		6,000	$	49,205
Todentsu Corp.		6,000		11,535
Toei Company, Ltd.		6,000		33,972
Toenec Corp.		4,000		25,451
Toho Bank, Ltd.		20,000		91,084
Toho Company, Ltd.		6,000		21,577
Toho Titanium Company, Ltd.		3,000		48,403
Toho Zinc Company, Ltd.		14,000		67,893
Tohoku Bank, Ltd.		9,000		14,710
Tohto Suisan Company, Ltd.		5,000		9,398
Tokai Carbon Company, Ltd.		22,000		112,871
Tokai Corp.		4,000		21,167
Tokai Rubber Industries, Ltd.		3,900		47,758
Tokai Tokyo Securities Company, Ltd.		22,966		82,333
Toko, Inc. *		10,000		18,306
Tokushima Bank, Ltd.		7,000		37,008
Tokushu Tokai Holdings Company, Ltd.		11,000		29,544
Tokyo Dome Corp.		17,000		51,855
Tokyo Energy & Systems, Inc.		3,000		25,130
Tokyo Kikai Seisakusho, Ltd.		10,000		19,006
Tokyo Ohka Kogyo Company, Ltd.		4,500		106,047
Tokyo Rakutenchi Company, Ltd.		6,000		24,669
Tokyo Rope Manufacturing Company, Ltd.		12,000		40,371
Tokyo Seimitsu Company, Ltd.		4,100		58,115
Tokyo Style Company, Ltd.		6,000		50,129
Tokyo Tomin Bank, Ltd.		3,100		56,089
Tokyotokeiba Company, Ltd.		18,000		29,045
Tokyu Community Corp.		1,300		28,645
Tokyu Construction Company, Ltd.		12,090		37,063
Tokyu Livable, Inc.		2,200		19,966
Tokyu Recreation Company, Ltd.		4,000		22,970
Toli Corp.		7,000		15,427
Tomato Bank, Ltd.		10,000		24,021
Tomoe Corp.		4,400		12,304
Tomoku Company, Ltd.		11,000		25,526
Tomy Company, Ltd.		6,100		51,766
Topcon Corp.		8,200		41,796
Topre Corp.		5,000		46,718
Topy Industries, Ltd.		17,000		42,465
Tori Holdings Company, Ltd. *		7,300		4,374
Torigoe Company, Ltd.		2,300		18,508
Torii Pharmaceutical Company, Ltd.		1,700		30,926
Torishima Pump Manufacturing Company, Ltd.		2,300		33,983
Toshiba Machine Company, Ltd.		12,000		47,820
Toshiba Plant Systems & Services Corp.		4,000		54,127
TOSHIBA TEC CORP.		13,000		55,667
Tosho Printing Company, Ltd.		3,000		7,573
Totetsu Kogyo Company, Ltd.		4,000		27,759
Tottori Bank, Ltd.		11,000		30,489
Towa Bank, Ltd. *		28,000		19,766
Towa Pharmaceutical Company, Ltd.		1,100		55,421
Toyo Construction Company, Ltd.		33,000		19,841
Toyo Corp.		3,100		31,927
Toyo Electric Manufacturing Company, Ltd.		4,000		35,179
Toyo Engineering Corp.		12,000		42,505
Toyo Ink Manufacturing Company, Ltd.		18,000		63,547
Toyo Kanetsu KK		16,000		32,018
Toyo Kohan Company, Ltd.		5,000		22,018
Toyo Securities Company, Ltd. *		7,000		16,557
Toyo Tanso Company, Ltd.		1,100		61,596
Toyo Tire & Rubber Company, Ltd.		22,000		51,945
Toyobo Company, Ltd.		70,064		133,990
Trusco Nakayama Corp.		2,300		38,425
TS Tech Compay, Ltd. *		4,800		86,969
Tsubakimoto Chain Company, Ltd.		13,000		56,209
Tsuruha Holdings, Inc.		1,600		62,364
Tsurumi Manufacturing Company, Ltd.		3,000		22,014
Tsutsumi Jewelry Company, Ltd.		900		19,784
Ube Material Industries, Ltd.		9,000		23,932
ULVAC, Inc.		3,300		94,632
Unicharm Petcare Corp.		1,600		57,326
Uniden Corp.		7,000		19,290
Unimat Life Corp.		2,100		20,950
Union Tool Company, Ltd.		1,000		30,568
Unitika, Ltd.		42,000		40,621
Utoc Corp.		4,300		13,291
Valor Company, Ltd.		4,700		43,007
Venture Link Company, Ltd. *		9,800		2,002
VITAL KSK HOLDINGS, Inc. *		2,900		16,415
Wacom Company, Ltd. *		38		76,085
Wakachiku Construction Company, Ltd. *		17,000		11,128
Warabeya Nichiyo Company, Ltd.		1,500		18,935
Watabe Wedding Corp.		800		12,250
Watami Company, Ltd.		2,000		41,923
Weathernews, Inc.		800		14,680
Wood One Company, Ltd.		2,000		7,047
Xebio Company, Ltd.		2,400		52,052
Yahagi Construction Company, Ltd.		4,000		28,172
Yaizu Suisankagaku Industry Company, Ltd.		1,700		19,699
Yamagata Bank, Ltd.		22,000		124,042
Yamanashi Chuo Bank, Ltd.		21,255		114,286
Yamatane Corp.		13,000		23,777
Yamazen Corp.		7,500		30,227
Yaoko Company, Ltd.		900		29,208
Yasuda Warehouse Company, Ltd.		2,600		19,513
Yellow Hat, Ltd.		2,000		17,809
Yodogawa Steel Works, Ltd.		13,825		62,053
Yokogawa Bridge Corp.		3,000		24,520
Yokohama Reito Company, Ltd.		4,000		26,105
Yokowo Company, Ltd.		2,800		16,046
Yomeishu Seizo Company, Ltd.		3,000		28,807
Yonekyu Corp.		3,000		29,651
Yorozu Corp.		1,600		18,787
Yoshimoto Kogyo Company, Ltd.		3,700		42,770
Yoshinoya D&C Company, Ltd. (a)		45		55,072
Yuasa Funashoku Company, Ltd.		4,000		10,287
Yuasa Trading Company, Ltd.		24,000		25,956
Yurtec Corp.		5,000		32,513
Yusen Air & Sea Service Company, Ltd. *		2,900		40,147
Yushin Precision Equipment Company, Ltd.		1,400		23,398
Yushiro Chemical Industry Company, Ltd.		1,100		17,614
Zenrin Company, Ltd.		2,900		39,047

The accompanying notes are an integral part of the financial statements.

200

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
Zensho Company, Ltd.		7,500	$	54,546
Zeria Pharmaceutical Company, Ltd.		3,000		32,056
Zuken, Inc.		2,300		19,257
				32,877,073
Netherlands - 2.43%
Aalberts Industries NV		10,885		133,792
Accell Group NV		2,364		113,912
Arcadis NV		4,659		87,174
ASM International NV *		4,290		79,185
BE Semiconductor Industries NV *		9,412		39,152
Beter Bed Holding NV		1,715		31,915
Brunel International NV		2,953		80,663
Crown Van Gelder NV		152		1,591
Crucell NV, ADR *		1,501		32,962
Crucell NV *		5,477		119,958
Draka Holding NV *		2,745		49,330
Exact Holdings NV		1,691		45,262
Fornix Biosciences NV		1,231		15,016
Fugro NV		5,947		321,038
Grontmij NV		1,690		45,380
Imtech NV		5,892		142,972
KAS Bank NV		1,372		25,593
Kendrion NV		951		13,392
Koninklijke BAM Groep NV		14,313		150,756
Koninklijke Boskalis Westinster NV		4,731		149,282
Koninklijke Ten Cate NV		2,968		62,884
Koninklijke Vopak NV		3,019		194,376
Macintosh Retail Group NV		3,082		49,957
Nederlandsche Apparatenfabriek NEDAP NV		441		10,622
Nutreco Holding NV		3,754		169,020
Oce NV		9,198		54,114
OPG Groep NV		4,639		73,392
Ordina NV *		4,821		28,781
Samas NV *		11,681		1,336
SBM Offshore NV		11,013		229,054
Sligro Food Group NV		2,701		76,038
Smit Internationale NV		1,219		88,637
Telegraaf Media Groep NV		2,614		48,656
TKH Group NV		3,140		49,128
Unit 4 Agresso NV *		5,229		98,969
USG People NV *		6,455		104,813
Wavin NV		9,164		19,866
				3,037,968
New Zealand - 0.69%
Air New Zealand, Ltd.		31,746		27,154
Ebos Group, Ltd.		3,083		12,264
Fisher & Paykel Appliances Holdings, Ltd.		50,069		27,443
Fisher & Paykel Healthcare Corp.		47,719		106,376
Freightways, Ltd.		13,083		27,164
Hallenstein Glasson Holdings, Ltd.		11,055		21,195
Infratil, Ltd.		37,345		44,236
Mainfreight, Ltd.		10,156		35,462
New Zealand Exchange, Ltd. *		2,076		10,790
New Zealand Oil & Gas, Ltd. *		40,183		44,280
New Zealand Refining Company, Ltd.		17,271		61,129
Nuplex Industries, Ltd.		21,229		36,303
PGG Wrightson, Ltd.		23,527		11,271
Port of Tauranga, Ltd.		9,578		43,354
Pumpkin Patch, Ltd.		30,500		38,678
Ryman Healthcare, Ltd.		24,206		30,495
Sanford, Ltd.		6,681		22,942
Sky City Entertainment Group, Ltd.		56,475		126,752
Sky Network Television, Ltd.		14,967		45,290
Steel & Tube Holdings, Ltd.		7,400		17,750
Tower, Ltd.		18,732		21,834
Vector, Ltd.		30,611		42,416
				854,578
Norway - 1.80%
Acergy SA		2,757		27,881
Acta Holding ASA *		30,000		13,661
Aker Kvaerner ASA		6,000		59,181
Aktiv Kapital ASA *		3,800		25,965
Austevoll Seafood ASA *		8,143		44,711
Birdstep Technology ASA *		21,000		7,638
Blom ASA *		7,600		19,251
BW Offshore, Ltd. *		63,000		77,474
Camillo Eitzen & Company ASA *		5,800		6,784
Cermaq ASA *		5,800		41,684
Copeinca ASA * (a)		15,800		73,468
Det Norske Oljeselskapb ASA *		67,720		71,368
DOF ASA *		5,500		32,254
EDB Business Partner ASA *		4,000		10,909
Eitzen Chemical ASA *		8,000		3,529
Ekornes ASA		2,900		44,419
Electromagnetic GeoServices ASA *		2,600		1,710
Eltek ASA *		14,600		8,963
Ementor ASA		10,153		52,393
Farstad Shipping ASA		4,400		89,230
Ganger Rolf ASA		2,127		52,406
Kongsberg Automotive ASA *		11,000		13,808
Kongsberg Gruppen ASA		1,400		16,069
Kverneland Gruppen ASA *		1,000		730
Nordic Semiconductor ASA		5,500		23,307
Norse Energy Corp. ASA *		40,000		21,566
Norske Skogindustrier ASA *		18,500		33,804
Norwegian Air Shuttle ASA *		2,792		31,416
Odfjell ASA		6,507		49,017
ODIM ASA		3,100		16,956
Pan Fish ASA *		175,000		124,563
Petroleum Geo-Services ASA *		14,600		116,571
PhotoCure ASA *		1,408		7,955
ProSafe ASA		15,000		72,998
Prosafe Production Public, Ltd. *		8,635		18,171
Q-Free ASA *		10,000		34,941
Scana Industrier ASA		24,396		26,000
Schibsted ASA		7,800		112,499
Sevan Marine ASA *		36,322		49,039
Solstad Offshore ASA		3,000		47,391
Songa Offshore SE *		10,500		38,883
Sparebanken Midt-Norge ASA		10,452		71,834
Storebrand ASA *		23,000		125,239

The accompanying notes are an integral part of the financial statements.

201

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Norway (continued)
Subsea 7, Inc. *		7,600	$	87,479
TGS Nopec Geophysical Company ASA *		8,785		111,573
Tomra Systems ASA		17,056		78,096
Veidekke ASA		8,800		63,070
Wilhelm Wilhelmsen ASA		4,200		90,302
				2,248,156
Portugal - 0.53%
Altri SGPS SA *		9,087		39,924
Banco BPI SA		32,406		97,957
Finibanco Holding SGPS SA *		7,634		16,994
Impresa, SGPS SA *		13,622		26,042
Investimentos Participacoes e Gestao SA *		31,635		29,512
Mota Engil, SGPS SA		9,080		44,479
Novabase SGPS SA *		2,826		18,897
Pararede SGPS SA *		10,834		15,412
Portucel - Empresa Produtora de Pasta e Papel SA		23,084		62,980
PT Multimedia.com, SGPS, SA (a)		17,213		103,051
Semapa-Sociedade de Investimento & Gestao, SGPS SA		5,339		53,243
Sonae Industria, SGPS SA *		4,886		17,389
Sonae, SGPS SA		42,153		52,056
Sonaecom, SGPS SA *		9,179		24,105
Teixeira Duarte-Engenharia & Construcoes SA *		37,298		56,313
				658,354
Singapore - 1.88%
Allgreen Properties, Ltd.		60,000		48,631
Asia Food & Properties, Ltd. *		172,000		42,313
Bonvests Holdings, Ltd.		36,400		23,220
Bukit Sembawang Estates, Ltd.		13,000		37,951
Cerebos Pacific, Ltd.		12,000		26,809
CH Offshore, Ltd.		50,000		19,407
Chartered Semiconductor Manufacturing, Ltd. *		17,640		29,134
China Merchants Holdings Pacific, Ltd.		41,000		18,058
Chip Eng Seng Corp., Ltd.		63,000		18,333
Chuan Hup Holdings, Ltd.		78,000		15,968
ComfortDelGro Corp., Ltd.		169,000		181,782
Cosco Corp. Singapore, Ltd.		62,000		53,692
Creative Technology, Ltd. *		7,050		30,226
CSE Global, Ltd.		54,000		31,289
CWT, Ltd.		31,000		13,429
Delong Holdings, Ltd. *		45,500		27,778
Ezra Holdings, Ltd. *		36,000		40,911
FJ Benjamin Holdings, Ltd.		66,000		11,867
Food Empire Holdings, Ltd.		52,800		11,673
Furama, Ltd. *		12,000		10,489
Goodpack, Ltd.		25,000		16,731
Guocoland, Ltd.		27,300		39,549
Ho Bee Investment, Ltd.		33,000		29,951
Hong Fok Corp., Ltd. *		39,800		18,200
Hong Leong Asia, Ltd.		23,000		25,989
Hotel Plaza, Ltd.		30,000		30,184
Hotel Properties, Ltd.		20,100		28,706
HTL International Holdings, Ltd.		57,000		13,840
Hwa Hong Corp., Ltd.		55,000		16,412
Hyflux, Ltd.		19,000		37,841
Jaya Holdings, Ltd.		57,000		18,323
Jurong Technologies Industrial Corp., Ltd.		83,200		1,443
Keppel Telecommunications & Transportation Company, Ltd.		15,000		14,763
Kim Eng Holdings, Ltd.		17,795		25,820
KS Energy Services, Ltd.		27,000		23,387
Manhattan Resources, Ltd. *		34,000		14,853
MediaRing, Ltd. *		145,000		26,131
Metro Holdings, Ltd.		38,000		17,782
MFS Technology, Ltd.		56,000		7,955
Midas Holdings, Ltd.		58,000		34,175
MobileOne, Ltd.		26,000		30,848
NatSteel, Ltd.		29,000		25,962
Orchard Parade Holdings, Ltd. *		18,000		12,479
Osim International, Ltd. *		44,000		14,279
Parkway Holdings, Ltd.		77,000		106,331
Petra Foods, Ltd.		46,000		23,837
Raffles Education Corp., Ltd.		117,086		43,426
Rotary Engineering, Ltd.		37,000		32,053
SBS Transit, Ltd.		20,500		25,335
SC Global Developments, Ltd. *		26,000		27,570
Sim Lian Group, Ltd.		42,000		14,282
Singapore Land, Ltd.		13,321		47,766
Singapore Post, Ltd.		98,000		63,572
Singapore Reinsurance Corp., Ltd.		72,000		13,341
SMRT Corp., Ltd.		66,000		77,856
Tat Hong Holdings, Ltd.		28,000		20,744
TT International, Ltd. *		190,000		5,934
United Engineers, Ltd.		19,000		22,373
United Industrial Corp, Ltd.		63,000		80,389
UOB-Kay Hian Holdings, Ltd.		23,000		24,565
UOL Group, Ltd.		49,000		116,510
Venture Corp., Ltd.		23,000		137,083
WBL Corp., Ltd.		14,000		42,183
Wheelock Properties, Ltd.		29,000		36,379
Wing Tai Holdings, Ltd.		53,300		64,256
Yangzijiang Shipbuilding Holdings, Ltd.		120,000		81,929
Yongnam Holdings, Ltd.		118,000		24,837
				2,351,114
South Korea - 0.00%
Pantech & Curitel Communications, Inc. *		882		0
Pantech Company, Ltd. *		1,112		0
Spain - 2.26%
Abengoa SA		4,285		110,876
Adolfo Dominguez SA		1,580		30,828
Amper SA		2,602		24,368
Antena 3 de Television SA		8,128		85,180
Avanzit SA *		25,467		30,575
Azkoyen SA *		6,572		31,337
Banco Guipuzcoano SA		12,997		111,784
Banco Pastor SA		14,006		122,575
Baron de Ley SA *		611		26,289
Bolsas y Mercados Espanoles		2,758		98,024
Campofrio Alimentacion SA *		3,001		31,396
Cementos Portland Valderrivas SA		1,909		101,143
Construcciones & Auxiliar de Ferrocarriles SA		224		107,712

The accompanying notes are an integral part of the financial statements.

202

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Spain (continued)
Corporacion Dermoestetica SA *		1,908	$	13,056
Duro Felguera SA		3,275		34,518
Ebro Puleva SA		7,709		129,289
Elecnor SA		5,244		76,425
Ercros SA *		145,702		33,018
FAES FARMA SA		20,129		112,410
General de Alquiler de Maquinaria *		4,824		54,462
Gestevision Telecinco SA		2,864		32,141
Grupo Catalana Occidente SA		4,695		100,936
Grupo Empresarial Ence SA *		9,197		35,158
Iberpapel Gestion SA		1,757		25,340
La Seda de Barcelona SA		148,568		72,416
Miquel y Costas SA		1,078		22,761
Natraceutical SA *		22,388		15,290
NH Hoteles SA *		16,249		78,813
Obrascon Huarte Lain SA		3,611		94,583
Papeles y Cartones de Europa SA		5,226		24,533
Pescanova SA		439		15,872
Prim SA		2,446		25,177
Promotora de Informaciones SA *		17,908		108,001
Prosegur Cia de Seguridad SA		2,065		75,573
Redes Energeticas Nacionais SA		6,644		27,019
Service Point Solutions SA *		25,764		41,752
Sociedad Nacional Inds., Aplicaciones Celulosa Espanola SA *		13,663		18,330
Sol Melia SA		6,841		54,295
SOS Cuetara SA *		4,481		23,714
Tavex Algodonera SA *		8,440		7,604
Tecnicas Reunidas SA		2,353		127,918
Tecnocom, Telecomunicaciones & Energia SA *		4,417		21,490
Tubacex SA		10,497		47,967
Tubos Reunidos SA		9,612		31,633
Urbas Proyectos Urbanisticos SA *		10,449		2,787
Vertice Trescientos Sesenta Grados *		1,265		647
Vidrala SA		3,326		82,037
Viscofan SA		4,919		112,134
Vocento SA *		7,867		44,011
Zeltia SA *		18,631		89,392
				2,824,589
Sweden - 2.53%
AarhusKarlshamn AB		2,915		50,806
Acando AB, Series B		7,431		12,640
Active Biotech AB *		4,550		33,933
AddTech AB, Series B		3,800		56,846
Angpanneforeningen AB, Series B		2,716		55,248
Axfood AB		2,704		72,608
Axis Communications AB		4,940		45,853
BE Group AB		5,044		30,139
Beijer Alma AB		4,849		54,181
Beijer Electronics AB		984		15,377
Bergman & Beving AB, Series B		3,668		41,354
Bilia AB, Series A *		5,300		42,852
Billerud Aktibolag AB * (a)		4,772		24,263
BioGaia AB		3,167		33,943
Biovitrum AB *		7,538		64,652
Boliden AB		5,097		52,524
Cardo AB		2,290		60,207
Clas Ohlson AB, Series B		7,150		124,736
Cloetta AB, Class B *		6,984		28,005
Concordia Maritime AB, Series B		748		2,126
D. Carnegie & Company AB *		52,789		0
Elekta AB, Series B		9,359		165,190
Eniro AB *		4,936		24,989
Fagerhult AB		600		9,484
G & L Beijer AB		2,000		46,904
Gunnebo AB *		1,439		7,186
Hakon Invest AB		1,900		24,504
Haldex AB *		6,575		60,130
Hexagon AB		1,809		18,768
HIQ International AB *		5,688		21,496
Hoganas AB, Series B		3,718		60,979
Holmen AB, Series B		1,237		35,182
Industrial & Financial Systems AB		3,313		29,099
Indutrade AB		2,469		40,270
Intrum Justitia AB		7,011		74,753
JM AB *		11,499		123,668
KappAhl Holding AB		6,786		39,778
Lagercrantz AB		4,000		16,299
Lindab International AB		7,888		76,028
Lundin Petroleum AB, Series A *		6,021		55,252
Medivir AB *		2,195		19,747
Mekonomen AB		2,200		39,416
Micronic Laser Systems AB *		7,700		14,414
Modern Times Group AB, Series B		1,313		53,705
Munters AB *		8,920		57,562
NCC AB (a)		6,668		82,231
Net Insight AB *		50,000		32,754
New Wave Group AB, Series B		6,000		20,375
Nibe Industrier AB, Series B		10,140		96,331
Nobia AB		27,287		138,608
Nolato AB, Series B		3,557		25,372
OEM International AB, Series B		8,777		45,023
ORC Software AB		1,800		31,916
PA Resources AB *		12,583		51,186
Peab AB, Series B		19,597		115,170
Proffice AB *		10,000		26,843
Q-Med AB *		7,472		43,231
Rezidor Hotel Group AB *		13,763		45,974
RNB Retail & Brands AB *		15,241		14,381
SAS AB *		94,725		55,365
Seco Tools AB		274		2,970
Sensys Traffic AB		60,000		20,227
Skanditek Industriforvaltning AB		7,227		17,881
SkiStar AB, Series B		2,852		44,505
Studsvik AB		1,200		10,303
Sweco AB, Series B		5,392		36,208
TradeDoubler AB *		4,757		52,891
Trelleborg AB, Series B *		24,787		133,873
				3,160,714
Switzerland - 5.22%
Advanced Digital Broadcast Holdings SA *		310		13,994
AFG Arbonia-Forster Holding AG		528		11,497

The accompanying notes are an integral part of the financial statements.

203

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Switzerland (continued)
Allreal Holding AG		565	$	68,835
Also Holding AG *		779		22,063
Aryzta AG *		7,363		274,162
Ascom Holding AG *		7,392		89,337
Athris Holding AG *		70		65,537
Bachem Holding AG		525		35,176
Bank Coop AG		2,190		150,600
Bank Sarasin & Compagnie AG, Series B *		3,289		121,677
Banque Cantonale de Geneve		76		17,947
Banque Privee Edmond de Rothschild SA		1		27,405
Basilea Pharmaceutica AG *		1,130		99,708
Belimo Holding AG		79		77,858
Bell Holding AG		23		35,369
Berner Kantonalbank		485		106,275
Bobst Group AG *		1,425		58,944
Bossard Holding AG		795		43,561
Bucher Industries AG		639		74,867
Burckhardt Compression Holding AG		344		55,482
Card Guard AG * (a)		1,457		24,746
Centralschweizerische Kraftwerke AG		280		92,524
Charles Voegele Holding AG *		1,341		51,822
Clariant AG *		27,539		249,860
Conzzeta Holding AG		69		107,480
Daetwyler Holding AG		781		39,847
Dufry Group AG *		1,749		75,241
EFG International, ADR (a)		6,739		109,617
Eichhof Holding AG		21		5,858
Emmi AG		563		60,348
EMS-Chemie Holding AG		909		96,927
Energiedienst Holding AG		982		50,095
Flughafen Zuerich AG		403		108,936
Forbo Holding AG *		152		38,082
Galenica Holding AG		474		152,116
Georg Fischer AG *		478		117,511
Gurit Heberlein AG		40		21,949
Helvetia Patria Holding AG		479		153,827
Interroll Holding AG *		57		16,417
Kaba Holding AG, Series B		240		51,601
Kardex AG *		444		13,126
Komax Holding AG		335		19,075
Kudelski SA		6,719		152,678
Kuoni Reisen Holding AG, Series B		264		87,402
LEM Holding SA		310		86,431
Luzerner Kantonalbank AG		283		71,148
Medisize Holding AG		1,022		48,912
Metall Zug AG		24		52,338
Meyer Burger Technology AG *		641		120,810
Mobilezone Holding AG		5,131		35,401
Mobimo Holding AG *		646		93,328
Nobel Biocare Holding AG, Series BR		13,757		421,369
Orell Fuessli Holding AG		223		30,536
Panalpina Welttransport Holding AG		1,387		110,258
Partners Group Holding AG		1,245		143,509
Phoenix Mecano AG		81		28,700
Precious Woods Holding AG *		327		16,361
PubliGroupe SA		377		34,998
Rieter Holding AG *		353		64,357
Romande Energie Holding SA		53		103,492
Schaffner Holding AG *		90		13,329
Schulthess Group AG		805		41,620
Schweiter Technologies AG		243		92,739
Schweizerhall Holding AG		305		52,270
Schweizerische National-Versicherungs-Gesellschaft AG *		1,491		41,628
Siegfried Holding AG		495		43,171
Sika AG		189		240,389
St. Galler Kantonalbank		253		105,162
Sulzer AG		2,497		193,815
Swissfirst AG		1,124		46,976
Swisslog Holding AG		60,097		45,966
Swissquote Group Holding SA		1,018		50,930
Tamedia AG		591		37,413
Tecan Group AG		1,142		61,714
Temenos Group AG *		6,535		131,543
Tornos SA *		2,185		16,074
Valora Holding AG		333		72,442
Vaudoise Assurances Holding SA		226		38,591
Verwaltungs & Privat Bank AG		465		50,356
Vontobel Holding AG		2,623		91,332
VZ Holding AG		879		57,283
WMH Walter Meier AG, Series A		120		8,955
Ypsomed Holding AG *		908		59,921
Zehnder Group AG		36		40,502
Zuger Kantonalbank		20		77,485
				6,520,933
United Kingdom - 18.25%
A.G. Barr PLC		1,960		42,486
Aberdeen Asset Management PLC		72,476		162,213
AEA Technology PLC *		18,852		9,899
Aegis Group PLC		88,265		147,094
Aga Rangemaster Group PLC		17,247		41,466
Aggreko PLC		20,924		225,486
Alexon Group PLC		6,881		4,985
Alphameric PLC *		33,484		17,393
Anglo Pacific Group PLC		13,955		42,090
Anglo-Eastern Plantations PLC		3,005		17,158
Anite PLC		32,668		19,751
Antisoma PLC *		100,552		44,133
Ark Therapeutics Group PLC *		20,122		14,194
Arm Holdings PLC, ADR		36,643		232,683
Arriva PLC		21,983		169,567
Ashmore Group PLC		17,877		69,504
Ashtead Group PLC		51,117		67,487
Assura Group, Ltd. *		39,777		16,475
Aveva Group PLC		6,703		90,977
Avis Europe PLC *		85,382		55,657
Axis-Shield PLC *		9,883		58,772
Babcock International Group PLC		22,257		177,955
BBA Aviation PLC		47,385		118,552
Beazley PLC		59,045		106,932
Bellway PLC		12,567		180,042
Berkeley Group Holdings PLC *		9,481		145,407

The accompanying notes are an integral part of the financial statements.

204

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Bespak PLC		7,040	$	44,328
BICC PLC		18,413		99,871
Blacks Leisure Group PLC *		5,193		4,290
Bloomsbury Publishing PLC		9,864		21,109
BlueBay Asset Management PLC		15,668		72,286
Bodycote PLC		20,949		57,409
Bovis Homes Group PLC		13,533		116,239
Braemar Seascope Group PLC		1,189		6,777
Brewin Dolphin Holdings PLC		20,522		47,476
Brit Insurance Holdings PLC		33,131		117,149
British Airways PLC *		20,202		62,563
British Polythene Industries PLC		4,400		16,069
Britvic PLC		16,396		91,712
BSS Group PLC		13,812		70,257
BTG PLC *		28,558		88,877
Business Post Group PLC		6,109		28,562
Care UK PLC		6,460		28,827
Carillion PLC		41,835		200,188
Carpetright PLC		8,793		116,561
Carphone Warehouse Group PLC		33,988		101,115
Castings PLC		6,764		20,922
Catlin Group, Ltd.		34,545		186,592
Centaur Media PLC		19,732		12,355
Charles Stanley Group PLC		5,789		22,884
Charles Taylor Consulting PLC		5,241		17,884
Charter International PLC		16,185		160,757
Chemring Group PLC		3,525		119,271
Chesnara PLC		21,201		58,543
Chime Communications PLC		5,000		14,328
Chloride Group PLC		28,592		69,672
Chrysalis Group PLC *		7,473		9,976
Clarkson PLC		1,421		16,721
Clinton Cards PLC		33,476		16,910
Close Brothers Group PLC		15,534		193,173
Collins Stewart PLC		27,764		41,328
Colt Telecom Group PLC *		31,689		62,267
Communisis PLC		19,820		6,405
Computacenter PLC		11,130		48,157
Connaught PLC		12,117		73,810
Cookson Group PLC *		5,913		37,645
Corin Group PLC		4,201		4,382
Costain Group PLC		47,619		23,458
Cranswick PLC		5,196		51,196
Creston PLC		10,587		11,918
Croda International PLC		13,962		142,049
CSR PLC *		14,919		114,371
D.S. Smith PLC		37,951		56,044
Daily Mail and General Trust PLC		23,847		150,654
Dairy Crest Group PLC		14,905		74,053
Dana Petroleum PLC *		9,638		219,950
Davis Service Group PLC		19,057		121,002
De La Rue PLC Group		10,312		145,774
Debenhams PLC		125,507		162,577
Dechra Pharmaceuticals PLC		6,959		48,477
Delta PLC		15,616		40,617
Development Securities PLC		7,152		40,382
Development Securities PLC *		6,555		35,322
Devro PLC		15,211		30,037
Dicom Group PLC		6,393		14,835
Dignity PLC		6,116		60,150
Dimension Data Holdings PLC		164,297		156,688
Diploma PLC		10,843		27,589
Dixons Group PLC *		204,155		91,916
Domino Printing Sciences PLC		9,846		44,451
DTZ Holdings PLC *		19,551		30,754
Dunelm Group PLC		6,499		30,656
easyJet PLC *		21,661		112,179
Electrocomponents PLC		43,870		118,920
Elementis PLC		49,703		41,960
Emerald Energy PLC *		6,316		76,338
Euromoney Institutional Investor PLC		4,086		17,910
Evolution Group PLC		21,877		52,719
F&C Asset Management PLC		23,667		29,199
Fenner PLC		17,524		34,460
Filtrona PLC		20,887		55,508
Forth Ports PLC		4,084		86,216
Fortune Oil PLC *		272,360		34,294
French Connection Group PLC		23,390		21,784
Friends Provident Group PLC *		96,816		134,491
Fuller Smith & Turner PLC		8,112		65,009
Future PLC		44,714		15,109
Galiform PLC *		112,844		114,091
Galliford Try PLC		83,614		79,736
Game Group PLC		36,488		96,968
Genus PLC		6,656		63,062
Go-Ahead Group PLC		3,980		87,559
Goldshield Group PLC		6,425		41,326
Greene King PLC		20,878		162,586
Greggs PLC		8,569		56,363
Halfords Group PLC		20,002		109,728
Halma PLC		40,384		129,003
Hampson Industries PLC		26,754		34,670
Hansard Global PLC		11,952		29,303
Hardy Oil & Gas PLC *		12,212		67,461
Hardy Underwriting Bermuda, Ltd.		7,592		36,532
Hargreaves Lansdown PLC		21,220		83,893
Hays PLC		104,128		175,249
Headlam Group PLC		16,388		81,080
Helical Bar PLC		8,701		52,108
Helphire PLC		51,338		30,109
Henderson Group PLC		78,132		162,729
Henry Boot PLC		14,125		19,292
Heritage Oil, Ltd. *		19,736		167,873
Hikma Pharmaceuticals PLC		14,054		105,588
Hill & Smith Holdings PLC		14,323		69,147
Hiscox PLC		37,963		207,407
HMV Group PLC		39,707		75,633
Hochschild Mining PLC		10,925		50,242
Hogg Robinson Group PLC		39,788		17,879
Holidaybreak PLC		3,875		18,067
Homeserve PLC		5,291		125,736
Hunting PLC		10,945		88,226

The accompanying notes are an integral part of the financial statements.

205

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Huntsworth PLC		22,389	$	24,807
Hyder Consulting PLC		475		1,363
IG Group Holdings PLC		33,994		193,428
Imagination Technologies Group PLC *		42,827		113,136
IMI PLC		31,009		225,146
Inchcape PLC *		24,252		10,907
Informa PLC		47,547		220,159
Intec Telecom Systems PLC *		40,144		55,733
Intermediate Capital Group PLC		9,643		47,040
International Personal Finance PLC		25,827		63,684
Interserve PLC		14,294		55,466
ITE Group PLC		42,551		66,142
J.D. Wetherspoon PLC		11,284		87,010
James Fisher & Sons PLC		4,903		38,043
Jardine Lloyd Thompson Group PLC		15,119		118,178
JKX Oil & Gas PLC		9,108		35,992
John Menzies PLC		7,960		43,674
John Wood Group PLC		31,622		152,322
Johnston Press PLC *		131,792		81,212
Keller Group PLC		6,780		71,485
Kesa Electricals PLC		50,341		115,326
Kier Group PLC		3,821		70,529
Kingston Communications PLC		123,424		55,939
Ladbrokes PLC		61,063		192,548
Laird Group PLC		17,212		45,841
Laura Ashley Holdings PLC		68,094		18,808
Lavendon Group PLC		5,082		14,079
Liontrust Asset Management PLC		5,127		9,463
Logica PLC		185,914		346,718
Lookers PLC		35,795		35,798
LSL Property Services PLC *		7,930		24,355
Luminar Group Holdings PLC		21,089		47,496
Management Consulting Group PLC		73,960		33,560
Manganese Bronze Holdings PLC *		3,263		10,298
Marshalls PLC		34,610		70,251
Marston’s PLC		30,387		52,968
McBride PLC		17,330		40,725
Medusa Mining, Ltd. *		31,637		67,997
Meggitt PLC		80,341		278,669
Melrose PLC		54,023		139,593
Melrose Resources PLC		4,954		27,006
Michael Page International PLC		33,159		182,909
Micro Focus International PLC		19,599		120,049
Millennium & Copthorne Hotels PLC		16,903		101,107
Misys PLC *		48,309		144,920
Mitie Group PLC		31,719		133,467
Mondi PLC		39,532		187,515
Morgan Crucible Company PLC		27,442		69,224
Morgan Sindall PLC		5,441		62,017
Morse PLC		17,420		8,166
Mothercare PLC		7,645		70,578
Mouchel Parkman PLC		10,894		32,198
MWB Group Holdings PLC *		15,166		12,142
N. Brown Group PLC		18,394		65,896
National Express Group PLC		14,547		93,769
Northern Foods PLC		45,437		47,233
Northgate PLC		4,923		1,708
Northumbrian Water Group PLC		42,796		164,652
Novae Group PLC		7,830		42,574
Oxford Biomedica PLC *		90,000		16,504
Oxford Instruments PLC		5,102		14,809
Pace Micro Technology PLC		21,795		77,491
PartyGaming PLC *		15,798		65,603
Paypoint PLC		5,847		47,896
Pendragon PLC		119,021		69,640
Persimmon PLC		25,959		206,893
Peter Hambro Mining PLC		13,589		169,366
Phoenix IT Group, Ltd.		9,852		37,936
Photo-Me International PLC *		22,753		9,884
Premier Farnell PLC		36,962		98,920
Premier Foods PLC		238,839		171,627
Premier Oil PLC *		9,685		202,268
Prostrakan Group PLC *		2,053		5,137
Provident Financial PLC		12,886		184,689
Psion PLC		11,459		18,997
Punch Taverns PLC *		25,348		54,252
PV Crystalox Solar PLC		29,561		35,959
PZ Cussons PLC		20,894		73,792
Qinetiq PLC		64,033		144,379
Quintain Estates & Development PLC *		40,357		117,049
Rank Group PLC *		26,068		32,588
Rathbone Brothers PLC		4,369		60,073
REA Holdings PLC		2,127		13,618
Redrow PLC *		15,513		62,013
Regus PLC		62,639		104,765
Renishaw PLC		3,900		32,075
Rensburg Sheppards PLC		4,261		40,808
Rentokil Initial PLC		89,471		158,910
Restaurant Group PLC		19,119		58,950
Ricardo PlC		11,368		46,269
Rightmove PLC		14,759		128,593
RM PLC		13,737		36,963
Robert Walters PLC		8,828		21,408
Robert Wiseman Dairies PLC		4,588		30,833
ROK PLC		37,492		28,611
Rotork PLC		8,459		131,735
Royalblue Group PLC		5,481		101,394
RPC Group PLC		10,280		41,717
RPS Group PLC		23,867		77,303
Salamander Energy PLC *		12,056		40,352
Savills PLC		12,782		74,910
Scott Wilson Group PLC		138		189
SDL PLC *		7,187		39,196
Senior PLC		55,744		50,649
Severfield Rowen PLC		8,148		24,530
Shanks Group PLC		23,076		32,906
Shore Capital Group PLC		82,607		49,581
SIG PLC		66,079		150,393
Smiths News PLC		49,558		96,425
Soco International PLC *		4,686		99,635
Southern Cross Healthcare, Ltd. *		18,768		38,363
Spectris PLC		11,747		133,128

The accompanying notes are an integral part of the financial statements.

206

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
United Kingdom (continued)
Spirax-Sarco Engineering PLC		7,883	$	125,126
Spirent Communications PLC, ADR		1,208		6,330
Spirent Communications PLC		34,260		45,731
Sports Direct International PLC		40,613		56,623
SSL International PLC		19,617		177,330
St James’s Place PLC		19,486		72,204
St. Ives Group PLC		12,932		10,873
St. Modwen Properties PLC *		12,563		50,030
Stagecoach Group PLC		58,607		128,222
Sthree PLC		11,092		43,574
Ted Baker PLC		5,384		34,770
Telecom Plus PLC		5,142		24,389
Thorntons PLC		10,805		17,447
Tomkins PLC, SADR		21,690		248,567
Topps Tiles PLC *		25,009		36,910
Town Centre Securities PLC		4,430		12,490
Travis Perkins PLC		15,702		204,652
Tribal Group PLC		1,323		1,991
Trinity Mirror PLC		37,867		84,065
TT electronics PLC		26,687		25,753
Tullett Prebon PLC		25,044		164,043
UK Coal PLC *		13,407		25,945
Ultra Electronics Holdings PLC		6,954		142,055
Umeco PLC		6,440		24,672
United Business Media, Ltd.		25,338		190,356
UTV Media PLC		12,462		14,501
Vectura Group PLC *		35,006		47,725
Venture Production PLC		18,099		247,975
Victrex PLC		7,743		88,791
Vislink PLC		22,958		10,175
Vitec Group PLC		3,750		17,211
VP PLC		664		2,204
VT Group PLC		18,117		151,623
W.S. Atkins PLC		10,171		105,718
Weir Group PLC		22,143		231,905
Wellstream Holdings PLC		8,321		66,137
WH Smith PLC		15,331		109,767
Whitbread PLC		4,122		69,904
White Young Green PLC		7,216		1,366
William Hill PLC		56,547		169,774
Wilmington Group PLC		8,311		17,111
Wincanton PLC		11,768		41,124
Wolfson Microelectronics PLC *		11,249		25,500
WSP Group PLC		7,138		33,307
Xaar PLC		17,577		23,608
Xchanging PLC		23,627		85,389
Yell Group PLC *		94,441		70,141
Yule Catto & Company PLC		29,330		65,535
				22,779,298
United States - 0.27%
Calian Technologies, Ltd.		500		7,536
Candente Resource Corp. *		8,600		3,535
Cardero Resource Corp. *		13,100		12,923
Chartered Semiconductor Manufacturing, Ltd., ADR *		1,103		18,475
City Telecom HK, Ltd.		1,717		8,757
Computer Modelling Group, Ltd.		800		11,648
Dah Sing Banking Group, Ltd.		33,600		38,824
Easyhome, Ltd.		700		5,627
Far West Mining, Ltd. *		4,700		8,415
Formation Capital Corp. *		29,000		8,212
Fortune Minerals, Ltd. *		3,334		1,949
GBS Gold International, Inc. *		30,800		0
Glacier Media, Inc. *		8,800		14,549
Glentel, Inc.		1,100		13,826
Globestar Mining Corp. *		12,700		10,093
Hemisphere GPS, Inc. *		10,400		9,025
Hillsborough Resources, Ltd. *		4,900		1,969
Hutchison Telecommunications International, Ltd. *		10,300		32,239
Isotechnika Pharma, Inc. *		33,700		6,464
Marsulex, Inc.		3,500		31,971
Parkbridge Lifestyles Communities, Inc. *		6,530		25,470
Queenston Mining, Inc. *		5,100		24,551
Questerre Energy Corp. *		23,900		38,205
Redcorp Ventures, Ltd. *		9,000		41
				334,304
TOTAL COMMON STOCKS (Cost $161,498,862)			$	130,716,328
PREFERRED STOCKS - 0.02%
Australia - 0.02%
Village Roadshow, Ltd., 5.50%		20,000		18,578
TOTAL PREFERRED STOCKS (Cost $48,374)			$	18,578
WARRANTS - 0.00%
Australia - 0.00%
UXC, Ltd.
(Expiration Date 03/31/2010, Strike Price AUD 0.45) *		5,594		1,742
Hong Kong - 0.00%
Asia Standard International Group, Ltd.
(Expiration Date 09/07/2009, Strike Price HKD 0.63) *		474,951		1
ITC Corp., Ltd.
(Expiration Date 11/04/2009, Strike Price HKD 0.22) *		135,711		175
Matsunichi Communication Holdings, Ltd.
(Expiration Date 08/22/2010, Strike Price HKD 6.00) *		9,300		26
				202
TOTAL WARRANTS (Cost $518)			$	1,944
RIGHTS - 0.03%
Australia - 0.00%
ConnectEast Group
(Expiration Date 09/21/2009, Strike Price AUD 0.33) *		47,500		2,007
Grange Resources Corp., Ltd.
(Expiration Date 09/11/2009, Strike Price AUD 0.25) *		20,914		1,591
				3,598

The accompanying notes are an integral part of the financial statements.

207

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Small Company Fund (continued)

	Shares or Principal Amount		Value
RIGHTS (continued)
Canada - 0.00%
Bellus Health, Inc. (Expiration Date09/04/2009, Strike Price CAD 0.18) *		3,500	$	16
Finland - 0.01%
Ilkka-Yhtyma Oyj (Expiration Date 09/25/2009, Strike Price EUR 3.63) *		1,073		5,968
Stockmann Oyj Abp (Expiration Date 09/18/2009, Strike Price EUR 12.00) * (a)		4,832		2,476
				8,444
Germany - 0.00%
Rhoen-Klinikum AG (Expiration date 08/04/2009, Strike Price EUR 13.30) *		2		3
Greece - 0.01%
Alapis Holding Industrial & Commercial SA (Expiration Date 09/18/2009, Strike Price EUR 0.46) *		61,030		12,249
Sweden - 0.01%
Billerud AB (Expiration Date 09/23/2009, Strike Price SEK 19.00) *		4,772		11,463
Switzerland - 0.00%
Bank Sarasin & Cie AG (Expiration Date09/15/2009, Strike Price CHF 22.75) *		3,289		3,417
TOTAL RIGHTS (Cost $69,412)			$	39,190
SHORT TERM INVESTMENTS - 2.26%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		282,380	$	2,826,990
TOTAL SHORT TERM INVESTMENTS (Cost $2,824,918)			$	2,826,990
Total Investments (International Small Company Fund) (Cost $164,442,084) - 107.03%			$	133,603,030
Other assets and liabilities, net - (7.03)%				(8,776,045	)
TOTAL NET ASSETS - 100.00%			$	124,826,985

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Building Materials & Construction	5.98	%
Banking	5.07	%
Food & Beverages	4.40	%
Industrial Machinery	4.27	%
Business Services	4.26	%

International Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 97.33%
Australia - 0.81%
Brambles, Ltd.		1,487,304	$	9,331,505
Austria - 1.04%
Telekom Austria AG		685,030		11,976,165
Bermuda - 0.62%
PartnerRe, Ltd.		95,760	$	7,077,622
Brazil - 0.63%
Empresa Brasileira de Aeronautica SA, ADR		339,020		7,200,785
Canada - 1.18%
Biovail Corp. (a)		606,300		7,748,013
Talisman Energy, Inc.		362,800		5,832,637
				13,580,650
China - 1.43%
China Telecom Corp., Ltd.		18,363,589		9,448,977
Shanghai Electric Group Company, Ltd.		15,149,555		6,935,531
				16,384,508
France - 11.89%
AXA Group SA		863,786		19,748,654
Cap Gemini SA		200,190		9,707,326
Compagnie Generale des Etablissements Michelin, Class B		62,070		4,683,365
France Telecom SA (a)		1,397,501		35,628,641
GDF Suez		174,710		7,377,659
Sanofi-Aventis SA		330,216		22,432,437
Total SA		375,252		21,573,774
Vivendi SA		539,650		15,394,553
				136,546,409
Germany - 9.80%
Bayerische Motoren Werke (BMW) AG		326,524		14,906,046
Celesio AG		162,540		4,425,187
Deutsche Post AG		857,881		14,838,353
E.ON AG		278,060		11,783,175
Infineon Technologies AG *		2		11
Merck KGaA		110,860		10,063,968
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe)		133,066		19,850,327
SAP AG		394,750		19,285,416
Siemens AG		199,739		17,321,350
				112,473,833
Hong Kong - 1.39%
China Mobile, Ltd.		308,000		3,001,390
Hutchison Whampoa, Ltd.		1,836,620		12,915,361
				15,916,751
Israel - 1.25%
Check Point Software Technologies, Ltd. *		516,550		14,396,249
Italy - 2.15%
Autogrill SpA *		1,143,515		12,928,753
UniCredit Italiano SpA *		3,242,158		11,805,244
				24,733,997
Japan - 6.50%
Mitsubishi UFJ Financial Group, Inc.		1,716,800		10,891,264
Nintendo Company, Ltd.		47,700		12,864,125
Promise Company, Ltd. (a)		264,600		2,582,949
Sony Corp.		429,514		11,487,192
Takeda Pharmaceutical Company, Ltd.		160,800		6,477,931
Toyota Motor Corp.		312,200		13,313,533

The accompanying notes are an integral part of the financial statements.

208

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

International Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Japan (continued)
USS Company, Ltd.		271,530	$	17,015,248
				74,632,242
Netherlands - 5.72%
ING Groep NV *		1,759,422		26,625,006
Koninklijke (Royal) Philips Electronics NV		537,666		12,188,465
Randstad Holdings NV *		393,490		16,319,864
Reed Elsevier NV		997,669		10,589,151
				65,722,486
Norway - 4.90%
Aker Kvaerner ASA		979,950		9,665,726
StatoilHydro ASA		1,028,570		22,505,014
Telenor ASA *		2,550,521		24,066,791
				56,237,531
Russia - 0.57%
Gazprom OAO, SADR		308,000		6,529,600
Singapore - 2.85%
Flextronics International, Ltd. *		2,521,640		14,953,325
Singapore Telecommunications, Ltd.		8,144,000		17,733,585
				32,686,910
South Korea - 3.99%
KB Financial Group, Inc., ADR * (a)		314,328		12,815,152
Samsung Electronics Company, Ltd., GDR (f)		106,764		32,955,015
				45,770,167
Spain - 2.93%
Iberdrola SA		796,822		7,397,436
Telefonica SA		1,037,699		26,200,455
				33,597,891
Sweden - 1.86%
Ericsson (LM), Series B		1,652,914		15,858,409
Niscayah Group AB		2,955,338		5,446,217
				21,304,626
Switzerland - 7.84%
Adecco SA		488,160		23,468,563
Nestle SA		491,890		20,444,501
Novartis AG		282,470		13,116,243
Roche Holdings AG - Genusschein		55,770		8,874,293
Swiss Re		316,853		14,701,358
UBS AG - Swiss Exchange *		511,498		9,458,041
				90,062,999
Taiwan - 5.84%
Compal Electronics, Inc., GDR (f)		3,013,358		15,196,666
Lite-On Technology Corp., GDR		1,159,880		13,002,481
Lite-On Technology Corp.		6,392,264		7,129,407
Mega Financial Holding Company, Ltd.		26,295,000		13,053,935
Taiwan Semiconductor Manufacturing Company, Ltd.		10,392,576		18,632,218
				67,014,707
United Kingdom - 20.30%
Aviva PLC		1,990,750		13,033,138
BP PLC		2,686,052		23,119,675
British Sky Broadcasting Group PLC		1,840,516		16,293,688
Compass Group PLC		1,610,677		8,564,638
G4S PLC		3,063,280		11,089,130
GlaxoSmithKline PLC		992,205		19,423,471
HSBC Holdings PLC		522,050		5,703,518
Kingfisher PLC		6,983,770		23,969,319
Marks & Spencer Group PLC		1,044,400		5,746,971
Old Mutual PLC *		6,822,982		10,341,133
Pearson PLC		985,766		11,990,050
Persimmon PLC *		779,115		6,209,530
Premier Foods PLC *		8,745,586		6,284,497
Rentokil Initial PLC		5,303,917		9,420,337
Royal Dutch Shell PLC, B Shares		731,283		19,881,762
Tesco PLC		921,040		5,639,154
The Sage Group PLC		767,500		2,744,264
Vodafone Group PLC		15,580,476		33,585,268
				233,039,543
United States - 1.84%
ACE, Ltd.		405,496		21,158,781
TOTAL COMMON STOCKS (Cost $1,244,692,216)			$	1,117,375,957
SHORT TERM INVESTMENTS - 7.02%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		5,083,238	$	50,889,821
Paribas Corp.
0.16% due 09/01/2009		29,645,000		29,645,000
TOTAL SHORT TERM INVESTMENTS (Cost $80,529,228)			$	80,534,821
Total Investments (International Value Fund) (Cost $1,325,221,444) - 104.35%			$	1,197,910,778
Other assets and liabilities, net - (4.35)%				(49,927,350	)
TOTAL NET ASSETS - 100.00%			$	1,147,983,428

The portfolio had the following five top industry concentrations as of August 31, 2009 (as a percentage of total net assets):

Telecommunications Equipment & Services	12.27	%
Insurance	11.55	%
Pharmaceuticals	6.53	%
Business Services	6.42	%
Electronics	6.24	%

Investment Quality Bond Fund

	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 26.05%
U.S. Treasury Bonds - 24.38%
5.375% due 02/15/2031	$	1,000,000	$	1,169,844
7.25% due 08/15/2022		1,375,000		1,832,616
7.50% due 11/15/2016		5,450,000		6,987,494
7.875% due 02/15/2021		9,250,000		12,712,969
8.125% due 08/15/2021		3,300,000		4,637,530
8.125% due 08/15/2019 ***		2,900,000		4,004,720

The accompanying notes are an integral part of the financial statements.

209

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

		Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS (continued)
U.S. Treasury Bonds (continued)
8.75% due 05/15/2017 to 08/15/2020		$	9,785,000	$	13,987,481
					45,332,654
U.S. Treasury Notes - 1.67%
3.125% due 08/31/2013			2,000,000		2,088,906
6.50% due 02/15/2010			1,000,000		1,028,164
					3,117,070
TOTAL U.S. TREASURY OBLIGATIONS (Cost $45,507,265)				$	48,449,724
U.S. GOVERNMENT AGENCY OBLIGATIONS - 5.14%
Federal Home Loan Mortgage Corp. - 1.57%
4.00% due 11/15/2019			135,265		137,282
5.00% due 03/01/2019 to 12/01/2034			2,661,158		2,760,105
6.50% due 04/01/2029 to 08/01/2034			21,540		23,136
7.50% due 06/01/2010 to 05/01/2028			5,493		5,992
					2,926,515
Federal National Mortgage
Association - 3.40%
4.654% due 06/01/2013			176,218		186,244
4.86% due 01/01/2015			2,826,651		2,980,112
4.918% due 02/01/2013			256,395		272,841
5.00% due 03/01/2019 to 06/01/2019			1,060,225		1,121,125
5.50% due 08/01/2035 to 11/01/2035			1,009,270		1,055,830
5.629% due 12/01/2011			202,596		216,318
5.936% due 11/01/2011			108,071		116,290
6.047% due 05/01/2012			124,695		134,939
6.085% due 10/01/2011			135,621		145,626
6.095% due 03/01/2012			83,445		90,667
6.50% due 09/01/2031			87		94
7.00% due 06/01/2029			289		317
					6,320,403
Government National Mortgage
Association - 0.13%
6.00% due 12/15/2013 to 04/15/2035			50,717		54,167
6.50% due 06/15/2028 to 08/15/2034			40,755		44,007
7.00% due 11/15/2031 to 10/15/2034			123,017		134,109
8.00% due 07/15/2030 to 10/15/2030			2,673		2,957
					235,240
Housing & Urban Development - 0.04%
7.498% due 08/01/2011			77,000		77,445
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $9,064,109)				$	9,559,603
FOREIGN GOVERNMENT OBLIGATIONS - 1.12%
Brazil - 1.12%
Federative Republic of Brazil
5.875% due 01/15/2019			775,000		800,187
7.125% due 01/20/2037			90,000		99,450
10.00% due 01/01/2017	BRL		2,500,000		1,182,536
					2,082,173
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $1,811,724)				$	2,082,173
CORPORATE BONDS - 47.09%
Advertising - 0.00%
Catalina Marketing Corp.
10.50% due 10/01/2015 (f)		$	5,000	$	4,862
Aerospace - 0.07%
Goodrich Corp.
7.10% due 11/15/2027			115,000		116,988
Vought Aircraft Industries, Inc.
8.00% due 07/15/2011			10,000		9,550
					126,538
Agriculture - 0.37%
Cargill, Inc.
5.60% due 09/15/2012 (f)			635,000		677,419
Case New Holland, Inc.
7.125% due 03/01/2014			10,000		9,550
					686,969
Air Travel - 0.32%
American Airlines Pass Through Trust 2003-01
3.857% due 07/09/2010			16,055		15,412
Continental Airlines, Inc., Series 071A
5.983% due 04/19/2022			30,000		25,950
Continental Airlines, Inc., Series 974A
6.90% due 01/02/2018			103,865		90,363
Continental Airlines, Inc., Series 981A
6.648% due 09/15/2017			204,499		175,869
Continental Airlines, Inc., Series ERJ1
9.798% due 04/01/2021			8,552		5,644
Southwest Airlines Company, Series 07-1
6.15% due 08/01/2022			289,810		281,116
					594,354
Aluminum - 0.03%
Alcan, Inc.
6.45% due 03/15/2011			59,000		61,653
Novelis, Inc.
7.25% due 02/15/2015			3,000		2,430
					64,083
Auto Services - 0.01%
Avis Budget Car Rental LLC
7.625% due 05/15/2014			15,000		12,075
Automobiles - 0.12%
DaimlerChrysler NA Holding Corp.
8.50% due 01/18/2031			175,000		207,583
Ford Motor Company
7.45% due 07/16/2031			10,000		7,650
					215,233
Banking - 4.28%
BAC Capital Trust XI
6.625% due 05/23/2036			15,000		11,770
BAC Capital Trust XIV
5.63% until 03/15/2012, then variable due 12/31/2049			10,000		6,200
Bank of America Corp.
4.375% due 12/01/2010			436,000		445,273
5.42% due 03/15/2017			800,000		732,276
5.65% due 05/01/2018			125,000		120,868
5.75% due 12/01/2017			100,000		97,274

The accompanying notes are an integral part of the financial statements.

210

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
Barclays Bank PLC
8.55% until 06/15/2011, then
variable due 09/29/2049 (f)	$	10,000	$	8,700
Chase Manhattan Corp.
7.00% due 11/15/2009		135,000		136,382
First Republic Bank of San Francisco
7.75% due 09/15/2012		111,000		116,272
First Union National Bank
7.80% due 08/18/2010		350,000		369,196
HBOS PLC
6.00% due 11/01/2033 (f)		210,000		141,770
HSBC Bank USA NA, BKNT
7.00% due 01/15/2039		250,000		285,060
HSBC Holdings PLC
6.80% due 06/01/2038		850,000		906,006
HSBC Holdings PLC, EMTN
0.7775% due 10/06/2016 (b)		600,000		555,973
National Australia Bank, Ltd.
8.60% due 05/19/2010		23,000		24,168
NB Capital Trust IV
8.25% due 04/15/2027		15,000		13,725
NBD Bancorp
8.25% due 11/01/2024		270,000		324,339
Republic New York Corp.
9.50% due 04/15/2014		135,000		156,297
Sanwa Bank, Ltd.
7.40% due 06/15/2011		300,000		317,295
Sovereign Bancorp, Inc.
4.80% due 09/01/2010		30,000		30,829
The Royal Bank of Scotland PLC
4.875% due 08/25/2014 (f)		550,000		550,836
Wachovia Corp.
5.75% due 06/15/2017		385,000		406,029
Wachovia Corp., MTN
5.50% due 05/01/2013		570,000		605,620
Wells Fargo & Company
4.95% due 10/16/2013		1,020,000		1,049,529
Westpac Banking Corp.
4.20% due 02/27/2015		550,000		553,479
				7,965,166
Biotechnology - 0.15%
Amgen, Inc.
6.40% due 02/01/2039		245,000		278,514
Broadcasting - 0.69%
British Sky Broadcasting Group PLC
5.625% due 10/15/2015 (f)		131,000		136,303
CanWest Media, Inc.
8.00% due 09/15/2012 ^		30,000		16,275
CBS Corp.
8.20% due 05/15/2014		335,000		364,891
Liberty Media Corp.
5.70% due 05/15/2013		4,000		3,800
8.25% due 02/01/2030		2,000		1,520
News America Holdings, Inc.
6.90% due 03/01/2019 (f)		100,000		112,653
7.75% due 01/20/2024		453,000		467,974
9.25% due 02/01/2013		109,000		127,194
News America, Inc.
5.65% due 08/15/2020 (f)		55,000		56,584
Sinclair Broadcast Group, Inc.
4.875 due 07/15/2018		6,000		5,175
				1,292,369
Building Materials & Construction - 0.01%
D.R. Horton, Inc.
9.75% due 09/15/2010		14,000		14,490
Business Services - 0.04%
Deluxe Corp.
7.375% due 06/01/2015		50,000		44,750
Harland Clarke Holdings Corp.
9.50% due 05/15/2015		10,000		8,500
Lender Processing Services, Inc.
8.125% due 07/01/2016		5,000		5,113
SunGard Data Systems, Inc.
9.125% due 08/15/2013		13,000		12,870
				71,233
Cable & Television - 3.24%
Cablevision Systems Corp., Series B
8.00% due 04/15/2012		8,000		8,180
Comcast Corp.
5.70% due 05/15/2018		275,000		290,390
5.70% due 07/01/2019		350,000		369,342
5.85% due 11/15/2015		600,000		650,440
COX Communications, Inc.
5.875% due 12/01/2016 (f)		350,000		365,401
7.125% due 10/01/2012		458,000		507,755
CSC Holdings, Inc.
7.625% due 07/15/2018		21,000		20,108
DirecTV Holdings LLC
6.375% due 06/15/2015		10,000		10,125
Mediacom Broadband LLC
8.50% due 10/15/2015		27,000		26,393
Quebecor Media, Inc.
7.75% due 03/15/2016		15,000		14,138
7.75% due 03/15/2016		5,000		4,713
Rogers Cable, Inc.
6.25% due 06/15/2013		130,000		142,944
TCI Communications, Inc.
7.875% due 02/15/2026		150,000		171,468
8.75% due 08/01/2015		183,000		219,408
Time Warner Cable, Inc.
5.85% due 05/01/2017		815,000		855,882
6.55% due 05/01/2037		150,000		157,831
6.75% due 06/15/2039		70,000		74,854
8.25% due 02/14/2014		140,000		163,768
Time Warner Companies, Inc.
7.25% due 10/15/2017		60,000		67,670
Time Warner, Inc.
6.75% due 04/15/2011		150,000		159,467
7.70% due 05/01/2032		602,000		667,519
Viacom, Inc.
6.125% due 10/05/2017		600,000		634,166
6.25% due 04/30/2016		252,000		270,355
6.625% due 05/15/2011		175,000		181,624
				6,033,941

The accompanying notes are an integral part of the financial statements.

211

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Cellular Communications - 1.10%
AT&T Wireless Services, Inc.
7.875% due 03/01/2011	$	94,000	$	101,974
8.125% due 05/01/2012		56,000		63,707
8.75% due 03/01/2031		397,000		527,657
Cingular Wireless LLC
7.125% due 12/15/2031		67,000		77,241
Cricket Communications, Inc.
9.375% due 11/01/2014		5,000		4,712
MetroPCS Wireless, Inc.
9.25% due 11/01/2014		10,000		9,813
Rogers Wireless, Inc.
9.625% due 05/01/2011		27,000		29,978
Verizon Wireless Capital LLC
5.55% due 02/01/2014 (f)		595,000		643,426
Vodafone Group PLC
5.45% due 06/10/2019		350,000		364,196
7.75% due 02/15/2010		211,000		217,399
				2,040,103
Chemicals - 0.31%
Agrium, Inc.
7.125% due 05/23/2036		225,000		234,375
Ashland, Inc.
9.125% due 06/01/2017 (f)		10,000		10,500
Cytec Industries, Inc.
4.60% due 07/01/2013		133,000		125,005
6.00% due 10/01/2015		200,000		191,386
IMC Global, Inc.
7.30% due 01/15/2028		3,000		2,868
Momentive Performance Materials, Inc.
9.75% due 12/01/2014		10,000		6,500
Terra Capital, Inc., Series B
7.00% due 02/01/2017		5,000		4,712
				575,346
Coal - 0.06%
Peabody Energy Corp.
6.875% due 03/15/2013		6,000		6,000
7.375% due 11/01/2016		100,000		100,000
				106,000
Commercial Services - 0.01%
Aramark Services, Inc.
8.50% due 02/01/2015		15,000		14,550
Computers & Business Equipment - 0.19%
Seagate Technology HDD Holdings
6.375% due 10/01/2011		5,000		4,925
Seagate Technology International
10.00% due 05/01/2014 (f)		5,000		5,363
Unisys Corp.
12.75% due 10/15/2014 (f)		12,000		12,315
14.25% due 09/15/2015 (f)		2,000		1,960
Xerox Corp.
5.50% due 05/15/2012		170,000		177,224
6.40% due 03/15/2016		125,000		127,656
7.20% due 04/01/2016		15,000		15,553
				344,996
Containers & Glass - 0.10%
Bemis Company, Inc.
6.80% due 08/01/2019		20,000		21,754
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		16,000		16,160
Pactiv Corp.
5.875% due 07/15/2012		135,000		143,824
Solo Cup Company
10.50% due 11/01/2013 (f)		5,000		5,250
				186,988
Correctional Facilities - 0.05%
Corrections Corp. of America
6.75% due 01/31/2014		100,000		97,250
Crude Petroleum & Natural Gas - 0.86%
Atmos Energy Corp.
6.35% due 06/15/2017		75,000		80,699
Burlington Resources Finance Company
7.40% due 12/01/2031		309,000		359,596
Canadian Natural Resources, Ltd.
5.15% due 02/01/2013		150,000		156,905
6.45% due 06/30/2033		37,000		38,976
Chesapeake Energy Corp.
6.50% due 08/15/2017		20,000		17,650
6.625% due 01/15/2016		97,000		88,149
7.50% due 09/15/2013		3,000		2,940
7.625% due 07/15/2013		10,000		9,800
EnCana Corp.
5.90% due 12/01/2017		450,000		484,894
Marathon Oil Corp.
6.50% due 02/15/2014		255,000		280,854
Nexen, Inc.
7.50% due 07/30/2039		40,000		41,898
PetroHawk Energy Corp.
9.125% due 07/15/2013		15,000		15,225
Plains Exploration & Production Company
7.75% due 06/15/2015		10,000		9,700
SandRidge Energy, Inc.
8.00% due 06/01/2018 (f)		5,000		4,525
Southwestern Energy Company
7.50% due 02/01/2018 (f)		10,000		10,063
				1,601,874
Domestic Oil - 0.18%
Motiva Enterprises LLC
5.20% due 09/15/2012 (f)		148,000		152,604
Range Resources Corp.
7.50% due 05/15/2016		10,000		9,900
Valero Energy Corp.
8.75% due 06/15/2030		162,000		174,523
				337,027
Drugs & Health Care - 0.01%
Allegiance Corp.
7.00% due 10/15/2026		13,000		13,141
Rite Aid Corp.
10.375% due 07/15/2016		15,000		14,475
				27,616

The accompanying notes are an integral part of the financial statements.

212

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities - 5.28%
Carolina Power & Light Company
6.50% due 07/15/2012	$	671,000	$	739,372
CenterPoint Energy, Inc.
6.50% due 05/01/2018		560,000		550,828
Commonwealth Edison Company
5.95% due 08/15/2016		125,000		134,930
6.15% due 03/15/2012		92,000		99,425
Dominion Resources, Inc.
6.40% due 06/15/2018		395,000		436,814
7.00% due 06/15/2038		150,000		175,407
Duke Energy Corp.
5.65% due 06/15/2013		600,000		641,135
Dynegy Holdings, Inc.
7.125% due 05/15/2018		15,000		9,975
Edison Mission Energy
7.75% due 06/15/2016		20,000		16,300
Electricite de France SA
6.50% due 01/26/2019 (f)		400,000		456,746
Enel Finance International SA
6.80% due 09/15/2037 (f)		555,000		638,726
Exelon Generation Company, LLC
6.95% due 06/15/2011		185,000		198,489
Georgia Power Company
5.25% due 12/15/2015		600,000		646,797
Israel Electric Corp., Ltd.
7.25% due 01/15/2019 (f)		475,000		501,319
Midamerican Energy Holdings
6.125% due 04/01/2036		250,000		265,009
New York State Electric & Gas Corp.
5.75% due 05/01/2023		74,000		68,175
Northern States Power Company
6.25% due 06/01/2036		125,000		143,158
6.50% due 03/01/2028		67,000		76,541
NSTAR
8.00% due 02/15/2010		270,000		277,803
Ohio Edison Company
6.875% due 07/15/2036		150,000		166,659
Old Dominion Electric Cooperative
6.25% due 06/01/2011		141,000		149,392
Oncor Electric Delivery Company
7.50% due 09/01/2038		150,000		188,487
Potomac Electric Power Company
6.50% due 11/15/2037		250,000		282,306
PPL Electric Utilities Corp.
6.25% due 05/15/2039		80,000		90,204
PSEG Power LLC
8.625% due 04/15/2031		154,000		205,242
Puget Sound Energy, Inc.
7.00% due 03/09/2029		54,000		59,631
RRI Energy, Inc.
6.75% due 12/15/2014		8,000		8,000
Sierra Pacific Power Company, Series M
6.00% due 05/15/2016		150,000		155,834
Southern California Edison Company
6.00% due 01/15/2034		326,000		362,545
Taqa Abu Dhabi National Energy Company
6.50% due 10/27/2036 (f)		475,000		430,112
TXU Corp., Series P
5.55% due 11/15/2014		26,000		16,714
Union Electric Company
6.40% due 06/15/2017		850,000		931,574
Wisconsin Electric Power Company
6.50% due 06/01/2028		94,000		107,484
Wisconsin Energy Corp.
6.20% due 04/01/2033		138,000		149,061
Wisconsin Power and Light Company
5.00% due 07/15/2019		425,000		440,010
				9,820,204
Electronics - 0.12%
Avnet, Inc.
6.625% due 09/15/2016		200,000		206,123
L-3 Communications Corp., Series B
6.375% due 10/15/2015		10,000		9,425
Sanmina-SCI Corp.
3.3794% due 06/15/2010 (b)(f)		9,000		8,730
				224,278
Energy - 0.40%
Abu Dhabi National Energy Company
5.875% due 10/27/2016 (f)		110,000		110,397
Aquila, Inc.
11.875% due 07/01/2012		20,000		22,700
Midamerican Funding LLC
6.75% due 03/01/2011		260,000		276,762
Mirant North America LLC
7.375% due 12/31/2013		20,000		19,200
Nevada Power Company
6.50% due 08/01/2018		150,000		163,746
NRG Energy, Inc.
7.25% due 02/01/2014		25,000		24,313
7.375% due 01/15/2017		5,000		4,763
XTO Energy, Inc.
6.75% due 08/01/2037		120,000		131,590
				753,471
Financial Services - 9.71%
AGFC Capital Trust I
6.0% until 01/15/2017, then variable due 01/15/2067 (f)		170,000		56,950
American Express Company
7.25% due 05/20/2014		500,000		550,247
American Express Credit Corp.
5.125% due 08/25/2014		360,000		364,368
American General Finance Corp.
5.375% due 10/01/2012		154,000		108,185
Arch Western Finance LLC
6.75% due 07/01/2013		16,000		15,280
BAT International Finance PLC
9.50% due 11/15/2018 (f)		200,000		255,440
Bear Stearns Companies, Inc.
5.35% due 02/01/2012		80,000		84,353
6.40% due 10/02/2017		105,000		113,942
6.95% due 08/10/2012		345,000		385,454
Capital One Capital IV
6.745% until 02/17/2032, then variable due 02/17/2037		125,000		90,000
Capital One Financial Corp.
7.375% due 05/23/2014		60,000		65,451

The accompanying notes are an integral part of the financial statements.

213

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Capmark Financial Group, Inc.
7.875% due 05/10/2012	$	95,000	$	19,468
Charles Schwab Corp.
4.95% due 06/01/2014		230,000		241,959
CIT Group Funding Company of Canada
4.65% due 07/01/2010		10,000		8,219
CIT Group, Inc.
5.00% due 02/01/2015		91,000		51,211
5.65% due 02/13/2017		5,000		2,810
5.80% due 07/28/2011		10,000		5,956
7.625% due 11/30/2012		45,000		25,496
Citigroup Capital XXI
8.3% until 12/21/2037, then variable due 12/21/2057		30,000		25,275
Citigroup, Inc.
4.875% due 05/07/2015		286,000		258,459
5.50% due 08/27/2012		900,000		915,260
6.50% due 08/19/2013		420,000		431,273
6.875% due 03/05/2038		275,000		248,372
Countrywide Financial Corp.
4.50% due 06/15/2010		70,000		70,671
Discover Financial Services
6.45% due 06/12/2017		300,000		261,575
Dollar Financial Corp.
2.875% due 06/30/2027		10,000		8,073
Equitable Companies, Inc.
7.00% due 04/01/2028		235,000		219,320
Erac USA Finance Company
8.00% due 01/15/2011 (f)		534,000		556,414
Farmers Exchange Capital
7.05% due 07/15/2028 (f)		350,000		282,121
Ford Motor Credit Company LLC
7.00% due 10/01/2013		21,000		18,727
7.375% due 10/28/2009		5,000		5,000
7.875% due 06/15/2010		5,000		4,990
GATX Financial Corp.
5.50% due 02/15/2012		200,000		199,578
General Electric Capital Corp.
4.80% due 05/01/2013		475,000		493,224
6.125% due 02/22/2011		67,000		70,813
6.75% due 03/15/2032		934,000		926,495
GMAC LLC
7.75% due 01/19/2010 (f)		15,000		14,888
8.00% due 11/01/2031 (f)		18,000		13,905
Goldman Sachs Group, Inc.
5.45% due 11/01/2012		340,000		362,434
6.00% due 05/01/2014		60,000		64,692
6.15% due 04/01/2018		750,000		791,686
6.75% due 10/01/2037		905,000		906,067
6.875% due 01/15/2011		208,000		221,938
7.50% due 02/15/2019		235,000		270,554
International Lease Finance Corp.
5.625% due 09/15/2010		170,000		159,647
5.875% due 05/01/2013		250,000		196,739
6.375% due 03/25/2013		145,000		113,779
JPMorgan Chase & Company
5.15% due 10/01/2015		200,000		204,216
5.375% due 10/01/2012		760,000		816,014
6.00% due 01/15/2018		555,000		596,455
JPMorgan Chase Capital XV
5.875% due 03/15/2035		567,000		486,574
Lazard Group LLC
6.85% due 06/15/2017		585,000		572,394
Merrill Lynch & Company, Inc.
6.40% due 08/28/2017		740,000		729,268
7.75% due 05/14/2038		135,000		143,354
Merrill Lynch & Company, Inc., MTN
6.875% due 04/25/2018		425,000		433,959
Mizuho Financial Group, Cayman, Ltd.
5.79% due 04/15/2014 (f)		246,000		254,972
Morgan Stanley
5.55% due 04/27/2017		225,000		224,118
6.25% due 08/28/2017		500,000		515,534
6.75% due 04/15/2011		106,000		112,730
Morgan Stanley, MTN
6.00% due 04/28/2015		350,000		369,714
6.625% due 04/01/2018		675,000		721,264
NiSource Finance Corp.
6.40% due 03/15/2018		200,000		197,524
Sun Canada Financial Company
7.25% due 12/15/2015 (f)		229,000		228,847
Sunamerica, Inc.
8.125% due 04/28/2023		135,000		112,503
US Bancorp
7.50% due 06/01/2026		750,000		772,748
				18,048,946
Food & Beverages - 2.06%
Anheuser-Busch InBev Worldwide, Inc.
6.875% due 11/15/2019 (f)		125,000		139,823
7.75% due 01/15/2019 (f)		400,000		468,357
Companhia de Bebidas das Americas
8.75% due 09/15/2013		365,000		423,400
ConAgra Foods, Inc.
5.819% due 06/15/2017		74,000		79,167
6.75% due 09/15/2011		5,000		5,437
Dr. Pepper Snapple Group, Inc.
6.82% due 05/01/2018		440,000		490,784
General Mills, Inc.
5.20% due 03/17/2015		190,000		204,515
5.65% due 02/15/2019		105,000		113,453
Kellogg Company
4.45% due 05/30/2016		400,000		418,553
Kraft Foods, Inc.
6.125% due 02/01/2018		150,000		164,157
6.50% due 11/01/2031		266,000		284,880
6.875% due 02/01/2038		250,000		286,804
PepsiCo, Inc.
7.90% due 11/01/2018		235,000		296,376
SABMiller PLC
6.20% due 07/01/2011 (f)		300,000		319,613
Smithfield Foods, Inc., Series B
7.75% due 05/15/2013		10,000		8,250
Tyson Foods, Inc.
7.85% due 04/01/2016		125,000		123,437
10.50% due 03/01/2014		5,000		5,575
				3,832,581

The accompanying notes are an integral part of the financial statements.

214

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Forest Products - 0.19%
Weyerhaeuser Company
6.75% due 03/15/2012	$	308,000	$	318,202
7.95% due 03/15/2025		40,000		35,564
				353,766
Funeral Services - 0.00%
Service Corp. International
7.625% due 10/01/2018		10,000		9,575
Gas & Pipeline Utilities - 1.13%
CenterPoint Energy Resources Corp.
6.125% due 11/01/2017		125,000		128,409
El Paso Corp.
7.00% due 06/15/2017		10,000		9,399
El Paso Natural Gas Company
5.95% due 04/15/2017		25,000		25,689
Kinder Morgan Energy Partners LP
6.85% due 02/15/2020		530,000		582,735
7.125% due 03/15/2012		208,000		227,721
Kinder Morgan Finance Company
5.70% due 01/05/2016		20,000		18,300
NGPL PipeCo LLC
6.514% due 12/15/2012 (f)		675,000		730,435
TransCanada Pipelines, Ltd.
7.625% due 01/15/2039		310,000		384,985
				2,107,673
Healthcare Products - 0.30%
Biomet, Inc.
10.00% due 10/15/2017		5,000		5,250
Inverness Medical Innovations, Inc.
9.00% due 05/15/2016		10,000		9,950
Roche Holdings, Inc.
6.00% due 03/01/2019		475,000		525,692
Universal Hospital Services, Inc., PIK
8.50% due 06/01/2015		10,000		9,650
				550,542
Healthcare Services - 0.29%
DaVita, Inc.
6.625% due 03/15/2013		2,000		1,940
7.25% due 03/15/2015		2,000		1,930
Express Scripts, Inc.
6.25% due 06/15/2014		235,000		256,830
McKesson Corp.
7.50% due 02/15/2019		30,000		35,173
WellPoint, Inc.
7.00% due 02/15/2019		220,000		243,205
				539,078
Homebuilders - 0.14%
D.R. Horton, Inc.
7.875% due 08/15/2011		250,000		256,250
Hotels & Restaurants - 0.01%
Buffalo Thunder Development Authority
9.375% due 12/15/2014 ^ (f)		20,000		3,550
Wyndham Worldwide Corp.
6.00% due 12/01/2016		25,000		21,778
				25,328
Household Products - 0.18%
Procter & Gamble, Series A
9.36% due 01/01/2021	$	262,581	$	328,373
Industrial Machinery - 0.01%
CPM Holdings, Inc.
10.625% due 09/01/2014 (f)		10,000		10,100
Industrials - 0.01%
Airgas, Inc.
7.125% due 10/01/2018 (f)		10,000		9,975
Insurance - 2.73%
ACE Capital Trust II
9.70% due 04/01/2030		248,000		248,314
ACE INA Holdings, Inc.
5.70% due 02/15/2017		100,000		106,562
5.875% due 06/15/2014		125,000		135,515
Aflac, Inc.
8.50% due 05/15/2019		65,000		75,518
AIG SunAmerica Global Financing X
6.90% due 03/15/2032 (f)		100,000		71,080
Allied World Assurance Holdings, Ltd.
7.50% due 08/01/2016		145,000		139,869
AXA Equitable Life Insurance
7.70% due 12/01/2015 (f)		250,000		248,239
Everest Reinsurance Holdings, Inc.		��
6.6% until 05/15/2017, then variable due 05/15/2037		495,000		341,550
8.75% due 03/15/2010		294,000		302,548
Fidelity National Title Group, Inc.
7.30% due 08/15/2011		26,000		25,927
Jackson National Life Insurance Company
8.15% due 03/15/2027 (f)		377,000		328,635
Liberty Mutual Insurance Company
7.697% due 10/15/2097 (f)		925,000		614,664
Metlife, Inc.
5.375% due 12/15/2012		150,000		158,975
Metropolitan Life Global Funding I
5.125% due 04/10/2013 (f)		335,000		344,642
Nationwide Mutual Insurance Company
8.25% due 12/01/2031 (f)		260,000		245,122
Navigators Group, Inc.
7.00% due 05/01/2016		59,000		47,521
Ohio National Life Insurance Company
8.50% due 05/15/2026 (f)		155,000		132,565
Principal Life Global Funding I
5.125% due 10/15/2013 (f)		225,000		227,596
6.125% due 10/15/2033 (f)		108,000		89,165
Prudential Financial, Inc., MTN
5.15% due 01/15/2013		355,000		357,702
Reinsurance Group of America, Inc.
6.75% due 12/15/2011		135,000		138,388
Unitrin, Inc.
6.00% due 05/15/2017		350,000		281,703
UnumProvident Finance Company, PLC
6.85% due 11/15/2015 (f)		125,000		119,814
W.R. Berkley Corp.
5.125% due 09/30/2010		54,000		54,351
5.60% due 05/15/2015		263,000		237,019
				5,072,984

The accompanying notes are an integral part of the financial statements.

215

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
International Oil - 0.24%
ConocoPhillips
4.60% due 01/15/2015	$	330,000	$	351,408
Newfield Exploration Company
6.625% due 04/15/2016		10,000		9,550
Pioneer Natural Resources Company
6.65% due 03/15/2017		85,000		77,918
6.875% due 05/01/2018		15,000		13,695
				452,571
Internet Service Provider - 0.00%
Terremark Worldwide, Inc.
12.00% due 06/15/2017 (f)		5,000		5,256
Leisure Time - 0.04%
AMC Entertainment, Inc.
8.75% due 06/01/2019		10,000		9,925
11.00% due 02/01/2016		15,000		15,525
Peninsula Gaming LLC
8.375% due 08/15/2015		5,000		4,900
10.75% due 08/15/2017		5,000		4,775
Royal Caribbean Cruises, Ltd.
11.875% due 07/15/2015		5,000		5,225
Scientific Games International, Inc., Series 144A
9.25% due 06/15/2019		5,000		5,125
Seneca Gaming Corp.
7.25% due 05/01/2012		10,000		9,400
Wynn Las Vegas LLC
6.625% due 12/01/2014		4,000		3,680
6.625% due 12/01/2014		5,000		4,587
Yonkers Racing Corp.
11.375% due 07/15/2016 (f)		5,000		5,088
				68,230
Liquor - 0.29%
Constellation Brands, Inc.
7.25% due 09/01/2016		10,000		9,675
Miller Brewing Company
5.50% due 08/15/2013 (f)		390,000		409,931
Molson Coors Capital Financial
4.85% due 09/22/2010		117,000		120,617
				540,223
Manufacturing - 0.46%
General Electric Company
5.25% due 12/06/2017		735,000		750,420
Sally Holdings LLC
9.25% due 11/15/2014		5,000		5,162
SPX Corp.
7.625% due 12/15/2014		10,000		10,038
Tyco International Group SA
6.75% due 02/15/2011		85,000		89,762
				855,382
Medical-Hospitals - 0.49%
Community Health Systems, Inc.
8.875% due 07/15/2015		10,000		10,038
HCA, Inc.
6.375% due 01/15/2015		20,000		17,500
7.875% due 02/01/2011		20,000		20,100
HCA, Inc., PIK
9.625% due 11/15/2016		21,000		21,210
Quest Diagnostics, Inc.
5.45% due 11/01/2015	$	275,000	$	284,631
6.95% due 07/01/2037		390,000		438,066
7.50% due 07/12/2011		100,000		107,100
Tenet Healthcare Corp.
8.875% due 07/01/2019 (f)		20,000		20,500
				919,145
Metal & Metal Products - 0.13%
Inco, Ltd.
5.70% due 10/15/2015		233,000		238,407
Mining - 0.36%
Corporacion Nacional Del Cobre de Chile -
CODELCO
6.375% due 11/30/2012 (f)		165,000		180,254
Freeport-McMoRan Copper & Gold, Inc.
8.25% due 04/01/2015		5,000		5,212
8.375% due 04/01/2017		25,000		26,063
Rio Tinto Finance USA, Ltd.
6.50% due 07/15/2018		425,000		457,531
				669,060
Office Furnishings & Supplies - 0.00%
ACCO Brands Corp.
7.625% due 08/15/2015		5,000		3,725
Paper - 0.15%
MeadWestvaco Corp.
7.375% due 09/01/2019		150,000		152,480
Temple-Inland, Inc.
6.875% due 01/15/2018		125,000		121,626
				274,106
Petroleum Services - 0.15%
Basic Energy Services, Inc.
11.625% due 08/01/2014 (f)		5,000		5,100
Halliburton Company
5.50% due 10/15/2010		192,000		200,118
Hornbeck Offshore Services, Inc.
8.00% due 09/01/2017 (f)		10,000		9,800
Petroleum Export, Ltd.
5.265% due 06/15/2011 (f)		62,913		60,610
Pride International, Inc.
7.375% due 07/15/2014		5,000		5,050
				280,678
Pharmaceuticals - 1.19%
AmerisourceBergen Corp.
5.875% due 09/15/2015		670,000		717,348
Elan Finance PLC
7.75% due 11/15/2011		40,000		38,800
Medco Health Solutions, Inc.
7.125% due 03/15/2018		135,000		152,227
Merck & Company, Inc.
4.00% due 06/30/2015		425,000		442,958
Novartis Securities Investment, Ltd.
5.125% due 02/10/2019		320,000		339,246
Omnicare, Inc.
6.75% due 12/15/2013		5,000		4,725
6.875% due 12/15/2015		5,000		4,675

The accompanying notes are an integral part of the financial statements.

216

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Pharmaceuticals (continued)
Pfizer, Inc.
6.20% due 03/15/2019	$	450,000	$	508,766
				2,208,745
Publishing - 0.02%
Scholastic Corp.
5.00% due 04/15/2013		35,000		29,575
Railroads & Equipment - 0.00%
American Railcar Industries, Inc.
7.50% due 03/01/2014		5,000		4,637
Real Estate - 2.67%
AMB Property LP
7.50% due 06/30/2018		106,000		98,760
AvalonBay Communities, Inc.
5.50% due 01/15/2012		150,000		155,698
Brandywine Operating Partnership
5.70% due 05/01/2017		335,000		280,540
Developers Diversified Realty Corp.
4.625% due 08/01/2010		55,000		53,155
5.00% due 05/03/2010		25,000		24,295
Duke Realty Corp. LP
5.25% due 01/15/2010		275,000		275,742
Equity One, Inc.
6.00% due 09/15/2017		235,000		205,840
Federal Realty Investment Trust, REIT
5.65% due 06/01/2016		55,000		49,844
HCP, Inc.
5.65% due 12/15/2013		200,000		192,688
Health Care Property, Inc.
5.95% due 09/15/2011		150,000		152,339
7.072 due 06/08/2015		67,000		67,307
Health Care Property, Inc., REIT
6.00% due 03/01/2015		175,000		167,442
Healthcare Realty Trust, Inc.
8.125% due 05/01/2011		377,000		394,993
Host Marriott LP
7.125% due 11/01/2013		10,000		9,675
Kimco Realty Corp.
5.584% due 11/23/2015		125,000		113,456
Liberty Property LP
6.625% due 10/01/2017		100,000		92,236
7.25% due 03/15/2011		195,000		203,111
Realty Income Corp.
6.75% due 08/15/2019		550,000		535,638
Regency Centers LP
7.95% due 01/15/2011		319,000		328,579
Simon Property Group LP, REIT
5.30% due 05/30/2013		450,000		457,539
6.10% due 05/01/2016		150,000		149,580
United Dominion Realty Trust, Inc.
6.05% due 06/01/2013		200,000		201,698
Ventas Realty LP, Series 1
6.50% due 06/01/2016		5,000		4,637
Ventas Realty LP/Ventas Capital Corp.
6.625% due 10/15/2014		95,000		91,675
7.125% due 06/01/2015		3,000		2,865
WEA Finance LLC
7.125% due 04/15/2018 (f)		250,000		256,828
7.50% due 06/02/2014 (f)	$	130,000	$	139,652
Westfield Group
5.40% due 10/01/2012 (f)		250,000		255,482
				4,961,294
Retail - 0.25%
Staples, Inc.
9.75% due 01/15/2014		395,000		463,685
Retail Grocery - 0.11%
Kroger Company
6.75% due 04/15/2012		179,000		196,337
SUPERVALU, Inc.
8.00% due 05/01/2016		10,000		9,838
				206,175
Retail Trade - 0.51%
CVS Pass-Through Trust
5.88% due 01/10/2028		332,948		307,977
6.943% due 01/10/2030		48,403		47,766
Dollar General Corp., PIK
11.875% due 07/15/2017		5,000		5,613
Federated Department Stores, Inc.
6.90% due 04/01/2029		156,000		117,881
HSN, Inc.
11.25% due 08/01/2016		5,000		5,200
Macys Retail Holdings, Inc.
5.875% due 01/15/2013		494,000		465,800
				950,237
Sanitary Services - 0.07%
Waste Management, Inc.
6.375% due 03/11/2015		125,000		135,977
Semiconductors - 0.00%
Sensata Technologies B.V.
8.00% due 05/01/2014 (f)		5,000		4,275
Software - 0.43%
Fiserv, Inc.
6.125% due 11/20/2012		200,000		217,224
Intuit, Inc.
5.40% due 03/15/2012		75,000		78,756
Oracle Corp.
6.125% due 07/08/2039		450,000		505,308
				801,288
Steel - 0.34%
ArcelorMittal
5.375% due 06/01/2013		150,000		151,174
6.125% due 06/01/2018		500,000		478,564
				629,738
Telecommunications Equipment &
Services - 0.58%
Bellsouth Corp.
4.75% due 11/15/2012		302,000		322,512
GCI, Inc.
7.25% due 02/15/2014		15,000		13,969
Intelsat Subsidiary Holding Company, Ltd.
8.875% due 01/15/2015 (f)		25,000		25,062

The accompanying notes are an integral part of the financial statements.

217

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment &
Services (continued)
SBC Communications, Inc.
5.625% due 06/15/2016	$	360,000	$	388,859
5.875% due 08/15/2012		150,000		164,058
Telefonica Europe BV
7.75% due 09/15/2010		150,000		159,047
				1,073,507
Telephone - 2.77%
Ameritech Capital Funding Corp.
6.45% due 01/15/2018		148,000		157,928
AT&T, Inc.
5.50% due 02/01/2018		180,000		188,996
6.30% due 01/15/2038		675,000		708,647
British Telecommunications PLC
5.15% due 01/15/2013		350,000		362,655
9.125% due 12/15/2010		156,000		168,073
France Telecom SA
4.375% due 07/08/2014		200,000		209,003
Qwest Corp.
7.50% due 10/01/2014		25,000		24,781
8.375% due 05/01/2016 (f)		135,000		136,350
Sprint Capital Corp.
8.375% due 03/15/2012		10,000		10,013
Sprint Nextel Corp.
6.00% due 12/01/2016		5,000		4,200
Telecom Italia Capital SA
5.25% due 11/15/2013		325,000		340,032
6.00% due 09/30/2034		146,000		139,026
6.20% due 07/18/2011		675,000		718,781
Telefonica Emisones SAU
7.045% due 06/20/2036		275,000		326,150
Verizon Communications, Inc.
5.55% due 02/15/2016		570,000		605,430
6.40% due 02/15/2038		365,000		394,569
6.90% due 04/15/2038		275,000		314,687
8.75% due 11/01/2021		285,000		350,510
				5,159,831
Tobacco - 1.01%
Alliance One International, Inc.
10.00% due 07/15/2016 (f)		10,000		9,875
Altria Group, Inc.
9.25% due 08/06/2019		125,000		150,865
9.70% due 11/10/2018		395,000		483,182
10.20% due 02/06/2039		200,000		267,950
Philip Morris International, Inc.
5.65% due 05/16/2018		800,000		850,774
Reynolds American, Inc.
7.25% due 06/01/2013		95,000		101,268
7.30% due 07/15/2015		6,000		6,163
				1,870,077
Utility Service - 0.07%
PacifiCorp
6.35% due 07/15/2038		110,000		127,258
TOTAL CORPORATE BONDS (Cost $86,488,010)			$	87,567,783
CONVERTIBLE BONDS - 0.00%
Pharmaceuticals - 0.00%
Amylin Pharmaceuticals, Inc.
3.00% due 06/15/2014	$	5,000	$	3,519
TOTAL CONVERTIBLE BONDS (Cost $3,140)			$	3,519
MUNICIPAL BONDS - 1.47%
California - 0.16%
University of California
5.77% due 05/15/2043		290,000		301,040
Florida - 0.09%
Miami Beach Florida Redevelopment Agency Tax
Increment Revenue
8.95% due 12/01/2022		135,000		156,912
Illinois - 0.25%
Illinois State Toll Highway Authority
6.184% due 01/01/2034		415,000		453,969
Indiana - 0.01%
Indiana Bond Bank Revenue
5.02% due 01/15/2016		15,000		15,933
Maryland - 0.02%
Maryland State Transportation Authority, Ltd.
5.84% due 07/01/2011		40,000		42,886
Missouri - 0.23%
Curators University Missouri System Facilities
Revenue
5.96% due 11/01/2039		400,000		430,156
New Jersey - 0.26%
Jersey City Municipal Utilities Authority
4.55% due 05/15/2012		20,000		19,331
New Jersey State Turnpike Authority
7.414% due 01/01/2040		380,000		466,104
				485,435
New York - 0.14%
Port Authority of New York & New Jersey
6.04% due 12/01/2029		180,000		196,873
Sales Tax Asset Receivable Corp., Series B
4.25% due 10/15/2011		65,000		68,091
				264,964
Texas - 0.31%
North Texas Tollway Authority
6.718% due 01/01/2049		535,000		573,092
TOTAL MUNICIPAL BONDS (Cost $2,510,541)			$	2,724,387
COLLATERALIZED MORTGAGE
OBLIGATIONS - 8.30%
American Tower Trust, Series 2007-1A, Class AFX
5.4197% due 04/15/2037 (f)		300,000		285,000
Banc of America Commercial Mortgage, Inc., Series 2006-2, Class A4
5.9286% due 05/10/2045 (b)		1,000,000		908,428
Banc of America Commercial Mortgage, Inc., Series 2002-PB2 Class A4
6.186% due 06/11/2035		405,797		424,928

The accompanying notes are an integral part of the financial statements.

218

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Bear Stearns Commercial Mortgage Securities, Inc., Series 2003-T12, Class A4
4.68% due 08/13/2039 (b)	$	405,797	$	406,400
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A
4.871% due 09/11/2042		560,000		521,740
Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-T20, Class A4A
5.2984% due 10/12/2042 (b)		575,000		571,110
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A4
5.694% due 06/11/2050		450,000		397,698
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A4
5.742% due 09/11/2042		145,000		134,308
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A4
5.322% due 12/11/2049		750,000		605,621
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.399% due 09/15/2020 (b)		500,000		483,687
Commercial Mortgage Asset Trust, Series 1999-C1, Class A3
6.64% due 01/17/2032		108,393		108,935
Commercial Mortgage Pass Through Certificates, Series 2005-C6, Class A5A
5.116% due 06/10/2044 (b)		500,000		482,670
Commercial Mortgage Pass Through Certificates, Series 2006-C7, Class A4
5.9608% due 06/10/2046 (b)		500,000		463,635
Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class A4
5.609% due 02/15/2039 (b)		1,000,000		934,949
Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A3
5.467% due 09/15/2039		1,000,000		761,493
Crown Castle Towers LLC, Series 2005-1A, Class B
4.878% due 06/15/2035 (f)		375,000		371,250
CS First Boston Mortgage Securities Corp, Series 2003-C3, Class A5
3.936% due 05/15/2038		500,000		492,326
General Electric Capital Assurance Company, Series 2003-1, Class A5
5.7426% due 05/12/2035 (b)(f)		89,275		82,895
Government National Mortgage Association, Series 2006-38, Class XS
6.9772% IO due 09/16/2035 (b)		63,265		7,336
GS Mortgage Securities Corp. II, Series 2006-GG6,Class A4
5.553% due 04/10/2038 (b)		1,000,000		878,392
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2004-CBX, Class A6
4.899% due 01/12/2037		315,000		292,398
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A4
6.0652% due 04/15/2045 (b)		1,645,000		1,437,491
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A4
4.918% due 10/15/2042 (b)		940,000		898,090
LB-UBS Commercial Mortgage Trust, Series 2001-C7, Class A3
5.642% due 12/15/2025		63,296		65,291
LB-UBS Commercial Mortgage Trust, Series 2006-C4, Class A4
6.0799% due 06/15/2038 (b)		500,000		467,277
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class A4
5.047% due 07/12/2038 (b)		500,000		483,151
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4
5.8397% due 05/12/2039 (b)		500,000		469,358
Morgan Stanley Capital I, Series 2007-HQ11, Class A4
5.447% due 02/12/2044 (b)		1,000,000		863,071
Morgan Stanley Capital I, Series 2008-T29, Class A4
6.4579% due 01/11/2043 (b)		140,000		123,791
Morgan Stanley Dean Witter Capital I, Series 2001, Class A4
6.39% due 06/15/2011		105,827		111,365
Morgan Stanley Dean Witter Capital I, Series 2002-TOP7, Class A2
5.98% due 01/15/2039		40,579		42,515
Nomura Asset Securities Corp., Series 1998-D6, Class A1B
6.59% due 03/15/2030		296		297
Prudential Commercial Mortgage Trust, Series 2003-PWR1, Class A1
3.669% due 02/11/2036		136,480		137,574
Prudential Commercial Mortgage Trust, Series 2003-PWR1, Class A2
4.493% due 02/11/2036		405,797		417,584
Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class A7
5.118% due 07/15/2042 (b)		310,000		297,689
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $16,475,296)			$	15,429,743
ASSET BACKED SECURITIES - 1.25%
AmeriCredit Automobile Receivables Trust, Series 2005-AX, Class A4
3.93% due 10/06/2011		214,480		215,075
Chase Issuance Trust, Series 2008-A4, Class A4
4.65% due 03/15/2015		345,000		367,351
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2
5.261% due 04/25/2037 (f)		300,000		244,024
Harley-Davidson Motorcycle Trust, Series 2005-1, Class A2
3.76% due 12/17/2012		125,298		126,052
Massachusetts RRB Special Purpose Trust, Series 1999-1, Class A5
7.03% due 03/15/2012		239,477		243,881
Massachusetts RRB Special Purpose Trust, Series 2001-1, Class A
6.53% due 06/01/2013		57,503		62,725
USAA Auto Owner Trust, Series 2005-4, Class A4
4.89% due 08/15/2012		343,527		347,919

The accompanying notes are an integral part of the financial statements.

219

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Investment Quality Bond Fund (continued)

	Shares or
	Principal
	Amount		Value
ASSET BACKED SECURITIES (continued)
Wachovia Auto Owner Trust, Series 2005-B, Class A5
4.93% due 11/20/2012	$	700,000	$	707,960
TOTAL ASSET BACKED SECURITIES (Cost $2,341,317)			$	2,314,987
COMMON STOCKS - 0.00%
Computers & Business Equipment - 0.00%
Unisys Corp. *		320		781
TOTAL COMMON STOCKS (Cost $396)			$	781
PREFERRED STOCKS - 0.01%
Financial Services - 0.01%
Wells Fargo & Company, Series K (k)		20,000		18,000
TOTAL PREFERRED STOCKS (Cost $16,314)			$	18,000
REPURCHASE AGREEMENTS - 8.66%
Bank of New York Tri-Party Repurchase Agreement dated 08/31/2009 at 0.21% to be repurchased at $15,700,092 on 09/01/2009, collateralized by $35,051,354 Federal Home Loan Mortgage Corp., 7.00% due 12/01/2038 (valued at $16,014,000, including interest)	$	15,700,000	$	15,700,000
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $413,001 on 09/01/2009,collateralized by $420,000 Federal Home Loan Mortgage Corp., 3.75% due 03/27/2019 (valued at $421,575, including interest)		413,000		413,000
TOTAL REPURCHASE AGREEMENTS (Cost $16,113,000)			$	16,113,000
Total Investments (Investment Quality Bond Fund) (Cost $180,331,112) - 99.09%			$	184,263,700
Other assets and liabilities, net - 0.91%				1,696,119
TOTAL NET ASSETS - 100.00%			$	185,959,819

Large Cap Fund

	Shares or
	Principal
	Amount		Value
COMMON STOCKS - 98.19%
Advertising - 2.17%
Interpublic Group of Companies, Inc. *		339,000	$	2,132,310
Omnicom Group, Inc.		76,850		2,791,192
				4,923,502
Aerospace - 1.88%
General Dynamics Corp.		72,000		4,261,680
Agriculture - 1.35%
Monsanto Company		36,600		3,070,008
Air Travel - 0.71%
Southwest Airlines Company		197,200	$	1,613,096
Auto Parts - 1.44%
BorgWarner, Inc.		54,538		1,618,143
Johnson Controls, Inc.		66,581		1,649,211
				3,267,354
Automobiles - 1.79%
PACCAR, Inc.		112,500		4,069,125
Banking - 3.54%
Bank of America Corp.		210,700		3,706,213
Bank of New York Mellon Corp.		110,268		3,265,035
City National Corp. (a)		27,200		1,074,400
				8,045,648
Biotechnology - 3.19%
Amgen, Inc. *		51,500		3,076,610
Genzyme Corp. *		50,302		2,802,324
Millipore Corp. *		20,700		1,370,961
				7,249,895
Cable & Television - 3.40%
Comcast Corp., Class A		340,600		5,217,992
Viacom, Inc., Class B *		100,600		2,519,024
				7,737,016
Coal - 1.48%
Peabody Energy Corp.		103,000		3,366,040
Computers & Business Equipment - 5.90%
Apple, Inc. *		34,800		5,853,708
Hewlett-Packard Company		104,800		4,704,472
Seagate Technology		206,700		2,862,795
				13,420,975
Cosmetics & Toiletries - 4.37%
Avon Products, Inc. (a)		84,800		2,702,576
Estee Lauder Companies, Inc., Class A		49,800		1,785,330
Procter & Gamble Company		100,500		5,438,055
				9,925,961
Crude Petroleum & Natural Gas - 4.56%
EOG Resources, Inc.		21,400		1,540,800
Hess Corp.		51,700		2,615,503
Marathon Oil Corp.		90,100		2,781,387
Ultra Petroleum Corp. *		73,700		3,421,891
				10,359,581
Electrical Utilities - 5.03%
American Electric Power Company, Inc.		119,443		3,754,094
Dynegy, Inc., Class A *		174,900		332,310
Exelon Corp.		96,413		4,822,578
FirstEnergy Corp.		39,500		1,782,635
Pepco Holdings, Inc.		50,981		730,558
				11,422,175
Energy - 0.40%
Sempra Energy		18,314		918,813
Financial Services - 7.15%
Discover Financial Services		177,056		2,434,520
JPMorgan Chase & Company		156,400		6,797,144

The accompanying notes are an integral part of the financial statements.

220

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Large Cap Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Morgan Stanley		92,413	$	2,676,280
Wells Fargo & Company		157,878		4,344,803
				16,252,747
Food & Beverages - 2.77%
PepsiCo, Inc.		82,900		4,697,943
Sysco Corp.		62,300		1,588,027
				6,285,970
Gas & Pipeline Utilities - 1.28%
Williams Companies, Inc.		176,600		2,903,304
Healthcare Products - 4.68%
Covidien PLC		146,700		5,804,919
Medtronic, Inc.		90,434		3,463,622
Zimmer Holdings, Inc. *		28,900		1,368,415
				10,636,956
Healthcare Services - 2.34%
DaVita, Inc. *		15,000		775,650
Medco Health Solutions, Inc. *		45,000		2,484,900
UnitedHealth Group, Inc.		73,900		2,069,200
				5,329,750
Household Products - 1.50%
Fortune Brands, Inc.		85,800		3,415,698
Industrial Machinery - 0.92%
Pall Corp.		70,700		2,101,911
Industrials - 1.35%
General Electric Company		221,400		3,077,460
Insurance - 3.38%
ACE, Ltd.		41,800		2,181,124
AFLAC, Inc.		55,300		2,246,286
Principal Financial Group, Inc.		115,000		3,266,000
				7,693,410
International Oil - 3.56%
Anadarko Petroleum Corp.		60,000		3,172,200
Chevron Corp.		70,500		4,930,770
				8,102,970
Leisure Time - 1.37%
Carnival Corp. *		106,699		3,120,946
Manufacturing - 1.85%
Illinois Tool Works, Inc.		100,448		4,200,735
Petroleum Services - 3.16%
Baker Hughes, Inc.		84,900		2,924,805
Halliburton Company		111,100		2,634,181
Noble Corp.		46,100		1,614,883
				7,173,869
Pharmaceuticals - 4.83%
Allergan, Inc.		51,026		2,853,374
Merck & Company, Inc. (a)		72,400		2,347,932
Pfizer, Inc.		345,600		5,771,520
				10,972,826
Railroads & Equipment - 1.14%
Burlington Northern Santa Fe Corp.		31,250		2,594,375
Semiconductors - 4.50%
Broadcom Corp., Class A *		111,100	$	3,160,795
Intersil Corp., Class A		82,900		1,226,920
KLA-Tencor Corp.		56,900		1,775,280
Marvell Technology Group, Ltd. *		190,300		2,902,075
National Semiconductor Corp.		76,900		1,166,573
				10,231,643
Software - 5.80%
Autodesk, Inc. *		71,800		1,682,274
Intuit, Inc. *		54,600		1,516,242
Microsoft Corp.		245,700		6,056,505
VMware, Inc., Class A *		111,155		3,938,222
				13,193,243
Telephone - 2.36%
AT&T, Inc.		135,100		3,519,355
Sprint Nextel Corp. *		502,527		1,839,249
				5,358,604
Trucking & Freight - 3.04%
FedEx Corp.		71,183		4,890,984
Ryder Systems, Inc.		52,900		2,010,200
				6,901,184
TOTAL COMMON STOCKS (Cost $213,032,438)			$	223,198,470
INVESTMENT COMPANIES - 0.50%
Investment Companies - 0.50%
SPDR Trust Series 1		11,000		1,128,050
TOTAL INVESTMENT COMPANIES (Cost $901,012)			$	1,128,050
SHORT TERM INVESTMENTS - 2.27%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		516,499	$	5,170,823
TOTAL SHORT TERM INVESTMENTS (Cost $5,169,106)			$	5,170,823
REPURCHASE AGREEMENTS - 1.28%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $2,905,006 on 09/01/2009, collateralized by $2,900,000 Federal National Mortgage Association, 5.13% due 12/18/2017 (valued at $2,965,250, including interest)	$	2,905,000	$	2,905,000
TOTAL REPURCHASE AGREEMENTS (Cost $2,905,000)			$	2,905,000
Total Investments (Large Cap Fund) (Cost $222,007,556) - 102.24%			$	232,402,343
Other assets and liabilities, net - (2.24)%				(5,091,082	)
TOTAL NET ASSETS - 100.00%			$	227,311,261

The accompanying notes are an integral part of the financial statements.

221

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Large Cap Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 99.49%
Aerospace - 3.29%
Alliant Techsystems, Inc. *		59,000	$	4,559,520
Northrop Grumman Corp.		145,000		7,077,450
Raytheon Company		114,000		5,378,520
				17,015,490
Agriculture - 1.17%
Archer-Daniels-Midland Company		210,000		6,054,300
Biotechnology - 2.34%
Amgen, Inc. *		202,000		12,067,480
Building Materials & Construction - 0.19%
KBR, Inc.		43,000		973,950
Business Services - 4.25%
Computer Sciences Corp. *		125,000		6,106,250
Manpower, Inc.		112,000		5,790,400
SAIC, Inc. *		300,000		5,547,000
URS Corp. *		104,000		4,495,920
				21,939,570
Chemicals - 0.47%
Lubrizol Corp.		38,000		2,421,360
Computers & Business Equipment - 2.95%
Ingram Micro, Inc., Class A *		278,000		4,659,280
Tech Data Corp. *		128,000		4,876,800
Western Digital Corp. *		166,000		5,690,480
				15,226,560
Construction & Mining Equipment - 2.23%
National Oilwell Varco, Inc. *		179,000		6,506,650
Rowan Companies, Inc.		243,000		5,032,530
				11,539,180
Containers & Glass - 2.24%
Ball Corp.		69,000		3,343,740
Bemis Company, Inc.		108,000		2,871,720
Pactiv Corp. *		216,000		5,367,600
				11,583,060
Crude Petroleum & Natural Gas - 2.36%
Marathon Oil Corp.		240,000		7,408,800
Patterson-UTI Energy, Inc.		362,000		4,810,980
				12,219,780
Domestic Oil - 1.87%
Frontier Oil Corp. (a)		371,000		4,759,930
Oil States International, Inc. *		166,000		4,892,020
				9,651,950
Electrical Equipment - 0.82%
General Cable Corp. *		55,000		1,940,400
Wesco International, Inc. *		96,000		2,306,880
				4,247,280
Electrical Utilities - 4.32%
AES Corp. *		383,000		5,235,610
CMS Energy Corp. (a)		402,000		5,390,820
Dynegy, Inc., Class A *		2,327,000		4,421,300
Edison International		63,000		2,104,830
Mirant Corp. *		306,000		5,156,100
				22,308,660
Electronics - 1.48%
L-3 Communications Holdings, Inc.		63,000	$	4,687,200
Thomas & Betts Corp. *		107,000		2,962,830
				7,650,030
Energy - 1.09%
NRG Energy, Inc. *		209,000		5,611,650
Financial Services - 3.83%
Broadridge Financial Solutions, Inc.		55,000		1,145,100
Goldman Sachs Group, Inc.		71,000		11,747,660
JPMorgan Chase & Company		132,000		5,736,720
Wells Fargo & Company		43,000		1,183,360
				19,812,840
Food & Beverages - 1.73%
Coca-Cola Enterprises, Inc.		280,000		5,658,800
Del Monte Foods Company		314,000		3,293,860
				8,952,660
Gas & Pipeline Utilities - 3.09%
El Paso Corp.		569,000		5,251,870
NiSource, Inc.		424,000		5,601,040
Southern Union Company		74,000		1,468,160
UGI Corp.		143,000		3,647,930
				15,969,000
Healthcare Services - 6.78%
Coventry Health Care, Inc. *		129,000		2,816,070
Health Net, Inc. *		40,000		612,800
IMS Health, Inc.		251,000		3,478,860
Lincare Holdings, Inc. *		164,000		4,327,960
Omnicare, Inc.		139,000		3,181,710
Quest Diagnostics, Inc.		81,000		4,370,760
UnitedHealth Group, Inc.		305,000		8,540,000
WellPoint, Inc. *		146,000		7,716,100
				35,044,260
Industrials - 1.30%
General Electric Company		307,000		4,267,300
Harsco Corp.		60,000		1,871,400
Shaw Group, Inc. *		19,000		557,270
				6,695,970
Insurance - 10.42%
Allied World Assurance Holdings, Ltd.		100,000		4,633,000
American Financial Group, Inc.		222,000		5,694,300
Axis Capital Holdings, Ltd.		72,000		2,194,560
Chubb Corp.		151,000		7,457,890
Endurance Specialty Holdings, Ltd.		90,000		3,102,300
HCC Insurance Holdings, Inc.		219,000		5,790,360
PartnerRe, Ltd.		75,000		5,543,250
RenaissanceRe Holdings, Ltd.		85,000		4,628,250
The Travelers Companies, Inc.		158,000		7,966,360
Unum Group		303,000		6,826,590
				53,836,860
International Oil - 10.13%
Anadarko Petroleum Corp.		163,000		8,617,810
Chevron Corp.		59,000		4,126,460
ConocoPhillips Company		273,000		12,293,190
Exxon Mobil Corp.		224,000		15,489,599

The accompanying notes are an integral part of the financial statements.

222

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Large Cap Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
International Oil (continued)
Murphy Oil Corp.		107,000	$	6,099,000
Nabors Industries, Ltd. *		323,000		5,710,640
				52,336,699
Medical-Hospitals - 1.80%
Community Health Systems, Inc. *		189,000		5,815,530
LifePoint Hospitals, Inc. *		139,000		3,493,070
				9,308,600
Metal & Metal Products - 0.38%
Timken Company		92,000		1,942,120
Petroleum Services - 5.97%
ENSCO International, Inc. (a)		106,000		3,911,400
Pride International, Inc. *		222,000		5,723,160
SEACOR Holdings, Inc. *		44,000		3,349,720
Seahawk Drilling, Inc. *		13,400		298,686
Tesoro Corp. (a)		403,000		5,674,240
Tidewater, Inc.		127,000		5,482,590
Valero Energy Corp.		342,000		6,409,080
				30,848,876
Pharmaceuticals - 7.00%
AmerisourceBergen Corp.		254,000		5,412,740
Endo Pharmaceutical Holdings, Inc. * (a)		250,000		5,642,500
Forest Laboratories, Inc. *		207,000		6,058,890
Pfizer, Inc.		75,000		1,252,500
Schering-Plough Corp.		201,000		5,664,180
Watson Pharmaceuticals, Inc. *		148,000		5,222,920
Wyeth		145,000		6,938,250
				36,191,980
Retail - 1.40%
Barnes & Noble, Inc. (a)		194,000		4,013,860
Foot Locker, Inc.		302,000		3,219,320
				7,233,180
Retail Trade - 3.69%
BJ’s Wholesale Club, Inc. * (a)		81,000		2,640,600
Limited Brands, Inc.		350,000		5,222,000
RadioShack Corp.		354,000		5,356,020
The Gap, Inc.		299,000		5,875,350
				19,093,970
Semiconductors - 0.43%
Novellus Systems, Inc. *		116,000		2,222,560
Software - 1.17%
CA, Inc.		230,000		5,126,700
Teradata Corp. *		34,000		915,620
				6,042,320
Telephone - 6.84%
AT&T, Inc.		358,000		9,325,900
CenturyTel, Inc.		194,000		6,252,620
Qwest Communications International, Inc. (a)		1,549,000		5,560,910
Verizon Communications, Inc.		457,000		14,185,280
				35,324,710
Tobacco - 1.80%
Lorillard, Inc.		73,000		5,312,210
Reynolds American, Inc.		87,000	$	3,976,770
				9,288,980
Trucking & Freight - 0.66%
Oshkosh Corp.		102,000		3,427,200
TOTAL COMMON STOCKS (Cost $493,457,844)			$	514,083,085
SHORT TERM INVESTMENTS - 5.06%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		2,614,252	$	26,172,066
TOTAL SHORT TERM INVESTMENTS (Cost $26,161,644)			$	26,172,066
REPURCHASE AGREEMENTS - 0.27%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,396,003 on 09/01/2009, collateralized by $1,355,000 Federal National Mortgage Association, 3.625% due 02/12/2013 (valued at $1,427,831, including interest)	$	1,396,000	$	1,396,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,396,000)			$	1,396,000
Total Investments (Large Cap Value Fund) (Cost $521,015,488) - 104.82%			$	541,651,151
Other assets and liabilities, net - (4.82)%				(24,917,180	)
TOTAL NET ASSETS - 100.00%			$	516,733,971

Mid Cap Index Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 97.28%
Advertising - 0.32%
Lamar Advertising Company, Class A * (a)		46,272	$	1,059,166
ValueClick, Inc. *		52,883		542,051
				1,601,217
Aerospace - 0.65%
Alliant Techsystems, Inc. *		19,936		1,540,654
BE Aerospace, Inc. *		61,435		1,052,382
Woodward Governor Company		33,409		701,255
				3,294,291
Air Travel - 0.35%
Airtran Holdings, Inc. * (a)		72,931		484,991
Alaska Air Group, Inc. *		22,126		558,239
JetBlue Airways Corp. * (a)		123,744		718,953
				1,762,183
Apparel & Textiles - 1.44%
Guess?, Inc.		35,796		1,254,292
Hanesbrands, Inc. *		57,585		1,212,740
Mohawk Industries, Inc. *		34,130		1,710,596

The accompanying notes are an integral part of the financial statements.

223

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Apparel & Textiles (continued)
Phillips-Van Heusen Corp.		31,311	$	1,182,929
Timberland Company, Class A *		27,651		358,357
Under Armour, Inc., Class A * (a)		22,310		532,540
Warnaco Group, Inc. *		27,842		1,059,388
				7,310,842
Auto Parts - 1.47%
Advance Auto Parts, Inc.		57,767		2,443,544
BorgWarner, Inc. (a)		70,857		2,102,327
Federal Signal Corp.		29,611		211,719
Gentex Corp.		83,716		1,221,416
LKQ Corp. *		85,253		1,479,992
				7,458,998
Auto Services - 0.27%
Copart, Inc. *		38,876		1,373,878
Banking - 3.96%
Associated Banc Corp. (a)		77,750		806,267
Astoria Financial Corp.		49,576		510,633
BancorpSouth, Inc. (a)		44,084		1,013,932
Bank of Hawaii Corp.		29,073		1,146,930
Cathay General Bancorp (a)		30,122		278,327
City National Corp. (a)		26,072		1,029,844
Commerce Bancshares, Inc.		40,383		1,483,268
Cullen Frost Bankers, Inc.		36,142		1,781,078
First Niagara Financial Group, Inc.		91,063		1,191,104
FirstMerit Corp.		50,178		901,696
International Bancshares Corp. (a)		30,870		476,633
New York Community Bancorp, Inc. (a)		209,911		2,233,453
NewAlliance Bancshares, Inc.		64,937		763,659
PacWest Bancorp		14,924		294,152
SVB Financial Group * (a)		20,053		797,107
TCF Financial Corp.		68,550		943,248
Trustmark Corp. (a)		29,656		564,354
Valley National Bancorp (a)		86,222		1,005,349
Washington Federal, Inc.		53,540		794,534
Webster Financial Corp.		38,990		509,599
WestAmerica Bancorp		17,750		912,882
Wilmington Trust Corp.		42,143		591,266
				20,029,315
Biotechnology - 0.97%
Affymetrix, Inc. *		42,987		331,860
Bio-Rad Laboratories, Inc., Class A *		11,650		1,004,929
Charles River Laboratories International, Inc. *		40,193		1,386,256
Immucor, Inc. *		42,831		774,813
Techne Corp.		22,646		1,396,579
				4,894,437
Building Materials & Construction - 1.07%
Dycom Industries, Inc. *		23,714		266,071
Granite Construction, Inc. (a)		20,225		649,223
KBR, Inc.		97,576		2,210,096
Lennox International, Inc.		28,641		1,027,639
RPM International, Inc.		78,089		1,271,289
				5,424,318
Business Services - 5.24%
Acxiom Corp. *		41,609		379,474
Alliance Data Systems Corp. * (a)		35,315	$	1,962,101
Brinks Company		24,617		648,658
Cadence Design Systems, Inc. *		160,234		1,004,667
Corporate Executive Board Company		20,725		498,436
Deluxe Corp.		31,077		519,297
DST Systems, Inc. *		24,789		1,135,584
FactSet Research Systems, Inc. (a)		25,397		1,397,851
Fair Isaac Corp.		29,706		662,444
FTI Consulting, Inc. *		31,216		1,359,145
Gartner Group, Inc., Class A *		36,140		602,092
Global Payments, Inc.		48,885		2,074,679
Harte-Hanks, Inc.		23,191		302,411
Hewitt Associates, Inc., Class A *		50,743		1,827,763
Informatica Corp. *		54,600		978,978
Kelly Services, Inc., Class A		16,718		191,923
Korn/Ferry International *		27,195		376,107
Manpower, Inc.		47,636		2,462,781
MPS Group, Inc. *		56,229		554,418
Navigant Consulting Company *		29,310		369,013
Rollins, Inc.		24,901		444,483
SAIC, Inc. *		123,970		2,292,205
Sotheby’s (a)		40,732		646,010
SRA International, Inc., Class A *		25,650		509,665
URS Corp. *		50,591		2,187,049
Watson Wyatt Worldwide, Inc., Class A		25,924		1,132,879
				26,520,113
Cellular Communications - 0.58%
RF Micro Devices, Inc. *		161,639		759,703
Syniverse Holdings, Inc. *		31,634		565,300
Telephone & Data Systems, Inc.		61,153		1,612,605
				2,937,608
Chemicals - 3.26%
Airgas, Inc.		49,657		2,309,051
Albemarle Corp.		55,606		1,792,181
Ashland, Inc.		40,585		1,488,658
Cabot Corp.		39,768		787,009
Cytec Industries, Inc.		28,700		829,143
Lubrizol Corp.		41,009		2,613,093
Minerals Technologies, Inc.		11,386		510,548
Olin Corp.		47,382		793,175
Sensient Technologies Corp.		29,621		772,219
Terra Industries, Inc.		60,626		1,886,075
The Scotts Miracle-Gro Company, Class A		26,756		1,088,702
Valspar Corp.		60,966		1,632,669
				16,502,523
Coal - 0.42%
Arch Coal, Inc.		98,928		1,713,433
Patriot Coal Corp. * (a)		44,925		398,035
				2,111,468
Colleges & Universities - 0.41%
Career Education Corp. *		44,906		1,066,517
Corinthian Colleges, Inc. *		52,905		1,014,189
				2,080,706

The accompanying notes are an integral part of the financial statements.

224

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Commercial Services - 0.22%
Brink’s Home Security Holdings, Inc. *		24,770	$	774,558
United Rentals, Inc. *		36,561		335,996
				1,110,554
Computers & Business Equipment - 2.76%
3Com Corp. *		235,612		1,024,912
Avocent Corp. *		26,940		439,661
Diebold, Inc.		40,284		1,215,368
Ingram Micro, Inc., Class A *		98,434		1,649,754
Jack Henry & Associates, Inc.		50,953		1,187,715
Metavante Technologies, Inc. *		54,761		1,725,519
MICROS Systems, Inc. *		48,890		1,362,564
National Instruments Corp.		34,029		872,163
NCR Corp. *		96,441		1,285,559
Palm, Inc. * (a)		83,818		1,117,294
Parametric Technology Corp. *		70,461		937,131
Tech Data Corp. *		30,544		1,163,726
				13,981,366
Construction & Mining Equipment - 0.75%
Bucyrus International, Inc., Class A		45,690		1,363,847
Joy Global, Inc.		62,152		2,414,605
				3,778,452
Construction Materials - 0.55%
Louisiana-Pacific Corp. *		55,509		417,983
Martin Marietta Materials, Inc. (a)		27,071		2,370,878
				2,788,861
Containers & Glass - 0.77%
Greif, Inc., Class A		20,819		1,031,373
Packaging Corp. of America		62,311		1,268,652
Sonoco Products Company		60,683		1,574,117
				3,874,142
Correctional Facilities - 0.27%
Corrections Corp. of America *		70,028		1,389,356
Cosmetics & Toiletries - 0.27%
Alberto-Culver Company		51,914		1,370,010
Crude Petroleum & Natural Gas - 2.39%
Bill Barrett Corp. *		22,661		662,608
Cimarex Energy Company		50,650		1,977,376
Forest Oil Corp. *		67,731		1,064,731
Newfield Exploration Company *		80,641		3,120,000
Patterson-UTI Energy, Inc.		93,263		1,239,465
Plains Exploration & Production Company *		83,144		2,182,530
Quicksilver Resources, Inc. * (a)		68,861		745,076
Unit Corp. *		28,906		1,081,374
				12,073,160
Domestic Oil - 0.88%
Comstock Resources, Inc. *		28,250		998,073
Encore Aquisition Company *		32,090		1,209,472
Frontier Oil Corp.		63,707		817,361
Helix Energy Solutions Group, Inc. *		59,823		699,929
Mariner Energy, Inc. *		61,011		740,063
				4,464,898
Educational Services - 0.75%
ITT Educational Services, Inc. *		18,877	$	1,981,896
Strayer Education, Inc. (a)		8,522		1,798,994
				3,780,890
Electrical Equipment - 0.84%
AMETEK, Inc.		65,321		2,056,305
Hubbell, Inc., Class B		34,289		1,319,098
Varian, Inc. *		17,528		897,784
				4,273,187
Electrical Utilities - 3.12%
Alliant Energy Corp.		67,276		1,772,050
Black Hills Corp.		23,592		603,483
Cleco Corp.		36,730		896,946
DPL, Inc. (a)		70,514		1,746,632
Great Plains Energy, Inc.		82,119		1,438,725
Hawaiian Electric Industries, Inc. (a)		55,659		968,466
IDACORP, Inc.		28,668		816,465
NSTAR		64,947		2,054,923
NV Energy, Inc.		142,531		1,718,924
OGE Energy Corp.		58,397		1,826,658
PNM Resources, Inc.		52,672		615,209
Westar Energy, Inc.		66,080		1,355,962
				15,814,443
Electronics - 2.76%
Arrow Electronics, Inc. *		72,716		2,009,870
Avnet, Inc. *		91,853		2,447,882
Imation Corp.		18,429		158,489
Itron, Inc. * (a)		24,288		1,330,740
Mentor Graphics Corp. *		57,262		505,624
Synopsys, Inc. *		87,637		1,860,534
Teleflex, Inc.		24,170		1,094,901
Thomas & Betts Corp. *		32,116		889,292
Trimble Navigation, Ltd. * (a)		72,679		1,850,407
Vishay Intertechnology, Inc. *		113,444		915,493
Zebra Technologies Corp., Class A *		36,120		902,639
				13,965,871
Energy - 0.79%
Energen Corp.		43,601		1,830,806
MDU Resources Group, Inc.		111,862		2,171,241
				4,002,047
Financial Services - 3.91%
Affiliated Managers Group, Inc. * (a)		25,095		1,639,456
AmeriCredit Corp. * (a)		80,765		1,394,004
Apollo Investment Corp.		86,480		800,805
Broadridge Financial Solutions, Inc.		85,299		1,775,925
Eaton Vance Corp.		71,086		2,030,927
Fidelity National Financial, Inc., Class A		142,789		2,144,691
Fulton Financial Corp.		106,777		783,743
GATX Corp.		28,701		787,268
Jefferies Group, Inc. * (a)		76,983		1,821,418
Lender Processing Services, Inc.		51,132		1,752,805
Raymond James Financial, Inc. (a)		59,867		1,361,974
SEI Investments Company		81,253		1,498,305
Synovus Financial Corp. (a)		170,765		631,831

The accompanying notes are an integral part of the financial statements.

225

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Waddell & Reed Financial, Inc., Class A (a)		52,330	$	1,388,315
				19,811,467
Food & Beverages - 1.64%
Corn Products International, Inc.		45,351		1,345,111
Flowers Foods, Inc.		47,749		1,134,994
Hansen Natural Corp. *		44,061		1,439,032
PepsiAmericas, Inc.		34,060		952,999
Ralcorp Holdings, Inc. *		34,399		2,157,849
Smithfield Foods, Inc. * (a)		72,253		886,544
Tootsie Roll Industries, Inc. (a)		16,132		381,522
				8,298,051
Forest Products - 0.41%
Rayonier, Inc.		48,033		2,063,017
Funeral Services - 0.21%
Service Corp. International		152,592		1,080,351
Gas & Pipeline Utilities - 2.22%
AGL Resources, Inc.		46,926		1,576,244
National Fuel Gas Company		48,352		2,160,851
ONEOK, Inc.		64,031		2,169,370
Southern Union Company		75,430		1,496,531
UGI Corp.		65,835		1,679,451
Vectren Corp.		49,279		1,140,809
WGL Holdings, Inc.		30,490		1,006,170
				11,229,426
Healthcare Products - 4.00%
Beckman Coulter, Inc.		39,456		2,671,960
Edwards Lifesciences Corp. *		34,055		2,107,323
Gen-Probe, Inc. *		31,665		1,220,686
Henry Schein, Inc. *		54,833		2,905,052
Hologic, Inc. *		155,998		2,566,167
IDEXX Laboratories, Inc. * (a)		35,884		1,821,472
Kinetic Concepts, Inc. * (a)		33,571		1,072,594
Masimo Corp. *		29,374		737,875
Owens & Minor, Inc.		25,326		1,120,676
ResMed, Inc. *		45,825		2,103,826
STERIS Corp.		35,547		1,031,574
Thoratec Corp. *		34,335		900,950
				20,260,155
Healthcare Services - 2.11%
Cerner Corp. * (a)		41,141		2,538,811
Covance, Inc. *		38,868		2,063,891
Health Net, Inc. *		63,151		967,473
Hill-Rom Holdings, Inc.		38,054		779,726
Kindred Healthcare, Inc. *		18,263		260,796
Lincare Holdings, Inc. *		41,827		1,103,815
Omnicare, Inc.		63,378		1,450,722
Psychiatric Solutions, Inc. *		34,195		916,084
WellCare Health Plans, Inc. *		25,674		623,108
				10,704,426
Homebuilders - 1.11%
M.D.C. Holdings, Inc.		22,477		841,988
NVR, Inc. *		3,518		2,375,530
Ryland Group, Inc.		26,174		599,908
Toll Brothers, Inc. *		80,311	$	1,826,272
				5,643,698
Hotels & Restaurants - 1.25%
Bob Evans Farms, Inc.		18,666		501,555
Boyd Gaming Corp. *		34,027		349,798
Brinker International, Inc.		62,098		904,147
Chipotle Mexican Grill, Inc., Class A * (a)		19,367		1,624,504
Panera Bread Company, Class A *		18,919		987,761
The Cheesecake Factory, Inc. *		36,536		671,166
Wendy’s/Arby’s Group, Inc.		254,158		1,280,956
				6,319,887
Household Products - 1.34%
Blyth, Inc.		3,677		167,304
Church & Dwight, Inc.		42,700		2,439,451
Energizer Holdings, Inc. * (a)		42,130		2,756,566
Tupperware Brands Corp.		38,077		1,408,468
				6,771,789
Industrial Machinery - 2.10%
AGCO Corp. *		56,206		1,755,875
Crane Company		28,783		675,537
Donaldson Company, Inc.		46,928		1,763,085
Graco, Inc.		36,416		914,406
IDEX Corp.		49,067		1,297,331
Kennametal, Inc.		48,757		1,075,092
Lincoln Electric Holdings, Inc.		25,852		1,176,783
Terex Corp. * (a)		65,460		1,078,781
Valmont Industries, Inc.		10,685		879,696
				10,616,586
Industrials - 1.04%
Aecom Technology Corp. *		55,748		1,528,053
Clean Harbors, Inc. *		12,057		711,604
Harsco Corp.		48,824		1,522,820
Shaw Group, Inc. *		50,809		1,490,228
				5,252,705
Insurance - 4.29%
American Financial Group, Inc.		45,745		1,173,359
Arthur J. Gallagher & Company		60,929		1,448,282
Brown & Brown, Inc.		70,574		1,402,305
Everest Re Group, Ltd.		37,411		3,154,121
First American Corp.		56,688		1,786,806
Hanover Insurance Group, Inc.		31,092		1,271,352
HCC Insurance Holdings, Inc.		68,226		1,803,896
Horace Mann Educators Corp.		23,818		291,771
Mercury General Corp.		21,647		804,186
Old Republic International Corp.		146,274		1,742,123
Protective Life Corp.		52,038		1,121,419
Reinsurance Group of America, Inc.		44,246		1,904,790
Stancorp Financial Group, Inc.		29,809		1,128,271
Unitrin, Inc.		29,995		567,805
W.R. Berkley Corp.		83,661		2,137,539
				21,738,025
Internet Retail - 0.99%
Netflix, Inc. * (a)		24,910		1,087,571

The accompanying notes are an integral part of the financial statements.

226

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Internet Retail (continued)
Priceline.com, Inc. * (a)		25,330	$	3,900,313
				4,987,884
Internet Service Provider - 0.38%
Equinix, Inc. * (a)		22,967		1,935,199
Internet Software - 0.49%
Digital River, Inc. *		23,214		819,918
F5 Networks, Inc. *		47,767		1,647,484
				2,467,402
Leisure Time - 0.95%
Callaway Golf Company (a)		39,197		277,123
DreamWorks Animation SKG, Inc., Class A *		45,335		1,530,510
International Speedway Corp., Class A		16,883		469,516
Life Time Fitness, Inc. *		21,548		670,574
Scientific Games Corp., Class A *		39,351		606,792
WMS Industries, Inc. *		29,725		1,258,259
				4,812,774
Life Sciences - 0.28%
Pharmaceutical Product Development, Inc.		71,697		1,441,827
Manufacturing - 2.63%
AptarGroup, Inc.		41,189		1,416,078
Carlisle Companies, Inc.		37,246		1,228,746
Lancaster Colony Corp.		12,078		607,040
Mettler-Toledo International, Inc. * (a)		20,473		1,789,340
Mine Safety Appliances Company		18,138		484,829
Nordson Corp.		20,426		1,094,425
Pentair, Inc.		59,762		1,693,057
Roper Industries, Inc.		55,058		2,608,648
SPX Corp.		29,797		1,659,097
Trinity Industries, Inc.		47,791		755,098
				13,336,358
Medical-Hospitals - 1.31%
Community Health Systems, Inc. * (a)		56,234		1,730,320
Health Management Associates, Inc., Class A *		149,959		1,036,217
LifePoint Hospitals, Inc. * (a)		33,050		830,547
Universal Health Services, Inc., Class B		29,857		1,754,397
VCA Antech, Inc. *		51,511		1,274,897
				6,626,378
Metal & Metal Products - 0.86%
Commercial Metals Company		68,417		1,158,300
Matthews International Corp., Class A		18,506		644,749
Reliance Steel & Aluminum Company		38,798		1,433,198
Timken Company		51,796		1,093,414
				4,329,661
Mining - 0.40%
Cliffs Natural Resources, Inc.		79,643		2,015,764
Mobile Homes - 0.11%
Thor Industries, Inc.		21,576		562,055
Office Furnishings & Supplies - 0.22%
Herman Miller, Inc.		32,706		530,491
HNI Corp. (a)		27,291		586,211
				1,116,702
Paper - 0.36%
Potlatch Corp.		24,167	$	703,260
Temple-Inland, Inc.		64,763		1,095,142
				1,798,402
Petroleum Services - 1.91%
Exterran Holdings, Inc. * (a)		37,970		684,599
Helmerich & Payne, Inc. (a)		64,117		2,145,355
Oceaneering International, Inc. *		33,270		1,735,696
Pride International, Inc. *		105,549		2,721,053
Seahawk Drilling, Inc. *		7,037		156,846
Superior Energy Services, Inc. *		47,519		866,272
Tidewater, Inc. (a)		31,437		1,357,135
				9,666,956
Pharmaceuticals - 2.48%
Endo Pharmaceutical Holdings, Inc. *		71,239		1,607,864
Medicis Pharmaceutical Corp., Class A		34,551		638,157
OSI Pharmaceuticals, Inc. *		35,245		1,177,888
Perrigo Company (a)		47,213		1,393,728
Sepracor, Inc. *		66,465		1,206,340
United Therapeutics Corp. *		14,155		1,295,324
Valeant Pharmaceuticals International *		49,976		1,293,879
Vertex Pharmaceuticals, Inc. *		105,273		3,938,262
				12,551,442
Publishing - 0.30%
American Greetings Corp., Class A		23,968		332,916
John Wiley & Sons, Inc., Class A		25,850		829,009
Scholastic Corp.		15,491		377,361
				1,539,286
Railroads & Equipment - 0.48%
Kansas City Southern * (a)		55,687		1,330,919
Wabtec Corp.		29,044		1,087,698
				2,418,617
Real Estate - 6.22%
Alexandria Real Estate Equities, Inc., REIT (a)		23,941		1,333,753
AMB Property Corp., REIT		88,911		2,029,838
BRE Properties, Inc., Class A, REIT		31,159		880,865
Camden Property Trust, REIT		38,980		1,430,566
Corporate Office Properties Trust, REIT		34,887		1,285,935
Cousins Properties, Inc., REIT (a)		27,016		223,963
Duke Realty Corp., REIT		136,104		1,567,918
Equity One, Inc., REIT (a)		22,565		355,399
Essex Property Trust, Inc., REIT		16,694		1,245,539
Federal Realty Investment Trust, REIT		35,941		2,241,640
Highwoods Properties, Inc., REIT		43,074		1,265,083
Hospitality Properties Trust, REIT		67,797		1,235,261
Jones Lang LaSalle, Inc.		25,086		1,176,032
Liberty Property Trust, REIT		64,191		2,103,539
Mack-Cali Realty Corp., REIT		47,570		1,523,667
Nationwide Health Properties, Inc., REIT		62,385		1,988,834
OMEGA Healthcare Investors, Inc., REIT		50,110		847,360
Realty Income Corp., REIT (a)		63,434		1,620,739
Regency Centers Corp., REIT (a)		48,659		1,632,509
SL Green Realty Corp., REIT (a)		46,711		1,648,431
The Macerich Company, REIT (a)		48,119		1,379,091
UDR, Inc., REIT (a)		91,491		1,170,170

The accompanying notes are an integral part of the financial statements.

227

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (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 (a)		64,729	$	1,285,518
				31,471,650
Retail - 1.45%
AnnTaylor Stores Corp. *		35,608		501,361
Barnes & Noble, Inc. (a)		22,438		464,242
Chico’s FAS, Inc. *		107,795		1,372,230
Coldwater Creek, Inc. *		28,883		214,889
Collective Brands, Inc. *		38,971		617,301
Foot Locker, Inc.		94,219		1,004,374
J. Crew Group, Inc. * (a)		31,565		1,076,051
Regis Corp. (a)		33,666		544,716
Saks, Inc. * (a)		87,791		535,525
Williams-Sonoma, Inc. (a)		52,697		1,008,094
				7,338,783
Retail Grocery - 0.13%
Ruddick Corp.		23,896		634,678
Retail Trade - 4.51%
99 Cents Only Stores *		28,498		386,718
Aaron, Inc., Class B		32,628		851,591
Aeropostale, Inc. *		40,742		1,595,049
American Eagle Outfitters, Inc.		125,494		1,694,169
BJ’s Wholesale Club, Inc. * (a)		33,751		1,100,282
CarMax, Inc. * (a)		134,015		2,319,800
Dick’s Sporting Goods, Inc. *		51,957		1,164,356
Dollar Tree, Inc. *		54,664		2,729,920
Fossil, Inc. *		27,144		688,915
MSC Industrial Direct Company, Inc., Class A (a)		27,278		1,077,754
NBTY, Inc. *		33,478		1,240,695
PetSmart, Inc.		76,637		1,602,480
Rent-A-Center, Inc. *		40,148		792,120
Ross Stores, Inc.		77,076		3,594,824
Urban Outfitters, Inc. *		69,528		1,976,681
				22,815,354
Sanitary Services - 0.54%
Aqua America, Inc. (a)		82,485		1,389,872
Waste Connections, Inc. *		48,687		1,331,590
				2,721,462
Semiconductors - 2.42%
Atmel Corp. *		274,124		1,132,132
Cree, Inc. * (a)		54,081		1,992,344
Fairchild Semiconductor International, Inc. *		75,301		757,528
Integrated Device Technology, Inc. *		100,516		686,524
International Rectifier Corp. *		43,640		819,123
Intersil Corp., Class A		74,320		1,099,936
Lam Research Corp. *		76,858		2,359,541
Rovi Corp. *		49,813		1,516,308
Semtech Corp. *		37,108		677,963
Silicon Laboratories, Inc. *		27,173		1,223,872
				12,265,271
Software - 1.10%
ACI Worldwide, Inc. * (a)		21,299		288,814
Advent Software, Inc. * (a)		9,509		367,903
ANSYS, Inc. *		53,293		1,872,716
ManTech International Corp. *		12,770		674,767
Quest Software, Inc. *		37,350	$	615,902
Sybase, Inc. *		50,563		1,762,121
				5,582,223
Steel - 0.58%
Carpenter Technology Corp.		26,787		570,831
Steel Dynamics, Inc.		113,755		1,882,645
Worthington Industries, Inc.		36,483		480,481
				2,933,957
Telecommunications Equipment &
Services - 1.12%
ADC Telecommunications, Inc. *		58,747		499,937
ADTRAN, Inc.		33,370		758,834
CommScope, Inc. *		55,808		1,504,583
NeuStar, Inc., Class A *		43,951		1,018,784
Plantronics, Inc.		29,730		710,250
Polycom, Inc. *		50,976		1,202,524
				5,694,912
Telephone - 0.09%
Cincinnati Bell, Inc. *		130,641		435,035
Tobacco - 0.11%
Universal Corp.		15,201		560,613
Toys, Amusements & Sporting Goods - 0.28%
Marvel Entertainment, Inc. *		29,579		1,430,736
Transportation - 0.48%
Alexander & Baldwin, Inc.		24,944		715,893
Con-way, Inc.		28,158		1,175,878
Overseas Shipholding Group, Inc. (a)		14,537		514,174
				2,405,945
Trucking & Freight - 0.94%
J.B. Hunt Transport Services, Inc.		49,839		1,396,987
Landstar Systems, Inc.		31,216		1,088,502
Oshkosh Corp.		53,568		1,799,885
Werner Enterprises, Inc.		26,114		456,473
				4,741,847
TOTAL COMMON STOCKS (Cost $502,416,755)			$	492,397,890
SHORT TERM INVESTMENTS - 15.06%
Federal Home Loan Bank Discount Notes
0.08% due 09/01/2009	$	7,000,000	$	7,000,000
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		6,914,930		69,227,435
TOTAL SHORT TERM INVESTMENTS (Cost $76,178,500)			$	76,227,435

The accompanying notes are an integral part of the financial statements.

228

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Index Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 0.34%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,705,003 on 09/01/2009, collateralized by $1,630,000 Federal Home Loan Bank, 5.50% due 07/15/2037 (valued at $1,742,063, including interest)	$	1,705,000	$	1,705,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,705,000)			$	1,705,000
Total Investments (Mid Cap Index Fund) (Cost $580,300,255) - 112.68%			$	570,330,325
Other assets and liabilities, net - (12.68)%				(64,194,602	)
TOTAL NET ASSETS - 100.00%			$	506,135,723

Mid Cap Stock Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 97.98%
Aerospace - 1.29%
BE Aerospace, Inc. *		535,494	$	9,173,012
Air Travel - 1.00%
Tam SA *		554,400		7,112,952
Apparel & Textiles - 5.10%
Coach, Inc.		237,300		6,713,217
Gymboree Corp. *		100,442		4,498,797
Hanesbrands, Inc. *		767,300		16,159,338
Warnaco Group, Inc. *		236,700		9,006,435
				36,377,787
Auto Parts - 1.39%
Advance Auto Parts, Inc.		234,400		9,915,120
Auto Services - 1.26%
Localiza Rent A Car SA		1,012,500		9,025,309
Banking - 1.84%
Huntington Bancshares, Inc.		1,246,100		5,682,216
Julius Baer Holding AG		146,247		7,464,480
				13,146,696
Biotechnology - 0.81%
Cephalon, Inc. * (a)		101,277		5,765,700
Building Materials & Construction - 2.36%
Lennox International, Inc.		237,900		8,535,852
Masco Corp.		574,081		8,312,693
				16,848,545
Buildings - 1.33%
MRV Engenharia e Participacoes SA		523,400		9,481,019
Cellular Communications - 1.10%
RF Micro Devices, Inc. *		1,673,460		7,865,262
Chemicals - 2.40%
Huabao International Holdings, Ltd.		7,455,000		7,758,332
The Scotts Miracle-Gro Company, Class A		230,500	$	9,379,045
				17,137,377
Colleges & Universities - 1.54%
Corinthian Colleges, Inc. *		573,817		11,000,072
Commercial Services - 3.17%
Brink’s Home Security Holdings, Inc. *		239,000		7,473,530
Great American Group, Inc. *		984,000		4,477,200
Pool Corp. (a)		447,170		10,651,589
				22,602,319
Computer Services - 0.99%
NetApp, Inc. *		310,600		7,066,150
Computers & Business Equipment - 2.55%
Juniper Networks, Inc. *		272,500		6,286,575
Seagate Technology		857,500		11,876,375
				18,162,950
Construction Materials - 0.49%
Martin Marietta Materials, Inc.		39,600		3,468,168
Correctional Facilities - 1.23%
Corrections Corp. of America *		440,900		8,747,456
Cosmetics & Toiletries - 0.49%
Estee Lauder Companies, Inc., Class A		98,200		3,520,470
Crude Petroleum & Natural Gas - 0.63%
Ultra Petroleum Corp. *		97,100		4,508,353
Drugs & Health Care - 1.26%
Seattle Genetics, Inc. *		180,000		2,205,000
Shionogi & Company, Ltd.		277,947		6,786,877
				8,991,877
Educational Services - 0.99%
ITT Educational Services, Inc. *		67,400		7,076,326
Electrical Equipment - 1.91%
AMETEK, Inc.		216,700		6,821,716
Regal-Beloit Corp.		149,600		6,800,816
				13,622,532
Electronics - 0.31%
Itron, Inc. *		40,000		2,191,600
Energy - 0.99%
SunPower Corp., Class A * (a)		277,800		7,042,230
Financial Services - 3.20%
Ameriprise Financial, Inc.		239,200		7,183,176
NASDAQ OMX Group, Inc. *		386,347		8,480,316
Western Union Company		396,593		7,154,538
				22,818,030
Food & Beverages - 3.64%
China Mengniu Dairy Company, Ltd. *		1,288,000		3,046,737
Coca-Cola Enterprises, Inc.		358,900		7,253,369
Dr Pepper Snapple Group, Inc. *		262,000		6,927,280
Green Mountain Coffee Roasters, Inc. * (a)		145,800		8,775,702
				26,003,088
Healthcare Products - 6.12%
Beckman Coulter, Inc.		83,900		5,681,708

The accompanying notes are an integral part of the financial statements.

229

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Stock Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products (continued)
Edwards Lifesciences Corp. *		141,700	$	8,768,396
Herbalife, Ltd.		346,400		10,488,992
Hologic, Inc. *		460,400		7,573,580
Intuitive Surgical, Inc. * (a)		22,800		5,077,788
St. Jude Medical, Inc. *		158,200		6,097,028
				43,687,492
Hotels & Restaurants - 1.22%
The Cheesecake Factory, Inc. *		475,400		8,733,098
Household Products - 3.37%
Jarden Corp. *		649,768		15,821,851
Tempur-Pedic International, Inc. * (a)		555,741		8,224,966
				24,046,817
Industrial Machinery - 1.60%
Pall Corp.		196,000		5,827,080
Parker-Hannifin Corp.		115,600		5,625,096
				11,452,176
Industrials - 0.52%
Aecom Technology Corp. *		134,900		3,697,609
Insurance - 0.65%
W.R. Berkley Corp.		180,200		4,604,110
Internet Service Provider - 1.19%
Equinix, Inc. * (a)		100,600		8,476,556
Internet Software - 0.97%
McAfee, Inc. *		173,890		6,917,344
Leisure Time - 2.92%
DreamWorks Animation SKG, Inc., Class A *		268,539		9,065,877
Life Time Fitness, Inc. *		108,466		3,375,462
MGM Mirage, Inc. * (a)		994,384		8,422,432
				20,863,771
Manufacturing - 3.70%
Illinois Tool Works, Inc.		164,300		6,871,026
Ingersoll-Rand PLC		187,100		5,779,519
Pentair, Inc.		257,100		7,283,643
SMA Solar Technology AG		87,539		6,486,407
				26,420,595
Mining - 0.41%
Agnico Eagle Mines, Ltd.		51,000		2,927,400
Oil & Gas Drilling - 0.17%
Karoon Gas Australia, Ltd. *		136,706		1,242,527
Petroleum Services - 0.61%
Smith International, Inc.		157,100		4,331,247
Pharmaceuticals - 4.90%
Alkermes, Inc. *		324,801		2,939,449
Amylin Pharmaceuticals, Inc. * (a)		279,067		3,516,244
Auxilium Pharmaceuticals, Inc. *		198,500		5,714,815
Daiichi Sankyo Company, Ltd.		445,600		9,503,457
Elan Corp. PLC, SADR *		290,700		2,101,761
Regeneron Pharmaceuticals, Inc. *		135,500		3,079,915
Watson Pharmaceuticals, Inc. *		230,080		8,119,523
				34,975,164
Real Estate - 0.67%
BR Malls Participacoes SA *		468,600		$4,773,768
Retail Trade - 9.60%
Aeropostale, Inc. *		224,700		8,797,005
Best Buy Company, Inc.		313,600		11,377,408
Big Lots, Inc. *		304,469		7,739,602
Dick’s Sporting Goods, Inc. *		177,900		3,986,739
Kohl’s Corp. *		184,700		9,528,673
Staples, Inc. (a)		405,200		8,756,372
The Gap, Inc.		493,200		9,691,380
Urban Outfitters, Inc. *		304,500		8,656,935
				68,534,114
Semiconductors - 5.70%
Marvell Technology Group, Ltd. *		507,500		7,739,375
Maxim Integrated Products, Inc.		407,900		7,660,362
MEMC Electronic Materials, Inc. *		382,700		6,104,065
ON Semiconductor Corp. *		782,400		6,313,968
Skyworks Solutions, Inc. *		609,900		7,105,335
Triquint Semiconductor, Inc. *		782,670		5,729,144
				40,652,249
Software - 4.88%
Adobe Systems, Inc. *		308,800		9,702,496
BMC Software, Inc. *		195,800		6,980,270
Red Hat, Inc. *		437,600		10,047,296
Riverbed Technology, Inc. * (a)		338,300		6,522,424
Solera Holdings, Inc. *		59,100		1,556,694
				34,809,180
Telecommunications Equipment &
Services - 3.38%
NeuStar, Inc., Class A *		389,747		9,034,336
Polycom, Inc. *		304,320		7,178,909
Starent Networks Corp. * (a)		390,681		7,907,383
				24,120,628
Transportation - 0.92%
Con-way, Inc.		157,900		6,593,904
Travel Services - 0.41%
Ctrip.com International, Ltd., ADR *		59,800		2,926,612
Trucking & Freight - 0.80%
J.B. Hunt Transport Services, Inc.		204,700		5,737,741
TOTAL COMMON STOCKS (Cost $607,285,030)			$	699,194,502
SHORT TERM INVESTMENTS - 8.04%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		5,735,820	$	57,423,013
TOTAL SHORT TERM INVESTMENTS (Cost $57,386,339)			$	57,423,013

The accompanying notes are an integral part of the financial statements.

230

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Stock Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 0.94%
Bank of New York Tri-Party Repurchase Agreement dated 08/31/2009 at 0.21% to be repurchased at $6,700,039 on 09/01/2009, collateralized by $8,522,381 Federal National Mortgage Association, 7.00% due 10/01/2038 (valued at $6,834,000, including interest)	$	6,700,000	$	6,700,000
TOTAL REPURCHASE AGREEMENTS (Cost $6,700,000)			$	6,700,000
Total Investments (Mid Cap Stock Fund) (Cost $671,371,369) - 106.96%			$	763,317,515
Other assets and liabilities, net - (6.96)%				(49,696,645	)
TOTAL NET ASSETS - 100.00%			$	713,620,870

Mid Cap Value Equity Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 97.80%
Aerospace - 1.37%
Goodrich Corp.		40,116	$	2,212,798
Air Travel - 1.58%
AMR Corp. *		78,790		430,193
Continental Airlines, Inc., Class B *		48,077		637,982
Delta Air Lines, Inc. *		131,504		949,459
UAL Corp. * (a)		35,534		221,377
US Airways Group, Inc. * (a)		94,782		322,259
				2,561,270
Apparel & Textiles - 1.84%
Mohawk Industries, Inc. *		22,821		1,143,788
VF Corp.		26,344		1,832,489
				2,976,277
Auto Parts - 0.45%
Genuine Parts Company		19,725		730,614
Automobiles - 0.24%
Ford Motor Company *		52,126		396,158
Banking - 0.79%
Cullen Frost Bankers, Inc.		11,531		568,247
M&T Bank Corp. (a)		11,501		710,302
				1,278,549
Biotechnology - 0.69%
Life Technologies Corp. *		25,064		1,116,100
Building Materials & Construction - 0.83%
Chicago Bridge & Iron Company N.V.		45,607		717,854
KBR, Inc.		27,861		631,052
				1,348,906
Business Services - 0.95%
Fluor Corp.		14,264		754,566
Jacobs Engineering Group, Inc. *		17,786		782,228
				1,536,794
Chemicals - 4.20%
Eastman Chemical Company		50,129	$	2,614,728
Lubrizol Corp.		33,961		2,163,995
PPG Industries, Inc.		36,657		2,030,798
				6,809,521
Coal - 0.29%
Alpha Natural Resources, Inc. *		14,747		476,476
Computers & Business Equipment - 0.20%
Brocade Communications Systems, Inc. *		45,098		326,058
Construction Materials - 0.91%
Cemex SA de CV, SADR *		111,399		1,479,379
Crude Petroleum & Natural Gas - 3.81%
EQT Corp.		22,943		910,149
Newfield Exploration Company *		36,975		1,430,563
Pioneer Natural Resources Company		31,450		910,792
Southwestern Energy Company *		34,527		1,272,665
Sunoco, Inc.		12,714		342,007
Ultra Petroleum Corp. *		28,166		1,307,747
				6,173,923
Electrical Equipment - 2.25%
A.O. Smith Corp.		29,948		1,139,521
Cooper Industries, Ltd., Class A		77,931		2,513,275
				3,652,796
Electrical Utilities - 4.28%
Allegheny Energy, Inc.		61,787		1,631,794
DTE Energy Company		33,187		1,154,244
Pepco Holdings, Inc.		117,312		1,681,081
Pinnacle West Capital Corp.		18,747		616,964
Wisconsin Energy Corp.		40,659		1,848,765
				6,932,848
Electronics - 2.01%
Agilent Technologies, Inc. *		58,621		1,505,387
Celestica, Inc. *		206,815		1,757,928
				3,263,315
Energy - 1.87%
McDermott International, Inc. *		29,469		700,184
Sempra Energy		46,361		2,325,931
				3,026,115
Financial Services - 1.62%
CIT Group, Inc.		252,546		439,430
Invesco, Ltd.		95,102		1,973,367
SLM Corp. *		23,638		210,378
				2,623,175
Forest Products - 0.98%
Rayonier, Inc.		36,856		1,582,965
Gas & Pipeline Utilities - 2.76%
El Paso Corp.		92,795		856,498
Enbridge, Inc.		63,945		2,379,393
Questar Corp.		36,625		1,236,460
				4,472,351
Healthcare Services - 1.89%
Covance, Inc. *		23,227		1,233,354

The accompanying notes are an integral part of the financial statements.

231

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Services (continued)
Humana, Inc. *		15,742	$	561,989
McKesson Corp.		22,149		1,259,392
				3,054,735
Homebuilders - 1.43%
D.R. Horton, Inc.		59,956		804,010
KB Home		29,532		537,778
Pulte Homes, Inc.		76,659		979,702
				2,321,490
Hotels & Restaurants - 0.45%
Starwood Hotels & Resorts Worldwide, Inc. (a)		24,421		727,257
Household Appliances - 0.68%
Stanley Works		26,990		1,104,701
Industrial Machinery - 3.61%
AGCO Corp. *		26,308		821,862
Cameron International Corp. *		32,970		1,177,359
Cummins, Inc.		21,121		957,204
Manitowoc Company, Inc. (a)		83,285		553,012
Parker-Hannifin Corp.		28,645		1,393,866
Terex Corp. * (a)		32,163		530,046
W.W. Grainger, Inc.		4,730		413,733
				5,847,082
Industrials - 0.48%
Foster Wheeler AG *		26,896		778,639
Insurance - 13.86%
Aon Corp.		32,668		1,364,216
Arch Capital Group, Ltd. *		8,396		545,488
Assurant, Inc.		54,377		1,628,591
Axis Capital Holdings, Ltd.		61,646		1,878,970
Everest Re Group, Ltd.		42,601		3,591,690
Lincoln National Corp.		57,501		1,451,325
Marsh & McLennan Companies, Inc.		31,790		748,337
PartnerRe, Ltd.		43,114		3,186,556
Transatlantic Holdings, Inc.		18,729		915,099
Willis Group Holdings, Ltd.		47,400		1,222,446
XL Capital, Ltd., Class A (a)		341,614		5,927,003
				22,459,721
Internet Software - 1.29%
McAfee, Inc. *		52,482		2,087,734
Leisure Time - 2.44%
National Cinemedia, Inc.		87,286		1,309,290
Regal Entertainment Group, Class A		140,588		1,778,438
Royal Caribbean Cruises, Ltd. (a)		44,952		857,684
				3,945,412
Manufacturing - 3.64%
Eaton Corp.		50,658		2,732,999
Ingersoll-Rand PLC		71,409		2,205,824
Rockwell Automation, Inc.		22,901		958,407
				5,897,230
Medical-Hospitals - 0.44%
Universal Health Services, Inc., Class B		11,997		704,944
Mining - 1.44%
Freeport-McMoRan Copper & Gold, Inc., Class B		36,932	$	2,325,977
Petroleum Services - 1.21%
BJ Services Company		15,990		256,799
Transocean, Ltd. *		7,810		592,310
Weatherford International, Ltd. *		55,825		1,113,709
				1,962,818
Pharmaceuticals - 3.95%
Forest Laboratories, Inc. *		9,893		289,568
Hospira, Inc. *		36,413		1,423,384
King Pharmaceuticals, Inc. *		106,786		1,108,439
Mylan, Inc. * (a)		243,651		3,574,360
				6,395,751
Railroads & Equipment - 2.03%
CSX Corp.		41,471		1,762,518
Kansas City Southern *		63,707		1,522,597
				3,285,115
Real Estate - 3.67%
Avalon Bay Communities, Inc., REIT		16,096		1,037,065
Boston Properties, Inc., REIT		10,842		656,808
Equity Residential, REIT		37,916		1,035,486
PICO Holdings, Inc. *		16,711		553,635
ProLogis, REIT (a)		46,006		511,587
The St. Joe Company *		33,732		1,106,410
Ventas, Inc., REIT		26,767		1,049,534
				5,950,525
Retail Trade - 3.83%
Abercrombie & Fitch Company, Class A		17,489		564,720
Bed Bath & Beyond, Inc. * (a)		33,385		1,217,885
Family Dollar Stores, Inc.		36,101		1,093,138
Macy’s, Inc.		102,161		1,585,539
Ritchie Brothers Auctioneers, Inc. (a)		69,671		1,745,955
				6,207,237
Sanitary Services - 0.15%
Insituform Technologies, Inc., Class A *		13,011		249,161
Semiconductors - 5.81%
ASML Holding NV (a)		38,537		1,058,611
Lam Research Corp. *		41,397		1,270,888
LSI Logic Corp. *		285,108		1,485,413
Maxim Integrated Products, Inc.		108,647		2,040,391
Microchip Technology, Inc. (a)		71,288		1,892,696
Micron Technology, Inc. *		224,998		1,658,235
				9,406,234
Software - 2.29%
Adobe Systems, Inc. *		37,957		1,192,609
Autodesk, Inc. *		45,536		1,066,909
BMC Software, Inc. *		40,505		1,444,003
				3,703,521
Steel - 2.07%
Nucor Corp.		30,918		1,377,088
Steel Dynamics, Inc.		40,592		671,798

The accompanying notes are an integral part of the financial statements.

232

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Cap Value Equity Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Steel (continued)
United States Steel Corp. (a)		29,707	$	1,300,572
				3,349,458
Telephone - 3.05%
CenturyTel, Inc.		67,125		2,163,439
Qwest Communications International, Inc. (a)		481,897		1,730,010
Windstream Corp.		122,128		1,046,637
				4,940,086
Tires & Rubber - 0.68%
Goodyear Tire & Rubber Company *		66,859		1,102,505
Tobacco - 2.88%
Lorillard, Inc.		64,113		4,665,503
Toys, Amusements & Sporting Goods - 0.61%
Hasbro, Inc.		34,652		983,770
TOTAL COMMON STOCKS (Cost $143,668,462)			$	158,432,994
CONVERTIBLE BONDS - 0.19%
Telephone - 0.19%
Qwest Communications International, Inc.
3.50% due 11/15/2025		302,000		298,980
TOTAL CONVERTIBLE BONDS (Cost $408,455)			$	298,980
SHORT TERM INVESTMENTS - 12.93%
Citigroup Funding, Inc.
0.19% due 09/01/2009	$	2,600,000	$	2,600,000
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,832,960		18,350,315
TOTAL SHORT TERM INVESTMENTS (Cost $20,938,283)			$	20,950,315
Total Investments (Mid Cap Value Equity Fund) (Cost $165,015,200) - 110.92%			$	179,682,289
Other assets and liabilities, net - (10.92)%				(17,687,766	)
TOTAL NET ASSETS - 100.00%			$	161,994,523

Mid Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 95.61%
Air Travel - 2.29%
Delta Air Lines, Inc. *		202,000	$	1,458,440
Southwest Airlines Company		662,700		5,420,886
				6,879,326
Aluminum - 0.47%
Alcoa, Inc.		118,000		1,421,900
Apparel & Textiles - 0.71%
Cintas Corp.		77,300		2,121,112
Auto Parts - 1.61%
BorgWarner, Inc.		74,100		2,198,547
TRW Automotive Holdings Corp. *		38,800		684,820
WABCO Holdings, Inc.		102,000	$	1,945,140
				4,828,507
Auto Services - 0.88%
Hertz Global Holdings, Inc. *		267,300		2,651,616
Banking - 6.29%
BB&T Corp.		19,300		539,242
Commerce Bancshares, Inc.		45,100		1,656,523
First Horizon National Corp. *		192,942		2,581,564
First Niagara Financial Group, Inc.		89,100		1,165,428
Greenhill & Company, Inc.		28,600		2,265,120
KeyCorp		317,800		2,116,548
Marshall & Ilsley Corp.		232,800		1,657,536
Northern Trust Corp.		25,900		1,514,114
Valley National Bancorp		68,830		802,558
WestAmerica Bancorp		44,100		2,268,063
Wilmington Trust Corp.		166,300		2,333,189
				18,899,885
Biotechnology - 0.23%
Biogen Idec, Inc. *		13,500		677,835
Broadcasting - 0.57%
Discovery Communications, Inc., Series A *		39,600		1,026,432
Discovery Communications, Inc., Series C *		29,600		691,752
				1,718,184
Business Services - 4.31%
Automatic Data Processing, Inc.		16,300		625,105
Equifax, Inc.		73,200		2,023,248
Manpower, Inc.		83,600		4,322,120
Paychex, Inc.		105,400		2,981,766
Total Systems Services, Inc.		197,100		3,007,746
				12,959,985
Cable & Television - 1.21%
Cablevision Systems Corp., Class A		5,400		120,636
DISH Network Corp. *		98,800		1,611,428
Scripps Networks Interactive, Inc., Class A		58,400		1,896,248
				3,628,312
Cellular Communications - 2.11%
Motorola, Inc.		464,200		3,332,956
Telephone & Data Systems, Inc. - Special Shares		89,200		2,259,436
Telephone & Data Systems, Inc.		28,000		738,360
				6,330,752
Coal - 0.54%
Arch Coal, Inc.		93,406		1,617,792
Colleges & Universities - 0.75%
Career Education Corp. *		95,400		2,265,750
Computers & Business Equipment - 1.34%
National Instruments Corp.		59,000		1,512,170
Seagate Technology		182,200		2,523,470
				4,035,640
Cosmetics & Toiletries - 2.47%
Alberto-Culver Company		128,100		3,380,559
Estee Lauder Companies, Inc., Class A		71,700		2,570,445

The accompanying notes are an integral part of the financial statements.

233

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Cosmetics & Toiletries (continued)
International Flavors & Fragrances, Inc.		41,000	$	1,460,420
				7,411,424
Crude Petroleum & Natural Gas - 2.67%
Cimarex Energy Company		129,100		5,040,064
Suncor Energy, Inc.		97,864		2,998,553
				8,038,617
Electrical Equipment - 1.46%
Molex, Inc.		260,000		4,375,800
Electrical Utilities - 6.66%
Allegheny Energy, Inc.		43,400		1,146,194
Ameren Corp.		49,100		1,324,227
American Electric Power Company, Inc.		62,900		1,976,947
Calpine Corp. *		179,300		2,108,568
Constellation Energy Group, Inc.		41,100		1,300,815
FirstEnergy Corp.		43,400		1,958,642
Integrys Energy Group, Inc.		33,700		1,156,921
Mirant Corp. *		253,600		4,273,160
Pepco Holdings, Inc.		89,200		1,278,236
Pinnacle West Capital Corp.		47,400		1,559,934
PNM Resources, Inc.		78,600		918,048
Teco Energy, Inc.		77,100		1,026,972
				20,028,664
Electronics - 2.39%
AVX Corp.		215,100		2,497,311
Harman International Industries, Inc.		32,400		971,676
Tyco Electronics, Ltd. *		162,600		3,710,532
				7,179,519
Energy - 3.28%
Duke Energy Corp.		154,000		2,385,460
Nexen, Inc.		235,700		4,633,862
NRG Energy, Inc. *		105,200		2,824,620
				9,843,942
Financial Services - 4.30%
Discover Financial Services		456,200		6,272,750
E*TRADE Financial Corp. *		1,755,700		3,090,032
Janus Capital Group, Inc.		279,600		3,556,512
				12,919,294
Food & Beverages - 4.81%
Campbell Soup Company		134,000		4,202,240
Coca-Cola Enterprises, Inc.		26,300		531,523
Hershey Company		73,300		2,875,559
McCormick & Company, Inc.		69,600		2,266,872
Sysco Corp.		141,000		3,594,090
Tootsie Roll Industries, Inc.		41,628		984,502
				14,454,786
Forest Products - 2.10%
Weyerhaeuser Company		168,700		6,307,693
Gas & Pipeline Utilities - 1.13%
NiSource, Inc.		74,100		978,861
Williams Companies, Inc.		147,000		2,416,680
				3,395,541
Gold - 0.15%
AngloGold Ashanti, Ltd., SADR		12,000	$	461,040
Healthcare Products - 1.49%
Boston Scientific Corp. *		85,100		999,925
CareFusion Corp. *		2,200		42,900
St. Jude Medical, Inc. *		17,700		682,158
Stryker Corp.		53,500		2,218,110
Zimmer Holdings, Inc. *		11,100		525,585
				4,468,678
Healthcare Services - 5.14%
Cardinal Health, Inc.		112,500		3,890,250
Healthsouth Corp. *		353,100		5,511,891
Lincare Holdings, Inc. *		112,000		2,955,680
Weight Watchers International, Inc.		112,300		3,080,389
				15,438,210
Holdings Companies/Conglomerates - 0.39%
Textron, Inc.		77,000		1,182,720
Household Products - 0.57%
Fortune Brands, Inc.		43,200		1,719,792
Industrial Machinery - 0.44%
Dover Corp.		38,600		1,335,174
Insurance - 6.59%
Allstate Corp.		113,800		3,344,582
Arthur J. Gallagher & Company		30,000		713,100
Axis Capital Holdings, Ltd.		34,200		1,042,416
CIGNA Corp.		26,400		776,952
Cincinnati Financial Corp.		88,700		2,281,364
First American Corp.		29,200		920,384
Marsh & McLennan Companies, Inc.		133,900		3,152,006
Montpelier Re Holdings, Ltd.		36,200		582,458
OneBeacon Insurance Group, Ltd.		68,300		937,759
Progressive Corp. *		175,000		2,891,000
Prudential Financial, Inc.		12,400		627,192
Radian Group, Inc.		98,000		898,660
The Travelers Companies, Inc.		32,400		1,633,608
				19,801,481
International Oil - 1.25%
Murphy Oil Corp.		66,100		3,767,700
Internet Retail - 1.45%
Expedia, Inc. *		66,900		1,542,045
Liberty Media Corp. - Interactive A *		293,800		2,814,604
				4,356,649
Internet Software - 0.51%
Electronic Arts, Inc. *		83,800		1,526,836
Leisure Time - 1.20%
International Game Technology		172,500		3,608,700
Liquor - 0.33%
Brown Forman Corp., Class B		22,000		983,840
Metal & Metal Products - 0.58%
Franco-Nevada Corp.		68,200		1,754,916
Mining - 0.84%
Freeport-McMoRan Copper & Gold, Inc., Class B		19,800		1,247,004

The accompanying notes are an integral part of the financial statements.

234

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Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Mid Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Mining (continued)
Gold Fields, Ltd., SADR		105,300	$	1,270,971
				2,517,975
Paper - 1.90%
Domtar Corp. *		75,133		2,661,962
International Paper Company		26,100		598,995
Temple-Inland, Inc.		144,800		2,448,568
				5,709,525
Petroleum Services - 1.47%
Baker Hughes, Inc.		39,500		1,360,775
BJ Services Company		189,600		3,044,976
				4,405,751
Pharmaceuticals - 0.80%
Onyx Pharmaceuticals, Inc. *		30,000		962,100
OSI Pharmaceuticals, Inc. *		20,300		678,426
Sepracor, Inc. *		41,300		749,595
				2,390,121
Publishing - 2.88%
Meredith Corp.		151,400		4,190,752
Scholastic Corp.		105,100		2,560,236
The Washington Post Company, Class B		4,400		1,911,184
				8,662,172
Real Estate - 4.46%
Duke Realty Corp., REIT		76,000		875,520
Kimco Realty Corp., REIT		193,300		2,425,915
SL Green Realty Corp., REIT		49,500		1,746,855
Starwood Property Trust, Inc. *		61,300		1,213,127
The St. Joe Company *		125,300		4,109,840
Vornado Realty Trust, REIT		24,647		1,417,695
Weingarten Realty Investors, REIT		81,600		1,620,576
				13,409,528
Retail Grocery - 0.58%
Whole Foods Market, Inc. *		60,300		1,753,524
Retail Trade - 3.46%
Bed Bath & Beyond, Inc. *		49,200		1,794,816
CarMax, Inc. *		89,200		1,544,052
The Gap, Inc.		265,900		5,224,935
Tiffany & Company		50,600		1,840,828
				10,404,631
Sanitary Services - 0.80%
Nalco Holding Company		134,700		2,411,130
Semiconductors - 1.77%
ASML Holding NV		38,400		1,054,848
Novellus Systems, Inc. *		140,400		2,690,064
Teradyne, Inc. *		119,700		987,525
Xilinx, Inc.		26,200		582,688
				5,315,125
Software - 0.41%
CA, Inc.		55,000		1,225,950
Telephone - 0.64%
Harris Corp.		55,400		1,924,042
Toys, Amusements & Sporting Goods - 0.93%
Mattel, Inc.		155,700	$	2,801,043
TOTAL COMMON STOCKS (Cost $242,138,681)			$	287,328,129
PREFERRED STOCKS - 0.23%
Insurance - 0.23%
Assured Guaranty, Ltd., 8.50%		8,300		683,389
TOTAL PREFERRED STOCKS (Cost $415,000)			$	683,389
CORPORATE BONDS - 0.60%
Auto Services - 0.25%
Hertz Global Holdings, Inc.
5.25% due 06/01/2014		539,000		746,515
Financial Services - 0.10%
Janus Capital Group, Inc.
3.25% due 07/15/2014		269,000		313,049
Holdings Companies/Conglomerates - 0.25%
Textron Inc, Series TXT
4.50% due 05/01/2013		550,000		754,187
TOTAL CORPORATE BONDS (Cost $1,399,088)			$	1,813,751
CONVERTIBLE BONDS - 0.06%
Aluminum - 0.04%
Alcoa, Inc.
5.25% due 03/15/2014		62,000		126,558
Semiconductors - 0.02%
Teradyne, Inc., Series TER
4.50% due 03/15/2014		28,000		47,775
TOTAL CONVERTIBLE BONDS (Cost $90,000)			$	174,333
SHORT TERM INVESTMENTS - 2.50%
CAFCO LLC
0.40% due 09/11/2009	$	1,298,000	$	1,297,856
CIESCO LLC
0.01% due 09/15/2009		860,000		859,866
Straight-A Funding LLC
0.01% due 09/08/2009		5,000,000		4,995,837
T. Rowe Price Reserve Investment Fund,
0.3265%		356,557		356,557
TOTAL SHORT TERM INVESTMENTS (Cost $7,510,116)			$	7,510,116
Total Investments (Mid Value Fund) (Cost $251,552,885) - 99.00%			$	297,509,718
Other assets and liabilities, net - 1.00%				3,019,213
TOTAL NET ASSETS - 100.00%			$	300,528,931

The accompanying notes are an integral part of the financial statements.

235

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Natural Resources Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 97.15%
Coal - 3.88%
CONSOL Energy, Inc.		443,386	$	16,587,070
Peabody Energy Corp.		286,400		9,359,552
				25,946,622
Crude Petroleum & Natural Gas - 17.60%
Chesapeake Energy Corp.		683,100		15,602,004
Devon Energy Corp.		202,300		12,417,174
EOG Resources, Inc.		358,069		25,780,968
EQT Corp.		330,160		13,097,447
Marathon Oil Corp.		391,209		12,076,622
Newfield Exploration Company *		165,652		6,409,076
Noble Energy, Inc.		157,264		9,508,182
Ultra Petroleum Corp. *		153,600		7,131,648
XTO Energy, Inc.		404,632		15,618,795
				117,641,916
Diversified Minerals - 4.52%
Vale SA, SADR (a)		1,756,304		30,225,992
Domestic Oil - 1.70%
Denbury Resources, Inc. *		745,800		11,351,076
Gas & Pipeline Utilities - 5.16%
Eni SpA, SADR (a)		138,300		6,562,335
Gazprom OAO, SADR		1,010,872		21,028,943
Williams Companies, Inc.		417,700		6,866,988
				34,458,266
Gold - 4.72%
AngloGold Ashanti, Ltd., SADR (a)		309,341		11,884,882
Barrick Gold Corp.		246,356		8,548,553
Gold Fields, Ltd.		916,923		11,124,816
				31,558,251
International Oil - 23.41%
BP PLC, SADR		386,927		19,907,394
Canadian Natural Resources, Ltd.		532,333		30,493,357
ConocoPhillips Company		291,228		13,113,997
EnCana Corp.		404,554		21,085,957
Exxon Mobil Corp.		192,605		13,318,636
Lukoil Oil Company, ADR (a)		135,827		6,696,271
Petroleo Brasileiro SA, ADR (a)		472,796		18,741,633
Royal Dutch Shell PLC, ADR		383,669		21,282,119
Talisman Energy, Inc.		734,798		11,813,149
				156,452,513
Metal & Metal Products - 8.75%
Alumina, Ltd.		11,553,494		15,803,960
Cameco Corp.		497,922		13,234,767
Sumitomo Metal Industries, Ltd.		2,523,000		6,274,044
Vedanta Resources PLC		802,538		23,196,721
				58,509,492
Mining - 7.32%
Anglo American PLC *		321,019		10,454,515
Anglo Platinum, Ltd. *		211,947		18,837,458
Compania de Minas Buenaventura SA, ADR		65,300		1,650,131
Xstrata PLC		1,357,923		17,978,232
				48,920,336
Paper - 2.17%
International Paper Company		633,000	$	14,527,350
Petroleum Services - 14.87%
Baker Hughes, Inc.		301,800		10,397,010
Halliburton Company		372,602		8,834,393
Reliance Industries, Ltd., GDR * (a)		105,136		8,934,156
Suncor Energy, Inc. *		1,009,841		30,892,510
Total SA, SADR		347,762		19,916,330
Valero Energy Corp.		738,766		13,844,475
Weatherford International, Ltd. *		330,900		6,601,455
				99,420,329
Steel - 3.05%
ArcelorMittal (a)		285,825		10,183,945
POSCO, SADR		111,600		10,206,936
				20,390,881
TOTAL COMMON STOCKS (Cost $667,098,853)			$	649,403,024
PREFERRED STOCKS - 0.06%
Mining - 0.06%
Anglo Platinum, Ltd. (k)		32,311		415,252
TOTAL PREFERRED STOCKS (Cost $952,131)			$	415,252
SHORT TERM INVESTMENTS - 10.27%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		6,854,929	$	68,626,751
TOTAL SHORT TERM INVESTMENTS (Cost $68,625,987)			$	68,626,751
REPURCHASE AGREEMENTS - 2.07%
Bank of New York Tri-Party Repurchase Agreement dated 08/31/2009 at 0.21% to be repurchased at $13,200,077 on 09/01/2009, collateralized by $25,219,990 Federal Home Loan Mortgage Corp., 5.00% due 06/01/2038 (valued at $13,464,001, including interest)	$	13,200,000	$	13,200,000
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $668,001 on 09/01/2009, collateralized by $695,000 Federal National Mortgage Association, 5.00% due 05/20/2024 (valued at $682,838, including interest)		668,000		668,000
TOTAL REPURCHASE AGREEMENTS (Cost $13,868,000)			$	13,868,000
Total Investments (Natural Resources Fund) (Cost $750,544,971) - 109.55%			$	732,313,027
Other assets and liabilities, net - (9.55)%				(63,824,732	)
TOTAL NET ASSETS - 100.00%			$	668,488,295

The accompanying notes are an integral part of the financial statements.

236

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Real Estate Equity Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 93.92%
Hotels & Restaurants - 2.68%
Marriott International, Inc., Class A (a)		157,697	$	3,768,960
Starwood Hotels & Resorts Worldwide, Inc. (a)		60,900		1,813,602
				5,582,562
Leisure Time - 1.21%
Gaylord Entertainment Company * (a)		124,400		2,527,808
Paper - 1.50%
Plum Creek Timber Company, Inc. (a)		103,100		3,122,899
Real Estate - 88.53%
Alexandria Real Estate Equities, Inc., REIT (a)		41,200		2,295,252
AMB Property Corp., REIT		225,700		5,152,731
Avalon Bay Communities, Inc., REIT (a)		123,716		7,971,022
Boston Properties, Inc., REIT (a)		110,650		6,703,177
BRE Properties, Inc., Class A, REIT		197,240		5,575,975
Brookfield Properties Corp. REIT		363,300		3,985,401
Camden Property Trust, REIT		205,400		7,538,180
CBL & Associates Properties, Inc., REIT		660,714		6,190,890
Cousins Properties, Inc., REIT (a)		150,467		1,247,371
DCT Industrial Trust, Inc., REIT		605,900		3,199,152
Douglas Emmett, Inc., REIT		397,000		4,807,670
EastGroup Properties, Inc., REIT		81,100		3,052,604
Equity One, Inc., REIT (a)		339,400		5,345,550
Equity Residential, REIT		283,350		7,738,288
Essex Property Trust, Inc., REIT		73,900		5,513,679
Federal Realty Investment Trust, REIT		111,680		6,965,482
Healthcare Realty Trust, Inc., REIT (a)		213,700		4,626,605
Highwoods Properties, Inc., REIT		114,200		3,354,054
Host Hotels & Resorts, Inc., REIT *		404,250		4,030,372
Kilroy Realty Corp., REIT		220,000		6,096,200
Kimco Realty Corp., REIT (a)		554,300		6,956,465
LaSalle Hotel Properties, REIT		130,520		2,160,106
Post Properties, Inc., REIT (a)		110,100		1,876,104
Public Storage, Inc., REIT		101,600		7,167,880
Regency Centers Corp., REIT		223,550		7,500,103
Simon Property Group, Inc., REIT		284,457		18,097,154
SL Green Realty Corp., REIT (a)		193,500		6,828,615
Starwood Property Trust, Inc. *		161,600		3,198,064
Taubman Centers, Inc., REIT (a)		145,900		4,620,653
The Macerich Company, REIT (a)		196,910		5,643,441
The St. Joe Company * (a)		42,500		1,394,000
Vornado Realty Trust, REIT		184,560		10,615,891
Washington Real Estate Investment Trust, REIT (a)		131,700		3,550,632
Weingarten Realty Investors, REIT		190,400		3,781,344
				184,780,107
TOTAL COMMON STOCKS (Cost $170,015,848)			$	196,013,376
CONVERTIBLE BONDS - 7.85%
Real Estate - 7.85%
Alexandria Real Estate Equities, Inc.
8.00% due 04/15/2029 (f)		1,844,000		2,807,490
General Growth Properties LP
3.98% due 04/15/2027 ^ (f)		6,223,000		2,955,925
Kilroy Realty LP
3.25% due 04/15/2012 (f)		3,538,000		3,057,387
Macerich Company
3.25% due 03/15/2012 (f)	$	2,353,000	$	2,088,288
ProLogis
2.25% due 04/01/2037		3,622,000		3,119,448
SL Green Realty Corp.
3.00% due 03/30/2027 (f)		2,671,000		2,347,141
				16,375,679
TOTAL CONVERTIBLE BONDS (Cost $12,338,270)			$	16,375,679
SHORT TERM INVESTMENTS - 28.28%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		5,896,264	$	59,029,273
T. Rowe Price Reserve Investment Fund,
0.3265%		1,000		990
TOTAL SHORT TERM INVESTMENTS (Cost $59,002,798)			$	59,030,263
Total Investments (Real Estate Equity Fund) (Cost $241,356,916) - 130.05%			$	271,419,318
Other assets and liabilities, net - (30.05)%				(62,709,247	)
TOTAL NET ASSETS - 100.00%			$	208,710,071

Real Estate Securities Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 99.06%
Holdings Companies/Conglomerates - 0.14%
NRDC Acquisition Corp. *		10,600	$	104,728
Real Estate - 98.92%
AMB Property Corp., REIT		97,750		2,231,632
American Campus Communities, Inc., REIT		72,750		1,892,228
Apartment Investment & Management Company, Class A, REIT		87,000		1,058,790
Avalon Bay Communities, Inc., REIT (a)		43,787		2,821,196
BioMed Realty Trust, Inc., REIT		112,700		1,519,196
Boston Properties, Inc., REIT (a)		85,000		5,149,300
BRE Properties, Inc., Class A, REIT		56,700		1,602,909
Brookfield Properties Corp. REIT		40,000		438,800
Cogdell Spencer, Inc., REIT		79,000		357,080
DiamondRock Hospitality Company, REIT		87,000		595,950
Digital Realty Trust, Inc., REIT (a)		75,168		3,275,821
Duke Realty Corp., REIT		145,300		1,673,856
Education Realty Trust, Inc., REIT		84,200		492,570
Entertainment Properties Trust, REIT		9,993		313,380
Equity Lifestyle Properties, Inc., REIT		2,370		95,393
Equity Residential, REIT		100,710		2,750,390
Government Properties Income Trust, REIT *		17,100		364,743
HCP, Inc., REIT		151,000		4,300,480
Health Care, Inc., REIT		28,650		1,223,642
Host Hotels & Resorts, Inc., REIT		188,200		1,876,354
Kilroy Realty Corp., REIT		48,200		1,335,622
Kimco Realty Corp., REIT		178,800		2,243,940
LaSalle Hotel Properties, REIT		2,100		34,755

The accompanying notes are an integral part of the financial statements.

237

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Real Estate Securities Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Real Estate (continued)
LTC Properties, Inc., REIT		15,559	$	396,288
Medical Properties Trust, Inc., REIT (a)		13,700		103,709
Nationwide Health Properties, Inc., REIT		95,779		3,053,435
Post Properties, Inc., REIT (a)		65,525		1,116,546
ProLogis, REIT (a)		203,300		2,260,696
PS Business Parks, Inc., REIT		14,550		770,132
Public Storage, Inc., REIT		81,280		5,734,304
Regency Centers Corp., REIT		112,770		3,783,434
Senior Housing Properties Trust, REIT		127,190		2,551,431
Simon Property Group, Inc., REIT		146,181		9,300,035
SL Green Realty Corp., REIT		31,450		1,109,871
Sunstone Hotel Investors, Inc., REIT		103,250		646,345
The Macerich Company, REIT (a)		17,346		497,136
Ventas, Inc., REIT		45,464		1,782,643
Vornado Realty Trust, REIT (a)		62,320		3,584,646
				74,338,678
TOTAL COMMON STOCKS (Cost $61,418,597)			$	74,443,406
SHORT TERM INVESTMENTS - 18.37%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,378,828	$	13,803,860
TOTAL SHORT TERM INVESTMENTS (Cost $13,799,706)			$	13,803,860
REPURCHASE AGREEMENTS - 0.71%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $536,001 on 09/01/2009, collateralized by $500,000 Federal Home Loan Mortgage Corp., 5.00% due 02/16/2017 (valued at $547,930, including interest)	$	536,000	$	536,000
TOTAL REPURCHASE AGREEMENTS (Cost $536,000)			$	536,000
Total Investments (Real Estate Securities Fund) (Cost $75,754,303) - 118.14%			$	88,783,266
Other assets and liabilities, net - (18.14)%				(13,632,152	)
TOTAL NET ASSETS - 100.00%			$	75,151,114

Real Return Bond Fund

		Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 93.64%
Treasury Inflation Protected
Securities (d) - 93.62%
0.625% due 04/15/2013		$	26,728,978	$	26,311,338
1.625% due 01/15/2018			205,860		203,608
1.875% due 07/15/2015			47,891,520		48,490,164
2.00% due 01/15/2016			24,118,968		24,541,050
2.375% due 04/15/2011			59,751,450		61,170,547
2.375% due 01/15/2017 to 01/15/2025 (j)			159,301,650		163,514,964
2.50% due 07/15/2016 to 01/15/2029			57,236,350		60,052,819
3.375% due 01/15/2012		$	1,578,720	$	1,664,069
3.625% due 04/15/2028			26,530,879		31,977,987
3.875% due 04/15/2029 (j)			93,900,674		117,698,673
1.25% due 04/15/2014			15,283,500		15,283,500
2.00% due 01/15/2026			47,477,428		46,127,265
2.375% due 01/15/2027			10,264,992		10,511,988
1.375% due 07/15/2018			25,299,241		24,500,746
1.625% due 01/15/2015			13,325,740		13,300,754
1.875% due 07/15/2013			86,058,598		87,537,773
2.00% due 07/15/2014 (j)			93,103,798		94,994,922
2.125% due 01/15/2019			33,143,550		34,117,142
2.625% due 07/15/2017			81,881,054		87,126,518
3.00% due 07/15/2012			36,098,930		37,915,140
3.50% due 01/15/2011 ***			57,487,280		59,678,983
					1,046,719,950
U.S. Treasury Notes - 0.02%
0.875% due 04/30/2011 ***			262,000		262,399
TOTAL U.S. TREASURY OBLIGATIONS (Cost $1,028,825,001)				$	1,046,982,349
U.S. GOVERNMENT AGENCY OBLIGATIONS - 7.18%
Federal Home Loan Mortgage Corp. - 1.91%
0.4019% due 08/05/2011 (b)***			9,362,000		9,364,100
4.50% due 05/15/2017			123,005		127,050
5.50% TBA **			3,800,000		3,958,828
6.00% due 07/01/2038 to 02/01/2039			2,618,056		2,764,005
0.3431% due 02/01/2011 (b)			5,200,000		5,198,175
					21,412,158
Federal National Mortgage
Association - 4.28%
2.41% due 10/01/2044 (b)			91,005		90,992
5.50% due 06/01/2037			671,357		700,545
5.50% TBA **			26,200,000		27,264,375
6.00% due 07/01/2039			235,999		249,108
6.00% TBA **			14,400,000		15,149,249
6.50% due 06/01/2035 to 11/01/2037			4,044,649		4,348,217
					47,802,486
Government National Mortgage
Association - 0.73%
6.00% due 08/15/2034 to 10/15/2038			7,700,981		8,147,281
Small Business Administration - 0.26%
4.504% due 02/10/2014			607,813		623,401
4.88% due 11/01/2024			2,222,339		2,330,105
					2,953,506
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $79,548,755)				$	80,315,431
FOREIGN GOVERNMENT OBLIGATIONS - 2.04%
Japan - 2.04%
Government of Japan
0.80% due 12/10/2015	JPY		30,150,000		297,968
1.10% due 12/10/2016			880,000,000		8,708,265
1.20% due 06/10/2017			786,240,000		7,761,849

The accompanying notes are an integral part of the financial statements.

238

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Real Return Bond Fund (continued)

		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Japan (continued)
Government of Japan (continued)
1.20% due 12/10/2017 (j)	JPY		370,290,000	$	3,641,616
1.40% due 06/10/2018 (j)			238,920,000		2,360,442
					22,770,140
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $20,162,864)				$	22,770,140
CORPORATE BONDS - 12.67%
Advertising - 0.12%
Omnicom Group, Inc.
5.90% due 04/15/2016		$	1,250,000		1,287,413
Banking - 2.60%
ANZ National International, Ltd.
6.20% due 07/19/2013 (f)			1,900,000		2,042,310
Barclays Bank PLC
7.434% until 12/15/2017, then variable due 09/29/2049 (f)			600,000		486,000
6.05% due 12/04/2017 (f)			5,200,000		5,132,140
10.179% due 06/12/2021 (f)			160,000		198,984
HBOS PLC
6.75% due 05/21/2018 (f)			1,000,000		833,980
National Australia Bank, Ltd.
0.9144% due 02/08/2010 (b)(f)			7,600,000		7,598,320
5.35% due 06/12/2013 (f)			1,700,000		1,801,572
Royal Bank of Scotland Group PLC
7.0916% until 09/29/2017, then variable due 10/29/2049	EUR		400,000		217,907
Santander Perpetual SA Unipersonal
6.671% until 10/24/2017, then variable due 10/29/2049 (f)		$	2,500,000		2,085,805
Swedbank AB
2.80% due 02/10/2012 (f)			7,200,000		7,314,697
Wachovia Bank NA, BKNT
0.7262% due 12/02/2010 (b)			1,400,000		1,391,502
					29,103,217
Computers & Business Equipment - 0.35%
Hewlett-Packard Company
2.25% due 05/27/2011			3,800,000		3,868,848
Financial Services - 5.30%
American Express Bank FSB
5.50% due 04/16/2013			900,000		933,891
American Express Bank FSB, BKNT
6.00% due 09/13/2017			800,000		789,397
American Express Company
7.00% due 03/19/2018			1,560,000		1,636,763
American Express Credit Corp.
5.125% due 08/25/2014			900,000		910,920
Citigroup Capital XXI
8.3% until 12/21/2037, then variable due 12/21/2057			1,100,000		926,750
Citigroup Funding, Inc., MTN
1.5181% due 05/07/2010 (b)			600,000		597,586
Citigroup, Inc.
0.6313% due 12/28/2009 (b)			4,000,000		3,982,056
5.50% due 04/11/2013			1,300,000		1,293,954
Ford Motor Credit Company LLC
7.25% due 10/25/2011		$	6,350,000	$	5,971,191
7.80% due 06/01/2012			450,000		416,271
GATX Financial Corp.
5.80% due 03/01/2016			1,000,000		853,074
General Electric Capital Corp.
5.5% until 09/15/2017, then variable due 09/15/2067 (f)	EUR		100,000		94,617
6.5% until 09/15/2017, then variable due 09/15/2067 (f)	GBP		4,500,000		4,908,273
Green Valley, Ltd.
4.629% due 01/10/2011 (b)(f)	EUR		400,000		549,182
International Lease Finance Corp., MTN
6.625% due 11/15/2013		$	600,000		464,599
LeasePlan Corp., NV
3.00% due 05/07/2012 (f)			1,800,000		1,840,707
Lehman Brothers Holdings, Inc.
6.20% due 09/26/2014 ^			300,000		52,500
7.00% due 09/27/2027 ^ (f)			300,000		52,500
Lehman Brothers Holdings, Inc., EMTN
zero coupon due 04/05/2011 ^	EUR		36,000		8,515
5.125% due 06/27/2014 ^ (f)			850,000		204,109
Lehman Brothers Holdings, Inc., MTN
6.875% due 05/02/2018 ^		$	1,200,000		220,500
Longpoint Re, Ltd.
5.8744% due 05/08/2010 (b)(f)			800,000		790,720
Merna Reinsurance, Ltd., Series A
1.2475% due 07/07/2010 (b)			3,500,000		3,378,550
Merrill Lynch & Company, Inc., MTN
6.875% due 04/25/2018			5,000,000		5,105,405
Morgan Stanley
0.76% due 01/18/2011 (b)			2,000,000		1,963,056
0.96% due 10/18/2016 (b)			400,000		354,114
Morgan Stanley, MTN
2.5497% due 05/14/2010 (b)			11,500,000		11,600,751
Mystic Re, Ltd.
10.3606% due 06/07/2011 (b)(f)			1,500,000		1,436,981
New York Life Global Funding
4.65% due 05/09/2013 (f)			1,800,000		1,864,368
Pacific Life Global Funding
5.15% due 04/15/2013 (f)			600,000		605,552
Residential Reinsurance 2007, Ltd., Series CL1
7.9175% due 06/07/2010 (b)(f)			2,200,000		2,166,340
TransCapitalInvest, Ltd.
7.70% due 08/07/2013 (f)			1,300,000		1,350,375
Vita Capita II, Ltd.
1.4969% due 01/01/2010 (b)(f)			300,000		295,260
Vita Capital III, Ltd., Series B-II
1.7169% due 01/01/2012 (b)(f)			500,000		442,750
Wells Fargo & Company
4.375% due 01/31/2013			1,200,000		1,242,521
					59,304,098
Gas & Pipeline Utilities - 0.90%
NGPL PipeCo LLC
6.514% due 12/15/2012 (f)			9,300,000		10,063,772
Healthcare Services - 0.86%
Roche Holdings, Inc.
2.3931% due 02/25/2011 (b)(f)			9,100,000		9,362,144

The accompanying notes are an integral part of the financial statements.

239

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Real Return Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Healthcare Services (continued)
UnitedHealth Group, Inc.
4.875% due 02/15/2013	$	200,000	$	206,542
				9,568,686
Hotels & Restaurants - 0.19%
Yum! Brands, Inc.
6.25% due 03/15/2018		2,000,000		2,164,678
Insurance - 1.81%
American International Group, Inc., MTN
5.85% due 01/16/2018		2,800,000		1,865,811
American International Group, Inc., Series 1
0.62% due 10/18/2011 (b)		1,200,000		1,017,399
American International Group, Inc., Series WI
8.175% until 05/15/2038, then variable due 05/15/2068		1,500,000		705,000
Foundation Re II, Ltd.
7.19% due 11/26/2010 (b)(f)		600,000		570,663
Metropolitan Life Global Funding I
2.55% due 06/10/2011 (b)(f)		8,200,000		8,186,298
5.125% due 04/10/2013 (f)		800,000		823,025
Pricoa Global Funding I
0.7344% due 06/26/2012 (b)(f)		7,600,000		7,086,248
				20,254,444
International Oil - 0.06%
Gaz Capital SA
7.343% due 04/11/2013 (f)		300,000		309,375
8.146% due 04/11/2018 (f)		400,000		394,500
				703,875
Publishing - 0.24%
Pearson Dollar Finance PLC
5.70% due 06/01/2014 (f)		2,500,000		2,616,908
Retail Trade - 0.24%
Federated Retail Holdings, Inc.
5.90% due 12/01/2016		1,000,000		881,497
Macy’s Retail Holdings, Inc.
7.45% due 07/15/2017		1,000,000		909,545
RPM International, Inc.
6.50% due 02/15/2018		1,000,000		917,691
				2,708,733
TOTAL CORPORATE BONDS (Cost $148,907,064)			$	141,644,672
MUNICIPAL BONDS - 0.17%
New Jersey - 0.06%
Tobacco Settlement Financing Corp. of New Jersey
5.00% due 06/01/2041		900,000		612,972
Ohio - 0.05%
Buckeye Tobacco Settlement Financing Authority
6.00% due 06/01/2042		800,000		604,264
West Virginia - 0.06%
Tobacco Settlement Finance Authority of West Virginia
7.467% due 06/01/2047		960,000		675,821
TOTAL MUNICIPAL BONDS (Cost $2,479,159)			$	1,893,057
COLLATERALIZED MORTGAGE
OBLIGATIONS - 1.58%
Banc of America Commercial Mortgage, Inc., Series 2006-5, Class A4
5.414% due 09/10/2047		500,000		451,139
BCAP LLC Trust, Series 2006-AA2, Class A1
0.4356% due 01/25/2037 (b)		839,032		375,715
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-3, Class 3A2
4.4783% due 05/25/2033 (b)		191,741		180,592
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A1
2.90% due 03/25/2035 (b)		1,412,770		1,237,785
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-2, Class A2
2.2156% due 03/25/2035 (b)		497,795		432,777
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-5, Class A1
2.49% due 08/25/2035 (b)		426,844		368,380
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-5, Class A2
4.55% due 08/25/2035 (b)		769,957		666,210
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4
5.888% due 12/10/2049 (b)		183,000		159,076
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class 1A1
2.85% due 12/25/2035 (b)		89,050		76,025
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A1
4.7475% due 08/25/2035 (b)		517,526		465,657
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A2
4.2475% due 08/25/2035 (b)		591,439		500,885
Citigroup Mortgage Loan Trust, Inc., Series 2005-6, Class A3
4.0975% due 08/25/2035 (b)		140,598		118,459
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A4
5.886% due 11/15/2044 (b)		500,000		460,444
Credit Suisse Mortgage Capital Certificates, Series 2007-C3, Class A4
5.9123% due 06/15/2039 (b)		750,000		549,358
Federal Home Loan Mortgage Corp., Series 2979, Class MB
5.50% due 11/15/2018		1,783,712		1,867,055
Federal National Mortgage Association, Series 2007-114, Class A6
0.4656% due 10/27/2037 (b)		5,000,000		4,650,000
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2006-CB17, Class A4
5.429% due 12/12/2043		620,000		557,296
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A3
5.336% due 05/15/2047		800,000		680,930
LB-UBS Commercial Mortgage Trust, Series 2007-C7, Class A3
5.866% due 09/15/2045 (b)		200,000		164,501
MASTR Alternative Loans Trust, Series 2006-2, Class 2A1
0.6656% due 03/25/2036 (b)		1,016,308		487,312

The accompanying notes are an integral part of the financial statements.

240

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Real Return Bond Fund (continued)

	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-9, Class A4
5.70% due 09/12/2049	$	400,000	$	303,514
Morgan Stanley Capital I, Series 2007-IQ15, Class A4
6.0762% due 06/11/2049 (b)		1,160,000		990,410
Residential Accredit Loans, Inc., Series 2006-QO6, Class A1
0.4456% due 06/25/2046 (b)		1,568,705		718,476
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4
5.418% due 01/15/2045		870,000		789,872
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2006-5, Class 3A6
6.268% due 07/25/2036		892,991		413,142
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $18,962,435)			$	17,665,010
ASSET BACKED SECURITIES - 1.95%
Citigroup Mortgage Loan Trust, Inc., Series2007-OPX1, Class A5A
5.764% due 01/25/2037		900,000		446,211
Ford Credit Auto Owner Trust, Series 2008-C, Class A2B
1.1728% due 01/15/2011 (b)		3,650,086		3,655,583
SLM Student Loan Trust, Series 2008-9, Class A
2.0038% due 04/25/2023 (b)		16,729,646		17,301,460
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4
5.572% due 10/15/2048 (b)		500,000		424,912
TOTAL ASSET BACKED SECURITIES (Cost $21,332,025)			$	21,828,166
PREFERRED STOCKS - 0.11%
Financial Services - 0.11%
Wells Fargo & Company, Series K (k)		900,000		810,000
Wells Fargo & Company, Series L, 7.50%		500		426,250
				1,236,250
TOTAL PREFERRED STOCKS (Cost $1,400,000)			$	1,236,250
TERM LOANS - 0.62%
Financial Services - 0.31%
DaimlerChrysler Financial Company
4.29% due 08/03/2012 (b)		3,726,076		3,521,142
Medical-Hospitals - 0.24%
HCA, Inc., Tranche B
2.8475% due 11/01/2013 (b)		2,813,338		2,647,664
Paper - 0.07%
Georgia Pacific Corp.
2.5566% due 12/20/2012 (b)		505,279		488,136
Georgia Pacific Corp., Term C
3.7617% due 12/23/2014 (b)		278,275		276,619
				764,755
TOTAL TERM LOANS (Cost $7,202,107)			$	6,933,561
REPURCHASE AGREEMENTS - 3.34%
Barclays Capital, Inc., Tri-Party Repurchase Agreement dated 08/31/2009 at 0.20% to be repurchased at $26,100,145 on 09/01/2009, collateralized by $27,683,000 Federal National Mortgage Association, 3.22% due 01/27/2016 (valued at$26,939,019, including interest)	$	26,100,000	$	26,100,000
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $11,218,022 on 09/01/2009, collateralized by $11,445,000 Federal National Mortgage Association, zero coupon due 12/30/2009 (valued at $11,445,000, including interest)		11,218,000		11,218,000
TOTAL REPURCHASE AGREEMENTS (Cost $37,318,000)			$	37,318,000
SHORT TERM INVESTMENTS - 0.10%
U.S. Treasury Bills
0.26% due 02/25/2010 ***	$	1,131,000	$	1,129,565
TOTAL SHORT TERM INVESTMENTS (Cost $1,129,565)			$	1,129,565
Total Investments (Real Return Bond Fund) (Cost $1,367,266,975) - 123.40%			$	1,379,716,201
Other assets and liabilities, net - (23.40)%				(261,608,441	)
TOTAL NET ASSETS - 100.00%			$	1,118,107,760

Schedule of Securities Sold Short

	Shares or Principal Amount		Value
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 85.65%
Federal National Mortgage Association
5.50%, TBA **	$	27,100,000	$	28,100,372
6.00%, TBA **		14,800,000	$	15,511,671
6.50%, TBA **		4,500,000	$	4,812,188
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Proceeds $48,277,788)			$	48,424,231
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 14.35%
Government National Mortgage Association
6.00%, TBA **		7,700,000	$	8,116,281
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (Proceeds $8,083,797)			$	8,116,281
Total Securities Sold Short (Real Return Bond Fund) (Proceeds $56,361,585)			$	56,540,512

The accompanying notes are an integral part of the financial statements.

241

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Short Term Government Income Fund

	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 20.74%
Treasury Inflation Protected Securities (d) - 2.09%
2.375% due 04/15/2011	$	505,171	$	517,169
U.S. Treasury Notes - 18.65%
0.875% due 01/31/2011		1,125,000		1,128,779
1.125% due 01/15/2012		1,110,000		1,107,485
1.375% due 04/15/2012		880,000		881,444
1.50% due 12/31/2013		865,000		843,105
1.75% due 03/31/2014		680,000		665,762
				4,626,575
TOTAL U.S. TREASURY OBLIGATIONS (Cost $5,156,589)			$	5,143,744
U.S. GOVERNMENT AGENCY OBLIGATIONS - 72.17%
Federal Agricultural Mortgage Corp. - 6.59%
4.875% due 01/14/2011		500,000		528,889
5.50% due 07/15/2011		1,035,000		1,105,172
				1,634,061
Federal Farm Credit Bank - 15.67%
2.125% due 06/18/2012		1,550,000		1,560,835
2.625% due 04/17/2014		825,000		821,975
3.875% due 10/07/2013		1,430,000		1,504,120
				3,886,930
Federal Home Loan Bank - 11.46%
1.875% due 06/20/2012		430,000		432,212
2.00% due 07/27/2012		1,050,000		1,049,650
3.625% due 12/17/2010 to 10/18/2013		1,305,000		1,361,324
				2,843,186
Federal Home Loan Mortgage Corp. - 16.43%
1.625% due 04/26/2011		1,480,000		1,497,275
2.125% due 04/02/2012 to 09/21/2012		760,000		765,285
2.25% due 02/02/2012		700,000		703,914
4.50% due 07/01/2024		1,075,431		1,106,895
				4,073,369
Federal National Mortgage
Association - 11.51%
2.50% due 05/15/2014		435,000		432,672
2.68% due 12/23/2011		300,000		302,080
3.00% due 09/16/2014		635,000		642,182
3.765% due 07/01/2039 (b)		796,538		813,896
4.253% due 05/01/2034 (b)		434,133		449,925
4.897% due 12/01/2038 (b)		149,078		155,745
4.997% due 04/01/2048 (b)		55,938		58,434
				2,854,934
Tennessee Valley Authority - 10.51%
5.625% due 01/18/2011		910,000		971,125
6.00% due 03/15/2013		732,000		831,239
7.14% due 05/23/2012		700,000		803,563
				2,605,927
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $17,858,532)			$	17,898,407
COLLATERALIZED MORTGAGE
OBLIGATIONS - 5.31%
Federal Home Loan Mortgage Corp., REMICS, Series 2009-3545, Class PA
4.00% due 06/15/2039	$	521,618	$	531,100
Government National Mortgage Association, Series 2009-42, Class DA
5.00% due 07/20/2031		745,374		787,433
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $1,307,053)			$	1,318,533
REPURCHASE AGREEMENTS - 0.91%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $226,000 on 09/01/2009, collateralized by $230,000 Federal Home Loan Bank, 0.93% due 03/30/2010 (valued at $231,725, including interest)	$	226,000	$	226,000
TOTAL REPURCHASE AGREEMENTS (Cost $226,000)			$	226,000
Total Investments (Short Term Government Income Fund) (Cost $24,548,174) - 99.13%			$	24,586,684
Other assets and liabilities, net - 0.87%				214,634
TOTAL NET ASSETS - 100.00%			$	24,801,318

Small Cap Growth Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 101.96%
Aerospace - 2.81%
BE Aerospace, Inc. *		104,470	$	1,789,571
Teledyne Technologies, Inc. *		48,500		1,637,360
				3,426,931
Air Travel - 1.44%
Copa Holdings SA, Class A		20,130		840,830
Tam SA *		71,380		915,805
				1,756,635
Apparel & Textiles - 5.86%
Carter’s, Inc. *		45,420		1,142,767
Gymboree Corp. *		23,090		1,034,201
Hanesbrands, Inc. *		153,260		3,227,656
Warnaco Group, Inc. *		45,580		1,734,319
				7,138,943
Auto Parts - 1.21%
Advance Auto Parts, Inc.		34,730		1,469,079
Automobiles - 0.12%
Rush Enterprises, Inc., Class A *		10,400		145,704
Banking - 1.72%
First Citizens Bancshares, Inc.		418		57,859
International Bancshares Corp.		52,790		815,078
Signature Bank *		40,230		1,221,383
				2,094,320

The accompanying notes are an integral part of the financial statements.

242

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Building Materials & Construction - 2.13%
Eagle Materials, Inc.		20,170	$	531,076
Lennox International, Inc.		34,210		1,227,455
Trex Company, Inc. *		43,918		834,881
				2,593,412
Business Services - 3.07%
Coinstar, Inc. *		30,570		1,009,116
Constant Contact, Inc. *		75,100		1,564,333
Parexel International Corp. *		90,938		1,166,734
				3,740,183
Cable & Television - 0.76%
TiVo, Inc. *		94,300		925,083
Cellular Communications - 1.14%
RF Micro Devices, Inc. *		296,540		1,393,738
Chemicals - 2.37%
Cytec Industries, Inc.		36,900		1,066,041
The Scotts Miracle-Gro Company, Class A		44,660		1,817,215
				2,883,256
Coal - 0.39%
Massey Energy Company		17,730		480,128
Colleges & Universities - 2.18%
Corinthian Colleges, Inc. *		138,560		2,656,195
Commercial Services - 2.36%
Brink’s Home Security Holdings, Inc. *		50,800		1,588,516
Medifast, Inc. *		25,700		482,646
Pool Corp.		33,772		804,449
				2,875,611
Computers & Business Equipment - 4.49%
Plexus Corp. *		61,920		1,559,146
Seagate Technology		196,240		2,717,924
Sykes Enterprises, Inc. *		56,800		1,192,232
				5,469,302
Correctional Facilities - 1.64%
Corrections Corp. of America *		101,000		2,003,840
Crude Petroleum & Natural Gas - 0.67%
St. Mary Land & Exploration Company		30,890		812,407
Drugs & Health Care - 1.33%
Almost Family, Inc. *		27,160		748,801
Seattle Genetics, Inc. *		70,720		866,320
				1,615,121
Educational Services - 0.68%
K12, Inc. *		40,150		826,689
Electrical Equipment - 1.87%
Polypore International, Inc. *		22,188		252,278
Regal-Beloit Corp.		44,640		2,029,334
				2,281,612
Electronics - 1.56%
Jabil Circuit, Inc.		173,350		1,898,182
Energy - 0.74%
Sunpower Corp., Class B *		42,210		902,872
Financial Services - 0.66%
GFI Group, Inc.		112,876	$	808,192
Food & Beverages - 0.75%
Green Mountain Coffee Roasters, Inc. *		15,260		918,499
Healthcare Products - 5.71%
Herbalife, Ltd.		57,300		1,735,044
Inverness Medical Innovations, Inc. *		32,820		1,168,392
Medicines Company *		65,410		498,424
Owens & Minor, Inc.		28,800		1,274,400
Volcano Corp. *		105,800		1,512,940
Zoll Medical Corp. *		42,730		768,286
				6,957,486
Healthcare Services - 4.37%
Health Net, Inc. *		80,710		1,236,477
Healthsouth Corp. *		87,280		1,362,441
ICON PLC, SADR *		78,350		1,693,927
Psychiatric Solutions, Inc. *		38,510		1,031,683
				5,324,528
Hotels & Restaurants - 1.56%
Buffalo Wild Wings, Inc. *		24,910		1,027,039
The Cheesecake Factory, Inc. *		47,707		876,378
				1,903,417
Household Products - 2.17%
Jarden Corp. *		107,320		2,613,242
Tempur-Pedic International, Inc. *		1,800		26,640
				2,639,882
Industrial Machinery - 0.79%
Pall Corp.		32,590		968,901
Insurance - 2.29%
Allied World Assurance Holdings, Ltd.		14,750		683,367
Assured Guaranty, Ltd.		49,110		977,289
Platinum Underwriters Holdings, Ltd.		31,030		1,124,838
				2,785,494
Internet Retail - 0.50%
Shutterfly, Inc. *		41,830		604,862
Internet Service Provider - 1.85%
Equinix, Inc. *		26,740		2,253,112
Internet Software - 0.86%
Vocus, Inc. *		62,200		1,048,692
Leisure Time - 5.45%
Bally Technologies, Inc. *		39,000		1,576,770
DreamWorks Animation SKG, Inc., Class A *		20,310		685,665
Life Time Fitness, Inc. *		63,115		1,964,139
RC2 Corp. *		95,870		1,505,159
WMS Industries, Inc. *		21,620		915,175
				6,646,908
Liquor - 0.80%
Central European Distribution Corp. *		30,240		973,728
Manufacturing - 1.04%
Pentair, Inc.		44,705		1,266,493
Office Furnishings & Supplies - 1.49%
Knoll, Inc.		40,400		389,052

The accompanying notes are an integral part of the financial statements.

243

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Office Furnishings & Supplies (continued)
OfficeMax, Inc.		125,960	$	1,424,608
				1,813,660
Petroleum Services - 0.75%
Complete Production Services, Inc. *		101,840		916,560
Pharmaceuticals - 6.26%
Alkermes, Inc. *		81,130		734,226
Amylin Pharmaceuticals, Inc. *		56,020		705,852
Auxilium Pharmaceuticals, Inc. *		29,200		840,668
Cubist Pharmaceuticals, Inc. *		40,670		841,056
Ligand Pharmaceuticals, Inc., Class B *		188,940		453,456
Onyx Pharmaceuticals, Inc. *		25,330		812,333
OSI Pharmaceuticals, Inc. *		32,150		1,074,453
Regeneron Pharmaceuticals, Inc. *		50,700		1,152,411
United Therapeutics Corp. *		11,110		1,016,676
				7,631,131
Publishing - 1.28%
VistaPrint, Ltd. *		37,720		1,563,117
Real Estate - 0.52%
DiamondRock Hospitality Company, REIT		91,920		629,652
Retail - 0.45%
FGX International Holdings, Ltd. *		38,290		552,908
Retail Trade - 2.98%
Aeropostale, Inc. *		25,430		995,584
Big Lots, Inc. *		39,700		1,009,174
Children’s Place Retail Stores, Inc. *		30,500		925,065
Lumber Liquidators, Inc. *		31,890		701,580
				3,631,403
Semiconductors - 3.36%
Cavium Networks, Inc. *		14,400		292,464
ON Semiconductor Corp. *		227,990		1,839,879
Skyworks Solutions, Inc. *		90,560		1,055,024
Triquint Semiconductor, Inc. *		123,680		905,338
				4,092,705
Software - 7.40%
Allscripts-Misys Healthcare Solutions, Inc. *		94,400		1,401,840
American Reprographics Company *		61,330		560,556
ArcSight, Inc. *		91,800		1,776,330
Red Hat, Inc. *		73,630		1,690,545
Riverbed Technology, Inc. *		58,450		1,126,916
Solera Holdings, Inc. *		63,150		1,663,371
Take-Two Interactive Software, Inc. *		75,380		791,490
				9,011,048
Telecommunications Equipment & Services - 4.53%
Atheros Communications, Inc. *		34,090		942,247
NeuStar, Inc., Class A *		78,160		1,811,749
Polycom, Inc. *		70,010		1,651,536
Starent Networks Corp. *		54,790		1,108,950
				5,514,482
Toys, Amusements & Sporting Goods - 1.10%
Marvel Entertainment, Inc. *		27,750		1,342,268
Transportation - 1.84%
Con-way, Inc.		34,690	$	1,448,654
Overseas Shipholding Group, Inc.		22,300		788,751
				2,237,405
Trucking & Freight - 0.66%
J.B. Hunt Transport Services, Inc.		28,670		803,620
TOTAL COMMON STOCKS (Cost $101,218,343)			$	124,229,396
Total Investments (Small Cap Growth Fund) (Cost $101,218,343) - 101.96%			$	124,229,396
Other assets and liabilities, net - (1.96)%				(2,388,565	)
TOTAL NET ASSETS - 100.00%			$	121,840,831

Small Cap Index Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 98.03%
Advertising - 0.18%
inVentiv Health, Inc. *		3,975	$	63,202
Marchex, Inc., Class B		2,834		12,130
ValueClick, Inc. *		10,143		103,966
				179,298
Aerospace - 1.31%
AAR Corp. *		4,491		76,392
Aerovironment, Inc. *		1,572		44,220
Argon ST, Inc. *		1,616		32,288
Astronics Corp. *		1,360		11,873
Cubic Corp.		1,802		64,007
Curtiss-Wright Corp.		5,220		170,015
Ducommun, Inc.		1,377		24,869
Esterline Technologies Corp. *		3,446		106,550
GenCorp, Inc. *		6,695		29,525
HEICO Corp. (a)		2,693		99,803
Herley Industries, Inc. *		1,816		22,173
Integral Systems, Inc. *		2,567		16,095
LMI Aerospace, Inc. *		1,087		10,011
Moog, Inc., Class A *		4,770		138,235
Orbital Sciences Corp., Class A *		6,564		97,081
Teledyne Technologies, Inc. *		4,168		140,712
Triumph Group, Inc.		1,944		84,564
Woodward Governor Company		6,992		146,762
				1,315,175
Agricultural Chemicals - 0.02%
China Green Agriculture, Inc. *		1,203		14,905
Agriculture - 0.28%
AgFeed Industries, Inc. * (a)		3,160		15,926
Alico, Inc.		528		15,655
Andersons, Inc.		2,121		69,781
Cadiz, Inc. *		1,776		21,525
Fresh Del Monte Produce, Inc. *		4,740		108,546
Griffin Land & Nurseries, Inc.		486		14,488

The accompanying notes are an integral part of the financial statements.

244

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Agriculture (continued)
Tejon Ranch Company *		1,321	$	33,778
				279,699
Air Travel - 0.76%
Airtran Holdings, Inc. * (a)		13,894		92,395
Alaska Air Group, Inc. *		4,220		106,471
Allegiant Travel Company * (a)		1,767		69,249
Hawaiian Holdings, Inc. *		6,191		45,318
JetBlue Airways Corp. * (a)		26,594		154,511
Republic Airways Holdings, Inc. *		4,298		39,585
SkyWest, Inc.		6,489		100,255
UAL Corp. * (a)		16,653		103,748
US Airways Group, Inc. * (a)		15,273		51,928
				763,460
Aluminum - 0.05%
Century Aluminum Company * (a)		5,288		54,096
Apparel & Textiles - 2.32%
American Apparel, Inc. *		3,704		13,705
Bebe Stores, Inc.		2,730		20,830
Brown Shoe, Inc.		4,872		36,540
Carter’s, Inc. *		6,534		164,395
Cherokee, Inc.		1,068		21,958
Columbia Sportswear Company		1,308		51,417
Crocs, Inc. * (a)		9,800		62,230
Deckers Outdoor Corp. *		1,520		103,816
G & K Services, Inc., Class A		2,219		52,146
G-III Apparel Group, Ltd. *		1,533		22,918
Gymboree Corp. *		3,383		151,525
Iconix Brand Group, Inc. *		8,272		142,113
Interface, Inc., Class A		5,649		37,340
Jones Apparel Group, Inc.		9,894		154,247
Jos. A. Bank Clothiers, Inc. * (a)		2,126		93,565
K-Swiss, Inc., Class A		3,133		30,202
Liz Claiborne, Inc. *		11,114		47,235
Lululemon Athletica, Inc. *		4,718		94,643
Maidenform Brands, Inc. *		2,198		35,476
Movado Group, Inc.		1,980		25,443
Oxford Industries, Inc.		1,505		21,070
Perry Ellis International, Inc. *		1,290		16,112
Quiksilver, Inc. *		15,055		42,455
Skechers U.S.A., Inc., Class A *		3,844		68,462
Stage Stores, Inc.		4,413		58,914
Steven Madden, Ltd. *		1,834		59,110
Timberland Company, Class A *		5,060		65,578
True Religion Apparel, Inc. *		2,956		66,894
Under Armour, Inc., Class A * (a)		3,806		90,849
Unifi, Inc. *		6,004		13,869
Unifirst Corp.		1,681		67,055
Volcom, Inc. *		2,258		31,996
Warnaco Group, Inc. *		5,291		201,323
Weyco Group, Inc.		914		20,656
Wolverine World Wide, Inc.		5,679		141,464
				2,327,551
Auto Parts - 0.62%
American Axle & Manufacturing Holdings, Inc. (a)		5,027		31,067
Amerigon, Inc. *		2,702		17,185
ArvinMeritor, Inc.		8,585		62,756
Dana Holding Corp. *		11,609		60,715
Dorman Products, Inc. *		1,387		19,501
Exide Technologies *		5,773		41,046
Federal Signal Corp.		5,744		41,070
Fuel Systems Solutions, Inc. *		1,595		53,464
Miller Industries, Inc. *		1,522		15,403
Modine Manufacturing Company		3,870		32,779
Standard Motor Products, Inc.		1,903		23,559
Superior Industries International, Inc.		2,721		38,693
Tenneco, Inc. *		5,471		85,895
The Pep Boys - Manny, Moe & Jack		5,632		50,294
Titan International, Inc. (a)		4,205		34,943
Wonder Auto Technology, Inc. *		1,686		14,921
				623,291
Auto Services - 0.30%
Avis Budget Group, Inc. *		11,845		115,252
Dollar Thrifty Automotive Group, Inc. *		2,533		50,255
Lithia Motors, Inc., Class A		1,966		25,184
Midas, Inc. *		1,899		17,167
Monro Muffler Brake, Inc.		2,017		51,998
RSC Holdings, Inc. * (a)		5,766		41,688
				301,544
Automobiles - 0.20%
Americas Car Mart, Inc. *		1,234		25,420
Asbury Automotive Group, Inc. *		3,669		45,863
Group 1 Automotive, Inc.		2,790		78,594
Rush Enterprises, Inc., Class A *		3,871		54,233
				204,110
Banking - 6.67%
1st Source Corp.		1,894		30,683
Abington Bancorp, Inc.		3,073		24,830
Alliance Financial Corp.		663		18,166
American National Bankshares, Inc.		1,002		21,763
Ameris Bancorp		1,949		12,571
Ames National Corp.		842		20,435
Arrow Financial Corp.		1,076		29,278
Astoria Financial Corp.		9,949		102,475
BancFirst Corp.		805		29,447
Banco Latinoamericano de Exportaciones, S.A.		3,241		46,055
Bancorp Rhode Island, Inc.		944		24,572
Bank Mutual Corp.		5,672		49,857
Bank of Marin Bancorp		757		23,626
Bank of the Ozarks, Inc.		1,588		39,605
BankFinancial Corp.		2,908		28,527
Bar Harbor Bankshares		505		17,018
Beneficial Mutual Bancorp, Inc. *		4,127		36,689
Berkshire Hill Bancorp, Inc.		1,693		38,109
Boston Private Financial Holdings, Inc.		7,963		39,974
Bridge Bancorp, Inc.		905		23,910
Brookline Bancorp, Inc.		7,058		73,686
Bryn Mawr Bank Corp.		994		17,643
Camden National Corp.		902		29,180
Capital City Bank Group, Inc. (a)		1,479		21,638

The accompanying notes are an integral part of the financial statements.

245

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking (continued)
Cardinal Financial Corp.		3,595	$	28,400
Cathay General Bancorp (a)		5,829		53,860
Center Bancorp, Inc. (a)		1,874		16,997
Central Pacific Financial Corp. (a)		3,590		9,980
Chemical Financial Corp.		2,546		53,288
Citizens & Northern Corp. (a)		1,144		20,912
Citizens Holding Company *		624		16,318
Citizens Republic Banking Corp., Inc. *		15,666		11,749
CNB Financial Corp./PA (a)		1,225		19,318
CoBiz, Inc.		3,798		17,965
Colonial Bancgroup, Inc. * (a)		23,706		1,873
Columbia Banking System, Inc.		2,194		36,004
Community Bank Systems, Inc.		3,811		67,950
Community Trust Bancorp, Inc.		1,877		50,229
CVB Financial Corp. (a)		9,816		68,810
Danvers Bancorp, Inc.		2,439		31,366
Dime Community Bancshares		3,257		36,478
Eagle Bancorp, Inc. *		1,514		13,853
East West Bancorp, Inc.		10,654		98,123
Enterprise Financial Services Corp.		1,588		17,865
ESB Financial Corp.		1,647		22,070
ESSA Bancorp, Inc.		2,194		27,776
F.N.B. Corp.		13,052		92,408
Farmers Capital Bank Corp.		796		14,559
Financial Institutions, Inc.		1,277		15,452
First BanCorp (PR)		9,392		29,960
First Bancorp, Inc.		1,074		20,019
First Bancorp		1,792		31,432
First Busey Corp. (a)		3,534		21,981
First Commonwealth Financial Corp.		9,953		61,310
First Community Bancshares, Inc.		1,788		22,386
First Defiance Financial Corp.		1,216		20,234
First Financial BanCorp		4,342		36,646
First Financial Bankshares, Inc. (a)		2,392		119,217
First Financial Corp.		1,385		41,785
First Financial Holdings, Inc.		1,524		27,341
First Merchants Corp.		2,752		19,539
First Midwest Bancorp, Inc.		5,726		58,749
First of Long Island Corp.		818		23,346
First South Bancorp, Inc.		990		12,127
FirstMerit Corp.		9,424		169,342
Flushing Financial Corp.		2,801		36,833
German American Bancorp		1,506		24,563
Glacier Bancorp, Inc. (a)		7,098		105,831
Great Southern Bancorp, Inc. (a)		1,270		26,734
Guaranty Bancorp *		6,887		11,708
Hancock Holding Company (a)		2,731		104,625
Harleysville National Corp.		5,063		29,163
Heartland Financial USA, Inc. (a)		1,607		24,057
Home Bancshares, Inc. (a)		1,743		35,296
Home Federal Bancorp, Inc.		2,342		26,348
IBERIABANK Corp.		2,362		114,463
Independent Bank Corp.		2,432		56,349
International Bancshares Corp.		6,048		93,381
Investors Bancorp, Inc. *		5,596		51,707
Lakeland Bancorp, Inc.		2,463		21,822
Lakeland Financial Corp.		1,433		28,502
MainSource Financial Group, Inc.		2,740		17,646
MB Financial, Inc.		4,087		56,605
Nara Bancorp, Inc.		3,000		26,250
NASB Financial, Inc. (a)		457		14,066
National Penn Bancshares, Inc.		9,733		54,505
NBT Bancorp, Inc.		3,981		89,971
NewAlliance Bancshares, Inc.		12,447		146,377
Northfield Bancorp, Inc.		2,519		30,858
Northrim Bancorp, Inc.		981		14,813
Northwest Bancorp, Inc.		2,071		42,456
OceanFirst Financial Corp.		1,605		20,865
Ohio Valley Banc Corp.		715		20,678
Old National Bancorp		7,660		81,502
Oriental Financial Group, Inc.		2,744		37,154
Orrstown Financial Services, Inc.		628		22,941
Pacific Capital Bancorp (a)		5,917		14,378
Pacific Continental Corp.		2,009		19,206
PacWest Bancorp		2,885		56,863
Park National Corp.		1,264		75,676
Peapack Gladstone Financial Corp.		1,112		18,782
Peoples Bancorp, Inc.		1,282		20,268
Pinnacle Financial Partners, Inc. *		3,880		58,472
PremierWest Bancorp		2,614		7,476
PrivateBancorp, Inc.		4,040		97,404
Prosperity Bancshares, Inc.		5,285		182,491
Provident Financial Services, Inc.		7,052		77,713
Provident New York Bancorp		4,041		37,218
Renasant Corp.		2,524		38,415
Republic Bancorp, Inc., Class A		1,105		23,470
S & T Bancorp, Inc. (a)		2,813		38,960
S.Y. Bancorp, Inc. (a)		1,420		31,567
Sandy Spring Bancorp, Inc.		2,019		31,718
SCBT Financial Corp.		1,525		39,116
Shore Bancshares, Inc.		1,158		20,392
Sierra Bancorp		947		12,103
Signature Bank *		4,071		123,596
Simmons First National Corp., Class A		1,662		46,819
Smithtown Bancorp, Inc.		1,958		26,511
South Financial Group, Inc.		18,897		33,259
Southside Bancshares, Inc.		1,595		34,484
Southwest Bancorp, Inc.		1,934		25,007
State Bancorp, Inc.		1,953		15,780
StellarOne Corp.		2,732		38,193
Sterling Bancorp		2,441		18,552
Sterling Bancshares, Inc.		9,583		76,185
Sterling Financial Corp. (a)		6,355		13,473
Suffolk Bancorp		1,178		34,103
Susquehanna Bancshares, Inc. (a)		10,126		59,136
SVB Financial Group * (a)		3,813		151,567
Texas Capital Bancshares, Inc. *		4,097		67,805
Tompkins Trustco, Inc.		1,011		44,181
Tower Bancorp, Inc.		513		13,738
TowneBank/Portsmouth VA (a)		2,388		30,184
Trico Bancshares		1,707		28,917
TrustCo Bank Corp., NY (a)		9,097		56,583

The accompanying notes are an integral part of the financial statements.

246

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking (continued)
Trustmark Corp. (a)		6,570	$	125,027
UCBH Holdings, Inc. (a)		14,266		18,831
Umpqua Holdings Corp.		7,019		72,366
Union Bankshares Corp.		1,661		27,921
United Bankshares, Inc. (a)		4,408		86,529
United Community Banks, Inc. * (a)		5,137		34,623
United Financial Bancorp, Inc.		2,450		30,111
United Security Bancshares, Inc.		875		20,720
Univest Corp. of Pennsylvania		1,565		32,505
ViewPoint Financial Group		1,590		19,907
Washington Banking Company		1,920		18,874
Washington Trust Bancorp, Inc. (a)		1,678		29,281
Webster Financial Corp.		6,120		79,988
WesBanco, Inc.		2,767		40,620
WestAmerica Bancorp		3,328		171,159
Western Alliance Bancorp *		5,277		38,680
Westfield Financial, Inc.		4,082		37,350
Wilshire Bancorp, Inc.		2,442		20,220
Wintrust Financial Corp.		2,758		76,314
WSFS Financial Corp.		922		25,558
Yadkin Valley Financial Corp.		2,038		12,656
				6,685,824
Biotechnology - 2.34%
Acorda Therapeutics, Inc. *		4,416		99,890
Affymetrix, Inc. *		8,224		63,489
Alnylam Pharmaceuticals, Inc. *		4,180		93,298
AMAG Pharmaceuticals, Inc. * (a)		1,976		81,095
Arena Pharmaceuticals, Inc. *		10,744		49,960
Arqule, Inc. *		4,977		26,975
ARYx Therapeutics, Inc. *		2,723		9,367
Bio Reference Labs, Inc. *		1,370		45,539
BioMimetic Therapeutics, Inc. *		1,704		20,056
Cardium Therapeutics, Inc. *		4,734		8,900
Cell Therapeutics, Inc. * (a)		62,312		102,815
China-Biotics, Inc. *		938		12,100
Cytokinetics, Inc. *		5,584		17,701
Exelixis, Inc. * (a)		12,448		70,829
Facet Biotech Corp. *		2,947		29,588
Genomic Health, Inc. *		1,687		33,757
Geron Corp. * (a)		10,314		73,229
GTx, Inc. *		2,245		21,126
Human Genome Sciences, Inc. *		18,790		371,666
Idera Pharmaceuticals, Inc. *		2,673		20,288
Immucor, Inc. *		8,173		147,850
Insmed, Inc. *		14,871		13,087
Integra LifeSciences Holdings Corp. *		2,195		74,169
Intermune, Inc. * (a)		4,464		67,764
Lexicon Genetics, Inc. *		9,918		14,976
Martek Biosciences Corp. * (a)		3,848		94,468
Medarex, Inc. *		14,910		238,560
Medivation, Inc. *		3,342		84,619
Micromet, Inc. *		4,878		30,927
Momenta Pharmaceuticals, Inc. *		4,110		40,689
Nabi Biopharmaceuticals *		6,845		20,877
Nektar Therapeutics *		10,852		89,963
Neurocrine Biosciences, Inc. *		5,093		15,228
OncoGenex Pharmaceutical, Inc. *		530		21,285
Orexigen Therapeutics, Inc. *		2,359		18,683
Osiris Therapeutics, Inc. * (a)		2,056		30,059
Progenics Pharmaceuticals, Inc. *		3,237		17,059
Protalix BioTherapeutics, Inc. *		3,902		24,973
Sangamo Biosciences, Inc. *		4,836		33,900
StemCells, Inc. * (a)		12,791		20,849
				2,351,653
Broadcasting - 0.19%
Belo Corp., Class A		10,412		34,776
CKX, Inc. *		6,477		40,870
Fisher Communications, Inc. *		811		16,731
Journal Communications, Inc.		5,062		18,729
Mediacom Communications Corp., Class A *		4,775		24,018
Sinclair Broadcast Group, Inc., Class A		5,847		16,547
World Wrestling Entertainment, Inc., Class A		2,707		38,602
				190,273
Building Materials & Construction - 1.06%
Apogee Enterprises, Inc.		3,305		43,626
Argan, Inc. *		1,095		15,056
Beacon Roofing Supply, Inc. *		5,311		89,331
Broadwind Energy, Inc. * (a)		3,641		27,526
Builders FirstSource, Inc. * (a)		2,146		16,503
Drew Industries, Inc. *		2,161		44,473
Dycom Industries, Inc. *		4,606		51,679
EMCOR Group, Inc. *		7,639		176,996
Granite Construction, Inc.		3,959		127,084
Griffon Corp. *		5,140		54,330
Interline Brands, Inc. *		3,765		62,913
LSI Industries, Inc.		2,540		18,796
MYR Group, Inc. *		2,050		42,025
NCI Building Systems, Inc. * (a)		2,603		7,002
Orion Marine Group, Inc. *		2,508		51,289
Quanex Building Products Corp.		4,433		59,713
Sterling Construction Company, Inc. *		1,685		27,128
Texas Industries, Inc.		2,732		108,624
Trex Company, Inc. *		1,823		34,655
				1,058,749
Business Services - 5.34%
3PAR, Inc. * (a)		3,203		28,314
ABM Industries, Inc.		5,364		120,314
Acacia Research - Acacia Technologies *		3,873		34,779
Acxiom Corp. *		7,898		72,030
Administaff, Inc.		2,485		59,988
AMERCO, Inc. *		1,062		48,321
APAC Customer Services, Inc. *		2,897		15,876
Arbitron, Inc.		3,131		57,360
Ariba, Inc. *		10,139		116,193
Black Box Corp.		2,069		51,808
Bowne & Company, Inc.		3,305		23,135
CDI Corp.		1,543		23,438
China Security & Surveillance Technology, Inc. *		3,673		23,874
Chindex International, Inc. *		1,619		21,921
Coinstar, Inc. *		3,500		115,535
Compass Diversified Trust		2,906		29,438

The accompanying notes are an integral part of the financial statements.

247

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
comScore, Inc. *		2,570	$	35,749
COMSYS IT Partners, Inc. *		1,921		14,369
Constant Contact, Inc. * (a)		2,806		58,449
Core-Mark Holding Company, Inc. *		1,235		35,457
Corporate Executive Board Company		3,975		95,599
CoStar Group, Inc. * (a)		2,313		87,778
CRA International, Inc. *		1,316		36,756
CSG Systems International, Inc. *		4,128		62,209
Deluxe Corp.		5,923		98,973
DG Fastchannel, Inc. *		2,108		36,553
Diamond Management & Technology Consultants, Inc.		3,279		20,527
Electro Rent Corp.		2,281		23,243
Ennis Business Forms, Inc.		3,134		42,716
Euronet Worldwide, Inc. *		5,652		133,500
Exponent, Inc. *		1,631		46,125
EZCORP, Inc., Class A *		5,348		71,503
Fair Isaac Corp.		5,644		125,861
Forrester Research, Inc. *		1,864		43,879
Gartner Group, Inc., Class A *		6,830		113,788
Global Cash Access, Inc. *		4,732		34,307
Global Sources, Ltd. *		1,910		13,103
GP Strategies Corp. *		2,388		17,552
GSI Commerce, Inc. *		2,919		50,615
Harte-Hanks, Inc.		4,403		57,415
Heidrick & Struggles International, Inc. (a)		2,037		42,818
Hill International, Inc. *		3,140		18,652
Huron Consulting Group, Inc. *		2,411		45,375
ICF International, Inc. *		1,042		28,499
infoGROUP, Inc. *		3,919		24,180
Informatica Corp. *		10,072		180,591
Insight Enterprises, Inc. *		5,342		61,273
Jackson Hewitt Tax Service, Inc.		3,487		19,492
Kelly Services, Inc., Class A		3,146		36,116
Kendle International, Inc. *		1,863		24,480
Kenexa Corp. *		2,672		32,759
Kforce, Inc. *		3,437		38,494
Korn/Ferry International *		5,264		72,801
MAXIMUS, Inc.		2,026		84,383
McGrath Rentcorp	��	2,858		56,217
Michael Baker Corp. *		941		31,505
MPS Group, Inc. *		10,842		106,902
Navigant Consulting Company *		5,828		73,374
Net 1 UEPS Technologies, Inc. *		4,456		85,065
On Assignment, Inc. *		4,729		18,916
OraSure Technologies, Inc. *		6,217		16,413
Parexel International Corp. *		6,673		85,615
PC Mall, Inc. *		1,493		11,362
Perot Systems Corp., Class A *		9,999		166,483
PHH Corp. *		6,354		135,086
Pre-Paid Legal Services, Inc. * (a)		830		38,047
Resources Connection, Inc. *		5,251		80,918
Rollins, Inc.		5,100		91,035
ScanSource, Inc. *		3,090		86,489
Schawk, Inc., Class A		2,076		23,521
Seachange International, Inc. *		3,758		33,596
SonicWALL, Inc. *		6,359		47,629
Sotheby’s (a)		7,750		122,915
Sourcefire, Inc. *		2,526		47,994
Spherion Corp. *		6,078		32,943
SRA International, Inc., Class A *		4,794		95,257
Standard Parking Corp. *		1,021		17,510
Stanley, Inc. *		1,343		34,448
StarTek, Inc. *		1,552		11,997
SuccessFactors, Inc. *		4,275		50,744
SYNNEX Corp. * (a)		2,235		66,268
Syntel, Inc. (a)		1,462		58,582
TeleTech Holdings, Inc. *		3,749		63,958
Tetra Tech, Inc. *		6,974		206,012
The Hackett Group, Inc. *		5,571		14,596
Tier Technologies Inc., Class B *		2,502		18,990
TrueBlue, Inc. *		5,094		69,278
Tyler Technologies, Inc. *		3,685		56,123
Viad Corp.		2,453		44,326
Volt Information Sciences, Inc. *		1,649		16,655
VSE Corp.		567		19,454
Watson Wyatt Worldwide, Inc., Class A		4,913		214,698
				5,359,184
Cable & Television - 0.19%
Knology, Inc. *		3,595		26,028
Lin TV Corp. *		3,444		12,054
LodgeNet Entertainment Corp. *		2,447		17,080
Outdoor Channel Holdings, Inc. *		1,999		13,313
TiVo, Inc. *		12,042		118,132
				186,607
Cellular Communications - 0.43%
Brightpoint, Inc. *		5,912		43,394
iPCS, Inc. *		2,028		32,022
Novatel Wireless, Inc. *		3,597		34,711
RF Micro Devices, Inc. *		30,839		144,944
Syniverse Holdings, Inc. *		7,898		141,137
USA Mobility, Inc. *		2,833		36,064
				432,272
Chemicals - 2.04%
A. Schulman, Inc.		2,663		53,500
Aceto Corp.		3,315		22,177
Albany Molecular Research, Inc. *		2,741		22,092
American Vanguard Corp.		2,408		21,094
Arch Chemicals, Inc.		2,939		85,878
Balchem Corp.		2,161		53,809
Calgon Carbon Corp. *		6,374		91,148
Cambrex Corp. *		3,836		20,983
Ferro Corp.		5,425		42,749
H.B. Fuller Company		5,635		111,235
Hawkins, Inc.		1,175		24,969
ICO, Inc. *		3,820		15,662
Innophos Holdings, Inc.		2,027		38,695
Innospec, Inc.		2,828		38,687
Landec Corp. *		3,609		22,051
LSB Industries, Inc. *		2,037		31,451
Metabolix, Inc. *		2,297		22,281

The accompanying notes are an integral part of the financial statements.

248

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Chemicals (continued)
Minerals Technologies, Inc.		2,181	$	97,796
Newmarket Corp.		1,162		96,585
Olin Corp.		8,996		150,593
OM Group, Inc. *		3,532		96,106
Omnova Solutions, Inc. *		5,266		24,856
PolyOne Corp. *		10,681		54,473
Quaker Chemical Corp.		1,369		28,366
Rockwood Holdings, Inc. *		5,716		116,435
Sensient Technologies Corp.		5,701		148,625
ShengdaTech, Inc. * (a)		3,508		20,732
Solutia, Inc. *		10,960		134,041
Spartech Corp.		3,572		41,221
Stepan Company		866		46,816
Valence Technology, Inc. * (a)		6,108		9,162
W.R. Grace & Company *		8,387		140,315
Westlake Chemical Corp. (a)		2,226		53,513
Zep, Inc.		2,536		40,525
Zoltek Companies, Inc. *		3,379		31,492
				2,050,113
Coal - 0.16%
International Coal Group, Inc. *		10,569		32,130
James River Coal Company *		3,227		53,697
Patriot Coal Corp. *		7,432		65,848
Westmoreland Coal Company *		1,340		11,390
				163,065
Colleges & Universities - 0.18%
Corinthian Colleges, Inc. *		9,321		178,684
Commercial Services - 1.16%
Cardtronics, Inc. *		1,747		13,766
CBIZ, Inc. *		5,192		37,175
Cenveo, Inc. * (a)		5,593		28,580
Chemed Corp.		2,604		113,378
Computer Task Group, Inc. *		2,105		13,009
DynCorp International, Inc. *		2,893		49,702
Exlservice Holdings, Inc. *		1,754		21,048
First Advantage Corp., Class A *		1,362		23,876
Great Lakes Dredge & Dock Company		4,664		30,503
HMS Holdings Corp. *		2,996		112,679
Live Nation, Inc. *		9,790		68,824
Mac-Gray Corp. *		1,414		16,954
Medifast, Inc. *		1,515		28,452
Odyssey Marine Exploration, Inc. * (a)		7,642		14,214
Perficient, Inc. *		3,496		27,129
Pool Corp.		5,638		134,297
Providence Service Corp. *		1,266		14,382
Riskmetrics Group, Inc. *		2,513		39,102
Team, Inc. *		2,336		40,716
Ticketmaster Entertainment, Inc. *		4,448		43,412
TNS, Inc. *		2,921		75,829
Transcend Services, Inc. *		894		14,215
United Rentals, Inc. *		7,097		65,221
Wright Express Corp. *		4,434		139,760
				1,166,223
Computer Services - 0.02%
Dynamics Research Corp. *		1,404	$	19,347
Computers & Business Equipment - 3.14%
3Com Corp. *		44,930		195,446
3D Systems Corp. *		2,265		18,528
Acme Packet, Inc. *		4,584		37,405
Agilysys, Inc.		2,154		13,656
Avocent Corp. *		5,159		84,195
Benchmark Electronics, Inc. *		7,570		124,148
BigBand Networks, Inc. *		4,068		15,825
Blue Coat Systems, Inc. *		4,585		89,912
CACI International, Inc., Class A *		3,441		158,148
Cogent, Inc. *		4,972		52,206
Compellent Technologies, Inc. * (a)		1,883		28,094
Cray, Inc. *		4,037		29,510
Digi International, Inc. *		3,058		26,207
Echelon Corp. * (a)		3,815		43,338
Electronics for Imaging, Inc. *		5,805		61,765
EMS Technologies, Inc. *		1,858		34,819
Extreme Networks, Inc. *		10,668		25,923
Falconstor Software, Inc. *		4,095		20,721
Furmanite Corp. *		4,860		17,788
Hurco Companies, Inc. *		925		15,420
Immersion Corp. *		3,554		13,505
Innodata Isogen, Inc. *		2,897		15,064
Intermec, Inc. *		7,193		102,284
Internap Network Services Corp. *		6,076		18,350
Isilon Systems, Inc. *		3,003		17,267
Ixia *		3,607		22,039
Jack Henry & Associates, Inc.		9,633		224,545
L-1 Identity Solutions, Inc. *		8,710		62,451
Limelight Networks, Inc. *		4,031		13,464
Liveperson, Inc. *		5,179		21,337
MTS Systems Corp.		2,003		53,160
NCI, Inc. *		799		23,451
Ness Technologies, Inc. *		4,763		28,769
Netezza Corp. *		5,456		52,378
NETGEAR, Inc. *		4,024		68,730
Netscout Systems, Inc. *		2,970		34,036
Palm, Inc. * (a)		15,969		212,867
Parametric Technology Corp. *		13,369		177,808
Phoenix Technology, Ltd. *		3,854		13,990
Plexus Corp. *		4,589		115,551
Quantum Corp. *		25,153		30,938
Radiant Systems, Inc. *		3,154		33,811
RadiSys Corp. *		2,782		20,309
Rimage Corp. *		1,375		22,137
Sigma Designs, Inc. * (a)		3,152		44,538
Silicon Graphics International Corp. *		3,712		20,379
Silicon Storage Technology, Inc. *		10,117		18,514
Smart Modular Technologies (WWH), Inc. *		4,739		18,150
Standard Microsystems Corp. *		2,569		59,806
STEC, Inc. * (a)		2,861		115,956
Stratasys, Inc. *		2,404		34,594
Super Micro Computer, Inc. *		2,687		21,415
Sykes Enterprises, Inc. *		4,029		84,569
Synaptics, Inc. * (a)		3,976		102,501

The accompanying notes are an integral part of the financial statements.

249

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Computers & Business Equipment (continued)
Trident Microsystems, Inc. *		8,152	$	19,646
Unisys Corp. *		43,097		105,157
Virtusa Corp. *		1,705		17,152
				3,153,672
Construction & Mining Equipment - 0.33%
Astec Industries, Inc. *		2,108		53,396
Carbo Ceramics, Inc. (a)		2,208		95,054
Gulf Islands Fabrication, Inc.		1,561		23,368
Kaman Corp., Class A		3,046		63,144
Layne Christensen Company *		2,329		60,088
Matrix Service Company *		3,174		34,977
				330,027
Construction Materials - 0.78%
Ameron International Corp.		1,080		87,448
Applied Industrial Technologies, Inc.		4,894		100,963
Clarcor, Inc.		5,853		187,647
Columbus McKinnon Corp. *		2,333		28,696
Comfort Systems USA, Inc.		4,570		54,246
Louisiana-Pacific Corp. *		11,925		89,795
Simpson Manufacturing Company, Inc.		4,383		112,643
Standex International Corp.		1,626		27,821
Universal Forest Products, Inc.		2,200		90,860
				780,119
Containers & Glass - 0.29%
Bway Holding Company *		846		13,113
Graphic Packaging Holding Company *		12,408		26,429
Mobile Mini, Inc. *		4,159		73,739
Silgan Holdings, Inc.		3,085		149,993
TAL International Group, Inc.		1,866		22,989
				286,263
Correctional Facilities - 0.14%
Cornell Corrections, Inc. *		1,399		28,106
The Geo Group, Inc. *		5,978		109,517
				137,623
Cosmetics & Toiletries - 0.58%
Bare Escentuals, Inc. *		7,716		71,604
Chattem, Inc. *		2,262		138,525
Elizabeth Arden, Inc. *		2,954		30,426
Helen of Troy, Ltd. *		3,459		74,784
Intermediate Parfums, Inc.		1,968		18,991
Nu Skin Enterprises, Inc., Class A		5,749		99,170
Revlon, Inc. *		2,416		10,969
Sally Beauty Holdings, Inc. *		10,877		77,335
Steiner Leisure, Ltd. *		1,730		57,471
				579,275
Crude Petroleum & Natural Gas - 1.16%
Allis-Chalmers Energy, Inc. *		7,207		23,639
Apco Oil and Gas International, Inc.		1,022		22,484
Arena Resources, Inc. *		4,422		135,225
Bill Barrett Corp. *		4,443		129,913
Carrizo Oil & Gas, Inc. * (a)		3,283		63,460
Contango Oil & Gas Company *		1,441		64,759
Endeavour International Corp. *		13,484		14,967
FX Energy, Inc. * (a)		5,302		17,974
Geokinetics, Inc. *		734		12,038
GMX Resources, Inc. *		2,934		31,071
Goodrich Petroleum Corp. * (a)		2,847		68,157
Gran Tierra Energy, Inc. *		23,892		95,568
Gulfport Energy Corp. *		3,065		22,988
Harvest Natural Resources, Inc. *		4,302		22,241
Isramco, Inc. * (a)		126		21,419
Northern Oil And Gas, Inc. *		3,478		22,224
Oilsands Quest, Inc. * (a)		22,509		19,808
Panhandle Oil and Gas, Inc.		985		23,817
Parallel Petroleum Corp. *		5,729		10,713
Penn Virginia Corp.		5,272		101,012
Petroquest Energy, Inc. *		6,164		25,642
SulphCo, Inc. * (a)		8,815		14,016
Swift Energy Company *		3,648		74,310
Toreador Resources Corp. *		2,545		12,852
VAALCO Energy, Inc. *		7,135		33,677
Venoco, Inc. *		2,138		17,211
W&T Offshore, Inc.		3,992		39,441
Western Refining, Inc. *		3,807		23,108
				1,163,734
Distribution/Wholesale - 0.02%
Rentrak Corp. *		1,258		20,002
Domestic Oil - 0.50%
Atlas America, Inc.		3,994		88,587
Berry Petroleum Company, Class A		4,971		112,196
Brigham Exploration Company *		9,697		63,515
Clayton Williams Energy, Inc. *		774		15,325
Delta Petroleum Corp. * (a)		20,716		37,289
McMoran Exploration Company * (a)		8,926		74,443
Natural Gas Services Group, Inc. *		1,490		21,292
Stone Energy Corp. *		3,987		50,874
Syntroleum Corp. *		7,515		19,689
Warren Resources, Inc. *		7,246		17,753
				500,963
Drugs & Health Care - 1.43%
Abaxis, Inc. * (a)		2,535		67,431
Abiomed, Inc. *		3,724		30,835
Accelrys, Inc. *		3,799		21,806
Almost Family, Inc. *		823		22,690
Ardea Biosciences, Inc. * (a)		1,665		29,537
Ariad Pharmaceuticals, Inc. *		10,650		23,323
China Sky One Medical, Inc. * (a)		1,245		16,135
Curis, Inc. *		8,633		18,216
Cytori Therapeutics, Inc. * (a)		3,240		9,817
DepoMed, Inc. *		6,151		19,191
Durect Corp. *		9,678		23,614
Dyax Corp. *		7,877		28,672
Hansen Medical, Inc. *		3,123		10,649
I-Flow Corp. *		2,731		24,579
Immunogen, Inc. *		5,926		43,201
Immunomedics, Inc. *		7,627		42,025
Impax Laboratories, Inc. *		7,136		54,162

The accompanying notes are an integral part of the financial statements.

250

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Drugs & Health Care (continued)
Invacare Corp.		3,389	$	73,406
Landauer, Inc.		1,109		61,039
Luminex Corp. *		4,836		73,894
Maxygen, Inc. *		2,949		20,879
Medical Action, Inc. *		1,767		22,141
Meridian Bioscience, Inc.		4,710		113,511
Molina Healthcare, Inc. *		1,543		31,246
Nutraceutical International Corp. *		1,621		18,641
Pain Therapeutics, Inc. *		4,248		21,665
Quidel Corp. *		3,004		46,382
Res-Care, Inc. *		2,949		42,790
Seattle Genetics, Inc. *		8,294		101,602
Synutra International, Inc. * (a)		2,062		31,899
Vivus, Inc. *		8,108		50,189
West Pharmaceutical Services, Inc.		3,786		152,159
XenoPort, Inc. *		3,488		63,586
Zymogenetics, Inc. * (a)		4,352		25,590
				1,436,502
Educational Services - 0.42%
American Public Education, Inc. *		2,165		75,017
Bridgepoint Education, Inc. *		1,634		30,017
Capella Education Company * (a)		1,705		108,012
ChinaCast Education Corp. *		3,679		21,816
Grand Canyon Education, Inc. *		1,882		32,747
K12, Inc. * (a)		2,803		57,714
Leapfrog Enterprises, Inc., Class A *		4,509		17,720
Lincoln Educational Services Corp. * (a)		1,201		26,638
Universal Technical Institute, Inc. *		2,366		47,628
				417,309
Electrical Equipment - 1.90%
A.O. Smith Corp.		2,518		95,810
Aaon, Inc.		1,526		31,863
American Science & Engineering, Inc.		1,077		66,332
Anaren, Inc. *		1,841		29,603
Anixter International, Inc. * (a)		3,442		120,745
Audiovox Corp., Class A *		2,261		15,963
AZZ, Inc. * (a)		1,433		49,324
Baldor Electric Company		5,381		151,045
China BAK Battery, Inc. * (a)		4,594		13,047
Cohu, Inc.		2,843		33,746
DTS, Inc. *		2,032		54,458
Encore Wire Corp.		2,166		51,291
GrafTech International, Ltd. *		13,918		198,053
Greatbatch, Inc. *		2,736		58,906
Houston Wire & Cable Company		2,201		25,334
Littelfuse, Inc. *		2,536		63,501
Methode Electronics, Inc.		4,508		38,904
Polypore International, Inc. *		2,668		30,335
Powell Industries, Inc. *		938		35,475
Power-One, Inc. *		10,795		14,034
Regal-Beloit Corp. (a)		4,109		186,795
Universal Electronics, Inc. *		1,647		30,997
US Geothermal, Inc. *		8,177		11,693
Varian, Inc. *		3,335		170,819
Vicor Corp. *		2,335		17,162
W.H. Brady Company, Class A		5,545		164,298
Watsco, Inc.		2,741		144,807
				1,904,340
Electrical Utilities - 1.91%
Allete, Inc.		3,066		103,661
Avista Corp.		6,342		123,796
Black Hills Corp.		4,481		114,624
Central Vermont Public Service Corp.		1,642		30,049
CH Energy Group, Inc.		1,873		85,709
Cleco Corp.		6,938		169,426
Connecticut Water Service, Inc.		1,357		30,044
El Paso Electric Company *		5,364		90,866
Empire District Electric Company		4,114		74,669
EnerNOC, Inc. *		1,388		37,393
IDACORP, Inc.		5,403		153,877
MGE Energy, Inc.		2,765		97,964
NorthWestern Corp.		4,204		100,854
Otter Tail Corp.		4,142		97,710
Pike Electric Corp. *		1,946		21,620
PNM Resources, Inc.		10,046		117,337
Portland General Electric Company		8,578		167,443
Tutor Perini Corp. * (a)		3,005		58,958
UIL Holding Corp.		3,462		89,804
Unisource Energy Corp.		4,121		120,498
Unitil Corp.		1,527		33,319
				1,919,621
Electronics - 1.82%
Adaptec, Inc. *		14,445		42,468
Advanced Battery Technologies, Inc. * (a)		5,648		22,761
Anadigics, Inc. *		7,579		29,179
Analogic Corp.		1,534		54,534
Axsys Technologies, Inc. *		1,133		61,182
Bel Fuse, Inc., Class B		1,325		22,393
Belden, Inc.		5,409		113,210
Checkpoint Systems, Inc. *		4,529		75,498
Cogo Group, Inc. *		3,146		16,988
CTS Corp.		3,986		35,316
Cynosure, Inc. *		1,386		15,177
Daktronics, Inc. (a)		3,846		31,037
Electro Scientific Industries, Inc. *		3,290		40,401
Ener1, Inc. * (a)		5,600		35,728
Enersys *		4,684		93,165
FEI Company *		4,372		103,442
Franklin Electric, Inc.		2,693		84,856
Harbin Electric, Inc. *		1,294		16,059
II-VI, Inc. *		2,929		78,380
Imation Corp.		3,508		30,169
IPG Photonics Corp. *		2,823		34,215
LaBarge, Inc. *		1,568		16,197
Maxwell Technologies, Inc. * (a)		2,662		36,017
Measurement Specialties, Inc. *		2,042		21,604
Mentor Graphics Corp. *		10,990		97,042
Mercury Computer Systems, Inc. *		2,621		24,952
Multi-Fineline Electronix, Inc. *		1,142		31,565
Newport Corp. *		4,391		31,132

The accompanying notes are an integral part of the financial statements.

251

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Electronics (continued)
NVE Corp. *		546	$	29,047
OSI Systems, Inc. *		1,877		31,665
Park Electrochemical Corp.		2,392		51,524
Rogers Corp. *		1,830		47,763
Spectrum Control, Inc. *		1,911		17,543
Stoneridge, Inc. *		2,011		10,699
Supertex, Inc. *		1,352		34,936
Sycamore Networks, Inc. *		21,762		66,157
Taser International, Inc. *		7,331		33,356
Technitrol, Inc.		4,841		39,890
TTM Technologies, Inc. *		5,059		51,197
Universal Display Corp. * (a)		3,427		37,354
Zoran Corp. *		6,047		66,819
Zygo Corp. *		2,235		14,997
				1,827,614
Energy - 0.55%
Ascent Solar Technologies, Inc. * (a)		1,842		10,352
Clean Energy Fuels Corp. * (a)		4,250		53,210
Comverge, Inc. * (a)		2,177		24,252
Energy Conversion Devices, Inc. * (a)		5,331		59,654
Evergreen Energy, Inc. *		15,735		16,049
Evergreen Solar, Inc. * (a)		21,833		36,898
Fuelcell Energy, Inc. *		7,778		28,390
Green Plains Renewable Energy, Inc. *		1,133		8,633
GT Solar International, Inc. * (a)		3,483		17,868
Headwaters, Inc. *		5,045		19,373
New Jersey Resources Corp. (a)		4,797		176,290
PowerSecure International, Inc. *		2,414		12,794
Rosetta Resources, Inc. *		6,227		73,541
SatCon Technology Corp. *		6,592		12,986
				550,290
Financial Services - 3.34%
Advance America Cash Advance Centers, Inc.		5,411		31,059
Allied Capital Corp.		20,836		62,508
Apollo Investment Corp.		16,461		152,429
Ares Capital Corp.		11,232		104,458
Asset Acceptance Capital Corp. *		1,945		14,160
Bankrate, Inc. * (a)		1,475		42,023
BGC Partners, Inc.		5,649		25,533
BlackRock Kelso Capital Corp.		1,553		12,346
Broadpoint Gleacher Securities, Inc. *		5,394		40,725
Calamos Asset Management, Inc.		2,334		26,327
Cape Bancorp, Inc. *		2,354		19,114
Capital Southwest Corp.		376		28,478
Cass Information Systems, Inc.		973		30,377
City Holding Company		1,912		60,878
Cohen & Steers, Inc. (a)		2,021		39,753
Credit Acceptance Corp. *		709		21,632
Delphi Financial Group, Inc.		4,984		116,476
Diamond Hill Investment Group, Inc. *		312		16,034
Dollar Financial Corp. *		2,852		49,710
Duff & Phelps Corp.		1,922		32,751
E*TRADE Financial Corp. * (a)		109,389		192,525
Encore Capital Group, Inc. *		1,641		24,451
Epoch Holding Corp. (a)		1,590		13,054
Evercore Partners, Inc.		1,276		32,130
FCStone Group, Inc. *		3,526		16,890
Financial Federal Corp.		3,109		72,813
First Financial Northwest, Inc.		2,699		19,703
GAMCO Investors, Inc., Class A		855		38,586
GFI Group, Inc.		7,575		54,237
Gladstone Capital Corp.		2,746		20,568
Gladstone Investment Corp.		3,179		16,086
Harris & Harris Group, Inc. *		3,421		20,150
Heartland Payment Systems, Inc.		4,427		55,382
Hercules Technology Growth Capital, Inc.		4,236		39,268
Home Bancorp, Inc. *		1,386		16,909
JMP Group, Inc.		1,930		19,782
Kayne Anderson Energy Development Fund *		1,484		17,274
KBW, Inc. * (a)		4,063		116,283
Kearny Financial Corp.		2,267		24,824
Knight Capital Group, Inc. *		10,780		216,894
Kohlberg Capital Corp.		2,332		11,100
LaBranche & Company, Inc. *		6,840		26,402
MarketAxess Holdings, Inc. *		3,817		42,330
MCG Capital Corp. *		7,822		23,701
Medallion Financial Corp.		2,197		18,345
MF Global, Ltd. *		11,192		80,023
MoneyGram International, Inc. *		9,878		26,275
MVC Capital, Inc.		2,725		24,852
National Bankshares, Inc.		1,023		25,994
National Financial Partners Corp.		4,857		38,127
Nelnet, Inc., Class A *		2,269		33,490
NGP Capital Resources Company		2,771		17,762
Ocwen Financial Corp. *		4,526		46,844
Oppenheimer Holdings, Inc., Class A		1,105		28,531
optionsXpress Holdings, Inc.		4,916		81,802
PennantPark Investment Corp.		2,640		22,044
Penns Woods Bancorp, Inc.		686		21,959
Penson Worldwide, Inc. * (a)		2,269		23,008
Piper Jaffray Companies, Inc. *		2,294		116,260
Portfolio Recovery Associates, Inc. * (a)		1,816		79,759
Prospect Capital Corp.		5,634		57,467
Sanders Morris Harris Group, Inc.		2,782		15,607
Stifel Financial Corp. *		3,174		178,696
SWS Group, Inc.		2,863		41,399
The First Marblehead Corp. *		7,382		19,488
Thomas Weisel Partners Group, Inc. *		3,079		13,640
TICC Capital Corp.		3,988		20,379
U.S. Global Investors, Inc.		1,661		18,404
UMB Financial Corp.		3,697		147,991
Virtus Investment Partners, Inc. *		868		13,558
Westwood Holdings Group, Inc.		720		27,734
World Acceptance Corp. * (a)		1,908		49,665
				3,347,216
Food & Beverages - 1.24%
American Dairy, Inc. * (a)		943		28,950
American Italian Pasta Company, Class A *		2,480		75,045
B&G Foods, Inc.		2,270		20,702
Calavo Growers, Inc.		1,360		23,936
Cal-Maine Foods, Inc. (a)		1,622		46,308

The accompanying notes are an integral part of the financial statements.

252

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (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. *		5,232	$	80,573
Coca-Cola Bottling Company Consolidated		537		29,030
Diamond Foods, Inc.		1,959		54,754
Diedrich Coffee, Inc. *		417		8,961
Farmer Brothers Company		823		16,995
Hain Celestial Group, Inc. *		4,850		77,600
Heckmann Corp. * (a)		9,498		39,512
Imperial Sugar Company		1,583		22,067
J & J Snack Foods Corp.		1,696		74,115
Lance, Inc.		3,313		80,340
M & F Worldwide Corp. *		1,308		25,663
Nash Finch Company		1,601		43,451
Overhill Farms, Inc. *		2,505		14,354
Sanderson Farms, Inc.		2,399		99,799
Seaboard Corp.		37		40,848
Seneca Foods Corp. *		1,191		31,776
Smart Balance, Inc. *		7,480		47,797
Tootsie Roll Industries, Inc. (a)		2,867		67,805
TreeHouse Foods, Inc. *		3,699		137,048
York Water Company		1,768		28,341
Zhongpin, Inc. *		2,330		26,515
				1,242,285
Forest Products - 0.06%
Deltic Timber Corp.		1,234		63,033
Funeral Services - 0.05%
Stewart Enterprises, Inc., Class A (a)		9,328		49,532
Furniture & Fixtures - 0.22%
American Woodmark Corp.		1,266		25,421
Ethan Allen Interiors, Inc. (a)		2,805		43,590
Furniture Brands International, Inc. *		4,827		26,983
Hooker Furniture Corp.		1,467		19,526
Kimball International, Inc., Class B		4,111		26,146
La-Z-Boy, Inc.		5,986		50,702
Sealy Corp. *		5,120		13,414
Stanley Furniture Company, Inc.		1,528		18,519
				224,301
Gas & Pipeline Utilities - 1.30%
American States Water Company		2,224		73,437
Chesapeake Utilities Corp.		1,010		31,108
Crosstex Energy, Inc.		5,104		19,548
Global Industries, Ltd. *		11,622		110,409
Middlesex Water Company		2,010		30,592
Nicor, Inc.		5,115		185,265
Northwest Natural Gas Company		3,046		128,237
Piedmont Natural Gas, Inc.		8,378		201,240
South Jersey Industries, Inc.		3,436		119,057
Southwest Gas Corp.		5,182		126,182
The Laclede Group, Inc.		2,643		86,056
WGL Holdings, Inc.		5,712		188,496
				1,299,627
Healthcare Products - 3.15%
Accuray, Inc. *		4,672		29,994
Align Technology, Inc. *		6,788		90,959
Alphatec Holdings, Inc. *		3,807		17,436
American Medical Systems Holdings, Inc. *		8,572		130,637
AngioDynamics, Inc. *		2,930		37,944
Aspect Medical Systems, Inc. *		2,681		17,239
Atrion Corp.		193		26,441
ATS Medical, Inc. *		6,175		16,611
Bruker BioSciences Corp. *		5,649		57,337
Cantel Medical Corp. *		1,543		20,738
CardioNet, Inc. *		2,994		21,557
Cardiovascular Systems, Inc. *		1,204		10,138
Clinical Data, Inc. * (a)		1,349		21,274
Computer Programs & Systems, Inc.		1,124		43,499
Conceptus, Inc. *		3,550		64,326
CONMED Corp. *		3,448		61,478
Cryolife, Inc. *		3,581		26,678
Cutera, Inc. *		1,953		17,069
Cyberonics, Inc. * (a)		3,197		48,083
Cypress Biosciences, Inc. *		4,491		31,257
Haemonetics Corp. *		2,934		154,446
Hanger Orthopedic Group, Inc. *		2,939		41,175
HeartWare International, Inc. *		613		16,649
ICU Medical, Inc. *		1,509		56,120
Insulet Corp. *		3,173		29,223
Ista Pharmaceuticals, Inc. *		4,041		22,104
Kensey Nash Corp. *		975		25,457
LCA-Vision, Inc. *		2,039		11,051
Mannkind Corp. * (a)		6,133		47,776
Masimo Corp. *		5,879		147,681
Medicines Company *		6,283		47,877
Merit Medical Systems, Inc. *		3,246		58,590
Micrus Endovascular Corp. *		1,971		22,548
Natus Medical, Inc. *		3,291		46,897
NutriSystem, Inc.		3,632		51,683
Nuvasive, Inc. * (a)		4,228		169,416
Orthofix International NV *		1,997		54,658
Owens & Minor, Inc.		4,792		212,046
PSS World Medical, Inc. *		6,876		140,545
Rochester Medical Corp. *		1,447		17,726
Rockwell Medical Technologies, Inc. *		1,894		15,171
RTI Biologics, Inc. *		6,603		30,044
Sirona Dental Systems, Inc. *		1,957		51,743
Somanetics Corp. *		1,574		20,588
SonoSite, Inc. *		2,022		47,052
Spectranetics Corp. *		4,279		24,947
Stereotaxis, Inc. * (a)		3,238		11,398
STERIS Corp.		6,727		195,218
SurModics, Inc. * (a)		1,826		41,797
Symmetry Medical, Inc. *		4,256		46,901
Synovis Life Technologies, Inc. *		1,469		23,107
The Female Health Company *		2,318		15,878
Thoratec Corp. *		6,533		171,426
TomoTherapy, Inc. *		5,875		19,681
Ulta Salon, Cosmetics & Fragrance, Inc. *		3,252		37,463
USANA Health Sciences, Inc. *		762		24,018
Volcano Corp. *		5,641		80,666
Wright Medical Group, Inc. *		4,465		72,512
Young Innovations, Inc.		745		17,493

The accompanying notes are an integral part of the financial statements.

253

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Products (continued)
Zoll Medical Corp. *		2,483	$	44,644
				3,156,110
Healthcare Services - 2.57%
Air Methods Corp. *		1,272		43,413
Alliance Imaging, Inc. *		3,099		17,138
Allied Healthcare International, Inc. *		6,094		15,296
Amedisys, Inc. * (a)		3,154		140,479
America Service Group, Inc.		1,110		20,246
American Dental Partners, Inc. *		1,696		21,912
AMERIGROUP Corp. *		6,067		143,485
AMN Healthcare Services, Inc. *		3,939		38,878
AmSurg Corp. *		3,580		72,674
Assisted Living Concepts, Inc. *		1,238		25,045
athenahealth, Inc. *		3,889		156,455
Capital Senior Living Corp. *		2,968		15,998
Catalyst Health Solutions, Inc. *		4,230		120,809
Centene Corp. *		4,987		86,325
CorVel Corp. *		944		28,377
Cross Country Healthcare, Inc. *		3,726		34,316
Emergency Medical Services Corp., Class A *		1,133		51,382
Emeritus Corp. *		2,322		41,866
Enzo Biochem, Inc. *		4,077		20,752
Gentiva Health Services, Inc. *		3,368		74,264
Healthcare Services Group, Inc.		5,146		90,981
Healthsouth Corp. * (a)		10,187		159,019
Healthspring, Inc. *		5,669		75,001
Healthways, Inc. *		3,952		51,692
IPC The Hospitalist Company *		1,867		55,151
Kindred Healthcare, Inc. *		4,533		64,731
LHC Group, Inc. *		1,765		43,154
Magellan Health Services, Inc. *		4,065		130,446
National Healthcare Corp.		965		36,882
Nighthawk Radiology Holdings, Inc. *		2,707		16,865
NovaMed, Inc. * (a)		2,840		12,013
Obagi Medical Products, Inc. *		2,400		22,800
Odyssey Healthcare, Inc. *		3,855		49,652
Palomar Medical Technologies, Inc. *		2,147		29,800
Phase Forward, Inc. *		5,055		65,007
Psychiatric Solutions, Inc. *		6,503		174,215
RadNet, Inc. *		3,781		8,167
Skilled Healthcare Group, Inc. *		2,539		19,195
Star Scientific, Inc. * (a)		10,309		10,309
Sun Healthcare Group, Inc. *		5,185		42,724
The Advisory Board Company *		1,853		48,975
The Ensign Group, Inc.		1,242		17,227
Triple-S Management Corp. *		2,421		44,885
US Physical Therapy, Inc. *		1,532		22,245
WellCare Health Plans, Inc. *		4,880		118,438
				2,578,684
Holdings Companies/Conglomerates - 0.01%
Information Services Group, Inc. *		3,686		14,670
Homebuilders - 0.37%
Beazer Homes USA, Inc. * (a)		4,872		20,998
Cavco Industries, Inc. *		901		29,111
China Housing & Land Development, Inc. *		3,056		12,285
Hovnanian Enterprises, Inc., Class A * (a)		6,259		33,611
M/I Homes, Inc. *		2,144		33,918
Meritage Homes Corp. *		3,663		82,088
Ryland Group, Inc.		5,012		114,875
Standard Pacific Corp. *		11,709		42,504
				369,390
Hotels & Restaurants - 1.52%
AFC Enterprises, Inc. *		3,474		28,834
Ameristar Casinos, Inc.		2,959		49,149
Benihana, Inc., Class A *		2,043		14,465
BJ’s Restaurants, Inc. *		2,395		41,074
Bob Evans Farms, Inc.		3,643		97,887
Buffalo Wild Wings, Inc. * (a)		2,116		87,243
California Pizza Kitchen, Inc. *		2,361		33,196
CEC Entertainment, Inc. *		2,735		73,161
CKE Restaurants, Inc.		5,963		57,662
Denny’s Corp. *		12,249		31,235
DineEquity, Inc. *		2,079		43,825
Domino’s Pizza, Inc. *		4,554		36,842
Jack in the Box, Inc. *		6,683		136,266
Krispy Kreme Doughnuts, Inc. *		7,344		22,546
Marcus Corp.		2,461		30,812
McCormick & Schmick’s Seafood Restaurants, Inc. *		1,978		17,426
Morgans Hotel Group Company *		3,049		15,032
O’Charley’s, Inc.		2,232		17,075
Orient Express Hotels, Ltd., Class A		8,873		88,375
P.F. Chang’s China Bistro, Inc. * (a)		2,799		89,316
Papa John’s International, Inc. *		2,649		61,801
Peets Coffee & Tea, Inc. *		1,409		37,071
Red Lion Hotels Corp. *		2,261		13,114
Red Robin Gourmet Burgers, Inc. *		1,893		36,497
Ruby Tuesday, Inc. *		7,581		55,341
Ruth’s Chris Steak House, Inc. *		2,739		10,846
Sonic Corp. *		7,248		82,845
Texas Roadhouse, Inc., Class A *		6,003		61,171
The Cheesecake Factory, Inc. * (a)		6,998		128,553
The Steak & Shake Company * (a)		2,923		30,633
				1,529,293
Household Appliances - 0.05%
National Presto Industries, Inc.		567		47,498
Household Products - 0.60%
Blyth, Inc.		693		31,532
Central Garden & Pet Company, Class A *		7,192		79,112
Endologix, Inc. *		5,323		24,113
Kirklands, Inc. *		1,442		20,419
Tempur-Pedic International, Inc. *		8,606		127,369
Tupperware Brands Corp.		7,256		268,399
WD-40 Company		2,026		54,661
				605,605
Industrial Machinery - 1.70%
Actuant Corp., Class A		7,849		110,906
Albany International Corp., Class A		3,209		55,163
Altra Holdings, Inc. *		3,213		30,845
Badger Meter, Inc.		1,734		62,753

The accompanying notes are an integral part of the financial statements.

254

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery (continued)
Briggs & Stratton Corp. (a)		5,751	$	101,448
Cascade Corp.		1,089		27,748
Chart Industries, Inc. *		3,330		62,138
Circor International, Inc.		2,043		52,730
Cognex Corp.		4,672		74,845
Dionex Corp. *		2,059		123,828
DXP Enterprises, Inc. *		1,001		10,621
EnPro Industries, Inc. *		2,355		50,680
Flow International Corp. *		5,341		11,430
Gorman-Rupp Company (a)		1,699		40,011
H&E Equipment Services, Inc. *		3,258		32,645
Intevac, Inc. *		2,653		30,987
Kadant, Inc. *		1,668		19,399
Lindsay Corp. (a)		1,449		60,148
Lufkin Industries, Inc.		1,737		76,862
Metropolitan Pro Corp.		2,069		20,462
Middleby Corp. *		1,897		89,519
NACCO Industries, Inc., Class A		651		38,083
NATCO Group, Inc. *		2,317		96,387
OYO Geospace Corp. *		575		11,563
Raser Technologies, Inc. * (a)		6,326		13,285
Robbins & Myers, Inc.		3,096		71,889
Rofin-Sinar Technologies, Inc. *		3,389		77,066
Tecumseh Products Company, Class A *		2,275		20,589
Tennant Company		2,191		56,024
Tredegar Industries, Inc.		3,547		53,134
Twin Disc, Inc.		1,235		15,672
Watts Water Technologies, Inc., Class A		3,374		101,794
				1,700,654
Industrials - 0.24%
Clean Harbors, Inc. *		2,468		145,661
EnergySolutions, Inc.		8,777		77,940
Graham Corp.		1,283		17,475
				241,076
Insurance - 3.60%
Ambac Financial Group, Inc. * (a)		33,930		59,717
American Equity Investment Life Holding Company		6,374		51,438
American Physicians Capital, Inc.		1,216		36,285
American Physicians Service Group, Inc.		1,078		24,805
American Safety Insurance Holdings, Ltd. *		1,311		20,111
Amerisafe, Inc. *		2,365		40,394
Amtrust Financial Services, Inc.		2,746		34,682
Argo Group International Holdings, Ltd. *		3,561		125,774
Assured Guaranty, Ltd. (a)		12,060		239,994
Baldwin & Lyons, Inc., Class B		1,100		24,332
Citizens, Inc., Class A *		4,090		27,853
CNA Surety Corp. *		2,036		32,332
Conseco, Inc. *		21,380		91,720
Crawford & Company, Class B *		2,816		13,038
Donegal Group, Inc.		1,471		21,594
eHealth, Inc. *		2,978		55,093
Employers Holdings, Inc.		5,497		81,575
Enstar Group, Ltd. *		768		47,524
FBL Financial Group, Inc., Class A		1,640		27,880
First Mercury Financial Corp.		1,884		27,299
Flagstone Reinsurance Holdings, Ltd.		4,566		49,587
FPIC Insurance Group, Inc. *		1,005		32,070
Greenlight Capital Re, Ltd., Class A *		3,336		61,049
Harleysville Group, Inc.		1,605		52,018
Horace Mann Educators Corp.		4,615		56,534
Infinity Property & Casualty Corp.		1,679		73,826
IPC Holdings, Ltd.		6,425		208,298
Kansas City Life Insurance Company		544		19,448
Life Partners Holdings, Inc.		881		15,100
Maiden Holdings, Ltd.		5,890		45,000
Max Capital Group, Ltd.		5,330		109,052
Meadowbrook Insurance Group, Inc.		6,796		54,164
Mercer Insurance Group, Inc.		1,105		20,255
MGIC Investment Corp. * (a)		14,556		118,340
Montpelier Re Holdings, Ltd.		9,929		159,758
National Western Life Insurance Company, Class A		274		45,130
Navigators Group, Inc. *		1,507		78,213
Phoenix Companies, Inc. *		13,381		39,742
Platinum Underwriters Holdings, Ltd.		5,839		211,664
PMA Capital Corp., Class A *		4,175		23,004
PMI Group, Inc.		8,506		28,410
Presidential Life Corp.		2,702		26,750
ProAssurance Corp. *		3,844		201,810
Radian Group, Inc.		9,575		87,803
RLI Corp.		2,189		116,039
Safety Insurance Group, Inc.		1,681		54,010
SeaBright Insurance Holdings, Inc. *		2,844		28,468
Selective Insurance Group, Inc.		6,214		105,762
State Auto Financial Corp.		1,775		30,477
Stewart Information Services Corp.		2,086		29,559
Tower Group, Inc.		4,742		113,761
United America Indemnity, Ltd. *		4,605		28,689
United Fire & Casualty Company		2,714		54,307
Universal American Financial Corp. *		3,156		28,972
Zenith National Insurance Corp.		4,330		116,737
				3,607,246
International Oil - 0.18%
ATP Oil & Gas Corp. *		3,366		37,531
BPZ Energy, Inc. *		10,738		65,287
Cheniere Energy, Inc. *		7,255		19,951
Parker Drilling Company *		13,440		60,615
				183,384
Internet Content - 0.29%
AMICAS, Inc. *		5,054		17,942
Health Grades, Inc. *		3,047		13,833
InfoSpace, Inc. *		4,273		34,611
Internet Capital Group, Inc. *		4,446		29,521
Liquidity Services, Inc. *		1,733		18,872
LoopNet, Inc. *		2,541		20,303
Move, Inc. *		18,195		52,584
RightNow Technologies, Inc. *		2,567		32,293
TeleCommunication Systems, Inc. *		4,510		34,005

The accompanying notes are an integral part of the financial statements.

255

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Internet Content (continued)
The Knot, Inc. *		3,686	$	37,229
				291,193
Internet Incubators - 0.07%
ModusLink Global Solutions, Inc. *		5,414		38,872
Safeguard Scientifics, Inc. *		2,493		27,797
				66,669
Internet Retail - 0.37%
Blue Nile, Inc. * (a)		1,477		81,796
Drugstore.com, Inc. *		10,528		24,951
Internet Brands, Inc., Class A *		3,409		24,852
Mercadolibre, Inc. * (a)		3,008		94,662
Orbitz Worldwide, Inc. *		4,630		29,030
Overstock.com, Inc. * (a)		1,834		22,852
PetMed Express, Inc.		2,726		49,313
Shutterfly, Inc. *		2,448		35,398
Stamps.com, Inc. *		1,496		12,896
				375,750
Internet Service Provider - 0.47%
AboveNet, Inc. *		718		65,776
Cogent Communications Group, Inc. *		5,256		50,720
Earthlink, Inc. *		12,388		103,068
Online Resources Corp. *		3,033		16,591
Rackspace Hosting, Inc. *		7,723		99,936
Saba Software, Inc. *		3,159		10,772
Terremark Worldwide, Inc. *		6,854		36,121
United Online, Inc.		9,785		68,495
Web.com Group, Inc. *		3,309		18,067
				469,546
Internet Software - 1.05%
ActivIdentity Corp. *		7,173		18,004
Art Technology Group, Inc. *		14,843		59,966
Chordiant Software, Inc. *		4,101		16,035
Cybersource Corp. *		8,057		123,675
DealerTrack Holdings, Inc. *		4,360		87,985
Digital River, Inc. *		4,440		156,821
eResearch Technology, Inc. *		5,275		33,180
Keynote Systems, Inc. *		1,728		17,384
Lionbridge Technologies, Inc. *		7,170		19,287
NIC, Inc. *		5,977		45,843
Openwave Systems, Inc. *		9,762		27,041
PC-Tel, Inc. *		2,757		16,266
RealNetworks, Inc. *		9,923		35,127
S1 Corp. *		6,296		39,602
Sapient Corp. *		9,772		71,629
Support.com, Inc. *		6,826		16,041
Switch & Data Facilities Company, Inc. *		2,293		31,162
TIBCO Software, Inc. *		20,254		179,653
VASCO Data Security International, Inc. *		3,331		28,846
Vocus, Inc. *		1,959		33,029
				1,056,576
Investment Companies - 0.13%
American Capital, Ltd. (a)		32,616		80,888
Fifth Street Finance Corp.		3,314		34,101
Main Street Capital Corp. *		1,084		14,222
Teton Advisors, Inc. * (l)		21		0
				129,211
Leisure Time - 1.33%
Bally Technologies, Inc. *		6,319		255,477
Brunswick Corp.		10,283		95,529
Callaway Golf Company (a)		7,660		54,156
Carmike Cinemas, Inc. *		1,451		14,713
Churchill Downs, Inc.		1,173		44,304
Cinemark Holdings, Inc.		3,766		37,811
Dover Downs Gaming & Entertainment, Inc.		2,038		12,187
Gaylord Entertainment Company *		4,031		81,910
Great Wolf Resorts, Inc. *		4,001		14,044
Isle of Capri Casinos, Inc. *		1,791		18,322
Life Time Fitness, Inc. *		4,682		145,704
Monarch Casino & Resort, Inc. *		1,326		13,300
Multimedia Games, Inc. *		3,273		16,431
National Cinemedia, Inc.		4,930		73,950
Parkervision, Inc. * (a)		4,357		15,729
Pinnacle Entertainment, Inc. *		6,990		65,566
Polaris Industries, Inc.		3,551		133,908
RC2 Corp. *		2,082		32,687
Shuffle Master, Inc. *		6,346		48,103
Speedway Motorsports, Inc.		1,575		24,491
Vail Resorts, Inc. *		3,423		113,370
West Marine, Inc. *		1,903		15,738
Youbet.com, Inc. *		3,733		7,727
				1,335,157
Life Sciences - 0.34%
American Ecology Corp.		2,228		40,728
Celera Corp. *		9,634		63,006
Dawson Geophysical Company *		969		24,022
Halozyme Therapeutics, Inc. *		7,906		58,821
Incyte Corp. *		8,363		55,112
Nanosphere, Inc. *		1,353		10,838
Repligen Corp. *		4,024		20,200
Sequenom, Inc. * (a)		7,150		45,688
Symyx Technologies, Inc. *		4,009		24,776
				343,191
Liquor - 0.04%
Boston Beer Company, Inc. *		1,015		40,346
Manufacturing - 1.71%
Acuity Brands, Inc. (a)		5,008		160,807
ATC Technology Corp. *		2,316		48,451
Barnes Group, Inc.		5,398		79,297
Blount International, Inc. *		4,498		41,247
Ceradyne, Inc. *		3,032		56,759
China Fire & Security Group, Inc. * (a)		1,604		24,573
Coherent, Inc. *		2,620		58,583
Colfax Corp. *		2,848		30,189
ESCO Technologies, Inc. *		3,036		112,514
Force Protection, Inc. *		8,254		43,746
Freightcar America, Inc.		1,566		29,879
GenTek, Inc. *		1,097		30,091
Hexcel Corp. *		11,164		121,464
Insteel Industries, Inc. (a)		2,226		25,421

The accompanying notes are an integral part of the financial statements.

256

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Manufacturing (continued)
iRobot Corp. *		2,376	$	27,253
John Bean Technologies Corp.		3,215		53,658
Kaydon Corp.		3,831		127,879
Koppers Holdings, Inc.		2,392		65,302
K-Tron International, Inc. *		307		25,856
Lancaster Colony Corp.		2,256		113,387
Mine Safety Appliances Company		3,081		82,355
Nordson Corp.		3,887		208,265
Raven Industries, Inc.		1,866		53,927
Smith & Wesson Holding Corp. * (a)		6,195		33,329
Spartan Motors, Inc.		3,696		20,069
Sturm Ruger & Company, Inc. (a)		2,351		32,467
TriMas Corp. *		2,125		10,328
				1,717,096
Medical Instruments - 0.04%
Bovie Medical Corp. * (a)		2,294		19,407
Vascular Solutions, Inc. *		2,363		17,865
				37,272
Medical-Drugs - 0.02%
SIGA Technologies, Inc. *		3,116		22,809
Medical-Hospitals - 0.68%
Cepheid, Inc. *		6,761		81,064
Clarient, Inc. * (a)		3,470		13,637
DexCom, Inc. *		5,451		42,572
Electro-Optical Sciences, Inc. * (a)		2,566		25,275
EV3, Inc. *		8,202		104,494
Exactech, Inc. *		1,116		16,595
Genoptix, Inc. *		1,977		56,720
IRIS International, Inc. *		2,306		23,706
MedCath Corp. *		1,820		16,598
Merge Healthcare, Inc. *		2,978		9,530
Microvision, Inc. * (a)		9,017		30,387
MWI Veterinary Supply, Inc. *		1,268		47,182
Neogen Corp. *		1,575		44,100
Novavax, Inc. * (a)		7,161		43,252
NxStage Medical, Inc. *		2,647		16,359
Orthovita, Inc. *		7,700		32,494
RehabCare Group, Inc. *		2,133		44,772
Sunrise Senior Living, Inc. *		5,352		11,828
Vital Images, Inc. *		1,857		23,603
				684,168
Metal & Metal Products - 0.95%
A. M. Castle & Company		1,952		21,491
Ampco-Pittsburgh Corp.		1,036		24,740
Brush Engineered Materials, Inc. *		2,343		51,968
Dynamic Materials Corp.		1,532		24,803
Fushi Copperweld, Inc. *		1,878		14,667
Gibraltar Industries, Inc.		3,219		38,757
Haynes International, Inc. *		1,438		38,984
Horsehead Holding Corp. *		4,127		46,222
Kaiser Aluminum Corp.		1,820		58,841
L.B. Foster Company *		1,235		36,828
Ladish Company, Inc. *		1,969		28,826
Matthews International Corp., Class A		3,552		123,752
Metalico, Inc. *		3,199		12,988
Mueller Industries, Inc.		4,330		104,743
Mueller Water Products, Inc.		13,378		61,539
Paramount Gold and Silver Corp. * (a)		8,745		10,494
RBC Bearings, Inc. *		2,530		55,660
RTI International Metals, Inc. *		2,714		52,163
Sun Hydraulics, Inc.		1,519		27,995
The Eastern Company		899		14,824
Universal Stainless & Alloy Products, Inc. *		928		16,620
Uranerz Energy Corp. * (a)		5,539		10,303
Uranium Energy Corp. *		5,416		14,461
USEC, Inc. *		13,038		59,323
				950,992
Mining - 0.25%
Allied Nevada Gold Corp. *		5,113		41,364
AMCOL International Corp. (a)		2,769		61,306
General Moly, Inc. *		7,549		20,684
Hecla Mining Company * (a)		25,088		74,762
Stillwater Mining Company *		4,773		30,595
U.S. Gold Corp. *		9,389		26,196
				254,907
Mobile Homes - 0.06%
Skyline Corp.		907		21,378
Winnebago Industries, Inc.		3,370		40,777
				62,155
Multimedia - 0.07%
Ascent Media Corp., Class A *		1,648		42,354
EW Scripps Co. *		3,411		23,740
				66,094
Office Furnishings & Supplies - 0.57%
Acco Brands Corp. *		6,345		35,532
Herman Miller, Inc.		6,172		100,110
HNI Corp. (a)		5,140		110,407
Knoll, Inc.		5,448		52,464
OfficeMax, Inc.		8,864		100,252
Steelcase, Inc. Class A		8,207		51,294
United Stationers, Inc. *		2,730		124,734
				574,793
Oil & Gas Drilling - 0.02%
Zion Oil & Gas Inc * (a)		1,560		15,740
Paper - 0.80%
Boise, Inc. *		3,490		15,216
Buckeye Technologies, Inc. *		4,483		45,189
Clearwater Paper Corp. *		1,320		60,918
Domtar Corp. *		4,811		170,454
KapStone Paper and Packaging Corp. *		2,561		17,594
Neenah Paper, Inc.		1,880		21,338
Orchids Paper Products Company *		661		14,013
P.H. Glatfelter Company		5,287		55,143
Potlatch Corp.		4,569		132,958
Rock-Tenn Company, Class A		4,385		224,907
Wausau-Mosinee Paper Corp.		5,064		48,918
				806,648

The accompanying notes are an integral part of the financial statements.

257

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Petroleum Services - 1.07%
Basic Energy Services, Inc. *		2,816	$	19,092
Bolt Technology Corp. *		1,256		14,833
Boots & Coots, Inc. *		10,217		15,530
Bronco Drilling Company, Inc. *		3,411		12,621
Complete Production Services, Inc. *		6,795		61,155
CVR Energy, Inc. *		2,801		27,114
Dril-Quip, Inc. *		3,353		143,039
GulfMark Offshore, Inc. *		2,659		79,291
Hercules Offshore, Inc. * (a)		10,205		46,943
Hornbeck Offshore Services, Inc. *		2,672		58,944
ION Geophysical Corp. *		10,243		26,120
Key Energy Services, Inc. *		14,183		101,408
Newpark Resources, Inc. *		10,775		28,769
Petroleum Development Corp. *		1,962		26,860
Pioneer Drilling Company *		5,248		29,914
Rex Energy Corp. *		3,007		17,922
RPC, Inc. (a)		3,287		30,043
Superior Well Services, Inc. *		1,754		15,839
T-3 Energy Services, Inc. *		1,656		29,112
TETRA Technologies, Inc. *		8,779		77,431
Willbros Group, Inc. *		4,628		57,619
World Fuel Services Corp.		3,441		154,638
				1,074,237
Pharmaceuticals - 2.74%
Adolor Corp. *		6,238		10,230
Affymax, Inc. *		1,638		37,314
Akorn, Inc. *		8,053		10,549
Alkermes, Inc. *		10,975		99,324
Allos Therapeutics, Inc. *		7,294		53,611
American Oriental Bioengineering, Inc. * (a)		7,145		36,368
Amicus Therapeutics, Inc. *		1,783		17,527
Array BioPharma, Inc. *		5,811		23,941
Auxilium Pharmaceuticals, Inc. *		4,971		143,115
AVANIR Pharmaceuticals * (a)		6,977		13,396
AVI BioPharma, Inc. * (a)		9,249		15,816
Biocryst Pharmaceuticals, Inc. * (a)		2,514		31,350
Biodel, Inc. *		2,029		10,328
BioScrip, Inc. *		4,962		29,177
BioSpecifics Technologies Corp. *		486		12,626
BMP Sunstone Corp. *		3,906		15,624
Cadence Pharmaceuticals, Inc. * (a)		2,824		30,810
Chelsea Therapeutics International, Inc. *		3,250		18,395
Cubist Pharmaceuticals, Inc. *		6,652		137,563
Emergent Biosolutions, Inc. *		1,931		35,781
Enzon Pharmaceuticals, Inc. * (a)		5,357		38,410
Hemispherx Biopharma, Inc. *		12,926		28,696
Hi-Tech Pharmacal Company, Inc. *		1,033		15,609
Idenix Pharmaceuticals, Inc. *		3,349		10,248
Indevus Pharmaceuticals, Inc. *		156		172
Infinity Pharmaceuticals, Inc. *		2,339		16,373
Inspire Pharmaceuticals, Inc. *		5,136		30,662
Isis Pharmaceuticals, Inc. * (a)		10,766		173,763
Javelin Pharmaceuticals, Inc. * (a)		6,667		11,867
K-V Pharmaceutical Company, Class A *		4,429		10,142
Lannett Company, Inc. *		1,343		11,563
Ligand Pharmaceuticals, Inc., Class B *		13,392		32,141
MAP Pharmaceuticals, Inc. *		893		7,894
Medicis Pharmaceutical Corp., Class A		6,824		126,039
Molecular Insight Pharmaceuticals, Inc. * (a)		2,074		10,370
Myriad Pharmaceuticals, Inc. *		3,489		15,700
NeurogesX, Inc. *		1,289		9,590
NPS Pharmaceuticals, Inc. *		5,828		24,303
Onyx Pharmaceuticals, Inc. *		6,579		210,989
Optimer Pharmaceuticals, Inc. *		3,322		43,286
Par Pharmaceutical Companies, Inc. *		4,094		83,722
PDL BioPharma, Inc.		13,732		124,275
Pharmasset, Inc. *		2,459		45,393
PharMerica Corp. *		3,548		71,137
Poniard Pharmaceuticals, Inc. * (a)		2,665		22,066
POZEN, Inc. *		3,236		21,778
Prestige Brands Holdings, Inc. *		3,972		29,433
Questcor Pharmaceuticals, Inc. *		6,871		39,921
Regeneron Pharmaceuticals, Inc. *		7,304		166,020
Rigel Pharmaceuticals, Inc. *		4,346		30,639
Salix Pharmaceuticals, Ltd. *		5,604		70,106
Santarus, Inc. *		6,339		20,158
Savient Pharmaceuticals, Inc. * (a)		7,037		97,744
SciClone Pharmaceuticals, Inc. *		4,505		21,894
Spectrum Pharmaceuticals, Inc. *		4,327		36,779
Sucampo Pharmaceuticals, Inc. *		1,569		8,802
Supergen, Inc. *		7,633		21,449
Theravance, Inc. *		6,198		96,503
Vanda Pharmaceuticals, Inc. *		3,093		42,250
Vical, Inc. *		4,353		20,067
ViroPharma, Inc. *		8,997		71,976
				2,752,774
Photography - 0.18%
CPI Corp.		649		11,734
Eastman Kodak Company		31,242		166,207
				177,941
Plastics - 0.03%
AEP Industries, Inc. *		693		26,549
Pollution Control - 0.04%
Fuel Tech, Inc. *		2,149		21,963
Perma-Fix Environmental Services, Inc. *		7,209		17,734
				39,697
Precious Metals - 0.12%
Coeur d’Alene Mines Corp. *		7,917		119,863
Publishing - 0.55%
American Greetings Corp., Class A		4,585		63,686
Consolidated Graphics, Inc. *		1,241		25,639
Courier Corp.		1,444		23,248
Dolan Media Company *		3,543		37,556
Martha Stewart Living Omnimedia, Inc., Class A * (a)		3,719		26,665
Multi-Color Corp.		1,419		19,795
Scholastic Corp.		2,627		63,994
Valassis Communications, Inc. *		5,602		87,951
VistaPrint, Ltd. * (a)		4,881		202,269
				550,803

The accompanying notes are an integral part of the financial statements.

258

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Railroads & Equipment - 0.15%
Genesee & Wyoming, Inc., Class A *		3,860	$	121,127
Greenbrier Company, Inc. (a)		2,108		27,130
				148,257
Real Estate - 5.83%
Acadia Realty Trust, REIT		4,716		72,202
Agree Realty Corp., REIT		1,017		21,164
Alexander’s, Inc., REIT *		240		67,992
American Campus Communities, Inc., REIT		5,999		156,034
American Capital Agency Corp., REIT		1,211		30,142
Anworth Mortgage Asset Corp., REIT		11,732		87,873
Ashford Hospitality Trust, Inc., REIT		7,089		21,834
Associated Estates Realty Corp., REIT		2,552		21,284
Avatar Holdings, Inc. *		850		16,226
BioMed Realty Trust, Inc., REIT		11,351		153,011
Capital Lease Funding, Inc., REIT		6,524		27,075
Capstead Mortage Corp., REIT		7,358		100,437
CBL & Associates Properties, Inc., REIT		15,910		149,077
Cedar Shopping Centers, Inc., REIT		4,597		29,559
Cogdell Spencer, Inc., REIT		3,692		16,688
Colonial Properties Trust, REIT		5,791		52,293
Consolidated Tomoka Land Company		670		23,410
Cousins Properties, Inc., REIT (a)		4,654		38,582
DCT Industrial Trust, Inc., REIT		20,261		106,978
Developers Diversified Realty Corp., REIT (a)		16,590		130,066
DiamondRock Hospitality Company, REIT		12,551		85,974
DuPont Fabros Technology, Inc., REIT		3,090		40,417
EastGroup Properties, Inc., REIT		2,931		110,323
Education Realty Trust, Inc., REIT		6,917		40,464
Entertainment Properties Trust, REIT		4,027		126,287
Equity Lifestyle Properties, Inc., REIT		2,914		117,288
Equity One, Inc., REIT (a)		3,716		58,527
Extra Space Storage, Inc., REIT		10,095		99,940
FelCor Lodging Trust, Inc., REIT		7,743		31,824
First Industrial Realty Trust, Inc., REIT		4,755		24,869
First Potomac Realty Trust, REIT		3,425		36,613
Forestar Real Estate Group, Inc. *		4,209		60,778
Franklin Street Properties Corp., REIT		6,839		97,182
Getty Realty Corp., REIT		2,116		49,916
Gladstone Commercial Corp., REIT		1,478		19,864
Glimcher Realty Trust, REIT		4,845		19,525
Hatteras Financial Corp., REIT		4,150		124,043
Healthcare Realty Trust, Inc., REIT		6,789		146,982
Hersha Hospitality Trust, REIT		5,829		18,070
Highwoods Properties, Inc., REIT		8,134		238,896
Hilltop Holdings, Inc. *		4,828		59,288
Home Properties, Inc., REIT		3,784		143,678
Inland Real Estate Corp., REIT		8,291		69,479
Investors Real Estate Trust, SBI, REIT		7,773		71,978
iStar Financial, Inc., REIT * (a)		11,777		24,849
Kilroy Realty Corp., REIT		4,149		114,969
Kite Realty Group Trust, REIT		5,818		21,177
LaSalle Hotel Properties, REIT		7,360		121,808
Lexington Corporate Property Trust, REIT		9,991		46,558
LTC Properties, Inc., REIT		2,685		68,387
Medical Properties Trust, Inc., REIT (a)		9,198		69,629
MFA Mortgage Investments, Inc., REIT		32,380		256,450
Mid-America Apartment Communities, Inc., REIT		3,235		141,628
Mission West Properties, Inc., REIT		3,108		21,445
Monmouth Real Estate Investment Corp.		3,117		21,757
National Health Investments, Inc., REIT		3,049		100,922
National Retail Properties, Inc., REIT		9,156		187,881
NorthStar Realty Finance Corp., REIT (a)		7,273		27,637
OMEGA Healthcare Investors, Inc., REIT		9,474		160,205
One Liberty Properties, Inc., REIT		33		298
Parkway Properties, Inc., REIT		2,566		46,445
Pennsylvania Real Estate Investment Trust, REIT (a)		4,340		28,774
PICO Holdings, Inc. *		2,252		74,609
Post Properties, Inc., REIT		5,180		88,267
PS Business Parks, Inc., REIT		1,759		93,104
RAIT Financial Trust, REIT (a)		8,325		23,809
Ramco-Gershenson Properties Trust, REIT		1,936		20,367
Redwood Trust, Inc., REIT		8,970		143,789
Resource Capital Corp., REIT		3,055		13,198
Saul Centers, Inc., REIT		787		25,648
Sovran Self Storage, Inc., REIT		2,687		78,971
Strategic Hotel & Resorts, Inc., REIT		9,999		13,699
Sun Communities, Inc., REIT		2,013		35,952
Sunstone Hotel Investors, Inc., REIT		8,840		55,338
Tanger Factory Outlet Centers, Inc., REIT		4,223		158,869
Universal Health Realty Income Trust, REIT		1,365		45,850
Urstadt Biddle Properties, Inc., REIT		2,490		38,520
U-Store-It Trust, REIT		5,965		38,594
Walter Investment Management Corp., REIT		2,161		31,205
Washington Real Estate Investment Trust, REIT (a)		6,683		180,174
Winthrop Realty Trust, REIT		1,811		16,571
				5,851,485
Retail - 1.85%
Allion Healthcare, Inc. *		2,633		18,563
AnnTaylor Stores Corp. *		6,816		95,969
Build A Bear Workshop, Inc. *		2,283		10,662
Cabela’s, Inc. * (a)		4,624		74,215
Cash America International, Inc.		3,448		96,647
Christopher & Banks Corp.		4,137		28,380
Citi Trends, Inc. *		1,711		38,138
Coldwater Creek, Inc. *		6,664		49,580
Collective Brands, Inc. *		7,420		117,533
Conn’s, Inc. * (a)		1,164		13,165
Cracker Barrel Old Country Store, Inc.		2,697		76,622
Destination Maternity Corp. *		625		12,550
Dillard’s, Inc., Class A		5,928		67,639
DSW, Inc., Class A *		1,526		23,134
FGX International Holdings, Ltd. *		1,714		24,750
Finish Line, Inc.		4,917		40,565
Fred’s, Inc., Class A		4,750		62,130
Fuqi International, Inc. * (a)		1,127		29,223
Genesco, Inc. *		2,217		48,552
J. Crew Group, Inc. * (a)		5,834		198,881
Jo-Ann Stores, Inc. *		3,052		83,381
Pantry, Inc. *		2,732		41,390

The accompanying notes are an integral part of the financial statements.

259

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail (continued)
Regis Corp. (a)		6,652	$	107,629
Retail Ventures, Inc. *		3,196		15,469
Rex Stores Corp. *		1,048		10,983
Saks, Inc. * (a)		13,772		84,009
Shoe Carnival, Inc. *		1,154		18,141
Sport Supply Group, Inc.		1,415		14,546
Stein Mart, Inc. *		2,984		36,882
Systemax, Inc. *		1,236		16,439
Talbots, Inc.		2,755		16,420
The Dress Barn, Inc. * (a)		5,224		84,786
The Men’s Wearhouse, Inc. (a)		6,028		156,728
Titan Machinery, Inc. *		1,568		18,894
Tween Brands, Inc. *		2,908		22,101
				1,854,696
Retail Grocery - 0.56%
Arden Group, Inc.		143		16,874
Ingles Markets, Inc.		1,788		29,484
PriceSmart, Inc.		1,945		34,524
Ruddick Corp.		4,988		132,481
Spartan Stores, Inc.		2,805		37,222
The Great Atlantic & Pacific Tea Company, Inc. *		4,055		27,209
United Natural Foods, Inc. *		5,024		135,749
Village Super Market, Inc.		763		21,860
Weis Markets, Inc.		1,314		41,010
Winn-Dixie Stores, Inc. *		6,382		87,880
				564,293
Retail Trade - 1.69%
99 Cents Only Stores *		5,399		73,264
Big 5 Sporting Goods Corp.		2,520		38,480
Borders Group, Inc. *		5,576		17,676
Casey’s General Stores, Inc.		5,904		163,836
Cato Corp., Class A		3,254		55,578
Charlotte Russe Holding, Inc. *		2,478		43,092
Charming Shoppes, Inc. *		13,421		70,326
Children’s Place Retail Stores, Inc. *		2,763		83,802
CSS Industries, Inc.		950		19,836
First Cash Financial Services, Inc. *		2,774		52,123
Fossil, Inc. *		5,457		138,499
Gaiam, Inc., Class A *		2,234		12,466
Haverty Furniture Companies, Inc. *		2,229		26,012
hhgregg, Inc. *		1,478		25,540
Hibbett Sports, Inc. *		3,369		59,193
Hot Topic, Inc. *		5,293		36,839
HSN, Inc. *		4,665		48,516
Lumber Liquidators, Inc. *		1,680		36,960
New York & Company, Inc. *		3,042		14,085
Pacific Sunwear of California, Inc. *		7,848		34,688
Pier 1 Imports, Inc. *		10,398		26,307
Rent-A-Center, Inc. *		7,657		151,073
School Specialty, Inc. *		2,210		50,366
Sonic Automotive, Inc. (a)		2,743		35,165
The Buckle, Inc. (a)		2,926		77,393
The Wet Seal, Inc., Class A *		11,480		40,295
Tractor Supply Company *		4,142		194,923
Tuesday Morning Corp. *		3,703		16,664
Zale Corp. *		2,972		19,259
Zumiez, Inc. *		2,374		30,007
				1,692,263
Sanitary Services - 0.19%
Darling International, Inc. *		9,735		68,242
Flanders Corp. *		2,527		12,635
Insituform Technologies, Inc., Class A *		4,571		87,535
PMFG, Inc. *		1,679		18,553
				186,965
Semiconductors - 3.19%
Actel Corp. *		3,237		35,218
Advanced Analogic Technologies, Inc. *		5,533		24,954
Advanced Energy Industries, Inc. *		3,849		40,260
American Superconductor Corp. * (a)		5,028		162,455
Amkor Technology, Inc. *		12,664		70,159
Applied Micro Circuits Corp. *		7,621		60,511
ATMI, Inc. *		3,723		63,254
Brooks Automation, Inc. *		7,562		49,153
Cabot Microelectronics Corp. *		2,741		94,701
Cavium Networks, Inc. * (a)		4,231		85,932
Ceva, Inc. *		2,707		23,578
Cirrus Logic, Inc. *		7,775		38,564
CSR PLC *		5,690		43,620
Cymer, Inc. *		3,438		120,949
Diodes, Inc. *		3,723		75,465
DSP Group, Inc. *		2,875		22,712
Emcore Corp. *		9,706		10,288
Emulex Corp. *		9,598		93,005
Entegris, Inc. *		13,247		52,988
Entropic Communications, Inc. *		6,197		18,963
Exar Corp. *		4,435		33,307
FormFactor, Inc. *		5,731		125,738
Hittite Microwave Corp. *		2,495		85,878
Intellon Corp. *		2,691		13,536
IXYS Corp. *		2,960		20,128
Kopin Corp. *		8,233		31,697
Kulicke & Soffa Industries, Inc. *		7,018		36,915
Lattice Semiconductor Corp. *		14,331		35,254
Micrel, Inc.		5,558		43,186
Microsemi Corp. *		9,430		133,057
Microtune, Inc. *		7,304		14,462
MIPS Technologies, Inc., Class A *		5,427		19,049
MKS Instruments, Inc. *		5,740		105,788
Monolithic Power Systems, Inc. *		3,956		89,129
Netlogic Microsystems, Inc. * (a)		2,089		91,728
OmniVision Technologies, Inc. *		5,842		85,468
Pericom Semiconductor Corp. *		3,051		26,269
Photronics, Inc. *		4,903		22,358
PLX Technology, Inc. *		4,242		14,550
Power Integrations, Inc.		2,786		91,241
Rubicon Technology, Inc. * (a)		1,533		18,764
Rudolph Technologies, Inc. *		3,716		23,857
Semitool, Inc. *		3,039		19,966
Semtech Corp. *		7,054		128,877

The accompanying notes are an integral part of the financial statements.

260

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Semiconductors (continued)
Silicon Image, Inc. *		9,438	$	28,691
Skyworks Solutions, Inc. *		19,395		225,952
Techwell, Inc. *		2,134		19,121
Tessera Technologies, Inc. *		5,640		141,733
Triquint Semiconductor, Inc. *		17,121		125,326
Ultratech, Inc. *		2,934		31,775
Veeco Instruments, Inc. *		3,729		80,099
Volterra Semiconductor Corp. *		2,665		47,197
				3,196,825
Software - 3.65%
ACI Worldwide, Inc. *		4,153		56,315
Actuate Corp. *		5,313		29,859
Advent Software, Inc. *		1,778		68,791
American Reprographics Company *		4,318		39,467
American Software, Inc., Class A		3,110		19,593
ArcSight, Inc. *		2,141		41,428
AsiaInfo Holdings, Inc. *		3,400		58,548
Avid Technology, Inc. *		3,345		43,585
Blackbaud, Inc.		5,092		98,072
Blackboard, Inc. *		3,699		127,283
Bottomline Technologies, Inc. *		2,957		35,780
China Information Security Technology, Inc. *		3,529		13,587
CIBER, Inc. *		8,146		31,769
Commvault Systems, Inc. *		4,848		88,670
Concur Technologies, Inc. *		4,599		162,621
Deltek, Inc. *		2,178		15,660
DemandTec, Inc. *		2,370		20,074
DivX, Inc. *		4,195		21,898
Double-Take Software, Inc. *		2,280		20,018
Ebix, Inc. *		809		39,932
Eclipsys Corp. *		6,521		109,292
Epicor Software Corp. *		5,526		34,814
EPIQ Systems, Inc. *		3,836		57,502
FARO Technologies, Inc. *		2,045		34,785
GSE Systems, Inc. *		2,269		14,907
i2 Technologies, Inc. *		1,873		28,095
Igate Corp.		2,599		17,309
inContact, Inc. *		3,693		11,264
Innerworkings, Inc. *		3,085		17,708
Interactive Intelligence, Inc. *		1,518		26,140
iPass, Inc. *		7,789		11,372
JDA Software Group, Inc. *		3,078		59,529
Lawson Software, Inc. *		15,943		98,209
Manhattan Associates, Inc. *		2,698		48,105
ManTech International Corp. *		2,520		133,157
MedAssets, Inc. *		4,568		102,003
MicroStrategy, Inc., Class A *		1,041		64,282
Monotype Imaging Holdings, Inc. *		2,538		20,786
MSC Software Corp. *		5,402		40,947
NetSuite, Inc. * (a)		1,872		25,665
Omnicell, Inc. *		3,691		40,527
Omniture, Inc. * (a)		7,881		112,777
OpenTV Corp., Class A *		11,758		15,050
Opnet Technologies, Inc.		1,799		17,019
Pegasystems, Inc.		1,734		53,112
Progress Software Corp. *		4,636		103,290
PROS Holdings, Inc. *		2,430		19,634
Quality Systems, Inc. (a)		2,710		145,906
Quest Software, Inc. *		7,523		124,054
Riverbed Technology, Inc. * (a)		6,327		121,985
Rosetta Stone, Inc. * (a)		709		15,633
Smith Micro Software, Inc. *		3,312		38,254
SolarWinds, Inc. *		1,335		24,911
Solera Holdings, Inc. *		8,029		211,484
SPSS, Inc. *		2,120		105,576
Synchronoss Technologies, Inc. *		2,290		24,343
Take-Two Interactive Software, Inc. * (a)		9,319		97,849
Taleo Corp. *		3,655		66,119
THQ, Inc. *		7,906		43,562
Tradestation Group, Inc. *		4,035		28,931
Ultimate Software Group, Inc. * (a)		2,848		75,102
VeriFone Holdings, Inc. *		8,354		96,405
Websense, Inc. *		5,168		78,347
Zixit Corp. * (a)		8,190		14,906
				3,663,597
Steel - 0.17%
China Precision Steel, Inc. * (a)		3,937		9,882
General Steel Holdings, Inc. * (a)		1,870		7,012
Northwest Pipe Company *		1,111		36,918
Olympic Steel, Inc.		1,077		29,004
Worthington Industries, Inc.		6,951		91,545
				174,361
Telecommunications Equipment &
Services - 3.13%
ADC Telecommunications, Inc. *		11,231		95,576
ADTRAN, Inc.		6,360		144,626
Airvana, Inc. *		3,121		20,255
Alaska Communications Systems Group, Inc. (a)		5,462		43,532
Applied Signal Technology, Inc.		1,570		39,988
Arris Group, Inc. *		14,387		190,772
Aruba Networks, Inc. *		6,836		62,276
Atheros Communications, Inc. *		7,047		194,779
Cbeyond Communications, Inc. * (a)		2,752		39,519
Centennial Communications Corp., Class A *		9,875		74,754
Comtech Telecommunications Corp. *		3,275		111,416
Consolidated Communications Holdings, Inc.		2,874		40,523
DigitalGlobe, Inc. *		1,715		34,403
General Communication, Inc., Class A *		5,139		34,277
GeoEye, Inc. *		2,132		53,982
Global Crossing, Ltd. *		3,350		37,654
Globecomm Systems, Inc. *		2,771		20,977
Harmonic, Inc. *		11,195		73,887
Harris Stratex Networks, Inc., Class A *		7,078		42,893
Hughes Communications, Inc. *		1,030		26,790
Infinera Corp. *		9,848		68,936
InterDigital, Inc. *		5,078		106,435
Iowa Telecommunications Services, Inc.		3,917		44,693
J2 Global Communications, Inc. *		5,214		111,423
KVH Industries, Inc. *		2,053		15,521
Loral Space & Communications, Inc. *		1,209		24,954
Mastec, Inc. *		6,098		57,687

The accompanying notes are an integral part of the financial statements.

261

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Telecommunications Equipment &
Services (continued)
Network Equipment Technologies, Inc. *		3,894	$	25,856
Neutral Tandem, Inc. *		3,799		95,013
NTELOS Holdings Corp.		3,548		57,513
Oplink Communications, Inc. *		2,602		36,116
PAETEC Holding Corp. *		14,343		40,160
Plantronics, Inc.		5,662		135,265
Polycom, Inc. *		9,682		228,398
Powerwave Technologies, Inc. *		16,089		19,950
Premiere Global Services, Inc. *		7,138		66,812
RCN Corp. *		4,363		40,881
SAVVIS, Inc. *		4,204		71,300
Shenandoah Telecommunications Company		2,701		46,592
ShoreTel, Inc. *		5,022		31,639
Sonus Networks, Inc. *		24,031		50,705
Starent Networks Corp. *		4,530		91,687
SureWest Communications *		1,879		23,807
Symmetricom, Inc. *		5,449		28,607
Tekelec, Inc. *		7,685		119,656
UTStarcom, Inc. *		13,151		21,568
Viasat, Inc. *		3,049		73,877
Virgin Mobile USA, Inc. *		4,334		20,413
				3,138,343
Telephone - 0.17%
Atlantic Tele-Network, Inc.		1,046		49,999
Cincinnati Bell, Inc. *		25,116		83,636
D&E Communications, Inc.		2,017		21,037
Hickory Tech Corp.		2,345		20,402
				175,074
Tires & Rubber - 0.13%
Cooper Tire & Rubber Company		6,791		96,975
Myers Industries, Inc.		3,707		37,997
				134,972
Tobacco - 0.30%
Alliance One International, Inc. *		10,488		40,169
Schweitzer Mauduit International, Inc.		1,772		87,147
Universal Corp.		2,877		106,104
Vector Group, Ltd.		4,259		67,207
				300,627
Toys, Amusements & Sporting Goods - 0.05%
Jakks Pacific, Inc. *		3,445		46,163
Transportation - 0.85%
Air Transport Services Group, Inc. *		6,471		19,154
Aircastle, Ltd.		5,447		51,202
Atlas Air Worldwide Holdings, Inc. *		2,031		50,653
Bristow Group, Inc. *		3,399		99,251
DHT Maritime, Inc.		6,161		32,037
Dynamex, Inc. *		1,305		21,415
Eagle Bulk Shipping, Inc. * (a)		5,453		27,429
Genco Shipping & Trading, Ltd.		2,972		57,568
Golar LNG, Ltd.		3,804		37,850
Horizon Lines, Inc.		3,777		20,471
International Shipholding Corp.		797		23,894
Knightsbridge Tankers, Ltd.		2,176		28,201
Marten Transport, Ltd. *		1,966		33,343
Nordic American Tanker Shipping, Ltd. (a)		4,793		142,688
Pacer International, Inc.		4,695		19,437
PHI, Inc. *		1,619		33,772
Saia, Inc. *		1,667		29,506
Ship Finance International, Ltd. (a)		5,004		63,351
TBS International, Ltd. *		1,680		13,726
Textainer Group Holdings, Ltd.		1,080		15,325
Ultrapetrol Bahamas, Ltd. *		3,003		14,474
USA Truck, Inc. *		1,361		18,128
				852,875
Transport-Marine - 0.07%
American Commercial Lines, Inc. *		1,179		25,230
General Maritime Corp. (a)		5,705		45,355
				70,585
Travel Services - 0.10%
Ambassadors Group, Inc.		2,211		34,890
Interval Leisure Group, Inc. *		4,721		49,523
Universal Travel Group. *		1,189		11,652
				96,065
Trucking & Freight - 0.71%
Arkansas Best Corp.		2,966		94,615
Celadon Group, Inc. *		2,882		28,215
Forward Air Corp.		3,435		79,280
Heartland Express, Inc. (a)		5,898		83,516
Hub Group, Inc., Class A *		4,354		95,483
Knight Transportation, Inc. (a)		6,610		108,999
Old Dominion Freight Lines, Inc. *		3,240		115,927
Werner Enterprises, Inc.		4,946		86,456
YRC Worldwide, Inc. * (a)		7,439		16,589
				709,080
Utility Service - 0.24%
Cal Dive International, Inc. *		5,209		54,330
California Water Service Group		2,301		85,643
Consolidated Water Company, Ltd.		1,788		32,899
ENGlobal Corp. *		2,419		10,692
SJW Corp.		1,700		37,519
Southwest Water Company		4,024		18,108
				239,191
Water Treatment Systems - 0.02%
Energy Recovery, Inc. * (a)		4,058		21,345
TOTAL COMMON STOCKS (Cost $77,251,367)			$	98,331,320
PREFERRED STOCKS - 0.03%
Healthcare Products - 0.03%
Inverness Medical Innovations, Inc., Series B, 3.00%		135		31,455
TOTAL PREFERRED STOCKS (Cost $32,325)			$	31,455

The accompanying notes are an integral part of the financial statements.

262

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Index Fund (continued)
	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS - 10.77%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		1,079,508	$	10,807,283
TOTAL SHORT TERM INVESTMENTS (Cost $10,798,833)			$	10,807,283
REPURCHASE AGREEMENTS - 0.85%
Repurchase Agreement with State
Street Corp. dated 08/31/2009 at
0.07% to be repurchased at
$847,002 on 09/01/2009,
collateralized by $810,000 Federal
Home Loan Bank, 5.5% due
07/15/2037 (valued at $865,688,
including interest)	$	847,000	$	847,000
TOTAL REPURCHASE AGREEMENTS (Cost $847,000)			$	847,000
Total Investments (Small Cap Index Fund) (Cost $88,929,525) - 109.68%			$	110,017,058
Other assets and liabilities, net - (9.68)%				(9,711,917	)
TOTAL NET ASSETS - 100.00%			$	100,305,141

Small Cap Opportunities Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 99.66%
Advertising - 0.61%
Interpublic Group of Companies, Inc. *		78,759	$	495,394
inVentiv Health, Inc. *		5,073		80,661
Marchex, Inc., Class B		3,900		16,692
ValueClick, Inc. *		258		2,644
				595,391
Aerospace - 1.90%
AAR Corp. *		31,541		536,512
Aerovironment, Inc. *		12,065		339,389
BE Aerospace, Inc. *		16,900		289,497
CPI Aerostructures, Inc. *		42		292
Curtiss-Wright Corp.		12,145		395,563
Ducommun, Inc.		856		15,459
Esterline Technologies Corp. *		5,502		170,122
LMI Aerospace, Inc. *		716		6,594
SIFCO Industries, Inc. *		400		5,660
Triumph Group, Inc.		2,400		104,400
				1,863,488
Agriculture - 0.11%
Andersons, Inc.		2,861		94,127
Fresh Del Monte Produce, Inc. *		500		11,450
				105,577
Air Travel - 0.61%
Airtran Holdings, Inc. * (a)		3,200		21,280
Alaska Air Group, Inc. *		1,100		27,753
Allegiant Travel Company * (a)		9,992		391,587
Republic Airways Holdings, Inc. *		387		3,564
SkyWest, Inc.		10,189		157,420
				601,604
Aluminum - 0.09%
Century Aluminum Company *		8,300		84,909
Apparel & Textiles - 2.66%
Brown Shoe, Inc.		5,562		41,715
Carter's, Inc. *		20,072		505,012
Crocs, Inc. * (a)		6,000		38,100
Culp, Inc. *		200		1,170
dELiA*s, Inc. *		2,000		5,000
Delta Apparel, Inc. *		200		1,658
G-III Apparel Group, Ltd. *		1,378		20,601
Heelys, Inc. *		1,265		2,935
Iconix Brand Group, Inc. *		10,333		177,521
Interface, Inc., Class A		1,695		11,204
Jones Apparel Group, Inc.		4,200		65,478
K-Swiss, Inc., Class A		5,117		49,328
Lakeland Industries, Inc. *		700		6,510
Liz Claiborne, Inc. *		10,200		43,350
Mohawk Industries, Inc. *		2,900		145,348
Movado Group, Inc.		2,000		25,700
Phillips-Van Heusen Corp.		23,235		877,818
Quiksilver, Inc. *		1,000		2,820
RG Barry Corp. *		1,361		11,283
Rocky Brands, Inc. *		395		1,963
Skechers U.S.A., Inc., Class A *		6,609		117,706
Timberland Company, Class A *		2,796		36,236
Unifirst Corp.		1,724		68,770
Volcom, Inc. *		25,511		361,491
				2,618,717
Auto Parts - 1.31%
ArvinMeritor, Inc.		9,590		70,103
Exide Technologies *		6,179		43,933
Federal Mogul Corp. *		100		1,258
Federal Signal Corp.		2,680		19,162
Miller Industries, Inc. *		2,284		23,114
Modine Manufacturing Company		600		5,082
Superior Industries International, Inc.		3,050		43,371
Tenneco, Inc. *		4,784		75,109
The Pep Boys - Manny, Moe & Jack		2,900		25,897
Titan International, Inc. (a)		26,779		222,533
TRW Automotive Holdings Corp. *		42,952		758,103
				1,287,665
Auto Services - 0.79%
AutoNation, Inc. * (a)		25,000		474,500
Dollar Thrifty Automotive Group, Inc. *		300		5,952
Hertz Global Holdings, Inc. *		26,841		266,263
Lithia Motors, Inc., Class A		1,948		24,954
				771,669
Automobiles - 0.62%
Americas Car Mart, Inc. *		1,901		39,160
Group 1 Automotive, Inc.		4,600		129,582
Penske Auto Group, Inc. (a)		15,600		275,964

The accompanying notes are an integral part of the financial statements.

263

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Automobiles (continued)
Rush Enterprises, Inc., Class B *		12,678	$	161,011
				605,717
Banking - 5.98%
1st Source Corp.		744		12,053
Abington Bancorp, Inc.		1,501		12,128
Ameris Bancorp		1,940		12,513
Associated Banc Corp.		7,990		82,856
Atlantic Coast Federal Corp.		901		1,730
B of I Holding, Inc. *		100		770
BancFirst Corp.		8,672		317,222
Bancorp, Inc. *		2,338		15,454
BancTrust Financial Group, Inc. (a)		2,912		10,833
Bank Granite Corp. *		857		1,868
Bank Mutual Corp.		2,812		24,717
Bank of Florida Corp. *		2,087		5,218
Bank of the Ozarks, Inc.		1,441		35,939
BankAtlantic Bancorp, Inc. (a)		1,165		4,730
BankFinancial Corp.		3,921		38,465
Banner Corp. (a)		2,606		8,443
Berkshire Hill Bancorp, Inc.		2,325		52,336
Boston Private Financial Holdings, Inc.		7,834		39,327
Cadence Financial Corp.		768		1,405
Capitol Bancorp, Ltd. (a)		1,108		5,208
Cardinal Financial Corp.		1,774		14,015
Cascade Financial Corp.		800		1,352
Cathay General Bancorp		5,610		51,836
Center Financial Corp.		2,517		12,031
Central Jersey Bancorp *		710		4,331
Central Pacific Financial Corp. (a)		5,755		15,999
City National Corp.		400		15,800
CoBiz, Inc.		3,084		14,587
Columbia Banking System, Inc.		2,261		37,103
Commerce Bancshares, Inc.		12,931		474,956
Community Trust Bancorp, Inc.		15,189		406,458
Crescent Financial Corp. *		510		2,219
East West Bancorp, Inc.		6,842		63,015
Encore Bancshares, Inc. *		700		5,733
Enterprise Financial Services Corp.		1,783		20,059
ESSA Bancorp, Inc.		162		2,051
F.N.B. Corp.		10,120		71,650
Fidelity Southern Corp. *		735		2,212
First BanCorp (PR)		8,900		28,391
First Bancorp		1,415		24,819
First Busey Corp. (a)		4,715		29,327
First Defiance Financial Corp.		1,060		17,638
First Financial Bankshares, Inc. (a)		7,727		385,114
First Financial Holdings, Inc.		600		10,764
First Horizon National Corp. *		17,821		238,445
First Merchants Corp.		900		6,390
First Midwest Bancorp, Inc.		7,100		72,846
First Regional Bancorp *		500		550
First Security Group, Inc.		1,566		6,264
FirstMerit Corp.		20,488		368,169
Flushing Financial Corp.		3,433		45,144
FNB United Corp.		1,184		2,948
Great Southern Bancorp, Inc. (a)		62		1,305
Greene County Bancshares, Inc.		1,600		9,984
Hampton Roads Bankshares, Inc. (a)		1,451		4,411
Heartland Financial USA, Inc.		185		2,769
Heritage Commerce Corp.		1,454		6,718
Home Federal Bancorp, Inc.		2,577		28,991
Huntington Bancshares, Inc.		1,700		7,752
IBERIABANK Corp.		1,900		92,074
Independent Bank Corp.		3,864		89,529
International Bancshares Corp.		8,700		134,328
Intervest Bancshares Corp. *		337		1,011
Investors Bancorp, Inc. *		452		4,176
K-Fed Bancorp		79		690
Lakeland Bancorp, Inc.		2,316		20,520
Legacy Bancorp, Inc.		689		7,593
Louisiana Bancorp, Inc. *		100		1,384
Macatawa Bank Corp. *		400		908
MainSource Financial Group, Inc.		3,164		20,376
MB Financial, Inc.		3,353		46,439
MBT Financial Corp.		1,037		2,188
Mercantile Bank Corp.		431		1,918
Nara Bancorp, Inc.		3,478		30,433
National Penn Bancshares, Inc.		11,500		64,400
New England Bancshares, Inc.		100		645
NewAlliance Bancshares, Inc.		2,600		30,576
NewBridge Bancorp *		300		651
North Valley Bancorp		215		796
Old Second Bancorp, Inc. (a)		1,654		9,130
Oriental Financial Group, Inc.		1,785		24,169
Pacific Capital Bancorp		5,073		12,327
Pacific Mercantile Bancorp *		1,399		4,309
Peoples Bancorp, Inc.		2,119		33,501
Pinnacle Financial Partners, Inc. *		4,546		68,508
Preferred Bank/Los Angeles		866		2,988
Provident Financial Holdings, Inc.		505		4,070
Renasant Corp.		3,789		57,669
Rome Bancorp, Inc.		600		5,328
Sandy Spring Bancorp, Inc.		2,520		39,589
Seacoast Banking Corp. of Florida		3,000		8,490
Southern Community Financial Corp.		3,400		9,078
Southwest Bancorp, Inc.		2,689		34,769
State Bancorp, Inc.		240		1,939
StellarOne Corp.		4,258		59,527
Sterling Bancshares, Inc.		5,724		45,506
Sterling Financial Corp. (a)		4,464		9,464
Sun Bancorp, Inc., New Jersey *		739		4,109
Superior Bancorp *		117		309
Susquehanna Bancshares, Inc. (a)		13,048		76,200
SVB Financial Group * (a)		4,800		190,800
Texas Capital Bancshares, Inc. *		32,895		544,412
TIB Financial Corp. *		2,482		3,649
TierOne Corp. *		1,101		2,576
Umpqua Holdings Corp.		11,278		116,276
United Community Banks, Inc. * (a)		1,204		8,115
United Financial Bancorp, Inc.		677		8,320
United Western Bancorp, Inc.		928		4,956
Virginia Commerce Bancorp, Inc. *		2,545		9,009

The accompanying notes are an integral part of the financial statements.

264

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Banking (continued)
Washington Banking Company		700	$	6,881
Washington Federal, Inc.		8,700		129,108
Webster Financial Corp.		4,659		60,893
WesBanco, Inc.		1,021		14,988
West Coast Bancorp		200		486
Western Alliance Bancorp *		4,832		35,419
Westfield Financial, Inc.		1,115		10,202
Whitney Holding Corp. (a)		8,000		72,080
Wilshire Bancorp, Inc.		939		7,775
Wintrust Financial Corp.		3,069		84,919
Yadkin Valley Financial Corp.		1,614		10,023
Zions Bancorp (a)		16,900		298,623
				5,878,485
Biotechnology - 0.24%
ARCA Biopharma, Inc. *		100		336
Harvard Bioscience, Inc. *		3,612		12,208
Intermune, Inc. * (a)		14,793		224,558
				237,102
Broadcasting - 0.78%
Belo Corp., Class A		1,800		6,012
Fisher Communications, Inc. *		1,611		33,235
Journal Communications, Inc.		800		2,960
Liberty Media Corp. - Capital, Series A *		9,389		179,236
New Frontier Media, Inc. *		600		1,314
Sinclair Broadcast Group, Inc., Class A		3,666		10,375
World Wrestling Entertainment, Inc., Class A		37,568		535,719
				768,851
Building Materials & Construction - 1.67%
Apogee Enterprises, Inc.		3,181		41,989
Beacon Roofing Supply, Inc. *		32,213		541,823
BlueLinx Holdings, Inc. *		527		2,861
Dycom Industries, Inc. *		3,796		42,591
Griffon Corp. *		10,221		108,036
Interline Brands, Inc. *		5,263		87,945
LSI Industries, Inc.		1,192		8,821
MYR Group, Inc. *		23,892		489,786
Owens Corning, Inc. *		9,932		221,881
Texas Industries, Inc. (a)		2,400		95,424
US Home Systems, Inc. *		400		1,056
				1,642,213
Business Services - 3.63%
ABM Industries, Inc.		30,983		694,949
Acxiom Corp. *		7,534		68,710
AMERCO, Inc. *		3,360		152,880
Ariba, Inc. *		72,637		832,420
Barrett Business Services, Inc.		253		2,639
Bowne & Company, Inc.		2,520		17,640
CDI Corp.		2,684		40,770
Compass Diversified Trust		2,427		24,585
Convergys Corp. *		15,251		165,321
Core-Mark Holding Company, Inc. *		900		25,839
CRA International, Inc. *		1,239		34,605
Diamond Management & Technology Consultants, Inc.		4,100		25,666
Electro Rent Corp.		1,632		16,630
Ennis Business Forms, Inc.		3,063		41,749
Euronet Worldwide, Inc. *		24,873		587,500
Harte-Hanks, Inc.		11,657		152,007
Heidrick & Struggles International, Inc.		1,007		21,167
ICT Group, Inc. *		3,198		35,178
infoGROUP, Inc. *		2,670		16,474
Kelly Services, Inc., Class A		4,014		46,081
Kenexa Corp. *		1,977		24,238
Kforce, Inc. *		2,293		25,682
Korn/Ferry International *		3,249		44,934
LECG Corp. *		3,950		13,272
On Assignment, Inc. *		5,371		21,484
OraSure Technologies, Inc. *		1,126		2,973
PC Mall, Inc. *		932		7,092
PHH Corp. *		8,361		177,755
Resource America, Inc.		500		2,545
ScanSource, Inc. *		1,044		29,221
Schawk, Inc., Class A		1,975		22,377
SonicWALL, Inc. *		7,879		59,014
SRA International, Inc., Class A *		2,312		45,939
StarTek, Inc. *		1,037		8,016
The Hackett Group, Inc. *		1,472		3,857
Versar, Inc. *		353		1,355
Viad Corp.		2,317		41,868
Volt Information Sciences, Inc. *		3,468		35,027
				3,569,459
Cable & Television - 0.00%
Outdoor Channel Holdings, Inc. *		671		4,469
Casino Hotels - 0.00%
Gaming Partners International Corp. *		300		1,770
Cellular Communications - 0.08%
Brightpoint, Inc. *		3,167		23,246
Novatel Wireless, Inc. *		5,100		49,215
Tessco Technologies, Inc.		379		6,340
				78,801
Chemicals - 2.00%
Aceto Corp.		1,200		8,028
American Pacific Corp. *		624		5,098
Cabot Corp.		7,889		156,123
Cambrex Corp. *		3,548		19,408
Cytec Industries, Inc.		7,800		225,342
FMC Corp.		8,681		414,084
Huntsman Corp.		2,100		18,039
ICO, Inc. *		3,571		14,641
KMG Chemicals, Inc.		800		7,888
LSB Industries, Inc. *		1,527		23,577
Minerals Technologies, Inc.		2,100		94,164
OM Group, Inc. *		5,754		156,566
Penford Corp.		1,910		12,300
Quaker Chemical Corp.		975		20,202
Rockwood Holdings, Inc. *		9,739		198,384
Spartech Corp.		1,700		19,618
Westlake Chemical Corp. (a)		6,868		165,107
Zep, Inc.		21,895		349,882

The accompanying notes are an integral part of the financial statements.

265

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Chemicals (continued)
Zoltek Companies, Inc. *		5,800	$	54,056
				1,962,507
Coal - 0.00%
Patriot Coal Corp. *		200		1,772
Commercial Services - 1.24%
Collectors Universe, Inc. *		740		3,463
Great Lakes Dredge & Dock Company		4,000		26,160
Live Nation, Inc. *		9,824		69,063
Perceptron, Inc. *		246		1,058
Perficient, Inc. *		1,626		12,618
Team, Inc. *		22,163		386,301
United Rentals, Inc. *		10,100		92,819
Wright Express Corp. *		20,024		631,156
				1,222,638
Computer Services - 0.04%
Acorn Energy, Inc. *		800		3,808
Dynamics Research Corp. *		1,800		24,804
INX, Inc. *		314		1,975
TechTeam Global, Inc. *		1,203		8,770
				39,357
Computers & Business Equipment - 2.69%
3Com Corp. *		26,693		116,114
Avocent Corp. *		7,967		130,021
Benchmark Electronics, Inc. *		12,967		212,659
Blue Coat Systems, Inc. *		767		15,041
CACI International, Inc., Class A *		13,948		641,050
Cray, Inc. *		1,700		12,427
Datalink Corp. *		1,469		5,435
Digi International, Inc. *		2,751		23,576
Electronics for Imaging, Inc. *		8,831		93,962
Gerber Scientific, Inc. *		3,231		13,861
Hurco Companies, Inc. *		200		3,334
Immersion Corp. *		4,187		15,910
Ingram Micro, Inc., Class A *		21,411		358,848
Internap Network Services Corp. *		8,747		26,416
Interphase Corp. *		400		1,692
L-1 Identity Solutions, Inc. *		10,594		75,959
NETGEAR, Inc. *		847		14,467
PAR Technology Corp. *		1,700		10,336
Parametric Technology Corp. *		31,050		412,965
Plexus Corp. *		3,370		84,857
RadiSys Corp. *		1,416		10,337
Sigma Designs, Inc. * (a)		3,900		55,107
Silicon Graphics International Corp. *		2,900		15,921
Smart Modular Technologies (WWH), Inc. *		5,730		21,946
Standard Microsystems Corp. *		1,599		37,225
Tech Data Corp. *		5,999		228,562
Virage Logic Corp. *		1,237		5,938
				2,643,966
Construction & Mining Equipment - 0.31%
Gulf Islands Fabrication, Inc.		1,369		20,494
Kaman Corp., Class A		2,408		49,918
Layne Christensen Company *		2,684		69,247
Rowan Companies, Inc.		8,000		165,680
				305,339
Construction Materials - 0.50%
Ameron International Corp.		1,300		105,261
Columbus McKinnon Corp. *		2,831		34,821
Standex International Corp.		1,850		31,654
Universal Forest Products, Inc.		2,234		92,264
USG Corp. * (a)		15,000		222,900
				486,900
Containers & Glass - 0.21%
Bway Holding Company *		2,549		39,509
Mobile Mini, Inc. *		6,498		115,210
TAL International Group, Inc.		4,002		49,305
				204,024
Correctional Facilities - 0.02%
Cornell Corrections, Inc. *		761		15,288
Cosmetics & Toiletries - 0.16%
CCA Industries, Inc.		100		400
Elizabeth Arden, Inc. *		4,000		41,200
Helen of Troy, Ltd. *		5,400		116,748
Parlux Fragrances, Inc. *		900		1,836
				160,184
Crude Petroleum & Natural Gas - 2.19%
Arena Resources, Inc. *		13,033		398,549
Bill Barrett Corp. *		2,756		80,585
Cimarex Energy Company		10,728		418,821
Forest Oil Corp. *		32,024		503,417
Geokinetics, Inc. *		868		14,235
Georesources, Inc. *		659		6,867
Gulfport Energy Corp. *		2,396		17,970
Harvest Natural Resources, Inc. *		3,000		15,510
Patterson-UTI Energy, Inc.		7,900		104,991
Penn Virginia Corp.		24,141		462,542
Petroquest Energy, Inc. *		7,291		30,331
Pioneer Natural Resources Company		500		14,480
Swift Energy Company *		300		6,111
Toreador Resources Corp. *		408		2,060
Western Refining, Inc. *		12,756		77,429
				2,153,898
Domestic Oil - 0.94%
Atlas America, Inc.		4,264		94,575
Berry Petroleum Company, Class A		200		4,514
Comstock Resources, Inc. *		13,653		482,360
Encore Aquisition Company *		900		33,921
Helix Energy Solutions Group, Inc. *		2,000		23,400
Mariner Energy, Inc. *		500		6,065
Natural Gas Services Group, Inc. *		996		14,233
Oil States International, Inc. *		8,316		245,073
Union Drilling, Inc. *		3,895		24,383
				928,524
Drugs & Health Care - 1.62%
Invacare Corp. (a)		22,300		483,018

The accompanying notes are an integral part of the financial statements.

266

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Drugs & Health Care (continued)
Mannatech, Inc.		838	$	3,268
Molina Healthcare, Inc. *		1,816		36,774
Nutraceutical International Corp. *		1,856		21,344
Osteotech, Inc. *		3,500		15,120
Quidel Corp. *		37,354		576,746
Res-Care, Inc. *		606		8,793
Vivus, Inc. *		72,630		449,580
				1,594,643
Electrical Equipment - 2.10%
Anixter International, Inc. * (a)		11,438		401,245
Baldor Electric Company		19,855		557,330
C & D Technologies, Inc. * (a)		2,160		4,320
Cohu, Inc.		2,443		28,998
Encore Wire Corp.		3,200		75,776
General Cable Corp. *		11,009		388,397
GrafTech International, Ltd. *		30,385		432,379
Littelfuse, Inc. *		664		16,627
Methode Electronics, Inc.		4,959		42,796
Wesco International, Inc. *		4,994		120,006
				2,067,874
Electrical Utilities - 0.97%
Avista Corp.		16,856		329,029
EnerNOC, Inc. * (a)		9,886		266,329
Mirant Corp. *		13,400		225,790
Pike Electric Corp. *		2,944		32,708
RRI Energy, Inc. *		16,200		96,228
				950,084
Electronics - 2.52%
Anadigics, Inc. *		4,400		16,940
Arrow Electronics, Inc. *		13,883		383,726
AVX Corp.		5,685		66,003
Ballantyne of Omaha, Inc. *		200		538
Bel Fuse, Inc., Class B		1,382		23,356
Belden, Inc.		18,328		383,605
California Micro Devices Corp. *		2,043		5,904
Checkpoint Systems, Inc. *		6,638		110,656
Cynosure, Inc. *		1,700		18,615
DDi Corp. *		2,965		12,038
Enersys *		8,100		161,109
Harman International Industries, Inc.		4,715		141,403
Imation Corp.		4,497		38,674
Integrated Electrical Services, Inc. *		427		3,561
Integrated Silicon Solution, Inc. *		2,300		8,349
IntriCon Corp. *		80		256
Jabil Circuit, Inc.		8,749		95,802
Keithley Instruments, Inc.		605		3,025
LoJack Corp. *		1,501		7,760
Measurement Specialties, Inc. *		1,381		14,611
MEMSIC, Inc. *		200		722
Mercury Computer Systems, Inc. *		800		7,616
Multi-Fineline Electronix, Inc. *		1,877		51,880
NU Horizons Electronics Corp. *		1,000		3,840
OSI Systems, Inc. *		25,394		428,397
Rogers Corp. *		1,400		36,540
Spectrum Control, Inc. *		1,417		13,008
Stoneridge, Inc. *		3,838		20,418
Sycamore Networks, Inc. *		50,735		154,234
Technitrol, Inc.		2,635		21,713
TTM Technologies, Inc. *		5,177		52,391
Vicon Industries, Inc. *		102		576
Vishay Intertechnology, Inc. *		21,032		169,728
Zoran Corp. *		1,712		18,918
				2,475,912
Energy - 0.49%
Alon USA Energy, Inc. (a)		4,863		45,810
Energen Corp.		8,687		364,767
Evergreen Solar, Inc. * (a)		21,098		35,656
Headwaters, Inc. *		6,604		25,359
Ocean Power Technologies, Inc. *		800		3,400
PowerSecure International, Inc. *		1,924		10,197
Rosetta Resources, Inc. *		100		1,181
				486,370
Engineering/R&D Services - 0.18%
National Technical Systems, Inc. *		500		2,250
Tutor Perini Corp. * (a)		9,100		178,542
				180,792
Financial Services - 3.76%
Affiliated Managers Group, Inc. * (a)		6,199		404,981
Altisource Portfolio Solutions SA *		2,130		30,523
AmeriCredit Corp. * (a)		15,277		263,681
Asset Acceptance Capital Corp. *		1,117		8,132
Asta Funding, Inc.		1,622		14,192
Capital Southwest Corp.		497		37,643
CIT Group, Inc. (a)		43,300		75,342
CompuCredit Holdings Corp. * (a)		3,308		14,456
Cowen Group, Inc. *		2,427		15,775
Delphi Financial Group, Inc.		4,800		112,176
Dollar Financial Corp. *		557		9,709
Encore Capital Group, Inc. *		3,459		51,539
FCStone Group, Inc. *		2,478		11,870
Federal Agricultural Mortgage Corp., Class C (a)		1,387		11,581
Financial Federal Corp.		2,740		64,171
First Financial Northwest, Inc.		3,817		27,864
Fulton Financial Corp.		14,960		109,806
GAMCO Investors, Inc., Class A		8,295		374,353
GATX Corp.		7,284		199,800
GFI Group, Inc.		7,507		53,750
Hampden Bancorp, Inc.		942		9,985
Harris & Harris Group, Inc. *		4,595		27,065
Investment Technology Group, Inc. *		5,191		127,906
Janus Capital Group, Inc.		19,699		250,571
JMP Group, Inc.		2,800		28,700
KBW, Inc. * (a)		22,481		643,406
Legg Mason, Inc.		1,100		31,636
MarketAxess Holdings, Inc. *		425		4,713
MCG Capital Corp. *		6,015		18,225
Medallion Financial Corp.		1,250		10,437
MF Global, Ltd. * (a)		14,500		103,675
MicroFinancial, Inc.		400		1,380
National Financial Partners Corp.		6,530		51,261

The accompanying notes are an integral part of the financial statements.

267

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
Nelnet, Inc., Class A *		4,314	$	63,675
NewStar Financial, Inc. *		3,579		9,878
Ocwen Financial Corp. *		6,390		66,137
Penson Worldwide, Inc. *		3,093		31,363
Student Loan Corp.		1,358		66,759
Synovus Financial Corp.		51,541		190,702
Taylor Capital Group, Inc. *		968		6,457
Thomas Weisel Partners Group, Inc. *		3,724		16,497
Tree.com, Inc. *		1,000		7,050
United Panam Financial Corp. *		100		325
World Acceptance Corp. * (a)		1,317		34,282
				3,693,429
Food & Beverages - 1.63%
B&G Foods, Inc.		5,392		49,175
Chiquita Brands International, Inc. *		3,923		60,414
Del Monte Foods Company		12,377		129,835
Farmer Brothers Company		100		2,065
Flowers Foods, Inc.		15,094		358,784
Hain Celestial Group, Inc. *		6,739		107,824
Imperial Sugar Company		1,700		23,698
MGP Ingredients, Inc. *		68		258
Morton's Restaurant Group, Inc. *		3,048		12,101
Smithfield Foods, Inc. * (a)		19,535		239,694
Tasty Baking Company		200		1,400
TreeHouse Foods, Inc. * (a)		16,653		616,994
				1,602,242
Food-Meat Products - 0.01%
HQ Sustainable Maritime Industries, Inc. *		1,244		10,350
Funeral Services - 0.20%
Service Corp. International		27,375		193,815
Furniture & Fixtures - 0.19%
Bassett Furniture Industries, Inc. *		196		992
Ethan Allen Interiors, Inc. (a)		4,200		65,268
Furniture Brands International, Inc. *		4,900		27,391
Hooker Furniture Corp.		2,045		27,219
Kimball International, Inc., Class B		1,813		11,530
La-Z-Boy, Inc.		4,400		37,268
Stanley Furniture Company, Inc.		1,600		19,392
				189,060
Gas & Pipeline Utilities - 0.64%
Crosstex Energy, Inc.		1,300		4,979
Global Industries, Ltd. *		19,600		186,200
UGI Corp.		16,982		433,211
				624,390
Healthcare Products - 1.61%
Acme United Corp.		300		2,625
AngioDynamics, Inc. *		1,724		22,326
Aspect Medical Systems, Inc. *		723		4,649
Cutera, Inc. *		2,620		22,899
Haemonetics Corp. *		8,554		450,283
Health Tronics, Inc. *		6,500		16,640
Home Diagnostics, Inc. *		812		4,864
Integramed America, Inc. *		400		3,400
Inverness Medical Innovations, Inc. * (a)		7,254		258,242
LCA-Vision, Inc. *		1,530		8,293
LeMaitre Vascular, Inc. *		300		1,026
Medtox Scientific, Inc. *		623		5,700
Owens & Minor, Inc.		10,704		473,652
Prospect Medical Holdings, Inc. *		100		420
RTI Biologics, Inc. *		2,303		10,479
SonoSite, Inc. *		1,092		25,411
Spectranetics Corp. *		3,987		23,244
Symmetry Medical, Inc. *		3,526		38,856
The Cooper Companies, Inc.		7,100		193,972
TomoTherapy, Inc. *		3,800		12,730
Young Innovations, Inc.		200		4,696
				1,584,407
Healthcare Services - 2.03%
Air Methods Corp. *		1,657		56,553
Allied Healthcare International, Inc. *		7,732		19,407
American Dental Partners, Inc. *		1,902		24,574
AMN Healthcare Services, Inc. *		6,015		59,368
Assisted Living Concepts, Inc. *		1,680		33,986
athenahealth, Inc. *		6,118		246,127
Brookdale Senior Living, Inc.		7,591		120,621
Capital Senior Living Corp. *		2,225		11,993
Eastern Insurance Holdings, Inc.		1,600		15,552
Emeritus Corp. *		4,684		84,453
Enzo Biochem, Inc. *		1,536		7,818
Gentiva Health Services, Inc. *		23,685		522,254
Health Net, Inc. *		13,712		210,068
Healthways, Inc. *		5,668		74,137
Nighthawk Radiology Holdings, Inc. *		2,214		13,793
NovaMed, Inc. * (a)		2,737		11,578
Skilled Healthcare Group, Inc. *		53,018		400,816
Triple-S Management Corp. *		3,488		64,668
WellCare Health Plans, Inc. *		600		14,562
				1,992,328
Homebuilders - 0.63%
Beazer Homes USA, Inc. * (a)		3,500		15,085
Cavco Industries, Inc. *		248		8,013
Lennar Corp., Class A		12,600		190,890
M/I Homes, Inc. *		2,600		41,132
Meritage Homes Corp. *		6,100		136,701
Pulte Homes, Inc.		8,190		104,668
Ryland Group, Inc.		5,000		114,600
Standard Pacific Corp. *		2,800		10,164
				621,253
Hotels & Restaurants - 2.79%
BJ's Restaurants, Inc. *		3,322		56,972
Boyd Gaming Corp. *		15,073		154,951
Brinker International, Inc.		27,487		400,211
Caribou Coffee Company, Inc. *		500		3,875
DineEquity, Inc. * (a)		17,888		377,079
Luby's Cafeterias, Inc. *		1,984		8,630
Marcus Corp.		1,504		18,830
McCormick & Schmick's Seafood Restaurants, Inc. *		2,930		25,813
O'Charley's, Inc.		2,300		17,595

The accompanying notes are an integral part of the financial statements.

268

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hotels & Restaurants (continued)
Papa John's International, Inc. *		15,643	$	364,951
Red Robin Gourmet Burgers, Inc. *		2,300		44,344
Rubio's Restaurants, Inc. *		1,314		7,963
Ruby Tuesday, Inc. *		4,425		32,303
Sonic Corp. *		39,717		453,965
Texas Roadhouse, Inc., Class A *		34,422		350,760
The Steak & Shake Company * (a)		4,448		46,615
Wyndham Worldwide Corp.		24,966		378,235
				2,743,092
Household Appliances - 0.00%
Lifetime Brands, Inc.		120		685
Household Products - 0.09%
Blyth, Inc.		347		15,789
Central Garden & Pet Company *		1,400		16,996
Jarden Corp. *		2,206		53,716
				86,501
Industrial Machinery - 3.67%
Alamo Group, Inc.		856		12,284
Albany International Corp., Class A		3,813		65,545
Altra Holdings, Inc. *		2,170		20,832
Briggs & Stratton Corp. (a)		8,405		148,264
Cascade Corp.		991		25,251
Chart Industries, Inc. *		19,281		359,783
Cognex Corp.		1,647		26,385
Dionex Corp. *		7,434		447,081
Dresser-Rand Group, Inc. *		17,770		527,769
EnPro Industries, Inc. *		2,500		53,800
Gencor Industries, Inc. *		604		4,421
H&E Equipment Services, Inc. *		2,836		28,417
Intevac, Inc. *		3,491		40,775
Lufkin Industries, Inc.		8,243		364,753
Manitowoc Company, Inc.		19,800		131,472
NACCO Industries, Inc., Class A		1,100		64,350
Quixote Corp. *		83		174
Robbins & Myers, Inc.		4,900		113,778
Rofin-Sinar Technologies, Inc. *		12,033		273,630
Sauer-Danfoss, Inc.		3,807		21,243
Tennant Company		2,700		69,039
Twin Disc, Inc.		2,123		26,941
Valmont Industries, Inc.		7,878		648,596
Watts Water Technologies, Inc., Class A		4,496		135,644
				3,610,227
Industrials - 0.00%
Brookfield Homes Corp. *		600		4,320
Insurance - 5.32%
21st Century Holding Company		1,233		4,550
Affirmative Insurance Holdings, Inc.		753		2,779
Alleghany Corp. *		100		27,760
American Financial Group, Inc.		5,300		135,945
American National Insurance Company		100		8,637
American Safety Insurance Holdings, Ltd. *		800		12,272
Argo Group International Holdings, Ltd. *		4,962		175,258
Arthur J. Gallagher & Company		19,738		469,172
Aspen Insurance Holdings, Ltd.		3,100		78,740
Assurant, Inc.		3,600		107,820
Assured Guaranty, Ltd. (a)		8,500		169,150
CNA Surety Corp. *		1,879		29,839
eHealth, Inc. *		24,694		456,839
Endurance Specialty Holdings, Ltd.		3,100		106,857
First Acceptance Corp. *		4,470		12,605
First American Corp.		900		28,368
First Mercury Financial Corp.		1,800		26,082
Flagstone Reinsurance Holdings, Ltd.		15,576		169,155
FPIC Insurance Group, Inc. *		13,288		424,020
Genworth Financial, Inc., Class A		5,648		59,643
Hallmark Financial Services, Inc. *		3,594		26,236
Hanover Insurance Group, Inc.		9,956		407,101
HCC Insurance Holdings, Inc.		2,700		71,388
Independence Holding Company		860		5,212
IPC Holdings, Ltd.		1,900		61,598
Max Capital Group, Ltd.		700		14,322
MBIA, Inc. *		31,726		213,199
Meadowbrook Insurance Group, Inc.		3,998		31,864
Mercer Insurance Group, Inc.		100		1,833
MGIC Investment Corp. *		600		4,878
Old Republic International Corp.		24,854		296,011
OneBeacon Insurance Group, Ltd.		3,729		51,199
PMI Group, Inc.		200		668
Protective Life Corp.		10,742		231,490
Radian Group, Inc.		2,100		19,257
Reinsurance Group of America, Inc.		2,049		88,209
Safety Insurance Group, Inc.		1,203		38,652
SeaBright Insurance Holdings, Inc. *		499		4,995
Stancorp Financial Group, Inc.		400		15,140
Stewart Information Services Corp.		3,400		48,178
Tower Group, Inc.		6,396		153,440
Transatlantic Holdings, Inc.		6,044		295,310
United America Indemnity, Ltd. *		2,207		13,750
Unitrin, Inc.		7,270		137,621
Universal American Financial Corp. *		13,027		119,588
Universal Insurance Holdings, Inc.		1,687		8,469
Validus Holdings, Ltd. (a)		1,800		46,188
White Mountains Insurance Group, Ltd.		770		240,240
Zenith National Insurance Corp.		3,048		82,174
				5,233,701
International Oil - 0.08%
ATP Oil & Gas Corp. *		6,100		68,015
Parker Drilling Company *		3,030		13,665
				81,680
Internet Content - 0.07%
Alloy, Inc. *		2,272		15,154
HealthStream, Inc. *		300		1,173
InfoSpace, Inc. *		3,972		32,173
TechTarget, Inc. *		1,700		10,914
TheStreet.com, Inc.		2,659		6,781
				66,195
Internet Incubators - 0.03%
ModusLink Global Solutions, Inc. *		4,424		31,764

The accompanying notes are an integral part of the financial statements.

269

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Internet Retail - 0.67%
1-800-Flowers.com, Inc., Class A *		2,314	$	7,150
IAC/InterActiveCorp *		11,000		203,720
Internet Brands, Inc., Class A *		7,300		53,217
Intersections, Inc. *		2,600		11,102
Liberty Media Corp. - Interactive A *		38,802		371,723
Shutterfly, Inc. *		465		6,724
				653,636
Internet Service Provider - 0.12%
ePlus, Inc. *		620		9,796
Online Resources Corp. *		4,100		22,427
United Online, Inc.		8,663		60,641
Web.com Group, Inc. *		4,251		23,210
				116,074
Internet Software - 1.13%
Cybersource Corp. *		38,072		584,405
DealerTrack Holdings, Inc. *		3,284		66,271
eResearch Technology, Inc. *		37,282		234,504
RealNetworks, Inc. *		15,401		54,520
Support.com, Inc. *		5,400		12,690
TIBCO Software, Inc. *		17,624		156,325
				1,108,715
Investment Companies - 0.00%
Teton Advisors, Inc. * (l)		201		0
Leisure Time - 2.19%
Arctic Cat, Inc.		2,137		15,258
Bally Technologies, Inc. *		13,794		557,691
Bluegreen Corp. *		2,800		8,120
Brunswick Corp.		16,101		149,578
Callaway Golf Company		11,975		84,663
Canterbury Park Holding Corp. *		100		653
Cinemark Holdings, Inc.		9,951		99,908
Dover Downs Gaming & Entertainment, Inc.		226		1,352
Gaylord Entertainment Company *		6,900		140,208
Great Wolf Resorts, Inc. *		4,300		15,093
Isle of Capri Casinos, Inc. *		2,600		26,598
Lakes Gaming, Inc. *		2,700		8,532
Life Time Fitness, Inc. *		6,300		196,056
MTR Gaming Group, Inc. *		3,400		11,424
Multimedia Games, Inc. *		5,994		30,090
Pinnacle Entertainment, Inc. *		4,129		38,730
RC2 Corp. *		1,743		27,365
Rick's Cabaret International, Inc. *		1,792		13,566
Royal Caribbean Cruises, Ltd. (a)		24,418		465,896
Speedway Motorsports, Inc.		7,077		110,047
Steinway Musical Instruments, Inc. *		1,091		12,525
The Nautilus Group, Inc. *		2,700		4,644
Vail Resorts, Inc. *		2,949		97,671
West Marine, Inc. *		4,194		34,684
				2,150,352
Life Sciences - 0.06%
Celera Corp. *		4,364		28,541
Dawson Geophysical Company *		1,100		27,269
				55,810
Liquor-0.19%
Central European Distribution Corp. *		5,941		191,300
Manufacturing - 0.81%
American Railcar Industries, Inc.		1,634		16,324
AptarGroup, Inc.		13,164		452,578
Barnes Group, Inc.		3,881		57,012
Ceradyne, Inc. *		1,800		33,696
Chase Corp.		1,432		16,325
Coherent, Inc. *		1,300		29,068
GenTek, Inc. *		420		11,521
Insteel Industries, Inc.		1,427		16,296
MFRI, Inc. *		100		643
Park-Ohio Holdings Corp. *		1,442		10,628
Portec Rail Products, Inc.		854		7,934
Smith & Wesson Holding Corp. * (a)		2,493		13,412
Spartan Motors, Inc.		2,366		12,847
Synalloy Corp.		80		800
Trinity Industries, Inc.		7,400		116,920
				796,004
Medical Products - 0.01%
BioClinica, Inc. *		1,600		5,488
Medical-Hospitals - 0.88%
Anika Therapeutics, Inc *		800		4,800
Community Health Systems, Inc. * (a)		3,100		95,387
Dynacq Healthcare, Inc. *		941		3,171
EV3, Inc. *		8,041		102,442
LifePoint Hospitals, Inc. *		2,042		51,316
MedCath Corp. *		2,300		20,976
Sunrise Senior Living, Inc. *		3,400		7,514
Universal Health Services, Inc., Class B		9,647		566,858
Vital Images, Inc. *		1,000		12,710
				865,174
Metal & Metal Products - 1.76%
A. M. Castle & Company		1,886		20,765
Ampco-Pittsburgh Corp.		836		19,964
Brush Engineered Materials, Inc. *		1,500		33,270
Gibraltar Industries, Inc.		1,901		22,888
Haynes International, Inc. *		2,000		54,220
Horsehead Holding Corp. *		2,908		32,570
Kaiser Aluminum Corp.		3,700		119,621
Ladish Company, Inc. *		2,200		32,208
Mueller Industries, Inc.		2,231		53,968
Mueller Water Products, Inc.		20,625		94,875
NN, Inc. *		585		1,977
North American Galvanizing & Coatings, Inc. *		3,100		17,577
RBC Bearings, Inc. *		17,302		380,644
Reliance Steel & Aluminum Company		10,200		376,788
RTI International Metals, Inc. *		3,900		74,958
Timken Company		13,200		278,652
Universal Stainless & Alloy Products, Inc. *		1,187		21,259
USEC, Inc. *		21,628		98,407
				1,734,611
Mining - 0.64%
Compass Minerals International, Inc.		8,140		432,885
Hecla Mining Company * (a)		24,800		73,904

The accompanying notes are an integral part of the financial statements.

270

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Mining (continued)
Stillwater Mining Company *		17,982	$	115,265
U.S. Gold Corp. *		1,100		3,069
				625,123
Mobile Homes - 0.00%
Winnebago Industries, Inc.		400		4,840
Multimedia - 0.01%
Ascent Media Corp., Class A *		300		7,710
EW Scripps Co. *		100		696
				8,406
Office Furnishings & Supplies - 0.29%
Acco Brands Corp. *		5,097		28,543
Office Depot, Inc. *		5,100		26,622
OfficeMax, Inc.		2,433		27,517
Steelcase, Inc. Class A		15,596		97,475
United Stationers, Inc. *		2,307		105,407
Virco Manufacturing		700		2,156
				287,720
Oil & Gas Drilling - 0.00%
TGC Industries, Inc. *		260		1,004
Paper - 0.96%
Boise, Inc. *		8,800		38,368
Buckeye Technologies, Inc. *		2,400		24,192
KapStone Paper and Packaging Corp. *		1,311		9,007
MeadWestvaco Corp.		24,200		531,190
Neenah Paper, Inc.		1,386		15,731
Temple-Inland, Inc.		18,000		304,380
Wausau-Mosinee Paper Corp.		2,400		23,184
				946,052
Petroleum Services - 2.61%
Approach Resources, Inc. *		2,400		18,000
Bolt Technology Corp. *		959		11,326
Bronco Drilling Company, Inc. *		4,401		16,284
Complete Production Services, Inc. *		74,592		671,328
CVR Energy, Inc. *		15,600		151,008
Delek US Holdings, Inc.		4,500		36,405
Exterran Holdings, Inc. * (a)		6,019		108,523
Flotek Industries, Inc. * (a)		1,994		3,250
GulfMark Offshore, Inc. *		3,620		107,948
Helmerich & Payne, Inc.		200		6,692
Hercules Offshore, Inc. *		100		460
Hornbeck Offshore Services, Inc. *		600		13,236
Key Energy Services, Inc. *		18,999		135,843
Newpark Resources, Inc. *		13,256		35,393
Oceaneering International, Inc. *		11,915		621,606
Petroleum Development Corp. *		2,500		34,225
Pioneer Drilling Company *		800		4,560
Rex Energy Corp. *		600		3,576
SEACOR Holdings, Inc. *		3,000		228,390
Superior Well Services, Inc. *		100		903
T-3 Energy Services, Inc. *		894		15,716
Tesoro Corp.		21,000		295,680
TETRA Technologies, Inc. *		4,949		43,650
				2,564,002
Pharmaceuticals - 0.60%
Biodel, Inc. *		1,308		6,658
BioScrip, Inc. *		1,100		6,468
BMP Sunstone Corp. *		1,200		4,800
Hi-Tech Pharmacal Company, Inc. *		1,376		20,791
King Pharmaceuticals, Inc. *		3,200		33,216
K-V Pharmaceutical Company, Class A *		2,141		4,903
Lannett Company, Inc. *		350		3,013
Medicis Pharmaceutical Corp., Class A		2,000		36,940
Par Pharmaceutical Companies, Inc. *		2,620		53,579
Prestige Brands Holdings, Inc. *		5,597		41,474
ViroPharma, Inc. *		47,343		378,744
				590,586
Photography - 0.22%
Eastman Kodak Company		40,700		216,524
Pollution Control - 0.01%
CECO Environmental Corp. *		2,241		7,530
Publishing - 0.62%
Consolidated Graphics, Inc. *		900		18,594
Courier Corp.		449		7,229
Dolan Media Company *		3,854		40,852
Gannett Company, Inc.		32,127		277,577
McClatchy Company, Class A		900		1,791
Meredith Corp.		3,972		109,945
Playboy Enterprises, Inc., Class B *		1,123		3,100
The New York Times Company, Class A (a)		19,448		147,999
				607,087
Railroads & Equipment - 0.04%
Greenbrier Company, Inc.		1,647		21,197
P.A.M. Transportation Services, Inc. *		1,563		13,489
				34,686
Real Estate - 1.57%
Alexandria Real Estate Equities, Inc., REIT (a)		5,638		314,093
Avatar Holdings, Inc. *		1,050		20,044
Forest City Enterprises, Inc., Class A		6,938		64,177
Hilltop Holdings, Inc. *		7,179		88,158
Jones Lang LaSalle, Inc.		2,949		138,249
LaSalle Hotel Properties, REIT		13,620		225,411
Senior Housing Properties Trust, REIT		15,531		311,552
Universal Health Realty Income Trust, REIT		11,320		380,239
ZipRealty, Inc. *		1,500		5,850
				1,547,773
Retail - 4.42%
Allion Healthcare, Inc. *		3,871		27,291
AnnTaylor Stores Corp. *		5,700		80,256
Barnes & Noble, Inc. (a)		9,129		188,879
Benihana, Inc. *		700		5,460
Books-A-Million, Inc.		3,177		43,144
Build A Bear Workshop, Inc. *		1,500		7,005
Cabela's, Inc. * (a)		12,958		207,976
Cash America International, Inc.		4,200		117,726
Chico's FAS, Inc. *		29,800		379,354
Christopher & Banks Corp.		2,927		20,079
Citi Trends, Inc. *		16,450		366,670
Coldwater Creek, Inc. *		4,794		35,667

The accompanying notes are an integral part of the financial statements.

271

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail (continued)
Collective Brands, Inc. *		4,400	$	69,696
Conn's, Inc. * (a)		2,438		27,574
Destination Maternity Corp. *		500		10,040
Dillard's, Inc., Class A		11,994		136,852
DSW, Inc., Class A *		1,200		18,192
Finish Line, Inc.		7,198		59,383
Foot Locker, Inc.		16,400		174,824
Fred's, Inc., Class A		4,402		57,578
Gander Mountain Company *		1,359		7,638
Genesco, Inc. *		1,504		32,938
J. Crew Group, Inc. * (a)		18,054		615,461
Jo-Ann Stores, Inc. *		2,944		80,430
Kenneth Cole Productions, Inc., Class A		1,100		11,055
Lazare Kaplan International, Inc. *		200		552
Marinemax, Inc. *		3,738		26,353
Pantry, Inc. *		25,849		391,612
PC Connection, Inc. *		400		2,220
Regis Corp. (a)		7,767		125,670
Retail Ventures, Inc. *		6,784		32,835
Saks, Inc. * (a)		20,886		127,405
Shoe Carnival, Inc. *		2,044		32,132
Sport Supply Group, Inc.		1,526		15,687
Stein Mart, Inc. *		3,100		38,316
Susser Holdings Corp. *		215		2,307
Systemax, Inc. *		2,345		31,188
Talbots, Inc.		2,794		16,652
The Dress Barn, Inc. *		8,493		137,841
The Men's Wearhouse, Inc.		7,600		197,600
Titan Machinery, Inc. *		1,456		17,545
Tween Brands, Inc. *		3,180		24,168
Williams-Sonoma, Inc. (a)		17,900		342,427
				4,343,678
Retail Grocery - 0.28%
Ingles Markets, Inc.		1,470		24,240
The Great Atlantic & Pacific Tea Company, Inc. *		9,537		63,993
Weis Markets, Inc.		1,721		53,713
Winn-Dixie Stores, Inc. *		9,951		137,025
				278,971
Retail Trade - 0.11%
A.C. Moore Arts & Crafts, Inc. *		477		1,660
Bon-Ton Stores, Inc.		200		1,372
Borders Group, Inc. *		100		317
Charming Shoppes, Inc. *		5,300		27,772
New York & Company, Inc. *		3,600		16,668
Pacific Sunwear of California, Inc. *		6,500		28,730
Pier 1 Imports, Inc. *		7,500		18,975
Tuesday Morning Corp. *		2,500		11,250
				106,744
Sanitary Services - 0.44%
Waste Connections, Inc. *		14,487		396,219
Waste Services, Inc. *		8,700		38,193
				434,412
Semiconductors - 5.32%
Advanced Analogic Technologies, Inc. *		1,517		6,842
Advanced Energy Industries, Inc. *		4,427		46,306
Amtech Systems, Inc. *		480		2,362
ATMI, Inc. *		26,280		446,497
BTU International, Inc. *		482		2,892
Cascade Microtech, Inc. *		1,513		7,399
Ceva, Inc. *		1,788		15,573
Cymer, Inc. *		18,239		641,648
Cypress Semiconductor Corp. *		13,656		138,199
Diodes, Inc. *		7,000		141,890
DSP Group, Inc. *		2,810		22,199
Emulex Corp. *		13,777		133,499
Fairchild Semiconductor International, Inc. *		14,780		148,687
FormFactor, Inc. *		3,614		79,291
GSI Technology, Inc. *		3,600		13,500
Integrated Device Technology, Inc. *		24,164		165,040
International Rectifier Corp. *		10,774		202,228
IXYS Corp. *		893		6,072
Kopin Corp. *		520		2,002
MKS Instruments, Inc. *		27,858		513,423
Nanometrics, Inc. *		1,200		7,704
OmniVision Technologies, Inc. *		7,300		106,799
ON Semiconductor Corp. *		68,822		555,394
Pericom Semiconductor Corp. *		301		2,592
Photronics, Inc. *		4,700		21,432
Power Integrations, Inc.		6,022		197,221
Richardson Electronics, Ltd.		2,762		11,186
Rovi Corp. *		10,045		305,770
Rudolph Technologies, Inc. *		1,000		6,420
Semitool, Inc. *		754		4,954
Semtech Corp. *		44,868		819,738
Silicon Image, Inc. *		13,962		42,444
Skyworks Solutions, Inc. *		18,103		210,900
Triquint Semiconductor, Inc. *		15,643		114,507
Ultra Clean Holdings, Inc. *		400		1,392
Veeco Instruments, Inc. *		3,778		81,151
				5,225,153
Software - 3.01%
American Software, Inc., Class A		717		4,517
Avid Technology, Inc. *		4,324		56,342
Blackbaud, Inc.		27,865		536,680
Bsquare Corp. *		100		222
Concurrent Computer Corp. *		482		2,155
DivX, Inc. *		4,700		24,534
Emdeon, Inc., Class A *		31,787		554,365
FARO Technologies, Inc. *		1,507		25,634
JDA Software Group, Inc. *		3,074		59,451
MSC Software Corp. *		2,149		16,289
Omnicell, Inc. *		40,575		445,513
Omniture, Inc. *		2,471		35,360
Open Text Corp. *		17,329		609,461
Quest Software, Inc. *		30,670		505,748
Smith Micro Software, Inc. *		1,870		21,599
THQ, Inc. *		11,400		62,814
				2,960,684

The accompanying notes are an integral part of the financial statements.

272

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Opportunities Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Steel - 0.90%
AK Steel Holding Corp.		12,900	$	262,128
Carpenter Technology Corp.		2,611		55,640
Friedman Industries		490		2,852
Northwest Pipe Company *		13,631		452,958
Olympic Steel, Inc.		2,200		59,246
Worthington Industries, Inc.		3,800		50,046
				882,870
Telecommunications Equipment &
Services - 3.10%
Alaska Communications Systems Group, Inc.		54,562		434,859
Arris Group, Inc. *		70,490		934,697
Aware, Inc. *		3,300		8,778
Ciena Corp. * (a)		13,685		183,379
CommScope, Inc. *		7,100		191,416
Communications Systems, Inc.		1,488		17,558
Comtech Telecommunications Corp. *		13,254		450,901
CPI International, Inc. *		2,407		22,578
EchoStar Corp., Class A *		1,200		22,260
General Communication, Inc., Class A *		4,937		32,930
Globecomm Systems, Inc. *		1,454		11,007
Harris Stratex Networks, Inc., Class A *		1,800		10,908
Hughes Communications, Inc. *		1,096		28,507
ID Systems, Inc. *		651		2,226
JDS Uniphase Corp. *		30,100		206,787
KVH Industries, Inc. *		2,148		16,239
Loral Space & Communications, Inc. *		3,982		82,189
NTELOS Holdings Corp.		12,424		201,393
Occam Networks, Inc. *		3,450		12,248
Oplink Communications, Inc. *		1,660		23,041
Orbcomm, Inc. *		3,600		7,740
Performance Technologies, Inc. *		1,302		4,010
Plantronics, Inc.		5,418		129,436
Tollgrade Communications, Inc. *		1,621		9,061
				3,044,148
Telephone - 0.56%
Cincinnati Bell, Inc. *		164,376		547,372
Tires & Rubber - 0.15%
Cooper Tire & Rubber Company		3,400		48,552
Goodyear Tire & Rubber Company *		2,800		46,172
Myers Industries, Inc.		4,925		50,481
				145,205
Tobacco - 0.24%
Alliance One International, Inc. *		7,536		28,863
Schweitzer Mauduit International, Inc.		1,455		71,557
Universal Corp.		3,700		136,456
				236,876
Toys, Amusements & Sporting Goods - 0.01%
Russ Berrie & Company, Inc. *		1,967		11,291
Transportation - 1.59%
Aircastle, Ltd.		10,000		94,000
Alexander & Baldwin, Inc.		4,808		137,990
Atlas Air Worldwide Holdings, Inc. *		2,177		54,294
Bristow Group, Inc. *		5,542		161,827
DryShips, Inc. (a)		55,912		326,526
Dynamex, Inc. *		974		15,983
Eagle Bulk Shipping, Inc. * (a)		7,900		39,737
Genco Shipping & Trading, Ltd.		5,300		102,661
Horizon Lines, Inc.		3,817		20,688
Marten Transport, Ltd. *		21,653		367,235
Overseas Shipholding Group, Inc.		4,418		156,265
Pacer International, Inc.		3,866		16,005
PHI, Inc. *		2,100		43,806
USA Truck, Inc. *		1,601		21,325
				1,558,342
Trucking & Freight - 1.92%
Celadon Group, Inc. *		1,601		15,674
Landstar Systems, Inc.		13,176		459,447
Old Dominion Freight Lines, Inc. *		16,840		602,535
Oshkosh Corp.		14,200		477,120
Ryder Systems, Inc.		8,700		330,600
				1,885,376
Utility Service - 0.05%
Cal Dive International, Inc. *		5,136		53,568
Water Treatment Systems - 0.16%
Cascal N.V.		26,532		158,131
TOTAL COMMON STOCKS (Cost $85,062,671)			$	97,956,716
SHORT TERM INVESTMENTS - 10.14%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		995,315	$	9,964,400
TOTAL SHORT TERM INVESTMENTS (Cost $9,961,232)			$	9,964,400
REPURCHASE AGREEMENTS - 1.40%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $1,371,002 on 09/01/2009, collateralized by $1,155,000 Federal National Mortgage Association, 5.13% due 12/18/2017 (valued at $1,180,988, including interest) and $220,000 Federal National Mortgage Association, 4.72% due 01/22/2018 (valued at $221,375, including interest)	$	1,371,000	$	1,371,000
TOTAL REPURCHASE AGREEMENTS (Cost $1,371,000)			$	1,371,000
Total Investments (Small Cap Opportunities Fund) (Cost $96,394,903) - 111.20%			$	109,292,116
Other assets and liabilities, net - (11.20)%				(11,005,146	)
TOTAL NET ASSETS - 100.00%			$	98,286,970

The accompanying notes are an integral part of the financial statements.

273

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Value Fund
	Shares or Principal Amount		Value
COMMON STOCKS - 97.29%
Apparel & Textiles - 3.60%
Stage Stores, Inc.	141,200	$	1,885,020
Unifirst Corp.	24,400		973,316
			2,858,336
Auto Services - 0.25%
Copart, Inc. *	5,600		197,904
Banking - 6.20%
First Midwest Bancorp, Inc.	74,900		768,474
International Bancshares Corp.	70,600		1,090,064
MB Financial, Inc.	51,600		714,660
NewAlliance Bancshares, Inc.	34,400		404,544
Webster Financial Corp.	93,100		1,216,817
WestAmerica Bancorp	14,100		725,163
			4,919,722
Biotechnology - 1.79%
Charles River Laboratories International, Inc. *	41,200		1,420,988
Building Materials & Construction - 0.61%
Sterling Construction Company, Inc. *	30,200		486,220
Business Services - 4.41%
Arbitron, Inc.	68,300		1,251,256
Bowne & Company, Inc.	91,917		643,419
MAXIMUS, Inc.	38,500		1,603,525
			3,498,200
Chemicals - 2.08%
Zep, Inc.	103,600		1,655,528
Computers & Business Equipment - 3.78%
Diebold, Inc.	50,000		1,508,500
Electronics for Imaging, Inc. *	77,900		828,856
MTS Systems Corp.	2,800		74,312
Xyratex, Ltd. *	90,200		593,516
			3,005,184
Construction Materials - 0.43%
Simpson Manufacturing Company, Inc.	13,300		341,810
Cosmetics & Toiletries - 1.99%
Helen of Troy, Ltd. *	73,100		1,580,422
Crude Petroleum & Natural Gas - 3.63%
Penn Virginia Corp.	52,100		998,236
St. Mary Land & Exploration Company	28,000		736,400
Whiting Petroleum Corp. *	23,600		1,145,544
			2,880,180
Electrical Utilities - 2.93%
Unisource Energy Corp.	43,700		1,277,788
Westar Energy, Inc.	51,200		1,050,624
			2,328,412
Electronics - 4.26%
Belden, Inc.	96,700		2,023,931
Nam Tai Electronics, Inc.	77,900		419,102
Zebra Technologies Corp., Class A *	37,600		939,624
			3,382,657
Energy - 0.66%
New Jersey Resources Corp.	14,200		521,850
Financial Services - 7.05%
Ares Capital Corp.	126,000		1,171,800
Credit Acceptance Corp. *	18,000		549,180
Delphi Financial Group, Inc.	81,700		1,909,329
Financial Federal Corp.	23,600		552,712
GATX Corp.	51,700		1,418,131
			5,601,152
Food & Beverages - 1.73%
Lance, Inc.	56,600		1,372,550
Forest Products - 1.56%
Deltic Timber Corp.	24,200		1,236,136
Gas & Pipeline Utilities - 2.14%
Atmos Energy Corp.	32,200		877,128
WGL Holdings, Inc.	25,000		825,000
			1,702,128
Healthcare Products - 3.06%
Herbalife, Ltd.	51,900		1,571,532
ICU Medical, Inc. *	23,000		855,370
			2,426,902
Healthcare Services - 3.29%
AmSurg Corp. *	45,100		915,530
Centene Corp. *	47,700		825,687
CorVel Corp. *	28,900		868,734
			2,609,951
Hotels & Restaurants - 3.40%
CEC Entertainment, Inc. *	25,000		668,750
Choice Hotels International, Inc.	36,600		1,079,700
Sonic Corp. *	83,100		949,833
			2,698,283
Household Products - 0.79%
Tempur-Pedic International, Inc. *	42,500		629,000
Industrial Machinery - 1.40%
Albany International Corp., Class A	64,500		1,108,755
Insurance - 7.53%
Alleghany Corp. *	2,550		707,880
Assured Guaranty, Ltd.	64,200		1,277,580
IPC Holdings, Ltd.	27,000		875,340
Platinum Underwriters Holdings, Ltd.	39,200		1,421,000
Reinsurance Group of America, Inc.	18,200		783,510
Universal American Financial Corp. *	99,300		911,574
			5,976,884
Leisure Time - 0.49%
Bally Technologies, Inc. *	9,700		392,171
Manufacturing - 6.72%
Acuity Brands, Inc.	26,000		834,860
AptarGroup, Inc.	31,200		1,072,656
Carlisle Companies, Inc.	89,600		2,955,906
ESCO Technologies, Inc. *	12,700		470,662
			5,334,084
Metal & Metal Products - 2.94%
Matthews International Corp., Class A	27,000		940,680

The accompanying notes are an integral part of the financial statements.

274

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Cap Value Fund (continued)
	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Metal & Metal Products (continued)
Mueller Industries, Inc.		57,600	$	1,393,344
				2,334,024
Office Furnishings & Supplies - 3.32%
Acco Brands Corp. *		149,800		838,880
United Stationers, Inc. *		39,300		1,795,617
				2,634,497
Petroleum Services - 0.93%
SEACOR Holdings, Inc. *		9,700		738,461
Railroads & Equipment - 1.68%
Genesee & Wyoming, Inc., Class A *		42,500		1,333,650
Real Estate - 5.91%
Acadia Realty Trust, REIT		50,000		765,500
American Campus Communities, Inc., REIT		31,900		829,719
DiamondRock Hospitality Company, REIT		81,200		556,220
Mack-Cali Realty Corp., REIT		20,500		656,615
PS Business Parks, Inc., REIT		9,400		497,542
Realty Income Corp., REIT		54,200		1,384,810
				4,690,406
Retail Trade - 3.97%
Casey's General Stores, Inc.		29,400		815,850
Cato Corp., Class A		95,400		1,629,432
Hibbett Sports, Inc. *		40,400		709,828
				3,155,110
Software - 1.31%
Websense, Inc. *		68,400		1,036,944
Transportation - 1.29%
Kirby Corp. *		27,600		1,022,580
Trucking & Freight - 0.16%
Vitran Corp., Inc. *		11,300		131,871
TOTAL COMMON STOCKS (Cost $65,981,535)			$	77,242,952
REPURCHASE AGREEMENTS - 2.78%
Bank of New York Tri-Party Repurchase Agreement dated 08/31/2009 at 0.21% to be repurchased at $1,900,011 on 09/01/2009, $2,330,048 Federal National Mortgage Association, 6.00% due 12/01/2036 (valued at $1,938,001, including interest)	$	1,900,000	$	1,900,000
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $307,001 on 09/01/2009, collateralized by $315,000 Federal Home Loan Mortgage Corp., 3.75% due 03/27/2019 (valued at $316,181, including interest)		307,000		307,000
TOTAL REPURCHASE AGREEMENTS (Cost $2,207,000)			$	2,207,000
Total Investments (Small Cap Value Fund) (Cost $68,188,535) - 100.07%			$	79,449,952
Other assets and liabilities, net - (0.07)%				(58,973	)
TOTAL NET ASSETS - 100.00%			$	79,390,979
Small Company Growth Fund
COMMON STOCKS - 97.55%
Advertising - 0.64%
inVentiv Health, Inc. *		48,800		775,920
Aerospace - 1.45%
TransDigm Group, Inc. *		39,733		1,768,913
Apparel & Textiles - 1.15%
Interface, Inc., Class A		19,921		131,678
Warnaco Group, Inc. *		33,435		1,272,202
				1,403,880
Auto Parts - 0.84%
TRW Automotive Holdings Corp. *		57,715		1,018,670
Automobiles - 0.69%
Group 1 Automotive, Inc.		29,747		837,973
Banking - 3.23%
City National Corp. (a)		17,992		710,684
Cullen Frost Bankers, Inc.		14,819		730,280
Greenhill & Company, Inc. (a)		15,734		1,246,133
SVB Financial Group * (a)		31,439		1,249,700
				3,936,797
Biotechnology - 3.35%
Acorda Therapeutics, Inc. *		35,879		811,583
AMAG Pharmaceuticals, Inc. * (a)		20,168		827,695
Martek Biosciences Corp. * (a)		34,591		849,209
Myriad Genetics, Inc. *		23,815		728,024
Techne Corp.		14,176		874,234
				4,090,745
Business Services - 6.55%
CoStar Group, Inc. * (a)		36,696		1,392,613
Global Payments, Inc.		22,849		969,712
Informatica Corp. *		75,195		1,348,246
Parexel International Corp. *		34,118		437,734
SRA International, Inc., Class A *		47,497		943,765
Syntel, Inc. (a)		35,207		1,410,745
Tetra Tech, Inc. *		50,385		1,488,373
				7,991,188
Chemicals - 0.58%
Calgon Carbon Corp. *		49,285		704,776
Commercial Services - 1.01%
Chemed Corp.		28,346		1,234,185
Computers & Business Equipment - 3.02%
Cogent, Inc. *		100,733		1,057,696
MICROS Systems, Inc. *		39,564		1,102,649
Tech Data Corp. *		39,926		1,521,181
				3,681,526
Construction & Mining Equipment - 0.60%
Bucyrus International, Inc., Class A		24,678		736,638
Containers & Glass - 1.00%
Greif, Inc., Class A		24,613		1,219,328
Correctional Facilities - 1.09%
Corrections Corp. of America *		66,713		1,323,586
Crude Petroleum & Natural Gas - 4.25%
Arena Resources, Inc. *		31,415		960,671

The accompanying notes are an integral part of the financial statements.

275

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas (continued)
Bill Barrett Corp. *		29,862	$	873,165
Carrizo Oil & Gas, Inc. * (a)		44,169		853,787
Goodrich Petroleum Corp. * (a)		36,905		883,506
Patterson-UTI Energy, Inc.		66,128		878,841
Whiting Petroleum Corp. *		15,023		729,216
				5,179,186
Drugs & Health Care - 0.91%
Meridian Bioscience, Inc. (a)		45,912		1,106,479
Electrical Equipment - 4.18%
General Cable Corp. *		33,630		1,186,466
Regal-Beloit Corp. (a)		27,738		1,260,970
Varian, Inc. *		34,251		1,754,336
Watsco, Inc.		17,031		899,748
				5,101,520
Electrical Utilities - 2.26%
ITC Holdings Corp.		25,257		1,176,471
Pike Electric Corp. *		87,272		969,592
Quanta Services, Inc. *		27,651		611,640
				2,757,703
Financial Services - 3.46%
Affiliated Managers Group, Inc. * (a)		15,728		1,027,510
Federated Investors, Inc., Class B		39,567		1,038,634
optionsXpress Holdings, Inc.		44,205		735,571
Stifel Financial Corp. *		25,119		1,414,200
				4,215,915
Food & Beverages - 0.70%
Ralcorp Holdings, Inc. *		13,663		857,080
Healthcare Products - 2.86%
American Medical Systems Holdings, Inc. *		4,107		62,591
Gen-Probe, Inc. *		19,955		769,265
Insulet Corp. * (a)		50,261		462,904
Nuvasive, Inc. * (a)		19,691		789,019
PSS World Medical, Inc. *		37,169		759,734
Zoll Medical Corp. *		35,587		639,854
				3,483,367
Healthcare Services - 1.01%
MEDNAX, Inc. *		23,556		1,226,561
Hotels & Restaurants - 4.86%
Brinker International, Inc.		61,022		888,480
Buffalo Wild Wings, Inc. * (a)		19,978		823,693
Choice Hotels International, Inc. (a)		31,437		927,392
Darden Restaurants, Inc.		25,943		854,303
Jack in the Box, Inc. *		55,049		1,122,449
P.F. Chang’s China Bistro, Inc. * (a)		40,975		1,307,512
				5,923,829
Household Products - 1.03%
Church & Dwight, Inc.		22,052		1,259,831
Industrial Machinery - 1.51%
FMC Technologies, Inc. *		23,811		1,135,784
Lindsay Corp. (a)		16,874		700,440
				1,836,224
Industrials - 0.44%
EnergySolutions, Inc.		60,830		540,170
Insurance - 1.54%
Brown & Brown, Inc.		35,618		707,730
ProAssurance Corp. *		22,204		1,165,710
				1,873,440
Internet Retail - 0.75%
Netflix, Inc. * (a)		21,029		918,126
Internet Software - 0.75%
F5 Networks, Inc. * (a)		26,611		917,813
Leisure Time - 2.08%
National Cinemedia, Inc.		37,064		555,960
Penn National Gaming, Inc. *		27,879		814,346
WMS Industries, Inc. *		27,501		1,164,117
				2,534,423
Manufacturing - 0.98%
Coherent, Inc. *		25,331		566,401
Hexcel Corp. *		57,407		624,588
				1,190,989
Medical-Hospitals - 1.42%
LifePoint Hospitals, Inc. * (a)		26,979		677,983
VCA Antech, Inc. * (a)		42,759		1,058,285
				1,736,268
Metal & Metal Products - 0.13%
Dynamic Materials Corp.		9,533		154,339
Petroleum Services - 1.92%
Dril-Quip, Inc. *		33,499		1,429,067
SandRidge Energy, Inc. *		75,160		916,952
				2,346,019
Pharmaceuticals - 3.42%
BioMarin Pharmaceutical, Inc. * (a)		54,568		898,735
Isis Pharmaceuticals, Inc. *		32,583		525,890
Myriad Pharmaceuticals, Inc. *		6,455		29,047
OSI Pharmaceuticals, Inc. *		18,639		622,915
Perrigo Company		30,021		886,220
United Therapeutics Corp. *		13,231		1,210,769
				4,173,576
Pollution Control - 0.49%
Fuel Tech, Inc. *		58,556		598,442
Publishing - 0.17%
VistaPrint, Ltd. *		5,134		212,753
Railroads & Equipment - 0.91%
Wabtec Corp.		29,674		1,111,291
Real Estate - 0.65%
BioMed Realty Trust, Inc., REIT		58,476		788,257
Retail Trade - 2.18%
Big Lots, Inc. *		40,004		1,016,902
Hot Topic, Inc. *		120,257		836,989
Tractor Supply Company *		17,176		808,302
				2,662,193

The accompanying notes are an integral part of the financial statements.

276

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Semiconductors - 8.61%
Advanced Energy Industries, Inc. *		80,485	$	841,873
Cabot Microelectronics Corp. *		30,761		1,062,793
Cymer, Inc. *		12,999		457,305
Hittite Microwave Corp. *		31,582		1,087,052
Microsemi Corp. *		69,036		974,098
Monolithic Power Systems, Inc. *		49,349		1,111,833
ON Semiconductor Corp. *		130,583		1,053,805
Power Integrations, Inc.		32,246		1,056,057
Silicon Laboratories, Inc. *		31,155		1,403,221
Varian Semiconductor Equipment Associates, Inc. * (a)		47,571		1,454,245
				10,502,282
Software - 8.16%
Aspen Technology, Inc. *		100,622		1,006,220
Blackboard, Inc. *		25,557		879,416
Eclipsys Corp. *		63,139		1,058,210
Lawson Software, Inc. *		154,398		951,092
Manhattan Associates, Inc. *		47,372		844,643
Omniture, Inc. *		70,869		1,014,135
Pegasystems, Inc.		299		9,158
Quality Systems, Inc. (a)		30,330		1,632,967
Quest Software, Inc. *		55,229		910,726
Sybase, Inc. *		23,668		824,830
Websense, Inc. *		53,718		814,365
				9,945,762
Steel - 0.45%
Carpenter Technology Corp.		25,675		547,134
Telecommunications Equipment &
Services - 5.74%
Harmonic, Inc. *		129,634		855,584
NeuStar, Inc., Class A *		48,208		1,117,462
NICE Systems, Ltd., ADR *		42,749		1,197,827
Polycom, Inc. *		56,664		1,336,704
SBA Communications Corp. * (a)		44,311		1,068,338
Starent Networks Corp. * (a)		70,335		1,423,580
				6,999,495
Toys, Amusements & Sporting Goods - 1.77%
Marvel Entertainment, Inc. *		44,522		2,153,529
Trucking & Freight - 2.76%
Forward Air Corp.		46,056		1,062,972
Hub Group, Inc., Class A *		43,803		960,600
Knight Transportation, Inc. (a)		81,579		1,345,238
				3,368,810
TOTAL COMMON STOCKS (Cost $111,529,696)			$	118,946,931
SHORT TERM INVESTMENTS - 19.05%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		2,319,645	$	23,222,667
TOTAL SHORT TERM INVESTMENTS (Cost $23,202,965)			$	23,222,667
REPURCHASE AGREEMENTS - 3.40%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $4,152,008 on 09/01/2009, collateralized by $4,120,000 Federal National Mortgage Association, 5.625% due 09/18/2017 (valued at $4,238,450, including interest)	$	4,152,000	$	4,152,000
TOTAL REPURCHASE AGREEMENTS (Cost $4,152,000)			$	4,152,000
Total Investments (Small Company Growth Fund) (Cost $138,884,661) - 120.00%			$	146,321,598
Other assets and liabilities, net - (20.00)%				(24,389,566	)
TOTAL NET ASSETS - 100.00%			$	121,932,032

Small Company Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 94.92%
Aerospace - 1.17%
Kratos Defense & Security Solutions, Inc. *		468,000	$	360,360
Woodward Governor Company		185,000		3,883,150
				4,243,510
Air Travel - 0.78%
Alaska Air Group, Inc. *		111,700		2,818,191
Apparel & Textiles - 0.78%
Culp, Inc. *		89,000		520,650
G & K Services, Inc., Class A		98,100		2,305,350
				2,826,000
Auto Parts - 0.01%
Accuride Corp. *		164,000		37,720
Auto Services - 0.43%
Dollar Thrifty Automotive Group, Inc. *		78,800		1,563,392
Banking - 4.46%
East West Bancorp, Inc.		182,938		1,684,859
Glacier Bancorp, Inc. (a)		164,300		2,449,713
Home Bancshares, Inc.		116,500		2,359,125
Signature Bank *		63,000		1,912,680
SVB Financial Group * (a)		122,600		4,873,350
Wintrust Financial Corp.		104,800		2,899,816
				16,179,543
Biotechnology - 0.66%
Exelixis, Inc. * (a)		204,500		1,163,605
Myriad Genetics, Inc. *		40,200		1,228,914
				2,392,519
Broadcasting - 0.19%
Saga Communications, Inc., Class A *		47,875		682,219
Building Materials & Construction - 2.65%
Beacon Roofing Supply, Inc. *		338,800		5,698,616
Drew Industries, Inc. *		149,400		3,074,652

The accompanying notes are an integral part of the financial statements.

277

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Company Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Building Materials & Construction (continued)
Sterling Construction Company, Inc. *		52,000	$	837,200
				9,610,468
Business Services - 5.90%
Compass Diversified Trust		162,600		1,647,138
Electro Rent Corp.		200,000		2,038,000
FTI Consulting, Inc. *		82,600		3,596,404
McGrath Rentcorp		182,100		3,581,907
MPS Group, Inc. *		367,500		3,623,550
Navigant Consulting Company *		207,300		2,609,907
StarTek, Inc. *		156,712		1,211,384
SYNNEX Corp. * (a)		104,600		3,101,390
				21,409,680
Chemicals - 3.21%
Airgas, Inc.		104,600		4,863,900
American Vanguard Corp. (a)		153,800		1,347,288
Arch Chemicals, Inc.		111,100		3,246,342
Innospec, Inc.		162,200		2,218,896
				11,676,426
Colleges & Universities - 0.63%
Corinthian Colleges, Inc. *		119,400		2,288,898
Commercial Services - 0.80%
Pool Corp. (a)		122,000		2,906,040
Computers & Business Equipment - 1.40%
Ixia *		263,709		1,611,262
Palm, Inc. * (a)		200,900		2,677,997
Xyratex, Ltd. *		118,700		781,046
				5,070,305
Construction & Mining Equipment - 1.43%
Astec Industries, Inc. *		54,200		1,372,886
Carbo Ceramics, Inc. (a)		49,900		2,148,195
Kaman Corp., Class A		80,800		1,674,984
				5,196,065
Construction Materials - 2.44%
Ameron International Corp.		49,500		4,008,015
Comfort Systems USA, Inc.		123,900		1,470,693
Universal Forest Products, Inc.		82,200		3,394,860
				8,873,568
Crude Petroleum & Natural Gas - 2.46%
Forest Oil Corp. * (a)		88,700		1,394,364
Penn Virginia Corp.		198,100		3,795,596
Whiting Petroleum Corp. *		77,500		3,761,850
				8,951,810
Domestic Oil - 0.48%
Mariner Energy, Inc. *		110,600		1,341,578
Union Drilling, Inc. *		61,619		385,735
				1,727,313
Drugs & Health Care - 1.70%
Landauer, Inc.		40,500		2,229,120
West Pharmaceutical Services, Inc.		98,100		3,942,639
				6,171,759
Electrical Equipment - 0.84%
C & D Technologies, Inc. * (a)		159,700		319,400
Littelfuse, Inc. *		84,700		2,120,888
Methode Electronics, Inc.		69,000		595,470
				3,035,758
Electrical Utilities - 2.72%
Black Hills Corp. (a)		101,300		2,591,254
Cleco Corp.		141,700		3,460,314
El Paso Electric Company *		141,500		2,397,010
Empire District Electric Company		79,200		1,437,480
				9,886,058
Electronics - 1.58%
Analogic Corp.		40,400		1,436,220
Belden, Inc.		118,000		2,469,740
Franklin Electric, Inc.		30,300		954,753
Newport Corp. *		124,600		883,414
				5,744,127
Financial Services - 3.82%
Ares Capital Corp.		352,200		3,275,460
Hercules Technology Growth Capital, Inc.		250,000		2,317,500
JMP Group, Inc.		112,900		1,157,225
Kohlberg Capital Corp.		206,867		984,687
Piper Jaffray Companies, Inc. *		44,900		2,275,532
Stifel Financial Corp. *		68,300		3,845,290
				13,855,694
Food & Beverages - 0.53%
Nash Finch Company		71,600		1,943,224
Forest Products - 0.98%
Deltic Timber Corp.		69,400		3,544,952
Furniture & Fixtures - 0.37%
Stanley Furniture Company, Inc.		109,600		1,328,352
Gas & Pipeline Utilities - 1.05%
Southwest Gas Corp.		94,300		2,296,205
Vectren Corp.		65,800		1,523,270
				3,819,475
Healthcare Products - 2.29%
AngioDynamics, Inc. *		82,400		1,067,080
Owens & Minor, Inc.		163,900		7,252,575
				8,319,655
Healthcare Services - 1.16%
National Healthcare Corp.		70,712		2,702,613
Triple-S Management Corp. * (a)		82,300		1,525,842
				4,228,455
Homebuilders - 1.25%
M/I Homes, Inc. * (a)		84,300		1,333,626
Meritage Homes Corp. *		143,700		3,220,317
				4,553,943
Hotels & Restaurants - 0.91%
Orient Express Hotels, Ltd., Class A *		283,000		2,818,680
The Steak & Shake Company * (a)		45,900		481,032
				3,299,712

The accompanying notes are an integral part of the financial statements.

278

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Company Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Industrial Machinery - 1.97%
Cascade Corp.		56,000	$	1,426,880
Circor International, Inc.		74,800		1,930,588
IDEX Corp.		143,825		3,802,733
				7,160,201
Insurance - 4.34%
Employers Holdings, Inc.		83,300		1,236,172
Markel Corp. *		7,300		2,400,678
Max Capital Group, Ltd.		149,700		3,062,862
National Interstate Corp.		120,600		2,158,740
ProAssurance Corp. *		131,500		6,903,750
				15,762,202
Life Sciences - 0.25%
Symyx Technologies, Inc. *		144,900		895,482
Manufacturing - 2.92%
AptarGroup, Inc.		151,100		5,194,818
Nordson Corp. (a)		101,300		5,427,654
				10,622,472
Metal & Metal Products - 3.80%
Franco-Nevada Corp.		78,800		2,027,674
Gibraltar Industries, Inc.		164,500		1,980,580
International Royalty Corp.		408,800		1,475,768
Matthews International Corp., Class A		133,800		4,661,592
Sims Group, Ltd., SADR		187,300		3,654,223
				13,799,837
Mining - 0.40%
AMCOL International Corp. (a)		66,000		1,461,240
Mobile Homes - 0.62%
Winnebago Industries, Inc.		187,600		2,269,960
Multimedia - 0.38%
Ascent Media Corp., Class A *		53,700		1,380,090
Oil & Gas Drilling - 0.44%
Atwood Oceanics, Inc. *		55,900		1,592,032
Paper - 2.06%
Clearwater Paper Corp. *		53,000		2,445,950
Potlatch Corp.		101,000		2,939,100
Wausau-Mosinee Paper Corp.		216,500		2,091,390
				7,476,440
Petroleum Services - 0.75%
Hercules Offshore, Inc. * (a)		113,392		521,603
TETRA Technologies, Inc. *		248,000		2,187,360
				2,708,963
Railroads & Equipment - 1.30%
Genesee & Wyoming, Inc., Class A *		150,500		4,722,690
Real Estate - 6.19%
Acadia Realty Trust, REIT		35,695		546,490
CBL & Associates Properties, Inc., REIT (a)		416,000		3,897,920
Cedar Shopping Centers, Inc., REIT		188,600		1,212,698
First Potomac Realty Trust, REIT		149,300		1,596,017
Hatteras Financial Corp., REIT		96,500		2,884,385
Kilroy Realty Corp., REIT		139,500		3,865,545
LaSalle Hotel Properties, REIT		163,200		2,700,960
Parkway Properties, Inc., REIT		66,600		1,205,460
Redwood Trust, Inc., REIT		134,400		2,154,432
Washington Real Estate Investment Trust, REIT (a)		90,200		2,431,792
				22,495,699
Retail - 2.58%
Fred’s, Inc., Class A		147,400		1,927,992
Marinemax, Inc. *		141,200		995,460
Stein Mart, Inc. *		260,800		3,223,488
The Men’s Wearhouse, Inc. (a)		124,400		3,234,400
				9,381,340
Retail Trade - 3.70%
Aaron, Inc., Class B (a)		272,500		7,112,250
Casey’s General Stores, Inc.		89,600		2,486,400
CSS Industries, Inc.		82,200		1,716,336
Haverty Furniture Companies, Inc. * (a)		182,800		2,133,276
				13,448,262
Sanitary Services - 1.84%
Insituform Technologies, Inc., Class A *		179,200		3,431,680
Waste Connections, Inc. *		118,900		3,251,915
				6,683,595
Semiconductors - 3.37%
Advanced Energy Industries, Inc. *		178,800		1,870,248
ATMI, Inc. *		80,700		1,371,093
Brooks Automation, Inc. *		210,000		1,365,000
Cabot Microelectronics Corp. *		39,900		1,378,545
FormFactor, Inc. *		110,200		2,417,788
Microsemi Corp. *		129,900		1,832,889
Teradyne, Inc. * (a)		241,000		1,988,250
				12,223,813
Software - 2.18%
Progress Software Corp. *		150,900		3,362,052
SPSS, Inc. *		50,100		2,494,980
Websense, Inc. *		136,200		2,064,792
				7,921,824
Steel - 0.57%
Carpenter Technology Corp.		97,600		2,079,856
Telecommunications Equipment &
Services - 1.03%
Premiere Global Services, Inc. *		265,700		2,486,952
Sonus Networks, Inc. *		590,000		1,244,900
				3,731,852
Tires & Rubber - 0.64%
Myers Industries, Inc.		227,405		2,330,901
Tobacco - 0.38%
Alliance One International, Inc. *		360,000		1,378,800
Transportation - 2.19%
Kirby Corp. *		148,700		5,509,335
UTI Worldwide, Inc. *		189,000		2,428,650
				7,937,985

The accompanying notes are an integral part of the financial statements.

279

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Small Company Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Trucking & Freight - 1.94%
Landstar Systems, Inc.		202,000	$	7,043,740
TOTAL COMMON STOCKS (Cost $341,271,088)			$	344,694,107
PREFERRED STOCKS - 1.70%
Banking - 0.46%
East West Bancorp., Inc., Series A, 8.00%		2,214		1,681,373
Crude Petroleum & Natural Gas - 0.49%
Whiting Petroleum Corp., 6.25%		13,800		1,766,400
Insurance - 0.75%
Assured Guaranty, Ltd., 8.50%		33,000		2,717,088
TOTAL PREFERRED STOCKS (Cost $5,221,594)			$	6,164,861
INVESTMENT COMPANIES - 1.12%
Investment Companies - 1.12%
First Opportunity Fund, Inc.		207,000		1,235,790
iShares Russell 2000 Value Index Fund		52,488		2,839,076
				4,074,866
TOTAL INVESTMENT COMPANIES (Cost $5,280,988)			$	4,074,866
SHORT TERM INVESTMENTS - 11.72%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		3,354,957	$	33,587,486
T. Rowe Price Reserve Investment Fund,
0.3265%		8,967,717		8,967,717
TOTAL SHORT TERM INVESTMENTS (Cost $42,523,660)			$	42,555,203
REPURCHASE AGREEMENTS - 0.20%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $734,001 on 09/01/2009, collateralized by $735,000 Federal National Mortgage Association, 4.12% due 05/06/2013 (valued at $749,847, including interest)	$	734,000	$	734,000
TOTAL REPURCHASE AGREEMENTS (Cost $734,000)			$	734,000
Total Investments (Small Company Value Fund) (Cost $395,031,330) - 109.66%			$	398,223,037
Other assets and liabilities, net - (9.66)%				(35,072,038	)
TOTAL NET ASSETS - 100.00%			$	363,150,999

Smaller Company Growth Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 95.89%
Advertising - 0.22%
inVentiv Health, Inc. *		659	$	10,478
Marchex, Inc., Class B		420		1,798
ValueClick, Inc. *		33,237	$	340,679
				352,955
Aerospace - 0.44%
AAR Corp. *		1,431		24,341
Aerovironment, Inc. *		849		23,882
BE Aerospace, Inc. *		3,549		60,794
Cubic Corp.		912		32,394
Esterline Technologies Corp. *		588		18,181
GenCorp, Inc. *		2,643		11,656
HEICO Corp., Class A		807		24,775
HEICO Corp.		329		12,193
Orbital Sciences Corp., Class A *		3,209		47,461
Teledyne Technologies, Inc. *		7,690		259,615
TransDigm Group, Inc. *		2,198		97,855
Triumph Group, Inc.		332		14,442
Woodward Governor Company		3,472		72,877
				700,466
Agriculture - 0.01%
Tejon Ranch Company *		721		18,436
Air Travel - 0.54%
Airtran Holdings, Inc. * (a)		34,030		226,300
Alaska Air Group, Inc. *		15,810		398,886
Allegiant Travel Company *		690		27,041
Continental Airlines, Inc., Class B *		7,853		104,209
Hawaiian Holdings, Inc. *		2,915		21,338
UAL Corp. *		8,187		51,005
US Airways Group, Inc. * (a)		7,499		25,497
				854,276
Apparel & Textiles - 2.11%
American Apparel, Inc. *		1,802		6,667
Carter’s, Inc. *		19,115		480,933
Crocs, Inc. *		4,765		30,258
Deckers Outdoor Corp. *		746		50,952
Gymboree Corp. *		7,955		356,304
Hanesbrands, Inc. *		5,386		113,429
Iconix Brand Group, Inc. *		20,717		355,918
Jos. A. Bank Clothiers, Inc. * (a)		8,191		360,486
K-Swiss, Inc., Class A		530		5,109
Lululemon Athletica, Inc. *		2,196		44,052
Maidenform Brands, Inc. *		23,477		378,919
Phillips-Van Heusen Corp.		2,932		110,771
Skechers U.S.A., Inc., Class A *		660		11,755
Steven Madden, Ltd. *		8,017		258,388
True Religion Apparel, Inc. *		1,369		30,980
Under Armour, Inc., Class A * (a)		1,898		45,305
Unifirst Corp.		7,528		300,292
Volcom, Inc. *		965		13,674
Warnaco Group, Inc. *		10,251		390,051
				3,344,243
Auto Parts - 0.25%
American Axle & Manufacturing Holdings, Inc.		1,743		10,772
Amerigon, Inc. *		15,698		99,839
ArvinMeritor, Inc.		1,392		10,176
Dana Holding Corp. *		2,830		14,801

The accompanying notes are an integral part of the financial statements.

280

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Auto Parts (continued)
Dorman Products, Inc. *		349	$	4,907
Fuel Systems Solutions, Inc. *		731		24,503
Gentex Corp.		7,831		114,254
Modine Manufacturing Company		617		5,226
Tenneco, Inc. *		2,687		42,186
TRW Automotive Holdings Corp. *		3,940		69,541
				396,205
Auto Services - 0.30%
Avis Budget Group, Inc. *		3,763		36,614
Monro Muffler Brake, Inc.		16,326		420,884
RSC Holdings, Inc. *		1,463		10,578
				468,076
Banking - 0.80%
Bank of the Ozarks, Inc.		382		9,527
Beneficial Mutual Bancorp, Inc. *		1,861		16,544
Cardinal Financial Corp.		1,521		12,016
Danvers Bancorp, Inc.		891		11,458
First Citizens Bancshares, Inc.		2,092		289,575
First Financial Bankshares, Inc.		329		16,397
First Financial Corp.		278		8,387
Glacier Bancorp, Inc.		1,749		26,078
Great Southern Bancorp, Inc.		246		5,178
Hancock Holding Company		679		26,012
Hanmi Financial Corp. *		660		997
Home Bancshares, Inc.		786		15,916
Investors Bancorp, Inc. *		2,942		27,184
NewAlliance Bancshares, Inc.		1,907		22,426
Oritani Financial Corp. (a)		637		8,498
Park National Corp.		221		13,231
Pinnacle Financial Partners, Inc. *		1,708		25,740
PrivateBancorp, Inc.		2,319		55,911
Provident Financial Services, Inc.		11,260		124,085
Rockville Financial, Inc.		249		3,332
Roma Financial Corp.		219		2,773
S.Y. Bancorp, Inc.		226		5,024
Signature Bank *		2,261		68,644
Sterling Financial Corp.		1,475		3,127
Suffolk Bancorp		542		15,691
SVB Financial Group *		1,876		74,571
Texas Capital Bancshares, Inc. *		13,190		218,294
United Community Banks, Inc. * (a)		23,182		156,247
ViewPoint Financial Group		634		7,938
				1,270,801
Biotechnology - 2.05%
Acorda Therapeutics, Inc. *		2,162		48,904
Affymetrix, Inc. *		4,021		31,042
Alnylam Pharmaceuticals, Inc. *		20,911		466,733
AMAG Pharmaceuticals, Inc. *		337		13,830
Arena Pharmaceuticals, Inc. *		3,406		15,838
Arqule, Inc. *		1,187		6,434
Bio Reference Labs, Inc. *		663		22,038
Bio-Rad Laboratories, Inc., Class A *		1,075		92,729
Exelixis, Inc. *		6,055		34,453
Facet Biotech Corp. *		1,396		14,016
Genomic Health, Inc. *		811		16,228
Geron Corp. * (a)		3,292		23,373
GTx, Inc. *		926		8,714
Human Genome Sciences, Inc. *		9,059		179,187
Illumina, Inc. * (a)		51,400		1,812,878
Immucor, Inc. *		4,006		72,469
Integra LifeSciences Holdings Corp. *		1,212		40,953
Intermune, Inc. * (a)		2,227		33,806
Lexicon Genetics, Inc. *		3,018		4,557
Life Sciences Research, Inc. *		351		2,724
Martek Biosciences Corp. *		1,886		46,301
Medarex, Inc. *		7,311		116,976
Medivation, Inc. *		1,028		26,029
Micromet, Inc. *		2,449		15,527
Momenta Pharmaceuticals, Inc. *		1,096		10,850
Nabi Biopharmaceuticals *		1,909		5,822
Nektar Therapeutics *		5,264		43,639
Neurocrine Biosciences, Inc. *		1,421		4,249
Orexigen Therapeutics, Inc. *		991		7,849
Osiris Therapeutics, Inc. * (a)		930		13,597
Progenics Pharmaceuticals, Inc. *		1,765		9,302
Sangamo Biosciences, Inc. *		1,971		13,817
				3,254,864
Broadcasting - 0.35%
CKX, Inc. *		2,410		15,207
Crown Media Holdings, Inc., Class A *		843		1,509
CTC Media, Inc. *		2,596		34,527
Fisher Communications, Inc. *		257		5,302
GigaMedia, Ltd. *		52,534		247,960
Liberty Media Corp. - Capital, Series A *		5,112		97,588
Mediacom Communications Corp., Class A *		2,289		11,514
Sirius XM Radio, Inc. *		219,396		147,763
				561,370
Building Materials & Construction - 1.31%
Argan, Inc. *		342		4,702
Beacon Roofing Supply, Inc. *		2,564		43,126
Builders FirstSource, Inc. *		511		3,930
Chicago Bridge & Iron Company N.V. (a)		111,500		1,755,010
China Architectural Engineering, Inc. *		1,187		2,018
Drew Industries, Inc. *		405		8,335
Dycom Industries, Inc. *		2,228		24,998
Eagle Materials, Inc.		2,357		62,060
EMCOR Group, Inc. *		1,872		43,374
Griffon Corp. *		1,056		11,162
MYR Group, Inc. *		1,060		21,730
Orion Marine Group, Inc. *		1,486		30,389
Sterling Construction Company, Inc. *		460		7,406
Texas Industries, Inc.		1,339		53,239
United States Lime & Minerals, Inc. *		161		6,002
				2,077,481
Business Services - 3.19%
3PAR, Inc. *		1,547		13,675
Administaff, Inc.		1,303		31,454
AMERCO, Inc. *		252		11,466
APAC Customer Services, Inc. *		52,895		289,865
Arbitron, Inc.		1,506		27,590

The accompanying notes are an integral part of the financial statements.

281

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Business Services (continued)
Ariba, Inc. *		2,485	$	28,478
Brinks Company		860		22,661
Chindex International, Inc. *		723		9,789
Coinstar, Inc. *		1,717		56,678
comScore, Inc. *		1,108		15,412
Constant Contact, Inc. *		1,204		25,079
Core-Mark Holding Company, Inc. *		191		5,484
CoStar Group, Inc. *		1,074		40,758
CRA International, Inc. *		14,340		400,516
CSG Systems International, Inc. *		1,998		30,110
DG Fastchannel, Inc. *		1,125		19,508
Euronet Worldwide, Inc. *		2,586		61,081
Exponent, Inc. *		775		21,917
EZCORP, Inc., Class A *		2,076		27,756
Forrester Research, Inc. *		907		21,351
FTI Consulting, Inc. *		9,227		401,744
Gartner Group, Inc., Class A *		3,488		58,110
Global Cash Access, Inc. *		29,279		212,273
GSI Commerce, Inc. *		2,250		39,015
Heidrick & Struggles International, Inc.		965		20,284
Hill International, Inc. *		1,364		8,102
Huron Consulting Group, Inc. *		1,102		20,740
ICF International, Inc. *		521		14,249
Informatica Corp. *		4,956		88,861
Kendle International, Inc. *		519		6,820
Kenexa Corp. *		1,146		14,050
Kforce, Inc. *		33,426		374,371
Korn/Ferry International *		1,266		17,509
Michael Baker Corp. *		451		15,100
Navigant Consulting Company *		2,838		35,730
Net 1 UEPS Technologies, Inc. *		16,710		318,994
OraSure Technologies, Inc. *		1,687		4,454
Parexel International Corp. *		32,052		411,227
Perot Systems Corp., Class A *		5,113		85,131
Pre-Paid Legal Services, Inc. *		406		18,611
Resources Connection, Inc. *		2,433		37,493
Rollins, Inc.		2,557		45,642
ScanSource, Inc. *		1,509		42,237
SonicWALL, Inc. *		3,060		22,919
Sourcefire, Inc. *		892		16,948
SRA International, Inc., Class A *		2,411		47,907
Standard Parking Corp. *		478		8,198
Stanley, Inc. *		816		20,930
SuccessFactors, Inc. *		1,938		23,004
Syntel, Inc.		1,417		56,779
TeleTech Holdings, Inc. *		2,166		36,952
Tetra Tech, Inc. *		3,425		101,175
The Hackett Group, Inc. *		69,470		182,011
TrueBlue, Inc. *		29,392		399,731
Tyler Technologies, Inc. *		25,374		386,446
Viad Corp.		579		10,463
VSE Corp.		5,203		178,515
Watson Wyatt Worldwide, Inc., Class A		2,425		105,973
				5,049,326
Cable & Television - 0.05%
Knology, Inc. *		1,714		12,409
Outdoor Channel Holdings, Inc. *		392		2,611
TiVo, Inc. *		5,943		58,301
				73,321
Cellular Communications - 1.68%
iPCS, Inc. *		874		13,800
NII Holdings, Inc. *		74,600		1,768,766
Novatel Wireless, Inc. *		41,146		397,059
RF Micro Devices, Inc. *		14,364		67,511
Syniverse Holdings, Inc. *		22,029		393,658
USA Mobility, Inc. *		1,286		16,371
				2,657,165
Chemicals - 1.72%
Albany Molecular Research, Inc. *		16,300		131,378
Albemarle Corp.		57,900		1,866,117
Balchem Corp.		1,043		25,971
Calgon Carbon Corp. *		2,957		42,285
Innophos Holdings, Inc.		513		9,793
Intrepid Potash, Inc. *		2,560		60,134
Landec Corp. *		1,406		8,591
LSB Industries, Inc. *		904		13,958
Newmarket Corp.		692		57,519
Sensient Technologies Corp.		14,486		377,650
Stepan Company		440		23,786
Valence Technology, Inc. * (a)		3,472		5,208
W.R. Grace & Company *		4,104		68,660
Zep, Inc.		1,226		19,591
Zoltek Companies, Inc. *		1,655		15,425
				2,726,066
Coal - 0.03%
International Coal Group, Inc. *		2,580		7,843
Patriot Coal Corp. *		4,867		43,122
				50,965
Colleges & Universities - 0.29%
Career Education Corp. *		15,622		371,023
Corinthian Colleges, Inc. *		4,701		90,118
				461,141
Commercial Services - 0.78%
Brink’s Home Security Holdings, Inc. *		2,603		81,396
Cardtronics, Inc. *		448		3,530
CBIZ, Inc. *		38,551		276,025
Cenveo, Inc. *		2,795		14,282
Chemed Corp.		1,284		55,905
DynCorp International, Inc. *		25,470		437,575
Exlservice Holdings, Inc. *		817		9,804
HMS Holdings Corp. *		1,471		55,324
Live Nation, Inc. *		4,042		28,415
Morningstar, Inc. *		1,085		48,066
Odyssey Marine Exploration, Inc. *		1,005		1,869
Perficient, Inc. *		917		7,116
Pool Corp.		2,751		65,529
Riskmetrics Group, Inc. *		1,753		27,277
Team, Inc. *		1,012		17,639
TNS, Inc. *		932		24,195
United Rentals, Inc. *		1,069		9,824

The accompanying notes are an integral part of the financial statements.

282

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Commercial Services (continued)
Wright Express Corp. *		2,073	$	65,341
				1,229,112
Computer Services - 0.13%
BluePhoenix Solutions, Ltd. *		61,939		203,160
Computers & Business Equipment - 2.99%
3Com Corp. *		79,768		346,991
3D Systems Corp. *		538		4,401
Acme Packet, Inc. *		1,644		13,415
Avocent Corp. *		22,340		364,589
BigBand Networks, Inc. *		34,810		135,411
Blue Coat Systems, Inc. *		18,206		357,020
CACI International, Inc., Class A *		9,775		449,259
Cogent, Inc. *		32,513		341,386
Compellent Technologies, Inc. * (a)		15,073		224,889
Digi International, Inc. *		1,347		11,544
Echelon Corp. * (a)		1,115		12,666
EMS Technologies, Inc. *		859		16,098
Falconstor Software, Inc. *		2,031		10,277
Furmanite Corp. *		1,963		7,184
Intermec, Inc. *		2,822		40,129
Isilon Systems, Inc. *		1,265		7,274
Ixia *		1,282		7,833
Jack Henry & Associates, Inc.		4,528		105,548
Limelight Networks, Inc. *		1,380		4,609
MICROS Systems, Inc. *		4,573		127,449
MTS Systems Corp.		429		11,386
National Instruments Corp.		3,316		84,989
NCI, Inc. *		371		10,889
Netezza Corp. *		2,212		21,235
NETGEAR, Inc. *		1,271		21,709
Netscout Systems, Inc. *		1,591		18,233
Palm, Inc. * (a)		6,664		88,831
Parametric Technology Corp. *		6,591		87,660
Plexus Corp. *		14,544		366,218
Radiant Systems, Inc. *		26,629		285,463
Sigma Designs, Inc. * (a)		1,513		21,379
Silicon Graphics International Corp. *		1,691		9,283
Silicon Storage Technology, Inc. *		1,606		2,939
Standard Microsystems Corp. *		434		10,103
STEC, Inc. * (a)		2,112		85,599
Stratasys, Inc. *		1,087		15,642
Super Micro Computer, Inc. *		1,472		11,732
Sykes Enterprises, Inc. *		1,994		41,854
Synaptics, Inc. * (a)		1,951		50,297
Trident Microsystems, Inc. *		3,558		8,575
Unisys Corp. *		21,063		51,394
Western Digital Corp. *		24,700		846,716
				4,740,098
Construction & Mining Equipment - 0.05%
Astec Industries, Inc. *		1,089		27,584
Carbo Ceramics, Inc.		731		31,469
Kaman Corp., Class A		505		10,469
Matrix Service Company *		1,479		16,299
				85,821
Construction Materials - 0.27%
Applied Industrial Technologies, Inc.		2,163		44,623
Clarcor, Inc.		2,896		92,846
Comfort Systems USA, Inc.		2,200		26,114
Simpson Manufacturing Company, Inc.		9,208		236,645
USG Corp. *		1,975		29,348
				429,576
Containers & Glass - 0.25%
Bway Holding Company *		620		9,610
Greif, Inc., Class A		1,384	��	68,563
Mobile Mini, Inc. *		2,017		35,761
Silgan Holdings, Inc.		5,659		275,141
				389,075
Correctional Facilities - 0.04%
Cornell Corrections, Inc. *		806		16,192
The Geo Group, Inc. *		2,908		53,275
				69,467
Cosmetics & Toiletries - 0.59%
Bare Escentuals, Inc. *		3,661		33,974
Chattem, Inc. *		6,831		418,330
Helen of Troy, Ltd. *		12,048		260,478
Revlon, Inc. *		955		4,336
Sally Beauty Holdings, Inc. *		4,660		33,133
Steiner Leisure, Ltd. *		5,415		179,886
				930,137
Crude Petroleum & Natural Gas - 3.22%
Arena Resources, Inc. *		60,573		1,852,322
Bill Barrett Corp. *		12,064		352,751
Cabot Oil & Gas Corp.		30,800		1,085,700
Cano Petroleum, Inc. *		99,950		68,966
Carrizo Oil & Gas, Inc. *		1,588		30,696
Concho Resources, Inc. *		3,642		118,693
Contango Oil & Gas Company *		720		32,357
Endeavour International Corp. *		6,304		6,997
EXCO Resources, Inc. *		27,334		400,716
GMX Resources, Inc. *		1,212		12,835
Goodrich Petroleum Corp. *		483		11,563
Gulfport Energy Corp. *		1,568		11,760
North American Energy Partners, Inc. *		46,340		291,015
Northern Oil And Gas, Inc. *		1,253		8,007
Penn Virginia Corp.		14,850		284,526
St. Mary Land & Exploration Company		3,549		93,339
SulphCo, Inc. *		1,906		3,031
Unit Corp. *		9,549		357,228
VAALCO Energy, Inc. *		1,153		5,442
Venoco, Inc. *		1,341		10,795
W&T Offshore, Inc.		680		6,718
Western Refining, Inc. *		1,052		6,386
Whiting Petroleum Corp. *		1,012		49,123
				5,100,966
Domestic Oil - 0.70%
Atlas America, Inc.		2,126		47,155
Brigham Exploration Company *		4,474		29,305
Clayton Williams Energy, Inc. *		445		8,811
Comstock Resources, Inc. *		10,998		388,559

The accompanying notes are an integral part of the financial statements.

283

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Domestic Oil (continued)
Delta Petroleum Corp. *		4,667	$	8,401
Holly Corp.		1,574		35,950
McMoran Exploration Company * (a)		4,350		36,279
Natural Gas Services Group, Inc. *		15,593		222,824
Oil States International, Inc. *		10,967		323,197
Warren Resources, Inc. *		3,162		7,747
				1,108,228
Drugs & Health Care - 0.58%
Abaxis, Inc. *		1,246		33,144
Abiomed, Inc. *		1,764		14,606
Almost Family, Inc. *		414		11,414
Dendreon Corp. *		3,172		74,130
Durect Corp. *		4,173		10,182
Hansen Medical, Inc. *		1,674		5,708
Immunogen, Inc. *		1,509		11,001
Landauer, Inc.		185		10,182
Luminex Corp. *		2,229		34,059
Maxygen, Inc. *		1,624		11,498
Meridian Bioscience, Inc.		2,305		55,551
Oculus Innovative Sciences, Inc. * (a)		22,490		55,325
Opko Health, Inc. *		2,449		5,706
Pain Therapeutics, Inc. *		2,023		10,317
Quidel Corp. *		1,540		23,778
Seattle Genetics, Inc. *		4,732		57,967
Vivus, Inc. *		60,504		374,520
West Pharmaceutical Services, Inc.		1,863		74,874
XenoPort, Inc. *		1,518		27,673
Zymogenetics, Inc. *		2,139		12,577
				914,212
Educational Services - 0.78%
American Public Education, Inc. *		9,137		316,597
Capella Education Company * (a)		6,628		419,884
ChinaCast Education Corp. *		35,081		208,030
Grand Canyon Education, Inc. *		13,257		230,672
K12, Inc. *		987		20,322
Lincoln Educational Services Corp. *		609		13,508
Renaissance Learning, Inc.		247		2,448
Universal Technical Institute, Inc. *		1,141		22,968
				1,234,429
Electrical Equipment - 3.85%
A.O. Smith Corp.		39,400		1,499,170
Aaon, Inc.		730		15,242
American Science & Engineering, Inc.		5,878		362,026
Anaren, Inc. *		781		12,559
Anixter International, Inc. * (a)		1,705		59,811
AZZ, Inc. *		691		23,784
Bel Fuse, Inc., Class A		31		539
Capstone Turbine Corp. * (a)		209,278		272,061
DTS, Inc. *		989		26,505
General Cable Corp. *		13,557		478,291
GrafTech International, Ltd. *		28,984		412,442
Greatbatch, Inc. *		17,268		371,780
Houston Wire & Cable Company		948		10,912
Plug Power, Inc. *		3,053		2,137
Polypore International, Inc. *		1,381		15,702
Powell Industries, Inc. *		485		18,343
Power-One, Inc. *		3,726		4,844
Preformed Line Products Company		74		2,775
Universal Electronics, Inc. *		774		14,567
Varian, Inc. *		1,641		84,052
Vicor Corp. *		1,099		8,078
Watsco, Inc.		45,400		2,398,482
				6,094,102
Electrical Utilities - 0.30%
Avista Corp.		15,570		303,927
EnerNOC, Inc. *		1,001		26,967
ITC Holdings Corp.		2,830		131,821
Pike Electric Corp. *		520		5,777
				468,492
Electronics - 1.66%
Anadigics, Inc. *		71,044		273,519
Axsys Technologies, Inc. *		562		30,348
Bel Fuse, Inc., Class B		310		5,239
Cogo Group, Inc. *		1,024		5,530
Daktronics, Inc.		1,955		15,777
Electro Scientific Industries, Inc. *		537		6,594
Ener1, Inc. * (a)		2,582		16,473
Enersys *		15,435		307,002
FEI Company *		2,126		50,301
Harbin Electric, Inc. *		23,170		287,540
ICx Technologies, Inc. *		675		3,206
II-VI, Inc. *		13,645		365,140
Integrated Electrical Services, Inc. *		13,916		116,060
IPG Photonics Corp. *		1,290		15,635
Itron, Inc. *		2,248		123,168
Maxwell Technologies, Inc. *		1,282		17,346
Multi-Fineline Electronix, Inc. *		567		15,672
NVE Corp. *		3,676		195,563
OSI Systems, Inc. *		890		15,014
Rogers Corp. *		312		8,143
Supertex, Inc. *		619		15,995
Sycamore Networks, Inc. *		11,303		34,361
Taser International, Inc. *		3,317		15,092
Thomas & Betts Corp. *		3,004		83,181
Tyco Electronics, Ltd. *		7,500		171,150
Universal Display Corp. * (a)		1,863		20,307
Zebra Technologies Corp., Class A *		3,379		84,441
Zoran Corp. *		29,560		326,638
				2,624,435
Energy - 1.35%
Alon USA Energy, Inc.		530		4,993
Clean Energy Fuels Corp. * (a)		1,819		22,774
Comverge, Inc. *		932		10,382
Energy Conversion Devices, Inc. * (a)		2,602		29,116
Evergreen Solar, Inc. * (a)		10,855		18,345
Fuelcell Energy, Inc. *		3,514		12,826
GT Solar International, Inc. *		2,021		10,368
McDermott International, Inc. *		82,800		1,967,328
Orion Energy Systems, Inc. *		832		2,604
Ormat Technologies, Inc.		1,161		41,866

The accompanying notes are an integral part of the financial statements.

284

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Energy (continued)
Rosetta Resources, Inc. *		1,487	$	17,561
				2,138,163
Financial Services - 2.88%
AmeriCredit Corp. * (a)		4,910		84,747
Asset Acceptance Capital Corp. *		562		4,091
Bankrate, Inc. *		799		22,763
Cass Information Systems, Inc.		363		11,333
Cohen & Steers, Inc.		623		12,254
CompuCredit Holdings Corp. * (a)		954		4,169
Credit Acceptance Corp. *		614		18,733
Dollar Financial Corp. *		1,362		23,740
Duff & Phelps Corp.		1,101		18,761
E*TRADE Financial Corp. * (a)		59,743		105,148
Encore Capital Group, Inc. *		16,474		245,463
Evercore Partners, Inc.		519		13,068
FBR Capital Markets Corp. *		1,620		8,764
FCStone Group, Inc. *		750		3,592
Federal Home Loan Mortgage Corp. * (a)		36,870		84,432
Federal National Mortgage Association * (a)		63,009		121,607
GAMCO Investors, Inc., Class A		189		8,530
Heartland Payment Systems, Inc.		1,279		16,000
Interactive Brokers Group, Inc. *		2,306		43,768
Investment Technology Group, Inc. *		2,468		60,812
KBW, Inc. *		1,156		33,085
Knight Capital Group, Inc. *		23,593		474,691
MarketAxess Holdings, Inc. *		17,767		197,036
Meridian Interstate Bancorp, Inc. *		585		5,423
NewStar Financial, Inc. *		587		1,620
optionsXpress Holdings, Inc.		2,468		41,068
Portfolio Recovery Associates, Inc. *		871		38,254
Raymond James Financial, Inc. (a)		82,800		1,883,700
Stifel Financial Corp. *		10,622		598,019
UMB Financial Corp.		871		34,866
Waddell & Reed Financial, Inc., Class A		11,520		305,626
Westwood Holdings Group, Inc.		325		12,519
World Acceptance Corp. *		823		21,423
				4,559,105
Food & Beverages - 0.97%
American Dairy, Inc. *		492		15,104
American Italian Pasta Company, Class A *		1,192		36,070
Calavo Growers, Inc.		14,302		251,715
Cal-Maine Foods, Inc.		254		7,252
Chiquita Brands International, Inc. * (a)		12,113		186,540
Coca-Cola Bottling Company Consolidated		172		9,298
Diamond Foods, Inc.		11,168		312,146
Flowers Foods, Inc.		15,905		378,062
Green Mountain Coffee Roasters, Inc. * (a)		1,943		116,949
Heckmann Corp. *		33,356		138,761
Lance, Inc.		508		12,319
M & F Worldwide Corp. *		656		12,871
National Beverage Corp. *		325		3,296
Smart Balance, Inc. *		3,366		21,509
Tootsie Roll Industries, Inc.		811		19,180
TreeHouse Foods, Inc. *		625		23,156
				1,544,228
Forest Products - 0.01%
Deltic Timber Corp.		299		15,273
Gas & Pipeline Utilities - 0.02%
Global Industries, Ltd. *		2,915		27,692
Gold - 0.16%
Gammon Gold, Inc. *		37,550		252,711
Healthcare Products - 5.02%
Accuray, Inc. *		2,551		16,377
Align Technology, Inc. *		3,202		42,907
American Medical Systems Holdings, Inc. *		34,933		532,379
Atrion Corp.		521		71,377
ATS Medical, Inc. *		2,617		7,040
Bruker BioSciences Corp. *		50,367		511,225
C.R. Bard, Inc.		16,800		1,353,744
Cantel Medical Corp. *		792		10,645
CardioNet, Inc. *		24,483		176,278
Clinical Data, Inc. *		460		7,254
Conceptus, Inc. *		1,736		31,456
Cryolife, Inc. *		1,514		11,279
Cyberonics, Inc. *		1,547		23,267
Cypress Biosciences, Inc. *		2,165		15,068
Haemonetics Corp. *		8,428		443,650
Hanger Orthopedic Group, Inc. *		1,773		24,840
Herbalife, Ltd.		2,276		68,917
ICU Medical, Inc. *		10,506		390,718
Insulet Corp. *		1,021		9,403
Kensey Nash Corp. *		293		7,650
Mannkind Corp. * (a)		3,790		29,524
Masimo Corp. *		2,780		69,834
Medicines Company *		3,000		22,860
Merit Medical Systems, Inc. *		1,508		27,219
Natus Medical, Inc. *		1,583		22,558
NutriSystem, Inc.		1,572		22,370
Nuvasive, Inc. *		2,073		83,065
Orthofix International NV *		871		23,839
PSS World Medical, Inc. *		3,377		69,026
Sirona Dental Systems, Inc. *		4,976		131,566
Somanetics Corp. *		681		8,908
SonoSite, Inc. *		974		22,665
St. Jude Medical, Inc. *		31,900		1,229,426
Stereotaxis, Inc. * (a)		1,808		6,364
STERIS Corp.		14,521		421,399
SurModics, Inc. *		845		19,342
Symmetry Medical, Inc. *		2,027		22,338
Synovis Life Technologies, Inc. *		26,585		418,182
The Cooper Companies, Inc.		49,200		1,344,144
Thoratec Corp. *		3,212		84,283
TomoTherapy, Inc. *		2,072		6,941
Ulta Salon, Cosmetics & Fragrance, Inc. *		1,468		16,911
USANA Health Sciences, Inc. *		350		11,032
Volcano Corp. *		2,473		35,364
Wright Medical Group, Inc. *		2,163		35,127
Zoll Medical Corp. *		1,193		21,450
				7,961,211
Healthcare Services - 2.00%
Air Methods Corp. *		624		21,297

The accompanying notes are an integral part of the financial statements.

285

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Healthcare Services (continued)
Alliance Imaging, Inc. *		1,446	$	7,996
Amedisys, Inc. *		7,616		339,217
AMN Healthcare Services, Inc. *		1,198		11,824
athenahealth, Inc. *		1,238		49,805
Brookdale Senior Living, Inc.		1,479		23,501
Catalyst Health Solutions, Inc. *		2,118		60,490
CorVel Corp. *		476		14,309
Emergency Medical Services Corp., Class A *		7,016		318,176
Emeritus Corp. *		1,218		21,961
Enzo Biochem, Inc. *		666		3,390
Gentiva Health Services, Inc. *		1,016		22,403
Healthcare Services Group, Inc.		2,339		41,354
Healthsouth Corp. *		5,022		78,393
Healthways, Inc. *		1,916		25,061
HLTH Corp. *		5,597		81,213
ICON PLC, SADR *		17,436		376,966
IPC The Hospitalist Company *		778		22,982
LHC Group, Inc. *		12,933		316,212
Magellan Health Services, Inc. *		1,305		41,877
National Healthcare Corp.		388		14,829
Palomar Medical Technologies, Inc. *		976		13,547
Phase Forward, Inc. *		27,293		350,988
Psychiatric Solutions, Inc. *		6,564		175,850
Star Scientific, Inc. * (a)		4,070		4,070
Sun Healthcare Group, Inc. *		868		7,152
The Advisory Board Company *		7,607		201,053
The Ensign Group, Inc.		12,605		174,831
Town Sports International Holdings, Inc. *		834		2,294
US Physical Therapy, Inc. *		19,464		282,617
Virtual Radiologic Corp. *		404		4,666
WebMD Health Corp. *		553		18,188
WellCare Health Plans, Inc. *		1,561		37,885
				3,166,397
Homebuilders - 0.05%
Hovnanian Enterprises, Inc., Class A *		1,955		10,498
KB Home		1,605		29,227
M/I Homes, Inc. *		494		7,815
Meritage Homes Corp. *		593		13,289
Ryland Group, Inc.		857		19,643
				80,472
Hotels & Restaurants - 1.39%
AFC Enterprises, Inc. *		1,432		11,886
BJ’s Restaurants, Inc. *		18,929		324,632
Buffalo Wild Wings, Inc. *		9,530		392,922
California Pizza Kitchen, Inc. *		1,296		18,222
CEC Entertainment, Inc. *		1,310		35,042
Choice Hotels International, Inc.		1,230		36,285
CKE Restaurants, Inc.		2,628		25,413
Denny’s Corp. *		5,416		13,811
DineEquity, Inc. *		552		11,636
Jack in the Box, Inc. *		16,477		335,966
Krispy Kreme Doughnuts, Inc. *		1,624		4,986
Morgans Hotel Group Company *		1,498		7,385
O’Charley’s, Inc.		13,208		101,041
P.F. Chang’s China Bistro, Inc. * (a)		10,607		338,469
Panera Bread Company, Class A *		1,690		88,235
Papa John’s International, Inc. *		1,272		29,676
Peets Coffee & Tea, Inc. *		734		19,311
Red Robin Gourmet Burgers, Inc. *		14,552		280,562
Sonic Corp. *		3,281		37,502
Texas Roadhouse, Inc., Class A *		2,935		29,908
The Cheesecake Factory, Inc. *		3,247		59,647
The Steak & Shake Company *		691		7,242
				2,209,779
Household Appliances - 0.06%
National Presto Industries, Inc.		273		22,869
The Toro Company		2,036		77,226
				100,095
Household Products - 0.30%
Jarden Corp. *		19,810		482,373
Industrial Machinery - 1.27%
Actuant Corp., Class A		3,770		53,270
Badger Meter, Inc.		800		28,952
Dionex Corp. *		1,006		60,501
Gardner Denver, Inc. *		2,953		95,884
Gorman-Rupp Company (a)		851		20,041
Graco, Inc.		3,406		85,525
IDEX Corp.		4,590		121,360
Lindsay Corp. (a)		665		27,604
Lufkin Industries, Inc.		294		13,009
Middleby Corp. *		948		44,736
NATCO Group, Inc. *		1,133		47,133
OYO Geospace Corp. *		269		5,410
Pall Corp.		41,700		1,239,741
Raser Technologies, Inc. * (a)		2,358		4,952
Robbins & Myers, Inc.		1,587		36,850
Rofin-Sinar Technologies, Inc. *		1,644		37,384
Valmont Industries, Inc.		1,045		86,035
				2,008,387
Industrials - 0.25%
Clean Harbors, Inc. *		1,340		79,087
EnergySolutions, Inc.		36,348		322,770
				401,857
Insurance - 2.48%
Ambac Financial Group, Inc. *		16,344		28,766
Amtrust Financial Services, Inc.		764		9,650
Citizens, Inc., Class A *		2,404		16,371
Crawford & Company, Class B *		768		3,556
Crawford & Company *		425		1,466
eHealth, Inc. *		1,196		22,126
Everest Re Group, Ltd.		20,000		1,686,200
Greenlight Capital Re, Ltd., Class A *		1,194		21,850
Infinity Property & Casualty Corp.		7,324		322,036
Life Partners Holdings, Inc.		423		7,250
MGIC Investment Corp. *		2,477		20,138
Navigators Group, Inc. *		819		42,506
Radian Group, Inc.		1,630		14,947
RLI Corp.		1,045		55,396
Tower Group, Inc.		17,077		409,677

The accompanying notes are an integral part of the financial statements.

286

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Insurance (continued)
Universal Insurance Holdings, Inc.		507	$	2,545
Willis Group Holdings, Ltd.		49,400		1,274,026
				3,938,506
International Oil - 0.04%
ATP Oil & Gas Corp. *		2,153		24,006
BPZ Energy, Inc. *		4,031		24,508
Cheniere Energy, Inc. *		3,039		8,357
Tesco Corp. *		1,804		13,855
				70,726
Internet Content - 0.61%
Dice Holdings, Inc. *		1,056		6,178
InfoSpace, Inc. *		21,885		177,269
Internet Capital Group, Inc. *		2,089		13,871
Liquidity Services, Inc. *		952		10,367
LoopNet, Inc. *		1,552		12,400
Move, Inc. *		78,529		226,949
RightNow Technologies, Inc. *		1,261		15,863
Sohu.com, Inc. *		1,741		106,375
TechTarget, Inc. *		705		4,526
TeleCommunication Systems, Inc. *		49,935		376,510
The Knot, Inc. *		1,630		16,463
				966,771
Internet Retail - 0.07%
1-800-Flowers.com, Inc., Class A *		1,510		4,666
Blue Nile, Inc. *		825		45,688
Internet Brands, Inc., Class A *		1,304		9,506
Overstock.com, Inc. *		904		11,264
PetMed Express, Inc.		1,320		23,879
Shutterfly, Inc. *		534		7,722
Stamps.com, Inc. *		741		6,387
				109,112
Internet Service Provider - 2.07%
Cogent Communications Group, Inc. *		2,382		22,986
Equinix, Inc. * (a)		34,700		2,923,822
Rackspace Hosting, Inc. *		2,732		35,352
Terremark Worldwide, Inc. *		2,394		12,617
United Online, Inc.		40,804		285,628
				3,280,405
Internet Software - 1.13%
Art Technology Group, Inc. *		96,454		389,674
Chordiant Software, Inc. *		1,702		6,655
Clicksoftware Technologies, Ltd. *		26,440		165,514
Cybersource Corp. *		32,712		502,129
DealerTrack Holdings, Inc. *		2,168		43,750
Digital River, Inc. *		2,171		76,680
eResearch Technology, Inc. *		2,376		14,945
F5 Networks, Inc. * (a)		4,468		154,101
NIC, Inc. *		29,153		223,604
RealNetworks, Inc. *		5,349		18,936
S1 Corp. *		3,006		18,908
Sapient Corp. *		5,797		42,492
Switch & Data Facilities Company, Inc. *		1,271		17,273
TIBCO Software, Inc. *		9,983		88,549
VASCO Data Security International, Inc. *		1,690		14,635
Vocus, Inc. *		1,039		17,518
				1,795,363
Investment Companies - 0.00%
Teton Advisors, Inc. * (l)		2		0
Leisure Time - 1.29%
Bally Technologies, Inc. *		11,855		479,298
Brunswick Corp.		2,494		23,169
Cinemark Holdings, Inc.		644		6,466
Isle of Capri Casinos, Inc. *		28,720		293,806
Life Time Fitness, Inc. *		2,061		64,138
Lions Gate Entertainment Corp. *		6,588		43,217
Marine Products Corp.		196		1,000
Monarch Casino & Resort, Inc. *		356		3,571
National Cinemedia, Inc.		2,396		35,940
Penn National Gaming, Inc. *		12,230		357,238
Perfect World Co, Ltd. *		11,190		426,899
Pinnacle Entertainment, Inc. *		1,188		11,143
Polaris Industries, Inc.		1,762		66,445
Scientific Games Corp., Class A *		3,942		60,786
Shuffle Master, Inc. *		3,035		23,005
Vail Resorts, Inc. *		727		24,078
WMS Industries, Inc. *		2,780		117,677
				2,037,876
Life Sciences - 0.12%
American Ecology Corp.		984		17,987
Celera Corp. *		8,932		58,415
Dawson Geophysical Company *		287		7,115
Halozyme Therapeutics, Inc. *		4,829		35,928
Incyte Corp. *		4,983		32,838
Sequenom, Inc. * (a)		3,303		21,106
Symyx Technologies, Inc. *		1,938		11,977
				185,366
Liquor - 0.28%
Boston Beer Company, Inc. *		549		21,823
Central European Distribution Corp. *		13,060		420,532
				442,355
Manufacturing - 0.68%
Acuity Brands, Inc.		2,327		74,720
AptarGroup, Inc.		6,166		211,987
ATC Technology Corp. *		16,195		338,799
Blount International, Inc. *		801		7,345
Ceradyne, Inc. *		486		9,098
Coherent, Inc. *		1,387		31,013
ESCO Technologies, Inc. *		1,491		55,256
Force Protection, Inc. *		3,979		21,089
GenTek, Inc. *		576		15,800
Hexcel Corp. *		5,491		59,742
iRobot Corp. *		1,057		12,124
John Bean Technologies Corp.		1,567		26,153
K-Tron International, Inc. *		144		12,128
Mine Safety Appliances Company		1,942		51,910
Nordson Corp.		1,720		92,158
Raven Industries, Inc.		917		26,501
Smith & Wesson Holding Corp. *		2,684		14,440

The accompanying notes are an integral part of the financial statements.

287

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Manufacturing (continued)
Spartan Motors, Inc.		1,757	$	9,541
Sturm Ruger & Company, Inc.		1,078		14,887
				1,084,691
Medical Instruments - 0.00%
MAKO Surgical Corp. *		914		7,815
Medical-Drugs - 0.00%
SIGA Technologies, Inc. *		1,058		7,744
Medical-Hospitals - 1.27%
Cepheid, Inc. *		3,295		39,507
Clarient, Inc. *		1,757		6,905
DexCom, Inc. *		2,202		17,198
EV3, Inc. *		3,642		46,399
Exactech, Inc. *		467		6,944
Genoptix, Inc. * (a)		11,475		329,218
IRIS International, Inc. *		1,020		10,486
MWI Veterinary Supply, Inc. *		655		24,372
Neogen Corp. *		798		22,344
Orthovita, Inc. *		3,865		16,310
Tenet Healthcare Corp. *		27,298		127,209
VCA Antech, Inc. *		55,118		1,364,170
Vital Images, Inc. *		777		9,876
				2,020,938
Metal & Metal Products - 2.09%
Ampco-Pittsburgh Corp.		245		5,851
Brush Engineered Materials, Inc. *		402		8,916
Crown Holdings, Inc. *		114,800		2,850,484
Dynamic Materials Corp.		731		11,835
Fushi Copperweld, Inc. *		554		4,327
Haynes International, Inc. *		441		11,955
Horsehead Holding Corp. *		1,995		22,344
L.B. Foster Company *		580		17,296
Matthews International Corp., Class A		1,731		60,308
Mueller Industries, Inc.		1,051		25,424
Sun Hydraulics, Inc.		247		4,552
Thompson Creek Metals Company, Inc. *		24,900		286,350
				3,309,642
Mining - 0.29%
Allied Nevada Gold Corp. *		2,627		21,252
AMCOL International Corp.		1,305		28,893
General Moly, Inc. *		2,246		6,154
Hecla Mining Company *		4,297		12,805
Royal Gold, Inc.		2,200		87,296
Stillwater Mining Company *		48,260		309,347
				465,747
Mobile Homes - 0.01%
Thor Industries, Inc.		714		18,600
Office Furnishings & Supplies - 0.06%
Herman Miller, Inc.		1,063		17,242
Office Depot, Inc. *		10,156		53,014
OfficeMax, Inc.		2,158		24,407
				94,663
Oil & Gas Drilling - 0.06%
Atwood Oceanics, Inc. *		3,286		93,585
Paper - 0.10%
Rock-Tenn Company, Class A		2,969		152,280
Petroleum Services - 2.44%
Approach Resources, Inc. *		702		5,265
Core Laboratories N.V. (a)		5,071		469,930
Delek US Holdings, Inc.		493		3,988
Dril-Quip, Inc. *		53,176		2,268,488
Exterran Holdings, Inc. *		2,193		39,540
GulfMark Offshore, Inc. *		764		22,783
Hercules Offshore, Inc. * (a)		62,391		286,999
Hornbeck Offshore Services, Inc. *		13,031		287,464
Key Energy Services, Inc. *		35,955		257,078
Pioneer Drilling Company *		2,858		16,291
Rex Energy Corp. *		1,345		8,016
RPC, Inc.		1,665		15,218
SEACOR Holdings, Inc. *		382		29,082
Superior Energy Services, Inc. *		2,889		52,666
Superior Well Services, Inc. *		868		7,838
T-3 Energy Services, Inc. *		354		6,223
TETRA Technologies, Inc. *		2,140		18,875
Willbros Group, Inc. *		2,245		27,950
World Fuel Services Corp.		796		35,772
				3,859,466
Pharmaceuticals - 3.16%
Affymax, Inc. *		751		17,108
Akorn, Inc. *		3,284		4,302
Alexion Pharmaceuticals, Inc. *		9,283		419,035
Alkermes, Inc. *		5,377		48,662
Allos Therapeutics, Inc. *		2,293		16,854
American Oriental Bioengineering, Inc. *		2,302		11,717
Amicus Therapeutics, Inc. *		384		3,775
Array BioPharma, Inc. *		2,584		10,646
Auxilium Pharmaceuticals, Inc. *		2,428		69,902
BioMarin Pharmaceutical, Inc. *		5,687		93,665
Cadence Pharmaceuticals, Inc. *		932		10,168
Caraco Pharmaceutical Labs *		611		2,462
Cubist Pharmaceuticals, Inc. *		21,896		452,809
Emergent Biosolutions, Inc. *		22,965		425,541
Enzon Pharmaceuticals, Inc. * (a)		2,497		17,903
Idenix Pharmaceuticals, Inc. *		832		2,546
Inspire Pharmaceuticals, Inc. *		3,795		22,656
Isis Pharmaceuticals, Inc. * (a)		32,872		530,554
K-V Pharmaceutical Company, Class A *		1,250		2,862
Ligand Pharmaceuticals, Inc., Class B *		5,744		13,786
MAP Pharmaceuticals, Inc. *		759		6,710
Medicis Pharmaceutical Corp., Class A		3,347		61,819
Myriad Pharmaceuticals, Inc. *		1,351		6,079
NPS Pharmaceuticals, Inc. *		2,680		11,176
Onyx Pharmaceuticals, Inc. *		3,476		111,475
OSI Pharmaceuticals, Inc. * (a)		3,297		110,186
Par Pharmaceutical Companies, Inc. *		1,978		40,450
PDL BioPharma, Inc.		4,417		39,974
Pharmasset, Inc. *		1,191		21,986
PharMerica Corp. *		1,734		34,767
POZEN, Inc. *		1,348		9,072
Questcor Pharmaceuticals, Inc. *		3,298		19,161

The accompanying notes are an integral part of the financial statements.

288

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Pharmaceuticals (continued)
Regeneron Pharmaceuticals, Inc. *		3,542	$	80,510
Rigel Pharmaceuticals, Inc. *		1,350		9,518
Salix Pharmaceuticals, Ltd. *		2,740		34,277
Savient Pharmaceuticals, Inc. *		2,239		31,100
Sepracor, Inc. *		6,217		112,839
Sucampo Pharmaceuticals, Inc. *		443		2,485
Theravance, Inc. *		2,728		42,475
United Therapeutics Corp. * (a)		20,894		1,912,010
Valeant Pharmaceuticals International *		4,441		114,977
ViroPharma, Inc. *		1,558		12,464
XOMA, Ltd. *		7,941		6,909
				5,009,372
Pollution Control - 0.01%
Fuel Tech, Inc. *		950		9,709
Publishing - 0.37%
Consolidated Graphics, Inc. *		17,490		361,344
Dolan Media Company *		1,271		13,473
John Wiley & Sons, Inc., Class A		2,487		79,758
Martha Stewart Living Omnimedia, Inc., Class A *		1,520		10,898
The New York Times Company, Class A		2,693		20,494
VistaPrint, Ltd. *		2,285		94,690
				580,657
Railroads & Equipment - 0.44%
Genesee & Wyoming, Inc., Class A *		2,145		67,310
Kansas City Southern * (a)		22,510		537,989
Wabtec Corp.		2,581		96,658
				701,957
Real Estate - 1.55%
Alexander’s, Inc., REIT *		116		32,863
Annaly Capital Management, Inc., REIT		116,900		2,027,046
Ashford Hospitality Trust, Inc., REIT		4,888		15,055
Consolidated Tomoka Land Company		108		3,774
DuPont Fabros Technology, Inc., REIT		1,498		19,594
Equity Lifestyle Properties, Inc., REIT		1,616		65,044
Forest City Enterprises, Inc., Class A		4,186		38,720
Hilltop Holdings, Inc. *		893		10,966
Jones Lang LaSalle, Inc.		822		38,535
PICO Holdings, Inc. *		1,121		37,139
PS Business Parks, Inc., REIT		378		20,008
Saul Centers, Inc., REIT		265		8,636
Tanger Factory Outlet Centers, Inc., REIT		1,132		42,586
Taubman Centers, Inc., REIT		3,021		95,675
				2,455,641
Retail - 2.89%
AnnTaylor Stores Corp. *		1,166		16,417
Cash America International, Inc.		17,590		493,048
Chico’s FAS, Inc. *		157,884		2,009,863
Citi Trends, Inc. *		835		18,612
Coldwater Creek, Inc. *		3,377		25,125
Conn’s, Inc. * (a)		23,230		262,731
DSW, Inc., Class A *		291		4,412
FGX International Holdings, Ltd. *		814		11,754
Finish Line, Inc.		33,150		273,488
Foot Locker, Inc.		24,860		265,008
Genesco, Inc. *		12,030		263,457
J. Crew Group, Inc. *		2,846		97,020
Pantry, Inc. *		20,640		312,696
Retail Ventures, Inc. *		1,653		8,001
Saks, Inc. * (a)		4,804		29,304
Shoe Carnival, Inc. *		6,335		99,586
Susser Holdings Corp. *		170		1,824
Systemax, Inc. *		413		5,493
Talbots, Inc.		915		5,453
The Dress Barn, Inc. * (a)		21,904		355,502
Titan Machinery, Inc. *		749		9,026
Tween Brands, Inc. *		702		5,335
				4,573,155
Retail Grocery - 0.09%
Arden Group, Inc.		72		8,496
PriceSmart, Inc.		419		7,437
Spartan Stores, Inc.		1,256		16,667
The Great Atlantic & Pacific Tea Company, Inc. *		1,958		13,138
United Natural Foods, Inc. *		2,320		62,687
Winn-Dixie Stores, Inc. *		2,014		27,733
				136,158
Retail Trade - 4.63%
99 Cents Only Stores *		969		13,149
Aaron, Inc., Class B (a)		14,212		370,933
Aeropostale, Inc. *		3,835		150,140
Big Lots, Inc. *		16,667		423,675
BJ’s Wholesale Club, Inc. *		2,022		65,917
Casey’s General Stores, Inc.		2,891		80,225
Charlotte Russe Holding, Inc. *		1,188		20,659
Charming Shoppes, Inc. *		2,297		12,036
Children’s Place Retail Stores, Inc. *		1,429		43,342
Dick’s Sporting Goods, Inc. *		4,958		111,109
First Cash Financial Services, Inc. *		18,044		339,047
Fossil, Inc. *		2,653		67,333
Gaiam, Inc., Class A *		902		5,033
hhgregg, Inc. *		23,433		404,922
Hibbett Sports, Inc. *		12,085		212,334
Hot Topic, Inc. *		27,483		191,282
Kohl’s Corp. *		45,900		2,367,981
Lumber Liquidators, Inc. *		758		16,676
NBTY, Inc. *		3,167		117,369
New York & Company, Inc. *		1,531		7,089
Pacific Sunwear of California, Inc. *		2,416		10,679
Pier 1 Imports, Inc. *		2,526		6,391
Rite Aid Corp. *		17,636		27,160
The Buckle, Inc. (a)		10,420		275,609
The Wet Seal, Inc., Class A *		5,239		18,389
Tractor Supply Company *		41,737		1,964,143
Zumiez, Inc. *		1,199		15,155
				7,337,777
Sanitary Services - 1.10%
Darling International, Inc. *		4,676		32,779
Waste Connections, Inc. *		62,084		1,697,997

The accompanying notes are an integral part of the financial statements.

289

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Sanitary Services (continued)
Waste Services, Inc. *		1,695	$	7,441
				1,738,217
Semiconductors - 3.09%
Actel Corp. *		510		5,549
Advanced Analogic Technologies, Inc. *		47,289		213,273
Advanced Energy Industries, Inc. *		947		9,906
American Superconductor Corp. * (a)		2,346		75,799
Amkor Technology, Inc. *		6,767		37,489
Applied Micro Circuits Corp. *		3,747		29,751
Atmel Corp. *		24,359		100,603
ATMI, Inc. *		1,153		19,589
Brooks Automation, Inc. *		2,377		15,450
Cabot Microelectronics Corp. *		866		29,920
Cavium Networks, Inc. *		11,634		236,287
Cirrus Logic, Inc. *		3,506		17,390
Conexant Systems, Inc. *		2,816		7,688
Cymer, Inc. *		23,602		830,318
Cypress Semiconductor Corp. *		8,160		82,579
Diodes, Inc. *		1,884		38,189
Emcore Corp. *		2,733		2,897
Entegris, Inc. *		3,227		12,908
Fairchild Semiconductor International, Inc. *		2,452		24,667
FormFactor, Inc. *		2,807		61,586
Hittite Microwave Corp. *		1,106		38,068
International Rectifier Corp. *		2,658		49,891
IXYS Corp. *		1,300		8,840
Kopin Corp. *		3,836		14,769
Kulicke & Soffa Industries, Inc. *		2,512		13,213
Lattice Semiconductor Corp. *		2,286		5,624
Micrel, Inc.		868		6,744
Microsemi Corp. *		4,617		65,146
MKS Instruments, Inc. *		1,332		24,549
Monolithic Power Systems, Inc. *		1,637		36,882
Netlogic Microsystems, Inc. *		7,722		339,073
O2Micro International, Ltd., ADR *		75,483		389,492
OmniVision Technologies, Inc. *		1,840		26,919
Pericom Semiconductor Corp. *		1,429		12,304
PMC-Sierra, Inc. *		62,807		570,288
QLogic Corp. *		4,393		69,453
Rambus, Inc. *		2,822		53,900
Rovi Corp. *		5,752		175,091
Rubicon Technology, Inc. *		684		8,372
Rudolph Technologies, Inc. *		1,083		6,953
Semtech Corp. *		3,471		63,415
Silicon Laboratories, Inc. *		2,415		108,772
Silicon Motion Technology Corp., ADR * (a)		60,285		210,997
Teradyne, Inc. *		6,400		52,800
Tessera Technologies, Inc. *		2,766		69,510
Triquint Semiconductor, Inc. *		57,881		423,689
Ultratech, Inc. *		1,268		13,732
Varian Semiconductor Equipment Associates, Inc. *		4,160		127,171
Verigy, Ltd. *		3,310		35,384
Volterra Semiconductor Corp. *		1,279		22,651
				4,895,530
Software - 4.40%
ACI Worldwide, Inc. *		1,992		27,012
Actuate Corp. *		32,510		182,706
Advent Software, Inc. *		932		36,059
Allscripts-Misys Healthcare Solutions, Inc. *		3,651		54,217
American Reprographics Company *		2,068		18,902
ANSYS, Inc. *		15,023		527,908
ArcSight, Inc. *		902		17,454
AsiaInfo Holdings, Inc. *		14,235		245,127
Blackbaud, Inc.		2,492		47,996
Blackboard, Inc. *		1,711		58,875
China Information Security Technology, Inc. *		1,527		5,879
Commvault Systems, Inc. *		75,349		1,378,133
Compuware Corp. *		4,817		34,731
Concur Technologies, Inc. *		2,345		82,919
Deltek, Inc. *		894		6,428
DemandTec, Inc. *		1,437		12,171
DivX, Inc. *		1,552		8,101
Double-Take Software, Inc. *		934		8,201
Ebix, Inc. *		8,587		423,854
Eclipsys Corp. *		3,195		53,548
Epicor Software Corp. *		2,946		18,560
EPIQ Systems, Inc. *		33,539		502,750
FARO Technologies, Inc. *		905		15,394
Genpact, Ltd. *		4,277		54,018
Innerworkings, Inc. *		1,551		8,903
Interactive Intelligence, Inc. *		724		12,467
Manhattan Associates, Inc. *		1,310		23,357
ManTech International Corp. *		1,246		65,839
MedAssets, Inc. *		1,579		35,259
MicroStrategy, Inc., Class A *		519		32,048
Monotype Imaging Holdings, Inc. *		635		5,201
MSCI, Inc. *		5,694		167,517
NetSuite, Inc. *		879		12,051
Omnicell, Inc. *		1,706		18,732
Omniture, Inc. *		3,904		55,866
Open Text Corp. *		10,060		353,810
OpenTV Corp., Class A *		4,945		6,330
Opnet Technologies, Inc.		759		7,180
Pegasystems, Inc.		13,317		407,900
Progress Software Corp. *		1,129		25,154
PROS Holdings, Inc. *		1,023		8,266
Quality Systems, Inc.		1,049		56,478
Quest Software, Inc. *		3,766		62,101
Riverbed Technology, Inc. *		3,117		60,096
Smith Micro Software, Inc. *		32,355		373,700
Solera Holdings, Inc. *		22,235		585,670
SPSS, Inc. *		1,042		51,892
Sybase, Inc. *		10,514		366,413
Synchronoss Technologies, Inc. *		1,136		12,076
Taleo Corp. *		1,510		27,316
Tradestation Group, Inc. *		683		4,897
Ultimate Software Group, Inc. *		8,534		225,042
VeriFone Holdings, Inc. *		4,324		49,899
Websense, Inc. *		1,637		24,817
				6,967,220

The accompanying notes are an integral part of the financial statements.

290

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Steel - 0.25%
AK Steel Holding Corp.		14,950	$	303,784
Northwest Pipe Company *		182		6,048
Schnitzer Steel Industries, Inc.		1,242		67,081
Worthington Industries, Inc.		1,796		23,653
				400,566
Telecommunications Equipment &
Services - 8.09%
ADC Telecommunications, Inc. *		1,910		16,254
ADTRAN, Inc.		18,137		412,435
Airvana, Inc. *		1,417		9,196
Alaska Communications Systems Group, Inc.		2,513		20,029
Amdocs, Ltd. *		72,500		1,763,200
American Tower Corp., Class A *		60,100		1,902,165
Applied Signal Technology, Inc.		11,289		287,531
Arris Group, Inc. *		12,474		165,405
Aruba Networks, Inc. *		3,433		31,275
Atheros Communications, Inc. *		18,473		510,594
Cbeyond Communications, Inc. *		1,305		18,740
Centennial Communications Corp., Class A *		5,015		37,964
Ciena Corp. *		3,352		44,917
CommScope, Inc. *		63,548		1,713,254
Comtech Telecommunications Corp. *		12,850		437,157
CPI International, Inc. *		420		3,940
FiberTower Corp. *		3,363		2,186
Finisar Corp. *		23,041		20,276
General Communication, Inc., Class A *		1,839		12,266
GeoEye, Inc. *		21,634		547,772
Global Crossing, Ltd. *		1,709		19,209
Globecomm Systems, Inc. *		36,296		274,761
Harmonic, Inc. *		5,441		35,911
Hughes Communications, Inc. *		548		14,253
ICO Global Communications Holdings, Ltd. *		6,961		4,873
Infinera Corp. *		4,884		34,188
InterDigital, Inc. *		2,486		52,107
J2 Global Communications, Inc. *		2,487		53,147
JDS Uniphase Corp. *		4,204		28,881
Mastec, Inc. *		101,280		958,109
NeuStar, Inc., Class A *		4,111		95,293
Neutral Tandem, Inc. *		1,306		32,663
NICE Systems, Ltd., ADR *		17,907		501,754
Oplink Communications, Inc. *		24,724		343,169
OpNext, Inc. *		1,289		3,377
PAETEC Holding Corp. *		7,175		20,090
Polycom, Inc. *		4,768		112,477
Powerwave Technologies, Inc. *		3,724		4,618
Premiere Global Services, Inc. *		182,324		1,706,553
RCN Corp. *		2,076		19,452
SAVVIS, Inc. *		2,160		36,634
Shenandoah Telecommunications Company		1,277		22,028
ShoreTel, Inc. *		2,515		15,844
Sonus Networks, Inc. *		5,406		11,407
Starent Networks Corp. *		14,369		290,829
Tekelec, Inc. *		1,704		26,531
TW Telecom, Inc. *		8,481		97,107
Viasat, Inc. *		1,592		38,574
Vonage Holdings Corp. * (a)		4,017		5,744
				12,816,139
Tobacco - 0.01%
Alliance One International, Inc. *		4,783		18,319
Transportation - 0.42%
Excel Maritime Carriers, Ltd. (a)		31,200		211,536
Genco Shipping & Trading, Ltd.		9,596		185,874
Kirby Corp. *		2,906		107,667
Marten Transport, Ltd. *		4,379		74,268
Patriot Transportation Holding, Inc. *		95		7,316
Saia, Inc. *		764		13,523
UTI Worldwide, Inc. *		5,406		69,467
				669,651
Transport-Marine - 0.01%
American Commercial Lines, Inc. *		537		11,492
Travel Services - 0.02%
Ambassadors Group, Inc.		969		15,291
Interval Leisure Group, Inc. *		2,244		23,539
				38,830
Trucking & Freight - 2.97%
Arkansas Best Corp.		12,325		393,168
Celadon Group, Inc. *		40,403		395,545
Forward Air Corp.		1,646		37,990
Heartland Express, Inc.		3,353		47,478
Hub Group, Inc., Class A *		52,446		1,150,141
Knight Transportation, Inc.		3,544		58,441
Landstar Systems, Inc.		2,920		101,820
Navistar International Corp. *		56,800		2,456,032
Old Dominion Freight Lines, Inc. *		1,591		56,926
YRC Worldwide, Inc. * (a)		1,676		3,737
				4,701,278
Utility Service - 0.03%
Cal Dive International, Inc. *		3,952		41,219
Consolidated Water Company, Ltd.		781		14,371
				55,590
Water Treatment Systems - 0.01%
Energy Recovery, Inc. *		1,838		9,668
TOTAL COMMON STOCKS (Cost $126,741,973)			$	151,954,787
INVESTMENT COMPANIES - 0.93%
Investment Companies - 0.93%
iShares Russell 2000 Growth Index Fund (a)		24,000		1,480,320
TOTAL INVESTMENT COMPANIES (Cost $1,451,292)			$	1,480,320
SHORT TERM INVESTMENTS - 6.60%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,044,197	$	10,453,767
TOTAL SHORT TERM INVESTMENTS (Cost $10,452,324)			$	10,453,767

The accompanying notes are an integral part of the financial statements.

291

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Smaller Company Growth Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 2.78%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $4,403,009 on 09/01/2009, collateralized by $350,000 U.S. Treasury Bonds, 3.50% due 02/15/2039 (valued at $310,188, including interest) and $3,955,000 Federal Home Loan Bank, 4.375% due 09/17/2010 (valued at $4,191,905, including interest)	$	4,403,000	$	4,403,000
TOTAL REPURCHASE AGREEMENTS (Cost $4,403,000)			$	4,403,000
Total Investments (Smaller Company Growth Fund) (Cost $143,048,589) - 106.20%			$	168,291,874
Other assets and liabilities, net - (6.20)%				(9,817,973	)
TOTAL NET ASSETS - 100.00%			$	158,473,901

Spectrum Income Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 16.19%
Aerospace - 0.22%
Boeing Company		29,700	$	1,475,199
Lockheed Martin Corp.		7,300		547,354
				2,022,553
Air Travel - 0.08%
Southwest Airlines Company		90,500		740,290
Aluminum - 0.06%
Alcoa, Inc. (a)		47,900		577,195
Auto Parts - 0.07%
Genuine Parts Company		18,100		670,424
Banking - 1.23%
Allied Irish Banks PLC *		67,013		268,342
Bank of America Corp.		258,826		4,552,749
Bank of New York Mellon Corp.		64,000		1,895,040
KeyCorp		91,900		612,054
Marshall & Ilsley Corp.		31,700		225,704
SunTrust Banks, Inc.		49,800		1,163,826
U.S. Bancorp		104,100		2,354,742
				11,072,457
Biotechnology - 0.12%
Amgen, Inc. *		17,300		1,033,502
Broadcasting - 0.03%
CBS Corp., Class B		23,850		246,848
Building Materials & Construction - 0.13%
Masco Corp.		77,500		1,122,200
Business Services - 0.21%
Accenture, Ltd., Class A		9,100		300,300
Computer Sciences Corp. *		27,200		1,328,720
H & R Block, Inc.		13,800		238,464
				1,867,484
Cable & Television - 0.11%
Cablevision Systems Corp., Class A		43,300		967,322
Cellular Communications - 0.07%
Vodafone Group PLC		298,400		643,231
Chemicals - 0.18%
E.I. Du Pont de Nemours & Company		40,900		1,305,937
Huntsman Corp.		34,725		298,288
				1,604,225
Coal - 0.05%
CONSOL Energy, Inc.		12,700		475,107
Computers & Business Equipment - 0.19%
Cisco Systems, Inc. *		29,400		635,040
Dell, Inc. *		67,900		1,074,857
				1,709,897
Construction Materials - 0.18%
USG Corp. *		27,500		408,650
Vulcan Materials Company (a)		24,000		1,200,960
				1,609,610
Cosmetics & Toiletries - 0.25%
International Flavors & Fragrances, Inc.		31,700		1,129,154
Kimberly-Clark Corp.		18,100		1,094,326
				2,223,480
Crude Petroleum & Natural Gas - 0.08%
Sunoco, Inc.		26,400		710,160
Electrical Equipment - 0.11%
Cooper Industries, Ltd., Class A		22,600		728,850
General Cable Corp. *		6,650		234,612
				963,462
Electrical Utilities - 0.66%
CenterPoint Energy, Inc.		18,200		225,680
Constellation Energy Group, Inc.		22,600		715,290
Entergy Corp.		15,400		1,216,600
FirstEnergy Corp.		14,400		649,872
PG&E Corp.		22,600		917,334
Pinnacle West Capital Corp.		22,600		743,766
Teco Energy, Inc.		24,100		321,012
Xcel Energy, Inc.		60,070		1,186,382
				5,975,936
Electronics - 0.05%
Harman International Industries, Inc.		15,800		473,842
Energy - 0.30%
Duke Energy Corp.		70,190		1,087,243
NRG Energy, Inc. *		13,800		370,530
Progress Energy, Inc.		31,550		1,247,172
				2,704,945
Financial Services - 1.82%
American Express Company		87,600		2,962,632
Capital One Financial Corp.		30,800		1,148,532
Federal National Mortgage Association * (a)		40,214		77,613
Goldman Sachs Group, Inc.		8,200		1,356,772
JPMorgan Chase & Company		136,950		5,951,847
Legg Mason, Inc.		18,200		523,432

The accompanying notes are an integral part of the financial statements.

292

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Financial Services (continued)
NYSE Euronext		9,200	$	260,728
SLM Corp. *		86,900		773,410
UBS AG - Swiss Exchange *		45,551		842,277
Wells Fargo & Company		90,500		2,490,560
				16,387,803
Food & Beverages - 0.61%
Anheuser-Busch InBev NV		15,700		678,182
B&G Foods, Inc.		34,450		600,463
Hershey Company		61,100		2,396,953
Kraft Foods, Inc., Class A		43,000		1,219,050
McCormick & Company, Inc.		18,100		589,517
				5,484,165
Forest Products - 0.06%
Weyerhaeuser Company		14,400		538,416
Gas & Pipeline Utilities - 0.21%
NiSource, Inc.		92,000		1,215,320
Spectra Energy Corp.		34,000		639,880
Williams Companies, Inc.		270		4,439
				1,859,639
Healthcare Products - 0.15%
Johnson & Johnson		22,800		1,378,032
Healthcare Services - 0.08%
WellPoint, Inc. *		13,600		718,760
Homebuilders - 0.04%
D.R. Horton, Inc.		27,200		364,752
Hotels & Restaurants - 0.10%
Marriott International, Inc., Class A		38,788		927,044
Household Appliances - 0.25%
Black & Decker Corp.		11,300		498,556
Whirlpool Corp. (a)		27,300		1,752,933
				2,251,489
Household Products - 0.20%
Fortune Brands, Inc.		45,300		1,803,393
Industrial Machinery - 0.19%
Deere & Company		32,000		1,395,200
Pall Corp.		9,200		273,516
				1,668,716
Industrials - 0.38%
General Electric Company		245,900		3,418,010
Insurance - 0.57%
Chubb Corp.		13,600		671,704
Lincoln National Corp.		49,800		1,256,952
Marsh & McLennan Companies, Inc.		72,400		1,704,296
Progressive Corp. *		40,700		672,364
The Travelers Companies, Inc.		15,800		796,636
				5,101,952
International Oil - 1.81%
Anadarko Petroleum Corp.		27,200		1,438,064
BP PLC, SADR		35,100		1,805,895
Chevron Corp.		54,800		3,832,712
ConocoPhillips Company		12,800		576,384
Exxon Mobil Corp.		54,800		3,789,420
Murphy Oil Corp.		34,300		1,955,100
Royal Dutch Shell PLC, ADR		52,100		2,889,987
				16,287,562
Internet Retail - 0.11%
eBay, Inc. *		45,300		1,002,942
Internet Software - 0.03%
Electronic Arts, Inc. *		16,100		293,342
Leisure Time - 0.22%
Lakes Gaming, Inc. *		22,900		72,364
MGM Mirage, Inc. * (a)		46,600		394,702
Walt Disney Company		58,800		1,531,152
				1,998,218
Manufacturing - 0.74%
3M Company		34,300		2,473,030
Eaton Corp.		9,100		490,945
Harley-Davidson, Inc.		31,700		760,166
Honeywell International, Inc.		29,400		1,080,744
Illinois Tool Works, Inc.		45,300		1,894,446
				6,699,331
Mining - 0.02%
Freeport-McMoRan Copper & Gold, Inc., Class B		3,475		218,856
Multimedia - 0.23%
Time Warner, Inc.		73,433		2,049,515
Office Furnishings & Supplies - 0.10%
Avery Dennison Corp.		29,400		908,460
Paper - 0.37%
International Paper Company		87,800		2,015,010
MeadWestvaco Corp.		40,500		888,975
WPP PLC, SADR		53,100		446,357
				3,350,342
Petroleum Services - 0.27%
BJ Services Company		22,600		362,956
Complete Production Services, Inc. *		43,500		391,500
Schlumberger, Ltd.		29,700		1,669,140
				2,423,596
Pharmaceuticals - 0.69%
Bristol-Myers Squibb Company		54,300		1,201,659
Eli Lilly & Company (a)		36,200		1,211,252
Merck & Company, Inc. (a)		51,200		1,660,416
Pfizer, Inc.		4,815		80,410
Wyeth		43,500		2,081,475
				6,235,212
Publishing - 0.26%
McGraw-Hill Companies, Inc.		53,300		1,791,413
The New York Times Company, Class A (a)		67,900		516,719
				2,308,132
Railroads & Equipment - 0.02%
Norfolk Southern Corp.		4,800		220,176

The accompanying notes are an integral part of the financial statements.

293

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Real Estate - 0.00%
Weingarten Realty Investors, REIT		1,271	$	25,242
Retail Trade - 0.65%
Bed Bath & Beyond, Inc. * (a)		52,300		1,907,904
Home Depot, Inc. (a)		89,100		2,431,539
Macy’s, Inc.		33,600		521,472
Tiffany & Company		27,200		989,536
				5,850,451
Semiconductors - 0.31%
Analog Devices, Inc.		47,500		1,341,875
Applied Materials, Inc.		38,500		507,430
Intel Corp.		45,000		914,400
				2,763,705
Software - 0.24%
Microsoft Corp.		86,100		2,122,365
Steel - 0.16%
Nucor Corp.		32,900		1,465,366
Telephone - 0.65%
AT&T, Inc.		111,920		2,915,516
Qwest Communications International, Inc. (a)		226,300		812,417
Sprint Nextel Corp. *		187,575		686,524
Verizon Communications, Inc.		47,300		1,468,192
				5,882,649
Toys, Amusements & Sporting Goods - 0.11%
Mattel, Inc.		55,200		993,048
Trucking & Freight - 0.16%
United Parcel Service, Inc., Class B (a)		27,200		1,454,112
TOTAL COMMON STOCKS (Cost $163,661,466)			$	145,868,963
PREFERRED STOCKS - 0.27%
Broadcasting - 0.01%
Spanish Broadcasting System, Series B, 10.75%		308		77,000
Financial Services - 0.00%
Federal Home Loan Mortgage Corp., Series Z, 8.375% *		7,400		15,836
Federal National Mortgage Association, Series S, 8.25% *		6,125		12,250
				28,086
Telecommunications Equipment &
Services - 0.26%
Crown Castle International Corp., 6.25%		12,250		616,787
Lucent Technologies Capital Trust I, 7.75%		2,300		1,679,000
				2,295,787
TOTAL PREFERRED STOCKS (Cost $2,836,727)			$	2,400,873
TERM LOANS - 1.97%
Aerospace - 0.03%
BE Aerospace, Inc.
5.75% due 07/28/2014 (b)		247,500		246,417
Vought Aircraft Industries, Inc.
1.00% due 12/22/2011 (b)		577		572
				246,989
Auto Parts - 0.03%
Goodyear Tire & Rubber Company
4.54% due 04/30/2014 (b)	$	250,000	$	230,625
Automobiles - 0.20%
Ford Motor Company
5.46% due 12/15/2013 (b)		1,481,052		1,283,332
General Motors Corp.
2.375% due 11/29/2013 (b)		500,000		491,250
				1,774,582
Biotechnology - 0.02%
Invitrogen Corp.
5.25% due 09/15/2015 (b)		198,125		200,106
Business Services - 0.02%
First Data Corp.
3.34% due 09/24/2014 (b)		248,106		206,703
Cable & Television - 0.12%
CSC Holdings, Inc.
8.125% due 02/24/2012 (b)		418,919		407,399
Mediacom Broadband LLC
6.50% due 01/31/2015 (b)		246,256		246,564
Univision Communications, Inc.
7.60% due 09/29/2014 (b)		250,000		195,714
Weather Channel Company
7.25% due 07/25/2015 (b)		247,503		248,988
				1,098,665
Chemicals - 0.02%
Hexion Specialty Chemicals
2.718% due 05/05/2013 (b)		250,000		189,930
Commercial Services - 0.05%
Aramark Corp., Tranche B
7.485% due 01/26/2017 (b)		440,892		412,576
Computers & Business Equipment - 0.09%
Palm, Inc.
8.3775% due 04/24/2014 (b)		982,500		840,037
Containers & Glass - 0.05%
Graham Packaging Company
6.75% due 04/05/2014 (b)		445,534		445,534
Electrical Utilities - 0.05%
Calpine Corp.
5.725% due 03/29/2014 (b)		246,867		226,539
Texas Competitive Electric LLC
3.776% due 10/10/2014 (b)		246,859		187,613
				414,152
Electronics - 0.11%
Dresser, Inc.
6.023% due 05/04/2015 (b)		1,250,000		1,039,063
Energy - 0.05%
Hercules Offshore, Inc.
7.36% due 07/11/2013 (b)		249,364		229,415
Mirant North America LLC
4.1313% due 01/03/2013 (b)		224,241		214,230
				443,645

The accompanying notes are an integral part of the financial statements.

294

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
TERM LOANS (continued)
Financial Services - 0.36%
CCM Merger, Inc.
8.50% due 07/21/2012 (b)	$	500,000	$	466,666
Navistar Financial Corp.
2.838% due 07/01/2010 (b)		750,000		719,378
Nuveen Investments, Inc.
3.496% due 11/09/2014 (b)		1,133,809		920,276
Pinnacle Foods Finance LLC
9.25% due 04/01/2015 (b)		1,236,757		1,140,908
				3,247,228
Food & Beverages - 0.05%
Wrigley WM Jr. Company
6.50% due 10/06/2014 (b)		487,500		492,982
Healthcare Products - 0.05%
Bausch & Lomb, Inc.
9.00% due 04/30/2015 (b)		248,491		235,096
Boston Scientific Corp.
2.354% due 04/21/2011 (b)		185,841		179,452
				414,548
Healthcare Services - 0.10%
DaVita, Inc.
1.77% due 10/05/2011 (b)		206,731		175,721
Healthsouth Corp.
10.00% due 06/10/2013 (b)		219,378		212,170
Iasis Healthcare Corp.
10.605% due 06/16/2011 (b)		598,577		496,819
				884,710
Hotels & Restaurants - 0.04%
OSI Restaurant Partners, Inc.
2.536% due 06/14/2014 (b)		500,000		395,834
Insurance - 0.02%
HUB International Holdings, Inc.
2.761% due 06/13/2014 (b)		246,879		225,585
Leisure Time - 0.08%
Harrah’s Operating Company, Inc.
3.504% due 01/28/2015 (b)		663,048		533,547
Town Sports International, Inc.
7.125% due 03/01/2014 (b)		244,375		207,719
				741,266
Medical-Hospitals - 0.12%
Community Health Systems, Inc.
2.607% due 07/25/2014 (b)		245,486		228,686
HCA, Inc.
4.1963% due 11/18/2012 (b)		890,279		831,174
				1,059,860
Publishing - 0.02%
Local Insight Regatta Holdings, Inc.
7.75% due 04/23/2015		250,000		180,000
Retail - 0.05%
Michaels Stores, Inc.
8.00% due 10/31/2013 (b)		249,359		219,981
Supervalu, Inc.
1.136% due 06/20/2011 (b)		222,222		215,139
				435,120
Retail Trade - 0.02%
Dollar Thrifty
3.114% due 06/15/2013 (b)		250,000		187,500
Software - 0.03%
Infor Global Solutions
6.511% due 03/15/2014 (b)		500,000		278,125
Telecommunications Equipment &
Services - 0.19%
Fairpoint Communications, Inc.
5.283% due 03/31/2014 (b)		737,363		559,167
Global Crossing, Ltd.
6.71% due 05/09/2012 (b)		250,000		232,031
Trilogy International Partners
8.86% due 06/27/2012 (b)		500,000		385,000
West Corp.
2.644% due 10/24/2013 (b)		496,193		498,984
				1,675,182
TOTAL TERM LOANS (Cost $16,761,304)			$	17,760,547
U.S. TREASURY OBLIGATIONS - 4.54%
Treasury Inflation Protected
Securities (d) - 0.23%
1.625% due 01/15/2018		66,905		66,173
2.50% due 01/15/2029		45,196		47,328
1.75% due 01/15/2028		149,249		139,128
1.375% due 07/15/2018		764,977		740,833
2.00% due 07/15/2014		1,000,974		1,021,305
				2,014,767
U.S. Treasury Bonds - 0.61%
2.625% due 04/30/2016		1,075,000		1,053,248
3.50% due 02/15/2039		1,030,000		909,941
4.75% due 02/15/2037		1,235,000		1,349,817
6.125% due 08/15/2029 ***		915,000		1,158,762
7.125% due 02/15/2023		410,000		543,122
7.25% due 08/15/2022		350,000		466,484
				5,481,374
U.S. Treasury Notes - 3.69%
1.125% due 01/15/2012		680,000		678,459
1.375% due 04/15/2012		9,000,000		9,014,769
1.75% due 08/15/2012		5,475,000		5,518,203
2.00% due 09/30/2010		725,000		736,951
2.25% due 05/31/2014		7,220,000		7,202,513
2.625% due 07/31/2014		7,090,000		7,174,194
4.00% due 08/15/2018		790,000		827,278
4.50% due 04/30/2012		1,930,000		2,089,677
				33,242,044
U.S. Treasury Strips - 0.01%
0.01% due 05/15/2021		180,000		110,418
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $38,792,346)			$	40,848,603
U.S. GOVERNMENT AGENCY OBLIGATIONS - 18.30%
Federal Home Loan Bank - 0.07%
5.79% due 10/01/2037 (b)		632,593		667,368

The accompanying notes are an integral part of the financial statements.

295

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp. - 2.15%
3.666% due 07/01/2035 (b)		$	34,457	$	35,646
4.125% due 10/18/2010			1,750,000		1,819,634
4.50% due 11/01/2018 to 06/01/2019			659,066		691,607
4.623% due 06/01/2038 (b)			190,331		198,070
4.628% due 07/01/2035 (b)			97,248		101,355
4.693% due 07/01/2038 (b)			344,707		358,521
4.723% due 02/01/2035 (b)			149,336		154,888
5.00% due 10/01/2018 to 12/01/2035			4,849,523		5,021,173
5.06% due 11/01/2035 to 03/01/2036 (b)			103,860		108,746
5.144% due 01/01/2036 (b)			754,703		788,708
5.158% due 09/01/2035 (b)			129,835		135,919
5.265% due 09/01/2032 (b)			5,920		6,093
5.313% due 02/01/2037 (b)			176,828		185,453
5.323% due 02/01/2037 (b)			347,142		364,277
5.331% due 01/01/2036 (b)			13,981		14,681
5.35% due 04/01/2037 to 05/01/2037 (b)			579,342		608,079
5.412% due 02/01/2038 (b)			398,351		419,155
5.438% due 02/01/2037 (b)			830,319		871,986
5.50% due 03/01/2018 to 12/01/2034			546,903		578,427
5.512% due 10/01/2036 (b)			488,136		509,835
5.898% due 02/01/2037 (b)			205,222		216,119
5.987% due 12/01/2036 (b)			566,791		600,118
6.00% due 11/01/2011 to 08/01/2038			2,637,704		2,799,941
6.001% due 11/01/2036 to 01/01/2037 (b)			584,728		618,287
6.02% due 10/01/2036 (b)			523,806		553,672
6.11% due 10/01/2036 (b)			401,850		426,203
6.205% due 08/01/2036 (b)			493,433		523,964
6.50% due 05/01/2017 to 01/01/2036			532,654		571,273
7.00% due 02/01/2024 to 06/01/2032			36,732		40,137
7.50% due 05/01/2024 to 06/01/2024			3,455		3,779
10.50% due 05/01/2019			163		189
					19,325,935
Federal National Mortgage
Association - 6.23%
2.70% due 07/01/2027 (b)			1,387		1,413
3.483% due 10/01/2033 (b)			86,160		87,218
3.875% due 07/12/2013			1,795,000		1,912,946
4.50% due 05/01/2019 to 06/01/2039			7,153,401		7,302,148
4.591% due 11/01/2035 (b)			142,721		146,350
4.605% due 07/01/2035 (b)			101,381		104,855
4.786% due 09/01/2035 (b)			463,074		484,591
4.832% due 04/01/2038 (b)			218,870		228,917
4.835% due 05/01/2038 (b)			117,635		122,998
4.858% due 05/01/2038 (b)			397,883		416,521
4.886% due 05/01/2038 (b)			363,056		379,978
4.912% due 08/01/2038 (b)			326,248		341,261
5.00% due 03/01/2018 to 02/01/2036			7,677,797		7,988,149
5.306% due 12/01/2035 (b)			26,660		28,066
5.343% due 12/01/2035 (b)			30,215		31,801
5.423% due 09/01/2037 (b)			197,808		209,222
5.458% due 06/01/2037 (b)			109,130		115,036
5.488% due 01/01/2019 (b)			959		982
5.50% due 07/01/2013 to 08/01/2037			17,457,509		18,316,023
5.515% due 12/01/2035 to 01/01/2037 (b)			266,546		281,368
5.528% due 07/01/2036 (b)			173,588		182,913
5.63% due 12/01/2035 (b)			78,521		82,944
5.799% due 08/01/2037 (b)			242,505		257,151
5.987% due 08/01/2036 (b)			379,768		400,192
6.00% due 03/01/2021 to 09/01/2038			9,280,825		9,845,094
5.998% due 09/01/2036 (b)			230,481		244,742
6.037% due 12/01/2036 (b)			325,247		343,994
6.50% due 06/01/2013 to 04/01/2038			5,314,297		5,716,561
7.00% due 12/01/2029 to 04/01/2037			78,508		85,667
7.125% due 01/15/2030			365,000		481,714
					56,140,815
Government National Mortgage
Association - 9.85%
4.00% due 09/15/2018 to 06/20/2039			904,250		912,523
4.50% due 09/15/2018 to 07/20/2039			7,930,248		8,027,411
5.00% due 02/15/2018 to 06/20/2039			19,700,240		20,415,546
5.50% due 02/15/2029 to 06/20/2039			26,857,863		28,268,548
6.00% due 07/20/2012 to 06/20/2039			20,342,794		21,657,278
6.50% due 12/15/2014 to 08/15/2037			6,985,280		7,540,809
7.00% due 04/15/2017 to 10/20/2036			1,739,956		1,894,481
9.25% due 10/15/2016 to 12/15/2019			3,019		3,395
9.50% due 10/15/2009			4		4
9.75% due 07/15/2017 to 02/15/2021			3,877		4,442
10.25% due 11/15/2020			2,229		2,608
11.75% due 08/15/2013			1,094		1,238
12.00% due 10/15/2010 to 12/15/2012			154		168
12.25% due 03/15/2014 to 07/20/2015			974		1,140
12.50% due 06/15/2010			914		949
12.75% due 12/20/2013 to 11/20/2014			834		979
					88,731,519
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $157,786,797)				$	164,865,637
FOREIGN GOVERNMENT OBLIGATIONS - 11.31%
Argentina - 0.06%
Republic of Argentina
7.00% due 10/03/2015			550,000		343,750
7.875% due 04/11/2011			200,100		178,839
					522,589
Austria - 0.02%
Republic of Austria
6.25% due 07/15/2027	EUR		94,000		167,692
Belgium - 0.09%
Kingdom of Belgium
4.25% due 09/28/2013			197,000		301,595
5.00% due 03/28/2035			322,000		506,969
					808,564
Brazil - 1.06%
Federative Republic of Brazil
5.875% due 01/15/2019		$	275,000		285,037
6.00% due 01/17/2017			205,000		214,811
6.00% due 05/15/2015	BRL		185,000		180,732
7.125% due 01/20/2037		$	1,485,000		1,640,925
8.75% due 02/04/2025			475,000		595,650
8.875% due 10/14/2019			500,000		623,250
10.00% due 01/01/2012	BRL		1,900,000		1,003,723
10.00% due 01/01/2014			6,390,000		3,212,224

The accompanying notes are an integral part of the financial statements.

296

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS (continued)
Brazil (continued)
Federative Republic of Brazil (continued)
10.00% due 01/01/2017	BRL		1,817,000	$	859,467
11.00% due 08/17/2040		$	700,000		923,839
					9,539,658
Canada - 0.17%
Government of Canada
4.25% due 06/01/2018	CAD		51,000		50,213
4.50% due 06/01/2015			111,000		111,006
5.00% due 12/01/2038			90,000		84,882
5.75% due 06/01/2033			331,000		382,424
Province of Ontario
5.00% due 03/08/2014			885,000		881,459
					1,509,984
Colombia - 0.04%
Republic of Colombia
7.375% due 09/18/2037		$	200,000		209,000
7.375% due 09/18/2037			150,000		158,442
					367,442
Denmark - 0.09%
Kingdom of Denmark
5.00% due 11/15/2013	DKK		3,277,000		688,577
7.00% due 11/10/2024			364,000		95,351
					783,928
France - 0.61%
Government of France
3.75% due 01/12/2012	EUR		947,000		1,422,377
4.00% due 04/25/2013			769,000		1,170,304
4.25% due 10/25/2017			146,000		223,683
5.50% due 04/25/2029			312,000		530,102
5.75% due 10/25/2032			990,000		1,757,332
Societe Financement de l’Economie Francaise
3.25% due 01/16/2014			278,000		405,605
					5,509,403
Gabon - 0.07%
Republic of Gabon
8.20% due 12/12/2017		$	500,000		490,750
8.20% due 12/12/2017			100,000		98,150
					588,900
Germany - 1.13%
Federal Republic of Germany
3.50% due 01/04/2016	EUR		206,000		307,787
3.50% due 07/04/2019			2,715,000		3,972,596
3.75% due 01/04/2019			366,000		546,819
4.00% due 01/04/2037			871,000		1,247,641
4.00% due 01/04/2018			375,000		571,861
4.75% due 07/04/2028			150,000		236,901
4.75% due 07/04/2034			287,000		454,653
5.25% due 01/04/2011			1,903,000		2,884,107
					10,222,365
Ghana - 0.09%
Republic of Ghana
8.50% due 10/04/2017		$	850,000		786,250
Greece - 0.34%
Republic of Greece
3.70% due 07/20/2015	EUR		115,000	$	166,496
4.60% due 05/20/2013			395,000		599,789
5.25% due 05/18/2012			720,000		1,106,540
6.00% due 05/19/2010			810,000		1,202,938
					3,075,763
Grenada - 0.02%
Government of Grenada
2.50% due 09/15/2025		$	430,000		180,600
Hungary - 0.01%
Republic of Hungary
6.75% due 02/24/2017	HUF		22,240,000		106,288
Indonesia - 0.31%
Republic of Indonesia
6.625% due 02/17/2037		$	100,000		92,427
6.875% due 03/09/2017			100,000		103,272
6.875% due 01/17/2018			950,000		978,500
7.75% due 01/17/2038			300,000		310,428
9.50% due 06/15/2015	IDR		1,500,000,000		146,477
10.375% due 05/04/2014		$	100,000		119,750
11.625% due 03/04/2019			750,000		1,012,500
					2,763,354
Iraq - 0.21%
Republic of Iraq
5.80% due 01/15/2028			2,757,000		1,888,545
Ireland - 0.02%
Republic of Ireland
4.00% due 04/18/2010	EUR		96,000		139,700
Italy - 0.79%
Republic of Italy
4.00% due 02/01/2037			1,000,000		1,247,661
4.25% due 08/01/2014			1,302,000		1,978,390
5.25% due 09/20/2016		$	450,000		480,393
5.25% due 08/01/2017	EUR		1,052,000		1,685,535
5.50% due 11/01/2010			1,036,000		1,562,796
7.25% due 11/01/2026			75,000		140,248
					7,095,023
Jamaica - 0.06%
Government of Jamaica
9.00% due 06/02/2015		$	215,000		206,400
10.625% due 06/20/2017			350,000		336,000
					542,400
Japan - 3.11%
Government of Japan
1.00% due 12/20/2012	JPY		188,500,000		2,066,205
1.10% due 12/10/2016			122,300,000		1,210,251
1.30% due 12/20/2013			330,850,000		3,671,528
1.30% due 03/20/2015			274,600,000		3,043,787
1.40% due 03/21/2011			67,650,000		740,361
1.40% due 03/20/2012			188,400,000		2,081,206
1.40% due 03/20/2018			317,350,000		3,487,907
1.40% due 03/10/2018			131,340,000		1,309,024
1.50% due 06/20/2012			299,600,000		3,324,894
1.70% due 09/20/2016			225,300,000		2,553,653

The accompanying notes are an integral part of the financial statements.

297

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Japan (continued)
Government of Japan (continued)
2.00% due 06/20/2022	JPY		55,200,000	$	607,033
2.00% due 12/20/2033			92,800,000		954,943
2.20% due 06/22/2020			32,050,000		371,458
2.30% due 06/20/2028			41,600,000		465,066
3.75% due 03/20/2025			199,600,000		2,158,183
					28,045,499
Lebanon - 0.01%
Republic of Lebanon
9.00% due 03/20/2017		$	100,000		110,250
Malaysia - 0.07%
Government of Malaysia
3.702% due 02/25/2013	MYR		805,000		233,158
3.70% due 05/15/2013			866,000		250,335
5.625% due 03/15/2016		$	100,000		104,812
					588,305
Mexico - 0.88%
Government of Mexico
5.625% due 01/15/2017			170,000		172,125
5.95% due 03/19/2019			500,000		508,000
5.95% due 03/19/2019			450,000		457,200
8.00% due 12/17/2015	MXN		21,285,000		1,609,335
8.00% due 12/07/2023			1,000,000		71,842
8.00% due 12/19/2013			60,930,000		4,677,570
9.50% due 12/18/2014			750,000		60,986
10.00% due 11/20/2036			4,750,000		392,435
					7,949,493
Netherlands - 0.06%
Kingdom of Netherlands
4.50% due 07/15/2017	EUR		195,000		302,447
5.50% due 01/15/2028			137,000		232,263
					534,710
Pakistan - 0.01%
Islamic Republic of Pakistan
7.125% due 03/31/2016		$	100,000		84,379
Peru - 0.06%
Republic of Peru
6.55% due 03/14/2037			580,000		584,101
Philippines - 0.01%
Republic of Philippines
6.375% due 01/15/2032			125,000		118,750
Poland - 0.04%
Republic of Poland
5.75% due 04/25/2014	PLN		366,000		128,581
6.25% due 10/24/2015			765,000		274,494
					403,075
Portugal - 0.02%
Republic of Portugal
5.15% due 06/15/2011	EUR		118,000		179,819
Russia - 0.43%
Government of Russia
7.50% due 03/31/2030		$	3,812,160		3,907,464
Serbia - 0.15%
Republic of Serbia
3.75% due 11/01/2024		$	1,480,000	$	1,361,600
South Africa - 0.11%
Republic of South Africa
6.50% due 06/02/2014			485,000		523,800
6.875% due 05/27/2019			100,000		107,375
8.00% due 12/21/2018	ZAR		1,060,000		130,142
13.50% due 09/15/2015			1,650,000		264,634
					1,025,951
Spain - 0.19%
Kingdom of Spain
4.00% due 01/31/2010	EUR		46,000		66,869
4.40% due 01/31/2015			578,000		892,374
5.75% due 07/30/2032			452,000		767,281
					1,726,524
Sweden - 0.11%
Kingdom of Sweden
3.75% due 08/12/2017	SEK		3,590,000		523,493
5.125% due 03/01/2017		$	425,000		450,024
					973,517
Turkey - 0.29%
Republic of Turkey
6.875% due 03/17/2036			785,000		752,619
7.00% due 06/05/2020			378,000		392,647
7.00% due 03/11/2019			100,000		104,375
8.00% due 02/14/2034			250,000		272,813
8.00% due 02/14/2034			187,000		204,180
10.00% due 02/15/2012	TRY		976,834		711,120
14.00% due 09/26/2012			261,000		188,116
					2,625,870
Ukraine - 0.03%
Republic of Ukraine
7.65% due 06/11/2013		$	250,000		230,025
United Kingdom - 0.42%
Government of United Kingdom
4.25% due 06/07/2032	GBP		1,746,000		2,950,556
4.50% due 03/07/2013			378,000		661,924
8.75% due 08/25/2017			63,000		142,356
					3,754,836
Venezuela - 0.10%
Republic of Venezuela
8.50% due 10/08/2014		$	196,000		164,640
10.75% due 09/19/2013			724,000		691,130
					855,770
Vietnam - 0.02%
Socialist Republic of Vietnam
6.875% due 01/15/2016			200,000		206,524
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $94,213,450)				$	101,864,910

The accompanying notes are an integral part of the financial statements.

298

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS - 35.40%
Advertising - 0.17%
Interpublic Group Companies, Inc.
10.00% due 07/15/2017 (f)		$	300,000	$	313,500
Lamar Media Corp.
9.75% due 04/01/2014			200,000		212,000
Lamar Media Corp., Series C
6.625% due 08/15/2015			250,000		218,750
Omnicom Group, Inc.
6.25% due 07/15/2019			650,000		689,198
WPP Finance UK
8.00% due 09/15/2014			65,000		71,193
					1,504,641
Aerospace - 0.37%
BE Aerospace, Inc.
8.50% due 07/01/2018			450,000		443,250
GenCorp, Inc.
9.50% due 08/15/2013			750,000		566,250
Lockheed Martin Corp.
4.121% due 03/14/2013			340,000		355,284
Northrop Grumman Corp.
7.125% due 02/15/2011			550,000		588,062
Rockwell Collins, Inc.
5.25% due 07/15/2019			130,000		137,692
Rolls-Royce Group PLC, EMTN
4.50% due 03/16/2011	EUR		53,000		78,461
TransDigm, Inc.
7.75% due 07/15/2014		$	475,000		471,437
United Technologies Corp.
5.40% due 05/01/2035			110,000		112,356
6.125% due 02/01/2019			220,000		246,710
6.35% due 03/01/2011			295,000		314,884
					3,314,386
Agriculture - 0.05%
Bunge, Ltd.
5.90% due 04/01/2017			460,000		440,588
Air Travel - 0.19%
Air Jamaica, Ltd.
9.375% due 07/08/2015			64,286		56,571
Air Jamaica, Ltd., Series REGS
9.375% due 07/08/2015			34,286		30,172
American Airlines Pass Through Trust, Series 01-2
7.858% due 04/01/2013			550,000		525,250
Delta Air Lines, Inc., Series 00A2
7.57% due 11/18/2010			775,000		755,625
Delta Airlines, Inc.
6.821% due 08/10/2022			122,549		108,456
Greater Toronto Airports Authority, MTN
6.25% due 12/13/2012	CAD		47,000		47,579
6.47% due 02/02/2034			40,000		41,018
Southwest Airlines Company
6.50% due 03/01/2012		$	160,000		168,165
					1,732,836
Airlines - 0.02%
Continental Airlines, Inc.
9.00% due 07/08/2016			190,000		195,225
Aluminum - 0.08%
Novelis, Inc.
7.25% due 02/15/2015		$	325,000	$	263,250
11.50% due 02/15/2015 (f)			500,000		483,750
					747,000
Apparel & Textiles - 0.08%
INVISTA
9.25% due 05/01/2012 (f)			725,000		711,406
Auto Parts - 0.46%
Affinia Group, Inc.
9.00% due 11/30/2014			100,000		88,125
10.75% due 08/15/2016 (f)			100,000		103,250
Allison Transmission, Inc., PIK
11.25% due 11/01/2015 (f)			1,050,000		882,000
ArvinMeritor, Inc.
8.75% due 03/01/2012			375,000		320,625
Commercial Vehicles Group, Inc.
11.00% due 02/15/2013 (f)			303,000		250,005
Goodyear Tire & Rubber Company
8.625% due 12/01/2011			613,000		619,130
10.50% due 05/15/2016			1,125,000		1,200,937
Tenneco Automotive, Inc.
8.625% due 11/15/2014			125,000		110,000
Tenneco, Inc.
8.125% due 11/15/2015			275,000		250,938
TRW Automotive, Inc.
7.00% due 03/15/2014 (f)			100,000		87,000
United Components, Inc.
9.375% due 06/15/2013			250,000		193,750
					4,105,760
Auto Services - 0.34%
ERAC USA Finance Company
5.60% due 05/01/2015 (f)			240,000		232,015
7.95% due 12/15/2009 (f)			115,000		115,903
Hertz Corp.
10.50% due 01/01/2016			475,000		467,875
KAR Holdings, Inc.
4.4831% due 05/01/2014 (b)			250,000		206,250
10.00% due 05/01/2015			1,225,000		1,127,000
RSC Equipment Rental, Inc.
10.00% due 07/15/2017 (f)			325,000		339,625
United Rentals North America, Inc.
10.875% due 06/15/2016 (f)			525,000		535,500
					3,024,168
Automobiles - 0.11%
DaimlerChrysler N.A. Holding Corp.
6.50% due 11/15/2013			520,000		553,828
7.20% due 09/01/2009			160,000		160,000
DaimlerChrysler N.A. Holding Corp., EMTN
4.375% due 03/21/2013	EUR		100,000		146,126
Fiat Finance & Trade, Ltd.
6.625% due 02/15/2013			55,000		77,271
Volvo Treasury AB, EMTN
9.875% due 02/27/2014			50,000		80,522
					1,017,747

The accompanying notes are an integral part of the financial statements.

299

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking - 2.18%
American Express Centurion Bank
5.55% due 10/17/2012		$	100,000	$	103,970
ATF Bank
9.00% due 05/11/2016			150,000		124,500
9.25% due 04/12/2012			50,000		45,250
Australia & New Zealand Banking Group,
Ltd., EMTN
4.45% until 02/05/2010, then
variable due 02/05/2015	EUR		84,000		118,329
4.375% due 05/24/2012			95,000		140,807
BAC Capital Trust VI
5.625% due 03/08/2035		$	445,000		304,274
Banca Monte dei Paschi di Siena SpA, EMTN
4.50% until 09/24/2010, then
variable due 09/24/2015	EUR		75,000		107,754
Banco Nacional de Desenvolvimento Economico e
Social
6.369% due 06/16/2018		$	290,000		298,700
Bank of America Corp.
5.65% due 05/01/2018			1,260,000		1,218,348
5.75% due 08/15/2016			210,000		200,774
6.50% due 08/01/2016			550,000		566,769
7.375% due 05/15/2014			250,000		274,099
Bank of America Corp., EMTN
4.00% until 03/28/2013, then
variable due 03/28/2017	EUR		100,000		119,284
4.625% due 02/18/2014			65,000		93,317
5.25% due 11/09/2016	GBP		100,000		147,152
Bank of America Corp., MTN
4.75% until 05/23/2012, then
variable due 05/23/2017	EUR		50,000		61,761
Bank of Ireland
6.45% due 02/10/2010			49,000		71,207
Bank of Montreal
5.20% until 06/21/2012, then
variable due 06/21/2017	CAD		49,000		47,480
Bank of New York Mellon Corp.
4.30% due 05/15/2014		$	295,000		310,370
Bank of New York Mellon Corp., MTN
4.50% due 04/01/2013			240,000		253,549
Bank of Nova Scotia
8.30% due 09/27/2013	CAD		97,000		105,283
Bank One Corp.
5.25% due 01/30/2013		$	200,000		211,377
7.875% due 08/01/2010			310,000		327,838
Banque du Liban, EMTN
10.00% due 04/25/2015			100,000		113,000
Barclays Bank PLC
5.20% due 07/10/2014			325,000		341,175
6.75% due 05/22/2019			280,000		306,798
7.40% due 12/15/2009			150,000		152,120
Barclays Bank PLC, EMTN
4.875% due 03/31/2013	EUR		30,000		44,039
5.75% due 03/08/2011			46,000		68,499
BB&T Capital Trust II
6.75% due 06/07/2036		$	180,000		148,050
BB&T Corp.
5.70% due 04/30/2014			1,030,000		1,101,952
BNP Paribas, EMTN
5.25% due 12/17/2012	EUR		50,000	$	75,970
Credit Agricole SA, EMTN
5.971% due 01/02/2018			100,000		156,293
Credit Agricole SA, Series TSDI
5.00% until 06/20/2018, then
variable due 06/20/2049	GBP		125,000		168,900
Credit Suisse Group Finance Guernsey, Ltd.
6.375% due 06/07/2013	EUR		116,000		177,478
Deutsche Bank AG
5.125% due 01/31/2013			35,000		52,362
Deutsche Bank AG, EMTN
4.50% due 03/07/2011			100,000		148,551
4.875% due 09/24/2012			50,000		75,841
Deutsche Genossenschafts-Hypothekenbank AG,
EMTN
4.00% due 10/31/2016			800,000		1,203,660
DnB NOR Bank ASA, EMTN
4.75% due 03/28/2011			75,000		111,436
Eurohypo AG
4.50% due 01/21/2013 (f)			342,000		521,446
Fifth Third Bancorp
6.25% due 05/01/2013		$	275,000		279,826
8.25% due 03/01/2038			150,000		133,254
Fortis Bank SA/NV, EMTN
5.757% due 10/04/2017	EUR		75,000		113,465
HBOS PLC
6.00% due 11/01/2033 (f)		$	420,000		283,540
HBOS PLC, EMTN
4.375% until 10/30/2014, then variable due 10/30/2019	EUR		59,000		67,399
HSBC Bank PLC, EMTN
4.25% until 03/18/2011, then variable
due 03/18/2016			21,000		29,993
HSBC Bank USA, Inc.
4.625% due 04/01/2014		$	100,000		102,308
HSBC Holdings PLC
3.625% until 06/29/2015, then
variable due 06/29/2020	EUR		75,000		99,470
6.50% due 05/02/2036		$	175,000		180,469
9.875% due 04/08/2018	GBP		60,000		111,333
HSBK Europe BV
7.25% due 05/03/2017		$	100,000		75,000
7.75% due 05/13/2013			240,000		203,491
9.25% due 10/16/2013			200,000		180,100
Hypothekenbank in Essen AG
3.875% due 11/21/2013	EUR		421,000		629,596
Independence Community Bank Corp.
2.4169% due 04/01/2014 (b)		$	15,000		13,252
ING Bank NV, EMTN
5.50% due 01/04/2012	EUR		71,000		105,616
Intesa Sanpaolo SpA, EMTN
4.375% until 06/26/2013, then variable due 06/26/2018			50,000		70,031
Intesabci Capital Trust
6.988% until 07/12/2011, then variable due 07/29/2049			55,000		68,598
Kreditanstalt fuer Wiederaufbau
4.70% due 06/02/2037	CAD		245,000		193,859

The accompanying notes are an integral part of the financial statements.

300

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
Kreditanstalt fuer Wiederaufbau, EMTN
7.375% due 01/27/2010	NGN		50,000,000	$	311,439
Kreditanstalt fuer Wiederaufbau, Series EXCH
5.50% due 12/07/2015	GBP		455,000		820,935
MPS Capital Trust I
7.99% until 02/07/2011, then variable due 12/29/2049	EUR		35,000		42,650
National Australia Bank, Ltd., EMTN
4.50% until 06/23/2011, then variable due 06/23/2016			100,000		142,563
NCNB Corp.
9.375% due 09/15/2009		$	275,000		275,677
Northern Trust Company, BKNT
4.60% due 02/01/2013			120,000		126,644
Northern Trust Corp.
5.30% due 08/29/2011			144,000		153,926
5.50% due 08/15/2013			215,000		234,521
PNC Funding Corp.
7.50% due 11/01/2009			190,000		191,656
Rabobank Nederland, EMTN
3.125% due 07/19/2010	EUR		75,000		108,905
Royal Bank of Canada
5.00% due 01/20/2014	CAD		99,000		97,482
5.75% due 07/25/2011	EUR		50,000		76,596
Royal Bank of Scotland Group PLC, EMTN
5.25% due 05/15/2013			60,000		88,904
Royal Bank of Scotland PLC, EMTN
6.00% until 09/08/2014, then variable due 06/29/2049	GBP		47,000		49,734
6.00% due 05/10/2013	EUR		40,000		58,374
RSHB Capital SA for OJSC Russian Agricultural Bank
6.299% due 05/15/2017		$	500,000		446,250
Sanpaolo IMI SpA, EMTN
3.75% until 06/09/2010, then variable due 06/09/2015	EUR		64,000		90,920
Santander Issuances SA, EMTN
4.75% until 05/29/2014, then variable due 05/29/2019			100,000		141,686
Standard Chartered Bank, EMTN
3.625% until 02/03/2012, then variable due 02/03/2017			210,000		283,782
Sumitomo Mitsui Banking Corp.
5.625% until 10/15/2015, then variable due 07/29/2049 (f)		$	200,000		190,406
4.375% until 10/15/2015, then variable due 07/29/2049	EUR		100,000		118,559
SunTrust Banks, Inc.
7.75% due 05/01/2010		$	175,000		179,260
Toronto-Dominion Bank, EMTN
4.875% due 01/23/2013	EUR		100,000		152,127
Toronto-Dominion Bank, MTN
5.69% due 06/03/2018 (b)	CAD		119,000		117,677
UniCredito Italiano SpA, EMTN
5.75% due 09/26/2017	EUR		95,000		140,495
6.10% due 02/28/2012			24,000		35,928
US Bancorp
4.20% due 05/15/2014		$	175,000		182,268
US Bancorp, MTN, Series P
4.50% due 07/29/2010		$	190,000	$	196,291
US Bank NA, BKNT
6.375% due 08/01/2011			400,000		432,855
VTB Capital SA
6.875% due 05/29/2018			250,000		240,312
Wachovia Corp.
5.75% due 02/01/2018			645,000		677,353
Westpac Banking Corp., EMTN
4.875% due 09/28/2012	EUR		75,000		112,459
					19,678,996
Biotechnology - 0.04%
Amgen, Inc.
6.40% due 02/01/2039		$	65,000		73,891
Genentech, Inc.
4.40% due 07/15/2010			125,000		128,459
4.75% due 07/15/2015			160,000		170,183
					372,533
Broadcasting - 0.79%
British Sky Broadcasting Group PLC
6.10% due 02/15/2018 (f)			355,000		375,344
9.50% due 11/15/2018 (f)			405,000		519,631
BSKYB Finance UK PLC
5.75% due 10/20/2017	GBP		65,000		111,382
Discovery Communications LLC
5.625% due 08/15/2019		$	370,000		378,338
News America, Inc.
6.15% due 03/01/2037			870,000		840,388
6.20% due 12/15/2034			190,000		184,389
6.40% due 12/15/2035			380,000		377,087
7.85% due 03/01/2039			85,000		99,286
Nexstar Broadcasting, Inc., PIK
7.00% due 01/15/2014 (f)			317,611		120,692
Sirius XM Radio, Inc.
7.00% due 12/01/2014 (f)			450,000		318,937
9.625% due 08/01/2013			250,000		221,250
9.75% due 09/01/2015 (f)			150,000		150,000
13.00% due 08/01/2014 (f)			1,125,000		1,068,750
Time Warner Cable, Inc.
5.40% due 07/02/2012			805,000		858,689
7.30% due 07/01/2038			1,145,000		1,295,532
XM Satellite Radio, Inc.
11.25% due 06/15/2013 (f)			175,000		181,563
					7,101,258
Building Materials & Construction - 0.34%
Columbus McKinnon Corp.
8.875% due 11/01/2013			575,000		572,125
CRH America, Inc.
5.30% due 10/15/2013 (f)			140,000		140,607
6.00% due 09/30/2016			240,000		235,582
Esco Corp.
4.5044% due 12/15/2013 (b)(f)			175,000		156,188
8.625% due 12/15/2013 (f)			600,000		582,000
Lafarge SA
6.15% due 07/15/2011			140,000		144,539
Lafarge SA, EMTN
7.625% due 05/27/2014	EUR		60,000		94,670

The accompanying notes are an integral part of the financial statements.

301

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Building Materials & Construction (continued)
Linde Finance BV
6.50% due 01/29/2016	GBP		65,000	$	115,578
Linde Finance BV, EMTN
4.75% due 04/24/2017	EUR		100,000		147,788
Obrascon Huarte Lain SA
6.25% due 05/18/2012			100,000		120,422
Texas Industries, Inc.
7.25% due 07/15/2013		$	525,000		490,875
7.25% due 07/15/2013			125,000		116,875
US Concrete, Inc.
8.375% due 04/01/2014			175,000		114,188
					3,031,437
Business Services - 0.62%
Affinity Group, Inc.
9.00% due 02/15/2012 ^			100,000		64,000
10.875% due 02/15/2012 ^			48,587		19,435
Atlantia SpA, EMTN
5.625% due 05/06/2016	EUR		50,000		77,418
Deluxe Corp.
7.375% due 06/01/2015		$	600,000		537,000
Dun & Bradstreet Corp.
5.50% due 03/15/2011			120,000		123,344
First Data Corp.
9.875% due 09/24/2015			350,000		299,250
10.55% due 09/24/2015			918,649		711,953
FTI Consulting, Inc.
7.625% due 06/15/2013			375,000		367,500
7.75% due 10/01/2016			550,000		536,250
Manpower, Inc., EMTN
4.75% due 06/14/2013	EUR		50,000		63,159
Mobile Services Group, Inc.
9.75% due 08/01/2014		$	525,000		525,000
Nebraska Book Company, Inc.
8.625% due 03/15/2012			625,000		503,125
SunGard Data Systems, Inc.
9.125% due 08/15/2013			448,000		443,520
10.25% due 08/15/2015			75,000		74,250
10.625% due 05/15/2015 (f)			175,000		180,687
Thomson Reuters Corp.
5.20% due 12/01/2014	CAD		40,000		39,062
5.95% due 07/15/2013		$	390,000		420,014
6.50% due 07/15/2018			340,000		381,291
Ticketmaster Entertainment, Inc.
10.75% due 08/01/2016			275,000		264,000
					5,630,258
Cable & Television - 1.16%
AT&T Broadband Corp.
8.375% due 03/15/2013			149,000		172,191
Cablemas SA de CV, Series REGS
9.375% due 11/15/2015			350,000		376,250
Charter Communications, Inc.
12.875% due 09/15/2014 ^ (f)			300,000		325,500
Comcast Cable Communications, Inc.
6.75% due 01/30/2011			125,000		132,931
Comcast Corp.
5.70% due 05/15/2018			315,000		332,628
5.85% due 01/15/2010			100,000		101,810
COX Communications, Inc.
6.25% due 06/01/2018 (f)		$	445,000	$	473,594
7.125% due 10/01/2012			171,000		189,577
8.375% due 03/01/2039			40,000		49,603
9.375% due 01/15/2019 (f)			390,000		497,119
CSC Holdings, Inc.
8.625% due 02/15/2019 (f)			125,000		126,250
DirecTV Holdings LLC
6.375% due 06/15/2015			350,000		354,375
7.625% due 05/15/2016			200,000		210,500
8.375% due 03/15/2013			225,000		230,625
EchoStar DBS Corp.
6.625% due 10/01/2014			500,000		475,000
Grupo Televisa SA
6.00% due 05/15/2018			400,000		405,065
Historic TW, Inc.
6.875% due 06/15/2018			1,160,000		1,287,630
ITV PLC, EMTN
6.00% due 10/03/2011	EUR		60,000		84,143
Kabel Deutschland GmbH
10.625% due 07/01/2014		$	375,000		391,406
Mediacom Broadband LLC
8.50% due 10/15/2015			200,000		195,500
Rainbow National Services LLC
8.75% due 09/01/2012 (f)			100,000		101,000
Rogers Cable, Inc.
5.50% due 03/15/2014			160,000		171,296
6.25% due 06/15/2013			335,000		368,356
Sinclair Broadcast Group, Inc.
8.00% due 03/15/2012			725,000		598,125
Time Warner Cable, Inc.
7.50% due 04/01/2014			45,000		51,649
8.25% due 02/14/2014			350,000		409,421
Time Warner, Inc.
7.70% due 05/01/2032			295,000		327,107
Univision Communications, Inc.
9.75% due 03/15/2015 (f)			1,325,000		848,000
12.00% due 07/01/2014 (f)			350,000		367,500
Viacom, Inc.
5.625% due 09/15/2019			255,000		257,407
5.75% due 04/30/2011			5,000		1,891
Videotron Ltee
6.375% due 12/15/2015			125,000		114,687
6.875% due 01/15/2014			390,000		372,937
9.125% due 04/15/2018 (f)			25,000		26,375
9.125% due 04/15/2018			25,000		26,375
					10,453,823
Cellular Communications - 1.15%
America Movil SAB de CV
5.625% due 11/15/2017			110,000		110,305
5.75% due 01/15/2015			190,000		197,619
6.375% due 03/01/2035			600,000		612,276
8.46% due 12/18/2036	MXN		1,000,000		55,055
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		$	455,000		493,600
Cricket Communications, Inc.
7.75% due 05/15/2016 (f)			300,000		291,000
9.375% due 11/01/2014			500,000		471,250

The accompanying notes are an integral part of the financial statements.

302

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cellular Communications (continued)
Cricket Communications, Inc. (continued)
10.00% due 07/15/2015		$	175,000	$	169,312
Crown Castle International Corp.
9.00% due 01/15/2015			550,000		572,000
Digicel Group, Ltd.
8.875% due 01/15/2015 (f)			1,380,000		1,231,650
MetroPCS Wireless, Inc.
9.25% due 11/01/2014			250,000		245,312
9.25% due 11/01/2014			375,000		367,969
Millicom International Cellular SA
10.00% due 12/01/2013			125,000		129,531
Motorola, Inc.
8.00% due 11/01/2011			325,000		340,564
Nextel Communications, Inc.
6.875% due 10/31/2013			500,000		447,500
Nextel Communications, Inc., Series D
7.375% due 08/01/2015			275,000		234,781
NII Capital Corp.
10.00% due 08/15/2016 (f)			925,000		915,750
Rogers Communications, Inc.
6.80% due 08/15/2018			425,000		481,250
7.50% due 03/15/2015			140,000		164,180
Rogers Wireless, Inc.
6.375% due 03/01/2014			400,000		441,146
7.625% due 12/15/2011	CAD		35,000		35,376
Verizon Wireless Capital LLC
3.75% due 05/20/2011 (f)		$	200,000		206,515
7.375% due 11/15/2013 (f)			315,000		361,076
8.50% due 11/15/2018 (f)			945,000		1,190,329
VIP Finance Ireland, Ltd.
9.125% due 04/30/2018			200,000		199,750
Vodafone Group PLC
5.625% due 02/27/2017			275,000		289,986
Vodafone Group PLC, EMTN
4.75% due 06/14/2016	EUR		50,000		75,199
					10,330,281
Cellular Telecom - 0.04%
Verizon Communications, Inc.
8.75% due 11/01/2018		$	300,000		378,785
Chemicals - 0.45%
Ashland, Inc.
9.125% due 06/01/2017 (f)			275,000		288,750
Bayer AG, EMTN
5.625% due 05/23/2018	GBP		100,000		169,038
Cognis GmbH
9.50% due 05/15/2014 (f)	EUR		425,000		578,816
E.I. Du Pont de Nemours & Company
5.60% due 12/15/2036		$	285,000		293,063
Huntsman International LLC
6.875% due 11/15/2013 (f)	EUR		350,000		411,443
7.875% due 11/15/2014		$	225,000		200,250
Koppers Holdings, Inc. zero coupon, step up to 9.875% on 11/15/2009 due 11/15/2014			975,000		926,250
Koppers, Inc.
9.875% due 10/15/2013			100,000		103,250
Lubrizol Corp.
4.625% due 10/01/2009			250,000		250,528
8.875% due 02/01/2019		$	105,000	$	129,447
Nalco Company
8.25% due 05/15/2017			300,000		313,500
Polyone Corp.
8.875% due 05/01/2012			325,000		318,500
Rhodia SA
3.746% due 10/15/2013 (b)	EUR		50,000		61,465
					4,044,300
Coal - 0.14%
Arch Coal, Inc.
8.75% due 08/01/2016 (f)		$	275,000		275,000
International Coal Group, Inc.
10.25% due 07/15/2014			475,000		401,375
Massey Energy Company
3.25% due 08/01/2015			231,000		173,373
Peabody Energy Corp.
7.375% due 11/01/2016			375,000		375,000
					1,224,748
Commercial Services - 0.13%
Aramark Corp.
3.9831% due 02/01/2015 (b)			225,000		191,812
5.00% due 06/01/2012			400,000		364,000
Mac-Gray Corp.
7.625% due 08/15/2015			525,000		509,250
Rentokil Initial PLC, EMTN
4.625% due 03/27/2014	EUR		50,000		68,756
					1,133,818
Computers & Business Equipment - 0.34%
Hewlett-Packard Company
2.95% due 08/15/2012		$	345,000		353,151
International Business Machines Corp.
6.50% due 10/15/2013			250,000		285,303
6.625% due 01/30/2014	EUR		50,000		81,456
Seagate Technology HDD Holdings
6.375% due 10/01/2011		$	250,000		246,250
Seagate Technology International
10.00% due 05/01/2014 (f)			475,000		509,437
Xerox Corp.
5.50% due 05/15/2012			295,000		307,536
5.65% due 05/15/2013			560,000		575,154
6.35% due 05/15/2018			455,000		465,590
8.25% due 05/15/2014			180,000		202,690
					3,026,567
Containers & Glass - 0.50%
Ball Corp.
7.125% due 09/01/2016			400,000		400,000
7.375% due 09/01/2019			250,000		249,375
BWAY Corp.
10.00% due 04/15/2014 (f)			250,000		259,375
Clondalkin Acquisition BV
2.6294% due 12/15/2013 (b)(f)			625,000		500,000
Crown Americas LLC
7.625% due 05/15/2017 (f)			250,000		248,125
Graham Packaging Company
9.875% due 10/15/2014			675,000		671,625

The accompanying notes are an integral part of the financial statements.

303

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Containers & Glass (continued)
Graphic Packaging International Corp.
8.50% due 08/15/2011		$	207,000	$	206,482
9.50% due 08/15/2013			75,000		75,188
9.50% due 06/15/2017 (f)			225,000		230,625
9.50% due 06/15/2017 (f)			125,000		128,125
Plastipak Holdings, Inc.
8.50% due 12/15/2015 (f)			600,000		573,000
10.625% due 08/15/2019 (f)			100,000		104,500
Silgan Holdings, Inc.
6.75% due 11/15/2013			375,000		367,500
Solo Cup Company
8.50% due 02/15/2014			425,000		389,938
Vitro SA de CV
8.625% due 02/01/2012 ^			200,000		79,000
					4,482,858
Crude Petroleum & Natural Gas - 1.50%
Amerada Hess Corp.
7.375% due 10/01/2009			75,000		75,249
AmeriGas Partners LP
7.125% due 05/20/2016			25,000		23,937
7.25% due 05/20/2015			825,000		796,125
Berry Petroleum Company
10.25% due 06/01/2014			300,000		313,125
Bill Barrett Corp.
5.00% due 03/15/2028			227,000		208,556
Canadian Natural Resources, Ltd.
5.15% due 02/01/2013			180,000		188,286
6.25% due 03/15/2038			380,000		398,025
6.45% due 06/30/2033			75,000		79,006
Canadian Natural Resources, Ltd., MTN
4.50% due 01/23/2013	CAD		45,000		42,982
Chesapeake Energy Corp.
6.375% due 06/15/2015		$	25,000		22,781
9.50% due 02/15/2015			250,000		255,000
Compton Petroleum Finance Corp.
7.625% due 12/01/2013			600,000		414,000
Connacher Oil and Gas, Ltd.
10.25% due 12/15/2015 (f)			1,225,000		863,625
11.75% due 07/15/2014 (f)			125,000		126,875
Denbury Resources, Inc.
9.75% due 03/01/2016			325,000		342,062
EnCana Corp.
5.90% due 12/01/2017			380,000		409,466
EnCana Corp., MTN
5.80% due 01/18/2018	CAD		30,000		29,651
Encore Acquisition Company
7.25% due 12/01/2017		$	400,000		354,000
9.50% due 05/01/2016			150,000		151,500
Forest Oil Corp.
7.25% due 06/15/2019			250,000		235,000
8.50% due 02/15/2014 (f)			100,000		100,500
Gulfstream Natural Gas System LLC
6.95% due 06/01/2016 (f)			90,000		99,744
Hess Corp.
6.65% due 08/15/2011			250,000		268,486
7.875% due 10/01/2029			368,000		436,788
8.125% due 02/15/2019			55,000		65,081
Hilcorp Energy I LP
7.75% due 11/01/2015 (f)		$	1,175,000	$	1,083,937
KazMunaiGaz Finance Sub BV
11.75% due 01/23/2015 (f)			250,000		270,313
KazMunaiGaz Finance Sub BV, Series REGS
9.125% due 07/02/2018			300,000		290,250
Marathon Oil Corp.
6.50% due 02/15/2014			85,000		93,618
Mariner Energy, Inc.
11.75% due 06/30/2016			325,000		342,875
OPTI Canada, Inc.
7.875% due 12/15/2014			575,000		368,000
8.25% due 12/15/2014			1,025,000		666,250
Penn Virginia Corp.
4.50% due 11/15/2012			100,000		86,647
10.375% due 06/15/2016			175,000		184,188
Petrobras International Finance Company
5.875% due 03/01/2018			260,000		266,350
7.875% due 03/15/2019			204,000		230,010
PetroHawk Energy Corp.
7.875% due 06/01/2015 (f)			150,000		145,500
9.125% due 07/15/2013			650,000		659,750
10.50% due 08/01/2014			425,000		454,750
Petroleos Mexicanos
8.00% due 05/03/2019 (f)			160,000		180,000
Pride International, Inc.
8.50% due 06/15/2019			150,000		157,500
Quicksilver Resources, Inc.
11.75% due 01/01/2016			400,000		424,000
Rowan Companies, Inc.
7.875% due 08/01/2019			230,000		242,495
SandRidge Energy, Inc., PIK
8.625% due 04/01/2015			1,000,000		940,000
Southern Natural Gas Company
5.90% due 04/01/2017 (f)			99,000		101,416
					13,487,699
Domestic Oil - 0.54%
AGL Capital Corp.
5.25% due 08/15/2019			300,000		302,394
ConocoPhillips Company
5.30% due 04/15/2012			415,000		446,113
Devon Energy Corp.
5.625% due 01/15/2014			105,000		113,120
Devon Financing Corp.
6.875% due 09/30/2011			330,000		360,104
7.875% due 09/30/2031			375,000		461,976
Diamond Offshore Drilling, Inc.
4.875% due 07/01/2015			240,000		248,207
5.15% due 09/01/2014			395,000		417,382
5.875% due 05/01/2019			80,000		85,940
EOG Resources, Inc.
5.875% due 09/15/2017			185,000		203,282
6.125% due 10/01/2013			215,000		238,076
Marathon Oil Corp.
5.90% due 03/15/2018			395,000		409,786
6.00% due 10/01/2017			220,000		227,869
6.60% due 10/01/2037			80,000		82,921

The accompanying notes are an integral part of the financial statements.

304

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Domestic Oil (continued)
Range Resources Corp.
7.375% due 07/15/2013		$	75,000	$	74,250
7.50% due 05/15/2016			100,000		99,000
SandRidge Energy, Inc.
4.2219% due 04/01/2014 (b)			500,000		415,184
Valero Energy Corp.
6.125% due 06/15/2017			510,000		509,100
9.375% due 03/15/2019			140,000		161,447
					4,856,151
Drugs & Health Care - 0.09%
AstraZeneca PLC, EMTN
5.125% due 01/15/2015	EUR		50,000		76,969
Rite Aid Corp.
9.75% due 06/12/2016 (f)		$	125,000		132,187
10.375% due 07/15/2016			175,000		168,875
Valeant Pharmaceuticals
8.375% due 06/15/2016 (f)			200,000		203,000
Wyeth
5.95% due 04/01/2037			205,000		223,246
					804,277
Educational Services - 0.07%
Education Management Corp.
8.75% due 06/01/2014			300,000		307,500
10.25% due 06/01/2016			325,000		340,031
					647,531
Electrical Utilities - 1.59%
AES Corp.
7.75% due 03/01/2014			50,000		48,687
8.875% due 02/15/2011			275,000		283,250
9.75% due 04/15/2016 (f)			725,000		754,000
Alabama Power Company, Series 07-D
4.85% due 12/15/2012			100,000		108,261
Appalachian Power Company
6.375% due 04/01/2036			170,000		177,618
7.95% due 01/15/2020			100,000		120,465
Appalachian Power Company, Series O
5.65% due 08/15/2012			325,000		344,173
Baltimore Gas & Electric Company
5.90% due 10/01/2016			285,000		297,513
Black Hills Corp.
6.50% due 05/15/2013			235,000		245,622
9.00% due 05/15/2014			155,000		174,518
Carolina Power & Light Company
5.30% due 01/15/2019			140,000		149,568
CenterPoint Energy Transition Bond Company LLC, Series A-2
4.97% due 08/01/2014			150,803		159,982
CenterPoint Energy, Inc., Series B
7.25% due 09/01/2010			205,000		210,161
CEZ AS, EMTN
5.75% due 05/26/2015	EUR		50,000		77,333
Consolidated Edison Company of New York, Inc.
6.75% due 04/01/2038		$	170,000		199,495
Consumers Energy Company
5.80% due 09/15/2035			100,000		99,545
Dominion Resources, Inc.
4.75% due 12/15/2010			100,000		103,103
E.ON International Finance BV, EMTN
5.125% due 10/02/2012	EUR		50,000	$	76,881
5.50% due 01/19/2016			40,000		62,406
Edison SpA, EMTN
5.125% due 12/10/2010			28,000		41,643
EDP Finance BV, EMTN
3.75% due 06/22/2015			80,000		114,173
El Paso Electric Company
6.00% due 05/15/2035		$	245,000		211,173
Electricite de France SA
6.95% due 01/26/2039			225,000		274,775
Elia System Operator SA
4.75% due 05/13/2014	EUR		42,000		62,952
Empresas Publicas de Medellin ESP
7.625% due 07/29/2019 (f)		$	100,000		106,400
Energy Future Holdings Corp.
10.875% due 11/01/2017			500,000		357,500
Energy Future Holdings Corp., PIK
11.25% due 11/01/2017			1,058,500		645,685
Entergy Louisiana LLC
5.83% due 11/01/2010			35,000		35,077
FirstEnergy Solutions Corp.
4.80% due 02/15/2015 (f)			185,000		189,087
Hydro One, Inc., MTN
5.18% due 10/18/2017	CAD		69,000		68,333
Illinois Power Company		��
6.125% due 11/15/2017		$	120,000		126,089
Israel Electric Corp., Ltd.
9.375% due 01/28/2020			250,000		294,375
Majapahit Holding BV
8.00% due 08/07/2019 (f)			100,000		101,120
Mirant Americas Generation LLC
8.30% due 05/01/2011			350,000		351,750
Monongahela Power Company
5.70% due 03/15/2017 (f)			265,000		261,791
National Grid PLC, EMTN
5.00% due 07/02/2018	EUR		62,000		89,943
6.50% due 04/22/2014			50,000		79,284
National Power Corp.
4.6569% due 08/23/2011 (b)(f)		$	200,000		204,000
6.875% due 11/02/2016			100,000		100,803
9.625% due 05/15/2028			135,000		149,850
Nevada Power Company
5.875% due 01/15/2015			45,000		47,940
Nevada Power Company, Series R
6.75% due 07/01/2037			245,000		266,732
Northeast Utilities
5.65% due 06/01/2013			600,000		618,484
Northern States Power
5.25% due 03/01/2018			115,000		122,276
Ohio Power Company
5.75% due 09/01/2013			195,000		209,044
Orion Power Holdings, Inc.
12.00% due 05/01/2010			200,000		206,500
Pacific Gas & Electric Company
4.80% due 03/01/2014			235,000		249,713
6.35% due 02/15/2038			110,000		125,379
PPL Electric Utilities Corp.
7.125% due 11/30/2013			155,000		178,343

The accompanying notes are an integral part of the financial statements.

305

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
RRI Energy, Inc.
6.75% due 12/15/2014		$	437,000	$	437,000
7.625% due 06/15/2014			350,000		320,250
7.875% due 06/15/2017			250,000		221,875
San Diego Gas & Electric Company
6.00% due 06/01/2039			175,000		196,519
Scottish & Southern Energy PLC, EMTN
6.125% due 07/29/2013	EUR		50,000		77,636
Scottish Power UK PLC
8.375% due 02/20/2017	GBP		39,000		77,834
Sierra Pacific Resources
7.803% due 06/15/2012		$	125,000		125,914
8.625% due 03/15/2014			100,000		101,750
Southern California Edison Company
5.75% due 03/15/2014			150,000		165,421
Southern Company
4.15% due 05/15/2014			145,000		149,109
Southern Company, Series A
5.30% due 01/15/2012			95,000		101,693
Tampa Electric Company
6.15% due 05/15/2037			230,000		241,530
Taqa Abu Dhabi National Energy Company
5.62% due 10/25/2012 (f)			820,000		845,143
Texas Competitive Electric Holdings Company LLC, PIK
10.50% due 11/01/2016			343,281		200,819
Union Electric Company
5.40% due 02/01/2016			285,000		292,730
Virginia Electric and Power Company
4.50% due 12/15/2010			230,000		237,006
5.10% due 11/30/2012			210,000		226,035
Virginia Electric and Power Company, Series A
6.00% due 05/15/2037			300,000		327,333
West Penn Power Company
5.95% due 12/15/2017 (f)			220,000		227,960
Westar Energy, Inc.
5.10% due 07/15/2020			185,000		181,946
Xcel Energy, Inc.
7.00% due 12/01/2010			30,000		31,273
					14,369,571
Electronics - 0.02%
Flextronics International, Ltd.
6.50% due 05/15/2013			212,000		202,990
Energy - 0.49%
Copano Energy LLC
8.125% due 03/01/2016			575,000		550,562
Encore Acquisition Company
6.25% due 04/15/2014			275,000		244,750
Enterprise Products Operating LP
4.95% due 06/01/2010			490,000		498,124
6.30% due 09/15/2017			215,000		230,948
Ferrellgas Partners LP
8.75% due 06/15/2012			900,000		886,500
Hercules Offshore, Inc.
3.375% due 06/01/2038			126,000		86,310
Mirant North America LLC
7.375% due 12/31/2013			550,000		528,000
Northwest Pipeline Corp.
5.95% due 04/15/2017		$	65,000	$	68,653
NRG Energy, Inc.
7.25% due 02/01/2014			400,000		389,000
7.375% due 02/01/2016			30,000		28,688
7.375% due 01/15/2017			500,000		476,250
Plains Exploration & Production Company
7.00% due 03/15/2017			300,000		276,000
Sempra Energy
7.95% due 03/01/2010			175,000		179,829
					4,443,614
Financial Services - 6.12%
AAC Group Holding Corp.
10.25 due 10/01/2012 (f)			125,000		108,750
American Express Company
7.25% due 05/20/2014			105,000		115,552
American Express Credit Corp.
5.125% due 08/25/2014			680,000		688,250
American Express Credit Corp., MTN
5.875% due 05/02/2013			380,000		396,883
American Express Credit Corp., Series C
7.30% due 08/20/2013			300,000		328,829
American Honda Finance Corp., EMTN
6.25% due 07/16/2013	EUR		50,000		77,662
Ameriprise Financial, Inc.
7.30% due 06/28/2019		$	365,000		402,521
Arch Western Finance LLC
6.75% due 07/01/2013			75,000		71,625
Atlantic Finance, Ltd.
8.75% due 05/27/2014			250,000		247,486
Bank Nederlandse Gemeenten, EMTN
4.625% due 09/13/2012	EUR		925,000		1,411,346
BAT International Finance PLC
8.125% due 11/15/2013 (f)		$	955,000		1,086,437
BAT International Finance PLC, EMTN
5.375% due 06/29/2017	EUR		130,000		197,120
BHP Billiton Finance, Ltd.
5.40% due 03/29/2017		$	170,000		180,689
BHP Billiton Finance, Ltd.,EMTN
4.75% due 04/04/2012	EUR		50,000		75,520
BMW Finance NV, EMTN
8.875% due 09/19/2013			90,000		152,968
Boeing Capital Corp., Ltd.
7.375% due 09/27/2010		$	255,000		270,304
BP Capital Markets PLC
1.55% due 08/11/2011			500,000		500,902
Bunge, Ltd. Finance Corp.
8.50% due 06/15/2019			175,000		197,392
C10 Capital SPV, Ltd.
6.722% until 12/31/2016, then variable due 12/31/2049			100,000		66,250
Capital One Capital IV
6.745% until 02/17/2032, then variable due 02/17/2037			425,000		306,000
Capital One Financial Corp.
7.375% due 05/23/2014			225,000		245,440
Caterpillar Financial Services Corp., MTN
4.25% due 02/08/2013			220,000		223,667

The accompanying notes are an integral part of the financial statements.

306

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Caterpillar Financial Services Corp., MTN (continued)
5.85% due 09/01/2017		$	165,000	$	174,923
CenterCredit International BV
8.625% due 01/30/2014			540,000		421,200
Citigroup, Inc.
4.75% until 02/10/2014, then variable due 02/10/2019	EUR		40,000		43,806
5.125% due 02/14/2011		$	220,000		222,492
5.50% due 08/27/2012			220,000		223,730
5.50% due 04/11/2013			615,000		612,140
5.85% due 07/02/2013			445,000		447,680
6.125% due 05/15/2018			665,000		625,264
6.50% due 08/19/2013			130,000		133,489
8.50% due 05/22/2019			175,000		191,289
Citigroup, Inc., EMTN
3.50% due 08/05/2015	EUR		160,000		203,175
6.40% due 03/27/2013			110,000		163,735
Countrywide Financial Corp.
4.50% due 06/15/2010		$	135,000		136,294
Countrywide Home Loans, Inc., MTN
4.125% due 09/15/2009			540,000		540,434
Credit Suisse First Boston USA, Inc.
4.875% due 08/15/2010			325,000		334,614
6.125% due 11/15/2011			435,000		467,416
Credit Suisse New York
5.30% due 08/13/2019			300,000		303,541
5.50% due 05/01/2014			545,000		585,740
Credit Suisse USA, Inc.
5.50% due 08/16/2011			170,000		180,768
Credit Suisse/London, EMTN
5.125% due 09/18/2017	EUR		125,000		187,393
6.125% due 08/05/2013			50,000		78,363
CRH Finance BV, EMTN
7.375% due 05/28/2014			50,000		78,432
Daimler International Finance BV, EMTN
7.875% due 01/16/2014			25,000		40,741
Discover Financial Services
10.25% due 07/15/2019		$	385,000		421,672
Dubai Holding Commercial Operations MTN, Ltd., EMTN
4.75% due 01/30/2014	EUR		100,000		112,487
E*Trade Financial Corp.
7.375% due 09/15/2013		$	1,300,000		1,114,750
12.50% due 11/30/2017			239,000		241,987
ERP Operating LP
3.85% due 08/15/2026			15,000		14,623
Finmeccanica Finance SA, EMTN
8.125% due 12/03/2013	EUR		75,000		125,049
Ford Motor Credit Company LLC
7.25% due 10/25/2011		$	100,000		94,034
7.50% due 08/01/2012			725,000		667,305
9.75% due 09/15/2010			225,000		227,177
12.00% due 05/15/2015			350,000		364,369
Fresenius US Finance II, Inc.
9.00% due 07/15/2015 (f)			100,000		108,500
GATX Financial Corp.
5.50% due 02/15/2012			275,000		274,420
GE Capital Canada Funding Company, MTN
4.65% due 02/11/2015	CAD		134,000	$	123,500
GE Capital European Funding, EMTN
3.50% due 02/14/2013	EUR		160,000		229,735
GE Capital UK Funding, EMTN
5.625% due 12/12/2014	GBP		145,000		239,389
General Electric Capital Corp.
4.625% until 09/15/2016, then variable due 09/15/2066	EUR		135,000		126,766
4.80% due 05/01/2013		$	1,105,000		1,147,394
5.875% due 01/14/2038			650,000		577,008
5.90% due 05/13/2014			1,150,000		1,229,018
General Electric Capital Corp., MTN
5.25% due 10/19/2012			250,000		261,688
General Electric Capital Corp., Series GMTN
6.00% due 08/07/2019			210,000		211,592
General Electric Capital Corp., Series A, MTN
4.25% due 09/13/2010			480,000		491,520
GMAC LLC
6.875% due 09/15/2011			400,000		363,851
6.875% due 09/15/2011 (f)			425,000		392,062
7.75% due 01/19/2010 (f)			175,000		173,688
8.00% due 11/01/2031 (f)			825,000		637,313
Goldman Sachs Group, Inc.
3.625% due 08/01/2012			65,000		66,326
3.75% due 02/04/2013	EUR		75,000		107,223
5.125% due 10/16/2014			100,000		147,760
6.00% due 05/01/2014		$	130,000		140,166
6.15% due 04/01/2018			830,000		876,132
6.345% due 02/15/2034			324,000		285,607
6.60% due 01/15/2012			1,175,000		1,272,093
6.75% due 10/01/2037			335,000		335,395
6.875% due 01/15/2011			460,000		490,825
7.50% due 02/15/2019			545,000		627,456
Goldman Sachs Group, Inc., GMTN
4.50% due 01/30/2017	EUR		100,000		139,487
Grupo Petrotemex SA de CV
9.50% due 08/19/2014 (f)		$	225,000		232,313
GTB Finance BV
8.50% due 01/29/2012			475,000		432,096
Hexion U.S. Finance Corp/Hexion Nova Scotia
Finance ULC
9.75% due 11/15/2014			375,000		281,250
Icahn Enterprises LP
4.00% due 08/15/2013 (b)			549,000		422,730
7.125% due 02/15/2013			600,000		570,000
International Lease Finance Corp., MTN
5.30% due 05/01/2012			375,000		300,927
5.45% due 03/24/2011			500,000		439,857
6.625% due 11/15/2013			625,000		483,957
iPayment Investors LP
11.625% due 07/15/2014 (b)(f)			471,525		301,776
iPayment, Inc.
9.75% due 05/15/2014			400,000		258,000
Janus Capital Group, Inc.
6.95% due 06/15/2017			425,000		393,884
Jefferies Group, Inc.
5.875% due 06/08/2014			176,000		177,706
6.25% due 01/15/2036			260,000		200,353

The accompanying notes are an integral part of the financial statements.

307

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Jefferies Group, Inc. (continued)
8.50% due 07/15/2019		$	80,000	$	82,680
John Deere Capital Corp., MTN
4.95% due 12/17/2012			805,000		864,886
5.50% due 04/13/2017			130,000		138,696
JPMorgan Chase & Company
2.125% due 12/26/2012			45,000		45,455
4.65% due 06/01/2014			1,230,000		1,284,285
4.75% due 05/01/2013			485,000		513,127
6.00% due 01/15/2018			805,000		865,128
6.30% due 04/23/2019			550,000		602,953
6.40% due 05/15/2038			380,000		419,629
JPMorgan Chase & Company, EMTN
4.375% until 11/12/2014, then variable due 11/12/2019	EUR		150,000		206,830
4.25% due 06/09/2011			39,000		57,422
JPMorgan Chase Capital XVIII, Series R
6.95% due 08/17/2036		$	115,000		105,444
JPMorgan Chase Capital XXII, Series V
6.45% due 02/02/2037			245,000		210,623
JSG Funding PLC
7.75% due 04/01/2015			250,000		202,500
Kazakhstan Temir Zholy Finance BV
7.00% due 05/11/2016			150,000		121,431
Lazard Group LLC
7.125% due 05/15/2015			500,000		502,269
MassMutual Global Funding II
3.625% due 07/16/2012 (f)			254,000		255,601
Mellon Funding Corp.
6.375% due 11/08/2011	GBP		145,000		254,460
Merrill Lynch & Company, Inc.
5.45% due 02/05/2013		$	655,000		665,990
7.75% due 05/14/2038			410,000		435,371
Merrill Lynch & Company, Inc., EMTN
4.45% due 01/31/2014	EUR		40,000		56,019
4.625% due 10/02/2013			80,000		113,770
Merrill Lynch & Company, Inc., MTN
6.15% due 04/25/2013		$	195,000		203,022
6.875% due 04/25/2018			745,000		760,705
Metropolitan Life Global Funding
5.125% due 11/09/2011 (f)			335,000		347,892
Metropolitan Life Global Funding I
5.125% due 06/10/2014 (f)			165,000		171,944
Metropolitan Life Global Funding I, EMTN
4.625% due 05/16/2017	EUR		100,000		123,097
Mitsubishi UFJ Financial Group, Inc., Capital Finance 1, Ltd.
6.346% until 07/25/2016, then variable due 07/29/2049		$	200,000		183,689
Mizuho Capital Investment 1, Ltd.
6.686% until 06/30/2016, then variable due 03/29/2049 (f)			126,000		104,685
Morgan Stanley
4.00% due 01/15/2010			355,000		358,298
6.00% due 05/13/2014			195,000		206,776
7.30% due 05/13/2019			650,000		723,860
Morgan Stanley, EMTN
4.00% due 11/17/2015	EUR		190,000		257,476
Morgan Stanley, GMTN
5.125% due 11/30/2015	GBP		100,000	$	160,441
Morgan Stanley, MTN
6.00% due 04/28/2015		$	1,455,000		1,536,954
6.625% due 04/01/2018			550,000		587,696
Mubadala Development Company
5.75% due 05/06/2014 (f)			250,000		263,162
Nationwide Building Society, EMTN
3.375% until08/17/2010, then variable due 08/17/2015	EUR		55,000		70,444
Nexstar Finance Holdings LLC
11.375 due 04/01/2013		$	223,713		64,877
Nexstar Finance, Inc.
7.00% due 01/15/2014			105,000	��	41,475
Nisource Finance Corp.
0.9769% due 11/23/2009 (b)			140,000		139,263
6.15% due 03/01/2013			215,000		223,535
10.75% due 03/15/2016			585,000		685,140
Nissan Motor Acceptance Corp.
4.625% due 03/08/2010 (f)			120,000		118,981
Nuveen Investments, Inc.
5.00% due 09/15/2010			275,000		262,625
10.50% due 11/15/2015 (f)			525,000		393,750
Nuveen Investments, Inc., Class A
5.50% due 09/15/2015			1,025,000		604,750
Pinnacle Foods Finance LLC/Pinnacle Foods
Finance Corp
10.625% due 04/01/2017			150,000		141,000
PNC Funding Corp.
5.625% due 02/01/2017			195,000		192,818
6.70% due 06/10/2019			280,000		306,705
Raymond James Financial, Inc.
8.60% due 08/15/2019			325,000		341,571
Reliance Intermediate Holdings LP
9.50% due 12/15/2019 (f)			425,000		415,438
RWE Finance BV, EMTN
6.375% due 06/03/2013	GBP		30,000		53,435
Severn Trent Utilities Finance PLC, EMTN
5.25% due 03/11/2016	EUR		65,000		96,316
SLM Corp.
5.45% due 04/25/2011		$	725,000		659,750
SLM Corp., MTN
5.125% due 08/27/2012			220,000		172,700
8.45% due 06/15/2018			340,000		261,560
SLM Corp., Series MTNA
5.375% due 05/15/2014			175,000		123,813
Societe Generale
6.125% due 08/20/2018	EUR		50,000		77,353
Societe Generale, EMTN
5.25% due 03/28/2013			100,000		153,417
State Street Corp.
4.30% due 05/30/2014		$	190,000		199,203
Sun Life Financial Global Funding LP
0.8275% due 10/06/2013 (b)(f)			250,000		215,079
TAM Capital, Inc.
7.375% due 04/25/2017			200,000		164,000
Teco Finance, Inc.
6.572% due 11/01/2017			37,000		37,160
7.00% due 05/01/2012			53,000		55,971

The accompanying notes are an integral part of the financial statements.

308

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
TNK-BP Finance SA
6.625% due 03/20/2017		$	250,000	$	222,500
TransCapitalInvest, Ltd.
8.70% due 08/07/2018			375,000		398,906
UBS AG/Jersey, EMTN
4.50% until 09/16/2014, then variable due 09/16/2019	EUR		215,000		278,990
UBS AG/London, EMTN
6.00% due 04/18/2018			50,000		76,460
UCI Holdco, Inc.
8.6294% due 12/15/2013		$	428,122		149,843
Wells Fargo & Company
2.125% due 06/15/2012			20,000		20,225
4.20% due 01/15/2010			255,000		257,536
4.875% due 01/12/2011			225,000		233,438
Wells Fargo Bank NA
4.75% due 02/09/2015			270,000		268,642
Wells Fargo Financial Canada Corp., MTN
4.33% due 12/06/2013	CAD		45,000		41,982
Westfield Capital Corp., Ltd.
4.375% due 11/15/2010 (f)		$	155,000		156,246
WT Finance Australia Property, Ltd.
3.625% due 06/27/2012	EUR		50,000		68,602
					55,142,233
Food & Beverages - 0.71%
Ahold Finance USA, Inc., EMTN
6.50% due 03/14/2017	GBP		50,000		84,653
Anheuser-Busch InBev NV
7.20% due 01/15/2014		$	448,000		503,171
Anheuser-Busch InBev NV, EMTN
8.625% due 01/30/2017	EUR		50,000		88,428
Anheuser-Busch InBev Worldwide, Inc.
5.375% due 11/15/2014 (f)		$	280,000		298,216
B&G Foods, Inc.
8.00% due 10/01/2011			450,000		450,000
Bacardi, Ltd.
7.75% due 04/09/2014	EUR		50,000		80,456
Casino Guichard Perrachon SA, EMTN
4.875% due 04/10/2014			50,000		72,898
6.375% due 04/04/2013			50,000		76,950
Coca-Cola Company
4.875% due 03/15/2019		$	330,000		346,023
5.00% due 11/15/2012			390,000		411,759
Coca-Cola Enterprises, Inc.
4.25% due 03/01/2015			210,000		221,579
Compass Group PLC
7.00% due 12/08/2014	GBP		25,000		45,517
Dole Food Company, Inc.
13.875% due 03/15/2014 (f)		$	200,000		228,000
General Mills, Inc.
5.25% due 08/15/2013			270,000		293,461
5.65% due 02/15/2019			35,000		37,818
General Mills, Inc., Series MTN
11.973% due 10/15/2010			275,000		291,828
Heineken NV, EMTN
7.25% due 03/10/2015	GBP		25,000		44,515
JBS SA
9.375% due 02/07/2011		$	100,000		101,500
JBS USA LLC
11.625% due 05/01/2014		$	375,000	$	393,750
Kellogg Company
4.25% due 03/06/2013			750,000		784,595
Kraft Foods, Inc., EMTN
6.25% due 03/20/2015	EUR		50,000		79,831
McCormick & Company, Inc.
5.80% due 07/15/2011		$	130,000		136,220
PepsiCo, Inc.
4.65% due 02/15/2013			135,000		144,878
SABMiller PLC
6.20% due 07/01/2011 (f)			245,000		261,017
Sysco Corp.
5.25% due 02/12/2018			110,000		117,373
Tesco PLC, EMTN
5.50% due 12/13/2019	GBP		60,000		102,042
5.875% due 09/12/2016	EUR		50,000		79,657
Tyson Foods, Inc.
10.50% due 03/01/2014		$	525,000		585,375
					6,361,510
Gas & Pipeline Utilities - 0.82%
Atmos Energy Corp.
5.95% due 10/15/2034			40,000		38,811
8.50% due 03/15/2019			55,000		67,569
Boardwalk Pipelines LLC
5.50% due 02/01/2017			305,000		297,370
Colorado Interstate Gas Company
5.95% due 03/15/2015			150,000		157,624
DCP Midstream LLC
9.70% due 12/01/2013 (f)			140,000		160,600
Duke Capital Corp.
7.50% due 10/01/2009			130,000		130,541
Dynegy Holdings, Inc.
7.50% due 06/01/2015			375,000		303,750
7.75% due 06/01/2019			1,000,000		710,000
El Paso Corp.
8.25% due 02/15/2016			225,000		227,250
12.00% due 12/12/2013			750,000		851,250
El Paso Natural Gas Company
5.95% due 04/15/2017			99,000		101,729
Enbridge, Inc., MTN
7.20% due 06/18/2032	CAD
Gas Natural Capital Markets SA, EMTN			28,000		30,263
5.25% due 07/09/2014	EUR
Intergas Finance BV, Series REGS			50,000		75,863
6.375% due 05/14/2017		$	200,000		160,000
Kinder Morgan Finance Company
5.70% due 01/05/2016			555,000		507,825
Kinder Morgan, Inc.
6.50% due 09/01/2012			139,000		141,433
National Gas Company
6.05% due 01/15/2036 (f)			105,000		81,932
Nustar Logistics
7.65% due 04/15/2018			180,000		192,251
Piedmont Natural Gas Company
6.00% due 12/19/2033			15,000		14,661
Praxair, Inc.
4.625% due 03/30/2015			415,000		448,311

The accompanying notes are an integral part of the financial statements.

309

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Gas & Pipeline Utilities (continued)
Praxair, Inc. (continued)
5.20% due 03/15/2017		$	205,000	$	218,218
Southeast Supply Header LLC
4.85% due 08/15/2014			100,000		101,535
Southern California Gas Company
5.75% due 11/15/2035			230,000		250,264
Spectra Energy Capital LLC
5.65% due 03/01/2020			905,000		917,143
Sunoco, Inc.
4.875% due 10/15/2014			30,000		30,141
5.75% due 01/15/2017			240,000		235,103
9.625% due 04/15/2015			330,000		386,991
Tennessee Gas Pipeline Company
8.00% due 02/01/2016			50,000		56,102
TransCanada Pipelines, Ltd.
7.125% due 01/15/2019			100,000		116,500
Williams Companies, Inc.
7.75% due 06/15/2031			50,000		50,869
8.75% due 01/15/2020			305,000		346,230
					7,408,129
Gold - 0.11%
Barrick Gold Corp.
6.95% due 04/01/2019			50,000		58,128
Barrick Gold Financeco LLC
6.125% due 09/15/2013			865,000		936,078
					994,206
Healthcare Products - 0.24%
Bausch & Lomb, Inc.
9.875% due 11/01/2015			200,000		200,500
Baxter International, Inc.
4.00% due 03/01/2014			100,000		104,004
Biomet, Inc.
11.625% due 10/15/2017			625,000		660,938
Boston Scientific Corp.
6.00% due 06/15/2011			100,000		102,125
FMC Finance III SA
6.875% due 07/15/2017			75,000		70,875
GlaxoSmithKline Capital PLC, EMTN
5.625% due 12/13/2017	EUR		95,000		150,680
Johnson & Johnson
4.75% due 11/06/2019			50,000		76,417
Medtronic, Inc., Series B
4.375% due 09/15/2010		$	145,000		149,388
4.75% due 09/15/2015			330,000		350,723
Universal Hospital Services, Inc.
4.635% due 06/01/2015 (b)			200,000		162,000
Universal Hospital Services, Inc., PIK
8.50% due 06/01/2015			100,000		96,500
					2,124,150
Healthcare Services - 0.52%
Cardinal Health, Inc.
0.865% due 10/02/2009 (b)			260,000		260,023
Centene Corp.
7.25% due 04/01/2014			450,000		431,437
CRC Health Corp.
10.75% due 02/01/2016			125,000		84,375
DaVita, Inc.
6.625% due 03/15/2013		$	375,000	$	363,750
7.25% due 03/15/2015			250,000		241,250
Express Scripts, Inc.
5.25% due 06/15/2012			315,000		334,136
6.25% due 06/15/2014			260,000		284,152
Healthsouth Corp.
10.75% due 06/15/2016			425,000		449,438
Roche Holdings, Inc.
5.00% due 03/01/2014			160,000		173,081
U.S. Oncology Holdings, Inc., PIK
6.9037% due 03/15/2012			378,000		321,300
U.S. Oncology, Inc.
9.125% due 08/15/2017 (f)			250,000		260,000
US Oncology, Inc.
10.75% due 08/15/2014			175,000		177,188
Vanguard Health Holding Company I LLC zero coupon, Step up to 11.25% on 10/01/2009 due 10/01/2015			350,000		351,750
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014			450,000		442,125
WellPoint, Inc.
5.00% due 01/15/2011			415,000		428,937
6.00% due 02/15/2014			85,000		90,936
					4,693,878
Holdings Companies/Conglomerates - 0.12%
ERP Operating LP
5.25% due 09/15/2014			190,000		189,305
Visant Corp.
7.625% due 10/01/2012			325,000		326,625
Visant Holding Corp.
10.25 due 12/01/2013			600,000		606,000
					1,121,930
Homebuilders - 0.11%
Centex Corp.
5.45% due 08/15/2012			60,000		60,600
D.R. Horton, Inc., Series DHI
2.00% due 05/15/2014			219,000		270,465
K Hovnanian Enterprises, Inc.
11.50% due 05/01/2013			400,000		387,000
Lennar Corp., Series B
5.60% due 05/31/2015			45,000		39,600
5.95% due 10/17/2011			25,000		24,250
MDC Holdings, Inc., MTN
5.375% due 12/15/2014			60,000		56,983
NVR, Inc.
5.00% due 06/15/2010			115,000		114,977
Pulte Homes, Inc.
5.20% due 02/15/2015			75,000		68,250
					1,022,125
Hotels & Restaurants - 0.29%
Gaylord Entertainment Company
6.75% due 11/15/2014			700,000		589,750
8.00% due 11/15/2013			300,000		273,750
Hyatt Hotels Corp.
5.75% due 08/15/2015 (f)			240,000		243,176

The accompanying notes are an integral part of the financial statements.

310

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Hotels & Restaurants (continued)
McDonald’s Corp.
5.30% due 03/15/2017		$	205,000	$	219,888
5.70% due 02/01/2039			125,000		132,209
O’Charleys, Inc.
9.00% due 11/01/2013			250,000		232,500
OSI Restaurant Partners, Inc.
10.00% due 06/15/2015			175,000		144,375
Starwood Hotels & Resorts Worldwide, Inc.
7.875% due 10/15/2014			475,000		472,625
Wendy’s/Arby’s Restaurants LLC
10.00% due 07/15/2016 (f)			325,000		333,125
					2,641,398
Household Appliances - 0.02%
Whirlpool Corp.
6.125% due 06/15/2011			140,000		144,049
Household Products - 0.04%
Yankee Acquisition Corp., Series B
8.50% due 02/15/2015			400,000		362,000
Industrial Machinery - 0.11%
CPM Holdings, Inc.
10.625% due 09/01/2014 (f)			125,000		126,250
H&E Equipment Services, Inc.
8.375% due 07/15/2016			525,000		451,500
MAN SE, EMTN
7.25% due 05/20/2016	EUR		25,000		40,168
Manitowoc, Inc.
7.125% due 11/01/2013		$	200,000		156,000
Roper Industries, Inc.
6.25% due 09/01/2019			225,000		228,338
					1,002,256
Industrials - 0.07%
Air Products & Chemicals, Inc.
4.15% due 02/01/2013			150,000		156,463
4.375% due 08/21/2019			80,000		81,129
WCA Waste Corp.
9.25% due 06/15/2014			400,000		377,000
					614,592
Insurance - 0.69%
ACE INA Holdings, Inc.
5.70% due 02/15/2017			240,000		255,748
5.90% due 06/15/2019			95,000		102,325
Aflac, Inc.
8.50% due 05/15/2019			420,000		487,962
Allstate Life Funding LLC, EMTN
6.375% due 01/17/2011	GBP		49,000		82,163
Berkshire Hathaway Finance Corp.
4.60% due 05/15/2013		$	300,000		316,184
Highmark, Inc.
6.80% due 08/15/2013 (f)			225,000		233,011
HUB International Holdings, Inc.
9.00% due 12/15/2014 (f)			550,000		495,688
10.25% due 06/15/2015 (f)			975,000		819,000
Lincoln National Corp.
8.75% due 07/01/2019			170,000		190,103
MetLife, Inc.
6.75% due 06/01/2016			15,000		16,408
Muenchener Rueckversicherungs AG 5.767% until 06/12/2017, then variable due 06/29/2049	EUR		50,000	$	60,211
Nationwide Mutual Insurance Company
6.60% due 04/15/2034 (f)		$	135,000		102,359
New York Life Global Funding, EMTN
4.375% due 01/19/2017	EUR		100,000		129,699
NLV Financial Corp.
7.50% due 08/15/2033 (f)		$	285,000		217,125
Ohio National Financial Services, Inc.
6.35% due 04/01/2013 (f)			15,000		15,032
Pacific Life Funding LLC, EMTN
5.125% due 01/20/2015	GBP		89,000		135,734
Pricoa Global Funding I
5.45% due 06/11/2014 (f)		$	435,000		446,940
Principal Financial Global Funding II LLC, EMTN
4.50% due 01/26/2017	EUR		50,000		60,705
Principal Financial Group, Inc.
6.05% due 10/15/2036		$	180,000		151,539
7.875% due 05/15/2014			385,000		424,938
8.875% due 05/15/2019			135,000		154,566
Principal Life Global Funding I
5.25% due 01/15/2013 (f)			190,000		193,118
Principal Life Income Funding Trusts
5.20% due 11/15/2010			40,000		40,197
Prudential Financial, Inc.
6.20% due 01/15/2015			175,000		183,322
RLI Corp.
5.95% due 01/15/2014			20,000		19,750
Sun Life Assurance Company of Canada 6.15% until 06/30/2012, then variable due 06/30/2022	CAD		42,000		41,106
The Travelers Companies, Inc.
5.90% due 06/02/2019		$	175,000		192,731
Transatlantic Holdings, Inc.
5.75% due 12/14/2015			170,000		151,962
Travelers Insurance Company Institutional Funding, Ltd.5.75% due 12/06/2011	GBP		54,000		90,992
USI Holdings Corp.
9.75% due 05/15/2015 (f)		$	225,000		183,656
Willis North America, Inc.
6.20% due 03/28/2017			195,000		184,109
					6,178,383
International Oil - 0.71%
ConocoPhillips Company
5.75% due 02/01/2019			200,000		214,936
EnCana Corp.
6.50% due 08/15/2034			255,000		275,053
6.50% due 05/15/2019			155,000		171,415
Gaz Capital for Gazprom
8.625% due 04/28/2034			175,000		183,767
Gaz Capital for Gazprom, EMTN
4.56% due 12/09/2012	EUR		150,000		210,683
Gaz Capital SA
7.288% due 08/16/2037		$	490,000		400,379
8.125% due 07/31/2014 (f)			100,000		103,125
8.146% due 04/11/2018			300,000		296,430

The accompanying notes are an integral part of the financial statements.

311

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
International Oil (continued)
Pemex Project Funding Master Trust
1.9294% due 06/15/2010 (b)(f)		$	215,000	$	214,463
5.75% due 03/01/2018			465,000		451,050
6.25% due 08/05/2013	EUR		150,000		230,093
Pemex Project Funding Master Trust, EMTN
7.50% due 12/18/2013	GBP		50,000		86,973
Petro-Canada
6.80% due 05/15/2038		$	125,000		132,301
Petroleos de Venezuela SA
5.25% due 04/12/2017			2,200,000		1,210,000
Petroleum Company of Trinidad & Tobago, Ltd.
9.75% due 08/14/2019			200,000		217,250
PF Export Receivables Master Trust
6.436% due 06/01/2015 (f)			48,417		50,572
Shell International Finance BV
6.375% due 12/15/2038			225,000		265,886
Transocean, Inc.
5.25% due 03/15/2013			225,000		236,906
Weatherford International, Ltd.
9.625% due 03/01/2019			265,000		321,938
XTO Energy, Inc.
4.625% due 06/15/2013			525,000		542,947
5.65% due 04/01/2016			380,000		397,956
YPF SA, MTNC
10.00% due 11/02/2028			220,000		204,050
					6,418,173
Internet Service Provider - 0.03%
Terremark Worldwide, Inc.
12.00% due 06/15/2017 (f)			250,000		262,813
Investment Companies - 0.10%
Credit Suisse Guernsey, Ltd. 5.86% until 05/15/2017, then variable due 05/29/2049			290,000		205,900
RAKIA Sukuk Company, Ltd.
2.1369% due 12/05/2012 (b)			200,000		177,400
Xstrata Finance Canada, Ltd.
5.50% due 11/16/2011 (f)			420,000		430,367
Xstrata Finance Canada, Ltd., EMTN
5.25% due 06/13/2017	EUR		80,000		109,527
					923,194
Leisure Time - 0.89%
AMC Entertainment, Inc.
8.75% due 06/01/2019		$	425,000		421,812
Ameristar Casinos, Inc.
9.25% due 06/01/2014 (f)			300,000		306,750
Cinemark USA, Inc.
8.625% due 06/15/2019 (f)			275,000		277,750
Cirsa Finance Luxembourg SA
8.75% due 05/15/2014 (f)	EUR		50,000		60,928
Harrah’s Operating Company, Inc.
10.00% due 12/15/2015 (f)		$	150,000		107,250
10.00% due 12/15/2018			300,000		210,000
Harrahs Operating Escrow LLC
11.25% due 06/01/2017 (f)			525,000		534,188
Isle of Capri Casinos, Inc.
7.00% due 03/01/2014			371,000		322,770
Lions Gate Entertainment Corp.
2.9375% due 10/15/2024		$	155,000	$	142,794
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 ^ (f)			50,000		22,000
MGM Mirage, Inc.
6.75% due 09/01/2012			250,000		196,250
8.375% due 02/01/2011			25,000		21,187
8.50% due 09/15/2010			475,000		460,750
11.125% due 11/15/2017 (f)			500,000		545,000
13.00% due 11/15/2013 (f)			100,000		111,500
Penn National Gaming, Inc.
6.75% due 03/01/2015			425,000		401,625
8.75% due 08/15/2019 (f)			175,000		173,688
Pinnacle Entertainment, Inc.
7.50% due 06/15/2015			475,000		413,250
8.25% due 03/15/2012			323,000		323,000
8.625% due 08/01/2017 (f)			425,000		418,625
Pokagon Gaming Authority
10.375% due 06/15/2014 (f)			650,000		656,500
Regal Cinemas Corp.
8.625% due 07/15/2019 (f)			300,000		303,000
Royal Caribbean Cruises, Ltd.
7.00% due 06/15/2013			100,000		88,750
Shingle Springs Tribal Gaming Authority
9.375% due 06/15/2015 (f)			800,000		568,000
Speedway Motorsports, Inc.
6.75% due 06/01/2013			160,000		154,800
8.75% due 06/01/2016 (f)			150,000		154,500
Vivendi
5.75% due 04/04/2013 (f)			410,000		420,096
Wynn Las Vegas LLC
6.625% due 12/01/2014			250,000		230,000
					8,046,763
Liquor - 0.01%
Carlsberg Breweries A/S, EMTN
6.00% due 05/28/2014	EUR		50,000		78,001
Constellation Brands, Inc.
8.375% due 12/15/2014		$	25,000		25,437
					103,438
Manufacturing - 0.30%
3M Company, MTN
4.65% due 12/15/2012			405,000		433,529
5.125% due 11/06/2009			95,000		95,920
5.70% due 03/15/2037			200,000		218,103
AGY Holding Corp.
11.00% due 11/15/2014			250,000		197,500
Cooper US, Inc.
6.10% due 07/01/2017			205,000		225,032
Danaher Corp.
5.40% due 03/01/2019			70,000		75,104
Danaher European Finance Company EHF
4.50% due 07/22/2013	EUR		50,000		71,939
General Dynamics Corp.
1.80% due 07/15/2011		$	150,000		150,598
4.50% due 08/15/2010			210,000		216,999
Honeywell International, Inc.
4.25% due 03/01/2013			210,000		220,501
5.30% due 03/01/2018			235,000		251,575

The accompanying notes are an integral part of the financial statements.

312

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Manufacturing (continued)
Sally Holdings LLC
9.25% due 11/15/2014		$	425,000	$	438,812
10.50% due 11/15/2016			75,000		77,813
					2,673,425
Medical-Hospitals - 0.41%
Community Health Systems, Inc.
8.875% due 07/15/2015			150,000		150,562
HCA, Inc.
8.50% due 04/15/2019 (f)			500,000		506,250
9.25% due 11/15/2016			450,000		455,625
HCA, Inc., PIK
9.625% due 11/15/2016			956,000		965,560
Health Management Associates, Inc.
3.70% due 08/16/2020			235,986		221,163
6.125% due 04/15/2016			575,000		513,188
Symbion, Inc.
11.00% due 08/23/2015			316,309		223,789
Tenet Healthcare Corp.
6.50% due 06/01/2012			225,000		223,604
United Surgical Partners International, Inc.
8.875% due 05/01/2017			450,000		423,000
					3,682,741
Metal & Metal Products - 0.22%
Clarendon Alumina Production, Ltd.
8.50% due 11/16/2021			100,000		71,211
Corp Nacional del Cobre de Chile
7.50% due 01/15/2019 (f)			230,000		276,294
Corp Nacional del Cobre de Chile, Series REGS
7.50% due 01/15/2019			130,000		155,564
Gibraltar Industries, Inc., Series B
8.00% due 12/01/2015			1,075,000		905,687
Hawk Corp.
8.75% due 11/01/2014			331,000		331,414
Southern Copper Corp.
7.50% due 07/27/2035			200,000		198,983
					1,939,153
Mining - 0.49%
Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/2017			750,000		781,875
Placer Dome, Inc.
6.45% due 10/15/2035			315,000		338,611
Rio Tinto Finance USA, Ltd.
5.875% due 07/15/2013			455,000		483,415
8.95% due 05/01/2014			675,000		786,698
Teck Resources, Ltd.
9.75% due 05/15/2014			25,000		27,000
10.25% due 05/15/2016			525,000		580,125
10.75% due 05/15/2019			525,000		597,844
Vale Overseas, Ltd.
6.25% due 01/23/2017			645,000		683,594
6.875% due 11/21/2036			163,000		163,196
					4,442,358
Oil & Gas Drilling - 0.02%
Nabors Industries, Inc.
9.25% due 01/15/2019			190,000		222,989
Paper - 0.39%
Boise Cascade LLC
7.125% due 10/15/2014		$	465,000	$	312,131
Cellu Tissue Holdings, Inc.
11.50% due 06/01/2014 (f)			300,000		313,500
Celulosa Arauco y Constitucion SA
5.125% due 07/09/2013			80,000		81,377
8.625% due 08/15/2010			220,000		231,074
Clearwater Paper Corp.
10.625% due 06/15/2016			200,000		214,250
Domtar Corp.
5.375% due 12/01/2013			175,000		161,875
7.125% due 08/15/2015			400,000		385,000
9.50% due 08/01/2016			50,000		50,250
Georgia Pacific LLC
8.25% due 05/01/2016 (f)			475,000		479,750
Georgia-Pacific Corp.
7.00% due 01/15/2015 (f)			100,000		96,250
7.125% due 01/15/2017 (f)			400,000		384,000
International Paper Company
9.375% due 05/15/2019			250,000		280,926
Rock-Tenn Company
8.20% due 08/15/2011			250,000		257,500
9.25% due 03/15/2016			225,000		236,812
WPP PLC, EMTN
6.625% due 05/12/2016	EUR		50,000		73,772
					3,558,467
Petroleum Services - 0.38%
BG Energy Capital PLC, EMTN
5.125% due 12/07/2017	GBP		50,000		84,779
5.875% due 11/13/2012			25,000		43,729
Bill Barrett Corp.
9.875% due 07/15/2016		$	300,000		312,000
Centrica PLC, EMTN
7.125% due 12/09/2013	EUR		50,000		82,067
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015		$	100,000		95,000
7.75% due 05/15/2017			750,000		708,750
Complete Production Services, Inc.
8.00% due 12/15/2016			1,275,000		1,093,312
Ecopetrol SA
7.625% due 07/23/2019 (f)			100,000		106,630
Helix Energy Solutions Group, Inc.
3.25% due 12/15/2025			459,000		390,724
Premcor Refining Group, Inc.
6.75% due 02/01/2011			120,000		124,425
SeaRiver Maritime, Inc. zero coupon due 09/01/2012			315,000		291,725
Smith International, Inc.
8.625% due 03/15/2014			95,000		108,029
					3,441,170
Pharmaceuticals - 0.15%
Eli Lilly & Company
5.55% due 03/15/2037			205,000		215,890
Merck KGAA
4.75% due 11/26/2010	EUR		50,000		73,988
Omnicare, Inc.
6.75% due 12/15/2013		$	200,000		189,000

The accompanying notes are an integral part of the financial statements.

313

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Pharmaceuticals (continued)
Teva Pharmaceutical Finance LLC
5.55% due 02/01/2016		$	325,000	$	347,145
Watson Pharmaceuticals, Inc.
6.125% due 08/15/2019			210,000		215,904
Watson Pharmaceuticals. Inc.
5.00% due 08/15/2014			300,000		303,538
					1,345,465
Pipelines - 0.32%
Boardwalk Pipelines LP
5.75% due 09/15/2019			205,000		203,136
Buckeye Partners LP
5.50% due 08/15/2019			155,000		157,370
6.05% due 01/15/2018			140,000		145,573
Enterprise Products Operating LLC
9.75% due 01/31/2014			130,000		156,487
Magellan Midstream Partners LP
6.55% due 07/15/2019			145,000		160,057
Plains All American Pipeline LP
4.25% due 09/01/2012			195,000		199,100
TEPPCO Partners LP
5.90% due 04/15/2013			300,000		322,759
7.55% due 04/15/2038			485,000		566,316
Texas Gas Transmission LLC
5.50% due 04/01/2013 (f)			970,000		986,489
					2,897,287
Publishing - 0.33%
Bertelsmann AG
4.75% due 09/26/2016	EUR		50,000		68,467
Local Insight Regatta Holdings, Inc.
11.00% due 12/01/2017		$	675,000		256,500
Nielsen Finance LLC
10.00% due 08/01/2014			225,000		212,625
11.50% due 05/01/2016			100,000		99,500
11.625% due 02/01/2014			450,000		446,625
Nielsen Finance LLC, Discount Notes
zero coupon, step up to 12.50% on
08/01/2011 due 08/01/2016			775,000		542,500
Sun Media Corp.
7.625% due 02/15/2013			325,000		220,188
TL Acquisitions, Inc.
10.50% due 01/15/2015 (f)			225,000		204,750
13.25 due 07/15/2015 (f)			350,000		295,750
Valassis Communications, Inc.
8.25% due 03/01/2015			675,000		590,625
					2,937,530
Railroads & Equipment - 0.22%
American Railcar Industries, Inc.
7.50% due 03/01/2014			350,000		324,625
Canadian National Railway Company
6.25% due 08/01/2034			249,000		282,091
CSX Corp.
5.75% due 03/15/2013			275,000		291,309
Grupo Transportacion Ferroviaria Mexicana, SA de CV 9.375% due 05/01/2012			125,000		123,125
Kansas City Southern Railway Company
13.00% due 12/15/2013			125,000		140,937
Norfolk Southern Corp.
5.59% due 05/17/2025		$	30,000	$	29,444
5.75% due 04/01/2018			95,000		101,596
7.25% due 02/15/2031			115,000		138,931
Union Pacific Corp.
5.70% due 08/15/2018			205,000		218,963
7.875% due 01/15/2019			280,000		340,536
					1,991,557
Real Estate - 0.57%
AMB Property LP, MTN
5.90% due 08/15/2013			45,000		41,922
6.30% due 06/01/2013			205,000		198,806
AvalonBay Communities, Inc., MTN
4.95% due 03/15/2013			60,000		60,152
6.125% due 11/01/2012			185,000		195,582
6.625% due 09/15/2011			265,000		281,504
Camden Property Trust
4.375% due 01/15/2010			90,000		90,620
Duke Realty LP
6.25% due 05/15/2013			230,000		227,161
Federal Realty Investment Trust
6.00% due 07/15/2012			135,000		139,246
Hospitality Properties Trust
5.625% due 03/15/2017			225,000		190,864
7.875% due 08/15/2014			145,000		142,885
Host Hotels & Resorts LP
2.625% due 04/15/2027 (f)			475,000		416,812
Host Marriott LP, Series Q
6.75% due 06/01/2016			525,000		488,250
Kimco Realty Corp., MTN
4.904% due 02/18/2015			60,000		52,959
Mack-Cali Realty Corp.
7.75% due 08/15/2019			150,000		152,062
Mack-Cali Realty LP
5.80% due 01/15/2016			75,000		68,654
ProLogis
7.625% due 08/15/2014			200,000		197,905
Reckson Operating Partnership
6.00% due 03/31/2016			210,000		170,406
Regency Centers LP
5.875% due 06/15/2017			120,000		108,261
Simon Property Group LP, REIT
4.60% due 06/15/2010			235,000		239,634
5.30% due 05/30/2013			90,000		91,508
5.75% due 12/01/2015			445,000		460,920
6.75% due 05/15/2014			155,000		166,088
10.35% due 04/01/2019			35,000		43,190
Ventas Realty LP
6.50% due 06/01/2016			470,000		435,925
Ventas Realty LP, Series 1
6.50% due 06/01/2016			125,000		115,938
WEA Finance LLC
6.75% due 09/02/2019 (f)			220,000		216,695
7.50% due 06/02/2014 (f)			175,000		187,994
					5,181,943
Retail - 0.46%
CVS Caremark Corp.
2.15% due 09/10/2010 (b)			360,000		362,864

The accompanying notes are an integral part of the financial statements.

314

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Retail (continued)
CVS Caremark Corp. (continued)
6.60% due 03/15/2019		$	300,000	$	339,689
Federated Retail Holdings, Inc.
5.35% due 03/15/2012			280,000		266,000
Ferrellgas Escrow LLC
6.75% due 05/01/2014			250,000		229,375
Home Depot, Inc.
3.75% due 09/15/2009			115,000		115,060
5.20% due 03/01/2011			80,000		83,409
Inergy LP/Inergy Finance Corp.
8.75% due 03/01/2015			250,000		252,500
JC Penney Company, Inc.
9.00% due 08/01/2012			400,000		428,000
Leslie’s Poolmart
7.75% due 02/01/2013			350,000		345,625
Limited Brands, Inc.
6.90% due 07/15/2017			25,000		22,815
PPR, EMTN
8.625% due 04/03/2014	EUR		50,000		82,998
Sears Roebuck Acceptance
6.75% due 08/15/2011		$	175,000		171,500
7.00% due 02/01/2011			200,000		198,000
Staples, Inc.
9.75% due 01/15/2014			420,000		493,033
Sunstate Equipment Company LLC
10.50% due 04/01/2013 (f)			450,000		337,500
Target Corp.
5.875% due 07/15/2016			305,000		333,136
TJX Companies, Inc.
6.95% due 04/15/2019			45,000		52,925
					4,114,429
Retail Grocery - 0.23%
Couche-Tard US LP
7.50% due 12/15/2013			300,000		300,000
Delhaize Group
5.625% due 06/27/2014	EUR		50,000		73,114
6.50% due 06/15/2017		$	250,000		268,334
Great Atlantic & Pacific Tea Company
11.375% due 08/01/2015 (f)			200,000		197,500
Ingles Markets, Inc.
8.875% due 05/15/2017			375,000		376,875
Kroger Company
6.15% due 01/15/2020			130,000		142,743
6.80% due 04/01/2011			170,000		181,958
7.50% due 01/15/2014			117,000		134,565
8.05% due 02/01/2010			350,000		359,536
					2,034,625
Retail Trade - 0.46%
ACE Hardware Corp.
9.125% due 06/01/2016 (f)			475,000		484,500
Burlington Coat Factory Warehouse Corp.
11.125% due 04/15/2014			400,000		375,000
Dollar General Corp., PIK
11.875% due 07/15/2017			550,000		617,375
Dollarama Group LP
8.875% due 08/15/2012			425,000		416,500
Home Depot, Inc.
5.40% due 03/01/2016			500,000		517,276
HSN, Inc.
11.25% due 08/01/2016		$	125,000	$	130,000
Limited Brands, Inc.
8.50% due 06/15/2019 (f)			250,000		253,258
Macys Retail Holdings, Inc.
10.625% due 11/01/2010			400,000		408,476
Nordstrom, Inc.
6.75% due 06/01/2014			50,000		54,000
Safeway, Inc.
5.00% due 08/15/2019			195,000		195,445
6.25% due 03/15/2014			40,000		43,982
Target Corp.
7.50% due 08/15/2010			150,000		159,214
The Pantry, Inc.
7.75% due 02/15/2014			550,000		490,875
					4,145,901
Sanitary Services - 0.18%
Allied Waste North America, Inc.
7.875% due 04/15/2013			225,000		232,875
Casella Waste Systems, Inc.
9.75% due 02/01/2013			650,000		575,250
Republic Services, Inc.
5.50% due 09/15/2019 (f)(j)			260,000		258,141
Waste Management, Inc.
6.10% due 03/15/2018			480,000		502,721
7.375% due 05/15/2029			15,000		16,749
					1,585,736
Semiconductors - 0.15%
Advanced Micro Devices, Inc.
6.00% due 05/01/2015			450,000		302,062
Avago Technologies Finance
10.125% due 12/01/2013			375,000		391,875
Flextronics International, Ltd.
6.25% due 11/15/2014			68,000		62,560
STATS ChipPAC, Ltd.
6.75% due 11/15/2011			100,000		100,125
7.50% due 07/19/2010			500,000		506,250
					1,362,872
Software - 0.05%
Oracle Corp.
5.00% due 01/15/2011			355,000		372,713
SS&C Technologies, Inc.
11.75% due 12/01/2013			100,000		103,125
					475,838
Steel - 0.45%
Allegheny Technologies, Inc.
9.375% due 06/01/2019			165,000		180,937
ArcelorMittal
5.375% due 06/01/2013			965,000		972,553
9.375% due 06/03/2016	EUR		50,000		80,990
Evraz Group SA
8.875% due 04/24/2013		$	530,000		483,625
Metals USA Holdings Corp., PIK
7.8469% due 07/01/2012			53,519		36,393
Metals USA, Inc.
11.125% due 12/01/2015			175,000		160,125

The accompanying notes are an integral part of the financial statements.

315

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Steel (continued)
Reliance Steel & Aluminum Company
6.20% due 11/15/2016		$	600,000	$	545,177
Ryerson, Inc.
12.00% due 11/01/2015			450,000		414,000
Steel Capital SA
9.75% due 07/29/2013			250,000		241,875
Steel Dynamics, Inc.
6.75% due 04/01/2015			140,000		130,550
7.375% due 11/01/2012			225,000		221,063
Tube City IMS Corp.
9.75% due 02/01/2015			675,000		486,000
Usiminas Commercial, Ltd.
7.25% due 01/18/2018			100,000		107,250
					4,060,538
Telecommunications Equipment &
Services - 1.66%
American Tower Corp.
7.25% due 05/15/2019 (f)			300,000		294,750
Anixter, Inc.
10.00% due 03/15/2014			300,000		309,750
Broadview Networks Holdings, Inc.
11.375% due 09/01/2012			425,000		365,500
CC Holdings GS V LLC
7.75% due 05/01/2017 (f)			800,000		808,000
Citizens Communications Company
6.25% due 01/15/2013			250,000		235,937
Deutsche Telekom International Finance BV
8.125% due 05/29/2012	EUR		35,000		56,867
Deutsche Telekom International Finance BV, EMTN
4.50% due 10/25/2013			100,000		149,420
7.125% due 09/26/2012	GBP		80,000		143,094
Deutsche Telekom International Finance BV
8.50% due 06/15/2010		$	330,000		347,082
Digicel Group, Ltd.
8.875% due 01/15/2015			140,000		124,950
Digicel, Ltd.
9.25% due 09/01/2012 (f)			775,000		773,062
Dycom Industries, Inc.
8.125% due 10/15/2015			275,000		239,250
GC Impsat Holdings I PLC
9.875% due 02/15/2017			850,000		875,500
GCI, Inc.
7.25% due 02/15/2014			475,000		442,344
Hughes Network Systems LLC
9.50% due 04/15/2014			275,000		279,125
Intelsat Bermuda, Ltd.
11.25% due 06/15/2016			325,000		338,812
11.25% due 02/04/2017 (f)			625,000		590,625
11.50% due 02/04/2017 (f)			371,875		317,953
Intelsat Corp.
9.25% due 06/15/2016			300,000		303,750
Intelsat Subsidiary Holding Company, Ltd.
8.875% due 01/15/2015 (f)			300,000		300,750
iPCS, Inc.
2.6081% due 05/01/2013 (b)(f)			125,000		102,500
3.7331% due 05/01/2014 (b)			481,235		347,692
Orascom Telecom Finance
7.875% due 02/08/2014 (f)			225,000		202,500
Orascom Telecom Finance (continued)
7.875% due 02/08/2014 (f)		$	110,000	$	99,000
7.875% due 02/08/2014			140,000		126,000
OTE PLC, GMTN
4.625% due 05/20/2016	EUR		100,000		145,344
Paetec Holding Corp.
8.875% due 06/30/2017 (f)		$	350,000		333,375
9.50% due 07/15/2015			375,000		323,438
SBA Communications Corp.
1.875% due 05/01/2013			164,000		145,312
4.00% due 10/01/2014 (f)			335,000		345,888
SBA Telecommunications, Inc.
8.00% due 08/15/2016 (f)			100,000		99,750
8.25% due 08/15/2019 (f)			75,000		75,375
SBC Communications, Inc.
6.45% due 06/15/2034			355,000		376,192
Telemar Norte Leste SA
9.50% due 04/23/2019 (f)			100,000		117,375
Telesat Canada
11.00% due 11/01/2015			850,000		867,000
12.50% due 11/01/2017			300,000		309,000
TELUS Corp.
5.95% due 04/15/2015	CAD		35,000		35,101
Verizon Global Funding Corp.
7.25% due 12/01/2010		$	110,000		117,157
7.75% due 12/01/2030			285,000		343,087
Verizon Virginia, Inc., Series A
4.625% due 03/15/2013			945,000		974,008
Verizon Wireless Capital LLC
8.75% due 12/18/2015	EUR		50,000		89,801
West Corp.
9.50% due 10/15/2014 (f)		$	425,000		392,063
Wind Acquisition Finance SA
10.75% due 12/01/2015 (f)			750,000		806,250
11.75% due 07/15/2017			700,000		759,500
11.75% due 07/15/2017 (f)	EUR		65,000		96,445
					14,925,674
Telephone - 1.38%
AT&T Corp.
7.30% due 11/15/2011 (b)		$	150,000		166,746
AT&T, Inc.
4.95% due 01/15/2013			350,000		374,121
5.30% due 11/15/2010			125,000		130,426
5.80% due 02/15/2019			590,000		633,412
5.875% due 04/28/2017	GBP		50,000		88,023
6.70% due 11/15/2013		$	285,000		322,815
British Telecommunications PLC
5.15% due 01/15/2013			530,000		549,164
Cincinnati Bell, Inc.
7.00% due 02/15/2015			450,000		423,000
France Telecom SA
7.75% due 03/01/2011			320,000		347,801
France Telecom SA, EMTN
7.25% due 01/28/2013	EUR		75,000		122,031
Frontier Communications Corp.
8.25% due 05/01/2014		$	425,000		421,812

The accompanying notes are an integral part of the financial statements.

316

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (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	$	171,314
KONINKLIJKE KPN NV, MTN
7.50% due 02/04/2019	EUR		50,000		86,023
Level 3 Financing, Inc.
9.25% due 11/01/2014		$	475,000		391,875
Nordic Telephone Company Holdings
8.25% due 05/01/2016 (f)	EUR		100,000		149,811
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		$	450,000		434,250
Qwest Corp.
3.8794% due 06/15/2013 (b)			125,000		115,625
7.50% due 10/01/2014			175,000		173,469
8.375% due 05/01/2016 (f)			300,000		303,000
Royal KPN NV, EMTN
4.50% due 03/18/2013	EUR		80,000		118,933
Sprint Capital Corp.
6.875% due 11/15/2028		$	575,000		418,312
7.625% due 01/30/2011			130,000		130,163
8.375% due 03/15/2012			500,000		500,625
8.75% due 03/15/2032			950,000		788,500
Sprint Nextel Corp.
1.0013% due 06/28/2010 (b)			105,000		100,708
6.00% due 12/01/2016			450,000		378,000
8.375% due 08/15/2017			800,000		762,000
Telecom Italia Capital SA
4.00% due 01/15/2010			285,000		287,085
5.25% due 11/15/2013			750,000		784,688
6.175% due 06/18/2014			195,000		211,192
Telecom Italia Finance SA, EMTN
6.875% due 01/24/2013	EUR		90,000		142,479
Telecom Italia SpA, EMTN
7.875% due 01/22/2014			50,000		82,576
8.25% due 03/21/2016			60,000		103,632
Telefonica Emisiones SAU
5.877% due 07/15/2019		$	300,000		326,343
5.984% due 06/20/2011			185,000		196,992
6.221% due 07/03/2017			275,000		304,003
Telekom Finanzmanagement GmbH
6.375% due 01/29/2016	EUR		50,000		78,683
Telemar Norte Leste SA, Series REGS
9.50% due 04/23/2019		$	200,000		235,000
TPSA Eurofinance France SA, EMTN
6.00% due 05/22/2014	EUR		50,000		77,646
Valor Telecommunications Enterprise LLC
7.75% due 02/15/2015		$	225,000		226,969
Verizon Communications, Inc.
6.35% due 04/01/2019			95,000		105,494
6.90% due 04/15/2038			260,000		297,522
Windstream Corp.
8.625% due 08/01/2016			325,000		326,219
					12,388,482
Tires & Rubber - 0.00%
Cooper-Standard Automotive, Inc.
8.375% due 12/15/2014 ^			425,000		23,375
Tobacco - 0.21%
Alliance One International, Inc.
10.00% due 07/15/2016 (f)			225,000		222,187
Alliance One International, Inc. (continued)
10.00% due 07/15/2016 (f)		$	75,000	$	74,063
Altria Group, Inc.
8.50% due 11/10/2013			680,000		786,308
9.25% due 08/06/2019			160,000		193,107
Imperial Tobacco Finance PLC, EMTN
4.375% due 11/22/2013	EUR		150,000		217,163
6.875% due 06/13/2012	GBP		49,000		85,206
Philip Morris International, Inc., GMTN
5.625% due 09/06/2011	EUR		100,000		152,329
Reynolds American, Inc.
7.25% due 06/01/2013		$	170,000		181,217
					1,911,580
Transportation - 0.36%
Autoroutes du Sud de la France, EMTN
7.375% due 03/20/2019	EUR		50,000		82,768
Bombardier, Inc.
6.30% due 05/01/2014 (f)		$	575,000		531,875
6.75% due 05/01/2012 (f)			200,000		195,500
7.45% due 05/01/2034 (f)			300,000		237,000
8.00% due 11/15/2014 (f)			575,000		561,344
Bristow Group, Inc.
6.125% due 06/15/2013			200,000		188,000
7.50% due 09/15/2017			400,000		378,000
Burlington Northern Santa Fe Corp.
5.65% due 05/01/2017			196,000		208,025
6.15% due 05/01/2037			436,000		480,638
Canadian National Railway Company
6.375% due 11/15/2037			65,000		75,863
Canadian Pacific Railway Company
7.25% due 05/15/2019			260,000		296,956
					3,235,969
Utility Service - 0.25%
Consumers Energy Company, Series J
6.00% due 02/15/2014			160,000		174,694
PNM Resources, Inc.
9.25% due 05/15/2015			550,000		533,500
Public Service Electric & Gas Company
5.70% due 12/01/2036			285,000		306,307
Suez Environnement SA, EMTN
6.25% due 04/08/2019	EUR		100,000		162,397
Veolia Environnement
5.25% due 06/03/2013		$	360,000		377,173
6.00% due 06/01/2018			430,000		458,551
Veolia Environnement, EMTN
4.875% due 05/28/2013	EUR		50,000		75,134
4.875% due 05/28/2013			35,000		52,594
5.25% due 04/24/2014			50,000		76,068
5.875% due 02/01/2012			30,000		45,897
					2,262,315
TOTAL CORPORATE BONDS (Cost $311,277,036)				$	318,901,891
CONVERTIBLE BONDS - 0.52%
Air Travel - 0.07%
Airtran Holdings, Inc.
7.00% due 07/01/2023		$	328,000		325,130

The accompanying notes are an integral part of the financial statements.

317

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
CONVERTIBLE BONDS (continued)
Air Travel (continued)
JetBlue Airways Corp.
3.75% due 03/15/2035	$	275,000	$	268,125
				593,255
Automobiles - 0.11%
Ford Motor Company
4.25% due 12/15/2036		914,000		953,988
Cable & Television - 0.03%
Sinclair Broadcast Group, Inc.
3.00% due 05/15/2027		322,000		287,788
Coal - 0.02%
Peabody Energy Corp.
4.75% due 12/15/2066		200,000		160,000
Financial Services - 0.13%
E*Trade Financial Corp., Series A zero coupon due 08/31/2019		547,000		941,644
NASDAQ OMX Group, Inc.
2.50% due 08/15/2013		244,000		209,840
				1,151,484
Real Estate - 0.02%
Kilroy Realty LP
3.25% due 04/15/2012 (f)		238,000		205,669
Semiconductors - 0.04%
Advanced Micro Devices, Inc.
5.75% due 08/15/2012		475,000		381,781
Steel - 0.02%
Steel Dynamics, Inc.
5.125% due 06/15/2014		153,000		187,043
Telecommunications Equipment &
Services - 0.08%
Leap Wireless International, Inc.
4.50% due 07/15/2014		700,000		513,074
Lucent Technologies, Inc., Series B
2.875% due 06/15/2025		225,000		180,066
NII Holdings, Inc.
2.75% due 08/15/2025		70,000		68,162
				761,302
TOTAL CONVERTIBLE BONDS (Cost $3,304,364)			$	4,682,310
MUNICIPAL BONDS - 0.31%
Connecticut - 0.01%
Connecticut State Development Authority
5.25% due 05/01/2031		95,000		96,685
District of Columbia - 0.00%
District of Columbia
4.75% due 06/01/2031		30,000		29,797
Georgia - 0.06%
Atlanta Water & Wastewater Revenue
5.50% due 11/01/2017		220,000		231,959
De Kalb County Water and Sewer Revenue
5.00% due 10/01/2035		325,000		344,214
				576,173
Illinois - 0.05%
Chicago Illinois Transit Authority, Series A
6.899% due 12/01/2040	$	245,000	$	279,060
Chicago Metropolitan Water Reclamation District
5.72% due 12/01/2038		110,000		118,365
				397,425
Kansas - 0.01%
Kansas Development Finance Authority
5.501% due 05/01/2034		120,000		118,967
New York - 0.04%
Metropolitan Transportation Authority
7.336% due 11/15/2039		55,000		66,902
New York City Housing Development Corp.
6.42% due 11/01/2027		115,000		104,356
New York State Urban Development Corp.
5.50% due 03/15/2018		160,000		187,251
				358,509
North Carolina - 0.04%
Charlotte Water and Sewer Systems
4.75% due 07/01/2033		370,000		379,372
Oregon - 0.01%
State of Oregon
5.892% due 06/01/2027		60,000		64,262
Pennsylvania - 0.03%
Commonwealth of Pennsylvania
5.00% due 01/01/2018		240,000		268,370
Utah - 0.03%
Utah Transit Authority Sales Tax Revenue
5.25% due 06/15/2038		270,000		283,149
West Virginia - 0.03%
Tobacco Settlement Finance Authority of West Virginia
7.467% due 06/01/2047		315,000		221,754
TOTAL MUNICIPAL BONDS (Cost $2,782,887)			$	2,794,463
COLLATERALIZED MORTGAGE
OBLIGATIONS - 3.42%
American Tower Trust, Series 2007-1A, Class D
5.9568% due 04/15/2037 (f)		350,000		318,500
Banc of America Commercial Mortgage, Inc., Series 2003-1, Class A1
3.878% due 09/11/2036		158,355		160,224
Banc of America Commercial Mortgage, Inc., Series 2003-1, Class A2
4.648% due 09/11/2036		796,000		801,506
Banc of America Commercial Mortgage, Inc., Series 2005-3, Class A2
4.501% due 07/10/2043		640,000		638,775
Banc of America Mortgage Securities, Series 2004-A, Class 2A2
5.4508% due 02/25/2034 (b)		122,327		109,211
Banc of America Mortgage Securities, Series 2004-D, Class 2A2
3.8826% due 05/25/2034 (b)		67,168		62,647
Banc of America Mortgage Securities, Series 2004-H, Class 2A2
4.31% due 09/25/2034 (b)		156,851		149,654

The accompanying notes are an integral part of the financial statements.

318

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Banc of America Mortgage Securities, Series 2004-I, Class 3A2
4.8625% due 10/25/2034 (b) $58,571 $53,537
Banc of America Mortgage Securities, Series 2005-J, Class 2A1
5.0694% due 11/25/2035 (b)		351,508		276,620
Banc of America Mortgage Securities, Series 2005-J, Class 3A1
5.2351% due 11/25/2035 (b)		179,439		130,781
Bear Stearns Commercial Mortgage Securities, Series 1998-C1, Class A2
6.44% due 06/16/2030		1,941		1,939
Bear Stearns Commercial Mortgage Securities, Series 2002-TOP8, Class A2
4.83% due 08/15/2038		320,000		325,485
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A1
5.085% due 12/11/2040		350,340		355,057
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4
4.674% due 06/11/2041		578,000		559,711
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A1
4.498% due 09/11/2042		40,978		41,283
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class AAB
4.804% due 09/11/2042		462,000		464,547
Bear Stearns Commercial Mortgage Securities, Series 2005-T18, Class A1
4.274% due 02/13/2042		90,572		90,541
Bear Stearns Commercial Mortgage Securities, Series 2005-T20, Class A1
4.94% due 10/12/2042		9,247		9,321
Bear Stearns Commercial Mortgage Securities, Series 2006-PW12, Class A4
5.9029% due 09/11/2038 (b)		60,000		56,304
Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class AAB
5.53% due 09/11/2041		50,000		49,557
Bear Stearns Commercial Mortgage Securities, Series 2006-PWR12, Class A1
5.546% due 09/11/2038		106,830		108,704
Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class AAB
5.315% due 02/11/2044		500,000		470,515
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A1
5.282% due 06/11/2050		437,330		440,996
Bear Stearns Commercial Mortgage Securities, Series 2007-PW17, Class A4
5.694% due 06/11/2050		50,000		44,189
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A4
5.742% due 09/11/2042		180,000		166,728
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class AAB
5.608% due 10/15/2048 (f)		285,000		275,933
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A1
5.0468% due 07/15/2044		149,305		149,820
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.399% due 09/15/2020 (b) $50,000 $48,369
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5
5.617% due 10/15/2048		170,000		145,757
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class ASB
5.278% due 12/11/2049		45,000		41,190
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A3
6.2199% due 03/10/2017 (b)		1,270,000		1,068,751
Commercial Mortgage Pass Through Certificates, Series 2007-C9, Class A4
6.01% due 12/10/2049 (b)		230,000		202,176
Credit Suisse Mortgage Capital Certificates, Series 2007-C4, Class A1
5.54% due 09/15/2039		83,528		85,129
Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A1
4.771% due 09/15/2039		157,149		158,837
Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A3
5.467% due 09/15/2039		1,205,000		917,599
CS First Boston Mortgage Securities Corp., Series 2005-C2, Class A4
4.832% due 04/15/2037		575,000		556,217
Federal Home Loan Mortgage Corp., Series 199, Class PO zero coupon PO due 08/01/2028		7,040		6,213
Federal Home Loan Mortgage Corp., Series 2003-2586, Class NJ
4.50% due 08/15/2016		147,790		152,679
Federal Home Loan Mortgage Corp., Series 2003-2614, Class IH
4.50% IO due 05/15/2016		111,357		4,482
Federal Home Loan Mortgage Corp., Series 2003-2627, Class IE
4.50% IO due 04/15/2018		33,031		2,261
Federal Home Loan Mortgage Corp., Series 2003-2631, Class KI
4.50% IO due 01/15/2015		8,710		30
Federal Home Loan Mortgage Corp., Series 2003-2681, Class PC
5.00% due 01/15/2019		133,860		136,428
Federal Home Loan Mortgage Corp., Series 2003-2686, Class JG
5.50% due 04/15/2028		847,000		858,382
Federal Home Loan Mortgage Corp., Series 2003-41, Class YV
5.50% due 04/25/2014		195,799		208,268
Federal Home Loan Mortgage Corp., Series 2004-2882, Class YB
5.00% due 10/15/2027		400,000		413,890
Federal Home Loan Mortgage Corp., Series 2005-2934, Class NB
5.00% due 01/15/2028		106,000		110,073
Federal Home Loan Mortgage Corp., Series 2005-R003, Class VA
5.50% due 08/15/2016		407,705		432,942

The accompanying notes are an integral part of the financial statements.

319

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Federal Home Loan Mortgage Corp., Series 2006-3123, Class VB
6.00% due 09/15/2013	$	172,499	$	180,477
Federal Home Loan Mortgage Corp., Series 2006-3152, Class DA
6.00% due 09/15/2025		79,308		81,030
Federal Home Loan Mortgage Corp., Series 2006-3177, Class PA
6.00% due 12/15/2026		175,416		178,560
Federal Home Loan Mortgage Corp., Series 2006-3195, Class PN
6.50% due 08/15/2030		566,660		589,224
Federal Home Loan Mortgage Corp., Series 2006-R007, Class VA
6.00% due 09/15/2016		149,312		157,944
Federal Home Loan Mortgage Corp., Series 2568, Class KA
4.25% due 12/15/2021		172,621		176,446
Federal Home Loan Mortgage Corp., Series 2688, Class DE
4.50% due 02/15/2020		226,899		233,370
Federal Home Loan Mortgage Corp., Series 3354, Class PA
5.50% due 07/15/2028		511,076		530,271
Federal Home Loan Mortgage Corp., Series R005, Class AB
5.50% due 12/15/2018		355,428		369,194
Federal Home Loan Mortgage Corp., Series R006, Class AK
5.75% due 12/15/2018		412,254		426,531
Federal Home Loan Mortgage Corp., Series R013, Class AB
6.00% due 12/15/2021		149,091		155,067
Federal Home Loan Mortgage Corp., Stated Final, Series SF4, Class C
3.32% due 12/15/2011		6,371		6,358
Federal National Mortgage Association
5.00% IO due 10/01/2036		1,369,031		248,993
Federal National Mortgage Association, Series 2002-84, Class VA
5.50% due 11/25/2013		136,929		144,687
Federal National Mortgage Association, Series 2003-32, Class PG
5.00% due 10/25/2027		316,996		319,817
Federal National Mortgage Association, Series 2003-40, Class NI
5.50% IO due 11/25/2028		10,219		202
Federal National Mortgage Association, Series 2003-88, Class TE
4.50% due 11/25/2014		204,043		203,699
Federal National Mortgage Association, Series 2004-21, Class AC
4.00% due 05/25/2016		32,178		32,815
Federal National Mortgage Association, Series 2006-3136, Class PB
6.00% due 01/15/2030		411,000		430,212
Federal National Mortgage Association, Series 2006-B2, Class AB
5.50% due 05/25/2014		193,101		198,292
Federal National Mortgage Association, Strip, Series 319, Class 2
6.50% IO due 02/01/2032		26,810		4,859
GE Capital Commercial Mortgage Corp., Series 2001-1, Class A2
6.531% due 05/15/2033		465,000		478,977
GE Capital Commercial Mortgage Corp., Series 2005-C4, Class A1
5.082% due 11/10/2045		226,361		230,197
GMAC Commercial Mortgage Securities, Inc., Series 2001-C2, Class A2
6.70% due 04/15/2034		49,047		51,796
Government National Mortgage Association, Series 1997-16, Class PL
6.50% due 10/20/2027		293,473		314,589
Government National Mortgage Association, Series 1998-12, Class Z
6.50% due 05/20/2028		34,839		37,471
Government National Mortgage Association, Series 1998-6, Class EA zero coupon PO due 03/16/2028		26,936		23,468
Government National Mortgage Association, Series 2001-48, Class PC
6.50% due 10/20/2031		219,439		234,669
Government National Mortgage Association, Series 2001-56, Class PH
6.50% due 11/20/2031		197,365		211,971
Government National Mortgage Association, Series 2004-43, Class A
2.822% due 12/16/2019		536,364		541,697
Government National Mortgage Association, Series 2004-43, Class D
4.994% due 03/16/2030 (b)		56,000		58,840
Government National Mortgage Association, Series 2004-44, Class PC
5.50% due 05/20/2031		576,000		600,564
Government National Mortgage Association, Series 2008-8, Class A
3.612% due 11/16/2027		941,276		953,613
Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A3
4.344% due 06/10/2036		23,499		23,481
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A2
4.305% due 08/10/2042		236,840		236,542
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A3
4.569% due 08/10/2042 (b)		250,000		244,565
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class AAB
4.619% due 08/10/2042 (b)		146,000		145,576
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A1
5.233% due 03/10/2039		244,576		248,402
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4
5.444% due 03/10/2039		50,000		42,662
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4
5.553% due 04/10/2038 (b)		630,000		553,387

The accompanying notes are an integral part of the financial statements.

320

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4
5.3443% due 12/15/2044 (b)	$	1,050,000	$	996,425
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIB2, Class A2
6.244% due 04/15/2035		218,890		222,740
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC, Class A3
6.26% due 03/15/2033		255,659		265,925
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2003-LN1, Class A1
4.134% due 10/15/2037		26,132		26,570
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class ASB
4.824% due 10/15/2042 (b)		621,000		632,715
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB14, Class A4
5.481% due 12/12/2044 (b)		65,000		55,861
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB17, Class A1
5.279% due 12/12/2043		158,382		161,619
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A1
5.17% due 05/15/2047		179,041		182,129
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A3
5.336% due 05/15/2047		470,000		400,047
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4
6.0065% due 06/15/2049 (b)		445,000		376,366
JPMorgan Mortgage Acquisition Corp., Series 2007-CH1, Class AV2
0.3256% due 11/25/2036		82,843		74,076
LB-UBS Commercial Mortgage Trust, Series 2003-C7, Class A3
4.559% due 09/15/2027 (b)		475,000		478,970
LB-UBS Commercial Mortgage Trust, Series 2004-C2, Class A2
3.246% due 03/15/2029		251,042		251,406
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class A4
4.742% due 02/15/2030		133,000		126,608
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A1
5.018% due 02/15/2031		190,303		192,213
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A4
5.156% due 02/15/2031		117,500		105,702
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3
5.43% due 02/15/2040		50,000		38,385
Morgan Stanley Capital I, Series 2006-T23, Class A4
5.9837% due 08/12/2041		485,000		451,219
Morgan Stanley Capital I, Series 2007-HQ11, Class A4
5.447% due 02/12/2044 (b)		1,060,000		914,855
Morgan Stanley Capital I, Series 2007-IQ14, Class A4
5.692% due 04/15/2049 (b)		495,000		385,227
Morgan Stanley Capital I, Series 2007-IQ15, Class A4
6.0762% due 06/11/2049 (b)		475,000		405,556
Morgan Stanley Capital I, Series 2007-T27, Class A1
5.606% due 06/11/2042		386,237		395,230
Morgan Stanley Capital I, Series 2008-T29, Class A4
6.4579% due 01/11/2043 (b)		45,000		39,790
Morgan Stanley Dean Witter Capital I, Series 2002-TOP7, Class A1
5.38% due 01/15/2039		9,952		10,119
Morgan Stanley Dean Witter Capital I, Series 2002-TOP7, Class A2
5.98% due 01/15/2039		366,000		383,466
Morgan Stanley Capital I, Series 2006-T23, Class A1
5.682% due 08/12/2041		133,336		136,507
PNC Mortgage Acceptance Corp., Series 1999-CM1, Class A1B
7.33% due 12/10/2032 (b)		23,680		23,648
Vendee Mortgage Trust, Series 1996-3, Class 4
9.5971% due 03/15/2025 (b)		9,304		10,017
Wells Fargo Mortgage Backed Securities Trust, Series 2003-O, Class 5A1
4.7942% due 01/25/2034 (b)		388,168		376,381
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR2, Class 2A2
4.5372% due 03/25/2035 (b)		291,505		270,576
Wells Fargo Mortgage Backed Securities Trust, Series 2005-AR2, Class 3A1
4.9204% due 03/25/2035 (b)		175,204		162,022
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR16, Class A1
7.8163% due 10/25/2036 (b)		777,450		522,451
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $31,010,191)			$	30,837,094
ASSET BACKED SECURITIES - 2.00%
American Express Credit Account Master Trust, Series 2005-5, Class A
0.3128% due 02/15/2013 (b)		605,000		602,421
American Express Credit Account Master Trust, Series 2006-B, Class A
0.3128% due 08/15/2013 (b)		170,000		168,521
American Express Credit Account Master Trust, Series 2007-4, Class A
0.2628% due 12/17/2012 (b)		125,000		124,568
AmeriCredit Automobile Receivables Trust, Series 2006-RM, Class A3
5.53% due 01/06/2014		1,570,000		1,550,762
Bank of America Credit Card Trust, Series 2007-A8, Class A8
5.59% due 11/17/2014		290,000		313,038
BankBoston Home Equity Loan Trust, Series 1998-2, Class A6
6.64% due 12/25/2028		44,130		33,110
Bay View Auto Trust, Series 2005-3, Class A4
5.01% due 06/25/2014		128,576		130,502
BMW Vehicle Lease Trust, Series 2009-1, Class A3
2.91% due 03/15/2012		270,000		273,791

The accompanying notes are an integral part of the financial statements.

321

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Cabela’s Master Credit Card Trust, Series 2005-1A, Class A1
4.97% due 10/15/2013 (f)	$	140,000	$	143,455
Capital One Multi-Asset Execution Trust, Series 2003-C3, Class C3
2.5228% due 07/15/2016 (b)		40,000		34,253
Capital One Multi-Asset Execution Trust, Series 2003-C4, Class C4
6.00% due 08/15/2013		325,000		325,880
Capital One Multi-Asset Execution Trust, Series 2007-C3, Class C3
0.5628% due 04/15/2013		125,000		120,259
Capital One Multi-Asset Execution Trust, Series 2008-A1, Class A
1.0228% due 11/15/2012 (b)(f)		1,100,000		1,100,215
Capital One Prime Auto Receivables Trust, Series 2006-1, Class A4
5.01% due 11/15/2011		206,819		209,411
Capital One Prime Auto Receivables Trust, Series 2006-2, Class A4
4.94% due 07/15/2012		350,046		358,523
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2002-2, Class 1M1
5.599% due 09/25/2031		19,877		8,645
Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2002-4, Class 2A1
Certificates, Series 2003-3, Class 1A6
3.717% due 10/25/2014		177,429		152,686
Citibank Credit Card Issuance Trust, Series 2007-A5, Class A5
5.50% due 06/22/2012		1,075,000		1,114,289
CNH Equipment Trust, Series 2007-A, Class B
5.09% due 06/16/2014		295,000		258,921
CNH Equipment Trust, Series 2009-B, Class A3
2.97% due 03/15/2013		305,000		309,518
Daimler Chrysler Auto Trust, Series 2008-A, Class A3A
3.70% due 06/08/2012		300,000		305,374
Detroit Edison Securitization Funding LLC, Series 2001-1, Class A5
6.42% due 03/01/2015		450,000		499,539
Discover Card Master Trust, Series 2009-A2, Class A
1.5588% due 02/17/2015 (b)(j)		870,000		870,000
GE Capital Credit Card Master Note Trust, Series 2009-2, Class A
3.69% due 07/15/2015		1,833,000		1,880,830
GE Capital Credit Card Master Note Trust, Series 2006-1, Class A
5.08% due 09/15/2012		340,000		339,229
Honda Auto Receivables Owner Trust, Series 2009-2, Class A4
4.43% due 07/15/2015		190,000		196,609
Honda Auto Receivables Owner Trust, Series 2007-1, Class A3
5.10% due 03/18/2011		142,919		144,791
Household Automotive Trust, Series 2006-2, Class A4
5.67% due 06/17/2013		220,000		228,198
Hyundai Auto Receivables Trust, Series 2006-A, Class A4
5.26% due 11/15/2012		115,662		117,481
John Deere Owner Trust, Series 2009-A, Class A3
2.59% due 10/15/2013		125,000		125,910
John Deere Owner Trust, Series 2006-A, Class A4
5.39% due 06/17/2013		135,313		137,701
John Deere Owner Trust, Series 2008-A, Class A2
3.63% due 03/15/2011		70,691		70,824
JPMorgan Auto Receivables Trust, Series 2007-A, Class A4
5.19% due 02/15/2014 (f)		240,000		246,042
Marriott Vacation Club Owner Trust, Series 2006-1A, Class A
5.737% due 04/20/2028 (f)		411,227		365,730
Marriott Vacation Club Owner Trust, Series 2006-1A, Class B
5.827% due 04/20/2028 (f)		15,930		12,120
Marriott Vacation Club Owner Trust, Series 2006-2A, Class A
5.362% due 10/20/2028 (f)		141,506		120,106
MBNA Credit Card Master Note Trust, Series 2006-C3, Class C3
0.5628% due 10/15/2013 (b)		415,000		386,033
Nissan Auto Lease Trust, Series 2009-A, Class A3
2.92% due 12/15/2011		160,000		162,091
Nissan Auto Receivables Owner Trust, Series 2008-A, Class A3
3.89% due 08/15/2011		168,979		171,379
Nordstrom Private Label
Credit Card Master Note Trust, Series 2007-1A, Class A
4.92% due 05/15/2013 (f)		350,000		355,679
Peco Energy Transition Trust, Series 2001-A, Class A1
6.52% due 12/31/2010		447,000		465,708
PSE&G Transition Funding LLC, Series 2001-1, Class A6
6.61% due 06/15/2015		281,000		313,645
Reliant Energy Transport Bond Company, Series 2001-1, Class A4
5.63% due 09/15/2015		334,000		361,863
Residential Asset Mortgage Products, Inc., Series 2003-RZ2, Class A1
3.60% due 04/25/2033		21,764		15,767
SLM Student Loan Trust, Series 2008-4, Class A2
1.5538% due 07/25/2016 (b)		675,000		677,395
Triad Auto Receivables Owner Trust, Series 2006-B, Class A3
5.41% due 08/12/2011		44,902		45,090
Triad Auto Receivables Owner Trust, Series 2006-B, Class A4
5.52% due 11/12/2012		500,000		485,050
USAA Auto Owner Trust, Series 2007-2, Class A3
4.90% due 02/15/2012		476,451		485,254
USAA Auto Owner Trust, Series 2008-1, Class A3
4.16% due 04/16/2012		349,834		356,689
Volkswagen Auto Lease Trust, Series 2009-A, Class A3
3.41% due 04/16/2012		400,000		410,451

The accompanying notes are an integral part of the financial statements.

322

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Spectrum Income Fund (continued)

		Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4
5.572% due 10/15/2048 (b)		$	180,000	$	152,968
Wachovia Auto Owner Trust, Series 2006-A, Class A4
5.38% due 03/20/2013			164,319		168,587
TOTAL ASSET BACKED SECURITIES (Cost $17,939,775)				$	18,014,836
SUPRANATIONAL OBLIGATIONS - 0.37%
Supranational - 0.37%
European Investment Bank
8.75% due 08/25/2017	GBP		320,000		695,261
European Investment Bank, EMTN
4.75% due 10/15/2017	EUR		965,000		1,509,396
Inter-American Development Bank
4.40% due 01/26/2026	CAD		410,000		341,891
International Finance Corp., MTN
7.50% due 02/28/2013	AUD		370,000		330,435
Queensland Treasury Corp., Series 17
6.00% due 09/14/2017			532,000		449,646
					3,326,629
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $3,285,602)				$	3,326,629
				��
SHORT TERM INVESTMENTS - 7.06%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)			1,225,675	$	12,270,597
T. Rowe Price Reserve Investment Fund, 0.3265%			51,467,544		51,360,551
TOTAL SHORT TERM INVESTMENTS (Cost $63,630,543)				$	63,631,148
REPURCHASE AGREEMENTS - 0.38%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $3,385,007 on 09/01/2009, collateralized by $3,375,000 Federal Home Loan Bank, 5.00% due 12/11/2009 (valued at $3,455,156, including interest)		$	3,385,000	$	3,385,000
TOTAL REPURCHASE AGREEMENTS (Cost $3,385,000)				$	3,385,000
Total Investments (Spectrum Income Fund) (Cost $910,667,488) - 102.04%				$	919,182,904
Other assets and liabilities, net - (2.04)%					(18,371,471	)
TOTAL NET ASSETS - 100.00%				$	900,811,433
Strategic Bond Fund
U.S. TREASURY OBLIGATIONS - 7.42%
Treasury Inflation Protected
Securities (d) - 3.23%
2.50% due 01/15/2029		$	7,532,625	$	7,888,074
3.875% due 04/15/2029 ***			1,574,028		1,972,946
1.75% due 01/15/2028 ***			1,461,606		1,362,492
2.00% due 01/15/2026 ***			4,975,895		4,834,391
					16,057,903
U.S. Treasury Bonds - 1.98%
3.50% due 02/15/2039			459,000		405,498
4.25% due 05/15/2039			1,840,000		1,860,413
4.50% due 08/15/2039			5,300,000		5,585,702
8.75% due 08/15/2020			690,000		999,206
3.625% due 08/15/2019			980,000		998,375
					9,849,194
U.S. Treasury Notes - 2.06%
1.75% due 08/15/2012			1,690,000		1,703,336
2.375% due 08/31/2014			4,690,000		4,686,885
2.75% due 02/15/2019			3,720,000		3,521,505
3.125% due 05/15/2019			370,000		361,212
					10,272,938
U.S. Treasury Strips - 0.15%
0.01% due 05/15/2018 to 05/15/2030			1,020,000		727,683
TOTAL U.S. TREASURY OBLIGATIONS (Cost $36,505,705)				$	36,907,718
U.S. GOVERNMENT AGENCY OBLIGATIONS - 27.48%
Federal Home Loan Bank - 4.02%
1.625% due 07/27/2011			930,000		938,235
4.50% due 10/09/2009 (a)			10,300,000		10,345,372
5.00% due 09/18/2009 (a)			8,700,000		8,718,609
					20,002,216
Federal Home Loan Mortgage Corp. - 3.54%
3.00% due 07/28/2014			2,570,000		2,597,695
5.00% due 12/01/2034			115,809		119,568
5.50% due 11/01/2035 to 01/01/2038			11,353,984		11,860,754
5.50% TBA **			2,900,000		3,021,211
					17,599,228
Federal National Mortgage
Association - 17.70%
0.01% PO due 02/01/2019			380,000		218,577
3.167% due 11/01/2035 (b)			214,911		218,404
4.50% due 04/01/2038			3,498,749		3,522,256
4.625% due 05/01/2013			1,230,000		1,286,392
5.00% due 08/01/2034 to 07/01/2038			7,190,312		7,408,946
5.00% TBA **			31,800,000		32,634,750
5.25% due 08/01/2012			1,300,000		1,389,482
5.50% due 09/14/2017 to 08/01/2037			16,617,810		17,360,828
5.50% TBA **			11,290,000		11,748,656
6.00% due 04/18/2036 to 10/01/2037			3,660,352		3,852,204
6.00% TBA **			5,200,000		5,473,797
6.25% due 02/01/2011			2,190,000		2,321,669
6.50% due 10/01/2032 (b)			456,566		492,842
7.50% due 07/01/2030 to 02/01/2031			8,389		9,212
8.00% due 08/01/2027			37,037		40,980
8.80% due 01/25/2019			20,631		23,277

The accompanying notes are an integral part of the financial statements.

323

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (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)
10.40% due 04/25/2019		$	4,289	$	4,706
					88,006,978
Government National Mortgage
Association - 1.61%
5.00% due 06/15/2033 to 08/15/2035			2,136,409		2,217,124
5.00% TBA **			700,000		720,344
6.00% due 01/15/2037			4,796,346		5,074,196
7.50% due 04/15/2022 to 10/15/2027			6,557		7,214
					8,018,878
The Financing Corp. - 0.61%
0.01% due 02/08/2018			190,000		131,923
0.01% due 03/07/2019			300,000		195,617
0.01% due 06/06/2019			100,000		64,718
0.01% due 05/11/2018			730,000		502,496
0.01% due 08/03/2018			310,000		209,717
0.01% due 08/03/2018			560,000		381,718
0.01% due 08/03/2018			300,000		204,491
0.01% due 04/06/2018			590,000		406,596
0.01% due 08/03/2018 to 09/26/2019			730,000		491,934
0.01% due 11/02/2018			680,000		452,915
					3,042,125
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $133,607,381)				$	136,669,425
FOREIGN GOVERNMENT OBLIGATIONS - 3.17%
Brazil - 1.73%
Federative Republic of Brazil
6.00% due 05/15/2015	BRL		633,000		618,397
10.00% due 01/01/2012			1,093,000		577,405
10.00% due 07/01/2010			13,610,000		7,388,157
10.00% due 01/01/2010			1,000		541
					8,584,500
Indonesia - 0.25%
Republic of Indonesia
11.00% due 09/15/2025	IDR		13,051,000,000		1,261,031
Italy - 0.09%
Republic of Italy
5.804% due 10/25/2032		$	440,000		455,363
Mexico - 0.14%
Government of Mexico
5.625% due 01/15/2017			684,000		692,550
Russia - 0.15%
Government of Russia
7.50% due 03/31/2030			707,520		725,208
Turkey - 0.81%
Republic of Turkey
6.875% due 03/17/2036			4,215,000		4,041,131
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $14,969,075)				$	15,759,783
CORPORATE BONDS - 41.09%
Advertising - 0.15%
WPP Finance UK
8.00% due 09/15/2014		$	690,000	$	755,740
Air Travel - 0.35%
Continental Airlines, Inc., Series C
7.339% due 04/19/2014			140,000		109,200
DAE Aviation Holdings, Inc.
11.25% due 08/01/2015 (f)			2,360,000		1,652,000
					1,761,200
Aluminum - 0.40%
Novelis, Inc.
7.25% due 02/15/2015			2,465,000		1,996,650
Apparel & Textiles - 0.09%
Oxford Industries, Inc.
11.375% due 07/15/2015			440,000		457,600
Auto Parts - 0.02%
Keystone Automotive Operations, Inc.
9.75% due 11/01/2013			90,000		23,625
Visteon Corp.
8.25% due 08/01/2010 ^			166,000		9,960
12.25% due 12/31/2016 ^ (f)			697,000		47,048
					80,633
Auto Services - 0.16%
Penhall International Corp.
12.00% due 08/01/2014 (f)			1,965,000		786,000
Automobiles - 0.28%
General Motors Corp.
8.25% due 07/15/2023 ^			580,000		84,100
8.375% due 07/15/2033 ^			8,575,000		1,318,406
					1,402,506
Banking - 1.19%
Bank of America Corp.
5.42% due 03/15/2017			1,600,000		1,464,552
Glitnir Banki HF
6.33% due 07/28/2011 ^ (f)			440,000		86,900
6.375% due 09/25/2012 ^ (f)			580,000		114,550
6.693% due 06/15/2016 ^ (b)(f)			620,000		62
7.451% due 09/14/2049 ^ (b)(f)			100,000		10
ICICI Bank, Ltd.
6.375% until 04/30/2017, then variable due 04/30/2022 (f)			786,000		624,397
6.375% until 04/30/2017, then variable due 04/30/2022			240,000		189,000
Kaupthing Bank HF
7.125% due 05/19/2016 ^ (f)			230,000		23
7.625% due 02/28/2015 ^ (f)			1,280,000		243,200
Lloyds TSB Bank PLC
2.80% due 04/02/2012 (f)			650,000		664,418
RSHB Capital SA for OJSC Russian Agricultural Bank
7.125% due 01/14/2014			750,000		741,509
Wachovia Corp.
5.25% due 08/01/2014			1,740,000		1,771,840
					5,900,461

The accompanying notes are an integral part of the financial statements.

324

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Broadcasting - 0.86%
News America, Inc.
5.30% due 12/15/2014	$	3,305,000	$	3,542,927
6.65% due 11/15/2037		50,000		51,417
Time Warner Cable, Inc.
7.30% due 07/01/2038		590,000		667,567
				4,261,911
Building Materials & Construction - 0.12%
Associated Materials, Inc.
11.25 due 03/01/2014		1,005,000		542,700
NTK Holdings, Inc.
10.75% due 03/01/2014		865,000		38,925
				581,625
Business Services - 0.33%
Affinion Group, Inc.
10.125% due 10/15/2013		455,000		452,156
10.125% due 10/15/2013 (f)		470,000		467,063
11.50% due 10/15/2015		130,000		124,800
SunGard Data Systems, Inc.
10.25% due 08/15/2015		610,000		603,900
				1,647,919
Cable & Television - 1.64%
Charter Communications Holdings I LLC
11.00% due 10/01/2015 ^		2,362,000		330,680
Charter Communications Holdings II LLC
10.25% due 10/01/2013 ^		267,000		296,704
Charter Communications Holdings LLC
11.75% due 05/15/2011 ^		1,540,000		1,925
12.125% due 01/15/2012 ^		30,000		75
Charter Communications, Inc.
12.875% due 09/15/2014 ^ (f)		880,000		954,800
Comcast Corp.
5.70% due 05/15/2018		870,000		918,687
6.50% due 01/15/2015		460,000		509,404
6.50% due 01/15/2017		850,000		931,484
CSC Holdings, Inc.
6.75% due 04/15/2012		250,000		251,250
8.50% due 06/15/2015 (f)		125,000		126,250
DISH DBS Corp.
7.875% due 09/01/2019 (f)		780,000		774,150
EchoStar DBS Corp.
7.75% due 05/31/2015		1,030,000		1,009,400
Time Warner Entertainment Company LP
8.375% due 07/15/2033		430,000		517,840
Time Warner, Inc.
7.625% due 04/15/2031		595,000		653,409
Univision Communications, Inc.
12.00% due 07/01/2014 (f)		720,000		756,000
UPC Holding BV
9.875% due 04/15/2018 (f)		130,000		131,462
				8,163,520
Cellular Communications - 0.23%
ALLTEL Communications, Inc., PIK
10.375% due 12/01/2017 (f)		130,000		158,073
Cricket Communications, Inc.
7.75% due 05/15/2016 (f)		505,000		489,850
Rogers Wireless, Inc.
8.00% due 12/15/2012 $20,000 $20,725
True Move Company, Ltd.
10.75% due 12/16/2013 (f)		385,000		360,938
Vimpelcom
8.375% due 04/30/2013 (f)		100,000		99,620
				1,129,206
Chemicals - 0.02%
Arco Chemical Company
9.80% due 02/01/2020 ^		75,000		25,500
Methanex Corp.
8.75% due 08/15/2012		80,000		78,800
				104,300
Coal - 0.03%
International Coal Group, Inc.
10.25% due 07/15/2014		180,000		152,100
Commercial Services - 0.71%
Altegrity, Inc.
10.50% due 11/01/2015 (f)		510,000		422,025
Ceridian Corp., PIK
12.25% due 11/15/2015		110,000		86,900
DI Finance/DynCorp International LLC, Series B
9.50% due 02/15/2013		350,000		354,812
Rental Service Corp.
9.50% due 12/01/2014		3,000,000		2,685,000
				3,548,737
Construction Materials - 0.00%
Nortek, Inc.
8.50% due 09/01/2014		35,000		16,450
Containers-Paper/Plastic - 0.00%
Radnor Holdings, Inc.
11.00% due 03/15/2010 ^		125,000		156
Crude Petroleum & Natural Gas - 1.43%
Anadarko Petroleum Corp.
5.95% due 09/15/2016		50,000		51,996
8.70% due 03/15/2019		1,010,000		1,189,664
Berry Petroleum Company
10.25% due 06/01/2014		250,000		260,937
Chesapeake Energy Corp.
6.25% due 01/15/2018		90,000		78,300
6.50% due 08/15/2017		90,000		79,425
6.875% due 01/15/2016		450,000		412,875
7.25% due 12/15/2018		525,000		480,375
Conoco, Inc.
6.95% due 04/15/2029		1,620,000		1,867,653
Hess Corp.
7.30% due 08/15/2031		900,000		991,370
Mariner Energy, Inc.
7.50% due 04/15/2013		80,000		75,600
OPTI Canada, Inc.
7.875% due 12/15/2014		220,000		140,800
8.25% due 12/15/2014		125,000		81,250
PetroHawk Energy Corp.
9.125% due 07/15/2013		120,000		121,800
Plains Exploration & Production Company
10.00% due 03/01/2016		240,000		254,400

The accompanying notes are an integral part of the financial statements.

325

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Crude Petroleum & Natural Gas (continued)
Quicksilver Resources, Inc.
7.125% due 04/01/2016	$	250,000	$	207,500
11.75% due 01/01/2016		120,000		127,200
SandRidge Energy, Inc.
9.875% due 05/15/2016 (f)		610,000		610,000
W&T Offshore, Inc.
8.25% due 06/15/2014 (f)		105,000		92,400
				7,123,545
Domestic Oil - 0.14%
Exco Resources, Inc.
7.25% due 01/15/2011		335,000		328,300
Whiting Petroleum Corp.
7.00% due 02/01/2014		375,000		367,500
				695,800
Drugs & Health Care - 0.19%
Humana, Inc.
6.30% due 08/01/2018		1,065,000		966,842
Educational Services - 0.23%
Education Management Corp.
10.25% due 06/01/2016		1,105,000		1,156,106
Electrical Utilities - 3.39%
AES Corp.
7.75% due 03/01/2014		2,813,000		2,739,159
7.75% due 10/15/2015		270,000		261,900
8.00% due 10/15/2017		2,795,000		2,676,212
9.375% due 09/15/2010		925,000		952,750
Dominion Resources, Inc.
5.70% due 09/17/2012		730,000		794,009
Edison Mission Energy
7.00% due 05/15/2017		120,000		91,650
7.20% due 05/15/2019		370,000		268,250
7.625% due 05/15/2027		130,000		87,100
7.75% due 06/15/2016		300,000		244,500
Energy Future Holdings Corp., PIK
11.25% due 11/01/2017		5,692,200		3,472,242
Exelon Corp.
5.625% due 06/15/2035		170,000		155,770
FirstEnergy Corp.
6.45% due 11/15/2011		430,000		460,097
7.375% due 11/15/2031		675,000		745,164
Mirant Mid Atlantic LLC, Series C
10.06% due 12/30/2028		574,834		577,708
Orion Power Holdings, Inc.
12.00% due 05/01/2010		170,000		175,525
Pacific Gas & Electric Company
6.05% due 03/01/2034		490,000		534,114
TXU Corp., Series P
5.55% due 11/15/2014		1,000,000		642,847
TXU Corp., Series Q
6.50% due 11/15/2024		460,000		219,127
TXU Corp., Series R
6.55% due 11/15/2034		3,880,000		1,752,235
				16,850,359
Electronics - 0.13%
L-3 Communications Corp.
7.625% due 06/15/2012		550,000		556,875
L-3 Communications Corp., Series B
6.375% due 10/15/2015		75,000		70,687
				627,562
Energy - 0.43%
Enterprise Products Operating LP
8.375% until 08/01/2016, then variable due 08/01/2066		210,000		182,175
Mirant North America LLC
7.375% due 12/31/2013		300,000		288,000
NRG Energy, Inc.
7.25% due 02/01/2014		720,000		700,200
7.375% due 02/01/2016		1,010,000		965,813
				2,136,188
Financial Services - 12.73%
Aiful Corp.
5.00% due 08/10/2010 (f)		440,000		224,400
American General Finance Corp.
6.90% due 12/15/2017		280,000		172,891
Bear Stearns Companies, Inc.
7.25% due 02/01/2018		3,200,000		3,649,165
CDX North America High Yield, Series 8-T1
7.625% due 06/29/2012 (f)		7,856,100		7,227,612
Citigroup Funding, Inc.
2.25% due 12/10/2012		1,170,000		1,181,656
Citigroup, Inc.
2.125% due 07/12/2012		1,190,000		1,200,014
5.00% due 09/15/2014		1,080,000		989,508
5.625% due 08/27/2012		1,090,000		1,080,665
5.875% due 05/29/2037		8,270,000		6,597,062
6.125% due 08/25/2036		50,000		39,149
6.875% due 03/05/2038		1,240,000		1,119,931
Countrywide Financial Corp.
6.25% due 05/15/2016		420,000		407,431
Credit Suisse USA, Inc.
5.50% due 08/16/2011		270,000		287,102
Dexia Credit Local
2.375% due 09/23/2011 (f)		460,000		466,005
El Paso Performance-Linked Trust
7.75% due 07/15/2011 (f)		980,000		1,001,437
Ford Motor Credit Company LLC
3.26% due 01/13/2012 (b)		60,000		49,950
5.8794% due 06/15/2011 (b)		836,000		769,120
7.00% due 10/01/2013		80,000		71,341
7.375% due 10/28/2009		70,000		70,006
7.80% due 06/01/2012		700,000		647,532
7.875% due 06/15/2010		1,875,000		1,871,089
9.875% due 08/10/2011		725,000		717,331
12.00% due 05/15/2015		9,990,000		10,397,677
General Electric Capital Corp.
2.125% due 12/21/2012		3,350,000		3,369,195
GMAC LLC
2.20% due 12/19/2012		1,030,000		1,037,967
6.00% due 04/01/2011 (f)		1,231,000		1,126,365
7.50% due 12/31/2013 (f)		332,000		273,070
8.00% due 11/01/2031 (f)		8,716,000		6,733,110
8.00% due 12/31/2018 (f)		398,000		289,545

The accompanying notes are an integral part of the financial statements.

326

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

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	$	595,259
Hawker Beechcraft Acquisition Company LLC, PIK
8.875% due 04/01/2015		885,000		504,450
HSBC Finance Capital Trust IX
5.911% until 11/30/2015, then variable due 11/30/2035		1,650,000		1,097,250
International Lease Finance Corp.
5.875% due 05/01/2013		815,000		641,370
JPMorgan Chase & Company
6.625% due 03/15/2012		970,000		1,034,018
Lehman Brothers Holdings, Inc.
4.50% due 07/26/2010 ^		775,000		135,625
6.20% due 09/26/2014 ^		290,000		50,750
Lehman Brothers Holdings, Inc., MTN
6.75% due 12/28/2017 ^		2,620,000		262
Merrill Lynch & Company, Inc.
5.70% due 05/02/2017		1,090,000		1,020,158
Morgan Stanley
0.96% due 10/18/2016 (b)		250,000		221,321
4.75% due 04/01/2014		2,280,000		2,263,509
Shinsei Finance Cayman, Ltd.
6.418% until 07/20/2016, then variable due 01/29/2049 (f)		850,000		416,500
TNK-BP Finance SA
6.625% due 03/20/2017		110,000		97,900
7.50% due 07/18/2016 (f)		890,000		836,600
Wells Fargo Company
5.30% due 08/26/2011		1,250,000		1,324,189
				63,306,487
Food & Beverages - 0.05%
Dole Food Company, Inc.
7.25% due 06/15/2010		230,000		228,850
Kroger Company
6.40% due 08/15/2017		40,000		44,197
				273,047
Forest Products - 0.10%
Weyerhaeuser Company
6.75% due 03/15/2012		480,000		495,899
Funeral Services - 0.02%
Service Corp. International
7.50% due 04/01/2027		30,000		25,350
7.625% due 10/01/2018		65,000		62,238
				87,588
Furniture & Fixtures - 0.15%
Norcraft Companies LP
9.00% due 11/01/2011		400,000		404,000
Norcraft Holdings Capital
9.75 due 09/01/2012		350,000		334,250
				738,250
Gas & Pipeline Utilities - 2.36%
Dynegy Holdings, Inc.
7.75% due 06/01/2019		330,000		234,300
El Paso Corp.
7.00% due 06/15/2017		1,050,000		986,906
7.375% due 12/15/2012		475,000		481,734
7.75% due 01/15/2032		6,270,000		5,583,165
7.80% due 08/01/2031		2,783,000		2,481,451
7.875% due 06/15/2012		500,000		512,327
El Paso Natural Gas Company
8.375% due 06/15/2032		480,000		574,203
Kinder Morgan Energy Partners LP
5.00% due 12/15/2013		140,000		145,509
6.75% due 03/15/2011		100,000		105,679
7.125% due 03/15/2012		20,000		21,896
Williams Companies, Inc.
7.625% due 07/15/2019		25,000		27,115
7.875% due 09/01/2021		275,000		297,779
8.75% due 03/15/2032		267,000		300,365
				11,752,429
Healthcare Products - 0.42%
Biomet, Inc.
11.625% due 10/15/2017		1,020,000		1,078,650
Biomet, Inc., PIK
10.375% due 10/15/2017		880,000		917,400
Leiner Health Products, Inc.
11.00% due 06/01/2012 ^		500,000		1,250
Universal Hospital Services, Inc.
4.635% due 06/01/2015 (b)		50,000		40,500
Universal Hospital Services, Inc., PIK
8.50% due 06/01/2015		40,000		38,600
				2,076,400
Healthcare Services - 0.45%
DaVita, Inc.
7.25% due 03/15/2015		420,000		405,300
U.S. Oncology Holdings, Inc., PIK
6.9037% due 03/15/2012		458,000		389,300
U.S. Oncology, Inc.
9.125% due 08/15/2017 (f)		520,000		540,800
Vanguard Health Holding Company I LLC zero coupon, Step up to
11.25% on 10/01/2009 due 10/01/2015		300,000		301,500
Vanguard Health Holding Company II LLC
9.00% due 10/01/2014		615,000		604,237
				2,241,137
Holdings Companies/Conglomerates - 0.29%
Ashtead Capital, Inc.
9.00% due 08/15/2016 (f)		558,000		489,645
Leucadia National Corp.
7.125% due 03/15/2017		10,000		9,175
8.125% due 09/15/2015		970,000		950,600
				1,449,420
Homebuilders - 0.05%
K Hovnanian Enterprises, Inc.
11.50% due 05/01/2013		260,000		251,550
Hotels & Restaurants - 0.12%
CCM Merger, Inc.
8.00% due 08/01/2013 (f)		200,000		162,000
El Pollo Loco, Inc.
11.75% due 11/15/2013		295,000		252,225
11.75% due 12/01/2012 (f)		70,000		73,150

The accompanying notes are an integral part of the financial statements.

327

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Hotels & Restaurants (continued)
Sbarro, Inc.
10.375% due 02/01/2015	$	160,000		$113,600
				600,975
Industrial Machinery - 0.13%
H&E Equipment Services, Inc.
8.375% due 07/15/2016		400,000		344,000
Terex Corp.
10.875% due 06/01/2016		270,000		282,825
				626,825
Insurance - 0.02%
American International Group, Inc., MTN
5.85% due 01/16/2018		160,000		106,618
International Oil - 1.48%
Corral Finans AB, PIK
2.0094% due 04/15/2010 (b)(f)		108,307		82,855
Kerr-McGee Corp.
6.95% due 07/01/2024		490,000		506,001
OAO Gazprom
9.625% due 03/01/2013		150,000		163,065
Pemex Project Funding Master Trust
6.625% due 06/15/2035		7,019,000		6,392,779
Petroplus Finance, Ltd.
6.75% due 05/01/2014 (f)		110,000		100,100
7.00% due 05/01/2017 (f)		130,000		113,750
				7,358,550
Leisure Time - 0.57%
Boyd Gaming Corp.
6.75% due 04/15/2014		400,000		348,500
Harrahs Operating Escrow LLC
11.25% due 06/01/2017 (f)		730,000		742,775
Inn of the Mountain Gods Resort & Casino
12.00% due 11/15/2010 ^		190,000		83,600
MGM Mirage, Inc.
6.625% due 07/15/2015		20,000		14,350
7.625% due 01/15/2017		310,000		221,650
10.375% due 05/15/2014 (f)		170,000		178,925
11.125% due 11/15/2017 (f)		410,000		446,900
Mohegan Tribal Gaming Authority
6.875% due 02/15/2015		150,000		103,500
7.125% due 08/15/2014		150,000		105,000
River Rock Entertainment Authority
9.75% due 11/01/2011		25,000		22,000
Snoqualmie Entertainment Authority
4.68% due 02/01/2014 (b)(f)		45,000		22,050
9.125% due 02/01/2015 (f)		700,000		385,000
Station Casinos, Inc.
7.75% due 08/15/2016 ^		240,000		74,700
WMG Acquisition Corp.
9.50% due 06/15/2016 (f)		100,000		103,500
				2,852,450
Manufacturing - 0.94%
Tyco International Group SA
6.00% due 11/15/2013		1,040,000		1,118,780
6.375% due 10/15/2011		180,000		192,438
6.75% due 02/15/2011		360,000		380,167
Tyco International, Ltd.
6.875% due 01/15/2021		2,760,000		2,982,456
				4,673,841
Medical-Hospitals - 1.64%
Community Health Systems, Inc.
8.875% due 07/15/2015		360,000		361,350
HCA, Inc.
6.375% due 01/15/2015		265,000		231,875
7.50% due 12/15/2023		25,000		19,609
7.50% due 11/15/2095		40,000		26,228
7.50% due 11/06/2033		1,400,000		1,016,162
9.125% due 11/15/2014		670,000		676,700
9.25% due 11/15/2016		1,140,000		1,154,250
HCA, Inc., PIK
9.625% due 11/15/2016		2,880,000		2,908,800
Tenet Healthcare Corp.
6.875% due 11/15/2031		1,125,000		742,500
7.375% due 02/01/2013		125,000		115,000
8.875% due 07/01/2019 (f)		672,000		688,800
9.00% due 05/01/2015 (f)		190,000		194,750
				8,136,024
Mining - 0.97%
Freeport-McMoRan Copper & Gold, Inc.
8.375% due 04/01/2017		2,400,000		2,502,000
Noranda Aluminium Acquisition Corp., PIK
5.4125% due 05/15/2015 (b)		134,774		82,212
Teck Resources, Ltd.
9.75% due 05/15/2014		190,000		205,200
10.25% due 05/15/2016		160,000		176,800
10.75% due 05/15/2019		320,000		364,400
Vale Overseas, Ltd.
6.875% due 11/21/2036		887,000		888,069
Vedanta Resources PLC
8.75% due 01/15/2014 (f)		600,000		586,500
				4,805,181
Oil Comp-Integrated - 0.13%
Occidental Petroleum Corp.
7.00% due 11/01/2013		570,000		658,700
Paper - 0.42%
Abitibi-Consolidated Company of Canada
13.75% due 04/01/2011 ^ (f)		690,000		655,500
Appleton Papers, Inc.
8.125% due 06/15/2011		15,000		11,287
Appleton Papers, Inc., Series B
9.75% due 06/15/2014		305,000		137,631
NewPage Corp.
6.7331% due 05/01/2012 (b)		1,705,000		728,888
NewPage Holding Corp., PIK
8.5788% due 11/01/2013 (b)		1,405,586		323,285
PE Paper Escrow GmbH
12.00% due 08/01/2014 (f)		100,000		102,500
Smurfit Capital Funding PLC
7.50% due 11/20/2025		200,000		155,500
				2,114,591

The accompanying notes are an integral part of the financial statements.

328

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Petroleum Services - 0.56%
Anadarko Finance Company, Series B
7.50% due 05/01/2031	$	1,410,000	$	1,507,513
Belden & Blake Corp.
8.75% due 07/15/2012		725,000		648,875
Compagnie Generale de Geophysique SA
7.50% due 05/15/2015		50,000		47,500
Complete Production Services, Inc.
8.00% due 12/15/2016		235,000		201,512
Key Energy Services, Inc.
8.375% due 12/01/2014		150,000		135,750
Pride International, Inc.
7.375% due 07/15/2014		210,000		212,100
SemGroup LP
8.75% due 11/15/2015 ^ (f)		200,000		12,000
				2,765,250
Photography - 0.50%
Eastman Kodak Company
3.375% due 10/15/2033		2,720,000		2,482,000
Publishing - 0.33%
Idearc, Inc.
8.00% due 11/15/2016 ^		1,045,000		79,681
TL Acquisitions, Inc.
10.50% due 01/15/2015 (f)		1,740,000		1,583,400
				1,663,081
Railroads & Equipment - 0.19%
Grupo Transportacion Ferroviaria Mexicana, SA de CV
9.375% due 05/01/2012		130,000		128,050
Kansas City Southern de Mexico SA de CV
7.375% due 06/01/2014		850,000		752,250
7.625% due 12/01/2013		50,000		45,250
				925,550
Real Estate - 0.20%
Ashton Woods USA LLC/Ashton Woods Finance Company zero coupon, Step up to
11.00% on 02/24/2012 due 06/30/2015 (f)		39,000		14,625
Forest City Enterprises, Inc.
7.625% due 06/01/2015		5,000		3,137
Realogy Corp.
10.50% due 04/15/2014		711,000		423,045
12.375% due 04/15/2015		900,000		364,500
Realogy Corp., PIK
11.00% due 04/15/2014		794		393
Ventas Realty LP
6.50% due 06/01/2016		35,000		32,463
6.75% due 04/01/2017		150,000		141,000
				979,163
Retail - 0.28%
Michaels Stores, Inc.
10.00% due 11/01/2014		920,000		878,600
Suburban Propane Partners LP
6.875% due 12/15/2013		365,000		354,050
Wal-Mart Stores, Inc.
5.80% due 02/15/2018		140,000		156,402
				1,389,052
Retail Grocery - 0.01%
Kroger Company
6.15% due 01/15/2020		60,000		65,882
Retail Trade - 0.75%
American Greetings Corp.
7.375% due 06/01/2016		15,000		12,825
Blockbuster, Inc.
9.00% due 09/01/2012		1,190,000		621,775
CVS Corp.
9.35% due 01/10/2023 (f)		1,700,000		1,054,493
CVS Pass-Through Trust
6.036% due 12/10/2028		440,288		415,553
Dollar General Corp.
10.625% due 07/15/2015		95,000		105,450
Neiman Marcus Group, Inc., PIK
9.00% due 10/15/2015 (f)		2,035,725		1,516,615
				3,726,711
Sanitary Services - 0.16%
Waste Management, Inc.
6.375% due 11/15/2012		730,000		798,948
Semiconductors - 0.02%
Freescale Semiconductor, Inc.
10.125% due 12/15/2016		10,000		5,550
Sensata Technologies B.V.
8.00% due 05/01/2014 (f)		120,000		102,600
				108,150
Steel - 0.31%
Metals USA, Inc.
11.125% due 12/01/2015		450,000		411,750
Ryerson, Inc.
12.00% due 11/01/2015		1,125,000		1,035,000
Steel Dynamics, Inc.
7.375% due 11/01/2012		110,000		108,075
				1,554,825
Telecommunications Equipment &
Services - 0.40%
Deutsche Telekom International Finance BV
5.75% due 03/23/2016		430,000		457,675
Hawaiian Telcom Communications, Inc., Series B
12.50% due 05/01/2015 ^		110,000		137
Intelsat Bermuda, Ltd.
11.25% due 06/15/2016		510,000		531,675
Intelsat Corp.
9.25% due 08/15/2014		280,000		284,200
Intelsat Jackson Holdings, Ltd.
9.50% due 06/15/2016		65,000		66,788
Royal KPN NV
8.00% due 10/01/2010		580,000		614,464
SBA Telecommunications, Inc.
8.25% due 08/15/2019 (f)		25,000		25,125
				1,980,064
Telephone - 1.49%
AT&T, Inc.
5.60% due 05/15/2018		310,000		327,422
Cincinnati Bell Telephone Company
6.30% due 12/01/2028		95,000		68,400

The accompanying notes are an integral part of the financial statements.

329

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telephone (continued)
Level 3 Financing, Inc.
9.25% due 11/01/2014	$	460,000	$	379,500
Nordic Telephone Company Holdings
8.875% due 05/01/2016 (f)		500,000		507,500
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		306,000		295,290
Qwest Corp.
3.8794% due 06/15/2013 (b)		90,000		83,250
Sprint Capital Corp.
8.375% due 03/15/2012		2,750,000		2,753,437
Telecom Italia Capital SA
5.25% due 10/01/2015		500,000		518,653
Verizon Communications, Inc.
5.50% due 02/15/2018		1,060,000		1,113,194
Verizon Florida LLC, Series F
6.125% due 01/15/2013		295,000		314,354
Virgin Media Finance PLC, Series 1
9.50% due 08/15/2016		195,000		200,363
Virgin Media, Inc.
9.125% due 08/15/2016		590,000		597,375
Windstream Corp.
8.625% due 08/01/2016		255,000		255,956
				7,414,694
Tobacco - 0.07%
Alliance One International, Inc.
10.00% due 07/15/2016 (f)		220,000		217,250
10.00% due 07/15/2016 (f)		120,000		118,500
				335,750
Transportation - 0.22%
RailAmerica, Inc.
9.25% due 07/01/2017 (f)		1,050,000		1,085,438
Trucking & Freight - 0.04%
Swift Transportation Company, Inc.
8.19% due 05/15/2015 (b)(f)		40,000		20,400
12.50% due 05/15/2017 (f)		345,000		189,750
				210,150
TOTAL CORPORATE BONDS (Cost $233,619,264)			$	204,393,786
COLLATERALIZED MORTGAGE
OBLIGATIONS - 7.50%
Banc of America Commercial Mortgage, Inc., Series 2006-1, Class A4
5.372% due 09/10/2045		340,000		306,342
Bear Stearns Structured Products, Inc., Series 2007-EMX1, Class A1
1.2656% due 03/25/2037 (b)(f)		2,877,754		2,329,111
Commercial Mortgage Asset Trust, Series 1999-C1, Class C
7.35% due 01/17/2032		295,000		316,319
Commercial Mortgage Pass-Through Certificates, Series 2001-J2A, Class A1
5.447% due 07/16/2034		226,118		233,788
Countrywide Alternative Loan Trust, Series 2006-OA9, Class 2A1B
0.4725% due 07/20/2046 (b)		1,246,297		583,438
Countrywide Home Loans, Series 2006-HYB3, Class 2A1A
5.6804% due 05/20/2036 (b) $107,734 $70,653
Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class A4
5.609% due 02/15/2039 (b)		1,675,000		1,566,040
Federal Home Loan Mortgage Corp., Series 3330, Class VA
5.00% due 06/15/2018		252,792		267,562
First Boston Mortgage Securities Corp., Series D, Class I-O
10.965% IO due 05/25/2017		7,761		1,735
First Union National Bank Commercial Mortgage, Series 2000-C1
0.8357% IO due 05/17/2032		11,344,193		106,610
GMAC Mortgage Corp Loan Trust, Series 2004-AR1, Class 24A
5.0651% due 06/25/2034		707,625		559,285
Green Tree Financial Corp., Series 1997-6, Class A8
7.07% due 01/15/2029		276,878		266,978
GSMPS Mortgage Loan Trust, Series 2005-RP2, Class 1AF
0.6156% due 03/25/2035 (b)(f)		671,331		470,652
GSR Mortgage Loan Trust, Series 2004-7, Class 4A1
4.8584% due 06/25/2034 (b)		593,487		557,436
GSR Mortgage Loan Trust, Series 2005-AR4, Class 3A5
4.7538% due 07/25/2035 (b)		4,500,000		3,029,261
GSRPM Mortgage Loan Trust, Series 2003-1, Class A3
0.7656% due 01/25/2032 (b)		59,983		39,617
Harborview Mortgage Loan Trust, Series 2007-7, Class 2A1A
1.2656% due 11/25/2047 (b)		3,490,819		1,486,303
Impac CMB Trust, Series 2003-4, Class 1A1
0.9056% due 10/25/2033 (b)		39,907		24,855
IndyMac Index Mortgage Loan Trust, Series 2005-AR14, Class 2A1A
0.5656% due 07/25/2035 (b)		1,130,541		607,560
IndyMac Index Mortgage Loan Trust, Series 2006-AR6, Class 2A1A
0.4656% due 06/25/2047 (b)		2,946,205		1,407,069
IndyMac Index Mortgage Loan Trust, Series 2007-AR15, Class 2A1
5.6531% due 08/25/2037 (b)		2,333,653		1,262,903
Indymac Index Mortgage Loan Trust, Series 2007-AR5, Class 2A1
5.7644% due 05/25/2037 (b)		1,677,185		865,261
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2006-CB15, Class A4
5.814% due 06/12/2043 (b)		1,900,000		1,740,671
JPMorgan Mortgage Trust, Series 2005-A6, Class 7A1
4.9557% due 08/25/2035 (b)		83,011		66,738
Luminent Mortgage Trust, Series 2006-4, Class A1A
0.4556% due 05/25/2046 (b)		1,361,625		618,964
Master Adjustable Rate Mortgages Trust, Series 2007-R5, Class A1
5.6346% due 11/25/2035 (b)		1,336,450		734,824

The accompanying notes are an integral part of the financial statements.

330

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE OBLIGATIONS (continued)
Master Adjustable Rate Mortgages Trust., Series 2007-3, Class 12A1
0.4656% due 05/25/2047 (b)	$	3,631,190	$	1,660,678
Master Adjustable Rate Mortgages Trust., Series 2006-2, Class 3A1
4.8559% due 01/25/2036 (b)		108,281		88,244
Master Adjustable Rate Mortgages Trust., Series 2006-OA1, Class 1A1
0.4756% due 04/25/2046 (b)		2,261,146		1,136,341
MASTR Asset Securitization Trust, Series 2003-6, Class 1A1
5.50% due 07/25/2033 (b)		979,085		960,754
Merit Securities Corp., Series 11PA, Class B2
1.7606% due 09/28/2032 (b)(f)		286,610		201,911
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4
5.8397% due 05/12/2039 (b)		970,000		910,555
Morgan Stanley Mortgage Loan Trust, Series 2004-8AR, Class 4A1
3.8647% due 10/25/2034 (b)		526,049		394,552
Novastar Mortgage-Backed Notes, Series 2006-MTA1, Class 2A1A
0.4556% due 09/25/2046 (b)		1,366,331		658,479
Prime Mortgage Trust, Series 2006-DR1, Class 2A2
6.00% due 05/25/2035 (f)		1,719,677		1,219,493
Residential Asset Securitization Trust, Series 2004-A6, Class A1
5.00% due 08/25/2019		520,347		490,264
Structured Asset Mortgage Investments, Inc., Series 2005-AR3, Class 2A1
4.4676% due 08/25/2035 (b)		95,581		53,537
Structured Asset Mortgage Investments, Inc., Series 2006-AR6, Class 1A3
0.4556% due 07/25/2046 (b)		1,638,231		737,552
Thornburg Mortgage Securities Trust, Series 2007-4, Class 2A1
6.2057% due 09/25/2037 (b)		1,353,450		1,006,175
Thornburg Mortgage Securities Trust, Series 2007-4, Class 3A1
6.1938% due 09/25/2037 (b)		1,324,535		984,028
WaMu Mortgage Pass Through Certificates, Series 2006-AR8, Class 1A3
5.8355% due 08/25/2046 (b)		6,900,000		4,556,850
WaMu Mortgage Pass Through Certificates, Series 2007-HY3, Class 4A1
5.3192% due 03/25/2037 (b)		1,582,424		1,176,072
WaMu Mortgage Pass Through Certificates, Series 2007-OA6, Class 1A1B
1.8608% due 07/25/2047 (b)		4,029,905		870,546
WaMu Mortgage Pass-Through Certificates, Series 2005-AR17, Class A1A1
0.5356% due 12/25/2045 (b)		1,133,240		663,410
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $49,992,661)			$	37,289,416
ASSET BACKED SECURITIES - 3.33%
ACE Securities Corp., Series 2006-GP1, Class A
0.3956% due 02/25/2031 (b)		752,304		515,944
Amortizing Residential Collateral Trust, Series 2002-BC6, Class M2
2.0656% due 08/25/2032 (b) $63,146 $17,140
Asset Backed Securities Corp., Series 2003-HE2, Class M2
3.1228% due 04/15/2033 (b)		45,009		16,520
Bear Stearns Asset Backed Securities Trust, Series 2007-HE6, Class 1A1
1.5156% due 08/25/2037 (b)		1,692,219		1,108,328
Bear Stearns Asset Backed Securities, Inc., Series 2003-ABF1, Class A
0.6356% due 01/25/2034 (b)		39,953		27,447
Bear Stearns Asset Backed Securities, Inc., Series 2007-SD1, Class 1A2A
6.00% due 10/25/2036		2,455,698		1,361,726
Bear Stearns Asset Backed Securities, Inc., Series 2007-SD1, Class 1A3A
6.50% due 10/25/2036		2,393,220		1,280,476
Countrywide Asset-Backed Certificates, Series 2007-SD1, Class A1
0.7156% due 03/25/2047 (b)		503,991		245,047
Countrywide Asset-Backed Certificates, Series 2004-5, Class M4
1.5156% due 06/25/2034 (b)		182,256		12,347
Ellington Loan Acquisition Trust, Series 2007-1, Class A2A1
1.2656% due 05/26/2037 (b)(f)		1,614,353		1,324,796
Ellington Loan Acquisition Trust, Series 2007-1, Class A2C
1.5156% due 05/29/2037 (b)(f)		2,300,000		790,226
EMC Mortgage Loan Trust, Series 2003-B, Class A1
0.8156% due 11/25/2041 (b)(f)		176,108		134,267
GSAMP Trust, Series 2006-S4, Class A1
0.3556% due 05/25/2036 (b)		404,417		35,432
IndyMac Seconds Asset Backed Trust, Series 2006-A, Class A
0.3956% due 06/25/2036 (b)		1,417,047		89,550
Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-H1, Class 2A1
1.7656% due 10/25/2037 (b)		3,001,697		2,039,425
Mid State Trust, Series 6, Class A1
7.34% due 07/01/2035		493,505		450,297
Morgan Stanley Mortgage Loan Trust, Series 2006-4SL, Class A1
0.4156% due 03/25/2036 (b)		785,798		131,574
Nelnet Student Loan Trust, Series 2008-4, Class A4
1.9837% due 04/25/2024 (b)		810,000		816,802
RAAC Series, Series 2006-RP2, Class A
0.5156% due 02/25/2037 (b)(f)		935,625		514,424
RAAC Series, Series 2007-RP3, Class A
0.6456% due 10/25/2046 (b)		1,509,341		745,352
Residential Asset Mortgage Products Inc., Series 2003-RS4, Class AIIB
0.9256% due 05/25/2033 (b)		30,739		15,867
SACO I Trust, Inc., Series 2006-5, Class 1A
0.4156% due 04/25/2036 (b)		1,524,974		186,842
SACO I Trust, Inc., Series 2006-5, Class 2A3
0.4456% due 05/25/2036 (b)		1,228,857		9,946
SACO I Trust, Inc., Series 2006-6, Class A
0.3956% due 06/25/2036 (b)		971,518		71,361

The accompanying notes are an integral part of the financial statements.

331

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Sail Net Interest Margin Notes, Series 2004-2A, Class A
5.50% due 03/27/2034 (f)	$	23,428	$	2
Securitized Asset Backed Receivables LLC, Series 2007-BR2, Class A2
0.4956% due 02/25/2037 (b)		2,964,522		1,141,187
SLM Student Loan Trust, Series 2006-5, Class A2
0.4938% due 07/25/2017 (b)		393,310		392,885
Structured Asset Securities Corp., Series 2006-ARS1, Class A1
0.3756% due 02/25/2036 (b)(f)		801,410		73,761
Structured Asset Securities Corp., Series 2007-TC1, Class A
0.5656% due 04/25/2031 (b)(f)		3,266,500		2,182,713
Structured Asset Securities Corp., Series 2008-BC4, Class A3
0.5156% due 11/25/2037 (b)		910,523		818,259
TOTAL ASSET BACKED SECURITIES (Cost $33,022,119)			$	16,549,943
SUPRANATIONAL OBLIGATIONS - 0.33%
Supranational - 0.13%
Asian Development Bank
2.75% due 05/21/2014		660,000		661,647
Venezuela - 0.20%
Corporacion Andina de Fomento
6.875% due 03/15/2012		916,000		973,608
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $1,642,706)			$	1,635,255
COMMON STOCKS - 0.00%
Chemicals - 0.00%
Georgia Gulf Corp. *		595		17,841
TOTAL COMMON STOCKS (Cost $20,068)			$	17,841
PREFERRED STOCKS - 0.50%
Automobiles - 0.05%
General Motors Corp., Series C, 6.25% *		76,275		251,708
Chemicals - 0.07%
Georgia Gulf Corp. *		13,311		369,380
Financial Services - 0.38%
Federal Home Loan Mortgage Corp.,Series V, 5.57% *		121,625		192,168
Federal Home Loan Mortgage Corp., Series Z, 8.375% *		56,575		121,070
Federal National Mortgage Association, Series S, 8.25% *		39,250		78,500
Preferred Blocker, Inc., 7.00% (f)		2,440		1,135,134
Resona Preferred Global Securities, Ltd. (f)(k)		440,000		347,600
				1,874,472
TOTAL PREFERRED STOCKS (Cost $7,786,330)			$	2,495,560
TERM LOANS - 1.95%
Auto Services - 0.29%
Hertz Corp.
2.2533% due 01/21/2012 (b)		1,496,829		1,420,919
Business Services - 0.21%
First Data Corp.
5.9263% due 10/15/2014 (b)		1,237,950		1,031,367
Commercial Services - 0.28%
Aramark Corp.
3.3338% due 01/31/2014 (b)		1,500,000		1,403,663
Electrical Utilities - 0.54%
Calpine Corp.,Tranche B
4.335% due 03/29/2014 (b)		2,955,000		2,711,673
Medical-Hospitals - 0.37%
Community Health Systems, Inc., Tranche B
2.7288% due 07/02/2014 (b)		1,981,134		1,845,551
Semiconductors - 0.26%
Freescale Semiconductor, Inc.
2.0306% due 12/01/2013 (b)		1,709,121		1,275,432
TOTAL TERM LOANS (Cost $9,820,238)			$	9,688,605
WARRANTS - 0.00%
Hotels & Restaurants - 0.00%
Buffets Restaurants Holdings, Inc.
(Expiration Date 04/28/2014) *		164		0
TOTAL WARRANTS (Cost $0)			$	0
OPTIONS - 0.00%
Put Options - 0.00%
Eurodollar Futures
Expiration 09/14/2009 at $99.375 *		47,500		119
TOTAL OPTIONS (Cost $1,520)			$	119
REPURCHASE AGREEMENTS - 5.25%
JPMorgan Chase & Company Tri-Party Repurchase Agreement dated 08/31/2009 at 0.17% to be repurchased at $26,100,123 on 09/01/2009, collateralized by $26,623,000 Federal Home Loan Mortgage Corp., 4.25% due 09/04/2009 (valued at$26,621,988, including interest)	$	26,100,000	$	26,100,000
TOTAL REPURCHASE AGREEMENTS (Cost $26,100,000)			$	26,100,000
SHORT TERM INVESTMENTS - 14.62%
Federal Home Loan Bank Discount Notes
0.01% due 09/23/2009	$	5,000,000	$	4,999,328
Federal Home Loan Mortgage Corp., Discount Notes
0.00% due 12/22/2009		5,000,000		4,996,566
Federal National Mortgage Association Discount Notes
0.105% due 01/11/2010		20,000,000		19,981,944
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,772,704		17,747,069

The accompanying notes are an integral part of the financial statements.

332

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Bond Fund (continued)

	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS (continued)
U.S. Treasury Bills
0.00% due 10/29/2009	$	25,000,000	$	24,995,375
TOTAL SHORT TERM INVESTMENTS (Cost $72,719,766)			$	72,720,282
Total Investments (Strategic Bond Fund) (Cost $619,806,833) - 112.64%			$	560,227,733
Other assets and liabilities, net - (12.64)%				(62,867,867	)
TOTAL NET ASSETS - 100.00%			$	497,359,866

Strategic Income Fund

		Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 0.85%
U.S. Treasury Bonds - 0.08%
9.25% due 02/15/2016		$	260,000	$	357,642
U.S. Treasury Notes - 0.77%
2.625% due 06/30/2014			3,440,000		3,484,882
TOTAL U.S. TREASURY OBLIGATIONS (Cost $3,776,689)				$	3,842,524
U.S. GOVERNMENT AGENCY OBLIGATIONS - 2.73%
Federal Home Loan Mortgage Corp. - 0.77%
4.50% due 04/01/2039			3,442,829		3,461,253
Federal National Mortgage
Association - 1.96%
5.00% due 06/01/2023			1,217,316		1,271,572
5.375% due 06/12/2017			6,765,000		7,570,739
					8,842,311
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $11,450,340)				$	12,303,564
FOREIGN GOVERNMENT OBLIGATIONS - 17.79%
Brazil - 1.64%
Federative Republic of Brazil
10.25% due 01/10/2028	BRL		14,070,000		7,390,725
Canada - 3.62%
Ontario School Boards Financing Corp., Series 01A2
6.25% due 10/19/2016	CAD		3,815,000		3,959,724
Province of Ontario
4.50% due 03/08/2015			3,085,000		3,006,688
4.75% due 06/02/2013			4,610,000		4,531,718
6.25% due 06/16/2015	NZD		3,520,000		2,413,165
Province of Quebec
5.25% due 10/01/2013	CAD		2,370,000		2,375,109
					16,286,404
Colombia - 0.03%
Republic of Colombia
10.00% due 01/23/2012		$	110,000		127,600
France - 2.47%
Government of France
4.25% due 04/25/2019	EUR		3,114,000		4,740,966
4.75% due 10/25/2012	EUR		4,125,000	$	6,401,646
					11,142,612
Germany - 6.97%
Federal Republic of Germany
3.50% due 04/12/2013			1,710,000		2,569,909
3.75% due 01/04/2019			6,348,000		9,484,165
4.00% due 09/10/2010			3,200,000		4,736,841
4.25% due 07/04/2018			7,150,000		11,102,542
5.00% due 07/04/2012			2,240,000		3,487,431
					31,380,888
Mexico - 0.46%
Government of Mexico
5.625% due 01/15/2017		$	520,000		526,500
5.875% due 01/15/2014			550,000		580,250
6.375% due 01/16/2013			490,000		531,650
8.125% due 12/30/2019			360,000		429,120
					2,067,520
New Zealand - 0.29%
Government of New Zealand
6.00% due 12/15/2017	NZD		1,860,000		1,302,158
Spain - 0.97%
Kingdom of Spain
5.35% due 10/31/2011	EUR		2,840,000		4,391,802
United Kingdom - 1.34%
Government of United Kingdom
5.00% due 03/07/2012	GBP		1,635,000		2,872,054
5.00% due 03/07/2018			1,725,000		3,167,808
					6,039,862
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $75,931,489)				$	80,129,571
CORPORATE BONDS - 54.26%
Advertising - 0.05%
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016 ^		$	1,815,000		106,631
Vertis, Inc., Series A
18.50% due 10/01/2012			325,283		102,464
					209,095
Aerospace - 0.64%
Global Aviation Holdings, Ltd.
14.00% due 08/15/2013 (f)			3,015,000		2,864,250
Air Travel - 0.49%
Delta Airlines, Inc.
6.821% due 08/10/2022			1,426,824		1,262,739
US Airways Group, Inc.
7.25% due 05/15/2014			1,005,000		967,313
					2,230,052
Amusement & Theme Parks - 0.00%
HRP Myrtle Beach Operations LLC
10.07% due 04/01/2012 ^ (f)			1,685,000		169

The accompanying notes are an integral part of the financial statements.

333

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Apparel & Textiles - 0.19%
Hanesbrands, Inc., Series B
4.5925% due 12/15/2014 (b)		$	1,010,000	$	866,075
Auto Parts - 1.98%
Allison Transmission, Inc.
11.00% due 11/01/2015 (f)			2,900,000		2,610,000
Allison Transmission, Inc., PIK
11.25% due 11/01/2015 (f)			1,990,000		1,671,600
Goodyear Tire & Rubber Company
8.625% due 12/01/2011			530,000		535,300
10.50% due 05/15/2016			325,000		346,938
Lear Corp., Series B
8.75% due 12/01/2049 ^			940,000		507,600
Tenneco Automotive, Inc.
8.625% due 11/15/2014			3,690,000		3,247,200
					8,918,638
Automobiles - 1.02%
DaimlerChrysler N.A. Holding Corp., EMTN
4.375% due 03/21/2013	EUR		3,145,000		4,595,655
Broadcasting - 3.34%
Canadian Satellite Radio Holdings, Inc.
12.75% due 02/14/2016 (b)		$	132,650		98,202
Nexstar Broadcasting, Inc., PIK
7.00% due 01/15/2014 (f)			694,775		264,014
Radio One, Inc.
6.375% due 02/15/2013			225,000		74,250
8.875% due 07/01/2011			200,000		88,000
Salem Communications Corp.
7.75% due 12/15/2010			100,000		72,000
Sirius XM Radio, Inc.
7.00% due 12/01/2014 (f)			2,760,000		1,956,150
9.625% due 08/01/2013			5,180,000		4,584,300
13.00% due 08/01/2014 (f)			4,615,000		4,384,250
Sirius XM Radio, Inc., Series AI
10.00% due 06/01/2011			1,100,000		1,036,750
XM Satellite Radio, Inc.
11.25% due 06/15/2013 (f)			2,385,000		2,474,438
					15,032,354
Building Materials & Construction - 0.22%
Odebrecht Finance, Ltd.
7.50% due 10/18/2017 (f)			970,000		974,850
Business Services - 0.19%
Vangent, Inc.
9.625% due 02/15/2015			910,000		846,300
Cable & Television - 3.60%
Charter Communications Holdings I LLC
11.00% due 10/01/2015 ^			1,775,000		248,500
11.00% due 10/01/2015 ^			525,000		68,250
Charter Communications Holdings II LLC
10.25% due 09/15/2010 ^			2,410,000		2,678,112
10.25% due 10/01/2013 ^ (f)			4,232,000		4,427,730
10.25% due 09/15/2010 ^			210,000		233,363
Charter Communications Holdings LLC
8.75% due 11/15/2013 ^			1,100,000		1,111,000
Comcast Corp.
4.95% due 06/15/2016			805,000		816,470
CSC Holdings, Inc.
8.50% due 06/15/2015 (f)		$	1,450,000	$	1,464,500
Mediacom Broadband LLC
8.50% due 10/15/2015			75,000		73,313
Shaw Communications, Inc.
5.70% due 03/02/2017	CAD		610,000		584,625
6.50% due 06/02/2014			1,110,000		1,124,205
Time Warner Cable, Inc.
6.75% due 07/01/2018		$	1,515,000		1,673,649
8.25% due 04/01/2019			790,000		948,655
8.75% due 02/14/2019			620,000		763,233
Young Broadcasting, Inc.
10.00% due 03/01/2011 ^			1,790,000		197
					16,215,802
Cellular Communications - 2.13%
American Tower Corp., Series WI
7.00% due 10/15/2017			1,310,000		1,285,438
Centennial Communications Corp.
10.00% due 01/01/2013			2,735,000		2,803,375
Nextel Communications, Inc., Series D
7.375% due 08/01/2015			2,940,000		2,510,025
NII Capital Corp.
10.00% due 08/15/2016 (f)			695,000		688,050
Verizon Wireless Capital LLC
7.375% due 11/15/2013 (f)			2,000,000		2,292,546
					9,579,434
Chemicals - 0.36%
American Pacific Corp.
9.00% due 02/01/2015			1,645,000		1,484,613
Nova Chemicals Corp.
6.50% due 01/15/2012			125,000		121,406
					1,606,019
Commercial Services - 0.40%
Aramark Services, Inc.
8.50% due 02/01/2015			1,855,000		1,799,350
Containers & Glass - 2.66%
Ball Corp.
6.625% due 03/15/2018			195,000		185,737
Berry Plastics Holdings Corp.
8.875% due 09/15/2014			955,000		840,400
Graham Packaging Company
9.875% due 10/15/2014			375,000		373,125
Graphic Packaging International Corp.
8.50% due 08/15/2011			1,000,000		997,500
9.50% due 08/15/2013			3,005,000		3,012,512
9.50% due 06/15/2017 (f)			1,100,000		1,127,500
9.50% due 06/15/2017 (f)			405,000		415,125
OI European Group BV
6.875% due 03/31/2017 (f)	EUR		410,000		564,265
Owens-Brockway Glass Container, Inc.
8.25% due 05/15/2013		$	1,450,000		1,464,500
Sealed Air Corp.
7.875% due 06/15/2017 (f)			1,065,000		1,118,431
Smurfit-Stone Container Enterprises, Inc.
8.00% due 03/15/2017 ^			935,000		579,700
Stone Container Corp.
8.375% due 07/01/2012 ^			1,185,000		743,588

The accompanying notes are an integral part of the financial statements.

334

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Containers & Glass (continued)
US Corrugated, Inc.
10.00% due 06/12/2013		$	715,000	$	543,400
					11,965,783
Crude Petroleum & Natural Gas - 0.59%
Chesapeake Energy Corp.
2.25% due 12/15/2038			1,050,000		704,813
7.25% due 12/15/2018			2,125,000		1,944,375
					2,649,188
Electrical Utilities - 1.10%
Appalachian Power Company, Series K
5.00% due 06/01/2017			900,000		891,339
Cia de Transporte de Energia Electrica de Alta Tension SA
8.875% due 12/15/2016 (f)			1,085,000		744,581
Dominion Resources, Inc., Series A
5.60% due 11/15/2016			900,000		946,064
Texas Competitive Electric Holdings Company LLC, Series A
10.25% due 11/01/2015			3,600,000		2,385,000
					4,966,984
Energy - 0.66%
Enterprise Products Operating LP, Series B
5.60% due 10/15/2014 (f)			980,000		1,036,560
Exide Technologies, Series B
10.50% due 03/15/2013			2,025,000		1,944,000
					2,980,560
Financial Services - 6.81%
Discover Financial Services
10.25% due 07/15/2019			1,095,000		1,199,301
General Electric Capital Australia Funding Pty, Ltd., MTN
6.50% due 11/15/2011	AUD		2,870,000		2,400,264
General Electric Capital Corp, Series GMTN
7.625% due 12/10/2014	NZD		5,510,000		3,843,200
General Electric Capital Corp.
6.625% due 02/04/2010			3,745,000		2,588,325
ISA Capital do Brasil SA
8.80% due 01/30/2017 (f)		$	470,000		502,900
Local TV Finance LLC
9.25% due 06/15/2015 (f)			252,000		68,040
Macquarie Group, Ltd.
7.30% due 08/01/2014 (f)			595,000		618,736
New South Wales Treasury Corp, Series 14
5.50% due 08/01/2014	AUD		10,981,000		9,182,538
New South Wales Treasury Corp., Series 10RG
7.00% due 12/01/2010			6,945,000		6,060,263
Nexstar Finance, Inc.
7.00% due 01/15/2014		$	230,000		90,850
SLM Corp., MTN
8.45% due 06/15/2018			2,930,000		2,254,034
TAM Capital, Inc.
7.375% due 04/25/2017			1,205,000		988,100
Ucar Finance, Inc.
10.25% due 02/15/2012			36,000		34,965
VW Financial Services AG, EMTN
5.375% due 01/25/2012	EUR		565,000	$	849,692
					30,681,208
Food & Beverages - 0.66%
ASG Consolidated LLC/ASG Finance, Inc.
11.50% due 11/01/2011 (f)		$	615,000		559,650
Cosan SA Industria e Comercio
8.25% due 02/28/2049 (f)			2,000,000		1,695,000
Dole Food Company, Inc.
8.875% due 03/15/2011			210,000		209,475
Smithfield Foods, Inc.
10.00% due 07/15/2014 (f)			490,000		499,800
					2,963,925
Gas & Pipeline Utilities - 1.75%
Atlas Pipeline Partners LP
8.125% due 12/15/2015			200,000		164,000
MarkWest Energy Partners LP / MarkWest Energy Finance Corp., Series B
8.50% due 07/15/2016			2,150,000		2,031,750
8.75% due 04/15/2018 (f)			520,000		494,000
NGPL Pipeco LLC
7.119% due 12/15/2017 (f)			935,000		1,024,690
Regency Energy Partners LP
9.375% due 06/01/2016 (f)			2,510,000		2,510,000
Southern Union Company
7.20% until 11/01/2011, then variable due 11/01/2066			705,000		526,987
Targa Resources Partners LP
8.25% due 07/01/2016			760,000		680,200
Williams Partners Finance Corp.
7.25% due 02/01/2017			460,000		450,933
					7,882,560
Healthcare Products - 0.44%
Hanger Orthopedic Group, Inc.
10.25% due 06/01/2014			1,880,000		1,976,350
Healthcare Services - 0.29%
Sun Healthcare Group, Inc.
9.125% due 04/15/2015			1,325,000		1,305,125
Homebuilders - 0.12%
Beazer Homes USA, Inc.
4.625% due 06/15/2024			310,000		255,750
Standard Pacific Corp.
6.25% due 04/01/2014			340,000		266,900
					522,650
Hotels & Restaurants - 0.79%
CCM Merger, Inc.
8.00% due 08/01/2013 (f)			4,420,000		3,580,200
Household Products - 0.59%
Yankee Acquisition Corp., Series B
8.50% due 02/15/2015			2,555,000		2,312,275
9.75% due 02/15/2017 (f)			385,000		328,694
					2,640,969
Housing & Urban Development - 1.19%
Canada Housing Trust No. 1
4.60% due 09/15/2011	CAD		5,545,000		5,383,120

The accompanying notes are an integral part of the financial statements.

335

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Income Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Industrial Machinery - 0.53%
Baldor Electric Company
8.625% due 02/15/2017	$	520,000	$	517,400
Manitowoc, Inc.
7.125% due 11/01/2013		2,415,000		1,883,700
				2,401,100
Insurance - 0.48%
Liberty Mutual Group, Inc.
10.75% until 06/15/2038, then variable due 06/15/2058 (f)		1,930,000		1,698,400
Symetra Financial Corp.
8.30% until 10/15/2017, then variable due 10/15/2037 (f)		905,000		470,600
				2,169,000
International Oil - 0.21%
Weatherford International, Ltd.
9.625% due 03/01/2019		800,000		971,890
Leisure Time - 6.55%
AMC Entertainment, Inc.
8.00% due 03/01/2014		2,755,000		2,589,700
8.75% due 06/01/2019		765,000		759,262
Choctaw Resort Development Enterprise
7.25% due 11/15/2019 (f)		226,000		142,380
Chukchansi Economic Development Authority
8.00% due 11/15/2013 (f)		1,445,000		1,156,000
Cinemark USA, Inc.
8.625% due 06/15/2019 (f)		500,000		505,000
Fontainebleau Las Vegas
11.00% due 06/15/2015 ^ (f)		1,295,000		45,325
Great Canadian Gaming Corp.
7.25% due 02/15/2015 (f)		1,570,000		1,464,025
Greektown Holdings LLC
10.75% due 12/01/2013 ^ (f)		3,200,000		688,000
Jacobs Entertainment, Inc.
9.75% due 06/15/2014		2,425,000		2,182,500
Little Traverse Bay Bands of Odawa Indians
10.25% due 02/15/2014 ^ (f)		1,415,000		622,600
Majestic Star Casino LLC
9.50% due 10/15/2010 ^		1,360,000		856,800
Marquee Holdings, Inc.
12.00% due 08/15/2014		895,000		746,206
Mashantucket Western Pequot Tribe
8.50% due 11/15/2015 (f)		2,015,000		423,150
Mohegan Tribal Gaming Authority
7.125% due 08/15/2014		3,800,000		2,660,000
8.00% due 04/01/2012		3,355,000		2,751,100
MTR Gaming Group, Inc.
12.625% due 07/15/2014 (f)		2,345,000		2,286,375
MTR Gaming Group, Inc., Series B
9.00% due 06/01/2012		2,415,000		1,775,025
Penn National Gaming, Inc.
6.875% due 12/01/2011		100,000		100,000
Pokagon Gaming Authority
10.375% due 06/15/2014 (f)		954,000		963,540
Regal Cinemas Corp.
8.625% due 07/15/2019 (f)		295,000		297,950
Snoqualmie Entertainment Authority
9.125% due 02/01/2015 (f)		1,020,000		561,000
Turning Stone Resort Casino
9.125% due 09/15/2014 (f)		2,465,000		2,261,638
9.125% due 12/15/2010 (f)		1,300,000		1,261,000
Waterford Gaming LLC
8.625% due 09/15/2014 (f)		2,234,000		1,519,120
Yonkers Racing Corp.
11.375% due 07/15/2016 (f)		860,000		875,050
				29,492,746
Manufacturing - 0.56%
GRUPO KUO SAB de CV
9.75% due 10/17/2017 (f)		1,175,000		998,750
Ingersoll-Rand Global Holding Company, Ltd.
6.00% due 08/15/2013		1,240,000		1,316,946
Smiths Group PLC
7.20% due 05/15/2019 (f)		190,000		207,275
				2,522,971
Medical-Hospitals - 1.01%
Community Health Systems, Inc.
8.875% due 07/15/2015		2,240,000		2,248,400
HCA, Inc.
8.50% due 04/15/2019 (f)		1,820,000		1,842,750
9.125% due 11/15/2014		460,000		464,600
				4,555,750
Metal & Metal Products - 1.09%
CII Carbon LLC
11.125% due 11/15/2015 (f)		2,840,000		2,619,900
Mueller Water Products, Inc.
7.375% due 06/01/2017		3,115,000		2,305,100
				4,925,000
Mining - 1.52%
Drummond Company, Inc.
7.375% due 02/15/2016 (f)		3,830,000		3,370,400
Rio Tinto Finance USA, Ltd.
7.125% due 07/15/2028		1,465,000		1,549,750
9.00% due 05/01/2019		1,150,000		1,377,450
Teck Resources, Ltd.
10.75% due 05/15/2019		505,000		575,069
				6,872,669
Paper - 1.53%
AbitibiBowater, Inc.
11.50% due 06/30/2010 ^ (b)		2,460,000		1,914,699
Abitibi-Consolidated Company of Canada
13.75% due 04/01/2011 ^ (f)		1,885,000		1,790,750
Clearwater Paper Corp.
10.625% due 06/15/2016		195,000		208,894
International Paper Company
7.95% due 06/15/2018		1,180,000		1,252,435
NewPage Corp.
10.00% due 05/01/2012		960,000		520,800
PE Paper Escrow GmbH
12.00% due 08/01/2014 (f)		210,000		215,250
Pope & Talbot, Inc.
8.375% due 06/01/2013 ^		500,000		2,550
8.375% due 06/01/2013 ^		1,000,000		5,100
Verso Paper Holdings LLC
11.50% due 07/01/2014 (f)		510,000		499,800

The accompanying notes are an integral part of the financial statements.

336

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Income Fund (continued)

		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Paper (continued)
Verso Paper Holdings LLC, Series B
9.125% due 08/01/2014		$	750,000	$	489,375
					6,899,653
Petroleum Services - 0.39%
McMoRan Exploration Company
11.875% due 11/15/2014			1,810,000		1,751,175
Publishing - 0.03%
Idearc, Inc.
8.00% due 11/15/2016 ^			2,015,000		153,644
Railroads & Equipment - 0.09%
American Railcar Industries, Inc.
7.50% due 03/01/2014			440,000		408,100
Real Estate - 0.56%
Realogy Corp.
10.50% due 04/15/2014			2,395,000		1,425,025
Realogy Corp., PIK
11.00% due 04/15/2014			2,195,000		1,086,525
					2,511,550
Retail - 0.69%
Michaels Stores, Inc.
10.00% due 11/01/2014			400,000		382,000
11.375% due 11/01/2016			2,100,000		1,806,000
Staples, Inc.
9.75% due 01/15/2014			805,000		944,979
					3,132,979
Software - 0.45%
Oracle Corp.
5.75% due 04/15/2018			1,840,000		2,019,212
Steel - 0.74%
Allegheny Technologies, Inc.
9.375% due 06/01/2019			1,270,000		1,392,665
ArcelorMittal
9.85% due 06/01/2019			1,710,000		1,953,222
					3,345,887
Telecommunications Equipment &
Services - 2.24%
Axtel SAB de CV
7.625% due 02/01/2017 (f)			2,275,000		2,053,187
CC Holdings GS V LLC
7.75% due 05/01/2017 (f)			870,000		878,700
Citizens Communications Company
7.125% due 03/15/2019			710,000		646,100
Intelsat Bermuda, Ltd.
11.25% due 06/15/2016			720,000		750,600
11.25% due 02/04/2017 (f)			1,560,000		1,474,200
Intelsat Jackson Holdings, Ltd.
11.50% due 06/15/2016			825,000		839,438
Orascom Telecom Finance
7.875% due 02/08/2014 (f)			755,000		679,500
West Corp.
11.00% due 10/15/2016			2,995,000		2,762,888
					10,084,613
Telephone - 1.91%
AT&T, Inc.
6.70% due 11/15/2013		$	1,240,000	$	1,404,528
Cincinnati Bell, Inc.
8.375% due 01/15/2014			2,000,000		1,940,000
Sprint Capital Corp.
8.375% due 03/15/2012			3,305,000		3,309,131
8.75% due 03/15/2032			2,360,000		1,958,800
					8,612,459
Transportation - 1.42%
Navios Maritime Holdings, Inc.
9.50% due 12/15/2014			1,125,000		984,375
PHI, Inc.
7.125% due 04/15/2013			1,000,000		927,500
RailAmerica, Inc.
9.25% due 07/01/2017 (f)			1,215,000		1,256,006
Viterra, Inc.
8.50% due 07/07/2014	CAD		3,460,000		3,211,740
					6,379,621
TOTAL CORPORATE BONDS (Cost $252,497,029)				$	244,446,684
CONVERTIBLE BONDS - 0.21%
Cable & Television - 0.21%
Charter Communications, Inc.
6.50% due 10/01/2027 ^		$	2,170,000		933,100
TOTAL CONVERTIBLE BONDS (Cost $229,737)				$	933,100
COLLATERALIZED MORTGAGE
OBLIGATIONS - 13.28%
American Home Mortgage Assets, Series 2006-6, Class XP
2.8475% IO due 12/25/2046			19,235,488		498,921
American Home Mortgage Investment Trust, Series 2007-1, Class GIOP
2.0874% IO due 05/25/2047			14,398,711		575,948
Banc of America Commercial Mortgage, Inc., Series 2006-5, Class A4
5.414% due 09/10/2047			2,980,000		2,688,789
Bear Stearns Mortgage Funding Trust, Series 2006-AR1, Class 2A1
0.4856% due 08/25/2036 (b)			863,325		421,998
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4
5.399% due 09/15/2020 (b)			3,405,000		3,293,906
Countrywide Alternative Loan Trust, Series 2004 -28CB, Class 3A1
6.00% due 01/25/2035			2,688,864		2,210,752
Countrywide Alternative Loan Trust, Series 2007-25, Class 1A2
6.50% due 11/25/2037			2,527,730		1,565,613
Countrywide Alternative Loan Trust, Series 2005-59, Class 2X
3.1733% IO due 11/20/2035			11,248,120		214,389
Countrywide Alternative Loan Trust, Series 2006-OA10, Class XPP
1.8365% IO due 08/25/2046			28,899,049		1,029,517

The accompanying notes are an integral part of the financial statements.

337

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Income Fund (continued)

	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
Countrywide Alternative Loan Trust, Series 2006-OA12, Class X
3.6002% IO due 09/20/2046	$	10,343,826	$	321,629
Crown Castle Towers LLC, Series 2006-1A, Class F
6.6496% due 11/15/2036 (f)		840,000		823,200
Crown Castle Towers LLC, Series 2006-1A, Class G
6.7954% due 11/15/2036 (f)		985,000		965,300
DB Master Finance LLC, Series 2006-1, Class-A2
5.779% due 06/20/2031 (f)		1,050,000		1,011,381
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (f)		1,000,000		875,630
Downey Savings & Loan Association Mortgage Loan Trust, Series 2005-AR1, Class X2
2.8311% IO due 03/19/2045		23,226,274		863,727
Downey Savings & Loan Association Mortgage Loan Trust, Series 2005-AR2, Class X2
2.8394% IO due 03/19/2045		37,070,930		1,436,499
Federal Home Loan Mortgage Corp., Series 3154, Class PM
5.50% due 05/15/2034		4,050,000		4,308,113
Federal Home Loan Mortgage Corp., Series 3228, Class PL
5.50% due 10/15/2034		4,850,000		5,139,124
Federal National Mortgage Association, Series 2006-117, Class PD
5.50% due 07/25/2035		5,055,000		5,319,535
Federal National Mortgage Association, Series 2006-65, Class TE
5.50% due 05/25/2035		2,065,000		2,195,057
Federal National Mortgage Association, Series 2006-84, Class MP
5.50% due 08/25/2035		5,700,000		6,065,661
First Horizon Alternative Mortgage Securities, Series 2006-RE1, Class A1
5.50% due 05/25/2035		1,578,410		1,011,663
Global Tower Partners Acquisition LLC, Series 2007-1A, Class G
7.8737% due 05/15/2037 (f)		565,000		503,335
Greenpoint Mortgage Funding Trust, Series 2005-AR4, Class 4A2
0.6256% due 10/25/2045 (b)		1,832,127		603,550
Greenpoint Mortgage Funding Trust, Series 2006-AR1, Class A2A
0.6356% due 02/25/2036 (b)		1,106,629		327,248
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4
6.116% due 07/10/2038 (b)		3,310,000		2,890,406
Harborview Mortgage Loan Trust, Series 2005-8, Class 1X
3.0457% IO due 09/19/2035		10,970,925		378,840
Harborview Mortgage Loan Trust, Series 2006-SB1, Class A1A
1.9008% due 12/19/2036 (b)		1,996,945		686,573
Harborview Mortgage Loan Trust, Series 2007-3, Class ES
0.35% due 05/19/2047		26,666,153		108,331
Harborview Mortgage Loan Trust, Series 2007-4, Class ES
0.35% due 07/19/2047		27,250,121		119,219
Harborview Mortgage Loan Trust, Series 2007-6, Class ES
0.3425% due 08/19/2037 (f)		20,077,970		81,567
Harborview NIM Corp., Series 2007-3A, Class N1
6.654% due 05/19/2037 (f)		12,135		61
IndyMac Index Mortgage Loan Trust, Series 2005-AR18, Class 1X
3.1143% IO due 10/25/2036		29,546,581		886,397
IndyMac Index Mortgage Loan Trust, Series 2005-AR18, Class 2X
2.8201% IO due 10/25/2036		32,278,690		768,233
Luminent Mortgage Trust, Series 2006-1, Class X
3.3266% IO due 04/25/2036		8,784,973		175,699
Morgan Stanley Mortgage Loan Trust, Series 2004-9, Class 1A
6.11% due 10/25/2034 (b)		2,130,201		1,972,921
Residential Accredit Loans, Inc., Series 2007-QS10, Class A1
6.50% due 09/25/2037		1,684,084		1,043,079
Residential Accredit Loans, Inc., Series 2007-QS11, Class A1
7.00% due 10/25/2037		1,408,999		896,036
SBA CMBS Trust, Series 2006-1A, Class H
7.389% due 11/15/2036 (f)		525,000		514,500
SBA CMBS Trust, Series 2006-1A, Class J
7.825% due 11/15/2036 (f)		780,000		764,400
WAMU Mortgage Pass Through Certificates, Series 2005-AR13, Class X
2.3509% IO due 10/25/2045		65,793,893		1,398,120
WAMU Mortgage Pass Through Certificates, Series 2005-AR13, Class B1
0.8656% due 10/25/2045 (b)		1,948,999		202,894
WAMU Mortgage Pass Through Certificates, Series 2005-AR6, Class B1
0.8656% due 04/25/2045 (b)		3,179,051		304,119
WAMU Mortgage Pass Through Certificates, Series 2007-OA5, Class 1XPP
0.9551% IO due 06/25/2017		62,944,624		491,755
WAMU Mortgage Pass Through Certificates, Series 2007-OA6, Class 1XPP
0.896% IO due 07/25/2047		36,849,971		259,103
Washington Mutual Mortgage Pass Through Certificates, Series 2007-OA4, Class XPPP
0.8977% IO due 04/25/2047		26,441,573		181,786
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR12, Class 1A1
6.0272% due 09/25/2036 (b)		1,979,581		1,435,134
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $59,204,775)			$	59,829,658
ASSET BACKED SECURITIES - 0.72%
Dominos Pizza Master Issuer LLC, Series 2007-1, Class M1
7.629% due 04/27/2037 (f)		1,475,000		914,500
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2
5.261% due 04/25/2037 (f)		2,155,000		1,752,910
Lehman XS Trust, Series 2005-5N, Class 3A2
0.6256% due 11/25/2035 (b)		509,730		139,646

The accompanying notes are an integral part of the financial statements.

338

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Strategic Income Fund (continued)
		Shares or Principal Amount		Value
ASSET BACKED SECURITIES
(continued)
Lehman XS Trust, Series 2006-2N, Class 1A2
0.6056% due 02/25/2046 (b)		$	1,965,869	$	418,457
TOTAL ASSET BACKED SECURITIES (Cost $4,805,347)				$	3,225,513
SUPRANATIONAL OBLIGATIONS - 5.85%
Supranational - 5.85%
Council of Europe Development Bank
5.25% due 05/27/2013	AUD		2,760,000		2,290,508
European Investment Bank
6.25% due 04/15/2014	GBP		930,000		1,716,021
European Investment Bank, EMTN
7.00% due 01/18/2012	NZD		2,550,000		1,836,472
Instituto de Credito Oficial, EMTN
5.00% due 12/07/2009	GBP		1,680,000		2,765,951
Inter-American Development Bank, Series INTL
7.25% due 05/24/2012	NZD		9,930,000		7,227,255
Inter-American Development Bank, Series MPLE
4.25% due 12/02/2012	CAD		495,000		478,663
Inter-American Development Bank, Series MTN
5.375% due 05/27/2014	AUD		5,050,000		4,160,584
International Bank for Reconstruction & Development
5.375% due 12/15/2014	NZD		5,410,000		3,646,231
International Finance Corp., MTN
7.50% due 02/28/2013	AUD		2,515,000		2,246,063
					26,367,748
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $25,989,860)				$	26,367,748
COMMON STOCKS - 0.99%
Advertising - 0.00%
Vertis Holdings, Inc. *			325		0
Broadcasting - 0.41%
Sirius XM Radio, Inc. *			2,757,406		1,857,113
Containers & Glass - 0.06%
Pactiv Corp. *			10,680		265,398
Retail Trade - 0.49%
CVS Caremark Corp.			59,000		2,213,680
Telecommunications Equipment &
Services - 0.03%
Chunghwa Telecom Company, Ltd., ADR			6,409		109,587
TOTAL COMMON STOCKS (Cost $5,573,915)				$	4,445,778
TERM LOANS - 3.08%
Air Travel - 0.82%
Delta Airlines, Inc.
3.5256% due 04/30/2014 (b)			3,462,878		2,645,393
US Airways Group, Inc.
2.7628% due 03/23/2014 (b)			1,946,667		1,048,280
					3,693,673
Auto Parts - 0.52%
Lear Corp.
0.00% due 04/25/2012 (b)(m)			2,903,594		2,358,125
Healthcare Products - 0.12%
Bausch & Lomb, Inc.
4.781% due 04/11/2015 (b)	EUR		403,850	$	539,879
Leisure Time - 0.40%
Great Canadian Gaming Corp.
1.9544% due 02/07/2014 (b)		$	1,316,250		1,155,009
Greektown Holdings LLC
9.75% due 09/09/2009 (b)			279,505		273,915
9.75% due 09/09/2009 (b)			367,391		360,044
					1,788,968
Publishing - 0.81%
Dex Media West LLC
0.00% due 10/24/2014 (b)(m)			940,000		794,300
Idearc, Inc.
3.220% due 11/17/2014 ^ (b)			5,032,236		2,310,637
Quebecor World Capital Corp.
9.00% due 07/10/2012 (b)			565,000		560,762
					3,665,699
Retail - 0.41%
Michaels Stores, Inc.
2.5625% due 10/31/2013 (b)			2,078,967		1,834,040
TOTAL TERM LOANS (Cost $12,712,885)				$	13,880,384
OPTIONS - 0.06%
Call Options - 0.05%
Comcast Corp.
Expiration 01/16/2010 at $25.00 *			26,000,000		13,000
Over The Counter Purchase Call on the EUR vs.USD
Expiration 01/29/2010 at $1.25 *			23,750,000		77,971
Over The Counter Purchase Call on the USD vs.CAD
Expiration 02/26/2010 at $1.30 *			10,700,000		35,866
Expiration 04/20/2010 at $1.30 *			10,450,000		49,878
Expiration 10/09/2009 at $1.30 *			9,500,000		9
Over The Counter Purchase Call on the USD vs. JPY
Expiration 09/30/2009 at $100.00 *			20,000,000		20,920
Expiration 03/12/2010 at $110.00 *			19,000,000		28,880
Expiration 04/01/2010 at $115.00 *			18,700,000		10,996
					237,520
Put Options - 0.01%
Over The Counter Purchase Call on the EUR vs. USD
Expiration 12/02/2009 at $1.292 *			19,000,000		53,224
TOTAL OPTIONS (Cost $2,542,095)				$	290,744
SHORT TERM INVESTMENTS - 0.62%
Federal Home Loan Bank Discount Notes
0.08% due 09/01/2009		$	2,800,000	$	2,800,000
TOTAL SHORT TERM INVESTMENTS (Cost $2,800,000)				$	2,800,000
Total Investments (Strategic Income Fund) (Cost $457,514,161) - 100.44%				$	452,495,268
Other assets and liabilities, net - (0.44)%					(2,003,654	)
TOTAL NET ASSETS - 100.00%				$	450,491,614

The accompanying notes are an integral part of the financial statements.

339

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund
		Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 24.01%
U.S. Treasury Bonds - 6.96%
2.75% due 10/31/2013		$	22,420,000	$	23,050,673
3.50% due 02/15/2039			500,000		420,781
4.375% due 02/15/2038			2,000		2,063
4.50% due 05/15/2038			4,005,000		4,217,766
5.25% due 02/15/2029			1,875,000		2,147,167
7.875% due 02/15/2021			900,000		1,236,937
					31,075,387
U.S. Treasury Notes - 17.05%
0.875% due 02/28/2011 to 04/30/2011			22,300,000		22,352,527
1.125% due 06/30/2011			11,700,000		11,752,100
1.50% due 10/31/2010 to 07/15/2012			17,450,000		17,522,347
1.75% due 01/31/2014 to 03/31/2014			9,520,000		9,322,947
1.875% due 02/28/2014 to 04/30/2014			1,900,000		1,869,555
2.75% due 02/15/2019			4,580,000		4,335,616
3.125% due 05/15/2019			1,000,000		951,250
3.25% due 07/31/2016			1,000,000		995,156
3.75% due 11/15/2018			6,868,000		7,052,578
					76,154,076
TOTAL U.S. TREASURY OBLIGATIONS (Cost $107,431,816)				$	107,229,463
U.S. GOVERNMENT AGENCY OBLIGATIONS - 46.43%
Federal Farm Credit Bank - 0.37%
3.875% due 10/07/2013			775,000		815,170
4.875% due 12/16/2015			780,000		843,398
					1,658,568
Federal Home Loan Bank - 1.78%
1.625% due 07/27/2011			2,600,000		2,623,023
3.875% due 01/15/2010 to 06/14/2013			4,030,000		4,223,905
5.00% due 11/17/2017			1,020,000		1,102,750
					7,949,678
Federal Home Loan Mortgage Corp. - 14.74%
3.75% due 06/28/2013			1,950,000		2,063,279
3.875% due 06/29/2011			2,000,000		2,105,504
4.00% due 04/01/2039			1,801,581		1,761,820
4.125% due 09/27/2013			2,500,000		2,682,295
4.50% due 07/01/2023 to 03/01/2039			8,435,146		8,588,190
5.00% due 07/01/2035 to 07/01/2039			13,536,165		13,943,773
5.50% due 08/23/2017 to 11/01/2038			15,753,828		16,532,955
6.00% due 06/01/2035 to 10/01/2038			10,840,010		11,466,135
6.25% due 07/15/2032			150,000		180,491
6.50% due 08/01/2038			2,402,593		2,565,707
6.75% due 09/15/2029			2,100,000		2,592,131
7.00% due 11/01/2037			1,224,818		1,331,750
					65,814,030
Federal National Mortgage
Association - 23.95%
1.375% due 04/28/2011			1,100,000		1,108,133
3.25% due 04/09/2013 (a)			4,000,000		4,195,508
3.875% due 07/12/2013			2,000,000		2,131,416
4.00% due 07/01/2018 to 06/01/2019			242,171		250,598
4.375% due 10/15/2015			2,000,000		2,132,960
4.50% due 04/01/2018 to 06/01/2039			10,954,071		11,138,048
4.632% due 01/01/2035 (b)			939,959		964,232
4.834% due 04/01/2036 (b)			1,555,373		1,622,042
4.925% due 07/01/2034 (b)			1,969,098		2,077,188
5.00% due 05/01/2019 to 03/01/2037			17,781,152		18,409,162
5.041% due 09/01/2037 (b)			2,104,850		2,218,552
5.50% due 09/01/2017 to 01/01/2037			24,718,818		25,917,113
5.50% due 05/01/2036 (b)			468,783		494,340
5.681% due 04/01/2037 (b)			2,097,251		2,227,018
5.886% due 04/01/2037 (b)			1,998,507		2,118,575
6.00% due 08/01/2023 to 08/01/2036			15,380,037		16,313,623
5.997% due 10/01/2037 (b)			1,461,576		1,551,553
6.125% due 03/15/2012			500,000		557,979
6.50% due 07/01/2031 to 10/01/2038			6,991,188		7,508,023
6.625% due 11/15/2030			2,000,000		2,512,452
7.00% due 10/01/2038			1,203,711		1,314,443
7.25% due 05/15/2030			150,000		200,821
					106,963,779
Government National Mortgage
Association - 5.35%
4.50% due 06/15/2023 to 07/20/2039			4,915,696		4,975,589
5.00% due 11/20/2038 to 08/15/2039			4,936,132		5,090,891
5.50% due 08/15/2023 to 08/20/2039	��		6,604,103		6,920,687
6.00% due 07/15/2038 to 10/15/2038			4,851,079		5,129,068
6.50% due 10/20/2038			1,661,753		1,767,819
					23,884,054
Tennessee Valley Authority - 0.16%
6.75% due 11/01/2025			580,000		698,709
The Financing Corp. - 0.08%
8.60% due 09/26/2019			265,000		352,843
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $198,807,378)				$	207,321,661
FOREIGN GOVERNMENT OBLIGATIONS - 1.59%
Austria - 0.09%
Government of Austria
5.00% due 05/19/2014 (f)			364,000		390,120
Brazil - 0.31%
Federative Republic of Brazil
5.875% due 01/15/2019			720,000		743,400
6.00% due 01/17/2017			400,000		418,000
7.125% due 01/20/2037			220,000		243,100
					1,404,500
Canada - 0.59%
Government of Canada
5.00% due 02/15/2012			160,000		166,020
5.125% due 01/26/2017			245,000		258,777
5.20% due 02/21/2017			200,000		212,689
6.50% due 01/15/2026			260,000		303,732
7.50% due 07/15/2023			200,000		248,170
7.50% due 09/15/2029			405,000		530,106
Export Development Canada
3.50% due 05/16/2013			240,000		249,381
Province of Ontario
4.50% due 02/03/2015			500,000		537,228

The accompanying notes are an integral part of the financial statements.

340

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
FOREIGN GOVERNMENT OBLIGATIONS
(continued)
Canada (continued)
Province of Saskatchewan
8.00% due 02/01/2013	$	115,000	$	131,737
				2,637,840
Israel - 0.09%
Government of Israel
5.125% due 03/26/2019		210,000		210,370
5.50% due 09/18/2023		195,000		210,879
				421,249
Italy - 0.22%
Republic of Italy
6.875% due 09/27/2023		815,000		977,102
Mexico - 0.29%
Government of Mexico
5.95% due 03/19/2019		1,111,000		1,128,776
9.875% due 02/01/2010		150,000		155,400
				1,284,176
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $7,041,912)			$	7,114,987
CORPORATE BONDS - 21.63%
Aerospace - 0.36%
Boeing Company
8.75% due 09/15/2031		275,000		371,779
General Dynamics Corp.
5.25% due 02/01/2014		265,000		288,656
Northrop Grumman Corp.
7.75% due 03/01/2016		225,000		263,577
United Technologies Corp.
5.375% due 12/15/2017		285,000		310,345
6.125% due 02/01/2019		350,000		392,493
				1,626,850
Agriculture - 0.10%
Archer-Daniels-Midland Company
7.00% due 02/01/2031		150,000		175,372
Cargill, Inc.
7.35% due 03/06/2019 (f)		250,000		284,884
				460,256
Aluminum - 0.12%
Alcoa, Inc.
5.72% due 02/23/2019		20,000		17,690
6.75% due 07/15/2018		325,000		316,533
Rio Tinto Alcan, Inc.
6.125% due 12/15/2033		240,000		219,518
				553,741
Automobiles - 0.07%
DaimlerChrysler NA Holding Corp.
5.875% due 03/15/2011		285,000		296,600
Banking - 2.28%
Bank of America Corp.
2.10% due 04/30/2012		540,000		545,796
3.125% due 06/15/2012		350,000		363,515
5.42% due 03/15/2017		300,000		274,604
6.50% due 08/01/2016		200,000		206,098
Bank of America Corp. (continued)
7.80% due 02/15/2010		333,000		341,462
Bank of New York Mellon Corp.
6.375% due 04/01/2012		75,000		78,795
Bank of New York Mellon Corp., MTN
4.50% due 04/01/2013		435,000		459,558
Bank One Corp.
7.875% due 08/01/2010		485,000		512,907
Barclays Bank PLC
5.45% due 09/12/2012		290,000		310,403
BB&T Corp.
5.20% due 12/23/2015		290,000		294,121
Deutsche Bank AG
4.875% due 05/20/2013		575,000		607,555
Deutsche Bank AG/London
3.875% due 08/18/2014		380,000		382,029
Eksportfinans A/S
5.50% due 06/26/2017		200,000		210,201
HSBC Holdings PLC
6.50% due 09/15/2037		580,000		599,832
Keycorp, MTN
6.50% due 05/14/2013		305,000		310,617
Kreditanstalt fuer Wiederaufbau
3.25% due 03/15/2013		780,000		799,928
4.375% due 03/15/2018		480,000		500,625
5.125% due 03/14/2016		450,000		495,528
Landwirtschaftliche Rentenbank
3.875% due 03/15/2010		360,000		366,605
5.125% due 02/01/2017		210,000		227,100
Oesterreichische Kontrollbank AG
2.875% due 03/15/2011		190,000		195,378
4.875% due 02/16/2016		329,000		344,556
Royal Bank of Scotland Group PLC
5.00% due 11/12/2013		300,000		271,331
State Street Corp.
2.15% due 04/30/2012		215,000		217,923
SunTrust Banks, Inc.
6.00% due 09/11/2017		290,000		279,796
UBS AG/Stamford Branch, MTN
5.75% due 04/25/2018		520,000		510,858
Union Bank of California, N.A.
5.95% due 05/11/2016		250,000		243,846
US Bank NA, BKNT
6.375% due 08/01/2011		200,000		216,427
				10,167,394
Broadcasting - 0.24%
British Sky Broadcasting Group PLC
9.50% due 11/15/2018 (f)		280,000		359,251
CBS Corp.
8.875% due 05/15/2019		200,000		215,104
Discovery Communications LLC
5.625% due 08/15/2019		160,000		163,606
News America, Inc.
6.65% due 11/15/2037		335,000		344,496
				1,082,457

The accompanying notes are an integral part of the financial statements.

341

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Building Materials & Construction - 0.02%
CRH America, Inc.
8.125% due 07/15/2018	$	100,000	$	107,531
Cable & Television - 0.80%
Comcast Cable Communications
8.875% due 05/01/2017		190,000		227,119
Comcast Corp.
5.70% due 07/01/2019		190,000		200,500
6.50% due 11/15/2035		435,000		464,457
COX Communications, Inc.
9.375% due 01/15/2019 (f)		95,000		121,093
Rogers Cable, Inc.
7.875% due 05/01/2012		265,000		296,878
TCI Communications, Inc.
7.125% due 02/15/2028		308,000		326,790
Time Warner Companies, Inc.
7.25% due 10/15/2017		300,000		338,350
Time Warner Entertainment Company LP
8.375% due 07/15/2033		450,000		541,926
Time Warner, Inc.
6.75% due 04/15/2011		345,000		366,775
7.625% due 04/15/2031		120,000		131,780
Viacom, Inc.
6.25% due 04/30/2016		345,000		370,130
7.875% due 07/30/2030		225,000		203,254
				3,589,052
Cellular Communications - 0.32%
AT&T Wireless Services, Inc.
7.875% due 03/01/2011		290,000		314,602
Verizon Wireless Capital LLC
7.375% due 11/15/2013 (f)		330,000		378,270
Vodafone Group PLC
5.375% due 01/30/2015		515,000		541,949
5.45% due 06/10/2019		205,000		213,315
				1,448,136
Chemicals - 0.19%
Agrium, Inc.
6.75% due 01/15/2019		250,000		265,083
E.I. Du Pont de Nemours & Company
5.75% due 03/15/2019		260,000		283,909
5.875% due 01/15/2014		265,000		293,778
				842,770
Chemicals-Diversified - 0.06%
Dow Chemical Company
5.70% due 05/15/2018		140,000		131,305
5.90% due 02/15/2015		150,000		149,734
				281,039
Computers & Business Equipment - 0.35%
Cisco Systems, Inc.
5.25% due 02/22/2011		150,000		158,709
Dell, Inc.
4.70% due 04/15/2013		225,000		236,112
Hewlett-Packard Company
4.75% due 06/02/2014		240,000		256,908
International Business Machines Corp.
6.50% due 10/15/2013		665,000		758,906
Pitney Bowes, Inc.
6.25% due 03/15/2019		120,000		132,990
				1,543,625
Cosmetics & Toiletries - 0.15%
Kimberly-Clark Corp.
7.50% due 11/01/2018		240,000		298,040
Procter & Gamble Company
4.60% due 01/15/2014		345,000		370,439
				668,479
Crude Petroleum & Natural Gas - 0.24%
Anadarko Finance Company, Series B
6.75% due 05/01/2011		360,000		381,987
Apache Corp.
6.00% due 09/15/2013		200,000		219,917
Petrobras International Finance Company
8.375% due 12/10/2018		265,000		308,725
XTO Energy, Inc.
5.50% due 06/15/2018		169,000		174,086
				1,084,715
Domestic Oil - 0.18%
Devon Financing Corp.
6.875% due 09/30/2011		240,000		261,894
Marathon Oil Corp.
6.00% due 10/01/2017		275,000		284,836
Valero Energy Corp.
6.125% due 06/15/2017		275,000		274,515
				821,245
Electrical Equipment - 0.05%
Emerson Electric Company
4.875% due 10/15/2019		215,000		224,507
Electrical Utilities - 1.82%
Carolina Power & Light Company
5.30% due 01/15/2019		145,000		154,910
CenterPoint Energy Resources Corp.
7.875% due 04/01/2013		240,000		269,683
Consolidated Edison Company of New York, Inc.
7.125% due 12/01/2018		265,000		311,600
Constellation Energy Group, Inc.
7.60% due 04/01/2032		58,000		60,339
Dominion Resources, Inc.
5.00% due 03/15/2013		262,000		273,269
5.20% due 08/15/2019		310,000		319,686
Duke Energy Carolinas
5.625% due 11/30/2012		300,000		328,750
Duke Energy Carolinas, Series C
7.00% due 11/15/2018		270,000		320,346
E.ON International Finance BV
5.80% due 04/30/2018 (f)		385,000		410,554
Enel Finance International SA
6.25% due 09/15/2017 (f)		144,000		157,770
Entergy Texas, Inc.
7.125% due 02/01/2019		135,000		148,881
Exelon Corp.
6.75% due 05/01/2011		650,000		694,866

The accompanying notes are an integral part of the financial statements.

342

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Electrical Utilities (continued)
FirstEnergy Corp.
6.45% due 11/15/2011	$	134,000	$	143,379
7.375% due 11/15/2031		250,000		275,986
FirstEnergy Solutions Corp.
6.05% due 08/15/2021 (f)		150,000		151,635
FPL Group Capital, Inc.
7.875% due 12/15/2015		265,000		320,875
Georgia Power Company
5.95% due 02/01/2039		265,000		287,004
Hydro-Quebec, Series HY
8.40% due 01/15/2022		50,000		62,107
Hydro-Quebec, Series JL
6.30% due 05/11/2011		400,000		433,434
Indiana Michigan Power Company
6.05% due 03/15/2037		295,000		303,672
Israel Electric Corp., Ltd.
7.25% due 01/15/2019 (f)		170,000		179,420
Oncor Electric Delivery Company
7.50% due 09/01/2038		140,000		175,921
Pacific Gas & Electric Company
6.25% due 12/01/2013		355,000		395,544
Progress Energy, Inc.
7.10% due 03/01/2011		146,000		155,281
Public Service Electric & Gas Company
6.33% due 11/01/2013		355,000		393,714
San Diego Gas & Electric Company, Series FFF
6.125% due 09/15/2037		160,000		182,122
Scottish Power PLC
4.91% due 03/15/2010		130,000		132,359
Southern California Edison Company, Series 05-E
5.35% due 07/15/2035		345,000		353,085
Southwestern Public Service Company, Series G
8.75% due 12/01/2018		155,000		192,365
Virginia Electric and Power Company
8.875% due 11/15/2038		190,000		263,661
Wisconsin Electric Power Company
6.00% due 04/01/2014		230,000		255,249
				8,107,467
Energy - 0.32%
CalEnergy Company, Inc.
8.48% due 09/15/2028		365,000		472,620
DTE Energy Company
6.35% due 06/01/2016		215,000		220,283
Enbridge Energy Partners LP
9.875% due 03/01/2019		345,000		426,787
KeySpan Corp.
8.00% due 11/15/2030		265,000		304,188
				1,423,878
Financial Services - 5.44%
Abbey National PLC
7.95% due 10/26/2029		200,000		202,300
Allied Capital Corp.
6.625% due 07/15/2011		240,000		162,503
American Express Bank FSB, BKNT
6.00% due 09/13/2017		405,000		399,632
American Express Bank FSB, GMTN
3.15% due 12/09/2011		205,000		213,046
American Express Credit Corp., Series C
7.30% due 08/20/2013		240,000		263,063
Bear Stearns Companies, Inc.
7.25% due 02/01/2018		635,000		724,131
BP Capital Markets PLC
5.25% due 11/07/2013		220,000		240,878
Capital One Financial Corp.
7.375% due 05/23/2014		290,000		316,345
Capital One Financial Corp., MTN
5.70% due 09/15/2011		250,000		257,963
Caterpillar Financial Services Corp.
6.125% due 02/17/2014		260,000		286,296
Citigroup, Inc.
2.125% due 04/30/2012		560,000		566,373
2.875% due 12/09/2011		210,000		216,721
5.50% due 04/11/2013		345,000		343,395
5.875% due 02/22/2033		575,000		436,693
6.125% due 11/21/2017		833,000		785,813
8.50% due 05/22/2019		190,000		207,685
Credit Suisse First Boston USA, Inc.
4.875% due 01/15/2015		345,000		360,073
6.50% due 01/15/2012		510,000		552,754
Discover Financial Services
10.25% due 07/15/2019		300,000		328,576
Dresdner Bank AG
7.25% due 09/15/2015		220,000		207,064
FleetBoston Financial Corp.
6.70% due 07/15/2028		317,000		290,203
General Electric Capital Corp.
2.20% due 06/08/2012		290,000		293,998
3.00% due 12/09/2011		350,000		362,173
6.125% due 02/22/2011		510,000		539,027
6.75% due 03/15/2032		635,000		629,898
General Electric Capital Corp., MTN
5.625% due 09/15/2017		640,000		641,407
6.875% due 01/10/2039		290,000		287,615
General Electric Capital Corp., Series GMTN
6.00% due 08/07/2019		150,000		151,137
Goldman Sachs Group, Inc.
3.25% due 06/15/2012		315,000		328,492
5.50% due 11/15/2014		690,000		722,482
6.125% due 02/15/2033		345,000		360,167
6.15% due 04/01/2018		515,000		543,624
6.875% due 01/15/2011		515,000		549,511
7.50% due 02/15/2019		360,000		414,466
HSBC Finance Corp.
8.00% due 07/15/2010		610,000		639,939
International Lease Finance Corp., MTN
5.45% due 03/24/2011		100,000		87,971
Japan Finance Corp. Municipal Enterprises, DTC
4.625% due 04/21/2015		100,000		104,656
John Deere Capital Corp., MTN
4.95% due 12/17/2012		480,000		515,708
JPMorgan Chase & Company
3.125% due 12/01/2011		350,000		363,406
4.75% due 05/01/2013		350,000		370,298
6.40% due 05/15/2038		345,000		380,979
6.75% due 02/01/2011		428,000		455,586

The accompanying notes are an integral part of the financial statements.

343

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
MBNA Corp.
5.00% due 06/15/2015	$	400,000	$	390,144
Merrill Lynch & Company, Inc.
5.45% due 07/15/2014		575,000		577,629
6.875% due 11/15/2018		325,000		331,953
7.75% due 05/14/2038		345,000		366,349
Merrill Lynch & Company, Inc., MTN
6.875% due 04/25/2018		260,000		265,481
Morgan Stanley
2.25% due 03/13/2012		200,000		203,513
3.25% due 12/01/2011		350,000		364,370
6.75% due 04/15/2011		550,000		584,921
7.30% due 05/13/2019		350,000		389,771
Morgan Stanley, MTN
5.95% due 12/28/2017		560,000		572,614
PNC Funding Corp.
2.30% due 06/22/2012		345,000		350,455
5.625% due 02/01/2017		200,000		197,762
6.70% due 06/10/2019		190,000		208,121
SLM Corp.
4.50% due 07/26/2010		290,000		277,450
Toyota Motor Credit Corp.
5.45% due 05/18/2011		240,000		251,291
Wells Fargo & Company
3.00% due 12/09/2011		350,000		362,650
5.00% due 11/15/2014		290,000		297,930
5.625% due 12/11/2017		515,000		539,603
6.375% due 08/01/2011		590,000		627,322
Wells Fargo Bank NA
5.95% due 08/26/2036		485,000		483,072
6.45% due 02/01/2011		500,000		523,105
				24,269,553
Food & Beverages - 0.99%
Anheuser-Busch InBev Worldwide, Inc.
6.875% due 11/15/2019 (f)		300,000		335,574
7.75% due 01/15/2019 (f)		290,000		339,559
Bottling Group LLC
5.125% due 01/15/2019		290,000		307,125
Coca-Cola Enterprises, Inc.
8.50% due 02/01/2022		255,000		337,899
ConAgra Foods, Inc.
5.819% due 06/15/2017		25,000		26,746
9.75% due 03/01/2021		140,000		181,102
Diageo Capital PLC
7.375% due 01/15/2014		240,000		277,250
General Mills, Inc.
5.65% due 02/15/2019		215,000		232,309
Kellogg Company, Series B
6.60% due 04/01/2011		345,000		370,550
Kraft Foods, Inc.
6.75% due 02/19/2014		470,000		533,406
Kroger Company
6.40% due 08/15/2017		210,000		232,036
PepsiCo, Inc.
7.90% due 11/01/2018		195,000		245,929
Ralcorp Holdings, Inc.
6.625% due 08/15/2039 (f)		210,000		217,402
SABMiller PLC
6.50% due 07/15/2018 (f)		200,000		217,526
Tate & Lyle International Finance PLC
5.00% due 11/15/2014 (f)		260,000		244,198
Tesco PLC
6.15% due 11/15/2037 (f)		82,000		87,330
Unilever Capital Corp.
7.125% due 11/01/2010		200,000		214,272
				4,400,213
Gas & Pipeline Utilities - 0.41%
DCP Midstream LLC
9.70% due 12/01/2013 (f)		270,000		309,728
9.75% due 03/15/2019 (f)		240,000		285,324
Kinder Morgan Energy Partners LP
5.625% due 02/15/2015		110,000		116,371
5.85% due 09/15/2012		225,000		240,434
7.30% due 08/15/2033		30,000		31,649
9.00% due 02/01/2019		175,000		211,422
ONEOK Partners LP
6.65% due 10/01/2036		245,000		251,727
TEPPCO Partners LP
6.65% due 04/15/2018		110,000		118,580
Texas Eastern Transmission LP
6.00% due 09/15/2017 (f)		70,000		75,302
TransCanada PipeLines, Ltd.
5.85% due 03/15/2036		200,000		206,468
				1,847,005
Healthcare Products - 0.19%
Baxter International, Inc.
5.90% due 09/01/2016		145,000		161,934
Covidien International Finance SA
6.00% due 10/15/2017		287,000		315,965
Johnson & Johnson
5.85% due 07/15/2038		245,000		272,592
St. Jude Medical, Inc.
4.875% due 07/15/2019		100,000		102,159
				852,650
Healthcare Services - 0.15%
UnitedHealth Group, Inc.
4.875% due 03/15/2015		515,000		524,826
WellPoint, Inc.
6.375% due 06/15/2037		120,000		123,074
				647,900
Holdings Companies/Conglomerates - 0.12%
General Electric Company
5.00% due 02/01/2013		525,000		555,204
Hotels & Restaurants - 0.06%
McDonald’s Corp., MTN
5.00% due 02/01/2019		145,000		153,358
Yum! Brands, Inc.
6.25% due 03/15/2018		95,000		102,822
				256,180
Household Products - 0.06%
Clorox Company
5.95% due 10/15/2017		260,000		281,706

The accompanying notes are an integral part of the financial statements.

344

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Industrial Machinery - 0.12%
Cameron International Corp.
7.00% due 07/15/2038	$	100,000	$	103,407
Caterpillar, Inc.
7.90% due 12/15/2018		265,000		321,931
Roper Industries, Inc.
6.25% due 09/01/2019		100,000		101,483
				526,821
Insurance - 0.86%
Aegon Funding Corp.
5.75% due 12/15/2020		145,000		132,067
Aetna, Inc.
6.00% due 06/15/2016		290,000		301,155
Allied World Assurance Holdings, Ltd.
7.50% due 08/01/2016		320,000		308,678
Allstate Corp.
5.95% due 04/01/2036		270,000		273,541
AON Corp.
8.205% due 01/01/2027		210,000		193,200
AXA SA
8.60% due 12/15/2030		140,000		143,652
Berkshire Hathaway Finance Corp.
5.40% due 05/15/2018 (f)		290,000		309,738
Chubb Corp.
5.75% due 05/15/2018		100,000		108,510
Hartford Financial Services Group, Inc.
5.95% due 10/15/2036		135,000		98,944
ING Security Life Institutional Funding
4.25% due 01/15/2010 (f)		380,000		374,614
Lincoln National Corp.
7.00% until 05/17/2016, then variable
due 05/17/2066		30,000		19,800
5.65% due 08/27/2012		145,000		147,739
Marsh & McLennan Companies, Inc.
5.75% due 09/15/2015		290,000		298,116
MetLife, Inc., Series A
6.817% due 08/15/2018		395,000		436,389
Prudential Financial, Inc.
4.75% due 04/01/2014		290,000		284,213
The St. Paul Companies, Inc.
5.50% due 12/01/2015		190,000		203,967
The Travelers Companies, Inc.
5.90% due 06/02/2019		190,000		209,251
				3,843,574
International Oil - 0.46%
Chevron Corp.
4.95% due 03/03/2019		215,000		228,391
ConocoPhillips Company
5.75% due 02/01/2019		270,000		290,163
EnCana Corp.
6.50% due 08/15/2034		345,000		372,131
Pemex Project Funding Master Trust
7.375% due 12/15/2014		180,000		197,916
Petro-Canada
5.95% due 05/15/2035		190,000		179,631
6.05% due 05/15/2018		325,000		336,720
Shell International Finance BV
6.375% due 12/15/2038		265,000		313,154
Talisman Energy, Inc.
6.25% due 02/01/2038		155,000		152,281
				2,070,387
Investment Companies - 0.11%
FIH Erhvervsbank A/S
2.45% due 08/17/2012 (f)		210,000		211,638
Xstrata Finance Canada, Ltd.
5.80% due 11/15/2016 (f)		290,000		278,747
				490,385
Leisure Time - 0.09%
Vivendi
5.75% due 04/04/2013 (f)		102,000		104,512
Walt Disney Company, MTN
5.625% due 09/15/2016		250,000		275,398
				379,910
Liquor - 0.07%
Brown-Forman Corp.
5.00% due 02/01/2014		290,000		307,143
Manufacturing - 0.33%
Harsco Corp.
5.75% due 05/15/2018		270,000		267,248
Honeywell International, Inc.
3.875% due 02/15/2014		220,000		228,519
Ingersoll-Rand Global Holding Company, Ltd.
6.875% due 08/15/2018		270,000		286,165
Snap-On, Inc.
6.125% due 09/01/2021		210,000		217,661
Stanley Works
6.15% due 10/01/2013		170,000		185,356
Tyco Electronics Group SA
6.55% due 10/01/2017		305,000		303,077
				1,488,026
Medical-Drugs - 0.21%
Abbott Laboratories
4.35% due 03/15/2014		350,000		365,352
Bristol-Myers Squibb Company
6.80% due 11/15/2026		140,000		170,111
GlaxoSmithKline Capital, Inc.
4.375% due 04/15/2014		370,000		391,116
				926,579
Medical-Hospitals - 0.07%
Howard Hughes Medical Institute
3.45% due 09/01/2014		210,000		212,977
Quest Diagnostics, Inc.
5.45% due 11/01/2015		90,000		93,152
				306,129
Metal & Metal Products - 0.07%
Amgen, Inc.
5.70% due 02/01/2019		145,000		159,509
Commercial Metals Company
7.35% due 08/15/2018		140,000		142,281
				301,790

The accompanying notes are an integral part of the financial statements.

345

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Mining - 0.03%
Rio Tinto Finance USA, Ltd.
6.50% due 07/15/2018	$	110,000	$	118,420
Oil & Gas Drilling - 0.16%
GlobalSantaFe Corp.
5.00% due 02/15/2013		275,000		288,906
Nabors Industries, Inc.
9.25% due 01/15/2019		290,000		340,351
Nexen, Inc.
6.20% due 07/30/2019		100,000		101,166
				730,423
Paper - 0.02%
International Paper Company
8.70% due 06/15/2038		100,000		102,883
Petroleum Services - 0.19%
Noble Holding International, Ltd.
7.375% due 03/15/2014		240,000		256,941
Tosco Corp.
8.125% due 02/15/2030		285,000		356,968
Weatherford International, Ltd.
5.50% due 02/15/2016		215,000		216,601
				830,510
Pharmaceuticals - 0.41%
AstraZeneca PLC
5.90% due 09/15/2017		300,000		333,364
Eli Lilly & Company
7.125% due 06/01/2025		220,000		272,547
Novartis Securities Investment, Ltd.
5.125% due 02/10/2019		210,000		222,630
Pharmacia Corp.
6.50% due 12/01/2018		290,000		335,822
Schering Plough Corp.
5.55% due 12/01/2013		240,000		261,807
Wyeth
5.50% due 03/15/2013		385,000		421,294
				1,847,464
Pipelines - 0.12%
Boardwalk Pipelines LP
5.75% due 09/15/2019		160,000		158,545
Enterprise Products Operating LLC
9.75% due 01/31/2014		175,000		210,656
Magellan Midstream Partners LP
6.55% due 07/15/2019		150,000		165,576
				534,777
Railroads & Equipment - 0.31%
Burlington Northern Santa Fe Corp.
7.00% due 02/01/2014		350,000		399,041
Canadian National Railway Company
6.375% due 10/15/2011		135,000		148,123
CSX Corp.
6.25% due 04/01/2015		205,000		227,131
7.375% due 02/01/2019		290,000		336,455
Union Pacific Corp.
6.625% due 02/01/2029		260,000		292,557
				1,403,307
Real Estate - 0.30%
Duke Realty LP
5.95% due 02/15/2017		72,000		64,790
Hospitality Properties Trust
7.875% due 08/15/2014		180,000		177,375
ProLogis
5.625% due 11/15/2016		60,000		52,233
7.625% due 08/15/2014		410,000		405,705
Realty Income Corp.
5.95% due 09/15/2016		135,000		128,794
Simon Property Group LP
5.875% due 03/01/2017		86,000		87,014
WEA Finance LLC
7.50% due 06/02/2014 (f)		390,000		418,957
				1,334,868
Retail - 0.12%
CVS Caremark Corp.
6.125% due 08/15/2016		305,000		336,667
CVS Pass-Through Trust
8.353% due 07/10/2031 (f)		169,772		177,412
				514,079
Retail Trade - 0.50%
Home Depot, Inc.
4.625% due 08/15/2010		265,000		273,095
Safeway, Inc.
6.35% due 08/15/2017		155,000		170,409
Target Corp.
6.50% due 10/15/2037		220,000		239,273
7.50% due 08/15/2010		135,000		143,293
Walgreen Company
5.25% due 01/15/2019		290,000		311,042
Wal-Mart Stores, Inc.
4.125% due 02/01/2019		265,000		264,491
6.20% due 04/15/2038		386,000		430,710
7.55% due 02/15/2030		300,000		388,885
				2,221,198
Sanitary Services - 0.05%
Allied Waste North America, Inc.
6.875% due 06/01/2017		200,000		208,500
Software - 0.14%
Microsoft Corp.
2.95% due 06/01/2014		200,000		201,229
Oracle Corp.
5.75% due 04/15/2018		380,000		417,011
				618,240
Steel - 0.03%
ArcelorMittal
5.375% due 06/01/2013		140,000		141,096
Supranational - 0.06%
Development Bank of Japan, Series DTC
5.125% due 02/01/2017		100,000		107,808
Svensk Exportkredit AB, GMTN
4.875% due 09/29/2011		165,000		175,030
				282,838

The accompanying notes are an integral part of the financial statements.

346

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Telecommunications Equipment &
Services - 0.59%
Deutsche Telekom International Finance BV
8.75 due 06/15/2030	$	365,000	$	485,711
France Telecom SA
8.50% due 03/01/2031		290,000		392,831
SBC Communications, Inc.
5.625% due 06/15/2016		200,000		216,033
Verizon Communications, Inc.
5.25% due 04/15/2013		275,000		296,440
6.10% due 04/15/2018		435,000		472,866
7.375% due 09/01/2012		250,000		283,589
Verizon Global Funding Corp.
7.25% due 12/01/2010		435,000		463,302
				2,610,772
Telephone - 0.76%
Ameritech Capital Funding
6.875% due 10/15/2027		138,000		141,561
AT&T, Inc.
6.30% due 01/15/2038		400,000		419,939
6.70% due 11/15/2013		270,000		305,825
BellSouth Corp.
6.875% due 10/15/2031		405,000		443,629
British Telecommunications PLC
5.95% due 01/15/2018		160,000		162,928
9.625% due 12/15/2030		160,000		201,196
Telecom Italia Capital SA
5.25% due 11/15/2013		460,000		481,276
7.721% due 06/04/2038		200,000		233,499
Telefonica Europe BV
8.25% due 09/15/2030		325,000		425,129
Verizon Communications, Inc.
6.90% due 04/15/2038		510,000		583,601
				3,398,583
Tobacco - 0.25%
Altria Group, Inc.
8.50% due 11/10/2013		255,000		294,865
9.25% due 08/06/2019		425,000		512,941
Philip Morris International, Inc.
6.875% due 03/17/2014		270,000		308,297
				1,116,103
Trucking & Freight - 0.04%
FedEx Corp.
8.00% due 01/15/2019		145,000		173,598
Utility Service - 0.07%
Pacificorp
6.00% due 01/15/2039		290,000		320,778
TOTAL CORPORATE BONDS (Cost $89,374,079)			$	96,589,334
MUNICIPAL BONDS - 0.31%
California - 0.10%
State of California
7.50% due 04/01/2034		200,000		212,124
University of California
5.77% due 05/15/2043		220,000		228,375
				440,499
District of Columbia - 0.02%
Metropolitan Washington Airports Authority
7.462% due 10/01/2046		100,000		108,047
Illinois - 0.06%
Illinois State, Taxable Pension
5.10% due 06/01/2033		285,000		257,777
New York - 0.05%
New York State Dormitory Authority
5.628% due 03/15/2039		210,000		216,210
North Carolina - 0.04%
North Carolina Turnkpike Authority
6.70% due 01/01/2039		170,000		184,979
Texas - 0.04%
State of Texas
5.517% due 04/01/2039		160,000		164,179
TOTAL MUNICIPAL BONDS (Cost $1,325,180)			$	1,371,691
COLLATERALIZED MORTGAGE
OBLIGATIONS - 3.95%
Banc of America Commercial Mortgage Inc, Series 2006-4, Class A4
5.634% due 07/10/2046		410,000		367,962
Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3
4.128% due 07/10/2042		261,804		262,804
Banc of America Commercial Mortgage, Inc., Series 2006-3, Class A4
5.889% due 07/10/2044		700,000		577,457
Bear Stearns Commercial Mortgage Securities, Series 2006-PW12, Class A4
5.9029% due 09/11/2038 (b)		260,000		243,984
CS First Boston Mortgage Securities Corp, Series 2005-C3, Class A3
4.645% due 07/15/2037		340,000		342,053
GE Capital Commercial Mortgage Corp, Series 2005-C1, Class A3
4.578% due 06/10/2048		540,000		528,520
GE Capital Commercial Mortgage Corp., Series 2004-C3, Class A2
4.433% due 07/10/2039		580,636		585,742
GE Capital Commercial Mortgage Corp., Series 2005-C1, Class A2
4.353% due 06/10/2048		972,808		971,938
GMAC Commercial Mortgage Securities, Inc.,Series 2003-C3, Class A4
5.023% due 04/10/2040		1,020,000		1,009,254
GS Mortgage Securities Corp II, Series 2007-GG10, Class A4
5.9994% due 08/10/2045 (b)		1,105,000		863,840
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2005-CB13, Class A3A1
5.4573% due 01/12/2043 (b)		440,000		421,452
JP Morgan Chase Commercial Mortgage Securities Corp, Series 2006-LDP8, Class AM
5.44% due 05/15/2045		210,000		149,255
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2004-CBX, Class A6
4.899% due 01/12/2037		540,000		501,254

The accompanying notes are an integral part of the financial statements.

347

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Bond Market Fund (continued)
	Shares or Principal Amount		Value
COLLATERALIZED MORTGAGE
OBLIGATIONS (continued)
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2006-CB14, Class A3A
5.491% due 12/12/2044	$	920,000	$	866,729
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A4
5.3443% due 12/15/2044 (b)		275,000		260,968
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class A4
4.738% due 07/15/2042		940,000		892,507
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A4
4.918% due 10/15/2042 (b)		420,000		401,274
LB-UBS Commercial Mortgage Trust, Series 2000-C3, Class A2
7.95% due 05/15/2025		353,975		358,079
LB-UBS Commercial Mortgage Trust, Series 2005-C1, Class A2
4.31% due 02/15/2030		650,000		649,974
LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A3
5.347% due 11/15/2038		968,000		853,026
Merrill Lynch Mortgage Trust, Series 2008-C1, Class A4
5.69% due 02/12/2051		145,000		111,834
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-8, Class A2
6.1185% due 08/12/2049 (b)		1,080,000		1,050,116
Morgan Stanley Capital I, Series 2007-T27, Class A4
5.8029% due 06/11/2042 (b)		1,630,000		1,500,690
Morgan Stanley Capital I, Series 2004-HQ3, Class A4
4.80% due 01/13/2041		870,000		835,524
Morgan Stanley Capital I, Series 2005-HQ6, Class A2A
4.882% due 08/13/2042		980,000		976,941
Morgan Stanley Capital I, Series 2007-T25, Class A3
5.514% due 11/12/2049		1,295,000		1,170,148
Wachovia Bank Commercial Mortgage Trust, Series 2004-C12, Class A2
5.001% due 07/15/2041		457,100		464,256
Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class A4
5.083% due 03/15/2042 (b)		410,000		400,709
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $16,731,720)			$	17,618,290
ASSET BACKED SECURITIES - 0.11%
American Express Credit Account Master Trust, Series 2006-2, Class A
5.35% due 01/15/2014		440,000		468,141
CNH Equipment Trust, Series 2008-B, Class A2B
1.2783% due 04/15/2011 (b)		28,459		28,471
TOTAL ASSET BACKED SECURITIES (Cost $476,228)			$	496,612
SUPRANATIONAL OBLIGATIONS - 1.05%
Supranational - 1.05%
African Development Bank
6.875% due 10/15/2015		105,000		118,192
Asian Development Bank
5.593% due 07/16/2018	$	405,000	$	443,850
European Investment Bank
2.375% due 03/14/2014		570,000		561,905
3.25% due 02/15/2011		435,000		449,181
4.625% due 05/15/2014		429,000		464,419
4.625% due 10/20/2015		395,000		426,780
4.875% due 01/17/2017		580,000		629,403
Inter-American Development Bank
7.00% due 06/15/2025		175,000		216,482
7.375% due 01/15/2010		280,000		287,104
International Bank for Reconstruction & Development
3.625% due 05/21/2013		200,000		209,767
8.625% due 10/15/2016		285,000		360,789
International Finance Corp.
3.50% due 05/15/2013		155,000		158,378
Nordic Investment Bank
2.375% due 12/15/2011		355,000		361,093
				4,687,343
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $4,689,198)			$	4,687,343
REPURCHASE AGREEMENTS - 2.85%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $12,732,025 on 09/01/2009, collateralized by $12,325,000 Federal National Mortgage Association, 3.625% due 02/12/2013 (valued at $12,987,469, including interest)	$	12,732,000	$	12,732,000
TOTAL REPURCHASE AGREEMENTS (Cost $12,732,000)			$	12,732,000
SHORT TERM INVESTMENTS - 0.49%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		215,883	$	2,161,266
TOTAL SHORT TERM INVESTMENTS (Cost $2,161,199)			$	2,161,266
Total Investments (Total Bond Market Fund) (Cost $440,770,710) - 102.42%			$	457,322,647
Other assets and liabilities, net - (2.42)%				(10,790,503	)
TOTAL NET ASSETS - 100.00%			$	446,532,144

Total Return Fund
	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 20.86%
Treasury Inflation Protected
Securities (d) - 0.18%
2.50% due 01/15/2029	$	1,104,785	$	1,156,918

The accompanying notes are an integral part of the financial statements.

348

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)
		Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS
(continued)
Treasury Inflation Protected
Securities (d) (continued)
1.75% due 01/15/2028		$	2,161,530	$	2,014,952
					3,171,870
U.S. Treasury Bonds - 2.18%
3.50% due 02/15/2039			3,050,000		2,694,486
4.25% due 05/15/2039			17,700,000		17,896,364
4.50% due 08/15/2039			13,900,000		14,649,294
5.375% due 02/15/2031			3,100,000		3,626,516
					38,866,660
U.S. Treasury Notes - 18.50%
0.875% due 04/30/2011 ***			1,234,000		1,235,879
1.00% due 07/31/2011 to 08/31/2011			328,000,000		328,158,808
					329,394,687
TOTAL U.S. TREASURY OBLIGATIONS (Cost $368,827,078)				$	371,433,217
U.S. GOVERNMENT AGENCY OBLIGATIONS - 57.14%
Federal Home Loan Bank - 0.12%
3.375% due 06/24/2011			2,000,000		2,084,091
Federal Home Loan Mortgage Corp. - 13.70%
1.125% due 06/01/2011			12,500,000		12,545,488
1.625% due 04/26/2011			500,000		505,836
4.851% due 11/01/2035 (b)			579,703		601,586
5.25% due 07/18/2011			1,200,000		1,292,307
5.50% due 02/01/2038 to 01/01/2039			34,102,356		35,598,316
5.50% TBA **			77,500,000		80,739,260
6.00% due 08/01/2026 to 10/01/2037			5,430,823		5,757,861
6.00% TBA **			101,500,000		106,876,333
					243,916,987
Federal National Mortgage
Association - 43.00%
3.147% due 11/01/2035 (b)			529,295		536,227
3.512% due 05/01/2035 (b)			956,617		983,774
3.623% due 03/01/2035 (b)			161,937		165,284
3.686% due 07/01/2034 (b)			301,769		313,413
4.472% due 11/01/2034 (b)			528,961		541,912
4.475% due 01/01/2035 (b)			351,181		360,599
4.50% TBA **			4,600,000		4,729,375
4.828% due 06/01/2035 (b)			1,495,957		1,551,535
4.838% due 09/01/2035 (b)			685,244		712,039
5.00% due 11/01/2021 to 07/01/2037			22,268,250		23,037,082
5.00% TBA **			19,100,000		19,601,375
5.50% due 02/01/2011 to 01/01/2039			331,746,044		346,705,917
5.50% due 10/01/2038 ***			56,103,267		58,691,474
6.00% due 10/01/2026 to 06/01/2039			105,937,382		111,917,292
6.00% TBA **			175,500,000		184,455,910
6.50% due 10/01/2036 to 05/01/2037			2,098,729		2,251,633
6.50% TBA **			8,600,000		9,196,625
					765,751,466
Government National Mortgage
Association - 0.20%
6.00% due 01/15/2038 to 10/15/2038			2,935,892		3,106,598
6.00% TBA **			500,000		527,031
					3,633,629
Small Business Administration - 0.12%
5.29% due 12/01/2027			1,954,563		2,063,211
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $995,249,782)				$	1,017,449,384
FOREIGN GOVERNMENT OBLIGATIONS - 0.31%
Brazil - 0.31%
Federative Republic of Brazil
10.25% due 01/10/2028	BRL		6,400,000		3,361,808
12.50% due 01/05/2022			3,600,000		2,120,232
					5,482,040
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $5,584,867)				$	5,482,040
CORPORATE BONDS - 29.70%
Banking - 8.95%
ANZ National International, Ltd.
6.20% due 07/19/2013 (f)		$	3,100,000		3,332,190
BAC Capital Trust VII
5.25% due 08/10/2035	GBP		1,000,000		952,368
Bank of America Corp.
0.77% due 08/15/2016 (b)		$	1,100,000		897,413
2.10% due 04/30/2012			10,800,000		10,915,916
6.50% due 08/01/2016			7,900,000		8,140,871
Bank of America NA, BKNT
6.00% due 10/15/2036			900,000		833,233
Barclays Bank PLC
5.45% due 09/12/2012			23,000,000		24,618,165
6.05% due 12/04/2017 (f)			2,900,000		2,862,155
BNP Paribas
5.186% until 06/29/2015, then variable due 06/29/2049 (f)			7,600,000		5,346,668
Citibank NA
1.625% due 03/30/2011			900,000		909,580
1.875% due 06/04/2012			500,000		501,658
Citibank NA, Series FXD
1.875% due 05/07/2012			1,000,000		1,002,824
Credit Agricole SA
0.4219% due 05/28/2010 (b)(f)			2,700,000		2,686,905
Danske Bank A/S
2.50% due 05/10/2012 (f)			2,500,000		2,530,917
Deutsche Bank AG
6.00% due 09/01/2017			4,600,000		4,896,925
Dexia Credit Local
1.2619% due 09/23/2011 (b)(f)			5,200,000		5,184,930
DnB NOR Bank ASA
0.58% due 10/13/2009 (b)(f)			2,400,000		2,394,230
Fortis Bank Nederland Holding NV, EMTN
3.00% due 04/17/2012	EUR		500,000		728,690
HSBC Finance Corp.
0.5638% due 10/21/2009 (b)		$	1,700,000		1,698,880
HSBC Holdings PLC
6.50% due 05/02/2036			900,000		928,129
6.50% due 09/15/2037			1,200,000		1,241,032
ICICI Bank, Ltd.
1.05% due 01/12/2010 (b)(f)			3,800,000		3,724,000
National Australia Bank, Ltd.
0.6875% due 09/11/2009 (b)(f)			2,500,000		2,499,905

The accompanying notes are an integral part of the financial statements.

349

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Banking (continued)
National Australia Bank, Ltd. (continued)
5.35% due 06/12/2013 (f)		$	2,600,000	$	2,755,345
Royal Bank of Scotland Group PLC
6.99% until 10/05/2017, then variable due 10/29/2049 (f)			6,800,000		3,332,000
7.648% until 09/30/2031, then variable due 08/31/2049			5,000,000		2,400,000
Royal Bank of Scotland PLC
0.8544% due 04/08/2011 (b)(f)			4,000,000		3,994,452
2.625% due 05/11/2012 (f)			2,400,000		2,434,248
3.00% due 12/09/2011 (f)			5,900,000		6,064,020
Santander Perpetual SA Unipersonal
6.671% until 10/24/2017, then variable due 10/29/2049 (f)			5,600,000		4,672,203
Santander US Debt SA Unipersonal
0.6969% due 11/20/2009 (b)(f)			4,700,000		4,700,179
Societe Financement de l'Economie Francaise
0.7131% due 07/16/2012 (b)(f)			2,000,000		2,000,394
3.375% due 05/05/2014 (f)			5,100,000		5,196,048
Societe Financement de l'Economie Francaise, EMTN
2.125% due 05/20/2012	EUR		800,000		1,154,369
State Street Capital Trust III
8.25% until 03/15/2011, then variable due 03/15/2042		$	2,900,000		2,744,618
Sumitomo Mitsui Banking Corp.
5.625% until 10/15/2015, then variable due 07/29/2049 (f)			5,200,000		4,950,551
Swedbank AB, EMTN
3.625% due 12/02/2011	EUR		100,000		148,030
UBS AG/Stamford Branch, MTN
1.3919% due 05/05/2010 (b)		$	300,000		300,686
5.75% due 04/25/2018			1,900,000		1,866,596
UBS AG/Stamford Branch, Series DPNT
5.875% due 12/20/2017			2,100,000		2,080,768
USB Capital IX
6.189% until 04/15/2011, then variable due 10/29/2049			300,000		216,000
Wachovia Bank NA, BKNT
0.4531% due 05/25/2010 (b)			11,000,000		10,981,817
Wachovia Corp.
0.6394% due 10/15/2011 (b)			1,100,000		1,072,143
5.75% due 02/01/2018			6,200,000		6,510,986
Westpac Banking Corp.
0.9931% due 07/16/2014 (b)(f)			1,000,000		992,111
					159,395,148
Biotechnology - 0.58%
Amgen, Inc.
6.15% due 06/01/2018			9,100,000		10,244,889
Building Materials & Construction - 0.20%
C8 Capital SPV, Ltd.
6.64% until 12/31/2014, then variable due 12/31/2049 (f)			5,500,000		3,618,725
Cable & Television - 0.11%
Comcast Corp.
5.875% due 02/15/2018			700,000		744,201
6.45% due 03/15/2037			700,000		746,700
Time Warner, Inc.
0.6844% due 11/13/2009 (b)			400,000		400,040
					1,890,941
Cellular Communications - 0.86%
Verizon Wireless Capital LLC
3.025% due 05/20/2011 (b)(f)			14,700,000		15,234,566
Chemicals - 0.49%
Rohm & Haas Company
6.00% due 09/15/2017			1,500,000		1,476,553
The Dow Chemical Company
4.85% due 08/15/2012			7,100,000		7,272,175
					8,748,728
Computers & Business Equipment - 0.28%
Dell, Inc.
4.70% due 04/15/2013			4,800,000		5,037,062
Crude Petroleum & Natural Gas - 0.41%
Petroleos Mexicanos
8.00% due 05/03/2019 (f)			6,500,000		7,312,500
Educational Services - 0.85%
President and Fellows of Harvard College
6.50% due 01/15/2039 (f)			12,900,000		15,062,169
Financial Services - 13.95%
Allstate Life Global Funding Trusts, MTN
5.375% due 04/30/2013			2,500,000		2,641,835
American Express Bank FSB
5.50% due 04/16/2013			3,500,000		3,631,799
American Express Bank FSB, BKNT
0.3325% due 10/20/2009 (b)			2,600,000		2,598,011
6.00% due 09/13/2017			200,000		197,349
American Express Centurion Bank, BKNT
0.3275% due 09/22/2009 (b)			400,000		399,792
0.3545% due 07/13/2010 (b)			300,000		294,461
6.00% due 09/13/2017			200,000		197,349
American Express Company
7.00% due 03/19/2018			2,700,000		2,832,859
American Express Credit Corp., MTN
0.3356% due 11/09/2009 (b)			2,000,000		1,998,394
5.875% due 05/02/2013			2,300,000		2,402,184
American Express Travel Related Services Company, Inc.
5.25% due 11/21/2011			1,366,000		1,394,185
American General Finance Corp.
6.90% due 12/15/2017			3,300,000		2,037,641
Bear Stearns Companies, Inc.
0.65% due 08/15/2011 (b)			200,000		198,531
6.95% due 08/10/2012			4,100,000		4,580,762
7.625% due 12/07/2009			2,800,000		2,850,162
Bear Stearns Companies, Inc., MTN
0.5494% due 05/18/2010 (b)			4,600,000		4,599,830
Bear Stearns Companies, Inc., Series E, MTN
1.445% due 09/26/2013 (b)	EUR		3,600,000		4,903,204
C10 Capital SPV, Ltd.
6.722% until 12/31/2016, then variable due 12/01/2049 (f)		$	1,700,000		1,118,719
Caelus Re, Ltd.
6.9175% due 06/07/2011 (b)(f)			1,200,000		1,111,920

The accompanying notes are an integral part of the financial statements.

350

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)
		Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Calabash Re, Ltd.
9.0244% due 01/08/2010 (b)(f)		$	2,200,000	$	2,135,871
CIT Group, Inc.
0.7337% due 04/27/2011 (b)			400,000		239,443
5.00% due 05/13/2014	EUR		2,300,000		1,714,585
Citigroup Capital XXI
8.3% until 12/21/2037, then variable due 12/21/2057		$	20,525,000		17,292,313
Citigroup Funding, Inc.
2.25% due 12/10/2012			2,100,000		2,120,920
Citigroup, Inc.
4.75% until 02/10/2014, then variable due 02/10/2019	EUR		1,500,000		1,642,728
0.6313% due 12/28/2009 (b)		$	1,400,000		1,393,720
2.125% due 04/30/2012			1,500,000		1,517,070
5.30% due 10/17/2012			800,000		808,159
5.50% due 08/27/2012			2,100,000		2,135,606
5.50% due 04/11/2013			8,800,000		8,759,071
5.625% due 08/27/2012			1,700,000		1,685,441
5.85% due 07/02/2013			600,000		603,614
6.00% due 08/15/2017			900,000		845,932
6.125% due 08/25/2036			3,500,000		2,740,433
8.50% due 05/22/2019			2,200,000		2,404,772
Countrywide Financial Corp.
5.80% due 06/07/2012			3,200,000		3,320,307
Countrywide Home Loan
4.00% due 03/22/2011			600,000		605,818
Ford Motor Credit Company LLC
5.70% due 01/15/2010			400,000		398,546
7.25% due 10/25/2011			100,000		94,035
7.375% due 10/28/2009			2,100,000		2,100,174
7.375% due 02/01/2011			1,400,000		1,353,395
7.875% due 06/15/2010			300,000		299,374
8.00% due 12/15/2016			1,000,000		876,143
8.625% due 11/01/2010			100,000		99,896
General Electric Capital Corp.
6.375% until 11/15/2017, then variable due 11/15/2067			4,100,000		3,310,750
5.5% until 09/15/2017, then variable due 09/15/2067 (f)	EUR		9,900,000		9,367,138
1.80% due 03/11/2011		$	400,000		405,448
3.00% due 12/09/2011			16,100,000		16,659,958
General Electric Capital Corp., MTN
0.51% due 08/15/2011 (b)			2,300,000		2,237,562
General Electric Capital Corp., Series GMTN
2.00% due 09/28/2012			4,200,000		4,230,467
GMAC LLC
6.00% due 12/15/2011			400,000		352,272
Goldman Sachs Group, Inc.
5.625% due 01/15/2017			2,000,000		1,988,674
6.15% due 04/01/2018			7,500,000		7,916,858
6.25% due 09/01/2017			5,400,000		5,723,519
Goldman Sachs Group, Inc., MTN
0.52% due 11/16/2009 (b)			1,100,000		1,100,829
Goldman Sachs Group, Inc., Series E, MTN
6.375% due 05/02/2018	EUR		700,000		1,091,445
International Lease Finance Corp., MTN
0.6269% due 05/24/2010 (b)		$	18,700,000		17,378,695
JPMorgan Chase & Company
6.00% due 01/15/2018			2,300,000		2,471,794
JPMorgan Chase & Company, MTN
0.5081% due 05/07/2010 (b)			3,900,000		3,901,868
JPMorgan Chase Bank NA, BKNT
6.00% due 10/01/2017			3,900,000		4,111,357
JPMorgan Chase Capital XX, Series T
6.55% due 09/15/2066			400,000		348,621
KeyBank NA, BKNT
2.9063% due 06/02/2010 (b)			4,400,000		4,375,747
Korea Development Bank
0.7275% due 04/03/2010 (b)			9,900,000		9,767,182
LeasePlan Corp. NV, EMTN
3.125% due 02/10/2012	EUR		1,900,000		2,787,846
Lehman Brothers Holdings, Inc., MTN
0.00% due 08/21/2049 ^ (b)		$	2,300,000		396,750
4.7013% due 12/23/2010 ^ (b)			10,000,000		1,725,000
5.46% due 11/16/2009 ^ (b)			4,100,000		707,250
5.50% due 05/25/2010 ^ (b)			800,000		138,000
6.875% due 05/02/2018 ^			1,100,000		202,125
Longpoint Re, Ltd.
5.8744% due 05/08/2010 (b)(f)			1,200,000		1,186,080
Merrill Lynch & Company, Inc.
6.40% due 08/28/2017			3,100,000		3,055,041
Merrill Lynch & Company, Inc., MTN
6.05% due 08/15/2012			900,000		937,820
6.875% due 04/25/2018			7,600,000		7,760,216
Merrill Lynch Commercial Trust 2008-LAQ
1.00% due 07/09/2021			5,000,000		3,750,000
Morgan Stanley
3.25% due 12/01/2011			2,900,000		3,019,062
6.25% due 08/28/2017			800,000		824,854
Morgan Stanley, MTN
0.5994% due 01/15/2010 (b)			2,400,000		2,396,261
2.5497% due 05/14/2010 (b)			5,000,000		5,043,805
Mystic Re, Ltd.
10.3606% due 06/07/2011 (b)(f)			700,000		670,591
Northern Rock PLC
5.625% due 06/22/2017 (f)			15,300,000		13,339,279
Salomon Brothers AG for OAO Gazprom
10.50% due 10/21/2009			900,000		910,170
SLM Corp., MTN
0.7337% due 10/25/2011 (b)			200,000		158,395
1.123% due 11/15/2011 (b)	EUR		400,000		423,307
SLM Corp., Series MTNA
5.375% due 05/15/2014		$	500,000		353,750
SMFG Preferred Capital
6.078% until 01/25/2017, then variable due 01/29/2049 (f)			1,600,000		1,391,072
TNK-BP Finance SA
6.125% due 03/20/2012 (f)			500,000		489,375
TransCapitalInvest, Ltd., for OJSC AK Transneft
8.70% due 08/07/2018 (f)			1,000,000		1,050,000
Wells Fargo & Company
0.7294% due 09/15/2009 (b)			1,500,000		1,500,314
ZFS Finance USA Trust IV
(missing rate) due 05/09/2032 (f)			321,000		257,269
					248,390,169

The accompanying notes are an integral part of the financial statements.

351

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Food & Beverages - 0.34%
General Mills, Inc.
0.635% due 01/22/2010 (b)	$	2,100,000	$	2,099,878
Kraft Foods, Inc.
6.125% due 02/01/2018		2,500,000		2,735,952
6.875% due 02/01/2038		1,100,000		1,261,938
				6,097,768
Gas & Pipeline Utilities - 0.16%
NGPL PipeCo LLC
6.514% due 12/15/2012 (f)		2,600,000		2,813,528
Insurance - 1.22%
American International Group, Inc., MTN
0.7088% due 03/20/2012 (b)		4,200,000		2,697,538
MetLife, Inc.
6.40% until 12/15/2036, then variable due 12/15/2066		900,000		704,250
Metropolitan Life Global Funding I, MTN
0.48% due 05/17/2010 (b)(f)		5,000,000		4,965,445
Monumental Global Funding, Ltd.
5.50% due 04/22/2013 (f)		1,900,000		1,922,293
Pricoa Global Funding I
0.5913% due 01/30/2012 (b)(f)		3,200,000		3,022,550
0.8012% due 09/27/2013 (b)(f)		2,700,000		2,101,143
Principal Life Income Funding Trusts, MTN
5.30% due 04/24/2013		2,200,000		2,243,476
5.55% due 04/27/2015		3,500,000		3,502,384
Residential Reinsurance 2007, Ltd., Series CL2
10.9175% due 06/07/2010 (b)(f)		600,000		589,260
				21,748,339
International Oil - 0.02%
Gaz Capital for Gazprom
6.212% due 11/22/2016 (f)		500,000		446,875
Pharmaceuticals - 0.13%
AstraZeneca PLC
5.90% due 09/15/2017		1,000,000		1,111,212
6.45% due 09/15/2037		1,000,000		1,176,066
				2,287,278
Retail - 0.80%
Home Depot, Inc.
3.75% due 09/15/2009		14,300,000		14,307,393
Telephone - 0.25%
AT&T, Inc.
0.5719% due 02/05/2010 (b)		1,400,000		1,401,474
Telecom Italia Capital SA
1.12% due 07/18/2011 (b)		3,200,000		3,142,455
				4,543,929
Tobacco - 0.10%
Philip Morris International, Inc.
5.65% due 05/16/2018		1,600,000		1,701,547
TOTAL CORPORATE BONDS (Cost $547,916,896)			$	528,881,554
MUNICIPAL BONDS - 2.57%
California - 1.17%
City of Los Angeles
5.00% due 06/01/2039		3,800,000		3,820,102
Los Angeles Unified School District, California, Series A-1
4.50% due 07/01/2023		5,000,000		5,034,200
San Diego Tobacco Settlement Revenue Funding Corp.
7.125% due 06/01/2032		1,495,000		990,527
State of California
5.65% due 04/01/2039		800,000		825,376
7.50% due 04/01/2034		2,600,000		2,757,612
7.55% due 04/01/2039		900,000		968,868
Tobacco Securitization Authority South California Tobacco Settlement, Series A1-SNR
5.125% due 06/01/2046		1,500,000		1,029,420
University of California
6.27% due 05/15/2031		5,300,000		5,466,473
				20,892,578
Illinois - 0.38%
Chicago Illinois Transit Authority, Series A
6.30% due 12/01/2021		100,000		108,057
6.899% due 12/01/2040		2,700,000		3,075,354
Chicago Illinois Transit Authority, Series B
6.30% due 12/01/2021		300,000		319,701
6.899% due 12/01/2040		2,600,000		2,961,452
Illinois Municipal Electric Agency
6.832% due 02/01/2035		200,000		221,042
				6,685,606
Iowa - 0.04%
Tobacco Settlement Authority of Iowa, Tobacco Settlement Revenue, Series A
6.50% due 06/01/2023		960,000		718,829
Louisiana - 0.15%
State of Louisiana
3.00% due 05/01/2043 (b)		2,600,000		2,604,446
Nevada - 0.01%
Truckee Meadows Nevada Water Authority, Water Revenue, Series A
5.00% due 07/01/2036		200,000		192,554
New Jersey - 0.51%
New Jersey State Turnpike Authority
7.414% due 01/01/2040		7,400,000		9,076,766
North Carolina - 0.02%
North Carolina Turnkpike Authority
6.70% due 01/01/2039		300,000		326,433
Pennsylvania - 0.05%
Pennsylvania Higher Educational Facilties Authority, Facilities Authority Revenue
4.75% due 07/15/2035		950,000		952,365
West Virginia - 0.13%
Tobacco Settlement Finance Authority of West Virginia
7.467% due 06/01/2047		3,170,000		2,231,617

The accompanying notes are an integral part of the financial statements.

352

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)

	Shares or Principal Amount		Value
MUNICIPAL BONDS (continued)
Wisconsin - 0.11%
Badger Tobacco Asset Securitization Corp.
6.125% due 06/01/2027	$	1,865,000	$	2,044,264
TOTAL MUNICIPAL BONDS (Cost $43,558,776)			$	45,725,458
COLLATERALIZED MORTGAGE
OBLIGATIONS - 6.33%
American Home Mortgage Investment Trust, Series 2004-4, Class 4A
4.39% due 02/25/2045 (b)		212,046		170,689
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-8, Class 2A1
4.8317% due 11/25/2034 (b)		2,925,920		2,664,037
Bear Stearns Adjustable Rate Mortgage Trust, Series 2004-9, Class 22A1
4.5915% due 11/25/2034 (b)		916,221		822,731
Bear Stearns Alt-A Trust, Series 2005-7, Class 22A1
5.4901% due 09/25/2036 (b)		1,055,307		727,829
Bear Stearns Commercial Mortgage Securities, Series 2007-PW15, Class A4
5.331% due 02/11/2044		400,000		333,058
Bear Stearns Commercial Mortgage Securities, Series 2007-PW18, Class A4
5.70% due 06/11/2050		4,300,000		3,664,978
Bear Stearns Commercial Mortgage Securities, Series 2007-T26, Class A4
5.471% due 01/12/2045 (b)		1,000,000		921,193
Bear Stearns Mortgage Funding Trust, Series 2007-AR1, Class 2A1
0.3356% due 02/25/2037 (b)		1,416,158		1,196,547
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class 1A1
2.85% due 12/25/2035 (b)		935,026		798,260
Citigroup Mortgage Loan Trust, Inc., Series 2005-11, Class A2A
4.70% due 12/25/2035		455,612		383,795
Commercial Mortgage Pass-Through Certificates, Series 2006-C8, Class A4
5.306% due 12/10/2046		2,900,000		2,486,303
Countrywide Alternative Loan Trust, Series 2005-62, Class 2A1
2.0508% due 12/25/2035 (b)		11,047,703		4,867,765
Countrywide Alternative Loan Trust, Series 2005-81, Class A1
0.5456% due 02/25/2037 (b)		6,582,524		3,324,025
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-22, Class A3
4.7647% due 11/25/2034 (b)		2,098,728		1,756,910
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-HYB9, Class 1A1
4.6535% due 02/20/2035 (b)		3,720,940		3,259,710
Countrywide Home Loans, Series 2005-HYB9, Class 3A2A
5.25% due 11/20/2025 (b)		545,857		367,914
Credit Suisse Mortgage Capital Certificates, Series 2006-C2, Class A3
5.8463% due 03/15/2039 (b)		300,000		263,934
Credit-Based Asset Servicing and Securitization LLC, Series 2007-SP1, Class A1
0.3556% due 12/25/2037 (b)(f)		1,378,967		1,329,511
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A1
4.938% due 12/15/2040		392,281		395,521
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2007-AR1, Class A3B
0.3356% due 01/25/2047 (b)		914,012		853,692
Federal Home Loan Mortgage Corp., Series 2007-3335, Class BF
0.4228% due 07/15/2019 (b)		2,722,871		2,712,447
Federal Home Loan Mortgage Corp., Series 2637, Class F
0.6728% due 06/15/2018 (b)		249,685		248,528
Federal Home Loan Mortgage Corp., Series 3036, Class NA
5.00% due 07/15/2024		1,121,744		1,139,652
Federal Home Loan Mortgage Corp., Series 3149, Class LF
0.5728% due 05/15/2036 (b)		1,496,973		1,483,305
Federal Home Loan Mortgage Corp., Series 3335, Class FT
0.4228% due 08/15/2019 (b)		6,213,260		6,187,655
Federal Home Loan Mortgage Corp., Series T-63, Class 1A1
2.41% due 02/25/2045 (b)		184,824		175,379
Federal National Mortgage Association, REMIC, Series 2007-73, Class A1
0.3256% due 07/25/2037 (b)		3,801,463		3,429,240
Federal National Mortgage Association, Series 2003-21, Class M
5.00% due 02/25/2017		337,237		348,342
Federal National Mortgage Association, Series 2003-37, Class HY
5.00% due 12/25/2016		5,469,051		5,626,510
Federal National Mortgage Association, Series 2003-W6, Class F
0.6156% due 09/25/2042 (b)		1,696,924		1,590,503
Federal National Mortgage Association, Series 2005-120, Class NF
0.3656% due 01/25/2021 (b)		10,076,856		10,022,927
Federal National Mortgage Association, Series 2005-33, Class QA
5.00% due 06/25/2027		903,128		921,761
Federal National Mortgage Association, Series 2006-5, Class 3A2
4.2413% due 02/25/2036 (b)		343,028		336,892
Greenpoint Mortgage Funding Trust, Series 2006-AR6, Class A1A
0.3456% due 10/25/2046 (b)		1,295,290		1,102,912
Greenpoint Mortgage Funding Trust, Series 2006-AR8, Class 1A1A
0.3456% due 01/25/2047 (b)		1,472,439		1,166,168
Greenwich Capital Commercial Funding Corp, Series 2005-GG3, Class A4
4.799% due 08/10/2042 (b)		100,000		91,051
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4
5.444% due 03/10/2039		1,400,000		1,194,548
GS Mortgage Securities Corp II, Series 2007-EOP, Class A1
0.3656% due 03/06/2020 (b)(f)		2,832,257		2,573,139

The accompanying notes are an integral part of the financial statements.

353

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (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-GG10, Class A4
5.9994% due 08/10/2045 (b)	$	3,100,000	$	2,423,442
GSR Mortgage Loan Trust, Series 2005-AR7, Class 6A1
5.2386% due 11/25/2035 (b)		2,628,669		2,237,018
Indymac Index Mortgage Loan Trust, Series 2006-AR14, Class 1A1A
0.3556% due 11/25/2046 (b)		660,347		593,313
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class ASB
6.0064% due 06/15/2049 (b)		100,000		95,591
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class A4
5.882% due 02/15/2051 (b)		1,000,000		814,195
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3
5.42% due 01/15/2049		400,000		335,756
JPMorgan Mortgage Trust, Series 2005-A1, Class 6T1
5.0156% due 02/25/2035 (b)		1,480,876		1,418,182
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A3
5.336% due 05/15/2047		3,000,000		2,553,489
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A1
4.99% due 11/15/2030		511,084		515,754
Lehman Brothers Floating Rate Commercial
Mortgage Trust, Series 2006-LLFA, Class A10.3528% due 09/15/2021 (b)(f)		282,907		252,511
Mellon Residential Funding Corp., Series 2000-TBC3, Class A1
0.7128% due 12/15/2030 (b)		4,448,409		3,802,372
Merrill Lynch Mortgage Investors, Inc., Series 2005-2, Class 3A
1.2656% due 10/25/2035 (b)		531,897		461,537
Merrill Lynch Mortgage Investors, Inc., Series 2005-3, Class 4A
0.5156% due 11/25/2035 (b)		285,017		204,187
Merrill Lynch Mortgage Investors, Inc., Series 2005-A10, Class A
0.4756% due 02/25/2036 (b)		1,045,885		581,323
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4
5.485% due 03/12/2051 (b)		2,000,000		1,558,479
Morgan Stanley Capital I, Series 2007-IQ16, Class A4
5.809% due 12/12/2049		200,000		171,371
Morgan Stanley Capital I, Series 2007-XLFA, Class A1
0.333% due 10/15/2020 (b)(f)		690,053		521,829
Structured Asset Mortgage Investments, Inc., Series 2005-AR5, Class A3
0.5288% due 07/19/2035 (b)		2,199,875		1,658,385
Structured Asset Mortgage Investments, Inc., Series 2005-AR8, Class A1A
0.5456% due 02/25/2036 (b)		615,563		318,675
Structured Asset Mortgage Investments, Inc., Series 2007-AR2, Class 2A1
0.3956% due 03/25/2037 (b)		3,200,255		1,468,503
Thornburg Mortgage Securities Trust, Series 2006-5, Class A1
0.3856% due 08/25/2011 (b)		3,518,095		3,309,049
Thornburg Mortgage Securities Trust, Series 2006-6, Class A1
0.3756% due 11/25/2011 (b)		1,329,373		1,238,654
Wachovia Bank Commercial Mortgage Trust, Series 2006-WL7A, Class A1
0.3628% due 09/15/2021 (b)(f)		7,901,865		5,959,289
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A4
5.509% due 04/15/2047		1,400,000		1,057,724
Wachovia Bank Commercial Mortgage Trust, Series 2007-WHL8, Class A1
0.3528% due 06/15/2020 (b)(f)		3,221,791		2,269,563
WaMu Mortgage Pass-Through Certificates, Series 2002-AR17, Class 1A
2.2508% due 11/25/2042 (b)		225,433		139,871
Washington Mutual, Inc., Series 2001-7, Class A
2.4577% due 05/25/2041 (b)		175,773		155,855
Washington Mutual, Inc., Series 2005-AR19, Class A1A1
0.5356% due 12/26/2045 (b)		3,058,268		1,640,241
Wells Fargo Mortgage Backed Securities Trust, Series 2004-CC, Class A1
4.9398% due 01/25/2035 (b)		2,503,991		2,227,727
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR2, Class 2A1
4.9485% due 03/25/2036 (b)		2,190,356		1,786,695
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $133,032,410)			$	112,709,941
ASSET BACKED SECURITIES - 2.86%
Access Group, Inc., Series 2008-1, Class A
1.8038% due 10/27/2025 (b)		10,882,558		10,990,505
ACE Securities Corp., Series 2006-ASP5, Class A2A
0.3456% due 10/25/2036 (b)		38,867		38,326
BA Credit Card Trust, Series 2008-A5, Class A5
1.4728% due 12/16/2013 (b)		5,100,000		5,110,053
Bank of America Auto Trust, Series 2009-1A, Class A2
1.70% due 12/15/2011		1,600,000		1,607,825
Bear Stearns Asset Backed Securities Trust, Series 2007-HE5, Class 1A1
0.3556% due 06/25/2047 (b)		801,954		635,454
Bear Stearns Asset Backed Securities, Inc., Series 2007-HE1, Class 21A1
0.3256% due 01/25/2037 (b)		1,940,845		1,659,369
BNC Mortgage Loan Trust, Series 2007-2, Class A2
0.3656% due 05/25/2037 (b)		1,595,937		1,122,498
Carrington Mortgage Loan Trust, Series 2005-NC5, Class A2
0.5856% due 10/25/2035 (b)		1,350,593		1,214,255
Countrywide Asset-Backed Certificates, Series 2006-15, Class A1
0.3756% due 10/25/2046 (b)		496,217		477,454
Countrywide Asset-Backed Certificates, Series 2006-16, Class 2A1
0.3156% due 12/25/2046 (b)		56,825		55,981

The accompanying notes are an integral part of the financial statements.

354

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)

	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Countrywide Asset-Backed Certificates, Series 2006-17, Class 2A1
0.3156% due 03/25/2047 (b)	$	106,206	$	104,314
Countrywide Asset-Backed Certificates, Series 2006-18, Class 2A1
0.3156% due 03/25/2037 (b)		589,615		582,901
Countrywide Asset-Backed Certificates, Series 2006-19, Class 2A1
0.3256% due 03/25/2037 (b)		264,204		259,146
Countrywide Asset-Backed Certificates, Series 2007-1, Class 2A1
0.3156% due 07/25/2037 (b)		5,379,130		5,067,574
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF15, Class A3
0.3156% due 11/25/2036 (b)		907,065		892,080
First Franklin Mortgage Loan Asset Backed Certificates, Series 2007-FF1, Class A2A
0.3056% due 01/25/2038 (b)		932,322		885,088
Ford Credit Auto Owner Trust, Series 2009-C, Class A2
2.00% due 12/15/2011		700,000		705,204
GE Capital Commercial Mortgage Corp., Series 2002-3A, Class A1
4.229% due 12/10/2037		2,980,934		3,012,986
GSAMP Trust, Series 2006-FM2, Class A2A
0.3356% due 09/25/2036 (b)		76,323		74,915
GSAMP Trust, Series 2007-FM1, Class A2A
0.3356% due 12/25/2036 (b)		1,097,200		656,334
HFC Home Equity Loan Asset Backed Certificates, Series 2005-1, Class A
0.5625% due 01/20/2034 (b)		2,382,489		2,012,182
HSBC Asset Loan Obligation, Series 2007-WF1, Class A1
0.3256% due 12/25/2036 (b)		4,288,615		3,830,735
HSI Asset Securitization Corp. Trust, Series 2006-HE2, Class 2A1
0.3156% due 12/25/2036 (b)		370,768		245,905
JPMorgan Mortgage Acquisition Corp., Series 2006-HE3, Class A2
0.3526% due 11/25/2036 (b)		82,665		79,827
JPMorgan Mortgage Acquisition Corp., Series 2006-WMC3, Class A2
0.3156% due 08/25/2036 (b)		89,166		86,420
JPMorgan Mortgage Acquisition Corp., Series 2007-HE1, Class AV1
0.3256% due 01/25/2032 (b)		1,572,888		1,066,412
Long Beach Mortgage Loan Trust, Series 2004-4, Class 1A1
0.5456% due 10/25/2034 (b)		58,753		44,273
Master Asset Backed Securities Trust, Series 2007-HE1, Class A1
0.3456% due 05/25/2037 (b)		904,168		755,411
Morgan Stanley Asset Backed Securities Capital I, Series 2006-NC5, Class A2A
0.3056% due 10/25/2036 (b)		257,893		245,506
Morgan Stanley Asset Backed Securities Capital I, Series 2007-HE1, Class A2A
0.3156% due 11/25/2036 (b)		986,261		948,068
Option One Mortgage Loan Trust, Series 2007-1, Class 2A1
0.3156% due 01/25/2037 (b)		416,245		399,691
Park Place Securities, Inc., Series 2004-MCW1, Class A1
0.5776% due 10/25/2034 (b)		1,985,817		1,783,622
Residential Asset Mortgage Products, Inc., Series 2006-RZ4, Class A1A
0.3456% due 10/25/2036 (b)		129,736		128,974
Residential Asset Securities Corp., Series 2006-EMX9, Class 1A1
0.3356% due 11/25/2036 (b)		189,175		187,379
Residential Asset Securities Corp., Series 2006-KS9, Class AI1
0.3356% due 11/25/2036 (b)		139,891		138,688
Saxon Asset Securities Trust, Series 2006-3, Class A1
0.3256% due 10/25/2046 (b)		93,738		91,472
SBI Heloc Trust, Series 2006-1A, Class 1A2A
0.4356% due 08/25/2036 (b)(f)		342,684		297,761
Securitized Asset Backed Receivables LLC Trust, Series 2007-HE1, Class A2A
0.3256% due 12/25/2036 (b)		793,661		434,301
Specialty Underwriting & Residential Finance, Series 2007-BC1, Class A2A
0.3256% due 01/25/2038 (b)		1,781,438		1,512,577
Structured Asset Securities Corp., Series 2006-11, Class A1
4.3997% due 10/25/2035 (b)(f)		1,236,350		824,791
Structured Asset Securities Corp., Series 2006-BC3, Class A2
0.3156% due 10/25/2036 (b)		688,966		643,491
TOTAL ASSET BACKED SECURITIES (Cost $55,386,626)			$	50,909,748
DEFAULTED BONDS BEYOND MATURITY DATES - 0.03%
Financial Services - 0.03%
Lehman Brothers Holdings, Inc., MTN
5.3744% due 11/24/2008 ^		1,200,000		207,000
5.415% due 12/23/2008 ^		400,000		69,000
5.5981% due 04/03/2009 ^ (b)		1,300,000		224,250
				500,250
TOTAL DEFAULTED BONDS BEYOND MATURITY DATES (Cost $2,900,286)			$	500,250
PREFERRED STOCKS - 0.55%
Banking - 0.02%
State Street Capital Trust IV (k)		400,000		249,790
Building Materials & Construction - 0.00%
General Motors Corp., Series B, 5.25%		20,000		66,000
Financial Services - 0.53%
Wells Fargo & Company, Series L, 7.50%		11,000		9,377,500
Insurance - 0.00%
American International Group, Inc., 8.50%		6,200		69,750
TOTAL PREFERRED STOCKS (Cost $8,077,500)			$	9,763,040

The accompanying notes are an integral part of the financial statements.

355

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Total Return Fund (continued)

	Shares or Principal Amount		Value
TERM LOANS - 0.50%
Financial Services - 0.41%
Chrysler Financial
4.29% due 08/03/2012 (b)	$	7,860,000	$	7,427,700
Semiconductors - 0.09%
Sensata Technologies, Inc.
2.2459% due 04/27/2013 (b)		1,954,660		1,596,306
TOTAL TERM LOANS (Cost $9,587,416)			$	9,024,006
REPURCHASE AGREEMENTS - 0.86%
JPMorgan Chase & Company Tri-Party Repurchase Agreement dated 08/31/2009 at 0.20% to be repurchased at $10,700,059 on 09/01/2009, collateralized by $5,340,000 U.S. Treasury Notes, 5.125% due 05/15/2016 (valued at $6,144,555, including interest) and $4,601,300 U.S. Treasury Notes, 3.125% due 08/31/2013 (valued at $4,811,234, including interest)	$	10,700,000	$	10,700,000
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $4,724,009 on 09/01/2009, collateralized by $4,820,000 Federal National Mortgage Association, zero coupon due 12/30/2009 (valued at $4,820,000, including interest)		4,724,000		4,724,000
TOTAL REPURCHASE AGREEMENTS (Cost $15,424,000)			$	15,424,000
SHORT TERM INVESTMENTS - 0.02%
U.S. Treasury Bills
0.242% due 02/18/2010 ***	$	423,000	$	422,510
TOTAL SHORT TERM INVESTMENTS (Cost $422,510)			$	422,510
Total Investments (Total Return Fund) (Cost $2,185,968,147) - 121.73%			$	2,167,725,148
Other assets and liabilities, net - (21.73)%				(387,024,091	)
TOTAL NET ASSETS - 100.00%			$	1,780,701,057

Schedule of Securities Sold Short

	Shares or Principal Amount		Value
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 100.00%
Federal National Mortgage Association
5.50%, TBA **	$	89,000,000	$	92,355,863
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (Proceeds $92,032,337)			$	92,355,863
Total Securities Sold Short (Total Return Fund) (Proceeds $92,032,337)			$	92,355,863

U.S. Government Securities Fund

	Shares or Principal Amount		Value
U.S. TREASURY OBLIGATIONS - 7.52%
Treasury Inflation Protected
Securities (d) - 5.68%
2.50% due 01/15/2029	$	361,566	$	378,627
2.00% due 01/15/2026		2,411,897		2,343,307
2.375% due 01/15/2027		245,932		251,850
0.875% due 04/15/2010		5,042,403		5,032,949
				8,006,733
U.S. Treasury Bonds - 1.84%
3.50% due 02/15/2039		920,000		812,763
7.125% due 02/15/2023		140,000		185,456
8.75% due 05/15/2020		210,000		303,385
8.875% due 08/15/2017		930,000		1,292,990
				2,594,594
TOTAL U.S. TREASURY OBLIGATIONS (Cost $10,498,154)			$	10,601,327
U.S. GOVERNMENT AGENCY OBLIGATIONS - 63.50%
Federal Home Loan Bank - 9.97%
4.50% due 10/09/2009 (a)		9,400,000		9,441,407
5.00% due 09/18/2009 (a)		4,600,000		4,609,839
				14,051,246
Federal Home Loan Mortgage Corp. - 13.32%
5.00% due 08/01/2035		12,218,868		12,596,920
5.00% TBA **		3,000,000		3,079,453
5.50% due 11/01/2035		768,346		804,692
5.854% due 01/01/2037 (b)		1,499,403		1,580,248
6.00% due 10/01/2010 to 12/01/2028		311,713		332,236
7.00% due 02/01/2011 to 06/01/2032		324,448		351,431
9.00% due 10/01/2017		4,278		4,755
9.50% due 08/01/2020		16,697		19,035
11.75% due 12/01/2013		373		385
12.00% due 07/01/2020		3,252		3,700
				18,772,855
Federal National Mortgage
Association - 39.31%
4.75% due 11/19/2012		2,520,000		2,749,683
5.00% due 12/01/2019 to 07/01/2038		7,778,241		8,074,047
5.00% TBA **		8,500,000		8,742,156
5.50% due 04/01/2018 to 08/01/2037		19,755,276		20,692,309
5.50% TBA **		1,000,000		1,052,031
5.74% due 08/01/2037 (b)		1,566,362		1,663,281
6.00% due 02/01/2037		5,063,217		5,362,275
6.00% TBA **		1,700,000		1,794,922
6.50% due 02/01/2026 to 10/01/2037		3,930,427		4,226,239
7.00% due 07/01/2022 to 01/01/2034		487,541		534,351
7.50% due 09/01/2029 to 02/01/2031		101,463		111,464
8.00% due 06/01/2017 to 03/01/2033		224,900		249,954
8.50% due 08/01/2019		60,557		67,960
9.00% due 05/01/2021		3,663		4,003
11.50% due 09/01/2013 to 09/01/2019		15,034		16,818
12.00% due 01/01/2013 to 04/01/2016		40,757		46,353
12.50% due 01/01/2013 to 09/01/2015		10,368		11,483
13.50% due 11/01/2014		5,207		5,718
				55,405,047
Government National Mortgage
Association - 0.90%
5.00% TBA **		700,000		720,016

The accompanying notes are an integral part of the financial statements.

356

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Government Securities Fund (continued)

	Shares or Principal Amount		Value
U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)
Government National Mortgage Association (continued)
6.50% due 02/15/2034 to 09/15/2034	$	282,074	$	304,745
7.50% due 03/15/2026 to 12/15/2027		118,756		130,715
8.50% due 06/15/2025		104,883		118,174
11.00% due 09/15/2015		515		593
				1,274,243
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $86,458,204)			$	89,503,391
COLLATERALIZED MORTGAGE
OBLIGATIONS - 13.48%
American Home Mortgage Assets, Series 2006-3, Class 3A12
0.4556% due 10/25/2046 (b)		1,001,769		497,691
American Home Mortgage Investment Trust, Series 2006-2, Class 1A1
0.3456% due 06/25/2046 (b)		226,388		201,496
Bear Stearns Alt-A Trust, Series 2004-11, Class 2A2
4.8208% due 11/25/2034 (b)		485,558		325,804
Commercial Mortgage Pass-Through Certificates, Series 2006-C8, Class A4
5.306% due 12/10/2046		1,000,000		857,346
Countrywide Alternative Loan Trust, Series 2005-17, Class 2A1
0.5056% due 06/25/2035 (b)		406,117		221,894
Countrywide Alternative Loan Trust, Series 2005-59, Class 1A1
0.6163% due 11/20/2035 (b)		310,161		160,821
Countrywide Alternative Loan Trust, Series 2006-OA10, Class 4A1
0.4556% due 08/25/2046 (b)		1,130,019		549,208
Countrywide Alternative Loan Trust, Series 2006-OA11, Class A4
0.4556% due 09/25/2046 (b)		1,211,619		521,399
Countrywide Alternative Loan Trust, Series 2006-OA7, Class 3A1
0.4756% due 06/25/2046 (b)		710,148		366,226
Countrywide Alternative Loan Trust, Series 2006-OA9, Class 2A1B
0.4725% due 07/20/2046 (b)		1,246,297		583,438
Countrywide Alternative Loan Trust, Series 2006-OC2, Class 2A3
0.5556% due 02/25/2036 (b)		1,000,000		175,053
Countrywide Home Loans, Series 2006-OA5, Class 1A1
0.4656% due 04/25/2046 (b)		531,702		255,076
Federal Home Loan Mortgage Corp., Series 2525, Class AM
4.50% due 04/15/2032		240,246		241,478
Federal National Mortgage Association Whole Loan, Series 2003-W12, Class 2A7
4.68% due 06/25/2043		4,489,227		4,428,339
Federal National Mortgage Association Whole Loan, Series 2005-W3, Class 2AF
0.4856% due 03/25/2045 (b)		445,598		403,039
Federal National Mortgage Association Whole Loan, Series 2003-W14, Class 2A
5.1254% due 01/25/2043 (b)		660,500		679,293
Harborview Mortgage Loan Trust, Series 2005-7, Class 1A1
3.682% due 06/19/2045 (b)		401,020		196,680
Impac CMB Trust, Series 2004-5, Class 1A1
0.6256% due 10/25/2034 (b)		681,699		432,906
Impac Secured Assets Corp., Series 2005-2, Class A1
0.5856% due 03/25/2036 (b)		701,441		300,086
JPMorgan Chase Commercial Mortgage Securities Corp, Series 2006-CB17, Class A4
5.429% due 12/12/2043		1,200,000		1,078,637
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class A4
5.661% due 03/15/2039		460,000		425,588
LB-UBS Commercial Mortgage Trust, Series 2006-C7, Class A3
5.347% due 11/15/2038		1,450,000		1,277,776
Luminent Mortgage Trust, Series 2006-4, Class A1A
0.4556% due 05/25/2046 (b)		892,099		405,528
Master Adjustable Rate Mortgages Trust, Series 2004-15, Class 1A1
5.2659% due 12/25/2034 (b)		60,074		41,966
Master Adjustable Rate Mortgages Trust., Series 2007-3, Class 12A1
0.4656% due 05/25/2047 (b)		1,545,187		706,671
Morgan Stanley Mortgage Loan Trust, Series 2006-8AR, Class 1A2
0.3356% due 06/25/2036 (b)		313,513		272,372
Novastar Mortgage-Backed Notes, Series 2006-MTA1, Class 2A1A
0.4556% due 09/25/2046 (b)		895,182		431,417
Structured Asset Mortgage Investments, Inc., Series 2006-AR6, Class 1A1
0.4456% due 07/25/2046 (b)		790,870		401,103
Structured Asset Mortgage Investments, Inc., Series 2006-AR7, Class A1A
0.4756% due 08/25/2036 (b)		1,334,642		673,015
Thornburg Mortgage Securities Trust, Series 2007-4, Class 2A1
6.2057% due 09/25/2037 (b)		570,987		424,480
Thornburg Mortgage Securities Trust, Series 2007-4, Class 3A1
6.1938% due 09/25/2037 (b)		560,089		416,103
WaMu Mortgage Pass-Through Certificates, Series 2005-AR17, Class A1A1
0.5356% due 12/25/2045 (b)		742,468		434,648
Washington Mutual, Inc., Series 2005-AR13, Class A1B3
0.6256% due 10/25/2045 (b)		509,257		193,469
Washington Mutual, Inc., Series 2005-AR8, Class 2A1A
0.5556% due 07/25/2045 (b)		728,592		422,264
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $28,721,505)			$	19,002,310
ASSET BACKED SECURITIES - 6.06%
ACE Securities Corp., Series 2006-GP1, Class A
0.3956% due 02/25/2031 (b)		492,889		338,032
ACE Securities Corp., Series 2006-SL3, Class A1
0.3656% due 06/25/2036 (b)		705,934		86,099

The accompanying notes are an integral part of the financial statements.

357

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Government Securities Fund (continued)

	Shares or Principal Amount		Value
ASSET BACKED SECURITIES (continued)
Aegis Asset Backed Securities Trust, Series 2004-2, Class A3
0.7456% due 06/25/2034 (b)	$	173,194	$	149,696
Amortizing Residential Collateral Trust, Series 2001-BC6, Class A
0.9656% due 10/25/2031 (b)		524,408		362,137
Countrywide Asset-Backed Certificates, Series 2002-BC2, Class A
0.8056% due 04/25/2032 (b)		259,903		150,795
Countrywide Home Equity Loan Trust, Series 2004-I, Class A
0.5628% due 02/15/2034 (b)		637,285		272,751
Countrywide Home Equity Loan Trust, Series 2005-E, Class 2A
0.4928% due 11/15/2035 (b)		207,273		67,875
Countrywide Home Equity Loan Trust, Series 2006-E, Class 2A
0.4128% due 07/15/2036 (b)		667,079		237,082
Countrywide Home Equity Loan Trust, Series 2006-RES, Class 4E1B
0.5328% due 07/25/2036 (b)(f)		645,727		129,006
Countrywide Home Equity Loan Trust, Series 2006-RES, Class 4F1B
0.5328% due 05/15/2034 (b)(f)		771,483		154,175
Countrywide Home Equity Loan Trust, Series 2007-GW, Class A
0.8228% due 08/15/2037 (b)		1,195,794		582,866
Credit Suisse Mortgage Capital Certificates, Series 2006-CF2, Class A1
0.5256% due 05/25/2036 (b)(f)		571,211		395,665
GMAC Mortgage Corp. Loan Trust, Series 2006-HE1, Class A
0.4756% due 11/25/2036 (b)		1,327,927		445,085
GSAA Home Equity Trust, Series 2005-5, Class A4
0.5356% due 02/25/2035 (b)		123,153		110,567
GSAMP Trust, Series 2006-S4, Class A1
0.3556% due 05/25/2036 (b)		404,417		35,432
IndyMac Seconds Asset Backed Trust, Series 2006-A, Class A
0.3956% due 06/25/2036 (b)		928,410		58,671
Lehman XS Trust, Series 2006-2N, Class 1A1
0.5256% due 02/25/2046 (b)		955,465		478,380
Lehman XS Trust, Series 2006-GP3, Class 3A1A
0.3356% due 06/25/2046 (b)		295,232		258,540
Lehman XS Trust, Series 2006-GP4, Class 3A1A
0.3356% due 08/25/2046 (b)		484,126		413,327
Long Beach Mortgage Loan Trust, Series 2005-3, Class 2A2
0.5456% due 08/25/2045 (b)		272,161		251,623
Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-H1, Class 2A1
1.7656% due 10/25/2037 (b)		1,250,707		849,760
Morgan Stanley Mortgage Loan Trust, Series 2006-4SL, Class A1
0.4156% due 03/25/2036 (b)		514,833		86,204
Nelnet Student Loan Trust, Series 2008-4, Class A4
1.9837% due 04/25/2024 (b)		320,000		322,687
RAAC Series, Series 2006-RP3, Class A
0.5356% due 05/25/2036 (b)(f)		809,161		277,432
SACO I Trust, Inc., Series 2006-6, Class A
0.3956% due 06/25/2036 (b)		636,512		46,754
SACO I Trust, Inc., Series 2006-7, Class A1
0.3956% due 07/25/2036 (b)		585,746		48,672
SLM Student Loan Trust, Series 2006-5, Class A2
0.4938% due 07/25/2017 (b)		257,686		257,407
Structured Asset Securities Corp., Series 2006-ARS1, Class A1
0.3756% due 02/25/2036 (b)(f)		524,438		48,269
Truman Capital Mortgage Loan Trust, Series 2006-1, Class A
0.5256% due 03/25/2036 (b)(f)		889,671		497,032
Washington Mutual, Inc., Series 2007-HE3, Class 2A2
0.4356% due 05/25/2037 (b)		2,300,000		808,974
Washington Mutual, Inc., Series 2007-HE3, Class 2A4
0.5556% due 05/25/2037 (b)		1,200,000		321,877
TOTAL ASSET BACKED SECURITIES (Cost $20,927,170)			$	8,542,872
PREFERRED STOCKS - 0.06%
Financial Services - 0.06%
Federal Home Loan Mortgage Corp.,
Series Z, 8.375% *		23,775		50,879
Federal National Mortgage Association,
Series S, 8.25% *		17,050		34,100
				84,979
TOTAL PREFERRED STOCKS (Cost $1,020,625)			$	84,979
REPURCHASE AGREEMENTS - 12.98%
Deutsche Bank Tri-Party Repurchase Agreement dated 08/31/2009 at 0.19% to be repurchased at $13,333,070 on 09/01/2009, collateralized by $13,538,000 Federal National Mortgage Association, 3.00% due 01/13/2014 (valued at $13,599,598, including interest)	$	13,333,000	$	13,333,000
Goldman Sachs Tri-Party Repurchase Agreement dated 08/31/2009 at 0.19% to be repurchased at $4,967,026 on 09/01/2009, collateralized by $5,005,000 Federal National Mortgage Association, 2.20% due 04/23/2012 (valued at $5,067,563, including interest)		4,967,000		4,967,000
TOTAL REPURCHASE AGREEMENTS (Cost $18,300,000)			$	18,300,000
SHORT TERM INVESTMENTS - 15.55%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,250,839	$	12,522,525
U.S. Treasury Bills
0.00% due 03/11/2010		4,400,000		4,394,469

The accompanying notes are an integral part of the financial statements.

358

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Government Securities Fund (continued)

	Shares or Principal Amount		Value
SHORT TERM INVESTMENTS (continued)
U.S. Treasury Bills (continued)	$	5,000,000	$	4,993,682
0.10% due 02/25/2010
TOTAL SHORT TERM INVESTMENTS (Cost $21,903,326)			$	21,910,676
Total Investments (U.S. Government Securities Fund) (Cost $187,828,984) - 119.15%			$	167,945,555
Other assets and liabilities, net - (19.15)%				(26,988,425	)
TOTAL NET ASSETS - 100.00%			$	140,957,130

U.S. High Yield Bond Fund

	Shares or Principal Amount		Value
CORPORATE BONDS - 74.94%
Advertising - 0.26%
R.H. Donnelley Corp.
6.875% due 01/15/2013 ^	$	4,500,000	$	264,375
11.75% due 05/15/2015 ^		1,100,000		682,000
R.H. Donnelley Corp., Series A-3
8.875% due 01/15/2016 ^		1,375,000		80,781
Sheridan Group, Inc.
10.25% due 08/15/2011		1,500,000		1,005,000
				2,032,156
Agriculture - 0.44%
Mosaic Company
7.375% due 12/01/2014 (f)		715,000		755,219
7.625% due 12/01/2016 (f)		2,588,000		2,665,640
				3,420,859
Air Travel - 0.01%
Continental Airlines, Inc., Series 00-1
8.499% due 05/01/2011		108,100		85,399
Auto Parts - 0.30%
Allison Transmission, Inc., PIK
11.25% due 11/01/2015 (f)		1,145,000		961,800
Goodyear Tire & Rubber Company
8.625% due 12/01/2011		750,000		757,500
10.50% due 05/15/2016		550,000		587,125
				2,306,425
Auto Services - 1.42%
KAR Holdings, Inc.
8.75% due 05/01/2014		1,200,000		1,131,000
10.00% due 05/01/2015		10,725,000		9,867,000
				10,998,000
Automobiles - 0.43%
Ford Motor Company
9.50% due 09/15/2011		775,000		728,500
General Motors Corp.
7.20% due 01/15/2011 ^		325,000		47,938
Sonic Automotive, Inc., Series B
8.625% due 08/15/2013		3,058,000		2,584,010
				3,360,448
Broadcasting - 0.60%
Barrington Broadcasting Group LLC
10.50% due 08/15/2014		4,400,000		1,584,000
Fisher Communications, Inc.
8.625% due 09/15/2014		3,375,000		3,071,250
Muzak Finance Corp.
13.00% due 03/15/2010 ^		700,000		35,000
				4,690,250
Building Materials & Construction - 0.05%
Esco Corp.
4.5044% due 12/15/2013 (b)(f)		400,000		357,000
Business Services - 5.58%
Cornell Companies, Inc.
10.75% due 07/01/2012		3,225,000		3,261,281
First Data Corp.
9.875% due 09/24/2015		3,425,000		2,928,375
10.55% due 09/24/2015		5,950,000		4,611,250
Iron Mountain, Inc.
7.75% due 01/15/2015		165,000		164,587
8.00% due 06/15/2020		4,400,000		4,251,500
Lender Processing Services, Inc.
8.125% due 07/01/2016		5,375,000		5,495,938
NCO Group, Inc.
11.875% due 11/15/2014		4,975,000		2,897,938
Rural/Metro Corp.
9.875% due 03/15/2015		1,900,000		1,771,750
12.75 due 03/15/2016		3,880,000		3,259,200
SunGard Data Systems, Inc.
4.875% due 01/15/2014		1,600,000		1,440,000
9.125% due 08/15/2013		365,000		361,350
10.25% due 08/15/2015		13,039,000		12,908,610
				43,351,779
Cable & Television - 7.97%
Charter Communications Holdings II LLC
10.25% due 09/15/2010 ^		1,425,000		1,583,531
Charter Communications Operating LLC
10.00% due 04/30/2012 ^ (f)		10,900,000		10,981,750
10.375% due 04/30/2014 ^ (f)		6,250,000		6,328,125
CSC Holdings, Inc.
6.75% due 04/15/2012		1,825,000		1,834,125
CSC Holdings, Inc., Series B
7.625% due 04/01/2011		9,385,000		9,502,312
DirecTV Holdings LLC
6.375% due 06/15/2015		200,000		202,500
8.375% due 03/15/2013		12,375,000		12,684,375
EchoStar DBS Corp.
6.375% due 10/01/2011		3,791,000		3,795,739
6.625% due 10/01/2014		2,250,000		2,137,500
7.00% due 10/01/2013		600,000		588,000
7.125% due 02/01/2016		4,180,000		4,012,800
7.75% due 05/31/2015		2,750,000		2,695,000
Videotron Ltee
6.375% due 12/15/2015		1,070,000		981,725
6.875% due 01/15/2014		2,460,000		2,352,375
9.125% due 04/15/2018		2,110,000		2,226,050
				61,905,907

The accompanying notes are an integral part of the financial statements.

359

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Cellular Communications - 3.32%
Centennial Communications Corp.
6.3469% due 01/01/2013 (b)(f)	$	2,875,000	$	2,788,750
8.125% due 02/01/2014		403,000		403,000
10.00% due 01/01/2013		7,770,000		7,964,250
Cricket Communications, Inc.
9.375% due 11/01/2014		8,322,000		7,843,485
Crown Castle International Corp.
9.00% due 01/15/2015		1,300,000		1,352,000
MetroPCS Wireless, Inc.
9.25% due 11/01/2014		5,525,000		5,421,406
				25,772,891
Chemicals - 1.01%
American Pacific Corp.
9.00% due 02/01/2015		1,500,000		1,353,750
Huntsman International LLC
7.875% due 11/15/2014		3,550,000		3,159,500
Innophos Holdings, Inc.
9.50% due 04/15/2012 (f)		600,000		564,000
Innophos, Inc.
8.875% due 08/15/2014		2,850,000		2,764,500
				7,841,750
Commercial Services - 0.47%
Mac-Gray Corp.
7.625% due 08/15/2015		3,770,000		3,656,900
Computer Services - 0.69%
Affiliated Computer Services, Inc.
5.20% due 06/01/2015		6,300,000		5,370,750
Computers & Business Equipment - 0.57%
Seagate Technology HDD Holdings
6.375% due 10/01/2011		2,975,000		2,930,375
6.80% due 10/01/2016		1,275,000		1,141,125
Seagate Technology International
10.00% due 05/01/2014 (f)		300,000		321,750
				4,393,250
Containers & Glass - 1.95%
Crown Americas LLC
7.625% due 05/15/2017 (f)		500,000		496,250
Crown Holdings, Inc.
8.00% due 04/15/2023		6,240,000		5,803,200
Graham Packaging Company
9.875% due 10/15/2014		3,260,000		3,243,700
Owens-Brockway Glass Container, Inc.
7.375% due 05/15/2016 (f)		1,000,000		995,000
8.25% due 05/15/2013		3,025,000		3,055,250
Owens-Illinois, Inc.
7.80% due 05/15/2018		1,550,000		1,526,750
				15,120,150
Correctional Facilities - 0.94%
Corrections Corp. of America
6.25% due 03/15/2013		2,925,000		2,859,188
7.75% due 06/01/2017		1,000,000		987,500
Geo Group, Inc.
8.25% due 07/15/2013		3,440,000		3,422,800
				7,269,488
Crude Petroleum & Natural Gas - 2.77%
AmeriGas Partners LP
7.125% due 05/20/2016		3,550,000		3,399,125
7.25% due 05/20/2015		800,000		772,000
Calfrac Holdings LP
7.75% due 02/15/2015 (f)		2,925,000		2,661,750
Chesapeake Energy Corp.
6.375% due 06/15/2015		200,000		182,250
6.625% due 01/15/2016		900,000		817,875
7.50% due 09/15/2013		900,000		882,000
7.50% due 06/15/2014		1,355,000		1,314,350
9.50% due 02/15/2015		500,000		510,000
Forest Oil Corp.
7.25% due 06/15/2019		1,875,000		1,762,500
8.50% due 02/15/2014 (f)		250,000		251,250
Hilcorp Energy I LP
7.75% due 11/01/2015 (f)		1,330,000		1,226,925
9.00% due 06/01/2016 (f)		3,625,000		3,461,875
SandRidge Energy, Inc.
8.00% due 06/01/2018 (f)		1,525,000		1,380,125
SandRidge Energy, Inc., PIK
8.625% due 04/01/2015		3,075,000		2,890,500
				21,512,525
Educational Services - 0.18%
Education Management Corp.
8.75% due 06/01/2014		1,375,000		1,409,375
Electrical Utilities - 1.35%
Calpine Construction Finance Company LP
8.00% due 06/01/2016 (f)		3,625,000		3,606,875
Ipalco Enterprises, Inc.
7.25% due 04/01/2016 (f)		6,025,000		5,844,250
8.625% due 11/14/2011		1,050,000		1,071,000
				10,522,125
Electronics - 0.45%
L-3 Communications Corp.
5.875% due 01/15/2015		3,750,000		3,506,250
Energy - 2.02%
NRG Energy, Inc.
7.25% due 02/01/2014		1,050,000		1,021,125
7.375% due 02/01/2016		6,548,000		6,261,525
7.375% due 01/15/2017		8,800,000		8,382,000
				15,664,650
Financial Services - 6.06%
American General Finance Corp.
6.90% due 12/15/2017		1,450,000		895,327
CIT Group, Inc.
5.65% due 02/13/2017		1,178,000		661,963
5.80% due 10/01/2036		750,000		402,269
6.00% due 04/01/2036		9,905,000		5,231,514
7.625% due 11/30/2012		950,000		538,239
Citigroup, Inc.
5.00% due 09/15/2014		2,600,000		2,382,149
5.625% due 08/27/2012		1,600,000		1,586,298
5.875% due 02/22/2033		3,275,000		2,487,251
6.00% due 10/31/2033		1,300,000		1,001,098
El Paso Performance-Linked Trust
7.75% due 07/15/2011 (f)		1,750,000		1,788,281

The accompanying notes are an integral part of the financial statements.

360

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Financial Services (continued)
Ford Motor Credit Company LLC
7.00% due 10/01/2013	$	1,580,000	$	1,408,986
7.25% due 10/25/2011		340,000		319,717
7.375% due 10/28/2009		7,100,000		7,100,589
8.00% due 12/15/2016		6,625,000		5,804,447
GMAC LLC
6.00% due 12/15/2011 (f)		930,000		827,700
Lehman Brothers Holdings, Inc.
7.875% due 08/15/2010 ^		3,425,000		599,375
NSG Holdings, Inc.
7.75% due 12/15/2025 (f)		2,125,000		1,774,375
Nuveen Investments, Inc.
10.50% due 11/15/2015 (f)		13,040,000		9,780,000
Nuveen Investments, Inc., Class A
5.50% due 09/15/2015		4,294,000		2,533,460
				47,123,038
Food & Beverages - 0.51%
Del Monte Corp.
8.625% due 12/15/2012		3,850,000		3,931,812
Funeral Services - 1.56%
Carriage Services, Inc.
7.875% due 01/15/2015		2,050,000		1,845,000
Service Corp. International
6.75% due 04/01/2016		1,385,000		1,301,900
6.75% due 04/01/2015		1,067,000		1,010,983
7.00% due 06/15/2017		2,300,000		2,150,500
7.50% due 04/01/2027		3,688,000		3,116,360
7.625% due 10/01/2018		1,930,000		1,847,975
7.875% due 02/01/2013		850,000		824,500
				12,097,218
Gas & Pipeline Utilities - 4.02%
El Paso Corp, Series GMTN
8.05% due 10/15/2030		700,000		626,431
El Paso Corp.
6.875% due 06/15/2014		500,000		487,749
6.95% due 06/01/2028		1,325,000		1,077,425
7.00% due 06/15/2017		3,000,000		2,819,730
7.25% due 06/01/2018		2,500,000		2,368,073
7.75% due 01/15/2032		8,489,000		7,559,089
7.80% due 08/01/2031		2,550,000		2,273,697
8.25% due 02/15/2016		525,000		530,250
Sabine Pass LNG LP
7.50% due 11/30/2016		15,120,000		12,247,200
7.50% due 11/30/2016 (f)		1,563,000		1,266,030
				31,255,674
Healthcare Products - 1.37%
Biomet, Inc.
11.625% due 10/15/2017		6,590,000		6,968,925
The Cooper Companies, Inc.
7.125% due 02/15/2015		3,916,000		3,685,935
				10,654,860
Healthcare Services - 5.59%
Centene Corp.
7.25% due 04/01/2014		2,625,000		2,516,719
Community Health Systems, Inc.
8.875% due 07/15/2015		10,310,000		10,348,662
DaVita, Inc.
6.625% due 03/15/2013		1,375,000		1,333,750
HCA, Inc.
7.875% due 02/01/2011		885,000		889,425
8.50% due 04/15/2019 (f)		2,125,000		2,151,563
9.125% due 11/15/2014		600,000		606,000
9.25% due 11/15/2016		5,975,000		6,049,687
HCA, Inc., PIK
9.625% due 11/15/2016		1,709,000		1,726,090
Health Management Associates, Inc.
6.125% due 04/15/2016		2,000,000		1,785,000
Healthsouth Corp.
10.75% due 06/15/2016		2,100,000		2,220,750
Multiplan, Inc.
10.375% due 04/15/2016 (f)		2,700,000		2,619,000
Sun Healthcare Group, Inc.
9.125% due 04/15/2015		3,967,000		3,907,495
Tenet Healthcare Corp.
6.875% due 11/15/2031		657,000		433,620
9.00% due 05/01/2015 (f)		2,350,000		2,408,750
10.00% due 05/01/2018 (f)		1,850,000		1,993,375
United Surgical Partners International, Inc.
8.875% due 05/01/2017		2,600,000		2,444,000
				43,433,886
Hotels & Restaurants - 0.74%
O’Charleys, Inc.
9.00% due 11/01/2013		6,225,000		5,789,250
Household Appliances - 0.43%
ALH Finance LLC
8.50% due 01/15/2013		3,650,000		3,376,250
Industrial Machinery - 0.79%
Altra Industrial Motion, Inc.
9.00% due 12/01/2011		3,550,000		3,567,750
H&E Equipment Services, Inc.
8.375% due 07/15/2016		3,025,000		2,601,500
				6,169,250
Insurance - 0.88%
HUB International Holdings, Inc.
10.25% due 06/15/2015 (f)		3,900,000		3,276,000
USI Holdings Corp.
9.75% due 05/15/2015 (f)		4,400,000		3,591,500
				6,867,500
Leisure Time - 3.36%
AMC Entertainment, Inc.
8.75% due 06/01/2019		4,525,000		4,491,062
Ameristar Casinos, Inc.
9.25% due 06/01/2014 (f)		800,000		818,000
Chukchansi Economic Development Authority
4.9125% due 11/15/2012 (b)(f)		875,000		643,125
8.00% due 11/15/2013 (f)		2,442,000		1,953,600
Cinemark USA, Inc.
8.625% due 06/15/2019 (f)		7,100,000		7,171,000
Penn National Gaming, Inc.
6.875% due 12/01/2011		4,005,000		4,005,000
Regal Cinemas Corp.
8.625% due 07/15/2019 (f)		1,325,000		1,338,250

The accompanying notes are an integral part of the financial statements.

361

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Leisure Time (continued)
River Rock Entertainment Authority
9.75% due 11/01/2011	$	4,635,000	$	4,078,800
Yonkers Racing Corp.
11.375% due 07/15/2016 (f)		1,550,000		1,577,125
				26,075,962
Mining - 1.61%
Freeport-McMoRan Copper & Gold, Inc.
8.25% due 04/01/2015		1,450,000		1,511,625
8.375% due 04/01/2017		10,550,000		10,998,375
				12,510,000
Oil & Gas Drilling - 0.00%
National Oilwell Varco, Inc., Series B
6.125% due 08/15/2015		23,000		23,302
Paper - 0.39%
AbitibiBowater, Inc.
9.375% due 12/15/2021 ^		675,000		121,500
Bowater Canada Finance Corp.
7.95% due 11/15/2011 ^		23,000		4,370
Georgia-Pacific Corp.
7.125% due 01/15/2017 (f)		2,305,000		2,212,800
P. H. Glatfelter Company
7.125% due 05/01/2016		725,000		681,500
				3,020,170
Petroleum Services - 0.96%
Key Energy Services, Inc.
8.375% due 12/01/2014		4,575,000		4,140,375
Swift Energy Company
7.125% due 06/01/2017		4,250,000		3,357,500
				7,497,875
Pharmaceuticals - 0.77%
Omnicare, Inc.
6.125% due 06/01/2013		750,000		697,500
6.875% due 12/15/2015		3,795,000		3,548,325
Omnicare, Inc., Series OCR
3.25% due 12/15/2035		2,350,000		1,746,917
				5,992,742
Publishing - 0.88%
Nielsen Finance LLC
10.00% due 08/01/2014		725,000		685,125
11.50% due 05/01/2016		400,000		398,000
Nielsen Finance LLC, Discount Notes zero coupon, step up to 12.50% on
08/01/2011 due 08/01/2016		8,275,000		5,792,500
				6,875,625
Real Estate - 1.14%
National Retail Properties, Inc.
5.125% due 06/15/2028		3,700,000		3,686,125
6.875% due 10/15/2017		1,375,000		1,254,155
Realty Income Corp.
6.75% due 08/15/2019		3,550,000		3,457,299
Ventas Realty LP, Series 1
6.50% due 06/01/2016		500,000		463,750
				8,861,329
Retail - 0.52%
Federated Retail Holdings, Inc.
5.35% due 03/15/2012		250,000		237,500
Suburban Propane Partners LP
6.875% due 12/15/2013		1,425,000		1,382,250
Toys R Us Property Company I LLC
10.75% due 07/15/2017 (f)		2,400,000		2,436,000
				4,055,750
Sanitary Services - 0.46%
Allied Waste North America, Inc.
6.50% due 11/15/2010		800,000		823,000
6.875% due 06/01/2017		750,000		781,875
Allied Waste North America, Inc., Series B
5.75% due 02/15/2011		300,000		309,750
7.125% due 05/15/2016		1,600,000		1,664,000
				3,578,625
Software - 0.18%
Open Solutions, Inc.
9.75% due 02/01/2015 (f)		2,145,000		1,404,975
Telecommunications Equipment & Services - 2.69%
CC Holdings GS V LLC
7.75% due 05/01/2017 (f)		7,175,000		7,246,750
Intelsat Corp.
9.25% due 08/15/2014		5,925,000		6,013,875
9.25% due 06/15/2016		2,200,000		2,227,500
SBA Telecommunications, Inc.
8.00% due 08/15/2016 (f)		600,000		598,500
8.25% due 08/15/2019 (f)		300,000		301,500
Time Warner Telecom Holdings, Inc.
9.25% due 02/15/2014		3,825,000		3,891,938
United States West Communications, Inc.
6.875% due 09/15/2033		850,000		663,000
				20,943,063
Telephone - 4.93%
Alltel Corp.
7.875% due 07/01/2032		2,950,000		3,617,977
Qwest Communications International, Inc., Series B
7.50% due 02/15/2014		3,450,000		3,329,250
Qwest Corp.
3.8794% due 06/15/2013 (b)		1,700,000		1,572,500
6.50% due 06/01/2017		1,250,000		1,150,000
7.50% due 06/15/2023		1,000,000		850,000
7.50% due 10/01/2014		500,000		495,625
7.625% due 06/15/2015		300,000		297,750
7.875% due 09/01/2011		2,800,000		2,856,000
8.875% due 03/15/2012		2,625,000		2,703,750
Sprint Capital Corp.
6.875% due 11/15/2028		2,100,000		1,527,750
8.75% due 03/15/2032		21,550,000		17,886,500
Valor Telecommunications Enterprise LLC
7.75% due 02/15/2015		2,000,000		2,017,500
				38,304,602
Tires & Rubber - 0.42%
American Tire Distributors Holdings, Inc.
6.8469% due 04/01/2012 (b)		450,000		342,000
10.75% due 04/01/2013		1,475,000		1,224,250

The accompanying notes are an integral part of the financial statements.

362

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)

	Shares or Principal Amount		Value
CORPORATE BONDS (continued)
Tires & Rubber (continued)
Goodyear Tire & Rubber Company
5.01% due 12/01/2009 (b)	$	400,000	$	398,500
7.857% due 08/15/2011		1,275,000		1,268,625
				3,233,375
Tobacco - 0.48%
Reynolds American, Inc.
6.50% due 07/15/2010		250,000		257,571
7.625% due 06/01/2016		3,260,000		3,439,407
				3,696,978
Transportation - 1.42%
Gulfmark Offshore, Inc.
7.75% due 07/15/2014		3,225,000		3,063,750
Overseas Shipholding Group, Inc.
7.50% due 02/15/2024		3,745,000		2,996,000
RailAmerica, Inc.
9.25% due 07/01/2017 (f)		3,325,000		3,437,219
Trailer Bridge, Inc.
9.25% due 11/15/2011		1,750,000		1,566,250
				11,063,219
TOTAL CORPORATE BONDS (Cost $584,764,462)			$	582,384,657
COLLATERALIZED MORTGAGE
OBLIGATIONS - 0.14%
DB Master Finance LLC, Series 2006-1, Class-M1
8.285% due 06/20/2031 (f)		1,250,000		1,094,537
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $1,249,977)			$	1,094,537
COMMON STOCKS - 0.02%
Leisure Time - 0.02%
Tropicana Las Vegas Resort & Casino LLC *		7,500		125,003
TOTAL COMMON STOCKS (Cost $750,000)			$	125,003
PREFERRED STOCKS - 0.06%
Financial Services - 0.04%
Preferred Blocker, Inc., 7.00% (f)		719		334,492
Leisure Time - 0.02%
Tropicana Las Vegas Resort & Casino LLC *		1,270		127,000
TOTAL PREFERRED STOCKS (Cost $270,475)			$	461,492
TERM LOANS - 18.09%
Advertising - 0.06%
Getty Images, Inc.
6.250% due 07/02/2015 (b)		441,563		443,439
Agriculture - 0.03%
WM Bolthouse Farm, Inc.
2.563% d1ue 06/30/2012 (b)		223,585		215,759
Apparel & Textiles - 0.05%
Iconix Brand Group, Inc.
2.520% due 11/07/2013 (b)		425,095		403,840
Auto Parts - 1.09%
Allison Transmission, Inc., Tranche B
3.030% due 08/07/2014 (b)		3,343,868		2,854,828
Federal Mogul Corp., Tranche B
2.217%1 due 12/27/2014 (b)	$	2,842,382	$	2,153,104
Federal Mogul Corp., Tranche C
2.216% due 12/27/2015 (b)		2,756,539		2,088,078
Pep Boys - Manny, Moe & Jack
2.670% due 01/31/2013 (b)		235,952		211,177
Tire Rack Holdings, Inc., Tranche B
2.020% due 06/24/2012 (b)		1,250,084		1,127,160
				8,434,347
Automobiles - 0.83%
Ford Motor Company, Tranche B
3.495% due 11/29/2013 (b)		7,444,325		6,450,508
Broadcasting - 0.19%
Barrington Broadcasting Company
4.720% due 08/11/2013 (b)		1,226,906		751,480
Citadel Broadcasting Corp.
2.341% due 06/12/2014 (b)		1,250,000		707,500
				1,458,980
Business Services - 0.65%
Acosta, Inc.
2.540% due 07/28/2013 (b)		765,332		724,196
Coinmach Laundry Corp.
3.430% due 12/19/2012 (b)		987,469		839,348
First Data Corp., Tranche B2
3.017% due 09/24/2014 (b)		2,845,558		2,367,741
Reynolds & Reynolds Company, Inc.
2.261% due 10/24/2012 (b)		154,988		134,258
SunGard Data Systems, Inc., Tranche B1
2.026% due 01/31/2013 (b)		1,089,653		1,020,460
				5,086,003
Cable & Television - 0.95%
Charter Communications Operating LLC, Tranche 3
6.750% due 03/01/2014 ^ (b)		1,750,000		1,477,656
Charter Communications Operating LLC, Tranche B
6.250% due 03/06/2014 ^ (b)		738,750		685,652
Gray Television, Inc.
3.780% due 12/31/2014 (b)		4,900,515		3,534,496
Local TV Finance LLC
2.270% due 05/07/2013 (b)		2,431,614		1,661,603
				7,359,407
Cellular Communications - 0.19%
Crown Castle International Corp.
7.761% due 03/05/2014 (b)		1,592,732		1,509,613
Chemicals - 0.72%
Celanese Holdings LLC, Letter of Credit
2.345% due 04/02/2014 (b)		2,562,620		2,383,236
Celanese Holdings LLC, Tranche B
2.806% due 04/02/2014 (b)		166,667		158,776
Huntsman International LLC
2.011% due 04/19/2014 (b)		3,252,034		3,029,813
				5,571,825
Computer Services - 0.17%
Affiliated Computer Services, Inc.
2.263% due 03/29/2013 (b)		1,332,434		1,302,216

The accompanying notes are an integral part of the financial statements.

363

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)

	Shares or Principal Amount		Value
TERM LOANS (continued)
Containers & Glass - 0.09%
Graham Packaging Company
2.563% due 10/07/2011 (b)	$	748,087	$	727,514
Crude Petroleum & Natural Gas - 0.43%
Coffeyville Resources, Inc., Letter of Credit
8.750% due 12/28/2010 (b)		618,259		604,348
Coffeyville Resources, Inc., Tranche D
8.750% due 12/28/2013 (b)		2,772,680		2,717,226
				3,321,574
Distribution/Wholesale - 0.09%
Adesa, Inc.
0.00% due 10/21/2013 (b)(m)		750,000		704,063
Educational Services - 0.21%
Education Management Corp., Tranche C
2.375% due 05/29/2011 (b)		1,691,953		1,617,225
Electrical Utilities - 2.04%
Calpine Corp.
3.475% due 03/29/2014 (b)		5,124,489		4,702,518
NSG Holdings
2.129% due 06/15/2014 (b)		144,496		133,298
NSG Holdings, Letter of Credit
2.129% due 06/15/2014 (b)		24,169		22,296
Texas Competitive Electric Holdings Company LLC
3.776% due 10/10/2014 (b)		1,000,000		752,660
Texas Competitive Electric Holdings Company
LLC, Tranche B3
3.761% due 10/10/2014 (b)		13,584,525		10,280,578
				15,891,350
Energy - 1.18%
Covanta Energy Corp., Letter of Credit
1.995% due 02/02/2014 (b)		1,013,742		969,814
Covanta Energy Corp., Tranche B
1.813% due 02/02/2014 (b)		2,012,833		1,925,611
Longview Power LLC, Letter of Credit
2.875% due 02/28/2013 (b)		166,667		135,833
Longview Power LLC, Tranche B
2.938% due 02/28/2014 (b)		500,000		407,500
Longview Power LLC, Tranche Delayed Draw
2.938% due 02/28/2014 (b)		583,333		475,417
NRG Energy, Inc.
2.252% due 02/01/2013 (b)		1,366,771		1,288,958
NRG Energy, Inc., Tranche L
2.348% due 02/01/2013 (b)		732,624		690,915
TPF Generation Holdings LLC
2.598% due 12/15/2011 (b)		90,298		85,364
TPF Generation Holdings LLC, Letter of Credit
2.598% due 12/15/2013 (b)		288,051		272,311
TPF Generation Holdings LLC, Tranche 2
4.511% due 12/15/2014 (b)		2,550,000		2,144,124
TPF Generation Holdings LLC, Tranche B
2.261% due 12/15/2013 (b)		820,094		775,281
				9,171,128
Financial Services - 1.10%
Emdeon Business Services LLC, Tranche 1B
2.461% due 11/16/2013 (b)		457,036		440,469
Emdeon Business Services LLC, Tranche 2
5.463% due 05/16/2014 (b)		2,700,000		2,544,750
Linsco/Private Ledger Corp., Tranche B
2.175% due 06/27/2013 (b)		2,339,211		2,154,023
Nuveen Investments, Inc.
3.386% due 11/13/2014 (b)		1,092,845		887,026
TD Ameritrade Holding Corp.
1.770% due 12/31/2012 (b)		1,000,000		974,750
VNU Nielsen Financial LLC
2.276%1 due 08/09/2013 (b)		1,656,725		1,527,500
				8,528,518
Food & Beverages - 0.42%
Dole Foods Company, Tranche B
8.000% due 04/12/2013 (b)		619,549		623,518
Dole Foods Company, Tranche C
8.000% due 04/12/2013 (b)		2,308,495		2,323,283
Dole Foods, Letter of Credit
7.366% due 04/12/2013 (b)		354,415		356,685
				3,303,486
Gas & Pipeline Utilities - 0.38%
Dynegy Holdings, Inc.
4.020% due 04/02/2013 (b)		2,914,662		2,800,990
Dynegy Holdings, Inc., Tranche B
4.020% due 03/31/2013 (b)		134,691		129,438
				2,930,428
Healthcare Products - 0.42%
AGA Medical Corp., Tranche B
2.313% due 04/28/2013 (b)		3,850,000		3,253,250
Healthcare Services - 1.49%
Carestream Health, Inc., Tranche B
2.261% due 04/30/2013 (b)		646,077		597,945
Community Health Systems, Inc., Tranche B
2.612% due 06/30/2014 (b)		2,716,388		2,530,486
Community Health Systems, Inc., Tranche Delayed
Draw
2.511% due 06/30/2014 (b)		138,578		129,094
HCA, Inc., Tranche A
2.0975% due 11/18/2012 (b)		4,548,467		4,246,499
Health Management Associates, Inc.
2.348% due 02/28/2014 (b)		1,113,695		1,043,742
Healthsouth Corp., Tranche B
2.530% due 03/10/2013 (b)		815,449		788,656
Rural/Metro Operating Company, LLC
3.776% due 03/04/2011 (b)		165,778		162,462
3.790% due 03/04/2011 (b)		113,039		110,778
Sun Healthcare Group, Inc.
2.683% due 04/12/2014 (b)		593,167		538,299
Sun Healthcare Group, Inc., Letter of Credit
2.598% due 04/12/2014 (b)		124,251		112,758
United Surgical Partners International, Inc.
0.00% due 04/19/2014 (m)		171,903		159,010
0.00% due 04/19/2014 (m)		1,292,600		1,195,655
				11,615,384
Insurance - 0.29%
AmWINS Group, Inc., First Lien
2.981% due 06/07/2013 (b)		2,236,804		1,487,474

The accompanying notes are an integral part of the financial statements.

364

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. High Yield Bond Fund (continued)

	Shares or Principal Amount		Value
TERM LOANS (continued)
Insurance (continued)
AmWINS Group, Inc., Second Lien
6.110% due 06/07/2014 (b)	$	1,950,000	$	780,000
				2,267,474
Internet Service Provider - 0.26%
Web Services Company LLC
7.000% due 08/04/2014 (b)		2,034,625		2,014,279
Leisure Time - 2.04%
CCM Merger, Inc.
8.50% due 07/21/2012 (b)		2,870,812		2,679,424
Greektown Casino LLC, Tranche B
5.50% due 12/03/2012 ^ (b)		1,600,000		1,172,000
Greektown Holdings, LLC
5.50% due 03/23/2014 ^ (b)		758,453		555,567
16.75% due 09/09/2009 ^ (b)		3,137,655		3,145,499
Greenwood Racing
2.520% due 11/14/2011 (b)		969,908		945,660
HMSC Corp.
5.761% due 04/03/2014 (b)		550,000		192,500
HMSC Corp., First Lien
2.511% due 04/03/2014 (b)		394,950		254,742
Live Nation Worldwide
3.713% due 12/21/2013 (b)		458,134		421,483
National Cinemedia LLC
2.380% due 02/13/2015 (b)		1,112,000		1,041,388
Penn National Gaming, Inc.
2.026% due 05/26/2012 (b)		4,823,055		4,687,406
Regal Cinemas Corp.
4.348% due 11/10/2010 (b)		189,897		188,236
Riviera Holding Corp.
7.36% due 06/08/2014 (b)		1,250,000		606,250
				15,890,155
Machinery-Electrical - 0.04%
Alliance Laundry Systems
3.023% due 01/27/2012 (b)		360,000		345,150
Manufacturing - 0.11%
Rexnord Holdings, Inc.
7.668% due 02/21/2013 (b)		1,563,584		820,881
Paper - 0.66%
Georgia-Pacific Corp., Tranche B
2.614% due 12/23/2012 (b)		3,487,131		3,368,817
Georgia-Pacific Corp., Tranche B2
2.369% due 12/22/2012 (b)		1,847,766		1,785,073
				5,153,890
Real Estate - 0.52%
Capital Automotive LP
2.04% due 12/16/2010 (b)		4,869,789		4,054,100
Software - 0.12%
Vertafore, Inc.
2.893% due 03/15/2012 (b)		997,455		942,595
Telecommunications Equipment &
Services - 0.68%
Intelsat Corp., Term Loan B2A
2.776% due 01/03/2014 (b)		165,425		156,844
Intelsat Corp., Term Loan B2B
2.776% due 01/03/2014 (b)		165,374		156,797
Intelsat Corp., Term Loan B2C
2.776% due 01/03/2014 (b)		165,374		156,796
Intelsat, Ltd., Tranche B
2.776% due 07/28/2011 (b)		3,003,062		2,848,404
Level 3 Communications, Inc.
2.691% due 03/01/2014 (b)		2,250,000		1,929,778
				5,248,619
Tires & Rubber - 0.59%
Goodyear Tire & Rubber Company, Tranche 2
2.020% due 04/30/2014 (b)		4,950,000		4,566,375
TOTAL TERM LOANS (Cost $142,006,486)			$	140,603,375
REPURCHASE AGREEMENTS - 6.62%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $51,469,100 on 09/01/2009, collateralized by $52,110,000 Federal Home Loan Bank, 0.93% due 03/30/2010 (valued at $52,500,825, including interest)	$	51,469,000	$	51,469,000
TOTAL REPURCHASE AGREEMENTS (Cost $51,469,000)			$	51,469,000
Total Investments (U.S. High Yield Bond Fund) (Cost $780,510,400) - 99.87%			$	776,138,064
Other assets and liabilities, net - 0.13%				1,047,422
TOTAL NET ASSETS - 100.00%			$	777,185,486

U.S. Multi Sector Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 95.05%
Aerospace - 0.77%
General Dynamics Corp.		51,300	$	3,036,447
Goodrich Corp.		3,000		165,480
Rockwell Collins, Inc.		1,700		78,268
United Technologies Corp.		57,900		3,436,944
				6,717,139
Agriculture - 0.06%
Archer-Daniels-Midland Company		18,800		542,004
Air Travel - 0.01%
Southwest Airlines Company		14,100		115,338
Apparel & Textiles - 0.35%
Coach, Inc.		88,200		2,495,178
NIKE, Inc., Class B		3,400		188,326
Polo Ralph Lauren Corp., Class A		5,300		351,814
				3,035,318
Auto Parts - 0.33%
Advance Auto Parts, Inc.		8,200		346,860
AutoZone, Inc. *		9,560		1,407,710

The accompanying notes are an integral part of the financial statements.

365

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Multi Sector Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Auto Parts (continued)
Genuine Parts Company		5,700	$	211,128
Johnson Controls, Inc.		18,500		458,245
O’Reilly Automotive, Inc. *		12,100		463,188
				2,887,131
Auto Services - 0.05%
AutoNation, Inc. * (a)		15,800		299,884
Copart, Inc. *		3,600		127,224
				427,108
Automobiles - 0.09%
Ford Motor Company *		108,200		822,320
Banking - 0.64%
Bank of America Corp.		194,700		3,424,773
BB&T Corp.		42,300		1,181,862
City National Corp. (a)		3,000		118,500
Comerica, Inc.		8,500		226,695
Cullen Frost Bankers, Inc.		3,100		152,768
First Horizon National Corp. *		11,378		152,238
KeyCorp		4,400		29,304
U.S. Bancorp		13,300		300,846
				5,586,986
Biotechnology - 2.74%
Amgen, Inc. *		366,100		21,870,814
Biogen Idec, Inc. *		20,500		1,029,305
Cephalon, Inc. * (a)		4,900		278,957
Genzyme Corp. *		5,800		323,118
Life Technologies Corp. *		1,800		80,154
Myriad Genetics, Inc. *		8,700		265,959
				23,848,307
Broadcasting - 0.04%
Discovery Communications, Inc., Series A *		4,100		106,272
Liberty Media Corp. - Entertainment, Series A *		8,200		228,698
				334,970
Building Materials & Construction - 0.01%
Masco Corp.		7,300		105,704
Business Services - 0.48%
Affiliated Computer Services, Inc., Class A *		5,700		255,360
Alliance Data Systems Corp. * (a)		5,800		322,248
Automatic Data Processing, Inc.		15,300		586,755
Computer Sciences Corp. *		6,100		297,985
Dun & Bradstreet Corp.		2,300		167,992
FactSet Research Systems, Inc. (a)		1,100		60,544
Fiserv, Inc. *		5,900		284,675
Global Payments, Inc.		17,900		759,676
H & R Block, Inc.		30,700		530,496
Iron Mountain, Inc. *		5,300		155,237
Manpower, Inc.		1,900		98,230
Moody’s Corp.		13,800		375,912
URS Corp. *		5,800		250,734
				4,145,844
Cable & Television - 0.29%
Cablevision Systems Corp., Class A		7,100		158,614
Comcast Corp., Class A		92,200		1,412,504
DIRECTV Group, Inc. * (a)		19,900		492,724
Time Warner Cable, Inc. *		7,912		292,111
Viacom, Inc., Class B *		6,800		170,272
				2,526,225
Cellular Communications - 0.09%
MetroPCS Communications, Inc. *		6,200		49,352
Motorola, Inc.		90,100		646,918
NII Holdings, Inc. *		3,500		82,985
				779,255
Chemicals - 0.10%
Dow Chemical Company		35,100		747,279
The Scotts Miracle-Gro Company, Class A		3,100		126,139
				873,418
Colleges & Universities - 0.02%
Career Education Corp. *		5,800		137,750
Computer Services - 0.01%
NetApp, Inc. *		3,700		84,175
Computers & Business Equipment - 5.13%
Apple, Inc. *		18,930		3,184,215
Brocade Communications Systems, Inc. *		9,800		70,854
Cisco Systems, Inc. *		1,119,600		24,183,360
Cognizant Technology Solutions Corp., Class A *		7,800		272,064
Dell, Inc. *		126,600		2,004,078
EMC Corp. *		42,500		675,750
Hewlett-Packard Company		36,900		1,656,441
International Business Machines Corp.		99,100		11,698,755
Juniper Networks, Inc. *		6,200		143,034
SanDisk Corp. *		14,300		253,110
Western Digital Corp. *		13,700		469,636
				44,611,297
Construction Materials - 0.16%
Martin Marietta Materials, Inc.		1,700		148,886
The Sherwin-Williams Company		17,500		1,053,500
Vulcan Materials Company		3,200		160,128
				1,362,514
Containers & Glass - 0.03%
Pactiv Corp. *		10,900		270,865
Cosmetics & Toiletries - 3.99%
Avon Products, Inc.		45,000		1,434,150
Colgate-Palmolive Company		146,200		10,628,740
Estee Lauder Companies, Inc., Class A		16,200		580,770
Kimberly-Clark Corp.		71,800		4,341,028
Procter & Gamble Company		327,200		17,704,792
				34,689,480
Crude Petroleum & Natural Gas - 0.35%
Apache Corp.		2,280		193,686
Cimarex Energy Company		8,400		327,936
Noble Energy, Inc.		4,600		278,116
Occidental Petroleum Corp.		13,500		986,850
Patterson-UTI Energy, Inc.		11,700		155,493
Plains Exploration & Production Company *		4,400		115,500
Southwestern Energy Company *		14,100		519,726
Sunoco, Inc.		12,300		330,870

The accompanying notes are an integral part of the financial statements.

366

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Multi Sector Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Crude Petroleum & Natural Gas
(continued)
XTO Energy, Inc.		4,400	$	169,840
				3,078,017
Drugs & Health Care - 0.02%
Dendreon Corp. *		6,200		144,894
Educational Services - 0.81%
Apollo Group, Inc., Class A *		73,000		4,731,860
ITT Educational Services, Inc. *		20,700		2,173,293
Strayer Education, Inc.		760		160,436
				7,065,589
Electrical Equipment - 0.02%
FLIR Systems, Inc. *		6,600		151,932
Electrical Utilities - 0.31%
CMS Energy Corp.		11,800		158,238
Consolidated Edison, Inc.		14,800		594,812
FPL Group, Inc.		4,600		258,428
PG&E Corp.		26,300		1,067,517
Pinnacle West Capital Corp.		4,900		161,259
Southern Company		13,900		433,680
				2,673,934
Electronics - 0.09%
Amphenol Corp., Class A		3,200		111,872
Arrow Electronics, Inc. *		5,600		154,784
Avnet, Inc. *		7,100		189,215
L-3 Communications Holdings, Inc.		4,700		349,680
				805,551
Energy - 0.01%
Progress Energy, Inc.		2,900		114,637
Financial Services - 1.16%
Affiliated Managers Group, Inc. *		1,200		78,396
BlackRock, Inc.		420		83,819
Capital One Financial Corp.		4,100		152,889
Citigroup, Inc.		103,800		519,000
CME Group, Inc.		1,240		360,890
Fidelity National Financial, Inc., Class A		16,500		247,830
Fidelity National Information Services, Inc.		7,100		174,376
Goldman Sachs Group, Inc.		24,530		4,058,734
IntercontinentalExchange, Inc. *		2,800		262,640
JPMorgan Chase & Company		11,700		508,482
Morgan Stanley		22,600		654,496
People’s United Financial, Inc.		13,500		216,810
SEI Investments Company		19,000		350,360
State Street Corp.		1,600		83,968
TD Ameritrade Holding Corp. *		4,400		84,656
Wells Fargo & Company		82,500		2,270,400
				10,107,746
Food & Beverages - 7.41%
Campbell Soup Company		22,300		699,328
Coca-Cola Enterprises, Inc.		21,600		436,536
Dean Foods Company *		6,600		119,724
General Mills, Inc.		44,600		2,663,958
Green Mountain Coffee Roasters, Inc. * (a)		1,200		72,228
H.J. Heinz Company		14,300		550,550
Hansen Natural Corp. *		7,700		251,482
Hershey Company		28,100		1,102,363
J.M. Smucker Company		4,000		209,080
Kellogg Company		35,700		1,681,113
Kraft Foods, Inc., Class A		44,176		1,252,390
Pepsi Bottling Group, Inc.		8,800		314,424
PepsiCo, Inc.		380,100		21,540,267
Ralcorp Holdings, Inc. *		1,800		112,914
Sysco Corp.		11,700		298,233
The Coca-Cola Company		676,500		32,992,905
Tyson Foods, Inc., Class A		17,100		205,029
				64,502,524
Furniture & Fixtures - 0.03%
Leggett & Platt, Inc.		12,400		226,300
Healthcare Products - 5.97%
Baxter International, Inc.		13,300		757,036
C.R. Bard, Inc.		3,300		265,914
Edwards Lifesciences Corp. *		3,300		204,204
Gen-Probe, Inc. *		2,900		111,795
Inverness Medical Innovations, Inc. *		2,400		85,440
Johnson & Johnson		665,600		40,228,864
Medtronic, Inc.		183,400		7,024,220
ResMed, Inc. *		3,700		169,867
Stryker Corp.		11,300		468,498
Zimmer Holdings, Inc. *		55,100		2,608,985
				51,924,823
Healthcare Services - 4.02%
Cardinal Health, Inc.		29,800		1,030,484
Cerner Corp. *		4,700		290,037
Covance, Inc. *		2,600		138,060
Coventry Health Care, Inc. *		22,100		482,443
DaVita, Inc. *		3,700		191,327
Express Scripts, Inc. *		19,900		1,437,178
Humana, Inc. *		3,000		107,100
McKesson Corp.		37,700		2,143,622
Medco Health Solutions, Inc. *		8,500		469,370
Omnicare, Inc.		10,800		247,212
Quest Diagnostics, Inc.		14,100		760,836
UnitedHealth Group, Inc.		732,000		20,496,000
WellPoint, Inc. *		135,000		7,134,750
				34,928,419
Holdings Companies/Conglomerates - 0.02%
Textron, Inc.		9,800		150,528
Homebuilders - 0.05%
NVR, Inc. *		247		166,787
Pulte Homes, Inc.		16,400		209,592
Toll Brothers, Inc. *		3,600		81,864
				458,243
Hotels & Restaurants - 0.78%
Darden Restaurants, Inc.		6,500		214,045
Marriott International, Inc., Class A		7,227		172,732
McDonald’s Corp.		97,500		5,483,400
Starbucks Corp. *		39,500		750,105

The accompanying notes are an integral part of the financial statements.

367

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Multi Sector Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Hotels & Restaurants (continued)
Yum! Brands, Inc.		4,100	$	140,425
				6,760,707
Household Products - 0.22%
Church & Dwight, Inc.		2,400		137,112
Clorox Company		23,100		1,364,979
Energizer Holdings, Inc. *		6,000		392,580
				1,894,671
Industrial Machinery - 0.06%
Parker-Hannifin Corp.		7,500		364,950
W.W. Grainger, Inc.		1,400		122,458
				487,408
Industrials - 0.21%
Fastenal Company (a)		11,100		401,820
General Electric Company		104,800		1,456,720
				1,858,540
Insurance - 1.50%
AFLAC, Inc.		9,400		381,828
Allstate Corp.		50,000		1,469,500
Aon Corp.		2,500		104,400
Arthur J. Gallagher & Company		5,800		137,866
Assurant, Inc.		6,200		185,690
Brown & Brown, Inc.		12,600		250,362
Chubb Corp.		34,000		1,679,260
CIGNA Corp.		10,900		320,787
CNA Financial Corp. *		9,000		220,230
First American Corp.		5,100		160,752
Hartford Financial Services Group, Inc.		11,000		260,920
HCC Insurance Holdings, Inc.		10,200		269,688
Markel Corp. *		640		210,471
Marsh & McLennan Companies, Inc.		34,100		802,714
MetLife, Inc.		16,000		604,160
Old Republic International Corp.		14,675		174,779
Progressive Corp. *		27,800		459,256
Prudential Financial, Inc.		5,500		278,190
The Travelers Companies, Inc.		80,400		4,053,768
Torchmark Corp.		6,600		281,226
Unum Group		16,700		376,251
W.R. Berkley Corp.		13,700		350,035
				13,032,133
International Oil - 9.63%
Anadarko Petroleum Corp.		5,800		306,646
Chevron Corp.		448,100		31,340,114
ConocoPhillips Company		131,500		5,921,445
Exxon Mobil Corp.		661,900		45,770,385
Nabors Industries, Ltd. *		23,900		422,552
				83,761,142
Internet Content - 2.53%
Google, Inc., Class A *		47,500		21,929,325
Yahoo!, Inc. *		5,700		83,277
				22,012,602
Internet Retail - 0.77%
Amazon.com, Inc. *		24,500		1,989,155
eBay, Inc. *		192,300		4,257,522
Expedia, Inc. *		3,900		89,895
Netflix, Inc. * (a)		4,400		192,104
Priceline.com, Inc. *		1,270		195,555
				6,724,231
Internet Service Provider - 0.01%
Equinix, Inc. *		900		75,834
Internet Software - 0.15%
Akamai Technologies, Inc. *		5,000		88,200
McAfee, Inc. *		13,900		552,942
Symantec Corp. *		42,000		635,040
				1,276,182
Leisure Time - 0.02%
International Game Technology		4,000		83,680
Penn National Gaming, Inc. *		3,700		108,077
				191,757
Liquor - 0.02%
Constellation Brands, Inc., Class A *		9,900		146,421
Manufacturing - 0.79%
3M Company		87,800		6,330,380
Danaher Corp.		4,100		248,911
Harley-Davidson, Inc.		13,500		323,730
				6,903,021
Metal & Metal Products - 0.09%
Reliance Steel & Aluminum Company		2,600		96,044
Southern Copper Corp. (a)		23,000		649,980
				746,024
Mining - 0.04%
Freeport-McMoRan Copper & Gold, Inc., Class B		5,800		365,284
Multimedia - 0.02%
Time Warner, Inc.		6,700		186,997
Petroleum Services - 0.17%
Baker Hughes, Inc.		3,900		134,355
BJ Services Company		18,500		297,110
ENSCO International, Inc.		7,100		261,990
Valero Energy Corp.		43,500		815,190
				1,508,645
Pharmaceuticals - 13.72%
Abbott Laboratories		247,900		11,212,517
Allergan, Inc.		10,300		575,976
AmerisourceBergen Corp.		56,800		1,210,408
Bristol-Myers Squibb Company		269,400		5,961,822
Eli Lilly & Company (a)		347,900		11,640,734
Endo Pharmaceutical Holdings, Inc. *		7,900		178,303
Forest Laboratories, Inc. *		108,200		3,167,014
Gilead Sciences, Inc. *		65,800		2,964,948
King Pharmaceuticals, Inc. *		12,000		124,560
Merck & Company, Inc. (a)		470,900		15,271,287
Mylan, Inc. * (a)		13,500		198,045
Pfizer, Inc.		2,999,100		50,084,970
Schering-Plough Corp.		53,100		1,496,358
Vertex Pharmaceuticals, Inc. *		12,200		456,402

The accompanying notes are an integral part of the financial statements.

368

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Multi Sector Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Pharmaceuticals (continued)
Watson Pharmaceuticals, Inc. *		3,900	$	137,631
Wyeth		306,600		14,670,810
				119,351,785
Publishing - 0.02%
McGraw-Hill Companies, Inc.		4,400		147,884
Railroads & Equipment - 0.08%
Norfolk Southern Corp.		15,100		692,637
Retail Grocery - 0.12%
SUPERVALU, Inc.		8,990		129,006
The Kroger Company		34,900		753,491
Whole Foods Market, Inc. * (a)		6,600		191,928
				1,074,425
Retail Trade - 9.14%
Abercrombie & Fitch Company, Class A (a)		8,700		280,923
American Eagle Outfitters, Inc.		15,500		209,250
Bed Bath & Beyond, Inc. * (a)		41,400		1,510,272
Best Buy Company, Inc.		28,200		1,023,096
CarMax, Inc. *		4,900		84,819
Dollar Tree, Inc. *		13,200		659,208
Family Dollar Stores, Inc.		16,900		511,732
Home Depot, Inc. (a)		442,500		12,075,825
J.C. Penney Company, Inc.		2,600		78,104
Kohl’s Corp. *		35,000		1,805,650
Limited Brands, Inc.		17,900		267,068
Lowe’s Companies, Inc.		168,800		3,629,200
Nordstrom, Inc. (a)		3,000		84,120
PetSmart, Inc.		12,600		263,466
Ross Stores, Inc.		13,600		634,304
Sears Holdings Corp. * (a)		2,400		152,280
Staples, Inc.		31,400		678,554
Target Corp.		33,400		1,569,800
The Gap, Inc.		20,200		396,930
TJX Companies, Inc.		6,400		230,080
Urban Outfitters, Inc. *		8,100		230,283
Walgreen Company		345,000		11,688,600
Wal-Mart Stores, Inc.		814,900		41,453,963
				79,517,527
Sanitary Services - 0.06%
Aqua America, Inc.		6,500		109,525
Waste Management, Inc.		14,100		422,013
				531,538
Semiconductors - 0.26%
Altera Corp.		15,700		301,597
Broadcom Corp., Class A *		20,400		580,380
Cree, Inc. *		4,700		173,148
NVIDIA Corp. *		19,000		275,880
Texas Instruments, Inc.		21,500		528,685
Xilinx, Inc.		18,300		406,992
				2,266,682
Software - 10.14%
Adobe Systems, Inc. *		4,900		153,958
BMC Software, Inc. *		7,400		263,810
Citrix Systems, Inc. *		15,500		553,040
Intuit, Inc. *		9,100	$	252,707
Microsoft Corp.		1,834,100		45,210,565
Oracle Corp.		1,897,100		41,489,577
Red Hat, Inc. *		7,500		172,200
VMware, Inc., Class A *		4,300		152,349
				88,248,206
Steel - 0.06%
Nucor Corp.		7,500		334,050
Steel Dynamics, Inc.		8,800		145,640
				479,690
Telecommunications Equipment &
Services - 3.32%
Corning, Inc.		35,000		527,800
QUALCOMM, Inc.		610,000		28,316,200
				28,844,000
Telephone - 1.85%
AT&T, Inc.		291,105		7,583,285
CenturyTel, Inc.		17,500		564,025
Frontier Communications Corp.		6,300		44,793
Verizon Communications, Inc.		255,300		7,924,512
				16,116,615
Tobacco - 3.25%
Altria Group, Inc.		436,200		7,973,736
Lorillard, Inc.		7,200		523,944
Philip Morris International, Inc.		433,300		19,806,143
				28,303,823
Toys, Amusements & Sporting Goods - 0.04%
Hasbro, Inc.		11,500		326,485
Transportation - 0.08%
C.H. Robinson Worldwide, Inc.		13,100		737,006
Trucking & Freight - 0.24%
FedEx Corp.		3,900		267,969
United Parcel Service, Inc., Class B (a)		33,500		1,790,910
				2,058,879
TOTAL COMMON STOCKS (Cost $800,572,543)			$	826,865,066
SHORT TERM INVESTMENTS - 3.96%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		3,442,499	$	34,463,890
TOTAL SHORT TERM INVESTMENTS (Cost $34,456,624)			$	34,463,890

The accompanying notes are an integral part of the financial statements.

369

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

U.S. Multi Sector Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 4.38%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $38,096,074 on 09/01/2009, collateralized by $38,005,000 Federal National Mortgage Association, 5.55% due 02/16/2017 (valued at $38,860,113, including interest)	$	38,096,000	$	38,096,000
(TOTAL REPURCHASE AGREEMENTS Cost $38,096,000)			$	38,096,000
(Total Investments (U.S. Multi Sector Fund) Cost $873,125,167) - 103.39%			$	899,424,956
Other assets and liabilities, net - (3.39)%				(29,519,394	)
TOTAL NET ASSETS - 100.00%			$	869,905,562

Value Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 96.20%
Aerospace - 3.47%
Goodrich Corp.		76,870	$	4,240,149
Auto Parts - 4.46%
Autoliv, Inc.		135,600		4,348,692
O’Reilly Automotive, Inc. *		28,500		1,090,980
				5,439,672
Banking - 5.71%
BB&T Corp.		62,800		1,754,632
Comerica, Inc.		46,600		1,242,822
KeyCorp		73,700		490,842
Northern Trust Corp.		59,639		3,486,496
				6,974,792
Business Services - 5.88%
Perot Systems Corp., Class A *		283,610		4,722,107
Robert Half International, Inc. (a)		93,600		2,460,744
				7,182,851
Chemicals - 3.55%
Valspar Corp.		161,680		4,329,790
Computers & Business Equipment - 3.00%
Diebold, Inc.		121,410		3,662,940
Containers & Glass - 1.83%
Sonoco Products Company		86,100		2,233,434
Cosmetics & Toiletries - 1.43%
Estee Lauder Companies, Inc., Class A		48,810		1,749,838
Crude Petroleum & Natural Gas - 1.84%
EOG Resources, Inc.		14,600		1,051,200
Hess Corp.		23,580		1,192,912
				2,244,112
Domestic Oil - 0.45%
Denbury Resources, Inc. *		36,400		554,008
Electrical Utilities - 6.15%
Edison International		84,800		2,833,168
Great Plains Energy, Inc.		62,200		1,089,744
Wisconsin Energy Corp.		78,794		3,582,763
				7,505,675
Electronics - 7.29%
Agilent Technologies, Inc. *		104,800		2,691,264
Flextronics International, Ltd. *		405,431		2,404,206
Zebra Technologies Corp., Class A *		152,330		3,806,727
				8,902,197
Financial Services - 5.93%
Charles Schwab Corp.		136,200		2,459,772
Fidelity National Information Services, Inc. (a)		131,900		3,239,464
Invesco, Ltd.		74,292		1,541,559
				7,240,795
Food & Beverages - 4.19%
ConAgra Foods, Inc.		131,630		2,702,364
Sysco Corp.		94,800		2,416,452
				5,118,816
Gas & Pipeline Utilities - 2.64%
El Paso Corp.		348,560		3,217,209
Healthcare Products - 4.21%
Beckman Coulter, Inc.		75,890		5,139,271
Healthcare Services - 5.70%
Brookdale Senior Living, Inc.		214,100		3,402,049
Healthsouth Corp. * (a)		227,880		3,557,207
				6,959,256
Household Appliances - 0.41%
Whirlpool Corp. (a)		7,800		500,838
Household Products - 1.45%
Newell Rubbermaid, Inc.		127,360		1,772,851
Insurance - 10.45%
ACE, Ltd.		71,465		3,729,044
Aspen Insurance Holdings, Ltd.		86,767		2,203,882
Marsh & McLennan Companies, Inc.		135,499		3,189,646
Willis Group Holdings, Ltd.		140,755		3,630,071
				12,752,643
Manufacturing - 9.26%
Harley-Davidson, Inc. (a)		140,374		3,366,169
Pentair, Inc.		168,650		4,777,854
Snap-on, Inc.		84,800		3,164,736
				11,308,759
Office Furnishings & Supplies - 3.09%
Avery Dennison Corp.		122,200		3,775,980
Petroleum Services - 0.80%
Smith International, Inc.		35,200		970,464
Real Estate - 1.30%
Simon Property Group, Inc., REIT		10,518		669,155
Weingarten Realty Investors, REIT (a)		46,100		915,546
				1,584,701

The accompanying notes are an integral part of the financial statements.

370

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Value Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Software - 1.71%
Teradata Corp. *		77,400	$	2,084,382
TOTAL COMMON STOCKS (Cost $100,799,703)			$	117,445,423
SHORT TERM INVESTMENTS - 10.38%
Federal Home Loan Bank Discount Notes
0.08% due 09/01/2009	$	5,800,000	$	5,800,000
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		686,001		6,867,760
TOTAL SHORT TERM INVESTMENTS (Cost $12,665,545)			$	12,667,760
Total Investments (Value Fund) (Cost $113,465,248) - 106.58%			$	130,113,183
Other assets and liabilities, net - (6.58)%				(8,034,475	)
TOTAL NET ASSETS - 100.00%			$	122,078,708

Value & Restructuring Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 99.18%
Aerospace - 1.88%
United Technologies Corp.		163,010	$	9,676,274
Air Travel - 1.33%
Copa Holdings SA, Class A		163,968		6,848,943
Auto Services - 0.50%
RSC Holdings, Inc. * (a)		355,767		2,572,195
Banking - 1.31%
PNC Financial Services Group, Inc.		157,661		6,714,782
Cellular Communications - 3.95%
America Movil SAB de CV, Series L, ADR		450,225		20,327,659
Chemicals - 4.27%
Celanese Corp., Series A		417,100		10,623,537
Lanxess AG		161,230		4,895,202
PPG Industries, Inc.		116,511		6,454,709
				21,973,448
Coal - 5.84%
Alpha Natural Resources, Inc. *		493,409		15,942,045
CONSOL Energy, Inc.		376,958		14,101,999
				30,044,044
Commercial Services - 0.70%
AerCap Holdings NV *		414,445		3,609,816
Computers & Business Equipment - 3.00%
International Business Machines Corp.		130,442		15,398,678
Cosmetics & Toiletries - 1.88%
Avon Products, Inc. (a)		302,702		9,647,113
Crude Petroleum & Natural Gas - 4.69%
Devon Energy Corp.		201,124		12,344,991
Noble Energy, Inc.		165,839		10,026,626
W&T Offshore, Inc. (a)		174,820		1,727,222
				24,098,839
Diversified Minerals - 1.14%
Vale SA		304,450		5,848,485
Electrical Utilities - 1.70%
Enel SpA		613,744		3,615,589
Entergy Corp.		64,810		5,119,990
				8,735,579
Energy - 0.35%
Rosetta Resources, Inc. * (f)		87,051		1,028,073
Rosetta Resources, Inc. *		64,710		764,225
				1,792,298
Financial Services - 8.45%
Apollo Investment Corp.		318,599		2,950,227
Goldman Sachs Group, Inc.		69,045		11,424,186
Invesco, Ltd.		483,298		10,028,433
JPMorgan Chase & Company		237,774		10,333,658
Morgan Stanley		300,340		8,697,846
				43,434,350
Food & Beverages - 0.96%
Dean Foods Company *		271,995		4,933,989
Vintage Wine Trust, Inc. * (f)		88,261		25,596
				4,959,585
Gas & Pipeline Utilities - 0.64%
El Paso Corp.		358,758		3,311,336
Healthcare Products - 1.80%
Baxter International, Inc.		162,400		9,243,808
Household Appliances - 1.76%
Black & Decker Corp. (a)		205,559		9,069,263
Household Products - 0.84%
Newell Rubbermaid, Inc.		311,134		4,330,985
Industrial Machinery - 1.88%
AGCO Corp. *		309,224		9,660,158
Industrials - 0.83%
Aecom Technology Corp. *		154,713		4,240,683
Insurance - 6.32%
ACE, Ltd.		299,363		15,620,761
Loews Corp.		192,842		6,585,554
MetLife, Inc.		221,592		8,367,314
Tower Group, Inc.		79,119		1,898,065
				32,471,694
International Oil - 9.89%
Anadarko Petroleum Corp.		191,927		10,147,180
ConocoPhillips Company		250,135		11,263,579
Murphy Oil Corp.		81,476		4,644,132
Petroleo Brasileiro SA, ADR (a)		625,445		24,792,640
				50,847,531
Manufacturing - 3.49%
Eaton Corp.		179,155		9,665,412
Tyco International, Ltd.		261,726		8,294,097
				17,959,509
Metal & Metal Products - 2.43%
Southern Copper Corp. (a)		442,309		12,499,652

The accompanying notes are an integral part of the financial statements.

371

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Value & Restructuring Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Mining - 3.13%
Freeport-McMoRan Copper & Gold, Inc., Class B		147,992	$	9,320,536
Grupo Mexico SAB de CV, Series B		4,726,384		6,795,333
				16,115,869
Petroleum Services - 1.38%
PetroHawk Energy Corp. *		330,521		7,116,117
Pharmaceuticals - 3.38%
AmerisourceBergen Corp.		405,489		8,640,971
Bristol-Myers Squibb Company		393,710		8,712,802
				17,353,773
Railroads & Equipment - 3.55%
Union Pacific Corp.		305,542		18,274,467
Real Estate - 0.91%
DiamondRock Hospitality Company, REIT		391,337		2,680,658
Host Hotels & Resorts, Inc., REIT		198,513		1,979,175
				4,659,833
Retail Trade - 1.95%
TJX Companies, Inc.		278,141		9,999,169
Steel - 1.36%
Schnitzer Steel Industries, Inc.		129,849		7,013,145
Telecommunications Equipment &
Services - 2.32%
CommScope, Inc. *		235,226		6,341,693
Nokia Oyj, SADR (a)		398,423		5,581,906
				11,923,599
Telephone - 3.53%
Harris Corp.		448,961		15,592,416
Windstream Corp.		296,509		2,541,082
				18,133,498
Tobacco - 4.50%
Lorillard, Inc.		318,261		23,159,853
Transport-Marine - 0.12%
General Maritime Corp.		76,309		606,657
Trucking & Freight - 1.22%
Ryder Systems, Inc.		164,521		6,251,798
TOTAL COMMON STOCKS (Cost $455,171,596)			$	509,924,485
PREFERRED STOCKS - 0.46%
Chemicals - 0.25%
Celanese Corp., 4.25%		38,949		1,273,243
Financial Services - 0.21%
Wells Fargo & Company, Series L, 7.50%		1,285		1,095,462
TOTAL PREFERRED STOCKS (Cost $1,599,247)			$	2,368,705
SHORT TERM INVESTMENTS - 6.12%
John Hancock Collateral
Investment Trust, 0.3900% (c)(g)		3,142,195	$	31,457,457
TOTAL SHORT TERM INVESTMENTS (Cost $31,449,685)			$	31,457,457
Total Investments (Value & Restructuring Fund) (Cost $488,220,528) - 105.76%			$	543,750,647
Other assets and liabilities, net - (5.76)%				(29,629,879	)
TOTAL NET ASSETS - 100.00%			$	514,120,768

Vista Fund

	Shares or Principal Amount		Value
COMMON STOCKS - 98.03%
Aerospace - 0.54%
BE Aerospace, Inc. *		70,400	$	1,205,952
Apparel & Textiles - 2.25%
Coach, Inc.		55,300		1,564,437
Iconix Brand Group, Inc. *		62,200		1,068,596
Jones Apparel Group, Inc.		110,000		1,714,900
Phillips-Van Heusen Corp.		18,086		683,289
				5,031,222
Auto Parts - 2.39%
Advance Auto Parts, Inc.		25,000		1,057,500
Autoliv, Inc.		67,100		2,151,897
O’Reilly Automotive, Inc. * (a)		28,700		1,098,636
Tenneco, Inc. *		65,500		1,028,350
				5,336,383
Banking - 0.53%
Fifth Third Bancorp		108,000		1,181,520
Biotechnology - 1.92%
Life Technologies Corp. *		96,400		4,292,692
Business Services - 1.62%
Tetra Tech, Inc. *		54,300		1,604,022
URS Corp. *		46,800		2,023,164
				3,627,186
Chemicals - 2.92%
Celanese Corp., Series A		146,200		3,723,714
CF Industries Holdings, Inc.		20,400		1,665,864
The Scotts Miracle-Gro Company, Class A		27,500		1,118,975
				6,508,553
Coal - 1.38%
Walter Energy, Inc.		59,200		3,073,072
Computers & Business Equipment - 3.19%
Seagate Technology		138,300		1,915,455
STEC, Inc. * (a)		50,394		2,042,469
Western Digital Corp. *		92,300		3,164,044
				7,121,968
Construction & Mining Equipment - 1.58%
Bucyrus International, Inc., Class A		57,500		1,716,375

The accompanying notes are an integral part of the financial statements.

372

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Vista Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Construction & Mining Equipment (continued)
Joy Global, Inc.		46,900	$	1,822,065
				3,538,440
Cosmetics & Toiletries - 0.75%
Avon Products, Inc.		52,500		1,673,175
Crude Petroleum & Natural Gas - 1.37%
Southwestern Energy Company *		49,100		1,809,826
Whiting Petroleum Corp. *		25,800		1,252,332
				3,062,158
Electrical Utilities - 1.81%
Quanta Services, Inc. *		182,275		4,031,923
Electronics - 0.71%
AU Optronics Corp., ADR		57,631		568,242
LG Display Company, Ltd., ADR (a)		70,740		1,024,315
				1,592,557
Energy - 1.98%
JA Solar Holdings Company, Ltd. * (a)		159,600		568,176
McDermott International, Inc. *		119,100		2,829,816
Suntech Power Holdings Company, Ltd., ADR * (a)		72,400		1,028,804
				4,426,796
Financial Services - 11.05%
IntercontinentalExchange, Inc. *		23,800		2,232,440
Janus Capital Group, Inc.		404,200		5,141,424
Jefferies Group, Inc. *		204,900		4,847,934
Lazard, Ltd., Class A		117,300		4,559,451
Legg Mason, Inc.		80,500		2,315,180
Morgan Stanley		133,900		3,877,744
Waddell & Reed Financial, Inc., Class A		64,000		1,697,920
				24,672,093
Food & Beverages - 0.47%
Green Mountain Coffee Roasters, Inc. * (a)		17,400		1,047,306
Healthcare Services - 5.25%
Cerner Corp. * (a)		34,200		2,110,482
Covance, Inc. *		42,700		2,267,370
Express Scripts, Inc. *		66,900		4,831,518
Medco Health Solutions, Inc. *		45,700		2,523,554
				11,732,924
Homebuilders - 1.94%
KB Home (a)		138,200		2,516,622
NVR, Inc. *		2,700		1,823,175
				4,339,797
Hotels & Restaurants - 0.62%
Boyd Gaming Corp. *		75,300		774,084
Wynn Resorts, Ltd. * (a)		11,100		600,843
				1,374,927
Industrial Machinery - 1.77%
Cameron International Corp. *		74,500		2,660,395
Flowserve Corp.		14,900		1,285,125
				3,945,520
Industrials - 2.27%
Aecom Technology Corp. *		145,107		3,977,383
Shaw Group, Inc. *		37,100	$	1,088,143
				5,065,526
Internet Service Provider - 1.29%
Equinix, Inc. *		21,200		1,786,312
Netease.com, Inc., ADR * (a)		26,251		1,102,279
				2,888,591
Internet Software - 0.99%
McAfee, Inc. *		27,753		1,104,014
Shanda Interactive Entertainment, Ltd. * (a)		22,603		1,106,643
				2,210,657
Leisure Time - 4.31%
Bally Technologies, Inc. *		29,000		1,172,470
International Game Technology		113,300		2,370,236
Las Vegas Sands Corp. * (a)		119,800		1,708,348
Penn National Gaming, Inc. *		35,500		1,036,955
Perfect World Co, Ltd. *		43,400		1,655,710
WMS Industries, Inc. *		39,600		1,676,268
				9,619,987
Manufacturing - 1.08%
Ingersoll-Rand PLC		78,100		2,412,509
Medical-Hospitals - 1.07%
Health Management Associates, Inc., Class A *		166,500		1,150,515
Tenet Healthcare Corp. *		264,000		1,230,240
				2,380,755
Metal & Metal Products - 2.47%
Crown Holdings, Inc. *		135,601		3,366,973
Precision Castparts Corp. (a)		13,200		1,204,896
Thompson Creek Metals Company, Inc. *		82,700		951,050
				5,522,919
Mining - 1.04%
Freeport-McMoRan Copper & Gold, Inc., Class B		36,800		2,317,664
Oil & Gas Drilling - 1.81%
Atwood Oceanics, Inc. *		83,100		2,366,688
Continental Resources, Inc. * (a)		47,400		1,673,220
				4,039,908
Petroleum Services - 2.39%
Oceaneering International, Inc. *		32,200		1,679,874
PetroHawk Energy Corp. *		170,014		3,660,401
				5,340,275
Pharmaceuticals - 1.08%
Alexion Pharmaceuticals, Inc. *		53,400		2,410,476
Real Estate - 0.50%
E-House China Holdings, Ltd. *		58,900		1,123,223
Retail - 1.21%
Chico’s FAS, Inc. *		212,700		2,707,671
Retail Trade - 7.38%
Aeropostale, Inc. *		61,000		2,388,150
Bed Bath & Beyond, Inc. * (a)		48,700		1,776,576
Dollar Tree, Inc. *		78,600		3,925,284
Family Dollar Stores, Inc.		104,900		3,176,372

The accompanying notes are an integral part of the financial statements.

373

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

Vista Fund (continued)

	Shares or Principal Amount		Value
COMMON STOCKS (continued)
Retail Trade (continued)
Ross Stores, Inc.		75,460	$	3,519,454
TJX Companies, Inc.		47,200		1,696,840
				16,482,676
Semiconductors - 12.28%
Altera Corp.		59,300		1,139,153
ASML Holding NV (a)		144,800		3,977,656
Broadcom Corp., Class A *		81,400		2,315,830
Cypress Semiconductor Corp. *		150,800		1,526,096
Marvell Technology Group, Ltd. *		168,000		2,562,000
NVIDIA Corp. *		123,700		1,796,124
PMC-Sierra, Inc. *		326,800		2,967,344
Rovi Corp. * (a)		128,300		3,905,452
Semtech Corp. *		130,000		2,375,100
Silicon Laboratories, Inc. *		58,800		2,648,352
Teradyne, Inc. * (a)		267,200		2,204,400
				27,417,507
Software - 0.62%
Allscripts-Misys Healthcare Solutions, Inc. *		93,600		1,389,960
Steel - 1.75%
AK Steel Holding Corp.		103,492		2,102,957
Companhia Siderurgica Nacional SA, SADR		69,000		1,800,210
				3,903,167
Telecommunications Equipment &
Services - 7.61%
Alcatel-Lucent, SADR *		332,600		1,247,250
American Tower Corp., Class A *		68,100		2,155,365
Atheros Communications, Inc. *		68,700		1,898,868
CommScope, Inc. *		65,000		1,752,400
Corning, Inc.		245,400		3,700,632
SBA Communications Corp. * (a)		213,288		5,142,374
Tellabs, Inc. *		173,700		1,101,258
				16,998,147
Travel Services - 0.84%
Ctrip.com International, Ltd., ADR *		38,300		1,874,402
TOTAL COMMON STOCKS (Cost $193,232,417)			$	218,922,184
SHORT TERM INVESTMENTS - 7.00%
John Hancock Collateral Investment Trust, 0.3900% (c)(g)		1,560,342	$	15,621,057
TOTAL SHORT TERM INVESTMENTS (Cost $15,609,763)			$	15,621,057

Vista Fund (continued)

	Shares or Principal Amount		Value
REPURCHASE AGREEMENTS - 2.15%
Repurchase Agreement with State Street Corp. dated 08/31/2009 at 0.07% to be repurchased at $4,805,009 on 09/01/2009, collateralized by $4,805,000 Federal National Mortgage Association, 4.12% due 05/06/2013 (valued at $4,902,061, including interest)	$	4,805,000	$	4,805,000
TOTAL REPURCHASE AGREEMENTS (Cost $4,805,000)			$	4,805,000
Total Investments (Vista Fund) (Cost $213,647,180) - 107.18%			$	239,348,241
Other assets and liabilities, net - (7.18)%				(16,036,178	)
TOTAL NET ASSETS - 100.00%			$	223,312,063

Footnotes

Percentages are stated as a percent of net assets.

Key to Currency Abbreviations

ARS	- Argentine Peso
AUD	- Australian Dollar
BRL	- Brazilian Real
CAD	- Canadian Dollar
CHF	- Swiss Franc
COP	- Colombian Peso
CZK	- Czech Koruna
DKK	- Danish Krone
EGP	- Egyptian Pound
EUR	- Euro
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

The accompanying notes are an integral part of the financial statements.

374

John Hancock Funds II

Portfolio of Investments — August 31, 2009 (showing percentage of total net assets)

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
SBA	- Small Business Administration
SBI	- Shares of Beneficial Interest
SADR	- Sponsored American Depositary Receipts
SPDR	- Standard & Poor’s Depositary Receipts
TBA	- To Be Announced
TIPS	- Treasury Inflation Protected Security

^	Non-Income Producing, issuer is in bankruptcy and/or 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, 2009.
(f)	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.
(g)	John Hancock Collateral Investment Trust is managed by MFC Global Investment Management (U.S.), LLC, and represents investment of securities lending collateral. The rate shown is the annualized seven-day yield at August 31, 2009.
(h)	The subadviser is an affiliate of the adviser and the fund.
(i)	The Underlying Fund’s subadviser is shown parenthetically.
(j)	Security Purchased on a when-issued or delayed delivery basis.
(k)	Variable Rate Preferred
(l)	Delisted
(m)	All or a portion of this position represents unsettled loan commitment. The coupon rate will be determined at time of settlement.
**	Purchased on a forward commitment.
***	At period end, all or a portion of this security has been held at broker to meet the margin requirements on open financial futures.

The accompanying notes are an integral part of the financial statements.

375

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Assets	Active Bond Fund			All Cap Core Fund			All Cap Growth Fund			All Cap Value Fund
Investments in unaffiliated issuers, at value	$	556,244,205		$	411,378,918		$	84,483,278		$	314,025,340
Investments in affiliated issuers, at value		—			24,010,310			1,798,951			30,276,606
Securities loaned, at value (Note 2)		—			23,357,510			1,752,779			29,173,092
Repurchase agreements, at value (Note 2)		18,698,000			36,326,000			2,700,000			3,997,000
Total investments, at value		574,942,205			495,072,738			90,735,008			377,472,038
Cash		76,133			742			281			980
Foreign currency, at value		32,564			—			—			—
Cash held at broker for futures contracts		216,000			—			—			—
Receivable for investments sold		1,108,183			—			966,639			3,164,023
Receivable for fund shares sold		33,312			—			—		��	—
Dividends and interest receivable		7,122,817			1,255,152			135,594			370,035
Receivable for securities lending income		122			9,557			1,392			22,252
Receivable due from adviser		—			—			—			—
Other assets		—			—			—			—
Total assets		583,531,336			496,338,189			91,838,914			381,029,328
Liabilities
Capital gains tax withholding		—			—			—			—
Payable for investments purchased		1,213,752			—			558,091			2,626,355
Payable for delayed delivery securities purchased		9,275,375			—			—			—
Payable for fund shares repurchased		47,049			—			612,666			175,805
Payable upon return of securities loaned (Note 2)		—			24,000,941			1,798,597			30,267,611
Payable for futures variation margin		40,000			485,509			—			—
Payable to affiliates
Accounting and legal services fees		6,553			6,642			1,085			7,267
Trustees’ fees		1,713			1,667			1,136			1,075
Other liabilities and accrued expenses		67,932			52,534			30,879			35,281
Total liabilities		10,652,374			24,547,293			3,002,454			33,113,394
Net assets
Capital paid-in	$	594,074,564		$	715,526,167		$	111,428,206		$	327,619,758
Undistributed net investment income (loss)		6,049,517			3,896,888			408,146			581,703
Accumulated undistributed net realized gain (loss) on investments		(5,590,308	)		(294,980,123	)		(34,079,195	)		(17,044,667	)
Net unrealized appreciation (depreciation) on investments		(21,654,811	)		47,347,964			11,079,303			36,759,140
Net assets	$	572,878,962		$	471,790,896		$	88,836,460		$	347,915,934
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	596,546,121		$	427,552,656		$	77,857,146		$	310,444,670
Investments in affiliated issuers, at cost		—		$	24,001,210		$	1,798,559		$	30,268,228
Foreign currency, at cost	$	36,767			—			—			—
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		—			—			—			—
Shares outstanding		—			—			—			—
Net asset value and redemption price per share		—			—			—			—
Class 1
Net assets	$	32,861,900			—		$	88,836,460		$	83,552,485
Shares outstanding		3,532,570			—			7,631,017			9,002,184
Net asset value, offering price and redemption price per share	$	9.30			—		$	11.64		$	9.28
Class NAV
Net assets	$	540,017,062		$	471,790,896			—		$	264,363,449
Shares outstanding		58,089,330			65,404,513			—			28,615,435
Net asset value, offering price and redemption price per share	$	9.30		$	7.21			—		$	9.24
Maximum Public Offering Price Per Share:
Class A (net asset value per share ÷ 95%)		—			—			—			—

 

376

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Alpha Opportunities Fund	Alternative Asset Allocation Fund			American Diversified Growth & Income Portfolio			American Fundamental Holdings Portfolio			American Global Diversification Portfolio			Blue Chip Growth Fund
$581,806,154	$	110,550		$	11,545,663		$	7,945,581		$	7,749,393		$	1,362,724,232
76,061,317		1,160,208	2		—			—			—			46,245,024
73,209,007		—			—			—			—			44,792,502
13,400,000		—			—			—			—			1,190,000
744,476,478		1,270,758			11,545,663			7,945,581			7,749,393			1,454,951,758
3,559		41,583			1,172			1,172			1,172			—
—		—			—			—			—			—
—		—			—			—			—			—
8,525,375		—			—			—			—			7,108,762
—		—			13,901			10,525			412,736			2,654,380
704,977		819			2,187			1,959			1,684			1,532,519
47,460		—			—			—			—			10,339
—		438			795			730			779			—
300		—			—			—			—			—
753,758,149		1,313,598			11,563,718			7,959,967			8,165,764			1,466,257,758
14,580		—			—			—			—			—
7,045,619		915			14,681			11,244			413,505			4,792,532
—		—			—			—			—			—
—		—			—			—			—			221,926
76,030,590		—			—			—			—			46,231,613
—		—			—			—			—			—
10,210		16			147			125			92			16,021
1,079		14			1,001			1,001			1,001			3,068
59,620		31,105			21,884			20,856			20,005			68,688
83,161,698		32,050			37,713			33,226			434,603			51,333,848
$559,192,951	$	999,293		$	10,421,010		$	7,171,710		$	6,987,169		$	1,685,083,119
1,601,736		10,195			94,750			71,689			61,040			1,544,987
20,806,947		4,385			(63,800	)		(126,133	)		(69,897	)		(505,545,102	)
88,994,8171		267,675			1,074,045			809,475			752,849			233,840,906
$670,596,451	$	1,281,548		$	11,526,005		$	7,926,741		$	7,731,161		$	1,414,923,910
$579,407,184	$	108,406		$	10,471,618		$	7,136,106		$	6,996,544		$	1,174,876,504
$76,059,977	$	894,677			—			—			—		$	46,234,439
—		—			—			—			—			—
—	$	1,281,548			—			—			—			—
—		100,000			—			—			—			—
—	$	12.82			—			—			—			—
—		—		$	11,526,005		$	7,926,741		$	7,731,161		$	152,873,438
—		—			1,355,670			903,491			905,113			9,796,679
—		—		$	8.50		$	8.77		$	8.54		$	15.60
$670,596,451		—			—			—			—		$	1,262,050,472
61,714,837		—			—			—			—			80,927,974
$10.87		—			—			—			—		$	15.59
—	$	13.49	3		—			—			—			—

 

1	Net of deferred India withholding taxes of $14,580.
2	See Note 10.
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.

 

377

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Assets	Capital Appreciation Fund			Core Bond Fund			Emerging Markets Value Fund			Emerging Small Company Fund
Investments in unaffiliated issuers, at value	$	1,032,399,042		$	463,431,456		$	953,865,751		$	24,939,387
Investments in affiliated issuers, at value		65,423,611			—			84,101,622			3,450,976
Securities loaned, at value (Note 2)		63,508,748			—			80,122,413			3,282,699
Repurchase agreements, at value (Note 2)		46,616,000			1,074,000			3,778,000			290,000
Total investments, at value		1,207,947,401			464,505,456			1,121,867,786			31,963,062
Cash		880			523			758			344
Foreign currency, at value		—			—			1,846,207			—
Receivable for investments sold		9,252,398			1,857,331			278,072			370,936
Receivable for delayed delivery securities sold		—			60,124,695			—			—
Receivable for forward foreign currency exchange contracts (Note 3)		—			—			—			—
Receivable for fund shares sold		2,613,905			186,036			855,324			—
Dividends and interest receivable		1,237,622			3,292,250			1,677,929			12,111
Receivable for securities lending income		18,983			—			71,386			3,946
Swap contracts, at value (Note 3)		—			—			—			—
Receivable for futures variation margin		—			—			—			—
Receivable due from adviser		—			—			—			5,668
Other assets		—			—			—			—
Total assets		1,221,071,189			529,966,291			1,126,597,462			32,356,067
Liabilities
Due to custodian		—			—			—			—
Payable for collateral held by Fund		—			—			—			—
Capital gains tax withholding		—			—			4,504,719			—
Payable for investments purchased		11,180,551			3,222,645			729,710			394,624
Payable for delayed delivery securities purchased		—			95,481,728			—			—
Payable for forward foreign currency exchange contracts (Note 3)		—			—			—			—
Payable for fund shares repurchased		54,648			—			8,272			80,257
Payable upon return of securities loaned (Note 2)		65,401,873			—			84,037,544			3,448,225
Options written, at value (Note 3)		—			—			—			—
Investments sold short, at value (Note 2)		—			9,935,235			—			—
Payable for interest on securities sold short		—			24,389			—			—
Swap contracts, at value (Note 3)		—			—			—			—
Miscellaneous payable		—			—			—			—
Payable to affiliates
Accounting and legal services fees		15,903			7,394			13,576			351
Trustees’ fees		2,058			1,258			1,529			1,064
Other liabilities and accrued expenses		57,579			47,030			283,191			30,075
Total liabilities		76,712,612			108,719,679			89,578,541			3,954,596
Net assets
Capital paid-in	$	1,259,250,063		$	408,451,041		$	900,047,510		$	53,546,501
Undistributed net investment income (loss)		2,109,200			3,166,924			6,576,109			—
Accumulated undistributed net realized gain (loss) on investments		(304,578,800	)		(2,376,785	)		(20,243,137	)		(28,895,711	)
Net unrealized appreciation (depreciation) on investments		187,578,114			12,005,432			150,638,439	1		3,750,681
Net assets	$	1,144,358,577		$	421,246,612		$	1,037,018,921		$	28,401,471
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	954,968,500		$	452,431,977		$	882,682,991		$	24,763,828
Investments in affiliated issuers, at cost	$	65,400,787			—		$	84,039,284		$	3,448,471
Foreign currency, at cost		—			—		$	1,850,289			—
Proceeds received on short sales		—		$	9,867,188			—			—
Premiums received on written options		—			—			—			—
Net unamortized upfront payment on swaps		—	��		—			—			—
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		—			—			—			—
Shares outstanding		—			—			—			—
Net asset value and redemption price per share		—			—			—			—
Class I
Net assets		—			—			—			—
Shares outstanding		—			—			—			—
Net asset value, offering price and redemption price per share		—			—			—			—
Class 1
Net assets	$	53,231,215		$	9,969,748			—		$	28,401,471
Shares outstanding		6,023,583			761,880			—			1,321,169
Net asset value, offering price and redemption price per share	$	8.84		$	13.09			—		$	21.50
Class NAV
Net assets	$	1,091,127,362		$	411,276,864		$	1,037,018,921			—
Shares outstanding		123,353,809			31,458,365			114,040,279			—
Net asset value, offering price and redemption price per share	$	8.85		$	13.07		$	9.09			—
Maximum Public Offering Price Per Share:
Class A (net asset value per share ÷ 95%)		—			—			—			—

 

1 Net of deferred India foreign withholding taxes of $4,504,719.

 

378

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Equity-Income Fund	Fundamental Value Fund			Global Agribusiness Fund				Global Bond Fund			Global Infrastructure Fund			Global Real Estate Fund
$708,991,825	$	1,295,559,183		$	2,242,917			$	618,947,638		$	2,054,247		$	259,363,430
65,982,948		113,598,925			—				—			—			17,915,228
63,119,003		110,646,836			—				—			—			17,062,311
750,000		—			—				31,531,000			—			—
838,843,776		1,519,804,944			2,242,917				650,478,638			2,054,247			294,340,969
—		892			96,446				905			54,255			—
—		13			—				6,964,078			—			1,941,363
—		2,010,070			—				650,396			—			1,583,667
—		—			—				186,916,264			—			—
—		—			—				6,008,398			—			—
—		227,302			—				67,518			—			—
2,565,632		1,549,009			4,112				6,459,692			5,806			1,091,266
17,919		34,311			—				—			—			10,103
—		—			—				7,450,334			—			—
—		—			—				195,398			—			—
95		—			129				—			713			—
—		—			—				—			—			14,242
841,427,422		1,523,626,541			2,343,604				865,191,621			2,115,021			298,981,610
—		—			—				—			—			5,443,460
—		—			—				8,980,000			—			—
—		—			—				—			—			—
—		9,635,402			15,778				4,982,875			—			1,587,357
—		—			—				106,282,227			—			—
—		—			—				2,412,861			—			—
3,326,702		562,092			—				—			—			2,540,972
65,959,560		113,574,107			—				—			—			17,903,901
—		—			—				351,781			—			—
—		—			—				90,831,474			—			—
—		—			—				—			—			—
—		—			—				3,562,962			—			—
—		—			—				2,098,832			—			—
7,258		18,416			26				8,972			26			449
1,973		2,552			16				1,693			16			1,637
62,377		96,884			34,373				131,970			34,437			121,546
69,357,870		123,889,453			50,193				219,645,647			34,479			27,599,322
$1,008,109,678	$	1,730,209,337		$	2,008,334			$	677,056,986		$	2,023,134		$	556,522,192
11,937,438		8,055,331			9,844				36,035,786			11,678			(3,984,100	)
(218,221,424)		(324,193,428	)		(16,033	)			(49,366,422	)		(61,379	)		(353,673,198	)
(29,756,140)		(14,334,152	)		291,266				(18,180,376	)		107,109			72,517,394
$772,069,552	$	1,399,737,088		$	2,293,411			$	645,545,974		$	2,080,542		$	271,382,288
$802,619,644	$	1,420,574,373		$	1,951,524			$	675,979,015		$	1,947,205		$	203,918,702
$65,980,276	$	113,570,828			—				—			—		$	17,905,176
—	$	13			—			$	6,969,742			—		$	1,941,344
—		—			—		��	$	90,448,584			—			—
—		—			—			$	542,201			—			—
—		—			—			$	610,179			—			—
—		—		$	1,145,006				—		$	1,038,723			—
—		—			100,364				—			101,214			—
—		—		$	11.41				—		$	10.26			—
—		—		$	1,148,405				—		$	1,041,819			—
—		—			100,476				—			101,319			—
—		—		$	11.43				—		$	10.28			—
$139,051,767	$	100,836,295			—			$	59,322,081			—			—
11,739,260		8,187,765			—				4,778,748			—			—
$11.85	$	12.32			—			$	12.41			—			—
$633,017,785	$	1,298,900,793			—			$	586,223,893			—		$	271,382,288
53,491,552		105,652,883			—				47,312,684			—			43,502,865
$11.83	$	12.29			—			$	12.39			—		$	6.24
—		—		$	12.01	1			—		$	10.80	1		—

 

1 On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced.

 

379

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Assets	Global Timber Fund			High Income Fund			High Yield Fund			Index 500 Fund
Investments in unaffiliated issuers, at value	$	2,279,547		$	434,652,696		$	909,335,315		$	1,775,352,121
Investments in affiliated issuers, at value		—			60			3,681,147			75,602,338
Securities loaned, at value (Note 2)		—			—			3,602,309			72,731,883
Repurchase agreements, at value (Note 2)		—			—			24,700,000			1,860,000
Total investments, at value		2,279,547			434,652,756			941,318,771			1,925,546,342
Cash		34,581			—			299,870			642
Foreign currency, at value		—			—			695,564			—
Cash held at broker for futures contracts		—			—			—			8,040,000
Foreign currency held at broker for futures contracts		—			—			—			—
Receivable for investments sold		—			1,810,868			6,010,728			176,327
Receivable for forward foreign currency exchange contracts (Note 3)		—			3,772			—			—
Receivable for fund shares sold		—			—			173,692			—
Dividends and interest receivable		3,588			10,317,363			26,884,224			4,597,796
Receivable for securities lending income		—			—			8,211			44,225
Swap contracts, at value (Note 3)		—			—			—			—
Receivable for futures variation margin		—			—			—			—
Receivable due from adviser		344			—			—			—
Other assets		—			—			—			—
Total assets		2,318,060			446,784,759			975,391,060			1,938,405,332
Liabilities
Due to custodian		—			2,306,273			—			—
Payable for investments purchased		—			22,020,830			5,975,348			—
Payable for forward foreign currency exchange contracts (Note 3)		—			227,097			—			—
Payable for fund shares repurchased		—			6,901,182			268,630			5,400,671
Payable upon return of securities loaned (Note 2)		—			60			3,676,650			75,564,965
Options written, at value (Note 3)		—			935,508			—			—
Swap contracts, at value (Note 3)		—			—			—			—
Payable for futures variation margin		—			—			—			257,950
Payable to affiliates
Accounting and legal services fees		24			5,085			10,238			19,632
Trustees’ fees		16			1,453			2,708			2,415
Other liabilities and accrued expenses		34,837			54,520			101,223			62,950
Total liabilities		34,877			32,452,008			10,034,797			81,308,583
Net assets
Capital paid-in	$	2,008,301		$	586,744,144		$	1,377,208,905		$	1,975,224,690
Undistributed net investment income (loss)		(13,084	)		9,044,845			24,556,159			26,530,273
Accumulated undistributed net realized gain (loss) on investments		(186,344	)		(24,987,442	)		(293,117,978	)		(293,301,923	)
Net unrealized appreciation (depreciation) on investments		474,310			(156,468,796	)		(143,290,823	)		148,643,709
Net assets	$	2,283,183		$	414,332,751		$	965,356,263		$	1,857,096,749
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	1,805,237		$	593,485,934		$	1,080,920,123		$	1,703,709,917
Investments in affiliated issuers, at cost		—		$	60		$	3,680,971		$	75,565,953
Foreign currency, at cost		—			—		$	708,141			—
Premiums received on written options		—		$	3,523,100			—			—
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	$	1,139,891			—			—			—
Shares outstanding		100,426			—			—			—
Net asset value and redemption price per share	$	11.35			—			—			—
Class I
Net assets	$	1,143,292			—			—			—
Shares outstanding		100,537			—			—			—
Net asset value, offering price and redemption price per share	$	11.37			—			—			—
Class 1
Net assets		—			—		$	59,564,005			—
Shares outstanding		—			—			7,447,764			—
Net asset value, offering price and redemption price per share		—			—		$	8.00			—
Class NAV
Net assets		—		$	414,332,751		$	905,792,258		$	1,857,096,749
Shares outstanding		—			64,925,428			113,943,256			243,235,325
Net asset value, offering price and redemption price per share		—		$	6.38		$	7.95		$	7.63
Maximum Public Offering Price Per Share:
Class A (net asset value per share ÷ 95%)	$	11.95	1		—			—			—

 

1 On single retail sales of less than $50,000 on sales of $50,000 or more and on group sales the offering price is reduced.

 

380

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

International Equity Index Fund	International Opportunities Fund			International Small Cap Fund			International Small Company Fund			International Value Fund			Investment Quality Bond Fund
$306,600,042	$	672,669,808		$	231,428,238		$	128,142,411		$	1,099,360,067		$	168,150,700
5,600,997		17,766,894			6,782,026			2,826,990			50,889,821			—
5,268,324		16,567,168			6,279,198			2,633,629			47,660,890			—
—		37,504,000			—			—			—			16,113,000
317,469,363		744,507,870			244,489,462			133,603,030			1,197,910,778			184,263,700
1,403		54			50,324			—			50,481			65
7,046,761		1,934,182			424,093			218,317			1,378,649			—
—		—			—			—			—			—
132,725		—			—			—			—			—
10		7,778,109			777,075			816,068			250,306			—
423,686		—			—			—			—			145,932
31,424		144,490			—			—			16,264			41,264
806,130		1,074,667			594,216			275,535			2,929,920			1,850,726
7,828		4,010			6,874			4,351			99,738			—
—		—			—			—			—			115,086
1,635,008		—			—			—			—			—
—		—			—			—			—			—
2,643		—			—			12,951			—			—
327,556,981		755,443,382			246,342,044			134,930,252			1,202,636,136			186,416,773
—		—			—			2,797,653			—			—
40		957,146			433,774			70,666			5,122			—
7,186		—			—			—			—			210,801
—		38,398			3,625,715			4,339,222			3,575,373			35,480
5,582,374		17,744,364			6,777,480			2,819,375			50,831,179			—
—		—			—			—			—			—
—		—			—			—			—			150,873
—		—			—			—			—			1,328
1,367		8,277			1,717			—			13,492			2,340
1,527		1,882			1,387			1,434			2,481			1,223
34,471		160,150			104,824			74,917			225,061			54,909
5,626,965		18,910,217			10,944,897			10,103,267			54,652,708			456,954
$399,066,997	$	917,205,447		$	323,065,923		$	286,143,605		$	1,473,215,323		$	188,044,480
8,803,775		6,875,924			3,716,975			3,883,755			19,206,932			2,169,358
(94,017,455)		(315,291,621	)		(81,389,200	)		(134,362,621	)		(217,112,403	)		(8,014,501	)
8,076,699		127,743,415			(9,996,551	)		(30,837,754	)		(127,326,424	)		3,760,482
$321,930,016	$	736,533,165		$	235,397,147		$	124,826,985		$	1,147,983,428		$	185,959,819
$305,960,953	$	599,038,100		$	247,715,088		$	161,617,166		$	1,274,337,216		$	180,331,112
$5,596,356	$	17,749,751		$	6,781,180		$	2,824,918		$	50,884,228			—
$6,969,146	$	1,926,486		$	423,309		$	221,460		$	1,372,607			—
—		—			—			—			—			—
—		—			—			—			—			—
—		—			—			—			—			—
—		—			—			—			—			—
—		—			—			—			—			—
—		—			—			—			—			—
—		—			—			—			—			—
—	$	28,569,616		$	115,669,855			—		$	293,640,583		$	63,767,081
—		2,390,720			9,519,120			—			22,605,392			5,371,048
—	$	11.95		$	12.15			—		$	12.99		$	11.87
$321,930,016	$	707,963,549		$	119,727,292		$	124,826,985		$	854,342,845		$	122,192,738
20,753,148		59,126,174			9,860,748			17,567,288			65,939,776			10,303,045
$15.51	$	11.97		$	12.14		$	7.11		$	12.96		$	11.86
—		—			—			—			—			—

 

381

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Assets	Large Cap Fund			Large Cap Value Fund			Mid Cap Index Fund			Mid Cap Stock Fund
Investments in unaffiliated issuers, at value	$	219,312,467		$	489,289,549		$	432,897,906		$	644,163,591
Investments in affiliated issuers, at value		5,170,823			26,172,066			69,227,435			57,423,013
Securities loaned, at value (Note 2)		5,014,053			24,793,536			66,499,984			55,030,911
Repurchase agreements, at value (Note 2)		2,905,000			1,396,000			1,705,000			6,700,000
Total investments, at value		232,402,343			541,651,151			570,330,325			763,317,515
Cash		149			777			771			79,954
Foreign currency, at value		—			—			—			—
Cash held at broker for futures contracts		—			—			4,250,000			—
Receivable for investments sold		270,273			7,625,737			—			19,249,403
Receivable for delayed delivery securities sold		—			—			—			—
Receivable for forward foreign currency exchange contracts (Note 3)		—			—			—			—
Receivable for fund shares sold		—			416,007			354,762			299,764
Dividends and interest receivable		378,770			1,194,870			546,937			408,039
Receivable for securities lending income		688			8,849			40,227			78,027
Swap contracts, at value (Note 3)		—			—			—			—
Receivable for futures variation margin		—			—			—			—
Total assets		233,052,223			550,897,391			575,523,022			783,432,702
Liabilities
Due to custodian		—			—			—			—
Payable for collateral held by Fund		—			—			—			—
Payable for investments purchased		508,993			7,804,640			—			11,145,793
Payable for delayed delivery securities purchased		—			—			—			—
Payable for forward foreign currency exchange contracts (Note 3)		—			—			—			—
Payable for fund shares repurchased		28,243			142,834			—			1,199,400
Payable upon return of securities loaned (Note 2)		5,165,310			26,158,476			69,177,955			57,383,586
Options written, at value (Note 3)		—			—			—			—
Investments sold short, at value (Note 2)		—			—			—			—
Swap contracts, at value (Note 3)		—			—			—			—
Payable for futures variation margin		—			—			163,200			—
Miscellaneous payable		—			—			—			—
Payable to affiliates
Accounting and legal services fees		3,130			6,099			7,520			10,900
Trustees’ fees		1,354			1,728			1,352			1,709
Other liabilities and accrued expenses		33,932			49,643			37,272			70,444
Total liabilities		5,740,962			34,163,420			69,387,299			69,811,832
Net assets
Capital paid-in	$	359,198,504		$	744,217,971		$	547,083,846		$	879,273,847
Undistributed net investment income (loss)		1,345,630			5,818,716			3,031,479			(284,416	)
Accumulated undistributed net realized gain (loss) on investments		(143,627,660	)		(253,938,379	)		(35,679,484	)		(257,314,533	)
Net unrealized appreciation (depreciation) on investments		10,394,787			20,635,663			(8,300,118	)		91,945,972
Net assets	$	227,311,261		$	516,733,971		$	506,135,723		$	713,620,870
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	216,838,450		$	494,853,844		$	511,121,755		$	613,985,030
Investments in affiliated issuers, at cost	$	5,169,106		$	26,161,644		$	69,178,500		$	57,386,339
Foreign currency, at cost		—			—			—			—
Proceeds received on short sales		—			—			—			—
Premiums received on written options		—			—			—			—
Net unamortized upfront payment on swaps		—			—			—			—
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	$	21,047,397		$	83,903,204			—		$	266,328,115
Shares outstanding		2,015,841			5,243,451			—			21,396,131
Net asset value, offering price and redemption price per share	$	10.44		$	16.00			—		$	12.45
Class NAV
Net assets	$	206,263,864		$	432,830,767		$	506,135,723		$	447,292,755
Shares outstanding		19,752,962			26,997,065			34,828,162			35,864,186
Net asset value, offering price and redemption price per share	$	10.44		$	16.03		$	14.53		$	12.47

 

382

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Mid Cap Value Equity Fund	Mid Value Fund		Natural Resources Fund			Real Estate Equity Fund			Real Estate Securities Fund			Real Return Bond Fund
$143,806,042	$	297,509,718	$	585,016,089		$	155,957,000		$	61,088,652		$	1,342,398,201
18,350,315		—		68,626,751			59,029,273			13,803,860			—
17,525,932		—		64,802,187			56,433,045			13,354,754			—
—		—		13,868,000			—			536,000			37,318,000
179,682,289		297,509,718		732,313,027			271,419,318			88,783,266			1,379,716,201
6,178		—		413			—			872			157,591
—		—		96,556			—			—			1,515,493
—		—		—			—			—			—
1,411,612		4,892,512		691,242			5,073,229			585,527			1,137,934
—		—		—			—			—			177,607,184
—		—		—			—			—			268,474
—		—		3,052,089			—			83,749			403,861
403,982		401,715		1,680,980			952,250			236,906			6,947,322
14,107		—		29,154			46,590			3,441			—
—		—		—			—			—			4,105,280
—		—		—			—			—			105,823
181,518,168		302,803,945		737,863,461			277,491,387			89,693,761			1,571,965,163
—		—		—			1,369,045			—			—
—		—		—			—			—			12,680,000
606,163		2,161,774		7,051			—			393,921			914,030
—		—		—			—			—			380,093,290
—		—		—			—			—			717,733
547,870		71,419		685,925			8,367,365			305,937			—
18,338,392		—		68,591,179			59,005,979			13,801,175			—
—		—		—			—			—			1,055,882
—		—		—			—			—			56,540,512
—		—		—			—			—			1,548,711
—		—		—			—			—			—
—		—		—			—			—			193,303
1,869		7,268		8,093			2,738			744			15,622
1,082		—		1,664			1,250			1,109			1,968
28,269		34,553		81,254			34,939			39,761			96,352
19,523,645		2,275,014		69,375,166			68,781,316			14,542,647			453,857,403
$171,966,577	$	252,907,183	$	728,213,636		$	309,450,200		$	110,410,949		$	1,167,130,183
902,413		540,573		3,558,867			3,112,521			1,095,405			15,759,815
(25,541,368)		1,124,342		(45,053,211	)		(133,915,052	)		(49,384,203	)		(79,215,187	)
14,666,901		45,956,833		(18,230,997	)		30,062,402			13,028,963			14,432,949
$161,994,523	$	300,528,931	$	668,488,295		$	208,710,071		$	75,151,114		$	1,118,107,760
$146,676,917	$	251,552,885	$	681,918,984		$	182,355,108		$	61,954,597		$	1,367,266,975
$18,338,283		—	$	68,625,987		$	59,001,808		$	13,799,706			—
—		—	$	96,945			—			—		$	1,503,587
—		—		—			—			—		$	56,361,585
—		—		—			—			—		$	2,090,655
—		—		—			—			—		$	2,219,107
—		—	$	139,075,165			—		$	75,151,114		$	59,709,316
—		—		7,873,094			—			8,622,033			4,934,688
—		—	$	17.66			—		$	8.72		$	12.10
$161,994,523	$	300,528,931	$	529,413,130		$	208,710,071			—		$	1,058,398,444
21,961,835		23,841,673		30,161,938			38,990,754			—			88,290,373
$7.38	$	12.61	$	17.55		$	5.35			—		$	11.99

 

383

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Assets	Short Term Government Income Fund		Small Cap Growth Fund			Small Cap Index Fund			Small Cap Opportunities Fund
Investments in unaffiliated issuers, at value	$	24,360,684	$	124,229,396		$	88,050,511		$	88,252,358
Investments in affiliated issuers, at value		—		—			10,807,283			9,964,400
Securities loaned, at value (Note 2)		—		—			10,312,264			9,704,358
Repurchase agreements, at value (Note 2)		226,000		—			847,000			1,371,000
Total investments, at value		24,586,684		124,229,396			110,017,058			109,292,116
Cash		842		—			852			917
Foreign currency, at value		—		—			—			—
Cash held at broker for futures contracts		—		—			1,200,000			—
Receivable for investments sold		762,288		1,462,605			—			665,679
Receivable for delayed delivery securities sold		—		—			—			—
Receivable for forward foreign currency exchange contracts (Note 3)		—		—			—			—
Receivable for fund shares sold		59,146		—			129,147			—
Dividends and interest receivable		157,140		49,226			78,182			57,811
Receivable for securities lending income		—		—			19,583			7,102
Receivable for futures variation margin		—		—			—			—
Receivable due from adviser		53,776		—			—			—
Miscellaneous receivable		—		—			—			—
Other assets		—		—			—			—
Total assets		25,619,876		125,741,227			111,444,822			110,023,625
Liabilities
Due to custodian		—		1,046,157			—			—
Payable for investments purchased		777,285		648,624			287,427			1,425,594
Payable for delayed delivery securities purchased		—		—			—			—
Payable for forward foreign currency exchange contracts (Note 3)		—		—			—			—
Payable for fund shares repurchased		—		2,169,779			—			319,057
Payable upon return of securities loaned (Note 2)		—		—			10,796,933			9,960,412
Options written, at value (Note 3)		—		—			—			—
Swap contracts, at value (Note 3)		—		—			—			—
Payable for futures variation margin		—		—			26,980			—
Payable to affiliates
Accounting and legal services fees		408		1,583			345			815
Trustees’ fees		13		1,033			1,139			1,098
Other liabilities and accrued expenses		40,852		33,220			26,857			29,679
Total liabilities		818,558		3,900,396			11,139,681			11,736,655
Net assets
Capital paid-in	$	24,552,014	$	110,137,144		$	123,782,839		$	131,395,879
Undistributed net investment income (loss)		192,199		—			929,719			76,712
Accumulated undistributed net realized gain (loss) on investments		18,595		(11,307,366	)		(45,695,110	)		(46,082,834	)
Net unrealized appreciation (depreciation) on investments		38,510		23,011,053			21,287,693			12,897,213
Net assets	$	24,801,318	$	121,840,831		$	100,305,141		$	98,286,970
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	24,548,174	$	101,218,343		$	78,130,692		$	86,433,671
Investments in affiliated issuers, at cost		—		—		$	10,798,833		$	9,961,232
Foreign currency, at cost		—		—			—			—
Premiums received on written options		—		—			—			—
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		—		—			—		$	44,750,135
Shares outstanding		—		—			—			2,956,089
Net asset value, offering price and redemption price per share		—		—			—		$	15.14
Class NAV
Net assets	$	24,801,318	$	121,840,831		$	100,305,141		$	53,536,835
Shares outstanding		2,444,878		14,534,939			10,155,618			3,553,094
Net asset value, offering price and redemption price per share	$	10.14	$	8.38		$	9.88		$	15.07

 

384

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Small Cap Value Fund	Small Company Growth Fund			Small Company Value Fund			Smaller Company Growth Fund			Spectrum Income Fund			Strategic Bond Fund
$77,242,952	$	100,742,383		$	331,558,085		$	143,307,394		$	891,761,875		$	498,982,923
—		23,222,667			33,587,486			10,453,767			12,270,597			17,747,069
—		22,356,548			32,343,466			10,127,713			11,765,432			17,397,741
2,207,000		—			734,000			4,403,000			3,385,000			26,100,000
79,449,952		146,321,598			398,223,037			168,291,874			919,182,904			560,227,733
57		581			—			1,188			846			301,586
—		—			—			—			174,917			536,527
—		—			—			400,000			—			—
—		1,458,469			379,899			2,447,791			4,315,202			613,097
—		—			—			—			4,558			—
—		—			—			—			312,914			—
—		57,173			—			—			—			173,940
99,384		44,140			463,670			29,742			10,095,106			6,113,707
—		10,998			10,260			19,596			3,806			1,141
—		—			—			—			—			389,541
—		—			—			—			—			—
—		—			—			—			—			886
—		—			—			—			—			828
79,549,393		147,892,959			399,076,866			171,190,191			934,090,253			568,358,986
—		—			—			—			—			—
50,823		2,728,100			1,084,281			2,224,525			19,200,134			—
—		—			—			—			1,128,141			52,965,050
—		—			—			—			467,993			—
73,849		—			1,238,715			—			—			129,759
—		23,201,710			33,554,461			10,446,290			12,262,956			17,746,600
—		—			—			—			—			83,175
—		—			—			—			48,198			—
—		—			—			8,045			28,838			—
1,993		789			2,667			1,857			10,931			6,280
991		1,186			1,554			1,048			2,208			1,560
30,758		29,142			44,189			34,525			129,421			66,696
158,414		25,960,927			35,925,867			12,716,290			33,278,820			70,999,120
$67,773,996	$	156,384,423		$	425,115,738		$	140,601,188		$	940,385,534		$	569,076,070
71,159		—			1,734,451			—			7,645,068			10,874,264
284,407		(41,889,328	)		(66,890,897	)		(7,374,753	)		(55,618,406	)		(24,249,613	)
11,261,417		7,436,937			3,191,707			25,247,466			8,399,237			(58,340,855	)
$79,390,979	$	121,932,032		$	363,150,999		$	158,473,901		$	900,811,433		$	497,359,866
$68,188,535	$	115,681,696		$	361,475,387		$	132,596,265		$	898,397,496		$	602,060,231
—	$	23,202,965		$	33,555,943		$	10,452,324		$	12,269,992		$	17,746,602
—		—			—			—		$	173,185		$	485,475
—		—			—			—			—		$	70,897
—		—		$	101,279,567			—			—		$	39,539,303
—		—			5,139,152			—			—			3,839,277
—		—		$	19.71			—			—		$	10.30
$79,390,979	$	121,932,032		$	261,871,432		$	158,473,901		$	900,811,433		$	457,820,563
6,351,016		12,826,357			13,302,162			15,272,780			90,087,967			44,560,012
$12.50	$	9.51		$	19.69		$	10.38		$	10.00		$	10.27

 

385

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

Assets	Strategic Income Fund			Total Bond Market Fund		Total Return Fund			U.S. Government Securities Fund
Investments in unaffiliated issuers, at value	$	452,495,268		$	440,306,243	$	2,152,301,148		$	124,846,722
Investments in affiliated issuers, at value		—			2,161,266		—			12,522,525
Securities loaned, at value (Note 2)		—			2,123,138		—			12,276,308
Repurchase agreements, at value (Note 2)		—			12,732,000		15,424,000			18,300,000
Total investments, at value		452,495,268			457,322,647		2,167,725,148			167,945,555
Cash		58,515			66		—			342,695
Foreign currency, at value		1,028,884			—		3,072,488			—
Cash held at broker for futures contracts		1,522,800			—		—			—
Receivable for investments sold		9,838,840			442,898		1,524,474			—
Receivable for delayed delivery securities sold		—			—		391,935,254			—
Receivable for forward foreign currency exchange contracts (Note 3)		7,121,854			—		581,827			—
Receivable for fund shares sold		248,581			64,857		865,497			228,888
Dividends and interest receivable		8,907,444			3,313,181		11,090,647			651,918
Receivable for securities lending income		—			120		—			770
Swap contracts, at value (Note 3)		—			—		30,607,988			—
Receivable for futures variation margin		—			—		445,484			149,551
Miscellaneous receivable		—			—		—			1,425
Total assets		481,222,186			461,143,769		2,607,848,807			169,320,802
Liabilities
Due to custodian		—			—		—			—
Payable for collateral held by Fund		—			—		28,990,000			—
Payable for investments purchased		19,090,603			313,492		—			—
Payable for delayed delivery securities purchased		—			12,099,564		700,598,348			15,212,691
Payable for forward foreign currency exchange contracts (Note 3)		10,935,140			—		311,091			—
Payable for fund shares repurchased		—			—		81,737			—
Payable upon return of securities loaned (Note 2)		—			2,161,200		—			12,522,400
Options written, at value (Note 3)		340,874			—		1,499,973			582,538
Investments sold short, at value (Note 2)		—			—		92,355,863			—
Swap contracts, at value (Note 3)		—			—		2,755,395			—
Payable for futures variation margin		282,000			—		—			—
Miscellaneous payable		—			—		399,378			—
Payable to affiliates
Accounting and legal services fees		5,650			5,237		22,919			1,622
Trustees’ fees		1,513			1,221		3,035			1,230
Other liabilities and accrued expenses		74,792			30,911		130,011			43,191
Total liabilities		30,730,572			14,611,625		827,147,750			28,363,672
Net assets
Capital paid-in	$	463,853,049		$	419,526,497	$	1,739,341,313		$	159,664,517
Undistributed net investment income (loss)		8,880,952			3,059,919		31,549,313			1,249,184
Accumulated undistributed net realized gain (loss) on investments		(13,640,713	)		7,393,791		(12,178,801	)		(495,077	)
Net unrealized appreciation (depreciation) on investments		(8,601,674	)		16,551,937		21,989,232			(19,461,494	)
Net assets	$	450,491,614		$	446,532,144	$	1,780,701,057		$	140,957,130
Investments in unaffiliated issuers, including repurchase agreements, at cost	$	457,514,161		$	438,609,511	$	2,185,968,147		$	175,306,584
Investments in affiliated issuers, at cost		—		$	2,161,199		—		$	12,522,400
Foreign currency, at cost	$	1,021,226			—	$	3,103,553			—
Proceeds received on short sales		—			—	$	92,032,337			—
Premiums received on written options	$	743,622			—	$	2,572,417		$	95,479
Net unamortized upfront payment on swaps		—			—	$	2,783,946			—
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		—			—	$	233,603,133		$	47,047,989
Shares outstanding		—			—		16,657,359			3,874,463
Net asset value, offering price and redemption price per share		—			—	$	14.02		$	12.14
Class NAV
Net assets	$	450,491,614		$	446,532,144	$	1,547,097,924		$	93,909,141
Shares outstanding		46,171,516			42,871,169		110,622,777			7,756,177
Net asset value, offering price and redemption price per share	$	9.76		$	10.42	$	13.99		$	12.11

 

386

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Assets and Liabilities — August 31, 2009

U.S. High Yield Bond Fund	U.S. Multi Sector Fund			Value Fund			Value & Restructuring Fund			Vista Fund
$724,669,064	$	793,363,562		$	116,529,267		$	482,388,481		$	204,089,106
—		34,463,890			6,867,760			31,457,457			15,621,057
—		33,501,504			6,716,156			29,904,709			14,833,078
51,469,000		38,096,000			—			—			4,805,000
776,138,064		899,424,956			130,113,183			543,750,647			239,348,241
520,700		278			11,291			—			51
—		2,511,000			—			—			—
—		—			—			—			—
2,844,758		—			569,138			629,945			1,361,857
—		—			—			—			—
—		—			—			—			—
249,569		—			—			440,418			350,587
13,995,645		2,668,064			221,784			1,369,190			53,900
—		7,252			1,321			5,035			20,055
—		—			—			—			—
—		—			—			—			—
—		—			—			—			—
793,748,736		904,611,550			130,916,717			546,195,235			241,134,691
—		—			—			562,848			—
—		—			—			—			—
16,486,723		—			1,298,317			—			2,172,856
—		—			—			—			—
—		—			—			—			—
—		—			641,157			—			—
—		34,456,639			6,865,374			31,447,445			15,609,663
—		—			—			—			—
—		—			—			—			—
—		—			—			—			—
—		179,025			—			—			—
—		—			—			—			—
11,695		13,427			2,844			6,438			4,060
1,544		1,924			1,005			1,546			1,103
63,288		54,973			29,312			56,190			34,946
16,563,250		34,705,988			8,838,009			32,074,467			17,822,628
$809,647,229	$	1,059,231,561		$	114,049,725		$	615,663,113		$	233,976,780
12,323,026		7,868,932			411,804			5,014,623			86
(40,412,433)		(225,067,459	)		(9,030,756	)		(162,088,295	)		(36,365,879	)
(4,372,336)		27,872,528			16,647,935			55,531,327			25,701,076
$777,185,486	$	869,905,562		$	122,078,708		$	514,120,768		$	223,312,063
$780,510,400	$	838,668,543		$	106,599,703		$	456,770,843		$	198,037,417
—	$	34,456,624		$	6,865,545		$	31,449,685		$	15,609,763
—		—			—			—			—
—		—			—			—			—
—		—			—			—			—
—		—			—			—			—
$34,443,504		—			—			—			—
2,932,873		—			—			—			—
$11.74		—			—			—			—
$742,741,982	$	869,905,562		$	122,078,708		$	514,120,768		$	223,312,063
63,279,062		105,383,139			15,717,158			59,130,665			33,116,561
$11.74	$	8.25		$	7.77		$	8.69		$	6.74

 

387

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Investment income	Active Bond Fund				All Cap Core Fund			All Cap Growth Fund			All Cap Value Fund
Interest	$	36,756,955			$	123,355		$	12,308		$	10,444
Dividends		117,207				8,808,284			1,655,088			2,123,618
Securities lending		61,675				312,794			6,232			83,348
Income from affiliated issuers		—				4,171			343			530
Income distributions received from affiliated underlying funds		—				—			—			—
Less foreign taxes withheld		(58,273	)			—			(13,781	)		(13,020	)
Total investment income		36,877,564				9,248,604			1,660,190			2,204,920
Expenses
Investment management fees (Note 6)		3,249,339				3,073,239			756,449			1,238,477
Class A distribution and service fees (Note 6)		—				—			—			—
Class 1 distribution and service fees (Note 6)		15,206				—			36,522			32,541
Accounting and legal services fees (Note 6)		93,273				68,935			14,707			27,480
Professional fees		73,350		��		35,673			29,040			27,780
Printing and postage fees (Note 6)		—				—			—			—
Custodian fees		141,987				61,113			41,222			36,942
Trustees’ fees (Note 7)		9,392				7,168			2,471			2,496
Registration and filing fees		11,384				22,511			8,313			9,007
Miscellaneous		5,991				3,386			1,767			590
Total expenses		3,599,922				3,272,025			890,491			1,375,313
Net expense reduction (Note 6)		—				—			—			—
Net expenses		3,599,922				3,272,025			890,491			1,375,313
Net investment income (loss)		33,277,642				5,976,579			769,699			829,607
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(4,489,031	)			(205,950,018	)		(33,820,271	)		(16,918,333	)
Investments in affiliated issuers		—				269			(38	)		617
Capital gain distributions received from underlying funds		—				—			—			—
Futures contracts		478,488				(20,253,506	)		—			—
Swap contracts		119,266				—			—			—
Foreign currency transactions		2,394				—			(100,525	)		(395	)
		(3,888,883	)			(226,203,255	)		(33,920,834	)		(16,918,111	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		13,543,541				57,693,815			6,286,893			32,871,363
Investments in affiliated issuers		—				9,100			392			8,378
Futures contracts		(47,069	)			4,575,645			—			—
Swap contracts		(51,187	)			—			—			—
Translation of assets and liabilities in foreign currencies		(5,938	)			—			1,696			—
		13,439,347				62,278,560			6,288,981			32,879,741
Net realized and unrealized gain (loss)		9,550,464				(163,924,695	)		(27,631,853	)		15,961,630
Increase (decrease) in net assets from operations	$	42,828,106				($157,948,116	)		($26,862,154	)	$	16,791,237

 

388

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Alpha Opportunities Fund	Alternative Asset Allocation Fund			American Diversified Growth & Income Portfolio			American Fundamental Holdings Portfolio			American Global Diversification Portfolio			Blue Chip Growth Fund
$49,213		—			—			—			—		$	108,791
5,347,583		—		$	142,070		$	99,078		$	94,291			13,537,421
168,531		—			—			—			—			364,652
—		—			—			—			—			11,836
—	$	13,421			—			—			—			—
(81,266)		—			—			—			—			(99,883	)
5,484,061		13,421			142,070			99,078			94,291			13,922,817
3,636,852		1,422			1,956			1,347			1,205			10,577,940
—		2,147			—			—			—			—
—		—			2,260			1,557			1,390			66,677
66,828		128			774			550			473			221,914
36,665		32,995			24,410			24,793			24,396			52,845
—		77			—			—			—			—
192,808		7,715			10,734			10,734			10,734			170,954
5,162		22			1,042			1,028			1,025			21,647
9,651		3,747			5,607			4,295			3,773			30,464
919		270			16			7			8			11,592
3,948,885		48,523			46,799			44,311			43,004			11,154,033
—		(44,590	)		(44,102	)		(42,454	)		(41,343	)		(390,906	)
3,948,885		3,933			2,697			1,857			1,661			10,763,127
1,535,176		9,488			139,373			97,221			92,630			3,159,690
21,153,216		—			(87,866	)		(138,201	)		(91,348	)		(415,975,694	)
29,387		4,385			—			—			—			—
—		—			24,103			12,181			21,502			—
—		—			—			—			—			—
—		—			—			—			—			—
(43,001)		—			—			—			—			28,963
21,139,602		4,385			(63,763	)		(126,020	)		(69,846	)		(415,946,731	)
88,993,397		2,144			1,101,355			835,208			805,158			8,211,900
1,340		265,531			—			—			—			10,585
—		—			—			—			—			—
—		—			—			—			—			—
80		—			—			—			—			5,897
88,994,817		267,675			1,101,355			835,208			805,158			8,228,382
110,134,419		272,060			1,037,592			709,188			735,312			(407,718,349	)
$111,669,595	$	281,548		$	1,176,965		$	806,409		$	827,942			($404,558,659	)

 

389

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Investment income	Capital Appreciation Fund			Core Bond Fund			Emerging Markets Value Fund			Emerging Small Company Fund
Interest	$	44,938		$	12,534,349		$	21,231		$	5,033
Dividends		9,580,900			—			17,346,931			195,739
Securities lending		108,271			3,642			720,442			50,376
Income from affiliated issuers		16,380			—			—			2,543
Less foreign taxes withheld		(234,955	)		(32,474	)		(1,487,087	)		(915	)
Total investment income		9,515,534			12,505,517			16,601,517			252,776
Expenses
Investment management fees (Note 6)		6,153,689			1,575,444			6,423,808			295,240
Class A distribution and service fees (Note 6)		—			—			—			—
Class 1 distribution and service fees (Note 6)		22,317			3,532			—			12,309
Accounting and legal services fees (Note 6)		148,335			44,222			117,545			5,252
Professional fees		41,800			44,112			54,040			30,352
Printing and postage fees (Note 6)		—			—			—			—
Custodian fees		77,755			101,759			583,406			33,451
Trustees’ fees (Note 7)		13,265			4,238			9,848			1,514
Registration and filing fees		23,875			5,880			15,652			6,674
Tax expenses		—			—			—			—
Miscellaneous		7,216			3,658			9,261			331
Total expenses		6,488,252			1,782,845			7,213,560			385,123
Net expense reduction (Note 6)		—			—			—			—
Net expenses		6,488,252			1,782,845			7,213,560			385,123
Net investment income (loss)		3,027,282			10,722,672			9,387,957			(132,347	)
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(183,846,839	)		(929,460	)		(19,330,375	)1		(19,648,611	)
Investments in affiliated issuers		(1,086	)		—			1,741			247
Futures contracts		—			—			—			—
Options written		—			—			—			—
Short sales		—			(72,422	)		—			—
Swap contracts		—			—			—			—
Foreign currency transactions		(20,608	)		—			(685,011	)		(17,892	)
		(183,868,533	)		(1,001,882	)		(20,013,645	)		(19,666,256	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		83,136,795			13,298,216			234,373,424	2		(1,050,782	)
Investments in affiliated issuers		22,824			—			62,338			2,505
Futures contracts		—			—			—			—
Options written		—			—			—			—
Short sales		—			(68,047	)		—			—
Swap contracts		—			—			—			—
Translation of assets and liabilities in foreign currencies		—			—			27,410			36
		83,159,619			13,230,169			234,463,172			(1,048,241	)
Net realized and unrealized gain (loss)		(100,708,914	)		12,228,287			214,449,527			(20,714,497	)
Increase (decrease) in net assets from operations		($97,681,632	)	$	22,950,959		$	223,837,484			($20,846,844	)

 

1	Net of India foreign taxes of $304,232.
2	Net of $4,504,719 increase in deferred India foreign withholding taxes.

 

390

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Equity-Income Fund	Fundamental Value Fund			Global Agribusiness Fund			Global Bond Fund			Global Infrastructure Fund			Global Real Estate Fund
$412,589	$	1,378,630			—		$	25,173,963			—		$	394,672
24,048,984		20,324,259		$	30,220			1,604		$	61,532			17,513,160
704,573		915,086			—			—			—			270,930
19,219		30,240			—			—			—			3,950
(146,800)		(252,419	)		(2,204	)		(38,575	)		(5,519	)		(897,960	)
25,038,565		22,395,796			28,016			25,136,992			56,013			17,284,752
5,649,739		8,542,830			11,732			3,650,337			10,268			3,699,748
—		—			2,069			—			1,811			—
59,118		39,330			—			29,081			—			—
116,585		199,964			245			84,231			217			67,946
39,300		48,754			36,517			86,019			36,514			48,893
—		—			139			—			136			—
130,532		194,267			8,407			394,448			14,003			431,298
11,609		17,849			32			8,671			30			7,498
13,971		35,790			3,692			7,875			3,699			31,565
—		—			—			—			—			6,402
4,221		9,334			244			32,283			245			5,899
6,025,075		9,088,118			63,077			4,292,945			66,923			4,299,249
(209,518)		—			(46,171	)		—			(52,127	)		—
5,815,557		9,088,118			16,906			4,292,945			14,796			4,299,249
19,223,008		13,307,678			11,110			20,844,047			41,217			12,985,503
(217,375,769)		(299,014,993	)		(8,020	)		13,979,711			(61,379	)		(287,455,690	)
20,716		3,278			—			—			—			1,276
—		—			—			14,775,945			—			—
—		—			—			(14,088,808	)		—			—
—		—			—			(1,310,830	)		—			—
—		—			—			(22,189,370	)		—			—
(21,622)		459,814			(945	)		(872,542	)		(6,405	)		5,335,810
(217,376,675)		(298,551,901	)		(8,965	)		(9,705,894	)		(67,784	)		(282,118,604	)
71,613,962		15,163,513			291,393			5,290,828			107,042			131,089,587
2,672		28,097			—			—			—			10,052
—		—			—			835,036			—			—
—		—			—			871,300			—			—
—		—			—			500,725			—			—
—		—			—			6,394,604			—			—
6,436		7,298			(127	)		8,814,609			67			(1,178,344	)
71,623,070		15,198,908			291,266			22,707,102			107,109			129,921,295
(145,753,605)		(283,352,993	)		282,301		��	13,001,208			39,325			(152,197,309	)
($126,530,597)		($270,045,315	)	$	293,411		$	33,845,255		$	80,542			($139,211,806	)

 

391

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Investment income	Global Timber Fund			High Income Fund			High Yield Fund			Index 500 Fund
Interest		—		$	41,755,402		$	146,452,583		$	191,641
Dividends	$	25,358			3,588,775			1,001,264			44,187,258
Securities lending		—			24,724			224,592			1,513,229
Income from affiliated issuers		—			777			213,003			—
Less foreign taxes withheld		(2,172	)		—			(291,563	)		(1,041	)
Total investment income		23,186			45,369,678			147,599,879			45,891,087
Expenses
Investment management fees (Note 6)		10,196			2,382,589			7,553,921			7,700,164
Class A distribution and service fees (Note 6)		1,798			—			—			—
Class 1 distribution and service fees (Note 6)		—			—			19,497			—
Accounting and legal services fees (Note 6)		209			61,019			193,557			304,948
Professional fees		36,514			46,775			76,982			52,323
Printing and postage fees (Note 6)		134			—			—			—
Custodian fees		8,919			45,358			253,554			8,820
Trustees’ fees (Note 7)		30			6,287			19,336			24,699
Registration and filing fees		3,704			11,918			18,271			45,872
Tax expenses		—			—			—			—
Miscellaneous		244			3,222			7,647			11,129
Total expenses		61,748			2,557,168			8,142,765			8,147,955
Net expense reduction (Note 6)		(47,055	)		—			—			—
Net expenses		14,693			2,557,168			8,142,765			8,147,955
Net investment income (loss)		8,493			42,812,510			139,457,114			37,743,132
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(186,344	)		(6,938,137	)		(224,049,025	)		(300,085,989	)
Investments in affiliated issuers		—			—			4,321			988
Futures contracts		—			—			—			10,797,308
Swap contracts		—			—			—			—
Foreign currency transactions		(13,276	)		575,960			(7,061,424	)		—
		(199,620	)		(6,362,177	)		(231,106,128	)		(289,287,693	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		474,310			(53,747,538	)		48,111,969			232,493,228
Investments in affiliated issuers		—			—			176			36,385
Futures contracts		—			—			—			2,156,112
Bond forward contracts		—			—			—			—
Options written		—			2,587,592			—			—
Swap contracts		—			—			—			—
Translation of assets and liabilities in foreign currencies		—			(457,295	)		(137,758	)		—
		474,310			(51,617,241	)		47,974,387			234,685,725
Net realized and unrealized gain (loss)		274,690			(57,979,418	)		(183,131,741	)		(54,601,968	)
Increase (decrease) in net assets from operations	$	283,183			($15,166,908	)		($43,674,627	)		($16,858,836	)

 

392

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

International Equity Index Fund	International Opportunities Fund			International Small Cap Fund			International Small Company Fund			International Value Fund			Investment Quality Bond Fund
$117,206	$	134,509		$	86,318		$	5,400		$	164,118		$	8,736,756
13,134,468		14,585,505			9,230,869			7,489,698			37,656,378			—
452,994		440,314			240,315			344,386			1,773,611			10,759
7,294		16,031			3,769			5,303			34,153			—
(1,248,453)		(1,179,365	)		(695,016	)		(552,995	)		(3,472,471	)		(6,047	)
12,463,509		13,996,994			8,866,255			7,291,792			36,155,789			8,741,468
1,900,815		5,503,108			2,491,683			2,250,239			8,049,829			1,004,017
—		—			—			—			—			—
—		11,120			34,896			—			123,669			28,368
58,797		106,329			38,983			40,851			162,333			29,528
40,720		42,001			35,057			42,784			47,949			58,530
—		—			—			—			—			—
13,808		455,224			360,792			186,387			805,978			83,926
6,716		10,446			5,014			5,128			16,038			3,523
25,604		20,682			9,457			15,952			28,557			7,190
18,903		—			—			—			—			—
4,308		5,441			1,746			5,915			12,809			1,173
2,069,671		6,154,351			2,977,628			2,547,256			9,247,162			1,216,255
—		—			—			—			(187,631	)		—
2,069,671		6,154,351			2,977,628			2,547,256			9,059,531			1,216,255
10,393,838		7,842,643			5,888,627			4,744,536			27,096,258			7,525,213
(87,336,442)		(273,893,589	)		(81,003,263	)		(133,540,860	)		(215,820,985	)		(3,928,965	)
13,982		5,387			3,700			5,543			53,049			—
(4,668,459)		—			—			—			—			276,563
—		—			—			—			—			(129,442	)
(531,227)		(967,515	)		(908,561	)		(82,326	)		(2,520,718	)		45,982
(92,522,146)		(274,855,717	)		(81,908,124	)		(133,617,643	)		(218,288,654	)		(3,735,862	)
3,386,5871		104,754,770			38,775,830			39,912,719			38,054,692			7,417,990
4,641		17,143			846			2,072			5,593			—
2,250,179		—			—			—			—			(16,655	)
—		—			—			—			—			(65,378	)
—		—			—			—			—			—
—		—			—			—			—			(32,190	)
846,349		86,681			292,951			27,213			500,106			(321,981	)
6,487,756		104,858,594			39,069,627			39,942,004			38,560,391			6,981,786
(86,034,390)		(169,997,123	)		(42,838,497	)		(93,675,639	)		(179,728,263	)		3,245,924
($75,640,552)		($162,154,480	)		($36,949,870	)		($88,931,103	)		($152,632,005	)	$	10,771,137

 

1 Net of $4,189 decrease in deferred India foreign withholding taxes.

 

393

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Investment income	Large Cap Fund			Large Cap Value Fund			Mid Cap Index Fund			Mid Cap Stock Fund
Interest	$	8,296		$	2,906		$	79,854		$	125,016
Dividends		4,344,934			12,424,634			5,709,830			4,153,051
Securities lending		31,848			166,495			626,910			669,915
Income from affiliated issuers		745			3,186			8,330			15,459
Less foreign taxes withheld		—			—			—			(28,779	)
Total investment income		4,385,823			12,597,221			6,424,924			4,934,662
Expenses
Investment management fees (Note 6)		1,521,050			3,847,273			1,624,660			4,385,876
Class 1 distribution and service fees (Note 6)		9,024			39,632			—			121,777
Accounting and legal services fees (Note 6)		33,362			83,375			59,345			92,429
Professional fees		31,304			36,366			31,924			36,599
Custodian fees		36,699			43,995			6,469			123,134
Trustees’ fees (Note 7)		4,188			8,364			5,345			8,611
Registration and filing fees		8,474			17,155			674			19,010
Miscellaneous		3,332			9,080			3,922			4,852
Total expenses		1,647,433			4,085,240			1,732,339			4,792,288
Net expense reduction (Note 6)		—			—			—			—
Net expenses		1,647,433			4,085,240			1,732,339			4,792,288
Net investment income (loss)		2,738,390			8,511,981			4,692,585			142,374
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(133,596,544	)		(207,964,581	)		(33,438,531	)		(217,305,220	)
Investments in affiliated issuers		3,796			3,168			545			2,753
Futures contracts		—			—			1,254,334			—
Options written		—			—			—			—
Short sales		—			—			—			—
Swap contracts		—			—			—			—
Foreign currency transactions		—			—			—			(284,828	)
		(133,592,748	)		(207,961,413	)		(32,183,652	)		(217,587,295	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		37,571,269			18,195,014			3,215,651			50,449,602
Investments in affiliated issuers		1,717			10,422			48,935			36,674
Futures contracts		—			—			1,407,214			—
Options written		—			—			—			—
Short sales		—			—			—			—
Swap contracts		—			—			—			—
Translation of assets and liabilities in foreign currencies		—			—			—			386
		37,572,986			18,205,436			4,671,800			50,486,662
Net realized and unrealized gain (loss)		(96,019,762	)		(189,755,977	)		(27,511,852	)		(167,100,633	)
Increase (decrease) in net assets from operations		($93,281,372	)		($181,243,996	)		($22,819,267	)		($166,958,259	)

 

394

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Mid Cap Value Equity Fund	Mid Value Fund			Natural Resources Fund			Real Estate Equity Fund			Real Estate Securities Fund			Real Return Bond Fund
$20,301	$	46,817		$	84,364		$	775,328		$	2,041		$	36,528,638
2,066,236		1,336,776			11,100,551			6,625,431			2,734,228			91,875
117,119		—			273,649			548,328			19,132			18,322
1,401		—			4,793			4,467			441			—
(11,380)		(4,485	)		(854,264	)	��	(22,461	)		(840	)		(7,156	)
2,193,677		1,379,108			10,609,093			7,931,093			2,755,002			36,631,679
748,318		818,664			4,909,920			1,467,342			465,181			5,561,942
—		—			54,798			—			33,227			25,096
13,576		16,978			79,039			28,604			10,393			140,985
28,122		37,814			35,696			32,746			29,582			90,504
15,352		18,159			166,700			27,557			13,606			229,429
2,084		422			8,211			3,480			1,958			12,787
5,260		3,533			8,053			8,047			4,440			21,505
388		414			3,849			3,016			498			10,797
813,100		895,984			5,266,266			1,570,792			558,885			6,093,045
—		(38,053	)		—			(59,174	)		—			—
813,100		857,931			5,266,266			1,511,618			558,885			6,093,045
1,380,577		521,177			5,342,827			6,419,475			2,196,117			30,538,634
(23,271,826)		1,138,748			(42,956,080	)		(122,917,035	)		(42,979,201	)		(37,524,768	)
(109)		—			34,808			(4,171	)		(1,469	)		—
—		—			—			—			—			22,787,246
—		—			—			—			—			1,139,914
—		—			—			—			—			(6,037,197	)
—		—			—			—			—			(27,984,623	)
287		4,990	��		(161,159	)		—			—			(1,743,100	)
(23,271,648)		1,143,738			(43,082,431	)		(122,921,206	)		(42,980,670	)		(49,362,528	)
16,317,996		45,956,833			(102,203,351	)		52,726,726			3,983,389			22,779,701
12,032		—			764			27,465			4,154			—
—		—			—			—			—			(3,579,664	)
—		—			—			—			—			1,431,015
—		—			—			—			—			4,099,846
—		—			—			—			—			5,901,006
(231)		—			3,387			—			—			(4,453,852	)
16,329,797		45,956,833			(102,199,200	)		52,754,191			3,987,543			26,178,052
(6,941,851)		47,100,571			(145,281,631	)		(70,167,015	)		(38,993,127	)		(23,184,476	)
($5,561,274)	$	47,621,748			($139,938,804	)		($63,747,540	)		($36,797,010	)	$	7,354,158

 

395

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Investment income	Short Term Government Income Fund			Small Cap Growth Fund			Small Cap Index Fund			Small Cap Opportunities Fund
Interest	$	254,129		$	8,567		$	23,720		$	5,992
Dividends		—			533,473			1,691,792			1,467,634
Securities lending		—			—			305,897			160,745
Income from affiliated issuers		—			—			10,892			10,087
Less foreign taxes withheld		—			(6,103	)		(497	)		(1,353	)
Total investment income		254,129			535,937			2,031,804			1,643,105
Expenses
Investment management fees (Note 6)		54,307			978,237			522,745			945,049
Class 1 distribution and service fees (Note 6)		—			—			—			17,205
Accounting and legal services fees (Note 6)		1,751			16,518			19,611			12,921
Professional fees		47,617			33,564			28,981			37,184
Custodian fees		8,288			44,662			8,339			95,573
Trustees’ fees (Note 7)		105			2,142			2,697			2,310
Registration and filing fees		3,374			3,849			7,122			5,499
Miscellaneous		264			241			991			2,152
Total expenses		115,706			1,079,213			590,486			1,117,893
Net expense reduction (Note 6)		(53,776	)		—			—			(50,756	)
Net expenses		61,930			1,079,213			590,486			1,067,137
Net investment income (loss)		192,199			(543,276	)		1,441,318			575,968
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		18,595			(11,307,366	)		(41,552,102	)		(31,281,100	)
Investments in affiliated issuers		—			—			1,900			821
Futures contracts		—			—			(1,882,455	)		601,028
Options written		—			—			—			—
Swap contracts		—			—			—			—
Foreign currency transactions		—			—			(7	)		2,741
		18,595			(11,307,366	)		(43,432,664	)		(30,676,510	)
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		38,510			23,011,053			23,336,781			10,575,072
Investments in affiliated issuers		—			—			8,450			3,168
Futures contracts		—			—			(430,520	)		—
Options written		—			—			—			—
Swap contracts		—			—			—			—
Translation of assets and liabilities in foreign currencies		—			—			—			—
		38,510			23,011,053			22,914,711			10,578,240
Net realized and unrealized gain (loss)		57,105			11,703,687			(20,517,953	)		(20,098,270	)
Increase (decrease) in net assets from operations	$	249,304		$	11,160,411			($19,076,635	)		($19,522,302	)

 

396

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Small Cap Value Fund	Small Company Growth Fund			Small Company Value Fund			Smaller Company Growth Fund			Spectrum Income Fund			Strategic Bond Fund
$2,691	$	10,613		$	99,222		$	7,968		$	47,068,117		$	29,786,623
354,947		661,294			6,532,255			670,101			5,197,049			189,711
—		377,508			371,980			64,250			173,989			51,685
—		9,778			24,916			—			2,767			494
—		—			(13,534	)		(2,284	)		(84,605	)		(39,557	)
357,638		1,059,193			7,014,839			740,035			52,357,317			29,988,956
233,143		1,251,903			3,869,765			1,137,322			6,331,652			2,940,105
—		—			45,076			—			—			17,416
4,706		18,170			64,442			19,102			148,464			75,327
32,463		29,637			34,140			34,012			77,424			66,503
11,264		40,355			77,253			163,152			579,365			137,337
1,113		2,883			6,915			2,356			14,247			7,539
3,773		5,663			7,166			4,861			15,122			17,880
48		1,903			2,691			518			12,234			3,443
286,510		1,350,514			4,107,448			1,361,323			7,178,508			3,265,550
—		—			(181,666	)		(120,081	)		(203,971	)		—
286,510		1,350,514			3,925,782			1,241,242			6,974,537			3,265,550
71,128		(291,321	)		3,089,057			(501,207	)		45,382,780			26,723,406
284,407		(31,274,145	)		(64,636,551	)		(7,325,256	)		(51,678,170	)		(18,841,646	)
—		(1,255	)		1,482			7,716			7,036			—
—		—			—			(57,213	)		771,691			10,332,827
—		—			—			—			9,821			2,416,035
—		—			—			—			305,446			—
—		—			(10,541	)		(24	)		(3,285,812	)		(2,176,057	)
284,407		(31,275,400	)		(64,645,610	)		(7,374,777	)		(53,869,988	)		(8,268,841	)
11,261,417		(2,619,962	)		(43,289,480	)		25,241,842			34,692,593			(2,250,567	)
—		19,702			31,543			1,443			605			467
—		—			—			4,181			(76,097	)		(1,225,806	)
—		—			—			—			—			161,771
—		—			—			—			3,195			—
—		—			—			—			(613,210	)		(37,328	)
11,261,417		(2,600,260	)		(43,257,937	)		25,247,466			34,007,086			(3,351,463	)
11,545,824		(33,875,660	)		(107,903,547	)		17,872,689			(19,862,902	)		(11,620,304	)
$11,616,952		($34,166,981	)		($104,814,490	)	$	17,371,482		$	25,519,878		$	15,103,102

 

397

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

Investment income	Strategic Income Fund			Total Bond Market Fund			Total Return Fund			U.S. Government Securities Fund
Interest	$	34,381,911		$	14,857,322		$	69,082,005		$	5,523,657
Dividends		30,687			—			1,190,775			8,791
Securities lending		46,601			155,198			8,520			10,137
Income from affiliated issuers		355			—			—			—
Less foreign taxes withheld		(10,905	)		(1,296	)		(5,468	)		—
Total investment income		34,448,649			15,011,224			70,275,832			5,542,585
Expenses
Investment management fees (Note 6)		2,746,881			1,693,381			10,338,502			943,738
Class 1 distribution and service fees (Note 6)		—			—			89,232			22,745
Accounting and legal services fees (Note 6)		68,880			62,200			262,447			25,927
Professional fees		51,330			38,716			103,466			56,916
Custodian fees		134,737			10,502			323,999			46,833
Trustees’ fees (Note 7)		6,989			5,706			23,710			3,383
Registration and filing fees		7,885			7,353			23,795			6,129
Tax expenses		285,105			—			—			—
Miscellaneous		10,461			1,937			25,517			1,108
Total expenses		3,312,268			1,819,795			11,190,668			1,106,779
Net expense reduction (Note 6)		—			��			—			—
Net expenses		3,312,268			1,819,795			11,190,668			1,106,779
Net investment income (loss)		31,136,381			13,191,429			59,085,164			4,435,806
Realized and unrealized gain (loss)
Net realized gain (loss) on
Investments in unaffiliated issuers		(3,339,909	)		8,620,296			39,685,909			2,484,305
Investments in affiliated issuers		—			—			—			—
Futures contracts		(2,176,395	)		—			48,542,989			3,137,215
Options written		694,561			—			(18,071,248	)		61,444
Short sales		—			—			(2,310,578	)		—
Swap contracts		—			—			(14,324,472	)		—
Foreign currency transactions		11,076,434			—			(84,066	)		—
		6,254,691			8,620,296			53,438,534			5,682,964
Change in net unrealized appreciation (depreciation) of
Investments in unaffiliated issuers		11,002,524			16,613,307			32,039,039			(466,551	)
Investments in affiliated issuers		—			67			—			125
Futures contracts		(197,920	)		—			(1,878,620	)		833,066
Options written		361,381			—			(1,880,909	)		(487,059	)
Short sales		—			—			157,444			—
Swap contracts		—			—			34,252,938			—
Translation of assets and liabilities in foreign currencies		(10,327,081	)		—			(2,450,227	)		—
		838,904			16,613,374			60,239,665			(120,419	)
Net realized and unrealized gain (loss)		7,093,595			25,233,670			113,678,199			5,562,545
Increase (decrease) in net assets from operations	$	38,229,976		$	38,425,099		$	172,763,363		$	9,998,351

 

398

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Operations — August 31, 2009

U.S. High Yield Bond Fund	U.S. Multi Sector Fund			Value Fund			Value & Restructuring Fund			Vista Fund
$53,911,171	$	50,208		$	3,184		$	55,092		$	6,191
32,416		16,211,200			878,051			10,732,455			570,396
21,791		123,898			9,141			142,589			136,067
26,697		3,542			—			11,708			945
—		—			—			(90,358	)		(7,117	)
53,992,075		16,388,848			890,376			10,851,486			706,482
3,790,462		4,964,181			314,535			3,297,731			937,801
7,823		—			—			—			—
94,886		96,690			8,538			70,467			16,985
49,021		36,573			27,329			38,032			28,352
82,915		120,677			8,554			59,571			38,125
8,261		10,261			1,352			6,994			2,244
13,163		8,705			7,184			19,005			9,534
—		—			—			—			—
3,789		3,394			142			8,188			918
4,050,320		5,240,481			367,634			3,499,988			1,033,959
—		—			—			—			—
4,050,320		5,240,481			367,634			3,499,988			1,033,959
49,941,755		11,148,367			522,742			7,351,498			(327,477	)
(26,443,442)		(124,309,561	)		(6,719,042	)		(129,629,591	)		(35,493,217	)
—		(15	)		171			2,240			100
—		(161,756	)		—			—			—
—		—			—			—			—
—		—			—			—			—
—		—			—			—			—
—		—			—			(2,681	)		185,746
(26,443,442)		(124,471,332	)		(6,718,871	)		(129,630,032	)		(35,307,371	)
22,459,071		10,263,720			16,473,724			(2,231,932	)		6,244,774
—		7,266			2,215			7,772			11,294
—		1,185,051			—			—			—
—		—			—			—			—
—		—			—			—			—
—		—			—			—			—
—		(509	)		—			774			(457	)
22,459,071		11,455,528			16,475,939			(2,223,386	)		6,255,611
(3,984,371)		(113,015,804	)		9,757,068			(131,853,418	)		(29,051,760	)
$45,957,384		($101,867,437	)	$	10,279,810			($124,501,920	)		($29,379,237	)

 

399

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Active Bond Fund						All Cap Core Fund						All Cap Growth Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/091			Year ended 8/31/08
From operations
Net investment income (loss)	$	33,277,642		$	29,493,014		$	5,976,579		$	7,416,817		$	769,699		$	42,427
Net realized gain (loss)		(3,888,883	)		5,847,375			(226,203,255	)		(66,244,881	)		(33,920,834	)		1,580,271
Change in net unrealized appreciation (depreciation)		13,439,347			(31,797,161	)		62,278,560			(17,748,169	)		6,288,981			(20,346,613	)
Increase (decrease) in net assets resulting from operations		42,828,106			3,543,228			(157,948,116	)		(76,576,233	)		(26,862,154	)		(18,723,915	)
Distributions to shareholders
From net investment income
Class 1		(1,806,425	)		(1,814,384	)		—			—			(301,947	)		(33,203	)
Class NAV		(30,207,339	)		(28,839,200	)		(7,243,920	)		(6,486,217	)		—			(136,768	)
From net realized gain
Class 1		(110,903	)		—			—			—			(991,475	)		(2,158,875	)
Class NAV		(1,887,681	)		—			(42,261	)		(26,614,213	)		—			(6,742,686	)
Total distributions		(34,012,348	)		(30,653,584	)		(7,286,181	)		(33,100,430	)		(1,293,422	)		(9,071,532	)
From Fund share transactions (Note 8)		(22,799,462	)		55,374,517			(73,629,766	)		343,669,788			(5,513,108	)		18,131,324
Total increase (decrease)		(13,983,704	)		28,264,161			(238,864,063	)		233,993,125			(33,668,684	)		(9,664,123	)
Net assets
Beginning of year		586,862,666			558,598,505			710,654,959			476,661,834			122,505,144			132,169,267
End of year	$	572,878,962		$	586,862,666		$	471,790,896		$	710,654,959		$	88,836,460		$	122,505,144
Undistributed net investment income (loss)	$	6,049,517		$	4,163,787		$	3,896,888		$	5,142,079		$	408,146		$	40,934

 

	All Cap Value Fund							Alpha Opportunities Fund			Alternative Asset Allocation Fund
Increase (decrease) in net assets	Year ended 8/31/09			��	Year ended 8/31/08			Period ended 8/31/092			Period ended 8/31/093
From operations
Net investment income (loss)	$	829,607			$	738,914		$	1,535,176		$	9,488
Net realized gain (loss)		(16,918,111	)			3,762,451			21,139,602			4,385
Change in net unrealized appreciation (depreciation)		32,879,741				(9,162,486	)		88,994,817			267,675
Increase (decrease) in net assets resulting from operations		16,791,237				(4,661,121	)		111,669,595			281,548
Distributions to shareholders
From net investment income
Class 1		(545,731	)			(322,363	)		—			—
Class NAV		(242,586	)			(936,959	)		(268,998	)		—
From net realized gain
Class 1		(1,708,782	)			(8,191,234	)		—			—
Class NAV		(700,297	)			(22,916,850	)		—			—
Total distributions		(3,197,396	)			(32,367,406	)		(268,998	)		—
From Fund share transactions (Note 8)		239,934,698				35,349,262			559,195,854			1,000,000
Total increase (decrease)		253,528,539				(1,679,265	)		670,596,451			1,281,548
Net assets
Beginning of year		94,387,395				96,066,660			—			—
End of year	$	347,915,934			$	94,387,395		$	670,596,451		$	1,281,548
Undistributed net investment income (loss)	$	581,703			$	540,843		$	1,601,736		$	10,195

 

1	Class NAV shares were terminated on 12-3-08.
2	Period from 10-7-08 (commencement of operations) to 8-31-09.
3	Period from 1-2-09 (commencement of operations) to 8-31-09.

 

400

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	American Diversified Growth & Income Portfolio						American Fundamental Holdings Portfolio						American Global Diversification Portfolio
Increase (decrease) in net assets	Year ended 8/31/09			Period ended 8/31/081			Year ended 8/31/09			Period ended 8/31/081			Year ended 8/31/09			Period ended 8/31/081
From operations
Net investment income (loss)	$	139,373		$	2,362		$	97,221		$	3,659		$	92,630		$	3,134
Net realized gain (loss)		(63,763	)		(36	)		(126,020	)		(40	)		(69,846	)		(51	)
Change in net unrealized appreciation (depreciation)		1,101,355			(27,310	)		835,208			(25,733	)		805,158			(52,309	)
Increase (decrease) in net assets resulting from operations		1,176,965			(24,984	)		806,409			(22,114	)		827,942			(49,226	)
Distributions to shareholders
From net investment income
Class 1		(47,109	)		—			(29,345	)		—			(34,804	)		—
Total distributions		(47,109	)		—			(29,345	)		—			(34,804	)		—
From Fund share transactions (Note 8)		9,418,620			1,002,513			6,169,961			1,001,830			5,985,450			1,001,799
Total increase (decrease)		10,548,476			977,529			6,947,025			979,716			6,778,588			952,573
Net assets
Beginning of year		977,529			—			979,716			—			952,573			—
End of year	$	11,526,005		$	977,529		$	7,926,741		$	979,716		$	7,731,161		$	952,573
Undistributed net investment income (loss)	$	94,750		$	2,443		$	71,689		$	3,740		$	61,040		$	3,214

 

	Blue Chip Growth Fund						Capital Appreciation Fund						Core Bond Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	3,159,690		$	5,734,415		$	3,027,282		$	3,870,347		$	10,722,672		$	12,549,051
Net realized gain (loss)		(415,946,731	)		(86,740,230	)		(183,868,533	)		(93,206,731	)		(1,001,882	)		3,571,383
Change in net unrealized appreciation (depreciation)		8,228,382			(78,715,503	)		83,159,619			17,409,818			13,230,169			(1,700,465	)
Increase (decrease) in net assets resulting from operations		(404,558,659	)		(159,721,318	)		(97,681,632	)		(71,926,566	)		22,950,959			14,419,969
Distributions to shareholders
From net investment income
Class 1		(371,815	)		(766,798	)		(204,967	)		(170,414	)		(278,883	)		(143,652	)
Class NAV		(3,992,625	)		(6,644,801	)		(3,728,929	)		(2,403,139	)		(10,263,625	)		(12,814,067	)
From net realized gain
Class 1		—			(962,777	)		—			—			(34,762	)		—
Class NAV		—			(7,396,503	)		—			—			(1,384,740	)		—
Total distributions		(4,364,440	)		(15,770,879	)		(3,933,896	)		(2,573,553	)		(11,962,010	)		(12,957,719	)
From Fund share transactions (Note 8)		(217,844,461	)		530,669,682			211,386,573			457,104,102			138,409,490			1,432,757
Total increase (decrease)		(626,767,560	)		355,177,485			109,771,045			382,603,983			149,398,439			2,895,007
Net assets
Beginning of year		2,041,691,470			1,686,513,985			1,034,587,532			651,983,549			271,848,173			268,953,166
End of year	$	1,414,923,910		$	2,041,691,470		$	1,144,358,577		$	1,034,587,532		$	421,246,612		$	271,848,173
Undistributed net investment income (loss)	$	1,544,987		$	2,720,774		$	2,109,200		$	3,036,422		$	3,166,924		$	2,245,056

 

1 Period from 7-1-08 (commencement of operations) to 8-31-08.

 

401

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Emerging Markets Value Fund						Emerging Small Company Fund						Equity-Income Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	9,387,957		$	11,006,267			($132,347	)		($136,089	)	$	19,223,008		$	19,849,693
Net realized gain (loss)		(20,013,645	)		13,439,266			(19,666,256	)		(9,056,005	)		(217,376,675	)		72,569,551
Change in net unrealized appreciation (depreciation)		234,463,172			(106,355,012	)		(1,048,241	)		(926,662	)		71,623,070			(208,599,184	)
Increase (decrease) in net assets resulting from operations		223,837,484			(81,909,479	)		(20,846,844	)		(10,118,756	)		(126,530,597	)		(116,179,940	)
Distributions to shareholders
From net investment income
Class 1		—			—			—			—			(3,754,027	)		(3,363,159	)
Class NAV		(11,522,806	)		(4,245,986	)		—			—			(17,840,719	)		(13,034,344	)
From net realized gain
Class 1		—			—			—			—			(11,259,896	)		(9,699,757	)
Class NAV		(10,123,376	)		(4,524,645	)		—			—			(52,423,854	)		(36,512,245	)
Total distributions		(21,646,182	)		(8,770,631	)		—			—			(85,278,496	)		(62,609,505	)
From Fund share transactions (Note 8)		257,601,060			185,431,742			(25,870,220	)		29,879,189			47,220,845			191,910,595
Total increase (decrease)		459,792,362			94,751,632			(46,717,064	)		19,760,433			(164,588,248	)		13,121,150
Net assets
Beginning of year		577,226,559			482,474,927			75,118,535			55,358,102			936,657,800			923,536,650
End of year	$	1,037,018,921		$	577,226,559		$	28,401,471		$	75,118,535		$	772,069,552		$	936,657,800
Undistributed net investment income (loss)	$	6,576,109		$	8,982,960				—		—		$	11,937,438		$	14,331,149

 

	Fundamental Value Fund						Global Agribusiness Fund			Global Bond Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Period ended 8/31/091			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	13,307,678		$	12,121,435		$	11,110		$	20,844,047		$	34,332,555
Net realized gain (loss)		(298,551,901	)		(21,583,098	)		(8,965	)		(9,705,894	)		99,578,956
Change in net unrealized appreciation (depreciation)		15,198,908			(157,896,166	)		291,266			22,707,102			(58,957,988	)
Increase (decrease) in net assets resulting from operations		(270,045,315	)		(167,357,829	)		293,411			33,845,255			74,953,523
Distributions to shareholders
From net investment income
Class A		—			—			(3,919	)		—			—
Class I		—			—			(5,119	)		—			—
Class 1		(1,121,380	)		(823,974	)		—			(7,974,069	)		(2,457,157	)
Class NAV		(13,340,051	)		(11,149,819	)		—			(59,477,604	)		(38,950,086	)
From net realized gain
Class 1		—			(723,847	)		—			(5,137,229	)		(351,410	)
Class NAV		—			(9,327,751	)		—			(38,284,136	)		(5,770,886	)
Total distributions		(14,461,431	)		(22,025,391	)		(9,038	)		(110,873,038	)		(47,529,539	)
From Fund share transactions (Note 8)		77,311,711			765,613,566			2,009,038			139,104,424			(240,431,909	)
Total increase (decrease)		(207,195,035	)		576,230,346			2,293,411			62,076,641			(213,007,925	)
Net assets
Beginning of year		1,606,932,123			1,030,701,777			—			583,469,333			796,477,258
End of year	$	1,399,737,088		$	1,606,932,123		$	2,293,411		$	645,545,974		$	583,469,333
Undistributed net investment income (loss)	$	8,055,331		$	8,749,270		$	9,844		$	36,035,786		$	67,914,018

 

1 Period from 1-2-09 (commencement of operations) to 8-31-09.

 

402

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Global Infrastructure Fund			Global Real Estate Fund						Global Timber Fund
Increase (decrease) in net assets	Period ended 8/31/091			Year ended 8/31/09			Year ended 8/31/08			Period ended 8/31/091
From operations
Net investment income (loss)	$	41,217		$	12,985,503		$	10,233,076		$	8,493
Net realized gain (loss)		(67,784	)		(282,118,604	)		(60,742,191	)		(199,620	)
Change in net unrealized appreciation (depreciation)		107,109			129,921,295			(88,508,349	)		474,310
Increase (decrease) in net assets resulting from operations		80,542			(139,211,806	)		(139,017,464	)		283,183
Distributions to shareholders
From net investment income
Class A		(11,386	)		—			—			(3,924	)
Class I		(12,389	)		—			—			(4,959	)
Class NAV		—			(16,836,266	)		(15,864,602	)		—
From net realized gain
Class NAV		—			—			(19,979,185	)		—
Total distributions		(23,775	)		(16,836,266	)		(35,843,787	)		(8,883	)
From Fund share transactions (Note 8)		2,023,775			(180,090,406	)		316,900,623			2,008,883
Total increase (decrease)		2,080,542			(336,138,478	)		142,039,372			2,283,183
Net assets
Beginning of year		—			607,520,766			465,481,394			—
End of year	$	2,080,542		$	271,382,288		$	607,520,766		$	2,283,183
Undistributed net investment income (loss)	$	11,678			($3,984,100	)		($10,064,073	)		($13,084	)

 

	High Income Fund						High Yield Fund						Index 500 Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	42,812,510		$	36,487,023		$	139,457,114		$	143,721,892		$	37,743,132		$	9,277,275
Net realized gain (loss)		(6,362,177	)		390,874			(231,106,128	)		(49,294,944	)		(289,287,693	)		(2,712,965	)
Change in net unrealized appreciation (depreciation)		(51,617,241	)		(103,415,198	)		47,974,387			(132,358,751	)		234,685,725			(88,002,102	)
Increase (decrease) in net assets resulting from operations		(15,166,908	)		(66,537,301	)		(43,674,627	)		(37,931,803	)		(16,858,836	)		(81,437,792	)
Distributions to shareholders
From net investment income
Class 1		—			—			(4,779,611	)		(4,000,047	)		—			—
Class NAV		(57,336,025	)		(32,124,850	)		(145,505,694	)		(135,304,218	)		(19,527,458	)		(1,589,435	)
From net realized gain
Class 1		—			—			—			(385,041	)		—			—
Class NAV		—			(17,438,389	)		—			(13,137,830	)		—			(891,159	)
Total distributions		(57,336,025	)		(49,563,239	)		(150,285,305	)		(152,827,136	)		(19,527,458	)		(2,480,594	)
From Fund share transactions (Note 8)		39,364,255			180,497,609			(394,945,975	)		150,797,853			932,914,788			961,007,984
Total increase (decrease)		(33,138,678	)		64,397,069			(588,905,907	)		(39,961,086	)		896,528,494			877,089,598
Net assets
Beginning of year		447,471,429			383,074,360			1,554,262,170			1,594,223,256			960,568,255			83,478,657
End of year	$	414,332,751		$	447,471,429		$	965,356,263		$	1,554,262,170		$	1,857,096,749		$	960,568,255
Undistributed net investment income (loss)	$	9,044,845		$	10,300,286		$	24,556,159		$	28,189,658		$	26,530,273		$	8,294,366

 

1 Period from 1-2-09 (commencement of operations) to 8-31-09.

 

403

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	International Equity Index Fund						International Opportunities Fund						International Small Cap Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	10,393,838		$	12,729,797		$	7,842,643		$	11,637,820		$	5,888,627		$	7,484,241
Net realized gain (loss)		(92,522,146	)		1,811,913			(274,855,717	)		(19,344,659	)		(81,908,124	)		32,515,105
Change in net unrealized appreciation (depreciation)		6,487,756			(83,204,504	)		104,858,594			(91,757,890	)		39,069,627			(146,182,370	)
Increase (decrease) in net assets resulting from operations		(75,640,552	)		(68,662,794	)		(162,154,480	)		(99,464,729	)		(36,949,870	)		(106,183,024	)
Distributions to shareholders
From net investment income
Class 1		—			—			(262,865	)		(437,162	)		(1,173,970	)		(1,899,697	)
Class NAV		(8,358,950	)		(11,320,080	)		(7,768,599	)		(9,599,874	)		(3,432,685	)		(11,236,985	)
From net realized gain
Class 1		—			—			—			(4,266,920	)		(8,585,143	)		(9,217,495	)
Class NAV		(1,033,001	)		(11,293,901	)		—			(89,874,604	)		(23,899,352	)		(53,605,686	)
Total distributions		(9,391,951	)		(22,613,981	)		(8,031,464	)		(104,178,560	)		(37,091,150	)		(75,959,863	)
From Fund share transactions (Note 8)		(86,562,483	)		163,669,149			30,613,474			293,056,257			(32,530,355	)		67,764,421
Total increase (decrease)		(171,594,986	)		72,392,374			(139,572,470	)		89,412,968			(106,571,375	)		(114,378,466	)
Net assets
Beginning of year		493,525,002			421,132,628			876,105,635			786,692,667			341,968,522			456,346,988
End of year	$	321,930,016		$	493,525,002		$	736,533,165		$	876,105,635		$	235,397,147		$	341,968,522
Undistributed net investment income (loss)	$	8,803,775		$	7,049,015		$	6,875,924		$	8,030,794		$	3,716,975		$	3,343,840

 

	International Small Company Fund						International Value Fund						Investment Quality Bond Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	4,744,536		$	5,110,208		$	27,096,258		$	45,971,457		$	7,525,213		$	8,739,054
Net realized gain (loss)		(133,617,643	)		9,408,069			(218,288,654	)		39,194,856			(3,735,862	)		683,057
Change in net unrealized appreciation (depreciation)		39,942,004			(94,379,932	)		38,560,391			(356,784,333	)		6,981,786			(1,730,838	)
Increase (decrease) in net assets resulting from operations		(88,931,103	)		(79,861,655	)		(152,632,005	)		(271,618,020	)		10,771,137			7,691,273
Distributions to shareholders
From net investment income
Class 1		—			—			(11,284,532	)		(8,744,111	)		(2,970,213	)		(2,493,124	)
Class NAV		(4,954,284	)		(3,533,975	)		(32,872,675	)		(22,709,292	)		(6,244,366	)		(6,973,371	)
From net realized gain
Class 1		—			—			(8,224,740	)		(24,440,545	)		(176,827	)		—
Class NAV		(7,543,866	)		(20,201,831	)		(23,598,716	)		(60,940,195	)		(328,395	)		—
Total distributions		(12,498,150	)		(23,735,806	)		(75,980,663	)		(116,834,143	)		(9,719,801	)		(9,466,495	)
From Fund share transactions (Note 8)		(178,177,475	)		257,541,409			(48,835,899	)		570,525,682			(17,569,700	)		38,325,070
Total increase (decrease)		(279,606,728	)		153,943,948			(277,448,567	)		182,073,519			(16,518,364	)		36,549,848
Net assets
Beginning of year		404,433,713			250,489,765			1,425,431,995			1,243,358,476			202,478,183			165,928,335
End of year	$	124,826,985		$	404,433,713		$	1,147,983,428		$	1,425,431,995		$	185,959,819		$	202,478,183
Undistributed net investment income (loss)	$	3,883,755		$	3,525,164		$	19,206,932		$	38,789,188		$	2,169,358		$	2,073,231

 

404

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Large Cap Fund						Large Cap Value Fund						Mid Cap Index Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	2,738,390		$	4,841,394		$	8,511,981		$	7,116,338		$	4,692,585		$	3,388,967
Net realized gain (loss)		(133,592,748	)		(6,228,049	)		(207,961,413	)		(45,727,621	)		(32,183,652	)		7,099,900
Change in net unrealized appreciation (depreciation)		37,572,986			(47,381,165	)		18,205,436			(47,559,985	)		4,671,800			(31,460,300	)
Increase (decrease) in net assets resulting from operations		(93,281,372	)		(48,767,820	)		(181,243,996	)		(86,171,268	)		(22,819,267	)		(20,971,433	)
Distributions to shareholders
From net investment income
Class 1		(450,141	)		(257,735	)		(1,419,786	)		(1,088,495	)		—			—
Class NAV		(4,320,722	)		(3,474,434	)		(6,469,691	)		(4,134,688	)		(3,808,565	)		(5,261,952	)
From net realized gain
Class 1		—			(742,791	)		—			(3,182,040	)		—			—
Class NAV		—			(9,483,403	)		—			(11,433,685	)		(5,520,506	)		(34,100,080	)
Total distributions		(4,770,863	)		(13,958,363	)		(7,889,477	)		(19,838,908	)		(9,329,071	)		(39,362,032	)
From Fund share transactions (Note 8)		(64,372,095	)		74,322,840			(24,060,683	)		293,840,437			206,764,941			(36,175,540	)
Total increase (decrease)		(162,424,330	)		11,596,657			(213,194,156	)		187,830,261			174,616,603			(96,509,005	)
Net assets
Beginning of year		389,735,591			378,138,934			729,928,127			542,097,866			331,519,120			428,028,125
End of year	$	227,311,261		$	389,735,591		$	516,733,971		$	729,928,127		$	506,135,723		$	331,519,120
Undistributed net investment income (loss)	$	1,345,630		$	3,378,128		$	5,818,716		$	5,196,212		$	3,031,479		$	2,040,126

 

	Mid Cap Stock Fund						Mid Cap Value Equity Fund						Mid Value Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Period ended 8/31/091
From operations
Net investment income (loss)	$	142,374			($762,120	)	$	1,380,577		$	843,867		$	521,177
Net realized gain (loss)		(217,587,295	)		(28,049,061	)		(23,271,648	)		1,347,500			1,143,738
Change in net unrealized appreciation (depreciation)		50,486,662			(23,481,263	)		16,329,797			(15,636,889	)		45,956,833
Increase (decrease) in net assets resulting from operations		(166,958,259	)		(52,292,444	)		(5,561,274	)		(13,445,522	)		47,621,748
Distributions to shareholders
From net investment income
Class NAV		(143,548	)		(6,183	)		(860,608	)		(1,379,541	)		—
From net realized gain
Class 1		—			(20,871,703	)		—			—			—
Class NAV		—			(25,672,835	)		(2,090,507	)		(2,670,475	)		—
Total distributions		(143,548	)		(46,550,721	)		(2,951,115	)		(4,050,016	)		—
From Fund share transactions (Note 8)		153,831,922			323,242,797			79,929,647			(20,937,552	)		252,907,183
Total increase (decrease)		(13,269,885	)		224,399,632			71,417,258			(38,433,090	)		300,528,931
Net assets
Beginning of year		726,890,755			502,491,123			90,577,265			129,010,355			—
End of year	$	713,620,870		$	726,890,755		$	161,994,523		$	90,577,265		$	300,528,931
Undistributed net investment income (loss)		($284,416	)		($261	)	$	902,413		$	435,483		$	540,573

 

1 Period from 1-2-09 (commencement of operations) to 8-31-09.

 

405

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Natural Resources Fund						Real Estate Equity Fund						Real Estate Securities Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	5,342,827		$	3,514,706		$	6,419,475		$	5,481,675		$	2,196,117		$	2,666,345
Net realized gain (loss)		(43,082,431	)		159,764,997			(122,921,206	)		(7,298,990	)		(42,980,670	)		(4,086,997	)
Change in net unrealized appreciation (depreciation)		(102,199,200	)		(84,031,928	)		52,754,191			(24,348,780	)		3,987,543			(9,670,435	)
Increase (decrease) in net assets resulting from operations		(139,938,804	)		79,247,775			(63,747,540	)		(26,166,095	)		(36,797,010	)		(11,091,087	)
Distributions to shareholders
From net investment income
Class 1		(903,381	)		(693,182	)		—			—			(2,120,378	)		(2,208,590	)
Class NAV		(3,140,924	)		(3,982,326	)		(6,680,797	)		(2,823,624	)		—			—
From net realized gain
Class 1		(28,207,156	)		(33,008,423	)		—			—			(761,479	)		(19,854,117	)
Class NAV		(90,071,704	)		(173,286,281	)		(322,646	)		(27,686,897	)		—			—
Total distributions		(122,323,165	)		(210,970,212	)		(7,003,443	)		(30,510,521	)		(2,881,857	)		(22,062,707	)
From Fund share transactions (Note 8)		259,991,565			(40,086,142	)		15,115,547			66,553,526			2,320,825			846,804
Total increase (decrease)		(2,270,404	)		(171,808,579	)		(55,635,436	)		9,876,910			(37,358,042	)		(32,306,990	)
Net assets
Beginning of year		670,758,699			842,567,278			264,345,507			254,468,597			112,509,156			144,816,146
End of year	$	668,488,295		$	670,758,699		$	208,710,071		$	264,345,507		$	75,151,114		$	112,509,156
Undistributed net investment income (loss)	$	3,558,867		$	2,421,592		$	3,112,521		$	2,886,732		$	1,095,405		$	851,642

 

	Real Return Bond Fund						Short Term Government Income Fund		Small Cap Growth Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Period ended 8/31/091		Period ended 8/31/092
From operations
Net investment income (loss)	$	30,538,634		$	40,301,998		$	192,199		($543,276	)
Net realized gain (loss)		(49,362,528	)		88,101,003			18,595		(11,307,366	)
Change in net unrealized appreciation (depreciation)		26,178,052			(6,838,467	)		38,510		23,011,053
Increase (decrease) in net assets resulting from operations		7,354,158			121,564,534			249,304		11,160,411
Distributions to shareholders
From net investment income
Class 1		(1,623,687	)		(1,297,783	)		—		—
Class NAV		(26,198,106	)		(44,378,716	)		—		—
From net realized gain
Class 1		(5,295,910	)		—			—		—
Class NAV		(83,622,785	)		—			—		—
Total distributions		(116,740,488	)		(45,676,499	)		—		—
From Fund share transactions (Note 8)		362,227,633			(180,097,919	)		24,552,014		110,680,420
Total increase (decrease)		252,841,303			(104,209,884	)		24,801,318		121,840,831
Net assets
Beginning of year		865,266,457			969,476,341			—		—
End of year	$	1,118,107,760		$	865,266,457		$	24,801,318	$	121,840,831
Undistributed net investment income (loss)	$	15,759,815		$	6,118,884		$	192,199			—

 

1	Period from 1-2-09 (commencement of operations) to 8-31-09.
2	Period from 9-10-08 (commencement of operations) to 8-31-09.

 

406

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Small Cap Index Fund						Small Cap Opportunities Fund						Small Cap Value Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Period ended 8/31/091
From operations
Net investment income (loss)	$	1,441,318		$	1,205,814		$	575,968		$	2,912,442		$	71,128
Net realized gain (loss)		(43,432,664	)		545,892			(30,676,510	)		(15,085,950	)		284,407
Change in net unrealized appreciation (depreciation)		22,914,711			(5,294,252	)		10,578,240			(24,787,124	)		11,261,417
Increase (decrease) in net assets resulting from operations		(19,076,635	)		(3,542,546	)		(19,522,302	)		(36,960,632	)		11,616,952
Distributions to shareholders
From net investment income
Class 1		—			—			(644,449	)		(468,564	)		—
Class NAV		(1,183,230	)		(1,373,444	)		(1,156,381	)		(2,939,801	)		—
From net realized gain
Class 1		—			—			—			(96,019	)		—
Class NAV		(2,172,703	)		(13,262,451	)		—			(582,069	)		—
Total distributions		(3,355,933	)		(14,635,895	)		(1,800,830	)		(4,086,453	)		—
From Fund share transactions (Note 8)		(2,659,270	)		54,173,157			(2,752,832	)		(64,742,970	)		67,774,027
Total increase (decrease)		(25,091,838	)		35,994,716			(24,075,964	)		(105,790,055	)		79,390,979
Net assets
Beginning of year		125,396,979			89,402,263			122,362,934			228,152,989			—
End of year	$	100,305,141		$	125,396,979		$	98,286,970		$	122,362,934		$	79,390,979
Undistributed net investment income (loss)	$	929,719		$	666,572		$	76,712		$	1,206,817		$	71,159

 

	Small Company Growth Fund						Small Company Value Fund						Smaller Company Growth Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Period ended 8/31/092
From operations
Net investment income (loss)		($291,321	)		($1,055,834	)	$	3,089,057		$	2,692,995			($501,207	)
Net realized gain (loss)		(31,275,400	)		(9,465,233	)		(64,645,610	)		12,998,479			(7,374,777	)
Change in net unrealized appreciation (depreciation)		(2,600,260	)		(4,348,417	)		(43,257,937	)		(10,448,671	)		25,247,466
Increase (decrease) in net assets resulting from operations		(34,166,981	)		(14,869,484	)		(104,814,490	)		5,242,803			17,371,482
Distributions to shareholders
From net investment income
Class 1		—			—			(705,825	)		(222,418	)		—
Class NAV		—			—			(2,552,856	)		(744,875	)		—
From net realized gain
Class 1		—			—			(1,898,513	)		(5,895,273	)		—
Class NAV		—			(5,101,160	)		(6,341,535	)		(15,211,967	)		—
Total distributions		—			(5,101,160	)		(11,498,729	)		(22,074,533	)		—
From Fund share transactions (Note 8)		(12,539,071	)		(19,705,369	)		(72,321,420	)		105,563,520			141,102,419
Total increase (decrease)		(46,706,052	)		(39,676,013	)		(188,634,639	)		88,731,790			158,473,901
Net assets
Beginning of year		168,638,084			208,314,097			551,785,638			463,053,848			—
End of year	$	121,932,032		$	168,638,084		$	363,150,999		$	551,785,638		$	158,473,901
Undistributed net investment income (loss)			—		—		$	1,734,451		$	1,527,971				—

 

1	Period from 12-16-08 (commencement of operations) to 8-31-09.
2	Period from 10-7-08 (commencement of operations) to 8-31-09.

 

407

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	Spectrum Income Fund						Strategic Bond Fund						Strategic Income Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	45,382,780		$	48,237,025		$	26,723,406		$	31,627,122		$	31,136,381		$	27,098,160
Net realized gain (loss)		(53,869,988	)		14,223,211			(8,268,841	)		(7,411,128	)		6,254,691			236,765
Change in net unrealized appreciation (depreciation)		34,007,086			(42,785,417	)		(3,351,463	)		(43,488,104	)		838,904			(11,980,838	)
Increase (decrease) in net assets resulting from operations		25,519,878			19,674,819			15,103,102			(19,272,110	)		38,229,976			15,354,087
Distributions to shareholders
From net investment income
Class 1		—			—			(2,069,660	)		(2,551,211	)		—			—
Class NAV		(51,188,074	)		(49,435,145	)		(24,442,301	)		(27,235,607	)		(46,773,982	)		(17,879,553	)
From net realized gain
Class NAV		(6,910,163	)		(13,144,565	)		—			—			(3,769,121	)		—
Total distributions		(58,098,237	)		(62,579,710	)		(26,511,961	)		(29,786,818	)		(50,543,103	)		(17,879,553	)
From Fund share transactions (Note 8)		(131,930,129	)		128,986,711			973,826			88,183,979			(593,277	)		43,230,126
Total increase (decrease)		(164,508,488	)		86,081,820			(10,435,033	)		39,125,051			(12,906,404	)		40,704,660
Net assets
Beginning of year		1,065,319,921			979,238,101			507,794,899			468,669,848			463,398,018			422,693,358
End of year	$	900,811,433		$	1,065,319,921		$	497,359,866		$	507,794,899		$	450,491,614		$	463,398,018
Undistributed net investment income (loss)	$	7,645,068		$	14,174,697		$	10,874,264		$	4,216,645		$	8,880,952		$	12,731,682

 

		Total Bond Market Fund						Total Return Fund						U.S. Government Securities Fund
Increase (decrease) in net assets		Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)		$	13,191,429		$	2,529,989		$	59,085,164		$	78,660,144		$	4,435,806		$	7,791,741
Net realized gain (loss)			8,620,296			298,341			53,438,534			89,447,833			5,682,964			7,518,588
Change in net unrealized appreciation (depreciation)			16,613,374			158,580			60,239,665			(42,587,558	)		(120,419	)		(17,907,410	)
Increase (decrease) in net assets resulting from operations			38,425,099			2,986,910			172,763,363			125,520,419			9,998,351			(2,597,081	)
Distributions to shareholders
From net investment income
Class 1			—			—			(8,616,623	)		(6,614,250	)		(1,543,466	)		(1,815,027	)
Class NAV			(11,485,817	)		(2,693,946	)		(70,323,046	)		(80,286,067	)		(3,882,438	)		(6,587,552	)
From net realized gain
Class 1			—			—			(11,365,707	)		(495,243	)		(3,352,004	)		—
Class NAV	��		(304,093	)		—			(86,535,514	)		(6,450,737	)		(7,773,674	)		—
Total distributions			(11,789,910	)		(2,693,946	)		(176,840,890	)		(93,846,297	)		(16,551,582	)		(8,402,579	)
From Fund share transactions (Note 8)			360,251,044			5,769,779			(55,163,845	)		281,992,597			(52,561,542	)		14,233,841
Total increase (decrease)			386,886,233			6,062,743			(59,241,372	)		313,666,719			(59,114,773	)		3,234,181
Net assets
Beginning of year			59,645,911			53,583,168			1,839,942,429			1,526,275,710			200,071,903			196,837,722
End of year		$	446,532,144		$	59,645,911		$	1,780,701,057		$	1,839,942,429		$	140,957,130		$	200,071,903
Undistributed net investment income (loss)		$	3,059,919		$	454,429		$	31,549,313		$	28,478,791		$	1,249,184		$	1,254,817

 

408

The accompanying notes are an integral part of the financial statements.

John Hancock Funds II
Statements of Changes in Net Assets

	U.S. High Yield Bond Fund						U.S. Multi Sector Fund						Value Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	49,941,755		$	33,607,297		$	11,148,367		$	17,184,937		$	522,742		$	147,750
Net realized gain (loss)		(26,443,442	)		(12,338,501	)		(124,471,332	)		(95,771,164	)		(6,718,871	)		(1,900,897	)
Change in net unrealized appreciation (depreciation)		22,459,071			(17,383,730	)		11,455,528			(70,990,120	)		16,475,939			(26,909	)
Increase (decrease) in net assets resulting from operations		45,957,384			3,885,066			(101,867,437	)		(149,576,347	)		10,279,810			(1,780,056	)
Distributions to shareholders
From net investment income
Class 1		(1,205,635	)		(356,799	)		—			—			—			—
Class NAV		(43,524,775	)		(32,343,832	)		(14,280,412	)		(20,111,627	)		(228,535	)		(78,757	)
From net realized gain
Class 1		—			(1,227	)		—			—			—			—
Class NAV		—			(108,977	)		—			(51,023,810	)		—			(887,906	)
Total distributions		(44,730,410	)		(32,810,835	)		(14,280,412	)		(71,135,437	)		(228,535	)		(966,663	)
From Fund share transactions (Note 8)		246,718,372			161,404,114			81,571,831			(398,563,374	)		86,144,497			14,699,422
Total increase (decrease)		247,945,346			132,478,345			(34,576,018	)		(619,275,158	)		96,195,772			11,952,703
Net assets
Beginning of year		529,240,140			396,761,795			904,481,580			1,523,756,738			25,882,936			13,930,233
End of year	$	777,185,486		$	529,240,140		$	869,905,562		$	904,481,580		$	122,078,708		$	25,882,936
Undistributed net investment income (loss)	$	12,323,026		$	6,381,964		$	7,868,932		$	11,000,977		$	411,804		$	123,620

 

	Value & Restructuring Fund						Vista Fund
Increase (decrease) in net assets	Year ended 8/31/09			Year ended 8/31/08			Year ended 8/31/09			Year ended 8/31/08
From operations
Net investment income (loss)	$	7,351,498		$	5,374,787			($327,477	)		($803,131	)
Net realized gain (loss)		(129,630,032	)		(30,752,578	)		(35,307,371	)		19,700,707
Change in net unrealized appreciation (depreciation)		(2,223,386	)		(3,948,215	)		6,255,611			(25,585,922	)
Increase (decrease) in net assets resulting from operations		(124,501,920	)		(29,326,006	)		(29,379,237	)		(6,688,346	)
Distributions to shareholders
From net investment income
Class NAV		(5,685,628	)		(6,082,341	)		(159,632	)		—
From net realized gain
Class NAV		—			(1,434,023	)		(14,136,636	)		(12,751,169	)
Total distributions		(5,685,628	)		(7,516,364	)		(14,296,268	)		(12,751,169	)
From Fund share transactions (Note 8)		76,111,651			209,779,765			153,175,866			(36,329,850	)
Total increase (decrease)		(54,075,897	)		172,937,395			109,500,361			(55,769,365	)
Net assets
Beginning of year		568,196,665			395,259,270			113,811,702			169,581,067
End of year	$	514,120,768		$	568,196,665		$	223,312,063		$	113,811,702
Undistributed net investment income (loss)	$	5,014,623		$	3,347,033		$	86			($367	)

 

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)			Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Active Bond Fund
CLASS 1
08-31-2009	9.12		0.52		0.20		0.72			(0.51	)	(0.03	)	—	(0.54	)		9.30	8.68	5		33	0.71		0.71		6.10		90	6
08-31-2008	9.54		0.47		(0.40	)	0.07			(0.49	)	—		—	(0.49	)		9.12	0.72	5		33	0.72		0.72		4.97		133	6
08-31-2007	9.60		0.47		(0.06	)	0.41			(0.47	)	—	7	—	(0.47	)		9.54	4.38	5		36	0.73		0.73		4.92		165	6
08-31-20062	9.61		0.36		(0.11	)	0.25			(0.26	)	—		—	(0.26	)		9.60	2.68	3,5		37	0.79	4	0.79	4	4.27	4	406
CLASS NAV
08-31-2009	9.12		0.52		0.20		0.72			(0.51	)	(0.03	)	—	(0.54	)		9.30	8.73	5		540	0.66		0.66		6.15		90	6
08-31-2008	9.53		0.47		(0.38	)	0.09			(0.50	)	—		—	(0.50	)		9.12	0.88	5		554	0.67		0.67		5.02		133	6
08-31-2007	9.60		0.48		(0.07	)	0.41			(0.48	)	—	7	—	(0.48	)	��	9.53	4.34	5		523	0.68		0.68		4.99		165	6
08-31-20062	9.58		0.35		(0.06	)	0.29			(0.27	)	—		—	(0.27	)		9.60	3.09	3,5		399	0.70	4	0.70	4	4.30	4	406
1. Based on the average of the shares outstanding. 2. Class 1 and Class NAV shares began operations on 10-15-05 and 10-27-05, respectively. 3. Not annualized. 4. Annualized. 5. Assumes dividend reinvestment. 6. The Portfolio turnover rates, including the effect of “TBA” (to be announced) securities for the periods ended, were as follows: 154% for 8-31-09, 255% for 8-31-08 and 299% for 8-31-07. The year 8-31-06 ended includes the effect of TBA transactions. 7. Less than $0.01 per share.
All Cap Core Fund
CLASS NAV
08-31-2009	9.22		0.10		(1.98	)	(1.88	)		(0.13	)	—	5	—	(0.13	)		7.21	(20.07	)6		472	0.83		0.83		1.52		196
08-31-2008	11.06		0.11		(1.31	)	(1.20	)		(0.13	)	(0.51	)	—	(0.64	)		9.22	(11.50	)6		711	0.80		0.80		1.14		239
08-31-2007	9.92		0.12		1.06		1.18			(0.03	)	(0.01	)	—	(0.04	)		11.06	11.93	6		477	0.83		0.83		1.12		244
08-31-20062	10.00		0.05		(0.13	)	(0.08	)		—		—		—	—			9.92	(0.80	)3		284	0.84	4	0.84	4	1.42	4	86
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. Less than $0.01 per share. 6. Assumes dividend reinvestment.
All Cap Growth Fund
CLASS 1
08-31-2009	15.54		0.09		(3.83	)	(3.74	)		(0.04	)	(0.12	)	—	(0.16	)		11.64	(23.94	)5		89	1.01		1.01		0.87		168
08-31-2008	19.28		—	6	(2.45	)	(2.45	)		(0.02	)	(1.27	)	—	(1.29	)		15.54	(13.81	)5		28	0.98		0.98		(0.01	)	111
08-31-2007	16.43		0.01		2.85		2.86			(0.01	)	—		—	(0.01	)		19.28	17.41	5		33	0.97		0.97		0.07		102
08-31-20062	15.50		0.01		0.93		0.94			(0.01	)	—		—	(0.01	)		16.43	6.05	3,5		32	1.00	4	1.00	4	0.08	4	106
1. Based on the average of the shares outstanding. 2. Class 1 shares began operations on 10-15-05. 3. Not annualized. 4. Annualized. 5. Assumes dividend reinvestment. 6. Less than $0.01 per share.
All Cap Value Fund
CLASS 1
08-31-2009	11.19		0.06		(1.72	)	(1.66	)		(0.06	)	(0.19	)	—	(0.25	)		9.28	(14.42	)5		84	0.96		0.96		0.67		93
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	11.14		0.04		(1.68	)	(1.64	)		(0.07	)	(0.19	)	—	(0.26	)		9.24	(14.34	)5		264	0.91		0.91		0.48		93
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
Alpha Opportunities Fund
CLASS NAV
08-31-20092	10.00		0.03		0.85		0.88			(0.01	)	—		—	(0.01	)		10.87	8.80	3,5		671	1.08	4	1.08	4	0.42	4	207
1. Based on the average of the shares outstanding. 2. Class NAV shares began operation on 10-7-08. 3. Not annualized. 4. Annualized. 5. Assumes dividend reinvestment.

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 ($)		From net realized gain ($)	From capital paid-in ($)	Total distri- butions ($)			Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Alternative Asset Allocation Fund
CLASS A
08-31-20092	10.00		0.10	3	2.72		2.82			—		—	—	—			12.82	28.20	4,5,6		1	6.78	7	0.55	7,8,9	1.33	3,7	1
1. Based on the average of the shares outstanding. 2. Class A shares began operations on 1-2-09. 3. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying funds in which the Fund invests. 4. Assumes dividend reinvestment. 5. Total returns would have been lower had certain expenses not been reduced during the periods shown. 6. Not annualized. 7. Annualized. 8. 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 Fund. The range of expense ratios of the underlying funds held by the Funds was as follows:
Period ended																Range
8/31/09																0.71% – 1.18
9. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.
American Diversified Growth & Income Portfolio
CLASS 1
08-31-2009	9.75		0.25	2	(1.39	)5	(1.14	)		(0.11	)	—	—	(0.11	)		8.50	(11.47	)3,4		12	1.04		0.06	7,8	3.08	2	6
08-31-20089	10.00		0.02	2	(0.27	)	(0.25	)		—		—	—	—			9.75	(2.50	)10		1	15.51	11	0.08	7,8,11	1.43	2,11	—	6
1. Based on the average of the shares outstanding. 2. 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. 3. Assumes dividend reinvestment. 4. Total returns would have been lower had certain expenses not been reduced during the periods shown. 5. 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. 6. Less than 1%. 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:
Period ended																Range
8-31-2009																0.37% – 0.79
8-31-2008																0.32% – 0.71
8. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6. 9. Class 1 shares began operations on 7-1-08. 10. Not annualized. 11. Annualized.
American Fundamental Holdings Portfolio
CLASS 1
08-31-2009	9.78		0.26	5	(1.13	)8	(0.87	)		(0.14	)	—	—	(0.14	)		8.77	(8.64	)6,7		8	1.42		0.06	10,11	3.12	5	17
08-31-20082	10.00		0.04	5	(0.26	)	(0.22	)		—		—	—	—			9.78	(2.20	)3		1	15.48	4	0.08	4,10,11	2.21	4,5	—	9
1. Based on the average of the shares outstanding. 2. Class 1 shares began operations on 7-1-08. 3. Not annualized. 4. Annualized. 5. 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. 6. Assumes dividend reinvestment. 7. Total returns would have been lower had certain expenses not been reduced during the periods shown. 8. 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. 9. Less than 1%. 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:
Period ended																Range
8-31-2009																0.37% – 0.51
8-31-2008																0.32% – 0.50
11. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.
American Global Diversification Portfolio
CLASS 1
08-31-2009	9.51		0.26	5	(1.07	)7	(0.81	)		(0.16	)	—	—	(0.16	)		8.54	(8.11	)6		8	1.55		0.06	8,9	3.33	5	11
08-31-20082	10.00		0.03	5	(0.52	)	(0.49	)		—		—	—	—			9.51	(4.90	)3		1	15.70	4	0.08	4,8,9	1.92	4,5	—	10
1. Based on the average of the shares outstanding. 2. Class 1 shares began operations on 7-1-08. 3. Not annualized. 4. Annualized. 5. 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. 6. Assumes dividend reinvestment. 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. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6. 9. 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:
Period ended																Range
8-31-2009																0.37% – 0.79
8-31-2008																0.33% – 0.71
10. Less than 1%.

411

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 ($)			From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)				Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Blue Chip Growth Fund
CLASS 1
08-31-2009	19.07		0.03		(3.46	)	(3.43	)		(0.04	)		—		—	(0.04	)	15.60	(17.95	)5,6			153	0.90		0.87	9	0.19		68
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	19.06		0.03		(3.45	)	(3.42	)		(0.05	)		—		—	(0.05	)	15.59	(17.90	)5,6			1,262	0.85		0.82	9	0.25		68
08-31-2008	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
08-31-2007	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
08-31-20062	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
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. 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. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.
Capital Appreciation Fund
CLASS 1
08-31-2009	10.14		0.02		(1.28	)	(1.26	)		(0.04	)		—		—	(0.04	)	8.84	(12.37	)5			53	0.81		0.81		0.32		85
08-31-2008	10.79		0.04		(0.66	)	(0.62	)		(0.03	)		—		—	(0.03	)	10.14	(5.80	)5			61	0.80		0.80		0.34		85
08-31-2007	9.44		0.03		1.33		1.36			(0.01	)		—		—	(0.01	)	10.79	14.43	5			66	0.81		0.81		0.27		63
08-31-20062	9.20		0.01		0.23		0.24			—			—		—	—		9.44	2.61	3,5			68	0.88	4	0.88	4	0.10	4	57
CLASS NAV
08-31-2009	10.16		0.03		(1.30	)	(1.27	)		(0.04	)		—		—	(0.04	)	8.85	(12.39	)5			1,091	0.76		0.76		0.36		85
08-31-2008	10.80		0.04		(0.65	)	(0.61	)		(0.03	)		—		—	(0.03	)	10.16	(5.65	)5			973	0.75		0.75		0.41		85
08-31-2007	9.45		0.04		1.32		1.36			(0.01	)		—		—	(0.01	)	10.80	14.42	5			586	0.76		0.76		0.34		63
08-31-20062	9.20		0.01		0.24		0.25			—			—		—	—		9.45	2.72	3,5			393	0.83	4	0.83	4	0.15	4	57
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.
Core Bond Fund
CLASS 1
08-31-2009	12.59		0.52		0.65		1.17			(0.57	)		(0.10	)	—	(0.67	)	13.09	9.71	5			10	0.76		0.76		4.20		571
08-31-2008	12.51		0.56		0.11		0.67			(0.59	)		—		—	(0.59	)	12.59	5.43	5			4	0.80		0.80		4.46		395	7
08-31-2007	12.52		0.58		(0.02	)	0.56			(0.57	)		—	6	—	(0.57	)	12.51	4.60	5			2	0.82		0.82		4.67		313	7
08-31-20062	12.51		0.47		(0.12	)	0.35			(0.34	)		—		—	(0.34	)	12.52	2.86	3,5			1	0.88	4	0.88	4	4.39	4	436
CLASS NAV
08-31-2009	12.58		0.53		0.63		1.16			(0.57	)		(0.10	)	—	(0.67	)	13.07	9.69	5			411	0.71		0.71		4.29		571
08-31-2008	12.50		0.57		0.10		0.67			(0.59	)		—		—	(0.59	)	12.58	5.49	5			267	0.75		0.75		4.51		395	7
08-31-2007	12.51		0.59		(0.02	)	0.57			(0.58	)		—	6	—	(0.58	)	12.50	4.67	5			267	0.77		0.77		4.71		313	7
08-31-20062	12.50		0.46		(0.11	)	0.35			(0.34	)		—		—	(0.34	)	12.51	2.90	3,5			197	0.83	4	0.83	4	4.24	4	436
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. Less than $0.01 per share. 7. The Portfolio turnover rates including the effect of ″TBA″ (to be announced) for the periods ended were as follows: 1,220% for 8-31-09, 807% for 8-31-08 and 623% for 8-31-07. The year ended 8-31-2006 includes the effect of TBA transactions.
Emerging Markets Value Fund
CLASS NAV
08-31-2009	9.47		0.10		(0.19	)	(0.09	)		(0.16	)		(0.13	)	—	(0.29	)	9.09	1.07	2			1,037	1.07		1.07		1.39		39
08-31-2008	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
08-31-20073	10.00		0.08		0.94		1.02			—			—		—	—		11.02	10.20	4			482	1.10	5	1.10	5	2.14	5	2
1. Based on the average of the shares outstanding. 2. Assumes dividend reinvestment. 3. Class NAV shares began operations on 5-1-07. 4. Not annualized. 5. Annualized.

412

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Emerging Small Company Fund
CLASS 1
08-31-2009	26.43		(0.08	)	(4.85	)	(4.93	)		—		—		—	—		21.50	(18.65	)		28	1.32		1.32		(0.44	)	156
08-31-2008	31.14		(0.07	)	(4.64	)	(4.71	)		—		—		—	—		26.43	(15.13	)2		37	1.13	3	1.12		(0.23	)	115
08-31-2007	28.97		(0.17	)	5.39		5.22			—		(3.05	)	—	(3.05	)	31.14	19.30	2,4		48	1.07	3	1.07		(0.56	)	88
08-31-20065	28.17		(0.16	)	0.96		0.80			—		—		—	—		28.97	2.84	2,6		52	1.30	3,7	1.13	7	(0.57	)7	207
1. Based on the average of the shares outstanding. 2. Total returns would have been lower had certain expenses not been reduced during the periods shown. 3. Does not take into consideration expense reductions during the periods shown. 4. Assumes dividend reinvestment. 5. Class 1 shares began operations on 10-15-05. 6. Not annualized. 7. Annualized.
Equity-Income Fund
CLASS 1
08-31-2009	16.11		0.29		(3.04	)	(2.75	)		(0.38	)	(1.13	)	—	(1.51	)	11.85	(15.65	)5,6		139	0.91		0.88		2.73		56
08-31-2008	19.52		0.36		(2.52	)	(2.16	)		(0.32	)	(0.93	)	—	(1.25	)	16.11	(11.83	)5,6		163	0.89	7	0.86		2.06		30
08-31-2007	18.13		0.33		2.22		2.55			(0.30	)	(0.86	)	—	(1.16	)	19.52	14.37	5,6		212	0.89	7	0.86		1.70		20
08-31-20062	16.03		0.26		1.90		2.16			(0.06	)	—		—	(0.06	)	18.13	13.52	3,5,6		183	0.90	4,7	0.89	4	1.68	4	39
CLASS NAV
08-31-2009	16.10		0.29		(3.04	)	(2.75	)		(0.39	)	(1.13	)	—	(1.52	)	11.83	(15.68	)5,6		633	0.86		0.83		2.77		56
08-31-2008	19.51		0.37		(2.52	)	(2.15	)		(0.33	)	(0.93	)	—	(1.26	)	16.10	(11.79	)5,6		774	0.84	7	0.81		2.14		30
08-31-2007	18.11		0.34		2.22		2.56			(0.30	)	(0.86	)	—	(1.16	)	19.51	14.46	5,6		711	0.84	7	0.81		1.75		20
08-31-20062	16.01		0.27		1.89		2.16			(0.06	)	—		—	(0.06	)	18.11	13.54	3,5,6		535	0.85	4,7	0.84	4	1.75	4	39
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.
Fundamental Value Fund
CLASS 1
08-31-2009	15.37		0.12		(3.02	)	(2.90	)		(0.15	)	—		—	(0.15	)	12.32	(18.72	)5		101	0.86		0.86		1.13		40
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	15.35		0.13		(3.03	)	(2.90	)		(0.16	)	—		—	(0.16	)	12.29	(18.75	)5		1,299	0.81		0.81		1.19		40
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
Global Agribusiness Fund
CLASS A
08-31-20092	10.00		0.04		1.41		1.45			(0.04	)	—		—	(0.04	)	11.41	14.52	3,4,5		1	4.72	7	1.45	6,7	0.58	7	84
CLASS I
08-31-20092	10.00		0.07		1.41		1.48			(0.05	)	—		—	(0.05	)	11.43	14.84	3,4,5		1	4.42	7	1.00	6,7	1.03	7	84
1. Based on the average of the shares outstanding. 2. Class A and Class I shares began operations on 1-2-09. 3. Assumes dividend reinvestment. 4. Not annualized. 5. Total returns would have been lower had certain expenses not been reduced during the periods shown. 6. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6. 7. Annualized.
Global Bond Fund
CLASS 1
08-31-2009	15.05		0.47		0.02		0.49			(1.90	)	(1.23	)	—	(3.13	)	12.41	6.02	5		59	0.87		0.87		3.98		448	6
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	15.02		0.47		0.03		0.50			(1.90	)	(1.23	)	—	(3.13	)	12.39	6.14	5		586	0.82		0.82		4.00		448	6
08-31-2008	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
08-31-2007	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
08-31-20062	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
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: 735% for the year ended 8-31-2009, 1,190% for the year ended 8-31-2008 and 914% for the year ended 8-31-2007. 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.

413

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Global Infrastructure Fund
CLASS A
08-31-20092	10.00		0.19	0.18		0.37			(0.11	)	—		—	(0.11	)	10.26	3.85	3,4,5		1	5.69	6	1.45	6,7	3.17	6	39
CLASS I
08-31-20092	10.00		0.22	0.18		0.40			(0.12	)	—		—	(0.12	)	10.28	4.16	3,4,5		1	5.39	6	1.00	6,7	3.62	6	39
1. Based on the average of the shares outstanding. 2. Class A and I shares began operations on 1-2-09. 3. Assumes dividend reinvestment. 4. Not annualized. 5. Total returns would have been lower had certain expenses not been reduced during the periods shown. 6. Annualized. 7. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.
Global Real Estate Fund
CLASS NAV
08-31-2009	8.15		0.17	(1.87	)	(1.70	)		(0.21	)	—		—	(0.21	)	6.24	(20.28	)5		271	1.09		1.09		3.30		130
08-31-2008	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
08-31-2007	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
08-31-20062	10.00		0.06	0.24		0.30			—		—		—	—		10.30	3.00	3		355	1.09	4	1.09	4	1.65	4	87
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.
Global Timber Fund
CLASS A
08-31-20092	10.00		0.03	1.36		1.39			(0.04	)	—		—	(0.04	)	11.35	13.98	4,6,7		1	5.30	5	1.45	3,5	0.48	5	67
CLASS I
08-31-20092	10.00		0.06	1.36		1.42			(0.05	)	—		—	(0.05	)	11.37	14.31	4,6,7		1	5.00	5	1.00	3,5	0.93	5	67
1. Based on the average of the shares outstanding. 2. Class A and I shares began operations on 1-2-09. 3. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6. 4. Not annualized. 5. Annualized. 6. Total returns would have been lower had certain expenses not been reduced during the periods shown. 7. Assumes dividend reinvestment.
High Income Fund
CLASS NAV
08-31-2009	7.98		0.65	(1.34	)	(0.69	)		(0.91	)	—		—	(0.91	)	6.38	(5.78	)5		414	0.73		0.73		12.15		68
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
High Yield Fund
CLASS 1
08-31-2009	8.81		0.81	(0.73	)	0.08			(0.89	)	—		—	(0.89	)	8.00	3.66	5		60	0.76		0.76		11.73		75
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	8.77		0.83	(0.75	)	0.08			(0.90	)	—		—	(0.90	)	7.95	3.62	5		906	0.71		0.71		12.18		75
08-31-2008	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
08-31-2007	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
08-31-20062	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
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: 80% for the year ended 8-31-2007.
Index 500 Fund
CLASS NAV
08-31-2009	9.47		0.15	(1.93	)	(1.78	)		(0.06	)	—		—	(0.06	)	7.63	(18.66	)2		1,857	0.49		0.49		2.26		37
08-31-2008	10.80		0.17	(1.42	)	(1.25	)		(0.05	)	(0.03	)	—	(0.08	)	9.47	(11.69	)2		961	0.49		0.49		1.71		2
08-31-20073	10.00		0.17	0.67		0.84			(0.04	)	—		—	(0.04	)	10.80	8.41	2,4,5		83	0.58	6,7	0.51	6	1.93	6	3
1. Based on the average of the shares outstanding. 2. Assumes dividend reinvestment. 3. Class NAV shares began operations on 10-27-06. 4. Not annualized. 5. Total returns would have been lower had certain expenses not been reduced during the periods shown. 6. Annualized. 7. Does not take into consideration expense reductions during the periods shown.

414

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
International Equity Index Fund
CLASS NAV
08-31-2009	18.53		0.37	(3.08	)	(2.71	)		(0.28	)	(0.03	)	—	(0.31	)	15.51	(14.15	)5		322	0.58		0.58		2.91		36
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
International Opportunities Fund
CLASS 1
08-31-2009	15.16		0.12	(3.20	)	(3.08	)		(0.13	)	—		—	(0.13	)	11.95	(20.11	)5		29	1.03		1.03		1.20		135
08-31-2008	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
08-31-2007	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
08-31-20062	13.71		0.11	3.01		3.12			(0.70	)	—		—	(0.70	)	16.13	23.36	3,5,6		9	1.07	4	1.07	4	0.78	4	99
CLASS NAV
08-31-2009	15.19		0.13	(3.21	)	(3.08	)		(0.14	)	—		—	(0.14	)	11.97	(20.06	)5		708	0.98		0.98		1.26		135
08-31-2008	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
08-31-2007	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
08-31-20062	13.72		0.10	3.04		3.14			(0.70	)	—		—	(0.70	)	16.16	23.51	3,5,6		552	1.02	4	1.02	4	0.73	4	99
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 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.
International Small Cap Fund
CLASS 1
08-31-2009	15.71		0.20	(2.43	)	(2.23	)		(0.16	)	(1.17	)	—	(1.33	)	12.15	(9.88	)5		116	1.23		1.23		2.16		56
08-31-2008	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
08-31-2007	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
08-31-20062	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
08-31-2009	15.72		0.23	(2.48	)	(2.25	)		(0.16	)	(1.17	)	—	(1.33	)	12.14	(9.94	)5		120	1.18		1.18		2.43		56
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
International Small Company Fund
CLASS NAV
08-31-2009	8.49		0.11	(1.24	)	(1.13	)		(0.10	)	(0.15	)	—	(0.25	)	7.11	(12.23	)5		125	1.09		1.09		2.03		26
08-31-2008	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
08-31-2007	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
08-31-20062	10.00		0.04	(0.71	)	(0.67	)		—		—		—	—		9.33	(6.70	)3		221	1.14	4	1.14	4	1.37	4	57
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.
International Value Fund
CLASS 1
08-31-2009	15.68		0.29	(2.09	)	(1.80	)		(0.51	)	(0.38	)	—	(0.89	)	12.99	(9.96	)5,6		294	0.98		0.96	8	2.69		46
08-31-2008	19.73		0.55	(3.25	)	(2.70	)		(0.36	)	(0.99	)	—	(1.35	)	15.68	(15.08	)5,6		372	0.99	7	0.98		3.07		21
08-31-2007	17.91		0.45	2.93		3.38			(0.46	)	(1.10	)	—	(1.56	)	19.73	19.45	5,6		162	1.00	7	0.98		2.32		24
08-31-20062	15.20		0.46	2.30		2.76			(0.05	)	—		—	(0.05	)	17.91	18.22	3,5,6		134	1.01	4,7	0.99	4	3.17	4	59
CLASS NAV
08-31-2009	15.64		0.30	(2.08	)	(1.78	)		(0.52	)	(0.38	)	—	(0.90	)	12.96	(9.85	)5,6		854	0.93		0.91	8	2.78		46
08-31-2008	19.70		0.53	(3.23	)	(2.70	)		(0.37	)	(0.99	)	—	(1.36	)	15.64	(15.09	)5,6		1,053	0.94	7	0.92		2.94		21
08-31-2007	17.88		0.47	2.91		3.38			(0.46	)	(1.10	)	—	(1.56	)	19.70	19.50	5,6		1,081	0.95	7	0.93		2.42		24
08-31-20062	15.16		0.47	2.30		2.77			(0.05	)	—		—	(0.05	)	17.88	18.35	3,5,6		836	0.96	4,7	0.94	4	3.21	4	59
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. 8. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.

415

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 ($)			From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)				Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Investment Quality Bond Fund
CLASS 1
08-31-2009	11.62			0.49		0.40		0.89			(0.60	)		(0.04	)	—	(0.64	)	11.87	8.16	5			64	0.75		0.75		4.45		35
08-31-2008	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
08-31-2007	11.76	��		0.56		(0.04	)	0.52			(0.58	)		—	6	—	(0.58	)	11.70	4.49	5			43	0.78		0.78		4.77		37
08-31-20062	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
CLASS NAV
08-31-2009	11.61			0.50		0.39		0.89			(0.60	)		(0.04	)	—	(0.64	)	11.86	8.23	5			122	0.70		0.70		4.47		35
08-31-2008	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
08-31-2007	11.75			0.56		(0.04	)	0.52			(0.58	)		—	6	—	(0.58	)	11.69	4.56	5			123	0.73		0.73		4.83		37
08-31-20062	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
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. Less than $0.01 per share.
Large Cap Fund
CLASS 1
08-31-2009	13.69			0.12		(3.13	)	(3.01	)		(0.24	)		—		—	(0.24	)	10.44	(21.66	)2			21	0.86		0.86		1.33		114
08-31-2008	16.12			0.18		(2.06	)	(1.88	)		(0.14	)		(0.41	)	—	(0.55	)	13.69	(12.04	)2			26	0.80		0.80		1.20		55
08-31-2007	14.67			0.19		1.78		1.97			(0.13	)		(0.39	)	—	(0.52	)	16.12	13.59	2			31	0.81		0.81		1.15		29
08-31-20063	13.26			0.11		1.31		1.42			(0.01	)		—		—	(0.01	)	14.67	10.73	2,4			2	0.93	5	0.93	5	0.86	5	24
CLASS NAV
08-31-2009	13.70			0.13		(3.14	)	(3.01	)		(0.25	)		—		—	(0.25	)	10.44	(21.65	)2			206	0.81		0.81		1.36		114
08-31-2008	16.13			0.18		(2.05	)	(1.87	)		(0.15	)		(0.41	)	—	(0.56	)	13.70	(11.99	)2			363	0.75		0.75		1.26		55
08-31-2007	14.67			0.18		1.80		1.98			(0.13	)		(0.39	)	—	(0.52	)	16.13	13.67	2			348	0.76		0.76		1.11		29
08-31-20063	13.26			0.12		1.31		1.43			(0.02	)		—		—	(0.02	)	14.67	10.79	2,4			192	0.88	5	0.88	5	0.95	5	24
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.
Large Cap Value Fund
CLASS 1
08-31-2009	21.99			0.28		(6.00	)	(5.72	)		(0.27	)		—		—	(0.27	)	16.00	(25.96	)5			84	0.91		0.91		1.82		180
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	22.03			0.28		(5.99	)	(5.71	)		(0.29	)		—		—	(0.29	)	16.03	(25.90	)5			433	0.86		0.86		1.80		180
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
Mid Cap Index Fund
CLASS NAV
08-31-2009	18.37			0.17		(3.69	)	(3.52	)		(0.13	)		(0.19	)	—	(0.32	)	14.53	(18.69	)5			506	0.50		0.50		1.36		35
08-31-2008	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
08-31-2007	18.37			0.27	6	2.65		2.92			(0.08	)		(0.03	)	—	(0.11	)	21.18	15.93	5			428	0.51		0.51		1.32	6	64
08-31-20062	16.85			0.17		1.38		1.55			(0.03	)		—		—	(0.03	)	18.37	9.20	3,5,7			172	0.56	4,8	0.56	4	1.14	4	10
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. Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund/Portfolio which amounted to the following amounts:
													Per share									Percentage of average net assets
Class NAV													$0.06									0.28
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.

416

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 ($)			From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)				Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Mid Cap Stock Fund
CLASS 1
08-31-2009	16.90		—	8	(4.45	)	(4.45	)		—			—		—	—		12.45	(26.33	)5			266	0.94		0.94		0.01		170
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	16.93		—	8	(4.46	)	(4.46	)		—	8		—		—	—	8	12.47	(26.30	)5			447	0.89		0.89		0.04		170
08-31-2008	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
08-31-2007	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
08-31-20062	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
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/Portfolio 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.
Mid Cap Value Equity Fund
CLASS NAV
08-31-2009	9.86		0.10		(2.30	)	(2.20	)		(0.08	)		(0.20	)	—	(0.28	)	7.38	(21.56	)5			162	0.95		0.95		1.61		50
08-31-2008	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
08-31-2007	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
08-31-20062	10.00		0.03		(0.38	)	(0.35	)		—			—		—	—		9.65	(3.50	)3			98	1.02	4	1.02	4	0.79	4	24
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.
Mid Value Fund
CLASS NAV
08-31-20092	10.00		0.05		2.56		2.61			—			—		—	—		12.61	26.10	3,4			301	1.10	5	1.05	5	0.64	5	30
1. Based on the average of the shares outstanding. 2. Class NAV shares began operations on 1-2-09. 3. Not annualized. 4. Total returns would have been lower had certain expenses not been reduced during the periods shown. 5. Annualized.
Natural Resources Fund
CLASS 1
08-31-2009	35.15		0.18		(11.42	)	(11.24	)		(0.19	)		(6.06	)	—	(6.25	)	17.66	(27.25	)5			139	1.11		1.11		1.06		56
08-31-2008	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
08-31-2007	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
08-31-20062	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
CLASS NAV
08-31-2009	35.01		0.18		(11.37	)	(11.19	)		(0.21	)		(6.06	)	—	(6.27	)	17.55	(27.20	)5			529	1.06		1.06		1.10		56
08-31-2008	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
08-31-2007	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
08-31-20062	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
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.
Real Estate Equity Fund
CLASS NAV
08-31-2009	8.52		0.18		(3.15	)	(2.97	)		(0.19	)		(0.01	)	—	(0.20	)	5.35	(34.63	)5,6			209	0.93		0.90	9	3.81		95
08-31-2008	10.82		0.20		(1.24	)	(1.04	)		(0.12	)		(1.14	)	—	(1.26	)	8.52	(9.91	)5,6			264	0.91	7	0.87		2.20		27
08-31-2007	10.99		0.28		(0.12	)8	0.16			(0.17	)		(0.16	)	—	(0.33	)	10.82	1.28	5,6			254	0.90	7	0.87		2.41		55
08-31-20062	10.00		0.08		0.91		0.99			—			—		—	—		10.99	9.90	3,5			275	0.92	4,7	0.90	4	2.29	4	50
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. 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. 8. 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. 9. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.

417

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Real Estate Securities Fund
CLASS 1
08-31-2009	13.60		0.26		(4.79	)	(4.53	)		(0.26	)	(0.09	)	—	(0.35	)	8.72	(33.01	)5		75	0.84		0.84		3.30		130
08-31-2008	17.80		0.32		(1.57	)	(1.25	)		(0.30	)	(2.65	)	—	(2.95	)	13.60	(7.58	)5		113	0.82		0.82		2.18		74
08-31-2007	29.94		0.50		1.52		2.02			(0.93	)	(13.23	)	—	(14.16	)	17.80	4.30	5		145	0.80		0.80		2.25		87
08-31-20062	23.03		0.64		6.46		7.10			(0.16	)	(0.03	)	—	(0.19	)	29.94	30.96	3,5		171	0.82	4	0.82	4	2.76	4	199
1. Based on the average of the shares outstanding. 2. Class 1 shares began operations on 10-15-05. 3. Not annualized. 4. Annualized. 5. Assumes dividend reinvestment.
Real Return Bond Fund
CLASS 1
08-31-2009	14.15		0.42		(0.55	)	(0.13	)		(0.42	)	(1.50	)	—	(1.92	)	12.10	0.99	5		60	0.79		0.79		3.59		629	6
08-31-2008	13.17		0.60		1.03		1.63			(0.65	)	—		—	(0.65	)	14.15	12.64	5		46	0.80		0.80		4.26		992	6
08-31-2007	13.41		0.55		(0.29	)	0.26			(0.46	)	(0.04	)	—	(0.50	)	13.17	1.97	5,7		19	0.79	8	0.79		4.16		197	6
08-31-20062	13.52		0.53		(0.24	)	0.29			(0.40	)	—	9	—	(0.40	)	13.41	2.27	3,5		17	0.80	4	0.80	4	4.52	4	216
CLASS NAV
08-31-2009	14.03		0.43		(0.55	)	(0.12	)		(0.42	)	(1.50	)	—	(1.92	)	11.99	1.11	5		1,058	0.74		0.74		3.72		629	6
08-31-2008	13.07		0.60		1.02		1.62			(0.66	)	—		—	(0.66	)	14.03	12.63	5		819	0.75		0.75		4.30		992	6
08-31-2007	13.32		0.59		(0.34	)	0.25			(0.46	)	(0.04	)	—	(0.50	)	13.07	1.95	5,7		951	0.74	8	0.74		4.53		197	6
08-31-20062	13.43		0.55		(0.26	)	0.29			(0.40	)	—	9	—	(0.40	)	13.32	2.32	5		684	0.75	4	0.75	4	4.75	4	216
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: 772% for the year ended 8-31-2009, 1,192% for the year ended 8-31-2008 and 230% for the year ended 8-31-2007. The year ended 8-31-2006 includes the effect of TBA transactions. 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.
Short Term Government Income Fund
CLASS NAV
08-31-20092	10.00		0.13		0.01		0.14			—		—		—	—		10.14	1.40	3		25	1.21	4,5	0.65	4	2.02	4	177
1. Based on the average of the shares outstanding. 2. Class NAV shares began operations on 1-2-09. 3. Not annualized. 4. Annualized. 5. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.
Small Cap Growth Fund
CLASS NAV
08-31-20092	10.00		(0.04	)	(1.58	)	(1.62	)		—		—		—	—		8.38	(16.20	)3		122	1.18	4	1.18	4	(0.59	)4	214
1. Based on the average of the shares outstanding. 2. Class NAV shares began operation on 9-10-08. 3. Not annualized. 4. Annualized.
Small Cap Index Fund
CLASS NAV
08-31-2009	12.96		0.11		(2.95	)	(2.84	)		(0.09	)	(0.15	)	—	(0.24	)	9.88	(21.60	)5		100	0.55		0.55		1.33		101
08-31-2008	17.03		0.19		(1.04	)	(0.85	)		(0.30	)	(2.92	)	—	(3.22	)	12.96	(5.60	)5,6		125	0.56	7	0.56		1.39		86
08-31-2007	15.95		0.20		1.50		1.70			(0.13	)	(0.49	)	—	(0.62	)	17.03	10.70	5,6		89	0.54	7	0.54		1.19		40
08-31-20062	14.05		0.12		1.80		1.92			(0.02	)	—		—	(0.02	)	15.95	13.69	3,5,6		125	0.58	4,7	0.56	4	0.92	4	40
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. Total returns would have been lower had certain expenses not been reduced during the periods shown. 7. Does not take into consideration expense reductions during the periods shown.
Small Cap Opportunities Fund
CLASS 1
08-31-2009	18.87		0.06		(3.57	)	(3.51	)		(0.22	)	—		—	(0.22	)	15.14	(18.28	)5,7		45	1.21		1.16	9	0.49		108
08-31-2008	23.45		0.35		(4.53	)	(4.18	)		(0.33	)	(0.07	)	—	(0.40	)	18.87	(18.09	)5,7		25	1.11	8	1.11		1.62		81
08-31-2007	23.24		0.32		0.83		1.15			(0.31	)	(0.63	)	—	(0.94	)	23.45	4.85	5,7		35	1.09	8	1.09		1.32		48
08-31-20062	21.36		0.21		1.72		1.93			(0.05	)	—	6	—	(0.05	)	23.24	9.04	3,5,7		30	1.10	4	1.10	4	1.01	4	59
CLASS NAV
08-31-2009	18.79		0.09		(3.58	)	(3.49	)		(0.23	)	—		—	(0.23	)	15.07	(18.24	)5,7		54	1.16		1.11	9	0.68		108
08-31-2008	23.35		0.47		(4.62	)	(4.15	)		(0.34	)	(0.07	)	—	(0.41	)	18.79	(18.04	)5,7		97	1.06	8	1.06		1.68		81
08-31-2007	23.14		0.34		0.81		1.15			(0.31	)	(0.63	)	—	(0.94	)	23.35	4.88	5,7		194	1.04	8	1.04		1.37		48
08-31-20062	21.26		0.22		1.71		1.93			(0.05	)	—	6	—	(0.05	)	23.14	9.09	3,5,7		217	1.05	4	1.05	4	1.05	4	59
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. Less than $0.01 per share. 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 Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.

418

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)	Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Small Cap Value Fund
CLASS NAV
08-31-20092	10.00		0.03		2.47		2.50			—		—		—	—		12.50	25.00	3		79	1.32	4	1.32	4	0.33	4	9
1. Based on the average of the shares outstanding. 2. Class NAV shares began operations on 12-16-08. 3. Not annualized. 4. Annualized.
Small Company Growth Fund
CLASS NAV
08-31-2009	11.95		(0.02	)	(2.42	)	(2.44	)		—		—		—	—		9.51	(20.42	)		122	1.13		1.13		(0.24	)	77
08-31-2008	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
08-31-2007	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
08-31-20062	10.00		(0.08	)	1.17		1.09			—		—		—	—		11.09	10.90	3		74	1.16	4	1.16	4	(0.83	)4	49
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.
Small Company Value Fund
CLASS 1
08-31-2009	24.91		0.13		(4.83	)	(4.70	)		(0.13	)	(0.37	)	—	(0.50	)	19.71	(18.47	)5,6		101	1.13		1.08	8	0.77		41
08-31-2008	25.81		0.13		0.12		0.25			(0.04	)	(1.11	)	—	(1.15	)	24.91	1.15	5,6		134	1.12	7	1.07		0.52		22
08-31-2007	23.66		0.05		2.54		2.59			(0.07	)	(0.37	)	—	(0.44	)	25.81	10.98	5,6		144	1.11	7	1.06		0.20		18
08-31-20062	21.09		0.10		2.52		2.62			(0.05	)	—		—	(0.05	)	23.66	12.41	3,5,6		149	1.12	4,7	1.10	4	0.46	4	12
CLASS NAV
08-31-2009	24.89		0.14		(4.83	)	(4.69	)		(0.14	)	(0.37	)	—	(0.51	)	19.69	(18.43	)5,6		262	1.08		1.03	8	0.84		41
08-31-2008	25.79		0.14		0.12		0.26			(0.05	)	(1.11	)	—	(1.16	)	24.89	1.20	5,6		418	1.07	7	1.02		0.58		22
08-31-2007	23.63		0.06		2.54		2.60			(0.07	)	(0.37	)	—	(0.44	)	25.79	11.04	5,6		319	1.06	7	1.01		0.25		18
08-31-20062	21.06		0.11		2.51		2.62			(0.05	)	—		—	(0.05	)	23.63	12.44	3,5,6		239	1.07	4,7	1.05	4	0.53	4	12
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. 8. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6.
Smaller Company Growth Fund
CLASS NAV
08-31-20092	10.00		(0.04	)	0.42		0.38			—		—		—	—		10.38	3.80	3,5		158	1.29	4	1.17	4	(0.47	)4	86
1. Based on the average of the shares outstanding. 2. Class NAV commenced operations on 10-7-2008. 3. Not annualized. 4. Annualized. 5. Total returns would have been lower had certain expenses not been reduced during the periods shown.
Spectrum Income Fund
CLASS NAV
08-31-2009	10.09		0.48		0.03		0.51			(0.53	)	(0.07	)	—	(0.60	)	10.00	5.85	5,6		901	0.83		0.81	8	5.27		76	9
08-31-2008	10.51		0.48		(0.26	)	0.22			(0.50	)	(0.14	)	—	(0.64	)	10.09	2.06	5,6		1,065	0.86	7	0.83		4.62		67	9
08-31-2007	10.27		0.47		0.24		0.71			(0.45	)	(0.02	)	—	(0.47	)	10.51	7.00	5,6		979	0.88	7	0.86		4.46		73	9
08-31-20062	10.00		0.35		0.19		0.54			(0.27	)	—		—	(0.27	)	10.27	5.47	3,5,6		764	0.94	4,7	0.93	4	4.15	4	123
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. 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. 8. The Adviser has agreed to waive or reimburse expenses, as detailed in the accompanying notes to the financial statements, which are subject to possible recapture by the Investment Adviser within three years of being incurred. See Note 6. 9. The Portfolio turnover rates including the effect of ″TBA″ (to be announced) for the periods ended were as follows: 110% for the period ended 8-31-2009, 114% for the year ended 8-31-2008 and 110% for the year ended 8-31-2007.
Strategic Bond Fund
CLASS 1
08-31-2009	10.47		0.57		(0.17	)	0.40			(0.57	)	—		—	(0.57	)	10.30	4.55	5		40	0.79		0.79		6.08		69	6
08-31-2008	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	6
08-31-2007	11.79		0.65		(0.25	)	0.40			(0.63	)	—	7	—	(0.63	)	11.56	3.36	5		45	0.81		0.81		5.47		91	6
08-31-20062	11.85		0.51		(0.04	)	0.47			(0.53	)	—	7	—	(0.53	)	11.79	4.18	3,5		42	0.82	4	0.82	4	4.88	4	192	6
CLASS NAV
08-31-2009	10.45		0.57		(0.18	)	0.39			(0.57	)	—		—	(0.57	)	10.27	4.52	5		458	0.74		0.74		6.13		69	6
08-31-2008	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	6
08-31-2007	11.77		0.65		(0.24	)	0.41			(0.64	)	—	7	—	(0.64	)	11.54	3.44	5		424	0.76		0.76		5.54		91	6
08-31-20062	11.83		0.51		(0.04	)	0.47			(0.53	)	—	7	—	(0.53	)	11.77	4.22	3,5		270	0.77	4	0.77	4	4.88	4	192	6
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: 256% for the year ended 8-31-09, 394% for the year ended 8-31-08 and 442% for the year ended 8-31-07. The year ended 8-31-06 includes the effect of TBA transactions. 7. Less than $0.01 per share.

419

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 ($)		From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)		Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)		Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
Strategic Income Fund
CLASS NAV
08-31-2009	10.02		0.69	7	0.17		0.86			(1.04	)	(0.08	)	—	(1.12	)	9.76	10.67	5		450		0.83	7	0.83	7	7.81	7	55
08-31-2008	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	6
08-31-2007	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
08-31-20062	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
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: 61% for the year ended 8-31-2008 and 106% for the year ended 8-31-2007. The year ended 8-31-2006 includes the effect of TBA transactions. 7. Includes tax expense, which was 0.07% of average net assets. This expense decreased the net investment income (loss) by $0.01 per share and the net investment income (loss) ratio by 0.07%.
Total Bond Market Fund
CLASS NAV
08-31-2009	10.07		0.39		0.34		0.73			(0.37	)	(0.01	)	—	(0.38	)	10.42	7.43	5		447		0.53		0.53		3.82		91
08-31-2008	10.02		0.46		0.08		0.54			(0.49	)	—		—	(0.49	)	10.07	5.54	5,6		60		0.61	7	0.57		4.56		97
08-31-20072	10.00		0.40		(0.05	)	0.35			(0.33	)	—		—	(0.33	)	10.02	3.54	3,5,6		54		0.62	4,7	0.56	4	4.66	4	101
1. Based on the average of the shares outstanding. 2. Class NAV shares began operations on 10-27-06. 3. Not annualized. 4. Annualized. 5. Assumes dividend reinvestment. 6. Total returns would have been lower had certain expenses not been reduced during the periods shown. 7. Does not take into consideration expense reductions during the periods shown.
Total Return Fund
CLASS 1
08-31-2009	14.11		0.50		1.05		1.55			(0.67	)	(0.97	)	—	(1.64	)	14.02	12.65	5		234		0.78		0.78		3.81		291	6
08-31-2008	13.79		0.61		0.44		1.05			(0.68	)	(0.05	)	—	(0.73	)	14.11	7.78	5,7		160		0.79	8	0.79		4.32		121	6
08-31-2007	13.78		0.64		(0.06	)	0.58			(0.54	)	(0.03	)	—	(0.57	)	13.79	4.26	5		126		0.83	9,10	0.83	9,10	4.67		349	6
08-31-20062	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
CLASS NAV
08-31-2009	14.08		0.52		1.04		1.56			(0.68	)	(0.97	)	—	(1.65	)	13.99	12.75	5		1,547		0.73		0.73		3.91		291	6
08-31-2008	13.75		0.62		0.45		1.07			(0.69	)	(0.05	)	—	(0.74	)	14.08	7.93	5,7		1,680		0.74	8	0.74		4.37		121	6
08-31-2007	13.75		0.65		(0.08	)	0.57			(0.54	)	(0.03	)	—	(0.57	)	13.75	4.26	5		1,400		0.78	9,10	0.78	9,10	4.77		349	6
08-31-20062	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
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: 832% for the year ended 8-31-2009, 440% for the year ended 8-31-2008 and 443% for the year ended 8-31-2007. 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. Includes interest expense on securities sold short. Excluding interest expense the ratio for Class 1 and Class NAV would have been 0.81% and 0.76%, respectively. 10. 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.
U.S. Government Securities Fund
CLASS 1
08-31-2009	12.67		0.34		0.49		0.83			(0.42	)	(0.94	)	—	(1.36	)	12.14	7.27	5		47		0.76		0.76		2.84		99	6
08-31-2008	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
08-31-2007	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
08-31-20062	13.54		0.44		(0.07	)	0.37			(0.32	)	—	7	—	(0.32	)	13.59	2.87	3,5		43		0.78	4	0.78	4	3.67	4	100
CLASS NAV
08-31-2009	12.64		0.35		0.48		0.83			(0.42	)	(0.94	)	—	(1.36	)	12.11	7.35	5		94		0.71		0.71		2.93		99	6
08-31-2008	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
08-31-2007	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
08-31-20062	13.51		0.44		(0.06	)	0.38			(0.33	)	—	7	—	(0.33	)	13.56	2.91	3,5		161		0.73	4	0.73	4	3.75	4	100
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: 385% for the year ended 8-31-2009, 575% for the year ended 8-31-2008 and 739% for the year ended 8-31-2007. 7. Less than $0.01 per share.

420

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 ($)			From net realized gain ($)		From capital paid-in ($)	Total distri- butions ($)			Net asset value, end of period ($)	Total return (%)			Net assets, end of period (in millions)		Expenses before reductions (%)		Expenses net of all fee waivers and credits (%)		Net investment income (loss) (%)		Portfolio turnover (%)
U.S. High Yield Bond Fund
CLASS 1
08-31-2009	12.09		1.01		(0.44	)	0.57			(0.92	)		—		—	(0.92	)		11.74	6.40	5		34		0.82		0.82		9.59		48
08-31-2008	12.87		0.92		(0.76	)	0.16			(0.94	)		—	6	—	(0.94	)		12.09	1.25	5		6		0.82		0.82		7.43		59
08-31-2007	13.05		0.95		(0.18	)	0.77			(0.95	)		—	6	—	(0.95	)		12.87	5.94	5		4		0.84		0.84		7.25		86
08-31-20062	12.74		0.80		0.02		0.82			(0.51	)		—		—	(0.51	)		13.05	6.55	3,5		2		0.87	4	0.87	4	7.12	4	108
CLASS NAV
08-31-2009	12.09		0.99		(0.41	)	0.58			(0.93	)		—		—	(0.93	)		11.74	6.46	5		743		0.77		0.77		9.56		48
08-31-2008	12.87		0.93		(0.77	)	0.16			(0.94	)		—	6	—	(0.94	)		12.09	1.31	5		523		0.77		0.77		7.48		59
08-31-2007	13.05		0.96		(0.18	)	0.78			(0.96	)		—	6	—	(0.96	)		12.87	6.02	5		392		0.79		0.79		7.31		86
08-31-20062	12.74		0.80		0.02		0.82			(0.51	)		—		—	(0.51	)		13.05	6.58	3,5		288		0.82	4	0.82	4	7.06	4	108
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. Less than $0.01 per share.
U.S. Multi Sector Fund
CLASS NAV
08-31-2009	9.65		0.13		(1.33	)	(1.20	)		(0.20	)		—		—	(0.20	)		8.25	(12.22	)5		870		0.81		0.81		1.72		72
08-31-2008	11.29		0.13		(1.28	)	(1.15	)		(0.14	)		(0.35	)	—	(0.49	)		9.65	(10.64	)5		904		0.79		0.79		1.25		84
08-31-2007	10.41		0.13		0.90		1.03			(0.10	)		(0.05	)	—	(0.15	)		11.29	9.93	5		1,524		0.80		0.80		1.19		72
08-31-20062	10.00		0.09		0.33		0.42			(0.01	)		—		—	(0.01	)		10.41	4.25	3,5		1,227		0.82	4	0.82	4	1.01	4	116
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.
Value Fund
CLASS NAV
08-31-2009	9.53		0.08		(1.77	)	(1.69	)		(0.07	)		—		—	(0.07	)		7.77	(17.56	)2		122		0.87		0.87		1.24		76
08-31-2008	11.43		0.08		(1.20	)	(1.12	)		(0.06	)		(0.72	)	—	(0.78	)		9.53	(10.48	)2,3		26		1.08	4	0.99		0.79		76
08-31-20075	10.00		0.08		1.36		1.44			(0.01	)		—		—	(0.01	)		11.43	14.45	2,3,6		14		1.40	4,7	0.99	7	0.88	7	70
1. Based on the average of the shares outstanding. 2. Assumes dividend reinvestment. 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. 5. Class NAV shares began operations on 10-27-06. 6. Not annualized. 7. Annualized.
Value & Restructuring Fund
CLASS NAV
08-31-2009	11.98		0.14		(3.31	)	(3.17	)		(0.12	)		—		—	(0.12	)		8.69	(26.21	)5		514		0.87		0.87		1.82		43
08-31-2008	12.92		0.14		(0.85	)	(0.71	)		(0.19	)		(0.04	)	—	(0.23	)		11.98	(5.68	)5		568		0.86		0.86		1.10		14
08-31-2007	11.08		0.18	6	1.82		2.00			(0.12	)		(0.04	)	—	(0.16	)		12.92	18.12	5		395		0.86		0.86		1.40	6	19
08-31-20062	10.00		0.12		0.99		1.11			(0.03	)		—		—	(0.03	)		11.08	11.07	3,5		296		0.92	4	0.92	4	1.33	4	17
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. Net investment income (loss) per share and ratio of net investment income (loss) to average net assets reflects special dividends received by the Fund/Portfolio which amounted to the following amounts:
Fund												Class						Per Share						Percentage of average net assets
Value & Restructuring												NAV						$0.04						0.31%
Vista Fund
CLASS NAV
08-31-2009	12.55		(0.02	)	(4.32	)	(4.34	)		(0.02	)		(1.45	)	—	(1.47	)		6.74	(33.26	)5		223		0.98		0.98		(0.31	)	211
08-31-2008	14.37		(0.07	)	(0.64	)	(0.71	)		—			(1.11	)	—	(1.11	)		12.55	(6.15	)5		114		0.98		0.98		(0.52	)	154
08-31-2007	10.70		(0.06	)6	3.73		3.67			—			—		—	—			14.37	34.30			170		0.97		0.97		(0.48	)6	152
08-31-20062	10.00		(0.01	)	0.71		0.70			—			—		—	—			10.70	7.00	3		123		1.04	4	1.04	4	(0.15	)4	205
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. 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
Vista												NAV						$0.02						0.14%

 

421

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. The Trust is a series company, which means it has multiple Funds (individually a Fund and collectively the Funds), each with a stated investment objective that it pursues through separate investment policies.

The Funds below are included in this report.

Active Bond Fund	Global Timber Fund	Short Term Government Income Fund
All Cap Core Fund	High Income Fund	Small Cap Growth Fund
All Cap Growth Fund	High Yield Fund	Small Cap Index Fund
All Cap Value Fund	Index 500 Fund	Small Cap Opportunities Fund
Alpha Opportunities Fund	International Equity Index Fund	Small Cap Value Fund
Alternative Asset Allocation Fund	International Opportunities Fund	Small Company Growth Fund
American Diversified Growth & Income Portfolio	International Small Cap Fund	Small Company Value Fund
American Fundamental Holdings Portfolio	International Small Company Fund	Smaller Company Growth Fund
American Global Diversification Portfolio	International Value Fund	Spectrum Income Fund
Blue Chip Growth Fund	Investment Quality Bond Fund	Strategic Bond Fund
Capital Appreciation Fund	Large Cap Fund	Strategic Income Fund
Core Bond Fund	Large Cap Value Fund	Total Bond Market Fund
Emerging Markets Value Fund	Mid Cap Index Fund	Total Return Fund
Emerging Small Company Fund	Mid Cap Stock Fund	U.S. Government Securities Fund
Equity-Income Fund	Mid Cap Value Equity Fund	U.S. High Yield Bond Fund
Fundamental Value Fund	Mid Value Fund	U.S. Multi Sector Fund
Global Agribusiness Fund	Natural Resources Fund	Value Fund
Global Bond Fund	Real Estate Equity Fund	Value & Restructuring Fund
Global Infrastructure Fund	Real Estate Securities Fund	Vista Fund
Global Real Estate Fund	Real Return Bond Fund

 

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 Alternative Asset Allocation Fund, American Diversified Growth & Income Portfolio, American Fundamental Holdings Portfolio, American Global Diversification Portfolio, Global Agribusiness Fund, Global Bond Fund, Global Infrastructure Fund, Global Real Estate Fund, Global Timber Fund, Natural Resources Fund, Real Estate Equity Fund, Real Estate Securities Fund, Real Return Bond Fund and U.S. Multi Sector Fund, is diversified for purposes of the 1940 Act.

Alternative Asset Allocation Fund 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 Portfolio, American Fundamental Holdings Portfolio and American Global Diversification Portfolio (collectively, JHF II American Funds) operate as “funds of funds,” investing in shares of the American Funds Insurance Series mutual funds (American 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 SEC’s public reference room in Washington, D.C. The American Funds are not covered by this report.

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

The Funds described in this report offer four classes of shares as follows:

FUND	CLASS A			CLASS I		CLASS 1		CLASS NAV
Active Bond Fund							•		•
All Cap Core Fund									•
All Cap Growth Fund							•
All Cap Value Fund							•		•
Alpha Opportunities Fund									•
Alternative Asset Allocation Fund		•
American Diversified Growth & Income Portfolio							•
American Fundamental Holdings Portfolio							•
American Global Diversification Portfolio							•
Blue Chip Growth Fund							•		•
Capital Appreciation Fund							•		•
Core Bond Fund			��				•		•
Emerging Markets Value Fund									•
Emerging Small Company Fund							•
Equity-Income Fund							•		•
Fundamental Value Fund							•		•
Global Agribusiness Fund		•			•

422

ORGANIZATION OF THE TRUST, CONTINUED

FUND	CLASS A		CLASS I		CLASS 1		CLASS NAV
Global Bond Fund						•		•
Global Infrastructure Fund		•		•
Global Real Estate Fund								•
Global Timber Fund		•		•
High Income Fund								•
High Yield Fund						•		•
Index 500 Fund								•
International Equity Index Fund								•
International Opportunities Fund						•		•
International Small Cap Fund						•		•
International Small Company Fund								•
International Value Fund						•		•
Investment Quality Bond Fund						•		•
Large Cap Fund						•		•
Large Cap Value Fund						•		•
Mid Cap Index Fund								•
Mid Cap Stock Fund						•		•
Mid Cap Value Equity Fund								•
Mid Value Fund								•
Natural Resources Fund						•		•
Real Estate Equity Fund								•
Real Estate Securities Fund						•
Real Return Bond Fund						•		•
Short Term Government Income Fund								•
Small Cap Growth Fund								•
Small Cap Index Fund								•
Small Cap Opportunities Fund						•		•
Small Cap Value Fund								•
Small Company Growth Fund								•
Small Company Value Fund						•		•
Smaller Company Growth Fund								•
Spectrum Income Fund								•
Strategic Bond Fund						•		•
Strategic Income Fund								•
Total Bond Market Fund								•
Total Return Fund						•		•
U.S. Government Securities Fund						•		•
U.S. High Yield Bond Fund						•		•
U.S. Multi Sector Fund								•
Value Fund								•
Value & Restructuring Fund								•
Vista Fund								•

 

Class A shares are open to all retail investors for Alternative Asset Allocation Fund, Global Agribusiness Fund, Global Infrastructure Fund and Global Timber Fund. Class I shares are offered without any sales charge to various institutional and certain individual investors for Global Agribusiness Fund, Global Infrastructure Fund and Global Timber Fund. Class 1 shares are sold only to certain affiliates of MFC. Class NAV shares are sold to Alternative Asset Allocation Fund, 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 Board of Trustees (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, 2009, the Adviser and other affiliates of MFC owned shares of beneficial interest for the following Funds:

FUND	CLASS A		CLASS 1		CLASS I		CLASS NAV
Alternative Asset Allocation Fund		100,000		—		—		—
American Diversified Growth & Income Portfolio		—		101,552		—		—
American Fundamental Holdings Portfolio		—		101,883		—		—
American Global Diversification Portfolio		—		102,325		—		—
Global Agribusiness Fund		100,365		—		100,476		—
Global Infrastructure Fund		101,214		—		101,319		—
Global Timber Fund		100,426		—		100,538		—
Value Fund		—		—		—		543,515

 

423

ORGANIZATION OF THE TRUST, CONTINUED

New Funds  The following Funds commenced operations on the following dates:

FUND	DATE
Small Cap Growth Fund	September 10, 2008
Alpha Opportunities Fund	October 7, 2008
Smaller Company Growth Fund	October 7, 2008
Small Cap Value Fund	December 16, 2008
Alternative Asset Allocation Fund	January 2, 2009
Global Agribusiness Fund	January 2, 2009
Global Infrastructure Fund	January 2, 2009
Global Timber Fund	January 2, 2009
Mid Value Fund	January 2, 2009
Short Term Government Income Fund	January 2, 2009

 

Cessation of Operations  On the following dates, all of the net assets were redeemed from the Funds listed below:

FUND	DATE
Small Cap Fund	October 27, 2008
Emerging Growth Fund	December 12, 2008
Small Company Fund	December 15, 2008
Core Equity Fund	April 24, 2009
Mid Cap Value Fund	April 24, 2009
Absolute Return Portfolio	May 7, 2009
Mid Cap Intersection Fund	June 25, 2009
Optimized All Cap Fund	June 29, 2009

 

Effective October 23, 2009, Emerging Small Company Fund will be liquidated.

2.  SIGNIFICANT ACCOUNTING POLICIES The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, October 23, 2009, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Funds:

Security Valuation  Investments are stated at value as of the close of the regular trading on the New York Stock Exchange (NYSE), normally at 4:00 P.M., Eastern Time. Investments by the Funds of Funds (Alternative Asset Allocation Fund and the American Funds) 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. All other securities held by the Funds are valued at the last sale price or official closing price (closing bid price or last evaluated price if no sale has occurred) as of the close of business on the principal securities exchange (domestic or foreign) on which they trade. Debt obligations are valued based on the evaluated prices provided by an independent pricing service, which utilizes both dealer-supplied and electronic data processing techniques, 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 as well as broker quotes. Foreign securities and currencies are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing service. Securities sold short are valued at the closing ask price. Certain securities traded only in the over-the-counter market are valued at the last bid price quoted by brokers making markets in the securities at the close of trading. Equity and debt obligations, for which there are no prices available from an independent pricing service, are valued based on broker quotes or fair valued, as described below. Certain short-term debt instruments are valued at amortized cost. John Hancock Collateral Investment Trust (JHCIT), an affiliated registered investment company managed by John Hancock Advisers, LLC, a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of MFC, is valued at its net asset value each business day. JHCIT is a floating rate fund investing in money market instruments.

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. 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 Funds’ 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.

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 and market conditions, interest rates, investor perceptions and market liquidity.

Fair Value Measurements  The Funds use a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs and the valuation techniques used are summarized below:

•   Level 1 — Exchange traded prices in active markets for identical securities. This technique is used for exchange-traded domestic common and preferred equities, certain foreign equities, warrants, rights, options and futures In addition, certain investment companies, including mutual funds, are valued using this technique.

•   Level 2 — Prices determined using significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these techniques are received from independent pricing vendors and are based on an evaluation of the inputs described. These techniques are used for certain domestic preferred equities, certain foreign equities, unlisted rights and warrants, and fixed income securities. Also, over-the-counter derivative contracts, including swaps, foreign forward currency contracts, and certain options use these techniques.

•   Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an investment, unobservable inputs may be used. Unobservable inputs reflect the Trust’s Pricing Committee’s own assumptions about the factors that market participants would use in pricing an investment and would be based on the best information available. Securities using this technique are generally thinly traded or privately placed, and may be valued using broker quotes, which may not only use observable or unobservable inputs but may also include the use of the brokers’ own judgments about the assumptions that market participants would use.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

424

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

The following is a summary of the inputs used to value the Funds’ investments as of August 31, 2009, by major security category or security type. Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards, written options and swap contracts, which are stated at market value.

Investments in Securities	Level 1			Level 2		Level 3		Totals
Active Bond Fund
Asset Backed Securities		—		$	9,538,438	$	3,656,933	$	13,195,371
Collateralized Mortgage Obligations		—			80,217,867		5,165,113		85,382,980
Corporate Bonds		—			296,495,180		503,600		296,998,780
Foreign Government Obligations		—			1,133,904		—		1,133,904
Municipal Bonds		—			1,804,635		—		1,804,635
Preferred Stocks	$	1,176,783			782,074		—		1,958,857
Supranational Obligations		—			252,311		—		252,311
U.S. Government Agency Obligations		—			124,080,523		—		124,080,523
U.S. Treasury Obligations		—			19,556,155		—		19,556,155
Warrants		1,091			—		—		1,091
Short Term Investments		—			30,577,598		—		30,577,598
Total Investments in Securities	$	1,177,874		$	564,438,685	$	9,325,646	$	574,942,205
Other Financial Instruments		($47,069	)		—		—		($47,069	)
Totals	$	1,130,805		$	564,438,685	$	9,325,646	$	574,895,136
All Cap Core Fund
Basic Materials	$	25,432,816			—		—	$	25,432,816
Communications		49,849,801			—		—		49,849,801
Consumer, Cyclical		28,795,524			—		—		28,795,524
Consumer, Non-cyclical		109,228,314			—		—		109,228,314
Energy		43,060,174			—		—		43,060,174
Financial		57,494,916			—		—		57,494,916
Industrial		60,204,464			—		—		60,204,464
Technology		37,197,660			—		—		37,197,660
Utilities		15,533,069			—		—		15,533,069
Short Term Investments		24,010,310		$	44,265,690		—		68,276,000
Total Investments in Securities	$	450,807,048		$	44,265,690		—	$	495,072,738
Other Financial Instruments	$	3,829,092			—		—	$	3,829,092
Totals	$	454,636,140		$	44,265,690		—	$	498,901,830
All Cap Growth Fund
Basic Materials	$	2,082,588		$	366,430		—	$	2,449,018
Communications		8,100,852			1,914,867		—		10,015,719
Consumer, Cyclical		10,725,543			—		—		10,725,543
Consumer, Non-cyclical		23,276,658			396,379		—		23,673,037
Energy		5,239,051			—		—		5,239,051
Financial		5,924,290			—		—		5,924,290
Industrial		12,629,936			—		—		12,629,936
Technology		14,863,629			715,834		—		15,579,463
Short Term Investments		1,798,951			2,700,000		—		4,498,951
Total Investments in Securities	$	84,641,498		$	6,093,510		—	$	90,735,008
All Cap Value Fund
Basic Materials	$	14,212,338			—		—	$	14,212,338
Communications		6,093,702			—		—		6,093,702
Consumer, Cyclical		51,705,725			—		—		51,705,725
Consumer, Non-cyclical		75,342,119			—		—		75,342,119
Energy		38,805,427			—		—		38,805,427
Financial		82,447,930			—		—		82,447,930
Industrial		54,381,504			—		—		54,381,504
Technology		20,209,687			—		—		20,209,687
Short Term Investments		30,276,606		$	3,997,000		—		34,273,606
Total Investments in Securities	$	373,475,038		$	3,997,000		—	$	377,472,038

425

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2			Level 3		Totals
Alpha Opportunities Fund
Basic Materials	$	34,810,806	$	5,574,172			—	$	40,384,978
Communications		51,988,131		5,260,132			—		57,248,263
Consumer, Cyclical		75,631,533		5,620,377			—		81,251,910
Consumer, Non-cyclical		119,161,052		4,520,568			—		123,681,620
Diversified		—		2,264,648			—		2,264,648
Energy		66,085,182		7,327,660			—		73,412,842
Financial		92,514,122		20,275,792			—		112,789,914
Industrial		68,867,373		8,371,503			—		77,238,876
Investment Companies		8,482,087		—			—		8,482,087
Technology		74,155,501		1,757,977			—		75,913,478
Utilities		1,842,474		504,071			—		2,346,545
Short Term Investments		76,061,317		13,400,000			—		89,461,317
Total Investments in Securities	$	669,599,578	$	74,876,900			—	$	744,476,478
Alternative Asset Allocation Fund
Investment Companies	$	1,270,758		—			—	$	1,270,758
American Diversified Growth & Income Portfolio
Investment Companies	$	11,545,663		—			—	$	11,545,663
American Fundamental Holdings Portfolio
Investment Companies	$	7,945,581		—			—	$	7,945,581
American Global Diversification Portfolio
Investment Companies	$	7,749,393		—			—	$	7,749,393
Blue Chip Growth Fund
Basic Materials	$	30,617,974		—			—	$	30,617,974
Communications		269,359,571	$	15,301,941			—		284,661,512
Consumer, Cyclical		136,831,475		—			—		136,831,475
Consumer, Non-cyclical		275,427,819		1,618,356			—		277,046,175
Energy		92,785,278		—			—		92,785,278
Financial		242,833,785		963,285			—		243,797,070
Industrial		89,022,120		—			—		89,022,120
Technology		235,441,376		—			—		235,441,376
Utilities		8,989,380		—			—		8,989,380
Short Term Investments		46,245,024		9,514,374			—		55,759,398
Total Investments in Securities	$	1,427,553,802	$	27,397,956			—	$	1,454,951,758
Capital Appreciation Fund
Basic Materials	$	20,131,200		—			—	$	20,131,200
Communications		173,905,880	$	2,205,376			—		176,111,256
Consumer, Cyclical		127,163,263		—			—		127,163,263
Consumer, Non-cyclical		318,736,447		17,076,619			—	��	335,813,066
Energy		94,172,959		—			—		94,172,959
Financial		77,177,729		—			—		77,177,729
Industrial		5,385,733		—			—		5,385,733
Technology		259,952,584		—			—		259,952,584
Short Term Investments		65,423,611		46,616,000			—		112,039,611
Total Investments in Securities	$	1,142,049,406	$	65,897,995			—	$	1,207,947,401
Core Bond Fund
Asset Backed Securities		—	$	21,905,747			—	$	21,905,747
Collateralized Mortgage Obligations		—		80,837,075		$	556,323		81,393,398
Corporate Bonds		—		89,968,981			—		89,968,981
Foreign Government Obligations		—		7,825,972			—		7,825,972
Municipal Bonds		—		594,516			—		594,516
Supranational Obligations		—		1,467,893			—		1,467,893
U.S. Government Agency Obligations		—		166,965,699			—		166,965,699
U.S. Treasury Obligations		—		76,686,250			—		76,686,250
Short Term Investments		—		17,697,000			—		17,697,000
Total Investments in Securities		—	$	463,949,133		$	556,323	$	464,505,456
Investments in Securities Sold Short		—		($9,935,235	)		—		($9,935,235	)
Totals		—	$	454,013,898		$	556,323	$	454,570,221

426

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2		Level 3		Totals
Emerging Markets Value Fund
Brazil	$	107,881,152	$	121,417		—	$	108,002,569
China		1,378,719		32,573,682		—		33,952,401
Hong Kong		—		74,880,362		—		74,880,362
India		33,506,594		93,758,616	$	16,560		127,281,770
Indonesia		—		33,599,990		—		33,599,990
Malaysia		34,424		40,264,731		—		40,299,155
Mexico		85,549,171		—		—		85,549,171
South Africa		21,560,161		93,514,787		—		115,074,948
South Korea		23,105,554		104,755,848		—		127,861,402
Taiwan		11,982,331		104,400,809		—		116,383,140
Other Countries		38,014,006		133,089,250		—		171,103,256
Short Term Investments		84,101,622		3,778,000		—		87,879,622
Total Investments in Securities	$	407,113,734	$	714,737,492	$	16,560	$	1,121,867,786
Emerging Small Company Fund
Basic Materials	$	796,956		—		—	$	796,956
Communications		2,019,644		—		—		2,019,644
Consumer, Cyclical		5,101,692		—		—		5,101,692
Consumer, Non-cyclical		6,974,524		—		—		6,974,524
Energy		1,037,272		—		—		1,037,272
Financial		2,523,948		—		—		2,523,948
Industrial		3,737,058		—		—		3,737,058
Technology		6,030,992		—		—		6,030,992
Short Term Investments		3,450,976	$	290,000		—		3,740,976
Total Investments in Securities	$	31,673,062	$	290,000		—	$	31,963,062
Equity-Income Fund
Basic Materials	$	47,272,536		—		—	$	47,272,536
Communications		65,718,216	$	5,873,730		—		71,591,946
Consumer, Cyclical		75,368,477		4,163,519		—		79,531,996
Consumer, Non-cyclical		86,184,571		3,270,218		—		89,454,789
Energy		116,185,708		—		—		116,185,708
Financial		163,599,582		1,298,183		—		164,897,765
Industrial		97,158,497		—		—		97,158,497
Technology		39,282,102		—		—		39,282,102
Utilities		38,635,305		—		—		38,635,305
Short Term Investments		65,982,948		28,850,184		—		94,833,132
Total Investments in Securities	$	795,387,942	$	43,455,834		—	$	838,843,776
Fundamental Value Fund
Basic Materials	$	20,701,726		13,319,256		—	$	34,020,982
Communications		74,369,070		—		—		74,369,070
Consumer, Cyclical		146,987,526		10,800,726		—		157,788,252
Consumer, Non-cyclical		245,147,045		17,963,091		—		263,110,136
Diversified		—		13,295,894		—		13,295,894
Energy		197,024,054		9,062,804		—		206,086,858
Financial		375,397,144		41,367,759		—		416,764,903
Industrial		69,387,385		16,320,132		—		85,707,517
Technology		96,401,146		—		—		96,401,146
Utilities		2,607,553		—		—		2,607,553
Short Term Investments		113,598,925		56,053,708		—		169,652,633
Total Investments in Securities	$	1,341,621,574	$	178,183,370		—	$	1,519,804,944
								—
Global Agribusiness Fund
Australia		—	$	25,320		—	$	25,320
Bermuda		—		8,551		—		8,551
Canada	$	314,404		—		—		314,404
France		16,125		—		—		16,125
Japan		—		34,413		—		34,413
Norway		27,210		—		—		27,210
Singapore		885		191,892		—		192,777
Switzerland		254,000		37,407		—		291,407
United Kingdom		122,977		—		—		122,977
United States		1,209,733		—		—		1,209,733
Total Investments in Securities	$	1,945,334	$	297,583		—	$	2,242,917

427

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2			Level 3		Totals
Global Bond Fund
Asset Backed Securities		—	$	17,746,590		$	1,306,968	$	19,053,558
Collateralized Mortgage Obligations		—		80,283,978			1,638,566		81,922,544
Corporate Bonds		—		241,371,303			2,115,895		243,487,198
Foreign Government Obligations		—		153,419,082			—		153,419,082
Municipal Bonds		—		5,383,009			—		5,383,009
Preferred Stocks	$	74,400		1,124,055			—		1,198,455
Supranational Obligations		—		1,812,136			—		1,812,136
Term Loans		—		3,008,194			—		3,008,194
U.S. Government Agency Obligations		—		98,382,224			—		98,382,224
U.S. Treasury Obligations		—		8,595,661			—		8,595,661
Short Term Investments		—		34,216,577			—		34,216,577
Total Investments in Securities	$	74,400	$	645,342,809		$	5,061,429	�� $	650,478,638
Investments in Securities Sold Short		—		($90,831,474	)		—		($90,831,474	)
Other Financial Instruments	$	1,110,094	$	7,323,159			—	$	8,433,253
Totals	$	1,184,494	$	561,834,494		$	5,061,429	$	568,080,417
Global Infrastructure Fund
Australia		—	$	84,527			—	$	84,527
Brazil	$	94,656		—			—		94,656
Canada		256,066		—			—		256,066
France		15,856		34,458			—		50,314
Germany		20,794		91,623			—		112,417
Japan		69,976		25,467			—		95,443
Portugal		32,178		57,615			—		89,793
Spain		112,457		132,548			—		245,005
United Kingdom		75,508		—			—		75,508
United States		757,611		—			—		757,611
Other Countries		96,377		96,530			—		192,907
Grand Total	$	1,531,479	$	522,768			—	$	2,054,247
Global Real Estate Fund
Australia		—	$	31,350,311			—	$	31,350,311
Canada	$	7,567,694		496,716			—		8,064,410
Finland		—		980,940			—		980,940
France		—		11,284,150			—		11,284,150
Hong Kong		—		47,632,289			—		47,632,289
Japan		—		36,960,208			—		36,960,208
Netherlands		—		4,061,447			—		4,061,447
Singapore		—		15,483,046			—		15,483,046
United Kingdom		—		24,537,696			—		24,537,696
United States		93,721,932		—			—		93,721,932
Other Countries		—		2,349,305		$	7		2,349,312
Short Term Investments		17,915,228		—			—		17,915,228
Total Investments in Securities	$	119,204,854	$	175,136,108		$	7	$	294,340,969
Global Timber
Australia		—	$	189,008			—	$	189,008
Brazil	$	194,687		—			—		194,687
Canada		413,301		—			—		413,301
Hong Kong		—		27,237			—		27,237
Japan		—		25,318			—		25,318
Sweden		—		151,475			—		151,475
United States		1,278,521		—			—		1,278,521
Total Investments in Securities	$	1,886,509	$	393,038			—	$	2,279,547

428

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2			Level 3			Totals
High Income Fund
Asset Backed Securities		—		—		$	2,207,200		$	2,207,200
Collateralized Mortgage Obligations		—	$	2,891,870			2,845,382			5,737,252
Common Stocks	$	33,577,548		978,723			—			34,556,271
Convertible Bonds		—		31,123,223			—			31,123,223
Corporate Bonds		—		238,706,375			28,573,055			267,279,430
Preferred Stocks		20,306,948		9,818,670			—			30,125,618
Purchased Options		1,231,760		—			935,508			2,167,268
Term Loans		—		60,088,508			1,355,357			61,443,865
Warrants		12,569		—			—			12,569
Short Term Investments		60		—			—			60
Total Investments in Securities	$	55,128,885	$	343,607,369		$	35,916,502		$	434,652,756
Other Financial Instruments		—		($223,325	)		($935,508	)		($1,158,833	)
Totals	$	55,128,885	$	343,384,044		$	34,980,994		$	433,493,923
High Yield Fund
Common Stocks	$	283,085		—			—		$	283,085
Convertible Bonds		—	$	3,552,500			—			3,552,500
Corporate Bonds		—		814,118,948		$	854,252			814,973,200
Foreign Government Obligations		—		35,834,838			259,733			36,094,571
Preferred Stocks		8,094,940		4,565,401			5,865,771			18,526,112
Term Loans		—		38,281,927			1,148,618			39,430,545
Warrants		—		—			77,611			77,611
Short Term Investments		3,681,147		24,700,000			—			28,381,147
Total Investments in Securities	$	12,059,172	$	921,053,614		$	8,205,985		$	941,318,771
Index 500 Fund
Basic Materials	$	69,004,427		—			—		$	69,004,427
Communications		193,323,851		—			—			193,323,851
Consumer, Cyclical		165,353,713		—			—			165,353,713
Consumer, Non-cyclical		407,458,131		—			—			407,458,131
Diversified		917,703		—			—			917,703
Energy		221,941,922		—			—			221,941,922
Financial		285,877,418		—			—			285,877,418
Industrial		186,726,860		—			—			186,726,860
Technology		237,938,286		—			—			237,938,286
Utilities		59,541,693		—			—			59,541,693
Short Term Investments		75,602,338	$	21,860,000			—			97,462,338
Total Investments in Securities	$	1,903,686,342	$	21,860,000			—		$	1,925,546,342
Other Financial Instruments	$	2,373,237		—			—		$	2,373,237
Totals	$	1,906,059,579	$	21,860,000			—		$	1,927,919,579
International Equity Index Fund
Australia		—	$	16,361,761			—		$	16,361,761
Brazil	$	9,383,891		56,468			—			9,440,359
Canada		20,494,397		—			—			20,494,397
France		—		22,056,943			—			22,056,943
Germany		—		17,258,348			—			17,258,348
Hong Kong		—		9,773,381			—			9,773,381
Japan		—		48,598,211			—			48,598,211
Spain		—		9,924,051			—			9,924,051
Switzerland		—		17,849,013			—			17,849,013
United Kingdom		23,840		46,437,479			—			46,461,319
Other Countries		12,770,547		71,745,399			—			84,515,946
Short Term Investments		5,600,997		9,134,637			—			14,735,634
Total Investments in Securities	$	48,273,672	$	269,195,691			—		$	317,469,363
Other Financial Instruments	$	1,634,499	$	416,500			—		$	2,050,999
Totals	$	49,908,171	$	269,612,191			—		$	319,520,362

429

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2		Level 3		Totals
International Opportunities Fund
Brazil	$	51,660,555		—		—	$	51,660,555
Denmark		—	$	29,523,744		—		29,523,744
Germany		—		48,221,888		—		48,221,888
Hong Kong		—		39,494,181		—		39,494,181
India		15,536,477		—		—		15,536,477
Japan		—		88,238,538		—		88,238,538
Mexico		20,980,381		—		—		20,980,381
Singapore		—		17,879,990		—		17,879,990
Spain		—		48,469,963		—		48,469,963
Switzerland		26,479,460		72,526,610		—		99,006,070
Taiwan		18,808,867		14,209,649		—		33,018,516
United Kingdom		—		73,884,717		—		73,884,717
United States		7,417,365		—		—		7,417,365
Other Countries		25,602,657		90,301,934		—		115,904,591
Short Term Investments		17,766,894		37,504,000		—		55,270,894
Total Investments in Securities	$	184,252,656	$	560,255,214		—	$	744,507,870
International Small Cap Fund
Australia		—	$	24,270,796		—	$	24,270,796
Canada	$	17,341,841		3,106,280		—		20,448,121
Hong Kong		—		30,280,589		—		30,280,589
Japan		—		16,311,023		—		16,311,023
Netherlands		—		24,538,689		—		24,538,689
South Korea		—		20,670,622		—		20,670,622
Switzerland		—		9,658,562		—		9,658,562
Taiwan		—		16,126,363		—		16,126,363
Thailand		—		11,276,255		—		11,276,255
United Kingdom		—		23,129,567		—		23,129,567
Other Countries		4,092,870		35,788,979		—		39,881,849
Short Term Investments		6,782,026		1,115,000		—		7,897,026
Total Investments in Securities	$	28,216,737	$	216,272,725		—	$	244,489,462
International Small Company Fund
Australia		—	$	9,112,876	$	1,940	$	9,114,816
Canada	$	10,349,029		16		—		10,349,045
Finland		—		4,078,148		—		4,078,148
France		—		6,285,676		—		6,285,676
Germany		3		7,137,072		—		7,137,075
Italy		3,822		4,834,759		—		4,838,581
Japan		—		32,877,073		—		32,877,073
Sweden		—		3,172,177		—		3,172,177
Switzerland		3,417		6,520,933		—		6,524,350
United Kingdom		487,580		22,291,718		—		22,779,298
Other Countries		546,242		23,073,559		—		23,619,801
Short Term Investments		2,826,990		—		—		2,826,990
Total Investments in Securities	$	14,217,083	$	119,384,007	$	1,940	$	133,603,030
International Value Fund
France		—	$	136,546,409		—	$	136,546,409
Germany		—		112,473,833		—		112,473,833
Japan		—		74,632,242		—		74,632,242
Netherlands		—		65,722,486		—		65,722,486
Norway		—		56,237,531		—		56,237,531
South Korea	$	12,815,152		32,955,015		—		45,770,167
Switzerland		—		90,062,999		—		90,062,999
Taiwan		—		67,014,707		—		67,014,707
United Kingdom		—		233,039,543		—		233,039,543
United States		21,158,781		—		—		21,158,781
Other Countries		63,738,232		150,979,027		—		214,717,259
Short Term Investments		50,889,821		29,645,000		—		80,534,821
Total Investments in Securities	$	148,601,986	$	1,049,308,792		—	$	1,197,910,778

430

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1			Level 2			Level 3		Totals
Investment Quality Bond Fund
Asset Backed Securities		—		$	2,314,987			—	$	2,314,987
Collateralized Mortgage Obligations		—			15,429,743			—		15,429,743
Common Stocks	$	781			—			—		781
Convertible Bonds		—			3,519			—		3,519
Corporate Bonds		—			87,567,783			—		87,567,783
Foreign Government Obligations		—			2,082,173			—		2,082,173
Municipal Bonds		—			2,724,387			—		2,724,387
Preferred Stocks		—			18,000			—		18,000
U.S. Government Agency Obligations		—			9,559,603			—		9,559,603
U.S. Treasury Obligations		—			48,449,724			—		48,449,724
Short Term Investments		—			16,113,000			—		16,113,000
Total Investments in Securities	$	781		$	184,262,919			—	$	184,263,700
Other Financial Instruments		($30,815	)		(100,656	)		—		($131,471	)
Totals		($30,034	)	$	184,162,263			—	$	184,132,229
Large Cap Fund
Basic Materials	$	3,070,008			—			—	$	3,070,008
Communications		18,019,122			—			—		18,019,122
Consumer, Cyclical		12,070,521			—			—		12,070,521
Consumer, Non-cyclical		53,817,056			—			—		53,817,056
Energy		31,905,764			—			—		31,905,764
Financial		31,991,805			—			—		31,991,805
Industrial		23,137,345			—			—		23,137,345
Investment Companies		1,128,050			—			—		1,128,050
Technology		36,845,861			—			—		36,845,861
Utilities		12,340,988			—			—		12,340,988
Short Term Investments		5,170,823		$	2,905,000			—		8,075,823
Total Investments in Securities	$	229,497,343		$	2,905,000			—	$	232,402,343
Large Cap Value Fund
Basic Materials	$	2,421,360			—			—	$	2,421,360
Communications		35,324,710			—			—		35,324,710
Consumer, Cyclical		41,597,310			—			—		41,597,310
Consumer, Non-cyclical		124,766,799			—			—		124,766,799
Energy		128,707,336			—			—		128,707,336
Financial		73,649,700			—			—		73,649,700
Industrial		44,646,910			—			—		44,646,910
Technology		31,190,500			—			—		31,190,500
Utilities		31,778,460			—			—		31,778,460
Short Term Investments		26,172,066		$	1,396,000			—		27,568,066
Total Investments in Securities	$	540,255,151		$	1,396,000			—	$	541,651,151
Mid Cap Index Fund
Basic Materials	$	26,866,951			—			—	$	26,866,951
Communications		21,567,679			—			—		21,567,679
Consumer, Cyclical		69,050,837			—			—		69,050,837
Consumer, Non-cyclical		102,492,675			—			—		102,492,675
Energy		31,973,864			—			—		31,973,864
Financial		90,510,384			—			—		90,510,384
Industrial		81,585,608			—			—		81,585,608
Technology		39,571,485			—			—		39,571,485
Utilities		28,778,407			—			—		28,778,407
Short Term Investments		69,227,435		$	8,705,000			—		77,932,435
Total Investments in Securities	$	561,625,325		$	8,705,000			—	$	570,330,325
Other Financial Instruments	$	1,669,812			—			—	$	1,669,812
Totals	$	563,295,137		$	8,705,000			—	$	572,000,137

431

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2		Level 3		Totals
Mid Cap Stock Fund
Basic Materials	$	2,927,400		—		—	$	2,927,400
Communications		56,592,977		—		—		56,592,977
Consumer, Cyclical		179,894,417	$	7,758,332		—		187,652,749
Consumer, Non-cyclical		176,288,517		19,337,070		—		195,625,587
Energy		15,881,830		1,242,527		—		17,124,357
Financial		30,723,586		7,464,480		—		38,188,066
Industrial		100,193,005		6,486,407		—		106,679,412
Technology		94,403,954		—		—		94,403,954
Short Term Investments		57,423,013		6,700,000		—		64,123,013
Total Investments in Securities	$	714,328,699	$	48,988,816		—	$	763,317,515
Mid Cap Value Equity Fund
Basic Materials	$	14,067,922		—		—	$	14,067,922
Communications		7,027,820	$	298,980		—		7,326,800
Consumer, Cyclical		20,206,035		—		—		20,206,035
Consumer, Non-cyclical		17,682,988		—		—		17,682,988
Energy		14,262,927		—		—		14,262,927
Financial		32,311,970		—		—		32,311,970
Industrial		26,915,425		—		—		26,915,425
Technology		16,699,128		—		—		16,699,128
Utilities		9,258,779		—		—		9,258,779
Short Term Investments		18,350,315		2,600,000		—		20,950,315
Total Investments in Securities	$	176,783,309	$	2,898,980		—	$	179,682,289
Mid Value Fund
Basic Materials	$	20,311,303	$	126,558		—	$	20,437,861
Communications		24,059,875		—		—		24,059,875
Consumer, Cyclical		34,175,231		746,515		—		34,921,746
Consumer, Non-cyclical		61,404,455		—		—		61,404,455
Energy		27,265,862		—		—		27,265,862
Financial		65,030,188		996,438		—		66,026,626
Industrial		17,024,837		754,188		—		17,779,025
Technology		14,224,232		47,775		—		14,272,007
Utilities		23,832,145		—		—		23,832,145
Short Term Investments		—		7,510,116				7,510,116
Total Investments in Securities	$	287,328,128	$	10,181,590		—	$	297,509,718
Natural Resources Fund
Basic Materials	$	100,462,555	$	104,084,999		—	$	204,547,554
Energy		415,307,622		29,963,099		—		445,270,721
Short Term Investments		68,626,752		13,868,000		—		82,494,752
Total Investments in Securities	$	584,396,929	$	147,916,098		—	$	732,313,027
Real Estate Equity Fund
Basic Materials	$	3,122,899		—		—	$	3,122,899
Consumer, Cyclical		8,110,370		—		—		8,110,370
Financial		184,780,107	$	16,375,679		—		201,155,786
Short Term Investments		59,029,273		990		—		59,030,263
Total Investments in Securities	$	255,042,649	$	16,376,669		—	$	271,419,318
Real Estate Securities Fund
Financial	$	74,443,406		—		—	$	74,443,406
Short Term Investments		13,803,860	$	536,000		—		14,339,860
Total Investments in Securities	$	88,247,266	$	536,000		—	$	88,783,266

432

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2			Level 3		Totals
Real Return Bond Fund
Asset Backed Securities		—	$	21,828,166			—	$	21,828,166
Collateralized Mortgage Obligations		—		13,015,010		$	4,650,000		17,665,010
Corporate Bonds		—		141,644,672			—		141,644,672
Foreign Government Obligations		—		22,770,140			—		22,770,140
Municipal Bonds		—		1,893,057			—		1,893,057
Preferred Stocks	$	426,250		810,000			—		1,236,250
Term Loans		—		6,933,561			—		6,933,561
U.S. Government Agency Obligations		—		80,315,431			—		80,315,431
U.S. Treasury Obligations		—		1,046,982,349			—		1,046,982,349
Short Term Investments		—		38,447,565			—		38,447,565
Total Investments in Securities	$	426,250	$	1,374,639,951		$	4,650,000	$	1,379,716,201
Investments in Securities Sold Short		—		($56,540,512	)		—		($56,540,512	)
Other Financial Instruments	$	1,291,956	$	1,052,697			—	$	2,344,653
Totals	$	1,718,206	$	1,319,152,136		$	4,650,000	$	1,325,520,342
Short Term Government Income Fund
Collateralized Mortgage Obligations		—	$	1,318,533			—	$	1,318,533
U.S. Government Agency Obligation		—		17,898,407			—		17,898,407
U.S. Treasury Obligation		—		5,143,744			—		5,143,744
Short Term Investments		—		226,000			—		226,000
Total Investments in Securities		—	$	24,586,684			—	$	24,586,684
Small Cap Growth Fund
Basic Materials	$	1,066,041		—			—	$	1,066,041
Communications		11,774,357		—			—		11,774,357
Consumer, Cyclical		30,405,225		—			—		30,405,225
Consumer, Non-cyclical		35,916,021		—			—		35,916,021
Energy		3,111,967		—			—		3,111,967
Financial		6,317,658		—			—		6,317,658
Industrial		18,624,218		—			—		18,624,218
Technology		17,013,909		—			—		17,013,909
Total Investments in Securities	$	124,229,396		—			—	$	124,229,396
Small Cap Index Fund
Basic Materials	$	3,795,497		—			—	$	3,795,497
Communications		7,774,516		—			—		7,774,516
Consumer, Cyclical		13,430,060		—			—		13,430,060
Consumer, Non-cyclical		22,941,887		—		$	172		22,942,059
Diversified		14,670		—			—		14,670
Energy		3,690,717		—			—		3,690,717
Financial		19,541,846		—			—		19,541,846
Industrial		13,809,249		—			—		13,809,249
Investment Companies		14,222		—			—		14,222
Technology		9,885,494	$	43,620			—		9,929,114
Utilities		3,420,825		—			—		3,420,825
Short Term Investments		10,807,283		847,000			—		11,654,283
Total Investments in Securities	$	109,126,266	$	890,620		$	172	$	110,017,058
Other Financial Instruments	$	200,160		—			—	$	200,160
Totals	$	109,326,426	$	890,620		$	172	$	110,217,218
Small Cap Opportunities Fund
Basic Materials	$	4,806,790		—			—	$	4,806,790
Communications		9,402,299		—			—		9,402,299
Consumer, Cyclical		18,874,484		—			—		18,874,484
Consumer, Non-cyclical		12,880,253		—			—		12,880,253
Diversified		2,545		—			—		2,545
Energy		7,085,050		—			—		7,085,050
Financial		16,152,381		—			—		16,152,381
Industrial		17,683,829		—			—		17,683,829
Technology		9,162,894		—			—		9,162,894
Utilities		1,906,192		—			—		1,906,192
Short-term Securities		9,964,399	$	1,371,000			—		11,335,399
Total Investments in Securities	$	107,921,116	$	1,371,000			—	$	109,292,116

433

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2		Level 3		Totals
Small Cap Value Fund
Basic Materials	$	2,891,664		—		—	$	2,891,664
Communications		1,036,944		—		—		1,036,944
Consumer, Cyclical		11,726,421		—		—		11,726,421
Consumer, Non-cyclical		13,747,893		—		—		13,747,893
Energy		3,618,641		—		—		3,618,641
Financial		19,770,034		—		—		19,770,034
Industrial		16,893,781		—		—		16,893,781
Technology		3,005,184		—		—		3,005,184
Utilities		4,552,390		—		—		4,552,390
Short Term Investments		—	$	2,207,000		—		2,207,000
Total Investments in Securities	$	77,242,952	$	2,207,000		—	$	79,449,952
Small Company Growth Fund
Basic Materials	$	547,134		—		—	$	547,134
Communications		9,507,593		—		—		9,507,593
Consumer, Cyclical		18,955,425		—		—		18,955,425
Consumer, Non-cyclical		27,870,875		—		—		27,870,875
Energy		7,525,205		—		—		7,525,205
Financial		10,814,408		—		—		10,814,408
Industrial		18,730,872		—		—		18,730,872
Technology		22,849,357		—		—		22,849,357
Utilities		2,146,063		—		—		2,146,063
Short Term Investments		23,222,666	$	4,152,000		—		27,374,666
Total Investments in Securities	$	142,169,598	$	4,152,000		—	$	146,321,598
Small Company Value Fund
Basic Materials	$	32,618,418		—		—	$	32,618,418
Communications		8,973,539		—		—		8,973,539
Consumer, Cyclical		48,372,215		—		—		48,372,215
Consumer, Non-cyclical		48,171,002		—		—		48,171,002
Energy		18,894,713		—		—		18,894,713
Financial		68,293,138	$	4,398,462		—		72,691,600
Industrial		84,660,918		—		—		84,660,918
Investment Companies		4,074,866		—		—		4,074,866
Technology		22,771,030		—		—		22,771,030
Utilities		13,705,533		—		—		13,705,533
Short Term Investments		33,587,486		9,701,717		—		43,289,203
Total Investments in Securities	$	384,122,858	$	14,100,179		—	$	398,223,037
Smaller Company Growth Fund
Basic Materials	$	4,125,702		—		—	$	4,125,702
Communications		25,187,135		—		—		25,187,135
Consumer, Cyclical		26,031,902		—		—		26,031,902
Consumer, Non-cyclical		33,426,921		—		—		33,426,921
Energy		10,508,704		—		—		10,508,704
Financial		12,137,047		—		—		12,137,047
Government		84,432		—		—		84,432
Industrial		24,409,730		—		—		24,409,730
Investment Companies		1,480,320		—		—		1,480,320
Technology		15,518,487		—		—		15,518,487
Utilities		524,728		—		—		524,728
Short Term Investments		10,453,766	$	4,403,000		—		14,856,766
Total Investments in Securities	$	163,888,874	$	4,403,000		—	$	168,291,874
Other Financial Instruments	$	4,181		—		—	$	4,181
Totals	$	163,893,055	$	4,403,000		—	$	168,296,055

434

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1			Level 2			Level 3			Totals
Spectrum Income Fund
Asset Backed Securities		—		$	18,014,836			—		$	18,014,836
Collateralized Mortgage Obligations		—			30,837,094			—			30,837,094
Common Stocks	$	142,990,574			2,878,389			—			145,868,963
Convertible Bonds		—			4,682,310			—			4,682,310
Corporate Bonds		—			317,554,196		$	1,347,695			318,901,891
Foreign Government Obligations		—			101,684,310			180,600			101,864,910
Municipal Bonds		—			2,794,463			—			2,794,463
Preferred Stocks		2,323,873			—			77,000			2,400,873
Supranational Obligations		—			3,326,629			—			3,326,629
Term Loans		—			17,760,547			—			17,760,547
U.S. Government Agency Obligations		—			164,865,637			—			164,865,637
U.S. Treasury Obligations		—			40,848,603			—			40,848,603
Short Term Investments		12,270,597			54,745,551			—			67,016,148
Total Investments in Securities	$	157,585,044		$	759,992,565		$	1,605,295		$	919,182,904
Other Financial Instruments		($60,468	)		($203,277	)		—			($263,745	)
Totals	$	157,524,576		$	759,789,288		$	1,605,295		$	918,919,159
Strategic Bond Fund
Asset Backed Securities		—		$	16,549,943			—		$	16,549,943
Collateralized Mortgage Obligations		—			37,289,416			—			37,289,416
Common Stocks	$	17,841			—			—			17,841
Corporate Bonds		—			204,379,161		$	14,625			204,393,786
Foreign Government Obligations		—			15,759,783			—			15,759,783
Preferred Stocks		391,738			1,734,442			369,380			2,495,560
Purchased Options		119			—			—			119
Supranational Obligations		—			1,635,255			—			1,635,255
Term Loans		—			9,688,605			—			9,688,605
U.S. Government Agency Obligations		—			136,669,425			—			136,669,425
U.S. Treasury Obligations		—			36,907,718			—			36,907,718
Short Term Investments		17,747,069			81,073,213			—			98,820,282
Total Investments in Securities	$	18,156,767		$	541,686,961		$	384,005		$	560,227,733
Other Financial Instruments	$	1,118,467			—			—		$	1,118,467
Totals	$	19,275,234		$	541,686,961		$	384,005		$	561,346,200
Strategic Income Fund
Asset Backed Securities		—		$	2,311,013		$	914,500		$	3,225,513
Collateralized Mortgage Obligations		—			51,069,433			8,760,225			59,829,658
Common Stocks	$	4,445,778			—			—			4,445,778
Convertible Bonds		—			933,100			—			933,100
Corporate Bonds		—			237,600,442			6,846,242			244,446,684
Foreign Government Obligations		—			80,129,571			—			80,129,571
Purchased Options		13,000			74,153			203,591			290,744
Supranational Obligations		—			26,367,748			—			26,367,748
Term Loans		—			13,606,469			273,915			13,880,384
U.S. Government Agency Obligations		—			12,303,564			—			12,303,564
U.S. Treasury Obligations		—			3,842,524			—			3,842,524
Short Term Instruments		—			2,800,000			—			2,800,000
Total Investments in Securities	$	4,458,778		$	431,038,017		$	16,998,473		$	452,495,268
Other Financial Instruments		($327,512	)		($3,813,286	)		($340,874	)		($4,481,672	)
Totals	$	4,131,266		$	427,224,731		$	16,657,599		$	448,013,596
Total Bond Market Fund
Asset Backed Securities		—		$	496,612			—		$	496,612
Collateralized Mortgage Obligations		—			17,618,290			—			17,618,290
Corporate Bonds		—			96,589,334			—			96,589,334
Foreign Government Obligations		—			7,114,987			—			7,114,987
Municipal Bonds		—			1,371,691			—			1,371,691
Supranational Obligations		—			4,687,343			—			4,687,343
U.S. Government Agency Obligations		—			207,321,661			—			207,321,661
U.S. Treasury Obligations		—			107,229,463			—			107,229,463
Short Term Investments	$	2,161,266			12,732,000			—			14,893,266
Total Investments in Securities	$	2,161,266		$	455,161,381			—		$	457,322,647

435

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2			Level 3		Totals
Total Return Fund
Asset Backed Securities		—	$	50,084,957		$	824,791	$	50,909,748
Collateralized Mortgage Obligations		—		112,709,941			—		112,709,941
Corporate Bonds		—		529,381,804			—		529,381,804
Foreign Government Obligations		—		5,482,040			—		5,482,040
Municipal Bonds		—		45,725,458			—		45,725,458
Preferred Stocks	$	9,447,250		315,790			—		9,763,040
Term Loans		—		9,024,006			—		9,024,006
U.S. Government Agency Obligations		—		1,017,449,384			—		1,017,449,384
U.S. Treasury Obligations		—		371,433,217			—		371,433,217
Short Term Investments		—		15,846,510			—		15,846,510
Total Investments in Securities	$	9,447,250	$	2,157,453,107		$	824,791	$	2,167,725,148
Investments in Securities Sold Short		—		($92,355,863	)		—		($92,355,863	)
Other Financial Instruments	$	14,124,237	$	26,623,356			—	$	40,747,593
Totals	$	23,571,487	$	2,091,720,600		$	824,791	$	2,116,116,878
U.S. Government Securities Fund
Asset Backed Securities		—	$	8,259,691		$	283,181	$	8,542,872
Collateralized Mortgage Obligations		—		19,002,310			—		19,002,310
Preferred Stocks	$	84,979		—			—		84,979
U.S. Government Agency Obligations		—		89,503,391			—		89,503,391
U.S. Treasury Obligations		—		10,601,327			—		10,601,327
Short Term Investments		12,522,525		27,688,151			—		40,210,676
Total Investments in Securities	$	12,607,504	$	155,054,870		$	283,181	$	167,945,555
Other Financial Instruments	$	333,094		—			—	$	333,094
Totals	$	12,940,598	$	155,054,870		$	283,181	$	168,278,649
U.S. High Yield Bond Fund
Collateralized Mortgage Obligations		—	$	1,094,537			—	$	1,094,537
Common Stocks		—		—		$	125,003		125,003
Corporate Bonds		—		582,349,657			35,000		582,384,657
Preferred Stocks		—		334,492			127,000		461,492
Term Loans		—		140,603,375			—		140,603,375
Short Term Investments		—		51,469,000			—		51,469,000
Total Investments in Securities		—	$	775,851,061		$	287,003	$	776,138,064
U.S. Multi-Sector Fund
Basic Materials	$	16,061,816		—			—	$	16,061,816
Communications		103,159,086		—			—		103,159,086
Consumer, Cyclical		95,267,484		—			—		95,267,484
Consumer, Non-cyclical		357,930,293		—			—		357,930,293
Energy		88,506,042		—			—		88,506,042
Financial		28,726,864		—			—		28,726,864
Industrial		21,464,621		—			—		21,464,621
Technology		113,009,002		—			—		113,009,002
Utilities		2,739,858		—			—		2,739,858
Short Term Investments		34,463,890	$	38,096,000			—		72,559,890
Total Investments in Securities	$	861,328,956	$	38,096,000			—	$	899,424,956
Other Financial Instruments	$	1,573,248		—			—	$	1,573,248
Totals	$	862,902,204	$	38,096,000			—	$	900,998,204
Value Fund
Basic Materials	$	4,329,790		—			—	$	4,329,790
Consumer, Cyclical		11,079,530		—			—		11,079,530
Consumer, Non-cyclical		25,203,905		—			—		25,203,905
Energy		6,985,793		—			—		6,985,793
Financial		28,552,932		—			—		28,552,932
Industrial		20,627,106		—			—		20,627,106
Technology		13,160,692		—			—		13,160,692
Utilities		7,505,675		—			—		7,505,675
Short Term Investments		6,867,760	$	5,800,000			—		12,667,760
Total Investments in Securities	$	124,313,183	$	5,800,000			—	$	130,113,183

436

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Investments in Securities	Level 1		Level 2		Level 3		Totals
Value & Restructuring Fund
Basic Materials	$	58,555,397	$	6,168,445		—	$	64,723,842
Communications		50,384,756		—		—		50,384,756
Consumer, Cyclical		21,179,098		—		—		21,179,098
Consumer, Non-cyclical		70,520,547		—	$	25,596		70,520,547
Energy		122,330,154		—		—		122,330,154
Financial		88,376,122		—		—		88,401,718
Industrial		75,738,808		—		—		75,738,808
Technology		15,398,678		—		—		15,398,678
Utilities		—		3,615,589		—		3,615,589
Short Term Investments		31,457,457		—		—		31,457,457
Total Investments in Securities	$	533,941,017	$	9,784,034	$	25,596	$	543,750,647
Vista Fund
Basic Materials	$	12,561,459		—		—	$	12,561,459
Communications		25,627,507		—		—		25,627,507
Consumer, Cyclical		43,236,954		—		—		43,236,954
Consumer, Non-cyclical		28,181,766		—		—		28,181,766
Energy		19,772,788		—		—		19,772,788
Financial		26,976,836		—		—		26,976,836
Industrial		24,524,958		—		—		24,524,958
Technology		38,039,917		—		—		38,039,917
Short Term Investments		15,621,056	$	4,805,000		—		20,426,056
Total Investments in Securities	$	234,543,241	$	4,805,000		—	$	239,348,241

 

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value.

Active Bond Fund
	Asset Backed Securities			Collateralized Mortgage Obligations			Corporate Bonds			Totals
Balance as of 8/31/08	$	10,570,835		$	4,027,533		$	662,887		$	15,261,255
Accrued discounts/premiums		33,938			—			—			33,938
Realized gain (loss)		(767,361	)		169,303			—			(598,058	)
Change in unrealized appreciation (depreciation)		(5,144,340	)		856,443			(159,287	)		(4,447,184	)
Net purchases (sales)		(1,036,139	)		(413,018	)		—			(1,449,157	)
Net transfers in and/out of Level 3		—			524,852			—			524,852
Balance as of 8/31/09	$	3,656,933		$	5,165,113		$	503,600		$	9,325,646

 

Core Bond Fund
	Asset Backed Securities			Collateralized Mortgage Obligations		Totals
Balance as of 8/31/08	$	1,439,613			—	$	1,439,613
Accrued discounts/premiums		—			—		—
Realized gain (loss)		(165,998	)		—		(165,998	)
Change in unrealized appreciation (depreciation)		37,387		$	5,881		43,268
Net purchases (sales)		(1,311,002	)		550,442		(760,560	)
Net transfers in and/out of Level 3		—			—		—
Balance as of 8/31/09		—		$	556,323	$	556,323

 

Emerging Markets Value
	India
Balance as of 8/31/08	$	148,620
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		(128,806	)
Net purchases (sales)		—
Net transfers in and/out of Level 3		(3,254	)
Balance as of 8/31/09	$	16,560

 

437

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Equity-Income Fund
	Financials
Balance as of 8/31/08	$	5,492,346
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		307,654
Net purchases (sales)		(5,800,000	)
Net transfers in and/out of Level 3		—
Balance as of 8/31/09		—

 

Fundamental Value Fund
	Convertible Bonds
Balance as of 8/31/08	$	2,457,280
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)		—
Net purchases (sales)		—
Net transfers in and/out of Level 3		(2,457,280	)
Balance as of 8/31/09		—

 

Global Bond Fund
	Asset Backed Securities			Collateralized Mortgage Obligations			Corporate Bonds			Totals
Balance as of 8/31/08	$	2,673,000		$	12,946,388		$	4,756,498		$	20,375,886
Accrued discounts/premiums		3,042			6,405			—			9,447
Realized gain (loss)		(2,159	)		8,860			146,877			153,578
Change in unrealized appreciation (depreciation)		(59,250	)		62,822			64,169			67,741
Net purchases (sales)		700,269			(2,363,390	)		983,057			(680,064	)
Net transfers in and/out of Level 3		(2,007,934	)		(9,022,519	)		(3,834,706	)		(14,865,159	)
Balance as of 8/31/09	$	1,306,968		$	1,638,566		$	2,115,895		$	5,061,429

 

Global Real Estate Fund
	Other Countries
Balance as of 8/31/08		—
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)	$	7
Net purchases (sales)		—
Net transfers in and/out of Level 3		—
Balance as of 8/31/09	$	7

 

High Income Fund
	Asset Backed Securities			Collateralized Mortgage Obligations			Common Stocks			Corporate Bonds			Purchased Options			Term Loans			Totals			Other Financial Instruments
Balance as of 8/31/08	$	2,225,000		$	13,045,404		$	397,090		$	19,466,226			—		$	2,441,400		$	37,575,120			—
Accrued discounts/premiums		1			1,425			—			1,099,435			—			(4,655	)		1,096,206			—
Realized gain (loss)		—			64			(71,846	)		—			—			(43,820	)		(115,602	)		—
Change in unrealized appreciation (depreciation)		(17,801	)		(3,457,676	)	��	(253,270	)		(2,068,972	)		($181,104	)		(606,406	)		(6,585,229	)	$	2,587,592
Net purchases (sales)		—			(7,009,419	)		(71,974	)		15,286,827			—			682,588			8,888,022			(3,523,100	)
Net transfers in and/out of Level 3		—			265,584			—			(5,210,461	)		1,116,612			(1,113,750	)		(4,942,015	)		—
Balance as of 8/31/09	$	2,207,200		$	2,845,382			—		$	28,573,055		$	935,508		$	1,355,357		$	35,916,502			($935,508	)

 

438

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

High Yield Fund
	Common Stocks			Corporate Bonds			Foreign Government Obligations			Preferred Stocks			Term Loans			Warrants			Totals
Balance as of 8/31/08	$	92,607			—		$	3,003,424			—		$	2,646,640		$	107,308		$	5,849,979
Accrued discounts/premiums		—		$	49,306			47,406			—			—			—			96,712
Realized gain (loss)		(2,427,202	)		5,049			(19,554	)		—			(162,218	)		—			(2,603,925	)
Change in unrealized appreciation (depreciation)		2,334,595			(178,711	)		159,554			($2,001,996	)		(974,239	)		(31,058	)		(691,855	)
Net purchases (sales)		—			911,283			(411,712	)		7,863,767			(361,565	)		1,361			8,003,134
Net transfers in and/out of Level 3		—			67,325			(2,519,385	)		4,000			—			—			(2,448,060	)
Balance as of 8/31/09		—		$	854,252		$	259,733		$	5,865,771		$	1,148,618		$	77,611		$	8,205,985

 

International Equity Index Fund
	Australia			Norway			Totals
Balance as of 8/31/08		—		$	49,973		$	49,973
Accrued discounts/premiums		—			—			—
Realized gain (loss)	$	2,343			(36,898	)		(34,555	)
Change in unrealized appreciation (depreciation)		—			6,621			6,621
Net purchases (sales)		(2,343	)		(19,696	)		(22,039	)
Net transfers in and/out of Level 3		—			—			—
Balance as of 8/31/09		—			—			—

 

International Small Company Fund
	Australia			Canada			Denmark			Greece			Japan			Norway			Sweden			United States			Totals
Balance as of 8/31/08	$	286,427			—			—			—			—		$	547,306		$	5,581			—		$	839,314
Accrued discounts/premiums		—			—			—			—			—			—			—			—			—
Realized gain (loss)		2,920			—			—			—			—			—			(503	)		—			2,417
Change in unrealized appreciation (depreciation)		(66,891	)		($27,336	)		($19,851	)		($18,518	)		($31,495	)		—			(660,774	)		($6,092	)		(830,957	)
Net purchases (sales)		(4,965	)		—			—			—			—			—			(5,490	)		—			(10,455	)
Net transfers in and/out of Level 3		(215,551	)		27,336			19,851			18,518			31,495			(547,306	)		661,186			6,092			1,621
Balance as of 8/31/09	$	1,940			—			—			—			—			—			—			—		$	1,940

 

Investment Quality Bond Fund
	Corporate Bonds
Balance as of 8/31/08	$	22,342
Accrued discounts/premiums		553
Realized gain (loss)		(63,470	)
Change in unrealized appreciation (depreciation)		64,065
Net purchases (sales)		(23,490	)
Net transfers in and/out of Level 3		—
Balance as of 8/31/09		—

 

Real Return Bond Fund
	Collateralized Mortgage Obligations			Corporate Bonds			Totals
Balance as of 8/31/08		—		$	585,998		$	585,998
Accrued discounts/premiums	$	8,179			—			8,179
Realized gain (loss)		—			—			—
Change in unrealized appreciation (depreciation)		(167,654	)		—			(167,654	)
Net purchases (sales)		—			—			—
Net transfers in and/out of Level 3		4,809,475			(585,998	)		4,223,477
Balance as of 8/31/09	$	4,650,000			—		$	4,650,000

 

439

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Small Cap Index Fund
	Consumer, Non-cyclical
Balance as of 8/31/08		—
Accrued discounts/premiums		—
Realized gain (loss)		—
Change in unrealized appreciation (depreciation)	$	172
Net purchases (sales)		—
Net transfers in and/out of Level 3		—
Balance as of 8/31/09	$	172

 

Small Cap Opportunities Fund
	Communications
Balance as of 8/31/08	$	156,600
Accrued discounts/premiums		—
Realized gain (loss)		(1,127,333	)
Change in unrealized appreciation (depreciation)		993,690
Net purchases (sales)		(22,957	)
Net transfers in and/out of Level 3		—
Balance as of 8/31/09		—

 

Spectrum Income Fund
	Common Stock			Corporate Bonds			Foreign Government Obligations			Preferred Stock			Totals
Balance as of 8/31/08	$	1,013,808		$	981,871		$	158,700		$	302,400		$	2,456,779
Accrued discounts/premiums		—			27,388			4,163			—			31,551
Realized gain (loss)		—			4,162			(26	)		(67	)		4,069
Change in unrealized appreciation (depreciation)		86,192			(127,308	)		(57,237	)		(122,395	)		(220,748	)
Net purchases (sales)		(1,100,000	)		461,582			75,000			(291,938	)		(855,356	)
Net transfers in and/out of Level 3		—			—			—			189,000			189,000
Balance as of 8/31/09		—		$	1,347,695		$	180,600		$	77,000		$	1,605,295

 

Strategic Bond Fund
	Collateralized Mortgage Obligations			Common Stocks			Corporate Bonds			Preferred Stocks			Totals
Balance as of 8/31/08	$	9,587,737		$	6,746		$	1,669,615			—		$	11,264,098
Accrued discounts/premiums		932			—			1,106			—			2,038
Realized gain (loss)		68,451			(183,738	)		(17,205	)		—			(132,492	)
Change in unrealized appreciation (depreciation)		148,455			176,992			(168	)		($88,359	)		236,920
Net purchases (sales)		(4,586,056	)		—			(23,723	)		457,739			(4,152,040	)
Net transfers in and/out of Level 3		(5,219,519	)		—			(1,615,000	)		—			(6,834,519	)
Balance as of 8/31/09		—			—		$	14,625		$	369,380		$	384,005

 

Strategic Income Fund
	Asset Backed Securities			Collateralized Mortgage Obligations			Corporate Bonds		Purchased Options			Term Loans			Totals		Other Financial Instruments
Balance as of 8/31/08	$	921,875		$	5,950,538		$	514,800	$	68,472			—		$	7,455,685		—
Accrued discounts/premiums		—			(12,030	)		131,504		—			—			119,474		—
Realized gain (loss)		—			212			—		1,597,952			—			1,598,164		—
Change in unrealized appreciation (depreciation)		(7,375	)		3,292,346			1,728,537		(434,788	)		($5,590	)		4,573,130	$	402,748
Net purchases (sales)		—			(485,015	)		4,471,401		(1,364,762	)		279,505			2,901,129		(743,622	)
Net transfers in and/out of Level 3		—			14,174			—		336,717			—			350,891		—
Balance as of 8/31/09	$	914,500		$	8,760,225		$	6,846,242	$	203,591		$	273,915		$	16,998,473		($340,874	)

 

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Total Return Fund
	Asset Backed Securities			Corporate Bonds			Totals
Balance as of 8/31/08	$	11,187,000		$	4,712,500		$	15,899,500
Accrued discounts/premiums		243			—			243
Realized gain (loss)		1,595			—			1,595
Change in unrealized appreciation (depreciation)		(172,058	)		—			(172,058	)
Net purchases (sales)		(335,121	)		—			(335,121	)
Net transfers in and/out of Level 3		(9,856,868	)		(4,712,500	)		(14,569,368	)
Balance as of 8/31/09	$	824,791			—		$	824,791

 

U.S. Government Securities Fund
	Asset Backed Securities			Collateralized Mortgage Obligations			Totals
Balance as of 8/31/08	$	1,106,524		$	1,987,549		$	3,094,073
Accrued discounts/premiums		—			279			279
Realized gain (loss)		(330	)		27,447			27,117
Change in unrealized appreciation (depreciation)		(33,811	)		58,210			24,399
Net purchases (sales)		(274,924	)		(1,809,511	)		(2,084,435	)
Net transfers in and/out of Level 3		(514,278	)		(263,974	)		(778,252	)
Balance as of 8/31/09	$	283,181			—		$	283,181

 

U.S. High Yield Bond Fund
	Common Stock			Corporate Bonds			Preferred Stock		Totals
Balance as of 8/31/08		—			—			—		—
Accrued discounts/premiums		—		$	45,389			—	$	45,389
Realized gain (loss)		—			—			—		—
Change in unrealized appreciation (depreciation)		($624,997	)		(360,389	)		—		(985,386	)
Net purchases (sales)		750,000			—		$	127,000		877,000
Net transfers in and/out of Level 3		—			350,000			—		350,000
Balance as of 8/31/09	$	125,003		$	35,000		$	127,000	$	287,003

 

Value & Restructuring Fund
	Communications			Consumer, Non-cyclical			Totals
Balance as of 8/31/08	$	120,000		$	88,261		$	208,261
Accrued discounts/premiums		—			—			—
Realized gain (loss)		(846,372	)		—			(846,372	)
Change in unrealized appreciation (depreciation)		760,000			178,287			938,287
Net purchases (sales)		(33,628	)		(240,952	)		(274,580	)
Net transfers in and/out of Level 3		—			—			—
Balance as of 8/31/09		—		$	25,596		$	25,596

 

When-Issued/Delayed-Delivery Securities  All Funds of the Trust described in this report may purchase or sell debt securities on a when-issued or delayed delivery basis. These transactions involve a commitment by a Fund to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed-delivery purchases are outstanding, a Fund is required to have sufficient cash and/or liquid securities to cover its commitments on these transactions. When purchasing a security on a delayed-delivery basis, a Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its NAV. A Fund may dispose of or renegotiate a delayed-delivery transaction after it is entered into, and may sell delayed-delivery securities before they are delivered, which may result in a capital gain or loss. When a Fund has sold a security on a delayed-delivery basis, the Fund does not participate in future gains and losses with respect to the security. The Fund may receive compensation for interest foregone in the purchase of delayed-delivery securities. The market values of the securities purchased on a forward-delivery basis are identified in the Portfolio of Investments.

In a “To Be Announced” (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 they are delivered to the Fund, normally 15 to 45 days later.

In connection with TBA transactions, certain Funds may maintain a short position of certain securities. In connection with these transactions, a Fund owns an equal amount of the securities or holds securities convertible (or exchangeable) into an equal amount of the securities, of the same issuer, as the positions held short.

Term Loans  Fees associated with loan amendments are accrued daily. At period end, the total principal amount and market value of unfunded commitments totaled $1,013,937 and $993,658 for High Income Fund and $411,912 and $403,674 for Strategic Income Fund, which could be extended at the option of the borrower and which are covered by sufficient cash and/or liquid securities held by the Funds.

Loan participations and assignments  A 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 a 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 a Fund and would likely

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reduce the value of its assets. Because a significant percentage of loans and loan participations are not generally rated by independent credit rating agencies, a decision by a 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. A Fund may have limited rights to enforce the terms of an underlying loan.

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 a third-party custodian bank in a segregated account for the benefit of the Funds.

Security Transactions and Related Investment Income  Investment security transactions are accounted for on a trade date plus one basis for daily net asset value calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Dividend income is recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend 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.

Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to a rate of inflation (both increase or decrease), such as the Consumer Price Index. 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 on a principal value which is adjusted for inflation as described above. Any increase in the principal amount of an inflation-indexed bond will be included as interest income on the Statements of Operations. Any decrease in this amount is included in interest income, only to the extent of income recorded, with the excess recorded as an adjustment to cost. Investors do not receive principal until maturity. Interest income includes accretion of discounts and amortization of premiums as well as accretion or amortization of principal of inflation index protected securities.

Certain Funds may invest in Real Estate Investment Trusts (REITs) and, as a result, will estimate the components of distributions from these securities. Distributions from REITs received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain.

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

Securities Lending  Certain Funds may lend portfolio securities from time to time in order to earn additional income. The Funds retain beneficial ownership of the securities they have loaned and continue to receive interest and dividends associated with the securities and participate in any changes in their value. On the settlement date of the loan, the Funds receive cash collateral against the loaned securities and maintain the cash collateral in an amount no less than the market value of the loaned securities.

The market value of the loaned securities is determined at the close of business of the Funds. Any additional required cash collateral is delivered to the Funds or excess collateral is returned to the borrower on the next business day. Cash collateral received is invested in JHCIT. JHCIT is not a stable value fund and thus the Funds receive the benefit of any gains and bear any losses generated by JHCIT.

The Funds receive compensation for lending their securities either in the form of fees, and/or by retaining a portion of interest on the investment of any cash received as collateral. 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 bear the risk in the event that invested collateral is not sufficient to meet obligations due on loans.

Foreign Currency Translation  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.

Stripped securities  Stripped mortgage backed securities are financial instruments that derive their value from other instruments so that one class receives all of the principal from the underlying mortgage assets (principal only (PO)), while the other class receives the interest cash flows (interest only (IO)). Both the PO and IO investments represent an interest in the cash flows of an underlying stripped mortgage backed security. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Funds may fail to fully recoup their initial investment in an interest only security. The market value of these securities can be extremely volatile in response to changes in interest rates. Credit risk reflects the risk that the Funds may not receive all or part of their principal because the issuer or credit enhancer has defaulted on its obligation.

Line of Credit  The Funds and other affiliated funds have entered into an agreement which enables them to participate in a $300 million unsecured committed line of credit with the custodian. The Funds are permitted to have bank borrowings for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. 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 0.08% 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.

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

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. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Class Allocations  Income, common expenses and realized and unrealized gains (losses) are determined at the Fund level and allocated daily to each class of shares based on the appropriate net asset value of the respective class. Dividends from net investment income are determined at a class level and distributions from capital gains are determined at the Fund level. Class-specific expenses, such as distribution (Rule 12b-1) fees, are calculated and accrued 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.

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 period ended August 31, 2009, the following Funds received rebates:

Fund	Rebate Amount
All Cap Growth Fund	$	26,505
All Cap Value Fund		11,403
Alpha Opportunities Fund		73,594
Blue Chip Growth Fund		62,327
Capital Appreciation Fund		202,231
Emerging Small Company Fund		22,002
Equity-Income Fund		18,269
Fundamental Value Fund		105,376
International Equity Index Fund		3,064
Large Cap Fund		51,416
Mid Cap Stock Fund		128,871
Mid Cap Value Equity Fund		17,968
Mid Value Fund		6,055
Natural Resources Fund		2,965
Small Cap Growth Fund		41,742
Small Cap Opportunities Fund		30,359
Small Cap Value Fund		132
Small Company Growth Fund		13,999
Small Company Value Fund		10,096
Smaller Company Growth Fund		53,190

 

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 have 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, it will reduce the amount of capital gain distributions to be paid.

At August 31, 2009, capital loss carryforwards available to offset future realized gains were as follows:

	CAPITAL LOSS CARRYFORWARDS EXPIRING AT AUGUST 31
Fund	2014		2015		2016		2017
Active Bond Fund		—		—		—	$2,990,983
All Cap Core Fund		—		—		—	161,190,786
All Cap Growth Fund		—		—		—	1,084,487
All Cap Value Fund		—		—		—	4,959,533
Blue Chip Growth Fund		—		—	$	30,360	201,660,850
Capital Appreciation Fund	$	21,055	$	15,745,631		7,209,640	158,945,659
Emerging Markets Value Fund		—		—		—	4,431,750
Emerging Small Company Fund		—		35,683		—	15,350,147
Equity-Income Fund		—		—		—	77,245,378
Fundamental Value Fund		—		—		—	67,420,909
Global Bond Fund		—		—		—	28,473,982
Global Real Estate Fund		—		—		9,668,659	49,590,388
High Income Fund		—		—		—	6,152,875
High Yield Fund		—		—		991,060	66,823,008
Index 500 Fund		—		—		—	15,771,272
International Equity Index Fund		—		—		—	3,637,697
International Opportunities Fund		—		—		—	124,967,978
International Value Fund		—		—		—	15,012,374
Investment Quality Bond Fund		—		—		—	3,399,479
Large Cap Fund		—		—		—	40,144,744
Large Cap Value Fund		—		—		2,565,968	78,527,943
Mid Cap Index Fund		—		—		—	2,614,050
Mid Cap Stock Fund		—		—		—	84,455,365
Mid Cap Value Equity Fund		—		—		—	1,586,750
Natural Resources Fund		—		—		—	3,213,814
Real Estate Equity Fund		—		—		—	9,589,346
Real Estate Securities Fund		—		—		—	6,783,480
Real Return Bond Fund		—		—		—	10,772,813

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	CAPITAL LOSS CARRYFORWARDS EXPIRING AT AUGUST 31
Fund	2014		2015		2016		2017
Small Cap Growth Fund		—		—		—	$1,399,542
Small Cap Index Fund		—		—		—	868,942
Small Cap Opportunities Fund		—		—	$	869,705	13,904,174
Small Company Growth Fund		—		—		—	14,620,860
Small Company Value Fund		—		—		—	7,019,758
Smaller Company Growth Fund		—		—		—	486,270
Spectrum Income Fund		—		—		—	16,131,303
Strategic Bond Fund		—	$	521,499		—	626,128
U.S. High Yield Bond Fund		—		—		469,396	13,647,086
U.S. Multi Sector Fund		—		—		3,502,461	108,759,462
Value Fund		—		—		—	2,323,653
Value & Restructuring Fund		—		—		1,288,503	52,994,469
Vista Fund		—		—		—	9,624,048

 

As of August 31, 2009, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition or disclosure. Each of the Funds’ federal tax returns filed in the three years ended August 31, 2009, remains subject to examination by the Internal Revenue Service.

The costs of investments owned on August 31, 2009, including short-term investments, for federal income tax purposes, were as follows:

Fund	Aggregate Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Active Bond Fund	$	597,234,215	$	31,273,769		($53,565,779	)		($22,292,010	)
All Cap Core Fund		458,332,120		56,200,773		(19,460,155	)		36,740,618
All Cap Growth Fund		84,731,602		11,842,390		(5,838,984	)		6,003,406
All Cap Value Fund		343,963,119		39,498,267		(5,989,348	)		33,508,919
Alpha Opportunities Fund		670,886,313		94,931,170		(21,341,005	)		73,590,165
Alternative Asset Allocation Fund		1,003,083		267,675		—			267,675
American Diversified Growth & Income Portfolio		10,559,521		1,074,045		(87,903	)		986,142
American Fundamental Holdings Portfolio		7,274,419		671,162		—			671,162
American Global Diversification Portfolio		7,087,943		752,849		(91,399	)		661,450
Blue Chip Growth Fund		1,272,910,632		256,289,724		(74,248,598	)		182,041,126
Capital Appreciation Fund		1,065,070,413		190,148,273		(47,271,285	)		142,876,988
Core Bond Fund		453,892,825		12,946,373		(2,333,742	)		10,612,631
Emerging Markets Value Fund		970,527,449		219,816,845		(68,476,508	)		151,340,337
Emerging Small Company Fund		29,551,502		5,007,829		(2,596,269	)		2,411,560
Equity-Income Fund		903,851,799		56,683,320		(121,691,343	)		(65,008,023	)
Fundamental Value Fund		1,558,583,119		108,570,997		(147,349,172	)		(38,778,175	)
Global Agribusiness Fund		1,976,786		301,166		(35,035	)		266,131
Global Bond Fund		681,134,460		21,229,121		(51,884,943	)		(30,655,822	)
Global Infrastructure Fund		1,947,236		180,998		(73,987	)		107,011
Global Real Estate Fund		311,854,251		67,780,453		(85,293,735	)		(17,513,282	)
Global Timber Fund		1,806,689		511,581		(38,723	)		472,858
High Income Fund		602,788,491		40,253,962		(208,389,697	)		(168,135,735	)
High Yield Fund		1,091,531,137		54,855,520		(205,067,886	)		(150,212,366	)
Index 500 Fund		1,857,920,615		216,476,770		(148,851,043	)		67,625,727
International Equity Index Fund		322,831,211		36,891,386		(42,253,234	)		(5,361,848	)
International Opportunities Fund		664,095,037		141,885,670		(61,472,837	)		80,412,833
International Small Cap Fund		256,693,235		43,758,932		(55,962,705	)		(12,203,773	)
International Small Company Fund		165,783,802		13,490,946		(45,671,718	)		(32,180,772	)
International Value Fund		1,326,557,321		84,818,454		(213,464,997	)		(128,646,543	)
Investment Quality Bond Fund		182,576,607		6,559,675		(4,872,582	)		1,687,093
Large Cap Fund		238,261,267		23,719,527		(29,578,451	)		(5,858,924	)
Large Cap Value Fund		541,099,690		42,588,769		(42,037,308	)		551,461
Mid Cap Index Fund		598,696,247		37,587,926		(65,953,848	)		(28,365,922	)
Mid Cap Stock Fund		678,509,275		105,558,219		(20,749,979	)		84,808,240
Mid Cap Value Equity Fund		173,771,845		18,605,038		(12,694,594	)		5,910,444
Mid Value Fund		252,410,311		46,961,816		(1,862,409	)		45,099,407
Natural Resources Fund		760,529,464		40,330,414		(68,546,851	)		(28,216,437	)
Real Estate Equity Fund		322,879,541		33,789,710		(85,249,933	)		(51,460,223	)
Real Estate Securities Fund		87,558,900		13,649,345		(12,424,979	)		1,224,366
Real Return Bond Fund		1,401,123,017		26,906,956		(48,313,772	)		(21,406,816	)
Short Term Government Income Fund		24,565,445		88,632		(67,393	)		21,239
Small Cap Growth Fund		103,149,658		24,904,624		(3,824,886	)		21,079,738
Small Cap Index Fund		104,341,157		23,528,036		(17,852,135	)		5,675,901
Small Cap Opportunities Fund		99,067,020		20,660,842		(10,435,746	)		10,225,096

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Fund	Aggregate Cost		Unrealized Appreciation		Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)
Small Cap Value Fund	$	68,291,071	$	11,586,763		($427,882	)	$	11,158,881
Small Company Growth Fund		141,217,535		16,463,399		(11,359,336	)		5,104,063
Small Company Value Fund		410,053,841		52,373,747		(64,204,551	)		(11,830,804	)
Smaller Company Growth Fund		144,030,187		28,499,597		(4,237,910	)		24,261,687
Spectrum Income Fund		915,054,786		46,826,856		(42,698,738	)		4,128,118
Strategic Bond Fund		621,303,382		15,295,321		(76,370,970	)		(61,075,649	)
Strategic Income Fund		458,409,828		33,333,095		(39,247,655	)		(5,914,560	)
Total Bond Market Fund		441,367,332		17,598,438		(1,643,123	)		15,955,315
Total Return Fund		2,186,740,434		51,434,858		(70,450,144	)		(19,015,286	)
U.S. Government Securities Fund		188,293,876		3,222,957		(23,571,278	)		(20,348,321	)
U.S. High Yield Bond Fund		782,705,160		19,296,420		(25,863,516	)		(6,567,096	)
U.S. Multi Sector Fund		922,714,217		51,926,109		(75,215,370	)		(23,289,261	)
Value Fund		115,976,763		16,844,614		(2,708,194	)		14,136,420
Value & Restructuring Fund		523,159,886		76,662,420		(56,071,659	)		20,590,761
Vista Fund		215,487,652		27,179,099		(3,318,510	)		23,860,589

 

Distribution of Income and Gains  The Funds record distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Funds generally declare and pay dividends and capital gain distributions, if any, annually, with the exception of Active Bond Fund, Core Bond Fund, Global Agribusiness Fund, Global Bond Fund, Global Infrastructure Fund, Global Timber Fund, High Income Fund, High Yield Fund, Investment Quality Bond Fund, Real Return Bond Fund, Spectrum Income Fund, Strategic Bond Fund, Strategic Income Fund, Total Bond Market Fund, Total Return Fund, U.S. Government Securities Fund and U.S. High Yield Bond Fund, which generally declare and pay dividends quarterly and capital gain distributions, if any, annually. 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.

During the year ended August 31, 2009, the tax character of distributions paid was as follows:

	2009 Distributions
Fund	Ordinary Income		Long Term Capital Gains		Return of Capital		Total
Active Bond Fund	$	34,012,348		—		—	$	34,012,348
All Cap Core Fund		7,244,316	$	41,865		—		7,286,181
All Cap Growth Fund		301,962		991,460		—		1,293,422
All Cap Value Fund		788,351		2,409,045		—		3,197,396
Alpha Opportunities Fund		268,998		—		—		268,998
Alternative Asset Allocation Fund		—		—		—		—
American Diversified Growth & Income Portfolio		47,109		—		—		47,109
American Fundamental Holdings Portfolio		29,345		—		—		29,345
American Global Diversification Portfolio		34,804		—		—		34,804
Blue Chip Growth Fund		4,364,440		—		—		4,364,440
Capital Appreciation Fund		3,933,896		—		—		3,933,896
Core Bond Fund		11,962,010		—		—		11,962,010
Emerging Markets Value Fund		21,646,182		—		—		21,646,182
Emerging Small Company Fund		—		—		—		—
Equity-Income Fund		28,088,333		57,190,163		—		85,278,496
Fundamental Value Fund		14,461,431		—		—		14,461,431
Global Agribusiness Fund		9,038		—		—		9,038
Global Bond Fund		109,510,063		1,362,975		—		110,873,038
Global Infrastructure Fund		23,775		—		—		23,775
Global Real Estate Fund		16,836,266		—		—		16,836,266
Global Timber Fund		8,883		—		—		8,883
High Income Fund		57,336,025		—		—		57,336,025
High Yield Fund		150,285,305		—		—		150,285,305
Index 500 Fund		19,525,474		1,984		—		19,527,458
International Equity Index Fund		8,410,085		981,866		—		9,391,951
International Opportunities Fund		8,031,464		—		—		8,031,464
International Small Cap Fund		6,805,850		30,285,300		—		37,091,150
International Small Company Fund		5,873,880		6,624,270		—		12,498,150
International Value Fund		44,157,796		31,822,867		—		75,980,663
Investment Quality Bond Fund		9,719,801		—		—		9,719,801
Large Cap Fund		4,770,863		—		—		4,770,863
Large Cap Value Fund		7,889,477		—		—		7,889,477
Mid Cap Index Fund		3,808,357		5,520,714		—		9,329,071
Mid Cap Stock Fund		143,548		—		—		143,548
Mid Cap Value Equity Fund		922,845		2,028,270		—		2,951,115
Mid Value Fund		—		—		—		—

445

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

	2009 Distributions
Fund	Ordinary Income		Long Term Capital Gains		Return of Capital		Total
Natural Resources Fund	$	8,780,904	$	113,542,261		—	$	122,323,165
Real Estate Equity Fund		6,681,025		322,418		—		7,003,443
Real Estate Securities Fund		2,120,432		761,425		—		2,881,857
Real Return Bond Fund		111,080,688		5,659,800		—		116,740,488
Short Term Government Income Fund		—		—		—		—
Small Cap Growth Fund		—		—		—		—
Small Cap Index Fund		1,185,763		2,170,170		—		3,355,933
Small Cap Opportunities Fund		1,800,830		—		—		1,800,830
Small Cap Value Fund		—		—		—		—
Small Company Growth Fund		—		—		—		—
Small Company Value Fund		3,278,459		8,220,270		—		11,498,729
Smaller Company Growth Fund		—		—		—		—
Spectrum Income Fund		52,240,259		5,857,978		—		58,098,237
Strategic Bond Fund		26,511,961		—		—		26,511,961
Strategic Income Fund		50,543,103		—		—		50,543,103
Total Bond Market Fund		11,789,910		—		—		11,789,910
Total Return Fund		148,674,669		28,166,221		—		176,840,890
U.S. Government Securities Fund		13,254,827		3,296,755		—		16,551,582
U.S. High Yield Bond Fund		44,730,410		—		—		44,730,410
U.S. Multi Sector Fund		14,280,412		—		—		14,280,412
Value Fund		228,535		—		—		228,535
Value & Restructuring Fund		5,685,628		—		—		5,685,628
Vista Fund		159,644		14,136,624		—		14,296,268

 

During the year ended August 31, 2008, the tax character of distributions paid was as follows:

	2008 Distributions
Fund	Ordinary Income		Long Term Capital Gains		Return of Capital		Total
Active Bond Fund	$	30,653,584		—		—	$	30,653,584
All Cap Core Fund		29,104,571	$	3,995,859		—		33,100,430
All Cap Growth Fund		2,022,589		7,048,943		—		9,071,532
All Cap Value Fund		10,433,775		21,933,631		—		32,367,406
American Diversified Growth & Income Portfolio		—		—		—		—
American Fundamental Holdings Portfolio		—		—		—		—
American Global Diversification Portfolio		—		—		—		—
Blue Chip Growth Fund		15,545,901		224,978		—		15,770,879
Capital Appreciation Fund		2,573,553		—		—		2,573,553
Core Bond Fund		12,957,719		—		—		12,957,719
Emerging Markets Value Fund		8,770,631		—		—		8,770,631
Emerging Small Company Fund		—		—		—		—
Equity-Income Fund		20,617,820		41,991,685		—		62,609,505
Fundamental Value Fund		14,055,893		7,969,498		—		22,025,391
Global Bond Fund		43,039,332		4,490,207		—		47,529,539
Global Real Estate Fund		31,036,600		4,807,187		—		35,843,787
High Income Fund		45,043,435		4,519,804		—		49,563,239
High Yield Fund		148,386,992		4,440,144		—		152,827,136
Index 500 Fund		2,040,133		440,461		—		2,480,594
International Equity Index Fund		12,749,571		9,864,410		—		22,613,981
International Opportunities Fund		55,500,786		48,677,774		—		104,178,560
International Small Cap Fund		21,315,357		54,644,506		—		75,959,863
International Small Company Fund		17,675,776		6,060,030		—		23,735,806
International Value Fund		47,331,367		69,502,776		—		116,834,143
Investment Quality Bond Fund		9,466,495		—		—		9,466,495
Large Cap Fund		10,098,562		3,859,801		—		13,958,363
Large Cap Value Fund		11,807,806		8,031,102		—		19,838,908
Mid Cap Index Fund		17,664,488		21,697,544		—		39,362,032
Mid Cap Stock Fund		26,044,310		20,506,411		—		46,550,721
Mid Cap Value Equity Fund		2,493,636		1,556,380		—		4,050,016
Natural Resources Fund		17,812,018		193,158,194		—		210,970,212
Real Estate Equity Fund		22,998,345		7,512,176		—		30,510,521
Real Estate Securities Fund		6,289,168		15,773,539		—		22,062,707
Real Return Bond Fund		45,676,499		—		—		45,676,499

446

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

	2008 Distributions
Fund	Ordinary Income		Long Term Capital Gains		Return of Capital		Total
Small Cap Index Fund	$	4,118,742	$	10,517,153		—	$	14,635,895
Small Cap Opportunities Fund		3,237,091		849,362		—		4,086,453
Small Company Growth Fund		1,370,507		3,730,653		—		5,101,160
Small Company Value Fund		4,002,630		18,071,903		—		22,074,533
Spectrum Income Fund		52,378,455		10,201,255		—		62,579,710
Strategic Bond Fund		29,786,818		—		—		29,786,818
Strategic Income Fund		17,879,553		—		—		17,879,553
Total Bond Market Fund	��	2,693,946		—		—		2,693,946
Total Return Fund		93,846,297		—		—		93,846,297
U.S. Government Securities Fund		8,402,579		—		—		8,402,579
U.S. High Yield Bond Fund		32,700,930		109,905		—		32,810,835
U.S. Multi Sector Fund		40,391,149		30,744,288		—		71,135,437
Value Fund		966,663		—		—		966,663
Value & Restructuring Fund		7,516,364		—		—		7,516,364
Vista Fund		2,470,692		10,280,477		—		12,751,169

 

As of August 31, 2009, 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
Active Bond Fund	$	5,968,919		—	$	2,990,983	$	1,874,052
All Cap Core Fund		3,896,888		—		161,190,786		123,181,991
All Cap Growth Fund		408,146		—		1,084,487		27,918,811
All Cap Value Fund		581,703		—		4,959,533		8,834,913
Alpha Opportunities Fund		39,360,085		—		—		409,808
Alternative Asset Allocation Fund		14,580		—		—		—
American Diversified Growth & Income Portfolio		94,750	$	24,103		—		—
American Fundamental Holdings Portfolio		71,689		12,181		—		—
American Global Diversification Portfolio		61,040		21,502		—		—
Blue Chip Growth Fund		1,544,987		—		201,691,210		252,054,203
Capital Appreciation Fund		2,110,794		—		181,921,985		77,957,283
Core Bond Fund		4,429,938		—		—		2,178,951
Emerging Markets Value Fund		8,533,554		—		4,431,750		13,966,451
Emerging Small Company Fund		—		—		15,385,830		12,170,678
Equity-Income Fund		11,937,438		—		77,245,378		105,724,167
Fundamental Value Fund		8,055,331		—		67,420,909		232,334,601
Global Agribusiness Fund		19,073		—		—		—
Global Bond Fund		41,927,595		—		28,473,982		15,405,894
Global Infrastructure Fund		11,678		—		—		61,348
Global Real Estate Fund		8,399,923		—		59,259,047		216,772,462
Global Timber Fund		—		—		—		197,976
High Income Fund		13,483,050		—		6,152,875		14,617,924
High Yield Fund		24,556,159		—		67,814,068		218,373,867
Index 500 Fund		26,530,273		—		15,771,272		196,512,669
International Equity Index Fund		10,281,486		—		3,637,697		79,105,856
International Opportunities Fund		6,848,550		—		124,967,978		143,016,457
International Small Cap Fund		3,715,265		—		—		79,192,233
International Small Company Fund		4,427,435		—		—		133,566,005
International Value Fund		19,204,270		—		15,012,374		200,764,152
Investment Quality Bond Fund	$	2,125,899		—	$	3,399,479	$	2,383,014
Large Cap Fund		1,345,630		—		40,144,744		87,229,205
Large Cap Value Fund		5,818,716				81,093,911		152,760,266
Mid Cap Index Fund		3,031,479		—		2,614,050		12,999,631
Mid Cap Stock Fund		86,790		—		84,455,365		166,092,934
Mid Cap Value Equity Fund		902,413		—		1,586,750		15,197,973
Mid Value Fund		2,670,265		12,414		—		—
Natural Resources Fund		3,551,816		—		3,213,814		31,854,904
Real Estate Equity Fund		3,112,521		—		9,589,346		42,803,082
Real Estate Securities Fund		1,095,405		—		6,783,480		30,796,126
Real Return Bond Fund		13,824,911		—		10,772,813		33,365,816
Short Term Government Income Fund		228,065		—		—		—
Small Cap Growth Fund		—		—		1,399,542		7,976,509

447

SIGNIFICANT ACCOUNTING POLICIES, CONTINUED

Fund	Undistributed Ordinary Income		Undistributed Long Term Capital Gains		Capital Loss Carryforward		Post-October Deferral
Small Cap Index Fund	$	945,289		—	$	868,942	$	29,229,946
Small Cap Opportunities Fund		124,970		—		14,773,879		28,685,097
Small Cap Value Fund		449,627	$	8,475		—		—
Small Company Growth Fund		—		—		14,620,860		24,935,594
Small Company Value Fund		2,679,284		—		7,019,758		45,793,461
Smaller Company Growth Fund		—		—		486,270		5,902,704
Spectrum Income Fund		7,549,073		—		16,131,303		35,140,104
Strategic Bond Fund		10,908,224		—		1,147,627		20,432,973
Strategic Income Fund		5,080,388		—		—		13,085,275
Total Bond Market Fund		11,119,945		—		—		69,613
Total Return Fund		54,218,745		—		—		21,501,222
U.S. Government Securities Fund		3,645,350		—		—		1,997,778
U.S. High Yield Bond Fund		12,323,026		—		14,116,482		24,101,191
U.S. Multi Sector Fund		7,868,932		—		112,261,923		61,643,747
Value Fund		411,804		—		2,323,653		4,195,588
Value & Restructuring Fund		5,014,623		—		54,282,972		72,865,965
Vista Fund		—		—		9,624,048		24,901,273

 

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 Funds’ financial statements as a return of capital. Net capital losses that are attributable to security transactions incurred after October 31, 2008, are treated as arising on September 1, 2009, the first day of the Funds’ next taxable year.

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 foreign currency transactions, net operating losses, paydowns, defaulted bonds, derivative transactions, partnerships, distribution reclassifications, amortization and accretion on debt securities, tender fees and investments in passive foreign investment companies.

3.  FINANCIAL INSTRUMENTS

The Funds have adopted the provisions of Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (FAS 161). This new standard requires the Funds to disclose information to assist investors in understanding how the Funds use derivative instruments, how derivative instruments are accounted for under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities (FAS 133) and how derivative instruments affect the Funds’ financial position, results of operations and Statements of Changes in net assets. The disclosure for the year ended August 31, 2009 is presented in accordance with FAS 161.

Options  Each Fund of the Trust described in this report may purchase and sell put and call options on securities, securities indices, currencies, swaps (“swaptions”) and futures contracts. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price. The Funds may use options to manage against possible changes in the market value of the Funds’ assets, mitigate exposure to fluctuations in currency values or interest rates, or protect the Funds’ unrealized gains. In addition, the Funds may use options to facilitate investment transactions by protecting the Funds against a change in the market price of the investment, enhance potential gains, or as a substitute for the purchase or sale of securities or currency.

Options listed on an exchange, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Using an independent pricing source, options not listed on an exchange are valued at the mean between the last bid and ask prices.

When the Funds purchase options, the premium paid by the Funds are included in the Portfolio of Investments and subsequently “marked-to-market” to reflect current market value. If the purchased option expires, the Funds realize a loss equal to the cost of the option. If the Funds enter into a closing sale transaction, the Funds realize a gain or loss, depending on whether proceeds from the closing sale are greater or less than the original cost. If the Funds exercise 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 Funds exercise 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 paid.

Writing puts and buying calls may increase the Funds’ exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the Funds’ exposure to such changes. Losses may arise when buying and selling options if there is an illiquid secondary market for the options, which may cause a party to receive less than would be received in a liquid market, or if the counterparties do not perform under the terms of the options.

During the year ended August 31, 2009, the Funds used purchased options for the following reasons:

High Income Fund used purchased options to hedge against anticipated currency exchange rates and maintain the diversity and liquidity of the portfolio. Strategic Bond Fund used purchased options to enhance potential gain, manage the duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets and maintain diversity and liquidity of the portfolio. Strategic Income Fund used purchased options to gain exposure to foreign currencies, hedge against anticipated currency exchange rates, enhance potential gain, and maintain the diversity and liquidity of the portfolio.

Notional amounts of purchased options at August 31, 2009 are generally representative of the options activities during the year ended August 31, 2009. Purchased options held by the Funds at August 31, 2009, are detailed in the accompanying Portfolios of Investments.

448

FINANCIAL INSTRUMENTS, CONTINUED

The following summarizes the written options contracts activity during the period ended August 31, 2009:

	NOTIONAL AMOUNT			PREMIUMS RECEIVED
Global Bond Fund
Outstanding, beginning of period		348,164,000		$	6,842,464
Options written		174,307,500			2,421,186
Option closed		(312,956,000	)		(6,455,127	)
Options expired		(152,363,000	)		(2,266,322	)
Outstanding, end of period		57,152,500		$	542,201
High Income Fund
Outstanding, beginning of period		—			—
Options written		196,000,000		$	3,523,100
Option closed		—			—
Options expired		—			—
Outstanding, end of period		196,000,000		$	3,523,100
Real Return Bond Fund
Outstanding, beginning of period		110,477,000		$	3,293,412
Options written		340,769,500			3,298,905
Option closed		(125,511,000	)		(2,145,527	)
Options expired		(135,528,000	)		(2,356,135	)
Outstanding, end of period		190,207,500		$	2,090,655
Spectrum Income Fund
Outstanding, beginning of period		—			—
Options written		5,000		$	9,821
Option closed		—			—
Options expired		(5,000	)		(9,821	)
Outstanding, end of period		—			—
Strategic Bond Fund
Outstanding, beginning of period		1,405,500		$	666,942
Options written		3,111,000			2,129,155
Option closed		(629,500	)		(515,592	)
Options expired		(3,464,500	)		(2,209,608	)
Outstanding, end of period		422,500		$	70,897
Strategic Income Fund
Outstanding, beginning of period		13,225,000		$	49,293
Options written		110,760,000			1,388,890
Option closed		—			—
Options expired		(76,235,000	)		(694,561	)
Outstanding, end of period		47,750,000		$	743,622
Total Return Fund
Outstanding, beginning of period		300,100,000		$	8,499,252
Options written		380,664,000			3,987,105
Option closed		(269,300,000	)		(7,513,142	)
Options expired		(133,964,000	)		(2,400,798	)
Outstanding, end of period		277,500,000		$	2,572,417
U.S. Government Securities Fund
Outstanding, beginning of period		—			—
Options written		641,000		$	156,923
Option closed		—			—
Options expired		(313,500	)		(61,444	)
Outstanding, end of period		327,500		$	95,479

 

The following summarizes the Funds’ use of written option contracts and the contracts held as of August 31, 2009:

Options on Exchange-Traded Futures Contracts

Global Bond Fund

The Fund used written options to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.

449

FINANCIAL INSTRUMENTS, CONTINUED

FUND	NAME OF ISSUER	EXERCISE PRICE		EXPIRATION DATE		NUMBER OF CONTRACTS		NOTIONAL AMOUNT			USD NOTIONAL AMOUNT		PREMIUM		VALUE
Global Bond Fund	CALLS
	Eurodollar Futures	$	98.625		Sep 2009		49		USD	122,500	$	122,500	$	8,096		($127,706	)
							49			122,500	$	122,500	$	8,096		($127,706	)
	PUTS
	Eurodollar Futures	$	98.50		Mar 2010		332		USD	830,000	$	830,000	$	117,345		($64,325	)
	U.K. 90-Day Libor Futures		92.00		Dec 2009		136		GBP	17,000,000		27,675,172		53,893		—
							468			17,830,000	$	28,505,172	$	171,238		($64,325	)
Real Return Bond Fund
The Fund used written options to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.
Real Return Bond Fund	PUTS
	Eurodollar Futures	$	98.625		Sep 2009		65		USD	162,500	$	162,500	$	10,231		($406	)
	Eurodollar Futures		98.50		Sep 2009		138		USD	345,000		345,000		32,980		(863	)
							203			507,500	$	507,500	$	43,211		($1,269	)
Strategic Bond Fund
The Fund used written options contracts to enhance potential gain, manage the duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets and foreign currencies, and maintain diversity and liquidity of the portfolio.
Strategic Bond Fund	CALLS
	Eurodollar Futures	$	99.25		Sep 2009		20		USD	50,000	$	50,000	$	5,410		($20,875	)
	Eurodollar Futures		99.00		Mar 2010		45		USD	112,500		112,500		29,709		(48,938	)
							65			162,500	$	162,500	$	35,119		($69,813	)
	PUTS
	Eurodollar Futures	$	99.00		Sep 2009		40		USD	100,000	$	100,000	$	7,820		($250	)
	Eurodollar Futures		99.125		Sep 2009		19		USD	47,500		47,500		499		(119	)
	Eurodollar Futures		98.75		Mar 2010		27		USD	67,500		67,500		16,740		(7,256	)
	Eurodollar Futures		98.875		Mar 2010		18		USD	45,000		45,000		10,719		(5,737	)
							104			260,000	$	260,000	$	35,778		($13,362	)
U.S. Government Securities
The Fund used written options to enhance potential gain, manage the duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets and foreign currencies, and maintain diversity and liquidity of the portfolio.
U.S. Government Securities Fund	CALLS
	Eurodollar Futures	$	97.625		Sep 2009		114		USD	285,000	$	285,000	$	88,330		($582,113	)
							114			285,000	$	285,000	$	88,330		($582,113	)
	PUTS
	Eurodollar Futures	$	98.00		Sep 2009		17		USD	42,500	$	42,500	$	7,149		($425	)
							17			42,500	$	42,500	$	7,149		($425	)

 

Interest Rate Swaptions

Global Bond Fund

The Fund used written options to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.

FUND	NAME OF ISSUER	COUNTERPARTY	FLOATING RATE INDEX	PAY/ RECEIVE FLOATING RATE	EXERCISE RATE	EXPIRATION DATE	NOTIONAL AMOUNT		USD NOTIONAL AMOUNT		PREMIUM		VALUE
Global Bond Fund	PUTS
	5-Year Interest Rate Swap	BNP Paribas	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	5,000,000	$	5,000,000	$	40,000		($14,905	)
	5-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	2,000,000		2,000,000		19,600		(11,223	)
	5-Year Interest Rate Swap	Morgan Stanley Capital Services, Inc.	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	11,600,000		11,600,000		111,360		(34,579	)
	5-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	6,000,000		6,000,000		57,000		(33,668	)
	5-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	7,600,000		7,600,000		60,230		(22,655	)
	7-Year Interest Rate Swap	Barclays Bank PLC	3 Month USD-LIBOR	Receive	4.00%	Nov 2009	USD	5,000,000		5,000,000		51,702		(30,514	)
	7-Year Interest Rate Swap	BNP Paribas	3 Month USD-LIBOR	Receive	4.00%	Nov 2009	USD	2,000,000		2,000,000		22,975		(12,206	)
								39,200,000	$	39,200,000	$	362,867		($159,750	)

 

450

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Real Return Bond Fund

The Fund used written options to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets, and maintain diversity and liquidity to the portfolio.

FUND	NAME OF ISSUER	COUNTERPARTY	FLOATING RATE INDEX	PAY/ RECEIVE FLOATING RATE	EXERCISE RATE	EXPIRATION DATE	NOTIONAL AMOUNT		USD NOTIONAL AMOUNT		PREMIUM		VALUE
Real Return Bond Fund	PUTS
	5-Year Interest Rate Swap	Barclays Bank PLC	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	1,900,000	$	1,900,000	$	43,700		($10,661	)
	5-Year Interest Rate Swap	Barclays Bank PLC	3 Month USD-LIBOR	Receive	5.00%	Jun 2010	USD	13,000,000		13,000,000		136,500		(71,577	)
	5-Year Interest Rate Swap	BNP Paribas	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	4,200,000		4,200,000		118,440		(23,567	)
	5-Year Interest Rate Swap	BNP Paribas	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	2,000,000		2,000,000		17,500		(5,962	)
	5-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	1,000,000		1,000,000		9,800		(5,611	)
	5-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	23,000,000		23,000,000		203,980		(68,563	)
	5-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	5.50%	Aug 2010	USD	26,000,000		26,000,000		280,136		(142,108	)
	5-Year Interest Rate Swap	Merrill Lynch Capital Services	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	3,000,000		3,000,000		31,200		(16,834	)
	5-Year Interest Rate Swap	Morgan Stanley Capital Services, Inc.	3 Month USD-LIBOR	Receive	5.00%	Nov 2009	USD	17,000,000		17,000,000		25,330		(2,564	)
	5-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	3.42%	Nov 2009	USD	1,300,000		1,300,000		16,580		(7,295	)
	7-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	4.00%	Nov 2009	USD	7,000,000		7,000,000		62,922		(42,720	)
	7-Year Interest Rate Swap	Goldman Sachs Capital Markets, LP	3 Month USD-LIBOR	Receive	4.00%	Nov 2009	USD	17,000,000		17,000,000		132,600		(103,748	)
	7-Year Interest Rate Swap	Goldman Sachs Capital Markets, LP	3 Month USD-LIBOR	Receive	5.37%	Sep 2010	USD	5,000,000		5,000,000		160,750		(54,771	)
	7-Year Interest Rate Swap	JP Morgan Chase Bank	3 Month USD-LIBOR	Receive	4.00%	Nov 2009	USD	34,000,000		34,000,000		389,959		(207,495	)
	7-Year Interest Rate Swap	JP Morgan Chase Bank	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	5,000,000		5,000,000		41,457		(30,322	)
	7-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	12,300,000		12,300,000		96,700		(74,592	)
	7-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	5.37%	Sep 2010	USD	17,000,000		17,000,000		279,890		(186,223	)
								189,700,000	$	189,700,000	$	2,047,444		($1,054,613	)
Total Return Fund
The Fund used written options to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets, and maintain diversity and liquidity to the portfolio.
Total Return Fund	PUTS
	5-Year Interest Rate Swap	Barclays Bank PLC	3 Month USD-LIBOR	Receive	5.00%	Jun 2010	USD	24,000,000	$	24,000,000	$	235,620		($132,142	)
	5-Year Interest Rate Swap	Barclays Bank PLC	3 Month USD-LIBOR	Receive	5.50%	Aug 2010	USD	11,000,000		11,000,000		85,466		(60,123	)
	5-Year Interest Rate Swap	BNP Paribas	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	21,000,000		21,000,000		198,000		(62,601	)
	5-Year Interest Rate Swap	BNP Paribas	3 Month USD-LIBOR	Receive	5.00%	Jun 2010	USD	4,000,000		4,000,000		36,700		(22,024	)
	5-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	5.00%	Jun 2010	USD	11,000,000		11,000,000		145,200		(60,565	)
	5-Year Interest Rate Swap	JP Morgan Chase Bank	3 Month USD-LIBOR	Receive	5.50%	Aug 2010	USD	5,000,000		5,000,000		53,955		(27,328	)
	5-Year Interest Rate Swap	Merrill Lynch Capital Services	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	17,000,000		17,000,000		134,300		(50,677	)
	5-Year Interest Rate Swap	Merrill Lynch Capital Services	3 Month USD-LIBOR	Receive	5.80%	Jun 2010	USD	1,000,000		1,000,000		5,625		(3,082	)
	5-Year Interest Rate Swap	Morgan Stanley Capital Services, Inc.	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	2,000,000		2,000,000		20,900		(5,962	)
	5-Year Interest Rate Swap	Morgan Stanley Capital Services, Inc.	3 Month USD-LIBOR	Receive	5.00%	Jun 2010	USD	15,000,000		15,000,000		160,500		(82,588	)
	5-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	3.75%	Nov 2009	USD	6,000,000		6,000,000		57,624		(17,886	)
	5-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	5.00%	Jun 2010	USD	11,000,000		11,000,000		159,225		(60,565	)
	5-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	5.50%	Aug 2010	USD	10,000,000		10,000,000		77,719		(54,657	)
	7-Year Interest Rate Swap	Barclays Bank PLC	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	4,500,000		4,500,000		31,275		(27,290	)
	7-Year Interest Rate Swap	Citibank N.A.	3 Month USD-LIBOR	Receive	4.00%	Nov 2009	USD	42,000,000		42,000,000		444,241		(256,317	)
	7-Year Interest Rate Swap	Deutsche Bank AG	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	4,000,000		4,000,000		31,355		(24,258	)
	7-Year Interest Rate Swap	JP Morgan Chase Bank	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	15,000,000		15,000,000		123,487		(90,966	)
	7-Year Interest Rate Swap	The Royal Bank of Scotland PLC	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	71,000,000		71,000,000		540,855		(430,572	)
	10-Year Interest Rate Swap	JP Morgan Chase Bank	3 Month USD-LIBOR	Receive	6.00%	Aug 2010	USD	3,000,000		3,000,000		30,370		(30,370	)
								277,500,000	$	277,500,000	$	2,572,417		($1,499,973	)

 

Foreign Currency Options

High Income Fund

The Fund used written options to hedge against anticipated currency exchange rates and maintain diversity and liquidity of the portfolio.

FUND	NAME OF ISSUER		EXERCISE PRICE	EXPIRATION DATE	NOTIONAL AMOUNT		USD NOTIONAL AMOUNT		PREMIUM		VALUE
High Income Fund	CALLS
	U.S. Dollar versus Canadian Dollar	$	1.30	Apr 2010	USD	98,000,000	$	98,000,000	$	1,808,100		($467,754	)
	U.S. Dollar versus Canadian Dollar		1.30	Apr 2010	USD	98,000,000		98,000,000		1,715,000		(467,754	)
						196,000,000	$	196,000,000	$	3,523,100		($935,508	)

 

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Strategic Income Fund

The Fund used written options to enhance potential gain, hedge against anticipated currency exchange rates, gain exposure to foreign currencies and to maintain diversity and liquidity of the portfolio.

FUND	NAME OF ISSUER	EXERCISE PRICE (USD)		EXPIRATION DATE		NOTIONAL AMOUNT			USD NOTIONAL AMOUNT		PREMIUM		VALUE
Strategic Income Fund	CALLS
	Australian Dollar versus Canadian Dollar	$	0.77		Sep 2009		AUD	11,700,000	$	9,888,839	$	54,795		($90,483	)
	Australian Dollar versus Canadian Dollar		0.77		Sep 2009		AUD	5,600,000		4,733,120		36,017		(44,255	)
	Euro versus Canadian Dollar		2.25		Sep 2009		EUR	9,300,000		13,332,473		110,475		(120,392	)
	U.S. Dollar versus Canadian Dollar		1.30		Feb 2010		USD	10,700,000		10,700,000		267,500		(35,866	)
	U.S. Dollar versus Canadian Dollar		1.30		Apr 2010		USD	10,450,000		10,450,000		274,835		(49,878	)
								47,750,000	$	49,104,432	$	743,622		($340,874	)

 

Futures  All Funds of the Trust, except for the American Funds, described in this report may purchase and sell financial futures contracts, including index futures and options on these contracts. A future is a contractual agreement to buy or sell a particular commodity, currency, or financial instrument at a pre-determined price in the future. The Funds use futures contracts to manage against a decline in the value of securities owned by the Funds due to anticipated interest rate, currency or market changes. In addition, the Funds will use futures contracts for duration management or to gain exposure to a securities market.

An index futures contract (index future) is a contract to buy a certain number of units of the relevant index at a fixed price and specific future date. The Funds may invest in index futures as a means of gaining exposure to securities without investing in them directly, thereby allowing the Funds to invest in the underlying securities over time. Investing in index futures also permits the Funds to maintain exposure to common stocks without incurring the brokerage costs associated with investment in individual common stocks.

When the Funds sell a futures contract based on a financial instrument, the Funds become obligated to deliver such instrument at an agreed upon date for a specified price. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Funds and the prices of futures contracts, the possibility of an illiquid market and the inability of the counterparty to meet the terms of the contract.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. Upon entering into a futures contract, initial margin deposits, as set by the exchange or broker to the contract, are required and are met by the delivery of specific securities (or cash) as collateral to the broker. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (variation margin) is recorded by the Fund. Gains or losses are recognized but not considered realized until the contracts expire or are closed. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed on the Statements of Assets and Liabilities.

Notional amounts of futures contracts at August 31, 2009 are generally representative of the futures contracts activities during the period ended August 31, 2009.

The following summarizes the Funds’ use of futures contracts and the contracts held as of August 31, 2009:

Active Bond Fund

The Fund used futures to manage duration of the portfolio.

FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS	POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
Active Bond Fund	U.S. Treasury 10-Year Note Futures	80	Short	Dec 2009	$	9,377,500		($47,069	)
					$	9,377,500		($47,069	)
All Cap Core Fund
The Fund used futures to gain exposure to certain securities markets.
All Cap Core Fund	Russell 2000 Mini Index Futures	514	Long	Sep 2009	$	29,385,380	$	2,591,457
	S&P 500 E Mini Index Futures	272	Long	Sep 2009		13,867,920		1,237,635
					$	43,253,300	$	3,829,092
Global Bond Fund
The Fund used futures to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes and foreign exchange rates, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.
Global Bond Fund	3-Month EURIBOR Futures	135	Long	Dec 2010	$	47,372,750	$	24,755
	3-Month EURIBOR Futures	3	Long	Mar 2011		1,049,879		215
	3-Month Sterling Futures	229	Long	Sep 2010		45,635,483		130,121
	3-Month Sterling Futures	24	Long	Mar 2011		4,736,850		3,686
	10-Year German Euro-BUND Futures	13	Long	Sep 2009		2,285,430		(745	)
	10-Year Japan Government Bond Futures	22	Long	Sep 2009		32,894,787		758,087
	Eurodollar Futures	248	Long	Jun 2010		61,321,100		226,287
	U.S. Treasury 10-Year Note Futures	252	Long	Dec 2009		29,539,125		159,719
					$	224,835,404	$	1,302,125

 

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Index 500 Fund

The Fund used futures to gain exposure to certain securities markets.

FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS	POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
Index 500 Fund	S&P 500 Index Futures	134	Long	Sep 2009	$	34,159,950	$	2,373,237
					$	34,159,950	$	2,373,237
International Equity Index Fund
The Fund used futures contracts to gain exposure to certain securities markets.
International Equity Index Fund	ASX SPI 200 Index Futures	15	Long	Sep 2009	$	1,417,083	$	233,592
	CAC 40 Index Futures	36	Long	Sep 2009		1,886,846		317,736
	DAX Index Futures	6	Long	Sep 2009		1,176,053		188,713
	FTSE 100 Index Futures	28	Long	Sep 2009		2,241,982		349,752
	FTSE JSE Top 40 Index Futures	22	Long	Sep 2009		633,629		77,207
	Hang Seng Index Futures	2	Long	Sep 2009		253,185		(7,999	)
	IBEX 35 Index Futures	5	Long	Sep 2009		814,643		51,695
	MSCI Taiwan Index Futures	64	Long	Sep 2009		1,589,760		13,962
	OMX 30 Index Futures	42	Long	Sep 2009		533,965		21,064
	S&P TSE 60 Index Futures	15	Long	Sep 2009		1,786,161		160,351
	Topix Index Futures	39	Long	Sep 2009		4,032,026		228,426
					$	16,365,333	$	1,634,499
Investment Quality Bond Fund
The Fund used futures contracts to enhance potential gain, manage the duration of the portfolio, hedge against anticipated interest rate changes, gain exposure to certain securities markets, and to maintain the diversity and liquidity of the portfolio.
Investment Quality Bond Fund	Australian Treasury 10-Year Bond Futures	89	Long	Sep 2009	$	7,873,440	$	6,800
	U.S. Treasury 30-Year Bond Futures	11	Long	Dec 2009		1,317,250		8,061
	U.K. Gilt Bond Futures	37	Short	Dec 2009		7,136,548		(24,128	)
	U.S. Treasury 10-Year Note Futures	29	Short	Dec 2009		3,399,344		(21,548	)
					$	19,726,582		($30,815	)
Mid Cap Index Fund
The Fund used futures contracts to gain exposure to certain securities markets.
Mid Cap Index Fund	S&P Mid 400 Emini Index Futures	204	Long	Sep 2009	$	13,341,600	$	1,669,812
					$	13,341,600	$	1,669,812
Real Return Bond Fund
The Fund used futures to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes and foreign exchange rates, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.
Real Return Bond Fund
	3-Month EURIBOR Futures	32	Long	Jun 2010	$	11,307,084	$	38,420
	3-Month EURIBOR Futures	93	Long	Sep 2010		32,744,554		51,663
	3-Month EURIBOR Futures	62	Long	Dec 2010		21,756,374		13,333
	3-Month Sterling Futures	40	Long	Jun 2010		8,011,962		25,233
	Eurodollar Futures	512	Long	Dec 2009		127,411,200		444,788
	Eurodollar Futures	579	Long	Mar 2010		143,715,038		509,600
	Eurodollar Futures	318	Long	Jun 2010		78,629,475		210,188
					$	423,575,687	$	1,293,225
Small Cap Index Fund
The Fund used futures contracts to gain exposure to certain securities markets.
Small Cap Index Fund	Russell 2000 Mini Index Futures	33	Long	Sep 2009	$	1,886,610	$	200,160
					$	1,886,610	$	200,160
Smaller Company Growth Fund
The Fund used futures contracts to gain exposure to certain securities markets.
Smaller Company Growth Fund	Russell 2000 Mini Index Futures	12	Long	Sep 2009	$	686,040	$	4,181
					$	686,040	$	4,181

 

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Spectrum Income Fund

The Fund used futures to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate and currency exchange rate changes, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.

FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS	POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
Spectrum Income Fund	2-Year German Euro-SCHATZ Futures	43	Long	Sep 2009	$	6,675,204	$	21,268
	5-Year German Euro-BOBL Futures	4	Long	Sep 2009		666,853		8,659
	10-Year German Euro-BUND Futures	10	Long	Sep 2009		1,758,023		33,718
	U.S. Treasury 30-Year Bond Futures	1	Long	Dec 2009		119,750		872
	10-Year Canada Government Bond Futures	22	Short	Dec 2009		2,421,557		(9,445	)
	Euro Currency Futures	22	Short	Sep 2009		3,940,750		(89,474	)
	U.K. Long Gilt Bond Futures	9	Short	Dec 2009		1,735,917		(3,370	)
	U.S. Treasury 2-Year Note Futures	12	Short	Dec 2009		2,596,125		(6,048	)
	U.S. Treasury 5-Year Note Futures	3	Short	Dec 2009		345,750		(2,035	)
	U.S. Treasury 10-Year Note Futures	14	Short	Dec 2009		1,641,063		(9,347	)
	U.S. Treasury 30-Year Bond Futures	4	Short	Dec 2009		479,000		(5,266	)
					$	22,379,992		($60,468	)
Strategic Bond Fund
The Fund used futures to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate and currency exchange rates, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.
Strategic Bond Fund	Eurodollar Futures	71	Long	Sep 2009	$	17,690,981	$	153,049
	Eurodollar Futures	8	Long	Dec 2009		1,990,800		18,064
	Eurodollar Futures	103	Long	Mar 2010		25,565,888		154,674
	Eurodollar Futures	41	Long	Jun 2010		10,137,762		34,428
	Eurodollar Futures	75	Long	Sep 2010		18,466,875		40,362
	U.S. Treasury 2-Year Note Futures	42	Long	Dec 2009		9,086,437		22,317
	U.S. Treasury 5-Year Note Futures	584	Long	Dec 2009		67,306,000		485,491
	U.S. Treasury 10-Year Note Futures	84	Long	Dec 2009		9,846,375		105,618
	U.S. Treasury 30-Year Bond Futures	176	Long	Dec 2009		21,076,000		187,639
					$	181,167,118	$	1,201,642
Strategic Income Fund
The Fund used futures to manage duration of the portfolio.
Strategic Income Fund	U.S. Treasury 10-Year Note Futures	564	Short	Dec 2009	$	66,111,375		($327,512	)
					$	66,111,375		($327,512	)
Total Return Fund
The Fund used futures to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes and foreign exchange rates, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.
Total Return Fund	3-Month EURIBOR Futures	41	Long	Dec 2009	$	14,571,694	$	89,421
	3-Month EURIBOR Futures	68	Long	Mar 2010		24,111,634		155,747
	3-Month Sterling Futures	37	Long	Dec 2009		7,474,311		307,561
	3-Month Sterling Futures	38	Long	Dec 2010		7,534,036		12,242
	3-Month Sterling Futures	38	Long	Sep 2010		7,572,700		24,970
	3-Month Sterling Futures	18	Long	Mar 2010		3,622,965		32,682
	3-Month Sterling Futures	20	Long	Mar 2011		3,947,375		(4,617	)
	3-Month Sterling Futures	38	Long	Jun 2010		7,611,364		40,143
	Eurodollar Futures	1,428	Long	Dec 2009		355,357,800		4,712,512
	Eurodollar Futures	375	Long	Mar 2010		93,079,688		2,763,775
	Eurodollar Futures	40	Long	Sep 2010		9,849,000		150,200
	Eurodollar Futures	336	Long	Dec 2010		82,387,200		78,625
	Eurodollar Futures	292	Long	Jun 2010		72,200,650		512,044
	Eurodollar Futures	689	Long	Sep 2009		171,677,269		4,705,369
	U.S. Treasury 5-Year Note Futures	485	Long	Dec 2009		55,896,250		428,141
	U.S. Treasury 10-Year Note Futures	34	Long	Dec 2009		3,985,438		32,094
	U.S. Treasury 30-Year Note Futures	118	Long	Dec 2009		14,130,500		83,328
					$	935,009,874	$	14,124,237

 

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U.S. Government Securities Fund

The Fund used futures to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate or currency exchange rates, gain exposure to certain securities markets, and maintain diversity and liquidity of the portfolio.

FUND	OPEN CONTRACTS	NUMBER OF CONTRACTS	POSITION	EXPIRATION DATE	NOTIONAL VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
U.S. Government Securities Fund	Eurodollar Futures	114	Long	Sep 2009	$	28,405,238	$	449,537
	Eurodollar Futures	51	Long	Jun 2010		12,610,388		108,983
	Eurodollar Futures	57	Long	Sep 2010		14,034,825		91,656
	Eurodollar Futures	60	Long	Mar 2011		14,657,250		(7,120	)
	U.S. Treasury 10-Year Note Futures	48	Long	Dec 2009		5,626,500		56,235
	U.S. Treasury 2-Year Note Futures	27	Long	Dec 2009		5,841,281		14,303
	U.S. Treasury 5-Year Note Futures	243	Long	Dec 2009		28,005,750		202,038
					$	109,181,232	$	915,632
U.S. Multi Sector Fund
The Fund used futures contracts to hedge against anticipated changes in securities markets, gain exposure to certain securities markets, and maintain the diversity and liquidity of the portfolio.
Interest Rate Swap Agreements
U.S. Multi Sector Fund	S&P Mid 400 Emini Index Futures	465	Long	Sep 2009	$	23,708,025	$	1,573,248
					$	23,708,025	$	1,573,248

 

Swap Contracts  All Funds of the Trust, except for the American Funds, described in this report may enter interest rate, credit default, cross-currency, and other forms of swap transactions to manage their exposure to credit, currency and interest rate risks to gain exposure in lieu of buying in the physical market, or to enhance income. Swap agreements are privately negotiated agreements between the Funds and a counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. In connection with these agreements, the Funds will hold cash and/or liquid securities equal to the net amount of the Funds’ exposure, in order to satisfy the Funds’ obligations in the event of default or bankruptcy/insolvency.

Swaps are marked to market daily based upon values from third party vendors or quotations from market makers to the extent available, and the change in value, if any, is recorded as unrealized appreciation/depreciation of swap contracts on the Funds’ Statements of Assets and Liabilities. If market quotations are not readily available or deemed reliable, certain swap agreements may be fair valued in good faith by the Trust’s Pricing Committee in accordance with procedures adopted by the Board of Trustees.

Upfront payments made/received by the Funds represent payments to compensate for differences between the stated terms of the swap and prevailing market conditions, including credit spreads, currency exchange rates, interest rates and other relevant factors. These payments are amortized or accreted for financial reporting purposes, with the un-amortized/un-accreted portion included in the Statements of Assets and Liabilities. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statements of Operations. Net periodic payments received or paid by the Funds are included as part of realized gains or losses on the Statements of Operations.

Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that a counterparty may default on its obligation under the swap or disagree as to the meaning of the swap terms in the agreements and that there may be unfavorable interest rate changes. The Funds may also suffer losses if they is unable to terminate outstanding swap contracts or reduce its exposure through offsetting transactions.

Certain Funds are parties to International Swap Dealers Association, Inc. Master Agreements (ISDA Master Agreements) with select counterparties that govern over-the-counter derivative transactions, which may include foreign exchange derivative transactions, entered into by the Funds and those counterparties. The ISDA Master Agreements typically include standard representations and warranties as well as a Credit Support Annex (CSA) that accompanies a schedule to ISDA master agreements provisions listing types of collateral agreed to by the Funds and counterparty and outlining the general obligations of the Funds and counterparties relating to collateral, events of default, termination events and other standard provisions. Termination events may include a decline in the Funds’ net asset value below a certain point over a certain period of time that is specified in the Schedule to the ISDA Master Agreement; such an event may entitle counterparties to elect to terminate early and calculate damages based on that termination with respect to some or all outstanding transactions under the applicable damage calculation provisions of the ISDA Master Agreement. An election by one or more counterparties to terminate ISDA Master Agreements could have a material impact on the financial statements of the Funds.

Interest Rate Swap Agreements  Interest rate swaps represent an agreement between two counterparties to exchange cash flows based on the difference in the two interest rates, applied to the notional principal amount for a specified period. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The Funds settle accrued net receivable or payable amounts under the swap contracts on a periodic basis.

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.

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The following summarizes Funds’ use of the interest rate swap contracts, and the contracts held as of August 31, 2009:

Global Bond Fund

The Fund used interest rate swaps to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes and gain exposure to certain securities markets.

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	PAYMENTS MADE BY FUND	PAYMENTS RECEIVED BY FUND	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond Fund
	Bank of America N.A.	1,150,000,000	JPY	$11,682,243	6 Month LIBOR	Fixed 1.000%	Dec 2014		($24,888	)	$	96,203		$	71,315
	Barclays Bank PLC	31,300,000	EUR	41,475,631	6 Month EURIBOR	Fixed 2.500%	Sep 2011		68,266			7,998			76,264
	Barclays Bank PLC	30,000,000	SEK	4,440,300	3 Month STIBOR	Fixed 4.500%	Mar 2014		(29,005	)		387,004			357,999
	Citibank N.A	7,100,000	GBP	11,680,917	6 Month LIBOR	Fixed 3.500%	Mar 2015		(377,592	)		248,422			(129,170	)
	Credit Suisse International	100,000	GBP	165,350	6 Month LIBOR	Fixed 3.500%	Mar 2015		(3,175	)		1,356			(1,819	)
	Deutsche Bank AG	4,000,000,000	JPY	41,627,641	6 Month LIBOR	Fixed 1.000%	Jun 2011		152,924			40,821			193,745
	Deutsche Bank AG	1,800,000	EUR	2,320,829	6 Month EURIBOR	Fixed 3.00%	Sep 2011		5,106			11,728			16,834
	Deutsche Bank AG	49,600,000	AUD	31,877,918	3 Month BBR-BBSW	Fixed 4.500%	Jun 2012		20,171			(645,324	)		(625,153	)
	Deutsche Bank AG	14,300,000	AUD	11,694,401	3 Month BBR-BBSW	Fixed 6.500%	Jun 2012		15,162			18,792			33,954
	Deutsche Bank AG	4,600,000	EUR	6,045,552	6 Month EURIBOR	Fixed 3.000%	Sep 2012		25,698			12,610			38,308
	Goldman Sachs	14,400,000	GBP	23,767,316	6 Month LIBOR	Fixed 4.500%	Mar 2020		156,312			508,051			664,363
	JP Morgan Chase Bank	28,900,000	EUR	38,295,391	6 Month EURIBOR	Fixed 3.000%	Sep 2012		193,411			47,266			240,677
	The Royal Bank of Scotland PLC	33,400,000	AUD	26,783,466	3 Month BBR-BBSW	Fixed 6.500%	Jun 2012		23,876			55,429			79,305
	The Royal Bank of Scotland PLC	1,600,000,000	JPY	16,217,320	6 Month LIBOR	Fixed 1.000%	Dec 2014		(15,106	)		114,327			99,221
	The Royal Bank of Scotland PLC	3,300,000	GBP	5,470,741	6 Month LIBOR	Fixed 4.500%	Mar 2020		5,640			146,610			152,250
	UBS AG	2,670,000,000	JPY	27,578,216	6 Month LIBOR	Fixed 1.000%	Dec 2014		500			165,074			165,574
				$301,123,232				$	217,300		$	1,216,367		$	1,433,667
Investment Quality Bond Fund
The Fund used interest rate swaps in order to enhance potential gain, manage duration of the portfolio, gain exposure to certain securities markets, hedge against anticipated interest rate changes, and maintain the diversity and liquidity of the portfolio.
Investment Quality Bond Fund
	JP Morgan Chase Bank	2,480,000	USD	$2,480,000	Fixed 4.3175%	3 Month LIBOR	Dec 2028		—			($126,130	)		($126,130	)
	JP Morgan Chase Bank	925,000	USD	925,000	Fixed 3.425%	3 Month LIBOR	Jun 2039		—			101,311			101,311
				$3,405,000					—			($24,819	)		($24,819	)
Real Return Bond Fund
The Fund used interest rate swaps to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes and gain exposure to certain securities markets.
Real Return Bond Fund
	Barclays Bank PLC	15,101,989	BRL	$11,120,393	CDI	Fixed 10.680%	Jan 2012		($108,372	)		($101,711	)		($210,083	)
	Barclays Bank PLC	5,500,000	EUR	6,645,650	FRCPXTOB	Fixed 2.138%	Jan 2016		—			123,092			123,092
	BNP Paribas	2,200,000	EUR	2,614,040	FRCPXTOB	Fixed 2.040%	Feb 2011		—			113,144			113,144
	BNP Paribas	3,600,000	EUR	4,757,399	FRCPXTOB	Fixed 1.988%	Dec 2011		—			135,993			135,993
	Credit Suisse International	5,600,000	GBP	10,819,479	6 Month LIBOR	Fixed 5.000%	Sep 2010		(56,334	)		543,552			487,218
	Deutsche Bank AG	7,500,000	GBP	15,049,513	6 Month LIBOR	Fixed 6.000%	Mar 2010		41,397			526,448			567,845
	Goldman Sachs	2,600,000	EUR	3,799,248	6 Month EURIBOR	Fixed 4.500%	Mar 2011		(3,634	)		218,978			215,344
	JP Morgan Chase Bank	2,700,000	EUR	3,428,053	FRCPXTOB	Fixed 2.028%	Oct 2011		—			137,015			137,015
	JP Morgan Chase Bank	1,500,000	EUR	1,912,124	FRCPXTOB	Fixed 2.353%	Oct 2016		—			(32,791	)		(32,791	)
	Morgan Stanley Capital Services, Inc.	6,276,336	BRL	4,763,208	CDI	Fixed 10.115%	Jan 2012		(96,009	)		(88,956	)		(184,965	)
	The Royal Bank of Scotland PLC	6,600,000	GBP	12,746,259	6 Month LIBOR	Fixed 5.000%	Sep 2010		(67,568	)		641,789			574,221
	The Royal Bank of Scotland PLC	1,100,000	GBP	2,231,459	UKRPI	Fixed 3.440%	Sep 2027		—			(1,034	)		(1,034	)
	UBS AG	2,300,000	EUR	2,908,693	FRCPXTOB	Fixed 2.095%	Oct 2011		—			127,692			127,692
	UBS AG	1,600,000	EUR	2,029,041	FRCPXTOB	Fixed 2.350%	Oct 2016		—			(33,951	)		(33,951	)
	UBS AG	1,600,000	EUR	2,029,041	Fixed 2.275%	FRCPXTOB	Oct 2016		—			18,758			18,758
				$86,853,600					($290,520	)	$	2,328,018		$	2,037,498
Spectrum Income Fund
The Fund used interest rate swaps in order to enhance potential gain, gain exposure to certain securities markets, hedge against anticipated interest rate changes, and maintain the diversity and liquidity of the portfolio.
Spectrum Income Fund
	JP Morgan Chase Bank	1,200,000	USD	$1,200,000	Fixed 3.988%	3 Month LIBOR	Aug 2019		—			($40,686	)		($40,686	)
				$1,200,000					—			($40,686	)		($40,686	)

 

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Total Return Fund

The Fund used interest rate swaps to enhance potential gain, manage duration of the portfolio, hedge against anticipated interest rate changes and gain exposure to certain securities markets.

FUND	COUNTERPARTY	NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	PAYMENTS MADE BY FUND	PAYMENTS RECEVIED BY FUND	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Total Return Fund
	Bank of America N.A.	7,600,000	USD	$7,600,000	3 Month LIBOR	Fixed 3.000%	Dec 2011	$	176,548		$	18,495		$	195,043
	Bank of America N.A.	3,000,000	USD	3,000,000	3 Month LIBOR	Fixed 4.000%	Dec 2019		(65,580	)		128,541			62,961
	Barclays Bank PLC	6,254,309	BRL	3,248,431	CDI	Fixed 11.360%	Jan 2010		—			6,821			6,821
	Barclays Bank PLC	104,100,000	USD	104,100,000	3 Month LIBOR	Fixed 3.000%	Feb 2011		(735,909	)		3,973,185			3,237,276
	Barclays Bank PLC	26,000,000	USD	26,000,000	3 Month LIBOR	Fixed 3.450%	Aug 2011		—			1,129,153			1,129,153
	Barclays Bank PLC	639,678	BRL	383,992	CDI	Fixed 10.600%	Jan 2012		—			(2,579	)		(2,579	)
	BNP Paribas	3,500,000	EUR	5,117,176	6 Month EURIBOR	Fixed 4.5%	Mar 2014		(48,544	)		507,707			459,163
	Credit Suisse International	13,600,000	USD	13,600,000	3 Month LIBOR	Fixed 4.000%	Jun 2011		462,377			312,117			774,494
	Deutsche Bank AG	2,500,000	AUD	1,774,875	3 Month BBR-BBSW	Fixed 4.500%	Jun 2011		6,798			(24,746	)		(17,948	)
	Deutsche Bank AG	4,200,000	USD	4,200,000	3 Month LIBOR	Fixed 4.000%	Jun 2011		118,869			120,313			239,182
	Deutsche Bank AG	3,600,000	AUD	2,543,400	6 Month BBR-BBSW	Fixed 5.000%	Jun 2013		13,615			(99,460	)		(85,845	)
	Deutsche Bank AG	1,400,000	GBP	2,480,031	6 Month LIBOR	Fixed 5.000%	Mar 2014		653			204,531			205,184
	Goldman Sachs	211,698	BRL	157,522	CDI	Fixed 10.835%	Jan 2012		275			(348	)		(73	)
	Goldman Sachs	1,000,000	GBP	1,847,049	6 Month LIBOR	Fixed 5.250%	Mar 2014		(181	)		165,977			165,796
	HSBC Bank USA, N.A.	313,532	BRL	318,167	CDI	Fixed 14.765%	Jan 2012		2,650			18,226			20,876
	HSBC Bank USA, N.A.	994,749	BRL	597,321	CDI	Fixed 10.610%	Jan 2012		—			(3,863	)		(3,863	)
	HSBC Bank USA, N.A.	3,500,000	GBP	6,942,957	6 Month LIBOR	Fixed 5.000%	Sep 2013		30,649			471,068			501,717
	JP Morgan Chase Bank, N.A.	426,452	BRL	255,995	CDI	Fixed 10.600%	Jan 2012		—			(1,719	)		(1,719	)
	Merrill Lynch Capital Services, Inc.	2,164,156	BRL	1,074,014	CDI	Fixed 12.948%	Jan 2010		(77	)		47,795			47,718
	Merrill Lynch Capital Services, Inc.	5,778,682	BRL	2,993,571	CDI	Fixed 11.430%	Jan 2010		—			11,797			11,797
	Merrill Lynch Capital Services, Inc.	11,100,000	USD	11,100,000	3 Month LIBOR	Fixed 4.000%	Jun 2011		224,763			407,361			632,124
	Merrill Lynch Capital Services, Inc.	23,800,000	USD	23,800,000	3 Month LIBOR	Fixed 3.450%	Aug 2011		—			1,033,609			1,033,609
	Merrill Lynch Capital Services, Inc.	5,247,581	BRL	3,936,605	CDI	Fixed 11.980%	Jan 2012		—			86,540			86,540
	Merrill Lynch Capital Services, Inc.	1,003,304	BRL	1,012,701	CDI	Fixed 14.765%	Jan 2012		5,353			61,452			66,805
	Morgan Stanley Capital Services, Inc.	5,273,173	BRL	2,616,128	CDI	Fixed 12.780%	Jan 2010		(374	)		103,992			103,618
	Morgan Stanley Capital Services, Inc.	3,962,433	BRL	2,469,501	CDI	Fixed 12.670%	Jan 2010		(1,824	)		60,325			58,501
	Morgan Stanley Capital Services, Inc.	6,800,000	USD	6,800,000	3 Month LIBOR	Fixed 4.000%	Dec 2019		(117,908	)		260,619			142,711
	The Royal Bank of Scotland PLC	199,000,000	USD	199,000,000	3 Month LIBOR	Fixed 3.150%	Dec 2010		—			6,976,895			6,976,895
	The Royal Bank of Scotland PLC	101,000,000	USD	101,000,000	3 Month LIBOR	Fixed 3.000%	Feb 2011		(214,681	)		3,355,554			3,140,873
	The Royal Bank of Scotland PLC	2,700,000	USD	2,700,000	3 Month LIBOR	Fixed 4.000%	Jun 2011		55,496			98,264			153,760
	The Royal Bank of Scotland PLC	20,700,000	USD	20,700,000	3 Month LIBOR	Fixed 3.600%	Jul 2011		—			993,168			993,168
	The Royal Bank of Scotland PLC	198,400,000	USD	198,400,000	3 Month LIBOR	Fixed 3.450%	Aug 2011		3,163,098			5,453,207			8,616,305
	The Royal Bank of Scotland PLC	2,500,000	GBP	4,617,624	6 Month LIBOR	Fixed 5.250%	Mar 2014		(1,815	)		416,306			414,491
	The Royal Bank of Scotland PLC	700,000	USD	700,000	3 Month LIBOR	Fixed 4.000%	Dec 2014		14,963			18,012			32,975
	UBS AG	3,959,544	BRL	2,471,681	CDI	Fixed 12.410%	Jan 2010		(2,303	)		60,245			57,942
	UBS AG	52,100,000	AUD	37,053,526	3 Month BBR-BBSW	Fixed 4.500%	Jun 2011		28,075			(402,114	)		(374,039	)
	UBS AG	6,330,550	BRL	4,551,967	CDI	Fixed 10.575%	Jan 2012		(94,032	)		(20,174	)		(114,206	)
	UBS AG	21,000,000	AUD	17,396,404	6 Month BBR-BBSW	Fixed 6.000%	Sep 2012		—			(9,611	)		(9,611	)
				$828,560,638				$	3,020,954		$	25,936,661		$	28,957,615

 

Interest rate swap notional amounts at August 31, 2009 (in USD) are generally representative of the interest rate swap activity during the period ended August 31, 2009.

Credit Default Swap Agreements  Credit default swaps (CDS) involve the exchange of a fixed rate premium (paid by “the Buyer”) for protection against the loss in value of an underlying debt instrument, referenced entity or index, 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” (the Seller), receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return, the Seller agrees to remedies that are specified within the credit default agreement and are dependent on the referenced obligation, entity or credit index. The Funds may enter into CDS in which the Funds may act as the Buyer or Seller. By acting as the Seller, in circumstances in which the Funds do not hold offsetting cash equivalent positions equaling the notional amount of the swap, the Funds effectively incurs economic leverage because it would be obligated to pay the Buyer such notional amount in the event of a default. The amount of loss in such case would be reduced by any recovery value on the underlying credit.

If the Funds are the Sellers and a credit event occurs, the Funds will either pay to the Buyer the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations, or securities comprising the referenced index, or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or securities comprising the referenced index. If the Funds are the Buyers and a credit event occurs, the Funds will either receive an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations, or securities comprising the referenced index, or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. Recovery values are assumed by market makers, considering either industry standard recovery rates or entity specific factors and considerations, until a credit event occurs. If a credit event has occurred, the recovery value is determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specified valuation method, are used to calculate the settlement value.

CDS on corporate issues, sovereign issues of an emerging country and asset-backed securities, involve the Buyer making a stream of payments to the Seller in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs on corporate issues, or sovereign issues of an emerging country and cash settlement is not elected, a variety of other deliverable obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver

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other obligations may result in a cheapest-to-deliver option (the Buyer’s right to choose the deliverable obligation with the lowest value following a credit event). Deliverable obligations on CDS on asset-backed securities would be limited to the specific referenced obligation as performance for asset-backed securities can vary. Prepayments, principal paydowns and other write down or loss events on the underlying mortgage loans will reduce the outstanding principal balance of the referenced obligation. These reductions may be temporary or permanent. The Funds may use CDS on these types of securities to provide a measure of protection against defaults of the issuers, or to take an active long or short position with respect to the likelihood of default.

CDS agreements on credit indices involve the Buyer making a stream of payments to the seller in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a list of a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the CDS market, based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using CDS with standardized terms, including a fixed spread and standard maturity dates. An index CDS references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every year, and for most indices, each name has an equal weight in the index. The Funds may use CDS on credit indices to hedge a portfolio of CDS, which is less expensive than it would be to buy many CDS to achieve a similar effect. CDS on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, are utilized in determining the market value of CDS agreements on corporate issues or sovereign issues of an emerging country as of period end, and are disclosed in the table below. The implied credit spread generally represents the yield of the instrument above a credit-risk free rate, such as the U.S. Treasury Bond Yield, and may include upfront payments required to be made to enter into the agreement. It also serves as an indicator of the current status of the payment/performance risk and represents the likelihood or risk of default for the credit derivative. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

The maximum potential amount of future payments (undiscounted) that the Funds as the Sellers could be required to make under a CDS agreement, would be an amount equal to the notional amount of the agreement. Notional amounts of all CDS agreements outstanding as of August 31, 2009, for which the Funds are the Sellers, are disclosed in the tables below. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received, or net amounts received from the settlement of buy protection CDS agreements entered into by the Funds for the same referenced entity or entities.

The following summarizes the Funds’ use of credit default swaps, as Buyers of protection, and the contracts held as of August 31, 2009:

Global Bond Fund

The Fund used credit default swaps to enhance potential gain, hedge against potential credit events and gain exposure to security or credit indices.

FUND	COUNTERPARTY	REFERENCE OBLIGATION	NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	(PAY)/ RECEIVE FIXED RATE	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond Fund
	Bank of America N.A.	Rio Tinto Alcan, Inc.	700,000	USD	700,000	(0.290)%	Mar 2011		—			($511	)		($511	)
	Bank of America N.A.	Xstrata Canada Corporation	3,000,000	USD	3,000,000	(0.910)%	Jun 2012		—			56,682			56,682
	Bank of America N.A.	Vivendi	2,000,000	USD	2,000,000	(1.280)%	Jun 2013		—			1,386			1,386
	Bank of America N.A.	The Home Depot, Inc.	1,000,000	USD	1,000,000	(1.100)%	Mar 2016		—			(27,269	)		(27,269	)
	Bank of America N.A.	Lafarge	2,000,000	USD	2,000,000	(1.690)%	Sep 2016		—			97,032			97,032
	Bank of America N.A.	Dow Jones CDX.NA.IG.7	5,443,200	USD	5,443,200	(0.650)%	Dec 2016		($29,305	)		297,622			268,317
	Bank of America N.A.	Intuit INC.	2,000,000	USD	2,000,000	(1.380)%	Mar 2017		—			(116,560	)		(116,560	)
	Bank of America N.A.	McKesson Corporation	600,000	USD	600,000	(0.380)%	Mar 2017		—			(4,305	)		(4,305	)
	Bank of America N.A.	CDX.NA.IG.8	7,027,200	USD	7,027,200	(0.600)%	Jun 2017		84,010			265,215			349,225
	Bank of America N.A.	UBS AG	5,000,000	USD	5,000,000	(2.280)%	Jun 2018		—			(401,540	)		(401,540	)
	Bank of America N.A.	CBS Corp.	1,800,000	USD	1,800,000	(1.000)%	Jun 2019		229,510			(72,598	)		156,912
	Barclays Bank PLC	XL Capital Ltd.	300,000	USD	300,000	(0.310)%	Mar 2012		—			16,571			16,571
	Barclays Bank PLC	Norfolk Southern	2,000,000	USD	2,000,000	(0.450)%	Sep 2014		—			1,171			1,171
	Barclays Bank PLC	Southwest Airlines Co.	500,000	USD	500,000	(0.640)%	Mar 2017		—			40,632			40,632
	Barclays Bank PLC	CDX.NA.IG.8	3,123,200	USD	3,123,200	(0.600)%	Jun 2017		94,791			60,420			155,211
	Barclays Bank PLC	CDX.NA.IG.8	21,569,600	USD	21,569,600	(0.600)%	Jun 2017		229,865			842,061			1,071,926
	Barclays Bank PLC	Citigroup Inc.	4,300,000	USD	4,300,000	(0.870)%	Jun 2018		—			447,807			447,807
	Bear Stearns	CNA Financial Corporation	500,000	USD	500,000	(0.440)%	Sep 2011		—			25,236			25,236
	Bear Stearns	Nisource Finance Corporation	200,000	USD	200,000	(0.620)%	Sep 2014		—			10,228			10,228
	Bear Stearns	Loews Corporation	200,000	USD	200,000	(0.330)%	Mar 2016		—			2,124			2,124
	Bear Stearns	Sprint Nextel Corporation	1,000,000	USD	1,000,000	(1.065)%	Dec 2016		—			134,318			134,318
	BNP Paribas	D.R. Horton, Inc.	800,000	USD	$800,000	(4.030)%	Jun 2011		—			(36,368	)		(36,368	)
	BNP Paribas	Vivendi	800,000	USD	800,000	(1.743)%	Jun 2013		—			(13,452	)		(13,452	)
	BNP Paribas	Vivendi	800,000	USD	800,000	(1.780)%	Jun 2013		—			(14,603	)		(14,603	)
	BNP Paribas	Vivendi	700,000	USD	700,000	(1.820)%	Jun 2013		—			(13,839	)		(13,839	)
	BNP Paribas	Sprint Nextel Corporation	3,000,000	USD	3,000,000	(5.000)%	Sep 2017		(427,509	)		138,223			(289,286	)
	BNP Paribas	JP Morgan Chase & Company	1,800,000	USD	1,800,000	(0.737)%	Mar 2018		—			(8,044	)		(8,044	)
	BNP Paribas	The Bear Stearns Companies, Inc.	2,000,000	USD	2,000,000	(2.180)%	Mar 2018		—			(226,088	)		(226,088	)
	Citibank N.A	Sara Lee Corporation	500,000	USD	500,000	(0.330)%	Sep 2011		—			(1,335	)		(1,335	)
	Citibank N.A	Autozone, Inc.	500,000	USD	500,000	(0.680)%	Dec 2012		—			(1,957	)		(1,957	)
	Citibank N.A	HSBC Finance Corporation	1,700,000	USD	1,700,000	(0.430)%	Mar 2014		—			143,409			143,409

458

FINANCIAL INSTRUMENTS, CONTINUED

FUND	COUNTERPARTY	REFERENCE OBLIGATION		NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	(PAY)/ RECEIVE FIXED RATE	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond Fund, continued
	Citibank N.A	Nabors Industries, INC		2,000,000	USD	2,000,000	(0.820)%	Mar 2018		—		$	69,937		$	69,937
	Citibank N.A	Pearson PLC		1,000,000	USD	1,000,000	(0.690)%	Jun 2018		—			(13,663	)		(13,663	)
	Credit Suisse International	Johnson Controls, Inc.		600,000	USD	600,000	(0.240)%	Mar 2011		—			14,594			14,594
	Credit Suisse International	Sealed Air Corporation		700,000	USD	700,000	(0.500)%	Sep 2013		—			16,653			16,653
	Credit Suisse International	Masco Corporation		700,000	USD	700,000	(0.907)%	Dec 2016		—			62,493			62,493
	Deutsche Bank AG	Nationwide Health Properties, Inc.		600,000	USD	600,000	(0.620)%	Sep 2011		—			21,536			21,536
	Deutsche Bank AG	Bank of America Corporation		700,000	USD	700,000	(1.720)%	Dec 2013		—			(3,481	)		(3,481	)
	Deutsche Bank AG	CDX.NA.IG.12		9,300,000	USD	9,300,000	(1.000)%	Jun 2014	$	346,610			(290,857	)		55,753
	Deutsche Bank AG	Tate & Lyle Public Limited Company		300,000	USD	300,000	(0.510)%	Dec 2014		—			13,232			13,232
	Deutsche Bank AG	CDX.NA.IG.8		9,174,400	USD	9,174,400	(0.600)%	Jun 2017		54,481			401,452			455,933
	Deutsche Bank AG	CDX.NA.IG.9		5,172,800	USD	5,172,800	(0.800)%	Dec 2017		166,046			64,696			230,742
	Deutsche Bank AG	JP Morgan Chase & Company		400,000	USD	400,000	(0.720)%	Mar 2018		—			(1,276	)		(1,276	)
	Deutsche Bank AG	Citigroup, Inc.		1,800,000	USD	1,800,000	(1.336)%	Sep 2018		—			131,993			131,993
	Deutsche Bank AG	Altria Group, Inc.		2,000,000	USD	2,000,000	(1.455)%	Mar 2019		—			(60,841	)		(60,841	)
	Goldman Sachs	CDX.NA.IG.10		12,297,600	USD	12,297,600	(1.500)%	Jun 2018		(363,388	)		325,582			(37,806	)
	Goldman Sachs	CDX.NA.IG.12		8,600,000	USD	8,600,000	(1.000)%	Jun 2019		383,023			(298,541	)		84,482
	JP Morgan Chase Bank	CNA Financial Corporation		500,000	USD	500,000	(0.440)%	Sep 2011		—			25,236			25,236
	JP Morgan Chase Bank	Sabre Holdings Corporation		700,000	USD	700,000	(0.930)%	Sep 2011		—			101,581			101,581
	Merrill Lynch Capital Services, Inc.	Boston Scientific Corporation		700,000	USD	700,000	(0.510)%	Jun 2011		—			5,140			5,140
	Merrill Lynch Capital Services, Inc.	American General Finance Corp.		2,000,000	USD	2,000,000	(1.370)%	Dec 2017		—			739,611			739,611
	Morgan Stanley	CDX.NA.IG.12		7,400,000	USD	7,400,000	(1.000)%	Jun 2014		269,824			(225,461	)		44,363
	Morgan Stanley Capital Services Inc.	Simon Property Group, L.P.		1,000,000	USD	1,000,000	(1.047)%	Jun 2016		—			60,750			60,750
	Morgan Stanley Capital Services Inc.	Motorola, Inc.		700,000	USD	700,000	(0.725)%	Dec 2017		—			54,400			54,400
	The Royal Bank of Scotland PLC	Daimler Chrysler AG	��	300,000	USD	300,000	(0.620)%	Sep 2011		—			1,718			1,718
	The Royal Bank of Scotland PLC	The Bear Stearns Companies, Inc.		2,400,000	USD	2,400,000	(2.223)%	Mar 2018		—			(279,071	)		(279,071	)
	UBS AG	Capital One Financial Corporation		600,000	USD	600,000	(0.350)%	Sep 2011		—			15,513			15,513
	UBS AG	BAE Systems PLC		700,000	USD	700,000	(0.140)%	Dec 2011		—			3,007			3,007
	UBS AG	JP Morgan Chase & Company		1,200,000	USD	1,200,000	(0.730)%	Mar 2018		—			(4,730	)		(4,730	)
	Wachovia Bank N.A.	American Electric Power Company, Inc.		2,000,000	USD	2,000,000	(0.450)%	Jun 2015		—			10,033			10,033
						$152,408,000			$	1,037,958		$	2,602,904		$	3,640,862
Investment Quality Bond Fund
The Fund used credit default swaps to enhance potential gain, hedge against potential credit events and gain exposure to security or credit indices.
Investment Quality Bond Fund
	Goldman Sachs	Macy’s, Inc.		500,000	USD	500,000	(2.700)%	Sep 2013		—		$	7,122		$	7,122
	UBS Securities, LLC	Cytec Industries, Inc.		475,000	USD	475,000	(1.600)%	Dec 2013		—			6,653			6,653
	UBS Securities, LLC	Everest Reinsurance Holdings, Inc.		600,000	USD	600,000	(1.800)%	Dec 2013		—			(24,743	)		(24,743	)
						$1,575,000				—			($10,968	)		($10,968	)
Real Return Bond Fund
The Fund used credit default swaps to enhance potential gain, hedge against potential credit events and gain exposure to security or credit indices.
Real Return Bond Fund
	Bank of America N.A.	YUM! Brands, Inc.	��	2,000,000	USD	2,000,000	(1.245)%	Mar 2018		—			($84,863	)		($84,863	)
	BNP Paribas	International Lease Finance Corp.		600,000	USD	600,000	(1.600)%	Dec 2013		—			156,513			156,513
	Citibank N.A	GATX Corp.		1,000,000	USD	1,000,000	(1.070)%	Mar 2016		—			35,778			35,778
	Citibank N.A	Omnicom Group, Inc.		1,250,000	USD	1,250,000	(0.940)%	Jun 2016		—			(29,449	)		(29,449	)
	Deutsche Bank AG	CDX.NA.IG.12		46,000,000	USD	46,000,000	(1.000)%	Jun 2014	$	1,526,112			(1,250,343	)		275,769
	Deutsche Bank AG	Macy’s, Inc.		1,000,000	USD	1,000,000	(2.100)%	Sep 2017		—			60,205			60,205
	Goldman Sachs	CDX.NA.IG.12		8,900,000	USD	8,900,000	(1.000)%	Jun 2014		170,709			(118,265	)		52,444
	Goldman Sachs	RPM International, Inc.		1,000,000	USD	1,000,000	(1.500)%	Mar 2018		—			6,002			6,002
	JP Morgan Chase Bank	Qwest Capital Funding, Inc.		1,000,000	USD	1,000,000	(3.250)%	Sep 2009		—			(5,871	)		(5,871	)
	Merrill Lynch Capital Services, Inc.	CDX.NA.IG.9		21,960,000	USD	21,960,000	(0.600)%	Dec 2012		1,185,241			(443,907	)		741,334
	Morgan Stanley Capital Services, Inc.	Pearson PLC		2,500,000	USD	2,500,000	(0.750)%	Jun 2014		—			(40,235	)		(40,235	)
	The Royal Bank of Scotland PLC	Macy’s, Inc.		1,000,000	USD	1,000,000	(2.111)%	Dec 2016		—			56,284			56,284
						$88,210,000			$	2,882,062			($1,658,151	)	$	1,223,911
Spectrum Income Fund
The Fund used credit default swaps to enhance potential gain, hedge against potential credit events and gain exposure to security or credit indices.
Spectrum Income Fund
	JP Morgan Chase Bank	Rentokil Initial		50,000	EUR	75,908	(2.500)%	Mar 2013		—			($3,164	)		($3,164	)
	JP Morgan Chase Bank	Electrolux AB		75,000	EUR	118,661	(1.180)%	Jun 2013		—			(2,564	)		(2,564	)
	JP Morgan Chase Bank	British Telecommunications LLC		40,000	EUR	51,938	(1.760)%	Mar 2014		—			(1,784	)		(1,784	)
						$246,507				—			($7,512	)		($7,512	)

 

459

FINANCIAL INSTRUMENTS, CONTINUED

Total Return Fund

The Fund used credit default swaps to enhance potential gain, hedge against potential credit events and gain exposure to security or credit indices.

FUND	COUNTERPARTY	REFERENCE OBLIGATION	NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	(PAY)/ RECEIVE FIXED RATE	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)		UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Total Return Fund
	Deutsche Bank AG	CDX.NA.HY.12	282,000	USD	282,000	(5.000)%	Jun 2014	$	35,441		($4,752	)	$	30,689
	Goldman Sachs	CDX.NA.IG.12	1,800,000	USD	1,800,000	(1.000)%	Jun 2014		19,006		(8,215	)		10,791
					$2,082,000			$	54,447		($12,967	)	$	41,480

 

The following summarizes the Funds’ use of credit default swaps, as Sellers of protection and the contracts held as of August 31, 2009:

Global Bond Fund

The Fund used credit default swaps to enhance potential gain, to take a long position in the exposure of the benchmark credit and gain exposure to security or credit indices.

FUND	COUNTERPARTY	REFERENCE OBLIGATION	IMPLIED CREDIT SPREAD AT 8-31-2009	NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	(PAY)/ RECEIVE FIXED RATE	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Global Bond Fund
	Credit Suisse International	ABX.HE.AA.06-1	n/a	800,000	USD	800,000	0.320 %	Jul 2045		($281,538	)		($333,049	)		($614,587	)
	Deutsche Bank AG	ABX.HE.AAA.06-2	n/a	995,033	USD	995,033	0.110 %	May 2046		(363,541	)		(272,667	)		(636,208	)
	JP Morgan Chase Bank	Federative Republic of Brazil	0.97%	1,700,000	USD	1,700,000	1.345 %	Aug 2011		—			13,291			13,291
	Merrill Lynch International	Federative Republic of Brazil	0.97%	2,000,000	USD	2,000,000	1.340 %	Aug 2011		—			15,437			15,437
	Morgan Stanley Capital Services, Inc.	Federative Republic of Brazil	0.97%	4,100,000	USD	4,100,000	1.380 %	Aug 2011		—			34,910			34,910
						$9,595,033				($645,079	)		($542,078	)		($1,187,157	)
Real Return Bond Fund
The Fund used credit default swaps to enhance potential gain, to take a long position in the exposure of the benchmark credit and gain exposure to security or credit indices.
Real Return Bond Fund
	Barclays Bank PLC	Ford Motor Credit Company LLC	6.42%	500,000	USD	500,000	3.800 %	Sep 2012		—			($31,162	)		($31,162	)
	Barclays Bank PLC	General Electric Captial Corp.	2.70%	300,000	USD	300,000	1.010 %	Mar 2013		—			(15,820	)		(15,820	)
	Citibank N.A	CIT Group	43.01%	2,000,000	USD	2,000,000	5.000 %	Dec 2013		($372,435	)		(506,052	)		(878,487	)
	Citibank N.A	General Electric Capital Corp.	2.67%	4,600,000	USD	4,600,000	3.725 %	Dec 2013		—			220,629			220,629
						$7,400,000				($372,435	)		($332,405	)		($704,840	)
Total Return Fund
The Fund used credit default swaps to enhance potential gain, to take a long position in the exposure of the benchmark credit and gain exposure to security or credit indices.
Total Return Fund
	Bank of America N.A.	SLM Corp.	13.05%	2,600,000	USD	2,600,000	5.000 %	Sep 2011		($323,376	)	$	1,240			($322,136	)
	Barclays Bank PLC	CDX.NA.IG.9	n/a	15,070,411	USD	15,070,411	0.758 %	Dec 2012		—			255,050			255,050
	Barclays Bank PLC	Ford Motor Credit Company LLC	6.42%	2,500,000	USD	2,500,000	4.150 %	Sep 2012		—			(130,778	)		(130,778	)
	Barclays Bank PLC	GAZPROM	3.60%	5,300,000	USD	5,300,000	1.600 %	Dec 2012		—			(304,990	)		(304,990	)
	Barclays Bank PLC	General Electric Capital Corp.	2.42%	3,900,000	USD	3,900,000	0.620 %	Mar 2011		—			(101,939	)		(101,939	)
	Barclays Bank PLC	General Electric Capital Corp.	2.71%	3,900,000	USD	3,900,000	0.640 %	Dec 2012		—			(240,559	)		(240,559	)
	Barclays Bank PLC	GMAC LLC	7.52%	2,500,000	USD	2,500,000	3.650 %	Sep 2012		—			(230,921	)		(230,921	)
	Barclays Bank PLC	GMAC LLC	7.52%	1,300,000	USD	1,300,000	4.800 %	Sep 2012		—			(78,677	)		(78,677	)
	BNP Paribas	General Electric Capital Corp.	2.53%	2,000,000	USD	2,000,000	5.000 %	Sep 2011		90,371			27,096			117,467
	Citibank N.A	CDX.NA.HY.8	n/a	5,777,640	USD	5,777,640	0.355 %	Jun 2012		—			(233,164	)		(233,164	)
	Citibank N.A	CDX.NA.HY.8	n/a	4,814,700	USD	4,814,700	0.360 %	Jun 2012		—			(193,640	)		(193,640	)
	Citibank N.A	CDX.NA.HY.8	n/a	1,348,116	USD	1,348,116	0.401 %	Jun 2012		—			(52,698	)		(52,698	)
	Citibank N.A	General Electric Capital Corp.	2.19%	200,000	USD	200,000	1.100 %	Mar 2010		—			(784	)		(784	)
	Citibank N.A	General Electric Capital Corp.	2.19%	100,000	USD	100,000	1.150 %	Mar 2010		—			(355	)		(355	)
	Citibank N.A	General Electric Capital Corp.	2.48%	1,000,000	USD	1,000,000	5.000 %	Jun 2011		(42,061	)		96,039			53,978
	Citibank N.A	General Electric Capital Corp.	2.48%	1,000,000	USD	1,000,000	5.000 %	Jun 2011		(39,893	)		93,871			53,978
	Citibank N.A	General Electric Capital Corp.	2.67%	600,000	USD	600,000	4.325 %	Dec 2013		—			43,032			43,032
	Deutsche Bank AG	Berkshire Hathaway, Inc.	1.75%	1,600,000	USD	1,600,000	0.850 %	Mar 2013		—			(45,158	)		(45,158	)
	Deutsche Bank AG	CDX.NA.IG.10	n/a	1,944,569	USD	1,944,569	0.530 %	Jun 2013		—			18,344			18,344
	Deutsche Bank AG	CDX.NA.IG.9	n/a	9,917,303	USD	9,917,303	0.708 %	Dec 2012		—			151,158			151,158
	Deutsche Bank AG	Ford Motor Credit Company LLC	6.42%	1,000,000	USD	1,000,000	5.650 %	Sep 2012		—			(9,400	)		(9,400	)
	Deutsche Bank AG	General Electric Capital Corp.	2.19%	800,000	USD	800,000	5.000 %	Dec 2009		3,502			11,342			14,844

460

FINANCIAL INSTRUMENTS, CONTINUED

FUND	COUNTERPARTY	REFERENCE OBLIGATION	IMPLIED CREDIT SPREAD AT 8-31-2009	NOTIONAL AMOUNT	CURRENCY	USD NOTIONAL AMOUNT	(PAY)/ RECEIVE FIXED RATE	MATURITY DATE	UNAMORTIZED UPFRONT PAYMENT PAID (RECEIVED)			UNREALIZED APPRECIATION (DEPRECIATION)			MARKET VALUE
Total Return Fund, continued
	Deutsche Bank AG	General Electric Capital Corp.	2.53%	500,000	USD	500,000	1.500 %	Sep 2011		—			($8,716	)		($8,716	)
	Deutsche Bank AG	General Electric Capital Corp.	2.53%	2,400,000	USD	2,400,000	1.000 %	Sep 2011		($66,089	)		(1,861	)		(67,950	)
	Deutsche Bank AG	United Mexican States	0.64%	1,000,000	USD	1,000,000	2.850 %	Dec 2009		—			12,477			12,477
	Goldman Sachs	CDX.NA.IG.10	n/a	2,430,711	USD	2,430,711	0.463 %	Jun 2013		—			16,700			16,700
	Goldman Sachs	CDX.NA.IG.9	n/a	875,056	USD	875,056	0.548 %	Dec 2017		—			15,266			15,266
	Goldman Sachs	General Electric Capital Corp.	2.19%	500,000	USD	500,000	0.830 %	Dec 2009		—			(1,278	)		(1,278	)
	JP Morgan Chase Bank, N.A.	CDX.NA.IG.9	n/a	1,944,569	USD	1,944,569	0.553 %	Dec 2017		—			34,623			34,623
	JP Morgan Chase Bank, N.A.	General Electric Capital Corp.	2.53%	2,400,000	USD	2,400,000	5.000 %	Sep 2011		108,446			32,514			140,960
	Merrill Lynch Capital Services, Inc.	General Electric Capital Corp.	2.19%	4,300,000	USD	4,300,000	1.080 %	Dec 2009		—			(5,550	)		(5,550	)
	Merrill Lynch Capital Services, Inc.	GMAC LLC	8.13%	3,200,000	USD	3,200,000	1.850 %	Sep 2009		—			(15	)		(15	)
	Morgan Stanley Capital Services, Inc.	CDX.NA.IG.9	n/a	3,900,000	USD	3,900,000	0.963 %	Dec 2012		—			47,871			47,871
	Morgan Stanley Capital Services, Inc.	Federative Republic of Brazil	1.15%	900,000	USD	900,000	1.660 %	Mar 2013		—			22,339			22,339
	Morgan Stanley Capital Services, Inc.	GAZPROM	3.62%	1,000,000	USD	1,000,000	2.180 %	Feb 2013		—			(44,812	)		(44,812	)
	The Royal Bank of Scotland PLC	General Electric Capital Corp.	2.18%	600,000	USD	600,000	1.100 %	Sep 2009		—			923			923
	UBS AG	GAZPROM	3.62%	1,000,000	USD	1,000,000	2.180 %	Feb 2013		—			(44,812	)		(44,812	)
	UBS AG	General Electric Capital Corp.	2.23%	2,500,000	USD	2,500,000	1.000 %	Sep 2010		(22,355	)		(4,825	)		(27,180	)
						$98,623,075				($291,455	)		($855,047	)		($1,146,502	)

 

CDS notional amounts at August 31, 2009 (in USD) are generally representative of the CDS activity during the period ended August 31, 2009.

BA-CDOR	Bankers’ Acceptances-Canadian Deposit Offering Rate
BBR	Bank Bill Rate
BBSW	Bank Bill Swap Rate
CDI	Brazil Interbank Deposit Rate
CMS	Constant Maturity Swap
CPURNSA	Consumer Price All Urban Non-Seasonally Adjusted Index
EURIBOR	Euro Interbank Offered Rate
FRCPXTOB	French CPI Ex Tobacco Daily Reference Index
LIBOR	London Interbank Offered Rate
STIBOR	Stockholm Interbank Offered Rate
UKRPI	United Kingdom Retail Price Index
3M KW-CDC	3 Months Korean Won

 

Currency symbols are defined as follows:

AUD	Australian Dollar
BRL	Brazilian Real
EUR	Euro
GBP	British Pound
JPY	Japanese Yen
SEK	Swedish Krona
USD	U.S. Dollar

 

Forward Foreign Currency Contracts  All Funds of the Trust described in this report may enter into foreign currency contracts to manage foreign currency exposure with respect to transaction hedging, position hedging, cross hedging and proxy hedging. In addition, the Funds may enter into forward foreign currency contracts as a part of an investment strategy, in order to gain exposure to a currency, or to shift exposure to foreign currency fluctuation from one currency to another, without purchasing securities denominated in that currency.

Transaction hedging involves entering into a forward currency transaction which generally arises in connection with the purchase or sale of an investment or receipt of income. Position hedging involves entering into a currency transaction with respect to the Funds’ securities denominated or generally quoted in a specific currency. The Funds utilize currency cross hedging by entering into transactions to purchase or sell one or more currencies that are expected to increase or decline in value relative to other currencies to which the Funds have or expect to have an exposure. The Funds may engage in proxy hedging in order to reduce the effect of currency fluctuations on the value of existing or anticipated holdings of its portfolio securities. Proxy hedging is often used when it is generally difficult to hedge a currency to which the Funds are exposed against the dollar. Proxy hedging entails entering into a forward contract to sell a currency, the changes in the value of which are generally considered to be linked to a currency or currencies in which some of the Funds’ securities are (or are expected to be) denominated, and to buy dollars. The amount of the contract would not exceed the market value of the Funds’ securities denominated in linked currencies.

A foreign currency contract is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of a foreign currency contract fluctuates with changes in foreign currency exchange rates. Foreign currency contracts are marked to market daily and the change in value is recorded by the Funds as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency.

These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. The Funds could be exposed to risk if the value of the currency changes in relation to the U.S. dollar. The investment in a particular transaction may be affected unfavorably by factors that affect the subject currencies, including economic, political and legal developments and exchange control regulations that impact the applicable currencies.

461

FINANCIAL INSTRUMENTS, CONTINUED

Additionally, the Funds could be exposed to counterparty risk if counterparties are unable to meet the terms of the contracts. If a counterparty defaults, the Funds will have contractual remedies, however, there is no assurance that the counterparty will be able to meet its obligations or that the Funds will succeed in pursuing contractual remedies. Thus, the Funds assume the risk that it may be delayed or prevented from obtaining payments owed to it pursuant these transactions.

The following summarizes the Funds’ use of forward foreign currency contracts and contracts held as of August 31, 2009:

Global Bond Fund

The Fund used forward foreign currency exchange contracts to enhance potential gain, hedge against anticipated currency exchange rates, gain exposure to foreign currencies, and maintain diversity and liquidity of the portfolio.

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		PRINCIPAL AMOUNT COVERED BY CONTRACT (USD)		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Global Bond Fund	BUYS
	Brazilian Real		2,528,559	$	1,353,000		10/2/2009		($18,386	)
	Brazilian Real		1,509,600		800,000		10/2/2009		(3,209	)
	Brazilian Real		1,026,551		557,000		10/2/2009		(15,170	)
	Brazilian Real		2,719,111		1,348,765		10/2/2009		86,425
	Canadian Dollar		802,000		740,573		9/17/2009		(7,939	)
	Chilean Peso		112,100,000		194,079		11/19/2009		9,357
	Chinese Yuan Renminbi		1,449,630		210,000		9/8/2009		2,232
	Chinese Yuan Renminbi		1,388,200		200,000		9/8/2009		3,239
	Chinese Yuan Renminbi		6,444,215		930,000		9/8/2009		13,462
	Chinese Yuan Renminbi		2,912,175		420,000		9/8/2009		6,356
	Chinese Yuan Renminbi		1,173,510		170,000		9/8/2009		1,807
	Chinese Yuan Renminbi		4,699,040		688,000		11/30/2009		265
	Chinese Yuan Renminbi		1,847,678		271,000		11/30/2009		(372	)
	Chinese Yuan Renminbi		24,678,416		3,617,000		11/30/2009		(2,368	)
	Chinese Yuan Renminbi		4,691,609		688,000		3/16/2010		695
	Chinese Yuan Renminbi		6,521,690		1,057,000		5/17/2010		(98,430	)
	Chinese Yuan Renminbi		7,353,720		1,188,000		5/17/2010		(107,137	)
	Chinese Yuan Renminbi		14,650,396		2,162,000		6/7/2010		(7,718	)
	Chinese Yuan Renminbi		9,277,713		1,369,000		6/7/2010		(4,750	)
	Danish Krone		20,316,000		3,821,131		10/1/2009		89,619
	Euro		3,474,742		4,982,780		9/1/2009		(1,393	)
	Euro		1,202,000		1,693,577		9/4/2009		29,611
	Euro		41,374,000		58,796,778		9/4/2009		517,040
	Euro		4,028,000		5,730,119		9/4/2009		44,427
	Euro		1,422,000		2,035,738		9/4/2009		2,843
	Euro		349,000		493,503		9/4/2009		6,824
	Hungarian Forint		127,146		618		10/20/2009		46
	Japanese Yen		186,343,000		1,969,783		9/2/2009		32,829
	Japanese Yen		1,261,906,000		13,390,202		9/9/2009		172,069
	Japanese Yen		17,682,754		188,000		9/9/2009		2,044
	Japanese Yen		98,048,818		1,042,672		9/9/2009		11,102
	Japanese Yen		14,461,906,443		150,975,128		9/9/2009		4,453,477
	Japanese Yen		906,438,869		9,580,334		9/9/2009		161,572
	Japanese Yen		93,105,549		992,000		9/9/2009		8,647
	Japanese Yen		186,343,000		1,992,334		10/8/2009		10,797
	Malaysian Ringgit		10,776		3,000		11/12/2009		51
	Malaysian Ringgit		5,393		1,520		11/12/2009		7
	Malaysian Ringgit		14,157		3,947		11/12/2009		62
	Malaysian Ringgit		950		269		2/12/2010		—
	Mexican Peso		329,090		23,817		11/27/2009		557
	Norwegian Krone		3,383,807		561,000		9/4/2009		1,288
	Norwegian Krone		3,622,000		597,493		10/1/2009		3,931
	Philippine Peso		762,295		15,586		11/16/2009		(75	)
	Pound Sterling		17,254,000		29,214,715		9/16/2009		(1,127,090	)
	Pound Sterling		474,000		779,393		9/16/2009		(7,772	)
	Pound Sterling		3,128,000		5,188,355		9/16/2009		(96,313	)
	South Korean Won		1,261,418,545		1,023,268		11/18/2009		(10,455	)
	South Korean Won		9,421,637		7,416		11/18/2009		149
	South Korean Won		7,987,226		6,286		11/18/2009		127
	South Korean Won		281,124,000		228,000		11/18/2009		(2,281	)
	South Korean Won		7,145,027		5,569		11/18/2009		168
	Swedish Krona		14,692,000		1,902,471		10/1/2009		161,742
	Taiwan Dollar		460,489		14,039		11/16/2009		22
	Taiwan Dollar		222,536		6,817		11/16/2009		(22	)
				$	315,231,075			$	4,324,009

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FINANCIAL INSTRUMENTS, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		PRINCIPAL AMOUNT COVERED BY CONTRACT (USD)		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Global Bond Fund, continued	SELLS
	Australian Dollar		23,001,943	$	19,130,716		10/1/2009		($266,496	)
	Canadian Dollar		11,946,000		11,075,396		9/17/2009		162,625
	Chilean Peso		100,207,200		172,741		11/19/2009		(9,112	)
	Chinese Yuan Renminbi		13,367,730		1,893,446		9/8/2009		(63,650	)
	Chinese Yuan Renminbi		13,875,410		1,932,508		5/17/2010		(106,925	)
	Euro		2,337,000		3,353,712		9/4/2009		3,386
	Euro		18,740,000		26,617,420		9/4/2009		(248,268	)
	Euro		7,262,000		10,399,693		9/4/2009		(11,120	)
	Euro		139,000		199,682		9/4/2009		411
	Euro		10,342,000		14,756,264		9/4/2009		(70,040	)
	Euro		145,000		208,635		9/4/2009		762
	Indian Rupee		43,754		894		10/6/2009		—
	Indian Rupee		133,019		2,753		10/6/2009		34
	Indian Rupee		43,790		899		10/6/2009		4
	Indian Rupee		43,990		892		10/6/2009		(8	)
	Indian Rupee		40,313		828		10/6/2009		5
	Japanese Yen		186,343,000		1,991,844		9/2/2009		(10,767	)
	Japanese Yen		234,597,627		2,529,000		9/9/2009		7,674
	Japanese Yen		388,094,000		4,097,449		9/9/2009		(73,571	)
	Japanese Yen		306,676,627		3,264,000		9/9/2009		(31,991	)
	Mexican Peso		329,090		22,079		11/27/2009		(2,294	)
	Singapore Dollar		5,454		3,784		11/18/2009		1
	South African Rand		92,876		9,520		11/18/2009		(2,252	)
	South Korean Won		1,580,339,500		1,262,000		11/18/2009		(6,880	)
				$	102,926,155				($728,472	)
High Income Fund
The Fund used foreign forward currency contracts to hedge against anticipated currency exchange rates and maintain diversity and liquidity of the portfolio.
High Income Fund	BUYS
	Canadian Dollar		2,320,000	$	2,170,760		9/30/2009		($51,312	)
	Pound Sterling		340,000		578,835		9/30/2009		(25,372	)
				$	2,749,595				($76,684	)
	SELLS
	Canadian Dollar		3,200,000	$	2,772,964		9/30/2009		($150,413	)
	Pound Sterling		595,000		972,331		9/30/2009		3,772
				$	3,745,295				($146,641	)
International Equity Index Fund
The Fund use forward foreign currency contracts to gain exposure to foreign currencies.
International Equity Index Fund	BUYS
	Australian Dollar		1,200,000	$	940,356		10/2/2009	$	71,508
	Canadian Dollar		1,500,000		1,300,706		10/2/2009		69,634
	Euro Currency		2,500,000		3,459,875		10/2/2009		124,198
	Hong Kong Dollar		1,000,000		129,138		10/2/2009		(72	)
	Japanese Yen		300,000,000		3,129,074		10/2/2009		95,692
	Pound Sterling		1,200,000		1,960,500		10/2/2009		(7,114	)
	Swedish Krona		4,000,000		499,345		10/2/2009		62,654
				$	11,418,994			$	416,500
Investment Quality Bond Fund
The Fund used forward foreign currency exchange contracts to enhance potential gain, hedge against anticipated currency exchange rates, gain exposure to foreign currencies, and maintain diversity and liquidity of the portfolio.
Investment Quality Bond Fund	BUYS
	Brazilian Real		210,000	$	104,218		9/16/2009	$	6,933
	Indian Rupee		67,200,000		1,400,219		9/29/2009		(26,119	)
	Mexican Peso		20,300,000		1,510,191		9/17/2009		7,055
	New Zealand Dollar		2,150,000		1,342,138		9/16/2009		131,944
	Pound Sterling		830,000		1,352,941		9/16/2009		(1,793	)
				$	5,709,707			$	118,020

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FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		PRINCIPAL AMOUNT COVERED BY CONTRACT (USD)		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Investment Quality Bond Fund, continued	SELLS
	Brazilian Real		1,179,000	$	586,480		9/16/2009		($37,554	)
	Brazilian Real		1,179,000		595,455		9/16/2009		(28,579	)
	Japanese Yen		130,500,000		1,351,764		9/16/2009		(50,849	)
	New Zealand Dollar		2,150,000		1,408,175		9/16/2009		(65,907	)
				$	3,941,874				($182,889	)
Real Return Bond Fund
The Fund used forward foreign currency exchange contracts to enhance potential gain, hedge against anticipated currency exchange rates, gain exposure to foreign currencies, and maintain diversity and liquidity of the portfolio.
Real Return Bond Fund	BUYS
	Brazilian Real		745,498	$	363,569		10/2/2009	$	29,917
	Chinese Yuan Renminbi		13,264,162		1,960,442		9/8/2009		(18,509	)
	Chinese Yuan Renminbi		2,964,635		430,000		9/8/2009		4,036
	Chinese Yuan Renminbi		2,973,831		435,471		9/8/2009		(89	)
	Chinese Yuan Renminbi		10,264,560		1,520,000		9/8/2009		(17,222	)
	Chinese Yuan Renminbi		1,856,775		273,800		3/29/2010		(1,165	)
	Chinese Yuan Renminbi		3,238,505		478,356		3/29/2010		(2,839	)
	Chinese Yuan Renminbi		1,527,578		226,140		3/29/2010		(1,842	)
	Chinese Yuan Renminbi		6,549,653		970,588		3/29/2010		(8,887	)
	Chinese Yuan Renminbi		1,469,600		217,300		3/29/2010		(1,515	)
	Chinese Yuan Renminbi		13,700		2,027		3/29/2010		(15	)
	Chinese Yuan Renminbi		8,892,425		1,311,000		6/7/2010		(3,405	)
	Chinese Yuan Renminbi		3,728,007		548,721		6/7/2010		(532	)
	Chinese Yuan Renminbi		1,601,334		236,359		6/7/2010		(890	)
	Chinese Yuan Renminbi		11,576,874		1,707,000		6/7/2010		(4,667	)
	Malaysian Ringgit		18,319		5,100		11/12/2009		87
	Malaysian Ringgit		9,381		2,644		11/12/2009		13
	Malaysian Ringgit		24,626		6,865		11/12/2009		108
	Malaysian Ringgit		1,652		467		2/12/2010		(1	)
	Mexican Peso		270,151		19,551		11/27/2009		457
	Mexican Peso		108,767		7,427		11/27/2009		629
	Pound Sterling		85,000		141,092		9/16/2009		(2,721	)
	Pound Sterling		119,000		195,265		9/16/2009		(1,546	)
				$	11,059,184				($30,598	)
	SELLS
	Australian Dollar		125,305	$	104,216		10/1/2009		($1,452	)
	Brazilian Real		745,498		392,677		10/2/2009		(808	)
	Chinese Yuan Renminbi		8,956,110		1,311,000		9/8/2009		(215	)
	Chinese Yuan Renminbi		3,728,007		545,669		9/8/2009		(129	)
	Chinese Yuan Renminbi		1,601,334		234,456		9/8/2009		13
	Chinese Yuan Renminbi		11,662,224		1,707,000		9/8/2009		(402	)
	Chinese Yuan Renminbi		3,519,513		503,687		9/8/2009		(11,586	)
	Euro		1,583,000		2,251,053		9/4/2009		(18,338	)
	Japanese Yen		1,938,547,000		20,235,355		9/9/2009		(599,080	)
	Mexican Peso		378,918		25,422		11/27/2009		(2,642	)
	Philippine Peso		6,912,808		141,337		11/16/2009		679
	Pound Sterling		3,551,000		6,013,175		9/16/2009		232,535
	Swiss Franc		915,000		847,089		10/1/2009		(17,236	)
				$	34,312,136				($418,661	)
Spectrum Income Fund
The Fund used forward foreign currency exchange contracts to enhance potential gain, hedge against anticipated currency exchange rates, gain exposure to foreign currencies, and maintain diversity and liquidity of the portfolio.
Spectrum Income Fund	BUYS
	Australian Dollar		370,943	$	302,597		11/19/2009	$	8,930
	Brazilian Real		250,240		133,000		10/2/2009		(920	)
	Canadian Dollar		700,652		639,654		11/19/2009		441
	Chinese Yuan Renminbi		18,552,000		2,743,973		7/21/2010		(13,479	)
	Czech Koruna		3,766,700		207,155		11/19/2009		4,437
	Euro		272,256		389,000		11/19/2009		1,306
	Hungarian Forint		16,425,068		83,081		11/19/2009		2,221

464

FINANCIAL INSTRUMENTS, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		PRINCIPAL AMOUNT COVERED BY CONTRACT (USD)		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Spectrum Income Fund, continued	BUYS
	Indian Rupee		22,536,480	$	464,000		9/22/2009		($2,981	)
	Indian Rupee		22,932,000		468,000		10/20/2009		271
	Indian Rupee		57,570,000		1,184,568		10/21/2009		(9,068	)
	Indian Rupee		23,216,550		477,000		10/27/2009		(3,140	)
	Indian Rupee		23,434,840		482,000		11/19/2009		(4,446	)
	Indonesian Rupiah		2,410,200,000		234,000		10/21/2009		2,950
	Indonesian Rupiah		2,357,960,000		233,000		11/19/2009		(2,610	)
	Japanese Yen		8,813,238		93,096		11/19/2009		1,671
	Malaysian Ringgit		928,377		261,000		10/14/2009		2,165
	Norwegian Krone		3,147,270		498,274		10/22/2009		24,006
	Norwegian Krone		6,924,304		1,122,761		11/19/2009		25,186
	Polish Zloty		311,884		104,806		11/19/2009		3,677
	Pound Sterling		602,294		996,616		10/22/2009		(16,197	)
	Pound Sterling		697,498		1,150,747		11/19/2009		(15,355	)
	Singapore Dollar		325,190		224,022		11/19/2009		1,550
	South Korean Won		479,869,200		381,000		10/20/2009		4,025
	South Korean Won		861,052,000		691,886		10/21/2009		(1,007	)
	South Korean Won		1,695,036,000		1,360,000		11/19/2009		1,016
	Swedish Krona		7,726,320		996,572		10/22/2009		89,082
	Swedish Krona		12,342,101		1,699,513		11/19/2009		34,967
	Taiwan Dollar		18,406,320		566,000		10/27/2009		(5,004	)
	Turkish Lira		688,771		449,736		11/19/2009		2,307
				$	18,637,057			$	136,001
	SELLS
	Brazilian Real		4,610,990	$	2,274,000		10/2/2009		($159,754	)
	Brazilian Real		2,320,000		1,151,651		10/15/2009		(70,315	)
	Brazilian Real		2,934,100		1,525,000		11/3/2009		(15,695	)
	Danish Krone		905,066		171,064		11/19/2009		(3,008	)
	Euro		1,750,000		2,491,461		10/22/2009		(17,379	)
	Euro		63,750		91,841		11/4/2009		448
	Euro		1,385,747		1,959,658		11/19/2009		(26,944	)
	Japanese Yen		140,460,000		1,517,338		10/13/2009		7,380
	Malaysian Ringgit		1,729,674		486,000		10/14/2009		(4,306	)
	Mexican Peso		9,000,000		662,832		9/23/2009		(9,331	)
	Mexican Peso		23,200,000		1,660,642		10/15/2009		(67,234	)
	Mexican Peso		12,446,153		918,942		10/21/2009		(7,310	)
	Mexican Peso		40,539,460		3,099,392		11/19/2009		93,723
	Pound Sterling		52,503		86,620		11/19/2009		1,155
	South African Rand		935,068		114,169		11/19/2009		(4,327	)
	Swedish Krona		3,343,253		467,000		11/19/2009		(2,839	)
	Turkish Lira		141,523		91,176		10/21/2009		(2,230	)
	Turkish Lira		1,679,237		1,098,977		11/19/2009		(3,114	)
				$	19,867,763				($291,080	)
Strategic Income Fund
The Fund used forward foreign currency exchange contracts gain exposure to foreign currencies, to enhance potential gain, to hedge against anticipated currency exchange rates, and maintain diversity and liquidity of the portfolio.
Strategic Income Fund	BUYS
	Australian Dollar		11,700,000	$	9,877,144		9/30/2009		($9,929	)
	Australian Dollar		37,700,000		30,367,246		9/30/2009		1,427,112
	Australian Dollar		9,300,000		7,455,812		9/30/2009		387,358
	Australian Dollar		11,200,000		9,318,401		9/30/2009		127,138
	Australian Dollar		8,300,000		6,739,058		9/30/2009		260,761
	Canadian Dollar		5,120,556		4,624,362		9/30/2009		53,550
	Canadian Dollar		28,135,347		24,860,539		9/30/2009		842,660
	Canadian Dollar		5,121,424		4,648,445		9/30/2009		30,260
	Canadian Dollar		19,475,059		17,313,969		9/30/2009		477,577
	Canadian Dollar		8,784,440		8,031,323		9/30/2009		(6,250	)
	Canadian Dollar		214,000		196,821		9/30/2009		(1,321	)
	Canadian Dollar		5,221,474		4,531,349		9/30/2009		238,756
	Euro		62,680,000		88,853,979		9/30/2009		1,005,778
	Euro		36,760,000		52,149,580		9/30/2009		550,558
	Euro		9,300,000		13,151,781		9/30/2009		180,953
	Japanese Yen		448,616,000		4,708,643		9/30/2009		113,560

465

FINANCIAL INSTRUMENTS, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		PRINCIPAL AMOUNT COVERED BY CONTRACT (USD)		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Strategic Income Fund, continued	BUYS
	New Zealand Dollar		11,400,000	$	7,225,319		9/30/2009	$	583,564
	Pound Sterling		2,800,000		4,628,818		9/30/2009		(70,895	)
	Pound Sterling		5,600,000		9,169,972		9/30/2009		(54,124	)
	Pound Sterling		2,800,000		4,575,619		9/30/2009		(17,696	)
	Pound Sterling		5,600,000		9,240,336		9/30/2009		(124,488	)
				$	321,668,516			$	5,994,882
	SELLS
	Australian Dollar		26,180,000	$	21,090,125		9/30/2009		($988,821	)
	Australian Dollar		36,345,000		29,531,329		9/30/2009		(1,120,287	)
	Australian Dollar		8,300,000		6,769,480		9/30/2009		(230,339	)
	Australian Dollar		11,200,000		9,387,952		9/30/2009		(57,586	)
	Australian Dollar		5,700,000		4,531,349		9/30/2009		(275,755	)
	Canadian Dollar		15,579,224		14,505,962		9/30/2009		273,477
	Canadian Dollar		18,879,423		16,996,244		9/30/2009		(251,155	)
	Canadian Dollar		5,064,080		4,575,619		9/30/2009		(50,698	)
	Canadian Dollar		93,129,013		81,654,135		9/30/2009		(3,424,380	)
	Euro		26,407,367		36,578,692		9/30/2009		(1,279,629	)
	Euro		54,200,000		77,206,121		9/30/2009		(496,477	)
	Euro		27,900,000		39,985,785		9/30/2009		(12,416	)
	Euro		23,300,000		33,390,824		9/30/2009		(12,691	)
	Euro		4,600,000		6,623,632		9/30/2009		28,947
	Japanese Yen		438,037,600		4,639,041		9/30/2009		(69,454	)
	New Zealand Dollar		12,900,000		8,181,811		9/30/2009		(654,557	)
	New Zealand Dollar		30,433,686		19,120,572		9/30/2009		(1,726,192	)
	Pound Sterling		6,300,000		10,295,271		9/30/2009		39,942
	Pound Sterling		2,800,000		4,624,362		9/30/2009		66,438
	Pound Sterling		5,600,000		9,252,376		9/30/2009		136,528
	Pound Sterling		2,800,000		4,648,445		9/30/2009		90,521
	Pound Sterling		5,600,000		9,322,264		9/30/2009		206,416
				$	452,911,391				($9,808,168	)
Total Return Fund
The Fund used forward foreign currency exchange contracts to enhance potential gain, hedge against anticipated currency exchange rates, gain exposure to foreign currencies, and maintain the diversity and liquidity of the portfolio.
Total Return Fund	BUYS
	Australian Dollar		4,080,566	$	3,393,807		10/1/2009	$	47,277
	Brazilian Real		4,116,387		2,041,859		10/2/2009		130,836
	Canadian Dollar		1,965,000		1,821,794		9/17/2009		(26,750	)
	Chinese Yuan Renminbi		5,017,808		725,312		9/8/2009		9,318
	Chinese Yuan Renminbi		3,192,860		460,000		9/8/2009		7,449
	Chinese Yuan Renminbi		14,620,830		2,110,000		9/8/2009		30,556
	Chinese Yuan Renminbi		6,517,725		940,000		9/8/2009		14,225
	Chinese Yuan Renminbi		2,692,170		390,000		9/8/2009		4,146
	Chinese Yuan Renminbi		2,096,807		310,500		3/29/2010		(2,621	)
	Chinese Yuan Renminbi		2,101,712		310,500		3/29/2010		(1,900	)
	Chinese Yuan Renminbi		12,801,390		1,893,000		3/29/2010		(13,341	)
	Chinese Yuan Renminbi		3,170,334		466,500		8/25/2010		451
	Chinese Yuan Renminbi		6,181,814		909,500		8/25/2010		1,006
	Chinese Yuan Renminbi		6,023,822		887,000		8/25/2010		235
	Euro		82,000		116,548		9/4/2009		1,007
	Japanese Yen		56,114,000		585,741		9/9/2009		17,341
	Malaysian Ringgit		609,998		173,000		11/12/2009		(282	)
	Malaysian Ringgit		1,221,380		346,000		11/12/2009		(173	)
	Malaysian Ringgit		585,980		166,000		11/12/2009		(83	)
	Singapore Dollar		499,451		346,000		11/18/2009		450
	Singapore Dollar		499,209		346,000		11/18/2009		282
	South Korean Won		214,174,000		173,000		11/18/2009		(1,036	)
	South Korean Won		430,251,000		346,000		11/18/2009		(545	)
	South Korean Won		213,957,750		173,000		11/18/2009		(1,210	)
	Taiwan Dollar		11,300,360		346,000		11/16/2009		(949	)
	Taiwan Dollar		11,334,960		346,000		11/16/2009		107
				$	20,123,061			$	215,796

466

FINANCIAL INSTRUMENTS, CONTINUED

FUND	CURRENCY	PRINCIPAL AMOUNT COVERED BY CONTRACT		PRINCIPAL AMOUNT COVERED BY CONTRACT (USD)		SETTLEMENT DATE		UNREALIZED APPRECIATION (DEPRECIATION)
Total Return Fund, continued	SELLS
	Chinese Yuan Renminbi		13,342,832	$	1,907,005		9/8/2009		($46,446	)
	Chinese Yuan Renminbi		11,280,821		1,614,421		9/8/2009		(37,143	)
	Chinese Yuan Renminbi		2,986,260		426,000		9/8/2009		(11,202	)
	Chinese Yuan Renminbi		4,431,480		632,000		9/8/2009		(16,789	)
	Euro		10,824,000		15,391,912		9/4/2009		(125,388	)
	Japanese Yen		56,498,000		581,977		9/9/2009		(25,233	)
	Pound Sterling		4,843,000		8,201,015		9/16/2009		317,141
				$	28,754,330			$	54,940

 

Foreign forward currency exchange contract principal amounts covered by contract (USD) (notional amounts) at August 31, 2009 are generally representative of the foreign forward currency exchange contract activity during the period ended August 31, 2009.

Cash Collateral Received by Funds  For certain transactions the Funds may receive cash collateral from counterparties. At August 31, 2009, the following funds held cash collateral with respect to the financial instruments noted below:

Fund	Swaps		Cash Collateral Held Forward Foreign Currency Contracts		TBAs		Total
Global Bond Fund	$	8,860,000	$	70,000	$	50,000	$	8,980,000
Real Return Bond Fund		2,980,000		9,700,000		—		12,680,000
Total Return Fund		26,530,000		—		2,460,000		28,990,000

 

These items are recorded as payables for collateral held by Fund on the Statements of Assets and Liabilities.

Fair Value of Derivative Instruments by Risk Category

The table below summarizes the fair value of derivatives held by the Funds at August 31, 2009 by risk category:

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Statement of Assets and Liabilities location	Financial instruments location	Asset Derivatives Fair Value	Liability Derivatives Fair Value
Active Bond Fund	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	—	($47,069)
	Total			—	($47,069)
All Cap Core Fund	Equity Contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	$3,829,092	—
	Total			$3,829,092	—
Global Bond Fund
	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Options written; Swap contracts, at value	Futures†/Options/Interest rate swaps	$3,492,679	($1,108,668)
	Credit Contracts	Swap contracts, at value	Credit default swaps	5,260,525	(2,806,820)
	Foreign exchange contracts	Receivable/Payable for forward foreign currency exchange contracts	Foreign forward currency contracts	6,008,398	(2,412,861)
	Total			$14,761,602	($6,328,349)
High Income Fund	Foreign exchange contracts	Receivable/Payable for foreign forward currency exchange contracts; Options written, at value; Investments in unaffiliated issuers, at value*	Foreign forward currency contracts/Options	$939,280	($1,162,605)
	Equity Contracts	Investments in unaffiliated issuers, at value*	Options	1,231,760	—
	Total			$2,171,040	($1,162,605)

467

FINANCIAL INSTRUMENTS, CONTINUED

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Statement of Assets and Liabilities location	Financial instruments location	Asset Derivatives Fair Value	Liability Derivatives Fair Value
Index 500 Fund	Equity Contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	$2,373,237	—
	Total			$2,373,237	—
International Equity Index Fund	Foreign currency contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Receivable/Payable for forward foreign currency exchange contracts	Futures†/Foreign forward currency contracts	$2,066,184	($15,185)
	Total			$2,066,184	($15,185)
Investment Quality Bond Fund	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Swap contracts, at value	Futures†/Interest rate swaps	$116,172	($171,806)
	Credit Contracts	Swap contracts, at value	Credit default swaps	13,775	(24,743)
	Foreign exchange contracts	Receivable/Payable for forward foreign currency exchange contracts	Foreign forward currency contracts	145,932	(210,801)
	Total			$275,879	($407,350)
Mid Cap Index Fund	Equity Contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	$1,669,812	—
	Total			$1,669,812	—
Real Return Bond Fund	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Options written; Swap contracts, at value	Futures†/Options/Interest rate swaps	$3,793,547	($1,518,706)
	Credit Contracts	Swap contracts, at value	Credit default swaps	1,604,958	(1,085,887)
	Foreign exchange contracts	Receivable/Payable for forward foreign currency exchange contracts	Foreign forward currency contracts	268,474	(717,733)
	Total			$5,666,979	($3,322,326)
Small Cap Index Fund	Equity Contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	$200,160	—
	Total			$200,160	—
Smaller Company Growth Fund	Equity Contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	$4,181	—
	Total			$4,181	—

468

FINANCIAL INSTRUMENTS, CONTINUED

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Statement of Assets and Liabilities location	Financial instruments location	Asset Derivatives Fair Value	Liability Derivatives Fair Value
Spectrum Income Fund	Foreign currency contracts	Receivable/payable for futures variation margin, at value; Receivable/Payable for forward foreign currency exchange contracts	Futures†/Foreign forward currency contracts	$312,914	($557,467)
	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Swap contracts, at value	Futures†/Interest rate swaps	64,517	(76,197)
	Credit Contracts	Swap contracts, at value	Credit default swaps	—	(7,512)
	Total			$377,431	($641,176)
Strategic Bond Fund	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Options written; Investments in unaffiliated issuers, at value*	Futures†/Options	$1,201,761	($83,175)
	Total			$1,201,761	($83,175)

 

Strategic Income Fund	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	—	($327,512)
	Foreign exchange contracts	Receivable/Payable for forward foreign currency exchange contracts; Options written, at value; Investments in unaffiliated issuers, at value*	Foreign forward currency contracts/Options	$7,399,598	(11,276,014)
	Equity Contracts	Investments in unaffiliated issuers, at value*	Options	13,000	—
	Total			$7,412,598	($11,603,526)

 

Total Return Fund	Interest rate contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments; Options written; Swap contracts, at value	Futures†/Options/Interest rate swaps	$43,696,352	($2,114,473)
	Credit Contracts	Swap contracts, at value	Credit default swaps	1,040,490	(2,145,512)
	Foreign exchange contracts	Receivable/Payable for forward foreign currency exchange contracts	Foreign forward currency contracts	581,827	(311,091)
	Total			$45,318,669	($4,571,076)
U.S. Government Securities Fund	Interest rate contracts	Receivable/payable for futures variation margin; Options written, at value	Futures†/Options	$922,752	($589,658)
	Total			$922,752	($589,658)
U.S. Multi Sector Fund	Equity Contracts	Receivable/payable for futures variation margin; Net unrealized appreciation (depreciation) on investments	Futures†	$1,573,248	—
	Total			$1,573,248	—

 

*  Purchased options are included in the Fund’s Investments

†  Reflects cumulative appreciation/depreciation on Futures as disclosed in Note 3. Only the year end variation margin is separately disclosed on the Statements of Assets and Liabilities

469

FINANCIAL INSTRUMENTS, CONTINUED

Effect of derivative instruments on the Statements of Operations

The table below summarizes the realized gain (loss) in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the period ended August 31, 2009:

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Purchased Options			Written Options			Futures			Swaps			Forward Foreign Currency Contracts			Total
	Statement of Operations location— Net realized gain (loss) of	Investments in unaffiliated issuers			Options			Futures contracts			Swap contracts			Foreign currency transactions
Active Bond Fund	Interest rate contracts		—			—		$	478,488			—			—		$	478,488
	Credit contracts		—			—			—		$	119,266			—			119,266
	Foreign exchange contracts		—			—			—			—		$	992			992
	Total		—			—		$	478,488		$	119,266		$	992		$	598,746
All Cap Core Fund	Equity contracts		—			—			($20,253,506	)		—			—			($20,253,506	)
	Total		—			—			($20,253,506	)		—			—			($20,253,506	)
Global Bond Fund	Interest rate contracts	$	17,996,906			(13,774,015	)	$	14,775,945			($28,515,169	)		—			($9,516,333	)
	Credit contracts		—			—			—			6,325,799			—			6,325,799
	Foreign exchange contracts		2,188,887			(314,793	)		—			—		$	1,063,962			2,938,056
	Total	$	20,185,793			($14,088,808	)	$	14,775,945			($22,189,370	)	$	1,063,962			($252,478	)
Global Real Estate Fund	Foreign exchange contracts		—			—			—			—		$	4,567,190		$	4,567,190
	Total		—			—			—			—		$	4,567,190		$	4,567,190
High Income Fund	Foreign exchange contracts		—			—			—			—		$	577,735		$	577,735
	Total		—			—			—			—		$	577,735		$	577,735
High Yield Fund	Foreign exchange contracts		—			—			—			—			($189,771	)		($189,771	)
	Total		—			—			—			—			($189,771	)		($189,771	)
Index 500 Fund	Equity contracts		—			—		$	10,797,308			—			—		$	10,797,308
	Total		—			—		$	10,797,308			—			—		$	10,797,308
International Equity Index Fund	Equity contracts		—			—			($4,668,459	)		—			—			($4,668,459	)
	Foreign exchange contracts		—			—			—			—			($322,933	)		(322,933	)
	Total		—			—			($4,668,459	)		—			($322,933	)		($4,991,392	)
International Small Cap Fund	Foreign exchange contracts		—			—			—			—		$	15,740		$	15,740
	Total		—			—			—			—		$	15,740		$	15,740
International Small Company Fund	Foreign exchange contracts		—			—			—			—		$	11,748		$	11,748
	Total		—			—			—			—		$	11,748		$	11,748
International Value Fund	Foreign exchange contracts		—			—			—			—		$	7,609		$	7,609
	Total		—			—			—			—		$	7,609		$	7,609
Investment Quality Bond Fund	Interest rate contracts		—			—		$	276,563			($121,968	)		—		$	154,595
	Credit contracts		—			—			—			(7,474	)		—			(7,474	)
	Foreign currency contracts		—			—			—			—		$	451,435			451,435
	Total		—			—		$	276,563			($129,442	)	$	451,435		$	598,556
Mid Cap Index Fund	Equity contracts		—			—		$	1,254,334			—			—		$	1,254,334
	Total		—			—		$	1,254,334			—			—		$	1,254,334
Real Return Bond Fund	Interest rate contracts		($329,975	)	$	1,139,914		$	22,787,246			($33,271,853	)		—			($9,674,668	)
	Credit contracts		—			—			—			5,287,230			—			5,287,230
	Foreign exchange contracts		—			—			—			—			($2,643,412	)		(2,643,412	)
	Total		($329,975	)	$	1,139,914		$	22,787,246			($27,984,623	)		($2,643,412	)		($7,030,850	)
Small Cap Index Fund	Equity contracts		—			—			($1,882,455	)		—			—			($1,882,455	)
	Total		—			—			($1,882,455	)		—			—			($1,882,455	)
Small Cap Opportunities Fund	Equity contracts		—			—		$	601,028			—			—		$	601,028
	Total		—			—		$	601,028			—			—		$	601,028
Smaller Company Growth Fund	Equity contracts		—			—			($57,213	)		—			—			($57,213	)
	Total		—			—			($57,213	)		—			—			($57,213	)

470

FINANCIAL INSTRUMENTS, CONTINUED

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Purchased Options			Written Options			Futures			Swaps			Forward Foreign Currency Contracts			Total
	Statement of Operations location— Net realized gain (loss) of	Investments in unaffiliated issuers			Options			Futures contracts			Swap contracts			Foreign currency transactions
Spectrum Income Fund	Interest rate contracts		—		$	9,821		$	727,201		$	506,792			—		$	1,243,814
	Credit contracts		—			—			—			(201,346	)		—			(201,346	)
	Foreign currency contracts		—			—			44,490			—		$	3,282,243			3,326,733
	Total		—			9,821		$	771,691		$	305,446		$	3,282,243		$	4,369,201
Strategic Bond Fund	Interest rate contracts		($80,114	)	$	2,416,035		$	6,431,762			—			—		$	8,767,683
	Foreign exchange contracts		—			—			3,901,065			—			($822,850	)		3,078,215
	Total		($80,114	)	$	2,416,035		$	10,332,827			—			($822,850	)	$	11,845,898
Strategic Income Fund	Interest rate contracts		—			—			($2,176,395	)		—			—			($2,176,395	)
	Credit contracts		—			—			—			—			—			—
	Foreign exchange contracts	$	6,374,149		$	694,561			—			—		$	14,916,531			21,985,241
	Total	$	6,374,149		$	694,561			($2,176,395	)		—		$	14,916,531		$	19,808,846
Total Return Fund	Interest rate contracts		($3,297,356	)		($18,071,248	)	$	48,542,989			($15,179,686	)		—		$	11,994,699
	Credit contracts		—			—			—			855,214			—			855,214
	Foreign exchange contracts		—			—			—			—		$	3,500,640			3,500,640
	Total		($3,297,356	)		($18,071,248	)	$	48,542,989			($14,324,472	)	$	3,500,640		$	16,350,553
U.S. Government Securities Fund	Interest rate contracts		—			—		$	61,444			—			—		$	61,444
	Total		—			—		$	61,444			—			—		$	61,444
U.S. Multi Sector Fund	Equity contracts		—			—			($161,756	)		—			—			($161,756	)
	Total		—			—			($161,756	)		—			—			($161,756	)
Vista Fund	Foreign exchange contracts		—			—			—			—		$	172,677		$	172,677
	Total		—			—			—			—		$	172,677		$	172,677

 

The table below summarizes the change in unrealized appreciation (depreciation) in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the period ended August 31, 2009:

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Purchased Options			Written Options		Futures			Swaps			Forward Foreign Currency Contracts			Total
	Statement of Operations location — Change in unrealized appreciation (depreciation) of	Investments in unaffiliated issuers			Options written		Futures contracts			Swap contracts			Translation of assets and liabilities in foreign currencies
Active Bond Fund	Interest rate contracts		—			—		($47,069	)		—			—			($47,069	)
	Credit contracts		—			—		—			($51,187	)		—			(51,187	)
	Foreign currency contracts		—			—		—			—			($992	)		($992	)
	Total		—			—		($47,069	)		($51,187	)		($992	)		($99,248	)
All Cap Core Fund	Equity contracts		—			—	$	4,575,645			—			—		$	4,575,645
	Total		—			—	$	4,575,645			—			—		$	4,575,645
Global Bond Fund	Interest rate contracts		($727,649	)	$	871,300	$	835,036		$	9,929,974			—		$	10,908,661
	Credit contracts		—			—		—			(3,535,370	)		—			(3,535,370	)
	Foreign currency contracts		(638,492	)		—		—			—		$	11,649,063			11,010,571
	Total		($1,366,141	)	$	871,300	$	835,036		$	6,394,604		$	11,649,063		$	18,383,862
Global Real Estate Fund	Foreign currency contracts		—			—		—			—			($1,323,599	)		($1,323,599	)
	Total		—			—		—			—			($1,323,599	)		($1,323,599	)
High Income Fund	Equity contracts		($2,853,490	)		—		—			—			—			($2,853,490	)
	Foreign currency contracts		(181,104	)	$	2,587,592								($453,623	)		1,952,865
	Total		($3,034,594	)	$	2,587,592		—			—			($453,623	)		($900,625	)
High Yield Fund	Foreign currency contracts		—			—		—			—		$	59,536		$	59,536
	Total		—			—		—			—		$	59,536		$	59,536

471

FINANCIAL INSTRUMENTS, CONTINUED

Fund	Derivatives not accounted for as hedging instruments under FAS 133	Purchased Options			Written Options			Futures			Swaps			Forward Foreign Currency Contracts			Total
	Statement of Operations location — Change in unrealized appreciation (depreciation) of	Investments in unaffiliated issuers			Options written			Futures contracts			Swap contracts			Translation of assets and liabilities in foreign currencies
Index 500 Fund	Equity contracts		—			—		$	2,156,112			—			—		$	2,156,112
	Total		—			—		$	2,156,112			—			—		$	2,156,112
International Equity Index Fund	Equity contracts		—			—		$	2,250,179			—			—		$	2,250,179
	Foreign currency contracts		—			—			—			—		$	696,273		$	696,273
	Total		—			—		$	2,250,179			—		$	696,273		$	2,946,452
Investment Quality Bond Fund	Interest rate contracts		—			—			($16,655	)		($24,819	)		—			($41,474	)
	Credit contracts		—			—			—			(7,371	)		—			(7,371	)
	Foreign currency contracts		—			—			—			—			($293,423	)		(293,423	)
	Total		—			—			($16,655	)		($32,190	)		($293,423	)		($342,268	)
Mid Cap Index Fund	Equity contracts		—			—		$	1,407,214			—			—		$	1,407,214
	Total		—			—		$	1,407,214			—			—		$	1,407,214
Real Return Bond Fund	Interest rate contracts	$	182,081		$	1,431,015			($3,579,664	)	$	8,320,617			—		$	6,354,049
	Credit contracts		—			—			—			(2,419,611	)		—			(2,419,611	)
	Foreign currency contracts		—			—			—			—			($4,019,098	)		(4,019,098	)
	Total	$	182,081		$	1,431,015			($3,579,664	)	$	5,901,006			($4,019,098	)		($84,660	)
Small Cap Index Fund	Equity contracts		—			—			($430,520	)		—			—			($430,520	)
	Total		—			—			($430,520	)		—			—			($430,520	)
Smaller Company Growth Fund	Equity contracts		—			—		$	4,181			—			—		$	4,181
	Total		—			—		$	4,181			—			—		$	4,181
Spectrum Income Fund	Interest rate contracts		—			—		$	13,377			($19,153	)		—			($5,776	)
	Credit contracts		—			—			—			22,348			—			22,348
	Foreign currency contracts		—			—			(89,474	)		—			($829,826	)		(919,300	)
	Total		—			—			($76,097	)	$	3,195			($829,826	)		($902,728	)
Strategic Bond Fund	Interest rate contracts		($5,311	)	$	161,771		$	133,919			—			—		$	290,379
	Foreign currency contracts		—			—			(1,359,725	)		—		$	18,005			(1,341,720	)
	Total		($5,311	)	$	161,771			($1,225,806	)		—		$	18,005			($1,051,341	)
Strategic Income Fund	Interest rate contracts		—			—			($197,920	)		—			—			($197,920	)
	Equity contracts		($507,000	)		—			—			—			—			(507,000	)
	Foreign currency contracts		(876,551	)	$	361,381			—			—			($10,685,449	)		(11,200,619	)
	Total		($1,383,551	)	$	361,381			($197,920	)		—			($10,685,449	)		($11,905,539	)
Total Return Fund	Interest rate contracts	$	4,763,160			($1,880,909	)		($1,878,620	)	$	29,549,883			—		$	30,553,514
	Credit contracts		—			—			—			4,703,055			—			4,703,055
	Foreign currency contracts		—			—			—			—			($2,665,270	)		(2,665,270	)
	Total	$	4,763,160			($1,880,909	)		($1,878,620	)	$	34,252,938			($2,665,270	)	$	32,591,299
U.S. Government Securities Fund	Interest rate contracts		—			($487,059	)	$	833,066			—			—		$	346,007
	Total		—			($487,059	)	$	833,066			—			—		$	346,007
U.S. Multi Sector Fund	Equity contracts		—			—		$	1,185,051			—			—		$	1,185,051
	Total		—			—		$	1,185,051			—			—		$	1,185,051
Vista Fund	Foreign currency contracts		—			—			—			—			($966	)		(966	)
	Total		—			—			—			—			($966	)		($966	)

 

472

4. RISKS & UNCERTAINTIES

Fixed Income Risk  Fixed income securities are subject to credit and interest rate risk and involve some risk of default 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 expose 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, a 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, a Fund will succeed in enforcing them.

Mortgage Security Risk  Certain Funds of the Trust may invest a portion of their assets in issuers and/or 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. Decreases in interest rates may cause prepayments on underlying mortgages to an IO security to accelerate resulting in a lower than anticipated yield and increases the risk of loss on the IO investment.

Concentration Risk  The Funds may concentrate investments in a particular industry or sector of the economy or invest in a limited number of companies. Accordingly, the concentration may make the Funds’ 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.

Risks Associated with Foreign Investments  Investing in securities issued by companies whose principal business activities are outside the United States may involve significant risks not present in domestic investments. For example, there is generally less publicly available information about foreign companies, particularly those not subject to the disclosure and reporting requirements of the U.S. securities laws. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to domestic issuers. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on the removal of cash, securities or other assets of the Funds, political or financial instability, or diplomatic and other developments which could affect such investments. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers (particularly those located in developing countries) may be less liquid and more volatile than securities of comparable U.S. companies. In general, there is less overall governmental supervision and regulation of foreign securities markets, broker-dealers and issuers than in the United States.

Investing in High Yield Securities  Investing in high yield securities may involve greater risks and considerations not typically associated with investing in U.S. government bonds and other high quality fixed-income securities. These securities are non-investment grade securities, often referred to as “junk bonds.” Economic downturns may disrupt the high yield market and impair the ability of issuers to repay principal and interest. Also, an increase in interest rates would likely have an adverse impact on the value of such obligations. Moreover, high yield securities may be less liquid due to the extent that there is no established retail secondary market and because of a decline in the value of such securities. The Funds may not be able to sell bonds at desired prices and large purchases or sales of certain high-yield bond issues may cause substantial fluctuations in share price, yield and total return.

Emerging Markets Risk  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.

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.

Non-diversification Risk  Certain Funds are non-diversified. Since a non-diversified Fund may invest a high percentage of its assets in the securities of a small number of companies, it may be affected more than a diversified Fund by a change in the financial condition of any of these companies or by the financial markets’ assessment of any of these companies.

5. 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.

6.  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 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 each of the Funds. The Funds are not responsible for payment of the subadvisory fees. Advisory fees charged to the Funds are as follows:

Fund	All Asset Levels
Active Bond Fund		0.600	%
Global Bond Fund		0.700
Real Estate Securities Fund		0.700

 

473

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 Fund		0.850	%		0.825	%		0.800	%

 

Fund	First $500 million of Aggregate Net Assets*			Excess Over $500 million of Aggregate Net Assets*
All Cap Core Fund		0.800	%		0.750	%
American Diversified Growth & Income Portfolio		0.050			0.040
American Fundamental Holdings Portfolio		0.050			0.040
American Global Diversification Portfolio		0.050			0.040
Emerging Small Company Fund		0.970			0.900
High Yield Fund		0.700			0.650
Index 500 Fund		0.470			0.460
Investment Quality Bond Fund		0.600			0.550
Small Company Value Fund		1.050			1.000
Strategic Bond Fund		0.700			0.650
Strategic Income Fund		0.725			0.650
U.S. Government Securities Fund		0.620			0.550

 

Fund	First $1 billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
Blue Chip Growth Fund		0.825	%		0.800	%
Equity-Income Fund		0.825			0.800
Real Return Bond Fund		0.700			0.650
Total Return Fund1		0.700			0.675

 

1  When aggregate net assets are less than $3 billion, the advisory fee for Total Return Fund is 0.700% on all assets.

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*
Value & Restructuring Fund		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 Fund		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 Fund		1.050	%		0.950	%		0.850	%
International Value Fund		0.950			0.850			0.800
Mid Cap Stock Fund		0.875			0.850			0.825
Value Fund		0.750			0.725			0.650

 

Fund	First $50 million of Aggregate Net Assets*			Excess Over $50 million of Aggregate Net Assets*
Mid Value Fund		1.050	%		1.000	%
Natural Resources Fund		1.050			1.000

 

474

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

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 Opportunities Fund		1.000	%		0.950	%		0.900	%		0.850	%

 

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 Fund		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 Fund		0.900	%		0.850	%		0.825	%		0.800	%

 

Fund	First $125 million of Aggregate Net Assets*			Between $125 million and $375 million of Aggregate Net Assets*			Between $375 million and $1 billion of Aggregate Net Assets*			Excess Over $1 billion of Aggregate Net Assets*
Smaller Company Growth Fund		1.100	%		1.050	%		1.000	%		0.950	%

 

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 Fund		0.850	%		0.800	%		0.700	%		0.670	%

 

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 Fund		0.780	%		0.760	%		0.750	%		0.740	%

 

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 Fund		0.900	%		0.850	%		0.800	%

 

Fund	First $250 million of Aggregate Net Assets*			Excess Over $250 million of Aggregate Net Assets*
Short Term Government Income Fund		0.570	%		0.550	%
Small Company Growth Fund1		1.050			1.000
Spectrum Income Fund		0.800			0.725

 

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 Fund		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 Fund		0.875	%		0.850	%		0.825	%		0.800	%

 

475

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

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 Fund		0.950	%		0.925	%		0.900	%

 

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 Fund		0.780	%		0.730	%		0.680	%		0.650	%

 

Fund	First $100 million of Aggregate Net Assets*			Excess over $100 million of Aggregate Net Assets*
Emerging Markets Value Fund		1.000	%		0.950	%
International Equity Index Fund		0.550			0.530
International Small Company Fund		1.000			0.950
Small Cap Growth Fund		1.100			1.050
Small Cap Value Fund		1.100			1.050

 

1  When aggregate net assets exceed $1 billion, the advisory fee for the Small Company Growth Fund is 1.00% on all assets.

476

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

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 Fund		0.850	%		0.800	%		0.750	%
Alpha Opportunities Fund		1.025			1.000			0.975
Mid Cap Index Fund		0.490			0.480			0.460
Small Cap Index Fund		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 Fund		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 Fund		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 Fund		0.725	%		0.675	%		0.650	%		0.600	%

 

*  Aggregate 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 affiliate of JHIMS, John Hancock Distributors, LLC.

Fund	First $500 million of Average Net Assets			Excess Over $500 million of Average Net Assets
Total Bond Market Fund		0.490	%		0.470	%

 

Fund	First $250 million of Average Net Assets			Excess Over $250 million of Average Net Assets
Global Agribusiness Fund		0.850	%		0.800	%
Global Infrastructure Fund		0.850			0.800
Global Timber Fund		0.850			0.800

 

The advisory fee for Alternative Asset Allocation Fund 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 Fund pays a monthly management fee to the Adviser as stated below.

For Alternative Asset Allocation Fund, the fee on affiliated fund assets is stated as an annual percentage of the current value of the aggregate net assets of the Fund determined in accordance with the following schedule and that rate is applied to the affiliated fund assets of the Fund.

Fund	All Asset Levels
Alternative Asset Allocation Fund		0.150	%

 

The fee on other assets is stated as an annual percentage of the current value of the aggregate net assets of Alternative Asset Allocation Fund, determined in accordance with the following schedule and that rate is applied to the other assets of the Fund.

Fund	All Asset Levels
Alternative Asset Allocation Fund		0.600	%

 

John Hancock Trust is an open-end investment company advised by JHIMS and distributed by an affiliate of JHIMS, John Hancock Distributors, LLC.

477

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

The organizations described below act as subadvisers to the Trust and its Funds pursuant to Subadvisory Agreements with the Adviser. Fund management is allocated among the following managers:

Fund	Subadviser
Active Bond Fund	Declaration Management & Research, LLC and MFC Global Investment Management (U.S.), LLC*
All Cap Core Fund	Deutsche Investment Management Americas, Inc.
All Cap Growth Fund	Invesco AIM Capital Management, Inc.
All Cap Value Fund	Lord, Abbett & Company, LLC
Alpha Opportunities Fund	Wellington Management Company, LLP
Alternative Asset Allocation Fund	MFC Global Investment Management (U.S.A.) Limited*
American Diversified Growth & Income Portfolio	MFC Global Investment Management (U.S.A.) Limited*
American Fundamental Holdings Portfolio	MFC Global Investment Management (U.S.A.) Limited*
American Global Diversification Portfolio	MFC Global Investment Management (U.S.A.) Limited*
Blue Chip Growth Fund	T. Rowe Price Associates, Inc.
Capital Appreciation Fund	Jennison Associates, LLC
Core Bond Fund	Wells Capital Management, Inc.
Emerging Markets Value Fund	Dimensional Fund Advisors, L.P.
Emerging Small Company Fund	RCM Capital Management, LLC
Equity-Income Fund	T. Rowe Price Associates, Inc.
Fundamental Value Fund	Davis Selected Advisers, L.P.
Global Agribusiness Fund	MFC Global Investment Management (U.S.A.) Limited*
Global Bond Fund	Pacific Investment Management Company, LLC
Global Infrastructure Fund	MFC Global Investment Management (U.S.A.) Limited*
Global Real Estate Fund	Deutsche Investment Management Americas, Inc.
Global Timber Fund	MFC Global Investment Management (U.S.A.) Limited*
High Income Fund	MFC Global Investment Management (U.S.), LLC*
High Yield Fund	Western Asset Management Company
Index 500 Fund	MFC Global Investment Management (U.S.A.) Limited*
International Equity Index Fund	SSgA Funds Management, Inc.
International Opportunities Fund	Marsico Capital Management, LLC
International Small Cap Fund	Franklin Templeton Investment Corp.
International Small Company Fund	Dimensional Fund Advisors, L.P.
International Value Fund	Templeton Investment Counsel, LLC
Investment Quality Bond Fund	Wellington Management Company, LLP
Large Cap Fund	UBS Global Asset Management (Americas), Inc.
Large Cap Value Fund	BlackRock Investment Management, LLC
Mid Cap Index Fund	MFC Global Investment Management (U.S.A.) Limited*
Mid Cap Stock Fund	Wellington Management Company, LLP
Mid Cap Value Equity Fund	RiverSource Investments, LLC
Mid Value Fund	T. Rowe Price Associates, Inc.
Natural Resources Fund	Wellington Management Company, LLP
Real Estate Equity Fund	T. Rowe Price Associates, Inc.
Real Estate Securities Fund	Deutsche Investment Management Americas, Inc.
Real Return Bond Fund	Pacific Investment Management Company, LLC
Short Term Government Income Fund	MFC Global Investment Management (U.S.), LLC*
Small Cap Growth Fund	Wellington Management Company, LLP
Small Cap Index Fund	MFC Global Investment Management (U.S.A.) Limited*
Small Cap Opportunities Fund	Dimensional Fund Advisors, L.P., Invesco AIM Capital Management, Inc.
Small Cap Value Fund	Wellington Management Company, LLP
Small Company Growth Fund	Invesco AIM Capital Management, Inc.
Small Company Value Fund	T. Rowe Price Associates, Inc.
Smaller Company Growth Fund	MFC Global Investment Management (U.S.A.) Limited*, Frontier Capital Management Company, LLC and Perimeter Capital Management
Spectrum Income Fund	T. Rowe Price Associates, Inc.
Strategic Bond Fund	Western Asset Management Company
Strategic Income Fund	MFC Global Investment Management (U.S.), LLC*
Total Bond Market Fund	Declaration Management & Research, LLC
Total Return Fund	Pacific Investment Management Company, LLC
U.S. Government Securities Fund	Western Asset Management Company
U.S. High Yield Bond Fund	Wells Capital Management, Inc.
U.S. Multi Sector Fund	Grantham, Mayo, Van Otterloo & Company, LLC
Value Fund	Morgan Stanley Investment Management, Inc. (doing business as Van Kampen)
Value & Restructuring Fund	Columbia Management Advisors, LLC
Vista Fund	American Century Investment Management, Inc.

 

*  An affiliate of the Adviser.

478

INVESTMENT ADVISORY AND OTHER AGREEMENTS, CONTINUED

The investment management fees incurred for the year ended August 31, 2009, were equivalent to an annual effective rate of the Funds’ average daily net assets as follows:

Fund	Annual Effective Rate			Fund	Annual Effective Rate
Active Bond Fund		0.60	%	Large Cap Fund		0.75	%
All Cap Core Fund		0.78	%	Large Cap Value Fund		0.81	%
All Cap Growth Fund		0.85	%	Mid Cap Index Fund		0.47	%
All Cap Value Fund		0.84	%	Mid Cap Stock Fund		0.84	%
Alpha Opportunities Fund		0.99	%	Mid Cap Value Equity Fund		0.87	%
Alternative Asset Allocation Fund		0.20	%	Mid Value Fund		1.00	%
American Diversified Growth & Income Portfolio		0.04	%	Natural Resources Fund		1.00	%
American Fundamental Holdings Portfolio		0.04	%	Real Estate Equity Fund		0.87	%
American Global Diversification Fund		0.04	%	Real Estate Securities Fund		0.70	%
Blue Chip Growth Fund		0.81	%	Real Return Bond Fund		0.68	%
Capital Appreciation Fund		0.73	%	Short Term Government Income Fund		0.57	%
Core Bond Fund		0.63	%	Small Cap Growth Fund		1.07	%
Emerging Markets Value Fund		0.95	%	Small Cap Index Fund		0.48	%
Emerging Small Company Fund		0.97	%	Small Cap Opportunities Fund		1.00	%
Equity-Income Fund		0.81	%	Small Cap Value Fund		1.08	%
Fundamental Value Fund		0.76	%	Small Company Growth Fund		1.05	%
Global Agribusiness Fund		0.85	%	Small Company Value Fund		1.03	%
Global Bond Fund		0.70	%	Smaller Company Growth Fund		1.07	%
Global Infrastructure Fund		0.85	%	Spectrum Income Fund		0.73	%
Global Real Estate Fund		0.94	%	Strategic Bond Fund		0.67	%
Global Timber Fund		0.85	%	Strategic Income Fund		0.69	%
High Income Fund		0.68	%	Total Bond Market Fund		0.49	%
High Yield Fund		0.66	%	Total Return Fund		0.68	%
Index 500 Fund		0.46	%	U.S. Government Securities Fund		0.62	%
International Equity Index Fund		0.53	%	U.S. High Yield Bond Fund		0.73	%
International Opportunities Fund		0.88	%	U.S. Multi Sector Fund		0.76	%
International Small Cap Fund		1.00	%	Value Fund		0.74	%
International Small Company Fund		0.96	%	Value & Restructuring Fund		0.82	%
International Value Fund		0.82	%	Vista Fund		0.89	%
Investment Quality Bond Fund		0.60	%

 

Expense Reimbursements  The Adviser has contractually agreed to waive its advisory fee on International Value Fund, Small Cap Opportunities Fund and Smaller Company Growth Fund so that the amount retained by the Adviser after payment of the subadvisory fees for each Fund does not exceed 0.45% of the Fund’s average net assets. The expense reimbursement shall continue in effect until October 1, 2009 for Smaller Company Growth Fund and December 31, 2009 for International Value Fund and Small Cap Opportunities Fund, and thereafter, until termination by the Adviser on notice to the Trust. The Adviser has contractually agreed to reduce its advisory fee or make payments to reimburse each Fund, in an amount equal to the amount by which all expenses of the Funds (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 and class specific expenses) exceed the expense limits set forth as a percentage of average net assets. These expense limits are as follows: 0.075% for Total Bond Market Fund and 0.25% for Value Fund. This reimbursement shall continue in effect until December 31, 2009 and thereafter until terminated by the Adviser on notice to the Trust. The Adviser has voluntarily agreed to these expense limits as follows: 0.05% for Index 500 Fund and International Equity Index Fund and 0.075% for 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 the Trust. For the above agreements, the Adviser reimbursed the Funds as follows for the year ended August 31, 2009: $187,631 for International Value Fund, $50,756 for Small Cap Opportunities Fund, $120,081 for Smaller Company Growth Fund.

In the case of Alternative Asset Allocation Fund, the Adviser has contractually agreed to reduce its advisory fee or make a payment to reimburse the 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 0.04% of the Fund’s average net assets. This expense reimbursement shall continue in effect until December 31, 2009, and thereafter until termination by the Adviser on notice to the Fund. The Adviser reimbursed the Fund in the amount of $44,590 during the year ended August 31, 2009.

In the cases of Global Agribusiness Fund, Global Infrastructure Fund and Global Timber Fund, the Adviser has contractually agreed to limit Fund expenses (excluding taxes, portfolio brokerage commissions, interest, litigation and indemnification expenses and extraordinary expenses not incurred in the ordinary course of the Fund’s business, 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) so that the total Fund operating expenses do not exceed 1.45% for Class A and 1.00% for Class I of the average net assets attributable to the respective classes of the Fund. This expense reimbursement shall continue in effect until December 31, 2009, and thereafter until termination by the Adviser on notice to the Trust. The Adviser reimbursed Global Agribusiness Fund, Global Infrastructure Fund and Global Timber Fund in the amounts of $10,422, $9,136 and $9,070, respectively, for the year ended August 31, 2009.

In addition, for Global Agribusiness Fund, Global Infrastructure Fund and Global Timber Fund the Adviser has voluntarily 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

479

INVESTMENT ADVISORY AND OTHER AGREEMENTS , CONTINUED

beneficial interests in shares of the Fund) exceeds 0.97% of average net assets. The Adviser reimbursed Global Agribusiness Fund, Global Infrastructure Fund and Global Timber Fund in the amounts of $35,749, $42,991 and $37,985, respectively.

In the case of the JHF II American Funds, the Adviser has contractually agreed to waive its advisory fees. This expense waiver was contractual until July 1, 2009 and was voluntarily continued thereafter. The Adviser reimbursed the Funds in the amounts of $1,956, $1,348 and $1,205 for American Diversified Growth & Income Portfolio, American Fundamental Holdings Portfolio and American Global Diversification Portfolio, respectively. In addition the Adviser has voluntarily agreed to reimburse the JHF II American Funds for “other” fund expenses exceeding 0.06% of the Funds’ average net assets. The amounts of these reimbursements are $39,871, $39,537 and $38,741, respectively.

In addition, the JHF II American Funds receive a fee equal to 0.05% of the average net asset value of their investment in the underlying American Funds for providing various account maintenance services. Under this agreement, American Diversified Growth & Income Portfolio, American Fundamental Holdings Portfolio and American Global Diversification Portfolio have received $2,275, $1,569 and $1,397, respectively.

The Adviser also voluntarily agreed to waive a portion of its advisory fees for Blue Chip Growth Fund, Equity-Income Fund, Mid Value Fund, Real Estate Equity Fund, Small Company Value Fund and Spectrum Income Fund in the amounts of $390,906, $209,518, $38,053, $59,174, $181,666, and $203,971, respectively.

These voluntary expense reimbursements may be terminated by the Adviser at any time upon notice to the Trust. These expense reimbursements are shown as a reduction of total expenses in the Statements of Operations.

Expense Recapture  Effective January 1, 2009, the Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements and made subsequent to January 1, 2009, for a period of three years following the beginning of the month in which such reimbursement or waivers occurred. The waived or reimbursed expenses subject to potential recovery that expire in 2012 are as follows:

Fund	Reimbursement Amount Subject to Recapture
Alternative Asset Allocation Fund	$	44,590
American Diversified Growth & Income Portfolio		31,371
American Fundamental Holdings Portfolio		31,982
American Global Diversification Portfolio		32,906
Global Agribusiness Fund		46,171
Global Infrastructure Fund		52,127
Global Timber Fund		47,055
Short Term Government Income Fund		53,776

 

Accounting and legal services fees  Pursuant to the Service 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 accounting and legal services fees incurred for the period ended August 31, 2009, were equivalent to an annual effective rate of 0.02% of each Fund’s average daily net assets, with the exception of Small Cap Opportunities Fund and U.S. Multi Sector Fund, in which the effective rate was 0.01%.

Distribution Plans  The Funds have a Distribution Agreement with the Distributor. The Funds have adopted Distribution Plans with respect to Class A shares and Class 1 shares, 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% and 0.05% of the average daily net assets of Class A shares and Class 1 shares, 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 (the Conduct Rules). Under the Conduct Rules, curtailment of a portion of the Funds’ 12b-1 payments could occur under certain circumstances.

Sales Charges  Class A Shares are assessed up-front sales charges. For the year ended August 31, 2009, there were no sales charges assessed for Alternative Asset Allocation Fund, Global Agribusiness Fund, Global Infrastructure Fund or Global Timber Fund.

7.  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.

8.  FUND SHARE TRANSACTIONS Share activity for the Funds for the years ended August 31, 2009 and August 31, 2008, were as follows:

Active Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		434,999		$	3,745,649			408,416		$	3,866,554
Distributions reinvested		228,022			1,917,328			193,573			1,814,384
Repurchased		(782,499	)		(6,612,314	)		(724,415	)		(6,852,622	)
Net increase (decrease)		(119,478	)		($949,337	)		(122,426	)		($1,171,684	)
Class NAV shares
Sold		13,197,254		$	111,468,719			7,641,399		$	72,168,162
Distributions reinvested		3,821,180			32,095,020			3,081,542			28,839,200
Repurchased		(19,652,661	)		(165,413,864	)		(4,810,081	)		(44,461,161	)
Net increase (decrease)		(2,634,227	)		($21,850,125	)		5,912,860		$	56,546,201
Net increase (decrease)		(2,753,705	)		($22,799,462	)		5,790,434		$	55,374,517

 

480

FUND SHARE TRANSACTIONS, CONTINUED

All Cap Core Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		13,452,401		$	83,842,423			33,115,679		$	334,869,340
Distributions reinvested		1,202,340			7,286,181			3,195,022			33,100,430
Repurchased		(26,311,168	)		(164,758,370	)		(2,340,713	)		(24,299,982	)
Net increase (decrease)		(11,656,427	)		($73,629,766	)		33,969,988		$	343,669,788

 

All Cap Growth Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		6,659,982		$	67,463,747			222,290		$	3,929,960
Distributions reinvested		123,183			1,293,422			117,538			2,192,078
Repurchased		(941,182	)		(9,920,162	)		(264,574	)		(4,730,004	)
Net increase (decrease)		5,841,983		$	58,837,007			75,254		$	1,392,034
Class NAV shares
Sold		241,382		$	2,867,938			585,767		$	9,936,872
Distributions reinvested		—			—			368,279			6,879,454
Repurchased		(6,323,837	)		(67,218,053	)		(4,593	)		(77,036	)
Net increase (decrease)		(6,082,455	)		($64,350,115	)		949,453		$	16,739,290
Net increase (decrease)		(240,472	)		($5,513,108	)		1,024,707		$	18,131,324

 

All Cap Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		7,396,779		$	57,628,340			343,546		$	4,178,379
Distributions reinvested		281,814			2,254,513			708,286			8,513,597
Repurchased		(942,910	)		(7,612,935	)		(300,130	)		(3,733,908	)
Net increase (decrease)		6,735,683		$	52,269,918			751,702		$	8,958,068
Class NAV shares
Sold		25,119,325		$	209,963,841			232,532		$	3,567,237
Distributions reinvested		118,452			942,883			1,994,466			23,853,809
Repurchased		(2,816,595	)		(23,241,944	)		(94,667	)		(1,029,852	)
Net increase (decrease)		22,421,182		$	187,664,780			2,132,331		$	26,391,194
Net increase (decrease)		29,156,865		$	239,934,698			2,884,033		$	35,349,262

 

Alpha Opportunities Fund	Period ended 8-31-091
	Shares			Amount
Class NAV shares
Sold		62,325,689		$	565,737,804
Distributions reinvested		31,026			268,998
Repurchased		(641,878	)		(6,810,948	)
Net increase (decrease)		61,714,837		$	559,195,854

 

1  Period from 10-7-08 (commencement of operations) to 8-31-09.

Alternative Asset Allocation Fund	Period ended 8-31-091
	Shares		Amount
Class A shares
Sold		100,000	$	1,000,000
Net increase (decrease)		100,000	$	1,000,000

 

1  Period from 1-2-09 (commencement of operations) to 8-31-09.

American Diversified Growth & Income Portfolio	Year ended 8-31-09						Period ended 8-31-081
	Shares			Amount			Shares		Amount
Class 1 shares
Sold		1,279,236		$	9,607,598			100,261	$	1,002,513
Distributions reinvested		6,561			47,109			—		—
Repurchased		(30,388	)		(236,087	)		—		—
Net increase (decrease)		1,255,409		$	9,418,620			100,261	$	1,002,513

 

1  Period from 7-1-08 (commencement of operations) to 8-31-08.

American Fundamental Holdings Portfolio	Year ended 8-31-09						Period ended 8-31-081
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		858,585		$	6,629,857			100,639		$	1,006,256
Distributions reinvested		3,897			29,345			—			—
Repurchased		(59,177	)		(489,241	)		(453	)		(4,426	)
Net increase (decrease)		803,305		$	6,169,961			100,186		$	1,001,830

 

1  Period from 7-1-08 (commencement of operations) to 8-31-08.

481

FUND SHARE TRANSACTIONS, CONTINUED

American Global Diversification Portfolio	Year ended 8-31-09						Period ended 8-31-081
	Shares			Amount			Shares		Amount
Class 1 shares
Sold		834,648		$	6,226,498			100,187	$	1,001,799
Distributions reinvested		5,103			34,804			—		—
Repurchased		(34,825	)		(275,852	)		—		—
Net increase (decrease)		804,926		$	5,985,450			100,187	$	1,001,799

 

1  Period from 7-1-08 (commencement of operations) to 8-31-08.

Blue Chip Growth Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		888,063		$	12,043,485			1,533,016		$	31,199,498
Distributions reinvested		29,937			371,815			79,594			1,729,575
Repurchased		(1,181,788	)		(16,186,261	)		(1,253,691	)		(25,522,134	)
Net increase (decrease)		(263,788	)		($3,770,961	)		358,919		$	7,406,939
Class NAV shares
Sold		10,927,739		$	141,487,414			37,967,005		$	759,832,260
Distributions reinvested		321,726			3,992,625			646,767			14,041,304
Repurchased		(27,365,374	)		(359,553,539	)		(12,292,237	)		(250,610,821	)
Net increase (decrease)		(16,115,909	)		($214,073,500	)		26,321,535		$	523,262,743
Net increase (decrease)		(16,379,697	)		($217,844,461	)		26,680,454		$	530,669,682

 

Capital Appreciation Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		965,382		$	7,501,065			602,719		$	6,546,648
Distributions reinvested		28,991			204,967			14,857			170,414
Repurchased		(994,131	)		(7,853,639	)		(727,950	)		(7,944,104	)
Net increase (decrease)		242			($147,607	)		(110,374	)		($1,227,042	)
Class NAV shares
Sold		43,116,847		$	328,018,111			53,608,989		$	587,015,773
Distributions reinvested		526,685			3,728,929			209,333			2,403,139
Repurchased		(16,144,174	)		(120,212,860	)		(12,198,156	)		(131,087,768	)
Net increase (decrease)		27,499,358		$	211,534,180			41,620,166		$	458,331,144
Net increase (decrease)		27,499,600		$	211,386,573			41,509,792		$	457,104,102

 

Core Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		735,307		$	9,129,567			324,153		$	4,113,576
Distributions reinvested		25,511			313,645			11,455			143,652
Repurchased		(356,061	)		(4,378,226	)		(103,644	)		(1,305,951	)
Net increase (decrease)		404,757		$	5,064,986			231,964		$	2,951,277
Class NAV shares
Sold		19,001,229		$	238,596,906			2,007,416		$	25,454,526
Distributions reinvested		948,219			11,648,365			1,024,017			12,814,067
Repurchased		(9,748,353	)		(116,900,767	)		(3,164,733	)		(39,787,113	)
Net increase (decrease)		10,201,095		$	133,344,504			(133,300	)		($1,518,520	)
Net increase (decrease)		10,605,852		$	138,409,490			98,664		$	1,432,757

 

Emerging Markets Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		68,907,123		$	383,341,352			21,434,595		$	233,874,052
Distributions reinvested		4,001,143			21,646,182			733,944			8,770,631
Repurchased		(19,841,730	)		(147,386,474	)		(4,968,702	)		(57,212,941	)
Net increase (decrease)		53,066,536		$	257,601,060			17,199,837		$	185,431,742

 

Emerging Small Company Fund	Year ended 8-31-091						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		198,371		$	3,607,501			174,760		$	5,107,231
Repurchased		(278,119	)		(5,157,113	)		(322,457	)		(9,214,491	)
Net increase (decrease)		(79,748	)		($1,549,612	)		(147,697	)		($4,107,260	)
Class NAV shares
Sold		189,585		$	3,987,530			1,236,945		$	34,772,244
Repurchased		(1,629,162	)		(28,308,138	)		(26,509	)		(785,795	)
Net increase (decrease)		(1,439,577	)		($24,320,608	)		1,210,436		$	33,986,449
Net increase (decrease)		(1,519,325	)		($25,870,220	)		1,062,739		$	29,879,189

 

1  Class NAV shares were terminated on 11-20-08.

482

FUND SHARE TRANSACTIONS, CONTINUED

Equity-Income Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		1,711,067		$	17,874,688			468,403		$	8,149,818
Distributions reinvested		1,457,662			15,013,923			711,876			13,062,916
Repurchased		(1,544,435	)		(16,442,282	)		(1,933,115	)		(34,485,513	)
Net increase (decrease)		1,624,294		$	16,446,329			(752,836	)		($13,272,779	)
Class NAV shares
Sold		19,424,390		$	190,012,653			9,960,012		$	173,093,008
Distributions reinvested		6,828,433			70,264,573			2,701,559			49,546,589
Repurchased		(20,832,883	)		(229,502,710	)		(1,053,596	)		(17,456,223	)
Net increase (decrease)		5,419,940		$	30,774,516			11,607,975		$	205,183,374
Net increase (decrease)		7,044,234		$	47,220,845			10,855,139		$	191,910,595

 

Fundamental Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		4,092,872		$	42,923,521			468,943		$	7,745,343
Distributions reinvested		106,900			1,121,380			87,944			1,547,821
Repurchased		(842,270	)		(9,089,292	)		(557,620	)		(9,287,824	)
Net increase (decrease)		3,357,502		$	34,955,609			(733	)	$	5,340
Class NAV shares
Sold		24,286,333		$	247,884,176			46,150,851		$	765,802,292
Distributions reinvested		1,275,339			13,340,051			1,166,149			20,477,570
Repurchased		(19,789,519	)		(218,868,125	)		(1,300,118	)		(20,671,636	)
Net increase (decrease)		5,772,153		$	42,356,102			46,016,882		$	765,608,226
Net increase (decrease)		9,129,655		$	77,311,711			46,016,149		$	765,613,566

 

Global Agribusiness Fund	Period ended 8-31-091
	Shares		Amount
Class A shares
Sold		100,000	$	1,000,000
Distributions reinvested		364		3,919
Net increase		100,364	$	1,003,919
Class I shares
Sold		100,000	$	1,000,000
Distributions reinvested		476		5,119
Net increase		100,476	$	1,005,119
Net increase (decrease)		200,840	$	2,009,038

 

1  Period from 1-2-09 (commencement of operations) to 8-31-09.

Global Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		592,681		$	7,063,630			3,022,426		$	47,839,688
Distributions reinvested		1,198,473			13,111,298			186,670			2,808,567
Repurchased		(1,943,488	)		(23,889,066	)		(1,124,604	)		(17,488,096	)
Net increase (decrease)		(152,334	)		($3,714,138	)		2,084,492		$	33,160,159
Class NAV shares
Sold		14,755,274		$	170,390,401			6,330,109		$	98,047,022
Distributions reinvested		8,960,746			97,761,740			2,987,529			44,720,972
Repurchased		(10,304,360	)		(125,333,579	)		(26,454,359	)		(416,360,062	)
Net increase (decrease)		13,411,660		$	142,818,562			(17,136,721	)		($273,592,068	)
Net increase (decrease)		13,259,326		$	139,104,424			(15,052,229	)		($240,431,909	)

 

Global Infrastructure Fund	Period ended 8-31-091
	Shares		Amount
Class A shares
Sold		100,000	$	1,000,000
Distributions reinvested		1,214		11,386
Net increase		101,214	$	1,011,386
Class I shares
Sold		100,000	$	1,000,000
Distributions reinvested		1,319		12,389
Net increase		101,319	$	1,012,389
Net increase (decrease)		202,533	$	2,023,775

 

1  Period from 1-2-09 (commencement of operations) to 8-31-09.

483

FUND SHARE TRANSACTIONS, CONTINUED

Global Real Estate Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		17,931,744		$	83,643,789			31,707,847		$	296,687,499
Distributions reinvested		3,312,402			16,836,266			3,466,517			35,843,787
Repurchased		(52,245,635	)		(280,570,461	)		(1,596,250	)		(15,630,663	)
Net increase (decrease)		(31,001,489	)		($180,090,406	)		33,578,114		$	316,900,623

 

Global Timber Fund	Period ended 8-31-091
	Shares		Amount
Class A shares
Sold		100,000	$	1,000,000
Distributions reinvested		426		3,924
Net increase		100,426	$	1,003,924
Class I shares
Sold		100,000	$	1,000,000
Distributions reinvested		537		4,959
Net increase		100,537	$	1,004,959
Net increase (decrease)		200,963	$	2,008,883

 

1  Period from 1-2-09 (commencement of operations) to 8-31-09.

High Income Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		13,461,666		$	65,914,601			14,686,297		$	132,551,795
Distributions reinvested		10,683,514			57,336,025			5,441,978			49,563,239
Repurchased		(15,272,933	)		(83,886,371	)		(187,778	)		(1,617,425	)
Net increase (decrease)		8,872,247		$	39,364,255			19,940,497		$	180,497,609

 

High Yield Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		3,012,087		$	20,842,983			696,311		$	6,622,045
Distributions reinvested		718,394			4,779,611			466,824			4,385,088
Repurchased		(1,191,632	)		(8,165,151	)		(1,046,795	)		(9,848,226	)
Net increase (decrease)		2,538,849		$	17,457,443			116,340		$	1,158,907
Class NAV shares
Sold		15,422,137		$	102,101,227			15,104,482		$	144,258,647
Distributions reinvested		22,179,420			145,505,694			15,893,489			148,442,048
Repurchased		(96,016,333	)		(660,010,339	)		(15,317,361	)		(143,061,749	)
Net increase (decrease)		(58,414,776	)		($412,403,418	)		15,680,610		$	149,638,946
Net increase (decrease)		(55,875,927	)		($394,945,975	)		15,796,950		$	150,797,853

 

Index 500 Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		227,842,402		$	1,531,455,178			94,248,083		$	966,656,440
Distributions reinvested		2,901,554			19,527,458			228,837			2,480,594
Repurchased		(88,931,480	)		(618,067,848	)		(785,384	)		(8,129,050	)
Net increase (decrease)		141,812,476		$	932,914,788			93,691,536		$	961,007,984

 

International Equity Index Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		7,745,230		$	96,174,986			8,878,779		$	184,866,624
Distributions reinvested		764,817			9,391,951			973,901			22,613,981
Repurchased		(14,397,343	)		(192,129,420	)		(1,922,298	)		(43,811,456	)
Net increase (decrease)		(5,887,296	)		($86,562,483	)		7,930,382		$	163,669,149

 

International Opportunities Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		769,809		$	7,623,458			1,150,282		$	22,400,700
Distributions reinvested		27,994			262,865			242,229			4,704,082
Repurchased		(533,780	)		(5,523,254	)		(449,580	)		(7,683,976	)
Net increase (decrease)		264,023		$	2,363,069			942,931		$	19,420,806
Class NAV shares
Sold		11,813,975		$	115,024,206			14,856,302		$	258,101,101
Distributions reinvested		826,446			7,768,599			5,111,741			99,474,478
Repurchased		(9,056,314	)		(94,542,400	)		(3,869,863	)		(83,940,128	)
Net increase (decrease)		3,584,107		$	28,250,405			16,098,180		$	273,635,451
Net increase (decrease)		3,848,130		$	30,613,474			17,041,111		$	293,056,257

 

484

FUND SHARE TRANSACTIONS, CONTINUED

International Small Cap Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		6,401,461		$	60,916,529			323,611		$	6,576,232
Distributions reinvested		1,209,707			9,759,113			574,235			11,117,192
Repurchased		(1,061,526	)		(9,598,421	)		(1,221,799	)		(24,324,310	)
Net increase (decrease)		6,549,642		$	61,077,221			(323,953	)		($6,630,886	)
Class NAV shares
Sold		3,648,017		$	34,368,305			5,212,179		$	103,270,603
Distributions reinvested		3,387,992			27,332,037			3,349,312			64,842,671
Repurchased		(15,964,929	)		(155,307,918	)		(5,082,986	)		(93,717,967	)
Net increase (decrease)		(8,928,920	)		(93,607,576	)		3,478,505			74,395,307
Net increase (decrease)		(2,379,278	)		($32,530,355	)		3,154,552		$	67,764,421

 

International Small Company Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		6,187,305		$	37,068,576			24,465,587		$	242,874,346
Distributions reinvested		2,371,566			12,498,150			2,258,402			23,735,806
Repurchased		(38,605,196	)		(227,744,201	)		(833,369	)		(9,068,743	)
Net increase (decrease)		(30,046,325	)		($178,177,475	)		25,890,620		$	257,541,409

 

International Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		705,634		$	7,699,836			17,402,083		$	364,303,204
Distributions reinvested		1,905,202			19,509,272			1,688,787			33,184,656
Repurchased		(3,750,547	)		(41,814,039	)		(3,552,354	)		(63,541,432	)
Net increase (decrease)		(1,139,711	)		($14,604,931	)		15,538,516		$	333,946,428
Class NAV shares
Sold		9,713,464		$	96,453,789			16,864,902		$	311,772,733
Distributions reinvested		5,530,988			56,471,391			4,267,829			83,649,487
Repurchased		(16,637,868	)		(187,156,148	)		(8,697,693	)		(158,842,966	)
Net increase (decrease)		(1,393,416	)		($34,230,968	)		12,435,038		$	236,579,254
Net increase (decrease)		(2,533,127	)		($48,835,899	)		27,973,554		$	570,525,682

 

Investment Quality Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		1,342,355		$	14,893,793			1,466,981		$	17,340,206
Distributions reinvested		285,560			3,147,040			213,443			2,493,124
Repurchased		(870,989	)		(9,725,081	)		(749,209	)		(8,821,520	)
Net increase (decrease)		756,926		$	8,315,752			931,215		$	11,011,810
Class NAV shares
Sold		1,804,356		$	20,253,131			2,308,012		$	27,265,056
Distributions reinvested		596,208			6,572,761			597,685			6,973,371
Repurchased		(4,924,654	)		(52,711,344	)		(587,097	)		(6,925,167	)
Net increase (decrease)		(2,524,090	)		($25,885,452	)		2,318,600		$	27,313,260
Net increase (decrease)		(1,767,164	)		($17,569,700	)		3,249,815		$	38,325,070

 

Large Cap Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		476,744		$	4,384,915			411,068		$	6,096,677
Distributions reinvested		51,036			450,141			64,633			1,000,527
Repurchased		(430,221	)		(3,965,976	)		(456,311	)		(6,901,587	)
Net increase (decrease)		97,559		$	869,080			19,390		$	195,617
Class NAV shares
Sold		3,872,293		$	34,916,118			4,973,556		$	73,113,718
Distributions reinvested		490,434			4,320,722			837,069			12,957,836
Repurchased		(11,140,763	)		(104,478,015	)		(824,896	)		(11,944,331	)
Net increase (decrease)		(6,778,036	)		($65,241,175	)		4,985,729		$	74,127,223
Net increase (decrease)		(6,680,477	)		($64,372,095	)		5,005,119		$	74,322,840

 

Large Cap Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		787,705		$	11,833,659			341,878		$	8,042,113
Distributions reinvested		91,070			1,419,786			169,130			4,270,535
Repurchased		(577,739	)		(8,940,990	)		(606,248	)		(14,638,101	)
Net increase (decrease)		301,036		$	4,312,455			(95,240	)		($2,325,453	)
Class NAV shares
Sold		8,357,280		$	119,587,418			11,927,399		$	285,783,356
Distributions reinvested		414,458			6,469,691			615,351			15,568,373
Repurchased		(9,971,730	)		(154,430,247	)		(206,976	)		(5,185,839	)
Net increase (decrease)		(1,199,992	)		($28,373,138	)		12,335,774		$	296,165,890
Net increase (decrease)		(898,956	)		($24,060,683	)		12,240,534		$	293,840,437

 

485

FUND SHARE TRANSACTIONS, CONTINUED

Mid Cap Index Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		20,081,316		$	244,359,674			5,219,379		$	101,296,492
Distributions reinvested		806,316			9,329,070			2,023,755			39,362,032
Repurchased		(4,104,625	)		(46,923,803	)		(9,402,930	)		(176,834,064	)
Net increase (decrease)		16,783,007		$	206,764,941			(2,159,796	)		($36,175,540	)

 

Mid Cap Stock Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		1,498,482		$	16,519,734			15,757,400		$	306,404,980
Distributions reinvested		—			—			1,085,372			20,871,703
Repurchased		(2,530,777	)		(28,735,579	)		(1,577,792	)		(28,581,143	)
Net increase (decrease)		(1,032,295	)		($12,215,845	)		15,264,980		$	298,695,540
Class NAV shares
Sold		18,280,389		$	198,682,567			2,636,705		$	46,422,599
Distributions reinvested		13,491			143,548			1,332,590			25,679,018
Repurchased		(2,976,408	)		(32,778,348	)		(2,678,510	)		(47,554,360	)
Net increase (decrease)		15,317,472		$	166,047,767			1,290,785		$	24,547,257
Net increase (decrease)		14,285,177		$	153,831,922			16,555,765		$	323,242,797

 

Mid Cap Value Equity Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		12,800,227		$	80,582,484			2,057,746		$	22,700,078
Distributions reinvested		498,499			2,951,115			360,964			4,050,016
Repurchased		(521,042	)		(3,603,952	)		(4,530,658	)		(47,687,646	)
Net increase (decrease)		12,777,684		$	79,929,647			(2,111,948	)		($20,937,552	)

 

Mid Value Fund	Period ended 8-31-091
	Shares			Amount
Class NAV shares
Sold		24,395,377		$	259,753,505
Repurchased		(553,704	)		(6,846,322	)
Net increase (decrease)		23,841,673		$	252,907,183

 

1  Period from 1-2-09 (commencement of operations) to 8-31-09.

Natural Resources Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		2,207,942		$	36,500,607			2,062,714		$	87,283,264
Distributions reinvested		2,086,777			29,110,537			868,598			33,701,605
Repurchased		(1,288,566	)		(24,276,561	)		(679,864	)		(25,920,216	)
Net increase (decrease)		3,006,153		$	41,334,583			2,251,448		$	95,064,653
Class NAV shares
Sold		12,644,849		$	187,071,901			3,690,294		$	140,859,218
Distributions reinvested		6,725,298			93,212,628			4,588,884			177,268,607
Repurchased		(3,479,311	)		(61,627,547	)		(11,259,043	)		(453,278,620	)
Net increase (decrease)		15,890,836		$	218,656,982			(2,979,865	)		($135,150,795	)
Net increase (decrease)		18,896,989		$	259,991,565			(728,417	)		($40,086,142	)

 

Real Estate Equity Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		30,120,551		$	125,777,784			6,133,942		$	54,290,884
Distributions reinvested		1,459,051			7,003,443			3,482,936			30,510,521
Repurchased		(23,628,488	)		(117,665,680	)		(2,090,951	)		(18,247,879	)
Net increase (decrease)		7,951,114		$	15,115,547			7,525,927		$	66,553,526

 

Real Estate Securities Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		1,716,912		$	12,760,497			888,010		$	12,848,527
Distributions reinvested		366,648			2,881,857			1,568,067			22,062,707
Repurchased		(1,731,303	)		(13,321,529	)		(2,322,819	)		(34,064,430	)
Net increase (decrease)		352,257		$	2,320,825			133,258		$	846,804

 

486

FUND SHARE TRANSACTIONS, CONTINUED

Real Return Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		2,359,564		$	28,706,140			2,631,490		$	37,196,669
Distributions reinvested		639,430			6,919,597			94,211			1,297,783
Repurchased		(1,344,527	)		(15,947,022	)		(883,016	)		(12,321,926	)
Net increase (decrease)		1,654,467		$	19,678,715			1,842,685		$	26,172,526
Class NAV shares
Sold		36,720,066		$	425,088,369			12,324,983		$	171,406,847
Distributions reinvested		10,239,788			109,820,891			3,275,848			44,378,716
Repurchased		(17,016,392	)		(192,360,342	)		(29,962,600	)		(422,056,008	)
Net increase (decrease)		29,943,462		$	342,548,918			(14,361,769	)		($206,270,445	)
Net increase (decrease)		31,597,929		$	362,227,633			(12,519,084	)		($180,097,919	)

 

Short Term Government Income Fund	Period ended 8-31-091
	Shares			Amount
Class NAV shares
Sold		2,554,945		$	25,657,086
Repurchased		(110,067	)		(1,105,072	)
Net increase (decrease)		2,444,878		$	24,552,014

 

1  Period from 1-2-09 (commencement of operations) to 8-31-09.

Small Cap Growth Fund	Period ended 8-31-091
	Shares			Amount
Class NAV shares
Sold		17,421,171		$	133,757,170
Repurchased		(2,886,232	)		(23,076,750	)
Net increase (decrease)		14,534,939		$	110,680,420

 

1  Period from 9-10-08 (commencement of operations) to 8-31-09.

Small Cap Index Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		8,174,345		$	65,808,763			7,281,913		$	95,271,856
Distributions reinvested		405,796			3,355,933			1,093,047			14,635,895
Repurchased		(8,098,784	)		(71,823,966	)		(3,949,810	)		(55,734,594	)
Net increase (decrease)		481,357			($2,659,270	)		4,425,150		$	54,173,157

 

Small Cap Opportunities Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		2,004,641		$	23,966,196			125,630		$	2,625,148
Distributions reinvested		53,884			644,449			25,432			564,583
Repurchased		(449,346	)		(5,822,702	)		(275,966	)		(5,831,206	)
Net increase (decrease)		1,609,179		$	18,787,943			(124,904	)		($2,641,475	)
Class NAV shares
Sold		111,174		$	1,077,241			1,169,243		$	25,651,323
Distributions reinvested		97,175			1,156,381			159,361			3,521,870
Repurchased		(1,815,298	)		(23,774,397	)		(4,459,806	)		(91,274,688	)
Net increase (decrease)		(1,606,949	)		($21,540,775	)		(3,131,202	)		($62,101,495	)
Net increase (decrease)		2,230			($2,752,832	)		(3,256,106	)		($64,742,970	)

 

Small Cap Value Fund	Period ended 8-31-091
	Shares			Amount
Class NAV shares
Sold		6,557,463		$	70,234,361
Repurchased		(206,447	)		(2,460,334	)
Net increase (decrease)		6,351,016		$	67,774,027

 

1  Period from 12-16-08 (commencement of operations) to 8-31-09.

Small Company Growth Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		4,392,529		$	35,761,578			1,922,115		$	23,486,340
Distributions reinvested		—			—			392,397			5,101,160
Repurchased		(5,683,860	)		(48,300,649	)		(4,108,566	)		(48,292,869	)
Net increase (decrease)		(1,291,331	)		($12,539,071	)		(1,794,054	)		($19,705,369	)

 

487

FUND SHARE TRANSACTIONS, CONTINUED

Small Company Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		507,097		$	8,989,437			425,108		$	10,367,054
Distributions reinvested		158,222			2,604,338			255,329			6,117,691
Repurchased		(897,136	)		(15,693,348	)		(897,829	)		(21,630,872	)
Net increase (decrease)		(231,817	)		($4,099,573	)		(217,392	)		($5,146,127	)
Class NAV shares
Sold		3,663,715		$	55,972,859			5,278,186		$	129,413,982
Distributions reinvested		541,021			8,894,391			666,813			15,956,842
Repurchased		(7,697,335	)		(133,089,097	)		(1,513,362	)		(34,661,177	)
Net increase (decrease)		(3,492,599	)		($68,221,847	)		4,431,637		$	110,709,647
Net increase (decrease)		(3,724,416	)		($72,321,420	)		4,214,245		$	105,563,520

 

Smaller Company Growth Fund	Period ended 8-31-091
	Shares			Amount
Class NAV shares
Sold		16,546,006		$	153,592,008
Repurchased		(1,273,226	)		(12,489,589	)
Net increase (decrease)		15,272,780		$	141,102,419

 

1  Period from 10-7-08 (commencement of operations) to 8-31-09.

Spectrum Income Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		9,757,985		$	89,449,602			13,273,163		$	138,241,427
Distributions reinvested		6,416,463			58,098,237			6,049,043			62,579,710
Repurchased		(31,631,473	)		(279,477,968	)		(6,925,199	)		(71,834,426	)
Net increase (decrease)		(15,457,025	)		($131,930,129	)		12,397,007		$	128,986,711

 

Strategic Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		835,593		$	7,764,854			556,950		$	6,212,997
Distributions reinvested		223,355			2,069,660			231,353			2,551,211
Repurchased		(871,323	)		(8,048,531	)		(1,014,889	)		(11,331,727	)
Net increase (decrease)		187,625		$	1,785,983			(226,586	)		($2,567,519	)
Class NAV shares
Sold		9,544,418		$	88,849,831			6,810,526		$	75,735,385
Distributions reinvested		2,641,490			24,442,301			2,482,165			27,235,607
Repurchased		(12,564,112	)		(114,104,289	)		(1,097,763	)		(12,219,494	)
Net increase (decrease)		(378,204	)		($812,157	)		8,194,928		$	90,751,498
Net increase (decrease)		(190,579	)	$	973,826			7,968,342		$	88,183,979

 

Strategic Income Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		9,406,740		$	80,801,442			6,056,951		$	62,238,941
Distributions reinvested		5,963,797			50,543,103			1,759,699			17,879,553
Repurchased		(15,435,882	)		(131,937,822	)		(3,586,424	)		(36,888,368	)
Net increase (decrease)		(65,345	)		($593,277	)		4,230,226		$	43,230,126

 

Total Bond Market Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		48,579,397		$	478,866,200			754,386		$	7,594,078
Distributions reinvested		1,162,665			11,789,910			268,665			2,693,946
Repurchased		(12,796,726	)		(130,405,066	)		(447,122	)		(4,518,245	)
Net increase (decrease)		36,945,336		$	360,251,044			575,929		$	5,769,779

 

Total Return Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		5,014,687		$	66,769,458			2,779,974		$	39,581,279
Distributions reinvested		1,574,743			19,982,330			509,528			7,109,493
Repurchased		(1,252,977	)		(16,611,061	)		(1,094,830	)		(15,460,119	)
Net increase (decrease)		5,336,453		$	70,140,727			2,194,672		$	31,230,653
Class NAV shares
Sold		26,780,172		$	354,828,065			32,951,371		$	469,282,831
Distributions reinvested		12,366,160			156,858,560			6,233,014			86,736,804
Repurchased		(47,873,903	)		(636,991,197	)		(21,661,987	)		(305,257,691	)
Net increase (decrease)		(8,727,571	)		($125,304,572	)		17,522,398		$	250,761,944
Net increase (decrease)		(3,391,118	)		($55,163,845	)		19,717,070		$	281,992,597

 

488

FUND SHARE TRANSACTIONS, CONTINUED

U.S. Government Securities Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		1,122,209		$	13,618,577			702,490		$	9,340,868
Distributions reinvested		422,951			4,895,470			137,722			1,815,027
Repurchased		(877,749	)		(10,402,817	)		(838,128	)		(11,053,093	)
Net increase (decrease)		667,411		$	8,111,230			2,084		$	102,802
Class NAV shares
Sold		607,780		$	7,297,301			3,027,126		$	39,911,495
Distributions reinvested		1,006,604			11,656,112			501,472			6,587,552
Repurchased		(6,474,865	)		(79,626,185	)		(2,392,604	)		(32,368,008	)
Net increase (decrease)		(4,860,481	)		($60,672,772	)		1,135,994		$	14,131,039
Net increase (decrease)		(4,193,070	)		($52,561,542	)		1,138,078		$	14,233,841

 

U.S. High Yield Bond Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class 1 shares
Sold		2,596,044		$	26,955,307			297,885		$	3,688,570
Distributions reinvested		118,287			1,205,635			28,885			358,026
Repurchased		(258,865	)		(2,762,895	)		(195,305	)		(2,441,024	)
Net increase (decrease)		2,455,466		$	25,398,047			131,465		$	1,605,572
Class NAV shares
Sold		26,249,361		$	279,241,229			11,247,562		$	139,912,495
Distributions reinvested		4,356,344			43,524,775			2,619,456			32,452,809
Repurchased		(10,639,879	)		(101,445,679	)		(1,039,574	)		(12,566,762	)
Net increase (decrease)		19,965,826		$	221,320,325			12,827,444		$	159,798,542
Net increase (decrease)		22,421,292		$	246,718,372			12,958,909		$	161,404,114

 

U.S. Multi Sector Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		37,435,191		$	282,671,384			22,493,175		$	234,251,665
Distributions reinvested		1,871,614			14,280,412			6,562,310			71,135,437
Repurchased		(27,681,795	)		(215,379,965	)		(70,277,801	)		(703,950,476	)
Net increase (decrease)		11,625,010		$	81,571,831			(41,222,316	)		($398,563,374	)

 

Value Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		13,649,139		$	90,460,239			1,805,557		$	18,416,383
Distributions reinvested		37,588			228,535			90,767			966,663
Repurchased		(685,495	)		(4,544,277	)		(399,154	)		(4,683,624	)
Net increase (decrease)		13,001,232		$	86,144,497			1,497,170		$	14,699,422

 

Value & Restructuring Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		25,153,760		$	177,939,059			18,834,284		$	235,755,849
Distributions reinvested		833,670			5,685,628			573,768			7,516,364
Repurchased		(14,265,751	)		(107,513,036	)		(2,585,605	)		(33,492,448	)
Net increase (decrease)		11,721,679		$	76,111,651			16,822,447		$	209,779,765

 

Vista Fund	Year ended 8-31-09						Year ended 8-31-08
	Shares			Amount			Shares			Amount
Class NAV shares
Sold		23,309,641		$	149,259,434			723,978		$	9,389,356
Distributions reinvested		2,359,120			14,296,268			856,933			12,751,169
Repurchased		(1,622,301	)		(10,379,836	)		(4,312,417	)		(58,470,375	)
Net increase (decrease)		24,046,460		$	153,175,866			(2,731,506	)		($36,329,850	)

 

9.  INVESTMENT BY AFFILIATED FUNDS Certain investors in the Funds are affiliated funds and are managed by the Adviser and its affiliates. The affiliated funds do not invest in the Funds for the purpose of exercising management or control; however, this investment may represent a significant portion of each Fund’s net assets. For the year ended August 31, 2009, the following Funds had an affiliate fund ownership concentration of 5% or more of the Funds’ net assets:

Fund		Affiliate Concentration
Active Bond Fund			94.2	%
All Cap Core Fund			100.0	%
All Cap Value Fund			76.0	%
Alpha Opportunities Fund			100.0	%
Blue Chip Growth Fund			89.0	%
Capital Appreciation Fund			82.7	%
Core Bond Fund			97.5	%
Emerging Markets Value Fund			96.8	%
Equity-Income Fund			82.3	%
Fundamental Value Fund			88.6	%
Global Bond Fund			90.7	%
Global Real Estate Fund			100.0	%
High Income Fund			100.0	%
High Yield Fund			93.9	%
Index 500 Fund			100.0	%
International Equity Index Fund			100.0	%
International Opportunities Fund	��		95.2	%
International Small Cap Fund			52.3	%

489

INVESTMENT BY AFFILIATED FUNDS, CONTINUED

Fund	Affiliate Concentration
International Small Company Fund		100.0	%
International Value Fund		65.7	%
Investment Quality Bond Fund		65.7	%
Large Cap Fund		90.7	%
Large Cap Value Fund		83.7	%
Mid Cap Index Fund		100.0	%
Mid Cap Stock Fund		62.6	%
Mid Cap Value Equity Fund		100.0	%
Mid Value Fund		99.9	%
Natural Resources Fund		78.9	%
Real Estate Equity Fund		100.0	%
Real Return Bond Fund		94.6	%
Short term Government Income Fund		99.5	%
Small Cap Growth Fund		100.0	%
Small Cap Index Fund		100.0	%
Small Cap Opportunities Fund		54.5	%
Small Cap Value Fund		100.0	%
Small Company Growth Fund		100.0	%
Small Company Value Fund		72.3	%
Smaller Company Growth Fund		100.0	%
Spectrum Income Fund		100.0	%
Strategic Bond Fund		92.0	%
Strategic Income Fund		100.0	%
Total Bond Market Fund		99.9	%
Total Return Fund		70.8	%
U.S. Government Securities Fund		66.6	%
U.S. High Yield Bond Fund		95.5	%
U.S. Multi Sector Fund		99.9	%
Value Fund		96.9	%
Value & Restructuring Fund		99.9	%
Vista Fund		100.0	%

 

10.  INVESTMENT IN AFFILIATED UNDERLYING FUNDS Alternative Asset Allocation Fund 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, 2009, Alternative Asset Allocation Fund did not hold 5% or more of any of the underlying funds’ net assets.

11.  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, 2009:

	PURCHASES				SALES AND MATURITIES
FUND	U.S. GOVERNMENT		OTHER ISSUERS		U.S. GOVERNMENT		OTHER ISSUERS
Active Bond Fund	$	248,826,975	$	222,575,686	$	338,403,628	$	133,531,572
All Cap Core Fund		7,936,758		723,731,050		—		768,243,383
All Cap Growth Fund		—		149,307,563		—		151,449,932
All Cap Value Fund		—		406,411,254		—		141,538,998
Alpha Opportunities Fund		—		1,477,461,259		—		856,499,382
Alternative Asset Allocation Fund		—		1,011,922		—		13,226
American Diversified Growth & Income Portfolio		—		9,813,521		—		283,682
American Fundamental Holdings Portfolio		—		6,779,594		—		535,587
American Global Diversification Portfolio		—		6,385,741		—		327,556
Blue Chip Growth Fund		—		915,177,324		—		1,091,574,554
Capital Appreciation Fund		—		982,421,982		—		728,717,891
Core Bond Fund		1,501,101,220		192,954,637		1,415,467,915		151,555,592
Emerging Markets Value Fund		—		603,495,990		—		274,842,698
Emerging Small Company Fund		—		50,771,174		—		71,237,145
Equity-Income Fund		—		441,460,904		—		391,226,566
Fundamental Value Fund		849,966		649,501,514		850,000		442,539,270
Global Agribusiness Fund		—		3,659,255		—		1,698,828
Global Bond Fund		856,570,159		2,239,191,187		802,291,833		2,390,455,032
Global Infrastructure Fund		—		2,713,051		—		703,811
Global Real Estate Fund		—		517,489,793		—		659,798,691
Global Timber Fund		—		3,211,235		—		1,204,282
High Income Fund		—		294,788,241		—		231,312,445
High Yield Fund		—		812,507,326		—		1,177,934,614
Index 500 Fund		—		1,645,864,723		—		607,863,096
International Equity Index Fund		—		124,488,702		—		201,433,962
International Opportunities Fund		—		909,558,853		—		800,729,254
International Small Cap Fund		—		128,596,040		—		144,746,310
International Small Company Fund		—		61,808,768		—		237,167,061
International Value Fund		—		457,767,195		—		477,782,062
Investment Quality Bond Fund		29,463,764		25,755,430		47,543,067		20,574,531
Large Cap Fund		—		239,957,689		—		300,009,903
Large Cap Value Fund		—		890,319,775		—		887,314,074
Mid Cap Index Fund		—		394,250,791		—		123,339,483
Mid Cap Stock Fund		—		1,165,027,624		—		917,714,536
Mid Cap Value Equity Fund		—		140,852,890		—		45,782,994
Mid Value Fund		—		284,230,593		—		41,251,794
Natural Resources Fund		—		502,531,873		—		284,096,382

490

PURCHASES AND SALES OF SECURITIES, CONTINUED

	PURCHASES				SALES AND MATURITIES
FUND	U.S. GOVERNMENT		OTHER ISSUERS		U.S. GOVERNMENT		OTHER ISSUERS
Real Estate Equity Fund		—		262,464,933		—		177,901,158
Real Estate Securities Fund		—		111,084,035		—		93,269,987
Real Return Bond Fund		7,187,015,022		621,332,517		7,486,036,776		321,109,997
Short Term Government Income Fund		51,091,384		524,860		27,182,120		—
Small Cap Growth Fund		—		319,641,885		—		207,068,518
Small Cap Index Fund		—		116,849,991		—		105,770,723
Small Cap Opportunities Fund		—		114,650,336		—		105,136,573
Small Cap Value Fund		—		68,619,775		—		2,894,037
Small Company Growth Fund		—		111,494,469		—		97,187,290
Small Company Value Fund		—		157,223,988		—		191,504,479
Smaller Company Growth Fund		—		249,621,744		—		103,600,005
Spectrum Income Fund		242,835,744		389,493,804		260,942,417		380,981,155
Strategic Bond Fund		294,746,815		115,240,540		215,438,279		100,537,192
Strategic Income Fund		19,556,479		231,240,829		74,743,596		131,067,906
Total Bond Market Fund		541,558,844		117,825,143		283,519,886		13,721,306
Total Return Fund		5,647,517,427		960,998,010		5,338,368,271		965,310,078
U.S. Government Securities Fund		151,918,751		17,901,336		149,770,417		25,971,505
U.S. High Yield Bond Fund		9,636,745		445,290,611		5,351,732		234,733,787
U.S. Multi Sector Fund		—		570,852,049		—		466,824,421
Value Fund		999,994		122,983,482		1,000,000		33,224,970
Value & Restructuring Fund		—		312,803,805		—		176,442,866
Vista Fund		—		390,777,603		—		239,916,871

 

491

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) which are part of John Hancock Funds II (the “Trust”) at August 31, 2009, 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, 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, 2009 by correspondence with the custodian, transfer agents, and brokers, and the application of alternative auditing procedures where securities purchased confirmations had not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
October 23, 2009

492

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 Funds, if any, paid during its taxable year ended August 31, 2009.

LONG TERM CAPITAL GAINS The Funds below have designated the following amounts as capital gain dividends paid during the year.

Fund	Capital Gains
Active Bond Fund		—
All Cap Core Fund	$	41,865
All Cap Growth Fund		991,460
All Cap Value Fund		2,409,045
Alpha Opportunities Fund		—
Alternative Asset Allocation Fund		—
American Diversified Growth & Income Portfolio		—
American Fundamental Holdings Portfolio		—
American Global Diversification Portfolio		—
Blue Chip Growth Fund		—
Capital Appreciation Fund		—
Core Bond Fund		—
Emerging Markets Value Fund		—
Emerging Small Company Fund		—
Equity-Income Fund		57,190,163
Fundamental Value Fund		—
Global Agribusiness Fund		—
Global Bond Fund		1,362,975
Global Infrastructure Fund		—
Global Real Estate Fund		—
Global Timber Fund		—
High Income Fund		—
High Yield Fund		—
Index 500 Fund		1,984
International Equity Index Fund		981,866
International Opportunities Fund		—
International Small Cap Fund		30,285,300
International Small Company Fund		6,624,270
International Value Fund		31,822,867
Investment Quality Bond Fund		—
Large Cap Fund		—
Large Cap Value Fund		—
Mid Cap Index Fund		5,520,714
Mid Cap Stock Fund		—
Mid Cap Value Equity Fund		2,028,270
Mid Value Fund		—
Natural Resources Fund		113,542,261
Real Estate Equity Fund		322,418
Real Estate Securities Fund		761,425
Real Return Bond Fund		5,659,800
Short Term Government Income Fund		—
Small Cap Growth Fund		—
Small Cap Index Fund		2,170,170
Small Cap Opportunities Fund		—
Small Cap Value Fund		—
Small Company Growth Fund		—
Small Company Value Fund		8,220,270
Smaller Company Growth Fund		—
Spectrum Income Fund		5,857,978
Strategic Bond Fund		—
Strategic Income Fund		—
Total Bond Market Fund		—
Total Return Fund		28,166,221
U.S. Government Securities Fund		3,296,755
U.S. High Yield Bond Fund		—
U.S. Multi Sector Fund		—
Value Fund		—
Value & Restructuring Fund		—
Vista Fund		14,136,624

 

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 Funds’ fiscal 2009 ordinary income dividends that qualifies for the corporate dividend received deduction is set forth below.

Fund	Dividend Received Deduction
Active Bond Fund		0.00	%
All Cap Core Fund		100.00	%
All Cap Growth Fund		100.00	%
All Cap Value Fund		100.00	%
Alpha Opportunities Fund		8.88	%
Alternative Asset Allocation Fund		0.00	%
American Diversified Growth & Income Portfolio		46.80	%
American Fundamental Holdings Portfolio		43.03	%
American Global Diversification Portfolio		16.07	%
Blue Chip Growth Fund		100.00	%
Capital Appreciation Fund		100.00	%
Core Bond Fund		0.00	%
Emerging Markets Value Fund		0.00	%
Emerging Small Company Fund		0.00	%
Equity-Income Fund		89.39	%
Fundamental Value Fund		100.00	%
Global Agribusiness Fund		29.72	%
Global Bond Fund		0.00	%
Global Infrastructure Fund		50.98	%
Global Real Estate Fund		0.00	%
Global Timber Fund		100.00	%
High Income Fund		6.09	%
High Yield Fund		0.00	%
Index 500 Fund		100.00	%
International Equity Index Fund		1.72	%
International Opportunities Fund		0.00	%
International Small Cap Fund		1.73	%
International Small Company Fund		0.00	%
International Value Fund		0.00	%
Investment Quality Bond Fund		0.00	%
Large Cap Fund		91.85	%
Large Cap Value Fund		100.00	%
Mid Cap Index Fund		64.13	%
Mid Cap Stock Fund		100.00	%
Mid Cap Value Equity Fund		100.00	%
Mid Value Fund		0.00	%
Natural Resources Fund		34.31	%
Real Estate Equity Fund		1.04	%
Real Estate Securities Fund		0.00	%
Real Return Bond Fund		0.00	%

493

John Hancock Funds II
Federal Tax Information (Unaudited)

Fund	Dividend Received Deduction
Short Term Government Income Fund		0.00	%
Small Cap Growth Fund		0.00	%
Small Cap Index Fund		60.98	%
Small Cap Opportunities Fund		67.01	%
Small Cap Value Fund		0.00	%
Small Company Growth Fund		0.00	%
Small Company Value Fund		100.00	%
Smaller Company Growth Fund		0.00	%
Spectrum Income Fund		9.74	%
Strategic Bond Fund		0.00	%
Strategic Income Fund		0.00	%
Total Bond Market Fund		0.00	%
Total Return Fund		0.00	%
U.S. Government Securities Fund		0.00	%
U.S. High Yield Bond Fund		0.00	%
U.S. Multi Sector Fund		100.00	%
Value Fund		73.39	%
Value & Restructuring Fund		100.00	%
Vista Fund		0.00	%

 

FOREIGN TAX CREDITS As of August 31, 2009, the Funds below have designated the following amounts as foreign tax credits, which represent taxes paid on income derived from foreign sources.

Fund	Foreign Sourced Income		Foreign Tax Credit
Emerging Markets Value Fund	$	16,942,907	$	1,589,536
Global Infrastructure Fund		59,952		5,519
Global Real Estate Fund		17,259,751		596,403
International Equity Index Fund		8,119,380		840,240
International Opportunities Fund		9,234,400		864,136
International Small Cap Fund		6,043,075		572,091
International Small Company Fund		4,636,859		424,940
International Value Fund		16,498,164		2,027,911

 

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 2009.

Shareholders will be mailed a 2009 Form 1099-DIV in January 2010. This will reflect the total of all distributions that are taxable for calendar year 2009.

494

John Hancock Funds II
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 except those noted below.

The Advisory Agreement and Subadvisory Agreements for the following portfolios were not considered for renewal at this time since each of these Funds recently commenced operations:

Frontier Capital Management Company
    Smaller Company Growth Fund

MFC Global Investment Management (U.S.A.) Limited
    Alternative Asset Allocation Fund
    John Hancock Global Agribusiness Fund
    John Hancock Global Infrastructure Fund
    John Hancock Global Timber Fund
    Smaller Company Growth Fund
    Short Term Government Income Fund

Perimeter Capital Management LLC
    Smaller Company Growth Fund

T. Rowe Price Associates, Inc.
    Mid Value Fund

Wellington Management Company, LLP
    Alpha Opportunities Fund

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 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”).

Approval of Advisory Agreement

At its meeting on May 28-29, 2009, 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 arms-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,

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(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

(e)  considered that the Adviser should be entitled to earn a reasonable level of profits in exchange for the level of services it provide 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’ anticipated level of profitability 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 the American Diversified Growth & Income Portfolio, the American Fundamental Holdings Portfolio, the American Global Diversification Portfolio and the Alternative Asset Allocation 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 28-29, 2009, 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 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 arms-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 Adviser and Western Asset Management Company. See (8) below for information relating to the business arrangement between the Adviser and Dimensional Fund Advisors.

(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, subject to its fiduciary duties as an investment adviser to each portfolio and its shareholders, it will seek to maintain at least $4 billion of assets in JHT and JHF III funds subadvised by GMO during this 5 year period. Neither JHT nor JHF II is a party to any of these arrangements, and they are not binding upon JHT, JHF II, the portfolios subadvised by GMO or the Board of Trustees of JHT/JHF II. However, such arrangement presents certain conflicts of interest since the Adviser may have incentive to allocate Lifestyle and Lifecycle assets to GMO subadvised funds in order to comply with this requirement.

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)   The Adviser has entered into an agreement with Western Asset Management Company (“WAMCO”) regarding the Floating Rate Income Fund in which WAMCO agrees that it will not to serve as investment adviser (including subadviser) to another investment company that is sold to retail investors and is managed in a style similar to the Floating Rate Income Fund for a period of five years and the Adviser agrees that it will develop a program for the marketing of the fund. In the event WAMCO should advise such an investment company, the agreement would entitle the Adviser to $2 million in liquidated damages due to the fact that the Adviser and the distributor to the Floating Rate Income Fund will make unreimbursed expenditures in the organization

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and ongoing promotion of the fund. However, WAMCO is not required to pay the Adviser such liquidated damages if the Fund does not reach certain asset levels (which range from $500 million on the first anniversary of the Fund’s commencement to $2 billion on the fourth anniversary of the Fund’s commencement) assuming certain performance requirements are met. The agreement also provides that if WAMCO is terminated as subadviser to the fund, then WAMCO is released from any obligation to pay the Adviser such liquidated damages. Therefore, the Adviser has a financial interest in not having the Board terminate WAMCO as subadviser to the fund for a five year period.

(8) In the case of the Disciplined Diversification Trust, a series of John Hancock Trust, the Adviser has entered into an agreement with Dimensional Fund Advisers (“DFA”) in which DFA agrees that it will not for a period of five years serve as investment adviser (including subadviser) or distributor to another mutual fund that is sold to commission-based, broker-sold variable annuity products and that is managed in a style similar to the Disciplined Diversification Trust. (This provision does not apply to DFA’s Financial Advisor business and only applies to funds sold in John Hancock variable insurance product distribution channels.) In the event that DFA should advise such a fund, the agreement would entitle the Adviser to $1 million in liquidated damages during the first three years following commencement of fund operations and $500,000 for the following two years due to the fact that the Adviser and the distributor to the Disciplined Diversification Trust will make unreimbursed expenditures in the organization and ongoing promotion of the fund. However, DFA is not required to pay the Adviser such liquidated damages if the Fund does not reach certain asset levels (which range from $150 million on the first anniversary of the Fund’s commencement to $450 million on the fourth anniversary of the Fund’s commencement) assuming certain performance requirements are met. The agreement also provides that if DFA is terminated as subadviser to the fund, then DFA is released from any obligation to pay the Adviser such liquidated damages. Therefore, the Adviser has a financial interest in not having the Board terminate DFA as subadviser to the fund for a five year period.

DFA has also agreed that if DFA or one of its affiliates advises, underwrites or distributes any commission-paid, broker-sold, open-end U.S. registered investment company offering Class A, B or C shares or any closed-end U.S. registered investment company that is classified in the Morningstar Moderate Allocation category, and that has an investment objective and policies substantially similar to those of the Fund, then the Adviser will be offered a similar opportunity to reach terms with DFA to manage and distribute a similar fund. (This provision does not apply to activities and services through DFA Financial Advisors business and in particular funds DFA advises for AIG, Genworth Financial and AEGON, and their respective subsidiaries.)

In addition, in the case of the American Diversified Growth & Income Portfolio, the American Fundamental Holdings Portfolio, the American Global Diversification Portfolio and the Alternative Asset Allocation Fund (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.

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John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Active Bond Fund (Declaration Management & Research LLC) (MFC Global Investment Management (U.S.), LLC)	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund underperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 recent conditions of the credit markets. The Board also noted the Fund’s past performance history prior to the current period of underperformance. The Board further noted that performance has improved year-to-date (through May 22, 2009). The Board requested that management continue to closely monitor the Fund’s performance. The Board took into account management’s discussion of the Fund’s expenses, including the advisory/sub-advisory fee structure.
All Cap Core Fund (Deutsche Asset Management, Inc.)	The Fund slightly underperformed the benchmark index over the one-year period. The Fund slightly underperformed the Lipper Category Average over the one-year period.	Subadvisory fees for this Fund are modestly higher than the peer group median. Net management 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 quantitative investment style and current market conditions. The Board also took into account the subadviser’s consistent overall performance record with the comparable JHT Trust. The Board took into account management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure.

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John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
All Cap Growth Fund (Invesco Aim Capital Management, Inc.)	The Fund modestly underperformed the benchmark index over the one-year period and underperformed over the three-year period. The Fund slightly underperformed the Lipper Category Average over the one-year period, and modestly underperformed over the three-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 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 also considered 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 requested that management monitor this Fund closely due to the change in the portfolio manager and the Fund’s underperformance.
All Cap Value Fund (Lord, Abbett & Co. LLC)	The Fund outperformed the benchmark index over the one- and three- year periods. The Fund outperformed the Lipper Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 took note of the expenses of the Fund in the context of its performance.
American Diversified Growth & Income Portfolio (MFC Global Investment Management (U.S.A.) Limited)	See Comments	Subadvisory fees for this Portfolio are lower than the peer group median. Net management fees for this Portfolio are lower than the peer group median. Total expenses for this Portfolio are lower than the peer group median.	The Board noted that the Portfolio recently commenced operations and took into account the relatively limited performance history of the Portfolio. The Board noted that the Portfolio is subject to a voluntary fee waiver which reduces certain expenses of the Portfolio.
American Fundamental Holdings Portfolio (MFC Global Investment Management (U.S.A.) Limited)	See Comments	Subadvisory fees for this Portfolio are lower than the peer group median. Net management fees for this Portfolio are lower than the peer group median. Total expenses for this Portfolio are lower than the peer group median.	The Board noted that the Portfolio recently commenced operations and took into account the relatively limited performance history of the Portfolio. The Board noted that the Portfolio is subject to a voluntary fee waiver which reduces certain expenses of the Portfolio.

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John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
American Global Diversification Portfolio (MFC Global Investment Management (U.S.A.) Limited)	See Comments	Subadvisory fees for this Portfolio are equal to the peer group median. Net management fees for this Portfolio are lower than the peer group median. Total expenses for this Portfolio are lower than the peer group median.	The Board noted that the Portfolio recently commenced operations and took into account the relatively limited performance history of the Portfolio. The Board noted that the Portfolio is subject to a voluntary fee waiver which reduces certain expenses of the Portfolio.
Blue Chip Growth Fund (T. Rowe Price Associates, Inc.)	The Fund slightly outperformed the benchmark index over the one-year, and modestly outperformed over the three-year period. The Fund slightly outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 management fees of the Fund are modestly higher than the peer group median, the overall performance of the Fund has been favorable and the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Capital Appreciation Fund (Jennison Associates LLC)	The Fund modestly outperformed the benchmark index over the one year period and slightly outperformed over the three-year period. The Fund modestly outperformed the Morningstar Category Average over one- and three-year periods.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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.
Core Bond Fund (Wells Capital Management, Incorporated)	The Fund slightly outperformed the benchmark index over the one-year period and slightly underperformed over the three-year period. The Fund outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 took into account management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure.
Emerging Markets Value Fund (Dimensional Fund Advisors)	The Fund slightly underperformed the benchmark index over the one-year period. The Fund slightly outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Net management 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 performance and fees of the Fundt were acceptable.

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Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Emerging Small Company Fund (RCM Capital Management LLC)	The Fund slightly underperformed the benchmark index over the one-year period and underperformed over the three-year period. The Fund slightly underperformed the Morningstar Category Average over the one-year period and modestly underperformed over the three-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 underperformed its benchmark index and Morningstar Category Average for the one- and three year- periods and requested management to present the Board with proposals to remedy the underperformance which the Board will consider acting at its next meeting.
Equity-Income Fund (T. Rowe Price Associates, Inc.)	The Fund slightly outperformed the benchmark index over the one- and three-year periods. The Fund slightly outperformed the Morningstar Category Average over the three-year period, and slightly underperformed over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 management fees of the Fund are modestly higher than the peer group median, the overall performance of the Fund has been favorable and 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 modestly underperformed the benchmark index over the one- and three-year periods. The Fund modestly underperformed the Morningstar Category Average over the one-year and slightly underperformed over the three-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 Fund underperformed its benchmark index and Morningstar Category Average for the one-and three- year periods, a substantial portion of the underperformance is attributable to poor performance during 2008 when the performance of the securities markets was extremely poor. The board also noted that the Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming its benchmark index and Morningstar Category Average. The Board also noted that the management fee of the Fund was modestly higher than the peer group median and the total expenses of the Fund were slightly higher than the peer group median.

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John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Global Bond Fund (Pacific Investment Management Company)	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund underperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are equal to the peer group median. Net management fees for this Fund are equal to the peer group median. Total expenses for this Fund are equal to the peer group median.	The Board noted that although the Fund underperformed its benchmark index and Morningstar Category Average for the one-and three- year periods, much of the underperformance is attributable to poor performance during 2008 when the performance of the securities markets was extremely poor and the Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming its Morningstar Category Average. The Board requested that management continue to closely monitor the Trust.
Global Real Estate Fund (Deutsche Asset Management, Inc.*) *RREEF America L.L.C. serves as sub-subadviser	The Fund slightly outperformed the benchmark index over the one-year period. The Fund slightly outperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 Fund commenced operations April 28, 2006, and has limited performance. In reviewing the Fund, the Board considered this limited performance. The Board also took into account management’s discussion of the factors that contributed to the Fund’s performance, including the real estate market conditions during this 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 funds with varying geographical exposures. The Board also noted management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure.

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Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
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 modestly lower than the peer group median. Net management 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 and Morningstar Category Average for the one- year period, the performance of the Fund can be volatile due to the investment style of the portfolio manager but that the Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming the Morningstar Category Average. The Board noted that management will continue to closely monitor the Trust.
High Yield Fund (Western Asset Management Company*) *Western Asset Management Company Limited serves as sub-subadviser	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund underperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 management’s discussion of the factors that contributed to the Fund’s performance, including the subadviser’s investment style and recent credit market conditions. The Board noted that performance has improved year-to-date. The Board also noted that Western Asset Management Company assumed responsibility of the Trust in April 2006 and that performance prior to that date reflects that of the previous subadviser. The Board requested that management continue to closely monitor performance.
Index 500 Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund slightly underperformed the benchmark index over the one, three, and five year periods. The Fund slightly outperformed the Morningstar Category Average over the three-year period and slightly underperformed over the one-and five-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 is within 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.

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John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
International Equity Index Fund (SSgA Funds Management, Inc.)	The Fund slightly underperformed the benchmark index over the one- and three-year periods. The Fund slightly outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are modestly lower than the peer group median. Net management fees for this Fund are modestly lower than the peer group median. Total expenses for this Fund are lower than the peer group median.	The Board took into account the narrow range among performance returns of the peer group. 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.
International Opportunities Fund (Marsico Capital Management, LLC)	The Fund slightly underperformed the benchmark index over the one- and three-year periods. The Fund slightly underperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management fees for this Fund are slightly 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 factors that contributed to the Fund’s performance, including the subadviser’s investment style and current market conditions. The Board also took into account the longer-term performance history of the subadviser’s comparably managed retail fund. The Board noted that performance has improved year-to-date (through May 22, 2009). The Board took into account management’s discussion of the Fund’s expenses.
International Small Cap Fund (Franklin Templeton Investments Corp.)	The Fund modestly underperformed the benchmark index over the one- and three year periods. The Fund slightly underperformed the Morningstar Category Average over the three-year period and modestly underperformed over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management fees for this Fund are equal to the peer group median. Total expenses for this Fund are slightly lower to 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. The Board requested that management continue to closely monitor the Fund’s performance.

504

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
International Small Company Fund (Dimensional Fund Advisors)	The Fund slightly outperformed the benchmark index over the one-year period. The Fund slightly underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 while the Fund slightly underperformed its Morningstar Category Average over the one year period, the Fund slightly outperformed its benchmark index over the one year period and the long term performance over the three- and five- year periods of a mutual fund managed in a similar style by Dimensional Fund Advisors has been favorable. The Board also noted that the Fund’s 2009 year to date performance (through May 22, 2009) was favorable.
International Value Fund (Templeton Investment Counsel, LLC*) *Templeton Global Advisors Limited serves as sub-subadviser	The Fund modestly outperformed the benchmark index over the three- year period, and slightly outperformed over the one-year period. The Fund modestly outperformed the Morningstar Category Average over the three-year period and slightly outperformed over the one-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Net management 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 that the Fund consistently outperformed the peer group and benchmark over the short and long term periods. The Board took into account management’s discussion of the Fund’s expenses. The Board also took note of the expenses in the context of the Fund’s overall performance.
Investment Quality Bond Fund (Wellington Management  Company, LLP)	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 the Fund’s outperformance relative to the peer group average over the one- and three-year periods. The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also took note of the expenses of the Fund in the context of its performance.
Large Cap Fund (UBS Global Asset Management (Americas) Inc.)	The Fund slightly underperformed the benchmark index over the one- year period and modestly underperformed over the three-year period. The Fund slightly underperformed the Morningstar Category Average over the one-year period and modestly underperformed over the three-year period.	Subadvisory fees for this Fund are modestly lower than the peer group median. Net management 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 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 ten-year period. The Board requested that management continue to closely monitor the Fund’s performance.

505

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Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Large Cap Value Fund (BlackRock Investment Management, LLC)	The Fund slightly outperformed the benchmark index over the one- and three-year periods. The Fund slightly underperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 took note of the expenses of the Fund in the context of its overall performance.
Mid Cap Index Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund slightly underperformed the benchmark index over the one- and three-year periods. The Fund slightly outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 is within expected tracking error guidelines gross of fees over all available time periods. The Board also noted relatively small range among returns within the Fund’s peer group.
Mid Cap Stock Fund (Wellington Management Company, LLP)	The Fund modestly outperformed the benchmark index over the three- year period and slightly outperformed over one-year period. The Fund modestly outperformed the Morningstar Category Average over the three-year period, and slightly underperformed over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also took note of the expenses of the Fund in the context of its overall performance.
Mid Cap Value Equity Fund (RiverSource Investments LLC)	The Fund slightly underperformed the benchmark index over the one year period. The Fund modestly underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 while the Fund underperformed its benchmark index and Morningstar Category Average over the one year period, the Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming its benchmark index and Morningstar Category Average. The Board noted that performance was good in 2007 and poor in 2008.

506

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Natural Resources Fund (Wellington Management Company, LLP)	The Fund slightly underperformed the benchmark index over the three- year period and modestly underperformed over the one-year period. The Fund modestly outperformed the Morningstar Category Average over the three-year period and slightly underperformed over the one-year period.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also took note of the expenses of the Fund in the context of its overall performance.
Real Estate Equity Fund (T. Rowe Price, Inc.)	The Fund slightly underperformed the benchmark index over the one-year period. The Fund slightly underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are slightly lower to the peer group median. Net management 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 while the Fund underperformed its benchmark index and Morningstar Category Average over the one year period, the long term performance over the five and ten year periods of a mutual fund managed in a similar style by T. Rowe Price has been favorable and the Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming its benchmark index and slightly underperforming its Morningstar Category. The Board also noted that the extreme down turn in the real estate market during 2008 contributed to the Fund’s poor performance during that year.
Real Estate Securities Fund (Deutsche Investment Management Americas, Inc.*) *RREEF America L.L.C. serves as sub-subadviser	The Fund slightly outperformed the benchmark index over the one- and three-year periods. The Fund slightly outperformed the Morningstar Category Average over the three-year period, and slightly underperformed over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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.	The Board took into account management’s discussion of the factors that contributed to the Fund’s more recent performance, including current market conditions and the subadviser’s investment style.

507

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Real Return Bond Fund (Pacific Investment Management Company)	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund outperformed the Morningstar Category Average over the three-year period and slightly underperformed over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Net management 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 Fund underperformed its benchmark index over the one and three year periods and its Morningstar Category Average over the one year period, a significant portion of the underperformance is attributable to poor performance during 2008 when the performance of the securities markets was extremely poor. The Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming its benchmark index and Morningstar Category Average.
Small Cap Value Fund (Wellington Management Company, LLP)	See Comments	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 the Fund recently commenced operations and took into account the relatively limited performance history of the Fund. The Board also took note of management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Small Cap Growth Fund (Wellington Management Company, LLP)	See Comments	Subadvisory fees for this Fund are higher than the peer group median. Net management 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 Fund commenced operations in September 2008. In reviewing the Fund, the Board took into account the Fund’s limited performance history, but noted the favorable longer-term track record of the subadviser’s comparable mutual fund. Also, the Board took into account management’s discussion of the Fund’s more recent performance. The Board also took note of management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure.
Small Cap Index Fund (MFC Global Investment Management (U.S.A.) Limited)	The Fund slightly underperformed the benchmark index over the one- and three-year periods. The Fund slightly outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are lower than the peer group median. Net management 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 is within 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.

508

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Small Cap Opportunities Fund (Invesco Aim Capital Management, Inc. and Dimensional Fund Advisors LP)	The Fund modestly underperformed the benchmark index over the one- year period and underperformed over the three-year period. The Fund modestly underperformed the Morningstar Category Average over the one-year period and underperformed over the three-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 the Fund’s long-term performance reflects the performance of the previous subadviser. The Board took into account the steps taken by management to address the Fund’s underperformance. Specifically, the Board noted that the previous subadviser was replaced by two new subadvisers during 2008 and considered the Fund’s performance since the implementation of the subadviser change. The Board took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board requested that management continue to closely monitor the Fund’s performance.
Small Company Growth Fund (Invesco Aim Capital Management, Inc.)	The Fund modestly outperformed the benchmark index over the three- year period, and slightly outperformed over the one-year period. The Fund outperformed the Morningstar Category Average over the three-year period, and slightly outperformed over the one-year period.	Subadvisory fees for this Fund are modestly higher than the peer group median. Net management 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 also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also took note of the expenses of the Fund in the context of its performance.
Small Company Value Fund (T. Rowe Price Associates, Inc.)	The Fund modestly outperformed the benchmark index over the three-year period, slightly outperformed over the one-year period. The Fund modestly outperformed the Morningstar Category Average over the three-year period, slightly outperformed over the one-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Net management 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 management fees of the Fund are modestly higher than the peer group median, the overall performance of the Fund has been favorable and the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.

509

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Spectrum Income Fund (T. Rowe Price Associates, Inc.)	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 although the management fees of the Fund are higher than the peer group median, the overall performance of the Fund has been favorable and the Fund is subject to a voluntary fee waiver which reduces certain expenses of the Fund.
Strategic Bond Fund (Western Asset Management Company*) *Western Asset Management Company Limited serves as sub-subadviser	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund modestly outperformed the Morningstar Category Average over the one-year period and underperformed over the three-year period.	Subadvisory fees for this Fund are slightly lower than the peer group median. Net management 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 took into account management’s discussion of the factors that contributed to the Trust’s performance, including the subadviser’s investment style and the holding of non-agency mortgage-backed securities. The Board took note of the expenses in the context of management’s overall discussion of these factors. Also, the Board noted that performance had improved modestly year-to-date. The Board also noted that Western Asset Management Company assumed responsibility of the Fund in April 2006 and that performance prior to that date reflects that of the previous subadviser. The Board requested that management continue to closely monitor performance. The Board took into account management’s discussion of the Fund’s expenses.

510

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
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 slightly higher to the peer group median. Net management 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 while the Fund underperformed its benchmark index over the one year period, the Fund outperformed the Morningstar Category Average during the same period. The Board noted that the subadviser’s investment style of purchasing securities in sectors that are not included in the benchmark index also contributed to the Fund underperforming its benchmark index. The Board noted that net management fees are higher than the peer group median and total expenses are modestly higher than the peer group median.
Total Bond Market Fund (Declaration Management & Research LLC)	The Fund slightly 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. Net management 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 management’s discussion of the Fund relative to the bond market. The Board took into account management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure and the relatively small size of the peer group.
Total Return Fund (Pacific Investment Management Company)	The Fund modestly underperformed the benchmark index over the three-year period, and underperformed over the one- year period. The Fund outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly lower than the peer group median. Net management 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 although the Fund underperformed its benchmark index over the one and three year periods, a significant portion of the underperformance is attributable to poor performance during 2008 when the performance of the securities markets was extremely poor. The Board noted that although the net management fees for the Fund are higher than the peer group median, the Fund’s 2009 year to date performance (through May 22, 2009) has been favorable with the Fund outperforming its benchmark index and Morningstar Category Average. The Board also noted that the Fund outperformed its Morningstar Category Average during the same one and three year periods.

511

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
U.S. Government Securities Fund (Western Asset Management Company)	The Fund outperformed the benchmark index over the one- and three-year periods. The Fund outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 factors that contributed to the Fund’s performance, including the effect of the subadviser’s investment style and the holding of non-agency mortgage-backed securities. The Board also noted that the year-to-date performance (through May 22, 2009) had improved. The Board requested that management continue to closely monitor performance.
U.S. High Yield Bond Fund (Wells Capital Management, Incorporated)	The Fund outperformed the benchmark index over the one- and three-year periods. The Fund outperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 and also took note of the fees in the context of the overall performance of the Fund.
U.S. Multi Sector Fund (Grantham, Mayo, Van Otterloo & Co., LLC)	The Fund outperformed the benchmark index over the one-year period and modestly outperformed over the three-year period. The Fund outperformed the Lipper Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 and also took note of the fees in the context of the overall performance of the Fund.
Value Fund (Morgan Stanley Investment Management Inc. (Van Kampen))	The Fund slightly outperformed the benchmark index over the one-year period. The Fund slightly underperformed the Morningstar Category Average over the one-year period.	Subadvisory fees for this Fund are lower than the peer group median. Net management fees for this Fund are modestly lower than the peer group median. Total expenses for this Fund are equal to the peer group median.	The Board noted that performance and fees of the Trust were acceptable.

512

John Hancock Funds II

Appendix A

PORTFOLIO (SUBADVISER)	Performance of Trust, as of March 31, 2009	Fees and Expenses	Other Comments
Value & Restructuring Fund (Columbia Management Advisors, LLC)	The Fund underperformed the benchmark index over the one- and three-year periods. The Fund underperformed the Morningstar Category Average over the one- and three-year periods.	Subadvisory fees for this Fund are slightly higher than the peer group median. Net management 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 the long term performance of a retail mutual fund managed in a similar style by Columbia. The Board also took into account the more recent performance of the Fund year-to-date. The Board took note of management’s discussion of the Fund’s expenses, including the advisory/subadvisory fee structure.
Vista Fund (American Century Investment Management, Inc.)	The Fund modestly outperformed the benchmark index over the three-year period and slightly underperformed over the one-year period. The Fund modestly outperformed the Morningstar Category Average over the three-year period and slightly underperformed over the one-year period.	Subadvisory fees for this Fund are equal to the peer group median. Net management 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 also took into account management’s discussion of the Fund’s expenses, including the advisory / subadvisory fee structure. The Board also took note of the expenses of the Fund in the context of its overall performance.

 

513

John Hancock Funds II

Trustees and Officers Information

This chart provides information about the Trustees and Officers of John Hancock Funds II 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 with the Trust1	Principal Occupation(s) and Other Directorships During Past Five Years
Charles L. Bardelis Born: 1941	Trustee (since 2005)	Director, Island Commuter Corp. (Marine Transport). | Trustee of John Hancock Trust (since 2008) and former Trustee of John Hancock Funds III (2005-2006).
Peter S. Burgess Born: 1942	Trustee (since 2005)	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).
Theron S. Hoffman2 Born: 1947	Trustee (since 2008)	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 Born: 1945	Trustee (since 2005)	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 Virtus Funds (formerly Phoenix Funds) (since 2008).
James M. Oates Born: 1946	Chairman (since 2005) Trustee (since 2004)	Chairman of the Board of John Hancock Funds II; 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); and Connecticut River Bancorp, Director (since 1998); Virtus Investment Management (since 2009); and Emerson Investment Management (since 2000). Trustee of John Hancock Trust (since 2004) and former Trustee of John Hancock Funds III (2005-2006).
Steven M. Roberts2 Born: 1944	Trustee (since 2008)	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).

 

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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust.

2  Mr. Hoffman and Mr. Roberts were appointed by the Board as Trustees on September 26, 2008.

514

John Hancock Funds II
Trustees and Officers Information

TRUSTEE EMERITUS

Name, Year of Birth	Position with the Trust	Principal Occupation(s) and Other Directorships During Past Five Years
John D. Richardson1 Born: 1938	Trustee Emeritus (since 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  Mr. Richardson became a non-voting Trustee Emeritus on December 14, 2006.

NON-INDEPENDENT TRUSTEES1,2
James R. Boyle3 Born: 1959	Trustee (since 2005)	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. Fey4,5 Born: 1946	Trustee (since 2008)	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  Non-Independent Trustee holds positions with the Fund’s investment adviser, underwriter and certain other affiliates.

2  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. Trustees may be removed (provided the aggregate number of Trustees after such removal shall not be less than one) with cause or without cause, by the action of two-thirds of the remaining Trustees or by action of two-thirds of the outstanding Shares of the Trust 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 position with Manulife Financial Corporation (or its affiliates), the ultimate 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.

OFFICERS OF THE TRUST
Hugh McHaffie Born: 1959	President (since 2009)	Executive Vice President, John Hancock Wealth Management (since 2006, including prior positions); Senior Vice President, Individual Business Product Management, MetLife, Inc. (1999-2006); Vice President, Annuity Product Management, John Hancock Life Insurance Company (1990-1999).
Thomas M. Kinzler Born: 1955	Secretary and Chief Legal Officer (since 2006)	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).
Francis V. Knox, Jr. Born: 1947	Chief Compliance Officer (since 2005)	Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics & Compliance Officer, Fidelity Investments (until 2001).

 

515

John Hancock Funds II
Trustees and Officers Information

Name, Year of Birth	Position with the Trust1	Principal Occupation(s) and Other Directorships During Past Five Years
Michael J. Leary Born: 1965	Treasurer (since 2009)	Vice President, John Hancock Life Insurance Company (U.S.A.) and Treasurer for John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since May 2009); Assistant Treasurer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2007-2009); Vice President and Director of Fund Administration, JP Morgan (2004-2007); Vice President and Senior Manager of Fund Administration, JP Morgan (1993-2004); Manager, Ernst & Young, LLC (1988-1993).
Charles A. Rizzo Born: 1957	Chief Financial Officer (since 2007)	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).
John G. Vrysen Born: 1955	Chief Operating Officer (since 2005)	Senior Vice President, Manulife Financial Corporation (since 2006); Director, Executive Vice President and Chief Operating Officer, the Adviser, The Berkley Group, John Hancock Investment Management Services, LLC and John Hancock Funds, LLC (since 2007); Chief Operating Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2007); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, the Adviser, The Berkley Group, Manulife Financial Corporation Global Investment Management (U.S.), LLC, John Hancock Investment Management Services, LLC, John Hancock Funds, LLC, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (2005-2007); Vice President, Manulife Financial Corporation (until 2006).

 

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.

516

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 June 30 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.

517

ITEM 2. CODE OF ETHICS.

(a) As of the end of the fiscal year August 31, 2009 the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Principal Executive Officer and Principal Chief Financial Officer. 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.

(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 has determined that at least one member of its audit committee is an “audit committee financial expert”. Peter S. Burgess is an audit committee financial expert and is “independent”, pursuant to general instructions on Form N-CSR Item 3.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) AUDIT FEES:

2009: $2,080,531

2008: $2,025,196

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:

2009: $64,045

2008: $91,561

These fees represent the aggregate fees billed for the Reporting Periods for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item. Such fees relate to professional services rendered by the principal accountant 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:

2009: $199,615

2008: $555,773

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 related to the review of the Registrant’s federal and state income tax returns, excise tax calculations and returns and a review of the Registrant’s calculations of capital gain and income distributions.

(d) ALL OTHER FEES:

2009: $55,000

2008: $0

These fees represent all other fees billed to the Registrant for products and services provided by the principal accountant. These fees were billed to the Registrant and were approved by the Registrant’s audit committee.

(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 the registrant’s principal accountant 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 $10,497,445 for the fiscal year ended August 31, 2009, and $1,418,218 for the fiscal year ended August 31, 2008.

(h) The audit committee of the registrant has considered the non-audit services provided by the registrant’s principal accountant to the control affiliates and has determined that the services that were non pre-approved are compatible with maintaining the principal accountant’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Peter S. Burgess – Chairman

Charles L. Bardelis

Steven M. Roberts

ITEM 6. SCHEDULE OF INVESTMENTS.

(a) This schedule is included as part of the Report to shareholders filed under Item 1 of this form.

(b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. 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.

No material changes.

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) Code of Ethics for Principal Executive Officer and Principal Financial Officer.

(a)(2) The certifications required by Rule 30a-2(a) under the 1940 Act.

(b) The certifications required by Rule 30a-2(b) under the 1940 Act.

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

  By: /s/ Hugh McHaffie    

Hugh McHaffie

President

Date: October 23, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

  By: /s/ Hugh McHaffie    

Hugh McHaffie

President

Date: October 23, 2009

  By: /s/ Charles A. Rizzo    

Charles A. Rizzo

Chief Financial Officer

Date: October 23, 2009