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)
SALVATORE SCHIAVONE, 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) 663-4497
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Date of fiscal year end: 7/31
Date of reporting period: 1/31/18
ITEM 1. REPORTS TO STOCKHOLDERS.
The Registrant prepared nine semiannual reports to shareholders for the period ended January 31, 2018. The first report applies to the Technical Opportunities Fund, the second report applies to the Global Income Fund, the third report applies to the Short Duration Credit Opportunities Fund, the fourth report applies to the Absolute Return Currency Fund, the fifth report applies to the Fundamental All Cap Core Fund, the sixth report applies to the Fundamental Large Cap Value Fund, the seventh report applies to the Diversified Strategies Fund, and the eight report applies to the Global Absolute Return Strategies Fund.
John Hancock
Technical Opportunities Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In the weeks following the close of the reporting period, markets around the world experienced a meaningful rise in volatility. Stocks declined as investors reacted to higher bond yields and the prospect of rising inflation, even if that inflation was up from historically low levels. While some in the asset management community believe the sell-off will be temporary, it's likely that the era of extremely low volatility is behind us for the time being.
Ultimately, asset prices are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close: Unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
The recently passed tax reform legislation appears poised to inject substantial stimulus into U.S. businesses at the same time that industry regulations are being rolled back across large swaths of the economy, including the systemically important financials sector. One moderating factor is the U.S. Federal Reserve's continued tightening of monetary policy. In mid-December, the federal funds rate was lifted by a quarter of a percentage point, the fifth such increase in the current cycle. While rising interest rates alone may not cause the economy to pull back, markets will be closely attuned to any suggestion that policymakers may quicken the pace of interest-rate increases in the year ahead.
Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence that accompanies investing in any market cycle.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Technical Opportunities Fund
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The MSCI All Country World Index (gross of foreign withholding tax on dividends) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
Global equities registered a healthy advance
Accelerating economic growth and rising corporate earnings contributed to a steady rally in stock prices.
The fund kept pace with its benchmark
Class A shares delivered a strong double-digit return, excluding sales charges.
Most sector positioning contributed, but individual stock selection detracted
The fund was helped by its overweight position in information technology, but certain holdings in the sector underperformed.
SECTOR COMPOSITION AS OF 1/31/18 (%)
A note about risks
A fund concentrated in one sector or that holds a limited number of securities may fluctuate more than a fund that invests in a wider variety of sectors. Stock prices can be volatile and are affected by both general economic conditions and the financial prospects of individual companies. The value of a company's equity securities is subject to changes in the company's financial condition and overall market and economic conditions. Foreign investing, including emerging markets, has additional risks, such as currency and market volatility and political and social instability. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Frequent trading may increase fund transaction costs. The fund may invest in initial public offerings, which are frequently volatile in price. The fund can invest up to 100% of its assets in cash, which may cause the fund to not meet its investment objective. Please see the fund's prospectus for additional risks.
Frank L. Teixeira, CMT, CFA
Portfolio Manager
Wellington Management Company LLP
Can you describe the market environment during the six months ended January 31, 2018?
Global equities generated a total return of 14.52%, as measured by the fund's benchmark, the MSCI All Country World Index. Investors were encouraged by an investment backdrop that featured improving global growth, rising corporate earnings, and continued confidence that the major central banks could maintain a gradual approach to tightening monetary policy.
The December passage of a tax reform package in the United States, which was highlighted by a significant reduction in the corporate tax rate, provided an additional boost to stock prices in the latter part of the period. Growth- and momentum-oriented stocks performed particularly well and outpaced the returns of the more conservative segments of the market.
The market environment was characterized by robust, sustained price trends in many of the top-performing stocks, which worked in favor of the fund. Market leadership broadened across sectors, with improved performance for materials, industrials, and financials. This shift marked a contrast to the technology-driven market that existed earlier in 2017. Geographically, leadership was concentrated within the United States and Japan. While European equities generated strong absolute returns, the region's markets lagged relative to the broad-based global indexes.
What factors influenced performance?
Class A shares of the fund registered a strong total return (excluding sales charges) and outperformed the benchmark. Performance was generally helped by sector allocations. The fund benefited from an overweight in the strong-performing information technology sector and average underweights in consumer staples, utilities, and telecommunication services, all of which trailed the
The benefit of positive sector allocation was offset somewhat by the impact of stock selection. Positive selection in the industrials, consumer discretionary, and financials sectors was outweighed by weaker selection in information technology and materials.
At the individual stock level, the largest detractors were Advanced Micro Devices, Inc., Tesla, Inc., and The Trade Desk, Inc., all of which lost ground despite the rally in the broader market. We bought Tesla and The Trade Desk during the course of the period, and we eliminated all three positions prior to the end of January.
On the positive side, Harmonic Drive Systems Inc., a maker of components used in industrial robotics that benefited from the growth in manufacturing automation, was the top performer in industrials, with XPO Logistics, Inc. (U.S.) and Daifuku Company, Ltd. (Japan) also contributing to the sector. We sold Daifuku prior to period end.
Geely Automobile Holdings, Ltd.—a China-based automotive manufacturing company—was the largest contributor in consumer discretionary, followed by Melco Resorts & Entertainment Ltd. (Hong Kong). We sold Geely, but continued to hold Melco as of the end of the period.
COUNTRY COMPOSITION AS OF 1/31/18 (%)
United States | 68.3 |
Japan | 13.4 |
China | 6.6 |
Hong Kong | 2.9 |
Brazil | 2.8 |
Canada | 1.6 |
Other countries | 4.4 |
TOTAL | 100.0 |
As a percentage of net assets. |
In financials, top performers included the U.S. companies Interactive Brokers Group, Inc. and World Acceptance Corp. In health care, Kite Pharma, Inc., a U.S. clinical-stage biopharmaceutical company that was bought out by Gilead Sciences, Inc., was one of the fund's leading individual contributors. We sold Kite from the portfolio on the tender offer, and the fund did not hold a position in Gilead.
How would you characterize the fund's positioning at the end of the period?
The fund finished January with overweights in consumer discretionary and utilities, which marked a shift from underweight allocations six months ago. It remained overweight in information technology, but we pared back the position to finance increased weightings in sectors that emerged as leaders. The fund closed the period with a weighting of 21.2% in technology stocks, down from a peak of about 60% in late 2016.
In contrast, financials shifted from being a significant underweight late in 2016 to become the fund's largest absolute sector weighting, at 21.4% of net assets as of period end. The fund was overweight in industrials and consumer discretionary, with some exposure to retail within the latter category despite some investor concerns about the industry.
TOP 10 HOLDINGS AS OF 1/31/18 (%)
Nintendo Company, Ltd. | 2.8 |
The Charles Schwab Corp. | 2.6 |
TD Ameritrade Holding Corp. | 2.5 |
Comerica, Inc. | 1.8 |
Sony Corp. | 1.7 |
Bank of America Corp. | 1.6 |
WEC Energy Group, Inc. | 1.5 |
Xcel Energy, Inc. | 1.5 |
Alphabet, Inc., Class A | 1.4 |
Weibo Corp., ADR | 1.3 |
TOTAL | 18.7 |
As a percentage of net assets. | |
Cash and cash equivalents are not included. |
At the regional level, we increased the fund's overweight in the United States and boosted the size of its allocation to Japan, financing these increases by reducing the fund's positions in certain emerging markets and European countries. The fund is positioned more globally than in years past, as we see leadership broadening outside of the United States. As always, we continued to scour the world for emerging trends and leading stocks.
Following a long stretch of healthy gains, the world equity markets experienced negative performance and increased volatility after the close of the reporting period. An interval of weaker returns was within expectations given the extent of the prior rally, although the velocity of the decline was quicker than we would have anticipated. While we believe this represented a normal correction given the continued strength in the longer-term trend, we also expect that volatility will remain elevated compared with the unusually low levels of 2017.
MANAGED BY
Frank L. Teixeira, CMT, CFA On the fund since 2009 Investing since 1989 | |
David Lundgren, CMT, CFA On the fund since 2017 Investing since 1988 |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | Since inception1 | 6-month | 5-year | Since inception1 | ||
Class A | 28.20 | 12.66 | 9.08 | 9.53 | 81.51 | 109.29 | |
Class C2 | 32.85 | 13.25 | 9.42 | 13.84 | 86.33 | 114.93 | |
Class I3 | 35.26 | 14.17 | 10.11 | 15.46 | 93.98 | 126.69 | |
Class R62,3 | 35.41 | 13.91 | 9.79 | 15.51 | 91.75 | 121.18 | |
Class NAV3 | 35.44 | 14.33 | 10.28 | 15.53 | 95.32 | 129.66 | |
Index† | 28.15 | 11.61 | 11.56 | 14.52 | 73.21 | 153.41 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. The expense ratios are as follows:
Class A | Class C | Class I | Class R6* | Class NAV | |
Gross/Net (%) | 1.29 | 1.99 | 0.96 | 0.88 | 0.86 |
* Expenses have been estimated for the first year of operations of Class R6 shares.
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the MSCI All Country World Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Technical Opportunities Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the MSCI All Country World Index.
The MSCI All Country World Index (gross of foreign withholding tax on dividends) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | From 8-3-09. |
2 | Class C shares were first offered on 8-28-14; Class R6 shares were first offered on 2-13-17. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
3 | For certain types of investors as described in the fund's prospectuses. |
4 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,153.00 | $6.89 | 1.27% |
Hypothetical example for comparison purposes | 1,000.00 | 1,018.80 | 6.46 | 1.27% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,148.00 | 10.67 | 1.97% |
Hypothetical example for comparison purposes | 1,000.00 | 1,015.30 | 10.01 | 1.97% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,154.60 | 5.32 | 0.98% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.30 | 4.99 | 0.98% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,155.10 | 4.78 | 0.88% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.80 | 4.48 | 0.88% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,155.30 | 4.73 | 0.87% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.80 | 4.43 | 0.87% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Shares | Value | ||||
Common stocks 96.5% | $527,764,086 | ||||
(Cost $450,368,451) | |||||
Consumer discretionary 17.8% | 97,085,422 | ||||
Auto components 0.7% | |||||
Stanley Electric Company, Ltd. | 96,594 | 3,931,852 | |||
Automobiles 0.9% | |||||
BYD Company, Ltd., H Shares (A) | 523,128 | 4,922,037 | |||
Diversified consumer services 0.7% | |||||
Estacio Participacoes SA | 314,586 | 3,457,238 | |||
Hotels, restaurants and leisure 4.3% | |||||
Galaxy Entertainment Group, Ltd. | 439,315 | 3,875,587 | |||
International Game Technology PLC | 117,739 | 3,422,673 | |||
Melco Resorts & Entertainment, Ltd., ADR | 231,905 | 6,906,131 | |||
Sands China, Ltd. | 373,535 | 2,219,799 | |||
The Wendy's Company | 160,327 | 2,594,091 | |||
Wingstop, Inc. (A) | 87,975 | 4,254,471 | |||
Household durables 2.2% | |||||
LG Electronics, Inc. | 27,616 | 2,649,085 | |||
Sony Corp. | 193,835 | 9,296,533 | |||
Internet and direct marketing retail 3.0% | |||||
Amazon.com, Inc. (B) | 1,871 | 2,714,615 | |||
JD.com, Inc., ADR (B) | 83,553 | 4,113,314 | |||
Wayfair, Inc., Class A (B) | 59,777 | 5,500,082 | |||
Zalando SE (B) | 71,999 | 4,220,004 | |||
Media 0.9% | |||||
CyberAgent, Inc. (A) | 117,064 | 5,090,611 | |||
Multiline retail 0.7% | |||||
Ollie's Bargain Outlet Holdings, Inc. (B) | 71,939 | 3,996,211 | |||
Specialty retail 1.1% | |||||
Floor & Decor Holdings, Inc., Class A (B) | 54,746 | 2,567,587 | |||
Sleep Number Corp. (B) | 83,836 | 3,155,587 | |||
Textiles, apparel and luxury goods 3.3% | |||||
Columbia Sportswear Company | 54,363 | 4,059,285 | |||
Lululemon Athletica, Inc. (B) | 39,703 | 3,105,172 | |||
Moncler SpA | 118,449 | 3,903,515 | |||
Skechers U.S.A., Inc., Class A (B) | 109,619 | 4,515,207 | |||
Steven Madden, Ltd. (B) | 56,596 | 2,614,735 | |||
Consumer staples 2.5% | 13,763,012 | ||||
Beverages 1.2% | |||||
PepsiCo, Inc. | 56,217 | 6,762,905 | |||
Personal products 1.3% | |||||
Pola Orbis Holdings, Inc. | 178,816 | 7,000,107 |
12 | JOHN HANCOCK Technical Opportunities FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials 21.4% | $116,925,994 | ||||
Banks 7.5% | |||||
Bank of America Corp. | 275,394 | 8,812,608 | |||
Citigroup, Inc. | 70,555 | 5,537,156 | |||
Comerica, Inc. | 103,427 | 9,848,319 | |||
SVB Financial Group (B) | 10,722 | 2,643,509 | |||
Texas Capital Bancshares, Inc. (B) | 49,720 | 4,713,456 | |||
The PNC Financial Services Group, Inc. | 34,838 | 5,505,101 | |||
Western Alliance Bancorp (B) | 63,489 | 3,724,265 | |||
Capital markets 11.2% | |||||
B3 SA - Brasil Bolsa Balcao | 340,911 | 2,792,696 | |||
Evercore, Inc., Class A | 55,678 | 5,598,423 | |||
Interactive Brokers Group, Inc., Class A | 34,216 | 2,189,482 | |||
Morgan Stanley | 98,631 | 5,577,583 | |||
Noah Holdings, Ltd., ADR (A)(B) | 79,903 | 3,948,007 | |||
TD Ameritrade Holding Corp. | 247,636 | 13,815,612 | |||
The Charles Schwab Corp. | 268,932 | 14,344,833 | |||
The Goldman Sachs Group, Inc. | 20,866 | 5,589,793 | |||
Waddell & Reed Financial, Inc., Class A (A) | 195,487 | 4,496,201 | |||
WisdomTree Investments, Inc. | 244,233 | 2,830,660 | |||
Consumer finance 1.8% | |||||
Credit Acceptance Corp. (A)(B) | 14,874 | 4,904,107 | |||
World Acceptance Corp. (B) | 44,346 | 5,235,045 | |||
Thrifts and mortgage finance 0.9% | |||||
MGIC Investment Corp. (B) | 325,178 | 4,819,138 | |||
Health care 11.1% | 60,954,794 | ||||
Biotechnology 6.7% | |||||
Adamas Pharmaceuticals, Inc. (A)(B) | 74,720 | 2,827,405 | |||
Alnylam Pharmaceuticals, Inc. (B) | 41,131 | 5,346,207 | |||
Array BioPharma, Inc. (B) | 210,835 | 3,124,575 | |||
Biogen, Inc. (B) | 8,925 | 3,104,204 | |||
Bluebird Bio, Inc. (B) | 16,257 | 3,331,059 | |||
Blueprint Medicines Corp. (B) | 33,877 | 2,664,426 | |||
Editas Medicine, Inc. (B) | 159,608 | 5,827,288 | |||
Insmed, Inc. (B) | 58,854 | 1,497,246 | |||
Neurocrine Biosciences, Inc. (B) | 45,238 | 3,866,492 | |||
Vertex Pharmaceuticals, Inc. (B) | 30,857 | 5,149,108 | |||
Health care equipment and supplies 1.0% | |||||
Insulet Corp. (B) | 73,140 | 5,597,404 | |||
Health care providers and services 0.1% | |||||
Teladoc, Inc. (B) | 14,553 | 544,282 | |||
Pharmaceuticals 3.3% | |||||
Aerie Pharmaceuticals, Inc. (B) | 112,913 | 6,193,278 | |||
Pfizer, Inc. | 177,128 | 6,560,821 | |||
Sino Biopharmaceutical, Ltd. | 2,900,744 | 5,320,999 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK TECHNICAL OPPORTUNITIES FUND | 13 |
Shares | Value | ||||
Industrials 13.0% | $71,135,432 | ||||
Aerospace and defense 0.5% | |||||
Textron, Inc. | 46,683 | 2,738,892 | |||
Air freight and logistics 1.2% | |||||
FedEx Corp. | 12,463 | 3,271,288 | |||
XPO Logistics, Inc. (B) | 32,989 | 3,115,481 | |||
Airlines 1.6% | |||||
Delta Air Lines, Inc. | 90,059 | 5,112,649 | |||
Southwest Airlines Company | 63,580 | 3,865,664 | |||
Construction and engineering 2.3% | |||||
Dycom Industries, Inc. (B) | 27,602 | 3,221,429 | |||
Granite Construction, Inc. | 59,825 | 3,989,729 | |||
MasTec, Inc. (B) | 52,553 | 2,806,330 | |||
Quanta Services, Inc. (B) | 63,941 | 2,461,089 | |||
Electrical equipment 1.5% | |||||
Hubbell, Inc. | 19,808 | 2,692,898 | |||
Mitsubishi Electric Corp. | 284,521 | 5,236,362 | |||
Machinery 3.9% | |||||
FANUC Corp. | 16,046 | 4,355,180 | |||
Harmonic Drive Systems, Inc. (A) | 81,284 | 5,597,868 | |||
Komatsu, Ltd. | 105,530 | 4,147,591 | |||
Oshkosh Corp. | 29,521 | 2,678,145 | |||
WEG SA | 627,375 | 4,665,014 | |||
Road and rail 2.0% | |||||
Knight-Swift Transportation Holdings, Inc. | 74,585 | 3,713,587 | |||
Norfolk Southern Corp. | 21,248 | 3,205,898 | |||
Rumo SA (B) | 951,031 | 4,260,338 | |||
Information technology 21.2% | 116,086,978 | ||||
Communications equipment 0.5% | |||||
ViaSat, Inc. (A)(B) | 35,004 | 2,647,002 | |||
Electronic equipment, instruments and components 0.4% | |||||
AAC Technologies Holdings, Inc. | 137,971 | 2,286,123 | |||
Internet software and services 9.9% | |||||
58.com, Inc., ADR (B) | 48,894 | 3,905,653 | |||
Alibaba Group Holding, Ltd., ADR (B) | 28,764 | 5,876,198 | |||
Alphabet, Inc., Class A (B) | 6,558 | 7,752,999 | |||
CoStar Group, Inc. (B) | 17,711 | 6,129,954 | |||
Match Group, Inc. (A)(B) | 119,349 | 4,170,054 | |||
MercadoLibre, Inc. | 7,807 | 3,022,090 | |||
Okta, Inc. (B) | 88,971 | 2,620,196 | |||
Shopify, Inc., Class A (A)(B) | 34,799 | 4,451,488 | |||
Weibo Corp., ADR (A)(B) | 55,029 | 7,130,108 | |||
Yandex NV, Class A (B) | 132,303 | 5,124,095 | |||
YY, Inc., ADR (B) | 27,754 | 3,690,172 |
14 | JOHN HANCOCK Technical Opportunities Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Information technology (continued) | |||||
IT services 3.7% | |||||
Automatic Data Processing, Inc. | 45,273 | $5,597,101 | |||
GMO Payment Gateway, Inc. | 69,995 | 6,158,764 | |||
PayPal Holdings, Inc. (B) | 46,378 | 3,956,971 | |||
Worldpay, Inc., Class A (B) | 57,571 | 4,623,527 | |||
Semiconductors and semiconductor equipment 0.7% | |||||
NVIDIA Corp. | 16,027 | 3,939,437 | |||
Software 6.0% | |||||
Atlassian Corp. PLC, Class A (B) | 48,963 | 2,643,512 | |||
HubSpot, Inc. (A)(B) | 36,152 | 3,508,552 | |||
LINE Corp. (B) | 94,001 | 4,451,637 | |||
Nintendo Company, Ltd. | 33,519 | 15,181,247 | |||
salesforce.com, Inc. (B) | 24,451 | 2,785,213 | |||
Zendesk, Inc. (B) | 115,132 | 4,434,885 | |||
Materials 2.8% | 15,216,601 | ||||
Chemicals 1.4% | |||||
Asahi Kasei Corp. | 220,461 | 2,892,446 | |||
DowDuPont, Inc. | 35,234 | 2,662,986 | |||
GCP Applied Technologies, Inc. (B) | 62,731 | 2,095,215 | |||
Containers and packaging 1.1% | |||||
International Paper Company | 64,803 | 4,073,517 | |||
WestRock Company | 31,857 | 2,122,632 | |||
Metals and mining 0.3% | |||||
Yamana Gold, Inc. | 398,199 | 1,369,805 | |||
Utilities 6.7% | 36,595,853 | ||||
Electric utilities 4.0% | |||||
Eversource Energy | 104,484 | 6,591,896 | |||
FirstEnergy Corp. | 124,683 | 4,102,071 | |||
NextEra Energy, Inc. | 17,196 | 2,724,190 | |||
Xcel Energy, Inc. | 179,922 | 8,211,640 | |||
Multi-utilities 2.7% | |||||
Ameren Corp. | 117,395 | 6,648,079 | |||
WEC Energy Group, Inc. | 129,362 | 8,317,977 | |||
Yield (%) | Shares | Value | |||
Securities lending collateral 6.2% | $33,870,773 | ||||
(Cost $33,866,752) | |||||
John Hancock Collateral Trust (C) | 1.4720(D) | 3,385,351 | 33,870,773 | ||
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK TECHNICAL OPPORTUNITIES FUND | 15 |
Par value^ | Value | ||||
Short-term investments 6.5% | $35,500,000 | ||||
(Cost $35,500,000) | |||||
Repurchase agreement 6.5% | 35,500,000 | ||||
Bank of America Tri-Party Repurchase Agreement dated 1-31-18 at 1.360% to be repurchased at $35,501,341 on 2-1-18, collateralized by $35,282,196 Government National Mortgage Association, 3.500% due 12-20-42 (valued at $36,210,000, including interest) | 35,500,000 | 35,500,000 |
Total investments (Cost $519,735,203) 109.2% | $597,134,859 | ||||
Other assets and liabilities, net (9.2%) | (50,498,138) | ||||
Total net assets 100.0% | $546,636,721 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | A portion of this security is on loan as of 1-31-18. |
(B) | Non-income producing security. |
(C) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(D) | The rate shown is the annualized seven-day yield as of 1-31-18. |
16 | JOHN HANCOCK TECHNICAL OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Unaffiliated investments, at value (Cost $485,868,451) including $32,689,350 of securities loaned | $563,264,086 | |||||||||||||||||||||||||||||
Affiliated investments, at value (Cost $33,866,752) | 33,870,773 | |||||||||||||||||||||||||||||
Total investments, at value (Cost $519,735,203) | 597,134,859 | |||||||||||||||||||||||||||||
Cash | 60,723 | |||||||||||||||||||||||||||||
Foreign currency, at value (Cost $78) | 79 | |||||||||||||||||||||||||||||
Receivable for investments sold | 20,724,334 | |||||||||||||||||||||||||||||
Receivable for fund shares sold | 19,439 | |||||||||||||||||||||||||||||
Dividends and interest receivable | 342,853 | |||||||||||||||||||||||||||||
Receivable for securities lending income | 87,709 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 58,790 | |||||||||||||||||||||||||||||
Total assets | 618,428,786 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Payable for investments purchased | 18,746,083 | |||||||||||||||||||||||||||||
Payable for fund shares repurchased | 19,010,475 | |||||||||||||||||||||||||||||
Payable upon return of securities loaned | 33,932,799 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 22,978 | |||||||||||||||||||||||||||||
Transfer agent fees | 4,065 | |||||||||||||||||||||||||||||
Trustees' fees | 1,318 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 74,347 | |||||||||||||||||||||||||||||
Total liabilities | 71,792,065 | |||||||||||||||||||||||||||||
Net assets | $546,636,721 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $423,167,622 | |||||||||||||||||||||||||||||
Accumulated net investment loss | (3,079,628 | ) | ||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | 49,160,918 | |||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 77,387,809 | |||||||||||||||||||||||||||||
Net assets | $546,636,721 | |||||||||||||||||||||||||||||
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 ($30,951,063 ÷ 2,521,017 shares)1 | $12.28 | |||||||||||||||||||||||||||||
Class C ($2,016,245 ÷ 161,774 shares)1 | $12.46 | |||||||||||||||||||||||||||||
Class I ($9,982,246 ÷ 780,181 shares) | $12.79 | |||||||||||||||||||||||||||||
Class R6 ($56,117 ÷ 4,300 shares) | $13.05 | |||||||||||||||||||||||||||||
Class NAV ($503,631,050 ÷ 38,595,100 shares) | $13.05 | |||||||||||||||||||||||||||||
Maximum offering price per share | ||||||||||||||||||||||||||||||
Class A (net asset value per share ÷ 95%)2 | $12.93 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Dividends | $1,778,521 | |||||||||||||||||||||||
Securities lending | 562,695 | |||||||||||||||||||||||
Interest | 239,735 | |||||||||||||||||||||||
Less foreign taxes withheld | (59,812 | ) | ||||||||||||||||||||||
Total investment income | 2,521,139 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 2,288,566 | |||||||||||||||||||||||
Distribution and service fees | 54,623 | |||||||||||||||||||||||
Accounting and legal services fees | 45,044 | |||||||||||||||||||||||
Transfer agent fees | 22,541 | |||||||||||||||||||||||
Trustees' fees | 5,107 | |||||||||||||||||||||||
State registration fees | 38,008 | |||||||||||||||||||||||
Printing and postage | 22,278 | |||||||||||||||||||||||
Professional fees | 41,126 | |||||||||||||||||||||||
Custodian fees | 48,011 | |||||||||||||||||||||||
Other | 13,050 | |||||||||||||||||||||||
Total expenses | 2,578,354 | |||||||||||||||||||||||
Less expense reductions | (24,083 | ) | ||||||||||||||||||||||
Net expenses | 2,554,271 | |||||||||||||||||||||||
Net investment loss | (33,132 | ) | ||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Unaffiliated investments and foreign currency transactions | 82,134,881 | |||||||||||||||||||||||
Affiliated investments | (11,969 | ) | ||||||||||||||||||||||
82,122,912 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (945,509 | ) | ||||||||||||||||||||||
Affiliated investments | 1,878 | |||||||||||||||||||||||
(943,631 | ) | |||||||||||||||||||||||
Net realized and unrealized gain | 81,179,281 | |||||||||||||||||||||||
Increase in net assets from operations | $81,146,149 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
From operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | ($33,132 | ) | ($817,635 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net realized gain | 82,122,912 | 89,842,679 | ||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (943,631 | ) | 41,778,348 | |||||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 81,146,149 | 130,803,392 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||||||||||||||||||||||||||
Class I | (18,713 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class R61 | (167 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class NAV | (1,480,157 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (4,799,850 | ) | (29,210 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class C | (313,705 | ) | (1,803 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class I | (1,516,762 | ) | (7,302 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class R61 | (9,657 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class NAV | (80,632,476 | ) | (483,440 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (88,771,487 | ) | (521,755 | ) | ||||||||||||||||||||||||||||||||||||||||||||
From fund share transactions | (25,381,253 | ) | (199,162,342 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total decrease | (33,006,591 | ) | (68,880,705 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 579,643,312 | 648,524,017 | ||||||||||||||||||||||||||||||||||||||||||||||
End of period | $546,636,721 | $579,643,312 | ||||||||||||||||||||||||||||||||||||||||||||||
Accumulated net investment loss | ($3,079,628 | ) | ($1,547,459 | ) |
1 | The inception date for Class R6 shares is 2-13-17. |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $12.72 | $10.38 | $14.47 | $13.76 | $13.15 | $9.65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss2 | (0.03 | ) | (0.06 | ) | (0.10 | ) | (0.14 | ) | (0.14 | ) | (0.08 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.84 | 2.41 | (2.42 | ) | 2.81 | 2.09 | 3.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.81 | 2.35 | (2.52 | ) | 2.67 | 1.95 | 3.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (2.25 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | (1.34 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (2.25 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | (1.34 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $12.28 | $12.72 | $10.38 | $14.47 | $13.76 | $13.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 15.30 | 5 | 22.65 | (18.77 | ) | 21.46 | 14.86 | 36.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $31 | $29 | $40 | $66 | $59 | $45 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.28 | 6 | 1.55 | 1.66 | 1.67 | 1.72 | 1.78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.27 | 6 | 1.54 | 1.65 | 1.65 | 1.71 | 1.78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (0.40 | ) 6 | (0.58 | ) | (0.84 | ) | (1.05 | ) | (1.03 | ) | (0.69 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 232 | 375 | 349 | 228 | 306 | 391 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class C Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $12.93 | $10.62 | $14.86 | $14.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss3 | (0.07 | ) | (0.14 | ) | (0.18 | ) | (0.27 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.85 | 2.46 | (2.49 | ) | 2.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.78 | 2.32 | (2.67 | ) | 1.88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (2.25 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (2.25 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $12.46 | $12.93 | $10.62 | $14.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4,5 | 14.80 | 6 | 21.86 | (19.32 | ) | 14.41 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $3 | $2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.98 | 7 | 2.25 | 2.36 | 3.39 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.97 | 7 | 2.24 | 2.35 | 2.50 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (1.09 | ) 7 | (1.27 | ) | (1.51 | ) | (2.06 | ) 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 232 | 375 | 349 | 228 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class C shares is 8-28-14. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $13.18 | $10.72 | $14.84 | $14.03 | $13.35 | $9.77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss2 | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.10 | ) | (0.11 | ) | (0.04 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.89 | 2.49 | (2.48 | ) | 2.87 | 2.13 | 3.62 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.88 | 2.47 | (2.55 | ) | 2.77 | 2.02 | 3.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.02 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (2.25 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | (1.34 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (2.27 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | (1.34 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $12.79 | $13.18 | $10.72 | $14.84 | $14.03 | $13.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 15.46 | 4 | 23.05 | (18.49 | ) | 21.79 | 15.17 | 36.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $10 | $11 | $12 | $44 | $30 | $18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.98 | 5 | 1.22 | 1.34 | 1.35 | 1.44 | 1.48 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.98 | 5 | 1.22 | 1.34 | 1.34 | 1.43 | 1.47 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (0.08 | ) 5 | (0.19 | ) | (0.54 | ) | (0.74 | ) | (0.75 | ) | (0.39 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 232 | 375 | 349 | 228 | 306 | 391 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Class R6 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $13.40 | $11.63 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | — | 4 | 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain on investments | 1.93 | 1.75 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.93 | 1.77 | ||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.03 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (2.25 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (2.28 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $13.05 | $13.40 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)5 | 15.51 | 6 | 15.22 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 7 | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.89 | 8 | 1.04 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.88 | 8 | 1.03 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.01 | 8 | 0.37 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 232 | 375 | 9 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R6 shares is 2-13-17. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The portfolio turnover is shown for the period from 8-1-16 to 7-31-17. |
Class NAV Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $13.40 | $10.89 | $15.03 | $14.16 | $13.44 | $9.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)2 | — | 3 | (0.01 | ) | (0.05 | ) | (0.08 | ) | (0.08 | ) | (0.02 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.94 | 2.53 | (2.52 | ) | 2.91 | 2.14 | 3.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.94 | 2.52 | (2.57 | ) | 2.83 | 2.06 | 3.63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.04 | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (2.25 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | (1.34 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (2.29 | ) | (0.01 | ) | (1.57 | ) | (1.96 | ) | (1.34 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $13.05 | $13.40 | $10.89 | $15.03 | $14.16 | $13.44 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 15.53 | 5 | 23.15 | (18.38 | ) | 22.02 | 15.38 | 37.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $504 | $538 | $594 | $758 | $783 | $606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.87 | 6 | 1.12 | 1.23 | 1.21 | 1.22 | 1.24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.87 | 6 | 1.11 | 1.22 | 1.20 | 1.21 | 1.23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.02 | 6 | (0.10 | ) | (0.41 | ) | (0.59 | ) | (0.54 | ) | (0.16 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 232 | 375 | 349 | 228 | 306 | 391 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Note 1 — Organization
John Hancock Technical Opportunities Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of Assets and Liabilities. Class A and Class C are open to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2
includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of January 31, 2018, by major security category or type:
Total value at 1-31-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | ||
Investments in securities: | |||||
Assets | |||||
Common stocks | |||||
Consumer discretionary | $97,085,422 | $53,519,161 | $43,566,261 | — | |
Consumer staples | 13,763,012 | 6,762,905 | 7,000,107 | — | |
Financials | 116,925,994 | 114,133,298 | 2,792,696 | — | |
Health care | 60,954,794 | 55,633,795 | 5,320,999 | — | |
Industrials | 71,135,432 | 42,873,079 | 28,262,353 | — | |
Information technology | 116,086,978 | 88,009,207 | 28,077,771 | — | |
Materials | 15,216,601 | 12,324,155 | 2,892,446 | — | |
Utilities | 36,595,853 | 36,595,853 | — | — | |
Securities lending collateral | 33,870,773 | 33,870,773 | — | — | |
Short-term investments | 35,500,000 | — | 35,500,000 | — | |
Total investments in securities | $597,134,859 | $443,722,226 | $153,412,633 | — |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV 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-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on
the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives cash collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of the loss of the securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of January 31, 2018, the fund loaned common stocks valued at $32,689,350 and received $33,932,799 of cash collateral.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the
line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $1,742.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund typically declares and pays dividends and capital gain distributions, if any, at least annually.
Distributions paid by the fund 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 class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to net operating losses, investments in passive foreign investment companies and wash sale loss deferrals.
Note 3 — Guarantees and indemnifications
Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to 0.800% of the fund's average daily net assets. The Advisor has a subadvisory agreement with Wellington Management Company LLP. The fund is not responsible for payment of subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
The expense reductions described above amounted to the following for the six months ended January 31, 2018:
Class | Expense reduction | Class | Expense reduction | |
Class A | $1,257 | Class R6 | $2 | |
Class C | 83 | Class NAV | 22,336 | |
Class I | 405 | Total | $24,083 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 0.79% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A and Class C pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee |
Class A | 0.30% |
Class C | 1.00% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $23,791 for the six months ended January 31, 2018. Of this amount, $3,902 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $15,818 was paid as sales commissions to broker-dealers and $4,071 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, CDSCs received by the Distributor amounted to $32 Class C shares, and there were no CDSCs for Class A shares.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also
includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $44,737 | $16,216 |
Class C | 9,886 | 1,075 |
Class I | — | 5,246 |
Class R6 | — | 4 |
Total | $54,623 | $22,541 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 5 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 202,272 | $2,587,728 | 263,987 | $2,980,663 | ||||||||||||||||||||||
Distributions reinvested | 410,150 | 4,741,334 | 2,785 | 28,935 | ||||||||||||||||||||||
Repurchased | (387,772 | ) | (5,012,588 | ) | (1,836,758 | ) | (19,907,384 | ) | ||||||||||||||||||
Net increase (decrease) | 224,650 | $2,316,474 | (1,569,986 | ) | ($16,897,786 | ) | ||||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 16,303 | $210,337 | 17,293 | $197,572 | ||||||||||||||||||||||
Distributions reinvested | 22,791 | 267,567 | 139 | 1,478 | ||||||||||||||||||||||
Repurchased | (36,525 | ) | (473,873 | ) | (124,480 | ) | (1,344,060 | ) | ||||||||||||||||||
Net increase (decrease) | 2,569 | $4,031 | (107,048 | ) | ($1,145,010 | ) | ||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 122,244 | $1,666,121 | 616,415 | $7,044,357 | ||||||||||||||||||||||
Distributions reinvested | 122,533 | 1,475,300 | 627 | 6,735 | ||||||||||||||||||||||
Repurchased | (279,107 | ) | (3,706,751 | ) | (915,715 | ) | (10,356,649 | ) | ||||||||||||||||||
Net decrease | (34,330 | ) | ($565,330 | ) | (298,673 | ) | ($3,305,557 | ) | ||||||||||||||||||
Class R6 shares1 | ||||||||||||||||||||||||||
Sold | 2 | $21 | 4,299 | $50,000 | ||||||||||||||||||||||
Repurchased | (1 | ) | (13 | ) | — | — | ||||||||||||||||||||
Net increase | 1 | $8 | 4,299 | $50,000 |
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 202,851 | $2,737,106 | 415,301 | $4,913,657 | ||||||||||||||||||||||
Distributions reinvested | 6,686,696 | 82,112,633 | 44,271 | 483,440 | ||||||||||||||||||||||
Repurchased | (8,401,013 | ) | (111,986,175 | ) | (14,850,784 | ) | (183,261,086 | ) | ||||||||||||||||||
Net decrease | (1,511,466 | ) | ($27,136,436 | ) | (14,391,212 | ) | ($177,863,989 | ) | ||||||||||||||||||
Total net decrease | (1,318,576 | ) | ($25,381,253 | ) | (16,362,620 | ) | ($199,162,342 | ) |
1The inception date for Class R6 shares is 2-13-17.
Affiliates of the fund owned 100% shares of Class R6 and Class NAV, respectively, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $1,239,418,150 and $1,319,048,153, respectively, for the six months ended January 31, 2018.
Note 7 — Industry or sector risk
The fund generally invests a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund's assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund's NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors. Financial services companies can be hurt by economic declines, changes in interest rates regulatory and market impacts.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At January 31, 2018, funds within the John Hancock group of funds complex held 91.0% of the fund's net assets. The following funds had an affiliate ownership of 5% or more of the fund's net assets:
Fund | Affiliated concentration |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 44.7% |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 22.3% |
John Hancock Funds II Multimanager Lifestyle Aggressive Portfolio | 18.7% |
John Hancock Funds II Alternative Asset Allocation Fund | 5.3% |
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor Wellington Management Company LLP 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 |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
John Hancock family of funds
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ASSET ALLOCATION Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
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Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Technical Opportunities Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431087 | 347SA 1/18 3/18 |
John Hancock
Global Income Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In early February—just after the close of the reporting period—markets around the world experienced a meaningful rise in volatility. Stocks and other risk assets declined as investors reacted to the signs of rising inflation, a prospect that suggested the U.S. Federal Reserve was likely to continue to withdraw stimulus from the financial system. Longer-term yields climbed sharply, as investors sold long-dated U.S. Treasury debt. After significant losses in a matter of days, major indexes reversed course again. It appears that volality will be an issue in 2018.
While some in the asset management community believe the dip in risk assets will be temporary, it's likely that the era of extremely low volatility is behind us for the time being. Ultimately, asset prices of stocks and corporate bonds are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close: Unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
That said, this kind of market behavior is likely representative of the balancing act investors will face in the year ahead: Continued solid economic growth will lead to normalization of monetary policy, meaning higher borrowing costs and greater headwinds for rate-sensitive securities. Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence along the way.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Global Income Fund
INVESTMENT OBJECTIVE
The fund seeks a high level of current income with capital appreciation as a secondary objective.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The ICE Bank of America Merrill Lynch Global High Yield and Emerging Markets Plus Index tracks the performance of the below- and border-line investment-grade global debt markets denominated in the major developed-market currencies.
The blended index is 50% ICE Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index and 50% JPMorgan EMBI Global Diversified Index.
The ICE Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index consisting of U.S. dollar-denominated public corporate issues with par amounts greater than $100 million that are rated below investment grade.
The JPMorgan EMBI Global Diversified Index is an unmanaged index consisting of traded external debt instruments in the emerging markets, with an outstanding face value of at least $500 million; it limits the weight of index countries with larger debt stocks to maintain diversification.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
High-yield and emerging-market bonds advanced
The combination of improving global growth, rising corporate earnings, and robust investor sentiment fueled gains for higher-yielding fixed-income investments.
The fund performed well compared to its blended benchmark
Effective positioning in the emerging markets helped the fund deliver positive relative performance.
Positioning in high yield also added value
Favorable security selection led to modest outperformance for the high-yield bond portfolio.
PORTFOLIO COMPOSITION AS OF 1/31/18 (%)
A note about risks
Fixed-income investments are subject to interest-rate and credit-rate risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Investments in higher-yielding, lower-rated securities include a higher risk of default. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Currency transactions are affected by fluctuations in exchange rates. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, and may be subject to early repayment and the market's perception of issuer creditworthiness. Loan participations and assignments involve additional risks, including credit, interest-rate, counterparty, liquidity, and lending risk. Please see the fund's prospectus for additional risks.
From the Investment Management Team
Stone Harbor Investment Partners LP
How did high-yield and emerging-market bonds perform during the six months ended January 31, 2018?
Both categories produced positive returns thanks to the favorable backdrop of synchronized worldwide growth and elevated investor risk appetites. The ICE Bank of America Merrill Lynch Global High Yield and Emerging Markets Plus Index gained 3.72% for the period.
The fund's blended benchmark, which is equally weighted between the ICE Bank Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index and the J.P. Morgan EMBI Global Diversified Index, returned 2.43%. The two indexes returned 1.93% and 2.92%, respectively.
What factors drove performance in high yield?
High-yield bonds (those rated BB and below) performed reasonably well, albeit with greater volatility than we witnessed through most of 2016 and the early part of 2017. The gain for the high-yield index reflected the combination of improving global growth, rising corporate earnings, and the passage of tax reform late in the period. Together, these factors led to a general strengthening of corporate balance sheets and helped keep the default rate below the historical average. The market was further boosted by healthy investor sentiment, which led to elevated demand for higher-yielding assets. At the same time, however, the upside was capped by yield spreads that remained on the low end of the long-term range.
What were the main drivers of performance for the emerging markets?
The emerging markets gained an outsize benefit from the upturn in global growth, which sparked a rally in commodity prices and led to increased exports from many emerging nations. The improvement in fundamentals, together with the generally attractive valuations in the category, fueled asset inflows and led to a narrowing of yield spreads. Corporate bonds, especially those issued by companies in the energy and mining segments, outperformed amid investors' ongoing search for yield.
What factors had the largest impact on the fund's results?
Positioning in the emerging-market portfolio made a significant contribution to relative performance, as did decisions with regard to the fund's overall asset allocation. Positioning in high yield also contributed, although to a lesser degree than in the emerging markets.
After entering the reporting period with roughly equal weightings in the two categories, we gradually increased the fund's position in the emerging markets to a peak of 57.5% on the belief that the asset class offered more attractive valuations and higher sensitivity to accelerating growth. This shift added value by allowing the fund to capture a larger benefit from the category's outperformance. Later in the reporting period, we reduced the allocation to the emerging markets and rotated the proceeds back into high yield, reflecting our efforts to lock in gains on certain positions and reduce exposure to local currency emerging-market bonds. At the close of January, the fund held a lower weighting in high-yield bonds and a higher weighting in the emerging markets than it did six months earlier.
How did the fund's strategy in the emerging markets affect its return?
The fund registered strong returns and exceeded the gain of the broader category by a meaningful margin. Country selection made the largest contribution, with the best results coming from the Europe/Middle East/Africa region. The fund benefited from having an investment in Iraq, where sovereign issues staged a sizable rally in tandem with the recovery in oil prices. Positions in sub-Saharan African nations, particularly Ivory Coast, were also important contributors at a time in which higher-yielding countries generally outperformed. In Europe, the fund was boosted by underweights in Russia and Poland, along with an overweight in Ukraine.
Results in Latin America were also strong, largely as a result of an overweight in Argentina. However, the fund lost some ground by being overweight in Venezuela, whose sovereign debt fell
QUALITY COMPOSITION AS OF 1/31/18 (%)
The fund's positions in corporate bonds added value, especially energy-related issues such as Tullow Oil PLC (which we sold before the close of the period) and Petrobras Global Finance BV.
The fund's position in local currency emerging-market debt contributed positively to relative performance, as well. We chose to reduce the size of this allocation in January to take advantage of the category's strong returns.
What other changes did you make in the emerging-market portfolio?
We continued to rotate the portfolio out of certain countries and securities that performed well in order to capitalize on better values elsewhere in the market. For instance, we reduced the size of the fund's allocations to Azerbaijan and Brazil. We redeployed some of the proceeds to Turkey, which we later reduced after the market rallied, and to Ecuador, where we saw favorable developments on the political front.
What aspects of the fund's approach in high yield had the largest impact on results?
Individual security selection was the primary contributor, with the best results occurring in the utilities, energy, chemicals, and technology industries. The fund's position in term loans was a further contributor, as the bonds' adjustable-rate feature fueled demand at a time of rising interest rates. However, the fund gave back some ground through its industry allocations, particularly an overweight in cable/media and an underweight in mining.
How would you characterize the fund's positioning in high yield?
We continued to emphasize individual security selection, with a focus on bonds that stand to benefit from positive industry or company-specific trends. We think this is a more prudent strategy
TOP 10 ISSUERS AS OF 1/31/18 (%)
Republic of Argentina | 3.6 |
Republic of Turkey | 3.1 |
Republic of Ukraine | 3.0 |
Petroleos Mexicanos | 2.5 |
Government of Russia | 2.5 |
Republic of Iraq | 2.2 |
Republic of Ecuador | 1.9 |
Republic of Indonesia | 1.7 |
Government of Dominican Republic | 1.7 |
Republic of Colombia | 1.4 |
TOTAL | 23.6 |
As a percentage of net assets. | |
Cash and cash equivalents are not included. |
Higher-risk segments of the global fixed-income market have outperformed over the past two years, but it looks as though volatility could reassert itself in 2018 given the lower level of yield spreads and the likelihood that the U.S. Federal Reserve will further tighten monetary policy. We believe our emphasis on country- and security-specific opportunities—and our corresponding efforts to mitigate risk—can continue to add value in this environment.
MANAGED BY
The Global Income Fund is managed by a five person team at Stone Harbor Investment Partners LP. |
COUNTRY COMPOSITION AS OF 1/31/18 (%)
United States | 43.9 |
Argentina | 3.9 |
Mexico | 3.8 |
Brazil | 3.5 |
Turkey | 3.3 |
Ukraine | 3.0 |
Russia | 2.9 |
Indonesia | 2.5 |
Iraq | 2.2 |
Ecuador | 2.1 |
Other countries | 28.9 |
TOTAL | 100.0 |
As a percentage of net assets. |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day yield (%) subsidized | SEC 30-day yield (%) unsubsidized1 | ||||||||
1-year | 5-year | Since inception2 | 6-month | 5-year | Since inception2 | as of 1-31-18 | as of 1-31-18 | ||||
Class A | 3.56 | 2.63 | 5.48 | -0.77 | 13.85 | 55.28 | 4.10 | 4.04 | |||
Class I3 | 8.29 | 3.78 | 6.33 | 3.55 | 20.37 | 65.85 | 4.54 | 4.48 | |||
Class R63, 4 | 8.04 | 3.50 | 6.03 | 3.56 | 18.75 | 62.04 | 4.63 | 4.56 | |||
Class NAV3 | 8.29 | 3.92 | 6.45 | 3.60 | 21.20 | 67.49 | 4.64 | 4.58 | |||
Index 1† | 10.86 | 4.81 | 7.66 | 3.72 | 26.47 | 83.81 | — | — | |||
Index 2† | 7.69 | 5.28 | 7.85 | 2.43 | 29.33 | 86.54 | — | — |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charge on Class A shares of 4.0%. The returns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 4.5% to 4.0%, effective 2-3-14. Sales charges are not applicable to Class I and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until November 30, 2017 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class I | Class R6* | Class NAV | |
Gross (%) | 1.25 | 1.00 | 0.91 | 0.89 |
Net (%) | 1.20 | 0.95 | 0.86 | 0.84 |
*Expenses have been estimated for the first year of operations of the fund's Class R6 shares.
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index 1 is the ICE Bank of America Merrill Lynch Global High Yield and Emerging Markets Plus Index; Index 2 is 50% ICE Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index and 50% JPMorgan EMBI Global Diversified Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Global Income Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in a separate index and a blended index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index 1 ($) | Index 2 ($) | |
Class I3 | 11-2-09 | 16,585 | 16,585 | 18,381 | 18,654 |
Class R63, 4 | 11-2-09 | 16,204 | 16,204 | 18,381 | 18,654 |
Class NAV3 | 11-2-09 | 16,749 | 16,749 | 18,381 | 18,654 |
The values shown in the chart for Class A with maximum sales charge have been adjusted to reflect the reduction in the Class A maximum sales charge from 4.5% to 4.0%, which became effective on 2-3-14.
The ICE Bank of America Merrill Lynch Global High Yield and Emerging Markets Plus Index tracks the performance of the below and border-line investment-grade global debt markets denominated in the major developed market currencies.
The blended index is 50% ICE Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index and 50% JPMorgan EMBI Global Diversified Index.
The ICE Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index is an unmanaged index consisting of U.S. dollar-denominated public corporate issues with par amounts greater than $100 million that are rated below investment grade.
The JPMorgan EMBI Global Diversified Index is an unmanaged index consisting of traded external debt instruments in the emerging markets, with an outstanding face value of at least $500 million, limiting the weight of index countries with larger debt stocks to maintain diversification.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | Unsubsidized yield reflects what the yield would have been without the effect of reimbursements and waivers. |
2 | From 11-2-09. |
3 | For certain types of investors as described in the fund's prospectuses. |
4 | Class R6 shares were first offered on 8-30-17. Returns prior to this date are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,034.10 | $6.31 | 1.23% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.00 | 6.26 | 1.23% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,035.50 | 5.03 | 0.98% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.30 | 4.99 | 0.98% | |
Class R62 | Actual expenses/actual returns | 1,000.00 | 1,029.20 | 3.81 | 0.89% |
Hypothetical example for comparison purposes | 1,000.00 | 1,017.30 | 4.48 | 0.89% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,036.00 | 4.46 | 0.87% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.80 | 4.43 | 0.87% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
2 | The inception date for Class R6 shares is 8-30-17. Expenses are equal to the fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 154/365 (to reflect the period). |
Fund’s investments |
Rate (%) | Maturity date | Par value^ | Value | ||
Foreign government obligations 38.9% | $102,208,195 | ||||
(Cost $99,250,755) | |||||
Angola 0.2% | 479,795 | ||||
Republic of Angola Bond (6 month LIBOR + 7.500%) (A) | 9.344 | 07-01-23 | 444,769 | 479,795 | |
Argentina 3.6% | 9,578,948 | ||||
Provincia del Chaco Bond | 9.375 | 08-18-24 | 247,000 | 254,776 | |
Republic of Argentina | |||||
Bond | 2.260 | 12-31-38 | EUR | 4,993,000 | 4,473,268 |
Bond | 5.875 | 01-11-28 | 420,000 | 408,660 | |
Bond | 6.625 | 07-06-28 | 52,000 | 53,144 | |
Bond | 7.820 | 12-31-33 | EUR | 3,077,426 | 4,389,100 |
Azerbaijan 0.4% | 1,080,036 | ||||
Republic of Azerbaijan | |||||
Bond (B) | 4.750 | 03-18-24 | 490,000 | 510,335 | |
Bond | 4.750 | 03-18-24 | 547,000 | 569,701 | |
Bahrain 0.2% | 564,265 | ||||
Kingdom of Bahrain Bond (B) | 7.000 | 10-12-28 | 554,000 | 564,265 | |
Brazil 1.7% | 4,356,647 | ||||
Brazil Minas SPE Bond | 5.333 | 02-15-28 | 3,122,000 | 3,168,830 | |
Federative Republic of Brazil | |||||
Bond | 5.000 | 01-27-45 | 681,000 | 630,947 | |
Bond | 10.000 | 01-01-27 | BRL | 1,730,000 | 556,870 |
Cameroon 0.4% | 1,110,963 | ||||
Republic of Cameroon Bond (B) | 9.500 | 11-19-25 | 937,000 | 1,110,963 | |
Colombia 1.4% | 3,758,482 | ||||
Republic of Colombia | |||||
Bond | 4.000 | 02-26-24 | 1,032,000 | 1,062,960 | |
Bond | 4.500 | 01-28-26 | 1,111,000 | 1,178,771 | |
Bond | 5.000 | 06-15-45 | 855,000 | 899,460 | |
Bond | 10.375 | 01-28-33 | 391,000 | 617,291 | |
Costa Rica 1.0% | 2,524,470 | ||||
Republic of Costa Rica | |||||
Bond | 4.250 | 01-26-23 | 1,297,000 | 1,258,090 | |
Bond (B) | 5.625 | 04-30-43 | 86,000 | 77,830 | |
Bond (B) | 7.000 | 04-04-44 | 182,000 | 190,645 | |
Bond | 7.158 | 03-12-45 | 937,000 | 997,905 |
12 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Croatia 0.5% | $1,256,235 | ||||
Republic of Croatia Bond (B) | 5.500 | 04-04-23 | 1,153,000 | 1,256,235 | |
Dominican Republic 1.7% | 4,345,776 | ||||
Government of Dominican Republic | |||||
Bond | 5.500 | 01-27-25 | 473,000 | 494,285 | |
Bond (B) | 5.875 | 04-18-24 | 244,000 | 261,080 | |
Bond | 6.600 | 01-28-24 | 1,368,000 | 1,518,480 | |
Bond | 6.875 | 01-29-26 | 753,000 | 852,773 | |
Bond (B) | 7.450 | 04-30-44 | 1,031,000 | 1,219,158 | |
Ecuador 1.9% | 4,902,317 | ||||
Republic of Ecuador | |||||
Bond (B) | 7.875 | 01-23-28 | 1,382,000 | 1,403,421 | |
Bond | 7.950 | 06-20-24 | 1,480,000 | 1,565,100 | |
Bond (B) | 8.875 | 10-23-27 | 1,287,000 | 1,401,221 | |
Bond (B) | 9.650 | 12-13-26 | 200,000 | 228,000 | |
Bond (B) | 10.750 | 03-28-22 | 262,000 | 304,575 | |
Egypt 0.7% | 1,876,652 | ||||
Arab Republic of Egypt | |||||
Bond | 6.125 | 01-31-22 | 885,000 | 937,021 | |
Bond (B) | 7.500 | 01-31-27 | 234,000 | 261,495 | |
Bond (B) | 8.500 | 01-31-47 | 592,000 | 678,136 | |
El Salvador 0.7% | 1,696,086 | ||||
Republic of El Salvador | |||||
Bond | 5.875 | 01-30-25 | 532,000 | 533,330 | |
Bond | 7.375 | 12-01-19 | 283,000 | 297,150 | |
Bond | 7.625 | 02-01-41 | 168,000 | 184,380 | |
Bond | 8.250 | 04-10-32 | 501,000 | 582,413 | |
Bond (B) | 8.250 | 04-10-32 | 85,000 | 98,813 | |
Gabon 0.7% | 1,717,981 | ||||
Republic of Gabon | |||||
Bond | 6.375 | 12-12-24 | 527,000 | 532,743 | |
Bond (B) | 6.375 | 12-12-24 | 92,000 | 92,938 | |
Bond (B) | 6.950 | 06-16-25 | 1,058,000 | 1,092,300 | |
Georgia 0.1% | 374,899 | ||||
Republic of Georgia Bond (B) | 6.875 | 04-12-21 | 343,000 | 374,899 | |
Ghana 0.6% | 1,528,501 | ||||
Republic of Ghana | |||||
Bond | 8.125 | 01-18-26 | 400,000 | 441,346 | |
Bond | 10.750 | 10-14-30 | 798,000 | 1,087,155 | |
Honduras 0.2% | 446,692 | ||||
Republic of Honduras Bond (B) | 6.250 | 01-19-27 | 416,000 | 446,692 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 13 |
Rate (%) | Maturity date | Par value^ | Value | ||
Indonesia 1.7% | $4,446,008 | ||||
Republic of Indonesia | |||||
Bond (B) | 3.850 | 07-18-27 | 495,000 | 502,847 | |
Bond | 4.125 | 01-15-25 | 446,000 | 459,008 | |
Bond | 4.750 | 01-08-26 | 1,857,000 | 1,985,053 | |
Bond | 5.250 | 01-17-42 | 285,000 | 313,111 | |
Bond | 5.375 | 10-17-23 | 400,000 | 440,535 | |
Bond | 6.750 | 01-15-44 | 158,000 | 208,030 | |
Bond | 8.250 | 06-15-32 | IDR | 6,386,000,000 | 537,424 |
Iraq 2.2% | 5,836,560 | ||||
Republic of Iraq | |||||
Bond | 5.800 | 01-15-28 | 4,240,000 | 4,194,937 | |
Bond (B) | 6.752 | 03-09-23 | 1,580,000 | 1,641,623 | |
Ivory Coast 1.0% | 2,599,862 | ||||
Republic of Ivory Coast | |||||
Bond (B) | 5.125 | 06-15-25 | EUR | 390,000 | 527,214 |
Bond (B) | 5.375 | 07-23-24 | 404,000 | 410,060 | |
Bond (B) | 6.125 | 06-15-33 | 745,000 | 762,308 | |
Bond | 6.125 | 06-15-33 | 394,000 | 403,461 | |
Bond | 6.375 | 03-03-28 | 468,000 | 496,819 | |
Jordan 0.3% | 882,833 | ||||
Kingdom of Jordan | |||||
Bond (B) | 5.750 | 01-31-27 | 222,000 | 223,471 | |
Bond | 5.750 | 01-31-27 | 228,000 | 229,511 | |
Bond | 7.375 | 10-10-47 | 400,000 | 429,851 | |
Kenya 0.3% | 897,539 | ||||
Republic of Kenya Bond (B) | 6.875 | 06-24-24 | 852,000 | 897,539 | |
Lebanon 0.7% | 1,940,786 | ||||
Republic of Lebanon | |||||
Bond | 6.100 | 10-04-22 | 413,000 | 412,450 | |
Bond | 6.375 | 03-09-20 | 948,000 | 958,515 | |
Bond | 6.750 | 11-29-27 | 259,000 | 253,312 | |
Bond | 6.850 | 03-23-27 | 320,000 | 316,509 | |
Mexico 0.4% | 962,897 | ||||
Government of Mexico | |||||
Bond | 3.750 | 01-11-28 | 687,000 | 673,947 | |
Bond | 10.000 | 12-05-24 | MXN | 4,749,500 | 288,950 |
Montenegro 0.1% | 295,622 | ||||
Republic of Montenegro Bond (B) | 5.750 | 03-10-21 | EUR | 215,000 | 295,622 |
Nigeria 0.8% | 2,070,319 | ||||
Federal Republic of Nigeria | |||||
Bond (B) | 6.375 | 07-12-23 | 193,000 | 205,120 | |
Bond (B) | 6.500 | 11-28-27 | 1,015,000 | 1,053,144 |
14 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Nigeria (continued) | |||||
Bond (B) | 7.625 | 11-28-47 | 423,000 | $451,872 | |
Bond (B) | 7.875 | 02-16-32 | 319,000 | 360,183 | |
Oman 1.3% | 3,433,887 | ||||
Sultanate of Oman | |||||
Bond | 3.625 | 06-15-21 | 770,000 | 764,449 | |
Bond (B) | 4.125 | 01-17-23 | 412,000 | 406,422 | |
Bond (B) | 5.375 | 03-08-27 | 432,000 | 432,861 | |
Bond (B) | 5.625 | 01-17-28 | 412,000 | 414,855 | |
Bond (B) | 6.500 | 03-08-47 | 1,417,000 | 1,415,300 | |
Panama 0.6% | 1,681,045 | ||||
Republic of Panama | |||||
Bond | 6.700 | 01-26-36 | 493,000 | 648,788 | |
Bond | 8.125 | 04-28-34 | 330,000 | 456,225 | |
Bond | 9.375 | 04-01-29 | 383,000 | 576,032 | |
Paraguay 0.3% | 751,765 | ||||
Republic of Paraguay Bond (B) | 6.100 | 08-11-44 | 658,000 | 751,765 | |
Peru 0.4% | 1,055,835 | ||||
Republic of Peru Bond | 6.550 | 03-14-37 | 790,000 | 1,055,835 | |
Qatar 0.5% | 1,353,667 | ||||
Government of Qatar | |||||
Bond (B) | 3.250 | 06-02-26 | 134,000 | 127,661 | |
Bond (B) | 4.500 | 01-20-22 | 1,181,000 | 1,226,006 | |
Russia 2.5% | 6,486,192 | ||||
Government of Russia | |||||
Bond | 4.250 | 06-23-27 | 1,600,000 | 1,640,638 | |
Bond | 4.750 | 05-27-26 | 800,000 | 850,900 | |
Bond | 5.250 | 06-23-47 | 1,200,000 | 1,261,813 | |
Bond | 5.625 | 04-04-42 | 400,000 | 447,885 | |
Bond | 6.400 | 05-27-20 | RUB | 43,590,000 | 769,716 |
Bond | 7.400 | 12-07-22 | RUB | 44,310,000 | 808,753 |
Bond | 8.150 | 02-03-27 | RUB | 37,000,000 | 706,487 |
Senegal 0.4% | 1,096,855 | ||||
Republic of Senegal Bond (B) | 6.250 | 05-23-33 | 1,049,000 | 1,096,855 | |
South Africa 1.1% | 2,907,408 | ||||
Republic of South Africa | |||||
Bond | 4.665 | 01-17-24 | 640,000 | 655,414 | |
Bond | 4.875 | 04-14-26 | 520,000 | 531,648 | |
Bond | 5.875 | 09-16-25 | 1,080,000 | 1,177,740 | |
Bond | 6.250 | 03-31-36 | ZAR | 8,800,000 | 542,606 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
Sri Lanka 0.3% | $662,823 | ||||
Republic of Sri Lanka Bond (B) | 6.850 | 11-03-25 | 606,000 | 662,823 | |
Turkey 3.1% | 8,251,093 | ||||
Republic of Turkey | |||||
Bond | 3.250 | 03-23-23 | 1,529,000 | 1,445,303 | |
Bond | 5.750 | 03-22-24 | 420,000 | 442,790 | |
Bond | 5.750 | 05-11-47 | 1,903,000 | 1,806,899 | |
Bond | 6.000 | 03-25-27 | 1,757,000 | 1,846,607 | |
Bond | 6.625 | 02-17-45 | 644,000 | 681,893 | |
Bond | 6.875 | 03-17-36 | 627,000 | 689,755 | |
Bond | 7.000 | 03-11-19 | 404,000 | 420,378 | |
Bond | 7.100 | 03-08-23 | TRY | 2,364,000 | 521,211 |
Bond | 7.375 | 02-05-25 | 346,000 | 396,257 | |
Ukraine 3.0% | 7,980,896 | ||||
Republic of Ukraine | |||||
Bond (B) | 7.375 | 09-25-32 | 2,865,000 | 2,907,236 | |
Bond (B) | 7.750 | 09-01-24 | 1,288,000 | 1,393,719 | |
Bond | 7.750 | 09-01-24 | 632,000 | 683,897 | |
Bond (B) | 7.750 | 09-01-26 | 274,000 | 292,835 | |
Bond | 7.750 | 09-01-26 | 200,000 | 213,748 | |
Bond (B) | 7.750 | 09-01-27 | 1,255,000 | 1,339,913 | |
GDP-Linked Bond (C) | 2.344* | 05-31-40 | 1,694,000 | 1,149,548 | |
Uruguay 1.1% | 2,988,325 | ||||
Republic of Uruguay Bond | 4.375 | 10-27-27 | 2,297,000 | 2,440,563 | |
Republica Orient Uruguay Bond | 9.875 | 06-20-22 | UYU | 15,000,000 | 547,762 |
Venezuela 0.5% | 1,222,796 | ||||
Republic of Venezuela | |||||
Bond (D) | 7.750 | 10-13-19 | 3,664,600 | 952,796 | |
Bond (D) | 9.375 | 01-13-34 | 1,000,000 | 270,000 | |
Zambia 0.3% | 804,437 | ||||
Republic of Zambia | |||||
Bond (B) | 5.375 | 09-20-22 | 89,000 | 86,613 | |
Bond (B) | 8.500 | 04-14-24 | 655,000 | 717,824 | |
Corporate bonds 50.4% | $132,315,714 | ||||
(Cost $132,722,234) | |||||
Argentina 0.3% | 719,361 | ||||
Pampa Energia SA (B) | 7.375 | 07-21-23 | 242,000 | 261,612 | |
Pampa Energia SA (B) | 7.500 | 01-24-27 | 292,000 | 318,645 | |
Rio Energy SA (B) | 6.875 | 02-01-25 | 138,000 | 139,104 | |
Austria 0.0% | 97,000 | ||||
ESAL GmbH (B) | 6.250 | 02-05-23 | 100,000 | 97,000 |
16 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Azerbaijan 0.5% | $1,224,214 | ||||
State Oil Company of the Azerbaijan Republic | 4.750 | 03-13-23 | 841,000 | 860,147 | |
State Oil Company of the Azerbaijan Republic | 6.950 | 03-18-30 | 316,000 | 364,067 | |
Bermuda 0.1% | 310,783 | ||||
Geopark, Ltd. (B) | 6.500 | 09-21-24 | 301,000 | 310,783 | |
Brazil 1.8% | 4,739,760 | ||||
Brazil Loan Trust 1 | 5.477 | 07-24-23 | 159,753 | 167,023 | |
Brazil Loan Trust 1 (B) | 5.477 | 07-24-23 | 1,074,033 | 1,122,913 | |
Petrobras Global Finance BV (B) | 5.999 | 01-27-28 | 270,000 | 272,700 | |
Petrobras Global Finance BV | 6.250 | 03-17-24 | 752,000 | 802,760 | |
Petrobras Global Finance BV | 7.375 | 01-17-27 | 555,000 | 615,578 | |
Petrobras Global Finance BV | 8.750 | 05-23-26 | 1,462,000 | 1,758,786 | |
Canada 1.1% | 2,824,418 | ||||
Cascades, Inc. (B) | 5.500 | 07-15-22 | 945,000 | 963,900 | |
Mercer International, Inc. (B) | 5.500 | 01-15-26 | 440,000 | 445,500 | |
Mercer International, Inc. | 7.750 | 12-01-22 | 158,000 | 168,180 | |
Norbord, Inc. (B) | 6.250 | 04-15-23 | 540,000 | 585,900 | |
Quebecor Media, Inc. | 5.750 | 01-15-23 | 625,000 | 660,938 | |
Cayman Islands 0.1% | 369,000 | ||||
Gol Finance, Inc. (B) | 7.000 | 01-31-25 | 369,000 | 369,000 | |
Chile 0.1% | 169,319 | ||||
Banco del Estado de Chile (B) | 3.875 | 02-08-22 | 164,000 | 169,319 | |
China 1.0% | 2,525,991 | ||||
Industrial & Commercial Bank of China, Ltd. (5 Year CMT + 4.382%) (A)(E) | 6.000 | 12-10-19 | 657,000 | 679,813 | |
Sinopec Group Overseas Development 2014, Ltd. | 4.375 | 04-10-24 | 1,414,000 | 1,472,629 | |
Three Gorges Finance I Cayman Islands, Ltd. (B) | 3.150 | 06-02-26 | 389,000 | 373,549 | |
Costa Rica 0.2% | 499,550 | ||||
Banco Nacional de Costa Rica (B) | 5.875 | 04-25-21 | 485,000 | 499,550 | |
Ecuador 0.2% | 648,124 | ||||
Petroamazonas EP (B) | 4.625 | 02-16-20 | 253,000 | 248,446 | |
Petroamazonas EP (B) | 4.625 | 11-06-20 | 411,000 | 399,678 | |
France 0.1% | 285,831 | ||||
SFR Group SA (B) | 7.375 | 05-01-26 | 290,000 | 285,831 | |
Germany 0.1% | 384,163 | ||||
Unitymedia GmbH (B) | 6.125 | 01-15-25 | 365,000 | 384,163 | |
Indonesia 0.8% | 2,179,663 | ||||
Indo Energy Finance II BV | 6.375 | 01-24-23 | 110,000 | 111,774 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
Indonesia (continued) | |||||
Pertamina Persero PT | 6.450 | 05-30-44 | 1,180,000 | $1,402,419 | |
Perusahaan Listrik Negara PT | 5.250 | 10-24-42 | 650,000 | 665,470 | |
Ireland 0.5% | 1,376,175 | ||||
Ardagh Packaging Finance PLC (B) | 6.000 | 02-15-25 | 600,000 | 619,500 | |
Mallinckrodt International Finance SA (B) | 5.625 | 10-15-23 | 885,000 | 756,675 | |
Italy 0.3% | 707,944 | ||||
Wind Tre SpA (B) | 5.000 | 01-20-26 | 780,000 | 707,944 | |
Jamaica 0.1% | 186,615 | ||||
Digicel Group, Ltd. (B) | 7.125 | 04-01-22 | 198,000 | 186,615 | |
Kazakhstan 0.8% | 1,963,530 | ||||
KazAgro National Management Holding JSC (B) | 4.625 | 05-24-23 | 402,000 | 409,115 | |
KazMunayGas National Company JSC (B) | 6.375 | 04-09-21 | 501,000 | 541,968 | |
KazMunayGas National Company JSC | 7.000 | 05-05-20 | 247,000 | 265,435 | |
KazTransGas JSC (B) | 4.375 | 09-26-27 | 745,000 | 747,012 | |
Luxembourg 1.4% | 3,664,817 | ||||
Adecoagro SA (B) | 6.000 | 09-21-27 | 275,000 | 270,603 | |
Cosan Luxembourg SA (B) | 7.000 | 01-20-27 | 230,000 | 248,814 | |
Dana Financing Luxembourg Sarl (B) | 6.500 | 06-01-26 | 995,000 | 1,075,844 | |
Intelsat Jackson Holdings SA | 5.500 | 08-01-23 | 770,000 | 604,450 | |
Minerva Luxembourg SA (B) | 6.500 | 09-20-26 | 398,000 | 400,866 | |
Rumo Luxembourg Sarl (B) | 7.375 | 02-09-24 | 163,000 | 177,874 | |
Trinseo Materials Operating SCA (B) | 5.375 | 09-01-25 | 865,000 | 886,366 | |
Malaysia 1.2% | 3,019,381 | ||||
1MDB Global Investments, Ltd. | 4.400 | 03-09-23 | 3,100,000 | 3,019,381 | |
Mexico 3.4% | 8,896,430 | ||||
Axtel SAB de CV (B) | 6.375 | 11-14-24 | 296,000 | 307,100 | |
Banco Nacional de Comercio Exterior SNC (3.800% to 8-11-21, then 5 Year CMT + 3.000%) (B) | 3.800 | 08-11-26 | 758,000 | 756,105 | |
Banco Nacional de Comercio Exterior SNC (3.800% to 8-11-21, then 5 Year CMT + 3.000%) | 3.800 | 08-11-26 | 857,000 | 854,858 | |
Comision Federal de Electricidad (B) | 4.875 | 01-15-24 | 295,000 | 309,013 | |
Petroleos Mexicanos | 4.500 | 01-23-26 | 191,000 | 188,135 | |
Petroleos Mexicanos | 5.625 | 01-23-46 | 981,000 | 902,520 | |
Petroleos Mexicanos | 6.375 | 02-04-21 | 1,235,000 | 1,340,593 | |
Petroleos Mexicanos (B) | 6.500 | 03-13-27 | 181,000 | 197,743 | |
Petroleos Mexicanos | 6.500 | 03-13-27 | 370,000 | 404,225 | |
Petroleos Mexicanos | 6.750 | 09-21-47 | 92,000 | 96,370 | |
Petroleos Mexicanos (B) | 6.750 | 09-21-47 | 1,689,000 | 1,769,228 | |
Petroleos Mexicanos | 6.875 | 08-04-26 | 1,156,000 | 1,310,326 | |
Petroleos Mexicanos | 7.470 | 11-12-26 | MXN | 5,380,000 | 252,876 |
18 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Mexico (continued) | |||||
Petroleos Mexicanos | 9.500 | 09-15-27 | 154,000 | $207,338 | |
Netherlands 0.9% | 2,341,830 | ||||
IHS Netherlands Holdco BV (B) | 9.500 | 10-27-21 | 307,000 | 327,344 | |
Marfrig Holdings Europe BV (B) | 8.000 | 06-08-23 | 232,000 | 242,672 | |
UPC Holding BV (B) | 5.500 | 01-15-28 | 380,000 | 364,564 | |
UPCB Finance IV, Ltd. (B) | 5.375 | 01-15-25 | 710,000 | 722,425 | |
Ziggo Secured Finance BV (B) | 5.500 | 01-15-27 | 690,000 | 684,825 | |
Russia 0.4% | 1,149,775 | ||||
Sberbank of Russia (5.500% to 2-26-19, then 5 Year CMT + 4.023%) (B) | 5.500 | 02-26-24 | 1,130,000 | 1,149,775 | |
Singapore 0.1% | 306,315 | ||||
Eterna Capital Pte, Ltd. (6.000% Cash or PIK) | 6.000 | 12-11-22 | 254,000 | 274,955 | |
Indika Energy Capital II Pte, Ltd. (B) | 6.875 | 04-10-22 | 30,000 | 31,360 | |
Thailand 0.1% | 294,348 | ||||
PTTEP Treasury Center Company, Ltd. (4.875% to 6-18-19, then 5 Year CMT + 3.177%) (B)(E) | 4.875 | 06-18-19 | 292,000 | 294,348 | |
Turkey 0.2% | 566,631 | ||||
Turkiye Garanti Bankasi AS (6.125% to 5-24-22, then 5 Year U.S. Swap Rate + 4.220%) (B) | 6.125 | 05-24-27 | 396,000 | 396,313 | |
Turkiye Is Bankasi AS (7.000% to 6-29-23, then 5 Year U.S. Swap Rate + 5.117%) (B) | 7.000 | 06-29-28 | 169,000 | 170,318 | |
United Kingdom 0.7% | 1,801,748 | ||||
Ensco PLC | 7.750 | 02-01-26 | 625,000 | 621,484 | |
MARB BondCo PLC (B) | 6.875 | 01-19-25 | 166,000 | 163,510 | |
Vedanta Resources PLC (B) | 6.125 | 08-09-24 | 349,000 | 352,129 | |
Virgin Media Finance PLC (B) | 6.000 | 10-15-24 | 650,000 | 664,625 | |
United States 33.5% | 87,951,330 | ||||
AECOM | 5.125 | 03-15-27 | 700,000 | 700,875 | |
AK Steel Corp. | 7.000 | 03-15-27 | 535,000 | 547,038 | |
Albertsons Companies LLC | 6.625 | 06-15-24 | 460,000 | 437,000 | |
Allison Transmission, Inc. (B) | 4.750 | 10-01-27 | 555,000 | 552,225 | |
AMC Entertainment Holdings, Inc. (F) | 5.750 | 06-15-25 | 935,000 | 911,625 | |
AMC Networks, Inc. | 4.750 | 08-01-25 | 600,000 | 599,250 | |
American Woodmark Corp. (B) | 4.875 | 03-15-26 | 335,000 | 337,513 | |
Axalta Coating Systems LLC (B) | 4.875 | 08-15-24 | 325,000 | 335,563 | |
B&G Foods, Inc. | 5.250 | 04-01-25 | 460,000 | 460,575 | |
Beacon Escrow Corp. (B) | 4.875 | 11-01-25 | 275,000 | 273,625 | |
Berry Global, Inc. (B) | 4.500 | 02-15-26 | 270,000 | 269,244 | |
Block Communications, Inc. (B) | 6.875 | 02-15-25 | 1,050,000 | 1,092,000 | |
Boise Cascade Company (B) | 5.625 | 09-01-24 | 745,000 | 778,525 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Boyd Gaming Corp. | 6.375 | 04-01-26 | 360,000 | $386,100 | |
BWAY Holding Company (B) | 7.250 | 04-15-25 | 400,000 | 417,500 | |
Cablevision Systems Corp. | 5.875 | 09-15-22 | 1,500,000 | 1,515,000 | |
Callon Petroleum Company | 6.125 | 10-01-24 | 490,000 | 508,375 | |
Calpine Corp. | 5.750 | 01-15-25 | 1,080,000 | 1,023,300 | |
CCO Holdings LLC (B) | 5.125 | 05-01-27 | 715,000 | 696,424 | |
CCO Holdings LLC (B) | 5.500 | 05-01-26 | 860,000 | 877,200 | |
CenturyLink, Inc. (F) | 5.625 | 04-01-25 | 460,000 | 424,925 | |
CF Industries, Inc. | 5.150 | 03-15-34 | 1,140,000 | 1,149,950 | |
Chobani LLC (B) | 7.500 | 04-15-25 | 465,000 | 492,900 | |
Cinemark USA, Inc. | 4.875 | 06-01-23 | 820,000 | 830,250 | |
Coeur Mining, Inc. | 5.875 | 06-01-24 | 795,000 | 791,025 | |
Commercial Metals Company | 5.375 | 07-15-27 | 465,000 | 477,788 | |
Community Health Systems, Inc. | 6.250 | 03-31-23 | 1,060,000 | 980,500 | |
Continental Resources, Inc. | 4.900 | 06-01-44 | 840,000 | 837,900 | |
Continental Resources, Inc. | 5.000 | 09-15-22 | 615,000 | 622,688 | |
Cott Holdings, Inc. (B) | 5.500 | 04-01-25 | 525,000 | 534,844 | |
Covanta Holding Corp. | 5.875 | 07-01-25 | 850,000 | 864,875 | |
Crown Americas LLC (B) | 4.750 | 02-01-26 | 550,000 | 554,125 | |
Dean Foods Company (B) | 6.500 | 03-15-23 | 555,000 | 549,450 | |
Diamondback Energy, Inc. | 4.750 | 11-01-24 | 680,000 | 689,350 | |
Diamondback Energy, Inc. (B) | 5.375 | 05-31-25 | 190,000 | 197,363 | |
DISH DBS Corp. | 7.750 | 07-01-26 | 2,015,000 | 2,070,413 | |
Dynegy, Inc. (B) | 8.000 | 01-15-25 | 1,080,000 | 1,174,500 | |
Dynegy, Inc. (B) | 8.125 | 01-30-26 | 360,000 | 397,008 | |
Eldorado Resorts, Inc. | 6.000 | 04-01-25 | 425,000 | 443,594 | |
Encompass Health Corp. | 5.750 | 11-01-24 | 660,000 | 673,200 | |
Endo Finance LLC (B) | 6.000 | 02-01-25 | 745,000 | 560,151 | |
Energizer Holdings, Inc. (B) | 5.500 | 06-15-25 | 785,000 | 804,625 | |
Entegris, Inc. (B) | 4.625 | 02-10-26 | 655,000 | 657,456 | |
Envision Healthcare Corp. | 5.625 | 07-15-22 | 610,000 | 620,675 | |
Envision Healthcare Corp. (B) | 6.250 | 12-01-24 | 320,000 | 338,800 | |
EP Energy LLC | 6.375 | 06-15-23 | 905,000 | 604,088 | |
EP Energy LLC (B) | 8.000 | 02-15-25 | 415,000 | 327,850 | |
EP Energy LLC | 9.375 | 05-01-20 | 255,000 | 242,888 | |
Flex Acquisition Company, Inc. (B) | 6.875 | 01-15-25 | 385,000 | 395,106 | |
Frontier Communications Corp. | 9.000 | 08-15-31 | 1,419,000 | 925,898 | |
FTS International, Inc. | 6.250 | 05-01-22 | 450,000 | 454,500 | |
Gates Global LLC (B) | 6.000 | 07-15-22 | 705,000 | 720,863 | |
GenOn Energy, Inc. (D) | 9.500 | 10-15-18 | 1,305,000 | 1,060,313 | |
Golden Nugget, Inc. (B) | 6.750 | 10-15-24 | 580,000 | 599,575 | |
Griffon Corp. (B) | 5.250 | 03-01-22 | 335,000 | 340,863 | |
Griffon Corp. | 5.250 | 03-01-22 | 725,000 | 737,688 | |
HCA, Inc. | 5.250 | 06-15-26 | 340,000 | 355,572 | |
HCA, Inc. | 5.375 | 02-01-25 | 710,000 | 725,975 | |
Hologic, Inc. (B) | 4.375 | 10-15-25 | 365,000 | 365,000 |
20 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Hughes Satellite Systems Corp. | 6.625 | 08-01-26 | 515,000 | $544,613 | |
Jacobs Entertainment, Inc. (B) | 7.875 | 02-01-24 | 655,000 | 713,950 | |
JC Penney Corp., Inc. | 7.400 | 04-01-37 | 635,000 | 457,200 | |
Kaiser Aluminum Corp. | 5.875 | 05-15-24 | 645,000 | 688,538 | |
Laredo Petroleum, Inc. | 5.625 | 01-15-22 | 640,000 | 648,000 | |
Levi Strauss & Company | 5.000 | 05-01-25 | 530,000 | 548,550 | |
Louisiana-Pacific Corp. | 4.875 | 09-15-24 | 750,000 | 771,563 | |
MasTec, Inc. | 4.875 | 03-15-23 | 870,000 | 883,050 | |
Matthews International Corp. (B) | 5.250 | 12-01-25 | 630,000 | 639,450 | |
MGM Growth Properties Operating Partnership LP | 4.500 | 09-01-26 | 565,000 | 557,938 | |
MGM Resorts International | 4.625 | 09-01-26 | 500,000 | 505,000 | |
Murphy Oil Corp. | 3.700 | 12-01-22 | 335,000 | 336,256 | |
Murphy Oil Corp. | 6.875 | 08-15-24 | 415,000 | 443,286 | |
Nabors Industries, Inc. (F) | 5.500 | 01-15-23 | 865,000 | 865,000 | |
NCR Corp. | 5.000 | 07-15-22 | 325,000 | 331,598 | |
Nexstar Broadcasting, Inc. (B) | 5.625 | 08-01-24 | 865,000 | 893,649 | |
NRG Energy, Inc. (B) | 5.750 | 01-15-28 | 545,000 | 545,109 | |
NRG Energy, Inc. | 6.250 | 07-15-22 | 750,000 | 777,188 | |
Nuance Communications, Inc. | 5.625 | 12-15-26 | 830,000 | 857,722 | |
Oasis Petroleum, Inc. | 6.875 | 03-15-22 | 800,000 | 824,000 | |
Park-Ohio Industries, Inc. | 6.625 | 04-15-27 | 715,000 | 766,623 | |
PetSmart, Inc. (B) | 7.125 | 03-15-23 | 480,000 | 301,800 | |
Pilgrim's Pride Corp. (B) | 5.750 | 03-15-25 | 415,000 | 419,150 | |
Pilgrim's Pride Corp. (B) | 5.875 | 09-30-27 | 230,000 | 230,575 | |
Pinnacle Entertainment, Inc. | 5.625 | 05-01-24 | 645,000 | 690,150 | |
Pinnacle Foods Finance LLC | 5.875 | 01-15-24 | 725,000 | 767,637 | |
Plastipak Holdings, Inc. (B) | 6.250 | 10-15-25 | 705,000 | 731,438 | |
Platform Specialty Products Corp. (B) | 5.875 | 12-01-25 | 580,000 | 589,425 | |
Post Holdings, Inc. (B) | 5.000 | 08-15-26 | 450,000 | 439,313 | |
Post Holdings, Inc. (B) | 5.500 | 03-01-25 | 635,000 | 654,050 | |
PTC, Inc. | 6.000 | 05-15-24 | 580,000 | 617,700 | |
QEP Resources, Inc. | 5.250 | 05-01-23 | 865,000 | 882,300 | |
Range Resources Corp. | 5.000 | 03-15-23 | 740,000 | 738,150 | |
RBS Global, Inc. (B) | 4.875 | 12-15-25 | 365,000 | 369,563 | |
Regal Entertainment Group | 5.750 | 02-01-25 | 570,000 | 584,963 | |
Revlon Consumer Products Corp. | 5.750 | 02-15-21 | 320,000 | 247,200 | |
Revlon Consumer Products Corp. (F) | 6.250 | 08-01-24 | 790,000 | 507,575 | |
Rowan Companies, Inc. (F) | 7.375 | 06-15-25 | 1,110,000 | 1,137,406 | |
RSI Home Products, Inc. (B) | 6.500 | 03-15-23 | 590,000 | 618,025 | |
RSP Permian, Inc. | 5.250 | 01-15-25 | 505,000 | 523,938 | |
Safeway, Inc. | 7.250 | 02-01-31 | 800,000 | 688,000 | |
Scientific Games International, Inc. (B) | 5.000 | 10-15-25 | 765,000 | 766,913 | |
Seagate HDD Cayman | 4.875 | 06-01-27 | 1,215,000 | 1,195,283 | |
SESI LLC | 7.125 | 12-15-21 | 700,000 | 717,500 | |
SESI LLC (B) | 7.750 | 09-15-24 | 325,000 | 349,375 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Signode Industrial Group Lux SA (B) | 6.375 | 05-01-22 | 335,000 | $348,400 | |
Sinclair Television Group, Inc. (B) | 5.625 | 08-01-24 | 910,000 | 937,300 | |
Sirius XM Radio, Inc. (B) | 5.000 | 08-01-27 | 730,000 | 724,525 | |
SM Energy Company | 5.625 | 06-01-25 | 340,000 | 336,600 | |
SM Energy Company | 6.125 | 11-15-22 | 650,000 | 675,188 | |
Southwestern Energy Company | 6.700 | 01-23-25 | 770,000 | 783,475 | |
Sprint Capital Corp. | 8.750 | 03-15-32 | 1,645,000 | 1,945,213 | |
SPX FLOW, Inc. (B) | 5.625 | 08-15-24 | 800,000 | 830,000 | |
Standard Industries, Inc. (B) | 5.375 | 11-15-24 | 400,000 | 414,000 | |
Summit Materials LLC | 6.125 | 07-15-23 | 395,000 | 407,838 | |
Symantec Corp. (B) | 5.000 | 04-15-25 | 560,000 | 571,104 | |
Targa Resources Partners LP | 4.250 | 11-15-23 | 515,000 | 508,563 | |
Team Health Holdings, Inc. (B) | 6.375 | 02-01-25 | 570,000 | 531,525 | |
TEGNA, Inc. | 6.375 | 10-15-23 | 430,000 | 449,286 | |
Tenet Healthcare Corp. (B) | 4.625 | 07-15-24 | 830,000 | 815,475 | |
The EW Scripps Company (B) | 5.125 | 05-15-25 | 505,000 | 498,688 | |
The Fresh Market, Inc. (B) | 9.750 | 05-01-23 | 750,000 | 523,125 | |
T-Mobile USA, Inc. | 5.375 | 04-15-27 | 540,000 | 567,000 | |
T-Mobile USA, Inc. | 6.500 | 01-15-26 | 600,000 | 650,250 | |
Tribune Media Company | 5.875 | 07-15-22 | 900,000 | 925,875 | |
U.S. Concrete, Inc. | 6.375 | 06-01-24 | 590,000 | 634,722 | |
Valeant Pharmaceuticals International, Inc. (B) | 5.875 | 05-15-23 | 875,000 | 790,125 | |
Valeant Pharmaceuticals International, Inc. (B) | 6.500 | 03-15-22 | 490,000 | 513,422 | |
Versum Materials, Inc. (B) | 5.500 | 09-30-24 | 795,000 | 842,700 | |
Waste Pro USA, Inc. (B) | 5.500 | 02-15-26 | 415,000 | 422,263 | |
Weight Watchers International, Inc. (B) | 8.625 | 12-01-25 | 745,000 | 797,150 | |
Welbilt, Inc. | 9.500 | 02-15-24 | 340,000 | 384,200 | |
West Corp. (B) | 8.500 | 10-15-25 | 580,000 | 571,300 | |
Western Digital Corp. (G) | 4.750 | 02-15-26 | 305,000 | 309,003 | |
Whiting Petroleum Corp. (B) | 6.625 | 01-15-26 | 610,000 | 624,488 | |
Windstream Services LLC | 7.500 | 04-01-23 | 523,000 | 332,105 | |
Wrangler Buyer Corp. (B) | 6.000 | 10-01-25 | 320,000 | 330,400 | |
Zayo Group LLC (B) | 5.750 | 01-15-27 | 930,000 | 945,159 | |
ZF North America Capital, Inc. (B) | 4.750 | 04-29-25 | 322,000 | 331,660 | |
Venezuela 0.4% | 1,111,668 | ||||
Petroleos de Venezuela SA (D) | 6.000 | 05-16-24 | 4,730,500 | 1,111,668 | |
Term loans (H) 3.3% | $8,644,119 | ||||
(Cost $8,558,296) | |||||
United States 3.3% | 8,644,119 | ||||
Air Medical Group Holdings, Inc. (3 month LIBOR + 3.250%) | 4.943 | 04-28-22 | 395,939 | 399,404 | |
Albea Beauty Holdings SA (3 and 6 month LIBOR + 3.750%) | 5.407 | 04-12-24 | 601,352 | 606,866 |
22 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Avaya, Inc. (1 month LIBOR + 4.750%) | 6.309 | 11-08-24 | 1,350,000 | $1,356,183 | |
Blount International, Inc. (1 month LIBOR + 4.250%) | 5.818 | 04-12-23 | 711,094 | 722,208 | |
Filtration Group, Inc. (1 month LIBOR + 3.000%) | 4.573 | 11-21-20 | 549,847 | 556,264 | |
Flex Acquisition Company, Inc. (3 month LIBOR + 3.000%) | 4.695 | 12-29-23 | 499,841 | 503,200 | |
Gardner Denver, Inc. (3 month LIBOR + 2.750%) | 4.443 | 07-30-24 | 548,625 | 550,995 | |
Gates Global LLC (3 month LIBOR + 3.000%) | 4.443 | 04-01-24 | 494,886 | 498,415 | |
Lightstone LLC (1 month LIBOR + 4.500%) | 6.073 | 01-30-24 | 32,248 | 32,385 | |
Lightstone LLC (1 month LIBOR + 4.500%) | 6.073 | 01-30-24 | 507,869 | 510,027 | |
MacDermid, Inc. (1 month LIBOR + 2.500%) | 4.073 | 06-07-20 | 556,999 | 560,714 | |
Navistar, Inc. (1 month LIBOR + 3.500%) | 5.060 | 11-02-24 | 930,000 | 937,366 | |
Summit Materials LLC (1 month LIBOR + 2.250%) | 3.823 | 11-11-24 | 330,000 | 332,888 | |
Vertiv Group Corp. (1 month LIBOR + 4.000%) | 5.568 | 11-30-23 | 740,941 | 748,351 | |
Welbilt, Inc. (1 month LIBOR + 2.750%) | 4.323 | 03-03-23 | 326,000 | 328,853 | |
Shares | Value | ||||
Common stocks 0.4% | $986,747 | ||||
(Cost $3,205,975) | |||||
United States 0.4% | 986,747 | ||||
Denbury Resources, Inc. (C) | 35,700 | 86,751 | |||
Gener8 Maritime, Inc. (C) | 20 | 117 | |||
Quiksilver, Inc. (C)(I) | 10,027 | 221,396 | |||
Vistra Energy Corp. (C) | 34,794 | 678,483 | |||
Rights 0.0% | $55,496 | ||||
(Cost $296,900) | |||||
Tech Corp. (Expiration Date: 12-31-49) (C)(J) | 73,994 | 55,496 | |||
Warrants 0.0% | $8,124 | ||||
(Cost $0) | |||||
Halcon Resources Corp. (Expiration Date: 9-9-20) (C)(J) | 9,862 | 7,890 | |||
Midstates Petroleum Company, Inc. (Expiration Date: 4-21-20; Strike Price $24.00) (C) | 3,117 | 234 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
Escrow certificates 0.0% | $846 | ||||
(Cost $0) | |||||
United States 0.0% | 846 | ||||
Midstates Petroleum Company, Inc. (C)(I) | 10.750 | 10-01-20 | 945,000 | 846 | |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 23 |
Yield (%) | Shares | Value | |||
Securities lending collateral 1.1% | $2,958,837 | ||||
(Cost $2,958,496) | |||||
John Hancock Collateral Trust (K) | 1.4720(L) | 295,733 | 2,958,837 | ||
Yield (%) | Maturity date | Par value^ | Value | ||
Short-term investments 6.1% | $16,026,879 | ||||
(Cost $16,028,279) | |||||
Foreign government 0.3% | 735,615 | ||||
Egypt Treasury Bill | 15.269* | 06-19-18 | EGP | 13,850,000 | 735,615 |
Yield (%) | Shares | Value | |||
Money market funds 5.8% | 15,291,264 | ||||
Morgan Stanley Institutional Liquidity Funds - Prime Portfolio, Institutional Class | 1.0323(L) | 15,291,264 | 15,291,264 | ||
Total investments (Cost $263,020,935) 100.2% | $263,204,957 | ||||
Other assets and liabilities, net (0.2%) | (442,237) | ||||
Total net assets 100.0% | $262,762,720 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
BRL | Brazilian Real |
EGP | Egyptian Pound |
EUR | Euro |
IDR | Indonesian Rupiah |
MXN | Mexican Peso |
RUB | Russian Ruble |
TRY | Turkish Lira |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Security Abbreviations and Legend | |
CMT | Constant Maturity Treasury |
LIBOR | London Interbank Offered Rate |
PIK | Pay-in-Kind Security - Represents a payment-in-kind which may pay interest in additional par and/or cash. Rates shown are the current rate and most recent payment rate. |
(A) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
(B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $90,621,770 or 34.5% of the fund's net assets as of 1-31-18. |
(C) | Non-income producing security. |
(D) | Non-income producing - Issuer is in default. |
(E) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(F) | A portion of this security is on loan as of 1-31-18. |
(G) | Security purchased or sold on a when-issued or delayed delivery basis. |
(H) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
(I) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(J) | Strike price and/or expiration date not available. |
24 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
(K) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(L) | The rate shown is the annualized seven-day yield as of 1-31-18. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL INCOME FUND | 25 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
BRL | 9,395,947 | USD | 2,837,145 | Citigroup | 2/2/2018 | $111,991 | — |
BRL | 229,880 | USD | 72,451 | Citigroup | 3/2/2018 | — | $(503) |
CLP | 790,391,200 | USD | 1,300,349 | Citigroup | 2/12/2018 | 10,568 | — |
EUR | 9,037,871 | USD | 11,232,383 | JPMorgan Chase & Co. | 2/9/2018 | — | (6,755) |
MXN | 33,583,000 | USD | 1,808,698 | Citigroup | 2/28/2018 | — | (11,451) |
RUB | 34,271,322 | USD | 603,236 | JPMorgan Chase & Co. | 2/22/2018 | 4,977 | — |
USD | 2,878,810 | BRL | 9,166,068 | Citigroup | 2/2/2018 | 1,828 | — |
USD | 72,650 | BRL | 229,880 | Citigroup | 3/2/2018 | 703 | — |
USD | 750,000 | CLP | 449,475,000 | Citigroup | 2/12/2018 | 4,516 | — |
USD | 10,921,215 | EUR | 9,037,871 | JPMorgan Chase & Co. | 2/9/2018 | — | (304,412) |
USD | 9,770,354 | EUR | 7,829,700 | JPMorgan Chase & Co. | 3/9/2018 | 28,602 | — |
USD | 1,804,131 | MXN | 33,583,000 | Citigroup | 2/28/2018 | 6,885 | — |
USD | 605,019 | RUB | 34,271,322 | JPMorgan Chase & Co. | 2/22/2018 | — | (3,193) |
$170,070 | $(326,314) |
Derivatives Currency Abbreviations | |
BRL | Brazilian Real |
CLP | Chilean Peso |
EUR | Euro |
MXN | Mexican Peso |
RUB | Russian Ruble |
USD | U.S. Dollar |
26 | JOHN HANCOCK GLOBAL INCOME FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | |||||||||||||||||||||||||||||||||
Unaffiliated investments, at value (Cost $260,062,439) including $2,874,265 of securities loaned | $260,246,120 | ||||||||||||||||||||||||||||||||
Affiliated investments, at value (Cost $2,958,496) | 2,958,837 | ||||||||||||||||||||||||||||||||
Total investments, at value (Cost $263,020,935) | 263,204,957 | ||||||||||||||||||||||||||||||||
Foreign currency, at value (Cost $115,687) | 114,748 | ||||||||||||||||||||||||||||||||
Cash collateral for OTC derivative contracts | 260,000 | ||||||||||||||||||||||||||||||||
Receivable for investments sold | 2,033,493 | ||||||||||||||||||||||||||||||||
Receivable for fund shares sold | 3,432 | ||||||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 170,070 | ||||||||||||||||||||||||||||||||
Dividends and interest receivable | 3,673,011 | ||||||||||||||||||||||||||||||||
Receivable for securities lending income | 4,637 | ||||||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 44,589 | ||||||||||||||||||||||||||||||||
Total assets | 269,508,937 | ||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Payable for investments purchased | 2,864,800 | ||||||||||||||||||||||||||||||||
Payable for delayed delivery securities purchased | 305,000 | ||||||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 326,314 | ||||||||||||||||||||||||||||||||
Payable for fund shares repurchased | 177,112 | ||||||||||||||||||||||||||||||||
Payable upon return of securities loaned | 2,959,127 | ||||||||||||||||||||||||||||||||
Distributions payable | 1,709 | ||||||||||||||||||||||||||||||||
Payable to affiliates | |||||||||||||||||||||||||||||||||
Accounting and legal services fees | 10,461 | ||||||||||||||||||||||||||||||||
Transfer agent fees | 907 | ||||||||||||||||||||||||||||||||
Trustees' fees | 839 | ||||||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 99,948 | ||||||||||||||||||||||||||||||||
Total liabilities | 6,746,217 | ||||||||||||||||||||||||||||||||
Net assets | $262,762,720 | ||||||||||||||||||||||||||||||||
Net assets consist of | |||||||||||||||||||||||||||||||||
Paid-in capital | $306,452,352 | ||||||||||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | (27,828 | ) | |||||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions, forward foreign currency contracts and swap contracts | (43,695,282 | ) | |||||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies and forward foreign currency contracts | 33,478 | ||||||||||||||||||||||||||||||||
Net assets | $262,762,720 | ||||||||||||||||||||||||||||||||
STATEMENT OF ASSETS AND LIABILITIES (continued)
Net asset value per share | |||||||||||||||||||||
Based on net asset value and shares outstanding - The fund has an unlimited number of shares authorized with no par value | |||||||||||||||||||||
Class A ($9,076,250 ÷ 946,303 shares)1 | $9.59 | ||||||||||||||||||||
Class I ($558,585 ÷ 58,247 shares) | $9.59 | ||||||||||||||||||||
Class R6 ($603,090 ÷ 62,879 shares) | $9.59 | ||||||||||||||||||||
Class NAV ($252,524,795 ÷ 26,324,234 shares) | $9.59 | ||||||||||||||||||||
Maximum offering price per share | |||||||||||||||||||||
Class A (net assets value per share ÷ 96%)2 | $9.99 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | |||||||||||||||||||
2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Interest | $8,176,679 | |||||||||||||||||||||||
Securities lending | 24,367 | |||||||||||||||||||||||
Dividends | 4,489 | |||||||||||||||||||||||
Less foreign taxes withheld | (2,232 | ) | ||||||||||||||||||||||
Total investment income | 8,203,303 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 1,064,321 | |||||||||||||||||||||||
Distribution and service fees | 10,591 | |||||||||||||||||||||||
Accounting and legal services fees | 21,343 | |||||||||||||||||||||||
Transfer agent fees | 5,145 | |||||||||||||||||||||||
Trustees' fees | 1,898 | |||||||||||||||||||||||
State registration fees | 32,502 | |||||||||||||||||||||||
Printing and postage | 18,756 | |||||||||||||||||||||||
Professional fees | 50,636 | |||||||||||||||||||||||
Custodian fees | 69,231 | |||||||||||||||||||||||
Other | 7,640 | |||||||||||||||||||||||
Total expenses | 1,282,063 | |||||||||||||||||||||||
Less expense reductions | (79,303 | ) | ||||||||||||||||||||||
Net expenses | 1,202,760 | |||||||||||||||||||||||
Net investment income | 7,000,543 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Unaffiliated investments and foreign currency transactions | 2,459,410 | |||||||||||||||||||||||
Affiliated investments | (635 | ) | ||||||||||||||||||||||
Forward foreign currency contracts | (584,744 | ) | ||||||||||||||||||||||
Swap contracts | 1,933 | |||||||||||||||||||||||
1,875,964 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | 485,791 | |||||||||||||||||||||||
Affiliated investments | 268 | |||||||||||||||||||||||
Forward foreign currency contracts | 297,240 | |||||||||||||||||||||||
Swap contracts | (17,295 | ) | ||||||||||||||||||||||
766,004 | ||||||||||||||||||||||||
Net realized and unrealized gain | 2,641,968 | |||||||||||||||||||||||
Increase in net assets from operations | $9,642,511 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
From operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | $7,000,543 | $18,572,184 | ||||||||||||||||||||||||||||||||||||||||||||||
Net realized gain | 1,875,964 | 4,092,446 | ||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 766,004 | 1,865,549 | ||||||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 9,642,511 | 24,530,179 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (211,812 | ) | (360,378 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class I | (25,413 | ) | (76,427 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class R6 | (7,950 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class NAV | (7,021,404 | ) | (18,656,320 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (7,266,579 | ) | (19,093,125 | ) | ||||||||||||||||||||||||||||||||||||||||||||
From fund share transactions | (56,980,441 | ) | (90,136,211 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Total decrease | (54,604,509 | ) | (84,699,157 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 317,367,229 | 402,066,386 | ||||||||||||||||||||||||||||||||||||||||||||||
End of period | $262,762,720 | $317,367,229 | ||||||||||||||||||||||||||||||||||||||||||||||
Undistributed (accumulated distributions in excess of) net investment income | ($27,828 | ) | $238,208 |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.51 | $9.35 | $9.33 | $10.18 | $10.09 | $10.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.23 | 0.47 | 0.51 | 0.49 | 0.47 | 0.52 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.09 | 0.17 | 0.03 | (0.82 | ) | 0.21 | (0.21 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.32 | 0.64 | 0.54 | (0.33 | ) | 0.68 | 0.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.24 | ) | (0.48 | ) | (0.52 | ) | (0.52 | ) | (0.51 | ) | (0.57 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | (0.07 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From tax return of capital | — | — | — | — | (0.01 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.24 | ) | (0.48 | ) | (0.52 | ) | (0.52 | ) | (0.59 | ) | (0.69 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.59 | $9.51 | $9.35 | $9.33 | $10.18 | $10.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 3.41 | 5 | 6.98 | 6.21 | (3.34 | ) | 6.95 | 2.85 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $9 | $8 | $5 | $4 | $3 | $1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.29 | 6 | 1.30 | 1.31 | 1.51 | 3.22 | 7.91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.23 | 6 | 1.29 | 1.30 | 1.35 | 1.35 | 1.34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 4.80 | 6 | 4.96 | 5.75 | 5.11 | 4.65 | 5.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 44 | 84 | 74 | 63 | 70 | 71 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.51 | $9.35 | $9.32 | $10.17 | $10.09 | $10.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.25 | 0.49 | 0.52 | 0.46 | 0.50 | 0.55 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.08 | 0.18 | 0.06 | (0.77 | ) | 0.20 | (0.21 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.33 | 0.67 | 0.58 | (0.31 | ) | 0.70 | 0.34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.25 | ) | (0.51 | ) | (0.55 | ) | (0.54 | ) | (0.53 | ) | (0.60 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | (0.07 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From tax return of capital | — | — | — | — | (0.02 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.25 | ) | (0.51 | ) | (0.55 | ) | (0.54 | ) | (0.62 | ) | (0.72 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.59 | $9.51 | $9.35 | $9.32 | $10.17 | $10.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 3.55 | 4 | 7.31 | 6.66 | (3.07 | ) | 7.17 | 3.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $1 | $2 | — | 5 | — | 5 | — | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.04 | 6 | 1.00 | 1.01 | 2.24 | 5.82 | 16.19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.98 | 6 | 0.99 | 1.00 | 1.04 | 1.04 | 1.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 5.11 | 6 | 5.15 | 5.71 | 4.74 | 4.92 | 5.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 44 | 84 | 74 | 63 | 70 | 71 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class R6 Shares Period ended | 1-31-18 | 1 | |||||||||||||||||||||||||||
Per share operating performance | |||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.53 | ||||||||||||||||||||||||||||
Net investment income2 | 0.20 | ||||||||||||||||||||||||||||
Net realized and unrealized gain on investments | 0.08 | ||||||||||||||||||||||||||||
Total from investment operations | 0.28 | ||||||||||||||||||||||||||||
Less distributions | |||||||||||||||||||||||||||||
From net investment income | (0.22 | ) | |||||||||||||||||||||||||||
Total distributions | (0.22 | ) | |||||||||||||||||||||||||||
Net asset value, end of period | $9.59 | ||||||||||||||||||||||||||||
Total return (%)3 | 2.92 | 4 | |||||||||||||||||||||||||||
Ratios and supplemental data | |||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $1 | ||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | |||||||||||||||||||||||||||||
Expenses before reductions | 0.95 | 5 | |||||||||||||||||||||||||||
Expenses including reductions | 0.89 | 5 | |||||||||||||||||||||||||||
Net investment income | 5.03 | 5 | |||||||||||||||||||||||||||
Portfolio turnover (%) | 44 | 6 |
1 | The inception date for Class R6 shares is 8-30-17. Unaudited. | |||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | |||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable period. | |||||||||||||||||||||||||||||||||||||
4 | Not annualized. | |||||||||||||||||||||||||||||||||||||
5 | Annualized. | |||||||||||||||||||||||||||||||||||||
6 | The portfolio turnover is shown for the period from 8-1-17 to 1-31-18. |
Class NAV Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.51 | $9.35 | $9.33 | $10.18 | $10.09 | $10.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.25 | 0.50 | 0.55 | 0.55 | 0.52 | 0.57 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.09 | 0.18 | 0.03 | (0.83 | ) | 0.20 | (0.22 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.34 | 0.68 | 0.58 | (0.28 | ) | 0.72 | 0.35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.26 | ) | (0.52 | ) | (0.56 | ) | (0.57 | ) | (0.54 | ) | (0.61 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | (0.07 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From tax return of capital | — | — | — | — | (0.02 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.26 | ) | (0.52 | ) | (0.56 | ) | (0.57 | ) | (0.63 | ) | (0.73 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.59 | $9.51 | $9.35 | $9.33 | $10.18 | $10.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 3.60 | 4 | 7.43 | 6.66 | (2.85 | ) | 7.43 | 3.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $253 | $308 | $394 | $494 | $589 | $542 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.93 | 5 | 0.89 | 0.89 | 0.85 | 0.92 | 0.90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.87 | 5 | 0.88 | 0.88 | 0.84 | 0.91 | 0.90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 5.17 | 5 | 5.32 | 6.19 | 5.66 | 5.18 | 5.44 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 44 | 84 | 74 | 63 | 70 | 71 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Note 1 — Organization
John Hancock Global Income Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek a high level of current income with capital appreciation as a secondary objective.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A shares are offered to all investors. Class I shares are offered to institutions and certain investors. Class R6 shares are available only to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices. Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars, based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of January 31, 2018, by major security category or type:
Total value at 1-31-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||
Investments in securities: | ||||||||||||||
Assets | ||||||||||||||
Foreign government obligations | $102,208,195 | — | $102,208,195 | — | ||||||||||
Corporate bonds | 132,315,714 | — | 132,315,714 | — | ||||||||||
Term loans | 8,644,119 | — | 8,644,119 | — | ||||||||||
Common stocks | 986,747 | $765,351 | — | $221,396 | ||||||||||
Rights | 55,496 | — | 55,496 | — | ||||||||||
Warrants | 8,124 | 7,890 | 234 | — | ||||||||||
Escrow certificates | 846 | — | — | 846 | ||||||||||
Securities lending collateral | 2,958,837 | 2,958,837 | — | — | ||||||||||
Short-term investments | 16,026,879 | 15,291,264 | 735,615 | — | ||||||||||
Total investments in securities | $263,204,957 | $19,023,342 | $243,959,373 | $222,242 | ||||||||||
Derivatives: | ||||||||||||||
Assets | ||||||||||||||
Forward foreign currency contracts | $170,070 | — | $170,070 | — | ||||||||||
Liabilities | ||||||||||||||
Forward foreign currency contracts | (326,314 | ) | — | (326,314 | ) | — |
Term loans (Floating rate loans). The fund may invest in term loans, which are debt securities and are often rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual restrictions on resale and generally have longer settlement periods than conventional debt securities. Term loans involve special types of risk, including credit risk, interest-rate risk, counterparty risk and risk associated with extended settlement. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During periods of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.
The fund's ability to receive payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. The fund's failure to receive scheduled payments on a term loan due to a default, bankruptcy or other reason would adversely affect the fund's income and would likely reduce the value of its assets. Transactions in loan investments typically take a significant amount of time (i.e., seven days or longer) to settle. This could pose a liquidity risk to the fund and, if the fund's exposure to such investments is substantial, could impair the fund's ability to meet redemptions. Because term loans may not be rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively
on the subadvisor's credit analysis of the borrower and/or term loan agents. There is greater risk that the fund may have limited rights to enforce the terms of an underlying loan than for other types of debt instruments.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives cash collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission as an investment company. JHCT invests cash received as collateral as part of the securities lending program in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of the loss of the securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of January 31, 2018, the fund loaned corporate bonds valued at $2,874,265 and received $2,959,127 of cash collateral.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are also subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the need of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $1,485.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of July 31, 2017, the fund has a short-term capital loss carryforward of $9,147,800 and a long-term capital loss carryforward of $34,755,225 available to offset future net realized capital gains. These carryforwards do not expire.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are typically distributed annually.
Distributions paid by the fund 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 class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, wash sale loss deferrals, defaulted bonds, grantor trusts, derivative transactions, and amortization and accretion on debt securities.
Note 3 — Derivative instruments
The fund may invest in derivatives in order to meet its investment objectives. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of
liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Forward foreign currency contracts and certain swaps are typically traded through the OTC market. Certain forwards and swaps are regulated by the Commodity Futures Trading Commission. Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund for OTC transactions is held in a segregated account at the fund's custodian and is noted in the accompanying Fund's investments, or if cash is posted, on the Statement of assets and liabilities. The fund's maximum risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Centrally-cleared swaps are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Centrally-cleared swap contracts are subject to clearinghouse rules, including initial and variation margin requirements, daily settlement of obligations and the clearinghouse guarantee of payments to the broker. There is, however, still counterparty risk due to the potential insolvency of the broker with respect to any margin held in the brokers' customer accounts. While clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a shortfall in the amount of margin held by the broker for its clients. Collateral or margin requirements for exchange-traded or centrally-cleared derivatives are set by the broker or applicable clearinghouse. Securities pledged by the fund for exchange-traded and centrally-cleared transactions, if any, are identified in the Fund's investments.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, the risk that currency movements will not favor the fund thereby reducing the fund's total return, and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the six months ended January 31, 2018, the fund used forward foreign currency contracts to manage against anticipated changes in currency exchange rates and to manage currency exposure. The fund held forward foreign currency contracts with U.S. dollar notional values ranging from $14.4 million to $44.7 million, as measured at each quarter end.
Credit default swaps. 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 the premium and agreeing to contingent payments that are specified within the credit default agreement. The fund may enter into CDS in which it may act as either Buyer or Seller. By acting as the Seller, the fund may incur economic leverage since it would be obligated to pay the Buyer the notional amount of the contract in the event of a default. The amount of loss in such case could be significant, but would typically be reduced by any recovery value on the underlying credit.
Swaps are marked-to-market daily based upon values from third party vendors or broker quotations, and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that are in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.
Credit default swaps—Seller
Implied credit spreads are utilized in determining the market value of CDS agreements in which the fund is the Seller at period end. 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 creditworthiness and an increased risk of default or other credit event occurring as defined under the terms of the agreement.
For CDS agreements where implied credit spreads are not reported or available, the average credit rating on the underlying index is shown. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity's creditworthiness and a greater likelihood of a credit event occurring. This is also represented by a decrease in the average credit rating of the underlying index. The maximum potential amount of future payments (undiscounted) that a fund as the Seller could be required to make under any CDS agreement equals the notional amount of the agreement.
During the six months ended January 31, 2018, the fund used CDS as a Seller of protection to gain exposure to a security or credit index and as a substitute for securities purchased. The fund acted as Seller on credit default swap contracts with total USD notional amounts ranging up to $600,000 as measured at each quarter end. There were no open CDS as of January 31, 2018.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at January 31, 2018 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | |||||||||||||
Foreign currency | Unrealized appreciation/depreciation on forward foreign currency contracts | Forward foreign currency contracts | $170,070 | ($326,314 | ) |
For financial reporting purposes, the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Statement of assets and liabilities. In the event of default by the counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty.
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - net realized gain (loss) on: | |||||||||||
Risk | Swap contracts | Forward foreign currency contracts | Total | ||||||||
Credit | $1,933 | — | $1,933 | ||||||||
Foreign currency | — | ($584,744 | ) | (584,744 | ) | ||||||
Total | $1,933 | ($584,744 | ) | ($582,811 | ) |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - change in net unrealized appreciation (depreciation) of: | |||||||||||
Risk | Swap contracts | Forward foreign currency contracts | Total | ||||||||
Credit | ($17,295 | ) | — | ($17,295 | ) | ||||||
Foreign currency | — | $297,240 | 297,240 | ||||||||
Total | ($17,295 | ) | $297,240 | $279,945 |
Note 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, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent, on an annual basis, to the sum of: a) 0.785% of the first $250 million of the fund's average daily net assets, b) 0.770% of the next $500 million of the fund's average daily net assets and c) 0.750% of the fund's average daily net assets in excess of $750 million. The Advisor has a subadvisory agreement with Stone Harbor Investment Partners LP. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
The Advisor contractually agrees to reduce its management fee by an annual rate of 0.05% of the fund's average daily net assets. This agreement expires on November 30, 2018, unless renewed by mutual agreement of the fund and the advisor based upon a determination that this is appropriate under the circumstances at that time.
Prior to December 1, 2017, to the extent that expenses of Class A and Class I shares exceeded 1.30% and 1.00%, respectively, of average annual net assets (on an annualized basis) attributable to Class A and Class I shares (expense limitation), the Advisor
contractually agreed to reduce its management fee or, if necessary, make payments to the classes in an amount equal to the amount by which expenses of each share class exceeds its expense limitation. Expenses mean all fund-level and class-specific operating expenses, excluding taxes, brokerage commissions, interest expense, acquired fund fees, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business, borrowing cost and short dividend expense.
The expense reductions described above for the six months ended January 31, 2018, amounted to the following:
Class | Expense reduction | Class | Expense reduction | |
Class A | $2,481 | Class NAV | $76,454 | |
Class I | 278 | Total | $79,303 | |
Class R6 | 90 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 0.73% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted a distribution and service plan with respect to Class A shares pursuant to Rule 12b-1 under the 1940 Act to pay the Distributor for services provided as the distributor of shares of the fund. The fund pays 0.25% for Class A shares distribution and service fees under this arrangement, expressed as an annual percentage of average daily net assets of the fund's Class A shares.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $4,389 for the six months ended January 31, 2018. Of this amount, $611 was retained and used for printing prospectuses, advertising, sales literature and other purposes and $3,778 was paid as sales commissions to broker-dealers.
Class A shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, there were no CDSCs received by the Distributor for Class A shares.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $10,591 | $4,611 |
Class I | — | 515 |
Class R6 | — | 19 |
Total | $10,591 | $5,145 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or lender | Weighted average loan balance | Days outstanding | Weighted average interest rate | Interest income |
Lender | $5,036,137 | 3 | 1.480% | $621 |
Note 6 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 185,882 | $1,774,482 | 583,973 | $5,485,046 | ||||||||||||||||||||||
Distributions reinvested | 21,127 | 201,985 | 36,225 | 341,228 | ||||||||||||||||||||||
Repurchased | (117,908 | ) | (1,127,853 | ) | (332,204 | ) | (3,122,813 | ) | ||||||||||||||||||
Net increase | 89,101 | $848,614 | 287,994 | $2,703,461 | ||||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 19,850 | $189,522 | 176,619 | $1,666,794 | ||||||||||||||||||||||
Distributions reinvested | 2,647 | 25,318 | 8,089 | 76,261 | ||||||||||||||||||||||
Repurchased | (95,144 | ) | (900,528 | ) | (308,252 | ) | (2,854,166 | ) | ||||||||||||||||||
Net decrease | (72,647 | ) | ($685,688 | ) | (123,544 | ) | ($1,111,111 | ) | ||||||||||||||||||
Class R6 shares1 | ||||||||||||||||||||||||||
Sold | 72,940 | $689,509 | — | — | ||||||||||||||||||||||
Distributions reinvested | 714 | 6,818 | — | — | ||||||||||||||||||||||
Repurchased | (10,775 | ) | (103,168 | ) | — | — | ||||||||||||||||||||
Net increase | 62,879 | $593,159 | — | — | ||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 396,479 | $3,759,231 | 434,461 | $4,064,161 | ||||||||||||||||||||||
Distributions reinvested | 734,412 | 7,021,404 | 1,982,001 | 18,656,320 | ||||||||||||||||||||||
Repurchased | (7,187,355 | ) | (68,517,161 | ) | (12,196,179 | ) | (114,449,042 | ) | ||||||||||||||||||
Net decrease | (6,056,464 | ) | ($57,736,526 | ) | (9,779,717 | ) | ($91,728,561 | ) | ||||||||||||||||||
Total net decrease | (5,977,131 | ) | ($56,980,441 | ) | (9,615,267 | ) | ($90,136,211 | ) |
1The inception date for Class R6 shares is 8-30-17.
Affiliates of the fund owned 8% and 100% of shares of Class R6 and Class NAV, respectively, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $113,401,945 and $176,873,354, respectively, for the six months ended January 31, 2018.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At January 31, 2018, funds within the John Hancock group of funds complex held 96.1% of the fund's net assets. The following funds had an affiliate ownership of 5% or more of the fund's net assets:
Fund | Affiliated concentration |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 33.0% |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 17.1% |
John Hancock Funds II Multimanager Lifestyle Moderate Portfolio | 12.4% |
John Hancock Funds II Alternative Asset Allocation Fund | 11.2% |
John Hancock Funds II Multimanager Lifestyle Conservative Portfolio | 10.3% |
Note 9 — Interfund trading
The fund is permitted to purchase or sell securities from or to certain other affiliated funds, as set forth in Rule 17a-7 of the 1940 Act, under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the fund from or to another fund that is or could be considered an affiliate complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the six months ended January 31, 2018, the fund engaged in sales amounting to $6,522,321.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor Stone Harbor Investment Partners LP Principal distributor John Hancock Funds, LLC Custodian Citibank, N.A. Transfer agent John Hancock Signature Services, Inc. Legal counsel K&L Gates LLP |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
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John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
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back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
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| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Global Income Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431081 | 352SA 1/18 3/18 |
John Hancock
Short Duration Credit Opportunities Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In early February—just after the close of the reporting period—markets around the world experienced a meaningful rise in volatility. Stocks and other risk assets declined as investors reacted to the signs of rising inflation, a prospect that suggested the U.S. Federal Reserve was likely to continue to withdraw stimulus from the financial system. Longer-term yields climbed sharply, as investors sold long-dated U.S. Treasury debt. After significant losses in a matter of days, major indexes reversed course again. It appears that volality will be an issue in 2018.
While some in the asset management community believe the dip in risk assets will be temporary, it's likely that the era of extremely low volatility is behind us for the time being. Ultimately, asset prices of stocks and corporate bonds are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close: Unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
That said, this kind of market behavior is likely representative of the balancing act investors will face in the year ahead: Continued solid economic growth will lead to normalization of monetary policy, meaning higher borrowing costs and greater headwinds for rate-sensitive securities. Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence along the way.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Short Duration Credit Opportunities Fund
INVESTMENT OBJECTIVE
The fund seeks to maximize total return, which consists of income on its investments and capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The Bloomberg Barclays 1 - 5 Year U.S. Credit Index includes investment-grade corporate and international U.S. dollar-denominated bonds with maturities of 1 to 5 years.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
Short-term bonds came under pressure, but the credit sectors advanced
Market segments that typically benefit from improving growth—including high-yield bonds, term loans, and emerging-market debt—outperformed domestic investment-grade issues.
The fund outpaced its benchmark
The portfolio's substantial allocation to these higher-yielding asset classes, which are not represented in the benchmark—the Bloomberg Barclays 1-5 Year U.S. Credit Index—played the largest role in its outperformance.
Security selection was an additional positive
The fund's holdings in investment-grade bonds and the emerging markets exceeded the returns of the broader categories.
PORTFOLIO COMPOSITION AS OF 1/31/18 (%)
A note about risks
Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. A fund concentrated in one sector or that holds a limited number of securities may fluctuate more than a fund that invests in a wider variety of sectors. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Loan participations and assignments involve additional risks, including credit risk, interest-rate risk, counterparty risk, liquidity risk, and extended settlement risk. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. For additional information on these and other risk considerations, please see the fund's prospectus.
From the Investment Management Team
Stone Harbor Investment Partners LP
Can you describe the market environment during the six months ended January 31, 2018?
The semiannual period proved to be a somewhat challenging time for short-term bonds, as reflected in the negative return for the fund's benchmark, the Bloomberg Barclays 1-5 Year U.S. Credit Index. The economy accelerated steadily, with declining unemployment, rising industrial production, and healthy holiday retail sales. In addition, the passage of a sweeping tax cut package in December fueled hopes for even stronger growth in the year ahead. These trends, while positive, also raised the prospect of a faster-than-expected pace of interest-rate increases by the U.S. Federal Reserve (Fed) in 2018. The short end of the yield curve sold off in response, as illustrated by the increase in the two-year U.S. Treasury yield, from 1.34% on July 31, 2017, to 2.14% on the final day of January. The jump in Treasury yields, in turn, fed through to weaker performance for the high-grade corporate issues represented in the benchmark.
The improvement in the growth picture, although a headwind for rate-sensitive assets, aided the performance of market segments with above-average correlations to economic trends. High-yield bonds and term loans both gained ground amid the improving outlook for corporate America, and emerging-market debt traded higher as the pickup in the global trade provided an outsize boost to the world's smaller economies.
What aspects of the fund's positioning helped results?
The fund was well positioned for the environment of the past six months, helping it deliver a gain and exceed the return of the benchmark. We held approximately half of the portfolio in credit-oriented sectors that are not represented in the index, enabling the fund to capitalize on the stronger returns of high-yield bonds, loans, and emerging-market debt. We also added value by maintaining overweights in the higher-yielding segments of the investment-grade market, such as corporate bonds and securitized assets, while remaining underweight in U.S. Treasuries.
Security selection, particularly in investment-grade corporates and emerging-market debt, was a further driver of the fund's strong results. In the former, the fund benefited from the outperformance of holdings in the securitized area, as well as in the energy, banking, electric utilities, and communication industries within the corporate bond category. In energy, key individual contributors included Marathon Petroleum Corp., Halliburton Company, FirstEnergy Corp., and Anadarko
QUALITY COMPOSITION AS OF 1/31/18 (%)
Our strategy with respect to duration positioning (interest-rate sensitivity) contributed positively. We kept the fund's duration below that of the index, which proved beneficial at a time in which yields rose. As of January 31, 2018, the portfolio's duration stood at 2.2 years, versus 2.8 for the index. Performance was further aided by our decision to position the fund for a flattening of the yield curve (i.e., outperformance for longer-term bonds compared with short-term issues).
What factors detracted from performance?
Given the fund's outperformance, few factors stood out as detractors. The fund lost some ground in our global currency strategy by having a short position in the euro, which rose in value against the U.S. dollar. Industry allocations to high yield also detracted modestly, largely due to higher exposure to cable and media issues.
Our decision to hedge a portion of the fund's high-yield position detracted, as well. This aspect of the strategy prevented the fund from fully benefiting from high yield's outperformance, but we saw it as the prudent course with yield spreads having declined to multi-year lows.
How would you characterize the fund's positioning at the end of the period?
Although we maintained a steady positioning overall, we reduced the fund's allocation to European high yield in the second half of the period and rotated the proceeds into local currency emerging-market debt. We saw the latter category as offering attractive yields and a way to benefit from further appreciation in emerging-market currencies versus the U.S. dollar. At the same time, we believed the values in European high-yield bonds had become elevated, given that the yield advantage over government issues had fallen below three percentage points. Later in the period, we sought to capitalize on the rally in local currency bonds by reducing the allocation back toward
COUNTRY COMPOSITION AS OF 1/31/18 (%)
United States | 78.5 |
Mexico | 1.4 |
Brazil | 1.3 |
Indonesia | 1.1 |
Turkey | 1.1 |
Luxembourg | 1.0 |
Canada | 1.0 |
Russia | 1.0 |
Other countries | 13.6 |
TOTAL | 100.0 |
As a percentage of net assets. |
the level where it stood at the end of July. We believe these shifts illustrate the merits of a flexible approach that can seek the most compelling ideas across the full range of the credit sectors while tilting away from areas that offer less attractive valuations.
More broadly speaking, we hold a fairly cautious view on the markets at this stage. Although the underpinnings of the credit sectors—namely, stronger growth and improving corporate fundamentals—remain in place, we also recognize that the risks of a disruption have risen with yield spreads near multi-year lows and the Fed in the midst of monetary tightening. We therefore maintained the hedge on the high-yield position, and we established a hedge on the fund's allocation to emerging markets. We believe this approach can help mitigate volatility and dampen the effect of a potential market downturn. In addition, it provides us with the flexibility to reestablish exposure quickly by removing the hedges rather than disrupting the portfolio by buying and selling individual securities in volatile conditions.
Overall, we maintained a highly selective, research-based approach designed to identify individual bond issues with a more attractive risk/return profile than the broader market. We believe this active strategy—as well as our ability to invest across the full spectrum of the global fixed-income markets—can add value in an environment that may prove more challenging compared with the favorable conditions of the past two years.
MANAGED BY
The Short Duration Credit Opportunities Fund is managed by a team that broadly manages across global fixed-income markets at Stone Harbor Investment Partners LP. |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | SEC 30-day yield (%) subsidized | SEC 30-day yield (%) unsubsidized1 | ||||||||
1-year | 5-year | Since inception2 | 6-month | 5-year | Since inception2 | as of 1-31-18 | as of 1-31-18 | ||||
Class A | 1.91 | 1.48 | 3.10 | -0.73 | 7.61 | 28.66 | 3.17 | 3.16 | |||
Class C3 | 2.87 | 1.47 | 3.10 | 0.48 | 7.59 | 28.67 | 2.57 | 2.56 | |||
Class I4 | 4.91 | 2.30 | 3.73 | 1.99 | 12.06 | 35.29 | 3.56 | 3.55 | |||
Class R23,4 | 4.75 | 2.10 | 3.49 | 1.91 | 10.95 | 32.70 | 3.42 | 3.41 | |||
Class R43,4 | 4.85 | 2.16 | 3.52 | 1.97 | 11.27 | 33.08 | 3.52 | 3.41 | |||
Class R63,4 | 5.02 | 2.26 | 3.58 | 2.05 | 11.80 | 33.71 | 3.66 | 3.65 | |||
Class NAV4 | 5.02 | 2.48 | 3.91 | 2.05 | 13.05 | 37.24 | 3.67 | 3.66 | |||
Index† | 1.50 | 1.73 | 2.84 | -0.38 | 8.97 | 25.94 | — | — |
Performance figures assume all distributions are reinvested. Figures reflect maximum sales charges on Class A shares of 2.5% and the applicable contingent deferred sales charge (CDSC) on Class C shares. The returns for Class A shares have been adjusted to reflect the reduction in the maximum sales charge from 4.5% to 2.5%, effective 2-3-14. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until November 30, 2018 and are subject to change. Had the fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | |
Gross (%) | 1.18 | 1.88 | 0.87 | 1.28 | 1.13 | 0.78 | 0.76 |
Net (%) | 1.18 | 1.88 | 0.87 | 1.28 | 1.03 | 0.78 | 0.76 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the Bloomberg Barclays 1-5 Year U.S. Credit Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Short Duration Credit Opportunities Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Bloomberg Barclays 1-5 Year U.S. Credit Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C3,5 | 11-2-09 | 12,867 | 12,867 | 12,594 |
Class I4 | 11-2-09 | 13,529 | 13,529 | 12,594 |
Class R23,4 | 11-2-09 | 13,270 | 13,270 | 12,594 |
Class R43,4 | 11-2-09 | 13,308 | 13,308 | 12,594 |
Class R63,4 | 11-2-09 | 13,371 | 13,371 | 12,594 |
Class NAV4 | 11-2-09 | 13,724 | 13,724 | 12,594 |
The values shown in the chart for "Class A with maximum sales charge" have been adjusted to reflect the reduction in the Class A maximum sales charge from 4.5% to 2.5%, which became effective on 2-3-14.
The Bloomberg Barclays 1-5 Year U.S. Credit Index includes investment-grade corporate and international U.S. dollar-denominated bonds with maturities of 1 to 5 years.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | Unsubsidized yield reflects what the yield would have been without the effects of waivers and reimbursements. |
2 | From 11-2-09. |
3 | Class C shares were first offered on 6-27-14; Class R2, Class R4, and Class R6 shares were first offered on 3-27-15. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
4 | For certain types of investors as described in the fund's prospectuses. |
5 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,018.10 | $5.90 | 1.16% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.40 | 5.90 | 1.16% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,014.80 | 9.45 | 1.86% |
Hypothetical example for comparison purposes | 1,000.00 | 1,015.79 | 9.45 | 1.86% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,019.90 | 4.38 | 0.86% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.90 | 4.38 | 0.86% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,019.10 | 5.19 | 1.02% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.10 | 5.19 | 1.02% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,019.70 | 4.68 | 0.92% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.60 | 4.69 | 0.92% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,020.50 | 3.87 | 0.76% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.40 | 3.87 | 0.76% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,020.50 | 3.87 | 0.76% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.40 | 3.87 | 0.76% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 0.7% | $7,196,038 | ||||
(Cost $7,296,311) | |||||
U.S. Government Agency 0.7% | 7,196,038 | ||||
Federal Home Loan Mortgage Corp. | |||||
30 Yr Pass Thru (12 month LIBOR + 1.608%) (A) | 2.152 | 05-01-43 | 921,586 | 949,690 | |
30 Yr Pass Thru (12 month LIBOR + 1.624%) (A) | 2.543 | 04-01-46 | 1,219,579 | 1,229,975 | |
30 Yr Pass Thru (12 month LIBOR + 1.650%) (A) | 2.186 | 12-01-42 | 1,222,914 | 1,232,113 | |
30 Yr Pass Thru (12 month LIBOR + 1.743%) (A) | 3.420 | 01-01-37 | 162,007 | 166,806 | |
30 Yr Pass Thru (12 month LIBOR + 1.851%) (A) | 2.773 | 03-01-42 | 172,951 | 179,313 | |
Federal National Mortgage Association | |||||
30 Yr Pass Thru (12 month LIBOR + 1.570%) (A) | 3.324 | 04-01-37 | 778,042 | 807,320 | |
30 Yr Pass Thru (12 month LIBOR + 1.583%) (A) | 2.847 | 12-01-44 | 1,147,982 | 1,159,030 | |
30 Yr Pass Thru (12 month LIBOR + 1.761%) (A) | 3.524 | 10-01-38 | 361,194 | 373,258 | |
30 Yr Pass Thru (12 month LIBOR + 1.767%) (A) | 3.423 | 04-01-44 | 790,147 | 815,969 | |
30 Yr Pass Thru (12 month LIBOR + 1.907%) (A) | 3.657 | 01-01-37 | 34,306 | 36,083 | |
Government National Mortgage Association | |||||
30 Yr Pass Thru | 4.500 | 01-15-40 | 141,383 | 151,104 | |
30 Yr Pass Thru | 6.000 | 08-15-35 | 84,526 | 95,377 | |
Foreign government obligations 12.3% | $117,821,489 | ||||
(Cost $113,466,746) | |||||
Angola 0.0% | 391,669 | ||||
Republic of Angola | |||||
Bond (6 month LIBOR + 7.500%) (A) | 9.344 | 07-01-23 | 363,077 | 391,669 | |
Argentina 0.8% | 7,208,148 | ||||
Provincia del Chaco | |||||
Bond | 9.375 | 08-18-24 | 301,000 | 310,475 | |
Republic of Argentina | |||||
Bond | 4.740 | 12-31-38 | EUR | 5,174,000 | 4,635,398 |
Bond | 7.820 | 12-31-33 | EUR | 1,577,380 | 2,262,275 |
Azerbaijan 0.0% | 184,346 | ||||
Republic of Azerbaijan | |||||
Bond (B) | 4.750 | 03-18-24 | 177,000 | 184,346 | |
Bahrain 0.0% | 371,763 | ||||
Kingdom of Bahrain | |||||
Bond (B) | 7.000 | 10-12-28 | 365,000 | 371,763 |
12 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Brazil 1.0% | $9,242,773 | ||||
Brazil Minas SPE | |||||
Bond | 5.333 | 02-15-28 | 2,736,000 | 2,777,040 | |
Bond (B) | 5.333 | 02-15-28 | 119,000 | 120,785 | |
Federative Republic of Brazil | |||||
Bond | 5.000 | 01-27-45 | 129,000 | 119,519 | |
Bond | 5.625 | 01-07-41 | 675,000 | 679,388 | |
Bond | 5.625 | 02-21-47 | 188,000 | 188,470 | |
Bond | 8.250 | 01-20-34 | 152,000 | 197,220 | |
Bond | 10.000 | 01-01-27 | BRL | 2,214,000 | 712,665 |
Note | 10.000 | 01-01-21 | BRL | 7,990,000 | 2,613,703 |
Note | 10.000 | 01-01-23 | BRL | 2,290,000 | 745,817 |
Note | 10.000 | 01-01-25 | BRL | 3,360,000 | 1,088,166 |
Cameroon 0.1% | 1,061,166 | ||||
Republic of Cameroon | |||||
Bond (B) | 9.500 | 11-19-25 | 695,000 | 824,034 | |
Bond | 9.500 | 11-19-25 | 200,000 | 237,132 | |
Chile 0.0% | 121,716 | ||||
Republic of Chile | |||||
Bond | 4.500 | 02-28-21 | CLP | 70,000,000 | 121,716 |
Colombia 0.7% | 6,515,200 | ||||
Bogota Distrito Capital | |||||
Bond | 9.750 | 07-26-28 | COP | 427,000,000 | 162,495 |
Republic of Colombia | |||||
Bond | 2.625 | 03-15-23 | 263,000 | 255,373 | |
Bond | 4.375 | 03-21-23 | COP | 650,000,000 | 216,484 |
Bond | 4.500 | 01-28-26 | 1,008,000 | 1,069,488 | |
Bond | 5.000 | 06-15-45 | 610,000 | 641,720 | |
Bond | 7.750 | 04-14-21 | COP | 5,400,000,000 | 2,016,213 |
Bond | 8.125 | 05-21-24 | 165,000 | 207,900 | |
Bond | 9.850 | 06-28-27 | COP | 3,420,000,000 | 1,506,634 |
Bond | 10.375 | 01-28-33 | 278,000 | 438,893 | |
Costa Rica 0.2% | 1,718,900 | ||||
Republic of Costa Rica | |||||
Bond | 4.250 | 01-26-23 | 668,000 | 647,960 | |
Bond (B) | 4.375 | 04-30-25 | 428,000 | 411,950 | |
Bond | 4.375 | 04-30-25 | 430,000 | 413,875 | |
Bond (B) | 7.000 | 04-04-44 | 234,000 | 245,115 | |
Croatia 0.1% | 537,432 | ||||
Republic of Croatia | |||||
Bond (B) | 6.000 | 01-26-24 | 477,000 | 537,432 | |
Dominican Republic 0.3% | 3,217,408 | ||||
Government of Dominican Republic | |||||
Bond | 5.500 | 01-27-25 | 662,000 | 691,790 | |
Bond (B) | 5.875 | 04-18-24 | 93,000 | 99,510 | |
Bond | 5.950 | 01-25-27 | 290,000 | 311,388 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 13 |
Rate (%) | Maturity date | Par value^ | Value | ||
Dominican Republic (continued) | |||||
Bond | 6.600 | 01-28-24 | 347,000 | $385,170 | |
Bond | 6.875 | 01-29-26 | 233,000 | 263,873 | |
Bond (B) | 7.450 | 04-30-44 | 1,200,000 | 1,419,000 | |
Bond | 7.500 | 05-06-21 | 43,000 | 46,677 | |
Ecuador 0.4% | 3,740,677 | ||||
Republic of Ecuador | |||||
Bond (B) | 7.875 | 01-23-28 | 1,005,000 | 1,022,647 | |
Bond | 7.950 | 06-20-24 | 714,000 | 755,055 | |
Bond (B) | 8.875 | 10-23-27 | 1,380,000 | 1,502,475 | |
Bond (B) | 9.650 | 12-13-26 | 200,000 | 228,000 | |
Bond (B) | 10.750 | 03-28-22 | 200,000 | 232,500 | |
Egypt 0.2% | 1,628,703 | ||||
Arab Republic of Egypt | |||||
Bond (B) | 6.125 | 01-31-22 | 715,000 | 757,055 | |
Bond (B) | 7.500 | 01-31-27 | 371,000 | 414,593 | |
Bond (B) | 8.500 | 01-31-47 | 399,000 | 457,055 | |
El Salvador 0.1% | 1,412,207 | ||||
Republic of El Salvador | |||||
Bond | 5.875 | 01-30-25 | 140,000 | 140,350 | |
Bond (B) | 6.375 | 01-18-27 | 73,000 | 74,643 | |
Bond | 6.375 | 01-18-27 | 169,000 | 172,803 | |
Bond (B) | 7.375 | 12-01-19 | 180,000 | 189,000 | |
Bond | 7.625 | 02-01-41 | 56,000 | 61,460 | |
Bond | 7.650 | 06-15-35 | 505,000 | 554,238 | |
Bond | 8.250 | 04-10-32 | 189,000 | 219,713 | |
Gabon 0.2% | 1,769,923 | ||||
Republic of Gabon | |||||
Bond (B) | 6.375 | 12-12-24 | 1,285,000 | 1,298,107 | |
Bond (B) | 6.950 | 06-16-25 | 457,000 | 471,816 | |
Georgia 0.0% | 252,483 | ||||
Republic of Georgia | |||||
Bond (B) | 6.875 | 04-12-21 | 231,000 | 252,483 | |
Ghana 0.1% | 1,091,215 | ||||
Republic of Ghana | |||||
Bond | 8.125 | 01-18-26 | 200,000 | 220,673 | |
Bond | 10.750 | 10-14-30 | 639,000 | 870,542 | |
Honduras 0.0% | 281,330 | ||||
Republic of Honduras | |||||
Bond (B) | 6.250 | 01-19-27 | 262,000 | 281,330 | |
Indonesia 0.9% | 8,855,528 | ||||
Republic of Indonesia | |||||
Bond (B) | 3.850 | 07-18-27 | 1,339,000 | 1,360,227 | |
Bond | 5.250 | 01-17-42 | 673,000 | 740,442 |
14 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Indonesia (continued) | |||||
Bond | 5.375 | 10-17-23 | 425,000 | $468,069 | |
Bond | 6.750 | 01-15-44 | 101,000 | 133,229 | |
Bond | 7.875 | 04-15-19 | IDR | 14,395,000,000 | 1,109,679 |
Bond | 8.250 | 05-15-36 | IDR | 17,100,000,000 | 1,456,438 |
Bond | 8.375 | 09-15-26 | IDR | 41,951,000,000 | 3,587,444 |
Iraq 0.5% | 4,516,231 | ||||
Republic of Iraq | |||||
Bond | 5.800 | 01-15-28 | 2,401,000 | 2,375,887 | |
Bond (B) | 6.750 | 03-09-23 | 2,060,000 | 2,140,344 | |
Ivory Coast 0.2% | 2,256,243 | ||||
Republic of Ivory Coast | |||||
Bond (B) | 5.125 | 06-15-25 | EUR | 440,000 | 594,802 |
Bond (B) | 6.125 | 06-15-33 | 290,000 | 296,737 | |
Bond | 6.125 | 06-15-33 | 200,000 | 205,000 | |
Bond (B) | 6.375 | 03-03-28 | 1,093,000 | 1,159,704 | |
Jamaica 0.0% | 372,000 | ||||
Government of Jamaica | |||||
Bond | 8.000 | 03-15-39 | 300,000 | 372,000 | |
Jordan 0.1% | 842,937 | ||||
Kingdom of Jordan | |||||
Bond (B) | 5.750 | 01-31-27 | 531,000 | 534,519 | |
Bond (B) | 7.375 | 10-10-47 | 287,000 | 308,418 | |
Kenya 0.1% | 879,373 | ||||
Republic of Kenya | |||||
Bond (B) | 5.875 | 06-24-19 | 505,000 | 518,948 | |
Bond (B) | 6.875 | 06-24-24 | 3,000 | 3,160 | |
Bond | 6.875 | 06-24-24 | 339,000 | 357,265 | |
Lebanon 0.1% | 1,142,163 | ||||
Republic of Lebanon | |||||
Bond | 6.100 | 10-04-22 | 339,000 | 338,393 | |
Bond | 6.250 | 11-04-24 | 142,000 | 139,070 | |
Bond | 6.375 | 03-09-20 | 12,000 | 12,133 | |
Bond | 6.400 | 05-26-23 | 373,000 | 370,652 | |
Bond | 6.600 | 11-27-26 | 122,000 | 119,560 | |
Bond | 6.750 | 11-29-27 | 166,000 | 162,355 | |
Malaysia 0.1% | 1,442,772 | ||||
Government of Malaysia | |||||
Bond | 3.418 | 08-15-22 | MYR | 5,700,000 | 1,442,772 |
Mexico 0.7% | 6,550,127 | ||||
Government of Mexico | |||||
Bond | 3.750 | 01-11-28 | 500,000 | 490,500 | |
Bond | 5.750 | 03-05-26 | MXN | 27,360,000 | 1,307,923 |
Bond | 6.500 | 06-10-21 | MXN | 6,060,000 | 315,781 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 15 |
Rate (%) | Maturity date | Par value^ | Value | ||
Mexico (continued) | |||||
Bond | 7.500 | 06-03-27 | MXN | 4,010,000 | $213,555 |
Bond | 8.500 | 12-13-18 | MXN | 13,320,000 | 720,797 |
Bond | 8.500 | 11-18-38 | MXN | 16,980,000 | 978,471 |
Bond | 10.000 | 12-05-24 | MXN | 41,472,500 | 2,523,100 |
Montenegro 0.0% | 423,494 | ||||
Republic of Montenegro | |||||
Bond (B) | 5.750 | 03-10-21 | EUR | 308,000 | 423,494 |
Nigeria 0.2% | 1,473,222 | ||||
Federal Republic of Nigeria | |||||
Bond (B) | 6.500 | 11-28-27 | 833,000 | 864,304 | |
Bond (B) | 7.625 | 11-28-47 | 310,000 | 331,159 | |
Bond (B) | 7.875 | 02-16-32 | 246,000 | 277,759 | |
Oman 0.3% | 2,487,052 | ||||
Sultanate of Oman | |||||
Bond | 3.625 | 06-15-21 | 521,000 | 517,244 | |
Bond (B) | 4.125 | 01-17-23 | 199,000 | 196,306 | |
Bond (B) | 5.375 | 03-08-27 | 317,000 | 317,631 | |
Bond (B) | 5.625 | 01-17-28 | 199,000 | 200,379 | |
Bond (B) | 6.500 | 03-08-47 | 1,257,000 | 1,255,492 | |
Panama 0.1% | 1,416,576 | ||||
Republic of Panama | |||||
Bond | 3.875 | 03-17-28 | 1,288,000 | 1,336,300 | |
Bond | 6.700 | 01-26-36 | 61,000 | 80,276 | |
Paraguay 0.1% | 547,503 | ||||
Republic of Paraguay | |||||
Bond | 5.000 | 04-15-26 | 200,000 | 212,750 | |
Bond (B) | 6.100 | 08-11-44 | 293,000 | 334,753 | |
Peru 0.0% | 402,455 | ||||
Republic of Peru | |||||
Bond (B) | 6.150 | 08-12-32 | PEN | 440,000 | 151,726 |
Bond (B) | 6.350 | 08-12-28 | PEN | 710,000 | 250,729 |
Poland 0.5% | 4,561,474 | ||||
Republic of Poland | |||||
Bond | 1.750 | 07-25-21 | PLN | 11,260,000 | 3,304,332 |
Bond | 2.500 | 07-25-26 | PLN | 4,485,000 | 1,257,142 |
Qatar 0.1% | 908,963 | ||||
Government of Qatar | |||||
Bond (B) | 3.250 | 06-02-26 | 90,000 | 85,743 | |
Bond (B) | 4.500 | 01-20-22 | 793,000 | 823,220 | |
Romania 0.1% | 731,814 | ||||
Government of Romania | |||||
Bond | 4.750 | 02-24-25 | RON | 350,000 | 95,413 |
Bond | 5.800 | 07-26-27 | RON | 2,170,000 | 636,401 |
16 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Russia 1.0% | $9,129,369 | ||||
Government of Russia | |||||
Bond | 3.500 | 01-16-19 | 600,000 | 603,780 | |
Bond | 4.250 | 06-23-27 | 1,600,000 | 1,641,178 | |
Bond | 4.750 | 05-27-26 | 600,000 | 638,175 | |
Bond | 5.250 | 06-23-47 | 200,000 | 210,500 | |
Bond | 5.625 | 04-04-42 | 400,000 | 447,885 | |
Bond | 6.400 | 05-27-20 | RUB | 43,150,000 | 761,947 |
Bond | 6.700 | 05-15-19 | RUB | 25,650,000 | 456,299 |
Bond | 6.800 | 12-11-19 | RUB | 10,080,000 | 179,666 |
Bond | 7.400 | 12-07-22 | RUB | 28,120,000 | 513,250 |
Bond | 7.700 | 03-23-33 | RUB | 7,567,000 | 138,402 |
Bond | 7.750 | 09-16-26 | RUB | 133,580,000 | 2,484,437 |
Bond | 8.150 | 02-03-27 | RUB | 22,520,000 | 430,002 |
Bond | 8.500 | 09-17-31 | RUB | 31,837,000 | 623,848 |
Senegal 0.1% | 791,534 | ||||
Republic of Senegal | |||||
Bond (B) | 6.250 | 05-23-33 | 757,000 | 791,534 | |
South Africa 0.7% | 6,762,688 | ||||
Republic of South Africa | |||||
Bond | 4.300 | 10-12-28 | 1,365,000 | 1,315,920 | |
Bond | 4.875 | 04-14-26 | 281,000 | 287,294 | |
Bond | 6.250 | 03-31-36 | ZAR | 4,370,000 | 269,453 |
Bond | 7.000 | 02-28-31 | ZAR | 61,260,000 | 4,362,384 |
Bond | 8.750 | 02-28-48 | ZAR | 6,332,000 | 492,502 |
Bond | 10.500 | 12-21-26 | ZAR | 370,000 | 35,135 |
Sri Lanka 0.1% | 918,343 | ||||
Republic of Sri Lanka | |||||
Bond (B) | 6.125 | 06-03-25 | 393,000 | 413,483 | |
Bond | 6.250 | 07-27-21 | 477,000 | 504,860 | |
Thailand 0.1% | 912,952 | ||||
Kingdom of Thailand | |||||
Bond | 2.550 | 06-26-20 | THB | 15,740,000 | 515,552 |
Bond | 3.875 | 06-13-19 | THB | 4,540,000 | 149,942 |
Bond | 4.875 | 06-22-29 | THB | 6,325,000 | 247,458 |
Turkey 1.0% | 9,593,879 | ||||
Republic of Turkey | |||||
Bond | 5.750 | 05-11-47 | 1,271,000 | 1,206,815 | |
Bond | 6.000 | 03-25-27 | 1,412,000 | 1,484,012 | |
Bond | 6.250 | 09-26-22 | 1,269,000 | 1,371,089 | |
Bond | 6.625 | 02-17-45 | 1,000,000 | 1,058,840 | |
Bond | 6.875 | 03-17-36 | 744,000 | 818,465 | |
Bond | 7.400 | 02-05-20 | TRY | 1,100,000 | 265,879 |
Bond | 8.500 | 09-14-22 | TRY | 8,730,000 | 2,061,331 |
Bond | 10.600 | 02-11-26 | TRY | 602,000 | 149,411 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 17 |
Rate (%) | Maturity date | Par value^ | Value | ||
Turkey (continued) | |||||
Bond | 10.700 | 02-17-21 | TRY | 1,685,000 | $426,670 |
Bond | 11.000 | 03-02-22 | TRY | 960,000 | 247,884 |
Bond | 11.000 | 02-24-27 | TRY | 1,961,000 | 503,483 |
Ukraine 0.6% | 5,520,115 | ||||
Republic of Ukraine | |||||
Bond (B) | 7.375 | 09-25-32 | 1,525,000 | 1,547,482 | |
Bond | 7.750 | 09-01-23 | 333,000 | 361,781 | |
Bond (B) | 7.750 | 09-01-25 | 354,000 | 381,393 | |
Bond (B) | 7.750 | 09-01-26 | 10,000 | 10,687 | |
Bond | 7.750 | 09-01-26 | 209,000 | 223,367 | |
Bond (B) | 7.750 | 09-01-27 | 2,006,000 | 2,141,726 | |
GDP-Linked Bond (C) | 2.346* | 05-31-40 | 1,258,000 | 853,679 | |
Uruguay 0.3% | 2,599,463 | ||||
Republic of Uruguay | |||||
Bond | 4.125 | 11-20-45 | 197,000 | 194,538 | |
Bond | 4.375 | 10-27-27 | 1,158,000 | 1,230,375 | |
Bond | 5.100 | 06-18-50 | 640,865 | 695,979 | |
Bond (B) | 8.500 | 03-15-28 | UYU | 4,160,000 | 142,245 |
Bond | 9.875 | 06-20-22 | UYU | 9,210,000 | 336,326 |
Venezuela 0.1% | 578,240 | ||||
Republic of Venezuela | |||||
Bond (D) | 7.750 | 10-13-19 | 2,224,000 | 578,240 | |
Zambia 0.0% | 457,920 | ||||
Republic of Zambia | |||||
Bond | 5.375 | 09-20-22 | 374,000 | 363,969 | |
Bond (B) | 5.375 | 09-20-22 | 56,000 | 54,498 | |
Bond (B) | 8.500 | 04-14-24 | 36,000 | 39,453 | |
Corporate bonds 35.6% | $342,513,352 | ||||
(Cost $338,454,981) | |||||
Consumer discretionary 6.7% | 64,427,177 | ||||
Auto components 0.2% | |||||
Dana Financing Luxembourg Sarl (B) | 6.500 | 06-01-26 | 1,105,000 | 1,194,781 | |
ZF North America Capital, Inc. (B) | 4.750 | 04-29-25 | 332,000 | 341,960 | |
Automobiles 1.0% | |||||
Ford Motor Company | 4.346 | 12-08-26 | 2,125,000 | 2,144,065 | |
General Motors Financial Company, Inc. | 4.300 | 07-13-25 | 2,925,000 | 2,988,908 | |
Hyundai Capital America (B) | 2.550 | 02-06-19 | 3,175,000 | 3,166,815 | |
Hyundai Capital America (B) | 3.250 | 09-20-22 | 1,175,000 | 1,161,192 | |
Diversified consumer services 0.1% | |||||
Weight Watchers International, Inc. (B) | 8.625 | 12-01-25 | 835,000 | 893,450 | |
Hotels, restaurants and leisure 1.0% | |||||
Boyd Gaming Corp. | 6.375 | 04-01-26 | 260,000 | 278,850 | |
Darden Restaurants, Inc. (E) | 3.850 | 05-01-27 | 3,250,000 | 3,262,071 |
18 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Hotels, restaurants and leisure (continued) | |||||
Eldorado Resorts, Inc. | 6.000 | 04-01-25 | 465,000 | $485,344 | |
Golden Nugget, Inc. (B) | 6.750 | 10-15-24 | 580,000 | 599,575 | |
Jacobs Entertainment, Inc. (B) | 7.875 | 02-01-24 | 870,000 | 948,300 | |
MGM Growth Properties Operating Partnership LP | 4.500 | 09-01-26 | 665,000 | 656,688 | |
MGM Resorts International | 4.625 | 09-01-26 | 560,000 | 565,600 | |
Pinnacle Entertainment, Inc. | 5.625 | 05-01-24 | 755,000 | 807,850 | |
Royal Caribbean Cruises, Ltd. | 2.650 | 11-28-20 | 1,100,000 | 1,096,122 | |
Scientific Games International, Inc. (B) | 5.000 | 10-15-25 | 885,000 | 887,213 | |
Household durables 0.1% | |||||
RSI Home Products, Inc. (B) | 6.500 | 03-15-23 | 690,000 | 722,775 | |
Internet and direct marketing retail 0.2% | |||||
Amazon.com, Inc. (B) | 4.050 | 08-22-47 | 2,225,000 | 2,293,895 | |
Media 3.8% | |||||
AMC Entertainment Holdings, Inc. (E) | 5.750 | 06-15-25 | 1,005,000 | 979,875 | |
AMC Networks, Inc. | 4.750 | 08-01-25 | 715,000 | 714,106 | |
Block Communications, Inc. (B) | 6.875 | 02-15-25 | 1,160,000 | 1,206,400 | |
Cablevision Systems Corp. | 5.875 | 09-15-22 | 1,505,000 | 1,520,050 | |
CBS Corp. | 4.850 | 07-01-42 | 2,425,000 | 2,506,572 | |
CCO Holdings LLC (B) | 5.125 | 05-01-27 | 620,000 | 603,892 | |
CCO Holdings LLC (B) | 5.500 | 05-01-26 | 960,000 | 979,200 | |
Charter Communications Operating LLC | 5.375 | 05-01-47 | 2,525,000 | 2,607,142 | |
Charter Communications Operating LLC | 6.384 | 10-23-35 | 1,600,000 | 1,866,536 | |
Cinemark USA, Inc. | 4.875 | 06-01-23 | 970,000 | 982,125 | |
Comcast Corp. | 4.250 | 01-15-33 | 2,595,000 | 2,736,482 | |
Cox Communications, Inc. (B) | 3.500 | 08-15-27 | 2,625,000 | 2,565,371 | |
Discovery Communications LLC | 3.950 | 03-20-28 | 2,225,000 | 2,175,951 | |
DISH DBS Corp. | 7.750 | 07-01-26 | 2,335,000 | 2,399,213 | |
Nexstar Broadcasting, Inc. (B) | 5.625 | 08-01-24 | 990,000 | 1,022,789 | |
Omnicom Group, Inc. | 3.650 | 11-01-24 | 2,625,000 | 2,648,348 | |
Quebecor Media, Inc. | 5.750 | 01-15-23 | 670,000 | 708,525 | |
Regal Entertainment Group | 5.750 | 02-01-25 | 675,000 | 692,719 | |
Sinclair Television Group, Inc. (B) | 5.625 | 08-01-24 | 1,025,000 | 1,055,750 | |
Sirius XM Radio, Inc. (B) | 5.000 | 08-01-27 | 835,000 | 828,738 | |
TEGNA, Inc. | 6.375 | 10-15-23 | 550,000 | 574,668 | |
The EW Scripps Company (B) | 5.125 | 05-15-25 | 250,000 | 246,875 | |
The Interpublic Group of Companies, Inc. | 3.750 | 02-15-23 | 2,450,000 | 2,488,344 | |
Tribune Media Company | 5.875 | 07-15-22 | 1,035,000 | 1,064,756 | |
Unitymedia GmbH (B) | 6.125 | 01-15-25 | 430,000 | 452,575 | |
Virgin Media Finance PLC (B) | 6.000 | 10-15-24 | 800,000 | 818,000 | |
Multiline retail 0.3% | |||||
JC Penney Corp., Inc. (E) | 7.400 | 04-01-37 | 650,000 | 468,000 | |
Macy's Retail Holdings, Inc. | 2.875 | 02-15-23 | 800,000 | 752,767 | |
Macy's Retail Holdings, Inc. | 3.875 | 01-15-22 | 1,400,000 | 1,408,204 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Specialty retail 0.0% | |||||
PetSmart, Inc. (B) | 7.125 | 03-15-23 | 500,000 | $314,375 | |
Textiles, apparel and luxury goods 0.0% | |||||
Levi Strauss & Company | 5.000 | 05-01-25 | 525,000 | 543,375 | |
Consumer staples 2.1% | 19,808,582 | ||||
Beverages 0.5% | |||||
Anheuser-Busch InBev Finance, Inc. | 3.650 | 02-01-26 | 2,100,000 | 2,124,135 | |
Cott Holdings, Inc. (B) | 5.500 | 04-01-25 | 610,000 | 621,438 | |
Dr. Pepper Snapple Group, Inc. (B) | 3.430 | 06-15-27 | 2,075,000 | 2,019,688 | |
Dr. Pepper Snapple Group, Inc. | 3.430 | 06-15-27 | 125,000 | 121,668 | |
Food and staples retailing 0.6% | |||||
Albertsons Companies LLC | 6.625 | 06-15-24 | 475,000 | 451,250 | |
CVS Health Corp. | 2.750 | 12-01-22 | 1,275,000 | 1,242,012 | |
Safeway, Inc. | 7.250 | 02-01-31 | 960,000 | 825,600 | |
The Fresh Market, Inc. (B) | 9.750 | 05-01-23 | 787,000 | 548,933 | |
The Kroger Company | 4.450 | 02-01-47 | 2,250,000 | 2,248,303 | |
Food products 0.8% | |||||
Adecoagro SA (B) | 6.000 | 09-21-27 | 391,000 | 384,748 | |
B&G Foods, Inc. | 5.250 | 04-01-25 | 525,000 | 525,656 | |
Chobani LLC (B) | 7.500 | 04-15-25 | 540,000 | 572,400 | |
Dean Foods Company (B) | 6.500 | 03-15-23 | 545,000 | 539,550 | |
ESAL GmbH (B) | 6.250 | 02-05-23 | 60,000 | 58,200 | |
KazAgro National Management Holding JSC (B) | 4.625 | 05-24-23 | 254,000 | 258,496 | |
Kraft Heinz Foods Company (B) | 4.875 | 02-15-25 | 2,050,000 | 2,155,698 | |
MARB BondCo PLC (B) | 6.875 | 01-19-25 | 121,000 | 119,185 | |
Marfrig Holdings Europe BV (B) | 8.000 | 06-08-23 | 145,000 | 151,670 | |
Minerva Luxembourg SA (B) | 6.500 | 09-20-26 | 259,000 | 260,865 | |
Pilgrim's Pride Corp. (B) | 5.750 | 03-15-25 | 490,000 | 494,900 | |
Pilgrim's Pride Corp. (B) | 5.875 | 09-30-27 | 270,000 | 270,675 | |
Pinnacle Foods Finance LLC | 5.875 | 01-15-24 | 835,000 | 884,106 | |
Post Holdings, Inc. (B) | 5.000 | 08-15-26 | 545,000 | 532,056 | |
Post Holdings, Inc. (B) | 5.500 | 03-01-25 | 730,000 | 751,900 | |
Household products 0.1% | |||||
Energizer Holdings, Inc. (B) | 5.500 | 06-15-25 | 820,000 | 840,500 | |
Personal products 0.1% | |||||
Revlon Consumer Products Corp. | 5.750 | 02-15-21 | 360,000 | 278,100 | |
Revlon Consumer Products Corp. (E) | 6.250 | 08-01-24 | 820,000 | 526,850 | |
Energy 6.5% | 62,595,674 | ||||
Energy equipment and services 0.7% | |||||
Ensco PLC | 7.750 | 02-01-26 | 725,000 | 720,922 | |
Halliburton Company | 5.000 | 11-15-45 | 1,950,000 | 2,234,478 | |
Nabors Industries, Inc. (E) | 5.500 | 01-15-23 | 975,000 | 975,000 |
20 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Energy equipment and services (continued) | |||||
Rowan Companies, Inc. (E) | 7.375 | 06-15-25 | 1,185,000 | $1,214,258 | |
SESI LLC | 7.125 | 12-15-21 | 750,000 | 768,750 | |
SESI LLC (B) | 7.750 | 09-15-24 | 335,000 | 360,125 | |
Three Gorges Finance I Cayman Islands, Ltd. (B) | 3.150 | 06-02-26 | 497,000 | 477,259 | |
Oil, gas and consumable fuels 5.8% | |||||
Anadarko Petroleum Corp. | 6.450 | 09-15-36 | 1,800,000 | 2,240,253 | |
Andeavor | 3.800 | 04-01-28 | 3,325,000 | 3,271,042 | |
Apache Corp. | 5.100 | 09-01-40 | 2,150,000 | 2,323,101 | |
Boardwalk Pipelines LP | 4.950 | 12-15-24 | 2,125,000 | 2,234,261 | |
Callon Petroleum Company | 6.125 | 10-01-24 | 330,000 | 342,375 | |
Continental Resources, Inc. | 4.500 | 04-15-23 | 2,125,000 | 2,151,563 | |
Continental Resources, Inc. | 4.900 | 06-01-44 | 985,000 | 982,538 | |
Continental Resources, Inc. | 5.000 | 09-15-22 | 955,000 | 966,938 | |
Cosan Luxembourg SA (B) | 7.000 | 01-20-27 | 147,000 | 159,025 | |
Diamondback Energy, Inc. | 4.750 | 11-01-24 | 770,000 | 780,588 | |
Diamondback Energy, Inc. (B) | 5.375 | 05-31-25 | 220,000 | 228,525 | |
EP Energy LLC (B) | 8.000 | 02-15-25 | 475,000 | 375,250 | |
EP Energy LLC (B) | 9.375 | 05-01-24 | 813,000 | 689,018 | |
EP PetroEcuador (3 month LIBOR + 5.630%) (A) | 7.316 | 09-24-19 | 225,474 | 230,547 | |
EQT Midstream Partners LP | 4.000 | 08-01-24 | 3,650,000 | 3,654,824 | |
Eterna Capital Pte, Ltd. (6.000% Cash or PIK) | 6.000 | 12-11-22 | 190,000 | 202,350 | |
FTS International, Inc. | 6.250 | 05-01-22 | 485,000 | 489,850 | |
Geopark, Ltd. (B) | 6.500 | 09-21-24 | 245,000 | 252,963 | |
Indo Energy Finance II BV | 6.375 | 01-24-23 | 74,000 | 75,491 | |
KazMunayGas National Company JSC (B) | 6.375 | 04-09-21 | 348,000 | 376,457 | |
KazMunayGas National Company JSC (B) | 7.000 | 05-05-20 | 184,000 | 197,654 | |
KazTransGas JSC (B) | 4.375 | 09-26-27 | 607,000 | 608,639 | |
Kinder Morgan, Inc. | 5.550 | 06-01-45 | 825,000 | 910,188 | |
Laredo Petroleum, Inc. | 5.625 | 01-15-22 | 740,000 | 749,250 | |
Marathon Petroleum Corp. | 6.500 | 03-01-41 | 1,725,000 | 2,209,259 | |
MPLX LP | 5.200 | 03-01-47 | 1,600,000 | 1,763,162 | |
Murphy Oil Corp. | 4.450 | 12-01-22 | 405,000 | 406,519 | |
Murphy Oil Corp. | 6.875 | 08-15-24 | 310,000 | 331,130 | |
Oasis Petroleum, Inc. (E) | 6.875 | 03-15-22 | 975,000 | 1,004,250 | |
Pertamina Persero PT | 5.250 | 05-23-21 | 242,000 | 257,527 | |
Pertamina Persero PT (B) | 5.625 | 05-20-43 | 513,000 | 552,834 | |
Pertamina Persero PT | 6.000 | 05-03-42 | 200,000 | 225,528 | |
Pertamina Persero PT | 6.450 | 05-30-44 | 458,000 | 544,329 | |
Petroamazonas EP (B) | 4.625 | 02-16-20 | 200,000 | 196,400 | |
Petroamazonas EP (B) | 4.625 | 11-06-20 | 200,000 | 194,491 | |
Petrobras Global Finance BV | 7.375 | 01-17-27 | 578,000 | 641,089 | |
Petrobras Global Finance BV | 8.750 | 05-23-26 | 1,721,000 | 2,070,363 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy (continued) | |||||
Oil, gas and consumable fuels (continued) | |||||
Petroleos de Venezuela SA (D) | 6.000 | 05-16-24 | 3,516,996 | $826,494 | |
Petroleos Mexicanos | 4.250 | 01-15-25 | 336,000 | 332,707 | |
Petroleos Mexicanos | 4.500 | 01-23-26 | 315,000 | 310,275 | |
Petroleos Mexicanos | 4.625 | 09-21-23 | 89,000 | 91,493 | |
Petroleos Mexicanos | 4.875 | 01-24-22 | 660,000 | 686,565 | |
Petroleos Mexicanos | 5.625 | 01-23-46 | 46,000 | 42,320 | |
Petroleos Mexicanos | 6.375 | 01-23-45 | 455,000 | 455,683 | |
Petroleos Mexicanos (B) | 6.500 | 03-13-27 | 687,000 | 750,548 | |
Petroleos Mexicanos | 6.500 | 03-13-27 | 632,000 | 690,460 | |
Petroleos Mexicanos | 6.500 | 06-02-41 | 103,000 | 106,476 | |
Petroleos Mexicanos (B) | 6.750 | 09-21-47 | 1,014,000 | 1,062,165 | |
Petroleos Mexicanos | 6.750 | 09-21-47 | 448,000 | 469,280 | |
Petroleos Mexicanos | 7.190 | 09-12-24 | MXN | 4,586,400 | 220,568 |
Petroleos Mexicanos | 9.500 | 09-15-27 | 97,000 | 130,596 | |
Petronas Capital, Ltd. | 3.500 | 03-18-25 | 260,000 | 262,570 | |
Phillips 66 | 4.650 | 11-15-34 | 1,950,000 | 2,131,837 | |
PTTEP Treasury Center Company, Ltd. (4.875% to 6-18-19, then 5 Year CMT + 3.177%) (B)(F) | 4.875 | 06-18-19 | 234,000 | 235,881 | |
QEP Resources, Inc. | 5.250 | 05-01-23 | 985,000 | 1,004,700 | |
Range Resources Corp. | 5.000 | 03-15-23 | 500,000 | 498,750 | |
RSP Permian, Inc. | 5.250 | 01-15-25 | 490,000 | 508,375 | |
Sabine Pass Liquefaction LLC | 5.875 | 06-30-26 | 2,000,000 | 2,234,231 | |
Sinopec Group Overseas Development 2012, Ltd. (B) | 3.900 | 05-17-22 | 501,000 | 512,553 | |
Sinopec Group Overseas Development 2016, Ltd. (B) | 2.750 | 05-03-21 | 228,000 | 225,964 | |
Sinopec Group Overseas Development 2016, Ltd. (B) | 3.500 | 05-03-26 | 384,000 | 378,342 | |
SM Energy Company (E) | 5.625 | 06-01-25 | 400,000 | 396,000 | |
SM Energy Company (E) | 6.125 | 11-15-22 | 625,000 | 649,219 | |
Southwestern Energy Company | 6.700 | 01-23-25 | 705,000 | 717,338 | |
State Oil Company of the Azerbaijan Republic | 4.750 | 03-13-23 | 226,000 | 231,145 | |
Targa Resources Partners LP | 4.250 | 11-15-23 | 600,000 | 592,500 | |
Western Gas Partners LP | 5.450 | 04-01-44 | 1,100,000 | 1,192,901 | |
Whiting Petroleum Corp. (B) | 6.625 | 01-15-26 | 700,000 | 716,625 | |
Williams Partners LP | 4.875 | 03-15-24 | 2,200,000 | 2,290,750 | |
Financials 6.0% | 57,666,192 | ||||
Banks 3.6% | |||||
Banco Nacional de Comercio Exterior SNC (3.800% to 8-11-21, then 5 Year CMT + 3.000%) (B) | 3.800 | 08-11-26 | 443,000 | 441,893 | |
Banco Nacional de Comercio Exterior SNC (3.800% to 8-11-21, then 5 Year CMT + 3.000%) | 3.800 | 08-11-26 | 322,000 | 321,195 |
22 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Financials (continued) | |||||
Banks (continued) | |||||
Banco Nacional de Costa Rica (B) | 5.875 | 04-25-21 | 336,000 | $346,080 | |
Bank of America Corp. | 3.300 | 01-11-23 | 2,950,000 | 2,977,541 | |
Bank of America Corp. | 3.950 | 04-21-25 | 2,300,000 | 2,340,703 | |
Barclays PLC | 4.836 | 05-09-28 | 1,075,000 | 1,104,274 | |
Brazil Loan Trust 1 (B) | 5.477 | 07-24-23 | 188,286 | 196,855 | |
Citigroup, Inc. | 2.700 | 03-30-21 | 100,000 | 99,372 | |
Citigroup, Inc. | 4.400 | 06-10-25 | 2,600,000 | 2,704,739 | |
Citigroup, Inc. | 4.600 | 03-09-26 | 3,575,000 | 3,768,069 | |
Industrial & Commercial Bank of China, Ltd. (6.000% to 12-10-19, then 5 Year CMT + 4.382%) (F) | 6.000 | 12-10-19 | 452,000 | 467,695 | |
Intesa Sanpaolo SpA (B) | 3.875 | 07-14-27 | 4,450,000 | 4,351,902 | |
JPMorgan Chase & Co. | 2.972 | 01-15-23 | 2,200,000 | 2,188,682 | |
Santander Holdings USA, Inc. (B) | 3.700 | 03-28-22 | 1,050,000 | 1,058,865 | |
Sberbank of Russia (5.500% to 2-26-19, then 5 Year CMT + 4.023%) (B) | 5.500 | 02-26-24 | 432,000 | 439,560 | |
Synovus Financial Corp. | 3.125 | 11-01-22 | 2,500,000 | 2,450,750 | |
The PNC Financial Services Group, Inc. | 3.900 | 04-29-24 | 2,375,000 | 2,449,684 | |
The Royal Bank of Scotland Group PLC | 6.100 | 06-10-23 | 1,975,000 | 2,143,236 | |
Turkiye Garanti Bankasi AS (6.125% to 5-24-22, then 5 Year U.S. Swap Rate + 4.220%) (B) | 6.125 | 05-24-27 | 311,000 | 311,246 | |
Turkiye Is Bankasi AS (7.000% to 6-29-23, then 5 Year U.S. Swap Rate + 5.117%) (B) | 7.000 | 06-29-28 | 124,000 | 124,967 | |
Wells Fargo & Company | 2.100 | 07-26-21 | 2,325,000 | 2,267,933 | |
Wells Fargo & Company (3.584% to 5-22-27, then 3 month LIBOR + 1.310%) | 3.584 | 05-22-28 | 2,000,000 | 2,008,886 | |
Capital markets 1.0% | |||||
1MDB Global Investments, Ltd. | 4.400 | 03-09-23 | 2,000,000 | 1,951,846 | |
Deutsche Bank AG | 3.700 | 05-30-24 | 2,225,000 | 2,213,349 | |
Indika Energy Capital II Pte, Ltd. (B) | 6.875 | 04-10-22 | 20,000 | 20,907 | |
Morgan Stanley | 4.100 | 05-22-23 | 2,125,000 | 2,198,711 | |
The Goldman Sachs Group, Inc. | 3.000 | 04-26-22 | 3,375,000 | 3,354,875 | |
Consumer finance 0.7% | |||||
Capital One Financial Corp. | 3.750 | 03-09-27 | 4,325,000 | 4,296,651 | |
Discover Bank | 4.250 | 03-13-26 | 2,500,000 | 2,560,985 | |
Diversified financial services 0.2% | |||||
Enel Finance International NV (B) | 2.875 | 05-25-22 | 2,200,000 | 2,169,948 | |
Insurance 0.5% | |||||
American International Group, Inc. | 3.875 | 01-15-35 | 2,250,000 | 2,184,243 | |
Nippon Life Insurance Company (5.100% to 10-16-24, then 5 Year U.S. ISDAFIX + 3.650%) (B) | 5.100 | 10-16-44 | 2,025,000 | 2,150,550 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 23 |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care 1.8% | $17,757,527 | ||||
Biotechnology 0.3% | |||||
Gilead Sciences, Inc. | 4.500 | 02-01-45 | 2,575,000 | 2,798,671 | |
Health care equipment and supplies 0.5% | |||||
Becton, Dickinson and Company (B) | 3.000 | 05-15-26 | 1,725,000 | 1,725,000 | |
Hologic, Inc. (B) | 4.375 | 10-15-25 | 420,000 | 420,000 | |
Medtronic, Inc. | 3.150 | 03-15-22 | 1,225,000 | 1,240,443 | |
Medtronic, Inc. | 4.625 | 03-15-45 | 925,000 | 1,046,980 | |
Health care providers and services 0.7% | |||||
Cardinal Health, Inc. | 3.410 | 06-15-27 | 2,300,000 | 2,217,499 | |
Community Health Systems, Inc. | 6.250 | 03-31-23 | 1,175,000 | 1,086,875 | |
Encompass Health Corp. | 5.750 | 11-01-24 | 695,000 | 708,900 | |
Envision Healthcare Corp. | 5.625 | 07-15-22 | 415,000 | 422,263 | |
Envision Healthcare Corp. (B) | 6.250 | 12-01-24 | 335,000 | 354,681 | |
HCA, Inc. | 5.375 | 02-01-25 | 835,000 | 853,788 | |
Team Health Holdings, Inc. (B) | 6.375 | 02-01-25 | 650,000 | 606,125 | |
Tenet Healthcare Corp. (B) | 4.625 | 07-15-24 | 950,000 | 933,375 | |
Pharmaceuticals 0.3% | |||||
Allergan Funding SCS | 4.550 | 03-15-35 | 525,000 | 548,645 | |
Endo Finance LLC (B) | 6.000 | 02-01-25 | 855,000 | 642,857 | |
Mallinckrodt International Finance SA (B) | 5.625 | 10-15-23 | 915,000 | 782,325 | |
Valeant Pharmaceuticals International, Inc. (B) | 5.875 | 05-15-23 | 965,000 | 871,395 | |
Valeant Pharmaceuticals International, Inc. (B) | 6.500 | 03-15-22 | 475,000 | 497,705 | |
Industrials 2.6% | 25,400,991 | ||||
Aerospace and defense 0.4% | |||||
Northrop Grumman Corp. | 2.930 | 01-15-25 | 1,875,000 | 1,824,896 | |
Northrop Grumman Corp. | 4.030 | 10-15-47 | 1,950,000 | 1,982,231 | |
Air freight and logistics 0.3% | |||||
FedEx Corp. | 4.400 | 01-15-47 | 2,050,000 | 2,172,446 | |
Gol Finance, Inc. (B) | 7.000 | 01-31-25 | 223,000 | 223,000 | |
Park-Ohio Industries, Inc. | 6.625 | 04-15-27 | 820,000 | 879,204 | |
Building products 0.1% | |||||
American Woodmark Corp. (B) | 4.875 | 03-15-26 | 390,000 | 392,925 | |
Griffon Corp. | 5.250 | 03-01-22 | 650,000 | 661,375 | |
Griffon Corp. (B) | 5.250 | 03-01-22 | 255,000 | 259,463 | |
Commercial services and supplies 0.3% | |||||
Covanta Holding Corp. | 5.875 | 07-01-25 | 980,000 | 997,150 | |
Matthews International Corp. (B) | 5.250 | 12-01-25 | 725,000 | 735,875 | |
Waste Pro USA, Inc. (B) | 5.500 | 02-15-26 | 480,000 | 488,400 | |
Wrangler Buyer Corp. (B) | 6.000 | 10-01-25 | 370,000 | 382,025 | |
Construction and engineering 0.2% | |||||
AECOM | 5.125 | 03-15-27 | 780,000 | 780,975 | |
MasTec, Inc. | 4.875 | 03-15-23 | 975,000 | 989,625 |
24 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Industrial conglomerates 0.0% | |||||
Axtel SAB de CV (B) | 6.375 | 11-14-24 | 214,000 | $222,025 | |
Machinery 0.6% | |||||
Allison Transmission, Inc. (B) | 4.750 | 10-01-27 | 615,000 | 611,925 | |
Gates Global LLC (B) | 6.000 | 07-15-22 | 794,000 | 811,865 | |
John Deere Capital Corp. | 2.150 | 09-08-22 | 2,500,000 | 2,419,297 | |
RBS Global, Inc. (B) | 4.875 | 12-15-25 | 405,000 | 410,063 | |
SPX FLOW, Inc. (B) | 5.625 | 08-15-24 | 850,000 | 881,875 | |
Welbilt, Inc. | 9.500 | 02-15-24 | 400,000 | 452,000 | |
Road and rail 0.2% | |||||
ERAC USA Finance LLC (B) | 4.200 | 11-01-46 | 2,250,000 | 2,182,240 | |
Trading companies and distributors 0.5% | |||||
Air Lease Corp. | 3.625 | 12-01-27 | 4,300,000 | 4,197,790 | |
Beacon Escrow Corp. (B) | 4.875 | 11-01-25 | 325,000 | 323,375 | |
Transportation infrastructure 0.0% | |||||
Rumo Luxembourg Sarl (B) | 7.375 | 02-09-24 | 109,000 | 118,946 | |
Information technology 1.8% | 17,468,994 | ||||
Communications equipment 0.2% | |||||
Hughes Satellite Systems Corp. | 6.625 | 08-01-26 | 610,000 | 645,075 | |
Seagate HDD Cayman | 4.875 | 06-01-27 | 1,396,000 | 1,373,346 | |
Internet software and services 0.4% | |||||
Alibaba Group Holding, Ltd. | 4.200 | 12-06-47 | 2,125,000 | 2,131,823 | |
Tencent Holdings, Ltd. (B) | 3.595 | 01-19-28 | 1,875,000 | 1,843,614 | |
Semiconductors and semiconductor equipment 0.5% | |||||
Entegris, Inc. (B) | 4.625 | 02-10-26 | 745,000 | 747,794 | |
Versum Materials, Inc. (B) | 5.500 | 09-30-24 | 740,000 | 784,400 | |
Xilinx, Inc. | 2.950 | 06-01-24 | 3,350,000 | 3,278,389 | |
Software 0.7% | |||||
Microsoft Corp. | 2.650 | 11-03-22 | 2,200,000 | 2,190,070 | |
Nuance Communications, Inc. | 5.625 | 12-15-26 | 900,000 | 930,060 | |
Oracle Corp. | 4.300 | 07-08-34 | 1,825,000 | 1,989,961 | |
PTC, Inc. | 6.000 | 05-15-24 | 595,000 | 633,675 | |
Symantec Corp. (B) | 5.000 | 04-15-25 | 550,000 | 560,906 | |
Technology hardware, storage and peripherals 0.0% | |||||
Western Digital Corp. (G) | 4.750 | 02-15-26 | 355,000 | 359,881 | |
Materials 2.3% | 21,988,361 | ||||
Chemicals 0.3% | |||||
Axalta Coating Systems LLC (B) | 4.875 | 08-15-24 | 350,000 | 361,375 | |
CF Industries, Inc. | 5.150 | 03-15-34 | 1,220,000 | 1,230,675 | |
Platform Specialty Products Corp. (B) | 5.875 | 12-01-25 | 665,000 | 675,806 | |
Trinseo Materials Operating SCA (B) | 5.375 | 09-01-25 | 850,000 | 870,995 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 25 |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials (continued) | |||||
Construction materials 0.4% | |||||
Standard Industries, Inc. (B) | 5.375 | 11-15-24 | 450,000 | $465,750 | |
Summit Materials LLC | 6.125 | 07-15-23 | 460,000 | 474,950 | |
U.S. Concrete, Inc. | 6.375 | 06-01-24 | 555,000 | 597,069 | |
Vulcan Materials Company | 4.500 | 06-15-47 | 2,175,000 | 2,201,183 | |
Containers and packaging 0.4% | |||||
Ardagh Packaging Finance PLC (B) | 6.000 | 02-15-25 | 600,000 | 619,500 | |
Berry Global, Inc. (B) | 4.500 | 02-15-26 | 310,000 | 309,132 | |
BWAY Holding Company (B) | 7.250 | 04-15-25 | 440,000 | 459,250 | |
Cascades, Inc. (B) | 5.500 | 07-15-22 | 975,000 | 994,500 | |
Crown Americas LLC (B) | 4.750 | 02-01-26 | 630,000 | 634,725 | |
Plastipak Holdings, Inc. (B) | 6.250 | 10-15-25 | 720,000 | 747,000 | |
Metals and mining 0.8% | |||||
AK Steel Corp. (E) | 7.000 | 03-15-27 | 630,000 | 644,175 | |
Anglo American Capital PLC (B) | 4.000 | 09-11-27 | 2,350,000 | 2,324,099 | |
Coeur Mining, Inc. | 5.875 | 06-01-24 | 800,000 | 796,000 | |
Commercial Metals Company | 5.375 | 07-15-27 | 635,000 | 652,463 | |
Kaiser Aluminum Corp. | 5.875 | 05-15-24 | 650,000 | 693,875 | |
Newmont Mining Corp. | 6.250 | 10-01-39 | 2,050,000 | 2,571,243 | |
Vedanta Resources PLC (B) | 6.125 | 08-09-24 | 253,000 | 255,269 | |
Paper and forest products 0.4% | |||||
Boise Cascade Company (B) | 5.625 | 09-01-24 | 865,000 | 903,925 | |
Flex Acquisition Company, Inc. (B) | 6.875 | 01-15-25 | 400,000 | 410,500 | |
Louisiana-Pacific Corp. | 4.875 | 09-15-24 | 730,000 | 750,988 | |
Mercer International, Inc. (B) | 5.500 | 01-15-26 | 515,000 | 521,438 | |
Mercer International, Inc. | 7.750 | 12-01-22 | 156,000 | 166,051 | |
Norbord, Inc. (B) | 6.250 | 04-15-23 | 605,000 | 656,425 | |
Real estate 1.2% | 11,065,598 | ||||
Equity real estate investment trusts 1.2% | |||||
AvalonBay Communities, Inc. | 3.200 | 01-15-28 | 1,125,000 | 1,099,305 | |
Crown Castle International Corp. | 3.200 | 09-01-24 | 3,350,000 | 3,269,410 | |
DDR Corp. | 4.250 | 02-01-26 | 2,125,000 | 2,157,276 | |
Digital Realty Trust LP | 4.750 | 10-01-25 | 1,975,000 | 2,112,788 | |
Select Income REIT | 4.250 | 05-15-24 | 2,475,000 | 2,426,819 | |
Telecommunication services 1.9% | 18,270,606 | ||||
Diversified telecommunication services 1.4% | |||||
AT&T, Inc. | 3.400 | 08-14-24 | 1,875,000 | 1,874,989 | |
AT&T, Inc. | 4.900 | 08-14-37 | 3,550,000 | 3,597,746 | |
CenturyLink, Inc. (E) | 5.625 | 04-01-25 | 500,000 | 461,875 | |
Frontier Communications Corp. | 9.000 | 08-15-31 | 1,544,000 | 1,007,460 | |
IHS Netherlands Holdco BV (B) | 9.500 | 10-27-21 | 238,000 | 253,772 | |
Intelsat Jackson Holdings SA | 5.500 | 08-01-23 | 895,000 | 702,575 | |
SFR Group SA (B) | 7.375 | 05-01-26 | 245,000 | 241,478 |
26 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Telecommunication services (continued) | |||||
Diversified telecommunication services (continued) | |||||
UPC Holding BV (B) | 5.500 | 01-15-28 | 250,000 | $239,845 | |
UPCB Finance IV, Ltd. (B) | 5.375 | 01-15-25 | 710,000 | 722,425 | |
Verizon Communications, Inc. | 3.376 | 02-15-25 | 2,150,000 | 2,130,869 | |
West Corp. (B) | 8.500 | 10-15-25 | 690,000 | 679,650 | |
Windstream Services LLC (E) | 7.500 | 04-01-23 | 585,000 | 371,475 | |
Zayo Group LLC (B) | 5.750 | 01-15-27 | 815,000 | 828,285 | |
Ziggo Secured Finance BV (B) | 5.500 | 01-15-27 | 710,000 | 704,675 | |
Wireless telecommunication services 0.5% | |||||
Digicel Group, Ltd. (B) | 7.125 | 04-01-22 | 125,000 | 117,813 | |
Sprint Capital Corp. | 8.750 | 03-15-32 | 1,860,000 | 2,199,450 | |
T-Mobile USA, Inc. | 5.375 | 04-15-27 | 595,000 | 624,750 | |
T-Mobile USA, Inc. | 6.500 | 01-15-26 | 620,000 | 671,925 | |
Wind Tre SpA (B) | 5.000 | 01-20-26 | 925,000 | 839,549 | |
Utilities 2.7% | 26,063,650 | ||||
Electric utilities 1.2% | |||||
Broadcom Corp. (B) | 2.375 | 01-15-20 | 2,200,000 | 2,177,035 | |
FirstEnergy Corp. | 4.850 | 07-15-47 | 2,075,000 | 2,296,980 | |
Georgia Power Company | 4.300 | 03-15-42 | 3,150,000 | 3,329,180 | |
NSTAR Electric Company | 3.200 | 05-15-27 | 2,225,000 | 2,198,653 | |
Pampa Energia SA (B) | 7.375 | 07-21-23 | 153,000 | 165,399 | |
Pampa Energia SA (B) | 7.500 | 01-24-27 | 183,000 | 199,699 | |
South Carolina Electric & Gas Company | 4.100 | 06-15-46 | 1,100,000 | 1,115,099 | |
Gas utilities 0.0% | |||||
Southern Gas Corridor CJSC (B) | 6.875 | 03-24-26 | 284,000 | 324,768 | |
Independent power and renewable electricity producers 0.8% | |||||
Calpine Corp. (E) | 5.750 | 01-15-25 | 1,196,000 | 1,133,210 | |
Dynegy, Inc. (B) | 8.000 | 01-15-25 | 1,110,000 | 1,207,125 | |
Dynegy, Inc. (B) | 8.125 | 01-30-26 | 425,000 | 468,690 | |
Exelon Generation Company LLC | 5.600 | 06-15-42 | 2,050,000 | 2,236,703 | |
GenOn Energy, Inc. (D) | 9.500 | 10-15-18 | 1,490,000 | 1,210,625 | |
NRG Energy, Inc. (B) | 5.750 | 01-15-28 | 625,000 | 625,125 | |
NRG Energy, Inc. | 6.250 | 07-15-22 | 875,000 | 906,719 | |
Multi-utilities 0.7% | |||||
Dominion Energy, Inc. | 2.579 | 07-01-20 | 3,275,000 | 3,250,280 | |
DTE Energy Company | 3.850 | 12-01-23 | 2,075,000 | 2,135,235 | |
Sempra Energy | 4.000 | 02-01-48 | 1,100,000 | 1,083,125 | |
Term loans (H) 23.3% | $223,474,751 | ||||
(Cost $224,427,656) | |||||
Consumer discretionary 5.9% | 56,356,553 | ||||
Automobiles 0.1% | |||||
CH Hold Corp. (1 month LIBOR + 3.000%) | 4.574 | 02-01-24 | 1,430,971 | 1,442,604 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 27 |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Automobiles and components 0.1% | |||||
Dragon Merger Sub LLC (3 month LIBOR + 4.000%) | 5.693 | 07-24-24 | 842,888 | $853,424 | |
Diversified consumer services 0.2% | |||||
Weight Watchers International, Inc. (1 and 3 month LIBOR + 4.750%) | 6.426 | 11-29-24 | 2,200,000 | 2,225,432 | |
Hotels, restaurants and leisure 1.4% | |||||
Aristocrat International Pty, Ltd. (3 month LIBOR + 2.000%) | 3.744 | 10-19-24 | 885,000 | 891,266 | |
Boyd Gaming Corp. (1 week LIBOR + 2.500%) | 3.968 | 09-15-23 | 1,434,913 | 1,444,786 | |
Caesars Resort Collection LLC (1 month LIBOR + 2.750%) | 4.324 | 12-22-24 | 1,900,000 | 1,922,097 | |
CityCenter Holdings LLC (1 month LIBOR + 2.500%) | 4.074 | 04-18-24 | 1,425,835 | 1,436,172 | |
Golden Nugget, Inc. (3 month LIBOR + 3.250%) | 4.875 | 10-04-23 | 1,703,632 | 1,722,628 | |
Intrawest Resorts Holdings, Inc. (1 month LIBOR + 3.250%) | 4.824 | 07-31-24 | 2,097,000 | 2,112,728 | |
New Red Finance, Inc. (1 and 3 month LIBOR + 2.250%) | 3.870 | 02-16-24 | 1,831,662 | 1,841,737 | |
Scientific Games International, Inc. (1 month LIBOR + 3.250%) | 4.824 | 08-14-24 | 1,825,425 | 1,834,808 | |
Leisure products 0.2% | |||||
Hayward Industries, Inc. (1 month LIBOR + 3.500%) | 5.074 | 08-05-24 | 1,486,275 | 1,496,798 | |
Media 3.0% | |||||
AMC Entertainment Holdings, Inc. (1 month LIBOR + 2.250%) | 3.810 | 12-15-22 | 2,557,338 | 2,565,649 | |
Charter Communications Operating LLC (1 month LIBOR + 2.000%) | 3.580 | 04-30-25 | 1,475,000 | 1,483,068 | |
Creative Artists Agency LLC (1 month LIBOR + 3.500%) | 5.060 | 02-15-24 | 2,598,750 | 2,608,495 | |
CSC Holdings LLC (1 month LIBOR + 2.250%) | 3.810 | 07-17-25 | 1,324,497 | 1,325,875 | |
Cumulus Media Holdings, Inc. (1 month LIBOR + 3.250%) | 4.830 | 12-23-20 | 2,774,662 | 2,381,437 | |
Delta 2 Lux Sarl (1 week LIBOR + 3.000%) | 4.569 | 02-01-24 | 1,770,902 | 1,777,100 | |
Hubbard Radio LLC (1 month LIBOR + 3.250%) | 4.830 | 05-27-22 | 1,795,625 | 1,806,094 | |
Mission Broadcasting, Inc. (1 month LIBOR + 2.500%) | 4.068 | 01-17-24 | 144,340 | 145,170 | |
Nexstar Broadcasting, Inc. (1 month LIBOR + 2.500%) | 4.068 | 01-17-24 | 1,146,246 | 1,152,837 | |
Quebecor Media, Inc. (3 month LIBOR + 2.250%) | 3.663 | 08-17-20 | 1,374,061 | 1,378,073 | |
Raycom TV Broadcasting LLC (1 month LIBOR + 2.750%) | 4.317 | 08-23-24 | 1,995,000 | 1,999,988 | |
Regal Cinemas Corp. (1 month LIBOR + 2.000%) | 3.574 | 04-01-22 | 2,308,400 | 2,308,700 |
28 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Consumer discretionary (continued) | |||||
Media (continued) | |||||
Sinclair Television Group, Inc. (I) | TBD | 12-12-24 | 2,115,000 | $2,132,618 | |
Tribune Media Company (1 month LIBOR + 3.000%) | 4.574 | 12-27-20 | 183,524 | 183,639 | |
Tribune Media Company (1 month LIBOR + 3.000%) | 4.574 | 01-27-24 | 2,287,387 | 2,290,246 | |
Unitymedia Finance LLC (1 month LIBOR + 2.250%) | 3.810 | 09-30-25 | 1,475,000 | 1,478,068 | |
Virgin Media Bristol LLC (1 month LIBOR + 2.500%) | 4.060 | 01-15-26 | 1,520,000 | 1,528,451 | |
Multiline retail 0.3% | |||||
JC Penney Corp., Inc. (3 month LIBOR + 4.250%) | 5.729 | 06-23-23 | 2,658,904 | 2,560,312 | |
Specialty retail 0.6% | |||||
Bass Pro Group LLC (1 month LIBOR + 5.000%) | 6.567 | 09-25-24 | 2,857,838 | 2,872,127 | |
Petco Animal Supplies, Inc. (3 month LIBOR + 3.000%) | 4.772 | 01-26-23 | 1,971,760 | 1,489,172 | |
PetSmart, Inc. (1 month LIBOR + 3.000%) | 4.570 | 03-11-22 | 2,057,810 | 1,664,954 | |
Consumer staples 2.1% | 20,536,921 | ||||
Beverages 0.2% | |||||
Refresco Group NV (I) | TBD | 09-26-24 | 1,095,000 | 1,097,738 | |
Refresco Group NV (I) | TBD | 12-14-24 | 1,095,000 | 1,097,738 | |
Food and staples retailing 0.5% | |||||
Albertson's LLC (1 month LIBOR + 2.750%) | 4.324 | 08-25-21 | 3,140,593 | 3,120,965 | |
Hearthside Group Holdings LLC (1 month LIBOR + 3.000%) | 4.574 | 06-02-21 | 1,243,534 | 1,250,535 | |
Food products 0.8% | |||||
Chobani LLC (1 month LIBOR + 3.500%) | 5.074 | 10-10-23 | 1,771,613 | 1,784,900 | |
Dole Food Company, Inc. (Prime rate + 1.750% and 1 and 3 month LIBOR + 2.750%) | 4.317 | 04-06-24 | 1,704,875 | 1,709,137 | |
Hostess Brands LLC (1 month LIBOR + 2.250%) | 3.824 | 08-03-22 | 1,754,622 | 1,765,588 | |
Nomad Foods Europe Midco, Ltd. (1 month LIBOR + 2.250%) | 3.810 | 05-15-24 | 1,455,000 | 1,462,275 | |
Post Holdings, Inc. (1 month LIBOR + 2.250%) | 3.830 | 05-24-24 | 1,402,950 | 1,411,129 | |
Personal products 0.6% | |||||
Albea Beauty Holdings SA (3 and 6 month LIBOR + 3.750%) | 5.408 | 04-20-24 | 2,300,128 | 2,321,220 | |
Prestige Brands, Inc. (1 month LIBOR + 2.750%) | 4.324 | 01-26-24 | 1,239,601 | 1,250,707 | |
Revlon Consumer Products Corp. (1 month LIBOR + 3.500%) | 5.074 | 09-07-23 | 2,883,500 | 2,264,989 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 29 |
Rate (%) | Maturity date | Par value^ | Value | ||
Energy 0.5% | $4,725,955 | ||||
Energy equipment and services 0.0% | |||||
Paragon Offshore, Ltd. (3 month LIBOR + 1.000%) | 3.867 | 07-18-22 | 94,629 | 79,370 | |
Southcross Holdings Borrower LP (3.500% Cash or 5.500% PIK) | 3.500 | 04-13-23 | 239,684 | 236,489 | |
Oil, gas and consumable fuels 0.5% | |||||
FTS International, Inc. (1 month LIBOR + 4.750%) | 6.324 | 04-16-21 | 1,721,000 | 1,718,126 | |
Granite Acquisition, Inc. (3 month LIBOR + 3.500%) | 5.193 | 12-19-21 | 114,913 | 116,672 | |
Granite Acquisition, Inc. (3 month LIBOR + 3.500%) | 5.195 | 12-19-21 | 2,536,464 | 2,575,298 | |
Financials 0.8% | 7,746,227 | ||||
Capital markets 0.3% | |||||
Onex Wizard Acquisition Company II SCA (1 month LIBOR + 3.000%) | 4.574 | 03-13-22 | 1,745,087 | 1,756,430 | |
Sequa Mezzanine Holdings LLC (3 month LIBOR + 5.000%) | 6.549 | 11-28-21 | 1,233,800 | 1,250,765 | |
Diversified financial services 0.4% | |||||
AlixPartners LLP (3 month LIBOR + 2.750%) | 4.443 | 04-04-24 | 1,454,013 | 1,464,103 | |
Duff & Phelps Corp. (I) | TBD | 11-29-24 | 850,000 | 857,973 | |
TKC Holdings, Inc. (2 and 3 month LIBOR + 4.250%) | 6.030 | 02-01-23 | 1,424,238 | 1,440,260 | |
Insurance 0.1% | |||||
USI, Inc. (3 month LIBOR + 3.000%) | 4.693 | 05-16-24 | 972,563 | 976,696 | |
Health care 2.0% | 19,072,748 | ||||
Health care equipment and supplies 0.5% | |||||
Air Medical Group Holdings, Inc. (3 month LIBOR + 3.250%) | 4.943 | 04-28-22 | 2,847,187 | 2,872,100 | |
Kinetic Concepts, Inc. (3 month LIBOR + 3.250%) | 4.943 | 02-02-24 | 2,288,500 | 2,290,216 | |
Health care providers and services 1.0% | |||||
Air Methods Corp. (3 month LIBOR + 3.500%) | 5.193 | 04-21-24 | 2,546,162 | 2,558,893 | |
Community Health Systems, Inc. (3 month LIBOR + 2.750%) | 4.229 | 12-31-19 | 961,091 | 947,876 | |
Community Health Systems, Inc. (3 month LIBOR + 3.000%) | 4.479 | 01-27-21 | 701,146 | 687,522 | |
DaVita, Inc. (1 month LIBOR + 2.750%) | 4.324 | 06-24-21 | 1,245,208 | 1,260,773 | |
Surgery Center Holdings, Inc. (1 month LIBOR + 3.250%) | 4.830 | 09-02-24 | 1,229,918 | 1,230,938 | |
Team Health, Inc. (1 month LIBOR + 2.750%) | 4.324 | 02-06-24 | 1,916,408 | 1,878,079 | |
US Renal Care, Inc. (3 month LIBOR + 4.250%) | 5.943 | 12-31-22 | 664,863 | 665,069 |
30 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Health care (continued) | |||||
Health care technology 0.2% | |||||
Change Healthcare Holdings LLC (1 month LIBOR + 2.750%) | 4.324 | 03-01-24 | 1,813,297 | $1,824,177 | |
Life sciences tools and services 0.2% | |||||
Jaguar Holding Company II (1 and 3 month LIBOR + 2.750%) | 4.387 | 08-18-22 | 1,478,377 | 1,488,356 | |
Pharmaceuticals 0.1% | |||||
Valeant Pharmaceuticals International, Inc. (1 month LIBOR + 3.500%) | 5.060 | 04-01-22 | 1,348,680 | 1,368,749 | |
Industrials 4.2% | 40,242,208 | ||||
Building products 0.3% | |||||
HNC Holdings, Inc. (1 month LIBOR + 4.000%) | 5.574 | 10-05-23 | 1,550,250 | 1,570,605 | |
NCI Building Systems, Inc. (I) | TBD | 01-26-25 | 1,150,000 | 1,152,162 | |
Commercial services and supplies 0.9% | |||||
Advanced Disposal Services, Inc. (1 week LIBOR + 2.250%) | 3.715 | 11-10-23 | 2,297,278 | 2,311,107 | |
Clean Harbors, Inc. (1 month LIBOR + 2.000%) | 3.574 | 06-27-24 | 1,179,075 | 1,185,713 | |
Prime Security Services Borrower LLC (1 month LIBOR + 2.750%) | 4.324 | 05-02-22 | 1,773,431 | 1,788,399 | |
TMS International Corp. (I) | TBD | 08-21-24 | 1,000,000 | 1,002,500 | |
Wrangler Buyer Corp. (1 month LIBOR + 3.000%) | 4.574 | 09-27-24 | 2,181,000 | 2,197,052 | |
Electrical equipment 0.3% | |||||
Vertiv Group Corp. (1 month LIBOR + 4.000%) | 5.568 | 11-30-23 | 2,753,992 | 2,781,532 | |
Machinery 2.6% | |||||
Accuride Corp. (3 month LIBOR + 5.250%) | 6.943 | 11-17-23 | 1,298,409 | 1,317,885 | |
Blount International, Inc. (1 month LIBOR + 4.250%) | 5.818 | 04-12-23 | 3,053,040 | 3,100,759 | |
Douglas Dynamics LLC (1 month LIBOR + 3.000%) | 4.700 | 12-31-21 | 1,348,967 | 1,356,561 | |
Filtration Group, Inc. (1 month LIBOR + 3.000%) | 4.574 | 11-21-20 | 3,235,335 | 3,273,091 | |
Gardner Denver, Inc. (3 month LIBOR + 2.750%) | 4.443 | 07-30-24 | 3,050,802 | 3,063,981 | |
Gates Global LLC (3 month LIBOR + 3.000%) | 4.693 | 04-01-24 | 3,097,477 | 3,119,562 | |
Harsco Corp. (1 month LIBOR + 3.000%) | 4.625 | 12-05-24 | 1,129,465 | 1,144,058 | |
Husky Injection Molding Systems, Ltd. (1 month LIBOR + 3.250%) | 4.824 | 06-30-21 | 2,063,133 | 2,072,417 | |
Navistar, Inc. (1 month LIBOR + 3.500%) | 5.060 | 11-01-24 | 3,770,000 | 3,799,858 | |
RBS Global, Inc. (1 month LIBOR + 2.250%) | 3.810 | 08-21-24 | 1,396,756 | 1,407,064 | |
Welbilt, Inc. (1 month LIBOR + 2.750%) | 4.318 | 03-03-23 | 1,082,487 | 1,091,959 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 31 |
Rate (%) | Maturity date | Par value^ | Value | ||
Industrials (continued) | |||||
Trading companies and distributors 0.1% | |||||
Beacon Roofing Supply, Inc. (3 month LIBOR + 2.250%) | 3.818 | 01-02-25 | 1,495,000 | $1,505,943 | |
Information technology 2.9% | 27,500,937 | ||||
Communications equipment 0.2% | |||||
Ciena Corp. (1 month LIBOR + 2.500%) | 4.061 | 01-28-22 | 2,054,043 | 2,059,178 | |
Electronic equipment, instruments and components 0.8% | |||||
CPI International, Inc. (1 month LIBOR + 3.500%) | 5.074 | 07-26-24 | 1,770,563 | 1,781,629 | |
Dell International LLC (1 month LIBOR + 1.750%) | 3.330 | 09-07-21 | 2,192,405 | 2,194,115 | |
Dell International LLC (1 month LIBOR + 2.000%) | 3.580 | 09-07-23 | 2,072,232 | 2,079,672 | |
Robertshaw US Holding Corp. (1 month LIBOR + 4.500%) | 6.125 | 08-10-24 | 1,296,750 | 1,303,778 | |
Internet software and services 0.3% | |||||
MH Sub I LLC (3 month LIBOR + 3.750%) | 5.339 | 09-13-24 | 1,895,250 | 1,903,305 | |
TierPoint LLC (1 month LIBOR + 3.750%) | 5.324 | 05-06-24 | 1,430,558 | 1,437,711 | |
IT services 0.4% | |||||
First Data Corp. (1 month LIBOR + 2.250%) | 3.810 | 07-08-22 | 2,621,342 | 2,638,826 | |
Optiv Security, Inc. (3 month LIBOR + 3.250%) | 4.625 | 02-01-24 | 918,855 | 872,526 | |
Software 0.9% | |||||
Avaya, Inc. (1 month LIBOR + 4.750%) | 6.310 | 12-15-24 | 4,075,000 | 4,093,664 | |
Infor US, Inc. (3 month LIBOR + 2.750%) | 4.443 | 02-01-22 | 1,872,719 | 1,882,082 | |
SS&C European Holdings Sarl (1 month LIBOR + 2.250%) | 3.824 | 07-08-22 | 14,949 | 15,026 | |
SS&C Technologies, Inc. (1 month LIBOR + 2.250%) | 3.824 | 07-08-22 | 962,406 | 967,391 | |
TIBCO Software, Inc. (1 month LIBOR + 3.500%) | 5.070 | 12-04-20 | 1,802,253 | 1,812,400 | |
Technology hardware, storage and peripherals 0.3% | |||||
HCP Acquisition LLC (1 month LIBOR + 3.000%) | 4.574 | 05-16-24 | 731,325 | 735,589 | |
Western Digital Corp. (1 month LIBOR + 2.000%) | 3.561 | 04-29-23 | 1,712,486 | 1,724,045 | |
Materials 2.3% | 22,110,556 | ||||
Chemicals 1.4% | |||||
Alpha 3 BV (3 month LIBOR + 3.000%) | 4.693 | 01-31-24 | 2,034,775 | 2,051,053 | |
Encapsys LLC (1 month LIBOR + 3.250%) | 4.824 | 11-07-24 | 1,174,000 | 1,184,273 | |
Encapsys LLC (1 month LIBOR + 7.500%) | 9.074 | 11-07-25 | 800,000 | 809,000 | |
Ferro Corp. (1 month LIBOR + 2.500%) | 4.074 | 02-14-24 | 2,188,786 | 2,202,466 | |
MacDermid, Inc. (1 month LIBOR + 2.500%) | 4.074 | 06-07-20 | 632,234 | 636,451 |
32 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Materials (continued) | |||||
Chemicals (continued) | |||||
MacDermid, Inc. (1 month LIBOR + 3.000%) | 4.574 | 06-07-23 | 2,357,196 | $2,373,885 | |
OXEA Finance & Cy SCA (3 month LIBOR + 3.500%) | 5.250 | 10-11-24 | 2,528,663 | 2,541,306 | |
Trinseo Materials Operating SCA (1 month LIBOR + 2.500%) | 4.074 | 09-06-24 | 1,419,031 | 1,430,852 | |
Construction materials 0.1% | |||||
Summit Materials LLC (1 month LIBOR + 2.250%) | 3.824 | 11-11-24 | 1,420,000 | 1,432,425 | |
Containers and packaging 0.2% | |||||
ICSH Parent, Inc. (1 month LIBOR + 3.500%) | 5.080 | 04-29-24 | 1,470,444 | 1,481,472 | |
ICSH Parent, Inc. (3 month LIBOR + 3.500%) | 4.857 | 04-29-24 | 21,272 | 21,421 | |
Metals and mining 0.3% | |||||
Signode Industrial Group US, Inc. (1 and 3 month LIBOR + 2.750%) | 4.381 | 05-04-21 | 1,442,086 | 1,442,692 | |
Zekelman Industries, Inc. (3 month LIBOR + 2.750%) | 4.408 | 06-14-21 | 1,452,949 | 1,461,419 | |
Paper and forest products 0.3% | |||||
Flex Acquisition Company, Inc. (3 month LIBOR + 3.000%) | 4.695 | 12-29-23 | 3,021,536 | 3,041,841 | |
Telecommunication services 1.6% | 15,285,427 | ||||
Diversified telecommunication services 1.4% | |||||
Consolidated Communications, Inc. (1 month LIBOR + 3.000%) | 4.570 | 10-04-23 | 1,644,166 | 1,620,013 | |
Frontier Communications Corp. (1 month LIBOR + 3.750%) | 5.330 | 06-15-24 | 1,915,375 | 1,875,478 | |
Level 3 Parent LLC (3 month LIBOR + 2.250%) | 3.696 | 02-22-24 | 1,391,000 | 1,396,800 | |
SFR Group SA (3 month LIBOR + 2.750%) | 4.522 | 07-31-25 | 1,706,038 | 1,635,664 | |
Syniverse Holdings, Inc. (1 month LIBOR + 3.000%) | 4.574 | 04-23-19 | 2,867,275 | 2,854,745 | |
Telesat Canada (3 month LIBOR + 3.000%) | 4.700 | 11-17-23 | 1,234,406 | 1,240,578 | |
West Corp. (1 month LIBOR + 4.000%) | 5.574 | 10-10-24 | 1,596,049 | 1,613,015 | |
Windstream Services LLC (3 month LIBOR + 4.000%) | 5.560 | 03-29-21 | 1,702,367 | 1,605,894 | |
Wireless telecommunication services 0.2% | |||||
Sprint Communications, Inc. (1 month LIBOR + 2.500%) | 4.125 | 02-02-24 | 1,440,244 | 1,443,240 | |
Utilities 1.0% | 9,897,219 | ||||
Electric utilities 0.6% | |||||
Lightstone Generation LLC (1 month LIBOR + 4.500%) | 6.074 | 01-30-24 | 3,149,568 | 3,162,954 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 33 |
Rate (%) | Maturity date | Par value^ | Value | ||
Utilities (continued) | |||||
Electric utilities (continued) | |||||
Vistra Operations Company LLC (1 month LIBOR + 2.750%) | 4.311 | 12-14-23 | 2,539,350 | $2,553,647 | |
Independent power and renewable electricity producers 0.4% | |||||
Calpine Corp. (3 month LIBOR + 2.500%) | 4.200 | 01-15-24 | 1,466,298 | 1,473,131 | |
Dynegy, Inc. (1 month LIBOR + 2.750%) | 4.311 | 02-07-24 | 2,681,875 | 2,707,487 | |
Collateralized mortgage obligations 11.5% | $110,214,051 | ||||
(Cost $106,445,452) | |||||
Commercial and residential 11.3% | 108,169,792 | ||||
280 Park Avenue Mortgage Trust Series 2015-280P, Class A (1 month LIBOR + 0.880%) (A)(B) | 2.434 | 09-15-34 | 2,500,000 | 2,504,678 | |
Bayview Opportunity Master Fund Trust Series 2017-CRT1, Class M (1 month LIBOR + 2.150%) (A)(B) | 3.717 | 10-25-28 | 4,858,258 | 4,865,003 | |
BCAP LLC Trust Series 2011-RR11, Class 21A5 (B)(J) | 3.829 | 06-26-34 | 258,324 | 259,300 | |
BHMS Mortgage Trust | |||||
Series 2014-ATLS, Class AFL (1 month LIBOR + 1.500%) (A)(B) | 3.068 | 07-05-33 | 5,425,000 | 5,445,091 | |
Series 2014-ATLS, Class BFL (1 month LIBOR + 1.950%) (A)(B) | 3.518 | 07-05-33 | 1,500,000 | 1,505,224 | |
BX Trust Series 2017-SLCT, Class A (1 month LIBOR + 0.920%) (A)(B) | 2.479 | 07-15-34 | 1,800,000 | 1,805,607 | |
CG-CCRE Commercial Mortgage Trust Series 2014-FL2, Class A (1 month LIBOR + 1.854%) (A)(B) | 3.413 | 11-15-31 | 2,830,995 | 2,831,656 | |
CGDB Commercial Mortgage Trust Series 2017-BIO, Class A (1 month LIBOR + 0.750%) (A)(B) | 2.309 | 05-15-30 | 500,000 | 500,470 | |
CGMS Commercial Mortgage Trust Series 2017-MDRB, Class A (1 month LIBOR + 1.100%) (A)(B) | 2.659 | 07-15-30 | 5,500,000 | 5,486,238 | |
CHT Mortgage Trust Series 2017-CSMO, Class A (1 month LIBOR + 0.930%) (A)(B) | 2.489 | 11-15-36 | 4,900,000 | 4,912,283 | |
Citigroup Commercial Mortgage Trust (Citigroup) Series 2015-SSHP, Class B (1 month LIBOR + 1.650%) (A)(B) | 3.209 | 09-15-27 | 2,800,000 | 2,795,638 | |
Citigroup Commercial Mortgage Trust (Citigroup/Academy Securities, Inc./JPMorgan Securities LLC) Series 2016-SMPL, Class A (B) | 2.228 | 09-10-31 | 5,050,000 | 4,906,205 | |
Citigroup Commercial Mortgage Trust (Citigroup/Drexel Hamilton) Series 2018-TBR, Class A (1 month LIBOR + 0.830%) (A)(B) | 2.380 | 12-15-19 | 3,575,000 | 3,575,000 |
34 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Citigroup Mortgage Loan Trust Series 2013-2, Class 5A1 (1 month LIBOR + 0.140%) (A)(B) | 1.692 | 07-25-36 | 2,510,625 | $2,421,900 | |
COLT Mortgage Loan Trust Series 2018-1, Class A1 (B)(J) | 2.930 | 02-25-48 | 2,175,000 | 2,174,788 | |
Commercial Mortgage Trust (Bank of America/Barclays Capital/Deutsche Bank AG) Series 2006-C8, Class AJ | 5.377 | 12-10-46 | 386,104 | 388,517 | |
Countrywide Home Loan Mortgage Pass Through Trust | |||||
Series 2006-3, Class 3A1 (1 month LIBOR + 0.250%) (A) | 1.811 | 02-25-36 | 1,034,330 | 984,873 | |
Series 2004-25, Class 2A1 (1 month LIBOR + 0.680%) (A) | 2.241 | 02-25-35 | 2,744,251 | 2,653,594 | |
Deephaven Residential Mortgage Trust Series 2018-1A, Class A1 (B)(J) | 2.976 | 01-25-58 | 3,400,000 | 3,399,969 | |
GAHR Commercial Mortgage Trust Series 2015-NRF, Class AFL1 (1 month LIBOR + 1.300%) (A)(B) | 2.778 | 12-15-34 | 237,412 | 237,561 | |
HarborView Mortgage Loan Trust Series 2007-3, Class 2A1A (1 month LIBOR + 0.200%) (A) | 1.758 | 05-19-47 | 2,440,242 | 2,297,274 | |
Hudsons Bay Simon JV Trust Series 2015-HBFL, Class AFL (1 month LIBOR + 1.580%) (A)(B) | 3.137 | 08-05-34 | 6,250,000 | 6,263,530 | |
IndyMac INDA Mortgage Loan Trust Series 2005-AR2, Class 1A1 (J) | 3.196 | 01-25-36 | 678,999 | 628,151 | |
JPMorgan Chase Commercial Mortgage Securities Trust | |||||
Series 2006-CB14, Class AJ (J) | 5.552 | 12-12-44 | 125,668 | 124,411 | |
Series 2006-LDP9, Class AMS | 5.337 | 05-15-47 | 4,635,000 | 4,636,251 | |
Series 2007-LDPX, Class AM (J) | 5.464 | 01-15-49 | 1,624,361 | 1,629,405 | |
Series 2017-MAUI, Class A (1 month LIBOR + 0.830%) (A)(B) | 2.382 | 07-15-34 | 1,150,000 | 1,152,503 | |
LSTAR Securities Investment, Ltd. Series 2017-9, Class A (1 month LIBOR + 1.550%) (A)(B) | 0.031 | 12-01-22 | 2,973,512 | 2,973,512 | |
RBS Commercial Funding, Inc. Trust Series 2013-GSP, Class A (B)(J) | 3.834 | 01-13-32 | 4,250,000 | 4,319,216 | |
RBSSP Resecuritization Trust | |||||
Series 2012-6, Class 10A1 (1 month LIBOR + 0.230%) (A)(B) | 1.702 | 08-26-36 | 2,067,800 | 2,052,878 | |
Series 2012-6, Class 4A1 (1 month LIBOR + 0.330%) (A)(B) | 1.882 | 01-26-36 | 2,118,256 | 2,070,171 | |
Series 2012-6, Class 6A1 (1 month LIBOR + 0.340%) (A)(B) | 1.892 | 11-26-35 | 4,517,731 | 4,500,216 | |
Series 2012-6, Class 8A1 (1 month LIBOR + 0.500%) (A)(B) | 2.052 | 04-26-35 | 1,499,508 | 1,486,144 | |
TRU Trust Series 2016-TOYS, Class A (1 month LIBOR + 2.250%) (A)(B) | 3.809 | 11-15-30 | 3,736,199 | 3,718,592 | |
Waldorf Astoria Boca Raton Trust Series 2016-BOCA, Class A (1 month LIBOR + 1.350%) (A)(B) | 2.909 | 06-15-29 | 2,700,000 | 2,707,582 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 35 |
Rate (%) | Maturity date | Par value^ | Value | ||
WaMu Mortgage Pass Through Certificates Series 2005-AR6, Class 2A1A (1 month LIBOR + 0.460%) (A) | 2.021 | 04-25-45 | 2,183,982 | $2,145,130 | |
WaMu Mortgage Pass-Through Certificates | |||||
Series 2005-11, Class A1 (1 month LIBOR + 0.320%) (A) | 1.881 | 08-25-45 | 2,440,481 | 2,443,468 | |
Series 2005-AR1, Class A1A (1 month LIBOR + 0.640%) (A) | 2.201 | 01-25-45 | 919,487 | 912,769 | |
Series 2005-AR19, Class A1A1 (1 month LIBOR + 0.270%) (A) | 1.831 | 12-25-45 | 2,377,460 | 2,302,166 | |
Series 2005-AR8, Class 1A (1 month LIBOR + 0.270%) (A) | 1.831 | 07-25-45 | 1,963,089 | 1,947,337 | |
Wells Fargo Mortgage Backed Securities Trust Series 2005-AR4, Class 2A2 (J) | 3.479 | 04-25-35 | 933,720 | 937,962 | |
WFCG Commercial Mortgage Trust | |||||
Series 2015-BXRP, Class A (1 month LIBOR + 1.122%) (A)(B) | 2.681 | 11-15-29 | 1,657,369 | 1,658,409 | |
Series 2015-BXRP, Class B (1 month LIBOR + 1.472%) (A)(B) | 3.031 | 11-15-29 | 1,606,854 | 1,609,120 | |
U.S. Government Agency 0.2% | 2,044,259 | ||||
Federal Home Loan Mortgage Corp. | |||||
Series 2015-SC02, Class 1A | 3.000 | 09-25-45 | 302,097 | 291,054 | |
Series 4013, Class DK | 3.000 | 02-15-31 | 1,317,463 | 1,355,621 | |
Government National Mortgage Association Series 2014-80, Class XA | 3.000 | 06-20-40 | 394,274 | 397,584 | |
Asset backed securities 8.3% | $80,207,643 | ||||
(Cost $80,195,190) | |||||
Bayview Opportunity Master Fund Trust Series 2017-NPL1, Class A1 (B) | 3.598 | 01-28-32 | 1,190,757 | 1,190,859 | |
Chesapeake Funding II LLC Series 2016-1A, Class A2 (1 month LIBOR + 1.150%) (A)(B) | 2.709 | 03-15-28 | 1,579,513 | 1,585,866 | |
Colony American Homes Series 2014-2A, Class A (1 month LIBOR + 0.950%) (A)(B) | 2.509 | 07-17-31 | 2,394,566 | 2,398,532 | |
Financial Asset Securities Corp. AAA Trust Series 2005-2, Class A3 (1 month LIBOR + 0.300%) (A)(B) | 1.864 | 11-26-35 | 3,186,167 | 3,077,483 | |
GCAT LLC Series 2017-5, Class A1 (B) | 3.228 | 07-25-47 | 980,993 | 979,151 | |
GSAMP Trust Series 2006-NC1, Class A2 (1 month LIBOR + 0.180%) (A) | 1.741 | 02-25-36 | 3,057 | 3,056 | |
Hertz Vehicle Financing II LP Series 2015-2A, Class A (B) | 2.020 | 09-25-19 | 850,000 | 847,863 | |
Invitation Homes Trust | |||||
Series 2015-SFR3, Class A (1 month LIBOR + 1.300%) (A)(B) | 2.859 | 08-17-32 | 3,787,961 | 3,803,229 | |
Series 2018-SFR1, Class A (1 month LIBOR + 0.700%) (A)(B) | 2.461 | 03-17-37 | 3,000,000 | 3,005,695 |
36 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Long Beach Mortgage Loan Trust Series 2005-WL2, Class M1 (1 month LIBOR + 0.705%) (A) | 2.266 | 08-25-35 | 293,367 | $295,601 | |
Mill City Mortgage Loan Trust | |||||
Series 2016-1, Class A1 (B)(J) | 2.500 | 04-25-57 | 1,744,120 | 1,723,535 | |
Series 2017-1, Class A1 (B)(J) | 2.750 | 11-25-58 | 3,073,249 | 3,053,629 | |
New Residential Advance Receivables Trust Series 2017-T1, Class AT1 (B) | 3.214 | 02-15-51 | 4,625,000 | 4,596,791 | |
Pretium Mortgage Credit Partners I LLC | |||||
Series 2017-NPL2, Class A1 (B) | 3.250 | 03-28-57 | 3,110,630 | 3,105,121 | |
Series 2017-NPL5, Class A1 (B)(J) | 3.327 | 12-30-32 | 6,246,935 | 6,211,705 | |
Progress Residential Trust Series 2016-SFR1, Class A (1 month LIBOR + 1.500%) (A)(B) | 3.059 | 09-17-33 | 2,725,343 | 2,755,732 | |
RAAC Series Trust Series 2006-SP2, Class A3 (1 month LIBOR + 0.270%) (A) | 1.831 | 02-25-36 | 148,375 | 148,356 | |
SLC Student Loan Trust Series 2004-1, Class A6 (3 month LIBOR + 0.160%) (A) | 1.576 | 05-15-23 | 3,719,078 | 3,719,083 | |
SoFi Professional Loan Program LLC | |||||
Series 2015-C, Class A1 (1 month LIBOR + 1.050%) (A)(B) | 2.611 | 08-27-35 | 1,661,521 | 1,679,802 | |
Series 2016-C, Class A1 (1 month LIBOR + 1.100%) (A)(B) | 2.661 | 10-27-36 | 1,835,810 | 1,868,954 | |
Series 2016-D, Class A1 (1 month LIBOR + 0.950%) (A)(B) | 2.511 | 01-25-39 | 1,217,838 | 1,229,729 | |
Springleaf Funding Trust Series 2016-AA, Class A (B) | 2.900 | 11-15-29 | 3,900,000 | 3,909,567 | |
TAL Advantage V LLC Series 2013-2A, Class A (B) | 3.550 | 11-20-38 | 2,187,500 | 2,164,469 | |
Towd Point Mortgage Trust Series 2016-2, Class A1A (B)(J) | 2.750 | 08-25-55 | 1,609,737 | 1,593,305 | |
Trafigura Securitisation Finance PLC Series 2017-1A, Class A1 (1 month LIBOR + 0.850%) (A)(B) | 2.409 | 12-15-20 | 3,550,000 | 3,570,732 | |
U.S. Residential Opportunity Fund IV Trust Series 2017-1III, Class A (B) | 3.352 | 11-27-37 | 2,950,931 | 2,934,684 | |
VOLT LIV LLC Series 2017-NPL1, Class A1 (B) | 3.500 | 02-25-47 | 1,277,619 | 1,275,394 | |
VOLT LVIII LLC Series 2017-NPL5, Class A1 (B) | 3.375 | 05-28-47 | 852,843 | 853,243 | |
VOLT LX LLC Series 2017-NPL7, Class A1 (B) | 3.250 | 06-25-47 | 1,869,604 | 1,867,964 | |
VOLT LXI LLC Series 2017-NPL8, Class A1 (B) | 3.125 | 06-25-47 | 2,326,915 | 2,322,701 | |
VOLT LXII LLC Series 2017-NPL9, Class A1 (B) | 3.125 | 09-25-47 | 1,901,343 | 1,896,730 | |
VOLT LXIII LLC Series 2017-NP10, Class A1 (B) | 3.000 | 10-25-47 | 3,300,000 | 3,284,522 | |
VOLT LXIV LLC Series 2017-NP11, Class A1 (B) | 3.375 | 10-25-47 | 5,260,836 | 5,252,883 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 37 |
Rate (%) | Maturity date | Par value^ | Value | ||
VOLT XXV LLC Series 2015-NPL8, Class A1 (B) | 3.500 | 06-26-45 | 1,999,657 | $2,001,677 | |
Shares | Value | ||||
Common stocks 0.4% | $3,658,982 | ||||
(Cost $6,755,757) | |||||
Consumer discretionary 0.0% | 131,244 | ||||
Textiles, apparel and luxury goods 0.0% | |||||
Quiksilver, Inc. (C)(K) | 5,944 | 131,244 | |||
Energy 0.0% | 278,200 | ||||
Energy equipment and services 0.0% | |||||
Paragon Offshore PLC (C) | 2,695 | 55,248 | |||
Paragon Offshore PLC, Litigation Trust A (C) | 2,695 | 3,010 | |||
Paragon Offshore PLC, Litigation Trust B (C) | 1,348 | 44,906 | |||
Southcross Holdings Borrower LP (C) | 246 | 86,100 | |||
Oil, gas and consumable fuels 0.0% | |||||
Denbury Resources, Inc. (C) | 36,575 | 88,877 | |||
Gener8 Maritime, Inc. (C) | 10 | 59 | |||
Information technology 0.2% | 1,242,715 | ||||
Software 0.2% | |||||
Avaya Holdings Corp. (C) | 59,517 | 1,242,715 | |||
Utilities 0.2% | 2,006,823 | ||||
Independent power and renewable electricity producers 0.2% | |||||
Vistra Energy Corp. (C) | 102,914 | 2,006,823 | |||
Rights 0.0% | $135,311 | ||||
(Cost $738,662) | |||||
Texas Competitive Electric Holdings Company LLC (C)(L) | 180,414 | 135,311 | |||
Warrants 0.0% | $5,507 | ||||
(Cost $0) | |||||
Halcon Resources Corp. (Expiration Date: 9-9-20) (C)(L) | 6,682 | 5,346 | |||
Midstates Petroleum Company, Inc. (Expiration Date: 4-21-20; Strike Price $24.00) (C) | 2,144 | 161 |
Rate (%) | Maturity date | Par value^ | Value | ||
Escrow certificates 0.0% | $582 | ||||
(Cost $4,430) | |||||
Midstates Petroleum Company, Inc. (C)(K) | 10.750 | 10-01-20 | 650,000 | 582 | |
Texas Competitive Electric Holdings Company LLC (C)(K) | 11.500 | 10-01-20 | 10,820,544 | 0 |
38 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Yield (%) | Shares | Value | |||
Securities lending collateral 0.8% | $7,457,097 | ||||
(Cost $7,456,793) | |||||
John Hancock Collateral Trust (M) | 1.4720(N) | 745,330 | 7,457,097 | ||
Yield*(%) | Maturity date | Par value^ | Value | ||
Short-term investments 7.9% | $75,870,662 | ||||
(Cost $75,834,504) | |||||
Foreign government 0.2% | 1,970,314 | ||||
Egypt Treasury Bill | 15.113 | 06-19-18 | EGP | 7,500,000 | 399,557 |
Egypt Treasury Bill | 17.760 | 03-06-18 | EGP | 6,125,000 | 341,183 |
Federative Republic of Brazil | 6.417 | 01-01-19 | BRL | 525,000 | 155,274 |
Federative Republic of Brazil | 7.449 | 07-01-20 | BRL | 1,370,000 | 353,638 |
Mexico Cetes | 7.045 | 06-21-18 | MXN | 13,800,000 | 720,662 |
Yield (%) | Shares | Value | |||
Money market funds 7.7% | 73,900,348 | ||||
State Street Institutional Treasury Plus Money Market Fund, Premier Class | 1.2238(N) | 73,900,348 | 73,900,348 |
Total investments (Cost $961,076,482) 100.8% | $968,555,465 | ||||
Other assets and liabilities, net (0.8%) | (7,875,597) | ||||
Total net assets 100.0% | $960,679,868 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
BRL | Brazilian Real |
CLP | Chilean Peso |
COP | Colombian Peso |
EGP | Egyptian Pound |
EUR | Euro |
IDR | Indonesian Rupiah |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
PEN | Peruvian Nuevo Sol |
PLN | Polish Zloty |
RON | Romanian New Leu |
RUB | Russian Ruble |
THB | Thai Bhat |
TRY | Turkish Lira |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Security Abbreviations and Legend | |
CMT | Constant Maturity Treasury |
ISDAFIX | International Swaps and Derivatives Association Fixed Interest Rate Swap Rate |
LIBOR | London Interbank Offered Rate |
PIK | Pay-in-Kind Security - Represents a payment-in-kind which may pay interest in additional par and/or cash. Rates shown are the current rate and most recent payment rate. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 39 |
(A) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
(B) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $282,395,240 or 29.4% of the fund's net assets as of 1-31-18. |
(C) | Non-income producing security. |
(D) | Non-income producing - Issuer is in default. |
(E) | A portion of this security is on loan as of 1-31-18. |
(F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(G) | Security purchased or sold on a when-issued or delayed delivery basis. |
(H) | Term loans are variable rate obligations. The coupon rate shown represents the rate at period end. |
(I) | This position represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate, which is disclosed as TBD (To Be Determined). |
(J) | Variable or floating rate security, the interest rate of which adjusts periodically based on a weighted average of interest rates and prepayments on the underlying pool of assets. The interest rate shown is the current rate as of period end. |
(K) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(L) | Strike price and/or expiration date not available. |
(M) | Investment is an affiliate of the fund, the advisor and/or subadvisor. This security represents the investment of cash collateral received for securities lending. |
(N) | The rate shown is the annualized seven-day yield as of 1-31-18. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
40 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Open contracts | Number of contracts | Position | Expiration date | Notional basis* | Notional value* | Unrealized appreciation (depreciation) |
2-Year U.S. Treasury Note Futures | 170 | Long | Mar 2018 | $36,481,580 | $36,249,844 | $(231,736) |
10-Year U.S. Treasury Note Futures | 380 | Short | Mar 2018 | (47,339,688) | (46,199,688) | 1,140,000 |
5-Year U.S. Treasury Note Futures | 91 | Short | Mar 2018 | (10,620,351) | (10,438,695) | 181,656 |
Ultra U.S. Treasury Bond Futures | 387 | Short | Mar 2018 | (64,373,568) | (62,669,812) | 1,703,756 |
$2,793,676 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
ARS | 12,303,989 | USD | 632,921 | JPMorgan Chase Bank N.A. | 2/16/2018 | — | $(10,722) |
ARS | 7,083,475 | USD | 350,000 | JPMorgan Chase Bank N.A. | 4/25/2018 | — | (3,623) |
BRL | 4,941,063 | USD | 1,563,977 | Citibank N.A. | 2/2/2018 | — | (13,112) |
BRL | 14,610,739 | USD | 4,599,186 | Goldman Sachs International | 2/2/2018 | — | (13,266) |
BRL | 1,681,132 | USD | 531,600 | JPMorgan Chase Bank N.A. | 2/2/2018 | — | (3,938) |
BRL | 992,938 | USD | 311,149 | Citibank N.A. | 3/2/2018 | — | (443) |
CLP | 979,430,220 | USD | 1,614,920 | Goldman Sachs International | 2/12/2018 | $9,512 | — |
COP | 3,122,548,000 | USD | 1,100,000 | JPMorgan Chase Bank N.A. | 2/23/2018 | — | (1,032) |
CZK | 26,578,206 | USD | 1,233,156 | Citibank N.A. | 2/15/2018 | 73,228 | — |
CZK | 31,996,638 | USD | 1,485,800 | Goldman Sachs International | 2/15/2018 | 86,913 | — |
CZK | 22,021,675 | USD | 1,021,887 | JPMorgan Chase Bank N.A. | 2/15/2018 | 60,532 | — |
EUR | 7,286,004 | USD | 9,055,869 | JPMorgan Chase Bank N.A. | 2/9/2018 | — | (5,925) |
EUR | 15,850,000 | USD | 19,480,205 | JPMorgan Chase Bank N.A. | 2/16/2018 | 215,733 | — |
INR | 45,429,350 | USD | 710,000 | Goldman Sachs International | 2/26/2018 | 1,969 | — |
MXN | 361,900,000 | USD | 19,362,053 | Citibank N.A. | 2/26/2018 | 6,402 | — |
PEN | 535,916 | USD | 166,382 | JPMorgan Chase Bank N.A. | 2/22/2018 | 112 | — |
PLN | 1,403,000 | USD | 416,213 | Citibank N.A. | 2/8/2018 | 3,189 | — |
RON | 3,425,500 | USD | 889,602 | Citibank N.A. | 2/9/2018 | 25,454 | — |
RON | 660,000 | USD | 172,911 | Goldman Sachs International | 2/9/2018 | 3,395 | — |
THB | 43,667,568 | USD | 1,364,000 | Citibank N.A. | 2/16/2018 | 30,662 | — |
TRY | 497,799 | USD | 131,363 | Citibank N.A. | 2/13/2018 | 676 | — |
TRY | 208,284 | USD | 55,015 | JPMorgan Chase Bank N.A. | 2/13/2018 | 231 | — |
USD | 522,000 | ARS | 10,313,782 | JPMorgan Chase Bank N.A. | 2/16/2018 | 444 | — |
USD | 9,505,562 | AUD | 11,930,000 | JPMorgan Chase Bank N.A. | 2/26/2018 | — | (106,574) |
USD | 673,982 | BRL | 2,129,998 | Citibank N.A. | 2/2/2018 | 5,433 | — |
USD | 1,506,651 | BRL | 4,806,193 | Goldman Sachs International | 2/2/2018 | — | (1,884) |
USD | 511,252 | BRL | 1,681,132 | JPMorgan Chase Bank N.A. | 2/2/2018 | — | (16,411) |
USD | 314,619 | BRL | 992,938 | Citibank N.A. | 3/2/2018 | 3,913 | — |
USD | 107,000 | CLP | 65,019,620 | Goldman Sachs International | 2/12/2018 | — | (838) |
USD | 374,026 | COP | 1,078,000,000 | Citibank N.A. | 2/23/2018 | — | (5,371) |
USD | 361,972 | COP | 1,042,480,194 | Goldman Sachs International | 2/23/2018 | — | (4,924) |
USD | 1,119,689 | COP | 3,230,582,198 | JPMorgan Chase Bank N.A. | 2/23/2018 | — | (17,302) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 41 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
USD | 399,000 | CZK | 8,185,619 | Citibank N.A. | 2/15/2018 | — | $(3,343) |
USD | 40,000 | CZK | 827,677 | Goldman Sachs International | 2/15/2018 | — | (682) |
USD | 973,000 | CZK | 19,728,395 | JPMorgan Chase Bank N.A. | 2/15/2018 | $3,301 | — |
USD | 8,802,604 | EUR | 7,286,004 | JPMorgan Chase Bank N.A. | 2/9/2018 | — | (247,340) |
USD | 19,263,630 | EUR | 15,850,000 | JPMorgan Chase Bank N.A. | 2/16/2018 | — | (432,304) |
USD | 8,005,883 | EUR | 6,415,700 | JPMorgan Chase Bank N.A. | 3/9/2018 | 22,471 | — |
USD | 9,622,420 | GBP | 7,060,000 | JPMorgan Chase Bank N.A. | 2/16/2018 | — | (406,941) |
USD | 338,285 | IDR | 4,519,144,800 | Citibank N.A. | 2/28/2018 | 1,365 | — |
USD | 795,884 | IDR | 10,623,065,000 | Goldman Sachs International | 2/28/2018 | 3,893 | — |
USD | 559,474 | IDR | 7,475,138,000 | JPMorgan Chase Bank N.A. | 2/28/2018 | 2,174 | — |
USD | 223,000 | INR | 14,191,274 | Goldman Sachs International | 2/26/2018 | 594 | — |
USD | 9,586,759 | JPY | 1,042,840,000 | JPMorgan Chase Bank N.A. | 2/28/2018 | 21,078 | — |
USD | 19,236,100 | MXN | 361,900,000 | Citibank N.A. | 2/26/2018 | — | (132,355) |
USD | 1,390,838 | MXN | 25,889,747 | Citibank N.A. | 2/28/2018 | 5,703 | — |
USD | 210,205 | MXN | 3,916,916 | Goldman Sachs International | 2/28/2018 | 645 | — |
USD | 267,000 | MXN | 4,975,919 | JPMorgan Chase Bank N.A. | 2/28/2018 | 782 | — |
USD | 50,000 | PEN | 160,900 | Citibank N.A. | 2/22/2018 | 13 | — |
USD | 506,341 | PEN | 1,641,000 | JPMorgan Chase Bank N.A. | 2/22/2018 | — | (3,470) |
USD | 174,469 | PLN | 600,000 | Citibank N.A. | 2/8/2018 | — | (4,890) |
USD | 440,000 | RON | 1,644,764 | Citibank N.A. | 2/9/2018 | 634 | — |
USD | 970,575 | RUB | 54,614,155 | Citibank N.A. | 2/22/2018 | 1,500 | — |
USD | 441,988 | THB | 14,263,328 | Citibank N.A. | 2/16/2018 | — | (13,557) |
USD | 800,509 | ZAR | 9,887,426 | Goldman Sachs International | 2/28/2018 | — | (30,868) |
ZAR | 1,218,888 | USD | 102,000 | Goldman Sachs International | 2/28/2018 | 489 | — |
$592,440 | $(1,481,115) |
Credit default swaps - Buyer | ||||||||||
Counterparty (OTC)/ Centrally cleared | Reference obligation | Notional amount | Currency | USD notional amount | Pay fixed rate | Fixed payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | CDX.EM.28 | 43,165,000 | USD | $ 43,165,000 | 1.000% | Quarterly | Dec 2022 | $ 1,187,519 | $ (956,346) | $ 231,173 |
Centrally cleared | CDX.NA.HY.29 | 83,500,000 | USD | 83,500,000 | 5.000% | Quarterly | Dec 2022 | (5,956,395) | (1,527,062) | (7,483,457) |
Centrally cleared | iTraxx Europe Crossover Series 28 Version 1 | 10,575,000 | EUR | 12,276,512 | 5.000% | Quarterly | Dec 2022 | (1,529,321) | (87,693) | (1,617,014) |
$138,941,512 | $(6,298,197) | $(2,571,101) | $(8,869,298) |
Derivatives Currency Abbreviations | |
ARS | Argentine Peso |
AUD | Australian Dollar |
BRL | Brazilian Real |
CLP | Chilean Peso |
COP | Colombian Peso |
42 | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CZK | Czech Republic Koruna |
EUR | Euro |
GBP | Pound Sterling |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
JPY | Japanese Yen |
MXN | Mexican Peso |
PEN | Peruvian Nuevo Sol |
PLN | Polish Zloty |
RON | Romanian New Leu |
RUB | Russian Ruble |
THB | Thai Bhat |
TRY | Turkish Lira |
USD | U.S. Dollar |
ZAR | South African Rand |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK SHORT DURATION CREDIT OPPORTUNITIES FUND | 43 |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Unaffiliated investments, at value (Cost $953,619,689) including $7,183,242 of securities loaned | $961,098,368 | |||||||||||||||||||||||||||||
Affiliated investments, at value (Cost $7,456,793) | 7,457,097 | |||||||||||||||||||||||||||||
Total investments, at value (Cost $961,076,482) | 968,555,465 | |||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 592,440 | |||||||||||||||||||||||||||||
Receivable for centrally cleared swaps | 3,811,985 | |||||||||||||||||||||||||||||
Foreign currency, at value (Cost $731,951) | 758,046 | |||||||||||||||||||||||||||||
Cash held at broker for futures contracts | 1,655,710 | |||||||||||||||||||||||||||||
Cash segregated at custodian for OTC derivative contracts | 930,000 | |||||||||||||||||||||||||||||
Receivable for investments sold | 7,153,251 | |||||||||||||||||||||||||||||
Receivable for fund shares sold | 3,063,720 | |||||||||||||||||||||||||||||
Dividends and interest receivable | 7,485,706 | |||||||||||||||||||||||||||||
Receivable for securities lending income | 7,113 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 82,896 | |||||||||||||||||||||||||||||
Total assets | 994,096,332 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Payable for futures variation margin | 404,094 | |||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 1,481,115 | |||||||||||||||||||||||||||||
Due to custodian | 1,444,872 | |||||||||||||||||||||||||||||
Payable for investments purchased | 19,477,919 | |||||||||||||||||||||||||||||
Payable for delayed delivery securities purchased | 355,000 | |||||||||||||||||||||||||||||
Payable for fund shares repurchased | 2,635,902 | |||||||||||||||||||||||||||||
Payable upon return of securities loaned | 7,457,964 | |||||||||||||||||||||||||||||
Distributions payable | 612 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 36,542 | |||||||||||||||||||||||||||||
Transfer agent fees | 8,041 | |||||||||||||||||||||||||||||
Trustees' fees | 2,573 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 111,830 | |||||||||||||||||||||||||||||
Total liabilities | 33,416,464 | |||||||||||||||||||||||||||||
Net assets | $960,679,868 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $1,025,817,645 | |||||||||||||||||||||||||||||
Undistributed net investment income | 4,390,547 | |||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments, futures contracts, foreign currency transactions and swap contracts | (76,436,886 | ) | ||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments, futures contracts, translation of assets and liabilities in foreign currencies and swap contracts | 6,908,562 | |||||||||||||||||||||||||||||
Net assets | $960,679,868 |
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 ($46,604,244 ÷ 4,773,163 shares)1 | $9.76 | |||||||||||||||||
Class C ($3,122,510 ÷ 319,833 shares)1 | $9.76 | |||||||||||||||||
Class I ($34,144,447 ÷ 3,501,717 shares) | $9.75 | |||||||||||||||||
Class R2 ($50,309 ÷ 5,155 shares) | $9.76 | |||||||||||||||||
Class R4 ($50,307 ÷ 5,155 shares) | $9.76 | |||||||||||||||||
Class R6 ($5,124,117 ÷ 524,928 shares) | $9.76 | |||||||||||||||||
Class NAV ($871,583,934 ÷ 89,229,433 shares) | $9.77 | |||||||||||||||||
Maximum offering price per share | ||||||||||||||||||
Class A (net asset value per share ÷ 97.5%)2 | $10.01 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Interest | $23,452,907 | |||||||||||||||||||||||
Securities lending | 32,895 | |||||||||||||||||||||||
Less foreign taxes withheld | (15,340 | ) | ||||||||||||||||||||||
Total investment income | 23,470,462 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 3,683,954 | |||||||||||||||||||||||
Distribution and service fees | 79,621 | |||||||||||||||||||||||
Accounting and legal services fees | 80,018 | |||||||||||||||||||||||
Transfer agent fees | 42,578 | |||||||||||||||||||||||
Trustees' fees | 8,949 | |||||||||||||||||||||||
State registration fees | 61,955 | |||||||||||||||||||||||
Printing and postage | 12,396 | |||||||||||||||||||||||
Professional fees | 59,840 | |||||||||||||||||||||||
Custodian fees | 84,426 | |||||||||||||||||||||||
Other | 18,264 | |||||||||||||||||||||||
Total expenses | 4,132,001 | |||||||||||||||||||||||
Less expense reductions | (44,276 | ) | ||||||||||||||||||||||
Net expenses | 4,087,725 | |||||||||||||||||||||||
Net investment income | 19,382,737 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Unaffiliated investments and foreign currency transactions | 6,485,351 | |||||||||||||||||||||||
Affiliated investments | (738 | ) | ||||||||||||||||||||||
Futures contracts | (2,117,121 | ) | ||||||||||||||||||||||
Forward foreign currency contracts | (851,873 | ) | ||||||||||||||||||||||
Swap contracts | (2,444,608 | ) | ||||||||||||||||||||||
1,071,011 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (3,745,920 | ) | ||||||||||||||||||||||
Affiliated investments | 111 | |||||||||||||||||||||||
Futures contracts | 3,691,329 | |||||||||||||||||||||||
Forward foreign currency contracts | 162,325 | |||||||||||||||||||||||
Swap contracts | (576,804 | ) | ||||||||||||||||||||||
(468,959 | ) | |||||||||||||||||||||||
Net realized and unrealized gain | 602,052 | |||||||||||||||||||||||
Increase in net assets from operations | $19,984,789 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | |||||||||||||||||||||||||||||||||||||||||||||
From operations | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income | $19,382,737 | $44,489,840 | |||||||||||||||||||||||||||||||||||||||||||
Net realized gain | 1,071,011 | 10,198,385 | |||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (468,959 | ) | 10,763,783 | ||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 19,984,789 | 65,452,008 | |||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | |||||||||||||||||||||||||||||||||||||||||||||
From net investment income | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (648,571 | ) | (885,271 | ) | |||||||||||||||||||||||||||||||||||||||||
Class C | (40,422 | ) | (67,483 | ) | |||||||||||||||||||||||||||||||||||||||||
Class I | (564,973 | ) | (978,145 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R2 | (1,451 | ) | (3,078 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R4 | (1,496 | ) | (3,176 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R6 | (70,537 | ) | (47,598 | ) | |||||||||||||||||||||||||||||||||||||||||
Class NAV | (17,496,705 | ) | (41,013,833 | ) | |||||||||||||||||||||||||||||||||||||||||
Total distributions | (18,824,155 | ) | (42,998,584 | ) | |||||||||||||||||||||||||||||||||||||||||
From fund share transactions | (271,677,079 | ) | (171,289,028 | ) | |||||||||||||||||||||||||||||||||||||||||
Total decrease | (270,516,445 | ) | (148,835,604 | ) | |||||||||||||||||||||||||||||||||||||||||
Net assets | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 1,231,196,313 | 1,380,031,917 | |||||||||||||||||||||||||||||||||||||||||||
End of period | $960,679,868 | $1,231,196,313 | |||||||||||||||||||||||||||||||||||||||||||
Undistributed net investment income | $4,390,547 | $3,831,965 |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.74 | $9.57 | $9.73 | $10.25 | $10.32 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.16 | 0.29 | 0.29 | 0.31 | 0.30 | 0.36 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.02 | 0.17 | (0.11 | ) | (0.52 | ) | 0.08 | (0.01 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.18 | 0.46 | 0.18 | (0.21 | ) | 0.38 | 0.35 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.16 | ) | (0.29 | ) | (0.34 | ) | (0.31 | ) | (0.32 | ) | (0.33 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | (0.13 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.16 | ) | (0.29 | ) | (0.34 | ) | (0.31 | ) | (0.45 | ) | (0.33 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.76 | $9.74 | $9.57 | $9.73 | $10.25 | $10.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 1.81 | 5 | 4.85 | 1.93 | (2.03 | ) | 3.76 | 3.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $47 | $37 | $27 | $27 | $18 | $2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.17 | 6 | 1.17 | 1.17 | 1.21 | 1.47 | 4.65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.16 | 6 | 1.16 | 1.17 | 1.20 | 1.21 | 1.21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.21 | 6 | 2.99 | 3.10 | 3.10 | 2.93 | 3.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 65 | 77 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class C Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.74 | $9.57 | $9.73 | $10.25 | $10.29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.13 | 0.24 | 0.23 | 0.23 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.01 | 0.15 | (0.12 | ) | (0.52 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.14 | 0.39 | 0.11 | (0.29 | ) | (0.02 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.12 | ) | (0.22 | ) | (0.27 | ) | (0.23 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.12 | ) | (0.22 | ) | (0.27 | ) | (0.23 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.76 | $9.74 | $9.57 | $9.73 | $10.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)5,6 | 1.48 | 7 | 4.15 | 1.23 | (2.82 | ) | (0.18 | ) 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $3 | $3 | $3 | $2 | $1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.87 | 8 | 1.87 | 1.88 | 2.27 | 7.95 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.86 | 8 | 1.86 | 1.87 | 2.00 | 2.00 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 2.63 | 8 | 2.44 | 2.47 | 2.36 | (0.52 | ) 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 65 | 9 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class C shares is 6-27-14. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The portfolio turnover is shown for the period from 8-1-13 to 7-31-14. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.73 | $9.56 | $9.72 | $10.24 | $10.32 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.18 | 0.33 | 0.33 | 0.34 | 0.32 | 0.38 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.01 | 0.16 | (0.12 | ) | (0.51 | ) | 0.08 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.19 | 0.49 | 0.21 | (0.17 | ) | 0.40 | 0.38 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.32 | ) | (0.37 | ) | (0.35 | ) | (0.35 | ) | (0.36 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | (0.13 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.17 | ) | (0.32 | ) | (0.37 | ) | (0.35 | ) | (0.48 | ) | (0.36 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.75 | $9.73 | $9.56 | $9.72 | $10.24 | $10.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 1.99 | 5 | 5.21 | 2.25 | (1.71 | ) | 3.98 | 3.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $34 | $33 | $23 | $26 | $17 | $1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.87 | 6 | 0.86 | 0.86 | 0.88 | 1.46 | 4.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.86 | 6 | 0.85 | 0.85 | 0.87 | 0.90 | 0.90 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.59 | 6 | 3.44 | 3.49 | 3.46 | 3.23 | 3.76 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 65 | 77 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class R2 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.74 | $9.57 | $9.73 | $9.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.17 | 0.31 | 0.32 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.01 | 0.17 | (0.13 | ) | (0.20 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.18 | 0.48 | 0.19 | (0.09 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.16 | ) | (0.31 | ) | (0.35 | ) | (0.11 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.16 | ) | (0.31 | ) | (0.35 | ) | (0.11 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.76 | $9.74 | $9.57 | $9.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 1.91 | 5 | 5.05 | 2.12 | (0.87 | ) 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 6 | — | 6 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.03 | 7 | 1.02 | 1.02 | 1.01 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.02 | 7 | 1.01 | 1.01 | 1.00 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.49 | 7 | 3.23 | 3.34 | 3.09 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for R2 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class R4 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.74 | $9.57 | $9.73 | $9.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.17 | 0.32 | 0.33 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.02 | 0.17 | (0.13 | ) | (0.19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.19 | 0.49 | 0.20 | (0.08 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.32 | ) | (0.36 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.17 | ) | (0.32 | ) | (0.36 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.76 | $9.74 | $9.57 | $9.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 1.97 | 5 | 5.15 | 2.22 | (0.84 | ) 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 6 | — | 6 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.03 | 7 | 1.02 | 1.02 | 1.01 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.92 | 7 | 0.91 | 0.91 | 0.90 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.59 | 7 | 3.33 | 3.44 | 3.19 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R4 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class R6 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.74 | $9.57 | $9.73 | $9.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.19 | 0.34 | 0.34 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.01 | 0.16 | (0.12 | ) | (0.19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.20 | 0.50 | 0.22 | (0.08 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.18 | ) | (0.33 | ) | (0.38 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.18 | ) | (0.33 | ) | (0.38 | ) | (0.12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.76 | $9.74 | $9.57 | $9.73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 2.05 | 5 | 5.33 | 2.40 | (0.78 | ) 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $5 | $2 | $1 | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.78 | 7 | 0.77 | 0.77 | 0.74 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.76 | 7 | 0.74 | 0.74 | 0.73 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.78 | 7 | 3.56 | 3.61 | 3.31 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for R6 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class NAV Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.75 | $9.57 | $9.74 | $10.25 | $10.32 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.18 | 0.34 | 0.34 | 0.36 | 0.37 | 0.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.02 | 0.17 | (0.13 | ) | (0.51 | ) | 0.06 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.20 | 0.51 | 0.21 | (0.15 | ) | 0.43 | 0.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.18 | ) | (0.33 | ) | (0.38 | ) | (0.36 | ) | (0.37 | ) | (0.38 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | (0.13 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.18 | ) | (0.33 | ) | (0.38 | ) | (0.36 | ) | (0.50 | ) | (0.38 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.77 | $9.75 | $9.57 | $9.74 | $10.25 | $10.32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 2.05 | 5 | 5.43 | 2.27 | (1.46 | ) | 4.26 | 3.88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $872 | $1,156 | $1,326 | $1,402 | $1,469 | $1,155 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.76 | 6 | 0.75 | 0.75 | 0.74 | 0.75 | 0.75 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.76 | 6 | 0.74 | 0.74 | 0.73 | 0.75 | 0.74 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 3.72 | 6 | 3.55 | 3.61 | 3.63 | 3.59 | 3.79 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 33 | 77 | 52 | 61 | 65 | 77 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Note 1 — Organization
John Hancock Short Duration Credit Opportunities Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek to maximize total return, which consists of income on its investments and capital appreciation.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of Assets and Liabilities. Class A and Class C are open to all investors. Class I shares are offered to institutions and certain investors. Class R2 and Class R4 shares are available only to certain retirement plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund.
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices. Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds, including John Hancock Collateral Trust (JHCT), are valued at their respective NAVs each business day. Options listed on an exchange are valued at the mean of the most recent bid and ask prices from the exchange where the option trades. Swaps and unlisted options are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are valued at settlement prices, which are the official closing prices published by the exchange on which they trade. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined
and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of January 31, 2018, by major security category or type:
Total value at 1-31-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||
Investments in securities: | ||||||||||||||
Assets | ||||||||||||||
U.S. Government and Agency obligations | $7,196,038 | — | $7,196,038 | — | ||||||||||
Foreign government obligations | 117,821,489 | — | 117,821,489 | — | ||||||||||
Corporate bonds | 342,513,352 | — | 342,513,352 | — | ||||||||||
Term loans | 223,474,751 | — | 223,474,751 | — | ||||||||||
Collateralized mortgage obligations | 110,214,051 | — | 110,214,051 | — | ||||||||||
Asset backed securities | 80,207,643 | — | 80,207,643 | — | ||||||||||
Common stocks | 3,658,982 | $3,338,474 | 189,264 | $131,244 | ||||||||||
Rights | 135,311 | — | 135,311 | — | ||||||||||
Warrants | 5,507 | 5,346 | 161 | — | ||||||||||
Escrow certificates | 582 | — | — | 582 | ||||||||||
Securities lending collateral | 7,457,097 | 7,457,097 | — | — | ||||||||||
Short-term investments | 75,870,662 | 73,900,348 | 1,970,314 | — | ||||||||||
Total investments in securities | $968,555,465 | $84,701,265 | $883,722,374 | $131,826 | ||||||||||
Derivatives: | ||||||||||||||
Assets | ||||||||||||||
Futures | $3,025,412 | $3,025,412 | — | — | ||||||||||
Forward foreign currency contracts | 592,440 | — | $592,440 | — | ||||||||||
Swap contracts | 231,173 | — | 231,173 | — | ||||||||||
Liabilities | ||||||||||||||
Futures | $(231,736 | ) | $(231,736 | ) | — | — | ||||||||
Forward foreign currency contracts | (1,481,115 | ) | — | $(1,481,115 | ) | — | ||||||||
Swap contracts | (9,100,471 | ) | — | (9,100,471 | ) | — |
Term loans (Floating rate loans). The fund may invest in term loans, which are debt securities and are often rated below investment grade at the time of purchase. Term loans are generally subject to legal or contractual restrictions on resale and generally have longer settlement periods than conventional debt securities. Term loans involve special types of risk, including
credit risk, interest-rate risk, counterparty risk and risk associated with extended settlement. The liquidity of term loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual loans. During periods of infrequent trading, valuing a term loan can be more difficult and buying and selling a term loan at an acceptable price can be more difficult and delayed, which could result in a loss.
The fund's ability to receive payments of principal, interest and other amounts in connection with term loans will depend primarily on the financial condition of the borrower. The fund's failure to receive scheduled payments on a term loan due to a default, bankruptcy or other reason would adversely affect the fund's income and would likely reduce the value of its assets. Transactions in loan investments typically take a significant amount of time (i.e., seven days or longer) to settle. This could pose a liquidity risk to the fund and, if the fund's exposure to such investments is substantial, could impair the fund's ability to meet redemptions. Because term loans may not be rated by independent credit rating agencies, a decision to invest in a particular loan could depend exclusively on the subadvisor's credit analysis of the borrower and/or term loan agents. There is greater risk that the fund may have limited rights to enforce the terms of an underlying loan than for other types of debt instruments.
At January 31, 2018, the fund had $155,769 in unfunded loan commitments outstanding.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Securities lending. The fund may lend its securities to earn additional income. The fund receives cash collateral from the borrower in an amount not less than the market value of the loaned securities. The fund will invest its collateral in JHCT, an affiliate of the fund, which has a floating NAV and is registered with the Securities and Exchange Commission as an investment company. JHCT invests in short-term money market investments. The fund will receive the benefit of any gains and bear any losses generated by JHCT with respect to the cash collateral.
The fund has the right to recall loaned securities on demand. If a borrower fails to return loaned securities when due, then the lending agent is responsible and indemnifies the fund for the lent securities. The lending agent uses the collateral received from the borrower to purchase replacement securities of the same issue, type, class and series of the loaned securities. If the value of the collateral is less than the purchase cost of replacement securities, the lending agent is responsible for satisfying the shortfall but only to the extent that the shortfall is not due to any decrease in the value of JHCT.
Although the risk of the loss of the securities lent is mitigated by receiving collateral from the borrower and through lending agent indemnification, the fund could experience a delay in recovering securities or could experience a lower than expected return if the borrower fails to return the securities on a timely basis. The fund receives compensation for lending its securities by retaining a portion of the return on the investment of the collateral and compensation from fees earned from borrowers of the securities. Securities lending income received by the fund is net of fees retained by the securities lending agent. Net income received from JHCT is a component of securities lending income as recorded on the Statement of operations.
Obligations to repay collateral received by the fund are shown on the Statement(s) of assets and liabilities as Payable upon return of securities loaned and are secured by the loaned securities. As of January 31, 2018, the fund loaned securities valued at $7,183,242 and received $7,457,964 of cash collateral.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency
exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $2,274.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of July 31, 2017, the fund has a short-term capital loss carryforward of $27,551,101 and a long-term capital loss carryforward of $49,515,032 available to offset future net realized capital gains. These carryforwards do not expire.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares dividends daily and pays them monthly. Capital gain distributions, if any, are paid annually.
Distributions paid by the fund with respect to each class of shares are calculated in the same manner, at the same time and in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, derivative transactions, amortization and accretion on debt securities and paydowns.
Note 3 — Derivative Instruments
The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Forward foreign currency contracts, and swaps are typically traded through the OTC market. Certain forwards, options and swaps are regulated by the Commodity Futures Trading Commission. Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund for OTC transactions is held in a segregated account at the fund's custodian and is noted in the accompanying fund's investments, or if cash is posted, on the Statement of assets and liabilities as Cash segregated at custodian for OTC derivative contracts. The fund's risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Futures, certain options and centrally-cleared swaps are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Centrally-cleared swap contracts are subject to clearinghouse rules, including initial and variation margin requirements, daily settlement of obligations and the clearinghouse guarantee of payments to the broker. There is, however, still counterparty risk due to the potential insolvency of the broker with respect to any margin held in the brokers' customer accounts. While clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a shortfall in the amount of margin held by the broker for its clients. Collateral or margin requirements for exchange-traded or centrally-cleared derivatives are set by the broker or applicable clearinghouse. Margin for exchange-traded and centrally-cleared transactions is detailed in the Statements of assets and liabilities as Cash held at broker for futures contracts and Receivable for centrally-cleared swaps, respectively. Securities pledged by the fund for exchange-traded and centrally-cleared transactions, if any, are identified in the Fund's investments.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets, contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures contract, the fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is generally based on a percentage of the contract value; this amount is the initial margin for the trade. The margin deposit must then be maintained at the established level over the life of the contract. Futures margin receivable / payable is included on the Statement of assets and liabilities. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (variation margin) and unrealized gain or loss is recorded by the fund. When the contract is closed, the fund records a realized gain or loss 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.
During the six months ended January 31, 2018, the fund used futures contracts to manage duration of the fund. The fund held futures contracts with notional values ranging from $155.6 million to $218.1 million, as measured at each quarter end.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, the risk that currency movements will not favor the fund thereby reducing the fund's total return, and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the six months ended January 31, 2018, the fund used forward foreign currency contracts to manage against anticipated changes in currency exchange rates and gain exposure to foreign currencies. The fund held forward foreign currency contracts with U.S. Dollar notional values ranging from $74.7 million to $164.4 million, as measured at each quarter end.
Credit default swaps. 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 the premium and agreeing to contingent payments that are specified within the credit default agreement. The fund may enter into CDS in which it may act as either Buyer or Seller. By acting as the Seller, the fund may incur economic leverage since it would be obligated to pay the Buyer the notional amount of the contract in the event of a default. The amount of loss in such case could be significant, but would typically be reduced by any recovery value on the underlying credit.
Upfront payments made/received by the fund are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund.
Swaps are marked-to-market daily based upon values from third party vendors or broker quotations, and the change in value is recorded as unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that are in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve
the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.
During the six months ended January 31, 2018, the fund used CDS as a Buyer of protection to manage against potential credit events. The fund held credit default swap contracts with total USD notional amounts ranging from $103.5 million to $138.9 million, as measured at each quarter end.
Implied credit spreads are utilized in determining the market value of CDS agreements in which the fund is the Seller at period end. 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 creditworthiness and an increased risk of default or other credit event occurring as defined under the terms of the agreement.
For CDS agreements where implied credit spreads are not reported or available, the average credit rating on the underlying index is shown. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity's creditworthiness soundness and a greater likelihood of a credit event occurring. This is also represented by a decrease in the average credit rating of the underlying index. The maximum potential amount of future payments (undiscounted) that a fund as the Seller could be required to make under any CDS agreement equals the notional amount of the agreement.
During the six months ended January 31, 2018, the fund used CDS as a Seller of protection to take a long position in the exposure of the benchmark credit. The fund acted as Seller on credit default swap contracts with total USD notional amounts ranging up to $5.9 million, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at January 31, 2018 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | |||||||||||||
Interest rate | Receivable/payable for futures | Futures† | $3,025,412 | ($231,736 | ) | ||||||||||||
Foreign currency | Unrealized appreciation / depreciation on forward foreign currency contracts | Forward foreign currency contracts | 592,440 | (1,481,115 | ) | ||||||||||||
Credit | Swap contracts, at value | Credit default swaps^ | 231,173 | (9,100,471 | ) | ||||||||||||
$3,849,025 | ($10,813,322 | ) | |||||||||||||||
† Reflects cumulative appreciation/depreciation on futures as disclosed in the Fund's investments. Only the period end variation margin is separately disclosed on the Statement of assets and liabilities. | |||||||||||||||||
^ Reflects cumulative value of swap contracts. Receivable for centrally cleared swaps, which includes value and margin, and swap contracts at value, which represents OTC swaps, are shown separately on the Statement of assets and liabilities. |
For financial reporting purposes, the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Statement of assets and liabilities. In the event of default by the counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty.
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - net realized gain (loss) on: | ||||||||||||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total | ||||||||||
Credit | — | — | ($2,444,608 | ) | ($2,444,608 | ) | ||||||||
Foreign currency | — | ($851,873 | ) | — | (851,873 | ) | ||||||||
Interest rate | ($2,117,121 | ) | — | — | (2,117,121 | ) | ||||||||
Total | ($2,117,121 | ) | ($851,873 | ) | ($2,444,608 | ) | ($5,413,602 | ) |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - change in net unrealized appreciation (depreciation) of: | ||||||||||||||
Risk | Futures contracts | Forward foreign currency contracts | Swap contracts | Total | ||||||||||
Credit | — | — | ($576,804 | ) | ($576,804 | ) | ||||||||
Foreign currency | — | $162,325 | — | 162,325 | ||||||||||
Interest rate | $3,691,329 | — | — | 3,691,329 | ||||||||||
Total | $3,691,329 | $162,325 | ($576,804 | ) | $3,276,850 |
Note 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, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.740% of the first $250 million of the fund's aggregate daily net assets, b) 0.700% of the next $500 million of the fund's aggregate daily net assets and c) 0.675% of the fund's aggregate daily net assets in excess of $750 million. Aggregate net assets include the net assets of the fund and Short Duration Opportunities Fund, a sub-fund of John Hancock Worldwide Investors, PLC. The fund has a subadvisory agreement with Stone Harbor Investment Partners LP. The fund is not responsible for payment of the subadvisory fees.
The advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
Prior to December 1, 2017, the Advisor contractually agreed to reduce its management fee or, if necessary, make payments to the fund, in an amount equal to the amount by which expenses of Class A and Class I shares, as applicable, exceed 1.21% or
0.90%, respectively, of average net assets (on an annualized basis) of the class. For purposes of this agreement, "expenses of Class A and Class I shares" means all expenses of the applicable class (including fund expenses attributable to the class), excluding (a) taxes; (b) portfolio brokerage commissions; (c) interest expense; (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business; (e) underlying fund expenses (acquired fund fees); and (f) short dividend expense.
Prior to December 1, 2017, the Advisor had contractually agreed to waive and/or reimburse all class-specific expenses for Class R6 shares of the fund to the extent they exceeded 0.00% of average net assets, on an annualized basis, attributable to the class.
The expense reductions described above amounted to the following for the six months ended January 31, 2018:
Class | Expense reduction | Class | Expense reduction | |
Class A | $1,734 | Class R4 | $3 | |
Class C | 136 | Class R6 | 301 | |
Class I | 1,357 | Class NAV | 40,698 | |
Class R2 | 3 | Total | $44,232 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 0.69% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class C, Class R2 and Class R4 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for Class R2 and Class R4 shares, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee | Service fee | Class | Rule 12b-1 fee | Service fee | |
Class A | 0.30% | — | Class R2 | 0.25% | 0.25% | |
Class C | 1.00% | — | Class R4 | 0.25% | 0.10% |
The fund's Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on November 30, 2018, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $44 for Class R4 shares for the six months ended January 31, 2018.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $41,503 for the six months ended January 31, 2018. Of this amount, $8,555 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $32,888 was paid as sales commissions to broker-dealers and $60 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $250,000 or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied
to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, CDSCs received by the Distributor amounted to $11,322 and $358 for Class A and Class C shares, respectively.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $63,308 | $22,964 |
Class C | 16,097 | 1,751 |
Class I | — | 17,610 |
Class R2 | 108 | 5 |
Class R4 | 108 | 5 |
Class R6 | — | 243 |
Total | $79,621 | $42,578 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 8,583,755 | $83,482,876 | 11,919,870 | $115,158,148 | ||||||||||||||||||||||
Distributions reinvested | 66,478 | 646,798 | 91,301 | 882,443 | ||||||||||||||||||||||
Repurchased | (7,706,028 | ) | (74,963,794 | ) | (10,991,425 | ) | (106,214,740 | ) | ||||||||||||||||||
Net increase | 944,205 | $9,165,880 | 1,019,746 | $9,825,851 | ||||||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 48,714 | $473,947 | 172,401 | $1,661,700 | ||||||||||||||||||||||
Distributions reinvested | 4,130 | 40,188 | 6,957 | 67,208 | ||||||||||||||||||||||
Repurchased | (64,239 | ) | (624,794 | ) | (134,012 | ) | (1,293,125 | ) | ||||||||||||||||||
Net increase (decrease) | (11,395 | ) | ($110,659 | ) | 45,346 | $435,783 |
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 1,448,853 | $14,072,595 | 2,028,472 | $19,526,787 | ||||||||||||||||||||||
Distributions reinvested | 57,610 | 559,917 | 101,347 | 977,803 | ||||||||||||||||||||||
Repurchased | (1,352,501 | ) | (13,146,515 | ) | (1,181,034 | ) | (11,376,872 | ) | ||||||||||||||||||
Net increase | 153,962 | $1,485,997 | 948,785 | $9,127,718 | ||||||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Repurchased | (4,915 | ) | (47,676 | ) | — | — | ||||||||||||||||||||
Net increase (decrease) | (4,915 | ) | ($47,676 | ) | — | — | ||||||||||||||||||||
Class R4 shares | ||||||||||||||||||||||||||
Repurchased | (4,915 | ) | (47,676 | ) | — | — | ||||||||||||||||||||
Net increase (decrease) | (4,915 | ) | ($47,676 | ) | — | — | ||||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 449,786 | $4,382,314 | 47,525 | $460,122 | ||||||||||||||||||||||
Distributions reinvested | 7,208 | 70,099 | 4,928 | 47,598 | ||||||||||||||||||||||
Repurchased | (109,363 | ) | (1,064,728 | ) | (4,451 | ) | (42,710 | ) | ||||||||||||||||||
Net increase | 347,631 | $3,387,685 | 48,002 | $465,010 | ||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 1,068,985 | $10,372,944 | 3,709,210 | $35,758,518 | ||||||||||||||||||||||
Distributions reinvested | 1,797,582 | 17,496,705 | 3,904,052 | 37,715,672 | ||||||||||||||||||||||
Repurchased | (32,247,634 | ) | (313,380,279 | ) | (27,527,026 | ) | (264,617,580 | ) | ||||||||||||||||||
Net decrease | (29,381,067 | ) | ($285,510,630 | ) | (19,913,764 | ) | ($191,143,390 | ) | ||||||||||||||||||
Total net decrease | (27,956,494 | ) | ($271,677,079 | ) | (17,851,885 | ) | ($171,289,028 | ) |
There were no share transactions for the year ended July 31,2017 for Class R2 and Class R4.
Affiliates of the fund owned 100% of shares of Class R2, Class R4 and Class NAV, respectively, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $327,183,816 and $622,433,320, respectively, for the six months ended January 31, 2018.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At January 31, 2018, funds within the John Hancock group of funds complex held 90.7% of the fund's net assets. The following funds had an affiliate ownership of 5% or more of the fund's net assets:
Fund | Affiliate concentration |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 33.6% |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 13.6% |
John Hancock Funds II Multimanager Lifestyle Moderate Portfolio | 12.0% |
John Hancock Funds II Multimanager Lifestyle Conservative Portfolio | 11.9% |
John Hancock Funds II Alternative Asset Allocation Fund | 8.5% |
Note 9 — Interfund trading
The fund is permitted to purchase or sell securities from or to certain other affiliated funds, as set forth in Rule 17a-7 of the 1940 Act, under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the funds from or to another fund that is or could be considered an affiliate complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. Pursuant to these procedures, for the period ended January 31, 2018 the fund engaged in sales amounting to $6,398,966.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor Stone Harbor Investment Partners LP 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 |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
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| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Short Duration Credit Opportunities Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431086 | 350SA 1/18 3/18 |
John Hancock
Absolute Return Currency Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In the weeks following the close of the reporting period, markets around the world experienced a meaningful rise in volatility. Stocks declined as investors reacted to higher bond yields and the prospect of rising inflation, even if that inflation was off historically low levels. While many in our asset management network believe the sell-off will be temporary, it's likely the era of extremely low volatility is behind us for now.
Ultimately, market prices are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close. In the United States, unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
In step with these signals of domestic economic strength, synchronized global growth continued to gain momentum, which has contributed to favorable corporate earnings across the world's developed and emerging markets.
While markets delivered strong results over the course of the period, it's important for investors to be aware of the downside risks. Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence that accompanies investing in any market cycle.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Absolute Return Currency Fund
INVESTMENT OBJECTIVE
The fund seeks to achieve absolute return from investments in currency markets.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The Citigroup 1-Month U.S. Treasury Bill Index is a market value-weighted index of public obligations of the U.S. Treasury with maturities of one month.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
The fund underperformed its cash benchmark
After performing well in the first half of 2017, the fund gave back ground during the six months ended January 31, 2018.
The bulk of the shortfall occurred in December
The risk-on rally that closed out 2017 created an unusual market environment that pressured the U.S. dollar and acted as a headwind for our strategy.
Positioning in the U.S. dollar was the largest detractor
The fund was hurt by its positioning with respect to the U.S. and New Zealand dollars, offsetting its stronger showing in the British pound and euro.
CURRENCY ALLOCATION AS OF 1/31/18 (%)
A note about risks
Absolute return funds are not designed to outperform stocks and bonds in strong markets and there is no guarantee of positive returns. They employ certain techniques, which are intended to reduce risk and volatility in the portfolio and provide protection against a decline in the fund's assets. However, there is no guarantee that any investment strategy will be successful or that the fund's objectives will be achieved. Currency transactions are affected by fluctuations in exchange rates. The fund's losses could exceed the amount invested in its currency instruments. Currency rates in foreign countries may fluctuate significantly for a number of reasons, including the forces of supply and demand in the foreign exchange markets, actual or perceived changes in interest rates, and intervention (or the failure to intervene) by U.S. or foreign governments or central banks, or by currency controls or political developments in the United States or abroad. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Please see the fund's prospectus for additional risks.
Dori S. Levanoni
Portfolio Manager
First Quadrant LP
How would you describe market conditions during the six months ended January 31, 2018?
The past six months was an unusually positive time for the financial markets, with persistent investor optimism and very little volatility in higher-risk asset classes. Sentiment was boosted by the combination of accelerating global growth, rising corporate earnings, and the passage of a long-anticipated tax reform package in the United States late in the period. The favorable news flow led to strong returns for equities, especially the higher-risk segments of the market. At the same time, the resurgence in the world economy fueled rising bond yields as investors began to factor in the likelihood of tighter monetary policy by global central banks.
Among the major global currencies, the British pound, euro, Swiss franc, and Singapore dollar posted the largest gains against the world currency basket. The U.S., New Zealand, Canadian, and Australian dollars experienced the most significant declines.
How did the fund perform?
The fund's Class A shares lost 5.55% (excluding sales charges) and finished well behind the 0.53% return of its cash benchmark, the Citigroup 1-Month U.S. Treasury Bill Index. When assessing the fund's performance, it's important to keep in mind that our goal is to generate positive absolute returns over longer-term periods and not necessarily in shorter, six-month intervals.
The fund initially lost ground in August, before recovering to post a gain in the interval from September through November; however, it subsequently gave back the gains with a poor showing in December and January.
One reason for the downdraft in the latter half of the period was the unusually calm investment environment, which led to more protracted trends in individual currencies than would ordinarily be the case. Over time, we've found that the fund tends to perform best in markets with a higher degree of volatility. Its underperformance also reflected the fact that the highest-yielding currencies typically produce the best returns during periods of calm, and we don't incorporate yield—or carry, in market parlance—into our models, as carry strategies would increase the correlation of the fund to other investments, a characteristic we explicitly aim to avoid. Moreover, we would expect our approach to deliver the strongest results when stock prices are on the weaker side, and equities performed very well in the past six months.
With this as background, we remain confident in our strategy, which assesses a broad range of factors to provide diversified, balanced exposure to the global currency markets.
What elements of your strategy detracted from performance?
The fund's positioning in the U.S. and New Zealand dollars had the largest negative impact. Our U.S. dollar positioning contributed early on, as we timed the moves in the currency relatively well in the August through November interval. The fund initially benefited from a long position in the U.S. dollar, as well as a subsequent rotation to a short in November; however, a shift back to a long in December hurt performance as the dollar weakened in the final two months of the period. The resulting drawdown offset the gains generated previously, causing the U.S dollar to detract from the fund's return.
The fund's positioning in the New Zealand dollar initially detracted, as a long in August and September was out of step with the currency's weakness in that time. We subsequently made up the lost ground by switching to a short and capturing the continued downturn in the currency through October and November. However, the kiwi reversed course and rallied sharply in December
Positioning with respect to the Canadian dollar, Swedish krona, Norwegian krone, Singapore dollar, Japanese yen, and Australian dollar also detracted.
What specific aspects of the fund's strategy helped performance?
The fund generated positive returns from positioning in the euro and the British pound. It held a high-conviction long in the euro throughout the period, which enabled it to capitalize on the currency's robust gain. The euro was boosted by the combination of reduced protectionist sentiment, strong economic data, and signs that the European Central Bank was firming the timetable for a discontinuation of quantitative easing. The consistency of positioning in the euro was noteworthy, given that we generally rotated from positive to negative views on all other currencies in the basket. In the case of the euro, however, we moved to a bullish view early in 2017 and remained so thereafter.
The portfolio's positioning in the British pound also worked well, due in part to a long position that helped performance in October and November. Although we briefly moved to a short in late 2017, a subsequent shift back to a long enabled the fund to benefit from the currency's January rally.
How was the fund positioned at the end of period?
Keeping in mind that the portfolio's composition can change based on the signals from our models, the long in the euro remained our highest-conviction position at period end. The fund was also long in the Australian and U.S. dollars, as well as the British pound. Its largest short positions were in the Norwegian krone, the Singapore dollar, and the Canadian dollar. We had a fairly low overall risk exposure, as we sought to maintain the flexibility to capitalize on possible changes in the broader market environment.
Following the remarkably calm backdrop of the past six months, we see the potential for volatility to enter into the investment equation as 2018 progresses. We would welcome this development, as it could provide greater latitude for us to capture market opportunities through our active and diversified approach.
On a longer-term basis, we believe our multifaceted strategy can help the fund achieve our goals of generating a positive absolute return, delivering performance that is uncorrelated with traditional asset classes and providing a source of stability for investor portfolios when stock prices are falling.
MANAGED BY
Dori S. Levanoni On the fund since 2010 Investing since 1991 | |
Jeppe F. Ladekarl On the fund since 2012 Investing since 1995 |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 3.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R6, and NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until November 30, 2018 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | |
Gross (%) | 1.36 | 2.06 | 1.05 | 1.46 | 1.31 | 0.96 | 0.94 |
Net (%) | 1.36 | 2.06 | 1.05 | 1.46 | 1.21 | 0.96 | 0.94 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the Citigroup 1-Month U.S. Treasury Bill Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Absolute Return Currency Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Citigroup 1-Month U.S. Treasury Bill Index.
The Citigroup 1-Month U.S. Treasury Bill Index is a market value-weighted index of public obligators of the U.S. Treasury with maturities of one month.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | From 8-2-10. |
2 | Class C shares were first offered on 8-28-14; Class R2 and Class R4 shares were first offered on 3-27-15; Class R6 shares were first offered on 11-1-11. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
3 | For certain types of investors as described in the fund's prospectuses. |
4 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $944.50 | $6.47 | 1.32% |
Hypothetical example for comparison purposes | 1,000.00 | 1,018.60 | 6.72 | 1.32% | |
Class C | Actual expenses/actual returns | 1,000.00 | 941.70 | 9.89 | 2.02% |
Hypothetical example for comparison purposes | 1,000.00 | 1,015.00 | 10.26 | 2.02% | |
Class I | Actual expenses/actual returns | 1,000.00 | 946.10 | 5.00 | 1.02% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.10 | 5.19 | 1.02% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 945.10 | 6.08 | 1.24% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.00 | 6.31 | 1.24% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 945.30 | 5.30 | 1.08% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.80 | 5.50 | 1.08% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 947.50 | 4.52 | 0.92% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.60 | 4.69 | 0.92% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 947.70 | 4.47 | 0.91% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.60 | 4.63 | 0.91% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 115.6% | $2,086,266,652 | ||||
(Cost $2,086,719,265) | |||||
U.S. Government 108.6% | 1,960,781,050 | ||||
U.S. Treasury Bill | 1.090 | 03-01-18 | 100,000,000 | 99,891,014 | |
U.S. Treasury Bill | 1.108 | 02-01-18 | 146,200,000 | 146,200,000 | |
U.S. Treasury Bill (A) | 1.124 | 03-15-18 | 100,000,000 | 99,845,210 | |
U.S. Treasury Bill (A) | 1.208 | 04-05-18 | 255,000,000 | 254,406,646 | |
U.S. Treasury Bill (A) | 1.215 | 04-26-18 | 565,000,000 | 563,126,211 | |
U.S. Treasury Bill | 1.271 | 04-19-18 | 630,000,000 | 628,130,160 | |
U.S. Treasury Bill | 1.456 | 05-31-18 | 170,000,000 | 169,181,809 |
Yield (%) | Shares | Value | |||
Money market funds 7.0% | 125,485,602 | ||||
State Street Institutional Treasury Plus Money Market Fund, Premier Class | 1.2238(B) | 125,485,602 | 125,485,602 |
Total investments (Cost $2,086,719,265) 115.6% | $2,086,266,652 | ||||
Other assets and liabilities, net (15.6%) | (281,411,833) | ||||
Total net assets 100.0% | $1,804,854,819 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
(A) | All or a portion of this security is segregated at the custodian as collateral for certain derivatives. |
(B) | The rate shown is the annualized seven-day yield as of 1-31-18. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
12 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
AUD | 301,653,024 | USD | 233,860,542 | Barclays Bank PLC Wholesale | 3/21/2018 | $9,172,292 | — |
AUD | 68,539,319 | USD | 53,841,062 | Deutsche Bank AG London | 3/21/2018 | 1,379,021 | — |
AUD | 559,421,385 | USD | 441,197,731 | J. Aron & Company | 3/21/2018 | 9,511,372 | — |
AUD | 745,726,928 | USD | 580,163,872 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 20,646,046 | — |
AUD | 1,035,353,733 | USD | 789,174,880 | State Street Bank and Trust Company | 3/21/2018 | 44,978,715 | — |
CAD | 64,461,466 | USD | 51,967,661 | Barclays Bank PLC Wholesale | 3/21/2018 | 469,345 | — |
CAD | 328,098,340 | USD | 262,324,888 | Deutsche Bank AG London | 3/21/2018 | 4,570,909 | — |
CAD | 595,005,853 | USD | 472,286,528 | J. Aron & Company | 3/21/2018 | 11,728,607 | — |
CAD | 1,117,898,173 | USD | 885,753,307 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 23,615,284 | — |
CAD | 505,202,000 | USD | 397,268,372 | State Street Bank and Trust Company | 3/21/2018 | 13,694,665 | — |
EUR | 133,985,938 | USD | 159,552,197 | Barclays Bank PLC Wholesale | 3/21/2018 | 7,315,570 | — |
EUR | 506,569,447 | USD | 606,989,241 | Deutsche Bank AG London | 3/21/2018 | 23,898,699 | — |
EUR | 60,895,040 | USD | 73,126,436 | J. Aron & Company | 3/21/2018 | 2,713,010 | — |
EUR | 409,377,607 | USD | 486,307,350 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 23,536,654 | — |
EUR | 168,706,065 | USD | 201,576,755 | State Street Bank and Trust Company | 3/21/2018 | 8,531,894 | — |
GBP | 297,785,535 | USD | 404,670,866 | Barclays Bank PLC Wholesale | 3/21/2018 | 18,913,833 | — |
GBP | 463,117,316 | USD | 636,213,523 | Deutsche Bank AG London | 3/21/2018 | 22,547,181 | — |
GBP | 352,320,947 | USD | 481,817,402 | J. Aron & Company | 3/21/2018 | 19,341,130 | — |
GBP | 347,049,393 | USD | 470,130,794 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 23,529,222 | — |
GBP | 421,343,016 | USD | 568,676,328 | State Street Bank and Trust Company | 3/21/2018 | 30,662,569 | — |
JPY | 24,598,606,950 | USD | 220,570,929 | Barclays Bank PLC Wholesale | 3/22/2018 | 5,375,389 | — |
JPY | 39,349,621,077 | USD | 352,254,573 | Deutsche Bank AG London | 3/22/2018 | 9,184,672 | — |
JPY | 108,223,718,071 | USD | 968,901,159 | J. Aron & Company | 3/22/2018 | 25,169,389 | — |
JPY | 28,022,617,190 | USD | 251,826,722 | Morgan Stanley Capital Services, Inc. | 3/22/2018 | 5,570,261 | — |
JPY | 7,550,023,830 | USD | 67,703,472 | State Street Bank and Trust Company | 3/22/2018 | 1,645,986 | — |
NOK | 3,537,686,959 | USD | 426,477,866 | Deutsche Bank AG London | 3/21/2018 | 33,108,321 | — |
NOK | 1,120,522,873 | USD | 138,968,558 | J. Aron & Company | 3/21/2018 | 6,600,241 | — |
NOK | 1,723,103,993 | USD | 208,202,122 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 15,648,888 | — |
NZD | 137,374,448 | USD | 99,526,821 | Barclays Bank PLC Wholesale | 3/21/2018 | 1,659,258 | — |
NZD | 463,221,408 | USD | 329,549,339 | Deutsche Bank AG London | 3/21/2018 | 11,646,266 | — |
NZD | 333,586,061 | USD | 242,003,819 | J. Aron & Company | 3/21/2018 | 3,706,107 | — |
NZD | 1,343,562,676 | USD | 961,383,211 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 28,246,525 | — |
NZD | 917,471,748 | USD | 660,797,804 | State Street Bank and Trust Company | 3/21/2018 | 14,985,575 | — |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 13 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
SEK | 5,146,733,923 | USD | 619,582,739 | Deutsche Bank AG London | 3/21/2018 | $35,667,402 | — |
SEK | 2,673,273,211 | USD | 322,637,262 | J. Aron & Company | 3/21/2018 | 17,707,251 | — |
SEK | 5,011,031,022 | USD | 612,226,019 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 25,747,274 | — |
SEK | 639,779,908 | USD | 77,590,778 | State Street Bank and Trust Company | 3/21/2018 | 3,862,019 | — |
SGD | 51,847,101 | USD | 38,844,054 | Barclays Bank PLC Wholesale | 3/21/2018 | 718,717 | — |
SGD | 58,320,525 | USD | 43,461,933 | J. Aron & Company | 3/21/2018 | 1,040,489 | — |
SGD | 1,033,333,907 | USD | 775,437,635 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | 13,064,557 | — |
USD | 255,814,692 | AUD | 333,295,608 | Barclays Bank PLC Wholesale | 3/21/2018 | — | $(12,711,626) |
USD | 286,153,608 | AUD | 376,097,270 | Deutsche Bank AG London | 3/21/2018 | — | (16,856,731) |
USD | 379,209,423 | AUD | 495,328,510 | J. Aron & Company | 3/21/2018 | — | (19,861,967) |
USD | 343,125,788 | AUD | 444,374,979 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (14,893,861) |
USD | 155,078,351 | AUD | 202,377,072 | State Street Bank and Trust Company | 3/21/2018 | — | (7,970,814) |
USD | 503,477,535 | CAD | 644,340,946 | Barclays Bank PLC Wholesale | 3/21/2018 | — | (20,669,861) |
USD | 432,590,083 | CAD | 547,320,658 | Deutsche Bank AG London | 3/21/2018 | — | (12,634,917) |
USD | 187,744,622 | CAD | 238,642,453 | J. Aron & Company | 3/21/2018 | — | (6,382,141) |
USD | 449,871,369 | CAD | 571,730,812 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (15,210,379) |
USD | 789,324,914 | CAD | 1,010,346,821 | State Street Bank and Trust Company | 3/21/2018 | — | (32,554,653) |
USD | 18,845,157 | EUR | 15,674,585 | Deutsche Bank AG London | 3/21/2018 | — | (676,169) |
USD | 87,968,131 | EUR | 71,754,043 | J. Aron & Company | 3/21/2018 | — | (1,395,255) |
USD | 28,493,574 | EUR | 23,786,753 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (1,130,747) |
USD | 26,904,327 | EUR | 22,529,452 | State Street Bank and Trust Company | 3/21/2018 | — | (1,154,136) |
USD | 701,606,139 | GBP | 515,607,371 | Barclays Bank PLC Wholesale | 3/21/2018 | — | (31,818,988) |
USD | 344,297,724 | GBP | 247,676,166 | Deutsche Bank AG London | 3/21/2018 | — | (8,008,959) |
USD | 206,668,739 | GBP | 152,593,803 | J. Aron & Company | 3/21/2018 | — | (10,388,143) |
USD | 400,737,466 | GBP | 296,457,934 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (20,958,788) |
USD | 605,141,659 | GBP | 445,470,366 | State Street Bank and Trust Company | 3/21/2018 | — | (28,517,161) |
USD | 66,497,707 | JPY | 7,452,095,589 | Barclays Bank PLC Wholesale | 3/22/2018 | — | (1,952,250) |
USD | 110,945,715 | JPY | 12,463,732,551 | Deutsche Bank AG London | 3/22/2018 | — | (3,537,780) |
USD | 1,063,799,796 | JPY | 118,785,034,023 | J. Aron & Company | 3/22/2018 | — | (27,279,916) |
USD | 457,611,308 | JPY | 50,656,583,963 | Morgan Stanley Capital Services, Inc. | 3/22/2018 | — | (7,686,120) |
USD | 101,420,572 | JPY | 11,400,394,825 | State Street Bank and Trust Company | 3/22/2018 | — | (3,295,815) |
USD | 6,163,565 | NOK | 50,872,217 | Barclays Bank PLC Wholesale | 3/21/2018 | — | (445,321) |
USD | 723,561,550 | NOK | 5,865,775,619 | Deutsche Bank AG London | 3/21/2018 | — | (38,470,110) |
USD | 68,838,380 | NOK | 558,184,068 | J. Aron & Company | 3/21/2018 | — | (3,676,145) |
14 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
USD | 907,480,239 | NOK | 7,466,389,585 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | $(62,489,561) |
USD | 382,676,520 | NOK | 3,137,990,600 | State Street Bank and Trust Company | 3/21/2018 | — | (24,984,520) |
USD | 174,345,542 | NZD | 242,726,846 | Barclays Bank PLC Wholesale | 3/21/2018 | — | (4,440,093) |
USD | 112,338,861 | NZD | 162,952,658 | Deutsche Bank AG London | 3/21/2018 | — | (7,687,396) |
USD | 728,430,062 | NZD | 1,027,320,447 | J. Aron & Company | 3/21/2018 | — | (28,264,722) |
USD | 756,123,149 | NZD | 1,084,513,470 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (42,698,378) |
USD | 563,710,926 | NZD | 820,285,045 | State Street Bank and Trust Company | 3/21/2018 | — | (40,487,517) |
USD | 159,349,172 | SEK | 1,333,928,710 | Barclays Bank PLC Wholesale | 3/21/2018 | — | (10,478,332) |
USD | 445,419,026 | SEK | 3,677,003,396 | Deutsche Bank AG London | 3/21/2018 | — | (22,714,171) |
USD | 181,648,663 | SEK | 1,495,499,222 | J. Aron & Company | 3/21/2018 | — | (8,748,996) |
USD | 460,915,205 | SEK | 3,771,246,094 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (19,216,388) |
USD | 594,776,974 | SEK | 4,924,814,518 | State Street Bank and Trust Company | 3/21/2018 | — | (32,219,772) |
USD | 102,797,881 | SGD | 138,562,292 | Barclays Bank PLC Wholesale | 3/21/2018 | — | (2,934,323) |
USD | 20,176,787 | SGD | 27,270,945 | Deutsche Bank AG London | 3/21/2018 | — | (632,750) |
USD | 187,243,569 | SGD | 253,029,725 | J. Aron & Company | 3/21/2018 | — | (5,834,866) |
USD | 884,057,160 | SGD | 1,184,669,505 | Morgan Stanley Capital Services, Inc. | 3/21/2018 | — | (19,924,117) |
USD | 437,125,426 | SGD | 588,622,170 | State Street Bank and Trust Company | 3/21/2018 | — | (12,032,267) |
$581,110,605 | $(695,926,922) |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
CAD | Canadian Dollar |
EUR | Euro |
GBP | Pound Sterling |
JPY | Japanese Yen |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
SEK | Swedish Krona |
SGD | Singapore Dollar |
USD | U.S. Dollar |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 15 |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Investments, at value (Cost $2,086,719,265) | $2,086,266,652 | |||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 581,110,605 | |||||||||||||||||||||||||||||
Receivable for fund shares sold | 3,407,389 | |||||||||||||||||||||||||||||
Interest receivable | 99,917 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 108,672 | |||||||||||||||||||||||||||||
Total assets | 2,670,993,235 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 695,926,922 | |||||||||||||||||||||||||||||
Payable for investments purchased | 169,181,809 | |||||||||||||||||||||||||||||
Payable for fund shares repurchased | 743,315 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 83,926 | |||||||||||||||||||||||||||||
Transfer agent fees | 81,717 | |||||||||||||||||||||||||||||
Distribution and service fees | 2 | |||||||||||||||||||||||||||||
Trustees' fees | 1,960 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 118,765 | |||||||||||||||||||||||||||||
Total liabilities | 866,138,416 | |||||||||||||||||||||||||||||
Net assets | $1,804,854,819 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $1,920,208,266 | |||||||||||||||||||||||||||||
Accumulated net investment loss | (978,449 | ) | ||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | 893,933 | |||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | (115,268,931 | ) | ||||||||||||||||||||||||||||
Net assets | $1,804,854,819 | |||||||||||||||||||||||||||||
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 ($18,347,305 ÷ 2,033,530 shares)1 | $9.02 | |||||||||||||||||||||||||||||
Class C ($962,967 ÷ 106,490 shares)1 | $9.04 | |||||||||||||||||||||||||||||
Class I ($805,441,593 ÷ 86,603,108 shares) | $9.30 | |||||||||||||||||||||||||||||
Class R2 ($75,715 ÷ 8,138 shares) | $9.30 | |||||||||||||||||||||||||||||
Class R4 ($47,336 ÷ 5,071 shares) | $9.33 | |||||||||||||||||||||||||||||
Class R6 ($163,223,153 ÷ 17,386,928 shares) | $9.39 | |||||||||||||||||||||||||||||
Class NAV ($816,756,750 ÷ 86,728,779 shares) | $9.42 | |||||||||||||||||||||||||||||
Maximum offering price per share | ||||||||||||||||||||||||||||||
Class A (net asset value per share ÷ 97%)2 | $9.30 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $100,000. On sales of $100,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Interest | $9,333,925 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 7,181,874 | |||||||||||||||||||||||
Distribution and service fees | 36,468 | |||||||||||||||||||||||
Accounting and legal services fees | 139,961 | |||||||||||||||||||||||
Transfer agent fees | 364,681 | |||||||||||||||||||||||
Trustees' fees | 11,365 | |||||||||||||||||||||||
State registration fees | 57,754 | |||||||||||||||||||||||
Printing and postage | 29,040 | |||||||||||||||||||||||
Professional fees | 57,356 | |||||||||||||||||||||||
Custodian fees | 85,173 | |||||||||||||||||||||||
Other | 17,227 | |||||||||||||||||||||||
Total expenses | 7,980,899 | |||||||||||||||||||||||
Less expense reductions | (75,905 | ) | ||||||||||||||||||||||
Net expenses | 7,904,994 | |||||||||||||||||||||||
Net investment income | 1,428,931 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Investments and foreign currency transactions | (7,015,999 | ) | ||||||||||||||||||||||
Forward foreign currency contracts | 8,064,390 | |||||||||||||||||||||||
1,048,391 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Unaffiliated investments and translation of assets and liabilities in foreign currencies | (348,688 | ) | ||||||||||||||||||||||
Forward foreign currency contracts | (91,866,994 | ) | ||||||||||||||||||||||
(92,215,682 | ) | |||||||||||||||||||||||
Net realized and unrealized loss | (91,167,291 | ) | ||||||||||||||||||||||
Decrease in net assets from operations | ($89,738,360 | ) |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | ||||||||||||||||||||||||||||||||||||||||||||
From operations | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | $1,428,931 | ($5,180,263 | ) | |||||||||||||||||||||||||||||||||||||||||
Net realized gain | 1,048,391 | 96,762,781 | ||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (92,215,682 | ) | (39,212,125 | ) | ||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets resulting from operations | (89,738,360 | ) | 52,370,393 | |||||||||||||||||||||||||||||||||||||||||
From fund share transactions | 477,141,675 | 315,931,106 | ||||||||||||||||||||||||||||||||||||||||||
Total increase | 387,403,315 | 368,301,499 | ||||||||||||||||||||||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 1,417,451,504 | 1,049,150,005 | ||||||||||||||||||||||||||||||||||||||||||
End of period | $1,804,854,819 | $1,417,451,504 | ||||||||||||||||||||||||||||||||||||||||||
Accumulated net investment loss | ($978,449 | ) | ($2,407,380 | ) |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.54 | $9.11 | $8.23 | $9.63 | $9.91 | $9.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss2 | (0.01 | ) | (0.08 | ) | (0.10 | ) | (0.12 | ) | (0.13 | ) | (0.14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.51 | ) | 0.51 | 0.98 | (0.98 | ) | 0.50 | 1.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.52 | ) | 0.43 | 0.88 | (1.10 | ) | 0.37 | 0.88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.30 | ) | (0.65 | ) | (0.13 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.02 | $9.54 | $9.11 | $8.23 | $9.63 | $9.91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | (5.55 | ) 5 | 4.83 | 10.56 | (11.51 | ) | 4.13 | 9.69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $18 | $22 | $21 | $22 | $48 | $28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.33 | 6 | 1.35 | 1.37 | 1.37 | 1.42 | 1.61 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.32 | 6 | 1.34 | 1.36 | 1.35 | 1.42 | 1.60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (0.20 | ) 6 | (0.83 | ) | (1.13 | ) | (1.29 | ) | (1.36 | ) | (1.50 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)7 | 0 | 0 | 0 | 0 | 0 | 0 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Class C Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.60 | $9.23 | $8.40 | $10.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss3 | (0.04 | ) | (0.15 | ) | (0.16 | ) | (0.18 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.52 | ) | 0.52 | 0.99 | (1.13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.56 | ) | 0.37 | 0.83 | (1.31 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.30 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.04 | $9.60 | $9.23 | $8.40 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4,5 | (5.83 | ) 6 | 4.01 | 9.88 | (13.29 | ) 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $1 | $1 | $1 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 2.03 | 8 | 2.05 | 2.07 | 3.04 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 2.02 | 8 | 2.04 | 2.06 | 2.25 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (0.90 | ) 8 | (1.52 | ) | (1.81 | ) | (2.19 | ) 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)9 | 0 | 0 | 0 | 0 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class C shares is 8-28-14. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.82 | $9.35 | $8.42 | $9.81 | $10.05 | $9.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)2 | 0.01 | (0.05 | ) | (0.07 | ) | (0.09 | ) | (0.10 | ) | (0.10 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.53 | ) | 0.52 | 1.00 | (1.00 | ) | 0.51 | 1.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.52 | ) | 0.47 | 0.93 | (1.09 | ) | 0.41 | 0.94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.30 | ) | (0.65 | ) | (0.13 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.30 | $9.82 | $9.35 | $8.42 | $9.81 | $10.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | (5.39 | ) 4 | 5.13 | 11.05 | (11.29 | ) | 4.49 | 10.26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $805 | $397 | $210 | $371 | $392 | $65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.03 | 5 | 1.04 | 1.05 | 1.03 | 1.05 | 1.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.02 | 5 | 1.03 | 1.04 | 1.02 | 1.05 | 1.11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.13 | 5 | (0.49 | ) | (0.82 | ) | (0.96 | ) | (1.00 | ) | (1.01 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)6 | 0 | 0 | 0 | 0 | 0 | 0 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Class R2 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.83 | $9.38 | $8.46 | $8.70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss3 | (0.01 | ) | (0.07 | ) | (0.09 | ) | (0.03 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.52 | ) | 0.52 | 1.01 | (0.21 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.53 | ) | 0.45 | 0.92 | (0.24 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.30 | $9.83 | $9.38 | $8.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | (5.49 | ) 5 | 4.90 | 10.87 | (2.76 | ) 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 6 | — | 6 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.25 | 7 | 1.20 | 1.23 | 1.18 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.24 | 7 | 1.20 | 1.22 | 1.16 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (0.14 | ) 7 | (0.68 | ) | (0.98 | ) | (1.08 | ) 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)8 | 0 | 0 | 0 | 0 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R2 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Class R4 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.86 | $9.39 | $8.47 | $8.70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)3 | — | 4 | (0.06 | ) | (0.08 | ) | (0.03 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.53 | ) | 0.53 | 1.00 | (0.20 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.53 | ) | 0.47 | 0.92 | (0.23 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.33 | $9.86 | $9.39 | $8.47 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)5 | (5.47 | ) 6 | 5.11 | 10.86 | (2.64 | ) 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 7 | — | 7 | — | 7 | — | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.18 | 8 | 1.19 | 1.21 | 1.18 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.08 | 8 | 1.09 | 1.10 | 1.06 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.03 | 8 | (0.57 | ) | (0.87 | ) | (0.98 | ) 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)9 | — | — | — | — |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R4 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Total returns would have been lower had certain expenses not been reduced during the period. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Class R6 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.91 | $9.42 | $8.48 | $9.86 | $10.09 | $9.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)2 | 0.01 | (0.03 | ) | (0.06 | ) | (0.08 | ) | (0.09 | ) | (0.09 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.53 | ) | 0.52 | 1.00 | (1.00 | ) | 0.51 | 1.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.52 | ) | 0.49 | 0.94 | (1.08 | ) | 0.42 | 0.95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.30 | ) | (0.65 | ) | (0.13 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.39 | $9.91 | $9.42 | $8.48 | $9.86 | $10.09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | (5.25 | ) 4 | 5.20 | 11.08 | (11.13 | ) | 4.58 | 10.34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $163 | $137 | $38 | $37 | $81 | $4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.93 | 5 | 0.95 | 0.96 | 0.94 | 1.04 | 1.52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.92 | 5 | 0.92 | 0.93 | 0.90 | 0.99 | 1.05 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.21 | 5 | (0.32 | ) | (0.71 | ) | (0.84 | ) | (0.94 | ) | (0.95 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)6 | 0 | 0 | 0 | 0 | 0 | 0 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Class NAV Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $9.94 | $9.45 | $8.50 | $9.89 | $10.11 | $9.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)2 | 0.01 | (0.04 | ) | (0.06 | ) | (0.08 | ) | (0.08 | ) | (0.08 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.53 | ) | 0.53 | 1.01 | (1.01 | ) | 0.51 | 1.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | (0.52 | ) | 0.49 | 0.95 | (1.09 | ) | 0.43 | 0.96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | (0.30 | ) | (0.65 | ) | (0.13 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $9.42 | $9.94 | $9.45 | $8.50 | $9.89 | $10.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | (5.23 | ) 4 | 5.19 | 11.05 | (11.10 | ) | 4.66 | 10.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $817 | $860 | $779 | $886 | $1,363 | $1,098 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.92 | 5 | 0.93 | 0.94 | 0.91 | 0.91 | 0.92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.91 | 5 | 0.92 | 0.93 | 0.90 | 0.91 | 0.92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.21 | 5 | (0.41 | ) | (0.71 | ) | (0.84 | ) | (0.85 | ) | (0.82 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%)6 | 0 | 0 | 0 | 0 | 0 | 0 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | The calculation of portfolio turnover excludes amounts from securities whose maturities or expiration dates at the time of acquisition were one year or less, which represents a significant amount of the investments held by the fund. As a result, the portfolio turnover is 0%. |
Note 1 — Organization
John Hancock Absolute Return Currency Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek to achieve absolute return from investments in currency markets.
The funds may offer multiple classes of shares. The shares currently offered are detailed in the Statements of assets and liabilities. Class A and Class C are open to all investors. Class I shares are offered to institutions and certain investors. Class R2 and Class R4 shares are available only to certain retirement plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds, retirement plans for employees of John Hancock and/or Manulife Financial Corporation, and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of January 31, 2018, all investments are categorized as Level 2 under the hierarchy described above, except for the money market fund, which is categorized as Level 1.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $2,391.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of July 31, 2017, the fund has a long-term capital loss carryforward of $18,202,213 available to offset future net realized capital gains. This carryforward does not expire.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends and capital gain 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 in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to net operating losses and derivative transactions.
Note 3 — Derivative Instruments
The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Forward foreign currency contracts are typically traded through the OTC market. Certain forwards are regulated by the Commodity Futures Trading Commission. Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund for OTC transactions is held in a segregated account at the fund's custodian and is noted in the accompanying fund's investments, or if cash is posted, on the Statement of assets and liabilities. The fund's maximum risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if
applicable, the risk that currency movements will not favor the fund thereby reducing the fund's total return, and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the six months ended January 31, 2018, the fund used forward foreign currency contracts to manage and gain exposure to foreign currencies. The fund held forward foreign currency contracts with U.S. Dollar notional values ranging from $24.0 billion to $31.6 billion, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at January 31, 2018 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | |||||||||||||
Foreign currency | Unrealized appreciation / depreciation on forward foreign currency contracts | Forward foreign currency contracts | $581,110,605 | ($695,926,922 | ) |
For financial reporting purposes, the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Statement of assets and liabilities. In the event of default by the counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty. The fund's exposure to counterparties subject to an ISDA is comprised of forward foreign currency assets and liabilities amounting to $581,110,605 and ($695,926,922) respectively. The table below reflects the fund's exposure to counterparties subject to an ISDA for OTC derivative transactions:
Counterparty | Total market value of OTC derivatives | Collateral posted by counterparty | Collateral posted by fund | Net exposure | ||||||||||
Barclays Bank PLC Wholesale | ($41,826,390 | ) | — | $39,211,827 | ($2,614,563 | ) | ||||||||
Deutsche Bank AG London | 30,783,488 | $29,447,889 | — | 1,335,599 | ||||||||||
J. Aron & Company | (14,314,555 | ) | — | 14,314,555 | — | |||||||||
Morgan Stanley Capital Services, Inc. | (24,603,628 | ) | — | 24,603,628 | — | |||||||||
State Street Bank and Trust Company | (64,855,232 | ) | — | 62,231,925 | (2,623,307 | ) | ||||||||
Totals | ($114,816,317 | ) | $29,447,889 | $140,361,935 | ($3,902,271 | ) |
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - net realized gain (loss) on: | |
Risk | Forward foreign currency contracts |
Foreign currency | $8,064,390 |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - change in net unrealized appreciation (depreciation) of: | |||||
Risk | Forward foreign currency contracts | ||||
Foreign currency | ($91,866,994 | ) |
Note 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, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor, on an annual basis, equal to the sum of: a) 0.95% of the first $250 million of the fund's average daily net assets; b) 0.90% of the next $250 million of the fund's average daily net assets; and c) 0.85% of the fund's average daily net assets in excess of $500 million. The Advisor has a subadvisory agreement with First Quadrant, L.P. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
Prior to December 1, 2017, the Advisor had contractually agreed to waive and/or reimburse all class-specific expenses for Class R6 shares of the fund to the extent they exceeded 0.00% of average net assets, on an annualized basis, attributable to the class.
The expense reductions described above amounted to the following for the six months ended January 31, 2018:
Class | Expense reduction | Class | Expense reduction | |
Class A | $862 | Class R4 | $4 | |
Class C | 45 | Class R6 | 12,983 | |
Class I | 26,491 | Class NAV | 35,467 | |
Class R2 | 5 | Total | $75,857 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods. The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended January 31, 2018, were equivalent to a net annual effective rate of 0.86% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including
the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class C, Class R2 and Class R4 pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for Class R2 and Class R4 shares, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee | Service fee | Class | Rule 12b-1 fee | Service fee | |
Class A | 0.30% | — | Class R2 | 0.25% | 0.25% | |
Class C | 1.00% | — | Class R4 | 0.25% | 0.10% |
The fund's Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on November 30, 2018, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $48 for Class R4 shares for the six months ended January 31, 2018.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $483 for the six months ended January 31, 2018. Of this amount, $81 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $402 was paid as sales commissions to broker-dealers and $0 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, CDSCs received by the Distributor amounted to $61 for Class C shares and there were no CDSCs for Class A shares.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees | ||||||
Class A | $30,851 | $11,175 | ||||||
Class C | 5,302 | 576 | ||||||
Class I | — | 343,187 | ||||||
Class R2 | 195 | 8 |
Class | Distribution and service fees | Transfer agent fees | ||||||
Class R4 | $120 | $6 | ||||||
Class R6 | — | 9,729 | ||||||
Total | $36,468 | $364,681 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 153,528 | $1,429,489 | 1,444,832 | $13,810,524 | ||||||||||||||||||||||
Repurchased | (392,749 | ) | (3,660,903 | ) | (1,441,413 | ) | (13,717,280 | ) | ||||||||||||||||||
Net increase (decrease) | (239,221 | ) | ($2,231,414 | ) | 3,419 | $93,244 | ||||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 2,862 | $27,000 | 47,234 | $453,567 | ||||||||||||||||||||||
Repurchased | (17,510 | ) | (163,175 | ) | (33,963 | ) | (321,405 | ) | ||||||||||||||||||
Net increase (decrease) | (14,648 | ) | ($136,175 | ) | 13,271 | $132,162 | ||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 55,494,303 | $533,466,053 | 34,087,698 | $331,495,536 | ||||||||||||||||||||||
Repurchased | (9,366,407 | ) | (88,969,060 | ) | (16,127,876 | ) | (158,717,093 | ) | ||||||||||||||||||
Net increase | 46,127,896 | $444,496,993 | 17,959,822 | $172,778,443 | ||||||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Sold | 551 | $5,285 | 2,500 | $24,889 | ||||||||||||||||||||||
Repurchased | (6,407 | ) | (62,324 | ) | (1,065 | ) | (10,374 | ) | ||||||||||||||||||
Net increase (decrease) | (5,856 | ) | ($57,039 | ) | 1,435 | $14,515 | ||||||||||||||||||||
Class R4 shares | ||||||||||||||||||||||||||
Repurchased | (6,423 | ) | (62,560 | ) | — | — | ||||||||||||||||||||
Net increase (decrease) | (6,423 | ) | ($62,560 | ) | — | — | ||||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 9,530,797 | $91,568,506 | 10,808,194 | $108,643,532 | ||||||||||||||||||||||
Repurchased | (5,992,657 | ) | (57,230,686 | ) | (986,755 | ) | (9,797,134 | ) | ||||||||||||||||||
Net increase | 3,538,140 | $34,337,820 | 9,821,439 | $98,846,398 | ||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 5,577,257 | $53,632,247 | 13,023,797 | $130,720,232 | ||||||||||||||||||||||
Repurchased | (5,358,738 | ) | (52,838,197 | ) | (8,940,970 | ) | (86,653,888 | ) | ||||||||||||||||||
Net increase | 218,519 | $794,050 | 4,082,827 | $44,066,344 | ||||||||||||||||||||||
Total net increase | 49,618,407 | $477,141,675 | 31,882,213 | $315,931,106 |
There were no fund share transactions for Class R4 for the year ended July 31, 2017.
Affiliates of the fund owned 62%, 100% and 100% of shares of Class R2, Class R4 and Class NAV, respectively, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
For the six months ended January 31, 2018, all purchases and sales of investments were short-term.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At January 31, 2018, funds within the John Hancock group of funds complex held 45.3% of the fund's net assets. The following funds had an affiliate ownership of 5% or more of the fund's net assets:
Fund | Affiliated concentration |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 11.8% |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 11.0% |
John Hancock Funds II Multimanager Lifestyle Conservative Portfolio | 5.0% |
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor First Quadrant, L.P. 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 |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
John Hancock family of funds
DOMESTIC EQUITY FUNDS Balanced Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Fundamental All Cap Core Fundamental Large Cap Core Fundamental Large Cap Value New Opportunities Small Cap Core Small Cap Value Small Company Strategic Growth U.S. Global Leaders Growth U.S. Growth Value Equity GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Greater China Opportunities International Growth International Small Company International Value Equity | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Global Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Credit Opportunities Spectrum Income Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Enduring Assets Financial Industries Global Absolute Return Strategies Global Conservative Absolute Return Global Focused Strategies Natural Resources Redwood Regional Bank Seaport Technical Opportunities |
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Absolute Return Currency Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431077 | 364SA 1/18 3/18 |
John Hancock
Fundamental All Cap Core Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In the weeks following the close of the reporting period, markets around the world experienced a meaningful rise in volatility. Stocks declined as investors reacted to higher bond yields and the prospect of rising inflation, even if that inflation was up from historically low levels. While some in the asset management community believe the sell-off will be temporary, it's likely that the era of extremely low volatility is behind us for the time being.
Ultimately, asset prices are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close: Unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
The recently passed tax reform legislation appears poised to inject substantial stimulus into U.S. businesses at the same time that industry regulations are being rolled back across large swaths of the economy, including the systemically important financials sector. One moderating factor is the U.S. Federal Reserve's continued tightening of monetary policy. In mid-December, the federal funds rate was lifted by a quarter of a percentage point, the fifth such increase in the current cycle. While rising interest rates alone may not cause the economy to pull back, markets will be closely attuned to any suggestion that policymakers may quicken the pace of interest-rate increases in the year ahead.
Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence that accompanies investing in any market cycle.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Fundamental All Cap Core Fund
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The 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.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
U.S. stocks benefited from economic recovery and tax reform
Stocks gained as improved economic growth and a late-period major overhaul to the U.S. tax code bolstered corporate earnings growth prospects.
More economically sensitive sectors led the rally
Investors favored sectors with the most exposure to the economic recovery, with especially notable gains coming from the information technology, consumer discretionary, financials, and industrials sectors.
Stock picks in consumer discretionary fueled the fund's outperformance
Security selection in the consumer discretionary sector was especially strong, helping to drive the fund ahead of its benchmark, the Russell 3000 Index.
SECTOR COMPOSITION AS OF 1/31/18 (%)
A note about risks
A fund concentrated in one sector or that holds a limited number of securities may fluctuate more than a fund that invests in a wider variety of sectors. Stock prices can be volatile and are affected by both general economic conditions and the financial prospects of individual companies. Large company stocks could fall out of favor. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. The value of a company's equity securities is subject to changes in the company's financial condition and overall market and economic conditions. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Please see the fund's prospectus for additional risks.
An interview with Portfolio Manager Emory W. (Sandy) Sanders, Jr., CFA, John Hancock Asset Management a division of Manulife Asset Management (US) LLC
Emory W. (Sandy)Sanders, Jr., CFA
Portfolio Manager
John Hancock Asset Management
What factors drove the stock market higher during the six months ended January 31, 2018?
Improved U.S. and global economic growth helped corporate earnings, which provided a tailwind for stocks. In the United States, investors welcomed reports that the economy grew at a 3% or slightly higher annualized rate in the second and third quarters of 2017, a pickup over earlier readings. Economic growth in foreign developed markets, notably in Europe, and in emerging markets also accelerated at a faster-than-expected pace. Given this improving backdrop, the U.S. Federal Reserve again edged its short-term interest-rate target higher and started to scale back on its bond buying.
Anticipation and then the passage in December of a major overhaul to the U.S. tax code also helped fuel stock market gains. The new legislation significantly lowered corporate tax rates, bolstering earnings growth expectations. Added tailwinds came from higher energy prices, with oil topping $60 per barrel, recovery in the U.S. housing market, and rising consumer and business confidence. The U.S. stock market set new records, extending its nearly nine-year rally; however, just after period end, market volatility increased significantly.
Which sectors were market leaders?
More economically sensitive sectors were the biggest winners by far. Within the fund's benchmark, the broad-based Russell 3000 Index, information technology posted the strongest advance, helped by secular trends, including the growth of cloud computing and more people using mobile devices. Consumer discretionary stocks benefited from rising consumer confidence, wage growth, the housing recovery, and expectations that tax reform would lead to more consumer spending. Financials received a boost from higher short-term interest rates and accelerating economic growth. Industrials rose on expectations of more infrastructure and business spending. By contrast, more defensive, dividend-paying sectors, including utilities, real estate, telecommunication services, and consumer staples, were laggards.
Given this environment, how did the fund perform?
The fund's Class A shares returned 16.38% (excluding sales charges), which beat the 14.89% advance of the benchmark. Security selection in a few sectors was the key driver of outperformance, as we remained focused on financially sound companies with competitive advantages, the ability to generate substantial cash flow over sustained periods, and attractive stock prices relative to our estimates of intrinsic value. Stock picks in the consumer discretionary sector, which represented a sizable overweight and 24.4% of the fund's net assets, gave the biggest boost by far versus the index. Positioning in financials, consumer staples, and real estate, along with a lack of exposure to utilities, further aided the fund's relative result.
Which consumer discretionary stocks had the biggest impact?
The fund picked up the most ground from having a sizable overweight in e-commerce giant Amazon.com, Inc., the largest position at period end. Amazon's shares soared, helped by the company's highly profitable cloud computing business, the expansion of its e-commerce operation worldwide, and one of its strongest holiday sales seasons. Amazon's acquisition this past August of natural foods grocer Whole Foods Market, Inc., which the fund did not hold, further bolstered investor expectations, as the deal enabled Amazon to expand its presence in the grocery segment and gain a large physical presence.
Another notable contributor was sports and recreational vehicle company Polaris Industries, Inc. Its stock rallied as the company delivered improved results from turnaround efforts, including better-than-expected order growth for its 2018 model-year products and third-quarter earnings that beat
TOP 10 HOLDINGS AS OF 1/31/18 (%)
Amazon.com, Inc. | 7.9 |
Apple, Inc. | 5.9 |
Polaris Industries, Inc. | 4.9 |
Bank of America Corp. | 4.8 |
Citigroup, Inc. | 4.6 |
General Electric Company | 4.5 |
Affiliated Managers Group, Inc. | 4.4 |
The Goldman Sachs Group, Inc. | 4.3 |
Alphabet, Inc., Class A | 4.0 |
Morgan Stanley | 3.6 |
TOTAL | 48.9 |
As a percentage of net assets. | |
Cash and cash equivalents are not included. |
Were there strong contributors elsewhere?
Yes, in the information technology sector, an overweight in social messaging company Twitter, Inc. had a positive impact. Twitter, which has been in turnaround mode for some time, benefited from an increase in the number of daily active users, cost cutting, and its forecast that it would turn a profit for the fourth quarter. Elsewhere, an investment in diversified financials company Bank of America Corp. gained due to higher interest rates, an improving economy, cost management, and expectations of lower tax rates. Both of these top contributors were overweight positions.
Which sectors and stocks detracted?
Security selection in the industrials and healthcare sectors hampered performance versus the benchmark. A small cash position was an added hindrance in a strong up market. Our biggest individual detractor was diversified industrials conglomerate General Electric Company. A 50% dividend cut, repeatedly disappointing earnings results, and late-period accounting concerns caused the stock to decline, despite ongoing turnaround efforts that include cost cutting and new leadership. In healthcare, shares of Ireland-based pharmaceuticals company Allergan PLC, which is known for its Botox antiwrinkle treatment, fell because of concern around the looming patent expiration for its number two product, Restasis dry-eye drops. Outside of these sectors, disappointments included energy infrastructure company Kinder Morgan, Inc. Energy prices rose during the past six months, but remained well below historical averages, dampening demand for the company's services and undermining investor sentiment.
Were there other notable disappointments?
Some stocks that were good-sized positions and overweights hurt relative performance because their returns lagged that of the index. An example is premium mattress company Tempur Sealy International, Inc., which was held back by a third-quarter revenue shortfall that it attributed to weaker-than-expected North American sales in the wake of hurricane-related disruptions in Texas
and Florida, two of its largest markets. In the financials sector, shares of Affiliated Managers Group, Inc. disappointed. This company has ownership stakes in a number of boutique investment management firms, including ones that specialize in alternative strategies. Although the company reported strong earnings results for the third quarter, revenues missed expectations, hindering the stock's performance.
How is the fund currently positioned?
The fund continued to have an economically sensitive or cyclical bias at period end, with sizable overweights in the consumer discretionary and financials sectors, and a large stake, albeit lower than that of the benchmark, in information technology. Over the period, bottom-up security selection led us to add to our consumer discretionary and industrials weightings. At the same time, we trimmed our stakes in consumer staples and healthcare, sectors that tend to get less of a boost from an economic recovery.
MANAGED BY
Emory W. (Sandy) Sanders, Jr., CFA On the fund since 2011 Investing since 1997 | |
Jonathan White, CFA On the fund since 2015 Investing since 1997 |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | Since inception1 | 6-month | 5-year | Since inception1 | ||
Class A | 24.34 | 14.37 | 13.54 | 10.56 | 95.70 | 133.34 | |
Class C | 28.94 | 14.97 | 13.99 | 14.89 | 100.90 | 139.54 | |
Class I2 | 31.19 | 15.93 | 14.84 | 16.50 | 109.44 | 151.64 | |
Class R22,3 | 31.01 | 15.64 | 14.49 | 16.38 | 106.81 | 146.58 | |
Class R42,3 | 31.13 | 15.71 | 14.53 | 16.43 | 107.38 | 147.26 | |
Class R62,3 | 31.34 | 15.81 | 14.61 | 16.57 | 108.36 | 148.43 | |
Index† | 25.16 | 15.53 | 13.72 | 14.89 | 105.83 | 135.80 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, and Class R6 shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectus for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until November 30, 2018 and are subject to change. Had the contractual fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | ||
Gross (%) | 1.35 | 2.05 | 1.04 | 1.45 | 1.30 | 0.95 | |
Net (%) | 1.35 | 2.05 | 1.04 | 1.45 | 1.20 | 0.95 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the Russell 3000 Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Fundamental All Cap Core Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Russell 3000 Index.
The 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.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | From 6-1-11. |
2 | For certain types of investors as described in the fund's prospectus. |
3 | Class C shares were first offered on 6-27-14; Class R2, Class R4, and Class R6 shares were first offered on 3-27-15. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
4 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,163.80 | $6.98 | 1.28% |
Hypothetical example for comparison purposes | 1,000.00 | 1,018.80 | 6.51 | 1.28% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,158.90 | 10.77 | 1.98% |
Hypothetical example for comparison purposes | 1,000.00 | 1,015.20 | 10.06 | 1.98% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,165.00 | 5.35 | 0.98% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.30 | 4.99 | 0.98% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,163.80 | 6.22 | 1.14% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.50 | 5.80 | 1.14% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,164.30 | 6.06 | 1.11% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.60 | 5.65 | 1.11% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,165.70 | 4.75 | 0.87% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.80 | 4.43 | 0.87% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Shares | Value | ||||
Common stocks 94.5% | $91,118,315 | ||||
(Cost $71,144,867) | |||||
Consumer discretionary 24.4% | 23,546,969 | ||||
Household durables 6.2% | |||||
Lennar Corp., A Shares | 35,101 | 2,199,429 | |||
Lennar Corp., B Shares | 687 | 34,790 | |||
NVR, Inc. (A) | 259 | 823,146 | |||
Tempur Sealy International, Inc. (A) | 49,444 | 2,948,840 | |||
Internet and direct marketing retail 7.9% | |||||
Amazon.com, Inc. (A) | 5,272 | 7,649,092 | |||
Leisure products 4.9% | |||||
Polaris Industries, Inc. | 41,710 | 4,713,647 | |||
Media 3.0% | |||||
Liberty Media Corp.-Liberty Formula One, Series C (A) | 75,765 | 2,855,583 | |||
Specialty retail 2.4% | |||||
CarMax, Inc. (A) | 14,758 | 1,053,278 | |||
Group 1 Automotive, Inc. | 16,178 | 1,269,164 | |||
Consumer staples 1.8% | 1,721,643 | ||||
Beverages 1.8% | |||||
Anheuser-Busch InBev SA, ADR | 7,797 | 884,804 | |||
Diageo PLC, ADR | 5,813 | 836,839 | |||
Energy 5.3% | 5,111,819 | ||||
Energy equipment and services 2.4% | |||||
National Oilwell Varco, Inc. | 35,010 | 1,284,167 | |||
Schlumberger, Ltd. | 14,500 | 1,066,910 | |||
Oil, gas and consumable fuels 2.9% | |||||
Cheniere Energy, Inc. (A) | 28,214 | 1,595,784 | |||
Kinder Morgan, Inc. | 12,058 | 216,803 | |||
Suncor Energy, Inc. | 26,156 | 948,155 | |||
Financials 24.8% | 23,950,991 | ||||
Banks 9.4% | |||||
Bank of America Corp. | 146,127 | 4,676,064 | |||
Citigroup, Inc. | 56,001 | 4,394,958 | |||
Capital markets 13.8% | |||||
Affiliated Managers Group, Inc. | 21,445 | 4,281,065 | |||
FactSet Research Systems, Inc. | 2,334 | 468,410 | |||
Greenhill & Company, Inc. | 50,695 | 940,392 | |||
Morgan Stanley | 60,730 | 3,434,282 | |||
The Goldman Sachs Group, Inc. | 15,625 | 4,185,781 | |||
Consumer finance 1.6% | |||||
American Express Company | 10,721 | 1,065,667 |
12 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Consumer finance (continued) | |||||
Synchrony Financial | 12,711 | $504,372 | |||
Health care 4.0% | 3,870,080 | ||||
Biotechnology 2.6% | |||||
Amgen, Inc. | 13,494 | 2,510,559 | |||
Pharmaceuticals 1.4% | |||||
Allergan PLC | 7,542 | 1,359,521 | |||
Industrials 9.9% | 9,516,487 | ||||
Electrical equipment 1.9% | |||||
Regal Beloit Corp. | 9,746 | 759,213 | |||
Sensata Technologies Holding NV (A) | 18,076 | 1,016,776 | |||
Industrial conglomerates 4.5% | |||||
General Electric Company | 268,986 | 4,349,504 | |||
Machinery 0.7% | |||||
The Manitowoc Company, Inc. (A) | 6,316 | 253,145 | |||
Welbilt, Inc. (A) | 19,572 | 436,456 | |||
Professional services 2.2% | |||||
IHS Markit, Ltd. (A) | 44,946 | 2,145,273 | |||
Trading companies and distributors 0.6% | |||||
United Rentals, Inc. (A) | 1,833 | 331,975 | |||
WESCO International, Inc. (A) | 3,289 | 224,145 | |||
Information technology 20.6% | 19,838,716 | ||||
Internet software and services 12.2% | |||||
Alphabet, Inc., Class A (A) | 3,254 | 3,846,944 | |||
Cargurus, Inc. (A) | 87,328 | 2,925,488 | |||
Facebook, Inc., Class A (A) | 11,983 | 2,239,503 | |||
Twitter, Inc. (A) | 104,225 | 2,690,047 | |||
Software 2.5% | |||||
Workday, Inc., Class A (A) | 20,269 | 2,430,050 | |||
Technology hardware, storage and peripherals 5.9% | |||||
Apple, Inc. | 34,084 | 5,706,684 | |||
Materials 1.6% | 1,497,467 | ||||
Paper and forest products 1.6% | |||||
Louisiana-Pacific Corp. (A) | 50,573 | 1,497,467 | |||
Real estate 2.1% | 2,064,143 | ||||
Equity real estate investment trusts 1.6% | |||||
American Tower Corp. | 10,826 | 1,599,000 | |||
Real estate management and development 0.5% | |||||
Five Point Holdings LLC, Class A (A) | 33,706 | 465,143 | |||
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | 13 |
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 5.1% | $4,955,539 | ||||
(Cost $4,955,539) | |||||
U.S. Government Agency 3.0% | 2,924,000 | ||||
Federal Agricultural Mortgage Corp. Discount Note | 1.200 | 02-01-18 | 276,000 | 276,000 | |
Federal Home Loan Bank Discount Note | 0.900 | 02-01-18 | 379,000 | 379,000 | |
Federal Home Loan Bank Discount Note | 1.200 | 02-01-18 | 2,269,000 | 2,269,000 |
Yield (%) | Shares | Value | |||
Money market funds 0.1% | 100,539 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1.2490(B) | 100,539 | 100,539 |
Par value^ | Value | ||||
Repurchase agreement 2.0% | 1,931,000 | ||||
Barclays Tri-Party Repurchase Agreement dated 1-31-18 at 1.350% to be repurchased at $1,931,072 on 2-1-18, collateralized by $2,140,100 U.S. Treasury Bonds, 2.500% due 2-15-46 (valued at $1,969,721, including interest) | 1,931,000 | 1,931,000 |
Total investments (Cost $76,100,406) 99.6% | $96,073,854 | ||||
Other assets and liabilities, net 0.4% | 342,866 | ||||
Total net assets 100.0% | $96,416,720 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
(B) | The rate shown is the annualized seven-day yield as of 1-31-18. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
14 | JOHN HANCOCK FUNDAMENTAL ALL CAP CORE FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Investments, at value (Cost $76,100,406) | $96,073,854 | |||||||||||||||||||||||||||||
Foreign currency, at value (Cost $1,746) | 1,803 | |||||||||||||||||||||||||||||
Receivable for fund shares sold | 375,674 | |||||||||||||||||||||||||||||
Dividends and interest receivable | 33,569 | |||||||||||||||||||||||||||||
Receivable due from advisor | 112 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 34,192 | |||||||||||||||||||||||||||||
Total assets | 96,519,204 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Payable for fund shares repurchased | 46,465 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 4,005 | |||||||||||||||||||||||||||||
Transfer agent fees | 8,246 | |||||||||||||||||||||||||||||
Distribution and service fees | 76 | |||||||||||||||||||||||||||||
Trustees' fees | 389 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 43,303 | |||||||||||||||||||||||||||||
Total liabilities | 102,484 | |||||||||||||||||||||||||||||
Net assets | $96,416,720 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $75,242,136 | |||||||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | (99,835 | ) | ||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | 1,299,814 | |||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 19,974,605 | |||||||||||||||||||||||||||||
Net assets | $96,416,720 | |||||||||||||||||||||||||||||
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 ($49,742,281 ÷ 2,524,242 shares)1 | $19.71 | |||||||||||||||||||||||||||||
Class C ($6,398,012 ÷ 331,463 shares)1 | $19.30 | |||||||||||||||||||||||||||||
Class I ($29,666,762 ÷ 1,489,680 shares) | $19.91 | |||||||||||||||||||||||||||||
Class R2 ($274,673 ÷ 13,830 shares) | $19.86 | |||||||||||||||||||||||||||||
Class R4 ($1,022,244 ÷ 51,415 shares) | $19.88 | |||||||||||||||||||||||||||||
Class R6 ($9,312,748 ÷ 467,423 shares) | $19.92 | |||||||||||||||||||||||||||||
Maximum offering price per share | ||||||||||||||||||||||||||||||
Class A (net asset value per share ÷ 95%)2 | $20.75 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Dividends | $394,070 | |||||||||||||||||||||||
Interest | 20,838 | |||||||||||||||||||||||
Less foreign taxes withheld | (3,799 | ) | ||||||||||||||||||||||
Total investment income | 411,109 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 281,681 | |||||||||||||||||||||||
Distribution and service fees | 92,102 | |||||||||||||||||||||||
Accounting and legal services fees | 6,913 | |||||||||||||||||||||||
Transfer agent fees | 41,358 | |||||||||||||||||||||||
Trustees' fees | 764 | |||||||||||||||||||||||
State registration fees | 50,121 | |||||||||||||||||||||||
Printing and postage | 13,352 | |||||||||||||||||||||||
Professional fees | 25,089 | |||||||||||||||||||||||
Custodian fees | 5,210 | |||||||||||||||||||||||
Other | 7,237 | |||||||||||||||||||||||
Total expenses | 523,827 | |||||||||||||||||||||||
Less expense reductions | (29,401 | ) | ||||||||||||||||||||||
Net expenses | 494,426 | |||||||||||||||||||||||
Net investment loss | (83,317 | ) | ||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Investments and foreign currency transactions | 2,364,675 | |||||||||||||||||||||||
2,364,675 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Investments and translation of assets and liabilities in foreign currencies | 10,409,380 | |||||||||||||||||||||||
10,409,380 | ||||||||||||||||||||||||
Net realized and unrealized gain | 12,774,055 | |||||||||||||||||||||||
Increase in net assets from operations | $12,690,738 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
From operations | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | ($83,317 | ) | $684,078 | |||||||||||||||||||||||||||||||||||||||||||||
Net realized gain | 2,364,675 | 26,145,806 | ||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 10,409,380 | (4,942,934 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 12,690,738 | 21,886,950 | ||||||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | — | (44,099 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Class I | (46,491 | ) | (34,466 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class R2 | (52 | ) | (333 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class R4 | (1,224 | ) | (424 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class R6 | (19,235 | ) | (17,425 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Class NAV1 | — | (549,199 | ) | |||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A | (2,576,105 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class C | (320,001 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class I | (1,684,737 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class R2 | (4,197 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class R4 | (55,469 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Class R6 | (498,178 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (5,205,689 | ) | (645,946 | ) | ||||||||||||||||||||||||||||||||||||||||||||
From fund share transactions | 19,065,028 | (110,697,141 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Total increase (decrease) | 26,550,077 | (89,456,137 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 69,866,643 | 159,322,780 | ||||||||||||||||||||||||||||||||||||||||||||||
End of period | $96,416,720 | $69,866,643 | ||||||||||||||||||||||||||||||||||||||||||||||
Undistributed (accumulated distributions in excess of) net investment income | ($99,835 | ) | $53,109 |
1 | Class NAV shares were liquidated on 3-3-17. |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $17.95 | $14.97 | $16.16 | $14.33 | $12.88 | $9.96 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)2 | (0.03 | ) | 0.03 | — | 3 | (0.04 | ) | — | 3 | 0.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.93 | 2.97 | (0.40 | ) | 2.27 | 2.12 | 3.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 2.90 | 3.00 | (0.40 | ) | 2.23 | 2.12 | 3.22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | (0.02 | ) | — | — | (0.01 | ) | (0.06 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.14 | ) | — | (0.79 | ) | (0.40 | ) | (0.66 | ) | (0.24 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.14 | ) | (0.02 | ) | (0.79 | ) | (0.40 | ) | (0.67 | ) | (0.30 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $19.71 | $17.95 | $14.97 | $16.16 | $14.33 | $12.88 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4,5 | 16.38 | 6 | 20.07 | (2.43 | ) | 15.77 | 16.62 | 32.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $50 | $38 | $30 | $23 | $14 | $9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.34 | 7 | 1.35 | 1.28 | 1.30 | 1.78 | 2.78 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.28 | 7 | 1.26 | 1.27 | 1.29 | 1.30 | 1.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.29 | ) 7 | 0.18 | (0.03 | ) | (0.29 | ) | (0.02 | ) | 0.51 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 16 | 52 | 40 | 42 | 44 | 59 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. |
Class C Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $17.67 | $14.81 | $16.11 | $14.37 | $14.54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss3 | (0.09 | ) | (0.09 | ) | (0.11 | ) | (0.16 | ) | (0.02 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.86 | 2.95 | (0.40 | ) | 2.30 | (0.15 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 2.77 | 2.86 | (0.51 | ) | 2.14 | (0.17 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.14 | ) | — | (0.79 | ) | (0.40 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.14 | ) | — | (0.79 | ) | (0.40 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $19.30 | $17.67 | $14.81 | $16.11 | $14.37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4,5 | 15.89 | 6 | 19.31 | (3.14 | ) | 15.09 | (1.17 | ) 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $6 | $5 | $3 | $2 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 2.04 | 8 | 2.05 | 1.98 | 2.69 | 17.05 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.98 | 8 | 1.96 | 1.97 | 2.00 | 2.00 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment loss | (0.99 | ) 8 | (0.54 | ) | (0.74 | ) | (1.06 | ) | (1.39 | ) 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 16 | 52 | 40 | 42 | 44 | 9 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class C shares is 6-27-14. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The portfolio turnover is shown for the period from 8-1-13 to 7-31-14. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $18.13 | $15.12 | $16.27 | $14.39 | $12.93 | $9.99 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | — | 3 | 0.07 | 0.04 | 0.01 | 0.05 | 0.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.95 | 3.01 | (0.39 | ) | 2.29 | 2.12 | 3.19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 2.95 | 3.08 | (0.35 | ) | 2.30 | 2.17 | 3.28 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.07 | ) | (0.01 | ) | (0.02 | ) | (0.05 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.14 | ) | — | (0.79 | ) | (0.40 | ) | (0.66 | ) | (0.24 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.17 | ) | (0.07 | ) | (0.80 | ) | (0.42 | ) | (0.71 | ) | (0.34 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $19.91 | $18.13 | $15.12 | $16.27 | $14.39 | $12.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 16.50 | 5 | 20.40 | (2.08 | ) | 16.20 | 17.01 | 34.48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $30 | $21 | $8 | $11 | $6 | $3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.04 | 6 | 1.04 | 0.97 | 1.05 | 1.76 | 3.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.98 | 6 | 0.95 | 0.95 | 0.94 | 0.94 | 0.91 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | — | 6,7 | 0.42 | 0.27 | 0.07 | 0.37 | 0.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 16 | 52 | 40 | 42 | 44 | 59 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than 0.005%. |
Class R2 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $18.09 | $15.09 | $16.26 | $15.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)3 | (0.02 | ) | 0.06 | 0.02 | (0.01 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.94 | 2.99 | (0.40 | ) | 1.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 2.92 | 3.05 | (0.38 | ) | 1.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.01 | ) | (0.05 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.14 | ) | — | (0.79 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.15 | ) | (0.05 | ) | (0.79 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $19.86 | $18.09 | $15.09 | $16.26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 16.38 | 5 | 20.25 | (2.28 | ) | 7.54 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 6 | — | 6 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.20 | 7 | 1.20 | 1.12 | 1.10 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.14 | 7 | 1.11 | 1.11 | 1.10 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.22 | ) 7 | 0.35 | 0.13 | (0.19 | ) 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 16 | 52 | 40 | 42 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R2 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class R4 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $18.11 | $15.10 | $16.27 | $15.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)3 | (0.02 | ) | 0.07 | 0.03 | (0.01 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.95 | 3.00 | (0.40 | ) | 1.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 2.93 | 3.07 | (0.37 | ) | 1.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.02 | ) | (0.06 | ) | (0.01 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.14 | ) | — | (0.79 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.16 | ) | (0.06 | ) | (0.80 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $19.88 | $18.11 | $15.10 | $16.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 16.43 | 5 | 20.42 | (2.24 | ) | 7.61 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $1 | — | 6 | — | 6 | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.28 | 7 | 1.19 | 1.12 | 1.10 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.11 | 7 | 1.01 | 1.01 | 1.00 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.20 | ) 7 | 0.45 | 0.23 | (0.09 | ) 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 16 | 52 | 40 | 42 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R4 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class R6 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $18.14 | $15.12 | $16.28 | $15.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.01 | 0.09 | 0.07 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.95 | 3.01 | (0.42 | ) | 1.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 2.96 | 3.10 | (0.35 | ) | 1.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.04 | ) | (0.08 | ) | (0.02 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.14 | ) | — | (0.79 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.18 | ) | (0.08 | ) | (0.81 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $19.92 | $18.14 | $15.12 | $16.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)5 | 16.57 | 6 | 20.59 | (2.10 | ) | 7.67 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $9 | $6 | $3 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.95 | 8 | 0.95 | 0.86 | 0.85 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.87 | 8 | 0.85 | 0.84 | 0.83 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.13 | 8 | 0.52 | 0.49 | 0.01 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 16 | 52 | 40 | 42 | 9 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R6 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Note 1 — Organization
John Hancock Fundamental All Cap Core Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statements of Assets and Liabilities. Class A and Class C are open to all investors. Class I shares are offered to institutions and certain investors. Class R2 and Class R4 shares are available only to certain retirement plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments in open-end mutual funds are valued at their respective NAVs each business day. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes
securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
As of January 31, 2018, all investments are categorized as Level 1 under the hierarchy described above, except for U.S. Government Agency discount notes and repurchase agreements, which are categorized as Level 2.
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretions of premiums/discounts on debt securities. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay
the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, a fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $1,268.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends and capital gain 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 in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sale loss deferrals, partnerships, and in-kind transactions.
Note 3 — Guarantees and indemnifications
Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. 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. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent,on an annual basis,to the sum of: a) 0.675% of the first $2.5 billion of the fund's aggregate average daily net assets together with the net assets of Fundamental All Cap Core Trust, a series of John Hancock Variable Insurance Trust (combined aggregate average daily net assets); and b) 0.650% of the combined aggregate average daily net assets in excess of $2.5 billion.The Advisor has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
The Advisor has voluntarily agreed to reduce its management fee, or if necessary make payment to the fund, in an amount equal to the amount by which the expenses of the fund exceed 0.20% of the average net assets of the fund. For purposes of this agreement, "expenses of the fund" means all the expenses of the fund, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business, (e) management fees, (f) class-specific expenses, (g) underlying fund expenses (acquired fund fees), and (h) short dividend expense. This voluntary expense reimbursement will continue in effect until terminated at any time by the Advisor on notice to the fund.
Prior to December 1, 2017, the Advisor had contractually agreed to waive and/or reimburse all class-specific expenses for Class R6 shares of the fund to the extent they exceeded 0.00% of average net assets attributable to the class.
The expense reductions described above amounted to the following for the six months ended January 31, 2018:
Class | Expense reduction | Class | Expense reduction | |
Class A | $14,762 | Class R4 | $251 | |
Class C | 1,841 | Class R6 | 2,960 | |
Class I | 9,174 | Total | $29,043 | |
Class R2 | 55 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursement described above, incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 0.61% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class C, Class R2 and Class R4 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for Class R2 and Class
R4 shares, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee | Service fee | Class | Rule 12b-1 fee | Service fee | |
Class A | 0.30% | — | Class R2 | 0.25% | 0.25% | |
Class C | 1.00% | — | Class R4 | 0.25% | 0.10% |
The fund's Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on November 30, 2018, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $358 for Class R4 shares for the six months ended January 31, 2018.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $40,050 for the six months ended January 31, 2018. Of this amount, $7,405 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $36,093 was paid as sales commissions to broker-dealers and $1,552 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, CDSCs received by the Distributor amounted to $267 for Class C shares.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $64,140 | $23,270 |
Class C | 26,582 | 2,894 |
Class I | — | 14,658 |
Class R2 | 190 | 9 |
Class R4 | 1,190 | 44 |
Class R6 | — | 483 |
Total | $92,102 | $41,358 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund(s), along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit
facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or lender | Weighted average loan balance | Days outstanding | Weighted average interest rate | Interest income |
Lender | $1,023,839 | 1 | 1.205% | $34 |
Note 5 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 475,341 | $9,168,617 | 1,014,321 | $16,662,793 | ||||||||||||||||||||||
Distributions reinvested | 135,097 | 2,572,241 | 2,782 | 44,038 | ||||||||||||||||||||||
Repurchased | (204,097 | ) | (3,889,309 | ) | (907,934 | ) | (14,640,469 | ) | ||||||||||||||||||
Net increase | 406,341 | $7,851,549 | 109,169 | $2,066,362 | ||||||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 71,608 | $1,351,070 | 140,596 | $2,294,877 | ||||||||||||||||||||||
Distributions reinvested | 17,149 | 320,001 | — | — | ||||||||||||||||||||||
Repurchased | (21,347 | ) | (401,467 | ) | (56,427 | ) | (894,645 | ) | ||||||||||||||||||
Net increase | 67,410 | $1,269,604 | 84,169 | $1,400,232 | ||||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 666,103 | $12,781,247 | 1,148,414 | $19,373,564 | ||||||||||||||||||||||
Distributions reinvested | 90,027 | 1,731,228 | 2,160 | 34,466 | ||||||||||||||||||||||
Repurchased | (398,575 | ) | (7,788,560 | ) | (564,647 | ) | (9,019,810 | ) | ||||||||||||||||||
Net increase | 357,555 | $6,723,915 | 585,927 | $10,388,220 | ||||||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Sold | 11,166 | $215,564 | 55 | $947 | ||||||||||||||||||||||
Distributions reinvested | 65 | 1,246 | — | — | ||||||||||||||||||||||
Repurchased | (4,139 | ) | (83,108 | ) | (34 | ) | (573 | ) | ||||||||||||||||||
Net increase | 7,092 | $133,702 | 21 | $374 | ||||||||||||||||||||||
Class R4 shares | ||||||||||||||||||||||||||
Sold | 47,055 | $892,203 | — | — | ||||||||||||||||||||||
Distributions reinvested | 2,801 | 53,800 | — | — | ||||||||||||||||||||||
Repurchased | (5,055 | ) | (101,141 | ) | — | — | ||||||||||||||||||||
Net increase | 44,801 | $844,862 | — | — | ||||||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 126,028 | $2,492,319 | 143,355 | $2,463,700 | ||||||||||||||||||||||
Distributions reinvested | 26,893 | 517,413 | 1,092 | 17,425 | ||||||||||||||||||||||
Repurchased | (38,609 | ) | (768,336 | ) | (6,384 | ) | (102,619 | ) | ||||||||||||||||||
Net increase | 114,312 | $2,241,396 | 138,063 | $2,378,506 | ||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | — | — | 19,943 | $300,533 | ||||||||||||||||||||||
Distributions reinvested | — | — | 34,411 | 549,199 | ||||||||||||||||||||||
Repurchased | — | — | (7,648,620 | ) | (127,780,567 | ) | ||||||||||||||||||||
Net increase (decrease) | — | — | (7,594,266 | ) | ($126,930,835 | ) | ||||||||||||||||||||
Total net increase (decrease) | 997,511 | $19,065,028 | (6,676,917 | ) | ($110,697,141 | ) |
There were no fund share transactions for Class R4 for the year ended July 31, 2017.
Class NAV liquidated on March 3, 2017.
Affiliates of the fund owned 18%, 5%, and 51% of shares of Class R2, Class R4, and Class R6, respectively, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
On February 28, 2017, there was a redemption in kind from Class NAV of $87,117,054, which represented approximately 54% of the fund on that date. For purposes of US GAAP, this transaction was treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the transfer. For tax purposes, no gains or losses were recognized.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments, amounted to $23,846,733 and $12,348,456, respectively, for the six months ended January 31, 2018.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor John Hancock Asset Management a division of Manulife Asset Management (US) LLC 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 |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
John Hancock family of funds
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A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
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John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Fundamental All Cap Core Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431078 | 376SA 1/18 3/18 |
John Hancock
Fundamental Large Cap Value Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In the weeks following the close of the reporting period, markets around the world experienced a meaningful rise in volatility. Stocks declined as investors reacted to higher bond yields and the prospect of rising inflation, even if that inflation was up from historically low levels. While some in the asset management community believe the sell-off will be temporary, it's likely that the era of extremely low volatility is behind us for the time being.
Ultimately, asset prices are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close: Unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
The recently passed tax reform legislation appears poised to inject substantial stimulus into U.S. businesses at the same time that industry regulations are being rolled back across large swaths of the economy, including the systemically important financials sector. One moderating factor is the U.S. Federal Reserve's continued tightening of monetary policy. In mid-December, the federal funds rate was lifted by a quarter of a percentage point, the fifth such increase in the current cycle. While rising interest rates alone may not cause the economy to pull back, markets will be closely attuned to any suggestion that policymakers may quicken the pace of interest-rate increases in the year ahead.
Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence that accompanies investing in any market cycle.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Fundamental Large Cap Value Fund
INVESTMENT OBJECTIVE
The fund seeks long-term capital appreciation.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The 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 expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
U.S. stocks benefited from economic recovery and tax reform
Stocks gained as improved economic growth and a late-period major overhaul to the U.S. tax code bolstered corporate earnings growth prospects.
Growth stocks beat value across all market caps
Investors favored sectors that seemed to have the best earnings growth prospects, with the biggest advance coming from information technology stocks.
Financials and consumer discretionary helped fuel performance
A sizable overweight in the financials sector and security selection in the consumer discretionary sector helped performance relative to the Russell 1000 Value Index.
SECTOR COMPOSITION AS OF 1/31/18 (%)
A note about risks
Stock prices can be volatile and are affected by both general economic conditions and the financial prospects of individual companies. Large company stocks could fall out of favor. Value stocks may perform differently from the market as a whole, and following a value-oriented investment strategy may cause a fund to, at times, underperform equity funds that use other investment strategies. A fund concentrated in one sector or that holds a limited number of securities may fluctuate more than a fund that invests in a wider variety of sectors. Foreign investing has additional risks, such as currency and market volatility and political and social instability. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Please see the fund's prospectus for additional risks.
An interview with Portfolio Manager Emory W. (Sandy) Sanders, Jr., CFA, John Hancock Asset Management a division of Manulife Asset Management (US) LLC
Emory W. (Sandy)Sanders, Jr., CFA
Portfolio Manager
John Hancock Asset Management
What factors drove the stock market higher during the six months ended January 31, 2018?
Improved U.S. and global economic growth bolstered corporate earnings, providing a tailwind for stocks. In the United States, investors welcomed reports that the economy grew at a 3% or slightly higher annualized rate in the second and third quarters of 2017, a pickup over earlier readings. Economic growth in foreign developed markets, notably in Europe, and in emerging markets also accelerated. Given this improving backdrop, the U.S. Federal Reserve decided to edge its short-term interest-rate target higher in December, its third hike in 2017, and also scaled back its bond buying. The European Central Bank kept its interest rates near historic lows, but announced plans to slow its bond buying in 2018.
Anticipation and then the passage in December of a major overhaul to the U.S. tax code also aided stock returns. The legislation significantly lowered corporate tax rates, fueling expectations that companies would boost their earnings forecast. Added tailwinds came from higher energy prices, recovery in the U.S. housing market, and rising consumer and business confidence. All of these factors helped push the U.S. stock market to new record highs, extending its nearly nine-year rally. However, after the end of the period, market volatility increased.
How did large-cap value stocks fare in the context of the broader market?
Large-cap stocks generally outperformed small caps by a sizable margin. However, within the large-cap category, value stocks lagged growth stocks as investors sought companies that could compound earnings at high rates. Within the fund's benchmark, the Russell 1000 Value Index, the top performer was the information technology sector, which was helped by secular trends, including the growth of cloud computing and more people using mobile devices. Material stocks also saw strong gains, thanks to expectations that improved global economic growth would bolster demand and help commodity prices. The financials sector was another standout, buoyed by higher short-term interest rates, the economic recovery, and a more favorable regulatory backdrop. By contrast, more defensive, dividend-paying sectors, including utilities, real estate, telecommunication services, and consumer staples, were laggards.
How did the fund perform during the past six months?
The fund's Class A shares gained 11.55% (excluding sales charges), which was in line with the 11.33% return of the Russell 1000 Value Index. We maintained our long-term, bottom-up focus on financially sound companies with competitive advantages, the ability to generate substantial cash flow over sustained periods, and attractive stock prices relative to our estimates of intrinsic value. Positioning in financials, a sizable overweight, and stock picks in consumer discretionary gave the biggest boost to relative performance. The fund's lack of exposure to the weak-performing utilities and real estate sectors also helped its result relative to the benchmark.
Which stocks stood out as top contributors to relative performance?
The fund picked up the most ground from having an overweight in Bank of America Corp., its largest holding. Bank of America's shares rose sharply over the past six months, helped by higher interest rates, an improving economy, cost management, and share buybacks. Investors also expected lower tax rates to boost the bank's earnings going forward. Another winner was Synchrony Financial, the leading provider of private label credit cards in the United States. Increased consumer spending, a better-than-expected credit backdrop, expectations around tax reform, and higher interest rates gave the stock a sizable boost.
Were there standouts from other sectors?
Yes, in industrials, investments in both United Rentals, Inc. and Union Pacific Corp. had a positive
TOP 10 HOLDINGS AS OF 1/31/18 (%)
Bank of America Corp. | 5.8 |
Citigroup, Inc. | 5.2 |
General Electric Company | 5.2 |
JPMorgan Chase & Co. | 5.2 |
Apple, Inc. | 4.7 |
The Goldman Sachs Group, Inc. | 4.6 |
Morgan Stanley | 4.1 |
Exxon Mobil Corp. | 2.9 |
Union Pacific Corp. | 2.8 |
Microsoft Corp. | 2.7 |
TOTAL | 43.2 |
As a percentage of net assets. | |
Cash and cash equivalents are not included. |
In the information technology sector, exposure to Microsoft Corp. proved rewarding, as the software giant benefited from continued expansion of its cloud computing offerings to companies that were already using its installed software. Neither Microsoft nor United Rentals was in the index, further adding to the relative benefit.
Where did the fund lose ground this period?
Security selection in the healthcare, industrials, and energy sectors detracted versus the benchmark. The fund's biggest individual disappointment was diversified industrials conglomerate General Electric Company. A 50% dividend cut, disappointing earnings results, and late-period accounting concerns caused the stock to decline, despite the company's ongoing turnaround efforts, which have included cost cutting and new leadership.
Some of the biggest stock disappointments were in healthcare. An investment in Ireland-based pharmaceuticals company Allergan PLC, which is best known for its Botox antiwrinkle treatment, fell because of concern around the looming patent expiration for its number two product, Restasis dry-eye drops. Shares of Shire PLC, an Ireland-headquartered biopharmaceuticals company that focuses on developing treatments for rare diseases, declined due to slipping sales and increased competition in its hemophilia franchise as well as disappointing sales for its attention deficit disorder treatment, Adderall XR. An investment in Patterson Companies, Inc., a medical products company that supplies dentists and veterinarians, declined due to softening demand and increased competition in the dental side of the business.
Last, within consumer discretionary, an investment in U.K.-headquartered market research firm Nielsen Holdings PLC detracted from relative performance. The stock was pressured by slowing demand from a variety of end markets, including retailers looking to cut costs as e-commerce competition ramps up, advertisers who are moving more of their spending online, and consumer goods companies that are spending less to track the buying patterns of their customers.
How was the fund positioned at period end?
Our positioning is driven by bottom-up security selection and where we're finding the best opportunities that fit our investment criteria. The fund has maintained an economically sensitive bias, with increased exposure to financials, representing 37.6% of net assets at the end of the reporting period. The fund also had overweights in the information technology and industrials sectors, with a notable increase in industrials. During the period, we added a small position in materials, but reduced weightings in the consumer staples, energy, and healthcare sectors. The fund continued to have no exposure to utilities, real estate, and telecommunication services, sectors that tend to have less potential upside in an economic recovery.
MANAGED BY
Emory W. (Sandy) Sanders, Jr., CFA On the fund since 2011 Investing since 1997 | |
Nicholas P. Renart On the fund since 2015 Investing since 2005 |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | Since inception1 | 6-month | 5-year | Since inception1 | ||
Class A | 14.08 | 10.68 | 11.46 | 5.97 | 66.08 | 106.19 | |
Class C2 | 18.29 | 11.23 | 11.87 | 10.13 | 70.24 | 111.36 | |
Class I3 | 20.43 | 12.17 | 12.71 | 11.67 | 77.59 | 122.12 | |
Class R22,3 | 20.12 | 11.86 | 12.35 | 11.53 | 75.13 | 117.44 | |
Class R42,3 | 20.47 | 12.00 | 12.45 | 11.77 | 76.25 | 118.82 | |
Class R62,3 | 20.66 | 12.10 | 12.53 | 11.79 | 77.06 | 119.83 | |
Class NAV3,4 | 20.58 | 12.37 | 17.06 | 11.72 | 79.17 | 175.87 | |
Index† | 17.22 | 13.47 | 12.43 | 11.33 | 88.09 | 118.53 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R4, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. Net expenses reflect contractual expense limitations in effect until November 30, 2018. Had the fee waivers and expense limitations not been in place, gross expenses would apply. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R4 | Class R6 | Class NAV | |
Gross (%) | 1.11 | 1.81 | 0.80 | 1.21 | 1.06 | 0.71 | 0.69 |
Net (%) | 1.11 | 1.81 | 0.80 | 1.21 | 0.96 | 0.71 | 0.69 |
Please refer to the most recent prospectus and annual or semiannual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index is the Russell 1000 Value Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Fundamental Large Cap Value Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in the Russell 1000 Value Index.
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C2,5 | 6-1-11 | 21,136 | 21,136 | 21,853 |
Class I3 | 6-1-11 | 22,212 | 22,212 | 21,853 |
Class R22,3 | 6-1-11 | 21,744 | 21,744 | 21,853 |
Class R42,3 | 6-1-11 | 21,882 | 21,882 | 21,853 |
Class R62,3 | 6-1-11 | 21,983 | 21,983 | 21,853 |
Class NAV3,4 | 8-23-11 | 27,587 | 27,587 | 21,853 |
The 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 expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | From 6-1-11. |
2 | Class C shares were first offered on 6-27-14; Class R2, Class R4, and Class R6 shares were first offered on 3-27-15. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
3 | For certain types of investors as described in the fund's prospectuses. |
4 | From 8-23-11. |
5 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,115.50 | $5.87 | 1.10% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.70 | 5.60 | 1.10% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,111.30 | 9.58 | 1.80% |
Hypothetical example for comparison purposes | 1,000.00 | 1,016.10 | 9.15 | 1.80% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,116.70 | 4.27 | 0.80% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.20 | 4.08 | 0.80% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,115.30 | 6.02 | 1.13% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.50 | 5.75 | 1.13% | |
Class R4 | Actual expenses/actual returns | 1,000.00 | 1,117.70 | 4.59 | 0.86% |
Hypothetical example for comparison purposes | 1,000.00 | 1,020.90 | 4.38 | 0.86% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,117.90 | 3.74 | 0.70% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.70 | 3.57 | 0.70% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,117.20 | 3.68 | 0.69% |
Hypothetical example for comparison purposes | 1,000.00 | 1,021.70 | 3.52 | 0.69% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Shares | Value | ||||
Common stocks 98.3% | $811,215,474 | ||||
(Cost $638,713,787) | |||||
Consumer discretionary 8.1% | 67,129,564 | ||||
Household durables 3.6% | |||||
Lennar Corp., A Shares | 275,044 | 17,234,257 | |||
Lennar Corp., B Shares | 5,732 | 290,268 | |||
Tempur Sealy International, Inc. (A) | 208,893 | 12,458,379 | |||
Media 2.2% | |||||
Twenty-First Century Fox, Inc., Class A | 493,282 | 18,202,106 | |||
Specialty retail 2.3% | |||||
AutoZone, Inc. (A) | 12,773 | 9,776,965 | |||
Group 1 Automotive, Inc. | 116,859 | 9,167,589 | |||
Consumer staples 4.6% | 37,752,107 | ||||
Beverages 1.2% | |||||
Heineken Holding NV | 91,205 | 9,675,520 | |||
Food products 1.0% | |||||
Danone SA | 98,425 | 8,471,088 | |||
Tobacco 2.4% | |||||
Imperial Brands PLC | 193,472 | 7,962,037 | |||
Philip Morris International, Inc. | 108,584 | 11,643,462 | |||
Energy 8.8% | 72,424,602 | ||||
Energy equipment and services 2.3% | |||||
National Oilwell Varco, Inc. | 516,140 | 18,932,015 | |||
Oil, gas and consumable fuels 6.5% | |||||
Chevron Corp. | 138,512 | 17,362,479 | |||
Exxon Mobil Corp. | 277,652 | 24,239,020 | |||
Suncor Energy, Inc. | 328,030 | 11,891,088 | |||
Financials 37.6% | 310,668,274 | ||||
Banks 17.8% | |||||
Bank of America Corp. | 1,499,197 | 47,974,304 | |||
CIT Group, Inc. | 268,170 | 13,593,537 | |||
Citigroup, Inc. | 545,402 | 42,803,149 | |||
JPMorgan Chase & Co. | 368,749 | 42,653,197 | |||
Capital markets 12.1% | |||||
Affiliated Managers Group, Inc. | 101,479 | 20,258,253 | |||
Invesco, Ltd. | 232,940 | 8,416,122 | |||
Morgan Stanley | 592,540 | 33,508,137 | |||
The Goldman Sachs Group, Inc. | 140,354 | 37,599,433 | |||
Consumer finance 4.9% | |||||
American Express Company | 220,414 | 21,909,152 | |||
Synchrony Financial | 471,533 | 18,710,429 |
12 | JOHN HANCOCK Fundamental Large Cap Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Financials (continued) | |||||
Insurance 2.8% | |||||
American International Group, Inc. | 169,734 | $10,849,397 | |||
Prudential Financial, Inc. | 104,302 | 12,393,164 | |||
Health care 10.6% | 87,219,465 | ||||
Biotechnology 3.5% | |||||
Amgen, Inc. | 21,585 | 4,015,889 | |||
Gilead Sciences, Inc. | 130,174 | 10,908,581 | |||
Shire PLC, ADR | 96,069 | 13,453,503 | |||
Health care equipment and supplies 2.9% | |||||
Danaher Corp. | 86,818 | 8,792,927 | |||
Medtronic PLC | 179,989 | 15,459,255 | |||
Health care providers and services 0.7% | |||||
Patterson Companies, Inc. | 162,723 | 5,840,128 | |||
Pharmaceuticals 3.5% | |||||
Allergan PLC | 65,166 | 11,746,823 | |||
Merck & Company, Inc. | 186,819 | 11,069,026 | |||
Novartis AG, ADR | 65,882 | 5,933,333 | |||
Industrials 13.7% | 112,858,197 | ||||
Aerospace and defense 3.8% | |||||
L3 Technologies, Inc. | 44,176 | 9,385,633 | |||
United Technologies Corp. | 159,889 | 22,066,281 | |||
Industrial conglomerates 5.2% | |||||
General Electric Company | 2,643,911 | 42,752,041 | |||
Professional services 0.5% | |||||
Nielsen Holdings PLC | 112,080 | 4,192,913 | |||
Road and rail 2.8% | |||||
Union Pacific Corp. | 171,758 | 22,929,693 | |||
Trading companies and distributors 1.4% | |||||
United Rentals, Inc. (A) | 63,672 | 11,531,636 | |||
Information technology 12.7% | 105,230,407 | ||||
Communications equipment 1.1% | |||||
Cisco Systems, Inc. | 223,684 | 9,291,833 | |||
Internet software and services 2.6% | |||||
eBay, Inc. (A) | 522,652 | 21,209,218 | |||
Software 4.3% | |||||
Microsoft Corp. | 238,007 | 22,613,045 | |||
Oracle Corp. | 254,521 | 13,130,738 | |||
Technology hardware, storage and peripherals 4.7% | |||||
Apple, Inc. | 232,847 | 38,985,573 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK FUNDAMENTAL LARGE CAP VALUE FUND | 13 |
Shares | Value | ||||
Materials 2.2% | $17,932,858 | ||||
Chemicals 2.2% | |||||
LyondellBasell Industries NV, Class A | 149,640 | 17,932,858 | |||
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 1.7% | $13,510,000 | ||||
(Cost $13,510,000) | |||||
U.S. Government Agency 1.0% | 7,971,000 | ||||
Federal Agricultural Mortgage Corp. Discount Note | 1.200 | 02-01-18 | 753,000 | 753,000 | |
Federal Home Loan Bank Discount Note | 0.900 | 02-01-18 | 1,032,000 | 1,032,000 | |
Federal Home Loan Bank Discount Note | 1.200 | 02-01-18 | 6,186,000 | 6,186,000 |
Par value^ | Value | ||||
Repurchase agreement 0.7% | 5,539,000 | ||||
Barclays Tri-Party Repurchase Agreement dated 1-31-18 at 1.350% to be repurchased at $5,264,197 on 2-1-18, collateralized by $5,834,000 U.S. Treasury Bonds, 2.500% due 2-15-46 (valued at $5,369,539, including interest) | 5,264,000 | 5,264,000 | |||
Repurchase Agreement with State Street Corp. dated 1-31-18 at 0.540% to be repurchased at $275,004 on 2-1-18, collateralized by $280,000 U.S. Treasury Notes, 1.375% due 9-30-18 (valued at $280,522, including interest) | 275,000 | 275,000 |
Total investments (Cost $652,223,787) 100.0% | $824,725,474 | ||||
Other assets and liabilities, net 0.0% | 341,836 | ||||
Total net assets 100.0% | $825,067,310 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
(A) | Non-income producing security. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
14 | JOHN HANCOCK Fundamental Large Cap Value Fund | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Investments, at value (Cost $652,223,787) | $824,725,474 | |||||||||||||||||||||||||||||
Cash | 894 | |||||||||||||||||||||||||||||
Foreign currency, at value (Cost $59) | 59 | |||||||||||||||||||||||||||||
Receivable for fund shares sold | 44,377 | |||||||||||||||||||||||||||||
Dividends and interest receivable | 386,381 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 60,714 | |||||||||||||||||||||||||||||
Total assets | 825,217,899 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Payable for fund shares repurchased | 26,374 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 33,529 | |||||||||||||||||||||||||||||
Transfer agent fees | 2,476 | |||||||||||||||||||||||||||||
Distribution and service fees | 45 | |||||||||||||||||||||||||||||
Trustees' fees | 1,686 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 86,479 | |||||||||||||||||||||||||||||
Total liabilities | 150,589 | |||||||||||||||||||||||||||||
Net assets | $825,067,310 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $643,238,742 | |||||||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | (742,432 | ) | ||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency transactions | 10,069,313 | |||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments | 172,501,687 | |||||||||||||||||||||||||||||
Net assets | $825,067,310 | |||||||||||||||||||||||||||||
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 ($21,104,852 ÷ 1,412,354 shares)1 | $14.94 | |||||||||||||||||||||||||||||
Class C ($2,269,779 ÷ 151,735 shares)1 | $14.96 | |||||||||||||||||||||||||||||
Class I ($1,823,421 ÷ 121,452 shares) | $15.01 | |||||||||||||||||||||||||||||
Class R2 ($271,913 ÷ 18,151 shares) | $14.98 | |||||||||||||||||||||||||||||
Class R4 ($48,358 ÷ 3,224 shares) | $15.00 | |||||||||||||||||||||||||||||
Class R6 ($5,416,426 ÷ 361,191 shares) | $15.00 | |||||||||||||||||||||||||||||
Class NAV ($794,132,561 ÷ 52,960,595 shares) | $14.99 | |||||||||||||||||||||||||||||
Maximum offering price per share | ||||||||||||||||||||||||||||||
Class A (net asset value per share ÷ 95%)2 | $15.73 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Dividends | $7,161,142 | |||||||||||||||||||||||
Interest | 27,780 | |||||||||||||||||||||||
Less foreign taxes withheld | (36,624 | ) | ||||||||||||||||||||||
Total investment income | 7,152,298 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 2,613,253 | |||||||||||||||||||||||
Distribution and service fees | 41,382 | |||||||||||||||||||||||
Accounting and legal services fees | 64,625 | |||||||||||||||||||||||
Transfer agent fees | 14,261 | |||||||||||||||||||||||
Trustees' fees | 3,397 | |||||||||||||||||||||||
State registration fees | 48,144 | |||||||||||||||||||||||
Printing and postage | 15,120 | |||||||||||||||||||||||
Professional fees | 33,802 | |||||||||||||||||||||||
Custodian fees | 48,107 | |||||||||||||||||||||||
Other | 12,842 | |||||||||||||||||||||||
Total expenses | 2,894,933 | |||||||||||||||||||||||
Less expense reductions | (34,212 | ) | ||||||||||||||||||||||
Net expenses | 2,860,721 | |||||||||||||||||||||||
Net investment income | 4,291,577 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Investments and foreign currency transactions | 25,443,513 | |||||||||||||||||||||||
25,443,513 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Investments and translation of assets and liabilities in foreign currencies | 60,212,745 | |||||||||||||||||||||||
60,212,745 | ||||||||||||||||||||||||
Net realized and unrealized gain | 85,656,258 | |||||||||||||||||||||||
Increase in net assets from operations | $89,947,835 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | |||||||||||||||||||||||||||||||||||||||||||||
From operations | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income | $4,291,577 | $13,313,144 | |||||||||||||||||||||||||||||||||||||||||||
Net realized gain | 25,443,513 | 294,628,167 | |||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 60,212,745 | (158,528,830 | ) | ||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 89,947,835 | 149,412,481 | |||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | |||||||||||||||||||||||||||||||||||||||||||||
From net investment income | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (160,374 | ) | (377,440 | ) | |||||||||||||||||||||||||||||||||||||||||
Class C | (3,320 | ) | (24,838 | ) | |||||||||||||||||||||||||||||||||||||||||
Class I | (29,521 | ) | (63,533 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R2 | (2,092 | ) | (5,693 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R4 | (521 | ) | (2,399 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R6 | (58,959 | ) | (24,466 | ) | |||||||||||||||||||||||||||||||||||||||||
Class NAV | (9,177,347 | ) | (17,083,834 | ) | |||||||||||||||||||||||||||||||||||||||||
From net realized gain | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (1,383,884 | ) | (126,714 | ) | |||||||||||||||||||||||||||||||||||||||||
Class C | (148,129 | ) | (11,781 | ) | |||||||||||||||||||||||||||||||||||||||||
Class I | (184,653 | ) | (18,750 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R2 | (17,898 | ) | (1,850 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R4 | (3,429 | ) | (720 | ) | |||||||||||||||||||||||||||||||||||||||||
Class R6 | (338,402 | ) | (6,941 | ) | |||||||||||||||||||||||||||||||||||||||||
Class NAV | (52,532,795 | ) | (4,840,712 | ) | |||||||||||||||||||||||||||||||||||||||||
Total distributions | (64,041,324 | ) | (22,589,671 | ) | |||||||||||||||||||||||||||||||||||||||||
From fund share transactions | (1,500,351 | ) | (554,250,979 | ) | |||||||||||||||||||||||||||||||||||||||||
Total increase (decrease) | 24,406,160 | (427,428,169 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net assets | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 800,661,150 | 1,228,089,319 | |||||||||||||||||||||||||||||||||||||||||||
End of period | $825,067,310 | $800,661,150 | |||||||||||||||||||||||||||||||||||||||||||
Undistributed (accumulated distributions in excess of) net investment income | ($742,432 | ) | $4,398,125 |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.49 | $12.80 | $13.84 | $13.62 | $13.11 | $10.27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.05 | 0.12 | 0.12 | 0.09 | 0.07 | 0.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.59 | 1.96 | (0.52 | ) | 0.94 | 1.82 | 3.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.64 | 2.08 | (0.40 | ) | 1.03 | 1.89 | 3.43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.29 | ) | (0.09 | ) | (0.07 | ) | (0.09 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | (0.74 | ) | (1.29 | ) | (0.49 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.19 | ) | (0.39 | ) | (0.64 | ) | (0.81 | ) | (1.38 | ) | (0.59 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $14.94 | $14.49 | $12.80 | $13.84 | $13.62 | $13.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 11.55 | 5 | 16.40 | (2.92 | ) | 7.64 | 15.08 | 34.46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $21 | $21 | $17 | $16 | $12 | $9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.11 | 6 | 1.11 | 1.11 | 1.14 | 1.34 | 1.53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.10 | 6 | 1.10 | 1.10 | 1.13 | 1.30 | 1.30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.68 | 6 | 0.88 | 0.93 | 0.62 | 0.54 | 0.96 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | 49 | 21 | 20 | 24 | 38 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class C Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.47 | $12.79 | $13.83 | $13.66 | $13.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)3 | — | 0.02 | 0.03 | (0.04 | ) | (0.01 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.58 | 1.96 | (0.52 | ) | 0.95 | (0.20 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.58 | 1.98 | (0.49 | ) | 0.91 | (0.21 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.03 | ) | (0.20 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | (0.74 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.09 | ) | (0.30 | ) | (0.55 | ) | (0.74 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $14.96 | $14.47 | $12.79 | $13.83 | $13.66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)5,6 | 11.13 | 4 | 15.63 | (3.59 | ) | 6.73 | (1.51 | ) 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $1 | $1 | — | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.81 | 8 | 1.81 | 1.81 | 2.60 | 17.11 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.80 | 8 | 1.80 | 1.80 | 2.00 | 2.00 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.04 | ) 8 | 0.17 | 0.22 | (0.26 | ) | (0.69 | ) 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | 49 | 21 | 20 | 24 | 9 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class C shares is 6-27-14. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | The portfolio turnover is shown for the period from 8-1-13 to 7-31-14. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.58 | $12.87 | $13.92 | $13.68 | $13.17 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.08 | 0.16 | 0.16 | 0.11 | 0.13 | 0.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.58 | 1.98 | (0.53 | ) | 0.96 | 1.81 | 3.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.66 | 2.14 | (0.37 | ) | 1.07 | 1.94 | 3.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.17 | ) | (0.33 | ) | (0.13 | ) | (0.09 | ) | (0.14 | ) | (0.14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | (0.74 | ) | (1.29 | ) | (0.49 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.23 | ) | (0.43 | ) | (0.68 | ) | (0.83 | ) | (1.43 | ) | (0.63 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.01 | $14.58 | $12.87 | $13.92 | $13.68 | $13.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 11.67 | 4 | 16.81 | (2.64 | ) | 7.93 | 15.40 | 35.11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $5 | $3 | $3 | $2 | $4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.81 | 5 | 0.80 | 0.79 | 0.94 | 1.53 | 1.09 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.80 | 5 | 0.79 | 0.78 | 0.93 | 0.94 | 0.92 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.04 | 5 | 1.18 | 1.24 | 0.76 | 0.96 | 1.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | 49 | 21 | 20 | 24 | 38 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Class R2 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.53 | $12.84 | $13.90 | $13.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.05 | 0.12 | 0.13 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.59 | 1.97 | (0.53 | ) | 0.46 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.64 | 2.09 | (0.40 | ) | 0.49 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.13 | ) | (0.30 | ) | (0.11 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.19 | ) | (0.40 | ) | (0.66 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $14.98 | $14.53 | $12.84 | $13.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 11.53 | 5 | 16.43 | (2.88 | ) | 3.65 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 6 | — | 6 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.14 | 7 | 1.11 | 1.05 | 0.93 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.13 | 7 | 1.10 | 1.04 | 0.92 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.67 | 7 | 0.90 | 1.07 | 0.67 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | 49 | 21 | 20 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R2 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class R4 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.55 | $12.85 | $13.90 | $13.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.08 | 0.16 | 0.15 | 0.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.59 | 1.96 | (0.52 | ) | 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.67 | 2.12 | (0.37 | ) | 0.49 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.16 | ) | (0.32 | ) | (0.13 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.22 | ) | (0.42 | ) | (0.68 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.00 | $14.55 | $12.85 | $13.90 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 11.77 | 5 | 16.70 | (2.70 | ) | 3.65 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | — | 6 | — | 6 | — | 6 | — | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.96 | 7 | 0.96 | 0.95 | 0.93 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.86 | 7 | 0.85 | 0.84 | 0.82 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.04 | 7 | 1.15 | 1.19 | 0.77 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | �� | 49 | 21 | 20 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R4 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class R6 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.57 | $12.86 | $13.91 | $13.41 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income3 | 0.07 | 0.18 | 0.15 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.61 | 1.97 | (0.50 | ) | 0.45 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.68 | 2.15 | (0.35 | ) | 0.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.34 | ) | (0.15 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.25 | ) | (0.44 | ) | (0.70 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $15.00 | $14.57 | $12.86 | $13.91 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 11.79 | 5 | 16.93 | (2.53 | ) | 3.73 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $5 | $1 | $1 | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.71 | 7 | 0.71 | 0.70 | 0.68 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.70 | 7 | 0.68 | 0.68 | 0.66 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.97 | 7 | 1.30 | 1.19 | 0.94 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | 49 | 21 | 20 | 8 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class R6 shares is 3-27-15. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Less than $500,000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | The portfolio turnover is shown for the period from 8-1-14 to 7-31-15. |
Class NAV Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $14.57 | $12.86 | $13.91 | $13.67 | $13.16 | $10.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.08 | 0.20 | 0.17 | 0.15 | 0.15 | 0.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.59 | 1.95 | (0.52 | ) | 0.96 | 1.82 | 3.31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 1.67 | 2.15 | (0.35 | ) | 1.11 | 1.97 | 3.51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.19 | ) | (0.34 | ) | (0.15 | ) | (0.13 | ) | (0.17 | ) | (0.16 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | (1.06 | ) | (0.10 | ) | (0.55 | ) | (0.74 | ) | (1.29 | ) | (0.49 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (1.25 | ) | (0.44 | ) | (0.70 | ) | (0.87 | ) | (1.46 | ) | (0.65 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $14.99 | $14.57 | $12.86 | $13.91 | $13.67 | $13.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 11.72 | 4 | 16.93 | (2.54 | ) | 8.23 | 15.69 | 35.33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $794 | $771 | $1,206 | $1,289 | $1,201 | $924 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 0.70 | 5 | 0.69 | 0.68 | 0.67 | 0.68 | 0.70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 0.69 | 5 | 0.68 | 0.67 | 0.66 | 0.67 | 0.69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.07 | 5 | 1.49 | 1.36 | 1.10 | 1.16 | 1.69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 13 | 49 | 21 | 20 | 24 | 38 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Note 1 — Organization
John Hancock Fundamental Large Cap Value Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term capital appreciation.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A and Class C are offered to all investors. Class I shares are offered to institutions and certain investors. Class R2 and R4 shares are available only to certain retirement plans. Class R6 shares are only available to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices. Foreign securities and currencies are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of January 31, 2018, by major security category or type:
Total value at 1-31-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | ||
Investments in securities: | |||||
Assets | |||||
Common stocks | |||||
Consumer discretionary | $67,129,564 | $67,129,564 | — | — | |
Consumer staples | 37,752,107 | 11,643,462 | $26,108,645 | — | |
Energy | 72,424,602 | 72,424,602 | — | — | |
Financials | 310,668,274 | 310,668,274 | — | — | |
Health care | 87,219,465 | 87,219,465 | — | — | |
Industrials | 112,858,197 | 112,858,197 | — | — | |
Information technology | 105,230,407 | 105,230,407 | — | — | |
Materials | 17,932,858 | 17,932,858 | — | — | |
Short-term investments | 13,510,000 | — | 13,510,000 | — | |
Total investments in securities | $824,725,474 | $785,106,829 | $39,618,645 | — |
Repurchase agreements. The fund may enter into repurchase agreements. When the fund enters into a repurchase agreement, it receives collateral that is held in a segregated account by the fund's custodian, or for tri-party repurchase agreements, collateral is held at a third-party custodian bank in a segregated account for the benefit of the fund. The collateral amount is marked-to-market and monitored on a daily basis to ensure that the collateral held is in an amount not less than the principal amount of the repurchase agreement plus any accrued interest. Collateral received by the fund for repurchase agreements is disclosed in the Fund's investments as part of the caption related to the repurchase agreement.
Repurchase agreements are typically governed by the terms and conditions of the Master Repurchase Agreement and/or Global Master Repurchase Agreement (collectively, MRA). Upon an event of default, the non-defaulting party may close out all transactions traded under the MRA and net amounts owed. Absent an event of default, assets and liabilities resulting from repurchase agreements are not offset in the Statement of assets and liabilities. In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the collateral value may decline or the counterparty may have insufficient assets to pay back claims resulting from close-out of the transactions.
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV 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-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on
the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are also subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $1,914.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends and capital gain 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 in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to wash sales loss deferrals, partnerships and in-kind transactions.
Note 3 — Guarantees and indemnifications
Under the Trust's organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 4 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: a) 0.70% of the first $500 million of the fund's aggregate daily net assets together with the net assets of Fundamental Large Cap Value Trust, a series of the John Hancock Variable Insurance Trust (combined aggregate average daily net assets); b) 0.65% of the next $500 million of the combined aggregate average daily net assets; and c) 0.60% of the combined aggregate average daily net assets in excess of $1 billion. The Advisor has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets. This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
Prior to November 30, 2017, the Advisor had contractually agreed to waive and/or reimburse all class-specific expenses for Class R6 shares of the fund to the extent they exceeded 0.00% of average net assets attributable to the class.
The expense reductions described above amounted to the following for the six months ended January 31, 2018:
Class | Expense reduction | Class | Expense reduction | |
Class A | $846 | Class R4 | $4 | |
Class C | 89 | Class R6 | 244 | |
Class I | 151 | Class NAV | 32,817 | |
Class R2 | 13 | Total | $34,164 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 0.64% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class C, Class R2 and Class R4 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for Class R2 and Class R4 shares, the fund pays for certain other services. The fund may pay up to the following contractual rates of distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee | Service fee | Class | Rule 12b-1 fee | Service fee | |
Class A | 0.30% | — | Class R2 | 0.25% | 0.25% | |
Class C | 1.00% | — | Class R4 | 0.25% | 0.10% |
The fund's Distributor has contractually agreed to waive 0.10% of Rule12b-1 fees for Class R4 shares. The current waiver agreement expires on November 30, 2018, unless renewed by mutual agreement of the fund and the Distributor based upon a determination that this is appropriate under the circumstances at the time. This contractual waiver amounted to $48 for Class R4 shares for the six months ended January 31, 2018.
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $18,876 for the six months ended January 31, 2018. Of this amount, $3,228 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $15,552 was paid as sales commissions to broker-dealers and $96 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, there were no CDSCs received by the Distributor.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $30,103 | $10,918 |
Class C | 10,524 | 1,145 |
Class I | — | 1,966 |
Class R2 | 636 | 19 |
Class R4 | 119 | 6 |
Class R6 | — | 207 |
Total | $41,382 | $14,261 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Interfund lending program. Pursuant to an Exemptive Order issued by the SEC, the fund, along with certain other funds advised by the Advisor or its affiliates, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, no interfund loans were outstanding. The fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or lender | Weighted average loan balance | Days outstanding | Weighted average interest rate | Interest expense |
Borrower | $2,706,513 | 3 | 1.480% | ($334) |
Note 5 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 204,008 | $3,007,353 | 456,853 | $6,245,135 | ||||||||||||||||||||||
Distributions reinvested | 106,389 | 1,542,648 | 37,028 | 503,587 | ||||||||||||||||||||||
Repurchased | (317,209 | ) | (4,626,914 | ) | (406,831 | ) | (5,519,358 | ) | ||||||||||||||||||
Net increase (decrease) | (6,812 | ) | ($76,913 | ) | 87,050 | $1,229,364 | ||||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 17,891 | $264,329 | 57,562 | $784,823 | ||||||||||||||||||||||
Distributions reinvested | 10,430 | 151,449 | 2,687 | 36,618 | ||||||||||||||||||||||
Repurchased | (18,793 | ) | (273,598 | ) | (32,767 | ) | (437,175 | ) | ||||||||||||||||||
Net increase | 9,528 | $142,180 | 27,482 | $384,266 | ||||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 53,951 | $797,132 | 299,388 | $4,144,561 | ||||||||||||||||||||||
Distributions reinvested | 14,710 | 214,174 | 5,902 | 80,510 | ||||||||||||||||||||||
Repurchased | (285,260 | ) | (4,263,309 | ) | (161,778 | ) | (2,184,554 | ) | ||||||||||||||||||
Net increase (decrease) | (216,599 | ) | ($3,252,003 | ) | 143,512 | $2,040,517 |
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Sold | 778 | $11,521 | 2,229 | $30,686 | ||||||||||||||||||||||
Distributions reinvested | 1,111 | 16,151 | 338 | 4,607 | ||||||||||||||||||||||
Repurchased | (4,792 | ) | (73,364 | ) | (1,681 | ) | (21,757 | ) | ||||||||||||||||||
Net increase (decrease) | (2,903 | ) | ($45,692 | ) | 886 | $13,536 | ||||||||||||||||||||
Class R4 shares | ||||||||||||||||||||||||||
Repurchased | (4,233 | ) | (65,400 | ) | — | — | ||||||||||||||||||||
Net increase (decrease) | (4,233 | ) | ($65,400 | ) | — | — | ||||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 262,690 | $3,950,494 | 17,777 | $254,714 | ||||||||||||||||||||||
Distributions reinvested | 27,329 | 397,361 | 2,065 | 28,148 | ||||||||||||||||||||||
Repurchased | (12,944 | ) | (193,092 | ) | (14,057 | ) | (191,051 | ) | ||||||||||||||||||
Net increase | 277,075 | $4,154,763 | 5,785 | $91,811 | ||||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 236,560 | $3,560,321 | 55,463,154 | $707,175,116 | ||||||||||||||||||||||
Distributions reinvested | 4,244,164 | 61,710,142 | 1,608,551 | 21,924,546 | ||||||||||||||||||||||
Repurchased | (4,475,834 | ) | (67,627,749 | ) | (97,859,560 | ) | (1,287,110,135 | ) | ||||||||||||||||||
Net increase (decrease) | 4,890 | ($2,357,286 | ) | (40,787,855 | ) | ($558,010,473 | ) | |||||||||||||||||||
Total net increase (decrease) | 60,946 | ($1,500,351 | ) | (40,523,140 | ) | ($554,250,979 | ) |
There were no fund share transactions for Class R4 for the year ended July 31, 2017.
Affiliates of the fund owned 18%, 100%, 25% and 100% of shares of Class R2, Class R4, Class R6 and Class NAV, respectively, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 6 — Purchase and sale of securities
Purchases and sales of securities, other than short-term investments amounted to $107,315,750 and $172,717,269, respectively, for the six months ended January 31, 2018.
Note 7 — Industry or sector risk
The fund may invest a large percentage of its assets in one or more particular industries or sectors of the economy. If a large percentage of the fund's assets are economically tied to a single or small number of industries or sectors of the economy, the fund will be less diversified than a more broadly diversified fund, and it may cause the fund to underperform if that industry or sector underperforms. In addition, focusing on a particular industry or sector may make the fund's NAV more volatile. Further, a fund that invests in particular industries or sectors is particularly susceptible to the impact of market, economic, regulatory and other factors affecting those industries or sectors.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At January 31, 2018, funds within the John Hancock group of funds complex held 89.5% of the fund's net assets. The following funds had an affiliate ownership of 5% or more of the fund's net assets:
Fund | Affiliate concentration |
John Hancock Variable Insurance Trust Managed Volatility Growth Portfolio | 49.1% |
John Hancock Variable Insurance Trust Managed Volatility Balanced Portfolio | 32.1% |
John Hancock Variable Insurance Trust Managed Volatility Moderate Porfolio | 8.4% |
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor John Hancock Asset Management a division of Manulife Asset Management (US) LLC 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 |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
John Hancock family of funds
DOMESTIC EQUITY FUNDS Balanced Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Fundamental All Cap Core Fundamental Large Cap Core Fundamental Large Cap Value New Opportunities Small Cap Core Small Cap Value Small Company Strategic Growth U.S. Global Leaders Growth U.S. Growth Value Equity GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Greater China Opportunities International Growth International Small Company International Value Equity | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Global Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Credit Opportunities Spectrum Income Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Enduring Assets Financial Industries Global Absolute Return Strategies Global Conservative Absolute Return Global Focused Strategies Natural Resources Redwood Regional Bank Seaport Technical Opportunities |
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Fundamental Large Cap Value Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431079 | 374SA 1/18 3/18 |
John Hancock
Diversified Strategies Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In the weeks following the close of the reporting period, markets around the world experienced a meaningful rise in volatility. Stocks declined as investors reacted to higher bond yields and the prospect of rising inflation, even if that inflation was up from historically low levels. While some in the asset management community believe the sell-off will be temporary, it's likely that the era of extremely low volatility is behind us for the time being.
Ultimately, asset prices are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close: Unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
The recently passed tax reform legislation appears poised to inject substantial stimulus into U.S. businesses at the same time that industry regulations are being rolled back across large swaths of the economy, including the systemically important financials sector. One moderating factor is the U.S. Federal Reserve's continued tightening of monetary policy. In mid-December, the federal funds rate was lifted by a quarter of a percentage point, the fifth such increase in the current cycle. While rising interest rates alone may not cause the economy to pull back, markets will be closely attuned to any suggestion that policymakers may quicken the pace of interest-rate increases in the year ahead.
Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence that accompanies investing in any market cycle.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. Investing involves risks, including the potential loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. It is not possible to invest directly into an index. For more up-to-date information, please visit our website at jhinvestments.com.
John Hancock
Diversified Strategies Fund
INVESTMENT OBJECTIVE
The fund seeks long-term total return.
PORTFOLIO COMPOSITION AS OF 1/31/18 (%)
A note about risks
Stock prices can be volatile and are affected by both general economic conditions and the financial prospects of individual companies. Large company stocks could fall out of favor. The stock prices of midsize and small companies can change more frequently and dramatically than those of large companies. Fixed-income investments are subject to interest-rate and credit-rate risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Please see the fund's prospectus for additional risks.
PORTFOLIO ALLOCATION AS OF 1/31/18 (%)
U.S. Government | 7.0 | |
Corporate bonds | 3.1 | |
Exchange-traded funds | 1.4 | |
Purchased options | 0.2 | |
Short-term investments and other | 88.3 | |
Commercial paper | 54.8 | |
Money market funds | 17.0 | |
U.S. Government | 15.2 | |
Other assets and liabilities, net | 1.3 | |
TOTAL | 100.0 | |
As a percentage of net assets. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectus for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,008.20 | $8.60 | 1.70% |
Hypothetical example for comparison purposes | 1,000.00 | 1,016.60 | 8.64 | 1.70% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,011.10 | 7.05 | 1.39% |
Hypothetical example for comparison purposes | 1,000.00 | 1,018.20 | 7.07 | 1.39% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 7.0% | $737,758 | ||||
(Cost $748,199) | |||||
U.S. Government 7.0% | 737,758 | ||||
U.S. Treasury | |||||
Treasury Inflation Protected Security | 0.375 | 01-15-27 | 515,681 | 505,181 | |
Treasury Inflation Protected Security | 0.375 | 07-15-27 | 236,969 | 232,577 | |
Corporate bonds 3.1% | $326,835 | ||||
(Cost $331,781) | |||||
Energy 3.1% | 326,835 | ||||
Oil, gas and consumable fuels 3.1% | |||||
Pertamina Persero PT (A) | 6.450 | 05-30-44 | 275,000 | 326,835 |
Shares | Value | ||||
Exchange-traded funds 1.4% | $141,327 | ||||
(Cost $123,459) | |||||
iShares Transportation Average ETF | 715 | 141,327 | |||
Contracts/Notional amount | Value | ||||
Purchased options 0.2% | $21,192 | ||||
(Cost $26,276) | |||||
Calls 0.1% | 13,290 | ||||
Over the Counter Option on the GBP vs. USD (Expiration Date: 4-19-18; Strike Price: GBP 1.42; Counterparty: HSBC Bank PLC) (B)(C) | 585,000 | 13,290 | |||
Puts 0.1% | 7,902 | ||||
Over the Counter Option on the GBP vs. USD (Expiration Date: 4-19-18; Strike Price: GBP 1.38; Counterparty: HSBC Bank PLC) (B)(C) | 1,170,000 | 7,902 | |||
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 87.0% | $9,130,086 | ||||
(Cost $9,130,319) | |||||
Commercial paper 54.8% | 5,744,461 | ||||
3M Company | 1.480 | 02-05-18 | 250,000 | 249,959 | |
Bank Tokyo-Mitsubishi UFJ, Ltd. | 1.580 | 02-28-18 | 500,000 | 499,405 | |
BMW US Capital LLC | 1.530 | 02-05-18 | 500,000 | 499,901 | |
CPPIB Capital, Inc. | 1.500 | 02-16-18 | 500,000 | 499,675 | |
Estee Lauder Companies | 1.450 | 02-26-18 | 500,000 | 499,497 | |
John Deere, Ltd. | 1.550 | 03-05-18 | 250,000 | 249,651 | |
Koch Resources LLC | 1.490 | 02-06-18 | 250,000 | 249,941 | |
Manhattan Asset Funding Company LLC | 1.620 | 03-23-18 | 500,000 | 498,875 | |
National Rural Utilities Cooperative Finance Corp. | 1.520 | 02-01-18 | 500,000 | 499,980 | |
Novartis Securities Investment, Ltd. | 1.500 | 02-07-18 | 500,000 | 499,865 | |
Philip Morris International, Inc. | 1.430 | 02-14-18 | 250,000 | 249,871 | |
Praxair, Inc. | 1.500 | 02-15-18 | 250,000 | 249,854 |
6 | JOHN HANCOCK DIVERSIFIED STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Yield* (%) | Maturity date | Par value^ | Value | ||
Commercial paper (continued) | |||||
Telstra Corp., Ltd. | 1.730 | 04-19-18 | 500,000 | $497,987 | |
The Bank of Nova Scotia | 1.690 | 02-01-18 | 500,000 | 500,000 | |
U.S. Government 15.2% | 1,597,610 | ||||
U.S. Treasury Bill | 1.281 | 03-15-18 | 1,600,000 | 1,597,610 |
Yield (%) | Shares | Value | |||
Money market funds 17.0% | 1,788,015 | ||||
State Street Institutional U.S. Government Money Market Fund, Premier Class | 1.2490(D) | 1,788,015 | 1,788,015 |
Total investments (Cost $10,360,034) 98.7% | $10,357,198 | ||||
Other assets and liabilities, net 1.3% | 136,991 | ||||
Total net assets 100.0% | $10,494,189 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
GBP | Pound Sterling |
Security Abbreviations and Legend | |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(B) | Non-income producing security. |
(C) | For this type of option, notional amounts are equivalent to number of contracts. |
(D) | The rate shown is the annualized seven-day yield as of 1-31-18. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED STRATEGIES FUND | 7 |
Open contracts | Number of contracts | Position | Expiration date | Notional basis* | Notional value* | Unrealized appreciation (depreciation) |
CME E-mini Industrial Sector Futures | 9 | Long | Mar 2018 | $711,086 | $718,920 | $7,834 |
CME E-mini Technology Sector Futures | 13 | Long | Mar 2018 | 839,398 | 894,660 | 55,262 |
Euro STOXX 600 Index Futures | 34 | Long | Mar 2018 | 408,865 | 404,820 | (4,045) |
FTSE 100 Index Futures | 6 | Long | Mar 2018 | 644,423 | 636,121 | (8,302) |
Mini IBEX 35 Futures | 4 | Long | Feb 2018 | 520,670 | 518,456 | (2,214) |
Mini Topix Index Futures | 5 | Long | Mar 2018 | 86,970 | 84,249 | (2,721) |
Russell 2000 Mini Index Futures | 9 | Long | Mar 2018 | 699,072 | 709,200 | 10,128 |
SGX Nifty 50 Futures | 15 | Long | Feb 2018 | 333,261 | 331,770 | (1,491) |
TOPIX Index Futures | 1 | Long | Mar 2018 | 173,957 | 168,499 | (5,458) |
10-Year U.S. Treasury Note Futures | 19 | Short | Mar 2018 | (2,309,381) | (2,309,984) | (603) |
Euro STOXX 50 Index Futures | 9 | Short | Mar 2018 | (402,730) | (402,262) | 468 |
FTSE MIB Index Futures | 3 | Short | Mar 2018 | (409,369) | (437,572) | (28,203) |
Mini FTSE MIB Index Futures | 3 | Short | Mar 2018 | (84,270) | (87,514) | (3,244) |
S&P 500 Index E-Mini Futures | 17 | Short | Mar 2018 | (2,353,874) | (2,401,930) | (48,056) |
$(30,645) |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
CAD | 589,188 | NOK | 3,715,132 | Royal Bank of Canada | 3/21/2018 | — | $(3,356) |
JPY | 43,753,640 | AUD | 500,000 | Morgan Stanley Capital Services, Inc. | 3/22/2018 | — | (943) |
NOK | 3,715,132 | CAD | 575,000 | Royal Bank of Canada | 3/21/2018 | $14,898 | — |
$14,898 | $(4,299) |
Foreign currency options | |||||||
Description | Counterparty (OTC) | Exercise price | Expiration date | Notional amount* | Premium | Value | |
Calls | |||||||
British Pound versus U.S. Dollar | HSBC Bank PLC | GBP | 1.42 | Apr 2018 | 585,000 | 6,845 | (14,491) |
British Pound versus U.S. Dollar | HSBC Bank PLC | GBP | 1.44 | Apr 2018 | 1,170,000 | 16,752 | (16,820) |
$23,597 | $(31,311) | ||||||
Puts | |||||||
British Pound versus U.S. Dollar | HSBC Bank PLC | GBP | 1.34 | Apr 2018 | 1,170,000 | 4,405 | (2,573) |
$28,002 | $(33,884) | ||||||
* For this type of option, notional amounts are equivalent to number of contracts. |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
CAD | Canadian Dollar |
8 | JOHN HANCOCK DIVERSIFIED STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
GBP | Pound Sterling |
JPY | Japanese Yen |
NOK | Norwegian Krone |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK DIVERSIFIED STRATEGIES FUND | 9 |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | ||||||||||||||||||||||||||||||
Investments, at value (Cost $10,360,034) | $10,357,198 | |||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 14,898 | |||||||||||||||||||||||||||||
Cash | 224,668 | |||||||||||||||||||||||||||||
Cash held at broker for futures contracts | 223,750 | |||||||||||||||||||||||||||||
Receivable for investments sold | 18,557 | |||||||||||||||||||||||||||||
Dividends and interest receivable | 11,556 | |||||||||||||||||||||||||||||
Receivable due from advisor | 81 | |||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 4,416 | |||||||||||||||||||||||||||||
Total assets | 10,855,124 | |||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Payable for futures variation margin | 8,670 | |||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 4,299 | |||||||||||||||||||||||||||||
Written options, at value (premium received $28,002) | 33,884 | |||||||||||||||||||||||||||||
Foreign currency overdraft, at value (cost $4,358) | 4,142 | |||||||||||||||||||||||||||||
Payable for investments purchased | 268,291 | |||||||||||||||||||||||||||||
Payable to affiliates | ||||||||||||||||||||||||||||||
Accounting and legal services fees | 109 | |||||||||||||||||||||||||||||
Transfer agent fees | 1,022 | |||||||||||||||||||||||||||||
Trustees' fees | 214 | |||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 40,304 | |||||||||||||||||||||||||||||
Total liabilities | 360,935 | |||||||||||||||||||||||||||||
Net assets | $10,494,189 | |||||||||||||||||||||||||||||
Net assets consist of | ||||||||||||||||||||||||||||||
Paid-in capital | $8,139,425 | |||||||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | (74,987 | ) | ||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments, futures contracts, options written and foreign currency transactions | 2,452,845 | |||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments, futures contracts, options written and translation of assets and liabilities in foreign currencies | (23,094 | ) | ||||||||||||||||||||||||||||
Net assets | $10,494,189 | |||||||||||||||||||||||||||||
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 ($4,953,192 ÷ 484,340 shares)1 | $10.23 | |||||||||||||||||||||||||||||
Class I ($5,540,997 ÷ 540,624 shares) | $10.25 | |||||||||||||||||||||||||||||
Maximum offering price per share | ||||||||||||||||||||||||||||||
Class A (net asset value per share ÷ 95%)2 | $10.77 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Interest | $265,604 | |||||||||||||||||||||||
Dividends | 111,101 | |||||||||||||||||||||||
Less foreign taxes withheld | (3,585 | ) | ||||||||||||||||||||||
Total investment income | 373,120 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 164,804 | |||||||||||||||||||||||
Distribution and service fees | 35,976 | |||||||||||||||||||||||
Accounting and legal services fees | 1,728 | |||||||||||||||||||||||
Transfer agent fees | 17,783 | |||||||||||||||||||||||
Trustees' fees | 490 | |||||||||||||||||||||||
Printing and postage | 10,909 | |||||||||||||||||||||||
Professional fees | 22,150 | |||||||||||||||||||||||
Custodian fees | 12,375 | |||||||||||||||||||||||
Other | 4,703 | |||||||||||||||||||||||
Total expenses | 270,918 | |||||||||||||||||||||||
Less expense reductions | (6,601 | ) | ||||||||||||||||||||||
Net expenses | 264,317 | |||||||||||||||||||||||
Net investment income | 108,803 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Investments and foreign currency transactions | 3,406,158 | |||||||||||||||||||||||
Futures contracts | (246,194 | ) | ||||||||||||||||||||||
Forward foreign currency contracts | (9,517 | ) | ||||||||||||||||||||||
Written options | (7,439 | ) | ||||||||||||||||||||||
3,143,008 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Investments and translation of assets and liabilities in foreign currencies | (2,619,496 | ) | ||||||||||||||||||||||
Futures contracts | 70,211 | |||||||||||||||||||||||
Forward foreign currency contracts | (25,494 | ) | ||||||||||||||||||||||
Written options | (8,826 | ) | ||||||||||||||||||||||
(2,583,605 | ) | |||||||||||||||||||||||
Net realized and unrealized gain | 559,403 | |||||||||||||||||||||||
Increase in net assets from operations | $668,206 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net assets | |||||||||||||||||||||||||||||||||||||||||||||
From operations | |||||||||||||||||||||||||||||||||||||||||||||
Net investment income | $108,803 | $528,872 | |||||||||||||||||||||||||||||||||||||||||||
Net realized gain (loss) | 3,143,008 | (194,272 | ) | ||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | (2,583,605 | ) | 1,960,097 | ||||||||||||||||||||||||||||||||||||||||||
Increase in net assets resulting from operations | 668,206 | 2,294,697 | |||||||||||||||||||||||||||||||||||||||||||
Distributions to shareholders | |||||||||||||||||||||||||||||||||||||||||||||
From net investment income | |||||||||||||||||||||||||||||||||||||||||||||
Class A | (168,105 | ) | (481,260 | ) | |||||||||||||||||||||||||||||||||||||||||
Class I | (205,847 | ) | (181,605 | ) | |||||||||||||||||||||||||||||||||||||||||
Total distributions | (373,952 | ) | (662,865 | ) | |||||||||||||||||||||||||||||||||||||||||
From fund share transactions | (32,098,016 | ) | 769,725 | ||||||||||||||||||||||||||||||||||||||||||
Total increase (decrease) | (31,803,762 | ) | 2,401,557 | ||||||||||||||||||||||||||||||||||||||||||
Net assets | |||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 42,297,951 | 39,896,394 | |||||||||||||||||||||||||||||||||||||||||||
End of period | $10,494,189 | $42,297,951 | |||||||||||||||||||||||||||||||||||||||||||
Undistributed (accumulated distributions in excess of) net investment income | ($74,987 | ) | $190,162 |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.50 | $10.09 | $10.43 | $10.92 | $11.07 | $11.04 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.03 | 0.12 | 0.17 | 0.21 | 0.31 | 0.39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.06 | 0.45 | (0.27 | ) | (0.10 | ) | 0.42 | 0.24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.09 | 0.57 | (0.10 | ) | 0.11 | 0.73 | 0.63 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.36 | ) | (0.16 | ) | (0.23 | ) | (0.32 | ) | (0.35 | ) | (0.42 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | (0.01 | ) | (0.28 | ) | (0.53 | ) | (0.18 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.36 | ) | (0.16 | ) | (0.24 | ) | (0.60 | ) | (0.88 | ) | (0.60 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.23 | $10.50 | $10.09 | $10.43 | $10.92 | $11.07 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 0.82 | 5 | 5.74 | (0.96 | ) | 1.07 | 6.89 | 5.81 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $5 | $32 | $30 | $31 | $33 | $33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions6 | 1.72 | 7 | 1.71 | 1.77 | 1.66 | 1.62 | 1.23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions6 | 1.70 | 7 | 1.70 | 1.70 | 1.66 | 1.60 | 1.14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.63 | 7 | 1.22 | 1.67 | 1.93 | 2.87 | 3.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 90 | 73 | 55 | 62 | 119 | 40 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Ratios do not include expenses indirectly incurred from underlying funds whose expense ratios can vary based on the mix of underlying funds held by the fund. The range of expense ratios of the underlying funds held by the fund was as follows: 0.44%, 0.08% - 0.89%, 0.09%-0.89%, 0.10%-0.93%, 0.10%- 1.01% and 0.74%-1.42% for the periods ended 1-31-18, 7-31-17, 7-31-16, 7-31-15, 7-31-14, and 7-31-13, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Annualized. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.52 | $10.12 | $10.46 | $10.95 | $11.10 | $11.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.04 | 0.16 | 0.20 | 0.24 | 0.35 | 0.43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.08 | 0.43 | (0.27 | ) | (0.10 | ) | 0.42 | 0.25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.12 | 0.59 | (0.07 | ) | 0.14 | 0.77 | 0.68 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | (0.39 | ) | (0.19 | ) | (0.26 | ) | (0.35 | ) | (0.39 | ) | (0.46 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | (0.01 | ) | (0.28 | ) | (0.53 | ) | (0.18 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | (0.39 | ) | (0.19 | ) | (0.27 | ) | (0.63 | ) | (0.92 | ) | (0.64 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.25 | $10.52 | $10.12 | $10.46 | $10.95 | $11.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 1.11 | 4 | 5.94 | (0.63 | ) | 1.40 | 7.19 | 6.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $6 | $10 | $10 | $9 | $10 | $10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions5 | 1.43 | 6 | 1.40 | 1.45 | 1.35 | 1.30 | 0.86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions5 | 1.39 | 6 | 1.39 | 1.39 | 1.35 | 1.28 | 0.77 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.75 | 6 | 1.53 | 1.98 | 2.24 | 3.19 | 3.87 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 90 | 73 | 55 | 62 | 119 | 40 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | 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 fund was as follows: 0.44%, 0.08%-0.89%, 0.09%-0.89%, 0.10% - 0.93%, 0.10%-1.01%, and 0.74%-1.42% for the periods ended 1-31-18, 7-31-17, 7-31-16, 7-31-15, 7-31-14 and 7-31-13, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Note 1 — Organization
John Hancock Diversified Strategies Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust and registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term total return.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A shares are offered to all investors. Class I shares are offered to institutions and certain investors. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day. ETFs held by the fund are valued at the last sale price or official closing price on the exchange or principal market where the security trades. Options listed on an exchange are valued at the mean of the most recent bid and ask prices from the exchange where the option trades. Unlisted options are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are valued at settlement prices, which are the official closing prices published by the exchange on which they trade. Foreign index futures that trade in the electronic trading market subsequent to the close of regular trading and have sufficient liquidity will be valued at the last traded price in the electronic trading market as of 4:00 p.m. ET. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment
factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of January 31, 2018, by major security category or type:
Total value at 1-31-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||
Investments in securities: | ||||||||||||||
Assets | ||||||||||||||
U.S. Government and Agency obligations | $737,758 | — | $737,758 | — | ||||||||||
Corporate bonds | 326,835 | — | 326,835 | — | ||||||||||
Exchange-traded funds | 141,327 | $141,327 | — | — | ||||||||||
Purchased options | 21,192 | — | 21,192 | — | ||||||||||
Short-term investments | 9,130,086 | 1,788,015 | 7,342,071 | — | ||||||||||
Total investments in securities | $10,357,198 | $1,929,342 | $8,427,856 | — | ||||||||||
Derivatives: | ||||||||||||||
Assets | ||||||||||||||
Futures | $73,692 | $73,224 | $468 | — | ||||||||||
Forward foreign currency contracts | 14,898 | — | 14,898 | — | ||||||||||
Liabilities | ||||||||||||||
Futures | $(104,337 | ) | $(48,659 | ) | $(55,678 | ) | — | |||||||
Forward foreign currency contracts | (4,299 | ) | — | (4,299 | ) | — | ||||||||
Written options | (33,884 | ) | — | (33,884 | ) | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Inflation-indexed bonds. Inflation-indexed bonds are securities that generally have a lower coupon interest rate fixed at issuance but whose principal value is periodically adjusted based on a rate of inflation, such as the Consumer Price Index.
Over the life of an inflation-indexed bond, interest is paid on the inflation adjusted principal value as described above. Increases in the principal amount of these securities are recorded as interest income. Decreases in the principal amount of these securities may reduce interest income to the extent of income previously recorded. If these decreases are in excess of income previously recorded, an adjustment to the cost of the security is made.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law. Overdrafts at period end are presented under the caption Foreign currency overdraft, at value, in the Statement of assets and liabilities.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $1,249.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of July 31, 2017, the fund has a short-term capital loss carryforward of $268,164 and a long-term capital loss carryforward of $415,840 available to offset future net realized capital gains. These carryforwards do not expire.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends and capital gain 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 in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, derivative transactions, partnerships, amortization and accretion on debt securities, and wash sale loss deferrals.
Note 3 — Derivative Instruments
The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Forward foreign currency contracts and certain options are typically traded through the OTC market. Certain forwards and options are regulated by the Commodity Futures Trading Commission (the CFTC). Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
Futures and certain options are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Margin requirements for exchange-traded derivatives are set by the broker or applicable clearing house. Margin for exchange-traded transactions are detailed in the Statement of assets and liabilities as Cash held at broker for futures contracts.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets, contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument
and potential losses in excess of the amounts recognized on the Statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures contract, the fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is generally based on a percentage of the contract value; this amount is the initial margin for the trade. The margin deposit must then be maintained at the established level over the life of the contract. Futures margin receivable / payable is included on the Statement of assets and liabilities. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (variation margin) and unrealized gain or loss is recorded by the fund. When the contract is closed, the fund records a realized gain or loss 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.
During the six months ended January 31, 2018, the fund used futures contracts to maintain diversity of the fund, manage against anticipated changes in securities, gain exposure to certain securities markets and as a substitute for securities purchased. The fund held futures contracts with notional values ranging from $7.7 million to $10.3 million, as measured at each quarter end.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, the risk that currency movements will not favor the fund thereby reducing the fund's total return, and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the six months ended January 31, 2018, the fund used forward foreign currency contracts to manage against anticipated changes in currency exchange rates, gain exposure to foreign currencies and as a substitute for securities purchased. The fund held forward foreign currency contracts with notional values ranging from $1.3 million to $5.1 million, as measured at each quarter end.
Options. There are two types of options, put options and call options. Options are traded either OTC or on an exchange. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price. Writing puts and buying calls may increase the fund's exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the fund's exposure to such changes. Risks related to the use of options include the loss of premiums, possible illiquidity of the options markets, trading restrictions imposed by an exchange and movements in underlying security values, and for written options, potential losses in excess of the amounts recognized on the Statement of assets and liabilities. In addition, OTC options are subject to the risks of all OTC derivatives contracts.
When the fund purchases an option, the premium paid by the fund is included in the portfolio of investments and subsequently "marked-to-market" to reflect current market value. If the purchased option expires, the fund realizes a loss equal to the cost of the option. If the fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium paid. If the fund enters into a closing sale transaction, the fund realizes a gain or loss, depending on whether proceeds from the closing sale are greater or less than the original cost. When the fund writes an option, the premium received is included as a liability and subsequently "marked-to-market" to reflect the current market value of the option written. Premiums received from writing options that expire
unexercised are recorded as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium received reduces the cost basis of the securities purchased by the fund.
During the six months ended January 31, 2018, the fund used purchased options contracts to manage against anticipated changes in securities, gain exposure to certain securities markets and as a substitute for securities purchased or to be purchased. The fund held purchased options contracts with market values ranging from $4,275 to $21,192, as measured at each quarter end.
During the six months ended January 31, 2018, the fund wrote option contracts to manage against anticipated changes in securities, gain exposure to certain securities markets and as a substitute for securities purchased or to be purchased. The fund held written options contracts with market values ranging from $2,600 to $33,884, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at January 31, 2018 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Asset derivatives fair value | Liabilities derivative fair value | |||||||||||||
Equity | Receivable/payable for futures | Futures† | $73,692 | ($103,734 | ) | ||||||||||||
Interest rate | Receivable/payable for futures | Futures† | — | (603 | ) | ||||||||||||
Foreign currency | Unrealized appreciation/depreciation on forward foreign currency exchange contracts | Forward foreign currency contracts | 14,898 | (4,299 | ) | ||||||||||||
Foreign currency | Investments, at value* | Purchased options | 21,192 | — | |||||||||||||
Foreign currency | Written options, at value | Written options | — | (33,884 | ) | ||||||||||||
$109,782 | ($142,520 | ) | |||||||||||||||
† Reflects cumulative appreciation/depreciation on futures as disclosed in the Fund's investments. Only the period end variation margin is separately disclosed on the Statement of assets and liabilities. | |||||||||||||||||
* Purchased options are included in the Fund's investments |
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - net realized gain (loss) on: | |||||||||||||||||
Risk | Investments and foreign currency transactions 1 | Futures contracts | Forward foreign currency contracts | Written options | Total | ||||||||||||
Equity | ($5,972 | ) | ($267,560 | ) | — | ($7,439 | ) | ($280,971 | ) | ||||||||
Interest Rate | — | 21,366 | — | — | 21,366 | ||||||||||||
Foreign currency | — | — | ($9,517 | ) | — | (9,517 | ) | ||||||||||
Total | ($5,972 | ) | ($246,194 | ) | ($9,517 | ) | ($7,439 | ) | ($269,122 | ) | |||||||
1 Realized gain/loss associated with purchased options is included in this caption on the Statement of operations. |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - change in net unrealized appreciation (depreciation) of: | |||||||||||||||||
Risk | Investments and translation of assets and liabilities in foreign currencies 1 | Futures contracts | Forward foreign currency contracts | Written options | Total | ||||||||||||
Equity | ($657 | ) | $73,423 | — | ($2,944 | ) | $69,822 | ||||||||||
Foreign currency | (5,084 | ) | — | (25,494 | ) | (5,882 | ) | (36,460 | ) | ||||||||
Interest rate | — | (3,212 | ) | — | — | (3,212 | ) | ||||||||||
Total | ($5,741 | ) | $70,211 | ($25,494 | ) | ($8,826 | ) | $30,150 | |||||||||
1 Change in unrealized appreciation/depreciation associated with purchased options is included in this caption on the Statement of operations. |
Note 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, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 1.00% of the first $500 million of the fund's average daily net assets and (b) 0.95% of the fund's average daily net assets in excess of $500 million. The Advisor has a subadvisory agreement with John Hancock Asset Management a division of Manulife Asset Management (US) LLC, an indirectly owned subsidiary of MFC and an affiliate of the Advisor. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
The Advisor voluntarily agreed to reduce its management fee or, if necessary, make payments to Class A and Class I shares, in an amount equal to the amount by which the expenses of Class A and Class I shares exceed 1.70% and 1.39%, respectively, of average annual net assets. For purposes of this agreement, expenses mean all fund level and class specific operating expenses, excluding: (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business, (e) underlying fund expenses (acquired fund fees), and (f) short dividend expense. This agreement may be terminated at any time by the Advisor upon notice to the fund.
The expense reductions described above amounted to $995 and $5,606 for Class A and Class I shares, respectively, for the year ended January 31, 2018.
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 0.96% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018, amounted to an annual rate of 0.01% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted a distribution and service plan with respect to Class A pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. The fund pays 0.30% for Class A distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets.
Sales charges. Class A shares may be subject to up-front sales changes. For the six months ended January 31, 2018, there were no up-front sales charges assessed for Class A shares.
Class A shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, there were no CDSCs received by the Distributor for Class A.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $35,976 | $12,909 |
Class I | — | 4,874 |
Total | $35,976 | $17,783 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 468,051 | $5,000,000 | — | — | ||||||||||||||||||||||
Distributions reinvested | 16,289 | 168,105 | 48,222 | $481,260 | ||||||||||||||||||||||
Repurchased | (3,048,222 | ) | (32,562,941 | ) | — | — | ||||||||||||||||||||
Net increase (decrease) | (2,563,882 | ) | ($27,394,836 | ) | 48,222 | $481,260 | ||||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 466,370 | $5,000,000 | 10,405 | $106,860 | ||||||||||||||||||||||
Distributions reinvested | 19,927 | 205,847 | 18,178 | 181,605 | ||||||||||||||||||||||
Repurchased | (924,521 | ) | (9,909,027 | ) | — | — | ||||||||||||||||||||
Net increase (decrease) | (438,224 | ) | ($4,703,180 | ) | 28,583 | $288,465 | ||||||||||||||||||||
Total net increase (decrease) | (3,002,106 | ) | ($32,098,016 | ) | 76,805 | $769,725 |
Affiliates of the fund owned 100% of shares of Class A and Class I, on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
Purchases and sales of securities, other than short-term securities and U.S. Treasury obligations, amounted to $4,241,149 and $35,715,890 respectively, for the six months ended January 31, 2018. Purchases and sales of U.S. Treasury obligations aggregated $17,093,652 and $21,189,520, respectively, for the six months ended January 31, 2018.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor John Hancock Asset Management a division of Manulife Asset Management (US) LLC 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 |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
John Hancock family of funds
DOMESTIC EQUITY FUNDS Balanced Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Fundamental All Cap Core Fundamental Large Cap Core Fundamental Large Cap Value New Opportunities Small Cap Core Small Cap Value Small Company Strategic Growth U.S. Global Leaders Growth U.S. Growth Value Equity GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Greater China Opportunities International Growth International Small Company International Value Equity | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Global Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Credit Opportunities Spectrum Income Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Enduring Assets Financial Industries Global Absolute Return Strategies Global Conservative Absolute Return Global Focused Strategies Natural Resources Redwood Regional Bank Seaport Technical Opportunities |
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Diversified Strategies Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
392SA 1/18 3/18 |
John Hancock
Global Absolute Return Strategies Fund
Semiannual report 1/31/18
A message to shareholders
Dear shareholder,
In the weeks following the close of the reporting period, markets around the world experienced a meaningful rise in volatility. Stocks declined as investors reacted to higher bond yields and the prospect of rising inflation, even if that inflation was off historically low levels. While many in our asset management network believe the sell-off will be temporary, it's likely the era of extremely low volatility is behind us for now.
Ultimately, market prices are underpinned by fundamentals, and those continue to appear supportive. There was no shortage of good economic news to report as 2017 came to a close. In the United States, unemployment remained close to historic lows, consumer confidence rose, and the housing market continued to notch steady gains.
In step with these signals of domestic economic strength, synchronized global growth continued to gain momentum, which has contributed to favorable corporate earnings across the world's developed and emerging markets.
While markets delivered strong results over the course of the period, it's important for investors to be aware of the downside risks. Your best resource in unpredictable markets is your financial advisor, who can help position your portfolio so that it's sufficiently diversified to meet your long-term objectives and to withstand the inevitable turbulence that accompanies investing in any market cycle.
On behalf of everyone at John Hancock Investments, I'd like to take this opportunity to welcome new shareholders and to thank existing shareholders for the continued trust you've placed in us.
Sincerely,
Andrew G. Arnott
President and CEO
John Hancock Investments
Head of Wealth and Asset Management
United States and Europe
This commentary reflects the CEO's views, which are subject to change at any time. All investments entail risks, including the possible loss of principal. Diversification does not guarantee a profit or eliminate the risk of a loss. For more up-to-date information, you can visit our website at jhinvestments.com.
John Hancock
Global Absolute Return Strategies Fund
INVESTMENT OBJECTIVE
The fund seeks long-term total return.
AVERAGE ANNUAL TOTAL RETURNS AS OF 1/31/18 (%)
The ICE Bank of America Merrill Lynch U.S. Dollar 6-Month LIBOR Constant Maturity Index tracks the average interest rate at which a selection of banks in London are prepared to lend to one another in U.S. dollars with a constant maturity of 6 months.
The MSCI World Index is a free float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of global developed markets, and is included here as a broad measure of market performance.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Figures from Morningstar, Inc. include reinvested distributions and do not take into account sales charges. Actual load-adjusted performance is lower. Since-inception returns for the Morningstar fund category average are not available.
The past performance shown here reflects reinvested distributions and the beneficial effect of any expense reductions, and does not guarantee future results. Returns for periods shorter than one year are cumulative. Performance of the other share classes will vary based on the difference in the fees and expenses of those classes. Shares will fluctuate in value and, when redeemed, may be worth more or less than their original cost. Current month-end performance may be lower or higher than the performance cited, and can be found at jhinvestments.com or by calling 800-225-5291. For further information on the fund's objectives, risks, and strategy, see the fund's prospectus.
PERFORMANCE HIGHLIGHTS OVER THE LAST SIX MONTHS
The fund posted positive absolute returns
The fund was up for the period, outpacing its benchmark, as underlying strategies delivering favorable results more than offset the positions that declined.
Long equity exposure drove performance
Allocation to U.S., European, and Korean stock markets provided a tailwind in a period that favored equity, credit, and other assets that are considered relatively higher risk.
Duration and currency weighed on results
Foreign exchange and interest-rate exposure partially offset gains, as did security selection in certain strategies.
PORTFOLIO ALLOCATION AS OF 1/31/18 (%)
Common stocks | 39.3 | Corporate bonds | 13.4 | |||
Financials | 17.2 | U.S. Government | 11.4 | |||
Real estate | 5.1 | Foreign government obligations | 7.4 | |||
Industrials | 2.5 | Purchased options | 3.5 | |||
Health care | 2.4 | Short-term investments and other | 25.0 | |||
Consumer staples | 2.4 | Certificate of deposit | 11.5 | |||
Materials | 2.4 | Commercial paper | 5.7 | |||
Consumer discretionary | 2.1 | Time deposits | 4.4 | |||
Energy | 1.7 | U.S. Government | 1.6 | |||
Information technology | 1.3 | Money market funds | 0.7 | |||
Utilities | 1.1 | Other assets and liabilities, net | 1.1 | |||
Telecommunication services | 1.1 | TOTAL | 100.0 | |||
As a percentage of net assets. |
A note about risks
Absolute return funds employ certain techniques that are intended to reduce risk and volatility in the portfolio and provide protection against a decline in the fund's assets. They are not designed to outperform stocks and bonds in strong markets and there is no guarantee of positive returns or that the fund's objective will be achieved. Stock prices can be volatile and are affected by both general economic conditions and the financial prospects of individual companies. A fund concentrated in one sector or that holds a limited number of securities may fluctuate more than a fund that invests in a wider variety of sectors. Fixed-income investments are subject to interest-rate and credit risk; their value will normally decline as interest rates rise or if a creditor, grantor, or counterparty is unable or unwilling to make principal, interest, or settlement payments. Liquidity—the extent to which a security may be sold or a derivative position closed without negatively affecting its market value—may be impaired by reduced trading volume, heightened volatility, rising interest rates, and other market conditions. Derivatives transactions, such as hedging and other strategic transactions, may increase a fund's volatility and could produce disproportionate losses, potentially more than the fund's principal investment. Currency transactions are affected by fluctuations in exchange rates, which may adversely affect the U.S. dollar value of a fund's investments. Currency rates in foreign countries may fluctuate significantly for a number of reasons, including the forces of supply and demand in the foreign exchange markets, actual or perceived changes in interest rates, and intervention (or the failure to intervene) by U.S. or foreign governments or central banks, or by currency controls or political developments in the United States or abroad. Foreign investing, especially in emerging markets, has additional risks, such as currency and market volatility and political and social instability. Investments in higher-yielding, lower-rated securities involve additional risks as these securities include a higher risk of default and loss of principal. The prices of medium and small company stocks can change more frequently and dramatically than those of large company stocks. Please see the fund's prospectus for additional risks.
An interview with Portfolio Manager Guy Stern, CFA, Standard Life Investments (Corporate Funds) Limited
Guy Stern, CFA
Portfolio Manager
Standard Life Investments
What was the macroeconomic and market environment like during the six months ended January 31, 2018?
Equity markets enjoyed gains as synchronized global economic growth, renewed hopes for business-friendly U.S. fiscal reforms, and a general weakness in the U.S. dollar continued to exert a positive influence on stocks throughout much of the world. In the United States, large-cap companies led the rally as the market shrugged off anxieties of the brief government shutdown near the end of the period; European and Japanese stocks also posted gains.
Asia-Pacific equities delivered even better results, rounding off an impressive 2017 calendar year and a strong start to 2018. U.S. dollar weakness helped relative returns, while corporate profits continued to recover in the region.
Renewed expectations that inflationary pressures, especially in the United States, would tighten the global money supply and negatively affect a range of fixed-income assets rattled certain segments of the government bond markets.
How did the fund perform in absolute terms and relative to its cash benchmark?
The fund's Class A shares were up 2.82% (excluding sales charges). By comparison, the fund's cash benchmark, the ICE Bank of America Merrill Lynch U.S. Dollar 6-Month LIBOR Constant Maturity Index, posted a total return of 0.57%.
The average return in Morningstar's multialternative fund category was up 4.04%. Meanwhile, the MSCI World Index, a broad representation of global developed equity markets and a point of reference for the fund, registered a 13.97% gain.
Which of the fund's underlying strategies were the most significant contributors to performance?
U.S. and European equity market allocations delivered positive returns, boosting the fund's performance. The United States, Europe, and other developed-market regions posted strong
Emerging-market opportunities, one of the fund's newest global themes, enjoyed a boost from the fund's Korean equity strategy, which posted gains for the period. The fund's U.S. real yields position also fared well, as U.S. Treasury Inflation-Protected Securities were lifted by rising inflation expectations in the United States.
A relative value strategy, U.S. equity banks versus consumer staples, was also among the fund's top contributors. We removed this strategy from the fund before the close of the period, after it performed well and in line with our expectations.
Which strategies detracted from the fund's performance for the period?
Near the period's close, the British pound rallied to one of its highest levels since the June 2016 referendum on the U.K.'s European Union (EU) membership. The pound's appreciation was driven by renewed hopes for a better Brexit deal, from the U.K. perspective, amid signs of reasonably
PORTFOLIO COMPOSITION AS OF 1/31/18 (%)
The fund's long Japanese yen versus Korean won pair detracted from performance, as did the fund's Australian interest-rate exposure. These strategies are expected to fare relatively well in so-called risk-off environments, as diversifiers to the fund's riskier positions. However, both comparatively conservative strategies can be expected to struggle when investor sentiment favors more aggressive positioning, as was the case during this period.
The fund's emerging-market versus Brazilian equity relative value strategy detracted from performance. Despite the long-standing turmoil among the country's leadership ranks, Brazilian equities represented one of the best-performing markets for the period, posting double-digit percentage gains. Conditions remained broadly positive for emerging-market assets in general, but Brazilian stocks in particular fared even better.
Would you share a representative example or two of a strategy change you made within the fund during the period?
Near the end of the period, we added a new relative value pairing to the fund, an emerging-market versus U.K. equity strategy, which seeks to benefit from the broad-based economic recovery around much of the world. We expect equities in emerging markets to be more sensitive to global growth
COUNTRY COMPOSITION AS OF 1/31/18 (%)
United States | 38.0 |
United Kingdom | 8.9 |
France | 7.6 |
Germany | 5.5 |
Spain | 4.9 |
Switzerland | 4.5 |
Netherlands | 4.2 |
Italy | 3.7 |
Japan | 3.6 |
Denmark | 2.2 |
Other countries | 16.9 |
TOTAL | 100.0 |
As a percentage of net assets. |
than equities in the United Kingdom, as Brexit uncertainties continued to linger. Meanwhile, we closed the fund's long Indian rupee versus Korean won position to refine the aggregate balance of the fund's currency exposures.
How was the fund positioned at the end of the period?
As the period drew to a close, the fund's largest allocations to risk included its European equity banks versus European equity relative value pairing and its long U.S. equity strategy. Other equity strategies included those representing long exposure to the Japanese and Korean markets and a relative value position favoring U.S. equity large caps over small caps.
Our central thesis is for continued modest broad-based global growth, albeit with regional variations. Fiscal policy and the changing monetary policies of central banks will be important drivers of asset returns, especially as the pace of change in policies remains uncertain. The United States is moving to a tighter monetary environment, although on a gradual incline.
Improving data in Europe has reduced the European Central Bank's (ECB) appetite for monetary easing. However, the ECB will likely remain cautious in the near term given the elevated levels of uncertainty around the process of the United Kingdom's withdrawal from the EU. Japan, meanwhile, is likely to remain on a loose monetary path. Geopolitical tensions remain elevated and the island's asset prices appear relatively inexpensive.
We will seek to exploit the opportunities these conditions present by implementing a diversified range of strategies using multiple asset classes from regions around the world.
MANAGED BY
Guy Stern, CFA On the fund since 2011 Investing since 1983 |
TOTAL RETURNS FOR THE PERIOD ENDED JANUARY 31, 2018
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||||
1-year | 5-year | Since inception1 | 6-month | 5-year | Since inception1 | ||
Class A | 0.00 | 1.20 | 2.28 | -2.33 | 6.16 | 14.83 | |
Class C2 | 3.50 | 1.53 | 2.49 | 1.45 | 7.89 | 16.24 | |
Class I3 | 5.64 | 2.57 | 3.49 | 2.99 | 13.55 | 23.39 | |
Class R22,3 | 5.18 | 2.04 | 2.94 | 2.73 | 10.64 | 19.44 | |
Class R62,3 | 5.74 | 2.68 | 3.55 | 2.99 | 14.13 | 23.79 | |
Class NAV3 | 5.74 | 2.69 | 3.59 | 2.99 | 14.19 | 24.12 | |
Index 1† | 1.24 | 0.64 | 0.67 | 0.57 | 3.22 | 4.19 | |
Index 2† | 26.52 | 12.30 | 14.24 | 13.97 | 78.59 | 125.86 |
Performance figures assume all distributions have been reinvested. Figures reflect maximum sales charges on Class A shares of 5.00% and the applicable contingent deferred sales charge (CDSC) on Class C shares. Class C shares sold within one year of purchase are subject to a 1% CDSC. Sales charges are not applicable to Class I, Class R2, Class R6, and Class NAV shares.
The expense ratios of the fund, both net (including any fee waivers and/or expense limitations) and gross (excluding any fee waivers and/or expense limitations), are set forth according to the most recent publicly available prospectuses for the fund and may differ from those disclosed in the Financial highlights tables in this report. The expense ratios are as follows:
Class A | Class C | Class I | Class R2 | Class R6 | Class NAV | |
Gross/Net (%) | 1.65 | 2.35 | 1.33 | 1.74 | 1.24 | 1.22 |
Please refer to the most recent prospectuses and annual report for more information on expenses and any expense limitation arrangements for each class.
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 and other factors, 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 800-225-5291 or visit the fund's website at jhinvestments.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 fee waivers or expense reductions, without which the expenses would increase and results would have been less favorable.
† | Index 1 is the ICE Bank of America Merrill Lynch U.S. Dollar 6-Month LIBOR Constant Maturity Index; Index 2 is the MSCI World Index. |
See the following page for footnotes.
This chart and table show what happened to a hypothetical $10,000 investment in John Hancock Global Absolute Return Strategies Fund for the share classes and periods indicated, assuming all distributions were reinvested. For comparison, we've shown the same investment in two separate indexes.
The ICE Bank of America Merrill Lynch U.S. Dollar 6-Month LIBOR Constant Maturity Index tracks the average interest rate at which a selection of banks in London are prepared to lend to one another in U.S. dollars with a constant maturity of 6 months.
The MSCI World Index is a free float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of global developed markets, and is included here as a broad measure of market performance.
It is not possible to invest directly in an index. Index figures do not reflect expenses or sales charges, which would result in lower returns.
Footnotes related to performance pages
1 | From 12-19-11. |
2 | Class C shares were first offered on 8-1-12; Class R2 and Class R6 shares were first offered on 3-1-12. Returns prior to these dates are those of Class A shares except they do not include sales charges, and have not been adjusted for class-specific expenses; otherwise returns would vary. |
3 | For certain types of investors as described in the fund's prospectuses. |
4 | The contingent deferred sales charge is not applicable. |
These examples are intended to help you understand your ongoing operating expenses of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds.
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 presenting only your ongoing operating expenses here.
Actual expenses/actual returns
The first line of each share class in the table on the following page is intended to provide information about the fund's actual ongoing operating expenses, and is based on the fund's actual return. It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018.
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 January 31, 2018, by $1,000.00, then multiply it by the "expenses paid" for your share class from the table. For example, for an account value of $8,600.00, the operating expenses should be calculated as follows:
Hypothetical example for comparison purposes
The second line of each share class in the table on the following page allows you to compare the fund's ongoing operating expenses with those of any other fund. It provides an example of the fund's hypothetical account values and hypothetical expenses based on each class's actual expense ratio and an assumed 5% annualized return before expenses (which is not the fund's actual return). It assumes an account value of $1,000.00 on August 1, 2017, with the same investment held until January 31, 2018. Look in any other fund shareholder report to find its hypothetical example and you will be able to compare these expenses. Please remember that these hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.
Remember, these examples do not include any transaction costs, therefore, these examples will not help you to determine the relative total costs of owning different funds. If transaction costs were included, your expenses would have been higher. See the prospectuses for details regarding transaction costs.
SHAREHOLDER EXPENSE EXAMPLE CHART
Account value on 8-1-2017 | Ending value on 1-31-2018 | Expenses paid during period ended 1-31-20181 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $1,028.20 | $8.38 | 1.64% |
Hypothetical example for comparison purposes | 1,000.00 | 1,016.90 | 8.34 | 1.64% | |
Class C | Actual expenses/actual returns | 1,000.00 | 1,024.50 | 11.94 | 2.34% |
Hypothetical example for comparison purposes | 1,000.00 | 1,013.40 | 11.88 | 2.34% | |
Class I | Actual expenses/actual returns | 1,000.00 | 1,029.90 | 6.86 | 1.34% |
Hypothetical example for comparison purposes | 1,000.00 | 1,018.50 | 6.82 | 1.34% | |
Class R2 | Actual expenses/actual returns | 1,000.00 | 1,027.30 | 8.84 | 1.73% |
Hypothetical example for comparison purposes | 1,000.00 | 1,016.50 | 8.79 | 1.73% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 1,029.90 | 6.34 | 1.24% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.00 | 6.31 | 1.24% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 1,029.90 | 6.29 | 1.23% |
Hypothetical example for comparison purposes | 1,000.00 | 1,019.00 | 6.26 | 1.23% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Fund’s investments |
Shares | Value | ||||
Common stocks 39.3% | $1,891,846,444 | ||||
(Cost $1,599,810,342) | |||||
Australia 0.3% | 13,777,883 | ||||
Dexus | 486,382 | 3,733,633 | |||
Goodman Group | 368,884 | 2,407,186 | |||
Mirvac Group | 1,340,063 | 2,381,221 | |||
Scentre Group | 674,207 | 2,262,341 | |||
Stockland | 359,257 | 1,225,365 | |||
The GPT Group | 436,209 | 1,768,137 | |||
Belgium 0.6% | 27,906,429 | ||||
Anheuser-Busch InBev SA | 42,604 | 4,825,338 | |||
KBC Group NV | 150,065 | 14,428,247 | |||
Umicore SA | 164,364 | 8,652,844 | |||
Bermuda 0.0% | 1,588,400 | ||||
Marvell Technology Group, Ltd. | 68,084 | 1,588,400 | |||
Canada 0.2% | 7,952,851 | ||||
Alimentation Couche-Tard, Inc., Class B | 30,075 | 1,573,436 | |||
Canadian Apartment Properties REIT | 43,565 | 1,280,740 | |||
RioCan Real Estate Investment Trust | 186,946 | 3,661,406 | |||
SmartCentres Real Estate Investment Trust | 58,441 | 1,437,269 | |||
China 0.0% | 725,156 | ||||
Tianhe Chemicals Group, Ltd. (A)(B)(C) | 4,848,409 | 725,156 | |||
Denmark 1.0% | 50,064,010 | ||||
A.P. Moller - Maersk A/S, Series B | 3,753 | 6,699,931 | |||
Coloplast A/S, B Shares | 81,447 | 7,240,799 | |||
Danske Bank A/S | 528,171 | 21,447,385 | |||
Novo Nordisk A/S, B Shares | 158,242 | 8,782,175 | |||
Pandora A/S | 62,193 | 5,893,720 | |||
Finland 0.9% | 42,748,551 | ||||
Kesko OYJ, B Shares | 127,654 | 7,445,466 | |||
Kone OYJ, Class B | 162,533 | 9,304,333 | |||
Nokia OYJ | 1,792,618 | 8,646,826 | |||
Sampo OYJ, A Shares | 163,683 | 9,509,693 | |||
Stora Enso OYJ, R Shares | 456,664 | 7,842,233 | |||
France 4.6% | 220,741,847 | ||||
AXA SA | 479,262 | 15,761,800 | |||
BNP Paribas SA | 654,687 | 54,073,411 | |||
Cie Generale des Etablissements Michelin | 74,106 | 11,855,125 | |||
Credit Agricole SA | 871,220 | 16,425,802 |
12 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
France (continued) | |||||
Gecina SA | 23,137 | $4,520,973 | |||
Klepierre SA | 248,465 | 11,351,665 | |||
Natixis SA | 641,382 | 5,840,384 | |||
Orange SA | 561,841 | 10,152,351 | |||
Societe Generale SA | 676,154 | 39,296,656 | |||
Suez | 655,873 | 9,776,863 | |||
Thales SA | 60,054 | 6,731,711 | |||
TOTAL SA | 354,478 | 20,552,733 | |||
Unibail-Rodamco SE | 20,507 | 5,257,721 | |||
Vivendi SA | 312,107 | 9,144,652 | |||
Germany 4.1% | 198,640,132 | ||||
Allianz SE | 62,442 | 15,793,326 | |||
BASF SE | 167,965 | 19,698,673 | |||
Bayer AG | 118,720 | 15,556,848 | |||
Commerzbank AG (C) | 1,438,649 | 23,739,318 | |||
Covestro AG (A) | 51,252 | 5,901,720 | |||
Deutsche Bank AG | 2,059,853 | 37,902,878 | |||
Deutsche Post AG | 293,229 | 13,850,598 | |||
Deutsche Telekom AG | 653,393 | 11,460,608 | |||
Deutsche Wohnen SE | 84,808 | 3,834,667 | |||
E.ON SE | 758,428 | 7,971,940 | |||
LEG Immobilien AG | 21,929 | 2,474,829 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 21,132 | 4,971,685 | |||
Siemens AG | 122,410 | 18,582,462 | |||
thyssenkrupp AG | 253,856 | 7,992,719 | |||
TUI AG | 284,611 | 6,434,572 | |||
Vonovia SE | 50,155 | 2,473,289 | |||
Hong Kong 0.3% | 16,599,724 | ||||
China Metal Recycling Holdings, Ltd. (B)(C) | 1,799,400 | 0 | |||
CK Asset Holdings, Ltd. | 599,572 | 5,705,289 | |||
Hang Lung Properties, Ltd. | 419,204 | 1,104,933 | |||
Hongkong Land Holdings, Ltd. | 189,449 | 1,364,289 | |||
Link REIT | 381,001 | 3,372,022 | |||
New World Development Company, Ltd. | 858,277 | 1,383,512 | |||
Sun Hung Kai Properties, Ltd. | 212,257 | 3,669,679 | |||
Ireland 0.5% | 22,597,265 | ||||
Allegion PLC | 23,341 | 2,009,894 | |||
CRH PLC | 311,898 | 11,583,402 | |||
Ryanair Holdings PLC, ADR (C) | 73,376 | 9,003,969 | |||
Italy 3.5% | 169,508,917 | ||||
Atlantia SpA | 307,264 | 10,170,391 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 13 |
Shares | Value | ||||
Italy (continued) | |||||
Banco BPM SpA (C) | 2,848,632 | $10,843,096 | |||
Enel SpA | 2,476,279 | 15,742,790 | |||
Intesa Sanpaolo SpA | 14,964,841 | 58,799,293 | |||
Mediobanca SpA | 678,293 | 8,249,358 | |||
UniCredit SpA (C) | 2,609,206 | 57,527,094 | |||
Unione di Banche Italiane SpA | 1,577,525 | 8,176,895 | |||
Japan 0.5% | 24,682,234 | ||||
Hulic Company, Ltd. | 145,834 | 1,854,061 | |||
Japan Hotel REIT Investment Corp. | 1,076 | 798,265 | |||
Japan Retail Fund Investment Corp. | 1,034 | 2,063,831 | |||
LaSalle Logiport REIT | 783 | 844,680 | |||
Mitsubishi Estate Company, Ltd. | 213,170 | 4,100,273 | |||
Mitsui Fudosan Company, Ltd. | 186,756 | 4,918,376 | |||
Nippon Building Fund, Inc. | 438 | 2,349,770 | |||
Nomura Real Estate Master Fund, Inc. | 1,590 | 2,213,401 | |||
Orix JREIT, Inc. | 829 | 1,278,885 | |||
Sumitomo Realty & Development Company, Ltd. | 66,661 | 2,571,813 | |||
United Urban Investment Corp. | 1,068 | 1,688,879 | |||
Jersey, Channel Islands 0.2% | 7,993,336 | ||||
Phoenix Group Holdings | 736,424 | 7,993,336 | |||
Netherlands 2.3% | 109,157,290 | ||||
ABN AMRO Group NV (A) | 329,946 | 11,168,105 | |||
ING Groep NV | 2,976,621 | 58,447,123 | |||
Koninklijke KPN NV | 2,802,279 | 9,819,960 | |||
Philips Lighting NV (A) | 181,730 | 7,145,661 | |||
Royal Dutch Shell PLC, A Shares | 585,726 | 20,534,782 | |||
Wereldhave NV | 41,099 | 2,041,659 | |||
Portugal 0.1% | 4,832,409 | ||||
Galp Energia SGPS SA | 252,974 | 4,832,409 | |||
Singapore 0.1% | 4,780,413 | ||||
CapitaLand Commercial Trust | 1,838,691 | 2,618,969 | |||
City Developments, Ltd. | 214,463 | 2,161,444 | |||
Spain 4.8% | 229,851,848 | ||||
Amadeus IT Group SA | 58,540 | 4,538,568 | |||
Banco Bilbao Vizcaya Argentaria SA | 5,271,397 | 49,470,007 | |||
Banco de Sabadell SA | 3,824,502 | 9,090,164 | |||
Banco Santander SA | 13,754,227 | 102,115,409 | |||
Bankia SA | 1,605,251 | 8,125,892 | |||
Bankinter SA | 1,493,723 | 17,174,431 | |||
CaixaBank SA | 4,289,468 | 23,138,063 | |||
Hispania Activos Inmobiliarios SOCIMI SA | 58,070 | 1,215,732 |
14 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
Spain (continued) | |||||
Industria de Diseno Textil SA | 197,992 | $7,084,873 | |||
Inmobiliaria Colonial SA | 191,805 | 2,142,618 | |||
Merlin Properties Socimi SA | 325,992 | 4,693,810 | |||
Neinor Homes SA (A)(C) | 46,275 | 1,062,281 | |||
Sweden 1.1% | 52,552,194 | ||||
Assa Abloy AB, B Shares | 304,202 | 6,743,127 | |||
Castellum AB | 72,098 | 1,243,166 | |||
Fabege AB | 101,158 | 2,214,868 | |||
Hufvudstaden AB, A Shares | 73,425 | 1,181,720 | |||
Nordea Bank AB | 1,182,779 | 14,601,524 | |||
Securitas AB, B Shares | 227,408 | 4,209,457 | |||
Swedbank AB, A Shares | 589,043 | 15,064,483 | |||
Swedish Match AB | 180,075 | 7,293,849 | |||
Switzerland 2.3% | 109,778,974 | ||||
Glencore PLC (C) | 1,239,194 | 7,102,310 | |||
Nestle SA | 336,422 | 29,060,794 | |||
Novartis AG | 203,754 | 18,390,243 | |||
Partners Group Holding AG | 14,657 | 11,389,303 | |||
Roche Holding AG | 89,374 | 22,082,018 | |||
Zurich Insurance Group AG | 66,133 | 21,754,306 | |||
United Kingdom 5.3% | 256,606,357 | ||||
Anglo American PLC | 526,819 | 12,770,587 | |||
AstraZeneca PLC | 96,103 | 6,670,821 | |||
Aviva PLC | 750,448 | 5,474,837 | |||
Babcock International Group PLC | 243,308 | 2,369,939 | |||
Barratt Developments PLC | 604,730 | 5,023,379 | |||
Bellway PLC | 94,177 | 4,439,672 | |||
BP PLC | 3,182,057 | 22,702,037 | |||
British American Tobacco PLC | 328,625 | 22,460,426 | |||
BT Group PLC | 776,097 | 2,835,511 | |||
Delphi Technologies PLC (C) | 29,205 | 1,612,992 | |||
Derwent London PLC | 49,890 | 2,075,016 | |||
Direct Line Insurance Group PLC | 1,104,167 | 5,788,940 | |||
Dixons Carphone PLC | 1,157,935 | 3,219,454 | |||
DS Smith PLC | 736,900 | 5,266,802 | |||
GlaxoSmithKline PLC | 694,387 | 12,925,376 | |||
HSBC Holdings PLC | 1,799,825 | 19,201,712 | |||
Imperial Brands PLC | 229,694 | 9,452,700 | |||
Inchcape PLC | 604,411 | 6,223,238 | |||
Johnson Matthey PLC | 116,674 | 5,734,519 | |||
National Grid PLC | 614,228 | 7,037,926 | |||
Prudential PLC | 416,646 | 11,278,638 | |||
Reckitt Benckiser Group PLC | 100,083 | 9,665,023 | |||
RELX PLC | 400,454 | 8,861,993 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 15 |
Shares | Value | ||||
United Kingdom (continued) | |||||
Rio Tinto PLC | 230,136 | $12,810,062 | |||
Segro PLC | 863,815 | 7,143,929 | |||
Severn Trent PLC | 182,326 | 5,066,748 | |||
TechnipFMC PLC | 109,308 | 3,538,013 | |||
The British Land Company PLC | 282,498 | 2,681,543 | |||
The Sage Group PLC | 478,964 | 5,099,827 | |||
Unilever NV | 222,636 | 12,851,103 | |||
Vodafone Group PLC | 4,493,205 | 14,323,594 | |||
United States 6.6% | 318,760,224 | ||||
AbbVie, Inc. | 25,409 | 2,851,398 | |||
Acuity Brands, Inc. | 8,943 | 1,381,157 | |||
Adobe Systems, Inc. (C) | 17,432 | 3,482,216 | |||
Alexandria Real Estate Equities, Inc. | 74,919 | 9,716,994 | |||
Allergan PLC | 11,135 | 2,007,195 | |||
Alphabet, Inc., Class A (C) | 2,013 | 2,379,809 | |||
Alphabet, Inc., Class C (C) | 5,603 | 6,555,174 | |||
Altria Group, Inc. | 17,001 | 1,195,850 | |||
Amazon.com, Inc. (C) | 2,766 | 4,013,162 | |||
American International Group, Inc. | 55,567 | 3,551,843 | |||
American Tower Corp. | 70,386 | 10,396,012 | |||
Anthem, Inc. | 6,583 | 1,631,597 | |||
Apple, Inc. | 37,223 | 6,232,247 | |||
AvalonBay Communities, Inc. | 23,580 | 4,018,032 | |||
Bank of America Corp. | 124,278 | 3,976,896 | |||
Boston Scientific Corp. (C) | 138,427 | 3,870,419 | |||
Broadcom, Ltd. | 15,549 | 3,856,589 | |||
Burlington Stores, Inc. (C) | 8,400 | 1,022,364 | |||
Cavium, Inc. (C) | 18,808 | 1,669,774 | |||
Celanese Corp., Series A | 19,317 | 2,089,327 | |||
CenturyLink, Inc. | 43,009 | 765,990 | |||
Chevron Corp. | 30,425 | 3,813,774 | |||
Cisco Systems, Inc. | 100,032 | 4,155,329 | |||
Citigroup, Inc. | 44,304 | 3,476,978 | |||
CMS Energy Corp. | 90,531 | 4,051,262 | |||
Comcast Corp., Class A | 68,887 | 2,929,764 | |||
CSX Corp. | 53,264 | 3,023,797 | |||
DCT Industrial Trust, Inc. | 59,605 | 3,528,020 | |||
Devon Energy Corp. | 51,834 | 2,144,373 | |||
Digital Realty Trust, Inc. | 52,339 | 5,859,351 | |||
Dollar Tree, Inc. (C) | 22,320 | 2,566,800 | |||
Douglas Emmett, Inc. | 76,231 | 2,947,853 | |||
DowDuPont, Inc. | 62,850 | 4,750,203 | |||
Duke Realty Corp. | 107,873 | 2,848,926 | |||
Empire State Realty Trust, Inc., Class A | 35,098 | 686,166 | |||
EOG Resources, Inc. | 24,288 | 2,793,120 |
16 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Shares | Value | ||||
United States (continued) | |||||
Equinix, Inc. | 11,689 | $5,320,716 | |||
Equity LifeStyle Properties, Inc. | 38,551 | 3,327,722 | |||
Essex Property Trust, Inc. | 12,173 | 2,836,066 | |||
Evercore, Inc., Class A | 10,840 | 1,089,962 | |||
Extra Space Storage, Inc. | 35,915 | 2,998,184 | |||
Facebook, Inc., Class A (C) | 29,609 | 5,533,626 | |||
Federal Realty Investment Trust | 18,385 | 2,220,908 | |||
First Data Corp., Class A (C) | 60,337 | 1,067,965 | |||
First Republic Bank | 33,003 | 2,955,419 | |||
General Dynamics Corp. | 11,461 | 2,549,843 | |||
Halliburton Company | 46,448 | 2,494,258 | |||
Highwoods Properties, Inc. | 58,455 | 2,798,825 | |||
Hilton Worldwide Holdings, Inc. | 47,160 | 4,039,254 | |||
Host Hotels & Resorts, Inc. | 182,459 | 3,787,849 | |||
Hudson Pacific Properties, Inc. | 118,193 | 3,778,630 | |||
Intercontinental Exchange, Inc. | 35,228 | 2,601,236 | |||
Invitation Homes, Inc. | 152,890 | 3,438,496 | |||
Johnson & Johnson | 39,179 | 5,414,146 | |||
JPMorgan Chase & Co. | 21,627 | 2,501,595 | |||
Knight-Swift Transportation Holdings, Inc. | 30,516 | 1,519,392 | |||
Marriott International, Inc., Class A | 46,665 | 6,875,621 | |||
Mastercard, Inc., Class A | 29,935 | 5,059,015 | |||
McDonald's Corp. | 31,563 | 5,401,692 | |||
Microsoft Corp. | 37,566 | 3,569,146 | |||
Mid-America Apartment Communities, Inc. | 32,757 | 3,124,035 | |||
Mohawk Industries, Inc. (C) | 8,319 | 2,338,138 | |||
Mondelez International, Inc., Class A | 60,515 | 2,686,866 | |||
National Retail Properties, Inc. | 58,269 | 2,312,114 | |||
NextEra Energy, Inc. | 23,631 | 3,743,623 | |||
Norfolk Southern Corp. | 12,994 | 1,960,535 | |||
Owens Corning | 16,933 | 1,574,261 | |||
PepsiCo, Inc. | 21,255 | 2,556,977 | |||
Pfizer, Inc. | 102,157 | 3,783,895 | |||
Philip Morris International, Inc. | 14,306 | 1,534,032 | |||
Prologis, Inc. | 156,101 | 10,163,736 | |||
Public Storage | 13,630 | 2,668,209 | |||
Raytheon Company | 12,175 | 2,543,845 | |||
Realty Income Corp. | 42,464 | 2,258,660 | |||
Regency Centers Corp. | 56,211 | 3,536,234 | |||
Simon Property Group, Inc. | 49,975 | 8,164,416 | |||
SL Green Realty Corp. | 23,472 | 2,359,405 | |||
Steel Dynamics, Inc. | 28,630 | 1,299,802 | |||
SunTrust Banks, Inc. | 27,738 | 1,961,077 | |||
Taubman Centers, Inc. | 19,295 | 1,189,537 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 17 |
Shares | Value | ||||
United States (continued) | |||||
The Boeing Company | 4,994 | $1,769,724 | |||
The Charles Schwab Corp. | 56,450 | 3,011,043 | |||
The Goldman Sachs Group, Inc. | 13,907 | 3,725,546 | |||
The Goodyear Tire & Rubber Company | 48,874 | 1,701,793 | |||
The Home Depot, Inc. | 17,290 | 3,473,561 | |||
The Kraft Heinz Company | 42,778 | 3,353,367 | |||
The TJX Companies, Inc. | 19,280 | 1,548,570 | |||
Time Warner, Inc. | 16,997 | 1,620,664 | |||
UnitedHealth Group, Inc. | 21,424 | 5,072,775 | |||
Ventas, Inc. | 74,663 | 4,178,888 | |||
Verizon Communications, Inc. | 38,606 | 2,087,426 | |||
Vertex Pharmaceuticals, Inc. (C) | 9,111 | 1,520,353 | |||
Vornado Realty Trust | 67,039 | 4,805,356 | |||
Welltower, Inc. | 127,652 | 7,655,290 | |||
Yum! Brands, Inc. | 24,319 | 2,057,144 | |||
Rate (%) | Maturity date | Par value^ | Value | ||
U.S. Government and Agency obligations 11.4% | $550,073,974 | ||||
(Cost $541,767,940) | |||||
United States 11.4% | 550,073,974 | ||||
U.S. Treasury | |||||
Treasury Inflation Protected Security | 0.625 | 02-15-43 | 32,052,800 | 33,126,343 | |
Treasury Inflation Protected Security | 0.750 | 02-15-42 | 50,489,900 | 54,791,968 | |
Treasury Inflation Protected Security | 0.750 | 02-15-45 | 60,457,500 | 62,610,017 | |
Treasury Inflation Protected Security | 0.875 | 02-15-47 | 37,700,800 | 39,321,748 | |
Treasury Inflation Protected Security | 1.000 | 02-15-46 | 54,868,300 | 60,047,624 | |
Treasury Inflation Protected Security | 1.375 | 02-15-44 | 32,079,000 | 38,613,966 | |
Treasury Inflation Protected Security | 2.125 | 02-15-40 | 27,996,700 | 41,005,605 | |
Treasury Inflation Protected Security | 2.125 | 02-15-41 | 24,315,700 | 35,393,963 | |
Treasury Inflation Protected Security (D) | 2.500 | 01-15-29 | 24,645,300 | 33,843,196 | |
Treasury Inflation Protected Security (D) | 3.375 | 04-15-32 | 15,338,900 | 29,002,106 | |
Treasury Inflation Protected Security (D) | 3.625 | 04-15-28 | 9,837,400 | 19,409,850 | |
Treasury Inflation Protected Security (D) | 3.875 | 04-15-29 | 51,031,600 | 102,907,588 | |
Foreign government obligations 7.4% | $355,014,413 | ||||
(Cost $338,469,617) | |||||
Argentina 0.2% | 10,535,205 | ||||
Argentina POM Politica Monetaria Bond (E) | 27.277 | 06-21-20 | ARS | 123,646,128 | 7,141,060 |
Provincia de Buenos Aires Bond (E) | 25.361 | 05-31-22 | ARS | 62,226,000 | 3,394,145 |
Brazil 0.9% | 41,727,512 | ||||
Federative Republic of Brazil |
18 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Brazil (continued) | |||||
Note | 6.000 | 05-15-45 | BRL | 4,563,000 | $4,975,794 |
Note | 6.000 | 08-15-50 | BRL | 3,992,000 | 4,460,209 |
Note | 10.000 | 01-01-23 | BRL | 90,587,000 | 29,502,759 |
Note | 10.000 | 01-01-25 | BRL | 8,611,000 | 2,788,750 |
Colombia 0.6% | 28,658,927 | ||||
Republic of Colombia | |||||
Bond | 7.000 | 05-04-22 | COP | 21,211,200,000 | 7,816,498 |
Bond | 7.750 | 09-18-30 | COP | 19,358,000,000 | 7,443,110 |
Bond | 10.000 | 07-24-24 | COP | 31,508,500,000 | 13,399,319 |
Czech Republic 0.6% | 27,273,902 | ||||
Czech Republic | |||||
Bond | 0.450 | 10-25-23 | CZK | 351,770,000 | 16,445,113 |
Bond | 1.000 | 06-26-26 | CZK | 64,100,000 | 2,977,774 |
Bond | 2.400 | 09-17-25 | CZK | 151,730,000 | 7,851,015 |
Dominican Republic 0.1% | 3,982,153 | ||||
Government of Dominican Republic Bond (A) | 11.250 | 02-05-27 | DOP | 173,600,000 | 3,982,153 |
Indonesia 1.1% | 52,246,009 | ||||
Republic of Indonesia | |||||
Bond | 7.000 | 05-15-22 | IDR | 107,313,000,000 | 8,424,814 |
Bond | 7.000 | 05-15-27 | IDR | 188,206,000,000 | 14,689,866 |
Bond | 7.500 | 08-15-32 | IDR | 101,089,000,000 | 8,035,415 |
Bond | 8.250 | 07-15-21 | IDR | 39,994,000,000 | 3,239,515 |
Bond | 8.250 | 05-15-36 | IDR | 114,621,000,000 | 9,762,480 |
Bond | 8.375 | 09-15-26 | IDR | 94,649,000,000 | 8,093,919 |
Malaysia 0.7% | 32,619,854 | ||||
Government of Malaysia | |||||
Bond | 3.492 | 03-31-20 | MYR | 13,485,000 | 3,468,272 |
Bond | 3.580 | 09-28-18 | MYR | 24,463,000 | 6,289,603 |
Bond | 3.654 | 10-31-19 | MYR | 16,825,000 | 4,342,583 |
Bond | 3.759 | 03-15-19 | MYR | 7,273,000 | 1,873,589 |
Bond | 4.059 | 09-30-24 | MYR | 22,395,000 | 5,781,705 |
Bond | 4.160 | 07-15-21 | MYR | 13,026,000 | 3,409,144 |
Bond | 4.181 | 07-15-24 | MYR | 11,972,000 | 3,118,338 |
Bond | 4.378 | 11-29-19 | MYR | 16,591,000 | 4,336,620 |
Mexico 0.9% | 45,163,636 | ||||
Government of Mexico | |||||
Bond | 5.000 | 12-11-19 | MXN | 292,951,400 | 15,050,399 |
Bond | 6.500 | 06-09-22 | MXN | 284,077,700 | 14,688,382 |
Bond | 7.500 | 06-03-27 | MXN | 114,442,700 | 6,094,715 |
Bond | 8.000 | 11-07-47 | MXN | 129,910,600 | 7,123,750 |
Bond | 10.000 | 12-05-24 | MXN | 36,266,700 | 2,206,390 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 19 |
Rate (%) | Maturity date | Par value^ | Value | ||
Peru 0.1% | $8,006,942 | ||||
Republic of Peru Bond | 8.200 | 08-12-26 | PEN | 20,302,000 | 8,006,942 |
Poland 0.8% | 38,274,635 | ||||
Republic of Poland | |||||
Bond | 1.500 | 04-25-20 | PLN | 44,131,000 | 13,113,585 |
Bond | 3.250 | 07-25-19 | PLN | 21,907,000 | 6,704,423 |
Bond | 5.250 | 10-25-20 | PLN | 46,837,000 | 15,215,935 |
Bond | 5.500 | 10-25-19 | PLN | 10,171,000 | 3,240,692 |
South Africa 0.7% | 34,062,365 | ||||
Republic of South Africa | |||||
Bond | 7.750 | 02-28-23 | ZAR | 126,829,000 | 10,714,191 |
Bond | 8.000 | 01-31-30 | ZAR | 79,671,000 | 6,257,088 |
Bond | 8.250 | 03-31-32 | ZAR | 52,307,000 | 4,095,725 |
Bond | 8.750 | 02-28-48 | ZAR | 114,332,000 | 8,892,730 |
Bond | 9.000 | 01-31-40 | ZAR | 51,337,000 | 4,102,631 |
Thailand 0.6% | 27,703,602 | ||||
Kingdom of Thailand | |||||
Bond | 1.250 | 03-12-28 | THB | 534,666,000 | 17,242,561 |
Bond | 3.650 | 12-17-21 | THB | 120,007,000 | 4,116,133 |
Bond | 3.875 | 06-13-19 | THB | 192,114,000 | 6,344,908 |
Uruguay 0.1% | 4,759,671 | ||||
Republic of Uruguay | |||||
Bond | 4.375 | 12-15-28 | UYU | 28,375,000 | 1,821,295 |
Bond (A) | 9.875 | 06-20-22 | UYU | 80,465,000 | 2,938,376 |
Corporate bonds 13.4% | $644,205,238 | ||||
(Cost $607,469,709) | |||||
Australia 0.2% | 10,133,381 | ||||
APT Pipelines, Ltd. | 1.375 | 03-22-22 | EUR | 260,000 | 331,585 |
APT Pipelines, Ltd. | 2.000 | 03-22-27 | EUR | 700,000 | 888,101 |
Australia Pacific Airports Melbourne Pty, Ltd. | 1.750 | 10-15-24 | EUR | 400,000 | 518,249 |
BHP Billiton Finance USA, Ltd. | 5.000 | 09-30-43 | 982,000 | 1,188,089 | |
BHP Billiton Finance, Ltd. (6.500% to 10-22-22, then 5 Year British Pound Swap Rate + 4.817%) | 6.500 | 10-22-77 | GBP | 710,000 | 1,186,425 |
CNOOC Curtis Funding No 1 Pty, Ltd. | 2.750 | 10-03-20 | EUR | 650,000 | 856,839 |
Commonwealth Bank of Australia (1.936% to 10-3-24, then 5 Year Euro Swap Rate + 1.450%) | 1.936 | 10-03-29 | EUR | 900,000 | 1,131,179 |
FMG Resources August 2006 Pty, Ltd. (A) | 4.750 | 05-15-22 | 1,023,000 | 1,038,345 | |
National Australia Bank, Ltd. (2.000% to 11-12-19, then 5 Year Euro Swap Rate + 1.650%) | 2.000 | 11-12-24 | EUR | 964,000 | 1,229,707 |
Rio Tinto Finance USA, Ltd. | 5.200 | 11-02-40 | 205,000 | 246,795 | |
Scentre Group Trust 1 | 1.375 | 03-22-23 | EUR | 400,000 | 512,783 |
20 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Scentre Group Trust 1 | 1.500 | 07-16-20 | EUR | 500,000 | $638,963 |
Scentre Group Trust 2 | 3.250 | 09-11-23 | EUR | 260,000 | 366,321 |
Austria 0.0% | 384,655 | ||||
UniCredit Bank Austria AG | 2.500 | 05-27-19 | EUR | 300,000 | 384,655 |
Belgium 0.2% | 7,183,149 | ||||
Anheuser-Busch InBev SA | 0.875 | 03-17-22 | EUR | 500,000 | 632,058 |
Anheuser-Busch InBev SA | 1.150 | 01-22-27 | EUR | 500,000 | 610,320 |
Anheuser-Busch InBev SA | 1.500 | 03-17-25 | EUR | 1,100,000 | 1,409,544 |
Anheuser-Busch InBev SA | 2.000 | 03-17-28 | EUR | 2,100,000 | 2,731,132 |
Anheuser-Busch InBev SA | 2.750 | 03-17-36 | EUR | 400,000 | 535,117 |
Belfius Bank SA | 2.250 | 09-26-18 | EUR | 600,000 | 757,002 |
KBC Group NV | 1.000 | 04-26-21 | EUR | 400,000 | 507,976 |
Brazil 0.0% | 390,156 | ||||
Petrobras Global Finance BV | 6.125 | 01-17-22 | 366,000 | 390,156 | |
Canada 0.4% | 19,647,992 | ||||
Air Canada 2013-1 Class B Pass Through Trust (A) | 5.375 | 05-15-21 | 501,514 | 524,709 | |
Alimentation Couche-Tard, Inc. (A) | 4.500 | 07-26-47 | 422,000 | 429,170 | |
Burlington Resources Finance Company | 7.200 | 08-15-31 | 161,000 | 214,637 | |
Clearwater Seafoods, Inc. (A) | 6.875 | 05-01-25 | 1,297,000 | 1,322,940 | |
Enbridge, Inc. | 5.500 | 12-01-46 | 295,000 | 352,274 | |
First Quantum Minerals, Ltd. (A) | 7.000 | 02-15-21 | 340,000 | 351,900 | |
First Quantum Minerals, Ltd. (A) | 7.250 | 05-15-22 | 496,000 | 514,600 | |
First Quantum Minerals, Ltd. (A) | 7.250 | 04-01-23 | 761,000 | 805,709 | |
First Quantum Minerals, Ltd. (A) | 7.500 | 04-01-25 | 1,365,000 | 1,462,325 | |
Great-West Lifeco, Inc. | 2.500 | 04-18-23 | EUR | 1,060,000 | 1,434,949 |
Mattamy Group Corp. (A) | 6.875 | 12-15-23 | 1,898,000 | 2,007,135 | |
Mercer International, Inc. (A) | 5.500 | 01-15-26 | 298,000 | 301,725 | |
Mercer International, Inc. | 6.500 | 02-01-24 | 468,000 | 497,250 | |
Mercer International, Inc. | 7.750 | 12-01-22 | 357,000 | 380,002 | |
NOVA Chemicals Corp. (A) | 4.875 | 06-01-24 | 726,000 | 730,538 | |
NOVA Chemicals Corp. (A) | 5.250 | 08-01-23 | 1,691,000 | 1,738,179 | |
Open Text Corp. (A) | 5.625 | 01-15-23 | 885,000 | 919,294 | |
Open Text Corp. (A) | 5.875 | 06-01-26 | 709,000 | 746,223 | |
Rogers Communications, Inc. | 5.000 | 03-15-44 | 1,058,000 | 1,190,443 | |
Rogers Communications, Inc. | 5.450 | 10-01-43 | 502,000 | 596,063 | |
Royal Bank of Canada | 4.650 | 01-27-26 | 488,000 | 517,749 | |
Teck Resources, Ltd. | 3.750 | 02-01-23 | 490,000 | 491,225 | |
Teck Resources, Ltd. | 4.750 | 01-15-22 | 500,000 | 517,500 | |
Total Capital Canada, Ltd. | 1.125 | 03-18-22 | EUR | 300,000 | 384,270 |
TransCanada PipeLines, Ltd. | 6.100 | 06-01-40 | 70,000 | 91,366 | |
TransCanada PipeLines, Ltd. | 7.625 | 01-15-39 | 755,000 | 1,125,817 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 21 |
Rate (%) | Maturity date | Par value^ | Value | ||
Cayman Islands 0.1% | $6,785,440 | ||||
China Overseas Land International Cayman, Ltd. | 1.750 | 07-15-19 | EUR | 640,000 | 809,685 |
CK Hutchison Finance 16, Ltd. | 1.250 | 04-06-23 | EUR | 353,000 | 446,435 |
IPIC GMTN, Ltd. | 2.375 | 05-30-18 | EUR | 100,000 | 124,977 |
IPIC GMTN, Ltd. | 5.875 | 03-14-21 | EUR | 830,000 | 1,203,264 |
Park Aerospace Holdings, Ltd. (A) | 5.250 | 08-15-22 | 650,000 | 641,063 | |
Park Aerospace Holdings, Ltd. (A) | 5.500 | 02-15-24 | 1,655,000 | 1,637,416 | |
Shelf Drilling Holdings, Ltd. (A) | 8.250 | 02-15-25 | 1,028,000 | 1,028,000 | |
Tecnoglass, Inc. (A) | 8.200 | 01-31-22 | 840,000 | 894,600 | |
Denmark 0.1% | 5,544,602 | ||||
Danske Bank A/S (3.875% to 10-4-18, then 5 Year Euro Swap Rate + 2.625%) | 3.875 | 10-04-23 | EUR | 200,000 | 254,512 |
Nykredit Realkredit A/S (2.750% to 11-17-22, then 5 Year Euro Swap Rate + 2.200%) | 2.750 | 11-17-27 | EUR | 450,000 | 599,564 |
Nykredit Realkredit A/S (4.000% to 6-3-21, then 5 Year Euro Swap Rate + 2.850%) | 4.000 | 06-03-36 | EUR | 400,000 | 544,529 |
Nykredit Realkredit A/S (6.250% to 10-26-20, then 5 Year Euro Swap Rate + 5.989%) (F) | 6.250 | 10-26-20 | EUR | 800,000 | 1,100,765 |
Orsted A/S (2.250% to 11-24-24, then 5 Year Euro Swap Rate + 1.899%) | 2.250 | 12-31-99 | EUR | 400,000 | 504,405 |
Orsted A/S | 4.875 | 01-12-32 | GBP | 181,000 | 318,303 |
Orsted A/S (4.875% to 7-8-18, then 5 Year Euro Swap Rate + 3.800%) | 4.875 | 07-08-99 | EUR | 1,350,000 | 1,709,038 |
Orsted A/S (6.250% to 6-26-23, then 5 Year Euro Swap Rate + 4.750%) | 6.250 | 06-26-99 | EUR | 336,000 | 513,486 |
France 0.8% | 38,555,513 | ||||
Aeroports de Paris | 1.500 | 07-24-23 | EUR | 200,000 | 259,812 |
Aeroports de Paris | 1.500 | 04-07-25 | EUR | 300,000 | 387,168 |
Air Liquide Finance SA | 0.750 | 06-13-24 | EUR | 800,000 | 997,881 |
APRR SA | 1.125 | 01-15-21 | EUR | 500,000 | 636,736 |
APRR SA | 1.125 | 01-09-26 | EUR | 1,200,000 | 1,495,991 |
APRR SA | 1.875 | 01-15-25 | EUR | 600,000 | 789,762 |
Autoroutes du Sud de la France SA | 2.950 | 01-17-24 | EUR | 100,000 | 139,872 |
Autoroutes du Sud de la France SA | 7.375 | 03-20-19 | EUR | 450,000 | 605,662 |
Banque Federative du Credit Mutuel SA | 0.250 | 06-14-19 | EUR | 300,000 | 374,626 |
Banque Federative du Credit Mutuel SA | 3.000 | 11-28-23 | EUR | 300,000 | 420,900 |
BNP Paribas SA | 0.750 | 11-11-22 | EUR | 300,000 | 376,523 |
BNP Paribas SA | 2.250 | 01-13-21 | EUR | 400,000 | 527,398 |
BNP Paribas SA | 2.250 | 01-11-27 | EUR | 400,000 | 516,400 |
BNP Paribas SA (2.875% to 3-20-21, then 5 Year Euro Swap Rate + 1.650%) | 2.875 | 03-20-26 | EUR | 100,000 | 132,704 |
BPCE SA | 0.625 | 04-20-20 | EUR | 300,000 | 377,377 |
BPCE SA | 4.625 | 07-18-23 | EUR | 100,000 | 147,593 |
22 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
France (continued) | |||||
Carrefour SA | 0.750 | 04-26-24 | EUR | 450,000 | $550,609 |
Cie Financiere et Industrielle des Autoroutes SA | 5.000 | 05-24-21 | EUR | 100,000 | 143,603 |
Coentreprise de Transport d'electricite SA | 1.500 | 07-29-28 | EUR | 800,000 | 990,113 |
Coentreprise de Transport d'electricite SA | 2.125 | 07-29-32 | EUR | 200,000 | 254,317 |
Credit Agricole SA | 1.250 | 04-14-26 | EUR | 400,000 | 502,014 |
Credit Agricole SA (6.500% to 6-23-21, then 5 Year Euro Swap Rate + 5.120%) (F) | 6.500 | 06-23-21 | EUR | 400,000 | 569,339 |
Credit Agricole SA (7.875% to 1-23-24, then 5 Year U.S. Swap Rate + 4.898%) (A)(F) | 7.875 | 01-23-24 | 680,000 | 772,243 | |
Electricite de France SA (A) | 3.625 | 10-13-25 | 506,000 | 510,891 | |
Electricite de France SA (4.125% to 1-22-22, then 8 Year Euro Swap Rate + 2.441%) (F) | 4.125 | 01-22-22 | EUR | 900,000 | 1,201,207 |
Electricite de France SA (4.250% to 1-29-20, then 7 Year Euro Swap Rate + 3.021%) (F) | 4.250 | 01-29-20 | EUR | 100,000 | 132,071 |
Electricite de France SA | 4.625 | 04-26-30 | EUR | 450,000 | 717,322 |
Electricite de France SA | 5.625 | 02-21-33 | EUR | 390,000 | 693,675 |
Electricite de France SA | 6.125 | 06-02-34 | GBP | 250,000 | 484,605 |
Eutelsat SA | 5.000 | 01-14-19 | EUR | 100,000 | 130,110 |
Holding d'Infrastructures de Transport SAS | 2.250 | 03-24-25 | EUR | 400,000 | 534,149 |
Infra Park SAS | 2.125 | 04-16-25 | EUR | 200,000 | 263,969 |
La Banque Postale SA (2.750% to 4-23-21, then 5 Year Euro Swap Rate + 1.520%) | 2.750 | 04-23-26 | EUR | 600,000 | 789,993 |
La Banque Postale SA (2.750% to 11-19-22, then 5 Year Euro Swap Rate + 2.250%) | 2.750 | 11-19-27 | EUR | 200,000 | 266,475 |
La Financiere Atalian SAS | 4.000 | 05-15-24 | EUR | 500,000 | 654,183 |
Mercialys SA | 1.787 | 03-31-23 | EUR | 200,000 | 257,686 |
Orange SA (5.000% to 10-1-26, then 5 Year Euro Swap Rate + 3.990%) (F) | 5.000 | 10-01-26 | EUR | 550,000 | 808,331 |
Orange SA | 9.000 | 03-01-31 | 1,228,000 | 1,837,189 | |
RCI Banque SA | 0.625 | 11-10-21 | EUR | 1,200,000 | 1,499,444 |
RCI Banque SA | 1.375 | 11-17-20 | EUR | 100,000 | 128,261 |
RCI Banque SA | 1.625 | 04-11-25 | EUR | 600,000 | 765,472 |
RTE Reseau de Transport d'Electricite SA | 1.000 | 10-19-26 | EUR | 1,300,000 | 1,588,392 |
RTE Reseau de Transport d'Electricite SA | 1.625 | 11-27-25 | EUR | 500,000 | 645,926 |
Sanofi | 2.500 | 11-14-23 | EUR | 400,000 | 549,024 |
SFR Group SA | 5.375 | 05-15-22 | EUR | 200,000 | 253,776 |
SFR Group SA (A) | 6.000 | 05-15-22 | 838,000 | 819,648 | |
Societe Fonciere Lyonnaise SA | 1.875 | 11-26-21 | EUR | 200,000 | 260,173 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 23 |
Rate (%) | Maturity date | Par value^ | Value | ||
France (continued) | |||||
Societe Generale Sa | 1.375 | 01-13-28 | EUR | 1,000,000 | $1,210,072 |
Societe Generale SA (2.500% to 9-16-21, then 5 Year Euro Swap Rate + 1.830%) | 2.500 | 09-16-26 | EUR | 500,000 | 656,642 |
Societe Generale SA (6.750% to 4-7-21, then 5 Year Euro Swap Rate + 5.538%) (F) | 6.750 | 04-07-21 | EUR | 560,000 | 791,741 |
Societe Generale SA (8.250% to 11-29-18, then 5 Year U.S. Swap Rate + 6.394%) (F) | 8.250 | 11-29-18 | 350,000 | 364,286 | |
Societe Generale SA (9.375% to 9-4-19, then 3 month EURIBOR + 8.901%) (F) | 9.375 | 09-04-19 | EUR | 200,000 | 283,564 |
SPCM SA | 2.875 | 06-15-23 | EUR | 1,200,000 | 1,518,315 |
SPCM SA (A) | 4.875 | 09-15-25 | 750,000 | 751,875 | |
Suez | 1.750 | 09-10-25 | EUR | 200,000 | 260,995 |
Total Capital International SA | 0.250 | 07-12-23 | EUR | 200,000 | 244,725 |
TOTAL SA (2.250% to 2-26-21, then 5 Year Euro Swap Rate + 1.861%) (F) | 2.250 | 02-26-21 | EUR | 1,200,000 | 1,557,093 |
Transport et Infrastructures Gaz France SA | 2.200 | 08-05-25 | EUR | 700,000 | 926,771 |
Transport et Infrastructures Gaz France SA | 4.339 | 07-07-21 | EUR | 500,000 | 701,786 |
Unibail-Rodamco SE | 1.375 | 03-09-26 | EUR | 500,000 | 632,968 |
Veolia Environnement SA | 1.496 | 11-30-26 | EUR | 700,000 | 894,065 |
Germany 0.8% | 36,634,163 | ||||
Aareal Bank AG (7.625% to 4-30-20, then 1 Year Euro Swap Rate + 7.180%) (F) | 7.625 | 04-30-20 | EUR | 1,000,000 | 1,365,425 |
Aareal Bank AG (4.250% to 3-18-21, then 5 Year Euro Swap Rate + 2.900%) | 4.250 | 03-18-26 | EUR | 650,000 | 890,536 |
Adler Pelzer Holding GmbH | 4.125 | 04-01-24 | EUR | 515,000 | 669,387 |
Allianz SE (3.375% to 9-18-24, then 10 Year EURIBOR Swap Rate + 3.200%) (F) | 3.375 | 09-18-24 | EUR | 300,000 | 408,886 |
Allianz SE (4.750% to 10-24-23, then 3 month EURIBOR + 3.600%) (F) | 4.750 | 10-24-23 | EUR | 700,000 | 1,020,132 |
Allianz SE (5.625% to 10-17-22, then 3 month EURIBOR + 5.000%) | 5.625 | 10-17-42 | EUR | 200,000 | 300,699 |
Bundesrepublik Deutschland Bundesanleihe | 0.500 | 08-15-27 | EUR | 820,000 | 1,004,443 |
Commerzbank AG | 4.000 | 03-23-26 | EUR | 175,000 | 249,940 |
Commerzbank AG | 7.750 | 03-16-21 | EUR | 200,000 | 302,583 |
Daimler AG | 1.400 | 01-12-24 | EUR | 900,000 | 1,160,136 |
Deutsche Bank AG | 1.250 | 09-08-21 | EUR | 600,000 | 761,573 |
Deutsche Post AG | 1.000 | 12-13-27 | EUR | 1,000,000 | 1,209,865 |
Deutsche Telekom International Finance BV | 1.500 | 04-03-28 | EUR | 950,000 | 1,182,650 |
24 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Germany (continued) | |||||
Deutsche Telekom International Finance BV (A) | 4.875 | 03-06-42 | 304,000 | $338,747 | |
Deutsche Telekom International Finance BV | 8.750 | 06-15-30 | 227,000 | 332,374 | |
E.ON SE | 1.625 | 05-22-29 | EUR | 600,000 | 745,390 |
IHO Verwaltungs GmbH (2.750% Cash or 3.500% PIK) | 2.750 | 09-15-21 | EUR | 900,000 | 1,144,779 |
IHO Verwaltungs GmbH (3.250% Cash or 4.000% PIK) | 3.250 | 09-15-23 | EUR | 650,000 | 842,207 |
IHO Verwaltungs GmbH (3.750% Cash or 4.500% PIK) | 3.750 | 09-15-26 | EUR | 250,000 | 334,353 |
KFW | 0.125 | 01-15-24 | EUR | 957,000 | 1,170,726 |
KFW | 0.125 | 10-04-24 | EUR | 1,050,000 | 1,272,988 |
KFW | 0.625 | 02-22-27 | EUR | 4,097,000 | 5,012,136 |
Nidda Healthcare Holding AG | 3.500 | 09-30-24 | EUR | 790,000 | 987,859 |
RWE AG (7.000% to 3-20-19, then 5 Year British Pound Swap Rate + 5.100%) (F) | 7.000 | 03-20-19 | GBP | 600,000 | 895,570 |
Unitymedia Hessen GmbH & Company KG | 3.500 | 01-15-27 | EUR | 150,000 | 193,481 |
Unitymedia Hessen GmbH & Company KG | 4.000 | 01-15-25 | EUR | 1,750,000 | 2,294,385 |
Unitymedia Hessen GmbH & Company KG | 6.250 | 01-15-29 | EUR | 200,000 | 278,791 |
Volkswagen International Finance NV | 0.500 | 03-30-21 | EUR | 500,000 | 624,368 |
Volkswagen International Finance NV | 1.875 | 03-30-27 | EUR | 900,000 | 1,139,208 |
Volkswagen International Finance NV (2.700% to 12-14-22, then 5 Year Euro Swap Rate + 2.540%) (F) | 2.700 | 12-14-22 | EUR | 600,000 | 772,207 |
Volkswagen International Finance NV | 3.250 | 01-21-19 | EUR | 200,000 | 256,308 |
Volkswagen International Finance NV (3.750% to 3-24-21, then 7 Year Euro Swap Rate + 2.534%) (F) | 3.750 | 03-24-21 | EUR | 550,000 | 735,641 |
Volkswagen International Finance NV (3.875% to 6-14-27, then 10 Year Euro Swap Rate + 3.370%) (F) | 3.875 | 06-14-27 | EUR | 800,000 | 1,049,116 |
Volkswagen International Finance NV (4.625% to 3-24-26, then 12 Year Euro Swap Rate + 2.967%) (F) | 4.625 | 03-24-26 | EUR | 1,500,000 | 2,110,772 |
Volkswagen Leasing GmbH | 2.625 | 01-15-24 | EUR | 464,000 | 627,799 |
Volkswagen Leasing GmbH | 3.250 | 05-10-18 | EUR | 200,000 | 250,639 |
Vonovia Finance BV | 2.250 | 12-15-23 | EUR | 600,000 | 800,346 |
Vonovia Finance BV | 3.125 | 07-25-19 | EUR | 200,000 | 260,230 |
Vonovia Finance BV (4.000% to 12-17-21, then 5 Year Euro Swap Rate + 3.390%) (F) | 4.000 | 12-17-21 | EUR | 1,200,000 | 1,637,488 |
Hong Kong 0.0% | 1,344,028 | ||||
Hutchison Whampoa Finance 14, Ltd. | 1.375 | 10-31-21 | EUR | 1,047,000 | 1,344,028 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 25 |
Rate (%) | Maturity date | Par value^ | Value | ||
Ireland 0.3% | $15,254,598 | ||||
AerCap Ireland Capital, Ltd. | 4.250 | 07-01-20 | 1,440,000 | 1,482,053 | |
Ardagh Packaging Finance PLC | 2.750 | 03-15-24 | EUR | 1,230,000 | 1,585,685 |
Ardagh Packaging Finance PLC (A) | 4.250 | 09-15-22 | 200,000 | 201,154 | |
Ardagh Packaging Finance PLC (A) | 4.625 | 05-15-23 | 200,000 | 202,000 | |
Ardagh Packaging Finance PLC (A) | 7.250 | 05-15-24 | 208,000 | 223,538 | |
Cloverie PLC | 1.750 | 09-16-24 | EUR | 400,000 | 522,543 |
ESB Finance DAC | 2.125 | 06-08-27 | EUR | 200,000 | 264,201 |
ESB Finance DAC | 3.494 | 01-12-24 | EUR | 1,172,000 | 1,671,673 |
FCA Bank SpA | 2.000 | 10-23-19 | EUR | 1,400,000 | 1,797,466 |
FCA Bank SpA | 2.625 | 04-17-19 | EUR | 330,000 | 422,813 |
Fly Leasing, Ltd. | 5.250 | 10-15-24 | 878,000 | 882,390 | |
Fly Leasing, Ltd. | 6.375 | 10-15-21 | 558,000 | 581,715 | |
GE Capital European Funding Unlimited Company | 0.800 | 01-21-22 | EUR | 773,000 | 971,142 |
GE Capital European Funding Unlimited Company | 4.625 | 02-22-27 | EUR | 200,000 | 314,723 |
GE Capital International Funding Company Unlimited Company | 4.418 | 11-15-35 | 910,000 | 939,313 | |
James Hardie International Finance DAC (A) | 4.750 | 01-15-25 | 921,000 | 932,586 | |
James Hardie International Finance DAC (A) | 5.000 | 01-15-28 | 408,000 | 412,080 | |
Smurfit Kappa Acquisitions Unlimited Company | 4.125 | 01-30-20 | EUR | 615,000 | 821,710 |
Smurfit Kappa Acquisitions Unlimited Company | 5.125 | 09-15-18 | EUR | 370,000 | 467,555 |
Willow No. 2 Ireland PLC for Zurich Insurance Company, Ltd. | 3.375 | 06-27-22 | EUR | 400,000 | 558,258 |
Israel 0.0% | 303,931 | ||||
Teva Pharmaceutical Finance IV BV | 2.875 | 04-15-19 | EUR | 240,000 | 303,931 |
Italy 0.2% | 8,451,990 | ||||
Atlantia SpA | 1.875 | 07-13-27 | EUR | 500,000 | 626,633 |
Intesa Sanpaolo SpA | 1.125 | 03-04-22 | EUR | 200,000 | 253,455 |
Intesa Sanpaolo SpA | 3.000 | 01-28-19 | EUR | 500,000 | 639,968 |
Intesa Sanpaolo SpA | 4.375 | 10-15-19 | EUR | 600,000 | 800,371 |
Intesa Sanpaolo SpA (7.000% to 1-19-21, then 5 Year Euro Swap Rate + 6.884%) (F) | 7.000 | 01-19-21 | EUR | 1,050,000 | 1,459,693 |
Telecom Italia SpA (A) | 5.303 | 05-30-24 | 1,421,000 | 1,500,931 | |
UniCredit SpA (4.375% to 1-3-22, then 5 Year Euro Swap Rate + 4.316%) | 4.375 | 01-03-27 | EUR | 300,000 | 410,885 |
UniCredit SpA | 5.650 | 07-24-18 | EUR | 300,000 | 382,786 |
UniCredit SpA | 5.650 | 08-24-18 | EUR | 300,000 | 384,343 |
UniCredit SpA | 6.950 | 10-31-22 | EUR | 1,090,000 | 1,681,413 |
Wind Tre SpA | 2.625 | 01-20-23 | EUR | 270,000 | 311,512 |
26 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Jamaica 0.0% | $620,810 | ||||
Digicel, Ltd. | 6.000 | 04-15-21 | 412,000 | 407,880 | |
Digicel, Ltd. (A) | 6.750 | 03-01-23 | 214,000 | 212,930 | |
Japan 0.1% | 2,241,805 | ||||
Mitsubishi UFJ Financial Group, Inc. | 0.680 | 01-26-23 | EUR | 600,000 | 742,735 |
Sumitomo Mitsui Banking Corp. | 1.000 | 01-19-22 | EUR | 600,000 | 760,082 |
Sumitomo Mitsui Financial Group, Inc. | 0.934 | 10-11-24 | EUR | 600,000 | 738,988 |
Jersey, Channel Islands 0.1% | 3,350,282 | ||||
AA Bond Company, Ltd. | 2.875 | 07-31-43 | GBP | 1,055,000 | 1,504,272 |
CPUK Finance, Ltd. | 4.250 | 02-28-47 | GBP | 700,000 | 1,014,736 |
Kennedy Wilson Europe Real Estate PLC | 3.950 | 06-30-22 | GBP | 560,000 | 831,274 |
Luxembourg 0.3% | 14,785,245 | ||||
Allergan Funding SCS | 4.750 | 03-15-45 | 235,000 | 248,026 | |
Altice Financing SA | 5.250 | 02-15-23 | EUR | 450,000 | 578,227 |
Altice Finco SA (A) | 8.125 | 01-15-24 | 325,000 | 334,750 | |
Altice Luxembourg SA | 7.250 | 05-15-22 | EUR | 790,000 | 961,214 |
Altice Luxembourg SA (A) | 7.750 | 05-15-22 | 1,170,000 | 1,123,200 | |
ArcelorMittal | 6.125 | 06-01-25 | 1,362,000 | 1,549,275 | |
Arena Luxembourg Finance Sarl | 2.875 | 11-01-24 | EUR | 525,000 | 669,632 |
Cabot Financial Luxembourg SA | 6.500 | 04-01-21 | GBP | 100,000 | 143,896 |
Cabot Financial Luxembourg SA | 8.375 | 08-01-20 | GBP | 250,000 | 368,273 |
Dufry Finance SCA | 4.500 | 08-01-23 | EUR | 375,000 | 488,900 |
eDreams ODIGEO SA | 8.500 | 08-01-21 | EUR | 683,908 | 907,581 |
Garfunkelux Holdco 3 SA | 8.500 | 11-01-22 | GBP | 425,000 | 628,479 |
GELF Bond Issuer I SA | 1.750 | 11-22-21 | EUR | 950,000 | 1,226,004 |
Intralot Capital Luxembourg SA | 5.250 | 09-15-24 | EUR | 800,000 | 1,009,458 |
Prologis International Funding II SA | 2.750 | 10-23-18 | EUR | 100,000 | 126,624 |
Prologis International Funding II SA | 2.875 | 04-04-22 | EUR | 600,000 | 812,472 |
SELP Finance Sarl | 1.250 | 10-25-23 | EUR | 500,000 | 620,399 |
SELP Finance Sarl | 1.500 | 11-20-25 | EUR | 600,000 | 735,904 |
Simon International Finance SCA | 1.375 | 11-18-22 | EUR | 400,000 | 514,536 |
Telecom Italia Finance SA | 7.750 | 01-24-33 | EUR | 900,000 | 1,738,395 |
Mexico 0.3% | 12,028,405 | ||||
America Movil SAB de CV | 3.000 | 07-12-21 | EUR | 860,000 | 1,165,877 |
America Movil SAB de CV | 4.125 | 10-25-19 | EUR | 100,000 | 133,057 |
America Movil SAB de CV | 4.750 | 06-28-22 | EUR | 200,000 | 294,835 |
America Movil SAB de CV (5.125% to 9-6-18, then 5 Year Euro Swap Rate + 3.850%) | 5.125 | 09-06-73 | EUR | 500,000 | 638,129 |
America Movil SAB de CV (6.375% to 9-6-23, then 5 Year Euro Swap Rate + 4.550%) | 6.375 | 09-06-73 | EUR | 120,000 | 183,059 |
Axtel SAB de CV (A) | 6.375 | 11-14-24 | 1,070,000 | 1,110,125 | |
Cemex SAB de CV (A) | 5.700 | 01-11-25 | 270,000 | 284,432 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 27 |
Rate (%) | Maturity date | Par value^ | Value | ||
Mexico (continued) | |||||
Cemex SAB de CV (A) | 7.750 | 04-16-26 | 1,267,000 | $1,434,878 | |
Mexichem SAB de CV (A) | 5.875 | 09-17-44 | 581,000 | 595,525 | |
Nemak SAB de CV (A) | 5.500 | 02-28-23 | 1,122,000 | 1,150,050 | |
Petroleos Mexicanos | 3.125 | 11-27-20 | EUR | 800,000 | 1,061,700 |
Petroleos Mexicanos | 3.750 | 03-15-19 | EUR | 100,000 | 128,885 |
Petroleos Mexicanos | 7.190 | 09-12-24 | MXN | 80,000,000 | 3,847,853 |
Netherlands 0.6% | 30,541,317 | ||||
ABN AMRO Bank NV (2.875% to 1-18-23, then 5 Year Euro Swap Rate + 2.450%) | 2.875 | 01-18-28 | EUR | 300,000 | 405,688 |
Alliander NV (3.250% to 11-27-18, then 5 Year Euro Swap Rate + 2.295%) (F) | 3.250 | 11-27-18 | EUR | 400,000 | 510,059 |
Bharti Airtel International Netherlands BV | 4.000 | 12-10-18 | EUR | 905,000 | 1,159,616 |
BMW Finance NV | 0.750 | 04-15-24 | EUR | 1,466,000 | 1,819,594 |
BMW Finance NV | 0.875 | 04-03-25 | EUR | 800,000 | 991,191 |
CBR Fashion Finance BV | 5.125 | 10-01-22 | EUR | 800,000 | 933,619 |
Cooperatieve Rabobank UA (2.500% to 5-26-21, then 5 Year Euro Swap Rate + 1.400%) | 2.500 | 05-26-26 | EUR | 1,230,000 | 1,615,090 |
Cooperatieve Rabobank UA | 4.375 | 08-04-25 | 713,000 | 740,842 | |
Delta Lloyd Levensverzekering NV (9.000% to 8-29-22, then 3 month EURIBOR + 8.120%) | 9.000 | 08-29-42 | EUR | 200,000 | 334,630 |
Dufry One BV | 2.500 | 10-15-24 | EUR | 400,000 | 506,803 |
E.ON International Finance BV | 6.750 | 01-27-39 | GBP | 200,000 | 443,742 |
ELM BV (2.600% to 9-1-25, then 6 month EURIBOR + 3.050%) (F) | 2.600 | 09-01-25 | EUR | 800,000 | 1,036,679 |
Enel Finance International NV (A) | 6.800 | 09-15-37 | 582,000 | 766,398 | |
Iberdrola International BV (1.875% to 5-22-23, then 5 Year Euro Swap Rate + 1.592%) (F) | 1.875 | 05-22-23 | EUR | 900,000 | 1,122,989 |
ING Bank NV (4.125% to 11-21-18, then 5 Year U.S. ISDAFIX + 2.700%) | 4.125 | 11-21-23 | 385,000 | 388,390 | |
ING Groep NV (1.625% to 9-26-24, then 5 Year Euro Swap Rate + 1.250%) | 1.625 | 09-26-29 | EUR | 300,000 | 373,248 |
Innogy Finance BV | 1.250 | 10-19-27 | EUR | 500,000 | 610,549 |
InterXion Holding NV | 6.000 | 07-15-20 | EUR | 1,000,000 | 1,277,550 |
JAB Holdings BV | 1.250 | 05-22-24 | EUR | 300,000 | 375,597 |
JAB Holdings BV | 1.500 | 11-24-21 | EUR | 100,000 | 129,320 |
JAB Holdings BV | 1.625 | 04-30-25 | EUR | 300,000 | 381,918 |
JAB Holdings BV | 1.750 | 05-25-23 | EUR | 200,000 | 259,837 |
JAB Holdings BV | 2.125 | 09-16-22 | EUR | 500,000 | 661,849 |
Marfrig Holdings Europe BV (A) | 8.000 | 06-08-23 | 2,197,000 | 2,298,062 | |
Mylan NV | 5.250 | 06-15-46 | 533,000 | 573,880 |
28 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
Netherlands (continued) | |||||
NN Group NV (4.375% to 6-13-24, then 3 month EURIBOR + 3.900%) (F) | 4.375 | 06-13-24 | EUR | 330,000 | $459,285 |
NN Group NV (4.500% to 1-15-26, then 3 month EURIBOR + 4.000%) (F) | 4.500 | 01-15-26 | EUR | 420,000 | 589,986 |
Opel Finance International BV | 0.850 | 02-23-18 | EUR | 500,000 | 621,141 |
RELX Finance BV | 0.375 | 03-22-21 | EUR | 400,000 | 497,945 |
RELX Finance BV | 1.000 | 03-22-24 | EUR | 400,000 | 500,281 |
Roche Finance Europe BV | 0.875 | 02-25-25 | EUR | 400,000 | 503,438 |
Shell International Finance BV | 0.375 | 02-15-25 | EUR | 600,000 | 723,798 |
Shell International Finance BV | 4.125 | 05-11-35 | 1,803,000 | 1,933,600 | |
Siemens Financieringsmaatschappij NV (A) | 3.250 | 05-27-25 | 348,000 | 346,544 | |
Siemens Financieringsmaatschappij NV (A) | 6.125 | 08-17-26 | 195,000 | 234,151 | |
Teva Pharmaceutical Finance Netherlands II BV | 0.375 | 07-25-20 | EUR | 350,000 | 418,740 |
Teva Pharmaceutical Finance Netherlands II BV | 1.125 | 10-15-24 | EUR | 571,000 | 611,984 |
Teva Pharmaceutical Finance Netherlands II BV | 1.250 | 03-31-23 | EUR | 500,000 | 569,247 |
Teva Pharmaceutical Finance Netherlands III BV | 3.150 | 10-01-26 | 1,840,000 | 1,533,890 | |
WPC Eurobond BV | 2.250 | 07-19-24 | EUR | 400,000 | 517,990 |
Ziggo Bond Company BV | 7.125 | 05-15-24 | EUR | 560,000 | 762,157 |
Norway 0.1% | 3,373,298 | ||||
DNB Bank ASA (3.000% to 9-26-18, then 5 Year Euro Swap Rate + 1.770%) | 3.000 | 09-26-23 | EUR | 640,000 | 809,287 |
DNB Bank ASA | 4.375 | 02-24-21 | EUR | 410,000 | 575,113 |
Nassa Topco AS | 2.875 | 04-06-24 | EUR | 760,000 | 955,489 |
Silk Bidco AS | 7.500 | 02-01-22 | EUR | 800,000 | 1,028,010 |
Statkraft AS | 2.500 | 11-28-22 | EUR | 4,000 | 5,399 |
Spain 0.1% | 7,006,030 | ||||
Banco Bilbao Vizcaya Argentaria SA | 0.625 | 01-17-22 | EUR | 400,000 | 499,773 |
Banco Bilbao Vizcaya Argentaria SA (6.750% to 2-18-20, then 5 Year Euro Swap Rate + 6.604%) (F) | 6.750 | 02-18-20 | EUR | 200,000 | 270,039 |
Banco Bilbao Vizcaya Argentaria SA (7.000% to 2-19-19, then 5 Year Euro Swap Rate + 6.155%) (F) | 7.000 | 02-19-19 | EUR | 600,000 | 783,112 |
Banco Santander SA | 1.375 | 02-09-22 | EUR | 600,000 | 767,107 |
Bankinter SA (2.500% to 4-6-22, then 5 Year Euro Swap Rate + 2.400%) | 2.500 | 04-06-27 | EUR | 400,000 | 516,789 |
CaixaBank SA | 0.750 | 04-18-23 | EUR | 600,000 | 741,195 |
CaixaBank SA (5.000% to 11-14-18, then 5 Year Euro Swap Rate + 3.950%) | 5.000 | 11-14-23 | EUR | 300,000 | 386,100 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 29 |
Rate (%) | Maturity date | Par value^ | Value | ||
Spain (continued) | |||||
Santander Consumer Finance SA | 0.750 | 04-03-19 | EUR | 300,000 | $376,301 |
Telefonica Emisiones SAU | 4.710 | 01-20-20 | EUR | 400,000 | 542,371 |
Telefonica Europe BV (5.000% to 3-31-20, then 6 Year Euro Swap Rate + 3.804%) (F) | 5.000 | 03-31-20 | EUR | 500,000 | 674,020 |
Telefonica Europe BV | 5.875 | 02-14-33 | EUR | 130,000 | 241,706 |
Telefonica Europe BV | 8.250 | 09-15-30 | 868,000 | 1,207,517 | |
Sweden 0.1% | 3,039,704 | ||||
Akelius Residential Property AB | 3.375 | 09-23-20 | EUR | 700,000 | 936,767 |
Essity AB | 0.625 | 03-28-22 | EUR | 500,000 | 623,968 |
Essity AB | 1.125 | 03-27-24 | EUR | 300,000 | 375,904 |
Nordea Bank AB (1.000% to 9-7-21, then 5 Year Euro Swap Rate + 1.250%) | 1.000 | 09-07-26 | EUR | 600,000 | 749,765 |
Svenska Handelsbanken AB (2.656% to 1-15-19, then 5 Year Euro Swap Rate + 1.430%) | 2.656 | 01-15-24 | EUR | 278,000 | 353,300 |
Switzerland 0.2% | 10,266,235 | ||||
Credit Suisse AG | 1.125 | 09-15-20 | EUR | 500,000 | 637,169 |
Credit Suisse Group AG (7.125% to 7-29-22, then 5 Year U.S. Swap Rate + 5.108%) (F) | 7.125 | 07-29-22 | 550,000 | 598,813 | |
Novartis Finance SA | 0.125 | 09-20-23 | EUR | 600,000 | 728,944 |
UBS AG | 0.500 | 05-15-18 | EUR | 600,000 | 746,573 |
UBS AG (4.750% to 2-12-21, then 5 Year Euro Swap Rate + 3.400%) | 4.750 | 02-12-26 | EUR | 1,950,000 | 2,691,094 |
UBS Group AG (7.125% to 8-10-21, then 5 Year U.S. Swap Rate + 5.883%) (F) | 7.125 | 08-10-21 | 1,100,000 | 1,186,660 | |
UBS Group Funding Switzerland AG | 1.500 | 11-30-24 | EUR | 900,000 | 1,151,212 |
UBS Group Funding Switzerland AG | 1.750 | 11-16-22 | EUR | 1,700,000 | 2,219,933 |
UBS Group Funding Switzerland AG (A) | 4.125 | 04-15-26 | 297,000 | 305,837 | |
United Arab Emirates 0.0% | 1,240,777 | ||||
Emirates Telecommunications Group Company PJSC | 2.750 | 06-18-26 | EUR | 900,000 | 1,240,777 |
United Kingdom 1.1% | 53,152,434 | ||||
Annington Funding PLC | 1.650 | 07-12-24 | EUR | 600,000 | 751,068 |
Arqiva Broadcast Finance PLC | 9.500 | 03-31-20 | GBP | 570,000 | 836,717 |
Aspire Defence Finance PLC | 4.674 | 03-31-40 | GBP | 217,762 | 375,353 |
Aviva PLC (3.375% to 12-4-25, then 3 month EURIBOR + 3.550%) | 3.375 | 12-04-45 | EUR | 542,000 | 739,113 |
Aviva PLC (3.875% to 7-3-24, then 5 Year Euro Swap Rate + 3.480%) | 3.875 | 07-03-44 | EUR | 130,000 | 181,901 |
Aviva PLC (6.125% to 7-5-23, then 5 Year Euro Swap Rate + 5.130%) | 6.125 | 07-05-43 | EUR | 410,000 | 634,590 |
Babcock International Group PLC | 1.750 | 10-06-22 | EUR | 424,000 | 545,975 |
Barclays Bank PLC | 6.000 | 01-14-21 | EUR | 100,000 | 143,348 |
30 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United Kingdom (continued) | |||||
Barclays Bank PLC | 6.625 | 03-30-22 | EUR | 239,000 | $364,054 |
Barclays PLC | 3.125 | 01-17-24 | GBP | 100,000 | 147,059 |
Barclays PLC | 3.650 | 03-16-25 | 815,000 | 803,519 | |
Barclays PLC (7.875% to 9-15-22, then 5 Year British Pound Swap Rate + 6.099%) (F) | 7.875 | 09-15-22 | GBP | 820,000 | 1,317,770 |
BAT International Finance PLC | 0.875 | 10-13-23 | EUR | 500,000 | 619,249 |
BP Capital Markets PLC | 1.109 | 02-16-23 | EUR | 236,000 | 301,290 |
BP Capital Markets PLC | 1.573 | 02-16-27 | EUR | 250,000 | 320,173 |
BP Capital Markets PLC | 1.953 | 03-03-25 | EUR | 100,000 | 132,724 |
BP Capital Markets PLC | 2.213 | 09-25-26 | EUR | 125,000 | 168,491 |
Brambles Finance PLC | 4.625 | 04-20-18 | EUR | 230,000 | 288,505 |
British Telecommunications PLC | 0.625 | 03-10-21 | EUR | 500,000 | 627,347 |
British Telecommunications PLC | 9.125 | 12-15-30 | 642,000 | 952,147 | |
Cadent Finance PLC | 0.625 | 09-22-24 | EUR | 1,300,000 | 1,564,890 |
Coventry Building Society | 2.500 | 11-18-20 | EUR | 703,000 | 928,782 |
CYBG PLC (5.000% to 2-8-21, then 5 Year British Pound Swap Rate + 3.516%) | 5.000 | 02-09-26 | GBP | 205,000 | 308,885 |
CYBG PLC (8.000% to 12-8-22, then 5 Year British Pound Swap Rate + 6.250%) (F) | 8.000 | 12-08-22 | GBP | 487,000 | 745,772 |
Ensco PLC | 7.750 | 02-01-26 | 1,555,000 | 1,546,253 | |
Experian Finance PLC | 4.750 | 02-04-20 | EUR | 440,000 | 597,802 |
FCE Bank PLC | 1.114 | 05-13-20 | EUR | 100,000 | 127,006 |
FCE Bank PLC | 1.528 | 11-09-20 | EUR | 100,000 | 128,743 |
FCE Bank PLC | 1.875 | 04-18-19 | EUR | 500,000 | 635,153 |
FCE Bank PLC | 1.875 | 06-24-21 | EUR | 540,000 | 704,549 |
Fiat Chrysler Finance Europe | 6.750 | 10-14-19 | EUR | 600,000 | 824,270 |
G4S International Finance PLC | 2.625 | 12-06-18 | EUR | 300,000 | 380,908 |
Hammerson PLC | 2.750 | 09-26-19 | EUR | 10,000 | 12,970 |
Heathrow Funding, Ltd. | 1.500 | 02-11-30 | EUR | 400,000 | 489,176 |
Heathrow Funding, Ltd. | 1.875 | 05-23-22 | EUR | 200,000 | 262,552 |
Heathrow Funding, Ltd. | 6.450 | 12-10-31 | GBP | 184,000 | 369,228 |
HSBC Holdings PLC | 0.875 | 09-06-24 | EUR | 351,000 | 432,268 |
HSBC Holdings PLC | 1.500 | 03-15-22 | EUR | 1,100,000 | 1,422,318 |
HSBC Holdings PLC (3.375% to 1-10-19, then 5 Year Euro Swap Rate + 1.950%) | 3.375 | 01-10-24 | EUR | 180,000 | 230,329 |
HSBC Holdings PLC (5.250% to 9-16-22, then 5 Year Euro Swap Rate + 4.383%) (F) | 5.250 | 09-16-22 | EUR | 1,000,000 | 1,404,437 |
HSBC Holdings PLC (6.000% to 5-22-27, then 5 Year U.S. ISDAFIX + 3.746%) (F) | 6.000 | 05-22-27 | 980,000 | 1,025,325 | |
HSBC Holdings PLC (6.875% to 6-1-21, then 5 Year U.S. ISDAFIX + 5.514%) (F) | 6.875 | 06-01-21 | 687,000 | 737,666 | |
Imperial Brands Finance PLC | 2.250 | 02-26-21 | EUR | 200,000 | 262,133 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 31 |
Rate (%) | Maturity date | Par value^ | Value | ||
United Kingdom (continued) | |||||
Imperial Brands Finance PLC | 5.000 | 12-02-19 | EUR | 720,000 | $975,986 |
Jaguar Land Rover Automotive PLC | 3.875 | 03-01-23 | GBP | 840,000 | 1,238,592 |
Jaguar Land Rover Automotive PLC (A) | 5.625 | 02-01-23 | 150,000 | 153,657 | |
Leeds Building Society | 1.375 | 05-05-22 | EUR | 296,000 | 377,513 |
Leeds Building Society | 2.625 | 04-01-21 | EUR | 296,000 | 392,404 |
Lloyds Bank PLC (5.750% to 7-9-20, then 3 month British Pound LIBOR + 1.390%) | 5.750 | 07-09-25 | GBP | 2,000,000 | 3,102,669 |
Lloyds Bank PLC | 6.500 | 09-17-40 | GBP | 94,000 | 210,919 |
Mondi Finance PLC | 3.375 | 09-28-20 | EUR | 550,000 | 740,098 |
Nationwide Building Society | 0.625 | 04-19-23 | EUR | 148,000 | 183,109 |
Nationwide Building Society (A) | 3.900 | 07-21-25 | 231,000 | 237,638 | |
Nationwide Building Society (4.125% to 3-20-18, then 5 Year Euro Swap Rate + 3.300%) | 4.125 | 03-20-23 | EUR | 400,000 | 499,267 |
Nationwide Building Society (2.000% to 7-25-24, then 5 Year Euro Swap Rate + 1.500%) | 2.000 | 07-25-29 | EUR | 148,000 | 187,745 |
NGG Finance PLC (4.250% to 6-18-20, then 7 Year Euro Swap Rate + 2.880%) | 4.250 | 06-18-76 | EUR | 480,000 | 647,080 |
Nomad Foods Bondco PLC | 3.250 | 05-15-24 | EUR | 770,000 | 980,935 |
Rentokil Initial PLC | 3.250 | 10-07-21 | EUR | 262,000 | 356,742 |
Rio Tinto Finance USA PLC | 4.750 | 03-22-42 | 207,000 | 236,744 | |
Santander UK Group Holdings PLC | 1.125 | 09-08-23 | EUR | 500,000 | 624,770 |
Santander UK Group Holdings PLC (7.375% to 6-24-22, then 5 Year British Pound Swap Rate + 5.543%) (F) | 7.375 | 06-24-22 | GBP | 1,000,000 | 1,629,277 |
Santander UK PLC | 2.625 | 07-16-20 | EUR | 290,000 | 382,196 |
Santander UK PLC | 3.875 | 10-15-29 | GBP | 191,000 | 311,345 |
Santander UK PLC | 4.000 | 03-13-24 | 364,000 | 377,172 | |
Sensata Technologies UK Financing Company PLC (A) | 6.250 | 02-15-26 | 701,000 | 753,575 | |
TalkTalk Telecom Group PLC | 5.375 | 01-15-22 | GBP | 1,175,000 | 1,635,609 |
Tesco PLC | 3.375 | 11-02-18 | EUR | 100,000 | 127,242 |
Tesco Property Finance 2 PLC | 6.052 | 10-13-39 | GBP | 402,913 | 667,173 |
The Royal Bank of Scotland Group PLC (2.000% to 3-8-22, then 3 month EURIBOR + 2.039%) | 2.000 | 03-08-23 | EUR | 700,000 | 910,733 |
The Royal Bank of Scotland Group PLC (3.625% to 3-25-19, then 5 Year Euro Swap Rate + 2.650%) | 3.625 | 03-25-24 | EUR | 590,000 | 757,608 |
The Royal Bank of Scotland Group PLC | 4.800 | 04-05-26 | 452,216 | 478,162 | |
The Royal Bank of Scotland Group PLC (8.625% to 8-15-21, then 5 Year U.S. Swap Rate + 7.598%) (F) | 8.625 | 08-15-21 | 700,000 | 781,375 | |
Vedanta Resources PLC (A) | 6.375 | 07-30-22 | 2,035,000 | 2,121,284 | |
Virgin Media Finance PLC (A) | 6.000 | 10-15-24 | 900,000 | 920,250 | |
Virgin Media Secured Finance PLC | 5.500 | 01-15-25 | GBP | 738,000 | 1,092,383 |
32 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United Kingdom (continued) | |||||
Virgin Media Secured Finance PLC (A) | 6.000 | 01-15-25 | GBP | 500,000 | $807,980 |
Vodafone Group PLC | 0.375 | 11-22-21 | EUR | 900,000 | 1,117,063 |
Vodafone Group PLC | 1.600 | 07-29-31 | EUR | 500,000 | 584,161 |
Vodafone Group PLC | 2.750 | 12-01-34 | EUR | 100,000 | 126,832 |
WPP Finance 2010 | 5.625 | 11-15-43 | 325,000 | 371,425 | |
Yorkshire Building Society | 2.125 | 03-18-19 | EUR | 520,000 | 661,913 |
United States 7.3% | 351,213,176 | ||||
21st Century Fox America, Inc. | 4.750 | 09-15-44 | 598,000 | 675,760 | |
Abbott Laboratories | 4.900 | 11-30-46 | 1,028,000 | 1,172,563 | |
AbbVie, Inc. | 1.375 | 05-17-24 | EUR | 300,000 | 378,506 |
Activision Blizzard, Inc. | 4.500 | 06-15-47 | 331,000 | 340,604 | |
Airxcel, Inc. (A) | 8.500 | 02-15-22 | 1,481,000 | 1,575,414 | |
Allison Transmission, Inc. (A) | 4.750 | 10-01-27 | 1,301,000 | 1,294,495 | |
Ally Financial, Inc. | 3.600 | 05-21-18 | 868,000 | 869,519 | |
Ally Financial, Inc. | 5.750 | 11-20-25 | 2,832,000 | 3,030,240 | |
Altice US Finance I Corp. (A) | 5.375 | 07-15-23 | 1,250,000 | 1,279,688 | |
Altice US Finance I Corp. (A) | 5.500 | 05-15-26 | 963,000 | 984,668 | |
Altria Group, Inc. | 5.375 | 01-31-44 | 494,000 | 590,986 | |
American Airlines 2013-1 Class B Pass Through Trust (A) | 5.625 | 01-15-21 | 644,517 | 667,849 | |
American Airlines 2015-2 Class AA Pass Through Trust | 3.600 | 03-22-29 | 401,319 | 404,417 | |
American International Group, Inc. | 1.875 | 06-21-27 | EUR | 550,000 | 687,025 |
American International Group, Inc. | 4.500 | 07-16-44 | 972,000 | 1,008,201 | |
Amgen, Inc. | 3.125 | 05-01-25 | 345,000 | 340,799 | |
Amgen, Inc. | 4.663 | 06-15-51 | 117,000 | 127,323 | |
Anadarko Petroleum Corp. | 6.450 | 09-15-36 | 1,598,000 | 1,988,847 | |
Anheuser-Busch InBev Finance, Inc. | 4.700 | 02-01-36 | 614,000 | 677,875 | |
Anheuser-Busch InBev Finance, Inc. | 4.900 | 02-01-46 | 658,000 | 740,452 | |
Anheuser-Busch InBev Worldwide, Inc. | 4.950 | 01-15-42 | 1,378,000 | 1,551,321 | |
Anthem, Inc. | 3.500 | 08-15-24 | 539,000 | 543,950 | |
Apple, Inc. | 4.250 | 02-09-47 | 579,000 | 622,600 | |
Apple, Inc. | 4.500 | 02-23-36 | 266,000 | 297,668 | |
Aramark Services, Inc. (A) | 5.000 | 02-01-28 | 325,000 | 329,672 | |
Arconic, Inc. | 5.125 | 10-01-24 | 553,000 | 584,798 | |
Arconic, Inc. | 5.900 | 02-01-27 | 1,705,000 | 1,907,043 | |
Asbury Automotive Group, Inc. | 6.000 | 12-15-24 | 1,428,000 | 1,485,120 | |
Ashland LLC | 4.750 | 08-15-22 | 1,431,000 | 1,488,240 | |
AT&T, Inc. | 1.450 | 06-01-22 | EUR | 1,100,000 | 1,416,298 |
AT&T, Inc. | 1.800 | 09-04-26 | EUR | 550,000 | 690,777 |
AT&T, Inc. | 2.650 | 12-17-21 | EUR | 600,000 | 804,829 |
AT&T, Inc. | 2.750 | 05-19-23 | EUR | 530,000 | 725,597 |
AT&T, Inc. | 3.150 | 09-04-36 | EUR | 350,000 | 450,405 |
AT&T, Inc. | 3.400 | 05-15-25 | 875,000 | 851,983 | |
AT&T, Inc. | 3.550 | 12-17-32 | EUR | 180,000 | 250,440 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 33 |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
AT&T, Inc. | 4.750 | 05-15-46 | 850,000 | $830,335 | |
AT&T, Inc. | 4.800 | 06-15-44 | 304,000 | 298,514 | |
AT&T, Inc. | 5.150 | 03-15-42 | 608,000 | 620,013 | |
AT&T, Inc. | 5.700 | 03-01-57 | 356,000 | 390,790 | |
Avantor, Inc. (A) | 6.000 | 10-01-24 | 1,268,000 | 1,279,095 | |
Avis Budget Car Rental LLC (A) | 5.125 | 06-01-22 | 1,305,000 | 1,311,525 | |
Avis Budget Car Rental LLC | 5.500 | 04-01-23 | 1,211,000 | 1,220,083 | |
Bank of America Corp. (3 month EURIBOR + 0.840%) (E) | 0.511 | 03-28-18 | EUR | 350,000 | 434,842 |
Bank of America Corp. (0.736% to 2-7-21, then 3 month EURIBOR + 0.830%) | 0.736 | 02-07-22 | EUR | 600,000 | 754,578 |
Bank of America Corp. | 0.750 | 07-26-23 | EUR | 900,000 | 1,114,642 |
Bank of America Corp. | 1.625 | 09-14-22 | EUR | 800,000 | 1,039,152 |
Bank of America Corp. | 2.500 | 07-27-20 | EUR | 200,000 | 263,270 |
Bank of America Corp. | 4.450 | 03-03-26 | 458,000 | 480,419 | |
Bank of America Corp. | 5.875 | 02-07-42 | 397,000 | 515,082 | |
Bank of America Corp. (6.300% to 3-10-26, then 3 month LIBOR + 4.553%) (F) | 6.300 | 03-10-26 | 3,230,000 | 3,617,600 | |
Bank of America Corp. | 7.750 | 05-14-38 | 300,000 | 443,516 | |
Baxalta, Inc. | 5.250 | 06-23-45 | 985,000 | 1,134,896 | |
Berry Global, Inc. | 5.500 | 05-15-22 | 884,000 | 912,810 | |
Berry Global, Inc. | 6.000 | 10-15-22 | 1,120,000 | 1,167,600 | |
Block Communications, Inc. (A) | 6.875 | 02-15-25 | 358,000 | 372,320 | |
Brighthouse Financial, Inc. (A) | 4.700 | 06-22-47 | 329,000 | 324,620 | |
Broadridge Financial Solutions, Inc. | 3.400 | 06-27-26 | 663,000 | 646,616 | |
Builders FirstSource, Inc. (A) | 5.625 | 09-01-24 | 832,000 | 870,480 | |
Burlington Northern Santa Fe LLC | 4.150 | 04-01-45 | 1,477,000 | 1,575,881 | |
BWAY Holding Company (A) | 5.500 | 04-15-24 | 1,770,000 | 1,834,163 | |
CB Escrow Corp. (A) | 8.000 | 10-15-25 | 348,000 | 348,870 | |
CCO Holdings LLC (A) | 5.500 | 05-01-26 | 1,179,000 | 1,202,580 | |
CCO Holdings LLC (A) | 5.875 | 04-01-24 | 1,955,000 | 2,042,975 | |
CCO Holdings LLC (A) | 5.875 | 05-01-27 | 1,387,000 | 1,428,610 | |
Celgene Corp. | 5.000 | 08-15-45 | 502,000 | 556,959 | |
CEMEX Finance LLC (A) | 6.000 | 04-01-24 | 645,000 | 677,573 | |
Century Communities, Inc. | 5.875 | 07-15-25 | 1,858,000 | 1,883,548 | |
CenturyLink, Inc. | 5.625 | 04-01-20 | 1,346,000 | 1,364,508 | |
Change Healthcare Holdings LLC (A) | 5.750 | 03-01-25 | 1,040,000 | 1,058,200 | |
Charter Communications Operating LLC | 6.384 | 10-23-35 | 1,994,000 | 2,326,171 | |
Charter Communications Operating LLC | 6.484 | 10-23-45 | 433,000 | 508,851 | |
Cheniere Corpus Christi Holdings LLC | 5.875 | 03-31-25 | 718,000 | 773,645 | |
Cheniere Corpus Christi Holdings LLC | 7.000 | 06-30-24 | 2,102,000 | 2,391,025 | |
Cheniere Energy Partners LP (A) | 5.250 | 10-01-25 | 1,208,000 | 1,230,650 | |
Chubb INA Holdings, Inc. | 4.350 | 11-03-45 | 226,000 | 247,940 |
34 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Cincinnati Bell, Inc. (A) | 7.000 | 07-15-24 | 1,556,496 | $1,502,019 | |
CIT Group, Inc. | 5.000 | 08-15-22 | 2,161,000 | 2,258,245 | |
CIT Group, Inc. | 5.000 | 08-01-23 | 392,000 | 409,640 | |
Citigroup, Inc. (3 month EURIBOR +1.400%) (E) | 1.071 | 02-10-19 | EUR | 850,000 | 1,055,330 |
Citigroup, Inc. | 1.375 | 10-27-21 | EUR | 300,000 | 386,304 |
Citigroup, Inc. | 1.750 | 01-28-25 | EUR | 348,000 | 450,411 |
Citigroup, Inc. | 4.450 | 09-29-27 | 347,000 | 361,886 | |
Citigroup, Inc. | 5.000 | 08-02-19 | EUR | 420,000 | 561,499 |
Citigroup, Inc. | 5.500 | 09-13-25 | 400,000 | 445,519 | |
Citigroup, Inc. | 5.875 | 01-30-42 | 228,000 | 297,093 | |
Citigroup, Inc. (6.125% to 11-15-20, then 3 month LIBOR + 4.478%) (F) | 6.125 | 11-15-20 | 2,385,000 | 2,521,899 | |
Citigroup, Inc. | 7.375 | 09-04-19 | EUR | 1,900,000 | 2,639,354 |
Citigroup, Inc. | 8.125 | 07-15-39 | 506,000 | 800,194 | |
Comcast Corp. | 4.200 | 08-15-34 | 440,000 | 460,066 | |
Comcast Corp. | 4.750 | 03-01-44 | 979,000 | 1,092,626 | |
Commonwealth Edison Company | 3.650 | 06-15-46 | 301,000 | 297,486 | |
Commonwealth Edison Company | 4.350 | 11-15-45 | 204,000 | 224,168 | |
CommScope Technologies LLC (A) | 6.000 | 06-15-25 | 1,424,000 | 1,498,319 | |
Conduent Finance, Inc. (A) | 10.500 | 12-15-24 | 1,550,000 | 1,810,090 | |
Consolidated Communications, Inc. | 6.500 | 10-01-22 | 2,264,000 | 2,031,940 | |
Continental Resources, Inc. (A) | 4.375 | 01-15-28 | 2,060,000 | 2,052,584 | |
Continental Resources, Inc. | 4.500 | 04-15-23 | 2,410,000 | 2,440,125 | |
Cornerstone Chemical Company (A) | 6.750 | 08-15-24 | 933,000 | 935,333 | |
Crestwood Midstream Partners LP | 6.250 | 04-01-23 | 1,411,000 | 1,470,968 | |
CRH America, Inc. (A) | 5.125 | 05-18-45 | 335,000 | 378,306 | |
CSC Holdings LLC (A) | 6.625 | 10-15-25 | 1,407,000 | 1,505,490 | |
CSC Holdings LLC (A) | 10.125 | 01-15-23 | 1,139,000 | 1,284,934 | |
CSC Holdings LLC (A) | 10.875 | 10-15-25 | 2,239,000 | 2,666,537 | |
CVS Health Corp. | 5.125 | 07-20-45 | 1,041,000 | 1,156,464 | |
CyrusOne LP | 5.000 | 03-15-24 | 1,934,000 | 1,972,680 | |
Daimler Finance North America LLC | 8.500 | 01-18-31 | 781,000 | 1,160,387 | |
Devon Energy Corp. | 4.750 | 05-15-42 | 186,000 | 199,243 | |
DISH DBS Corp. | 6.750 | 06-01-21 | 2,151,000 | 2,253,173 | |
Dollar Tree, Inc. | 5.250 | 03-01-20 | 1,696,000 | 1,721,949 | |
Dollar Tree, Inc. | 5.750 | 03-01-23 | 1,099,000 | 1,146,394 | |
Dominion Energy, Inc. | 4.050 | 09-15-42 | 291,000 | 290,686 | |
Dominion Energy, Inc. | 7.000 | 06-15-38 | 315,000 | 427,697 | |
Dr. Pepper Snapple Group, Inc. | 4.420 | 12-15-46 | 946,000 | 962,086 | |
Dr. Pepper Snapple Group, Inc. (A) | 4.500 | 11-15-45 | 319,000 | 327,194 | |
Duke Energy Carolinas LLC | 6.450 | 10-15-32 | 379,000 | 489,294 | |
Duke Energy Progress LLC | 3.250 | 08-15-25 | 298,000 | 298,650 | |
Duke Energy Progress LLC | 4.200 | 08-15-45 | 1,509,000 | 1,623,021 | |
Dynegy, Inc. | 7.375 | 11-01-22 | 456,000 | 481,718 | |
Dynegy, Inc. | 7.625 | 11-01-24 | 615,000 | 664,446 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 35 |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Eastman Chemical Company | 4.650 | 10-15-44 | 671,000 | $729,049 | |
Electronic Arts, Inc. | 4.800 | 03-01-26 | 226,000 | 245,059 | |
EMD Finance LLC (A) | 3.250 | 03-19-25 | 513,000 | 509,465 | |
EMI Music Publishing Group North America Holdings, Inc. (A) | 7.625 | 06-15-24 | 1,412,000 | 1,553,200 | |
Encompass Health Corp. | 5.750 | 11-01-24 | 2,365,000 | 2,412,300 | |
Endeavor Energy Resources LP (A) | 5.500 | 01-30-26 | 531,000 | 537,638 | |
Endeavor Energy Resources LP (A) | 5.750 | 01-30-28 | 386,000 | 392,755 | |
Endo Finance LLC (A) | 5.750 | 01-15-22 | 281,000 | 237,445 | |
Endo Finance LLC (A) | 5.875 | 10-15-24 | 554,000 | 562,310 | |
Endo Finance LLC (A) | 6.000 | 07-15-23 | 245,000 | 192,019 | |
Energy Transfer Equity LP | 5.875 | 01-15-24 | 561,000 | 607,283 | |
Energy Transfer Equity LP | 7.500 | 10-15-20 | 1,429,000 | 1,570,571 | |
Energy Transfer LP | 6.125 | 12-15-45 | 2,251,000 | 2,505,635 | |
Enterprise Products Operating LLC | 4.900 | 05-15-46 | 1,029,000 | 1,148,109 | |
Envision Healthcare Corp. | 5.625 | 07-15-22 | 156,000 | 158,730 | |
Envision Healthcare Corp. (A) | 6.250 | 12-01-24 | 770,000 | 815,238 | |
EOG Resources, Inc. | 3.150 | 04-01-25 | 87,000 | 85,677 | |
EOG Resources, Inc. | 3.900 | 04-01-35 | 507,000 | 515,210 | |
EOG Resources, Inc. | 4.150 | 01-15-26 | 14,000 | 14,716 | |
Equinix, Inc. | 5.875 | 01-15-26 | 1,237,000 | 1,314,313 | |
ESH Hospitality, Inc. (A) | 5.250 | 05-01-25 | 1,636,000 | 1,648,270 | |
Exelon Corp. | 4.950 | 06-15-35 | 103,000 | 115,586 | |
Exelon Corp. | 5.100 | 06-15-45 | 938,000 | 1,079,099 | |
Exxon Mobil Corp. | 3.567 | 03-06-45 | 533,000 | 536,988 | |
Exxon Mobil Corp. | 4.114 | 03-01-46 | 315,000 | 340,569 | |
FedEx Corp. | 4.750 | 11-15-45 | 358,000 | 396,378 | |
First Data Corp. (A) | 7.000 | 12-01-23 | 3,163,000 | 3,331,050 | |
Florida Power & Light Company | 5.690 | 03-01-40 | 856,000 | 1,110,916 | |
Florida Power & Light Company | 5.960 | 04-01-39 | 415,000 | 547,804 | |
Ford Motor Company | 4.750 | 01-15-43 | 1,006,000 | 984,935 | |
Fortive Corp. | 4.300 | 06-15-46 | 562,000 | 583,716 | |
Frontier Communications Corp. | 6.250 | 09-15-21 | 1,365,000 | 1,115,888 | |
Frontier Communications Corp. | 8.500 | 04-15-20 | 428,000 | 417,835 | |
Frontier Communications Corp. | 10.500 | 09-15-22 | 1,501,000 | 1,238,325 | |
General Electric Company | 0.875 | 05-17-25 | EUR | 400,000 | 484,161 |
General Electric Company | 1.250 | 05-26-23 | EUR | 567,000 | 719,671 |
General Electric Company | 2.125 | 05-17-37 | EUR | 800,000 | 952,034 |
General Motors Financial Company, Inc. (5.750% to 9-30-27, then 3 month LIBOR + 3.598%) (F) | 5.750 | 09-30-27 | 1,211,000 | 1,250,358 | |
Georgia-Pacific LLC (A) | 3.600 | 03-01-25 | 440,000 | 447,514 | |
Georgia-Pacific LLC | 7.750 | 11-15-29 | 907,000 | 1,256,401 | |
Gilead Sciences, Inc. | 4.500 | 02-01-45 | 525,000 | 570,603 | |
GlaxoSmithKline Capital, Inc. | 6.375 | 05-15-38 | 262,000 | 361,580 | |
GLP Capital LP | 5.375 | 04-15-26 | 1,826,000 | 1,953,820 |
36 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Halliburton Company | 3.800 | 11-15-25 | 653,000 | $668,230 | |
Halliburton Company | 5.000 | 11-15-45 | 300,000 | 343,766 | |
Harland Clarke Holdings Corp. (A) | 8.375 | 08-15-22 | 1,982,000 | 2,066,235 | |
HCA, Inc. | 4.750 | 05-01-23 | 1,401,000 | 1,455,639 | |
HCA, Inc. | 5.250 | 04-15-25 | 2,541,000 | 2,665,916 | |
HCA, Inc. | 5.500 | 06-15-47 | 1,083,000 | 1,105,337 | |
HCA, Inc. | 7.500 | 11-15-95 | 1,685,000 | 1,758,719 | |
Hilton Domestic Operating Company, Inc. | 4.250 | 09-01-24 | 1,422,000 | 1,415,430 | |
Host Hotels & Resorts LP | 4.000 | 06-15-25 | 341,000 | 342,805 | |
Icahn Enterprises LP | 6.250 | 02-01-22 | 970,000 | 999,100 | |
International Paper Company | 5.150 | 05-15-46 | 769,000 | 878,201 | |
Interval Acquisition Corp. | 5.625 | 04-15-23 | 1,698,000 | 1,753,185 | |
j2 Cloud Services LLC (A) | 6.000 | 07-15-25 | 1,895,000 | 2,003,963 | |
Johnson & Johnson | 3.700 | 03-01-46 | 536,000 | 548,302 | |
Johnson & Johnson | 4.500 | 12-05-43 | 1,122,000 | 1,293,477 | |
JPMorgan Chase & Co. | 0.625 | 01-25-24 | EUR | 2,650,000 | 3,242,489 |
JPMorgan Chase & Co. | 1.375 | 09-16-21 | EUR | 450,000 | 580,601 |
JPMorgan Chase & Co. | 1.500 | 10-26-22 | EUR | 600,000 | 777,722 |
JPMorgan Chase & Co. | 1.500 | 01-27-25 | EUR | 400,000 | 512,525 |
JPMorgan Chase & Co. | 2.625 | 04-23-21 | EUR | 1,750,000 | 2,341,859 |
JPMorgan Chase & Co. | 5.625 | 08-16-43 | 479,000 | 584,711 | |
JPMorgan Chase & Co. | 6.400 | 05-15-38 | 1,015,000 | 1,374,385 | |
Kansas City Southern | 4.950 | 08-15-45 | 345,000 | 381,010 | |
Kilroy Realty LP | 4.250 | 08-15-29 | 163,000 | 164,894 | |
Kilroy Realty LP | 4.375 | 10-01-25 | 82,000 | 84,638 | |
Kinder Morgan, Inc. | 4.300 | 06-01-25 | 549,000 | 568,575 | |
Lennar Corp. (A) | 2.950 | 11-29-20 | 1,270,000 | 1,254,125 | |
Lennar Corp. (A) | 4.750 | 11-29-27 | 1,836,000 | 1,854,360 | |
Lockheed Martin Corp. | 4.090 | 09-15-52 | 1,285,000 | 1,305,578 | |
Lowe's Companies, Inc. | 3.700 | 04-15-46 | 217,000 | 212,064 | |
M/I Homes, Inc. | 5.625 | 08-01-25 | 1,145,000 | 1,165,038 | |
Marriott International, Inc. | 3.750 | 10-01-25 | 332,000 | 335,254 | |
McDonald's Corp. | 3.375 | 05-26-25 | 290,000 | 292,181 | |
McDonald's Corp. | 4.875 | 12-09-45 | 418,000 | 480,750 | |
MDC Holdings, Inc. | 6.000 | 01-15-43 | 1,759,000 | 1,732,615 | |
Medtronic, Inc. | 3.500 | 03-15-25 | 384,000 | 391,134 | |
Medtronic, Inc. | 4.375 | 03-15-35 | 587,000 | 644,327 | |
Medtronic, Inc. | 4.625 | 03-15-45 | 316,000 | 357,671 | |
Merck & Company, Inc. | 1.875 | 10-15-26 | EUR | 600,000 | 798,129 |
Merck & Company, Inc. | 4.150 | 05-18-43 | 1,007,000 | 1,088,687 | |
Meredith Corp. (A) | 6.875 | 02-01-26 | 1,682,000 | 1,721,948 | |
MetLife, Inc. | 4.600 | 05-13-46 | 362,000 | 392,337 | |
MetLife, Inc. | 5.875 | 02-06-41 | 686,000 | 864,470 | |
Metropolitan Life Global Funding I | 0.875 | 01-20-22 | EUR | 600,000 | 755,458 |
Metropolitan Life Global Funding I | 1.250 | 09-17-21 | EUR | 600,000 | 766,884 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 37 |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Metropolitan Life Global Funding I | 2.375 | 09-30-19 | EUR | 500,000 | $646,061 |
Metropolitan Life Global Funding I | 2.375 | 01-11-23 | EUR | 200,000 | 268,264 |
MGM Resorts International | 6.000 | 03-15-23 | 1,529,000 | 1,651,320 | |
Microsemi Corp. (A) | 9.125 | 04-15-23 | 1,043,000 | 1,165,553 | |
Microsoft Corp. | 3.750 | 02-12-45 | 1,383,000 | 1,414,297 | |
Microsoft Corp. | 4.450 | 11-03-45 | 160,000 | 182,266 | |
Molex Electronic Technologies LLC (A) | 3.900 | 04-15-25 | 481,000 | 481,855 | |
Molson Coors Brewing Company | 1.250 | 07-15-24 | EUR | 530,000 | 657,953 |
Molson Coors Brewing Company | 4.200 | 07-15-46 | 1,069,000 | 1,068,585 | |
Monongahela Power Company (A) | 5.400 | 12-15-43 | 460,000 | 568,131 | |
Morgan Stanley | 1.375 | 10-27-26 | EUR | 900,000 | 1,104,563 |
Morgan Stanley | 1.875 | 03-30-23 | EUR | 400,000 | 523,489 |
Morgan Stanley | 1.875 | 04-27-27 | EUR | 800,000 | 1,015,389 |
Morgan Stanley | 2.375 | 03-31-21 | EUR | 1,000,000 | 1,323,195 |
Morgan Stanley | 4.350 | 09-08-26 | 446,000 | 463,351 | |
Morgan Stanley | 4.375 | 01-22-47 | 1,559,000 | 1,670,561 | |
Morgan Stanley (5.550% to 7-15-20, then 3 month LIBOR + 3.810%) (F) | 5.550 | 07-15-20 | 2,846,000 | 2,942,053 | |
Moss Creek Resources Holdings, Inc. (A) | 7.500 | 01-15-26 | 1,368,000 | 1,424,430 | |
MPT Operating Partnership LP | 4.000 | 08-19-22 | EUR | 700,000 | 961,203 |
MPT Operating Partnership LP | 5.250 | 08-01-26 | 159,000 | 163,770 | |
Multi-Color Corp. (A) | 4.875 | 11-01-25 | 1,611,000 | 1,617,041 | |
National Grid North America, Inc. | 0.750 | 02-11-22 | EUR | 700,000 | 879,018 |
Navient Corp. | 4.875 | 06-17-19 | 1,285,000 | 1,301,731 | |
Navient Corp. | 6.625 | 07-26-21 | 882,000 | 937,125 | |
Netflix, Inc. | 5.750 | 03-01-24 | 1,723,000 | 1,826,380 | |
Newell Brands, Inc. | 5.500 | 04-01-46 | 336,000 | 385,720 | |
Noble Energy, Inc. | 5.050 | 11-15-44 | 265,000 | 291,875 | |
Noble Energy, Inc. | 5.250 | 11-15-43 | 561,000 | 624,291 | |
Novelis Corp. (A) | 5.875 | 09-30-26 | 1,248,000 | 1,285,440 | |
Novelis Corp. (A) | 6.250 | 08-15-24 | 1,275,000 | 1,335,563 | |
NRG Energy, Inc. (A) | 5.750 | 01-15-28 | 250,000 | 250,050 | |
NRG Energy, Inc. | 6.625 | 01-15-27 | 991,000 | 1,045,505 | |
NRG Energy, Inc. | 7.250 | 05-15-26 | 1,109,000 | 1,207,812 | |
Oasis Petroleum, Inc. | 6.875 | 03-15-22 | 1,095,000 | 1,127,850 | |
Oasis Petroleum, Inc. | 6.875 | 01-15-23 | 1,756,000 | 1,808,680 | |
Occidental Petroleum Corp. | 3.500 | 06-15-25 | 763,000 | 777,154 | |
Oncor Electric Delivery Company LLC | 3.750 | 04-01-45 | 592,000 | 595,105 | |
Oncor Electric Delivery Company LLC | 5.250 | 09-30-40 | 234,000 | 283,634 | |
Oracle Corp. | 3.900 | 05-15-35 | 419,000 | 434,765 | |
Oracle Corp. | 4.000 | 07-15-46 | 476,000 | 491,957 | |
Oracle Corp. | 4.300 | 07-08-34 | 670,000 | 730,561 | |
Owens-Brockway Glass Container, Inc. (A) | 5.875 | 08-15-23 | 607,000 | 644,938 | |
Pacific Gas & Electric Company | 4.250 | 03-15-46 | 389,000 | 394,566 |
38 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Pacific Gas & Electric Company | 4.300 | 03-15-45 | 993,000 | $1,008,939 | |
Parsley Energy LLC (A) | 5.375 | 01-15-25 | 1,383,000 | 1,396,830 | |
Parsley Energy LLC (A) | 5.625 | 10-15-27 | 350,000 | 359,625 | |
PDC Energy, Inc. | 6.125 | 09-15-24 | 1,470,000 | 1,528,800 | |
PepsiCo, Inc. | 0.875 | 07-18-28 | EUR | 600,000 | 715,636 |
PepsiCo, Inc. | 4.450 | 04-14-46 | 292,000 | 325,532 | |
PepsiCo, Inc. | 4.600 | 07-17-45 | 517,000 | 583,787 | |
Philip Morris International, Inc. | 1.875 | 03-03-21 | EUR | 500,000 | 650,646 |
Philip Morris International, Inc. | 2.750 | 03-19-25 | EUR | 150,000 | 206,968 |
Philip Morris International, Inc. | 2.875 | 03-03-26 | EUR | 240,000 | 334,476 |
Philip Morris International, Inc. | 3.125 | 06-03-33 | EUR | 180,000 | 261,673 |
Philip Morris International, Inc. | 4.125 | 03-04-43 | 182,000 | 182,923 | |
Philip Morris International, Inc. | 6.375 | 05-16-38 | 328,000 | 435,146 | |
Post Holdings, Inc. (A) | 5.000 | 08-15-26 | 1,447,000 | 1,412,634 | |
Post Holdings, Inc. (A) | 5.750 | 03-01-27 | 275,000 | 276,719 | |
Praxair, Inc. | 1.200 | 02-12-24 | EUR | 100,000 | 127,830 |
Praxair, Inc. | 1.625 | 12-01-25 | EUR | 400,000 | 522,757 |
Prologis LP | 3.000 | 01-18-22 | EUR | 500,000 | 680,660 |
Prologis LP | 3.375 | 02-20-24 | EUR | 113,000 | 160,047 |
Prudential Financial, Inc. (A) | 3.935 | 12-07-49 | 1,079,000 | 1,064,022 | |
Prudential Financial, Inc. | 4.600 | 05-15-44 | 491,000 | 539,497 | |
PulteGroup, Inc. | 5.000 | 01-15-27 | 648,000 | 673,078 | |
PulteGroup, Inc. | 5.500 | 03-01-26 | 845,000 | 907,319 | |
Quintiles IMS, Inc. | 3.250 | 03-15-25 | EUR | 1,235,000 | 1,563,861 |
RELX Capital, Inc. | 1.300 | 05-12-25 | EUR | 850,000 | 1,069,918 |
Reynolds American, Inc. | 5.850 | 08-15-45 | 942,000 | 1,147,416 | |
Reynolds Group Issuer, Inc. (A) | 5.125 | 07-15-23 | 1,192,000 | 1,227,760 | |
Roche Holdings, Inc. (A) | 2.625 | 05-15-26 | 364,000 | 348,418 | |
Roche Holdings, Inc. (A) | 4.000 | 11-28-44 | 681,000 | 715,789 | |
Rowan Companies, Inc. | 7.375 | 06-15-25 | 848,000 | 868,937 | |
S&P Global, Inc. | 4.400 | 02-15-26 | 797,000 | 849,875 | |
Sabine Pass Liquefaction LLC | 4.200 | 03-15-28 | 500,000 | 502,980 | |
Schlumberger Holdings Corp. (A) | 4.000 | 12-21-25 | 808,000 | 838,904 | |
Service Corp. International | 5.375 | 05-15-24 | 2,070,000 | 2,173,500 | |
Simon Property Group LP | 4.250 | 10-01-44 | 576,000 | 593,819 | |
Sirius XM Radio, Inc. (A) | 5.375 | 04-15-25 | 1,781,000 | 1,825,525 | |
SM Energy Company | 6.750 | 09-15-26 | 1,201,000 | 1,252,043 | |
Southern Copper Corp. | 5.875 | 04-23-45 | 460,000 | 563,360 | |
Southern Power Company | 1.850 | 06-20-26 | EUR | 500,000 | 647,526 |
Sprint Communications, Inc. | 6.000 | 11-15-22 | 4,133,000 | 4,122,668 | |
Sprint Corp. | 7.250 | 09-15-21 | 3,045,000 | 3,235,952 | |
Sprint Corp. | 7.625 | 02-15-25 | 687,000 | 712,763 | |
Standard Industries, Inc. (A) | 5.500 | 02-15-23 | 1,230,914 | 1,280,151 | |
Staples, Inc. (A) | 8.500 | 09-15-25 | 2,168,000 | 2,094,830 | |
Starwood Property Trust, Inc. (A) | 4.750 | 03-15-25 | 1,351,000 | 1,334,113 | |
Steel Dynamics, Inc. | 4.125 | 09-15-25 | 964,000 | 954,071 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 39 |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Steel Dynamics, Inc. | 5.000 | 12-15-26 | 955,000 | $993,200 | |
Stryker Corp. | 4.625 | 03-15-46 | 965,000 | 1,072,582 | |
Swiss Re Treasury US Corp. (A) | 4.250 | 12-06-42 | 461,000 | 470,983 | |
Symantec Corp. (A) | 5.000 | 04-15-25 | 2,046,000 | 2,086,570 | |
Target Corp. | 4.000 | 07-01-42 | 700,000 | 715,379 | |
Tenet Healthcare Corp. | 4.500 | 04-01-21 | 286,000 | 287,430 | |
Tenet Healthcare Corp. (A) | 4.625 | 07-15-24 | 988,000 | 970,710 | |
Tenet Healthcare Corp. (A) | 5.125 | 05-01-25 | 915,000 | 902,419 | |
Tennant Company (A) | 5.625 | 05-01-25 | 1,818,000 | 1,892,993 | |
The Boeing Company | 5.875 | 02-15-40 | 98,000 | 127,701 | |
The Chemours Company | 7.000 | 05-15-25 | 900,000 | 983,250 | |
The Dow Chemical Company | 4.625 | 10-01-44 | 660,000 | 716,178 | |
The Home Depot, Inc. | 4.250 | 04-01-46 | 307,000 | 334,760 | |
The Home Depot, Inc. | 4.400 | 03-15-45 | 974,000 | 1,083,477 | |
The JM Smucker Company | 4.375 | 03-15-45 | 1,481,000 | 1,535,972 | |
The Southern Company | 4.400 | 07-01-46 | 421,000 | 436,655 | |
The Travelers Companies, Inc. | 4.600 | 08-01-43 | 113,000 | 127,081 | |
The Walt Disney Company | 3.150 | 09-17-25 | 510,000 | 511,595 | |
Thermo Fisher Scientific, Inc. | 0.750 | 09-12-24 | EUR | 800,000 | 973,195 |
Thermo Fisher Scientific, Inc. | 1.400 | 01-23-26 | EUR | 500,000 | 621,400 |
Thermo Fisher Scientific, Inc. | 2.875 | 07-24-37 | EUR | 300,000 | 383,021 |
Time Warner, Inc. | 3.600 | 07-15-25 | 253,000 | 249,658 | |
Time Warner, Inc. | 4.850 | 07-15-45 | 507,000 | 531,027 | |
Time Warner, Inc. | 5.375 | 10-15-41 | 179,000 | 196,506 | |
Titan International, Inc. (A) | 6.500 | 11-30-23 | 1,274,000 | 1,321,775 | |
T-Mobile USA, Inc. | 4.500 | 02-01-26 | 466,000 | 468,395 | |
TTM Technologies, Inc. (A) | 5.625 | 10-01-25 | 1,049,000 | 1,077,848 | |
Ultra Resources, Inc. (A) | 6.875 | 04-15-22 | 683,000 | 683,000 | |
Ultra Resources, Inc. (A) | 7.125 | 04-15-25 | 796,000 | 795,005 | |
Union Pacific Corp. | 3.799 | 10-01-51 | 668,000 | 677,659 | |
Union Pacific Corp. | 4.050 | 03-01-46 | 170,000 | 181,066 | |
United Airlines 2013-1 Class B Pass Through Trust | 5.375 | 08-15-21 | 435,162 | 453,395 | |
United Airlines 2015-1 Class AA Pass Through Trust | 3.450 | 06-01-29 | 177,147 | 177,342 | |
United Parcel Service, Inc. | 6.200 | 01-15-38 | 611,000 | 827,234 | |
United Rentals North America, Inc. | 4.625 | 10-15-25 | 1,124,000 | 1,140,860 | |
United Rentals North America, Inc. | 4.875 | 01-15-28 | 694,000 | 694,000 | |
United Technologies Corp. | 4.500 | 06-01-42 | 689,000 | 749,873 | |
UnitedHealth Group, Inc. | 3.750 | 07-15-25 | 203,000 | 209,649 | |
UnitedHealth Group, Inc. | 4.750 | 07-15-45 | 1,315,000 | 1,524,721 | |
US Airways 2011-1 Class A Pass Through Trust | 7.125 | 10-22-23 | 1,074,533 | 1,217,554 | |
USG Corp. (A) | 5.500 | 03-01-25 | 966,000 | 1,016,715 | |
Valeant Pharmaceuticals International, Inc. (A) | 5.500 | 11-01-25 | 236,000 | 238,478 |
40 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Rate (%) | Maturity date | Par value^ | Value | ||
United States (continued) | |||||
Valeant Pharmaceuticals International, Inc. (A) | 7.000 | 03-15-24 | 2,259,000 | $2,402,311 | |
Vector Group, Ltd. (A) | 6.125 | 02-01-25 | 1,471,000 | 1,526,163 | |
Verizon Communications, Inc. | 2.875 | 01-15-38 | EUR | 500,000 | 634,941 |
Verizon Communications, Inc. | 3.250 | 02-17-26 | EUR | 680,000 | 965,502 |
Verizon Communications, Inc. | 3.500 | 11-01-24 | 538,000 | 541,281 | |
Verizon Communications, Inc. | 5.012 | 04-15-49 | 106,000 | 112,584 | |
Versum Materials, Inc. (A) | 5.500 | 09-30-24 | 1,563,000 | 1,656,780 | |
Viking Cruises, Ltd. (A) | 5.875 | 09-15-27 | 345,000 | 346,725 | |
Viking Cruises, Ltd. (A) | 6.250 | 05-15-25 | 800,000 | 828,000 | |
Virginia Electric & Power Company | 4.650 | 08-15-43 | 607,000 | 689,144 | |
Voya Financial, Inc. | 5.700 | 07-15-43 | 363,000 | 439,519 | |
Wachovia Corp. | 4.375 | 11-27-18 | EUR | 700,000 | 901,058 |
Walgreens Boots Alliance, Inc. | 4.650 | 06-01-46 | 336,000 | 347,944 | |
Waste Management, Inc. | 4.100 | 03-01-45 | 1,471,000 | 1,520,805 | |
Wells Fargo & Company | 1.500 | 09-12-22 | EUR | 1,100,000 | 1,422,101 |
Wells Fargo & Company | 2.000 | 04-27-26 | EUR | 1,200,000 | 1,577,901 |
Wells Fargo & Company | 2.625 | 08-16-22 | EUR | 500,000 | 678,028 |
Wells Fargo & Company | 4.100 | 06-03-26 | 571,000 | 588,047 | |
Wells Fargo & Company | 5.375 | 02-07-35 | 505,000 | 606,340 | |
WestRock MWV LLC | 8.200 | 01-15-30 | 567,000 | 777,086 | |
Williams Partners LP | 5.100 | 09-15-45 | 1,187,000 | 1,312,408 | |
WP Carey, Inc. | 2.000 | 01-20-23 | EUR | 500,000 | 644,244 |
WPX Energy, Inc. | 6.000 | 01-15-22 | 449,000 | 471,311 | |
WPX Energy, Inc. | 8.250 | 08-01-23 | 1,734,000 | 1,989,765 | |
Wyndham Worldwide Corp. | 4.500 | 04-01-27 | 344,000 | 345,560 | |
Wyndham Worldwide Corp. | 5.100 | 10-01-25 | 946,000 | 988,003 | |
XPO Logistics, Inc. (A) | 6.500 | 06-15-22 | 1,440,000 | 1,499,040 | |
Zayo Group LLC (A) | 5.750 | 01-15-27 | 803,000 | 816,089 | |
ZF North America Capital, Inc. | 2.250 | 04-26-19 | EUR | 600,000 | 763,999 |
ZF North America Capital, Inc. (A) | 4.750 | 04-29-25 | 670,000 | 690,100 | |
Virgin Islands 0.0% | 732,122 | ||||
Cheung Kong Infrastructure Finance BVI, Ltd. | 1.000 | 12-12-24 | EUR | 600,000 | 732,122 |
Contracts/Notional amount | Value | ||||
Purchased options 3.5% | $165,759,027 | ||||
(Cost $95,453,812) | |||||
Calls 3.0% | 143,059,464 | ||||
Exchange Traded Option on S&P 500 Index (Expiration Date: 12-18-20; Strike Price: $2,850.00; Notional Amount: 101,900) (C) | 1,019 | 34,508,435 | |||
Exchange Traded Option on S&P 500 Index (Expiration Date: 12-21-18; Strike Price: $2,600.00; Notional Amount: 280,000) (C) | 2,800 | 88,914,000 | |||
Exchange Traded Option on S&P 500 Index (Expiration Date: 3-16-18; Strike Price: $2,745.00; Notional Amount: 55,700) (C) | 557 | 5,734,315 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 41 |
Contracts/Notional amount | Value | ||||
Calls (continued) | |||||
Over the Counter Option on KOSPI 200 Index (Expiration Date: 3-9-18; Strike Price: KRW 321.60; Counterparty: JPMorgan Chase Bank) (C)(G) | 57,360,000 | $764,204 | |||
Over the Counter Option on KOSPI 200 Index (Expiration Date: 3-9-18; Strike Price: KRW 321.60; Counterparty: JPMorgan Chase Bank) (C)(G) | 325,040,000 | 4,330,492 | |||
Over the Counter Option on KOSPI 200 Index (Expiration Date: 3-9-18; Strike Price: KRW 322.00; Counterparty: Goldman Sachs) (C)(G) | 101,531,728 | 1,321,203 | |||
Over the Counter Option on KOSPI 200 Index (Expiration Date: 3-9-18; Strike Price: KRW 322.00; Counterparty: Goldman Sachs) (C)(G) | 61,464,526 | 799,820 | |||
Over the Counter Option on KOSPI 200 Index (Expiration Date: 3-9-18; Strike Price: KRW 322.00; Counterparty: Goldman Sachs) (C)(G) | 196,210,163 | 2,553,225 | |||
Over the Counter Option on KOSPI 200 Index (Expiration Date: 3-9-18; Strike Price: KRW 322.00; Counterparty: Goldman Sachs) (C)(G) | 317,671,768 | 4,133,770 | |||
Puts 0.5% | 22,699,563 | ||||
Exchange Traded Option on Euro STOXX 50 Index (Expiration Date: 12-20-19; Strike Price: EUR 3,200.00; Notional Amount: 64,370) (C) | 6,437 | 19,875,868 | |||
Exchange Traded Option on S&P 500 Index (Expiration Date: 3-16-18; Strike Price: $2,815.00; Notional Amount: 19,800) (C) | 198 | 806,850 | |||
Over the Counter Option on Sao Paulo Se Bovespa Index (Expiration Date: 2-15-18; Strike Price: BRL 73,785.50; Counterparty: Morgan Stanley & Company, Inc.) (C)(G) | 645 | 4,127 | |||
Over the Counter Option on Swiss Market Index (Expiration Date: 3-19-18; Strike Price: CHF 9,198.50; Counterparty: JPMorgan Chase Bank) (C)(G) | 7,743 | 1,161,745 | |||
Over the Counter Option on Swiss Market Index (Expiration Date: 3-19-18; Strike Price: CHF 9,234.25; Counterparty: JPMorgan Chase Bank) (C)(G) | 5,163 | 850,973 |
Shares | Value | ||||
Rights 0.0% | $12,940 | ||||
(Cost $0) | |||||
UniCredit SpA (Expiration Date: 2-22-18; Strike Price: EUR 16.34) (C) | 2,609,206 | 12,940 | |||
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 23.9% | $1,150,536,447 | ||||
(Cost $1,150,521,296) | |||||
Certificate of deposit 11.5% | 552,534,299 | ||||
ABN AMRO Bank NV | 1.816 | 02-02-18 | 30,000,000 | 29,997,120 | |
Bank of Montreal | 1.560 | 02-23-18 | 25,000,000 | 25,004,750 | |
China Construction Bank Corp. | 1.680 | 02-07-18 | 25,000,000 | 25,000,250 | |
China Construction Bank Corp. | 1.730 | 02-05-18 | 35,000,000 | 35,000,700 | |
Credit Suisse AG | 1.830 | 07-05-18 | 30,000,000 | 29,996,730 | |
Credit Suisse First Boston | 1.548 | 04-27-18 | 15,000,000 | 14,944,770 | |
Danske Bank A/S | 1.420 | 02-01-18 | 25,000,000 | 25,000,250 | |
Danske Bank A/S | 1.790 | 05-02-18 | 25,000,000 | 25,000,000 | |
First Abu Dhabi Bank PJSC | 1.420 | 02-12-18 | 48,000,000 | 47,996,544 | |
ING Bank NV | 1.400 | 02-20-18 | 15,000,000 | 14,998,845 | |
Mitsubishi UFJ Trust & Banking Corp. | 1.742 | 04-16-18 | 40,000,000 | 39,854,440 | |
Mizuho Bank, Ltd. | 1.570 | 03-01-18 | 10,000,000 | 10,000,900 | |
Mizuho Bank, Ltd. | 1.762 | 04-05-18 | 40,000,000 | 39,890,360 | |
Mizuho Bank, Ltd. | 1.802 | 04-23-18 | 40,000,000 | 39,855,040 |
42 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Yield* (%) | Maturity date | Par value^ | Value | ||
Certificate of deposit (continued) | |||||
Natixis SA | 1.610 | 03-15-18 | 25,000,000 | $25,059,250 | |
Santander UK PLC | 1.820 | 07-03-18 | 25,000,000 | 24,969,900 | |
Standard Chartered PLC | 1.430 | 02-21-18 | 25,000,000 | 24,977,625 | |
Standard Chartered PLC | 1.560 | 04-19-18 | 25,000,000 | 24,991,550 | |
Sumitomo Mitsui Financial Group, Inc. | 1.560 | 02-26-18 | 25,000,000 | 25,001,250 | |
The Toronto-Dominion Bank | 1.760 | 05-16-18 | 25,000,000 | 24,994,025 | |
Commercial paper 5.7% | 274,432,895 | ||||
Agence Centrale Organismes | 1.454 | 02-05-18 | 25,000,000 | 24,994,325 | |
Agence Centrale Organismes | 1.568 | 02-13-18 | 25,000,000 | 24,985,250 | |
Bank Nederlandse Gemeenten NV | 1.508 | 02-08-18 | 30,000,000 | 29,989,800 | |
Dekabank Deutsche Girozentrale | 1.544 | 02-09-18 | 30,000,000 | 29,987,490 | |
ING Bank NV | 1.663 | 04-03-18 | 35,000,000 | 34,900,180 | |
Nationwide Building Society | 1.430 | 02-14-18 | 30,000,000 | 29,982,090 | |
OP Corporate Bank PLC | 1.713 | 04-17-18 | 20,000,000 | 19,923,620 | |
SOC Nat Des Chemins de Fer Francais | 1.713 | 04-27-18 | 30,000,000 | 29,892,240 | |
UBS AG | 1.833 | 07-10-18 | 25,000,000 | 24,799,000 | |
UBS Group AG | 1.516 | 02-20-18 | 25,000,000 | 24,978,900 | |
Time deposits 4.4% | 211,133,028 | ||||
BNP Paribas SA | 1.420 | 02-01-18 | 40,969,958 | 40,969,958 | |
DBS Bank, Ltd. | 1.650 | 02-05-18 | 10,031,650 | 10,031,650 | |
DBS Bank, Ltd. | 1.650 | 02-07-18 | 15,067,706 | 15,067,706 | |
DZ Bank AG | 1.420 | 02-01-18 | 72,649,373 | 72,649,373 | |
KBC Bank NV | 1.400 | 02-01-18 | 72,414,341 | 72,414,341 | |
U.S. Government 1.6% | 75,800,552 | ||||
U.S. Treasury Bill (D) | 1.065 | 02-15-18 | 75,836,200 | 75,800,552 |
Yield (%) | Shares | Value | |||
Money market funds 0.7% | 36,635,673 | ||||
Federated Government Obligations Fund, Institutional Class | 1.1757(H) | 36,635,673 | 36,635,673 | ||
Total investments (Cost $4,333,492,716) 98.9% | $4,757,448,483 | ||||
Other assets and liabilities, net 1.1% | 51,913,726 | ||||
Total net assets 100.0% | $4,809,362,209 |
The percentage shown for each investment category is the total value of the category as a percentage of the net assets of the fund. | |
^All par values are denominated in U.S. dollars unless otherwise indicated. | |
Currency Abbreviations | |
ARS | Argentine Peso |
BRL | Brazilian Real |
CHF | Swiss Franc |
COP | Colombian Peso |
CZK | Czech Republic Koruna |
DOP | Dominican Republic Peso |
EUR | Euro |
GBP | Pound Sterling |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 43 |
IDR | Indonesian Rupiah |
KRW | Korean Won |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
PEN | Peruvian Nuevo Sol |
PLN | Polish Zloty |
THB | Thai Bhat |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Security Abbreviations and Legend | |
ADR | American Depositary Receipt |
EURIBOR | Euro Interbank Offered Rate |
ISDAFIX | International Swaps and Derivatives Association Fixed Interest Rate Swap Rate |
LIBOR | London Interbank Offered Rate |
PIK | Pay-in-Kind Security - Represents a payment-in-kind which may pay interest in additional par and/or cash. Rates shown are the current rate and most recent payment rate. |
(A) | These securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. |
(B) | Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
(C) | Non-income producing security. |
(D) | All or a portion of this security is segregated at the custodian as collateral for certain derivatives. |
(E) | Variable rate obligation. The coupon rate shown represents the rate at period end. |
(F) | Perpetual bonds have no stated maturity date. Date shown as maturity date is next call date. |
(G) | For this type of option, notional amounts are equivalent to number of contracts. |
(H) | The rate shown is the annualized seven-day yield as of 1-31-18. |
* | Yield represents either the annualized yield at the date of purchase, the stated coupon rate or, for floating rate securities, the rate at period end. |
44 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Open contracts | Number of contracts | Position | Expiration date | Notional basis* | Notional value* | Unrealized appreciation (depreciation) |
3-Year Australian Treasury Bond Futures | 9,867 | Long | Mar 2018 | $887,564,353 | $882,456,854 | $(5,107,499) |
Euro-BTP Italian Government Bond Futures | 637 | Long | Mar 2018 | 107,616,130 | 107,542,784 | (73,346) |
Long Gilt Futures | 3,244 | Long | Mar 2018 | 572,361,122 | 562,575,834 | (9,785,288) |
Mini MSCI Emerging Markets Index Futures | 5,238 | Long | Mar 2018 | 317,623,823 | 329,417,820 | 11,793,997 |
S&P 500 Index E-Mini Futures | 445 | Long | Mar 2018 | 59,048,674 | 62,872,938 | 3,824,264 |
S&P MidCap 400 Index E-Mini Futures | 847 | Long | Mar 2018 | 160,088,452 | 165,520,740 | 5,432,288 |
Tokyo Price Index Futures | 1,546 | Long | Mar 2018 | 253,083,438 | 261,757,704 | 8,674,266 |
10-Year U.S. Treasury Note Futures | 4 | Short | Mar 2018 | (497,188) | (486,313) | 10,875 |
30-Year U.S. Treasury Bond Futures | 4 | Short | Mar 2018 | (613,250) | (591,250) | 22,000 |
Euro STOXX 50 Index Futures | 19,522 | Short | Mar 2018 | (866,492,607) | (873,041,369) | (6,548,762) |
Euro-BOBL Futures | 4,553 | Short | Mar 2018 | (748,083,662) | (737,409,180) | 10,674,482 |
Euro-BUND Futures | 1,305 | Short | Mar 2018 | (264,266,989) | (257,325,313) | 6,941,676 |
FTSE 100 Index Futures | 4,556 | Short | Mar 2018 | (485,270,243) | (483,351,299) | 1,918,944 |
OMX Stockholm 30 Index Futures | 3,339 | Short | Feb 2018 | (68,761,691) | (67,402,342) | 1,359,349 |
Russell 2000 Mini Index Futures | 6,247 | Short | Mar 2018 | (475,290,837) | (492,263,600) | (16,972,763) |
$12,164,483 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
AUD | 6,157,404 | USD | 4,667,930 | JPMorgan Chase | 2/14/2018 | $293,493 | — |
AUD | 933,208 | USD | 735,736 | Goldman Sachs | 2/14/2018 | 16,211 | — |
AUD | 2,609,831 | USD | 1,977,250 | HSBC | 2/14/2018 | 125,662 | — |
AUD | 2,615,122 | USD | 1,981,627 | JPMorgan Chase | 2/14/2018 | 125,547 | — |
AUD | 1,762,807 | USD | 1,346,599 | Merrill Lynch | 2/14/2018 | 73,809 | — |
BRL | 7,000,000 | USD | 2,226,463 | Deutsche Bank | 2/8/2018 | — | $(30,691) |
BRL | 39,000,000 | USD | 11,810,666 | Goldman Sachs | 2/8/2018 | 422,919 | — |
BRL | 237,000,000 | USD | 71,854,696 | Citibank N.A. | 3/9/2018 | 2,268,704 | — |
BRL | 127,000,000 | USD | 38,690,023 | JPMorgan Chase | 3/12/2018 | 1,018,024 | — |
BRL | 48,000,000 | USD | 15,221,183 | Deutsche Bank | 3/12/2018 | — | (213,417) |
CAD | 4,278,521 | USD | 3,364,005 | JPMorgan Chase | 2/14/2018 | 114,919 | — |
CAD | 644,844 | USD | 502,583 | Deutsche Bank | 2/14/2018 | 21,749 | — |
CAD | 168,265 | USD | 131,319 | HSBC | 2/14/2018 | 5,500 | — |
CAD | 1,738,215 | USD | 1,354,147 | JPMorgan Chase | 2/14/2018 | 59,220 | — |
CHF | 82,000,000 | USD | 85,892,655 | BNP Paribas | 4/19/2018 | 2,738,414 | — |
EUR | 12,319,817 | SEK | 121,152,500 | Citibank N.A. | 2/5/2018 | — | (79,243) |
EUR | 4,048,722 | SEK | 39,847,500 | HSBC | 2/5/2018 | — | (30,175) |
EUR | 15,227,754 | SEK | 149,747,500 | Citibank N.A. | 2/9/2018 | — | (97,959) |
EUR | 5,004,367 | SEK | 49,252,500 | HSBC | 2/9/2018 | — | (37,309) |
EUR | 222,597 | USD | 274,943 | Deutsche Bank | 2/5/2018 | 1,473 | — |
EUR | 8,384,094 | USD | 9,991,603 | BNP Paribas | 2/14/2018 | 425,032 | — |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 45 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
EUR | 2,019,223 | USD | 2,400,145 | JPMorgan Chase | 2/14/2018 | $108,595 | — |
EUR | 6,967,779 | USD | 8,300,221 | Citibank N.A. | 2/14/2018 | 356,745 | — |
EUR | 2,674,231 | USD | 3,194,591 | JPMorgan Chase | 2/14/2018 | 127,950 | — |
EUR | 1,921,270 | USD | 2,285,566 | Morgan Stanley | 2/14/2018 | 101,474 | — |
EUR | 210,113 | USD | 252,506 | BNP Paribas | 4/18/2018 | 9,666 | — |
EUR | 734,515 | USD | 916,344 | JPMorgan Chase | 4/18/2018 | 163 | — |
EUR | 587,219 | USD | 722,994 | Morgan Stanley | 4/18/2018 | 9,720 | — |
GBP | 1,397,986 | USD | 1,878,361 | JPMorgan Chase | 2/14/2018 | 107,381 | — |
GBP | 2,307,964 | USD | 3,092,110 | JPMorgan Chase | 2/14/2018 | 186,193 | — |
GBP | 4,214,683 | USD | 5,675,693 | Morgan Stanley | 2/14/2018 | 310,972 | — |
GBP | 161,071 | USD | 217,589 | Societe Generale | 2/14/2018 | 11,201 | — |
GBP | 46,440,000 | USD | 64,523,736 | JPMorgan Chase | 3/5/2018 | 1,484,526 | — |
GBP | 353,624 | USD | 505,683 | Morgan Stanley | 4/18/2018 | — | $(2,110) |
HKD | 68,462,516 | USD | 8,771,629 | JPMorgan Chase | 2/14/2018 | — | (17,513) |
HKD | 9,969,989 | USD | 1,276,983 | HSBC | 2/14/2018 | — | (2,147) |
HKD | 17,120,120 | USD | 2,195,586 | JPMorgan Chase | 2/14/2018 | — | (6,483) |
HKD | 15,192,493 | USD | 1,946,965 | Societe Generale | 2/14/2018 | — | (4,342) |
INR | 4,924,000,000 | USD | 75,449,726 | BNP Paribas | 2/9/2018 | 1,899,184 | — |
INR | 15,330,000,000 | USD | 235,429,629 | BNP Paribas | 3/12/2018 | 4,455,499 | — |
INR | 5,500,000,000 | USD | 83,404,344 | BNP Paribas | 3/23/2018 | 2,545,504 | — |
INR | 200,000,000 | USD | 3,125,537 | BNP Paribas | 4/13/2018 | — | (8,662) |
INR | 8,000,000,000 | USD | 122,405,120 | BNP Paribas | 4/20/2018 | 2,146,528 | — |
INR | 504,298,112 | USD | 7,818,091 | HSBC | 4/25/2018 | 27,750 | — |
JPY | 6,900,000,000 | USD | 61,212,112 | BNP Paribas | 2/7/2018 | 2,007,786 | — |
JPY | 6,900,000,000 | USD | 60,770,731 | JPMorgan Chase | 2/9/2018 | 2,455,452 | — |
JPY | 6,900,000,000 | USD | 60,795,592 | JPMorgan Chase | 2/13/2018 | 2,443,163 | — |
JPY | 72,086,519 | USD | 645,045 | JPMorgan Chase | 2/14/2018 | 15,663 | — |
JPY | 345,174,234 | USD | 3,083,003 | HSBC | 2/14/2018 | 80,689 | — |
JPY | 359,615,661 | USD | 3,198,085 | Merrill Lynch | 2/14/2018 | 97,970 | — |
JPY | 697,510,963 | USD | 6,254,314 | Morgan Stanley | 2/14/2018 | 138,718 | — |
JPY | 287,457,557 | USD | 2,564,489 | Societe Generale | 2/14/2018 | 70,201 | — |
JPY | 1,725,000,000 | USD | 15,276,593 | Citibank N.A. | 2/15/2018 | 534,668 | — |
JPY | 5,175,000,000 | USD | 45,784,702 | Deutsche Bank | 2/15/2018 | 1,649,079 | — |
JPY | 3,894,000,000 | USD | 34,508,734 | Deutsche Bank | 3/6/2018 | 1,218,311 | — |
JPY | 3,953,000,000 | USD | 34,963,118 | JPMorgan Chase | 3/9/2018 | 1,312,381 | — |
JPY | 3,953,000,000 | USD | 35,049,609 | Deutsche Bank | 3/13/2018 | 1,235,405 | — |
JPY | 1,400,000,000 | USD | 12,716,649 | Deutsche Bank | 4/27/2018 | 171,207 | — |
JPY | 1,300,000,000 | USD | 11,808,241 | HSBC | 4/27/2018 | 159,053 | — |
JPY | 1,230,000,000 | USD | 11,381,660 | Citibank N.A. | 5/11/2018 | — | (48,390) |
JPY | 1,240,000,000 | USD | 11,468,548 | HSBC | 5/11/2018 | — | (43,137) |
JPY | 1,220,000,000 | USD | 11,283,734 | Morgan Stanley | 5/11/2018 | — | (42,604) |
KRW | 41,250,000,000 | USD | 38,726,557 | BNP Paribas | 2/5/2018 | — | (96,097) |
KRW | 31,000,000,000 | USD | 28,992,284 | Deutsche Bank | 2/5/2018 | 39,092 | — |
KRW | 39,000,000,000 | USD | 35,215,821 | BNP Paribas | 3/9/2018 | 1,323,864 | — |
46 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
KRW | 84,000,000,000 | USD | 78,721,119 | BNP Paribas | 3/21/2018 | $405 | — |
KRW | 41,000,000,000 | USD | 38,324,992 | BNP Paribas | 4/16/2018 | 122,020 | — |
KRW | 99,000,000,000 | USD | 92,787,853 | UBS Warburg | 4/16/2018 | 47,615 | — |
RON | 33,298,817 | USD | 8,769,308 | Deutsche Bank | 4/26/2018 | 120,563 | — |
RUB | 1,836,852,777 | USD | 32,071,600 | HSBC | 4/26/2018 | 275,258 | — |
SEK | 161,000,000 | EUR | 16,591,136 | Citibank N.A. | 2/5/2018 | — | $(166,998) |
SEK | 645,000,000 | EUR | 65,969,126 | Citibank N.A. | 2/9/2018 | — | (49,271) |
SEK | 650,000,000 | EUR | 66,499,130 | Citibank N.A. | 2/13/2018 | — | (72,000) |
SEK | 640,000,000 | EUR | 65,750,252 | Citibank N.A. | 2/16/2018 | — | (411,016) |
SEK | 57,374,545 | EUR | 5,846,952 | HSBC | 4/19/2018 | 23,132 | — |
SEK | 29,051,873 | EUR | 2,968,614 | Merrill Lynch | 4/19/2018 | 1,753 | — |
SEK | 29,051,873 | EUR | 2,968,630 | Morgan Stanley | 4/19/2018 | 1,732 | — |
SEK | 29,781,075 | EUR | 3,028,244 | Societe Generale | 4/19/2018 | 20,368 | — |
SEK | 5,096,077 | USD | 607,996 | JPMorgan Chase | 2/14/2018 | 39,194 | — |
SEK | 4,936,138 | USD | 586,168 | Goldman Sachs | 2/14/2018 | 40,711 | — |
SEK | 5,649,873 | USD | 677,783 | HSBC | 2/14/2018 | 39,739 | — |
SEK | 14,030,311 | USD | 1,687,296 | Merrill Lynch | 2/14/2018 | 94,523 | — |
SEK | 1,957,258 | USD | 233,816 | Royal Bank of Scotland | 2/14/2018 | 14,752 | — |
SGD | 1,236,163 | USD | 916,971 | JPMorgan Chase | 2/14/2018 | 25,580 | — |
SGD | 2,758,377 | USD | 2,045,052 | HSBC | 2/14/2018 | 58,159 | — |
SGD | 709,902 | USD | 521,885 | JPMorgan Chase | 2/14/2018 | 19,402 | — |
SGD | 848,533 | USD | 630,295 | Societe Generale | 2/14/2018 | 16,695 | — |
USD | 22,839,779 | AUD | 29,846,596 | HSBC | 2/14/2018 | — | (1,209,576) |
USD | 1,246,291 | AUD | 1,632,059 | JPMorgan Chase | 2/14/2018 | — | (68,766) |
USD | 2,278,044 | AUD | 3,000,000 | Merrill Lynch | 3/12/2018 | — | (139,047) |
USD | 14,005,602 | BRL | 46,000,000 | Goldman Sachs | 2/8/2018 | — | (423,755) |
USD | 23,002,607 | BRL | 75,000,000 | Citibank N.A. | 3/9/2018 | — | (454,165) |
USD | 360,097 | CAD | 461,720 | JPMorgan Chase | 2/14/2018 | — | (15,334) |
USD | 534,274 | CAD | 677,630 | Goldman Sachs | 2/14/2018 | — | (16,717) |
USD | 9,535,446 | CAD | 12,137,846 | HSBC | 2/14/2018 | — | (334,006) |
USD | 1,283,295 | CAD | 1,645,869 | JPMorgan Chase | 2/14/2018 | — | (54,984) |
USD | 669,377 | CAD | 847,343 | Merrill Lynch | 3/9/2018 | — | (19,786) |
USD | 2,319,375 | CAD | 2,942,081 | Merrill Lynch | 3/12/2018 | — | (73,572) |
USD | 113,024,039 | CHF | 110,277,204 | HSBC | 3/12/2018 | — | (5,792,848) |
USD | 71,120,992 | CHF | 68,778,500 | Deutsche Bank | 4/19/2018 | — | (3,219,398) |
USD | 23,495,854 | CHF | 22,850,000 | Merrill Lynch | 4/19/2018 | — | (1,201,950) |
USD | 23,291,911 | CHF | 22,621,500 | Royal Bank of Canada | 4/19/2018 | — | (1,158,915) |
USD | 22,204,011 | CHF | 21,228,826 | Deutsche Bank | 4/23/2018 | — | (748,496) |
USD | 10,418,780 | CHF | 9,947,550 | Goldman Sachs | 4/23/2018 | — | (336,465) |
USD | 10,661,037 | CHF | 10,187,250 | Merrill Lynch | 4/23/2018 | — | (353,370) |
USD | 21,125,826 | CHF | 20,183,579 | Morgan Stanley | 4/23/2018 | — | (696,565) |
USD | 9,385,693 | CHF | 8,952,795 | Societe Generale | 4/23/2018 | — | (294,027) |
USD | 24,871,504 | CHF | 23,767,607 | Citibank N.A. | 4/25/2018 | — | (829,827) |
USD | 25,255,094 | CHF | 24,132,000 | Deutsche Bank | 4/25/2018 | — | (840,277) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 47 |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
USD | 25,254,275 | CHF | 24,132,000 | Merrill Lynch | 4/25/2018 | — | $(841,096) |
USD | 24,966,629 | CHF | 23,890,680 | Morgan Stanley | 4/25/2018 | — | (867,788) |
USD | 25,826,777 | CHF | 24,737,713 | UBS Warburg | 4/25/2018 | — | (923,588) |
USD | 1,591,207 | DKK | 10,083,050 | JPMorgan Chase | 3/9/2018 | — | (94,641) |
USD | 23,263,209 | DKK | 145,000,000 | BNP Paribas | 3/12/2018 | — | (986,070) |
USD | 2,180,602 | EUR | 1,829,593 | JPMorgan Chase | 2/14/2018 | — | (92,536) |
USD | 330,085 | EUR | 268,434 | HSBC | 2/14/2018 | — | (3,425) |
USD | 51,089,482 | EUR | 43,922,476 | Merrill Lynch | 2/14/2018 | — | (3,481,046) |
USD | 64,077 | EUR | 52,223 | Morgan Stanley | 2/14/2018 | — | (807) |
USD | 2,304,515 | EUR | 1,942,334 | Royal Bank of Scotland | 2/14/2018 | — | (108,696) |
USD | 395,817 | EUR | 334,174 | UBS Warburg | 2/14/2018 | — | (19,371) |
USD | 8,037,702 | EUR | 6,800,000 | JPMorgan Chase | 3/12/2018 | — | (424,811) |
USD | 278,365,476 | EUR | 233,000,000 | Citibank N.A. | 3/12/2018 | — | (11,600,028) |
USD | 242,419,835 | EUR | 203,200,000 | Merrill Lynch | 3/12/2018 | — | (10,459,952) |
USD | 40,036,819 | EUR | 33,900,000 | BNP Paribas | 3/20/2018 | — | (2,176,804) |
USD | 95,607,785 | EUR | 79,200,000 | Deutsche Bank | 4/17/2018 | — | (3,209,250) |
USD | 208,665,802 | EUR | 173,669,807 | Citibank N.A. | 4/18/2018 | — | (8,034,312) |
USD | 38,801,935 | EUR | 32,286,704 | Deutsche Bank | 4/18/2018 | — | (1,484,471) |
USD | 123,287,010 | EUR | 100,000,000 | Barclays Capital | 5/2/2018 | — | (1,603,414) |
USD | 246,621,840 | EUR | 200,000,000 | Goldman Sachs | 5/2/2018 | — | (3,159,008) |
USD | 123,324,710 | EUR | 100,000,000 | Societe Generale | 5/2/2018 | — | (1,565,714) |
USD | 12,743,554 | GBP | 9,400,000 | JPMorgan Chase | 2/8/2018 | — | (605,763) |
USD | 101,569,801 | GBP | 76,145,503 | Merrill Lynch | 2/8/2018 | — | (6,567,481) |
USD | 18,168,124 | GBP | 13,780,292 | Citibank N.A. | 2/14/2018 | — | (1,405,825) |
USD | 1,602,456 | GBP | 1,192,574 | JPMorgan Chase | 2/14/2018 | — | (91,513) |
USD | 2,056,678 | GBP | 1,528,992 | Royal Bank of Scotland | 2/14/2018 | — | (115,149) |
USD | 7,980 | GBP | 5,921 | Societe Generale | 2/14/2018 | — | (431) |
USD | 56,490,579 | GBP | 43,000,000 | Barclays Capital | 2/21/2018 | — | (4,602,519) |
USD | 62,218,454 | GBP | 46,440,000 | HSBC | 3/5/2018 | — | (3,789,808) |
USD | 132,007,142 | GBP | 100,500,000 | Citibank N.A. | 3/7/2018 | — | (10,853,071) |
USD | 48,941,968 | GBP | 36,120,000 | JPMorgan Chase | 3/8/2018 | — | (2,404,733) |
USD | 110,792,074 | GBP | 81,600,000 | JPMorgan Chase | 3/12/2018 | — | (5,228,025) |
USD | 62,615,609 | GBP | 46,440,000 | Merrill Lynch | 3/12/2018 | — | (3,413,476) |
USD | 56,962,401 | GBP | 43,000,000 | Merrill Lynch | 3/22/2018 | — | (4,203,185) |
USD | 22,104,481 | GBP | 16,336,370 | HSBC | 4/18/2018 | — | (1,159,087) |
USD | 29,415,460 | GBP | 21,000,000 | Citibank N.A. | 5/2/2018 | — | (505,180) |
USD | 875,377 | HKD | 6,841,221 | Merrill Lynch | 2/14/2018 | $608 | — |
USD | 28,447,752 | HKD | 221,595,243 | Societe Generale | 2/14/2018 | 112,972 | — |
USD | 16,851,326 | HKD | 131,510,917 | JPMorgan Chase | 3/12/2018 | 25,328 | — |
USD | 3,503,541 | IDR | 47,000,000,000 | Merrill Lynch | 5/2/2018 | 15,483 | — |
USD | 85,682,461 | INR | 5,500,000,000 | BNP Paribas | 3/12/2018 | — | (382,001) |
USD | 85,777,885 | INR | 5,500,000,000 | BNP Paribas | 3/23/2018 | — | (171,962) |
USD | 31,101,781 | INR | 2,000,000,000 | BNP Paribas | 4/20/2018 | — | (36,131) |
USD | 93,358,623 | INR | 6,000,000,000 | UBS Warburg | 4/20/2018 | — | (55,113) |
48 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
USD | 12,245,974 | INR | 790,000,000 | BNP Paribas | 5/2/2018 | — | $(32,617) |
USD | 11,318,122 | JPY | 1,230,000,000 | Citibank N.A. | 2/7/2018 | $48,488 | — |
USD | 28,993,361 | JPY | 3,210,000,000 | Deutsche Bank | 2/7/2018 | — | (417,635) |
USD | 11,404,585 | JPY | 1,240,000,000 | HSBC | 2/7/2018 | 43,328 | — |
USD | 11,220,849 | JPY | 1,220,000,000 | Morgan Stanley | 2/7/2018 | 42,838 | — |
USD | 37,266,127 | JPY | 4,235,072,090 | BNP Paribas | 2/14/2018 | — | (1,550,397) |
USD | 1,336,827 | JPY | 148,996,164 | Barclays Capital | 2/14/2018 | — | (28,796) |
USD | 734,837 | JPY | 82,513,837 | Morgan Stanley | 3/12/2018 | — | (22,517) |
USD | 64,050,283 | KRW | 72,250,000,000 | UBS Warburg | 2/5/2018 | — | (3,611,553) |
USD | 16,495,440 | KRW | 18,359,424,482 | HSBC | 2/13/2018 | — | (699,814) |
USD | 29,546,065 | KRW | 33,000,000,000 | Deutsche Bank | 3/6/2018 | — | (1,370,084) |
USD | 14,009,683 | KRW | 15,000,000,000 | BNP Paribas | 3/9/2018 | — | (44,042) |
USD | 8,434,864 | KRW | 9,000,000,000 | Citibank N.A. | 3/9/2018 | 2,629 | — |
USD | 30,053,468 | KRW | 33,500,000,000 | JPMorgan Chase | 3/9/2018 | — | (1,333,184) |
USD | 29,945,472 | KRW | 33,500,000,000 | Deutsche Bank | 3/13/2018 | — | (1,443,927) |
USD | 76,547,559 | KRW | 84,000,000,000 | BNP Paribas | 3/21/2018 | — | (2,173,965) |
USD | 64,010,306 | KRW | 69,600,000,000 | BNP Paribas | 3/28/2018 | — | (1,226,052) |
USD | 32,106,780 | KRW | 34,804,712,241 | Barclays Capital | 3/28/2018 | — | (515,816) |
USD | 130,015,210 | KRW | 140,000,000,000 | BNP Paribas | 4/16/2018 | — | (1,267,270) |
USD | 34,827,872 | KRW | 36,958,292,471 | Barclays Capital | 4/23/2018 | 164,837 | — |
USD | 34,842,735 | KRW | 37,013,785,403 | Deutsche Bank | 4/23/2018 | 127,653 | — |
USD | 34,890,358 | KRW | 37,013,785,403 | JPMorgan Chase | 4/23/2018 | 175,277 | — |
USD | 38,798,712 | KRW | 41,250,000,000 | BNP Paribas | 5/4/2018 | 99,901 | — |
USD | 5,166,012 | MXN | 99,000,000 | Citibank N.A. | 5/2/2018 | — | (76,086) |
USD | 3,810,395 | MYR | 15,000,000 | Barclays Capital | 5/2/2018 | — | (24,835) |
USD | 4,355,804 | NOK | 35,262,413 | Goldman Sachs | 3/9/2018 | — | (223,051) |
USD | 6,312,005 | NOK | 52,350,000 | Royal Bank of Scotland | 3/12/2018 | — | (486,429) |
USD | 5,071,260 | RUB | 290,000,000 | Deutsche Bank | 5/4/2018 | — | (30,909) |
USD | 7,685,429 | SEK | 64,412,235 | Citibank N.A. | 2/14/2018 | — | (494,786) |
USD | 582,445 | SEK | 4,881,228 | Societe Generale | 2/14/2018 | — | (37,460) |
USD | 26,868,558 | SEK | 223,047,343 | Citibank N.A. | 3/9/2018 | — | (1,500,098) |
USD | 7,544,914 | SEK | 62,932,484 | Royal Bank of Scotland | 3/12/2018 | — | (461,143) |
USD | 280,123 | SGD | 376,560 | JPMorgan Chase | 2/14/2018 | — | (6,997) |
USD | 77,172 | SGD | 105,167 | Goldman Sachs | 2/14/2018 | — | (3,015) |
USD | 1,573,467 | SGD | 2,123,536 | HSBC | 2/14/2018 | — | (45,689) |
USD | 308,010 | SGD | 417,327 | JPMorgan Chase | 2/14/2018 | — | (10,193) |
USD | 6,517,038 | SGD | 8,880,922 | Societe Generale | 2/14/2018 | — | (254,498) |
USD | 1,618,986 | SGD | 2,200,000 | HSBC | 3/9/2018 | — | (59,229) |
USD | 998,343 | SGD | 1,345,000 | JPMorgan Chase | 3/12/2018 | — | (27,728) |
USD | 17,442,055 | TWD | 520,000,000 | Merrill Lynch | 3/12/2018 | — | (429,028) |
$38,373,372 | $(136,377,534) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 49 |
Options on index | ||||||||
Counterparty (OTC)/ Exchange- traded | Name of issuer | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | |
Calls | ||||||||
Barclays Capital | FTSE 100 Index | GBP | 7,640.00 | Feb 2018 | 370 | 370 | $28,781 | $(10,532) |
Barclays Capital | S&P 500 Index | USD | 2,700.00 | Feb 2018 | 1,810 | 1,810 | 40,424 | (224,096) |
Barclays Capital | S&P 500 Index | USD | 2,700.00 | Feb 2018 | 3,016 | 3,016 | 72,384 | (373,222) |
Barclays Capital | S&P 500 Index | USD | 2,700.00 | Feb 2018 | 603 | 603 | 14,774 | (74,606) |
Barclays Capital | S&P 500 Index | USD | 2,830.00 | Feb 2018 | 3,789 | 3,789 | 140,193 | (113,051) |
BNP Paribas Securities Corp. | FTSE 100 Index | GBP | 7,560.00 | Mar 2018 | 370 | 370 | 33,885 | (33,885) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 22,780.00 | Feb 2018 | 10,000 | 10,000 | 34,523 | (29,155) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 23,425.00 | Feb 2018 | 10,000 | 10,000 | 31,886 | (432) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 23,425.00 | Feb 2018 | 10,000 | 10,000 | 32,552 | (1,697) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 23,425.00 | Feb 2018 | 10,000 | 10,000 | 33,660 | (3,242) |
Deutsche Bank AG | Nikkei 225 Index | JPY | 23,150.00 | Mar 2018 | 18,444 | 18,444 | 68,593 | (68,593) |
Goldman Sachs | S&P 500 Index | USD | 2,685.00 | Feb 2018 | 1,207 | 1,207 | 31,574 | (167,544) |
Goldman Sachs | S&P 500 Index | USD | 2,843.00 | Feb 2018 | 3,789 | 3,789 | 113,291 | (77,384) |
Goldman Sachs | S&P 500 Index | USD | 2,865.00 | Feb 2018 | 3,789 | 3,789 | 117,459 | (58,379) |
JPMorgan Chase Bank | Swiss Market Index | CHF | 9,198.50 | Mar 2018 | 7,743 | 7,743 | 1,679,355 | (1,508,578) |
JPMorgan Chase Bank | Swiss Market Index | CHF | 9,234.25 | Mar 2018 | 5,163 | 5,163 | 1,129,520 | (883,668) |
Merrill Lynch | S&P 500 Index | USD | 2,840.00 | Mar 2018 | 3,789 | 3,789 | 132,615 | (132,615) |
Morgan Stanley & Company, Inc. | FTSE 100 Index | GBP | 7,647.00 | Feb 2018 | 201 | 201 | 17,848 | — |
Morgan Stanley & Company, Inc. | Ibovespa Brasil Index | BRL | 73,785.59 | Feb 2018 | 645 | 645 | 546,908 | (2,283,069) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,685.00 | Feb 2018 | 200 | 200 | 17,376 | (1) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,685.00 | Feb 2018 | 200 | 200 | 17,837 | (52) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,685.00 | Feb 2018 | 199 | 199 | 18,260 | (241) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,645.00 | Feb 2018 | 370 | 370 | 26,172 | (10,755) |
Societe Generale Paris | Nikkei 225 Index | JPY | 23,570.00 | Feb 2018 | 18,444 | 18,444 | 66,310 | (27,635) |
Societe Generale Paris | Nikkei 225 Index | JPY | 23,640.00 | Feb 2018 | 18,444 | 18,444 | 63,305 | (25,375) |
UBS AG | FTSE 100 Index | GBP | 7,675.00 | Feb 2018 | 370 | 370 | 27,103 | (8,518) |
UBS AG | FTSE 100 Index | GBP | 7,645.00 | Feb 2018 | 370 | 370 | 32,524 | (12,353) |
UBS AG | Nikkei 225 Index | JPY | 23,665.00 | Feb 2018 | 18,444 | 18,444 | 66,695 | (21,464) |
50 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Options on index (continued) | ||||||||
Counterparty (OTC)/ Exchange- traded | Name of issuer | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | |
UBS AG | Nikkei 225 Index | JPY | 23,315.00 | Feb 2018 | 18,444 | 18,444 | $65,826 | $(46,495) |
UBS AG | S&P 500 Index | USD | 2,720.00 | Feb 2018 | 2,413 | 2,413 | 55,378 | (250,330) |
UBS AG | S&P 500 Index | USD | 2,720.00 | Feb 2018 | 3,017 | 3,017 | 74,671 | (312,839) |
UBS AG | S&P 500 Index | USD | 2,850.00 | Feb 2018 | 3,789 | 3,789 | 111,586 | (78,640) |
$4,943,268 | $(6,838,446) | |||||||
Exchange-traded | S&P 500 Index | USD | 2,815.00 | Mar 2018 | 198 | 19,800 | 860,916 | (1,020,690) |
$860,916 | $(1,020,690) | |||||||
Puts | ||||||||
Barclays Capital | FTSE 100 Index | GBP | 7,640.00 | Feb 2018 | 370 | 370 | $50,859 | $(89,388) |
Barclays Capital | S&P 500 Index | USD | 2,700.00 | Feb 2018 | 1,810 | 1,810 | 32,580 | — |
Barclays Capital | S&P 500 Index | USD | 2,700.00 | Feb 2018 | 3,016 | 3,016 | 57,304 | — |
Barclays Capital | S&P 500 Index | USD | 2,700.00 | Feb 2018 | 603 | 603 | 11,759 | (6) |
Barclays Capital | S&P 500 Index | USD | 2,830.00 | Feb 2018 | 3,789 | 3,789 | 142,845 | (137,091) |
BNP Paribas Securities Corp. | FTSE 100 Index | GBP | 7,560.00 | Mar 2018 | 370 | 370 | 58,171 | (58,171) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 22,780.00 | Feb 2018 | 10,000 | 10,000 | 34,550 | — |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 23,425.00 | Feb 2018 | 10,000 | 10,000 | 31,886 | (30,362) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 23,425.00 | Feb 2018 | 10,000 | 10,000 | 32,552 | (31,629) |
BNP Paribas Securities Corp. | Nikkei 225 Index | JPY | 23,425.00 | Feb 2018 | 10,000 | 10,000 | 33,660 | (33,175) |
Deutsche Bank AG | Nikkei 225 Index | JPY | 23,150.00 | Mar 2018 | 18,444 | 18,444 | 67,579 | (67,579) |
Goldman Sachs | KOSPI 200 Index | KRW | 322.00 | Mar 2018 | 101,531,728 | 101,531,728 | 631,416 | (172,493) |
Goldman Sachs | KOSPI 200 Index | KRW | 322.00 | Mar 2018 | 196,210,163 | 196,210,163 | 1,221,271 | (333,343) |
Goldman Sachs | KOSPI 200 Index | KRW | 322.00 | Mar 2018 | 61,464,526 | 61,464,526 | 382,924 | (104,423) |
Goldman Sachs | KOSPI 200 Index | KRW | 322.00 | Mar 2018 | 317,671,768 | 317,671,768 | 1,977,824 | (539,695) |
Goldman Sachs | S&P 500 Index | USD | 2,685.00 | Feb 2018 | 1,207 | 1,207 | 23,537 | — |
Goldman Sachs | S&P 500 Index | USD | 2,843.00 | Feb 2018 | 3,789 | 3,789 | 113,670 | (150,304) |
Goldman Sachs | S&P 500 Index | USD | 2,865.00 | Feb 2018 | 3,789 | 3,789 | 119,354 | (196,189) |
JPMorgan Chase Bank | KOSPI 200 Index | KRW | 321.60 | Mar 2018 | 325,040,000 | 325,040,000 | 2,380,593 | (532,055) |
JPMorgan Chase Bank | KOSPI 200 Index | KRW | 321.60 | Mar 2018 | 57,360,000 | 57,360,000 | 419,479 | (93,892) |
Merrill Lynch | S&P 500 Index | USD | 2,840.00 | Mar 2018 | 3,789 | 3,789 | 133,752 | (133,752) |
Morgan Stanley & Company, Inc. | FTSE 100 Index | GBP | 7,647.00 | Feb 2018 | 201 | 201 | 16,973 | (32,377) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,685.00 | Feb 2018 | 200 | 200 | 16,834 | (42,911) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,685.00 | Feb 2018 | 200 | 200 | 17,268 | (42,930) |
Societe Generale Paris | FTSE 100 Index | GBP | 7,685.00 | Feb 2018 | 199 | 199 | 17,640 | (42,872) |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 51 |
Options on index (continued) | ||||||||
Counterparty (OTC)/ Exchange- traded | Name of issuer | Exercise price | Expiration date | Number of contracts | Notional amount | Premium | Value | |
Societe Generale Paris | FTSE 100 Index | GBP | 7,645.00 | Feb 2018 | 370 | 370 | $51,633 | $(92,175) |
Societe Generale Paris | Nikkei 225 Index | JPY | 23,570.00 | Feb 2018 | 18,444 | 18,444 | 67,862 | (107,556) |
Societe Generale Paris | Nikkei 225 Index | JPY | 23,640.00 | Feb 2018 | 18,444 | 18,444 | 65,675 | (119,239) |
UBS AG | FTSE 100 Index | GBP | 7,675.00 | Feb 2018 | 370 | 370 | 50,088 | (105,634) |
UBS AG | FTSE 100 Index | GBP | 7,645.00 | Feb 2018 | 370 | 370 | 53,605 | (93,651) |
UBS AG | Nikkei 225 Index | JPY | 23,665.00 | Feb 2018 | 18,444 | 18,444 | 66,779 | (117,426) |
UBS AG | Nikkei 225 Index | JPY | 23,315.00 | Feb 2018 | 18,444 | 18,444 | 68,537 | (85,449) |
UBS AG | S&P 500 Index | USD | 2,720.00 | Feb 2018 | 2,413 | 2,413 | 47,536 | (52) |
UBS AG | S&P 500 Index | USD | 2,720.00 | Feb 2018 | 3,017 | 3,017 | 60,038 | (524) |
UBS AG | S&P 500 Index | USD | 2,850.00 | Feb 2018 | 3,789 | 3,789 | 111,586 | (158,108) |
$8,669,619 | $(3,744,451) | |||||||
Exchange-traded | S&P 500 Index | USD | 2,745.00 | Mar 2018 | 557 | 55,700 | 2,282,619 | (1,244,895) |
$2,282,619 | $(1,244,895) | |||||||
$16,756,422 | $(12,848,482) |
Interest rate swaps | ||||||||||
Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Deutsche Bank AG | 2,535,000,000 | CLP | CLICP | Fixed 4.020% | Semi-Annual | Semi-Annual | Sep 2027 | — | $13,340 | $13,340 |
Goldman Sachs | 2,614,000,000 | CLP | CLICP | Fixed 4.030% | Semi-Annual | Semi-Annual | Sep 2027 | — | 18,419 | 18,419 |
Goldman Sachs | 3,601,000,000 | CLP | CLICP | Fixed 4.038% | Semi-Annual | Semi-Annual | Sep 2027 | — | 27,361 | 27,361 |
— | $59,120 | $59,120 | ||||||||
Centrally cleared | 217,200,000 | CAD | 3 month CDOR | Fixed 1.879% | Semi-Annual | Semi-Annual | Oct 2019 | — | (601,558) | (601,558) |
Centrally cleared | 144,800,000 | CAD | 3 month CDOR | Fixed 1.840% | Semi-Annual | Semi-Annual | Oct 2019 | — | (498,834) | (498,834) |
Centrally cleared | 1,356,000,000 | SEK | Fixed -0.213% | 3 month STIBOR | Annual | Quarterly | Oct 2019 | — | 219,421 | 219,421 |
Centrally cleared | 904,000,000 | SEK | Fixed -0.220% | 3 month STIBOR | Annual | Quarterly | Oct 2019 | — | 163,019 | 163,019 |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.830% | Semi-Annual | Semi-Annual | Oct 2019 | — | (267,124) | (267,124) |
Centrally cleared | 452,000,000 | SEK | Fixed -0.222% | 3 month STIBOR | Annual | Quarterly | Oct 2019 | — | 92,032 | 92,032 |
Centrally cleared | 217,200,000 | CAD | 3 month CDOR | Fixed 1.775% | Semi-Annual | Semi-Annual | Nov 2019 | — | (1,017,741) | (1,017,741) |
Centrally cleared | 144,800,000 | CAD | 3 month CDOR | Fixed 1.800% | Semi-Annual | Semi-Annual | Nov 2019 | — | (622,725) | (622,725) |
Centrally cleared | 1,356,000,000 | SEK | Fixed -0.247% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 140,993 | 140,993 |
Centrally cleared | 144,800,000 | CAD | 3 month CDOR | Fixed 1.795% | Semi-Annual | Semi-Annual | Nov 2019 | — | (639,982) | (639,982) |
Centrally cleared | 904,000,000 | SEK | Fixed -0.245% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 87,552 | 87,552 |
Centrally cleared | 217,200,000 | CAD | 3 month CDOR | Fixed 1.775% | Semi-Annual | Semi-Annual | Nov 2019 | — | (1,032,386) | (1,032,386) |
Centrally cleared | 904,000,000 | SEK | Fixed -0.257% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 115,808 | 115,808 |
Centrally cleared | 1,356,000,000 | SEK | Fixed -0.249% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 151,881 | 151,881 |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.780% | Semi-Annual | Semi-Annual | Nov 2019 | — | (344,011) | (344,011) |
52 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Interest rate swaps (continued) | ||||||||||
Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.800% | Semi-Annual | Semi-Annual | Nov 2019 | — | $(321,227) | $(321,227) |
Centrally cleared | 452,000,000 | SEK | Fixed -0.234% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 33,693 | 33,693 |
Centrally cleared | 452,000,000 | SEK | Fixed -0.222% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 19,570 | 19,570 |
Centrally cleared | 217,200,000 | CAD | 3 month CDOR | Fixed 1.810% | Semi-Annual | Semi-Annual | Nov 2019 | — | (939,723) | (939,723) |
Centrally cleared | 1,356,000,000 | SEK | Fixed -0.255% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 182,643 | 182,643 |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.760% | Semi-Annual | Semi-Annual | Nov 2019 | — | (392,756) | (392,756) |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.763% | Semi-Annual | Semi-Annual | Nov 2019 | — | (391,505) | (391,505) |
Centrally cleared | 452,000,000 | SEK | Fixed -0.245% | 3 month STIBOR | Annual | Quarterly | Nov 2019 | — | 60,349 | 60,349 |
Centrally cleared | 452,000,000 | SEK | Fixed -0.236% | 3 month STIBOR | Annual | Quarterly | Dec 2019 | — | 50,871 | 50,871 |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.835% | Semi-Annual | Semi-Annual | Dec 2019 | — | (315,035) | (315,035) |
Centrally cleared | 72,400,000 | CAD | 3 month CDOR | Fixed 1.871% | Semi-Annual | Semi-Annual | Dec 2019 | — | (277,917) | (277,917) |
Centrally cleared | 452,000,000 | SEK | Fixed -0.212% | 3 month STIBOR | Annual | Quarterly | Dec 2019 | — | 26,514 | 26,514 |
Centrally cleared | 452,000,000 | SEK | Fixed -0.223% | 3 month STIBOR | Annual | Quarterly | Dec 2019 | — | 41,981 | 41,981 |
Centrally cleared | 598,584,471 | USD | 3 month LIBOR | Fixed 2.020% | Semi-Annual | Quarterly | Apr 2021 | — | (7,746,461) | (7,746,461) |
Centrally cleared | 149,646,117 | USD | 3 month LIBOR | Fixed 2.000% | Semi-Annual | Quarterly | Apr 2021 | — | (1,993,406) | (1,993,406) |
Centrally cleared | 598,584,470 | USD | 3 month LIBOR | Fixed 2.020% | Semi-Annual | Quarterly | Apr 2021 | — | (7,773,398) | (7,773,398) |
Centrally cleared | 163,184,942 | USD | 3 month LIBOR | Fixed 2.070% | Semi-Annual | Quarterly | Apr 2021 | — | (1,962,234) | (1,962,234) |
Centrally cleared | 71,718,000 | AUD | 6 month BBSW | Fixed 2.565% | Semi-Annual | Semi-Annual | May 2021 | — | (82,479) | (82,479) |
Centrally cleared | 71,718,000 | AUD | 6 month BBSW | Fixed 2.500% | Semi-Annual | Semi-Annual | May 2021 | — | (157,485) | (157,485) |
Centrally cleared | 107,577,000 | AUD | 6 month BBSW | Fixed 2.486% | Semi-Annual | Semi-Annual | May 2021 | — | (260,647) | (260,647) |
Centrally cleared | 107,577,024 | AUD | 6 month BBSW | Fixed 2.357% | Semi-Annual | Semi-Annual | May 2021 | — | (478,263) | (478,263) |
Centrally cleared | 54,332,000 | AUD | 6 month BBSW | Fixed 2.375% | Semi-Annual | Semi-Annual | May 2021 | — | (229,276) | (229,276) |
Centrally cleared | 40,139,976 | AUD | 6 month BBSW | Fixed 2.385% | Semi-Annual | Semi-Annual | May 2021 | — | (163,452) | (163,452) |
Centrally cleared | 61,938,000 | AUD | 6 month BBSW | Fixed 2.375% | Semi-Annual | Semi-Annual | May 2021 | — | (261,747) | (261,747) |
Centrally cleared | 497,000,000 | USD | 3 month LIBOR | Fixed 1.985% | Semi-Annual | Quarterly | Jun 2021 | — | (6,894,881) | (6,894,881) |
Centrally cleared | 568,000,000 | USD | 3 month LIBOR | Fixed 1.985% | Semi-Annual | Quarterly | Jun 2021 | — | (7,910,479) | (7,910,479) |
Centrally cleared | 213,000,000 | USD | 3 month LIBOR | Fixed 1.929% | Semi-Annual | Quarterly | Jun 2021 | — | (3,191,251) | (3,191,251) |
Centrally cleared | 142,000,000 | USD | 3 month LIBOR | Fixed 1.955% | Semi-Annual | Quarterly | Jun 2021 | — | (2,054,144) | (2,054,144) |
Centrally cleared | 91,140,000 | AUD | 6 month BBSW | Fixed 2.350% | Semi-Annual | Semi-Annual | Jun 2021 | — | (447,482) | (447,482) |
Centrally cleared | 56,420,000 | AUD | 6 month BBSW | Fixed 2.325% | Semi-Annual | Semi-Annual | Jun 2021 | — | (299,685) | (299,685) |
Centrally cleared | 43,400,000 | AUD | 6 month BBSW | Fixed 2.395% | Semi-Annual | Semi-Annual | Jun 2021 | — | (186,193) | (186,193) |
Centrally cleared | 26,040,000 | AUD | 6 month BBSW | Fixed 2.456% | Semi-Annual | Semi-Annual | Jun 2021 | — | (87,248) | (87,248) |
Centrally cleared | 295,000,000 | AUD | 6 month BBSW | Fixed 2.766% | Semi-Annual | Semi-Annual | Sep 2021 | — | 70,981 | 70,981 |
Centrally cleared | 146,000,000 | AUD | 6 month BBSW | Fixed 2.725% | Semi-Annual | Semi-Annual | Oct 2021 | — | (96,235) | (96,235) |
Centrally cleared | 195,390,000 | AUD | 6 month BBSW | Fixed 2.400% | Semi-Annual | Semi-Annual | Nov 2021 | — | (1,170,356) | (1,170,356) |
Centrally cleared | 194,192,109 | AUD | 6 month BBSW | Fixed 2.386% | Semi-Annual | Semi-Annual | Dec 2021 | — | (1,210,469) | (1,210,469) |
Centrally cleared | 116,649,891 | AUD | 6 month BBSW | Fixed 2.409% | Semi-Annual | Semi-Annual | Dec 2021 | — | (686,401) | (686,401) |
Centrally cleared | 38,768,000 | AUD | 6 month BBSW | Fixed 2.446% | Semi-Annual | Semi-Annual | Dec 2021 | — | (208,101) | (208,101) |
Centrally cleared | 51,750,000 | CZK | Fixed 1.300% | 6 month PRIBOR | Annual | Semi-Annual | Oct 2022 | — | 50,510 | 50,510 |
Centrally cleared | 55,443,618 | CZK | Fixed 1.548% | 6 month PRIBOR | Annual | Semi-Annual | Oct 2022 | — | 24,557 | 24,557 |
Centrally cleared | 111,556,382 | CZK | Fixed 1.550% | 6 month PRIBOR | Annual | Semi-Annual | Oct 2022 | — | 49,698 | 49,698 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 53 |
Interest rate swaps (continued) | ||||||||||
Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | 245,565,004 | USD | Fixed 2.225% | 3 month LIBOR | Semi-Annual | Quarterly | Apr 2024 | — | $6,183,769 | $6,183,769 |
Centrally cleared | 61,391,001 | USD | Fixed 2.208% | 3 month LIBOR | Semi-Annual | Quarterly | Apr 2024 | — | 1,594,373 | 1,594,373 |
Centrally cleared | 245,565,003 | USD | Fixed 2.228% | 3 month LIBOR | Semi-Annual | Quarterly | Apr 2024 | — | 6,151,133 | 6,151,133 |
Centrally cleared | 64,478,992 | USD | Fixed 2.279% | 3 month LIBOR | Semi-Annual | Quarterly | Apr 2024 | — | 1,468,006 | 1,468,006 |
Centrally cleared | 201,250,000 | USD | Fixed 2.189% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2024 | — | 5,460,798 | 5,460,798 |
Centrally cleared | 230,000,000 | USD | Fixed 2.189% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2024 | — | 6,249,997 | 6,249,997 |
Centrally cleared | 86,250,000 | USD | Fixed 2.133% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2024 | — | 2,565,696 | 2,565,696 |
Centrally cleared | 57,500,000 | USD | Fixed 2.158% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2024 | — | 1,643,971 | 1,643,971 |
Centrally cleared | 164,000,000 | CZK | Fixed 1.020% | 6 month PRIBOR | Annual | Semi-Annual | Jun 2024 | — | 387,008 | 387,008 |
Centrally cleared | 24,600,000 | USD | Fixed 2.575% | 3 month LIBOR | Semi-Annual | Quarterly | Mar 2027 | — | 108,375 | 108,375 |
Centrally cleared | 8,460,000 | USD | 3 month LIBOR | Fixed 2.575% | Semi-Annual | Quarterly | Mar 2027 | $181,978 | (219,248) | (37,270) |
Centrally cleared | 13,640,000 | USD | 3 month LIBOR | Fixed 2.575% | Semi-Annual | Quarterly | Mar 2027 | 302,880 | (362,971) | (60,091) |
Centrally cleared | 23,325,000 | USD | Fixed 2.111% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2027 | — | 1,206,193 | 1,206,193 |
Centrally cleared | 23,325,000 | USD | Fixed 2.125% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2027 | — | 1,178,426 | 1,178,426 |
Centrally cleared | 42,000,000 | CAD | Fixed 2.357% | 3 month CDOR | Semi-Annual | Semi-Annual | Oct 2027 | — | 741,489 | 741,489 |
Centrally cleared | 28,000,000 | CAD | Fixed 2.325% | 3 month CDOR | Semi-Annual | Semi-Annual | Oct 2027 | — | 561,861 | 561,861 |
Centrally cleared | 256,800,000 | SEK | 3 month STIBOR | Fixed 1.190% | Annual | Quarterly | Oct 2027 | — | (426,456) | (426,456) |
Centrally cleared | 171,200,000 | SEK | 3 month STIBOR | Fixed 1.158% | Annual | Quarterly | Oct 2027 | — | (355,861) | (355,861) |
Centrally cleared | 14,000,000 | CAD | Fixed 2.356% | 3 month CDOR | Semi-Annual | Semi-Annual | Oct 2027 | — | 250,553 | 250,553 |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.212% | Annual | Quarterly | Oct 2027 | — | (125,878) | (125,878) |
Centrally cleared | 42,000,000 | CAD | Fixed 2.288% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 967,566 | 967,566 |
Centrally cleared | 28,000,000 | CAD | Fixed 2.301% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 619,940 | 619,940 |
Centrally cleared | 256,800,000 | SEK | 3 month STIBOR | Fixed 1.166% | Annual | Quarterly | Nov 2027 | — | (497,275) | (497,275) |
Centrally cleared | 28,000,000 | CAD | Fixed 2.280% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 667,048 | 667,048 |
Centrally cleared | 171,200,000 | SEK | 3 month STIBOR | Fixed 1.156% | Annual | Quarterly | Nov 2027 | — | (352,337) | (352,337) |
Centrally cleared | 42,000,000 | CAD | Fixed 2.257% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 1,069,283 | 1,069,283 |
Centrally cleared | 171,200,000 | SEK | 3 month STIBOR | Fixed 1.130% | Annual | Quarterly | Nov 2027 | — | (407,994) | (407,994) |
Centrally cleared | 256,800,000 | SEK | 3 month STIBOR | Fixed 1.133% | Annual | Quarterly | Nov 2027 | — | (601,602) | (601,602) |
Centrally cleared | 14,000,000 | CAD | Fixed 2.266% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 347,938 | 347,938 |
Centrally cleared | 14,000,000 | CAD | Fixed 2.297% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 316,545 | 316,545 |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.154% | Annual | Quarterly | Nov 2027 | — | (182,652) | (182,652) |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.175% | Annual | Quarterly | Nov 2027 | — | (161,061) | (161,061) |
Centrally cleared | 42,000,000 | CAD | Fixed 2.312% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 907,912 | 907,912 |
Centrally cleared | 256,800,000 | SEK | 3 month STIBOR | Fixed 1.152% | Annual | Quarterly | Nov 2027 | — | (557,681) | (557,681) |
Centrally cleared | 14,000,000 | CAD | Fixed 2.195% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 428,518 | 428,518 |
Centrally cleared | 14,000,000 | CAD | Fixed 2.209% | 3 month CDOR | Semi-Annual | Semi-Annual | Nov 2027 | — | 414,852 | 414,852 |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.090% | Annual | Quarterly | Nov 2027 | — | (260,049) | (260,049) |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.110% | Annual | Quarterly | Dec 2027 | — | (240,470) | (240,470) |
Centrally cleared | 14,000,000 | CAD | Fixed 2.268% | 3 month CDOR | Semi-Annual | Semi-Annual | Dec 2027 | — | 355,825 | 355,825 |
Centrally cleared | 14,000,000 | CAD | Fixed 2.285% | 3 month CDOR | Semi-Annual | Semi-Annual | Dec 2027 | — | 339,799 | 339,799 |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.110% | Annual | Quarterly | Dec 2027 | — | (243,770) | (243,770) |
54 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Interest rate swaps (continued) | ||||||||||
Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | 85,600,000 | SEK | 3 month STIBOR | Fixed 1.110% | Annual | Quarterly | Dec 2027 | — | $(244,581) | $(244,581) |
Centrally cleared | 1,813,100,000 | JPY | 6 month LIBOR | Fixed 0.401% | Semi-Annual | Semi-Annual | Aug 2029 | — | (146,732) | (146,732) |
Centrally cleared | 3,626,200,000 | JPY | 6 month LIBOR | Fixed 0.404% | Semi-Annual | Semi-Annual | Aug 2029 | — | (286,426) | (286,426) |
Centrally cleared | 3,626,200,000 | JPY | 6 month LIBOR | Fixed 0.387% | Semi-Annual | Semi-Annual | Aug 2029 | — | (341,631) | (341,631) |
Centrally cleared | 5,439,400,000 | JPY | 6 month LIBOR | Fixed 0.387% | Semi-Annual | Semi-Annual | Aug 2029 | — | (513,846) | (513,846) |
Centrally cleared | 7,492,700,000 | JPY | 6 month LIBOR | Fixed 0.390% | Semi-Annual | Semi-Annual | Aug 2029 | — | (694,377) | (694,377) |
Centrally cleared | 7,252,400,000 | JPY | 6 month LIBOR | Fixed 0.393% | Semi-Annual | Semi-Annual | Aug 2029 | — | (652,337) | (652,337) |
Centrally cleared | 1,813,100,000 | JPY | 6 month LIBOR | Fixed 0.384% | Semi-Annual | Semi-Annual | Aug 2029 | — | (178,242) | (178,242) |
Centrally cleared | 1,813,100,000 | JPY | 6 month LIBOR | Fixed 0.380% | Semi-Annual | Semi-Annual | Aug 2029 | — | (185,181) | (185,181) |
Centrally cleared | 1,813,100,000 | JPY | 6 month LIBOR | Fixed 0.335% | Semi-Annual | Semi-Annual | Aug 2029 | — | (259,283) | (259,283) |
Centrally cleared | 5,439,300,000 | JPY | 6 month LIBOR | Fixed 0.370% | Semi-Annual | Semi-Annual | Aug 2029 | — | (604,945) | (604,945) |
Centrally cleared | 7,252,500,000 | JPY | 6 month LIBOR | Fixed 0.370% | Semi-Annual | Semi-Annual | Sep 2029 | — | (813,839) | (813,839) |
Centrally cleared | 3,626,200,000 | JPY | 6 month LIBOR | Fixed 0.370% | Semi-Annual | Semi-Annual | Sep 2029 | — | (408,013) | (408,013) |
Centrally cleared | 3,626,200,000 | JPY | 6 month LIBOR | Fixed 0.353% | Semi-Annual | Semi-Annual | Sep 2029 | — | (466,497) | (466,497) |
Centrally cleared | 3,866,500,000 | JPY | 6 month LIBOR | Fixed 0.357% | Semi-Annual | Semi-Annual | Sep 2029 | — | (482,447) | (482,447) |
Centrally cleared | 5,421,700,000 | JPY | 6 month LIBOR | Fixed 0.442% | Semi-Annual | Semi-Annual | Oct 2029 | — | (303,371) | (303,371) |
Centrally cleared | 5,421,700,000 | JPY | 6 month LIBOR | Fixed 0.440% | Semi-Annual | Semi-Annual | Oct 2029 | — | (315,037) | (315,037) |
Centrally cleared | 5,421,700,000 | JPY | 6 month LIBOR | Fixed 0.429% | Semi-Annual | Semi-Annual | Oct 2029 | — | (370,346) | (370,346) |
Centrally cleared | 3,614,400,000 | JPY | 6 month LIBOR | Fixed 0.434% | Semi-Annual | Semi-Annual | Oct 2029 | — | (231,296) | (231,296) |
Centrally cleared | 3,614,500,000 | JPY | 6 month LIBOR | Fixed 0.433% | Semi-Annual | Semi-Annual | Oct 2029 | — | (235,421) | (235,421) |
Centrally cleared | 1,606,000,000 | JPY | 6 month LIBOR | Fixed 0.434% | Semi-Annual | Semi-Annual | Oct 2029 | — | (104,428) | (104,428) |
Centrally cleared | 43,700,000 | USD | Fixed 2.338% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2037 | — | 3,312,144 | 3,312,144 |
Centrally cleared | 24,000,000 | USD | 3 month LIBOR | Fixed 2.338% | Semi-Annual | Quarterly | Jun 2037 | $(860,193) | (958,834) | (1,819,027) |
Centrally cleared | 4,600,000 | USD | 3 month LIBOR | Fixed 2.338% | Semi-Annual | Quarterly | Jun 2037 | (124,922) | (223,895) | (348,817) |
Centrally cleared | 21,850,000 | USD | Fixed 2.345% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2037 | — | 1,632,491 | 1,632,491 |
Centrally cleared | 21,850,000 | USD | Fixed 2.358% | 3 month LIBOR | Semi-Annual | Quarterly | Jun 2037 | — | 1,588,472 | 1,588,472 |
Centrally cleared | 19,000,000 | USD | 3 month LIBOR | Fixed 2.345% | Semi-Annual | Quarterly | Jun 2037 | (450,478) | (969,079) | (1,419,557) |
Centrally cleared | 926,800,000 | JPY | Fixed 0.815% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 131,410 | 131,410 |
Centrally cleared | 1,853,500,000 | JPY | Fixed 0.820% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 248,057 | 248,057 |
Centrally cleared | 1,853,400,000 | JPY | Fixed 0.802% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 307,002 | 307,002 |
Centrally cleared | 2,780,200,000 | JPY | Fixed 0.801% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 466,484 | 466,484 |
Centrally cleared | 3,829,200,000 | JPY | Fixed 0.809% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 595,731 | 595,731 |
Centrally cleared | 3,706,900,000 | JPY | Fixed 0.806% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 595,206 | 595,206 |
Centrally cleared | 926,700,000 | JPY | Fixed 0.804% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 152,211 | 152,211 |
Centrally cleared | 926,700,000 | JPY | Fixed 0.763% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 219,031 | 219,031 |
Centrally cleared | 926,700,000 | JPY | Fixed 0.810% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 142,573 | 142,573 |
Centrally cleared | 2,780,200,000 | JPY | Fixed 0.803% | 6 month LIBOR | Semi-Annual | Semi-Annual | Aug 2039 | — | 464,337 | 464,337 |
Centrally cleared | 3,707,000,000 | JPY | Fixed 0.801% | 6 month LIBOR | Semi-Annual | Semi-Annual | Sep 2039 | — | 633,925 | 633,925 |
Centrally cleared | 1,853,500,000 | JPY | Fixed 0.802% | 6 month LIBOR | Semi-Annual | Semi-Annual | Sep 2039 | — | 315,404 | 315,404 |
Centrally cleared | 1,853,400,000 | JPY | Fixed 0.785% | 6 month LIBOR | Semi-Annual | Semi-Annual | Sep 2039 | — | 370,612 | 370,612 |
Centrally cleared | 1,975,800,000 | JPY | Fixed 0.789% | 6 month LIBOR | Semi-Annual | Semi-Annual | Sep 2039 | — | 381,854 | 381,854 |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 55 |
Interest rate swaps (continued) | ||||||||||
Counterparty (OTC)/ Centrally cleared | Notional amount | Currency | Payments made | Payments received | Fixed payment frequency | Floating payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Centrally cleared | 2,764,900,000 | JPY | Fixed 0.872% | 6 month LIBOR | Semi-Annual | Semi-Annual | Oct 2039 | — | $168,612 | $168,612 |
Centrally cleared | 2,764,800,000 | JPY | Fixed 0.869% | 6 month LIBOR | Semi-Annual | Semi-Annual | Oct 2039 | — | 183,740 | 183,740 |
Centrally cleared | 2,764,800,000 | JPY | Fixed 0.855% | 6 month LIBOR | Semi-Annual | Semi-Annual | Oct 2039 | — | 250,129 | 250,129 |
Centrally cleared | 1,843,300,000 | JPY | Fixed 0.861% | 6 month LIBOR | Semi-Annual | Semi-Annual | Oct 2039 | — | 148,253 | 148,253 |
Centrally cleared | 1,843,200,000 | JPY | Fixed 0.863% | 6 month LIBOR | Semi-Annual | Semi-Annual | Oct 2039 | — | 141,991 | 141,991 |
Centrally cleared | 819,000,000 | JPY | Fixed 0.863% | 6 month LIBOR | Semi-Annual | Semi-Annual | Oct 2039 | — | 64,242 | 64,242 |
Centrally cleared | 31,500,000 | USD | Fixed 2.166% | 3 month LIBOR | Semi-Annual | Quarterly | Mar 2046 | — | 4,011,738 | 4,011,738 |
Centrally cleared | 18,500,000 | USD | 3 month LIBOR | Fixed 2.166% | Semi-Annual | Quarterly | Mar 2046 | $(1,423,386) | (932,714) | (2,356,100) |
Centrally cleared | 31,000,000 | USD | Fixed 2.808% | 3 month LIBOR | Semi-Annual | Quarterly | Mar 2047 | — | (190,111) | (190,111) |
Centrally cleared | 11,000,000 | USD | 3 month LIBOR | Fixed 2.808% | Semi-Annual | Quarterly | Mar 2047 | 646,062 | (578,603) | 67,459 |
$(1,728,059) | $(9,606,518) | $(11,334,577) | ||||||||
$(1,728,059) | $(9,547,398) | $(11,275,457) |
Total return swaps | ||||||||||
Pay/receive total return* | Reference entity | Floating rate | Payment frequency | Currency | Notional amount/ contract amount | Maturity date | Counterparty (OTC) | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 3,679,037 | Apr 2018 | Goldman Sachs | — | $(82,508) | $(82,508) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 2,742,721 | Apr 2018 | Goldman Sachs | — | (61,509) | (61,509) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 2,249,442 | Apr 2018 | Goldman Sachs | — | (50,447) | (50,447) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 9,744,539 | Apr 2018 | Goldman Sachs | — | (218,535) | (218,535) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 669,124 | Apr 2018 | Goldman Sachs | — | (15,006) | (15,006) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 3,873,152 | Apr 2018 | Goldman Sachs | — | (86,861) | (86,861) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.05% | Monthly | USD | 5,460,322 | Apr 2018 | Goldman Sachs | — | (122,456) | (122,456) |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.30% | Monthly | USD | 4,042,609 | Sep 2018 | JPMorgan Chase Bank | — | 113,040 | 113,040 |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.30% | Monthly | USD | 8,086,279 | Oct 2018 | JPMorgan Chase Bank | — | 238,202 | 238,202 |
Pay | Samsung Electronics Co., Ltd. | 1 Month USD LIBOR + 0.30% | Monthly | USD | 3,832,286 | Oct 2018 | JPMorgan Chase Bank | — | (93,684) | (93,684) |
Pay | Ibovespa Brasil Index | 1 Month USD LIBOR + 0.35% | Quarterly | USD | 5,819,801 | Dec 2018 | Morgan Stanley & Company, Inc. | — | (1,009,416) | (1,009,416) |
Pay | Ibovespa Brasil Index | 1 Month USD LIBOR + 0.35% | Quarterly | USD | 37,871,235 | Dec 2018 | Morgan Stanley & Company, Inc. | — | (7,011,410) | (7,011,410) |
Pay | Ibovespa Brasil Index | 1 Month USD LIBOR + 0.35% | Quarterly | USD | 36,752,160 | Dec 2018 | Morgan Stanley & Company, Inc. | — | (8,134,984) | (8,134,984) |
— | $(16,535,574) | $(16,535,574) |
56 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Variance swaps | |||||||||||
Counterparty (OTC) | Reference entity | Currency | Notional amount | USD notional amount | Pay/ receive volatility | Volatility strike rate | Payment frequency | Maturity date | Unamortized upfront payment paid (received) | Unrealized appreciation (depreciation) | Value |
BNP Paribas Securities Corp. | FTSE 100 Index | GBP | 226,260 | $ 293,254 | Pay | 22.450% | At maturity | Dec 2018 | — | $ 2,469,935 | $ 2,469,935 |
BNP Paribas Securities Corp. | FTSE 100 Index | GBP | 250,000 | 312,024 | Pay | 20.150% | At maturity | Dec 2018 | — | 2,085,417 | 2,085,417 |
BNP Paribas Securities Corp. | Hang Seng Index | HKD | 2,278,000 | 293,674 | Receive | 31.400% | At maturity | Dec 2018 | — | (2,603,232) | (2,603,232) |
BNP Paribas Securities Corp. | Hang Seng Index | HKD | 2,430,000 | 313,239 | Receive | 29.300% | At maturity | Dec 2018 | — | (2,117,698) | (2,117,698) |
JPMorgan Chase Bank | FTSE 100 Index | GBP | 190,000 | 237,405 | Pay | 22.550% | At maturity | Dec 2018 | — | 2,081,428 | 2,081,428 |
JPMorgan Chase Bank | FTSE 100 Index | GBP | 47,300 | 59,180 | Pay | 19.870% | At maturity | Dec 2018 | — | 380,173 | 380,173 |
JPMorgan Chase Bank | FTSE 100 Index | GBP | 46,200 | 57,882 | Pay | 19.680% | At maturity | Dec 2018 | — | 361,867 | 361,867 |
JPMorgan Chase Bank | Hang Seng Index | HKD | 1,846,500 | 238,075 | Receive | 31.550% | At maturity | Dec 2018 | — | (2,093,532) | (2,093,532) |
JPMorgan Chase Bank | Hang Seng Index | HKD | 455,000 | 58,644 | Receive | 29.260% | At maturity | Dec 2018 | — | (394,234) | (394,234) |
JPMorgan Chase Bank | Hang Seng Index | HKD | 447,000 | 57,606 | Receive | 29.290% | At maturity | Dec 2018 | — | (388,293) | (388,293) |
Societe Generale Paris | FTSE 100 Index | GBP | 300,000 | 398,878 | Pay | 22.750% | At maturity | Dec 2018 | — | 3,349,657 | 3,349,657 |
Societe Generale Paris | FTSE 100 Index | GBP | 185,000 | 225,458 | Pay | 21.250% | At maturity | Dec 2018 | — | 1,759,827 | 1,759,827 |
Societe Generale Paris | FTSE 100 Index | GBP | 160,000 | 202,537 | Pay | 20.150% | At maturity | Dec 2018 | — | 1,336,665 | 1,336,665 |
Societe Generale Paris | Hang Seng Index | HKD | 3,088,550 | 398,245 | Receive | 32.250% | At maturity | Dec 2018 | — | (3,717,025) | (3,717,025) |
Societe Generale Paris | Hang Seng Index | HKD | 1,750,000 | 225,672 | Receive | 30.350% | At maturity | Dec 2018 | — | (1,733,693) | (1,733,693) |
Societe Generale Paris | Hang Seng Index | HKD | 1,561,040 | 201,179 | Receive | 29.250% | At maturity | Dec 2018 | — | (1,358,635) | (1,358,635) |
$3,572,952 | — | $ (581,373) | $ (581,373) |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CHF | Swiss Franc |
CLP | Chilean Peso |
CZK | Czech Republic Koruna |
DKK | Danish Krone |
EUR | Euro |
SEE NOTES TO FINANCIAL STATEMENTS | SEMIANNUAL REPORT | JOHN HANCOCK GLOBAL ABSOLUTE RETURN STRATEGIES FUND | 57 |
GBP | Pound Sterling |
HKD | Hong Kong Dollar |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
JPY | Japanese Yen |
KRW | Korean Won |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
NOK | Norwegian Krone |
RON | Romanian New Leu |
RUB | Russian Ruble |
SEK | Swedish Krona |
SGD | Singapore Dollar |
TWD | New Taiwan Dollar |
USD | U.S. Dollar |
Derivatives Abbreviations | |
BBSW | Bank Bill Swap Rate |
CDOR | Canadian Dollar Offered Rate |
CLICP | Sinacofi Chile Interbank Rate Average |
LIBOR | London Interbank Offered Rate |
PRIBOR | Prague Interbank Offered Rate |
STIBOR | Stockholm Interbank Offered Rate |
58 | JOHN HANCOCK Global ABSOLUTE RETURN STRATEGIES FUND | SEMIANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Financial statements
STATEMENT OF ASSETS AND LIABILITIES 1-31-18 (unaudited)
Assets | |||||||||||||||||||||||||||||||||
Investments, at value (Cost $4,333,492,716) | $4,757,448,483 | ||||||||||||||||||||||||||||||||
Receivable for futures variation margin | 12,366,172 | ||||||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 38,373,372 | ||||||||||||||||||||||||||||||||
Receivable for centrally cleared swaps | 1,034,806 | ||||||||||||||||||||||||||||||||
Swap contracts, at value | 14,235,331 | ||||||||||||||||||||||||||||||||
Foreign currency, at value (Cost $1,640,134) | 1,640,669 | ||||||||||||||||||||||||||||||||
Cash held at broker for futures contracts | 153,027,698 | ||||||||||||||||||||||||||||||||
Cash segregated at custodian for OTC derivative contracts | 13,334,448 | ||||||||||||||||||||||||||||||||
Receivable for investments sold | 52,026,549 | ||||||||||||||||||||||||||||||||
Receivable for fund shares sold | 9,589,415 | ||||||||||||||||||||||||||||||||
Dividends and interest receivable | 21,555,561 | ||||||||||||||||||||||||||||||||
Other receivables and prepaid expenses | 275,891 | ||||||||||||||||||||||||||||||||
Total assets | 5,074,908,395 | ||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | 136,377,534 | ||||||||||||||||||||||||||||||||
Written options, at value (Premium received $16,756,422) | 12,848,482 | ||||||||||||||||||||||||||||||||
Swap contracts, at value | 31,293,158 | ||||||||||||||||||||||||||||||||
Payable for investments purchased | 77,998,577 | ||||||||||||||||||||||||||||||||
Payable for fund shares repurchased | 5,740,929 | ||||||||||||||||||||||||||||||||
Payable to affiliates | |||||||||||||||||||||||||||||||||
Accounting and legal services fees | 192,622 | ||||||||||||||||||||||||||||||||
Transfer agent fees | 334,783 | ||||||||||||||||||||||||||||||||
Distribution and service fees | 411 | ||||||||||||||||||||||||||||||||
Trustees' fees | 13,035 | ||||||||||||||||||||||||||||||||
Other liabilities and accrued expenses | 746,655 | ||||||||||||||||||||||||||||||||
Total liabilities | 265,546,186 | ||||||||||||||||||||||||||||||||
Net assets | $4,809,362,209 | ||||||||||||||||||||||||||||||||
Net assets consist of | |||||||||||||||||||||||||||||||||
Paid-in capital | $5,176,887,468 | ||||||||||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | (124,017,347 | ) | |||||||||||||||||||||||||||||||
Accumulated net realized gain (loss) on investments, futures contracts, forward foreign currency contracts, options written, foreign currency transactions and swap contracts | (559,711,005 | ) | |||||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) on investments, futures contracts, forward foreign currency contracts, options written, translation of assets and liabilities in foreign currencies and swap contracts | 316,203,093 | ||||||||||||||||||||||||||||||||
Net assets | $4,809,362,209 | ||||||||||||||||||||||||||||||||
STATEMENT OF ASSETS AND LIABILITIES (continued)
Net asset value per share | |||||||||||||||||||||||||||||||||
Based on net asset value and shares outstanding - The fund has an unlimited number of shares authorized with no par value | |||||||||||||||||||||||||||||||||
Class A ($145,041,311 ÷ 13,701,081 shares)1 | $10.59 | ||||||||||||||||||||||||||||||||
Class C ($126,602,261 ÷ 12,124,819 shares)1 | $10.44 | ||||||||||||||||||||||||||||||||
Class I ($3,070,712,992 ÷ 287,761,966 shares) | $10.67 | ||||||||||||||||||||||||||||||||
Class R2 ($1,986,317 ÷ 188,258 shares) | $10.55 | ||||||||||||||||||||||||||||||||
Class R6 ($615,485,510 ÷ 57,570,684 shares) | $10.69 | ||||||||||||||||||||||||||||||||
Class NAV ($849,533,818 ÷ 79,543,067 shares) | $10.68 | ||||||||||||||||||||||||||||||||
Maximum offering price per share | |||||||||||||||||||||||||||||||||
Class A (net assets value per share ÷ 95%)2 | $11.15 |
1 | Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge. | ||||||||||||||||
2 | On single retail sales of less than $50,000. On sales of $50,000 or more and on group sales the offering price is reduced. |
STATEMENT OF OPERATIONS For the six months ended 1-31-18 (unaudited)
Investment income | ||||||||||||||||||||||||
Interest | $39,812,248 | |||||||||||||||||||||||
Dividends | 20,854,800 | |||||||||||||||||||||||
Less foreign taxes withheld | (961,843 | ) | ||||||||||||||||||||||
Total investment income | 59,705,205 | |||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Investment management fees | 30,129,368 | |||||||||||||||||||||||
Distribution and service fees | 977,332 | |||||||||||||||||||||||
Accounting and legal services fees | 401,824 | |||||||||||||||||||||||
Transfer agent fees | 1,992,115 | |||||||||||||||||||||||
Trustees' fees | 34,621 | |||||||||||||||||||||||
State registration fees | 56,106 | |||||||||||||||||||||||
Printing and postage | 129,190 | |||||||||||||||||||||||
Professional fees | 142,296 | |||||||||||||||||||||||
Custodian fees | 691,050 | |||||||||||||||||||||||
Other | 89,776 | |||||||||||||||||||||||
Total expenses | 34,643,678 | |||||||||||||||||||||||
Less expense reductions | (242,869 | ) | ||||||||||||||||||||||
Net expenses | 34,400,809 | |||||||||||||||||||||||
Net investment income | 25,304,396 | |||||||||||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||||||
Net realized gain (loss) on | ||||||||||||||||||||||||
Investments and foreign currency transactions | 213,226,466 | |||||||||||||||||||||||
Futures contracts | (29,165,970 | ) | ||||||||||||||||||||||
Forward foreign currency contracts | (106,361,852 | ) | ||||||||||||||||||||||
Written options | 8,162,103 | |||||||||||||||||||||||
Swap contracts | (49,623 | ) | ||||||||||||||||||||||
85,811,124 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) of | ||||||||||||||||||||||||
Investments and translation of assets and liabilities in foreign currencies | 74,996,339 | |||||||||||||||||||||||
Futures contracts | 6,776,616 | |||||||||||||||||||||||
Forward foreign currency contracts | (23,863,818 | ) | ||||||||||||||||||||||
Written options | 1,366,055 | |||||||||||||||||||||||
Swap contracts | (27,781,443 | ) | ||||||||||||||||||||||
31,493,749 | ||||||||||||||||||||||||
Net realized and unrealized gain | 117,304,873 | |||||||||||||||||||||||
Increase in net assets from operations | $142,609,269 |
STATEMENTS OF CHANGES IN NET ASSETS
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Increase (decrease) in net assets | ||||||||||||||||||||||||||
From operations | ||||||||||||||||||||||||||
Net investment income | $25,304,396 | $63,729,834 | ||||||||||||||||||||||||
Net realized gain (loss) | 85,811,124 | (315,368,090 | ) | |||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) | 31,493,749 | 490,988,914 | ||||||||||||||||||||||||
Increase in net assets resulting from operations | 142,609,269 | 239,350,658 | ||||||||||||||||||||||||
From fund share transactions | (801,107,340 | ) | (3,204,743,026 | ) | ||||||||||||||||||||||
Total decrease | (658,498,071 | ) | (2,965,392,368 | ) | ||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||
Beginning of period | 5,467,860,280 | 8,433,252,648 | ||||||||||||||||||||||||
End of period | $4,809,362,209 | $5,467,860,280 | ||||||||||||||||||||||||
Accumulated distributions in excess of net investment income | ($124,017,347 | ) | ($149,321,743 | ) |
Financial highlights
Class A Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.30 | $9.94 | $11.27 | $11.25 | $10.84 | $10.59 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.04 | 0.06 | 0.04 | 0.03 | 0.03 | 0.02 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.25 | 0.30 | (0.69 | ) | 0.53 | 0.50 | 0.33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.29 | 0.36 | (0.65 | ) | 0.56 | 0.53 | �� | 0.35 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | (0.68 | ) | (0.54 | ) | (0.12 | ) | (0.03 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | — | — | (0.68 | ) | (0.54 | ) | (0.12 | ) | (0.10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.59 | $10.30 | $9.94 | $11.27 | $11.25 | $10.84 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3,4 | 2.82 | 5 | 3.62 | (6.00 | ) | 5.15 | 4.94 | 3.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $145 | $194 | $1,047 | $1,080 | $971 | $1,161 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.65 | 6 | 1.65 | 1.64 | 1.67 | 1.72 | 1.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.64 | 6 | 1.64 | 1.63 | 1.66 | 1.71 | 1.80 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 0.71 | 6 | 0.57 | 0.34 | 0.23 | 0.27 | 0.18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 24 | 59 | 80 | 80 | 56 | 106 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class C Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.19 | $9.91 | $11.23 | $11.21 | $10.80 | $10.61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)3 | — | 4 | — | 4 | (0.04 | ) | (0.05 | ) | (0.05 | ) | (0.06 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.25 | 0.28 | (0.67 | ) | 0.53 | 0.51 | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.25 | 0.28 | (0.71 | ) | 0.48 | 0.46 | 0.26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | (0.61 | ) | (0.46 | ) | (0.05 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | — | — | (0.61 | ) | (0.46 | ) | (0.05 | ) | (0.07 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.44 | $10.19 | $9.91 | $11.23 | $11.21 | $10.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)5,6 | 2.45 | 7 | 2.83 | (6.61 | ) | 4.43 | 4.24 | 2.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $127 | $162 | $309 | $293 | $203 | $146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 2.35 | 8 | 2.35 | 2.34 | 2.37 | 2.42 | 2.53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 2.34 | 8 | 2.34 | 2.33 | 2.36 | 2.41 | 2.52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | — | 8,9 | (0.05 | ) | (0.35 | ) | (0.45 | ) | (0.43 | ) | (0.55 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 24 | 59 | 80 | 80 | 56 | 106 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | The inception date for Class C shares is 8-1-12. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Does not reflect the effect of sales charges, if any. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | Annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | Less than 0.005%. |
Class I Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.36 | $9.97 | $11.30 | $11.29 | $10.87 | $10.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.05 | 0.10 | 0.07 | 0.06 | 0.07 | 0.06 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.26 | 0.29 | (0.68 | ) | 0.53 | 0.51 | 0.33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.31 | 0.39 | (0.61 | ) | 0.59 | 0.58 | 0.39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | (0.72 | ) | (0.58 | ) | (0.16 | ) | (0.07 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | — | — | (0.72 | ) | (0.58 | ) | (0.16 | ) | (0.14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.67 | $10.36 | $9.97 | $11.30 | $11.29 | $10.87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 2.99 | 4 | 3.91 | (5.67 | ) | 5.38 | 5.37 | 3.65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $3,071 | $3,481 | $5,316 | $5,093 | $3,495 | $1,740 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.35 | 5 | 1.33 | 1.32 | 1.36 | 1.39 | 1.43 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.34 | 5 | 1.33 | 1.31 | 1.34 | 1.38 | 1.42 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.00 | 5 | 1.01 | 0.67 | 0.56 | 0.63 | 0.58 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 24 | 59 | 80 | 80 | 56 | 106 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Class R2 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.27 | $9.92 | $11.25 | $11.24 | $10.83 | $10.58 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss)2 | 0.03 | 0.08 | 0.01 | (0.01 | ) | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.25 | 0.27 | (0.66 | ) | 0.53 | 0.50 | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.28 | 0.35 | (0.65 | ) | 0.52 | 0.50 | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | (0.68 | ) | (0.51 | ) | (0.09 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | — | — | (0.68 | ) | (0.51 | ) | (0.09 | ) | (0.07 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.55 | $10.27 | $9.92 | $11.25 | $11.24 | $10.83 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)4 | 2.73 | 5 | 3.53 | (6.08 | ) | 4.75 | 4.67 | 3.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $2 | $2 | $3 | $5 | $1 | $1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.74 | 6 | 1.72 | 1.75 | 1.99 | 2.85 | 8.88 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.73 | 6 | 1.71 | 1.74 | 1.97 | 2.00 | 2.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.61 | 6 | 0.78 | 0.09 | (0.06 | ) | 0.02 | (0.01 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 24 | 59 | 80 | 80 | 56 | 106 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Less than $0.005 per share. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Annualized. |
Class R6 Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.38 | $9.97 | $11.30 | $11.29 | $10.86 | $10.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.06 | 0.11 | 0.09 | 0.09 | 0.09 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.25 | 0.30 | (0.69 | ) | 0.51 | 0.50 | 0.34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.31 | 0.41 | (0.60 | ) | 0.60 | 0.59 | 0.39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | (0.73 | ) | (0.59 | ) | (0.16 | ) | (0.06 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | — | — | (0.73 | ) | (0.59 | ) | (0.16 | ) | (0.13 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.69 | $10.38 | $9.97 | $11.30 | $11.29 | $10.86 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 2.99 | 4 | 4.11 | (5.55 | ) | 5.51 | 5.44 | 3.66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $615 | $693 | $639 | $557 | $196 | $39 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.25 | 5 | 1.24 | 1.23 | 1.26 | 1.33 | 1.51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.24 | 5 | 1.22 | 1.20 | 1.23 | 1.28 | 1.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.10 | 5 | 1.08 | 0.81 | 0.77 | 0.78 | 0.51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 24 | 59 | 80 | 80 | 56 | 106 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Class NAV Shares Period ended | 1-31-18 | 1 | 7-31-17 | 7-31-16 | 7-31-15 | 7-31-14 | 7-31-13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share operating performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | $10.37 | $9.96 | $11.29 | $11.28 | $10.86 | $10.61 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income2 | 0.06 | 0.11 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.25 | 0.30 | (0.68 | ) | 0.52 | 0.51 | 0.32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total from investment operations | 0.31 | 0.41 | (0.60 | ) | 0.60 | 0.59 | 0.40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net investment income | — | — | (0.73 | ) | (0.59 | ) | (0.17 | ) | (0.08 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
From net realized gain | — | — | — | — | — | (0.07 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total distributions | — | — | (0.73 | ) | (0.59 | ) | (0.17 | ) | (0.15 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, end of period | $10.68 | $10.37 | $9.96 | �� | $11.29 | $11.28 | $10.86 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total return (%)3 | 2.99 | 4 | 4.12 | (5.56 | ) | 5.51 | 5.50 | 3.78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios and supplemental data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net assets, end of period (in millions) | $850 | $936 | $1,119 | $1,260 | $835 | $673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ratios (as a percentage of average net assets): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses before reductions | 1.24 | 5 | 1.22 | 1.21 | 1.24 | 1.26 | 1.29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses including reductions | 1.23 | 5 | 1.22 | 1.20 | 1.23 | 1.26 | 1.29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | 1.11 | 5 | 1.12 | 0.75 | 0.68 | 0.72 | 0.73 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio turnover (%) | 24 | 59 | 80 | 80 | 56 | 106 |
1 | Six months ended 1-31-18. Unaudited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Based on average daily shares outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | Not annualized. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Annualized. |
Note 1 — Organization
John Hancock Global Absolute Return Strategies Fund (the fund) is a series of John Hancock Funds II (the Trust), an open-end management investment company organized as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act). The investment objective of the fund is to seek long-term total return.
The fund may offer multiple classes of shares. The shares currently offered are detailed in the Statement of assets and liabilities. Class A and Class C shares are offered to all investors.Class I shares are offered to institutions and certain investors. Class R2 shares are available only to certain retirement plans. Class R6 shares are available only to certain retirement plans, institutions and other investors. Class NAV shares are offered to John Hancock affiliated funds of funds and certain 529 plans. Shareholders of each class have exclusive voting rights to matters that affect that class. The distribution and service fees, if any, and transfer agent fees for each class may differ.
Note 2 — Significant accounting policies
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (US GAAP), which require management to make certain estimates and assumptions as of the date of the financial statements. Actual results could differ from those estimates and those differences could be significant. The fund qualifies as an investment company under Topic 946 of Accounting Standards Codification of US GAAP.
Events or transactions occurring after the end of the fiscal period through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the fund:
Security valuation. Investments are stated at value as of the scheduled close of regular trading on the New York Stock Exchange (NYSE), normally at 4:00 p.m., Eastern Time. In case of emergency or other disruption resulting in the NYSE not opening for trading or the NYSE closing at a time other than the regularly scheduled close, the net asset value (NAV) may be determined as of the regularly scheduled close of the NYSE pursuant to the fund's Valuation Policies and Procedures.
In order to value the securities, the fund uses the following valuation techniques: Equity securities held by the fund are typically valued at the last sale price or official closing price on the exchange or principal market where the security trades. In the event there were no sales during the day or closing prices are not available, the securities are valued using the last available bid price. Investments by the fund in open-end mutual funds are valued at their respective NAVs each business day. Debt obligations are valued based on the evaluated prices provided by an independent pricing vendor or from broker-dealers. Independent pricing vendors utilize matrix pricing which takes 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 supplied prices. Options listed on an exchange are valued at the mean of the most recent bid and ask prices from the exchange where the option trades. Swaps and unlisted options are valued using evaluated prices obtained from an independent pricing vendor. Futures contracts are valued at settlement prices, which are the official closing prices published by the exchange on which they trade. Foreign index futures that trade in the electronic trading market subsequent to the close of regular trading and have sufficient liquidity will be valued at the last traded price in the electronic trading market as of 4:00 p.m. ET. Foreign securities and currencies, including forward foreign currency contracts, are valued in U.S. dollars based on foreign currency exchange rates supplied by an independent pricing vendor.
In certain instances, the Pricing Committee may determine to value equity securities using prices obtained from another exchange or market if trading on the exchange or market on which prices are typically obtained did not open for trading as scheduled, or if trading closed earlier than scheduled, and trading occurred as normal on another exchange or market.
Other portfolio securities and assets, for which reliable market quotations are not readily available, are valued at fair value as determined in good faith by the fund's Pricing Committee following procedures established by the Board of Trustees. The frequency with which these fair valuation procedures are used cannot be predicted and fair value of securities may differ significantly from the value that would have been used had a ready market for such securities existed. Trading in foreign securities may be completed before the scheduled daily close of trading on the NYSE. Significant events at the issuer or market level may affect the values of securities between the time when the valuation of the securities is generally determined and the close of the NYSE. If a significant event occurs, these securities may be fair valued, as determined in good faith by the fund's Pricing Committee, following procedures established by the Board of Trustees. The fund uses fair value adjustment
factors provided by an independent pricing vendor to value certain foreign securities in order to adjust for events that may occur between the close of foreign exchanges or markets and the close of the NYSE.
The fund uses a three-tier hierarchy to prioritize the pricing assumptions, referred to as inputs, used in valuation techniques to measure fair value. Level 1 includes securities valued using quoted prices in active markets for identical securities. Level 2 includes securities valued using other significant observable inputs. Observable inputs may include quoted prices for similar securities, interest rates, prepayment speeds and credit risk. Prices for securities valued using these inputs are received from independent pricing vendors and brokers and are based on an evaluation of the inputs described. Level 3 includes securities valued using significant unobservable inputs when market prices are not readily available or reliable, including the fund's own assumptions in determining the fair value of investments. Factors used in determining value may include market or issuer specific events or trends, changes in interest rates and credit quality. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Changes in valuation techniques and related inputs may result in transfers into or out of an assigned level within the disclosure hierarchy.
The following is a summary of the values by input classification of the fund's investments as of January 31, 2018, by major security category or type:
Total value at 1-31-18 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |||||||||||
Investments in securities: | ||||||||||||||
Assets | ||||||||||||||
Common stocks | $1,891,846,444 | $340,928,330 | $1,550,192,958 | $725,156 | ||||||||||
U.S. Government and Agency obligations | 550,073,974 | — | 550,073,974 | — | ||||||||||
Foreign government obligations | 355,014,413 | — | 355,014,413 | — | ||||||||||
Corporate bonds | 644,205,238 | — | 644,205,238 | — | ||||||||||
Purchased options | 165,759,027 | 149,839,468 | 15,919,559 | — | ||||||||||
Rights | 12,940 | — | 12,940 | — | ||||||||||
Short-term investments | 1,150,536,447 | 36,635,673 | 1,113,900,774 | — | ||||||||||
Total investments in securities | $4,757,448,483 | $527,403,471 | $4,229,319,856 | $725,156 | ||||||||||
Derivatives: | ||||||||||||||
Assets | ||||||||||||||
Futures | $50,652,141 | $40,618,526 | $10,033,615 | — | ||||||||||
Forward foreign currency contracts | 38,373,372 | — | 38,373,372 | — | ||||||||||
Swap contracts | 74,597,386 | — | 74,597,386 | — | ||||||||||
Liabilities | ||||||||||||||
Futures | (38,487,658 | ) | (38,487,658 | ) | — | — | ||||||||
Forward foreign currency contracts | (136,377,534 | ) | — | (136,377,534 | ) | — | ||||||||
Written options | (12,848,482 | ) | (2,265,585 | ) | (10,582,897 | ) | — | |||||||
Swap contracts | (102,989,790 | ) | — | (102,989,790 | ) | — |
Security transactions and related investment income. Investment security transactions are accounted for on a trade date plus one basis for daily NAV calculations. However, for financial reporting purposes, investment transactions are reported on trade date. Interest income is accrued as earned. Interest income includes coupon interest and amortization/accretion of premiums/discounts on debt securities. Debt obligations may be placed in a non-accrual status and related interest income may be reduced by stopping current accruals and writing off interest receivable when the collection of all or a portion of interest has become doubtful. Dividend income is recorded on the ex-date, except for dividends of foreign securities where the dividend may not be known until after the ex-date. In those cases, dividend income, net of withholding taxes, is recorded when the fund becomes aware of the dividends. Foreign taxes are provided for based on the fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds from litigation.
Inflation-indexed bonds. Inflation-indexed bonds are securities that generally have a lower coupon interest rate fixed at issuance but whose principal value is periodically adjusted based on a rate of inflation, such as the Consumer Price Index. Over the life of an inflation-indexed bond, interest is paid on the inflation adjusted principal value as described above. Increases in the principal amount of these securities are recorded as interest income. Decreases in the principal amount of these securities may reduce interest income to the extent of income previously recorded. If these decreases are in excess of income previously recorded, an adjustment to the cost of the security is made.
Real estate investment trusts. The fund may invest in real estate investment trusts (REITs). Distributions from REITs may be recorded as income and subsequently characterized by the REIT at the end of the fiscal year as a reduction of cost of investments and/or as a realized gain. As a result, the fund will estimate the components of distributions from these securities. Such estimates are revised when the actual components of the distributions are known.
Foreign investing. Assets, including investments and liabilities denominated in foreign currencies, are translated into U.S. dollar values each day at the prevailing exchange rate. Purchases and sales of securities, income and expenses are translated into U.S. dollars at the prevailing exchange rate on the date of the transaction. The effect of changes in foreign currency exchange rates on the value of securities is reflected as a component of the realized and unrealized gains (losses) on investments. Foreign investments are also subject to a decline in the value of a foreign currency versus the U.S. dollar, which reduces the dollar value of securities denominated in that currency.
Funds that invest internationally generally carry more risk than funds that invest strictly in U.S. securities. These risks are heightened for investments in emerging markets. Risks can result from differences in economic and political conditions, regulations, market practices (including higher transaction costs), accounting standards and other factors.
Foreign taxes. The fund may be subject to withholding tax on income and/or capital gains or repatriation taxes imposed by certain countries in which the fund invests. Taxes are accrued based upon investment income, realized gains or unrealized appreciation.
Line of credit. The fund may have the ability to borrow from banks for temporary or emergency purposes, including meeting redemption requests that otherwise might require the untimely sale of securities. Pursuant to the fund's custodian agreement, the custodian may loan money to the fund to make properly authorized payments. The fund is obligated to repay the custodian for any overdraft, including any related costs or expenses. The custodian may have a lien, security interest or security entitlement in any fund property that is not otherwise segregated or pledged, to the extent of any overdraft, and to the maximum extent permitted by law. Overdrafts at period end are presented under the caption Due to custodian in the Statement of assets and liabilities.
The fund and other affiliated funds have entered into a syndicated line of credit agreement with Citibank, N.A. as the administrative agent that enables them to participate in a $750 million unsecured committed line of credit. Excluding commitments designated for a certain fund and subject to the needs of all other affiliated funds, the fund can borrow up to an aggregate commitment amount of $500 million, subject to asset coverage and other limitations as specified in the agreement. A commitment fee payable at the end of each calendar quarter, based on the average daily unused portion of the line of credit, is charged to each participating fund based on a combination of fixed and asset based allocations and is reflected in Other expenses on the Statement of operations. For the six months ended January 31, 2018, the fund had no borrowings under the line of credit. Commitment fees for the six months ended January 31, 2018 were $6,112.
Expenses. Within the John Hancock group of funds complex, expenses that are directly attributable to an individual fund are allocated to such fund. Expenses that are not readily attributable to a specific fund are allocated among all funds in an equitable manner, taking into consideration, among other things, the nature and type of expense and the fund's relative net assets. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Class allocations. Income, common expenses and realized and unrealized gains (losses) are determined at the fund level and allocated daily to each class of shares based on the net assets of the class. Class-specific expenses, such as distribution and service fees, if any, and transfer agent fees, for all classes, are charged daily at the class level based on the net assets of each class and the specific expense rates applicable to each class.
Federal income taxes. The fund intends to continue to qualify as a regulated investment company by complying with the applicable provisions of the Internal Revenue Code and will not be subject to federal income tax on taxable income that is distributed to shareholders. Therefore, no federal income tax provision is required.
For federal income tax purposes, as of July 31, 2017, the fund has a short-term capital loss carryforward of $558,138,913 and a long-term capital loss carryforward of $78,865,063 available to offset future net realized capital gains. These carryforwards do not expire.
As of July 31, 2017, the fund had no uncertain tax positions that would require financial statement recognition, derecognition or disclosure. The fund's federal tax returns are subject to examination by the Internal Revenue Service for a period of three years.
Distribution of income and gains. Distributions to shareholders from net investment income and net realized gains, if any, are recorded on the ex-date. The fund generally declares and pays dividends and capital gain 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 in the same amount, except for the effect of class level expenses that may be applied differently to each class.
Such distributions, on a tax basis, are determined in conformity with income tax regulations, which may differ from US GAAP.
Capital accounts within the 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, if any, will reverse in a subsequent period. Book-tax differences are primarily attributable to foreign currency transactions, net operating losses, derivative transactions, amortization and accretion on debt securities, investments in passive foreign investment companies, wash sale loss deferrals and treasury inflation protected securities.
Note 3 — Derivative Instruments
The fund may invest in derivatives in order to meet its investment objective. Derivatives include a variety of different instruments that may be traded in the over-the-counter (OTC) market, on a regulated exchange or through a clearing facility. The risks in using derivatives vary depending upon the structure of the instruments, including the use of leverage, optionality, the liquidity or lack of liquidity of the contract, the creditworthiness of the counterparty or clearing organization and the volatility of the position. Some derivatives involve risks that are potentially greater than the risks associated with investing directly in the referenced securities or other referenced underlying instrument. Specifically, the fund is exposed to the risk that the counterparty to an OTC derivatives contract will be unable or unwilling to make timely settlement payments or otherwise honor its obligations. OTC derivatives transactions typically can only be closed out with the other party to the transaction.
Forward foreign currency contracts, certain options and certain swaps are typically traded through the OTC market. Certain forwards, options and swaps are regulated by the Commodity Futures Trading Commission. Derivative counterparty risk is managed through an ongoing evaluation of the creditworthiness of all potential counterparties and, if applicable, designated clearing organizations. The fund attempts to reduce its exposure to counterparty risk for derivatives traded in the OTC market, whenever possible, by entering into an International Swaps and Derivatives Association (ISDA) Master Agreement with each of its OTC counterparties. The ISDA gives each party to the agreement the right to terminate all transactions traded under the agreement if there is certain deterioration in the credit quality or contractual default of the other party, as defined in the ISDA. Upon an event of default or a termination of the ISDA, the non-defaulting party has the right to close out all transactions and to net amounts owed.
As defined by the ISDA, the fund may have collateral agreements with certain counterparties to mitigate counterparty risk on OTC derivatives. Subject to established minimum levels, collateral for OTC transactions is generally determined based on the net aggregate unrealized gain or loss on contracts with a particular counterparty. Collateral pledged to the fund is held in a segregated account by a third-party agent or held by the custodian bank for the benefit of the fund and can be in the form of cash or debt securities issued by the U.S. government or related agencies; collateral posted by the fund for OTC transactions is held in a segregated account at the fund's custodian and is noted in the accompanying Fund's investments, or if cash is posted, on the Statement of assets and liabilities. The fund's risk of loss due to counterparty risk is equal to the asset value of outstanding contracts offset by collateral received.
Futures, certain options and centrally-cleared swaps are traded or cleared on an exchange or central clearinghouse. Exchange-traded or centrally-cleared transactions generally present less counterparty risk to a fund than OTC transactions. The exchange or clearinghouse stands between the fund and the broker to the contract and therefore, credit risk is generally limited to the failure of the exchange or clearinghouse and the clearing member.
Cleared swap contracts are subject to clearinghouse rules, including initial and variation margin requirements, daily settlement of obligations and the clearinghouse guarantee of payments to the broker. There is, however, still counterparty risk due to the potential insolvency of the broker with respect to any margin held in the brokers' customer accounts. While clearing members are required to segregate customer assets from their own assets, in the event of insolvency, there may be a shortfall in the amount of margin held by the broker for its clients. Collateral or margin requirements for exchange-traded or centrally-cleared derivatives are set by the broker or applicable clearinghouse. Margin for exchange-traded and centrally-cleared transactions is detailed in the Statement of assets and liabilities as Cash held at broker for futures contracts and receivable for centrally-cleared swaps, respectively. Securities pledged by the fund for exchange-traded and centrally-cleared transactions, if any, are identified in the Fund of investments.
Futures. A futures contract is a contractual agreement to buy or sell a particular currency or financial instrument at a pre-determined price in the future. Risks related to the use of futures contracts include possible illiquidity of the futures markets, contract prices that can be highly volatile and imperfectly correlated to movements in the underlying financial instrument and potential losses in excess of the amounts recognized on the Statement of assets and liabilities. Use of long futures contracts subjects the fund to the risk of loss up to the notional value of the futures contracts. Use of short futures contracts subjects the fund to unlimited risk of loss.
Upon entering into a futures contract, the fund is required to deposit initial margin with the broker in the form of cash or securities. The amount of required margin is generally based on a percentage of the contract value; this amount is the initial margin for the trade. The margin deposit must then be maintained at the established level over the life of the contract. Futures margin receivable / payable is included on the Statement of assets and liabilities. Futures contracts are marked-to-market daily and an appropriate payable or receivable for the change in value (variation margin) and unrealized gain or loss is recorded by the fund. When the contract is closed, the fund records a realized gain or loss 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.
During the six months ended January 31, 2018, the fund used futures contracts to to manage against anticipated changes in securities markets and interest rates,gain exposure to certain securities markets and foreign bond markets,and maintain diversity of the fund. The fund held futures contracts with notional values up to $5.3 billion, as measured at each quarter end.
Forward foreign currency contracts. A forward foreign currency contract is an agreement between two parties to buy and sell specific currencies at a price that is set on the date of the contract. The forward contract calls for delivery of the currencies on a future date that is specified in the contract. Risks related to the use of forwards include the possible failure of counterparties to meet the terms of the forward agreement, the failure of the counterparties to timely post collateral if applicable, the risk that currency movements will not favor the fund thereby reducing the fund's total return, and the potential for losses in excess of the amounts recognized on the Statement of assets and liabilities.
The market value of a forward foreign currency contract fluctuates with changes in foreign currency exchange rates. Forward foreign currency contracts are marked-to-market daily and the change in value is recorded by the fund as an unrealized gain or loss. Realized gains or losses, equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed, are recorded upon delivery or receipt of the currency or settlement with the counterparty.
During the six months ended January 31, 2018, the fund used forward foreign currency contracts to manage against anticipated changes in currency exchange rates, gain exposure to foreign currencies and maintain diversity of the fund. The fund held forward foreign currency contracts with U.S. Dollar notional values ranging from $5.0 billion to $5.9 billion, as measured at each quarter end.
Options. There are two types of options, put options and call options. Options are traded either OTC or on an exchange. A call option gives the purchaser of the option the right to buy (and the seller the obligation to sell) the underlying instrument at the exercise price. A put option gives the purchaser of the option the right to sell (and the writer the obligation to buy) the underlying instrument at the exercise price. Writing puts and buying calls may increase the fund's exposure to changes in the value of the underlying instrument. Buying puts and writing calls may decrease the fund's exposure to such changes. Risks
related to the use of options include the loss of premiums, possible illiquidity of the options markets, trading restrictions imposed by an exchange and movements in underlying security values, and for written options, potential losses in excess of the amounts recognized on the Statement of assets and liabilities. In addition, OTC options are subject to the risks of all OTC derivatives contracts.
When the fund purchases an option, the premium paid by the fund is included in the portfolio of investments and subsequently "marked-to-market" to reflect current market value. If the purchased option expires, the fund realizes a loss equal to the cost of the option. If the fund exercises a call option, the cost of the securities acquired by exercising the call is increased by the premium paid to buy the call. If the fund exercises a put option, it realizes a gain or loss from the sale of the underlying security and the proceeds from such sale are decreased by the premium paid. Use the following disclosure only when fund has written/purchased options: If the fund enters into a closing sale transaction, the fund realizes a gain or loss, depending on whether proceeds from the closing sale are greater or less than the original cost. When the fund writes an option, the premium received is included as a liability and subsequently "marked-to-market" to reflect the current market value of the option written. Premiums received from writing options that expire unexercised are recorded as realized gains. Premiums received from writing options which are exercised or are closed are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium received reduces the cost basis of the securities purchased by the fund.
During the six months ended January 31, 2018, the fund used purchased options contracts to maintain diversity of the fund. The fund held purchased options contracts with market values ranging from $105.6 million to $165.8 million, as measured at each quarter end.
During the six months ended January 31, 2018, the fund wrote option contracts to manage against anticipated changes in securities markets and gain exposure to certain securities markets. The fund held written options contracts with market values ranging from $9.1 million to $12.8 million, as measured at each quarter end.
Swaps. Swap agreements are agreements between the fund and counterparty to exchange cash flows, assets, foreign currencies or market-linked returns at specified intervals. Swap agreements are privately negotiated in the OTC market (OTC swaps) or may be executed on a registered commodities exchange (centrally cleared swaps). Swaps are marked-to-market daily and the change in value is recorded as a component of unrealized appreciation/depreciation of swap contracts. The value of the swap will typically impose collateral posting obligations on the party that is considered out-of-the-money on the swap.
Upfront payments made/received by the fund are amortized/accreted for financial reporting purposes, with the unamortized/unaccreted portion included in the Statement of assets and liabilities. A termination payment by the counterparty or the fund is recorded as realized gain or loss, as well as the net periodic payments received or paid by the fund.
Entering into swap agreements involves, to varying degrees, elements of credit, market and documentation risk that may provide outcomes that are in excess of the amounts recognized on the Statement of assets and liabilities. Such risks involve the possibility that there will be no liquid market for the swap, or that a counterparty may default on its obligation or delay payment under the swap terms. The counterparty may disagree or contest the terms of the swap. In addition to interest rate risk, market risks may also impact the swap. The fund may also suffer losses if it is unable to terminate or assign outstanding swaps or reduce its exposure through offsetting transactions.
Interest rate swaps. Interest rate swaps represent an agreement between the fund and a counterparty to exchange cash flows based on the difference between two interest rates applied to a notional amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. The fund settles accrued net interest receivable or payable under the swap contracts at specified, future intervals.
During the six months ended January 31, 2018, the fund used interest rate swap contracts to manage duration of the fund,manage against anticipated interest rate changes, maintain diversity of the fund and gain exposure to treasuries markets. The fund held interest rate swaps with total USD notional amounts ranging from $6.8 billion to $10.2 billion, as measured at each quarter end.
Credit default swaps. 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 the premium and agreeing to contingent payments that are specified within the credit default agreement. The fund may enter into CDS in which it may act as either Buyer or Seller. By acting as the Seller, the fund may incur economic leverage since it would be obligated to pay the Buyer the notional amount of the contract in the event of a default. The amount of loss in such case could be significant, but would typically be reduced by any recovery value on the underlying credit.
Credit default swaps—Buyer
During the six months ended January 31, 2018, the fund used CDS as a Buyer of protection to manage against potential credit events. The fund held credit default swap contracts with total USD notional amounts ranging up to $53.2 million, as measured at each quarter end.
Credit default swaps—Seller
Implied credit spreads are utilized in determining the market value of CDS agreements in which the fund is the Seller at period end. 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 creditworthiness and an increased risk of default or other credit event occurring as defined under the terms of the agreement.
For CDS agreements where implied credit spreads are not reported or available, the average credit rating on the underlying index is shown. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity's creditworthiness and a greater likelihood of a credit event occurring. This is also represented by a decrease in the average credit rating of the underlying index. The maximum potential amount of future payments (undiscounted) that a fund as the Seller could be required to make under any CDS agreement equals the notional amount of the agreement.
During the six months ended January 31, 2018, the fund used CDS as a Seller of protection to take a long position in the exposure of the benchmark credit. The fund acted as Seller on credit default swap contracts with total USD notional amounts ranging from $26.6 million to $53.2 million, as measured at each quarter end.
Total Return Swaps. The fund may enter into total return swap contracts to obtain synthetic exposure to a specific reference asset or index without owning, taking physical custody of, or short selling the underlying assets. Total return swaps are commitments where one party pays a fixed or variable rate premium (the Buyer) in exchange for a market-linked return (the Seller). The Seller pays the total return of a specific reference asset or index and in return receives interest payments from the Buyer. To the extent the total return of the underlying asset or index exceeds or falls short of the offsetting interest rate obligation, the Buyer will receive or make a payment to the Seller. The fund may enter into total return swaps in which it may act as either the Buyer or the Seller. Total return swap contracts are subject to the risk associated with the investment in the underlying reference asset or index. The risk in the case of short total return swap contracts is unlimited based on the potential for unlimited increases in the market value of the underlying reference asset or index.
During the six months ended January 31, 2018, the fund used total return swaps to manage against anticipated changes in securities, gain exposure to certain securities markets, and to maintain diversity of the fund. The fund held total return swaps with total USD notional amounts ranging from $124.8 million to $427.8 million, as measured at each quarter end.
Variance Swaps. Variance swap agreements involve two parties agreeing to exchange cash flows based on the measured variance (or square of volatility) of a specified underlying asset. One party agrees to exchange a "fixed rate" or strike price payment for the "floating rate" or realized price variance on the underlying asset with respect to the notional amount. At inception, the strike price is generally chosen such that the fair value of the swap is zero. At the maturity date, a net cash flow is exchanged, where the payoff amount is equivalent to the difference between the realized price variance of the underlying asset and the strike price multiplied by the notional amount. As a receiver of the realized price variance, the fund would receive the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would owe the payoff amount when the price variance is less than the strike price. As a payer of the realized price variance the fund would owe the payoff amount when the realized price variance of the underlying asset is greater than the strike price and would receive the payoff amount when the variance is less than the strike price
During the six months ended January 31, 2018, the fund used variance swaps to maintain diversity of the fund and manage against volatility and anticipated changes in securities markets. The fund held variance swaps with total USD notional amounts ranging from $3.6 million to $9.4 million, as measured at each quarter end.
Fair value of derivative instruments by risk category
The table below summarizes the fair value of derivatives held by the fund at January 31, 2018 by risk category:
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value | |||||||||||||
Equity | Receivable/payable for futures | Futures† | $33,003,108 | ($23,521,525 | ) | ||||||||||||
Interest rate | Receivable/payable for futures | Futures† | 17,649,033 | (14,966,133 | ) | ||||||||||||
Foreign currency | Unrealized appreciation / depreciation on forward foreign currency contracts | Forward foreign currency contracts | 38,373,372 | (136,377,534 | ) | ||||||||||||
Equity | Investments, at value* | Purchased options | 165,759,027 | — | |||||||||||||
Equity | Written options, at value | Written options | — | (12,848,483 | ) | ||||||||||||
Equity | Swap contracts, at value | Variance swaps^ | 13,824,969 | (14,406,342 | ) | ||||||||||||
Equity | Swap contracts, at value | Total return swaps^ | 351,242 | (16,886,816 | ) | ||||||||||||
Interest rate | Swap contracts, at value | Interest rate swaps^ | 60,421,175 | (71,696,632 | ) | ||||||||||||
$329,381,926 | ($290,703,465 | ) | |||||||||||||||
† Reflects cumulative appreciation/depreciation on futures as disclosed in the Fund's investments. Only the period end variation margin is separately disclosed on the Statement of assets and liabilities. | |||||||||||||||||
* Purchased options are included in the Fund's investments. | |||||||||||||||||
^ Reflects cumulative value of swap contracts. Receivable/payable for centrally cleared swaps, which includes value and margin, and swap contracts at value, which represents OTC swaps, are shown separately on the Statement of assets and liabilities. |
For financial reporting purposes, the fund does not offset OTC derivative assets or liabilities that are subject to master netting arrangements, as defined by the ISDAs, in the Statement of assets and liabilities. In the event of default by the counterparty or a termination of the agreement, the ISDA allows an offset of amounts across the various transactions between the fund and the applicable counterparty. The table below reflects the fund's exposure to counterparties subject to an ISDA for OTC derivative transactions:
OTC Financial Instruments | Asset | Liability | ||||||
Forward foreign currency contracts | $38,373,372 | ($136,377,534 | ) | |||||
Purchase options | 15,919,559 | — | ||||||
Written options | — | (10,582,897 | ) | |||||
Interest rate swaps | 59,120 | — | ||||||
Total return swaps | 351,242 | (16,886,816 | ) | |||||
Variance swaps | 13,824,969 | (14,406,342 | ) | |||||
$68,528,262 | ($178,253,589 | ) |
Counterparty | Total market value of OTC derivatives | Collateral posted by counterparty | Collateral posted by fund | Net exposure | ||||||||||
Barclays | ($7,632,535 | ) | — | $6,740,206 | ($892,329 | ) | ||||||||
BNP Paribas | 7,234,407 | $7,234,407 | — | — | ||||||||||
Citibank N.A. | (33,467,021 | ) | — | 32,003,962 | (1,463,059 | ) | ||||||||
Deutsche Bank | (8,546,855 | ) | — | 7,021,395 | (1,525,460 | ) | ||||||||
Goldman Sachs | 2,734,552 | 2,540,000 | — | 194,552 | ||||||||||
HSBC | (12,367,980 | ) | — | 11,242,174 | (1,125,806 | ) | ||||||||
JPMorgan Chase | 3,948,435 | 905,000 | — | 3,043,435 | ||||||||||
Merrill Lynch | (31,165,210 | ) | — | 29,294,497 | (1,870,713 | ) |
Counterparty | Total market value of OTC derivatives | Collateral posted by counterparty | Collateral posted by fund | Net exposure | ||||||||||
Morgan Stanley | ($19,494,066 | ) | — | $19,135,173 | ($358,893 | ) | ||||||||
Royal Bank of Canada | (1,158,915 | ) | — | — | (1,158,915 | ) | ||||||||
Royal Bank of Scotland | (1,156,665 | ) | $3,287,000 | — | (4,443,665 | ) | ||||||||
Societe General | (2,799,981 | ) | — | 2,068,513 | (731,468 | ) | ||||||||
UBS AG | (5,853,493 | ) | — | 5,349,030 | (504,463 | ) | ||||||||
Totals | ($109,725,327 | ) | $13,966,407 | $112,854,950 | ($10,836,784 | ) |
Effect of derivative instruments on the Statement of operations
The table below summarizes the net realized gain (loss) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - net realized gain (loss) on: | ||||||||||||||||||||
Risk | Investments and foreign currency transactions 1 | Futures contracts | Written options | Swap contracts | Forward foreign currency contracts | Total | ||||||||||||||
Credit | — | — | — | $1,062,346 | — | $1,062,346 | ||||||||||||||
Equity | $4,853,407 | $52,904 | $8,162,103 | (16,109,537 | ) | — | (3,041,123 | ) | ||||||||||||
Foreign currency | — | — | — | — | ($106,361,852 | ) | (106,361,852 | ) | ||||||||||||
Interest rate | — | (29,218,874 | ) | — | 14,997,568 | — | (14,221,306 | ) | ||||||||||||
Total | $4,853,407 | ($29,165,970 | ) | $8,162,103 | ($49,623 | ) | ($106,361,852 | ) | ($122,561,935 | ) | ||||||||||
1 Realized gain/loss associated with purchased options is included in this caption on the Statement of operations. |
The table below summarizes the net change in unrealized appreciation (depreciation) included in the net increase (decrease) in net assets from operations, classified by derivative instrument and risk category, for the six months ended January 31, 2018:
Statement of operations location - change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Risk | Investments and translation of assets and liabilities in foreign currencies 1 | Futures contracts | Written options | Swap contracts | Forward foreign currency contracts | Total | ||||||||||||||
Credit | — | — | — | ($638,730 | ) | — | ($638,730 | ) | ||||||||||||
Equity | $91,470,422 | $107,232 | $1,366,055 | 1,829,604 | — | 94,773,313 | ||||||||||||||
Foreign currency | — | — | — | — | ($23,863,818 | ) | (23,863,818 | ) | ||||||||||||
Interest rate | — | 6,669,384 | — | (28,972,317 | ) | — | (22,302,933 | ) | ||||||||||||
Total | $91,470,422 | $6,776,616 | $1,366,055 | ($27,781,443 | ) | ($23,863,818 | ) | $47,967,832 | ||||||||||||
1 Change in unrealized appreciation/depreciation associated with purchased options is included in this caption on the Statement of operations. |
Note 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, including the fund. Additionally, in the normal course of business, the fund enters into contracts with service providers that contain general indemnification clauses. The fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the fund that have not yet occurred. The risk of material loss from such claims is considered remote.
Note 5 — Fees and transactions with affiliates
John Hancock Advisers, LLC (the Advisor) serves as investment advisor for the fund. John Hancock Funds, LLC (the Distributor), an affiliate of the Advisor, serves as principal underwriter of the fund. The Advisor and the Distributor are indirect, wholly owned subsidiaries of Manulife Financial Corporation (MFC).
Management fee. The fund has an investment management agreement with the Advisor under which the fund pays a daily management fee to the Advisor equivalent on an annual basis to the sum of: (a) 1.300% of the first $200 million of the fund's average daily net assets; and (b) 1.250% of the next $300 million of the fund's average daily net assets provided that net assets are less than or equal to $500 million. If net assets exceed $500 million, the following rates apply; (a) 1.200% of the first $3.0 billion of the fund's average daily net assets; (b) 1.150% of the next $2.5 billion of the fund's average daily net assets; (c) 1.120% of the next $1.5 billion of the fund's average daily net assets; (d) 1.100% of the next $3.0 billion of the fund's average daily net assets; and (e) 1.070% of the fund's average daily net assets in excess of $10.0 billion. The Advisor has a subadvisory agreement with Standard Life Investments (Corporate Funds) Limited. The fund is not responsible for payment of the subadvisory fees.
The Advisor has contractually agreed to waive a portion of its management fee and/or reimburse expenses for certain funds of the John Hancock group of funds complex, including the fund (the participating portfolios). This waiver is based upon aggregate net assets of all the participating portfolios. The amount of the reimbursement is calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each fund. During the six months ended January 31, 2018, this waiver amounted to 0.01% of the fund's average net assets (on an annualized basis). This arrangement may be amended or terminated at any time by the Advisor upon notice to the fund and with the approval of the Board of Trustees.
Prior to December 1, 2017, the Advisor had contractually agreed to waive and/or reimburse all class-specific expenses for Class R6 shares of the fund to the extent they exceeded 0.00% of average annual net assets attributable to the class.
For the six months ended January 31, 2018, the expense reductions described above amounted to the following:
Class | Expense reduction | Class | Expense reduction | |
Class A | $6,965 | Class R6 | $55,746 | |
Class C | 6,070 | Class NAV | 36,542 | |
Class I | 137,455 | Total | $242,869 | |
Class R2 | 91 |
Expenses waived or reimbursed in the current fiscal period are not subject to recapture in future fiscal periods.
The investment management fees, including the impact of the waivers and reimbursements as described above, incurred for the six months ended January 31, 2018 were equivalent to a net annual effective rate of 1.17% of the fund's average daily net assets.
Accounting and legal services. Pursuant to a service agreement, the fund reimburses the Advisor for all expenses associated with providing the administrative, financial, legal, accounting and recordkeeping services to the fund, including the preparation of all tax returns, periodic reports to shareholders and regulatory reports, among other services. These expenses are allocated to each share class based on its relative net assets at the time the expense was incurred. These accounting and legal services fees incurred for the six months ended January 31, 2018 amounted to an annual rate of 0.02% of the fund's average daily net assets.
Distribution and service plans. The fund has a distribution agreement with the Distributor. The fund has adopted distribution and service plans with respect to Class A, Class C, and Class R2 shares pursuant to Rule 12b-1 under the 1940 Act, to pay the Distributor for services provided as the distributor of shares of the fund. In addition, under a service plan for Class R2 shares, the fund pays for certain other services. The fund may pay up to the following contractual rates of
distribution and service fees under these arrangements, expressed as an annual percentage of average daily net assets for each class of the fund's shares:
Class | Rule 12b-1 fee | Service fee |
Class A | 0.30% | — |
Class C | 1.00% | — |
Class R2 | 0.25% | 0.25% |
Sales charges. Class A shares are assessed up-front sales charges, which resulted in payments to the Distributor amounting to $27,644 for the six months ended January 31, 2018. Of this amount, $4,539 was retained and used for printing prospectuses, advertising, sales literature and other purposes, $23,062 was paid as sales commissions to broker-dealers and $43 was paid as sales commissions to sales personnel of Signator Investors, Inc., a broker-dealer affiliate of the Advisor.
Class A and Class C shares may be subject to contingent deferred sales charges (CDSCs). Certain Class A shares that are acquired through purchases of $1 million or more and are redeemed within one year of purchase are subject to a 1.00% sales charge. Class C shares that are redeemed within one year of purchase are subject to a 1.00% CDSC. CDSCs are applied to the lesser of the current market value at the time of redemption or the original purchase cost of the shares being redeemed. Proceeds from CDSCs are used to compensate the Distributor for providing distribution-related services in connection with the sale of these shares. During the six months ended January 31, 2018, CDSCs received by the Distributor amounted to $0 and $2,058 for Class A and Class C shares, respectively.
Transfer agent fees. The John Hancock Group of Funds has a complex-wide transfer agent agreement with John Hancock Signature Services, Inc. (Signature Services), an affiliate of the Advisor. The transfer agent fees paid to Signature Services are determined based on the cost to Signature Services (Signature Services Cost) of providing recordkeeping services. It also includes out-of-pocket expenses, including payments made to third-parties for recordkeeping services provided to their clients who invest in one or more John Hancock funds. In addition, Signature Services Cost may be reduced by certain fees that Signature Services receives in connection with retirement and small accounts. Signature Services Cost is calculated monthly and allocated, as applicable, to five categories of share classes: Retail Share and Institutional Share Classes of Non-Municipal Bond Funds, Class R6 Shares, Retirement Share Classes and Municipal Bond Share Classes. Within each of these categories, the applicable costs are allocated to the affected John Hancock affiliated funds and/or classes, based on the relative average daily net assets.
Class level expenses. Class level expenses for the six months ended January 31, 2018 were:
Class | Distribution and service fees | Transfer agent fees |
Class A | $248,936 | $90,213 |
Class C | 723,099 | 78,629 |
Class I | — | 1,782,079 |
Class R2 | 5,297 | 135 |
Class R6 | — | 41,059 |
Total | $977,332 | $1,992,115 |
Trustee expenses. The fund compensates each Trustee who is not an employee of the Advisor or its affiliates. The costs of paying Trustee compensation and expenses are allocated to the fund based on its net assets relative to other funds within the John Hancock group of funds complex.
Note 6 — Fund share transactions
Transactions in fund shares for the six months ended January 31, 2018 and for the year ended July 31, 2017 were as follows:
Six months ended 1-31-18 | Year ended 7-31-17 | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Class A shares | ||||||||||||||||||||||||||
Sold | 1,717,620 | $17,871,985 | 7,965,812 | $79,825,732 | ||||||||||||||||||||||
Repurchased | (6,810,525 | ) | (70,606,738 | ) | (94,506,235 | ) | (949,196,717 | ) | ||||||||||||||||||
Net decrease | (5,092,905 | ) | ($52,734,753 | ) | (86,540,423 | ) | ($869,370,985 | ) | ||||||||||||||||||
Class C shares | ||||||||||||||||||||||||||
Sold | 204,745 | $2,094,386 | 1,135,798 | $11,315,724 | ||||||||||||||||||||||
Repurchased | (3,962,644 | ) | (40,548,196 | ) | (16,417,457 | ) | (163,982,229 | ) | ||||||||||||||||||
Net decrease | (3,757,899 | ) | ($38,453,810 | ) | (15,281,659 | ) | ($152,666,505 | ) | ||||||||||||||||||
Class I shares | ||||||||||||||||||||||||||
Sold | 29,428,072 | $307,957,556 | 121,325,105 | $1,227,185,352 | ||||||||||||||||||||||
Repurchased | (77,592,588 | ) | (809,787,772 | ) | (318,554,997 | ) | (3,212,025,393 | ) | ||||||||||||||||||
Net decrease | (48,164,516 | ) | ($501,830,216 | ) | (197,229,892 | ) | ($1,984,840,041 | ) | ||||||||||||||||||
Class R2 shares | ||||||||||||||||||||||||||
Sold | 9,594 | $98,835 | 50,357 | $504,542 | ||||||||||||||||||||||
Repurchased | (44,182 | ) | (457,220 | ) | (153,082 | ) | (1,528,081 | ) | ||||||||||||||||||
Net decrease | (34,588 | ) | ($358,385 | ) | (102,725 | ) | ($1,023,539 | ) | ||||||||||||||||||
Class R6 shares | ||||||||||||||||||||||||||
Sold | 3,789,637 | $39,763,603 | 23,519,574 | $239,268,995 | ||||||||||||||||||||||
Repurchased | (12,975,636 | ) | (135,697,057 | ) | (20,850,284 | ) | (210,607,208 | ) | ||||||||||||||||||
Net increase (decrease) | (9,185,999 | ) | ($95,933,454 | ) | 2,669,290 | $28,661,787 | ||||||||||||||||||||
Class NAV shares | ||||||||||||||||||||||||||
Sold | 491,297 | $5,118,566 | 1,996,155 | $20,045,886 | ||||||||||||||||||||||
Repurchased | (11,262,144 | ) | (116,915,288 | ) | (24,037,659 | ) | (245,549,629 | ) | ||||||||||||||||||
Net decrease | (10,770,847 | ) | ($111,796,722 | ) | (22,041,504 | ) | ($225,503,743 | ) | ||||||||||||||||||
Total net decrease | (77,006,754 | ) | ($801,107,340 | ) | (318,526,913 | ) | ($3,204,743,026 | ) |
Affiliates of the Fund owned 99.3% Class NAV shares of the fund on January 31, 2018. Such concentration of shareholders' capital could have a material effect on the fund if such shareholders redeem from the fund.
Note 7 — Purchase and sale of securities
Purchases and sales of securities, other than short-term securities and U.S. Treasury obligations, amounted to $894,825,485 and $1,793,588,827, respectively, for the six months ended January 31, 2018. Purchases and sales of U.S. Treasury obligations aggregated $45,809,625 and $175,914,901, respectively, for the six months ended January 31, 2018.
Note 8 — Investment by affiliated funds
Certain investors in the fund are affiliated funds that are managed by the Advisor and its affiliates. The affiliated funds do not invest in the fund for the purpose of exercising management or control; however, this investment may represent a significant portion of the fund's net assets. At January 31, 2018, funds within the John Hancock group of funds complex held 17.5% of the fund's net assets. As of January 31, 2018, no affiliated funds owned 5% or more of the fund's net assets.
Trustees Hassell H. McClellan, Chairperson Officers Andrew G. Arnott John J. Danello Francis V. Knox, Jr. Charles A. Rizzo Salvatore Schiavone | Investment advisor John Hancock Advisers, LLC Subadvisor Standard Life Investments (Corporate Funds) Limited Principal distributor John Hancock Funds, LLC Custodian Citibank, N.A. Transfer agent John Hancock Signature Services, Inc. Legal counsel K&L Gates LLP |
*Member of the Audit Committee
†Non-Independent Trustee
#Effective 6-20-17
The fund's proxy voting policies and procedures, as well as the fund 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 Form N-Q. The fund's Form N-Q is available on our website and the SEC's website, sec.gov, and can be reviewed and copied (for a fee) at the SEC's Public Reference Room in Washington, DC. Call 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 website at jhinvestments.com or by calling 800-225-5291.
You can also contact us: | |||
800-225-5291 jhinvestments.com | Regular mail: John Hancock Signature Services, Inc. | Express mail: John Hancock Signature Services, Inc. |
John Hancock family of funds
DOMESTIC EQUITY FUNDS Balanced Blue Chip Growth Classic Value Disciplined Value Disciplined Value Mid Cap Equity Income Fundamental All Cap Core Fundamental Large Cap Core Fundamental Large Cap Value New Opportunities Small Cap Core Small Cap Value Small Company Strategic Growth U.S. Global Leaders Growth U.S. Growth Value Equity GLOBAL AND INTERNATIONAL EQUITY FUNDS Disciplined Value International Emerging Markets Emerging Markets Equity Fundamental Global Franchise Global Equity Global Shareholder Yield Greater China Opportunities International Growth International Small Company International Value Equity | INCOME FUNDS Bond California Tax-Free Income Emerging Markets Debt Floating Rate Income Global Income Government Income High Yield High Yield Municipal Bond Income Investment Grade Bond Money Market Short Duration Credit Opportunities Spectrum Income Strategic Income Opportunities Tax-Free Bond ALTERNATIVE AND SPECIALTY FUNDS Absolute Return Currency Alternative Asset Allocation Enduring Assets Financial Industries Global Absolute Return Strategies Global Conservative Absolute Return Global Focused Strategies Natural Resources Redwood Regional Bank Seaport Technical Opportunities |
A fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the fund. To obtain a prospectus, contact your financial professional, call John Hancock Investments at 800-225-5291, or visit our website at jhinvestments.com. Please read the prospectus carefully before investing or sending money.
ASSET ALLOCATION Income Allocation Multi-Index Lifetime Portfolios Multi-Index Preservation Portfolios Multimanager Lifestyle Portfolios Multimanager Lifetime Portfolios Retirement Income 2040 EXCHANGE-TRADED FUNDS John Hancock Multifactor Consumer Discretionary ETF John Hancock Multifactor Consumer Staples ETF John Hancock Multifactor Developed International ETF John Hancock Multifactor Energy ETF John Hancock Multifactor Financials ETF John Hancock Multifactor Healthcare ETF John Hancock Multifactor Industrials ETF John Hancock Multifactor Large Cap ETF John Hancock Multifactor Materials ETF John Hancock Multifactor Mid Cap ETF John Hancock Multifactor Small Cap ETF John Hancock Multifactor Technology ETF John Hancock Multifactor Utilities ETF | ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS ESG All Cap Core ESG Core Bond ESG International Equity ESG Large Cap Core CLOSED-END FUNDS Financial Opportunities Hedged Equity & Income Income Securities Trust Investors Trust Preferred Income Preferred Income II Preferred Income III Premium Dividend Tax-Advantaged Dividend Income Tax-Advantaged Global Shareholder Yield |
John Hancock Multifactor ETF shares are bought and sold at market price (not NAV), and are not individually redeemed
from the fund. Brokerage commissions will reduce returns.
John Hancock ETFs are distributed by Foreside Fund Services, LLC, and are subadvised by Dimensional Fund Advisors LP.
Foreside is not affiliated with John Hancock Funds, LLC or Dimensional Fund Advisors LP.
Dimensional Fund Advisors LP receives compensation from John Hancock in connection with licensing rights to the
John Hancock Dimensional indexes. Dimensional Fund Advisors LP does not sponsor, endorse, or sell, and makes no
representation as to the advisability of investing in, John Hancock Multifactor ETFs.
John Hancock Investments
A trusted brand
John Hancock Investments is a premier asset manager representing one of
America's most trusted brands, with a heritage of financial stewardship dating
back to 1862. Helping our shareholders pursue their financial goals is at the
core of everything we do. It's why we support the role of professional financial
advice and operate with the highest standards of conduct and integrity.
A better way to invest
We serve investors globally through a unique multimanager approach:
We search the world to find proven portfolio teams with specialized
expertise for every strategy we offer, then we apply robust investment
oversight to ensure they continue to meet our uncompromising standards
and serve the best interests of our shareholders.
Results for investors
Our unique approach to asset management enables us to provide a diverse set
of investments backed by some of the world's best managers, along with strong
risk-adjusted returns across asset classes.
| John Hancock Funds, LLC n Member FINRA, SIPC 601 Congress Street n Boston, MA 02210-2805 800-225-5291 n jhinvestments.com | |
This report is for the information of the shareholders of John Hancock Global Absolute Return Strategies Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by a prospectus. | ||
MF431080 | 395SA 1/18 3/18 |
ITEM 2. CODE OF ETHICS.
(a)Not Applicable
(b)Not Applicable
(c)Not Applicable
(d)Not Applicable
(e)Not Applicable
(f)Not Applicable
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not Applicable
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Not Applicable
(b) Not Applicable
(c) Not Applicable
(d) Not Applicable
(e) Not Applicable
(f) Not Applicable.
(g) Not Applicable
(h) Not Applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
(a) Included with Item 1.
(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.
Not Applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such disclosure controls and procedures include controls and procedures designed to ensure that such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Within 90 days prior to the filing date of this Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures relating to information required to be disclosed on Form N-CSR. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are operating effectively to ensure that:
(i) information required to be disclosed in this Form N-CSR is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission, and (ii) information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
(b) CHANGE IN REGISTRANT’S INTERNAL CONTROL: Not Applicable.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 12. EXHIBITS.
(a)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached.
(b)(1) Separate certifications for the registrant's principal executive officer and principal financial officer, as required by 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and Rule 30a-2(b) under the Investment Company Act of 1940, are attached. The certifications furnished pursuant to this paragraph are not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section. Such certifications are not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates them by reference.
(c)(1) Submission of Matters to a Vote of Security Holders is attached. See attached “John Hancock Funds – Nominating and Governance Committee Charter”.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
JOHN HANCOCK FUNDS II
/s/ Andrew G. Arnott |
Andrew G. Arnott |
President |
Date: March 19, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
/s/ Andrew G. Arnott |
Andrew G. Arnott |
President |
Date: March 19, 2018 |
/s/ Charles A. Rizzo |
Charles A. Rizzo |
Chief Financial Officer |
Date: March 19, 2018 |