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)
200 Berkeley Street, BOSTON, MA 02116
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(Address of principal executive offices) (Zip code)
SALVATORE SCHIAVONE, 200 Berkeley Street, BOSTON, MA 02116
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(Name and address of agent for service)
Registrant's telephone number, including area code: (617) 543-9634
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Date of fiscal year end: 7/31
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Date of reporting period: 7/31/22
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ITEM 1. REPORTS TO STOCKHOLDERS.
Manulife Investment Management
John Hancock Investment Management
Head of Wealth and Asset Management,
United States and Europe
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 1 |
2 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 3 |
4 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 5 |
Average annual total returns (%) with maximum sales charge | Cumulative total returns (%) with maximum sales charge | ||||
1-year | 5-year | 10-year | 5-year | 10-year | |
Class A | -12.71 | -1.49 | 0.84 | -7.23 | 8.77 |
Class C1 | -11.57 | -1.55 | 0.58 | -7.51 | 5.89 |
Class I2 | -9.79 | -0.58 | 1.49 | -2.87 | 15.89 |
Class R62 | -9.68 | -0.45 | 1.60 | -2.21 | 17.18 |
Class NAV2 | -9.65 | -0.44 | 1.62 | -2.20 | 17.38 |
Index† | 0.24 | 1.03 | 0.58 | 5.24 | 5.97 |
Class A | Class C | Class I | Class R6 | Class NAV | |
Gross (%) | 1.43 | 2.13 | 1.13 | 1.03 | 1.02 |
Net (%) | 1.42 | 2.12 | 1.12 | 1.02 | 1.01 |
6 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
Start date | With maximum sales charge ($) | Without sales charge ($) | Index ($) | |
Class C1,3 | 7-31-12 | 10,589 | 10,589 | 10,597 |
Class I2 | 7-31-12 | 11,589 | 11,589 | 10,597 |
Class R62 | 7-31-12 | 11,718 | 11,718 | 10,597 |
Class NAV2 | 7-31-12 | 11,738 | 11,738 | 10,597 |
1 | Class C shares were first offered on 8-28-14. Returns prior to this date are those of Class A shares that have not been adjusted for class-specific expenses; otherwise, returns would vary. |
2 | For certain types of investors, as described in the fund’s prospectuses. |
3 | The contingent deferred sales charge is not applicable. |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 7 |
8 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
Account value on 2-1-2022 | Ending value on 7-31-2022 | Expenses paid during period ended 7-31-20221 | Annualized expense ratio | ||
Class A | Actual expenses/actual returns | $1,000.00 | $918.10 | $6.61 | 1.39% |
Hypothetical example | 1,000.00 | 1,017.90 | 6.95 | 1.39% | |
Class C | Actual expenses/actual returns | 1,000.00 | 915.80 | 9.93 | 2.09% |
Hypothetical example | 1,000.00 | 1,014.40 | 10.44 | 2.09% | |
Class I | Actual expenses/actual returns | 1,000.00 | 920.10 | 5.19 | 1.09% |
Hypothetical example | 1,000.00 | 1,019.40 | 5.46 | 1.09% | |
Class R6 | Actual expenses/actual returns | 1,000.00 | 920.10 | 4.67 | 0.98% |
Hypothetical example | 1,000.00 | 1,019.90 | 4.91 | 0.98% | |
Class NAV | Actual expenses/actual returns | 1,000.00 | 920.40 | 4.62 | 0.97% |
Hypothetical example | 1,000.00 | 1,020.00 | 4.86 | 0.97% |
1 | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 9 |
Yield* (%) | Maturity date | Par value^ | Value | ||
Short-term investments 103.8% | $548,527,059 | ||||
(Cost $548,690,904) | |||||
U.S. Government 86.5% | 457,007,746 | ||||
U.S. Treasury Bill (A) | 0.780 | 08-18-22 | 207,000,000 | 206,798,390 | |
U.S. Treasury Bill (A) | 1.590 | 09-22-22 | 22,770,000 | 22,702,329 | |
U.S. Treasury Bill (A) | 2.500 | 11-25-22 | 229,390,000 | 227,507,027 |
Yield (%) | Shares | Value | |||
Short-term funds 17.3% | 91,519,313 | ||||
State Street Institutional Treasury Plus Money Market Fund, Premier Class | 1.8867(B) | 91,519,313 | 91,519,313 |
Total investments (Cost $548,690,904) 103.8% | $548,527,059 | ||||
Other assets and liabilities, net (3.8%) | (19,841,927) | ||||
Total net assets 100.0% | $528,685,132 |
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 7-31-22. |
* | 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. |
10 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Contract to buy | Contract to sell | Counterparty (OTC) | Contractual settlement date | Unrealized appreciation | Unrealized depreciation | ||
AUD | 76,918,603 | USD | 54,128,646 | DB | 9/21/2022 | — | $(343,881) |
AUD | 76,918,603 | USD | 54,128,418 | MSCS | 9/21/2022 | — | (343,650) |
CAD | 169,095,765 | USD | 134,196,443 | DB | 9/21/2022 | — | (2,168,276) |
CAD | 105,751,593 | USD | 83,786,028 | MSCS | 9/21/2022 | — | (1,216,313) |
CHF | 89,821,671 | USD | 92,694,667 | DB | 9/21/2022 | $2,021,639 | — |
CHF | 88,738,670 | USD | 91,591,970 | MSCS | 9/21/2022 | 1,982,319 | — |
EUR | 182,965,091 | USD | 196,440,513 | DB | 9/21/2022 | — | (8,787,344) |
EUR | 165,327,161 | USD | 176,753,724 | MSCS | 9/21/2022 | — | (7,190,420) |
GBP | 127,794,627 | USD | 157,800,119 | DB | 9/21/2022 | — | (1,994,033) |
GBP | 103,952,741 | USD | 127,738,876 | MSCS | 9/21/2022 | — | (1,000,610) |
JPY | 25,323,140,537 | USD | 188,300,654 | DB | 9/21/2022 | 2,327,652 | — |
JPY | 13,508,383,290 | USD | 99,651,569 | MSCS | 9/21/2022 | 2,037,248 | — |
NOK | 544,515,267 | USD | 55,228,342 | DB | 9/21/2022 | 1,171,205 | — |
NOK | 544,515,267 | USD | 55,228,167 | MSCS | 9/21/2022 | 1,171,380 | — |
NZD | 83,498,308 | USD | 52,436,260 | DB | 9/21/2022 | 63,986 | — |
NZD | 73,758,040 | USD | 46,148,913 | MSCS | 9/21/2022 | 227,059 | — |
SEK | 538,195,794 | USD | 54,398,195 | DB | 9/21/2022 | — | (1,319,912) |
SEK | 538,195,794 | USD | 54,397,991 | MSCS | 9/21/2022 | — | (1,319,709) |
SGD | 41,877,784 | USD | 30,241,267 | DB | 9/21/2022 | 76,714 | — |
SGD | 39,436,213 | USD | 28,463,245 | MSCS | 9/21/2022 | 87,123 | — |
USD | 50,277,528 | AUD | 72,833,883 | DB | 9/21/2022 | — | (651,028) |
USD | 50,277,744 | AUD | 72,833,883 | MSCS | 9/21/2022 | — | (650,813) |
USD | 106,898,492 | CAD | 137,811,639 | DB | 9/21/2022 | — | (703,361) |
USD | 57,422,315 | CAD | 74,467,467 | MSCS | 9/21/2022 | — | (721,088) |
USD | 241,798,069 | CHF | 232,112,071 | DB | 9/21/2022 | — | (2,962,438) |
USD | 239,188,796 | CHF | 231,029,070 | MSCS | 9/21/2022 | — | (4,429,694) |
USD | 122,649,884 | EUR | 118,973,249 | DB | 9/21/2022 | 628,206 | — |
USD | 104,010,280 | EUR | 101,335,319 | MSCS | 9/21/2022 | 78,468 | — |
USD | 78,241,318 | GBP | 63,949,087 | DB | 9/21/2022 | 275,152 | — |
USD | 48,943,113 | GBP | 40,107,201 | MSCS | 9/21/2022 | 44,766 | — |
USD | 249,859,346 | JPY | 32,501,171,476 | DB | 9/21/2022 | 5,196,048 | — |
USD | 158,277,512 | JPY | 20,686,414,229 | MSCS | 9/21/2022 | 2,553,692 | — |
USD | 52,487,745 | NOK | 515,237,976 | DB | 9/21/2022 | — | (879,331) |
USD | 52,487,912 | NOK | 515,237,976 | MSCS | 9/21/2022 | — | (879,164) |
USD | 146,001,822 | NZD | 231,174,567 | DB | 9/21/2022 | 648,915 | — |
USD | 139,625,958 | NZD | 221,434,299 | MSCS | 9/21/2022 | 397,325 | — |
USD | 35,356,835 | SEK | 363,206,907 | DB | 9/21/2022 | — | (463,583) |
USD | 35,356,964 | SEK | 363,206,907 | MSCS | 9/21/2022 | — | (463,456) |
USD | 82,654,953 | SGD | 114,508,710 | DB | 9/21/2022 | — | (245,152) |
USD | 80,882,445 | SGD | 112,067,139 | MSCS | 9/21/2022 | — | (250,050) |
$20,988,897 | $(38,983,306) |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 11 |
Derivatives Currency Abbreviations | |
AUD | Australian Dollar |
CAD | Canadian Dollar |
CHF | Swiss Franc |
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 |
Derivatives Abbreviations | |
DB | Deutsche Bank AG |
MSCS | Morgan Stanley Capital Services LLC |
OTC | Over-the-counter |
12 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Assets | |
Unaffiliated investments, at value (Cost $548,690,904) | $548,527,059 |
Unrealized appreciation on forward foreign currency contracts | 20,988,897 |
Interest receivable | 88,122 |
Receivable for fund shares sold | 234,792 |
Other assets | 50,044 |
Total assets | 569,888,914 |
Liabilities | |
Unrealized depreciation on forward foreign currency contracts | 38,983,306 |
Payable for investments purchased | 87,923 |
Payable for fund shares repurchased | 1,795,948 |
Payable to affiliates | |
Accounting and legal services fees | 23,101 |
Transfer agent fees | 11,910 |
Trustees’ fees | 947 |
Other liabilities and accrued expenses | 300,647 |
Total liabilities | 41,203,782 |
Net assets | $528,685,132 |
Net assets consist of | |
Paid-in capital | $680,443,228 |
Total distributable earnings (loss) | (151,758,096) |
Net assets | $528,685,132 |
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 ($7,489,923 ÷ 845,169 shares)1 | $8.86 |
Class C ($478,456 ÷ 54,997 shares)1 | $8.70 |
Class I ($135,826,805 ÷ 14,745,302 shares) | $9.21 |
Class R6 ($161,586 ÷ 17,311 shares) | $9.33 |
Class NAV ($384,728,362 ÷ 41,096,689 shares) | $9.36 |
Maximum offering price per share | |
Class A (net asset value per share ÷ 97%)2 | $9.13 |
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. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 13 |
Investment income | |
Interest | $1,621,877 |
Expenses | |
Investment management fees | 5,030,130 |
Distribution and service fees | 31,138 |
Accounting and legal services fees | 72,970 |
Transfer agent fees | 134,211 |
Trustees’ fees | 9,025 |
Custodian fees | 166,660 |
State registration fees | 84,539 |
Printing and postage | 10,227 |
Professional fees | 153,008 |
Other | 44,078 |
Total expenses | 5,735,986 |
Less expense reductions | (48,525) |
Net expenses | 5,687,461 |
Net investment loss | (4,065,584) |
Realized and unrealized gain (loss) | |
Net realized gain (loss) on | |
Unaffiliated investments | (117) |
Forward foreign currency contracts | (33,257,003) |
(33,257,120) | |
Change in net unrealized appreciation (depreciation) of | |
Unaffiliated investments | (148,254) |
Forward foreign currency contracts | (17,947,943) |
(18,096,197) | |
Net realized and unrealized loss | (51,353,317) |
Decrease in net assets from operations | $(55,418,901) |
14 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
Year ended 7-31-22 | Year ended 7-31-21 | |
Increase (decrease) in net assets | ||
From operations | ||
Net investment loss | $(4,065,584) | $(4,398,848) |
Net realized gain (loss) | (33,257,120) | 6,517,838 |
Change in net unrealized appreciation (depreciation) | (18,096,197) | (14,180,739) |
Decrease in net assets resulting from operations | (55,418,901) | (12,061,749) |
From fund share transactions | (18,427,795) | 269,592,878 |
Total increase (decrease) | (73,846,696) | 257,531,129 |
Net assets | ||
Beginning of year | 602,531,828 | 345,000,699 |
End of year | $528,685,132 | $602,531,828 |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 15 |
CLASS A SHARES Period ended | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.85 | $10.25 | $8.77 | $8.59 | $9.54 |
Net investment income (loss)1 | (0.10) | (0.14) | —2 | 0.08 | 0.01 |
Net realized and unrealized gain (loss) on investments | (0.89) | (0.26) | 1.72 | 0.13 | (0.96) |
Total from investment operations | (0.99) | (0.40) | 1.72 | 0.21 | (0.95) |
Less distributions | |||||
From net investment income | — | — | (0.24) | (0.03) | — |
Net asset value, end of period | $8.86 | $9.85 | $10.25 | $8.77 | $8.59 |
Total return (%)3,4 | (10.05) | (3.81) | 20.03 | 2.43 | (10.05) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $7 | $9 | $12 | $13 | $17 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.41 | 1.48 | 1.43 | 1.35 | 1.33 |
Expenses including reductions | 1.40 | 1.47 | 1.43 | 1.35 | 1.32 |
Net investment income (loss) | (1.11) | (1.41) | (0.04) | 0.92 | 0.06 |
Portfolio turnover (%)5 | 0 | 0 | 0 | 0 | 0 |
1 | Based on average daily shares outstanding. |
2 | Less than $0.005 per share. |
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 | 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%. |
16 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS C SHARES Period ended | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $9.74 | $10.20 | $8.73 | $8.58 | $9.60 |
Net investment income (loss)1 | (0.17) | (0.21) | (0.08) | 0.02 | (0.06) |
Net realized and unrealized gain (loss) on investments | (0.87) | (0.25) | 1.73 | 0.13 | (0.96) |
Total from investment operations | (1.04) | (0.46) | 1.65 | 0.15 | (1.02) |
Less distributions | |||||
From net investment income | — | — | (0.18) | — | — |
Net asset value, end of period | $8.70 | $9.74 | $10.20 | $8.73 | $8.58 |
Total return (%)2,3 | (10.68) | (4.51) | 19.24 | 1.75 | (10.62) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—4 | $1 | $1 | $—4 | $1 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 2.11 | 2.18 | 2.13 | 2.05 | 2.03 |
Expenses including reductions | 2.10 | 2.17 | 2.13 | 2.05 | 2.02 |
Net investment income (loss) | (1.80) | (2.11) | (0.89) | 0.21 | (0.67) |
Portfolio turnover (%)5 | 0 | 0 | 0 | 0 | 0 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Does not reflect the effect of sales charges, if any. |
4 | Less than $500,000. |
5 | 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%. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 17 |
CLASS I SHARES Period ended | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.21 | $10.59 | $9.05 | $8.87 | $9.82 |
Net investment income (loss)1 | (0.08) | (0.11) | 0.05 | 0.11 | 0.04 |
Net realized and unrealized gain (loss) on investments | (0.92) | (0.27) | 1.76 | 0.13 | (0.99) |
Total from investment operations | (1.00) | (0.38) | 1.81 | 0.24 | (0.95) |
Less distributions | |||||
From net investment income | — | — | (0.27) | (0.06) | — |
Net asset value, end of period | $9.21 | $10.21 | $10.59 | $9.05 | $8.87 |
Total return (%)2 | (9.79) | (3.59) | 20.56 | 2.67 | (9.77) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $136 | $126 | $125 | $624 | $720 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.11 | 1.18 | 1.13 | 1.07 | 1.04 |
Expenses including reductions | 1.10 | 1.17 | 1.12 | 1.06 | 1.03 |
Net investment income (loss) | (0.80) | (1.11) | 0.56 | 1.21 | 0.42 |
Portfolio turnover (%)3 | 0 | 0 | 0 | 0 | 0 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | 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%. |
18 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
CLASS R6 SHARES Period ended | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.34 | $10.71 | $9.15 | $8.96 | $9.91 |
Net investment income (loss)1 | (0.07) | (0.10) | 0.07 | 0.10 | 0.05 |
Net realized and unrealized gain (loss) on investments | (0.94) | (0.27) | 1.77 | 0.16 | (1.00) |
Total from investment operations | (1.01) | (0.37) | 1.84 | 0.26 | (0.95) |
Less distributions | |||||
From net investment income | — | — | (0.28) | (0.07) | — |
Net asset value, end of period | $9.33 | $10.34 | $10.71 | $9.15 | $8.96 |
Total return (%)2 | (9.68) | (3.46) | 20.58 | 2.87 | (9.59) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $—3 | $—3 | $—3 | $1 | $119 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.01 | 1.08 | 1.02 | 0.95 | 0.94 |
Expenses including reductions | 1.00 | 1.07 | 1.01 | 0.95 | 0.92 |
Net investment income (loss) | (0.69) | (1.01) | 0.71 | 1.06 | 0.48 |
Portfolio turnover (%)4 | 0 | 0 | 0 | 0 | 0 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | Less than $500,000. |
4 | 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%. |
SEE NOTES TO FINANCIAL STATEMENTS | ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 19 |
CLASS NAV SHARES Period ended | 7-31-22 | 7-31-21 | 7-31-20 | 7-31-19 | 7-31-18 |
Per share operating performance | |||||
Net asset value, beginning of period | $10.37 | $10.74 | $9.18 | $8.99 | $9.94 |
Net investment income (loss)1 | (0.07) | (0.10) | 0.04 | 0.12 | 0.04 |
Net realized and unrealized gain (loss) on investments | (0.94) | (0.27) | 1.80 | 0.14 | (0.99) |
Total from investment operations | (1.01) | (0.37) | 1.84 | 0.26 | (0.95) |
Less distributions | |||||
From net investment income | — | — | (0.28) | (0.07) | — |
Net asset value, end of period | $9.36 | $10.37 | $10.74 | $9.18 | $8.99 |
Total return (%)2 | (9.65) | (3.45) | 20.52 | 2.85 | (9.56) |
Ratios and supplemental data | |||||
Net assets, end of period (in millions) | $385 | $467 | $207 | $401 | $620 |
Ratios (as a percentage of average net assets): | |||||
Expenses before reductions | 1.00 | 1.07 | 1.01 | 0.94 | 0.92 |
Expenses including reductions | 0.99 | 1.06 | 1.00 | 0.93 | 0.92 |
Net investment income (loss) | (0.70) | (1.01) | 0.47 | 1.33 | 0.47 |
Portfolio turnover (%)3 | 0 | 0 | 0 | 0 | 0 |
1 | Based on average daily shares outstanding. |
2 | Total returns would have been lower had certain expenses not been reduced during the applicable periods. |
3 | 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%. |
20 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT | SEE NOTES TO FINANCIAL STATEMENTS |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Currency Fund | 21 |
Total value at 7-31-22 | Level 1 quoted price | Level 2 significant observable inputs | Level 3 significant unobservable inputs | |
Investments in securities: | ||||
Assets | ||||
Short-term investments | $548,527,059 | $91,519,313 | $457,007,746 | — |
Total investments in securities | $548,527,059 | $91,519,313 | $457,007,746 | — |
Derivatives: | ||||
Assets | ||||
Forward foreign currency contracts | $20,988,897 | — | $20,988,897 | — |
Liabilities | ||||
Forward foreign currency contracts | (38,983,306) | — | (38,983,306) | — |
22 | JOHN HANCOCK Absolute Return Currency Fund | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Currency Fund | 23 |
Risk | Statement of assets and liabilities location | Financial instruments location | Assets derivatives fair value | Liabilities derivatives fair value |
Currency | Unrealized appreciation (depreciation) on forward foreign currency contracts | Forward foreign currency contracts | $20,988,897 | $(38,983,306) |
24 | JOHN HANCOCK Absolute Return Currency Fund | ANNUAL REPORT |
OTC Financial Instruments | Asset | Liability |
Forward foreign currency contracts | $20,988,897 | $(38,983,306) |
Totals | $20,988,897 | $(38,983,306) |
Counterparty | Assets | Liabilities | Total Market Value of OTC Derivatives | Collateral Posted by Counterparty1 | Collateral Posted by Portfolio1 | Net Exposure |
Deutsche Bank AG | $12,409,517 | $(20,518,339) | $(8,108,822) | — | $8,108,822 | — |
Morgan Stanley & Co. International PLC | 8,579,380 | (18,464,967) | (9,885,587) | — | 9,885,587 | — |
Totals | 20,988,897 | (38,983,306) | (17,994,409) | — | 17,994,409 | — |
1 Reflects collateral posted by the counterparty or posted by the fund, excluding any excess collateral amounts. |
Statement of operations location - Net realized gain (loss) on: | |
Risk | Forward foreign currency contracts |
Currency | $(33,257,003) |
Statement of operations location - Change in net unrealized appreciation (depreciation) of: | |
Risk | Forward foreign currency contracts |
Currency | $(17,947,943) |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Currency Fund | 25 |
Class | Expense reduction |
Class A | $763 |
Class C | 41 |
Class I | 9,376 |
Class | Expense reduction |
Class R6 | $16 |
Class NAV | 38,329 |
Total | $48,525 |
26 | JOHN HANCOCK Absolute Return Currency Fund | ANNUAL REPORT |
Class | Rule 12b-1 Fee |
Class A | 0.30% |
Class C | 1.00% |
Class | Distribution and service fees | Transfer agent fees |
Class A | $26,397 | $10,077 |
Class C | 4,741 | 543 |
Class I | — | 123,576 |
Class R6 | — | 15 |
Total | $31,138 | $134,211 |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Currency Fund | 27 |
Borrower or Lender | Weighted Average Loan Balance | Days Outstanding | Weighted Average Interest Rate | Interest Income (Expense) |
Lender | $26,000,000 | 1 | 0.665% | $480 |
Year Ended 7-31-22 | Year Ended 7-31-21 | |||
Shares | Amount | Shares | Amount | |
Class A shares | ||||
Sold | 305,624 | $2,874,793 | 379,895 | $3,791,581 |
Repurchased | (420,952) | (3,936,295) | (618,248) | (6,135,367) |
Net decrease | (115,328) | $(1,061,502) | (238,353) | $(2,343,786) |
Class C shares | ||||
Sold | 17,604 | $161,361 | 12,815 | $126,385 |
Repurchased | (20,368) | (192,126) | (14,973) | (149,109) |
Net decrease | (2,764) | $(30,765) | (2,158) | $(22,724) |
Class I shares | ||||
Sold | 7,849,221 | $74,810,687 | 6,769,888 | $69,698,246 |
Repurchased | (5,396,769) | (52,609,189) | (6,316,680) | (64,621,196) |
Net increase | 2,452,452 | $22,201,498 | 453,208 | $5,077,050 |
Class R2 shares | ||||
Repurchased | — | — | (5,087) | $(51,697) |
Net decrease | — | — | (5,087) | $(51,697) |
Class R6 shares | ||||
Sold | 5,874 | $58,214 | 10,226 | $105,700 |
Repurchased | (5,582) | (54,156) | (7,096) | (74,844) |
Net increase | 292 | $4,058 | 3,130 | $30,856 |
Class NAV shares | ||||
Sold | 6,004,139 | $59,191,347 | 27,321,388 | $282,803,379 |
Repurchased | (9,940,584) | (98,732,431) | (1,524,686) | (15,900,200) |
Net increase (decrease) | (3,936,445) | $(39,541,084) | 25,796,702 | $266,903,179 |
Total net increase (decrease) | (1,601,793) | $(18,427,795) | 26,007,442 | $269,592,878 |
28 | JOHN HANCOCK Absolute Return Currency Fund | ANNUAL REPORT |
Fund | Affiliated Concentration |
John Hancock Funds II Multimanager Lifestyle Balanced Portfolio | 15.4% |
John Hancock Funds II Multimanager Lifestyle Growth Portfolio | 12.2% |
John Hancock Funds II Multimanager Lifestyle Conservative Portfolio | 10.1% |
John Hancock Funds II Alternative Asset Allocation Fund | 8.8% |
John Hancock Funds II Multimanager Lifestyle Moderate Portfolio | 5.7% |
ANNUAL REPORT | JOHN HANCOCK Absolute Return Currency Fund | 29 |
30 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 31 |
32 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
(a) | the skills and competency with which the Advisor has in the past managed the Trust’s affairs and its subadvisory relationship, the Advisor’s oversight and monitoring of the Subadvisor’s investment performance and compliance programs, such as the Subadvisor’s compliance with fund policies and objectives, review of brokerage matters, including with respect to trade allocation and best execution and the Advisor’s timeliness in responding to performance issues; |
(b) | the background, qualifications and skills of the Advisor’s personnel; |
(c) | the Advisor’s compliance policies and procedures and its responsiveness to regulatory changes and fund industry developments; |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 33 |
(d) | the Advisor’s administrative capabilities, including its ability to supervise the other service providers for the fund, as well as the Advisor’s oversight of any securities lending activity, its monitoring of class action litigation and collection of class action settlements on behalf of the fund, and bringing loss recovery actions on behalf of the fund; |
(e) | the financial condition of the Advisor and whether it has the financial wherewithal to provide a high level and quality of services to the fund; |
(f) | the Advisor’s initiatives intended to improve various aspects of the Trust’s operations and investor experience with the fund; and |
(g) | the Advisor’s reputation and experience in serving as an investment advisor to the Trust and the benefit to shareholders of investing in funds that are part of a family of funds offering a variety of investments. |
(a) | reviewed information prepared by management regarding the fund’s performance; |
(b) | considered the comparative performance of an applicable benchmark index; |
(c) | considered the performance of comparable funds, if any, as included in the report prepared by an independent third-party provider of fund data; and |
(d) | took into account the Advisor’s analysis of the fund’s performance and its plans and recommendations regarding the Trust’s subadvisory arrangements generally. |
34 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
(a) | reviewed financial information of the Advisor; |
(b) | reviewed and considered information presented by the Advisor regarding the net profitability to the Advisor and its affiliates with respect to the fund; |
(c) | received and reviewed profitability information with respect to the John Hancock Fund Complex as a whole and with respect to the fund; |
(d) | received information with respect to the Advisor’s allocation methodologies used in preparing the profitability data and considered that the Advisor hired an independent third-party consultant to provide an analysis of the Advisor’s allocation methodologies; |
(e) | considered that the John Hancock insurance companies that are affiliates of the Advisor, as shareholders of the Trust directly or through their separate accounts, receive certain tax credits or deductions relating to foreign taxes paid and dividends received by certain funds of the Trust and noted that these tax benefits, which are not available to participants in qualified retirement plans under applicable income tax law, are reflected in the profitability information reviewed by the Board; |
(f) | considered that the Advisor also provides administrative services to the fund on a cost basis pursuant to an administrative services agreement; |
(g) | noted that affiliates of the Advisor provide transfer agency services and distribution services to the fund, and that the fund’s distributor also receives Rule 12b-1 payments to support distribution of the fund; |
(h) | noted that the Advisor also derives reputational and other indirect benefits from providing advisory services to the fund; |
(i) | noted that the subadvisory fee for the fund is paid by the Advisor and is negotiated at arm’s length; |
(j) | considered the Advisor’s ongoing costs and expenditures necessary to improve services, meet new regulatory and compliance requirements, and adapt to other challenges impacting the fund industry; and |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 35 |
(k) | considered that the Advisor should be entitled to earn a reasonable level of profits in exchange for the level of services it provides to the fund and the risks that it assumes as Advisor, including entrepreneurial, operational, reputational, litigation and regulatory risk. |
(a) | considered that the Advisor has contractually agreed to waive a portion of its management fee for certain funds of the John Hancock Fund Complex, including the fund (the participating portfolios) or otherwise reimburse the expenses of the participating portfolios (the reimbursement). 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; |
(b) | reviewed the fund’s advisory fee structure and concluded that: (i) the fund’s fee structure contains breakpoints at the subadvisory fee level and that such breakpoints are reflected as breakpoints in the advisory fees for the fund; and (ii) although economies of scale cannot be measured with precision, these arrangements permit shareholders of the fund to benefit from economies of scale if the fund grows. The Board also took into account management’s discussion of the fund’s advisory fee structure; and |
(c) | the Board also considered the effect of the fund’s growth in size on its performance and fees. The Board also noted that if the fund’s assets increase over time, the fund may realize other economies of scale |
(1) | information relating to the Subadvisor’s business, including current subadvisory services to the fund (and other funds in the John Hancock Fund Complex); |
(2) | the historical and current performance of the fund and comparative performance information relating to an applicable benchmark index and comparable funds; |
(3) | the subadvisory fee for the fund, including any breakpoints, and to the extent available, comparable fee information prepared by an independent third party provider of fund data; and |
(4) | information relating to the nature and scope of any material relationships and their significance to the fund’s Advisor and Subadvisor. |
36 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
(1) | the Subadvisor has extensive experience and demonstrated skills as a manager; |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 37 |
(2) | the fund’s performance has generally been in line with or outperformed the historical performance of the fund’s benchmark index; |
(3) | the subadvisory fee is reasonable in relation to the level and quality of services being provided under the Subadvisory Agreement; and |
(4) | noted that the subadvisory fees are paid by the Advisor not the fund and that the subadvisory fee breakpoints are reflected as breakpoints in the advisory fees for the fund in order to permit shareholders to benefit from economies of scale if the fund grows. |
38 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
• | The Fund’s investment strategy remained appropriate for an open-end fund structure; |
• | The Fund was able to meet requests for redemption without significant dilution of remaining shareholders’ interests in the Fund; |
• | The Fund did not report any breaches of the 15% limit on illiquid investments that would require reporting to the Securities and Exchange Commission; |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 39 |
• | The Fund continued to qualify as a Primarily Highly Liquid Fund under the Liquidity Rule and therefore is not required to establish a HLIM; and |
• | The Chief Compliance Officer’s office, as a part of their annual Rule 38a-1 assessment of the Fund’s policies and procedures, reviewed the LRMP’s control environment and deemed it to be operating effectively and in compliance with the Board approved procedures. |
40 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
Independent Trustees | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Hassell H. McClellan, Born: 1945 | 2005 | 192 |
Trustee and Chairperson of the Board | ||
Director/Trustee, Virtus Funds (2008-2020); Director, The Barnes Group (2010-2021); Associate Professor, The Wallace E. Carroll School of Management, Boston College (retired 2013). Trustee (since 2005) and Chairperson of the Board (since 2017) of various trusts within the John Hancock Fund Complex. | ||
James R. Boyle, Born: 1959 | 2015 | 192 |
Trustee | ||
Foresters Financial, Chief Executive Officer (2018–2022) and board member (2017–2022). Manulife Financial and John Hancock, more than 20 years, retiring in 2012 as Chief Executive Officer, John Hancock and Senior Executive Vice President, Manulife Financial. Trustee of various trusts within the John Hancock Fund Complex (2005–2014 and since 2015). | ||
Peter S. Burgess,2 Born: 1942 | 2005 | 192 |
Trustee | ||
Consultant (financial, accounting, and auditing matters) (since 1999); Certified Public Accountant; Partner, Arthur Andersen (independent public accounting firm) (prior to 1999); Director, Lincoln Educational Services Corporation (2004-2021); Director, Symetra Financial Corporation (2010–2016); Director, PMA Capital Corporation (2004–2010). Trustee of various trusts within the John Hancock Fund Complex (since 2005). | ||
William H. Cunningham,2 Born: 1944 | 2012 | 192 |
Trustee | ||
Professor, University of Texas, Austin, Texas (since 1971); former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Director (since 2006), Lincoln National Corporation (insurance); Director, Southwest Airlines (since 2000). Trustee of various trusts within the John Hancock Fund Complex (since 1986). | ||
Grace K. Fey, Born: 1946 | 2008 | 192 |
Trustee | ||
Chief Executive Officer, Grace Fey Advisors (since 2007); Director and Executive Vice President, Frontier Capital Management Company (1988–2007); Director, Fiduciary Trust (since 2009). Trustee of various trusts within the John Hancock Fund Complex (since 2008). | ||
Deborah C. Jackson, Born: 1952 | 2012 | 192 |
Trustee | ||
President, Cambridge College, Cambridge, Massachusetts (since 2011); Board of Directors, Amwell Corporation (since 2020); Board of Directors, Massachusetts Women’s Forum (2018-2020); Board of Directors, National Association of Corporate Directors/New England (2015-2020); Chief Executive Officer, American Red Cross of Massachusetts Bay (2002–2011); Board of Directors of Eastern Bank Corporation (since 2001); Board of Directors of Eastern Bank Charitable Foundation (since 2001); Board of Directors of Boston Stock Exchange (2002–2008); Board of Directors of Harvard Pilgrim Healthcare (health benefits company) (2007–2011). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 41 |
Independent Trustees (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Steven R. Pruchansky, Born: 1944 | 2012 | 192 |
Trustee and Vice Chairperson of the Board | ||
Managing Director, Pru Realty (since 2017); Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (2014-2020); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Member, Board of Advisors, First American Bank (until 2010); Managing Director, Jon James, LLC (real estate) (since 2000); Partner, Right Funding, LLC (2014-2017); Director, First Signature Bank & Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991). Trustee (since 1992), Chairperson of the Board (2011–2012), and Vice Chairperson of the Board (since 2012) of various trusts within the John Hancock Fund Complex. | ||
Frances G. Rathke,2 Born: 1960 | 2020 | 192 |
Trustee | ||
Director, Audit Committee Chair, Oatly Group AB (plant-based drink company) (since 2021); Director, Audit Committee Chair and Compensation Committee Member, Green Mountain Power Corporation (since 2016); Director, Treasurer and Finance & Audit Committee Chair, Flynn Center for Performing Arts (since 2016); Director and Audit Committee Chair, Planet Fitness (since 2016); Chief Financial Officer and Treasurer, Keurig Green Mountain, Inc. (2003-retired 2015). Trustee of various trusts within the John Hancock Fund Complex (since 2020). | ||
Gregory A. Russo, Born: 1949 | 2012 | 192 |
Trustee | ||
Director and Audit Committee Chairman (2012-2020), and Member, Audit Committee and Finance Committee (2011-2020), NCH Healthcare System, Inc. (holding company for multi-entity healthcare system); Director and Member (2012-2018), and Finance Committee Chairman (2014-2018), The Moorings, Inc. (nonprofit continuing care community); Global Vice Chairman, Risk & Regulatory Matters, KPMG LLP (KPMG) (2002–2006); Vice Chairman, Industrial Markets, KPMG (1998–2002). Trustee of various trusts within the John Hancock Fund Complex (since 2008). |
Non-Independent Trustees3 | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Andrew G. Arnott, Born: 1971 | 2017 | 192 |
President and Non-Independent Trustee | ||
Head of Wealth and Asset Management, United States and Europe, for John Hancock and Manulife (since 2018); Director and Executive Vice President, John Hancock Investment Management LLC (since 2005, including prior positions); Director and Executive Vice President, John Hancock Variable Trust Advisers LLC (since 2006, including prior positions); President, John Hancock Investment Management Distributors LLC (since 2004, including prior positions); President of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). Trustee of various trusts within the John Hancock Fund Complex (since 2017). |
42 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
Non-Independent Trustees3 (continued) | ||
Name, year of birth Position(s) held with Trust Principal occupation(s) and other directorships during past 5 years | Trustee of the Trust since1 | Number of John Hancock funds overseen by Trustee |
Marianne Harrison, Born: 1963 | 2018 | 192 |
Non-Independent Trustee | ||
President and CEO, John Hancock (since 2017); President and CEO, Manulife Canadian Division (2013–2017); Member, Board of Directors, Boston Medical Center (since 2021); Member, Board of Directors, CAE Inc. (since 2019); Member, Board of Directors, MA Competitive Partnership Board (since 2018); Member, Board of Directors, American Council of Life Insurers (ACLI) (since 2018); Member, Board of Directors, Communitech, an industry-led innovation center that fosters technology companies in Canada (2017-2019); Member, Board of Directors, Manulife Assurance Canada (2015-2017); Board Member, St. Mary’s General Hospital Foundation (2014-2017); Member, Board of Directors, Manulife Bank of Canada (2013- 2017); Member, Standing Committee of the Canadian Life & Health Assurance Association (2013-2017); Member, Board of Directors, John Hancock USA, John Hancock Life & Health, John Hancock New York (2012–2013). Trustee of various trusts within the John Hancock Fund Complex (since 2018). |
Principal officers who are not Trustees | |
Name, year of birth Position(s) held with Trust Principal occupation(s) during past 5 years | Current Position(s) with the Trust since |
Charles A. Rizzo, Born: 1957 | 2007 |
Chief Financial Officer | |
Vice President, John Hancock Financial Services (since 2008); Senior Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2008); Chief Financial Officer of various trusts within the John Hancock Fund Complex (since 2007). | |
Salvatore Schiavone, Born: 1965 | 2009 |
Treasurer | |
Assistant Vice President, John Hancock Financial Services (since 2007); Vice President, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2007); Treasurer of various trusts within the John Hancock Fund Complex (since 2007, including prior positions). | |
Christopher (Kit) Sechler, Born: 1973 | 2018 |
Secretary and Chief Legal Officer | |
Vice President and Deputy Chief Counsel, John Hancock Investment Management (since 2015); Assistant Vice President and Senior Counsel (2009–2015), John Hancock Investment Management; Assistant Secretary of John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2009); Chief Legal Officer and Secretary of various trusts within the John Hancock Fund Complex (since 2009, including prior positions). | |
Trevor Swanberg, Born: 1979 | 2020 |
Chief Compliance Officer | |
Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (since 2020); Deputy Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2019–2020); Assistant Chief Compliance Officer, John Hancock Investment Management LLC and John Hancock Variable Trust Advisers LLC (2016–2019); Vice President, State Street Global Advisors (2015–2016); Chief Compliance Officer of various trusts within the John Hancock Fund Complex (since 2016, including prior positions). |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 43 |
1 | Each Trustee holds office until his or her successor is elected and qualified, or until the Trustee’s death, retirement, resignation, or removal. Mr. Boyle has served as Trustee at various times prior to the date listed in the table. |
2 | Member of the Audit Committee. |
3 | The Trustee is a Non-Independent Trustee due to current or former positions with the Advisor and certain affiliates. |
44 | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | ANNUAL REPORT |
Steven R. Pruchansky, Vice Chairperson
Andrew G. Arnott†
James R. Boyle
Peter S. Burgess*
William H. Cunningham*
Grace K. Fey
Marianne Harrison†
Deborah C. Jackson
Frances G. Rathke*
Gregory A. Russo
President
Chief Financial Officer
Treasurer
Secretary and Chief Legal Officer
Chief Compliance Officer
You can also contact us: | ||
800-225-5291 | Regular mail: | Express mail: |
jhinvestments.com | John Hancock Signature Services, Inc. P.O. Box 219909 Kansas City, MO 64121-9909 | John Hancock Signature Services, Inc. 430 W 7th Street Suite 219909 Kansas City, MO 64105-1407 |
ANNUAL REPORT | JOHN HANCOCK ABSOLUTE RETURN CURRENCY FUND | 45 |
GOVERNANCE FUNDS
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MF2331536 | 364A 7/22 |
ITEM 2. CODE OF ETHICS.
(a)As of the end of the fiscal year July 31, 2022 the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its Chief Executive Officer, Chief Financial Officer and Treasurer (respectively, the principal executive officer, the principal financial officer and the principal accounting officer, the "Covered Officers"). A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Frances G. Rathke is the audit committee financial expert, effective March 25, 2022, and is "independent", pursuant to general instructions on Form N-CSR Item 3.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit fees:
The aggregate fees billed for professional services rendered by the principal accountant for the audits of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements amounted to the following for the fiscal years ended July 31, 2022 and 2021. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund |
| July 31, 2022 |
| July 31, 2021 |
Absolute Return Currency Fund | $ | 49,095 | $ | 46,576 |
(b) Audit-related services
Audit-related fees for assurance and related services by the principal accountant are billed to the registrant or to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser ("control affiliates") that provides ongoing services to the registrant. The nature of the services provided was affiliated service provider internal controls reviews. Amounts billed to the registrant were as follows:
Fund |
| July 31, 2022 |
| July 31, 2021 |
Absolute Return Currency Fund | $ | 776 | $ | 604 |
Amounts billed to control affiliates were $119,500 and $116,000 for the fiscal years ended July 31, 2022 and 2021, respectively.
(c) Tax Fees
The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning ("tax fees") amounted to the following for the fiscal years ended July 31, 2022 and 2021. The nature of the services comprising the tax fees was the review of the registrant's tax returns and tax distribution requirements. These fees were billed to the registrant and were approved by the registrant's audit committee.
Fund |
| July 31, 2022 |
| July 31, 2021 |
Absolute Return Currency Fund | $ | 4,192 | $ | 3,992 |
(d) All Other Fees
The nature of the services comprising all other fees is advisory services provided to the investment manager. Other fees amounted to the following for the fiscal years ended July 31, 2022 and 2021:
Fund |
| July 31, 2022 |
| July 31, 2021 |
Absolute Return Currency Fund | $ | 362 | $ | 89 |
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm (the "Auditor") relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of audit-related and non-audit services by the Auditor. The policies and procedures require that any audit-related and non-audit service provided by the Auditor and any non-audit service provided by the Auditor to a fund service provider that relates directly to the operations and financial reporting of a fund are subject to approval by the Audit Committee before such service is provided. Audit-related services provided by the Auditor that are expected to exceed $25,000 per year/per fund are subject to specific pre-approval by the Audit Committee. Tax services provided by the Auditor that are expected to exceed $30,000 per year/per fund are subject to specific pre-approval by the Audit Committee.
All audit services, as well as the audit-related and non-audit services that are expected to exceed the amounts stated above, must be approved in advance of provision of the service by formal resolution of the Audit Committee. At the regularly scheduled Audit Committee meetings, the Committee reviews a report summarizing the services, including fees, provided by the Auditor.
(e)(2) Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees, Tax Fees and All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception under Rule 2-01 of Regulation S-X.
(f)According to the registrant's principal accountant for the fiscal year ended July 31, 2022, the percentage of hours spent on the audit of the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons who were not full-time, permanent employees of principal accountant was less than 50%.
(g)The aggregate non-audit fees billed by the registrant's principal accountant for non-audit services rendered to the registrant and rendered to the registrant's control affiliates were $962,138 for the fiscal year ended July 31, 2022 and $960,465 for the fiscal year ended July 31, 2021.
(h)The audit committee of the registrant has considered the non-audit services provided by the registrant's principal accountant to the control affiliates and has determined that the services that were not pre-approved are compatible with maintaining the principal accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
The registrant has a separately-designated standing audit committee comprised of independent trustees. The members of the audit committee are as follows:
Frances G. Rathke – Chairperson, effective March 25, 2022
Peter S. Burgess
William H. Cunningham
ITEM 6. SCHEDULE OF INVESTMENTS.
(a)Not applicable.
(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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant's Board of Trustees. A copy of the procedures is filed as an exhibit to this Form
N-CSR. See attached "John Hancock Funds – Nominating, Governance and Administration Committee Charter".
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-CSR, the registrant's principal executive officer and principal financial officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Code of Ethics for Covered Officers is attached.
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 Arnott
Andrew Arnott
President
Date: September 23, 2022
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 Arnott
Andrew Arnott
President
Date: September 23, 2022
/s/ Charles A. Rizzo
Charles A. Rizzo
Chief Financial Officer
Date: September 23, 2022